-----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, I8fDGdwiHULuj/52aflxPF6c5G5mjmVjUB4bgp7cewkL4OaQUzVHyM9ROaxHIX9n RuUxJT4urEdG8AySQcRxjA== 0001193125-04-055654.txt : 20040401 0001193125-04-055654.hdr.sgml : 20040401 20040401165105 ACCESSION NUMBER: 0001193125-04-055654 CONFORMED SUBMISSION TYPE: N-14 PUBLIC DOCUMENT COUNT: 15 FILED AS OF DATE: 20040401 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HANCOCK JOHN VARIABLE SERIES TRUST I CENTRAL INDEX KEY: 0000785303 IRS NUMBER: 042889957 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-14 SEC ACT: 1933 Act SEC FILE NUMBER: 333-114139 FILM NUMBER: 04710175 BUSINESS ADDRESS: STREET 1: 200 CLARENDON ST STREET 2: P O BOX 111 CITY: BOSTON STATE: MA ZIP: 02117-0111 BUSINESS PHONE: 6175729687 MAIL ADDRESS: STREET 1: 200 CLARENDON ST STREET 2: PO BOX 111 CITY: BOSTON STATE: MA ZIP: 02117-0111 FORMER COMPANY: FORMER CONFORMED NAME: HANCOCK JOHN VARIABLE SERIES FUND I INC DATE OF NAME CHANGE: 19880502 N-14 1 dn14.txt FORM N-14 FOR JOHN HANCOCK VARIABLE SERIES TRUST I Securities Act Registration No. 333-______ U.S. Securities and Exchange Commission Washington, D.C. 20549 ---------- Form N-14 Registration Statement Under the Securities Act of 1933 [_] Pre-Effective Amendment No. ____ [_] Post Effective Amendment No. _____ (Check appropriate box or boxes) ---------- John Hancock Variable Series Trust I (Exact Name of Registrant as Specified in Declaration of Trust) 197 Clarendon Street Boston, Massachusetts 02117 (Address of Principal Executive Officer) Registrant's Telephone Number: (713) 214-1456 Name and address of Agent for Services: Copy to: ARNOLD BERGMAN, ESQUIRE THOMAS C. LAUERMAN, ESQUIRE John Hancock Life Insurance Company Foley & Lardner LLP 197 Clarendon Street Washington, D.C. 20036 Boston, MA 02117 ---------- Approximate Date of Proposed Public Offering: As soon as practicable after the registration statement becomes effective under the Securities Act of 1933. Pursuant to Rule 429 under the Act, the prospectus in this registration statement also relates to the Registrant's currently effective registration statement on Form N-1A, File No. 33-2081. No filing fee is due in reliance on Section 24(f) of the Act. The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine. ================================================================================ MANUFACTURERS INVESTMENT TRUST 73 Tremont Street Boston, Massachusetts 02108 May __, 2004 Dear Variable Annuity and Variable Life Contract Owners: A Special Meeting of Shareholders of Manufacturers Investment Trust ("MIT") will be held at 73 Tremont Street, Boston, Massachusetts 02108, on June 18, 2004 at 10:00 a.m., Boston Time to consider the proposed reorganization of the International Index Trust, a separate series of MIT, into the International Equity Index Fund, a separate series of the John Hancock Variable Series Trust I ("JHVST") (the "Reorganization"). The proposed Reorganization is described in detail in the enclosed Proxy Statement/Prospectus and briefly summarized in the questions and answers attached to this letter. As a result of the Reorganization, shareholders whose assets are invested in the International Index Trust will be able to pursue substantially similar investment objectives and policies in the context of a larger fund which has shown better prospects for growth and demonstrated stronger performance in tracking its target indices. The Boards of Trustees of MIT and JHVST have unanimously approved the proposed Reorganization. Although you are not a shareholder of MIT, contract values under your variable annuity or variable life contracts issued by The Manufacturers Life Insurance Company (U.S.A.) ("Manulife U.S.A.") or The Manufacturers Life Insurance Company of New York ("Manulife New York") are invested in shares of one or more of the separate series of MIT, including the International Index Trust, through subaccounts of separate accounts established by these companies for that purpose. Since the value of your contract depends in part on the investment performance of the shares of the International Index Trust, you have the right to instruct Manulife U.S.A. or Manulife New York, as appropriate, how such shares attributable to your contract are voted. Enclosed you will find a Notice of Special Meeting of Shareholders, a Proxy Statement/Prospectus of MIT and JHVST, and a Voting Instructions Form for the shares of the International Index Trust attributable to your contract as of April 20, 2004, the record date for the meeting. We encourage you to read these materials in their entirety before giving voting instructions. Also enclosed for additional information is the current prospectus of JHVST. In order for shares to be voted at the meeting based on your instructions, we urge you to complete and mail your Voting Instructions Form in the attached postage-paid envelope, allowing sufficient time for its receipt by June 17, 2004. The Board of Trustees of MIT unanimously recommends that you approve the Reorganization. If you have any questions regarding the proposed Reorganization, please call the appropriate toll-free number below: --For Manulife U.S.A. variable annuity contracts: (800) 344-1029 --For Manulife U.S.A. variable life contracts: (800) 827-4546 --For Manulife New York variable annuity contracts: (800) 551-2078 --For Manulife New York variable life contracts: (888) 267-7784 Sincerely, /s/ ANDREW CORSELLI Andrew Corselli Secretary Manufacturers Investment Trust Questions and Answers Q: What is the Reorganization? A: Under the Reorganization proposal, all the assets, subject to all the liabilities, of MIT's International Index Trust (the "Acquired Fund") will be transferred to JHVST's International Equity Index Fund (the "Acquiring Fund") in exchange for shares of the Acquiring Fund. As a result of the Reorganization, each shareholder of the Acquired Fund will receive that number of shares of the Acquiring Fund equal in value at the time of the exchange to the value of the shareholder's shares of the Acquired Fund at that time, and the Acquired Fund will be liquidated and terminate. The holders of Series I and Series II shares of the Acquired Fund will receive, respectively, Series I and Series II shares of the Acquiring Fund. If approved by shareholders, the Reorganization is expected to take place after the close of business on June 18, 2004. Q: What are the reasons for the Reorganization? A: The Reorganization is intended to provide a means by which contract owners participating in the Acquired Fund, in combination with the Acquiring Fund, may pursue substantially similar investment objectives and policies in the context of a larger fund which has shown better prospects for growth and demonstrated stronger performance in tracking its target indices. Q: What differences will there be if the Reorganization is approved? A: There will be very significant differences. Although both the Acquired and Acquiring Funds are international index funds and thus have substantially similar investment objectives, strategies and risks, the Acquiring Fund has a different target index (the MSCI ACWI ex US Index) than the Acquired Fund (the MSCI EAFE Index), is a series of JHVST rather than of MIT and has a different investment adviser, a different subadviser and different portfolio managers than the Acquired Fund. In addition, the total annual fund operating expenses of the Acquiring Fund are expected to be somewhat higher than those of the Acquired Fund. Q: Will the Reorganization affect my contract value? Will there be any tax implications? A: Your contract value will be the same immediately after as immediately before the Reorganization. In addition, the Reorganization is expected to be tax-free for federal income tax purposes, and the Funds will obtain an opinion from counsel to this effect. The Reorganization will not result in individual contract owners recognizing any gain or loss for federal income tax purposes. Q: Will I incur any fee in connection with the Reorganization? A: You will not incur directly any fee in connection with the Reorganization. However, the expenses of the Reorganization are being paid by the Acquired Fund and the Acquiring Fund in equal parts, and contract owners participating in these Funds will therefore bear indirectly their proportionate shares of such expenses. Q: How do I give voting instructions? A: Follow two simple steps: FIRST: Read the attached Proxy Statement/Prospectus. SECOND: Complete the enclosed Voting Instruction Form and return it in the enclosed postage-paid envelope. Q: Do my voting instructions make a difference? A: Whether you are a large or small investor, your voting instructions are important. You are urged to participate in this process to ensure that Manulife U.S.A. and Manulife New York represent your wishes in casting votes at the shareholders meeting. The Board of Trustees of MIT has voted unanimously in favor of the Reorganization, and your approval is needed to implement the Reorganization. MANUFACTURERS INVESTMENT TRUST 73 Tremont Street Boston, Massachusetts 02108 NOTICE OF SPECIAL MEETING OF SHAREHOLDERS To the Shareholders of the International Index Trust of Manufacturers Investment Trust: Notice is hereby given that a Special Meeting of Shareholders (the "Meeting") of the International Index Trust of Manufacturers Investment Trust ("MIT") will be held at 73 Tremont Street, Boston, Massachusetts 02108, on June 18, 2004 at 10:00 a.m., Boston Time. A Proxy Statement/Prospectus which provides information about the purposes of the Meeting is included with this notice. The Meeting will be held for the following purposes: Proposal 1 Approval of Agreement and Plan of Reorganization (the "Plan") providing for the acquisition of all of the assets, subject to all of the liabilities, of the International Index Trust (the "Acquired Fund"), a separate series of MIT, by and in exchange for Series I and Series II shares of the International Equity Index Fund (the "Acquiring Fund"), a separate series of the John Hancock Variable Series Trust I ("JHVST"). Any other business that may properly come before the Meeting. The Board of Trustees of MIT recommends that shareholders vote FOR Proposal 1. Approval of the Plan under Proposal 1 will require the affirmative vote of the holders of at least a "Majority of the Outstanding Voting Securities" (as defined in the accompanying Proxy Statement/Prospectus) of the Acquired Fund. By approving the Plan, shareholders of the Acquired Fund will be deemed to have waived certain of MIT's investment limitations insofar as they might be deemed to apply to the transactions contemplated by the Plan. Each shareholder of record at the close of business on April 20, 2004 is entitled to receive notice of and to vote at the Meeting. Sincerely yours, /s/ ANDREW CORSELLI Andrew Corselli Secretary May __, 2004 Boston, Massachusetts MANUFACTURERS INVESTMENT TRUST JOHN HANCOCK VARIABLE SERIES TRUST I 73 Tremont Street 197 Clarendon Street Boston, Massachusetts 02108 Boston, Massachusetts 02117 ("MIT") ("JHVST") ------------------ PROXY STATEMENT/PROSPECTUS Relating to the Acquisition of All of the Assets, Subject to All of the Liabilities, of the MIT International Index Trust by and in Exchange for Series I and Series II Shares of the JHVST International Equity Index Fund This Proxy Statement/Prospectus is furnished in connection with the solicitation by the Board of Trustees of Manufacturers Investment Trust ("MIT") (sometimes referred to herein as the "MIT Board") of proxies to be used at a special meeting of the shareholders of its International Index Trust to be held at 73 Tremont Street, Boston, Massachusetts 02108, on June 18, 2004, at 10:00 a.m., Boston Time (the "Meeting"). At the Meeting, shareholders of the International Index Trust will be asked to consider and approve a proposed Agreement and Plan of Reorganization (the "Plan") pursuant to which all the assets, subject to all the liabilities, of the International Index Trust (the "Acquired Fund"), a separate series of MIT, will be transferred to the International Equity Index Fund (the "Acquiring Fund"), a separate series of the John Hancock Variable Series Trust I ("JHVST"), in exchange for shares of the Acquiring Fund. As a result of the Reorganization, each shareholder of the Acquired Fund will receive that number of shares of the Acquiring Fund equal in value at the time of the exchange to the value of the shareholder's shares of the Acquired Fund at such time, and the Acquired Fund will be liquidated and terminate. The holders of Series I and Series II shares of the Acquired Fund will receive, respectively, Series I and Series II shares of the Acquiring Fund. If approved by shareholders of the Acquired Fund, the Reorganization is expected to occur after the close of business on June 18, 2004. The terms and conditions of the Reorganization are more fully described in this Proxy Statement/Prospectus and in the form of the Agreement and Plan of Reorganization attached hereto as Exhibit A. This Proxy Statement/Prospectus contains information shareholders should know before voting on the proposed Reorganization. Please read it carefully and retain it for future reference. The following documents have been filed with the Securities and Exchange Commission ("SEC") and are incorporated by reference into this Proxy Statement/Prospectus: - --The Prospectus of JHVST (relating to the Acquiring A copy of the JHVST Prospectus accompanies this Fund) dated May 1, 2004 (the "JHVST Prospectus"). Proxy Statement/Prospectus. - --The Statement of Additional Information of JHVST dated Copies of this document are available at no charge by May __, 2004 relating to this Proxy Statement/Prospectus writing to JHVST at the above address or by calling (the "Statement of Additional Information"). this toll free number: 800-576-2227. - --The Prospectus of MIT (relating to the Acquired Fund) Copies of the MIT Prospectus are available at no dated May 1, 2004 (the "MIT Prospectus"). charge by writing to MIT at the above address or by calling the appropriate toll free number listed below.
Shareholders who have questions about the Reorganization or this Proxy Statement/Prospectus may call the appropriate toll-free number listed below: --(800) 344-1029 (The Manufacturers Life Insurance Company (U.S.A.) variable annuity contracts) --(800) 827-4546 (The Manufacturers Life Insurance Company (U.S.A.) variable life contracts) --(800) 551-2078 (The Manufacturers Life Insurance Company of New York variable annuity contracts) --(888) 267-7784 (The Manufacturers Life Insurance Company of New York variable life contracts). Each of MIT and JHVST is subject to the informational requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940 Act and files reports, proxy materials and other information with the SEC. Such reports, proxy materials and other information may be inspected at the public reference facilities maintained by the SEC at 450 Fifth Street, N.W., Washington, D.C. 20549. Copies of such materials may also be obtained from the Public Reference Branch, Office of Consumer Affairs and Information Services, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549, at prescribed rates, or at no charge from the EDGAR database on the SEC's website: "www.sec.gov." The SEC has not approved or disapproved these securities or passed upon the accuracy or adequacy of this Proxy Statement/Prospectus. Any representation to the contrary is a criminal offense. The date of this Proxy Statement/Prospectus is May __, 2004. 2 PROXY STATEMENT/PROSPECTUS TABLE OF CONTENTS
Page ---- Introduction ..................................................................... Proposal 1 Approval of Agreement and Plan of Reorganization providing for the acquisition of all of the assets, subject to all of the liabilities, of the MIT International Index Trust by and in exchange for Series I and Series II shares of the JHVST International Equity Index Fund ..................................... Summary .......................................................................... Overview of Proposed Reorganization .............................................. Comparison of Acquired and Acquiring Funds ....................................... Investment Objectives and Policies ............................................... Fees and Expenses of the Funds ................................................... Comparison of Principal Investment Risks ......................................... Performance ...................................................................... Multiple Classes of Shares ....................................................... Rule 12b-1 Fees .................................................................. Dividends and Distributions ...................................................... Purchase and Redemption of Shares ................................................ Tax Consequences ................................................................. Massachusetts Business Trusts .................................................... Additional Information About the Funds ........................................... Information About the Reorganization ............................................. Agreement and Plan of Reorganization ............................................. Reasons for the Reorganization ................................................... Description of the Securities to be Issued ....................................... Federal Income Tax Consequences .................................................. Capitalization ................................................................... Voting Information ............................................................... Ownership of Shares of the Funds ................................................. Financial Statements ............................................................. Legal Matters .................................................................... Other Information ................................................................ Exhibit A -- Form of Agreement and Plan of Reorganization ...................... Appendix A -- The Acquired Fund: Management's Discussion of Fund Performance .................................................. Appendix B -- The Acquiring Fund: Management's Discussion of Fund Performance ..................................................
3 INTRODUCTION This Proxy Statement/Prospectus is furnished in connection with the solicitation by the Board of Trustees of MIT of proxies to be used at a special meeting of shareholders of its International Index Trust to be held at 73 Tremont Street, Boston, Massachusetts 02108, on June 18, 2004, at 10:00 a.m., Boston Time (the "Meeting"). The purpose of the Meeting is to consider the proposed Reorganization providing for the transfer of all the assets, subject to all the liabilities, of MIT's International Index Trust (the "Acquired Fund") to JHVST's International Equity Index Fund (the "Acquiring Fund") in exchange for Series I and Series II shares of the Acquiring Fund. All shareholders of record of the Acquired Fund at the close of business on April 20, 2004 (the "Record Date") are entitled to one vote for each share of beneficial interest of the Acquired Fund held. MIT and JHVST. Each of MIT and JHVST is a Massachusetts business trust which is a no-load open-end investment company, commonly known as a mutual fund, registered under the Investment Company Act of 1940, as amended (the "1940 Act"). MIT currently offers __ separate series, including the Acquired Fund (the "MIT Funds"), and JHVST currently offers 30 separate series, including the Acquiring Fund (the "JHVST Funds"). The shares of the MIT Funds and the JHVST Funds are not sold directly to the public but generally only to insurance companies and their separate accounts as the underlying investment media for variable annuity and variable life insurance contracts ("variable contracts") issued by the insurance companies, certain entities affiliated with the insurance companies, and trustees of qualified pension and retirement plans. See "Voting Information" and "Ownership of Shares of the Funds" below. Investment Management. Manufacturers Securities Services, LLC ("MSS") serves as investment adviser for MIT and for each MIT Fund that has an adviser. As adviser, MSS administers the business and affairs of MIT and selects, contracts with and compensates subadvisers which manage the investment and reinvestment of the assets of the MIT Funds. MSS does not itself manage any of MIT's portfolio assets but has ultimate responsibility to oversee the subadvisers. In this connection, MSS (i) monitors the compliance of the subadvisers with the investment objectives and related policies of the MIT Funds, (ii) reviews the performance of the subadvisers and (iii) reports periodically on such performance to the MIT Board. The ultimate parent of MSS is Manulife Financial Corporation ("MFC"), the holding company of The Manufacturers Life Insurance Company ("Manulife"), a Canadian stock life insurance company, and its subsidiaries, collectively known as Manulife Financial. The investment adviser for the JHVST Funds is John Hancock Life Insurance Company ("JHLICO"). In this capacity, JHLICO recommends subadvisers for the JHVST Funds and oversees and evaluates the subadvisers performance. Each subadviser has discretion to purchase and sell securities for the JHVST Fund that it manages. While each subadviser employs its own investment approach in managing a JHVST Fund, it must also adhere to the Fund's investment goals, strategies and restrictions. JHLICO is a wholly owned subsidiary of John Hancock Financial Services, Inc. ("John Hancock"). As the result of a merger between John Hancock and MFC that became effective on April __, 2004, John Hancock is a wholly owned subsidiary of MFC. MSS and JHLICO are registered as investment advisers under the Investment Advisers Act of 1940 (the "Advisers Act"). Each of the subadvisers to the MIT Funds and the JHVST Funds is also registered as an investment adviser under the Advisers Act or is exempt from such registration. PROPOSAL 1 APPROVAL OF AGREEMENT AND PLAN OF REORGANIZATION PROVIDING FOR THE ACQUISITION OF ALL OF THE ASSETS, SUBJECT TO ALL OF THE LIABILITIES, OF THE MIT INTERNATIONAL INDEX TRUST BY AND IN EXCHANGE FOR SERIES I AND SERIES II SHARES OF THE JHVST INTERNATIONAL EQUITY INDEX FUND SUMMARY The following is a summary of more complete information appearing later in or incorporated by reference into this Proxy Statement/Prospectus. Shareholders should read the entire Proxy Statement/Prospectus carefully. 4 Overview of Proposed Reorganization At its meeting held on April 1-2, 2004, the MIT Board, including all the Trustees who are not "interested persons" (as defined in the 1940 Act) of MIT (the "Independent Trustees"), approved an Agreement and Plan of Reorganization (the "Plan") providing for: (a) the transfer of all of the assets, subject to all of the liabilities, of the MIT International Index Trust (the "Acquired Fund") to the JHVST International Equity Index Fund (the "Acquiring Fund") in exchange for Series I and Series II shares of the Acquiring Fund; (b) the distribution to shareholders of the Acquired Fund of such Acquiring Fund shares; and (c) the liquidation and termination of the Acquired Fund (the "Reorganization"). As a result of the Reorganization, each shareholder of the Acquired Fund will become a shareholder of the Acquiring Fund. The total value of all shares of the Acquiring Fund issued in the Reorganization will equal the total value of the net assets of the Acquired Fund. The number of full and fractional shares of the Acquiring Fund received by a shareholder of the Acquired Fund will be equal in value to the value of that shareholder's shares of the Acquired Fund as of the close of regularly scheduled trading on the New York Stock Exchange on the closing date of the Reorganization (the "Exchange Date"). Holders of Series I and Series II shares of the Acquired Fund will receive, respectively, Series I and Series II shares of the Acquiring Fund. The Effective Time of the Reorganization is expected to occur after the close of business on June 18, 2004 or on such later date as may be determined by MIT and JHVST. The consummation of the Reorganization is contingent on the satisfaction of the conditions described below under "Information About the Reorganization -- The Agreement and Plan of Reorganization." Comparison of Acquired and Acquiring Funds
- --------------------------------------------------------------------------------------------------------------- MIT International Index Trust JHVST International Equity Index Fund (Acquired Fund) (Acquiring Fund) - --------------------------------------------------------------------------------------------------------------- Business A separate series of MIT. A separate series of JHVST. - --------------------------------------------------------------------------------------------------------------- Approximate $99,376,000.* $159,036,000. Net Assets as of 12/31/03: *Includes "seed capital" expected to be withdrawn prior to the Reorganization. See "Capitalization" below. - --------------------------------------------------------------------------------------------------------------- Investment Manufacturers Securities Services, LLC John Hancock Life Insurance Company Adviser: ("MSS"). ("JHLICO"). - --------------------------------------------------------------------------------------------------------------- Investment MFC Global Investment Management (U.S.A.) SSgA Funds Management, Inc. ("SSgA"). SSgA Subadviser and Limited ("MFC Global"). MFC Global is an became the subadviser to the Acquiring Fund Portfolio affiliate of MSS and JHLICO. effective March 29, 2004. Managers: The portfolio managers are: The SsgA portfolio management is overseen by: Carson Jen (since January 2003) Jeffery Beach (since March 2004) --Assistant Vice President of MFC Global --Principal of SSgA --Joined MFC Global in 1997 --Joined SSgA in 1986 Narayan Ramani, CFA (since November 2003) James Francis, CFA (since March 2004) --Joined MFC Global in 1998 --Principal of SSgA --Joined SSgA in 1987 - --------------------------------------------------------------------------------------------------------------- Investment Seeks to approximate the aggregate total Seeks to track the performance of a Objective: return of a foreign equity market index. broad-based equity index of foreign companies in developed and emerging markets. - --------------------------------------------------------------------------------------------------------------- Principal Invests under normal market conditions at Normally invests more than 80% of its Investment least 80% of its net assets (plus any assets in securities listed in the Morgan Strategy: borrowings for investment purposes) in Stanley Capital International All Country (a) the common stocks that are included World Excluding U.S. ("MSCI ACWI ex US") in the Morgan Stanley Capital Index. Prior to November 1, 2003, the International Europe, Australia, Far East Fund normally invested more than 80% of its ("MSCI EAFE") Index and (b) securities assets in securities listed in the MSCI (which may or may not be included in the EAFE GDP Index, and was managed relative to MSCI EAFE Index) that the subadviser a composite of 90% MSCI EAFE GDP Index and believes as a group will behave in a 10% MSCI Emerging Markets Free ("MSCI EMF") manner similar to the index. Index. - ---------------------------------------------------------------------------------------------------------------
5 - --------------------------------------------------------------------------------------------------------------- International Europe, Australia, Far East 2003, the Fund normally invested more than ("MSCI EAFE") Index and (b) securities 80% of its assets in securities listed in the (which may or may not be included in the MSCI EAFE GDP Index, and was managed relative MSCI EAFE Index) that the subadviser to a composite of 90% MSCI EAFE GDP Index and believes as a group will behave in a 10% MSCI Emerging Markets Free ("MSCI EMF") manner similar to the index. Index. - --------------------------------------------------------------------------------------------------------------- Other An index is an unmanaged group of The Fund is managed relative to the MSCI Investment securities whose overall performance is ACWF ex US Index, which includes companies Strategies: used as an investment benchmark. The representative of the market structure of subadviser attempts to match the developed and emerging market countries in performance of the MSCI EAFE Index by the Americas (excluding the U.S.), holding all or a representative sample of Europe/Middle East and Asia/Pacific the securities that comprise the index or Regions. Country index weights are based by holding securities (which may or may upon a country's market capitalization. not be included in the index) that the subadviser believes as a group will The subadviser employs a passive management behave in a manner similar to the index. strategy using quantitative techniques to The MSCI EAFE Index includes companies replicate, as closely as possible, the representative of the market structure of characteristics of the index, including developed countries in the Europe and country and sector weights. The Pacific Regions. composition of the index changes from time to time, and the subadviser reflects those changes as soon as practical. - --------------------------------------------------------------------------------------------------------------- Hedging and For hedging purposes, the Fund is The Fund is normally fully invested. The Other Strategies: authorized to invest in futures contracts. subadviser may invest in stock index derivatives to maintain market exposure and manage cash flow. Although the Fund may employ foreign currency hedging techniques, it normally maintains the currency exposure of the underlying equity investments. - --------------------------------------------------------------------------------------------------------------- Other Securities of foreign issuers in which The Fund may invest in other types of Securities: the Fund may invest include American securities that are not primary investment Depositary Receipts (ADRs), Global vehicles, for example: ADRs, GDRs, EDRs, Depositary Receipts (GDRs) and European certain Exchange Traded Funds (EFTs), cash Depositary Receipts (EDRs). Depositary equivalents and certain derivatives such as receipts are certificates, typically stock index futures. issued by a bank or trust company, that give their holders the right to receive securities issued by a foreign or domestic company. - --------------------------------------------------------------------------------------------------------------- Temporary In abnormal market conditions, the Fund In abnormal market conditions, the Fund may Defensive may invest all or a portion of its assets take temporary defensive measures - such as Investing: in cash and securities that are highly holding large amounts of cash and cash liquid, including (a) money market equivalents - that are inconsistent with instruments such as short-term U.S. the Fund's primary investment strategy. In government obligations, commercial paper taking those measures, the Fund may not and repurchase agreements; and (b) achieve its investment goal. securities of other investment companies that are money market funds. To the extent the Fund is in a defensive position, its ability to achieve its investment objective will be limited. - ---------------------------------------------------------------------------------------------------------------
Investment Objectives and Policies The investment objectives, policies and risks of the Acquired and Acquiring Funds are substantially similar. Both Funds are index funds, which, unlike actively managed funds, seek to mirror the performance their target indices, and both Funds are international index funds which invest principally in foreign equity securities. The two Funds differ in that they have different target indices. The MSCI EAFE Index, which is the target index for the Acquired Fund, includes companies in the developed Europe and Pacific Regions, while the broader target index for the Acquiring Fund, the MSCI ACWI ex US Index, includes primarily companies in the developed Europe and Pacific Regions and, to a lesser extent, companies in developing countries. In addition, while the Acquiring Fund will normally invest 80% of its assets in companies which are included in its target index, the Acquired Fund, with respect to the same portion of its assets, may invest in companies which are not included in its target index but which its subadviser believes as a group will behave in a manner similar to that index. In other words, the Acquired 6 Fund may seek to approximate the aggregate total return of its target index through investments in companies that are not included in that index. The investment objectives and strategies of the Acquired Fund and the Acquiring Fund are more fully described in, respectively, the MIT Prospectus and the JHVST Prospectus, which are incorporated herein by reference. See "Additional Information About the Funds" below. For a comparison of the principal risks of investing in the Acquired and Acquiring Funds, see "Comparison of Principal Investment Risks" below. Fees and Expenses of the Funds The table which follows sets forth: (i) the ratios of expenses to average net assets of the Series I and Series II shares of the Acquired Fund for the year ended December 31, 2003, (ii) the estimated expenses for the current year of the Series I and Series II shares of the Acquiring Fund, which were first offered on May 1, 2004, and (iii) the pro forma expense ratios of the Series I and Series II shares of the Acquiring Fund assuming that the Reorganization, including the issuance of Series I and Series II shares in connection therewith, had occurred at the commencement of the year ended December 31, 2003, and based upon the fee arrangements that will be in place upon the consummation of the Reorganization. As shown below, giving effect to the voluntary expense reimbursement described in note A to the table, the expense ratios of the Acquiring Fund are expected to be 0.02% higher than those of the Acquired Fund. Accordingly, shareholder approval of the Reorganization is expected to result in somewhat higher expenses for shareholders after the Reorganization. The expense ratios below and the expense examples which follow do not reflect the fees and expenses of any variable contract that may use MIT or JHVST as its underlying investment medium. If such fees and expenses were reflected, the expense ratios and shareholder expenses figures would be higher.
Annual Fund Operating Expenses (As a Percentage of Average Daily Net Assets) MIT International JHVST International JHVST International Index Trust Equity Index Fund Equity Index Fund (Acquired Fund) (Acquiring Fund) (Acquiring Fund) (Estimated Expenses Pro Forma for the Current Year) (Assuming Reorganization) Series I Series II Series I Series II Series I Series II Management Fee 0.40% 0.40% 0.17% 0.17% 0.16% 0.16% Distribution and Service 0.15% 0.35% 0.40% 0.60% 0.40% 0.60% (12b-1) Fee Other Expenses 0.07% /A/ 0.07% /A/ 0.05% /B/ 0.05% /B/ 0.06% /C/ 0.06% /C/ ---- ---- ---- ---- ---- ---- Total Fund Annual 0.62% /A/ 0.82% /A/ 0.62% 0.82% 0.62% 0.82% Expenses
- ---------------------- /A/ MSS has voluntarily agreed to pay expenses of the Acquired Fund (excluding management fees and 12b-1 fees) that exceed 0.05%. If such expense reimbursement were reflected in the table, "Other Expenses" for both Series I shares and Series II shares would be 0.05%, and "Total Fund Annual Expenses" for Series I shares and Series II shares would be, respectively, 0.60% and 0.80%. This expense reimbursement may be terminated by MSS at any time. /B/ Other Expenses are based on estimated amounts for the current year. These estimated expenses reflect (i) the discontinuance of JHLICO's agreement to reimburse the Acquiring Fund for "other expenses" in 2003 that exceeded 0.10% of the Fund's average daily net assets and (ii) a reduction amounting to 0.20% in the custodial fees of the Acquiring Fund that became effective April 1, 2004. /C/ Other Expenses reflect the discontinuance of JHLICO's expense reimbursement and the reduction in custodial fees described in note /B/. 7 Examples: The following examples are intended to help shareholders compare the costs of investing in the Series I and Series II shares of the Acquired and Acquiring Funds. The example assumes that a shareholder invests $10,000 in the particular Fund for the time periods indicated and redeems all of the shares at the end of those periods. The example also assumes that a shareholder's investment has a 5% return each year and that each Fund's operating expense levels remain the same as those set forth in the expense table above.
MIT International JHVST International JHVST International Index Trust Equity Index Fund Equity Index Fund (Acquired Fund) (Acquiring Fund) (Acquiring Fund) (Estimated Expenses for Pro Forma the Current Year) (Assuming Reorganization) Series I Series II Series I Series II Series I Series II -------- --------- -------- --------- -------- --------- One Year $ 63 $ 84 $ 63 $ 84 $ 63 $ 84 Three Years $199 $ 262 $199 $ 262 $199 $ 262 Five Years $346 $ 455 $346 $ 455 $346 $ 455 Ten Years $774 $1,014 $774 $1,014 $774 $1,014
The examples assumes reinvestment of all dividends and distributions. The examples should not be considered a representation of future expenses of the Acquired or Acquiring Fund. Actual expenses may be greater or less than those shown. There can be no assurance that the foregoing pro forma expense ratios would have been the actual expense ratios for the Acquiring Fund had the Reorganization been consummated when assumed above, or that the pro forma expense ratios reflect the actual expense ratios that will be incurred by the Acquiring Fund if the Reorganization is consummated. The purpose of these tables is to assist shareholders in understanding the expenses an investor in the Funds will bear. Investment Management Fees Investment management fees as a percentage of average daily net assets. MIT International Index Trust (Acquired Fund) 0.40% on all assets. JHVST International Equity Index Fund 0.18% on the first $100 million; (Acquiring Fund) 0.15% on the next $100 million; and 0.11% on excess over $200 million.
MFC Global Investment Management (U.S.A.) Limited ("MFC Global") serves as the subadviser to the Acquired Fund and is responsible for managing the investment and reinvestment of the assets of the Acquired Fund. MFC Global formulates a continuous investment program for the Acquired Fund consistent with its investment objective and policies and implements the program by purchases and sales of securities. As compensation for its services, MFC Global receives a fee from MSS stated as an annual percentage of the current value of the net assets of the Acquired Fund. This fee is paid by MSS out of the management fee it receives for the Acquired Fund and is not an additional charge to the Acquired Fund. MFC Global is an indirect, wholly-owned subsidiary of MFC. SSgA Funds Management, Inc. ("SSgA") serves as the subadviser to the Acquiring Fund and has primary responsibility for making investment decisions for the Acquiring Fund's investment portfolios and placing orders with brokers and dealers to implement those decisions. SSgA receives compensation for these services from JHLICO, and the Acquiring Fund pays no sub-management fees over and above the management fees it pays to JHLICO. SSgA succeeded Independence Investments LLC as subadviser to the Acquiring Fund effective March 29, 2004. SSgA is a wholly-owned subsidiary of State Street Corporation, a publicly held bank holding corporation. Comparison of Principal Investment Risks In deciding whether to approve the Reorganization, you should consider the amount and character of investment risk involved in the respective investment objective and strategies of the Acquiring and Acquired Funds. Since both Funds are international index funds, they have substantially similar risks. These are described below, with certain differences noted. 8
- ----------------------------------------------------------------------------------------------------------- MIT INTERNATIONAL INDEX TRUST JHVST INTERNATIONAL EQUITY INDEX FUND (ACQUIRED FUND) (ACQUIRING FUND) - ----------------------------------------------------------------------------------------------------------- RISKS OF The Funds invest in foreign securities, which pose special risks due to: limited INVESTING IN government regulation (including less stringent investor protection and disclosure FOREIGN standards), lack of public information, exposure to possible economic, political and SECURITIES social instability,foreign currency rate fluctuations, and possible nationalization of a company's assets. Factors such as lack of liquidity, foreign ownership limits and restrictions on removing currency also pose special risks, and there may be problems, such as delays, associated with the settlement of securities transactions. All foreign securities have some degree of foreign risk. However, to the extent the Funds invest in emerging market countries, they will have a significantly higher degree of foreign risk than if they invested exclusively in developed or newly-industrialized countries. - ----------------------------------------------------------------------------------------------------------- The Fund's target index includes The Fund's target index includes companies companies representative of the market representative of the market structure of structure of developed countries in the developed and emerging market countries in Europe and Pacific Regions. the Americas (excluding the U.S.), Europe/Middle East and Asia/Pacific Regions. Because emerging markets are included, the Fund may have greater exposure to the risks of investing in such markets. - ----------------------------------------------------------------------------------------------------------- INDEX The Funds will reflect the performance of their target indices, even when the target MANAGEMENT indices do not perform well. In addition, fund transaction expenses, and the size and RISK timing of cash flows, may result in performance being different than that of the target index. - ----------------------------------------------------------------------------------------------------------- The subadviser's selection of The subadviser's selection of securities may securities both inside and outside the not be fully representative of the Fund's target index may cause the Fund's target index from time to time, particularly portfolio to track its target index less when the composition of the index changes. closely. - ----------------------------------------------------------------------------------------------------------- STOCK The value of the Funds' portfolio securities may go down in response to overall stock MARKET or bond market movements. Markets tend to move in cycles, with periods of rising prices RISK: and periods of falling prices. The value of equity securities purchased by the Funds could decline if the financial condition of the companies the Funds invest in decline or if overall market and economic conditions deteriorate. - ----------------------------------------------------------------------------------------------------------- INDEX The subadvisers and their strategies may fail to produce the intended results. Each Fund SUBADVISER could underperform its peers or lose money if its subadviser's investment strategy does RISK: not perform as expected. - ----------------------------------------------------------------------------------------------------------- The subadviser may be incorrect in selecting for investment companies that are not included in but that the subadviser believes as a group will behave in a manner similar to the target index. - ----------------------------------------------------------------------------------------------------------- OTHER A Fund's use of derivative instruments (such as futures contracts in the case of the RISKS: Acquired Fund and options, futures and swaps in the case of the Acquiring Fund) can produce disproportionate gains or losses. Derivatives are generally considered more risky than direct investments. Also, in a down market, derivatives could become harder to value or sell at a fair price. - -----------------------------------------------------------------------------------------------------------
The risks of investing in the Acquiring Fund are more fully described in the JHVST Prospectus and the Statement of Additional Information, which are incorporated herein by reference. The risks of investing in the Acquired Fund are more fully described in the MIT Prospectus, which is also incorporated herein by reference. See "Additional Information About the Funds," below. PERFORMANCE The following table sets forth, for the one-year period ended December 31, 2003 and the other periods indicated: (i) the annualized total return of the Series I and Series II shares of the Acquired Fund; (ii) the annualized total return of the NAV shares of the Acquiring Fund; and (iii) the pro forma annualized return for Series I and Series II shares of the Acquiring Fund, assuming that the Acquiring Fund, which commenced offering Series I and Series II on May 1, 2004 and will issue such shares in connection with the Reorganization, had shares of such classes outstanding during 2003 and the other periods indicated with the same fee arrangements that will be in place 9 upon the consummation of the Reorganization. The performance information in the table does not reflect fees and expenses of any variable contract which may use MIT or JHVST as its underlying investment medium. If such fees and expenses had been reflected, performance would be lower. The performance of each of the Funds in relation to its target index or indices is further discussed below in, respectively, Appendices A and B ("The Acquired Fund/The Acquiring Fund: Management's Discussion of Fund Performance") to this Proxy Statement/ Prospectus.
ONE FIVE TEN LIFE OF DATE FIRST FUND YEAR YEARS YEARS FUND AVAILABLE - ---- ---- ----- ----- ---- --------- MIT International Index Trust --Series I 32.18% NA NA (7.00%) 5/01/2000 (Acquired Fund) --Series II /A//B/ 32.12% NA NA 7.25% 1/28/2002 JHVST International Equity Index Fund /C/ --NAV 41.99% 0.74% 2.80% 5.58% 5/02/1988 (Acquiring Fund) (Pro forma) --Series I 41.59% 0.34% 2.40% 5.18% 5/01/2004 (Pro forma) --Series II/B/ 41.39% 0.14% 2.20% 4.98% 5/01/2004
- -------------------- /A/ Series II shares of the Acquired Fund were first offered January 28, 2002. /B/ For both the Acquired and Acquiring Funds, Series II performance will be lower than Series I performance due to a higher 12b-1 fee. /C/ From May 1998 through March 28, 2004, the subadviser to the Acquiring Fund was Independence Investment LLC. On November 1, 2003, the Acquiring Fund's benchmark was changed from a composite of 90% MSCI EAFE Index, a primarily GDP weighted index, and 10% MSCI EMF Index, to a market capitalization weighted index, the Morgan Stanley Capital International All Country World Free Excluding U.S. Index. Subsequently, that index's name was changed to The Morgan Stanley Capital International All Country Excluding U.S. ("MSCI ACWI ex US") Index. MULTIPLE CLASSES OF SHARES MIT is authorized to issue three classes of shares for the Acquired Fund and the other MIT Funds: Series I shares (formerly referred to as Class A shares), Series II shares (formerly referred to as Class B shares) and Series III shares. Series I, Series II and Series III shares are the same except for differences in class expenses, including different Rule 12b-1 fees, and voting rights. See "Rule 12b-1 Fees" below. The Acquired Fund currently has outstanding only Series I and Series II shares. JHVST is authorized to issue three classes of shares for the Acquiring Fund: NAV shares, Series I shares and Series II shares. NAV shares, Series I shares and Series II shares are the same except for differences in class expenses, including 12b-1 fees for the Series I and Series II shares, and voting rights. See "Rule 12b-1 Fees" below. The Acquiring Fund commenced offering Series I and Series II shares on May 1, 2004 and will issue shares of such classes in connection with the Reorganization. All shares of each of the Acquired Fund and the Acquiring Fund have equal voting rights and are voted in the aggregate, and not by class, except that shares of each class have exclusive voting rights on any matter submitted to shareholders that relates solely to the arrangement of that class and have separate voting rights when any matter is submitted to shareholders in which the interests of one class differ from the interests of any other class or when voting by class is otherwise required by law. RULE 12B-1 FEES Each of MIT and JHVST has adopted a Distribution Plan under Rule 12b-1 under the 1940 Act (each, a "12b-1 Plan") for the Series I and Series II shares of, respectively, the Acquired Fund and the Acquiring Fund. As described below, the Rule 12b-1 fees for the Acquiring Fund are higher than those for the Acquired Fund. Accordingly, if shareholders of the Acquired Fund approve the Reorganization, they will incur higher 12b-1 fees following the Reorganization. With respect to the Acquired Fund: Series I shares are subject to a Rule 12b-1 fee of up to .15% of Series I share average daily net assets, and Series II shares are subject to a Rule 12b-1 fee of up to .35% of Series II share average daily net assets. With respect to the Acquiring Fund: Series I shares are subject to a Rule 12b-1 fee of up to .40% of Series I share average daily net assets, and Series II shares are subject to a Rule 12b-1 fee of up to .60% of Series II share average daily net assets. 10 Under both the MIT and JHVST 12b-1 Plans, the Rule 12b-1 fees are paid to Manufacturers Financial Securities, LLC (the "Distributor"), which serves as the distributor both of shares of the MIT Funds, including the Acquired Fund, and of the Series I and Series II shares of the Acquiring Fund. To the extent consistent with applicable laws, regulations and rules, the Distributor may, under both 12b-1 Plans, use Rule 12b-1 fees: (i) for any expenses relating to the distribution of the shares of the class; (ii) for any expenses relating to shareholder or administrative services for holders of the shares of the class (or owners of variable contracts funded in insurance company separate accounts that invest in the shares of the class) and (iii) for the payment of "service fees" that come within Rule 2830(d)(5) of the Conduct Rules of the National Association of Securities Dealers, Inc. ("NASD"). Without limiting the foregoing, the Distributor may pay all or part of the Rule 12b-1 fees from a Fund to one or more affiliated and unaffiliated insurance companies that have issued variable insurance contracts for which the Fund serves as an investment vehicle as compensation for providing some or all of the types of services described in the preceding sentence; this provision, however, does not obligate the Distributor to make any payments of Rule 12b-1 fees and does not limit the use that the Distributor may make of the Rule 12b-1 fees it receives. Currently, all such payments relating to Series I and Series II shares of the Acquired Fund and the Acquiring Fund are made to insurance companies affiliated with MSS and the Distributor. However, payments may be made to unaffiliated insurance companies in the future. The JHVST 12b-1 Plan provides that if only part of any of the above-listed activities or expenses (or of any other expenses or activities) is intended to result in sales of (or services to) a class of the Acquiring Fund's shares, the Distributor may make a reasonable apportionment thereof, so as to apply Rule 12b-1 fees borne by that class to the portion of such activities or expenses that pertains to the distribution of (or services to) that class. Rule 12b-1 fees are paid out of a Fund's assets on an ongoing basis. Therefore, these fees will increase the cost of an investment in a Fund and may, over time, be greater than other types of sales charges. DIVIDENDS AND DISTRIBUTIONS The dividends and distributions procedures with respect to the Acquired and Acquiring Funds are substantially similar. MIT and JHVST declare as dividends substantially all of the net investment income, if any, of, the respective Funds. Dividends from the net investment income and the net capital gain, if any, for the Acquired Fund are declared by MIT not less frequently than annually and reinvested in additional full and fractional shares of the Acquired Fund at net asset value or paid in cash. JHVST declares and pays dividends monthly and declares capital gains distributions annually. JHVST automatically reinvests such dividends and distributions in additional full and fractional shares of the Acquiring Fund at net asset value. PURCHASE AND REDEMPTION OF SHARES The purchase and redemption procedures with respect to shares of the Acquired and Acquiring Funds are substantially the same. Series I and Series II shares of both Funds are offered continuously, without sales charge, and are sold and redeemed at their net asset value next computed after a purchase payment or redemption request is received from a contract owner. Depending upon the net asset value at that time, the amount paid upon redemption may be more or less than the cost of the shares redeemed. Payment for shares redeemed will generally be made within seven days. However, both MIT and JHVST may suspend the right of redemption or postpone the date of payment beyond seven days under certain circumstances as permitted by applicable law and regulations. Redemptions are normally made in cash, but JHVST reserves the right, at its discretion, to make full or partial payment by assignment to the appropriate separate account of portfolio securities at their value used in determining the redemption price. In such cases, the separate account would incur brokerage costs should it wish to liquidate these portfolio securities. Calculation of Net Asset Value. The net asset values of the shares of the Acquired and Acquiring Funds are determined once daily as of the close of the regular trading session of the New York Stock Exchange (the "Exchange") on each business day of the Funds. The Exchange generally closes at 4:00 p.m. Eastern Time. The net asset value per share of each share class of each Fund is computed by: (i) adding the sum of the 11 value of the portfolio securities held by the Fund, plus any cash or other assets it holds, attributable to the class, (ii) subtracting all its liabilities attributable to the class, and (iii) dividing the result by the total number of shares outstanding of the class at such time. Securities held by each of the Funds, except money market instruments with remaining maturities of 60 days or less which are valued on an amortized cost basis, are valued at their market value if market quotations are readily available. Otherwise, such securities are valued at fair value as determined in good faith by the MIT Board or its designee, in the case of the Acquired Fund, or by or under the direction of the Board of Trustees of JHVST (sometimes referred to herein as the "JHVST Board") in the case of the Acquiring Fund. Generally, with respect to the Acquired Fund, trading (i) in non-U.S. securities, (ii) U.S. Government Securities and (iii) money market instruments is substantially completed each day at various times prior to the close of regular trading of the Exchange. The values of such securities used in computing the net asset value of the Acquired Fund's shares are generally determined as of such times. Occasionally, events which affect the values of such securities may occur between the times at which they are generally determined and the close of the Exchange and would therefore not be reflected in the computation of the Fund's net asset value. In such event, these securities will then be valued at their fair value as determined in good faith by the MIT's Board or its designee. With respect to the Acquiring Fund, trading in securities on European and Far Eastern securities exchanges and over-the-counter markets is normally completed at various times before the close of business on each day on which the Exchange is open. The values of such securities used in computing net asset value per share are normally determined as of such times. Trading of these securities may not take place on every Exchange business day and may take place on days which are not business days in New York. JHVST calculates net asset value per share as of the close of regular trading on the Exchange on each day on which that exchange is open. Therefore, such calculation does not take place contemporaneously with the determination of the prices of many of the Acquiring Funds' securities used in such calculation. If events affecting the value of such securities occur between the time when their price is determined and the time as of which the Acquiring Fund's net asset value is calculated, such securities may be valued at fair value by or under the direction of the JHVST Board. TAX CONSEQUENCES No gain or loss will be recognized by the Acquired Fund or the Acquiring Fund, or by shareholders of the Acquired Fund, for federal income tax purposes as a result of the Reorganization. For further information about the tax consequences of the Reorganization, see "Information About the Reorganization -- Federal Income Tax Consequences," below. MASSACHUSETTS BUSINESS TRUSTS As stated above, each of MIT and JHVST is a Massachusetts business trust. As such, each is governed by the terms of its Declaration of Trust. Shareholders of MIT and JHVST have substantially similar voting and other rights. Neither MIT nor JHVST is required to hold an annual meeting of shareholders. Under Massachusetts law, shareholders of MIT and JHVST could, under certain circumstances, be held personally liable for the obligations of these respective business trusts. However, the Declarations of Trust of MIT and JHVST contain express disclaimers of shareholder liability for acts or obligations of the business trusts and require that notices of such disclaimers be given in each agreement, obligation, or instrument entered into or executed by the Trustees or any officers of the business trusts. The Declarations of Trust also provide for indemnification, out of the property of JHVST in the case of JHVST and out of the property of a particular MIT Fund in the case of MIT, for all losses and expenses of any shareholder held personally liable for the obligations of, respectively, JHVST or such MIT Fund. Both MIT and JHVST consider the risk of a shareholder incurring financial loss on account of shareholder liability to be remote. ADDITIONAL INFORMATION ABOUT THE FUNDS The following table shows where in the MIT Prospectus and the JHVST Prospectus additional information about, respectively, the Acquired Fund and the Acquiring Fund may be found. 12
TYPE OF INFORMATION HEADING OR CAPTION IN PROSPECTUS MIT PROSPECTUS JHVST PROSPECTUS -------------- ---------------- Investment Objective Investment Objective; Investment Goal and Strategy. and Policies: Strategies; Additional Investment Policies; Hedging and Other Strategic Transactions. Portfolio Subadviser and Portfolio Managers; Subadviser; Fund Managers. Management: Advisory Arrangements; Subadvisory Arrangements. Expenses: Fees and Expenses for Each Portfolio. Fees and Expenses of the Fund. Risks: Principal Risks; Risks of Investing Main Risks. in Certain Types of Securities. Taxes: Taxes. Dividends and Taxes. Dividends and Dividends. Dividends and Taxes. Distributions: Purchase and Redemption Purchase and Redemption of Shares. Investment in Shares of the of Shares: Funds; Share Price. Financial Highlights: Financial Highlights. Financial Highlights.
INFORMATION ABOUT THE REORGANIZATION AGREEMENT AND PLAN OF REORGANIZATION The following summary of the Plan is qualified in its entirety by reference to the form of the Plan attached hereto as Exhibit A. The Plan provides that the Acquiring Fund will acquire all of the assets, subject to all of the liabilities, of the Acquired Fund in exchange for shares of the Acquiring Fund. Subject to the satisfaction of the conditions described below, the acquisition will take place after the close of business on June 18, 2004 or on such later date as may be determined by MIT and JHVST (the "Exchange Date"). The net asset value per share of the Series I and Series II shares of the Acquired Fund and the Acquiring Fund will be determined by dividing each Fund's assets, less liabilities, attributable to each share class, by the total number of outstanding shares of that class. The assets of each Fund will be valued in accordance with the valuation practices of that Fund. The number of full and fractional shares of the Acquiring Fund received by a shareholder of the Acquired Fund will be equal in value to the value of the shareholder's full and fractional shares of the Acquired Fund as of the close of regularly scheduled trading on the New York Stock Exchange on the Exchange Date. As of the Effective Time of the Reorganization, the Acquired Fund will liquidate and distribute pro rata to its shareholders of record as of the close of regularly scheduled trading on the New York Stock Exchange on the Exchange Date the shares of the Acquiring Fund received by the Acquired Fund in the Reorganization. The holders of Series I and Series II shares of the Acquired Fund will receive, respectively, Series I and Series II shares of the Acquiring Fund. Such liquidation and distribution will be accomplished by the establishment of accounts on the share records of the Acquiring Fund in the names of the shareholders of the Acquired Fund, each account representing the respective pro rata number of shares of the Acquiring Fund due the shareholder. After such distribution, MIT will take all necessary steps under Massachusetts law, its Declaration of Trust and any other applicable law to effect a complete dissolution of the Acquired Fund. The MIT Board has determined that the interests of shareholders of and contract owners whose contract 13 values are invested in shares of the Acquired Fund will not be diluted as a result of the Reorganization and that participation in the Reorganization is in the best interests of the Acquired Fund and such shareholders and contract owners. Similarly, the JHVST Board has determined the Reorganization is in the best interests of the Acquiring Fund and of its shareholders and contract owners whose contract values are invested in shares of the Acquiring Fund and that the interests of such shareholders and contract owners will not be diluted as a result of the Reorganization. The consummation of the Reorganization is subject to the conditions set forth in the Plan, including that the affirmative vote of the holders of at least a Majority of the Outstanding Voting Securities (as defined under "Voting Information" below) of the Acquired Fund entitled to vote approve the Reorganization. The Plan may be terminated and the Reorganization abandoned at any time prior to the Effective Time of the Reorganization by mutual agreement of MIT on behalf of the Acquired Fund and JHVST on behalf of the Acquiring Fund, and by MIT on behalf of the Acquired Fund or JHVST on behalf of the Acquiring Fund in the event of: (i) a breach by the other party or such Fund of any material representation, warranty, covenant or agreement in the Plan to be performed prior to the Effective Time of the Reorganization; (ii) a failure by the other party or such Fund to fulfill a material condition precedent to the obligations of the terminating party which has not been waived by the terminating party; or (iii) a resolution by the MIT Board or the JHVST Board, upon a determination made in good faith, that proceeding with this Plan is not in the best interests of, respectively, the Acquired Fund, its shareholders and contract owners whose contracts are funded by shares of the Acquired Fund or the Acquiring Fund, its shareholders and contract owners whose contracts are funded by shares of the Acquiring Fund. The Plan provides that MIT on behalf of the Acquired Fund and JHVST on behalf of the Acquiring Fund may waive compliance with any of the covenants or conditions made therein for the benefit of the waiving party, except for certain conditions regarding the receipt of regulatory approvals. Certain of the existing investment limitations of the Acquired Fund that require shareholder approval for amendment prohibit the Acquired Fund from engaging in activities such as investing more than a stated percentage of its assets in an issuer's securities. By approving the Plan, the shareholders of the Acquired Fund will be deemed to have agreed to waive any such limitations solely insofar as they might be deemed to apply to the Reorganization. The expenses of the Reorganization (other than any registration fees payable for the registration of shares of the Acquiring Fund in connection with the Reorganization, which will be payable by the Acquiring Fund) will be borne by the Acquired Fund and the Acquiring Fund in equal shares. See "Voting Information" below. If the Plan is not approved by the shareholders of the Acquired Fund or is not consummated for any other reason, the MIT Board will consider other possible courses of action. See "Voting Information." THE MIT BOARD, INCLUDING ALL THE INDEPENDENT TRUSTEES, RECOMMENDS THAT SHAREHOLDERS APPROVE THE PLAN UNDER PROPOSAL 1. REASONS FOR THE REORGANIZATION The principal purpose of the Reorganization is to provide a means by which shareholders of and contract owners participating in the Acquired Fund, in combination with the Acquiring Fund, may pursue substantially similar investment objectives and policies in the context of a larger fund which has shown better prospects for growth and demonstrated stronger performance in tracking its target indices. In determining whether to approve the Reorganization and recommend its approval to shareholders, the MIT Board (including the Independent Trustees (with the advice and assistance of independent legal counsel)), made an inquiry into a number of matters and considered the following factors, among others: (1) the compatibility of the investment objectives, policies and restrictions of the Acquired and Acquiring Funds; (2) the current and historical performance of the Acquired and Acquiring Funds; (3) the advantages to the Acquired Fund of investing in a larger asset pool with potentially greater diversification; (4) the possible benefits of a larger asset base to portfolio management of the Acquiring Fund; (5) expense ratios and available information regarding the fees and expenses of the Acquired and Acquiring Funds (historical and pro forma), as well as of similar funds; (6) the investment experience, expertise and resources of the respective subadvisers to the Acquired and Acquiring Funds; (7) the terms and conditions of the Reorganization and whether the Reorganization would result in dilution of shareholder or contract owner interests; (8) any direct and indirect costs to be incurred by the Acquired and Acquiring Funds as a result of the Reorganization; (8) the tax consequences of the Reorganization; and (9) possible alternatives to the Reorganization. 14 In reaching the decision to recommend approval of the Reorganization, the MIT Board concluded that the participation of the Acquired Fund in the Reorganization is in the best interests of the Acquired Fund, as well as the best interests of its shareholders and participating contract owners, and that the interests of existing shareholders and contract owners will not be diluted as a result of the Reorganization. The MIT Board's conclusion was based on a number of factors, including the following: 1. The investment objective, strategies and risks of the Acquiring Fund are substantially similar to those of the Acquired Fund and will afford shareholders of the Acquired Fund continuity of investment objectives and expectations. 2. As indicated by its historic performance and ability to attract investors, the Acquired Fund has better prospects for growth than the Acquired Fund. 3. The Acquiring Fund has historically out-performed the Acquired Fund in more closely tracking its target indices. 4. The somewhat higher expense ratios of the Acquiring Fund than the Acquired Fund (giving effect to certain voluntary expense reimbursements) were viewed in light of the competitive level of the advisory fees and the prospects for growth of the Acquiring Fund. 5. The Reorganization will permit shareholders of the Acquired Fund to pursue their investment goals in the context of a larger fund immediately following consummation of the Reorganization. It is anticipated that the combined Acquired and Acquiring Funds should enhance the ability of portfolio managers in structuring the portfolio to be representative of the Acquiring Fund's target index. DESCRIPTION OF THE SECURITIES TO BE ISSUED Shareholders of the Acquired Fund will receive Series I or Series II shares of the Acquiring Fund in accordance with the procedures set forth in the Plan as described above. Each such share when issued will be fully paid and non-assessable (except as noted under "Summary - Massachusetts Business Trusts," above) and will have no preemptive, exchange or similar rights. Such shares do not have cumulative voting rights. The shares of beneficial interest of JHVST currently are divided into 30 series, each corresponding to one of the JHVST Funds. JHVST has the right to establish additional series and issue additional shares without the consent of its shareholders. If the holders of variable contracts show minimal interest in a JHVST Fund, the JHVST Board, by majority vote, may eliminate that Fund or substitute shares of another investment company. Any such action by the JHVST Board would be subject to compliance with the requirements for governmental approvals or exemptions or for shareholder approval. The holders of variable contracts participating in any such Fund will be notified in writing of JHVST's intention to eliminate such Fund and given 30 days to transfer amounts from such Fund to other JHVST Funds without incurring any transaction fee. Amounts not transferred or withdrawn would automatically be transferred, at the discretion of the Fund's management. As discussed above, the Acquiring Fund may issue three classes of shares: NAV shares, Series I shares and Series II shares. Additional classes may be offered in the future. The Acquiring Fund commenced offering Series I and Series II shares on May 1, 2004 and will issue shares of such classes in connection with the Reorganization. The relative rights and preferences of the three classes are prescribed in, among other things, a plan that JHVST has adopted under Rule 18f-3 (the "Rule 18f-3 Plan") under the 1940 Act. Each issued and outstanding share of the Acquiring Fund is entitled to participate equally as provided in the Rule 18f-3 Plan in dividends and distributions declared with respect to the Acquiring Fund and upon liquidation or dissolution in the net assets of the Fund remaining after satisfaction of outstanding liabilities. Expenses of the Acquiring Fund are borne by NAV, Series I and Series II shares based on the net assets of 15 the Fund attributable to shares of each class. Notwithstanding the foregoing, "class expenses" will be allocated to each class. "Class expenses" for the Acquiring Fund include the 12b-1 fees paid with respect to a class and any other expenses which are properly allocable to a particular class under the terms of the Rule 18f-3 Plan. FEDERAL INCOME TAX CONSEQUENCES. As a condition to the consummation of the Reorganization, each of MIT and JHVST will have received, in form and substance satisfactory to each, an opinion from Dykema Gossett PLLC, tax counsel to MIT in connection with the Reorganization, to the effect that, based on the facts and assumptions stated therein, for federal income tax purposes: (1) the Reorganization will constitute a reorganization within the meaning of Section 368(a)(1) of the Code with respect to the Acquired Fund and the Acquiring Fund; (2) no gain or loss will be recognized by the Acquired Fund or the Acquiring Fund upon the transfer of all of the assets and liabilities, if any, of the Acquired Fund to the Acquiring Fund solely in exchange for shares of the Acquiring Fund; (3) no gain or loss will be recognized by shareholders of the Acquired Fund upon the exchange of such Fund's shares solely for shares of the Acquiring Fund; (4) the holding period and tax basis of the shares of the Acquiring Fund received by each holder of shares of the Acquired Fund pursuant to the Reorganization will be the same as the holding period and tax basis of the shares of the Acquired Fund held by the shareholder (provided the shares of the Acquired Fund were held as a capital asset on the date of the Reorganization) immediately prior to the Reorganization; and (5) the holding period and tax basis of the assets of the Acquired Fund acquired by the Acquiring Fund will be the same as the holding period and tax basis of those assets to the Acquired Fund immediately prior to the Reorganization. CAPITALIZATION The following table shows the capitalization of the Acquired Fund and the Acquiring Fund as of December 31, 2003, and the pro forma combined capitalization of the Acquiring Fund as if the Reorganization had occurred as of that date. As of December 31, 2003, the Acquired Fund had outstanding three classes of shares: Series I, Series II and Series III shares; at the time of the Reorganization, it will have outstanding only two classes of shares: Series I and Series II shares. As of December 31, 2003, the Acquiring Fund had outstanding only one class of shares: NAV shares; it commenced offering Series I and Series II shares on May 1, 2004 and will issue shares of such classes in connection with the Reorganization. In addition, the pro forma net asset figures reflect the anticipated withdrawal of Manulife U.S.A.'s initial investment in the Acquired Fund ("seed capital") prior to the Exchange Date of the Reorganization.
NET ASSETS NET ASSET SHARES FUND (000'S Omitted) VALUE PER SHARE OUTSTANDING ---- --------------- --------------- ----------- MIT International Index Trust (Acquired Fund) --Series I shares $ 82,197 $ 9.08 9,056,146 --Series II shares 17,176 9.08 1,891,609 --Series III shares/A/ 3 9.08 374 JHVST International Equity Index Fund (Acquiring Fund) --NAV shares 159,036 13.82 11,508,157 --Series I shares -- -- -- --Series II shares -- -- -- PRO FORMA/B/ JHVST International Equity Index Fund (Acquiring Fund) --NAV shares 159,036 13.82 11,508,157 --Series I shares 82,197 13.82 5,947,684 --Series II shares 17,179 13.82 1,243,084
------------- /A/ [The Series III shares were all redeemed prior to the record date for The Special Meeting of Shareholders to vote on the Reorganization.] /B/ The pro-forma figures for net assets and net asset values per share do not reflect expenses of the Reorganization estimated to be $75,000 for each of the Funds; and the pro-forma figures for net assets do not reflect Manulife U.S.A.'s anticipated withdrawal of seed capital in the amount of $__________ at December 31, 2003 from the Acquired Fund prior to the Exchange Date of the Reorganization. 16 VOTING INFORMATION MIT sells its shares not directly to the public but generally only to insurance companies and their separate accounts as the underlying investment media for variable contracts, certain entities affiliated with the insurance companies and, with respect to certain MIT Funds, trustees of qualified pension and retirement plans. Only shares of a particular MIT Fund are entitled to vote on matters which affect only the interests of that Fund. As of the Record Date for the Special Meeting of Shareholders, the shares of the Acquired Fund were legally owned by The Manufacturers Life Insurance Company (U.S.A.) ("Manulife U.S.A") and The Manufacturers Life Insurance Company of New York ("Manulife New York"). Each of Manulife U.S.A. and Manulife New York is an indirect, wholly-owned subsidiary of The Manufacturers Life Insurance Company ("Manulife"). MFC is the holding company of Manulife and its subsidiaries, collectively known as Manulife Financial. The principal offices of Manulife Financial are located at 200 Bloor Street East, Toronto, Ontario, Canada M4W1E5. Manulife U.S.A. is a stock life insurance company originally organized under the laws of Pennsylvania and redomesticated under the laws of Michigan. Its principal address is 200 Bloor Street East, Toronto, Ontario, Canada M4W 1E5. Manulife New York is a stock life insurance company organized under the laws of New York whose principal address is 100 Summit Lake Drive, Second Floor, Valhalla, New York 10595. Each of Manulife U.S.A. and Manulife New York holds shares of MIT Funds directly and attributable to variable contracts in their separate accounts. Such separate accounts include separate accounts registered under the 1940 Act as well as unregistered separate accounts. Shareholder Voting. Manulife U.S.A. and Manulife New York have the right to vote upon matters that may be voted upon at a special shareholders' meeting. These companies will vote all shares of the MIT Funds issued to them in proportion to the timely instructions received from contract owners participating in the separate accounts described above which are registered under the 1940 Act. Manulife U.S.A. and Manulife New York, in connection with their solicitation of voting instructions, are furnishing this Proxy Statement/Prospectus to the owners of variable contracts participating in registered separate accounts holding shares of the Acquired Fund to be voted at the Meeting. VOTING INFORMATION Proxies may be revoked at any time prior to the voting of the shares represented thereby by: (i) mailing written instructions addressed to the Secretary of MIT at 73 Tremont Street, Boston, Massachusetts 02108, or (ii) signing and returning a new proxy, in each case if received by MIT by June 17, 2004. ALL VALID PROXIES WILL BE VOTED IN ACCORDANCE WITH SPECIFICATIONS THEREON, OR IN THE ABSENCE OF SPECIFICATIONS, FOR APPROVAL OF PROPOSAL 1. Quorum; Definition of a Majority of Outstanding Voting Securities. Shareholders of record at the close of business on April 20, 2004 (the "Record Date") will be entitled to vote at the Meeting or any adjournment of the Meeting. The holders of 30% of the shares outstanding of the Acquired Fund at the close of business on that date present in person or by proxy will constitute a quorum for the Meeting; however, a majority of the outstanding voting securities of the Acquired Fund entitled to vote at the close of business on that date is required to approve the Proposal, except as noted herein. As used in this Proxy Statement/Prospectus, the vote of a "Majority of the Outstanding Voting Securities" means the affirmative vote of the lesser of: (1) 67% or more of the voting securities of MIT or an MIT Fund, as applicable, present at the Meeting, if the holders of more than 50% of the outstanding voting securities of MIT or an MIT Fund, as applicable, are present in person or by proxy or (2) more than 50% of the outstanding voting securities of MIT or an MIT Fund, as applicable. Shareholders are entitled to one vote for each Series I and Series II share held and fractional votes for fractional shares held. No shares have cumulative voting rights. In the event the necessary quorum to transact business or the vote required to approve the Reorganization under Proposal 1 is not obtained at the Meeting, the persons named as proxies may propose one or more adjournments of the Meeting in accordance with applicable law to permit further solicitation of proxies. Any such 17 adjournment as to a matter will require the affirmative vote of the holders of a majority of MIT's (or the relevant MIT Fund's) shares cast at the Meeting. The persons named as proxies will vote for or against any adjournment in their discretion. Abstentions. Abstentions are counted as shares eligible to vote at the Meeting in determining whether a quorum is present, but do not count as votes cast with respect to a Proposal. Under the 1940 Act, the affirmative vote necessary to approve a matter under consideration may be determined with reference to a percentage of votes present at the Meeting, which would have the effect of treating abstentions as if they were votes against a proposal. Cost of Preparation and Distribution of Proxy Materials. The cost of the preparation and distribution of these proxy materials will be borne by the Acquired Fund and the Acquiring Fund in equal shares. In addition to the solicitation of proxies by the use of the mails, proxies may be solicited by officers and employees of the MIT, MIT's investment adviser, MSS, or its agents or affiliates, personally or by telephone. Brokerage houses, banks and other fiduciaries may be requested by the Funds to forward soliciting materials to their principals and to obtain authorization for the execution of proxies. For those services, they will be reimbursed by the Funds for their out-of-pocket expenses. Fund Voting. Series I and Series II shares of the Acquired Fund will vote in the aggregate and not by class on the matters to be presented at the Meeting. As of the Record Date, the number of votes eligible to be cast at the Meeting with respect to the Acquired Fund is as follows:
NUMBER OF VOTES HELD BY VOTES HELD BY ACQUIRED FUND ELIGIBLE VOTES MANULIFE U.S.A. MANULIFE NEW YORK ------------------------------------------------------------------------------------------------- MIT International Index Trust
OWNERSHIP OF SHARES OF THE FUNDS Acquired Fund. As of the Record Date, the percentage ownership of the outstanding shares of the Acquired Fund by Manulife U.S.A. and Manulife New York is stated below:
NUMBER OF PERCENTAGE OF PERCENTAGE OF OUTSTANDING SHARES HELD BY SHARES HELD BY ACQUIRED FUND SHARES MANULIFE U.S.A. MANULIFE NEW YORK ------------------------------------------------------------------------------------------------- MIT International Index Trust
As of the Record Date, Trustees and officers of MIT, in the aggregate, beneficially owned or had the right to provide voting instructions for less than 1% of the outstanding shares of the Acquired Fund. As of the Record Date, the following variable contract owners beneficially owned 5% or more of the outstanding shares of the Acquired Fund: NUMBER PERCENTAGE NAME AND ADDRESS OF SHARES OWNERSHIP ---------------- --------- --------- Acquiring Fund. As with shares of the MIT Funds, shares of the JHVST Funds are not sold directly to the public but generally only to insurance companies and their separate accounts as the underlying investment media for variable contracts. As of the Record Date, the shares of the Acquiring Fund were legally owned by John Hancock Life Insurance Company ("JHLICO"), a Massachusetts life insurance company having its principal offices at 200 Clarendon Street, Boston, Massachusetts 02117, and John Hancock Variable Life Insurance Company 18 ("JHVLICO"), a Massachusetts life insurance company having its principal offices at 197 Clarendon Street, Boston, Massachusetts 02117. The percentage ownership of the outstanding shares of the Acquiring Fund as of the Record Date by JHLICO and JHVLICO is stated below:
Number of Percentage of Percentage of Outstanding Shares held by Shares held by Acquiring Fund Shares JHLICO JHVLICO ------------------------------------------------------------------------------------------- JHVST International Equity Index Fund
As of the Record Date, no variable contract owner beneficially owned 5% or more of the outstanding shares of the Acquiring Fund, and fewer than 1% of the outstanding shares of the Acquiring Fund were attributable to variable contracts owned by Trustees or officers of JHVST. FINANCIAL STATEMENTS The financial highlights of the Acquired Fund for the fiscal year ended December 31, 2003 incorporated by reference into this Proxy Statement/Prospectus, and the financial statements of MIT for the fiscal year ended December 31, 2003 incorporated by reference into the related Statement of Additional Information, have been so incorporated by reference in reliance on the report of PricewaterhouseCoopers, LLP, independent accountants. The financial highlights of the Acquiring Fund for the fiscal year ended December 31, 2003 incorporated by reference into this Proxy Statement/Prospectus, and the financial statements of JHVST for the fiscal year ended December 31, 2003 incorporated by reference into the related Statement of Additional Information, have been so incorporated by reference in reliance on the report of Ernst & Young LLP, independent auditors. The performance information included in the financial highlights of the Funds does not reflect fees and expenses of any variable insurance contract which may use MIT or JHVST as its underlying investment medium. If such fees and expenses had been reflected, performance would be lower. LEGAL MATTERS Certain matters concerning the issuance of shares of the Acquiring Fund will be passed upon by Ronald J. Bocage, Esq., Vice President and Counsel, JHLICO, P.O. Box 111, Boston, Massachusetts 02117. Certain tax consequences of the Reorganization will be passed upon by Dykema Gossett PLLC, 39577 Woodward Avenue, Suite 300, Bloomfield Hills, Michigan 48304. 19 OTHER MATTERS The MIT Board does not know of any matters to be presented at the Meeting other than those mentioned in this Proxy Statement/Prospectus. If any other matters properly come before the Meeting, the shares represented by proxies will be voted in accordance with the best judgment of the person or persons voting the proxies. MIT is not required to hold annual meetings of shareholders and, therefore, it cannot be determined when the next meeting of shareholders will be held. Shareholder proposals to be presented at any future meeting of shareholders of MIT must be received by MIT a reasonable time before its solicitation of proxies for that meeting in order for such proposals to be considered for inclusion in the proxy materials related to that meeting. BY ORDER OF THE BOARD OF TRUSTEES OF MIT May __, 2004 Boston, Massachusetts It is important that proxies be returned promptly. Therefore, shareholders who do not expect to attend the meeting in person are urged to complete, sign, date and return the proxy card in the enclosed envelope. 20 EXHIBIT A AGREEMENT AND PLAN OF REORGANIZATION THIS AGREEMENT AND PLAN OF REORGANIZATION (the "Plan") is made this ___ day of _______, 2004, by and between Manufacturers Investment Trust ("MIT"), a Massachusetts business trust with its principal place of business at 73 Tremont Street, Boston, Massachusetts 02108, on behalf of its separate series, the International Index Trust (the "Acquired Fund"), and John Hancock Variable Series Trust I ("JHVST"), a Massachusetts business trust with its principal place of business at John Hancock Place, P.O. Box 111, Boston, Massachusetts 02117, on behalf of its separate series, the International Equity Index Fund (the "Acquiring Fund"). The Acquired Fund and the Acquiring Fund are sometimes referred to herein collectively as the "Funds" and individually as a "Fund." WHEREAS, the respective Boards of Trustees of MIT and JHVST have determined that the transfer of all of the assets and liabilities of the Acquired Fund to the Acquiring Fund is in the best interests of that Board's respective Fund, as well as the best interests of shareholders and owners of variable life and annuity contracts funded by shares of such Fund, and that the interests of existing shareholders and contract owners participating in such Fund would not be diluted as a result of this transaction; WHEREAS, MIT and JHVST intend to provide for the reorganization of the Acquired Fund (the "Reorganization") through the acquisition by the Acquiring Fund of all of the assets, subject to all of the liabilities, of the Acquired Fund in exchange for Series I and Series II shares of beneficial interest of the Acquiring Fund (the "Acquiring Fund Shares"), the liquidation of the Acquired Fund and the distribution to Acquired Fund shareholders of the Acquiring Fund Shares; NOW, THEREFORE, in consideration of the mutual promises herein contained, MIT and JHVST agree as follows: 1. TRANSFER OF ASSETS OF THE ACQUIRED FUND IN EXCHANGE FOR THE ACQUIRING FUND SHARES AND LIQUIDATION OF THE ACQUIRED FUND (a) Plan of Reorganization. (i) As of the Effective Time of the Reorganization (as defined in Section 1(b)(i) hereof), MIT, on behalf of the Acquired Fund, will convey, transfer and deliver to the Acquired Fund all of the then existing assets of the Acquired Fund (consisting, without limitation, of portfolio securities and instruments, dividend and interest receivables, cash and other assets). In consideration thereof, JHVST, on behalf of the Acquiring Fund, will (A) assume and pay, to the extent that they exist on or after the Effective Time of the Reorganization, all of the obligations and liabilities of the Acquired Fund and (B) issue and deliver to the Acquired Fund that number of full and fractional Series I and Series II shares of the Acquiring Fund as determined in Section 1(c) hereof. Any Series I and Series II shares of capital stock (if any) of the Acquired Fund ("Acquired Fund Shares") held in the treasury of MIT at the Effective Time of the Reorganization shall thereupon be retired. Such transactions shall take place on the date provided for in Section 1(b) hereof (the "Exchange Date"). All computations for the Acquired Fund and the Acquiring Fund shall be performed by State Street Bank and Trust Company (the "Custodian"), as custodian and pricing agent for the Acquired Fund and the Acquiring Fund, subject to the control and direction of each Fund and its Board and in accordance with the usual pricing and valuation procedures of the respective Funds. The parties agree to communicate with one another sufficiently in advance concerning the nature and manner of valuation of all their respective assets and liabilities that any material differences in the value ascribed by each Fund to any assets or liabilities that the Acquiring Fund would assume in the Reorganization can be reconciled prior to the Exchange Date. The parties agree to attempt in good faith to reconcile any such material differences. In the absence of such reconciliation, the determination of the Custodian shall be conclusive and binding on all parties in interest. (ii) As of the Effective Time of the Reorganization, the Acquired Fund will liquidate and distribute pro rata to its shareholders of record ("Acquired Fund shareholders") as of the Effective Time of the Reorganization the Acquiring Fund Shares received by the Acquired Fund pursuant to Section 1(a)(i) in actual or constructive exchange for the shares of the Acquired Fund held by the Acquired Fund shareholders. The holders of Series I and Series II shares of 21 the Acquired Fund will receive, respectively, Series I and Series II shares of the Acquiring Fund. Such liquidation and distribution will be accomplished by the transfer of the Acquiring Fund Shares then credited to the account of the Acquired Fund on the books of the Acquiring Fund to open accounts on the share records of the Acquiring Fund in the names of the Acquired Fund shareholders and representing the respective pro-rata number of the Acquiring Fund Shares due such shareholders. The Acquiring Fund will not issue certificates representing the Acquiring Fund Shares in connection with such exchange. (iii) As soon as practicable after the Effective Time of the Reorganization, MIT shall take all the necessary steps under Massachusetts law, its Declaration of Trust and any other applicable law to effect a complete dissolution of the Acquired Fund. Any reporting of the Acquired Fund, including but not limited to the responsibility for filing of reports with the Securities and Exchange Commission (the "Commission"), other regulatory reports and tax returns, is and shall remain the responsibility of MIT. (b) Exchange Date and Effective Time of the Reorganization. (i) Subject to the satisfaction of the conditions to the Reorganization specified in this Plan, the Reorganization shall occur as of the close of regularly scheduled trading on the New York Stock Exchange (the "Effective Time of the Reorganization") on the day (the "Exchange Date") which is the later of (A) the final adjournment of the meeting of the holders of Acquired Fund Shares at which this Plan will be considered, (B) immediately after the close of business on June 18, 2004 and (C) such later day as MIT and JHVST may determine. (ii) All acts taking place on the Exchange Date shall be deemed to take place simultaneously as of the Effective Time of the Reorganization unless otherwise provided. (iii) In the event that on the proposed Exchange Date (A) the New York Stock Exchange shall be closed to trading or trading thereon shall be restricted, or (B) trading or the reporting of trading on said Exchange or elsewhere shall be disrupted so that accurate valuation of the net assets of the Acquiring Fund or the Acquired Fund is impracticable, the Exchange Date shall be postponed until the first business day after the day when trading shall have been fully resumed and reporting shall have been restored. (iv) On the Exchange Date, portfolio securities of the Acquired Fund that are not held in book-entry form shall be transferred by the Custodian to the account of the Acquiring Fund duly endorsed in proper form for transfer, in such condition as to constitute good delivery thereof in accordance with the custom of brokers, and shall be accompanied by all necessary federal and state stock transfer stamps or a check for the appropriate purchase price thereof; portfolio securities held of record by the Custodian in book-entry form on behalf of the Acquired Fund shall be delivered to the Acquiring Fund by the Custodian's recording the transfer of beneficial ownership thereof on its records; and cash delivered shall be in the form of currency or by the Custodian's crediting the Acquiring Fund's account maintained with the Custodian with immediately available funds. (c) Valuation. (i) The net asset value per share of the Series I and Series II shares of the Acquiring Fund and the net value of the assets of the Acquired Fund to be transferred in exchange for such Series I and Series II shares shall be determined as of the Effective Time of the Reorganization. The net asset value per share of the Series I and Series II shares of the Acquiring Fund shall be computed by the Custodian in the manner set forth in JHVST's Declaration of Trust or By-laws and then current prospectus and statement of additional information and shall be computed to not less than four decimal places. The net value of the assets of the Acquired Fund to be transferred shall be computed by the Custodian by calculating the value of the assets of the Acquired Fund and by subtracting therefrom the amount of the liabilities assigned and transferred to the Acquiring Fund, said assets and liabilities to be valued in the manner set forth in MIT's Declaration of Trust or By-laws and then current prospectus and statement of additional information. (ii) The number of Series I and Series II shares of the Acquiring Fund to be issued (including fractional shares, if any) by the Acquiring Fund in exchange for the Acquired Fund's assets shall be determined by dividing the net value of the assets of the Acquired Fund attributable to shares of each class and to be transferred by the net asset 22 value per shares of the Series I and Series II shares of the Acquiring Fund, both as determined in accordance with Section 1(c)(i). (iii) All computations of value shall be made by the Custodian in the manner set forth in paragraphs (a)(i) and (c)(i) above. 2. REPRESENTATIONS AND WARRANTIES OF JHVST ON BEHALF OF THE ACQUIRING FUND JHVST on behalf of the Acquiring Fund represents and warrants as follows: (a) Organization, Existence, etc. JHVST is a business trust that is duly organized, validly existing and in good standing under the laws of the Commonwealth of Massachusetts and has the power to carry on its business as it is now being conducted. The Acquiring Fund is a validly existing series of shares of such business trust representing interests in a separate portfolio thereof under the laws of Massachusetts. Each of the Acquiring Fund and JHVST has all necessary federal, state and local authorization to own all of its properties and assets and to carry on its business as now being conducted. (b) Registration as Investment Company. JHVST is registered under the Investment Company Act of 1940, as amended (the "Act") as an open-end investment company of the management type; such registration has not been revoked or rescinded and is in full force and effect. (c) Current Offering Documents. The current prospectus of JHVST dated May 1, 2003 and the current statement of additional information of JHVST dated May 1, 2003, each as supplemented or amended and as may be further supplemented or amended, included in JHVST's registration statement on Form N-1A filed with the Commission, comply in all material respects with the requirements of the Securities Act of 1933, as amended (the "Securities Act") and the Act and do not contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (d) Capitalization. JHVST has an unlimited number of authorized shares of beneficial interest of which as of March ___, 2004 there were outstanding the following numbers of shares of the Acquiring Fund: __________ NAV shares. All of the outstanding shares of JHVST have been duly authorized and are validly issued, fully paid and non-assessable (recognizing that under Massachusetts law, shareholders of a JHVST series could, under certain circumstances, be held personally liable for the obligations of JHVST). Because JHVST is an open-end investment company engaged in the continuous offering and redemption of its shares, the number of outstanding shares may change prior to the Effective Time of the Reorganization. All of the issued and outstanding shares of the Acquiring Fund have been offered and sold in compliance in all material respects with applicable registration requirements of the Securities Act and any applicable state securities laws. (e) Financial Statements. The financial statements of JHVST for the fiscal year ended December 31, 2003, which have been audited by Ernst & Young LLP, fairly present the financial position of the Acquiring Fund as of the dates thereof and the respective results of operations and changes in net assets for each of the periods indicated in accordance with generally accepted accounting principles ("GAAP"). (f) Shares to be Issued Upon Reorganization. The Acquiring Fund Shares to be issued in connection with the Reorganization will be duly authorized and upon consummation of the Reorganization will be validly issued, fully paid and non-assessable (except as disclosed in JHVST's prospectus and recognizing that under Massachusetts law, shareholders of a JHVST series could, under certain circumstances, be held personally liable for the obligations of such series). (g) Authority Relative to this Plan. JHVST, on behalf of the Acquiring Fund, has the power to enter into this Plan and to carry out its obligations hereunder. The execution and delivery of this Plan and the consummation of the transactions contemplated hereby have been duly authorized by JHVST's Board of Trustees and no other proceedings by JHVST other than those contemplated under this Plan are necessary to authorize its officers to effectuate this Plan and the transactions contemplated hereby. JHVST is not a party to or obligated under any provision of its Declaration of Trust or By-laws, or under any indenture or contract provision or any other 23 commitment or obligation, or subject to any order or decree, which would be violated by or which would prevent its execution and performance of this Plan in accordance with its terms. (h) Liabilities. There are no liabilities of the Acquiring Fund, whether actual or contingent and whether or not determined or determinable, other than liabilities disclosed or provided for in JHVST's Financial Statements with respect to the Acquiring Fund and liabilities incurred in the ordinary course of business subsequent to December 31, 2003 or otherwise previously disclosed to and accepted by MIT with respect to the Acquiring Fund, none of which has been materially adverse to the business, assets or results of operations of the Acquiring Fund. (i) No Material Adverse Change. Since December 31, 2003, there has been no material adverse change in the financial condition, results of operations, business, properties or assets of the Acquiring Fund, other than those occurring in the ordinary course of business (for these purposes, a decline in net asset value and a decline in net assets due to redemptions do not constitute a material adverse change). (j) Litigation. There are no claims, actions, suits or proceedings pending or, to the knowledge of JHVST, threatened which would adversely affect JHVST or the Acquiring Fund's assets or business or which would prevent or hinder consummation of the transactions contemplated hereby, there are no facts which would form the basis for the institution of administrative proceedings against JHVST or the Acquiring Fund and, to the knowledge of JHVST, there are no regulatory investigations of JHVST or the Acquiring Fund, pending or threatened, other than routine inspections and audits. (k) Contracts. No default exists under any material contract or other commitment to which JHVST, on behalf of the Acquiring Fund, is subject. (l) Taxes. All federal and other income tax returns of JHVST with respect to the Acquiring Fund required to be filed by JHVST with respect to the Acquiring Fund have been filed for all taxable years to and including December 31, 2003, and all taxes payable pursuant to such returns have been paid. To the knowledge of JHVST, no such return is under audit and no assessment has been asserted in respect of any such return. All federal and other taxes owed by JHVST with respect to the Acquiring Fund have been paid so far as due. JHVST and the Acquiring Fund currently are, at all times since their inception have been, and will continue to be up until and at the Exchange Date, in compliance with Section 817(h)(1) of the Internal Revenue Code of 1986, as amended (the "Code"), and Treas. Reg. Section 1.817-5, as if those provisions applied directly to that Fund relating to the diversification requirements for variable annuity, endowment and life insurance contracts. The Acquiring Fund's shares are (and since its inception have been) held only by (a) insurance company "segregated asset accounts" within the meaning of Treas. Reg. Section 1.817-5(e) and (b) other purchasers of the kind specified in Treas. Reg. Section 1.817-5(f)(3) as from time to time in effect. The Acquiring Fund is, and at all times since its inception has been, qualified as a "regulated investment company" under subchapter M of the Code. (m) No Approvals Required. Except for the Registration Statement (as defined in Section 4(a) hereof) and the approval of the Acquired Fund's shareholders (referred to in Section 6(a) hereof), no consents, approvals, authorizations, registrations or exemptions under federal or state laws are necessary for the consummation by JHVST of the Reorganization, except such as have been obtained as of the date hereof. (n) At the time the Registration Statement becomes effective, the Registration Statement, except as to information relating to the Acquired Fund that is provided or approved by MIT pursuant to Section 5(c) hereof, (i) will comply in all material respects with the provisions of the Securities Act and the rules and regulations of the Commission thereunder (the "Regulations") and (ii) will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; and at the time the Registration Statement becomes effective, at the time of the Acquired Fund shareholders' meeting referred to in Section 5(a) hereof, and at the Effective Time of the Reorganization, the proxy statement/prospectus (the "Prospectus") and statement of additional information (the "Statement of Additional Information") included therein, as amended or supplemented by any amendments or supplements filed by JHVST, will not contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 24 3. REPRESENTATIONS AND WARRANTIES OF MIT ON BEHALF OF THE ACQUIRED FUND MIT on behalf of the Acquired Fund represents and warrants as follows: (a) Organization, Existence, etc. MIT is a business trust that is duly organized, validly existing and in good standing under the laws of the Commonwealth of Massachusetts and has the power to carry on its business as it is now being conducted. The Acquired Fund is a validly existing series of shares of such business trust representing interests in a separate portfolio thereof under the laws of Massachusetts. Each of the Acquired Fund and MIT has all necessary federal, state and local authorization to own all of its properties and assets and to carry on its business as now being conducted. (b) Registration as Investment Company. MIT is registered under the Act as an open-end investment company of the management type; such registration has not been revoked or rescinded and is in full force and effect. (c) Current Offering Documents. The current prospectus of MIT dated May 1, 2003 and the current statement of additional information of MIT dated May 1, 2003, each as supplemented or amended and as may be further supplemented or amended, included in MIT's registration statement on Form N-1A filed with the Commission, comply in all material respects with the requirements of the Securities Act and the Act and do not contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (d) Capitalization. MIT has an unlimited number of authorized shares of beneficial interest of which as of March ___, 2004 there were outstanding the following numbers of shares of the Acquired Fund : __________ Series I shares and __________ Series II shares, and no shares of such Fund were held in the treasury of MIT. All of the outstanding shares of MIT have been duly authorized and are validly issued, fully paid and non-assessable (except as disclosed in MIT's prospectus and recognizing that under Massachusetts law, shareholders of an MIT series could, under certain circumstances, be held personally liable for the obligations of such MIT series). Because MIT is an open-end investment company engaged in the continuous offering and redemption of its shares, the number of outstanding shares may change prior to the Effective Time of the Reorganization. All such shares will, at the Exchange Date, be held in book-entry form by shareholders of record of the Acquired Fund as set forth on the books and records of MIT in the amounts set forth therein, and as set forth in any list of shareholders of record provided to the Acquiring Fund for purposes of the Reorganization, and no such shareholders of record will have any preemptive rights to purchase any Acquired Fund Shares, and the Acquired Fund does not have outstanding any options, warrants or other rights to subscribe for or purchase any Acquired Fund Shares (other than any existing dividend reinvestment plans of the Acquired Fund or as set forth in this Plan), nor are there outstanding any securities convertible into any shares of the Acquired Fund (except pursuant to any existing exchange privileges described in the current prospectus and statement of additional information of MIT). All of the Acquired Fund's issued and outstanding shares have been offered and sold in compliance in all material respects with applicable registration requirements of the Securities Act and any applicable state securities laws. (e) Financial Statements. The financial statements of MIT for the fiscal year ended December 31, 2003, which have been audited by PriceWaterhouseCoopers LLP, fairly present the financial position of the Acquired Fund as of the dates thereof and the respective results of operations and changes in net assets for each of the periods indicated in accordance with GAAP. (f) Authority Relative to this Plan. MIT, on behalf of the Acquired Fund, has the power to enter into this Plan and to carry out its obligations hereunder. The execution and delivery of this Plan and the consummation of the transactions contemplated hereby have been duly authorized by MIT's Board of Trustees and no other proceedings by MIT other than those contemplated under this Plan are necessary to authorize its officers to effectuate this Plan and the transactions contemplated hereby. MIT is not a party to or obligated under any provision of its Declaration of Trust or By-laws, or under any indenture or contract provision or any other commitment or obligation, or subject to any order or decree, which would be violated by or which would prevent its execution and performance of this Plan in accordance with its terms. (g) Liabilities. There are no liabilities of the Acquired Fund, whether actual or contingent and whether or not determined or determinable, other than liabilities disclosed or provided for in MIT's Financial Statements with 25 respect to the Acquired Fund and liabilities incurred in the ordinary course of business subsequent to December 31, 2003 or otherwise previously disclosed to and accepted by JHVST with respect to the Acquired Fund, none of which has been materially adverse to the business, assets or results of operations of the Acquired Fund . (h) No Material Adverse Change. Since December 31, 2003, there has been no material adverse change in the financial condition, results of operations, business, properties or assets of the Acquired Fund, other than those occurring in the ordinary course of business (for these purposes, a decline in net asset value and a decline in net assets due to redemptions do not constitute a material adverse change). (i) Litigation. There are no claims, actions, suits or proceedings pending or, to the knowledge of MIT, threatened which would adversely affect MIT or the Acquired Fund's assets or business or which would prevent or hinder consummation of the transactions contemplated hereby, there are no facts which would form the basis for the institution of administrative proceedings against MIT or the Acquired Fund and, to the knowledge of MIT, there are no regulatory investigations of MIT or the Acquired Fund , pending or threatened, other than routine inspections and audits. (j) Contracts. MIT, on behalf of the Acquired Fund , is not subject to any contracts or other commitments (other than this Plan) which will not be terminated with respect to the Acquired Fund without liability to MIT or the Acquired Fund as of or prior to the Effective Time of the Reorganization. (k) Taxes. All federal and other income tax returns of MIT with respect to the Acquired Fund required to be filed by MIT with respect to the Acquired Fund have been filed for all taxable years to and including December 31, 2003, and all taxes payable pursuant to such returns have been paid. To the knowledge of MIT, no such return is under audit and no assessment has been asserted in respect of any such return. All federal and other taxes owed by MIT with respect to the Acquired Fund have been paid so far as due. MIT and the Acquired Fund currently are, at all times since their inception have been, and will continue to be up until and at the Exchange Date, in compliance with Section 817(h)(1) of the Code and Treas. Reg. Section 1.817-5, as if those provisions applied directly to that Fund relating to the diversification requirements for variable annuity, endowment and life insurance contracts. The Acquired Fund's shares are (and since its inception have been) held only by (a) insurance company "segregated asset accounts" within the meaning of Treas. Reg. Section 1.817-5(e) and (b) other purchasers of the kind specified in Treas. Reg. Section 1.817-5(f)(3) as from time to time in effect. The Acquired Fund is, and at all times since its inception has been, qualified as a "regulated investment company" under subchapter M of the Code. (l) No Approvals Required. Except for the Registration Statement (as defined in Section 4(a) hereof) and the approval of the Acquired Fund's shareholders referred to in Section 6(a) hereof, no consents, approvals, authorizations, registrations or exemptions under federal or state laws are necessary for the consummation by MIT of the Reorganization, except such as have been obtained as of the date hereof. (m) At the time the Registration Statement becomes effective, the Registration Statement, insofar as it relates to the Acquired Fund, (i) will comply in all material respects with the provisions of the Securities Act and the Regulations and (ii) will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; and at the time the Registration Statement becomes effective, at the time of the Acquired Fund's shareholders' meeting referred to in Section 5(a) and at the Effective Time of the Reorganization, the Prospectus and Statement of Additional Information, as amended or supplemented by any amendments or supplements filed by JHVST, insofar as they relate to the Acquired Fund, will not contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the representations and warranties in this subsection shall apply only to statements in or omissions from the Registration Statement, Prospectus or Statement of Additional Information made in reliance upon and in conformity with information furnished or approved by MIT for use in the Registration Statement, Prospectus or Statement of Additional Information as provided in Section 5(c). 26 4. COVENANTS OF JHVST ON BEHALF OF THE ACQUIRING FUND JHVST on behalf of the Acquiring Fund covenants to the following: (a) Registration Statement. On behalf of the Acquiring Fund, JHVST shall file with the Commission a Registration Statement on Form N-14 (the "Registration Statement") under the Securities Act relating to the Acquiring Fund Shares issuable hereunder and the proxy statement of the Acquired Fund relating to the meeting of the Acquired Fund's shareholders referred to in Section 5(a) herein. (b) Cooperation in Effecting Reorganization. JHVST agrees to use all reasonable efforts to effectuate the Reorganization, to continue in operation thereafter, and to obtain any necessary regulatory approvals for the Reorganization. JHVST shall furnish such data and information relating to the Acquiring Fund as shall be reasonably requested for inclusion in the information to be furnished to the Acquired Fund shareholders in connection with the meeting of the Acquired Funds' shareholders for the purpose of acting upon this Plan and the transactions contemplated herein. (c) Operations in the Ordinary Course. Except as otherwise contemplated by this Plan, JHVST with respect to the Acquiring Fund shall conduct its business in the ordinary course until the consummation of the Reorganization, it being understood that such ordinary course of business will include the declaration and payment of customary dividends and distributions. 5. COVENANTS OF MIT ON BEHALF OF THE ACQUIRED FUND MIT on behalf of the Acquired Fund covenants to the following: (a) Meeting of the Acquired Fund's Shareholders. MIT shall call and hold a meeting of the shareholders of the Acquired Fund for the purpose of acting upon this Plan and the transactions contemplated herein. (b) Portfolio Securities. With respect to the assets to be transferred in accordance with Section 1(a), the Acquired Fund's assets shall consist of all property and assets of any nature whatsoever, including, without limitation, all cash, cash equivalents, securities, claims and receivables (including dividend and interest receivables) owned, and any deferred or prepaid expenses shown as an asset on MIT's books. At least five (5) business days prior to the Exchange Date, the Acquired Fund will provide MIT, for the benefit of the Acquiring Fund, with a list of its assets and a list of its stated liabilities. The Acquired Fund shall have the right to sell any of the securities or other assets shown on the list of assets prior to the Exchange Date but will not, without the prior approval of JHVST, on behalf of the Acquiring Fund, acquire any additional securities other than securities which the Acquiring Fund is permitted to purchase, pursuant to its investment objective and policies or otherwise (taking into consideration its own portfolio composition as of such date). In the event that the Acquired Fund holds any investments that the Acquiring Fund would not be permitted to hold, the Acquired Fund will dispose of such securities prior to the Exchange Date to the extent practicable and to the extent that its shareholders would not be materially affected in an adverse manner by such a disposition. In addition, MIT will prepare and deliver, immediately prior to the Effective Time of the Reorganization, a Statement of Assets and Liabilities of the Acquired Fund, prepared in accordance with GAAP (the "Schedule"), which Schedule shall be certified by the principal accounting officer of the Acquired Fund. All securities to be listed in the Schedule as of the Effective Time of the Reorganization will be owned by the Acquired Fund free and clear of any liens, claims, charges, options and encumbrances, except as indicated in the Schedule and as accepted by JHVST, and, except as so indicated and accepted, none of such securities is or, after the Reorganization as contemplated hereby, will be subject to any restrictions, legal or contractual, on the disposition thereof (including restrictions as to the public offering or sale thereof under the Securities Act) and, except as so indicated and accepted, all such securities are or will be readily marketable. (c) Registration Statement. In connection with the preparation of the Registration Statement, MIT will cooperate with JHVST and will furnish to JHVST the information relating to the Acquired Fund required by the Securities Act and the Regulations to be set forth in the Registration Statement (including the Prospectus and Statement of Additional Information). 27 (d) Cooperation in Effecting Reorganization. MIT agrees to use all reasonable efforts to effectuate the Reorganization and to obtain any necessary regulatory approvals for the Reorganization. (e) Operations in the Ordinary Course. Except as otherwise contemplated by this Plan, MIT with respect to the Acquired Fund shall conduct its business in the ordinary course until the consummation of the Reorganization, it being understood that such ordinary course of business will include the declaration and payment of customary dividends and distributions. (f) Statement of Earnings and Profits. As promptly as practicable, but in any case within 60 days after the Exchange Date, MIT on behalf of the Acquired Fund, shall prepare a statement of the earnings and profits of the Acquired Fund for federal income tax purposes, and of any capital loss carryovers and other items that the Acquiring Fund will succeed to and take into account as a result of Section 381 of the Code. Such statement will be certified by the principal accounting officer of the Acquired Fund. 6. CONDITIONS PRECEDENT TO OBLIGATIONS OF MIT ON BEHALF OF THE ACQUIRED FUND The obligations of MIT on behalf the Acquired Fund with respect to the consummation of the Reorganization are subject to the satisfaction of the following conditions: (a) Approval by the Acquired Fund's Shareholders. This Plan and the transactions contemplated by the Reorganization shall have been approved by the requisite vote of the shares of the Acquired Fund entitled to vote on the matter ("Acquired Fund Shareholder Approval"). (b) Covenants, Warranties and Representations. JHVST shall have complied with each of its covenants contained herein, each of the representations and warranties contained herein shall be true in all material respects as of the Effective Time of the Reorganization (except as otherwise contemplated herein), and there shall have been no material adverse change (as described in Section 2(i)) in the financial condition, results of operations, business, properties or assets of the Acquiring Fund since December 31, 2003. (c) JHVST on behalf of the Acquiring Fund shall have delivered to MIT on behalf of the Acquired Fund a certificate executed in its name by JHVST's principal accounting officer, in form and substance satisfactory to MIT on behalf of the Acquired Fund and dated as of the Exchange Date, to the effect that the representations and warranties of JHVST on behalf of the Acquiring Fund made in the Plan are true and correct at and as of the Exchange Date, except as may be affected by the transactions contemplated by the Plan. (d) Regulatory Approval. The Registration Statement shall have been declared effective by the Commission and no stop orders under the Securities Act pertaining thereto shall have been issued and all other approvals, registrations, and exemptions under federal and state laws considered to be necessary shall have been obtained (collectively, the "Regulatory Approvals"). (e) Tax Opinion. MIT shall have received the opinion of Dykema Gossett PLLC, dated on or before the Effective Time of the Reorganization, addressed to and in form and substance satisfactory to MIT and JHVST, as to certain of the federal income tax consequences under the Code of the Reorganization insofar as it relates to the Acquired Fund and the Acquiring Fund. For purposes of rendering its opinion, Dykema Gossett PLLC may rely exclusively and without independent verification, as to factual matters, on the statements made in the Plan, the Prospectus and Statement of Additional Information, and on such other written representations as, respectively, the President or Treasurer of MIT and the President or Treasurer of JHVST, will have verified as of the Effective Time of the Reorganization. The opinion will be to the effect that, based on the facts and assumptions stated therein, for federal income tax purposes: (1) the Reorganization will constitute a reorganization within the meaning of Section 368(a)(1) of the Code with respect to the Acquired Fund and the Acquiring Fund; (2) no gain or loss will be recognized by the Acquired Fund or the Acquiring Fund upon the transfer of all of the assets and liabilities, if any, of the Acquired Fund to the Acquiring Fund solely in exchange for shares of the Acquiring Fund; (3) no gain or loss will be recognized by shareholders of the Acquired Fund upon the exchange of such Fund's shares solely for shares of the corresponding Acquiring Fund; (4) the holding period and tax basis of the shares of the Acquiring Fund received by each holder of shares of the Acquired Fund pursuant to the Reorganization will be the same as the holding period and tax basis of the shares of the Acquired Fund held by the shareholder (provided the shares of the 28 Acquired Fund were held as a capital asset on the date of the Reorganization) immediately prior to the Reorganization; and (5) the holding period and tax basis of the assets of the Acquired Fund acquired by the Acquiring Fund will be the same as the holding period and tax basis of those assets to the Acquired Fund immediately prior to the Reorganization. 7. CONDITIONS PRECEDENT TO OBLIGATIONS OF JHVST ON BEHALF OF THE ACQUIRING FUND The obligations of JHVST on behalf of the Acquiring Fund with respect to the consummation of the Reorganization are subject to the satisfaction of the following conditions: (a) Approval by the Acquired Fund's Shareholders. The Acquired Fund Shareholder Approval shall have been obtained. (b) Covenants, Warranties and Representations. MIT shall have complied with each of its covenants contained herein, each of the representations and warranties contained herein shall be true in all material respects as of the Effective Time of the Reorganization (except as otherwise contemplated herein), and there shall have been no material adverse change (as described in Section 3(h) in the financial condition, results of operations, business, properties or assets of the Acquired Fund since December 31, 2003. (c) MIT on behalf of the Acquired Fund shall have delivered to JHVST on behalf of the Acquiring Fund a certificate executed in its name by MIT's principal accounting officer, in form and substance satisfactory to JHVST on behalf of the Acquiring Fund and dated as of the Exchange Date, to the effect that the representations and warranties of MIT on behalf of the Acquired Fund made in the Plan are true and correct at and as of the Exchange Date, except as may be affected by the transactions contemplated by the Plan. (d) Portfolio Securities. All securities to be acquired by the Acquiring Fund in the Reorganization shall have been approved for acquisition by the investment adviser (or, at the discretion of such investment adviser, by the subadviser) for the Acquiring Fund as consistent with its investment policies. (e) Regulatory Approval. The Regulatory Approvals shall have been obtained. (e) Distribution of Income and Gains. MIT on behalf of the Acquired Fund shall have distributed to the shareholders of the Acquired Fund, in a distribution or distributions qualifying for the deduction for dividends paid under Section 561 of the Code, all of its investment company taxable income (without regard to the deductions for dividends paid) as defined in Section 852(b)(2) of the Code (determined without regard to Section 852(b)(2)(D) of the Code) for its taxable year ending on the Exchange Date, all of the excess of (i) its interest income excludable from gross income under Section 103(a) of the Code over (ii) its deductions disallowed under Sections 265 and 171(a)(2) of the Code for its taxable year ending on the Exchange Date, and all of its net capital gain as such term is used in Section 852(b)(3) of the Code, after reduction by any capital loss carryforward, for its taxable year ending on the Exchange Date. (f) Tax Opinion. JHVST shall have received the opinion of Dykema Gossett PLLC, dated on or before the Effective Time of the Reorganization, addressed to and in form and substance satisfactory to MIT and JHVST, as to certain of the federal income tax consequences under the Code of the Reorganization insofar as it relates to the Acquired Fund and the Acquiring Fund. For purposes of rendering its opinion, Dykema Gossett PLLC may rely exclusively and without independent verification, as to factual matters, on the statements made in the Plan, the Prospectus and Statement of Additional Information, and on such other written representations as, respectively, the President or Treasurer of MIT and the President or Treasurer of JHVST, will have verified as of the Effective Time of the Reorganization. The opinion will be to the effect that, based on the facts and assumptions stated therein, for federal income tax purposes: (1) the Reorganization will constitute a reorganization within the meaning of Section 368(a)(1) of the Code with respect to the Acquired Fund and the Acquiring Fund; (2) no gain or loss will be recognized by the Acquired Fund or the Acquiring Fund upon the transfer of all of the assets and liabilities, if any, of the Acquired Fund to the Acquiring Fund solely in exchange for shares of the Acquiring Fund; (3) no gain or loss will be recognized by shareholders of the Acquired Fund upon the exchange of such Fund's shares solely for shares of the corresponding Acquiring Fund; (4) the holding period and tax basis of the shares of the Acquiring Fund 29 received by each holder of shares of the Acquired Fund pursuant to the Reorganization will be the same as the holding period and tax basis of the shares of the Acquired Fund held by the shareholder (provided the shares of the Acquired Fund were held as a capital asset on the date of the Reorganization) immediately prior to the Reorganization; and (5) the holding period and tax basis of the assets of the Acquired Fund acquired by the Acquiring Fund will be the same as the holding period and tax basis of those assets to the Acquired Fund immediately prior to the Reorganization 8. AMENDMENTS; TERMINATIONS; NO SURVIVAL OF COVENANTS, WARRANTIES AND REPRESENTATIONS (a) Amendments. MIT and JHVST may, by an instrument in writing authorized by their respective Boards of Trustees, amend this Plan at any time before or after approval hereof by the shareholders of the Acquired Fund, but after such approval, no amendment shall be made which substantially changes the terms hereof. (b) Waivers. At any time prior to the Effective Time of the Reorganization, each of MIT, on behalf of the Acquired Fund, and JHVST, on behalf of the Acquiring Fund, may by written instrument signed by it (i) waive any inaccuracies in the representations and warranties made to it and such Fund contained herein and (ii) waive compliance with any of the covenants or conditions made for its benefit and the benefit of such Fund contained herein, except that conditions set forth in Sections 6(c) and 7(d) may not be waived. (c) Termination. This Plan may be terminated by the mutual agreement of MIT on behalf of the Acquired Fund and JHVST on behalf of the Acquiring Fund at any time prior to the Effective Time of the Reorganization. In addition, either party may at its option, at any time prior to the Effective Time of the Reorganization, whether before or after approval of this Plan by the shareholders of the Acquired Fund, without liability on the part of any party hereto, its Trustees, officers or shareholders, terminate this Plan: (i) because of a breach by the other of any material representation, warranty, covenant or agreement contained herein or to be performed prior to the Effective Time of the Reorganization; (ii) because of a material condition herein expressed to be precedent to the obligations of the terminating party which has not been fulfilled and has not been waived by the terminating party; (iii) by resolution of the Board of Trustees of MIT if it should determine in good faith that proceeding with this Plan is not in the best interests of the Acquired Fund, its shareholders and contract owners whose contracts are funded by shares of the Acquired Fund; or (iv) by resolution of the Board of Trustees of JHVST if it should determine in good faith that proceeding with this Plan is not in the best interests of the Acquiring Fund, its shareholders and contract owners whose contracts are funded by shares of the Acquiring Fund. (d) Unless MIT on behalf of the Acquired Fund and JHVST on behalf of the Acquiring Fund shall otherwise determine by written instrument, this Plan shall terminate without liability as of the close of business on September 1, 2004 if the Effective Time of the Reorganization is not on or prior to such date. (e) Survival. No representations, warranties or covenants in or pursuant to this Plan, except for the provisions of Section 5(f) and Section 9 of this Plan, shall survive the Reorganization. 9. EXPENSES The expenses of the Reorganization will be borne by the Acquired Fund and the Acquiring Fund, with each Fund bearing one-half of the total expenses. Such expenses include, without limitation, (i) expenses incurred in connection with the entering into and the carrying out of the provisions of this Plan; (ii) expenses associated with the preparation and filing of the Registration Statement (other than any registration fees payable to the Commission in respect of the registration of the Acquiring Fund Shares registered thereby, which shall be payable by the Acquiring Fund); (iii) fees and expenses of preparing and filing such forms as are necessary under any applicable state 30 securities laws in connection with the Reorganization; (iv) postage; (v) printing; (vi) accounting fees; (vii) legal fees and (viii) solicitation costs relating to the Reorganization. 10. RELIANCE All covenants and agreements made under this Plan shall be deemed to have been material and relied upon by MIT on behalf of the Acquired Fund and JHVST on behalf of the Acquiring Fund notwithstanding any investigation made by such party or on its behalf. 11. HEADINGS; COUNTERPARTS; GOVERNING LAW; ASSIGNMENT (a) The section and paragraph headings contained in this Plan are for reference purposes only and shall not affect in any way the meaning or interpretation of this Plan. (b) This Plan may be executed in any number of counterparts, each of which shall be deemed an original. (c) This Plan shall be governed by and construed in accordance with the laws of The Commonwealth of Massachusetts. (d) This Plan shall bind and inure to the benefit of MIT, the Acquired Fund, JHVST and the Acquiring Fund and their respective successors and assigns, but no assignment or transfer hereof or of any rights or obligations hereunder shall be made by either party without the written consent of the other party. Nothing herein expressed or implied is intended or shall be construed to confer upon or give any person, firm or corporation, other than the parties hereto and their respective successors and assigns, any rights or remedies under or by reason of this Plan. (e) All persons dealing with MIT or JHVST must look solely to the property of MIT or JHVST, respectively, for the enforcement of any claims against MIT or JHVST, as none of the Trustees, officers, agents or shareholders of MIT or JHVST assumes any personal liability for obligations entered into on behalf of MIT or JHVST, respectively. No series of MIT or JHVST shall be liable for claims against, respectively, any other series of MIT or JHVST. IN WITNESS WHEREOF, the undersigned have executed this Plan as of the date first above written. MANUFACTURERS INVESTMENT TRUST on behalf of the Acquired Fund BY: /s/ JAMES D. GALLAGHER ---------------------------------- Name: James D. Gallagher Title: President JOHN HANCOCK VARIABLE SERIES TRUST I on behalf of the Acquiring Fund BY: /s/ MICHELE G. VAN LEER ---------------------------------- Name: Michele G. Van Leer Title: Chairman and Chief Executive Officer 31 APPENDIX A THE ACQUIRED FUND: MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE The following discussion sets forth information regarding the performance of the Acquired Fund for the period ended December 31, 2003. There are several ways to evaluate a fund's historical performance. One can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. WITH RESPECT TO ALL PERFORMANCE INFORMATION PRESENTED, IT IS IMPORTANT TO UNDERSTAND THAT PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. RETURN AND PRINCIPAL FLUCTUATE, AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE TABLE The following performance table for the Acquired Fund shows two types of total return information: CUMULATIVE AND AVERAGE ANNUAL TOTAL RETURNS. A CUMULATIVE TOTAL RETURN is an expression of a fund's total change in share value in percentage terms over a set period of time -- one, five and ten years (or since the fund's inception if less than the applicable period). An AVERAGE ANNUAL TOTAL RETURN takes the fund's cumulative total return for a time period greater than one year and shows what would have happened if the fund had performed at a constant rate each year. THE TABLE SHOWS ALL CUMULATIVE AND AVERAGE ANNUAL TOTAL RETURNS, NET OF FEES AND EXPENSES OF MIT, BUT DO NOT REFLECT THE INSURANCE (SEPARATE ACCOUNT) EXPENSES (INCLUDING A POSSIBLE CONTINGENT DEFERRED SALES CHARGE) OF THE VARIABLE ANNUITY AND VARIABLE LIFE PRODUCTS THAT INVEST IN MIT. IF THESE WERE INCLUDED, PERFORMANCE WOULD BE LOWER. GRAPH -- CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES. The following performance graph for the Acquired Fund shows the change in value of a $10,000 investment over the life of the Fund. The Fund's performance is compared with the performance of one or more broad-based securities indices as a "benchmark." All performance information includes the reinvestment of dividends and capital gain distributions, as well as the deduction of ongoing management fees and the Fund's operating expenses. The benchmark used for comparison is unmanaged and includes reinvestment of dividends and capital gains distributions, if any, but does not reflect any fees or expenses. PORTFOLIO MANAGER'S COMMENTARY. Following the performance table and graph for the Acquired Fund is a commentary by the portfolio manager regarding the Fund's performance during the period ended December 31, 2003. The views expressed are those of the portfolio manager as of that date and are subject to change based on market and other conditions. Information about the Fund's holdings, asset allocation or country diversification is historical and is no indication of future portfolio composition, which will vary. "MSCI" and "EAFE" are trademarks of Morgan Stanley & Co. Incorporated. The following information regarding the Acquired Fund was included in MIT's Annual Report to Shareholders for 2003. INTERNATIONAL INDEX TRUST ("ACQUIRED FUND") A-1 INVESTMENT OBJECTIVE To achieve the approximate aggregate total return of a & POLICIES: foreign equity market index by attempting to track the performance of the Morgan Stanley Europe Australasia Far East Free Index (the MSCI EAFE Index). The portfolio invests at least 80% of its net assets in (a) the common stocks that are included in the MSCI EAFE Index and (b) securities (which may or may not be included in the MSCI EAFE Index) that MFC believes as a group will behave in a manner similar to the index. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Carson Jen and Narayan Ramani INCEPTION DATE: May 1, 2000
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [INTERNATIONAL INDEX TRUST PERFORMANCE GRAPH]
INTERNATIONAL INDEX TRUST SERIES I MSCI EAFE INDEX ---------------------------------- --------------- Apr. 2000 10000.00 10000.00 9784.00 9715.00 Jun. 2000 10112.00 10097.00 9704.00 9675.00 9776.00 9761.00 Sep. 2000 9320.00 9288.00 9080.00 9071.00 8712.00 8732.00 Dec. 2000 9016.00 9045.00 9000.00 9040.00 8318.00 8363.00 Mar. 2001 7726.00 7810.00 8294.00 8357.00 7994.00 8069.00 Jun. 2001 7686.00 7742.00 7531.00 7602.00 7345.00 7411.00 Sep. 2001 6598.00 6662.00 6752.00 6832.00 6963.00 7085.00 Dec. 2001 6996.00 7127.00 6610.00 6749.00 6667.00 6796.00 Mar. 2002 7037.00 7167.00 7053.00 7219.00 7136.00 7317.00 Jun. 2002 6848.00 7029.00 6175.00 6335.00 6142.00 6322.00 Sep. 2002 5477.00 5645.00 5756.00 5949.00 6011.00 6220.00 Dec. 2002 5796.00 6011.00 5546.00 5760.00 5396.00 5629.00 Mar. 2003 5280.00 5522.00 5780.00 6070.00 6097.00 6443.00 Jun. 2003 6238.00 6603.00 6355.00 6764.00 6497.00 6928.00 Sep. 2003 6671.00 7143.00 7038.00 7589.00 7180.00 7759.00 Dec. 2003 7662.00 8365.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception MSCI EAFE Index 39.17% -4.64% -16.35% International Index Trust Series I 32.18% -7.00% -23.38% International Index Trust Series II+++ 32.12% 7.25% 14.48% International Index Trust Series III*** 15.57%
+++ Series II inception date: January 28, 2002 ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the International Index Trust Series I returned +32.18%, underperforming the +39.17% return of the MSCI EAFE Index. ENVIRONMENT: All of the MSCI EAFE Index sectors were in the positive territory for 2003. Information Technology was the best performer, followed by Industrials, Materials and Financials, all of which returned high double-digit gains. Energy, Consumer Staples and Utilities were the worst performing sectors. Likewise, most countries in the Index had gains for 2003. Greece was the best performing country, gaining about 67% in value. Sweden, Spain, Germany, New Zealand and Denmark also had high double-digit gains. Finland was the worst performer, followed by the Netherlands. MSCI rebalanced its EAFE Index in May and again in November. The rebalancing resulted in no significant country or sector weight changes. OUTLOOK: In 2003, the European Central Bank cut its benchmark interest rate from 2.75% to 2.0% in June. Similarly, the Bank of England cut its rate from 4.0% to 3.5% in July. A corporate profit recovery is underway in Japan, driven in part through sales growth but largely due to the effects of restructuring. lix APPENDIX B THE ACQUIRING FUND: MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE During 2003, the subadviser to the Acquiring Fund was Independence Investment LLC. SSgA Fund Management, Inc. ("SSgA") succeeded Independent Investment LLC as subadviser effective March 29, 2004. The following information regarding the Acquiring Fund appeared in the Acquiring Fund's Annual Report to Shareholders for 2003. Inception: May 2, 1988 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Portfolio Manager: INDEPENDENCE INVESTMENT LLC D. Nolan - -------------------------------------------------------------------------------- .. In 2003, the Fund returned 41.99%, underperforming its customized benchmark. .. On November 1st, the Fund's benchmark was changed from a primarily GDP weighted benchmark to a market capitalization weighted benchmark (the MSCI All Country World Free ex-US Index). This index provides broad exposure to both developed and emerging market equities. .. The Fund's investment objective is to track the long-term performance of broad-based equity indices of foreign companies in developed and emerging markets as measured by the MSCI All Country World Free ex-US Index. .. The manager seeks to track the performance of its benchmark by investing in a representative sample of issues selected through proprietary quantitative techniques. Issues are selected to best match the risk characteristics of the index, including country and sector exposures. [CHART] Line Chart Historical Fund Return $10,000 Investment made 12/31/93 (10-Year Period) International Equity Index International Equity Fund Index Benchmark(1) ------------- ---------------------- 12/31/1993 10,000.00 10,000.00 1/31/1994 13,320.64 14,421.38 2/28/1994 13,165.42 14,383.89 3/31/1994 12,478.86 13,766.82 4/29/1994 12,713.92 14,354.66 5/31/1994 12,862.54 14,275.71 6/30/1994 12,530.95 14,481.28 7/29/1994 12,819.11 14,623.20 8/31/1994 13,412.54 14,972.69 9/30/1994 13,133.71 14,504.05 10/31/1994 13,396.96 14,989.93 11/30/1994 12,520.14 14,273.41 12/30/1994 12,401.68 14,366.19 1/31/1995 11,708.88 13,817.40 2/28/1995 11,908.32 13,781.48 3/31/1995 12,340.79 14,645.58 4/28/1995 12,712.55 15,200.64 5/31/1995 12,972.79 15,022.80 6/30/1995 12,847.88 14,762.90 7/31/1995 13,561.39 15,685.58 8/31/1995 13,175.93 15,091.10 9/29/1995 13,362.66 15,389.90 10/31/1995 13,130.99 14,980.53 11/30/1995 13,191.91 15,401.48 12/29/1995 13,395.71 16,025.24 1/31/1996 13,606.81 16,094.15 2/29/1996 13,761.02 16,152.09 3/29/1996 13,892.48 16,499.36 4/30/1996 14,407.05 16,982.79 5/31/1996 14,260.73 16,673.71 6/28/1996 14,292.36 16,772.08 7/31/1996 13,686.10 16,285.69 8/30/1996 13,793.59 16,324.78 9/30/1996 14,051.46 16,762.28 10/31/1996 13,964.56 16,594.66 11/29/1996 14,589.37 17,258.44 12/31/1996 14,626.33 17,040.99 1/31/1997 14,373.63 16,447.96 2/28/1997 14,427.57 16,721.00 3/31/1997 14,159.30 16,786.21 4/30/1997 14,260.03 16,878.53 5/30/1997 15,461.21 17,980.70 6/30/1997 16,261.79 18,976.83 7/31/1997 16,773.41 19,288.05 8/29/1997 14,945.68 17,851.09 9/30/1997 16,026.08 18,854.32 10/31/1997 13,854.46 17,410.08 11/28/1997 13,849.83 17,235.98 12/31/1997 13,891.23 17,391.11 1/31/1998 13,901.32 18,191.10 2/27/1998 14,968.54 19,362.60 3/31/1998 15,575.41 19,962.84 4/30/1998 15,991.94 20,124.54 5/29/1998 16,086.96 20,414.34 6/30/1998 16,281.99 20,610.31 7/31/1998 16,414.69 20,884.43 8/31/1998 14,326.78 18,138.13 9/30/1998 13,881.02 17,637.52 10/30/1998 15,383.40 19,605.86 11/30/1998 16,129.04 20,627.33 12/31/1998 16,783.26 21,462.74 1/29/1999 16,820.14 21,490.64 2/26/1999 16,250.77 20,820.13 3/31/1999 17,103.05 21,921.51 4/30/1999 17,757.57 22,807.14 5/28/1999 16,897.58 21,616.61 6/30/1999 17,768.81 22,708.25 7/30/1999 18,185.56 23,273.68 8/31/1999 18,351.79 23,436.60 9/30/1999 18,481.01 23,724.87 10/29/1999 19,100.24 24,514.91 11/30/1999 19,943.20 25,529.83 12/31/1999 21,964.24 28,090.47 1/31/2000 20,675.58 26,714.03 2/29/2000 21,380.17 27,641.01 3/31/2000 21,956.62 28,398.37 4/28/2000 20,545.20 26,566.68 5/31/2000 20,148.57 25,929.08 6/30/2000 20,856.49 27,041.44 7/31/2000 19,865.47 25,683.96 8/31/2000 20,057.16 25,956.21 9/29/2000 19,086.01 24,648.01 10/31/2000 18,456.28 23,839.56 11/30/2000 17,652.71 22,776.31 12/31/2000 18,138.35 23,336.61 1/31/2001 18,503.20 23,852.35 2/28/2001 17,218.76 22,230.39 3/30/2001 16,015.75 20,729.84 4/30/2001 17,113.36 22,068.99 5/31/2001 16,571.05 21,395.88 6/30/2001 16,002.68 20,636.33 7/31/2001 15,594.05 20,097.72 8/31/2001 15,226.40 19,599.30 9/28/2001 13,458.20 17,345.38 10/31/2001 13,786.89 17,815.44 11/30/2001 14,416.76 18,597.54 12/31/2001 14,456.93 18,664.49 1/31/2002 13,771.57 17,796.59 2/28/2002 13,950.25 17,983.45 3/29/2002 14,793.86 18,994.12 4/30/2002 14,910.47 19,233.45 5/31/2002 15,106.58 19,562.34 6/28/2002 14,514.59 18,773.98 7/31/2002 13,088.04 16,894.70 8/31/2002 13,076.08 16,909.91 9/28/2002 11,585.10 14,970.34 10/31/2002 12,027.79 15,627.54 11/30/2002 12,663.02 16,460.49 12/31/2002 12,261.97 15,937.04 1/31/2003 8,991.13 11,630.86 2/28/2003 8,818.76 11,404.06 3/29/2003 8,574.05 11,074.48 4/30/2003 9,388.30 12,148.71 5/31/2003 9,962.63 12,948.09 6/28/2003 10,329.08 13,427.17 7/31/2003 10,636.48 13,872.95 8/31/2003 11,017.53 14,357.12 9/28/2003 11,316.09 14,767.73 10/31/2003 12,005.35 15,758.65 11/30/2003 12,268.41 16,102.18 12/31/2003 13,181.59 17,330.78 Value on 12/31/03: - ------------------ $13,182 International Equity Index Fund $17,331 International Equity Index Benchmark(1) MORNINGSTAR CATEGORY+: .. Foreign Large Blend MORNINGSTAR RISK+: .. Average (VL/VUL) .. Average (VA) MORNINGSTAR RATING+: .. *****(VL/VUL) .. *****(VA) TOP TEN HOLDINGS (as of December 31, 2003) % of Assets ------ BP Amoco plc 2.1% Vodafone AirTouch plc 1.9% HSBC Holdings plc 1.9% GlaxoSmithKline plc 1.5% Total Fina SA 1.5% Royal Dutch Petroleum Co. 1.4% Novartis AG 1.2% Nestle SA 1.1% Toyota Motor Corp. 1.0% Nokia Oyj 1.0% AVERAGE ANNUAL TOTAL RETURNS* International International Equity Equity Index Fund Index Benchmark(1) ----------------- -------------------- 1 Year 41.99% 44.57% 3 Years -1.36 -0.43 5 Years 0.74 1.43 10 Years 2.80 5.65 DIVERSIFICATION BY REGION AND COUNTRY (3) (as of December 31, 2003) % of Assets ------ Europe (excluding U.K.) 38.4% United Kingdom (U.K.) 22.3% Japan 18.5% Pacific Basin (excluding Japan) 6.8% Emerging Markets 6.4% Canada 5.0% United States 2.7% DIVERSIFICATION BY REGION(4) Developed Markets 91% Emerging Markets 9% (1) The International Equity Benchmark represents the MSCI EAFE from May 1988 to April 1998 and then MSCI EAFE GDP weighted from May 1998 to June 1999 and then 90% MSCI EAFE GDP/10% MSCI Emerging Markets Free from July 1999 to October 2003 and now the MSCI All Country World Free excluding U.S. from November 2003 to present. * Total returns are for the period ended December 31, 2003. Returns represent past performance, assume reinvestment of all distributions, and are not indicative of future performance. Investment returns and principal value of fund shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The performance of the fund on this page is reported net of Trust level charges (i.e. investment management fees and operating expenses). It does not reflect expense and charges of the applicable separate accounts and variable products, all of which vary to a considerable extent and are described in your product prospectus. There are special risks associated with international investing, including currency fluctuations, political and economic instability, foreign taxation and different accounting standards, as outlined in the current prospectus. Performance would be lower if expenses and charges of the separate accounts and products were reflected. + Source: MorningStar, Inc. Data as of 12/31/03. VL represents Variable Life subaccounts, VUL represents Variable Universal Life subaccounts and VA represents Variable Annuity subaccounts Hancock VL/VUL subaccounts were rated against 367 VL/VUL subaccounts and 570 VA subaccounts in the Morningstar Foreign Large Blend category. This represents the Morningstar 3 year rating. (3) Calculations based upon country in which security is traded (listed). (4) Calculations based upon country in which security is domiciled. THE MANUFACTURERS LIFE INSURANCE COMPANY (U.S.A.)] [THE MANUFACTURERS LIFE INSURANCE COMPANY OF NEW YORK] VOTING INSTRUCTIONS FORM Voting pursuant to these instructions will be as specified. If no specification is made as to an item, voting will be for such item. A voting instruction form is provided for the International Index Trust in which your contract values were invested as of April 20, 2004. Please sign, date and return the voting instruction form in the enclosed postage-paid envelope. Voting instructions must be received by June 17, 2004 to be voted at the Meeting to be held on June 18, 2004. International Index Trust These voting instructions are solicited by [The Manufacturers Life Insurance Company (U.S.A.)] [The Manufacturers Life Insurance Company of New York] in connection with a solicitation of proxies by the Board of Trustees of Manufacturers Investment Trust. The undersigned hereby instructs [The Manufacturers Life Insurance Company (U.S.A.)] [The Manufacturers Life Insurance Company of New York] to vote the shares of Manufacturers Investment Trust (the "Trust") attributable to his or her variable annuity or variable life contract at the Special Meeting of Shareholders to be held at 73 Tremont Street, Boston, Massachusetts 02108 at 10:00 a.m., Boston time, June 18, 2004, and any adjournments thereof, as indicated below. Date: _____________, 2004 Please sign in box below: If a contract is held jointly, each contract owner should sign. If only one signs, his or her signature will be binding. If the contract owner is a corporation, the President or a Vice President should sign in his or her own name, indicating title. If the contract owner is a partnership, a partner should sign in his or her own name, indicating that he or she is a "Partner." If the contract owner is a trust, the trustee should sign in his or her own name, indicating that he or she is a "Trustee." - ------------------------------------------- Signature(s), Title(s), if applicable Indicate your vote below by filling in the appropriate boxes using blue or black ink or a number 2 pencil. Please do not use fine point pens. - ------------------------------------------------ This voting instructions form, if properly executed, will be voted in the manner directed by the contract owner. If no direction is made, this voting instructions form will be voted "For" all proposals. Please refer to the Proxy Statement/Prospectus for a discussion of the proposals. For Against Abstain 1. Approval of Agreement and Plan of Reorganization. [_] [_] [_] 2. To transact such other business as may properly come before the Meeting. - ------------------------------------------------ Please mark your Voting Instructions Form, date and sign it on the reverse side, and return it promptly in the accompanying envelope which requires no postage if mailed in the United States. PART B INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION JOHN HANCOCK VARIABLE SERIES TRUST I 197 Clarendon Street Boston, Massachusetts 02117 STATEMENT OF ADDITIONAL INFORMATION Dated: May __, 2004 This Statement of Additional Information is not a prospectus but should be read in conjunction with the Proxy Statement/Prospectus dated May __, 2004 for the Special Meeting of Shareholders of the International Index Trust, a separate series of the Manufacturers Investment Trust ("MIT"), to be held on June 18, 2004. The Proxy Statement/Prospectus describes the proposed reorganization providing for the transfer of all of the assets and liabilities of the MIT International Index Trust to, and in exchange for Series I and Series II shares of, the International Equity Index Fund, a separate series of the John Hancock Variable Series Trust I ("JHVST"). A copy of the Proxy Statement/Prospectus may be obtained without charge by writing to JHVST at the address above or by calling toll free (800) 576-2227. This Statement of Additional Information incorporates by reference the following documents (or designated portions thereof) that accompany it and have been filed with the Securities and Exchange Commission (SEC): (1) The financial statements of the International Equity Index Fund of JHVST appearing in its Annual Report to Shareholders for the year ended December 31, 2003, and the report of Ernst & Young LLP, independent auditors, appearing therein; and (2) The financial statements of MIT appearing in its Annual Report to Shareholders for the year ended December 31, 2003, and the report of PricewaterhouseCoopers, LLP, independent accountants, appearing therein. TABLE OF CONTENTS Statement of Additional Information of JHVST, dated May 1, 2004 (to be filed by amendment). MIT International Index Trust and JHVST International Equity Index Fund Pro Forma Financial Statements Pro Forma Combining Statement of Assets and Liabilities -- December 31, 2003 (Unaudited) Pro Forma Combining Statement of Operations -- For the Year Ended December 31, 2003 (Unaudited) Pro Forma Combining Schedule of Portfolio Investments -- December 31, 2003 (Unaudited) MIT International Index Trust and JHVST International Equity Index Fund Pro Forma Financial Statements The Pro Forma Combining Statement of Operations set out below provides information about the impact of the proposed Reorganization by indicating how the Reorganization might have affected the Funds' results of operations if the Reorganization had been consummated as of December 31, 2002. The Pro Forma Combining Statement of Assets and Liabilities and Pro Forma Combining Schedule of Portfolio Investments show how the Reorganization might have affected the Funds' assets and liabilities if it had been consummated as of December 31, 2003. In each case the combined results give effect to the pro-forma adjustments described in the related footnotes. PRO FORMA COMBINING STATEMENT OF ASSETS AND LIABILITIES December 31, 2003 (Unaudited)
(000's Omitted) VST MIT International International Pro forma Equity Index Index Trust Adjustment Combined --------------------------------------------------------- Assets: Investments in securities, at value $ 167,180 $ 108,882 $ 276,062 (Cost: Target Fund - $142,128 Acquiring Fund - $87,510) Foreign currency at value 47 17 64 Receivable for: Investments sold 1 4 5 Fund shares sold 80 94 174 Income receivable 242 88 330 Futures contracts variation margin 9 5 14 Forward foreign currency exchange contracts sold 74 74 Foreign tax withholding reclaims 22 22 Other assets 7 1 8 --------------------------------------------------------- Total assets 167,639 109,113 276,753 --------------------------------------------------------- LIABILITIES Payables for: Collateral for securities on loan 8,571 9,718 18,289 Due to adviser 1 1 Forward foreign currency exchange contracts purchased 12 12 Other liabilities 20 18 38 ----------- ----------- ----------- Total liabilities 8,603 9,737 18,340 Net assets $ 159,037 $ 99,376 $ 258,413 =========== =========== =========== Composition of net assets: Capital paid-in $ 169,314 $ 105,335 $ 274,649 Accumulated net realized loss on investments, futures and foreign currency transactions (22,996) (4,586) (27,582) Undistributed net investment loss (421) (415) (836) Net unrealized appreciation (depreciation) of: Investments 13,002 (1,268) 11,734 Futures 79 195 274 Translation of assets and liabilities in foreign currencies 59 6 65 Capital shares at par value $.01 109 109 ----------- ----------- ----------- Net assets $ 159,037 $ 99,376 $ 258,413 =========== =========== =========== Outstanding Shares: NAV Shares $11,508,157 $ $11,508,157 Series I Shares - A 5,947,684 5,947,684 Series II Shares - B 1,243,084 1,243,084 Series I Shares - MIT International Index Trust - A $ 9,056,146 Series II Shares - MIT International Index Trust - B 1,891,983 Net asset value per share: NAV Shares $ 13.82 $ 13.82 Series I Shares - A - $ 13.82 Series II Shares - B - $ 13.82 Series I Shares - MIT International Index Trust - A $ 9.08 Series II Shares - MIT International Index Trust - B 9.08
A - Series I of the Acquired Fund are exchanged for Series I of the Acquiring Fund upon consummation of the reorganization. Initial per share values of Series I shares are presumed to equal that of NAV Shares. B - Series II of the Acquired Fund are exchanged for Series II of the Acquiring Fund upon consummation of the reorganization. Initial per share values of Series II shares are presumed to equal that of NAV Shares. PRO FORMA COMBINING STATEMENT OF OPERATIONS December 31, 2003 (Unaudited)
(000's Omitted) VST International MIT International Pro forma Equity Index Index Trust Adjustments Combined --------------------------------------------------------------- Investment Income: Interest $ 57 $ 100 $ $ 157 Dividends 2,738 1,739 4,477 Securities lending 146 41 187 Less Foreign taxes withheld (182) (182) ------------ ----------- -------- Total investment income 2,941 1,698 4,639 Expenses: Investment advisory fee 214 288 (231) A 271 Custodian fees 253 18 (244) B 27 Fund administration fees 8 (8) B - Audit & Legal fees 25 15 (10) B 30 Printing & mailing fees 10 6 (3) B 13 Registration and filing fees 1 (1) B - Trustees' fees 4 1 5 Other fees 10 2 (1) B 11 Distribution fee for Series I 91 91 Distribution fee for Series II 40 40 ------------ ----------- --------- -------- Total expenses 516 470 488 C Less expenses reimbursed (189) (15) -- ------------ ----------- --------- -------- Net expenses 327 455 (498) 488 ------------ ----------- -------- Net investment income 2,614 1,243 4,151 ------------ ----------- -------- Realized and Unrealized Gain (Loss) Net realized gain (loss) on: Investments (7,135) (133) (7,268) Financial futures contracts 282 1,406 1,688 Foreign currency transactions 516 (277) 239 Change in unrealized appreciation (depreciation) on: Investments 50,873 21,167 72,040 Futures 171 193 364 Translation of assets and liabilities in foreign currencies (4) (9) (13) ------------ ----------- -------- Net realized and unrealized gain 44,703 22,347 67,050 ------------ ----------- -------- Net increase in net assets resulting from operations $ 47,317 $ 23,590 $ 71,201 ============ =========== ========
A - Based on contract in effect for the Acquiring Fund. B - Decreases reflect the elimination of duplicative expenses achieved by merging the funds, and reduced custodian fees for the Acquiring Fund that became effective April 1, 2004. C - One time transaction fees relating directly to the Reorganization were not considered in the proforma statement of operations. Estimated one time transaction fees are $75,000 for each fund or $150,000 in total. PRO FORMA COMBINING SCHEDULE OF PORTFOLIO INVESTMENTS December 31, 2003 (Unaudited) The Schedule of Investments is a complete list of all the securities owned by the V.S.T. International Equity Index and the MIT International Index Trust, combined on December 31, 2003.
------------------------------------------------------------------------------------- VST INTERNATIONAL EQUITY INDEX MIT INTERNATIONAL INDEX TRUST PRO FORMA COMBINED ------------------------------------------------------------------------------------- MARKET VALUE NUMBER OF MARKET VALUE NUMBER OF MARKET VALUE Name of Issuer SHARES (000'S SHARES OR (000'S SHARES OR (000'S OMITTED) PAR VALUE OMITTED) PAR VALUE OMITTED) ------------------------------------------------------------------------------------- COMMON STOCK Australia - 3.9% # Alumina, Ltd. * 19,300 95 13,123 65 32,423 160 Amcor, Ltd. * 10,060 63 10,060 63 AMP, Ltd. 50,472 190 17,632 66 68,104 256 Ansell, Ltd. * 11,800 57 2,243 11 14,043 68 Aristocrat Leisure, Ltd. * 2,388 3 2,388 3 Austrailia Gas Light Company, Ltd. * 5,101 43 5,101 43 Australia and New Zealand Bank Group Ltd. * 20,981 279 20,981 279 Australian Stock Exchange, Ltd. * 1,311 17 1,311 17 BHP Steel * 33,357 141 9,229 39 42,586 180 Boral, Ltd. * 6,916 26 6,916 26 Brambles Industries, Ltd. * (a) 11,480 46 11,480 46 Broken Hill Proprietary Co., Ltd. * 78,691 722 43,744 401 122,435 1,123 Centro Props Group * 6,710 20 6,710 20 CFS Gandel Retail Trust * 13,880 14 13,880 14 Coca-Cola Amatil, Ltd. * 5,717 27 5,717 27 Cochlear, Ltd. * 563 9 563 9 Coles Myer, Ltd. * 23,600 134 12,639 72 36,239 206 Commonwealth Bank of Australia 27,670 614 14,641 325 42,311 939 Commonwealth Property Office Fund * 16,430 14 16,430 14 Computershare, Ltd. * 4,926 12 4,926 12 CSL, Ltd. * 2,600 35 1,843 25 4,443 60 CSR, Ltd. 65,000 91 9,889 14 74,889 105 David Jones, Ltd. * 2,251 2 2,251 2 Deutsche Office Trust * 14,906 12 14,906 12 Foster's Brewing Group, Ltd. * 39,000 132 25,387 86 64,387 218
Futuris Corp., Ltd. * 6,834 8 6,834 8 General Property Trust 168,892 380 22,880 51 191,772 431 Harvey Norman Holding, Ltd. * 5,707 13 5,707 13 HHG plc * 50,472 36 50,472 36 Iluka Resources, Ltd. * 2,500 8 2,500 8 Investa Property Group * 15,352 23 15,352 23 James Hardie Industries NV * 5,490 28 5,490 28 John Fairfax Holdings, Ltd. * 10,236 27 10,236 27 Leighton Holdings * 1,493 13 1,493 13 Lend Lease Corp. 10,600 80 4,246 32 14,846 112 Lion Nathan, Ltd. * 3,000 14 3,000 14 Macquarie Bank, Ltd. * 2,499 67 2,499 67 Macquarie Goodman * 15,874 20 15,874 20 Macquarie Infrastructure Group * 21,866 56 21,866 56 Mayne Nickless, Ltd. * 8,985 22 8,985 22 Mirvac Group * 7,935 26 7,935 26 National Australia Bank, Ltd. 31,556 712 17,545 396 49,101 1,108 Newcrest Mining, Ltd. * 3,890 38 3,890 38 News Corp., Ltd. 31,113 281 17,031 154 48,144 435 NRMA Insurance Group, Ltd. * 20,058 64 20,058 64 OneSteel, Ltd. 37,275 57 5,172 8 42,447 65 Orica, Ltd. 8,400 88 3,066 32 11,466 120 Origin Energy, Ltd. * 8,130 29 8,130 29 PaperlinkX, Ltd. * 4,733 18 4,733 18 Patrick Corp., Ltd. * 1,769 19 1,769 19 Publishing & Broadcasting, Ltd. * 1,585 15 1,585 15 QBE Insurance Group, Ltd. * 30,618 244 7,711 62 38,329 306 Rinker Group Ltd. 18,000 89 10,937 54 28,937 143 Rio Tinto, Ltd. 5,600 157 3,619 101 9,219 258 Santos, Ltd. * 39,200 203 6,535 34 45,735 237 Sonic Healthcare, Ltd. * 2,854 15 2,854 15 Sons Of Gwalia, Ltd. * 670 2 670 2 Southcorp, Ltd. * 6,901 14 6,901 14 Stockland 56,157 221 13,903 55 70,060 276 Suncorp-Metway, Ltd. * 6,181 58 6,181 58 Tab, Ltd. * 5,702 20 5,702 20 Tabcorp Holdings, Ltd. 16,400 139 4,739 40 21,139 179 Telstra Corp. * 43,000 156 25,507 93 68,507 249 Toll Holdings, Ltd. * 2,546 16 2,546 16 Transurban Group * 5,224 18 5,224 18
Wesfarmers, Ltd. * 4,374 87 4,374 87 Westfield Holdings, Ltd. * 5,050 53 5,050 53 Westfield Trust 142,560 382 25,433 68 167,993 450 Westpac Banking Corp., Ltd. * 31,200 376 20,984 253 52,184 629 WMC Resorces, Ltd. * 19,300 82 13,039 55 32,339 137 Woodside Petroleum, Ltd. * 5,389 60 5,389 60 Woolworths, Ltd. * 16,300 145 11,903 106 28,203 251 ------- -------- -------- 6,039 4,136 10,175 Austria - 0.2% # Bank Austria Creditanstalt * 2,049 105 469 24 2,518 129 Bohler Uddeholm AG 1,600 108 43 3 1,643 111 BWT AG 2,000 37 2,000 37 Erste Bank AG * 658 81 359 44 1,017 125 Flughafen Wien AG 2,178 102 119 5 2,297 107 Immofinanz Immobiien Anlage AG * 3,481 28 3,481 28 Mayr-Melnhof Karton AG * 68 8 68 8 Oesterreichische Elektrizitaets AG, Class A * 70 8 70 8 OMV AG * 154 23 154 23 RHI AG * (a) 94 2 94 2 Telekom Austria AG * 2,323 29 2,323 29 VA Technologie AG * 71 2 71 2 Voestalpine AG * 284 12 284 12 Wienerberger Baustoffindustrie AG * 300 8 300 8 ------- -------- -------- 433 196 629 Belgium - 1.0% # Agfa Gevaert NV * 1,360 39 1,360 39 Barco NV * 120 11 120 11 Bekaert NV 890 57 198 13 1,088 70 Cofinimmo SA * 40 5 40 5 Colruyt NV 970 93 190 18 1,160 111 Compagnie Maritime Belge SA 521 42 42 3 563 45 D' Ieteren SA 390 80 31 6 421 86 Delhaize SA 2,855 147 828 43 3,683 190 DEXIA * 7,205 124 7,439 128 14,644 252 Electrabel SA 254 80 348 109 602 189 Exmar SA * 521 22 521 22 Fortis * 13,470 271 11,983 241 25,453 512 GPE Bruxelles LAM 2,388 134 795 45 3,183 179
Interbew 5,301 141 1,734 46 7,035 187 KBC Bancassurance Holding NV 2,540 119 1,091 51 3,631 170 Mobistar SA * 249 14 249 14 NV Union Miniere SA 1,461 102 204 14 1,665 116 Omega Pharma SA * 277 9 277 9 Solvay SA 1,215 105 744 64 1,959 169 UCB SA * 3,900 147 1,078 41 4,978 188 -------- -------- -------- 1,664 900 2,564 Brazil - 0.0% # Aracruz Celulose SA - ADR * 1,500 55 1,500 55 Canada - 3.0% # Abitibi Consolidated, Inc. * 9,699 78 9,699 78 Alcan Aluminum, Ltd. 5,575 261 5,575 261 ATI Technologies, Inc. 5,104 77 5,104 77 Bank of Montreal 8,151 337 8,151 337 Bank Nova Scotia Halifax * 8,445 430 8,445 430 Barrick Gold Corp. 9,441 214 9,441 214 BCE, Inc. 5,282 118 5,282 118 Biovail Corp. * 2,999 65 2,999 65 Bombardier, Inc. - Cl.B * 27,549 117 27,549 117 Brascan Corp. - Cl. A 3,244 100 3,244 100 Brookfield Properties Corp. * 3,034 88 3,034 88 Canadian National Railway Co. 3,587 228 3,587 228 Canadian Natural Resources, Ltd. 2,759 139 2,759 139 Canadian Pacific Railway 4,175 118 4,175 118 Canadian Tire, Ltd. - Cl.A * 2,230 68 2,230 68 Canadian Imperial Bank of Commerce 6,082 301 6,082 301 Celestica, Inc. * 4,634 70 4,634 70 Cognos, Inc. * 1,996 61 1,996 61 CP Ships, Ltd. Common 3,706 77 3,706 77 Dofasco, Inc. 2,944 82 2,944 82 Enbridge, Inc. 2,600 108 2,600 108 Encana Corp. 8,422 332 8,422 332 Fairmont Hotels Resorts, Inc. 2,964 81 2,964 81 Goldcorp, Inc. 4,202 67 4,202 67 Great West Lifeco, Inc. 2,299 81 2,299 81 Husky Energy, Inc. 4,971 90 4,971 90 Imperial Oil, Ltd. 2,992 133 2,992 133
Inco, Ltd. * 3,788 151 3,788 151 Investors Group, Inc. * 3,075 74 3,075 74 Loblaw Co., Ltd. 2,200 114 2,200 114 Magna International, Inc. 1,687 136 1,687 136 MDS, Inc. * 4,378 68 4,378 68 Molson Cos., Ltd. 2,729 76 2,729 76 National Bank of Canada 3,571 119 3,571 119 Nexen, Inc. 3,127 114 3,127 114 Noranda, Inc. 6,028 96 6,028 96 Nortel Networks Corp. 70,287 299 70,287 299 Petro Canada 4,246 210 4,246 210 Placer Dome, Inc. 7,841 141 7,841 141 Potash Corp. of Saskatchewan, Inc. * 1,128 98 1,128 98 Power Corp. Canada 3,014 113 3,014 113 Power Financial Corp. 2,532 97 2,532 97 Royal Bank of Canada 10,639 509 10,639 509 Shaw Communications, Inc. 5,140 80 5,140 80 Shell Canada, Ltd. 2,271 108 2,271 108 Sun Life Financial, Inc. * 10,490 262 10,490 262 Suncor Energy , Inc. 8,607 216 8,607 216 Talisman Energy, Inc. 2,702 154 2,702 154 Teck Cominco, Ltd. 5,191 88 5,191 88 Thomson Corp. 4,493 164 4,493 164 Transalta Corp. 4,891 70 4,891 70 TransCanada Corp. 8,180 176 8,180 176 Weston George, Ltd. 1,156 93 1,156 93 -------- -------- 7,747 7,747 Czech Republic - 0.1% # Ceske Energeticke Zavody AS 21,600 123 21,600 123 Komercni Banka AS * 900 85 900 85 -------- -------- 208 208 Denmark - 0.6% # A P Moller- Maersk A/S * 16 115 13 94 29 209 AS Det Ostasiatiske Kompagni * - 213 9 213 9 Bang & Olufsen AS - B Series * - 100 4 100 4 Carlsberg AS, B Shares * - 300 14 300 14 Coloplast AS, Class B * - 125 11 125 11 Danisco AS 3,050 136 550 25 3,600 161
Danske Bank 8,587 201 5,900 138 14,487 339 DSV * - 200 9 200 9 FLS Industries AS, B Shares * - 200 2 200 2 GN Store Nord AS * - 2,323 15 2,323 15 Group 4 Falck * - 800 16 800 16 H. Lundbeck AS * - 938 16 938 16 ISS AS 1,650 81 500 25 2,150 106 Kobenhavn Lufthavne * - 70 8 70 8 NEG Micon AS * - 200 3 200 3 NKT Holding * - 100 2 100 2 Novo Nordisk AS 3,148 128 2,977 121 6,125 249 Novozymes AS 4,450 162 626 23 5,076 185 Tele Danmark AS 4,150 150 1,650 59 5,800 209 Topdanmark AS * - 300 16 300 16 Vestas Wind Systems AS 2,500 41 1,268 21 3,768 62 William Demant Holdings * - 300 10 300 10 -------- ------ -------- 1,014 641 1,655 Finland -1.3% # Amer Group, Ltd. * 300 13 300 13 Asko Oyj * 300 9 300 9 Elisa Corporation * 1,650 22 1,650 22 Fortum Corp. * 4,000 41 4,000 41 KCI Konecranes Oyj * 200 7 200 7 Kesko Oyj * 700 12 700 12 Kone Corp. * 420 24 420 24 Metra Oyj, B Shares * 400 8 400 8 Metso Oyj * 1,300 16 1,300 16 Nokia Oyj * 91,721 1,584 55,955 967 147,676 2,551 Nokian Renkaat Oyj * - 100 7 100 7 Orion, Series B * - 500 11 500 11 Outokumpu Oyj * - 1,100 15 1,100 15 Pohjola Group PLC * - 200 5 200 5 Rautaruukki Oyj * - 800 6 800 6 Sampo Insurance Co. plc 4,700 49 3,200 33 7,900 82 Stora Enso Oyj * 7,903 106 7,259 98 15,162 204 Tietoenator Oyj 1,338 37 901 25 2,239 62 UPM-Kymmene Corp. 7,900 150 6,100 116 14,000 266 -------- ------ -------- 1,926 1,435 3,361
France - 8.3% # Accor SA 4,483 203 2,180 99 6,663 302 Air France * - 917 14 917 14 Air Liquide 1,412 249 1,168 206 2,580 455 Air Liquide SA * - 580 102 580 102 Alcatel 23,577 303 14,207 183 37,784 486 Alstom * 3,692 6 3,692 6 Alstom * 2,424 - 2,424 - Alstom Subscription * 122 - 122 - Altran Technologies SA * 6,277 81 6,277 81 Areclor 7,731 135 7,731 135 Atos Origin SA * - 273 17 273 17 Autoroutes du Sud de la France * - 841 28 841 28 Aventis SA * 12,657 836 7,916 523 20,573 1,359 AXA * 27,474 587 16,448 352 43,922 939 BNP Paribas * 13,566 853 9,484 597 23,050 1,450 Bouygues SA * 3,607 126 2,331 81 5,938 207 Business Objects 1,259 44 803 28 2,062 72 Caisse Nationale du Credit Agricole * - 4,214 101 4,214 101 Cap Gemini SA * 1,627 72 1,247 55 2,874 127 Carrefour SA * 11,330 621 6,676 366 18,006 987 Casino Guichard-Perrachon SA 1,045 102 432 42 1,477 144 CIE De St. Gobain * 6,517 319 3,652 179 10,169 498 Club Mediterranee SA 838 31 101 4 939 35 Cnp Assurances * (a) - 400 21 400 21 Dassault Systemes SA * 1,995 91 649 30 2,644 121 EADS, Inc. 5,569 132 3,288 78 8,857 210 Essilor International 2,365 122 1,106 57 3,471 179 France Telecom 20,955 598 12,603 360 33,558 958 Gecina * - 179 26 179 26 Groupe Danone * 1,748 285 1,435 234 3,183 519 Hermes International * - 100 19 100 19 Imerys SA * - 94 20 94 20 Klepierre * - 250 15 250 15 Lafarge * - 494 44 494 44 Lafarge SA * 2,579 229 1,944 173 4,523 402 Lagardere SCA 3,125 180 1,433 83 4,558 263 L'Oreal SA 6,925 567 3,948 323 10,873 890 LVMH * (Louis Vuitton Moet Hennessy) 4,273 311 2,853 207 7,126 518 Michelin 3,462 159 1,624 74 5,086 233
Pechiney SA, Class A * - 729 45 729 45 Pernod Ricard 1,045 116 611 68 1,656 184 Peugoet SA 1,567 80 2,099 107 3,666 187 Pinault-Printemps-Redoute SA * 1,465 142 794 77 2,259 219 Publicis Groupe SA * 2,645 86 1,161 37 3,806 123 Renault 3,207 221 1,992 137 5,199 358 Sagem SA 731 78 239 26 970 104 Sanofi-Synthelabo SA * 7,657 576 4,269 321 11,926 897 Schneider SA * 4,580 299 2,406 157 6,986 456 Societe BIC SA 1,234 57 357 16 1,591 73 Societe Generale * 5,636 497 3,829 338 9,465 835 Societe Television Francaise 4,028 140 1,417 49 5,445 189 Sodexho Alliance * - 1,097 33 1,097 33 STMicroelectronics * 10,712 290 6,821 185 17,533 475 SUEZ 15,282 307 9,349 188 24,631 495 Technip SA * - 207 22 207 22 Thomson CFS 1,747 59 839 28 2,586 87 Thomson Multimedia * 2,834 60 2,761 59 5,595 119 Total Fina SA - Cl.B * 12,377 2,299 7,509 1,394 19,886 3,693 Unibail SA 1,797 168 458 43 2,255 211 Valeo SA 1,489 60 867 35 2,356 95 Veolia Environnement * - 2,814 76 2,814 76 Vinci SA * - 803 66 803 66 Vivendi Universal SA * - 10,617 258 10,617 258 Wanadoo * - 4,344 35 4,344 35 Zodiac SA * - 463 13 463 13 ------- ------- ------- 12,771 8,560 21,331 Germany - 5.8% # Adidas-Salomon AG 1,005 114 539 61 1,544 175 Aixtron AG * 607 4 607 4 Allianz AG * 4,706 593 3,353 423 8,059 1,016 Altana AG 1,460 88 842 51 2,302 139 BASF AG 12,086 679 6,322 355 18,408 1,034 Bayer AG * 11,401 333 7,649 224 19,050 557 Bayerische Vereinsbank AG * 6,678 154 4,240 98 10,918 252 Beiersdorf AG * 302 37 302 37 Celesio AG * 374 18 374 18 Commerzbank AG 8,364 164 5,044 99 13,408 263 Continental AG 2,656 101 1,361 52 4,017 153
DaimlerChrysler AG * 15,055 702 10,026 467 25,081 1,169 Deutsche Bank AG * 9,067 750 6,108 506 15,175 1,256 Deutsche Boerse AG 2,010 110 1,233 67 3,243 177 Deutsche Post AG 7,129 147 4,561 94 11,690 241 Deutsche Telekom AG * 37,337 683 29,354 537 66,691 1,220 Douglas Holding AG * 330 9 330 9 E.ON AG 9,846 642 7,257 473 17,103 1,115 Epcos AG * 574 13 574 13 Fresenius Medical Care AG 1,209 86 396 28 1,605 114 Heidelbergcement AG * 499 21 499 21 Henkel Kgaa-Vorzug * 685 54 685 54 Hypo Real Estate 3,568 89 1,492 37 5,060 126 Infineon Technologies AG * 8,538 118 5,447 76 13,985 194 Karstadt Quelle AG * 510 13 510 13 Linde AG 1,694 91 981 53 2,675 144 Lufthansa AG 4,687 78 2,285 38 6,972 116 MAN AG 2,695 82 1,194 36 3,889 118 Merck & Company, Inc. * 544 23 544 23 Metro AG 2,786 123 1,690 74 4,476 197 MLP AG * 659 13 659 13 Muenchener Rueckversicherungs-Gesellschaft AG * 2,643 320 1,737 210 4,380 530 ProSieben Sat.1 Media AG * 832 14 832 14 Puma AG 463 82 184 32 647 114 RWE AG 6,823 270 4,879 193 11,702 463 SAP AG * 3,683 618 2,387 400 6,070 1,018 Schering AG * 3,162 160 1,929 98 5,091 258 Siemens AG * 16,196 1,296 9,338 747 25,534 2,043 Suedzucker AG * 550 10 550 10 Thyssen Krupp AG * 6,252 123 3,702 73 9,954 196 Tui AG 3,781 79 1,512 31 5,293 110 Volkswagen AG 3,711 206 2,610 145 6,321 351 WCM Beteilgungs & Grundbesitz AG * 1,700 2 1,700 2 Wella AG * 163 14 163 14 ------- ------- -------- 9,081 6,023 15,104 Greece - 0.4% # Alpha Bank * 1,900 57 1,900 57 Attica Enterprises Holding SA * 700 4 700 4 Bank of Piraeus 8,434 101 1,600 19 10,034 120 Commercial Bank of Greece 3,706 93 700 18 4,406 111
Duty Free Shops * 270 5 270 5 EFG Eurobank 8,088 156 2,210 43 10,298 199 Folli-Follie SA * 100 3 100 3 Greek Organization of Football Prognostics * 1,790 26 1,790 26 Hellenic Bottling Co. SA 5,160 108 810 17 5,970 125 Hellenic Petroleum SA * 1,200 11 1,200 11 Hellenic Technodomiki Tev SA * 500 3 500 3 Hellenic Telecommunications Organization SA * 3,040 40 3,040 40 Intracom SA 5,252 36 1,100 7 6,352 43 National Bank Of Greece * 2,162 56 2,162 56 Public Power Corp. * 1,180 29 1,180 29 Techniki Olympiaki SA * 600 3 600 3 Titan Cement Co. SA 2,217 91 340 14 2,557 105 Viohalco * 1,130 7 1,130 7 Vodafone Panafon SA * 15,869 123 2,000 16 17,869 139 ------ ----- ------ 708 378 1,086 Hong Kong - 1.5% # 0 - ASM Pacific Technology, Ltd. * 0 2,000 9 2,000 9 Bank of East Asia * 0 16,000 49 16,000 49 Beijing Datang Power Generation Co., Ltd. 263,000 188 - 263,000 188 BOC Hong Kong Holdings, Ltd. * 0 30,000 57 30,000 57 Cathay Pacific Airways 20,000 38 12,000 23 32,000 61 Cheung Kong Holdings, Ltd. * 0 18,000 143 18,000 143 Cheung Kong Infrastructure Holdings, Ltd. * 0 6,000 13 6,000 13 China Southern Airlines Co. Ltd * 207,000 89 - 207,000 89 China Telecom, Ltd. * 16,199 50 - 16,199 50 CLP Holdings, Ltd. 42,100 200 20,900 99 63,000 299 Esprit Holdings, Ltd. * 0 7,500 25 7,500 25 Giordano International, Ltd. * 0 20,000 9 20,000 9 Guangshen Railway Co., Ltd. * 499,000 141 - 499,000 141 Hang Lung Properties, Ltd. * 0 13,000 17 13,000 17 Hang Seng Bank, Ltd. * 25,000 328 9,000 118 34,000 446 Henderson Land Development Co., Ltd. * 22,000 97 8,000 35 30,000 132 Hong Kong & China Gas Company, Ltd. * 0 42,490 65 42,490 65 Hong Kong Electric Holdings, Ltd. * 0 16,500 65 16,500 65 Hong Kong Exchange & Clearing, Ltd. * 0 12,000 26 12,000 26 Hopewell Highway * 0 700 - 700 - Hopewell Holdings, Ltd. * 0 7,000 11 7,000 11 HSBC Holdings plc 4,900 77 - 4,900 77
Hutchison Whampoa, Ltd. * 41,500 305 24,800 182 66,300 487 Hysan Development Company, Ltd. * 0 6,000 9 6,000 9 Island Cable Communications * 6,200 1 1,200 - 7,400 1 Johnson Electric Holdings, Ltd. * 33,000 42 18,000 23 51,000 65 Legend Holdings * 122,000 52 - 122,000 52 Li & Fung, Ltd. * 36,000 62 18,000 31 54,000 93 MTR Corp. * 0 15,500 21 15,500 21 New World Development Co., Ltd. 48,000 39 19,000 15 67,000 54 PCCW, Ltd. 31,876 21 36,984 24 68,860 45 Shangri-La Asia, Ltd. * 0 12,000 11 12,000 11 Sino Land Company, Ltd. * 0 16,000 9 16,000 9 Smartone Telecommunications Holdings, Ltd. * 0 5,000 5 5,000 5 South China Morning Post, Ltd. * 0 10,000 4 10,000 4 Sun Hung Kai Properties, Ltd. * 46,000 379 15,000 124 61,000 503 Swire Pacific, Ltd. - Cl. A * 23,500 145 11,000 68 34,500 213 Techtronic Industries Company, Ltd. * 0 5,500 15 5,500 15 Television Broadcast, Ltd. * 0 3,000 15 3,000 15 Texwinca Holdings, Ltd. * 0 8,000 6 8,000 6 Wharf Holdings, Ltd. 62,000 172 14,000 39 76,000 211 ----------- ----------- ---------- 2,426 1,365 3,791 Hungary - 0.1% # Gedeon Richter * 900 106 900 106 Mol Magyar Olaj-es Gazipari 3,600 109 3,600 109 OTP Bank 10,900 140 10,900 140 ----------- ---------- 355 355 Ireland - 0.6% # 0 - Allied Irish Banks PLC - London * - 6,345 101 6,345 101 Allied Irish Banks plc * 8,467 135 3,649 58 12,116 193 Bank of Ireland 17,060 233 10,930 149 27,990 382 Bank of Ireland - London * - 405 6 405 6 CRH PLC - London * - 4,171 85 4,171 85 CRH plc * 9,000 185 1,944 40 10,944 225 DCC PLC * - 400 5 400 5 DCC PLC-GBP * - 627 9 627 9 Elan Corp. 5,813 40 4,143 29 9,956 69 Fyffes * - 4,000 8 4,000 8 Grafton Group * - 2,000 14 2,000 14
Greencore Group * - 1,069 5 1,069 5 Greencore Group PLC * - 1,300 6 1,300 6 Independent News & Media * - 6,463 15 6,463 15 Independent News & Media PLC * - 520 1 520 1 Irish Life & Permanent plc 4,553 73 3,142 51 7,695 124 Kerry Group * - 800 15 800 15 Kerry Group plc 5,800 109 815 15 6,615 124 Ryanair Holdings 4,845 40 - 4,845 40 Ryanair Holdings PLC * - 1,939 16 1,939 16 Waterford Wedgewood * - 700 - 700 - Waterford Wedgewood PLC * - 8,769 2 8,769 2 ----------- ---------- ---------- 815 630 1,445 Israel - 0.2% # Bank Hapoalim 43,700 108 43,700 108 Bezeq Israeli Telecommunication Corp., Ltd. 23,600 27 23,600 27 IDB Holding Corp., Ltd. 5,100 100 5,100 100 Koor Industries, Ltd. * 83 3 83 3 Makteshim-Agan Industries, Ltd. 26,900 101 26,900 101 Teva pharmaceutical Industries, Ltd. * 5,200 296 5,200 296 ----------- ---------- 635 635 Italy - 3.2% # Alleanza Assicurazioni * 9,339 102 5,390 59 14,729 161 Assicurazioni Generali * 15,818 418 11,175 296 26,993 714 Autogrill SpA 5,723 82 1,307 19 7,030 101 Banca Fideuram 15,000 89 3,445 20 18,445 109 Banca Intesa SpA 76,966 301 41,262 161 118,228 462 Banca Intesa SPA - Non convertible * - 11,151 32 11,151 32 Banca Nazionale del Lavoro 41,580 99 17,775 42 59,355 141 Banca Popolare di Milano 18,100 118 4,533 30 22,633 148 BCA Di Roma * 31,073 91 14,103 41 45,176 132 BCE Pop Unite 7,459 135 - 7,459 135 BCP Pop Veron 8,371 142 4,267 72 12,638 214 Benetton Group SPA * - 631 7 631 7 Bulgari SPA * - 1,750 16 1,750 16 Enel SpA * 30,057 204 28,367 193 58,424 397 ENI * 52,773 995 30,411 573 83,184 1,568 Fiat SPA - DI RISP (Non Convertible) * - 680 3 680 3 Fiat SpA * 13,040 100 4,217 32 17,257 132
Finecogroup SPA * - 17,785 12 17,785 12 Finmeccanica SA 145,025 113 68,235 53 213,260 166 Gruppo Editoriale L'Espresso SPA * - 1,900 12 1,900 12 Italcementi SPA * - 854 11 854 11 Luxottica Group 4,176 72 1,621 28 5,797 100 Mediaset SpA * 13,210 157 6,979 83 20,189 240 Mediobanca SpA 11,141 121 5,396 58 16,537 179 Mediolanum SPA * - 2,775 22 2,775 22 Mondadori (Arnoldo) Editore SPA * - 1,400 13 1,400 13 Monte Paschi Siena 29,322 93 12,639 40 41,961 133 Parmalat Finanziaria SPA * - 4,047 1 4,047 1 Pirelli & Co SPA * - 20,319 21 20,319 21 Riunione Adriatica di Sicorta SpA 5,255 89 3,513 60 8,768 149 San Paolo-IMI SpA 7,083 92 11,816 154 18,899 246 Seat Pagine Gialle * 80,911 77 38,084 36 118,995 113 Snam Rete Gas SPA * - 10,081 43 10,081 43 Snia SPA * - 3,000 7 3,000 7 Telecom Italia 168,243 498 84,977 252 253,220 750 Telecom Italia 98,642 201 74,975 153 173,617 354 Telecom Italia Media * - 14,446 7 14,446 7 Telecom Italia Mobile SpA 69,129 375 44,093 239 113,222 614 Tiscali SPA * - 2,417 17 2,417 17 UniCredito Italiano SpA * 64,732 349 44,136 238 108,868 587 ---------- ---------- ---------- 5,113 3,156 8,269 Japan - 18.2% # 0 - Acom Co., Ltd. * 2,300 104 840 38 3,140 142 Aderans Company, Ltd. * - 400 6 400 6 Advantest 2,000 159 800 63 2,800 222 Aeon Credit Service Company, Ltd. * - 300 13 300 13 Aiful Corp. * 1,000 73 500 37 1,500 110 Ajinomoto Co., Inc. 12,000 138 6,000 69 18,000 207 All Nippon Airways Company, Ltd. * - 5,000 12 5,000 12 Alps Electric Co. 6,000 88 2,000 29 8,000 117 Amada Company, Ltd. * - 3,000 16 3,000 16 Anritsu Corp. * - 1,000 7 1,000 7 Aoyama Trading Company * - 600 12 600 12 Ariake Japan Company, Ltd. * - 200 6 200 6 Asahi Breweries, Ltd. 13,000 119 4,500 41 17,500 160 Asahi Chemical Industry Co., Ltd. 26,000 141 14,000 76 40,000 217
Asahi Glass Co., Ltd. 18,000 148 9,000 74 27,000 222 ASATSU-DK, Inc. * - 300 8 300 8 Ashikaga Financial Group, Inc. * - 9,000 - 9,000 - Autobacs Seven Company * - 400 9 400 9 Bandai Company * - 800 20 800 20 Bank of Yokohama, Ltd. * 23,000 107 11,000 51 34,000 158 Bellsystem24, Inc. * - 30 6 30 6 Benesse Corp. * - 800 20 800 20 Bridgestone Corp. 13,000 175 8,000 108 21,000 283 Canon, Inc. * 13,000 606 10,000 466 23,000 1,072 Capcom Company, Ltd. * - 300 4 300 4 Casio Computer Co. 9,000 95 2,000 21 11,000 116 Central Glass Company * - 2,000 13 2,000 13 Central Japan Railway Co. 13 112 11 95 24 207 Chiba Bank, Ltd. 16,000 66 7,000 29 23,000 95 Chichibu Onoda Cement * - 10,000 28 10,000 28 Chubu Electric Power 10,100 211 7,300 152 17,400 363 Chugai Pharmaceutical Co., Ltd. 7,600 109 3,200 46 10,800 155 Citizen Watch Co., Ltd. 10,000 92 3,000 28 13,000 120 Coca-Cola West Japan Company, Ltd. * - 400 8 400 8 Comsys Holdings * 5,000 32 1,000 6 6,000 38 Credit Saison Co., Ltd. 3,600 81 1,600 36 5,200 117 CSK Corp. * 2,100 76 700 25 2,800 101 Daicel Chemical Industries, Ltd. * - 3,000 12 3,000 12 Daido Life Insurance 25 74 14 42 39 116 Daiei, Inc. * - 2,000 4 2,000 4 Dai-Ichi Pharmaceutical Co., Ltd. 7,000 126 2,800 50 9,800 176 Daikin Industries, Ltd. 5,000 116 2,000 46 7,000 162 Daimaru, Inc. * - 3,000 17 3,000 17 Dainippon Ink & Chemicals, Inc. * - 8,000 15 8,000 15 Dai-Nippon Printng Co., Ltd. 13,000 183 7,000 98 20,000 281 Dainippon Screen Manufacturing Company, Ltd. * - 2,000 14 2,000 14 Daito Trust Construction Co., Ltd. 2,300 68 1,100 33 3,400 101 Daiwa Bank Holdings 92,000 116 53,000 67 145,000 183 Daiwa House Industry Co., Ltd. 10,000 106 5,000 53 15,000 159 Daiwa Securities Group, Inc. 2,900 20 14,000 95 16,900 115 Denki Kagaku Kogyo Kabushiki Kaisha * - 5,000 16 5,000 16 Denso Corp. 8,400 165 5,700 112 14,100 277 Dentsu, Inc. * - 3 15 3 15 Dowa Mining Company, Ltd. * - 3,000 16 3,000 16
East Japan Railway Co. 60 283 40 189 100 472 Ebara Corp. * - 3,000 13 3,000 13 Eisai Company * 4,900 132 2,600 70 7,500 202 Familymart Company, Ltd. * - 800 18 800 18 Fanuc, Ltd. * 2,400 144 1,400 84 3,800 228 Fast Retailing Co. 1,100 67 600 36 1,700 103 Fuji Electric Holdings * - 7,000 15 7,000 15 Fuji Photo Film Company, Ltd. * 9,000 291 5,000 162 14,000 453 Fuji Television Network, Inc. * - 3 16 3 16 Fujikura, Ltd. * - 4,000 24 4,000 24 Fujisawa Pharmeceutical Co., Ltd. * 7,000 149 3,000 64 10,000 213 Fujitsu, Ltd. * 33,000 195 19,000 112 52,000 307 Furukawa Electric Company, Ltd. * - 7,000 23 7,000 23 Gunma Bank * - 4,000 18 4,000 18 Gunze, Ltd. 14,000 63 2,000 9 16,000 72 Hankyu Department Stores * - 2,000 13 2,000 13 Hino Motors, Ltd. * - 3,000 21 3,000 21 Hirose Electric Co., Ltd. * 1,100 126 300 34 1,400 160 Hitachi Cable, Ltd. * - 2,000 8 2,000 8 Hitachi Chemical * - 1,300 22 1,300 22 Hitachi Software Engineering Company, Ltd. * - 300 8 300 8 Hitachi, Ltd. 54,000 326 33,000 199 87,000 525 Hokugin Financial * - 10,000 14 10,000 14 Honda Motor Co. 14,300 635 9,100 404 23,400 1,039 House Food Corp. * - 800 9 800 9 Hoya Corp. * 200 18 1,300 119 1,500 137 Isetan Company, Ltd. * - 1,800 20 1,800 20 Ishihara Sangyo * (a) - 4,000 8 4,000 8 Ishikawajima Harima Heavy Industries Company, Ltd. * - 12,000 17 12,000 17 Itochu Corp. 34,000 112 16,000 53 50,000 165 Itochu Techno-Science Corp. * - 300 9 300 9 ITOEN, Ltd. * - 300 13 300 13 Ito-Yokado Co., Ltd. * 7,000 220 4,000 126 11,000 346 Jafco Company, Ltd. * - 300 24 300 24 Japan Airlines System Corp. * - 8,000 21 8,000 21 Japan Real Estate Investment * - 3 19 3 19 Japan Tobacco, Inc. 21 154 8 59 29 213 JFE Holdings, Inc. * 8,800 240 5,400 147 14,200 387 JGC Corp. * - 2,000 21 2,000 21 Joyo Bank, Ltd. 29,000 95 8,000 26 37,000 121
JSR Corp. 4,000 89 2,000 45 6,000 134 Jusco Co., Ltd. 4,800 161 2,700 90 7,500 251 Kajima Corp. 25,000 81 10,000 32 35,000 113 Kaken Pharmaceutical Company, Ltd. * - 1,000 5 1,000 5 Kamigumi Company * - 3,000 21 3,000 21 Kanebo * - 3,000 3 3,000 3 Kaneka Corp. * - 3,000 22 3,000 22 Kansai Electric Power Co., Inc. 800 14 7,900 138 8,700 152 KAO Corp. 10,000 203 6,000 122 16,000 325 Katokichi Company * - 500 8 500 8 Kawasaki Heavy Industries, Ltd. * - 13,000 16 13,000 16 Kawasaki Kisen 23,000 114 5,000 25 28,000 139 Keihin Electric Express Railway Co., Ltd. 17,000 100 5,000 29 22,000 129 Keio Teito Electric Railway 14,000 73 6,000 31 20,000 104 Keyence Corp. 700 148 400 84 1,100 232 Kikkoman Corp. * - 1,000 7 1,000 7 Kinden Corp. * - 2,000 9 2,000 9 Kinki Nippon Railway 33,000 99 17,000 51 50,000 150 Kirin Brewery Co. * 14,000 119 8,000 68 22,000 187 Kokuyo Company, Ltd. * - 600 7 600 7 Komatsu 28,000 178 11,000 70 39,000 248 Komori Corp. * - 1,000 15 1,000 15 Konami Co., Ltd. 3,000 87 1,000 29 4,000 116 Konica Corp. 11,000 148 4,500 61 15,500 209 Koyo Seiko Company * - 1,000 10 1,000 10 Kubota Corp. * 25,000 103 11,000 45 36,000 148 Kuraray Co., Ltd. 10,000 84 4,000 34 14,000 118 Kurita Water Industries, Ltd. * - 1,000 12 1,000 12 Kyocera Corp. * 3,300 220 1,900 127 5,200 347 Kyowa Hakko Kogyo * - 4,000 25 4,000 25 Kyushu Electric Power 6,300 108 4,700 81 11,000 189 Lawson 1,600 55 700 24 2,300 79 Mabuchi Motor Co. * 900 69 300 23 1,200 92 Makita Corp. * - 1,000 10 1,000 10 Marubeni Corp. 38,000 73 15,000 29 53,000 102 Marui Co., Ltd. * 10,000 126 4,000 50 14,000 176 Matsumotokiyoshi Co * - 200 4 200 4 Matsumotokiyoshi Company, Ltd. * - 200 4 200 4 Matsushita Electric Industrial Co. * 27,000 374 24,000 332 51,000 706 Matsushita Electric Works 10,000 90 5,000 45 15,000 135
Meiji Milk Product * - 2,000 9 2,000 9 Meiji Seika Kaisha, Ltd. * - 3,000 12 3,000 12 Meitec Corp. * - 400 15 400 15 Millea Holdings, Inc. * 23 301 17 222 40 523 Minebea Co., Ltd. 12,000 61 4,000 20 16,000 81 Mitsubishi Chemical Corp. 43,000 112 19,000 49 62,000 161 Mitsubishi Corp. 3,000 32 12,000 127 15,000 159 Mitsubishi Electric Corp. 43,000 179 20,000 83 63,000 262 Mitsubishi Estate Co., Ltd. * 19,000 180 11,000 104 30,000 284 Mitsubishi Gas Chemical Company, Inc. * - 4,000 14 4,000 14 Mitsubishi Heavy Industries, Ltd. * 58,000 161 33,000 92 91,000 253 Mitsubishi Logistc Corp. * - 1,000 8 1,000 8 Mitsubishi Materials Corp. * - 11,000 17 11,000 17 Mitsubishi Paper Company * - 2,000 3 2,000 3 Mitsubishi Rayon Company, Ltd. * - 6,000 23 6,000 23 Mitsubishi Tokyo Finance 73 570 47 367 120 937 Mitsui & Co., Ltd. 1,000 8 14,000 113 15,000 121 Mitsui Engineering & Shipbuilding Company, Ltd. * - 8,000 13 8,000 13 Mitsui Fudosan Co., Ltd. * 15,000 136 8,000 72 23,000 208 Mitsui Marine & Fire Insurance Co., Ltd. 23,000 189 15,000 123 38,000 312 Mitsui Mining & Smelting Co., Ltd. * 17,000 71 6,000 25 23,000 96 Mitsui OSK Lines, Ltd. 24,000 117 9,000 44 33,000 161 Mitsui Petrochemical Co. 18,000 105 6,000 35 24,000 140 Mitsui Trust Holdings 17,000 95 6,000 34 23,000 129 Mitsukoshi, Ltd. * - 3,000 12 3,000 12 Mitsumi Electric Company, Ltd. * - 900 10 900 10 Mizuho Financial GB * 110 334 56 170 166 504 Murata Manufacturing Co., Ltd. * 4,600 249 2,600 141 7,200 390 Namco, Ltd. * - 400 11 400 11 NEC Corp. * 29,000 214 17,000 125 46,000 339 Net One Systems Company, Ltd. * - 2 15 2 15 NGK Insulators, Ltd. * - 3,000 22 3,000 22 NGK Spark Plug Company * - 2,000 16 2,000 16 Nichii Gakkan Company * - 200 11 200 11 Nichirei Corp. * - 3,000 10 3,000 10 Nidec Corp. * 900 86 400 38 1,300 124 Nikko Securities Co., Ltd. * 28,000 156 15,000 84 43,000 240 Nikon Corp. 8,000 121 3,000 45 11,000 166 Nintendo Corp., Ltd. 2,100 196 1,200 112 3,300 308 Nippon Building Fund 11 71 2 13 13 84
Nippon Express Co., Ltd. 22,000 104 9,000 43 31,000 147 Nippon Kayaku Company, Ltd. * - 2,000 10 2,000 10 Nippon Meat Packer * - 2,000 20 2,000 20 Nippon Mining Holdings, Inc. * - 6,000 21 6,000 21 Nippon Oil Corp. 36,000 183 15,000 76 51,000 259 Nippon Sanso Corp. * - 2,000 8 2,000 8 Nippon Sheet Glass * - 5,000 15 5,000 15 Nippon Shokubai Company, Ltd. * - 2,000 15 2,000 15 Nippon Steel Co. 19,000 41 63,000 135 82,000 176 Nippon Telegraph & Telephone Corp. * 95 458 61 294 156 752 Nippon Unipac Holding, Co. 27 139 10 52 37 191 Nippon Yusen Kabushiki Kaisha 27,000 122 11,000 50 38,000 172 Nishimatsu Construction Company, Ltd. * - 3,000 10 3,000 10 Nissan Chemical Industries, Ltd. * - 2,000 18 2,000 18 Nissan Motor Acceptance Corp. 45,700 522 29,000 331 74,700 853 Nisshin Flour Mill * - 2,000 18 2,000 18 Nisshinbo Industries, Inc. * - 2,000 11 2,000 11 Nissin Food Products * - 1,000 25 1,000 25 Nitto Denko Corp. * 3,200 170 1,800 96 5,000 266 Nomura Research Institute, Ltd. * - 300 29 300 29 Nomura Securities Co., Ltd. * 33,000 562 21,000 358 54,000 920 Noritake Company * - 1,000 4 1,000 4 NSK, Ltd. * - 5,000 18 5,000 18 NTN Corp. 13,000 62 5,000 24 18,000 86 NTT Data Corp. 33 125 15 57 48 182 NTT Mobile Communications Network, Inc. * 317 719 205 465 522 1,184 Obayashi Corp. 16,000 72 7,000 31 23,000 103 OBIC Co., Ltd. * - 100 20 100 20 Oji Paper Co. 17,000 110 9,000 58 26,000 168 Oki Electric Industry Co. * 16,000 63 6,000 23 22,000 86 Okumura Corp. * - 2,000 9 2,000 9 Olympus Optical Co. * 6,000 130 2,000 43 8,000 173 Omron Corp. 5,000 102 2,400 49 7,400 151 Onward Kashiyama Company, Ltd. * - 1,000 12 1,000 12 Oracle Corp. * - 400 21 400 21 Oriental Land Co., Ltd. 2,000 123 600 37 2,600 160 Orix Corp. * 2,100 174 1,000 83 3,100 257 Osaka Gas Co. 42,000 114 24,000 65 66,000 179 Pioneer Corp. * 5,000 138 1,800 50 6,800 188 Promise Co., Ltd. * 2,600 113 1,050 46 3,650 159
Q.P. Corp. * - 1,500 12 1,500 12 Ricoh Co., Ltd. 13,000 257 7,000 138 20,000 395 Rohm Co., Ltd. * 2,100 246 1,200 141 3,300 387 Saizeriya Company, Ltd. * - 200 2 200 2 Sanden Corp. * - 1,000 6 1,000 6 Sankyo Co., Ltd. * 7,700 145 4,200 79 11,900 224 Sankyo Company * - 500 16 500 16 Sanyo Electric Co. * 32,000 167 18,000 94 50,000 261 Sapporo Holdings * - 4,000 11 4,000 11 Secom Company, Ltd. * 4,500 168 2,500 93 7,000 261 SEGA Enterprises * - 1,300 12 1,300 12 Seiko Epson Corp. * - 700 33 700 33 Seino Transportation * - 2,000 17 2,000 17 Sekisui Chemical Company, Ltd. * - 5,000 25 5,000 25 Sekisui House, Ltd. * 13,000 134 6,000 62 19,000 196 Seven-Eleven Japan * 8,000 243 5,000 152 13,000 395 Sharp Corp. 18,000 284 10,000 158 28,000 442 Shimachu Company, Ltd. * - 600 12 600 12 Shimamura Company * - 300 20 300 20 Shimano, Inc. * - 800 17 800 17 Shimizu Corp. * - 6,000 23 6,000 23 Shin-Etsu Chemical Co. * 6,600 270 4,200 172 10,800 442 Shionogi & Co., Ltd. * 8,000 149 3,000 56 11,000 205 Shiseido Co., Ltd. * 8,000 97 4,000 49 12,000 146 Shizuoka Bank, Ltd. 13,000 96 7,000 52 20,000 148 Showa Denko KK * - 11,000 25 11,000 25 Showa Shell Sekiyu * - 1,400 11 1,400 11 Skylark Company * - 1,000 17 1,000 17 SMC Corp. * 1,400 174 600 75 2,000 249 Snow Brand Milk * - 1,000 3 1,000 3 Softbank Corp. 3,900 119 2,400 73 6,300 192 Sony Corp. * 16,400 568 10,200 353 26,600 921 Stanley Electric 3,800 74 1,700 33 5,500 107 Sumitomo Bakelite Company, Ltd. * - 2,000 13 2,000 13 Sumitomo Chemical Co. 26,000 107 13,000 54 39,000 161 Sumitomo Corp. * 20,000 149 8,000 60 28,000 209 Sumitomo Electric Industries 15,000 134 7,000 63 22,000 197 Sumitomo Heavy Industries, Ltd. * - 6,000 14 6,000 14 Sumitomo Metal Industries 102,000 101 39,000 39 141,000 140 Sumitomo Metal Mining Co. 17,000 126 6,000 45 23,000 171
Sumitomo Mitsui GR 71 378 44 235 115 613 Sumitomo Osaka Cement Company, Ltd. * - 4,000 8 4,000 8 Sumitomo Realty & Development 8,000 70 4,000 35 12,000 105 Sumitomo Trust & Banking 23,000 135 11,000 65 34,000 200 Suruga Bank * - 2,000 13 2,000 13 Suzuken Company, Ltd. * - 500 16 500 16 Taisei Corp. 20,000 73 9,000 33 29,000 106 Taisho Pharmaceutical Co., Ltd. * 5,000 89 2,000 36 7,000 125 Taiyo Yuden Company * - 1,000 13 1,000 13 Takara Holdings * - 2,000 19 2,000 19 Takashimaya Co. * 9,000 64 3,000 21 12,000 85 Takeda Chemical Industries * 15,100 599 9,800 389 24,900 988 Takefuji Corp. * 2,020 94 740 35 2,760 129 Takuma Company * - 1,000 5 1,000 5 TDK Corp. * 2,400 173 1,300 94 3,700 267 Teijin, Ltd. 25,000 74 9,000 26 34,000 100 Teikoku Oil Company * - 2,000 10 2,000 10 Terumo Corp. * 5,200 99 1,900 36 7,100 135 The 77th Bank, Ltd. * - 4,000 23 4,000 23 The Bank of Fukuoka, Ltd. 20,000 84 6,000 25 26,000 109 THK Company, Ltd. * - 1,100 22 1,100 22 TIS, Inc. * - 400 14 400 14 Tobu Railway Co., Ltd. 22,000 79 9,000 32 31,000 111 Toda Corp. * - 2,000 6 2,000 6 Toho Company * - 1,500 19 1,500 19 Tohoku Electric Power 6,700 111 5,000 83 11,700 194 Tokyo Broadcasting Company * - 400 6 400 6 Tokyo Electric Power 19,700 432 13,400 294 33,100 726 Tokyo Electron, Ltd. * 3,100 236 1,700 129 4,800 365 Tokyo Gas Co. 47,000 168 29,000 103 76,000 271 Tokyo Style Co. 6,000 65 1,000 11 7,000 76 Tokyu Corp. * 26,000 133 11,000 56 37,000 189 Tonengeneral Sekiyu 8,000 66 3,000 25 11,000 91 Toppan Printing Co. * 16,000 167 6,000 62 22,000 229 Toray Industries, Inc. * 33,000 138 14,000 59 47,000 197 Toshiba Corp. * 54,000 205 32,000 121 86,000 326 Toshiba Corp. * - 5,000 17 5,000 17 Tostem Corp. 6,000 116 3,000 58 9,000 174 Toto, Ltd. 8,000 68 4,000 34 12,000 102 Toyo Seikan Kaisha * - 2,000 28 2,000 28
Toyo Suisan Kaisha * - 1,000 11 1,000 11 Toyobo Co. 32,000 70 7,000 15 39,000 85 Toyoda Gosei * - 600 17 600 17 Toyota Industries Corp. * - 1,900 40 1,900 40 Toyota Motor Corp. * 48,300 1,632 31,600 1,068 79,900 2,700 Trend Micro, Inc. * - 1,000 27 1,000 27 UBE Industries * - 9,000 18 9,000 18 UFJ Holdings, Inc. * 67 322 41 197 108 519 UNI Charm Corp. * - 500 25 500 25 UNY Company, Ltd. * - 2,000 21 2,000 21 Ushio, Inc. 3,000 50 1,000 17 4,000 67 Uss Co., Ltd. * - 220 16 220 16 Wacoal Corp. * 8,000 66 1,000 8 9,000 74 West Japan Railway 25 98 13 51 38 149 World Company * - 400 13 400 13 Yakult Honsha Company * - 1,000 16 1,000 16 Yamada Denki Co. 2,300 77 900 30 3,200 107 Yamaha Corp. 3,800 75 1,800 35 5,600 110 Yamaha Motor Company, Ltd. * - 1,000 11 1,000 11 Yamanouchi Pharmaceutical Co., Ltd. * 6,200 193 3,600 112 9,800 305 Yamato Transport Co., Ltd. 12,000 141 5,000 59 17,000 200 Yamazaki Baking Company * - 2,000 17 2,000 17 Yasuda F & M Insurance 15,000 123 9,000 74 24,000 197 Yokogawa Electric 8,000 116 2,000 29 10,000 145 ----------- ----------- ----------- 28,649 18,275 46,924 Luxembourg - 0.0% # Areclor * 3,986 69 3,986 69 Malaysia - 0.3% # 0 - Berjaya Sports Toto Berhad 39,000 42 39,000 42 Commerce Asset Holdings * 44,000 48 44,000 48 Gamuda Berhad 22,000 37 22,000 37 IJM Corporation Berhad 19,000 23 19,000 23 IJM Plantations 7,600 2 7,600 2 Malayan Banking Berhad * 66,000 168 66,000 168 Malaysia International Shipping Berhad 27,000 82 27,000 82 Public Bank Berhad 91,250 74 91,250 74 Resorts World Berhad * 21,000 56 21,000 56 Sime Darby Berhad * 68,000 93 68,000 93
Telekom Malaysia Berhad 40,000 88 40,000 88 Tenaga Nasional Berhad 28,000 70 28,000 70 YTL Corp., Berhad 76,460 87 76,460 87 ----------- ----------- 870 870 Mexico - 0.4% # America Movil SA de CV -Ser. L * 162,000 223 162,000 223 Cemex SA de CV * 24,000 125 24,000 125 Cifra SA de CV - Ser. V * 30,000 86 30,000 86 Fomento Economico Mexicano SA de CV * 20,000 74 20,000 74 GF BBVA Bancomer - Ser. B 70,000 60 70,000 60 Grupo Carso SA de CV - Ser. A1 * 16,000 56 16,000 56 Grupo Modelo SA de CV - Ser. C * 34,000 81 34,000 81 Grupo Televisa SA 54,000 108 54,000 108 Kimberly-Clark de Mexico SA de CV * 22,000 56 22,000 56 Nuevo Grupo Mexico 18,000 46 18,000 46 Telephonos de Mexico SA - Ser. L 63,031 104 63,031 104 U.S. Commercial Corp. - Ser. B1 16,000 7 16,000 7 ----------- ----------- 1,026 1,026 Netherlands - 4.2% # ABN Amro Holding NV * 27,165 635 17,885 418 45,050 1,053 Aegon NV * 27,787 411 15,715 232 43,502 643 Akzo Nobel NV * 5,304 205 3,156 122 8,460 327 ASM Lithography Holding NV 5,100 101 5,335 106 10,435 207 Corio NV * - 500 19 500 19 Dsm NV * - 900 44 900 44 Elsevier NV * 22,877 284 7,276 90 30,153 374 Euronext * - 1,117 28 1,117 28 Getronics NV * - 1,907 4 1,907 4 Hagemeyer NV * - 849 2 849 2 Heineken NV * 2,968 113 2,273 87 5,241 200 IHC Caland NV * - 371 20 371 20 ING Groep NV 31,865 742 20,437 476 52,302 1,218 Koninklijke (Royal) KPN NV * - 933 13 933 13 Koninklijke (Royal) Philips Electronics NV * 22,807 665 15,348 448 38,155 1,113 Koninklijke Ahold NV * - 7,596 58 7,596 58 Koninklijke KPN NV * 36,643 283 24,664 190 61,307 473 Numico Kon NV * - 1,731 48 1,731 48 Oce-Van Der Grinten * - 972 15 972 15
Qiagen NV * - 1,475 18 1,475 18 Rodamco Europe NV * - 500 29 500 29 Royal Dutch Petroleum Co. * 40,573 2,137 24,306 1,280 64,879 3,417 TNT Post Group NV 5,610 131 3,914 92 9,524 223 Unilever NV * 10,965 716 6,663 435 17,628 1,151 Vedior NV * - 992 16 992 16 VNU NV * - 2,606 82 2,606 82 Wereldhave NV * - 257 19 257 19 Wolters Kluwer NV * 4,000 62 3,127 49 7,127 111 ----------- ----------- ----------- 6,485 4,440 10,925 New Zealand - 0.3% # Auckland International Airport, Ltd. * - 2,732 12 2,732 12 Carter Holt Harvey, Ltd. 37,800 47 9,831 12 47,631 59 Contact Energy Limited 40,900 144 3,264 11 44,164 155 Fisher & Paykel AP 28,996 73 3,080 8 32,076 81 Fisher & Paykel Industries, Inc. 8,443 70 863 7 9,306 77 Fletcher Building 31,200 87 5,215 14 36,415 101 Fletcher Challenge Forests * - 967 1 967 1 Independent Newspapers, Ltd. * - 2,005 7 2,005 7 NGC Holdings Ltd. * - 1,971 3 1,971 3 Sky City Entertainment Group, Ltd. * - 4,544 14 4,544 14 Sky Network Television, Ltd. * - 1,125 4 1,125 4 Telecom Corp. of New Zealand, Ltd. * - 22,717 80 22,717 80 The Warehouse Group, Ltd. 29,000 97 1,694 6 30,694 103 Tower Ltd. * - 4,813 4 4,813 4 ----------- ----------- ----------- 518 183 701 Norway - 0.5% # Aker Kvaerner 380 7 230 4 610 11 Den Norske Bank 18,760 125 8,929 60 27,689 185 Elkem ASA 700 21 - 700 21 Frontline, Ltd. * - 400 10 400 10 Merkantildata ASA 9,800 8 - 9,800 8 Nera ASA * - 700 2 700 2 Norsk Hydro ASA 84 5 1,700 105 1,784 110 Norske Skogindustrier ASA * 5,100 97 1,350 26 6,450 123 Opticom AS 160 2 - 160 2 Orkla SA * - 2,300 51 2,300 51 Schibsted ASA * - 600 10 600 10
Smedvig * 3,600 27 100 1 3,700 28 Smedvig ASA * 4,600 29 200 1 4,800 30 Statoil ASA * 8,908 100 5,000 56 13,908 156 Storebrand ASA 16,140 105 2,200 14 18,340 119 Tandberg ASA 3,920 29 1,400 10 5,320 39 Telenor AS * 22,160 145 8,300 54 30,460 199 Tomra Systems ASA 10,000 60 2,300 14 12,300 74 ----------- ----------- ----------- 760 418 1,178 Philippines - 0.1% # Ayala Land, Inc. * 410,460 45 410,460 45 Metro Bank & Trust 65,450 32 65,450 32 Philippine Long Distance Telephone Co. * 3,200 56 3,200 56 SM Prime Holdings, Inc. 48,000 6 48,000 6 ----------- ----------- 139 139 Portugal - 0.3% # Banco Comercial Portgues SA 62,300 139 22,491 50 84,791 189 Banco Espirito Santo SA * - 1,272 21 1,272 21 BPI-SGPS SA 33,590 123 4,613 17 38,203 140 Brisa Auto Estrada * - 3,395 23 3,395 23 Cimpor-Cimentos De Portugal, SA * - 2,540 13 2,540 13 Electricidade De Portugal * - 20,775 55 20,775 55 Jeronimo Martins, SGPS * - 185 2 185 2 Part Multimedia SGPS 4,439 86 522 10 4,961 96 Portugal Telecom * - 10,896 110 10,896 110 Sonae SGPS SA 87,600 73 13,165 11 100,765 84 ----------- ----------- ----------- 421 312 733 Singapore - 0.7% # Allgreen Properties, Ltd. * - 7,000 5 7,000 5 CapitaLand, Ltd. * - 12,000 11 12,000 11 Chartered Semiconductor Manufacturing 12,000 12 12,000 12 24,000 24 City Developments, Ltd. 15,000 53 5,000 18 20,000 71 Comfortdelgro Corp * - 16,000 8 16,000 8 Creative Technology, Ltd. * - 450 5 450 5 Cycle & Carriage, Ltd. 8,766 30 1,000 3 9,766 33 Datacraft Asia, Ltd. * - 4,000 5 4,000 5 DBS Group Holdings, Ltd. * 17,000 147 13,000 113 30,000 260 Fraser & Neave, Ltd. * - 1,620 12 1,620 12
Guocoland, Ltd. * - 2,000 1 2,000 1 Haw Par Value Corp. , Ltd. 26,876 71 1,490 4 28,366 75 Hotel Properties, Ltd. * - 3,000 2 3,000 2 Keppel Corp., Ltd. * - 6,000 22 6,000 22 Keppel Land, Ltd. * - 3,000 3 3,000 3 NatSteel, Ltd. * - 1,000 1 1,000 1 Neptune Orient Lines, Ltd. 14,000 18 12,000 15 26,000 33 Oversea-Chinese Banking Corp., Ltd. 39,000 278 12,000 85 51,000 363 OverSeas Union Enterprises, Ltd. * - 1,000 4 1,000 4 Parkway Holdings, Ltd. * - 6,000 3 6,000 3 SembCorp Industries, Ltd. * - 9,000 7 9,000 7 SembCorp Logistics, Ltd. * - 5,000 6 5,000 6 SembCorp Marine, Ltd. * - 2,000 1 2,000 1 Singapore Airlines, Ltd. * - 7,000 46 7,000 46 Singapore Exchange, Ltd. * - 8,000 8 8,000 8 Singapore Land, Ltd. * - 1,000 2 1,000 2 Singapore Post Ltd. * - 14,000 6 14,000 6 Singapore Press Holdings, Ltd. * - 4,000 45 4,000 45 Singapore Technologies Engineering, Ltd. * - 15,000 18 15,000 18 Singapore Telecommunications, Ltd. * 101,000 116 73,000 84 174,000 200 SMRT Corporation Ltd. * - 12,000 4 12,000 4 ST Assembly Test Services, Ltd. * - 4,000 5 4,000 5 United Overseas Bank * 42,448 330 14,000 109 56,448 439 United Overseas Land, Ltd. * - 3,000 3 3,000 3 Venture Corp., Ltd. * - 3,000 35 3,000 35 Wing Tai Holdings * - 4,000 2 4,000 2 ----------- ----------- ----------- 1,055 713 1,768 South Africa - 0.9% # Anglo American Platinum Corp., Ltd. * 1,200 52 1,200 52 Anglo American plc * 30,000 641 30,000 641 Anglogold * 3,100 145 3,100 145 Barlow, Ltd. * 7,400 78 7,400 78 Dimension Data Holdings plc 79,483 53 79,483 53 FirstRand, Ltd. 94,300 126 94,300 126 Foschini, Ltd. 37,100 109 37,100 109 Gold Fields Mining * 9,600 137 9,600 137 Impala Platinum Holdings, Ltd. 1,000 87 1,000 87 Imperial Holdings, Ltd. 10,091 101 10,091 101 Investec Ltd. 3,051 58 3,051 58
Liberty Life Association of Africa, Ltd. 10,300 83 10,300 83 M-Cell, Ltd. 8,400 36 8,400 36 Nampak, Ltd. 25,500 50 25,500 50 Nedcor, Ltd. * 4,300 40 4,300 40 Sappi, Ltd. * 5,700 78 5,700 78 Sasol, Ltd. * 11,800 168 11,800 168 South African Breweries plc 6,000 61 6,000 61 Standard Bank Investment Corp., Ltd. 18,000 105 18,000 105 ------- ------- 2,208 2,208 South Korea - 0.9% # Hyundai Motor Co., Ltd. 3,560 151 3,560 151 KIA Motors Corp. 3,310 30 3,310 30 Kookmin Bank * 6,399 240 6,399 240 Korea Electric Power Corp. * 7,430 133 7,430 133 Korea Telecom Corp. 1,040 39 1,040 39 Korea Telecom Freetel 2,980 48 2,980 48 LG Chemical 2,035 94 2,035 94 LG Electronics, Inc. 1,931 95 1,931 95 LG Investment & Securities Co., Ltd. * 2,460 17 2,460 17 Pohang Iron & Steel Co., Ltd. 1,323 181 1,323 181 Samsung Corp. 6,120 51 6,120 51 Samsung Display Devices Co. 1,000 118 1,000 118 Samsung Electro-Mechanics Co. 1,460 48 1,460 48 Samsung Electronics * 2,159 817 2,159 817 Samsung Fire & Marine Insurance 942 54 942 54 Samsung Securities Co., Ltd. 2,470 53 2,470 53 Shinhan Financial 6,930 111 6,930 111 SK Telecom Co., Ltd. * 820 137 820 137 ------- ------- 2,417 2,417 Spain - 3.2% # Abertis Infrastructuras SA * 6,287 95 2,536 38 8,823 133 Acciona SA * - 363 22 363 22 Acerinox SA 1,752 82 559 26 2,311 108 ACS, Actividades de Construccion y Servicios, SA 4,229 206 1,127 55 5,356 261 Aguas De Barcelona * - 695 10 695 10 Altadis SA, Series A * 6,360 180 3,147 89 9,507 269 Amadeus Global Travel 5,240 34 3,055 20 8,295 54 Antena 3 Television SA * - 177 8 177 8
Banco Bilbao Vizcaya SA * 49,959 689 35,328 487 85,287 1,176 Banco Popular Espanol SA 3,070 183 1,846 110 4,916 293 Banco Santander Central Hispano SA * 71,715 848 50,119 593 121,834 1,441 Corporacion Mapfre SA * - 1,026 15 1,026 15 Endesa SA * 15,465 297 10,443 201 25,908 498 Fomento de Construcciones y Contratas SA 1,400 52 578 21 1,978 73 Gas Natural SDG SA * 6,400 150 2,413 56 8,813 206 Grupo Ferrovial SA * 2,312 81 752 26 3,064 107 Iberdrola SA 13,874 274 8,906 176 22,780 450 Iberia Lineas Aereas de Espana SA * - 5,566 16 5,566 16 Inditex 6,292 128 2,499 51 8,791 179 Indra Sistemas SA 6,236 80 1,300 17 7,536 97 NH Hoteles SA * 7,422 85 768 9 8,190 94 Promotora de Informaciones SA * - 897 13 897 13 Repsol SA * 17,332 338 10,683 208 28,015 546 Telefonica Publicidad e Informacion SA * - 1,733 9 1,733 9 Telefonica SA * 82,822 1,215 54,865 805 137,687 2,020 TelePizza SA * - 1,211 2 1,211 2 Union Electrica Fenosa SA 4,900 92 2,249 42 7,149 134 Vallehermoso SA 4,915 74 1,116 17 6,031 91 Zeltia SA * - 1,784 13 1,784 13 ------- ------- ------- 5,183 3,155 8,338 Sweden - 1.8% # Alfa Laval AB * - 900 14 900 14 Assa Abloy AB * - 3,400 40 3,400 40 Atlas Copco AB-A Shares * - 1,300 47 1,300 47 Atlas Copco AB-B Shares * - 800 26 800 26 Axfood AB * - 300 7 300 7 Billerud Aktibolag * - 600 9 600 9 Castellum AB * - 400 9 400 9 Drott AB 5,400 103 900 17 6,300 120 Electrolux AB * 4,900 108 3,500 77 8,400 185 Eniro AB * - 2,200 21 2,200 21 Gambro AB, B Shares * - 1,100 9 1,100 9 Getinge Ab * - 1,600 15 1,600 15 Hennes & Mauritz AB * 14,223 338 5,525 131 19,748 469 Hoganas AB, B Shares * - 300 6 300 6 Holmen AB * - 600 21 600 21 Incentive AB, Series A * - 1,900 16 1,900 16
Modern Time Group AB, B Shares * - 550 12 550 12 NetCom Systems, Inc. 1,732 92 1,150 61 2,882 153 Nobel Biocare Holding AG * - 100 10 100 10 Nordic Baltic Holding AB 59,137 444 27,500 206 86,637 650 OM Hex AB - 750 9 750 9 Sandvik AB * 4,350 150 2,600 90 6,950 240 SAS AB * - 1,200 11 1,200 11 Securitas AB * 11,000 148 3,400 46 14,400 194 Skand Enskilda Banken 10,200 150 5,600 83 15,800 233 Skandia Forsakrings AB 13,900 51 10,100 37 24,000 88 Skanska AB 11,000 97 4,300 38 15,300 135 SKF AB-A Shares * - 200 8 200 8 SKF AB-B Shares * - 1,000 39 1,000 39 SSAB Svenskt Stal AB, Series A * - 600 11 600 11 SSAB Svenskt Stal AB, Series B * - 200 3 200 3 Svenska Cellulosa AB 3,100 127 2,300 94 5,400 221 Svenska Handelsbanken AB, B Shares * - 600 12 600 12 Svenska Handelsbanken, Inc. 9,300 190 6,400 131 15,700 321 Swedish Match AB * - 4,000 41 4,000 41 Telefonaktiebolaget LM Ericsson AB 246,500 442 172,700 310 419,200 752 Telia AB 30,044 157 18,900 99 48,944 256 Trelleborg AB * - 800 13 800 13 Volvo AB, A Shares * - 1,100 32 1,100 32 Volvo AB, B Shares * 5,750 176 2,700 83 8,450 259 WM Data AB, B shares * - 2,000 4 2,000 4 ------- ------- ------- 2,773 1,948 4,721 Switzerland - 6.2% # ABB, Ltd. 21,138 107 20,155 102 41,293 209 Adecco SA * 2,733 176 1,537 99 4,270 275 Ciba Specialty Chemicals AG * 1,667 129 805 62 2,472 191 Clariant AG * - 1,531 23 1,531 23 Credit Suisse Group * 21,266 778 13,867 507 35,133 1,285 Geberit AG * - 40 20 40 20 Givaudan 224 116 88 46 312 162 Holcim * 3,096 144 1,590 74 4,686 218 Kudelski SA * - 405 13 405 13 Kuoni Reisen Holding AG * - 34 11 34 11 Logitech International SA * - 513 22 513 22 Lonza Group AG 1,604 92 520 30 2,124 122
Nestle SA * 6,988 1,745 4,709 1,176 11,697 2,921 Novartis AG 41,256 1,872 27,769 1,260 69,025 3,132 Richemont 10,552 253 6,071 146 16,623 399 Roche Holdings AG 746 103 367 51 1,113 154 Roche Holdings AG * 11,960 1,206 8,195 826 20,155 2,032 Schindler Holding AG * - 63 15 63 15 Serono SA 156 111 81 58 237 169 SGS Holdings 119 75 50 31 169 106 Sulzer AG * - 38 10 38 10 Swatch Group 1,021 123 394 47 1,415 170 Swatch Group AG * - 573 14 573 14 Swiss Reinsurance Co. * 5,579 377 3,738 252 9,317 629 Swisscom AG * 541 178 306 101 847 279 Syngenta AG 2,037 137 1,226 83 3,263 220 Synthes-Stratec, Inc. 109 108 50 50 159 158 Tecan Group AG * - 79 4 79 4 UBS AG * 20,534 1,406 13,770 943 34,304 2,349 Unaxis Holding AG * - 130 18 130 18 Valora Holding AG 321 80 46 12 367 92 Zurich Finance 2,571 370 1,671 240 4,242 610 ------ -------- ------- 9,686 6,346 16,032 Taiwan - 0.6% # Acer Communicaton 22,800 28 22,800 28 Acer, Inc. 44,963 67 44,963 67 Advanced Semiconductor Engineering, Inc. 64,900 67 64,900 67 Arima Computer 49,500 18 49,500 18 Asustek Computer 20,250 45 20,250 45 AU Optronics Corp. 55,650 65 55,650 65 China Dev Fin Holding 144,203 71 144,203 71 China Trust Finance 79,920 80 79,920 80 CMC Magnetics Corp. 51,600 40 51,600 40 Compal Electronics, Inc. 44,160 60 44,160 60 Formosa Chemical & Fibre 32,054 54 32,054 54 Formosa Plastic 52,956 87 52,956 87 Hon Hai Precision Insustry Co., Ltd. 20,700 81 20,700 81 Kinpo Electronics 69,608 40 69,608 40 Lite on Technology 48,056 51 48,056 51 Macronix International Co., Ltd. 59,400 13 59,400 13 Micro Star International 9,176 14 9,176 14
Nan Ya Plastic Corp. 83,824 121 83,824 121 Quanta Computer, Inc. 16,445 40 16,445 40 Realtek Semiconductor Corp. 10,920 19 10,920 19 Ritek Corp. 45,000 28 45,000 28 Siliconware Precision 44,000 45 44,000 45 Taiwan Semiconductor 173,880 325 173,880 325 Tatung 100,000 25 100,000 25 United Microelectronics Corp. 83,525 72 83,525 72 Via Technologies Inc. 14,090 18 14,090 18 Winbond Electronic 69,000 33 69,000 33 --------- ----- 1,607 1,607 Thailand - 0.2% # Advanced Information Services 65,700 140 65,700 140 PTT Exploration & Production Public Co., Ltd. 22,200 150 22,200 150 Siam Cement Co. 31,600 220 31,600 220 --------- ----- 510 510 Turkey - 0.1% # Arcelik AS 6,490,550 36 6,490,550 36 Turkiye Is Bankasi ######### 285 70,216,241 285 --------- ----- 321 321 United Kingdom - 21.9% # 3i Group PLC * 11,775 130 7,072 78 18,847 208 Aegis Group PLC * - 13,367 23 13,367 23 Aggreko PLC * - 3,035 8 3,035 8 Alliance Unichem 7,717 71 2,952 27 10,669 98 AMEC PLC * - 3,798 18 3,798 18 Amvescap plc * 13,224 96 7,939 58 21,163 154 ARM Holdings PLC * - 11,849 27 11,849 27 Association British Ports 11,901 95 3,613 29 15,514 124 AstraZeneca Group PLC * 30,224 1,446 19,917 953 50,141 2,399 Barclays 110,773 985 76,452 680 187,225 1,665 Barratt Developments * - 3,002 29 3,002 29 BBA Group PLC * - 5,542 25 5,542 25 BG Group plc 64,498 330 41,085 210 105,583 540 BICC PLC * - 5,099 20 5,099 20 Billiton plc 44,847 391 28,788 251 73,635 642 BOC Group plc * 17,596 268 5,760 88 23,356 356
Boots Group 15,100 186 9,129 113 24,229 299 BP Amoco plc 410,567 3,320 257,874 2,085 668,441 5,405 BPB 12,089 75 6,111 38 18,200 113 Brambles Industries 22,730 83 8,380 30 31,110 113 British Aerospace plc 57,462 173 35,757 107 93,219 280 British Airport Authority plc 21,926 194 12,429 110 34,355 304 British Airways * - 6,466 27 6,466 27 British American Tobacco plc * 29,280 402 18,433 253 47,713 655 British Land Co. plc 9,000 94 5,721 60 14,721 154 British Sky Broadcast plc 23,449 294 14,667 184 38,116 478 BT Group 153,664 516 100,873 339 254,537 855 Bunzl 12,430 95 5,477 42 17,907 137 Cable & Wireless plc * 48,728 116 27,996 67 76,724 183 Cadbury Schweppes plc * 37,586 275 23,980 176 61,566 451 Canary Wharf Group PLC * - 5,703 27 5,703 27 Capita Group plc 17,669 77 8,112 35 25,781 112 Carlton Communications PLC * 13,900 57 7,353 30 21,253 87 Carnival plc 3,303 133 1,813 73 5,116 206 Cattles PLC * - 3,600 21 3,600 21 Celltech Group PLC * - 3,348 23 3,348 23 Centrica plc 76,232 287 49,380 186 125,612 473 CGU plc 37,687 330 26,273 230 63,960 560 Close Brothers Group PLC * - 1,520 20 1,520 20 Cobham PLC * - 1,279 27 1,279 27 Compass Group plc * 39,189 266 25,420 172 64,609 438 Daily Mail & General Trust 7,508 88 3,372 40 10,880 128 Davis Service 11,677 78 2,454 16 14,131 94 De Lousiana Rue PLC * - 1,732 9 1,732 9 Diageo plc * 53,890 707 36,167 474 90,057 1,181 Dixons Group plc 42,741 106 22,056 55 64,797 161 Electrocomponents plc * 12,098 70 5,197 30 17,295 100 EMAP plc * 6,164 94 3,071 47 9,235 141 EMI Group plc 9,000 26 8,998 25 17,998 51 Enterprise Inns PLC * 5,116 93 2,048 37 7,164 130 Exel * 7,462 98 3,413 45 10,875 143 Firstgroup 12,870 63 5,028 25 17,898 88 FKI PLC * - 7,192 14 7,192 14 Friends Provident Ethical Investment Trust * - 19,556 46 19,556 46 George Wimpey PLC * - 4,233 28 4,233 28 GKN * 17,633 84 8,575 41 26,208 125
GlaxoSmithKline plc * 104,018 2,377 69,551 1,589 173,569 3,966 Granada Compass PLC * 57,831 126 32,121 70 89,952 196 Great Portland Estates PLC * - 2,022 8 2,022 8 Hammerson plc 8,028 93 3,372 39 11,400 132 Hanson Building Materials * 8,990 66 7,856 58 16,846 124 Hanson PLC * - 387 3 387 3 Hays plc * 41,349 89 19,215 41 60,564 130 HBOS * 65,987 852 44,752 578 110,739 1,430 HHG Plc * 17,632 13 17,632 13 Hilton Group plc * 27,700 111 18,792 75 46,492 186 HSBC Holdings plc 182,550 2,861 126,924 1,989 309,474 4,850 IMI 11,248 68 3,852 23 15,100 91 Imperial Chemical Industries plc * 26,199 93 13,726 49 39,925 142 Imperial Tobacco Group plc 13,917 273 8,486 167 22,403 440 Intercontinental Hampshire 15,693 148 7,279 69 22,972 217 Invensys PLC * - 37,344 12 37,344 12 J Sainsbury plc 28,966 162 16,844 94 45,810 256 Johnson Matthey 5,434 95 2,543 45 7,977 140 Kelda Group plc 10,845 91 4,576 38 15,421 129 Kesa Electricals PLC * - 6,582 30 6,582 30 Kidde PLC * - 10,723 20 10,723 20 Kingfisher * 42,693 212 24,891 124 67,584 336 Land Securities SGP 7,350 130 5,449 96 12,799 226 Legal & General Group plc 105,588 189 75,519 135 181,107 324 Liberty National 6,968 85 2,800 34 9,768 119 Lloyds TSB Group PLC 118,179 945 65,085 520 183,264 1,465 Logica plc * 16,105 74 8,713 40 24,818 114 Manitoba Group 5,609 146 3,213 84 8,822 230 Marks & Spencer * 42,777 221 26,272 136 69,049 357 MFI Furniture Group * - 6,400 17 6,400 17 Misys plc 13,522 51 6,675 25 20,197 76 Mitchells & Butler 5,981 24 5,962 24 11,943 48 National Grid Group * 53,002 379 35,753 255 88,755 634 National Power PLC 14,200 31 13,485 30 27,685 61 Next Group 6,142 123 3,228 65 9,370 188 Novar PLC * - 4,484 11 4,484 11 Nycomed Amersham plc 14,138 193 8,148 111 22,286 304 Pearson PLC 15,605 173 9,283 103 24,888 276 Peninsular & Oriental Steam Navigation Co. 18,718 77 8,260 34 26,978 111 Persimmon PLC * - 3,308 32 3,308 32
Pilkington PLC * - 11,203 19 11,203 19 Provident Financial 6,656 77 2,957 34 9,613 111 Prudential Corp. 34,647 292 23,352 197 57,999 489 Rank Group PLC 25,300 126 6,786 34 32,086 160 Reckitt Benckiser 11,385 257 7,008 158 18,393 415 Reed International plc 44,446 371 14,719 123 59,165 494 Rentokil Initial plc 39,081 133 21,573 73 60,654 206 Reuters Group plc 29,157 122 16,417 69 45,574 191 Rexam 11,775 90 6,280 48 18,055 138 Rio Tinto plc 18,738 516 12,426 342 31,164 858 RMC Group plc 6,457 80 2,981 37 9,438 117 Rolls Royce Group 30,599 97 15,792 50 46,391 147 Royal & Sun Alliance Insurance Group 60,060 95 33,221 52 93,281 147 Royal Bank of Scotland Group 48,532 1,426 32,593 958 81,125 2,384 Safeway plc 23,118 117 12,614 64 35,732 181 Schroders PLC * - 1,626 18 1,626 18 Scottish & Newcastle 18,779 127 9,340 63 28,119 190 Scottish and Southern Energy 16,614 200 9,965 120 26,579 320 Scottish Power plc 34,695 231 21,568 143 56,263 374 Securicor * - 5,150 9 5,150 9 Serco Group PLC * - 4,450 14 4,450 14 Severn Trent 8,253 110 4,138 55 12,391 165 Shell Transport & Trading Co. plc 189,806 1,408 112,828 837 302,634 2,245 Signet Group 42,561 78 19,627 36 62,188 114 Slough Estates Finance plc 8,000 63 4,788 38 12,788 101 Smith & Nephew 19,151 160 10,791 90 29,942 250 Smiths Group 11,076 131 6,513 77 17,589 208 South African Breweries plc 15,790 163 9,259 96 25,049 259 SSL International PLC * - 2,478 15 2,478 15 Stagecoach Holdings PLC * - 11,469 16 11,469 16 Tate & Lyle 12,545 70 4,898 27 17,443 97 Taylor Woodrow 17,488 83 6,527 31 24,015 114 Tesco plc 127,371 586 85,336 393 212,707 979 The Berkeley Group PLC * - 1,243 19 1,243 19 The Great Universal Stores plc 19,002 262 11,775 163 30,777 425 The Sage Group plc 15,700 49 14,258 45 29,958 94 Tomkins plc 18,702 89 9,260 44 27,962 133 Unilever plc 49,648 462 32,221 300 81,869 762 United Business Media 8,630 75 3,864 34 12,494 109 United Utilities plc 10,400 92 6,616 59 17,016 151
United Utilities PLC, Class A * - 3,432 19 3,432 19 Vodafone AirTouch plc 1,203,067 2,974 795,070 1,966 1,998,137 4,940 Whitbread 7,465 96 3,452 44 10,917 140 William Hill PLC * - 4,885 37 4,885 37 Wolseley 11,481 162 6,819 96 18,300 258 WPP Group plc 22,552 221 13,730 134 36,282 355 Yell Group PLC * - 5,218 28 5,218 28 -------- -------- -------- 34,541 22,141 56,682 United States - 1.6% # Bajaj Auto, Ltd. - GDR 5,900 143 - 5,900 143 Banco Bradesco - ADR 2,918 77 - 2,918 77 Banco Itau SA - ADR 3,960 197 - 3,960 197 Banco Santander Chile - ADR 2,900 69 - 2,900 69 Brasil Telecom Participacoes S.A. 2,426 91 - 2,426 91 Carnival Corp. 180 7 - 180 7 Centrais Electricas Brasileirias SA - ADR Cl.B * 12,874 101 - 12,874 101 Check Point Software Technologies, Ltd. * 4,200 71 - 4,200 71 Companhia De Bebidas ADR 6,850 175 - 6,850 175 Companhia Energetica de Minas Gerias - ADR 7,701 141 - 7,701 141 Companhia Vale do Rio Doce 3,700 189 - 3,700 189 Compania Cervecerias Unidas SA - ADR * 900 19 - 900 19 Compania de Telecomunicaciones de Chile SA * 2,500 37 - 2,500 37 EIH, Ltd. - GDR 6,700 44 - 6,700 44 Embotelladora Andina SA - ADR * 6,100 64 - 6,100 64 Empresa Nacional de Electricidad SA - ADR * 10,100 118 - 10,100 118 Enersis SA - ADR * 28,447 209 - 28,447 209 Gen-Probe, Inc. * - 344 13 344 13 Grasim Industries, Ltd. - GDR 7,100 156 - 7,100 156 Great Eastern Shipping Co. - GDR 9,020 152 - 9,020 152 Hindalco Industries, Ltd. - GDR 4,900 151 - 4,900 151 Huaneng Power International, Inc. - ADR * 400 28 - 400 28 ITC, Ltd. - GDR 5,900 130 - 5,900 130 Lukoil Holding - ADR* 2,700 251 - 2,700 251 Mahindra & Mahindra, Ltd. * 16,500 141 - 16,500 141 Petroleo Brasileiro SA * 5,500 160 - 5,500 160 Petroleo Brasileiro SA - ADR* 6,800 180 - 6,800 180 Ranbaxy Laboratories, Ltd. - GDR 6,560 167 - 6,560 167 Reliance Industries, Ltd. - GDR 11,000 276 - 11,000 276 Surgutneftegaz - ADR 11,581 337 - 11,581 337
Tatneft - ADR 2,400 55 - 2,400 55 Unified Energy Systems Russia - ADR 6,700 187 - 6,700 187 --------- ---------- --------- 4,123 13 4,136 --------- ---------- --------- TOTAL COMMON STOCK # 54,282 85,433 239,715 PREFERRED STOCK Australia - 0.2% # News Corp., Ltd. 53,728 404 23,372 176 77,100 580 Germany - 0.2% # Fresenius Medical Care AG * - 325 16 325 16 Henkel KGAA 1,112 87 1,112 87 Porsche AG 195 116 90 53 285 169 RWE AG * - 408 14 408 14 Volkswagen AG 2,462 89 1,226 45 3,688 134 --------- ---------- --------- 292 128 420 Italy - 0.0% # Fiat SPA - PRIV EUR * 849 4 849 4 New Zealand - 0.0% # Fletcher Challenge * 1,940 2 1,940 2 South Korea - 0.0% # Samsung Electronics 550 113 550 113 --------- ---------- --------- TOTAL PREFERRED STOCK # 809 310 1,119 WARRANTS Mexico - 0.0% # Cemex SA expire 12/21/04 (Cost $1) 2,000 1 2,000 1 --------- --------- TOTAL WARRANTS # 1 1 RIGHTS Germany - 0.0% # Muenchener Ruckversage expires 11/10/03 (Cost $0) 4,360 38 4,360 38
Thailand - 0.0% # TelecomAsia expires 04/30/08 (Cost $0) 35,747 - 35,747 - --------- ---------- --------- TOTAL RIGHTS # 38 38 PAR VALUE PAR VALUE PAR VALUE (000'S (000'S (000'S OMITTED) OMITTED) OMITTED) COLLATERAL ON LOANED SECURITIES - 7.1% State Street Navigator Securitiees Lending Portfolio $ 8,571 8,571 9,718 9,718 18,289 18,289 SHORT TERM INVESTMENTS Investment in joint trading account 1.061% due 01/02/04 2,955 2,955 2,955 2,955 Federal National Mortgage Association Discount Notes, 1.05% due 01/07/2004 2,300 2,300 2,300 2,300 1.06% due 02/18/2004 6,700 6,690 6,700 6,690 U.S Treasury Bills 0.00% due 01/22/2004 500 500 500 500 0.99% due 03/11/2004 524 524 524 524 --------- ---------- --------- TOTAL SHORT TERM INVESTMENTS # 3,479 9,490 12,969 REPURCHASE AGREEMENTS # Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.70%, to be repurchased at $3,931,153 on 01/02/2004, col1ateralized by $281,000 U.S. Treasury Bonds, 8.50% due 02/15/2020 (valued at $4,013,031, including interest) TOTAL REPURCHASE AGREEMENTS # 3,931 3,931 3,931 3,931 ---------- --------- 3,931 3,931 TOTAL INVESTMENTS AT MARKET # 167,180 108,882 276,062 TOTAL INVESTMENTS AT COST 142,128 87,510 229,638
Payables, less cash and receivables # (8,144) (9,506) (17,650) --- --------- ---------- --------- NET ASSETS # 159,036 99,376 258,412 === ========= ========== =========
* Non-income producing security. ADR-American Depository Receipt. GDR-Global Depository Receipt. PART C OTHER INFORMATION Item 15. Indemnification In response to this item and the requirements of Rule 484 under the Securities Act of 1933, Registrant incorporates by reference herein its response to item 25 in Post-Effective Amendment No. 37 to Form N-1A (File No. 33-2081) filed on May 1, 2003. Item 16. Exhibits (1)(a) Declaration of Trust of John Hancock Variable Series Trust I, dated February 21, 1988, incorporated by reference herein to Pre-Effective Amendment No. 2 to Form N-14 (File No. 333-47686) filed on December 6, 2000. (1)(b) Amendment dated May 2, 2003 to the Declaration of Trust, incorporated by reference herein to Post-Effective Amendment No. 38 to Form N-1A (File No. 33-2081), filed on June 3, 2003. (1)(c) Amendments dated September 24 and March 24, 2004 to the Declaration of Trust (filed herewith). (2) By-Laws of John Hancock Variable Series Trust I, adopted April 12, 1988, and amended and restated as of September 18, 2002, incorporated by reference herein to Post-Effective Amendment No. 37 to Form N-1A (File No. 33-2081) filed on May 1, 2003. (3) Not Applicable. (4) Form of Agreement and Plan of Reorganization (included as exhibit A to the proxy statement/prospectus filed as part of this Registration Statement). (5) Not Applicable. (6)(a) Investment Management Agreement by and between John Hancock Variable Series Trust I and John Hancock Life Insurance Company dated April 12, 1988 relating to the Real Estate Equity Fund and the International Equity Index (formerly "International Equities," formerly "International," originally "Special Opportunities") Fund, incorporated by reference herein to Post-Effective Amendment No. 3 to Form N-1A (File No. 33-2081) filed on April, 12 1988. (6)(b) Amendment No. 1 dated May 1, 1997 to Investment Management Agreement by and between John Hancock Variable Series Trust I and John Hancock Life Insurance Company dated April 12, 1988, incorporated by reference herein, to Post-Effective Amendment No. 16 to Form N-1A (File No. 33-2081) filed on May 1, 1997. (6)(c) Amendment No. 2 dated May 1, 1998 to Investment Management Agreement by and between John Hancock Variable Series Trust I and John Hancock Life Insurance Company dated April 12, 1988 relating to the International Equity Index Fund, incorporated by reference herein to Post-Effective Amendment No. 19 to Form N-1A (File No. 33-2081) filed on May 1, 1998. (6)(d) Amendment No. 3 dated April 23, 1999 to Investment Management Agreement by and between John Hancock Variable Series Trust I and John Hancock Life Insurance Company dated April 12, 1988, incorporated by reference herein to Post-Effective Amendment No. 33 to Form N-1A (File No. 33-2081 ) filed on April 12, 2002. (6)(e) Supplement dated June 1, 2004 to Investment Management Agreement by and between John Hancock Variable Series Trust and John Hancock Life Insurance Company dated April 12, 1988 (filed herewith). (6)(f) Form of Amendment No. 6 dated May 1, 2004 to Investment Management Agreement by and between John Hancock Variable Series Trust and John Hancock Life Insurance Company dated April 12, 1988 (filed herewith). (6)(g) Sub-Investment Management Agreement, dated as of May 29, 2004, among John Hancock Variable Series Trust I, SSgA Funds Management, Inc., and John Hancock Life Insurance Company relating to the International Equity Index Fund (filed herewith). (7)(a) Amended and Restated Underwriting and Indemnity Agreement among John Hancock Variable Series Trust I, Signator Investors, Inc., and John Hancock Life Insurance Company, dated March 24, 2004 (filed herewith). (7)(b) Form of Distribution Agreement dated between John Hancock Variable Series Trust and Manufacturers Financial Securities, LLC (filed herewith). (8) Not Applicable. (9)(a) Custodian Agreement between John Hancock Variable Series Trust I and State Street Bank and Trust Company, dated January 30, 1995, incorporated by reference herein to Post-Effective Amendment No. 10 to Form N-1A (File No. 33-2081) filed on March 2, 1995. (9)(b) Form of Amendment, dated as of April 10, 2003, to Custodian Agreement dated January 30, 1995, as amended, between John Hancock Variable Series Trust I and State Street Bank and Trust Company, incorporated by reference herein to Post-Effective Amendment No. 38 to Form N-1A (File No. 33-2081) filed on June 3, 2003. (10)(a) Rule 12b-1 Plan dated March 24, 2004 for Series I and II shares (filed herewith). (10)(b) Rule 18f-3 Plan dated February 11, 2004 (filed herewith). (10)(c) Amendment dated March 24, 2004 to Rule 18f-3 Plan dated February 11, 2004 (filed herewith). (11) Opinion and consent of Ronald J. Bocage, Esq. as to legality of securities for International Equity Index Fund (to be filed by amendment). (12) Opinion of Dykema Gossett PLLC on tax matters (to be filed by amendment). (13) Not Applicable. (14)(a) Consent of Dykema Gossett PLLC (to be filed by amendment). (14)(b) Consent of Ernst & Young LLP (to be filed by amendment). (14)(c) Consent of PricewaterhouseCoopers, LLP (to be filed by amendment). (15) Not Applicable. (16) Powers of Attorney for Elizabeth G. Cook, Kathleen F. Driscoll, Diane C. Kessler, Michele G. Van Leer, Hassell H. McClellan, and Robert F. Verdonck (filed herewith). (17)(a) Form of Prospectus of the International Equity Index Fund of the John Hancock Variable Series Trust I dated May 1, 2004 (to be filed by amendment). (17)(b) Prospectus of Manufacturers Investment Trust dated May 1, 2004 (to be filed by amendment). (17)(c) Annual Report of the International Equity Index Fund of John Hancock Variable Series Trust I for the year ended December 31, 2003 (filed herewith). (17)(d) Annual Report of Manufacturers Investment Trust for the year ended December 31, 2003 (filed herewith). (17)(e) Form of Participation Agreement between John Hancock Variable Series Trust I, John Hancock Life Insurance Company, and John Hancock Variable Life Insurance company (filed herewith). (17)(f) Form of Participation Agreement between John Hancock Variable Series Trust I, The Manufacturers Life Insurance Company (U.S.A.), and The Manufacturers Life Insurance Company of New York (filed herewith). Item 17. Undertakings (1) The undersigned Registrant agrees that prior to any public reoffering of the securities registered through the use of a prospectus which is a part of this registration statement by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c) of the Securities Act [17 CFR 230.145c], the reoffering prospectus will contain the information called for by the applicable registration form for reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form. (2) The undersigned Registrant agrees that every prospectus that is filed under paragraph (1) above will be filed as a part of an amendment to the registration statement and will not be used until the amendment is effective, and that, in determining any liability under the 1933 Act, each post-effective amendment shall be deemed to be a new registration statement for the securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering of them. SIGNATURES As required by the Securities Act of 1933, this registration statement has been signed on behalf of the Registrant, in the City of Boston and the Commonwealth of Massachusetts, on the 30th day of March, 2004. JOHN HANCOCK VARIABLE SERIES TRUST I By: /s/ Michele Van Leer --------------------------------- Name: Michele G. Van Leer Title: Chairman of the Board of Trustees As required by the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the date indicated. SIGNATURE DATE By: /s/ Raymond F. Skiba --------------------------------- March 30, 2004 Raymond F. Skiba Treasurer (Principal Financial and Accounting Officer) By: /s/ Michele Van Leer --------------------------------- March 30, 2004 Michele G. Van Leer Chairman of the Board of Trustees (Principal Executive Officer) For herself and as attorney-in-fact for: Elizabeth G. Cook, Trustee Diane C. Kessler, Trustee Robert F. Verdonck, Trustee Hassell H. McClellan, Trustee Kathleen F. Driscoll, Trustee EX-99.(1)(C) 3 dex991c.txt AMENDMENTS DATED SEPT 24 AND MARCH 24, 2004 AMENDMENT DATED AS OF March 24, 2004 TO DECLARATION OF TRUST OF JOHN HANCOCK VARIABLE SERIES TRUST I (the "Trust") The Trust's Declaration of Trust dated February 21, 1988, as amended as of May 2, 2003, and as further amended as of September 24, 2003, is hereby amended as of March 24, 2004 in the manner to the extent set forth below: 1. Defined Terms. Except as otherwise defined in this Amendment, terms used in this Amendment shall have the meanings ascribed to them in the Declaration of Trust. 2. Designation of Share Classes. For each Portfolio that now or in the future exists, its class of Shares that is denominated as "Initial Class Shares" in the September 24, 2003 amendment to the Declaration of Trust is hereby redesignated as "NAV Shares"; the class of Shares denominated as "Service Class A Shares" is hereby redesignated "Series I Shares," the class of Shares denominated as "Service Class B Shares" is hereby redesignated "Series II Shares"; the class of Shares denominated as "Service Class C Shares" is hereby redesignated "Series III Shares"; and the class of Shares denominated as "Service Class D Shares" is hereby redesigned "Series IV Shares." IN WITNESS WHEREOF, the undersigned have executed this instrument this twenty-fourth day of March, 2004. /s/ Elizabeth G. Cook /s/ Hassell H. McClellan - -------------------------------------- -------------------------------------- Elizabeth G. Cook Hassell H. McClellan /s/ Kathleen F. Driscoll /s/ Michele G. Van Leer - -------------------------------------- -------------------------------------- Kathleen F. Driscoll Michele G. Van Leer /s/ Diane C. Kessler /s/ Robert F. Verdonck - -------------------------------------- -------------------------------------- Diane C. Kessler Robert F. Verdonck Being all of the Trustees of the Trust Then personally appeared the above-named Elizabeth G. Cook, Kathleen F. Driscoll, Diane C. Kessler, Hassell H. McClellan, Michele G. Van Leer and Robert F. Verdonck, who severally acknowledged the foregoing instrument to be their free act and deed. Before me /s/ Rosalie M. Calabraro -------------------------------------- Notary Public Rosalie M. Calabraro March 24, 2004 My commission expires: 09-04-2009 [Seal] AMENDMENT DATED AS OF SEPTEMBER 24, 2003 TO DECLARATION OF TRUST OF JOHN HANCOCK VARIABLE SERIES TRUST I (the "Trust") The Trust's Declaration of Trust dated February 21, 1988, as amended May 2, 2003, is hereby amended as of September 24, 2003, in the manner and to the extent set forth below: 1. Defined Terms. Except as otherwise defined in this Amendment, terms used in this Amendment shall have the meanings ascribed to them in the Declaration of Trust. 2. Designation of Share Classes. For each Portfolio that now or in the future exists, its class of Shares that is denominated as "Class 1 Shares" in the May 2, 2003 amendment to the Declaration of Trust is hereby redesignated as "Initial Class Shares," the class of Shares denominated as Class 2 Shares is hereby redesignated "Service Class A Shares," the class of Shares denominated as Class 3 Shares is hereby redesignated "Service Class B Shares," the class of Shares denominated as Class 4 Shares is hereby redesignated "Service Class C Shares" and the class of Shares denominated as Class 5 Shares is hereby redesignated "Service Class D Shares." IN WITNESS WHEREOF, the undersigned have executed this instrument this twenty-fourth day or September, 2003. /s/ Elizabeth G. Cook /s/ Hassell H. McClellan - -------------------------------------- -------------------------------------- Elizabeth G. Cook Hassell H. McClellan /s/ Kathleen F. Driscoll /s/ Michele G. Van Leer - -------------------------------------- -------------------------------------- Kathleen F. Driscoll Michele G. Van Leer /s/ Diane C. Kessler /s/ Robert F. Verdonck - -------------------------------------- -------------------------------------- Diane C. Kessler Robert F. Verdonck Being all of the Trustees of the Trust. Then personally appeared the above-named Elizabeth G. Cook, Kathleen F. Driscoll, Diane C. Kessler, Hassell H. McClellan, Michele G. Van Leer and Robert F. Verdonck, who severally acknowledged the foregoing instrument to be their free act and deed. Before me /s/ Rosalie M. Calabraro -------------------------------------- Notary Public My commission expires: Sept 9, 2009 [Seal] EX-99.(6)(E) 4 dex996e.txt SUPPLEMENT DATED JUNE, 2003 TO INVESTMENT MANAGEMENT AGREEMENT INVESTMENT MANAGEMENT AGREEMENT SUPPLEMENT PERTAINING SOLELY TO RULE 12B-1 CLASSES OF JOHN HANCOCK VARIABLE SERIES TRUST I (the "Trust") SUPPLEMENT to Investment Management Agreements dated April 12, 1988, April 15, 1994, March 14, 1996, April 14, 1998, July 28, 1999, June 1, 2000, April 30, 2001, by and between the Trust and John Hancock Life Insurance Company (collectively, the "Agreements"). The Agreements are each supplemented, effective June 1, 2003 by adding the following language at the end of Section 5 of each Agreement, as currently in effect: Any fees pursuant to a plan adopted by the Trust under Rule 12b-1 ("Rule 12b-1 fees") under the 1940 Act that are chargeable to any class of a Fund's (Portfolio's) shares shall be excluded from the expenses that are reimbursable pursuant to this paragraph. All other provisions of the Agreements shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be executed and to take effect on the date herein above specified. ATTEST: JOHN HANCOCK VARIABLE SERIES TRUST I By: /s/ Michele G. Van Leer --------------------------------- Title: Chairman ATTEST: JOHN HANCOCK LIFE INSURANCE COMPANY By: /s/ Michele G. Van Leer --------------------------------- Title: Senior Vice President EX-99.(6)(F) 5 dex996f.txt FORM OF AMENDMENT NO.6 DATED MAY 1 2004 TO INVESTMENT MANAGEMENT AGREEMENT Amendment No. 6 to the Investment Management Agreement AMENDMENT to Investment Management Agreement dated April 12, 1988, as amended July 1, 1997, May 1, 1998, April 23, 1999 and November 1, 2000 and supplemented May 1, 2003, by and between the John Hancock Variable Series Trust I and John Hancock Life Insurance Company (the "Agreement"). The parties agree to amend the Agreement as follows: 1. The phrase "International Equity Index Portfolio" is replaced with the phrase "International Equity Index Fund" wherever shown. 2. The last paragraph of Section 5. INVESTMENT ADVISORY FEE AND EXPENSE LIMITATION is amended by adding the following language at the end thereof: Nothwithstanding anything stated above to the contrary, JHLICO shall have no obligation hereunder to reimburse the International Equity Index Fund for any normal operating costs and expenses directly incurred by, or allocated to, that Fund (Portfolio). All other provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be executed and to take effect on May 1, 2004. ATTEST: JOHN HANCOCK VARIABLE SERIES TRUST I By: ----------------------------------- Title: ATTEST: JOHN HANCOCK LIFE INSURANCE COMPANY By: ----------------------------------- Title: EX-99.(6)(G) 6 dex996g.txt SUB-INVESTMENT MANAGEMENT AGREEMENT (International Equity Index Fund) ------------------------------- SUB-INVESTMENT MANAGEMENT AGREEMENT AMONG JOHN HANCOCK VARIABLE SERIES TRUST I SSgA FUNDS MANAGEMENT, INC. AND JOHN HANCOCK LIFE INSURANCE COMPANY SUB-INVESTMENT MANAGEMENT AGREEMENT AGREEMENT made as of the 29th day of March, 2004 by and among John Hancock Variable Series Trust I, a Massachusetts business trust (the "Trust"), SSgA Funds Management, Inc., a Massachusetts corporation ("SSgA"), and John Hancock Life Insurance Company, a Massachusetts corporation ("JHLICO"). WHEREAS, the Trust is organized and is engaged in business as an open-end management investment company and is so registered under the Investment Company Act of 1940 (the "1940 Act"); and WHEREAS, JHLICO and SSgA are each engaged in the business of rendering investment advice under the Investment Advisers Act of 1940, as amended; and WHEREAS, the Trust is authorized to issue shares of capital stock in separate series with each such series representing interests in a separate portfolio of securities and other assets; and WHEREAS, the Trust offers shares in several series, one of which is designated as the International Equity Index Fund (together with all other series established by the Trust, collectively referred to as the "Funds"), each of which pursues its investment objectives through separate investment policies; and WHEREAS, the Trust has retained JHLICO to render investment management services to the Trust pursuant to an Investment Management Agreement dated as of April 12, 1988 (the "Investment Management Agreement"), pursuant to which it may contract with SSgA as a sub-manager as provided for herein; NOW, THEREFORE, WITNESSETH: That it is hereby agreed between the parties hereto as follows: 1. APPOINTMENT OF SUB-MANAGER (a) Subject Fund. SSgA is hereby appointed and SSgA hereby accepts the appointment, on the terms herein set forth and for the compensation herein provided, to act as investment adviser and manager to the International Equity Index Fund (the "Subject Fund") for the period commencing on March 29, 2004 for the period and on the terms herein set forth, and for the compensation herein provided. (b) Additional Subject Funds. In the event that the Trust and JHLICO desire to retain SSgA to render investment advisory services hereunder for any other Fund, they shall so notify SSgA in writing. If it is willing to render such services, SSgA shall notify the Trust in writing, whereupon such Fund shall become a Subject Fund hereunder. (c) Incumbency Certificates. SSgA shall furnish to JHLICO, immediately upon execution of this Agreement, a certificate of a senior officer of SSgA setting forth (by name and title, and including specimen signatures) those officers of SSgA who are authorized to make investment decisions for the Subject Fund pursuant to the provisions of this Agreement. SSgA shall promptly provide supplemental certificates in connection with each additional Subject Fund (if any) and further supplemental certificates, as needed, to reflect all changes with respect to such authorized officers for any Subject Fund. On behalf of the Trust, JHLICO shall instruct the custodian for the Subject Fund to accept instructions with respect to the Subject Fund from the officers of SSgA so named. (d) Independent Contractor. SSgA shall for all purposes herein be deemed to be an independent contractor and shall, unless otherwise expressly provided or authorized, have no authority to act for or be deemed an agent of the Trust. (e) SSgA's Representations. SSgA represents, warrants and agrees (i) that it is registered as an investment adviser under the Investment Advisers Act of 1940, as amended, and that it will remain so registered and will comply with the requirements of said Act, and the rules and regulations thereunder, at all times while this Agreement remains in effect, (ii) that it will promptly notify JHLICO if the foregoing representation and agreement shall cease to be true (in any material respect) at any time during the term of this Agreement, (iii) that it will promptly notify JHLICO of any material change in the senior management or ownership of SSgA, or of any change in the identity of the personnel who manage the Subject Fund, and (iv) that it has adopted a code of ethics complying with the requirements of Rule 17j-1 of the Securities and Exchange Commission (the "SEC") under the 1940 Act and has provided true and complete copies of such code to the Trust and to JHLICO, and has adopted procedures designed to prevent violations of any such codes, (v) that it has furnished the Trust and JHLICO each with a copy of SSgA's Form ADV, Part II, as most recently filed with the SEC, and will promptly furnish copies of each future amendment thereto; and (vi) that it presently maintains, and shall continue to maintain as long as this Agreement is in effect, sufficient Directors & Officers, Errors & Omissions and fidelity bond insurance coverages to provide coverage to JHLICO, the Trust and the Subject Fund for any claims or losses arising from, or in connection with, the activities of SSgA and its officers and employees with respect to the Subject Fund. (f) JHLICO's Representations. JHLICO represents, warrants and agrees that it has all requisite power and authority to enter into and perform its obligations under this Agreement, and has taken all necessary corporate action to authorize its execution, delivery and performance of this Agreement. (g) The Trust's' Representations. The Trust represents, warrants and agrees that it has all requisite power and authority to enter into and perform its obligations under this Agreement, and has taken all necessary corporate action to authorize its execution, delivery and performance of this Agreement. 2. PROVISION OF INVESTMENT MANAGEMENT SERVICES. SSgA will provide for the Subject Fund a continuing and suitable investment program consistent with the investment policies, objectives, guidelines and restrictions of said Fund, as established by the Trust and JHLICO, and as contained in the Prospectus and Statement of Additional Information of the Subject Fund, as in effect from time to time. From time to time, JHLICO or the Trust may provide SSgA with additional or amended investment policies, guidelines and restrictions. SSgA, as sub-manager, will manage the investment and reinvestment of the assets in the Subject Fund, and perform the functions set forth below, (i) subject to the overall supervision, direction, control and review of JHLICO and the Board of Trustees of the Trust, and (ii) consistent with the applicable investment objectives, policies, - 2 - guidelines and restrictions, the provisions of the Trust's Declaration of Trust, Bylaws, prospectus, statement of additional information (each as in effect from time to time), the 1940 Act and all other applicable laws and regulations (including any applicable investment restrictions imposed by state insurance laws and regulations or any directions or instructions delivered to SSgA in writing by JHLICO or the Trust from time to time). By its signature below, SSgA acknowledges receipt of a copy of the Trust's Declaration of Trust, Bylaws, prospectus, and statement of additional information, each as in effect on the date of this Agreement. SSgA will, at its own expense: (a) advise the Trust in connection with investment policy decisions to be made by its Board of Trustees or any committee thereof regarding the Subject Fund and, upon request, furnish the Trust with research, economic and statistical data in connection with said Fund's investments and investment policies; (b) submit such reports and information as JHLICO or the Trust' Board of Trustees may reasonably request, to assist the custodian in its determination of the market value of securities held in the Subject Fund; (c) place orders for purchases, exchanges and sales of portfolio investments for the Subject Fund and, in connection therewith, execute any and all documents as attorney-in-fact for the Subject Fund as may reasonably be necessary, desirable, or convenient and consistent with the investment objectives, policies, guidelines and restrictions of said Fund; (d) give instructions to the Subject Fund's custodian concerning the delivery of securities and transfer of cash for the Subject Fund; (e) maintain and preserve the records relating to its activities hereunder required by the 1940 Act to be maintained and preserved by the Trust, to the extent not maintained by the custodian, transfer agent or JHLICO; (f) at the close of business each day, provide JHLICO and the custodian and JHLICO's Fund Operations unit with trade information for each transaction effected for the Subject Fund, and promptly forward to the custodian information on all brokerage or dealer confirmations; (g) as soon as practicable following the end of each calendar month, provide JHLICO with written statements showing all transactions effected for the Subject Fund during the month, a summary listing all investments held in such Fund as of the last day of the month, and such other information as JHLICO may reasonably request in connection with the accounting services that JHLICO provides for the Subject Fund; and (h) absent specific instructions to the contrary provided to it by JHLICO and subject to its receipt of all necessary voting materials, vote all proxies with respect to investments of the Subject Fund in accordance with SSgA's proxy voting policy as most recently provided to JHLICO. On its own initiative, SSgA will apprise JHLICO and the Trust of important political and economic developments materially affecting the marketplace or the Subject Fund, and - 3 - will furnish JHLICO and the Trust' Board of Trustees from time to time such information as is appropriate for this purpose. SSgA will also make its personnel available in Boston or other reasonable locations as often as quarterly to discuss the Subject Fund and SSgA's management thereof, to educate JHLICO sales personnel with respect thereto, and for such other purposes as the Trust or JHLICO may reasonably request. The Trust and JHLICO will provide timely information to SSgA regarding such matters as purchases and redemptions of shares in the Subject Fund and the cash requirements of, and cash available for investment in, the Fund. JHLICO will timely provide SSgA with copies of monthly accounting statements for the Subject Fund, and such other information (including, without limitation, reports concerning the classification of Fund securities for purposes of Subchapter M of the Internal Revenue Code and Treasury Regulations Section 1.817) as may be reasonably necessary or appropriate in order for SSgA to perform its responsibilities hereunder. 3. ALLOCATION OF EXPENSES. Each party to this Agreement shall bear the costs and expenses of performing its obligations hereunder. In this regard, the Trust specifically agrees to assume the expense of: (a) brokerage commissions for transactions in the portfolio investments of the Trust and similar fees and charges for the acquisition, disposition, lending or borrowing of such portfolio investments; (b) custodian fees and expenses; (c) all taxes, including issuance and transfer taxes, and reserves for taxes payable by the Trust to federal, state or other governmental agencies; and (d) interest payable on the Trust's borrowings. Nothing in this Agreement shall alter the allocation of expenses and costs agreed upon between the Trust and JHLICO in the Investment Management Agreement or any other agreement to which they are parties. 4. SUB-ADVISORY FEES. For all of the services rendered with respect to the Subject Fund as herein provided, JHLICO shall pay to SSgA a fee (for the payment of which the Trust shall have no obligation or liability), based on the Current Net Assets of the Subject Fund, as set forth in Schedule I attached hereto and made a part hereof, and as may be amended from time to time with respect to additional Subject Fund. Such fee shall be accrued daily and payable monthly, as soon as practicable after the last day of each calendar month. In the case of termination of this Agreement with respect to a Subject Fund during any calendar month, the fee with respect to such Fund accrued to but excluding the date of termination shall be paid promptly following such termination. For purposes of computing the amount of advisory fee accrued for any day, "Current Net Assets" shall mean the Subject Fund's net assets as of the most recent preceding day for which the Subject Fund's net assets were computed. - 4 - 5. PORTFOLIO TRANSACTIONS. In connection with the investment and reinvestment of the assets of the Subject Fund, SSgA is authorized to select the brokers or dealers that will execute purchase and sale transactions for the Fund and to use its best efforts to obtain the best available price and most favorable execution in relation to the services received on behalf of the Subject Fund with respect to all such purchases and sales of portfolio securities for said Fund. SSgA shall maintain records adequate to demonstrate compliance with this requirement. Subject to this primary requirement, and maintaining as its first consideration the benefits to the Subject Fund and its shareholders, SSgA shall have the right subject to the control of the Board of Trustees, and to the extent authorized by the Securities Exchange Act of 1934, to follow a policy of selecting brokers who furnish brokerage and research services to the Subject Fund or to SSgA, and who charge a higher commission rate to the Subject Fund than may result when allocating brokerage solely on the basis of seeking the most favorable price and execution. SSgA shall determine in good faith that such higher cost was reasonable in relation to the value of the brokerage and research services provided. SSgA will not receive any tender offer solicitation fees or similar payments in connection with the tender of investments of any Fund. JHLICO shall provide the SSgA a list of other sub-managers to the Subject Fund and to every other Fund of the Trust (each, a "Sub-Manager"). SSgA will not consult with any Sub-Manager concerning transactions of the Subject Fund in securities or other assets, except as such consultations may be reasonably necessary in order to ensure compliance with paragraphs (a) and (b) of Rule 12d3-1 under the 1940 Act. 6. OWNERSHIP OF INFORMATION, RECORDS, AND CONFIDENTIALITY. The Trust shall own and control all records maintained hereunder by SSgA on the Trust's behalf and, in the event of termination of this Agreement with respect to any Fund for any reason, all records relating to that Fund shall be promptly returned to the Trust, free from any claim or retention of rights by SSgA, provided that (subject to the last paragraph of this Section 6) SSgA may retain copies of such records. SSgA also agrees, upon request of the Trust, promptly to surrender such books and records or, at its expense, copies thereof, to the Trust or make such books and records available for audit or inspection by representatives of regulatory authorities or other persons reasonably designated by the Trust. SSgA further agrees to maintain, prepare and preserve such applicable books and records in accordance with the 1940 Act and rules thereunder, including but not limited to Section 31 and Rules 31a-1 and 31a-2, and to supply all information requested by any insurance regulatory authorities to determine whether all insurance laws and regulations are being complied with. SSgA shall supply the Board of Trustees and officers of the Trust and JHLICO with all statistical information regarding investments which is reasonably required by them and reasonably available to SSgA. SSgA shall not disclose or use any records or information obtained pursuant hereto in any manner whatsoever except as expressly authorized herein, and will keep confidential any information obtained pursuant hereto, and disclose such information only if the Trust has authorized such disclosure, or if such disclosure is expressly required by applicable federal or state regulatory authorities. - 5 - 7. LIABILITY; STANDARD OF CARE. No provision of this Agreement shall be deemed to protect SSgA or JHLICO against any liability to the Trust or its shareholders to which it might otherwise be subject by reason of any willful misfeasance, bad faith or negligence in the performance of its duties or the reckless disregard of its obligations and duties under this Agreement or the Investment Management Agreement. Nor shall any provision hereof be deemed to protect any trustee or officer of the Trust against any such liability to which he might otherwise be subject by reason of any willful misfeasance, bad faith or negligence in the performance his duties or the reckless disregard of his obligations and duties. SSgA shall employ only qualified personnel to manage the Subject Fund; shall comply with all applicable laws and regulations in the discharge of its duties under this Agreement; shall (as provided in Section 2 above) comply with the investment objectives, policies, guidelines and restrictions of the Subject Fund and with the provisions of the Trust's Declaration of Trust, Bylaws, prospectus and statement of additional information or any supplements thereto; shall manage the Subject Fund (subject to the receipt of, and based upon the information contained in, periodic reports from JHLICO or the custodian concerning the classification of Fund securities for such purposes) as a regulated investment company in accordance with subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"), and Treasury Regulations Section 1.817-5(b); shall act at all times in the best interests of the Trust; and shall discharge its duties with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of a similar enterprise. However, SSgA shall not be obligated to perform any service not described in this Agreement, and shall not be deemed by virtue of this Agreement to have made any representation or warranty that any level of investment performance or level of investment results will be achieved. 8. DURATION AND TERMINATION OF THIS AGREEMENT. (a) Duration. This Agreement shall become effective with respect to the Subject Fund as provided in Section 1(a) hereof and, with respect to any additional Subject Fund, on the date of receipt by the Trust of notice from SSgA in accordance with Paragraph 1(b) hereof that it is willing to serve with respect to such Fund. Unless terminated as herein provided, this Agreement shall remain in full force and effect for two years from the date hereof with respect to the initial Subject Fund and, with respect to each additional Subject Fund, until two years following the date on which such Fund becomes a Subject Fund hereunder, and shall continue in full force and effect thereafter with respect to each Subject Fund so long as such continuance with respect to any such Fund is approved at least annually (a) by either the Board of Trustees of the Trust or by vote of a majority of the outstanding voting shares of such Fund, and (b) in either event by the vote of a majority of the trustees of the Trust who are not parties to this Agreement or "interested persons" of any such party, cast in person at a meeting called for the purpose of voting on such approval. Any approval of this Agreement by the holders of a majority of the outstanding shares of any Subject Fund shall be effective to continue this Agreement with respect to any such Fund notwithstanding (A) that this Agreement has not been approved by the holders of a majority of the outstanding shares of any other Fund affected hereby, and (B) that this Agreement has not been approved by the vote of a majority of the outstanding shares of the Trust, unless such approval shall be required by any other applicable law or otherwise. The terms "assignment," - 6 - "vote of a majority of the outstanding shares" and "interested person," when used in this Agreement, shall have the respective meanings specified in the 1940 Act and rules thereunder. (b) Termination. This Agreement may be terminated with respect to any Subject Fund at any time, without payment of any penalty, by the Trust pursuant to a vote of the trustees of the Trust or a vote of a majority of the outstanding shares of such Fund, which termination shall be effective immediately upon delivery of notice thereof to SSgA and JHLICO. This Agreement may be terminated by SSgA on at least ninety days' prior written notice to the Trust and JHLICO, and may be terminated by JHLICO on at least ninety days' prior written notice to the Trust and SSgA. (c) Automatic Termination. This Agreement shall automatically and immediately terminate in the event of its assignment (other than as permitted pursuant to Section 15 below) or if the Investment Management Agreement is terminated. 9. SERVICES NOT EXCLUSIVE; USE OF SSgA'S NAME AND LOGO. The services of SSgA to the Trust are not to be deemed exclusive and it shall be free to render similar services to others so long as its services hereunder are not impaired thereby. It is specifically understood that directors, officers and employees of SSgA and of its subsidiaries and affiliates may continue to engage in providing portfolio management services and advice to other investment companies, whether or not registered, and other investment advisory clients. During the term of this Agreement, JHLICO and the Trust shall have the non-exclusive and non-transferable right to use SSgA's name and logo in all materials relating to the Subject Fund, including all prospectuses, proxy statements, reports to shareholders, sales literature and other written materials prepared for distribution to shareholders of the Trust or the public. However, prior to distribution of any materials which refer to SSgA, JHLICO shall consult with SSgA and shall furnish to SSgA a copy of such materials. SSgA agrees to cooperate with JHLICO and to review such materials promptly. JHLICO shall not distribute such materials if SSgA reasonably objects in writing, within five (5) business days of its receipt of such copy (or such other time as may be mutually agreed), to the manner in which its name and logo are used. 10. AVOIDANCE OF INCONSISTENT POSITION. In connection with the purchase and sale of portfolio securities of the Subject Fund, SSgA and its directors, officers and employees will not act as principal or agent or receive any commission; except that, in compliance with procedures adopted by the Trust pursuant to Rule 17e-1 under the 1940 Act, an affiliate of SSgA, State Street Brokerage Services, Inc., may be so employed and may receive a commission. Nothing in this Agreement, however, shall preclude the combination of orders for the sale or purchase of portfolio securities of the Subject Fund with those for other registered investment companies managed by SSgA or its affiliates, if orders are allocated in a manner deemed equitable by SSgA among the accounts and at a price approximately averaged. - 7 - 11. AMENDMENT. No provision of this Agreement may be changed, waived, discharged or terminated orally, but only by an instrument in writing. No amendment of this Agreement shall be effective with respect to any Fund until approved specifically by (a) the Board of Trustees of the Trust, or by vote of a majority of the outstanding shares of that Fund, and (b) by vote of a majority of those trustees of the Trust who are not interested persons of any party to this Agreement cast in person at a meeting called for the purpose of voting on such approval. 12. LIMITATION OF LIABILITY. It is expressly agreed that the obligations of the Trust hereunder shall not be binding upon any of the trustees, shareholders, officers, agents or employees of Trust personally, but only bind the trust property of the Trust, as provided in the Trust's Declaration of Trust. 13. NOTICES Notices and other communications required or permitted under this Agreement shall be in writing, shall be deemed to be effectively delivered when actually received, and may be delivered by US mail (first class, postage prepaid), by facsimile transmission, by hand or by commercial overnight delivery service, addressed as follows: SSgA: SSgA Funds Management, Inc. One Lincoln St. 32nd Floor Boston, MA 02111 Attn: Compliance Officer Fax #: (617) 664-6174 JHLICO: John Hancock Life Insurance Company 200 Clarendon Street P.O. Box 111 Boston, MA 02117 Attention: Raymond F. Skiba Fax #: (617) 572-4953 TRUST: John Hancock Variable Series Trust I 200 Clarendon Street P.O. Box 111 Boston, MA 02117 Attention: Raymond F. Skiba Fax #: (617) 572-4953 14. GOVERNING LAW. This agreement shall be construed in accordance with the laws of the Commonwealth of Massachusetts and the applicable provisions of the 1940 Act and rules thereunder. - 8 - 15. ASSIGNMENT. This Agreement may not be assigned by any party, either in whole or in part, without the prior written consent of each other party; provided, however, that any assignment that results in a change of actual control or management of SSgA (within the meaning of Rule 2a-6 under the 1940 Act) shall terminate this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day first set forth above. ATTEST: JOHN HANCOCK VARIABLE SERIES TRUST I By: /s/Michele Van Leer ------------------------------------ Name: Michele Van Leer Title: Chairman ATTEST: JOHN HANCOCK LIFE INSURANCE COMPANY By: /s/Michele Van Leer ------------------------------------ Name: Michele Van Leer Title: Senior Vice President ATTEST: SSgA FUNDS MANAGEMENT, INC. By: /s/Peter A. Amrosini ------------------------------------ Name: Peter A. Amrosini Title: Senior Principal - 9 - SCHEDULE I FEES ---- (International Equity Index Fund) Current Net Assets Under Management Sub-Investment Management Fee - ----------------------------------- ------------------------------ On the first $100,000,000 Ten (10) basis points (0.10%) On amounts over $100,000,000 Eight (8) basis points (0.08%) - 10 - EX-99.(7)(A) 7 dex997a.txt AMENDED AND RESTATED UNDERWRITING AND INDEMNITY AGREEMENT AMENDED AND RESTATED UNDERWRITING AND INDEMNITY AGREEMENT By and Among JOHN HANCOCK VARIABLE SERIES TRUST I, SIGNATOR INVESTORS, INC., and JOHN HANCOCK LIFE INSURANCE COMPANY Agreement made as of March 24, 2004, among John Hancock Variable Series Trust I, an open-end investment company organized as a business trust under the laws of Massachusetts (the "Series"), Signator Investors, Inc., a registered broker-dealer organized under the laws of Delaware ("Signator"), and John Hancock Life Insurance Company, a life insurance company organized under the laws of Massachusetts and a registered investment adviser ("JHLICO"). WHEREAS, the Series has agreed to sell its shares to the Separate Accounts of JHLICO and of its wholly-owned subsidiary, John Hancock Variable Life Insurance Company ("Separate Accounts"), in order to fund the Separate Accounts and the variable annuity contracts and variable life insurance policies issued by them, and WHEREAS, pursuant to an Underwriting and Indemnity Agreement dated as of May 1, 1997, the Series appointed Signator, an indirect wholly-owned subsidiary of JHLICO, as the principal underwriter of the Series' shares that the Series sells to the Separate Accounts, and WHEREAS, the parties thereto now desire to amend and restate that Agreement, and WHEREAS, JHLICO has accepted its appointment by the Series to serve as investment adviser to the Series pursuant to several Investment Management Agreements (together with any amendments thereto, the "Investment Management Agreements"), and WHEREAS, pursuant to the Investment Management Agreements, the Series agrees to assume, or provide for others to assume, certain expenses for Series operations and activities, and WHEREAS, pursuant to the Investment Management Agreements, JHLICO agrees to perform certain administrative functions and services on behalf of the Series and also to assume certain of the expenses of the Series. NOW, THEREFORE, WITNESSETH: That it is hereby agreed among the parties as follows: 1. APPOINTMENT OF SIGNATOR AS UNDERWRITER. The Series hereby appoints Signator to continue as the principal underwriter and distributor of the Series to sell its shares to the Separate Accounts and Signator hereby accepts such appointment. The Series, during the term of this Agreement, shall sell its shares to the Separate Accounts at net asset values as set forth in the Series' applicable Prospectus and Statement of Additional Information, as in effect from time to time (collectively hereinafter the "Prospectus"), and upon the terms and conditions set forth below. 2. EXCLUSIVE NATURE OF DUTIES. Signator shall be the exclusive representative of the Series to act as principal underwriter and distributor for sales of shares to the Separate Accounts. However, the Series may appoint other principal underwriters and distributors with respect to sales of Series shares to other parties. 3. SALE AND REDEMPTION OF SHARES OF THE SERIES. (a) Sales, redemptions and repurchases shall be effected directly by the transfer agent of the Series, as such, according to the terms of the Series' transfer agency agreement, and payment for shares shall be transmitted by the transfer agent directly to the Series' custodian. (b) The Series shall have the right to suspend the redemption of shares of any of its Portfolios pursuant to the conditions set forth in the Prospectus. The Series shall also have the right to suspend the sale of shares of any or all of its Portfolios at any time when it is authorized to suspend redemption of such shares, or at any other time when there shall have occurred an extraordinary event or circumstances which, in the reasonable judgment of the Series, makes it impractical or inadvisable to continue to sell any such shares. (c) The Series will give Signator prompt notice of any such suspension and shall promptly furnish such other information in connection with the sale and redemption of Series shares as Signator reasonably requests. 4. DUTIES OF THE SERIES. (a) The Series shall furnish to Signator copies of all information, financial statements and other documents or papers which it may reasonably request for use in connection with the distribution of shares of the Series. (b) The Series shall take, from time to time, but subject to any necessary approval of its shareholders, all necessary action to register shares under the Securities Act of 1933 (the "1933 Act"), to the end that there will be available for sale such number of shares in each Portfolio as may reasonably be expected to be sold and issued. (c) The Series shall use its best efforts to qualify and maintain the qualification of an appropriate number of shares of each of its Portfolios for sale under the securities laws of such states as Signator may reasonably require. 2 (d) The Series will furnish to Signator upon request copies of annual and interim reports of the Series. (e) The Series shall promptly notify Signator if the registration or qualification of any Series shares under any state or Federal securities laws, or the Series' registration under the Investment Company Act of 1940 (the "1940 Act"), is suspended or terminated, or if any government body or agency institutes proceedings to terminate the offer and sale of any Series shares in any jurisdiction. 5. DUTIES OF SIGNATOR. (a) Signator shall be subject to the direction and control of Series in the sale of its shares. Signator shall not be obligated to sell any specific number of shares in any Portfolio. (b) In selling the shares of the Series, Signator shall use its best efforts in all respects duly to conform with the requirements of all Federal and state laws and regulations and the requirements of the National Association of Securities Dealers, Inc. (the "NASD"), relating to the sale of such securities. Neither Signator nor any other person shall make any representations or give any information regarding the Series which is not contained in the registration statement or related Prospectus or sales or advertising material approved by Signator. (c) Signator shall act as an independent contractor and nothing herein contained shall constitute Signator, its agents or representatives, or any employees thereof as employees of the Series in connection with the sale of shares of the Series. Signator assumes full responsibility for its agents and employees under applicable statutes. No commission shall be paid to any person or entity in connection with the sale of Series shares hereunder to the Separate Accounts, provided, however, that this shall not preclude the making of any payments pursuant to and in accordance with any plan adopted by the Series pursuant to Rule 12b-1 under the 1940 Act or any agreement related thereto. (d) Signator shall keep records showing the amount of any significant contribution to or withdrawal from any Separate Account subaccount investing in the Series which does not reflect an automatic transaction under an annuity or insurance contract (such as investments of net premiums, deaths of insureds, deductions of fees and charges, transfers, surrenders, loans, loan repayments, deductions of loan interest, lapses, reinstatements, and similar automatic transactions), which record shall also include the name of the person ordering the transaction and the date and time of day the transaction was ordered. It is hereby agreed that any issuance, redemption or repurchase of Portfolio shares relating to any such non-automatic transaction shall be at the Portfolio's net asset value per share next computed after the time of said order, and said order shall become irrevocable at the time as of which such value is next determined. Signator shall also maintain records of the dates and times of day at which all transactions were effected, showing the share and dollar amounts of such transactions, and all other records required by the Securities Exchange Act of 1934 ("1934 Act") and rules thereunder with respect to the issuance, redemption or repurchase of Series shares. All records required by this paragraph to be maintained by Signator may be maintained by the transfer agent of the Series on behalf of Signator, but at all times such records (i) will be maintained and preserved in conformity with 3 the requirements of Rules 17a-3 and 17a-4 under the 1934 Act, (ii) shall be and remain the property of Signator, and (iii) be all times subject to inspection by the Securities and Exchange Commission in accordance with Section 17(a) of the 1934 Act. 6. INDEMNIFICATION. Signator and JHLICO (together, the "Indemnitors" herein), jointly and severally, hereby indemnify and hold harmless the Series and each of its trustees and officers (or former officers and trustees) (collectively, "Indemnitees") against any loss, liability, claim, damage, or expense (including the reasonable cost of investigating and defending against the same and any counsel fees reasonably incurred in connection therewith) incurred by any Indemnitees under the 1933 Act or under common law or otherwise which arise out of or are based upon (1) any untrue or alleged untrue statement of a material fact contained in information furnished by Signator or JHLICO for use in the Series' registration statement, Prospectus, or annual or interim reports to shareholders, (2) any omission or alleged omission to state a material fact in connection with such information furnished by Signator or JHLICO which is required to be stated in any of such documents or necessary to make such information not misleading, (3) any misrepresentation or omission or alleged misrepresentation or omission to state a material fact on the part of Signator or JHLICO or any of their respective agents, officers or employees unless such misrepresentation or omission or alleged misrepresentation or omission was made in reliance on written information furnished by the Series, or (4) the willful misconduct or failure to exercise reasonable care and diligence on the part of any such persons with respect to services rendered under this Agreement. This indemnity provision, however, shall not operate to protect any officer or trustee of the Series from any liability to the Series or any shareholder by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of his or her duties. In case any action shall be brought against any Indemnitee, the Indemnitors shall not be liable with respect to any claim made against any Indemnitee, unless the Indemnitee shall have notified Signator and JHLICO in writing within a reasonable time after the summons or other first legal process giving information of the nature of the claim shall have been served upon the Indemnitee (or after the Indemnitee shall have received notice of such service on any designated agent), but failure to notify the Indemnitors of any such claim shall not relieve them from liability which they may have to the person against whom such action is brought otherwise than on account of this indemnification. The Indemnitors will be entitled to participate at their own expense in the defense, or, if they so elect, to assume the defense of any suit brought to enforce any such liability, but if the Indemnitors elect to assume the defense, such defense shall be conducted by counsel chosen by them and satisfactory to the Indemnitees which are defendants in the suit. The Indemnitors shall promptly notify the Series of any litigation or proceedings in connection with the issuance or sale of the shares. 4 7. DURATION AND TERMINATION OF AGREEMENT. This Agreement shall become effective as of the date first above written and shall remain in force from year to year thereafter, but only so long as such continuance is specifically approved at least annually by (i) the Board of Trustees of the Series, or by the vote of a majority of the outstanding voting securities of the Series, cast in person or by proxy, and (ii) a majority of those trustees who are not parties to this Agreement or interested persons of any such party cast in person at a meeting called for the purpose of voting upon such approval. The Agreement may be terminated at any time without the payment of any penalty, by the Board of Trustees of the Series, by vote of a majority of the outstanding voting securities of the Series, or by Signator, or by JHLICO as to its obligations hereunder, on sixty days written notice to the other parties. This Agreement shall automatically terminate in the event of its assignment. The termination or amendment of this Agreement shall not affect the Indemnitors' indemnity obligations under Section 6 above with respect to any claim or dispute arising out of transactions or occurrences happening prior to said termination or amendment. The terms "assignment," "vote of a majority of the outstanding voting securities" and "interested person," when used in this Agreement, shall have the respective meanings specified in the 1940 Act and rules thereunder. 8. GOVERNING LAW. This Agreement shall be construed in accordance with the laws of the Commonwealth of Massachusetts and the applicable provisions of the 1940 Act and rules thereunder. 9. MISCELLANEOUS. No provision of this Agreement may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought. Neither Signator nor JHLICO shall disclose or use any records or information obtained hereunder in any manner whatsoever, except as expressly authorized hereunder, and each shall keep confidential any information obtained pursuant to its relationship with the Series set forth herein, and disclose such information only if the Series has authorized such disclosure, or if such disclosure is expressly required by appropriate federal or state regulatory authorities. Signator and JHLICO shall furnish state insurance regulatory authorities with any information or reports in connection with the services they provide to the Series hereunder which such authorities may request in order to ascertain whether the variable insurance product operations of any insurance company are being conducted in a manner consistent with applicable law or regulations. 10. LIMITATION OF LIABILITY. It is expressly agreed that the obligations of the Series hereunder shall not be binding upon any of the trustees, shareholders, officers, agents or employees of the Series personally, but only bind the trust property of the Series, as provided in the Series' Declaration of Trust. 5 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first set forth above. JOHN HANCOCK VARIABLE SERIES TRUST I By: /s/ Kathleen F. Driscoll --------------------------------- Name: Kathleen F. Driscoll --------------------------------- Title: President --------------------------------- SIGNATOR INVESTORS, INC. By: /s/ Wendy Benson --------------------------------- Name: Wendy Benson --------------------------------- Title: President --------------------------------- JOHN HANCOCK LIFE INSURANCE COMPANY By: /s/ Michele G. Van Leer --------------------------------- Name: Michele G. Van Leer --------------------------------- Title: Senior Vice President --------------------------------- 6 EX-99.(7)(B) 8 dex997b.txt FORM OF DISTRIBUTION AGREEMENT DISTRIBUTION AGREEMENT AGREEMENT, dated as of May 1, 2004, by and between John Hancock Variable Series Trust I (the "Trust"), on behalf of each of the one or more portfolios of the Trust listed in Appendix A (each such portfolio a "Participating Fund"), and Manulife Financial Securities LLC (the "Series Distributor"). WHEREAS, the Trust is a Massachusetts business trust which is registered as an open-end investment company under the Investment Company Act of 1940 (the "1940 Act") and sells its shares to insurance company separate accounts to which net premiums, contributions and considerations under variable insurance and annuity products ("Variable Products") are allocated for investment in the Trust ("Eligible Separate Accounts"); WHEREAS, the Trust has divided its shares into series, each representing a different Fund, has further divided the shares of each Fund into three classes of shares (NAV Class, Series I and Series II), and has adopted a plan with respect to the Series I and shares (collectively, the "Rule 12b-1 Classes") of each Participating Fund pursuant to Rule 12b-1 under the 1940 Act (the "Rule 12b-1 Plan"); WHEREAS, The Trust also has adopted a related plan under Rule 18f-3 (the "Rule 18f-3 Plan") under the 1940 Act; WHEREAS, the Rule 12b-1 Plan and the Rule 18f-3 Plan (together, the "Plans") provide that the Rule 12b-1 Classes of a Participating Fund of the Trust may be assessed with fees at rates specified in the Rule 12b-1 Plan; WHEREAS, the Trust desires the Series Distributor to act as a principal underwriter with respect to Series I and Series II shares of the Participating Fund; and WHEREAS, the Series Distributor is registered as a broker-dealer under the Securities Exchange Act of 1934 and is a member of the National Association of Securities Dealers, Inc. ("NASD"); NOW, THEREFORE, the Trust and the Series Distributor agree as follows: 1. Appointment and Acceptance The Trust hereby appoints the Series Distributor as principal underwriter and distributor of the shares of the Funds, and the Series Distributor hereby accepts that appointment; provided, however, that this appointment shall extend only to sales to Eligible Separate Accounts of Manufacturers Life Insurance Company (U.S.A.) (hereinafter, "Manufacturers USA") and Manufacturers Life Insurance Company of New York (hereinafter "Manufacturers New York") and Eligible Separate Accounts of such other insurance companies as the Trust shall have authorized in writing. 2. Rule 12b-1 Compensation to the Series Distributor 2.1. Each Participating Fund will pay Rule 12b-1 compensation to the Series Distributor up to the net effective annual rate indicated below for each Rule 12b-1 Class of the Fund's shares: Series I .40% Series II .60% These fees shall be accrued daily and payable monthly based on the current net assets of the applicable Rule 12b-1 Class of a Participating Fund's shares as to which the Series Distributor has served as principal underwriter (or that are exchanged or converted in any reorganization for other shares of any fund as to which the Series Distributor served as a principal underwriter). "Current net assets" for purposes of computing the amount of Rule 12b-1 Fee accrued with respect to any class of a Participating Fund's shares shall mean the net assets for that class of that Fund's shares for the most recent preceding day for which the net assets for that Fund were computed. The fee shall be payable as soon as possible after the last day of each calendar month. In the case of termination of this Agreement as to any class of a Participating Fund, the fees accrued for such shares through the date of termination will be paid. The Series Distributor waives any claim for Rule 12b-1 Fees in excess of the rates specified above. 2.2. The Series Distributor shall be entitled to no compensation for services rendered and expenses borne as principal underwriter and distributor other then as specified in this Section 2. 3. Authority of Series Distributor Without limiting the foregoing, in its capacity as principal underwriter and distributor, and acting as principal and not as agent for the Trust, the Series Distributor is authorized, from time to time, to enter into separate agreements with Manufacturers USA, with Manufacturers New York and with other insurance companies authorized pursuant to Section 1 hereof, and with any broker or other intermediary through whom a transaction is effected as to which the Series Distributor is acting as principal underwriter hereunder, which agreements may provide how much compensation out of any related Rule 12b-1 payments the Series Distributor will pay to any such company or person and how much of such payments, if any, will be retained by the Series Distributor, in each case, however, on terms and conditions not inconsistent with this Agreement or the Rule 12b-1 Plan. 4. Compliance with Plans Each party hereto agrees to comply with each provision of the Rule 12b-1 Plan or the Rule 18f-3 Plan (as they may be amended from time to time) that is applicable to that party. The Trust agrees to advise the Series Distributor of any change in either Plan. 2 5. Furnishing Certain Information Without limitation of any other provision of this Agreement, the parties hereto agree, upon request, to furnish to the Trustees of the Trust such information available to them that may be reasonably necessary (a) to evaluate the Rule 18f-3 Plan (or any successor or proposed successor to that Plan) in connection with any vote referred to in Rule 18f-3(d) or (b) to an informed determination of whether the Rule 12b-1 Plan (or any successor or proposed successor to such Plan), or any agreement related to such Plan, or any revisions thereto, should be approved or continued. Also, the Series Distributor shall furnish to the Trust, at least quarterly, reports as to the sales of Trust shares made pursuant to this Agreement. Such reports shall be in writing and include information on the amounts of Rule 12b-1 Fees expended for each Rule 12b-1 Class of each Participating Fund, the recipients of the Rule 12b-1 Fees expended by the Series Distributor or by affiliated and unaffiliated insurance companies, and the purposes for which such amounts were expended. Series Distributor hereby authorizes John Hancock Life Insurance Company to deliver these reports on the Series Distributor's behalf, if the Trustees of the Trust so request. These reports shall also include such information about expense apportionments or allocations, fee or expense waivers for any classes, and differences in shareholder voting patterns as among different classes of the same Participating Fund, and other pertinent matters as the Trustees may reasonably request. 6. Purchases and Redemptions of Shares 6.1. Purchases and redemptions of Series I and Series II shares of a Participating Fund shall be at the net asset value therefore as described in the Trust's prospectus and statement of additional information. 6.2. Sales, redemptions and repurchases shall be effected directly by the transfer agent of the Trust, as such, according to the terms of the Trust's transfer agency agreement, and payment for shares shall be transmitted by the transfer agent directly to the Trust's custodian. 6.3. The Trust shall have the right to suspend the redemption of shares of any of its Participating Funds pursuant to the conditions set forth in its Prospectus and Statement of Additional Information. The Trust shall also have the right to suspend the sale of shares of any or all of its Funds at any time when it is authorized to suspend redemption of such shares. The Trustees of the Trust also may refuse to sell shares of any Fund to any person, or suspend or terminate the offering of shares of any Fund, if such action is required by law or by regulatory authorities having jurisdiction or is, in the sole discretion of the Trustees acting in good faith and in light of their fiduciary duties under federal and any applicable state laws, in the best interests of such Fund and its shareholders (including Variable Product owners). 6.4. The Trust will give the Series Distributor prompt notice of any such suspension and shall promptly furnish such other information in connection with the sale and redemption of Participating Fund shares as the Series Distributor reasonably requests. 3 6.5. Issuance and transfer of the Trust's shares will be by book entry only. Share certificates will not be issued. Shares ordered from the Trust will be recorded on the transfer records of the Trust in an appropriate title for each shareholder. 7. Certain Documents and Expenses 7.1. The Trust will prepare and be responsible for filing with the SEC and any state regulatory authorities requiring such filing all shareholder reports, proxy materials and prospectuses and statements of additional information of the Trust. The Trust will bear the costs of registration and qualification of the shares of the Funds, preparation and filing of the documents listed in this paragraph and all taxes to which an issuer is subject on the issuance and transfer of its shares. 7.2. At the option of the Series Distributor, the Trust will either (a) provide the Series Distributor with as many copies of the Trust's current prospectus, statement of additional information, annual report, semi-annual report, proxy materials and other shareholder communications, including any amendments or supplements to any of the foregoing, as the Series Distributor may reasonably request with respect to the Participating Funds; or (b) provide the Series Distributor with camera ready copies of such documents in a form suitable for printing. To the extent that the Series Distributor requests multiple copies of documents pursuant to clause (a) above for marketing or other purposes, the Series Distributor shall bear the cost of such multiple copies. 8. Sales Material and Information 8.1. The Series Distributor will use its best efforts to ensure that any sales literature and other promotional material prepared by it or on its behalf in which the Trust, a Fund, any investment adviser of subadviser to any Fund is named, conforms to all requirements of all applicable federal and state laws and rules and regulations, including all applicable rules and regulations of the NASD. 8.2. The Series Distributor will not give any information or make any representations or statements on behalf of the Trust or concerning the Trust in connection with the sale of Fund shares, other than the information or representations contained in the registration statement, prospectus or statement of additional information for the Fund's shares, as such registration statement, prospectus and statement of additional information may be amended or supplemented from time to time, or in reports or proxy statements for the Trust, or in sales literature or other promotional material approved in writing by the Trust or its designee, except with the written approval of the Trust or its designee. 8.3. The Trust will use its best efforts to ensure that sales literature and other promotional material prepared by it or on its behalf in which the Series Distributor is named, conform to all requirements of all applicable federal rules and regulations of the NASD. 8.4. The Trust will not give any information or make any representations or statements on behalf of or concerning the Series Distributor except with the written permission of the Series Distributor or its designee. 4 8.5. Each party hereto will provide to each other party, to the extent it is relevant to the Contracts or the Trust, a copy of any comment letter received from the staff of the United States Securities and Exchange Commission ("SEC") or the NASD, and such party's response thereto, following any examination or inspection by the staff of the SEC or the NASD. 8.6. As used herein, the phrase "sales literature and other promotional material" includes, but is not limited to, advertisements (such as material published or designed for use in a newspaper, magazine, or other periodical, radio, television, telephone or tape recording, videotape display, sign or billboard, motion picture or other public medium), sales literature (i.e., any written communication distributed or made generally available to customers or the public, including brochures, circulars, research reports, market letters, form letters, seminar texts, reprints or excerpts of any other advertisement, sales literature or published article), educational or training materials or other communications distributed or made generally available to some or all agents or employees. 9. Representations and Warranties 9.1. Representations and Warranties of the Series Distributor (a) The Series Distributor represents and warrants that it is limited liability company duly organized or existing and in good standing under applicable law, and that, in discharging its functions hereunder, it will comply in all material respects with all applicable federal and state laws. (b) The Series Distributor represents and warrants that it will use all reasonable efforts to avoid offering or selling shares of a Participating Fund to any person or entity that is not (a) an insurance company that will hold such shares in a "segregated asset account" within the meaning of Treas. Reg. Section 1.817-5(e) through which public access to the Fund is available only pursuant "variable contracts," within the meaning of Section 817(d) of the Code or (b) other purchasers of the kind specified in Treas. Reg. Section 1.817-5(f)(3) as from time to time in effect; and the Series Distributor agrees to promptly notify the Trust if it has reason to believe that Fund shares are being held by or are being offered or sold to any person or entity not referred to in clause (a) or (b) above. 9.2. Representations and Warranties of the Trust (a) The Trust represents and warrants that it is lawfully organized and validly existing under the laws of the Commonwealth of Massachusetts and that it does and will at all times during the term of this Agreement comply in all material respects with the 1940 Act. (b) The Trust represents and warrants that shares of the Participating Fund offered and sold pursuant to this Agreement will be registered under the Securities Act of 1933 (the "1933 Act"), duly authorized for issuance and sold in compliance with the laws of the Commonwealth of Massachusetts and all applicable federal and state securities laws and that the Trust is and will remain during the term of this Agreement registered as an open-end management investment company under the 1940 Act. The Trust agrees that it will amend the registration statement for a Participating Fund's shares under the 1933 Act and the 1940 Act from time to time as required in order to permit the continuous offering of its shares in 5 accordance with the 1933 Act. The Trust will register and qualify the shares for sale in accordance with the laws of the various states only if and to the extent deemed advisable by the Trust or the Series Distributor. (c) The Trust represents and warrants that the registration statement for shares of a Participating Fund and any amendments or supplement thereto will, when they become effective, conform in all material respects to the requirements of the 1933 Act and the 1940 Act and the rules and regulations of the SEC thereunder and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, provided, however, that this representation and warranty will not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Trust by or on behalf of the Series Distributor or any holder of the Trust's shares expressly for use therein. 10. Notices Any notice required under this Agreement shall be sufficiently given when sent by registered or certified mail, by facsimile transmission (provided that a copy is also sent by registered or certified mail) or by a nationally recognized overnight delivery service, to the other party at the address of such party set forth below or at such other address as such party may from time to time specify in writing to the other party. If to the Trust: John Hancock Variable Series Trust I John Hancock Place P.O. Box 111 Boston, MA 021117 Attention: Raymond F. Skiba Fax No.: (617) 886-3746 If to Series Distributor: Manulife Financial Services, LLC P.O. Box 4700 Buffalo, NY 14240 - 4700 Attention: President 11. Continuation and Termination of this Agreement 11.1. This Agreement shall continue as to Series I and Series II classes of a Participating Fund's shares for a period of more than one year after it takes effect as to that class of that Fund only so long as such continuance is specifically approved as to that class of that Fund at least annually by votes of the majority of (a) the Trustees and (b) the Independent Trustees of the Trust cast in person at a meeting called for the purpose of voting on such continuance. 6 11.2. This Agreement shall terminate automatically in the event of its assignment. 11.3. This Agreement may be terminated at any time with respect to any class of a Participating Fund's shares, without payment of any penalty, by vote of a majority of the Independent Trustees or by vote of a majority of the outstanding voting securities representing that class of that Fund's shares, or by the Series Distributor, on 60 days' written notice to any other parties hereto. 11.4. Termination of this Agreement as to any Participating Fund or class of shares thereof shall not be deemed to extinguish any claim arising prior to such termination for breach of this Agreement or breach of any representation or warrantee herein. 12. Definitions As used in this agreement, (a) the term "Independent Trustees" shall mean those Trustees of the Trust who are not interested persons of the Trust, and have no direct or indirect financial interest in the operation of the Rule 12b-1 Plan or any agreements related to it, and (b) the terms "assignment" and "interested person" shall have the respective meanings specified in the 1940 Act and the rules and regulations thereunder, subject to such exemptions or interpretations as may be granted or issued by the SEC. 13. Miscellaneous 13.1. The rights, remedies and obligations contained in this Agreement are cumulative and are in addition to any and all rights, remedies and obligations, at law or in equity, to which the parties hereto are entitled or subject under state and federal laws. 13.2. This Agreement is executed on behalf of the Trustees of the Trust as Trustees and not individually, and the obligations of or arising out of this Agreement are not binding upon any of the Trustees or shareholders individually but are binding only upon the assets and property of the respective class of each Participating Fund. 13.3. This Agreement may be executed in two or more counterparts which together will constitute one and the same instrument. 13.4. If any provision of this Agreement is held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Agreement will not be affected thereby. 7 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written. JOHN HANCOCK VARIABLE SERIES TRUST I By: ------------------------------------- Name Title: MANULIFE FINANCIAL SECURITIES LLC By: The Manufacturers Life Insurance Company (U.S.A.) Its Managing Member By: ------------------------------------- Name: ----------------------------------- Title: ---------------------------------- 8 APPENDIX A to Distribution Agreement Dated as of May 1, 2004 Between John Hancock Variable Series Trust I (the "Trust") and Manulife Financial Services LLC The portfolios of the Trust that are deemed to be "Participating Funds," and to which the above-captioned Agreement therefore pertains, are as follows: International Equity Index Fund 9 EX-99.(10)(A) 9 dex9910a.txt RULE 12B-1 PLAN DATED MARCH 24, 2004 FOR SERIES I AND II JOHN HANCOCK VARIABLE SERIES TRUST I PLAN PURSUANT TO RULE 12b-1 UNDER THE INVESTMENT COMPANY ACT OF 1940 This Plan (the "Plan") is adopted by John Hancock Variable Series Trust I (the "Trust") pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the "1940 Act") and describes the material aspects of the financing by the Trust of distribution of the classes of securities specified herein that have been or may be issued by any separate series of the Trust ("Funds") in connection with variable annuity and variable life insurance contracts ("Contracts"). This Plan is intended to allow the Trust to finance such distribution expenses in a manner permitted by Rule 12b-1 under the 1940 Act ("Rule 12b-1"), subject to the requirements and conditions imposed by that rule, and provides for the payment of "service fees" as defined under Rule 2830 of the National Association of Securities Dealers, Inc. ("NASD"). This Plan may be revised or amended from time to time as provided below. Rule 12b-1 Fees Each Fund designated on Schedule A hereto ("Participating Fund") is authorized to pay on behalf of certain of its below-listed classes of shares, a fee (a "Rule 12b-1 Fee") to the principal underwriter and distributor of the shares of the class to which the fee is charged. The rate of the Rule 12b-1 Fee, as an annual percentage of the average daily net assets attributable to each such class that is subject to a 12b-1 Fee, is up to: -------------------------------- NAV class .0% -------------------------------- Series I .40% -------------------------------- Series II .60% -------------------------------- The Trust's principal underwriter and distributor of Series I and Series II classes of shares, Manulife Financial Securities LLC or its successor (the "Series Distributor"), may waive, or reimburse the applicable Participating Fund for any such fees, and a Participating Fund may pay an amount less than that called for by the above stated rates; provided that the Trust's Board of Trustees determines that no such waiver, reimbursement or other payment of less than the amount called for by the above stated rates causes this Plan to be less than reasonably likely to benefit the Trust, each Participating Fund, and each class of each Participating Fund's shares. All payments of Rule 12b-1 Fees shall be pursuant to a written agreement as described under "Rule 12b-1 Payment Agreements," below. Each such agreement shall be as approved from time to time by (a) the Trust's Board of Trustees and (b) the Independent Trustees, as defined below, in the manner required by Rule 12b-1 for such agreements. The Rule 12b-1 Fee charged to a class of any Participating Fund's shares shall not be used to finance expenses of any shares of any other class or any other Fund. Rule 12b-1 Fees shall be accrued daily and paid monthly or at such other intervals as the Trustees shall determine. Purposes to Which Rule 12b-1 Fees May be Applied To the extent consistent with applicable laws, regulations and rules, the Series Distributor may use the proceeds of Rule 12b-1 Fees from any class of a Participating Fund's shares as follows: (i) For payment of any expenses primarily intended to result in the sale or distribution of that class of that Fund's shares including, but not limited to, the following: (a) compensation to and expenses of employees of the Series Distributor or an affiliated insurer, including overhead and telephone expenses, who engage in the distribution of that class of that Fund's shares in connection with the distribution of Contracts under which that class of that Fund's shares is an investment option; (b) printing and distributing Fund prospectuses, statements of additional information and reports to prospective investors (through Contracts) in that class of that Fund's shares; (c) compensation to financial intermediaries and broker-dealers to pay or reimburse them for their services or expenses in connection with the distribution of Contracts under which that class of that Fund's shares is an investment option; (d) expenses relating to the development, preparation, printing, mailing and publication of advertisements, sales literature and other promotional materials describing and/or relating to that class of that Fund's shares or Contracts under which that class of that Fund's shares is an investment option; (e) expenses of holding seminars and sales meetings designed to promote the distribution (through Contracts) of that class of that Fund's shares; (f) expenses of obtaining information from and providing explanations to owners (or potential owners) of Contracts under which that class of that Fund's shares is an investment option, regarding that Fund's investment objectives and policies and other information about the Fund, including the performance of the Fund; (g) expenses of training sales personnel regarding that class of that Fund's shares; and (h) expenses of compensating sales personnel in connection with the allocation of cash values and premiums under Contracts to that class of that Fund's shares. (ii) For any expenses relating to shareholder or administrative services for holders of that class of a Fund's shares or owners of Contracts funded in insurance company separate accounts that invest in such shares; (iii) For the payment of "service fees" that come within Rule 2830(d)(5) of the Rules of Fair Practice of the NASD; provided, however, that any "service fee" component of the Rule 12b-1 Fees shall be no greater than .25% of average daily net assets. The Series Distributor may reallocate all or a portion of the service fee it receives to one or more affiliated or unaffiliated parties that have agreed to provide to beneficial owners of Series I and Series II shares those services encompassed by the term "personal service and/or the maintenance of shareholder accounts" as defined in Rule 2830(d)(5) of the Rules of Fair Practice of the NASD. Without limiting the foregoing, the Series Distributor may pay all or part of the Rule 12b-1 Fees from a Participating Fund to one or more affiliated and unaffiliated insurance companies that have issued Contracts for which that Fund serves as an investment vehicle as compensation for providing some or all of the types of services described in the preceding paragraph; this provision, however, does not obligate the Series Distributor to make any such payments of Rule 12b-1 Fees and does not limit the use that the Series Distributor may make of the Rule 12b-1 Fees it receives to such payments. (iv) If only part of any of the activities or expenses listed in above subsections (i), (ii) or (iii) (or of any other expenses or activities) is intended to result in sales of (or services to) a class of a Fund's shares, the Series Distributor may make a reasonable apportionment thereof, so as to apply Rule 12b-1 Fees borne by that class of that Fund's shares to the portion of such activities or expenses that pertains to the distribution of (or services to) that class of that Fund's shares; provided that any such apportionment shall be made pursuant to written policies and procedures. Approvals; Participating Funds Neither this Plan nor any agreement related to this Plan shall take effect as to any class of any Fund's shares until it has been approved as to that class of that Fund by votes of the majority of (a) the Trustees, and (b) the Independent Trustees of the Trust, cast in person at a meeting called for the purpose of voting on this Plan (or said agreement, as the case may be) and, to the extent required pursuant to Rule 12b-1 for any future Participating Fund, (c) shareholders of that Fund. This Plan shall continue in effect as to any class of a Participating Fund's shares for a period of more than one year after it takes effect as to that class of that Fund only so long as such continuance is specifically approved as to that class of that Fund at least annually in the manner provided for approval of this Plan in the paragraph immediately preceding this one. Reports to Trustees The Series Distributor shall provide to the Trustees and the Trustees shall review, at least quarterly, a written report of the amounts of Rule 12b-1 Fees expended for each class of each Fund, the recipients of the Rule 12b-1 Fees expended by the Series Distributor or by affiliated and unaffiliated insurance companies, and the purposes for which such amounts were expended; provided, however, that the Series Distributor shall, in a Rule 12b-1 Payment Agreement, authorize John Hancock Life Insurance Company to deliver these reports on the Series Distributor's behalf, if the Trustees so request. These reports shall also include such information about expense apportionments or allocations, fee or expense waivers for any classes, and differences in shareholder voting patterns as among different classes of the same Fund, and other pertinent matters as the Trustees may reasonably request. Rule 12b-1 Payment Agreements All agreements related to this Plan shall be in writing and shall provide: (a) that such agreement shall continue in effect with respect of any class of a Participating Fund's shares for a period of more than one year after it takes effect only so long as such continuance as to that class of that Fund is specifically approved at least annually in the manner provided for approval of this Plan above; (b) that the parties to such agreement will furnish such information as may be reasonably necessary (1) to evaluate any plan adopted by the Trust under Rule 18f-3 of the 1940 Act, in connection with any vote referred to in paragraph (d) of that rule or (2) to an informed determination of whether this Plan or any agreement related to this Plan, or any revision thereto, should be approved or continued; (c) that such agreement may be terminated at any time with respect to any class of a Participating Fund's shares, without payment of any penalty, by vote of a majority of the Independent Trustees or by vote of a majority of the outstanding voting securities representing that class of that Fund's shares, on 60 days' written notice to any other parties to the agreement; (d) that such agreement shall terminate automatically in the event of its assignment; and (e) that a Participating Fund's obligations under such agreement are not binding upon any of the Trust's Trustees, shareholders, officers, employees, or agents individually, or upon any of its other Funds, but are binding only upon the assets and property of the respective class of the Participating Fund. A Rule 12b-1 payment agreement may be in the form of a separate agreement or may be incorporated into another agreement, such as, for example, any agreement that appoints the recipient of Rule 12b-1 Fees as a principal underwriter of the Trust. Termination and Amendment This Plan may be terminated at any time with respect to any class of a Participating Fund's shares by vote of a majority of the Independent Trustees, or by vote of a majority of the outstanding voting securities representing that class of that Fund's shares. This Plan may not be amended to increase materially the amount of Rule 12b-1 Fees permitted to be charged to any class of a Participating Fund's shares, as set out in the table above, without approval by a vote of at least a majority of the outstanding voting securities representing that class of that Participating Fund, as well as approval in the manner provided above for approval of this Plan. Definitions As used in this Plan, (a) the term "Independent Trustees" shall mean those Trustees of the Trust who are not interested persons of the Trust, and have no direct or indirect financial interest in the operation of this Plan or any agreements related to it, and (b) the terms "assignment", "interested person" and "majority of the outstanding voting securities" shall have the respective meanings specified in the 1940 Act and the rules and regulations thereunder, subject to such exemptions or interpretations as may be granted or issued by the United States Securities and Exchange Commission. Adopted as of March 24, 2004 JOHN HANCOCK VARIABLE SERIES TRUST I Schedule A to Plan Pursuant to Rule 12b-1 (As adopted March 24, 2004) LIST OF PARTICIPATING FUNDS --------------------------- International Equity Index Fund EX-99.(10)(B) 10 dex9910b.txt RULE 18F-3 PLAN DATED FEB 11, 2004 JOHN HANCOCK VARIABLE SERIES TRUST I PLAN PURSUANT TO RULE 18F-3 UNDER THE INVESTMENT COMPANY ACT OF 1940 This Plan (the "Plan") is adopted by John Hancock Variable Series Trust I (the "Trust") pursuant to Rule 18f-3 under the Investment Company Act of 1940, as amended (the "1940 Act") and sets forth characteristics of, and conditions under which the Trust may offer, multiple classes of shares of each of its separate series (each, a "Fund"). This Plan is intended to allow the Trust to offer multiple classes of shares in a manner permitted in Rule 18f-3 under the 1940 Act, subject to the requirements and conditions imposed by that rule. This Plan may be revised or amended from time to time as provided below. Class Designations Each of the Trust's constituent Funds may from time to time issue one or more of the following classes of shares: Initial Class shares, Series I shares, Series II shares, Series III shares, and Series IV shares. Each of these classes will represent interests in the same portfolio investments of the Fund and, except as described herein, shall have the same rights and obligations as each other class. Each class shall be subject to any investment minimums and other conditions of eligibility as may be set forth in the Trust's prospectus or statement of additional information as from time to time in effect (collectively, the "Prospectus"). Class Characteristics Initial Class shares are offered at a public offering price that is equal to their net asset value ("NAV") without any initial sales charge, any contingent deferred sales charge ("CDSC"), or any fee imposed in accordance with Rule 12b-1 under the 1940 Act ("Rule 12b-1 Fee"). Series I, II, III, and IV shares (the "Rule 12b-1 Classes") are offered at their NAV, without an initial sales charge or a CDSC, but may be subject to a Rule 12b-1 Fee, as described in the Prospectus. Allocations to Each Class Expense Allocations Rule 12b-1 Fees payable by a Fund with respect to any Rule 12b-1 Class of its shares, and such other expenses, as the Trustees may in the future amend this Plan to provide (collectively, "Class Expenses"), shall be allocated, to the extent practicable, on a class-by-class basis, subject to proper approval of a plan under Rule 12b-1 pursuant to which such Rule 12b-1 Fees are paid. Notwithstanding the previous sentence, no amount shall be considered a "Class Expense," to the extent that (1) it includes investment management fees, investment advisory fees, custodial fees or other expenses relating to the management of the Trust's assets, or (2) such expenses are not actually incurred in a different amount, or to a different degree, or are not of a different kind, with respect to the classes. All expenses of a Fund that are not herein designated as "Class Expenses" ("Fund Expenses") will be allocated to each class thereof on the basis of the net assets of that class in relation to the net assets of the Fund. Notwithstanding the above, the Trust may allocate all of a Fund's Fund Expenses on the basis of the relative net assets attributable to settled shares of each class of that Fund's shares, if the Fund is a "Daily Dividend Fund," as permitted by Rule 18f-3(c)(1)(iii) under the 1940 Act. Waivers and Reimbursements The recipient of any Rule 12b-1 Fees may waive any Rule 12b-1 Fees, and any person may reimburse a Fund for any such fees or for any Class Expenses, on a voluntary or contractual basis. Such waiver or reimbursement may be applicable to one or more of the Funds or classes thereof and may be at different rates for one or more Funds or classes thereof. Each class of a Fund, however, shall be credited with the amount (and no more) of any waiver or reimbursement that results from expenses of that class, and no waiver or reimbursement shall be made that causes the operation of this Plan not to be in the best interests of the Trust, any Fund thereof, or any class of a Fund's shares. Income, Gains, and Losses Income and realized and unrealized capital gains and losses shall be allocated to each class on the basis of the net assets of that class in relation to the net assets of the Fund. However, the Fund shall allocate income and realized and unrealized capital gains and losses to each share within a class based on relative net assets attributable to settled shares of each class, as permitted by Rule 18f-3(a)(1)(iii) under the 1940 Act, if the Fund uses that method for allocating Fund expenses. Conversion and Exchange Any class of shares may automatically convert into another class in accordance with its terms and subject to the terms and conditions of Rule 18f-3 that apply to such conversions. Shares of each class generally will be permitted to be exchanged for shares of any class in another Fund, subject, however, to the terms and conditions of any sales, distribution or underwriting agreements, or other agreements pursuant to which those shares are issued or Rule 12b-1 Fees are paid. Dividends Dividends and any other distributions paid by the Trust with respect to shares of any Fund, to the extent any dividends or distributions are paid, will be allocated as between the Fund's classes on the same basis as that Fund's Fund Expenses are allocated. 2 Voting Rights Each share of each Fund entitles the shareholder of record to one vote. Each class of shares of the Fund will, in accordance with its terms, vote separately as a class on any action that Rule 12b-1 requires to be taken with respect to any Rule 12b-1 Plan that affects that class; any matter submitted to shareholders that relates solely to that class's arrangement under this Plan; any matter submitted to shareholders in which the interests of one class differ from the interests of any other class; and any other matters for which class voting is required under applicable law. Responsibility of the Trustees; Conflicts On an ongoing basis, the Trustees will monitor the Trust and each Fund for the existence of any material conflicts among the interests of any classes of shares. Such a conflict, for example, might arise from the use of waivers or reimbursements of fees or expenses or any other expense allocation procedures that are adverse to the interests of participants in one or more classes of one or more Funds' shares. Such conflicts could also be manifested by differences in voting patterns as among participants in one class of a Fund's shares, as compared with another class. The Trustees, including a majority of the independent Trustees, shall take such action as is reasonably necessary to eliminate any such material conflict that may develop. If a material irreconcilable conflict arises, the Trust's investment adviser and/or one or more recipients of Rule 12b-1 Fees from the Fund in question, at their own cost, will take action to ensure that conflict does not persist (including, if necessary, establishing one or more new registered management investment companies). The obligation to bear such costs of curing any material irreconcilable conflict will be included in a written agreement of each obligated entity, which agreements shall be approved in advance by the Trustees. Reports to the Trustees The investment adviser and the recipients of Rule 12b-1 Fees from the Fund in question will be responsible for reporting any potential or existing conflicts among the Fund's classes of shares to the Trustees. In addition, the Trustees will receive quarterly and annual statements concerning expenditures, as contemplated by paragraph (b)(3)(ii) of Rule 12b-1. In the statements, only expenditures properly attributable to the direct or indirect sale or servicing of a particular class of a Fund's shares shall be used to justify any Rule 12b-1 Fee charged to that class of that Fund. The statements, including the allocations upon which they are based, will be subject to the review of the Trustees in the exercise of their fiduciary duties. Future Funds This Plan shall not apply to any class of shares of any Fund that is created after the date of this Plan's adoption, unless and until such applicability has been approved in the manner required for Plans of this type by Rule 18f-3. 3 Amendments This Plan may be amended from time to time in accordance with the provisions and requirements of Rule 18f-3 under the 1940 Act. Adopted as of February 11, 2004. 4 EX-99.(10)(C) 11 dex9910c.txt AMENDMENT TO RULE 18F-3 AMENDMENT DATED AS OF MARCH 24, 2004 TO PLAN PURSUANT TO RULE 18f-3 UNDER THE INVESTMENT COMPANY ACT OF 1940 OF JOHN HANCOCK VARIABLE SERIES TRUST I (the "Trust") The Trust's Plan Pursuant to Rule 18f-3 adopted February 11, 2004 ("Rule 18f-3 Plan") is hereby amended as of March 24, 2004, in the manner and to the extent set forth below: Designation of Initial Share Class The phrase "Initial Class shares" is deleted wherever shown in the Rule 18f-3 Plan and the phrase "NAV Class shares" is inserted in its place. Deletion of Definition of Net Asset Value The phrases "at their net asset value ('NAV')" and "at their NAV" are deleted in the section of the Rule 18f-3 Plan entitled "Class Characteristics" and the phrase "at their net asset value" is inserted in its place. Adopted as of March 24, 2004 EX-99.(16) 12 dex9916.txt POWERS OF ATTORNEY POWER OF ATTORNEY The undersigned member of the Board of Trustees of John Hancock Variable Series Trust I does hereby constitute and appoint Michele G. Van Leer, Kathleen F. Driscoll, Ronald J. Bocage, Karen Q. Visconti and Arnold R. Bergman, and each of them, with full power of substitution, her true and lawful attorneys and agents to execute, in the name of, and on behalf of, the undersigned as a member of said Board of Trustees, the Registration Statements under the Securities Act of 1933 and the Investment Company Act of 1940, and each amendment to the Registration Statements, to be filed for John Hancock Variable Series Trust I with the Securities and Exchange Commission and to take any and all action and to execute in the name of, and on behalf of, the undersigned as a member of said Board of Trustees or otherwise any and all other instruments, including applications for exemptions from such Acts, which said attorneys and agents deem necessary or advisable to enable John Hancock Variable Series Trust I to comply with the Securities Acts of 1933, as amended, the Investment Company Act of 1940, as amended, and the rules, regulations and requirements of the Securities and Exchange Commission in respect thereof; and the undersigned hereby ratifies and confirms as her own act and deed all that each of said attorneys and agents shall do or cause to be done by virtue hereof. Each of said attorneys and agents shall have, and may exercise, all of the powers hereby conferred. IN WITNESS WHEREOF, the undersigned has hereunto set her hand on the date shown. June 13, 2001 /s/ Michele G. Van Leer - ------------- -------------------------------------- Date Michele G. Van Leer Chairman and Trustee POWER OF ATTORNEY The undersigned member of the Board of Trustees of John Hancock Variable Series Trust I does hereby constitute and appoint Michele G. Van Leer, Kathleen F. Driscoll, Ronald J. Bocage, Karen Q. Visconti and Arnold R. Bergman, and each of them, with full power of substitution, her true and lawful attorneys and agents to execute, in the name of, and on behalf of, the undersigned as a member of said Board of Trustees, the Registration Statements under the Securities Act of 1933 and the Investment Company Act of 1940, and each amendment to the Registration Statements, to be filed for John Hancock Variable Series Trust I with the Securities and Exchange Commission and to take any and all action and to execute in the name of, and on behalf of, the undersigned as a member of said Board of Trustees or otherwise any and all other instruments, including applications for exemptions from such Acts, which said attorneys and agents deem necessary or advisable to enable John Hancock Variable Series Trust I to comply with the Securities Acts of 1933, as amended, the Investment Company Act of 1940, as amended, and the rules, regulations and requirements of the Securities and Exchange Commission in respect thereof; and the undersigned hereby ratifies and confirms as her own act and deed all that each of said attorneys and agents shall do or cause to be done by virtue hereof. Each of said attorneys and agents shall have, and may exercise, all of the powers hereby conferred. IN WITNESS WHEREOF, the undersigned has hereunto set her hand on the date shown. June 13, 2001 /s/ Kathleen F. Driscoll - ------------- -------------------------------------- Date Kathleen F. Driscoll Vice Chairman, President and Trustee POWER OF ATTORNEY The undersigned member of the Board of Trustees of John Hancock Variable Series Trust I does hereby constitute and appoint Michele G. Van Leer, Kathleen F. Driscoll, Ronald J. Bocage, Karen Q. Visconti and Arnold R. Bergman, and each of them, with full power of substitution, his true and lawful attorneys and agents to execute, in the name of, and on behalf of, the undersigned as a member of said Board of Trustees, the Registration Statements under the Securities Act of 1933 and the Investment Company Act of 1940, and each amendment to the Registration Statements, to be filed for John Hancock Variable Series Trust I with the Securities and Exchange Commission and to take any and all action and to execute in the name of, and on behalf of, the undersigned as a member of said Board of Trustees or otherwise any and all other instruments, including applications for exemptions from such Acts, which said attorneys and agents deem necessary or advisable to enable John Hancock Variable Series Trust I to comply with the Securities Acts of 1933, as amended, the Investment Company Act of 1940, as amended, and the rules, regulations and requirements of the Securities and Exchange Commission in respect thereof; and the undersigned hereby ratifies and confirms as his own act and deed all that each of said attorneys and agents shall do or cause to be done by virtue hereof. Each of said attorneys and agents shall have, and may exercise, all of the powers hereby conferred. IN WITNESS WHEREOF, the undersigned has hereunto set his hand on the date shown. June 13, 2001 /s/ Hassell H. McClellan - ------------- -------------------------------------- Date Hassell H. McClellan Trustee POWER OF ATTORNEY The undersigned member of the Board of Trustees of John Hancock Variable Series Trust I does hereby constitute and appoint Michele G. Van Leer, Kathleen F. Driscoll, Ronald J. Bocage, Karen Q. Visconti and Arnold R. Bergman, and each of them, with full power of substitution, her true and lawful attorneys and agents to execute, in the name of, and on behalf of, the undersigned as a member of said Board of Trustees, the Registration Statements under the Securities Act of 1933 and the Investment Company Act of 1940, and each amendment to the Registration Statements, to be filed for John Hancock Variable Series Trust I with the Securities and Exchange Commission and to take any and all action and to execute in the name of, and on behalf of, the undersigned as a member of said Board of Trustees or otherwise any and all other instruments, including applications for exemptions from such Acts, which said attorneys and agents deem necessary or advisable to enable John Hancock Variable Series Trust I to comply with the Securities Acts of 1933, as amended, the Investment Company Act of 1940, as amended, and the rules, regulations and requirements of the Securities and Exchange Commission in respect thereof; and the undersigned hereby ratifies and confirms as her own act and deed all that each of said attorneys and agents shall do or cause to be done by virtue hereof. Each of said attorneys and agents shall have, and may exercise, all of the powers hereby conferred. IN WITNESS WHEREOF, the undersigned has hereunto set her hand on the date shown. June 13, 2001 /s/ Diane C. Kessler - ------------- -------------------------------------- Date Diane C. Kessler Trustee POWER OF ATTORNEY The undersigned member of the Board of Trustees of John Hancock Variable Series Trust I does hereby constitute and appoint Michele G. Van Leer, Kathleen F. Driscoll, Ronald J. Bocage, Karen Q. Visconti and Arnold R. Bergman, and each of them, with full power of substitution, her true and lawful attorneys and agents to execute, in the name of, and on behalf of, the undersigned as a member of said Board of Trustees, the Registration Statements under the Securities Act of 1933 and the Investment Company Act of 1940, and each amendment to the Registration Statements, to be filed for John Hancock Variable Series Trust I with the Securities and Exchange Commission and to take any and all action and to execute in the name of, and on behalf of, the undersigned as a member of said Board of Trustees or otherwise any and all other instruments, including applications for exemptions from such Acts, which said attorneys and agents deem necessary or advisable to enable John Hancock Variable Series Trust I to comply with the Securities Acts of 1933, as amended, the Investment Company Act of 1940, as amended, and the rules, regulations and requirements of the Securities and Exchange Commission in respect thereof; and the undersigned hereby ratifies and confirms as her own act and deed all that each of said attorneys and agents shall do or cause to be done by virtue hereof. Each of said attorneys and agents shall have, and may exercise, all of the powers hereby conferred. IN WITNESS WHEREOF, the undersigned has hereunto set her hand on the date shown. June 13, 2001 /s/ Elizabeth G. Cook - ------------- -------------------------------------- Date Elizabeth G. Cook Trustee POWER OF ATTORNEY The undersigned member of the Board of Trustees of John Hancock Variable Series Trust I does hereby constitute and appoint Michele G. Van Leer, Kathleen F. Driscoll, Ronald J. Bocage, Karen Q. Visconti and Arnold R. Bergman, and each of them, with full power of substitution, his true and lawful attorneys and agents to execute, in the name of, and on behalf of, the undersigned as a member of said Board of Trustees, the Registration Statements under the Securities Act of 1933 and the Investment Company Act of 1940, and each amendment to the Registration Statements, to be filed for John Hancock Variable Series Trust I with the Securities and Exchange Commission and to take any and all action and to execute in the name of, and on behalf of, the undersigned as a member of said Board of Trustees or otherwise any and all other instruments, including applications for exemptions from such Acts, which said attorneys and agents deem necessary or advisable to enable John Hancock Variable Series Trust I to comply with the Securities Acts of 1933, as amended, the Investment Company Act of 1940, as amended, and the rules, regulations and requirements of the Securities and Exchange Commission in respect thereof; and the undersigned hereby ratifies and confirms as his own act and deed all that each of said attorneys and agents shall do or cause to be done by virtue hereof. Each of said attorneys and agents shall have, and may exercise, all of the powers hereby conferred. IN WITNESS WHEREOF, the undersigned has hereunto set his hand on the date shown. June 13, 2001 /s/ Robert F. Verdonck - ------------- -------------------------------------- Date Robert F. Verdonck Trustee EX-99.(17)(C) 13 dex9917c.txt ANNUAL REPORT OF THE INTERNATIONAL EQUITY INDEX FUND Inception: May 2, 1988 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND INDEPENDENCE INVESTMENT LLC D. Nolan - -------------------------------------------------------------------------------- .. In 2003, the Fund returned 41.99%, underperforming its customized benchmark. .. On November 1st, the Fund's benchmark was changed from a primarily GDP weighted benchmark to a market capitalization weighted benchmark (the MSCI All Country World Free ex-US Index). This index provides broad exposure to both developed and emerging market equities. .. The Fund's investment objective is to track the long-term performance of broad-based equity indices of foreign companies in developed and emerging markets as measured by the MSCI All Country World Free ex-US Index. .. The manager seeks to track the performance of its benchmark by investing in a representative sample of issues selected through proprietary quantitative techniques. Issues are selected to best match the risk characteristics of the index, including country and sector exposures. [CHART] Line Chart Historical Fund Return $10,000 Investment made 12/31/93 (10-Year Period) International Equity Index International Equity Fund Index Benchmark(1) ------------- ---------------------- 12/31/1993 10,000.00 10,000.00 1/31/1994 13,320.64 14,421.38 2/28/1994 13,165.42 14,383.89 3/31/1994 12,478.86 13,766.82 4/29/1994 12,713.92 14,354.66 5/31/1994 12,862.54 14,275.71 6/30/1994 12,530.95 14,481.28 7/29/1994 12,819.11 14,623.20 8/31/1994 13,412.54 14,972.69 9/30/1994 13,133.71 14,504.05 10/31/1994 13,396.96 14,989.93 11/30/1994 12,520.14 14,273.41 12/30/1994 12,401.68 14,366.19 1/31/1995 11,708.88 13,817.40 2/28/1995 11,908.32 13,781.48 3/31/1995 12,340.79 14,645.58 4/28/1995 12,712.55 15,200.64 5/31/1995 12,972.79 15,022.80 6/30/1995 12,847.88 14,762.90 7/31/1995 13,561.39 15,685.58 8/31/1995 13,175.93 15,091.10 9/29/1995 13,362.66 15,389.90 10/31/1995 13,130.99 14,980.53 11/30/1995 13,191.91 15,401.48 12/29/1995 13,395.71 16,025.24 1/31/1996 13,606.81 16,094.15 2/29/1996 13,761.02 16,152.09 3/29/1996 13,892.48 16,499.36 4/30/1996 14,407.05 16,982.79 5/31/1996 14,260.73 16,673.71 6/28/1996 14,292.36 16,772.08 7/31/1996 13,686.10 16,285.69 8/30/1996 13,793.59 16,324.78 9/30/1996 14,051.46 16,762.28 10/31/1996 13,964.56 16,594.66 11/29/1996 14,589.37 17,258.44 12/31/1996 14,626.33 17,040.99 1/31/1997 14,373.63 16,447.96 2/28/1997 14,427.57 16,721.00 3/31/1997 14,159.30 16,786.21 4/30/1997 14,260.03 16,878.53 5/30/1997 15,461.21 17,980.70 6/30/1997 16,261.79 18,976.83 7/31/1997 16,773.41 19,288.05 8/29/1997 14,945.68 17,851.09 9/30/1997 16,026.08 18,854.32 10/31/1997 13,854.46 17,410.08 11/28/1997 13,849.83 17,235.98 12/31/1997 13,891.23 17,391.11 1/31/1998 13,901.32 18,191.10 2/27/1998 14,968.54 19,362.60 3/31/1998 15,575.41 19,962.84 4/30/1998 15,991.94 20,124.54 5/29/1998 16,086.96 20,414.34 6/30/1998 16,281.99 20,610.31 7/31/1998 16,414.69 20,884.43 8/31/1998 14,326.78 18,138.13 9/30/1998 13,881.02 17,637.52 10/30/1998 15,383.40 19,605.86 11/30/1998 16,129.04 20,627.33 12/31/1998 16,783.26 21,462.74 1/29/1999 16,820.14 21,490.64 2/26/1999 16,250.77 20,820.13 3/31/1999 17,103.05 21,921.51 4/30/1999 17,757.57 22,807.14 5/28/1999 16,897.58 21,616.61 6/30/1999 17,768.81 22,708.25 7/30/1999 18,185.56 23,273.68 8/31/1999 18,351.79 23,436.60 9/30/1999 18,481.01 23,724.87 10/29/1999 19,100.24 24,514.91 11/30/1999 19,943.20 25,529.83 12/31/1999 21,964.24 28,090.47 1/31/2000 20,675.58 26,714.03 2/29/2000 21,380.17 27,641.01 3/31/2000 21,956.62 28,398.37 4/28/2000 20,545.20 26,566.68 5/31/2000 20,148.57 25,929.08 6/30/2000 20,856.49 27,041.44 7/31/2000 19,865.47 25,683.96 8/31/2000 20,057.16 25,956.21 9/29/2000 19,086.01 24,648.01 10/31/2000 18,456.28 23,839.56 11/30/2000 17,652.71 22,776.31 12/31/2000 18,138.35 23,336.61 1/31/2001 18,503.20 23,852.35 2/28/2001 17,218.76 22,230.39 3/30/2001 16,015.75 20,729.84 4/30/2001 17,113.36 22,068.99 5/31/2001 16,571.05 21,395.88 6/30/2001 16,002.68 20,636.33 7/31/2001 15,594.05 20,097.72 8/31/2001 15,226.40 19,599.30 9/28/2001 13,458.20 17,345.38 10/31/2001 13,786.89 17,815.44 11/30/2001 14,416.76 18,597.54 12/31/2001 14,456.93 18,664.49 1/31/2002 13,771.57 17,796.59 2/28/2002 13,950.25 17,983.45 3/29/2002 14,793.86 18,994.12 4/30/2002 14,910.47 19,233.45 5/31/2002 15,106.58 19,562.34 6/28/2002 14,514.59 18,773.98 7/31/2002 13,088.04 16,894.70 8/31/2002 13,076.08 16,909.91 9/28/2002 11,585.10 14,970.34 10/31/2002 12,027.79 15,627.54 11/30/2002 12,663.02 16,460.49 12/31/2002 12,261.97 15,937.04 1/31/2003 8,991.13 11,630.86 2/28/2003 8,818.76 11,404.06 3/29/2003 8,574.05 11,074.48 4/30/2003 9,388.30 12,148.71 5/31/2003 9,962.63 12,948.09 6/28/2003 10,329.08 13,427.17 7/31/2003 10,636.48 13,872.95 8/31/2003 11,017.53 14,357.12 9/28/2003 11,316.09 14,767.73 10/31/2003 12,005.35 15,758.65 11/30/2003 12,268.41 16,102.18 12/31/2003 13,181.59 17,330.78 Value on 12/31/03: - ------------------ $13,182 International Equity Index Fund $17,331 International Equity Index Benchmark(1) MORNINGSTAR CATEGORY+: .. Foreign Large Blend MORNINGSTAR RISK+: .. Average (VL/VUL) .. Average (VA) MORNINGSTAR RATING+: .. *****(VL/VUL) .. *****(VA) TOP TEN HOLDINGS (as of December 31, 2003) % of Assets ------ BP Amoco plc 2.1% Vodafone AirTouch plc 1.9% HSBC Holdings plc 1.9% GlaxoSmithKline plc 1.5% Total Fina SA 1.5% Royal Dutch Petroleum Co. 1.4% Novartis AG 1.2% Nestle SA 1.1% Toyota Motor Corp. 1.0% Nokia Oyj 1.0% AVERAGE ANNUAL TOTAL RETURNS* International International Equity Equity Index Fund Index Benchmark(1) ----------------- -------------------- 1 Year 41.99% 44.57% 3 Years -1.36 -0.43 5 Years 0.74 1.43 10 Years 2.80 5.65 DIVERSIFICATION BY REGION AND COUNTRY (3) (as of December 31, 2003) % of Assets ------ Europe (excluding U.K.) 38.4% United Kingdom (U.K.) 22.3% Japan 18.5% Pacific Basin (excluding Japan) 6.8% Emerging Markets 6.4% Canada 5.0% United States 2.7% DIVERSIFICATION BY REGION(4) Developed Markets 91% Emerging Markets 9% (1) The International Equity Benchmark represents the MSCI EAFE from May 1988 to April 1998 and then MSCI EAFE GDP weighted from May 1998 to June 1999 and then 90% MSCI EAFE GDP/10% MSCI Emerging Markets Free from July 1999 to October 2003 and now the MSCI All Country World Free excluding U.S. from November 2003 to present. * Total returns are for the period ended December 31, 2003. Returns represent past performance, assume reinvestment of all distributions, and are not indicative of future performance. Investment returns and principal value of fund shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The performance of the fund on this page is reported net of Trust level charges (i.e. investment management fees and operating expenses). It does not reflect expense and charges of the applicable separate accounts and variable products, all of which vary to a considerable extent and are described in your product prospectus. There are special risks associated with international investing, including currency fluctuations, political and economic instability, foreign taxation and different accounting standards, as outlined in the current prospectus. Performance would be lower if expenses and charges of the separate accounts and products were reflected. + Source: MorningStar, Inc. Data as of 12/31/03. VL represents Variable Life subaccounts, VUL represents Variable Universal Life subaccounts and VA represents Variable Annuity subaccounts Hancock VL/VUL subaccounts were rated against 367 VL/VUL subaccounts and 570 VA subaccounts in the Morningstar Foreign Large Blend category. This represents the Morningstar 3 year rating. (3) Calculations based upon country in which security is traded (listed). (4) Calculations based upon country in which security is domiciled. STATEMENT OF ASSETS AND LIABILITIES JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- (000's Omitted) ASSETS Long term investments at cost (including $8,172 of securities loaned (Note B)) .................................... $142,128 Net unrealized appreciation on investments ........................ 13,002 Short-term investments at value ................................... 12,050 -------- Total investments ........................................... 167,180 Foreign currency at value (cost $47) .............................. 47 Receivable for: Investments sold ............................................... 1 Fund shares sold ............................................... 80 Interest ....................................................... 5 Dividends ...................................................... 237 Futures contracts variation margin ............................. 9 Forward foreign currency exchange contracts sold ........................................................ 74 Other assets ................................................... 6 -------- Total assets ...................................................... 167,639 -------- LIABILITIES Payables for: Collateral for securities on loan .............................. 8,571 Forward foreign currency exchange contracts purchased ................................................... 12 Other liabilities .............................................. 20 -------- Total liabilities ................................................. 8,603 -------- Net assets ........................................................ $159,036 ======== Shares of beneficial interest outstanding ......................... 11,508 -------- Net asset value per share ......................................... $ 13.82 ======== Composition of net assets: Capital paid-in ................................................ $169,313 Accumulated net realized loss on investments, futures and foreign currency transactions ................... (22,996) Net investment loss ............................................ (421) Net unrealized appreciation of: Investments ................................................. 13,002 Futures ..................................................... 79 Translation of assets and liabilities in foreign currencies ............................................... 59 -------- Net assets ........................................................ $159,036 ======== STATEMENT OF OPERATIONS JOHN HANCOCK VARIABLE SERIES TRUST I For the Year Ended December 31, 2003 - -------------------------------------------------------------------------------- (000's Omitted) INVESTMENT INCOME Interest ...................................................... $ 57 Dividends ..................................................... 2,738 Securities lending ............................................ 146 ------- Total investment income ............................................. 2,941 ------- EXPENSES Investment advisory fee ....................................... 214 Auditors fees ................................................. 16 Custodian fees ................................................ 253 Legal fees .................................................... 9 Printing & mailing fees ....................................... 10 Trustees' fees ................................................ 4 Other fees .................................................... 10 ------- Total expenses ...................................................... 516 Less expenses reimbursed ...................................... (189) ------- Net expenses ........................................................ 327 ------- Net investment income ............................................... 2,614 ------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investments ................................................... (7,135) Financial futures contracts ................................... 282 Foreign currency transactions ................................. 516 Change in unrealized appreciation (depreciation) on: Investments ................................................... 50,873 Futures ....................................................... 171 Translation of assets and liabilities in foreign currencies ......................................... (4) ------- Net realized and unrealized gain .................................... 44,703 ------- Net increase in net assets resulting from operations ....................................................... $47,317 ======= See notes to financial statements. STATEMENT OF CHANGES IN NET ASSETS JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- (000's Omitted)
Year Ended Year Ended December 31, December 31, 2003 2002 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS From operations Net investment income ............................................ $ 2,614 $ 2,058 Net realized loss ................................................ (6,337) (8,662) Change in net unrealized appreciation (depreciation) ............. 51,040 (10,666) -------- -------- Net increase (decrease) in net assets resulting from operations 47,317 (17,270) Distributions to shareholders from: Net investment income ............................................ (3,183) (2,052) Realized gains ................................................... (981) -------- -------- Decrease in net assets resulting from distributions ........... (4,164) (2,052) From fund share transactions: Proceeds from shares sold ........................................ 97,542 92,695 Distributions reinvested ......................................... 4,164 2,052 Payment for shares redeemed ...................................... (84,740) (98,528) -------- -------- Increase (decrease) in net assets from fund share transactions 16,966 (3,781) -------- -------- NET INCREASE (DECREASE) IN NET ASSETS ............................... 60,119 (23,103) NET ASSETS Beginning of Period .............................................. 98,917 122,020 -------- -------- End of Period .................................................... $159,036 $ 98,917 ======== ======== Analysis of fund share transactions: Sold ............................................................. 9,143 8,608 Reinvested ....................................................... 358 183 Redeemed ......................................................... (7,833) (9,057) -------- -------- Net increase (decrease) in fund shares outstanding .................. 1,668 (266) ======== ========
See notes to financial statements. FINANCIAL HIGHLIGHTS JOHN HANCOCK VARIABLE SERIES TRUST I - -------------------------------------------------------------------------------- Selected data for each share of beneficial interest outstanding throughout the period indicated:
International Equity Index Fund --------------------------------------------------------------- Year Ended December 31, --------------------------------------------------------------- 2003 2002 2001 2000 1999 -------- ------- -------- -------- -------- Net Assets Value at Beginning of Period .................. $ 10.05 $ 12.07 $ 15.39 $ 19.64 $ 15.56 Income from Investment Operations: Net Investment Income ................................. 0.24 0.21 0.22 0.23 0.21 Net Realized and Unrealized Gain (Loss) on Investments(a) ..................................... 3.91 (2.02) (3.32) (3.64) 4.51 -------- ------- -------- -------- -------- Total From Investment Operations ...................... 4.15 (1.81) (3.10) (3.41) 4.72 Less Distributions: Distribution from Net Investment Income ............... (0.29) (0.21) (0.17) (0.18) (0.21) Distribution from Net Realized Gains on Investments ... (0.09) (0.59) (0.38) Distribution from Excess of Net Investment Income/ Gains .............................................. (0.05) Distribution from Capital Paid-in ..................... (0.05) (0.07) -------- ------- -------- -------- -------- Total Distributions ................................... (0.38) (0.21) (0.22) (0.84) (0.64) -------- ------- -------- -------- -------- Net Assets Value at End of Period ........................ $ 13.82 $ 10.05 $ 12.07 $ 15.39 $ 19.64 ======== ======= ======== ======== ======== Total Investment Return(b) ............................... 41.99% (15.18)% (20.30)% (17.42)% 30.87% Ratios/Supplemental Data: Ratio of Operating Expenses to Average Net Assets ..... 0.27%(c) 0.28%(c) 0.27%(c) 0.28%(c) 0.31%(c) Ratio of Net Investment Income to Average Net Assets ............................................. 2.13% 1.85% 1.66% 1.40% 1.26% Portfolio Turnover Rate ............................... 37.90% 17.55% 8.31% 14.86% 19.01% Net Assets End of Period (000s Omitted) .................. $159,036 $98,917 $122,020 $195,012 $244,017
(a) The amount shown at this caption for each share outstanding throughout the year may not accord with the change in the aggregate gains and losses in the portfolio securities for the year because of the timing of the purchases and withdrawals of the shares in relation to the fluctuating market values of the portfolio. (b) The performance does not reflect expenses and charges of the applicable separate accounts and variable products, all of which vary to a considerable extent and are described in your product's prospectus. (c) Expense ratio is net of expense reimbursements. Had such reimbursements not been made the expense ratio would have been .42%, .46%, .40%, .37%, and .38% for the years ended December 31, 2003, 2002, 2001, 2000, and 1999, respectively. SCHEDULE OF INVESTMENTS JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Market Name of Issuer Shares Value -------------- ------- ------- (000's) COMMON STOCK Australia - 3.8% AMP, Ltd. (JR) ......................................... 50,472 $ 190 BHP Steel * (BF) ....................................... 33,357 141 Broken Hill Proprietary Co., Ltd. * (BF) ............... 78,691 722 Coles Myer, Ltd. * (JF) ................................ 23,600 134 Commonwealth Bank of Australia (JP) .................... 27,670 614 CSL, Ltd. * (JO) ....................................... 2,600 35 CSR, Ltd. (BD) ......................................... 65,000 91 Foster's Brewing Group, Ltd. * (JG) .................... 39,000 132 General Property Trust (JS) ............................ 168,892 380 HHG plc * (JR) ......................................... 50,472 36 Lend Lease Corp. (JS) .................................. 10,600 80 National Australia Bank, Ltd. (JP) ..................... 31,556 712 News Corp., Ltd. (JA) .................................. 31,113 281 Onesteel. Ltd. (BF) .................................... 37,275 57 Orica, Ltd. (BC) ....................................... 8,400 88 Pacific Dunlop, Ltd. (BL) .............................. 11,800 57 QBE Insurance Group, Ltd. * (JR) ....................... 30,618 244 Rinker Group (JR) ...................................... 18,000 89 Rio Tinto, Ltd. (BF) ................................... 5,600 157 Santos, Ltd. * (BB) .................................... 39,200 203 Stockland (JS) ......................................... 56,157 221 Tabcorp Holdings, Ltd. (BZ) ............................ 16,400 139 Telstra Corp., Ltd. * (J1) ............................. 43,000 156 Westfield Trust (JS) ................................... 142,560 382 Westpac Banking Corp., Ltd. (JP) ....................... 31,200 376 WMC Resources, Ltd. * (BB) ............................. 19,300 82 WMC, Ltd. (BF) ......................................... 19,300 95 Woolworth's, Ltd. * (JF) ............................... 16,300 145 ------ 6,039 Austria - 0.3% Bank Austria Credit * (JP) ............................. 2,049 105 Bohler-Uddeholm AG (BF) ................................ 1,600 108 BWT AG (BO) ............................................ 2,000 37 Erste Bank * (JP) ...................................... 658 81 Flughafen Wien AG (BT) ................................. 2,178 102 ------ 433 Belgium - 1.1% Bekaert NV (BK) ........................................ 890 57 Colruyt NV (JF) ........................................ 970 93 Compagnie Maritime Belge SA (BR) ....................... 521 42 D' Ieteren SA (JB) ..................................... 390 80 Delhaize SA (JF) ....................................... 2,855 147 DEXIA * (JP) ........................................... 7,205 124 Electrabel SA (J3) ..................................... 254 80 Exmar SA * (BO) ........................................ 521 22 Fortis * (JR) .......................................... 13,470 271 GPE Bruxelles LAM (JQ) ................................. 2,388 134 Interbew (JG) .......................................... 5,301 141 KBC Bancassurance Holding NV (JP) ...................... 2,540 119 NV Union Miniere SA (BF) ............................... 1,461 102 Solvay SA (BC) ......................................... 1,215 105 UCB SA * (JO) .......................................... 3,900 $ 147 ------ 1,664 Brazil - 0.0% Aracruz Celulose SA - ADR * (BG) ....................... 1,500 55 Canada - 4.9% Abitibi Consolidated, Inc. * (BG) ...................... 9,699 78 Alcan Aluminum, Ltd. (BF) .............................. 5,575 261 ATI Technologies, Inc. (EP) ............................ 5,104 77 Bank Nova Scotia Halifax * (JP) ........................ 8,445 430 Bank of Montreal (JP) .................................. 8,151 337 Barrick Gold Corp. (BF) ................................ 9,441 214 BCE, Inc. (J1) ......................................... 5,282 118 Biovail Corp. * (JO) ................................... 2,999 65 Bombardier, Inc. - Cl. B * (BH) ........................ 27,549 117 Brascan Corp. - Cl. A (BL) ............................. 3,244 100 Brookfield Properties Corp. * (JS) ..................... 3,034 88 Canadian Imperial Bank of Commerce (JP) ................ 6,082 301 Canadian National Railway Co. (BS) ..................... 3,587 228 Canadian Natural Resources, Ltd. (BB) .................. 2,759 140 Canadian Pacific Railway (BS) .......................... 4,175 118 Canadian Tire, Ltd. - Cl. A * (JD) ..................... 2,230 68 Celestica, Inc. * (JY) ................................. 4,634 70 Cognos, Inc. * (JV) .................................... 1,996 61 CP Ships, Ltd. Common (BR) ............................. 3,706 77 Dofasco, Inc. (BF) ..................................... 2,944 82 Enbridge, Inc. (J4) .................................... 2,600 108 Encana Corp. (BB) ...................................... 8,422 332 Fairmont Hotels Resorts, Inc. (BZ) ..................... 2,964 81 Goldcorp, Inc. (BF) .................................... 4,202 67 Great West Lifeco, Inc. (JR) ........................... 2,299 81 Husky Energy, Inc. (BB) ................................ 4,971 90 Imperial Oil, Ltd. (BB) ................................ 2,992 133 Inco, Ltd. * (BF) ...................................... 3,788 151 Investors Group, Inc. * (JQ) ........................... 3,075 74 Loblaw Co., Ltd. (JF) .................................. 2,200 114 Magna International, Inc. (BU) ......................... 1,687 136 MDS, Inc. * (JM) ....................................... 4,378 68 Molson Cos., Ltd. (JG) ................................. 2,729 76 National Bank of Canada (JP) ........................... 3,571 119 Nexen, Inc. (BB) ....................................... 3,127 113 Noranda, Inc. (BF) ..................................... 6,028 96 Nortel Networks Corp. (JW) ............................. 70,287 299 Petro Canada (BB) ...................................... 4,246 210 Placer Dome, Inc. (BF) ................................. 7,841 141 Potash Corp. of Saskatchewan, Inc. * (JS) .............. 1,128 98 Power Corp. Canada (JQ) ................................ 3,014 113 Power Financial Corp. (JQ) ............................. 2,532 97 Royal Bank of Canada (JP) .............................. 10,639 509 Shaw Communications, Inc. (JA) ......................... 5,140 80 Shell Canada, Ltd. (BB) ................................ 2,271 108 SCHEDULE OF INVESTMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Market Name of Issuer Shares Value -------------- ------ ------- (000's) COMMON STOCK - Continued Canada - Continued Sun Life Financial, Inc. * (JR) ........................ 10,490 $ 262 Suncor Energy , Inc. (BB) .............................. 8,607 216 Talisman Energy, Inc. (BB) ............................. 2,702 154 Teck Cominco, Ltd. - Cl. B (BF) ........................ 5,191 88 Thomson Corp. (BZ) ..................................... 4,493 164 Transalta Corp. (J5) ................................... 4,891 70 TransCanada Corp. (J4) ................................. 8,180 176 Weston George, Ltd. (JF) ............................... 1,156 93 ------ 7,747 Czech Republic - 0.1% Ceske Energeticke Zavody AS (J3) ....................... 21,600 123 Komercni Banka AS * (JP) ............................... 900 85 ------ 208 Denmark - 0.6% AS Dampskibsselskabet Svendborg - Cl. B (BR) .......................................... 16 115 Danisco AS (JH) ........................................ 3,050 136 Danske Bank (JP) ....................................... 8,587 201 ISS AS (BO) ............................................ 1,650 81 Novo Nordisk AS (JO) ................................... 3,148 128 Novozymes AS - Ser. B (BC) ............................. 4,450 162 Tele Danmark AS (J1) ................................... 4,150 150 Vestas Wind Systems AS (BK) ............................ 2,500 41 ------ 1,014 Finland - 1.2% Nokia Oyj * (JW) ....................................... 91,721 1,584 Sampo Insurance Co. plc (JR) ........................... 4,700 49 Stora Enso Oyj * (BG) .................................. 7,903 106 Tietoenator Oyj (JU) ................................... 1,338 37 UPM-Kymmene Corp. * (BG) ............................... 7,900 150 ------ 1,926 France - 8.0% Accor SA (BZ) .......................................... 4,483 203 Air Liquide * (BC) ..................................... 1,412 249 Alcatel * (JW) ......................................... 23,577 303 Altran Technologies SA * (JU) .......................... 6,277 81 Arcelor (BF) ........................................... 7,731 135 AXA * (JR) ............................................. 27,474 587 BNP Paribas * (JP) ..................................... 13,566 853 Bouygues SA * (J2) ..................................... 3,607 126 Business Objects (JV) .................................. 1,259 44 Cap Gemini SA * (JU) ................................... 1,627 72 Carrefour SA * (JF) .................................... 11,330 621 Casino Guichard-Perrachon SA (JF) ...................... 1,045 102 CIE De St. Gobain * (BI) ............................... 6,517 319 Club Mediterranee SA (BZ) .............................. 838 31 Dassault Systemes SA * (JV) ............................ 1,995 91 EADS, Inc. (BH) ........................................ 5,569 132 Essilor International (JL) ............................. 2,365 122 France Telecom * (J1) .................................. 20,955 598 Groupe Danone * (JH) ................................... 1,748 $ 285 L'Oreal SA * (JK) ...................................... 6,925 567 Lafarge SA * (BD) ...................................... 2,579 229 Lagardere SCA (JA) ..................................... 3,125 180 LVMH * (Louis Vuitton Moet Hennessy) (BY) ...................................... 4,273 311 Michelin (BU) .......................................... 3,462 159 Pernod Ricard (JG) ..................................... 1,045 116 Peugoet SA (BV) ........................................ 1,567 80 Pinault-Printemps-Redoute SA * (JD) .................... 1,465 141 Publicis Groupe SA * (JA) .............................. 2,645 86 Renault (BV) ........................................... 3,207 221 Rhone-Poulenc SA * (JO) ................................ 12,657 836 Sagem SA (JW) .......................................... 731 78 Sanofi-Synthelabo SA * (JO) ............................ 7,657 576 Schneider SA * (BK) .................................... 4,580 300 Societe BIC SA (BO) .................................... 1,234 57 Societe Generale - Cl. A * (JP) ........................ 5,636 497 Societe Television Francaise (JA) ...................... 4,028 140 STMicroelectronics * (J0) .............................. 10,712 290 SUEZ (J5) .............................................. 15,282 307 Thomson CFS (BH) ....................................... 1,747 59 Thomson Multimedia * (JY) .............................. 2,834 60 Total Fina SA - Cl. B * (BB) ........................... 12,377 2,299 Unibail SA (JS) ........................................ 1,797 168 Valeo SA (BU) .......................................... 1,489 60 ------- 12,771 Germany - 5.7% Adidas-Salomon AG (BY) ................................. 1,005 114 Allianz AG * (JR) ...................................... 4,706 593 Altana AG (JO) ......................................... 1,460 88 BASF AG (BC) ........................................... 12,086 679 Bayer AG * (JL) ........................................ 11,401 333 Bayerische Vereinsbank AG * (JP) ....................... 6,678 154 Commerzbank AG (JP) .................................... 8,364 164 Continental AG (A2) .................................... 2,656 101 DaimlerChrysler AG * (BV) .............................. 15,055 702 Deutsche Bank AG * (JP) ................................ 9,067 750 Deutsche Boerse AG (JQ) ................................ 2,010 110 Deutsche Post AG (BP) .................................. 7,129 147 Deutsche Telekom AG * (J1) ............................. 37,337 683 E.On AG (J3) ........................................... 9,846 642 Fresenius Medical Care AG (JM) ......................... 1,209 86 Hypo Real Estate (JS) .................................. 3,568 89 Infineon Technologies AG * (J0) ........................ 8,538 118 Linde AG (BM) .......................................... 1,694 91 Lufthansa AG (BQ) ...................................... 4,687 78 MAN AG (BM) ............................................ 2,695 82 Metro AG (JD) .......................................... 2,786 123 Muenchener Rueckversicherungs- Gesellschaft AG * (JR) .............................. 2,643 320 Preussag AG (BZ) ....................................... 3,781 79 Puma AG (BY) ........................................... 463 82 SCHEDULE OF INVESTMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Market Name of Issuer Shares Value -------------- ------- ------- (000's) COMMON STOCK - Continued Germany - Continued RWE AG (J5) ............................................ 6,823 $ 270 SAP AG * (JV) .......................................... 3,683 618 Schering AG * (JO) ..................................... 3,162 160 Siemens AG * (BL) ...................................... 16,196 1,296 Thyssen Krupp AG * (BF) ................................ 6,252 123 Volkswagen AG (BV) ..................................... 3,711 206 ------ 9,081 Greece - 0.4% Bank of Piraeus (JP) ................................... 8,434 101 Commercial Bank of Greece (JP) ......................... 3,706 93 EFG Eurobank (JP) ...................................... 8,088 156 Hellenic Bottling Co. SA (JG) .......................... 5,160 107 Intracom SA (JW) ....................................... 5,252 36 Panafon Hellenic Telecom SA (J2) ....................... 15,869 124 Titan Cement Co. SA (BD) ............................... 2,217 91 ------ 708 Hong Kong - 1.5% Beijing Datang Power Generation Co., Ltd. (J3) ........................................... 263,000 188 Cathay Pacific Airways (BQ) ............................ 20,000 38 China Southern Airlines Co. Ltd * (BQ) ................................................ 207,000 89 China Telecom, Ltd. * (J2) ............................. 16,199 50 CLP Holdings, Ltd. (J3) ................................ 42,100 200 Guangshen Railway Co., Ltd. * (BS) ..................... 499,000 141 Hang Seng Bank, Ltd. * (JP) ............................ 25,000 328 Henderson Land Development Co., Ltd. * (JS) ......................................... 22,000 97 HSBC Holdings plc (JP) ................................. 4,900 77 Hutchison Whampoa, Ltd. * (BL) ......................... 41,500 305 Island Cable Communications * (JA) ..................... 6,200 1 Johnson Electric Holdings, Ltd. * (BK) ................. 33,000 42 Legend Holdings * (JX) ................................. 122,000 52 Li & Fung, Ltd. * (BO) ................................. 36,000 62 New World Development Co., Ltd. (JS) ................... 48,000 39 PCCW, Ltd. (FB) ........................................ 31,876 21 Sun Hung Kai Properties, Ltd. * (JS) ................... 46,000 379 Swire Pacific, Ltd. - Cl. A * (JQ) ..................... 23,500 145 Wharf Holdings, Ltd. (JQ) .............................. 62,000 172 ------ 2,426 Hungary - 0.2% Gedeon Richter * (JO) .................................. 900 106 Mol Magyar Olaj-es Gazipari (BB) ....................... 3,600 109 OTP Bank (JP) .......................................... 10,900 140 ------ 355 Ireland - 0.5% Allied Irish Banks plc * (JP) .......................... 8,467 135 Bank of Ireland (JP) ................................... 17,060 233 CRH plc * (BD) ......................................... 9,000 185 Elan Corp. (JO) ........................................ 5,813 $ 40 Irish Life & Permanent plc (JR) ........................ 4,553 73 Kerry Group plc (JH) ................................... 5,800 109 Ryanair Holdings (BQ) .................................. 4,845 40 ------ 815 Israel - 0.4% Bank Hapoalim (JP) ..................................... 43,700 108 Bezeq Israeli Telecommunication Corp., Ltd. (J1) .................................... 23,600 27 IDB Holding Corp., Ltd. (JQ) ........................... 5,100 100 Koor Industries, Ltd. * (J1) ........................... 83 3 Makteshim-Agan Industries, Ltd. (BC) ................... 26,900 101 Teva pharmaceutical Industries, Ltd. * (JO) ................................................ 5,200 296 ------ 635 Italy - 3.2% Alleanza Assicurazioni * (JR) .......................... 9,339 102 Assicurazioni Generali * (JR) .......................... 15,818 418 Autogrill SpA (BZ) ..................................... 5,723 82 Banca Fideuram (JP) .................................... 15,000 89 Banca Intesa SpA (JP) .................................. 76,966 301 Banca Nazionale del Lavoro (JP) ........................ 41,580 99 Banca Popolare di Milano (JP) .......................... 18,100 118 BCA Di Roma * (JP) ..................................... 31,073 91 BCE Pop Unite (BO) ..................................... 7,459 135 BCP Pop Veron (JP) ..................................... 8,371 142 Enel SpA * (J3) ........................................ 30,057 204 ENI * (BB) ............................................. 52,773 995 Fiat SpA * (BV) ........................................ 13,040 100 Finmeccanica SA (BH) ................................... 145,025 113 Luxottica Group (JL) ................................... 4,176 72 Mediaset SpA * (JA) .................................... 13,210 157 Mediobanca SpA (JP) .................................... 11,141 121 Monte Paschi Siena (JP) ................................ 29,322 93 Riunione Adriatica di Sicorta SpA (JR) ................. 5,255 89 San Paolo-IMI SpA * (JP) ............................... 7,083 92 Seat Pagine Gialle * (JA) .............................. 80,911 77 Telecom Italia (J1) .................................... 266,885 699 Telecom Italia Mobile SpA (J2) ......................... 69,129 375 UniCredito Italiano SpA * (JP) ......................... 64,732 349 ------ 5,113 Japan - 18.0% Acom Co., Ltd. * (JQ) .................................. 2,300 104 Advantest (J0) ......................................... 2,000 159 Aiful Corp. * (JQ) ..................................... 1,000 73 Ajinomoto Co., Inc. (JH) ............................... 12,000 138 Alps Electric Co. (JY) ................................. 6,000 88 Asahi Breweries, Ltd. (JG) ............................. 13,000 119 Asahi Chemical Industry Co., Ltd. (BC) ................. 26,000 141 Asahi Glass Co., Ltd. (BI) ............................. 18,000 148 SCHEDULE OF INVESTMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Market Name of Issuer Shares Value -------------- ------ ------- (000's) COMMON STOCK - Continued Japan - Continued Bank of Yokohama, Ltd. * (JP) ........................... 23,000 $107 Bridgestone Corp. (BU) .................................. 13,000 175 Canon, Inc. * (JZ) ...................................... 13,000 606 Casio Computer Co. (BW) ................................. 9,000 95 Central Japan Railway Co. (BS) .......................... 13 112 Chiba Bank, Ltd. (B0) ................................... 16,000 66 Chubu Electric Power (J3) ............................... 10,100 211 Chugai Pharmaceutical Co., Ltd. * (JO) .................. 7,600 109 Citizen Watch Co., Ltd. (JY) ............................ 10,000 92 Comsys Holdings * (JX) .................................. 5,000 32 Credit Saison Co., Ltd. (JQ) ............................ 3,600 81 CSK Corp. * (JU) ........................................ 2,100 76 Dai-Ichi Pharmaceutical Co., Ltd. * (JO) ................................................. 7,000 126 Dai-Nippon Printng Co., Ltd. (BO) ....................... 13,000 183 Daido Life Insurance (JR) ............................... 25 74 Daikin Industries, Ltd. (BM) ............................ 5,000 116 Daito Trust Construction Co., Ltd. (BJ) ................. 2,300 68 Daiwa Bank Holdings (JP) ................................ 92,000 116 Daiwa House Industry Co., Ltd. (BW) ..................... 10,000 106 Daiwa Securities Group, Inc. (JQ) ....................... 2,900 20 Denso Corp. (BU) ........................................ 8,400 165 East Japan Railway Co. (BS) ............................. 60 283 Eisai Co. Ltd. * (JO) ................................... 4,900 132 Fanuc, Ltd. * (BM) ...................................... 2,400 144 Fast Retailing Co. (JE) ................................. 1,100 67 Fuji Photo Film * (BX) .................................. 9,000 291 Fujisawa Pharmeceutical Co., Ltd. * (JO) ................................................. 7,000 149 Fujitsu, Ltd. * (JX) .................................... 33,000 195 Gunze, Ltd. (BY) ........................................ 14,000 63 Hirose Electric Co., Ltd. * (JY) ........................ 1,100 126 Hitachi, Ltd. (JY) ...................................... 54,000 326 Honda Motor Co. * (BV) .................................. 14,300 635 Hoya Corp. * (JY) ....................................... 200 18 Ito-Yokado Co., Ltd. * (JD) ............................. 7,000 220 Itochu Corp. (BN) ....................................... 34,000 112 Japan Tobacco, Inc. (JI) ................................ 21 154 JFE Holdings, Inc. * (BF) ............................... 8,800 240 Joyo Bank, Ltd. (JP) .................................... 29,000 95 JSR Corp. (BC) .......................................... 4,000 89 Jusco Co., Ltd. * (JD) .................................. 4,800 161 Kajima Corp. (BJ) ....................................... 25,000 81 Kansai Electric Power Co., Inc. (J3) .................... 800 14 KAO Corp. (JJ) .......................................... 10,000 203 Kawasaki Kisen (BR) ..................................... 23,000 114 Keihin Electric Express Railway Co., Ltd. (BS) ............................................ 17,000 100 Keio Teito Electric Railway (BS) ........................ 14,000 73 Keyence Corp. (JY) ...................................... 700 148 Kinki Nippon Railway (BS) ............................... 33,000 99 Kirin Brewery Co. * (JG) ................................ 14,000 119 Komatsu, Ltd. (BM) ...................................... 28,000 178 Konami Co., Ltd. (JV) ................................... 3,000 $ 87 Konica Corp. (BX) ....................................... 11,000 148 Kubota Corp. * (BM) ..................................... 25,000 103 Kuraray Co., Ltd. (BC) .................................. 10,000 84 Kyocera Corp. * (JY) .................................... 3,300 220 Kyushu Electric Power (J3) .............................. 6,300 108 Lawson (JF) ............................................. 1,600 55 Mabuchi Motor Co. * (JY) ................................ 900 69 Marubeni Corp. (BN) ..................................... 38,000 73 Marui Co., Ltd. * (JD) .................................. 10,000 126 Matsushita Electric Industrial Co. * (BW) ................................................. 27,000 374 Matsushita Electric Works (BK) .......................... 10,000 90 Millea Holdings, Inc. * (JR) ............................ 23 301 Minebea Co., Ltd. (BM) .................................. 12,000 61 Mitsubishi Chemical Corp. (BC) .......................... 43,000 112 Mitsubishi Corp. (BN) ................................... 3,000 32 Mitsubishi Electric Corp. (BK) .......................... 43,000 179 Mitsubishi Estate Co., Ltd. * (JS) ...................... 19,000 180 Mitsubishi Heavy Industries, Ltd. * (BM) ................................................. 58,000 161 Mitsubishi Tokyo Finance (JP) ........................... 73 570 Mitsui & Co., Ltd. (BN) ................................. 1,000 8 Mitsui Fudosan Co., Ltd. * (JS) ......................... 15,000 136 Mitsui Marine & Fire Insurance Co., Ltd. * (JR) .......................................... 23,000 189 Mitsui Mining & Smelting Co., Ltd. ...................... (BF) ................................................. 17,000 71 Mitsui OSK Lines, Ltd. (BR) ............................. 24,000 117 Mitsui Petrochemical Co. (BC) ........................... 18,000 105 Mitsui Trust Holdings (JP) .............................. 17,000 95 Mizuho Financial GB * (JQ) .............................. 110 334 Murata Manufacturing Co., Ltd. * (JY) ................... 4,600 249 NEC Corp. * (JX) ........................................ 29,000 214 Nidec Corp. * (JY) ...................................... 900 86 Nikko Securities Co., Ltd. * (JQ) ....................... 28,000 156 Nikon Corp. (J0) ........................................ 8,000 121 Nintendo Corp., Ltd. (BW) ............................... 2,100 196 Nippon Building Fund (JS) ............................... 11 71 Nippon Express Co., Ltd. (BS) ........................... 22,000 104 Nippon Mitsubishi Oil Co., Ltd. (BB) .................... 36,000 183 Nippon Steel Co. (BF) ................................... 19,000 41 Nippon Telegraph & Telephone Corp. * (J1) ................................................. 95 458 Nippon Unipac Holding, Co. (BG) ......................... 27 139 Nippon Yusen Kabushiki Kaisha (BR) ...................... 27,000 122 Nissan Motor Acceptance Corp. (BV) ...................... 45,700 522 Nitto Denko Corp. * (BK) ................................ 3,200 170 Nomura Securities Co., Ltd. * (JQ) ...................... 33,000 562 NTN Corp. (BM) .......................................... 13,000 62 NTT Data Corp. (JU) ..................................... 33 125 NTT Mobile Communications Network, Inc. * (J2) .......... 317 719 Obayashi Corp. (BJ) ..................................... 16,000 72 SCHEDULE OF INVESTMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Market Name of Issuer Shares Value -------------- ------ ------- (000's) COMMON STOCK - Continued Japan - Continued Oji Paper Co. (BG) ..................................... 17,000 $ 110 Oki Electric Industry Co. * (J1) ....................... 16,000 63 Olympus Optical Co. * (JL) ............................. 6,000 130 Omron Corp. (JY) ....................................... 5,000 102 Oriental Land Co., Ltd. (BZ) ........................... 2,000 123 Orix Corp. * (JQ) ...................................... 2,100 174 Osaka Gas Co. (J4) ..................................... 42,000 114 Pioneer Corp. * (BW) ................................... 5,000 138 Promise Co., Ltd. * (JQ) ............................... 2,600 113 Ricoh Co., Ltd. (JZ) ................................... 13,000 257 Rohm Co., Ltd. * (J0) .................................. 2,100 246 Sankyo Co., Ltd. * (JO) ................................ 7,700 145 Sanyo Electric Co. * (BW) .............................. 32,000 167 Secom Co. * (BO) ....................................... 4,500 168 Sekisui House, Ltd. * (BW) ............................. 13,000 134 Seven-Eleven Japan * (JF) .............................. 8,000 243 Sharp Corp. (BW) ....................................... 18,000 284 Shin-Etsu Chemical Co. * (BC) .......................... 6,600 270 Shionogi & Co., Ltd. * (JO) ............................ 8,000 149 Shiseido Co., Ltd. * (JK) .............................. 8,000 97 Shizuoka Bank, Ltd. (JP) ............................... 13,000 96 SMC Corp. * (BM) ....................................... 1,400 174 Softbank Corp. (JT) .................................... 3,900 119 Sony Corp. * (JY) ...................................... 16,400 568 Stanley Electric (BU) .................................. 3,800 74 Sumitomo Chemical Co. (BC) ............................. 26,000 107 Sumitomo Corp. * (BO) .................................. 20,000 149 Sumitomo Electric Industries (BK) ...................... 15,000 134 Sumitomo Metal Industries (BF) ......................... 102,000 101 Sumitomo Metal Mining Co. (BF) ......................... 17,000 126 Sumitomo Mitsui GR (JP) ................................ 71 378 Sumitomo Realty & Development (JS) ..................... 8,000 70 Sumitomo Trust & Banking (JQ) .......................... 23,000 135 Taisei Corp. (BJ) ...................................... 20,000 73 Taisho Pharmaceutical Co., Ltd. * (JO) ................. 5,000 89 Takashimaya Co. (JD) ................................... 9,000 64 Takeda Chemical Industries * (BC) ...................... 15,100 599 Takefuji Corp. * (JQ) .................................. 2,020 94 TDK Corp. * (JY) ....................................... 2,400 173 Teijin, Ltd. (BC) ...................................... 25,000 74 Terumo Corp. * (JL) .................................... 5,200 99 The Bank of Fukuoka, Ltd. (JP) ......................... 20,000 84 Tobu Railway Co., Ltd. (BS) ............................ 22,000 79 Tohoku Electric Power (J3) ............................. 6,700 111 Tokyo Electric Power (J3) .............................. 19,700 432 Tokyo Electron, Ltd. * (J0) ............................ 3,100 236 Tokyo Gas Co. (J4) ..................................... 47,000 168 Tokyo Style Co. (BY) ................................... 6,000 65 Tokyu Corp. * (BS) ..................................... 26,000 133 Tonengeneral Sekiyu (BB) ............................... 8,000 66 Toppan Printing Co. * (JA) ............................. 16,000 167 Toray Industries, Inc. * (BC) .......................... 33,000 138 Toshiba Corp. * (JX) ................................... 54,000 205 Tostem Corp. (BI) ...................................... 6,000 116 Toto, Ltd. (BI) ........................................ 8,000 $ 68 Toyobo Co. (BY) ........................................ 32,000 70 Toyota Motor Corp. * (BV) .............................. 48,300 1,632 UFJ Holdings, Inc. * (JP) .............................. 67 322 Ushio, Inc. (BK) ....................................... 3,000 50 Wacoal Corp. * (BY) .................................... 8,000 66 West Japan Railway (01) ................................ 25 98 Yamada Denki Co. (JE) .................................. 2,300 77 Yamaha Corp. (BX) ...................................... 3,800 75 Yamanouchi Pharmaceutical Co., Ltd. * (JO) ............. 6,200 193 Yamato Transport Co., Ltd. (BP) ........................ 12,000 141 Yasuda F & M Insurance (JR) ............................ 15,000 123 Yokogawa Electric (JY) ................................. 8,000 116 ------- 28,649 Malaysia - 0.6% Berjaya Sports Toto Berhad (BZ) ........................ 39,000 42 Commerce Asset Holdings * (JP) ......................... 44,000 48 Gamuda Berhad (BJ) ..................................... 22,000 37 IJM Corporation Berhad (BJ) ............................ 19,000 23 IJM Plantations (BO) ................................... 7,600 2 Malayan Banking Berhad * (JP) .......................... 66,000 168 Malaysia International Shipping Berhad (BR) ........... 27,000 82 Public Bank Berhad (JP) ................................ 91,250 74 Resorts World Berhad * (BZ) ............................ 21,000 56 Sime Darby Berhad * (BL) ............................... 68,000 93 Telekom Malaysia Berhad (J1) ........................... 40,000 88 Tenaga Nasional Berhad (J3) ............................ 28,000 70 YTL Corp., Berhad (J3) ................................. 76,460 87 ------- 870 Mexico - 0.7% America Movil SA de CV - Ser L * (J2) .................. 162,000 223 Cemex SA de CV * (BD) .................................. 24,000 125 Cifra SA de CV - Ser. V * (JD) ......................... 30,000 86 Fomento Economico Mexicano SA de CV * (JG) ............. 20,000 74 GF BBVA Bancomer - Ser. B (JP) ......................... 70,000 60 Grupo Carso SA de CV - Ser. A1 * (BL) .................. 16,000 56 Grupo Modelo SA de CV - Ser. C * (JG) .................. 34,000 81 Grupo Televisa SA * (JA) ............................... 54,000 108 Kimberly-Clark de Mexico SA de CV * (BG) ............... 22,000 56 Nuevo Grupo Mexico (BF) ................................ 18,000 46 Telephonos de Mexico SA - Ser. L (J1) .................. 63,031 104 U.S. Commercial Corp. - Ser. B1 (BL) ................... 16,000 7 ------- 1,026 SCHEDULE OF INVESTMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Market Name of Issuer Shares Value -------------- ------ ------- (000's) COMMON STOCK - Continued Netherlands - 4.1% ABN Amro Holding NV * (JP)............................... 27,165 $ 635 Aegon NV * (JR).......................................... 27,787 411 Akzo Nobel NV * (BC) .................................... 5,304 205 ASM Lithography Holding NV (J0) ......................... 5,100 101 Elsevier NV * (JA)....................................... 22,877 284 Heineken NV * (JG)....................................... 2,968 113 ING Groep NV (JQ) ....................................... 31,865 742 Koninklijke * (Royal) Philips Electronics NV (JY)........ 22,807 665 Koninklijke KPN NV * (JY)................................ 36,643 283 Royal Dutch Petroleum Co. * (BB)......................... 40,573 2,137 TNT Post Group NV (BP)................................... 5,610 131 Unilever NV * (JH)....................................... 10,965 716 Wolters Kluwer NV * (JA)................................. 4,000 62 ------ 6,485 New Zealand - 0.3% Carter Holt Harvey, Ltd. (BG)............................ 37,800 47 Contact Energy Limited (J3).............................. 40,900 144 Fisher & Paykel AP (BW).................................. 28,996 73 Fisher & Paykel Industries, Inc. (JL).................... 8,443 70 Fletcher Building (BD)................................... 31,200 87 The Warehouse Group, Ltd. (JD)........................... 29,000 97 ------ 518 Norway - 0.5% Aker Kvaerner - Notes (BJ)............................... 380 7 Den Norske Bank (JP)..................................... 18,760 125 Elkem ASA (BF)........................................... 700 21 Merkantildata ASA (JU)................................... 9,800 8 Norsk Hydro ASA (BL)..................................... 84 5 Norske Skogindustrier ASA - Cl. A * (BG)................. 5,100 97 Opticom AS (JX).......................................... 160 2 Smedvig * (BA)........................................... 3,600 27 Smedvig ASA * (BA)....................................... 4,600 29 Statoil ASA * (BB)....................................... 8,908 100 Storebrand ASA (JR)...................................... 16,140 105 Tandberg ASA (BJ)........................................ 3,920 29 Telenor AS * (J1)........................................ 22,160 145 Tomra Systems ASA (BM)................................... 10,000 60 ------ 760 Philippines - 0.1% Ayala Land, Inc. * (JS) ................................. 410,460 45 Metro Bank & Trust (JP) ................................. 65,450 32 Philippine Long Distance Telephone Co. * (J1) ........... 3,200 56 SM Prime Holdings, Inc. (JS) ............................ 48,000 6 ------ 139 Portugal - 0.3% Banco Comercial Portgues SA (JP) ........................ 62,300 139 BPI-SGPS SA (JQ) ........................................ 33,590 123 Part Multimedia SGPS (JA) ............................... 4,439 $ 86 Sonae SGPS SA (BL) ...................................... 87,600 73 ------ 421 Singapore - 0.7% Chartered SemiconductorManufacturing (J0) ............... 12,000 12 City Developments, Ltd. (JS) ............................ 15,000 53 Cycle & Carriage, Ltd. (JE) ............................. 8,766 30 DBS Group Holdings, Ltd. * (JP) ......................... 17,000 147 Haw Par Value Corp. , Ltd. (BL) ......................... 26,876 71 Neptune Orient Lines, Ltd. (BR) ......................... 14,000 18 Oversea-Chinese Banking Corp., Ltd. (JP) ................ 39,000 278 Singapore Telecommunications, Ltd. * (J1) ............... 101,000 116 United Overseas Bank, Ltd. * (JP) ....................... 42,448 330 ------ 1,055 South Africa - 1.4% Anglo American Platinum Corp., Ltd. * (BF) .............. 1,200 52 Anglo American plc * (BF) ............................... 30,000 641 Anglogold * (BF) ........................................ 3,100 145 Barlow, Ltd. * (BL) ..................................... 7,400 78 Dimension Data Holdings plc (JU) ........................ 79,483 53 FirstRand, Ltd. (JP) .................................... 94,300 126 Foschini, Ltd. (JE) ..................................... 37,100 109 Gold Fields Mining * (BF) ............................... 9,600 137 Impala Platinum Holdings, Ltd. (BF) ..................... 1,000 87 Imperial Holdings, Ltd. (JE) ............................ 10,091 101 Investec Ltd. (JQ) ...................................... 3,051 58 Liberty Life Association of Africa, Ltd. (JR) ........... 10,300 83 M-Cell, Ltd. (J2) ....................................... 8,400 36 Nampak, Ltd. (BE) ....................................... 25,500 50 Nedcor, Ltd. * (JP) ..................................... 4,300 40 Sappi, Ltd. * (BG) ...................................... 5,700 78 Sasol, Ltd. * (BB) ...................................... 11,800 168 South African Breweries plc (JG) ........................ 6,000 61 Standard Bank Investment Corp., Ltd. (JP) ............... 18,000 105 ------ 2,208 South Korea - 1.5% Hyundai Motor Co., Ltd. (BV) ............................ 3,560 151 KIA Motors Corp. (BV) ................................... 3,310 30 Kookmin Bank * (JP) ..................................... 6,399 240 Korea Electric Power Corp. * (J3) ....................... 7,430 133 Korea Telecom Corp. (J1) ................................ 1,040 39 Korea Telecom Freetel (J1) .............................. 2,980 48 LG Chemical (BC) ........................................ 2,035 94 LG Electronics, Inc. (JY) ............................... 1,931 95 SCHEDULE OF INVESTMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Market Name of Issuer Shares Value -------------- ------ ------- (000's) COMMON STOCK - Continued South Korea - Continued LG Investment & Securities Co., Ltd. * (JQ) ........... 2,460 $ 17 Pohang Iron & Steel Co., Ltd. (BF) .................... 1,323 181 Samsung Corp. (JY) .................................... 6,120 51 Samsung Display Devices Co. (JY) ...................... 1,000 118 Samsung Electro-Mechanics Co. (JY) .................... 1,460 48 Samsung Electronics * (JY) ............................ 2,159 817 Samsung Fire & Marine Insurance (JR) .................. 942 54 Samsung Securities Co., Ltd. (JQ) ..................... 2,470 53 Shinhan Financial (JP) ................................ 6,930 111 SK Telecom Co., Ltd. * (J2) ........................... 820 137 ------ 2,417 Spain - 3.3% Acerinox SA (A5) ...................................... 1,752 82 ACS, Actividades de Construccion y Servicios, SA (BJ) ................................. 4,229 206 Amadeus Global Travel - Ser. A (BO) ................... 5,240 34 Autopistas Concesionaria Espanola SA (BT) ............. 6,287 95 Banco Bilbao Vizcaya SA * (JP) ........................ 49,959 689 Banco Popular Espanol SA (JP) ......................... 3,070 183 Banco Santander Central Hispano SA * (JP) ............. 71,715 848 Endesa SA * (J3) ...................................... 15,465 297 Fomento de Construcciones y Contratas SA (BJ) ......... 1,400 52 Gas Natural SDG SA * (J4) ............................. 6,400 150 Grupo Ferrovial SA * (BJ) ............................. 2,312 81 Iberdrola SA (J3) ..................................... 13,874 274 Inditex (JE) .......................................... 6,292 128 Indra Sistemas SA (JU) ................................ 6,236 80 NH Hoteles SA * (BZ) .................................. 7,422 85 Repsol SA * (BB) ...................................... 17,332 338 Tabacalera SA - Cl. A (JI) ............................ 6,360 180 Telefonica SA * (J1) .................................. 82,822 1,215 Union Electrica Fenosa SA (J3) ........................ 4,900 92 Vallehermoso SA (JS) .................................. 4,915 74 ------ 5,183 Sweden - 1.7% Drott AB (JS) ......................................... 5,400 103 Electrolux AB - Ser. B * (BW) ......................... 4,900 108 Hennes & Mauritz AB * (JE) ............................ 14,223 338 NetCom Systems, Inc. - Cl. B (J1) ..................... 1,732 92 Nordic Baltic Holding AB (JP) ......................... 59,137 444 Sandvik AB (BM) ....................................... 4,350 150 Securitas AB * (BO) ................................... 11,000 148 Skand Enskilda Banken - Cl. A (JP) .................... 10,200 150 Skandia Forsakrings AB (JR) ........................... 13,900 51 Skanska AB - Ser. B (BJ) .............................. 11,000 97 Svenska Cellulosa AB - Cl. B (BG) ..................... 3,100 127 Svenska Handelsbanken, Inc. (JP) ...................... 9,300 190 Telefonaktiebolaget LM Ericsson AB (JW) ............... 246,500 $ 442 Telia AB (J1) ......................................... 30,044 157 Volvo AB * (BM) ....................................... 5,750 176 ------ 2,773 Switzerland - 6.1% ABB, Ltd. (BK) ........................................ 21,138 107 Adecco SA * (BO) ...................................... 2,733 176 Ciba Specialty Chemicals AG * (BC) .................... 1,667 129 Credit Suisse Group * (JP) ............................ 21,266 778 Givaudan (BC) ......................................... 224 116 Holcim * (BD) ......................................... 3,096 144 Lonza Group AG (BC) ................................... 1,604 92 Nestle SA * (JH) ...................................... 6,988 1,745 Novartis AG (JO) ...................................... 41,256 1,872 Richemont (JQ) ........................................ 10,552 253 Roche Holdings AG (JO) ................................ 746 103 Roche Holdings AG * (JO) .............................. 11,960 1,206 Serono SA (JN) ........................................ 156 111 SGS Holdings (BO) ..................................... 119 75 Swatch Group (BY) ..................................... 1,021 123 Swiss Reinsurance Co. * (JR) .......................... 5,579 377 Swisscom AG * (J1) .................................... 541 178 Syngenta AG (BC) ...................................... 2,037 137 Synthes-Stratec, Inc. (JL) ............................ 109 108 UBS AG * (JP) ......................................... 20,534 1,406 Valora Holding AG (JE) ................................ 321 80 Zurich Finance (JR) ................................... 2,571 370 ------ 9,686 Taiwan - 1.0% Acer Communicaton (J1) ................................ 22,800 28 Acer, Inc. * (JX) ..................................... 44,963 67 Advanced Semiconductor Engineering, Inc. (J0) ......... 64,900 67 Arima Computer (JX) ................................... 49,500 18 Asustek Computer * (JX) ............................... 20,250 45 AU Optronics Corp. * (JY) ............................. 55,650 65 China Dev Fin Holding (JP) ............................ 144,203 71 China Trust Finance (JP) .............................. 79,920 80 CMC Magnetics Corp. (JX) .............................. 51,600 40 Compal Electronics, Inc. * (JX) ....................... 44,160 60 Formosa Chemical & Fibre (BC) ......................... 32,054 54 Formosa Plastic * (BC) ................................ 52,956 87 Hon Hai Precision Insustry Co., Ltd. - Cl. G * (JY) ............................................... 20,700 81 Kinpo Electronics (JZ) ................................ 69,608 40 Lite on Technology (JX) ............................... 48,056 51 Macronix International Co., Ltd. (JX) ................. 59,400 13 Micro Star International (JX) ......................... 9,176 14 Nan Ya Plastic Corp. (BC) ............................. 83,824 121 Quanta Computer, Inc. (JX) ............................ 16,445 40 Realtek Semiconductor Corp. * (J0) .................... 10,920 19 SCHEDULE OF INVESTMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Market Name of Issuer Shares Value -------------- ---------- -------- (000's) COMMON STOCK - Continued Taiwan - Continued Ritek Corp. (JX) .................................. 45,000 $ 28 Siliconware Precision (J0) ........................ 44,000 45 Taiwan Semiconductor * (J0) ....................... 173,880 325 Tatung (BL) ....................................... 100,000 25 United Microelectronics Corp. * (J0) .............. 83,525 72 Via Technologies Inc. * (JX) ...................... 14,090 18 Winbond Electronic (JY) ........................... 69,000 33 ------ 1,607 Thailand - 0.3% Advanced Information Services (J2) ................ 65,700 140 PTT Exploration & Production Public Co., Ltd. (BB) ................................. 22,200 150 Siam Cement Co. * (BD) ............................ 31,600 220 ------ 510 Turkey - 0.2% Arcelik AS (BW) ................................... 6,490,550 36 Turkiye Is Bankasi - Cl. C * (JP) ................. 70,216,241 285 ------ 321 United Kingdom - 21.7% 3I Group (JQ) ..................................... 11,775 130 Alliance Unichem (JM) ............................. 7,717 71 Amvescap plc * (JQ) ............................... 13,224 96 Association British Ports (BT) .................... 11,901 95 AstraZeneca Group plc * (JO) ...................... 30,224 1,446 Barclays (JP) ..................................... 110,773 985 BG Group plc * (BB) ............................... 64,498 330 Billiton plc (BF) ................................. 44,847 391 BOC Group plc * (BC) .............................. 17,596 268 Boots Group (JF) .................................. 15,100 186 BP Amoco plc (BB) ................................. 410,567 3,320 BPB (BD) .......................................... 12,089 75 Brambles Industries * (BO) ........................ 22,730 83 British Aerospace plc (BH) ........................ 57,462 173 British Airport Authority plc (BT) ................ 21,926 194 British American Tobacco plc * (JI) ............... 29,280 402 British Land Co. plc (JS) ......................... 9,000 94 British Sky Broadcast plc (JA) .................... 23,449 294 BT GROUP (J1) ..................................... 153,664 516 Bunzl (BO) ........................................ 12,430 95 Cable & Wireless plc * (J1) ....................... 48,728 116 Cadbury Schweppes plc * (JH) ...................... 37,586 275 Capita Group plc (FB) ............................. 17,669 77 Carlton Communications plc * (JA) ................. 13,900 57 Carnival plc (BZ) ................................. 3,303 133 Centrica plc (J4) ................................. 76,232 287 CGU plc (JR) ...................................... 37,687 330 Compass Group plc * (BZ) .......................... 39,189 266 Daily Mail & General Trust (JA) ................... 7,508 88 Davis Service (BO) ................................ 11,677 78 Diageo plc * (JG) ................................. 53,890 707 Dixons Group plc (JE) ............................. 42,741 106 Electrocomponents plc * (JY) ...................... 12,098 $ 70 EMAP plc * (JA) ................................... 6,164 94 EMI Group plc (JA) ................................ 9,000 26 Enterprise Inns (BZ) .............................. 5,116 93 Exel * (BP) ....................................... 7,462 98 Firstgroup (BS) ................................... 12,870 63 GKN * (BU) ........................................ 17,633 84 GlaxoSmithKline plc * (JO) ........................ 104,018 2,377 Granada Compass plc * (JA) ........................ 57,831 126 Hammerson plc (JS) ................................ 8,028 93 Hanson Building Materials * (BI) .................. 8,990 66 Hays plc * (BO) ................................... 41,349 89 HBOS * (JP) ....................................... 65,987 852 Hilton Group plc * (BZ) ........................... 27,700 111 HSBC Holdings plc (JP) ............................ 182,550 2,861 IMI (BM) .......................................... 11,248 68 Imperial Chemical Industries plc * (BC) ............................................ 26,199 93 Imperial Tobacco Group plc (JI) ................... 13,917 273 Intercontinental Hampshire (JQ) ................... 15,693 148 J Sainsbury plc * (JF) ............................ 28,966 162 Johnson Matthey (BC) .............................. 5,434 95 Kelda Group plc (JH) .............................. 10,845 91 Kingfisher * (JE) ................................. 42,693 212 Land Securities SGP (JQ) .......................... 7,350 130 Legal & General Group plc (JR) .................... 105,588 189 Liberty National (JS) ............................. 6,968 85 Lloyds TSB Group plc (JP) ......................... 118,179 945 Logica plc * (JU) ................................. 16,105 74 Manitoba Group (JQ) ............................... 5,609 146 Marks & Spencer * (JD) ............................ 42,777 221 Misys plc (JV) .................................... 13,522 51 Mitchells & Butler (BZ) ........................... 5,981 24 National Grid Group * (JY) ........................ 53,002 379 National Power plc (J3) ........................... 14,200 31 Next Group (JD) ................................... 6,142 123 Nycomed Amersham plc (JL) ......................... 14,138 193 Pearson plc * (JA) ................................ 15,605 173 Peninsular & Oriental Steam Navigation Co. (BR) ............................ 18,718 77 Provident Financial (JQ) .......................... 6,656 77 Prudential Corp. (JR) ............................. 34,647 292 Rank Group plc * (BZ) ............................. 25,300 126 Reckitt Benckiser * (JJ) .......................... 11,385 257 Reed International plc (JA) ....................... 44,446 371 Rentokil Initial plc (BO) ......................... 39,081 133 Reuters Group plc * (JA) .......................... 29,157 122 Rexam (BE) ........................................ 11,775 90 Rio Tinto plc * (BF) .............................. 18,738 516 RMC Group plc * (BD) .............................. 6,457 80 Rolls Royce Group * (BH) .......................... 30,599 97 Royal & Sun Alliance Insurance Group * (JR) ......................................... 60,060 95 Royal Bank of Scotland Group * (JP) ............... 48,532 1,426 SCHEDULE OF INVESTMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Market Name of Issuer Shares Value -------------- ---------- -------- (000's) COMMON STOCK - Continued United Kingdom - Continued Safeway plc (JF) .................................. 23,118 $ 117 Scottish & Newcastle (JG) ......................... 18,779 127 Scottish and Southern Energy (J3) ................. 16,614 200 Scottish Power plc * (J3) ......................... 34,695 231 Severn Trent (J6) ................................. 8,253 110 Shell Transport & Trading Co. plc * (BB) ........................................... 189,806 1,408 Signet Group (JE) ................................. 42,561 78 Slough Estates Finance plc (JS) ................... 8,000 63 Smith & Nephew (JL) ............................... 19,151 160 Smiths Group (BL) ................................. 11,076 131 South African Breweries plc * (JG) ................ 15,790 163 Tate & Lyle (JH) .................................. 12,545 70 Taylor Woodrow (BW) ............................... 17,488 83 Tesco plc * (JF) .................................. 127,371 586 The Great Universal Stores plc (JC) ............... 19,002 262 The Sage Group plc (JV) ........................... 15,700 49 Tomkins plc (BL) .................................. 18,702 89 Unilever plc * (JK) ............................... 49,648 462 United Business Media (JA) ........................ 8,630 75 United Utilities plc * (J5) ....................... 10,400 92 Vodafone AirTouch plc (J2) ........................ 1,203,067 2,974 Whitbread * (BZ) .................................. 7,465 96 Wolseley (BN) ..................................... 11,481 162 WPP Group plc * (JA) .............................. 22,552 221 -------- 34,541 United States - 2.6% Bajaj Auto, Ltd. - GDR (BV) ....................... 5,900 143 Banco Bradesco - ADR (JP) ......................... 2,918 77 Banco Itau SA - ADR * (JP) ........................ 3,960 197 Banco Santander Chile - ADR (JP) .................. 2,900 69 Brasil Telecom Participacoes SA (J1) . ............ 2,426 91 Carnival Corp. (BZ) ............................... 180 7 Centrais Electricas Brasileirias SA - ADR Cl. B * (J3) ............................... 12,874 101 Check Point Software Technologies, Ltd. * (JT) .................................... 4,200 71 Companhia De Bebidas ADR (JG) ..................... 6,850 175 Companhia Energetica de Minas Gerias - ADR (J3) ..................................... 7,701 141 Companhia Vale do Rio Doce - ADR (BF) ........................................... 3,700 189 Compania Cervecerias Unidas SA - ADR * (JG) ..................................... 900 19 Compania de Telecomunicaciones de Chile SA * (J1) ................................ 2,500 37 EIH, Ltd. - GDR (BZ) .............................. 6,700 44 Embotelladora Andina SA - ADR * (JG) ........................................... 6,100 64 Empresa Nacional de Electricidad SA - ADR * (J3) ..................................... 10,100 118 Enersis SA - ADR * (J3) ........................... 28,447 209 Grasim Industries, Ltd. - GDR (BL) ................ 7,100 156 Great Eastern Shipping Co. - GDR (BL) ........................................... 9,020 $ 152 Hindalco Industries, Ltd. - GDR (BF) .............. 4,900 151 Huaneng Power International, Inc. - ADR * (J3) ..................................... 400 28 ITC, Ltd. - GDR (JI) .............................. 5,900 130 Lukoil Holding - ADR * (BB) ....................... 2,700 251 Mahindra & Mahindra, Ltd. * (BL) .................. 16,500 141 Petroleo Brasileiro SA * (BB) ..................... 5,500 160 Petroleo Brasileiro SA - ADR (BB) ................. 6,800 180 Ranbaxy Laboratories, Ltd. - GDR (JO) ............. 6,560 167 Reliance Industries, Ltd. - GDR (BC) .............. 11,000 276 Surgutneftegaz - ADR (BB) ......................... 11,581 337 Tatneft - ADR (BB) ................................ 2,400 55 Unified Energy Systems Russia - ADR (J3) ........................................... 6,700 187 -------- 4,123 -------- TOTAL COMMON STOCK- ......................... 97.0% 154,282 PREFERRED STOCK Australia - 0.2% News Corp., Ltd. (JA) ............................. 434 404 Germany - 0.2% Henkel KGAA (BC) .................................. 68 87 Porsche AG (BV) ................................... 90 116 Volkswagen AG (BV) ................................ 88 89 -------- 292 South Korea - 0.1% Samsung Electronics (JY) .......................... 79 113 -------- TOTAL PREFERRED STOCK- ...................... 0.5% 809 WARRANTS Mexico - 0.0% Cemex SA (BI) expires 12/21/04 (Cost $1) ........................ 2,000 1 -------- TOTAL WARRANTS- ............................. 0.0% 1 RIGHTS Germany - 0.0% Muenchener Ruckversag (BO) expires 11/10/03 (Cost $0) ........................ 4,360 38 Thailand - 0.0% TelecomAsia (J1) expires 04/30/08 (Cost $0) ........................ 35,747 0 -------- TOTAL RIGHTS- ............................... 0.0% 38 SCHEDULE OF INVESTMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND Market Name of Issuer Shares Value -------------- --------- --------- (000's) INVESTMENT COMPANIES HELD AS COLLATERAL ON LOANED SECURITIES - 5.4% State Street Navigator Securities Lending Portfolio .............................. $ 8,571 $ 8,571 SHORT-TERM INVESTMENTS Investment in joint trading account (Note B) - 1.9% 1.061% due 01/02/04 ............................ 2,955 2,955 U.S. Treasury - Bills - 0.3% 0.99% due 03/11/04 ............................. 524 524 -------- TOTAL SHORT-TERM INVESTMENTS- ................................ 2.2% 3,479 ------- -------- TOTAL INVESTMENTS- .......................... (105.1)% 167,180 Payables, less cash and receivables- .............. (5.1)% (8,144) ------- -------- NET ASSETS- ....................................... 100.0% $159,036 ======= ======== * Non-income producing security. ADR-American Depository Receipt. GDR-Global Depository Receipt. See notes to financial statements. SUMMARY OF LONG-TERM SECURITIES BY INDUSTRY (UNAUDITED) % of Industry Market Long-Term Industry Abbreviation Value Investments -------- ------------ ---------- ----------- (000's) Banks ............................ JP $ 26,607 17.2% Oil & Gas ........................ BB 14,366 9.3% Pharmaceuticals .................. JO 10,740 6.9% Insurance ........................ JR 6,449 4.2% Diversified Telecommunication Services ...................... J1 5,982 3.9% Metals & Mining .................. BF 5,959 3.8% Electronic Equipment & Instruments ................... JY 5,406 3.5% Chemicals ........................ BC 5,057 3.3% Wireless Telecommunications Services ...................... J2 4,904 3.2% Diversified Financials ........... JQ 4,767 3.1% Electric Utilities ............... J3 4,657 3.0% Automobiles ...................... BV 4,628 3.0% Media ............................ JA 3,668 2.4% Food Products .................... JH 3,404 2.2% Industrial Conglomerates ......... BL 2,834 1.8% Food & Drug Retailing ............ JF 2,797 1.8% Communications Equipment ......... JW 2,742 1.8% Beverages ........................ JG 2,557 1.6% Real Estate Investment Trust ..... JS 2,380 1.5% Hotels Restaurants & Leisure ..... BZ 2,077 1.3% Commercial Services & Supplies ...................... BO 1,843 1.2% Semiconductor Equipment & Products ...................... J0 1,810 1.2% Household Durables ............... BW $ 1,795 1.2% Road & Rail ...................... BS 1,631 1.0% Machinery ........................ BM 1,625 1.0% Multiline Retail ................. JD 1,430 0.9% Construction Materials ........... BD 1,327 0.9% Specialty Retail ................. JE 1,326 0.9% Health Care Equipment & Supplies ...................... JL 1,288 0.8% Electrical Equipment ............. BK 1,168 0.8% Tobacco .......................... JI 1,139 0.7% Personal Products ................ JK 1,126 0.7% Computers & Peripherals .......... JX 1,095 0.7% Paper & Forest Products .......... BG 1,043 0.7% Gas Utilities .................... J4 1,003 0.6% Software ......................... JV 1,002 0.6% Auto Components .................. BU 953 0.6% Office Electronics ............... JZ 902 0.6% Textiles & Apparel ............... BY 893 0.6% Construction & Engineering ....... BJ 825 0.5% Marine ........................... BR 765 0.5% Multi-Utilities .................. J5 739 0.5% Building Products ................ BI 717 0.5% Aerospace & Defense .............. BH 690 0.4% IT Consulting & Services ......... JU 606 0.4% Air Freight & Couriers ........... BP 518 0.3% Leisure Equipment & Products ..... BX 513 0.3% Transportation Infrastructure .... BT 487 0.3% Household Products ............... JJ 460 0.3% Trading Companies & Distributors .................. BN 387 0.2% Real Estate Operations ........... JS 336 0.2% Internet & Catalog Retail ........ JC 262 0.2% Airlines ......................... BQ 245 0.2% Health Care Providers & Services ...................... JM 225 0.1% Real Estate Development .......... JS 191 0.1% Internet Software & Services ..... JT 190 0.1% Containers & Packaging ........... BE 139 0.1% Biotechnology .................... JN 111 0.1% Water Utilities .................. J6 110 0.1% Finance .......................... FB 97 0.1% Distributors ..................... JB 80 0.0% Energy Equipment & Services ...... BA 57 0.0% -------- ----- $155,130 100.0% ======== ===== NOTES TO FINANCIAL STATEMENTS JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- (000's Omitted) NOTE A--ORGANIZATION John Hancock International Equity Index Fund (the "Fund") is a diversified series of John Hancock Variable Series Trust I (the "Trust"), an open-end investment management company registered under the Investment Company Act of 1940. The Trust is organized as a Massachusetts business trust and consists of thirty different funds as of December 31, 2003. The results of this Fund are included in this report. The results of the other Funds in the Trust are presented under separate cover. The Trust may add or delete Funds in the future to accommodate various investment objectives. The Trust has issued shares of beneficial interest exclusively to John Hancock Variable Life Account U ("JHVLAU"), John Hancock Variable Life Account V ("JHVLAV"), John Hancock Variable Life Account S ("JHVLAS"), and John Hancock Variable Annuity Account I ("JHVAAI") to fund policies and contracts issued by the John Hancock Variable Life Insurance Company ("JHVLICO"), and to John Hancock Variable Annuity Account U ("JHVAAU"), John Hancock Variable Annuity Account V ("JHVAAV"), John Hancock Variable Life Account UV ("JHVLAUV"), John Hancock Variable Annuity Account H ("JHVAAH"), and John Hancock Variable Annuity Account JF ("JHVAAJF") to fund contracts and policies issued by John Hancock Life Insurance Company ("John Hancock" or "JHLICO"), to John Hancock Variable Life Account PPM-1 ("PPM-1"), and to John Hancock Variable Life Account PPM-2 ("PPM-2"). NOTE B--ACCOUNTING POLICIES Valuation of investments: Investments in securities traded on national securities exchanges in the United States or on equivalent foreign exchanges are normally valued at the last quoted sales price on such exchanges as of the close of business on the date of which assets are valued. Securities traded in the over-the-counter market and securities traded with no sales on the day of valuation are normally valued at their last available bid price. All Fund securities initially expressed in terms of foreign currencies have been translated into U.S. Dollars as described in "Currency Translation" below. Short-term investments, with a maturity not to exceed 60 days, are valued at amortized cost, which approximates market value. Fair value pricing, determined in good faith by the Board of Trustees, may be used by the Fund when current market values are unavailable or when an event occurs after the close of the exchange on which the Fund's portfolio securities are principally traded that is likely to have changed the value of the securities. The use of fair value pricing by the Fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated using current market values. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities. Investment security transactions are recorded on the date of purchase or sale. Repurchase agreements: The Fund may enter into repurchase agreements which are contracts under which the Fund would acquire a security for a relatively short period (usually not more than 7 days) subject to the obligation of the seller to repurchase and the Fund to resell such security at a fixed time and price (representing the Fund's cost plus interest). The Fund will enter into repurchase agreements only with member banks of the Federal Reserve System and with "primary dealers" in United States Government Securities. The underlying securities, which represent the collateral of the agreement, must be marked to market daily to ensure that each repurchase agreement is fully collateralized at all times. The Fund will not invest more than 10% of its net assets in repurchase agreements maturing in more than 7 days. NOTES TO FINANCIAL STATEMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- (000's Omitted) NOTE B--ACCOUNTING POLICIES--Continued Joint trading account: Pursuant to an exemptive order issued by the Securities and Exchange Commission, the order permits the Fund to pool daily uninvested cash balances into a joint account for the purpose of investing the cash balances in short-term repurchase agreements, commercial paper and other short-term investments which in no event will have a maturity in excess of 7 days. Joint account holdings as of December 31, 2003 are as follows: Name of Issuer Market Value - -------------- ------------ Alpine Securitization Corp., 1.12%, due 01/07/04 $ 29,995 Alpine Securitization Corp., 1.12%, due 01/06/04 19,998 Barclays US Fund, 1.10%, due 01/05/04 29,997 Cargill Asia Pacific, 1.06%, due 01/02/04 20,000 Cargill Asia Pacific, 1.05%, due 01/02/04 25,000 Danske Corp., 1.07%, due 01/05/04 49,996 Greenwich CPL Holding Funding, 0.95%, due 01/02/04 $ 17,654 Merrill Lynch & Co., Inc., 1.04%, due 01/05/04 18,838 Merrill Lynch & Co., Inc., 1.05%, due 01/06/04 31,156 Mortgage Int. Networking, 0.98%, due 01/02/04 50,000 Three Pillars Funding Corp., 1.08%, due 01/06/04 49,994 UBS Finance LLC, 1.02%, due 01/02/04 3,917 UBS Finance LLC, 1.05%, due 01/02/04 4,088 UBS Finance LLC, 0.96%, due 01/02/04 35,000 -------- Joint Trading Account Totals $385,633 ======== Currency translation: All assets or liabilities initially expressed in terms of foreign currencies are translated into U.S. dollars based on London currency exchange quotations as of 5:00 p.m., London time, on the date of any determination of the net asset value of the Fund. Unrealized exchange adjustments are included in unrealized appreciation (depreciation) of investments. Transactions affecting statement of operations accounts and net realized gain (loss) on investments are translated at the rates prevailing at the dates of transactions. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses from investments. Reported net realized gains and losses on foreign currency transactions represent net gains and losses from sales and maturities of forward foreign currency contracts, disposition of foreign currencies, currency gains and losses realized between trade and settlement dates of security transactions, and the difference between the amounts of net investment income accrued and the U.S. dollar amount actually received. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in the exchange rate. Expenses: Expenses directly attributable to the Fund are charged to the Fund. Expenses not directly attributed to the Fund are allocated on the basis of relative net assets of the Fund. Securities lending: The Fund has entered into an agreement with State Street Bank and Trust Company ("SSBT") to lend its securities to certain qualified brokers who pay the Fund's negotiated lender fees. This loan is collateralized at all times with cash or securities with a market value at least equal to the market value of the securities on loan. Cash collateral is invested in a short-term instrument. As with other extensions of credit, the Fund may bear the risk of delay of the loaned securities in recovery or even loss of rights in the collateral should the borrower of the securities fail NOTES TO FINANCIAL STATEMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- (000's Omitted) NOTE B--ACCOUNTING POLICIES--Continued financially. At December 31, 2003, the market value of the securities loaned and the market value of the collateral for the Fund was as follows: Value of Securities Loaned Value of Collateral - -------------------------- ------------------- $8,172 $8,571 Financial futures contracts: The Fund may buy and sell financial futures contracts to hedge against the effects of fluctuations in interest rates and other market conditions. At the time the Fund enters into a financial futures contract, it will be required to deposit with its custodian a specified amount of cash or U.S. government securities, known as "initial margin". Each day, the futures contract is valued at the official settlement price of the Chicago Board of Trade or U.S. commodities exchange. Daily adjustments, called variation margin, arising from this "mark to market", are recorded by the Fund as unrealized gains or losses. When the contracts are closed, the Fund recognizes a gain or a loss. Risks of entering into futures contracts include the possibility that there may be an illiquid market and/or that a change in the value of the contract may not correlate with changes in the value of the underlying securities. In addition, the Fund could be prevented from opening or realizing the benefits of closing out futures positions because of position limits or limits on daily price fluctuations imposed by an exchange. At December 31, 2003, open financial futures contracts for the Fund were as follows: Open Expiration Unrealized Contracts Position Month Appreciation --------- -------- ---------- ------------ CAC 40 10 Euro Index Futures 10 Long March 04 $ 7 DAX Index Futures 3 Long March 04 14 Nikkei 225 Index Futures 13 Long March 04 29 FTSE 100 Index Futures 16 Long March 04 29 --- $79 === At December 31, 2003, the Fund had deposited $525 in segregated accounts to cover initial margin requirements on open financial futures contracts. Forward foreign currency contracts: The Fund may use forward foreign currency contracts to facilitate transactions in foreign securities and to manage the Fund's currency exposure. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell are used to hedge the Fund's investments against currency fluctuations. Neither type of forward foreign currency transaction will eliminate fluctuations in the prices of the Fund's securities or prevent loss if the price of such securities should decline. The U.S. dollar value of a forward foreign currency contract is determined using forward exchange rates supplied by a quotation service. Realized gain (loss) on the purchases and sales of forward foreign currency contracts is recognized on settlement date. NOTES TO FINANCIAL STATEMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- (000's Omitted) NOTE B--ACCOUNTING POLICIES--Continued As of December 31, 2003, the Fund had open forward foreign currency contracts which contractually obligate the Fund to deliver or receive currencies at a specified date, as follows: Unrealized Principal Amount Appreciation/ Covered by Contract Expiration Month (Depreciation) ------------------- ---------------- -------------- Currency Purchased Euro 907 March 04 $ 21 Pound Sterling 1,646 March 04 49 Japanese Yen 914 March 04 4 ---- $ 74 ==== Currency Sold Euro 115 March 04 $ (3) Pound Sterling 441 March 04 (8) Japanese Yen 248 March 04 $ (1) ---- $(12) ==== Federal income taxes: The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to shareholders. Therefore, no federal income tax provision is required. As of December 31, 2003, the Fund had approximate net tax basis capital loss carryforwards, which may be applied against any net taxable gains, as follows: $6,989, $7,680 and $7,444 which expire in 2009, 2010 and 2011, respectively. In addition, from the period November 1, 2003 through December 31, 2003, the Fund incurred no net realized capital losses. Dividends, Interest and Distributions: Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Dividend income for the Fund is shown net of foreign taxes withheld of $337. Realized gains and losses from security transactions are determined on the basis of identified cost. Dividends of net investment income will be declared and distributed monthly by the Fund. The Fund will distribute all of its net realized capital gains annually, at the end of its fiscal year. Estimates: The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTES TO FINANCIAL STATEMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- (000's Omitted) NOTE C--INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES On February 5, 2003, the Board of Trustees of the Trust renewed its Investment Advisory Agreement with John Hancock. For its services, John Hancock receives monthly compensation at the following rate on an annual basis of the Fund's net assets: Between $100 Million and Excess Over First $100 Million $200 Million $200 Million - ------------------ ---------------- ------------ 0.18% 0.15% 0.11% In the event that normal operating expenses of the Fund, exclusive of investment advisory fees, taxes, interest, brokerage commissions and extraordinary expenses, shall exceed 0.10% of the Fund's daily net asset value, John Hancock and JHVLICO will reimburse the Fund for such excess. Accordingly, for the year ended December 31, 2003, the reimbursements paid from John Hancock and JHVLICO were $188 to the Fund. John Hancock has entered into a Sub-Advisory Agreement with Independence Investment LLC, with respect to the Fund. Independence Investment LLC is an affiliate of John Hancock, and under its supervision, is responsible for the day-to-day investment management of the Fund. Signator Investors, Inc., a wholly owned subsidiary of John Hancock is the principal underwriter and transfer agent of the Trust. Certain officers and trustees of the Trust are officers and directors of JHVLICO, JHVLAU, JHVLAV, JHVLAS, JHVAAI, JHVLAUV, JHVAAV, JHVAAU, JHVAAH, JHVAAJF, PPM-1, and PPM-2, and some are also officers of John Hancock. Fees for independent trustees are paid by the Trust. NOTE D--INVESTMENT TRANSACTIONS Purchases and proceeds from sales and maturities of investments, excluding short-term securities and obligations of the U.S. government, for the Fund for the year ended December 31, 2003 were as follows: Purchases Sales and Maturities - --------- -------------------- $61,005 $44,067 The identified cost of investments owned by the Fund (including earned discount on corporate short-term notes, commercial paper and collateral for securities lending) and their respective gross unrealized appreciation and depreciation for Federal income tax purposes at December 31, 2003 were as follows: Identified Unrealized Unrealized Net Unrealized Cost Appreciation Depreciation Appreciation - ---------- ------------ ------------ -------------- $155,390 $23,775 $(11,984) $11,791 NOTES TO FINANCIAL STATEMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- (000's Omitted) NOTE D--INVESTMENT TRANSACTIONS--Continued Distribution of Income and Gains: Distributions of net investment income, if any, are made at least annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually. Earnings and profits distributed to shareholders on redemption of fund shares may be utilized by the Fund, to the extent permissible, as part of the Fund's dividends-paid deduction on its federal income tax returns. The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to investments in passive foreign investment companies and to certain securities sold at a loss. Additionally, as a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund. At December 31, 2003, the Fund's components of distributable earnings on a tax basis were as follows: Undistributed Undistributed Ordinary Net Long-Term Capital Loss Net Unrealized Income Capital Gain Carryforwards Appreciation - ------------- ------------- ------------- -------------- $-- $-- $22,113 $11,791 In addition, the tax character of distributions paid by the Fund are summarized as follows: Distributions from Distributions from Year Ordinary Income Long-Term Capital Gain Return of Capital - ---- ------------------ ---------------------- ----------------- 2003 $3,685 $-- $479 2002 2,052 -- -- NOTE E--BOARD OF TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) The Board of Trustees of the Trust is responsible for overall management of the Trust. The Board may exercise all powers of the Trust, except those powers which are conferred solely upon or reserved to the shareholders. The Trust's Statement of Additional Information (SAI) includes additional information about the Trustees and is available without charge, upon request, by calling toll-free at 1-800-576-2227. NOTES TO FINANCIAL STATEMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- NOTE E--BOARD OF TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED)--Continued The following table provides information about the members of the Board of Trustees and the officers of the Trust: Disinterested Trustees
Positions Held Principal Occupation(s) Name, Address and Age With Trust During Past Five Years - --------------------------------- ---------------------------- ----------------------------------- Elizabeth G. Cook (age 66) Trustee Expressive Arts Therapist, Dana- c/o John Hancock Variable Series Farber Cancer Institute; President, Trust I The Advertising Club of Greater John Hancock Place Boston Boston, Massachusetts 02117 Diane C. Kessler (age 57) Trustee Executive Director, Massachusetts c/o John Hancock Variable Series Council of Churches Trust I John Hancock Place Boston, 02117 Massachusetts Robert Verdonck (age 58) Trustee President and Chief c/o John Hancock Variable Series Executive Officer, East Boston Trust I Savings Bank John Hancock Place Boston, 02117 Massachusetts Hassell H. McClellan (age 58) Trustee Associate Professor and Graduate c/o John Hancock Variable Series Dean, The Graduate School of the Trust I Wallace G. Carroll School of John Hancock Place Management, Boston College Boston, Massachusetts 02117
Trustees Affiliated with the Trust and Officers of the Trust
Positions Held Principal Occupation(s) Name, Address and Age With Trust During Past Five Years - --------------------------------- ---------------------------- ----------------------------------- Michele G. Van Leer* (age 46) Chairman and Trustee Senior Vice President, Product John Hancock Place Management, John Hancock Life Boston, Massachusetts 02117 Insurance Company; Vice Chairman, President & Director, John Hancock Variable Life Insurance Company
NOTES TO FINANCIAL STATEMENTS--Continued JOHN HANCOCK VARIABLE SERIES TRUST I December 31, 2003 - -------------------------------------------------------------------------------- NOTE E--BOARD OF TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED)--Continued Trustee Affiliated with the Trust and Officers of the Trust--Continued
Positions Held Principal Occupation(s) Name, Address and Age With Trust During Past Five Years - --------------------------------- ---------------------------- ----------------------------------- Kathleen F. Driscoll* (age 47) Vice Chairman, President Senior Vice President, Signator John Hancock Place and Trustee Brokerage, John Hancock Life Boston, Massachusetts 02117 Insurance Company; Vice President Corporate Communications, John Hancock Life Insurance Company Jude A. Curtis (age 45) Compliance Officer Vice President and Chief Investment John Hancock Place Compliance Officer, John Hancock Boston, Massachusetts 02117 Life Insurance Company; formerly Second Vice President and Counsel, Office of Business Conduct; John Hancock Life Insurance Company; formerly a Partner at Hale and Dorr LLP (law firm) Janet Wang (age 35) Assistant Compliance Officer Compliance Specialist, John John Hancock Place Hancock Life Insurance Company Boston, Massachusetts 02117 Raymond F. Skiba (age 58) Treasurer Director of Fund Operations, John John Hancock Place Hancock Life Insurance Company Boston, Massachusetts 02117 Gladys C. Millan (age 57) Assistant Treasurer Manager of Fund Operations, John John Hancock Place Hancock Life Insurance Company Boston, Massachusetts 02117 Karen Q. Visconti (age 50) Secretary Director, Product & Market John Hancock Place Management, John Hancock Life Boston, Massachusetts 02117 Insurance Company Arnold R. Bergman (age 53) Assistant Secretary Senior Counsel, Law Department, John Hancock Place John Hancock Life Insurance Boston, Massachusetts 02117 company; formerly Vice President, General Counsel and Secretary, First Variable Life Insurance Company
*Trustee who is an "interested person" as defined in the 1940 Act, due to her position with John Hancock Life Insurance Company (or its affiliates), the ultimate controlling parent of the investment advisor. Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an indefinite term until his successor is duly elected and qualified or until he dies, retires, resigns, is removed or becomes disqualified. None of the Trustees is a director of other complexes except noted above. REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS To the Contractowners, Policyholders, and Board of Trustees of John Hancock Variable Series Trust I We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the International Equity Index Fund (a portfolio included in the series of John Hancock Variable Series Trust I {the "Trust"}) as of December 31, 2003, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. 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, 2003, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. 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 audits provide 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 the International Equity Index Fund of John Hancock Variable Series Trust I at December 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP Boston, Massachusetts February 6, 2004 EX-99.(17)(D) 14 dex9917d.txt ANNUAL REPORT OF MANUFACTURERS INVESTMENT TRUST MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT PRESIDENT'S MESSAGE January 31, 2004 Dear Fellow Investors: I am pleased to present the 2003 annual financial statements of the Manufacturers Investment Trust (the Trust), the mutual fund that is the underlying investment vehicle for your variable annuity, variable insurance product or retirement plan. The financial statements that follow reflect operations for the 12 months ended December 31, 2003. During this period, total net assets of the Trust increased by 40% from $18.8 billion to $26.2 billion. This year was a turning point for the US and global economies. Business spending strengthened significantly, the employment picture began looking positive, and during the third quarter GDP grew at an annual rate of 8.2%, the strongest in nearly 20 years. In addition, consumer spending remained strong, as did consumer confidence and the housing market. The S&P 500 Index marked its first positive calendar year since 1999, ending the year up +28.7%. The Russell Midcap and small-cap Russell 2000 Indices gained +40.1% and +47.3%, respectively, while the technology-heavy Nasdaq registered a +50.0% gain in 2003. During the same period, the Wilshire Real Estate Securities Index rose +37.1%. The overall US Bond Market posted a small gain; the first time in four years that bonds underperformed the stock market. Equity market gains in 2003 appear to bring to a close the current era of equity market bubbles, starting with the steep climb in the late 1990s and concluding with the recent collapse at the dawn of the new millennium. This volatility strengthens the value of our commitment to time-tested disciplines of diversification and buy-and-hold investing. The multi-manager platform that Manulife Financial offers was designed in particular to help you achieve diversification in your portfolio. To make diversification easier, Manulife offers Lifestyle portfolios, which are diversified, fund-of-fund portfolios that offer investment risk management strategies ranging from conservative to aggressive. Increasingly, our clients are turning to these portfolios to help them pursue an asset allocation mix appropriate for their risk tolerance. Along with the platform changes implemented in May, we rebalanced our five Lifestyle portfolios, further diversifying them with broader asset allocation and new asset classes such as TIPS (Treasury Inflation Protected Securities), Natural Resources and International Small Cap. Collectively, these restructurings are a reflection of our commitment to offer clients a "best in class" investment platform with the tools needed to implement appropriate asset allocation strategies. We urge you to review your financial program regularly with your financial consultant to ensure that it continues to be structured in the best way to help you meet your goals. It may be the right time to reevaluate your mix of portfolios to increase diversification among different asset classes. Thank you for choosing Manulife Financial. We look forward to continuing to earn your trust as we serve your retirement, insurance and investment needs. Sincerely, /s/ JAMES D. GALLAGHER President Manufacturers Investment Trust MANUFACTURERS INVESTMENT TRUST INDEX TO ANNUAL REPORT
Page ---- Portfolio Performance and Manager's Commentary.......................... iii Report of Independent Auditors.......................................... 1 Statements of Assets and Liabilities.................................... 2 Statements of Operations................................................ 20 Statements of Changes in Net Assets..................................... 38 Financial Highlights.................................................... 62 Portfolio of Investments: Science & Technology Trust.......................................... 97 Pacific Rim Emerging Markets Trust.................................. 98 Health Sciences Trust............................................... 100 Emerging Growth Trust .............................................. 102 Aggressive Growth Trust............................................. 103 Emerging Small Company Trust........................................ 107 Small Company Blend Trust........................................... 109 Dynamic Growth Trust................................................ 112 Mid Cap Stock Trust................................................. 113 Natural Resources Trust............................................. 115 All Cap Growth Trust................................................ 116 Strategic Opportunities Trust....................................... 118 Financial Services Trust............................................ 119 International Stock Trust........................................... 120 Overseas Trust...................................................... 121 International Small Cap Trust....................................... 123 International Value Trust........................................... 125 Quantitative Mid Cap Trust.......................................... 126 Mid Cap Core Trust.................................................. 127 Global Equity Trust................................................. 129 Strategic Growth Trust.............................................. 131 Capital Appreciation Trust.......................................... 132 Quantitative All Cap Trust.......................................... 133 All Cap Core Trust ................................................. 135 Large Cap Growth Trust.............................................. 137 Quantitative Equity Trust........................................... 140 Blue Chip Growth Trust.............................................. 141 U.S. Large Cap Trust (formerly, U.S. Large Cap Value Trust)......... 143 Strategic Value Trust (formerly, Capital Opportunities Trust)....... 146 Large Cap Value Trust............................................... 147 Utilities Trust..................................................... 148 Real Estate Securities Trust........................................ 150 Small Cap Opportunities Trust....................................... 151 Small Company Value Trust........................................... 153 Special Value Trust................................................. 155 Mid Cap Value Trust................................................. 157 Value Trust......................................................... 158 All Cap Value Trust................................................. 159
i MANUFACTURERS INVESTMENT TRUST INDEX TO ANNUAL REPORT, CONTINUED Equity Index Trust.................................................. 161 Fundamental Value Trust............................................. 167 Growth & Income Trust............................................... 168 Great Companies-America Trust....................................... 170 Equity-Income Trust................................................. 170 Income & Value Trust................................................ 172 Balanced Trust...................................................... 180 Global Allocation Trust (formerly, Tactical Allocation Trust)....... 182 High Yield Trust.................................................... 187 Strategic Bond Trust................................................ 193 Global Bond Trust................................................... 200 Diversified Bond Trust.............................................. 205 Investment Quality Bond Trust....................................... 210 Total Return Trust.................................................. 221 Real Return Bond Trust.............................................. 224 U.S. Government Securities Trust.................................... 226 Money Market Trust.................................................. 227 Small Cap Index Trust............................................... 228 International Index Trust........................................... 243 Mid Cap Index Trust................................................. 253 Total Stock Market Index Trust...................................... 257 500 Index Trust..................................................... 283 Lifestyle Aggressive 1000 Trust..................................... 289 Lifestyle Growth 820 Trust.......................................... 289 Lifestyle Balanced 640 Trust........................................ 290 Lifestyle Moderate 460 Trust........................................ 290 Lifestyle Conservative 280 Trust.................................... 291 Small-Mid Cap Trust................................................. 291 International Equity Select Trust................................... 292 High Grade Bond Trust............................................... 293 American Growth Trust............................................... 294 American International Trust........................................ 294 American Growth-Income Trust........................................ 294 American Blue Chip Income and Growth Trust.......................... 294 Notes to Financial Statements........................................... 295 Trustees and Officers Information....................................... 320
ii MANUFACTURERS INVESTMENT TRUST PORTFOLIO PERFORMANCE AND MANAGER'S COMMENTARY TRUST PERFORMANCE In the following pages we have set forth information regarding the performance of each Portfolio of the Manufacturers Investment Trust (the "Trust"), excluding the Money Market Trust. There are several ways to evaluate a Portfolio's historical performance. One can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. WITH RESPECT TO ALL PERFORMANCE INFORMATION PRESENTED, IT IS IMPORTANT TO UNDERSTAND THAT PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. RETURN AND PRINCIPAL FLUCTUATE, AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE TABLES The Performance Tables show two types of total return information: CUMULATIVE AND AVERAGE ANNUAL TOTAL RETURNS. A CUMULATIVE TOTAL RETURN is an expression of a Portfolio's total change in share value in percentage terms over a set period of time -- one, five and ten years (or since the Portfolio's inception if less than the applicable period). An AVERAGE ANNUAL TOTAL RETURN takes the Portfolio's cumulative total return for a time period greater than one year and shows what would have happened if the Portfolio had performed at a constant rate each year. THE TABLES SHOW ALL CUMULATIVE AND AVERAGE ANNUAL TOTAL RETURNS, NET OF FEES AND EXPENSES OF THE TRUST, BUT DO NOT REFLECT THE INSURANCE (SEPARATE ACCOUNT) EXPENSES (INCLUDING A POSSIBLE CONTINGENT DEFERRED SALES CHARGE) OF THE VARIABLE ANNUITY AND VARIABLE LIFE PRODUCTS THAT INVEST IN THE TRUST. IF THESE WERE INCLUDED, PERFORMANCE WOULD BE LOWER. GRAPH -- CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES The performance graph for each Portfolio shows the change in value of a $10,000 investment over the life or ten year period of each Portfolio, whichever is shorter. Each Portfolio's performance is compared with the performance of one or more broad-based securities indices as a "benchmark." All performance information includes the reinvestment of dividends and capital gain distributions, as well as the deduction of ongoing management fees and Portfolio operating expenses. The benchmarks used for comparison are unmanaged and include reinvestment of dividends and capital gains distributions, if any, but do not reflect any fees or expenses. Portfolios that invest in multiple asset classes are compared with a customized benchmark. This benchmark is comprised of a set percentage allocation from each of the asset classes in which the Portfolio invests. PORTFOLIO MANAGER'S COMMENTARY Finally, we have provided a commentary by each portfolio manager regarding each Portfolio's performance during the period ended December 31, 2003. The views expressed are those of the portfolio manager as of December 31, 2003, and are subject to change based on market and other conditions. Information about a Portfolio's holdings, asset allocation or country diversification is historical and is no indication of future portfolio composition, which will vary. Information provided in this report should not be considered a recommendation to purchase or sell securities. The Portfolios are not insured by the FDIC, are not a deposit or other obligation of, or guaranteed by banks and are not subject to investment risks including loss of principal amount invested. For a more detailed discussion of the risks associated with the Portfolios, see the Trust prospectus. "Standard & Poor's," "Standard & Poor's 500," "S&P 500," and "S&P MidCap 400 Index" are trademarks of The McGraw-Hill Companies, Inc. "Russell 1000," "Russell 2000," "Russell 3000," and "Russell Midcap" are trademarks of Frank Russell Company. "Wilshire 5000" is a trademark of Wilshire Associates. "Morgan Stanley European Australian Far East Free", "EAFE" and "MSCI" are trademarks of Morgan Stanley & Co. Incorporated." "Lehman Brothers" is a registered trademark of Lehman Brothers Inc. "Lipper" is a registered trademark of Reuters S.A. None of the Index Trusts are sponsored, endorsed, managed, advised, sold or promoted by any of these companies, and none of these companies make any representation regarding the advisability of investing in the Trust. iii SCIENCE & TECHNOLOGY TRUST
INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing at least POLICIES: 80% of the portfolio's net assets in the common stocks of companies expected to benefit from the development, advancement and use of science and technology. SUBADVISER: T. Rowe Price Associates, Inc. PORTFOLIO MANAGERS: Michael Sola INCEPTION DATE: January 1, 1997
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [SCIENCE & TECHNOLOGY TRUST PERFORMANCE GRAPH]
SCIENCE & TECHNOLOGY TRUST SERIES LIPPER SCIENCE & TECHNOLOGY AVG. I FUNDS CLASSIFICATION --------------------------------- -------------------------------- Dec. 1996 10000 10000 10744 10620 9896 9719 9344 9013 9704 9270 10840 10537 Jun. 1997 11040 10688 12336 12052 12168 12055 12616 12672 11680 11607 11632 11500 Dec. 1997 11071 11229 11242 11500 12607 12819 12827 13219 13436 13728 12323 12752 Jun. 1998 12981 13720 12339 13481 9575 10762 10787 12199 12063 13073 13510 14815 Dec. 1998 15867 17240 17882 19948 16069 18215 17873 20302 18004 20935 18233 20661 Jun. 1999 20674 23124 20649 22881 21797 24080 22333 24896 23749 27660 26654 32459 Dec. 1999 31652 40723 29971 39933 35711 51022 35719 48685 31386 42658 27633 37475 Jun. 2000 30622 43853 29238 41718 34697 48205 30540 43351 28213 38391 20553 28341 Dec. 2000 20872 27748 23485 30470 15996 21987 13041 18282 16967 21897 15991 20990 Jun. 2001 15227 20697 14194 18768 11919 16283 9070 12718 10638 14748 12310 17065 Dec. 2001 12262 17236 11899 16927 10399 14566 11345 15934 9816 13993 9357 13159 Jun. 2002 8201 11417 7359 10154 7283 9854 6078 8406 7244 9801 8343 11439 Dec. 2002 7264 9876 7206 9834 7349 9876 7330 9839 8076 10814 8821 12146 Jun. 2003 8840 12224 9222 12935 9814 13900 9566 13518 10417 14921 10636 14985 Dec. 2003 10924 15009
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception Lipper Science & Technology Avg. Funds Classification* 51.98% -2.73% 5.97% -12.94% 50.09% Science & Technology Trust Series I 50.39% -7.19% 1.27% -31.15% 9.24% Science & Technology Trust Series II+++ 50.46% -5.00% -9.44% Science & Technology Trust Series III*** 7.73%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Science & Technology Trust Series I returned +50.39%, underperforming the +51.98% return of the Lipper Science & Technology Average Funds Classification. ENVIRONMENT: Science and technology stocks rebounded from their lows and posted powerful returns in 2003. Equity gains were strong, as all major market indexes delivered returns of 25% or more -- the NASDAQ Composite Index's 50% gain led the way. The year ended on an upbeat note compared with an atmosphere of economic uncertainty, depressed business confidence, tight financial conditions and weak economic growth that prevailed during the early months of 2003. The fund benefited from strong stock selection among Software stocks. An overweight of the sector, which lagged the Index, detracted slightly from results. Solid stock selection among Hardware sector companies helped returns. In the E-commerce sector, relative performance was hurt when the portfolio eliminated one company in favor of another when the two companies announced they would merge. The absence of a leading e-commerce firm from the portfolio also hurt returns. Stock selection in the Components sector detracted. OUTLOOK: The more speculative stocks in our sectors of the market have been fully valued for some time, but we see opportunities among some of the more established technology companies with leadership positions in their industries. Corporate profits are strong, and we expect corporate spending on information technology and other areas to pick up in the months ahead. iv PACIFIC RIM EMERGING MARKETS TRUST
INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing, under & POLICIES: normal conditions, at least 80% of the portfolio's net assets in common stocks and equity-related securities of established, larger capitalization, non-U.S. companies in the Pacific Rim that have attractive long-term prospects for capital growth. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Samantha Ho and Seton Lor INCEPTION DATE: October 4, 1994
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [PACIFIC RIM EMERGING MARKETS TRUST PERFORMANCE GRAPH]
PACIFIC RIM EMERGING MSCI AC PACIFIC FREE MARKETS TRUST SERIES I MSCI PACIFIC INDEX INDEX ---------------------- ------------------ -------------------- Sept. 1994 10000 10000 10000 10140 10254 10264 9466 9684 9674 Dec. 1994 9473 9750 9727 8774 9136 9087 9189 8912 8903 9302 9597 9537 9403 10007 9924 9904 9609 9622 Jun. 1995 9748 9203 9240 10239 9868 9868 10056 9498 9488 10097 9588 9579 9978 9123 9138 10122 9573 9536 Dec. 1995 10548 10042 10005 11015 10061 10086 11064 9949 9963 11184 10256 10241 11563 10779 10759 11392 10313 10315 Jun. 1996 11289 10317 10301 10821 9844 9792 11140 9587 9568 11422 9901 9859 11260 9443 9375 11747 9701 9653 Dec. 1996 11582 9198 9179 11539 8426 8521 11699 8603 8671 11284 8289 8352 11093 8463 8507 11869 9292 9258 Jun. 1997 11964 9869 9818 12007 9634 9617 10179 8680 8569 10328 8648 8493 8564 7599 7394 8033 7182 6960 Dec. 1997 7630 6868 6623 7353 7241 6976 8067 7502 7283 7971 7090 6894 7747 6951 6721 6948 6480 6224 Jun. 1998 6458 6468 6166 6330 6357 6080 5627 5606 5334 5850 5589 5346 6767 6558 6299 7193 6860 6651 Dec. 1998 7278 7053 6850 7257 7105 6887 7150 6967 6741 7822 7847 7576 8783 8372 8185 8310 7875 7719 Jun. 1999 9128 8601 8543 9365 9257 9063 9462 9164 9007 9623 9588 9271 10140 9960 9635 11065 10456 10150 Dec. 1999 11854 11140 10797 11244 10604 10376 11113 10373 10057 11647 11094 10760 11010 10324 9974 10518 9725 9422 Jun. 2000 11163 10477 10074 10168 9481 9137 10628 9999 9520 9961 9473 8910 9348 8931 8352 9108 8622 8033 Dec. 2000 8966 8284 7707 9119 8259 7903 8747 7908 7540 8025 7536 7133 8618 8032 7540 8519 8003 7520 Jun. 2001 8124 7621 7197 7542 7126 6737 7377 6959 6603 6444 6233 5868 6686 6299 5975 7169 6481 6253 Dec. 2001 7301 6194 6109 7191 5850 5874 7377 6008 6030 7904 6338 6389 8056 6622 6632 8177 6970 6905 Jun. 2002 7748 6608 6548 7309 6163 6135 7155 6120 6083 6462 5820 5715 6429 5589 5560 6858 5793 5787 Dec. 2002 6385 5637 5589 6309 5480 5476 6166 5486 5431 5792 5324 5255 6001 5373 5333 6398 5638 5628 Jun. 2003 6827 5997 5998 7279 6202 6260 7928 6758 6786 8116 7133 7061 8710 7505 7480 8413 7331 7301 Dec. 2003 8986 7834 7629
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception MSCI Pacific Index* 38.98% 2.12% -2.60% 11.08% -21.66% MSCI AC Pacific Free Index+* 36.51% 2.18% -2.88% 11.38% -23.71% Pacific Rim Emerging Markets Trust Series I 40.37% 4.30% -1.15% 23.45% -10.14% Pacific Rim Emerging Markets Trust Series II+++ 40.17% 11.44% 23.28% Pacific Rim Emerging Markets Trust Series III*** 10.75%
+ The MSCI AC Pacific Free Index was added in 2003 to more accurately reflect the investment objective of the Pacific Rim Emerging Markets Trust. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Pacific Rim Emerging Markets Trust Series I returned +40.37%, outperforming the +36.51% return of the MSCI AC Pacific Free Index. ENVIRONMENT: Pacific Asian markets posted strong returns in 2003, reversing earlier losses undermined by the Iraqi war and the SARS outbreak. The regional index hit its low in April and subsequently rallied, supported by faster global economic growth and attractive valuations. Over the period, Japanese equities underperformed the region. Consumer Durable stocks underperformed the market following disappointing results from a Japanese consumer electronics firm. In Korea, the market underperformed the region as rising tension on the Korean peninsula weighed on sentiment during the first few months of the year. Technology stocks were also strong following better than expected third quarter results from a Japanese electronics company. In China, materials stocks rallied strongly after positive earnings from a couple of chemical companies. Auto stocks remained strong on the back of robust domestic sales. The overweight positions in China, Taiwan and Thailand versus the underweight exposure in Japan, added value against benchmark. The underweight exposure in Australia and the overweight position in Korea and Singapore subtracted value. OUTLOOK: We believe the macro economic environment remains positive for Asian equity markets. With an improving global economic outlook, there is room for further acceleration in growth in much of the region in 2004 supported by renewed domestic consumption and business investment. Although non-Japan Asia markets have performed strongly since the SARS outbreak, valuations are still moderate in absolute terms and inexpensive against its own history or relative to developed markets. v HEALTH SCIENCES TRUST
INVESTMENT OBJECTIVE & To achieve long-term capital appreciation by investing at POLICIES: least 80% of the portfolio's net assets in common stocks of companies engaged in the research, development, production or distribution of products or services related to healthcare, medicine or the life sciences (collectively, the "health sciences"). SUBADVISER: T. Rowe Price Associates, Inc. PORTFOLIO MANAGERS: Kris H. Jenner INCEPTION DATE: April 30, 2001
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [HEALTH SCIENCES TRUST PERFORMANCE GRAPH]
LIPPER HEALTH/BIOTECHNOLOGY AVG. HEALTH SCIENCES TRUST SERIES I FUNDS CLASSIFICATION ------------------------------ -------------------------------- Apr. 2001 10000 10000 10472 10432 Jun. 2001 10808 10527 10272 10157 10224 10000 Sep. 2001 9607 9394 10160 9879 10784 10462 Dec. 2001 10832 10397 10176 9676 9800 9363 Mar. 2002 10121 9587 9534 8887 9197 8505 Jun. 2002 8524 7736 8203 7488 8051 7372 Sep. 2002 7762 7045 8091 7305 8219 7518 Dec. 2002 7882 7189 7890 7173 7826 6991 Mar. 2003 8227 7272 8612 7695 9446 8387 Jun. 2003 9719 8620 10160 8883 9991 8744 Sep. 2003 9856 8782 9984 8884 10312 8902 Dec. 2003 10736 9274
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Lipper Health/Biotechnology Avg. Funds Classification* 28.99% -2.79% -7.26% Health Sciences Trust Series I 36.22% 2.69% 7.36% Health Sciences Trust Series II+++ 35.91% 1.95% 3.80% Health Sciences Trust Series III*** 5.93%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Health Sciences Trust Series I returned +36.22%, outperforming the +28.99% return of the Lipper Health/Biotechnology Average Funds Classification. ENVIRONMENT: Despite strong returns by health maintenance organizations and biotechnology and medical device companies, health care equities as a group underperformed the S&P 500 Index last year. The performance of many big pharmaceutical companies, which were hurt by disappointing current and forecasted earnings, was the primary reason for this shortfall. A three-year slide in U.S. stocks ended in mid-March. Stocks have rallied strongly since that time, and all major indices finished the year solidly in positive territory. The NASDAQ Composite Index's 50.0% return led the way. The S&P 500 Index and the Dow Jones Industrial Average delivered more moderate, but still impressive, gains of 28.7% and 28.2%, respectively. Small-cap stocks strongly outpaced large-caps. Stock selection among Pharmaceutical stocks, an underweight position relative to the benchmark at approximately 22% of portfolio assets, contributed strongly to relative returns. An overweight of a particular pharmaceutical firm aided performance. We also benefited by underweighting or avoiding several other major pharmaceutical companies. Biotechnology represents nearly 39% of portfolio assets -- well above the benchmark holding. Stock selection in this area yielded mixed results. Strong stock selection in the services sector, which represents about 23% of portfolio assets, helped returns. Among products and devices stocks, individual selection was positive but the portfolio's underweight of this strong sector detracted. OUTLOOK: We remain biased towards companies producing important drugs for unmet medical needs with strong management and solid balance sheets. Over the long term, we believe that health care remains an area of tremendous growth. vi EMERGING GROWTH TRUST
INVESTMENT OBJECTIVE & To achieve superior long-term rates of return through POLICIES: capital appreciation. The portfolio seeks to achieve its objective by investing, under normal circumstances, primarily in equity securities of small-cap U.S. companies. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Niall Brown, Robert Lutzko & Luciano Orengo INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [EMERGING GROWTH TRUST PERFORMANCE GRAPH]
EMERGING GROWTH TRUST RUSSELL 2000 GROWTH INDEX --------------------- ------------------------- Apr. 2003 10000 10000 May 2003 10640 11127 Jun. 2003 10776 11342 Jul. 2003 11505 12199 Aug. 2003 12120 12854 Sep. 2003 11784 12529 Oct. 2003 12640 13612 Nov. 2003 13111 14055 Dec. 2003 13084 14117
PERFORMANCE TABLE**
Cumulative Total Return Since Periods Ended December 31, 2003 Inception Russell 2000 Growth Index* 41.17% Emerging Growth Trust Series I 30.84% Emerging Growth Trust Series II 30.68% Emerging Growth Trust Series III*** 4.77%
* All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the period since its inception on May 5, 2003, the Emerging Growth Trust Series I returned +30.84%, underperforming the +41.17% return of the Russell 2000 Growth Index and the 39.12% return of the Morningstar Small Growth Peer Group. ENVIRONMENT: This proved to be an excellent year for the small cap space, and in particular for the small cap growth space, which led all style boxes in 2003. On the heels of losses in the prior three years, a deeply oversold market with a reasonable valuation, diminishing geopolitical risks, and an improving economy combined to produce one of the best years ever for small cap investors, and the best year since 1991. In this year of recovery, the more cyclical sectors outperformed the less cyclical sectors in general. The top three performing sectors in 2003 were Telecommunication Services +90.8%, Information Technology +68%, and Health Care +44.5%. While the three worst performing sectors were Energy +30.6%, Consumer Staples +31.2% and Utilities +32.8%. This year was a difficult period for small cap portfolio managers to outperform. With the benchmark Russell 2000 Growth Index up 48.54% any cash holdings severely penalized managers. A 5% cash weight held throughout the year would have hurt performance by a full 2.42%. An allocation to cash detracted from the Trust's performance. Stock selection also carried an impact. In 2003 the best performing stocks were ones that were: losing money, were most over valued, had a stock price under $5, and a market cap under $250M at the years start. In general these are companies, which we best describe as low quality. The Trust was penalized by not owning enough of these low quality companies. OUTLOOK: The environment for the small cap growth space remains strong as the US economy continues to lead the developed world in growth. Growth stocks tend to beat value stocks early in the recovery and in periods of US dollar weakness; we expect the group to continue to perform well. We remain focused on profitable small companies with reasonable valuations, a strategy that has worked over the longer term and one that we expect to work in this period of earnings recovery. The risk of profit taking, especially in the "high-flying" names continues to be present but we feel that our portfolio positioning in better quality names offers the fund a degree of protection. We continue to believe that the group as a whole will end 2004 at a higher level. vii AGGRESSIVE GROWTH TRUST
INVESTMENT OBJECTIVE To achieve long-term capital appreciation by investing & POLICIES: primarily in common stocks, convertible bonds, convertible preferred stocks and warrants of companies that the subadviser expects to achieve earnings growth over time at a rate in excess of 15% per year. Many of these companies are small and medium sized. SUBADVISER: A I M Capital Management, Inc. PORTFOLIO MANAGERS: Karl Farmer, Robert M. Kippes & Jay K. Rushkin INCEPTION DATE: January 1, 1997++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [AGGRESSIVE GROWTH TRUST PERFORMANCE GRAPH]
AGGRESSIVE GROWTH TRUST SERIES I RUSSELL 2000 GROWTH INDEX -------------------------------- ------------------------- Dec.1996 10000 10000 10128 10250 9296 9631 8488 8951 8504 8848 9384 10177 Jun.1997 9792 10523 10584 11062 10256 11394 10704 12303 10088 11564 9872 11288 Dec.1997 10000 11295 9600 11144 10432 12128 10920 12637 10976 12714 9944 11790 Jun.1998 10480 11911 9544 10916 7384 8396 7888 9248 8328 9730 9120 10485 Dec.1998 10432 11434 10640 11949 9584 10855 10008 11242 9559 12234 9640 12254 Jun.1999 10384 12900 10440 12501 10336 12034 10648 12266 11112 12580 12056 13909 Dec.1999 13872 16361 13608 16209 17960 19981 17465 17881 16336 16075 14873 14667 Jun.2000 16705 16562 15856 15142 18121 16735 17057 15903 16233 14612 13209 11958 Dec.2000 14288 12691 14368 13718 12169 11837 10864 10761 11984 12078 12056 12358 Jun.2001 12256 12696 11721 11613 10809 10887 9273 9131 9729 10009 10281 10845 Dec.2001 10576 11520 10344 11110 9984 10391 10624 11294 10441 11050 10049 10404 Jun.2002 9257 9521 8041 8058 7993 8054 7520 7472 7880 7851 8360 8629 Dec.2002 7936 8034 7721 7815 7528 7606 7641 7721 8113 8451 8697 9404 Jun.2003 8929 9585 9249 10310 9809 10863 9497 10589 10273 11504 10545 11879 Dec.2003 10624 11933
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since++ Since Periods Ended December 31, 2003 1 Year 5 Year Inception May 1, 1999 5 Year Inception Russell 2000 Growth Index* 48.54% 0.86% 2.56% -0.53% 4.37% 19.33% Aggressive Growth Trust Series I 33.87% 0.37% 0.87% 2.29% 1.84% 6.24% Aggressive Growth Trust Series II+++ 33.57% 1.40% 2.71% Aggressive Growth Trust Series III*** 6.58%
++ Current subadviser assignment became effective May 1, 1999. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Aggressive Growth Trust Series I returned +33.87%, underperforming the +48.54% return of the Russell 2000 Growth Index. ENVIRONMENT: In the first half of 2003, as the country focused on conflict in Iraq, the domestic equity markets managed slight gains, and the U.S. economy grew at a sluggish pace. By the second half of the year, however, economic growth gathered momentum and the equity markets experienced a broad-based rally. Economic growth accelerated from 1.4% in the first quarter to 8.2% by the third quarter. Economic growth is estimated at 4 to 5% for the fourth quarter and projected to be near 4.5% for 2004. For the first time in three years, the major equity indices posted gains: the Dow Jones Industrial Average was up 28.27%, the NASDAQ Composite Index rose 50.01%, and the S&P 500 Index gained 28.70%. Small-cap stocks outperformed large caps, and small-cap growth outperformed small-cap value. The primary detractors during the year were the Information Technology and Health Care sectors, largely due to stock selection. Within these sectors, portfolio holdings in semiconductor and semiconductor equipment stocks and health care providers and services detracted the most from performance versus the Russell 2000 Growth Index. The underweight position to biotechnology stocks within the Health Care sector detracted from relative performance. In general, while overall performance was positive, a lack of exposure to more volatile, lower quality stocks detracted from performance when compared to the benchmark. Although Information Technology detracted from performance on a relative basis, this sector had a positive impact on the portfolio's overall return. The Consumer Discretionary sector also helped performance due to an overweight position and stock selection. OUTLOOK: By the end of 2003, the economy had improved markedly, and as we look to 2004, it remains to be seen whether headlines of new corporate scandals, heightened terror alerts, and renewed fears of SARS and Mad Cow disease will erode last year's gains. Both the equity markets and the economy, however, are in a better position now compared to a year ago, which should bode well for growth in 2004. viii EMERGING SMALL COMPANY TRUST
INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing at least POLICIES: 80% of the portfolio's net assets in common stocks of companies that have market capitalizations which match the approximate range of capitalization of the Russell 2000 Growth Index at the time of purchase. SUBADVISER: Franklin(R) Templeton(R) PORTFOLIO MANAGERS: Edward B. Jamieson, Michael McCarthy and Aidan O'Connell INCEPTION DATE: January 1, 1997++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [EMERGING SMALL COMPANY TRUST PERFORMANCE GRAPH]
EMERGING SMALL COMPANY TRUST SERIES I RUSSELL 2000 GROWTH INDEX ---------------------------- ------------------------- Dec.1996 10000 10000 10186 10250 9731 9631 9133 8951 9079 8848 10127 10177 Jun.1997 10578 10523 11191 11062 11298 11394 12293 12303 11651 11564 11514 11288 Dec.1997 11823 11295 11303 11144 12386 12128 13077 12637 13103 12714 12223 11790 Jun.1998 12551 11911 11210 10916 9189 8396 9904 9248 10435 9730 10982 10485 Dec.1998 11722 11434 12081 11949 10910 10855 11732 11242 11434 12234 11334 12254 Jun.1999 12443 12900 12138 12501 12357 12034 12786 12266 14349 12580 16401 13909 Dec.1999 20341 16361 20176 16209 25594 19981 23846 17881 21490 16075 20138 14667 Jun.2000 23024 16562 22096 15142 25114 16735 24619 15903 22891 14612 17866 11958 Dec.2000 19467 12691 20273 13718 16365 11837 14370 10761 16555 12078 16428 12358 Jun.2001 16213 12696 15313 11613 14285 10887 12101 9131 13112 10009 14412 10845 Dec.2001 15138 11520 14534 11110 13877 10391 14882 11294 14051 11050 13575 10404 Jun.2002 12500 9521 10792 8058 10600 8054 9537 7472 10437 7851 11680 8629 Dec.2002 10717 8034 10438 7815 10282 7606 10183 7721 11124 8451 12169 9404 Jun.2003 12234 9585 12728 10310 13669 10863 13077 10589 14355 11504 14778 11879 Dec.2003 14975 11933
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since++ Since Periods Ended December 31, 2003 1 Year 5 Year Inception May 1, 1999 5 Year Inception Russell 2000 Growth Index* 48.54% 0.86% 2.56% -0.53% 4.37% 19.33% Emerging Small Company Trust Series I 39.73% 5.02% 5.94% 5.95% 27.75% 49.75% Emerging Small Company Trust Series II+++ 39.48% 1.21% 2.35% Emerging Small Company Trust Series III*** 7.60%
++ Current subadviser assignment became effective May 1, 1999. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Emerging Small Company Trust Series I returned +39.73%, underperforming the +48.54% return of the Russell 2000 Growth Index. ENVIRONMENT: The final quarter of 2003 capped a year of strong stock market performance. The widely followed Dow Jones Industrial Average, NASDAQ Composite Index and S&P 500 Index performed well above long-term averages. In the last three quarters of the year, small-cap stocks outperformed their larger-cap counterparts. In general, the markets reflected confidence that the economic recovery may be at hand. On an absolute basis, electronic technology stocks provided the greatest contribution to the portfolio's return during the year as its semiconductor and electronic production equipment holdings appreciated. Retail trade, technology services and health technology companies were also significant contributors to positive returns. Relative to the benchmark, the portfolio's overweight position in electronic technology, particularly in semiconductors and electronic production equipment, helped performance, as did stock selection within the Retail sector. Although the portfolio performed well on an absolute basis during the period, it underperformed the Index. This was primarily due to overweight positions in Industrial Services and Process Industries. An overweight position and stock selection in Producer Manufacturing also hurt relative performance, as did our stock selection within Health Services. OUTLOOK: We seek to invest in stocks that present the best trade-off among growth opportunity, business and financial risk, and valuation. We continue to search across all sectors for opportunities to invest in rapidly growing small cap companies, which tend to show higher growth momentum as the economy picks up. ix SMALL COMPANY BLEND TRUST
INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing at least & POLICIES: 80% of its net assets in equity and equity-related securities of companies with market capitalizations that approximately match the range of capitalization of the Russell 2000 Index ("small cap stocks") at the time of purchase. SUBADVISER: Capital Guardian Trust Company PORTFOLIO MANAGERS: Michael R. Ericksen, James S. Kang, Robert G. Kirby, Karen A. Miller, Kathryn M. Peters and Lawrence R. Solomon INCEPTION DATE: May 1, 1999
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [SMALL COMPANY BLEND TRUST PERFORMANCE GRAPH]
SMALL COMPANY BLEND TRUST SERIES I RUSSELL 2000 INDEX -------------------------------- ------------------ May1999 10024 10146 Jun.1999 10904 10605 10688 10314 10432 9932 Sep.1999 10456 9934 10696 9974 11536 10570 Dec.1999 12856 11767 12978 11578 15099 13489 Mar.2000 14437 12600 12966 11842 11981 11151 Jun.2000 13977 12124 13295 11733 14362 12628 Sep.2000 12909 12257 11825 11710 9583 10508 Dec.2000 10319 11411 11733 12006 9807 11218 Mar.2001 8986 10669 10145 11504 10476 11787 Jun.2001 10714 12193 10145 11534 9540 11161 Sep.2001 7942 9659 8640 10224 9412 11015 Dec.2001 10081 11695 9768 11573 9566 11256 Mar.2002 10576 12161 10374 12272 9887 11727 Jun.2002 9216 11145 7873 9462 7726 9438 Sep.2002 7054 8760 7257 9041 7983 9848 Dec.2002 7505 9299 7202 9041 6953 8768 Mar.2003 7018 8881 7753 9723 8554 10767 Jun.2003 8691 10962 9022 11648 9648 12181 Sep.2003 9252 11956 9942 12960 10209 13420 Dec.2003 10484 13694
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Russell 2000 Index* 47.25% 6.97% 36.94% Small Company Blend Trust Series I 39.71% 1.02% 4.84% Small Company Blend Trust Series II+++ 39.63% 3.38% 6.64%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Small Company Blend Trust Series I returned +39.71%, underperforming the +47.25% return of the Russell 2000 Index. ENVIRONMENT: The year was a tough one for active small-cap managers as highly volatile stocks with no earnings, very small market capitalizations and low returns on equity drove the performance of the Russell 2000 Index. Throughout the year, the portfolio was positioned for an economic recovery. Our overweight position in and stock selection within the Consumer Discretionary area -- industries such as retail, media, hotels, and restaurants -- generally detracted from results, although some Consumer Discretionary holdings had strong relative returns. Holdings in Other Cyclicals and Materials were also detractors. The portfolio's underweight position and stock selection in Health Care also hurt returns. On the positive side, our overweight position in semiconductor production equipment companies was helpful and we were able to take profits in several of these holdings. Despite being underweight Technology, stock selection proved fruitful as our technology holdings outperformed the broad sector. OUTLOOK: As of the end of 2003, small-caps have now outperformed large caps for five consecutive years. The duration of the cycle, the magnitude of small-cap outperformance, current valuations relative to large-caps and historical precedent argues against this type of small-cap outperformance relative to large-caps continuing for much longer. x DYNAMIC GROWTH TRUST INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing & POLICIES: primarily in equity securities of companies with significant capital appreciation potential, with an emphasis on medium size companies. SUBADVISER: Deutsche Asset Management PORTFOLIO MANAGERS: Bob Grandhi, Audrey M.T. Jones and Dorris R. Klug INCEPTION DATE: May 1, 2000+
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [DYNAMIC GROWTH TRUST PERFORMANCE GRAPH]
DYNAMIC GROWTH TRUST SERIES I RUSSELL MIDCAP GROWTH INDEX ----------------------------- --------------------------- Apr. 2000 10000 10000 8960 9271 Jun. 2000 9616 10255 9032 9606 10009 11054 9416 10514 8816 9794 6081 7666 Dec. 2000 6384 8069 7416 8530 5680 7054 4984 6045 5346 7052 4969 7019 Jun. 2001 4616 7023 4352 6549 3975 6075 3342 5070 3558 5603 3783 6207 Dec. 2001 3815 6443 3494 6234 3310 5881 3478 6329 3398 5994 3294 5816 Jun. 2002 3085 5174 2813 4671 2813 4655 2700 4284 2773 4617 2861 4978 Dec. 2002 2733 4678 2628 4632 2605 4592 2596 4677 2757 4996 2965 5476 Jun. 2003 3013 5555 3149 5753 3301 6070 3221 5952 3446 6432 3494 6604 Dec. 2003 3526 6675
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since+ Since+ Since Nov 25, Since Nov 25, Periods Ended December 31, 2003 1 Year Inception 2002 Inception 2002 Russell Midcap Growth Index* 42.71% -10.44% 31.10% -33.25% 34.09% Dynamic Growth Trust Series I 29.03% -24.73% 20.04% -64.74% 22.22% Dynamic Growth Trust Series II+++ 29.12% -0.12% 20.10% -0.23% 22.28%
+ Current subadviser assignment became effective November 25, 2002. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Dynamic Growth Trust Series I returned +29.03%, underperforming the +42.71% return of the Russell Midcap Growth Index. ENVIRONMENT: With recent economic data indicating a six month expansion in the manufacturing sector, the U.S. economy continuing to add jobs, and the fastest increase in the pace of consumer spending seen in the last 17 years, it would appear that the U.S. economy is on the path of recovery. However, factors such as OPEC's decision to reduce production in order to boost oil prices could have a moderating effect on future growth. The underweight to both the Technology and Health Care sector was a positive contributor to relative performance, while the overweight to Other Energy and Consumer Staples was a detracting factor. Stock selection was the primary driver of underperformance. The fund was hurt by picks in Consumer Discretionary and Technology, while selections in Health Care and Consumer Staples helped performance. OUTLOOK: With underlying economic and market factors supportive of the equity markets, investor focus should shift towards the more profitable, institutional quality mid cap companies (instead of the low quality, non-earner companies which were the primary drivers of Index performance) as they report superior earnings with attractive valuations. Mid-cap earnings growth is expected to come in ahead of large caps, making this the twelfth out of the last 13 reporting seasons in which mid-cap earnings have exceeded that of large caps and this should drive relative performance. xi MID CAP STOCK TRUST INVESTMENT OBJECTIVE & To achieve growth of capital by investing at least 80% of POLICIES: the portfolio's net assets in equity securities of mid-sized companies with significant capital appreciation potential. SUBADVISER: Wellington Management Company, LLP PORTFOLIO MANAGER: Michael Carmen INCEPTION DATE: May 1, 1999
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [MID CAP STOCK TRUST PERFORMANCE GRAPH]
MID CAP STOCK TRUST SERIES I RUSSELL MIDCAP GROWTH INDEX ---------------------------- --------------------------- May1999 10104 9871 Jun.1999 10544 10560 10320 10224 9536 10118 Sep.1999 9312 10032 9327 10807 9415 11927 Dec.1999 10080 13992 9680 13989 9880 16930 Mar.2000 10536 16947 9544 15301 8816 14186 Jun.2000 9719 15691 9839 14698 11206 16914 Sep.2000 11135 16087 10454 14987 8702 11730 Dec.2000 9680 12348 9928 13053 8648 10795 Mar.2001 7392 9250 8433 10792 8472 10742 Jun.2001 8688 10747 8488 10023 8152 9296 Sep.2001 7136 7759 7513 8575 8321 9498 Dec.2001 8616 9860 8560 9540 8120 8999 Mar.2002 8664 9686 8352 9173 8200 8899 Jun.2002 7456 7917 6817 7148 6656 7123 Sep.2002 6200 6557 6553 7065 7201 7618 Dec.2002 6672 7158 6680 7088 6592 7026 Mar.2003 6752 7157 7352 7644 7913 8379 Jun.2003 8113 8499 8161 8803 8505 9288 Sep.2003 8281 9107 9057 9841 9370 10105 Dec.2003 9496 10215
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Russell Midcap Growth Index* 42.71% 0.46% 2.15% Mid Cap Stock Trust Series I 42.33% -1.10% -5.04% Mid Cap Stock Trust Series II+++ 41.97% 5.69% 11.28% Mid Cap Stock Trust Series III*** 10.42%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Mid Cap Stock Trust Series I returned +42.33%, underperforming the +42.71% return of the Russell Midcap Growth Index. ENVIRONMENT: Equity markets capped off a strong 2003 with another quarter of double-digit gains. Economic data continued to improve as third quarter real gross domestic product (GDP) growth reached 8.2%, corporate earnings surged and the labor market stabilized. Small-and mid-cap stocks outperformed large-cap stocks, and value and growth stocks posted similar gains. All sectors within the Russell MidCap Growth Index ended the year with more than a 15% return. The best-performing sectors were Technology, Telecommunication and Materials, while the Energy, Consumer Staples and Industrials lagged. Stock selection in Health Care, Industrials and Consumer Discretionary sectors made the greatest contributions to performance. Conversely, our underweight exposure to Technology offset gains for the year. OUTLOOK: As we enter 2004, corporate profits are robust, borrowing costs remain attractive, and consumer spending is stable. The building blocks for reinvigorated corporate spending, rising employment and an expanding economy appear to be in place. While the strongest move in the equity markets is likely behind us, we are still early in the economic recovery. Inventories remain quite low so any acceleration in orders could set off an inventory cycle that would result in healthy economic growth for an extended period. Rising profit expectations should continue to support moderate returns in the equity markets. The biggest risk is if interest rates move dramatically higher and earnings growth fails to materialize. Relative to the benchmark, the portfolio is overweight in the Industrials and Telecommunication sectors and underweight in the Technology sector. xii NATURAL RESOURCES TRUST INVESTMENT OBJECTIVE & To achieve long-term total return. Under normal market POLICIES: conditions, the portfolio will invest at least 80% of its net assets in equity and equity-related securities of natural resource-related companies worldwide. Natural resource-related companies include companies that own or develop energy, metals, forest products and other natural resources, or supply goods and services to such companies. The portfolio seeks to invest in companies that are expected to benefit from rising demand for natural resources and natural resource-based products and services. SUBADVISER: Wellington Management Company, LLP PORTFOLIO MANAGERS: Karl E. Bandtel and James A. Bevilacqua INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [NATURAL RESOURCES TRUST PERFORMANCE GRAPH]
LIPPER NATURAL RESOURCES NATURAL RESOURCES TRUST AVG. FUNDS CLASSIFICATION COMBINED INDEX SERIES I ------------------------- -------------- ----------------------- Apr-03 10000 10000 10000 May-03 11121 10767 10688 Jun-03 11018 10983 10880 Jul-03 10740 11168 10880 Aug-03 11514 11819 11689 Sep-03 11298 11715 11649 Oct-03 11755 12388 12417 Nov-03 11972 12597 12921 Dec-03 13213 14207 14400
PERFORMANCE TABLE**
Periods Ended December 31, 2003 Cumulative Total Return Lipper Natural Resources Avg. Funds Classification* 32.13% Combined Index*+ 42.07% Natural Resources Trust Series I 44.00% Natural Resources Trust Series II 43.84% Natural Resources Trust Series III*** 22.28%
+ The Combined Index is comprised of 60% MSCI World Energy Index, 30% MSCI World Metals & Mining Index, and 10% MSCI World Paper & Forest Products Index. * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the period since its inception on May 5 through year-end 2003, the Natural Resources Trust Series I returned +44.00%, outperforming the +42.07% return of its Combined Index. ENVIRONMENT: In 2003, oil and gas prices combined (50/50) averaged just under $31 per barrel-of-oil-equivalent. This is the highest level ever, and roughly twice the average throughout the 1990s. Energy stocks responded positively to the bullish commodity prices, particularly in December. Base and precious metals commodity prices had a strong year, as well. Gold ended the year at $420 an ounce, up from less than $350 in early May. Metals equities followed suit with substantial rises. The paper industry continued to show comparative weakness until late in the year when signs of life emerged. The Portfolio's relative outperformance was due to stock selection among Oil & Gas and Metals & Mining securities. Stock selection in Paper and Forest Products detracted somewhat. OUTLOOK: We are always uncomfortable during periods when optimism is the prevailing mood toward the sectors in which we invest. Potential future returns generally become compressed during those rare periods. However, the current bullish outlook seems plausible. There is little excess capacity in most commodity sectors, inventories are not excessive, and additional supply is constrained either by geologic, political, or timeframe limitations. This is an environment conducive to robust commodity prices. The question is how long does it take for the powerful self- correcting forces to assert themselves? As yet, we are generally sticking with the investments that have served us well although, as always, we remain vigilant for opportunities to improve the portfolio's risk/reward potential. xiii ALL CAP GROWTH TRUST INVESTMENT OBJECTIVE & To achieve long-term capital appreciation by investing the POLICIES: portfolio's assets, under normal market conditions, principally in common stocks of companies that are likely to benefit from new or innovative products, services or processes, as well as those that have experienced above-average, long-term growth in earnings and have excellent prospects for future growth. SUBADVISER: A I M Capital Management, Inc. PORTFOLIO MANAGERS: Christian A. Costanzo, Robert Lloyd, Bryan A. Unterhalter & Kenneth A. Zschappel INCEPTION DATE: March 4, 1996++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [ALL CAP GROWTH TRUST PERFORMANCE GRAPH]
ALL CAP GROWTH TRUST SERIES I RUSSELL 3000 GROWTH INDEX COMBINED INDEX -------------------- ------------------------- -------------- Feb. 1996 10000.00 10000.00 10000.00 10312.00 10031.00 10079.00 10824.00 10346.00 10566.00 10976.00 10726.00 10781.00 Jun. 1996 10504.00 10663.00 10456.00 9368.00 9968.00 9644.00 9904.00 10272.00 10166.00 10456.00 10997.00 10812.00 10248.00 11010.00 10685.00 10864.00 11786.00 11315.00 Dec. 1996 10696.00 11598.00 11124.00 11232.00 12360.00 11616.00 10584.00 12214.00 11361.00 9984.00 11535.00 10719.00 10064.00 12223.00 10981.00 10848.00 13182.00 11965.00 Jun. 1997 11448.00 13703.00 12297.00 12520.00 14866.00 13474.00 12384.00 14119.00 13341.00 13264.00 14858.00 14017.00 12544.00 14273.00 13314.00 12576.00 14781.00 13454.00 Dec. 1997 12328.00 14932.00 13630.00 12320.00 15316.00 13385.00 13408.00 16486.00 14643.00 14288.00 17147.00 15257.00 14176.00 17372.00 15464.00 13720.00 16807.00 14829.00 Jun. 1998 14792.00 17760.00 15248.00 14536.00 17522.00 14596.00 11592.00 14776.00 11809.00 12408.00 15939.00 12702.00 13128.00 17186.00 13637.00 14080.00 18495.00 14556.00 Dec. 1998 15816.00 20163.00 16064.00 15672.00 21327.00 16546.00 14912.00 20280.00 15737.00 16224.00 21324.00 16614.00 16237.00 21480.00 17371.00 16192.00 20872.00 17147.00 Jun. 1999 17304.00 22306.00 18344.00 16771.00 21599.00 17761.00 16697.00 21866.00 17576.00 16818.00 21466.00 17427.00 18050.00 23012.00 18774.00 19622.00 24333.00 20719.00 Dec. 1999 22884.00 26983.00 22975.00 22488.00 25790.00 21959.00 25403.00 27402.00 23332.00 26066.00 28953.00 24652.00 24064.00 27465.00 23385.00 22601.00 26012.00 22148.00 Jun. 2000 24757.00 28074.00 23904.00 24479.00 26817.00 22834.00 27713.00 29270.00 24923.00 26192.00 26589.00 22640.00 24492.00 25268.00 21515.00 19794.00 21485.00 18294.00 Dec. 2000 20415.00 20933.00 17824.00 21364.00 22396.00 19070.00 18072.00 18645.00 15875.00 16046.00 16641.00 14169.00 17641.00 18741.00 15957.00 17461.00 18518.00 15767.00 Jun.2001 17145.00 18160.00 15463.00 16490.00 17630.00 15011.00 15056.00 16211.00 13803.00 13168.00 14526.00 12369.00 13917.00 15328.00 13052.00 15310.00 16788.00 14294.00 Dec.2001 15562.00 16825.00 14326.00 15299.00 16507.00 14056.00 14644.00 15796.00 13451.00 15530.00 16397.00 13962.00 14634.00 15126.00 12880.00 14349.00 14722.00 12536.00 Jun.2002 13346.00 13368.00 11383.00 12133.00 12543.00 10680.00 12090.00 12577.00 10710.00 11173.00 11297.00 9620.00 12165.00 12304.00 10477.00 12639.00 13006.00 11075.00 Dec.2002 11764.00 12108.00 10310.00 11448.00 11811.00 10057.00 11405.00 11740.00 9997.00 11553.00 11956.00 10181.00 12324.00 12855.00 10947.00 12925.00 13548.00 11537.00 Jun.2003 13095.00 13739.00 11699.00 13581.00 14130.00 12032.00 14087.00 14510.00 12355.00 13612.00 14338.00 12209.00 14583.00 15176.00 12922.00 14889.00 15359.00 13079.00 Dec.2003 15203.00 15858.00 13503.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since++ Since Periods Ended December 31, 2003 1 Year 5 Year Inception May 1, 1999 5 Year Inception Russell 3000 Growth Index* 30.97% -4.69% 6.06% -6.29% -21.35% 58.58% Combined Index*+ 30.97% -3.41% 3.91% -5.25% -15.95% 35.03% All Cap Growth Trust Series I 29.24% -0.79% 5.50% -1.40% -3.87% 52.03% All Cap Growth Trust Series II+++ 28.99% -0.43% -0.83% All Cap Growth Trust Series III*** 6.90%
+ The Combined Index is a blend of the Russell Mid Cap Growth Index since inception until November 30, 1999, and the performance of the Russell 3000 Growth Index from December 1, 1999 and thereafter. ++ Current subadviser assignment became effective May 1, 1999. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the All Cap Growth Trust Series I returned +29.24%, underperforming the +30.97% return of the Russell 3000 Growth Index. ENVIRONMENT: In the first half of 2003, as the country focused on conflict in Iraq, the domestic equity markets managed slight gains, and the U.S. economy grew at a sluggish pace. By the second half of the year, however, economic growth gathered momentum and the equity markets experienced a broad-based rally. Economic growth accelerated from 1.4% in the first quarter to 8.2% by the third quarter. Economic growth is estimated at 4 to 5% for the fourth quarter and projected to be near 4.5% for 2004. For the first time in three years, the major equity indices posted gains: the Dow Jones Industrial Average was up 28.27%, the NASDAQ Composite Index rose 50.01%, and the S&P 500 Index gained 28.67%. Small-cap stocks outperformed large caps, and small-cap growth outperformed small-cap value. Growth outperformed value among stocks of all sizes. The Industrial sector was the main detractor from relative performance, primarily due to stock selection. The Consumer Discretionary and Health Care sectors aided relative performance due to a combination of stock selection and sector weight. We held an overweight in the Consumer Discretionary sector and an underweight in Health Care throughout the year. During the year, we changed the portfolio's position between earnings momentum and core growth stocks to 60% earnings momentum/40% core growth, a reverse of the previous year's mix of roughly 60% core growth and 40% earnings momentum. OUTLOOK: By the end of 2003, the economy had improved markedly, and as we look to 2004, it remains to be seen whether headlines of new corporate scandals, heightened terror alerts, and renewed fears of SARS and Mad Cow disease will erode last year's gains. Both the equity markets and the economy, however, are in a better position now compared to a year ago, which should bode well for growth in 2004. xiv STRATEGIC OPPORTUNITIES TRUST INVESTMENT OBJECTIVE & To achieve growth of capital by investing the portfolio's POLICIES: assets primarily in common stocks of U.S. issuers or securities convertible into, or that carry the right to buy, common stocks. Although current income is a secondary objective, growth of income may accompany growth of capital. SUBADVISER: Fidelity(R) Management & Research Company PORTFOLIO MANAGER: Jason Weiner, CFA INCEPTION DATE: June 18, 1985++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [STRATEGIC OPPORTUNITIES TRUST PERFORMANCE GRAPH]
STRATEGIC OPPORTUNITIES TRUST SERIES I S&P 500 INDEX COMBINED INDEX ----------------------- ------------- -------------- Dec.1993 10000 10000 10000 10335 10276 10373 10056 10136 10295 9619 9704 9872 9744 9771 9994 9902 9784 9872 9658 9494 9424 9977 9820 9635 10384 10286 10116 10133 10035 9886 10365 10111 10232 9985 9665 9879 Dec.1994 10131 9791 9947 10394 9992 9872 10797 10509 10266 11117 10810 10659 11441 10973 11149 11892 11333 11566 12172 11714 12488 12577 12283 13486 12611 12471 13629 13140 12753 14046 13094 12468 13998 13670 13088 14346 Dec.1995 13923 13164 14203 14402 13441 14565 14540 13757 14907 14679 13956 15050 14895 14351 15577 15279 14568 16060 15342 14349 15758 14659 13461 14770 14970 14102 15313 15811 14799 16120 16245 14918 16271 17478 15826 17176 Dec.1996 17135 15665 17063 18199 16251 18074 18347 16226 17372 17583 15537 16286 18633 15923 16987 19777 17085 18246 20659 17644 18823 22300 19116 20196 21060 18908 19855 22213 19987 20782 21471 19210 19543 22465 19667 19912 Dec.1997 22852 20209 20347 23105 19828 20290 24772 21378 21909 26040 22392 22959 26302 22448 23095 25850 21754 22455 26900 22055 22729 26614 21003 21815 22766 17644 18010 24224 18786 18627 26195 20067 20295 27782 21017 21232 Dec.1998 29383 22249 22261 30612 22211 22204 29661 21472 21347 30847 22145 22021 32042 23781 24750 31286 23713 24828 33022 24549 26139 31991 23875 25178 31833 23257 24516 30960 22439 23919 32919 23502 24100 33589 24178 25542 Dec.1999 35567 26306 28438 33780 25435 27113 33141 27390 29489 36383 28959 30541 35288 27588 28571 34564 26857 27142 35416 27652 28176 34862 27341 27598 37028 29962 30288 35073 29535 28449 34925 29079 27933 32171 26462 24589 Dec.2000 32328 28476 26626 33475 28934 28009 30423 27173 25835 28496 25487 24012 30710 27667 26634 30916 27889 26135 30163 27375 26384 29867 26924 25438 27997 25334 23171 25736 23099 19172 26227 23636 20279 28239 25457 21939 Dec.2001 28486 25816 22564 28071 25492 21332 27529 24970 20993 28565 26065 22404 26833 24698 21261 26635 24412 20297 24738 22655 17280 22809 20854 15370 22959 20952 15084 20464 18751 13353 22265 20244 14174 23576 21435 15174 Dec.2002 22190 20175 13817 21608 19646 13638 21284 19352 13246 21491 19539 13032 23261 21149 14424 24487 22264 15477 24801 22549 15584 25237 22946 15781 25729 23393 16138 25457 23145 15781 26897 24455 16691 27134 24670 16709 Dec. 2003 28557 25964 17387
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since ++ Since Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year Dec 13, 1991 Inception 5 Year 10 Year Inception S&P 500 Index* 28.70% -0.57% 11.06% 11.60% -2.81% 185.57% Combined Index*++ 28.70% 3.14% 10.01% 11.78% 16.70% 159.64% Strategic Opportunities Trust Series I 25.84% -4.82% 5.69% 6.89% -21.89% 73.87% Strategic Opportunities Trust Series II+++ 25.61% -10.34% -19.02%
++ Current subadviser assignment became effective December 13, 1991. ++ The Combined Index represents the performance of the Russell Midcap Index from inception to April 30, 2001 and the Russell 3000 Index from May 1, 2001 through October 2002, and the performance of the S&P 500 Index thereafter. The Combined Index was prepared by the Advisor using Ibbotson Associates Software and Data. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Strategic Opportunities Trust Series I returned +25.84%, underperforming the +28.70% return of the S&P 500 Index. ENVIRONMENT: For the year 2003, U.S. stock markets rallied back to positive territory after finishing down for three consecutive years. The Technology sector moved from being the worst performer in 2002 to top billing in 2003 as investors rotated into higher-growth segments of the market. Small-cap and international stocks were top performers, while bond markets performed modestly, with the notable exception of high-yield bonds, which rallied sharply. In this environment, the Trust trailed the S&P 500 Index. The portfolio's underperformance versus the Index can be attributed to overweighting tobacco holdings early in the year. Additionally, stock selection within the Energy and Health Care sectors also dampened results. On the positive side, some good picks in Consumer Discretionary, Telecommunication Services and Technology added to the portfolio's performance. Several wireless and cellular tower holdings boosted returns within Telecommunications. xv FINANCIAL SERVICES TRUST INVESTMENT OBJECTIVE To achieve growth of capital by investing primarily in & POLICIES: common stock of financial services companies. During normal market conditions, at least 80% of the portfolio's net assets are invested in companies that are principally engaged in financial services. A company is "principally engaged" in financial services if it owns financial services-related assets constituting at least 50% of the value of its total assets, or if at least 50% of its revenues are derived from its provision of financial services. SUBADVISER: Davis Advisors PORTFOLIO MANAGERS: Christopher C. Davis and Kenneth C. Feinberg INCEPTION DATE: April 30, 2001
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [FINANCIAL SERVICES TRUST PERFORMANCE GRAPH]
LIPPER FINANCIAL SERVICES AVG. FINANCIAL SERVICES TRUST SERIES I FUNDS CLASSIFICATION --------------------------------- ------------------------------ Apr.2001 10000.00 10000.00 10328.00 10362.00 Jun.2001 10008.00 10419.00 9728.00 10309.00 9264.00 9896.00 Sep.2001 8472.00 9258.00 8432.00 9071.00 9024.00 9650.00 Dec.2001 9307.00 9907.00 8978.00 9804.00 8915.00 9760.00 Mar.2002 9307.00 10337.00 9187.00 10328.00 9163.00 10333.00 Jun.2002 8443.00 9873.00 7739.00 9114.00 7875.00 9286.00 Sep.2002 7146.00 8262.00 7514.00 8796.00 7979.00 9123.00 Dec.2002 7642.00 8742.00 7474.00 8586.00 7314.00 8351.00 Mar.2003 7226.00 8290.00 7923.00 9226.00 8516.00 9789.00 Jun.2003 8741.00 9842.00 8885.00 10239.00 8973.00 10239.00 Sep.2003 8997.00 10304.00 9518.00 11050.00 9671.00 11100.00 Dec.2003 10208.00 11570.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Lipper Financial Services Avg. Funds Classification* 32.35% 5.62% 15.70% Financial Services Trust Series I 33.58% 0.78% 2.08% Financial Services Trust Series II+++ 33.40% 5.48% 10.86% Financial Services Trust Series III*** 12.85%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Financial Services Trust Series I returned +33.58%, outperforming the +32.35% of the Lipper Financial Services Average Funds Classification. ENVIRONMENT: The Financial Services sector as a whole outperformed the S&P 500 Index. In addition, the specific financial services companies which the portfolio owned outperformed the majority of financial services companies in the Index. The portfolio also makes strategic investments in non-financial companies. These companies as a group were strong contributors to both relative and absolute performance. In the strong bull market, cash holdings were a drag on relative performance. The portfolio's short-term performance was also hurt by select large financial institutions, one of which we sold. OUTLOOK: We continue to believe that long-term demographics favor financial services companies. The portfolio's investment strategy is to perform extensive research to buy companies with expanding earnings at value prices and hold them for the long term. After a strong year such as we enjoyed in 2003, we caution investors not to be overly optimistic. We are strong supporters of long-term buy-and-hold investing. xvi INTERNATIONAL STOCK TRUST INVESTMENT OBJECTIVE Under normal market conditions, the International Stock & POLICIES: Trust invests at least 80% of its net assets in common stocks. The portfolio primarily invests in the countries that make up the MSCI EAFE Index. The MSCI EAFE Index tracks stocks in Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. At least 50% of the portfolio's assets will be invested in securities that are represented in the MSCI EAFE Index. However, the portfolio may invest up to 50% of its total assets in non-Index securities of companies located in the countries that make up the Index. SUBADVISER: Deutsche Asset Management PORTFOLIO MANAGERS: Claire Gray, Stuart Kirk, Marc Slendebroek and Alex Tedder INCEPTION DATE: January 1, 1997
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [INTERNATIONAL STOCK TRUST PERFORMANCE GRAPH]
INTERNATIONAL STOCK TRUST SERIES I MSCI EAFE INDEX ---------------------------------- --------------- Dec. 1996 10000 10000 9929 9652 10026 9813 Mar. 1997 10018 9850 10097 9905 10733 10552 Jun. 1997 11183 11136 11474 11319 10424 10476 Sept. 1997 11086 11065 10247 10217 10229 10115 Dec. 1997 10264 10206 10604 10675 11221 11363 Mar. 1998 11615 11715 11696 11810 11642 11756 Jun. 1998 11651 11847 11803 11970 10300 10490 Sept. 1998 10067 10171 10962 11234 11437 11812 Dec. 1998 11650 12281 11497 12248 11228 11959 Mar. 1999 11677 12461 12058 12968 11448 12303 Jun. 1999 11888 12785 12067 13169 12175 13220 Sept. 1999 12228 13356 12659 13860 13466 14345 Dec. 1999 15112 15633 14240 14642 14995 15039 Mar. 2000 15161 15625 14291 14806 13769 14448 Jun. 2000 14439 15016 13966 14390 14271 14518 Sept. 2000 13385 13814 12853 13490 12184 12987 Dec. 2000 12608 13451 12727 13444 11654 12437 Mar. 2001 10758 11614 11626 12428 11120 11999 Jun. 2001 10666 11513 10408 11305 10129 11021 Sept. 2001 9077 9907 9325 10161 9696 10535 Dec. 2001 9892 10599 9417 10037 9500 10107 Mar. 2002 9984 10659 9921 10736 9911 10882 Jun. 2002 9507 10453 8430 9422 8367 9403 Sept. 2002 7394 8395 7901 8847 8026 9250 Dec. 2002 7747 8939 7291 8566 7033 8370 Mar. 2003 6960 8212 7541 9027 7978 9582 Jun. 2003 8051 9818 8384 10058 8551 10302 Sep. 2003 8832 10622 9353 11284 9457 11537 Dec. 2003 10092 12441
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Since+ Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception Nov 25, 2002 MSCI EAFE Index* 39.17% 0.26% 3.17% 1.30% 24.41% 34.50% International Stock Trust Series I 30.27% -2.83% 0.13% -13.37% 0.92% 26.39% International Stock Trust Series II+++ 30.26% -0.72% -1.39% 26.04% International Stock Trust Series III*** 15.08%
+ Current subadviser assignment became effective November 25, 2002. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the International Stock Trust Series I returned +30.27%, underperforming the +39.17% return of the MSCI EAFE Index and the +33.15% return of the Morningstar Foreign Large Growth Peer Group. ENVIRONMENT: During 2003, the harsh bear market finally came to an end. International equities recorded stellar gains, in part flattered by strengthening currencies vs. the U.S. dollar. One of the most important features of equity market performance this year has been the outperformance of the low quality leveraged plays. During 2003 the more leveraged the company, the greater the rise in the share price. We continue to focus our investment efforts on companies with sustainable business models and quality franchises, "best business models", which we believe outperform over time. However, during 2003 these companies have not been the market leaders in a market that is driven by contracting credit spreads with little regard for risk. We believe that over time equity markets reward quality companies and as the market begins to become more focused on fundamentals this will play to our investment style. Another feature of 2003 has been the significant outperformance of small caps. Small cap stocks in Europe and Japan have outperformed the broader indices dramatically. As we retain a predominantly large cap focus, this has penalized our Fund. A Japanese bank was the greatest contributor to returns. The company issued improved results. The stock has turned the corner on a number of asset quality metrics. A European wireless communications company was also a positive contributor as the benefits of its restructuring have been coming. A leading European building products manufacturer was also a strong performer. A Japanese electronics firm was the largest detractor as the company announced very poor numbers within its electronics division, suggesting that the business has structural problems. A property and casualty insurance firm was another detractor. The stock fell when the company announced it would cut its dividend. OUTLOOK: As we look out to 2004, the U.S. continues to be the prime driver of global growth. We believe that inflationary pressures will begin to reappear and that global reflation will be of significant benefit to Asia including Japan. Current growth forecasts for the region are currently too low and will therefore surprise on the upside. Stocks also remain cheap in the region, but in many other areas valuations are relatively full. xvii OVERSEAS TRUST INVESTMENT OBJECTIVE To achieve growth of capital by investing at least 80% of & POLICIES: the portfolio's net assets in non-U.S. securities (primarily common stocks). SUBADVISER: Fidelity(R) Management & Research Company PORTFOLIO MANAGERS: Richard R. Mace Jr. INCEPTION DATE: January 9, 1995++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [OVERSEAS TRUST PERFORMANCE GRAPH]
OVERSEAS TRUST SERIES I MSCI EAFE INDEX ----------------------- --------------- Dec.1994 10000 10000 9820 9618 9620 9593 10060 10194 10390 10581 10190 10457 Jun.1995 10010 10276 10480 10918 10200 10505 10270 10713 10080 10428 10280 10721 Dec.1995 10698 11155 10810 11203 10790 11243 10984 11485 11187 11821 11177 11606 Jun.1996 11320 11675 11054 11336 11167 11363 11453 11668 11545 11551 11955 12013 Dec.1996 12047 11862 11791 11449 11883 11639 11976 11685 11983 11749 12485 12516 Jun.1997 12912 13209 13054 13426 12278 12426 12715 13124 11993 12119 11829 11998 Dec.1997 12037 12106 12387 12662 13196 13478 13786 13896 14015 14008 13809 13944 Jun.1998 13602 14053 13682 14199 11352 12442 10778 12064 12064 13325 12672 14011 Dec.1998 13006 14567 13225 14528 12834 14185 13558 14781 13949 15382 13190 14593 Jun.1999 13765 15165 14270 15620 14454 15681 14547 15843 15236 16440 16420 17015 Dec.1999 18274 18549 17115 17373 17999 17844 18240 18540 17072 17568 16461 17143 Jun.2002 17246 17817 16424 17074 16997 17226 16025 16390 15252 16007 14679 15410 Dec.2000 14853 15960 14966 15952 13806 14757 13132 13780 14088 14746 13677 14238 Jun.2001 13089 13661 12623 13414 12047 13077 10856 11755 11212 12056 11759 12501 Dec.2001 11720 12575 11118 11908 11337 11992 11925 12647 11890 12738 12138 12911 Jun.2002 11395 12402 10156 11179 10032 11156 8959 9961 9358 10497 9881 10975 Dec.2002 9207 10606 8835 10164 8601 9931 8243 9743 8939 10710 9672 11368 Jun.2003 10142 11649 10640 11934 11055 12224 11359 12602 12160 13389 12368 13689 Dec.2003 13243 14760
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since++ Since Periods Ended December 31, 2003 1 Year 5 Year Inception May 1, 1999 5 Year Inception MSCI EAFE Index* 39.17% 0.26% 4.42% -0.89% 1.30% 47.60% Overseas Trust Series I 43.83% 0.36% 3.18% -1.09% 1.82% 32.43% Overseas Trust Series II+++ 43.71% 8.54% 17.14% Overseas Trust Series III*** 16.14%
++ Current subadviser assignment became effective May 1, 1999. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Overseas Trust Series I returned +43.83%, outperforming the +39.17% return of the MSCI EAFE Index. ENVIRONMENT: During the past 12 months, most of the world's major stock markets posted increases, as many foreign economies rebounded and grew alongside the rally in the U.S. market. Encouraged by better-than-expected corporate earnings and a favorable interest rate environment, the world's equity markets were further boosted by the easing of global geopolitical tensions. In this environment, the Trust outpaced the MSCI EAFE Index. Financial holdings largely contributed to performance, mostly due to an overweighting in some of the outperforming Japanese brokers and European credit companies. Additional contributors included the portfolio's sizable overweighting in the robust Information Technology sector, with key semiconductor-related stocks leading the way, as well as an underweighted position in the more-defensive Utilities sector. Conversely, performance was hurt by disappointing stock selection in both the Consumer Staples and Industrials sectors. xviii INTERNATIONAL SMALL CAP TRUST INVESTMENT OBJECTIVE & To achieve long-term capital appreciation. Under normal POLICIES: market conditions, the portfolio will invest at least 80% of its net assets in securities issued by foreign companies which have total stock market capitalizations or annual revenues of $1.5 billion or less ($2 billion or less effective August 1, 2003) ("small company securities"). SUBADVISER: Templeton Investment Counsel, LLC PORTFOLIO MANAGERS: Tucker Scott & Cindy L. Sweeting INCEPTION DATE: March 4, 1996++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [INTERNATIONAL SMALL CAP TRUST PERFORMANCE GRAPH]
INTERNATIONAL SMALL MSCI WORLD EX U.S. CITIGROUP GLOBAL EX CAP TRUST SERIES I INDEX U.S.A. COMBINED INDEX ------------------- ------------------ ------------------- -------------- 10000.00 10000.00 10000.00 10000.00 Mar. 1996 10048.00 10214.00 10211.00 10214.00 10344.00 10519.00 10745.00 10519.00 10576.00 10342.00 10635.00 10342.00 Jun. 1996 10624.00 10389.00 10621.00 10389.00 10240.00 10087.00 10181.00 10087.00 10304.00 10128.00 10315.00 10128.00 10424.00 10405.00 10411.00 10405.00 10632.00 10339.00 10400.00 10339.00 10832.00 10767.00 10616.00 10767.00 Dec. 1996 10920.00 10621.00 10429.00 10621.00 11033.00 10292.00 10403.00 10292.00 11298.00 10451.00 10637.00 10451.00 11257.00 10464.00 10429.00 10464.00 10998.00 10531.00 10269.00 10531.00 11496.00 11228.00 10834.00 11228.00 Jun. 1997 11641.00 11830.00 11087.00 11830.00 11601.00 12050.00 10953.00 12050.00 11143.00 11165.00 10352.00 11165.00 11560.00 11794.00 10429.00 11794.00 11086.00 10907.00 9781.00 10907.00 11151.00 10788.00 9156.00 10788.00 Dec. 1997 11006.00 10893.00 8897.00 10893.00 11255.00 11360.00 9069.00 11360.00 11801.00 12102.00 9797.00 12102.00 12476.00 12503.00 10187.00 12503.00 12827.00 12603.00 10224.00 12603.00 13359.00 12540.00 10034.00 12540.00 Jun. 1998 13383.00 12610.00 9570.00 12610.00 13383.00 12695.00 9374.00 12695.00 11514.00 11076.00 7986.00 11076.00 10853.00 10763.00 7955.00 10763.00 11328.00 11887.00 8593.00 11887.00 11804.00 12492.00 8907.00 12492.00 Dec. 1998 12311.00 12974.00 9015.00 12974.00 12738.00 12980.00 8890.00 12980.00 12125.00 12656.00 8754.00 12656.00 12681.00 13188.00 9390.00 13188.00 13210.00 13756.00 10218.00 13756.00 12749.00 13064.00 10009.00 13064.00 Jun. 1999 13322.00 13578.00 10642.00 13578.00 13831.00 13972.00 10892.00 13972.00 13945.00 14015.00 11081.00 14015.00 14349.00 14170.00 10964.00 14170.00 15036.00 14720.00 10894.00 14720.00 18819.00 15238.00 11154.00 15238.00 Dec. 1999 22767.00 16642.00 11753.00 16642.00 23730.00 15634.00 11770.00 15634.00 30870.00 16080.00 12068.00 16080.00 26400.00 16743.00 12125.00 16743.00 21561.00 15878.00 11247.00 15878.00 19565.00 15496.00 11050.00 15496.00 Jun. 2000 20764.00 16170.00 11729.00 16170.00 19958.00 15555.00 11267.00 15555.00 21198.00 15761.00 11604.00 15761.00 20009.00 14948.00 11006.00 14948.00 18022.00 14543.00 10194.00 14543.00 15926.00 13961.00 9834.00 13961.00 Dec. 2000 16128.00 14453.00 10075.00 14453.00 15970.00 14480.00 10406.00 14480.00 14879.00 13334.00 10133.00 13334.00 13100.00 12436.00 9430.00 12436.00 13641.00 13309.00 9959.00 13309.00 13276.00 12881.00 10050.00 12881.00 Jun. 2001 12667.00 12361.00 9768.00 12361.00 11693.00 12145.00 9371.00 12145.00 11398.00 11823.00 9384.00 11823.00 9834.00 10633.00 8212.00 10633.00 10267.00 10893.00 8512.00 10893.00 11212.00 11322.00 8923.00 11322.00 Dec. 2001 11113.00 11395.00 9093.00 11395.00 11172.00 10817.00 9051.00 10817.00 10936.00 10883.00 9177.00 10883.00 11556.00 11467.00 9714.00 11467.00 11458.00 11542.00 9946.00 11542.00 11842.00 11703.00 10213.00 11703.00 Jun. 2002 11390.00 11231.00 9771.00 11231.00 10494.00 10116.00 9115.00 10116.00 10238.00 10103.00 9050.00 10103.00 9156.00 9034.00 8266.00 9034.00 9550.00 9509.00 8334.00 9509.00 9806.00 9948.00 8638.00 9948.00 Dec. 2002 9254.00 9628.00 8599.00 9628.00 9156.00 9262.00 8606.00 9262.00 9087.00 9080.00 8514.00 9080.00 8871.00 8912.00 8409.00 8912.00 9598.00 9778.00 9021.00 9777.00 10247.00 10393.00 9796.00 10617.00 Jun. 2003 10798.00 10651.00 10297.00 11159.00 11456.00 10898.00 10688.00 11583.00 12184.00 11181.00 11356.00 12307.00 12527.00 11519.00 11929.00 12929.00 13422.00 12241.00 12805.00 13878.00 13579.00 12520.00 12864.00 13942.00 Dec. 2003 14338.00 13690.00 13447.00 14837.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Since++ Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception May 1, 2003 MSCI World ex US Index* 40.01% 0.77% 3.89% 3.90% 34.80% 37.87% Citigroup Global ex US ****$2 billion Index++* 59.20% 8.71% 4.07% 51.85% 36.90% 51.75% Combined Index+* 54.10% 2.72% 5.17% 14.35% 48.37% 51.75% International Small Cap Trust Series I 54.73% 3.10% 4.71% 16.46% 43.38% 48.57% International Small Cap Trust Series II+++ 54.52% 13.76% 28.28% 48.37% International Small Cap Trust Series III*** 14.74%
+ The Combined Index was added to more accurately reflect the investment objective of the International Small Cap Trust. The Combined Index is a blend of the MSCI World ex US Index from inception through May 31, 2003 and the Citigroup Global ex US ****$2 billion Index from June 1, 2003 and thereafter. ++ The Citigroup Global ex US ****$2 billion Index was added to more accurately reflect the investment objective of the International Small Cap Trust. ++ Current subadviser assignment became effective May 5, 2003. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the International Small Cap Trust Series I returned 54.73%, underperforming the +59.20% return of the Citigroup Global ex US **** $2 billion Index and outperforming the +48.45% return of the Morningstar Foreign Small/Mid Value Peer Group. ENVIRONMENT: In late May 2003, the resolution of the war in Iraq coincided with the start of a global stock market rally that provided equity investors with the strongest yearly gains since 1986. The rally's main catalyst was an improving global economy, underpinned by years of expansionary policies, restructuring and consolidation. After outperforming larger-cap stocks in the second and third quarters, foreign small-caps performed in line with larger stocks during the fourth quarter. During the last year, the portfolio benefited from the strong performance of several stocks. Shares of a Hong Kong-based manufacturer of power tools appreciated substantially during the year. The portfolio also benefited from its holding of a Dutch-based specialist staffing company; the security performed very well during the year, thanks to healthier European labor markets. Finally, the portfolio was rewarded for holding a low-income homebuilder in Mexico. The security appreciated significantly as the market captured the company's compelling growth opportunities. Unfortunately, the portfolio was not immune to the markets' volatile nature. During the reporting period, there tended to be a sharp, negative share price reaction for companies that reported disappointing news. Examples included a Tokyo-based educational firm and a UK security services firm. OUTLOOK: We seek to invest in securities of small-capitalization companies located outside of the U.S., and continue to apply our long-term, bottom-up, value-oriented investment strategy in researching and identifying companies we believe are poised for future earnings and asset growth. **** Denotes less than xix INTERNATIONAL VALUE TRUST INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing POLICIES: primarily in equity securities of companies located outside the United States, including those in emerging markets. SUBADVISER: Templeton(R) Investments Counsel, Inc. PORTFOLIO MANAGERS: Antonio C. Docal, Tucker Scott & Cindy L. Sweeting INCEPTION DATE: May 1, 1999
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [INTERNATIONAL VALUE TRUST PERFORMANCE GRAPH]
INTERNATIONAL VALUE TRUST SERIES I MSCI EAFE INDEX ---------------------------------- --------------- Apr.1999 10000 10000 9504 9487 Jun.1999 9920 9859 9840 10155 9743 10194 Sep.1999 9519 10299 9447 10688 9623 11062 Dec.1999 10384 12055 9728 11291 9703 11597 Mar.2000 10143 12049 9704 11418 9752 11141 Jun.2000 10316 11579 10155 11096 10171 11195 Sep.2000 9632 10652 9302 10403 9229 10015 Dec.2000 9713 10373 9826 10369 9471 9592 Mar.2001 8730 8957 9375 9585 9317 9255 Jun.2001 9126 8880 8935 8719 8860 8500 Sep.2001 7740 7641 7989 7836 8553 8126 Dec.2001 8745 8173 8463 7739 8529 7794 Mar.2003 9068 8220 9048 8279 9257 8391 Jun.2002 8722 8060 7744 7265 7735 7251 Sep.2002 6666 6474 7210 6822 7694 7133 Dec.2002 7185 6893 6968 6606 6658 6454 Mar.2002 6491 6332 7301 6960 7799 7389 Jun.2003 8061 7571 8525 7756 8854 7944 Sep.2003 8938 8191 9580 8702 9748 8897 Dec.2003 10408 9593
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception MSCI EAFE Index* 39.17% -0.89% -4.07% International Value Trust Series I 44.86% 0.86% 4.08% International Value Trust Series II+++ 44.52% 10.56% 21.39% International Value Trust Series III*** 14.27%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the International Value Trust Series I returned +44.86%, outperforming the +39.17% return of the MSCI EAFE Index. ENVIRONMENT: In late May 2003, the resolution of the war in Iraq coincided with the start of a global stock market rally that provided equity investors with the strongest yearly gains since 1986. The rally's main catalyst was an improving global economy, underpinned by years of expansionary policies, restructuring and consolidation. During 2003, the portfolio benefited from the strong performance of several stocks, including a Denmark-based wind turbine manufacturer that appreciated during the year. A German post office company and the world's leading express and logistics provider rose significantly, benefiting from a comprehensive restructuring project. The portfolio was also rewarded for its holdings of a French insurer and asset manager, which gained as a result of accelerated premium growth, improving equity markets, and tight expense control. Unfortunately, the portfolio was not immune to the markets' volatile nature. During the reporting period, there tended to be a sharp, negative share price reaction for companies that reported disappointing news. Examples of such stocks in the portfolio included a French energy and transport firm, and a UK security services firm. xx QUANTITATIVE MID CAP TRUST INVESTMENT OBJECTIVE & To achieve long-term capital growth by investing at least POLICIES: 80% of the portfolio's net assets in U.S. mid cap stocks, convertible preferred stocks, convertible bonds and warrants. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGER: Rhonda Chang and Noman Ali INCEPTION DATE: April 30, 2001
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [QUANTATIVE MID CAP TRUST PERFORMANCE GRAPH]
QUANTITATIVE MID CAP TRUST SERIES I S&P MID CAP 400 INDEX --------------------------------- --------------------- Apr. 2001 10000.00 10000.00 9976.00 10233.00 Jun. 2001 9616.00 10192.00 9136.00 10040.00 8472.00 9712.00 Sep. 2001 7344.00 8504.00 7480.00 8880.00 7928.00 9540.00 Dec. 2001 8160.00 10033.00 8009.00 9981.00 7857.00 9993.00 Mar. 2002 8216.00 10708.00 8024.00 10657.00 7784.00 10477.00 Jun. 2002 7256.00 9710.00 6497.00 8769.00 6513.00 8813.00 Sep. 2002 6289.00 8103.00 6561.00 8454.00 6593.00 8943.00 Dec. 2002 6312.00 8577.00 6256.00 8327.00 6224.00 8128.00 Mar. 2003 6312.00 8197.00 6784.00 8792.00 7232.00 9521.00 Jun. 2003 7255.00 9641.00 7480.00 9984.00 7808.00 10437.00 Sep. 2003 7768.00 10277.00 8400.00 11054.00 8593.00 11439.00 Dec. 2003 8744.00 11631.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception S&P MidCap 400 Index* 35.61% 5.83% 16.31% Quantitative Mid Cap Trust Series I 38.53% -4.90% -12.56% Quantitative Mid Cap Trust Series II+++ 38.32% 4.40% 8.67% +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results.
PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Quantitative Mid Cap Trust Series I returned +38.53%, outperforming the +35.61% return of the S&P MidCap 400 Index. ENVIRONMENT: In 2003, Technology and Health Care were the best performing sectors in the S&P MidCap 400 Index, outperforming the Index by 38.3% and 19.8% respectively. While all sectors had positive returns for the year, Consumer Staples and Energy were the worst performers, underperforming the Index by 13.5% and 14.5% respectively, as investors avoided defensive sectors and the threat of Iraqi oil entering the market kept oil stocks in check. For the Trust, Financials and Energy were the leading contributors to outperformance. Most notably, shares in a leading mortgage bank almost doubled in price as interest rates continued to fuel mortgage refinancing while a U.S.-based oil & gas exploration company gained 75% in 2003 on increased production guidance. OUTLOOK: The outlook for the market is positive, although a second consecutive year of strong double-digit gains is less likely. Economic growth is projected to be about 4% in 2004 and earnings growth for S&P 400 Index companies may accelerate to 19% from 15% in 2003. Inflation remains muted despite high oil prices. Typically the market return has been 14% in such a favorable macro environment. However, our forecast is tempered by an expected Federal Reserve interest rate hike in May, and valuation levels that already reflect much of the good news. The Trust's growth focus and larger cap bias position it favorably for the year ahead. xxi MID CAP CORE TRUST INVESTMENT OBJECTIVE & To achieve long-term growth of capital. The portfolio seeks POLICIES: to achieve its objective by investing, normally, at least 80% of its assets in equity securities, including convertible securities, of mid-capitalization companies. SUBADVISER: A I M Capital Management PORTFOLIO MANAGER: Ronald S. Sloan, Paul Rasplicka INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [MID CAP CORE TRUST PERFORMANCE GRAPH]
MID CAP CORE TRUST SERIES I RUSSELL MIDCAP INDEX --------------------------- -------------------- Apr. 2003 10000 10000 May 2003 10616 10915 Jun. 2003 10744 11025 Jul. 2003 11056 11389 Aug. 2003 11456 11883 Sep. 2003 11177 11735 Oct. 2003 11665 12630 Nov. 2003 11858 12985 Dec. 2003 12256 13374
PERFORMANCE TABLE**
Cumulative Total Return Since Periods Ended December 31, 2003 Inception Russell Midcap Index* 33.74% Mid Cap Core Trust Series I 22.56% Mid Cap Core Trust Series II 22.40% Mid Cap Core Trust Series III*** 5.87%
* All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the period since its inception on May 5, 2003, the Mid Cap Core Trust Series I returned +22.56%, underperforming the 33.74% return of the Russell Midcap Index. ENVIRONMENT: Despite anxieties about the sustainability of the economic recovery and the stock market rally, the economy and stocks ended 2003 strongly. Third quarter economic growth reached 8.2%, the highest third quarter growth in nearly 20 years. A key manufacturing report surprised analysts positively, indicating that the U.S. manufacturing sector is in a sustainable upward trend, and the unemployment rate fell to 5.7% by year-end. All 10 of the S&P sectors were positive for the fourth quarter, as small capitalization stocks continued to outperform large, and the value style of investing outperformed growth. During the last six months, the portfolio had positive relative performance in the Information Technology and Industrial sectors. Relative performance excelled due to good stock selection in both sectors. An overweight position in the Industrials sector also contributed to relative performance, as well. Relative performance was helped in the Information Technology sector by the stock of a company that provides end-to-end networks for programmers and cable operators. A company that designs, makes and sells office systems, products and services was the largest contributor to relative performance in the Industrial sector. The largest detractor from relative performance was the Financials sector, primarily due to an underweight position. OUTLOOK: For 2004, we will continue to balance exposure to more defensive names with tactical investments in individual companies that are more leveraged to the economy. We have been careful to select economically sensitive companies that represent strong brands, are market leaders and are trading at very compelling valuations. xxii GLOBAL EQUITY TRUST INVESTMENT OBJECTIVE The portfolio seeks long-term capital appreciation by & POLICIES: investing, under normal market conditions, at least 80% of its net assets (plus any borrowings for investment purposes) in the equity securities of companies located anywhere in the world, including emerging markets. At least 65% of its total assets will be invested in issuers located in at least three different countries (including the U.S.). SUBADVISER: Franklin(R) Templeton(R) PORTFOLIO MANAGER: Jeffery A. Everett, Murdo Murchison & Lisa F. Myers INCEPTION DATE: March 18, 1988++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [GLOBAL EQUITY TRUST PERFORMANCE GRAPH]
GLOBAL EQUITY TRUST SERIES I MSCI WORLD INDEX ---------------------------- ---------------- Dec. 1993 10000.00 10000.00 10598.00 10661.00 10623.00 10525.00 10299.00 10073.00 10600.00 10386.00 10445.00 10415.00 10562.00 10388.00 10814.00 10587.00 11169.00 10908.00 10762.00 10623.00 10898.00 10927.00 10193.00 10455.00 Dec. 1994 10174.00 10558.00 9618.00 10402.00 9611.00 10555.00 9993.00 11066.00 10234.00 11454.00 10254.00 11554.00 10220.00 11553.00 10812.00 12133.00 10730.00 11865.00 10839.00 12213.00 10588.00 12023.00 10662.00 12443.00 Dec. 1995 10955.00 12809.00 11071.00 13043.00 11173.00 13125.00 11438.00 13345.00 11832.00 13662.00 11722.00 13676.00 11715.00 13748.00 11065.00 13264.00 11320.00 13419.00 11424.00 13947.00 11362.00 14047.00 12095.00 14837.00 Dec. 1996 12337.00 14602.00 12365.00 14780.00 12676.00 14953.00 12572.00 14659.00 12688.00 15141.00 13573.00 16078.00 14242.00 16883.00 14834.00 17663.00 14111.00 16484.00 14872.00 17382.00 14318.00 16470.00 14388.00 16764.00 Dec. 1997 14903.00 16971.00 14972.00 17447.00 16141.00 18630.00 17025.00 19419.00 17205.00 19612.00 17008.00 19369.00 16778.00 19831.00 16507.00 19802.00 13930.00 17164.00 14324.00 17471.00 15662.00 19053.00 16277.00 20189.00 Dec. 1998 16729.00 21179.00 16573.00 21646.00 15777.00 21073.00 16072.00 21953.00 17101.00 22822.00 16843.00 21991.00 17350.00 23020.00 17526.00 22954.00 17369.00 22916.00 16649.00 22697.00 16760.00 23880.00 17000.00 24555.00 Dec. 1999 17341.00 26546.00 16584.00 25028.00 16132.00 25099.00 17332.00 26837.00 17150.00 25705.00 17613.00 25058.00 18044.00 25905.00 17813.00 25179.00 18160.00 26001.00 17666.00 24622.00 18245.00 24212.00 18287.00 22745.00 Dec. 2000 19455.00 23116.00 19360.00 23565.00 18866.00 21576.00 18076.00 20163.00 18824.00 21659.00 18598.00 21390.00 17995.00 20723.00 17669.00 20450.00 16702.00 19472.00 14944.00 17759.00 14994.00 18101.00 15961.00 19174.00 Dec. 2001 16325.00 19297.00 15760.00 18715.00 15534.00 18556.00 16476.00 19380.00 15773.00 18729.00 15875.00 18772.00 14769.00 17637.00 13536.00 16153.00 13765.00 16186.00 12405.00 14410.00 13231.00 15476.00 13803.00 16314.00 Dec. 2002 13205.00 15526.00 12786.00 15057.00 12456.00 14799.00 12367.00 14759.00 13571.00 16077.00 14354.00 17004.00 14572.00 17304.00 14765.00 17659.00 15163.00 18045.00 15265.00 18159.00 16061.00 19240.00 16151.00 19538.00 Dec. 2003 16832.00 20768.00
PERFORMANCE TABLE**
Cumulative Total Return Since++ Average Annual Total Return 10 December 9, Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year 5 Year Year 2003 Inception MSCI World Index* 33.76% -0.39% 7.58% -1.94% 107.68% 6.30% Global Equity Trust Series I 27.46% 0.12% 5.34% 0.61% 68.32% 3.39% Global Equity Trust Series II+++ 27.23% 3.40% 5.18% Global Equity Trust Series III*** 3.39% 9.07%
++ Current subadviser assignment became effective December 9, 2003. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Global Equity Trust Series I returned +27.46%, underperforming the +33.76% return of the MSCI World Index. ENVIRONMENT: After three years of declines, in 2003, global equity markets delivered the strongest annual total return gains since 1986. The main catalyst for the rally was an improving global economy, underpinned by years of expansionary fiscal and monetary policies, corporate restructuring and consolidation, and declining equity valuations that created opportunities for investors in Asia, Europe and the Americas. In many countries, including the United States, China and Japan, gross domestic product (GDP) growth accelerated in 2003, particularly in the second half of the year. Domestically, consumer spending rose, spurred largely by tax cuts, car-buying incentives and mortgage refinancing, as U.S. interest rates remained at their lowest level in more than four decades. In 2003, the value of the U.S. dollar fell against most major currencies, including a substantial decline versus the euro. While the decline magnified top-line and earnings-per-share growth in the U.S., it had the opposite effect in Europe. The dollar's decline benefited U.S. investors in international equities because it increased the returns of investments denominated in currencies whose value increased against the dollar, such as the euro. OUTLOOK: The portfolio seeks to invest in securities of companies located around the world, including the United States. We continue to adhere to our time-tested investment philosophy of identifying and evaluating securities based on a long-term, bottom-up and value-oriented investment approach. xxiii STRATEGIC GROWTH TRUST INVESTMENT OBJECTIVE The portfolio invests, under normal market conditions, at & POLICIES: least 65% of its total assets in common stocks and related securities (such as preferred stocks, bonds, warrants or rights Convertible into stock and depositary receipts for these securities) of companies which MFS believes offer superior prospects for growth. SUBADVISER: MFS Investment Management(R) PORTFOLIO MANAGERS: S. Irfan Ali INCEPTION DATE: April 30, 2001
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [STRATEGIC GROWTH TRUST PERFORMANCE GRAPH]
STRATEGIC GROWTH TRUST SERIES I RUSSELL 1000 GROWTH INDEX ------------------------------- ------------------------- Apr.2001 10000 10000 10000 9853 Jun. 2001 9704 9624 9232 9384 8432 8616 Sep. 2001 7384 7756 7920 8164 8680 8948 Dec. 2001 8816 8931 8336 8773 8025 8409 Mar. 2002 8440 8700 7760 7990 7520 7796 Jun. 2002 6768 7075 6280 6686 6336 6706 Sep. 2002 5680 6011 6313 6562 6841 6918 Dec. 2002 6344 6440 6264 6284 6144 6255 Mar. 2003 6208 6371 6743 6842 7095 7183 Jun. 2003 7183 7282 7319 7464 7503 7649 Sep. 2003 7319 7568 7727 7993 7815 8077 Dec. 2003 8048 8356
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Russell 1000 Growth* 29.75% -6.51% -16.44% Strategic Growth Trust Series I 26.86% -7.81% -19.52% Strategic Growth Trust Series II+++ 26.61% -2.68% -5.10% Strategic Growth Trust Series III*** 4.36%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Strategic Growth Trust Series I returned +26.86%, underperforming the +29.75% return of the Russell 1000 Growth Index and the +28.55% return of the Morningstar Large Growth Peer Group. ENVIRONMENT: Our positioning among Business Services stocks was the greatest impediment to performance. We sold our position in a firm that provides payroll and trade processing services after it experienced soft demand for its services and then announced plans to increase spending. A provider of investment and educational services to financial institutions also weighed on results. But we held onto the stock, in the belief that the company would be able to address soft demand for some of its products. Holdings in the Leisure sector also hurt relative performance, as weak advertising sales in radio, television and newspapers detracted from results. However, we retained some of these holdings because we believe market conditions in 2004 could offer growth opportunities for advertising-sensitive media companies -- given the confluence of a stronger economy, a U.S. presidential election, and the summer Olympics. Performance was held back by not owning a semiconductor chip giant as semiconductor stocks staged a strong rebound during the period. Strong relative positioning elsewhere in Technology did not fully offset the impact of underweighting this one stock. Our position in a moderate-priced apparel retailer also hurt performance. In the Health Care sector, we avoided or underweighted several large-cap pharmaceutical firms because we felt their medium-term growth prospects would be limited by patent expirations on key products as well as by a dearth of new drugs in the development pipeline. Instead, we invested in companies elsewhere in Health Care that we believed would offer stronger sustainable growth. This positioning proved beneficial for results. Underweighting Consumer Staples concerns also helped performance as that sector lagged the overall market. Stock selection in the Financial Services sector also helped performance. In particular, the portfolio's focus on capital markets-sensitive franchises helped performance as bond spreads narrowed, trading volumes rose, and underwriting activity showed signs of renewed life. xxiv CAPITAL APPRECIATION TRUST INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing at least POLICIES: 65% of the portfolio's total assets in equity-related securities of companies that exceed $1 billion in market capitalization and that Jennison Associates believes have above-average growth prospects. SUBADVISER: Jennison Associates, LLC PORTFOLIO MANAGERS: Michael Del Balso, Kathleen McCarragher, and Spiros Segalas INCEPTION DATE: November 1, 2000
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [CAPITAL APPRECIATION TRUST PERFORMANCE GRAPH]
CAPITAL APPRECIATION TRUST SERIES I RUSSELL 1000 GROWTH INDEX ----------------------------------- ------------------------- Oct. 2000 10000 10000 8640 8526 Dec. 2000 8776 8256 9279 8129 7960 6748 Mar. 2001 7432 6014 8064 6775 8032 6675 Jun. 2001 7656 6520 7447 6357 6815 5837 Sep. 2001 6151 5255 6495 5531 7127 6062 Dec. 2001 7160 6570 7016 6454 6800 6186 Mar. 2002 6960 6400 6496 5878 6320 5735 Jun. 2002 5808 5205 5320 4919 5304 4933 Sep. 2002 4816 4422 5144 4827 5440 5090 Dec. 2002 4968 4738 4848 4623 4792 4602 Mar. 2003 4880 4687 5264 5034 5560 5285 Jun. 2003 5560 5358 5791 5491 5991 5628 Sep. 2003 5815 5568 6167 5880 6223 5942 Dec. 2003 6432 6148
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Russell 1000 Growth Index* 29.75% -14.24% -38.52% Capital Appreciation Trust Series I 29.47% -13.02% -35.68% Capital Appreciation Trust Series II+++ 29.35% -4.30% -8.13% Capital Appreciation Trust Series III*** 5.51%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Capital Appreciation Trust Series I returned +29.47%, underperforming the +29.75% return of the Russell 1000 Growth Index. ENVIRONMENT: Information Technology stocks contributed significantly to returns, led by our emphasis in semiconductor and semiconductor equipment stocks. We added meaningfully to these and other Technology stocks in late 2002 and early 2003. In the fourth quarter, we opportunistically reduced selected semiconductor positions due to valuations, and redeployed the proceeds into other Technology stocks. So far, earnings growth for many of our holdings in this area is primarily a result of cost cutting. We believe that as revenue growth accelerates, these companies should demonstrate impressive operating leverage leading to upward earnings revisions and positive earnings surprises. Health Care stocks were among the largest contributors to absolute returns. Biotechnology holdings advanced on the back of a stream of encouraging product developments. Financial holdings also advanced, led by capital markets stocks. We expect higher-margin merger and acquisition and initial public offering (IPO) activity, increased corporate spending and a stronger global economy to be among the earnings drivers for these stocks in the coming year. OUTLOOK: The Trust's gains for the year were supported by accelerating profits alongside surging economic activity in the second half of the year. While we believe that the rapid pace of growth in the past two quarters will not likely be repeated, the fundamental drivers for healthy economic activity should remain in place, reinforcing our positive economic outlook and optimistic perspective for equities in 2004. xxv QUANTITATIVE ALL CAP TRUST INVESTMENT OBJECTIVE & To achieve long-term growth of capital. The portfolio seeks POLICIES: to achieve its objective by investing, under normal circumstances, primarily in equity securities of U.S. companies. The Fund will generally focus on equity securities of U.S. companies across the three market capitalization ranges of large, mid and small. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Rhonda Chang, Chris Hensen, Brett Hryb, Robert Lutzko, Mark Schmeer & Harpreet Singh INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [QUANTITATIVE ALL CAP TRUST PERFORMANCE GRAPH]
QUANTITATIVE ALL CAP TRUST SERIES I RUSSELL 3000 INDEX ----------------------------------- ------------------ Apr. 2003 10000 10000 May 2003 10488 10604 Jun. 2003 10536 10747 Jul. 2003 10792 10993 Aug. 2003 11017 11237 Sep. 2003 11000 11115 Oct. 2003 11680 11787 Nov. 2003 11960 11950 Dec. 2003 12449 12496
PERFORMANCE TABLE**
Cumulative Total Return Since Periods Ended December 31, 2003 Inception Russell 3000 Index* 24.96% Quantitative All Cap Trust Series I 24.49% Quantitative All Cap Trust Series II 24.38% Quantitative All Cap Trust Series III*** 10.42%
* All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: Since its inception on May 5, 2003, the Quantitative All Cap Trust Series I returned +24.49%, underperforming the +24.96% return of the Russell 3000 Index. ENVIRONMENT: Better than expected earnings results throughout the year coupled with a strong rebound in the economy and the end of the war in Iraq helped to propel the market higher. The economically sensitive sectors such as Basics, Consumer Durables and Technology outperformed, while the less economically sensitive sectors such as Telecommunications, Consumer Staples and Health Care underperformed. Successful allocation to stocks of different sizes combined with stock selection in Technology, Consumer Staples and Financials contributed positively to the Trust's performance. OUTLOOK: We expect positive returns in 2004, albeit at much lower levels than those experienced in 2003. Economic growth in 2004 should average around 4%. Growth will be driven by accelerated business investment, which should offset moderating consumer spending activity. Given this economic backdrop, earnings growth should average 10% to 15%. Historically this type of environment has been positive for stocks, with returns averaging 11% to 14%. However, there are a few risks on the horizon. With economic growth at healthy levels the risk of inflation and the Federal Reserve's policy to deal with it should not be discounted. When the Fed is tightening, returns in the market have historically been negative. The Trust is well positioned to provide strong performance in an improving economy and rising stock market. The average earnings growth rates and earnings revisions for the stocks in the Trust are greater than those of the Russell 3000 Index, yet the Trust's valuation characteristics continue to remain more attractive than those of the market. xxvi ALL CAP CORE TRUST (FORMERLY GROWTH TRUST) INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing in & POLICIES: stocks within all assets classes (small-, mid- and large-cap) primarily those within the Russell 3000 Index. SUBADVISER: Deutsche Asset Management PORTFOLIO MANAGERS: Janet Campagna & Robert Wang INCEPTION DATE: July 15, 1996++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [ALL CAP CORE TRUST PERFORMANCE GRAPH]
RUSSELL 3000 INDEX COMBINED INDEX ALL CAP CORE TRUST SERIES I ------------------ -------------- --------------------------- 10000 10000 10000 9477 9415 9936 9765 9658 10304 10296 10361 10808 10484 10424 10768 11224 11206 11400 Dec-96 11089 10987 11053 11702 11758 11697 11715 11678 11432 11185 11046 11077 11736 11779 11593 12537 12630 12293 13059 13135 12937 14082 14297 14056 13511 13460 13412 14277 14122 14081 13798 13600 13485 14326 14178 13598 Dec-97 14613 14337 13855 14689 14765 14016 15740 15876 14894 16520 16509 15659 16682 16737 15892 16270 16262 15657 16820 17258 16503 16515 17144 16269 13985 14571 13622 14939 15690 14443 16073 16952 15331 17056 18241 16009 Dec-98 18140 19886 17174 18756 21053 18321 18092 20092 17861 18756 21150 18824 19602 21177 18697 19230 20526 18417 20202 21964 19714 19589 21266 19206 19366 21613 19486 18871 21159 19066 20055 22757 20345 20616 23985 21345 Dec-99 21932 26480 23563 21072 25238 22353 21268 26472 23580 22934 28367 25412 22126 27017 24097 21504 25657 22967 22141 27601 24522 21749 26450 23392 23362 28845 25410 22304 26117 22407 21987 24881 21064 19960 21213 17916 Dec-00 20296 20542 17133 20990 21961 17771 19072 18233 14690 17829 16249 12951 19259 18304 14786 19413 18034 14719 19055 17617 14651 18741 17176 14284 17635 15772 13106 16079 14197 11783 16453 14942 12372 17720 16378 13357 Dec-01 17970 16347 13473 17745 16058 13212 17382 15391 12507 18144 15924 12922 17192 14624 12063 16993 14270 11667 15770 12950 10827 14516 12238 10228 14585 12275 10209 13052 11002 9310 14092 12011 10102 14944 12663 10547 Dec-02 14099 11947 10073 13754 11655 9909 13528 11463 9716 13670 11584 9841 14787 12530 10566 15679 13286 11155 15891 13465 11242 16255 13774 11464 16615 14079 11802 16435 13926 11725 17430 14769 12459 17670 14973 12691 Dec-03 18477 15656 13251
PERFORMANCE TABLE**
Cumulative Total Average Annual Total Return Return Since Since++ Since Periods Ended December 31, 2003 1 Year 5 Year Inception Nov 25, 2002 5 Year Inception Russell 3000 Index* 31.06% 0.37% 9.42% 21.64% 1.86% 84.77% Combined Index+* 31.06% -4.67% 7.10% 21.64% -21.26% 56.56% All Cap Core Trust Series I 31.54% -5.05% 3.84% 23.82% -22.84% 32.51% All Cap Core Trust Series II+++ 31.26% 0.19% 23.67% 0.37%
+ The Combined Index was added to more accurately reflect the investment objective of the All Cap Core Trust. The Combined Index is a blend of the Russell 1000 Growth Index from inception through December 31, 2002 and the Russell 3000 Index from January 1, 2003 and thereafter. ++ Current subadviser assignment became effective November 25, 2002. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the All Cap Core Trust Series I returned +31.54%, outperforming the +31.06% return of the Russell 3000 Index and the +28.04% return of the Lipper Multi Cap Core Average Funds Classification. ENVIRONMENT: Domestic equity markets experienced one of their best years on record. Small capitalization stocks had an especially strong year. As measured by the Russell 2000 Index, these stocks returned +47.25%, while the Russell 1000 Index returned +29.89%. With respect to the All Cap Core portfolio, stocks within Automobiles and Components had the highest absolute performance, returning +68.9% for the year. In terms of relative performance, stock selection within Diversified Financials added more than any other industry group, generating 1.1% of relative performance. The largest drag on relative performance was the Materials sector, detracting 0.8 percentage points. Stocks in the Index in this industry group returned +34.8% while poor stock selection within the Materials group in the portfolio generated a return of only +11.4%. OUTLOOK: The market volatility experienced in the first half of 2003 has diminished greatly and fundamental characteristics are now more likely to be driving individual stock performance. This is expected to continue into 2004. Currently the portfolio remains positioned to be style, capitalization and industry group neutral to the Russell 3000 benchmark. Therefore, the strategy seeks to add value purely through stock selection bets relative to the benchmark weights of the individual securities. The position taken in an individual security depends on the relative value, growth, market sentiment, and risk characteristics relative to the security's peer group. xxvii LARGE CAP GROWTH TRUST INVESTMENT OBJECTIVE & To achieve long-term growth of capital invests at least 80% POLICIES: of the portfolio's assets in securities (primarily common stocks) of companies with large market capitalizations. Portfolio securities are selected based on the fundamental analysis of each issuer. Investments may include domestic and foreign issuers, and growth or value stocks or a combination of both. SUBADVISER: Fidelity(R) Management & Research Company PORTFOLIO MANAGER: Karen Firestone INCEPTION DATE: August 3, 1989++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [LARGE CAP GROWTH TRUST PERFORMANCE GRAPH]
LARGE CAP GROWTH TRUST SERIES I RUSSELL 1000 GROWTH INDEX COMBINED INDEX ---------------------- ------------------------- -------------- Dec. 1993 10000.00 10000.00 10000.00 10324.00 10231.00 10358.00 10091.00 10045.00 10212.00 9717.00 9559.00 9845.00 9816.00 9605.00 9957.00 9931.00 9750.00 9993.00 9727.00 9462.00 9899.00 10002.00 9785.00 10095.00 10233.00 10331.00 10367.00 10020.00 10190.00 10188.00 10153.00 10430.00 10339.00 9851.00 10096.00 10055.00 Dec. 1994 9931.00 10266.00 10156.00 9905.00 10484.00 10228.00 10127.00 10924.00 10481.00 10385.00 11243.00 10770.00 10637.00 11489.00 11027.00 10893.00 11890.00 11274.00 11064.00 12349.00 11430.00 11462.00 12862.00 11809.00 11491.00 12876.00 11806.00 11737.00 13469.00 12100.00 11614.00 13479.00 12014.00 11956.00 14003.00 12364.00 Dec. 1995 12193.00 14083.00 12608.00 12411.00 14554.00 12814.00 12478.00 14820.00 12905.00 12535.00 14839.00 13016.00 12661.00 15230.00 13241.00 12794.00 15762.00 13373.00 12835.00 15783.00 13373.00 12477.00 14858.00 12971.00 12630.00 15242.00 13188.00 13122.00 16352.00 13655.00 13317.00 16450.00 13780.00 13890.00 17685.00 14386.00 Dec. 1996 13778.00 17339.00 14268.00 14065.00 18555.00 14552.00 14095.00 18430.00 14625.00 13757.00 17432.00 14296.00 14146.00 18590.00 14660.00 14912.00 19931.00 15396.00 15426.00 20729.00 15955.00 16283.00 22562.00 16694.00 15643.00 21242.00 16131.00 16500.00 22287.00 16830.00 15963.00 21463.00 16355.00 16329.00 22375.00 16607.00 Dec. 1997 16409.00 22626.00 16826.00 16626.00 23302.00 17083.00 17631.00 25055.00 17903.00 18385.00 26053.00 18469.00 18573.00 26414.00 18632.00 18291.00 25664.00 18421.00 18688.00 27236.00 18795.00 18586.00 27056.00 18662.00 16037.00 22996.00 16803.00 16818.00 24762.00 17292.00 17715.00 26752.00 18229.00 18637.00 28787.00 19055.00 Dec. 1998 19546.00 31383.00 19798.00 20046.00 33226.00 20182.00 19482.00 31708.00 19684.00 20199.00 33378.00 20251.00 20480.00 33421.00 20921.00 19855.00 32394.00 20279.00 20850.00 34663.00 21698.00 20480.00 33561.00 21008.00 20793.00 34109.00 21351.00 20267.00 33393.00 20902.00 21504.00 35915.00 22480.00 22470.00 37852.00 23692.00 Dec. 1999 24488.00 41789.00 26156.00 23707.00 39830.00 24929.00 25085.00 41777.00 26148.00 25512.00 44767.00 28021.00 24205.00 42637.00 26687.00 23254.00 40490.00 25342.00 24622.00 43559.00 27263.00 23855.00 41743.00 26126.00 25541.00 45522.00 28490.00 23888.00 41216.00 25795.00 23120.00 39266.00 24575.00 20867.00 33478.00 20953.00 Dec. 2000 21000.00 32419.00 20290.00 21384.00 34658.00 21693.00 19347.00 28774.00 18009.00 18012.00 25643.00 16050.00 19510.00 28886.00 18080.00 19458.00 28461.00 17814.00 19109.00 27802.00 17401.00 18603.00 27107.00 16966.00 17329.00 24891.00 15578.00 15532.00 22406.00 14023.00 16125.00 23581.00 14760.00 17277.00 25846.00 16178.00 Dec. 2001 17259.00 25798.00 16147.00 17085.00 25342.00 15862.00 16718.00 24290.00 15203.00 17329.00 25130.00 15729.00 16346.00 23079.00 14446.00 16189.00 22521.00 14096.00 15121.00 20438.00 12792.00 13984.00 19314.00 12089.00 13931.00 19372.00 12125.00 12583.00 17362.00 10868.00 13529.00 18955.00 11864.00 14194.00 19985.00 12508.00 Dec. 2002 13319.00 18604.00 11644.00 12916.00 18153.00 11361.00 12846.00 18069.00 11309.00 12951.00 18405.00 11519.00 13848.00 19766.00 12370.00 14533.00 20753.00 12988.00 14585.00 21039.00 13167.00 14954.00 21562.00 13495.00 15252.00 22099.00 13831.00 15077.00 21862.00 13683.00 15849.00 23090.00 14452.00 15972.00 23332.00 14604.00 Dec. 2003 16691.00 24138.00 15108.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since++ Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year May 1, 1999 5 Year 10 Year Inception Russell 1000 Growth Index* 29.75% -5.11% 9.21% -6.73% -23.08% 141.38% Combined Index*+ 29.75% -5.26% 4.21% -6.73% -23.68% 51.08% Large Cap Growth Trust Series I 25.33% -3.11% 5.26% -4.29% -14.60% 66.91% Large Cap Growth Trust Series II+++ 25.24% -2.50%
+ The Combined Index is comprised of 47.5% of the return of the Wilshire 5000 Index, 20% of the MSCI EAFE Index, 15% of the Lehman Brothers Aggregate Bond Index, 10% of the 90 Day T-Bill, and 7.5% of the Merrill Lynch High Yield Index since inception and 100% return of the Russell 1000 Growth Index thereafter. The Combined Index was prepared by the adviser using Ibbotson Associates Software and Data. ++ Current subadviser assignment became effective May 1, 1999. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Large Cap Growth Trust Series I returned +25.33%, underperforming the +29.75% return of the Russell 1000 Growth Index. ENVIRONMENT: The broad U.S. stock market, as represented by the S&P 500 Index, gained substantial ground in 2003, providing some relief to investors who endured several years of dismal equity returns. The strong results were likely a product of several factors: Improving economic conditions led to a rapid gain in corporate earnings, and investors reacted to the strong earnings reports by pushing stock prices higher. In this environment, the portfolio underperformed the Index. Security selection in Telecommunication Services was a major detractor, as one of the portfolio's holdings experienced a labor dispute. Stock picking in Technology further detracted, led by several large-cap stocks that underperformed the sector. On the positive side was security selection in Consumer Discretionary, where holdings in some online retailers performed well as investor attention once again turned to these types of companies. Additionally, the portfolio benefited from security selection in Financials, particularly among brokers and asset management companies that rebounded as market and trading activity improved. xxviii QUANTITATIVE EQUITY TRUST INVESTMENT OBJECTIVE & To achieve intermediate and long-term growth through capital POLICIES: appreciation and current income by investing at least 80% of its net assets in common stocks or in securities convertible into common stock or carrying rights or warrants to purchase common stocks or to participate in earnings. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Rhonda Chang, Chris Hensen, Brett Hryb & Mark Schmeer INCEPTION DATE: April 30, 1987
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [QUANTITIVE EQUITY TRUST PERFORMANCE GRAPH]
QUANTITATIVE EQUITY TRUST SERIES I S&P 500 INDEX ---------------------------------- ------------- Dec.1993 10000.00 10000.00 10410.00 10335.00 10113.00 10056.00 9504.00 9619.00 9625.00 9744.00 9655.00 9902.00 9340.00 9658.00 9732.00 9977.00 10124.00 10384.00 9948.00 10133.00 10033.00 10365.00 9594.00 9985.00 Dec.1994 9579.00 10131.00 9635.00 10394.00 9967.00 10797.00 10160.00 11117.00 10167.00 11441.00 10409.00 11892.00 10693.00 12172.00 11067.00 12577.00 11070.00 12611.00 11624.00 13140.00 11559.00 13094.00 12104.00 13670.00 Dec.1995 12379.00 13923.00 12687.00 14402.00 12898.00 14540.00 12914.00 14679.00 13177.00 14895.00 13463.00 15279.00 13426.00 15342.00 12696.00 14659.00 13124.00 14970.00 13807.00 15811.00 14239.00 16245.00 14992.00 17478.00 Dec.1996 14598.00 17135.00 15432.00 18199.00 15517.00 18347.00 14910.00 17583.00 15643.00 18633.00 16528.00 19777.00 17244.00 20659.00 18785.00 22300.00 18019.00 21060.00 19038.00 22213.00 18162.00 21471.00 18583.00 22465.00 Dec.1997 18954.00 22852.00 18945.00 23105.00 20327.00 24772.00 21363.00 26040.00 21507.00 26302.00 20985.00 25850.00 21735.00 26900.00 21241.00 26614.00 18089.00 22766.00 19190.00 24224.00 20691.00 26195.00 21944.00 27782.00 Dec.1998 23948.00 29383.00 25125.00 30612.00 24309.00 29661.00 25533.00 30847.00 25741.00 32042.00 25055.00 31286.00 26594.00 33022.00 26085.00 31991.00 25731.00 31833.00 25065.00 30960.00 26501.00 32919.00 27125.00 33589.00 Dec.1999 29288.00 35567.00 28643.00 33780.00 29413.00 33141.00 32585.00 36383.00 31466.00 35288.00 30493.00 34564.00 32272.00 35416.00 31952.00 34862.00 34845.00 37028.00 33908.00 35073.00 33446.00 34925.00 30126.00 32171.00 Dec.2000 31134.00 32328.00 31750.00 33475.00 28324.00 30423.00 26166.00 28496.00 28772.00 30710.00 28437.00 30916.00 27099.00 30163.00 26373.00 29867.00 24184.00 27997.00 21534.00 25736.00 22398.00 26227.00 23765.00 28239.00 Dec.2001 23988.00 28486.00 23235.00 28071.00 22426.00 27529.00 23472.00 28565.00 21533.00 26833.00 21155.00 26635.00 19338.00 24738.00 17940.00 22809.00 18079.00 22959.00 15898.00 20464.00 17380.00 22265.00 18261.00 23576.00 Dec.2002 17324.00 22190.00 16821.00 21608.00 16443.00 21284.00 16457.00 21491.00 17574.00 23261.00 18574.00 24487.00 18855.00 24801.00 19010.00 25237.00 19320.00 25729.00 19207.00 25457.00 19911.00 26897.00 20235.00 27134.00 Dec.2003 21404.00 28557.00
PERFORMANCE TABLE**
Cumulative Total Return Average Annual Total Return Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year 5 Year 10 Year Inception S&P 500 Index* 28.70% -0.57% 11.06% -2.81% 185.57% Quantitative Equity Trust Series I 23.55% -2.22% 7.91% -10.62% 114.04% Quantitative Equity Trust Series II+++ 23.40% -9.10% Quantitative Equity Trust Series III*** 8.88%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Quantitative Equity Trust Series I returned +23.55%, underperforming the +28.70% return of the S&P 500 Index and the +26.72% return of the Morningstar Large Blend Peer Group. ENVIRONMENT: Economic data improved steadily throughout the year. Figures for 2003 economic growth showed steady improvement from 1.4% in the first quarter, 3.3% in the second quarter and more than 8% for the third quarter. Employment data also showed an improving trend during the third and fourth quarters. The Technology sector was strong, with returns up by more than 46% for the year. Other sectors that performed well included Materials and Consumer Discretionary. Sectors that performed poorly for the year were Telecommunications Utilities, Consumer Staples and Health Care. Performance for the year was strong in absolute terms but lagged that of the S&P 500 Index. The Trust's average cash position of about 3% hurt performance. The large cap bias of the portfolio also had a negative impact due to the exceptional performance of the smallest, most expensive stocks within the benchmark. Sectors that detracted from performance during 2003 included Capital Goods and Consumer Staples. The Trust was overweight the Consumer Staples sector for most of the year and this sector underperformed the broader S&P 500 index. In Capital Goods the large defense names all underperformed the market and the Trust had positions in several of these names. Stock selection in Health Care strongly added to performance. Large Cap pharmaceutical stocks were down meaningfully in 2003 and the fund benefit from its under weight to this group. OUTLOOK: We are bullish on the U.S. markets in 2004 given our forecasts for economic growth and inflation (4% and 2%, respectively). Our expectation for positive returns in 2004 is tempered by potential risks, the biggest being the future direction of interest rates. Given the growth we have seen in the U.S. economy, it is possible the Federal Reserve will take action on interest rates as early as May. xxix BLUE CHIP GROWTH TRUST INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing at least & POLICIES: 80% of the portfolio's net assets in the common stocks of large and medium sized blue chip companies as defined by T. Rowe Price Associates, Inc. These are firms that the managers believe are well established in their industries and have the potential for above-average earnings growth. Current income is a secondary objective. SUBADVISER: T. Rowe Price Associates, Inc. PORTFOLIO MANAGER: Larry J. Puglia INCEPTION DATE: December 11, 1992++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [BLUE CHIP GROWTH TRUST PERFORMANCE GRAPH]
BLUE CHIP GROWTH TRUST SERIES I RUSSELL 1000 GROWTH S&P 500 INDEX ---------------------- ------------------- ------------- Dec.1993 10000.00 10000.00 10000.00 10115.00 10231.00 10335.00 9916.00 10045.00 10056.00 9382.00 9559.00 9619.00 9541.00 9605.00 9744.00 9488.00 9750.00 9902.00 9110.00 9462.00 9658.00 9352.00 9785.00 9977.00 9920.00 10331.00 10384.00 9709.00 10190.00 10133.00 9804.00 10430.00 10365.00 9594.00 10096.00 9985.00 Dec.1994 9520.00 10266.00 10131.00 9741.00 10484.00 10394.00 9951.00 10924.00 10797.00 10246.00 11243.00 11117.00 10387.00 11489.00 11441.00 10714.00 11890.00 11892.00 11158.00 12349.00 12172.00 11623.00 12862.00 12577.00 11612.00 12876.00 12611.00 11950.00 13469.00 13140.00 11771.00 13479.00 13094.00 12119.00 14003.00 13670.00 Dec.1995 12046.00 14083.00 13923.00 12447.00 14554.00 14402.00 12743.00 14820.00 14540.00 12838.00 14839.00 14679.00 13353.00 15230.00 14895.00 13872.00 15762.00 15279.00 13735.00 15783.00 15342.00 12834.00 14858.00 14659.00 13321.00 15242.00 14970.00 14371.00 16352.00 15811.00 14318.00 16450.00 16245.00 15377.00 17685.00 17478.00 Dec.1996 15165.00 17339.00 17135.00 15801.00 18555.00 18199.00 15822.00 18430.00 18347.00 15102.00 17432.00 17583.00 15772.00 18590.00 18633.00 16684.00 19931.00 19777.00 17377.00 20729.00 20659.00 18686.00 22562.00 22300.00 17839.00 21242.00 21060.00 18698.00 22287.00 22213.00 18262.00 21463.00 21471.00 18827.00 22375.00 22465.00 Dec.1997 19250.00 22626.00 22852.00 19468.00 23302.00 23105.00 20944.00 25055.00 24772.00 21894.00 26053.00 26040.00 22121.00 26414.00 26302.00 21572.00 25664.00 25850.00 22552.00 27236.00 26900.00 22304.00 27056.00 26614.00 18708.00 22996.00 22766.00 19820.00 24762.00 24224.00 21532.00 26752.00 26195.00 22853.00 28787.00 27782.00 Dec.1998 24735.00 31383.00 29383.00 25441.00 33226.00 30612.00 24722.00 31708.00 29661.00 25638.00 33378.00 30847.00 26293.00 33421.00 32042.00 25542.00 32394.00 31286.00 27084.00 34663.00 33022.00 26183.00 33561.00 31991.00 25883.00 34109.00 31833.00 25392.00 33393.00 30960.00 27166.00 35915.00 32919.00 27753.00 37852.00 33589.00 Dec.1999 29542.00 41789.00 35567.00 28586.00 39830.00 33780.00 28873.00 41777.00 33141.00 31357.00 44767.00 36383.00 30410.00 42637.00 35288.00 29739.00 40490.00 34564.00 31509.00 43559.00 35416.00 30866.00 41743.00 34862.00 33506.00 45522.00 37028.00 31794.00 41216.00 35073.00 31081.00 39266.00 34925.00 28098.00 33478.00 32171.00 Dec.2000 28726.00 32419.00 32328.00 29125.00 34658.00 33475.00 26029.00 28774.00 30423.00 23817.00 25643.00 28496.00 26141.00 28886.00 30710.00 26358.00 28461.00 30916.00 25707.00 27802.00 30163.00 25041.00 27107.00 29867.00 23290.00 24891.00 27997.00 21601.00 22406.00 25736.00 22438.00 23581.00 26227.00 24204.00 25846.00 28239.00 Dec.2001 24530.00 25798.00 28486.00 23832.00 25342.00 28071.00 23135.00 24290.00 27529.00 24220.00 25130.00 28565.00 22732.00 23079.00 26833.00 22345.00 22521.00 26635.00 20408.00 20438.00 24738.00 18920.00 19314.00 22809.00 19277.00 19372.00 22959.00 17278.00 17362.00 20464.00 18936.00 18955.00 22265.00 19881.00 19985.00 23576.00 Dec.2002 18579.00 18604.00 22190.00 18207.00 18153.00 21608.00 18022.00 18069.00 21284.00 18331.00 18405.00 21491.00 19828.00 19766.00 23261.00 20852.00 20753.00 24487.00 21115.00 21039.00 24801.00 21580.00 21562.00 25237.00 21828.00 22099.00 25729.00 21518.00 21862.00 25457.00 22681.00 23090.00 26897.00 22914.00 23332.00 27134.00 Dec.2003 23999.00 24138.00 28557.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since++ Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year Oct 1, 1996 5 Year 10 Year Inception S&P 500 Index+ 28.70% -0.57% 11.06% 8.50% -2.81% 185.57% Russell 1000 Growth* 29.75% -5.11% 9.21% 5.52% -23.08% 141.38% Blue Chip Growth Trust Series I 29.17% -0.60% 9.15% 7.40% -2.98% 139.99% Blue Chip Growth Trust Series II+++ 29.02% -0.48% Blue Chip Growth Trust Series III*** 7.80%
++ Current subadviser assignment became effective October 1, 1996. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 + This Index was added to more accurately reflect the investment objective of the Trust. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Blue Chip Growth Trust Series I returned +29.17%, outperforming the +28.70% return of the S&P 500 Index. ENVIRONMENT: U.S. stocks posted solid gains in 2003. Investors bid up equities, which were buoyed by favorable economic data, stronger earnings growth, signs of job market stabilization and rising global demand. For the year, the portfolio posted a strong gain that almost matched the style-specific Russell 1000 Growth Index and edged the S&P 500 Index. The Telecommunications Services sector produced the strongest contribution to the portfolio's relative results, largely because of good stock selection. Two communications firms rallied sharply and were top absolute and relative performance contributors for the year. Similarly, the Health Care sector contributed to relative results despite our overweight position, which limited gains. Strength came mostly from pharmaceuticals and biotechnology holdings during the period. The Consumer Discretionary sector was the largest drag on relative results, and although the Information Technology (IT) sector led the market higher, the IT services industry languished. OUTLOOK: As economic growth continues to accelerate into 2004, we expect earnings at many U.S. companies to also show sharp improvement. Despite the strong gains this year, driven mostly by small- and mid-cap stocks, we are optimistic about the prospects for large-cap stocks as history indicates that this group is likely to outperform in the second year of an expansion. Additionally, we believe that many consistent growth companies with strong free cash flow and dividend growth potential appear to be undervalued, providing us with advantageous investing opportunities. xxx U.S. LARGE CAP TRUST (FORMERLY U.S. LARGE CAP VALUE TRUST) INVESTMENT OBJECTIVE & To achieve long-term growth of capital and income by POLICIES: investing at least 80% of the portfolio's net assets in equity and equity-related securities of companies with market capitalization greater than $500 million at the time of purchase. SUBADVISER: Capital Guardian Trust Company PORTFOLIO MANAGERS: Terry Berkemeier, Michael R. Ericksen, David I. Fisher, Karen A. Miller, Theodore R. Samuels, Eugene P. Stein and Alan J. Wilson INCEPTION DATE: May 1, 1999
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [U.S. LARGE CAP TRUST PERFORMANCE GRAPH]
S&P 500 INDEX US LARGE CAP TRUST SERIES I ------------- --------------------------- 10000.00 10000.00 9764.00 9744.00 10306.00 10168.00 9984.00 10040.00 9935.00 9808.00 9662.00 9416.00 10274.00 9744.00 10483.00 9808.00 Dec.1999 11100.00 10272.00 10542.00 9800.00 10343.00 9696.00 11355.00 10656.00 11013.00 10606.00 10787.00 10590.00 11053.00 10566.00 10880.00 10509.00 11556.00 11042.00 10946.00 10711.00 10900.00 10687.00 10040.00 9977.00 Dec.2000 10089.00 10558.00 10447.00 11058.00 9495.00 10219.00 8893.00 9808.00 9584.00 10689.00 9649.00 10869.00 9414.00 10591.00 9321.00 10509.00 8738.00 9930.00 8032.00 8780.00 8185.00 9179.00 8813.00 10028.00 Dec.2001 8890.00 10289.00 8761.00 10053.00 8592.00 9718.00 8915.00 10330.00 8374.00 9678.00 8313.00 9514.00 7720.00 8524.00 7119.00 7690.00 7165.00 7592.00 6387.00 6806.00 6949.00 7551.00 7358.00 8303.00 Dec.2002 6925.00 7698.00 6744.00 7534.00 6643.00 7510.00 6707.00 7608.00 7260.00 8316.00 7642.00 8891.00 7740.00 9031.00 7876.00 9285.00 8030.00 9507.00 7945.00 9327.00 8394.00 9935.00 8468.00 10074.00 Dec. 2003 8912.00 10551.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception S&P 500 Index* 28.70% -2.44% -10.88% U.S. Large Cap Trust Series I 37.06% 1.16% 5.51% U.S. Large Cap Trust Series II+++ 36.68% 2.26% 4.41% U.S. Large Cap Trust Series III*** 9.56%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the U.S. Large Cap Trust Series I returned 37.06%, outperforming the 28.70% return of the S&P 500 Index. ENVIRONMENT: The U.S. equity market closed 2003 very strongly, with all sectors in the portfolio returning double-digits for the year. The largest contributor to relative returns for the year was an overweight and strong stock selection in Technology -- specifically semiconductor equipment manufacturers and other companies focusing on high-value-added equipment or components within the technology chain. Stock selection within the pharmaceuticals industry also helped as our concentration in companies with solid drug pipelines outperformed the Index for the year. The portfolio's underweight to Consumer Staples was also helpful as Foods and other less economically sensitive stocks underperformed the broad market. On the negative side, stock selection among Integrated Oils and Financial stocks hindered results. OUTLOOK: The best results in 2003 came from depressed industries such as Technology and from stocks of low-quality companies whose prospects dramatically improved as their balance sheets recovered. Many of these stocks now look fully valued. Our research is currently identifying attractive investments in a broader range of sectors, often in defensive industries that trailed the market for most of 2003. xxxi STRATEGIC VALUE TRUST (FORMERLY CAPITAL OPPORTUNITIES TRUST) INVESTMENT OBJECTIVE & To seek capital appreciation. The portfolio invests, under POLICIES: normal market conditions, at least 65% of its net assets in common stocks and related securities, such as preferred stock, convertible securities and depositary receipts, of companies which MFS believes are undervalued in the market relative to their long term potential. SUBADVISER: MFS Investment Management PORTFOLIO MANAGER: Kenneth J. Enright INCEPTION DATE: April 30, 2001 (manager, investment process & style changed as of May 1, 2003)
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [STRATEGIC VALUE TRUST PERFORMANCE GRAPH]
STRATEGIC VALUE TRUST SERIES I S&P 500 INDEX RUSSELL 1000 VALUE INDEX ---------------------------- ------------- ------------------------ Apr.2001 10000 10000 10000 9960 10067 10225 Jun.2001 9568 9822 9998 9135 9726 9977 8296 9117 9577 Sep.2001 7303 8381 8903 7712 8541 8826 8383 9196 9339 Dec.2001 8560 9276 9559 8168 9141 9486 8048 8964 9501 Mar.2002 8472 9302 9950 7968 8738 9609 7736 8673 9657 Jun.2002 6976 8055 9103 6305 7427 8257 6376 7476 8319 Sep.2002 5729 6664 7394 6152 7250 7942 6704 7677 8442 Dec.2002 6232 7225 8075 6088 7036 7880 5936 6930 7670 Mar.2003 5976 6997 7683 6545 7574 8359 6977 7973 8899 Jun.2003 7161 8075 9010 7217 8217 9144 7425 8378 9287 Sep.2003 7257 8289 9196 7505 8758 9758 7537 8835 9891 Dec.2003 8025 9299 10500
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception S&P 500 Index* 28.70% -2.69% -7.01% Russell 1000 Value Index*+ 30.03% 1.85% 5.00% Strategic Value Trust Series I 28.78% -7.90% -19.75% Strategic Value Trust Series II+++ 28.68% -1.31% -2.52% Strategic Value Trust Series III*** 6.48%
+ The Index was added to more accurately reflect the current strategy of the manager. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Strategic Value Trust Series I returned +28.78%, underperforming the +30.03% return of the Russell 1000 Value Index. ENVIRONMENT: An underweighting in technology and stock selection in the energy sectors were key factors in the portfolio's relative underperformance compared with its benchmark. One pharmaceutical company saw its stock price decline sharply because of announcements of lower earnings, investigations of past pricing and shareholder reporting practices, and marketing difficulties with a prescription allergy drug. The portfolio's position in several Energy companies also hurt relative performance as concerns arose over sustainable natural gas prices and the lack of evidence of capital spending in the industry. In Basic Materials, the stock of a company that manufactures glass and plastic packaging detracted from performance as it faced pressure from rising fuel prices at its factories as well as concerns about its highly leveraged balance sheet and potential asbestos liabilities. Retailing, Utilities and Communications were among the portfolio's strongest-performing sectors, and individual holdings in several other sectors, such as Financial Services, contributed to performance. A large undervalued retailer contributed to positive performance. Another large retailer performed well as it posted strong sales figures after beginning the year selling at a very attractive valuation. The portfolio also benefited from a large wireless telephone company and a bank merger that boosted the stock price of a bank holding on the announcement of a large takeover offer. xxxii LARGE CAP VALUE TRUST INVESTMENT OBJECTIVE The portfolio seeks long-term growth of capital through & POLICIES: investment primarily in a diversified portfolio of equity securities of large-cap companies located in the United States. The portfolio seeks to achieve its investment objective by investing at least 80% of its net assets in common stocks of large cap companies the subadviser selects from among those that are, at the time of purchase, included in the Russell 1000 Index. SUBADVISER: Mercury Advisors PORTFOLIO MANAGER: Bob Doll INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [LARGE CAP VALUE TRUST PERFORMANCE GRAPH]
LARGE CAP VALUE TRUST SERIES I RUSSELL 1000 VALUE INDEX ------------------------------ ------------------------ Apr. 2003 10000 10000 May 2003 10504 10645 Jun. 2003 10696 10778 Jul. 2003 10832 10938 Aug. 2003 11128 11109 Sep. 2003 11152 11000 Oct. 2003 12152 11673 Nov. 2003 12536 11832 Dec. 2003 12765 12562
PERFORMANCE TABLE**
Cumulative Total Return Periods Ended December 31, 2003 Since Inception Russell 1000 Value Index* 25.62% Large Cap Value Trust Series I 27.65% Large Cap Value Trust Series II 27.49%
* All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: Since the Trust's inception on May 5, 2003, the Large Cap Value Trust Series I returned +27.65%, outperforming the +25.62% return of the Russell 1000 Value Index. ENVIRONMENT: The Trust's performance versus its benchmark benefited from positive stock selection in the Health Care and Consumer Discretionary sectors, a significant overweight in the Consumer Discretionary sector, and a considerable underweight in Telecommunication Services. Conversely, poor stock selection and underweight positions in the Financials and Materials sectors detracted from the relative return. During the year, we adopted a more cyclical orientation to the portfolio with increased leverage to an improving U.S. economy. Consequently, we added significantly to our Information Technology holdings, maintained an overweight exposure in the Consumer Discretionary sector, and trimmed our positions in Health Care, Energy and Consumer Staples. OUTLOOK: The portfolio remains overweight versus the benchmark in cyclical areas of the market, including Consumer Discretionary and Information Technology, and underweight in Financials and Consumer Staples. As usual, through careful stock selection, we are focusing on companies that we believe have positive earnings momentum, earnings surprises, and valuation characteristics. xxxiii UTILITIES TRUST INVESTMENT OBJECTIVE To achieve capital growth and current income (income above & POLICIES: that available from a portfolio invested entirely in equity securities) by investing at least 80% of the portfolio's net assets in equity and debt securities of domestic and foreign companies in the utilities industry. SUBADVISER: MFS Investment Management(R) PORTFOLIO MANAGER: Maura A. Shaughnessy INCEPTION DATE: April 30, 2001
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [UTILITIES TRUST PERFORMANCE GRAPH]
UTILITIES TRUST SERIES I S&P UTILITIES INDEX ------------------------ ------------------- Apr. 2001 10000.00 10000.00 9688.00 9681.00 Jun. 2001 9048.00 8910.00 8712.00 8499.00 8216.00 8268.00 Sep. 2001 7424.00 7311.00 7424.00 7284.00 7336.00 6893.00 Dec. 2001 7470.00 7073.00 6891.00 6666.00 6698.00 6519.00 Mar. 2002 7068.00 7312.00 6787.00 7176.00 6465.00 6539.00 Jun. 2002 5966.00 6075.00 5404.00 5226.00 5661.00 5422.00 Sep. 2002 5243.00 4721.00 5436.00 4636.00 5652.00 4758.00 Dec. 2002 5717.00 4952.00 5733.00 4800.00 5621.00 4573.00 Mar. 2003 5749.00 4797.00 6264.00 5212.00 6729.00 5756.00 Jun. 2003 6891.00 5821.00 6704.00 5441.00 6794.00 5545.00 Sep. 2003 6932.00 5792.00 7063.00 5854.00 7217.00 5860.00 Dec. 2003 7691.00 6252.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception S&P Utilities Index* 26.26% -16.15% -37.48% Utilities Trust Series I 34.53% -9.36% -23.09% Utilities Trust Series II+++ 34.25% 4.41% 8.69% Utilities Trust Series III*** 11.20%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Utilities Trust Series I returned +34.53%, outperforming the +26.26% return of the S&P Utilities Index. ENVIRONMENT: Over the year, the electric utility and natural gas industries experienced a dramatic recovery from the devastation initiated by Enron. In 2002, in the wake of the Enron scandal, utilities symbolized what was wrong with American business. Credit rating agencies took a dim view of any company with energy trading or merchant generation exposure and viewed most utilities as having too much debt on their balance sheets. This initiated a downward spiral in mid-2002 that decimated both stocks and bonds of many utilities. In our view, the rating agencies and investors largely ignored the fact that Enron went bankrupt because of fraud, not because it was in the energy trading or electric generation business. Over the period, investors seemed to realize that most utilities were probably undervalued. Utilities began to improve their balance sheets by issuing equity to pay down debt. Banks restructured utility debt at lower rates and longer maturities. The result was strong performance in the first half of 2003, as beaten-down utility securities recovered. In the second half of 2003, however, Utility issues were largely left behind in a stock market rally that focused on more cyclical companies, particularly in Technology and Financial Services. In Telecommunications, performance was mixed. Earnings of regional Bell operating companies (RBOCs), continued to be hampered by a murky regulatory environment that, in our view, put them at a disadvantage relative to competition from cable companies. Convertible preferred bonds of an electric power generator also contributed strongly to performance. The firm's credit outlook, and thus its bond prices, strengthened over the period as the company improved its cash flow and negotiated more favorable terms on its debt. As natural gas prices appreciated over the winter of 2002-2003, portfolio performance was also helped by positions in what we viewed as some of the best-managed companies in the industry: an integrated gas production and distribution firm, a pipeline company and a distribution firm. Over the period, some of the largest detractors from performance were positions in several RBOCs. Relative performance was also hurt by our underweighted positions in some electric generation and natural gas companies that performed very well over the period. xxxiv REAL ESTATE SECURITIES TRUST INVESTMENT OBJECTIVE The portfolio invests, under normal market conditions, at & POLICIES: least 80% of net assets (plus any borrowings for investment purposes) in equity securities of real estate investment trusts ("REITS") and real estate companies. Equity securities include common stock, preferred stock and securities convertible into common stock. SUBADVISER: Deutsche Asset Management PORTFOLIO MANAGERS: Karen Knudson, John F. Robertson, John W. Vojtick and Mark D. Zeisloft INCEPTION DATE: April 30, 1987++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [REAL ESTATE SECURITIES TRUST PERFORMANCE GRAPH]
REAL ESTATE TRUST SERIES I WILSHIRE REAL ESTATE SECURITIES -------------------------- ------------------------------- Dec.1993 10000.00 10000.00 10178.00 10300.00 10762.00 10721.00 10366.00 10225.00 10319.00 10339.00 10460.00 10554.00 10304.00 10347.00 10093.00 10370.00 10214.00 10363.00 9960.00 10190.00 9478.00 9817.00 9066.00 9433.00 Dec.1994 9723.00 10164.00 9421.00 9836.00 9611.00 10144.00 9574.00 10203.00 9575.00 10129.00 9953.00 10464.00 10292.00 10647.00 10476.00 10818.00 10758.00 10950.00 10874.00 11151.00 10595.00 10806.00 10590.00 10918.00 Dec.1995 11195.00 11551.00 11310.00 11711.00 11400.00 11943.00 11329.00 12039.00 11348.00 12094.00 11666.00 12363.00 11870.00 12611.00 11826.00 12498.00 12325.00 13029.00 12543.00 13355.00 12979.00 13717.00 13453.00 14286.00 Dec.1996 15079.00 15811.00 15034.00 16037.00 15043.00 16046.00 15106.00 16101.00 14572.00 15581.00 15034.00 16045.00 15862.00 16841.00 16342.00 17395.00 16129.00 17266.00 17650.00 18969.00 17098.00 18163.00 17418.00 18528.00 Dec.1997 17854.00 18941.00 17614.00 18674.00 17347.00 18435.00 17819.00 18798.00 17171.00 18206.00 17080.00 18031.00 17019.00 17936.00 15848.00 16687.00 14282.00 14953.00 15141.00 15791.00 14868.00 15575.00 15090.00 15867.00 Dec.1998 14919.00 15640.00 14474.00 15301.00 14222.00 15180.00 14020.00 15098.00 15407.00 16708.00 15663.00 16990.00 15269.00 16701.00 14705.00 16062.00 14470.00 15821.00 13853.00 15107.00 13650.00 14826.00 13342.00 14593.00 Dec.1999 13725.00 15142.00 13342.00 15204.00 12937.00 14914.00 13778.00 15567.00 14494.00 16677.00 14716.00 16877.00 14793.00 17446.00 15757.00 19012.00 15624.00 18328.00 16056.00 18924.00 15613.00 18102.00 15901.00 18510.00 Dec.2000 17253.00 19796.00 17109.00 19994.00 16710.00 19578.00 16622.00 19594.00 17028.00 20060.00 17200.00 20622.00 18118.00 21737.00 17682.00 21303.00 18187.00 22046.00 17246.00 20739.00 16627.00 19963.00 17407.00 21257.00 Dec.2001 17797.00 21873.00 17797.00 21967.00 18141.00 22470.00 19276.00 23852.00 19368.00 24000.00 19782.00 24243.00 20184.00 24740.00 18954.00 23208.00 19120.00 23217.00 18422.00 22191.00 17405.00 21086.00 18067.00 22130.00 Dec.2002 18256.00 22453.00 17854.00 21795.00 18162.00 22115.00 18682.00 22677.00 19457.00 23632.00 20517.00 24988.00 20907.00 25476.00 22077.00 26953.00 22442.00 27242.00 23234.00 28160.00 23478.00 28588.00 24623.00 29826.00 Dec.2003 25403.00 30774.00
PERFORMANCE TABLE**
Average Annual Total Return Since++ Cumulative Total Return 1 5 10 Nov 25, 5 10 Since Periods Ended December 31, 2003 Year Year Year 2002 Year Year Inception Wilshire Real Estate Securities Index* 37.06% 14.50% 11.90% 35.58% 96.76% 207.74% Real Estate Securities Trust Series I 39.15% 11.23% 9.77% 36.86% 70.28% 154.03% Real Estate Securities Trust Series II+++ 38.93% 36.58% 43.17% Real Estate Securities Trust Series III*** 10.49%
++ Current subadviser assignment became effective November 25, 2002. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Real Estate Securities Trust Series I returned +39.15%, outperforming the +37.06% return of the Wilshire Real Estate Securities Index. ENVIRONMENT: During 2003, REITs performed very well, as investors continued to be attracted to the yield and the attractive relative valuations available in this asset class. Over the year, sector selection and stock selection, in particular, made a significant contribution to performance. From a sector perspective, mall, retail, hotel and storage outperformed the other property types during the quarter, while the apartment sector lagged. As such, our overweight positions in the mall and hotel areas over the year benefited performance as these were two of the best performing sectors on an annual basis. Meanwhile, our overweight position in apartments for much of the year detracted from performance. From a stock perspective, our individual holdings in retail, office, industrial and hotels performed particularly well relative to the benchmark. OUTLOOK: As the economy improves, we continue to believe that REITs will perform well. Though other asset classes performed particularly well during the fourth quarter, investor interest in REITs remains strong. Furthermore, concern about valuation is offset by the expectation of improving real estate fundamentals. xxxv SMALL CAP OPPORTUNITIES TRUST INVESTMENT OBJECTIVE & To achieve long-term capital appreciation by investing, POLICIES: under normal circumstances, at least 80% of its net assets, in smaller-capitalization companies that the managers believe are undervalued but have stable or improving earnings records and sound finances. Small-capitalization companies generally have a market capitalization below $1.5 billion at the time of purchase. SUBADVISER: Munder Capital Management PORTFOLIO MANAGERS: Robert E. Crosby, Julie R. Hollinshead and John P. Richardson INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [SMALL CAP OPPORTUNITIES TRUST PERFORMANCE GRAPH]
SMALL CAP OPPORTUNITIES TRUST RUSSEL 2000 VALUE INDEX ----------------------------- ----------------------- Apr. 2003 10000.00 10000.00 May 2003 10568.00 11021.00 Jun. 2003 10969.00 11207.00 Jul. 2003 11233.00 11766.00 Aug. 2003 11545.00 12214.00 Sep. 2003 11777.00 12073.00 Oct. 2003 12897.00 13057.00 Nov. 2003 13385.00 13559.00 Dec. 2003 14000.00 14050.00
PERFORMANCE TABLE**
Cumulative Total Return Since Periods Ended December 31, 2003 Inception Russell 2000 Value Index* 40.50% Small Cap Opportunities Trust Series I 40.00% Small Cap Opportunities Trust Series II 39.84% Small Cap Opportunities Trust Series III*** 17.85%
* All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: Since inception on May 5, 2003, the Small Cap Opportunities Trust Series I returned +40.00%, underperforming the +40.50% return of the Russell 2000 Value Index. ENVIRONMENT: The portfolio was helped by good stock selection, but was hurt by holding some cash as the stock market soared. We target to hold cash at a maximum of 5%. The strongest sectors in the portfolio were Consumer Discretionary, Financials and Health Care. We were underweight in Technology, causing the portfolio to underperform the best performing sector in the Index. Our focus is on companies with a high return on capital, but reasonable valuations. This focus will almost always lead to an underweight in the Technology and Utility sectors. The small cap market has performed extremely well. Further strong performance will be more dependent on good earnings' growth. We will continue to focus on stocks with the combination of the best fundamentals and valuation. xxxvi SMALL COMPANY VALUE TRUST INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing at least & POLICIES: 80% of its net assets in companies with market capitalizations that do not exceed the maximum market capitalization of any security in the Russell 2000 Index at the time of purchase. Portfolio securities are also selected by what T. Rowe Price believes to be undervalued companies that have good prospects for capital appreciation. SUBADVISER: T. Rowe Price Associates, Inc. PORTFOLIO MANAGERS: Preston G. Athey INCEPTION DATE: October 1, 1997++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [SMALL COMPANY VALUE TRUST PERFORMANCE GRAPH]
SMALL COMPANY VALUE TRUST SERIES I RUSSELL 2000 VALUE INDEX -------------------------------- ------------------------ Sep. 1997 10000.00 10000.00 9512.00 9728.00 9496.00 9835.00 Dec. 1997 9552.00 10168.00 9368.00 9984.00 10032.00 10587.00 10448.00 11017.00 10622.00 11071.00 10141.00 10679.00 Jun. 1998 9965.00 10620.00 9213.00 9788.00 7652.00 8255.00 8140.00 8722.00 8164.00 8981.00 8677.00 9224.00 Dec. 1998 9101.00 9514.00 9037.00 9298.00 8341.00 8663.00 8356.00 8591.00 8627.00 9375.00 8771.00 9663.00 Jun. 1999 9276.00 10013.00 9139.00 9775.00 8891.00 9419.00 8899.00 9230.00 8810.00 9046.00 9099.00 9093.00 Dec .1999 9828.00 9371.00 9660.00 9126.00 10541.00 9684.00 10125.00 9730.00 9746.00 9787.00 9240.00 9637.00 Jun. 2000 9898.00 9919.00 9673.00 10249.00 10234.00 10707.00 10106.00 10646.00 10058.00 10608.00 9408.00 10391.00 Dec. 2000 10412.00 11509.00 10533.00 11827.00 10420.00 11810.00 10067.00 11621.00 10610.00 12159.00 10876.00 12472.00 Jun. 2001 11044.00 12973.00 10892.00 12682.00 10611.00 12638.00 9622.00 11243.00 9976.00 11536.00 10426.00 12366.00 Dec. 2001 11092.00 13124.00 11333.00 13298.00 11502.00 13379.00 12314.00 14381.00 12796.00 14887.00 12263.00 14395.00 Jun. 2002 11907.00 14076.00 10314.00 11985.00 10362.00 11931.00 9797.00 11079.00 9966.00 11246.00 10532.00 12143.00 Dec. 2002 10435.00 11624.00 10063.00 11296.00 9796.00 10917.00 10144.00 11034.00 11083.00 12082.00 11750.00 13315.00 Jun. 2003 11864.00 13541.00 12336.00 14216.00 12703.00 14756.00 12500.00 14587.00 13306.00 15776.00 13656.00 16381.00 Dec. 2003 13948.00 16975.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since++ Since Periods Ended December 31, 2003 1 Year 5 Year Inception Apr 30, 2001 5 Year Inception Russell 2000 Value Index* 46.03% 12.28% 8.83% 13.33% 78.45% 69.75% Small Company Value Trust Series I 33.66% 8.91% 5.47% 10.78% 53.26% 39.48% Small Company Value Trust Series II+++ 33.56% 12.37% 25.28% Small Company Value Trust Series III*** 7.33%
++ Current subadvisor assignment became effective April 30, 2001. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Small Company Value Trust Series I returned +33.66%, underperforming the +46.03% return of the Russell 2000 Value Index. ENVIRONMENT: U.S. stocks bounced back from a three-year bear market in 2003, with several major indexes finishing the year at their highest levels in nearly two years. The rally gathered steam in mid-year on stronger corporate earnings growth and mounting evidence of a self-sustaining economic recovery. For the year, small-caps outperformed large, and growth, led by Technology stocks, outperformed value. Improving investor confidence about an economic recovery led to a sharp rebound in speculative/riskier small-cap stocks. The portfolio's underperformance was primarily due to our lower-than-benchmark risk posture, and stock selection in the Health Care and Industrials sectors. OUTLOOK: Small-cap stocks led the bull market in 2003 and we expect the positive environment for the asset class to continue into 2004. While we select stocks in an individual bottom-up fashion, there are a few industries -- Commercial Transportation, Commercial Services, Paper and Forest Products, and Construction Materials -- that appear undervalued and have our attention. We will likely remain underweight in Financials, in deference to our concern about rising interest rates. Regardless of the economic climate, we remain focused on our investment strategy -- investing in small, out-of-favor and undervalued companies. xxxvii SPECIAL VALUE TRUST
INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing at least & POLICIES: 80% of the value of its net assets in the common stock and other equity securities of smaller-capitalized U.S. companies believed to be undervalued. SUBADVISER: Salomon Brothers Asset Management PORTFOLIO MANAGERS: Peter J. Hable & Thomas B. Driscoll INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [SPECIAL VALUE TRUST PERFORMANCE GRAPH]
SPECIAL VALUE TRUST SERIES I RUSSELL 2000 VALUE INDEX ---------------------------- ------------------------ Apr. 2003 10000 10000 May. 2003 10416 11021 Jun. 2003 10664 11207 Jul. 2003 11184 11766 Aug. 2003 11568 12214 Sep. 2003 11344 12073 Oct. 2003 11831 13057 Nov. 2003 12151 13559 Dec. 2003 12656 14050
PERFORMANCE TABLE**
Cumulative Total Return Since Periods Ended December 31, 2003 Inception Russell 2000 Value Index* 40.50% Special Value Trust Series I 26.56% Special Value Trust Series II 26.40% Special Value Trust Series III*** 7.99%
* All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: Since inception on May 5, 2003, the Special Value Trust Series I returned +26.56%, underperforming the +40.50% return of the Russell 2000 Value Index. ENVIRONMENT: For the past year, the market for small-cap stocks strongly favored companies with the lowest share prices, smallest size and highest volatility. This has presented one of the most difficult periods for active small-cap managers, as it is very difficult and risky to have a large concentration in these speculative companies. To date, this situation has left us with good absolute returns, but behind the Russell 2000 Value Index. We expect that as the economy continues to recover, the market for small-cap stocks will broaden and we will see a move away from speculative trading. We have positioned the portfolio in sectors that we expect will benefit from economic recovery, with a particular focus on companies that will benefit from a return of corporate spending. As the economy has begun to recover, we have seen a resurgence of corporate capital expenditures. Consequently, we have a significant overweight in the Producer Durables ("Industrials"), Technology and Basic Materials sectors. With an increase in economic activity, we have anticipated a rise in interest rates and a steepening yield curve. Consequently, we have underweighted sectors that we believe will be hurt by rising interest rates, in particular the Financial sector. Our largest underweights within this sector are the savings and loans, and banks that focus on mortgage origination. We are also underweighted in Real Estate Investment Trusts (REITs). Finally, we are underweighted in Utilities because of high valuations, increasing interest rates and a difficult regulatory environment. OUTLOOK: Small-cap stocks have outperformed larger-caps for more than three years. This period of relative outperformance by small-cap stocks has narrowed the extreme valuation gap that has existed between small and large-cap companies since 1998. In our opinion, however, small-cap stocks are still priced at compelling levels relative to large-cap stocks. While the outperformance of small-cap stocks over the last few years may have eliminated the potential for dramatic gains relative to large cap companies, we believe small-cap valuations still imply further superior return potential. xxxviii MID CAP VALUE TRUST INVESTMENT OBJECTIVE To achieve capital appreciation by investing at least 80% of & POLICIES: the portfolio's net assets will consist of investments in mid-sized companies, with market capitalizations of approximately $500 million to $10 billion. SUBADVISER: Lord, Abbett & Co. LLC PORTFOLIO MANAGER: Eileen K. Banko, David G. Builder, Howard E. Hansen and Edward K. von der Linde INCEPTION DATE: April 30, 2001
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [MID CAP VALUE TRUST PERFORMANCE GRAPH]
MID CAP VALUE TRUST SERIES I RUSSELL MIDCAP VALUE INDEX ---------------------------- -------------------------- Apr. 2001 10000 10000 10240 10284 Jun. 2001 10096 10147 10047 10107 9920 9922 Sep. 2001 9248 8975 9656 9023 10152 9654 Dec. 2001 10472 10054 10152 10156 10456 10321 Mar. 2002 11049 10848 10953 10841 10936 10825 Jun. 2002 10383 10342 9388 9329 9588 9438 Sep. 2002 8851 8485 8995 8754 9757 9306 Dec. 2002 9413 9085 9012 8833 8659 8687 Mar. 2003 8652 8716 9215 9379 9811 10204 Jun. 2003 9980 10275 10189 10595 10680 10971 Sep. 2003 10471 10886 10866 11685 11189 12023 Dec. 2003 11800 12543
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Russell Midcap Value Index* 38.07% 8.87% 25.43% Mid Cap Value Trust Series I 25.36% 6.39% 18.00% Mid Cap Value Trust Series II+++ 25.14% 8.14% 16.32% Mid Cap Value Trust Series III*** 9.49%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Mid Cap Value Trust Series I returned +25.36%, underperforming the +38.07% return of the Russell Midcap Value Index. ENVIRONMENT: Stock selection in the Materials and Processing sector detracted from relative performance versus the Russell Midcap Value Index during 2003, as returns of certain holdings within the Chemical Manufacturing industry trailed the Index's sector holdings. Stock selection in the Producer Durables sector also hurt relative returns for the period. Certain holdings within the construction and agricultural machinery industry suffered as a result of a slumping industry, partially due to customers' postponed equipment purchases. Additionally, the portfolio's lack of exposure to the Technology sector hurt relative returns. We continue to search for the combination of catalysts and attractive valuations we believe necessary for us to meaningfully add to the sector. The portfolio's overweight in the strong performing Health Care sector, combined with good stock selection, aided relative returns. Certain retail drug holdings performed well in 2003, as investors gravitated to lower cost drug providers. Additionally, the portfolio's underweight in the Consumer Staples sector helped relative performance, as this sector did not keep pace with stronger performing sectors. OUTLOOK: We remain focused on bottom-up selection of attractively valued stocks whose issuing companies are likely to experience a set of catalysts that we believe can enhance profitability. We believe the roots of a recovery are in place and expect the economy to expand over the next year or longer. xxxix VALUE TRUST INVESTMENT OBJECTIVE: To achieve long-term capital appreciation. Under normal circumstances, the portfolio invests at least 65% of its total assets in equity securities. These primarily include common stocks, but may also include preferred stocks, convertible securities, rights, warrants, and ADR's. SUBADVISER: Van Kampen Investments PORTFOLIO MANAGERS: James A. Gilligan INCEPTION DATE: January 1, 1997++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [VALUE TRUST PERFORMANCE GRAPH]
VALUE TRUST SERIES I RUSSELL MIDCAP VALUE INDEX -------------------- -------------------------- Dec. 1996 10000 10000 10328 10314 10464 10489 10144 10170 10536 10427 11168 11041 Jun. 1997 11576 11451 12232 12302 12120 12158 12480 12912 11904 12519 12120 12942 Dec. 1997 12214 13437 11991 13176 12882 14056 13328 14780 13353 14697 13155 14354 Jun. 1998 12858 14400 12330 13670 10563 11748 10613 12433 11537 13238 12065 13703 Dec. 1998 12003 14120 11739 13791 11611 13488 11842 13680 13174 14976 13191 15039 Jun. 1999 13439 15210 12986 14830 12320 14317 11347 13593 11749 13994 11475 13737 Dec. 1999 11669 14104 10866 13261 10196 12706 11774 14246 12330 14303 12065 14549 Jun. 2000 11236 14007 11598 14334 12339 15213 12515 15359 13679 15651 13511 15447 Dec. 2000 14535 16810 15179 16749 14827 16679 14438 16217 15361 17109 15662 17595 Jun. 2001 15306 17361 15489 17291 15087 16975 13582 15356 13618 15437 14568 16518 Dec. 2001 15033 17201 14814 17374 14905 17656 15682 18559 15257 18547 15127 18519 Jun. 2002 13779 17692 12163 15960 12201 16146 10556 14515 11179 14977 12201 15920 Dec. 2002 11605 15541 11299 15111 10964 14860 10871 14910 11834 16043 13163 17455 Jun. 2003 13088 17577 13654 18124 14388 18767 14001 18621 14999 19988 15281 20567 Dec. 2003 16103 21457
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Since++ Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception May 1, 2003 Russell MidCap Value Index* 38.07% 8.73% 11.52% 51.97% 114.57% 33.73% Value Trust Series I 38.76% 6.05% 7.05% 34.15% 61.03% 35.53% Value Trust Series II+++ 38.60% 4.21% 8.29% 35.24%
++ Current subadvisor assignment became effective May 1, 2003. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Value Trust Series I returned +38.76%, outperforming the +38.07% return of the Russell MidCap Value Index. ENVIRONMENT: Stock selection and sector weighting had a positive impact on relative performance. The portfolio's largest sector weighting was Financials, which was underweight relative to the Russell MidCap Value Index. This position contributed positively to performance. The Consumer Discretionary sector, which was underweight relative to the Index, made the greatest positive contribution to performance, with stock selection being particularly beneficial. The overweight position in Industrials relative to the Index had the greatest negative impact on performance. The portfolio's Energy position had the most significant negative effect on relative performance due to both weak stock selection and an overweight allocation relative to the Index. OUTLOOK: Favorable fundamental conditions (low interest rates, a cheaper dollar and fiscal stimulus) support a rebound in economic growth to around a 5% rate in the second half of 2003. Capital markets have benefited handsomely from powerful monetary and fiscal stimuli. With better economic conditions expected for the next several quarters, however, U.S. Treasury yields have moved higher. The Federal Reserve may have little choice but to begin raising short-term rates during 2004. Even modest upward moves in interest rates would likely be felt throughout the bond and stock markets. We believe investors should be realistic in their return expectations and should pay attention to sound valuation disciplines in the quarters ahead. xl ALL CAP VALUE TRUST INVESTMENT OBJECTIVE & The portfolio will invest primarily in equity securities of POLICIES: U.S. and multinational companies that Lord Abbett & Co. LLC (Lord Abbett) believes are undervalued in all capitalization ranges. Under normal circumstances, the portfolio will invest at least 50% of its net assets in equity securities of large, seasoned companies with market capitalizations of at least $5 billion at the time of purchase. SUBADVISER: Lord, Abbett & Co. LLC PORTFOLIO MANAGER: David G. Builder, Robert P. Fetch, Daniel H. Frascarelli, Howard E. Hansen, Gerard E. Heffernan Jr. & Robert G. Morris INCEPTION DATE: April 30, 2001++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [ALL CAP VALUE TRUST PERFORMANCE GRAPH]
ALL CAP VALUE TRUST SERIES I RUSSELL 3000 VALUE INDEX ---------------------------- ------------------------ Apr.2001 10000.00 10000.00 10184.00 10227.00 Jun.2001 10008.00 10045.00 9928.00 10010.00 9496.00 9633.00 Sep.2001 8543.00 8928.00 8831.00 8872.00 9783.00 9396.00 Dec.2001 10090.00 9642.00 10041.00 9583.00 9433.00 9601.00 Mar.2002 10049.00 10075.00 9441.00 9783.00 9169.00 9802.00 Jun.2002 8329.00 9266.00 7304.00 8367.00 7304.00 8423.00 Sep.2002 6337.00 7509.00 7041.00 8034.00 8009.00 8549.00 Dec.2002 7281.00 8178.00 7329.00 7978.00 7265.00 7762.00 Mar.2003 7345.00 7779.00 8000.00 8468.00 8417.00 9037.00 Jun.2003 8529.00 9153.00 8737.00 9312.00 8962.00 9472.00 Sep.2003 8793.00 9378.00 9362.00 9966.00 9578.00 10121.00 Dec.2003 10075.00 10725.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Since++ Periods Ended December 31, 2003 1 Year Inception Inception May 1, 2003 Russell 3000 Value Index* 31.14% 2.66% 7.25% 26.65% All Cap Value Trust Series I 38.36% 0.28% 0.75% 25.67% All Cap Value Trust Series II+++ 38.16% 0.00% -0.01% 25.53% All Cap Value Trust Series III*** 11.03%
++ Current subadvisor assignment became effective May 1, 2003. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the All Cap Value Trust Series I returned +38.36%, outperforming the +31.14% return of the Russell 3000 Value Index. ENVIRONMENT: Stock selection within the Materials and Processing sector aided performance relative to the Russell 3000 Value Index. Several Basic Materials holdings benefited from strong third quarter earnings announcements. In addition, the portfolio's overweight in the Materials and Processing sector, compared to the Russell 3000 Value Index, further added to performance. Technology sector holdings also contributed positively for the eight-month period ended December 31, 2003. In particular, several Technology holdings have benefited from stronger-than-anticipated quarterly earnings announcements and reported new product developments. Stock selection within the Consumer Staples sector detracted from relative performance for the period. Specifically, a food processing company holding was hurt by an announced earnings revision during the fourth quarter. Within the Consumer Discretionary sector, a consumer product manufacturing company has been hurt by announcing weaker-than-anticipated sales in recent months. Additionally, stock selection within the Auto and Transportation sector also detracted from relative performance. OUTLOOK: Toward the end of 2003, we selectively added some undervalued Consumer Staples sector stocks to the portfolio's holdings. We continue to maintain a cyclical bias in the portfolio, focusing on Consumer Cyclical, Basic Materials and Technology stocks, which we believe should benefit from continued strengthening in the U.S. economy. Going forward, we will continue to implement the disciplined investment process and philosophy that has guided us for over 70 years. xli EQUITY INDEX TRUST INVESTMENT OBJECTIVE & To achieve the approximate aggregate total return of a broad POLICIES: U.S. domestic equity market index by attempting to track the performance of the S&P 500 Index. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Carson Jen and Narayan Ramani INCEPTION DATE: February 14, 1996
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [EQUITY INDEX TRUST PERFORMANCE GRAPH]
EQUITY INDEX TRUST SERIES I S&P 500 INDEX --------------------------- ------------- Jan .1996 10000 10000 9740 9779.41 9895 9873.29 10038 10018.4 10283 10276.9 Jun. 1996 10369 10319 9888 9859.84 10069 10068.9 10633 10634.7 10951 10926.1 11749 11755.4 Dec. 1996 11486 11525 12206 12240.7 12303 12339.9 11733 11826.5 12475 12532.6 13281 13302.1 Jun. 1997 13807 13895.3 14946 14998.7 14130 14164.7 14871 14940.5 14441 14441.5 15054 15110.2 Dec. 1997 15337 15370 15533 15540.7 16627 16661.4 17475 17514.7 17656 17690.9 17343 17386.8 Jun. 1998 18032 18093 17831 17900.3 15264 15312.3 16266 16293.2 17581 17618.5 18645 18686.3 Dec. 1998 19718 19763.1 20536 20589.6 19898 19949.6 20664 20747.8 21472 21551.4 20971 21042.6 Jun. 1999 22127 22210.4 21434 21517 21319 21410.5 20728 20823.6 22038 22141.3 22474 22591.5 Dec. 1999 23776 23922.1 22582 22720.3 22162 22290.2 24325 24470.8 23579 23734.5 23093 23247.5 Jun. 2000 23631 23820.5 23277 23448.2 24710 24904.6 23408 23589.9 23303 23490.1 21462 21638.1 Dec. 2000 21568 21743.9 22332 22515.4 20293 20462.4 19004 19166.2 20479 20655.6 20600 20793.9 Jun. 2001 20087 20287.8 19884 20088.2 18641 18830.7 17127 17310.1 17439 17640.2 18777 18993.4 Dec. 2001 18924 19159.8 18640 18880.2 18288 18516.2 18964 19212.6 17815 18047.7 17678 17914.7 Jun. 2002 16409 16638.5 15126 15341.5 15221 15442.3 13556 13764 14757 14975.5 15617 15857 Dec. 2002 14704 14925 14308 14534 14090 14316 14226 14455 15396 15646 16201 16470 Jun. 2003 16423 16681 16700 16975 17019 17306 16839 17122 17782 18092 17935 18251 Dec. 2003 18863 19207
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception S&P 500 Index 28.70% -0.57% 9.03% -2.81% 92.07% Equity Index Trust Series I 28.29% -0.88% 8.39% -4.34% 88.63%
** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Equity Index Trust Series I returned +28.29%, underperforming the +28.70% return of the S&P 500 Index. ENVIRONMENT: The U.S. economy started out strong in 2003. The federal stimulus package eliminated the double taxation of dividends. However, the continued geopolitical risks, high unemployment rate and decreased consumer confidence caused the market to continue to decline until mid-March. After the decisive victory in the Iraq war, all of the major indexes rallied strongly. But even with the rebound, consumer confidence and unemployment numbers remained mixed and deflation risks prompted the Federal Reserve to reduce rates from 1.25% to 1.0%. In the third quarter, the economy expanded at an 8.2% annualized rate and consumer spending increased at a 6.4% annualized rate. The labor market is also continuing its recovery with three straight months of job growth and an average of 82,000 new jobs created each month. For the year, Information Technology and Consumer Discretionary were the best performing sectors, up 46.6% and 36.1% respectively; Consumer Staples and Utilities were the worst, returning 9.2% and 6.9%. OUTLOOK: The economy is positioned to expand at a better pace than last year. Geopolitical risks have subsided; economic growth and consumer confidence have also increased. The major concerns in the near term are the size of the U.S. government deficit and the need for a pickup in employment for the economic recovery to be sustainable. xlii FUNDAMENTAL VALUE TRUST INVESTMENT OBJECTIVE & To achieve growth of capital by investing primarily in POLICIES: common stocks of U.S. companies with market capitalizations of at least $10 billion. SUBADVISER: Davis Advisors PORTFOLIO MANAGER: Christopher C. Davis and Kenneth C. Feinberg INCEPTION DATE: April 30, 2001
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [FUNDAMENTAL VALUE TRUST PERFORMANCE GRAPH]
FUNDAMENTAL VALUE TRUST SERIES I RUSSELL 1000 VALUE INDEX S&P 500 INDEX ----------------------- ------------------------ ------------- Apr. 2001 10000 10000 10000 10168 10225 10067 Jun. 2001 9816 9998 9822 9608 9977 9725 9168 9577 9117 Sep. 2001 8464 8903 8380 8536 8826 8540 9216 9339 9195 Dec. 2001 9384 9559 9276 9040 9486 9141 8952 9501 8964 Mar. 2002 9312 9950 9301 9144 9609 8737 9161 9657 8673 Jun. 2002 8472 9103 8055 8015 8257 7427 8119 8319 7476 Sep. 2002 7406 7394 6664 7759 7942 7250 8127 8442 7677 Dec. 2002 7863 8075 7225 7687 7880 7036 7543 7669 6930 Mar.2003 7479 7682 6997 8089 8358 7574 8619 8898 7973 Jun.2003 8779 9009 8075 8868 9144 8217 8956 9286 8378 Sep.2003 8948 9195 8289 9510 9758 8758 9695 9891 8835 Dec.2003 10209 10500 9299
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Russell 1000 Value Index* 30.03% 1.85% 5.00% S&P 500 Index* 28.70% -2.69% -7.01% Fundamental Value Trust Series I 29.83% 0.78% 2.09% Fundamental Value Trust Series II+++ 29.57% 5.47% 10.84% Fundamental Value Trust Series III*** 12.68%
+++ Series III inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Fundamental Value Trust Series I returned +29.83%, outperforming the +28.70% return of the S&P 500 Index. ENVIRONMENT: The portfolio performed well during the year, both on an absolute basis and relative to the S&P 500 Index. Contributors to relative performance over the year included our large holdings in Financial Services companies and their strong performance through the year, and the Capital Goods companies which the portfolio held -- as a group, they outperformed the Index by a substantial margin. On the negative side, weaker performance from the portfolio's Health Care companies, and cash holdings were a drag on relative performance. OUTLOOK: We have built a portfolio that is quite different in composition from the S&P 500 Index. Our investment strategy is to perform extensive research to buy companies with expanding earnings at value prices and hold them for the long term. After a strong year such as we enjoyed in 2003, we caution investors not to be overly optimistic. We are strong supporters of long-term buy-and-hold investing. xliii GROWTH & INCOME TRUST INVESTMENT OBJECTIVE & To achieve long-term growth of capital and income consistent POLICIES: with prudent investment risk by investing the portfolio's assets primarily in common stocks of U.S. issuers the manager believes are of high quality. The portfolio may also invest in securities convertible into, or that carry the right to buy, common stocks. The portfolio may also invest up to 20% of its assets in foreign securities. SUBADVISER: Wellington Management Company, LLP PORTFOLIO MANAGER: Matthew E. Megargel INCEPTION DATE: April 23, 1991
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [GROWTH & INCOME TRUST PERFORMANCE GRAPH]
S&P 500 INDEX TOTAL GROWTH & INCOME TRUST SERIES I ------------------- ------------------------------ Dec-1993 10000 10000 10335 10345 10056 10237 9619 9855 9744 9962 9902 10135 9658 9899 9977 10317 10384 10624 10133 10427 10365 10584 9985 10103 Dec-1994 10131 10284 10394 10293 10797 10711 11117 10963 11441 11315 11892 11681 12172 11924 12577 12265 12611 12370 13140 12751 13094 12556 13670 13067 Dec-1995 13923 13287 14402 13603 14540 13635 14679 13871 14895 14081 15279 14417 15342 14435 14659 13912 14970 14215 15811 15041 16245 15453 17478 16623 Dec-1996 17135 16321 18199 17205 18347 17400 17583 16726 18633 17678 19777 18703 20659 19775 22300 21310 21060 20165 22214 21218 21472 20484 22466 21436 Dec-1997 22852 21681 23106 21926 24772 23423 26040 24604 26303 24943 25851 24307 26901 25263 26615 25146 22767 21498 24226 22828 26196 24844 27783 26213 Dec-1998 29384 27429 30612 28299 29660 27690 30846 28906 32040 30132 31284 29342 33020 30929 31990 30110 31830 29959 30958 29082 32917 30748 33586 31058 Dec-1999 35564 32605 33778 31128 33140 30558 36381 33813 35286 32873 34563 32331 35413 32819 34860 32235 37025 34114 35070 32077 34923 31971 32171 29986 Dec-2000 32329 30283 33476 31110 30423 28680 28498 26824 30712 28710 30918 29169 30166 28181 29871 27899 28001 26169 25738 24439 26230 24945 28242 26744 Dec-2001 28490 26867 28074 26114 27533 25597 28568 26529 26837 24383 26638 24149 24741 22526 22811 20983 22962 20970 20466 18599 22267 20410 23579 21743 Dec-2002 22192 20330 21611 19722 21287 19371 21493 19545 23264 21068 24490 22060 24804 22437 25240 23086 25732 23487 25460 23062 26901 24278 27137 24372 Dec-2003 28557 25737
PERFORMANCE TABLE**
Cumulative Total Return Average Annual Total Return Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year 5 Year 10 Year Inception S&P 500 Index* 28.70% -0.57% 11.06% -2.81% 185.57% 284.32% Growth & Income Trust Series I 26.45% -1.27% 9.91% -6.18% 157.37% 244.57% Growth & Income Trust Series II+++ 26.41% -2.44% Growth & Income Trust Series III*** 7.82%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Growth and Income Trust Series I returned +26.45%, underperforming the +28.70% return of the S&P 500 Index. ENVIRONMENT: After three consecutive down years, equity markets posted strong double digit returns driven by an improved geopolitical environment, renewed economic growth, improving credit markets, and investor perception that deflationary risks had bottomed. This sharp directional change in the financial markets was reflected by market capitalization with nearly an inverse relationship between company size and returns, with small stocks performing the best and mega-caps returning the least. The portfolio lagged the Index while finishing nearly on par with its Morningstar peer group. All 10 S&P 500 Index sectors had positive returns, led by Technology stocks, which gained over 47%. Significant contributors to performance were stock selection coupled with an overweight to the Materials sector plus stock selection in Consumer Discretionary stocks. Stock selection in Information Technology and Financials detracted from performance. We correctly overweighted Technology but our overweight positions in higher-quality, larger-cap names hurt relative performance as they lagged the market. OUTLOOK: We continue to have a cyclical bias. Our view is that cyclical earnings growth will be sufficient near term to continue to attract investor attention and support relatively high valuation, with the exception of some technology industries. While we remain optimistic about the economy moving beyond the current stimulus-driven phase into a more durable recovery with higher employment and income, the rate of growth will decelerate especially later in the year. This transition may favor a gradual unwinding of our cyclical posture into more stable areas. Thus, we envision a maturing economic cycle that will likely provide lower absolute returns but favor high quality, big-cap stocks that can provide steadier earnings growth. xliv GREAT COMPANIES-AMERICA TRUST INVESTMENT OBJECTIVE & POLICIES: Seek to achieve long-term growth of capital by investing in common stocks of large, established, United States-based companies. The goal is to produce similar to or higher returns than that of the S&P 500 Index over the long-term but with lower volatility. SUBADVISER: Great Companies, L.L.C. PORTFOLIO MANAGERS: Jim Huguet, Jack Kenny, Gerry Bollman and Matt Stephani INCEPTION DATE: August 4, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [GREAT COMPANIES-AMERICA TRUST PERFORMANCE GRAPH]
GREAT COMPANIES AMERICA TRUST S&P 500 INDEX ----------------------------- ------------- Jul. 2003 10000 10000 Aug. 2003 10216 10195 Sep. 2003 10272 10087 Oct. 2003 10560 10658 Nov. 2003 10591 10752 Dec. 2003 11207 11315
PERFORMANCE TABLE**
Cumulative Total Return Periods Ended December 31, 2003 Since Inception S&P 500 Index* 13.15% Great Companies-America Trust Series II 12.07%
* All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the period since inception on August 4 through year-end 2003, the Great Companies-America Trust Series II returned +12.07%, underperforming the +13.15% return of the S&P 500 Index. ENVIRONMENT: For the first time in three years the markets closed up for the year. Unfortunately, many investors who became afraid of the market pulled out in 2002 and missed the significant market run-up in 2003. We believe there are several lessons to be learned from the last three years -- over the long term, markets improve, it is impossible to time the market, and whenever investor's emotions control their stock market activities, they will lose. We remain overweighted in the Healthcare and Industrial sectors. These sectors lend themselves to long-term protective barriers, and companies participating in these sectors can often generate returns on capital in excess of the cost of capital, which in turn drives stock performance. We continue to avoid in their entirety, the Energy, Materials, Utilities, and Telecommunication sectors as these sectors are commodity-type businesses and as a result, positive economic profits over the long term are doubtful. Our overweighting in Healthcare hurt us as the Healthcare sector underperformed the S&P 500 during the past quarter. Furthermore, underweighting Materials also hurt our performance as investors bid up shares of these companies as a result of the economic recovery becoming more prominent. Our overweighting in Industrials helped us during the quarter as these stocks outperformed the S&P 500 as well. OUTLOOK: The tax cuts of 2003 as well as low interest rates have created a backdrop that will support significant economic growth. Furthermore, productivity gains and an improving employment picture also support our bias towards economic growth. However growth expectations are now factored into the stock prices of many cyclical businesses, reducing the opportunity for such businesses to out perform as these stocks no longer trade at significant discounts to intrinsic value. We regularly review our stocks, their intrinsic values, and the discount to intrinsic value given the current market price. In reviewing the stocks included in our portfolio, many stocks have closed the gap between their stock price and their intrinsic values. However, we still see significant discounts to intrinsic value in the Healthcare and Industrial sectors. As a result, we have increased our positions in these sectors. xlv EQUITY-INCOME TRUST INVESTMENT OBJECTIVE & To achieve substantial dividend income and also long-term POLICIES: capital appreciation by investing, under normal circumstances, at least 80% of the portfolio's total assets in equity securities, with at least 65% in common stocks of well-established companies, paying above-average dividends. The portfolio seeks equity securities that appear to be temporarily undervalued by various measures and may be temporarily out of favor but have good prospects for capital appreciation and dividend growth. SUBADVISER: T. Rowe Price Associates, Inc. PORTFOLIO MANAGER: Brian C. Rogers INCEPTION DATE: February 19, 1993++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [EQUITY-INCOME TRUST PERFORMANCE GRAPH]
EQUITY-INCOME TRUST SERIES I RUSSELL 1000 VALUE INDEX ---------------------------- ------------------------ Dec. 1993 10000 10000 10195 10378 10354 10023 10044 9651 10079 9836 10159 9949 10017 9711 10159 10013 10613 10300 10550 9959 10364 10097 9892 9689 Dec. 1994 10079 9801 10017 10103 10675 10502 10906 10733 11068 11072 11384 11538 11745 11694 12097 12101 12223 12272 12259 12716 11835 12590 12313 13227 Dec. 1995 12467 13560 12765 13982 13018 14088 13171 14328 13488 14383 13769 14562 13468 14574 12993 14024 13391 14425 14060 14998 14205 15578 15049 16707 Dec. 1996 14942 16494 15369 17294 15766 17548 15417 16917 15828 17627 16593 18612 17234 19411 18257 20871 17751 20127 18616 21344 18122 20747 18819 21665 Dec. 1997 19381 22297 19246 21982 20190 23461 21146 24896 21023 25063 20678 24691 20618 25008 20023 24566 18047 20910 19035 22111 20202 23823 21023 24933 Dec. 1998 21166 25782 20618 25988 20452 25621 21011 26151 23336 28594 23143 28280 23785 29101 23259 28248 22540 27200 21731 26250 22437 27760 22078 27543 Dec. 1999 21886 27676 20794 26774 19100 24784 21231 27808 21408 27485 22407 27774 21247 26505 21511 26837 22569 28330 22701 28590 23833 29292 23583 28204 Dec. 2000 24729 29617 25037 29731 24685 28905 24009 27883 25048 29251 25892 29907 25379 29244 25478 29182 25048 28013 23260 26041 23244 25817 24618 27318 Dec. 2001 25048 27961 25015 27746 25396 27791 26207 29106 25491 28107 25766 28248 24131 26626 21997 24151 22238 24333 19931 21628 21153 23230 22634 24693 Dec. 2002 21721 23621 21085 23049 20362 22434 20413 22472 22205 24449 23602 26029 23817 26354 23943 26747 24391 27164 24158 26898 25377 28544 25502 28932 Dec. 2003 27276 30714
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since++ Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year Inception Oct 1, 1996 5 Year 10 Year Inception Russell 1000 Value Index* 30.03% 3.56% 11.88% 10.39% 19.13% 207.14% Equity-Income Trust Series I 25.57% 5.20% 10.56% 9.54% 28.87% 172.76% Equity-Income Trust Series II+++ 25.40% 4.68% 9.24% Equity-Income Trust Series III*** 9.81%
++ Current subadviser assignment became effective October 1, 1996. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Equity Income Trust Series I returned +25.57%, underperforming the +30.03% return of the Russell 1000 Value Index. ENVIRONMENT: U.S. stocks bounced back from a three-year bear market in 2003, with several major indexes finishing the year at their highest levels in nearly two years. Small- and mid-cap shares outperformed large-caps, but value edged out growth among large-caps. The portfolio posted a strong gain for the year but lagged the Russell 1000 Value Index. Stock selection in Consumer Discretionary, a significant overweight in Pharmaceuticals, and underweighting Financials hurt relative results. Overweighting the strong Industrials sector added the most to relative results. In Financials, our performance was hurt by underweighting market-sensitive companies such as brokers and diversified financials. However, we added value with stock selection among banks, particularly as merger activity in that sector picked up. Continued concern about generic competition and limited product pipelines weighed on a couple of large pharmaceuticals, which detracted from results. We believe these pharmaceutical leaders have good business models and attractive valuations relative to the market, as well as strong and safe dividend yields. Stock selection in Consumer Discretionary was negative. Telecommunications holdings also struggled throughout the year, hurting the portfolio's relative results. OUTLOOK: Overall, we remain optimistic about the prospects for our value approach to stock selection in the months ahead. Economic growth is likely to decelerate from the strong pace of the second half of 2003. We see value opportunities in Pharmaceuticals, Media and Industrial and Business Services stocks. Pharmaceuticals are beginning to trade at a discount to the overall market, but many have good business models and attractive and safe dividend yields. Media shares were strong performers throughout 2003, but we believe they will still enjoy good earnings growth in the year ahead. Within Industrials, defense-related stocks should continue to benefit from the ongoing war against terrorism while other Industrials trade at attractive valuations and should benefit from a continuing economic recovery. xlvi INCOME & VALUE TRUST INVESTMENT OBJECTIVE To achieve both the conservation of principal and long-term & POLICIES: growth of capital and income by investing in both equity and fixed income securities. SUBADVISER: Capital Guardian Trust Company PORTFOLIO MANAGERS: Terry Berkemeier, Christine Cronin, Michael R. Ericksen, David I. Fisher, Michael D. Locke, Karen A. Miller, James R. Mulally, Theodore R. Samuels, Eugene P. Stein and Alan J. Wilson INCEPTION DATE: August 3, 1989++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [INCOME & VALUE TRUST PERFORMANCE GRAPH]
60% S&P 500/40% CITIGROUP BROAD CITIGROUP BROAD INCOME & VALUE INVESTMENT GRADE INVESTMENT GRADE TRUST SERIES I S&P 500 INDEX BOND INDEX BOND INDEX* COMBINED INDEX -------------- ------------- ---------------- ---------------- -------------- Dec. 1993 10000.00 10000.00 10000.00 10000.00 10000.00 10255.00 10335.00 10135.00 10255.00 10260.00 10043.00 10056.00 9967.00 10021.00 10108.00 9719.00 9619.00 9720.00 9660.00 9795.00 9749.00 9744.00 9647.00 9707.00 9829.00 9822.00 9902.00 9646.00 9801.00 9857.00 9675.00 9658.00 9625.00 9647.00 9783.00 9921.00 9977.00 9808.00 9912.00 9972.00 10067.00 10384.00 9819.00 10159.00 10153.00 9876.00 10133.00 9678.00 9954.00 10002.00 9976.00 10365.00 9668.00 10086.00 10091.00 9767.00 9985.00 9642.00 9853.00 9911.00 Dec. 1994 9840.00 10131.00 9715.00 9970.00 10000.00 9876.00 10394.00 9916.00 10208.00 10126.00 10077.00 10797.00 10148.00 10541.00 10379.00 10278.00 11117.00 10207.00 10753.00 10575.00 10494.00 11441.00 10347.00 10999.00 10785.00 10772.00 11892.00 10758.00 11434.00 11088.00 10916.00 12172.00 10833.00 11628.00 11227.00 11146.00 12577.00 10812.00 11851.00 11453.00 11213.00 12611.00 10936.00 11924.00 11512.00 11405.00 13140.00 11039.00 12269.00 11737.00 11385.00 13094.00 11187.00 12309.00 11741.00 11654.00 13670.00 11361.00 12711.00 12020.00 Dec. 1995 11874.00 13923.00 11518.00 12922.00 12221.00 12065.00 14402.00 11596.00 13224.00 12386.00 12046.00 14540.00 11399.00 13211.00 12382.00 12056.00 14679.00 11317.00 13249.00 12420.00 12096.00 14895.00 11233.00 13327.00 12534.00 12179.00 15279.00 11226.00 13531.00 12624.00 12252.00 15342.00 11371.00 13634.00 12675.00 12054.00 14659.00 11402.00 13285.00 12440.00 12158.00 14970.00 11386.00 13446.00 12581.00 12535.00 15811.00 11584.00 13993.00 12947.00 12745.00 16245.00 11845.00 14348.00 13122.00 13173.00 17478.00 12040.00 15096.00 13572.00 Dec. 1996 13058.00 17135.00 11934.00 14865.00 13469.00 13267.00 18199.00 11981.00 15442.00 13687.00 13299.00 18347.00 11994.00 15524.00 13743.00 13028.00 17583.00 11873.00 15073.00 13482.00 13356.00 18633.00 12043.00 15699.00 13780.00 13882.00 19777.00 12156.00 16336.00 14267.00 14268.00 20659.00 12301.00 16851.00 14650.00 14899.00 22300.00 12634.00 17837.00 15233.00 14467.00 21060.00 12525.00 17180.00 14887.00 15063.00 22214.00 12709.00 17845.00 15371.00 14795.00 21472.00 12892.00 17590.00 15188.00 15029.00 22466.00 12953.00 18112.00 15379.00 Dec. 1997 15134.00 22852.00 13085.00 18373.00 15565.00 15321.00 23106.00 13254.00 18590.00 15769.00 15976.00 24772.00 13245.00 19389.00 16250.00 16466.00 26040.00 13296.00 20016.00 16606.00 16609.00 26303.00 13365.00 20178.00 16731.00 16478.00 25851.00 13494.00 20047.00 16657.00 16738.00 26901.00 13604.00 20602.00 16930.00 16673.00 26615.00 13633.00 20489.00 16858.00 15093.00 22767.00 13841.00 18837.00 15849.00 15668.00 24226.00 14168.00 19740.00 16296.00 16164.00 26196.00 14104.00 20667.00 16806.00 16804.00 27783.00 14182.00 21465.00 17348.00 Dec. 1998 17445.00 29384.00 14226.00 22234.00 17802.00 17811.00 30612.00 14331.00 22856.00 18085.00 17367.00 29660.00 14080.00 22269.00 17700.00 17876.00 30846.00 14161.00 22854.00 18058.00 18212.00 32040.00 14207.00 23417.00 18467.00 18007.00 31284.00 14077.00 23000.00 18139.00 18563.00 33020.00 14029.00 23734.00 18717.00 18344.00 31990.00 13973.00 23252.00 18337.00 18094.00 31830.00 13963.00 23175.00 18277.00 17713.00 30958.00 14130.00 22904.00 18063.00 18152.00 32917.00 14173.00 23802.00 18771.00 18299.00 33586.00 14171.00 24092.00 19000.00 Dec. 1999 18930.00 35564.00 14106.00 24899.00 19637.00 18328.00 33778.00 14067.00 24120.00 19022.00 18299.00 33140.00 14231.00 23958.00 18895.00 19501.00 36381.00 14416.00 25489.00 20102.00 19300.00 35286.00 14373.00 25000.00 19716.00 19300.00 34563.00 14360.00 24682.00 19466.00 19395.00 35413.00 14660.00 25252.00 19915.00 19395.00 34860.00 14794.00 25108.00 19802.00 20184.00 37025.00 15005.00 26188.00 20653.00 19845.00 35070.00 15107.00 25429.00 20054.00 19827.00 34923.00 15204.00 25429.00 20054.00 18943.00 32171.00 15450.00 24391.00 19236.00 Dec. 2000 19866.00 32329.00 15742.00 24647.00 19438.00 20618.00 33476.00 16002.00 25335.00 19980.00 19565.00 30423.00 16144.00 24038.00 18957.00 19039.00 28498.00 16228.00 23175.00 18277.00 20200.00 30712.00 16152.00 24211.00 19094.00 20477.00 30918.00 16257.00 24371.00 19220.00 20159.00 30166.00 16311.00 24046.00 18964.00 20179.00 29871.00 16688.00 24126.00 19027.00 19467.00 28001.00 16871.00 23327.00 18397.00 17902.00 25738.00 17079.00 22312.00 17597.00 18575.00 26230.00 17424.00 22748.00 17940.00 19743.00 28242.00 17183.00 23669.00 18666.00 Dec. 2001 20059.00 28490.00 17082.00 23737.00 18720.00 19803.00 28074.00 17217.00 23605.00 18616.00 19367.00 27533.00 17382.00 23423.00 18472.00 20159.00 28568.00 17095.00 23795.00 18766.00 19347.00 26837.00 17420.00 23110.00 18226.00 19145.00 26638.00 17568.00 23087.00 18207.00 17673.00 24741.00 17698.00 22168.00 17483.00 16463.00 22811.00 17909.00 21237.00 16748.00 16463.00 22962.00 18222.00 21468.00 16931.00 15253.00 20466.00 18512.00 20206.00 15935.00 16403.00 22267.00 18429.00 21237.00 16748.00 17674.00 23579.00 18425.00 21986.00 17339.00 Dec. 2002 16866.00 22192.00 18808.00 21393.00 16871.00 16623.00 21611.00 18823.00 21063.00 16611.00 16643.00 21287.00 19090.00 20994.00 16557.00 16825.00 21493.00 19073.00 21107.00 16646.00 17972.00 23264.00 19241.00 22226.00 17528.00 18941.00 24490.00 19597.00 23092.00 18212.00 19126.00 24804.00 19562.00 23254.00 18339.00 19270.00 25240.00 18901.00 23184.00 18284.00 19642.00 25732.00 19031.00 23518.00 18548.00 19540.00 25460.00 19530.00 23615.00 18624.00 20384.00 26901.00 19350.00 24330.00 19188.00 20610.00 27137.00 19406.00 24488.00 19313.00 Dec. 2003 21325.00 28557.00 19597.00 25358.00 20004.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since++ Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year Inception May 1, 1999 5 Year 10 Year Inception S&P 500 Index* 28.70% -0.57% 11.06% -2.44% -2.81% 185.57% Citigroup Broad Investment Grade Bond Index* 4.20% 6.62% 6.96% 7.14% 37.77% 95.97% 60% S&P 500/40% Citigroup Broad Investment Grade Bond Index 18.53% 2.67% 9.75% -2.44% 14.07% 153.58% Combined Index*++++ 18.53% 2.35% 7.18% 1.72% 12.34% 100.04% Income & Value Trust Series I 26.48% 4.11% 7.87% 3.44% 22.28% 113.25% Income & Value Trust Series II+++ 26.29% 3.87% 7.61%
++ Current sub-adviser assignment became effective May 1, 1999. ++++ The Combined Index represents 32.5% of the return of the Wilshire 5000 Index, 10% of the MSCI EAFE Index, 40% of the Lehman Brothers Aggregate Bond Index, 10% of the 90 Day T-Bill, and 7.5% of the Merrill Lynch High Yield Index through April 30, 1999, and 60% of the returns of the S&P 500 Index and 40% of the returns of the Citigroup Broad Investment Grade Bond Index from May 1, 1999 and thereafter. The Combined Index was prepared by the adviser using Ibboston Associates Software and Data. +++ Series II inception date: January 28, 2002. * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Income & Value Trust Series I returned +26.48%, outperforming both the +18.53% return of the blend of 60% S&P 500/40% Citigroup Broad Investment Grade Bond Index. ENVIRONMENT: The portfolio's overweight position in equities and underweight position in bonds throughout the year contributed to results while both equity and fixed-income portfolios outperformed their respective benchmarks. The equity portfolio benefited from good stock selection, especially within the Information Technology sector and the pharmaceuticals industry. Also adding value during the year was an underweight to the traditionally less economically sensitive names in the Consumer Staples sector, which underperformed the market. The fixed-income portfolio benefited from an overweight position in corporate bonds and emphasis on BBB-rated securities and high-yield issues and an underweight to mortgage-backed securities. OUTLOOK: The portfolio continues to be overweight stocks and underweight bonds. Equities have by and large moved straight up for nine months, and we are concerned that investor expectations for both stock prices and sustainable economic growth may be too high. While a pullback may be inevitable, over the coming year we believe equities should continue to be supported by economic growth and improving earnings. A weaker U.S. dollar should also help companies that generate a significant portion of profits from overseas. xlvii BALANCED TRUST INVESTMENT OBJECTIVE & To achieve current income and capital appreciation by POLICIES: investing in a balanced portfolio of common stocks, U.S. and foreign government obligations and a variety of corporate fixed income securities. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Rhonda Chang, Chris Hensen, Brett Hryb, John McIntyre, Mark Schmeer, Gary Stewart INCEPTION DATE: January 1, 1997++++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [BALANCED TRUST PERFORMANCE GRAPH]
LEHMAN BROTHERS LEHMAN BROTHERS IT BALANCED TRUST AGGREGATE BOND GOVERNMENT/CREDIT SERIES I S&P 500 INDEX INDEX BOND INDEX COMBINED INDEX -------------- ------------- --------------- ----------------- -------------- Dec. 1996 10000 10000 10000 10000 10000 10374 10625 10031 10039 10326 10362 10708 10056 10058 10381 10196 10268 9944 9989 10107 10515 10881 10094 10107 10485 10901 11543 10190 10190 10856 Jun. 1997 11239 12081 10311 10283 11163 11570 13021 10589 10492 11757 11208 12291 10499 10439 11380 11655 12965 10655 10561 11776 11563 12532 10809 10678 11665 11704 13112 10859 10701 11962 Dec. 1997 11852 13338 10968 10787 12125 12170 13486 11109 10928 12270 12532 14459 11100 10919 12707 12777 15199 11138 10954 13054 12891 15352 11196 11009 13154 12821 15088 11302 11090 13103 Jun. 1998 12982 15701 11398 11160 13425 12710 15534 11422 11200 13368 12019 13288 11608 11375 12510 12654 14139 11880 11661 13057 13066 15289 11817 11649 13554 13345 16216 11884 11648 14003 Dec. 1998 13458 17150 11920 11695 14428 13298 17867 12004 11759 14781 12972 17311 11794 11586 14422 13159 18004 11859 11673 14750 13427 18700 11897 11709 15059 13383 18259 11792 11619 14815 Jun. 1999 13598 19272 11755 11627 15202 13331 18671 11705 11617 14933 13360 18578 11700 11626 14892 13093 18069 11835 11734 14775 13293 19213 11879 11765 15269 13137 19603 11878 11779 15424 Dec. 1999 13235 20757 11821 11740 15841 12842 19715 11782 11696 15340 13392 19342 11924 11792 15216 14053 21234 12082 11915 16173 13142 20595 12047 11888 15866 12707 20173 12041 11907 15681 Jun. 2000 13352 20669 12291 12116 16023 13236 20347 12403 12208 15921 14206 21610 12583 12352 16590 13515 20469 12662 12465 16125 13111 20383 12746 12522 16114 11923 18777 12955 12692 15439 Dec. 2000 12000 18867 13196 12926 15598 12497 19537 13411 13138 16032 11636 17755 13527 13263 15216 10991 16631 13595 13365 14685 11666 17923 13538 13330 15354 11610 18043 13619 13405 15452 Jun. 2001 11324 17605 13671 13454 15293 11237 17432 13977 13734 15389 10729 16341 14138 13872 14996 10071 15021 14302 14074 14477 10412 15308 14601 14308 14767 10753 16482 14399 14165 15231 Dec. 2001 10777 16624 14307 14087 15249 10619 16382 14423 14160 15199 10444 16066 14563 14272 15127 10674 16670 14321 14055 15286 10229 15660 14599 14287 14970 10132 15544 14723 14430 14979 Jun. 2002 9612 14437 14851 14554 14511 9198 13311 15031 14725 14033 9328 13399 15285 14945 14197 8686 11943 15533 15212 13541 9149 12994 15461 15153 14106 9450 13759 15457 15139 14519 Dec. 2002 9231 12950 15776 15469 14242 9085 12611 15790 15468 14061 9011 12422 16008 15686 14053 9019 12542 15995 15702 14116 9391 13576 16128 15821 14757 9750 14291 16428 16139 15282 Jun. 2003 9816 14474 16395 16128 15365 9732 14729 15844 15689 15242 9840 15016 15949 15727 15440 9891 14857 16372 16125 15562 10066 15698 16219 15973 15931 10174 15836 16258 15995 16020 Dec. 2003 10549 16666 16425 16135 16523
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since++++ Since Periods Ended December 31, 2003 1 Year 5 Year Inception Apr 30, 2001 5 Year Inception S&P 500 Index* 28.70% -0.57% 7.57% -2.69% -2.81% 66.66% Lehman Brothers Aggregate Bond Index*+ 4.11% 6.62% 7.35% 7.52% 37.79% 64.25% Lehman Brothers IT Government/Credit Bond Index* 4.30% 6.65% 7.07% 7.42% 37.97% 61.35% Combined Index*++ 16.01% 2.75% 7.44% 2.79% 14.52% 65.23% Balanced Trust Series I 14.30% -4.75% 0.77% -3.70% -21.61% 5.49% Balanced Trust Series II+++ 14.18% -0.75% -1.44%
+ The Lehman Brothers Aggregate Bond Index was added to more accurately reflect the investment objective of the Balanced Trust. ++ The Combined Index represents 50% of the return of the S&P 500 Index and 50% of the return of the Lehman Brothers Aggregate Bond Index through December 31, 1999, and 60% of the return of the S&P 500 Index and 40% of the return of the Lehman Brothers Intermediate Term Government/Credit Bond Index from January 1, 2000 through April 30, 2001. As of May 2001, the index represents 50% of the return of the S&P 500 Index and 50% of the return of the Lehman Brothers Aggregate Bond Index. The Combined Index was prepared using Ibbotson Associates Software and Data. ++++ Current subadvisor assignment became effective April 30, 2001. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Balanced Trust Series I returned +14.30%, underperforming the +16.01% return of the Combined Index. ENVIRONMENT: Long-term interest rates increased by about 30 basis points in 2003. The bond market was extremely volatile for most of the year, with major swings occurring between March and September. Geopolitical risk dominated market activity early in the year with the onset of the war in Iraq. This overshadowed economic data that showed a weakening economy. Deflationary fears on the part of the Federal Reserve contributed to a major bond market rally in the second quarter, only to be reversed when these fears became less of a concern. Economic growth began to pick up steam in the latter part of the year, with third quarter U.S. gross domestic product (GDP) growth increasing by a surprising 8.2%. Job data, which had been depressed for the past few years, began to show strength, with gains over the last four months of the year. OUTLOOK: We are bullish on the U.S. equity markets in 2004 given our forecasts for economic growth and inflation (4% and 2% respectively). Our expectation for positive returns in 2004 is tempered by potential risks, the biggest being the future direction of interest rates. The Federal Reserve has stated that it will keep interest rates low for the foreseeable future, which should limit any dramatic increase in rates over the near term. However, the outlook is for interest rates to move higher in 2004 as the economy continues to achieve stronger growth. As the excess capacity in the U.S. economy is reduced, there will be pressure on the Fed to shift away from its accommodative policy and precipitate a move to higher rates and a flatter yield curve. xlviii GLOBAL ALLOCATION TRUST (FORMERLY TACTICAL ALLOCATION TRUST) INVESTMENT OBJECTIVE & The portfolio seeks to achieve total return by allocating POLICIES: its assets between equity and fixed income securities of issuers located within and outside the United States. The portfolio can invest a portion of its assets across domestic, international, and emerging market equities, domestic and international emerging market, and high yield bonds. SUBADVISER: UBS Global Asset Management PORTFOLIO MANAGERS: Thomas P. Madsen, John A. Penicook, Jr., Brian D. Singer & Neil Williams INCEPTION DATE: May 1, 2000 (manager, investment process & style changed as of May 1, 2003)
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [GLOBAL ALLOCATION TRUST PERFORMANCE GRAPH]
GLOBAL ALLOCATION TRUST GSMI GLOBAL SECURITIES SERIES I S&P 500 INDEX MARKETS INDEX ---------------- ------------- ---------------------- Apr.2000 10000.00 10000.00 10000.00 9840.00 9795.00 9793.00 Jun.2000 9968.00 10036.00 10150.00 9856.00 9879.00 9970.00 10321.00 10493.00 10315.00 Sept.2000 10080.00 9939.00 9986.00 10056.00 9897.00 9801.00 9680.00 9117.00 9339.00 Dec.2000 9680.00 9161.00 9570.00 10003.00 9487.00 9816.00 9091.00 8622.00 9265.00 Mar.2001 8502.00 8076.00 8821.00 9128.00 8704.00 9247.00 9178.00 8762.00 9238.00 Jun.2001 8946.00 8549.00 9079.00 8847.00 8465.00 9027.00 8283.00 7935.00 8822.00 Sep.2001 7602.00 7294.00 8271.00 7735.00 7434.00 8459.00 8316.00 8004.00 8791.00 Dec.2001 8385.00 8073.00 8852.00 8251.00 7955.00 8716.00 8085.00 7801.00 8684.00 Mar.2002 8377.00 8095.00 8934.00 7860.00 7604.00 8846.00 7801.00 7548.00 8868.00 Jun.2002 7242.00 7010.00 8553.00 6666.00 6464.00 8077.00 6708.00 6506.00 8156.00 Sep.2002 5964.00 5799.00 7635.00 6474.00 6310.00 7971.00 6850.00 6681.00 8282.00 Dec.2002 6439.00 6288.00 8120.00 6264.00 6123.00 7993.00 6172.00 6031.00 7939.00 Mar.2003 6222.00 6090.00 7945.00 6731.00 6592.00 8442.00 7016.00 6939.00 8861.00 Jun.2003 7117.00 7028.00 8965.00 7159.00 7152.00 9018.00 7260.00 7291.00 9188.00 Sep.2003 7369.00 7214.00 9327.00 7637.00 7622.00 9693.00 7755.00 7689.00 9830.00 Dec.2003 8140.00 8093.00 10270.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception S&P 500 Index* 28.70% -5.61% -19.07% Global Securities Market Index+* 26.48% 0.73% 2.70% Global Allocation Trust Series I 26.43% -5.45% -18.60% Global Allocation Trust Series II+++ 26.47% -0.90% -1.73%
+ The Global Securities Markets Index was added to more accurately reflect the investment objective of the Global Allocation Trust, and is an unmanaged index compiled by UBS Global Asset Management. It is currently constructed as follows: 40% Russell 3000 Index, 22% MSCI World ex-USA (free) Index, 21% Citigroup Broad Investment Grade (BIG) Bond Index, 9% Citigroup World Government Bond non-US Index, 3% Merrill Lynch High Yield Cash Pay Index, 3% MSCI Emerging Free Markets Index and 2% J.P. Morgan EMBI Global. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Global Allocation Trust Series I returned +26.43%, underperforming the +26.48% return of the Global Securities Market Index. ENVIRONMENT: Global capital markets are currently within a band of intrinsic or fair value at the end of 2003. Equities were out of favor through the first quarter, but a variety of developments led to a reversal. Military success in Iraq in April helped to encourage less risk averse investors, as risky assets soared through the remainder of the year. We generally expect small company and emerging stocks to perform well as equity markets recover, and 2003 was no exception. Even the riskier areas in fixed income -- US high yield and emerging markets debt -- followed suit. A nascent global economic recovery helped to make this appreciation in risky assets possible. Increases in real gross domestic product (GDP) were accompanied by high productivity growth and increased capital spending in both developed and emerging markets. OUTLOOK: In our view, expectations for global economic growth are reasonable, and although we believe that developed-country equity markets are within a range of fair value, opportunities exist in UK and emerging equities at the expense of Japan and the United States. Security selection opportunities within markets abound. We believe Japan also poses risks in fixed income, with more favorable opportunities available in Europe as well as global credit and mortgage-backed instruments. Further, we believe neither high yield nor emerging market debt offers an attractive risk/return relationship at present. We expect modest asset returns across the board in 2004. xlix HIGH YIELD TRUST INVESTMENT OBJECTIVE & To seek to achieve maximum current income by investing POLICIES: primarily in high yield bonds issued by U.S. and foreign corporations and foreign governments and their agencies and instrumentalities. This portfolio invests, under normal circumstances, at least 80% of its net assets in high yield bonds and related investments. SUBADVISER: Salomon Brothers Asset Management PORTFOLIO MANAGER: Peter J. Wilby INCEPTION DATE: January 1, 1997++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [HIGH YIELD TRUST PERFORMANCE GRAPH]
HIGH YIELD TRUST SERIES I CITIGROUP HIGH YIELD INDEX ------------------------- -------------------------- Dec. 1996 10000 10000 10058 10075 10144 10246 9904 10141 10144 10214 10392 10420 Jun. 1997 10576 10596 10944 10839 10912 10866 11136 11056 11032 11145 11138 11201 Dec. 1997 11268 11319 11443 11575 11575 11652 11725 11778 11780 11842 11722 11874 Jun. 1998 11747 11900 11864 11995 10922 11191 10981 11329 10831 11173 11589 11734 Dec. 1998 11581 11725 11698 11901 11654 11801 11869 11902 12326 12150 12012 11960 Jun. 1999 12056 11933 12083 11960 11993 11817 12047 11727 12074 11648 12370 11831 Dec. 1999 12508 11930 12449 11831 12556 11859 12411 11619 12373 11665 12080 11503 Jun. 2000 12343 11762 12266 11890 12393 11978 12119 11850 11641 11499 10967 11029 Dec. 2000 11387 11254 12150 12012 12188 12155 11680 11934 11363 11758 11460 11947 Jun. 2001 11112 11618 11112 11836 11210 11997 10404 11134 10491 11503 10818 11940 Dec. 2001 10763 11864 10763 11915 10546 11785 10546 12099 10673 12297 10566 12144 Jun. 2002 10070 11075 9585 10574 9692 10977 9633 10761 9538 10724 10058 11542 Dec. 2002 10023 11683 10259 12118 10411 12280 10648 12694 11106 13482 11268 13571 Jun. 2003 11493 13993 11268 13786 11442 13928 11755 14340 11943 14675 12105 14879 Dec. 2003 12473 15262
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception Citigroup High Yield Index* 30.62% 5.41% 6.23% 30.14% 52.62% High Yield Trust Series I 24.15% 1.49% 3.21% 7.70% 24.73% High Yield Trust Series II+++ 23.91% 7.36% 14.71% High Yield Trust Series III*** 8.03%
+++ Series II inception date: January 28, 2002 ++ Current subadviser assignment became effective May 1, 2003. * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the High Yield Trust Series I returned +24.15%, underperforming the +30.62% return of the Citigroup High Yield Market Index. ENVIRONMENT: Declining default rates, signs of improving corporate earnings, the end of major hostilities in Iraq and relatively favorable yields contributed to the strong demand for high-yield bonds earlier this year. These factors, coupled with expectations that the Fed would likely cut its short-term interest rate targets, all helped buoy high-yield securities through mid-June. In June, the Fed cut its target for the federal funds rate to a four-decade low of 1%. Treasury bond prices (which move opposite to yields) subsequently fell, particularly during July, amid stronger-than-anticipated economic data. Likewise, the high-yield market lost ground from the end of June into the middle of August as the yield on 10-year U.S. Treasuries soared from the low 3% range in mid-June to almost 4.5% by the middle of August. These rising yields, the subsequent outflows of cash from high-yield bond funds, and the abundant quantity of new issues on the market (which created supply pressures) caused the high-yield market to move lower. However, the market reversed course and rallied through the end of the year, sparking the return of mutual fund inflows, due to stronger-than-expected economic data and earnings that were in line with expectations. Airlines, Cable, Communications Towers, Energy, Technology, Telecommunications and Utilities were top-performing high-yield bond sectors. Airlines recovered as some companies avoided bankruptcy by renegotiating union contracts and experiencing better-than-expected traffic volumes following the resolution of the major hostilities in Iraq. The Cable sector outperformed many others. The Communications Towers sector benefited from better-than-expected earnings results, asset sales, new financing and increasing free cash flow. The Energy and Utilities sectors benefited as companies added additional financing through the use of senior debt and sold assets to reduce total debt. Technology moved higher due to strong earnings and improved liquidity. Wireless Telecommunications bonds outperformed due to better-than-expected operating results, debt-for-equity swaps, and debt refinancing. Wireline Telecommunications benefited as well. The most significant underperforming sectors included Health Care and Textiles. OUTLOOK: The yield on the Citigroup High Yield Market Index recently exceeded 7.7%. Based upon this rate, high-yield bonds categorically offer very competitive yields relative to their higher-rated brethren (although they also are subject to additional risks such as the increased risk of default because of the lower credit quality of the issues.) Recent economic data indicate that the economy is showing signs of improvement and the economy is expected to continue its recovery, which should result in better corporate earnings and lower default rates relative to last year. If equity markets continue to exhibit more stability in contrast to 2002, we believe the high-yield market should perform favorably over the long term. l STRATEGIC BOND TRUST INVESTMENT OBJECTIVE & To achieve a high level of total return consistent with POLICIES: preservation of capital by investing at least 80% of the portfolio's net assets in fixed income securities. These investments can be among five segments of the fixed income market: (i) United States government obligations, (ii) investment-grade domestic corporate fixed income securities, (iii) high yield, high risk corporate fixed income securities (commonly called "junk bonds"), (iv) mortgage-backed securities and (v) investment-grade and high yield international fixed income securities. SaBAM will determine the amount of assets to be allocated to each type of security based on its assessment of the maximum level of total return that can be achieved from investment in these securities without incurring undue risks to principal value. In pursuing its objective, the portfolio may invest without limitation in high yield, high risk securities. SUBADVISER: Salomon Brothers Asset Management Inc. PORTFOLIO MANAGERS: Roger M. Lavan, David J. Scott and Peter J. Wilby INCEPTION DATE: February 19, 1993
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [STRATEGIC BOND TRUST PERFORMANCE GRAPH]
LEHMAN BROTHERS AGGREGATE BOND STRATEGIC BOND TRUST INDEX -------------------- ------------------------------ Dec-93 10000 10000 10156 10135 9945 9959 9596 9713 9533 9635 9552 9634 9543 9613 9562 9804 9571 9816 9600 9672 9581 9663 9543 9642 Dec-94 9401 9708 9382 9900 9457 10136 9467 10198 9844 10341 10252 10741 10371 10819 10441 10795 10511 10926 10680 11032 10760 11175 10949 11343 Dec-95 11207 11502 11655 11578 11456 11376 11466 11297 11617 11233 11714 11211 11843 11361 11929 11392 12091 11372 12478 11570 12586 11827 12811 12029 Dec-96 12854 11918 12984 11955 13145 11984 12919 11851 13056 12029 13355 12143 13540 12288 13897 12620 13862 12512 14128 12698 13943 12882 14104 12941 Dec-97 14266 13072 14416 13239 14519 13228 14623 13273 14662 13342 14662 13469 14638 13584 14687 13612 13737 13834 14157 14158 14120 14083 14465 14163 Dec-98 14453 14206 14440 14306 14329 14056 14539 14133 14760 14179 14495 14054 14508 14009 14469 13950 14336 13943 14482 14105 14522 14157 14641 14156 Dec-99 14774 14088 14707 14041 14906 14211 15052 14399 14906 14357 14776 14350 15095 14648 15255 14781 15443 14996 15400 15090 15327 15190 15516 15439 Dec-00 15864 15726 16082 15982 16213 16121 16227 16202 16149 16134 16243 16231 16258 16292 16557 16657 16761 16849 16682 17044 17012 17401 16855 17161 Dec-01 16855 17051 17059 17189 17231 17356 17200 17067 17522 17399 17539 17546 17269 17699 17066 17913 17572 18216 17623 18511 17673 18426 18028 18420 Dec-02 18365 18802 18500 18819 18837 19078 19039 19063 19675 19221 20136 19579 20171 19540 19480 18883 19746 19008 20277 19511 20331 19330 20437 19376 Dec-03 20773 19574
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year Inception 5 Year 10 Year Inception Lehman Brothers Aggregate Bond Index* 4.11% 6.62% 6.95% 37.79% 95.74% Strategic Bond Trust Series I 13.11% 7.53% 7.58% 43.73% 107.73% Strategic Bond Trust Series II+++ 12.93% 10.54% 21.35% Strategic Bond Trust Series III*** 5.01%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Strategic Bond Trust Series I returned +13.11%, outperforming the +4.11% return of the Lehman Brothers Aggregate Bond Index. ENVIRONMENT: When the period began, concerns about a faltering economy and stock market volatility, coupled with expectations that interest rates would drop, triggered investor demand for fixed-income securities. Because bond prices typically move opposite to interest rate movements, many longer-term fixed-income securities appreciated over the first five months of the period. The Federal Reserve reduced its interest rate targets in June to their lowest levels in 45 years. Shortly after the rate reduction, signs suggesting the economic growth was stronger than expected generated concerns about inflation. This led investors to question whether the Fed's rate-cutting cycle had run its course, which contributed to a decline in bond prices. This was exacerbated by selling from investors holding mortgage-backed securities. Prices of Treasuries bounced back to an extent in September, although rate concerns resurfaced after third-quarter data indicated 8.2% annualized economic growth. For the fourth quarter, U.S. Treasury bonds generated slightly negative total returns. Shorter-term U.S. Treasuries and U.S. agency securities held up better. In contrast, U.S. high-yield and emerging markets bonds rallied. (Their performance tends to be more highly correlated to the credit strength of bond issuers than interest rate movements.) U.S. high-yield bonds benefited from a favorable reception to corporate earnings results from investors, continued relatively low default rates, and strong infusion of cash into the market. As of year-end, all markets represented by the J.P. Morgan Emerging Markets Bond Index Plus had generated positive total returns for 2003. The sovereign debt market benefited from strong cash inflows, signs of global economic growth and stable commodity prices, including metals, gold and oil -- important drivers of export revenues for many emerging market economies. OUTLOOK: The portfolio's allocation to higher-yielding bonds has provided it with favorable yields, which should benefit long-term returns if corporate earnings continue to improve and interest rates remain within recent ranges. li GLOBAL BOND TRUST INVESTMENT OBJECTIVE To achieve maximum total return consistent with preservation & POLICIES: of capital and prudent investment management by investing, under normal market conditions, at least 80% of the portfolio's net assets in fixed income securities. These fixed income securities include fixed income securities denominated in major foreign currencies and in U.S. dollars. The portfolio may also invest in baskets of foreign currencies (such as the euro), and the U.S. dollar. SUBADVISER: Pacific Investment Management Company PORTFOLIO MANAGERS: Michael R. Asay & Sudi Mariappa INCEPTION DATE: March 18, 1988++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [GLOBAL BOND TRUST PERFORMANCE GRAPH]
JP MORGAN GLOBAL UNHEDGED BOND INDEX GLOBAL BOND TRUST SERIES I ------------------------------ -------------------------- Dec.1993 10000 10000 10094 10223 9983 9857 9937 9627 9929 9554 9847 9297 9964 9297 10058 9425 10031 9358 10081 9380 10232 9516 10103 9418 Dec.1994 10126 9426 10331 9501 10597 9720 11137 9970 11314 10216 11629 10486 11701 10486 11756 10678 11430 10726 11687 10910 11801 11069 11933 11340 Dec.1995 12081 11611 11957 11642 11888 11539 11870 11555 11826 11667 11838 11764 11941 11922 12160 12036 12211 12202 12279 12474 12522 12842 12701 13158 Dec.1996 12612 13123 12297 12808 12212 12799 12119 12694 12051 12780 12335 12886 12476 13087 12430 13125 12415 13020 12691 13347 12960 13338 12804 13367 Dec.1997 12790 13511 12918 13694 13014 13751 12916 13780 13115 13861 13171 13872 13208 13682 13244 13682 13609 13470 14320 14169 14640 14349 14475 14202 Dec.1998 14747 14541 14626 14415 14138 13937 14173 13843 14169 13958 13919 13630 13687 13336 13988 13594 14024 13617 14226 13770 14209 13793 14040 13571 Dec.1999 14000 13571 13724 13196 13655 13173 14052 13489 13625 13073 13725 13097 14058 13483 13838 13302 13738 13229 13710 13205 13547 13013 13828 13230 Dec.2000 14326 13798 14315 13858 14320 13858 13920 13375 13865 13399 13824 13338 13700 13169 14047 13580 14573 14123 14677 14245 14809 14438 14590 14209 Dec.2001 14210 13870 13983 13714 14057 13859 13995 13859 14492 14354 14886 14693 15581 15333 15753 15405 16041 15683 16230 15865 16162 15817 16167 15901 Dec.2002 16963 16662 17185 17001 17432 17278 17476 17290 17685 17535 18453 18275 18163 17987 17595 17447 17507 17360 18496 18301 18400 18213 18692 18552 Dec.2003 19427 19220
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since++ Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year Inception May 1, 1999 5 Year 10 Year Inception JP Morgan Global Unhedged Bond Index* 14.53% 5.67% 6.87% 7.00% 31.73% 94.27% Global Bond Trust Series I 15.40% 5.75% 6.75% 7.10% 32.23% 92.20% Global Bond Trust Series II+++ 15.25% 18.90% 39.70% Global Bond Trust Series III*** 11.81%
++ Current subadviser assignment became effective May 1, 1999. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Global Bond Trust Series I returned +15.40%, outperforming the +14.53% return of the J.P. Morgan Global Unhedged Bond Index. ENVIRONMENT: Global bond yields drifted higher as economic growth gathered momentum, although terrorism fears remained in the foreground to temper any sell-off. While factors driving this cyclical recovery -- U.S. fiscal stimulus, accommodative monetary policy and the fading impact of SARS and the Iraqi conflict -- may be temporary, their impact has been significant. Euroland bonds outperformed Treasuries for the year. With China's economy booming, Japan remains in a cyclical up trend, fueled by rising capital expenditures and strong exports. The UK economy also continues to perform well, as global growth has lifted its manufacturing sector while consumers remain resilient. Only Euroland growth remains sluggish, although recent data indicates an improvement. The U.S. dollar remained under pressure with most foreign currencies posting double-digit gains. OUTLOOK: Prospects for global economic growth remain strong. Monetary policy across global economies will continue to support growth overall. Fiscal stimulus will be less potent but its economic spark will continue to lift growth. In 2004, U.S. growth is expected to be near 4%, Euroland near 1.5% and Japan near 2.5%. Beyond our cyclical horizon, imbalances threaten the sustainability of this recovery. In the U.S., fiscal stimulus could turn into fiscal drag in 2005 and the current account and fiscal deficits threaten growth. Structural reform and low-cost competition from Asia will challenge Euroland while demographics and banking sector woes loom over Japan. In this environment we will: target U.S. duration below benchmark to guard against higher long-term U.S. rates; position for a steeper UK yield curve; invest in mortgage-backed securities when attractive spreads compensate for duration extension risk; maintain an overweight to Euroland bonds, especially at the short end of the yield curve; retain high quality emerging market bonds; hold U.S. real return bonds, partly as a hedge against inflation risk; hold and selectively add municipal bonds to exploit yields close to taxable bonds; position portfolios with an underweight to the U.S. dollar to exploit dollar weakness arising from U.S. trade and budget deficits. lii DIVERSIFIED BOND TRUST INVESTMENT OBJECTIVE To achieve as high a total return as is consistent with the & POLICIES: conservation of capital by investing, under normal market conditions, at least 80% of the portfolio's net assets in fixed income securities, including up to 20% in non investment-grade fixed income securities. SUBADVISER: Capital Guardian Trust Company PORTFOLIO MANAGERS: James R. Mulally, Michael D. Locke & Christine C. Cronin INCEPTION DATE: August 3, 1989++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [DIVERSIFIED BOND TRUST PERFORMANCE GRAPH]
DIVERSIFIED BOND TRUST CITIGROUP BROAD INVESTMENT SERIES I GRADE BOND INDEX COMBINED INDEX ---------------------- -------------------------- -------------- Dec. 1993 10000 10000 10000 10178 10135 10179 10000 9967 10050 9751 9720 9821 9730 9647 9828 9759 9646 9853 9683 9625 9805 9872 9808 9974 9948 9819 10090 9815 9678 9971 9872 9668 10026 9749 9642 9928 Dec. 1994 9815 9715 10003 9919 9916 10138 10118 10148 10349 10242 10207 10480 10398 10347 10639 10688 10758 10924 10799 10833 11036 10928 10812 11163 11008 10936 11245 11148 11039 11409 11178 11187 11458 11378 11361 11670 Dec. 1995 11588 11518 11826 11709 11596 11945 11639 11399 11897 11628 11317 11906 11647 11233 11961 11690 11226 12016 11775 11371 12093 11680 11402 11974 11734 11386 12056 12000 11584 12319 12192 11845 12497 12502 12040 12808 Dec. 1996 12405 11934 12725 12544 11981 12873 12576 11994 12911 12405 11873 12742 12627 12043 12967 12897 12156 13269 13132 12301 13521 13531 12634 13937 13320 12525 13737 13637 12709 14054 13614 12892 14023 13731 12953 14155 Dec. 1997 13824 13085 14301 13976 13254 14456 14235 13245 14722 14469 13296 14934 14564 13365 15030 14577 13494 15035 14731 13604 15225 14731 13633 15198 14201 13841 14771 14537 14168 15130 14744 14104 15410 15015 14182 15701 Dec. 1998 15299 14226 15971 15493 14331 16158 15222 14080 15895 15455 14161 16109 15580 14207 16336 15367 14077 16186 15310 14029 16131 15238 13973 16066 15224 13963 16055 15395 14130 16248 15422 14173 16297 15450 14171 16295 Dec. 1999 15407 14106 16220 15307 14067 16175 15435 14231 16364 15577 14416 16577 15504 14373 16527 15472 14360 16512 15844 14660 16857 15990 14794 17011 16217 15005 17254 16347 15107 17371 16412 15204 17482 16639 15450 17765 Dec. 2000 16997 15742 18101 17304 16002 18400 17450 16144 18564 17483 16228 18660 17376 16152 18573 17461 16257 18693 17461 16311 18755 17840 16688 19188 17995 16871 19399 18168 17079 19638 18530 17424 20035 18357 17183 19758 Dec. 2001 18203 17082 19641 18289 17217 19797 18375 17382 19987 18134 17095 19657 18437 17420 20030 18546 17568 20201 18419 17698 20350 18456 17909 20592 18907 18222 20953 19069 18512 21286 19016 18429 21190 19177 18425 21186 Dec. 2002 19592 18808 21626 19627 18823 21644 19896 19090 21951 19932 19073 21931 20133 19241 22124 20491 19597 22534 20473 19562 22493 19793 18901 21733 19906 19031 21883 20433 19530 22456 20225 19350 22250 20300 19406 22314 Dec. 2003 20494 19597 22528
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since ++ Since Periods Ending December 31, 2003 1 Year 5 Year 10 Year Inception May 1, 1999 5 Year 10 Year Inception Citigroup Broad Investment Grade Bond Index* 4.20% 6.62% 6.96% 7.14% 37.77% 95.97% Combined Index*++++ 4.20% 7.13% 8.46% 7.14% 41.10% 125.28% Diversified Bond Trust Series I 4.60% 6.02% 7.44% 6.05% 33.93% 104.94% Diversified Bond Trust Series II+++ 4.59% 6.11% 12.13% Diversified Bond Trust Series III*** 3.04%
++ Current subadviser assignment became effective May 1, 1999. ++++ The Combined Index represents 20% of the return of the Wilshire 5000 Index, 5% of the MSCI EAFE Index, 50% of the Lehman Brothers Aggregate Bond Index, 25% of the 90 Day T-Bill through April 30, 1999, and 100% of the return of the Citigroup Broad Investment Grade Bond Index from May 1, 1999 and thereafter. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Diversified Bond Trust Series I returned +4.60%, outperforming the +4.20% return of the Citigroup Broad Investment Grade Bond Index. ENVIRONMENT: The portfolio benefited from an overweight allocation to BBB credits and high yield bonds. These issues did particularly well during 2003 and accounted for nearly half of the excess return for the year. Earlier in the year, the Trust reduced its exposure to mortgage-backed securities in anticipation of a possible interest rate hike. This move continues to aid portfolio returns. Within corporate bonds, the portfolio's overweight allocation to Wireless, Media, Health Care, and Hotels, Restaurants & Leisure were beneficial. OUTLOOK: Preserving capital is an important theme for the portfolio. Since we think interest rates are likely to rise, we anticipate becoming more cautious on duration. The portfolio is underweight sectors of the bond market that could come under pressure in a rising interest rate environment, namely mortgage-backed securities. Our second theme is that bond selection will be key. Corporate bond spreads narrowed appreciably in 2003 and are narrow by historical standards. We believe it will be imperative to own individual bonds that have positive credit momentum and are undervalued relative to their peers. liii INVESTMENT QUALITY BOND TRUST INVESTMENT OBJECTIVE & To achieve a high level of current income consistent with POLICIES: the maintenance of principal and liquidity by investing, under normal market conditions, at least 80% of the portfolio's net assets in investment grade bonds. The portfolio will invest primarily in corporate bonds and U.S. government bonds with intermediate to longer-term maturities. SUBADVISER: Wellington Management Company, LLP PORTFOLIO MANAGER: Thomas L. Pappas INCEPTION DATE: June 18, 1985
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [INVESTMENT QUALITY BOND TRUST PERFORMANCE GRAPH]
INVESTMENT QUALITY BOND LEHMAN BROTHERS AGGREGATE TRUST SERIES I BOND INDEX COMBINED INDEX ----------------------- ------------------------- -------------- Dec-93 10000.00 10000.00 10000.00 10132.00 10135.00 10165.00 9885.00 9959.00 9937.00 9596.00 9713.00 9673.00 9493.00 9635.00 9588.00 9484.00 9634.00 9564.00 9467.00 9613.00 9541.00 9640.00 9804.00 9750.00 9657.00 9816.00 9757.00 9511.00 9672.00 9598.00 9485.00 9663.00 9583.00 9459.00 9642.00 9567.00 Dec-94 9537.00 9708.00 9636.00 9711.00 9900.00 9828.00 9927.00 10136.00 10075.00 9997.00 10198.00 10149.00 10148.00 10341.00 10301.00 10564.00 10741.00 10751.00 10647.00 10819.00 10840.00 10610.00 10795.00 10796.00 10739.00 10926.00 10946.00 10850.00 11032.00 11063.00 11034.00 11175.00 11219.00 11210.00 11343.00 11413.00 Dec-95 11395.00 11502.00 11589.00 11451.00 11578.00 11662.00 11219.00 11376.00 11404.00 11127.00 11297.00 11309.00 11032.00 11233.00 11226.00 11002.00 11211.00 11207.00 11139.00 11361.00 11362.00 11168.00 11392.00 11387.00 11148.00 11372.00 11356.00 11354.00 11570.00 11570.00 11580.00 11827.00 11855.00 11806.00 12029.00 12085.00 Dec-96 11688.00 11918.00 11940.00 11717.00 11955.00 11954.00 11747.00 11984.00 11988.00 11599.00 11851.00 11831.00 11790.00 12029.00 12006.00 11896.00 12143.00 12126.00 12054.00 12288.00 12280.00 12435.00 12620.00 12679.00 12287.00 12512.00 12522.00 12489.00 12698.00 12725.00 12637.00 12882.00 12916.00 12701.00 12941.00 12985.00 Dec-97 12828.00 13072.00 13122.00 13049.00 13239.00 13297.00 13029.00 13228.00 13277.00 13070.00 13273.00 13321.00 13129.00 13342.00 13393.00 13263.00 13469.00 13542.00 13364.00 13584.00 13669.00 13397.00 13612.00 13673.00 13510.00 13834.00 13884.00 13902.00 14158.00 14296.00 13789.00 14083.00 14162.00 13890.00 14163.00 14298.00 Dec-98 13945.00 14206.00 14335.00 14046.00 14306.00 14448.00 13721.00 14056.00 14104.00 13834.00 14133.00 14182.00 13896.00 14179.00 14219.00 13719.00 14054.00 14061.00 13660.00 14009.00 14010.00 13602.00 13950.00 13961.00 13554.00 13943.00 13945.00 13684.00 14105.00 14077.00 13696.00 14157.00 14121.00 13732.00 14156.00 14119.00 Dec-99 13696.00 14088.00 14036.00 13673.00 14041.00 14021.00 13826.00 14211.00 14186.00 13992.00 14399.00 14370.00 13912.00 14357.00 14287.00 13836.00 14350.00 14266.00 14117.00 14648.00 14572.00 14244.00 14781.00 14731.00 14435.00 14996.00 14936.00 14498.00 15090.00 14996.00 14536.00 15190.00 15075.00 14702.00 15439.00 15322.00 Dec-00 14982.00 15726.00 15624.00 15276.00 15982.00 15918.00 15467.00 16121.00 16079.00 15518.00 16202.00 16156.00 15402.00 16134.00 16044.00 15509.00 16231.00 16144.00 15523.00 16292.00 16221.00 15918.00 16657.00 16627.00 16094.00 16849.00 16841.00 16094.00 17044.00 16974.00 16474.00 17401.00 17404.00 16216.00 17161.00 17134.00 Dec-01 16079.00 17051.00 17000.00 16214.00 17189.00 17128.00 16364.00 17356.00 17272.00 16146.00 17067.00 16925.00 16458.00 17399.00 17245.00 16573.00 17546.00 17410.00 16601.00 17699.00 17546.00 16659.00 17913.00 17734.00 17017.00 18216.00 18140.00 17332.00 18511.00 18524.00 17117.00 18426.00 18343.00 17245.00 18420.00 18383.00 Dec-02 17675.00 18802.00 18878.00 17762.00 18819.00 18885.00 18078.00 19078.00 19225.00 18063.00 19063.00 19204.00 18352.00 19221.00 19427.00 18850.00 19579.00 19986.00 18850.00 19540.00 19908.00 18096.00 18883.00 19072.00 18231.00 19008.00 19200.00 18804.00 19511.00 19814.00 18653.00 19330.00 19567.00 18728.00 19376.00 19623.00 Dec-03 18976.00 19574.00 19817.00
PERFORMANCE TABLE**
Cumulative Total Return Average Annual Total Return Since Periods Ended December 31, 2003 1 Year 5 Year 10 Year 5 Year 10 Year Inception Lehman Brothers Aggregate Bond Index* 4.11% 6.62% 6.95% 37.79% 95.74% Combined Index*+ 5.00% 6.69% 7.08% 38.25% 98.17% Investment Quality Bond Trust Series I 7.32% 6.35% 6.62% 36.06% 89.76% Investment Quality Bond Trust Series II+++ 7.24% 16.91% Investment Quality Bond Trust Series III*** 4.14%
+ The Combined Index is comprised of 50% of the return of the Lehman Brothers Government Bond Index and 50% of the return of the Lehman Brothers Credit Bond Index. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Investment Quality Bond Trust Series I returned +7.32%, outperforming the +5.00% return of the Combined Index (50%/50% Lehman Brothers Government/Credit Index), and underperforming the +7.98% return of the Morningstar Long Term Bond Peer Group. ENVIRONMENT: Higher yielding sectors of the investment grade bond market, such as corporate bonds and mortgage-backed securities, outperformed U.S. Treasuries. The Federal Reserve maintained the federal funds rate at 1% since June and has reiterated that rates would remain low for a "considerable period." Long interest rates rose significantly in July as signs of a second-half recovery grew. The yield curve steepened and Treasury bond prices declined. We shifted our duration posture from slightly below neutral to neutral toward the end of the year. The greatest contributors to performance were derived from our overweight position in investment grade credits, individual security selection within those credits, and exposure to non-investment grade issues. The greatest detractor was duration and yield curve positioning. OUTLOOK: We believe a broad based recovery is unfolding as evidenced by economic data that has exceeded investor expectations. Monetary easing and a weaker dollar are providing a level of fiscal stimulus that should support further growth. The risks from a ballooning fiscal deficit and geopolitical activity remain. Although the economic cycle points to higher rates ahead, investors may defer their fears of higher rates and continue to purchase bonds in the near term. We have adjusted our duration bias from slightly below neutral to neutral and positioned the portfolio to seek a yield advantage by maintaining overweight positions in corporate bonds and mortgages while being underweight Treasuries. liv TOTAL RETURN TRUST INVESTMENT OBJECTIVE & To achieve maximum total return, consistent with POLICIES: preservation of capital and prudent investment management by investing, under normal market conditions, at least 65% of the portfolio's assets in a diversified portfolio of fixed income securities of varying maturities. The average portfolio duration will normally vary within a 3- to 6-year time frame based on PIMCO's forecast for interest rates. SUBADVISER: Pacific Investment Management Company PORTFOLIO MANAGERS: William H. Gross INCEPTION DATE: May 1, 1999
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [TOTAL RETURN TRUST PERFORMANCE GRAPH]
LEHMAN BROTHERS AGGREGATE BOND TOTAL RETURN TRUST SERIES I INDEX --------------------------- ------------------------------ Apr. 1999 10000 10000 9928 9912 9896 9880 9840 9839 Aug. 1999 9824 9834 9928 9948 9936 9985 9968 9984 Dec. 1999 9896 9936 9776 9903 9849 10023 10049 10155 Apr. 2000 10032 10126 10024 10121 10213 10331 10303 10425 Aug. 2000 10467 10577 10475 10643 10565 10713 10778 10889 Dec. 2000 10934 11091 11049 11272 11147 11370 11196 11427 Apr. 2001 11107 11379 11123 11447 11140 11490 11506 11748 Aug. 2001 11634 11883 11856 12021 12078 12272 11908 12103 Dec. 2001 11884 12026 12012 12123 12149 12241 11961 12038 Apr. 2002 12167 12271 12239 12375 12284 12483 12338 12634 Aug. 2002 12564 12848 12681 13056 12726 12996 12771 12992 Dec. 2002 13015 13261 13087 13273 13276 13456 13286 13445 Apr. 2003 13428 13557 13649 13809 13640 13781 13111 13318 Aug. 2003 13235 13406 13582 13762 13485 13634 13525 13666 Dec. 2003 13668 13805
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Lehman Brothers Aggregate Bond Index* 4.11% 7.15% 38.05% Total Return Trust Series I 5.02% 6.92% 36.68% Total Return Trust Series II+++ 4.87% 6.92% 13.79% Total Return Trust Series III*** 3.35%
+++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Total Return Trust Series I returned +5.02%, outperforming the +4.11% return of the Lehman Brothers Aggregate Bond Index. ENVIRONMENT: While Treasury yields rose only 0.2 to 0.5 percentage points for the year, the markets were far from calm. For instance, yields moved lower through the first half of the year as perceived deflation risks grew. The Federal Reserve cut the federal funds rate to 1 percent in June and the 10-year Treasury yield plunged to a 45-year low near 3 percent. Rates then reversed course dramatically, jumping more than 1.3 percentage points in July, the worst month in the U.S. government bond market in more than 23 years. This reversal was partly prompted by investors' growing confidence that growth would accelerate. Economic performance in the second half of the year met investors' expectations, highlighted by 8.2 percent annualized growth in the third quarter, the fastest pace in almost two decades. The 10-year Treasury yield finished the year at 4.25 percent, up 0.43 percentage points for the full period. OUTLOOK: The recovery in the global economy should be sustained in 2004, with China joining the U.S. as an engine of growth. U.S. interest rates could rise up to 1.0 percentage points for short maturities but less for longer maturities as markets anticipate tightening by the Fed by late in 2004 or early 2005. The bond market in 2004 will be challenging, with upward pressure on rates and full valuations in Treasuries, most corporates and mortgages. This environment dictates an underweight to mortgages and corporates, below-index duration and focus on intermediate maturities. Real return, municipal, short maturity Eurozone and emerging market bonds remain compelling. TIPs hedge against secular inflation risk. Munis provide yields near Treasuries and defensive characteristics in a rising rate environment. Short-term Euroland exposure offers yields that do not reflect the low probability of central bank tightening in 2004. Modest exposure to the euro and yen can add value as concern about the U.S. trade deficit keeps the dollar weak. Finally, high yielding emerging market bonds are poised for another good year as fundamentals continue to improve. lv REAL RETURN BOND TRUST INVESTMENT OBJECTIVE & To seek to achieve maximum real return, consistent with POLICIES: preservation of real capital and prudent investment management. The portfolio seeks to achieve its objective by investing under normal circumstances, at least 80% of its net assets in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations. SUBADVISER: Pacific Investment Management Company PORTFOLIO MANAGERS: John B. Brynjolfsson INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [REAL RETURN BOND TRUST PERFORMANCE GRAPH]
LEHMAN BROTHERS GLOBAL REAL U.S. REAL RETURN BOND TRUST SERIES I TIPS INDEX ------------------------------- -------------------------------- Apr. 2003 10000 10000 May 2003 10424 10474 Jun. 2003 10336 10367 Jul. 2003 9817 9888 Aug. 2003 9984 10065 Sep. 2003 10417 10398 Oct. 2003 10393 10455 Nov. 2003 10449 10461 Dec. 2003 10488 10567
PERFORMANCE TABLE**
Cumulative Total Return Since Periods Ended December 31, 2003 Inception Lehman Brothers Global Real U.S. TIPS Index* 5.67% Real Return Bond Trust Series I 4.88% Real Return Bond Trust Series II 4.80% Real Return Bond Trust Series III*** 5.64%
* All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: Since inception, May 5, 2003, the Real Return Bond Trust Series I returned +4.88%, underperforming the +5.67% return of the Lehman Global Real U.S. TIPs Index. ENVIRONMENT: Most bonds posted positive returns in the fourth quarter, capping a year in which fixed income assets gained ground despite volatile interest rates. Interest rates fell in the first half of the year, as markets were anxious about deflation, but reversed course in the second half as the mood swung toward expectations of faster growth. Inflation was modest even in the face of surging commodity prices and a falling U.S. dollar; low inflation helped to ease the rise in interest rates. Higher yielding corporate and emerging market assets were the best performing, as demand for riskier, higher yielding assets surged. Real return bonds outpaced Treasuries for the year, as these high quality assets demonstrated their defensive characteristics as interest rates moved higher. OUTLOOK: The recovery in the global economy will be sustained in 2004, with China joining the U.S. as an engine of growth. U.S. interest rates could rise up to 1.0 percentage points for short maturities but less for longer maturities as markets anticipate tightening by the Federal Reserve by 2004 or early 2005. The bond market in 2004 will be challenging, with upward pressure on rates and full valuations in Treasuries, most corporates and mortgages. Duration from TIPS will remain slightly longer than benchmark duration with a focus on shorter maturity TIPS. Outside of the U.S. TIPS market, there are opportunities to add value through global inflation-linked bonds. Additionally, municipal and emerging market bonds remain compelling while a modest exposure to event-linked bonds provides an opportunity to increase yield. lvi U.S. GOVERNMENT SECURITIES TRUST INVESTMENT OBJECTIVE To achieve a high level of current income consistent with & POLICIES: the preservation of capital and maintenance of liquidity by investing at least 80% of the portfolio's net assets in debt obligations and mortgage-backed securities issued or guaranteed by the U.S. government, its agencies or instrumentalities and derivative securities. SUBADVISER: Salomon Brothers Asset Management Inc. PORTFOLIO MANAGER: Roger M. Lavan INCEPTION DATE: March 18, 1988++
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [U.S. GOVERNMENT SECURITIES TRUST PERFORMANCE GRAPH]
U.S GOVERNMENT SECURITIES TRUST SERIES I CITIGROUP 1-10 YEAR TREASURY INDEX ------------------------------- ---------------------------------- Dec. 1993 10000.00 10000.00 10096.00 10100.00 9963.00 9963.00 9844.00 9813.00 9828.00 9752.00 9844.00 9762.00 9821.00 9766.00 9930.00 9887.00 9976.00 9916.00 9859.00 9834.00 9836.00 9837.00 9812.00 9788.00 Dec. 1994 9875.00 9824.00 10047.00 9990.00 10258.00 10176.00 10320.00 10231.00 10435.00 10347.00 10812.00 10639.00 10879.00 10708.00 10854.00 10714.00 10954.00 10798.00 11029.00 10865.00 11155.00 10986.00 11289.00 11126.00 Dec. 1995 11414.00 11235.00 11489.00 11332.00 11305.00 11217.00 11239.00 11160.00 11197.00 11119.00 11152.00 11122.00 11276.00 11231.00 11311.00 11264.00 11320.00 11279.00 11497.00 11423.00 11709.00 11612.00 11886.00 11747.00 Dec. 1996 11797.00 11685.00 11860.00 11733.00 11904.00 11744.00 11815.00 11684.00 11973.00 11809.00 12058.00 11902.00 12171.00 12004.00 12408.00 12228.00 12351.00 12179.00 12503.00 12313.00 12646.00 12456.00 12674.00 12486.00 Dec. 1997 12796.00 12591.00 12949.00 12761.00 12958.00 12741.00 12995.00 12783.00 13068.00 12843.00 13158.00 12930.00 13228.00 13018.00 13278.00 13070.00 13458.00 13326.00 13727.00 13645.00 13657.00 13672.00 13677.00 13623.00 Dec. 1998 13757.00 13676.00 13816.00 13739.00 13666.00 13540.00 13757.00 13630.00 13798.00 13668.00 13683.00 13581.00 13652.00 13605.00 13559.00 13619.00 13559.00 13645.00 13756.00 13753.00 13808.00 13771.00 13787.00 13779.00 Dec. 1999 13725.00 13743.00 13632.00 13705.00 13819.00 13810.00 13954.00 13984.00 13974.00 13979.00 13985.00 14036.00 14231.00 14239.00 14309.00 14333.00 14500.00 14482.00 14646.00 14592.00 14735.00 14687.00 14959.00 14900.00 Dec. 2000 15217.00 15146.00 15407.00 15320.00 15519.00 15463.00 15598.00 15586.00 15563.00 15524.00 15634.00 15591.00 15647.00 15647.00 15944.00 15927.00 16062.00 16062.00 16346.00 16392.00 16572.00 16631.00 16381.00 16451.00 Dec. 2001 16286.00 16374.00 16394.00 16430.00 16525.00 16560.00 16346.00 16303.00 16611.00 16587.00 16711.00 16704.00 16860.00 16906.00 17057.00 17241.00 17231.00 17417.00 17391.00 17748.00 17415.00 17711.00 17367.00 17553.00 Dec. 2002 17589.00 17874.00 17614.00 17821.00 17749.00 18013.00 17724.00 18010.00 17792.00 18046.00 17907.00 18329.00 17895.00 18298.00 17422.00 17901.00 17511.00 17928.00 17779.00 18297.00 17703.00 18119.00 17754.00 18118.00 Dec. 2003 17895.00 18258.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Return Since Since Periods Ending December 31, 2003 1 Year 5 Year 10 Year Inception 5 Year 10 Year Inception Citigroup 1-10 year Treasury Index* 2.12% 5.95% 6.20% 33.49% 82.58% U.S. Government Securities Trust Series I 1.73% 5.40% 5.99% 30.07% 78.95% U.S. Government Securities Trust Series II+++ 1.59% 4.68% 9.24% U.S. Government Securities Trust Series III*** 2.26%
++ Current subadvisor assignment became effective December 13, 1991 +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the U.S. Government Securities Trust Series I returned +1.73%, underperforming the +2.12% return of the Citigroup 1-10 Year Treasury Index. ENVIRONMENT: When the period began, concerns about a faltering economy and stock market volatility, coupled with expectations that interest rates would drop, triggered investor demand for higher-rated fixed-income securities. Because bond prices typically move opposite to interest rate movements, many longer-term fixed-income securities appreciated over the first five months of the period. The Federal Reserve proceeded to reduce its interest rate targets in June to their lowest levels since the Eisenhower Administration. Shortly after the Fed's rate reduction, signs suggesting that gross domestic product (GDP) growth was stronger than expected renewed concerns over inflation. This led investors to question whether the Fed's rate-cutting cycle had run its course, which contributed to a decline in bond prices. The decline was exacerbated due to selling from investors holding mortgage-backed securities. Many institutional investors sold Treasuries as long-term rates rose to help lower their portfolios' duration, to better preserve their value against a further rise in long-term rates. Prices of Treasuries bounced back to an extent in September. Rate concerns resurfaced after the Commerce Department released preliminary third-quarter data stating that the economy grew at its fastest pace in almost 20 years. Third quarter economic growth was an annualized 8.2%. However, selling in the Treasury markets was more contained than it was in July as some of this growth was attributable to one-time factors, such as the tax cuts and the end of major combat in Iraq, and many analysts and investors felt that the Fed appeared to be in a holding pattern from adjusting its rate targets. We continued to allocate investment capital primarily between mortgage-backed fixed-income securities and U.S. Treasuries through the end of the period, while maintaining the ability to add exposure to other sectors when opportunities arise. Given that certain fixed-income sectors exhibited more volatility than others for much of 2003, our diversified approach to fixed-income investing reduced overall portfolio volatility yet enabled us to capture competitive yields. Although interest rate fluctuations can be unpredictable, as of year-end, we maintained a relatively defensive posture in terms of the portfolio's exposure to interest rate risk. lvii SMALL CAP INDEX TRUST INVESTMENT OBJECTIVE To achieve the approximate aggregate total return of a small & POLICIES: cap U.S. domestic equity market index by attempting to track the performance of the Russell 2000 Index. The portfolio invests at least 80% of its net assets in (a) the common stocks that are included in the Russell 2000 Index and (b) securities (which may or may not be included in the Russell 2000 Index) that MFC believes as a group will behave in a manner similar to the index. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Carson Jen and Narayan Ramani INCEPTION DATE: May 1, 2000
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [SMALL CAP INDEX TRUST PERFORMANCE GRAPH]
SMALL CAP INDEX TRUST SERIES I RUSSELL 2000 INDEX ------------------------------ ------------------ Apr. 2000 10000.00 10000.00 9168.00 9186.00 Jun. 2000 10000.00 9987.00 9728.00 9665.00 10375.00 10403.00 Sep. 2000 10112.00 10097.00 9656.00 9647.00 8704.00 8656.00 Dec. 2000 9362.00 9400.00 9826.00 9889.00 9187.00 9241.00 Mar. 2001 8740.00 8789.00 9412.00 9476.00 9636.00 9709.00 Jun. 2001 9960.00 10044.00 9396.00 9501.00 9089.00 9194.00 Sep. 2001 7870.00 7956.00 8318.00 8422.00 8957.00 9074.00 Dec. 2001 9503.00 9633.00 9402.00 9532.00 9149.00 9271.00 Mar. 2002 9865.00 10016.00 9949.00 10107.00 9494.00 9659.00 Jun. 2002 9031.00 9180.00 7641.00 7793.00 7607.00 7773.00 Sep. 2002 7060.00 7215.00 7279.00 7446.00 7911.00 8111.00 Dec. 2002 7462.00 7659.00 7250.00 7447.00 7037.00 7222.00 Mar. 2003 7131.00 7315.00 7803.00 8009.00 8610.00 8868.00 Jun. 2003 8755.00 9028.00 9291.00 9594.00 9715.00 10033.00 Sep. 2003 9520.00 9847.00 10310.00 10675.00 10667.00 11053.00 Dec. 2003 10879.00 11278.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Russell 2000 Index 47.25% 4.04% 12.78% Small Cap Index Trust Series I 45.79% 2.32% 8.79% Small Cap Index Trust Series II+++ 45.33% 8.15% 16.34% Small Cap Index Trust Series III*** 8.75%
+++ Series II inception date: January 28, 2002 ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Small Cap Index Trust Series I returned +45.79%, underperforming the +47.25% return of the Russell 2000 Index. ENVIRONMENT: The U.S. economy started out strong in 2003. The Federal stimulus package eliminated the double taxation of dividends. However, the continued geopolitical risks, high unemployment rate and decreased consumer confidence caused the market to continue to decline until mid-March. After the decisive victory in the Iraq war, all of the major indexes rallied strongly. But even with the rebound, consumer confidence and unemployment numbers remained mixed and deflation risks prompted the Federal Reserve to reduce rates from 1.25% to 1.0%. In the third quarter, the economy expanded at an 8.2% annualized rate and consumer spending increased at a 6.4% annualized rate. The labor market also continued its recovery with three straight months of job growth and an average of 82,000 new jobs created each month. Information Technology and Producer Durables were the best performing sectors, up 63.4% and 59.2% respectively; Consumer Staples and Utilities were the worst, gaining 23.9% and 33.9%. OUTLOOK: The economy is positioned to expand at a better pace than last year. Geopolitical risks have subsided; economic growth and consumer confidence have also increased. The major concerns in the near term are the size of the U.S. Government deficit and the need for a pickup in employment for the economic recovery to be sustainable. lviii INTERNATIONAL INDEX TRUST INVESTMENT OBJECTIVE To achieve the approximate aggregate total return of a & POLICIES: foreign equity market index by attempting to track the performance of the Morgan Stanley Europe Australasia Far East Free Index (the MSCI EAFE Index). The portfolio invests at least 80% of its net assets in (a) the common stocks that are included in the MSCI EAFE Index and (b) securities (which may or may not be included in the MSCI EAFE Index) that MFC believes as a group will behave in a manner similar to the index. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Carson Jen and Narayan Ramani INCEPTION DATE: May 1, 2000
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [INTERNATIONAL INDEX TRUST PERFORMANCE GRAPH]
INTERNATIONAL INDEX TRUST SERIES I MSCI EAFE INDEX ---------------------------------- --------------- Apr. 2000 10000.00 10000.00 9784.00 9715.00 Jun. 2000 10112.00 10097.00 9704.00 9675.00 9776.00 9761.00 Sep. 2000 9320.00 9288.00 9080.00 9071.00 8712.00 8732.00 Dec. 2000 9016.00 9045.00 9000.00 9040.00 8318.00 8363.00 Mar. 2001 7726.00 7810.00 8294.00 8357.00 7994.00 8069.00 Jun. 2001 7686.00 7742.00 7531.00 7602.00 7345.00 7411.00 Sep. 2001 6598.00 6662.00 6752.00 6832.00 6963.00 7085.00 Dec. 2001 6996.00 7127.00 6610.00 6749.00 6667.00 6796.00 Mar. 2002 7037.00 7167.00 7053.00 7219.00 7136.00 7317.00 Jun. 2002 6848.00 7029.00 6175.00 6335.00 6142.00 6322.00 Sep. 2002 5477.00 5645.00 5756.00 5949.00 6011.00 6220.00 Dec. 2002 5796.00 6011.00 5546.00 5760.00 5396.00 5629.00 Mar. 2003 5280.00 5522.00 5780.00 6070.00 6097.00 6443.00 Jun. 2003 6238.00 6603.00 6355.00 6764.00 6497.00 6928.00 Sep. 2003 6671.00 7143.00 7038.00 7589.00 7180.00 7759.00 Dec. 2003 7662.00 8365.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception MSCI EAFE Index 39.17% -4.64% -16.35% International Index Trust Series I 32.18% -7.00% -23.38% International Index Trust Series II+++ 32.12% 7.25% 14.48% International Index Trust Series III*** 15.57%
+++ Series II inception date: January 28, 2002 ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the International Index Trust Series I returned +32.18%, underperforming the +39.17% return of the MSCI EAFE Index. ENVIRONMENT: All of the MSCI EAFE Index sectors were in the positive territory for 2003. Information Technology was the best performer, followed by Industrials, Materials and Financials, all of which returned high double-digit gains. Energy, Consumer Staples and Utilities were the worst performing sectors. Likewise, most countries in the Index had gains for 2003. Greece was the best performing country, gaining about 67% in value. Sweden, Spain, Germany, New Zealand and Denmark also had high double-digit gains. Finland was the worst performer, followed by the Netherlands. MSCI rebalanced its EAFE Index in May and again in November. The rebalancing resulted in no significant country or sector weight changes. OUTLOOK: In 2003, the European Central Bank cut its benchmark interest rate from 2.75% to 2.0% in June. Similarly, the Bank of England cut its rate from 4.0% to 3.5% in July. A corporate profit recovery is underway in Japan, driven in part through sales growth but largely due to the effects of restructuring. lix MID CAP INDEX TRUST INVESTMENT OBJECTIVE & To achieve the approximate aggregate total return of a mid POLICIES: cap U.S. domestic equity market index by attempting to track the performance of the S&P MidCap 400 Index. The portfolio invests at least 80% of its net assets in (a) the common stocks that are included in the S&P 400 Index and (b) securities (which may or may not be included in the S&P MidCap 400 Index) that MFC believes as a group will behave in a manner similar to the index. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Carson Jen and Narayan Ramani INCEPTION DATE: May 1, 2000
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [MID CAP INDEX TRUST PERFORMANCE GRAPH]
MID CAP INDEX TRUST SERIES I S&P MIDCAP 400 INDEX ---------------------------- -------------------- Apr. 2000 10000.00 10000.00 9752.00 9742.00 Jun. 2000 9920.00 9885.00 10056.00 10041.00 11160.00 11162.00 Sep. 2000 11088.00 11086.00 10696.00 10710.00 9920.00 9902.00 Dec. 2000 10715.00 10659.00 10878.00 10897.00 10250.00 10275.00 Mar. 2001 9491.00 9511.00 10528.00 10560.00 10765.00 10806.00 Jun. 2001 10716.00 10762.00 10553.00 10602.00 10210.00 10255.00 Sep. 2001 8945.00 8979.00 9337.00 9377.00 10022.00 10074.00 Dec. 2001 10529.00 10595.00 10472.00 10540.00 10480.00 10553.00 Mar. 2002 11219.00 11307.00 11146.00 11254.00 10957.00 11064.00 Jun. 2002 10152.00 10254.00 9158.00 9261.00 9199.00 9308.00 Sep. 2002 8452.00 8558.00 8813.00 8929.00 9322.00 9445.00 Dec. 2002 8933.00 9057.00 8669.00 8792.00 8462.00 8583.00 Mar. 2003 8520.00 8655.00 9139.00 9284.00 9890.00 10053.00 Jun.2003 10006.00 10181.00 10361.00 10542.00 10823.00 11020.00 Sep. 2003 10642.00 10852.00 11434.00 11672.00 11831.00 12079.00 Dec. 2003 12020.00 12283.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Periods Ended December 31, 2003 1 Year Since Inception Since Inception S&P MidCap 400 Index 35.61% 6.16% 22.83% Mid Cap Index Trust Series I 34.57% 5.14% 20.20% Mid Cap Index Trust Series II+++ 34.32% 7.05% 14.07% Mid Cap Index Trust Series III*** 9.39%
+++ Series II inception date: January 28, 2002 ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Mid Cap Index Trust Series I returned +34.57%, underperforming the +35.61% return of the S&P MidCap 400 Index. ENVIRONMENT: The U.S. economy started out strong in 2003. The federal stimulus package eliminated the double taxation of dividends. However, the continued geopolitical risks, high unemployment rate and decreased consumer confidence caused the market to continue to decline until mid-March. After the decisive victory in the Iraq war, all of the major indexes rallied strongly. But even with the rebound, consumer confidence and unemployment numbers remained mixed and deflation risks prompted the Federal Reserve to reduce rates from 1.25% to 1.0%. In the third quarter, the economy expanded at an 8.2% annualized rate and consumer spending increased at a 6.4% annualized rate. The labor market is also continuing its recovery with three straight months of job growth and an average of 82,000 new jobs created each month. For the year, Information Technology and Health Care were the best performing sectors, up 52.9% and 45.0% respectively; Materials and Energy were the worst, gaining 20.0% and 17.2%. OUTLOOK: The economy is positioned to expand at a better pace than last year. Geopolitical risks have subsided; economic growth and consumer confidence have also increased. The major concerns in the near term are the size of the U.S. government deficit and the need for a pickup in employment for the economic recovery to be sustainable. lx TOTAL STOCK MARKET INDEX TRUST INVESTMENT OBJECTIVE & To achieve the approximate aggregate total return of a broad POLICIES: U.S. domestic equity market index by attempting to track the performance of the Wilshire 5000 Index. The portfolio invests at least 80% of its net assets in (a) the common stocks that are included in the Wilshire 5000 Index and (b) securities (which may or may not be included in the Wilshire 5000 Index) that MFC believes as a group will behave in a manner similar to the index. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Carson Jen and Narayan Ramani INCEPTION DATE: May 1, 2000
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [TOTAL STOCK MARKET INDEX TRUST PERFORMANCE GRAPH]
TOTAL STOCK MARKET INDEX TRUST WILSHIRE 5000 INDEX SERIES I ------------------- ------------------------------ Apr. 2000 10000.00 10000.00 9509.00 9480.00 Jun. 2000 9928.00 9960.00 9726.00 9744.00 10432.00 10432.00 Sep. 2000 9945.00 9952.00 9734.00 9768.00 8766.00 8840.00 Dec. 2000 8922.00 8996.00 9264.00 9327.00 8385.00 8439.00 Mar. 2001 7821.00 7873.00 8464.00 8519.00 8548.00 8600.00 Jun. 2001 8405.00 8447.00 8266.00 8309.00 7766.00 7801.00 Sep. 2001 7068.00 7106.00 7248.00 7284.00 7803.00 7833.00 Dec. 2001 7943.00 7969.00 7844.00 7855.00 7683.00 7701.00 Mar. 2002 8019.00 8026.00 7628.00 7636.00 7538.00 7538.00 Jun. 2002 7008.00 7001.00 6442.00 6439.00 6480.00 6480.00 Sep. 2002 5830.00 5828.00 6276.00 6276.00 6654.00 6651.00 Dec. 2002 6286.00 6273.00 6128.00 6117.00 6024.00 6010.00 Mar. 2003 6092.00 6067.00 6591.00 6569.00 6994.00 6955.00 Jun. 2003 7097.00 7054.00 7268.00 7218.00 7443.00 7383.00 Sep. 2003 7361.00 7301.00 7810.00 7736.00 7919.00 7843.00 Dec. 2003 8275.00 8188.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Wilshire 5000 Index 31.64% -4.65% -17.25% Total Stock Market Index Trust Series I 30.54% -5.30% -18.12% Total Stock Market Index Trust Series II+++ 30.31% 1.94% 3.79% Total Stock Market Index Trust Series III*** 8.62%
+++ Series II inception date: January 28, 2002 ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Total Stock Market Index Series I returned +30.54%, underperforming the +31.64% return of the Wilshire 5000 Index. ENVIRONMENT: The U.S. economy started out strong in 2003. The Federal stimulus package eliminated the double taxation of dividends. However, the continued geopolitical risks, high unemployment rate and decreased consumer confidence caused the market to continue to decline until mid-March. After the decisive victory in the Iraq war, all of the major indexes rallied strongly. But even with the rebound, consumer confidence and unemployment numbers remained mixed and deflation risks prompted the Federal Reserve to reduce rates from 1.25% to 1.0%. In the third quarter, the economy expanded at an 8.2% annualized rate and consumer spending increased at a 6.4% annualized rate. The labor market also continued its recovery with three straight months of job growth and an average of 82,000 new jobs created each month. Information Technology and Consumer Durables were the best performing sectors, up 47.1% and 46.4% respectively; Transportation and Consumer Non-Durables were the worst, gaining 25.1% and 22.4%. OUTLOOK: The economy is positioned to expand at a better pace than last year. Geopolitical risks have subsided; economic growth and consumer confidence have also increased. The major concerns in the near term are the size of the U.S. government deficit and the need for a pickup in employment for the economic recovery to be sustainable. lxi 500 INDEX TRUST INVESTMENT OBJECTIVE & To achieve the approximate aggregate total return of a broad POLICIES: U.S. domestic equity market index by attempting to track the performance of the S&P 500 Index. The Trust invests, under normal market conditions, at least 80% of its net assets in (a) the common stocks that are included in the S&P 500 Index and (b) securities (which may or may not be included in the S&P 500 Index) that MFC believes as a group will behave in a manner similar to the index. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Martin Ayow and Narayan Ramani INCEPTION DATE: May 1, 2000
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [500 INDEX TRUST PERFORMANCE GRAPH]
500 INDEX TRUST SERIES I S&P 500 INDEX ------------------------ ------------- Apr. 2000 10000 10000 9680 9689 Jun. 2000 9896 9928 9744 9773 Aug. 2000 10344 10380 9800 9832 Oct. 2000 9768 9790 9000 9019 Dec. 2000 9043 9063 9356 9384 Feb. 2001 8498 8529 7961 7988 Apr. 2001 8570 8609 8626 8667 Jun. 2001 8410 8456 8322 8373 Aug. 2001 7801 7848 7167 7215 Oct. 2001 7304 7352 7857 7916 Dec. 2001 7924 7986 7803 7869 Feb. 2002 7650 7717 7932 8008 Apr. 2002 7448 7522 7391 7467 Jun. 2002 6858 6935 6317 6394 Aug. 2002 6357 6436 5663 5737 Oct. 2002 6164 6242 6527 6609 Dec. 2002 6139 6220 5978 6057 Feb.2003 5889 5967 5937 6024 Apr.2003 6422 6521 6765 6865 Jun.2003 6847 6952 6961 7075 Aug.2003 7092 7213 7018 7136 Oct.2003 7410 7540 7467 7607 Dec.2003 7859 8005
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception S&P 500 Index 28.70% -5.61% -19.95% 500 Index Trust Series I 28.01% -6.36% -21.41% 500 Index Trust Series II+++ 27.76% 0.09% 0.18% 500 Index Trust Series III*** 8.57%
+++ Series II inception date: January 28, 2002 ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. *** Series III inception date: September 5, 2003. Total return would have been lower had operating expenses not been reduced. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the 500 Index Trust Series I returned +28.01%, underperforming the +28.70% return of the S&P 500 Index. ENVIRONMENT: The U.S. economy started out strong in 2003. The federal stimulus package eliminated the double taxation of dividends. However, the continued geopolitical risks, high unemployment rate and decreased consumer confidence caused the market to continue to decline until mid-March. After the decisive victory in the Iraq war, all of the major indexes rallied strongly. But even with the rebound, consumer confidence and unemployment numbers remained mixed and deflation risks prompted the Federal Reserve to reduce rates from 1.25% to 1.0%. In the third quarter, the economy expanded at an 8.2% annualized rate and consumer spending increased at a 6.4% annualized rate. The labor market is also continuing its recovery with three straight months of job growth and an average of 82,000 new jobs created each month. For the year, Information Technology and Consumer Discretionary were the best performing sectors, up 46.6% and 36.1% respectively; Consumer Staples and Utilities were the worst, returning 9.2% and 6.9%. OUTLOOK: The economy is positioned to expand at a better pace than last year. Geopolitical risks have subsided; economic growth and consumer confidence have also increased. The major concerns in the near term are the size of the U.S. government deficit and the need for a pickup in employment for the economic recovery to be sustainable. lxii LIFESTYLE AGGRESSIVE 1000 TRUST INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing 100% of & POLICIES: the portfolio's assets in other portfolios of the Trust (underlying portfolios) that invest primarily in equity securities. Current income is not a consideration. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Management Team INCEPTION DATE: January 7, 1997
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [LIFESTYLE AGGRESSIVE 1000 TRUST PERFORMANCE GRAPH]
LIFESTYLE AGGRESSIVE LIFESTYLE AGGRESSIVE 1000 TRUST SERIES I RUSSELL 2000 INDEX POLICY RUSSELL 3000 INDEX -------------------- ------------------ -------------------- ------------------ Dec. 1996 10000.00 10000.00 10000.00 10000.00 10112.00 10200.00 10186.00 10553.00 9920.00 9952.00 10189.00 10565.00 9568.00 9482.00 9883.00 10087.00 9637.00 9509.00 10128.00 10584.00 10302.00 10566.00 10909.00 11307.00 Jun. 1997 10738.00 11020.00 11414.00 11778.00 11321.00 11532.00 12001.00 12701.00 10886.00 11796.00 11557.00 12185.00 11543.00 12660.00 12253.00 12876.00 10968.00 12104.00 11644.00 12444.00 10960.00 12025.00 11793.00 12920.00 Dec. 1997 11090.00 12236.00 11980.00 13179.00 10991.00 12042.00 12142.00 13247.00 11691.00 12932.00 12990.00 14194.00 12210.00 13465.00 13531.00 14898.00 12287.00 13539.00 13644.00 15044.00 11854.00 12809.00 13304.00 14673.00 Jun. 1998 12036.00 12836.00 13546.00 15169.00 11403.00 11798.00 13228.00 14893.00 9523.00 9507.00 11200.00 12611.00 9895.00 10251.00 11637.00 13471.00 10345.00 10669.00 12530.00 14494.00 10926.00 11228.00 13232.00 15381.00 Dec. 1998 11628.00 11923.00 13967.00 16359.00 11733.00 12082.00 14208.00 16915.00 11029.00 11103.00 13606.00 16316.00 11385.00 11277.00 14060.00 16915.00 11625.00 12287.00 14825.00 17678.00 11371.00 12466.00 14509.00 17342.00 Jun. 1999 11944.00 13030.00 15172.00 18218.00 11835.00 12673.00 15016.00 17666.00 11635.00 12204.00 14827.00 17464.00 11480.00 12206.00 14710.00 17017.00 11880.00 12255.00 15308.00 18084.00 12298.00 12987.00 15889.00 18591.00 Dec. 1999 13327.00 14457.00 17223.00 19777.00 12741.00 14224.00 16510.00 19002.00 13217.00 16573.00 17372.00 19178.00 13886.00 15480.00 17928.00 20680.00 13247.00 14548.00 17091.00 19952.00 12862.00 13700.00 16508.00 19391.00 Jun. 2000 13508.00 14895.00 17277.00 19965.00 13218.00 14415.00 16780.00 19612.00 14086.00 15515.00 17682.00 21067.00 13517.00 15059.00 16931.00 20113.00 13179.00 14387.00 16516.00 19827.00 11983.00 12910.00 15243.00 17999.00 Dec. 2000 12646.00 14022.00 15846.00 18302.00 13004.00 14753.00 16280.00 18927.00 11826.00 13785.00 14980.00 17197.00 10975.00 13111.00 14057.00 16076.00 11952.00 14136.00 15132.00 17366.00 11910.00 14484.00 15108.00 17504.00 Jun.2001 11637.00 14983.00 14913.00 17182.00 11341.00 14173.00 14525.00 16899.00 10802.00 13715.00 13918.00 15902.00 9630.00 11869.00 12478.00 14499.00 10011.00 12563.00 12883.00 14837.00 10697.00 13536.00 13712.00 15980.00 Dec. 2001 10917.00 14371.00 14026.00 16205.00 10611.00 14222.00 13675.00 16002.00 10505.00 13832.00 13493.00 15676.00 11065.00 14943.00 14249.00 16362.00 10762.00 15080.00 13982.00 15503.00 10655.00 14410.00 13824.00 15324.00 Jun. 2002 9932.00 13695.00 13046.00 14220.00 8943.00 11627.00 11706.00 13090.00 8932.00 11597.00 11715.00 13151.00 8060.00 10764.00 10571.00 11769.00 8603.00 11110.00 11204.00 12706.00 9145.00 12101.00 11907.00 13475.00 Dec. 2002 8656.00 11427.00 11326.00 12713.00 8390.00 11110.00 10978.00 12402.00 8199.00 10775.00 10739.00 12197.00 8199.00 10914.00 10757.00 12325.00 8911.00 11949.00 11730.00 13332.00 9487.00 13231.00 12574.00 14138.00 Jun.2003 9680.00 13470.00 12827.00 14328.00 9947.00 14313.00 13250.00 14657.00 10278.00 14969.00 13690.00 14982.00 10246.00 14692.00 13713.00 14819.00 10909.00 15926.00 14640.00 15715.00 11112.00 16491.00 14936.00 15932.00 Dec.2003 11642.00 16827.00 15731.00 16664.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception Russell 2000 Index* 47.25% 7.13% 7.72% 41.11% 68.27% Russell 3000 Index* 31.06% 0.37% 7.57% 1.86% 66.64% Lifestyle Aggressive Policy*+ 38.89% 2.40% 6.69% 12.59% 57.31% Lifestyle Aggressive 1000 Trust Series I 34.91% 0.04% 2.20% 0.19% 16.42% Lifestyle Aggressive 1000 Trust Series II+++ 34.91% 4.87% 9.62% Lifestyle Aggressive 1000 Trust Series III*** 11.53%
+ The Lifestyle Aggressive Policy is a blend of returns (41% Russell 1000 Index, 27% Russell 2000 Index, and 32% MSCI EAFE Index). The Lifestyle Aggressive Policy was prepared by the advisor using Ibbotson Associates Software and Data. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Lifestyle Aggressive 1000 Trust Series I returned +34.91%, underperforming the +38.89% return of the Lifestyle Aggressive Policy. ENVIRONMENT: Real estate securities performed well as the NAREIT Index posted a return of 38.47% for the year. On a market capitalization basis, small and mid caps outperformed large cap stocks. On a style basis, value-oriented stocks slightly outperformed their growth counterparts as the Russell 3000 Value Index returned 31.13% versus the Russell 3000 Growth Index return of 30.97%. Foreign equities generated positive returns as the MSCI EAFE Index returned 39.17%. The Lifestyle Aggressive 1000 Trust underperformed its benchmark for the year. The small and mid cap and foreign components detracted from performance. The large cap component detracted from portfolio performance due to the underperformance of the Equity Income Trust. OUTLOOK: While the near term outlook for stocks continues to be encouraging, the gains are most likely behind us. If a correction materializes, it is expected to be short-lived, since the US and global economies continue to recover. lxiii LIFESTYLE GROWTH 820 TRUST INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing & POLICIES: approximately 20% of the portfolio's assets in underlying portfolios that invest primarily in fixed income securities and approximately 80% of its assets in underlying portfolios that invest primarily in equity securities. Current income is also a consideration. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Management Team INCEPTION DATE: January 7, 1997
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [LIFESTYLE GROWTH 820 TRUST PERFORMANCE GRAPH]
LEHMAN BROTHERS LIFESTYLE GROWTH 820 GOVERNMENT/CREDIT LIFESTYLE GROWTH TRUST SERIES I S&P 500 INDEX BOND INDEX POLICY -------------------- ------------- ----------------- ---------------- Dec. 1996 10000 10000 10000 10000 10144 10621 10012 10220 10104 10707 10033 10253 9824 10262 9914 9965 9967 10874 10058 10227 10517 11542 10152 10868 Jun. 1997 10894 12057 10274 11294 11420 13014 10588 11864 11132 12290 10470 11486 11641 12964 10634 12066 11173 12531 10804 11642 11247 13111 10861 11829 Dec. 1997 11384 13336 10975 12011 11367 13484 11130 12176 11971 14457 11107 12868 12401 15197 11142 13335 12467 15350 11198 13442 12188 15086 11317 13199 Jun. 1998 12293 15699 11433 13443 11901 15532 11442 13234 10302 13286 11665 11535 10615 14137 11999 11980 11102 15287 11914 12700 11641 16214 11985 13362 Dec. 1998 12090 17148 12014 13973 12134 17865 12099 14238 11677 17309 11811 13747 12010 18002 11870 14146 12456 18698 11900 14769 12281 18257 11777 14477 Jun. 1999 12777 19270 11741 15011 12668 18669 11708 14846 12512 18576 11699 14686 12392 18067 11804 14545 12751 19210 11835 15071 12165 19600 11828 15526 Dec. 1999 14093 20757 11756 16522 13583 19715 11752 15957 14047 19342 11899 16496 14632 21234 12071 17054 14055 20595 12012 16457 13683 20173 12001 16004 Jun. 2000 14236 20669 12246 16611 14035 20347 12375 16293 14810 21610 12550 17072 14327 20469 12598 16464 14066 20383 12677 16125 13081 18777 12894 15038 Dec. 2000 13663 18867 13147 15505 14055 19537 13368 15999 13070 17755 13506 14977 12305 16631 13568 14200 13133 17923 13466 15046 13156 18043 13544 15079 Jun. 2001 12902 17605 13609 14851 12713 17432 13948 14632 12249 16341 14126 14137 11222 15021 14256 12900 11620 15308 14619 13284 12250 16482 14379 14039 Dec. 2001 12437 16624 14266 14250 12172 16382 14370 14004 12051 16066 14492 13832 12525 16670 14198 14444 12214 15660 14473 14189 12134 15544 14606 14057 Jun. 2002 11435 14437 14730 13248 10578 13311 14907 12163 10600 13399 15241 12253 9776 11943 15569 11264 10351 12994 15419 11835 10927 13759 15429 12527 Dec. 2002 10467 12950 15837 12059 10252 12611 15837 11827 10105 12422 16119 11665 10139 12542 16098 11741 10883 13576 16271 12669 11466 14291 16733 13400 Jun.2003 11650 14474 16666 13638 11809 14729 15967 13891 12129 15016 16073 14255 12163 14857 16582 14353 12758 15698 16372 15112 12975 15836 16416 15363 Dec.2003 13498 16666 16579 16084
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception S&P 500 Index* 28.70% -0.57% 7.57% -2.81% 66.66% Lehman Brothers Government/Credit Bond Index* 4.68% 6.65% 7.49% 37.99% 65.79% Lifestyle Growth Policy*+ 33.38% 2.86% 7.02% 15.11% 60.84% Lifestyle Growth 820 Trust Series I 29.55% 2.24% 4.39% 11.71% 34.98% Lifestyle Growth 820 Trust Series II+++ 29.44% 5.45% 10.80% Lifestyle Growth 820 Trust Series III*** 10.12%
+ The Lifestyle Growth Policy is a blend of returns (42% Russell 1000 Index, 17% Russell 2000 Index, 21% MSCI EAFE Index, 3% Lehman Brothers IT Government/Credit Bond Index, 3% Lehman Brothers 1-3 Year Government Index, 2% Lehman Brothers LT Government/Credit Bond Index, 12% Salomon Brothers High Yield Bond Index). The Lifestyle Growth Composite Index was prepared by the adviser using Ibbotson Associates Software and Data. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Lifestyle Growth 820 Trust Series I returned +29.55%, underperforming the +33.38% return of the Lifestyle Growth Policy. ENVIRONMENT: Real estate securities performed well as the NAREIT Index posted a return of 38.47% for the year. On a market capitalization basis, small and mid caps outperformed large cap stocks. On a style basis, value-oriented stocks slightly outperformed their growth counterparts as the Russell 3000 Value Index returned 31.13% versus the Russell 3000 Growth Index return of 30.97%. Foreign equities generated positive returns as the MSCI EAFE Index returned 39.17%. Fixed income performance was poor with investment grade bonds performing relatively worse as returns ranged between 2.01% for short-term issues (per Lehman Brothers 1-3 year Gov't Index), and 5.88% for long-term issues (per Lehman Brothers Gov't/Credit Long Term Index). In contrast, high yield bonds experienced higher returns as the Citigroup High Yield Market Index rose 30.62% over the year. The Lifestyle Growth 820 Trust underperformed its benchmark for the year. The large, mid and small cap components and the foreign component detracted from portfolio performance. The fixed income component contributed negatively to portfolio performance. OUTLOOK: While the near term outlook for stocks continues to be encouraging, the gains are most likely behind us. If a correction materializes, it is expected to be short-lived, since the US and global economies continue to recover. lxiv LIFESTYLE BALANCED 640 TRUST INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing & POLICIES: approximately 40% of the portfolio's assets in underlying portfolios that invest primarily in fixed income securities and approximately 60% of its assets in underlying portfolios that invest primarily in equity securities. Current income is also a consideration. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Management Team INCEPTION DATE: January 7, 1997
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [LIFESTYLE BALANCED 640 TRUST PERFORMANCE GRAPH]
LEHMAN BROTHERS LIFESTYLE BALANCED 640 GOVERNMENT/CREDIT LIFESTYLE BALANCED TRUST SERIES I S&P 500 INDEX BOND INDEX POLICY ---------------------- ------------- ----------------- ------------------ Dec.1996 10000 10000 10000 10000 10147 10621 10012 10193 10151 10707 10033 10253 9907 10262 9914 10046 10099 10874 10058 10263 10528 11542 10152 10705 Jun.1997 10842 12057 10274 11050 11330 13014 10588 11529 11127 12290 10470 11220 11541 12964 10634 11685 11176 12531 10804 11430 11261 13111 10861 11624 Dec.1997 11411 13336 10975 11790 11397 13484 11130 11957 11887 14457 11107 12398 12235 15197 11142 12739 12282 15350 11198 12799 12069 15086 11317 12689 Jun.1998 12149 15699 11433 12890 11803 15532 11442 12779 10526 13286 11665 11611 10890 14137 11999 11992 11271 15287 11914 12474 11723 16214 11985 12984 Dec.1998 12064 17148 12014 13363 12100 17865 12099 13562 11725 17309 11811 13243 12002 18002 11870 13538 12422 18698 11900 14006 12224 18257 11777 13780 Jun.1999 12545 19270 11741 14107 12403 18669 11708 13976 12337 18576 11699 13882 12262 18067 11804 13738 12610 19210 11835 14107 12939 19600 11828 14360 Dec.1999 13562 20757 11756 14954 13266 19715 11752 14586 13609 19342 11899 14751 14085 21234 12071 15284 13776 20595 12012 15036 13624 20173 12001 14797 Jun.2000 14025 20669 12246 15192 13967 20347 12375 15145 14472 21610 12550 15615 14157 20469 12598 15262 13964 20383 12677 15024 13411 18777 12894 14363 Dec.2000 13859 18867 13147 14712 14226 19537 13368 15127 13590 17755 13506 14475 13068 16631 13568 13962 13622 17923 13466 14519 13656 18043 13544 14577 Jun.2001 13466 17605 13609 14410 13422 17432 13948 14352 13131 16341 14126 14075 12357 15021 14256 13212 12649 15308 14619 13483 13142 16482 14379 14064 Dec.2001 13242 16624 14266 14161 13086 16382 14370 14015 12985 16066 14492 13930 13321 16670 14198 14359 13092 15660 14473 14184 13057 15544 14606 14145 Jun.2002 12501 14437 14730 13526 11829 13311 14907 12791 11922 13399 15241 12927 11238 11943 15569 12176 11690 12994 15419 12578 12212 13759 15429 13155 Dec.2002 11924 12950 15837 12885 11762 12611 15837 12738 11716 12422 16119 12687 11773 12542 16098 12791 12428 13576 16271 13565 12975 14291 16733 14135 Jun.2003 13141 14474 16666 14333 13176 14729 15967 14353 13462 15016 16073 14641 13605 14857 16582 14871 14044 15698 16372 15393 14247 15836 16416 15613 Dec.2003 14776 16666 16579 16247
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception S&P 500 Index* 28.70% -0.57% 7.57% -2.81% 66.66% Lehman Brothers Government/Credit Bond Index* 4.68% 6.65% 7.49% 37.99% 65.79% Lifestyle Balanced Policy*+ 26.09% 3.98% 7.18% 21.57% 62.47% Lifestyle Balanced 640 Trust Series I 23.97% 4.15% 5.75% 22.54% 47.76% Lifestyle Balanced 640 Trust Series II+++ 23.97% 6.33% 12.59% Lifestyle Balanced 640 Trust Series III*** 8.56%
+ The Lifestyle Balanced Policy is a blend of returns (35% Russell 1000 Index, 4% Russell 2000 Index, 14% MSCI EAFE, 6% Lehman Brothers IT Government/Credit Bond Index, 4% Lehman Brothers LT Government/Credit Bond Index, 9% Lehman Brothers 1-3 Year Government Index, 16% Salomon Brothers High Yield Index, 7% NAREIT Index, and 5% of the 3-month T-Bill). The Lifestyle Balanced Composite Index was prepared by the adviser using Ibbotson Associates Software and Data. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Lifestyle Balanced 640 Trust Series I returned +23.97%, underperforming the +26.09% return of the Lifestyle Balanced Policy. ENVIRONMENT: Real estate securities performed well as the NAREIT Index posted a return of 38.47% for the year. On a market capitalization basis, small and mid caps outperformed large cap stocks. On a style basis, value-oriented stocks slightly outperformed their growth counterparts as the Russell 3000 Value Index returned 31.13% versus the Russell 3000 Growth Index return of 30.97%. Foreign equities generated positive returns as the MSCI EAFE Index returned 39.17%. Fixed income performance was poor with investment grade bonds performing relatively worse as returns ranged between 2.01% for short-term issues (per Lehman Brothers 1-3 year Gov't Index), and 5.88% for long-term issues (per Lehman Brothers Gov't/Credit Long Term Index). In contrast, high yield bonds experienced higher returns as the Citigroup High Yield Market Index rose 30.62% over the year. The Lifestyle Balanced 640 Trust underperformed its benchmark for the year. The large and mid cap components and the foreign component detracted from portfolio performance. The real estate component contributed slightly to portfolio performance. The fixed income component contributed negatively to portfolio performance. OUTLOOK: While the near term outlook for stocks continues to be encouraging, the gains are most likely behind us. If a correction materializes, it is expected to be short-lived, since the US and global economies continue to recover. lxv LIFESTYLE MODERATE 460 TRUST INVESTMENT OBJECTIVE & To achieve a balance between a high level of current income POLICIES: and growth of capital with a greater emphasis on income by investing approximately 60% of the portfolio's assets in underlying portfolios that invest primarily in fixed income securities and approximately 40% of its assets in underlying portfolios that invest primarily in equity securities. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Management Team INCEPTION DATE: January 7, 1997
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [LIFESTYLE MODERATE 460 TRUST PERFORMANCE GRAPH]
LEHMAN BROTHERS LIFESTYLE MODERATE 460 GOVERNMENT/CREDIT LIFESTYLE MODERATE TRUST SERIES I S&P 500 INDEX BOND INDEX POLICY ---------------------- ------------- ----------------- ------------------ Dec. 1996 10000.00 10000.00 10000.00 10000.00 10134.00 10621.00 10012.00 10130.00 10206.00 10707.00 10033.00 10189.00 10046.00 10262.00 9914.00 10047.00 10253.00 10874.00 10058.00 10212.00 10548.00 11542.00 10152.00 10520.00 Jun. 1997 10785.00 12057.00 10274.00 10783.00 11182.00 13014.00 10588.00 11152.00 10998.00 12290.00 10470.00 10938.00 11285.00 12964.00 10634.00 11288.00 11082.00 12531.00 10804.00 11163.00 11232.00 13111.00 10861.00 11303.00 Dec. 1997 11370.00 13336.00 10975.00 11442.00 11463.00 13484.00 11130.00 11601.00 11819.00 14457.00 11107.00 11865.00 12066.00 15197.00 11142.00 12091.00 12123.00 15350.00 11198.00 12137.00 12066.00 15086.00 11317.00 12107.00 Jun. 1998 12142.00 15699.00 11433.00 12252.00 12076.00 15532.00 11442.00 12198.00 11246.00 13286.00 11665.00 11496.00 11517.00 14137.00 11999.00 11803.00 11913.00 15287.00 11914.00 12094.00 12264.00 16214.00 11985.00 12446.00 Dec. 1998 12480.00 17148.00 12014.00 12673.00 12502.00 17865.00 12099.00 12810.00 12327.00 17309.00 11811.00 12576.00 12574.00 18002.00 11870.00 12780.00 12999.00 18698.00 11900.00 13103.00 12877.00 18257.00 11777.00 12941.00 Jun. 1999 13029.00 19270.00 11741.00 13126.00 12925.00 18669.00 11708.00 13053.00 12820.00 18576.00 11699.00 12999.00 12801.00 18067.00 11804.00 12926.00 12943.00 19210.00 11835.00 13149.00 13114.00 19600.00 11828.00 13300.00 Dec. 1999 13466.00 20757.00 11756.00 13647.00 13247.00 19715.00 11752.00 13426.00 13456.00 19342.00 11899.00 13524.00 13827.00 21234.00 12071.00 13886.00 13627.00 20595.00 12012.00 13774.00 13501.00 20173.00 12001.00 13646.00 Jun. 2000 13831.00 20669.00 12246.00 13945.00 13849.00 20347.00 12375.00 13989.00 14200.00 21610.00 12550.00 14279.00 14014.00 20469.00 12598.00 14103.00 13915.00 20383.00 12677.00 13958.00 13663.00 18777.00 12894.00 13614.00 Dec. 2000 14040.00 18867.00 13147.00 13909.00 14284.00 19537.00 13368.00 14251.00 13901.00 17755.00 13506.00 13902.00 13583.00 16631.00 13568.00 13608.00 13951.00 17923.00 13466.00 13938.00 14001.00 18043.00 13544.00 14004.00 Jun. 2001 13926.00 17605.00 13609.00 13908.00 13952.00 17432.00 13948.00 13955.00 13842.00 16341.00 14126.00 13848.00 13306.00 15021.00 14256.00 13308.00 13538.00 15308.00 14619.00 13546.00 13838.00 16482.00 14379.00 13914.00 Dec. 2001 13886.00 16624.00 14266.00 13955.00 13819.00 16382.00 14370.00 13881.00 13786.00 16066.00 14492.00 13858.00 13982.00 16670.00 14198.00 14111.00 13941.00 15660.00 14473.00 14074.00 13943.00 15544.00 14606.00 14084.00 Jun. 2002 13576.00 14437.00 14730.00 13680.00 13115.00 13311.00 14907.00 13221.00 13247.00 13399.00 15241.00 13381.00 12820.00 11943.00 15569.00 12916.00 13059.00 12994.00 15419.00 13155.00 13440.00 13759.00 15429.00 13587.00 Dec. 2002 13325.00 12950.00 15837.00 13495.00 13230.00 12611.00 15837.00 13413.00 13254.00 12422.00 16119.00 13437.00 13302.00 12542.00 16098.00 13531.00 13847.00 13576.00 16271.00 14122.00 14326.00 14291.00 16733.00 14573.00 Jun. 2003 14461.00 14474.00 16666.00 14710.00 14338.00 14729.00 15967.00 14610.00 14583.00 15016.00 16073.00 14807.00 14817.00 14857.00 16582.00 15088.00 15112.00 15698.00 16372.00 15411.00 15284.00 15836.00 16416.00 15584.00 Dec. 2003 15697.00 16666.00 16579.00 16028.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception S&P 500 Index* 28.70% -0.57% 7.57% -2.81% 66.66% Lehman Brothers Government/Credit Bond Index* 4.68% 6.65% 7.49% 37.99% 65.79% Lifestyle Moderate Policy*+ 18.75% 4.81% 6.97% 26.47% 60.28% Lifestyle Moderate 460 Trust Series I 17.83% 4.69% 6.67% 25.76% 56.97% Lifestyle Moderate 460 Trust Series II+++ 17.83% 6.72% 13.38% Lifestyle Moderate 460 Trust Series III*** 6.76%
+ The Lifestyle Moderate Policy is a blend of returns (22% Russell 1000 Index, 1% Russell 2000 Index, 10% MSCI EAFE Index, 14% Lehman Brothers IT Government/Credit Bond Index, 6% Lehman Brothers LT Government/Credit Bond Index, 17% Lehman Brothers 1-3 Year Government Index, 8% Salomon Brothers 3-month T-Bill, 15% Salomon Brothers High Yield Index, and 7% NAREIT Index). The Lifestyle Moderate Composite Index was prepared by the adviser using Ibbotson Associates Software and Data. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Lifestyle Moderate 460 Trust Series I returned +17.83%, underperforming the +18.75% return of the Lifestyle Moderate Policy. ENVIRONMENT: Real estate securities performed well as the NAREIT Index posted a return of 38.47% for the year. On a market capitalization basis, small and mid caps outperformed large cap stocks. On a style basis, value-oriented stocks slightly outperformed their growth counterparts as the Russell 3000 Value Index returned 31.13% versus the Russell 3000 Growth Index return of 30.97%. Foreign equities generated positive returns as the MSCI EAFE Index returned 39.17%. Fixed income performance was poor with investment grade bonds performing relatively worse as returns ranged between 2.01% for short-term issues (per Lehman Brothers 1-3 year Gov't Index), and 5.88% for long-term issues (per Lehman Brothers Gov't/Credit Long Term Index). In contrast, high yield bonds experienced higher returns as the Citigroup High Yield Market Index rose 30.62% over the year. The Lifestyle Moderate 420 Trust underperformed its benchmark for the year. The large cap component contributed to portfolio performance due to the outperformance of the All Cap Value Trust. The real estate component contributed slightly to performance. The foreign component detracted from portfolio performance due to the underperformance of the International Stock Trust. The fixed income component contributed negatively to portfolio performance. OUTLOOK: While the near term outlook for stocks continues to be encouraging, the gains are most likely behind us. If a correction materializes, it is expected to be short-lived, since the US and global economies continue to recover. lxvi LIFESTYLE CONSERVATIVE 280 TRUST INVESTMENT OBJECTIVE To achieve a high level of current income with some & POLICIES: consideration given to growth of capital by investing approximately 80% of the portfolio's assets in underlying portfolios that invest primarily in fixed income securities and approximately 20% of its assets in underlying portfolios that invest primarily in equity securities. SUBADVISER: MFC Global Investment Management (U.S.A.) Limited PORTFOLIO MANAGERS: Management Team INCEPTION DATE: January 7, 1997
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [LIFESTYLE CONSERVATIVE 280 TRUST PERFORMANCE GRAPH]
LEHMAN BROTHERS LIFESTYLE CONSERVATIVE 280 GOVERNMENT/CREDIT BOND LIFESTYLE CONSERVATIVE TRUST SERIES I INDEX POLICY -------------------------- ---------------------- ---------------------- Dec.1996 10000.00 10000.00 10000.00 10115.00 10012.00 10083.00 10176.00 10033.00 10126.00 10071.00 9914.00 10055.00 10236.00 10058.00 10170.00 10422.00 10152.00 10351.00 Jun.1997 10591.00 10274.00 10518.00 10890.00 10588.00 10754.00 10787.00 10470.00 10655.00 10991.00 10634.00 10873.00 10983.00 10804.00 10855.00 11089.00 10861.00 10937.00 Dec.1997 11215.00 10975.00 11041.00 11299.00 11130.00 11170.00 11494.00 11107.00 11288.00 11665.00 11142.00 11413.00 11717.00 11198.00 11455.00 11718.00 11317.00 11477.00 Jun.1998 11828.00 11433.00 11568.00 11793.00 11442.00 11563.00 11429.00 11665.00 11304.00 11766.00 11999.00 11538.00 11948.00 11914.00 11682.00 12158.00 11985.00 11846.00 Dec.1998 12359.00 12014.00 11961.00 12460.00 12099.00 12044.00 12286.00 11811.00 11904.00 12469.00 11870.00 12034.00 12676.00 11900.00 12213.00 12569.00 11777.00 12130.00 Jun.1999 12617.00 11741.00 12220.00 12559.00 11708.00 12198.00 12530.00 11699.00 12188.00 12569.00 11804.00 12192.00 12666.00 11835.00 12302.00 12743.00 11828.00 12377.00 Dec.1999 12879.00 11756.00 12533.00 12723.00 11752.00 12434.00 12821.00 11899.00 12507.00 13078.00 12071.00 12716.00 13059.00 12012.00 12695.00 13041.00 12001.00 12666.00 Jun.2000 13242.00 12246.00 12875.00 13329.00 12375.00 12958.00 13532.00 12550.00 13124.00 13514.00 12598.00 13108.00 13517.00 12677.00 13067.00 13541.00 12894.00 12987.00 Dec.2000 13861.00 13147.00 13217.00 14074.00 13368.00 13461.00 13980.00 13506.00 13357.00 13896.00 13568.00 13277.00 14044.00 13466.00 13436.00 14086.00 13544.00 13506.00 Jun.2001 14039.00 13609.00 13494.00 14180.00 13948.00 13603.00 14198.00 14126.00 13614.00 14028.00 14256.00 13445.00 14199.00 14619.00 13621.00 14302.00 14379.00 13779.00 Dec.2001 14319.00 14266.00 13790.00 14300.00 14370.00 13776.00 14348.00 14492.00 13808.00 14395.00 14198.00 13884.00 14484.00 14473.00 13952.00 14533.00 14606.00 14001.00 Jun.2002 14376.00 14730.00 13864.00 14162.00 14907.00 13704.00 14314.00 15241.00 13835.00 14145.00 15569.00 13671.00 14251.00 15419.00 13778.00 14459.00 15429.00 13996.00 Dec.2002 14566.00 15837.00 14044.00 14534.00 15837.00 14005.00 14626.00 16119.00 14072.00 14672.00 16098.00 14137.00 15036.00 16271.00 14466.00 15429.00 16733.00 14752.00 Jun.2003 15500.00 16666.00 14841.00 15179.00 15967.00 14739.00 15358.00 16073.00 14827.00 15716.00 16582.00 15083.00 15799.00 16372.00 15192.00 15930.00 16416.00 15295.00 Dec.2003 16246.00 16579.00 15554.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year 5 Year Inception 5 Year Inception Lehman Brothers Government/Credit Bond Index* 4.68% 6.65% 7.49% 37.99% 65.79% Lifestyle Conservative Policy*+ 10.75% 5.39% 6.51% 30.02% 55.54% Lifestyle Conservative 280 Trust Series I 11.47% 5.62% 7.20% 31.45% 62.46% Lifestyle Conservative 280 Trust Series II+++ 11.46% 6.78% 13.50% Lifestyle Conservative 280 Trust Series III*** 5.33%
+ The Lifestyle Conservative Policy is a blend of returns (10% Russell 1000 Index, 5% MSCI EAFE Index, Index, 2% Lehman Brothers LT Government/Credit Bond Index, 30% Lehman Brothers 1-3 Year Government Index, 15% of the 3-month T-Bill, 8% Salomon Brothers High Yield Index and 5% NAREIT Index). The Lifestyle Conservative Composite Index was prepared by the adviser using Ibbotson Associates Software and Data. +++ Series II inception date: January 28, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Lifestyle Conservative 280 Trust Series I returned +11.47%, outperforming the +10.75% return of the Lifestyle Conservative Policy. ENVIRONMENT: Real estate securities performed well as the NAREIT Index posted a return of 38.47 for the year. On a market capitalization basis, small and mid caps outperformed large cap stocks. On a style basis, value-oriented stocks slightly outperformed their growth counterparts as the Russell 3000 Value Index returned 31.13% versus the Russell 3000 Growth Index return of 30.97%. Foreign equities generated positive returns as the MSCI EAFE Index returned 39.17%. Fixed income performance was poor with investment grade bonds performing relatively worse as returns ranged between 2.01% for short-term issues (per Lehman Brothers 1-3 year Gov't Index), and 5.88% for long-term issues (per Lehman Brothers Gov't/Credit Long Term Index). In contrast, high yield bonds experienced higher returns as the Citigroup High Yield Market Index rose 30.62% over the year The Lifestyle Conservative 280 Trust outperformed its benchmark for the year. The large cap component detracted from portfolio performance. The foreign and real estate components contributed to portfolio performance. The outperformance of the Investment Quality Bond, Strategic Bond and Total Return Trusts was offset by the underperformance of the High Grade and High Yield Trusts. OUTLOOK: While the near term outlook for stocks continues to be encouraging, the gains are most likely behind us. If a correction materializes, it is expected to be short-lived, since the US and global economies continue to recover. lxvii SMALL-MID CAP TRUST INVESTMENT OBJECTIVE To achieve long-term capital appreciation, with dividend & POLICIES: income as a secondary consideration by investing at least 80% of the portfolio's assets in small and mid cap companies. Small and mid cap companies are companies whose market cap does not exceed the market cap of the largest company included in the Russell 2500 Index at the time of purchase by the portfolio that Kayne Anderson Rudnick believes are of high quality. SUBADVISER: Kayne Anderson Rudnick Investment Management, LLC PORTFOLIO MANAGERS: Sandi Gleason and Robert Schwarzkopf INCEPTION DATE: July 16, 2001
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [SMALL-MID CAP TRUST PERFORMANCE GRAPH]
SMALL-MID CAP TRUST SERIES I RUSSELL 2500 INDEX ---------------------------- ------------------ Jun. 2001 10000.00 10000.00 9968.00 9642.00 9752.00 9326.00 Sep. 2001 8600.00 8119.00 8568.00 8539.00 9144.00 9230.00 Dec. 2001 9560.00 9747.00 9632.00 9626.00 9656.00 9458.00 Mar. 2002 10240.00 10112.00 10096.00 10086.00 10032.00 9791.00 Jun. 2002 9176.00 9239.00 8328.00 8136.00 8617.00 8161.00 Sep. 2002 7864.00 7514.00 7761.00 7759.00 8241.00 8393.00 Dec. 2002 7881.00 8310.00 7625.00 8089.00 7457.00 7895.00 Mar. 2003 7425.00 7970.00 7825.00 8680.00 8297.00 9533.00 Jun. 2003 8433.00 9715.00 8601.00 10238.00 8889.00 10712.00 Sep. 2003 8777.00 10566.00 9353.00 11401.00 9472.00 11830.00 Dec. 2003 9704.00 12092.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ending December 31, 2003 1 Year Inception Inception Russell 2500 Index* 45.51% 8.18% 20.92% Small-Mid Cap Trust Series I 23.15% -1.21% -2.96% Small-Mid Cap Trust Series II+++ 22.84% 15.95% 17.70% Small-Mid Cap Trust Series III*** 7.25% +++ Series II inception date: November 25, 2002. * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003.
PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the Small-Mid Cap Trust Series I returned +23.15%, underperforming the +45.51% return of the Russell 2500 Index. ENVIRONMENT: Unlike the period from the end of first quarter of 2000 until the fall of 2002, when investors sought refuge in high-quality companies, in 2003, investors went on a buying frenzy, seeking out the most beaten-down companies -- low-quality, speculative companies with low profitability and high debt. Because of the Small-Mid Cap Trust's focus on high-quality businesses, the Trust lagged the Index and its peer group despite generating attractive absolute returns. OUTLOOK: The year 2004 begins with the economy in its best shape since the recession that began in 2001. The annualized economic growth rate is expected to hold around 4% in 2004. Corporate earnings are projected to increase 10 to 15% in 2004 and foreign demand for U.S. exports will provide further stimulus. However, many also expect the Federal Reserve will raise interest rates. In 2004, we expect investors will begin to favor high-quality stocks with strong earnings growth and low debt -- such as the companies in the Trust -- and we expect these companies will again outperform. The Small-Mid Cap Trust continues to produce strong, consistent earnings growth from underleveraged balance sheets with the stocks selling at discount valuations. Lower quality companies can outperform the index in an accelerating economy emerging from a recession, as occurred in 2003. However, we expect the fusion of quality, growth and value to lead the market when the growth rate of the economic recovery subsides, which economists believe occurred in the fourth quarter of 2003. lxviii INTERNATIONAL EQUITY SELECT TRUST INVESTMENT OBJECTIVE & To seek long-term capital appreciation by investing, under POLICIES: normal market conditions, at least 80% of the portfolios net assets in equity securities, principally American Depository Receipts and common stocks of relatively large non-U.S. companies. These companies will have market capitalizations in the range of the Morgan Stanley Capital International (MSCI) Europe, Australia and Far East Index. Lazard believes these companies are undervalued based on their earnings, cash flow or asset values. SUBADVISER: Lazard Asset Management LLC PORTFOLIO MANAGERS: John R. Reinsberg, Michael A. Bennett, Gabrielle Boyle, Michael Powers INCEPTION DATE: July 16, 2001
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [INTERNATIONAL EQUITY SELECT TRUST PERFORMANCE GRAPH]
INTERNATIONAL EQUITY SELECT TRUST SERIES I MSCI EAFE INDEX --------------------------------- --------------- Jun. 2001 10000.00 10000.00 10072.00 9819.00 9800.00 9572.00 Sep. 2001 8888.00 8605.00 9008.00 8825.00 9424.00 9151.00 Dec. 2001 9616.00 9205.00 9168.00 8717.00 9376.00 8778.00 Mar. 2002 9816.00 9258.00 9968.00 9325.00 9936.00 9451.00 Jun. 2002 9744.00 9078.00 8712.00 8183.00 8760.00 8166.00 Sep. 2002 7848.00 7291.00 8449.00 7684.00 8665.00 8033.00 Dec. 2002 8496.00 7907.00 8048.00 7697.00 7888.00 7512.00 Mar. 2003 7872.00 7583.00 8664.00 8259.00 9056.00 9071.00 Jun. 2003 9096.00 9244.00 9088.00 9741.00 9119.00 10192.00 Sep. 2003 9383.00 10054.00 9775.00 10848.00 10183.00 11256.00 Dec. 2003 10872.00 11004.00
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception MSCI EAFE Index* 39.17% 4.04% 10.04% International Equity Select Trust Series I 27.97% 3.46% 8.72% International Equity Select Trust Series II+++ 27.68% 22.32% 24.98% International Equity Select Trust Series III*** 16.95%
+++ Series II inception date: November 25, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the International Equity Select Trust Series I returned +27.97%, underperforming the +39.17% return of the MSCI EAFE Index. ENVIRONMENT: The first two-and-a-half months of 2003, which saw a continuation of the previous year's bear market, proved an anomaly in an otherwise bull market year. In mid-March, just before the start of the second Gulf War, sentiment abruptly became very positive. Investors rotated into stocks that stood to gain the most from an improving economy; the stocks that benefited from this change in sentiment included highly leveraged and economically sensitive companies. Many of the greatest beneficiaries were those same lower-quality companies whose business models had been most questioned during the bear market. All sectors in the MSCI EAFE Index rose in 2003 after across-the-board declines in 2002. In addition, the Technology sector, which led 2002's decline, proved to be 2003's strongest performer. However, late in the year there were signs that the rebound in lower-quality stocks had begun to fade as investors began to refocus once again on individual companies' fundamentals. The portfolio generated strong gains in the Financial sector, as capital markets-oriented companies benefited from rising markets and the fading of the research scandals of 2002. The portfolio's Energy holdings also performed well, as oil prices have remained at historically high levels. In addition, the weakness in the U.S. dollar versus most major currencies bolstered returns for the dollar-based investor. The portfolio's sole Industrial holding rose strongly, but the relatively low weight in this economically-sensitive group detracted from relative returns. In addition, our substantial allocation to the Consumer Staples sector hurt returns, as investors sought out more economically-sensitive companies amid expectations for a robust recovery. In the past, market recoveries have frequently seen a period during which lower quality, more cyclical stocks have outperformed. During these initial stages of upswing, investors tend to seek out companies that stand to gain the most from an economic improvement. Frequently, these companies are the most volatile, debt-ridden, and cyclical stocks available. As we may already be seeing, however, investors tend to turn their attention back to the fundamentals underpinning stocks, including a company's ability to generate strong returns on its capital. We remain confident in the long-term prospects of the portfolio's holdings. lxix HIGH GRADE BOND TRUST INVESTMENT OBJECTIVE & To seek to maximize total return, consistent with the POLICIES: preservation of capital and prudent investment management by investing under normal market conditions, at least 80% of the portfolios net assets, in investment grade, fixed income securities of varying maturities. SUBADVISER: Allegiance Capital, Inc. PORTFOLIO MANAGER: William Mawhorter INCEPTION DATE: July 16, 2001
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [HIGH GRADE BOND TRUST PERFORMANCE GRAPH]
LEHMAN BROTHERS AGGREGATE BOND HIGH GRADE BOND TRUST SERIES I INDEX ------------------------------ ------------------------------ Jun. 2001 10000 10000 10112 10224 10224 10342 Sep. 2001 10432 10462 10696 10680 10400 10533 Dec. 2001 10321 10465 10387 10550 10511 10652 Mar. 2002 10263 10476 10495 10679 10553 10770 Jun. 2002 10702 10863 10958 10995 11181 11181 Sep. 2002 11463 11362 11372 11309 11173 11306 Dec. 2002 11457 11287 11416 11297 11598 11453 Mar. 2003 11549 11444 11595 11539 11927 11754 Jun. 2003 11852 11730 11320 11336 11378 11411 Sep .2003 11686 11713 11503 11604 11495 11632 Dec. 2003 11595 11751
PERFORMANCE TABLE**
Average Annual Total Return Cumulative Total Return Since Since Periods Ended December 31, 2003 1 Year Inception Inception Lehman Brothers Aggregate Bond Index* 4.11% 6.90% 17.51% High Grade Bond Trust Series I 1.20% 6.20% 15.95% High Grade Bond Trust Series II+++ 0.99% 2.51% 2.78% High Grade Bond Trust Series III*** 2.20%
+++ Series II inception date: November 25, 2002 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. Total return would have been lower had operating expenses not been reduced. *** Series III inception date: September 5, 2003 PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: For the year 2003, the High Grade Bond Trust Series I returned +1.20%, underperforming the +4.11% return of the Lehman Brothers Aggregate Bond Index. ENVIRONMENT: Depending on maturity, interest rates rose 0.3% to 0.6% during 2003. In order, Agency Mortgage-Backed Securities, U.S. Treasury and Agency securities had the lowest performance, while corporate bonds, particularly the Baa-rating category, had the best performance. With corporate bonds being the best performing sector, but excluded from use, and Government bonds underperforming, we made significant use of Aaa-rated Asset-Backed securities to boost returns. With corporate bonds representing 43% of the Lehman Government/Credit Index, but excluded from use in the portfolio, yet outperforming Treasuries 8.25% to 2.24% for 2003, the portfolio wasn't able to match the return of the Government/Credit Index. However, by employing intermediate maturity issues from January through early June, then switching to a combination of short and long maturity issues, coupled with the Aaa-rated ABS area, we were able to outperform a sector-equivalent Index target and Government-bond oriented managers. OUTLOOK: We expect the economic recovery will be very slow, with little business re-investment and job creation. Tied in with this expectation, interest rates are expected to rise during 2004, but in a relatively gradual fashion, and without the impetus of a Federal Reserve tightening action. We will maintain the portfolio in a short/long maturity combination structure as the yield curve flattens with rising interest rates. Corporate bond outperformance that took place from 2001 through 2003 is now over and will not be a performance impediment during 2004. We expect to heavily employ the Agency Mortgage-Backed Securities area, which is currently providing yields exceeding 2% above the level for comparable maturity Treasury issues. lxx AMERICAN GROWTH TRUST INVESTMENT OBJECTIVE & The American Growth Trust invests all of its assets in the POLICIES: master fund, Class 2 shares of the Growth Fund, a series of American Funds Insurance Series. The Growth Fund invests primarily in common stocks of companies that appear to offer superior opportunities for growth of capital. The Growth Fund may also invest up to 15% of its assets in equity securities of issuers domiciled outside the U.S. and Canada and not included in the S&P 500 Composite Index. SUBADVISER: American Funds Insurance Series PORTFOLIO MANAGERS: Gordon Crawford, James E. Drasdo & Donald D. O'Neal INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [AMERICAN GROWTH TRUST PERFORMANCE GRAPH]
AMERICAN GROWTH TRUST SERIES II RUSSELL 1000 GROWTH INDEX ------------------------------- ------------------------- Apr. 2003 10000.00 10000.00 May 2003 10592.00 10499.00 Jun. 2003 10688.00 10644.00 Jul. 2003 10929.00 10909.00 Aug. 2003 11393.00 11180.00 Sep. 2003 10985.00 11060.00 Oct. 2003 11778.00 11681.00 Nov. 2003 11913.00 11804.00 Dec. 2003 12328.00 12212.00
PERFORMANCE TABLE**
Cumulative Total Return Since Periods Ended December 31, 2003 Inception Russell 1000 Growth Index* 22.12% American Growth Trust Series II+ 23.28% American Growth Trust Series I+++ 10.62%
+ Series II inception date: May 5, 2003 +++ Series I inception date: July 9, 2003 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: Since inception on May 5, 2003, the American Growth Trust Series II returned +23.28%, outperforming the +22.12% return of the Russell 1000 Growth Index. ***ENVIRONMENT: The Fund handily outpaced the S&P 500 Index, which rose 28.70%. The year didn't begin with great hope. War with Iraq was on the horizon, and the U.S. economy showed few signs of life. But when the initial phase of hostilities in Iraq ended quickly and the economy began to recover, the stage was set for a rebound. Growth stocks, such as those that make up most of the portfolio, typically are more volatile than the broader market, and when the market recovered, many growth stocks led the rebound. During 2003, the stocks of semiconductors and semiconductor equipment and media companies, which made up 25% of the portfolio at yearend, rebounded after losing ground in the long market slump. Both technology and media were major industry concentrations during 2003, and the higher prices for their stocks helped the portfolio. Our holdings in oil stocks and some basic industries, such as metals, also helped. *** The portfolio commentary described above is for the American Funds Insurance Series Growth Fund Class 2 shares and is for the year ended December 31, 2003. The American Funds Insurance Series Growth Fund Class 2 is the underlying investment for the Manufacturers Investment Trust American Growth Trust. lxxi AMERICAN INTERNATIONAL TRUST INVESTMENT OBJECTIVE & To seek to make the shareholders investment grow. The POLICIES: American International Trust invests all of its assets in the master fund, Class 2 shares of the International Fund, a series of American Funds Insurance Series. The International Fund invests primarily in common stocks of companies located outside the United States. SUBADVISER: American Funds Insurance Series PORTFOLIO MANAGERS: Alwyn W. Heong, Darcy B. Kopcho and Robert W. Lovelace INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [AMERICAN INTERNATIONAL TRUST PERFORMANCE GRAPH]
AMERICAN INTERNATIONAL TRUST SERIES II MSCI EAFE INDEX ----------------------------------- --------------- Apr. 2003 10000.00 10000.00 May 2003 10336.00 10615.00 Jun. 2003 10560.00 10878.00 Jul. 2003 10889.00 11143.00 Aug. 2003 11424.00 11414.00 Sep. 2003 11648.00 11768.00 Oct. 2003 12401.00 12502.00 Nov .2003 12561.00 12782.00 Dec. 2003 13328.00 13781.00
PERFORMANCE TABLE**
Cumulative Total Return Since Periods Ended December 31, 2003 Inception MSCI EAFE Index* 37.81% American International Trust Series II+ 33.28% American International Trust Series I+++ 21.04%
+ Series II inception date: May 5, 2003 +++ Series I inception date: July 9, 2003 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: Since inception on May 5, 2003, the American International Trust Series II returned +33.28%, underperforming the +37.81% return of the MSCI EAFE Index. ***ENVIRONMENT: Markets in Asia and Europe gained ground in 2003, as did the Fund, although it trailed its benchmark. The portfolio benefited significantly from the decline of the U.S. dollar. The Fund's holdings in Japan, accounting for 18% of total assets at year-end, helped as that country's stock market showed signs of ending its 13-year slump. Europe remained the portfolio's largest area of concentration in 2003, and the Fund benefited from the strength of the markets there. London's FTSE 100 Index gained 13.6% and Germany's DAX Index rose 37.1% when measured in local currencies. While markets in Asia and Europe were strong, the U.S. dollar's weakness was one of the biggest factors in the portfolio's rise. The U.S. dollar lost 20% against the euro and 10% against the Japanese yen during 2003. The 24.5% gain of Japan's Nikkei 225 Stock Average turned into a 37.7% return when translated into U.S. dollars, and Germany's DAX Index's 37.1% gain translated into a 64.0% return in dollars. *** The portfolio commentary described above is for the American Funds Insurance Series International Fund Class 2 shares and is for the year ended December 31, 2003. The American Funds Insurance Series International Fund Class 2 is the underlying investment for the Manufacturers Investment Trust American International Trust. lxxii AMERICAN GROWTH-INCOME TRUST INVESTMENT OBJECTIVE & The American Growth-Income Trust invests all of its assets POLICIES: in the master fund, Class 2 shares of the Growth -- Income Fund, a series of American Funds Insurance Series. The Growth -- Income Fund invests primarily in common stocks or other securities which demonstrate the potential for appreciation and/or dividends. The fund may invest a portion of its assets in securities of issuers domiciled outside the U.S. and not included in the Standard & Poor's 500 Composite Index. SUBADVISER: American Funds Insurance Series PORTFOLIO MANAGERS: Alan N. Berro, James K. Dunton, Claudia P. Huntington, Robert G. O'Donnell & Ross Sappenfield INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [AMERICAN GROWTH-INCOME TRUST PERFORMANCE GRAPH]
AMERICAN GROWTH-INCOME TRUST SERIES II RUSSELL 1000 VALUE INDEX ---------------------------- ------------------------ Apr. 2003 10000.00 10000.00 May 2003 10568.00 10646.00 Jun. 2003 10680.00 10779.00 Jul. 2003 10896.00 10939.00 Aug. 2003 11255.00 11110.00 Sep. 2003 11080.00 11001.00 Oct. 2003 11680.00 11674.00 Nov. 2003 11865.00 11833.00 Dec. 2003 12424.00 12562.00
PERFORMANCE TABLE**
Cumulative Total Return Since Periods Ended December 31, 2003 Inception Russell 1000 Value Index* 25.62% American Growth-Income Trust Series II+ 24.24% American Growth-Income Trust Series I+++ 12.84%
+ Series II inception date: May 5, 2003 +++ Series I inception date: July 9, 2003 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: Since inception on May 5, 2003, the American Growth-Income Trust Series II returned +24.24%, underperforming the +25.62% return of the Russell 1000 Value Index. ***ENVIRONMENT: The groundwork for the strong return was laid much earlier. During the long, severe market downturn, the prices of many stocks issued by well-established companies fell to attractive levels. The portfolio invested in many of these companies and was rewarded when their stock prices rebounded. The portfolio's holdings are diversified among a variety of industry groups. That diversity helped fuel our gain in 2003. Investments in diversified Financial Services and Technology holdings were especially beneficial to the Trust's results for the year just ended. At the end of 2003, the portfolio's cash position was 12.8%, essentially unchanged from 12.3% of assets at the end of 2002. *** The portfolio commentary described above is for the American Funds Insurance Series Growth-Income Fund Class 2 shares and is for the year ended December 31, 2003. The American Funds Insurance Series Growth-Income Fund Class 2 is the underlying investment for the Manufacturers Investment Trust American Growth-Income Trust. lxxiii AMERICAN BLUE CHIP INCOME AND GROWTH TRUST INVESTMENT OBJECTIVE & To seek to produce income exceeding the average yield on POLICIES: U.S. stock generally (as represented by the average yield on the Standard & Poor's 500 Composite Index) and to provide an opportunity for growth of principal consistent with sound common stock investing. The American Blue Chip Income and Growth Trust invests all of its assets in the master fund, Class 2 shares of the Blue Chip Income and Growth Fund, a series of American Funds Insurance Series. The Blue Chip Income and Growth Fund invests primarily in common stocks of larger, more established companies based in the U.S. with market capitalizations of $4 billion and above. The fund may also invest up to 10% of its asset in common stocks of larger, non-U.S. companies, so long as they are listed or traded in the U.S. The fund will invest, under normal market conditions, at least 90% of its assets in equity securities. SUBADVISER: American Funds Insurance Series PORTFOLIO MANAGERS: Alan N. Berro, James K. Dunton & Ross Sappenfield INCEPTION DATE: May 5, 2003
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES [AMERICAN BLUE CHIP INCOME AND GROWTH TRUST PERFORMANCE GRAPH]
AMERICAN BLUE CHIP INCOME AND GROWTH TRUST SERIES II RUSSELL 1000 VALUE INDEX ----------------------------- ------------------------ Apr. 2003 10000.00 10000.00 May 2003 10472.00 10646.00 Jun. 2003 10617.00 10779.00 Jul. 2003 10865.00 10939.00 Aug. 2003 11177.00 11110.00 Sep. 2003 11073.00 11001.00 Oct. 2003 11641.00 11674.00 Nov. 2003 11689.00 11833.00 Dec. 2003 12352.00 12562.00
PERFORMANCE TABLE**
Cumulative Total Return Since Periods Ended December 31, 2003 Inception Russell 1000 Value Index* 25.62% American Blue Chip Income and Growth Trust Series II+ 23.52% American Blue Chip Income and Growth Trust Series I+++ 13.18%
+ Series II inception date: May 5, 2003 +++ Series I inception date: July 9, 2003 * All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust. ** Performance does not reflect any insurance related charges. If these charges were reflected, performance would be lower. Past performance does not predict future results. PORTFOLIO MANAGER'S COMMENTARY PERFORMANCE: Since inception on May 5, 2003, the American Blue Chip Income and Growth Trust Series II returned +23.52%, underperforming the +25.62% return of the Russell 1000 Value Index. ***ENVIRONMENT: The Fund was launched on July 5, 2001, about halfway through the longest and most severe market downturn since the 1920s. The portfolio is designed to have at least 90% of its assets invested in high-quality equities at all times. Because it was launched in the midst of a market downturn, the initial portfolio was assembled when equity prices were declining or already low. When the market rallied this past year, many of the investments made over the Fund's short lifetime rose in value. Over the last year, the portfolio has experienced rapid growth. During 2003, the portfolio's assets tripled to more than $1.6 billion, requiring us to pursue investments in a rapidly rising stock market. We are meeting this challenge by relying on fundamental research to find good opportunities. At the end of 2003, the portfolio held 8.7% in cash, an increase from 7.1% a year earlier. *** The portfolio commentary described above is for the American Funds Insurance Series Blue Chip Income and Growth Fund Class 2 shares and is for the year ended December 31, 2003. The American Funds Insurance Series Blue Chip Income and Growth Fund Class 2 is the underlying investment for the Manufacturers Investment Trust American Blue Chip Income and Growth Trust. lxxiv REPORT OF INDEPENDENT AUDITORS To the Board of Trustees and Shareholders of Manufacturers Investment Trust: - In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of 72 of the portfolios (identified in Note 1) comprising Manufacturers Investment Trust at December 31, 2003, the results of each of their operations, the changes in each of their net assets and the financial highlights for the periods indicated in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Manufacturers Investment Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2003 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. /s/ PRICEWATERHOUSECOOPERS LLP Boston, Massachusetts February 23, 2004 1 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
SCIENCE & PACIFIC RIM HEALTH EMERGING TECHNOLOGY EMERGING MARKETS SCIENCES GROWTH TRUST TRUST TRUST TRUST --------------- ---------------- ------------- ----------- ASSETS Investments in securities, at value $ 620,713,907 $ 86,780,270 $ 156,279,576 $ 9,151,073 Securities on loan, at value (Note 2) 31,806,166 17,931,267 - 2,283,513 Repurchase agreements, at value 283,000 553,000 432,000 429,000 --------------- ------------- ------------- ----------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investment) 652,803,073 105,264,537 156,711,576 11,863,586 Cash 1,480 543 655 - Foreign currency - 110,536 - - Receivables: Investments sold 5,379,133 - 932,114 590,030 Fund shares sold 268,362 181,987 58,617 8,255 Dividends and interest 158,782 62,996 7,529 2,377 Foreign tax withholding reclaims 2,691 - 1,475 - Other assets 2,806 317 672 26 --------------- ------------- ------------- ----------- TOTAL ASSETS 658,616,327 105,620,916 157,712,638 12,464,274 --------------- ------------- ------------- ----------- LIABILITIES Payables: Investments purchased 1,462,256 - 877,258 812,740 Fund shares redeemed 1,170,281 216,338 310,429 25,265 Dividend and interest withholding tax 4,429 6,113 - - Deferred tax liability - 210,766 - - Due to adviser 779 906 147 964 Due to custodian - - - 1,442 Other payables and accrued expenses 86,448 35,940 29,562 20,368 Collateral for securities lending 32,649,759 18,941,969 - 2,345,485 Written options outstanding, at value (Note 3) - - 1,713,930 - --------------- ------------- ------------- ----------- TOTAL LIABILITIES 35,373,952 19,412,032 2,931,326 3,206,264 --------------- ------------- ------------- ----------- NET ASSETS $ 623,242,375 $ 86,208,884 $ 154,781,312 $ 9,258,010 =============== ============= ============= =========== NET ASSETS CONSIST OF: Undistributed net investment income (loss) - $ 386,136 - - Accumulated undistributed net realized gain (loss) on investments, options, foreign currency and forward foreign currency contracts ($ 1,111,785,931) (14,144,590) ($ 6,507,820) $ 241,257 Unrealized appreciation (depreciation) on: Investments 105,731,684 7,595,773 21,761,206 657,847 Written options contracts - - 623,368 - Foreign currency and forward foreign currency contracts 795 511 100 - Capital shares at par value of $.01 545,167 106,027 115,653 5,883 Additional paid-in capital 1,628,750,660 92,265,027 138,788,805 8,353,023 --------------- ------------- ------------- ----------- NET ASSETS $ 623,242,375 $ 86,208,884 $ 154,781,312 $ 9,258,010 =============== ============= ============= =========== Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 547,071,389 $ 97,457,998 $ 134,950,370 $11,205,739 =============== ============= ============= =========== Investments in foreign currency, at identified cost - $ 110,185 - - =============== ============= ============= =========== NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 557,622,950 $ 66,611,689 $ 100,828,608 $ 3,177,992 =============== ============= ============= =========== Shares Outstanding 48,768,550 8,188,074 7,527,600 201,781 --------------- ------------- ------------- ----------- Net asset value, offering and redemption price per share $ 11.43 $ 8.14 $ 13.39 $ 15.75 =============== ============= ============= =========== SERIES II SHARES: Net Assets at value $ 65,613,150 $ 19,594,250 $ 53,915,902 $ 6,079,913 =============== ============= ============= =========== Shares Outstanding 5,747,596 2,414,279 4,034,976 386,541 --------------- ------------- ------------- ----------- Net asset value, offering and redemption price per share $ 11.42 $ 8.12 $ 13.36 $ 15.73 =============== ============= ============= =========== SERIES III SHARES+: Net Assets at value $ 6,275 $ 2,945 $ 36,802 $ 105 =============== ============= ============= =========== Shares Outstanding 549 362 2,748 7 --------------- ------------- ------------- ----------- Net asset value, offering and redemption price per share $ 11.43 $ 8.14 $ 13.39 $ 15.75 =============== ============= ============= ===========
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 2 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
AGGRESSIVE EMERGING SMALL COMPANY DYNAMIC GROWTH SMALL COMPANY BLEND GROWTH TRUST TRUST TRUST TRUST ------------- ------------- ------------- ------------- ASSETS Investments in securities, at value $ 293,996,492 $ 449,900,665 $ 203,163,193 $ 177,549,071 Securities on loan, at value (Note 2) 54,032,953 63,709,985 47,565,046 21,333,311 Repurchase agreements, at value 9,116,000 34,689,000 7,399,000 4,990,000 ------------- ------------- ------------- ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 357,145,445 548,299,650 258,127,239 203,872,382 Cash 486 907 363 260 Receivables: Investments sold 1,447,218 1,732,628 1,355,856 - Fund shares sold 99,588 423,617 192,014 - Dividends and interest 40,468 90,470 193,566 130,702 Foreign tax withholding reclaims - - 534 - Other assets 1,616 2,192 910 595 ------------- ------------- ------------- ------------- TOTAL ASSETS 358,734,821 550,549,464 259,870,482 204,003,939 ------------- ------------- ------------- ------------- LIABILITIES Payables: Investments purchased 1,939,038 92,716 254,557 8,913 Fund shares redeemed - 1,177,795 152,151 130,828 Dividend and interest withholding tax - 266 291 - Due to adviser - 868 - - Other payables and accrued expenses 43,861 53,667 31,990 37,482 Collateral for securities lending 55,327,831 64,954,221 48,906,716 21,844,442 Written options outstanding, at value (Note 3) 18,075 - - - ------------- ------------- ------------- ------------- TOTAL LIABILITIES 57,328,805 66,279,533 49,345,705 22,021,665 ------------- ------------- ------------- ------------- NET ASSETS $ 301,406,016 $ 484,269,931 $ 210,524,777 $ 181,982,274 ============= ============= ============= ============= NET ASSETS CONSIST OF: Accumulated undistributed net realized gain (loss) on investments, options, foreign currency and forward foreign currency contracts ($ 158,003,438) ($ 82,991,980) ($ 45,687,924) ($ 178,683,431) Unrealized appreciation (depreciation) on: Investments 58,756,209 77,436,463 22,864,145 29,154,314 Written options contracts 11,497 - - - Foreign currency and forward foreign currency contracts - 21 7 - Capital shares at par value of $.01 226,984 187,927 184,694 413,642 Additional paid-in capital 400,414,764 489,637,500 233,163,855 331,097,749 ------------- ------------- ------------- ------------- NET ASSETS $ 301,406,016 $ 484,269,931 $ 210,524,777 $ 181,982,274 ============= ============= ============= ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 298,389,236 $ 470,863,187 $ 235,263,094 $ 174,718,068 ============= ============= ============= ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 261,138,368 $ 401,432,914 $ 150,800,819 $ 140,190,488 ============= ============= ============= ============= Shares Outstanding 19,659,390 15,572,560 13,223,071 31,850,605 ------------- ------------- ------------- ------------- Net asset value, offering and redemption price per share $ 13.28 $ 25.78 $ 11.40 $ 4.40 ============= ============= ============= ============= SERIES II SHARES: Net Assets at value $ 40,267,449 $ 82,836,360 $ 59,723,958 $ 41,791,786 ============= ============= ============= ============= Shares Outstanding 3,038,975 3,220,129 5,246,355 9,513,546 ------------- ------------- ------------- ------------- Net asset value, offering and redemption price per share $ 13.25 $ 25.72 $ 11.38 $ 4.39 ============= ============= ============= ============= SERIES III SHARES+: Net Assets at value $ 199 $ 657 - - ============= ============= ============= ============= Shares Outstanding 15 25 - - ------------- ------------- ------------- ------------- Net asset value, offering and redemption price per share $ 13.28 $ 25.78 - - ============= ============= ============= =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 3 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
MID CAP NATURAL ALL CAP STRATEGIC STOCK RESOURCES GROWTH OPPORTUNITIES TRUST TRUST TRUST TRUST ------------- ------------- ------------- --------------- ASSETS Investments in securities, at value $ 358,933,365 $ 159,019,561 $ 590,816,432 $ 554,169,420 Securities on loan, at value (Note 2) 52,774,717 14,960,183 30,462,631 73,812,128 Repurchase agreements, at value 19,099,000 8,556,000 15,066,000 5,150,000 ------------- ------------- ------------- --------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 430,807,082 182,535,744 636,345,063 633,131,548 Cash 263,107 280 573 938 Foreign currency - 70,797 - 1,283 Receivables: Forward foreign currency contracts (Note 8) - 5,836 - - Investments sold - - 1,860,524 1,848,131 Fund shares sold 527,405 376,457 306,131 13,672 Dividends and interest 33,492 137,342 271,420 528,979 Foreign tax withholding reclaims - 11,871 - - Other assets 1,649 686 3,217 3,323 ------------- ------------- ------------- --------------- TOTAL ASSETS 431,632,735 183,139,013 638,786,928 635,527,874 ------------- ------------- ------------- --------------- LIABILITIES Payables: Forward foreign currency contracts (Note 8) - - - 2,011 Investments purchased 1,033,187 2,790,948 - 2,155,165 Fund shares redeemed - 12,129 91,137 846,464 Dividend and interest withholding tax - 16,901 3,702 8,371 Due to adviser 956 950 - - Other payables and accrued expenses 40,327 28,995 66,813 75,106 Collateral for securities lending 54,062,633 15,306,937 31,142,453 75,581,538 ------------- ------------- ------------- --------------- TOTAL LIABILITIES 55,137,103 18,156,860 31,304,105 78,668,655 ------------- ------------- ------------- --------------- NET ASSETS $ 376,495,632 $ 164,982,153 $ 607,482,823 $ 556,859,219 ============= ============= ============= =============== NET ASSETS CONSIST OF: Undistributed net investment income (loss) - $ 219,320 - $ 474,838 Accumulated undistributed net realized gain (loss) on investments, options, foreign currency and forward foreign currency contracts ($ 30,021,509) 4,834,228 ($ 298,058,961) (672,929,984) Unrealized appreciation (depreciation) on: Investments 66,542,160 39,255,276 102,955,792 73,545,556 Foreign currency and forward foreign currency contracts - (10) 1,476 435 Capital shares at par value of $.01 317,486 91,715 421,792 571,766 Additional paid-in capital 339,657,495 120,581,624 802,162,724 1,155,196,608 ------------- ------------- ------------- --------------- NET ASSETS $ 376,495,632 $ 164,982,153 $ 607,482,823 $ 556,859,219 ============= ============= ============= =============== Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 364,264,922 $ 143,280,468 $ 533,389,271 $ 559,585,992 ------------- ------------- ------------- --------------- Investments in foreign currency, at identified cost - $ 70,729 - $ 1,271 ============= ============= ============= =============== NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 260,190,551 $ 90,098,782 $ 520,180,870 $ 533,891,486 ============= ============= ============= =============== Shares Outstanding 21,923,395 5,005,717 36,105,874 54,811,707 ------------- ------------- ------------- --------------- Net asset value, offering and redemption price per share $ 11.87 $ 18.00 $ 14.41 $ 9.74 ============= ============= ============= =============== SERIES II SHARES: Net Assets at value $ 116,299,197 $ 74,881,524 $ 87,300,120 $ 22,967,733 ============= ============= ============= =============== Shares Outstanding 9,824,682 4,165,686 6,073,195 2,364,924 ------------- ------------- ------------- --------------- Net asset value, offering and redemption price per share $ 11.84 $ 17.98 $ 14.37 $ 9.71 ============= ============= ============= =============== SERIES III SHARES+: Net Assets at value $ 5,884 $ 1,847 $ 1,833 - ============= ============= ============= =============== Shares Outstanding 496 103 127 - ------------- ------------- ------------- --------------- Net asset value, offering and redemption price per share $ 11.87 $ 18.00 $ 14.41 - ============= ============= ============= ===============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 4 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
FINANCIAL INTERNATIONAL INTERNATIONAL SERVICES STOCK OVERSEAS SMALL CAP TRUST TRUST TRUST TRUST ------------ ------------- ------------- ------------- ASSETS Investments in securities, at value $ 88,690,961 $ 367,330,706 $ 460,962,389 $ 298,978,824 Securities on loan, at value (Note 2) 1,251,049 87,983,460 48,723,721 25,552,353 Repurchase agreements, at value - 2,255,000 4,572,000 20,765,000 ------------ ------------- ------------- ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 89,942,010 457,569,166 514,258,110 345,296,177 Cash 50 95 75,315 274 Foreign currency - 24,041,101 691,850 2,256,824 Receivables: Forward foreign currency contracts (Note 8) - - 2,661 102 Investments sold - - 4,139,509 - Fund shares sold 9,083 39,266 10,753 693 Dividends and interest 136,006 361,433 517,162 354,087 Foreign tax withholding reclaims 17,587 44,754 21,383 50,514 Other assets 383 1,934 1,694 900 ------------ ------------- ------------- ------------- TOTAL ASSETS 90,105,119 482,057,749 519,718,437 347,959,571 ------------ ------------- ------------- ------------- LIABILITIES Payables: Forward foreign currency contracts (Note 8) - - 17,011 53 Investments purchased - - 7,526,689 44,787 Fund shares redeemed 606 707,276 640,171 1,159,850 Dividend and interest withholding tax - 28,068 45,400 38,881 Deferred tax liability - - - 411,458 Due to adviser 965 - - 834 Other payables and accrued expenses 18,836 72,495 91,118 61,038 Collateral for securities lending 1,280,490 92,492,304 51,204,315 26,976,661 ------------ ------------- ------------- ------------- TOTAL LIABILITIES 1,300,897 93,300,143 59,524,704 28,693,562 ------------ ------------- ------------- ------------- NET ASSETS $ 88,804,222 $ 388,757,606 $ 460,193,733 $ 319,266,009 ============ ============= ============= ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) $ 327,050 $ 3,486,712 $ 1,840,993 $ 425,381 Accumulated undistributed net realized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts (2,266,921) (117,176,878) (177,980,311) (124,298,138) Unrealized appreciation (depreciation) on: Investments 13,032,665 70,829,671 80,061,613 85,167,817 Foreign currency and forward foreign currency contracts 1,752 243,444 5,162 58,503 Capital shares at par value of $.01 69,855 401,314 481,064 219,330 Additional paid-in capital 77,639,821 430,973,343 555,785,212 357,693,116 ------------ ------------- ------------- ------------- NET ASSETS $ 88,804,222 $ 388,757,606 $ 460,193,733 $ 319,266,009 ============ ============= ============= ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 76,909,345 $ 386,739,495 $ 434,196,497 $ 259,716,902 ------------ ------------- ------------- ------------- Investments in foreign currency, at identified cost - $ 23,807,696 $ 857,522 $ 2,203,786 ============ ============= ============= ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 52,467,074 $ 289,226,738 $ 364,178,643 $ 245,602,762 ============ ============= ============= ============= Shares Outstanding 4,121,374 29,847,519 38,050,265 16,867,767 ------------ ------------- ------------- ------------- Net asset value, offering and redemption price per share $ 12.73 $ 9.69 $ 9.57 $ 14.56 ============ ============= ============= ============= SERIES II SHARES: Net Assets at value $ 36,336,848 $ 99,528,531 $ 96,010,188 $ 73,654,714 ============ ============= ============= ============= Shares Outstanding 2,864,098 10,283,689 10,055,664 5,064,671 ------------ ------------- ------------- ------------- Net asset value, offering and redemption price per share $ 12.69 $ 9.68 $ 9.55 $ 14.54 ============ ============= ============= ============= SERIES III SHARES+: Net Assets at value $ 300 $ 2,337 $ 4,902 $ 8,533 ============ ============= ============= ============= Shares Outstanding 24 241 512 586 ------------ ------------- ------------- ------------- Net asset value, offering and redemption price per share $ 12.73 $ 9.69 $ 9.57 $ 14.56 ============ ============= ============= =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 5 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
INTERNATIONAL QUANTITATIVE MID CAP GLOBAL VALUE MID CAP CORE EQUITY TRUST TRUST TRUST TRUST ------------- ------------- ----------- ------------- ASSETS Investments in securities, at value $ 395,176,559 $ 119,408,373 $41,164,792 $ 343,745,520 Securities on loan, at value (Note 2) 44,130,352 8,195,262 1,916,983 6,449,879 Repurchase agreements, at value 15,384,000 3,415,000 10,080,000 70,947,000 ------------- ------------- ----------- ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 454,690,911 131,018,635 53,161,775 421,142,399 Cash 883 154 38 18,629,371 Foreign currency 12 - - 1,398,227 Receivables: Forward foreign currency contracts (Note 8) 1,011 - - 159,584 Investments sold 48,660 4,389,438 - 2,185,464 Fund shares sold 72,679 160,352 134,299 100 Dividends and interest 627,113 22,365 31,251 625,160 Interest on swap agreement - 3,563 - - Foreign tax withholding reclaims 83,925 - - 5,950 Other assets 1,999 563 184 2,272 ------------- ------------- ----------- ------------- TOTAL ASSETS 455,527,193 135,595,070 53,327,547 444,148,527 ------------- ------------- ----------- ------------- LIABILITIES Payables: Forward foreign currency contracts (Note 8) 15 - - 136,019 Investments purchased 2,194,542 8,997,670 2,007,671 53,540,684 Fund shares redeemed 930,749 492,435 - 737,579 Dividend and interest withholding tax 79,260 - - 64,189 Due to adviser - - - 965 Other payables and accrued expenses 74,388 22,151 19,637 75,008 Collateral for securities lending 46,428,194 8,414,534 1,962,261 6,788,101 ------------- ------------- ----------- ------------- TOTAL LIABILITIES 49,707,148 17,926,790 3,989,569 61,342,545 ------------- ------------- ----------- ------------- NET ASSETS $ 405,820,045 $ 117,668,280 $49,337,978 $ 382,805,982 ============= ============= =========== ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) $ 5,842,037 - - $ 6,493,268 Accumulated undistributed net realized gain (loss) on investments, foreign currency and forward foreign currency contracts (31,672,232) ($ 38,760,192) $ 541,771 (97,109,917) Unrealized appreciation (depreciation) on: Investments 69,187,966 25,576,127 5,971,693 22,946,344 Foreign currency and forward foreign currency contracts 29,341 - - (31,319) Capital shares at par value of $.01 329,539 107,655 32,229 291,992 Additional paid-in capital 362,103,394 130,744,690 42,792,285 450,215,614 ------------- ------------- ----------- ------------- NET ASSETS $ 405,820,045 $ 117,668,280 $49,337,978 $ 382,805,982 ============= ============= =========== ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 385,502,945 $ 105,442,508 $47,190,082 $ 398,196,055 ------------- ------------- ----------- ------------- Investments in foreign currency, at identified cost $ 12 - - $ 134,392 ============= ============= =========== ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 267,453,737 $ 110,382,210 $19,539,449 $ 363,133,834 ============= ============= =========== ============= Shares Outstanding 21,698,737 10,097,149 1,275,428 27,693,823 ------------- ------------- ----------- ------------- Net asset value, offering and redemption price per share $ 12.33 $ 10.93 $ 15.32 $ 13.11 ============= ============= =========== ============= SERIES II SHARES: Net Assets at value $ 138,364,966 $ 7,286,070 $29,798,359 $ 19,672,039 ============= ============= =========== ============= Shares Outstanding 11,255,029 668,405 1,947,461 1,505,352 ------------- ------------- ----------- ------------- Net asset value, offering and redemption price per share $ 12.29 $ 10.90 $ 15.30 $ 13.07 ============= ============= =========== ============= SERIES III SHARES+: Net Assets at value $ 1,342 - $ 170 $ 109 ============= ============= =========== ============= Shares Outstanding 109 - 11 8 ------------- ------------- ----------- ------------- Net asset value, offering and redemption price per share $ 12.33 - $ 15.32 $ 13.11 ============= ============= =========== =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 6 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
STRATEGIC CAPITAL QUANTITATIVE ALL CAP GROWTH APPRECIATION ALL CAP CORE TRUST TRUST TRUST TRUST ------------- ------------- ------------ ------------- ASSETS Investments in securities, at value $ 261,155,311 $ 185,717,624 $4,661,457 $ 258,361,519 Securities on loan, at value (Note 2) 11,334,525 6,917,821 1,082,260 7,694,749 Repurchase agreements, at value - 8,872,000 157,000 16,421,000 -------------- -------------- ---------- ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 272,489,836 201,507,445 5,900,717 282,477,268 Cash 589 672 1,233 247 Receivables: Investments sold 2,179,821 1,400,195 134,252 - Fund shares sold 227,737 104,223 690 - Dividends and interest 166,805 114,864 4,313 208,737 Foreign tax withholding reclaims 156 67 13 - Other assets 1,193 926 22 1,560 -------------- -------------- ---------- ------------- TOTAL ASSETS 275,066,137 203,128,392 6,041,240 282,687,812 -------------- -------------- ---------- ------------- LIABILITIES Payables: Investments purchased 1,758,765 2,852,043 232,460 - Fund shares redeemed - 103,586 1,245 166,510 Variation margin for open futures contracts - - - 162,750 Dividend and interest withholding tax 609 1,851 - - Due to adviser 956 - 965 - Other payables and accrued expenses 35,664 31,007 15,462 42,754 Collateral for securities lending 11,640,290 7,070,818 1,108,592 7,899,277 -------------- -------------- ---------- ------------- TOTAL LIABILITIES 13,436,284 10,059,305 1,358,724 8,271,291 -------------- -------------- ---------- ------------- NET ASSETS $ 261,629,853 $ 193,069,087 $4,682,516 $ 274,416,521 ============== ============== ========== ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) - - - $ 1,210,378 Accumulated undistributed net realized gain (loss) on investments, futures, options, foreign currency and forward foreign currency contracts ($ 21,527,708) ($ 19,781,028) $ 166,213 (335,424,736) Unrealized appreciation (depreciation) on: Investments 29,689,125 30,271,581 494,380 32,946,079 Futures contracts - - - 126,765 Capital shares at par value of $.01 260,268 240,410 3,111 200,087 Additional paid-in capital 253,208,168 182,338,124 4,018,812 575,357,948 -------------- -------------- ---------- ------------- NET ASSETS $ 261,629,853 $ 193,069,087 $4,682,516 $ 274,416,521 ============== ============== ========== ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 242,800,711 $ 171,235,864 $5,406,337 $ 249,531,189 ============== ============== ========== ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 175,019,536 $ 120,859,429 $2,140,558 $ 264,170,155 ============== ============== ========== ============= Shares Outstanding 17,399,927 15,035,997 142,192 19,259,981 -------------- -------------- ---------- ------------- Net asset value, offering and redemption price per share $ 10.06 $ 8.04 $ 15.05 $ 13.72 ============== ============== ========== ============= SERIES II SHARES: Net Assets at value $ 86,608,744 $ 72,208,098 $2,541,847 $ 10,246,366 ============== ============== ========== ============= Shares Outstanding 8,626,695 9,004,783 168,921 748,698 -------------- -------------- ---------- ------------- Net asset value, offering and redemption price per share $ 10.04 $ 8.02 $ 15.05 $ 13.69 ============== ============== ========== ============= SERIES III SHARES+: Net Assets at value $ 1,573 $ 1,560 $ 111 - ============== ============== ========== ============= Shares Outstanding 156 194 7 - -------------- -------------- ---------- ------------- Net asset value, offering and redemption price per share $ 10.06 $ 8.04 $ 15.05 - ============== ============== ========== =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 7 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
LARGE CAP QUANTITATIVE BLUE CHIP U.S. LARGE GROWTH EQUITY GROWTH CAP TRUST TRUST TRUST TRUST ------------- ------------- --------------- ------------- ASSETS Investments in securities, at value $ 489,139,753 $ 272,050,935 $ 1,495,791,558 $ 544,269,544 Securities on loan, at value (Note 2) 19,510,316 14,342,499 98,061,165 64,631,229 Repurchase agreements, at value 11,646,000 3,465,000 679,000 15,849,000 ------------- ------------- --------------- ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 520,296,069 289,858,434 1,594,531,723 624,749,773 Cash 433 443 3,653 896 Receivables: Forward foreign currency contracts (Note 8) 7,136 - - - Investments sold - 2,275,799 3,396,330 119,756 Fund shares sold 221,475 262 487,857 201,420 Dividends and interest 566,965 302,206 1,381,241 575,592 Foreign tax withholding reclaims 2,879 - - 2,107 Other assets 2,748 1,609 7,914 3,128 ------------- ------------- --------------- ------------- TOTAL ASSETS 521,097,705 292,438,753 1,599,808,718 625,652,672 ------------- ------------- --------------- ------------- LIABILITIES Payables: Investments purchased 433,283 2,102,283 2,663,460 2,011,036 Fund shares redeemed - 873,090 1,443,699 219,259 Dividend and interest withholding tax 1,493 2,014 21,879 - Due to adviser - - 906 - Other payables and accrued expenses 55,962 40,050 142,794 66,314 Collateral for securities lending 20,069,219 14,673,806 100,351,928 66,142,244 ------------- ------------- --------------- ------------- TOTAL LIABILITIES 20,559,957 17,691,243 104,624,666 68,438,853 ------------- ------------- --------------- ------------- NET ASSETS $ 500,537,748 $ 274,747,510 $ 1,495,184,052 $ 557,213,819 ============= ============= =============== ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) $ 1,282,179 $ 2,066,036 $ 1,620,528 $ 1,829,752 Accumulated undistributed net realized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts (236,823,520) (238,995,497) (216,240,990) (89,980,315) Unrealized appreciation (depreciation) on: Investments 63,880,673 25,225,050 157,258,676 94,364,940 Foreign currency and forward foreign currency contracts 1,338 - - - Capital shares at par value of $.01 526,577 180,773 966,207 434,278 Additional paid-in capital 671,670,501 486,271,148 1,551,579,631 550,565,164 ------------- ------------- --------------- ------------- NET ASSETS $ 500,537,748 $ 274,747,510 $ 1,495,184,052 $ 557,213,819 ============= ============= =============== ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 456,415,396 $ 264,633,384 $ 1,437,273,047 $ 530,384,833 ============= ============= =============== ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 414,672,233 $ 255,587,248 $ 1,290,525,036 $ 413,803,389 ============= ============= =============== ============= Shares Outstanding 43,597,240 16,812,231 83,357,813 32,216,546 ------------- ------------- --------------- ------------- Net asset value, offering and redemption price per share $ 9.51 $ 15.20 $ 15.48 $ 12.84 ============= ============= =============== ============= SERIES II SHARES: Net Assets at value $ 85,865,515 $ 19,159,889 $ 204,652,804 $ 143,409,231 ============= ============= =============== ============= Shares Outstanding 9,060,416 1,265,030 13,262,527 11,211,122 ------------- ------------- --------------- ------------- Net asset value, offering and redemption price per share $ 9.48 $ 15.15 $ 15.43 $ 12.79 ============= ============= =============== ============= SERIES III SHARES+: Net Assets at value - $ 373 $ 6,212 $ 1,199 ============= ============= =============== ============= Shares Outstanding - 25 401 94 ------------- ------------- --------------- ------------- Net asset value, offering and redemption price per share - $ 15.20 $ 15.48 $ 12.84 ============= ============= =============== =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 8 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
STRATEGIC LARGE CAP REAL ESTATE VALUE VALUE UTILITIES SECURITIES TRUST TRUST TRUST TRUST ------------- ----------- ------------ ------------- ASSETS Investments in securities, at value $ 143,064,589 $13,695,361 $ 54,345,536 $ 591,151,161 Securities on loan, at value (Note 2) 3,805,919 3,054,638 1,062,673 8,997,570 Repurchase agreements, at value - 1,134,000 - 19,630,000 ------------- ----------- ------------ ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 146,870,508 17,883,999 55,408,209 619,778,731 Cash 219 20,980 282 401,460 Foreign currency - - 2,667 - Receivables: Forward foreign currency contracts (Note 8) - - 263 - Investments sold - 228,024 883,679 3,519,095 Fund shares sold 63,794 558,450 120,374 1,086,008 Dividends and interest 277,821 7,629 165,983 2,553,425 Foreign tax withholding reclaims 82 - 589 - Other assets 395 35 233 2,650 ------------- ----------- ------------ ------------- TOTAL ASSETS 147,212,819 18,699,117 56,582,279 627,341,369 ------------- ----------- ------------ ------------- LIABILITIES Payables: Forward foreign currency contracts (Note 8) - - 2,093 - Investments purchased 131,042 1,364,546 523,810 1,799,084 Fund shares redeemed 41,104 - - - Dividend and interest withholding tax - 73 5,697 - Due to adviser - - 965 604 Other payables and accrued expenses 22,958 20,433 26,496 60,456 Collateral for securities lending 3,948,925 3,133,921 1,089,830 9,194,175 ------------- ----------- ------------ ------------- TOTAL LIABILITIES 4,144,029 4,518,973 1,648,891 11,054,319 ------------- ----------- ------------ ------------- NET ASSETS $ 143,068,790 $14,180,144 $ 54,933,388 $ 616,287,050 ============= =========== ============ ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) $ 583,696 - $ 611,834 $ 17,512,180 Accumulated undistributed net realized gain (loss) on investments, foreign currency and forward foreign currency contracts (7,312,560) $ 190,999 (4,361,819) (2,684,989) Unrealized appreciation (depreciation) on: Investments 17,384,758 1,293,298 6,237,787 127,234,662 Foreign currency and forward foreign currency contracts - - 1,147 - Capital shares at par value of $.01 142,795 9,062 58,348 295,784 Additional paid-in capital 132,270,101 12,686,785 52,386,091 473,929,413 ------------- ----------- ------------ ------------- NET ASSETS $ 143,068,790 $14,180,144 $ 54,933,388 $ 616,287,050 ============= =========== ============ ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 129,485,750 $16,590,701 $ 49,170,422 $ 492,544,069 ------------- ----------- ------------ ------------- Investments in foreign currency, at identified cost - - $ 2,644 - ============= =========== ============ ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 95,601,934 $ 6,202,905 $ 34,439,679 $ 447,860,241 ============= =========== ============ ============= Shares Outstanding 9,532,660 396,089 3,652,797 21,477,714 ------------- ----------- ------------ ------------- Net asset value, offering and redemption price per share $ 10.03 $ 15.66 $ 9.43 $ 20.85 ============= =========== ============ ============= SERIES II SHARES: Net Assets at value $ 47,465,692 $ 7,977,239 $ 20,493,598 $ 168,405,313 ============= =========== ============ ============= Shares Outstanding 4,746,685 510,093 2,181,993 8,099,642 ------------- ----------- ------------ ------------- Net asset value, offering and redemption price per share $ 10.00 $ 15.64 $ 9.39 $ 20.79 ============= =========== ============ ============= SERIES III SHARES+: Net Assets at value $ 1,164 - $ 111 $ 21,496 ============= =========== ============ ============= Shares Outstanding 116 - 12 1,031 ------------- ----------- ------------ ------------- Net asset value, offering and redemption price per share $ 10.03 - $ 9.43 $ 20.85 ============= =========== ============ =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 9 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
SMALL CAP SMALL COMPANY SPECIAL MID CAP OPPORTUNITIES VALUE VALUE VALUE TRUST TRUST TRUST TRUST ------------- ------------ ----------- ------------- ASSETS Investments in securities, at value $67,191,571 $534,976,696 $15,336,743 $ 435,843,655 Securities on loan, at value (Note 2) 9,312,855 52,456,890 4,137,021 35,467,894 Repurchase agreements, at value 1,873,000 1,179,000 2,519,000 21,721,000 ----------- ------------ ----------- ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 78,377,426 588,612,586 21,992,764 493,032,549 Cash 915 647,874 942 759 Foreign currency 967 - - - Receivables: Investments sold - 1,130,199 15,739 1,481,085 Fund shares sold 807,573 1,691,319 189,509 606,833 Dividends and interest 141,768 464,621 10,290 453,278 Other assets 249 2,497 66 2,350 ----------- ------------ ----------- ------------- TOTAL ASSETS 79,328,898 592,549,096 22,209,310 495,576,854 ----------- ------------ ----------- ------------- LIABILITIES Payables: Investments purchased 826,375 4,871,792 298,505 4,553,651 Dividend and interest withholding tax 438 - - - Due to adviser - - 964 946 Other payables and accrued expenses 17,320 55,400 15,799 49,128 Collateral for securities lending 9,545,847 53,925,328 4,248,886 36,322,557 ----------- ------------ ----------- ------------- TOTAL LIABILITIES 10,389,980 58,852,520 4,564,154 40,926,282 ----------- ------------ ----------- ------------- NET ASSETS $68,938,918 $533,696,576 $17,645,156 $ 454,650,572 =========== ============ =========== ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) $ 83,536 $ 894,470 - $ 2,523,735 Accumulated undistributed net realized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts 1,322,778 5,511,788 $ 389,665 (7,218,492) Unrealized appreciation (depreciation) on: Investments 13,523,952 90,451,979 2,430,967 69,661,893 Foreign currency and forward foreign currency contracts 18 - - - Capital shares at par value of $.01 39,409 311,633 11,158 310,531 Additional paid-in capital 53,969,225 436,526,706 14,813,366 389,372,905 ----------- ------------ ----------- ------------- NET ASSETS $68,938,918 $533,696,576 $17,645,156 $ 454,650,572 =========== ============ =========== ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $64,853,474 $498,160,607 $19,561,797 $ 423,370,656 ----------- ------------ ----------- ------------- Investments in foreign currency, at identified cost $ 958 - - - =========== ============ =========== ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $35,586,864 $385,926,058 $10,896,372 $ 283,431,790 =========== ============ =========== ============= Shares Outstanding 2,033,086 22,519,631 688,664 19,342,583 ----------- ------------ ----------- ------------- Net asset value, offering and redemption price per share $ 17.50 $ 17.14 $ 15.82 $ 14.65 =========== ============ =========== ============= SERIES II SHARES: Net Assets at value $33,351,534 $147,770,054 $ 6,748,538 $ 171,216,432 =========== ============ =========== ============= Shares Outstanding 1,907,764 8,643,611 427,087 11,710,362 ----------- ------------ ----------- ------------- Net asset value, offering and redemption price per share $ 17.48 $ 17.10 $ 15.80 $ 14.62 =========== ============ =========== ============= SERIES III SHARES+: Net Assets at value $ 520 $ 464 $ 246 $ 2,350 =========== ============ =========== ============= Shares Outstanding 30 27 16 160 ----------- ------------ ----------- ------------- Net asset value, offering and redemption price per share $ 17.50 $ 17.14 $ 15.82 $ 14.65 =========== ============ =========== =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 10 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
ALL CAP EQUITY FUNDAMENTAL VALUE VALUE INDEX VALUE TRUST TRUST TRUST TRUST ------------- ------------- ------------ ------------- ASSETS Investments in securities, at value $ 300,438,155 $ 277,221,401 $ 78,424,930 $ 557,686,445 Securities on loan, at value (Note 2) - 13,551,652 517,537 15,288,431 Repurchase agreements, at value - 12,314,000 2,982,000 - ------------- ------------- ------------ ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 300,438,155 303,087,053 81,924,467 572,974,876 Cash 1,547 436 654 572 Foreign currency - - - 24,878 Receivables: Investments sold - 898,763 - - Fund shares sold 102,817 240,321 53,315 734,551 Variation margin for open futures contracts - - 7,975 - Dividends and interest 530,076 278,500 109,033 950,781 Other assets 1,537 584 465 2,527 ------------- ------------- ------------ ------------- TOTAL ASSETS 301,074,132 304,505,657 82,095,909 574,688,185 ------------- ------------- ------------ ------------- LIABILITIES Payables: Investments purchased - 5,413,697 - 504,193 Dividend and interest withholding tax - - - 18,853 Due to adviser - 912 - 848 Other payables and accrued expenses 38,048 29,710 26,712 56,308 Collateral for securities lending - 13,885,067 533,071 15,667,588 ------------- ------------- ------------ ------------- TOTAL LIABILITIES 38,048 19,329,386 559,783 16,247,790 ------------- ------------- ------------ ------------- NET ASSETS $ 301,036,084 $ 285,176,271 $ 81,536,126 $ 558,440,395 ============= ============= ============ ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) $ 1,751,830 $ 910,435 $ 1,026,275 $ 3,092,009 Accumulated undistributed net realized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts (47,569,263) (3,355,592) (5,205,605) (6,765,496) Unrealized appreciation (depreciation) on: Investments 51,819,478 43,471,378 (7,829,543) 88,629,035 Futures contracts - - 64,812 - Foreign currency and forward foreign currency contracts - - - 221 Capital shares at par value of $.01 176,231 226,937 59,943 439,769 Additional paid-in capital 294,857,808 243,923,113 93,420,244 473,044,857 ------------- ------------- ------------ ------------- NET ASSETS $ 301,036,084 $ 285,176,271 $ 81,536,126 $ 558,440,395 ============= ============= ============ ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 248,618,677 $ 259,615,675 $ 89,754,010 $ 484,345,841 ------------- ------------- ------------ ------------- Investments in foreign currency, at identified cost - - - $ 24,728 ============= ============= ============ ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 272,292,477 $ 183,743,205 $ 81,536,126 $ 355,263,251 ============= ============= ============ ============= Shares Outstanding 15,936,533 14,605,815 5,994,304 27,947,391 ------------- ------------- ------------ ------------- Net asset value, offering and redemption price per share $ 17.09 $ 12.58 $ 13.60 $ 12.71 ============= ============= ============ ============= SERIES II SHARES: Net Assets at value $ 28,743,607 $ 101,428,623 - $ 203,168,369 ============= ============= ============ ============= Shares Outstanding 1,686,522 8,087,549 - 16,028,770 ------------- ------------- ------------ ------------- Net asset value, offering and redemption price per share $ 17.04 $ 12.54 - $ 12.68 ============= ============= ============ ============= SERIES III SHARES+: Net Assets at value - $ 4,443 - $ 8,775 ============= ============= ============ ============= Shares Outstanding - 353 - 690 ------------- ------------- ------------ ------------- Net asset value, offering and redemption price per share - $ 12.58 - $ 12.71 ============= ============= ============ =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 11 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
GROWTH & GREAT COMPANIES- EQUITY- INCOME & INCOME AMERICA INCOME VALUE TRUST TRUST TRUST TRUST --------------- ---------------- -------------- ------------- ASSETS Investments in securities, at value $ 1,664,775,848 $2,679,960 $1,585,586,759 $ 594,689,414 Securities on loan, at value (Note 2) 31,921,690 290,731 49,650,250 97,989,138 Repurchase agreements, at value 3,210,000 131,000 3,675,000 35,318,000 --------------- ---------- -------------- ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 1,699,907,538 3,101,691 1,638,912,009 727,996,552 Cash 970 272 3,901 741 Receivables: Investments sold - - 1,082,896 210,285 Fund shares sold 314,642 - 385,683 99,031 Dividends and interest 1,380,607 2,701 4,025,509 2,452,558 Other assets 9,472 19 7,640 3,282 --------------- ---------- -------------- ------------- TOTAL ASSETS 1,701,613,229 3,104,683 1,644,417,638 730,762,449 --------------- ---------- -------------- ------------- LIABILITIES Payables: Investments purchased - - 49,400 27,378,258 Fund shares redeemed 890,713 258 1,898,293 483,679 Dividend and interest withholding tax - - - 107 Due to adviser 955 - 833 - Other payables and accrued expenses 165,201 11,572 141,037 70,079 Collateral for securities lending 32,650,450 297,150 50,949,353 100,105,153 --------------- ---------- -------------- ------------- TOTAL LIABILITIES 33,707,319 308,980 53,038,916 128,037,276 --------------- ---------- -------------- ------------- NET ASSETS $ 1,667,905,910 $2,795,703 $1,591,378,722 $ 602,725,173 =============== ========== ============== ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) $ 13,682,519 - $ 21,683,658 $ 8,212,711 Accumulated undistributed net realized gain (loss) on investments, foreign currency and forward foreign currency contracts (124,902,425) $ 555 18,223,512 (62,878,034) Unrealized appreciation (depreciation) on: Investments 208,956,447 268,774 112,825,174 82,556,413 Capital shares at par value of $.01 765,626 1,996 1,046,450 582,566 Additional paid-in capital 1,569,403,743 2,524,378 1,437,599,928 574,251,517 --------------- ---------- -------------- ------------- NET ASSETS $ 1,667,905,910 $2,795,703 $1,591,378,722 $ 602,725,173 =============== ========== ============== ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 1,490,951,091 $2,832,917 $1,526,086,835 $ 645,440,139 =============== ========== ============== ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 1,553,119,457 - $1,277,187,089 $ 521,948,858 =============== ========== ============== ============= Shares Outstanding 71,277,951 - 83,928,129 50,422,025 --------------- ---------- -------------- ------------- Net asset value, offering and redemption price per share $ 21.79 - $ 15.22 $ 10.35 =============== ========== ============== ============= SERIES II SHARES: Net Assets at value $ 114,785,064 $2,795,703 $ 314,183,582 $ 80,776,315 =============== ========== ============== ============= Shares Outstanding 5,284,626 199,643 20,716,370 7,834,569 --------------- ---------- -------------- ------------- Net asset value, offering and redemption price per share $ 21.72 $ 14.00 $ 15.17 $ 10.31 =============== ========== ============== ============= SERIES III SHARES+: Net Assets at value $ 1,389 - $ 8,051 - =============== ========== ============== ============= Shares Outstanding 64 - 529 - --------------- ---------- -------------- ------------- Net asset value, offering and redemption price per share $ 21.79 - $ 15.22 - =============== ========== ============== =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 12 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
GLOBAL HIGH STRATEGIC BALANCED ALLOCATION YIELD BOND TRUST TRUST TRUST TRUST ------------- ------------ --------------- ------------- ASSETS Investments in securities, at value $ 150,968,045 $ 79,886,134 $ 866,530,387 $ 734,042,561 Securities on loan, at value (Note 2) - 285,619 116,353,338 36,481,235 Repurchase agreements, at value 4,991,000 2,694,000 38,125,000 41,849,000 ------------- ------------ --------------- ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 155,959,045 82,865,753 1,021,008,725 812,372,796 Cash 209 553 - 858 Foreign currency - 444,495 - - Receivables: Forward foreign currency contracts (Note 8) - 87,374 - 1,039,011 Investments sold 797,634 258,696 364,100 - Fund shares sold 287,398 27,633 218,442 247,413 Dividends and interest 611,231 310,455 17,838,386 8,531,794 Foreign tax withholding reclaims - 5,462 - - Other assets 919 398 3,590 3,328 ------------- ------------ --------------- ------------- TOTAL ASSETS 157,656,436 84,000,819 1,039,433,243 822,195,200 ------------- ------------ --------------- ------------- LIABILITIES Payables: Forward foreign currency contracts (Note 8) - 120,980 - 2,988,021 Investments purchased 856,761 585,854 2,192,875 174,076,760 Fund shares redeemed 921,360 - 856,247 95,772 Variation margin for open futures contracts - - - 61,719 Dividend and interest withholding tax 681 3,016 - 1,461 Due to adviser - - 688 717 Due to custodian - - 364,000 - Other payables and accrued expenses 25,155 36,187 93,104 83,775 Collateral for securities lending - 292,050 118,768,354 37,464,550 ------------- ------------ --------------- ------------- TOTAL LIABILITIES 1,803,957 1,038,087 122,275,268 214,772,775 ------------- ------------ --------------- ------------- NET ASSETS $ 155,852,479 $ 82,962,732 $ 917,157,975 $ 607,422,425 ============= ============ =============== ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) $ 2,950,669 $ 965,193 $ 51,597,667 $ 27,056,882 Accumulated undistributed net realized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts (66,227,284) (27,107,771) (107,082,769) (20,842,285) Unrealized appreciation (depreciation) on: Investments 10,100,434 9,786,058 31,782,980 21,602,430 Futures contracts - - - (575,940) Foreign currency and forward foreign currency contracts - (17,366) 10,800 (1,799,008) Capital shares at par value of $.01 123,251 85,574 923,165 518,439 Additional paid-in capital 208,905,409 99,251,044 939,926,132 581,461,907 ------------- ------------ --------------- ------------- NET ASSETS $ 155,852,479 $ 82,962,732 $ 917,157,975 $ 607,422,425 ============= ============ =============== ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 145,858,611 $ 73,079,695 $ 989,225,745 $ 790,770,366 ------------- ------------ --------------- ------------- Investments in foreign currency, at identified cost - $ 436,434 - - ============= ============ =============== ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 137,713,432 $ 64,142,978 $ 621,276,872 $ 456,191,614 ============= ============ =============== ============= Shares Outstanding 10,886,439 6,612,339 62,463,752 38,903,952 ------------- ------------ --------------- ------------- Net asset value, offering and redemption price per share $ 12.65 $ 9.70 $ 9.95 $ 11.73 ============= ============ =============== ============= SERIES II SHARES: Net Assets at value $ 18,139,047 $ 18,819,754 $ 295,864,648 $ 151,218,047 ============= ============ =============== ============= Shares Outstanding 1,438,641 1,945,100 29,851,076 12,938,813 ------------- ------------ --------------- ------------- Net asset value, offering and redemption price per share $ 12.61 $ 9.68 $ 9.91 $ 11.69 ============= ============ =============== ============= SERIES III SHARES+: Net Assets at value - - $ 16,455 $ 12,764 ============= ============ =============== ============= Shares Outstanding - - 1,654 1,089 ------------- ------------ --------------- ------------- Net asset value, offering and redemption price per share - - $ 9.95 $ 11.73 ============= ============ =============== =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 13 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
GLOBAL DIVERSIFIED INVESTMENT TOTAL BOND BOND QUALITY BOND RETURN TRUST TRUST TRUST TRUST ------------- ------------- ------------- --------------- ASSETS Investments in securities, at value $ 283,783,083 $ 343,585,446 $ 470,350,733 $ 1,479,821,456 Securities on loan, at value (Note 2) 35,768,004 88,554,425 69,389,805 327,695,455 Repurchase agreements, at value 8,887,000 51,287,000 9,027,000 52,501,000 ------------- ------------- ------------- --------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 328,438,087 483,426,871 548,767,538 1,860,017,911 Cash - 35 915 39,888 Foreign currency 2,686,294 - - 3,013,511 Receivables: Forward foreign currency contracts (Note 8) 1,637,732 - - 21,675 Investments sold 7,098,233 276,493 - 21,345,864 Fund shares sold 208,904 71,068 77,325 1,091,364 Variation margin for open futures contracts 48,127 - - 581,691 Dividends and interest 3,984,019 4,049,371 6,642,724 8,035,062 Interest on swap agreement 192,364 - - 3,433 Foreign tax withholding reclaims 1,305 - 14,656 - Due from adviser - - - 3,446 Interest rate swap contracts (Note 3) - - - 71,334 Other assets 1,625 2,421 3,473 9,348 ------------- ------------- ------------- --------------- TOTAL ASSETS 344,296,690 487,826,259 555,506,631 1,894,234,527 ------------- ------------- ------------- --------------- LIABILITIES Payables: Forward foreign currency contracts (Note 8) 300,966 - - 117,776 Investments purchased 44,255,410 43,276,678 5,179 28,338,309 Fund shares redeemed 162,900 188,739 439,223 - Interest on swap agreement 610,508 - - 412 Variation margin for open futures contracts - - 44,375 - Dividend and interest withholding tax 1,863 - 422 - Due to adviser 872 - 531 - Due to custodian 4,388 - - - Other payables and accrued expenses 65,121 59,154 83,659 191,263 Collateral for securities lending 36,584,365 90,346,566 70,793,540 334,433,933 Interest rate swap contracts (Note 3) 1,648,882 - - - Written options outstanding, at value (Note 3) 1,091,176 - - 3,511,413 ------------- ------------- ------------- --------------- TOTAL LIABILITIES 84,726,451 133,871,137 71,366,929 366,593,106 ------------- ------------- ------------- --------------- NET ASSETS $ 259,570,239 $ 353,955,122 $ 484,139,702 $ 1,527,641,421 ============= ============= ============= =============== NET ASSETS CONSIST OF: Undistributed net investment income (loss) $ 21,527,925 $ 15,410,098 $ 28,366,967 $ 45,816,010 Accumulated undistributed net realized gain (loss) on investments, futures, options, swaps, foreign currency and forward foreign currency contracts (1,026,667) (1,630,253) (18,769,003) 7,242,415 Unrealized appreciation (depreciation) on: Investments 20,479,610 10,381,604 28,389,583 19,262,552 Futures contracts 852,439 - (192,504) 7,045,281 Written options contracts 90,549 - - 145,132 Interest rate swaps (1,648,882) - - 71,334 Foreign currency and forward foreign currency contracts 731,275 - - (5,954) Capital shares at par value of $.01 169,362 325,963 385,098 1,075,761 Additional paid-in capital 218,394,628 329,467,710 445,959,561 1,446,988,890 ------------- ------------- ------------- --------------- NET ASSETS $ 259,570,239 $ 353,955,122 $ 484,139,702 $ 1,527,641,421 ============= ============= ============= =============== Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 307,958,477 $ 473,045,267 $ 520,377,955 $ 1,840,755,359 ------------- ------------- ------------- --------------- Investments in foreign currency, at identified cost $ 2,656,663 - - $ 2,923,781 ============= ============= ============= =============== NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 195,165,466 $ 296,040,952 $ 399,189,214 $ 1,036,128,097 ============= ============= ============= =============== Shares Outstanding 12,724,956 27,251,577 31,739,711 72,891,661 ------------- ------------- ------------- --------------- Net asset value, offering and redemption price per share $ 15.34 $ 10.86 $ 12.58 $ 14.21 ============= ============= ============= =============== SERIES II SHARES: Net Assets at value $ 64,399,911 $ 57,909,091 $ 84,928,496 $ 491,176,281 ============= ============= ============= =============== Shares Outstanding 4,210,932 5,344,292 6,768,382 34,660,709 ------------- ------------- ------------- --------------- Net asset value, offering and redemption price per share $ 15.29 $ 10.84 $ 12.55 $ 14.17 ============= ============= ============= =============== SERIES III SHARES+: Net Assets at value $ 4,862 $ 5,079 $ 21,992 $ 337,043 ============= ============= ============= =============== Shares Outstanding 317 468 1,749 23,715 ------------- ------------- ------------- --------------- Net asset value, offering and redemption price per share $ 15.34 $ 10.86 $ 12.58 $ 14.21 ============= ============= ============= ===============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 14 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
REAL RETURN U.S GOVERNMENT MONEY SMALL CAP BOND SECURITIES MARKET INDEX TRUST TRUST TRUST TRUST ------------- --------------- -------------- ------------- ASSETS Investments in securities, at value $ 552,134,930 $ 1,164,867,465 $1,222,565,321 $ 170,435,496 Securities on loan, at value (Note 2) 18,591,282 - - 28,752,474 Repurchase agreements, at value 12,785,000 98,641,000 660,000 5,769,000 ------------- --------------- -------------- ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 583,511,212 1,263,508,465 1,223,225,321 204,956,970 Cash 791 900 281 4,997 Receivables: Investments sold 2,551,868 - - 188,190 Fund shares sold 391,115 146,145 316,347 61,305 Dividends and interest 870,062 2,540,999 13 151,433 Interest rate swap contracts (Note 3) 28,974 - - - Other assets 1,199 6,053 45,094 553 ------------- --------------- -------------- ------------- TOTAL ASSETS 587,355,221 1,266,202,562 1,223,587,056 205,363,448 ------------- --------------- -------------- ------------- LIABILITIES Payables: Forward foreign currency contracts (Note 8) 44,154 - - - Investments purchased 288,102,235 532,223,885 - 7,494 Fund shares redeemed 93,306 1,123,439 694,609 438,305 Variation margin for open futures contracts - 7,969 - 229,671 Dividend and interest withholding tax - - - 66 Due to adviser 828 - - 853 Other payables and accrued expenses 35,872 117,559 200,488 19,885 Collateral for securities lending 18,972,000 - - 29,592,018 Written options outstanding, at value (Note 3) 413,233 - - - ------------- --------------- -------------- ------------- TOTAL LIABILITIES 307,661,628 533,472,852 895,097 30,288,292 ------------- --------------- -------------- ------------- NET ASSETS $ 279,693,593 $ 732,729,710 $1,222,691,959 $ 175,075,156 ============= =============== ============== ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) $ 1,589,621 $ 13,405,020 - $ 608,272 Accumulated undistributed net realized gain (loss) on investments, futures, options, swaps, foreign currency and forward foreign currency contracts 4,621,766 8,228,637 - (4,427,556) Unrealized appreciation (depreciation) on: Investments 3,458,488 9,450,870 - 23,967,837 Futures contracts (1,100) (74,415) - 652,167 Written options contracts 112,919 - - - Interest rate swaps 28,971 - - - Foreign currency and forward foreign currency contracts (44,151) - - - Capital shares at par value of $.01 213,417 523,514 $ 1,222,692 136,896 Additional paid-in capital 269,713,662 701,196,084 1,221,469,267 154,137,540 ------------- --------------- -------------- ------------- NET ASSETS $ 279,693,593 $ 732,729,710 $1,222,691,959 $ 175,075,156 ============= =============== ============== ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 580,052,724 $ 1,254,057,595 $1,223,225,321 $ 180,989,133 ============= =============== ============== ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 137,431,712 $ 524,845,402 $1,037,111,831 $ 136,719,187 ============= =============== ============== ============= Shares Outstanding 10,479,347 37,475,192 103,711,175 10,684,236 ------------- --------------- -------------- ------------- Net asset value, offering and redemption price per share $ 13.11 $ 14.01 $ 10.00 $ 12.80 ============= =============== ============== ============= SERIES II SHARES: Net Assets at value $ 142,253,766 $ 207,778,319 $ 183,428,200 $ 38,350,023 ============= =============== ============== ============= Shares Outstanding 10,861,717 14,868,647 18,342,820 3,004,926 ------------- --------------- -------------- ------------- Net asset value, offering and redemption price per share $ 13.10 $ 13.97 $ 10.00 $ 12.76 ============= =============== ============== ============= SERIES III SHARES+: Net Assets at value $ 8,115 $ 105,989 $ 2,151,928 $ 5,946 ============= =============== ============== ============= Shares Outstanding 619 7,566 215,192 465 ------------- --------------- -------------- ------------- Net asset value, offering and redemption price per share $ 13.11 $ 14.01 $ 10.00 $ 12.80 ============= =============== ============== =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 15 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
INTERNATIONAL MID CAP TOTAL STOCK 500 INDEX INDEX MARKET INDEX INDEX TRUST TRUST TRUST TRUST --------------- --------------- --------------- --------------- ASSETS Investments in securities, at value $ 95,723,235 $ 185,641,733 $ 158,853,908 $ 1,082,487,434 Securities on loan, at value (Note 2) 9,227,722 14,747,247 5,296,027 16,325,678 Repurchase agreements, at value 3,931,000 2,696,000 5,418,000 18,032,000 --------------- --------------- --------------- --------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 108,881,957 203,084,980 169,567,935 1,116,845,112 Cash 382 - - 112 Foreign currency 17,419 - - - Receivables: Investments sold 4,193 226,570 4,376 - Fund shares sold 94,047 232,198 189,896 362,419 Variation margin for open futures contracts 5,052 - 3,293 54,063 Dividends and interest 95,898 109,965 187,740 1,451,814 Foreign tax withholding reclaims 22,204 - - - Other assets 422 736 603 5,292 --------------- --------------- --------------- --------------- TOTAL ASSETS 109,121,574 203,654,449 169,953,843 1,118,718,812 --------------- --------------- --------------- --------------- LIABILITIES Payables: Fund shares redeemed - 339,187 542,480 5,624,982 Variation margin for open futures contracts - 28,800 - - Dividend and interest withholding tax 8,368 - 49 - Due to adviser 965 965 965 824 Due to custodian - 225,867 4,147 - Other payables and accrued expenses 17,448 21,918 20,156 89,244 Collateral for securities lending 9,718,352 15,125,107 5,449,043 16,796,934 --------------- --------------- --------------- --------------- TOTAL LIABILITIES 9,745,133 15,741,844 6,016,840 22,511,984 --------------- --------------- --------------- --------------- NET ASSETS $ 99,376,441 $ 187,912,605 $ 163,937,003 $ 1,096,206,828 =============== =============== =============== =============== NET ASSETS CONSIST OF: Undistributed net investment income (loss) ($ 414,752) $ 758,800 $ 1,108,452 $ 10,528,836 Accumulated undistributed net realized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts (4,585,684) 104,513 (2,916,168) (40,022,271) Unrealized appreciation (depreciation) on: Investments (1,267,612) 20,345,675 1,467,771 (73,767,446) Futures contracts 194,640 68,192 239,462 517,075 Foreign currency and forward foreign currency contracts 5,744 - - - Capital shares at par value of $.01 109,481 129,158 164,660 1,139,086 Additional paid-in capital 105,334,624 166,506,267 163,872,826 1,197,811,548 --------------- --------------- --------------- --------------- NET ASSETS $ 99,376,441 $ 187,912,605 $ 163,937,003 $ 1,096,206,828 =============== =============== =============== =============== Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 110,149,569 $ 182,739,305 $ 168,100,164 $ 1,190,612,558 --------------- --------------- --------------- --------------- Investments in foreign currency, at identified cost $ 16,910 - - - =============== =============== =============== =============== NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 82,196,992 $ 145,255,448 $ 133,964,493 $ 980,365,544 =============== =============== =============== =============== Shares Outstanding 9,056,146 9,978,272 13,448,317 101,828,895 --------------- --------------- --------------- --------------- Net asset value, offering and redemption price per share $ 9.08 $ 14.56 $ 9.96 $ 9.63 =============== =============== =============== =============== SERIES II SHARES: Net Assets at value $ 17,176,053 $ 42,656,679 $ 29,971,825 $ 115,825,698 =============== =============== =============== =============== Shares Outstanding 1,891,609 2,937,517 3,017,634 12,078,069 --------------- --------------- --------------- --------------- Net asset value, offering and redemption price per share $ 9.08 $ 14.52 $ 9.93 $ 9.59 =============== =============== =============== =============== SERIES III SHARES+: Net Assets at value $ 3,396 $ 478 $ 685 $ 15,586 =============== =============== =============== =============== Shares Outstanding 374 33 69 1,618 --------------- --------------- --------------- --------------- Net asset value, offering and redemption price per share $ 9.07 $ 14.56 $ 9.96 $ 9.63 =============== =============== =============== ===============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 16 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE AGGRESSIVE 1000 GROWTH 820 BALANCED 640 MODERATE 460 TRUST TRUST TRUST TRUST --------------- --------------- --------------- --------------- ASSETS Investments in securities, at value $ 485,710,860 $ 1,875,727,180 $ 2,071,013,354 $ 747,429,463 ---------------- ---------------- ---------------- ---------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 485,710,860 1,875,727,180 2,071,013,354 747,429,463 Receivables: Investments sold 1,046,879 1,322,885 1,793,057 771,441 Fund shares sold 520,762 2,955,179 2,483,914 1,132,013 Due from adviser - 8,072 10,219 1,861 Other assets 1,570 2,063 2,411 949 ---------------- ---------------- ---------------- ---------------- TOTAL ASSETS 487,280,071 1,880,015,379 2,075,302,955 749,335,727 ---------------- ---------------- ---------------- ---------------- LIABILITIES Payables: Investments purchased 1,184,836 4,278,534 3,368,547 1,258,354 Fund shares redeemed 379,609 - 906,387 643,443 Due to adviser 17,651 - - - Other payables and accrued expenses - 40,591 45,895 23,624 ---------------- ---------------- ---------------- ---------------- TOTAL LIABILITIES 1,582,096 4,319,125 4,320,829 1,925,421 ---------------- ---------------- ---------------- ---------------- NET ASSETS $ 485,697,975 $ 1,875,696,254 $ 2,070,982,126 $ 747,410,306 ================ ================ ================ ================ NET ASSETS CONSIST OF: Accumulated undistributed net realized gain (loss) on investments ($ 65,893,970) ($ 202,416,229) ($ 143,938,979) ($ 23,301,711) Unrealized appreciation (depreciation) on: Investments 87,421,569 293,676,072 264,295,072 70,442,723 Capital shares at par value of $.01 444,312 1,582,182 1,666,244 584,465 Additional paid-in capital 463,726,064 1,782,854,229 1,948,959,789 699,684,829 ---------------- ---------------- ---------------- ---------------- NET ASSETS $ 485,697,975 $ 1,875,696,254 $ 2,070,982,126 $ 747,410,306 ================ ================ ================ ================ Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 398,289,291 $ 1,582,051,108 $ 1,806,718,282 $ 676,986,740 ================ ================ ================ ================ NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 327,926,648 $ 1,223,950,445 $ 1,330,925,209 $ 461,742,874 ================ ================ ================ ================ Shares Outstanding 29,998,464 103,241,279 107,081,673 36,107,556 ---------------- ---------------- ---------------- ---------------- Net asset value, offering and redemption price per share $ 10.93 $ 11.86 $ 12.43 $ 12.79 ================ ================ ================ ================ SERIES II SHARES: Net Assets at value $ 157,764,029 $ 651,730,326 $ 740,010,676 $ 285,664,594 ================ ================ ================ ================ Shares Outstanding 14,432,040 54,975,638 59,539,043 22,338,719 ---------------- ---------------- ---------------- ---------------- Net asset value, offering and redemption price per share $ 10.93 $ 11.85 $ 12.43 $ 12.79 ================ ================ ================ ================ SERIES III SHARES+: Net Assets at value $ 7,298 $ 15,483 $ 46,241 $ 2,838 ================ ================ ================ ================ Shares Outstanding 668 1,306 3,721 222 ---------------- ---------------- ---------------- ---------------- Net asset value, offering and redemption price per share $ 10.93 $ 11.86 $ 12.43 $ 12.79 ================ ================ ================ ================
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 17 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
LIFESTYLE SMALL-MID INTERNATIONAL HIGH GRADE CONSERVATIVE 280 CAP EQUITY SELECT BOND TRUST TRUST TRUST TRUST ---------------- ------------- ------------- ------------- ASSETS Investments in securities, at value $ 453,053,036 $ 154,042,124 $ 112,899,288 $ 175,812,256 Securities on loan, at value (Note 2) - 9,376,565 6,436,107 39,158,811 Repurchase agreements, at value - 5,033,000 6,449,000 34,880,000 -------------- ------------- ------------- ------------- TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 453,053,036 168,451,689 125,784,395 249,851,067 Cash - 368 780 32,518 Foreign currency - - 34 - Receivables: Forward foreign currency contracts (Note 8) - - 4,561 - Investments sold 597,380 - - 1,421,772 Fund shares sold 1,394 1,068,274 100 182,604 Dividends and interest - 143,272 128,816 1,566,431 Foreign tax withholding reclaims - - 12,963 - Due from adviser 8,304 - - - Other assets 717 599 475 738 -------------- ------------- ------------- ------------- TOTAL ASSETS 453,660,831 169,664,202 125,932,124 253,055,130 -------------- ------------- ------------- ------------- LIABILITIES Payables: Investments purchased 131,507 1,146,811 1,244,041 34,214,189 Fund shares redeemed 472,796 - 532,049 10,958 Dividend and interest withholding tax - - 12,235 - Other payables and accrued expenses 22,399 16,937 24,577 16,458 Collateral for securities lending - 9,626,360 6,760,432 39,953,319 -------------- ------------- ------------- ------------- TOTAL LIABILITIES 626,702 10,790,108 8,573,334 74,194,924 -------------- ------------- ------------- ------------- NET ASSETS $ 453,034,129 $ 158,874,094 $ 117,358,790 $ 178,860,206 ============== ============= ============= ============= NET ASSETS CONSIST OF: Undistributed net investment income (loss) - - $ 866,223 $ 4,038,766 Accumulated undistributed net realized gain (loss) on investments, foreign currency and forward foreign currency contracts ($ 41,827) $ 99,188 252,651 (677,936) Unrealized appreciation (depreciation) on: Investments 28,462,959 22,112,855 21,204,242 (558,834) Foreign currency and forward foreign currency contracts - - 2,276 - Capital shares at par value of $.01 332,166 131,056 86,442 128,522 Additional paid-in capital 424,280,831 136,530,995 94,946,956 175,929,688 -------------- ------------- ------------- ------------- NET ASSETS $ 453,034,129 $ 158,874,094 $ 117,358,790 $ 178,860,206 ============== ============= ============= ============= Investments in securities, including repurchase agreements and securities on loan, at identified cost $ 424,590,077 $ 146,338,834 $ 104,580,153 $ 250,409,901 -------------- ------------- ------------- ------------- Investments in foreign currency, at identified cost - - $ 33 - ============== ============= ============= ============= NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 299,278,381 $ 103,406,120 $ 76,707,793 $ 115,165,126 ============== ============= ============= ============= Shares Outstanding 21,943,109 8,523,317 5,646,403 8,269,334 -------------- ------------- ------------- ------------- Net asset value, offering and redemption price per share $ 13.64 $ 12.13 $ 13.59 $ 13.93 ============== ============= ============= ============= SERIES II SHARES: Net Assets at value $ 153,654,373 $ 55,465,699 $ 40,649,506 $ 63,688,328 ============== ============= ============= ============= Shares Outstanding 11,266,023 4,582,056 2,997,666 4,582,411 -------------- ------------- ------------- ------------- Net asset value, offering and redemption price per share $ 13.64 $ 12.10 $ 13.56 $ 13.90 ============== ============= ============= ============= SERIES III SHARES+: Net Assets at value $ 101,375 $ 2,275 $ 1,491 $ 6,752 ============== ============= ============= ============= Shares Outstanding 7,431 188 110 485 -------------- ------------- ------------- ------------- Net asset value, offering and redemption price per share $ 13.64 $ 12.13 $ 13.59 $ 13.93 ============== ============= ============= =============
+ Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on December 31, 2003. The accompanying notes are an integral part of the financial statements. 18 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 2003
AMERICAN AMERICAN AMERICAN AMERICAN BLUE CHIP GROWTH INTERNATIONAL GROWTH-INCOME INCOME AND GROWTH TRUST TRUST TRUST TRUST ------------ ------------- ------------- ------------------ ASSETS Investments in securities, at value $273,170,043 $180,669,413 $183,487,911 $182,083,760 ------------ ------------ ------------ ------------ TOTAL INVESTMENTS IN SECURITIES, AT VALUE (See accompanying portfolio of investments) 273,170,043 180,669,413 183,487,911 182,083,760 Receivables: Investments sold - - 23 - Fund shares sold 1,050,264 570,948 1,731,763 460,603 Other assets 337 631 171 558 ------------ ------------ ------------ ------------ TOTAL ASSETS 274,220,644 181,240,992 185,219,868 182,544,921 ------------ ------------ ------------ ------------ LIABILITIES Payables: Investments purchased 1,042,116 565,689 1,726,505 455,159 Due to custodian 721 346 312 479 Other payables and accrued expenses 14,481 15,667 11,476 15,186 ------------ ------------ ------------ ------------ TOTAL LIABILITIES 1,057,318 581,702 1,738,293 470,824 ------------ ------------ ------------ ------------ NET ASSETS $273,163,326 $180,659,290 $183,481,575 $182,074,097 ============ ============ ============ ============ NET ASSETS CONSIST OF: Undistributed net investment income (loss) - $ 1,510,366 $ 1,059,354 - Accumulated undistributed net realized gain (loss) on investments $ 135,259 4,268,613 378,046 - Unrealized appreciation (depreciation) on: Investments 23,779,663 27,474,298 15,391,112 $ 23,727,477 Capital shares at par value of $.01 177,267 108,406 118,111 117,905 Additional paid-in capital 249,071,137 147,297,607 166,534,952 158,228,715 ------------ ------------ ------------ ------------ NET ASSETS $273,163,326 $180,659,290 $183,481,575 $182,074,097 ============ ============ ============ ============ Investments in securities, including repurchase agreements and securities on loan, at identified cost $249,390,380 $153,195,115 $168,096,799 $158,356,283 ============ ============ ============ ============ NET ASSET VALUES: SERIES I SHARES: Net Assets at value $ 3,389,017 $ 2,590,436 $ 1,222,849 $ 1,281,642 ============ ============ ============ ============ Shares Outstanding 219,743 155,287 78,653 82,923 ------------ ------------ ------------ ------------ Net asset value, offering and redemption price per share $ 15.42 $ 16.68 $ 15.55 $ 15.46 ============ ============ ============ ============ SERIES II SHARES: Net Assets at value $269,774,309 $178,068,854 $182,258,726 $180,792,455 ============ ============ ============ ============ Shares Outstanding 17,506,976 10,685,305 11,732,442 11,707,553 ------------ ------------ ------------ ------------ Net asset value, offering and redemption price per share $ 15.41 $ 16.66 $ 15.53 $ 15.44 ============ ============ ============ ============
The accompanying notes are an integral part of the financial statements. 19 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
SCIENCE & PACIFIC RIM HEALTH EMERGING TECHNOLOGY EMERGING SCIENCES GROWTH TRUST MARKETS TRUST TRUST TRUST * ------------- ------------- ------------- ------------- Investment Income: Interest $ 265,934 $ 16,950 $ 45,657 $ 2,208 Dividends 1,557,493 1,342,487 382,512 13,485 Securities lending 37,614 36,943 14,959 1,252 Less: Foreign taxes withheld (44,141) (140,031) (3,732) (124) ------------- ------------- ------------- ------------- Total income 1,816,900 1,256,349 439,396 16,821 ------------- ------------- ------------- ------------- Expenses: Investment adviser fee (Note 5) 4,681,446 429,130 1,092,397 25,370 Distribution fee for Series I (Note 6) 688,402 79,023 122,225 1,996 Distribution fee for Series II (Note 6) 125,430 30,175 117,235 8,029 Distribution fee for Series III (Note 6) 11 4 51 - + Custodian fee 170,090 216,444 108,072 44,762 Fund administration fees (Note 5) 56,663 6,923 12,818 330 Printing and postage fees 80,897 4,787 8,807 317 Audit and legal fees 106,900 21,943 16,215 15,298 Registration and filing fees 6,439 854 1,880 75 Trustees fees and expenses (Note 7) 8,158 1,007 1,919 54 Transfer agent fee for Series III (Note 5) 176 58 761 110 Blue sky fees for Series III (Note 5) 125 115 172 5 Miscellaneous 13,945 11,718 3,350 90 ------------- ------------- ------------- ------------- Expenses before reductions by investment adviser 5,938,682 802,181 1,485,902 96,436 Less reductions of expenses by investment adviser (Note 5) (126,175) (173) (30,286) (42,921) ------------- ------------- ------------- ------------- Total expenses 5,812,507 802,008 1,455,616 53,515 ------------- ------------- ------------- ------------- Net investment income (loss) (3,995,607) 454,341 (1,016,220) (36,694) ------------- ------------- ------------- ------------- Realized and unrealized gain (loss) on investments, options, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions (54,186,358) (1,191,780) 1,451,554 625,248 Written options contracts - - 993,358 - Foreign currency and forward foreign currency contracts (14,580) (99,877) (10,411) - Change in unrealized appreciation (depreciation) on: Investments (net of deferred tax liability) 259,087,159 23,850,264 32,000,602 657,847 Written options contracts - - 691,808 - Translation of foreign currency and forward foreign currency contracts 290 (2,783) (19) - ------------- ------------- ------------- ------------- Net gain (loss) on investments, options, foreign currency and forward foreign currency contracts 204,886,511 22,555,824 35,126,892 1,283,095 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 200,890,904 $ 23,010,165 $ 34,110,672 $ 1,246,401 ============= ============= ============= =============
* For the period May 5, 2003 (commencement of operations) to December 31, 2003. + Rounds to less than $1. The accompanying notes are an integral part of the financial statements. 20 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
AGGRESSIVE EMERGING SMALL COMPANY DYNAMIC GROWTH SMALL COMPANY BLEND GROWTH TRUST TRUST TRUST TRUST --------------- --------------- --------------- --------------- Investment Income: Interest $ 162,315 $ 160,418 $ 49,233 $ 27,652 Dividends 465,239 1,665,208 1,592,202 507,047 Securities lending 77,183 160,196 65,786 13,995 Less: Foreign taxes withheld (1,946) (12,006) (5,883) - --------------- --------------- --------------- --------------- Total income 702,791 1,973,816 1,701,338 548,694 --------------- --------------- --------------- --------------- Expenses: Investment adviser fee (Note 5) 2,206,081 3,373,559 1,426,321 1,127,166 Distribution fee for Series I (Note 6) 347,061 496,693 186,006 160,981 Distribution fee for Series II (Note 6) 98,577 152,985 120,666 88,504 Distribution fee for Series III (Note 6) - + 6 - - Custodian fee 132,879 114,829 108,999 58,915 Fund administration fees (Note 5) 32,735 43,955 17,619 12,259 Printing and postage fees 22,164 28,806 10,606 13,361 Audit and legal fees 21,557 24,853 16,973 31,111 Registration and filing fees 3,835 5,314 1,990 1,047 Trustees fees and expenses (Note 7) 4,876 6,337 2,342 1,480 Transfer agent fee for Series III (Note 5) - 94 - - Blue sky fees for Series III (Note 5) - 118 - - Miscellaneous 7,943 10,236 4,162 3,311 --------------- --------------- --------------- --------------- Expenses before reductions by investment adviser 2,877,708 4,257,785 1,895,684 1,498,135 Less reductions of expenses by investment adviser (Note 5) - (212) - - --------------- --------------- --------------- --------------- Total expenses 2,877,708 4,257,573 1,895,684 1,498,135 --------------- --------------- --------------- --------------- Net investment income (loss) (2,174,917) (2,283,757) (194,346) (949,441) --------------- --------------- --------------- --------------- Realized and unrealized gain (loss) on investments, options, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions (3,581,642) (11,730,417) (8,444,140) 15,051,422 Written options contracts 27,218 - - - Foreign currency and forward foreign currency contracts - 527 - 23 Change in unrealized appreciation (depreciation) on: Investments 82,529,333 144,059,646 64,215,879 25,874,818 Written options contracts 11,497 - - - Translation of foreign currency and forward foreign currency contracts - 21 7 (14) --------------- --------------- --------------- --------------- Net gain (loss) on investments, options, foreign currency and forward foreign currency contracts 78,986,406 132,329,777 55,771,746 40,926,249 --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations $ 76,811,489 $ 130,046,020 $ 55,577,400 $ 39,976,808 =============== =============== =============== ===============
+ Rounds to less than $1. The accompanying notes are an integral part of the financial statements. 21 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
MID CAP NATURAL ALL CAP STRATEGIC STOCK RESOURCES GROWTH OPPORTUNITIES TRUST TRUST * TRUST TRUST ------------- ------------- ------------- ------------- Investment Income: Interest $ 227,313 $ 45,766 $ 214,645 $ 182,452 Dividends 916,665 1,295,187 3,053,531 5,122,289 Securities lending 46,494 10,968 31,587 84,273 Less: Foreign taxes withheld (13,350) (68,990) (13,320) (29,571) ------------- ------------- ------------- ------------- Total income 1,177,122 1,282,931 3,286,443 5,359,443 ------------- ------------- ------------- ------------- Expenses: Investment adviser fee (Note 5) 2,065,374 689,622 4,162,214 3,670,593 Distribution fee for Series I (Note 6) 309,384 72,573 706,034 763,520 Distribution fee for Series II (Note 6) 218,610 92,483 180,526 53,750 Distribution fee for Series III (Note 6) 2 2 2 - Custodian fee 105,229 69,376 151,917 223,177 Fund administration fees (Note 5) 31,781 7,918 66,146 68,056 Printing and postage fees 20,050 7,460 45,622 48,954 Audit and legal fees 21,481 14,992 30,435 30,811 Registration and filing fees 3,989 1,701 7,964 6,813 Trustees fees and expenses (Note 7) 4,627 1,287 9,578 10,124 Transfer agent fee for Series III (Note 5) 13 18 - - Blue sky fees for Series III (Note 5) 111 112 - - Miscellaneous 6,599 2,482 14,897 17,664 ------------- ------------- ------------- ------------- Expenses before reductions by investment adviser 2,787,250 960,026 5,375,335 4,893,462 Less reductions of expenses by investment adviser (Note 5) (124) (130) - - ------------- ------------- ------------- ------------- Total expenses 2,787,126 959,896 5,375,335 4,893,462 ------------- ------------- ------------- ------------- Net investment income (loss) (1,610,004) 323,035 (2,088,892) 465,981 ------------- ------------- ------------- ------------- Realized and unrealized gain (loss) on investments, options, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions 20,391,397 4,834,228 (33,767,028) 17,835,740 Written options contracts - - 66,113 - Foreign currency and forward foreign currency contracts (6,329) (103,715) 47,358 8,857 Change in unrealized appreciation (depreciation) on: Investments 77,436,540 39,255,276 171,359,467 102,044,091 Translation of foreign currency and forward foreign currency contracts - (10) 1,248 435 ------------- ------------- ------------- ------------- Net gain (loss) on investments, options, foreign currency and forward foreign currency contracts 97,821,608 43,985,779 137,707,158 119,889,123 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 96,211,604 $ 44,308,814 $ 135,618,266 $ 120,355,104 ============= ============= ============= =============
* For the period May 5, 2003 (commencement of operations) to December 31, 2003. The accompanying notes are an integral part of the financial statements. 22 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
FINANCIAL INTERNATIONAL INTERNATIONAL SERVICES STOCK OVERSEAS SMALL CAP TRUST TRUST TRUST TRUST ------------ ------------- ------------- ------------- Investment Income: Interest $ 52,953 $ 18,825 $ 210,714 $ 90,691 Dividends 1,024,850 7,321,183 6,385,640 4,515,950 Securities lending 11,610 202,615 148,068 53,815 Less: Foreign taxes withheld (25,701) (784,381) (787,865) (726,505) ------------ ------------ ------------- ------------ Total income 1,063,712 6,758,242 5,956,557 3,933,951 ------------ ------------ ------------- ------------ Expenses: Investment adviser fee (Note 5) 515,197 2,614,274 2,941,631 1,862,419 Distribution fee for Series I (Note 6) 63,339 371,979 466,309 252,280 Distribution fee for Series II (Note 6) 81,052 208,513 198,904 109,867 Distribution fee for Series III (Note 6) - + 2 6 9 Custodian fee 42,329 403,438 535,253 401,138 Fund administration fees (Note 5) 7,572 38,102 44,329 18,562 Printing and postage fees 5,095 22,351 22,679 13,894 Audit and legal fees 14,769 25,560 27,133 20,441 Registration and filing fees 1,071 4,223 4,702 2,732 Trustees fees and expenses (Note 7) 1,116 5,170 5,612 2,772 Transfer agent fee for Series III (Note 5) 5 - - 126 Blue sky fees for Series III (Note 5) 110 - - 120 Miscellaneous 1,548 15,384 11,819 4,713 ------------ ------------ ------------- ------------ Expenses before reductions by investment adviser 733,203 3,708,996 4,258,377 2,689,073 Less reductions of expenses by investment adviser (Note 5) (115) - - (246) ------------ ------------ ------------- ------------ Total expenses 733,088 3,708,996 4,258,377 2,688,827 ------------ ------------ ------------- ------------ Net investment income (loss) 330,624 3,049,246 1,698,180 1,245,124 ------------ ------------ ------------- ------------ Realized and unrealized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions (1,645,293) 1,862,497 (7,817,201) 9,754,341 Futures contracts - - (81) - Foreign currency and forward foreign currency contracts (3,574) 434,591 211,354 (840,137) Change in unrealized appreciation (depreciation) on: Investments 21,509,955 83,476,094 150,019,040 88,922,359 Translation of foreign currency and forward foreign currency contracts 1,119 221,167 (2,665) 36,379 ------------ ------------ ------------- ------------ Net gain (loss) on investments, futures, foreign currency and forward foreign currency contracts 19,862,207 85,994,349 142,410,447 97,872,942 ------------ ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations $ 20,192,831 $ 89,043,595 $ 144,108,627 $ 99,118,066 ============ ============ ============= ============
+ Rounds to less than $1. The accompanying notes are an integral part of the financial statements. 23 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
INTERNATIONAL QUANTITATIVE MID CAP GLOBAL VALUE MID CAP CORE EQUITY TRUST TRUST TRUST * TRUST ------------- ------------ ----------- ------------ Investment Income: Interest $ 84,232 $ 40,539 $ 46,497 $ 19,859 Dividends 10,848,298 702,920 203,861 7,528,784 Securities lending 322,361 12,946 3,262 88,944 Less: Foreign taxes withheld (1,190,499) (1,189) (223) (494,656) ------------- ------------ ----------- ------------ Total income 10,064,392 755,216 253,397 7,142,931 ------------- ------------ ----------- ------------ Expenses: Investment adviser fee (Note 5) 2,527,140 614,214 180,602 2,708,494 Distribution fee for Series I (Note 6) 335,597 134,712 16,734 519,216 Distribution fee for Series II (Note 6) 302,938 16,403 38,535 52,459 Distribution fee for Series III (Note 6) 1 - - + - + Custodian fee 404,002 53,907 37,724 411,123 Fund administration fees (Note 5) 38,379 11,451 2,206 47,288 Printing and postage fees 18,972 7,915 2,082 32,539 Audit and legal fees 25,195 15,361 12,829 25,322 Registration and filing fees 4,153 1,425 490 5,549 Trustees fees and expenses (Note 7) 5,005 1,736 360 6,867 Transfer agent fee for Series III (Note 5) - - - 5 Blue sky fees for Series III (Note 5) - - - 110 Miscellaneous 8,600 2,569 546 21,191 ------------- ------------ ----------- ------------ Expenses before reductions by investment adviser 3,669,982 859,693 292,108 3,830,163 Less reductions of expenses by investment adviser (Note 5) (24,948) - - (11,998) ------------- ------------ ----------- ------------ Total expenses 3,645,034 859,693 292,108 3,818,165 ------------- ------------ ----------- ------------ Net investment income (loss) 6,419,358 (104,477) (38,711) 3,324,766 ------------- ------------ ----------- ------------ Realized and unrealized gain (loss) on investments, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions (2,365,483) 6,379,227 580,482 23,780,580 Foreign currency and forward foreign currency contracts (577,316) - - 3,070,804 Change in unrealized appreciation (depreciation) on: Investments 116,610,107 25,313,489 5,971,693 58,070,915 Translation of foreign currency and forward foreign currency contracts 17,775 - - 51,590 ------------- ------------ ----------- ------------ Net gain (loss) on investments, foreign currency and forward foreign currency contracts 113,685,083 31,692,716 6,552,175 84,973,889 ------------- ------------ ----------- ------------ Net increase (decrease) in net assets resulting from operations $ 120,104,441 $ 31,588,239 $ 6,513,464 $ 88,298,655 ============= ============ =========== ============
* For the period May 5, 2003 (commencement of operations) to December 31, 2003. + Rounds to less than $1. The accompanying notes are an integral part of the financial statements. 24 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
STRATEGIC CAPITAL QUANTITATIVE ALL CAP GROWTH APPRECIATION ALL CAP CORE TRUST TRUST TRUST * TRUST ------------ ------------ ------------ ------------ Investment Income: Interest $ 102,359 $ 66,718 $ 1,332 $ 96,025 Dividends 1,683,344 1,218,544 34,015 3,431,788 Securities lending 4,930 9,045 429 14,920 Less: Foreign taxes withheld (3,543) (21,579) (191) (165) ------------ ------------ ------------ ------------ Total income 1,787,090 1,272,728 35,585 3,542,568 ------------ ------------ ------------ ------------ Expenses: Investment adviser fee (Note 5) 1,488,580 1,114,821 15,620 1,746,290 Distribution fee for Series I (Note 6) 220,240 156,574 1,690 364,181 Distribution fee for Series II (Note 6) 180,777 154,911 4,467 23,388 Distribution fee for Series III (Note 6) 1 1 - + - Custodian fee 113,632 79,921 29,642 108,689 Fund administration fees (Note 5) 23,400 18,176 276 31,800 Printing and postage fees 13,623 11,391 259 21,972 Audit and legal fees 19,604 17,964 12,759 20,541 Registration and filing fees 2,965 2,433 57 3,339 Trustees fees and expenses (Note 7) 3,030 2,501 44 3,871 Transfer agent fee for Series III (Note 5) 13 - 5 - Blue sky fees for Series III (Note 5) 111 - 110 - Miscellaneous 5,170 3,531 71 8,119 ------------ ------------ ------------ ------------ Expenses before reductions by investment adviser 2,071,146 1,562,224 65,000 2,332,190 Less reductions of expenses by investment adviser (Note 5) (124) - (31,211) - ------------ ------------ ------------ ------------ Total expenses 2,071,022 1,562,224 33,789 2,332,190 ------------ ------------ ------------ ------------ Net investment income (loss) (283,932) (289,496) 1,796 1,210,378 ------------ ------------ ------------ ------------ Realized and unrealized gain (loss) on investments, futures, options, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions 2,419,447 (2,362,073) 315,737 16,097,202 Futures contracts - - - 5,938,356 Written options contracts - 2,452 - - Foreign currency and forward foreign currency contracts 164 - - - Change in unrealized appreciation (depreciation) on: Investments 46,489,374 42,108,116 494,380 45,332,054 Futures contracts - - - 404,634 Translation of foreign currency and forward foreign currency contracts (202) - - - ------------ ------------ ------------ ------------ Net gain (loss) on investments, futures, options, foreign currency and forward foreign currency contracts 48,908,783 39,748,495 810,117 67,772,246 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $ 48,624,851 $ 39,458,999 $ 811,913 $ 68,982,624 ============ ============ ============ ============
* For the period May 5, 2003 (commencement of operations) to December 31, 2003. + Rounds to less than $1. The accompanying notes are an integral part of the financial statements. 25 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
U.S. LARGE LARGE CAP QUANTITATIVE BLUE CHIP CAP TRUST GROWTH EQUITY GROWTH (FORMERLY, U.S. LARGE TRUST TRUST TRUST CAP VALUE TRUST) ------------- ------------- ------------- --------------------- Investment Income: Interest $ 65,618 $ 84,425 $ 94,245 $ 429,919 Dividends 5,602,879 4,067,440 13,231,162 6,097,992 Securities lending 34,331 8,092 66,824 45,078 Less: Foreign taxes withheld (14,150) (11,196) (62,007) (81,142) ------------- ------------- ------------- ------------- Total income 5,688,678 4,148,761 13,330,224 6,491,847 ------------- ------------- ------------- ------------- Expenses: Investment adviser fee (Note 5) 3,321,396 1,507,407 9,155,555 3,463,143 Distribution fee for Series I (Note 6) 574,908 359,251 1,722,924 568,153 Distribution fee for Series II (Note 6) 208,532 41,067 432,619 346,172 Distribution fee for Series III (Note 6) - - + 5 1 Custodian fee 161,147 83,954 256,521 129,619 Fund administration fees (Note 5) 56,445 32,861 159,487 60,601 Printing and postage fees 38,277 20,494 103,029 31,892 Audit and legal fees 27,483 21,397 55,598 29,303 Registration and filing fees 7,025 3,281 18,538 6,479 Trustees fees and expenses (Note 7) 8,201 4,812 23,068 8,459 Transfer agent fee for Series III (Note 5) - - 59 - Blue sky fees for Series III (Note 5) - - 115 - Miscellaneous 12,741 8,201 37,732 18,273 ------------- ------------- ------------- ------------- Expenses before reductions by investment adviser 4,416,155 2,082,725 11,965,250 4,662,095 Less reductions of expenses by investment adviser (Note 5) - - (320,829) - ------------- ------------- ------------- ------------- Total expenses 4,416,155 2,082,725 11,644,421 4,662,095 ------------- ------------- ------------- ------------- Net investment income (loss) 1,272,523 2,066,036 1,685,803 1,829,752 ------------- ------------- ------------- ------------- Realized and unrealized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions (15,721,398) (26,617,264) (44,128,547) (33,864,011) Futures contracts - 121,935 - - Foreign currency and forward foreign currency contracts 9,656 - (65,275) - Change in unrealized appreciation (depreciation) on: Investments 116,432,026 77,836,476 373,187,550 185,849,158 Translation of foreign currency and forward foreign currency contracts 490 - - - ------------- ------------- ------------- ------------- Net gain (loss) on investments, futures, foreign currency and forward foreign currency contracts 100,720,774 51,341,147 328,993,728 151,985,147 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 101,993,297 $ 53,407,183 $ 330,679,531 $ 153,814,899 ============= ============= ============= =============
+ Rounds to less than $1. The accompanying notes are an integral part of the financial statements. 26 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
STRATEGIC VALUE TRUST LARGE CAP REAL ESTATE (FORMERLY, CAPITAL VALUE UTILITIES SECURITIES OPPORTUNITIES TRUST) TRUST * TRUST TRUST -------------------- ------------- ------------- ------------- Investment Income: Interest $ 38,228 $ 614 $ 243,090 $ 73,102 Dividends 1,512,744 62,931 950,608 21,358,006 Securities lending 6,930 891 3,023 35,825 Less: Foreign taxes withheld (2,389) (152) (29,668) (46,789) ------------- ------------- ------------- ------------- Total income 1,555,513 64,284 1,167,053 21,420,144 ------------- ------------- ------------- ------------- Expenses: Investment adviser fee (Note 5) 666,775 35,746 298,813 2,765,858 Distribution fee for Series I (Note 6) 98,157 2,792 40,492 541,247 Distribution fee for Series II (Note 6) 82,129 10,166 44,965 350,490 Distribution fee for Series III (Note 6) - + - - + 24 Custodian fee 91,043 80,545 139,591 110,690 Fund administration fees (Note 5) 8,016 408 4,539 52,883 Printing and postage fees 5,984 389 3,094 34,201 Audit and legal fees 15,301 12,302 14,898 27,222 Registration and filing fees 1,311 95 639 7,147 Trustees fees and expenses (Note 7) 1,236 67 673 7,355 Transfer agent fee for Series III (Note 5) - - 5 337 Blue sky fees for Series III (Note 5) - - 110 138 Miscellaneous 1,838 173 1,321 10,972 ------------- ------------- ------------- ------------- Expenses before reductions by investment adviser 971,790 142,683 549,140 3,908,564 Less reductions of expenses by investment adviser (Note 5) - (70,148) (115) (475) ------------- ------------- ------------- ------------- Total expenses 971,790 72,535 549,025 3,908,089 ------------- ------------- ------------- ------------- Net investment income (loss) 583,723 (8,251) 618,028 17,512,055 ------------- ------------- ------------- ------------- Realized and unrealized gain (loss) on investments, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions 4,372,341 432,453 4,288,999 15,030,159 Foreign currency and forward foreign currency contracts (27) - (5,696) 125 Change in unrealized appreciation (depreciation) on: Investments 19,745,838 1,293,298 6,991,872 124,300,806 Translation of foreign currency and forward foreign currency contracts - - 1,101 - Net gain (loss) on investments, futures, options, ------------- ------------- ------------- ------------- foreign currency and forward foreign currency contracts 24,118,152 1,725,751 11,276,276 139,331,090 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 24,701,875 $ 1,717,500 $ 11,894,304 $ 156,843,145 ============= ============= ============= =============
* For the period May 5, 2003 (commencement of operations) to December 31, 2003. + Rounds to less than $1. The accompanying notes are an integral part of the financial statements. 27 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
SMALL CAP SMALL COMPANY SPECIAL MID CAP OPPORTUNITIES VALUE VALUE VALUE TRUST * TRUST TRUST * TRUST ------------- ------------- ------------ ------------ Investment Income: Interest $ 14,545 $ 132,362 $ 6,114 $ 96,980 Dividends 435,955 5,470,688 79,373 6,260,648 Securities lending 8,166 83,504 1,578 27,950 Less: Foreign taxes withheld (1,470) - - (23,135) ------------ ------------ ------------ ------------ Total income 457,196 5,686,554 87,065 6,362,443 ------------ ------------ ------------ ------------ Expenses: Investment adviser fee (Note 5) 258,418 3,737,802 71,496 2,831,730 Distribution fee for Series I (Note 6) 28,076 486,336 8,349 378,002 Distribution fee for Series II (Note 6) 34,985 318,807 8,322 392,802 Distribution fee for Series III (Note 6) - + - + - + 2 Custodian fee 31,077 117,121 31,685 110,103 Fund administration fees (Note 5) 2,930 50,252 825 47,580 Printing and postage fees 2,763 31,209 774 30,327 Audit and legal fees 13,037 26,297 12,921 25,617 Registration and filing fees 634 6,419 180 6,457 Trustees fees and expenses (Note 7) 476 7,240 134 6,779 Transfer agent fee for Series III (Note 5) - - 5 22 Blue sky fees for Series III (Note 5) - - 110 112 Miscellaneous 734 10,601 219 9,309 ------------ ------------ ------------ ------------ Expenses before reductions by investment adviser 373,130 4,792,084 135,020 3,838,842 Less reductions of expenses by investment adviser (Note 5) - - (7,139) (134) ------------ ------------ ------------ ------------ Total expenses 373,130 4,792,084 127,881 3,838,708 ------------ ------------ ------------ ------------ Net investment income (loss) 84,066 894,470 (40,816) 2,523,735 ------------ ------------ ------------ ------------ Realized and unrealized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions 388,900 6,095,623 430,481 (3,014,911) Futures contracts 933,878 - - - Foreign currency and forward foreign currency contracts (530) - - - Change in unrealized appreciation (depreciation) on: Investments 13,523,952 115,324,823 2,430,967 87,842,564 Translation of foreign currency and forward foreign currency contracts 18 - - - ------------ ------------ ------------ ------------ Net gain (loss) on investments, futures, foreign currency and forward foreign currency contracts 14,846,218 121,420,446 2,861,448 84,827,653 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $ 14,930,284 $122,314,916 $ 2,820,632 $ 87,351,388 ============ ============ ============ ============
* For the period May 5, 2003 (commencement of operations) to December 31, 2003. + Rounds to less than $1. The accompanying notes are an integral part of the financial statements. 28 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
ALL CAP EQUITY FUNDAMENTAL VALUE VALUE INDEX VALUE TRUST TRUST TRUST TRUST ------------- ------------- ------------- ------------- Investment Income: Interest $ 34,769 $ 49,223 $ 12,550 $ 319,461 Dividends 3,952,465 2,484,436 1,310,288 7,126,472 Securities lending 11,519 14,302 884 27,880 Less: Foreign taxes withheld (24,344) (13,383) - (121,952) ------------- ------------- ------------- ------------- Total income 3,974,409 2,534,578 1,323,722 7,351,861 ------------- ------------- ------------- ------------- Expenses: Investment adviser fee (Note 5) 1,628,789 1,175,734 185,625 3,165,632 Distribution fee for Series I (Note 6) 351,726 164,852 - 443,198 Distribution fee for Series II (Note 6) 63,429 161,274 - 432,379 Distribution fee for Series III (Note 6) - 4 - 8 Custodian fee 87,506 78,742 116,271 130,663 Fund administration fees (Note 5) 32,032 11,486 9,737 50,301 Printing and postage fees 20,592 9,183 6,669 32,729 Audit and legal fees 20,685 15,971 13,721 26,455 Registration and filing fees 3,443 2,211 33,461 6,968 Trustees fees and expenses (Note 7) 4,498 1,799 1,424 7,203 Transfer agent fee for Series III (Note 5) - 54 - 113 Blue sky fees for Series III (Note 5) - 114 - 119 Miscellaneous 9,879 2,887 3,822 10,138 ------------- ------------- ------------- ------------- Expenses before reductions by investment adviser 2,222,579 1,624,311 370,730 4,305,906 Less reductions of expenses by investment adviser (Note 5) - (168) (73,283) (232) ------------- ------------- ------------- ------------- Total expenses 2,222,579 1,624,143 297,447 4,305,674 ------------- ------------- ------------- ------------- Net investment income (loss) 1,751,830 910,435 1,026,275 3,046,187 ------------- ------------- ------------- ------------- Realized and unrealized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions (19,847,634) (927,654) (354,253) (1,282,681) Futures contracts - - 113,665 - Foreign currency and forward foreign currency contracts - - - (62,076) Change in unrealized appreciation (depreciation) on: Investments 101,874,284 52,170,119 17,714,342 115,859,410 Futures contracts - - 101,076 - Translation of foreign currency and forward foreign currency contracts - - - 221 ------------- ------------- ------------- ------------- Net gain (loss) on investments, futures, foreign currency and forward foreign currency contracts 82,026,650 51,242,465 17,574,830 114,514,874 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 83,778,480 $ 52,152,900 $ 18,601,105 $ 117,561,061 ============= ============= ============= =============
The accompanying notes are an integral part of the financial statements. 29 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
GROWTH & GREAT COMPANIES- INCOME & INCOME AMERICA EQUITY-INCOME VALUE TRUST TRUST * TRUST TRUST ------------- ---------------- ------------- ------------- Investment Income: Interest $ 121,361 $ 260 $ 529,778 $ 7,519,446 Dividends 25,051,850 14,740 33,083,308 4,717,642 Securities lending 16,512 88 71,143 66,448 Less: Foreign taxes withheld - - (170,979) (59,432) ------------- ------------- ------------- ------------- Total income 25,189,723 15,088 33,513,250 12,244,104 ------------- ------------- ------------- ------------- Expenses: Investment adviser fee (Note 5) 8,314,092 7,159 9,193,136 3,432,039 Distribution fee for Series I (Note 6) 2,157,552 - 1,638,202 716,503 Distribution fee for Series II (Note 6) 260,575 3,341 649,100 176,180 Distribution fee for Series III (Note 6) 1 - 9 - Custodian fee 286,920 6,161 258,789 210,592 Fund administration fees (Note 5) 195,692 105 155,952 67,124 Printing and postage fees 130,800 108 101,602 45,697 Audit and legal fees 64,701 12,707 54,865 30,196 Registration and filing fees 21,627 355 19,658 8,452 Trustees fees and expenses (Note 7) 28,187 19 22,370 9,831 Transfer agent fee for Series III (Note 5) 13 - 126 - Blue sky fees for Series III (Note 5) 111 - 120 - Miscellaneous 47,057 37 34,654 14,979 ------------- ------------- ------------- ------------- Expenses before reductions by investment adviser 11,507,328 29,992 12,128,583 4,711,593 Less reductions of expenses by investment adviser (Note 5) (124) (14,722) (323,437) - ------------- ------------- ------------- ------------- Total expenses 11,507,204 15,270 11,805,146 4,711,593 ------------- ------------- ------------- ------------- Net investment income (loss) 13,682,519 (182) 21,708,104 7,532,511 ------------- ------------- ------------- ------------- Realized and unrealized gain (loss) on investments, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions (34,180,718) 2,538 19,636,616 (27,342,026) Foreign currency and forward foreign currency contracts - - (24,446) 567 Change in unrealized appreciation (depreciation) on: Investments 379,920,334 268,774 268,362,773 145,168,697 Translation of foreign currency and forward foreign currency contracts - - - (224) ------------- ------------- ------------- ------------- Net gain (loss) on investments, foreign currency and forward foreign currency contracts 345,739,616 271,312 287,974,943 117,827,014 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 359,422,135 $ 271,130 $ 309,683,047 $ 125,359,525 ============= ============= ============= =============
* For the period August 4, 2003 (commencement of operations) to December 31, 2003. The accompanying notes are an integral part of the financial statements. 30 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
GLOBAL ALLOCATION TRUST HIGH STRATEGIC BALANCED (FORMERLY, TACTICAL YIELD BOND TRUST ALLOCATION TRUST) TRUST TRUST ------------ ------------------- ------------- ------------ Investment Income: Interest $ 2,580,834 $ 331,361 $ 52,379,136 $ 30,205,630 Dividends 1,363,178 991,416 1,523,450 53,235 Securities lending 2,556 618 139,372 65,408 Less: Foreign taxes withheld (3,736) (27,243) - - ------------ ------------ ------------- ------------ Total income 3,942,832 1,296,152 54,041,958 30,324,273 ------------ ------------ ------------- ------------ Expenses: Investment adviser fee (Note 5) 826,923 498,796 3,904,182 3,254,319 Distribution fee for Series I (Note 6) 201,015 84,189 724,321 647,377 Distribution fee for Series II (Note 6) 41,280 36,330 566,167 325,421 Distribution fee for Series III (Note 6) - - 19 16 Custodian fee 76,741 179,779 236,947 271,598 Fund administration fees (Note 5) 19,385 8,556 66,835 66,395 Printing and postage fees 13,040 5,820 38,064 41,848 Audit and legal fees 17,373 14,492 37,757 37,428 Registration and filing fees 2,268 973 8,966 8,688 Trustees fees and expenses (Note 7) 2,812 1,262 8,973 9,642 Transfer agent fee for Series III (Note 5) - - 261 234 Blue sky fees for Series III (Note 5) - - 131 129 Miscellaneous 4,541 2,697 16,723 17,380 ------------ ------------ ------------- ------------ Expenses before reductions by investment adviser 1,205,378 832,894 5,609,346 4,680,475 Less reductions of expenses by investment adviser (Note 5) - - (392) (363) ------------ ------------ ------------- ------------ Total expenses 1,205,378 832,894 5,608,954 4,680,112 ------------ ------------ ------------- ------------ Net investment income (loss) 2,737,454 463,258 48,433,004 25,644,161 ------------ ------------ ------------- ------------ Realized and unrealized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions (6,147,456) (14,658,888) (17,561,268) 17,585,205 Futures contracts - - (2,013,218) (1,208,707) Foreign currency and forward foreign currency contracts 804 192,691 815,221 347,304 Change in unrealized appreciation (depreciation) on: Investments 23,054,596 30,077,301 99,672,955 23,582,492 Futures contracts - - 1,928,746 (575,940) Translation of foreign currency and forward foreign currency contracts (337) (17,366) 935,429 (1,799,008) ------------ ------------ ------------- ------------ Net gain (loss) on investments, futures, foreign currency and forward foreign currency contracts 16,907,607 15,593,738 83,777,865 37,931,346 ------------ ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations $ 19,645,061 $ 16,056,996 $ 132,210,869 $ 63,575,507 ============ ============ ============= ============
The accompanying notes are an integral part of the financial statements. 31 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
GLOBAL DIVERSIFIED INVESTMENT TOTAL BOND BOND QUALITY BOND RETURN TRUST TRUST TRUST TRUST ------------ ------------ ------------ ------------ Investment Income: Interest $ 8,828,809 $ 16,534,802 $ 29,300,452 $ 47,134,268 Dividends 102,296 - 17,650 - Securities lending 15,710 32,545 65,404 81,372 Less: Foreign taxes withheld (16,321) - - - ------------ ------------ ------------ ------------ Total income 8,930,494 16,567,347 29,383,506 47,215,640 ------------ ------------ ------------ ------------ Expenses: Investment adviser fee (Note 5) 1,481,608 2,209,424 2,581,493 8,627,857 Distribution fee for Series I (Note 6) 298,940 483,683 675,698 1,606,875 Distribution fee for Series II (Note 6) 166,739 160,231 238,157 1,283,307 Distribution fee for Series III (Note 6) 6 8 28 335 Custodian fee 291,633 164,989 319,664 477,551 Fund administration fees (Note 5) 32,668 50,780 72,107 189,425 Printing and postage fees 20,963 31,304 44,390 105,915 Audit and legal fees 30,699 30,932 38,795 72,717 Registration and filing fees 4,678 6,631 9,326 24,542 Trustees fees and expenses (Note 7) 4,702 7,369 10,072 26,009 Transfer agent fee for Series III (Note 5) 90 - 405 4,081 Blue sky fees for Series III (Note 5) 117 - 143 445 Miscellaneous 10,177 10,761 15,386 46,393 ------------ ------------ ------------ ------------ Expenses before reductions by investment adviser 2,343,020 3,156,112 4,005,664 12,465,452 Less reductions of expenses by investment adviser (Note 5) (207) - (548) (4,526) ------------ ------------ ------------ ------------ Total expenses 2,342,813 3,156,112 4,005,116 12,460,926 ------------ ------------ ------------ ------------ Net investment income (loss) 6,587,681 13,411,235 25,378,390 34,754,714 ------------ ------------ ------------ ------------ Realized and unrealized gain (loss) on investments, futures, options, swaps, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions 7,024,867 7,325,966 3,782,936 11,670,168 Futures contracts 990,848 - 74,259 7,584,806 Written options contracts (3,466,444) - - 5,297,083 Interest rate swaps (2,559,131) - - (4,925,543) Foreign currency and forward foreign currency contracts 16,559,135 85 - 1,403,557 Change in unrealized appreciation (depreciation) on: Investments 6,357,033 (4,274,207) 7,203,944 8,086,649 Futures contracts 357,486 - (192,504) (2,247,572) Written options contracts (31,451) - - 1,893,091 Interest rate swaps 1,670,959 - - 2,405,668 Translation of foreign currency and forward foreign currency contracts (183,127) (34) - 2,576,055 ------------ ------------ ------------ ------------ Net gain (loss) on investments, futures, options, swaps, foreign currency and forward foreign currency contracts 26,720,175 3,051,810 10,868,635 33,743,962 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $ 33,307,856 $ 16,463,045 $ 36,247,025 $ 68,498,676 ============ ============ ============ ============
The accompanying notes are an integral part of the financial statements. 32 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
REAL RETURN U.S. GOVERNMENT MONEY SMALL CAP BOND SECURITIES MARKET INDEX TRUST * TRUST TRUST TRUST ------------ --------------- ------------ ------------ Investment Income: Interest $ 2,365,708 $ 18,555,874 $ 17,079,013 $ 188,209 Dividends - - - 1,048,609 Securities lending 1,057 - - 34,618 Less: Foreign taxes withheld - - - (452) ------------ ------------ ------------ ------------ Total income 2,366,765 18,555,874 17,079,013 1,270,984 ------------ ------------ ------------ ------------ Expenses: Investment adviser fee (Note 5) 801,605 4,213,924 5,235,724 402,004 Distribution fee for Series I (Note 6) 114,742 948,886 1,918,710 129,195 Distribution fee for Series II (Note 6) 199,865 674,467 756,973 73,744 Distribution fee for Series III (Note 6) 9 105 2,517 7 Custodian fee 45,503 336,927 284,069 18,000 Fund administration fees (Note 5) 13,888 118,038 218,467 10,964 Printing and postage fees 13,130 64,267 135,683 7,640 Audit and legal fees 21,269 44,844 70,708 15,694 Registration and filing fees 3,047 14,952 27,573 1,603 Trustees fees and expenses (Note 7) 2,259 15,652 31,552 1,618 Transfer agent fee for Series III (Note 5) 130 1,255 33,444 108 Blue sky fees for Series III (Note 5) 121 213 2,852 119 Miscellaneous 7,787 22,378 38,095 2,243 ------------ ------------ ------------ ------------ Expenses before reductions by investment adviser 1,223,355 6,455,908 8,756,367 662,939 Less reductions of expenses by investment adviser (Note 5) (251) (1,468) (36,296) (227) ------------ ------------ ------------ ------------ Total expenses 1,223,104 6,454,440 8,720,071 662,712 ------------ ------------ ------------ ------------ Net investment income (loss) 1,143,661 12,101,434 8,358,942 608,272 ------------ ------------ ------------ ------------ Realized and unrealized gain (loss) on investments, futures, options, swaps, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions 5,137,877 18,335,985 - 570,622 Futures contracts 10 (69,845) - 6,690,256 Written options contracts (16,406) - - - Interest rate swaps (27,915) - - - Foreign currency and forward foreign currency contracts (25,840) - - - Change in unrealized appreciation (depreciation) on: Investments 3,458,488 (16,915,926) - 32,910,619 Futures contracts (1,100) (369,128) - 842,081 Written options contracts 112,919 - - - Interest rate swaps 28,971 - - - Translation of foreign currency and forward foreign currency contracts (44,151) - - - ------------ ------------ ------------ ------------ Net gain (loss) on investments, futures, options, swaps, foreign currency and forward foreign currency contracts 8,622,853 981,086 - 41,013,578 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $ 9,766,514 $ 13,082,520 $ 8,358,942 $ 41,621,850 ============ ============ ============ ============
* For the period May 5, 2003 (commencement of operations) to December 31, 2003. The accompanying notes are an integral part of the financial statements. 33 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
INTERNATIONAL MID CAP TOTAL STOCK 500 INDEX INDEX MARKET INDEX INDEX TRUST TRUST TRUST TRUST ------------- ------------ ------------ ------------- Investment Income: Interest $ 100,566 $ 84,319 $ 125,909 $ 186,993 Dividends 1,738,747 1,462,186 1,636,933 15,427,150 Securities lending 40,689 15,421 7,173 27,367 Less: Foreign taxes withheld (181,628) - (217) - ------------ ------------ ------------ ------------- Total income 1,698,374 1,561,926 1,769,798 15,641,510 ------------ ------------ ------------ ------------- Expenses: Investment adviser fee (Note 5) 288,461 489,790 405,708 3,290,414 Distribution fee for Series I (Note 6) 91,075 158,827 138,452 1,205,928 Distribution fee for Series II (Note 6) 39,893 86,540 55,606 257,214 Distribution fee for Series III (Note 6) 1 - + - + 12 Custodian fee 18,000 18,000 18,000 85,592 Fund administration fees (Note 5) 8,514 14,958 11,392 106,414 Printing and postage fees 5,770 10,066 8,085 72,822 Audit and legal fees 14,996 16,754 15,822 41,230 Registration and filing fees 1,140 2,071 1,624 14,051 Trustees fees and expenses (Note 7) 1,244 2,188 1,712 15,637 Transfer agent fee for Series III (Note 5) 5 5 5 135 Blue sky fees for Series III (Note 5) 110 110 110 121 Miscellaneous 1,826 3,932 4,945 23,357 ------------ ------------ ------------ ------------- Expenses before reductions by investment adviser 471,035 803,241 661,461 5,112,927 Less reductions of expenses by investment adviser (Note 5) (15,331) (115) (115) (256) ------------ ------------ ------------ ------------- Total expenses 455,704 803,126 661,346 5,112,671 ------------ ------------ ------------ ------------- Net investment income (loss) 1,242,670 758,800 1,108,452 10,528,839 ------------ ------------ ------------ ------------- Realized and unrealized gain (loss) on investments, futures, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions (133,078) (538,515) (2,414,471) (2,966,130) Futures contracts 1,405,755 2,015,469 2,705,866 1,626,950 Foreign currency and forward foreign currency contracts (276,496) - - - Change in unrealized appreciation (depreciation) on: Investments 21,167,085 38,733,113 29,822,622 216,497,982 Futures contracts 193,204 99,724 313,041 855,181 Translation of foreign currency and forward foreign currency contracts (9,093) - - - ------------ ------------ ------------ ------------- Net gain (loss) on investments, futures, foreign currency and forward foreign currency contracts 22,347,377 40,309,791 30,427,058 216,013,983 ------------ ------------ ------------ ------------- Net increase (decrease) in net assets resulting from operations $ 23,590,047 $ 41,068,591 $ 31,535,510 $ 226,542,822 ============ ============ ============ =============
+ Rounds to less than $1. The accompanying notes are an integral part of the financial statements. 34 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE AGGRESSIVE 1000 GROWTH 820 BALANCED 640 MODERATE 460 TRUST TRUST TRUST TRUST --------------- ------------- ------------- ------------- Investment Income: Income distributions received $ 863,484 $ 10,435,511 $ 22,070,007 $ 11,356,725 ------------- ------------- ------------- ------------- Total income 863,484 10,435,511 22,070,007 11,356,725 ------------- ------------- ------------- ------------- Expenses: Investment adviser fee (Note 5) 180,863 650,210 747,831 302,152 Distribution fee for Series III (Note 6) 1 - + 11 - + Fund administration fees (Note 5) 33,797 139,626 163,326 64,398 Audit and legal fees 21,731 50,474 56,701 29,796 Registration and filing fees 2,042 8,877 10,750 4,349 Trustees fees and expenses (Note 7) 5,003 20,565 24,019 9,431 Transfer agent fee for Series III (Note 5) 50 31 450 18 Blue sky fees for Series III (Note 5) 114 113 147 112 Miscellaneous 3,130 12,615 13,962 5,120 ------------- ------------- ------------- ------------- Expenses before reductions by investment adviser 246,731 882,511 1,017,197 415,376 Less reductions of expenses by investment adviser (Note 5) (12,934) (144) (597) (130) ------------- ------------- ------------- ------------- Total expenses 233,797 882,367 1,016,600 415,246 ------------- ------------- ------------- ------------- Net investment income (loss) 629,687 9,553,144 21,053,407 10,941,479 ------------- ------------- ------------- ------------- Realized and unrealized gain (loss) on investments: Net realized gain (loss) on: Investment transactions (2,679,944) (1,255,485) 26,761,312 9,437,052 Capital gain distributions received 238,829 2,668,830 8,517,698 3,702,356 Change in unrealized appreciation (depreciation) on: Investments 105,973,948 339,229,915 274,682,779 71,269,154 ------------- ------------- ------------- ------------- Net gain (loss) on investments 103,532,833 340,643,260 309,961,789 84,408,562 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 104,162,520 $ 350,196,404 $ 331,015,196 $ 95,350,041 ============= ============= ============= =============
+ Rounds to less than $1. The accompanying notes are an integral part of the financial statements. 35 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
LIFESTYLE SMALL-MID INTERNATIONAL HIGH GRADE CONSERVATIVE 280 CAP EQUITY SELECT BOND TRUST TRUST TRUST TRUST ---------------- ------------ ------------- ------------ Investment Income: Interest - $ 52,926 $ 20,994 $ 4,240,320 Dividends - 928,121 2,326,860 - Income distributions received $ 10,904,294 - - - Securities lending - 23,118 52,413 16,339 Less: Foreign taxes withheld - - (272,596) - ------------ ------------ ------------- ------------ Total income 10,904,294 1,004,165 2,127,671 4,256,659 ------------ ------------ ------------- ------------ Expenses: Investment adviser fee (Note 5) 220,906 1,019,650 719,514 716,128 Distribution fee for Series I (Note 6) - 118,505 88,826 139,517 Distribution fee for Series II (Note 6) - 99,148 72,550 123,542 Distribution fee for Series III (Note 6) 46 2 1 9 Custodian fee - 52,484 129,709 53,863 Fund administration fees (Note 5) 48,505 11,825 8,982 14,606 Printing and postage fees - 9,607 7,349 11,610 Audit and legal fees 25,526 15,983 15,639 14,550 Registration and filing fees 3,248 1,863 1,319 2,135 Trustees fees and expenses (Note 7) 7,099 1,703 1,291 2,097 Transfer agent fee for Series III (Note 5) 2,281 - - - Blue sky fees for Series III (Note 5) 297 - - - Miscellaneous 3,672 2,227 1,628 9,663 ------------ ------------ ------------- ------------ Expenses before reductions by investment adviser 311,580 1,332,997 1,046,808 1,087,720 Less reductions of expenses by investment adviser (Note 5) (17,675) - (46,008) - ------------ ------------ ------------- ------------ Total expenses 293,905 1,332,997 1,000,800 1,087,720 ------------ ------------ ------------- ------------ Net investment income (loss) 10,610,389 (328,832) 1,126,871 3,168,939 ------------ ------------ ------------- ------------ Realized and unrealized gain (loss) on investments, foreign currency and forward foreign currency contracts: Net realized gain (loss) on: Investment transactions 6,385,834 585,006 453,260 198,012 Foreign currency and forward foreign currency contracts - - (22,158) - Capital gain distributions received 2,904,221 - - - Change in unrealized appreciation (depreciation) on: Investments 23,769,758 25,597,132 21,997,217 (1,910,640) Translation of foreign currency and forward foreign currency contracts - - 2,049 - ------------ ------------ ------------- ------------ Net gain (loss) on investments, foreign currency and forward foreign currency contracts 33,059,813 26,182,138 22,430,368 (1,712,628) ------------ ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations $ 43,670,202 $ 25,853,306 $ 23,557,239 $ 1,456,311 ============ ============ ============= ============
The accompanying notes are an integral part of the financial statements. 36 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 2003
AMERICAN AMERICAN AMERICAN AMERICAN BLUE CHIP GROWTH INTERNATIONAL GROWTH-INCOME INCOME AND GROWTH TRUST * TRUST * TRUST * TRUST * ------------ ------------- ------------- ------------------ Investment Income: Dividends $ 244,387 $ 1,912,377 $ 1,328,387 - ------------ ------------ ------------ ------------ Total income 244,387 1,912,377 1,328,387 - ------------ ------------ ------------ ------------ Expenses: Distribution fee for Series I (Note 6) 2,607 2,550 751 $ 1,103 Distribution fee for Series II (Note 6) 400,988 369,681 251,628 358,954 Fund administration fees (Note 5) 4,507 7,321 2,573 6,505 Printing and postage fees 4,564 6,941 2,665 6,214 Audit and legal fees 10,438 11,152 9,831 10,936 Registration and filing fees 1,403 1,720 829 1,603 Trustees fees and expenses (Note 7) 772 1,192 443 1,068 Miscellaneous 584 1,454 313 1,224 ------------ ------------ ------------ ------------ Total expenses 425,863 402,011 269,033 387,607 ------------ ------------ ------------ ------------ Net investment income (loss) (181,476) 1,510,366 1,059,354 (387,607) ------------ ------------ ------------ ------------ Realized and unrealized gain (loss) on investments: Net realized gain (loss) on: Investment transactions 316,735 4,268,613 378,046 24,745 Change in unrealized appreciation (depreciation) on: Investments 23,779,663 27,474,298 15,391,112 23,727,477 ------------ ------------ ------------ ------------ Net gain (loss) on investments 24,096,398 31,742,911 15,769,158 23,752,222 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $ 23,914,922 $ 33,253,277 $ 16,828,512 $ 23,364,615 ============ ============ ============ ============
* For the period May 5, 2003 (commencement of operations) to December 31, 2003. The accompanying notes are an integral part of the financial statements. 37 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
SCIENCE & PACIFIC RIM TECHNOLOGY EMERGING MARKETS TRUST TRUST ----------------------------- ----------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 -------------- -------------- ------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($3,995,607) ($4,286,470) $ 454,341 $ 133,370 Net realized gain (loss) on: Investment transactions (54,186,358) (220,505,159) (1,191,780) (3,044,571) Written options contracts - - - - Foreign currency and forward foreign currency contracts (14,580) (72,462) (99,877) (37,189) Change in unrealized appreciation (depreciation) on: Investments 259,087,159 (59,515,606) 23,850,264 (3,962,255) Written options contracts - - - - Foreign currency and forward foreign currency contracts 290 9 (2,783) 5,972 -------------- -------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 200,890,904 (284,379,688) 23,010,165 (6,904,673) Distribution to shareholders from: Net investment income Series I - - (79,371) (67,906) Series II - - (12,910) (43) Net realized short term gains on investments, futures, and foreign currency transactions Series I - - - - Series II - - - - -------------- -------------- ------------- ------------- Total distributions - - (92,281) (67,949) Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 89,527,697 62,081,562 137,958,252 165,878,887 Reinvestment of distributions - - 79,371 67,906 Cost of shares redeemed (118,224,502) (149,187,997) (136,713,813) (169,242,574) Proceeds from shares issued in connection with reorganization (Note 1) 41,314,229 - - - -------------- -------------- ------------- ------------- Total Series I transactions 12,617,424 (87,106,435) 1,323,810 (3,295,781) Series II Net proceeds from sales of shares 38,341,623 13,571,630 56,984,927 32,640,217 Reinvestment of distributions - - 12,910 43 Cost of shares redeemed (6,151,399) (2,055,320) (45,257,098) (28,129,368) Proceeds from shares issued in connection with reorganization (Note 1) 7,920,788 - - - -------------- -------------- ------------- ------------- Total Series II transactions 40,111,012 11,516,310 11,740,739 4,510,892 Series III Net proceeds from sales of shares 12,594 - 6,009 - Cost of shares redeemed (6,679) - (3,093) - -------------- -------------- ------------- ------------- Total Series III transactions 5,915 - 2,916 - Net increase (decrease) in net assets from capital share transactions 52,734,351 (75,590,125) 13,067,465 1,215,111 -------------- -------------- ------------- ------------- Increase (decrease) in net assets 253,625,255 (359,969,813) 35,985,349 (5,757,511) Net assets at beginning of period 369,617,120 729,586,933 50,223,535 55,981,046 -------------- -------------- ------------- ------------- Net assets at end of period $ 623,242,375 $ 369,617,120 $ 86,208,884 $ 50,223,535 ============== ============== ============= ============= Undistributed net investment income (loss) - - $ 386,136 $ 96,181 ============== ============== ============= ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 9,667,375 6,383,441 19,382,842 24,554,014 Reinvestment of distributions - - 14,671 9,591 Shares redeemed (12,829,869) (16,061,882) (19,114,680) (25,072,621) Shares issued in connection with reorganization (Note 1) 4,759,704 - - - -------------- -------------- ------------- ------------- Net increase (decrease) 1,597,210 (9,678,441) 282,833 (509,016) ============== ============== ============= ============= Series II Shares sold 4,027,780 1,728,531 8,965,635 5,058,620 Reinvestment of distributions - - 2,386 6 Shares redeemed (650,029) (271,219) (7,291,408) (4,320,960) Shares issued in connection with reorganization (Note 1) 912,533 - - -------------- -------------- ------------- ------------- Net increase (decrease) 4,290,284 1,457,312 1,676,613 737,666 ============== ============== ============= ============= Series III Shares sold 1,186 - 755 - Shares redeemed (637) - (393) - -------------- -------------- ------------- ------------- Net increase (decrease) 549 - 362 - ============== ============== ============= ============= HEALTH SCIENCES TRUST ---------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 -------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($1,016,220) ($526,682) Net realized gain (loss) on: Investment transactions 1,451,554 (8,947,897) Written options contracts 993,358 407,902 Foreign currency and forward foreign currency contracts (10,411) (2,436) Change in unrealized appreciation (depreciation) on: Investments 32,000,602 (12,943,681) Written options contracts 691,808 (68,440) Foreign currency and forward foreign currency contracts (19) 487 -------------- ------------- Net increase (decrease) in net assets resulting from operations 34,110,672 (22,080,747) Distribution to shareholders from: Net investment income Series I - - Series II - - Net realized short term gains on investments, futures, and foreign currency transactions Series I - (154,834) Series II - (294) -------------- ------------- Total distributions - (155,128) Capital Shares Transactions ++ : Series I Net proceeds from sales of shares 28,537,648 46,197,297 Reinvestment of distributions - 154,834 Cost of shares redeemed (13,989,412) (14,213,777) Proceeds from shares issued in connection with reorganization (Note 1) - - -------------- ------------- Total Series I transactions 14,548,236 32,138,354 Series II Net proceeds from sales of shares 29,341,593 16,714,764 Reinvestment of distributions - 294 Cost of shares redeemed (1,253,548) (185,358) Proceeds from shares issued in connection with reorganization (Note 1) - - -------------- ------------- Total Series II transactions 28,088,045 16,529,700 Series III Net proceeds from sales of shares 42,919 - Cost of shares redeemed (8,281) - -------------- ------------- Total Series III transactions 34,638 - Net increase (decrease) in net assets from capital share transactions 42,670,919 48,668,054 -------------- ------------- Increase (decrease) in net assets 76,781,591 26,432,179 Net assets at beginning of period 77,999,721 51,567,542 -------------- ------------- Net assets at end of period $ 154,781,312 $ 77,999,721 ============== ============= Undistributed net investment income (loss) - - ============== ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 2,422,196 3,875,954 Reinvestment of distributions - 12,839 Shares redeemed (1,206,935) (1,384,522) Shares issued in connection with reorganization (Note 1) - - -------------- ------------- Net increase (decrease) 1,215,261 2,504,271 ============== ============= Series II Shares sold 2,518,844 1,638,592 Reinvestment of distributions - 24 Shares redeemed (103,957) (18,527) Shares issued in connection with reorganization (Note 1) - -------------- ------------- Net increase (decrease) 2,414,887 1,620,089 ============== ============= Series III Shares sold 3,388 - Shares redeemed (640) - -------------- ------------- Net increase (decrease) 2,748 - ============== =============
The accompanying notes are an integral part of the financial statements. 38 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
EMERGING AGGRESSIVE GROWTH GROWTH TRUST TRUST ------------ ------------------------------ 05/05/2003* YEAR YEAR TO ENDED ENDED 12/31/2003 12/31/2003 12/31/2002 ------------ -------------- -------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($36,694) ($2,174,917) ($2,151,875) Net realized gain (loss) on: Investment transactions 625,248 (3,581,642) (52,271,497) Written options contracts - 27,218 - Foreign currency and forward foreign currency contracts - - - Change in unrealized appreciation (depreciation) on: Investments 657,847 82,529,333 (24,456,023) Written options contracts - 11,497 - Foreign currency and forward foreign currency contracts - - - ------------ -------------- -------------- Net increase (decrease) in net assets resulting from operations 1,246,401 76,811,489 (78,879,395) Distribution to shareholders from: Net realized short term gains on investments, futures, and foreign currency transactions Series I (118,331) - - Series II (228,962) - - Series III (4) - - ------------ -------------- -------------- Total distributions (347,297) - - Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 2,736,305 46,648,776 90,256,267 Reinvestment of distributions 118,331 - - Cost of shares redeemed (68,203) (79,138,654) (96,207,266) ------------ -------------- -------------- Total Series I transactions 2,786,433 (32,489,878) (5,950,999) Series II Net proceeds from sales of shares 6,397,588 28,116,335 19,065,993 Reinvestment of distributions 228,962 - - Cost of shares redeemed (1,054,181) (14,152,388) (861,419) ------------ -------------- -------------- Total Series II transactions 5,572,369 13,963,947 18,204,574 Series III Net proceeds from sales of shares 100 192 - Reinvestment of distributions 4 - - Cost of shares redeemed - (6) - ------------ -------------- -------------- Total Series III transactions 104 186 - Net increase (decrease) in net assets from capital share transactions 8,358,906 (18,525,745) 12,253,575 ------------ -------------- -------------- Increase (decrease) in net assets 9,258,010 58,285,744 (66,625,820) Net assets at beginning of period - 243,120,272 309,746,092 ------------ -------------- -------------- Net assets at end of period $ 9,258,010 $ 301,406,016 $ 243,120,272 ============ ============== ============== Undistributed net investment income (loss) - - - ============ ============== ============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 198,870 4,327,513 7,652,648 Reinvestment of distributions 7,423 - - Shares redeemed (4,512) (7,422,269) (8,328,687) ------------ -------------- -------------- Net increase (decrease) 201,781 (3,094,756) (676,039) ============ ============== ============== Series II Shares sold 441,551 2,557,029 1,824,408 Reinvestment of distributions 14,382 - - Shares redeemed (69,392) (1,264,397) (78,065) ------------ -------------- -------------- Net increase (decrease) 386,541 1,292,632 1,746,343 ============ ============== ============== Series III Shares sold 7 15 - Shares redeemed - + - + - ------------ -------------- -------------- Net increase (decrease) 7 15 - ============ ============== ============== EMERGING SMALL COMPANY TRUST ------------------------------ YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 --------------- --------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($2,283,757) ($2,115,850) Net realized gain (loss) on: Investment transactions (11,730,417) (46,195,893) Written options contracts - - Foreign currency and forward foreign currency contracts 527 (31) Change in unrealized appreciation (depreciation) on: Investments 144,059,646 (83,535,512) Written options contracts - - Foreign currency and forward foreign currency contracts 21 - -------------- -------------- Net increase (decrease) in net assets resulting from operations 130,046,020 (131,847,286) Distribution to shareholders from: Net realized short term gains on investments, futures, and foreign currency transactions Series I - - Series II - - Series III - - -------------- -------------- Total distributions - - Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 69,413,573 75,144,206 Reinvestment of distributions - - Cost of shares redeemed (75,236,064) (97,579,481) -------------- -------------- Total Series I transactions (5,822,491) (22,435,275) Series II Net proceeds from sales of shares 53,969,432 21,591,400 Reinvestment of distributions - - Cost of shares redeemed (5,309,310) (3,596,353) -------------- -------------- Total Series II transactions 48,660,122 17,995,047 Series III Net proceeds from sales of shares 12,311 - Reinvestment of distributions - - Cost of shares redeemed (11,777) - -------------- -------------- Total Series III transactions 534 - Net increase (decrease) in net assets from capital share transactions 42,838,165 (4,440,228) -------------- -------------- Increase (decrease) in net assets 172,884,185 (136,287,514) Net assets at beginning of period 311,385,746 447,673,260 -------------- -------------- Net assets at end of period $ 484,269,931 $ 311,385,746 ============== ============== Undistributed net investment income (loss) - $ 89,642 ============== ============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 3,188,609 3,469,815 Reinvestment of distributions - - Shares redeemed (3,528,616) (4,734,571) -------------- -------------- Net increase (decrease) (340,007) (1,264,756) ============== ============== Series II Shares sold 2,495,921 1,148,348 Reinvestment of distributions - - Shares redeemed (240,658) (183,482) -------------- -------------- Net increase (decrease) 2,255,263 964,866 ============== ============== Series III Shares sold 513 - Shares redeemed (488) - -------------- -------------- Net increase (decrease) 25 - ============== ==============
* Commencement of operations + Rounds to less than 1 share. The accompanying notes are an integral part of the financial statements. 39 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
SMALL COMPANY DYNAMIC BLEND GROWTH TRUST TRUST ------------------------------- ------------------------------ YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 -------------- -------------- -------------- -------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($194,346) ($51,229) ($949,441) ($618,941) Net realized gain (loss) on: Investment transactions (8,444,140) (15,712,171) 15,051,422 (46,090,275) Foreign currency and forward foreign currency contracts - (26) 23 - Change in unrealized appreciation (depreciation) on: Investments 64,215,879 (34,136,138) 25,874,818 8,004,166 Foreign currency and forward foreign currency contracts 7 - (14) - -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 55,577,400 (49,899,564) 39,976,808 (38,705,050) Distribution to shareholders from: Net investment income Series I - (329,892) - - Series II - (326) - - -------------- -------------- -------------- -------------- Total distributions - (330,218) - - Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 54,915,053 93,368,317 24,233,424 47,280,410 Reinvestment of distributions - 329,892 - - Cost of shares redeemed (53,205,995) (99,171,706) (27,389,832) (77,707,954) Proceeds from shares issued in connection with reorganization (Note 1) - - 47,815,177 - -------------- -------------- -------------- -------------- Total Series I transactions 1,709,058 (5,473,497) 44,658,769 (30,427,544) Series II Net proceeds from sales of shares 35,867,061 21,964,043 12,532,103 8,996,081 Reinvestment of distributions - 326 - - Cost of shares redeemed (4,999,947) (5,139,852) (4,140,776) (4,585,297) Proceeds from shares issued in connection with reorganization (Note 1) - - 20,967,893 - -------------- -------------- -------------- -------------- Total Series II transactions 30,867,114 16,824,517 29,359,220 4,410,784 Series III Net proceeds from sales of shares - - - - Cost of shares redeemed - - - - -------------- -------------- -------------- -------------- Total Series III transactions - - - - Net increase (decrease) in net assets from capital share transactions 32,576,172 11,351,020 74,017,989 (26,016,760) -------------- -------------- -------------- -------------- Increase (decrease) in net assets 88,153,572 (38,878,762) 113,994,797 (64,721,810) Net assets at beginning of period 122,371,205 161,249,967 67,987,477 132,709,287 -------------- -------------- -------------- -------------- Net assets at end of period $ 210,524,777 $ 122,371,205 $ 181,982,274 $ 67,987,477 ============== ============== ============== ============== Undistributed net investment income (loss) - $ 28,599 - - ============== ============== ============== ============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 5,920,573 9,248,420 6,733,357 11,559,876 Reinvestment of distributions - 29,246 - - Shares redeemed (5,728,663) (10,932,505) (7,338,074) (20,701,671) Shares issued in connection with reorganization (Note 1) - - 13,739,993 - -------------- -------------- -------------- -------------- Net increase (decrease) 191,910 (1,654,839) 13,135,276 (9,141,795) ============== ============== ============== ============== Series II Shares sold 3,807,670 2,555,734 3,306,519 2,526,899 Reinvestment of distributions - 29 - - Shares redeemed (525,478) (591,600) (1,067,335) (1,277,793) Shares issued in connection with reorganization (Note 1) - - 6,025,256 - -------------- -------------- -------------- -------------- Net increase (decrease) 3,282,192 1,964,163 8,264,440 1,249,106 ============== ============== ============== ============== Series III Shares sold - - - - Shares redeemed - - - - -------------- -------------- -------------- -------------- Net increase (decrease) - - - - ============== ============== ============== ============== MID CAP STOCK TRUST ----------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 -------------- -------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($1,610,004) ($879,339) Net realized gain (loss) on: Investment transactions 20,391,397 (21,013,424) Foreign currency and forward foreign currency contracts (6,329) - Change in unrealized appreciation (depreciation) on: Investments 77,436,540 (24,713,683) Foreign currency and forward foreign currency contracts - - -------------- -------------- Net increase (decrease) in net assets resulting from operations 96,211,604 (46,606,446) Distribution to shareholders from: Net investment income Series I - - Series II - - -------------- -------------- Total distributions - - Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 71,030,362 114,919,507 Reinvestment of distributions - - Cost of shares redeemed (71,168,795) (36,311,014) Proceeds from shares issued in connection with reorganization (Note 1) - - -------------- -------------- Total Series I transactions (138,433) 78,608,493 Series II Net proceeds from sales of shares 75,232,911 32,848,496 Reinvestment of distributions - - Cost of shares redeemed (13,377,891) (20,616) Proceeds from shares issued in connection with reorganization (Note 1) - - -------------- -------------- Total Series II transactions 61,855,020 32,827,880 Series III Net proceeds from sales of shares 5,679 - Cost of shares redeemed (22) - -------------- -------------- Total Series III transactions 5,657 - Net increase (decrease) in net assets from capital share transactions 61,722,244 111,436,373 -------------- -------------- Increase (decrease) in net assets 157,933,848 64,829,927 Net assets at beginning of period 218,561,784 153,731,857 -------------- -------------- Net assets at end of period $ 376,495,632 $ 218,561,784 ============== ============== Undistributed net investment income (loss) - - ============== ============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 7,129,990 12,149,866 Reinvestment of distributions - - Shares redeemed (7,620,903) (4,004,324) Shares issued in connection with reorganization (Note 1) - - -------------- -------------- Net increase (decrease) (490,913) 8,145,542 ============== ============== Series II Shares sold 7,464,557 3,794,815 Reinvestment of distributions - - Shares redeemed (1,432,245) (2,445) Shares issued in connection with reorganization (Note 1) - - -------------- -------------- Net increase (decrease) 6,032,312 3,792,370 ============== ============== Series III Shares sold 498 - Shares redeemed (2) - -------------- -------------- Net increase (decrease) 496 - ============== ==============
The accompanying notes are an integral part of the financial statements. 40 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
NATURAL ALL CAP RESOURCES GROWTH TRUST TRUST ------------- ------------------------------- 05/05/2003* YEAR YEAR TO ENDED ENDED 12/31/2003 12/31/2003 12/31/2002 ------------- -------------- -------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 323,035 ($2,088,892) ($2,205,652) Net realized gain (loss) on: Investment transactions 4,834,228 (33,767,028) (84,499,924) Written options contracts - 66,113 - Foreign currency and forward foreign currency contracts (103,715) 47,358 (2,841) Change in unrealized appreciation (depreciation) on: Investments 39,255,276 171,359,467 (66,276,952) Foreign currency and forward foreign currency contracts (10) 1,248 228 ------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 44,308,814 135,618,266 (152,985,141) Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 84,751,738 79,114,145 317,508,353 Cost of shares redeemed (22,547,243) (136,821,341) (347,133,744) ------------- -------------- -------------- Total Series I transactions 62,204,495 (57,707,196) (29,625,391) Series II Net proceeds from sales of shares 62,393,849 59,216,014 26,446,231 Cost of shares redeemed (3,926,609) (11,294,540) (65,835) ------------- -------------- -------------- Total Series II transactions 58,467,240 47,921,474 26,380,396 Series III Net proceeds from sales of shares 2,106 2,184 - Cost of shares redeemed (502) (444) - ------------- -------------- -------------- Total Series III transactions 1,604 1,740 - Net increase (decrease) in net assets from capital share transactions 120,673,339 (9,783,982) (3,244,995) ------------- -------------- -------------- Increase (decrease) in net assets 164,982,153 125,834,284 (156,230,136) Net assets at beginning of period - 481,648,539 637,878,675 ------------- -------------- -------------- Net assets at end of period $ 164,982,153 $ 607,482,823 $ 481,648,539 ============= ============== ============== Undistributed net investment income (loss) $ 219,320 - - ============= ============== ============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 6,476,905 6,411,883 25,311,489 Shares redeemed (1,471,188) (11,275,832) (27,584,559) ------------- -------------- -------------- Net increase (decrease) 5,005,717 (4,863,949) (2,273,070) ============= ============== ============== Series II Shares sold 4,432,406 4,737,080 2,240,927 Shares redeemed (266,720) (899,248) (5,564) ------------- -------------- -------------- Net increase (decrease) 4,165,686 3,837,832 2,235,363 ============= ============== ============== Series III Shares sold 135 159 - Shares redeemed (32) (32) - ------------- -------------- -------------- Net increase (decrease) 103 127 - ============= ============== ============== STRATEGIC OPPORTUNITIES TRUST ------------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 ------------- ---------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 465,981 ($2,127,017) Net realized gain (loss) on: Investment transactions 17,835,740 (319,907,029) Written options contracts - - Foreign currency and forward foreign currency contracts 8,857 2,293 Change in unrealized appreciation (depreciation) on: Investments 102,044,091 (57,889,793) Foreign currency and forward foreign currency contracts 435 - ------------- ---------------- Net increase (decrease) in net assets resulting from operations 120,355,104 (379,921,546) Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 45,395,850 95,768,060 Cost of shares redeemed (141,662,316) (260,712,860) ------------- ---------------- Total Series I transactions (96,266,466) (164,944,800) Series II Net proceeds from sales of shares 17,621,858 10,561,435 Cost of shares redeemed (7,598,716) (232,596) ------------- ---------------- Total Series II transactions 10,023,142 10,328,839 Series III Net proceeds from sales of shares - - Cost of shares redeemed - - ------------- ---------------- Total Series III transactions - - Net increase (decrease) in net assets from capital share transactions (86,243,324) (154,615,961) ------------- ---------------- Increase (decrease) in net assets 34,111,780 (534,537,507) Net assets at beginning of period 522,747,439 1,057,284,946 ------------- ---------------- Net assets at end of period $ 556,859,219 $ 522,747,439 ============= ================ Undistributed net investment income (loss) $ 474,838 - ============= ================ +++ Capital Shares Issued and Redeemed: Series I Shares sold 5,341,203 9,137,968 Shares redeemed (16,873,818) (26,468,005) ------------- ---------------- Net increase (decrease) (11,532,615) (17,330,037) ============= ================ Series II Shares sold 2,066,405 1,213,059 Shares redeemed (888,784) (25,756) ------------- ---------------- Net increase (decrease) 1,177,621 1,187,303 ============= ================ Series III Shares sold - - Shares redeemed - - ------------- ---------------- Net increase (decrease) - - ============= ================
* Commencement of operations The accompanying notes are an integral part of the financial statements. 41 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
FINANCIAL INTERNATIONAL SERVICES STOCK TRUST TRUST ----------------------------- ----------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------- ------------- ------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 330,624 $ 125,947 $ 3,049,246 $ 1,993,663 Net realized gain (loss) on: Investment transactions (1,645,293) (247,226) 1,862,497 (96,303,225) Futures contracts - - - - Foreign currency and forward foreign currency contracts (3,574) (3,672) 434,591 (311,943) Change in unrealized appreciation (depreciation) on: Investments 21,509,955 (8,338,394) 83,476,094 33,456,169 Futures contracts - - - - Foreign currency and forward foreign currency contracts 1,119 638 221,167 19,035 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 20,192,831 (8,462,707) 89,043,595 (61,146,301) Distribution to shareholders from: Net investment income Series I (75,872) (776) (1,347,480) (1,142,522) Series II (45,474) (1) (290,493) (2,394) ------------- ------------- ------------- ------------- Total distributions (121,346) (777) (1,637,973) (1,144,916) Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 8,503,153 29,841,915 150,556,443 324,893,636 Reinvestment of distributions 75,872 776 1,347,480 1,142,522 Cost of shares redeemed (5,840,990) (9,472,101) (176,552,232) (283,668,418) ------------- ------------- ------------- ------------- Total Series I transactions 2,738,035 20,370,590 (24,648,309) 42,367,740 Series II Net proceeds from sales of shares 18,066,043 12,682,318 158,500,527 132,492,980 Reinvestment of distributions 45,474 1 290,493 2,394 Cost of shares redeemed (1,386,472) (159,903) (112,260,897) (98,457,046) ------------- ------------- ------------- ------------- Total Series II transactions 16,725,045 12,522,416 46,530,123 34,038,328 Series III Net proceeds from sales of shares 275 - 2,676 - Cost of shares redeemed - - (523) - ------------- ------------- ------------- ------------- Total Series III transactions 275 - 2,153 - Net increase (decrease) in net assets from capital share transactions 19,463,355 32,893,006 21,883,967 76,406,068 ------------- ------------- ------------- ------------- Increase (decrease) in net assets 39,534,840 24,429,522 109,289,589 14,114,851 Net assets at beginning of period 49,269,382 24,839,860 279,468,017 265,353,166 ------------- ------------- ------------- ------------- Net assets at end of period $ 88,804,222 $ 49,269,382 $ 388,757,606 $ 279,468,017 ============= ============= ============= ============= Undistributed net investment income (loss) $ 327,050 $ 121,346 $ 3,486,712 $ 1,640,848 ============= ============= ============= ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 786,009 2,663,493 19,536,505 38,146,013 Reinvestment of distributions 8,054 66 192,773 120,519 Shares redeemed (561,012) (910,391) (22,865,372) (32,960,549) ------------- ------------- ------------- ------------- Net increase (decrease) 233,051 1,753,168 (3,136,094) 5,305,983 ============= ============= ============= ============= Series II Shares sold 1,705,986 1,288,107 20,770,735 16,617,226 Reinvestment of distributions 4,833 - + 41,618 253 Shares redeemed (119,149) (15,679) (14,895,185) (12,250,958) ------------- ------------- ------------- ------------- Net increase (decrease) 1,591,670 1,272,428 5,917,168 4,366,521 ============= ============= ============= ============= Series III Shares sold 24 - 298 - Shares redeemed - - (58) - ------------- ------------- ------------- ------------- Net increase (decrease) 24 - 240 - ============= ============= ============= ============= OVERSEAS TRUST ----------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 ------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,698,180 $ 1,425,504 Net realized gain (loss) on: Investment transactions (7,817,201) (68,751,502) Futures contracts (81) (124,542) Foreign currency and forward foreign currency contracts 211,354 409,427 Change in unrealized appreciation (depreciation) on: Investments 150,019,040 (18,154,975) Futures contracts - 141,107 Foreign currency and forward foreign currency contracts (2,665) 110,708 ------------- ------------- Net increase (decrease) in net assets resulting from operations 144,108,627 (84,944,273) Distribution to shareholders from: Net investment income Series I (1,565,434) (2,259,622) Series II (267,380) (2,466) ------------- ------------- Total distributions (1,832,814) (2,262,088) Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 220,315,461 434,400,047 Reinvestment of distributions 1,565,434 2,259,622 Cost of shares redeemed (272,853,576) (480,880,475) ------------- ------------- Total Series I transactions (50,972,681) (44,220,806) Series II Net proceeds from sales of shares 146,312,780 110,872,742 Reinvestment of distributions 267,380 2,466 Cost of shares redeemed (104,216,939) (81,835,697) ------------- ------------- Total Series II transactions 42,363,221 29,039,511 Series III Net proceeds from sales of shares 5,487 - Cost of shares redeemed (1,197) - ------------- ------------- Total Series III transactions 4,290 - Net increase (decrease) in net assets from capital share transactions (8,605,170) (15,181,295) ------------- ------------- Increase (decrease) in net assets 133,670,643 (102,387,656) Net assets at beginning of period 326,523,090 428,910,746 ------------- ------------- Net assets at end of period $ 460,193,733 $ 326,523,090 ============= ============= Undistributed net investment income (loss) $ 1,840,993 $ 1,832,814 ============= ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 30,417,573 56,528,419 Reinvestment of distributions 251,678 266,465 Shares redeemed (37,294,195) (62,227,345) ------------- ------------- Net increase (decrease) (6,624,944) (5,432,461) ============= ============= Series II Shares sold 20,630,608 14,707,951 Reinvestment of distributions 43,056 291 Shares redeemed (14,756,316) (10,569,926) ------------- ------------- Net increase (decrease) 5,917,348 4,138,316 ============= ============= Series III Shares sold 647 - Shares redeemed (135) - ------------- ------------- Net increase (decrease) 512 - ============= =============
+ Rounds to less than 1 share. The accompanying notes are an integral part of the financial statements. 42 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
INTERNATIONAL INTERNATIONAL SMALL CAP VALUE TRUST TRUST ----------------------------- ----------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------- -------------- ------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,245,124 ($536,289) $ 6,419,358 $ 3,567,957 Net realized gain (loss) on: Investment transactions 9,754,341 (15,996,477) (2,365,483) (20,349,911) Foreign currency and forward foreign currency contracts (840,137) (1,495,318) (577,316) (439,667) Change in unrealized appreciation (depreciation) on: Investments 88,922,359 (3,243,133) 116,610,107 (31,587,996) Foreign currency and forward foreign currency contracts 36,379 26,593 17,775 8,653 ------------- -------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 99,118,066 (21,244,624) 120,104,441 (48,800,964) Distribution to shareholders from: Net investment income Series I - - (2,357,769) (1,845,865) Series II - - (771,328) (10,182) ------------- -------------- ------------- ------------- Total distributions - - (3,129,097) (1,856,047) Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 177,300,618 123,339,058 130,822,974 241,687,921 Reinvestment of distributions - - 2,357,769 1,845,865 Cost of shares redeemed (114,139,167) (148,771,242) (174,928,138) (174,371,556) ------------- -------------- ------------- ------------- Total Series I transactions 63,161,451 (25,432,184) (41,747,395) 69,162,230 Series II Net proceeds from sales of shares 65,541,936 53,923,666 111,270,964 111,996,689 Reinvestment of distributions - - 771,328 10,182 Cost of shares redeemed (13,417,387) (48,843,179) (60,686,594) (59,507,157) ------------- -------------- ------------- ------------- Total Series II transactions 52,124,549 5,080,487 51,355,698 52,499,714 Series III Net proceeds from sales of shares 12,330 - 1,528 - Cost of shares redeemed (4,605) - (306) - ------------- -------------- ------------- ------------- Total Series III transactions 7,725 - 1,222 - Net increase (decrease) in net assets from capital share transactions 115,293,725 (20,351,697) 9,609,525 121,661,944 ------------- -------------- ------------- ------------- Increase (decrease) in net assets 214,411,791 (41,596,321) 126,584,869 71,004,933 Net assets at beginning of period 104,854,218 146,450,539 279,235,176 208,230,243 ------------- -------------- ------------- ------------- Net assets at end of period $ 319,266,009 $ 104,854,218 $ 405,820,045 $ 279,235,176 ============= ============== ============= ============= Undistributed net investment income (loss) $ 425,381 $ 20,394 $ 5,842,037 $ 3,129,092 ============= ============== ============= ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 16,235,268 11,271,548 13,935,487 24,697,491 Reinvestment of distributions - - 290,366 172,350 Shares redeemed (9,993,284) (13,606,960) (19,128,138) (18,023,775) ------------- -------------- ------------- ------------- Net increase (decrease) 6,241,984 (2,335,412) (4,902,285) 6,846,066 ============= ============== ============= ============= Series II Shares sold 5,792,723 5,270,604 11,909,510 12,391,116 Reinvestment of distributions - - 95,108 952 Shares redeemed (1,243,123) (4,755,533) (6,603,284) (6,538,373) ------------- -------------- ------------- ------------- Net increase (decrease) 4,549,600 515,071 5,401,334 5,853,695 ============= ============== ============= ============= Series III Shares sold 935 - 136 - Shares redeemed (349) - (27) - ------------- -------------- ------------- ------------- Net increase (decrease) 586 - 109 - ============= ============== ============= ============= QUANTITATIVE MID CAP TRUST ------------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 -------------- -------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($104,477) ($62,332) Net realized gain (loss) on: Investment transactions 6,379,227 (20,817,229) Foreign currency and forward foreign currency contracts - - Change in unrealized appreciation (depreciation) on: Investments 25,313,489 (2,930,155) Foreign currency and forward foreign currency contracts - - -------------- -------------- Net increase (decrease) in net assets resulting from operations 31,588,239 (23,809,716) Distribution to shareholders from: Net investment income Series I - - Series II - - -------------- -------------- Total distributions - - Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 10,812,710 12,086,469 Reinvestment of distributions - - Cost of shares redeemed (8,428,222) (9,894,067) -------------- -------------- Total Series I transactions 2,384,488 2,192,402 Series II Net proceeds from sales of shares 4,202,695 2,405,861 Reinvestment of distributions - - Cost of shares redeemed (768,398) (73,029) -------------- -------------- Total Series II transactions 3,434,297 2,332,832 Series III Net proceeds from sales of shares - - Cost of shares redeemed - - -------------- -------------- Total Series III transactions - - Net increase (decrease) in net assets from capital share transactions 5,818,785 4,525,234 -------------- -------------- Increase (decrease) in net assets 37,407,024 (19,284,482) Net assets at beginning of period 80,261,256 99,545,738 -------------- -------------- Net assets at end of period $ 117,668,280 $ 80,261,256 ============== ============== Undistributed net investment income (loss) - - ============== ============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 1,133,815 1,288,548 Reinvestment of distributions - - Shares redeemed (926,717) (1,160,826) -------------- -------------- Net increase (decrease) 207,098 127,722 ============== ============== Series II Shares sold 465,950 288,636 Reinvestment of distributions - - Shares redeemed (77,624) (8,557) -------------- -------------- Net increase (decrease) 388,326 280,079 ============== ============== Series III Shares sold - - Shares redeemed - - -------------- -------------- Net increase (decrease) - - ============== ==============
The accompanying notes are an integral part of the financial statements. 43 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
MID CAP CORE GLOBAL EQUITY TRUST TRUST -------------- ----------------------------- 05/05/2003* YEAR YEAR TO ENDED ENDED 12/31/2003 12/31/2003 12/31/2002 -------------- ------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($38,711) $ 3,324,766 $ 3,199,303 Net realized gain (loss) on: Investment transactions 580,482 23,780,580 (78,658,784) Written options contracts - - 37,675 Foreign currency and forward foreign currency contracts - 3,070,804 291,104 Change in unrealized appreciation (depreciation) on: Investments 5,971,693 58,070,915 (20,577,620) Foreign currency and forward foreign currency contracts - 51,590 (49,892) -------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 6,513,464 88,298,655 (95,758,214) Distribution to shareholders from: Net investment income Series I - (3,244,249) (6,110,807) Series II - (129,209) (771) -------------- ------------- ------------- Total distributions - (3,373,458) (6,111,578) Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 24,540,343 109,754,844 205,957,908 Reinvestment of distributions - 3,244,249 6,110,807 Cost of shares redeemed (8,410,153) (178,484,978) (291,017,530) -------------- ------------- ------------- Total Series I transactions 16,130,190 (65,485,885) (78,948,815) Series II Net proceeds from sales of shares 26,999,728 25,622,495 17,946,790 Reinvestment of distributions - 129,209 771 Cost of shares redeemed (305,561) (18,507,196) (9,033,747) -------------- ------------- ------------- Total Series II transactions 26,694,167 7,244,508 8,913,814 Series III Net proceeds from sales of shares 162 100 - Cost of shares redeemed (5) - - -------------- ------------- ------------- Total Series III transactions 157 100 - Net increase (decrease) in net assets from capital share transactions 42,824,514 (58,241,277) (70,035,001) -------------- ------------- ------------- Increase (decrease) in net assets 49,337,978 26,683,920 (171,904,793) Net assets at beginning of period - 356,122,062 528,026,855 -------------- ------------- ------------- Net assets at end of period $ 49,337,978 $ 382,805,982 $ 356,122,062 ============== ============= ============= Undistributed net investment income (loss) - $ 6,493,268 $ 3,471,156 ============== ============= ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 1,860,759 9,904,249 17,755,927 Reinvestment of distributions - 323,132 479,279 Shares redeemed (585,331) (15,977,294) (25,412,753) -------------- ------------- ------------- Net increase (decrease) 1,275,428 (5,749,913) (7,177,547) ============== ============= ============= Series II Shares sold 1,969,682 2,340,426 1,674,457 Reinvestment of distributions - 12,895 60 Shares redeemed (22,221) (1,666,468) (856,018) -------------- ------------- ------------- Net increase (decrease) 1,947,461 686,853 818,499 ============== ============= ============= Series III Shares sold 11 8 - Shares redeemed - + - - -------------- ------------- ------------- Net increase (decrease) 11 8 - ============== ============= ============= STRATEGIC GROWTH TRUST -------------- -------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 -------------- -------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($283,932) ($240,731) Net realized gain (loss) on: Investment transactions 2,419,447 (18,319,336) Written options contracts - - Foreign currency and forward foreign currency contracts 164 1,385 Change in unrealized appreciation (depreciation) on: Investments 46,489,374 (18,780,468) Foreign currency and forward foreign currency contracts (202) 98 -------------- -------------- Net increase (decrease) in net assets resulting from operations 48,624,851 (37,339,052) Distribution to shareholders from: Net investment income Series I - - Series II - - -------------- -------------- Total distributions - - Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 52,317,692 101,310,270 Reinvestment of distributions - - Cost of shares redeemed (45,026,938) (24,014,298) -------------- -------------- Total Series I transactions 7,290,754 77,295,972 Series II Net proceeds from sales of shares 53,389,325 26,219,379 Reinvestment of distributions - - Cost of shares redeemed (5,199,968) (45,598) -------------- -------------- Total Series II transactions 48,189,357 26,173,781 Series III Net proceeds from sales of shares 1,804 - Cost of shares redeemed (300) - -------------- -------------- Total Series III transactions 1,504 - Net increase (decrease) in net assets from capital share transactions 55,481,615 103,469,753 -------------- -------------- Increase (decrease) in net assets 104,106,466 66,130,701 Net assets at beginning of period 157,523,387 91,392,686 -------------- -------------- Net assets at end of period $ 261,629,853 $ 157,523,387 ============== ============== Undistributed net investment income (loss) - ($ 2) ============== ============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 5,934,963 11,306,122 Reinvestment of distributions - - Shares redeemed (5,183,817) (2,951,465) -------------- -------------- Net increase (decrease) 751,146 8,354,657 ============== ============== Series II Shares sold 6,005,651 3,212,934 Reinvestment of distributions - - Shares redeemed (586,203) (5,687) -------------- -------------- Net increase (decrease) 5,419,448 3,207,247 ============== ============== Series III Shares sold 187 - Shares redeemed (31) - -------------- -------------- Net increase (decrease) 156 - ============== ==============
* Commencement of operations + Rounds to less than 1 share. The accompanying notes are an integral part of the financial statements. 44 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
CAPITAL QUANTITATIVE APPRECIATION ALL CAP TRUST TRUST --------------- --------------- ------------- YEAR YEAR 05/05/2003* ENDED ENDED TO 12/31/2003 12/31/2002 12/31/2003 -------------- -------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($289,496) ($87,148) $ 1,796 Net realized gain (loss) on: Investment transactions (2,362,073) (12,629,047) 315,737 Futures contracts - - - Written options contracts 2,452 5,011 - Foreign currency and forward foreign currency contracts - - - Change in unrealized appreciation (depreciation) on: Investments 42,108,116 (12,008,839) 494,380 Futures contracts - - - Foreign currency and forward foreign currency contracts - - - -------------- -------------- ------------- Net increase (decrease) in net assets resulting from operations 39,458,999 (24,720,023) 811,913 Distribution to shareholders from: Net investment income Series I - - (1,831) Net realized short term gains on investments, futures, and foreign currency transactions Series I - - (68,073) Series II - - (81,412) Series III - - (4) -------------- -------------- ------------- Total distributions - - (151,320) Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 36,495,352 89,461,624 2,400,588 Reinvestment of distributions - - 69,904 Cost of shares redeemed (43,309,494) (6,253,440) (640,706) -------------- -------------- ------------- Total Series I transactions (6,814,142) 83,208,184 1,829,786 Series II Net proceeds from sales of shares 44,733,129 24,851,653 2,133,704 Reinvestment of distributions - - 81,412 Cost of shares redeemed (7,423,714) (428,886) (23,083) -------------- -------------- ------------- Total Series II transactions 37,309,415 24,422,767 2,192,033 Series III Net proceeds from sales of shares 1,909 - 100 Reinvestment of distributions - - 4 Cost of shares redeemed (417) - - -------------- -------------- ------------- Total Series III transactions 1,492 - 104 Net increase (decrease) in net assets from capital share transactions 30,496,765 107,630,951 4,021,923 -------------- -------------- ------------- Increase (decrease) in net assets 69,955,764 82,910,928 4,682,516 Net assets at beginning of period 123,113,323 40,202,395 - -------------- -------------- ------------- Net assets at end of period $ 193,069,087 $ 123,113,323 $ 4,682,516 ============== ============== ============= Undistributed net investment income (loss) - - - ============== ============== ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 5,254,750 12,603,971 182,287 Reinvestment of distributions - - 4,642 Shares redeemed (6,384,809) (928,469) (44,737) -------------- -------------- ------------- Net increase (decrease) (1,130,059) 11,675,502 142,192 ============== ============== ============= Series II Shares sold 6,441,331 3,725,904 165,130 Reinvestment of distributions - - 5,406 Shares redeemed (1,096,887) (65,565) (1,615) -------------- -------------- ------------- Net increase (decrease) 5,344,444 3,660,339 168,921 ============== ============== ============= Series III Shares sold 248 - 7 Shares redeemed (54) - - + -------------- -------------- ------------- Net increase (decrease) 194 - 7 ============== ============== ============= ALL CAP CORE TRUST ----------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 ------------- -------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,210,378 ($784,074) Net realized gain (loss) on: Investment transactions 16,097,202 (149,517,568) Futures contracts 5,938,356 916,882 Written options contracts - - Foreign currency and forward foreign currency contracts - 4 Change in unrealized appreciation (depreciation) on: Investments 45,332,054 30,157,672 Futures contracts 404,634 (277,869) Foreign currency and forward foreign currency contracts - 18 ------------- -------------- Net increase (decrease) in net assets resulting from operations 68,982,624 (119,504,935) Distribution to shareholders from: Net investment income Series I - - Net realized short term gains on investments, futures, and foreign currency transactions Series I - - Series II - - Series III - - ------------- -------------- Total distributions - - Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 53,627,524 85,681,279 Reinvestment of distributions - - Cost of shares redeemed (99,983,013) (217,033,764) ------------- -------------- Total Series I transactions (46,355,489) (131,352,485) Series II Net proceeds from sales of shares 14,370,413 18,980,299 Reinvestment of distributions - - Cost of shares redeemed (10,360,326) (14,866,776) ------------- -------------- Total Series II transactions 4,010,087 4,113,523 Series III Net proceeds from sales of shares - - Reinvestment of distributions - - Cost of shares redeemed - - ------------- -------------- Total Series III transactions - - Net increase (decrease) in net assets from capital share transactions (42,345,402) (127,238,962) ------------- -------------- Increase (decrease) in net assets 26,637,222 (246,743,897) Net assets at beginning of period 247,779,299 494,523,196 ------------- -------------- Net assets at end of period $ 274,416,521 $ 247,779,299 ============= ============== Undistributed net investment income (loss) $ 1,210,378 $ 2,465 ============= ============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 4,738,173 7,440,732 Reinvestment of distributions - - Shares redeemed (8,817,052) (19,545,109) ------------- -------------- Net increase (decrease) (4,078,879) (12,104,377) ============= ============== Series II Shares sold 1,237,543 1,787,749 Reinvestment of distributions - - Shares redeemed (900,736) (1,375,858) ------------- -------------- Net increase (decrease) 336,807 411,891 ============= ============== Series III Shares sold - - Shares redeemed - - ------------- -------------- Net increase (decrease) - - ============= ==============
* Commencement of operations + Rounds to less than 1 share. The accompanying notes are an integral part of the financial statements. 45 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
LARGE CAP QUANTITATIVE GROWTH EQUITY TRUST TRUST -------------------------------- ---------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 --------------- --------------- --------------- ---------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,272,523 $ 1,195,877 $ 2,066,036 $ 1,699,756 Net realized gain (loss) on: Investment transactions (15,721,398) (101,396,423) (26,617,264) (78,405,216) Futures contracts - - 121,935 - Foreign currency and forward foreign currency contracts 9,656 10,995 - - Change in unrealized appreciation (depreciation) on: Investments 116,432,026 (21,541,306) 77,836,476 (42,523,220) Foreign currency and forward foreign currency contracts 490 1,355 - - --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations 101,993,297 (121,729,502) 53,407,183 (119,228,680) Distribution to shareholders from: Net investment income Series I (1,026,829) (1,466,869) (1,621,111) (1,077,319) Series II (179,918) (574) (78,645) (312) --------------- --------------- --------------- --------------- Total distributions (1,206,747) (1,467,443) (1,699,756) (1,077,631) Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 53,195,042 109,387,325 55,189,326 48,658,659 Reinvestment of distributions 1,026,829 1,466,869 1,621,111 1,077,319 Cost of shares redeemed (96,410,252) (114,678,857) (98,833,640) (128,922,344) --------------- --------------- --------------- --------------- Total Series I transactions (42,188,381) (3,824,663) (42,023,203) (79,186,366) Series II Net proceeds from sales of shares 46,459,522 34,290,234 19,140,800 10,977,852 Reinvestment of distributions 179,918 574 78,645 312 Cost of shares redeemed (6,961,271) (1,056,960) (9,675,736) (3,968,754) --------------- --------------- --------------- --------------- Total Series II transactions 39,678,169 33,233,848 9,543,709 7,009,410 Series III Net proceeds from sales of shares - - 359 - Cost of shares redeemed - - (3) - --------------- --------------- --------------- --------------- Total Series III transactions - - 356 - Net increase (decrease) in net assets from capital share transactions (2,510,212) 29,409,185 (32,479,138) (72,176,956) --------------- --------------- --------------- --------------- Increase (decrease) in net assets 98,276,338 (93,787,760) 19,228,289 (192,483,267) Net assets at beginning of period 402,261,410 496,049,170 255,519,221 448,002,488 --------------- --------------- --------------- --------------- Net assets at end of period $ 500,537,748 $ 402,261,410 $ 274,747,510 $ 255,519,221 =============== =============== =============== =============== Undistributed net investment income (loss) $ 1,282,179 $ 1,206,747 $ 2,066,036 $ 1,699,756 =============== =============== =============== =============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 6,577,969 12,013,359 4,201,855 3,412,190 Reinvestment of distributions 135,287 152,958 135,093 66,093 Shares redeemed (11,859,625) (13,584,739) (7,600,958) (9,452,519) --------------- --------------- --------------- --------------- Net increase (decrease) (5,146,369) (1,418,422) (3,264,010) (5,974,236) =============== =============== =============== =============== Series II Shares sold 5,719,048 4,280,434 1,449,174 854,245 Reinvestment of distributions 23,767 60 6,570 19 Shares redeemed (828,981) (133,912) (739,100) (305,878) --------------- --------------- --------------- --------------- Net increase (decrease) 4,913,834 4,146,582 716,644 548,386 =============== =============== =============== =============== Series III Shares sold - - 25 - Shares redeemed - - - + - --------------- --------------- --------------- --------------- Net increase (decrease) - - 25 - =============== =============== =============== =============== BLUE CHIP GROWTH TRUST --------------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 --------------- --------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,685,803 $ 679,264 Net realized gain (loss) on: Investment transactions (44,128,547) (97,420,643) Futures contracts - - Foreign currency and forward foreign currency contracts (65,275) (21,033) Change in unrealized appreciation (depreciation) on: Investments 373,187,550 (299,335,543) Foreign currency and forward foreign currency contracts - - --------------- --------------- Net increase (decrease) in net assets resulting from operations 330,679,531 (396,097,955) Distribution to shareholders from: Net investment income Series I (509,443) - Series II (148,788) - --------------- --------------- Total distributions (658,231) - Capital Shares Transactions +++ : Series I Net proceeds from sales of shares 90,129,451 102,059,564 Reinvestment of distributions 509,443 - Cost of shares redeemed (188,704,658) (248,553,822) --------------- --------------- Total Series I transactions (98,065,764) (146,494,258) Series II Net proceeds from sales of shares 124,289,590 63,952,070 Reinvestment of distributions 148,788 - Cost of shares redeemed (15,366,112) (403,255) --------------- --------------- Total Series II transactions 109,072,266 63,548,815 Series III Net proceeds from sales of shares 7,902 - Cost of shares redeemed (2,041) - --------------- --------------- Total Series III transactions 5,861 - Net increase (decrease) in net assets from capital share transactions 11,012,363 (82,945,443) --------------- --------------- Increase (decrease) in net assets 341,033,663 (479,043,398) Net assets at beginning of period 1,154,150,389 1,633,193,787 --------------- --------------- Net assets at end of period $ 1,495,184,052 $ 1,154,150,389 =============== =============== Undistributed net investment income (loss) $ 1,620,528 $ 658,231 =============== =============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 6,693,442 7,368,083 Reinvestment of distributions 41,723 - Shares redeemed (14,503,745) (19,403,977) --------------- --------------- Net increase (decrease) (7,768,580) (12,035,894) =============== =============== Series II Shares sold 9,288,064 5,154,561 Reinvestment of distributions 12,206 - Shares redeemed (1,159,528) (32,776) --------------- --------------- Net increase (decrease) 8,140,742 5,121,785 =============== =============== Series III Shares sold 541 - Shares redeemed (140) - --------------- --------------- Net increase (decrease) 401 - =============== ===============
+ Rounds to less than 1 share. The accompanying notes are an integral part of the financial statements. 46 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
U.S. LARGE CAP TRUST STRATEGIC VALUE TRUST (FORMERLY, U.S. LARGE CAP VALUE (FORMERLY, CAPITAL OPPORTUNITIES TRUST) TRUST) ------------------------------- -------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------- ------------- ------------ ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,829,752 $ 2,176,699 $ 583,723 $ 15,689 Net realized gain (loss) on: Investment transactions (33,864,011) (49,977,233) 4,372,341 (9,456,696) Foreign currency and forward foreign currency contracts - (15) (27) (616) Change in unrealized appreciation (depreciation) on: Investments 185,849,158 (98,616,719) 19,745,838 (3,752,244) Foreign currency and forward foreign currency contracts - - - 14 ------------- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 153,814,899 (146,417,268) 24,701,875 (13,193,853) Distribution to shareholders from: Net investment income Series I (1,711,671) (1,470,095) (6,035) - Series II (465,013) (2,214) (8,833) - Net realized short term gains on investments, futures, and foreign currency transactions Series I - - - - Series II - - - - ------------- ------------- ------------ ------------ Total distributions (2,176,684) (1,472,309) (14,868) - Capital Shares Transactions +++: Series I Net proceeds from sales of shares 50,887,322 212,495,407 53,215,124 20,221,645 Reinvestment of distributions 1,711,671 1,470,095 6,035 - Cost of shares redeemed (139,884,777) (202,591,933) (9,745,798) (6,563,912) ------------- ------------- ------------ ------------ Total Series I transactions (87,285,784) 11,373,569 43,475,361 13,657,733 Series II Net proceeds from sales of shares 74,464,786 70,257,236 35,572,792 6,241,849 Reinvestment of distributions 465,013 2,214 8,833 - Cost of shares redeemed (23,604,563) (10,829,841) (733,974) (75,645) ------------- ------------- ------------ ------------ Total Series II transactions 51,325,236 59,429,609 34,847,651 6,166,204 Series III Net proceeds from sales of shares 1,397 - 1,348 - Cost of shares redeemed (273) - (252) - ------------- ------------- ------------ ------------ Total Series III transactions 1,124 - 1,096 - Net increase (decrease) in net assets from capital share transactions (35,959,424) 70,803,178 78,324,108 19,823,937 ------------- ------------- ------------ ------------ Increase (decrease) in net assets 115,678,791 (77,086,399) 103,011,115 6,630,084 Net assets at beginning of period 441,535,028 518,621,427 40,057,675 33,427,591 ------------- ------------- ------------ ------------ Net assets at end of period $ 557,213,819 $ 441,535,028 $143,068,790 $ 40,057,675 ============= ============= ============ ============ Undistributed net investment income (loss) $ 1,829,752 $ 2,176,684 $ 583,696 $ 14,868 ============= ============= ============ ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 4,874,267 19,884,248 6,246,585 2,067,410 Reinvestment of distributions 178,671 118,748 779 - Shares redeemed (13,440,044) (20,531,460) (1,099,861) (806,809) ------------- ------------- ------------ ------------ Net increase (decrease) (8,387,106) (528,464) 5,147,503 1,260,601 ============= ============= ============ ============ Series II Shares sold 7,114,758 7,373,376 4,069,575 768,574 Reinvestment of distributions 48,642 179 1,141 - Shares redeemed (2,255,208) (1,070,625) (83,071) (9,534) ------------- ------------- ------------ ------------ Net increase (decrease) 4,908,192 6,302,930 3,987,645 759,040 ============= ============= ============ ============ Series III Shares sold 116 - 143 - Shares redeemed (22) - (27) - ------------- ------------- ------------ ------------ Net increase (decrease) 94 - 116 - ============= ============= ============ ============ LARGE CAP VALUE TRUST ------------- 05/05/2003* TO 12/31/2003 ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ (8,251) Net realized gain (loss) on: Investment transactions 432,453 Foreign currency and forward foreign currency contracts - Change in unrealized appreciation (depreciation) on: Investments 1,293,298 Foreign currency and forward foreign currency contracts - ----------- Net increase (decrease) in net assets resulting from operations 1,717,500 Distribution to shareholders from: Net investment income Series I - Series II - Net realized short term gains on investments, futures, and foreign currency transactions Series I (85,667) Series II (147,536) ----------- Total distributions (233,203) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 6,104,722 Reinvestment of distributions 85,667 Cost of shares redeemed (571,699) ----------- Total Series I transactions 5,618,690 Series II Net proceeds from sales of shares 8,349,362 Reinvestment of distributions 147,536 Cost of shares redeemed (1,419,741) ----------- Total Series II transactions 7,077,157 Series III Net proceeds from sales of shares - Cost of shares redeemed - ----------- Total Series III transactions - Net increase (decrease) in net assets from capital share transactions 12,695,847 ----------- Increase (decrease) in net assets 14,180,144 Net assets at beginning of period - ----------- Net assets at end of period $14,180,144 =========== Undistributed net investment income (loss) - =========== +++ Capital Shares Issued and Redeemed: Series I Shares sold 428,503 Reinvestment of distributions 5,467 Shares redeemed (37,881) ----------- Net increase (decrease) 396,089 =========== Series II Shares sold 601,086 Reinvestment of distributions 9,427 Shares redeemed (100,420) ----------- Net increase (decrease) 510,093 =========== Series III Shares sold - Shares redeemed - ----------- Net increase (decrease) - ===========
* Commencement of operations The accompanying notes are an integral part of the financial statements. 47 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
REAL ESTATE SMALL CAP UTILITIES SECURITIES OPPORTUNITIES TRUST TRUST TRUST ------------------------ -------------------------- ------------ YEAR YEAR YEAR YEAR 05/05/2003* ENDED ENDED ENDED ENDED TO 12/31/2003 12/31/2002 12/31/2003 12/31/2002 12/31/2003 ----------- ----------- ------------ ------------ ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 618,028 $ 435,140 $ 17,512,055 $15,617,212 $ 84,066 Net realized gain (loss) on: Investment transactions 4,288,999 (6,210,190) 15,030,159 (5,249,849) 388,900 Futures contracts - - - - 933,878 Foreign currency and forward foreign currency contracts (5,696) 77 125 - (530) Change in unrealized appreciation (depreciation) on: Investments 6,991,872 102,536 124,300,806 (9,128,919) 13,523,952 Foreign currency and forward foreign currency contracts 1,101 (1) - - 18 ----------- ----------- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 11,894,304 (5,672,438) 156,843,145 1,238,444 14,930,284 Distribution to shareholders from: Net investment income Series I (302,041) (1,029) (9,155,261) (8,221,598) - Series II (133,134) (4) (2,017,857) (16,358) - ----------- ----------- ------------ ------------ ------------ Total distributions (435,175) (1,033) (11,173,118) (8,237,956) - Capital Shares Transactions +++: Series I Net proceeds from sales of shares 14,618,583 13,402,339 88,403,839 132,094,233 37,212,037 Reinvestment of distributions 302,041 1,029 9,155,261 8,221,598 - Cost of shares redeemed (8,731,938) (5,268,847) (65,287,689) (51,566,669) (11,368,704) ----------- ----------- ------------ ------------ ------------ Total Series I transactions 6,188,686 8,134,521 32,271,411 88,749,162 25,843,333 Series II Net proceeds from sales of shares 11,652,752 6,527,895 91,134,766 52,666,454 29,384,067 Reinvestment of distributions 133,134 4 2,017,857 16,358 - Cost of shares redeemed (1,647,472) (101,782) (6,645,457) (3,533,107) (1,219,242) ----------- ----------- ------------ ------------ ------------ Total Series II transactions 10,138,414 6,426,117 86,507,166 49,149,705 28,164,825 Series III Net proceeds from sales of shares 100 - 29,790 - 494 Cost of shares redeemed - - (9,953) - (18) ----------- ----------- ------------ ------------ ------------ Total Series III transactions 100 - 19,837 - 476 Net increase (decrease) in net assets from capital share transactions 16,327,200 14,560,638 118,798,414 137,898,867 54,008,634 ----------- ----------- ------------ ------------ ------------ Increase (decrease) in net assets 27,786,329 8,887,167 264,468,441 130,899,355 68,938,918 Net assets at beginning of period 27,147,059 18,259,892 351,818,609 220,919,254 - ----------- ----------- ------------ ------------ ------------ Net assets at end of period $54,933,388 $27,147,059 $616,287,050 $351,818,609 $ 68,938,918 =========== =========== ============ ============ ============ Undistributed net investment income (loss) $ 611,834 $ 434,677 $ 17,512,180 $ 12,116,374 $ 83,536 =========== =========== ============ ============ ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 1,831,310 1,654,526 5,043,058 8,231,649 2,778,728 Reinvestment of distributions 41,546 119 581,656 487,639 - Shares redeemed (1,117,020) (722,561) (3,774,880) (3,329,430) (745,642) ----------- ----------- ------------ ------------ ------------ Net increase (decrease) 755,836 932,084 1,849,834 5,389,858 2,033,086 =========== =========== ============ ============ ============ Series II Shares sold 1,452,646 936,092 5,174,415 3,373,332 1,988,508 Reinvestment of distributions 18,363 - + 128,444 971 - Shares redeemed (209,766) (15,342) (362,663) (214,857) (80,744) ----------- ----------- ------------ ------------ ------------ Net increase (decrease) 1,261,243 920,750 4,940,196 3,159,446 1,907,764 =========== =========== ============ ============ ============ Series III Shares sold 12 - 1,544 - 31 Shares redeemed - - (513) - (1) ----------- ----------- ------------ ------------ ------------ Net increase (decrease) 12 - 1,031 - 30 =========== =========== ============ ============ ============
* Commencement of operations + Rounds to less than 1 share. The accompanying notes are an integral part of the financial statements. 48 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
SMALL COMPANY SPECIAL VALUE VALUE MID CAP VALUE TRUST TRUST TRUST ---------------------------- ----------- ---------------------------- YEAR YEAR 05/05/2003* YEAR YEAR ENDED ENDED TO ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2003 12/31/2002 ------------- ------------- ----------- ------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 894,470 $ 2,073,409 $ (40,816) $ 2,523,735 $ 1,676,284 Net realized gain (loss) on: Investment transactions 6,095,623 402,951 430,481 (3,014,911) (3,782,104) Futures contracts - (321,749) - - - Change in unrealized appreciation (depreciation) on: Investments 115,324,823 (36,418,398) 2,430,967 87,842,564 (22,066,022) ------------- ------------- ----------- ------------- ------------ Net increase (decrease) in net assets resulting from operations 122,314,916 (34,263,787) 2,820,632 87,351,388 (24,171,842) Distribution to shareholders from: Net investment income Series I (1,371,571) (895,479) - (1,188,342) - Series II (361,571) (1,618) - (442,985) - Net realized long term gains on investments, futures and foreign currency transactions Series I (387,016) (1,225,938) - - - Series II (87,261) (2,216) - - - ------------- ------------- ----------- ------------- ------------ Total distributions (2,207,419) (2,125,251) - (1,631,327) - Capital Shares Transactions +++: Series I Net proceeds from sales of shares 92,891,522 236,665,472 11,162,576 64,771,753 238,278,902 Reinvestment of distributions 1,758,587 2,121,417 - 1,188,342 - Cost of shares redeemed (106,378,865) (110,920,391) (2,251,734) (106,958,130) (26,474,658) ------------- ------------- ----------- ------------- ------------ Total Series I transactions (11,728,756) 127,866,498 8,910,842 (40,998,035) 211,804,244 Series II Net proceeds from sales of shares 80,687,442 59,076,702 6,282,618 88,270,247 72,381,671 Reinvestment of distributions 448,832 3,834 - 442,985 - Cost of shares redeemed (11,999,819) (7,422,698) (369,163) (19,227,183) (310,974) ------------- ------------- ----------- ------------- ------------ Total Series II transactions 69,136,455 51,657,838 5,913,455 69,486,049 72,070,697 Series III Net proceeds from sales of shares 458 - 233 2,219 - Cost of shares redeemed (12) - (6) (9) - ------------- ------------- ----------- ------------- ------------ Total Series III transactions 446 - 227 2,210 - Net increase (decrease) in net assets from capital share transactions 57,408,145 179,524,336 14,824,524 28,490,224 283,874,941 ------------- ------------- ----------- ------------- ------------ Increase (decrease) in net assets 177,515,642 143,135,298 17,645,156 114,210,285 259,703,099 Net assets at beginning of period 356,180,934 213,045,636 - 340,440,287 80,737,188 ------------- ------------- ----------- ------------- ------------ Net assets at end of period $ 533,696,576 $ 356,180,934 $17,645,156 $ 454,650,572 $340,440,287 ============= ============= =========== ============= ============ Undistributed net investment income (loss) $ 894,470 $ 2,030,665 - $ 2,523,735 $ 1,636,162 ============= ============= =========== ============= ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 6,308,680 16,413,802 843,871 5,328,407 19,011,712 Reinvestment of distributions 136,962 139,201 - 108,425 - Shares redeemed (7,588,407) (8,327,561) (155,207) (9,038,549) (2,250,066) ------------- ------------- ----------- ------------- ------------ Net increase (decrease) (1,142,765) 8,225,442 688,664 (3,601,717) 16,761,646 ============= ============= =========== ============= ============ Series II Shares sold 5,507,378 4,426,530 453,067 7,258,968 6,080,598 Reinvestment of distributions 35,010 252 - 40,455 - Shares redeemed (842,014) (483,545) (25,980) (1,644,979) (24,680) ------------- ------------- ----------- ------------- ------------ Net increase (decrease) 4,700,374 3,943,237 427,087 5,654,444 6,055,918 ============= ============= =========== ============= ============ Series III Shares sold 28 - 16 161 - Shares redeemed (1) - - + (1) - ------------- ------------- ----------- ------------- ------------ Net increase (decrease) 27 - 16 160 - ============= ============= =========== ============= ============
* Commencement of operations + Rounds to less than 1 share. The accompanying notes are an integral part of the financial statements. 49 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
VALUE ALL CAP VALUE TRUST TRUST --------------------------- -------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------ ------------- ------------ ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,751,830 $ 3,123,000 $ 910,435 $ 46,097 Net realized gain (loss) on: Investment transactions (19,847,634) (24,782,673) (927,654) (2,119,493) Futures contracts - - - - Change in unrealized appreciation (depreciation) on: Investments 101,874,284 (66,761,363) 52,170,119 (9,560,507) Futures contracts - - - - ------------ ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 83,778,480 (88,421,036) 52,152,900 (11,633,903) Distribution to shareholders from: Net investment income Series I (2,927,627) (2,727,882) (29,395) (843) Series II (195,373) (2,255) (16,728) (2) Net realized long term gains on investments, futures, and foreign currency transactions Series I - (4,304,078) - - Series II - (3,557) - - ------------ ------------- ------------ ------------ Total distributions (3,123,000) (7,037,772) (46,123) (845) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 25,816,402 72,117,043 133,074,931 34,760,402 Reinvestment of distributions 2,927,627 7,031,960 29,395 843 Cost of shares redeemed (69,054,536) (106,050,315) (17,904,267) (12,047,966) ------------ ------------- ------------ ------------ Total Series I transactions (40,310,507) (26,901,312) 115,200,059 22,713,279 Series II Net proceeds from sales of shares 15,797,744 17,919,362 79,977,073 7,697,273 Reinvestment of distributions 195,373 5,812 16,728 2 Cost of shares redeemed (5,145,914) (5,748,212) (1,569,644) (211,180) ------------ ------------- ------------ ------------ Total Series II transactions 10,847,203 12,176,962 78,424,157 7,486,095 Series III Net proceeds from sales of shares - - 7,175 - Cost of shares redeemed - - (3,045) - ------------ ------------- ------------ ------------ Total Series III transactions - - 4,130 - Net increase (decrease) in net assets from capital share transactions (29,463,304) (14,724,350) 193,628,346 30,199,374 ------------ ------------- ------------ ------------ Increase (decrease) in net assets 51,192,176 (110,183,158) 245,735,123 18,564,626 Net assets at beginning of period 249,843,908 360,027,066 39,441,148 20,876,522 ------------ ------------- ------------ ------------ Net assets at end of period $301,036,084 $ 249,843,908 $285,176,271 $ 39,441,148 ============ ============= ============ ============ Undistributed net investment income (loss) $ 1,751,830 $ 3,123,000 $ 910,435 $ 46,123 ============ ============= ============ ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 1,795,594 4,796,755 12,734,562 3,141,243 Reinvestment of distributions 245,195 418,320 3,094 70 Shares redeemed (5,196,447) (7,977,468) (1,675,837) (1,252,298) ------------ ------------- ------------ ------------ Net increase (decrease) (3,155,658) (2,762,393) 11,061,819 1,889,015 ============ ============= ============ ============ Series II Shares sold 1,113,981 1,365,931 7,442,905 816,442 Reinvestment of distributions 16,377 346 1,762 - + Shares redeemed (363,164) (446,949) (149,253) (24,307) ------------ ------------- ------------ ------------ Net increase (decrease) 767,194 919,328 7,295,414 792,135 ============ ============= ============ ============ Series III Shares sold - - 614 - Shares redeemed - - (261) - ------------ ------------- ------------ ------------ Net increase (decrease) - - 353 - ============ ============= ============ ============ EQUITY INDEX TRUST -------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 ------------ ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,026,275 $ 1,086,152 Net realized gain (loss) on: Investment transactions (354,253) (3,590,476) Futures contracts 113,665 (583,402) Change in unrealized appreciation (depreciation) on: Investments 17,714,342 (20,298,513) Futures contracts 101,076 (38,098) ------------ ------------ Net increase (decrease) in net assets resulting from operations 18,601,105 (23,424,337) Distribution to shareholders from: Net investment income Series I (1,083,167) (1,019,444) Series II - - Net realized long term gains on investments, futures, and foreign currency transactions Series I - - Series II - - ------------ ------------ Total distributions (1,083,167) (1,019,444) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 14,323,771 19,031,991 Reinvestment of distributions 1,083,167 1,019,444 Cost of shares redeemed (24,471,046) (25,532,822) ------------ ------------ Total Series I transactions (9,064,108) (5,481,387) Series II Net proceeds from sales of shares - - Reinvestment of distributions - - Cost of shares redeemed - - ------------ ------------ Total Series II transactions - - Series III Net proceeds from sales of shares - - Cost of shares redeemed - - ------------ ------------ Total Series III transactions - - Net increase (decrease) in net assets from capital share transactions (9,064,108) (5,481,387) ------------ ------------ Increase (decrease) in net assets 8,453,830 (29,925,168) Net assets at beginning of period 73,082,296 103,007,464 ------------ ------------ Net assets at end of period $ 81,536,126 $ 73,082,296 ============ ============ Undistributed net investment income (loss) $ 1,026,275 $ 1,083,805 ============ ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 1,221,486 1,566,660 Reinvestment of distributions 101,897 75,291 Shares redeemed (2,116,634) (2,210,740) ------------ ------------ Net increase (decrease) (793,251) (568,789) ============ ============ Series II Shares sold - - Reinvestment of distributions - - Shares redeemed - - ------------ ------------ Net increase (decrease) - - ============ ============ Series III Shares sold - - Shares redeemed - - ------------ ------------ Net increase (decrease) - - ============ ============
+ Rounds to less than 1 share. The accompanying notes are an integral part of the financial statements. 50 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
FUNDAMENTAL VALUE GROWTH & INCOME TRUST TRUST ---------------------------- ------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------- ------------ -------------- -------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 3,046,187 $ 1,280,206 $ 13,682,519 $ 15,127,333 Net realized gain (loss) on: Investment transactions (1,282,681) (5,226,518) (34,180,718) (90,048,302) Foreign currency and forward foreign currency contracts (62,076) (435) - - Change in unrealized appreciation (depreciation) on: Investments 115,859,410 (28,159,328) 379,920,334 (490,938,527) Foreign currency and forward foreign currency contracts 221 - - - ------------- ------------ -------------- -------------- Net increase (decrease) in net assets resulting from operations 117,561,061 (32,106,075) 359,422,135 (565,859,496) Distribution to shareholders from: Net investment income Series I (849,707) (152,224) (14,469,838) (12,303,552) Series II (311,072) (556) (657,495) (3,670) Net realized short term gains on investments, futures, and foreign currency transactions Series II - - - - Net realized long term gains on investments, futures, and foreign currency transactions Series I - - - (74,913,696) Series II - - - (22,349) ------------- ------------ -------------- -------------- Total distributions (1,160,779) (152,780) (15,127,333) (87,243,267) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 60,914,675 205,192,599 39,569,860 65,616,571 Reinvestment of distributions 849,707 152,224 14,469,838 87,217,248 Cost of shares redeemed (54,977,041) (16,778,417) (262,399,225) (452,578,077) ------------- ------------ -------------- -------------- Total Series I transactions 6,787,341 188,566,406 (208,359,527) (299,744,258) Series II Net proceeds from sales of shares 106,987,978 66,549,754 64,316,764 50,841,320 Reinvestment of distributions 311,072 556 657,495 26,019 Cost of shares redeemed (6,477,750) (24,366) (8,805,570) (9,937,921) ------------- ------------ -------------- -------------- Total Series II transactions 100,821,300 66,525,944 56,168,689 40,929,418 Series III Net proceeds from sales of shares 9,364 - 1,581 - Cost of shares redeemed (1,323) - (264) - ------------- ------------ -------------- -------------- Total Series III transactions 8,041 - 1,317 - Net increase (decrease) in net assets from capital share transactions 107,616,682 255,092,350 (152,189,521) (258,814,840) ------------- ------------ -------------- -------------- Increase (decrease) in net assets 224,016,964 222,833,495 192,105,281 (911,917,603) Net assets at beginning of period 334,423,431 111,589,936 1,475,800,629 2,387,718,232 ------------- ------------ -------------- -------------- Net assets at end of period $ 558,440,395 $334,423,431 $1,667,905,910 $1,475,800,629 ============= ============ ============== ============== Undistributed net investment income (loss) $ 3,092,009 $ 1,277,150 $ 13,682,519 $ 15,127,333 ============= ============ ============== ============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 5,766,248 19,560,519 2,067,632 3,082,011 Reinvestment of distributions 87,689 13,089 843,230 3,955,431 Shares redeemed (5,312,351) (1,685,008) (14,166,067) (24,351,134) ------------- ------------ -------------- -------------- Net increase (decrease) 541,586 17,888,600 (11,255,205) (17,313,692) ============= ============ ============== ============== Series II Shares sold 9,981,256 6,642,349 3,440,910 2,809,153 Reinvestment of distributions 32,136 48 38,383 1,181 Shares redeemed (624,668) (2,351) (465,524) (539,477) ------------- ------------ -------------- -------------- Net increase (decrease) 9,388,724 6,640,046 3,013,769 2,270,857 ============= ============ ============== ============== Series III Shares sold 802 - 77 - Shares redeemed (112) - (13) - ------------- ------------ -------------- -------------- Net increase (decrease) 690 - 64 - ============= ============ ============== ============== GREAT COMPANIES - AMERICA TRUST ----------------- 08/04/2003* TO 12/31/2003 ----------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($182) Net realized gain (loss) on: Investment transactions 2,538 Foreign currency and forward foreign currency contracts - Change in unrealized appreciation (depreciation) on: Investments 268,774 Foreign currency and forward foreign currency contracts - ------------ Net increase (decrease) in net assets resulting from operations 271,130 Distribution to shareholders from: Net investment income Series I - Series II - Net realized short term gains on investments, futures, and foreign currency transactions Series II (1,801) Net realized long term gains on investments, futures, and foreign currency transactions Series I - Series II - ------------ Total distributions (1,801) Capital Shares Transactions +++: Series I Net proceeds from sales of shares - Reinvestment of distributions - Cost of shares redeemed - ------------ Total Series I transactions - Series II Net proceeds from sales of shares 2,525,628 Reinvestment of distributions 1,801 Cost of shares redeemed (1,055) ------------ Total Series II transactions 2,526,374 Series III Net proceeds from sales of shares - Cost of shares redeemed - ------------ Total Series III transactions - Net increase (decrease) in net assets from capital share transactions 2,526,374 ------------ Increase (decrease) in net assets 2,795,703 Net assets at beginning of period - ------------ Net assets at end of period $ 2,795,703 ============ Undistributed net investment income (loss) - ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold - Reinvestment of distributions - Shares redeemed - ------------ Net increase (decrease) - ============ Series II Shares sold 199,592 Reinvestment of distributions 129 Shares redeemed (78) ------------ Net increase (decrease) 199,643 ============ Series III Shares sold - Shares redeemed - ------------ Net increase (decrease) - ============
* Commencement of operations The accompanying notes are an integral part of the financial statements. 51 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
EQUITY-INCOME INCOME & VALUE TRUST TRUST ------------------------------- ---------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 -------------- -------------- ------------ ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 21,708,104 $ 18,121,061 $ 7,532,511 $ 9,672,919 Net realized gain (loss) on: Investment transactions 19,636,616 24,982,229 (27,342,026) (28,747,940) Foreign currency and forward foreign currency contracts (24,446) - 567 (33) Change in unrealized appreciation (depreciation) on: Investments 268,362,773 (215,269,448) 145,168,697 (73,859,605) Foreign currency and forward foreign currency contracts - - (224) 554 -------------- -------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations 309,683,047 (172,166,158) 125,359,525 (92,934,105) Distribution to shareholders from: Net investment income Series I (15,766,776) (15,159,114) (9,409,101) (10,537,683) Series II (2,094,524) (6,702) (783,920) (7,619) Net realized short term gains on investments, futures, and foreign currency transactions Series I (1,618,823) (2,853,930) - - Series II (202,136) (1,262) - - Net realized long term gains on investments, futures, and foreign currency transactions Series I (20,680,441) (29,738,500) - - Series II (2,582,285) (13,148) - - -------------- -------------- ------------ ------------- Total distributions (42,944,985) (47,772,656) (10,193,021) (10,545,302) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 145,018,059 215,279,170 37,066,702 83,863,512 Reinvestment of distributions 38,066,040 47,751,544 9,409,101 10,537,683 Cost of shares redeemed (141,449,920) (176,750,557) (76,578,349) (104,039,588) -------------- -------------- ------------ ------------- Total Series I transactions 41,634,179 86,280,157 (30,102,546) (9,638,393) Series II Net proceeds from sales of shares 177,064,319 89,274,342 48,292,303 23,453,565 Reinvestment of distributions 4,878,945 21,112 783,920 7,619 Cost of shares redeemed (1,434,889) (220,948) (2,777,870) (603,841) -------------- -------------- ------------ ------------- Total Series II transactions 180,508,375 89,074,506 46,298,353 22,857,343 Series III Net proceeds from sales of shares 9,060 - - - Cost of shares redeemed (1,693) - - - -------------- -------------- ------------ ------------- Total Series III transactions 7,367 - - - Net increase (decrease) in net assets from capital share transactions 222,149,921 175,354,663 16,195,807 13,218,950 -------------- -------------- ------------ ------------- Increase (decrease) in net assets 488,887,983 (44,584,151) 131,362,311 (90,260,457) Net assets at beginning of period 1,102,490,739 1,147,074,890 471,362,862 561,623,319 -------------- -------------- ------------ ------------- Net assets at end of period $1,591,378,722 $1,102,490,739 $602,725,173 $ 471,362,862 ============== ============== ============ ============= Undistributed net investment income (loss) $ 21,683,658 $ 17,974,623 $ 8,212,711 $ 10,135,876 ============== ============== ============ ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 11,124,624 14,903,160 4,087,334 9,247,394 Reinvestment of distributions 3,236,908 3,179,197 1,126,838 1,066,567 Shares redeemed (10,874,783) (13,444,146) (8,432,514) (12,109,259) -------------- -------------- ------------ ------------- Net increase (decrease) 3,486,749 4,638,211 (3,218,342) (1,795,298) ============== ============== ============ ============= Series II Shares sold 13,484,561 6,931,282 5,313,015 2,804,704 Reinvestment of distributions 415,584 1,407 94,108 772 Shares redeemed (101,767) (14,697) (306,126) (71,904) -------------- -------------- ------------ ------------- Net increase (decrease) 13,798,378 6,917,992 5,100,997 2,733,572 ============== ============== ============ ============= Series III Shares sold 648 - - - Shares redeemed (119) - - - -------------- -------------- ------------ ------------- Net increase (decrease) 529 - - - ============== ============== ============ ============= BALANCED TRUST ---------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 ------------ ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 2,737,454 $ 3,282,527 Net realized gain (loss) on: Investment transactions (6,147,456) (17,179,801) Foreign currency and forward foreign currency contracts 804 - Change in unrealized appreciation (depreciation) on: Investments 23,054,596 (11,390,818) Foreign currency and forward foreign currency contracts (337) 775 ------------ ------------- Net increase (decrease) in net assets resulting from operations 19,645,061 (25,287,317) Distribution to shareholders from: Net investment income Series I (3,337,836) (3,955,306) Series II (256,181) (11,519) Net realized short term gains on investments, futures, and foreign currency transactions Series I - - Series II - - Net realized long term gains on investments, futures, and foreign currency transactions Series I - - Series II - - ------------ ------------- Total distributions (3,594,017) (3,966,825) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 10,250,722 15,018,828 Reinvestment of distributions 3,337,836 3,955,306 Cost of shares redeemed (27,000,899) (27,939,115) ------------ ------------- Total Series I transactions (13,412,341) (8,964,981) Series II Net proceeds from sales of shares 12,890,596 7,279,299 Reinvestment of distributions 256,181 11,519 Cost of shares redeemed (2,864,204) (879,984) ------------ ------------- Total Series II transactions 10,282,573 6,410,834 Series III Net proceeds from sales of shares - - Cost of shares redeemed - - ------------ ------------- Total Series III transactions - - Net increase (decrease) in net assets from capital share transactions (3,129,768) (2,554,147) ------------ ------------- Increase (decrease) in net assets 12,921,276 (31,808,289) Net assets at beginning of period 142,931,203 174,739,492 ------------ ------------- Net assets at end of period $155,852,479 $ 142,931,203 ============ ============= Undistributed net investment income (loss) $ 2,950,669 $ 3,581,503 ============ ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 868,046 1,203,973 Reinvestment of distributions 304,269 305,193 Shares redeemed (2,312,260) (2,349,574) ------------ ------------- Net increase (decrease) (1,139,945) (840,408) ============ ============= Series II Shares sold 1,106,427 632,956 Reinvestment of distributions 23,396 889 Shares redeemed (246,454) (78,573) ------------ ------------- Net increase (decrease) 883,369 555,272 ============ ============= Series III Shares sold - - Shares redeemed - - ------------ ------------- Net increase (decrease) - - ============ =============
The accompanying notes are an integral part of the financial statements. 52 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL ALLOCATION TRUST (FORMERLY, TACTICAL ALLOCATION HIGH YIELD TRUST) TRUST ------------------------------ ---------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ----------- ------------ ------------ ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 463,258 $ 317,752 $ 48,433,004 $ 30,211,984 Net realized gain (loss) on: Investment transactions (14,658,888) (6,972,106) (17,561,268) (69,783,841) Futures contracts - - (2,013,218) (1,862,811) Foreign currency and forward foreign currency contracts 192,691 - 815,221 (1,713,384) Change in unrealized appreciation (depreciation) on: Investments 30,077,301 (13,323,547) 99,672,955 25,021,928 Futures contracts - - 1,928,746 (1,927,722) Foreign currency and forward foreign currency contracts (17,366) - 935,429 (993,705) ----------- ------------ ------------ ------------- Net increase (decrease) in net assets resulting from operations 16,056,996 $(19,977,901) 132,210,869 $ (21,047,551) Distribution to shareholders from: Net investment income Series I (270,017) (1,617) (22,291,639) (29,046,140) Series II (42,584) - (5,381,143) (192,839) ----------- ------------ ------------ ------------- Total distributions (312,601) (1,617) (27,672,782) (29,238,979) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 8,194,687 18,774,809 295,400,812 236,079,304 Reinvestment of distributions 270,017 1,617 22,291,639 29,046,140 Cost of shares redeemed (14,681,290) (15,245,615) (110,605,379) (200,565,193) ----------- ------------ ------------ ------------- Total Series I transactions (6,216,586) 3,530,811 207,087,072 64,560,251 Series II Net proceeds from sales of shares 13,176,205 5,623,231 242,018,086 61,593,240 Reinvestment of distributions 42,584 - 5,381,143 192,839 Cost of shares redeemed (2,555,668) (117,085) (28,648,456) (12,602,459) ----------- ------------ ------------ ------------- Total Series II transactions 10,663,121 5,506,146 218,750,773 49,183,620 Series III Net proceeds from sales of shares - - 17,500 - Cost of shares redeemed - - (1,977) - ----------- ------------ ------------ ------------- Total Series III transactions - - 15,523 - Net increase (decrease) in net assets from capital share transactions 4,446,535 9,036,957 425,853,368 113,743,871 ----------- ------------ ------------ ------------- Increase (decrease) in net assets 20,190,930 (10,942,561) 530,391,455 63,457,341 Net assets at beginning of period 62,771,802 73,714,363 386,766,520 323,309,179 ----------- ------------ ------------ ------------- Net assets at end of period $82,962,732 $ 62,771,802 $917,157,975 $ 386,766,520 =========== ============ ============ ============= Undistributed net investment income (loss) $ 965,193 $ 313,559 $ 51,597,667 $ 28,640,889 =========== ============ ============ ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 942,817 1,997,917 32,478,361 27,060,333 Reinvestment of distributions 35,159 165 2,583,040 3,230,939 Shares redeemed (1,808,141) (1,897,581) (12,217,459) (23,383,667) ----------- ------------ ------------ ------------- Net increase (decrease) (830,165) 100,501 22,843,942 6,907,605 =========== ============ ============ ============= Series II Shares sold 1,538,601 711,353 26,500,352 7,368,174 Reinvestment of distributions 5,552 - 624,263 21,450 Shares redeemed (295,327) (15,079) (3,180,167) (1,482,996) ----------- ------------ ------------ ------------- Net increase (decrease) 1,248,826 696,274 23,944,448 5,906,628 =========== ============ ============ ============= Series III Shares sold - - 1,860 - Shares redeemed - - (206) - ----------- ------------ ------------ ------------- Net increase (decrease) - - 1,654 - =========== ============ ============ ============= STRATEGIC BOND TRUST ----------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 ------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 25,644,161 $ 22,655,657 Net realized gain (loss) on: Investment transactions 17,585,205 (6,123,032) Futures contracts (1,208,707) 2,850 Foreign currency and forward foreign currency contracts 347,304 (9,956) Change in unrealized appreciation (depreciation) on: Investments 23,582,492 13,377,766 Futures contracts (575,940) - Foreign currency and forward foreign currency contracts (1,799,008) 10,029 ------------- ------------- Net increase (decrease) in net assets resulting from operations 63,575,507 $ 29,913,314 Distribution to shareholders from: Net investment income Series I (20,684,537) (22,228,870) Series II (3,333,745) (19,384) ------------- ------------- Total distributions (24,018,282) (22,248,254) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 100,115,332 187,398,064 Reinvestment of distributions 20,684,537 22,228,870 Cost of shares redeemed (103,941,121) (111,608,073) ------------- ------------- Total Series I transactions 16,858,748 98,018,861 Series II Net proceeds from sales of shares 107,256,056 42,121,144 Reinvestment of distributions 3,333,745 19,384 Cost of shares redeemed (9,105,505) (813,833) ------------- ------------- Total Series II transactions 101,484,296 41,326,695 Series III Net proceeds from sales of shares 15,017 - Cost of shares redeemed (2,687) - ------------- ------------- Total Series III transactions 12,330 - Net increase (decrease) in net assets from capital share transactions 118,355,374 139,345,556 ------------- ------------- Increase (decrease) in net assets 157,912,599 147,010,616 Net assets at beginning of period 449,509,826 302,499,210 ------------- ------------- Net assets at end of period $ 607,422,425 $ 449,509,826 ============= ============= Undistributed net investment income (loss) $ 27,056,882 $ 22,364,633 ============= ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 8,904,646 17,615,106 Reinvestment of distributions 1,906,409 2,160,240 Shares redeemed (9,279,701) (10,578,556) ------------- ------------- Net increase (decrease) 1,531,354 9,196,790 ============= ============= Series II Shares sold 9,535,817 3,986,957 Reinvestment of distributions 307,825 1,884 Shares redeemed (815,101) (78,569) ------------- ------------- Net increase (decrease) 9,028,541 3,910,272 ============= ============= Series III Shares sold 1,322 - Shares redeemed (233) - ------------- ------------- Net increase (decrease) 1,089 - ============= =============
The accompanying notes are an integral part of the financial statements. 53 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
DIVERSIFIED GLOBAL BOND BOND TRUST TRUST --------------------------- --------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------ ------------ ------------ ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 6,587,681 $ 4,384,913 $ 13,411,235 $ 16,594,867 Net realized gain (loss) on: Investment transactions 7,024,867 4,476,533 7,325,966 (5,153,643) Futures contracts 990,848 3,176,734 - - Written options contracts (3,466,444) (176,998) - - Interest rate swaps (2,559,131) (2,587,860) - - Foreign currency and forward foreign currency contracts 16,559,135 901,924 85 - Change in unrealized appreciation (depreciation) on: Investments 6,357,033 16,372,512 (4,274,207) 13,785,189 Futures contracts 357,486 306,084 - - Written options contracts (31,451) 172,044 - - Interest rate swaps 1,670,959 (3,518,448) - - Foreign currency and forward foreign currency contracts (183,127) 1,506,361 (34) 83 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 33,307,856 25,013,799 16,463,045 25,226,496 Distribution to shareholders from: Net investment income Series I (7,171,043) - (15,843,789) (13,613,998) Series II (1,514,959) - (1,946,918) (16,434) ------------ ------------ ------------ ------------ Total distributions (8,686,002) - (17,790,707) (13,630,432) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 52,137,298 99,372,896 29,454,695 83,824,852 Reinvestment of distributions 7,171,043 - 15,843,789 13,613,998 Cost of shares redeemed (65,592,668) (38,129,695) (77,835,031) (64,989,038) ------------ ------------ ------------ ------------ Total Series I transactions (6,284,327) 61,243,201 (32,536,547) 32,449,812 Series II Net proceeds from sales of shares 60,147,599 26,093,419 45,176,651 27,068,945 Reinvestment of distributions 1,514,959 - 1,946,918 16,434 Cost of shares redeemed (23,982,285) (5,532,090) (14,362,278) (2,820,398) ------------ ------------ ------------ ------------ Total Series II transactions 37,680,273 20,561,329 32,761,291 24,264,981 Series III Net proceeds from sales of shares 7,867 - 5,154 - Cost of shares redeemed (3,414) - (191) - ------------ ------------ ------------ ------------ Total Series III transactions 4,453 - 4,963 - Net increase (decrease) in net assets from capital share transactions 31,400,399 81,804,530 229,707 56,714,793 ------------ ------------ ------------ ------------ Increase (decrease) in net assets 56,022,253 106,818,329 (1,097,955) 68,310,857 Net assets at beginning of period 203,547,986 96,729,657 355,053,077 286,742,220 ------------ ------------ ------------ ------------ Net assets at end of period $259,570,239 $203,547,986 $353,955,122 $355,053,077 ============ ============ ============ ============ Undistributed net investment income (loss) $ 21,527,925 $ 6,107,118 $ 15,410,098 $ 17,646,823 ============ ============ ============ ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 3,646,318 7,798,089 2,727,030 8,014,709 Reinvestment of distributions 528,838 - 1,501,781 1,339,960 Shares redeemed (4,632,311) (3,038,995) (7,263,604) (6,147,320) ------------ ------------ ------------ ------------ Net increase (decrease) (457,155) 4,759,094 (3,034,793) 3,207,349 ============ ============ ============ ============ Series II Shares sold 4,220,985 2,007,058 4,185,268 2,583,629 Reinvestment of distributions 111,888 - 184,717 1,619 Shares redeemed (1,705,998) (423,001) (1,346,333) (264,608) ------------ ------------ ------------ ------------ Net increase (decrease) 2,626,875 1,584,057 3,023,652 2,320,640 ============ ============ ============ ============ Series III Shares sold 562 - 486 - Shares redeemed (245) - (18) - ------------ ------------ ------------ ------------ Net increase (decrease) 317 - 468 - ============ ============ ============ ============ INVESTMENT QUALITY BOND TRUST ---------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 ------------- ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 25,378,390 $ 25,757,134 Net realized gain (loss) on: Investment transactions 3,782,936 (6,643,270) Futures contracts 74,259 - Written options contracts - - Interest rate swaps - - Foreign currency and forward foreign currency contracts - - Change in unrealized appreciation (depreciation) on: Investments 7,203,944 24,149,563 Futures contracts (192,504) - Written options contracts - - Interest rate swaps - - Foreign currency and forward foreign currency contracts - - ------------- ------------ Net increase (decrease) in net assets resulting from operations 36,247,025 43,263,427 Distribution to shareholders from: Net investment income Series I (23,937,154) (22,893,403) Series II (3,105,944) (35,345) ------------- ------------ Total distributions (27,043,098) (22,928,748) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 40,001,427 108,503,400 Reinvestment of distributions 23,937,154 22,893,403 Cost of shares redeemed (141,925,502) (88,657,139) ------------- ------------ Total Series I transactions (77,986,921) 42,739,664 Series II Net proceeds from sales of shares 55,306,890 38,880,786 Reinvestment of distributions 3,105,944 35,345 Cost of shares redeemed (12,866,654) (2,286,984) ------------- ------------ Total Series II transactions 45,546,180 36,629,147 Series III Net proceeds from sales of shares 26,661 - Cost of shares redeemed (5,210) - ------------- ------------ Total Series III transactions 21,451 - Net increase (decrease) in net assets from capital share transactions (32,419,290) 79,368,811 ------------- ------------ Increase (decrease) in net assets (23,215,363) 99,703,490 Net assets at beginning of period 507,355,065 407,651,575 ------------- ------------ Net assets at end of period $ 484,139,702 $507,355,065 ============= ============ Undistributed net investment income (loss) $ 28,366,967 $ 26,445,561 ============= ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 3,224,145 9,182,468 Reinvestment of distributions 1,999,762 2,011,723 Shares redeemed (11,549,592) (7,531,879) ------------- ------------ Net increase (decrease) (6,325,685) 3,662,312 ============= ============ Series II Shares sold 4,472,535 3,276,307 Reinvestment of distributions 259,694 3,106 Shares redeemed (1,050,141) (193,119) ------------- ------------ Net increase (decrease) 3,682,088 3,086,294 ============= ============ Series III Shares sold 2,175 - Shares redeemed (426) - ------------- ------------ Net increase (decrease) 1,749 - ============= ============
The accompanying notes are an integral part of the financial statements. 54 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
TOTAL REAL RETURN RETURN BOND TRUST TRUST ------------------------------- ------------ YEAR YEAR 05/05/2003* ENDED ENDED TO 12/31/2003 12/31/2002 12/31/2003 -------------- -------------- ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 34,754,714 $ 35,484,703 $ 1,143,661 Net realized gain (loss) on: Investment transactions 11,670,168 21,378,164 5,137,877 Futures contracts 7,584,806 26,733,511 10 Written options contracts 5,297,083 4,476,426 (16,406) Interest rate swaps (4,925,543) (765,092) (27,915) Foreign currency and forward foreign currency contracts 1,403,557 2,674,218 (25,840) Change in unrealized appreciation (depreciation) on: Investments 8,086,649 7,405,218 3,458,488 Futures contracts (2,247,572) 9,181,991 (1,100) Written options contracts 1,893,091 (3,317,741) 112,919 Interest rate swaps 2,405,668 (2,358,930) 28,971 Foreign currency and forward foreign currency contracts 2,576,055 (3,585,555) (44,151) -------------- -------------- ------------ Net increase (decrease) in net assets resulting from operations 68,498,676 97,306,913 9,766,514 Distribution to shareholders from: Net investment income Series I (30,281,914) (26,077,165) - Series II (8,910,318) (68,518) - Net realized short term gains on investments, futures, and foreign currency transactions Series I (27,972,904) (15,984,739) - Series II (8,034,413) (42,000) - Net realized long term gains on investments, futures, and foreign currency transactions Series I (11,213,151) (2,526,236) - Series II (3,220,655) (6,638) - -------------- -------------- ------------ Total distributions (89,633,355) (44,705,296) - Capital Shares Transactions +++: Series I Net proceeds from sales of shares 175,860,397 480,464,147 152,354,902 Reinvestment of distributions 69,467,969 44,588,140 - Cost of shares redeemed (264,856,612) (234,417,205) (20,648,559) -------------- -------------- ------------ Total Series I transactions (19,528,246) 290,635,082 131,706,343 Series II Net proceeds from sales of shares 305,370,730 211,527,563 141,395,281 Reinvestment of distributions 20,165,386 117,156 - Cost of shares redeemed (48,545,666) (370,845) (3,182,422) -------------- -------------- ------------ Total Series II transactions 276,990,450 211,273,874 138,212,859 Series III Net proceeds from sales of shares 333,850 - 8,917 Cost of shares redeemed (2,420) - (1,040) -------------- -------------- ------------ Total Series III transactions 331,430 - 7,877 Net increase (decrease) in net assets from capital share transactions 257,793,634 501,908,956 269,927,079 -------------- -------------- ------------ Increase (decrease) in net assets 236,658,955 554,510,573 279,693,593 Net assets at beginning of period 1,290,982,466 736,471,893 - -------------- -------------- ------------ Net assets at end of period $1,527,641,421 $1,290,982,466 $279,693,593 ============== ============== ============ Undistributed net investment income (loss) $ 45,816,010 $ 39,240,174 $ 1,589,621 ============== ============== ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 12,334,728 34,725,600 12,092,376 Reinvestment of distributions 5,037,561 3,334,939 - Shares redeemed (18,793,530) (16,810,563) (1,613,029) -------------- -------------- ------------ Net increase (decrease) (1,421,241) 21,249,976 10,479,347 ============== ============== ============ Series II Shares sold 21,534,658 15,156,455 11,109,289 Reinvestment of distributions 1,464,443 8,769 - Shares redeemed (3,477,161) (26,455) (247,572) -------------- -------------- ------------ Net increase (decrease) 19,521,940 15,138,769 10,861,717 ============== ============== ============ Series III Shares sold 23,888 - 699 Shares redeemed (173) - (80) -------------- -------------- ------------ Net increase (decrease) 23,715 - 619 ============== ============== ============ U.S. GOVERNMENT SECURITIES TRUST ------------- --------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 ------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 12,101,434 $ 27,141,469 Net realized gain (loss) on: Investment transactions 18,335,985 2,619,600 Futures contracts (69,845) 963,950 Written options contracts - - Interest rate swaps - - Foreign currency and forward foreign currency contracts - - Change in unrealized appreciation (depreciation) on: Investments (16,915,926) 22,436,598 Futures contracts (369,128) 237,500 Written options contracts - - Interest rate swaps - - Foreign currency and forward foreign currency contracts - - ------------- ------------- Net increase (decrease) in net assets resulting from operations 13,082,520 53,399,117 Distribution to shareholders from: Net investment income Series I (22,990,479) (23,862,923) Series II (6,149,929) (37,399) Net realized short term gains on investments, futures, and foreign currency transactions Series I - - Series II - - Net realized long term gains on investments, futures, and foreign currency transactions Series I - - Series II - - ------------- ------------- Total distributions (29,140,408) (23,900,322) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 69,291,494 282,136,935 Reinvestment of distributions 22,990,479 23,862,923 Cost of shares redeemed (262,557,350) (183,654,500) ------------- ------------- Total Series I transactions (170,275,377) 122,345,358 Series II Net proceeds from sales of shares 156,970,256 142,632,614 Reinvestment of distributions 6,149,929 37,399 Cost of shares redeemed (80,070,830) (16,997,690) ------------- ------------- Total Series II transactions 83,049,355 125,672,323 Series III Net proceeds from sales of shares 108,744 - Cost of shares redeemed (4,096) - ------------- ------------- Total Series III transactions 104,648 - Net increase (decrease) in net assets from capital share transactions (87,121,374) 248,017,681 ------------- ------------- Increase (decrease) in net assets (103,179,262) 277,516,476 Net assets at beginning of period 835,908,972 558,392,496 ------------- ------------- Net assets at end of period $ 732,729,710 $ 835,908,972 ============= ============= Undistributed net investment income (loss) $ 13,405,020 $ 28,548,159 ============= ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 4,910,811 20,470,538 Reinvestment of distributions 1,658,765 1,794,205 Shares redeemed (18,873,893) (13,176,348) ------------- ------------- Net increase (decrease) (12,304,317) 9,088,395 ============= ============= Series II Shares sold 11,163,318 10,235,080 Reinvestment of distributions 444,038 2,814 Shares redeemed (5,763,038) (1,213,565) ------------- ------------- Net increase (decrease) 5,844,318 9,024,329 ============= ============= Series III Shares sold 7,861 - Shares redeemed (295) - ------------- ------------- Net increase (decrease) 7,566 - ============= =============
* Commencement of operations The accompanying notes are an integral part of the financial statements. 55 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
MONEY SMALL CAP MARKET INDEX TRUST TRUST -------------------------------- --------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------- ---------------- ------------ ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 8,358,942 $ 18,431,766 $ 608,272 $ 631,382 Net realized gain (loss) on: Investment transactions - - 570,622 (2,746,240) Futures contracts - - 6,690,256 (3,429,672) Foreign currency and forward foreign currency contracts - - - - Change in unrealized appreciation (depreciation) on: Investments - - 32,910,619 (10,382,393) Futures contracts - - 842,081 (289,510) Foreign currency and forward foreign currency contracts - - - - -------------- --------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 8,358,942 18,431,766 41,621,850 (16,216,433) Distribution to shareholders from: Net investment income Series I (7,537,419) (17,770,003) - (515,816) Series II (820,828) (661,763) - (87,905) Series III (695) - - - -------------- --------------- ------------ ------------ Total distributions (8,358,942) (18,431,766) - (603,721) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 1,571,938,507 2,430,559,232 55,864,707 46,621,907 Reinvestment of distributions 7,537,419 17,770,003 - 515,816 Cost of shares redeemed (1,958,238,062) (2,517,148,825) (11,550,432) (21,891,507) -------------- --------------- ------------ ------------ Total Series I transactions (378,762,136) (68,819,590) 44,314,275 25,246,216 Series II Net proceeds from sales of shares 428,670,980 540,453,529 27,099,665 10,242,709 Reinvestment of distributions 820,828 661,763 - 87,905 Cost of shares redeemed (447,676,943) (339,501,956) (6,841,022) (161,720) -------------- --------------- ------------ ------------ Total Series II transactions (18,185,135) 201,613,336 20,258,643 10,168,894 Series III Net proceeds from sales of shares 2,163,249 - 11,197 - Reinvestment of distributions 695 - - - Cost of shares redeemed (12,015) - (5,585) - -------------- --------------- ------------ ------------ Total Series III transactions 2,151,929 - 5,612 - Net increase (decrease) in net assets from capital share transactions (394,795,342) 132,793,746 64,578,530 35,415,110 -------------- --------------- ------------ ------------ Increase (decrease) in net assets (394,795,342) 132,793,746 106,200,380 18,594,956 Net assets at beginning of period 1,617,487,301 1,484,693,555 68,874,776 50,279,820 -------------- --------------- ------------ ------------ Net assets at end of period $1,222,691,959 $ 1,617,487,301 $175,075,156 $ 68,874,776 ============== =============== ============ ============ Undistributed net investment income (loss) - - $ 608,272 $ 66,653 ============== =============== ============ ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 157,193,851 243,055,924 5,094,681 4,370,521 Reinvestment of distributions 753,742 1,777,000 - 58,884 Shares redeemed (195,823,806) (251,714,882) (1,146,586) (2,152,576) -------------- --------------- ------------ ------------ Net increase (decrease) (37,876,213) (6,881,958) 3,948,095 2,276,829 ============== =============== ============ ============ Series II Shares sold 42,867,098 54,045,353 2,499,259 1,113,434 Reinvestment of distributions 82,083 66,176 - 10,035 Shares redeemed (44,767,694) (33,950,196) (601,089) (16,713) -------------- --------------- ------------ ------------ Net increase (decrease) (1,818,513) 20,161,333 1,898,170 1,106,756 ============== =============== ============ ============ Series III Shares sold 216,324 - 943 - Reinvestment of distributions 69 - - - Shares redeemed (1,201) - (478) - -------------- --------------- ------------ ------------ Net increase (decrease) 215,192 - 465 - ============== =============== ============ ============ INTERNATIONAL INDEX TRUST ---------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 ------------- ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,242,670 $ 826,163 Net realized gain (loss) on: Investment transactions (133,078) (1,983,107) Futures contracts 1,405,755 (239,982) Foreign currency and forward foreign currency contracts (276,496) (113,669) Change in unrealized appreciation (depreciation) on: Investments 21,167,085 (8,120,544) Futures contracts 193,204 (16,157) Foreign currency and forward foreign currency contracts (9,093) 14,426 ------------- ------------ Net increase (decrease) in net assets resulting from operations 23,590,047 (9,632,870) Distribution to shareholders from: Net investment income Series I (1,061,444) (705,675) Series II (206,244) (75,519) Series III (45) - ------------- ------------ Total distributions (1,267,733) (781,194) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 141,487,853 49,928,809 Reinvestment of distributions 1,061,444 705,675 Cost of shares redeemed (129,324,388) (39,434,094) ------------- ------------ Total Series I transactions 13,224,909 11,200,390 Series II Net proceeds from sales of shares 52,882,787 20,465,229 Reinvestment of distributions 206,244 75,519 Cost of shares redeemed (45,276,353) (14,986,641) ------------- ------------ Total Series II transactions 7,812,678 5,554,107 Series III Net proceeds from sales of shares 3,260 - Reinvestment of distributions 45 - Cost of shares redeemed - - ------------- ------------ Total Series III transactions 3,305 - Net increase (decrease) in net assets from capital share transactions 21,040,892 16,754,497 ------------- ------------ Increase (decrease) in net assets 43,363,206 6,340,433 Net assets at beginning of period 56,013,235 49,672,802 ------------- ------------ Net assets at end of period $ 99,376,441 $56,013,235 ============= ============ Undistributed net investment income (loss) ($414,752) ($113,818) ============= ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 18,503,819 6,569,236 Reinvestment of distributions 117,800 101,956 Shares redeemed (16,841,617) (5,222,615) ------------- ------------ Net increase (decrease) 1,780,002 1,448,577 ============= ============ Series II Shares sold 7,354,839 2,771,740 Reinvestment of distributions 23,081 10,929 Shares redeemed (6,253,249) (2,015,731) ------------- ------------ Net increase (decrease) 1,124,671 766,938 ============= ============ Series III Shares sold 369 - Reinvestment of distributions 5 - Shares redeemed - - ------------- ------------ Net increase (decrease) 374 - ============= ============
The accompanying notes are an integral part of the financial statements. 56 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
MID CAP TOTAL STOCK INDEX MARKET INDEX TRUST TRUST ----------------------------- ---------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------- ------------- ------------- ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 758,800 $ 514,694 $ 1,108,452 $ 661,626 Net realized gain (loss) on: Investment transactions (538,515) 124,569 (2,414,471) (1,567,504) Futures contracts 2,015,469 (1,124,813) 2,705,866 (1,083,922) Change in unrealized appreciation (depreciation) on: Investments 38,733,113 (18,180,112) 29,822,622 (14,544,211) Futures contracts 99,724 (73,042) 313,041 (99,885) ------------- ------------- ------------- ------------ Net increase (decrease) in net assets resulting from operations 41,068,591 (18,738,704) 31,535,510 (16,633,896) Distribution to shareholders from: Net investment income Series I - (447,875) - (588,347) Series II - (69,140) - (63,516) ------------- ------------- ------------- ------------ Total distributions - (517,015) - (651,863) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 36,211,453 69,200,941 51,771,674 31,050,881 Reinvestment of distributions - 447,875 - 588,347 Cost of shares redeemed (11,130,542) (21,778,079) (4,467,132) (28,316,936) ------------- ------------- ------------- ------------ Total Series I transactions 25,080,911 47,870,737 47,304,542 3,322,292 Series II Net proceeds from sales of shares 22,905,338 13,295,081 19,542,467 6,585,604 Reinvestment of distributions - 69,140 - 63,516 Cost of shares redeemed (1,234,853) (84,388) (578,539) (210,466) ------------- ------------- ------------- ------------ Total Series II transactions 21,670,485 13,279,833 18,963,928 6,438,654 Series III Net proceeds from sales of shares 451 - 655 - ------------- ------------- ------------- ------------ Total Series III transactions 451 - 655 - Net increase (decrease) in net assets from capital share transactions 46,751,847 61,150,570 66,269,125 9,760,946 ------------- ------------- ------------- ------------ Increase (decrease) in net assets 87,820,438 41,894,851 97,804,635 (7,524,813) Net assets at beginning of period 100,092,167 58,197,316 66,132,368 73,657,181 ------------- ------------- ------------- ------------ Net assets at end of period $ 187,912,605 $ 100,092,167 $ 163,937,003 $ 66,132,368 ============= ============= ============= ============ Undistributed net investment income (loss) $ 758,800 $ 10,612 $ 1,108,452 $ 19,763 ============= ============= ============= ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 2,876,765 5,383,063 6,098,248 3,557,679 Reinvestment of distributions - 41,544 - 77,211 Shares redeemed (966,553) (1,896,454) (506,733) (3,305,169) ------------- ------------- ------------- ------------ Net increase (decrease) 1,910,212 3,528,153 5,591,515 329,721 ============= ============= ============= ============ Series II Shares sold 1,857,852 1,186,158 2,278,686 828,077 Reinvestment of distributions - 6,432 - 8,346 Shares redeemed (105,835) (7,090) (70,038) (27,437) ------------- ------------- ------------- ------------ Net increase (decrease) 1,752,017 1,185,500 2,208,648 808,986 ============= ============= ============= ============ Series III Shares sold 33 - 69 - ------------- ------------- ------------- ------------ Net increase (decrease) 33 - 69 - ============= ============= ============= ============ 500 INDEX TRUST ------------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 --------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 10,528,839 $ 7,774,302 Net realized gain (loss) on: Investment transactions (2,966,130) (21,614,857) Futures contracts 1,626,950 (5,959,220) Change in unrealized appreciation (depreciation) on: Investments 216,497,982 (170,991,162) Futures contracts 855,181 (382,534) --------------- ------------- Net increase (decrease) in net assets resulting from operations 226,542,822 (191,173,471) Distribution to shareholders from: Net investment income Series I (7,127,933) (16,488) Series II (598,736) (7) --------------- ------------- Total distributions (7,726,669) (16,495) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 151,051,446 160,628,263 Reinvestment of distributions 7,127,933 16,488 Cost of shares redeemed (55,546,250) (64,842,556) --------------- ------------- Total Series I transactions 102,633,129 95,802,195 Series II Net proceeds from sales of shares 61,850,734 42,734,245 Reinvestment of distributions 598,736 7 Cost of shares redeemed (4,386,889) (3,225,546) --------------- ------------- Total Series II transactions 58,062,581 39,508,706 Series III Net proceeds from sales of shares 14,668 - --------------- ------------- Total Series III transactions 14,668 - Net increase (decrease) in net assets from capital share transactions 160,710,378 135,310,901 --------------- ------------- Increase (decrease) in net assets 379,526,531 (55,879,065) Net assets at beginning of period 716,680,297 772,559,362 --------------- ------------- Net assets at end of period $ 1,096,206,828 $ 716,680,297 =============== ============= Undistributed net investment income (loss) $ 10,528,836 $ 7,736,698 =============== ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 18,339,618 18,529,081 Reinvestment of distributions 945,349 1,723 Shares redeemed (6,725,536) (8,044,441) --------------- ------------- Net increase (decrease) 12,559,431 10,486,363 =============== ============= Series II Shares sold 7,486,152 5,469,301 Reinvestment of distributions 79,619 1 Shares redeemed (528,756) (428,248) --------------- ------------- Net increase (decrease) 7,037,015 5,041,054 =============== ============= Series III Shares sold 1,618 - --------------- ------------- Net increase (decrease) 1,618 - =============== =============
The accompanying notes are an integral part of the financial statements. 57 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
LIFESTYLE LIFESTYLE AGGRESSIVE 1000 GROWTH 820 TRUST TRUST ----------------------------- ------------------------------- YEAR YEAR YEAR YEAR Ended Ended ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------- ------------- --------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 629,687 $ 638,986 $ 9,553,144 $ 9,577,690 Capital gain distributions received 238,829 720,320 2,668,830 6,323,688 Net realized (gain) loss on: Investment transactions (2,679,944) (39,630,439) (1,255,485) (131,612,796) Change in unrealized appreciation (depreciation) on: Investments 105,973,948 (8,209,936) 339,229,915 (25,127,842) ------------- ------------- --------------- ------------- Net increase (decrease) in net assets resulting from operations 104,162,520 (46,481,069) 350,196,404 (140,839,260) Distribution to shareholders from: Net investment income Series I (551,528) (695,241) (7,832,224) (10,160,087) Series II (78,161) (1,406) (1,720,921) (21,800) Net realized short term gains on investments, futures, and foreign currency transactions Series I - - - - Series II - - - - Capital gain distributions received from mutual funds Series I (13,346) - (1,059,990) (1,686,289) Series II (2,430) - (243,237) (2,206) Return of capital Series I (386,477) (810,346) (1,828,407) (4,629,887) Series II (70,371) (1,640) (419,563) (5,306) ------------- ------------- --------------- ------------- Total distributions (1,102,313) (1,508,633) (13,104,342) (16,505,575) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 72,057,601 55,693,550 218,054,480 212,549,319 Reinvestment of distributions 932,517 1,505,587 10,658,537 16,476,263 Cost of shares redeemed (7,272,433) (11,676,851) (11,287,307) (34,758,314) ------------- ------------- --------------- ------------- Total Series I transactions 65,717,685 45,522,286 217,425,710 194,267,268 Series II Net proceeds from sales of shares 106,027,600 28,364,757 433,873,792 123,673,253 Reinvestment of distributions 169,796 3,046 2,445,804 29,312 Cost of shares redeemed (2,275,959) (381,585) (1,666,786) (662,415) ------------- ------------- --------------- ------------- Total Series II transactions 103,921,437 27,986,218 434,652,810 123,040,150 Series III Net proceeds from sales of shares 6,978 - 15,138 - Cost of shares redeemed - - - - ------------- ------------- --------------- ------------- Total Series III transactions 6,978 - 15,138 - Net increase (decrease) in net assets from capital share transactions 169,646,100 73,508,504 652,093,658 317,307,418 ------------- ------------- --------------- ------------- Increase (decrease) in net assets 272,706,307 25,518,802 989,185,720 159,962,583 Net assets at beginning of period 212,991,668 187,472,866 886,510,534 726,547,951 ------------- ------------- --------------- ------------- Net assets at end of period $ 485,697,975 $ 212,991,668 $ 1,875,696,254 $ 886,510,534 ============= ============= =============== ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 7,866,276 5,934,544 20,804,878 20,120,218 Reinvestment of distributions 117,446 147,462 1,168,699 1,506,962 Shares redeemed (819,009) (1,371,440) (1,198,483) (3,727,067) ------------- ------------- --------------- ------------- Net increase (decrease) 7,164,713 4,710,566 20,775,094 17,900,113 ============= ============= =============== ============= Series II Shares sold 11,338,295 3,373,364 41,829,293 13,101,886 Reinvestment of distributions 21,385 298 268,180 3,025 Shares redeemed (256,324) (44,978) (150,519) (76,227) ------------- ------------- --------------- ------------- Net increase (decrease) 11,103,356 3,328,684 41,946,954 13,028,684 ============= ============= =============== ============= Series III Shares sold 668 - 1,306 - Shares redeemed - - - - ------------- ------------- --------------- ------------- Net increase (decrease) 668 - 1,306 - ============= ============= =============== ============= LIFESTYLE BALANCED 640 TRUST --------------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 --------------- --------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 21,053,407 $ 20,643,509 Capital gain distributions received 8,517,698 5,566,154 Net realized (gain) loss on: Investment transactions 26,761,312 (119,654,241) Change in unrealized appreciation (depreciation) on: Investments 274,682,779 2,595,162 --------------- --------------- Net increase (decrease) in net assets resulting from operations 331,015,196 (90,849,416) Distribution to shareholders from: Net investment income Series I (16,640,017) (21,243,448) Series II (4,413,406) (58,135) Net realized short term gains on investments, futures, and foreign currency transactions Series I - (1,155,339) Series II - (1,948) Capital gain distributions received from mutual funds Series I (3,983,296) (2,409,198) Series II (1,075,498) (6,548) Return of capital Series I (3,523,990) (3,141,869) Series II (951,498) (8,539) --------------- --------------- Total distributions (30,587,705) (28,025,024) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 263,503,797 257,924,700 Reinvestment of distributions 24,084,698 27,949,854 Cost of shares redeemed (26,320,081) (52,362,698) --------------- --------------- Total Series I transactions 261,268,414 233,511,856 Series II Net proceeds from sales of shares 482,549,328 164,204,185 Reinvestment of distributions 6,503,007 75,170 Cost of shares redeemed (3,939,916) (2,174) --------------- --------------- Total Series II transactions 485,112,419 164,277,181 Series III Net proceeds from sales of shares 54,065 - Cost of shares redeemed (10,150) - --------------- --------------- Total Series III transactions 43,915 - Net increase (decrease) in net assets from capital share transactions 746,424,748 397,789,037 --------------- --------------- Increase (decrease) in net assets 1,046,852,239 278,914,597 Net assets at beginning of period 1,024,129,887 745,215,290 --------------- --------------- Net assets at end of period $ 2,070,982,126 $ 1,024,129,887 =============== =============== +++ Capital Shares Issued and Redeemed: Series I Shares sold 23,609,910 23,095,999 Reinvestment of distributions 2,379,911 2,446,813 Shares redeemed (2,376,953) (5,096,039) --------------- --------------- Net increase (decrease) 23,612,868 20,446,773 =============== =============== Series II Shares sold 43,283,531 15,939,384 Reinvestment of distributions 642,589 6,854 Shares redeemed (333,127) (188) --------------- --------------- Net increase (decrease) 43,592,993 15,946,050 =============== =============== Series III Shares sold 4,579 - Shares redeemed (858) - --------------- --------------- Net increase (decrease) 3,721 - =============== ===============
The accompanying notes are an integral part of the financial statements. 58 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
LIFESTYLE LIFESTYLE MODERATE 460 CONSERVATIVE 280 TRUST TRUST ----------------------------- ----------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------- ------------- ------------- ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) $ 10,941,479 $ 9,461,826 $ 10,610,389 $ 5,751,454 Capital gain distributions received 3,702,356 364,686 2,904,221 837,528 Net realized gain (loss) on: Investment transactions 9,437,052 (20,119,565) 6,385,834 (2,807,635) Change in unrealized appreciation (depreciation) on: Investments 71,269,154 (2,039,725) 23,769,758 1,453,414 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 95,350,041 (12,332,778) 43,670,202 5,234,761 Distribution to shareholders from: Net investment income Series I (8,258,258) (9,596,133) (8,483,781) (5,883,437) Series II (2,683,221) (48,041) (2,420,513) (41,469) Net realized short term gains on investments, futures, and foreign currency transactions Series I - - - (44,490) Series II - - - (103) Capital gain distributions received from mutual funds Series I (1,784,174) - (2,258,825) (549,122) Series II (586,713) - (645,396) (3,103) Return of capital Series I (1,314,474) (415,270) - (283,700) Series II (432,241) (5,365) - (1,603) ------------- ------------- ------------- ------------- Total distributions (15,059,081) (10,064,809) (13,808,515) (6,807,027) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 88,745,429 114,980,569 60,150,500 90,159,106 Reinvestment of distributions 11,332,573 10,011,403 10,742,606 6,760,749 Cost of shares redeemed (17,416,898) (22,007,699) (42,927,524) (17,959,319) ------------- ------------- ------------- ------------- Total Series I transactions 82,661,104 102,984,273 27,965,582 78,960,536 Series II Net proceeds from sales of shares 183,509,930 74,100,637 108,786,511 47,684,050 Reinvestment of distributions 3,726,508 53,406 3,065,909 46,278 Cost of shares redeemed (2,629,726) (391,213) (15,094,479) (806,771) ------------- ------------- ------------- ------------- Total Series II transactions 184,606,712 73,762,830 96,757,941 46,923,557 Series III Net proceeds from sales of shares 2,774 - 96,332 - Cost of shares redeemed - - - - ------------- ------------- ------------- ------------- Total Series III transactions 2,774 - 96,332 - Net increase (decrease) in net assets from capital share transactions 267,270,590 176,747,103 124,819,855 125,884,093 ------------- ------------- ------------- ------------- Increase (decrease) in net assets 347,561,550 154,349,516 154,681,542 124,311,827 Net assets at beginning of period 399,848,756 245,499,240 298,352,587 174,040,760 ------------- ------------- ------------- ------------- Net assets at end of period $ 747,410,306 $ 399,848,756 $ 453,034,129 $ 298,352,587 ============= ============= ============= ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 7,543,316 9,884,731 4,676,381 7,148,766 Reinvestment of distributions 1,030,234 850,983 864,886 534,919 Shares redeemed (1,488,150) (1,986,744) (3,308,849) (1,426,503) ------------- ------------- ------------- ------------- Net increase (decrease) 7,085,400 8,748,970 2,232,418 6,257,182 ============= ============= ============= ============= Series II Shares sold 15,604,581 6,648,175 8,418,887 3,812,140 Reinvestment of distributions 338,773 4,694 246,842 3,677 Shares redeemed (221,652) (35,852) (1,150,413) (65,110) ------------- ------------- ------------- ------------- Net increase (decrease) 15,721,702 6,617,017 7,515,316 3,750,707 ============= ============= ============= ============= Series III Shares sold 222 - 7,431 - Shares redeemed - - - - ------------- ------------- ------------- ------------- Net increase (decrease) 222 - 7,431 - ============= ============= ============= ============= SMALL-MID CAP TRUST ---------------------------- YEAR YEAR ENDED ENDED 12/31/2003 12/31/2002 ------------- ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) ($328,832) ($9,489) Capital gain distributions received - - Net realized gain (loss) on: Investment transactions 585,006 (86,830) Change in unrealized appreciation (depreciation) on: Investments 25,597,132 (3,423,192) ------------- ------------ Net increase (decrease) in net assets resulting from operations 25,853,306 (3,519,511) Distribution to shareholders from: Net investment income Series I - (4) Series II - - Net realized short term gains on investments, futures, and foreign currency transactions Series I - - Series II - - Capital gain distributions received from mutual funds Series I - - Series II - - Return of capital Series I - - Series II - - ------------- ------------ Total distributions - (4) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 44,020,869 69,191,701 Reinvestment of distributions - 4 Cost of shares redeemed (22,803,780) (5,006,913) ------------- ------------ Total Series I transactions 21,217,089 64,184,792 Series II Net proceeds from sales of shares 39,443,325 11,268,974 Reinvestment of distributions - - Cost of shares redeemed (2,436,274) (29,621) ------------- ------------ Total Series II transactions 37,007,051 11,239,353 Series III Net proceeds from sales of shares 2,712 - Cost of shares redeemed (556) - ------------- ------------ Total Series III transactions 2,156 - Net increase (decrease) in net assets from capital share transactions 58,226,296 75,424,145 ------------- ------------ Increase (decrease) in net assets 84,079,602 71,904,630 Net assets at beginning of period 74,794,492 2,889,862 ------------- ------------ Net assets at end of period $ 158,874,094 $ 74,794,492 ============= ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 4,206,267 6,745,951 Reinvestment of distributions - - Shares redeemed (2,174,547) (496,271) ------------- ------------ Net increase (decrease) 2,031,720 6,249,680 ============= ============ Series II Shares sold 3,702,249 1,104,516 Reinvestment of distributions - - Shares redeemed (221,822) (2,887) ------------- ------------ Net increase (decrease) 3,480,427 1,101,629 ============= ============ Series III Shares sold 235 - Shares redeemed (47) - ------------- ------------ Net increase (decrease) 188 - ============= ============
The accompanying notes are an integral part of the financial statements. 59 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
INTERNATIONAL HIGH EQUITY SELECT GRADE BOND TRUST TRUST ---------------------------- ---------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 12/31/2003 12/31/2002 12/31/2003 12/31/2002 ------------- ------------ ------------- ------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,126,871 ($18,819) $ 3,168,939 $ 414,589 Net realized gain (loss) on: Investment transactions 453,260 (185,009) 198,012 185,172 Foreign currency and forward foreign currency contracts (22,158) (240,210) - - Change in unrealized appreciation (depreciation) on: Investments 21,997,217 (717,522) (1,910,640) 1,349,499 Foreign currency and forward foreign currency contracts 2,049 219 - - ------------- ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations 23,557,239 (1,161,341) 1,456,311 1,949,260 Distribution to shareholders from: Net investment income Series I - - - (372,010) Series II - - - (67,179) Net realized short term gains on investments, futures, and foreign currency transactions Series I - - (34,642) (83,763) Series II - - (9,434) (15,439) Net realized long term gains on investments, futures, and foreign currency transactions Series I - - - (9,753) Series II - - - (1,798) ------------- ------------ ------------- ------------ Total distributions - - (44,076) (549,942) Capital Shares Transactions +++: Series I Net proceeds from sales of shares 39,873,937 52,830,578 66,583,399 82,486,925 Reinvestment of distributions - - 34,642 465,526 Cost of shares redeemed (29,143,924) (5,138,829) (30,554,720) (9,491,065) ------------- ------------ ------------- ------------ Total Series I transactions 10,730,013 47,691,749 36,063,321 73,461,386 Series II Net proceeds from sales of shares 29,983,067 8,379,920 52,362,864 14,473,900 Reinvestment of distributions - - 9,434 84,416 Cost of shares redeemed (4,685,899) (34,310) (3,600,499) (66,644) ------------- ------------ ------------- ------------ Total Series II transactions 25,297,168 8,345,610 48,771,799 14,491,672 Series III Net proceeds from sales of shares 1,676 - 7,260 - Cost of shares redeemed (324) - (599) - ------------- ------------ ------------- ------------ Total Series III transactions 1,352 - 6,661 - Net increase (decrease) in net assets from capital share transactions 36,028,533 56,037,359 84,841,781 87,953,058 ------------- ------------ ------------- ------------ Increase (decrease) in net assets 59,585,772 54,876,018 86,254,016 89,352,376 Net assets at beginning of period 57,773,018 2,897,000 92,606,190 3,253,814 ------------- ------------ ------------- ------------ Net assets at end of period $ 117,358,790 $ 57,773,018 $ 178,860,206 $ 92,606,190 ============= ============ ============= ============ Undistributed net investment income (loss) $ 866,223 ($ 238,490) $ 4,038,766 $ 1,065 ============= ============ ============= ============ +++ Capital Shares Issued and Redeemed: Series I Shares sold 3,617,643 4,907,682 4,815,446 6,061,733 Reinvestment of distributions - - 2,507 33,760 Shares redeemed (2,634,373) (485,518) (2,209,443) (695,472) ------------- ------------ ------------- ------------ Net increase (decrease) 983,270 4,422,164 2,608,510 5,400,021 ============= ============ ============= ============ Series II Shares sold 2,628,065 781,906 3,778,183 1,062,895 Reinvestment of distributions - - 683 6,122 Shares redeemed (409,095) (3,210) (260,641) (4,831) ------------- ------------ ------------- ------------ Net increase (decrease) 2,218,970 778,696 3,518,225 1,064,186 ============= ============ ============= ============ Series III Shares sold 136 - 528 - Shares redeemed (26) - (43) - ------------- ------------ ------------- ------------ Net increase (decrease) 110 - 485 - ============= ============ ============= ============ AMERICAN GROWTH TRUST ------------- 05/05/2003* TO 12/31/2003 ------------- Increase (decrease) in net assets: Operations: Net investment income (loss) ($181,476) Net realized gain (loss) on: Investment transactions 316,735 Foreign currency and forward foreign currency contracts - Change in unrealized appreciation (depreciation) on: Investments 23,779,663 Foreign currency and forward foreign currency contracts - ------------- Net increase (decrease) in net assets resulting from operations 23,914,922 Distribution to shareholders from: Net investment income Series I - Series II - Net realized short term gains on investments, futures, and foreign currency transactions Series I - Series II - Net realized long term gains on investments, futures, and foreign currency transactions Series I - Series II - ------------- Total distributions - Capital Shares Transactions +++: Series I Net proceeds from sales of shares 3,223,702 Reinvestment of distributions - Cost of shares redeemed (43,868) ------------- Total Series I transactions 3,179,834 Series II Net proceeds from sales of shares 247,826,858 Reinvestment of distributions - Cost of shares redeemed (1,758,288) ------------- Total Series II transactions 246,068,570 Series III Net proceeds from sales of shares - Cost of shares redeemed - ------------- Total Series III transactions - Net increase (decrease) in net assets from capital share transactions 249,248,404 ------------- Increase (decrease) in net assets 273,163,326 Net assets at beginning of period - ------------- Net assets at end of period $ 273,163,326 ============= Undistributed net investment income (loss) - ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 222,667 Reinvestment of distributions - Shares redeemed (2,924) ------------- Net increase (decrease) 219,743 ============= Series II Shares sold 17,622,971 Reinvestment of distributions - Shares redeemed (115,995) ------------- Net increase (decrease) 17,506,976 ============= Series III Shares sold - Shares redeemed - ------------- Net increase (decrease) - =============
* Commencement of operations The accompanying notes are an integral part of the financial statements. 60 MANUFACTURERS INVESTMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
AMERICAN AMERICAN AMERICAN BLUE CHIP INTERNATIONAL GROWTH-INCOME INCOME AND GROWTH TRUST TRUST TRUST ------------- ------------- ------------------ 05/05/2003* 05/05/2003* 05/05/2003* TO TO TO 12/31/2003 12/31/2003 12/31/2003 ------------- ------------- ------------------ Increase (decrease) in net assets: Operations: Net investment income (loss) $ 1,510,366 $ 1,059,354 ($387,607) Net realized gain (loss) on: Investment transactions 4,268,613 378,046 24,745 Change in unrealized appreciation (depreciation) on: Investments 27,474,298 15,391,112 23,727,477 ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 33,253,277 16,828,512 23,364,615 Capital Shares Transactions +++: Series I Net proceeds from sales of shares 18,395,157 1,150,406 1,186,088 Cost of shares redeemed (16,188,871) (5,035) (10,778) ------------- ------------- ------------- Total Series I transactions 2,206,286 1,145,371 1,175,310 Series II Net proceeds from sales of shares 155,296,373 167,587,027 157,767,096 Cost of shares redeemed (10,096,646) (2,079,335) (232,924) ------------- ------------- ------------- Total Series II transactions 145,199,727 165,507,692 157,534,172 Net increase (decrease) in net assets from capital share transactions 147,406,013 166,653,063 158,709,482 ------------- ------------- ------------- Increase (decrease) in net assets 180,659,290 183,481,575 182,074,097 ------------- ------------- ------------- Net assets at end of period $ 180,659,290 $ 183,481,575 $ 182,074,097 ============= ============= ============= Undistributed net investment income (loss) $ 1,510,366 $ 1,059,354 - ============= ============= ============= +++ Capital Shares Issued and Redeemed: Series I Shares sold 1,198,502 79,000 83,660 Shares redeemed (1,043,215) (347) (737) ------------- ------------- ------------- Net increase (decrease) 155,287 78,653 82,923 ============= ============= ============= Series II Shares sold 11,406,117 11,868,872 11,724,406 Shares redeemed (720,812) (136,430) (16,853) ------------- ------------- ------------- Net increase (decrease) 10,685,305 11,732,442 11,707,553 ============= ============= =============
* Commencement of operations The accompanying notes are an integral part of the financial statements. 61 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
SCIENCE & TECHNOLOGY TRUST ---------------------------------------------------------------------------------- SERIES I ---------------------------------------------------------------------------------- YEARS ENDED DECEMBER 31, ---------------------------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ------------- ------------- ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.60 $ 12.83 $ 23.24 $ 36.17 $ 19.52 Income from investment operations: Net investment income (loss) (0.07) (0.08) (0.13) (0.24) (0.06) Net realized and unrealized gain (loss) on investments and foreign currency transaction 3.90 (5.15) (9.36) (11.77) 19.43 ------------- ------------- ------------- ------------- ------------- Total from investment operations 3.83 (5.23) (9.49) (12.01) 19.37 ------------- ------------- ------------- ------------- ------------- Less distributions: Distributions from capital gains - - (0.92) (0.92) (2.72) ------------- ------------- ------------- ------------- ------------- Total distributions - - (0.92) (0.92) (2.72) ------------- ------------- ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 11.43 $ 7.60 $ 12.83 $ 23.24 $ 36.17 ============= ============= ============= ============= ============= TOTAL RETURN (B) 50.39% (40.76%) (41.25%) (34.06%) 99.49% Net assets, end of period (000's) $ 557,623 $ 358,553 $ 729,587 $ 1,262,181 $ 1,144,454 Ratio of expenses to average net assets 1.19% ** 1.17% 1.16% 1.15% 1.16% Ratio of expenses to average net assets after expense reductions 1.16% ** 1.15% 1.15% 1.14% 1.16% Ratio of net investment income (loss) to average net assets (0.79%) (0.87%) (0.80%) (0.73%) (0.40%) Portfolio turnover rate 56% ++ 59% 144% 133% 113%
SCIENCE & TECHNOLOGY TRUST ---------------------------------------------------- SERIES II SERIES III --------------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.59 $ 12.61 $ 10.61 Income from investment operations: Net investment income (loss) (0.10) (0.08) (0.03) Net realized and unrealized gain (loss) on investments and foreign currency transaction 3.93 (4.94) 0.85 ------------- ------------- ------------ Total from investment operations 3.83 (5.02) 0.82 ------------- ------------- ------------ Less distributions: Distributions from capital gains - - - ------------- ------------- ------------ Total distributions - - - ------------- ------------- ------------ NET ASSET VALUE, END OF PERIOD $ 11.42 $ 7.59 $ 11.43 ============= ============= ============ TOTAL RETURN (B) 50.46% (39.81%) + 7.73% + Net assets, end of period (000's) $ 65,613 $ 11,064 $ 6 Ratio of expenses to average net assets 1.39% ** 1.37% (A) 15.13% (A) Ratio of expenses to average net assets after expense reductions 1.36% ** 1.35% (A) 1.51% (A) Ratio of net investment income (loss) to average net assets (0.99%) (1.07%)(A) (1.00%)(A) Portfolio turnover rate 56% ++ 59% 56%
PACIFIC RIM EMERGING MARKETS TRUST ------------------------------------------------------------------ SERIES I ------------------------------------------------------------------ YEARS ENDED DECEMBER 31, ------------------------------------------------------------------ 2003+++ 2002+++ 2001+++ 2000+++ 1999 ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 5.81 $ 6.65 $ 8.20 $ 10.88 $ 6.83 Income from investment operations: Net investment income (loss) 0.05 0.02 0.02 0.06 0.09 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.29 (0.85) (1.54) (2.70) 4.17 ---------- ---------- ---------- ---------- ---------- Total from investment operations 2.34 (0.83) (1.52) (2.64) 4.26 ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income (0.01) (0.01) (0.03) (0.04) (0.21) ---------- ---------- ---------- ---------- ---------- Total distributions (0.01) (0.01) (0.03) (0.04) (0.21) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 8.14 $ 5.81 $ 6.65 $ 8.20 $ 10.88 ========== ========== ========== ========== ========== TOTAL RETURN (C) 40.37% (12.53%) (18.57%) (24.37%) 62.87% Net assets, end of period (000's) $ 66,612 $ 45,937 $ 55,981 $ 83,370 $ 94,753 Ratio of expenses to average net assets 1.28% 1.23% 1.23% 1.03% 1.11% Ratio of expenses to average net assets after expense reductions 1.28% 1.23% 1.23% 1.03% 1.11% Ratio of net investment income (loss) to average net assets 0.80% 0.24% 0.32% 0.61% 0.90% Portfolio turnover rate 57% 28% 76% 55% 42%
PACIFIC RIM EMERGING MARKETS TRUST ------------------------------------------------- SERIES II SERIES III ------------------------------ ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 5.81 $ 6.63 $ 7.35 Income from investment operations: Net investment income (loss) 0.03 (0.02) (0.02) Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.30 (0.79) 0.81 ------------- ------------- ------------- Total from investment operations 2.33 (0.81) 0.79 ------------- ------------- ------------- Less distributions: Dividends from net investment income (0.02) (0.01) - ------------- ------------- ------------- Total distributions (0.02) (0.01) - ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 8.12 $ 5.81 $ 8.14 ============= ============= ============= TOTAL RETURN (C) 40.17% (12.27%) + 10.75% + Net assets, end of period (000's) $ 19,594 $ 4,287 $ 3 Ratio of expenses to average net assets 1.48% 1.43% (A) 22.22% (A) Ratio of expenses to average net assets after expense reductions 1.48% 1.43% (A) 1.63% (A) Ratio of net investment income (loss) to average net assets 0.38% (0.28%)(A) (0.74%)(A) Portfolio turnover rate 57% 28% 57%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized ** The ratios of operating expenses excluding costs incurred in connection with the reorganization before and after expense reductions were 1.18% and 1.15% for Series I and 1.38% and 1.35% for Series II, respectively. ++ The portfolio turnover rate does not include the assets acquired in the merger. (A) Annualized (B) The total return for the years ended 2003, 2002, 2001 and 2000 for Series I, for the year ended 2003 and the period ended December 31, 2002 for Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 62 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
HEALTH SCIENCES TRUST ----------------------------------------- SERIES I ----------------------------------------- YEARS ENDED DECEMBER 31, 4/30/2001* ------------------------ TO 2003+++ 2002+++ 12/31/2001+++ ---------- ---------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.83 $ 13.54 $ 12.50 Income from investment operations: Net investment income (loss) (0.10) (0.08) (0.07) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.66 (3.60) 1.11 ---------- ---------- ------------- Total from investment operations 3.56 (3.68) 1.04 ---------- ---------- ------------- Less distributions: Distributions from capital gains - (0.03) - ---------- ---------- ------------- Total distributions - (0.03) - ---------- ---------- ------------- NET ASSET VALUE, END OF PERIOD $ 13.39 $ 9.83 $ 13.54 ========== ========== ============= TOTAL RETURN (B) 36.22% (27.24%) 8.32% + Net assets, end of period (000's) $ 100,829 $ 62,075 $ 51,568 Ratio of expenses to average net assets 1.23% 1.25% 1.45% (A) Ratio of expenses to average net assets after expense reductions 1.21% 1.23% 1.44% (A) Ratio of net investment income (loss) to average net assets (0.82%) (0.74%) (0.76%) (A) Portfolio turnover rate 44% 55% 81%
HEALTH SCIENCES TRUST ------------------------------------------------- SERIES II SERIES III ------------------------------ ------------- YEAR END 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.83 $ 12.90 $ 12.64 Income from investment operations: Net investment income (loss) (0.12) (0.09) (0.05) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.65 (2.95) 0.80 ------------- ------------- ------------- Total from investment operations 3.53 (3.04) 0.75 ------------- ------------- ------------- Less distributions: Distributions from capital gains - (0.03) - ------------- ------------- ------------- Total distributions - (0.03) - ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 13.36 $ 9.83 $ 13.39 ============= ============= ============= TOTAL RETURN (B) 35.91% (23.63%) + 5.93% + Net assets, end of period (000's) $ 53,916 $ 15,924 $ 37 Ratio of expenses to average net assets 1.43% 1.45% (A) 10.76% (A) Ratio of expenses to average net assets after expense reductions 1.41% 1.43% (A) 1.56% (A) Ratio of net investment income (loss) to average net assets (1.04%) (1.02%)(A) (1.31%)(A) Portfolio turnover rate 44% 55% 44%
EMERGING GROWTH TRUST --------------------------------------------------- SERIES I SERIES II SERIES III ------------- ------------- ------------- 5/5/2003* 5/5/2003* 9/5/2003* TO TO TO 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.50 $ 15.61 Income from investment operations: Net investment income (loss) (0.09) (0.11) 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.95 3.95 0.74 ------------- ------------- ------------- Total from investment operations 3.86 3.84 0.75 ------------- ------------- ------------- Less distributions: Dividends from net investment income (0.61) (0.61) (0.61) ------------- ------------- ------------- Total distributions (0.61) (0.61) (0.61) ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 15.75 $ 15.73 $ 15.75 ============= ============= ============= TOTAL RETURN (C) 30.84% + 30.68% + 4.77% + Net assets, end of period (000's) $ 3,178 $ 6,080 - ## Ratio of expenses to average net assets 2.54% (A) 2.74% (A) 354.65% (A) Ratio of expenses to average net assets after expense reductions 1.35% (A) 1.55% (A) 1.70% (A) Ratio of net investment income (loss) to average net assets (0.89%)(A) (1.08%)(A) 0.19% (A) Portfolio turnover rate 183% 183% 183%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations ## Amount is less than $1,000 + Not Annualized (A) Annualized (B) The total return for the years ended 2003, 2002 and the period ended December 31, 2001 for Series I, for the year ended 2003 and the period ended December 31, 2002 for Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the period ended December 31, 2003 for Series I, Series II and Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 63 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
AGGRESSIVE GROWTH TRUST ----------------------------------------------------------------------- SERIES I ----------------------------------------------------------------------- YEARS ENDED DECEMBER 31, -------------------------------------------------------- ----------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ----------- ----------- ----------- ----------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.92 $ 13.22 $ 17.86 $ 17.34 $ 13.04 Income from investment operations: Net investment income (loss) (0.09) (0.09) (0.11) (0.12) (0.06) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.45 (3.21) (4.53) 0.64 4.36 ----------- ----------- ----------- ----------- ----------- Total from investment operations 3.36 (3.30) (4.64) 0.52 4.30 ----------- ----------- ----------- ----------- ----------- NET ASSET VALUE, END OF PERIOD $ 13.28 $ 9.92 $ 13.22 $ 17.86 $ 17.34 =========== =========== =========== =========== =========== TOTAL RETURN 33.87% (24.96%) (25.98%) 3.00% 32.98% Net assets, end of period (000's) $ 261,138 $ 225,798 $ 309,746 $ 416,643 $ 135,503 Ratio of expenses to average net assets 1.09% 1.09% 1.07% 1.07% 1.15% Ratio of net investment income (loss) to average net assets (0.81%) (0.80%) (0.73%) (0.61%) (0.59%) Portfolio turnover rate 71% 104% 96% 70% 161%
AGGRESSIVE GROWTH TRUST ------------------------------------------------- SERIES II SERIES III ------------------------------ ------------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.92 $ 12.90 $ 12.46 Income from investment operations: Net investment income (loss) (0.12) (0.12) (0.01) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.45 (2.86) 0.83 ------------- ------------- ------------ Total from investment operations 3.33 (2.98) 0.82 ------------- ------------- ------------ NET ASSET VALUE, END OF PERIOD $ 13.25 $ 9.92 $ 13.28 ============= ============= ============ TOTAL RETURN 33.57% (23.1%)+ 6.58% + Net assets, end of period (000's) $ 40,267 $ 17,322 - ## Ratio of expenses to average net assets 1.29% 1.29%(A) 1.44%(A) Ratio of net investment income (loss) to average net assets (1.03%) (1.27%)(A) (0.25)%(A) Portfolio turnover rate 71% 104% 71%
EMERGING SMALL COMPANY TRUST ------------------------------------------------------------- SERIES I ------------------------------------------------------------- YEARS ENDED DECEMBER 31, ------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ------------ ---------- --------- --------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 18.45 $ 26.06 $ 35.02 $ 40.74 $ 23.82 Income from investment operations: Net investment income (loss) (0.12) (0.12) (0.08) (0.02) (0.09) Net realized and unrealized gain (loss) on investments and foreign currency transactions 7.45 (7.49) (7.75) (1.33) 17.35 ----------- ---------- ---------- --------- ---------- Total from investment operations 7.33 (7.61) (7.83) (1.35) 17.26 ----------- ---------- --------- --------- ---------- Less distributions: Distributions from capital gains - - (1.13) (4.37) (0.34) ----------- ---------- --------- --------- ---------- Total distributions - - (1.13) (4.37) (0.34) ----------- ---------- ---------- --------- ---------- NET ASSET VALUE, END OF PERIOD $ 25.78 $ 18.45 $ 26.06 $ 35.02 $ 40.74 =========== ========== ========= ========= ========== TOTAL RETURN (B) 39.73% (29.20%) (22.24%) (4.30%) 73.53% Net assets, end of period (000's) $ 401,433 $ 293,594 $ 447,673 $ 573,471 $ 453,152 Ratio of expenses to average net assets 1.11% 1.12% 1.12% 1.10% 1.12% Ratio of expenses to average net assets after expense reductions 1.11% 1.12% 1.12% 1.10% 1.12% Ratio of net investment income (loss) to average net assets (0.58%) (0.57%) (0.30%) (0.04%) (0.35%) Portfolio turnover rate 51% 35% 48% 23% 136% EMERGING SMALL COMPANY TRUST ------------------------------------------- SERIES II SERIES III --------------------------- ------------ YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 18.44 $ 25.13 $ 23.96 Income from investment operations: Net investment income (loss) (0.18) (0.11) (0.08) Net realized and unrealized gain (loss) on investments and foreign currency transactions 7.46 (6.58) 1.90 ------------ ------------ ------------ Total from investment operations 7.28 (6.69) 1.82 ------------ ------------ ------------ Less distributions: Distributions from capital gains - - - ------------ ------------ ------------ Total distributions - - - ------------ ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 25.72 $ 18.44 $ 25.78 ============ ============ ============ TOTAL RETURN (B) 39.48% (26.62%)+ 7.60%+ Net assets, end of period (000's) $ 82,836 $ 17,791 $ 1 Ratio of expenses to average net assets 1.31% 1.32%(A) 20.19%(A) Ratio of expenses to average net assets after expense reductions 1.31% 1.32%(A) 1.46%(A) Ratio of net investment income (loss) to average net assets (0.82%) (0.63%)(A) (0.98%)(A) Portfolio turnover rate 51% 35% 51%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized ## Amount is less than $1,000 (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 64 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
SMALL COMPANY BLEND TRUST ------------------------------------------------------------- SERIES I ------------------------------------------------------------- YEARS ENDED DECEMBER 31, 05/01/1999* ----------------------------------------------- TO 2003+++ 2002+++ 2001+++ 2000+++ 12/31/1999 ---------- ---------- --------- --------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.16 $ 10.98 $ 11.31 $ 15.76 $ 12.50 Income from investment operations: Net investment income (loss) (0.01) - # 0.03 - # (0.01) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.25 (2.80) (0.30) (3.11) 3.58 ---------- ---------- --------- --------- ----------- Total from investment operations 3.24 (2.80) (0.27) (3.11) 3.57 ---------- ---------- --------- --------- ----------- Less distributions: Dividends from net investment income - (0.02) - - - Distributions from capital gains - - (0.06) (1.34) (0.31) ---------- ---------- --------- --------- ----------- Total distributions - (0.02) (0.06) (1.34) (0.31) ---------- ---------- --------- --------- ----------- NET ASSET VALUE, END OF PERIOD $ 11.40 $ 8.16 $ 10.98 $ 11.31 $ 15.76 ========== ========== ========= ========= =========== TOTAL RETURN 39.71% (25.55%) (2.31%) (19.74%) 28.56%+ Net assets, end of period (000's) $ 150,801 $ 106,357 $ 161,250 $ 95,123 $ 53,514 Ratio of expenses to average net assets 1.15% 1.15% 1.17% 1.19% 1.30%(A) Ratio of net investment income (loss) to average net assets (0.08%) (0.04%) 0.29% (0.01%) (0.12%)(A) Portfolio turnover rate 37% 48% 39% 49% 28% SMALL COMPANY BLEND TRUST ----------------------------- SERIES II ----------------------------- YEAR ENDED 1/28/2002* DECEMBER 31, TO 2003+++ 12/31/2002+++ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.15 $ 10.69 Income from investment operations: Net investment income (loss) (0.03) 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.26 (2.53) ------------- ----------- Total from investment operations 3.23 (2.52) ------------- ------------ Less distributions: Dividends from net investment income - (0.02) Distributions from capital gains - - ------------- ------------ Total distributions - (0.02) ------------- ------------ NET ASSET VALUE, END OF PERIOD $ 11.38 $ 8.15 ============= ============ TOTAL RETURN 39.63% (23.63%)+ Net assets, end of period (000's) $ 59,724 $ 16,014 Ratio of expenses to average net assets 1.35% 1.35%(A) Ratio of net investment income (loss) to average net assets (0.29%) 0.12%(A) Portfolio turnover rate 37% 48%
DYNAMIC GROWTH TRUST ------------------------------------------------------ SERIES I ------------------------------------------------------ YEARS ENDED DECEMBER 31, 5/1/2000* TO 2003+++ 2002+++ 2001+++ 12/31/2000+++ ------------ ---------- --------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 3.41 $ 4.76 $ 7.98 $ 12.50 Income from investment operations: Net investment income (loss) (0.03) (0.02) (0.02) 0.02 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.02 (1.33) (3.19) (4.54) ------------ ---------- --------- ------------ Total from investment operations 0.99 (1.35) (3.21) (4.52) ------------ ---------- --------- ------------ Less distributions: Dividends from net investment income - - (0.01) - ------------ ---------- --------- ------------ Total distributions - - (0.01) - ------------ ---------- --------- ------------ NET ASSET VALUE, END OF PERIOD $ 4.40 $ 3.41 $ 4.76 $ 7.98 ============ ========== ========= ============ TOTAL RETURN 29.03% (28.36%) (40.24%) (36.16%)+ Net assets, end of period (000's) $ 140,190 $ 63,745 $ 132,709 $ 135,758 Ratio of expenses to average net assets 1.09%** 1.10% 1.08% 1.07%(A) Ratio of net investment income (loss) to average net assets (0.68%) (0.55%) (0.43%) 0.35%(A) Portfolio turnover rate 133%++ 165% 180% 80% DYNAMIC GROWTH TRUST ----------------------------- SERIES II ---------- ------------------ YEAR ENDED 1/28/2002* DECEMBER 31, TO 2003+++ 12/31/2002+++ ------------ -------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 3.40 $ 4.40 Income from investment operations: Net investment income (loss) (0.03) (0.03) Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.02 (0.97) ----------- ------------ Total from investment operations 0.99 (1.00) ----------- ------------ Less distributions: Dividends from net investment income - - ----------- ------------ Total distributions - - ----------- ------------ NET ASSET VALUE, END OF PERIOD $ 4.39 $ 3.40 =========== ============ TOTAL RETURN 29.12% (22.73%)+ Net assets, end of period (000's) $ 41,792 $ 4,242 Ratio of expenses to average net assets 1.29%** 1.30%(A) Ratio of net investment income (loss) to average net assets (0.88%) (0.81%)(A) Portfolio turnover rate 133%++ 165%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized ** The ratios of operating expenses excluding costs incurred in connection with the reorganization before and after expense reductions were 1.08% for Series I and 1.28% for Series II. ++ The portfolio turnover rate does not include the assets acquired in the merger. The accompanying notes are an integral part of the financial statements. 65 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
MID CAP STOCK TRUST ------------------------------------------------------------- SERIES I ------------------------------------------------------------- YEARS ENDED DECEMBER 31, 05/01/1999* ----------------------------------------------- TO 2003+++ 2002+++ 2001+++ 2000+++ 12/31/1999 ---------- ---------- --------- --------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.34 $ 10.77 $ 12.10 $ 12.60 $ 12.50 Income from investment operations: Net investment income (loss) (0.05) (0.05) (0.04) (0.01) (0.01) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.58 (2.38) (1.29) (0.49) 0.11 ---------- ---------- --------- --------- ----------- Total from investment operations 3.53 (2.43) (1.33) (0.50) 0.10 ---------- ---------- --------- --------- ----------- NET ASSET VALUE, END OF PERIOD $ 11.87 $ 8.34 $ 10.77 $ 12.10 $ 12.60 ========== ========== ========= ========= =========== TOTAL RETURN (B) 42.33% (22.56%) (10.99%) (3.97%) 0.80%+ Net assets, end of period (000's) $ 260,191 $ 186,950 $ 153,732 $ 122,350 $ 99,504 Ratio of expenses to average net assets 0.99% 1.00% 1.00% 1.00% 1.03%(A) Ratio of expenses to average net assets after expense reductions 0.99% 1.00% 1.00% 1.00% 1.03%(A) Ratio of net investment income (loss) to average net assets (0.55%) (0.53%) (0.36%) (0.11%) (0.15%)(A) Portfolio turnover rate 132% 128% 170% 300% 36% MID CAP STOCK TRUST --------------------------------------------- SERIES II SERIES III --------------------------- ------------ YEAR ENDED DECEMBER 31, 1/28/2002* 9/05/2003* ------------ TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 8.34 $ 10.64 $ 10.75 Income from investment operations: Net investment income (loss) (0.08) (0.05) (0.04) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.58 (2.25) 1.16 ------------ ------------ ------------ Total from investment operations 3.50 (2.30) 1.12 ------------ ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 11.84 $ 8.34 $ 11.87 ============ ============ ============ TOTAL RETURN (B) 41.97% (21.62%)+ 10.42%+ Net assets, end of period (000's) $ 116,299 $ 31,611 $ 6 Ratio of expenses to average net assets 1.19% 1.20%(A) 39.49%(A) Ratio of expenses to average net assets after expense reductions 1.19% 1.20%(A) 1.34%(A) Ratio of net investment income (loss) to average net assets (0.75%) (0.70%)(A) (1.05%)(A) Portfolio turnover rate 132% 128% 132% NATURAL RESOURCES TRUST ------------------------------------------------- SERIES I SERIES II SERIES III ------------ ------------ ------------- 05/05/2003* 05/05/2003* 09/05/2003* TO TO TO 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ ------------ ------------ ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.50 $ 14.72 Income from investment operations: Net investment income (loss) 0.05 0.02 (0.01) Net realized and unrealized gain (loss) on investments and foreign currency transaction 5.45 5.46 3.29 ------------ ------------ ------------- Total from investment operations 5.50 5.48 3.28 ------------ ------------ ------------- NET ASSET VALUE, END OF PERIOD $ 18.00 $ 17.98 $ 18.00 ============ ============ ============= TOTAL RETURN (B) 44.00%+ 43.84%+ 22.28%+ Net assets, end of period (000's) $ 90,099 $ 74,882 $ 2 Ratio of expenses to average net assets 1.21%(A) 1.41%(A) 45.65%(A) Ratio of expenses to average net assets after expense reductions 1.21%(A) 1.41%(A) 1.56%(A) Ratio of net investment income (loss) to average net assets 0.54%(A) 0.23%(A) (0.20%)(A) Portfolio turnover rate 23% 23% 23%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 66 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
ALL CAP GROWTH TRUST -------------------------------------------------------------------- SERIES I -------------------------------------------------------------------- YEARS ENDED DECEMBER 31, -------------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ----------- ----------- ----------- ----------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.15 $ 14.75 $ 20.65 $ 24.89 $ 19.77 Income from investment operations: Net investment income (loss) (0.05) (0.06) (0.06) (0.09) (0.08) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.31 (3.54) (4.81) (2.32) 7.87 ----------- ----------- ----------- ----------- --------- Total from investment operations 3.26 (3.60) (4.87) (2.41) 7.79 ----------- ----------- ----------- ----------- --------- Less distributions: Distributions from capital gains - - (1.03) (1.83) (2.67) ----------- ----------- ----------- ----------- --------- Total distributions - - (1.03) (1.83) (2.67) ----------- ----------- ----------- ----------- --------- NET ASSET VALUE, END OF PERIOD $ 14.41 $ 11.15 $ 14.75 $ 20.65 $ 24.89 =========== =========== =========== =========== ========= TOTAL RETURN 29.24% (24.41%) (23.77%) (10.79)% 44.69% Net assets, end of period (000's) $ 520,181 $ 456,752 $ 637,879 $ 873,214 $ 662,674 Ratio of expenses to average net assets 1.01% 1.02% 1.01% 1.00% 1.03% Ratio of net investment income (loss) to average net assets (0.38%) (0.43%) (0.39%) (0.37%) (0.46%) Portfolio turnover rate 58% 80% 69% 103% 193% ALL CAP GROWTH TRUST ---------------------------------------------- SERIES II SERIES III ---------------------------- ------------- YEAR ENDED 1/28/2002* 09/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ----------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.14 $ 14.49 $ 13.48 Income from investment operations: Net investment income (loss) (0.07) (0.06) (0.03) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.30 (3.29) 0.96 ----------- ----------- -------- Total from investment operations 3.23 (3.35) 0.93 ----------- ----------- -------- Less distributions: Distributions from capital gains - - - ----------- ----------- -------- Total distributions - - - ----------- ----------- -------- NET ASSET VALUE, END OF PERIOD $ 14.37 $ 11.14 $ 14.41 =========== =========== ======== TOTAL RETURN 28.99% (23.12%) + 6.90% + Net assets, end of period (000's) $ 87,300 $ 24,896 $ 2 Ratio of expenses to average net assets 1.21% 1.22% (A) 1.36% (A) Ratio of net investment income (loss) to average net assets (0.58%) (0.54%) (A) (0.61%) (A) Portfolio turnover rate 58% 80% 58%
STRATEGIC OPPORTUNITIES TRUST -------------------------------------------------------------------- SERIES I -------------------------------------------------------------------- YEARS ENDED DECEMBER 31, -------------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ----------- ---------- ---------- ---------- ----------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.74 $ 12.64 $ 17.52 $ 21.90 $ 19.48 Income from investment operations: Net investment income (loss) 0.01 (0.03) (0.02) 0.08 0.07 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.99 (4.87) (2.47) (1.20) 4.75 ----------- ---------- ---------- ---------- ---------- Total from investment operations 2.00 (4.90) (2.49) (1.12) 4.82 ----------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income - - (0.08) (0.07) (0.09) Distributions from capital gains - - (2.31) (3.19) (2.31) ----------- ---------- ---------- ---------- ---------- Total distributions - - (2.39) (3.26) (2.40) ----------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 9.74 $ 7.74 $ 12.64 $ 17.52 $ 21.90 =========== ========== ========== ========== ========== TOTAL RETURN 25.84% (38.77%) (15.25%) (6.37%) 27.75% Net assets, end of period (000's) $ 533,891 $ 513,567 $1,057,285 $1,425,677 $1,673,228 Ratio of expenses to average net assets 0.93% 0.92% 0.91% 0.90% 0.88% Ratio of net investment income (loss) to average net assets 0.10% (0.28%) (0.12%) 0.41% 0.34% Portfolio turnover rate 185% 229% 260% 165% 129% STRATEGIC OPPORTUNITIES TRUST ----------------------------- SERIES II ----------------------------- YEAR ENDED 1/28/2002* DECEMBER 31, TO 2003+++ 12/31/2002+++ -------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.73 $ 11.99 Income from investment operations: Net investment income (loss) (0.01) - # Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.99 (4.26) ---------- ---------- Total from investment operations 1.98 (4.26) ---------- ---------- Less distributions: Dividends from net investment income - - Distributions from capital gains - - ---------- ---------- Total distributions - - ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 9.71 $ 7.73 ========== ========== TOTAL RETURN 25.61% (35.53%) + Net assets, end of period (000's) $ 22,968 $ 9,181 Ratio of expenses to average net assets 1.13% 1.12% (A) Ratio of net investment income (loss) to average net assets (0.13%) 0.02% (A) Portfolio turnover rate 185% 229%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized The accompanying notes are an integral part of the financial statements. 67 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FINANCIAL SERVICES TRUST ------------------------------------------- SERIES I ------------------------------------------- YEARS ENDED DECEMBER 31, 4/30/2001* ------------------------- TO 2003+++ 2002+++ 12/31/2001+++ ---------- ---------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.55 $ 11.63 $ 12.50 Income from investment operations: Net investment income (loss) 0.06 0.03 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.14 (2.11) (0.88) ---------- ---------- ---------- Total from investment operations 3.20 (2.08) (0.87) ---------- ---------- ---------- Less distributions: Dividends from net investment income (0.02) - # - # ---------- ---------- ---------- Total distributions (0.02) - # - # ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 12.73 $ 9.55 $ 11.63 ========== ========== ========== TOTAL RETURN (B) 33.58% (17.88%) (6.93%) + Net assets, end of period (000's) $ 52,467 $ 37,132 $ 24,840 Ratio of expenses to average net assets 1.05% 1.07% 1.21% (A) Ratio of expenses to average net assets after expense reductions 1.05% 1.07% 1.21% (A) Ratio of net investment income (loss) to average net assets 0.58% 0.31% 0.08% (A) Portfolio turnover rate 25% 34% 53% FINANCIAL SERVICES TRUST ------------------------------------------------- SERIES II SERIES III -------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.54 $ 11.48 $ 11.28 Income from investment operations: Net investment income (loss) 0.04 0.03 0.04 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.14 (1.97) 1.41 ---------- ---------- ----------- Total from investment operations 3.18 (1.94) 1.45 ---------- ---------- ----------- Less distributions: Dividends from net investment income (0.03) - # - ---------- ---------- ----------- Total distributions (0.03) - # - ---------- ---------- ----------- NET ASSET VALUE, END OF PERIOD $ 12.69 $ 9.54 $ 12.73 ========== ========== =========== TOTAL RETURN (B) 33.40% (16.90%) + 12.85% + Net assets, end of period (000's) $ 36,337 $ 12,138 - ## Ratio of expenses to average net assets 1.25% 1.27% (A) 186.33% (A) Ratio of expenses to average net assets after expense reductions 1.25% 1.27% (A) 1.40% (A) Ratio of net investment income (loss) to average net assets 0.37% 0.37% (A) 0.97% (A) Portfolio turnover rate 25% 34% 25%
INTERNATIONAL STOCK TRUST ----------------------------------------------------------- SERIES I ----------------------------------------------------------- YEARS ENDED DECEMBER 31, ----------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 -------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.48 $ 9.59 $ 12.81 $ 15.43 $ 12.98 Income from investment operations: Net investment income (loss) 0.08 0.07 0.04 0.01 0.08 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.17 (2.14) (2.75) (2.56) 3.76 -------- -------- -------- -------- -------- Total from investment operations 2.25 (2.07) (2.71) (2.55) 3.84 -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income (0.04) (0.04) (0.02) - (0.07) Distributions from capital gains - - (0.49) (0.07) (1.32) -------- -------- -------- -------- -------- Total Distributions (0.04) (0.04) (0.51) (0.07) (1.39) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 9.69 $ 7.48 $ 9.59 $ 12.81 $ 15.43 ======== ======== ======== ======== ======== TOTAL RETURN (C) 30.27% (21.69%) (21.54%) (16.57%) 29.71% Net assets, end of period (000's) $289,227 $246,794 $265,353 $298,054 $231,729 Ratio of expenses to average net assets 1.17% 1.18% 1.22% 1.24% 1.25% Ratio of expenses to average net assets after expense reductions 1.17% 1.17% 1.21% 1.23% 1.25% Ratio of net investment income (loss) to average net assets 1.07% 0.77% 0.42% 0.10% 0.58% Portfolio turnover rate 159% 78% 31% 39% 39% INTERNATIONAL STOCK TRUST ---------------------------------------------- SERIES II SERIES III ----------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.48 $ 9.92 $ 8.42 Income from investment operations: Net investment income (loss) 0.05 (0.01) (0.02) Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.20 (2.39) 1.29 ------- ------- ---------- Total from investment operations 2.25 (2.40) 1.27 ------- ------- ---------- Less distributions: Dividends from net investment income (0.05) (0.04) - Distributions from capital gains - - - ------- ------- ---------- Total Distributions (0.05) (0.04) - ------- ------- ---------- NET ASSET VALUE, END OF PERIOD $ 9.68 $ 7.48 $ 9.69 ======= ======= ========== TOTAL RETURN (C) 30.26% (24.29%) + 15.08% + Net assets, end of period (000's) $99,529 $32,674 $ 2 Ratio of expenses to average net assets 1.37% 1.38% (A) 1.52% (A) Ratio of expenses to average net assets after expense reductions 1.37% 1.37% (A) 1.52% (A) Ratio of net investment income (loss) to average net assets 0.65% (0.20%) (A) (0.58%) (A) Portfolio turnover rate 159% 78% 159%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. ## Amount is less than $1,000 + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the years ended 2002, 2001 and 2000 for Series I and for the period ended December 31, 2002 for Series II would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 68 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
OVERSEAS TRUST ----------------------------------------------------------- SERIES I ----------------------------------------------------------- YEARS ENDED DECEMBER 31, ----------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 -------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.69 $ 8.56 $ 11.91 $ 15.92 $ 11.33 Income from investment operations: Net investment income (loss) 0.04 0.03 0.07 0.05 0.08 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.87 (1.86) (2.47) (2.84) 4.51 -------- -------- -------- -------- -------- Total from investment operations 2.91 (1.83) (2.40) (2.79) 4.59 -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income (0.03) (0.04) (0.03) (0.13) - Distributions from capital gains - - (0.92) (1.09) - -------- -------- -------- -------- -------- Total distributions (0.03) (0.04) (0.95) (1.22) - -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 9.57 $ 6.69 $ 8.56 $ 11.91 $ 15.92 ======== ======== ======== ======== ======== TOTAL RETURN 43.83% (21.44%) (21.10%) (18.72%) 40.51% Net assets, end of period (000's) $364,179 $298,843 $428,911 $488,582 $404,223 Ratio of expenses to average net assets 1.13% 1.10% 1.10% 1.15% 1.21% Ratio of net investment income (loss) to average net assets 0.51% 0.37% 0.76% 0.40% 0.73% Portfolio turnover rate 103% 81% 100% 142% 147% OVERSEAS TRUST ---------------------------------------------- SERIES II SERIES III -------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.69 $ 8.25 $ 8.24 Income from investment operations: Net investment income (loss) 0.01 (0.02) (0.02) Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.89 (1.50) 1.35 ------- --------- ---------- Total from investment operations 2.90 (1.52) 1.33 ------- --------- ---------- Less distributions: Dividends from net investment income (0.04) (0.04) - Distributions from capital gains - - - ------- --------- ---------- Total distributions (0.04) (0.04) - --------- --------- ---------- NET ASSET VALUE, END OF PERIOD $ 9.55 $ 6.69 $ 9.57 ======= ========= ========== TOTAL RETURN 43.71% (18.49%) + 16.14% + Net assets, end of period (000's) $96,010 $ 27,680 $ 5 Ratio of expenses to average net assets 1.33% 1.30% (A) 1.48% (A) Ratio of net investment income (loss) to average net assets 0.19% (0.24%) (A) (0.67%) (A) Portfolio turnover rate 103% 81% 103%
INTERNATIONAL SMALL CAP TRUST ----------------------------------------------------------- SERIES I ----------------------------------------------------------- YEARS ENDED DECEMBER 31, ----------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 -------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.41 $ 11.30 $ 16.40 $ 28.16 $ 15.28 Income from investment operations: Net investment income (loss) 0.08 (0.04) - # (0.15) (0.07) Net realized and unrealized gain (loss) on investments and foreign currency transactions 5.07 (1.85) (5.10) (6.33) 13.00 -------- -------- -------- -------- -------- Total from investment operations 5.15 (1.89) (5.10) (6.48) 12.93 -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income - - - - (0.05) Distributions from capital gains - - - (5.28) - -------- -------- -------- -------- -------- Total distributions - - - (5.28) (0.05) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 14.56 $ 9.41 $ 11.30 $ 16.40 $ 28.16 ======== ======== ======== ======== ======== TOTAL RETURN (B) 54.73% (16.73%) (31.10%) (29.16%) 84.92% Net assets, end of period (000's) $245,603 $100,006 $146,451 $257,406 $239,961 Ratio of expenses to average net assets 1.32% 1.57% 1.60% 1.54% 1.37% Ratio of expenses to average net assets after expense reductions 1.32% 1.57% 1.60% 1.54% 1.37% Ratio of net investment income (loss) to average net assets 0.66% (0.40%) (0.01%) (0.67%) (0.41%) Portfolio turnover rate 140% 501% 721% 529% 309% INTERNATIONAL SMALL CAP TRUST -------------------------------------------------- SERIES II SERIES III ------------------------------ ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.41 $ 11.35 $ 12.69 Income from investment operations: Net investment income (loss) 0.05 (0.07) (0.01) Net realized and unrealized gain (loss) on investments and foreign currency transactions 5.08 (1.87) 1.88 ------- ------------ ------------ Total from investment operations 5.13 (1.94) 1.87 ------- ------------ ------------ Less distributions: Dividends from net investment income - - - Distributions from capital gains - - - ------- ------------ ------------ Total distributions - - - ------- ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 14.54 $ 9.41 $ 14.56 ======= ============ ============ TOTAL RETURN (B) 54.52% (17.09%) + 14.74% + Net assets, end of period (000's) $73,655 $ 4,848 $ 9 Ratio of expenses to average net assets 1.52% 1.77% (A) 15.64% (A) Ratio of expenses to average net assets after expense reductions 1.52% 1.77% (A) 1.59% (A) Ratio of net investment income (loss) to average net assets 0.41% (0.73%) (A) (0.19%) (A) Portfolio turnover rate 140% 501% 140%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 69 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
INTERNATIONAL VALUE TRUST ------------------------------------------------------------ SERIES I ------------------------------------------------------------ YEARS ENDED DECEMBER 31, 05/01/1999* ------------------------------------------------ TO 2003+++ 2002+++ 2001+++ 2000+++ 12/31/1999 --------- ---------- ---------- --------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.60 $ 10.54 $ 12.06 $ 12.98 $ 12.50 Income from investment operations: Net investment income (loss) 0.21 0.14 0.14 0.20 0.08 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.60 (2.01) (1.34) (1.04) 0.40 --------- ---------- ---------- --------- --------- Total from investment operations 3.81 (1.87) (1.20) (0.84) 0.48 --------- ---------- ---------- --------- --------- Less Distributions Dividends from net investment income (0.08) (0.07) (0.12) (0.05) - Distributions from capital gains - - (0.20) (0.03) - ---------- ---------- ---------- --------- --------- Total Distributions (0.08) (0.07) (0.32) (0.08) - --------- ---------- ---------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 12.33 $ 8.60 $ 10.54 $ 12.06 $ 12.98 ========= ========== ========== ========= ========= TOTAL RETURN (B) 44.86% (17.84%) (9.97%) (6.46%) 3.84% + Net assets, end of period (000's) $ 267,454 $ 228,882 $ 208,230 $ 158,511 $ 100,970 Ratio of expenses to average net assets 1.13% 1.12% 1.15% 1.18% 1.23% (A) Ratio of expenses to average net assets after expense reductions 1.12% 1.12% 1.15% 1.18% 1.23% (A) Ratio of net investment income (loss) to average net assets 2.18% 1.45% 1.32% 1.63% 1.27% (A) Portfolio turnover rate 51% 26% 33% 41% 4% INTERNATIONAL VALUE TRUST --------------------------------------------------- SERIES II SERIES III -------------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.60 $ 10.31 $ 10.79 Income from investment operations: Net investment income (loss) 0.18 0.01 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.60 (1.65) 1.53 ------------ ------------ ------------ Total from investment operations 3.78 (1.64) 1.54 ------------ ------------ ------------ Less Distributions Dividends from net investment income (0.09) (0.07) - Distributions from capital gains - - - ------------ ------------ ------------ Total Distributions (0.09) (0.07) - ------------ ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 12.29 $ 8.60 $ 12.33 ============ ============ ============ TOTAL RETURN (B) 44.52% (16.00%) + 14.27% + Net assets, end of period (000's) $ 138,365 $ 50,353 $ 1 Ratio of expenses to average net assets 1.33% 1.32% (A) 1.48% (A) Ratio of expenses to average net assets after expense reductions 1.32% 1.32% (A) 1.47% (A) Ratio of net investment income (loss) to average net assets 1.78% 0.09% (A) 0.28% (A) Portfolio turnover rate 51% 26% 51%
QUANTITATIVE MID CAP TRUST ---------------------------------------------------------------------- SERIES I SERIES II ----------------------------------------- --------------------------- YEARS ENDED DECEMBER 31, 4/30/2001* YEAR ENDED 1/28/2002* ------------------------ TO DECEMBER 31, TO 2003+++ 2002+++ 12/31/2001+++ 2003+++ 12/31/2002+++ --------- -------- ------------- ------------ ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.89 $ 10.20 $ 12.50 $ 7.88 $ 10.03 Income from investment operations: Net investment income (loss) (0.01) (0.01) - # (0.03) (0.02) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.05 (2.30) (2.30) 3.05 (2.13) --------- -------- -------- ------- -------- Total from investment operations 3.04 (2.31) (2.30) 3.02 (2.15) --------- -------- -------- ------- -------- NET ASSET VALUE, END OF PERIOD $ 10.93 $ 7.89 $ 10.20 $ 10.90 $ 7.88 ========= ======== ======== ======= ======== TOTAL RETURN 38.53% (22.65%) (18.40%) + 38.32% (21.44%) + Net assets, end of period (000's) $ 110,382 $ 78,053 $ 99,546 $ 7,286 $ 2,208 Ratio of expenses to average net assets 0.90% 0.90% 0.90% (A) 1.10% 1.10% (A) Ratio of net investment Income (loss) to average net assets (0.10%) (0.07%) (0.07%) (A) (0.30%) (0.31%) (A) Portfolio turnover rate 107% 273% 320% 107% 273%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized (B) The total return for the year ended 2003 for Series I and Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 70 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
MID CAP CORE TRUST ---------------------------------------------- SERIES I SERIES II SERIES III ------------- ------------- ------------- 5/05/2003* 5/05/2003* 9/05/2003* TO TO TO 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.50 $ 14.47 Income from investment operations: Net investment income (loss) (0.01) (0.03) 0.04 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.83 2.83 0.81 ---------- ---------- ---------- Total from investment operations 2.82 2.80 0.85 ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 15.32 $ 15.30 $ 15.32 ========== ========== ========== TOTAL RETURN 22.56% + 22.40% + 5.87% + Net assets, end of period (000's) $ 19,539 $ 29,798 - ## Ratio of expenses to average net assets 1.21% (A) 1.41% (A) 1.56% (A) Ratio of net investment income (loss) to average net assets (0.08%) (A) (0.27%) (A) 0.76% (A) Portfolio turnover rate 22% 22% 22%
GLOBAL EQUITY TRUST ---------------------------------------------------------------- SERIES I ---------------------------------------------------------------- YEARS ENDED DECEMBER 31, ---------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ---------- ---------- ---------- ---------- ---------- Net asset value, beginning of period $ 10.39 $ 13.00 $ 18.48 $ 18.79 $ 20.38 Income from investment operations: Net investment income (loss) 0.10 0.08 0.12 0.25 0.23 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.72 (2.54) (2.78) 1.78 0.38 ---------- ------- ---------- ---------- ---------- Total from investment operations 2.82 (2.46) (2.66) 2.03 0.61 ---------- ------- ---------- ---------- ---------- Less distributions: Dividends from net investment income (0.10) (0.15) (0.40) (0.35) (0.13) Distributions from capital gains - - (2.42) (1.99) (2.07) ---------- -------- ---------- ---------- ---------- Total distributions (0.10) (0.15) (2.82) (2.34) (2.20) ---------- -------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 13.11 $ 10.39 $ 13.00 $ 18.48 $ 18.79 ========== ========== ========== ========== ========== TOTAL RETURN (B) 27.46% (19.11%) (16.09%) 12.19% 3.66% Net assets, end of period (000's) $ 363,134 $ 347,619 $ 528,027 $ 725,419 $ 837,728 Ratio of expenses to average net assets 1.05% 1.04% 1.01% 1.02% 1.06% Ratio of expenses to average net assets after expense reductions 1.05% 1.04% 1.01% 1.02% 1.06% Ratio of net investment income (loss) to average net assets 0.93% 0.72% 0.81% 1.44% 1.14% Portfolio turnover rate 149% 92% 156% 43% 43% GLOBAL EQUITY TRUST ---------------------------------------------- SERIES II SERIES III ----------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- Net asset value, beginning of period $ 10.39 $ 12.72 $ 12.02 Income from investment operations: Net investment income (loss) 0.08 0.05 0.06 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.71 (2.23) 1.03 ------------ ---------- ---------- Total from investment operations 2.79 (2.18) 1.09 ------------ ---------- ---------- Less distributions: Dividends from net investment income (0.11) (0.15) - Distributions from capital gains - - - ------------ ---------- ---------- Total distributions (0.11) (0.15) - ------------ ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 13.07 $ 10.39 $ 13.11 ============ ========== ========== TOTAL RETURN (B) 27.23% (17.33%) + 9.07% + Net assets, end of period (000's) $ 19,672 $ 8,503 - ## Ratio of expenses to average net assets 1.25% 1.24% (A) 345.59% (A) Ratio of expenses to average net assets after expense reductions 1.25% 1.24% (A) 1.40% (A) Ratio of net investment income (loss) to average net assets 0.68% 0.55% (A) 1.38% (A) Portfolio turnover rate 149% 92% 149%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. ## Amount is less than $1,000 + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 71 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
STRATEGIC GROWTH TRUST -------------------------------------- SERIES I -------------------------------------- YEARS ENDED DECEMBER 31, 4/30/2001* ------------------------ TO 2003+++ 2002+++ 12/31/2001+++ --------- --------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.93 $ 11.02 $ 12.50 Income from investment operations: Net investment income (loss) (0.01) (0.02) (0.01) Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.14 (3.07) (1.47) -------- -------- ---------- Total from investment operations 2.13 (3.09) (1.48) -------- -------- ---------- NET ASSET VALUE, END OF PERIOD $ 10.06 $ 7.93 $ 11.02 ======== ======== ========== TOTAL RETURN (B) 26.86% (28.04%) (11.84%) + Net assets, end of period (000's) $175,020 $132,098 $ 91,393 Ratio of expenses to average net assets 0.99% 1.01% 1.10% (A) Ratio of expenses to average net assets after expense reductions 0.99% 1.01% 1.10% (A) Ratio of net investment income (loss) to average net assets (0.09%) (0.22%) (0.19%) (A) Portfolio turnover rate 77% 91% 107% STRATEGIC GROWTH TRUST ------------------------------------------- SERIES II SERIES III --------------------------- -------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.93 $ 10.58 $ 9.64 Income from investment operations: Net investment income (loss) (0.03) (0.02) (0.01) Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.14 (2.63) 0.43 ------- --------- ---------- Total from investment operations 2.11 (2.65) 0.42 ------- --------- ---------- NET ASSET VALUE, END OF PERIOD $ 10.04 $ 7.93 $ 10.06 ======= ========= ========== TOTAL RETURN (B) 26.61% (25.05%) + 4.36% + Net assets, end of period (000's) $86,609 $ 25,425 $ 2 Ratio of expenses to average net assets 1.19% 1.21% (A) 52.48% (A) Ratio of expenses to average net assets after expense reductions 1.19% 1.21% (A) 1.34% (A) Ratio of net investment income (loss) to average net assets (0.29%) (0.23%) (A) (0.18%) (A) Portfolio turnover rate 77% 91% 77%
CAPITAL APPRECIATION TRUST --------------------------------------------------- SERIES I --------------------------------------------------- YEARS ENDED DECEMBER 31, 11/1/2000* ----------------------------------- TO 2003+++ 2002+++ 2001+++ 12/31/2000+++ -------- -------- ---------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.21 $ 8.95 $ 10.97 $ 12.50 Income from investment operations: Net investment income (loss) (0.01) (0.01) (0.02) - # Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.84 (2.73) (2.00) (1.53) -------- -------- ---------- -------- Total from investment operations 1.83 (2.74) (2.02) (1.53) -------- -------- ---------- -------- NET ASSET VALUE, END OF PERIOD $8.04 $ 6.21 $ 8.95 $ 10.97 ======== ======== ========== ======== TOTAL RETURN (C) 29.47% (30.61%) (18.41%) (12.24%) + Net assets, end of period (000's) $120,859 $100,415 $ 40,202 $ 5,280 Ratio of expenses to average net assets 0.99% 1.05% 1.20% 1.60% (A) Ratio of expenses to average net assets after expense reductions 0.99% 1.05% 1.20% 1.40% (A) Ratio of net investment income (loss) to average net assets (0.13%) (0.14%) (0.22%) (0.21%) (A) Portfolio turnover rate 71% 67% 102% 143% CAPITAL APPRECIATION TRUST --------------------------------------------- SERIES II SERIES III -------------------------- -------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ -------------- -------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.20 $ 8.73 $ 7.62 Income from investment operations: Net investment income (loss) (0.03) (0.02) (0.01) Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.85 (2.51) 0.43 ----------- ---------- ---------- Total from investment operations 1.82 (2.53) 0.42 ----------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 8.02 $ 6.20 $ 8.04 =========== ========== ========== TOTAL RETURN (C) 29.35% (28.98%) + 5.51% + Net assets, end of period (000's) $ 72,208 $ 22,698 $ 2 Ratio of expenses to average net assets 1.19% 1.25% (A) 1.34% (A) Ratio of expenses to average net assets after expense reductions 1.19% 1.25% (A) 1.34% (A) Ratio of net investment income (loss) to average net assets (0.35%) (0.27%) (A) (0.38%) (A) Portfolio turnover rate 71% 67% 71%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the period ended December 31, 2000 for Series I would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 72 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
QUANTITATIVE ALL CAP TRUST ---------------------------------------------- SERIES I SERIES II SERIES III ------------- ------------- ------------- 5/05/2003* 5/05/2003* 9/05/2003* TO TO TO 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.50 $ 14.08 Income from investment operations: Net investment income (loss) 0.02 - # 0.06 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.04 3.05 1.41 ---------- ---------- ---------- Total from investment operations 3.06 3.05 1.47 ---------- ---------- ---------- Less distributions: Dividends from net investment income (0.51) (0.50) (0.50) ---------- ---------- ---------- Total distributions (0.51) (0.50) (0.50) ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 15.05 $ 15.05 $ 15.05 ========== ========== ========== TOTAL RETURN (B) 24.49% + 24.38% + 10.42% + Net assets, end of period (000's) $ 2,141 $ 2,542 - ## Ratio of expenses to average net assets 2.59% (A) 2.81% (A) 347.32% (A) Ratio of expenses to average net assets after expense reductions 1.30% (A) 1.50% (A) 1.65% (A) Ratio of net investment income (loss) to average net assets 0.18% (A) (0.02%) (A) 1.30% (A) Portfolio turnover rate 96% 96% 96%
ALL CAP CORE TRUST (FORMERLY, GROWTH TRUST) ----------------------------------------------------------------- SERIES I ----------------------------------------------------------------- YEARS ENDED DECEMBER 31, ----------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ---------- ---------- ---------- ---------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.43 $ 13.95 $ 17.74 $ 26.88 $ 20.50 Income from investment operations: Net investment income (loss) 0.06 (0.02) (0.06) (0.06) (0.04) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.23 (3.50) (3.73) (6.47) 7.46 ---------- ---------- ---------- ---------- --------- Total from investment operations 3.29 (3.52) (3.79) (6.53) 7.42 ---------- ---------- ---------- ---------- --------- Less distributions: Dividends from net investment income - - - - (0.05) Distribution from capital gains - - - (2.61) (0.99) ---------- ---------- ---------- ---------- --------- Total distributions - - - (2.61) (1.04) ---------- ---------- ---------- ---------- --------- NET ASSET VALUE, END OF PERIOD $ 13.72 $ 10.43 $ 13.95 $ 17.74 $ 26.88 ========== ========== ========== ========== ========= TOTAL RETURN 31.54% (25.23%) (21.36%) (27.29%) 37.20% Net assets, end of period (000's) $ 264,170 $ 243,484 $ 494,523 $ 637,194 $ 642,948 Ratio of expenses to average net assets 0.93% 0.91% 0.91% 0.90% 0.90% Ratio of net investment income (loss) to average net assets 0.49% (0.20%) (0.41%) (0.26%) (0.18%) Portfolio turnover rate 183% 153% 121% 147% 156% ALL CAP CORE TRUST (FORMERLY, GROWTH TRUST) ---------------------------- SERIES II ---------------------------- YEAR ENDED 1/28/2002* DECEMBER 31, TO 2003+++ 12/31/2002+++ ------------ -------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.43 $ 13.64 Income from investment operations: Net investment income (loss) 0.03 (0.02) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.23 (3.19) ----------- ---------- Total from investment operations 3.26 (3.21) ----------- ---------- Less distributions: Dividends from net investment income - - Distribution from capital gains - - ----------- ---------- Total distributions - - ----------- ---------- NET ASSET VALUE, END OF PERIOD $ 13.69 $ 10.43 =========== ========== TOTAL RETURN 31.26% (23.53%)+ Net assets, end of period (000's) $ 10,246 $ 4,296 Ratio of expenses to average net assets 1.13% 1.11% (A) Ratio of net investment income (loss) to average net assets 0.29% (0.19%) (A) Portfolio turnover rate 183% 153%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. ## Amount is less than $1,000 + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series I, Series II and Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 73 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
LARGE CAP GROWTH TRUST ----------------------------------------------------------------- SERIES I ----------------------------------------------------------------- YEARS ENDED DECEMBER 31, ----------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ---------- ---------- ---------- ---------- --------- Net asset value, beginning of period $ 7.61 $ 9.89 $ 12.58 $ 17.23 $ 15.26 Income from investment operations: Net investment income (loss) 0.03 0.02 0.03 (0.01) 0.06 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.89 (2.27) (2.25) (2.03) 3.52 ---------- ---------- ---------- ---------- --------- Total from investment operations 1.92 (2.25) (2.22) (2.04) 3.58 ---------- ---------- ---------- ---------- --------- Less distributions: Dividends from net investment income (0.02) (0.03) - (0.04) (0.23) Distributions from capital gains - - (0.47) (2.57) (1.38) ---------- ---------- ---------- ---------- --------- Total distributions (0.02) (0.03) (0.47) (2.61) (1.61) ---------- ---------- ---------- ---------- --------- NET ASSET VALUE, END OF PERIOD $ 9.51 $ 7.61 $ 9.89 $ 12.58 $ 17.23 ========== ========== ========== ========== ========= TOTAL RETURN 25.33% (22.83%) (17.81%) (14.24%) 25.28% Net assets, end of period (000's) $ 414,672 $ 370,765 $ 496,049 $ 541,693 $ 402,585 Ratio of expenses to average net assets 0.97% 0.98% 0.95% 0.94% 0.94% Ratio of net investment income (loss) to average net assets 0.31% 0.26% 0.30% (0.01%) 0.45% Portfolio turnover rate 62% 92% 123% 92% 164% LARGE CAP GROWTH TRUST --------------------------- SERIES II --------------------------- YEAR ENDED 1/28/2002* DECEMBER 31, TO 2003+++ 12/31/2002+++ ------------ ------------- Net asset value, beginning of period $ 7.60 $ 9.79 Income from investment operations: Net investment income (loss) 0.01 0.02 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.90 (2.18) --------- ---------- Total from investment operations 1.91 (2.16) --------- ---------- Less distributions: Dividends from net investment income (0.03) (0.03) Distributions from capital gains - - --------- ---------- Total distributions (0.03) (0.03) --------- ---------- NET ASSET VALUE, END OF PERIOD $ 9.48 $ 7.60 ========= ========== TOTAL RETURN 25.24% (22.15%)+ Net assets, end of period (000's) $85,866 $ 31,496 Ratio of expenses to average net assets 1.17% 1.18% (A) Ratio of net investment income (loss) to average net assets 0.12% 0.27% (A) Portfolio turnover rate 62% 92%
QUANTITATIVE EQUITY TRUST ----------------------------------------------------------------- SERIES I ----------------------------------------------------------------- YEARS ENDED DECEMBER 31, 2003 ----------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ---------- ---------- ---------- ---------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.39 $ 17.20 $ 26.26 $ 28.16 $ 25.22 Income from investment operations: Net investment income (loss) 0.11 0.07 0.04 0.08 0.10 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.79 (4.84) (5.76) 1.81 5.26 ---------- ---------- ---------- ---------- --------- Total from investment operations 2.90 (4.77) (5.72) 1.89 5.36 ---------- ---------- ---------- ---------- --------- Less distributions: Dividends from net investment income (0.09) (0.04) (0.06) (0.12) (0.18) Distributions from capital gains - - (3.28) (3.67) (2.24) ---------- ---------- ---------- ---------- --------- Total distributions (0.09) (0.04) (3.34) (3.79) (2.42) ---------- ---------- ---------- ---------- --------- NET ASSET VALUE, END OF PERIOD $ 15.20 $ 12.39 $ 17.20 $ 26.26 $ 28.16 ========== ========== ========== ========== ========= TOTAL RETURN 23.55% (27.78%) (22.95%) 6.30% 22.30% Net assets, end of period (000's) $ 255,587 $ 248,729 $ 448,002 $ 612,813 $ 431,909 Ratio of expenses to average net assets 0.82% 0.82% 0.76% 0.75% 0.76% Ratio of net investment income (loss) to average net assets 0.83% 0.49% 0.21% 0.28% 0.57% Portfolio turnover rate 126% 152% 111% 120% 159% QUANTITATIVE EQUITY TRUST ------------------------------------------- SERIES II SERIES III --------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.38 $ 16.85 $ 13.96 Income from investment operations: Net investment income (loss) 0.09 0.07 0.07 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.78 (4.50) 1.17 ---------- ---------- ---------- Total from investment operations 2.87 (4.43) 1.24 ---------- ---------- ---------- Less distributions: Dividends from net investment income (0.10) (0.04) - Distributions from capital gains - - - ---------- ---------- ---------- Total distributions (0.10) (0.04) - ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 15.15 $ 12.38 $ 15.20 ========== ========== ========== TOTAL RETURN 23.40% (26.34%) + 8.88% + Net assets, end of period (000's) $ 19,160 $ 6,790 - ## Ratio of expenses to average net assets 1.02% 1.02% (A) 1.17% (A) Ratio of net investment income (loss) to average net assets 0.67% 0.57% (A) 1.53% (A) Portfolio turnover rate 126% 152% 126%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations ## Amount is less than $1,000 + Not Annualized (A) Annualized The accompanying notes are an integral part of the financial statements. 74 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
BLUE CHIP GROWTH TRUST ----------------------------------------------------------------- SERIES I ----------------------------------------------------------------- YEARS ENDED DECEMBER 31, ----------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ---------- ---------- ---------- ---------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 11.99 $ 15.83 $ 20.13 $ 21.64 $ 18.92 Income from investment operations: Net investment income (loss) 0.02 0.01 - # (0.02) 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.48 (3.85) (2.97) (0.50) 3.58 ---------- ---------- ---------- ---------- ------------ Total from investment operations 3.50 (3.84) (2.97) (0.52) 3.59 ---------- ---------- ---------- ---------- ------------ Less distributions: Dividends from net investment income (0.01) - - (0.01) (0.05) Distributions from capital gains - - (1.33) (0.98) (0.82) ---------- ---------- ---------- ---------- ------------ Total distributions (0.01) - (1.33) (0.99) (0.87) ---------- ---------- ---------- ---------- ------------ NET ASSET VALUE, END OF PERIOD $ 15.48 $ 11.99 $ 15.83 $ 20.13 $ 21.64 ========== ========== ========== ========== ============ TOTAL RETURN (B) 29.17% (24.26%) (14.61%) (2.76%) 19.43% Net assets, end of period (000's) $1,290,525 $1,092,775 $1,633,194 $1,999,039 $ 1,734,233 Ratio of expenses to average net assets 0.92% 0.93% 0.93% 0.92% 0.94% Ratio of expenses to average net assets after expense reductions 0.90% 0.91% 0.92% 0.91% 0.94% Ratio of net investment income (loss) to average net assets 0.15% 0.05% 0.00% (0.07%) 0.06% Portfolio turnover rate 35% 39% 48% 48% 42% BLUE CHIP GROWTH TRUST ------------------------------------------ SERIES II SERIES III -------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.98 $ 15.53 $ 14.36 Income from investment operations: Net investment income (loss) - # - # 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.47 (3.55) 1.11 ---------- --------- --------- Total from investment operations 3.47 (3.55) 1.12 ---------- --------- --------- Less distributions: Dividends from net investment income (0.02) - - Distributions from capital gains - - - ---------- --------- --------- Total distributions (0.02) - - ---------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 15.43 $ 11.98 $ 15.48 ========== ========= ========= TOTAL RETURN (B) 29.02% (22.86%) + 7.80% + Net assets, end of period (000's) $ 204,653 $ 61,375 $ 6 Ratio of expenses to average net assets 1.12% 1.13% (A) 19.68% (A) Ratio of expenses to average net assets after expense reductions 1.10% 1.11% (A) 1.25% (A) Ratio of net investment income (loss) to average net assets (0.03%) (0.01%) (A) 0.12% (A) Portfolio turnover rate 35% 39% 35%
U.S. LARGE CAP TRUST (FORMERLY, U.S. LARGE CAP VALUE TRUST) ---------------------------------------------------------------- SERIES I ---------------------------------------------------------------- YEARS ENDED DECEMBER 31, 05/01/1999* -------------------------------------------------- TO 2003+++ 2002+++ 2001+++ 2000+++ 12/31/1999 ---------- ---------- ---------- ---------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 9.41 $ 12.61 $ 13.09 $ 12.84 $ 12.50 Income from investment operations: Net investment income (loss) 0.05 0.05 0.04 0.07 0.04 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.42 (3.22) (0.38) 0.29 0.30 ---------- ---------- ---------- ---------- ------------ Total from investment operations 3.47 (3.17) (0.34) 0.36 0.34 ---------- ---------- ---------- ---------- ------------ Less distributions: Dividends from net investment income (0.04) (0.03) (0.05) (0.03) - Distributions from capital gains - - (0.09) (0.08) - ---------- ---------- ---------- ---------- ------------ Total distributions (0.04) (0.03) (0.14) (0.11) - ---------- ---------- ---------- ---------- ------------ NET ASSET VALUE, END OF PERIOD $ 12.84 $ 9.41 $ 12.61 $ 13.09 $ 12.84 ========== ========== ========== ========== ============ TOTAL RETURN 37.06% (25.18%) (2.54%) 2.78% 2.72% + Net assets, end of period (000's) $ 413,803 $ 382,248 $ 518,621 $ 435,395 $ 210,725 Ratio of expenses to average net assets 0.93% 0.94% 0.93% 0.93% 0.94% (A) Ratio of net investment income (loss) to average net assets 0.43% 0.43% 0.32% 0.53% 0.64% (A) Portfolio turnover rate 34% 42% 38% 31% 30% U.S. LARGE CAP TRUST (FORMERLY, U.S. LARGE CAP VALUE TRUST) -------------------------------------------- SERIES II SERIES III -------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.41 $ 12.35 $ 11.72 Income from investment operations: Net investment income (loss) 0.02 0.03 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.41 (2.94) 1.11 ---------- ----------- ---------- Total from investment operations 3.43 (2.91) 1.12 ---------- ----------- ---------- Less distributions: Dividends from net investment income (0.05) (0.03) - Distributions from capital gains - - - ---------- ----------- ---------- Total distributions (0.05) (0.03) - ---------- ----------- ---------- NET ASSET VALUE, END OF PERIOD $ 12.79 $ 9.41 $ 12.84 ========== =========== ========== TOTAL RETURN 36.68% (23.61%) + 9.56% + Net assets, end of period (000's) $ 143,409 $ 59,287 $ 1 Ratio of expenses to average net assets 1.13% 1.14% (A) 1.28% (A) Ratio of net investment income (loss) to average net assets 0.21% 0.35% (A) 0.34% (A) Portfolio turnover rate 34% 42% 34%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized (B) The total return for the years ended 2003, 2002, 2001, 2000 and 1999 for Series I, for the year ended 2003 and the period ended December 31, 2002 for Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 75 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
STRATEGIC VALUE TRUST (FORMERLY, CAPITAL OPPORTUNITIES TRUST) ---------------------------------------- SERIES I ---------------------------------------- 4/31/2001* YEARS ENDED DECEMBER 31, TO 2003+++ 2002+++ 12/31/2001+++ ---------- ---------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.79 $ 10.70 $ 12.50 Income from investment operations: Net investment income (loss) 0.06 - # (0.02) Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.18 (2.91) (1.78) ---------- ---------- ---------- Total from investment operations 2.24 (2.91) (1.80) ---------- ---------- ---------- Less distributions: Dividends from net investment income - # - - ---------- ---------- ---------- Total distributions - # - - ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 10.03 $ 7.79 $ 10.70 ========== ========== ========== TOTAL RETURN (B) 28.78% (27.20%) (14.4%) + Net assets, end of period (000's) $ 95,602 $ 34,153 $ 33,428 Ratio of expenses to average net assets 1.04% 1.14% 1.46% (A) Ratio of expenses to average net assets after expense reductions 1.04% 1.14% 1.40% (A) Ratio of net investment income (loss) to average net assets 0.69% 0.04% (0.27%) (A) Portfolio turnover rate 62% 109% 86% STRATEGIC VALUE TRUST (FORMERLY, CAPITAL OPPORTUNITIES TRUST) --------------------------------------- SERIES II SERIES III -------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.78 $ 10.27 $ 9.42 Income from investment operations: Net investment income (loss) 0.05 - # 0.03 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.18 (2.49) 0.58 ---------- --------- ---------- Total from investment operations 2.23 (2.49) 0.61 ---------- --------- ---------- Less distributions: Dividends from net investment income (0.01) - - ---------- --------- ---------- Total distributions (0.01) - - ---------- --------- ---------- NET ASSET VALUE, END OF PERIOD $ 10.00 $ 7.78 $ 10.03 ========== ========= ========== TOTAL RETURN (B) 28.68% (24.25%) + 6.48% + Net assets, end of period (000's) $ 47,466 $ 5,904 $ 1 Ratio of expenses to average net assets 1.24% 1.34% (A) 1.39% (A) Ratio of expenses to average net assets after expense reductions 1.24% 1.34% (A) 1.39% (A) Ratio of net investment income (loss) to average net assets 0.55% 0.04% (A) 0.93% (A) Portfolio turnover rate 62% 109% 62%
LARGE CAP VALUE TRUST ------------------------------------ SERIES I SERIES II ------------- ------------- 5/05/2003* 5/05/2003* TO TO 12/31/2003+++ 12/31/2003+++ ------------- ------------- Net asset value, beginning of period $ 12.50 $ 12.50 Income from investment operations: Net investment income (loss) - # (0.03) Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.46 3.47 ---------- ---------- Total from investment operations 3.46 3.44 ---------- ---------- Less distributions: Dividends from net investment income (0.30) (0.30) ---------- ---------- Total distributions (0.30) (0.30) ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 15.66 $ 15.64 ========== ========== TOTAL RETURN (C) 27.65% + 27.49% + Net assets, end of period (000's) $ 6,203 $ 7,977 Ratio of expenses to average net assets 2.86% (A) 3.06% (A) Ratio of expenses to average net assets after expense reductions 1.40% (A) 1.60% (A) Ratio of net investment income (loss) to average net assets (0.02%) (A) (0.27%) (A) Portfolio turnover rate 105% 105%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2001 for Series I would have been lower, had operating expenses not been reduced. (C) The total return for the period ended December 31, 2003 for Series I and Series II would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 76 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
UTILITIES TRUST ----------------------------------------------------------------------------------- SERIES I SERIES II SERIES III -------------------------------------- -------------------------- ------------- YEARS ENDED DECEMBER 31, 4/30/2001* YEAR ENDED 1/28/2002* 9/05/2003* ------------------------ TO DECEMBER 31, TO TO 2003+++ 2002+++ 12/31/2001+++ 2003+++ 12/31/2002+++ 12/31/2003+++ ----------- ------------ ------------- ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.11 $ 9.29 $ 12.50 $ 7.10 $ 8.77 $ 8.48 Income from investment operations: Net investment income (loss) 0.13 0.15 0.07 0.11 0.12 0.07 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.29 (2.33) (3.23) 2.29 (1.79) 0.88 ------- ------- ------- -------- --------- -------- Total from investment operations 2.42 (2.18) (3.16) 2.40 (1.67) 0.95 ------- ------- ------- -------- --------- -------- Less distributions: Dividends from net investment income (0.10) - # (0.05) (0.11) - # - ------- ------- ------- -------- --------- -------- Total distributions (0.10) - # (0.05) (0.11) - # - ------- ------- ------- -------- --------- -------- NET ASSET VALUE, END OF PERIOD $ 9.43 $ 7.11 $ 9.29 $ 9.39 $ 7.10 $ 9.43 ======= ======= ======= ======== ========= ======== TOTAL RETURN (B) 34.53% (23.46%) (25.3%) + 34.25% (19.04%) + 11.20% + Net assets, end of period (000's) $34,440 $20,607 $18,260 $ 20,494 $ 6,540 - ## Ratio of expenses to average net assets 1.31% 1.28% 1.51% (A) 1.51% 1.48% (A) 347.24% (A) Ratio of expenses to average net assets after expense reductions 1.31% 1.28% 1.40% (A) 1.51% 1.48% (A) 1.66% (A) Ratio of net investment income (loss) to average net assets 1.64% 1.99% 1.07% (A) 1.36% 1.83% (A) 2.39% (A) Portfolio turnover rate 131% 89% 81% 131% 89% 131%
REAL ESTATE SECURITIES TRUST -------------------------------------------------------------------- SERIES I -------------------------------------------------------------------- YEARS ENDED DECEMBER 31, -------------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ----------- ------------ ------------ ------------ ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 15.44 $ 15.52 $ 15.57 $ 12.89 $ 14.76 Income from investment operations: Net investment income (loss) 0.69 0.83 0.75 0.67 0.78 Net realized and unrealized gain (loss) on investments and foreign currency transactions 5.20 (0.38) (0.30) 2.53 (1.94) -------- --------- --------- -------- -------- Total from investment operations 5.89 0.45 0.45 3.20 (1.16) -------- --------- --------- -------- -------- Less distributions: Dividends from net investment income (0.48) (0.53) (0.50) (0.52) (0.71) -------- --------- --------- -------- -------- Total distributions (0.48) (0.53) (0.50) (0.52) (0.71) -------- --------- --------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 20.85 $ 15.44 $ 15.52 $ 15.57 $ 12.89 ======== ========= ========= ======== ======== TOTAL RETURN (C) 39.15% 2.58% 3.15% 25.71% (8.00%) Net assets, end of period (000's) $447,860 $ 303,070 $ 220,919 $257,641 $196,756 Ratio of expenses to average net assets 0.80% 0.84% 0.83% 0.76% 0.77% Ratio of expenses to average net assets after expense reductions 0.80% 0.84% 0.83% 0.76% 0.77% Ratio of net investment income (loss) to average net assets 3.93% 5.28% 4.96% 4.89% 5.88% Portfolio turnover rate 30% 74% 116% 147% 201% REAL ESTATE SECURITIES TRUST --------------------------------------------- SERIES II SERIES III ---------------------------- -------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 15.43 $ 15.44 $ 18.87 Income from investment operations: Net investment income (loss) 0.60 0.85 0.12 Net realized and unrealized gain (loss) on investments and foreign currency transactions 5.25 (0.33) 1.86 -------- -------- -------- Total from investment operations 5.85 0.52 1.98 -------- -------- -------- Less distributions: Dividends from net investment income (0.49) (0.53) - -------- -------- -------- Total distributions (0.49) (0.53) - -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 20.79 $ 15.43 $ 20.85 ======== ======== ======== TOTAL RETURN (C) 38.93% 3.05% + 10.49% + Net assets, end of period (000's) $168,405 $ 48,749 $ 21 Ratio of expenses to average net assets 1.00% 1.04% (A) 11.07% (A) Ratio of expenses to average net assets after expense reductions 1.00% 1.04% (A) 1.15% (A) Ratio of net investment income (loss) to average net assets 3.33% 6.03% (A) 1.94% (A) Portfolio turnover rate 30% 74% 30%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. ## Amount is less than $1,000 + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2001 for Series I and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 77 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
SMALL CAP OPPORTUNITIES TRUST --------------------------------------------- SERIES I SERIES II SERIES III ------------ ------------- ------------- 5/05/2003* 5/05/2003* 9/5/2003* TO TO TO 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.50 $ 14.85 Income from investment operations: Net investment income (loss) 0.10 0.02 0.08 Net realized and unrealized gain (loss) on investments and foreign currency transactions 4.90 4.96 2.57 --------- --------- -------- Total from investment operations 5.00 4.98 2.65 --------- --------- -------- NET ASSET VALUE, END OF PERIOD $ 17.50 $ 17.48 $ 17.50 ========= ========= ======== TOTAL RETURN 40.00% + 39.84% + 17.85% + Net assets, end of period (000's) $ 35,587 $ 33,352 $ 1 Ratio of expenses to average net assets 1.23% (A) 1.43% (A) 1.58% (A) Ratio of net investment income (loss) to average net assets 0.33% (A) 0.23% (A) 1.49% (A) Portfolio turnover rate 17% 17% 17%
SMALL COMPANY VALUE TRUST ------------------------------------------------------------------------------------------ SERIES I SERIES II SERIES III ----------------------------------------------- -------------------------- ------------- YEARS ENDED DECEMBER 31, YEAR ENDED 1/28/2002* 9/5/2003 ----------------------------------------------- DECEMBER 31, TO TO 2003+++ 2002+++ 2001+++ 2000+++ 1999 2003+++ 12/31/2002+++ 12/31/2003+++ -------- -------- -------- -------- ------- ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.90 $ 13.80 $ 12.98 $ 12.27 $ 11.37 $ 12.89 $ 13.83 $ 15.97 Income from investment operations: Net investment income (loss) 0.04 0.08 0.09 0.04 0.02 0.01 0.13 0.02 Net realized and unrealized gain (loss) on investments and foreign currency transactions 4.28 (0.88) 0.76 0.69 0.89 4.29 (0.97) 1.15 -------- -------- -------- -------- ------- -------- ------- ------- Total from investment operations 4.32 (0.80) 0.85 0.73 0.91 4.30 (0.84) 1.17 -------- -------- -------- -------- ------- -------- ------- ------- Less distributions: Dividends from net investment income (0.06) (0.04) (0.03) (0.02) (0.01) (0.07) (0.04) - Distributions from capital gains (0.02) (0.06) - - - (0.02) (0.06) - -------- -------- -------- -------- ------- -------- ------- ------- Total distributions (0.08) (0.10) (0.03) (0.02) (0.01) (0.09) (0.10) - -------- -------- -------- -------- ------- -------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 17.14 $ 12.90 $ 13.80 $ 12.98 $ 12.27 $ 17.10 $ 12.89 $ 17.14 ======== ======== ======== ======== ======= ======== ======= ======= TOTAL RETURN (B) 33.66% (5.93%) 6.54% 5.93% 8.00% 33.56% (6.20%) + 7.33% + Net assets, end of period (000's) $385,926 $305,338 $213,046 $115,982 $89,167 $147,770 $50,843 - ## Ratio of expenses to average net assets 1.11% 1.12% 1.16% 1.24% 1.22% 1.31% 1.32% (A) 1.46% (A) Ratio of expenses to average net assets after expense reductions 1.11% 1.11% 1.15% 1.24% 1.22% 1.31% 1.31% (A) 1.46% (A) Ratio of net investment income (loss) to average net assets 0.26% 0.61% 0.72% 0.35% 0.15% 0.06% 1.12% (A) 0.39% (A) Portfolio turnover rate 14% 19% 119% 178% 142% 14% 19% 14%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized ## Amount is less than $1,000 (A) Annualized (B) The total return for the years ended 2002 and 2001 for Series I and for the period ended December 31, 2002 for Series II would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 78 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
SPECIAL VALUE TRUST ------------------------------------------------- SERIES I SERIES II SERIES III ------------- ------------- ------------- 5/05/2003* 5/05/2003* 9/05/2003+++ TO TO TO 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.50 $ 14.65 Income from investment operations: Net investment income (loss) (0.04) (0.06) 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.36 3.36 1.16 --------- -------- -------- Total from investment operations 3.32 3.30 1.17 --------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 15.82 $ 15.80 $ 15.82 ========= ======== ======== TOTAL RETURN (B) 26.56% + 26.40% + 7.99% + Net assets, end of period (000's) $ 10,896 $ 6,749 - ## Ratio of expenses to average net assets 1.64% (A) 1.84% (A) 208.58% (A) Ratio of expenses to average net assets after expense reductions 1.55% (A) 1.75% (A) 1.90% (A) Ratio of net investment income (loss) to average net assets (0.44%) (A) (0.68%) (A) 0.27% (A) Portfolio turnover rate 26% 26% 26%
MID CAP VALUE TRUST --------------------------------------------------------------------------------------- SERIES I SERIES II SERIES III ----------------------------------------- ---------------------------- -------------- YEARS ENDED DECEMBER 31, 4/30/2001* YEAR ENDED 1/28/2002* 9/05/2003* TO DECEMBER 31, TO TO 2003+++ 2002+++ 12/31/2001+++ 2003+++ 12/31/2002+++ 12/31/2003+++ ----------- ------------ -------------- ------------- ------------- -------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.74 $ 13.06 $ 12.50 $ 11.74 $ 12.63 $ 13.38 Income from investment operations: Net investment income (loss) 0.09 0.11 0.06 0.07 0.09 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.87 (1.43) 0.53 2.86 (0.98) 1.26 -------- -------- -------- -------- -------- -------- Total from investment operations 2.96 (1.32) 0.59 2.93 (0.89) 1.27 -------- -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income (0.05) - (0.03) (0.05) - - -------- -------- -------- -------- -------- -------- Total distributions (0.05) - (0.03) (0.05) - - -------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 14.65 $ 11.74 $ 13.06 $ 14.62 $ 11.74 $ 14.65 ======== ======== ======== ======== ======== ======== TOTAL RETURN (C) 25.36% (10.11%) 4.72% + 25.14% (7.05%) + 9.49% + Net assets, end of period (000's) $283,432 $269,345 $ 80,737 $171,216 $ 71,096 $ 2 Ratio of expenses to average net assets 0.99% 1.02% 1.15% (A) 1.19% 1.22% (A) 42.62% (A) Ratio of expenses to average net assets after expense reductions 0.99% 1.02% 1.15% (A) 1.19% 1.22% (A) 1.34% (A) Ratio of net investment income (loss) to average net assets 0.76% 0.92% 0.75% (A) 0.54% 0.83% (A) 0.14% (A) Portfolio turnover rate 34% 24% 23% 34% 24% 34%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations ## Amount is less than $1,000 + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series I, Series II and Series III would have been lower, had operating expenses not been reduced. (C) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 79 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
VALUE TRUST ------------------------------------------------------------------------------------- SERIES I SERIES II ------------------------------------------------------ --------------------------- YEAR ENDED 1/28/2002* YEARS ENDED DECEMBER 31, DECEMBER 31, TO -------- -------- --------- -------- -------- ------------ ------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 2003+++ 12/31/2002+++ -------- -------- --------- -------- -------- ------------ ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.49 $ 16.47 $ 16.48 $ 13.23 $ 14.06 $ 12.48 $ 16.26 Income from investment operations: Net investment income (loss) 0.10 0.14 0.15 0.14 0.20 0.06 0.12 Net realized and unrealized gain (loss) on investments and foreign currency transactions 4.67 (3.82) 0.40 3.11 (0.59) 4.68 (3.60) -------- -------- --------- -------- -------- -------- --------- Total from investment operations 4.77 (3.68) 0.55 3.25 (0.39) 4.74 (3.48) -------- -------- --------- -------- -------- -------- --------- Less distributions: Dividends from net investment income (0.17) (0.12) (0.11) - (0.20) (0.18) (0.12) Distributions from capital gains - (0.18) (0.45) - (0.24) - (0.18) -------- -------- --------- -------- -------- -------- --------- Total distributions (0.17) (0.30) (0.56) - (0.44) (0.18) (0.30) NET ASSET VALUE, END OF PERIOD $ 17.09 $ 12.49 $ 16.47 $ 16.48 $ 13.23 $ 17.04 $ 12.48 ======== ======== ========= ======== ======== ======== ========= TOTAL RETURN 38.76% (22.80%) 3.42% 24.57% (2.79%) 38.60% (21.87%) + Net assets, end of period (000's) $272,292 $238,370 $ 360,027 $189,245 $146,279 $ 28,744 $ 11,473 Ratio of expenses to average net assets 0.87% 0.86% 0.86% 0.86% 0.87% 1.07% 1.06% (A) Ratio of net investment income (loss) to average net assets 0.71% 0.94% 0.92% 1.05% 1.12% 0.44% 1.02% (A) Portfolio turnover rate 186% 52% 27% 65% 54% 186% 52%
ALL CAP VALUE TRUST ---------------------------------------------------------------------------------------- SERIES I SERIES II SERIES III ----------------------------------------- ---------------------------- ------------- YEARS ENDED DECEMBER 31, 4/30/2001* YEAR ENDED 1/28/2002* 9/05/2003* TO DECEMBER 31, TO TO 2003+++ 2002+++ 12/31/2001+++ 2003+++ 12/31/2002+++ 12/31/2003+++ ----------- ------------ ------------- ------------ ------------- -------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.10 $ 12.61 $ 12.50 $ 9.09 $ 12.56 $ 11.33 Income from investment operations: Net investment income (loss) 0.07 0.02 - # 0.05 - # 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.42 (3.53) 0.11 3.41 (3.47) 1.24 -------- -------- -------- -------- -------- ------- Total from investment operations 3.49 (3.51) 0.11 3.46 (3.47) 1.25 -------- -------- -------- -------- -------- ------- Less distributions: Dividends from net investment income (0.01) - # - # (0.01) - # - -------- -------- -------- -------- -------- ------- Total distributions (0.01) - # - # (0.01) - # - -------- -------- -------- -------- -------- ------- NET ASSET VALUE, END OF PERIOD $ 12.58 $ 9.10 $ 12.61 $ 12.54 $ 9.09 $ 12.58 ======== ======== ======== ======== ======== ======= TOTAL RETURN (B) 38.36% (27.83%) 0.90% + 38.16% (27.63%)+ 11.03% + Net assets, end of period (000's) $183,743 $ 32,237 $ 20,877 $101,429 $ 7,204 $ 4 Ratio of expenses to average net assets 0.98% 1.15% 1.42% (A) 1.18% 1.35% (A) 20.92% (A) Ratio of expenses to average net assets after expense reductions 0.98% 1.15% 1.42% (A) 1.18% 1.34% (A) 1.33% (A) Ratio of net investment income (loss) to average net assets 0.64% 0.15% 0.05% (A) 0.44% 0.04% (A) 0.32% (A) Portfolio turnover rate 52% 31% 194% 52% 31% 52%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 80 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
EQUITY INDEX TRUST ----------------------------------------------------- SERIES I ----------------------------------------------------- YEARS ENDED DECEMBER 31, ---------------------------------------- --------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ------- ------- -------- -------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.77 $ 14.00 $ 16.40 $ 18.13 $ 15.43 Income from investment operations: Net investment income (loss) 0.16 0.15 0.14 0.16 0.17 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.84 (3.24) (2.14) (1.84) 3.00 ------- ------- -------- -------- --------- Total from investment operations 3.00 (3.09) (2.00) (1.68) 3.17 ------- ------- -------- -------- --------- Less distributions: Dividends from net investment income (0.17) (0.14) (0.16) - (0.17) Distributions from capital gains - - (0.24) (0.05) (0.30) ------- ------- -------- -------- --------- Total distributions (0.17) (0.14) (0.40) (0.05) (0.47) ------- ------- -------- -------- --------- NET ASSET VALUE, END OF PERIOD $ 13.60 $ 10.77 $ 14.00 $ 16.40 $ 18.13 ======= ======= ======== ======== ========= TOTAL RETURN (B) 28.29% (22.30%) (12.26%) (9.29%) 20.58% Net assets, end of period (000's) $81,536 $73,082 $103,007 $114,154 $ 114,775 Ratio of expenses to average net assets 0.50% 0.41% 0.41% 0.40% 0.41% Ratio of expenses to average net assets after expense reductions 0.40% 0.40% 0.40% 0.40% 0.40% Ratio of net investment income (loss) to average net assets 1.38% 1.21% 0.97% 0.91% 1.17% Portfolio turnover rate 2% 4% 4% 8% 10%
FUNDAMENTAL VALUE TRUST --------------------------------------------------------------------------------------- SERIES I SERIES II SERIES III ---------------------------------------- --------------------------- ------------- 4/30/2001* YEAR ENDED 1/28/2002* 9/05/2003* YEARS ENDED DECEMBER 31, TO DECEMBER 31, TO TO 2003+++ 2002+++ 12/31/2001+++ 2003+++ 12/31/2002+++ 12/31/2003+++ ----------- ------------ ------------- ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.82 $ 11.73 $ 12.50 $ 9.82 $ 11.48 $ 11.28 Income from investment operations: Net investment income (loss) 0.08 0.07 0.03 0.06 0.07 0.02 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.84 (1.97) (0.80) 2.83 (1.72) 1.41 -------- -------- -------- -------- -------- -------- Total from investment operations 2.92 (1.90) (0.77) 2.89 (1.65) 1.43 -------- -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income (0.03) (0.01) - (0.03) (0.01) - -------- -------- -------- -------- -------- -------- Total distributions (0.03) (0.01) - (0.03) (0.01) - -------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 12.71 $ 9.82 $ 11.73 $ 12.68 $ 9.82 $ 12.71 ======== ======== ======== ======== ======== ======== TOTAL RETURN (C) 29.83% (16.20%) (6.16%) + 29.57% (14.46%) + 12.68% + Net assets, end of period (000's) $355,263 $269,250 $111,590 $203,168 $ 65,174 $ 9 Ratio of expenses to average net assets 0.97% 0.98% 1.07% (A) 1.17% 1.18% (A) 15.43% (A) Ratio of expenses to average net assets after expense reductions 0.97% 0.98% 1.07% (A) 1.17% 1.18% (A) 1.32% (A) Ratio of net investment income (loss) to average net assets 0.78% 0.71% 0.45% (A) 0.59% 0.75% (A) 0.55% (A) Portfolio turnover rate 12% 19% 16% 12% 19% 12%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized (A) Annualized (B) The total return for the years ended 2003, 2002, 2001, 2000 and 1999 for Series I would have been lower, had operating expenses not been reduced. (C) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 81 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
GROWTH & INCOME TRUST -------------------------------------------------------------- SERIES I -------------------------------------------------------------- YEARS ENDED DECEMBER 31, -------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 17.40 $ 23.91 $ 28.54 $ 32.67 $ 28.43 Income from investment operations: Net investment income (loss) 0.17 0.16 0.12 0.10 0.17 Net realized and unrealized gain (loss) on investments and foreign currency transactions 4.41 (5.80) (3.32) (2.21) 5.12 ---------- ---------- ---------- ---------- ---------- Total from investment operations 4.58 (5.64) (3.20) (2.11) 5.29 ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income (0.19) (0.12) (0.11) (0.18) (0.19) Distributions from capital gains - (0.75) (1.32) (1.84) (0.86) ---------- ---------- ---------- ---------- ---------- Total distributions (0.19) (0.87) (1.43) (2.02) (1.05) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 21.79 $ 17.40 $ 23.91 $ 28.54 $ 32.67 ========== ========== ========== ========== ========== TOTAL RETURN (B) 26.45% (24.33%) (11.28%) (7.12%) 18.87% Net assets, end of period (000's) $1,553,119 $1,436,309 $2,387,718 $2,914,338 $3,187,220 Ratio of expenses to average net assets 0.75% 0.75% 0.80% 0.79% 0.80% Ratio of expenses to average net assets after expense reductions 0.75% 0.75% 0.80% 0.79% 0.80% Ratio of net investment income (loss) to average net assets 0.92% 0.79% 0.48% 0.33% 0.63% Portfolio turnover rate 39% 40% 24% 32% 19%
GROWTH & INCOME TRUST ---------------------------------------------- SERIES II SERIES III ---------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 17.39 $ 23.43 $ 20.21 Income from investment operations: Net investment income (loss) 0.13 0.12 0.04 Net realized and unrealized gain (loss) on investments and foreign currency transactions 4.41 (5.29) 1.54 -------- --------- ------- Total from investment operations 4.54 (5.17) 1.58 -------- --------- ------- Less distributions: Dividends from net investment income (0.21) (0.12) - Distributions from capital gains - (0.75) - -------- --------- ------- Total distributions (0.21) (0.87) - -------- --------- ------- NET ASSET VALUE, END OF PERIOD $ 21.72 $ 17.39 $ 21.79 ======== ========= ======= TOTAL RETURN (B) 26.41% (22.83%) + 7.82% + Net assets, end of period (000's) $114,785 $ 39,491 $ 1 Ratio of expenses to average net assets 0.95% 0.95% (A) 57.22% (A) Ratio of expenses to average net assets after expense reductions 0.95% 0.95% (A) 1.10% (A) Ratio of net investment income (loss) to average net assets 0.69% 0.77% (A) 0.67% (A) Portfolio turnover rate 39% 40% 39% GREAT COMPANIES AMERICA ----------------------- SERIES II ----------------------- 08/04/2003* TO 12/31/2003+++ ----------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 Income from investment operations: Net investment income (loss) - # Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.51 ---------- Total from investment operations 1.51 ---------- Less distributions: Dividends from net investment income (0.01) ---------- Total distributions (0.01) ---------- NET ASSET VALUE, END OF PERIOD $ 14.00 ========== TOTAL RETURN (C) 12.07% + Net assets, end of period (000's) $ 2,796 Ratio of expenses to average net assets 3.14% (A) Ratio of expenses to average net assets after expense reductions 1.60% (A) Ratio of net investment income (loss) to average net assets (0.02%)(A) Portfolio turnover rate 5%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the period ended December 31, 2003 for Series II would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 82 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
EQUITY-INCOME TRUST --------------------------------------------------------- SERIES I --------------------------------------------------------- YEARS ENDED DECEMBER 31, ---------- ---------- ---------- -------- ---------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ---------- ---------- ---------- -------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.62 $ 15.13 $ 16.83 $ 17.05 $ 17.78 Income from investment operations: Net investment income (loss) 0.23 0.22 0.22 0.30 0.35 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.85 (2.13) (0.06) 1.63 0.25 ---------- ---------- ---------- -------- ---------- Total from investment operations 3.08 (1.91) 0.16 1.93 0.60 ---------- ---------- ---------- -------- ---------- Less distributions: Dividends from net investment income (0.22) (0.19) (0.29) (0.34) (0.37) Distributions from capital gains (0.26) (0.41) (1.57) (1.81) (0.96) ---------- ---------- ---------- -------- ---------- Total distributions (0.48) (0.60) (1.86) (2.15) (1.33) ---------- ---------- ---------- -------- ---------- NET ASSET VALUE, END OF PERIOD $ 15.22 $ 12.62 $ 15.13 $ 16.83 $ 17.05 ========== ========== ========== ======== ========== TOTAL RETURN (B) 25.57% (13.28%) 1.29% 12.99% 3.40% Net assets, end of period (000's) $1,277,187 $1,015,246 $1,147,075 $965,675 $1,011,260 Ratio of expenses to average net assets 0.92% 0.93% 0.93% 0.92% 0.91% Ratio of expenses to average net assets after expense reductions 0.89% 0.91% 0.91% 0.91% 0.91% Ratio of net investment income (loss) to average net assets 1.73% 1.58% 1.45% 1.94% 1.83% Portfolio turnover rate 15% 18% 19% 34% 30% EQUITY-INCOME TRUST --------------------------------------------- SERIES II SERIES III ---------------------------- ------------- YEAR ENDED 1/28/2002* 9/05/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.61 $ 15.05 $ 13.86 Income from investment operations: Net investment income (loss) 0.21 0.21 0.07 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.84 (2.05) 1.29 -------- --------- -------- Total from investment operations 3.05 (1.84) 1.36 -------- --------- -------- Less distributions: Dividends from net investment income (0.23) (0.19) - Distributions from capital gains (0.26) (0.41) - -------- --------- -------- Total distributions (0.49) (0.60) - -------- --------- -------- NET ASSET VALUE, END OF PERIOD $ 15.17 $ 12.61 $ 15.22 ======== ========= ======== TOTAL RETURN (B) 25.40% (12.89%) + 9.81% + Net assets, end of period (000's) $314,184 $ 87,245 $ 8 Ratio of expenses to average net assets 1.12% 1.13% (A) 14.85% (A) Ratio of expenses to average net assets after expense reductions 1.09% 1.11% (A) 1.24% (A) Ratio of net investment income (loss) to average net assets 1.55% 1.83% (A) 1.57% (A) Portfolio turnover rate 15% 18% 15%
INCOME & VALUE TRUST ---------------------------- ---------------------------------------------------------- SERI ES I SERIES II ---------------------------- ----------------------------- --------------------------- YEAR ENDED 1/28/2002* YEARS ENDED DECEMBER 31, DECEMBER 31, TO 2003+++ 2002+++ 2001+++ 2000+++ 1999 2003+++ 12/31/2002+++ -------- -------- --------- -------- -------- ------------ ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.36 $ 10.13 $ 10.56 $ 12.91 $ 13.36 $ 8.35 $ 10.01 Income from investment operations: Net investment income (loss) 0.13 0.17 0.19 0.27 0.32 0.11 0.12 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.04 (1.76) (0.11) 0.33 0.77 2.04 (1.60) -------- -------- --------- -------- -------- ------- ------- Total from investment operations 2.17 (1.59) 0.08 0.60 1.09 2.15 (1.48) -------- -------- --------- -------- -------- ------- ------- Less distributions: Dividends from net investment income (0.18) (0.18) (0.28) (0.33) (0.40) (0.19) (0.18) Distributions from capital gains - - (0.23) (2.62) (1.14) - - -------- -------- --------- -------- -------- ------- ------- Total distributions (0.18) (0.18) (0.51) (2.95) (1.54) (0.19) (0.18) -------- -------- --------- -------- -------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 10.35 $ 8.36 $ 10.13 $ 10.56 $ 12.91 $ 10.31 $ 8.35 ======== ======== ========= ======== ======== ======= ======= TOTAL RETURN 26.48% (15.93%) 0.98% 4.94% 8.52% 26.29% (15.02%)+ Net assets, end of period (000's) $521,949 $448,524 $ 561,623 $546,311 $639,824 $80,776 $22,839 Ratio of expenses to average net assets 0.87% 0.88% 0.87% 0.86% 0.86% 1.07% 1.08%(A) Ratio of net investment income (loss) to average net assets 1.45% 1.90% 1.90% 2.46% 2.39% 1.19% 1.55%(A) Portfolio turnover rate 91% 61% 70% 51% 165% 91% 61%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized (A) Annualized (B) The total return for the years ended 2003, 2002, 2001 and 2000 for Series I, for the year ended 2003 and the period ended December 31, 2002 for Series II and for the period ended for December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 83 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
BALANCED TRUST -------------------------------------------------------------------------------------- SERIES I SERIES II --------------------------------------------------------- --------------------------- YEAR ENDED 1/28/2002* YEARS ENDED DECEMBER 31, DECEMBER 31, TO --------------------------------------------------------- ------------ ------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 2003+++ 12/31/2002+++ -------- -------- -------- -------- -------- ------------ ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.36 $ 13.58 $ 15.46 $ 17.82 $ 19.40 $ 11.35 $ 13.46 Income from investment operations: Net investment income (loss) 0.22 0.26 0.30 0.30 0.55 0.19 0.19 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.36 (2.17) (1.87) (1.87) (0.85) 1.37 (1.99) -------- -------- -------- -------- -------- ------- ------- Total from investment operations 1.58 (1.91) (1.57) (1.57) (0.30) 1.56 (1.80) -------- -------- -------- -------- -------- ------- ------- Less distributions: Dividends from net investment income (0.29) (0.31) (0.31) (0.62) (0.37) (0.30) (0.31) Distributions from capital gains - - - (0.17) (0.91) - - -------- -------- -------- -------- -------- ------- ------- Total distributions (0.29) (0.31) (0.31) (0.79) (1.28) (0.30) (0.31) -------- -------- -------- -------- -------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 12.65 $ 11.36 $ 13.58 $ 15.46 $ 17.82 $ 12.61 $ 11.35 ======== ======== ======== ======== ======== ======= ======= TOTAL RETURN 14.30% (14.36%) (10.19%) (9.33%) (1.65%) 14.18% (13.67%) + Net assets, end of period (000's) $137,713 $136,628 $174,739 $201,965 $258,158 $18,139 $ 6,303 Ratio of expenses to average net assets 0.81% 0.81% 0.85% 0.86% 0.87% 1.01% 1.01% (A) Ratio of net investment income (loss) to average net assets 1.90% 2.12% 2.09% 1.76% 2.98% 1.65% 1.84% (A) Portfolio turnover rate 128% 153% 236% 132% 215% 128% 153%
GLOBAL ALLOCATION TRUST (FORMERLY, TACTICAL ALLOCATION TRUST) --------------------------------------------------------------------------------- SERIES I SERIES II ------------------------------------------------- ---------------------------- YEARS ENDED DECEMBER 31, 5/1/2000* YEAR ENDED 1/28/2002* --------------------------------- TO DECEMBER 31, TO 2003+++ 2002+++ 2001+++ 12/31/2000+++ 2003+++ 12/31/2002+++ -------- -------- -------- ------------- ------------ ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.71 $ 10.04 $ 11.67 $ 12.50 $ 7.70 $ 9.91 Income from investment operations: Net investment income (loss) 0.06 0.04 0.01 0.15 0.04 0.04 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.97 (2.37) (1.57) (0.55) 1.99 (2.25) -------- -------- -------- -------- ------- ------- Total from investment operations 2.03 (2.33) (1.56) (0.40) 2.03 (2.21) -------- -------- -------- -------- ------- ------- Less distributions: Dividends from net investment income (0.04) - # (0.01) (0.15) (0.05) - # Distributions from capital gains - - (0.06) (0.28) - - -------- -------- -------- -------- ------- ------- Total distributions (0.04) - # (0.07) (0.43) (0.05) - # -------- -------- -------- -------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 9.70 $ 7.71 $ 10.04 $ 11.67 $ 9.68 $ 7.70 ======== ======== ======== ======== ======= ======= TOTAL RETURN 26.43% (23.21%) (13.38%) (3.20%) + 26.47% (22.30%) + Net assets, end of period (000's) $ 64,143 $ 57,408 $ 73,714 $ 43,263 $18,820 $ 5,364 Ratio of expenses to average net assets 1.22% 1.18% 1.30% 1.33% (A) 1.42% 1.38% (A) Ratio of net investment income (loss) to average net assets 0.74% 0.44% 0.11% 1.74% (A) 0.49% 0.51% (A) Portfolio turnover rate 147% 18% 25% 133% 147% 18%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized # Amount is less than $.01 per share. (A) Annualized The accompanying notes are an integral part of the financial statements. 84 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
HIGH YIELD TRUST ----------------------------------------------------- SERIES I ----------------------------------------------------- YEARS ENDED DECEMBER 31, ----------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 -------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.50 $ 9.88 $ 11.65 $ 12.83 $ 12.92 Income from investment operations: Net investment income (loss) 0.69 0.75 1.06 1.26 1.14 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.28 (1.37) (1.64) (2.40) (0.12) -------- -------- -------- -------- -------- Total from investment operations 1.97 (0.62) (0.58) (1.14) 1.02 -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income (0.52) (0.76) (1.19) (0.04) (1.11) -------- -------- -------- -------- -------- Total distributions (0.52) (0.76) (1.19) (0.04) (1.11) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 9.95 $ 8.50 $ 9.88 $ 11.65 $ 12.83 ======== ======== ======== ======== ======== TOTAL RETURN (B) 24.15% (6.65%) (5.48%) (8.97%) 8.00% Net assets, end of period (000's) $621,277 $336,640 $323,309 $238,207 $241,054 Ratio of expenses to average net assets 0.82% 0.84% 0.84% 0.84% 0.84% Ratio of expenses to average net assets after expense reductions 0.82% 0.84% 0.84% 0.84% 0.84% Ratio of net investment income (loss) to average net assets 7.56% 8.55% 10.10% 10.15% 8.59% Portfolio turnover rate 75% 53% 64% 57% 62% HIGH YIELD TRUST ---------------------------------------- SERIES II SERIES III ------------ ------------ ------------ YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.49 $ 9.95 $ 9.21 Income from investment operations: Net investment income (loss) 0.68 0.47 0.22 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.27 (1.17) 0.52 -------- ------- ------ Total from investment operations 1.95 (0.70) 0.74 -------- ------- ------ Less distributions: Dividends from net investment income (0.53) (0.76) - -------- ------- ------ Total distributions (0.53) (0.76) - -------- ------- ------ NET ASSET VALUE, END OF PERIOD $ 9.91 $ 8.49 $ 9.95 ======== ======= ====== TOTAL RETURN (B) 23.91% (7.42%) + 8.03% + Net assets, end of period (000's) $295,865 $50,127 $ 16 Ratio of expenses to average net assets 1.02% 1.04% (A) 11.65% (A) Ratio of expenses to average net assets after expense reductions 1.02% 1.04% (A) 1.17% (A) Ratio of net investment income (loss) to average net assets 7.38% 6.18% (A) 7.15% (A) Portfolio turnover rate 75% 53% 75%
STRATEGIC BOND TRUST -------------------------------------------------------- SERIES I -------------------------------------------------------- YEARS ENDED DECEMBER 31, -------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 -------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.89 $ 10.74 $ 10.92 $ 11.14 $ 11.72 Income from investment operations: Net investment income (loss) 0.56 0.71 0.73 0.87 1.00 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.82 0.21 (0.07) (0.11) (0.75) -------- -------- -------- -------- -------- Total from investment operations 1.38 0.92 0.66 0.76 0.25 -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income (0.54) (0.77) (0.84) (0.98) (0.83) -------- -------- -------- -------- -------- Total distributions (0.54) (0.77) (0.84) (0.98) (0.83) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 11.73 $ 10.89 $ 10.74 $ 10.92 $ 11.14 ======== ======== ======== ======== ======== TOTAL RETURN (B) 13.11% 8.96% 6.24% 7.28% 2.22% Net assets, end of period (000's) $456,192 $406,972 $302,499 $333,293 $368,380 Ratio of expenses to average net assets 0.86% 0.86% 0.86% 0.87% 0.87% Ratio of expenses to average net assets after expense reductions 0.86% 0.86% 0.86% 0.87% 0.87% Ratio of net investment income (loss) to average net assets 4.96% 6.78% 6.85% 8.15% 8.15% Portfolio turnover rate 80% 86% 85% 175% 107% STRATEGIC BOND TRUST -------------------------------------------- SERIES II SERIES III --------------------------- ------------ YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.88 $ 10.88 $ 11.17 Income from investment operations: Net investment income (loss) 0.51 0.60 0.15 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.85 0.17 0.41 -------- -------- ------ Total from investment operations 1.36 0.77 0.56 -------- -------- ------ Less distributions: Dividends from net investment income (0.55) (0.77) - -------- -------- ------ Total distributions (0.55) (0.77) - -------- -------- ------ NET ASSET VALUE, END OF PERIOD $ 11.69 $ 10.88 $11.73 ======== ======== ====== TOTAL RETURN (B) 12.93% 7.46% + 5.01% + Net assets, end of period (000's) $151,218 $ 42,538 $ 13 Ratio of expenses to average net assets 1.06% 1.06% (A) 12.56% (A) Ratio of expenses to average net assets after expense reductions 1.06% 1.06% (A) 1.21% (A) Ratio of net investment income (loss) to average net assets 4.56% 6.18% (A) 4.11% (A) Portfolio turnover rate 80% 86% 80%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 85 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
GLOBAL BOND TRUST --------------------------------------------------- SERIES I --------------------------------------------------- YEARS ENDED DECEMBER 31, --------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 -------- -------- ------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.79 $ 11.48 $ 11.42 $ 11.60 $ 13.73 Income from investment operations: Net investment income (loss) 0.39 0.40 0.38 0.51 0.67 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.67 1.91 (0.32) (0.33) (1.55) -------- -------- ------- -------- -------- Total from investment operations 2.06 2.31 0.06 0.18 (0.88) -------- -------- ------- -------- -------- Less distributions: Dividends from net investment income (0.51) - - (0.36) (1.25) -------- -------- ------- -------- -------- Total distributions (0.51) - - (0.36) (1.25) -------- -------- ------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 15.34 $ 13.79 $ 11.48 $ 11.42 $ 11.60 ======== ======== ======= ======== ======== TOTAL RETURN (B) 15.40% 20.12% 0.53% 1.68% (6.67%) Net assets, end of period (000's) $195,165 $181,728 $96,534 $116,370 $145,992 Ratio of expenses to average net assets 0.91% 0.92% 1.02% 1.00% 0.98% Ratio of expenses to average net assets after expense reductions 0.91% 0.92% 1.02% 1.00% 0.98% Ratio of net investment income (loss) to average net assets 2.75% 3.20% 3.29% 4.61% 4.38% Portfolio turnover rate 338% 439% 527% 644% 471% GLOBAL BOND TRUST ------------------------------------------- SERIES II SERIES III --------------------------- ------------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.77 $ 11.36 $13.72 Income from investment operations: Net investment income (loss) 0.33 0.37 0.02 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.70 2.04 1.60 ------- ------- ------ Total from investment operations 2.03 2.41 1.62 ------- ------- ------ Less distributions: Dividends from net investment income (0.51) - - ------- ------- ------ Total distributions (0.51) - - ------- ------- ------ NET ASSET VALUE, END OF PERIOD $ 15.29 $ 13.77 $15.34 ======= ======= ====== TOTAL RETURN (B) 15.25% 21.21% + 11.81% + Net assets, end of period (000's) $64,400 $21,820 $ 5 Ratio of expenses to average net assets 1.11% 1.12% (A) 18.10% (A) Ratio of expenses to average net assets after expense reductions 1.11% 1.12% (A) 1.26% (A) Ratio of net investment income (loss) to average net assets 2.33% 3.07% (A) 0.53% (A) Portfolio turnover rate 338% 439% 338%
DIVERSIFIED BOND TRUST --------------------------------------------------- SERIES I --------------------------------------------------- YEARS ENDED DECEMBER 31, --------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 -------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.89 $ 10.59 $ 10.47 $ 10.82 $ 11.83 Income from investment operations: Net investment income (loss) 0.40 0.53 0.57 0.66 0.56 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.09 0.24 0.14 0.34 (0.46) -------- -------- -------- -------- -------- Total from investment operations 0.49 0.77 0.71 1.00 0.10 -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income (0.52) (0.47) (0.59) (0.58) (0.49) Distributions from capital gains - - - (0.77) (0.62) -------- -------- -------- -------- -------- Total distributions (0.52) (0.47) (0.59) (1.35) (1.11) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 10.86 $ 10.89 $ 10.59 $ 10.47 $ 10.82 ======== ======== ======== ======== ======== TOTAL RETURN 4.60% 7.61% 7.09% 10.32% 0.72% Net assets, end of period (000's) $296,041 $329,804 $286,742 $212,462 $218,868 Ratio of expenses to average net assets 0.83% 0.82% 0.82% 0.81% 0.84% Ratio of net investment income (loss) to average net assets 3.69% 5.03% 5.40% 6.50% 5.18% Portfolio turnover rate 193% 83% 140% 76% 173% DIVERSIFIED BOND TRUST ------------------------------------------- SERIES II SERIES III --------------------------- ------------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.88 $ 10.62 $10.54 Income from investment operations: Net investment income (loss) 0.35 0.44 0.08 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.13 0.29 0.24 ------- ------- ------ Total from investment operations 0.48 0.73 0.32 ------- ------- ------ Less distributions: Dividends from net investment income (0.52) (0.47) - Distributions from capital gains - - - ------- ------- ------ Total distributions (0.52) (0.47) - ------- ------- ------ NET ASSET VALUE, END OF PERIOD $ 10.84 $ 10.88 $10.86 ======= ======= ====== TOTAL RETURN 4.59% 7.21% + 3.04% + Net assets, end of period (000's) $57,909 $25,249 $ 5 Ratio of expenses to average net assets 1.03% 1.02% (A) 1.18% (A) Ratio of net investment income (loss) to average net assets 3.31% 4.52% (A) 2.30% (A) Portfolio turnover rate 193% 83% 193%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 86 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
INVESTMENT QUALITY BOND TRUST --------------------------------------------------- SERIES I --------------------------------------------------- YEARS ENDED DECEMBER 31, --------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 -------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.33 $ 11.85 $ 11.74 $ 11.60 $ 12.46 Income from investment operations: Net investment income (loss) 0.61 0.67 0.74 0.79 0.81 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.26 0.45 0.09 0.24 (1.02) -------- -------- -------- -------- -------- Total from investment operations 0.87 1.12 0.83 1.03 (0.21) -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income (0.62) (0.64) (0.72) (0.89) (0.65) -------- -------- -------- -------- -------- Total distributions (0.62) (0.64) (0.72) (0.89) (0.65) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 12.58 $ 12.33 $ 11.85 $ 11.74 $ 11.60 ======== ======== ======== ======== ======== TOTAL RETURN (B) 7.32% 9.94% 7.33% 9.40% (1.79%) Net assets, end of period (000's) $399,189 $469,334 $407,652 $282,725 $288,594 Ratio of expenses to average net assets 0.75% 0.74% 0.74% 0.73% 0.77% Ratio of expenses to average net assets after expense reductions 0.75% 0.74% 0.74% 0.73% 0.77% Ratio of net investment income (loss) to average net assets 4.93% 5.71% 6.28% 6.95% 6.79% Portfolio turnover rate 59% 46% 50% 35% 36% INVESTMENT QUALITY BOND TRUST ------------------------------------------- SERIES II SERIES III --------------------------- ------------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.32 $ 11.94 $12.08 Income from investment operations: Net investment income (loss) 0.57 0.56 0.17 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.29 0.46 0.33 ------- ------- ------ Total from investment operations 0.86 1.02 0.50 ------- ------- ------ Less distributions: Dividends from net investment income (0.63) (0.64) - ------- ------- ------ Total distributions (0.63) (0.64) - ------- ------- ------ NET ASSET VALUE, END OF PERIOD $ 12.55 $ 12.32 $12.58 ======= ======= ====== TOTAL RETURN (B) 7.24% 9.02% + 4.14% + Net assets, end of period (000's) $84,928 $38,021 $ 22 Ratio of expenses to average net assets 0.95% 0.94% (A) 11.06% (A) Ratio of expenses to average net assets after expense reductions 0.95% 0.94% (A) 1.10% (A) Ratio of net investment income (loss) to average net assets 4.64% 5.07% (A) 4.31% (A) Portfolio turnover rate 59% 46% 59%
TOTAL RETURN TRUST ------------------------------------------------------------ SERIES I ------------------------------------------------------------ YEARS ENDED DECEMBER 31, 05/01/1999* -------------------------------------------- TO 2003+++ 2002+++ 2001+++ 2000+++ 12/31/1999 ---------- ---------- -------- -------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 14.43 $ 13.88 $ 13.33 $ 12.37 $ 12.50 Income from investment operations: Net investment income (loss) 0.35 0.49 0.61 0.79 0.35 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.35 0.78 0.51 0.48 (0.48) ---------- ---------- -------- -------- -------- Total from investment operations 0.70 1.27 1.12 1.27 (0.13) ---------- ---------- -------- -------- -------- Less distributions: Dividends from net investment income (0.77) (0.42) (0.57) (0.31) - Distributions from capital gains (0.15) (0.30) - - - ---------- ---------- -------- -------- -------- Total distributions (0.92) (0.72) (0.57) (0.31) - ---------- ---------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 14.21 $ 14.43 $ 13.88 $ 13.33 $ 12.37 ========== ========== ======== ======== ======== TOTAL RETURN (B) 5.02% 9.52% 8.28% 10.49% (1.04%) + Net assets, end of period (000's) $1,036,128 $1,072,629 $736,472 $387,647 $240,016 Ratio of expenses to average net assets 0.82% 0.81% 0.83% 0.84% 0.84% (A) Ratio of expenses to average net assets after expense reductions 0.82% 0.81% 0.83% 0.84% 0.84% (A) Ratio of net investment income (loss) to average net assets 2.48% 3.53% 4.52% 6.23% 5.72% (A) Portfolio turnover rate 285% 381% 439% 551% 95% TOTAL RETURN TRUST ------------------------------------------ SERIES II SERIES III --------------------------- ------------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 14.42 $ 14.00 $13.75 Income from investment operations: Net investment income (loss) 0.31 0.36 0.08 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.37 0.78 0.38 -------- -------- ------ Total from investment operations 0.68 1.14 0.46 -------- -------- ------ Less distributions: Dividends from net investment income (0.78) (0.42) - Distributions from capital gains (0.15) (0.30) - -------- -------- ------ Total distributions (0.93) (0.72) - -------- -------- ------ NET ASSET VALUE, END OF PERIOD $ 14.17 $ 14.42 $14.21 ======== ======== ====== TOTAL RETURN (B) 4.87% 8.51% + 3.35% + Net assets, end of period (000's) $491,176 $218,354 $ 337 Ratio of expenses to average net assets 1.02% 1.01% (A) 7.92% (A) Ratio of expenses to average net assets after expense reductions 1.02% 1.01% (A) 1.17% (A) Ratio of net investment income (loss) to average net assets 2.15% 2.78% (A) 1.74% (A) Portfolio turnover rate 285% 381% 285%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 87 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
REAL RETURN BOND TRUST ---------------------------------------------- SERIES I SERIES II SERIES III ------------- ------------- ------------- 5/05/2003* 5/05/2003* 9/5/2003* TO TO TO 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 12.50 $12.41 Income from investment operations: Net investment income (loss) 0.08 0.06 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.53 0.54 0.69 -------- -------- ------ Total from investment operations 0.61 0.60 0.70 -------- -------- ------ NET ASSET VALUE, END OF PERIOD $ 13.11 $ 13.10 $13.11 ======== ======== ====== TOTAL RETURN (B) 4.88% + 4.80% + 5.64% + Net assets, end of period (000's) $137,432 $142,254 $ 8 Ratio of expenses to average net assets 0.83% (A) 1.03% (A) 14.88% (A) Ratio of expenses to average net assets after expense reductions 0.83% (A) 1.03% (A) 1.18% (A) Ratio of net investment income (loss) to average net assets 1.00% (A) 0.67% (A) 0.20% (A) Portfolio turnover rate 574% 574% 574%
U.S. GOVERNMENT SECURITIES TRUST --------------------------------------------------- SERIES I --------------------------------------------------- YEARS ENDED DECEMBER 31, --------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 -------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 14.22 $ 13.72 $ 13.57 $ 13.24 $ 13.82 Income from investment operations: Net investment income (loss) 0.21 0.54 0.69 0.85 0.74 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.03 0.52 0.23 0.50 (0.77) -------- -------- -------- -------- -------- Total from investment operations 0.24 1.06 0.92 1.35 (0.03) -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income (0.45) (0.56) (0.77) (1.02) (0.55) -------- -------- -------- -------- -------- Total distributions (0.45) (0.56) (0.77) (1.02) (0.55) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 14.01 $ 14.22 $ 13.72 $ 13.57 $ 13.24 ======== ======== ======== ======== ======== TOTAL RETURN (B) 1.73% 7.99% 7.03% 10.87% (0.23%) Net assets, end of period (000's) $524,845 $707,709 $558,392 $333,163 $363,269 Ratio of expenses to average net assets 0.73% 0.74% 0.71% 0.72% 0.72% Ratio of expenses to average net assets after expense reductions 0.73% 0.74% 0.71% 0.72% 0.72% Ratio of net investment income (loss) to average net assets 1.52% 3.88% 5.10% 6.56% 6.03% Portfolio turnover rate 97% 19% 41% 58% 40% U.S. GOVERNMENT SECURITIES TRUST ------------------------------------------- SERIES II SERIES III --------------------------- ------------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 14.21 $ 13.77 $13.70 Income from investment operations: Net investment income (loss) 0.18 0.39 0.03 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.04 0.61 0.28 -------- -------- ------ Total from investment operations 0.22 1.00 0.31 -------- -------- ------ Less distributions: Dividends from net investment income (0.46) (0.56) - -------- -------- ------ Total distributions (0.46) (0.56) - -------- -------- ------ NET ASSET VALUE, END OF PERIOD $ 13.97 $ 14.21 $14.01 ======== ======== ====== TOTAL RETURN (B) 1.59% 7.53% + 2.26% + Net assets, end of period (000's) $207,778 $128,200 $ 106 Ratio of expenses to average net assets 0.93% 0.94% (A) 8.13% (A) Ratio of expenses to average net assets after expense reductions 0.93% 0.94% (A) 1.08% (A) Ratio of net investment income (loss) to average net assets 1.28% 3.04% (A) 0.82% (A) Portfolio turnover rate 97% 19% 97%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 88 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
MONEY MARKET TRUST ------------------------------------------------------------------- SERIES I ------------------------------------------------------------------- YEARS ENDED DECEMBER 31, ------------------------------------------------------------------- 2003+++ 2002+++ 2001+++ 2000+++ 1999 ------------ ------------ ----------- ---------- ------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 Income from investment operations: Net investment income (loss) 0.06 0.12 0.34 0.57 0.45 ------------ ------------ ----------- ---------- ------------ Total from investment operations 0.06 0.12 0.34 0.57 0.45 ------------ ------------ ----------- ---------- ------------ Less distributions: Dividends from net investment income (0.06) (0.12) (0.34) (0.57) (0.45) ------------ ------------ ----------- ---------- ------------ Total distributions (0.06) (0.12) (0.34) (0.57) (0.45) ------------ ------------ ----------- ---------- ------------ NET ASSET VALUE, END OF PERIOD $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 ============ ============ =========== ========== ============ TOTAL RETURN (B) 0.58% 1.18% 3.59% 5.88% 4.60% Net assets, end of period (000's) $ 1,037,112 $ 1,415,874 $ 1,484,694 $ 950,155 $ 1,084,859 Ratio of expenses to average net assets 0.55% 0.55% 0.55% 0.54% 0.55% Ratio of expenses to average net assets after expense reductions 0.55% 0.55% 0.55% 0.54% 0.55% Ratio of net investment income (loss) to average net assets 0.59% 1.17% 3.38% 5.71% 4.54% MONEY MARKET TRUST ---------------------------------------------- SERIES II SERIES III ------------------------------ ------------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.00 $ 10.00 Income from investment operations: Net investment income (loss) 0.04 0.08 -# ------------ ------------ ------------ Total from investment operations 0.04 0.08 -# ------------ ------------ ------------ Less distributions: Dividends from net investment income (0.04) (0.08) -# ------------ ------------ ------------ Total distributions (0.04) (0.08) -# ------------ ------------ ------------ NET ASSET VALUE, END OF PERIOD $ 10.00 $ 10.00 $ 10.00 ============ ============ ============ TOTAL RETURN (B) 0.38% 0.89%+ 0.04%+ Net assets, end of period (000's) $ 183,428 $ 201,613 $ 2,152 Ratio of expenses to average net assets 0.75% 0.75%(A) 8.15%(A) Ratio of expenses to average net assets after expense reductions 0.75% 0.75%(A) 0.90%(A) Ratio of net investment income (loss) to average net assets 0.38% 0.91%(A) 0.14%(A)
SMALL CAP INDEX TRUST -------------------------------------------------------------- SERIES I -------------------------------------------------------------- YEARS ENDED DECEMBER 31, --------------------------------------------- 5/1/2000* TO 2003+++ 2002+++ 2001+++ 12/31/2000+++ ------------- ------------- ------------- -------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.78 $ 11.28 $ 11.29 $ 12.50 Income from investment operations: Net investment income (loss) 0.06 0.10 0.20 0.46 Net realized and unrealized gain (loss) 3.96 (2.52) (0.03) (1.26) on investments and foreign currency transactions ------------- ------------- ------------- ------------- Total from investment operations 4.02 (2.42) 0.17 (0.80) ------------- ------------- ------------- ------------- Less distributions: Dividends from net investment income - (0.08) (0.18) (0.41) ------------- ------------- ------------- ------------- Total distributions - (0.08) (0.18) (0.41) ------------- ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 12.80 $ 8.78 $ 11.28 $ 11.29 ============= ============= ============= ============= TOTAL RETURN (B) 45.79% (21.47%) 1.50% (6.38%)+ Net assets, end of period (000's) $ 136,719 $ 59,161 $ 50,280 $ 34,825 Ratio of expenses to average net assets 0.58% 0.59% 0.60% 0.65%(A) Ratio of expenses to average net assets after expense reductions 0.58% 0.59% 0.60% 0.60%(A) Ratio of net investment income (loss) to average net assets 0.61% 1.05% 1.87% 5.63%(A) Portfolio turnover rate 36% 57% 32% 1% SMALL CAP INDEX TRUST ---------------------------------------------- SERIES II SERIES III ----------------------------- ------------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.78 $ 11.07 $ 11.77 Income from investment operations: Net investment income (loss) 0.04 0.07 0.01 Net realized and unrealized gain (loss) 3.94 (2.28) 1.02 on investments and foreign currency transactions ------------- ------------- ------------- Total from investment operations 3.98 (2.21) 1.03 ------------- ------------- ------------- Less distributions: Dividends from net investment income - (0.08) - ------------- ------------- ------------- Total distributions - (0.08) - ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 12.76 $ 8.78 $ 12.80 ============= ============= ============= TOTAL RETURN (B) 45.33% (19.95%)+ 8.75%+ Net assets, end of period (000's) $ 38,350 $ 9,714 $ 6 Ratio of expenses to average net assets 0.78% 0.79%(A) 16.49%(A) Ratio of expenses to average net assets after expense reductions 0.78% 0.79%(A) 0.93%(A) Ratio of net investment income (loss) to average net assets 0.39% 0.87%(A) 0.18%(A) Portfolio turnover rate 36% 57% 36%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 89 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
INTERNATIONAL INDEX TRUST ------------------------------------------------------------- SERIES I ------------------------------------------------------------- YEARS ENDED DECEMBER 31, --------------------------------------------- 5/1/2000* TO 2003+++ 2002+++ 2001+++ 12/31/2000+++ ------------- ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.96 $ 8.52 $ 11.11 $ 12.50 Income from investment operations: Net investment income (loss) 0.13 0.12 0.12 0.09 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.11 (1.58) (2.61) (1.32) ------------- ------------- ------------- ------------- Total from investment operations 2.24 (1.46) (2.49) (1.23) ------------- ------------- ------------- ------------- Less distributions: Dividends from net investment income (0.12) (0.10) (0.10) (0.16) ------------- ------------- ------------- ------------- Total distributions (0.12) (0.10) (0.10) (0.16) ------------- ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 9.08 $ 6.96 $ 8.52 $ 11.11 ============= ============= ============= ============= TOTAL RETURN (B) 32.18% (17.15%) (22.41%) (9.84%)+ Net assets, end of period (000's) $ 82,197 $ 50,675 $ 49,673 $ 49,180 Ratio of expenses to average net assets 0.62% 0.62% 0.62% 0.65%(A) Ratio of expenses to average net assets after expense reductions 0.60% 0.60% 0.60% 0.60%(A) Ratio of net investment income (loss) to average net assets 1.75% 1.57% 1.25% 1.17%(A) Portfolio turnover rate 13% 7% 12% 8% INTERNATIONAL INDEX TRUST -------------------------------------------------- SERIES II SERIES III ------------------------------- ------------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 6.96 $ 8.15 $ 7.96 Income from investment operations: Net investment income (loss) 0.12 0.05 -# Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.11 (1.14) 1.24 ------------- ------------- ------------- Total from investment operations 2.23 (1.09) 1.24 ------------- ------------- ------------- Less distributions: Dividends from net investment income (0.11) (0.10) (0.13) ------------- ------------- ------------- Total distributions (0.11) (0.10) (0.13) ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 9.08 $ 6.96 $ 9.07 ============= ============= ============= TOTAL RETURN (B) 32.12% (13.35%)+ 15.57%+ Net assets, end of period (000's) $ 17,176 $ 5,338 $ 3 Ratio of expenses to average net assets 0.82% 0.82%(A) 78.84%(A) Ratio of expenses to average net assets after expense reductions 0.80% 0.80%(A) 0.95%(A) Ratio of net investment income (loss) to average net assets 1.57% 0.81%(A) 0.17%(A) Portfolio turnover rate 13% 7% 13%
MID CAP INDEX TRUST -------------------------------------------------------------- SERIES I -------------------------------------------------------------- YEARS ENDED DECEMBER 31, ---------------------------------------------- 5/1/2000* TO 2003+++ 2002+++ 2001+++ 12/31/2000+++ ------------- ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.82 $ 12.82 $ 13.11 $ 12.50 Income from investment operations: Net investment income (loss) 0.08 0.07 0.11 0.10 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.66 (2.01) (0.32) 0.77 ------------- ------------- ------------- ------------- Total from investment operations 3.74 (1.94) (0.21) 0.87 ------------- ------------- ------------- ------------- Less Distribution: Dividends from net investment income - (0.06) (0.08) (0.08) Distributions from capital gains - - - (0.18) ------------- ------------- ------------- ------------- Total distributions - (0.06) (0.08) (0.26) ------------- ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 14.56 $ 10.82 $ 12.82 $ 13.11 ============= ============= ============= ============= TOTAL RETURN (C) 34.57% (15.16%) (1.73%) 7.15%+ Net assets, end of period (000's) $ 145,255 $ 87,282 $ 58,197 $ 32,007 Ratio of expenses to average net assets 0.58% 0.58% 0.60% 0.69%(A) Ratio of expenses to average net assets after expense reductions 0.58% 0.58% 0.60% 0.60%(A) Ratio of net investment income (loss) to average net assets 0.62% 0.58% 0.85% 1.17%(A) Portfolio turnover rate 8% 20% 19% 49% MID CAP INDEX TRUST ------------------------------------------------ SERIES II SERIES III ------------------------------ ------------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.81 $ 12.80 $ 13.31 Income from investment operations: Net investment income (loss) 0.05 0.05 0.04 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.66 (1.98) 1.21 ------------- ------------- ------------- Total from investment operations 3.71 (1.93) 1.25 ------------- ------------- ------------- Less distribution: Dividends from net investment income - (0.06) - Distributions from capital gains - - - ------------- ------------- ------------- Total distributions - (0.06) - ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 14.52 $ 10.81 $ 14.56 ============= ============= ============= TOTAL RETURN (C) 34.32% (15.07%)+ 9.39%+ Net assets, end of period (000's) $ 42,657 $ 12,810 -## Ratio of expenses to average net assets 0.78% 0.78%(A) 128.76%(A) Ratio of expenses to average net assets after expense reductions 0.78% 0.78%(A) 0.93%(A) Ratio of net investment income (loss) to average net assets 0.42% 0.42%(A) 0.88%(A) Portfolio turnover rate 8% 20% 8%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. ## Amount is less than $1,000 + Not Annualized (A) Annualized (B) The total return for the years ended 2003, 2002, 2001 and the period ended December 31, 2000 for Series I, for the year ended 2003 and the period ended December 31, 2002 for Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the period ended December 31, 2000 for Series I and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 90 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
TOTAL STOCK MARKET INDEX TRUST ---------------------------------------------------------------------------- SERIES I SERIES II ------------------------------------------------- ---------------------------- YEARS ENDED DECEMBER 31, 5/1/2000* YEAR ENDED 1/28/2002* -------------------------------- TO DECEMBER 31, TO 2003+++ 2002+++ 2001+++ 12/31/2000+++ 2003+++ 12/31/2002+++ --------- ---------- --------- ------------- ------------ -------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.63 $ 9.79 $ 11.14 $ 12.50 $ 7.62 $ 9.67 Income from investment operations: Net investment income (loss) 0.09 0.08 0.09 0.08 0.07 0.07 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.24 (2.16) (1.36) (1.33) 2.24 (2.04) -------- -------- ------- --------- -------- -------- Total from investment operations 2.33 (2.08) (1.27) (1.25) 2.31 (1.97) -------- -------- ------- --------- -------- -------- Less distributions: Dividends from net investment income - (0.08) (0.08) (0.06) - (0.08) Distributions from capital gains - - - (0.05) - - -------- -------- ------- --------- -------- -------- Total distributions - (0.08) (0.08) (0.11) - (0.08) -------- -------- ------- --------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 9.96 $ 7.63 $ 9.79 $ 11.14 $ 9.93 $ 7.62 ======== ======== ======= ========= ======== ======== TOTAL RETURN (B) 30.54% (21.29%) (11.41%) (10.04%)+ 30.31% (20.36%)+ Net assets, end of period (000's) $133,964 $ 59,970 $73,657 $ 56,390 $ 29,972 $ 6,163 Ratio of expenses to average net assets 0.58% 0.59% 0.59% 0.62%(A) 0.78% 0.79%(A) Ratio of expenses to average net assets after expense reductions 0.58% 0.59% 0.59% 0.60%(A) 0.78% 0.79%(A) Ratio of net investment income (loss) to average net assets 1.05% 0.96% 0.93% 0.93%(A) 0.86% 0.98%(A) Portfolio turnover rate 6% 4% 5% 16% 6% 4% SERIES III ------------- 9/5/2003* TO 12/31/2003+++ ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.17 Income from investment operations: Net investment income (loss) 0.03 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.76 --------- Total from investment operations 0.79 --------- Less distributions: Dividends from net investment income - Distributions from capital gains - --------- Total distributions - --------- NET ASSET VALUE, END OF PERIOD $ 9.96 ========= TOTAL RETURN (B) 8.62%+ Net assets, end of period (000's) $ 1 Ratio of expenses to average net assets 122.81%(A) Ratio of expenses to average net assets after expense reductions 0.93%(A) Ratio of net investment income (loss) to average net assets 0.96%(A) Portfolio turnover rate 6%
500 INDEX TRUST ------------------------------------------------------------------------------ SERIES I SERIES II ------------------------------------------------- --------------------------- YEARS ENDED DECEMBER 31, 5/1/2000* YEAR ENDED 1/28/2002* ---------------------------------- TO DECEMBER 31, TO 2003+++ 2002+++ 2001+++ 12/31/2000+++ 2003+++ 12/31/2002+++ ---------- --------- ---------- ------------- ------------ ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 7.60 $ 9.81 $ 11.28 $ 12.50 $ 7.59 $ 9.68 Income from investment operations: Net investment income (loss) 0.10 0.09 0.09 0.09 0.09 0.08 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.01 (2.30) (1.48) (1.29) 1.99 (2.17) -------- -------- -------- --------- --------- --------- Total from investment operations 2.11 (2.21) (1.39) (1.20) 2.08 (2.09) -------- -------- -------- --------- --------- --------- Less distributions: Dividends from net investment income (0.08) -# (0.08) (0.02) (0.08) -# -------- -------- -------- --------- --------- --------- Total distributions (0.08) -# (0.08) (0.02) (0.08) -# -------- -------- -------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 9.63 $ 7.60 $ 9.81 $ 11.28 $ 9.59 $ 7.59 ======== ======== ======== ========= ========= ========= TOTAL RETURN (C) 28.01% (22.53%) (12.37%) (9.57%)+ 27.76% (21.59%)+ Net assets, end of period (000's) $980,366 $678,414 $772,559 $ 680,264 $ 115,826 $ 38,267 Ratio of expenses to average net assets 0.57% 0.57% 0.57% 0.55%(A) 0.77% 0.77%(A) Ratio of expenses to average net assets after expense reductions 0.57% 0.57% 0.57% 0.55%(A) 0.77% 0.77%(A) Ratio of net investment income (loss) to average net assets 1.22% 1.05% 0.84% 1.08%(A) 1.02% 1.12%(A) Portfolio turnover rate 1% 6% 1% 6% 1% 6% SERIES III -------------- 9/5/2003* TO 12/31/2003+++ -------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.87 Income from investment operations: Net investment income (loss) 0.03 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.73 --------- Total from investment operations 0.76 --------- Less distributions: Dividends from net investment income - --------- Total distributions - --------- NET ASSET VALUE, END OF PERIOD $ 9.63 ========= TOTAL RETURN (C) 8.57%+ Net assets, end of period (000's) $ 16 Ratio of expenses to average net assets 11.12%(A) Ratio of expenses to average net assets after expense reductions 0.92%(A) Ratio of net investment income (loss) to average net assets 1.09%(A) Portfolio turnover rate 1%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized (B) The total return for the period ended December 31, 2000 for Series I and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 91 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
LIFESTYLE AGGRESSIVE 1000 TRUST ------------------------------------------------------------ SERIES I ------------------------------------------------------------ YEARS ENDED DECEMBER 31, ------------------------------------------------------------ 2003 2002 2001 2000 1999 ------------ ---------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.14 $ 10.34 $ 13.09 $ 14.54 $ 13.39 Income from investment operations: Net investment income (loss) ** 0.02 0.04 0.04 0.05 0.08 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.81 (2.16) (1.84) (0.78) 1.77 ------------ ---------- --------- --------- --------- Total from investment operations 2.83 (2.12) (1.80) (0.73) 1.85 ------------ ---------- --------- --------- --------- Less distributions: Dividends from net investment income (0.02) (0.04) (0.04) (0.05) (0.08) Distributions from capital gains - - (0.53) (0.67) (0.62) Return of capital (0.02) (0.04) (0.38) - - ------------ ---------- --------- --------- --------- Total distributions (0.04) (0.08) (0.95) (0.72) (0.70) ------------ ---------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 10.93 $ 8.14 $ 10.34 $ 13.09 $ 14.54 ============ ========== ========= ========= ========= TOTAL RETURN (B) 34.91% (20.71%) (13.67%) (5.11%) 14.61% Net assets, end of period (000's) $ 327,927 $ 185,893 $ 187,473 $ 148,693 $ 93,073 Ratio of expenses to average net assets *** 0.079% 0.10% 0.10% 0.075% 0.03% Ratio of expenses to average net assets after expense reductions *** 0.075% 0.075% 0.075% 0.05% 0.03% Ratio of net investment income (loss) to average net assets ** 0.23% 0.33% 0.29% 0.33% 0.64% Portfolio turnover rate 53% 90% 82% 104% 136% LIFESTYLE AGGRESSIVE 1000 TRUST ---------------------------------------- SERIES II SERIES III ------------------------ ---------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003 12/31/2002 12/31/2003 ------------ ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 8.14 $ 10.09 $ 9.80 Income from investment operations: Net investment income (loss) ** 0.02 0.04 0.00 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.81 (1.91) 1.13 ------------ ---------- ---------- Total from investment operations 2.83 (1.87) 1.13 ------------ ---------- ---------- Less distributions: Dividends from net investment income (0.02) (0.04) - Distributions from capital gains - - - Return of capital (0.02) (0.04) - ------------ ---------- ---------- Total distributions (0.04) (0.08) - ------------ ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 10.93 $ 8.14 $ 10.93 ============ ========== ========== TOTAL RETURN (B) 34.91% (18.74%)+ 11.53%+ Net assets, end of period (000's) $ 157,764 $ 27,099 $ 7 Ratio of expenses to average net assets *** 0.079% 0.10%(A) 21.50%(A) Ratio of expenses to average net assets after expense reductions *** 0.075% 0.075%(A) 0.225%(A) Ratio of net investment income (loss) to average net assets ** 0.11% (0.05%)(A) (0.13%)(A) Portfolio turnover rate 53% 90% 53%
LIFESTYLE GROWTH 820 TRUST ------------------------------------------------------------ SERIES I ------------------------------------------------------------ YEARS ENDED DECEMBER 31, ------------------------------------------------------------ 2003 2002 2001 2000 1999 ------------ ---------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.28 $ 11.25 $ 13.59 $ 15.18 $ 13.78 Income from investment operations: Net investment income (loss) ** 0.09 0.14 0.18 0.13 0.23 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.61 (1.89) (1.43) (0.57) 1.94 ------------ ---------- --------- --------- --------- Total from investment operations 2.70 (1.75) (1.25) (0.44) 2.17 ------------ ---------- --------- --------- --------- Less distributions: Dividends from net investment income (0.09) (0.14) (0.18) (0.13) (0.23) Distributions from capital gains (0.01) (0.02) (0.59) (1.02) (0.54) Return of capital (0.02) (0.06) (0.32) - - ------------ ---------- --------- --------- --------- Total distributions (0.12) (0.22) (1.09) (1.15) (0.77) ------------ ---------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 11.86 $ 9.28 $ 11.25 $ 13.59 $ 15.18 ============ ========== ========= ========= ========= TOTAL RETURN (C) 29.55% (15.84%) (8.97%) (3.05%) 16.56% Net assets, end of period (000's) $ 1,223,950 $ 765,561 $ 726,548 $ 545,106 $ 414,257 Ratio of expenses to average net assets *** 0.071% 0.09% 0.09% 0.06% 0.04% Ratio of expenses to average net assets after expense reductions *** 0.071% 0.075% 0.075% 0.05% 0.04% Ratio of net investment income (loss) to average net assets ** 0.84% 1.24% 1.33% 0.94% 1.73% Portfolio turnover rate 55% 117% 84% 102% 127% LIFESTYLE GROWTH 820 TRUST ---------------------------------------- SERIES II SERIES III ------------------------ ---------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003 12/31/2002 12/31/2003 ------------ ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.28 $ 11.06 $ 10.77 Income from investment operations: Net investment income (loss) ** 0.09 0.14 - Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.60 (1.70) 1.09 ------------ ---------- ---------- Total from investment operations 2.69 (1.56) 1.09 ------------ ---------- ---------- Less distributions: Dividends from net investment income (0.09) (0.14) - Distributions from capital gains (0.01) (0.02) - Return of capital (0.02) (0.06) - ------------ ---------- ---------- Total distributions (0.12) (0.22) - ------------ ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 11.85 $ 9.28 $ 11.86 ============ ========== ========== TOTAL RETURN (C) 29.44% (14.4%)+ 10.12%+ Net assets, end of period (000's) $ 651,730 $ 120,949 $ 15 Ratio of expenses to average net assets *** 0.071% 0.09%(A) 19.95%(A) Ratio of expenses to average net assets after expense reductions *** 0.071% 0.075%(A) 0.221%(A) Ratio of net investment income (loss) to average net assets ** 0.53% (0.01%)(A) (0.14%)(A) Portfolio turnover rate 55% 117% 55%
* Commencement of operations ** Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. *** Does not include expenses of the investment companies in which the Portfolio invests. + Not Annualized (A) Annualized (B) The total return for the years ended 2003, 2002, 2001, 2000 and 1999 for Series I, for the year ended 2003 and the period ended December 31, 2002 for Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the years ended 2002, 2001, 2000 and 1999 for Series I, for the year ended 2003 and the period ended December 31, 2002 for Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 92 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
LIFESTYLE BALANCED 640 TRUST ------------------------------------------------------------- SERIES I ------------------------------------------------------------- YEARS ENDED DECEMBER 31, ------------------------------------------------------------- 2003 2002 2001 2000 1999 ------------ ---------- ---------- ---------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.30 $ 11.82 $ 13.53 $ 14.24 $ 13.49 Income from investment operations: Net investment income (loss) ** 0.19 0.29 0.35 0.26 0.39 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.22 (1.43) (1.02) 0.06 1.20 ------------ ---------- ---------- ---------- --------- Total from investment operations 2.41 (1.14) (0.67) 0.32 1.59 ------------ ---------- ---------- ---------- --------- Less distributions: Dividends from net investment income (0.19) (0.29) (0.35) (0.26) (0.39) Distributions from capital gains (0.05) (0.04) (0.69) (0.77) (0.45) Return of capital (0.04) (0.05) - - - ------------ ---------- ---------- ---------- --------- Total distributions (0.28) (0.38) (1.04) (1.03) (0.84) ------------ ---------- ---------- ---------- --------- NET ASSET VALUE, END OF PERIOD $ 12.43 $ 10.30 $ 11.82 $ 13.53 $ 14.24 ============ ========== ========== ========== ========= TOTAL RETURN (B) 23.97% (9.95%) (4.71%) 2.45% 12.42% Net assets, end of period (000's) $ 1,330,925 $ 859,857 $ 745,215 $ 545,718 $ 416,706 Ratio of expenses to average net assets *** 0.070% 0.09% 0.09% 0.06% 0.03% Ratio of expenses to average net assets after expense reductions *** 0.070% 0.075% 0.075% 0.05% 0.03% Ratio of net investment income (loss) to average net assets ** 1.59% 2.48% 2.47% 1.87% 2.93% Portfolio turnover rate 55% 114% 71% 85% 126% LIFESTYLE BALANCED 640 TRUST ---------------------------------------- SERIES II SERIES III ------------------------ ---------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003 12/31/2002 12/31/2003 ------------ ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.30 $ 11.72 $ 11.45 Income from investment operations: Net investment income (loss) ** 0.19 0.29 - Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.22 (1.33) 0.98 ------------ ---------- ---------- Total from investment operations 2.41 (1.04) 0.98 ------------ ---------- ---------- Less distributions: Dividends from net investment income (0.19) (0.29) - Distributions from capital gains (0.05) (0.04) - Return of capital (0.04) (0.05) - ------------ ---------- ---------- Total distributions (0.28) (0.38) - ------------ ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 12.43 $ 10.30 $ 12.43 ============ ========== ========== TOTAL RETURN (B) 23.97% (9.18%)+ 8.56%+ Net assets, end of period (000's) $ 740,011 $ 164,273 $ 46 Ratio of expenses to average net assets *** 0.070% 0.09%(A) 8.35%(A) Ratio of expenses to average net assets after expense reductions *** 0.070% 0.075%(A) 0.220%(A) Ratio of net investment income (loss) to average net assets ** 1.11% 0.07%(A) (0.22%)(A) Portfolio turnover rate 55% 114% 55%
LIFESTYLE MODERATE 460 TRUST ------------------------------------------------------------- SERIES I ------------------------------------------------------------- YEARS ENDED DECEMBER 31, ------------------------------------------------------------- 2003 2002 2001 2000 1999 ------------ ---------- ---------- ---------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.22 $ 12.11 $ 13.01 $ 14.13 $ 13.91 Income from investment operations: Net investment income (loss) ** 0.27 0.40 0.45 0.58 0.41 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.67 (0.88) (0.61) (0.07) 0.65 ------------ ---------- ---------- ---------- --------- Total from investment operations 1.94 (0.48) (0.16) 0.51 1.06 ------------ ---------- ---------- ---------- --------- Less distributions: Dividends from net investment income (0.27) (0.40) (0.45) (0.58) (0.41) Distributions from capital gains (0.06) - (0.10) (1.05) (0.43) Return of capital (0.04) (0.01) (0.19) - - ------------ ---------- ---------- ---------- --------- Total distributions (0.37) (0.41) (0.74) (1.63) (0.84) ------------ ---------- ---------- ---------- --------- NET ASSET VALUE, END OF PERIOD $ 12.79 $ 11.22 $ 12.11 $ 13.01 $ 14.13 ============ ========== ========== ========== ========= TOTAL RETURN (C) 17.83% (4.07%) (1.09%) 4.26% 7.89% Net assets, end of period (000's) $ 461,743 $ 325,608 $ 245,499 $ 182,038 $ 167,500 Ratio of expenses to average net assets *** 0.075% 0.09% 0.10% 0.075% 0.04% Ratio of expenses to average net assets after expense reductions *** 0.075% 0.075% 0.075% 0.05% 0.04% Ratio of net investment income (loss) to average net assets ** 2.15% 3.17% 3.23% 4.37% 2.92% Portfolio turnover rate 46% 113% 84% 86% 109% LIFESTYLE MODERATE 460 TRUST ---------------------------------------- SERIES II SERIES III ------------------------- ----------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003 12/31/2002 12/31/2003 ------------ ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.22 $ 12.07 $ 11.98 Income from investment operations: Net investment income (loss) ** 0.27 0.40 - Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.67 (0.84) 0.81 ------------ ---------- ---------- Total from investment operations 1.94 (0.44) 0.81 ------------ ---------- ---------- Less distributions: Dividends from net investment income (0.27) (0.40) - Distributions from capital gains (0.06) - - Return of capital (0.04) (0.01) - ------------ ---------- ---------- Total distributions (0.37) (0.41) - ------------ ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 12.79 $ 11.22 $ 12.79 ============ ========== ========== TOTAL RETURN (C) 17.83% (3.77%)+ 6.76%+ Net assets, end of period (000's) $ 285,665 $ 74,241 $ 3 Ratio of expenses to average net assets *** 0.075% 0.09%(A) 44.71%(A) Ratio of expenses to average net assets after expense reductions *** 0.075% 0.075%(A) 0.225%(A) Ratio of net investment income (loss) to average net assets ** 1.58% 0.19%(A) (0.14%)(A) Portfolio turnover rate 46% 113% 46%
* Commencement of operations ** Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. *** Does not include expenses of the investment companies in which the Portfolio invests. + Not Annualized (A) Annualized (B) The total return for the years ended 2002, 2001, 2000 and 1999 for Series I, for the year ended 2003 and the period ended December 31, 2002 for Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the years ended 2002, 2001, 2000 and 1999 for Series I, for the period ended December 31, 2002 for Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 93 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
LIFESTYLE CONSERVATIVE 280 TRUST ------------------------------------------------------------ SERIES I ------------------------------------------------------------ YEARS ENDED DECEMBER 31, ------------------------------------------------------------ 2003 2002 2001 2000 1999 ------------ ---------- ---------- ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.72 $ 12.94 $ 13.17 $ 13.15 $ 13.53 Income from investment operations: Net investment income (loss) ** 0.38 0.39 0.55 0.51 0.60 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.03 (0.16) (0.14) 0.41 (0.05) ------------ ---------- ---------- ---------- ---------- Total from investment operations 1.41 0.23 0.41 0.92 0.55 ------------ ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income (0.39) (0.39) (0.55) (0.51) (0.60) Distributions from capital gains (0.10) (0.04) (0.09) (0.39) (0.33) Return of capital - (0.02) - - - ------------ ---------- ---------- ---------- ---------- Total distributions (0.49) (0.45) (0.64) (0.90) (0.93) ------------ ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 13.64 $ 12.72 $ 12.94 $ 13.17 $ 13.15 ============ ========== ========== ========== ========== TOTAL RETURN (B) 11.47% 1.80% 3.30% 7.62% 4.21% Net assets, end of period (000's) $ 299,278 $ 250,656 $ 174,041 $ 105,627 $ 106,435 Ratio of expenses to average net assets *** 0.079% 0.09% 0.10% 0.08% 0.03% Ratio of expenses to average net assets after expense reductions *** 0.075% 0.075% 0.075% 0.05% 0.03% Ratio of net investment income (loss) to average net assets ** 2.89% 2.62% 3.82% 4.00% 4.40% Portfolio turnover rate 40% 69% 38% 53% 93% LIFESTYLE CONSERVATIVE 280 TRUST ---------------------------------------- SERIES II SERIES III ------------------------ ---------- YEAR ENDED 1/28/2002* 9/5/2003* DECEMBER 31, TO TO 2003 12/31/2002 12/31/2003 ------------ ---------- ---------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.72 $ 12.93 $ 12.95 Income from investment operations: Net investment income (loss) ** 0.38 0.39 - Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.03 (0.15) 0.69 ------------ ---------- ---------- Total from investment operations 1.41 0.24 0.69 ------------ ---------- ---------- Less distributions: Dividends from net investment income (0.39) (0.39) - Distributions from capital gains (0.10) (0.04) - Return of capital - (0.02) - ------------ ---------- ---------- Total distributions (0.49) (0.45) - ------------ ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 13.64 $ 12.72 $ 13.64 ============ ========== ========== TOTAL RETURN (B) 11.46% 1.83%+ 5.33%+ Net assets, end of period (000's) $ 153,654 $ 47,697 $ 101 Ratio of expenses to average net assets *** 0.079% 0.09%(A) 8.73%(A) Ratio of expenses to average net assets after expense reductions *** 0.075% 0.075%(A) 0.225%(A) Ratio of net investment income (loss) to average net assets ** 2.21% 0.25%(A) (0.22%)(A) Portfolio turnover rate 40% 69% 40%
SMALL-MID CAP TRUST ------------------------------------------ SERIES I ------------------------------------------ YEARS ENDED DECEMBER 31, 07/16/2001* -------------------------- TO 2003+++ 2002+++ 12/31/2001+++ ------------ ----------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.85 $ 11.95 $ 12.50 Income from investment operations: Net investment income (loss) (0.03) (0.01) - # Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.31 (2.09) (0.55) ------------ ----------- ------------- Total from investment operations 2.28 (2.10) (0.55) ------------ ----------- ------------- Less distributions: Dividends from net investment income - - # - # ------------ ----------- ------------- Total distributions - - # - # ------------ ----------- ------------- NET ASSET VALUE, END OF PERIOD $ 12.13 $ 9.85 $ 11.95 ============ =========== ============= TOTAL RETURN (C) 23.15% (17.57%) (4.40%)+ Net assets, end of period (000's) $ 103,406 $ 63,945 $ 2,890 Ratio of expenses to average net assets 1.19% 1.83% 3.09%(A) Ratio of expenses to average net assets after expense reductions 1.19% 1.20% 1.20%(A) Ratio of net investment income (loss) to average net assets (0.26%) (0.09%) 0.01%(A) Portfolio turnover rate 18% 6% 33% SMALL-MID CAP TRUST ------------------------------------------------- SERIES II SERIES III ------------------------------ ------------- YEAR ENDED 11/25/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ -------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 9.85 $ 10.28 $ 11.31 Income from investment operations: Net investment income (loss) (0.05) - # (0.02) Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.30 (0.43) 0.84 ------------ -------------- ------------- Total from investment operations 2.25 (0.43) 0.82 ------------ -------------- ------------- Less distributions: Dividends from net investment income - - - ------------ -------------- ------------- Total distributions - - - ------------ -------------- ------------- NET ASSET VALUE, END OF PERIOD $ 12.10 $ 9.85 $ 12.13 ============ ============== ============= TOTAL RETURN (C) 22.84% (4.18%)+ 7.25%+ Net assets, end of period (000's) $ 55,466 $ 10,849 $ 2 Ratio of expenses to average net assets 1.39% 2.03%(A) 1.54%(A) Ratio of expenses to average net assets after expense reductions 1.39% 1.40%(A) 1.54%(A) Ratio of net investment income (loss) to average net assets (0.44%) (0.18%)(A) (0.40%)(A) Portfolio turnover rate 18% 6% 18%
* Commencement of operations ** Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. *** Does not include expenses of the investment companies in which the Portfolio invests. + Not Annualized # Amount is less than $.01 per share. (A) Annualized (B) The total return for the years ended 2003, 2002, 2001, 2000 and 1999 for Series I, for the year ended 2003 and the period ended December 31, 2002 for Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for the year ended 2002 and the period ended December 31, 2001 for Series I and for the period ended December 31, 2002 for Series II would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 94 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
INTERNATIONAL EQUITY SELECT TRUST ---------------------------------------- SERIES I ---------------------------------------- YEARS ENDED DECEMBER 31, 07/16/2001* ------------------------ TO 2003+++ 2002+++ 12/31/2001+++ --------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.62 $ 12.02 $ 12.50 Income from investment operations: Net investment income (loss) 0.18 (0.02) - # Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.79 (1.38) (0.48) --------- ------------- ------------- Total from investment operations 2.97 (1.40) (0.48) --------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 13.59 $ 10.62 $ 12.02 ========= ============= ============= TOTAL RETURN (B) 27.97% (11.65%) (3.84%)+ Net assets, end of period (000's) $ 76,708 $ 49,507 $ 2,897 Ratio of expenses to average net assets 1.26% 1.95% 3.27%(A) Ratio of expenses to average net assets after expense reductions 1.20% 1.20% 1.20%(A) Ratio of net investment income (loss) to average net assets 1.56% (0.15%) 0.06%(A) Portfolio turnover rate 9% 5% 7% INTERNATIONAL EQUITY SELECT TRUST --------------------------------------------- SERIES II SERIES III --------------------------- ------------- YEAR ENDED 11/25/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.62 $ 10.85 $ 11.62 Income from investment operations: Net investment income (loss) 0.11 (0.01) (0.01) Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.83 (0.22) 1.98 ------------ ------------- ------------- Total from investment operations 2.94 (0.23) 1.97 ------------ ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 13.56 $ 10.62 $ 13.59 ============ ============= ============= TOTAL RETURN (B) 27.68% (2.12%)+ 16.95%+ Net assets, end of period (000's) $ 40,650 $ 8,266 $ 1 Ratio of expenses to average net assets 1.46% 2.15%(A) 1.61%(A) Ratio of expenses to average net assets after expense reductions 1.40% 1.40%(A) 1.55%(A) Ratio of net investment income (loss) to average net assets 0.99% (1.12%)(A) (0.31%)(A) Portfolio turnover rate 9% 5% 9%
HIGH GRADE BOND TRUST --------------------------------------- SERIES I --------------------------------------- YEARS ENDED DECEMBER 31, 07/16/2001* ------------------------ TO 2003+++ 2002+++ 12/31/2001+++ --------- ------------ ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.77 $ 12.48 $ 12.50 Income from investment operations: Net investment income (loss) 0.36 0.48 0.26 Net realized and unrealized gain (loss) on investments and foreign currency transactions (0.19) 0.90 0.14 --------- ------------ ------------- Total from investment operations 0.17 1.38 0.40 --------- ------------ ------------- Less distributions: Dividends from net investment income (0.01) (0.07) (0.26) Distributions from capital gains - (0.02) (0.16) --------- ------------ ------------- Total distributions (0.01) (0.09) (0.42) --------- ------------ ------------- NET ASSET VALUE, END OF PERIOD $ 13.93 $ 13.77 $ 12.48 ========= ============ ============= TOTAL RETURN (C) 1.20% 11.01% 3.21%+ Net assets, end of period (000's) $ 115,165 $ 77,953 $ 3,254 Ratio of expenses to average net assets 0.80% 1.44% 2.72%(A) Ratio of expenses to average net assets after expense reductions 0.80% 0.85% 0.85%(A) Ratio of net investment income (loss) to average net assets 2.61% 3.65% 4.44%(A) Portfolio turnover rate 661% 290% 353% HIGH GRADE BOND TRUST ---------------------------------------------- SERIES II SERIES III --------------------------- ------------- YEAR ENDED 11/25/2002* 9/5/2003* DECEMBER 31, TO TO 2003+++ 12/31/2002+++ 12/31/2003+++ ------------ ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.77 $ 13.61 $ 13.63 Income from investment operations: Net investment income (loss) 0.29 0.04 0.04 Net realized and unrealized gain (loss) on investments and foreign currency transactions (0.15) 0.20 0.26 ------------ ------------- ------------- Total from investment operations 0.14 0.24 0.30 ------------ ------------- ------------- Less distributions: Dividends from net investment income (0.01) (0.06) - Distributions from capital gains - (0.02) - ------------ ------------- ------------- Total distributions (0.01) (0.08) - ------------ ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 13.90 $ 13.77 $ 13.93 ============ ============= ============= TOTAL RETURN (C) 0.99% 1.77%+ 2.20%+ Net assets, end of period (000's) $ 63,688 $ 14,653 $ 7 Ratio of expenses to average net assets 1.00% 1.64%(A) 1.15%(A) Ratio of expenses to average net assets after expense reductions 1.00% 1.05%(A) 1.15%(A) Ratio of net investment income (loss) to average net assets 2.11% 3.37%(A) 1.00%(A) Portfolio turnover rate 661% 290% 661%
+++ Net investment income has been calculated using the average shares method. * Commencement of operations # Amount is less than $.01 per share. + Not Annualized (A) Annualized (B) The total return for the years ended 2003 and 2002 and the period ended December 31, 2001 for Series I, for the year ended 2003 and the period ended December 31, 2002 for Series II and for the period ended December 31, 2003 for Series III would have been lower, had operating expenses not been reduced. (C) The total return for year ended 2002 and the period ended December 31, 2001 for Series I and for the period ended December 31, 2002 for Series II would have been lower, had operating expenses not been reduced. The accompanying notes are an integral part of the financial statements. 95 MANUFACTURERS INVESTMENT TRUST FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
AMERICAN GROWTH TRUST AMERICAN INTERNATIONAL TRUST ------------------------------- ------------------------------- SERIES I SERIES II SERIES I SERIES II ------------- ------------- ------------- ------------- 07/09/2003* 05/05/2003* 07/09/2003* 05/05/2003* TO TO TO TO 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ ------------- ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.94 $ 12.50 $ 13.78 $ 12.50 Income from investment operations: Net investment Income (loss) ** - # - # 0.16 0.14 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.48 2.91 2.74 4.02 ------------ ------------- ------------- ------------- Total from investment operations 1.48 2.91 2.90 4.16 ------------ ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 15.42 $ 15.41 $ 16.68 $ 16.66 ============ ============= ============= ============= TOTAL RETURN 10.62%+ 23.28%+ 21.04%+ 33.28%+ Net assets, end of period (000's) $ 3,389 $ 269,774 $ 2,590 $ 178,069 Ratio of expenses to average net assets *** 0.38%(A) 0.53%(A) 0.39%(A) 0.54%(A) Ratio of net investment income (loss) to average net assets ** 0.04%(A) (0.23%)(A) 3.34%(A) 2.01%(A) Portfolio turnover rate 1% 1% 22% 22%
AMERICAN GROWTH-INCOME TRUST AMERICAN BLUE CHIP INCOME AND GROWTH TRUST ------------------------------- ------------------------------------------ SERIES I SERIES II SERIES I SERIES II ------------- ------------- ------------- ------------- 07/09/2003* 05/05/2003* 07/09/2003* 05/05/2003* TO TO TO TO 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ 12/31/2003+++ ------------- ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 13.78 $ 12.50 $ 13.66 $ 12.50 Income from investment operations: Net investment income (loss) ** 0.10 0.09 - # - # Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.67 2.94 1.80 2.94 ------------- ------------- ------------- ------------- Total from investment operations 1.77 3.03 1.80 2.94 ------------- ------------- ------------- ------------- NET ASSET VALUE, END OF PERIOD $ 15.55 $ 15.53 $ 15.46 $ 15.44 ============= ============= ============= ============= TOTAL RETURN 12.84%+ 24.24%+ 13.18%+ 23.52%+ Net assets, end of period (000's) $ 1,223 $ 182,259 $ 1,282 $ 180,792 Ratio of expenses to average net assets *** 0.38%(A) 0.53%(A) 0.39%(A) 0.54%(A) Ratio of net investment income (loss) to average net assets ** 3.66%(A) 2.08%(A) (0.39%)(A) (0.54%)(A) Portfolio turnover rate 2% 2% - ## - ##
+++ Net investment income has been calculated using the SEC method. * Commencement of operations ** Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. *** Does not include expenses of the investment companies in which the Portfolio invests. # Amount is less than $.01 per share. ## Amount is less than 1%. + Not Annualized (A) Annualized The accompanying notes are an integral part of the financial statements. 96 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) SCIENCE & TECHNOLOGY TRUST
SHARES VALUE ------ ----- COMMON STOCK - 93.98% BIOTECHNOLOGY - 1.49% Biogen Idec, Inc. * 50,100 $ 1,842,678 Cephalon, Inc. * (a) 61,800 2,991,738 Genentech, Inc. * 18,300 1,712,331 MedImmune, Inc. * 124,100 3,152,140 ------------ 9,698,887 BROADCASTING - 2.50% Clear Channel Communications, Inc. 148,710 6,964,089 Univision Communications, Inc., Class A * 24,920 989,075 Viacom, Inc., Class B 188,260 8,354,979 ------------ 16,308,143 BUSINESS SERVICES - 9.52% Accenture, Ltd., Class A * 284,400 7,485,408 BMC Software, Inc. * 148,000 2,760,200 Cadence Design Systems, Inc. * 402,600 7,238,748 Certegy, Inc. 163,100 5,349,680 DST Systems, Inc. * 87,100 3,637,296 First Data Corp. 341,500 14,032,235 Fiserv, Inc. * 304,400 12,026,844 Paychex, Inc. 137,200 5,103,840 SunGuard Data Systems, Inc. * 162,100 4,491,791 ------------ 62,126,042 CABLE AND TELEVISION - 2.67% Comcast Corp.-Special Class A * 185,100 5,789,928 EchoStar Communications Corp., Class A * 135,800 4,617,200 Time Warner, Inc. * 389,200 7,001,708 ------------ 17,408,836 CELLULAR COMMUNICATIONS - 0.71% Vodafone Group PLC, ADR (a) 186,230 4,663,199 ------------ CHEMICALS - 0.33% Cabot Microelectronics Corp. * (a) 43,800 2,146,200 ------------ COMPUTERS & BUSINESS EQUIPMENT - 9.48% CDW Corp. 37,500 2,166,000 Dell, Inc. * 768,500 26,098,260 Hewlett-Packard Company 494,700 11,363,259 International Business Machines Corp. 96,800 8,971,424 Lexmark International, Inc. * 98,700 7,761,768 Network Appliance, Inc. * (a) 69,300 1,422,729 Seagate Technology, Inc. 216,800 4,097,520 ------------ 61,880,960 ELECTRONICS - 2.98% Flextronics International, Ltd. * 252,100 3,741,164 Samsung Electronics Company 18,600 7,040,369 Sanmina-SCI Corp. * 184,200 2,322,762 Synopsys, Inc. * 187,400 6,326,624 ------------ 19,430,919 HEALTHCARE PRODUCTS - 0.74% Johnson & Johnson 94,200 4,866,372 ------------ INTERNET CONTENT - 1.30% Yahoo!, Inc. * 187,950 8,489,702 ------------ INTERNET RETAIL - 1.70% eBay, Inc. * 93,500 6,039,165 InterActiveCorp * 149,142 5,060,388 ------------ 11,099,553 INTERNET SOFTWARE - 7.56% Cisco Systems, Inc. * 1,207,830 29,338,191 Networks Associates, Inc. * (a) 417,200 6,274,688 Symantec Corp. * 161,900 5,609,835 VeriSign, Inc. * 499,600 8,143,480 ------------ 49,366,194 LEISURE TIME - 0.41% International Game Technology 75,100 2,681,070 ------------ PHARMACEUTICALS - 2.25% Bristol-Myers Squibb Company 83,800 2,396,680 Eli Lilly & Company 25,000 1,758,250 Forest Laboratories, Inc. * 81,200 5,018,160 Gilead Sciences, Inc. * 37,300 2,168,622 Merck & Company, Inc. 31,300 1,446,060 Pfizer, Inc. 53,900 1,904,287 ------------ 14,692,059 SEMICONDUCTORS - 20.91% Agere Systems, Inc., Class A * (a) 491,600 1,499,380 Altera Corp. * 111,700 2,535,590 Analog Devices, Inc. 395,400 18,050,010 Applied Materials, Inc. * 594,600 13,348,770 ASML Holding NV * (a) 125,200 2,510,260 Intel Corp. 210,200 6,768,440 Intersil Corp., Class A 147,800 3,672,830 KLA-Tencor Corp. * (a) 149,500 8,771,165 Linear Technology Corp. 94,600 3,979,822 Marvell Technology Group, Ltd. * 61,800 2,344,074 Maxim Integrated Products, Inc. 373,300 18,590,340 Microchip Technology, Inc. 310,500 10,358,280 Novellus Systems, Inc. * 234,800 9,873,340 QLogic Corp. * 155,800 8,039,280 Taiwan Semiconductor Manufacturing Company, Ltd., ADR * 574,128 5,879,071 Texas Instruments, Inc. 372,100 10,932,298 Xilinx, Inc. * 241,800 9,367,332 ------------ 136,520,282 SOFTWARE - 24.32% Adobe Systems, Inc. 382,700 15,040,110 Electronic Arts, Inc. * 37,000 1,767,860 Informatica Corp. * 275,500 2,837,650 Intuit, Inc. * 278,400 14,730,144 Mercury Interactive Corp. * (a) 368,200 17,909,248 Microsoft Corp. 2,104,900 57,968,946 Oracle Corp. * 995,200 13,136,640 Red Hat, Inc. * (a) 434,600 8,157,442 SAP AG * 37,500 6,291,090 SAP AG, ADR 62,600 2,601,656 Siebel Systems, Inc. * 525,300 7,285,911 VERITAS Software Corp. * 297,050 11,038,378 ------------ 158,765,075 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 5.11% Advanced Fibre Communications, Inc. * 123,300 2,484,495 CIENA Corp. * 227,200 1,508,608 Corning, Inc. * 183,700 1,915,991 Crown Castle International Corp. * 170,400 1,879,512 Nokia Oyj, ADR 561,150 9,539,550 Nortel Networks Corp. * 1,062,900 4,496,067 NTL, Inc. * 31,400 2,190,150 QUALCOMM, Inc. 173,500 9,356,855 ------------ 33,371,228 TOTAL COMMON STOCK (Cost: $507,783,037) $613,514,721 ------------
The accompanying notes are an integral part of the financial statements. 97 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 5.98% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $32,649,759 $ 32,649,759 T. Rowe Price Reserve Investment Fund (c) 6,355,593 6,355,593 ------------ $ 39,005,352 REPURCHASE AGREEMENTS - 0.04% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $283,006 on 01/02/2004, collateralized by $230,000 U.S Treasury Bonds, 7.5% due 11/15/2016 (valued at $294,819, including interest). $ 283,000 $ 283,000 ------------ TOTAL INVESTMENTS (SCIENCE & TECHNOLOGY TRUST) (Cost: $547,071,389) $652,803,073 ============
PACIFIC RIM EMERGING MARKETS TRUST
SHARES VALUE ------ ----- COMMON STOCK - 81.48% AUSTRALIA - 4.74% Australia and New Zealand Bank Group Ltd. * 16,464 219,171 BHP Billiton, Ltd. * 66,652 611,763 BHP Steel, Ltd. * 59,690 251,684 Brambles Industries, Ltd. * 11,900 47,309 Coca-Cola Amatil, Ltd. * 18,420 86,406 Coles Myer, Ltd. * 16,850 95,915 Commonwealth Bank of Australia * 17,090 378,960 Foster's Group Ltd. * 28,080 95,143 General Property Trust * 78,770 177,337 Harvey Norman Holding, Ltd. * 22,990 51,585 Macquarie Airports * (a) 57,350 76,863 Macquarie Bank, Ltd. * 7,790 208,577 National Australia Bank, Ltd. * 27,710 624,884 Newcrest Mining, Ltd. * 4,660 45,438 News Corp., Ltd. * 48,930 441,734 NRMA Insurance Group, Ltd. * 41,130 131,618 Orica, Ltd. * 9,500 99,856 Origin Energy, Ltd. * 11,680 41,774 QBE Insurance Group, Ltd. * (a) 18,870 150,607 Rinker Group Ltd. * 22,320 110,078 Seven Network, Ltd. * 8,970 41,402 Telstra Corp. * 40,270 146,149 Wesfarmers, Ltd. * 5,280 105,313 Westfield Trust * 31,680 84,918 Westpac Banking Corp., Ltd. * 37,390 450,163 Woodside Petroleum, Ltd. * 8,760 97,619 Woolworths, Ltd. * 12,970 115,236 --------- 4,987,502 BERMUDA - 0.01% TPV Technology Ltd. * 14,000 7,348 --------- CAYMAN ISLANDS - 0.01% Hopewell Highway Infrastructure Ltd. * 17,500 9,918 --------- CHINA - 1.64% Beijing Datang Power Generation Company, Ltd., Class H (a) 154,000 110,089 China Life Insurance Company, Ltd. * 142,000 116,142 China Petroleum & Chemical Corp., Class H * 294,000 131,592 China Pharmaceutical Group, Ltd. * (a) 46,000 14,664 China Shipping Development Company, Ltd., Class H 92,000 67,545 China Telecom Corp., Ltd. * 350,000 143,133 Harbin Power Equipment Company Ltd. 68,000 19,926 Jiangsu Expressway 80,000 42,763 PetroChina Company, Ltd., Class H * (a) 1,328,000 761,179 Sinopec Shanghai Petrochemical Company, Ltd., H Shares * (a) 140,000 62,212 Tong Ren Tang Technologies Company, Ltd. 16,000 28,131 Tsingtao Brewery Company, Ltd., Series H 38,000 44,540 Yanzhou Coal Mining Company, Ltd., Class H * (a) 112,000 113,244 Zhejiang Expressway Company, Ltd., Class H * (a) 106,000 74,410 --------- 1,729,570 HONG KONG - 7.02% Anhui Conch Cement Company, Ltd., Series H (a) 22,000 28,478 Bank of East Asia * 57,800 177,188 BOC Hong Kong Holdings, Ltd. * (a) 126,000 236,947 Brilliance China Automotive Holdings, Ltd. * (a) 24,000 13,215 Cathay Pacific Airways, Ltd. * 44,000 83,594 Cheung Kong Holdings, Ltd. * 79,000 625,793 Cheung Kong Infrastructure Holdings, Ltd. * (a) 24,000 53,325 China Merchants Holdings International Company, Ltd. * (a) 66,000 86,711 China Mobile (Hong Kong), Ltd. * 338,500 1,037,681 China Resources Enterprises, Ltd. * (a) 70,000 79,343 China Unicom, Ltd. * (a) 74,000 69,103 Citic Pacific, Ltd. * (a) 69,000 174,638 CLP Holdings, Ltd. * (a) 91,200 433,461 CNOOC, Ltd. * 118,500 232,764 Cosco Pacific, Ltd. * (a) 114,000 149,773 Esprit Holdings, Ltd. * 21,500 71,447 Hang Lung Development Company * 25,000 31,235 Hang Lung Properties, Ltd. * (a) 28,000 35,885 Hang Seng Bank, Ltd. * 35,200 462,457 Henderson Land Development * 32,000 141,375 Hong Kong & China Gas Company, Ltd. * 109,700 167,438 Hong Kong Electric Holdings, Ltd. * (a) 47,400 187,433 Hong Kong Exchange & Clearing, Ltd. * (a) 42,000 90,884 Huaneng Power International, Inc., Class H 173,000 299,707 Hutchison Whampoa, Ltd. * (a) 114,000 836,967 Hysan Development Company, Ltd. * (a) 18,000 27,822 Johnson Electronic Holdings, Ltd. * 64,500 81,832 Legend Group, Ltd. * (a) 210,000 89,937 Li & Fung, Ltd. * 69,000 118,203 Shanghai Industrial Holdings, Ltd. * (a) 51,000 115,943 Shun Tak Holdings, Ltd. * 198,000 73,959 Sun Hung Kai Properties, Ltd. * 70,000 577,041 Swire Pacific, Ltd., Class A * 41,000 252,430 Television Broadcast, Ltd. * 14,000 70,687 Wharf Holdings Ltd. * (a) 64,000 177,234 --------- 7,391,930 JAPAN - 47.24% Amada Company, Ltd. * (a) 165,000 859,383 Asahi Glass Company * (a) 93,000 763,896 Bridgestone Corp. * 56,000 753,218 Canon, Inc. * (a) 25,000 1,164,419 Credit Saison Company, Ltd. * (a) 28,000 632,473 Dainippon Ink & Chemicals, Inc. * (a) 318,000 605,516 Daiwa Securities Group, Inc. (a) 149,000 1,013,870
The accompanying notes are an integral part of the financial statements. 98 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- JAPAN - CONTINUED Dentsu, Inc. * (a) 52 $ 262,099 Fanuc, Ltd. * 6,800 407,486 Gunze, Ltd. * 80,000 362,160 Hitachi, Ltd. * (a) 80,000 482,382 Honda Motor Company * (a) 29,600 1,315,126 Hosiden Corp. * (a) 66,000 752,807 Hoya Corp. * 13,900 1,276,670 Japan Medical Dynamic Marketing, Inc. * (a) 59,700 682,620 Japan Securities Finance Company, Ltd. * 149,000 783,003 JSR Corp. * (a) 93,000 2,079,012 Keyence Corp. * (a) 6,300 1,328,389 Komatsu * 94,000 596,630 Kuraray Company * (a) 122,000 1,029,430 Marui Company, Ltd. * 113,700 1,432,725 Matsushita Electric Industrial Company, Ltd. * (a) 45,000 622,486 Mitsubishi Corp. * (a) 120,000 1,272,413 Mitsubishi Estate Company, Ltd. * (a) 139,000 1,318,187 Mitsui Sumitomo Insurance Company, Ltd. *(a) 231,000 1,897,419 Mizuho Financial Group, Inc. * (a) 265 803,892 Mori Seiki Company * (a) 53,000 363,607 NEC Corp. * (a) 58,000 427,143 Nikko Cordial Corp. * (a) 86,000 479,227 Nippon Sanso Corp. * (a) 357,000 1,509,507 Nippon Steel Corp. (a) 427,000 916,694 Nippon Telegraph & Telephone Corp. * 110 530,826 NTT DoCoMo, Inc. * 390 884,585 Obayashi Corp. * 97,000 433,686 Oji Paper Company * (a) 67,000 432,762 Orix Corp. * (a) 9,700 802,184 Promise Company, Ltd. * 16,900 736,669 Rengo Company, Ltd. * (a) 234,000 899,874 Sekisui House, Ltd. * (a) 127,000 1,312,260 SFCG Company, Ltd. * (a) 4,100 525,823 Sompo Japan Insurance * (a) 129,000 1,060,802 Sony Corp. * (a) 18,800 651,029 Sumitomo Bakelite Company, Ltd. * (a) 233,000 1,520,204 Sumitomo Heavy Industries, Ltd. * (a) 455,000 1,032,016 Sumitomo Mitsui Financial Group, Inc.* (a) 400 2,131,890 Sumitomo Trust & Banking Company * (a) 166,000 976,152 Suruga Bank * (a) 32,000 205,796 Taihei Dengyo Kaisha, Ltd. * 29,000 87,432 Takeda Chemical Industries, Ltd. * 24,442 969,604 The Bank of Yokohama, Ltd. * (a) 112,000 520,614 THK Company, Ltd. * (a) 60,000 1,220,890 Tokyo Electron, Ltd. * 17,100 1,299,239 Tokyo Seimitsu Company, Ltd. * (a) 15,800 491,100 TonenGeneral Sekiyu KK. * (a) 70,000 579,549 Toyota Industries Corp. * 49,000 1,040,510 TV Asahi Corp. * 430 654,221 UFJ Holdings, Inc. * (a) 110 528,772 ----------- 49,722,378 SOUTH KOREA - 7.09% Cheil Industries, Inc. * 10,000 145,195 Good Morning Securities Company * 62,750 289,656 Hyundai Mobis * 6,500 349,685 Hyundai Motor Company * 9,500 402,644 Kia Motors 15,500 141,796 Kookmin Bank * 12,454 466,698 Korea Electric Power Corp. 7,900 141,889 KT & G Corp. * 8,500 147,671 LG Chemical, Ltd. * 4,300 198,489 LG Electronics, Inc. 7,200 354,108 LG Petrochemical Company, Ltd. * 6,500 151,658 Posco, Ltd. * 2,100 287,285 Samsung Electronics Company * 8,450 3,198,447 Samsung Fire & Marine Insurance Company, Ltd. 4,000 229,962 Samsung SDI Company, Ltd. * 1,200 141,502 Shinhan Financial Group Company, Ltd. 14,500 231,830 Shinsegae Company, Ltd. * 900 219,052 SK Telecom Company, Ltd., ADR * 2,200 367,436 ----------- 7,465,003 MALAYSIA - 0.69% British American Tobacco Malaysia Berhad * 5,000 57,237 Gamuda Berhad * 50,000 83,553 Genting Berhad * 19,000 83,000 Kuala Lumpur Kepong Berhad * 23,000 40,553 Malayan Bank Berhad * 80,500 204,427 Petronas Gas Berhad * 4,000 7,947 Public Bank Berhad 115,000 93,816 Resorts World Berhad * 31,000 82,395 The New Straits Times Press Berhad 36,000 38,463 UMW Holdings Berhad * 25,333 40,333 ----------- 731,724 SINGAPORE - 1.97% CapitaLand, Ltd. (a) 41,000 37,420 City Developments, Ltd. 18,600 66,260 DBS Group Holdings, Ltd. * 36,000 311,606 Haw Par Corp., Ltd. * 2,297 6,032 Keppel Corp., Ltd. * 26,000 93,388 Overseas-Chinese Banking Corp., 41,000 292,116 Ltd. * Singapore Airlines, Ltd. * 39,800 262,474 Singapore Exchange, Ltd. * (a) 95,000 94,536 Singapore Press Holdings, 13,600 151,351 Ltd. * Singapore Technologies Engineering, 98,000 117,718 Ltd. Singapore Telecommunications, Ltd. 95,000 109,639 United Overseas Bank * 56,208 436,875 Venture Corp., Ltd. 8,000 94,212 ----------- 2,073,627 TAIWAN - 7.33% Acer Sertek, Inc. 104,280 155,115 Advanced Semiconductor Engineering, Inc. * 154,440 158,762 Ambit Microsystems Corp. 7,700 20,299 Asia Optical Company Inc. 12,000 82,710 Asustek Computer, Inc. 88,593 195,713 Cathay Financial Holdings Company, Ltd. 77,051 115,747 China Development Financial Holdings Corp. 484,981 237,134 China Motor Company 38,950 66,542 China Steel Corp. 543,843 451,734 Chinatrust Finance Holding Company, Ltd. 570,202 572,721 Compal Electronics, Inc. 147,315 201,772 Compeq Manufacturing Company, Ltd. * 38,000 20,035 Cybertan Technology Inc. 72,000 103,069 Elan Microelectronics Corp. 43,005 38,635 EVA Airways Corp. 98,932 40,360 Evergreen Marine Corp. 103,756 90,462 Far Eastern Textile, Ltd. 167,167 82,229 Formosa Chemicals & Fibre Corp. 160,729 269,854 Formosa Plastic Corp. 441,676 728,538 Fubon Group Company, Ltd. 62,745 60,065 Greatek Electronic 19,000 20,035 Hon Hai Precision Industry Company, Ltd. 146,280 575,210 Lite-On Semiconductor Corp. 4,000 2,993 MediaTek, Inc. 24,624 231,371 Merry Electronics 20,400 36,053 Novatek Microelectronics Corp., Ltd. 25,000 70,692 Pacific Construction Company, Ltd. * 22,487 3,265 Pou Chen Corp. 76,202 80,803 President Chain Store Corp. 115,102 176,298
The accompanying notes are an integral part of the financial statements. 99 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- TAIWAN - CONTINUED Procomp Informatics Company, Ltd. * 1,075 $ 461 Quanta Computer, Inc. 135,987 334,460 Realtek Semiconductor Corp. 12,480 21,321 SinoPac Holdings Company 202,958 102,824 Sunplus Technology Company, Ltd. 37,125 69,438 Taishin Financial Holdings Company, Ltd. 108,000 79,847 Taiwan Semiconductor Manufacturing Company, Ltd. * 764,834 1,430,544 United Microelectronics Corp. * 576,108 493,807 Yageo Corp. * 88,452 39,341 Yuanta Core Pacific Securities Company 426,175 254,826 ----------- 7,715,085 THAILAND - 3.11% Advanced Info Service * 115,000 245,252 Electricity Generating Public Company, Ltd. * 80,000 193,829 Kasikornbank Public Company Ltd. * 280,000 494,668 PTT Exploration & Production 84,200 569,515 PTT PLC., Ltd. 138,000 644,331 Siam Cement Company * 57,000 397,047 Siam Commercial Bank PLC * 450,000 630,324 Tisco Finance PLC * 134,000 98,076 ----------- 3,273,042 UNITED KINGDOM - 0.63% HSBC Holdings PLC * (a) 36,400 574,336 Tanjong PLC * 31,000 88,105 ----------- 662,441 TOTAL COMMON STOCK (Cost: $77,963,029) $85,769,568 -----------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 17.99% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $18,941,969 $ 18,941,969 ------------ REPURCHASE AGREEMENTS - 0.53% Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.70%, to be repurchased at $553,022 on 01/02/2004, collateralized by $395,000 U.S. Treasury Bonds, 8.50% due 11/15/2020 (valued at $564,109, including interest). $ 553,000 $ 553,000 ------------ TOTAL INVESTMENTS (PACIFIC RIM EMERGING MARKETS TRUST) (Cost: $97,457,998) $105,264,537 ============
The Trust had the following five top industry concentrations at December 31, 2003 (as a percentage of total value of investments): Banking 10.51% Chemicals 7.85% Electronics 6.96% Financial Services 6.88% Industrial Machinery 3.98%
HEALTH SCIENCES TRUST
SHARES VALUE ------ ----- COMMON STOCK - 98.01% BIOTECHNOLOGY - 23.87% Amgen, Inc. * 114,200 7,057,560 Bio-Rad Laboratories, Inc., Class A * 3,500 201,845 Biogen Idec, Inc. * 78,800 2,898,264 Biosphere Medical Inc. * 86,600 345,534 Cephalon, Inc. * 109,900 5,320,259 Discovery Laboratories, Inc. * 14,500 152,105 Exelixis, Inc. * 117,500 831,900 Genentech, Inc. * 37,400 3,499,518 Human Genome Sciences, Inc. * 56,000 742,000 ICOS Corp. * 10,600 437,568 Integra LifeSciences Holdings Corp. * 11,400 326,382 Invitrogen Corp. * 39,300 2,751,000 Martek Biosciences Corp. * 11,200 727,664 Medarex, Inc. * 22,800 142,044 MedImmune, Inc. * 67,000 1,701,800 MGI Pharma, Inc. * 29,300 1,205,695 Millennium Pharmaceuticals, Inc. * 37,500 700,125 Molecular Devices Corp. * 7,400 140,526 Myriad Genetics, Inc. * 19,600 252,056 Nektar Therapeutics * 61,400 835,654 NeoRx Corp. * 36,100 150,176 Neurocrine Biosciences, Inc. * 52,200 2,846,988 Protein Design Labs, Inc. * 56,800 1,016,720 Regeneration Technologies, Inc. * 30,200 330,992 Repligen Corp. * 1,900 8,303 Serologicals Corp. * 7,100 132,060 Transkaryotic Therapies, Inc. * 46,200 721,182 Trimeris, Inc. * 74,600 1,565,108 Tularik, Inc. * 18,600 300,390 Virologic, Inc. * 15,400 57,904 ---------- 37,399,322 DRUGS & HEALTH CARE - 3.55% Biomarin Pharmaceutical, Inc. * 15,300 118,866 CV Therapeutics, Inc. * 30,000 439,800 Decode Genetics, Inc. * 66,700 546,273 Diversa Corp. * 44,900 415,325 ImClone Systems, Inc. * 79,700 3,160,902 Novo Nordisk AS * 3,200 130,215 Yamanouchi Pharmaceutical Company, Ltd. * 24,000 745,975 ---------- 5,557,356 ELECTRICAL EQUIPMENT - 0.15% Wilson Greatbatch Technologies, Inc. * 5,700 240,939 ---------- HEALTHCARE PRODUCTS - 13.56% Advanced Neuromodulation Systems, Inc. * 19,350 889,713 Alcon, Inc. 8,800 532,752 Aspect Medical Systems, Inc. * 58,100 662,921 Biomet, Inc. 7,600 276,716 Boston Scientific Corp. * 98,800 3,631,888 C.R. Bard, Inc. 21,600 1,755,000 Encore Medical Corp. * 42,000 342,300 EPIX Medical, Inc. * 36,550 595,034 Esperion Therapeutics, Inc. * 10,800 373,788 Fischer Imaging Corp. * 58,000 258,100 Fisher Scientific International, Inc. * 25,800 1,067,346 Guidant Corp. 6,000 361,200 Henry Schein, Inc. * 15,100 1,020,458 Johnson & Johnson 39,500 2,040,570 Medtronic, Inc. 22,500 1,093,725 St. Jude Medical, Inc. * 23,200 1,423,320 Stryker Corp. 14,900 1,266,649 Synthes-Stratec, Inc. * 500 494,625 The Medicines Company * 82,600 2,433,396 Urologix, Inc. * 7,500 49,500 Zimmer Holdings, Inc. * 9,700 682,880 ---------- 21,251,881
The accompanying notes are an integral part of the financial statements. 100 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- HEALTHCARE SERVICES - 13.32% AdvancePCS * 18,000 $ 947,880 Caremark Rx, Inc. * 22,100 559,793 HCA, Inc. * 36,700 1,576,632 LabOne, Inc. * 10,900 353,923 Laboratory Corp. of America Holdings * 55,800 2,061,810 Neighborcare, Inc. * 15,200 300,200 Omnicare, Inc. 100,800 4,071,312 Quest Diagnostics, Inc. 9,900 723,789 UnitedHealth Group, Inc. 154,900 9,012,082 Wellpoint Health Networks, Inc., Class A * 13,100 1,270,569 ------------ 20,877,990 INSURANCE - 5.15% Anthem, Inc. * 107,500 8,062,500 ------------ INTERNET CONTENT - 0.19% WebMD Corp. * 33,500 301,165 ------------ LIFE SCIENCES - 1.22% Symyx Technologies, Inc. * 66,300 1,362,465 Waters Corp. * 16,700 553,772 ------------ 1,916,237 MEDICAL-HOSPITALS - 2.22% Community Health Systems, Inc. * 21,800 579,444 Manor Care, Inc. 7,500 259,275 Psychiatric Solutions, Inc. * 4,200 87,780 STAAR Surgical Company * 55,000 619,300 Triad Hospitals, Inc. * 37,500 1,247,625 Universal Health Services, Inc., Class B 12,800 687,616 ------------ 3,481,040 PHARMACEUTICALS - 34.78% Abbott Laboratories, 40,100 1,868,660 Abgenix, Inc. *, 98,900 1,232,294 Able Laboratories, Inc. * 48,700 880,009 Actelion Ltd. * 4,700 507,112 Alexion Pharmaceuticals, Inc. * 28,800 490,176 Alkermes, Inc. * 172,700 2,331,450 Allergan, Inc. 11,200 860,272 AmerisourceBergen Corp. 17,100 960,165 Amylin Pharmaceuticals, Inc. * 29,700 659,934 Angiotech Pharmaceuticals, Inc. * 7,400 340,400 AstraZeneca PLC, ADR 7,600 367,688 Barr Laboratories, Inc. * 13,100 1,008,045 Biocryst Pharmaceuticals, Inc. * 68,000 463,760 Biovail Corp. * 11,500 247,135 Cardinal Health, Inc. 18,900 1,155,924 Cubist Pharmaceuticals, Inc. * 102,800 1,250,048 Eli Lilly & Company 34,500 2,426,385 Forest Laboratories, Inc. * 53,700 3,318,660 Gilead Sciences, Inc. * 131,800 7,662,852 GlaxoSmithkline PLC, ADR 7,600 354,312 Indevus Pharmaceuticals, Inc. * 45,400 267,406 Inspire Pharmaceuticals, Inc. * 14,700 208,152 Ivax Corp. * 56,300 1,344,444 Ligand Pharmaceuticals, Inc., Class A * 8,700 117,450 Ligand Pharmaceuticals, Inc., Class B * 20,870 306,580 Merck & Company, Inc. 7,600 351,120 Novartis AG, ADR 3,600 165,204 Noven Pharmaceuticals, Inc. * 46,100 701,181 Novo Nordisk A/S 400 16,384 NPS Pharmaceuticals, Inc. * 56,300 1,730,662 Onyx Pharmaceuticals, Inc. * 40,700 1,148,961 OSI Pharmaceuticals, Inc. * 37,300 1,201,433 Penwest Pharmaceuticals Company * 14,700 254,016 Pfizer, Inc. 180,980 6,394,024 Regeneron Pharmaceuticals, Inc. * 23,000 338,330 Roche Holding AG-Genusschein * 3,800 383,133 Salix Pharmaceuticals, Ltd. * 19,000 430,730 Sanofi-Synthelabo SA * 19,500 1,466,771 Schering-Plough Corp. 37,900 659,081 Teva Pharmaceutical Industries, Ltd., ADR 42,300 2,398,833 Valeant Pharmaceuticals International * 44,700 1,124,205 Vertex Pharmaceuticals, Inc. * 51,804 529,955 Vicuron Phamaceuticals, Inc. * 7,600 141,740 ViroPharma, Inc. * 28,300 78,674 Watson Pharmaceuticals, Inc. * 3,900 179,400 Wyeth 89,700 3,807,765 XOMA, Ltd. * 57,300 378,180 ------------ 54,509,095 TOTAL COMMON STOCK (Cost: $131,823,527) $153,597,525 ------------ PREFERRED STOCK - 0.03% BIOTECHNOLOGY - 0.03% NeoRx Corp. * 6 $ 45,360 ------------ TOTAL PREFERRED STOCK (Cost: $60,000) $ 45,360 ------------ WARRANTS - 0.00% BIOTECHNOLOGY - 0.00% NeoRx Corp. * 2,400 0 ------------ TOTAL WARRANTS (Cost: $0) $ 0 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 1.68% T. Rowe Price Reserve Investment Fund (c) $2,631,336 $2,631,336 REPURCHASE AGREEMENTS - 0.28% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $432,010 on 01/02/2004, collateralized by $390,000 U.S Treasury Bonds, 6.125% due 11/15/2027 (valued at $442,439, including interest). $ 432,000 $ 432,000 ----------
CALL OPTIONS - 0.00% NUMBER OF EXPIRATION MONTH/ CONTRACTS STRIKE PRICE VALUE --------- ------------ ----- 63 Repligen Corp. January 2004 / $5.00 $ 5,355 ------------ TOTAL OPTIONS (Cost: $3,507) $ 5,355 ============ TOTAL INVESTMENTS (HEALTH SCIENCES TRUST) (Cost: $134,950,370) $156,711,576 ============
The accompanying notes are an integral part of the financial statements. 101 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) EMERGING GROWTH TRUST
SHARES VALUE ------ ----- COMMON STOCK - 76.61% ADVERTISING - 1.07% aQuantive, Inc. * (a) 3,247 $ 33,282 Getty Images, Inc. * 1,870 93,743 -------- 127,025 AIR TRAVEL - 1.23% Airtran Holdings, Inc. * (a) 3,970 47,243 Mesa Air Group, Inc. * (a) 7,870 98,532 -------- 145,775 APPAREL & TEXTILES - 1.39% Brown Shoe, Inc. * 1,790 67,895 Quiksilver, Inc. * 2,800 49,644 Wolverine World Wide, Inc. 2,320 47,281 -------- 164,820 BANKING - 5.62% Bankatlantic Bancorp, Inc., Class A 4,270 81,130 BankUnited Financial Corp., Class A * 2,160 55,707 BOK Financial Corp. * 960 37,171 Commercial Federal Corp. (a) 2,600 69,446 MAF Bancorp, Inc. (a) 2,050 85,895 R & G Financial Corp., Class B 2,730 108,654 Sky Financial Group, Inc. 1,300 33,722 W Holding Company, Inc. 6,257 116,439 Wintrust Financial Corp. (a) 1,740 78,474 -------- 666,638 BIOTECHNOLOGY - 2.86% Applera Corp. - Celera Genomics Group * 4,010 55,779 Exelixis, Inc. * (a) 2,960 20,957 Human Genome Sciences, Inc. * 4,380 58,035 Progress Software Corp. * 4,340 88,797 Protein Design Labs, Inc. * (a) 2,360 42,244 Repligen Corp. * (a) 10,290 44,967 Tanox, Inc. * (a) 1,900 28,215 -------- 338,994 BUSINESS SERVICES - 5.46% Alliance Data Systems Corp. * 3,390 93,835 FactSet Research Systems, Inc. (a) 1,850 70,689 FTI Consulting, Inc. * (a) 1,885 44,053 Labor Ready, Inc. * (a) 3,470 45,457 Navigant Consulting Company * 4,310 81,287 SM&A * 6,790 79,443 Syntel, Inc. (a) 4,040 99,828 Tyler Technologies, Inc. * 7,670 73,862 West Corp. * (a) 2,540 59,004 -------- 647,458 CELLULAR COMMUNICATIONS - 0.35% Western Wireless Corp., Class A * (a) 2,230 40,943 -------- CHEMICALS - 0.56% Cabot Microelectronics Corp. * (a) 1,360 66,640 -------- COLLEGES & UNIVERSITIES - 0.55% ITT Educational Services, Inc. * 1,400 65,758 -------- COMPUTERS & BUSINESS EQUIPMENT - 2.07% Advanced Digital Information Corp. * 6,030 84,420 Electronics For Imaging, Inc. * (a) 3,250 84,565 Intergraph Corp. * (a) 3,200 76,544 -------- 245,529 CRUDE PETROLEUM & NATURAL GAS - 0.64% Patterson-UTI Energy, Inc. * 2,320 76,374 -------- DOMESTIC OIL - 0.97% Denbury Resources, Inc. * (a) 4,780 66,490 Houston Exploration Company * 1,330 48,571 -------- 115,061 DRUGS & HEALTH CARE - 2.89% ALARIS Medical Systems, Inc. * (a) 6,940 105,557 Biomarin Pharmaceutical, Inc. * (a) 2,930 22,763 Bradley Pharmaceuticals, Inc., Class A * (a) 2,930 74,510 Curagen Corp. * (a) 4,990 36,577 ILEX Oncology, Inc. * 3,670 77,988 Praecis Pharmaceuticals, Inc. * 4,000 25,760 -------- 343,155 ELECTRONICS - 1.62% Daktronics, Inc. * 950 23,902 Engineered Support Systems, Inc. (a) 2,445 134,622 Verisity, Ltd. * (a) 2,640 33,660 -------- 192,184 FINANCIAL SERVICES - 1.54% Downey Financial Corp. 1,290 63,597 Jeffries Group, Inc. (a) 1,930 63,728 Nuveen Investments, Inc., Class A 2,060 54,920 -------- 182,245 HEALTHCARE PRODUCTS - 4.15% Advanced Medical Optics, Inc. * (a) 3,890 76,438 IDEXX Laboratories, Inc. * (a) 2,210 102,279 Kensey Nash Corp. * (a) 1,180 27,435 Merit Medical Systems, Inc. * (a) 4,135 92,053 Respironics, Inc. * 1,450 65,381 STERIS Corp. * 1,630 36,838 The Medicines Company * (a) 1,740 51,260 Thoratec Corp. * (a) 3,120 40,591 -------- 492,275 HEALTHCARE SERVICES - 2.17% AMERIGROUP Corp. * (a) 770 32,840 LabOne, Inc. * 3,010 97,735 Sierra Health Services, Inc. * (a) 3,340 91,683 The Advisory Board Company * 1,020 35,608 -------- 257,866 HOTELS & RESTAURANTS - 1.22% Ruby Tuesday, Inc. * (a) 1,920 54,701 Station Casinos, Inc. (a) 2,930 89,746 -------- 144,447 INDUSTRIAL MACHINERY - 0.47% Cummins, Inc. (a) 1,150 56,281 -------- INDUSTRIALS - 0.44% GrafTech International, Ltd. * (a) 3,860 52,110 -------- INSURANCE - 1.40% American Financial Group, Inc. * (a) 2,080 55,037 Protective Life Corp. 1,750 59,220 Stancorp Financial Group, Inc. 830 52,190 -------- 166,447 INTERNET CONTENT - 0.71% Ask Jeeves, Inc. * 4,670 84,620 -------- INTERNET SERVICE PROVIDER - 1.91% Avocent Corp. * 2,150 78,518 Digitas, Inc. * 8,170 76,144 United Online, Inc. * (a) 4,300 72,197 -------- 226,859 INTERNET SOFTWARE - 2.70% Digital River, Inc. * (a) 5,260 116,246 eResearch Technology, Inc. * 1,850 47,027
The accompanying notes are an integral part of the financial statements. 102 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- INTERNET SOFTWARE - CONTINUED F5 Networks, Inc. * 3,180 $ 79,818 Supportsoft Inc. * 5,850 76,928 ---------- 320,019 LEISURE TIME - 2.10% Movie Gallery, Inc. (a) 2,280 42,591 Scientific Games Corp., Class A * (a) 8,430 143,394 Shuffle Master, Inc. * (a) 1,810 62,662 ---------- 248,647 MANUFACTURING - 1.50% Kaydon Corp. * (a) 3,720 96,125 York International Corp. 2,220 81,696 ---------- 177,821 MEDICAL-HOSPITALS - 1.75% Centene Corp. * 400 11,204 Davita, Inc. * 1,720 67,080 Select Medical Corp. 4,240 69,027 VCA Antech, Inc. * 1,960 60,721 ---------- 208,032 METAL & METAL PRODUCTS - 0.33% Quanex Corp. (a) 850 39,185 ---------- MINING - 1.04% Hecla Mining Company * (a) 8,100 67,149 Joy Global, Inc. (a) 2,170 56,746 ---------- 123,895 PETROLEUM SERVICES - 0.82% Grey Wolf, Inc. * (a) 14,360 53,706 Superior Energy Services, Inc. * 4,660 43,804 ---------- 97,510 PHARMACEUTICALS - 1.86% Abgenix, Inc. * (a), 3,680 45,853 Adolor Corp. * 600 12,012 Genta, Inc. * (a) 2,460 25,608 Guilford Pharmaceuticals, Inc. * (a) 5,210 35,324 Indevus Pharmaceuticals, Inc. * (a) 7,690 45,294 XOMA, Ltd. * (a) 8,540 56,364 ---------- 220,455 POLLUTION CONTROL - 0.63% Stericycle, Inc. * 1,590 74,253 ---------- RETAIL TRADE - 4.73% Bombay Company, Inc. * (a) 2,480 20,187 Cash America International, Inc. 4,750 100,605 Claire's Stores, Inc. (a) 4,980 93,823 Hot Topic, Inc. * 2,920 86,023 Pacific Sunwear of California, Inc. * 4,385 92,611 Petco Animal Supplies Inc. * 1,250 38,063 Tuesday Morning Corp. * 1,240 37,510 Urban Outfitters, Inc. * (a) 2,500 92,625 ---------- 561,447 SEMICONDUCTORS - 6.15% 02Micro International, Ltd. * (a) 2,020 45,248 Actel Corp. *, 3,420 82,422 Conexant Systems, Inc. * 6,100 30,317 Integrated Circuit Systems, Inc. * (a) 3,090 88,034 Kulicke & Soffa Industries, Inc. * 4,000 57,520 MEMC Electronic Materials, Inc. * (a) 8,970 86,292 Power Integrations, Inc. * 2,580 86,327 Semtech Corp. * (a) 4,300 97,739 Ultratech, Inc. * (a) 2,820 82,823 Vitesse Semiconductor Corp. * 12,400 72,788 ---------- 729,510 SOFTWARE - 5.76% CIBER, Inc. * (a) 7,330 63,478 Embarcadero Tech, Inc. * (a) 3,660 58,377 Group 1 Software, Inc. * 1,692 29,813 Neoware Systems, Inc. * (a) 6,180 84,666 Packeteer, Inc. * (a) 4,830 82,013 Quality Systems * 2,020 90,072 Serena Software, Inc. * (a) 3,920 71,932 SS&C Technologies, Inc. 1,000 27,950 Verint Systems, Inc. * (a) 2,810 63,394 Websense, Inc. * 3,830 111,989 ---------- 683,684 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 3.63% Aeroflex, Inc. * (a) 6,640 77,622 Arris Group, Inc. * (a) 11,550 83,622 Aspect Communications Corp. * 5,650 89,044 Comtech Telecommunications Corp. * (a) 2,450 70,731 Spectralink Corp. 1,150 22,046 Westell Technologies, Inc., Class A * (a) 13,880 87,583 ---------- 430,648 TELEPHONE - 0.61% Primus Telecommunications Group, Inc. * (a) 7,090 72,176 ---------- TRUCKING & FREIGHT - 1.71% Forward Air Corp. * 1,600 44,000 Old Dominion Freight Lines, Inc. * 2,040 69,523 Oshkosh Truck Corp. 1,740 88,792 ---------- 202,315 TOTAL COMMON STOCK (Cost: $8,431,254) $9,089,101 ----------
PRINCIPAL AMOUNT VALUE SHORT TERM INVESTMENTS - 19.77% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $2,345,485 $ 2,345,485 ----------- REPURCHASE AGREEMENTS - 3.62% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at $429,017 on 01/02/2004, collateralized by $310,000 U.S. Treasury Bonds, 8.500% due 02/15/2020 (valued at $442,719 including interest). $ 429,000 $ 429,000 ----------- TOTAL INVESTMENTS (EMERGING GROWTH TRUST) (Cost: $11,205,739) $11,863,586 ===========
AGGRESSIVE GROWTH TRUST
SHARES VALUE ------ ----- COMMON STOCK - 81.96% ADVERTISING - 1.36% aQuantive, Inc. * (a) 48,000 $ 492,000 DoubleClick, Inc. * (a) 51,200 523,264 Getty Images, Inc. * 54,400 2,727,072 Lamar Advertising Company * 29,900 1,115,868 ----------- 4,858,204 AIR TRAVEL - 0.14% Frontier Airlines, Inc. * 35,500 506,230 -----------
The accompanying notes are an integral part of the financial statements. 103 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- APPAREL & TEXTILES - 0.40% Bebe Stores, Inc. * (a) 16,800 $ 436,632 Jos. A. Bank Clothiers, Inc. * (a) 14,000 485,660 Quiksilver, Inc. * 28,200 499,986 ----------- 1,422,278 AUTO PARTS - 0.93% Gentex Corp. 56,500 2,495,040 Lear Corp. 13,200 809,556 ----------- 3,304,596 BANKING - 3.22% Digital Insight Corp. * 22,300 555,270 Doral Financial Corp. 33,600 1,084,608 East West Bancorp, Inc. 15,200 815,936 Greater Bay Bancorp (a) 16,300 464,224 Investors Financial Services Corp. (a) 89,800 3,449,218 New York Community Bancorp, Inc. 24,500 932,225 PrivateBankcorp, Inc. (a) 11,900 541,688 Prosperity Bancshares, Inc. (a) 23,000 517,960 Silicon Valley Bancshares * (a) 20,600 743,042 Southwest BanCorp of Texas, Inc. 33,400 1,297,590 TCF Financial Corp. 7,100 364,585 UCBH Holdings, Inc. 18,600 724,842 ----------- 11,491,188 BIOTECHNOLOGY - 1.78% Affymetrix, Inc. * (a) 19,300 474,973 Cephalon, Inc. * (a) 6,600 319,506 Charles River Laboratories International, Inc. * 19,400 666,002 Ciphergen Biosystems, Inc. * (a) 35,200 395,648 Digene Corp. * (a) 20,500 822,050 Harvard Bioscience, Inc. * 49,000 436,100 Integra LifeSciences Holdings Corp. * 20,500 586,915 Invitrogen Corp. * 26,700 1,869,000 Martek Biosciences Corp. * (a) 12,300 799,131 ----------- 6,369,325 BROADCASTING - 1.83% Belo Corp., Class A 34,800 986,232 Cox Radio, Inc., Class A * 19,200 484,416 Cumulus Media, Inc., Class A * 24,000 528,000 Entercom Communications Corp. * 12,500 662,000 Entravision Communications Corp., Class A * 44,000 488,400 Radio One, Inc., Class A * 22,600 441,830 Radio One, Inc., Class D * 33,500 646,550 Univision Communications, Inc., Class A * 31,155 1,236,542 Westwood One, Inc. * 31,000 1,060,510 ----------- 6,534,480 BUILDING MATERIALS & CONSTRUCTION - 0.14% Trex Company, Inc. * (a) 13,400 508,932 ----------- BUSINESS SERVICES - 8.46% Administaff, Inc. * (a) 40,000 695,200 Affiliated Computer Services, Inc., Class A * 31,100 1,693,706 Alliance Data Systems Corp. * 93,200 2,579,776 Arbitron, Inc. * 12,200 508,984 Charles River Associates, Inc. * 17,500 559,825 Corporate Executive Board Company * 48,800 2,277,496 CoStar Group, Inc. * 38,700 1,613,016 DST Systems, Inc. * 12,900 538,704 Euronet Worldwide, Inc. * (a) 49,600 892,800 Fiserv, Inc. * 80,900 3,196,359 Forrester Research, Inc. * 25,100 448,537 Insight Enterprises, Inc. * 41,000 770,800 Iron Mountain, Inc. * 46,350 1,832,679 Jacobs Engineering Group, Inc. * 39,800 1,910,798 Kroll, Inc. * 17,800 462,800 Moody's Corp. 21,500 1,301,825 Moore Wallace, Inc. * 49,800 932,754 Paychex, Inc. 42,200 1,569,840 PDI, Inc. * 19,900 533,519 Robert Half International, Inc. * 75,000 1,750,500 Scansource, Inc. * (a) 14,200 647,804 Sirva, Inc. * 27,200 531,488 SunGuard Data Systems, Inc. * 63,100 1,748,501 TETRA Technologies, Inc. * 30,000 745,800 Wireless Facilities, Inc. * (a) 31,500 468,090 ----------- 30,211,601 CABLE AND TELEVISION - 0.13% TiVo, Inc. * (a) 63,000 466,200 ----------- CHEMICALS - 0.47% Techne Corp. * 18,900 714,042 Valspar Corp. 19,700 973,574 ----------- 1,687,616 COLLEGES & UNIVERSITIES - 1.02% Apollo Group, Inc., Class A * 31,825 2,164,100 Corinthian Colleges, Inc. * 12,800 711,168 University of Phoenix Online * 10,900 751,337 ----------- 3,626,605 COMPUTERS & BUSINESS EQUIPMENT - 4.16% Anteon International Corp. * 18,800 677,740 Applied Films Corp. * 36,900 1,218,438 CACI International, Inc., Class A * 41,800 2,032,316 CDW Corp. 50,700 2,928,432 Cognizant Technology Solutions Corp., Class A * 16,200 739,368 Cray, Inc. * (a) 41,000 407,130 Electronics For Imaging, Inc. * 25,100 653,102 Fair Isaac Corp. 6,900 339,204 Kronos, Inc. * 9,600 380,256 Lexar Media, Inc. * 36,700 639,681 M-Systems Flash Disk Pioneers, Ltd. * (a) 26,400 456,192 National Instruments Corp. (a) 31,000 1,409,570 NetScreen Technologies, Inc. * 23,600 584,100 Pinnacle Systems, Inc. * 46,600 397,498 Sandisk Corp. * 6,500 397,410 Stratasys, Inc. * 15,500 422,530 Tech Data Corp. * 17,800 706,482 Tripath Technology, Inc. * (a) 66,000 455,400 ----------- 14,844,849 CONSTRUCTION & MINING EQUIPMENT - 0.48% National Oilwell, Inc. * 76,400 1,708,304 ----------- COSMETICS & TOILETRIES - 0.08% Steiner Leisure, Ltd. * 20,300 290,290 ----------- CRUDE PETROLEUM & NATURAL GAS - 2.06% Chesapeake Energy Corp. (a) 37,600 510,608 Newfield Exploration Company * 39,900 1,777,146 Patterson-UTI Energy, Inc. * 82,100 2,702,732 Quicksilver Resources, Inc. * (a) 16,500 532,950 Spinnaker Exploration Company * 24,100 777,707 XTO Energy, Inc. 36,800 1,041,440 ----------- 7,342,583 DOMESTIC OIL - 0.30% Evergreen Resources, Inc. * 19,200 624,192 TETRA Technologies, Inc. * 18,850 456,924 ----------- 1,081,116
The accompanying notes are an integral part of the financial statements. 104 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- DRUGS & HEALTH CARE - 0.40% Closure Medical Corp. * (a) 20,100 $ 681,993 Genencor International, Inc. * 23,000 362,250 OraSure Technologies, Inc. * (a) 50,000 398,000 ----------- 1,442,243 EDUCATIONAL SERVICES - 0.65% Education Management Corp. * 24,800 769,792 Leapfrog Enterprises, Inc., Class A * (a) 14,300 379,379 Strayer Education, Inc. * 5,400 587,682 Sylvan Learning Systems, Inc. * 20,100 578,679 ----------- 2,315,532 ELECTRICAL EQUIPMENT - 0.43% Tektronix, Inc. 25,500 805,800 Wilson Greatbatch Technologies, Inc. * (a) 17,600 743,952 ----------- 1,549,752 ELECTRONICS - 2.70% Daktronics, Inc. * (a) 22,200 558,552 Engineered Support Systems, Inc. 14,775 813,512 FEI Company * (a) 29,200 657,000 FLIR Systems, Inc. * 21,200 773,800 Harman International, Inc. 13,400 991,332 II-VI, Inc. * 23,000 593,400 Keithley Instruments, Inc. 31,100 569,130 L-3 Communications Holdings, Inc. * 8,300 426,288 Photon Dynamics, Inc. * (a) 25,000 1,006,000 Pixelworks, Inc. * 39,700 438,288 Trimble Navigation, Ltd. * (a) 29,500 1,098,580 TTM Technologies, Inc. * (a) 39,400 665,072 Varian, Inc. * 25,000 1,043,250 ----------- 9,634,204 FINANCIAL SERVICES - 2.80% Affiliated Managers Group, Inc. * (a), 9,200 640,228 Bear Stearns Companies, Inc. 9,600 767,520 Chicago Merchantile Exchange (a) 16,200 1,172,232 Jeffries Group, Inc. 18,600 614,172 Knight Trading Group, Inc. * 27,300 399,672 Legg Mason, Inc. 26,100 2,014,398 Lehman Brothers Holdings, Inc. 31,800 2,455,596 T. Rowe Price Group, Inc. (c) 40,900 1,939,069 ----------- 10,002,887 FOOD & BEVERAGES - 0.60% Performance Food Group Company * 20,000 723,400 Starbucks Corp. * 30,400 1,005,024 SunOpta, Inc. * (a) 45,000 415,350 ----------- 2,143,774 GAS & PIPELINE UTILITIES - 0.11% Ultra Petroleum Corp. * 15,600 384,072 ----------- HEALTHCARE PRODUCTS - 6.41% Advanced Neuromodulation Systems, Inc. * (a) 15,050 691,999 American Medical Systems Holdings, Inc. * 17,100 372,780 Biomet, Inc. 44,100 1,605,681 Bruker BioSciences Corp. * (a) 88,300 401,765 Cyberonics, Inc. * (a) 20,000 640,200 Cytyc Corp. * 49,000 674,240 Diagnostic Products Corp. * 10,000 459,100 Fisher Scientific International, Inc. * 58,600 2,424,282 Gen-Probe, Inc. * (a) 22,000 802,340 ICU Medical, Inc. * (a) 13,300 455,924 Patterson Dental Company * 13,000 834,080 Priority Healthcare Corp., Class B * (a) 24,000 578,640 ResMed, Inc. * (a) 81,400 3,381,356 St. Jude Medical, Inc. * 24,800 1,521,480 STERIS Corp. * 25,700 580,820 The Cooper Companies, Inc. (a) 23,100 1,088,703 Therasense, Inc. * 35,300 716,590 Varian Medical Systems, Inc. * 18,700 1,292,170 VISX, Inc. * 28,500 659,775 Wright Medical Group, Inc. * 16,100 490,084 Zimmer Holdings, Inc. * 38,300 2,696,320 Zoll Medical Corp. * 14,500 514,460 ----------- 22,882,789 HEALTHCARE SERVICES - 2.69% Accredo Health, Inc. * 28,200 891,402 Caremark Rx, Inc. * 65,300 1,654,049 Covance, Inc. * 22,700 608,360 Express Scripts, Inc. * 16,300 1,082,809 ICON PLC, ADR * 19,900 867,640 Odyssey Healthcare, Inc. * 29,700 869,022 Omnicare, Inc. 58,800 2,374,932 Pediatrix Medical Group, Inc. * 11,800 650,062 The Advisory Board Company * 17,900 624,889 ----------- 9,623,165 HOMEBUILDERS - 0.12% Toll Brothers, Inc. * 11,200 445,312 ----------- HOTELS & RESTAURANTS - 2.10% Alliance Gaming Corp. * 31,300 771,545 Kerzner International, Ltd. * 15,300 596,088 Krispy Kreme Doughnuts, Inc. * (a) 12,200 446,520 Mandalay Resort Group 13,300 594,776 P.F. Chang's China Bistro, Inc. * (a) 20,200 1,027,776 Panera Bread Company, Class A * (a) 17,800 703,634 RARE Hospitality International, Inc. * 32,250 788,190 Sonic Corp. * 42,350 1,296,757 Station Casinos, Inc. 22,900 701,427 The Cheesecake Factory, Inc. * (a) 13,400 590,002 ----------- 7,516,715 HOUSEHOLD PRODUCTS - 0.19% Select Comfort Corp. * 26,900 666,044 ----------- INDUSTRIAL MACHINERY - 0.91% AGCO Corp. * 61,100 1,230,554 Cooper Cameron Corp. * 28,300 1,318,780 FMC Technologies, Inc. * 30,300 705,990 ----------- 3,255,324 INDUSTRIALS - 1.30% Fastenal Company (a) 71,200 3,555,728 Rockwell Automation, Inc 30,300 1,078,680 ----------- 4,634,408 INSURANCE - 0.74% HCC Insurance Holdings, Inc. 36,100 1,147,980 Navigators Group, Inc. * (a) 13,100 404,397 ProAssurance Corp. * (a) 13,900 446,885 Radian Group, Inc. 12,900 628,875 ----------- 2,628,137 INTERNET CONTENT - 0.10% CNET Networks, Inc. * 50,000 341,000 ----------- INTERNET RETAIL - 0.22% eBay, Inc. * 12,450 804,146 ----------- INTERNET SERVICE PROVIDER - 1.05% Avocent Corp. * 57,300 2,092,596 eSPEED, Inc., Class A * 28,000 655,480 Netease.Com, Inc., ADR * 8,300 306,270 United Online, Inc. * (a) 41,000 688,390 ----------- 3,742,736
The accompanying notes are an integral part of the financial statements. 105 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- INTERNET SOFTWARE - 1.66% Checkfree Corp. * (a) 32,500 $ 898,625 eResearch Technology, Inc. * (a) 19,500 495,690 Internet Security Systems, Inc. * 31,000 583,730 Interwoven, Inc. * 34,100 431,024 Macromedia, Inc. * 38,000 677,920 Netegrity, Inc. * 51,900 535,089 Networks Associates, Inc. * 32,162 483,716 Safenet Inc. * (a) 31,100 956,947 Symantec Corp. * 24,500 848,925 ----------- 5,911,666 LEISURE TIME - 0.87% Hollywood Entertainment Corp. * 30,900 424,875 Imax Corp. * (a) 63,800 504,658 Penn National Gaming, Inc. * (a) 25,200 581,616 Pixar, Inc. * 11,700 810,693 Shuffle Master, Inc. * (a) 23,100 799,722 ----------- 3,121,564 LIFE SCIENCES - 0.35% PerkinElmer, Inc. * 29,100 496,737 Waters Corp. * 23,200 769,312 ----------- 1,266,049 MANUFACTURING - 1.24% Danaher Corp. * 37,900 3,477,325 Eaton Corp. 8,700 939,426 ----------- 4,416,751 MEDICAL-HOSPITALS - 1.34% AmSurg Corp. * 11,600 439,524 Davita, Inc. * 17,000 663,000 Health Management Associates, Inc., Class A 63,100 1,514,400 Lifepoint Hospitals, Inc. * 27,700 815,765 Triad Hospitals, Inc. * 20,400 678,708 VCA Antech, Inc. * 21,600 669,168 ----------- 4,780,565 MUTUAL FUNDS - 0.14% iShares Nasdaq Biotechnology Index Fund * 7,200 518,040 ----------- OFFICE FURNISHINGS & SUPPLIES - 0.61% Staples, Inc. * 79,400 2,167,620 ----------- PETROLEUM SERVICES - 2.42% Cal Dive International, Inc. * 42,800 1,031,908 ENSCO International, Inc. 62,700 1,703,559 Grey Wolf, Inc. * 100,400 375,496 Gulfmark Offshore, Inc. * (a) 30,000 420,000 Key Energy Services, Inc. * 52,000 536,120 Nabors Industries, Ltd. * 43,500 1,805,250 Pride International, Inc. * 28,900 538,696 Smith International, Inc. * 27,800 1,154,256 Universal Compression Holdings, Inc. * 20,300 531,048 Varco International, Inc. * 26,200 540,506 ----------- 8,636,839 PHARMACEUTICALS - 2.26% aaiPharma, Inc. * (a) 40,199 1,009,799 American Pharmaceutical Partners, Inc. * (a) 20,300 682,080 Angiotech Pharmaceuticals, Inc. * 13,600 625,600 Connetics Corp. * 27,600 501,216 Medicis Pharmaceutical Corp., Class A (a) 43,900 3,130,070 Salix Pharmaceuticals, Ltd. * 18,000 408,060 Taro Pharmaceutical Industries, Ltd., Class A * 26,400 1,702,800 ----------- 8,059,625 PLASTICS - 0.11% Spartech Corp. 16,500 406,560 ----------- POLLUTION CONTROL - 0.27% Stericycle, Inc. * 20,600 962,020 ----------- RETAIL GROCERY - 0.44% United Natural Foods, Inc. * 26,400 948,024 Whole Foods Market, Inc. 9,200 617,596 ----------- 1,565,620 RETAIL TRADE - 6.32% 99 Cents Only Stores * (a) 17,700 481,971 Aeropostale, Inc. * 18,500 507,270 Bed Bath & Beyond, Inc. * 46,600 2,020,110 Best Buy Company, Inc. 44,500 2,324,680 Bombay Company, Inc. * (a) 55,300 450,142 CarMax, Inc. * 44,900 1,388,757 Chico's FAS, Inc. * 42,200 1,559,290 Claire's Stores, Inc. 26,000 489,840 Fossil, Inc. * 20,400 571,404 Fred's, Inc., Class A 49,400 1,530,412 GameStop Corp. * (a) 32,700 503,907 Hot Topic, Inc. * (a) 29,599 871,987 MSC Industrial Direct Company, Inc., Class A * 29,100 800,250 NBTY, Inc. * 23,100 620,466 Pacific Sunwear of California, Inc. * 50,650 1,069,728 Pep Boys - Manny, Moe & Jack * (a) 13,300 304,171 Regis Corp. 19,800 782,496 The Men's Wearhouse, Inc. * 31,600 790,316 Tractor Supply Company * 66,700 2,593,963 Urban Outfitters, Inc. * (a) 27,028 1,001,387 Williams-Sonoma, Inc. * 54,600 1,898,442 ----------- 22,560,989 SANITARY SERVICES - 0.19% Waste Connections, Inc. * (a) 17,700 668,529 ----------- SEMICONDUCTORS - 6.34% 02Micro International, Ltd. * 39,500 884,800 Actel Corp. * 29,500 710,950 Altera Corp. * 56,200 1,275,740 Amis Holdings, Inc. * 41,800 764,104 ASE Test, Ltd. * 50,000 748,500 Asyst Technologies, Inc. * 41,000 711,350 Broadcom Corp., Class A * 22,900 780,661 ChipPAC, Inc., Class A * (a) 98,600 748,374 Cymer, Inc. * (a) 21,800 1,006,942 Entegris, Inc. * 43,700 561,545 Exar Corp. * 29,700 507,276 Integrated Circuit Systems, Inc. * 27,400 780,626 Intersil Corp., Class A 47,004 1,168,049 Linear Technology Corp. 37,600 1,581,832 Marvell Technology Group, Ltd. * 20,000 758,600 Micrel, Inc. * 34,000 529,720 Microchip Technology, Inc. 37,875 1,263,510 Microsemi Corp. * 17,000 417,860 Mykrolis Corp. * 61,100 982,488 NVIDIA Corp. * (a) 23,600 548,700 Omnivision Technologies, Inc. * (a) 12,500 690,625 Power Integrations, Inc. * 13,800 461,748 QLogic Corp. * 12,900 665,640 Semtech Corp. * 33,200 754,636 Skyworks Solutions, Inc. * (a) 50,900 442,830 Ultratech, Inc. * 17,400 511,038 Varian Semiconductor Equipment Associates, Inc. * (a) 23,000 1,004,870 Veeco Instruments, Inc. * 15,200 428,640 Xicor, Inc. * (a) 50,800 576,072
The accompanying notes are an integral part of the financial statements. 106 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- SEMICONDUCTORS - CONTINUED Zoran Corp. * (a) 22,100 $ 384,319 ------------ 22,652,045 SOFTWARE - 3.27% Activision, Inc. * 35,100 638,820 Adobe Systems, Inc. 19,700 774,210 Autodesk, Inc. * 25,500 626,790 Avid Technology, Inc. * 11,500 552,000 Business Objects SA, ADR * (a) 16,000 554,720 Cognos, Inc. * 51,700 1,583,054 Electronic Arts, Inc. * 15,900 759,702 Macrovision Corp. * 30,800 695,772 Magma Design Automation, Inc. * (a) 21,100 492,474 Mercury Interactive Corp. * 16,100 783,104 Micromuse, Inc. * 70,500 486,450 Neoware Systems, Inc. * (a) 25,000 342,500 PeopleSoft, Inc. * 35,600 811,680 Red Hat, Inc. * 81,600 1,531,632 Take-Two Interactive Software, Inc. * (a) 14,800 426,388 Websense, Inc. * (a) 21,400 625,736 ------------ 11,685,032 STEEL - 0.11% Gibraltar Steel Corp. 16,000 402,400 ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - 2.36% ADTRAN, Inc. 12,000 372,000 Aeroflex, Inc. * 62,600 731,794 Comverse Technology, Inc. * 87,300 1,535,607 Intrado, Inc. * (a) 24,700 542,165 Plantronics, Inc. * 50,100 1,635,765 Polycom, Inc. * 36,300 708,576 REMEC, Inc. * (a) 49,100 412,931 UTStarcom, Inc. * (a) 67,300 2,494,811 ------------ 8,433,649 TOYS, AMUSEMENTS & SPORTING GOODS - 0.54% Marval Enterprises, Inc. * 66,300 1,929,993 ------------ TRANSPORTATION - 0.64% C. H. Robinson Worldwide, Inc. 28,900 1,095,599 Expeditors International of Washington, Inc. 31,700 1,193,822 ------------ 2,289,421 TOTAL COMMON STOCK (Cost: $233,945,405) $292,701,614 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 15.49% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $55,327,831 $ 55,327,831 ------------ REPURCHASE AGREEMENTS - 2.55% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.85%, to be repurchased at $9,116,430 on 01/02/2004, collateralized by $9,135,000 Federal Home Loan Mortgage Corp., 2.750% due 08/15/2006 (valued at $9,298,407, including interest). $ 9,116,000 $ 9,116,000 ------------ TOTAL INVESTMENTS (AGGRESSIVE GROWTH TRUST) (Cost: $298,389,236) $357,145,445 ============
EMERGING SMALL COMPANY TRUST
SHARES VALUE ------ ----- COMMON STOCK - 81.83% ADVERTISING - 0.61% aQuantive, Inc. * 202,000 $ 2,070,500 DoubleClick, Inc. * 123,300 1,260,126 ----------- 3,330,626 AGRICULTURE - 0.66% Bunge, Ltd. 110,100 3,624,492 ----------- AIR FREIGHT - 0.00% Abx Air, Inc. * 50 215 ----------- AIR TRAVEL - 0.71% SkyWest, Inc. * 214,100 3,879,492 ----------- APPAREL & TEXTILES - 0.41% The Gymboree Corp. * 128,900 2,220,947 ----------- AUTO PARTS - 1.85% Gentex Corp. 121,100 5,347,776 Superior Industries International, Inc. 110,800 4,822,016 ----------- 10,169,792 BANKING - 1.98% East West Bancorp, Inc. 9,800 526,064 Franklin Bank Corp. * 9,000 171,000 Greater Bay Bancorp (a) 83,000 2,363,840 Silicon Valley Bancshares * 72,500 2,615,075 Texas Regional Bancshares, Inc., Class A 9,100 336,700 UCBH Holdings, Inc. 62,200 2,423,934 WFS Financial, Inc. 56,700 2,407,482 ----------- 10,844,095 BIOTECHNOLOGY - 1.42% Integra LifeSciences Holdings Corp. * 45,900 1,314,117 Intermune, Inc. * 228,200 5,285,112 Kosan Biosciences, Inc. * 123,000 1,212,780 ----------- 7,812,009 BROADCASTING - 1.86% Entercom Communications Corp. * 40,000 2,118,400 Entravision Communications Corp., Class A * 399,900 4,438,890 Mediacom Communications Corp., Class A * (a) 125,000 1,083,750 Radio One, Inc., Class A * 27,300 533,715 Radio One, Inc., Class D * 105,600 2,038,080 ----------- 10,212,835 BUSINESS SERVICES - 4.38% BearingPoint, Inc. * 186,300 1,879,767 Brinks Company 131,100 2,964,171 CDI Corp. 41,100 1,346,025 Corporate Executive Board Company * 68,000 3,173,560 Entrust Technologies, Inc. * 500,000 2,040,000 Global Payments, Inc. 40,100 1,889,512 LECG Corp. * 34,000 778,260 MAXIMUS, Inc. * (a) 125,000 4,891,250 NCO Group, Inc. * 100,300 2,283,831 Quest Software, Inc. * 120,000 1,704,000 Resources Connection, Inc. * 40,000 1,092,400 ----------- 24,042,776 CELLULAR COMMUNICATIONS - 0.72% NII Holdings, Inc., Class B * (a) 52,900 3,947,927 ----------- CHEMICALS - 3.53% Cabot Corp. 153,300 4,881,072 FMC Corp. * 100,000 3,413,000
The accompanying notes are an integral part of the financial statements. 107 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- CHEMICALS - CONTINUED Minerals Technologies, Inc. 45,000 $ 2,666,250 NOVA Chemicals Corp. 180,000 4,851,000 Olin Corp. 63,800 1,279,828 Valspar Corp. 46,100 2,278,262 ----------- 19,369,412 COMPUTERS & BUSINESS EQUIPMENT - 4.09% Drexler Technology Corp. * (a) 98,700 1,349,229 Extreme Networks, Inc. * 489,900 3,532,179 Fair Isaac Corp. 37,339 1,835,585 FileNET Corp. * 179,500 4,860,860 Logitech International SA * 65,700 2,794,221 MTS Systems Corp. * 64,100 1,232,643 National Instruments Corp. (a) 150,000 6,820,500 ----------- 22,425,217 CONSTRUCTION & MINING EQUIPMENT - 0.51% Rowan Companies, Inc. * (a) 120,000 2,780,400 ----------- COSMETICS & TOILETRIES - 0.22% Nu Skin Enterprises, Inc., Class A 75,000 1,204,500 ----------- CRUDE PETROLEUM & NATURAL GAS - 1.44% Chesapeake Energy Corp. (a) 189,500 2,573,410 Newfield Exploration Company * 56,900 2,534,326 Spinnaker Exploration Company * 86,600 2,794,582 ----------- 7,902,318 DOMESTIC OIL - 1.62% Oil States International, Inc. * 240,700 3,355,358 Tom Brown, Inc. * 170,600 5,501,850 ----------- 8,857,208 DRUGS & HEALTH CARE - 0.98% ALPHARMA, Inc., Class A * 67,400 1,354,740 Molina Healthcare, Inc. * (a) 96,000 2,422,080 Ventana Medical Systems, Inc. * 39,900 1,572,060 ----------- 5,348,880 EDUCATIONAL SERVICES - 0.35% Leapfrog Enterprises, Inc., Class A * (a) 42,400 1,124,872 Learning Tree International, Inc. * 45,000 782,550 ----------- 1,907,422 ELECTRICAL EQUIPMENT - 2.18% BEI Technologies, Inc. 4,600 92,000 Tektronix, Inc. 267,600 8,456,160 Wilson Greatbatch Technologies, Inc. * (a) 80,300 3,394,281 ----------- 11,942,441 ELECTRONICS - 3.95% Electro Scientific Industries, Inc. * 287,024 6,831,171 FLIR Systems, Inc. * (a) 90,200 3,292,300 Trimble Navigation, Ltd. * (a) 98,100 3,653,244 Varian, Inc. * 188,300 7,857,759 ----------- 21,634,474 FINANCIAL SERVICES - 1.16% Financial Federal Corp. * (a) 70,000 2,138,500 Nelnet, Inc., Class A * (a) 29,700 665,280 Waddell & Reed Financial, Inc., Class A 90,000 2,111,400 Westcorp, Inc. 40,000 1,462,000 ----------- 6,377,180 FOOD & BEVERAGES - 0.28% Performance Food Group Company * (a) 42,200 1,526,374 ----------- HEALTHCARE PRODUCTS - 2.47% American Medical Systems Holdings, Inc. * 50,700 1,105,260 Coherent, Inc. * 106,700 2,539,460 Conceptus, Inc. * (a) 130,600 1,386,972 CTI Molecular Imaging, Inc. * 73,400 1,241,194 STERIS Corp. * 151,300 3,419,380 Thoratec Corp. * (a) 136,200 1,771,962 Varian Medical Systems, Inc. * 30,000 2,073,000 ----------- 13,537,228 HEALTHCARE SERVICES - 1.21% Coventry Health Care, Inc. * 41,400 2,669,886 Sierra Health Services, Inc. * (a) 145,400 3,991,230 ----------- 6,661,116 HOTELS & RESTAURANTS - 1.72% Argosy Gaming Corp. * 138,100 3,589,219 Four Seasons Hotels, Inc. (a) 42,200 2,158,530 Jack In the Box, Inc. * 64,000 1,367,040 Station Casinos, Inc. (a) 75,000 2,297,250 ----------- 9,412,039 HOUSEHOLD APPLIANCES - 0.40% The Toro Company 47,300 2,194,720 ----------- INDUSTRIAL MACHINERY - 1.41% Briggs & Stratton Corp. 17,300 1,166,020 Flowserve Corp. * 164,000 3,424,320 Kennametal, Inc. 79,600 3,164,100 ----------- 7,754,440 INSURANCE - 0.10% Radian Group, Inc. 11,400 555,750 ----------- INTERNET CONTENT - 0.55% Ask Jeeves, Inc. * 103,400 1,873,608 InfoSpace, Inc. * 50,100 1,154,805 ----------- 3,028,413 INTERNET RETAIL - 0.47% NetIQ Corp. * 192,800 2,554,600 ----------- INTERNET SERVICE PROVIDER - 1.37% Avocent Corp. * 172,596 6,303,206 eSPEED, Inc., Class A * 52,100 1,219,661 ----------- 7,522,867 INTERNET SOFTWARE - 2.58% F5 Networks, Inc. * 163,900 4,113,890 Retek, Inc. * 115,000 1,067,200 RSA Security, Inc. * (a) 161,500 2,293,300 Sapient Corp. * 87,500 490,000 Verity, Inc. * 300,400 5,013,676 WebMethods, Inc. * (a) 125,600 1,149,240 ----------- 14,127,306 INVESTMENT COMPANIES - 0.58% American Capital Strategies, Ltd. (a) 107,800 3,204,894 ----------- LEISURE TIME - 0.50% Polaris Industries, Inc. (a) 30,900 2,737,122 ----------- LIFE SCIENCES - 0.44% Pharmaceutical Product Development, Inc. * 89,000 2,400,330 ----------- MANUFACTURING - 1.90% Cuno, Inc. * 44,200 1,990,326 Mettler-Toledo International, Inc. * 180,000 7,597,800 Shaw Group, Inc. * 60,900 829,458 ----------- 10,417,584 MEDICAL-HOSPITALS - 0.65% Select Medical Corp. 218,000 3,549,040 ----------- MOBILE HOMES - 0.11% Winnebago Industries, Inc. (a) 8,400 577,500 -----------
The accompanying notes are an integral part of the financial statements. 108 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- PETROLEUM SERVICES - 2.51% Atwood Oceanics, Inc. * (a) 80,000 $ 2,555,200 Premcor, Inc. * 75,600 1,965,600 Pride International, Inc. * 160,000 2,982,400 Superior Energy Services, Inc. * 303,800 2,855,720 Varco International, Inc. * 165,100 3,406,013 ------------ 13,764,933 PHARMACEUTICALS - 4.14% Adolor Corp. * 117,300 2,348,346 Alkermes, Inc. * (a) 50,000 675,000 Angiotech Pharmaceuticals, Inc. * 51,500 2,369,000 First Horizon Pharmaceutical Corp. * 226,400 2,535,680 Galen Holdings PLC 60,000 3,119,940 NPS Pharmaceuticals, Inc. * (a) 122,000 3,750,280 OSI Pharmaceuticals, Inc. * (a) 131,000 4,219,510 United Therapeutics Corp. * (a) 161,200 3,699,540 ------------ 22,717,296 REAL ESTATE - 1.32% Glenborough Realty Trust, Inc., REIT 30,000 598,500 Jones Lang Lasalle, Inc. * 118,200 2,450,286 MeriStar Hospitality Corp., REIT 481,899 3,137,163 SL Green Realty Corp., REIT 25,000 1,026,250 ------------ 7,212,199 RETAIL TRADE - 3.33% Casual Male Retail Group, Inc. * (a) 146,900 1,019,486 Charming Shoppes, Inc. * (a) 162,100 875,340 Cost Plus, Inc. * 51,000 2,091,000 Fred's, Inc., Class A (a) 93,600 2,899,728 Hot Topic, Inc. * (a) 83,850 2,470,221 J. Jill Group, Inc. * 125,000 1,588,750 NBTY, Inc. * 38,300 1,028,738 Regis Corp. 45,800 1,810,016 Tuesday Morning Corp. * 147,900 4,473,975 ------------ 18,257,254 SANITARY SERVICES - 0.34% Waste Connections, Inc. * (a) 50,000 1,888,500 ------------ SEMICONDUCTORS - 11.88% Actel Corp. *, 83,300 2,007,530 Advanced Energy Industries, Inc. * (a) 220,000 5,731,000 Integrated Circuit Systems, Inc. * 202,200 5,760,678 Integrated Device Technology, Inc. * 343,400 5,896,178 Intersil Corp., Class A 39,600 984,060 Lam Research Corp. * 360,000 11,628,000 Lattice Semiconductor Corp. * 128,500 1,243,880 Micrel, Inc. * (a) 468,700 7,302,346 Pericom Semiconductor Corp. * 103,800 1,106,508 Semtech Corp. * 375,000 8,523,750 Sigmatel, Inc. * 35,900 886,012 Varian Semiconductor Equipment Associates, Inc. * 270,000 11,796,300 Vitesse Semiconductor Corp. * (a) 383,500 2,251,145 ------------ 65,117,387 SOFTWARE - 2.95% Aspen Technology, Inc. * (a) 530,000 5,437,800 Borland Software Corp. * (a) 310,000 3,016,300 Concur Technologies, Inc. * (a) 14,600 141,328 Hyperion Solutions Corp. * 124,400 3,749,416 Informatica Corp. * 240,400 2,476,120 Micromuse, Inc. * 200,000 1,380,000 ------------ 16,200,964 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.16% Advanced Fibre Communications, Inc. * 110,000 2,216,500 Commonwealth Telephone Enterprises, Inc., (CTE) * 54,700 2,064,925 Viasat, Inc. * 109,400 2,093,916 ------------ 6,375,341 TRANSPORTATION - 1.14% C. H. Robinson Worldwide, Inc. 108,800 4,124,608 Expeditors International of Washington, Inc. 56,100 2,112,726 ------------ 6,237,334 TRAVEL SERVICES - 0.01% Ctrip.com International Ltd., ADR * (a) 1,600 54,416 ------------ TRUCKING & FREIGHT - 1.68% Forward Air Corp. * 70,300 1,933,250 Landstar Systems, Inc. * 56,000 2,130,240 Oshkosh Truck Corp. 77,800 3,970,134 Overnite Corp. * 52,800 1,201,200 ------------ 9,234,824 TOTAL COMMON STOCK (Cost: $371,219,966) $448,656,429 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 11.84% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $64,954,221 $ 64,954,221 ------------ REPURCHASE AGREEMENTS - 6.33% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $34,689,771 on 01/02/2004, collateralized by $24,095,000 U.S. Treasury Bonds, 9.250% due 02/15/2006 (valued at $35,389,531, including interest). $34,689,000 $ 34,689,000 ------------ TOTAL INVESTMENTS (EMERGING SMALL COMPANY TRUST) (Cost: $470,863,187) $548,299,650 ============
SMALL COMPANY BLEND TRUST
SHARES VALUE ------ ----- COMMON STOCK - 78.19% AEROSPACE - 0.89% Aviall Inc. * 2,200 $ 34,122 Moog, Inc., Class A * 14,200 701,480 Orbital Sciences Corp., Class A * (a) 129,300 1,554,186 ----------- 2,289,788 AIR TRAVEL - 1.24% Alaska Air Group, Inc. * (a) 62,100 1,694,709 Delta Air Lines, Inc. * (a) 51,200 604,672 Pinnacle Airline Corp. * (a) 64,000 888,960 ----------- 3,188,341 APPAREL & TEXTILES - 0.42% Warnaco Group, Inc. * 68,000 1,084,600 ----------- AUTO PARTS - 0.16% BorgWarner, Inc. 5,000 425,350 ----------- AUTO SERVICES - 0.31% ANC Rental Corp. * (a) 694,000 69 Lithia Motors, Inc., Class A (a) 31,900 804,199 ----------- 804,268
The accompanying notes are an integral part of the financial statements. 109 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- BANKING - 4.98% BOK Financial Corp. * 36,047 $ 1,395,740 Cathay Bancorp, Inc. * 6,800 378,624 Citizens Banking Corp. (a) 59,500 1,946,840 Community First Bankshares, Inc. (a) 20,500 593,270 Cullen Frost Bankers, Inc. 30,700 1,245,499 Digital Insight Corp. * (a) 29,600 737,040 First Community Bancorp 3,000 108,420 First Midwest Bancorp, Inc. 50,250 1,628,602 Franklin Bank Corp. * 7,000 133,000 Greater Bay Bancorp (a) 26,700 760,416 Netbank, Inc. (a) 30,000 400,500 Provident Bankshares Corp. (a) 32,000 942,080 South Financial Group, Inc. 12,400 345,464 Sterling Bancshares, Inc. (a) 42,500 566,525 Umpqua Holdings Corp. * (a) 49,600 1,031,184 Waypoint Financial Corp. 29,085 630,854 ----------- 12,844,058 BIOTECHNOLOGY - 1.25% Exelixis, Inc. * 24,300 172,044 Lexicon Genetics, Inc. * (a) 28,500 167,865 Protein Design Labs, Inc. * (a) 98,500 1,763,150 Tanox, Inc. * (a) 32,400 481,140 Trimeris, Inc. * (a) 30,100 631,498 ----------- 3,215,697 BROADCASTING - 3.17% Citadel Broadcasting Corp. * 15,900 355,683 Cox Radio, Inc., Class A * 10,100 254,823 Emmis Communications Corp., Class A * 32,100 868,305 Entercom Communications Corp. * 18,900 1,000,944 Entravision Communications Corp., Class A * 56,600 628,260 Mediacom Communications Corp., Class A * (a) 201,700 1,748,739 Radio One, Inc., Class A * 33,900 662,745 Radio One, Inc., Class D * 94,900 1,831,570 World Wrestling Entertainment, Inc., Class A 25,400 332,740 Young Broadcasting, Inc., Class A * 25,500 511,020 ----------- 8,194,829 BUSINESS SERVICES - 3.21% ADVO, Inc. 45,800 1,454,608 Arbitron, Inc. * 34,900 1,456,028 CoStar Group, Inc. * 34,700 1,446,296 Kendle International, Inc. * 34,400 218,096 Quest Software, Inc. * 25,700 364,940 Resources Connection, Inc. * (a) 17,800 486,118 StarTek, Inc. 25,000 1,019,750 Synnex Corp. * (a) 28,400 390,784 The BISYS Group, Inc. * 7,800 116,064 West Corp. * (a) 57,900 1,345,017 ----------- 8,297,701 CABLE AND TELEVISION - 0.62% Insight Communications Company, Inc., Class A * (a) 154,300 1,590,833 ----------- CHEMICALS - 4.13% Ferro Corp. 95,300 2,593,113 Lubrizol Corp. * 22,500 731,700 Methanex Corp. 380,800 4,276,384 The Scotts Company, Class A * 51,900 3,070,404 ----------- 10,671,601 COLLEGES & UNIVERSITIES - 0.16% DeVry, Inc. * 16,600 417,158 ----------- COMPUTERS & BUSINESS EQUIPMENT - 2.86% Gateway, Inc. * 363,400 1,671,640 Helix Technology Corp. 41,700 858,186 Ixia * 101,000 1,181,700 National Instruments Corp. (a) 9,600 436,512 NetScreen Technologies, Inc. * 64,500 1,596,375 Overland Storage, Inc. * (a) 49,100 923,080 Pinnacle Systems, Inc. * 84,700 722,491 ----------- 7,389,984 CONSTRUCTION MATERIALS - 0.14% Columbus McKinnon Corp. * 41,000 354,650 ----------- CONTAINERS & GLASS - 0.53% Packaging Corp. of America 62,200 1,359,692 ----------- COSMETICS & TOILETRIES - 0.28% Steiner Leisure, Ltd. * 51,100 730,730 ----------- CRUDE PETROLEUM & NATURAL GAS - 1.78% Cabot Oil & Gas Corp., Class A 15,600 457,860 Helmerich & Payne, Inc. * 42,200 1,178,646 Hydril * 70,800 1,694,244 Patterson-UTI Energy, Inc. * 8,200 269,944 Spinnaker Exploration Company * 30,900 997,143 ----------- 4,597,837 DOMESTIC OIL - 0.17% Noble Energy, Inc. 9,700 430,971 ----------- DRUGS & HEALTH CARE - 1.94% Aclara Biosciences, Inc. * 41,900 152,935 Antigenics, Inc. * (a) 2,100 23,772 Atherogenics, Inc. * (a) 87,900 1,314,105 Chromavision Medical Systems, Inc. * (a) 110,100 351,219 Diversa Corp. * (a) 20,100 185,925 Heska Corp. * 83,000 190,817 ILEX Oncology, Inc. * 34,700 737,375 Illumina, Inc. * 149,055 1,050,838 Qiagen NV * (a) 83,400 997,464 ----------- 5,004,450 ELECTRICAL EQUIPMENT - 2.03% Cable Design Technologies Corp. * (a) 50,000 449,500 Power-One, Inc. * 165,800 1,795,614 Wesco International, Inc. * 33,000 292,050 Wilson Greatbatch Technologies, Inc. * (a) 63,800 2,696,826 ----------- 5,233,990 ELECTRIC UTILITIES - 1.07% Allegheny Energy, Inc. * (a) 115,400 1,472,504 CMS Energy Corp. (a) 152,400 1,298,448 ----------- 2,770,952 ELECTRONICS - 1.53% Electro Scientific Industries, Inc. * (a) 77,700 1,849,260 FEI Company * (a) 82,700 1,860,750 LoJack Corp. * 25,000 201,500 Zygo Corp. * (a) 2,000 32,980 ----------- 3,944,490 ENERGY - 0.51% Energen Corp. 21,100 865,733 New Jersey Resources Corp. 12,000 462,120 ----------- 1,327,853 FINANCIAL SERVICES - 2.45% Americredit Corp. * (a) 205,600 3,275,208 Fulton Financial Corp. 30,892 676,844 Harbor Florida Bancshares, Inc. 12,600 374,346 National Financial Partners Corp. 15,100 416,005 San Juan Basin Royalty Trust (a) 72,600 1,574,694 ----------- 6,317,097
The accompanying notes are an integral part of the financial statements. 110 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- FOOD & BEVERAGES - 2.63% Corn Products International, Inc. 42,300 $ 1,457,235 Del Monte Foods Company * 208,500 2,168,400 International Multifoods Corp. * 57,400 1,033,200 Performance Food Group Company * 17,300 625,741 Robert Mondavi Corp., Class A * 7,400 287,416 Tootsie Roll Industries, Inc. * 33,586 1,209,096 ----------- 6,781,088 FURNITURE & FIXTURES - 0.89% Furniture Brands International, Inc. (a) 78,300 2,296,539 ----------- GAS & PIPELINE UTILITIES - 0.62% South Jersey Industries, Inc. 10,100 409,050 Southwest Gas Corp. 52,500 1,178,625 ----------- 1,587,675 HEALTHCARE PRODUCTS - 1.68% Conceptus, Inc. * (a) 38,500 408,870 CTI Molecular Imaging, Inc. * 134,700 2,277,777 Wright Medical Group, Inc. * 54,400 1,655,936 ----------- 4,342,583 HEALTHCARE SERVICES - 0.50% AMN Healthcare Services, Inc. * (a) 47,294 811,565 The Advisory Board Company * (a) 13,500 471,285 ----------- 1,282,850 HOMEBUILDERS - 0.51% Beazer Homes USA, Inc. (a) 13,400 1,308,644 ----------- HOTELS & RESTAURANTS - 3.62% California Pizza Kitchen, Inc. * (a) 87,800 1,767,414 CEC Entertainment, Inc. * 16,000 758,240 Fairmont Hotels Resorts, Inc. 33,300 903,762 Four Seasons Hotels, Inc. (a) 14,300 731,445 Landry's Restaurants, Inc. * 26,300 676,436 Orient Express Hotels, Ltd. 42,900 704,847 P.F. Chang's China Bistro, Inc. * (a) 27,200 1,383,936 Ruby Tuesday, Inc. * 65,600 1,868,944 Station Casinos, Inc. (a) 18,000 551,340 ----------- 9,346,364 HOUSEHOLD APPLIANCES - 0.45% Libbey, Inc. 40,900 1,164,832 ----------- INDUSTRIAL MACHINERY - 0.63% Cummins, Inc. (a) 22,800 1,115,832 Donaldson Company, Inc. 8,800 520,608 ----------- 1,636,440 INSURANCE - 2.40% Endurance Specialty Holdings, Ltd. (a) 14,700 493,185 First American Corp. 58,000 1,726,660 Max Re Capital, Ltd. 13,000 291,720 Philadelphia Consolidated Holding Corp. * 13,700 668,971 W.R. Berkley Corp. 65,400 2,285,730 Zenith National Insurance Corp. * (a) 22,000 716,100 ----------- 6,182,366 INTERNET CONTENT - 0.65% Alloy, Inc. * (a) 75,500 393,355 CNET Networks, Inc. * (a) 30,800 210,056 InfoSpace, Inc. * (a) 14,200 327,310 ProQuest Company * (a) 25,100 739,195 ----------- 1,669,916 INTERNET RETAIL - 0.18% NetIQ Corp. * 34,900 462,425 ----------- INTERNET SERVICE PROVIDER - 0.23% Earthlink, Inc. * (a) 35,100 351,000 United Online, Inc. * 13,800 231,702 ----------- 582,702 INTERNET SOFTWARE - 0.77% Ariba, Inc. * (a) 160,600 481,800 Matrixone, Inc. * 243,500 1,499,960 ----------- 1,981,760 INVESTMENT COMPANIES - 0.75% American Capital Strategies, Ltd. (a) 51,300 1,525,149 Medallion Financial Corp. 43,500 412,815 ----------- 1,937,964 LEISURE TIME - 1.41% International Speedway Corp., Class A 13,700 611,842 Pixar, Inc. * 5,064 350,885 Polaris Industries, Inc. (a) 14,600 1,293,268 Six Flags, Inc. * 41,900 315,088 Speedway Motorsports, Inc. (a) 37,100 1,072,932 ----------- 3,644,015 LIQUOR - 0.23% Adolph Coors Company, Class B 10,600 594,660 ----------- MANUFACTURING - 1.67% Actuant Corp., Class A * (a) 38,400 1,390,080 AptarGroup, Inc. 65,300 2,546,700 York International Corp. 10,500 386,400 ----------- 4,323,180 MEDICAL-HOSPITALS - 0.50% Lifepoint Hospitals, Inc. * 43,700 1,286,965 ----------- PAPER - 0.91% Boise Cascade Corp. * 35,507 1,166,760 P.H. Glatfelter Company 95,300 1,186,485 ----------- 2,353,245 PETROLEUM SERVICES - 0.50% Key Energy Services, Inc. * 27,800 286,618 Newpark Resources, Inc. * 75,100 359,729 Premcor, Inc. * 15,600 405,600 SEACOR SMIT, Inc. * 5,950 250,078 ----------- 1,302,025 PHARMACEUTICALS - 1.80% American Pharmaceutical Partners, Inc. * (a) 25,400 853,440 Amylin Pharmaceuticals, Inc. * (a) 90,900 2,019,798 NPS Pharmaceuticals, Inc. * (a) 12,700 390,398 Vicuron Phamaceuticals, Inc. * (a) 74,100 1,381,965 ----------- 4,645,601 PUBLISHING - 0.75% American Greetings Corp., Class A * 18,300 400,221 Readers Digest Association, Inc., Class A 105,200 1,542,232 ----------- 1,942,453 RAILROADS & EQUIPMENT - 0.55% Kansas City Southern * 99,400 1,423,408 ----------- REAL ESTATE - 3.78% American Financial Realty Trust, REIT 22,900 390,445 Annaly Mortgage Management, Inc., REIT 116,500 2,143,600 Anthracite Capital, Inc., REIT 107,700 1,192,239 Luminent Mortgage Capital, Inc., REIT 14,900 210,090 MeriStar Hospitality Corp., REIT 116,200 756,462 MFA Mortgage Investments, Inc., REIT 79,000 770,250 Pan Pacific Retail Properties, Inc., REIT 15,500 738,575 SL Green Realty Corp., REIT 59,200 2,430,160 Trammell Crow Company * 84,300 1,116,975 ----------- 9,748,796
The accompanying notes are an integral part of the financial statements. 111 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- RETAIL TRADE - 2.03% American Eagle Outfitters, Inc. * (a) 17,500 $ 287,000 Borders Group, Inc. 30,600 670,752 Christopher & Banks Corp. 26,550 518,521 Gaiam, Inc., Class A * 37,700 224,315 Galyan's Trading, Inc. * (a) 6,100 73,444 Genesco, Inc. * (a) 12,300 186,099 J. Jill Group, Inc. * (a) 40,000 508,400 Petco Animal Supplies Inc. * 58,400 1,778,280 School Specialty, Inc. * (a) 23,000 782,230 Ultimate Electronics, Inc. * (a) 29,000 221,270 ------------ 5,250,311 SEMICONDUCTORS - 8.67% Advanced Energy Industries, Inc. * 79,200 2,063,160 Amis Holdings, Inc. * 16,100 294,308 ASM International NV * (a) 82,600 1,671,824 Credence Systems Corp. * (a) 189,400 2,492,504 Cymer, Inc. * (a) 74,900 3,459,631 Emcore Corp. * 128,400 604,764 Exar Corp. * 34,800 594,384 FormFactor, Inc. * 20,200 399,960 Kulicke & Soffa Industries, Inc. * 145,900 2,098,042 LTX Corp. * 201,500 3,028,545 MKS Instruments, Inc. * (a) 27,800 806,200 Power Integrations, Inc. * 31,200 1,043,952 Rudolph Technologies, Inc. * (a) 26,200 642,948 Sigmatel, Inc. * 6,500 160,420 TranSwitch Corp. * (a) 349,400 803,620 Veeco Instruments, Inc. * (a) 78,100 2,202,420 ------------ 22,366,682 SOFTWARE - 1.05% Callidus Software, Inc. * 4,300 76,067 iPass, Inc. * (a) 26,100 418,383 Moldflow Corp. * 5,300 60,155 Novell, Inc. * 137,800 1,449,656 Sco Group, Inc. * (a) 41,200 700,400 ------------ 2,704,661 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.18% American Tower Corp., Class A * 54,300 587,526 Aspect Communications Corp. * 21,800 343,568 Commonwealth Telephone Enterprises, Inc., (CTE) * 8,700 328,425 Netgear, Inc. * (a) 31,900 510,081 Newport Corp. * (a) 32,000 528,960 Polycom, Inc. * 37,800 737,856 ------------ 3,036,416 TELEPHONE - 0.14% Cincinnati Bell, Inc. * 72,200 364,610 ------------ TIRES & RUBBER - 0.11% Bandag, Inc. 7,000 288,400 ------------ TRANSPORTATION - 0.24% Kirby Corp. * 9,600 334,848 SCS Transportation, Inc. * 16,800 295,344 ------------ 630,192 TRAVEL SERVICES - 0.06% Orbitz, Inc. * (a) 6,700 155,440 ------------ TRUCKING & FREIGHT - 0.27% Central Freight Lines, Inc. * 10,000 177,500 Oshkosh Truck Corp. 6,500 331,695 Overnite Corp. * 8,800 200,200 ------------ 709,395 TOTAL COMMON STOCK (Cost: $178,957,378) $201,821,523 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 18.95% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $48,906,716 $ 48,906,716 ------------ REPURCHASE AGREEMENTS - 2.86% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $7,399,164 on 01/02/2004, collateralized by $5,890,000 U.S. Treasury Bonds, 7.50% due 11/15/2016 (valued at $7,549,926, including interest) $ 7,399,000 $ 7,399,000 ------------ TOTAL INVESTMENTS (SMALL COMPANY BLEND TRUST) (Cost: $235,263,094) $258,127,239 ============
DYNAMIC GROWTH TRUST
SHARES VALUE ------ ----- COMMON STOCK - 86.84% AEROSPACE - 1.76% Alliant Techsystems, Inc. * 62,000 $ 3,581,120 ----------- AIR TRAVEL - 1.49% Southwest Airlines Company * 187,800 3,031,092 ----------- APPAREL & TEXTILES - 2.09% Columbia Sportswear Company * 78,100 4,256,450 ----------- AUTOMOBILES - 0.80% Thor Industries, Inc. 29,000 1,630,380 ----------- BANKING - 1.91% Investors Financial Services Corp. (a) 101,522 3,899,460 ----------- BIOTECHNOLOGY - 2.48% Genzyme Corp. * 54,900 2,708,766 Protein Design Labs, Inc. * 130,900 2,343,110 ----------- 5,051,876 BUSINESS SERVICES - 2.49% Affiliated Computer Services, Inc., Class A * 51,200 2,788,352 Hewitt Associates, Inc. * 76,600 2,290,340 ----------- 5,078,692 CELLULAR COMMUNICATIONS - 1.21% Nextel Partners, Inc., Class A * (a) 183,900 2,473,455 ----------- COAL - 1.49% Peabody Energy Corp. 72,900 3,040,659 ----------- COLLEGES & UNIVERSITIES - 3.18% Corinthian Colleges, Inc. * 66,300 3,683,628 ITT Educational Services, Inc. * 59,500 2,794,715 ----------- 6,478,343
The accompanying notes are an integral part of the financial statements. 112 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- COMPUTERS & BUSINESS EQUIPMENT - 5.44% GTECH Holdings Corp. 131,400 $ 6,502,986 Maxtor Corp. * 414,100 4,596,510 ------------ 11,099,496 CONSTRUCTION & MINING EQUIPMENT - 2.09% Rowan Companies, Inc. * 184,300 4,270,231 ------------ CONTAINERS & GLASS - 2.51% Packaging Corp. of America 233,900 5,113,054 ------------ ELECTRONICS - 4.46% Harman International, Inc. 56,600 4,187,268 Jabil Circuit, Inc. * 100,100 2,832,830 Mentor Graphics Corp. * 142,600 2,073,404 ------------ 9,093,502 FINANCIAL SERVICES - 7.82% Capitalsource Inc. * (a) 95,000 2,059,600 Chicago Merchantile Exchange (a) 17,500 1,266,300 First Marblehead Corp. * 87,900 1,923,252 Friedman Billings Ramsey Group, Inc. 98,100 2,264,148 Investment Technology Group, Inc. * 105,800 1,708,670 LaBranche & Company, Inc. (a) 132,100 1,541,607 Legg Mason, Inc. 46,128 3,560,159 Providian Financial Corp. * 138,800 1,615,632 ------------ 15,939,368 FOOD & BEVERAGES - 3.85% Constellation Brands, Inc., Class A * 59,700 1,965,921 Dean Foods Company * 79,800 2,623,026 Performance Food Group Company * (a) 90,200 3,262,534 ------------ 7,851,481 FURNITURE & FIXTURES - 1.31% Leggett & Platt, Inc. 123,300 2,666,979 ------------ HEALTHCARE PRODUCTS - 1.78% DENTSPLY International, Inc. 80,400 3,631,668 ------------ HEALTHCARE SERVICES - 1.59% Coventry Health Care, Inc. * 50,300 3,243,847 ------------ HOTELS & RESTAURANTS - 2.16% The Cheesecake Factory, Inc. * (a) 99,800 4,394,194 ------------ HOUSEHOLD PRODUCTS - 1.91% Tempur-Pedic International Inc. * 251,000 3,890,500 ------------ INSURANCE - 2.42% Arthur J. Gallagher & Company 100,500 3,265,245 Axis Capital Holdings Ltd. (a) 57,000 1,668,960 ------------ 4,934,205 INTERNET SOFTWARE - 2.35% Symantec Corp. * 138,000 4,781,700 ------------ PETROLEUM SERVICES - 3.72% BJ Services Company * 123,100 4,419,290 Smith International, Inc. * 76,300 3,167,976 ------------ 7,587,266 PHARMACEUTICALS - 5.79% Barr Laboratories, Inc. * 36,600 2,816,370 Celgene Corp. * (a) 86,200 3,880,724 Gilead Sciences, Inc. * 44,900 2,610,486 Mylan Laboratories, Inc. 99,000 2,500,740 ------------ 11,808,320 RETAIL TRADE - 2.36% Chico's FAS, Inc. * 73,400 2,712,130 Regis Corp. 53,100 2,098,512 ------------ 4,810,642 SEMICONDUCTORS - 9.50% Fairchild Semiconductor International, Inc. * 170,900 4,267,373 Integrated Circuit Systems, Inc. * 80,600 2,296,294 Lam Research Corp. * 112,300 3,627,290 Linear Technology Corp. 43,200 1,817,424 Microchip Technology, Inc. 134,300 4,480,248 Novellus Systems, Inc. * 68,300 2,872,015 ------------ 19,360,644 SOFTWARE - 1.46% Mercury Interactive Corp. * (a) 61,400 2,986,496 ------------ STEEL - 0.97% Nucor Corp. 35,200 1,971,200 ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - 3.08% Advanced Fibre Communications, Inc. * 195,000 3,929,250 Sonus Networks, Inc. * (a) 310,900 2,350,404 ------------ 6,279,654 TRUCKING & FREIGHT - 1.37% Swift Transportation, Inc. * 133,300 2,801,966 ------------ TOTAL COMMON STOCK (Cost: $147,883,626) $177,037,940 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 10.71% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $21,844,442 $ 21,844,442 ------------ REPURCHASE AGREEMENTS - 2.45% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $4,990,111 on 01/02/2004, collateralized by $3,975,000 U.S. Treasury Bonds, 7.50% due 11/15/2016 (valued at $5,095,238, including interest). $ 4,990,000 $ 4,990,000 ------------ TOTAL INVESTMENTS (DYNAMIC GROWTH TRUST) (Cost: $174,718,068) $203,872,382 ============
MID CAP STOCK TRUST
SHARES VALUE ------ ----- COMMON STOCK - 83.02% AGRICULTURE - 0.95% Bunge, Ltd. (a) 124,700 $ 4,105,124 ----------- AIR TRAVEL - 1.77% JetBlue Airways Corp. * (a) 71,000 1,882,920 Ryanair Holdings PLC, ADR * (a) 113,500 5,747,640 ----------- 7,630,560 APPAREL & TEXTILES - 1.11% Burberry Group PLC * 731,412 4,771,997 ----------- AUTO PARTS - 2.41% Advance Auto Parts, Inc. * 60,700 4,940,980 Gentex Corp. (a) 123,300 5,444,928 ----------- 10,385,908 BIOTECHNOLOGY - 3.30% Cephalon, Inc. * (a) 80,000 3,872,800
The accompanying notes are an integral part of the financial statements. 113 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- BIOTECHNOLOGY - CONTINUED Genzyme Corp. * 77,600 $ 3,828,784 Human Genome Sciences, Inc. * (a) 224,400 2,973,300 Millennium Pharmaceuticals, Inc. * 190,500 3,556,635 ----------- 14,231,519 BROADCASTING - 2.61% Entercom Communications Corp. * 93,700 4,962,352 Sirius Satellite Radio, Inc. * (a) 1,006,800 3,181,488 XM Satellite Radio Holdings, Inc., Class A * (a) 117,300 3,092,028 ----------- 11,235,868 BUSINESS SERVICES - 7.37% Accenture, Ltd., Class A * 98,500 2,592,520 Alliance Data Systems Corp. * 105,700 2,925,776 Cendant Corp. * 454,600 10,123,942 Global Payments, Inc. 71,600 3,373,792 Moody's Corp. 83,600 5,061,980 Sirva, Inc. * 294,000 5,744,760 The BISYS Group, Inc. * 130,100 1,935,888 ----------- 31,758,658 CELLULAR COMMUNICATIONS - 1.92% Nextel Communications, Inc., Class A * 295,400 8,288,924 ----------- COAL - 0.93% Arch Coal, Inc. 127,800 3,983,526 ----------- COLLEGES & UNIVERSITIES - 2.19% Apollo Group, Inc., Class A * 57,100 3,882,800 Career Education Corp. * 138,900 5,565,723 ----------- 9,448,523 COMPUTERS & BUSINESS EQUIPMENT - 2.65% CDW Corp. 117,300 6,775,248 NetScreen Technologies, Inc. * (a) 159,800 3,955,050 Quanta Computer, Inc., GDR 57,300 704,790 ----------- 11,435,088 CONSTRUCTION MATERIALS - 1.12% Rinker Group Ltd. * 979,248 4,829,479 ----------- CONTAINERS & GLASS - 1.25% Jarden Corp. * (a) 197,100 5,388,714 ----------- CRUDE PETROLEUM & NATURAL GAS - 2.12% Chesapeake Energy Corp. (a) 270,000 3,666,600 EOG Resources, Inc. 54,800 2,530,116 XTO Energy, Inc. 103,400 2,926,220 ----------- 9,122,936 DRUGS & HEALTH CARE - 1.63% Edwards Lifesciences Corp. * (a) 233,600 7,026,688 ----------- EDUCATIONAL SERVICES - 1.30% Education Management Corp. * 180,800 5,612,032 ----------- ELECTRICAL EQUIPMENT - 1.12% American Power Conversion Corp. 198,000 4,841,100 ----------- ELECTRONICS - 1.31% L-3 Communications Holdings, Inc. * 110,100 5,654,736 ----------- FINANCIAL SERVICES - 3.73% Blackrock, Inc., Class A (a) 79,300 4,211,623 Countrywide Financial Corp. 82,800 6,280,380 Federated Investors, Inc., Class B 87,600 2,571,936 Legg Mason, Inc. 38,800 2,994,584 ----------- 16,058,523 FOOD & BEVERAGES - 1.44% Constellation Brands, Inc., Class A * 188,000 6,190,840 ----------- GOLD - 0.75% Kinross Gold Corp. - USD * 405,000 3,235,950 ----------- HEALTHCARE PRODUCTS - 2.96% DENTSPLY International, Inc. 66,100 2,985,737 Guidant Corp. 98,100 5,905,620 Respironics, Inc. * 19,100 861,219 Viasys Healthcare, Inc. * (a) 146,237 3,012,482 ----------- 12,765,058 HEALTHCARE SERVICES - 1.42% Medco Health Solutions, Inc. * 179,800 6,111,402 ----------- HOMEBUILDERS - 4.28% D.R. Horton, Inc. 141,700 6,129,942 Lennar Corp., Class A (a) 54,900 5,270,400 Pulte Homes, Inc. * 75,000 7,021,500 ----------- 18,421,842 INTERNET CONTENT - 0.94% NetFlix, Inc. *(a) 73,900 4,041,591 ----------- METAL & METAL PRODUCTS - 0.89% Precision Castparts Corp. 84,700 3,846,227 ----------- NEWSPAPERS - 0.65% Knight-Ridder, Inc. 36,100 2,793,057 ----------- PHARMACEUTICALS - 5.32% AmerisourceBergen Corp. 55,700 3,127,555 Forest Laboratories, Inc. * 132,300 8,176,140 Ivax Corp. * 263,100 6,282,828 Serono SA ADR 304,600 5,345,730 ----------- 22,932,253 RAILROADS & EQUIPMENT - 0.44% CSX Corp. 52,100 1,872,474 ----------- RETAIL TRADE - 5.52% Aeropostale, Inc. * 53,200 1,458,744 Dicks Sporting Goods, Inc. * (a) 53,500 2,603,310 Michael's Stores, Inc. 172,300 7,615,660 PETsMART, Inc. 254,800 6,064,240 The Gap, Inc. * 260,000 6,034,600 ----------- 23,776,554 SEMICONDUCTORS - 4.53% Altera Corp. * 213,100 4,837,370 Analog Devices, Inc. 85,100 3,884,815 ChipPAC, Inc., Class A * (a) 462,200 3,508,098 MEMC Electronic Materials, Inc. * (a) 480,000 4,617,600 Taiwan Semiconductor Manufacturing Company, Ltd., ADR * 259,308 2,655,314 ----------- 19,503,197 SOFTWARE - 5.30% BEA Systems, Inc. * 293,300 3,607,590 Cognos, Inc. * 80,500 2,464,910 Intuit, Inc. * 101,500 5,370,365 Mercury Interactive Corp. * 96,100 4,674,304 Red Hat, Inc. * (a) 357,100 6,702,767 ----------- 22,819,936 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 5.83% Amdocs, Ltd. * 247,500 5,563,800 American Tower Corp., Class A * 369,800 4,001,236 Corning, Inc. * 622,300 6,490,589 NTL, Inc. * 130,000 9,067,500 ----------- 25,123,125 TOYS, AMUSEMENTS & SPORTING GOODS - 0.58% Mattel, Inc. 128,600 2,478,122 -----------
The accompanying notes are an integral part of the financial statements. 114 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- TRANSPORTATION - 1.38% Expeditors International of Washington, Inc. 157,300 $ 5,923,918 ------------ TOTAL COMMON STOCK (Cost: $291,103,289) $357,645,449 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 12.55% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $54,062,633 $ 54,062,633 ------------ REPURCHASE AGREEMENTS - 4.43% Repurchase Agreement with Dillon Read, dated 12/31/2003 at 0.84%, to be repurchased at $19,099,891 on 01/02/2004, collateralized by $17,409,000 U.S. Treasury Bonds, 6.000% due 02/15/2026 (valued at $19,718,531, including interest). $19,099,000 $ 19,099,000 ------------ TOTAL INVESTMENTS (MID CAP STOCK TRUST) (Cost: $364,264,922) $430,807,082 ============
NATURAL RESOURCES TRUST
SHARES VALUE ------ ----- COMMON STOCK - 86.93% ALUMINUM - 2.83% Alcan Aluminum, Ltd. 39,400 $ 1,849,830 Alcoa, Inc. 87,300 3,317,400 ------------ 5,167,230 CHEMICALS - 2.29% Ashland, Inc. 95,000 4,185,700 ------------ COAL - 1.00% CONSOL Energy, Inc. (a) 70,700 1,831,130 ------------ CRUDE PETROLEUM & NATURAL GAS - 8.62% Anadarko Petroleum Corp. 45,800 2,336,258 Burlington Resources, Inc. 23,000 1,273,740 Devon Energy Corp. 52,600 3,011,876 EOG Resources, Inc. 64,600 2,982,582 Newfield Exploration Company * 34,400 1,532,176 Sunoco, Inc. 29,600 1,514,040 XTO Energy, Inc. 108,800 3,079,040 ------------ 15,729,712 DOMESTIC OIL - 11.88% Amerada Hess Corp. * 12,600 669,942 Canadian Natural Resources, Ltd. 81,700 4,132,572 China Petroleum and Chemical Corp. ADR (a) 54,100 2,402,581 Evergreen Resources, Inc. * (a) 61,000 1,983,110 Kerr-McGee Corp. * 28,200 1,311,018 Nexen, Inc. 94,400 3,427,282 Noble Energy, Inc. 68,300 3,034,569 Suncor Energy, Inc. 72,600 1,825,744 Surgutneftegaz ADR (a) 49,200 1,431,720 Western Oil Sands, Inc. * 64,100 1,463,187 ------------ 21,681,725 GAS & PIPELINE UTILITIES - 1.64% Equitable Resources, Inc. 33,600 1,442,112 Western Gas Resources, Inc. * (a) 32,900 1,554,525 ------------ 2,996,637 GOLD - 5.07% Barrick Gold Corp. 66,300 1,505,673 Gold Fields, Ltd. * 208,300 2,973,446 Placer Dome, Inc. 266,300 4,769,433 ------------ 9,248,552 INTERNATIONAL OIL - 14.15% ConocoPhillips 34,200 2,242,494 EnCana Corp. - CAD 124,866 4,927,586 Lukoil, ADR 32,700 3,041,100 Norsk Hydro ASA ADR 45,100 2,787,180 Petroleo Brasileiro SA, ADR 85,500 2,500,020 Royal Dutch Petroleum Company 65,400 3,426,306 Shell Transport & Trading Company PLC, ADR (a) 58,300 2,625,249 Talisman Energy, Inc. - CAD 75,300 4,283,713 ------------ 25,833,648 METAL & METAL PRODUCTS - 4.22% Companhia Vale Do Rio Doce, SADR 76,400 3,935,364 Companhia Vale Do Rio Doce, ADR 34,243 2,003,216 Vedanta Resources PLC * 266,700 1,751,949 ------------ 7,690,529 MINING - 13.38% Aluminum Corp. China, Ltd. ADR (a) 48,300 3,719,100 Anglo American Platinum Corporation, Ltd. - GBP * 74,400 1,602,990 Anglo American Platinum Corporation, Ltd. - ZAR * 73,400 3,198,174 Compania de Minas Buenaventura SA, ADR 199,800 5,650,344 Freeport-McMoRan Copper & Gold, Inc., Class B * 117,000 4,929,210 Harmony Gold Mining Company, Ltd. (a) 82,000 1,330,860 Impala Platinum Holdings, Ltd. * 20,200 1,751,244 Newmont Mining Corp. 46,000 2,236,060 ------------ 24,417,982 PAPER - 3.14% Abitibi Consolidated, Inc. * 536,400 4,350,204 International Paper Company 32,100 1,383,831 ------------ 5,734,035 PETROLEUM SERVICES - 16.12% BP PLC, ADR 106,100 5,236,035 Exxon Mobil Corp. 141,500 5,801,500 GlobalSantaFe Corp. 50,800 1,261,364 Halliburton Company 61,100 1,588,600 Petro-Canada 52,100 2,576,477 Repsol SA ADR 79,900 1,562,045 Total SA, ADR 66,900 6,188,919 Transocean, Inc. * 99,100 2,379,391 Valero Energy Corp. 61,100 2,831,374 ------------ 29,425,705 STEEL - 2.59% International Steel Group, Inc. * 1,116 43,469 Steel Dynamics, Inc. * (a) 97,100 2,280,879 United States Steel Corp. 68,700 2,405,874 ------------ 4,730,222 TOTAL COMMON STOCK (Cost: $119,417,531) $158,672,807 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 8.38% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $15,306,937 $15,306,937 -----------
The accompanying notes are an integral part of the financial statements. 115 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- REPURCHASE AGREEMENTS - 4.69% Repurchase Agreement with Dillon Read, dated 12/31/2003 at 0.84%, to be repurchased at $8,556,399 on 01/02/2004, collateralized by $8,305,000 U.S. Treasury Bonds, 5.500% due 08/15/2028 (valued at $8,833,401, including interest). $8,556,000 $ 8,556,000 ------------ TOTAL INVESTMENTS (NATURAL RESOURCES TRUST) (Cost: $143,280,468) $182,535,744 ============
ALL CAP GROWTH TRUST
SHARES VALUE ------ ----- COMMON STOCK - 92.74% ADVERTISING - 1.74% Getty Images, Inc. * 4,600 $ 230,598 Lamar Advertising Company * 227,300 8,482,836 Omnicom Group, Inc. * 26,800 2,340,444 ----------- 11,053,878 AEROSPACE - 0.60% Lockheed Martin Corp. 74,400 3,824,160 ----------- AIR TRAVEL - 0.77% Southwest Airlines Company * 303,100 4,892,034 ----------- APPAREL & TEXTILES - 0.23% Coach, Inc. * 37,900 1,430,725 ----------- BANKING - 0.86% Bank of America Corp. 36,600 2,943,738 Northern Trust Corp. 54,900 2,548,458 ----------- 5,492,196 BIOTECHNOLOGY - 1.52% Amgen, Inc. * 75,100 4,641,180 Genzyme Corp. * 102,400 5,052,416 ----------- 9,693,596 BROADCASTING - 4.16% Clear Channel Communications, Inc. 228,400 10,695,972 Univision Communications, Inc., Class A * (a) 162,000 6,429,780 Viacom, Inc., Class B 151,500 6,723,570 Westwood One, Inc. * 75,800 2,593,118 ----------- 26,442,440 BUSINESS SERVICES - 4.05% Accenture, Ltd., Class A * 76,700 2,018,744 Fiserv, Inc. * 303,125 11,976,469 Moody's Corp. 55,000 3,330,250 Robert Half International, Inc. * 205,100 4,787,034 SunGuard Data Systems, Inc. * 131,600 3,646,636 ----------- 25,759,133 CELLULAR COMMUNICATIONS - 1.41% Nextel Communications, Inc., Class A * 137,900 3,869,474 Vodafone Group PLC * 2,071,970 5,122,523 ----------- 8,991,997 COLLEGES & UNIVERSITIES - 0.83% Apollo Group, Inc., Class A * 51,600 3,508,800 Career Education Corp. * 44,000 1,763,080 ----------- 5,271,880 COMPUTERS & BUSINESS EQUIPMENT - 4.03% CDW Corp. (a) 169,200 9,772,992 Dell, Inc. * 284,100 9,648,036 EMC Corp. * 387,200 5,002,624 Western Digital Corp. * 103,800 1,223,802 ----------- 25,647,454 COSMETICS & TOILETRIES - 1.27% The Gillette Company * 94,700 3,478,331 The Procter & Gamble Company 46,100 4,604,468 ----------- 8,082,799 CRUDE PETROLEUM & NATURAL GAS - 0.46% Devon Energy Corp. 51,200 2,931,712 ----------- ELECTRICAL EQUIPMENT - 0.46% Molex, Inc. * (a) 82,900 2,892,381 ----------- ELECTRONICS - 1.51% Agilent Technologies, Inc. * 151,500 4,429,860 Foundry Networks, Inc. * 189,400 5,181,984 ----------- 9,611,844 FINANCIAL SERVICES - 6.45% American Express Company, 170,500 8,223,215 Citigroup, Inc. 151,500 7,353,810 MBNA Corp. 234,900 5,837,265 Merrill Lynch & Company, Inc. 113,700 6,668,505 SLM Corp. 113,700 4,284,216 State Street Corp. (b) 54,900 2,859,192 The Goldman Sachs Group, Inc. 58,800 5,805,324 ----------- 41,031,527 HEALTHCARE PRODUCTS - 5.01% Biomet, Inc. 285,675 10,401,427 Boston Scientific Corp. * 163,800 6,021,288 Guidant Corp. 62,900 3,786,580 Medtronic, Inc. 62,200 3,023,542 St. Jude Medical, Inc. * 36,600 2,245,410 Zimmer Holdings, Inc. * 90,900 6,399,360 ----------- 31,877,607 HEALTHCARE SERVICES - 3.50% AdvancePCS * 82,600 4,349,716 Caremark Rx, Inc. * 151,500 3,837,495 Medco Health Solutions, Inc. * 99,200 3,371,808 UnitedHealth Group, Inc. 82,700 4,811,486 Wellpoint Health Networks, Inc., Class A * 61,100 5,926,089 ----------- 22,296,594 HOTELS & RESTAURANTS - 3.35% Marriott International, Inc., Class A 36,600 1,690,920 McDonald's Corp. 151,500 3,761,745 MGM Mirage * 113,700 4,276,257 Outback Steakhouse, Inc. (a) 91,900 4,062,899 P.F. Chang's China Bistro, Inc. * (a) 51,200 2,605,056 Starwood Hotels & Resorts Worldwide, Inc. * 54,900 1,974,753 Wendy's International, Inc. 75,800 2,974,392 ----------- 21,346,022 INDUSTRIAL MACHINERY - 2.31% Caterpillar, Inc. 51,200 4,250,624 Deere & Company * 61,900 4,026,595 Ingersoll-Rand Company, Class A 94,700 6,428,236 ----------- 14,705,455 INSURANCE - 0.97% Aetna, Inc. 43,500 2,939,730 American International Group, Inc. 48,800 3,234,464 ----------- 6,174,194 INTERNATIONAL OIL - 0.31% Weatherford International, Ltd. * 54,900 1,976,400 -----------
The accompanying notes are an integral part of the financial statements. 116 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- INTERNET CONTENT - 0.67% Yahoo!, Inc. * 93,900 $ 4,241,463 ------------ INTERNET RETAIL - 2.03% Amazon.com, Inc. * 95,500 5,027,120 eBay, Inc. * 75,800 4,895,922 InterActiveCorp * 87,900 2,982,447 ------------ 12,905,489 INTERNET SOFTWARE - 2.18% Cisco Systems, Inc. * 454,600 11,042,234 Juniper Networks, Inc. * (a) 151,500 2,830,020 ------------ 13,872,254 LEISURE TIME - 1.33% Carnival Corp. 75,800 3,011,534 Pixar, Inc. * (a) 31,400 2,175,706 Royal Caribbean Cruises, Ltd. (a) 94,700 3,294,613 ------------ 8,481,853 MANUFACTURING - 1.54% 3M Company 38,300 3,256,649 Danaher Corp. * 36,600 3,358,050 Eaton Corp. 29,300 3,163,814 ------------ 9,778,513 MEDICAL-HOSPITALS - 0.48% Health Management Associates, Inc., Class A (a) 127,500 3,060,000 ------------ OFFICE FURNISHINGS & SUPPLIES - 0.81% Staples, Inc. * 189,400 5,170,620 ------------ PETROLEUM SERVICES - 2.35% BJ Services Company * 88,600 3,180,740 ENSCO International, Inc. 113,500 3,083,795 Nabors Industries, Ltd. * 75,800 3,145,700 Noble Corp. * 75,800 2,712,124 Smith International, Inc. * 68,200 2,831,664 ------------ 14,954,023 PHARMACEUTICALS - 6.46% AmerisourceBergen Corp. 36,000 2,021,400 Cardinal Health, Inc. 60,650 3,709,354 Eli Lilly & Company 91,900 6,463,327 Forest Laboratories, Inc. * 36,600 2,261,880 Gilead Sciences, Inc. * 39,800 2,313,972 Medicis Pharmaceutical Corp., Class A (a) 64,000 4,563,200 Pfizer, Inc. 195,600 6,910,548 Teva Pharmaceutical Industries, Ltd., ADR 170,100 9,646,371 Wyeth 76,400 3,243,180 ------------ 41,133,232 PUBLISHING - 0.51% Gannett Company, Inc. 36,600 3,263,256 ------------ RETAIL GROCERY - 0.94% Sysco Corp. 94,700 3,525,681 Whole Foods Market, Inc. 36,600 2,456,958 ------------ 5,982,639 RETAIL TRADE - 9.37% Bed Bath & Beyond, Inc. * 220,600 9,563,010 Best Buy Company, Inc. 76,100 3,975,464 Chico's FAS, Inc. * 75,800 2,800,810 Dollar General Corp. 112,100 2,352,979 Family Dollar Stores, Inc. 81,600 2,927,808 Lowe's Companies, Inc. 89,600 4,962,944 Nordstrom, Inc. 75,800 2,599,940 The Gap, Inc. * 378,800 8,791,948 The TJX Companies, Inc. 151,500 3,340,575 Tiffany & Company 47,200 2,133,440 Wal-Mart Stores, Inc. 151,500 8,037,075 Walgreen Company 151,500 5,511,570 Williams-Sonoma, Inc. * 74,700 2,597,319 ------------ 59,594,882 SEMICONDUCTORS - 10.57% Analog Devices, Inc. 227,300 10,376,245 Applied Materials, Inc. * 244,300 5,484,535 Broadcom Corp., Class A * 53,000 1,806,770 KLA-Tencor Corp. * 130,000 7,627,100 Lam Research Corp. * 303,100 9,790,130 Linear Technology Corp. 151,500 6,373,605 Marvell Technology Group, Ltd. * 45,700 1,733,401 Maxim Integrated Products, Inc. 130,800 6,513,840 Microchip Technology, Inc. 384,025 12,811,074 Taiwan Semiconductor Manufacturing Company, Ltd., ADR * 183,331 1,877,309 Teradyne, Inc. * 113,700 2,893,665 ------------ 67,287,674 SOFTWARE - 5.12% Intuit, Inc. * 94,700 5,010,577 Mercury Interactive Corp. * 63,600 3,093,504 Microsoft Corp. 644,000 17,735,760 Oracle Corp. * 189,400 2,500,080 VERITAS Software Corp. * 113,700 4,225,092 ------------ 32,565,013 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.60% Avaya, Inc. * 151,500 1,960,410 Corning, Inc. * 303,100 3,161,333 Nortel Networks Corp. * 947,100 4,006,233 UTStarcom, Inc. * (a) 28,300 1,049,081 ------------ 10,177,057 TRANSPORTATION - 0.65% Expeditors International of Washington, Inc. (a) 36,600 1,378,356 Harley-Davidson, Inc. 58,600 2,785,258 ------------ 4,163,614 TRUCKING & FREIGHT - 0.33% Fedex Corp. 30,800 2,079,000 ------------ TOTAL COMMON STOCK (Cost: $487,180,818) $590,136,610 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 4.89% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $31,142,453 $ 31,142,453 ------------ REPURCHASE AGREEMENTS - 2.37% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.85%, to be repurchased at $15,066,711 on 01/02/2004, collateralized by $14,995,000 Federal Farm Credit Bank, 3.875% due 12/15/2004 (valued at $15,369,920, including interest). $15,066,000 $ 15,066,000 ------------ TOTAL INVESTMENTS (ALL CAP GROWTH TRUST) (Cost: $533,389,271) $636,345,063 ============
The accompanying notes are an integral part of the financial statements. 117 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) STRATEGIC OPPORTUNITIES TRUST
SHARES VALUE ------- ----------- COMMON STOCK - 87.25% ADVERTISING - 1.01% Lamar Advertising Company * 84,600 $ 3,157,272 Monster Worldwide, Inc. * 148,300 3,256,668 ----------- 6,413,940 AEROSPACE - 0.43% Empresa Brasileira de Aeronautica SA, ADR (a) 78,100 2,735,843 ----------- AIR FREIGHT - 0.21% ExpressJet Holdings, Inc. * (a) 90,000 1,350,000 ----------- AIR TRAVEL - 2.16% Ryanair Holdings PLC, ADR * (a) 141,800 7,180,752 Southwest Airlines Company * 400,500 6,464,070 ----------- 13,644,822 BANKING - 4.62% Bank of New York Company, Inc. * 248,900 8,243,568 Bank One Corp. 47,600 2,170,084 Fifth Third Bancorp (a) 96,300 5,691,330 Golden West Financial Corp. 74,700 7,708,293 Investors Financial Services Corp. (a) 37,400 1,436,534 Wells Fargo & Company 68,400 4,028,076 ----------- 29,277,885 BIOTECHNOLOGY - 0.88% Genentech, Inc. * 33,500 3,134,595 Integra LifeSciences Holdings Corp. * 17,900 512,477 Millennium Pharmaceuticals, Inc. * 29,400 548,898 Trimeris, Inc. * (a) 67,000 1,405,660 ----------- 5,601,630 BROADCASTING - 5.95% Clear Channel Communications, Inc. 374,900 17,556,567 Radio One, Inc., Class D * (a) 211,800 4,087,740 Viacom, Inc., Class B 361,100 16,025,618 ----------- 37,669,925 BUSINESS SERVICES - 4.29% Affiliated Computer Services, Inc., Class A * 84,800 4,618,208 Central Parking Corp. * (a) 76,800 1,146,624 DST Systems, Inc. * 21,800 910,368 Equifax, Inc. 16,900 414,050 First Data Corp. * (a) 241,800 9,935,562 Paychex, Inc. 96,500 3,589,800 Robert Half International, Inc. * 111,500 2,602,410 Roto Rooter, Inc. (a) 15,500 714,550 Sothebys Holdings, Inc., Class A * (a) 238,100 3,252,446 ----------- 27,184,018 CABLE AND TELEVISION - 1.52% EchoStar Communications Corp., Class A * 282,700 9,611,800 ----------- CELLULAR COMMUNICATIONS - 2.58% Nextel Communications, Inc., Class A * 176,400 4,949,784 Vodafone Group PLC, ADR 454,600 11,383,184 ----------- 16,332,968 CHEMICALS - 1.85% Dow Chemical Company * 281,200 11,689,484 ----------- COLLEGES & UNIVERSITIES - 0.85% Apollo Group, Inc., Class A * 56,000 3,808,000 Corinthian Colleges, Inc. * 28,600 1,589,016 ----------- 5,397,016 COMPUTERS & BUSINESS EQUIPMENT - 2.19% Anteon International Corp. * (a) 33,300 1,200,465 Ingram Micro, Inc., Class A * 366,600 5,828,940 Research In Motion, Ltd. - USD * (a) 69,000 4,611,270 Research In Motion, Ltd. - CAD * 33,600 2,254,646 ----------- 13,895,321 CRUDE PETROLEUM & NATURAL GAS - 0.54% Petrokazakhstan, Inc. - CAD * 83,500 1,891,163 Petrokazakhstan, Inc. - USD * (a) 68,200 1,535,182 ----------- 3,426,345 EDUCATIONAL SERVICES - 0.70% eCollege.com * (a) 18,600 343,356 Sylvan Learning Systems, Inc. * 99,900 2,876,121 Universal Technical Institute, Inc. * (a) 39,800 1,194,000 ----------- 4,413,477 ELECTRIC UTILITIES - 1.25% Sierra Pacific Resources * (a) 286,000 2,099,240 The AES Corp. * 618,400 5,837,696 ----------- 7,936,936 ELECTRONICS - 1.98% Garmin, Ltd. (a) 93,300 5,082,984 Synopsys, Inc. * 220,800 7,454,208 ----------- 12,537,192 FINANCIAL SERVICES - 5.69% American Express Company, 131,700 6,351,891 Capital One Financial Corp. 58,600 3,591,594 Countrywide Financial Corp. 111,067 8,424,407 Federal National Mortgage Association 84,800 6,365,088 MBNA Corp. 253,300 6,294,505 Merrill Lynch & Company, Inc. 60,000 3,519,000 Morgan Stanley 25,000 1,446,750 ----------- 35,993,235 FOOD & BEVERAGES - 1.28% The Coca-Cola Company 159,900 8,114,925 ----------- HEALTHCARE PRODUCTS - 6.60% Alcon, Inc. 51,900 3,142,026 American Medical Systems Holdings, Inc. * 71,400 1,556,520 Baxter International, Inc. * 162,200 4,950,344 Becton Dickinson & Company 72,400 2,978,536 Henry Schein, Inc. * (a) 68,300 4,615,714 Johnson & Johnson 175,100 9,045,666 Medtronic, Inc. 138,100 6,713,041 ResMed, Inc. * (a) 39,200 1,628,368 Respironics, Inc. * 39,100 1,763,019 Sybron Dental Specialties, Inc. * 55,800 1,567,980 The Cooper Companies, Inc. (a) 80,500 3,793,965 ----------- 41,755,179 HEALTHCARE SERVICES - 0.45% Weight Watchers International, Inc. * 74,600 2,862,402 ----------- HOTELS & RESTAURANTS - 2.16% Kerzner International, Ltd. * 104,400 4,067,424 Krispy Kreme Doughnuts, Inc. * (a) 49,500 1,811,700 McDonald's Corp. 171,700 4,263,311 Outback Steakhouse, Inc. 77,800 3,439,538 Red Robin Gourmet Burgers, Inc. * (a) 3,700 112,628 ----------- 13,694,601 INDUSTRIAL MACHINERY - 1.17% Cognex Corp. (a) 94,600 2,671,504 Cooper Cameron Corp. * 23,200 1,081,120 Ingersoll-Rand Company, Class A 54,100 3,672,308 ----------- 7,424,932 INSURANCE - 4.49% ACE, Ltd. 121,610 5,037,086 AFLAC, Inc. 120,100 4,345,218
The accompanying notes are an integral part of the financial statements. 118 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE --------- ------------- INSURANCE - CONTINUED Ambac Financial Group, Inc. 94,700 $ 6,571,233 American International Group, Inc. 113,500 7,522,780 The Allstate Corp. 114,600 4,930,092 ------------- 28,406,409 INTERNATIONAL OIL - 0.22% EnCana Corp. - CAD 19,500 769,528 EnCana Corp. - USD 15,800 623,152 ------------- 1,392,680 INTERNET CONTENT - 1.31% Yahoo!, Inc. * 183,700 8,297,729 ------------- INTERNET RETAIL - 0.89% InterActiveCorp * 165,700 5,622,201 ------------- INTERNET SERVICE PROVIDER - 0.49% Avocent Corp. * 84,800 3,096,896 ------------- INTERNET SOFTWARE - 3.51% Cisco Systems, Inc. * 674,100 16,373,889 VeriSign, Inc. * 359,700 5,863,110 ------------- 22,236,999 LEISURE TIME - 1.53% Carnival Corp. 196,800 7,818,864 Pixar, Inc. * (a) 26,600 1,843,114 ------------- 9,661,978 MANUFACTURING - 2.53% 3M Company 90,000 7,652,700 Tyco International, Ltd. * 316,500 8,387,250 ------------- 16,039,950 MEDICAL-HOSPITALS - 0.84% Health Management Associates, Inc., Class A (a) 221,000 5,304,000 ------------- MINING - 0.98% Joy Global, Inc. 237,900 6,221,085 ------------- MOBILE HOMES - 0.12% Fleetwood Enterprises, Inc. * (a) 73,600 755,136 ------------- OFFICE FURNISHINGS & SUPPLIES - 0.31% HON Industries, Inc. 44,900 1,945,068 ------------- PETROLEUM SERVICES - 1.65% BJ Services Company * 102,200 3,668,980 Nabors Industries, Ltd. * 136,400 5,660,600 Varco International, Inc. * 53,200 1,097,516 ------------- 10,427,096 PHARMACEUTICALS - 1.97% Angiotech Pharmaceuticals, Inc. * (a) 56,600 2,603,600 Biovail Corp. - CAD * 29,200 630,613 Biovail Corp. - USD * (a) 240,000 5,157,600 Pfizer, Inc. 77,900 2,752,207 SciClone Pharmaceuticals, Inc. * (a) 200,000 1,356,000 ------------- 12,500,020 RETAIL GROCERY - 0.99% Sysco Corp. (a) 86,300 3,212,949 Whole Foods Market, Inc. (a) 45,300 3,040,989 ------------- 6,253,938 RETAIL TRADE - 0.32% Rite Aid Corp. * 130,000 785,200 Tuesday Morning Corp. * (a) 41,000 1,240,250 ------------- 2,025,450 SEMICONDUCTORS - 3.35% Altera Corp. * 72,100 1,636,670 Analog Devices, Inc. 193,600 8,837,840 Cymer, Inc. * (a) 102,300 4,725,237 FormFactor, Inc. * (a) 22,100 437,580 Linear Technology Corp. 28,500 1,198,995 Microchip Technology, Inc. 40,600 1,354,416 Sigmatel, Inc. * (a) 23,500 579,980 Taiwan Semiconductor Manufacturing Company, Ltd., ADR * 235,500 2,411,520 ------------- 21,182,238 SOFTWARE - 6.13% Amdocs Ltd. * 124,800 2,805,504 Microsoft Corp. 872,200 24,020,388 SAP AG, ADR 119,700 4,974,732 Satyam Computer Services, Ltd., ADR (a) 31,100 912,163 Siebel Systems, Inc. * 438,700 6,084,769 ------------- 38,797,556 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 5.17% Advanced Fibre Communications, Inc. * 57,100 1,150,565 American Tower Corp., Class A * (a) 802,600 8,684,132 At Road, Inc. * (a) 63,900 849,870 Comverse Technology, Inc. * 78,700 1,384,333 Crown Castle International Corp. * 1,051,600 11,599,148 QUALCOMM, Inc. 59,400 3,203,442 Telefonaktiebolaget LM Ericsson, ADR * (a) 330,600 5,851,620 ------------- 32,723,110 TRANSPORTATION - 0.09% Harley-Davidson, Inc. 11,500 546,595 ------------- TOTAL COMMON STOCK (Cost: $478,854,454) $ 552,400,010 -------------
PRINCIPAL AMOUNT VALUE ----------- ------------ SHORT TERM INVESTMENTS - 11.94% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $75,581,538 $ 75,581,538 ------------ REPURCHASE AGREEMENTS - 0.81% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.50%, to be repurchased at $5,150,143 on 01/02/2004, collateralized by $5,240,000 U.S. Treasury Notes, 1.625% due 09/30/2005 (valued at $5,256,490, including interest). $ 5,150,000 $ 5,150,000 ------------ TOTAL INVESTMENTS (STRATEGIC OPPORTUNITIES TRUST) (Cost: $559,585,992) $633,131,548 ============
FINANCIAL SERVICES TRUST
SHARES VALUE ------ ------------ COMMON STOCK - 91.80% BANKING - 21.55% Bank One Corp. 93,400 $ 4,258,106 Commerce Bancorp, Inc. (a) 54,000 2,844,720 Fifth Third Bancorp 69,300 4,095,630 Golden West Financial Corp. 39,400 4,065,686 Wells Fargo & Company 70,000 4,122,300 ------------ 19,386,442
The accompanying notes are an integral part of the financial statements. 119 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ------------ BUSINESS SERVICES - 7.88% Charles Schwab Corp. 51,000 $ 603,840 Dun & Bradstreet Corp. * 69,300 3,514,203 Moody's Corp. 49,000 2,966,950 ------------ 7,084,993 CONTAINERS & GLASS - 2.92% Sealed Air Corp. * 48,500 2,625,790 ------------ FINANCIAL SERVICES - 20.35% American Express Company 184,300 8,888,789 Citigroup, Inc. 83,900 4,072,506 H & R Block, Inc. 41,200 2,281,244 Janus Capital Group, Inc. 169,100 2,774,931 Providian Financial Corp. * 24,600 286,344 ------------ 18,303,814 HOLDINGS COMPANIES/CONGLOMERATES - 7.36% Berkshire Hathaway, Inc., Class A * 6 505,500 Berkshire Hathaway, Inc., Class B * 700 1,970,500 Julius Baer Holdings, Ltd. * 12,300 4,145,397 ------------ 6,621,397 INSURANCE - 22.01% American International Group, Inc. 45,800 3,035,624 Aon Corp. 77,100 1,845,774 China Life Insurance Company, Ltd., ADR * 19,000 626,430 Cincinnati Financial Corp. 69,200 2,898,096 Everest Re Group, Ltd. 25,400 2,148,840 FPIC Insurance Group, Inc. * (a) 26,800 672,412 Loews Corp. 33,800 1,671,410 Markel Corp. * 6,400 1,622,464 Progressive Corp. 21,000 1,755,390 Transatlantic Holdings, Inc. 43,550 3,518,840 ------------ 19,795,280 MANUFACTURING - 5.40% Tyco International, Ltd. * 183,400 4,860,100 ------------ TOBACCO - 4.33% Altria Group, Inc. 71,500 3,891,030 ------------ TOTAL COMMON STOCK (Cost: $69,536,181) $ 82,568,846 ------------
PRINCIPAL AMOUNT VALUE ----------- ------------ SHORT TERM INVESTMENTS - 8.20% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 1,280,490 $ 1,280,490 Federal Home Loan Bank Discount Note, 0.79% due 01/02/2004 3,993,000 3,992,917 San Paolo U.S. Finance Company, 1.04% due 01/05/2004 2,100,000 2,099,757 ------------ $ 7,373,164 TOTAL INVESTMENTS (FINANCIAL SERVICES TRUST) (Cost: $76,909,345) $ 89,942,010 ============
INTERNATIONAL STOCK TRUST
SHARES VALUE --------- ------------ COMMON STOCK - 79.29% AUSTRALIA - 1.64% QBE Insurance Group, Ltd. * (a) 940,600 $ 7,507,185 ------------ DENMARK - 1.37% A P Moller- Maersk A/S * 867 6,249,230 ------------ FRANCE - 6.63% Caisse Nationale du Credit Agricole * 350,736 8,365,356 Total SA, B Shares * 77,413 14,376,887 Vivendi Universal SA * (a) 313,500 7,611,543 ------------ 30,353,786 GERMANY - 7.76% Allianz AG * (a) 84,450 10,648,794 E.ON AG * 140,200 9,139,615 SAP AG * (a) 34,400 5,771,027 Siemens AG NPV * (a) 124,200 9,936,851 ------------ 35,496,287 HONG KONG - 3.55% BOC Hong Kong Holdings, Ltd. * (a) 4,121,000 7,749,683 Wharf Holdings Ltd. * (a) 3,058,726 8,470,470 ------------ 16,220,153 IRELAND - 1.70% CRH PLC - London * 380,807 7,796,717 ------------ ITALY - 2.20% Eni SPA * (a) 534,795 10,080,276 ------------ JAPAN - 21.66% Canon, Inc. * (a) 210,000 9,781,117 Dai Nippon Printing Company, Ltd. * 603 8,471 Daito Trust Construction Company * (a) 262,400 7,788,603 Hoya Corp. * 88,400 8,119,252 Kirin Brewery Company, Ltd. * (a) 979,000 8,352,135 Mitsubishi Corp. * (a) 856,000 9,076,548 Mizuho Financial Group, Inc. * (a) 3,120 9,464,694 Murata Manufacturing Company, Ltd. * 146,700 7,928,249 Nomura Securities Company, Ltd. * 534,800 9,110,095 NTT DoCoMo, Inc. * 4,080 9,254,119 Sony Corp. * 221,300 7,663,443 Toyota Motor Corp. * (a) 372,000 12,569,562 ------------ 99,116,288 SOUTH KOREA - 2.09% Samsung Electronic * 41,450 7,792,600 Samsung Electronics Company, Ltd., GDR 9,500 1,786,000 ------------ 9,578,600 NETHERLANDS - 1.67% TNT Post Group NV * 326,315 7,634,883 ------------ SPAIN - 3.45% Banco Popular Espanol SA * (a) 130,900 7,801,071 Telefonica SA * 544,776 7,989,589 ------------ 15,790,660 SWITZERLAND - 8.66% Credit Suisse Group * 268,250 9,810,323 Nestle SA * 44,590 11,135,787 Roche Holding AG-Genusschein * 115,000 11,594,803 Syngenta AG * (a) 105,100 7,075,754 ------------ 39,616,667 UNITED KINGDOM - 16.91% AstraZeneca Group PLC * 246,241 11,780,015 BHP Billiton PLC * 984,200 8,573,416 British Sky Broadcasting Group PLC * 459,800 5,769,989 HSBC Holdings PLC * 634,594 9,945,833 Kingfisher PLC * 1,511,900 7,516,211 Royal Bank of Scotland PLC * 323,973 9,518,956 Schroders PLC * 236,235 2,412,076 Smith & Nephew PLC * 898,700 7,527,829 Vodafone Group PLC * 5,798,984 14,336,805 ------------ 77,381,130 TOTAL COMMON STOCK (Cost: $291,992,191) $362,821,862 ------------
The accompanying notes are an integral part of the financial statements. 120 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ----------- ------------ SHORT TERM INVESTMENTS - 20.22% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $92,492,304 $ 92,492,304 ------------ REPURCHASE AGREEMENTS - 0.49% Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.40%, to be repurchased at $2,255,050 on 01/02/2004, collateralized by $2,030,000 U.S. Treasury Bonds, 6.125% due 11/15/2027 (valued at $2,302,952, including interest). $ 2,255,000 $ 2,255,000 ------------ TOTAL INVESTMENTS (INTERNATIONAL STOCK TRUST) (Cost: $386,739,495) $457,569,166 ============
The Trust had the following five top industry concentrations at December 31, 2003 (as a percentage of total value of investments): Banking 9.45% Electronics 5.50% Cellular Communications 5.16% Financial Services 4.59% Food & Beverages 4.26%
OVERSEAS TRUST
SHARES VALUE --------- ----------- COMMON STOCK - 87.15% AUSTRALIA - 0.27% CSL, Ltd. * 105,200 $ 1,413,905 ----------- BERMUDA - 0.50% Nabors Industries, Ltd. * 15,100 626,650 Tyco International, Ltd. * 35,600 943,400 Weatherford International, Ltd. * 28,000 1,008,000 ----------- 2,578,050 BRAZIL - 1.32% Banco Bradesco SA - ADR 25,600 676,096 Banco Itau Holding Financeira SA * 7,410,000 735,872 Brasil Telecom Participacoes SA, ADR 14,800 559,440 Companhia Vale Do Rio Doce, ADR 30,600 1,790,100 Empresa Brasileira de Aeronautica SA, ADR 17,300 606,019 Petroleo Brasileiro SA, ADR 23,000 672,520 Tele Centro Oeste Celular Participacoes SA 9,700 95,545 Tele Norte Leste Participacoes SA, ADR 41,900 646,517 Telecomunicacoes Brasileiras SA, ADR 29,100 984,162 ----------- 6,766,271 CANADA - 3.71% Canadian Natural Resources, Ltd. (a) 33,800 1,709,681 EnCana Corp. - CAD (a) 63,000 2,486,169 EnCana Corp. - USD 18,700 737,528 Inmet Mining Corp * 49,300 665,675 Kinross Gold Corp. - 144A - CAD * 81,200 650,932 Kinross Gold Corp. - CAD * 175,900 1,404,641 Kinross Gold Corp. - USD * 118,000 942,820 Petro-Canada (a) 15,100 746,733 Precision Drilling Corp. - CAD * (a) 24,500 1,075,850 Precision Drilling Corp. - USD * 6,600 288,288 Talisman Energy, Inc. - CAD (a) 111,100 6,320,325 Talisman Energy, Inc. - USD 3,800 215,080 Telus Corp 64,900 1,215,290 Wheaton River Minerals, Ltd. - CAD * 116,800 349,763 Wheaton River Minerals, Ltd. - USD * 86,900 259,831 ----------- 19,068,606 CAYMAN ISLANDS - 0.02% Ctrip.com International Ltd., ADR * 3,000 102,030 ----------- CHINA - 0.58% BYD Company, Ltd., H Shares * (a) 169,500 446,469 China Telecom Corp., Ltd. * 6,272,000 2,564,946 ----------- 3,011,415 DENMARK - 1.12% Coloplast AS, Class B * 10,600 905,722 Danske Bank A/S * 159,900 3,747,107 Novo Nordisk A/S * 27,200 1,106,832 ----------- 5,759,661 FINLAND - 1.26% Nokia AB Oyj * 374,100 6,462,174 ----------- FRANCE - 7.48% Accor SA * (a) 21,400 967,970 Alcatel SA, ADR 213,300 2,740,905 AXA * 161,500 3,453,089 BNP Paribas SA * 87,347 5,493,840 Caisse Nationale du Credit Agricole * 29,400 701,215 European Aeronautic Defence & Space Company * (a) 25,600 608,002 France Telecom SA * 66,100 1,887,187 L'Oreal SA * 14,800 1,212,072 Pernod-Ricard SA * (a) 22,100 2,454,528 Societe Television Francaise 1 * (a) 47,500 1,656,583 Suez SA * (a) 64,300 1,290,566 Total SA, B Shares * 69,828 12,968,226 Vivendi Universal, ADR 125,600 3,049,568 ----------- 38,483,751 GERMANY - 6.70% Allianz AG * (a) 91,450 11,531,465 Altana AG ADR 7,700 464,310 BASF AG * (a) 57,650 3,238,119 Deutsche Boerse AG * (a) 78,699 4,298,449 Deutsche Telekom AG 209,800 3,803,674 Fresenius Medical Care AG * (a) 41,800 2,970,358 Merck & Company, Inc. * 15,700 653,374 Muenchener Rueckversicherungs-Gesellschaft AG * 51,600 6,249,092 SAP AG, ADR 29,700 1,234,332 ----------- 34,443,173 GREECE - 0.13% Greek Organization of Football Prognostics * 45,530 658,556 ----------- HONG KONG - 1.29% China Mobile (Hong Kong), Ltd. * 429,250 1,315,878 Hong Kong Exchange & Clearing, Ltd. * 488,000 1,055,985 Hutchison Whampoa, Ltd. * 218,200 1,601,984 Techtronic Industries Company, Ltd. * 954,000 2,641,893 ----------- 6,615,740 INDIA - 2.14% Cipla, Ltd. * 32,700 946,683 Dr Reddy's Laboratories, Ltd. * 39,000 1,224,043 Housing Development Finance Corp., Ltd. * 204,400 2,894,618 I-Flex Solutions Ltd. * 38,703 718,983 Infosys Technologies, Ltd * 26,008 3,180,235 Satyam Computer Services, Ltd. * 255,100 2,059,582 ----------- 11,024,144
The accompanying notes are an integral part of the financial statements. 121 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE --------- ----------- ITALY - 1.29% Banca Intesa SPA * (a) 290,587 $ 1,134,988 Eni SPA * 94,950 1,789,699 Telecom Italia SPA * (a) 637,756 1,888,322 UniCredito Italiano SPA * (a) 338,200 1,823,773 ----------- 6,636,782 JAPAN - 20.37% Advantest Corp. * 35,000 2,776,870 Aeon Credit Service Company, Ltd. * 27,500 1,173,053 Canon, Inc. * 58,000 2,701,451 Daikin Industries, Ltd. * 29,000 669,949 Daiwa Securities Group, Inc. 514,000 3,497,513 Familymart Company, Ltd. * 63,200 1,439,380 Ito-Yokado Company, Ltd. * 155,000 4,875,624 Jafco Company, Ltd. * (a) 56,100 4,409,035 KDDI Corp. * (a) 564 3,232,333 Konica Minolta Holdings, Inc. * 119,500 1,607,313 Kyocera Corp. * 31,600 2,105,978 Kyorin Pharmaceuticals Company, Ltd. * 10,300 115,849 Matsushita Electric Industrial Company, Ltd. * (a) 172,000 2,379,278 Millea Holdings, Inc. * 135 1,764,129 Mitsubishi Tokyo Financial Group, Inc. * 517 4,034,275 Mizuho Financial Group, Inc. * (a) 1,281 3,885,985 Murata Manufacturing Company, Ltd. * (a) 48,400 2,615,728 Nikko Cordial Corp. * (a) 1,433,000 7,985,262 Nikon Corp. * (a) 150,000 2,262,566 Nitto Denko Corp. * 44,000 2,340,972 Nomura Securities Company, Ltd. * 574,000 9,777,850 Orix Corp. * (a) 24,200 2,001,325 Pioneer Electronic Corp. * 35,800 989,107 Rohm Company * 14,800 1,735,082 Seiyu, Ltd. * (a) 267,000 904,662 Shin-Etsu Chemical Company, Ltd. * 45,900 1,876,530 SMC Corp. * 8,600 1,070,836 Sumitomo Electric Industries, Ltd. * 120,000 1,073,039 Sumitomo Mitsui Financial Group, Inc. * (a) 1,136 6,054,567 TDK Corp. * 53,100 3,826,313 Tokyo Electron, Ltd. * (a) 105,400 8,008,177 Toyota Motor Corp. * 193,900 6,551,715 UFJ Holdings, Inc. * (a) 879 4,225,370 UNY Company, Ltd. * 78,000 800,859 ----------- 104,767,975 SOUTH KOREA - 2.93% Kookmin Bank * 40,900 1,532,677 LG Electronics, Inc. 44,500 2,188,586 Samsung Electronics Company * 29,970 11,344,079 ----------- 15,065,342 NETHERLAND ANTILLES - 0.31% Schlumberger, Ltd. * 29,200 1,597,824 ----------- NETHERLANDS - 5.80% Aegon NV * 17,400 257,158 ASML Holding NV * (a) 572,941 11,347,911 ING Groep NV * 226,228 5,270,317 Koninklijke (Royal) KPN NV * 154,800 1,193,647 Koninklijke (Royal) Philips Electronics NV * 93,200 2,718,444 Koninklijke Ahold NV * (a) 114,000 867,552 Unilever NV 73,800 4,789,620 VNU NV * 107,100 3,380,264 ----------- 29,824,913 NORWAY - 0.08% Golar LNG, Inc. * 27,400 392,544 ----------- RUSSIA - 0.89% JSC MMC Norilsk Nickel, ADR 28,100 1,868,650 Lukoil, ADR 7,000 651,000 OAO Gazprom, ADR 24,500 634,550 Yukos Corp., ADR 32,935 1,403,031 ----------- 4,557,231 SOUTH AFRICA - 0.14% Harmony Gold Mining Company, Ltd. 45,300 735,219 ----------- SPAIN - 2.27% Altadis SA, Series A * 39,100 1,108,441 Banco Popular Espanol SA * (a) 40,100 2,389,786 Banco Santander Central, Hispano SA * 278,948 3,300,216 Telefonica SA * 331,230 4,857,761 ----------- 11,656,204 SWEDEN - 1.30% Securitas AB-B Shares * 39,700 535,383 Telefonaktiebolaget LM Ericsson, ADR * 348,600 6,170,220 ----------- 6,705,603 SWITZERLAND - 6.34% Actelion Ltd. * 4,428 477,765 Clariant AG * 35,090 517,573 Compagnie Financiere Richemont AG * 72,160 1,732,120 Credit Suisse Group * 145,150 5,308,363 Novartis AG-Reg Shares * 239,100 10,850,614 Roche Holding AG-Genusschein * 59,573 6,006,411 Syngenta AG * (a) 606 40,798 Synthes-Stratec, Inc. * 1,222 1,208,864 UBS AG-Registered * 76,440 5,232,739 Zurich Financial Services AG * 8,592 1,236,059 ----------- 32,611,306 TAIWAN - 1.90% Compal Electronics, Inc. * 449,000 614,978 High Tech Computer Corp. * 156,000 572,076 Hon Hai Precision Industry Company, Ltd. 333,600 1,311,800 Quanta Computer, Inc. 372,000 914,934 Taiwan Semiconductor Manufacturing Company, Ltd. * 1,149,200 2,149,461 United Microelectronics Corp. * 4,905,000 4,204,286 ----------- 9,767,535 TURKEY - 0.17% Turkcell Iletisim Hizmetleri A.S., ADR * 33,500 889,425 ----------- UNITED KINGDOM - 13.80% 3i Group PLC * 219,700 2,421,685 Abbey National Benefit Consultants, Ltd. * 148,300 1,405,680 AstraZeneca Group PLC * 111,900 5,353,226 Aviva PLC * 65,800 575,830 BHP Billiton PLC * 254,900 2,220,447 BOC Group PLC * 63,600 968,972 BP PLC * 1,091,500 8,826,177 Carlton Communications PLC * 308,600 1,266,994 Centrica PLC * 310,700 1,170,239 Dixons Group PLC * 767,500 1,904,337 E D & F Manitoba Treasury Management * 105,000 2,738,358 Enterprise Inns PLC * 34,200 619,034 GlaxoSmithKline PLC * 96,618 2,207,591 Hilton Group PLC * 455,800 1,828,625 HSBC Holdings PLC * 347,088 5,439,824 Kesa Electricals PLC * 324,288 1,489,145 Lloyds TSB Group PLC * 69,700 557,393 Marks & Spencer Group, PLC * 301,900 1,557,441 mm02 PLC * 1,166,100 1,602,792 Prudential Corp. * 135,850 1,145,203
The accompanying notes are an integral part of the financial statements. 122 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE --------- ------------- UNITED KINGDOM - CONTINUED Reckitt & Colman * 74,700 $1,685,460 Rio Tinto PLC * 117,400 3,233,588 Royal Bank of Scotland PLC * 55,100 1,618,945 Shire Pharmaceuticals Group PLC, ADR * 58,100 1,687,805 Smith & Nephew PLC * 148,700 1,245,564 Tesco PLC * 497,463 2,288,812 Unilever PLC, ADR 35,000 1,316,000 Vodafone Group PLC * 4,493,678 11,109,702 William Hill PLC * 48,700 371,200 Xstrata PLC * 37,500 421,718 Yell Group PLC * 122,600 667,484 ------------- 70,945,271 UNITED STATES - 3.04% Apropos Technology, Inc. * 100 348 Baker Hughes, Inc. 56,300 1,810,608 ENSCO International, Inc. 65,000 1,766,050 Fox Entertainment Group, Inc., Class A * 30,200 880,330 Grant Prideco, Inc. * 98,700 1,285,074 Merck & Company, Inc. 24,400 1,127,280 Microsoft Corp. 21,300 586,602 Noble Corp. * 52,500 1,878,450 NTL, Inc. * 62,600 4,366,350 Pride International, Inc. * 8,600 160,304 Smith International, Inc. * 6,000 249,120 Transocean, Inc. * 63,600 1,527,036 ------------- 15,637,552 TOTAL COMMON STOCK (Cost: $369,585,972) $ 448,178,202 -------------
SHARES VALUE -------- ----------- PREFERRED STOCK - 1.45% AUSTRALIA - 0.83% The News Corp., Ltd., ADR 141,000 $ 4,265,250 ----------- GERMANY - 0.62% Fresenius Medical Care AG * 29,831 1,501,544 Porsche AG * (a) 2,900 1,719,212 ----------- 3,220,756 TOTAL PREFERRED STOCK (Cost: $6,670,969) $ 7,486,006 -----------
PRINCIPAL AMOUNT VALUE --------- ----------- CORPORATE BONDS - 0.55% UNITED KINGDOM - 0.55% Telewest Communications PLC, 9.625% due 10/01/2006 755,000 477,537 9.875% due 02/01/2010 1,095,000 678,900 11.00% due 10/01/2007 2,095,000 1,361,750 zero coupon, Step up to 11.375% on 02/01/2005 due 02/01/2010 160,000 78,400 zero coupon, Step up to 9.25% on 04/15/2004 due 04/15/2009 425,000 221,000 ----------- 2,817,587 TOTAL CORPORATE BONDS (Cost: $2,163,241) $ 2,817,587 -----------
PRINCIPAL AMOUNT VALUE ------------ -------------- SHORT TERM INVESTMENTS - 9.96% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 51,204,315 $ 51,204,315 ------------- REPURCHASE AGREEMENTS - 0.89% Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.50%, to be repurchased at $4,572,127 on 01/02/2004, collateralized by $4,320,000 U.S Treasury Notes, 6.75% due 05/15/2005 (valued at $4,665,600, including interest). $ 4,572,000 $ 4,572,000 ------------- TOTAL INVESTMENTS (OVERSEAS TRUST) (Cost: $434,196,497) $ 514,258,110 =============
The Trust has the following five top industry concentrations at December 31, 2003 (as a percentage of total value of investments): Banking 9.96% Financial Services 9.44% Petroleum Services 8.97% Electronics 6.79% Insurance 6.12%
INTERNATIONAL SMALL CAP TRUST
SHARES VALUE --------- ----------- COMMON STOCK - 86.18% AUSTRALIA - 6.91% APN News & Media * (a) 1,016,366 $ 3,061,092 Billabong International, Ltd. * (a) 425,400 2,283,775 Iluka Resources, Ltd. * (a) 2,017,075 6,879,970 John Fairfax Holdings, Ltd. * 1,488,600 3,945,363 Mayne Nickless, Ltd. * 412,175 1,011,732 Promina Group * (a) 1,165,000 2,877,174 Sons Of Gwalia, Ltd. * (a) 1,424,690 3,808,158 ----------- 23,867,264 BELGIUM - 1.59% Barco NV * 62,635 5,484,731 ----------- BERMUDA - 1.65% Axis Capital Holdings Ltd. 62,600 1,832,928 Moulin International Holding * 5,804,000 3,850,021 ----------- 5,682,949 CANADA - 8.76% ATI Technologies, Inc. * 170,833 2,576,342 GSI Lumonics, Inc. * 236,100 2,776,895 Laurentian Bank of Canada * 165,500 3,566,507 Legacy Hotels Real Estate Investment, REIT 117,400 652,247 Linamar Corp. 281,275 2,511,637 National Bank Canada Montreal Quebec 86,875 2,899,979 North West Company 217,925 4,175,202 Precision Drilling Corp. - CAD * 99,125 4,352,802 Quebecor World Inc. 97,500 2,018,126 Sobeys, Inc. 31,700 816,814 Torstar Corp. 109,310 2,453,734 Transcontinental, Inc., Class A 56,200 1,043,680 Transcontinental, Inc., Class B 21,800 407,711 ----------- 30,251,676
The accompanying notes are an integral part of the financial statements. 123 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ---------- ------------- DENMARK - 3.58% ISS International A/S * 65,800 $3,239,789 Vestas Wind Systems AS * (a) 561,100 9,114,006 ------------- 12,353,795 FINLAND - 4.53% Amer Group, Ltd. * (a) 157,300 6,807,834 KCI Konecranes Oyj * 50,500 1,756,119 Metso Oyj * 266,500 3,250,319 Orion, Series B * (a) 178,210 3,821,599 ------------- 15,635,871 FRANCE - 0.55% Galeries Lafayette SA * 12,225 1,891,475 ------------- GERMANY - 2.45% Hugo Boss AG * (a) 131,200 2,636,623 Jenoptik AG * (a) 530,087 5,810,585 ------------- 8,447,208 HONG KONG - 10.02% Asia Satellite Telecom Holdings * 413,000 784,640 China Resource Power Holdings * 11,476,000 5,321,346 Dah Sing Financial Group * 463,200 3,445,474 Fountain Set Holdings, Ltd. * (a) 2,622,000 1,789,934 Giordano International, Ltd. * (a) 15,534,000 7,152,993 Hung Hing Printing * 1,638,000 1,308,079 Lerado Group Holdings * (a) 17,418,000 3,365,255 Techtronic Industries Company, Ltd. * 1,048,000 2,902,206 Texwinca Holdings, Ltd. * (a) 1,256,000 914,043 Weiqiao Textile Company Ltd. * 1,621,000 2,046,151 Wing Hang Bank, Ltd. * 511,000 3,040,824 Wing Lung Bank, Ltd. * 382,900 2,515,267 ------------- 34,586,212 INDIA - 0.68% Satyam Computer Services, Ltd., ADR 80,500 2,361,065 ------------- ISRAEL - 1.32% Orbotech, Ltd. * 190,210 4,549,823 ------------- JAPAN - 3.01% Japan Airport Terminal Company, Ltd. * 595,000 4,376,348 Meitec Corp. * (a) 77,200 2,968,815 Ono Pharmaceutical Company, Ltd. * 54,000 2,031,269 Seiko Epson Corp. * 6,500 303,355 Tokyo Individualized Education * 89,700 720,045 ------------- 10,399,832 SOUTH KOREA - 4.00% Daeduck Electronics Company, Ltd. * 362,190 3,602,141 Daegu Bank * 460,480 2,229,937 Halla Climate Control Corp. * 47,330 4,270,227 Pusan Bank * 660,290 3,696,294 ------------- 13,798,599 LUXEMBOURG - 1.48% Thiel Logistik AG * 942,317 5,117,146 ------------- MEXICO - 1.95% Corporacion GEO, SA, de C.V., Series B * 644,250 3,283,456 Grupo Aeroportuario, ADR 184,475 3,246,760 Grupo Continential SA * 110,800 187,346 ------------- 6,717,562 NETHERLANDS - 9.15% Aalberts Industries NV * 155,250 4,015,818 Arcadis NV * (a) 20,150 237,124 Draka Holdings * (a) 276,145 5,427,693 IHC Caland NV * 87,775 4,755,462 Internatio Muller * 162,180 4,205,292 OPG Groep NV * 141,884 6,444,543 Vedior NV * 417,430 6,521,670 ------------- 31,607,602 NEW ZEALAND - 1.02% Fisher & Paykel * 424,476 3,518,175 ------------- SINGAPORE - 1.67% Want Want Holdings * 6,081,000 5,776,950 ------------- SPAIN - 3.19% Sol Melia SA * (a) 874,580 6,292,006 Transportes Azkar * 721,435 4,726,656 ------------- 11,018,662 SWEDEN - 4.24% D Carnegie & Company AB * 187,400 1,849,822 Kungsleden * 240,400 6,450,506 Obsever AB * 1,331,190 6,347,989 ------------- 14,648,317 SWITZERLAND - 3.57% Gurit Heberlein * 6,643 4,611,927 Kuoni Reisen Holding AG * 5,540 1,853,681 Sig Holding AG * 20,750 2,863,543 Vontobel Holdings AG * 131,725 3,007,542 ------------- 12,336,693 TAIWAN - 0.58% Taiwan Fu Hsing * 2,295,000 2,007,703 ------------- THAILAND - 1.85% Krung Thai Bank PLC * 10,153,600 3,151,979 PTT PLC., Ltd. 694,700 3,243,599 ------------- 6,395,578 UNITED KINGDOM - 8.43% Avis Europe PLC * 3,230,585 5,478,422 Brambles Industries, Ltd. * 1,324,100 4,809,898 Geest PLC * 650,608 5,269,710 Kidde PLC * 2,855,275 5,428,105 Novar PLC * 1,662,555 4,095,489 Smith WH Group * 817,030 4,018,004 ------------- 29,099,628 TOTAL COMMON STOCK (Cost: $211,975,241) $ 297,554,516 -------------
PRINCIPAL AMOUNT VALUE ------------ ------------- SHORT TERM INVESTMENTS - 7.81% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 26,976,661 $ 26,976,661 ------------- REPURCHASE AGREEMENTS - 6.01% Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.40%, to be repurchased at $20,765,461 on 01/02/2004, collateralized by $14,425,000 U.S. Treasury Bonds, 9.25% due 11/15/2016 (valued at $21,186,719, including interest). $ 20,765,000 $ 20,765,000 ------------- TOTAL INVESTMENTS (INTERNATIONAL SMALL CAP TRUST) (Cost: $259,716,902) $ 345,296,177 =============
The accompanying notes are an integral part of the financial statements. 124 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) The Trust had the following five top industry concentrations at December 31, 2003 (as a percentage of total value of investments): Business Services 10.09% Banking 6.11% Electronics 5.61% Electrical Equipment 5.05% Apparel & Textiles 4.87%
INTERNATIONAL VALUE TRUST
SHARES VALUE --------- ------------ COMMON STOCK - 85.62% AUSTRALIA - 3.30% Iluka Resources, Ltd. * (a) 2,099,310 $ 7,160,462 John Fairfax Holdings, Ltd. * 1,985,450 5,262,207 Qantas Airways, Ltd., ADR * 1,039,400 2,574,808 ------------ 14,997,477 BERMUDA - 0.75% ACE, Ltd. 82,600 3,421,292 ------------ CANADA - 4.52% Abitibi Consolidated Inc. (a) 555,730 4,459,256 Barrick Gold Corp. (a) 309,500 7,019,341 BCE, Inc. (a) 178,000 3,980,501 Husky Energy, Inc. (a) 280,380 5,091,901 ------------ 20,550,999 CHINA - 0.12% China Life Insurance Company, Ltd. * 682,000 557,810 ------------ DENMARK - 4.23% ISS International A/S * 82,270 4,050,721 Tele Danmark AS * 174,400 6,285,269 Vestas Wind Systems AS * (a) 547,450 8,892,288 ------------ 19,228,278 FINLAND - 3.36% Metso Oyj * 392,600 4,788,276 Sampo Oyj, A Shares * 492,100 5,084,177 Stora Enso Oyj-R Shares * 402,890 5,421,397 ------------ 15,293,850 FRANCE - 5.99% Aventis SA * 79,300 5,235,497 Aventis SA-DEM * 8,927 588,473 AXA * 365,100 7,806,334 Compagnie Generale des Etablissements Michelin, Class B* 65,700 3,011,491 Suez SA * (a) 229,100 4,598,269 Total SA, B Shares * 32,164 5,973,392 ------------ 27,213,456 GERMANY - 5.20% Adidas-Salomon AG * 58,140 6,614,793 Bayer AG * (a) 194,440 5,688,546 Deutsche Post AG * 351,700 7,245,087 E.ON AG * 62,700 4,087,403 ------------ 23,635,829 HONG KONG - 5.00% Bank of East Asia * 1,006,000 3,083,922 Cheung Kong Holdings, Ltd. * 624,000 4,942,972 China Mobile Hong Kong, Ltd., ADR 289,000 4,488,170 CLP Holdings, Ltd. * 991,100 4,710,558 Hutchison Whampoa, Ltd. * 522,000 3,832,426 Swire Pacific * 1,584,500 1,673,534 ------------ 22,731,582 ISRAEL - 1.07% Check Point Software Technologies, Ltd. * 289,000 4,860,980 ------------ ITALY - 1.22% Eni SPA * (a) 295,150 5,563,241 ------------ JAPAN - 6.17% Hitachi, Ltd. * 788,000 4,751,463 NEC Corp. * (a) 386,000 2,842,712 Nintendo Company, Ltd. * 71,700 6,692,491 Nippon Telegraph & Telephone Corp., ADR 187,710 4,610,158 Ono Pharmaceutical Company, Ltd. * 121,000 4,551,547 Sony Corp. * (a) 133,000 4,605,684 ------------ 28,054,055 SOUTH KOREA - 4.26% Kookmin Bank ADR 93,250 3,528,580 Korea Electric Power Corp. 89,020 1,598,849 Korea Electric Power Corp., ADR 267,000 2,774,130 KT Corp., ADR 202,900 3,869,303 Samsung Electronics Company * 20,050 7,589,215 ------------ 19,360,077 MEXICO - 1.18% Grupo Carso, Series A1 * 111,280 391,168 Telefonos de Mexico SA de CV, ADR, Class L 150,600 4,974,318 ------------ 5,365,486 NETHERLANDS - 5.78% Akzo Nobel NV * 225,730 8,702,904 ING Groep NV * 349,260 8,136,530 Koninklijke (Royal) Philips Electronics NV * 214,508 6,256,738 Reed Elsevier NV * 254,700 3,160,957 ------------ 26,257,129 NEW ZEALAND - 0.47% Telecom Corp. of New Zealand, Ltd. * (a) 608,600 2,141,312 ------------ SINGAPORE - 0.62% DBS Group Holdings, Ltd. * 327,000 2,830,419 ------------ SPAIN - 2.92% Antena 3 Television SA * (a) 593 26,105 Iberdrola SA * (a) 269,220 5,315,325 Repsol-YPF SA * 275,500 5,366,419 Telefonica SA * 175,400 2,572,385 ------------ 13,280,234 SWEDEN - 5.70% Atlas Copco AB-A Shares * 93,500 3,347,271 Autoliv, Inc. 75,700 2,850,105 ForeningsSparbanken AB, Series A * (a) 191,450 3,766,290 Nordic Baltic Holding-DKK * 373,998 2,796,980 Nordic Baltic Holding-EUR * 685,420 5,112,484 Securitas AB-B Shares * 340,000 4,585,141 Volvo AB, B Shares * (a) 113,100 3,459,293 ------------ 25,917,564 SWITZERLAND - 3.12% Nestle SA * 29,800 7,442,173 Swiss Reinsurance * 59,540 4,018,096 UBS AG-Registered * 40,000 2,738,220 ------------ 14,198,489 TAIWAN - 0.92% Chunghwa Telecom Company Ltd., ADR 286,800 4,158,600 ------------ UNITED KINGDOM - 19.72% Abbey National Benefit Consultants, Ltd. * 525,400 4,980,068 BHP Billiton PLC * 544,963 4,747,200 BP PLC * 919,600 7,436,145 Brambles Industries, Ltd. * 1,220,374 4,433,105 Bristish Aerospace Systems PLC * 2,412,354 7,245,140 Cadbury Schweppes PLC * 619,200 4,534,509
The accompanying notes are an integral part of the financial statements. 125 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE --------- ------------- UNITED KINGDOM - CONTINUED GlaxoSmithKline PLC * 196,100 $4,480,621 J. Sainsbury PLC * 809,200 4,517,560 Kidde PLC * 903,300 1,717,245 Lloyds TSB Group PLC * 851,200 6,807,072 Marks & Spencer Group, PLC * 728,761 3,759,531 National Grid Transco PLC * 594,700 4,248,934 Pearson PLC * 414,600 4,603,312 Rolls-Royce Group PLC * 1,094,500 3,463,002 Shell Transport & Trading Company PLC * 736,200 5,460,313 Shire Pharmaceuticals Group * 683,100 6,615,074 Smiths Group PLC * 418,700 4,940,320 Unilever PLC * 609,890 5,669,327 ------------- 89,658,478 TOTAL COMMON STOCK (Cost: $320,529,566) $ 389,276,637 -------------
SHARES VALUE ------ ------------ PREFERRED STOCK - 0.69% GERMANY - 0.69% Volkswagen AG - Non Voting Preferred * 86,750 $ 3,142,395 ----------- TOTAL PREFERRED STOCK (Cost: $2,823,765) $ 3,142,395 -----------
PRINCIPAL AMOUNT VALUE --------- --------- CORPORATE BONDS - 0.10% FRANCE - 0.10% AXA, 00.01% due 12/21/2004 22,817 $ 459,685 --------- TOTAL CORPORATE BONDS (Cost: $337,420) $ 459,685 ---------
PRINCIPAL AMOUNT VALUE ------------ ------------- SHORT TERM INVESTMENTS - 10.21% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 46,428,194 $ 46,428,194 ------------- REPURCHASE AGREEMENTS - 3.38% Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.40%, to be repurchased at $15,384,342 on 01/02/2004, collateralized by $15,350,000 U.S. Treasury Notes, 4.75% due 02/15/2004 (valued at $15,695,375, including interest). $ 15,384,000 $ 15,384,000 ------------- TOTAL INVESTMENTS (INTERNATIONAL VALUE TRUST) (Cost: $385,502,945) $ 454,690,911 =============
The Trust had the following five top industry concentrations at December 31, 2003 (as a percentage of total value of investments): Banking 5.62% Insurance 5.27% Electric Utilities 5.00% Pharmaceuticals 4.72% Business Services 4.35%
QUANTITATIVE MID CAP TRUST
SHARES VALUE ------- ----------- COMMON STOCK - 88.07% APPAREL & TEXTILES - 1.86% Coach, Inc. * 64,600 $ 2,438,650 ----------- BANKING - 2.98% New York Community Bancorp, Inc. (a) 46,500 1,769,325 Sovereign Bancorp, Inc. * 90,000 2,137,500 ----------- 3,906,825 BIOTECHNOLOGY - 1.23% Invitrogen Corp. * 23,000 1,610,000 ----------- BROADCASTING - 1.50% Westwood One, Inc. * 57,600 1,970,496 ----------- BUSINESS SERVICES - 5.81% Affiliated Computer Services, Inc., Class A * 51,800 2,821,028 Corporate Executive Board Company * 45,100 2,104,817 Jacobs Engineering Group, Inc. * 56,000 2,688,560 ----------- 7,614,405 COLLEGES & UNIVERSITIES - 1.79% Apollo Group, Inc., Class A * 34,500 2,346,000 ----------- COMPUTERS & BUSINESS EQUIPMENT - 5.26% Cognizant Technology Solutions Corp., Class A * 30,200 1,378,328 Fair Isaac Corp. 42,800 2,104,048 NetScreen Technologies, Inc. * (a) 46,400 1,148,400 Network Appliance, Inc. * 49,000 1,005,970 Western Digital Corp. * 106,400 1,254,456 ----------- 6,891,202 CONTAINERS & GLASS - 2.13% Ball Corp. 26,300 1,566,691 Pactiv Corp. * 51,400 1,228,460 ----------- 2,795,151 COSMETICS & TOILETRIES - 1.25% Alberto Culver Company, Class B 25,900 1,633,772 ----------- CRUDE PETROLEUM & NATURAL GAS - 3.74% Chesapeake Energy Corp. (a) 161,300 2,190,454 XTO Energy, Inc. 95,900 2,713,970 ----------- 4,904,424 ELECTRICAL EQUIPMENT - 1.89% AMETEK, Inc. 51,200 2,470,912 ----------- ELECTRIC UTILITIES - 1.26% The Southern Company 54,500 1,648,625 ----------- ELECTRONICS - 3.98% Foundry Networks, Inc. * 44,300 1,212,048 Harman International, Inc. 30,200 2,234,196 L-3 Communications Holdings, Inc. * (a) 34,400 1,766,784 ----------- 5,213,028 FINANCIAL SERVICES - 6.00% Bear Stearns Companies, Inc. 21,800 1,742,910 Capital One Financial Corp. 14,600 894,834 Charter One Financial, Inc. 31,500 1,088,325 Countrywide Financial Corp. 18,967 1,438,622 Eaton Vance Corp. 19,100 699,824 Legg Mason, Inc. 25,800 1,991,244 ----------- 7,855,759 FOOD & BEVERAGES - 3.16% Constellation Brands, Inc., Class A * 73,000 2,403,890 Dean Foods Company * 52,900 1,738,823 ----------- 4,142,713
The accompanying notes are an integral part of the financial statements. 126 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ------------- GAS & PIPELINE UTILITIES - 4.34% Kinder Morgan, Inc. 41,900 $ 2,476,290 Philadelphia Suburban Corp. (a) 74,275 1,641,477 Questar Corp. 44,600 1,567,690 ------------- 5,685,457 HEALTHCARE PRODUCTS - 3.95% Henry Schein, Inc. * 23,000 1,554,340 Varian Medical Systems, Inc. * 29,600 2,045,360 Zimmer Holdings, Inc. * 22,400 1,576,960 ------------- 5,176,660 HEALTHCARE SERVICES - 2.58% Caremark Rx, Inc. * 51,200 1,296,896 Coventry Health Care, Inc. * 32,300 2,083,027 ------------- 3,379,923 HOTELS & RESTAURANTS - 1.07% Krispy Kreme Doughnuts, Inc. * (a) 38,300 1,401,780 ------------- HOUSEHOLD APPLIANCES - 1.25% Black & Decker Corp. 33,300 1,642,356 ------------- HOUSEHOLD PRODUCTS - 1.24% Fortune Brands, Inc. 22,700 1,622,823 ------------- INDUSTRIAL MACHINERY - 1.39% Ingersoll-Rand Company, Class A 26,800 1,819,184 ------------- INSURANCE - 6.32% Fidelity National Financial, Inc. 56,150 2,177,497 PartnerRe, Ltd. 36,300 2,107,215 Radian Group, Inc. 47,500 2,315,625 RenaissanceRe Holdings, Ltd. 34,100 1,672,605 ------------- 8,272,942 INTERNET SOFTWARE - 1.16% Symantec Corp. * 43,900 1,521,135 ------------- LEISURE TIME - 1.70% International Game Technology 62,200 2,220,540 ------------- NEWSPAPERS - 0.79% E.W. Scripps Company, Class A 11,000 1,035,540 ------------- PETROLEUM SERVICES - 2.76% BJ Services Company * 58,400 2,096,560 Key Energy Services, Inc. * 147,600 1,521,756 ------------- 3,618,316 PHARMACEUTICALS - 3.14% Celgene Corp. * (a) 22,900 1,030,958 Pharmaceutical Resources, Inc. * 31,100 2,026,165 Teva Pharmaceutical Industries, Ltd., ADR 18,700 1,060,477 ------------- 4,117,600 POLLUTION CONTROL - 2.03% Stericycle, Inc. * 56,900 2,657,230 ------------- RAILROADS & EQUIPMENT - 0.94% Norfolk Southern Corp. 52,300 1,236,895 ------------- RETAIL TRADE - 4.94% Bed Bath & Beyond, Inc. * 51,400 2,228,190 Chico's FAS, Inc. * 73,500 2,715,825 Family Dollar Stores, Inc. 42,600 1,528,488 ------------- 6,472,503 SEMICONDUCTORS - 3.75% Broadcom Corp., Class A * 20,700 705,663 Integrated Circuit Systems, Inc. * 23,800 678,062 Marvell Technology Group, Ltd. * 34,900 1,323,757 QLogic Corp. * 17,100 882,360 Silicon Laboratories, Inc. * 30,600 1,322,532 ------------- 4,912,374 SOFTWARE - 0.57% BEA Systems, Inc. * 60,900 749,070 ------------- STEEL - 0.31% International Steel Group, Inc. * 10,500 408,975 ------------- TOTAL COMMON STOCK (Cost: $89,817,138) $ 115,393,265 -------------
PRINCIPAL AMOUNT VALUE ----------- ------------- SHORT TERM INVESTMENTS - 9.32% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 8,414,534 $ 8,414,534 Federal Home Loan Bank Consolidated Discount Notes, 1.02% due 02/11/2004 800,000 799,071 Federal National Mortgage Association Discount Notes, 1.06% due 02/18/2004 2,000,000 1,997,173 Federal National Mortgage Association Discount Notes, Series BB, 1.05% due 01/15/2004 1,000,000 999,592 ------------- $ 12,210,370 REPURCHASE AGREEMENTS - 2.61% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at $3,415,133 on 01/02/2004, collateralized by $2,440,000 U.S. Treasury Bonds, 8.500% due 02/15/2020 (valued at $3,484,625, including interest). $ 3,415,000 $ 3,415,000 ------------- TOTAL INVESTMENTS (QUANTITATIVE MID CAP TRUST) (Cost: $105,442,508) $ 131,018,635 =============
MID CAP CORE TRUST
SHARES VALUE ------ --------- COMMON STOCK - 77.35% APPAREL & TEXTILES - 3.70% Mohawk Industries, Inc. * 10,600 747,724 NIKE, Inc., Class B 8,300 568,218 V.F. Corp. (a) 15,000 648,600 --------- 1,964,542 AUTO PARTS - 1.06% Genuine Parts Company 17,000 564,400 --------- BANKING - 1.67% Marshall & Ilsley Corp. 7,100 271,575 TCF Financial Corp. 12,000 616,200 --------- 887,775 BIOTECHNOLOGY - 0.97% Millipore Corp. * 12,000 516,600 --------- BUSINESS SERVICES - 7.31% Affiliated Computer Services, Inc., Class A * (a), 9,200 501,032
The accompanying notes are an integral part of the financial statements. 127 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----------- BUSINESS SERVICES - CONTINUED Cadence Design Systems, Inc. * 15,000 $ 269,700 Ceridian Corp. * 51,000 1,067,940 Certegy, Inc. 18,300 600,240 Pitney Bowes, Inc. 8,600 349,332 Valassis Communications, Inc. * 23,000 675,050 Viad Corp. * 16,900 422,500 ----------- 3,885,794 CHEMICALS - 1.94% Engelhard Corp. 14,000 419,300 The Scotts Company, Class A * (a) 10,300 609,348 ----------- 1,028,648 COMPUTERS & BUSINESS EQUIPMENT - 0.91% Diebold, Inc. 9,000 484,830 ----------- CONSTRUCTION MATERIALS - 0.58% Martin Marietta Materials, Inc. 6,600 310,002 ----------- CONTAINERS & GLASS - 1.30% Pactiv Corp. * 29,000 693,100 ----------- COSMETICS & TOILETRIES - 2.36% International Flavors & Fragrances, Inc. 36,000 1,257,120 ----------- CRUDE PETROLEUM & NATURAL GAS - 2.72% Devon Energy Corp. 6,000 343,560 Pioneer Natural Resources Company * 17,000 542,810 XTO Energy, Inc. 19,800 560,340 ----------- 1,446,710 ELECTRIC UTILITIES - 3.09% FPL Group, Inc. 4,700 307,474 TECO Energy, Inc. (a) 30,000 432,300 Wisconsin Energy Corp. 27,000 903,150 ----------- 1,642,924 ELECTRONICS - 5.50% Agilent Technologies, Inc. * 13,900 406,436 Amphenol Corp., Class A * 7,000 447,510 L-3 Communications Holdings, Inc. * (a) 12,900 662,544 Molex, Inc., Class A * 13,000 381,680 Roper Industries, Inc. 12,000 591,120 Vishay Intertechnology, Inc. * (a) 19,000 435,100 ----------- 2,924,390 FOOD & BEVERAGES - 2.02% Campbell Soup Company * 40,000 1,072,000 ----------- HEALTHCARE PRODUCTS - 2.61% Apogent Technologies, Inc. * 44,000 1,013,760 C.R. Bard, Inc. 4,600 373,750 ----------- 1,387,510 HEALTHCARE SERVICES - 1.71% IMS Health, Inc. 36,600 909,876 ----------- HOTELS & RESTAURANTS - 0.75% Outback Steakhouse, Inc. 9,000 397,890 ----------- HOUSEHOLD PRODUCTS - 1.22% Newell Rubbermaid, Inc. 28,400 646,668 ----------- INDUSTRIAL MACHINERY - 4.93% Cooper Cameron Corp. * 10,800 503,280 Dover Corp. 30,000 1,192,500 ITT Industries, Inc. 5,100 378,471 W.W. Grainger, Inc. 11,500 544,985 ----------- 2,619,236 INDUSTRIALS - 0.92% Rockwell Automation, Inc 13,700 487,720 ----------- INSURANCE - 3.02% ACE, Ltd. 14,000 579,880 MGIC Investment Corp. 7,000 398,580 Principal Financial Group, Inc. 19,000 628,330 ----------- 1,606,790 LEISURE TIME - 2.40% Brunswick Corp. 40,000 1,273,200 ----------- LIFE SCIENCES - 1.87% Waters Corp. * 30,000 994,800 ----------- MANUFACTURING - 3.85% Mettler-Toledo International, Inc. * 15,300 645,813 Pentair, Inc. 15,000 685,500 SPX Corp. * 12,200 717,482 ----------- 2,048,795 NEWSPAPERS - 0.44% Lee Enterprises, Inc. 5,400 235,710 ----------- OFFICE FURNISHINGS & SUPPLIES - 1.00% Herman Miller, Inc. * 21,900 531,513 ----------- PETROLEUM SERVICES - 4.04% BJ Services Company * 14,000 502,600 Noble Corp. * 14,000 500,920 Smith International, Inc. * 12,200 506,544 Valero Energy Corp. 13,700 634,858 ----------- 2,144,922 PHARMACEUTICALS - 1.57% AmerisourceBergen Corp. 5,800 324,885 Teva Pharmaceutical Industries, Ltd., ADR (a) 9,000 510,390 ----------- 835,275 POLLUTION CONTROL - 1.69% Republic Services, Inc. 35,000 897,050 ----------- PUBLISHING - 0.96% The New York Times Company, Class A 10,700 511,353 ----------- RETAIL GROCERY - 1.85% Safeway, Inc. * (a) 18,500 405,335 The Kroger Company * 31,200 577,512 ----------- 982,847 RETAIL TRADE - 1.01% Family Dollar Stores, Inc. 15,000 538,200 ----------- SEMICONDUCTORS - 3.88% ASML Holding NV * 29,400 589,470 Microchip Technology, Inc. 16,800 560,448 Novellus Systems, Inc. * 10,400 437,320 Xilinx, Inc. * 12,200 472,628 ----------- 2,059,866 SOFTWARE - 2.50% Computer Associates International, Inc. * 48,700 1,331,458 ----------- TOTAL COMMON STOCK (Cost: $35,147,821) $41,119,514 -----------
The accompanying notes are an integral part of the financial statements. 128 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ----------- ------------ SHORT TERM INVESTMENTS - 3.69% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 1,962,261 $ 1,962,261 ------------ REPURCHASE AGREEMENTS - 18.96% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.85%, to be repurchased at $10,080,476 on 01/02/2004, collateralized by $9,435,000 Federal National Mortgage Association, 5.50% due 02/15/2006 (valued at $10,284,150, including interest). $10,080,000 $ 10,080,000 ------------ TOTAL INVESTMENTS (MID CAP CORE TRUST) (Cost: $47,190,082) $ 53,161,775 ============
GLOBAL EQUITY TRUST
SHARES VALUE --------- ----------- COMMON STOCK - 81.23% AUSTRALIA - 1.83% APN News & Media * 613,844 $ 1,848,776 Brambles Industries, Ltd. * 340,700 1,354,479 Lend Lease Corp. * 165,600 1,253,120 Qantas Airways, Ltd., ADR * 1,312,771 3,252,005 ----------- 7,708,380 BERMUDA - 3.26% Accenture, Ltd., Class A * 77,649 2,043,722 ACE, Ltd. 128,465 5,321,020 Willis Group Holdings, Ltd. 50,000 1,703,500 XL Capital, Ltd., Class A 60,150 4,664,632 ----------- 13,732,874 BRAZIL - 1.96% Aracruz Celulose SA, ADR 35,600 1,247,424 Companhia Vale Do Rio Doce, ADR 35,100 2,053,350 Empresa Brasileira de Aeronautica SA, ADR 40,700 1,425,721 Petroleo Brasileiro SA, ADR 66,000 1,929,840 Unibanco Uniao De Bancos Brasileiros, GDR * 64,426 1,607,429 ----------- 8,263,764 CANADA - 2.04% Abitibi Consolidated Inc. 489,639 3,928,933 Canadian National Railway Company * 23,100 1,461,768 Canadian Natural Resources, Ltd. (a) 63,270 3,200,340 ----------- 8,591,041 FINLAND - 1.09% Sampo Oyj, A Shares * 292,800 3,025,091 Stora Enso Oyj-R Shares * 116,423 1,566,619 ----------- 4,591,710 FRANCE - 3.64% Aventis SA * 60,400 3,987,693 Axa, ADR 61,700 1,324,699 Suez SA * 186,500 3,743,243 Total SA, B Shares * 33,679 6,254,753 ----------- 15,310,388 GERMANY - 2.18% Adidas-Salomon AG * 11,800 1,342,528 BASF AG * 14,860 834,665 Bayer AG * 45,200 1,322,373 Deutsche Post AG * 63,700 1,312,232 E.ON AG * 21,200 1,382,025 Muenchener Rueckversicherungs-Gesellschaft AG *(a) 24,720 2,993,751 ----------- 9,187,574 HONG KONG - 4.59% Cheung Kong Holdings, Ltd. * 983,000 7,786,765 China Mobile (Hong Kong), Ltd. * 416,500 1,276,793 CNOOC, Ltd. * 1,491,500 2,929,689 Hutchison Whampoa, Ltd. * 535,000 3,927,870 Shangri-La Asia, Ltd. * (a) 1,336,000 1,238,989 Sun Hung Kai Properties, Ltd. * 110,000 906,778 Swire Pacific, Ltd., Class A * 203,500 1,252,913 ----------- 19,319,797 INDIA - 0.10% Gujarat Ambuja Cements, Ltd., GDR 61,700 408,454 ----------- IRELAND - 0.37% Allied Irish Banks PLC - London * 96,592 1,539,519 ----------- ISRAEL - 0.69% Check Point Software Technologies, Ltd. * 172,400 2,899,768 ----------- ITALY - 0.82% Eni SPA * 183,000 3,449,341 ----------- JAPAN - 6.55% Canon, Inc. * 54,000 2,515,145 Denso Corp. * 65,800 1,295,916 Hitachi, Ltd. * 566,000 3,412,853 Kyocera Corp. * 34,600 2,305,913 Nintendo Company, Ltd. * 14,200 1,325,431 Nippon Telegraph & Telephone Corp. * 800 3,860,550 Nippon Telegraph & Telephone Corp., ADR 118,593 2,912,644 Nomura Securities Company, Ltd. * 244,000 4,156,438 Ono Pharmaceutical Company, Ltd. * 32,500 1,222,523 Sompo Japan Insurance * 159,000 1,307,500 Sony Corp. * 37,600 1,302,058 Tokyo Gas Company * (a) 550,000 1,961,077 ----------- 27,578,048 SOUTH KOREA - 5.77% Hana Bank * 66,400 1,226,018 Kookmin Bank ADR 151,415 5,729,544 Koram Bank * 143,360 1,684,465 KT Corp. * 47,380 1,773,519 Posco, Ltd. * 9,900 1,354,343 Samsung Electronics Company * 13,530 5,121,301 Shinhan Financial Group Company, Ltd. 116,650 1,865,029 SK Telecom Company, Ltd., ADR 297,762 5,553,261 ----------- 24,307,480 MEXICO - 1.81% Cemex SA, ADR 49,200 1,289,040 Grupo Financiero Bancomer, SA de CV * 2,588,104 2,211,071 Telefonos de Mexico SA de CV, ADR, Class L 124,770 4,121,153 ----------- 7,621,264 NETHERLANDS - 2.49% Akzo Nobel NV * 63,900 2,463,632 Koninklijke (Royal) Philips Electronics NV * 43,100 1,257,134 Reed Elsevier NV * 186,182 2,310,614 Royal Dutch Petroleum Company * 84,629 4,457,065 ----------- 10,488,445
The accompanying notes are an integral part of the financial statements. 129 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ---------- ------------ NEW ZEALAND - 0.81% Telecom Corp. of New Zealand, Ltd. * 973,325 $ 3,424,569 ------------ PHILIPPINES - 0.64% Ayala Corp. * 13,913,600 1,303,147 Ayala Land, Inc. * 12,625,300 1,387,146 ------------ 2,690,293 PORTUGAL - 0.36% Portugal Telecom * 151,499 1,523,232 ------------ SINGAPORE - 0.96% DBS Group Holdings, Ltd. * 466,000 4,033,563 ------------ SPAIN - 1.23% Iberdrola SA * 125,532 2,478,431 Repsol-YPF SA * 139,674 2,720,687 ------------ 5,199,118 SWEDEN - 0.36% Securitas AB-B Shares * 96,400 1,300,022 SKF AB-B Shares * 5,340 206,390 ------------ 1,506,412 SWITZERLAND - 2.33% Nestle SA * 24,961 6,233,694 Novartis AG-Reg Shares * 50,800 2,305,358 UBS AG-Registered * 18,700 1,280,118 ------------ 9,819,170 TAIWAN - 1.37% Cathay Financial Holdings Company, Ltd. 1,653,000 2,483,152 Chunghwa Telecom Company Ltd., ADR 88,300 1,280,350 Compal Electronics, Inc. * 549,000 751,944 Taiwan Semiconductor Manufacturing Company, Ltd. * 675,000 1,262,518 ------------ 5,777,964 UNITED KINGDOM - 10.54% AstraZeneca Group PLC * 81,302 3,889,437 BHP Billiton PLC * 497,874 4,337,005 BP PLC * 290,700 2,350,682 Bristish Aerospace Systems PLC * 431,900 1,297,146 British Land Company PLC * 128,500 1,339,574 Cadbury Schweppes PLC * 331,500 2,427,632 Dixons Group PLC * 1,163,924 2,887,953 GlaxoSmithKline PLC * 201,491 4,603,799 HSBC Holdings PLC * 245,099 3,841,375 National Grid Transco PLC * 185,800 1,327,479 Pearson PLC * 53,000 588,460 Rio Tinto PLC * 150,373 4,141,775 Rolls-Royce Group PLC * 744,600 2,355,917 Royal Bank of Scotland PLC * 84,172 2,473,137 Shell Transport & Trading Company PLC * 181,800 1,348,390 Smiths Group PLC * 106,900 1,261,333 Vodafone Group PLC * 1,592,693 3,937,609 ------------ 44,408,703 UNITED STATES - 23.44% Abbott Laboratories, 27,100 1,262,860 American International Group, Inc. 64,620 4,283,014 AmerisourceBergen Corp. 34,954 1,962,667 AT&T Wireless Services, Inc. * 471,500 3,767,285 Bank of New York Company, Inc. * 180,847 5,989,653 BMC Software, Inc. * 278,563 5,195,200 Bristol-Myers Squibb Company * 147,500 4,218,500 Cadence Design Systems, Inc. * 284,156 5,109,125 Cardinal Health, Inc. 40,370 2,469,029 CIGNA Corp. * 107,741 6,195,107 Dow Chemical Company * 45,329 1,884,326 DTE Energy Company * 96,371 3,797,017 Entergy Corp. 22,900 1,308,277 Federal Home Loan Mortgage Corp. 67,846 3,956,779 H & R Block, Inc. 52,207 2,890,702 Hubbell, Inc., Class B * 27,800 1,225,980 Invitrogen Corp. * 33,800 2,366,000 J.P. Morgan Chase & Company * 89,900 3,302,027 Johnson & Johnson 38,146 1,970,622 King Pharmaceuticals, Inc. * 140,700 2,147,082 Morgan Stanley 22,400 1,296,288 Noble Corp. * 50,300 1,799,734 Pactiv Corp. * 215,331 5,146,411 Pepco Holdings, Inc. 198,832 3,885,177 Pfizer, Inc. 110,472 3,902,976 R.R. Donnelley & Sons Company 95,900 2,891,385 Raytheon Company * 73,100 2,195,924 Tenet Healthcare Corp. * 239,474 3,843,558 The Boeing Company * 69,500 2,928,730 Time Warner, Inc. * 75,100 1,351,049 Toys R Us, Inc. * 329,828 4,169,027 ------------ 98,711,511 TOTAL COMMON STOCK (Cost: $319,166,422) $342,092,382 ------------
SHARES VALUE ---------- ------------ PREFERRED STOCK - 0.31% GERMANY - 0.31% Volkswagen AG - Non Voting Preferred * 36,300 $ 1,314,916 ------------ TOTAL PREFERRED STOCK (Cost: $1,294,532) $ 1,314,916 ------------
PRINCIPAL AMOUNT VALUE ----------- ------------ SHORT TERM INVESTMENTS - 1.61% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 6,788,101 $ 6,788,101 ------------ REPURCHASE AGREEMENTS - 16.85% Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.40%, to be repurchased at $70,948,577 on 01/02/2004, collateralized by $69,090,000 U.S. Treasury Notes, 5.875% due 11/15/2004 (valued at $72,898,777, including interest). $70,947,000 $ 70,947,000 ------------ TOTAL INVESTMENTS (GLOBAL EQUITY TRUST) (Cost: $398,196,055) $421,142,399 ============
The Trust had the following five top industry concentrations at December 31, 2003 (as a percentage of total value of investments): Insurance 7.19% Banking 6.60% Pharmaceuticals 6.12% Financial Services 5.16% Business Services 4.25%
The accompanying notes are an integral part of the financial statements. 130 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) STRATEGIC GROWTH TRUST
SHARES VALUE ------- ---------- COMMON STOCK - 91.33% ADVERTISING - 1.72% Getty Images, Inc. * 18,240 $ 914,371 Lamar Advertising Company * 70,860 2,644,495 Monster Worldwide, Inc. * 51,900 1,139,724 ---------- 4,698,590 AIR TRAVEL - 0.21% Southwest Airlines Company * 34,700 560,058 ---------- APPAREL & TEXTILES - 0.88% Reebok International, Ltd. 60,950 2,396,554 ---------- BANKING - 1.61% Bank of New York Company, Inc. * 60,540 2,005,085 Northern Trust Corp. 51,190 2,376,240 ---------- 4,381,325 BIOTECHNOLOGY - 1.92% Amgen, Inc. * 32,280 1,994,904 Applera Corp.-Applied Biosystems Group * 57,820 1,197,452 Genzyme Corp. * 41,270 2,036,262 ---------- 5,228,618 BROADCASTING - 5.59% Clear Channel Communications, Inc. 78,320 3,667,726 Entercom Communications Corp. * (a) 16,140 854,775 Univision Communications, Inc., Class A * 52,280 2,074,993 Viacom, Inc., Class B 132,900 5,898,102 Westwood One, Inc. * 80,130 2,741,247 ---------- 15,236,843 BUSINESS SERVICES - 1.21% DST Systems, Inc. * (a) 34,560 1,443,226 SunGuard Data Systems, Inc. * 19,200 532,032 The BISYS Group, Inc. * 88,090 1,310,779 ---------- 3,286,037 CABLE AND TELEVISION - 2.57% Comcast Corp.-Special Class A * 112,520 3,519,625 Cox Communications, Inc., Class A * 29,840 1,027,988 EchoStar Communications Corp., Class A * 29,910 1,016,940 Time Warner, Inc. * 80,720 1,452,153 ---------- 7,016,706 CELLULAR COMMUNICATIONS - 1.41% AT&T Wireless Services, Inc. * 257,740 2,059,343 Sprint Corp. (PCS Group) * 163,690 919,938 Vodafone Group PLC, ADR (a) 34,030 852,111 ---------- 3,831,392 COMPUTERS & BUSINESS EQUIPMENT - 3.19% Dell, Inc. * 108,690 3,691,112 International Business Machines Corp. 53,970 5,001,940 ---------- 8,693,052 COSMETICS & TOILETRIES - 0.97% Avon Products, Inc. 39,300 2,652,357 ---------- ELECTRICAL EQUIPMENT - 3.22% Cooper Industries, Ltd., Class A * 17,900 1,036,947 Emerson Electric Company 19,810 1,282,697 General Electric Company 156,590 4,851,158 Molex, Inc. * (a) 46,230 1,612,965 ---------- 8,783,767 ELECTRONICS - 2.47% Amphenol Corp., Class A * (a) 10,200 652,086 Flextronics International, Ltd. * 113,580 1,685,527 Foundry Networks, Inc. * 48,170 1,317,931 Synopsys, Inc. * 32,560 1,099,226 Thermo Electron Corp. * 78,390 1,975,428 ---------- 6,730,198 FINANCIAL SERVICES - 7.59% American Express Company, 89,450 4,314,173 Citigroup, Inc. 87,410 4,242,881 Federal National Mortgage Association 19,620 1,472,677 MBNA Corp. 91,740 2,279,739 Mellon Financial Corp. 38,360 1,231,740 Merrill Lynch & Company, Inc. 61,930 3,632,195 SLM Corp. 6,760 254,717 The Goldman Sachs Group, Inc. 32,930 3,251,179 ---------- 20,679,301 FOOD & BEVERAGES - 0.87% PepsiCo, Inc. 50,760 2,366,431 ---------- HEALTHCARE PRODUCTS - 2.79% Baxter International, Inc. * 24,900 759,948 Johnson & Johnson 91,220 4,712,425 Medtronic, Inc. 43,780 2,128,146 ---------- 7,600,519 HOTELS & RESTAURANTS - 2.21% Hilton Hotels Corp. 54,740 937,696 McDonald's Corp. 76,720 1,904,958 Outback Steakhouse, Inc. 54,840 2,424,476 Starwood Hotels & Resorts Worldwide, Inc. * 21,360 768,319 ---------- 6,035,449 INDUSTRIAL MACHINERY - 0.33% Parker-Hannifin Corp. 15,050 895,475 ---------- INSURANCE - 4.66% ACE, Ltd. 44,840 1,857,273 American International Group, Inc. 74,730 4,953,104 Hartford Financial Services Group, Inc. 44,830 2,646,315 Marsh & McLennan Companies, Inc. 29,210 1,398,867 UNUMProvident Corp. (a) 60,060 947,146 XL Capital, Ltd., Class A 11,730 909,662 ---------- 12,712,367 INTERNET RETAIL - 1.11% InterActiveCorp * 89,240 3,027,913 ---------- INTERNET SOFTWARE - 4.90% Akamai Technologies, Inc. * (a) 124,670 1,340,202 Cisco Systems, Inc. * 360,190 8,749,015 Juniper Networks, Inc. * (a) 41,500 775,220 Networks Associates, Inc. * 165,120 2,483,405 ---------- 13,347,842 LEISURE TIME - 0.28% Carnival Corp. 18,030 716,332 The Walt Disney Company * 2,000 46,660 ---------- 762,992 MANUFACTURING - 2.67% Danaher Corp. * 11,680 1,071,640 Eaton Corp. 4,640 501,027 Illinois Tool Works, Inc. 16,310 1,368,572 Tyco International, Ltd. * 163,640 4,336,460 ---------- 7,277,699 OFFICE FURNISHINGS & SUPPLIES - 0.71% Staples, Inc. * 70,600 1,927,380 ---------- PHARMACEUTICALS - 6.56% Abbott Laboratories, 57,440 2,676,704 Gilead Sciences, Inc. * 71,260 4,143,057 Pfizer, Inc. 158,794 5,610,192 Schering-Plough Corp. 162,660 2,828,657 Wyeth 61,760 2,621,712 ---------- 17,880,322
The accompanying notes are an integral part of the financial statements. 131 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ------------ PUBLISHING - 0.77% The New York Times Company, Class A 43,690 $ 2,087,945 ------------ RETAIL TRADE - 7.78% Chico's FAS, Inc. * 5,730 211,724 CVS Corp. 45,000 1,625,400 Home Depot, Inc. 27,560 978,104 Hot Topic, Inc. * 27,700 816,042 Kohl's Corp. * 79,320 3,564,641 Pier 1 Imports, Inc. 33,480 731,873 Rite Aid Corp. * (a) 173,570 1,048,363 Target Corp. 117,010 4,493,184 The TJX Companies, Inc. 57,590 1,269,859 Wal-Mart Stores, Inc. 75,470 4,003,683 Walgreen Company 34,670 1,261,295 Williams-Sonoma, Inc. * 34,270 1,191,568 ------------ 21,195,736 SEMICONDUCTORS - 7.82% Analog Devices, Inc. 86,340 3,941,421 Linear Technology Corp. 48,960 2,059,747 Marvell Technology Group, Ltd. * 51,110 1,938,602 Maxim Integrated Products, Inc. 44,110 2,196,678 Microchip Technology, Inc. 63,710 2,125,366 Novellus Systems, Inc. * 47,240 1,986,442 PMC-Sierra, Inc. * (a) 70,040 1,411,306 Texas Instruments, Inc. 87,930 2,583,383 Xilinx, Inc. * 79,010 3,060,848 ------------ 21,303,793 SOFTWARE - 8.00% Avid Technology, Inc. * (a) 16,520 792,960 BEA Systems, Inc. * (a) 83,950 1,032,585 Manhattan Associates, Inc. * (a) 15,110 417,640 Mercury Interactive Corp. * (a) 55,010 2,675,686 Microsoft Corp. 391,740 10,788,520 Oracle Corp. * 186,840 2,466,288 VERITAS Software Corp. * 97,540 3,624,587 ------------ 21,798,266 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 3.79% ADTRAN, Inc. 102,780 3,186,180 Amdocs, Ltd. * 44,420 998,562 Corning, Inc. * 125,800 1,312,094 Nokia Oyj, ADR 141,000 2,397,000 Nortel Networks Corp. * 456,400 1,930,572 QUALCOMM, Inc. 9,550 515,031 ------------ 10,339,439 TRUCKING & FREIGHT - 1.52% Fedex Corp. 36,070 2,434,725 United Parcel Service, Inc., Class B 22,880 1,705,704 ------------ 4,140,429 TOTAL COMMON STOCK (Cost: $219,185,670) $248,874,795 ------------
PRINCIPAL AMOUNT VALUE ----------- ------------ SHORT TERM INVESTMENTS - 8.67% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $11,640,290 $ 11,640,290 Federal Home Loan Bank Discount Note, 0.75% due 01/02/2004 11,975,000 11,974,751 ------------ $ 23,615,041 TOTAL INVESTMENTS (STRATEGIC GROWTH TRUST) (Cost: $242,800,711) $272,489,836 ============
CAPITAL APPRECIATION TRUST
SHARES VALUE ------- ----------- COMMON STOCK - 92.09% BIOTECHNOLOGY - 5.23% Amgen, Inc. * 92,800 $ 5,735,040 Genentech, Inc. * 38,300 3,583,731 MedImmune, Inc. * 48,100 1,221,740 ----------- 10,540,511 BROADCASTING - 5.56% Univision Communications, Inc., Class A * (a) 72,200 2,865,618 Clear Channel Communications, Inc. 40,300 1,887,249 Hughes Electronics Corp. * 75,735 1,253,414 Viacom, Inc., Class B 116,900 5,188,022 ----------- 11,194,303 CELLULAR COMMUNICATIONS - 1.34% Vodafone Group PLC, ADR 107,600 2,694,304 ----------- COLLEGES & UNIVERSITIES - 1.00% Apollo Group, Inc., Class A * 29,700 2,019,600 ----------- COMPUTERS & BUSINESS EQUIPMENT - 6.17% Dell, Inc. * 130,000 4,414,800 EMC Corp. * 207,800 2,684,776 Hewlett-Packard Company * 83,800 1,924,886 International Business Machines Corp. 36,800 3,410,624 ----------- 12,435,086 COSMETICS & TOILETRIES - 1.79% Avon Products, Inc. 30,200 2,038,198 The Procter & Gamble Company 15,800 1,578,104 ----------- 3,616,302 ELECTRICAL EQUIPMENT - 2.44% General Electric Company 159,000 4,925,820 ----------- ELECTRONICS - 2.06% Agilent Technologies, Inc. * 126,800 3,707,632 Harman International, Inc. 6,000 443,880 ----------- 4,151,512 FINANCIAL SERVICES - 9.56% American Express Company, 101,200 4,880,876 Citigroup, Inc. 94,200 4,572,468 Merrill Lynch & Company, Inc. 55,400 3,249,210 State Street Corp. (b) 58,500 3,046,680 The Goldman Sachs Group, Inc. 35,600 3,514,788 ----------- 19,264,022 FOOD & BEVERAGES - 2.59% Anheuser-Busch Companies, Inc. 28,100 1,480,308 Starbucks Corp. * 113,200 3,742,392 ----------- 5,222,700 HEALTHCARE PRODUCTS - 1.40% Alcon, Inc. (a) 9,100 550,914 Medtronic, Inc. 46,800 2,274,948 ----------- 2,825,862 HEALTHCARE SERVICES - 0.46% Caremark Rx, Inc. * 36,900 934,677 ----------- HOTELS & RESTAURANTS - 1.61% Marriott International, Inc., Class A 20,400 942,480 McDonald's Corp. 92,500 2,296,775 ----------- 3,239,255
The accompanying notes are an integral part of the financial statements. 132 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ------------ INSURANCE - 1.39% American International Group, Inc. 42,400 $ 2,810,272 ------------ INTERNET CONTENT - 1.46% Yahoo!, Inc. * 65,100 2,940,567 ------------ INTERNET RETAIL - 2.24% eBay, Inc. * 40,400 2,609,436 InterActiveCorp * 56,000 1,900,080 ------------ 4,509,516 INTERNET SOFTWARE - 3.13% Cisco Systems, Inc. * 259,500 6,303,255 ------------ MANUFACTURING - 0.95% 139 Company 22,500 1,913,175 ------------ PETROLEUM SERVICES - 4.48% BJ Services Company * 51,600 1,852,440 Schlumberger, Ltd. * 66,100 3,616,992 Total SA, ADR 38,400 3,552,384 ------------ 9,021,816 PHARMACEUTICALS - 10.28% Allergan, Inc. 26,800 2,058,508 AstraZeneca PLC, ADR (a) 46,700 2,259,346 Forest Laboratories, Inc. * 16,700 1,032,060 Gilead Sciences, Inc. * 46,400 2,697,696 Novartis AG, ADR (a) 51,300 2,354,157 Pfizer, Inc. 131,620 4,650,135 Roche Holdings, Ltd. (a) 28,200 2,844,511 Teva Pharmaceutical Industries, Ltd., ADR 49,700 2,818,487 ------------ 20,714,900 RETAIL GROCERY - 0.93% Whole Foods Market, Inc. (a) 27,800 1,866,214 ------------ RETAIL TRADE - 7.92% Bed Bath & Beyond, Inc. * 99,700 4,321,995 CarMax, Inc. * 5,400 167,022 Costco Wholesale Corp. * 52,800 1,963,104 Lowe's Companies, Inc. 34,000 1,883,260 Tiffany & Company 84,900 3,837,480 Wal-Mart Stores, Inc. 71,500 3,793,075 ------------ 15,965,936 SEMICONDUCTORS - 10.15% Altera Corp. * 98,500 2,235,950 Analog Devices, Inc. 34,500 1,574,925 Applied Materials, Inc. * 49,500 1,111,275 Intel Corp. 219,800 7,077,560 KLA-Tencor Corp. * 51,100 2,998,037 Marvell Technology Group, Ltd. * 12,300 466,539 Texas Instruments, Inc. 169,800 4,988,724 ------------ 20,453,010 SOFTWARE - 6.36% Electronic Arts, Inc. * 41,400 1,978,092 Microsoft Corp. 211,400 5,821,956 PeopleSoft, Inc. * 68,000 1,550,400 SAP AG, ADR (a) 83,200 3,457,792 ------------ 12,808,240 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.78% Motorola, Inc. * 30,400 427,728 Nokia Oyj, ADR 33,500 569,500 QUALCOMM, Inc. 10,500 566,265 ------------ 1,563,493 TRANSPORTATION - 0.81% Harley-Davidson, Inc. 34,300 1,630,279 ------------ TOTAL COMMON STOCK (Cost: $155,293,046) $185,564,627 ------------
PRINCIPAL AMOUNT VALUE ---------- ------------ SHORT TERM INVESTMENTS - 3.51% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $7,070,818 $ 7,070,818 ------------ REPURCHASE AGREEMENTS - 4.40% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $8,872,197 on 01/02/2004, collateralized by $6,165,000 U.S. Treasury Bonds, 9.25% due 2/15/2016 (valued at $9,054,844, including interest) $8,872,000 $ 8,872,000 ------------ TOTAL INVESTMENTS (CAPITAL APPRECIATION TRUST) (Cost: $171,235,864) $201,507,445 ============
QUANTITATIVE ALL CAP TRUST
SHARES VALUE ------ -------- COMMON STOCK - 78.55% AEROSPACE - 0.86% United Defense Industries, Inc. * 700 $ 22,316 United Technologies Corp. 300 28,431 -------- 50,747 AGRICULTURE - 0.31% Agrium, Inc. * 1,100 18,106 -------- AIR FREIGHT - 0.30% ExpressJet Holdings, Inc. * (a) 1,200 18,000 -------- APPAREL & TEXTILES - 0.58% Coach, Inc. * (a) 900 33,975 -------- AUTOMOBILES - 1.00% General Motors Corp. (a) 1,100 58,740 -------- BANKING - 6.14% Bank of America Corp. 1,700 136,731 Doral Financial Corp. 400 12,912 Flagstar Bancorp, Inc. (a) 3,000 64,260 Hudson United Bancorp (a) 1,400 51,730 Unibanco Uniao De Bancos Brasileiros, GDR * (a) 900 22,455 US Bancorp (a) 2,500 74,450 -------- 362,538 BROADCASTING - 0.53% Viacom, Inc., Class B 700 31,066 --------
The accompanying notes are an integral part of the financial statements. 133 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ -------- BUSINESS SERVICES - 2.80% Affiliated Computer Services, Inc., Class A * (a), 300 $ 16,338 Computer Sciences Corp. * 400 17,692 First Data Corp. * (a) 1,200 49,308 FTI Consulting, Inc. * (a) 1,000 23,370 Memberworks, Inc. * (a) 800 21,736 Pitney Bowes, Inc. (a) 900 36,558 -------- 165,002 CELLULAR COMMUNICATIONS - 1.02% Vodafone Group PLC, ADR (a) 2,400 60,096 -------- CHEMICALS - 0.50% Crompton Corp. (a) 2,200 15,774 E.I. Du Pont De Nemours & Company 300 13,767 -------- 29,541 COMPUTERS & BUSINESS EQUIPMENT - 2.21% Cognizant Technology Solutions Corp., Class A * (a) 500 22,820 Dell, Inc. * 2,400 81,504 Electronics For Imaging, Inc. * (a) 1,000 26,020 -------- 130,344 CONSTRUCTION & MINING EQUIPMENT - 0.34% Matrix Service Company * (a) 1,100 19,965 -------- CONTAINERS & GLASS - 0.36% Owens-Illinois, Inc. * 1,800 21,402 -------- COSMETICS & TOILETRIES - 2.64% Avon Products, Inc. (a) 1,500 101,235 Chattem, Inc. * (a) 800 14,320 The Procter & Gamble Company 400 39,952 -------- 155,507 CRUDE PETROLEUM & NATURAL GAS - 1.97% Anadarko Petroleum Corp. (a) 600 30,606 Devon Energy Corp. 1,500 85,890 -------- 116,496 DOMESTIC OIL - 0.63% Forest Oil Corp. * (a) 800 22,856 Houston Exploration Company * 400 14,608 -------- 37,464 ELECTRICAL EQUIPMENT - 1.48% General Electric Company 1,800 55,764 Rayovac Corp. * (a) 1,500 31,425 -------- 87,189 ELECTRIC UTILITIES - 1.38% Dominion Resources, Inc. 200 12,766 Entergy Corp. 500 28,565 Exelon Corp. 600 39,816 -------- 81,147 ELECTRONICS - 0.87% L-3 Communications Holdings, Inc. * (a) 1,000 51,360 -------- FINANCIAL SERVICES - 9.34% Bear Stearns Companies, Inc. 1,100 87,945 Citigroup, Inc. 400 19,416 Countrywide Financial Corp. 400 30,340 Federal National Mortgage Association 500 37,530 H & R Block, Inc. (a) 1,100 60,907 J.P. Morgan Chase & Company * 2,400 88,152 Lehman Brothers Holdings, Inc. 700 54,054 Merrill Lynch & Company, Inc. 1,300 76,245 Washington Mutual, Inc. 2,400 96,288 -------- 550,877 FOOD & BEVERAGES - 1.62% PepsiCo, Inc. 1,800 83,916 Sensient Technologies Corp. (a) 600 11,862 -------- 95,778 GAS & PIPELINE UTILITIES - 1.08% ONEOK, Inc. 2,900 64,032 -------- HEALTHCARE PRODUCTS - 3.18% Baxter International, Inc. * (a) 800 24,416 Johnson & Johnson 2,400 123,984 Kensey Nash Corp. * (a) 600 13,950 Stryker Corp. (a) 300 25,503 -------- 187,853 HEALTHCARE SERVICES - 3.35% Caremark Rx, Inc. * (a) 1,600 40,528 Covance, Inc. * (a) 1,900 50,920 Coventry Health Care, Inc. * (a) 200 12,898 The Advisory Board Company * (a) 500 17,455 UnitedHealth Group, Inc. 1,300 75,634 -------- 197,435 HOTELS & RESTAURANTS - 1.12% Applebee's International, Inc. (a) 700 27,489 Krispy Kreme Doughnuts, Inc. * (a) 500 18,300 Landry's Restaurants, Inc. * (a) 800 20,576 -------- 66,365 HOUSEHOLD APPLIANCES - 1.18% Black & Decker Corp. (a) 1,000 49,320 Jacuzzi Brands, Inc. * 2,900 20,561 -------- 69,881 INSURANCE - 3.54% PartnerRe, Ltd. (a) 1,700 98,685 The Allstate Corp. 1,700 73,134 UICI * (a) 2,800 37,184 -------- 209,003 INTERNET CONTENT - 0.21% Ask Jeeves, Inc. * 700 12,684 -------- INTERNET SERVICE PROVIDER - 0.27% Digitas, Inc. * 1,700 15,844 -------- INTERNET SOFTWARE - 2.30% Cisco Systems, Inc. * 4,600 111,734 Juniper Networks, Inc. * (a) 1,300 24,284 -------- 136,018 MANUFACTURING - 0.47% Danaher Corp. * (a) 300 27,525 -------- PAPER - 0.22% International Paper Company (a) 300 12,933 -------- PETROLEUM SERVICES - 1.63% ChevronTexaco Corp. 400 34,556 Exxon Mobil Corp. 1,500 61,500 -------- 96,056 PHARMACEUTICALS - 3.57% Abbott Laboratories, 600 27,960 Forest Laboratories, Inc. * 400 24,720 Merck & Company, Inc. 300 13,860 Pfizer, Inc. 3,600 127,188 Wyeth 400 16,980 -------- 210,708 PUBLISHING - 1.06% Gannett Company, Inc. 700 62,412 --------
The accompanying notes are an integral part of the financial statements. 134 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) SHARES VALUE ------ ---------- REAL ESTATE - 0.66% General Growth Properties, Inc., REIT 1,400 $ 38,850 ---------- RETAIL TRADE - 7.30% Bed Bath & Beyond, Inc. * 2,000 86,700 Chico's FAS, Inc. * 1,000 36,950 CVS Corp. 2,600 93,912 Home Depot, Inc. 1,300 46,137 The Neiman Marcus Group, Inc., Class A * (a) 700 37,569 Wal-Mart Stores, Inc. 800 42,440 Walgreen Company 2,400 87,312 ---------- 431,020 SEMICONDUCTORS - 3.80% Altera Corp. * 1,500 34,050 Intel Corp. 2,200 70,840 Linear Technology Corp. 1,100 46,277 Microchip Technology, Inc. 500 16,680 Microsemi Corp. * (a) 1,000 24,580 PMC-Sierra, Inc. * (a) 900 18,135 Semtech Corp. * (a) 600 13,638 ---------- 224,200 SOFTWARE - 4.05% Embarcadero Tech, Inc. * (a) 1,900 30,305 Microsoft Corp. 4,300 118,422 Oracle Corp. * 2,500 33,000 Serena Software, Inc. * (a) 900 16,515 VERITAS Software Corp. * 1,100 40,876 ---------- 239,118 TELEPHONE - 0.99% BellSouth Corp. 1,600 45,280 CenturyTel, Inc. (a) 400 13,048 ---------- 58,328 TOBACCO - 0.83% Altria Group, Inc. 900 48,978 ---------- TRANSPORTATION - 0.86% Alexander & Baldwin, Inc. 600 20,214 C. H. Robinson Worldwide, Inc. 800 30,328 ---------- 50,542 TOTAL COMMON STOCK (Cost: $4,140,745) $4,635,125 ----------
PRINCIPAL AMOUNT VALUE ---------- ---------- SHORT TERM INVESTMENTS - 18.79% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $1,108,592 $1,108,592 ---------- REPURCHASE AGREEMENTS - 2.66% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at $157,006 on 01/02/2004, collateralized by $115,000 U.S. Treasury Bonds, 8.50% due 2/15/2020 (valued at $164,234, including interest) $ 157,000 $ 157,000 ---------- TOTAL INVESTMENTS (QUANTITATIVE ALL CAP TRUST) (Cost: $5,406,337) $5,900,717 ==========
ALL CAP CORE TRUST
SHARES VALUE ------- ----------- COMMON STOCK - 90.81% ADVERTISING - 0.27% Omnicom Group, Inc. * 8,600 $ 751,038 ----------- AEROSPACE - 0.20% Honeywell International, Inc. 3,600 120,348 Lockheed Martin Corp. 8,500 436,900 ----------- 557,248 AGRICULTURE - 0.99% Monsanto Company 97,100 2,794,538 ----------- AIR TRAVEL - 0.04% Southwest Airlines Company * 6,900 111,366 ----------- ALUMINUM - 1.60% Alcoa, Inc. 119,100 4,525,800 ----------- APPAREL & TEXTILES - 0.94% Coach, Inc. * 29,600 1,117,400 NIKE, Inc., Class B 22,600 1,547,196 ----------- 2,664,596 AUTO PARTS - 1.63% American Axle & Manufacturing Holdings, Inc. * 48,800 1,972,496 Autoliv, Inc. 9,400 353,910 Delphi Corp. * 222,400 2,270,704 ----------- 4,597,110 BANKING - 5.91% Bank of America Corp. 78,800 6,337,884 Flagstar Bancorp, Inc. (a) 38,000 813,960 Golden West Financial Corp. 38,600 3,983,134 National City Corp. 33,100 1,123,414 US Bancorp 81,800 2,436,004 Wachovia Corp. 43,100 2,008,029 ----------- 16,702,425 BIOTECHNOLOGY - 2.67% Amgen, Inc. * 71,400 4,412,520 ----------- Charles River Laboratories International, Inc. * 46,100 1,582,613 Genentech, Inc. * 16,600 1,553,262 ----------- 7,548,395 BROADCASTING - 0.85% Hughes Electronics Corp. * 145,133 2,401,951 ----------- BUSINESS SERVICES - 0.78% Acxiom Corp. * (a) 13,400 248,838 BMC Software, Inc. * 39,700 740,405 Coinstar, Inc. * (a) 11,000 198,660 R.R. Donnelley & Sons Company (a) 21,500 648,225 Total Systems Services, Inc. (a) 12,100 376,673 ----------- 2,212,801 CABLE AND TELEVISION - 1.33% Comcast Corp., Class A * 28,500 936,795 Cox Communications, Inc., Class A * 48,700 1,677,715 Time Warner, Inc. * 63,600 1,144,164 ----------- 3,758,674 CELLULAR COMMUNICATIONS - 0.68% AT&T Wireless Services, Inc. * 241,800 1,931,982 ----------- CHEMICALS - 0.52% Dow Chemical Company * 35,100 1,459,107 -----------
The accompanying notes are an integral part of the financial statements. 135 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ----------- COAL - 0.28% CONSOL Energy, Inc. (a) 30,500 $ 789,950 ----------- COLLEGES & UNIVERSITIES - 0.30% University of Phoenix Online * 12,200 840,946 ----------- COMPUTERS & BUSINESS EQUIPMENT - 3.92% Benchmark Electronics, Inc. * 20,550 715,345 Diebold, Inc. 6,000 323,220 EMC Corp. * 155,000 2,002,600 Hewlett-Packard Company * 21,800 500,746 International Business Machines Corp. 59,900 5,551,532 Sandisk Corp. * 17,600 1,076,064 Xerox Corp. * 65,600 905,280 ----------- 11,074,787 CONTAINERS & GLASS - 0.04% Sealed Air Corp. * 1,900 102,866 ----------- COSMETICS & TOILETRIES - 2.05% The Procter & Gamble Company 58,000 5,793,040 ----------- CRUDE PETROLEUM & NATURAL GAS - 2.61% Apache Corp. 2,600 210,860 Occidental Petroleum Corp. * 99,300 4,194,432 Pogo Producing Company 61,400 2,965,620 ----------- 7,370,912 ELECTRICAL EQUIPMENT - 1.49% General Electric Company 135,500 4,197,790 ----------- ELECTRIC UTILITIES - 2.06% Edison International 48,000 1,052,640 Entergy Corp. 50,000 2,856,500 Exelon Corp. 29,000 1,924,440 ----------- 5,833,580 ELECTRONICS - 0.63% InVision Technologies, Inc. * (a) 10,800 362,556 Sanmina-SCI Corp. * 112,600 1,419,886 ----------- 1,782,442 ENERGY - 0.18% Xcel Energy, Inc. * (a) 29,700 504,306 ----------- FINANCIAL SERVICES - 7.62% American Express Company 18,400 887,432 Citigroup, Inc. 180,200 8,746,908 City Holding Company 6,000 210,000 Countrywide Financial Corp. 8,267 627,027 J.P. Morgan Chase & Company * 87,800 3,224,894 Lehman Brothers Holdings, Inc. 27,900 2,154,438 Morgan Stanley 34,100 1,973,367 SLM Corp. 31,500 1,186,920 Washington Mutual, Inc. 62,500 2,507,500 ----------- 21,518,486 FOOD & BEVERAGES - 3.35% Anheuser-Busch Companies, Inc. 52,500 2,765,700 PepsiCo, Inc. 82,300 3,836,826 Starbucks Corp. * 65,600 2,168,736 The Coca-Cola Company 13,600 690,200 ----------- 9,461,462 HEALTHCARE PRODUCTS - 2.67% Guidant Corp. 55,300 3,329,060 IDEXX Laboratories, Inc. * 54,300 2,513,004 Johnson & Johnson 26,100 1,348,326 Respironics, Inc. * 7,600 342,684 ----------- 7,533,074 HEALTHCARE SERVICES - 2.65% Coventry Health Care, Inc. * 6,700 432,083 First Health Group Corp. * 33,300 648,018 Humana, Inc. * 104,800 2,394,680 UnitedHealth Group, Inc. 68,900 4,008,602 ----------- 7,483,383 HOMEBUILDERS - 0.41% M.D.C. Holdings, Inc. 4,000 258,000 Ryland Group, Inc. 5,100 452,064 Toll Brothers, Inc. * (a) 11,400 453,264 ----------- 1,163,328 HOTELS & RESTAURANTS - 0.94% Brinker International, Inc. * 10,100 334,916 CBRL Group, Inc. 49,700 1,901,522 Yum! Brands, Inc. * 12,200 419,680 ----------- 2,656,118 HOUSEHOLD APPLIANCES - 0.42% Whirlpool Corp. 16,200 1,176,930 ----------- INDUSTRIAL MACHINERY - 1.66% Caterpillar, Inc. 40,500 3,362,310 Deere & Company * 20,300 1,320,515 ----------- 4,682,825 INSURANCE - 2.79% American International Group, Inc. 18,000 1,193,040 Fidelity National Financial, Inc. 17,175 666,047 Progressive Corp. 21,300 1,780,467 Prudential Financial, Inc. 23,400 977,418 W.R. Berkley Corp. 93,150 3,255,592 ----------- 7,872,564 INTERNATIONAL OIL - 0.17% ConocoPhillips 7,400 485,218 ----------- INTERNET CONTENT - 0.38% Yahoo!, Inc. * 24,000 1,084,080 ----------- INTERNET RETAIL - 0.12% eBay, Inc. * 5,200 335,868 ----------- INTERNET SOFTWARE - 0.75% Cisco Systems, Inc. * 87,200 2,118,088 ----------- LEISURE TIME - 0.73% Blockbuster, Inc., Class A (a) 102,300 1,836,285 Regal Entertainment Group, Class A (a) 11,700 240,084 ----------- 2,076,369 LIFE SCIENCES - 0.09% PerkinElmer, Inc. * 14,300 244,101 ----------- MANUFACTURING - 3.15% 3M Company 62,100 5,280,363 Carlisle Companies, Inc. 13,100 797,266 Eaton Corp. 26,100 2,818,278 ----------- 8,895,907 MEDICAL-HOSPITALS - 0.27% AmSurg Corp. * (a) 12,800 484,992 Manor Care, Inc. 7,700 266,189 ----------- 751,181 METAL & METAL PRODUCTS - 0.19% Crown Holdings, Inc. * 60,600 549,036 ----------- OFFICE FURNISHINGS & SUPPLIES - 0.06% HON Industries, Inc. 4,000 173,280 -----------
The accompanying notes are an integral part of the financial statements. 136 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ------------ PETROLEUM SERVICES - 2.77% ChevronTexaco Corp. 51,100 $ 4,414,529 Exxon Mobil Corp. 71,600 2,935,600 Veritas DGC, Inc. * (a) 45,300 474,744 ------------ 7,824,873 PHARMACEUTICALS - 5.90% Abbott Laboratories 20,600 959,960 Adolor Corp. * 24,200 484,484 Allergan, Inc. 25,300 1,943,293 Endo Pharmaceutical Holdings, Inc. * 100,700 1,939,482 Gilead Sciences, Inc. * 35,400 2,058,156 Merck & Company, Inc. 93,300 4,310,460 Mylan Laboratories, Inc. 45,150 1,140,489 Pfizer, Inc. 96,800 3,419,944 Pharmaceutical Resources, Inc. * 100 6,515 Watson Pharmaceuticals, Inc. * 8,800 404,800 ------------ 16,667,583 PHOTOGRAPHY - 0.72% Eastman Kodak Company 79,600 2,043,332 ------------ PUBLISHING - 0.51% McGraw-Hill Companies, Inc. 20,800 1,454,336 ------------ REAL ESTATE - 0.78% Annaly Mortgage Management, Inc., REIT 14,000 257,600 Anworth Mortgage Asset Corp., REIT (a) 26,800 373,324 Equity Office Properties Trust, REIT 29,600 848,040 Equity Residential, REIT * 8,200 241,982 Kimco Realty Corp., REIT 5,500 246,125 Simon Property Group, Inc., REIT 5,100 236,334 ------------ 2,203,405 RETAIL GROCERY - 1.38% SUPERVALU, Inc. 14,000 400,260 Sysco Corp. 94,200 3,507,066 ------------ 3,907,326 RETAIL TRADE - 3.14% Chico's FAS, Inc. * 53,600 1,980,520 Claire's Stores, Inc. 125,200 2,358,768 PETsMART, Inc. 45,600 1,085,280 RadioShack Corp. 13,500 414,180 The Gap, Inc. * 68,600 1,592,206 Wal-Mart Stores, Inc. 27,100 1,437,655 ------------ 8,868,609 SEMICONDUCTORS - 4.85% Cree, Inc. * (a) 61,600 1,089,704 Intel Corp. 208,900 6,726,580 International Rectifier Corp. * 8,600 424,926 MEMC Electronic Materials, Inc. * (a) 82,800 796,536 Silicon Laboratories, Inc. * 16,100 695,842 Texas Instruments, Inc. 62,500 1,836,250 Xilinx, Inc. * 54,700 2,119,078 ------------ 13,688,916 SOFTWARE - 2.82% CCC Information Services Group, Inc. * 19,500 329,550 Electronic Arts, Inc. * 54,200 2,589,676 Microsoft Corp. 149,300 4,111,722 Oracle Corp. * 70,900 935,880 ------------ 7,966,828 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.38% Avaya, Inc. * 80,700 1,044,258 QUALCOMM, Inc. 52,800 2,847,504 ------------ 3,891,762 TELEPHONE - 2.97% BellSouth Corp. 89,300 2,527,190 Sprint Corp. (FON Group) 130,600 2,144,452 Verizon Communications, Inc. * 106,100 3,721,988 ------------ 8,393,630 TOYS, AMUSEMENTS & SPORTING GOODS - 0.27% Marval Enterprises, Inc. * (a) 25,800 751,038 ------------ TRUCKING & FREIGHT - 2.93% Hunt (JB) Transport Services, Inc. * 43,800 1,183,038 Ryder Systems, Inc. 96,300 3,288,645 Swift Transportation, Inc. * 100,900 2,120,918 Werner Enterprises, Inc. (a) 87,150 1,698,554 ------------ 8,291,155 TOTAL COMMON STOCK (Cost: $223,594,349) $256,521,741 ------------ PREFERRED STOCK - 0.18% BROADCASTING - 0.18% The News Corp., Ltd., ADR 16,232 491,018 ------------ TOTAL PREFERRED STOCK (Cost: $472,331) $ 491,018 ------------
PRINCIPAL AMOUNT VALUE ---------- ------------ SHORT TERM INVESTMENTS - 3.20% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 7,899,277 $ 7,899,277 United States Treasury Bills 0.89% due 01/29/2004 **** 1,145,000 1,144,232 ------------ $ 9,043,509 REPURCHASE AGREEMENTS - 5.81% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $16,421,365 on 01/02/2004, collateralized by $13,070,000 U.S. Treasury Bonds,7.500% due 11/15/2016 (valued at $16,753,400, including interest). $16,421,000 $ 16,421,000 ------------ TOTAL INVESTMENTS (ALL CAP CORE TRUST) (Cost: $249,531,189) $282,477,268 ============
LARGE CAP GROWTH TRUST
SHARES VALUE ------- ---------- COMMON STOCK - 93.90% AEROSPACE - 0.46% The Boeing Company * 57,500 $2,423,050 ---------- AGRICULTURE - 0.81% Monsanto Company 145,800 4,196,124 ---------- AIR TRAVEL - 0.56% Southwest Airlines Company * 181,800 2,934,252 ----------
The accompanying notes are an integral part of the financial statements. 137 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ----------- APPAREL & TEXTILES - 1.56% Coach, Inc. * 66,700 $ 2,517,925 NIKE, Inc., Class B 53,800 3,683,148 Polo Ralph Lauren Corp., Class A 67,300 1,938,240 ----------- 8,139,313 BANKING - 4.71% Bank of America Corp. 91,200 7,335,216 Bank of New York Company, Inc. * 134,000 4,438,080 Bank One Corp. 165,400 7,540,586 Wachovia Corp. 46,600 2,171,094 Wells Fargo & Company 51,000 3,003,390 ----------- 24,488,366 BIOTECHNOLOGY - 3.21% Amgen, Inc. * 118,600 7,329,480 Cephalon, Inc. * (a) 55,200 2,672,232 Genzyme Corp. * 45,600 2,249,904 Millennium Pharmaceuticals, Inc. * 111,700 2,085,439 Neurocrine Biosciences, Inc. * 11,800 643,572 Protein Design Labs, Inc. * (a) 95,900 1,716,610 ----------- 16,697,237 BROADCASTING - 2.80% Belo Corp., Class A 114,900 3,256,266 Citadel Broadcasting Corp. * 60,000 1,342,200 Societe Television Francaise 1 * (a) 61,400 2,141,351 Univision Communications, Inc., Class A * 59,800 2,373,462 Viacom, Inc., Class B 123,351 5,474,318 ----------- 14,587,597 BUILDING MATERIALS & CONSTRUCTION - 0.62% American Standard Companies, Inc. * 31,900 3,212,330 ----------- BUSINESS SERVICES - 0.42% Ceridian Corp. * 66,900 1,400,886 Charles Schwab Corp. 64,900 768,416 ----------- 2,169,302 CABLE AND TELEVISION - 3.97% British Sky Broadcasting Group PLC-ADR * 76,475 3,895,636 Comcast Corp.-Special Class A * 170,900 5,345,752 Time Warner, Inc. * 633,700 11,400,263 ----------- 20,641,651 CELLULAR COMMUNICATIONS - 1.00% Nextel Communications, Inc., Class A * 112,600 3,159,556 Vodafone Group PLC, ADR (a) 82,900 2,075,816 ----------- 5,235,372 CHEMICALS - 0.71% Dow Chemical Company * 89,300 3,712,201 ----------- COMPUTERS & BUSINESS EQUIPMENT - 5.15% Dell, Inc. * 295,800 10,045,368 EMC Corp. * 274,700 3,549,124 Hewlett-Packard Company * 172,600 3,964,622 International Business Machines Corp. 79,900 7,405,132 Storage Technology Corp. * 71,700 1,846,275 ----------- 26,810,521 CONSTRUCTION MATERIALS - 0.29% Sherwin-Williams Company 43,300 1,504,242 ----------- CONSTRUCTION & MINING EQUIPMENT - 0.27% Rowan Companies, Inc. * 60,600 1,404,102 ----------- COSMETICS & TOILETRIES - 2.73% Alberto Culver Company, Class B 72,200 4,554,376 The Gillette Company * 144,200 5,296,466 The Procter & Gamble Company 43,400 4,334,792 ----------- 14,185,634 ELECTRICAL EQUIPMENT - 2.60% General Electric Company 436,700 13,528,966 ----------- ELECTRIC UTILITIES - 0.30% Allegheny Energy, Inc. * (a) 122,100 1,557,996 ----------- ELECTRONICS - 0.83% Samsung Electronic * 7,300 1,372,400 Solectron Corp. * 316,000 1,867,560 Vishay Intertechnology, Inc. * (a) 47,100 1,078,590 ----------- 4,318,550 FINANCIAL SERVICES - 7.70% Aeon Credit Service Company, Ltd. * 30,300 1,292,491 American Express Company, 135,200 6,520,696 Ameritrade Holding Corp. * 70,400 990,528 Citigroup, Inc. 277,466 13,468,200 Credit Saison Company, Ltd. * 61,800 1,395,958 Deutsche Boerse AG * 13,555 740,358 Federal National Mortgage Association 23,700 1,778,922 Legg Mason, Inc. 32,800 2,531,504 MBNA Corp. 139,900 3,476,515 Morgan Stanley 136,200 7,881,894 ----------- 40,077,066 FOOD & BEVERAGES - 2.10% Dean Foods Company * 27,250 895,707 Kellogg Company 39,600 1,507,968 PepsiCo, Inc. 58,300 2,717,946 The Coca-Cola Company 114,000 5,785,500 ----------- 10,907,121 HEALTHCARE PRODUCTS - 3.25% Boston Scientific Corp. * 63,200 2,323,232 Johnson & Johnson 90,100 4,654,566 Medtronic, Inc. 101,400 4,929,054 St. Jude Medical, Inc. * 38,400 2,355,840 Stryker Corp. 31,000 2,635,310 ----------- 16,898,002 HOTELS & RESTAURANTS - 0.66% CBRL Group, Inc. 32,100 1,228,146 Hilton Group PLC * 547,247 2,195,502 ----------- 3,423,648 INDUSTRIAL MACHINERY - 2.12% Caterpillar, Inc. 96,700 8,028,034 Graco, Inc. 75,650 3,033,565 ----------- 11,061,599 INSURANCE - 1.23% AFLAC, Inc. 52,400 1,895,832 American International Group, Inc. 55,156 3,655,740 Principal Financial Group, Inc. 25,400 839,978 ----------- 6,391,550 INTERNET CONTENT - 1.03% CNET Networks, Inc. * (a) 154,612 1,054,454 Yahoo!, Inc. * 94,900 4,286,633 ----------- 5,341,087
The accompanying notes are an integral part of the financial statements. 138 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- INTERNET RETAIL - 0.75% Amazon.com, Inc. * 35,900 $ 1,889,776 eBay, Inc. * 30,900 1,995,831 ------------ 3,885,607 INTERNET SOFTWARE - 2.94% Cisco Systems, Inc. * 543,680 13,205,987 Juniper Networks, Inc. * (a) 111,400 2,080,952 ------------ 15,286,939 LEISURE TIME - 2.74% Carnival Corp. 55,419 2,201,797 Pixar, Inc. * (a) 18,800 1,302,652 The Walt Disney Company * 462,257 10,784,456 ------------ 14,288,905 MANUFACTURING - 2.10% 3M Company 56,900 4,838,207 Tyco International, Ltd. * 230,100 6,097,650 ------------ 10,935,857 METAL & METAL PRODUCTS - 0.32% Precision Castparts Corp. 36,700 1,666,547 ------------ NEWSPAPERS - 0.36% Dow Jones & Company, Inc. 37,500 1,869,375 ------------ PETROLEUM SERVICES - 3.74% ChevronTexaco Corp. 52,900 4,570,031 Exxon Mobil Corp. 187,700 7,695,700 Schlumberger, Ltd. * 103,000 5,636,160 Tidewater, Inc. 52,600 1,571,688 ------------ 19,473,579 PHARMACEUTICALS - 8.70% Allergan, Inc. 42,500 3,264,425 AstraZeneca PLC, ADR (a) 53,600 2,593,168 Bristol-Myers Squibb Company * 105,400 3,014,440 Eli Lilly & Company 65,300 4,592,549 Forest Laboratories, Inc. * 55,000 3,399,000 Medicis Pharmaceutical Corp., Class A (a) 28,500 2,032,050 Merck & Company, Inc. 170,400 7,872,480 Pfizer, Inc. 309,322 10,928,346 Roche Holding AG-Genusschein * 23,470 2,366,348 Schering-Plough Corp. 154,200 2,681,538 Wyeth 59,000 2,504,550 ------------ 45,248,894 PHOTOGRAPHY - 0.28% Konica Minolta Holdings, Inc. * 107,000 1,439,184 ------------ PUBLISHING - 1.13% News Corp., Ltd., ADR (a) 41,400 1,494,540 Tribune Company 85,400 4,406,640 ------------ 5,901,180 RAILROADS & EQUIPMENT - 0.55% Union Pacific Corp. 41,300 2,869,524 ------------ RETAIL GROCERY - 0.32% Safeway, Inc. * 76,800 1,682,688 ------------ RETAIL TRADE - 3.80% Home Depot, Inc. 93,100 3,304,119 Lowe's Companies, Inc. 71,100 3,938,229 The Gap, Inc. * 185,800 4,312,418 Wal-Mart Stores, Inc. 155,100 8,228,055 ------------ 19,782,821 SANITARY SERVICES - 0.26% Waste Management, Inc. 45,200 1,337,920 ------------ SEMICONDUCTORS - 6.52% Altera Corp. * 74,700 1,695,690 Amkor Technology, Inc. * 35,600 648,276 Analog Devices, Inc. 74,900 3,419,185 Applied Materials, Inc. * 93,200 2,092,340 Intel Corp. 358,000 11,527,600 KLA-Tencor Corp. * 23,200 1,361,144 Marvell Technology Group, Ltd. * 47,100 1,786,503 Micrel, Inc. * (a) 83,800 1,305,604 Texas Instruments, Inc. 282,000 8,285,160 Tokyo Electron, Ltd. * 23,600 1,793,102 ------------ 33,914,604 SOFTWARE - 4.48% Adobe Systems, Inc. 27,400 1,076,820 Ascential Software Corp. * 51,500 1,335,395 Microsoft Corp. 631,300 17,386,002 Oracle Corp. * 264,900 3,496,680 ------------ 23,294,897 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.58% CIENA Corp. * 326,000 2,164,640 Motorola, Inc. * 201,600 2,836,512 SBC Communications, Inc. 86,500 2,255,055 UTStarcom, Inc. * (a) 25,500 945,285 ------------ 8,201,492 TELEPHONE - 1.08% Verizon Communications, Inc. * 160,200 5,619,816 ------------ TOBACCO - 0.76% Altria Group, Inc. 72,430 3,941,642 ------------ TRUCKING & FREIGHT - 0.40% Fedex Corp. 31,000 2,092,500 ------------ TOTAL COMMON STOCK (Cost: $424,700,177) $488,580,850 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 3.86% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 20,069,219 $ 20,069,219 ------------ REPURCHASE AGREEMENTS - 2.24% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.50%, to be repurchased at $11,646,324 on 01/02/2004, collateralized by $11,750,000 U.S. Treasury Notes, 2.125% due 10/31/2004 (valued at $11,882,188, including interest). $ 11,646,000 $ 11,646,000 ------------ TOTAL INVESTMENTS (LARGE CAP GROWTH TRUST) (Cost: $456,415,396) $520,296,069 ============
The accompanying notes are an integral part of the financial statements. 139 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) QUANTITATIVE EQUITY TRUST
SHARES VALUE ------ ----- COMMON STOCK - 92.81% AEROSPACE - 4.02% Lockheed Martin Corp. 84,100 $ 4,322,740 Raytheon Company * 61,800 1,856,472 United Technologies Corp. 57,700 5,468,229 ----------- 11,647,441 AUTOMOBILES - 1.15% General Motors Corp. (a) 62,700 3,348,180 ----------- BANKING - 7.34% Bank of America Corp. 86,900 6,989,367 Bank One Corp. 93,600 4,267,224 Doral Financial Corp. 77,000 2,485,560 National City Corp. 67,500 2,290,950 Wells Fargo & Company 88,800 5,229,432 ----------- 21,262,533 BIOTECHNOLOGY - 1.73% Amgen, Inc. * 81,200 5,018,160 ----------- BROADCASTING - 1.03% Fox Entertainment Group, Inc., Class A * (a) 102,300 2,982,045 ----------- BUILDING MATERIALS & CONSTRUCTION - 0.82% RPM International, Inc. 144,000 2,370,240 ----------- BUSINESS SERVICES - 1.77% Cadence Design Systems, Inc. * 75,100 1,350,298 Cendant Corp. * 68,700 1,529,949 First Data Corp. * (a) 54,800 2,251,732 ----------- 5,131,979 CELLULAR COMMUNICATIONS - 0.92% Vodafone Group PLC, ADR 106,900 2,676,776 ----------- COMPUTERS & BUSINESS EQUIPMENT - 1.50% Hewlett-Packard Company * 189,600 4,355,112 ----------- COSMETICS & TOILETRIES - 3.33% Avon Products, Inc. 49,000 3,307,010 The Procter & Gamble Company 63,600 6,352,368 ----------- 9,659,378 CRUDE PETROLEUM & NATURAL GAS - 1.17% Anadarko Petroleum Corp. (a) 66,600 3,397,266 ----------- ELECTRICAL EQUIPMENT - 1.52% General Electric Company 142,400 4,411,552 ----------- ELECTRIC UTILITIES - 2.60% Dominion Resources, Inc. 59,300 3,785,119 Entergy Corp. 65,700 3,753,441 ----------- 7,538,560 FINANCIAL SERVICES - 6.83% American Express Company, 56,500 2,724,995 Bear Stearns Companies, Inc. (a) 34,400 2,750,280 Citigroup, Inc. 175,900 8,538,186 Federal National Mortgage Association 76,900 5,772,114 ----------- 19,785,575 FOOD & BEVERAGES - 2.44% General Mills, Inc. * 75,500 3,420,150 Kellogg Company 78,700 2,996,896 PepsiCo, Inc. 13,900 648,018 ----------- 7,065,064 HEALTHCARE PRODUCTS - 2.80% Guidant Corp. 49,200 2,961,840 Johnson & Johnson 37,000 1,911,420 Stryker Corp. 38,200 3,247,382 ----------- 8,120,642 HEALTHCARE SERVICES - 1.26% McKesson Corp. * 113,300 3,643,728 ----------- HOMEBUILDERS - 0.49% KB HOME (a) 19,600 1,421,392 ----------- HOTELS & RESTAURANTS - 1.89% Marriott International, Inc., Class A 74,200 3,428,040 McDonald's Corp. 82,500 2,048,475 ----------- 5,476,515 HOUSEHOLD PRODUCTS - 0.65% Newell Rubbermaid, Inc. 83,300 1,896,741 ----------- INSURANCE - 6.61% Aetna, Inc. 40,700 2,750,506 AFLAC, Inc. 75,100 2,717,118 CIGNA Corp. * 61,600 3,542,000 RenaissanceRe Holdings, Ltd. 99,200 4,865,760 W.R. Berkley Corp. 151,200 5,284,440 ----------- 19,159,824 INTERNATIONAL OIL - 1.69% ConocoPhillips 74,800 4,904,636 ----------- INTERNET SOFTWARE - 2.77% Cisco Systems, Inc. * 263,300 6,395,557 Symantec Corp. * 47,300 1,638,945 ----------- 8,034,502 LEISURE TIME - 1.19% The Walt Disney Company * 147,700 3,445,841 ----------- MANUFACTURING - 1.70% Tyco International, Ltd. * 186,200 4,934,300 ----------- PAPER - 1.12% Georgia-Pacific Corp. 105,500 3,235,685 ----------- PETROLEUM SERVICES - 4.12% Baker Hughes, Inc. 92,600 2,978,016 Exxon Mobil Corp. 53,400 2,189,400 Halliburton Company 114,500 2,977,000 Valero Energy Corp. 81,900 3,795,246 ----------- 11,939,662 PHARMACEUTICALS - 6.42% Abbott Laboratories 96,000 4,473,600 Pfizer, Inc. 244,200 8,627,586 Wyeth 129,900 5,514,255 ----------- 18,615,441
The accompanying notes are an integral part of the financial statements. 140 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- PUBLISHING - 1.20% McGraw-Hill Companies, Inc. 49,700 $ 3,475,024 ------------ RETAIL TRADE - 7.46% Bed Bath & Beyond, Inc. * 145,700 6,316,095 Costco Wholesale Corp. * 101,000 3,755,180 CVS Corp. 61,400 2,217,768 Home Depot, Inc. 126,600 4,493,034 The Gap, Inc. * (a) 116,900 2,713,249 Wal-Mart Stores, Inc. 40,000 2,122,000 ------------ 21,617,326 SEMICONDUCTORS - 5.45% Altera Corp. * 104,400 2,369,880 Applied Micro Circuits Corp. * 369,000 2,206,620 Intel Corp. 68,100 2,192,820 Linear Technology Corp. 96,600 4,063,962 Microchip Technology, Inc. 40,400 1,347,744 QLogic Corp. * 37,400 1,929,840 Xilinx, Inc. * 43,400 1,681,316 ------------ 15,792,182 SOFTWARE - 4.24% BEA Systems, Inc. * (a) 117,400 1,444,020 Microsoft Corp. 393,400 10,834,236 ------------ 12,278,256 TELEPHONE - 0.91% ALLTEL Corp. 56,500 2,631,770 ------------ TOBACCO - 1.54% Altria Group, Inc. 82,300 4,478,766 ------------ TRUCKING & FREIGHT - 1.13% CNF, Inc. 96,500 3,271,350 ------------ TOTAL COMMON STOCK (Cost: $243,798,394) $269,023,444 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 5.99% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 14,673,806 $ 14,673,806 Federal National Mortgage Association Discount Notes, 1.06% due 02/18/2004 2,700,000 2,696,184 ------------ $ 17,369,990 REPURCHASE AGREEMENTS - 1.20% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at $3,465,135 on 01/02/2004, collateralized by $2,475,000 U.S. Treasury Bonds, 8.50% due 02/15/2020 (valued at $3,534,609, including interest) $ 3,465,000 $ 3,465,000 ------------ TOTAL INVESTMENTS (QUANTITATIVE EQUITY TRUST) (Cost: $264,633,384) $289,858,434 ============
BLUE CHIP GROWTH TRUST
SHARES VALUE ------ ----- COMMON STOCK - 92.96% ADVERTISING - 0.59% Omnicom Group, Inc. * 108,300 $ 9,457,839 ----------- AEROSPACE - 0.63% General Dynamics Corp. 56,700 5,125,113 Honeywell International, Inc. 20,900 698,687 Lockheed Martin Corp. 83,100 4,271,340 ----------- 10,095,140 ALUMINUM - 0.42% Alcoa, Inc. 177,000 6,726,000 ----------- BANKING - 3.92% Bank of America Corp. 189,500 15,241,485 Bank of New York Company, Inc. * 208,900 6,918,768 Northern Trust Corp. 233,400 10,834,428 US Bancorp 498,400 14,842,352 Wells Fargo & Company 249,400 14,687,166 ----------- 62,524,199 BIOTECHNOLOGY - 1.77% Amgen, Inc. * 325,400 20,109,720 Genentech, Inc. * 64,400 6,025,908 MedImmune, Inc. * 83,300 2,115,820 ----------- 28,251,448 BROADCASTING - 3.72% Clear Channel Communications, Inc. 458,100 21,452,823 Univision Communications, Inc., Class A * (a) 323,200 12,827,808 Viacom, Inc., Class B 565,884 25,113,932 ----------- 59,394,563 BUSINESS SERVICES - 4.57% Accenture, Ltd., Class A * 306,300 8,061,816 Affiliated Computer Services, Inc., Class A *, 207,700 11,311,342 ARAMARK Corp., Class B 10,400 285,168 Cendant Corp. * 317,800 7,077,406 Charles Schwab Corp. 543,400 6,433,856 ChoicePoint, Inc. * 72,400 2,757,716 First Data Corp. * (a) 520,100 21,370,909 Fiserv, Inc. * 226,300 8,941,113 Paychex, Inc. 83,500 3,106,200 SunGuard Data Systems, Inc. * 126,100 3,494,231 ----------- 72,839,757 CABLE AND TELEVISION - 2.56% Comcast Corp.-Special Class A * 537,900 16,825,512 EchoStar Communications Corp., Class A * 339,400 11,539,600 Time Warner, Inc. * 696,200 12,524,638 ----------- 40,889,750 CELLULAR COMMUNICATIONS - 3.26% Nextel Communications, Inc., Class A * 768,700 21,569,722 Vodafone Group PLC, ADR (a) 1,214,750 30,417,340 ----------- 51,987,062 COLLEGES & UNIVERSITIES - 1.06% Apollo Group, Inc., Class A * 248,100 16,870,800 -----------
The accompanying notes are an integral part of the financial statements. 141 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- COMPUTERS & BUSINESS EQUIPMENT - 1.93% Dell, Inc. * 603,600 $ 20,498,256 EMC Corp. * 20,900 270,028 International Business Machines Corp. 20,800 1,927,744 Lexmark International, Inc. * 95,800 7,533,712 Research In Motion, Ltd.* 8,400 561,372 ------------ 30,791,112 COSMETICS & TOILETRIES - 0.71% Estee Lauder Companies, Inc., Class A 84,000 3,297,840 The Gillette Company * 103,900 3,816,247 The Procter & Gamble Company 41,600 4,155,008 ------------ 11,269,095 ELECTRICAL EQUIPMENT - 1.64% General Electric Company 845,100 26,181,198 ------------ ELECTRONICS - 0.09% Synopsys, Inc. * 41,500 1,401,040 ------------ FINANCIAL SERVICES - 13.03% American Express Company 226,600 10,928,918 Citigroup, Inc. 1,221,296 59,281,708 Federal Home Loan Mortgage Corp. 62,300 3,633,336 Federal National Mortgage Association 270,400 20,296,224 Franklin Resources, Inc. 179,000 9,318,740 Legg Mason, Inc. (a) 90,500 6,984,790 Mellon Financial Corp. 479,300 15,390,323 Merrill Lynch & Company, Inc. 323,100 18,949,815 Morgan Stanley 264,800 15,323,976 SLM Corp. 320,000 12,057,600 State Street Corp. (b) 417,100 21,722,568 The Goldman Sachs Group, Inc. 140,500 13,871,565 ------------ 207,759,563 FOOD & BEVERAGES - 2.19% General Mills, Inc. * 20,800 942,240 PepsiCo, Inc. 239,270 11,154,768 Starbucks Corp. * 211,100 6,978,966 The Coca-Cola Company 311,400 15,803,550 ------------ 34,879,524 HEALTHCARE PRODUCTS - 2.71% Boston Scientific Corp. * 229,600 8,440,096 Guidant Corp. 27,000 1,625,400 Johnson & Johnson 312,100 16,123,086 Medtronic, Inc. 258,300 12,555,963 Stryker Corp. 51,700 4,395,017 ------------ 43,139,562 HEALTHCARE SERVICES - 4.30% Medco Health Solutions, Inc. * 83,200 2,827,968 UnitedHealth Group, Inc. 804,100 46,782,538 Wellpoint Health Networks, Inc., Class A * 195,600 18,971,244 ------------ 68,581,750 HOTELS & RESTAURANTS - 0.53% McDonald's Corp. 226,600 5,626,478 MGM Mirage * 73,000 2,745,530 ------------ 8,372,008 INDUSTRIAL MACHINERY - 0.35% Deere & Company * 86,700 5,639,835 ------------ INSURANCE - 4.35% Ambac Financial Group, Inc. 10,400 721,656 American International Group, Inc. 488,627 32,386,198 Anthem, Inc. * (a) 21,200 1,590,000 Hartford Financial Services Group, Inc. 201,500 11,894,545 Marsh & McLennan Companies, Inc. 270,400 12,949,456 Travelers Property Casualty Corp., Class A 587,857 9,864,240 ------------ 69,406,095 INTERNET CONTENT - 0.64% Yahoo!, Inc. * 227,100 10,258,107 ------------ INTERNET RETAIL - 1.24% eBay, Inc. * 133,000 8,590,470 InterActiveCorp * 328,100 11,132,433 ------------ 19,722,903 INTERNET SOFTWARE - 2.48% Cisco Systems, Inc. * 1,383,600 33,607,644 Symantec Corp. * (a) 170,900 5,921,685 ------------ 39,529,329 LEISURE TIME - 2.01% Carnival Corp. 309,300 12,288,489 International Game Technology 419,200 14,965,440 The Walt Disney Company * 208,300 4,859,639 ------------ 32,113,568 MANUFACTURING - 3.42% 3M Company 46,000 3,911,380 Danaher Corp. * (a) 287,800 26,405,650 Illinois Tool Works, Inc. 23,300 1,955,103 Tyco International, Ltd. * 841,296 22,294,344 ------------ 54,566,477 MINING - 0.13% BHP Billiton, Ltd. * 225,800 2,072,497 ------------ NEWSPAPERS - 0.71% E.W. Scripps Company, Class A 112,600 10,600,164 Washington Post Company, Class B 833 659,236 ------------ 11,259,400 PETROLEUM SERVICES - 2.63% Baker Hughes, Inc. 380,200 12,227,232 BJ Services Company * 164,000 5,887,600 Schlumberger, Ltd. * 271,200 14,840,064 Smith International, Inc. * 214,600 8,910,192 ------------ 41,865,088 PHARMACEUTICALS - 7.17% Abbott Laboratories 240,200 11,193,320 Cardinal Health, Inc. 62,300 3,810,268 Eli Lilly & Company 126,900 8,924,877 Forest Laboratories, Inc. * 245,700 15,184,260 Gilead Sciences, Inc. * 164,500 9,564,030 Pfizer, Inc. 1,563,391 55,234,604 Teva Pharmaceutical Industries, Ltd., ADR 27,000 1,531,170 Wyeth 207,700 8,816,865 ------------ 114,259,394 RETAIL GROCERY - 0.58% Sysco Corp. 246,800 9,188,364 ------------
The accompanying notes are an integral part of the financial statements. 142 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ----------- -------------- RETAIL TRADE - 4.47% Best Buy Company, Inc. 182,900 $ 9,554,696 Family Dollar Stores, Inc. 10,400 373,152 Home Depot, Inc. 646,200 22,933,638 Target Corp. 459,400 17,640,960 The TJX Companies, Inc. 20,800 458,640 Wal-Mart Stores, Inc. 339,100 17,989,255 Walgreen Company 62,400 2,270,112 -------------- 71,220,453 SANITARY SERVICES - 0.13% Waste Management, Inc. 71,600 2,119,360 -------------- SEMICONDUCTORS - 5.49% Analog Devices, Inc. 325,800 14,872,770 Applied Materials, Inc. * 457,900 10,279,855 ASML Holding NV * (a) 143,200 2,871,160 Intel Corp. 508,800 16,383,360 Maxim Integrated Products, Inc. 379,100 18,879,180 Microchip Technology, Inc. 127,800 4,263,408 QLogic Corp. * (a) 83,500 4,308,600 Texas Instruments, Inc. 308,000 9,049,040 Xilinx, Inc. * 170,700 6,612,918 -------------- 87,520,291 SOFTWARE - 4.64% Adobe Systems, Inc. (a) 176,800 6,948,240 Intuit, Inc. * 271,000 14,338,610 Microsoft Corp. 1,656,900 45,631,026 Oracle Corp. * 20,800 274,560 Siebel Systems, Inc. * 287,200 3,983,464 VERITAS Software Corp. * 77,025 2,862,249 -------------- 74,038,149 STEEL - 0.12% Nucor Corp. (a) 33,300 1,864,800 -------------- TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.64% Nokia Oyj, ADR 335,200 5,698,400 NTL, Inc. * 10,400 725,400 QUALCOMM, Inc. 70,600 3,807,458 -------------- 10,231,258 TOBACCO - 0.55% Altria Group, Inc. 159,900 8,701,758 -------------- TRANSPORTATION - 0.96% Harley-Davidson, Inc. 321,500 15,280,894 -------------- TRUCKING & FREIGHT - 0.62% United Parcel Service, Inc., Class B 133,100 9,922,605 -------------- TOTAL COMMON STOCK (Cost: $1,324,933,359) $1,482,192,035 --------------
PRINCIPAL AMOUNT VALUE ------------ -------------- SHORT TERM INVESTMENTS - 7.00% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $100,351,928 $ 100,351,928 T. Rowe Price Reserve Investment Fund (c) 11,308,760 11,308,760 -------------- $ 111,660,688 REPURCHASE AGREEMENTS - 0.04% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $679,015 on 01/02/2004, collateralized by $475,000 U.S. Treasury Bonds, 9.250% due 02/15/2016 (valued at $697,656, including interest). $ 679,000 $ 679,000 -------------- TOTAL INVESTMENTS (BLUE CHIP GROWTH TRUST) (Cost: $1,437,273,047) $1,594,531,723 ==============
U.S. LARGE CAP TRUST
SHARES VALUE ---------- -------------- COMMON STOCK - 86.18% ADVERTISING - 0.49% Monster Worldwide, Inc. * (a) 78,900 $ 1,732,644 The Interpublic Group of Companies, Inc. 85,000 1,326,000 -------------- 3,058,644 AEROSPACE - 1.75% Northrop Grumman Corp. 32,591 3,115,700 United Technologies Corp. 82,300 7,799,571 -------------- 10,915,271 AUTO SERVICES - 0.37% AutoNation, Inc. * 125,000 2,296,250 -------------- BANKING - 2.41% Bank One Corp. 191,600 8,735,044 FleetBoston Financial Corp. * 25,900 1,130,535 Golden West Financial Corp. (a) 7,900 815,201 Wells Fargo & Company 74,100 4,363,749 -------------- 15,044,529 BIOTECHNOLOGY - 2.25% Amgen, Inc. * 117,400 7,255,320 Applera Corp.-Applied Biosystems 276,800 5,732,528 Group * Biogen Idec, Inc. * 28,700 1,055,586 -------------- 14,043,434 BROADCASTING - 0.74% Entercom Communications Corp. * 7,700 407,792 Hughes Electronics Corp. * 120,436 1,993,216 Radio One, Inc., Class D * (a) 20,700 399,510 Viacom, Inc., Class B 41,500 1,841,770 -------------- 4,642,288 BUILDING MATERIALS & CONSTRUCTION - 0.99% American Standard Companies, Inc. * 61,300 6,172,910 --------------
The accompanying notes are an integral part of the financial statements. 143 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ----------- --------------- BUSINESS SERVICES - 2.60% Affiliated Computer Services, Inc., Class A *, 39,000 $ 2,123,940 Automatic Data Processing, Inc. 145,400 5,759,294 Cadence Design Systems, Inc. * 107,300 1,929,254 Fluor Corp. * (a) 128,800 5,105,632 Robert Half International, Inc. * 57,400 1,339,716 --------------- 16,257,836 CABLE AND TELEVISION - 2.61% Cablevision Systems New York Group, Class A * (a) 175,947 4,115,400 Comcast Corp., Class A * 35,000 1,150,450 Cox Communications, Inc., Class A * 122,500 4,220,125 Time Warner, Inc. * 378,200 6,803,818 --------------- 16,289,793 CELLULAR COMMUNICATIONS - 0.88% Sprint Corp. (PCS Group) * 974,900 5,478,938 --------------- CHEMICALS - 1.45% Air Products & Chemicals, Inc., 106,100 5,605,263 E.I. Du Pont De Nemours & Company 75,000 3,441,750 --------------- 9,047,013 COMPUTERS & BUSINESS EQUIPMENT - 1.38% International Business Machines Corp. 35,000 3,243,800 Lexmark International, Inc. * 21,900 1,722,216 Seagate Technology, Inc. 58,200 1,099,980 Sun Microsystems, Inc. * 574,900 2,581,301 --------------- 8,647,297 COSMETICS & TOILETRIES - 0.91% Estee Lauder Companies, Inc., Class A 63,000 2,473,380 Kimberly-Clark Corp. 14,000 827,260 The Procter & Gamble Company 23,900 2,387,132 --------------- 5,687,772 CRUDE PETROLEUM & NATURAL GAS - 0.11% Devon Energy Corp. 12,500 715,750 --------------- DOMESTIC OIL - 1.25% Unocal Corp. * 212,100 7,811,643 --------------- ELECTRICAL EQUIPMENT - 1.99% Emerson Electric Company 66,300 4,292,925 General Electric Company 262,700 8,138,446 --------------- 12,431,371 ELECTRIC UTILITIES - 1.77% Duke Energy Corp. * 172,900 3,535,805 Pinnacle West Capital Corp. 27,100 1,084,542 The AES Corp. * 679,300 6,412,592 --------------- 11,032,939 ELECTRONICS - 1.19% Agilent Technologies, Inc. * 202,804 5,929,989 Avnet, Inc. * 69,800 1,511,868 --------------- 7,441,857 FINANCIAL SERVICES - 7.45% Americredit Corp. * (a) 92,300 1,470,339 Federal Home Loan Mortgage Corp. 58,900 3,435,048 Federal National Mortgage Association 78,400 5,884,704 IndyMac Bancorp, Inc. 102,000 3,038,580 J.P. Morgan Chase & Company * 78,900 2,897,997 SLM Corp. 337,000 12,698,160 State Street Corp. (b) 72,900 3,796,632 The Goldman Sachs Group, Inc. 11,100 1,095,903 Washington Mutual, Inc. 304,800 12,228,576 --------------- 46,545,939 FOOD & BEVERAGES - 3.38% Anheuser-Busch Companies, Inc. 82,200 4,330,296 Campbell Soup Company * 166,100 4,451,480 H.J. Heinz Company 38,500 1,402,555 Kraft Foods, Inc., Class A (a) 66,100 2,129,742 PepsiCo, Inc. 72,300 3,370,626 The Pepsi Bottling Group, Inc. * 64,000 1,547,520 Unilever NV 60,000 3,894,000 --------------- 21,126,219 GAS & PIPELINE UTILITIES - 1.26% Kinder Morgan Management LLC * 108,489 4,660,687 NiSource, Inc. 87,100 1,910,974 Williams Companies, Inc. 133,500 1,310,970 --------------- 7,882,631 HEALTHCARE PRODUCTS - 0.93% Becton Dickinson & Company 47,800 1,966,492 Guidant Corp. 42,949 2,585,530 Medtronic, Inc. 26,400 1,283,304 --------------- 5,835,326 HEALTHCARE SERVICES - 1.00% Lincare Holdings, Inc. * 168,200 5,051,046 Pacificare Health Systems, Inc. * (a) 18,100 1,223,560 --------------- 6,274,606 HOLDINGS COMPANIES/CONGLOMERATES - 1.27% Berkshire Hathaway, Inc., Class A * 94 7,919,500 --------------- HOTELS & RESTAURANTS - 0.17% Starwood Hotels & Resorts Worldwide, Inc. * 30,400 1,093,488 --------------- INDUSTRIAL MACHINERY - 0.57% Ingersoll-Rand Company, Class A 52,400 3,556,912 --------------- INSURANCE - 2.45% American International Group, Inc. 35,987 2,385,218 Chubb Corp. 34,700 2,363,070 Hartford Financial Services Group, Inc. 42,900 2,532,387 The PMI Group, Inc. (a) 96,700 3,600,141 XL Capital, Ltd., Class A 56,800 4,404,840 --------------- 15,285,656 INTERNATIONAL OIL - 1.59% Royal Dutch Petroleum Company 122,300 6,407,297 Weatherford International, Ltd. * 97,500 3,510,000 --------------- 9,917,297 INTERNET CONTENT - 0.27% The Thomson Corp. 46,100 1,671,125 --------------- INTERNET RETAIL - 1.59% eBay, Inc. * 78,000 5,038,020 InterActiveCorp * (a) 145,200 4,926,636 --------------- 9,964,656 INTERNET SOFTWARE - 2.24% Checkfree Corp. * (a) 101,400 2,803,710 Cisco Systems, Inc. * 363,500 8,829,415 VeriSign, Inc. * 143,600 2,340,680 --------------- 13,973,805
The accompanying notes are an integral part of the financial statements. 144 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARE VALUE ----- ----- LEISURE TIME - 0.99% Carnival Corp. 77,400 $ 3,075,102 The Walt Disney Company * 84,900 1,980,717 Vivendi Universal, ADR (a) 46,900 1,138,732 ------------ 6,194,551 MANUFACTURING - 0.67% Illinois Tool Works, Inc. 27,000 2,265,570 Siemens AG, ADR * (a) 24,000 1,918,560 ------------ 4,184,130 MEDICAL-HOSPITALS - 0.26% Triad Hospitals, Inc. * 48,000 1,596,960 ------------ MINING - 0.24% Newmont Mining Corp. 31,000 1,506,910 ------------ NEWSPAPERS - 0.22% Knight-Ridder, Inc. 17,600 1,361,712 ------------ PAPER - 0.25% Boise Cascade Corp. * (a) 11,500 377,890 International Paper Company 27,000 1,163,970 ------------ 1,541,860 PETROLEUM SERVICES - 4.06% Baker Hughes, Inc. 86,900 2,794,704 BJ Services Company * 67,300 2,416,070 ChevronTexaco Corp. 20,100 1,736,439 Exxon Mobil Corp. 211,900 8,687,900 Schlumberger, Ltd. * 147,100 8,049,312 Transocean, Inc. * (a) 70,900 1,702,309 ------------ 25,386,734 PHARMACEUTICALS - 11.96% Allergan, Inc. 183,900 14,125,359 AstraZeneca PLC, ADR (a) 557,600 26,976,688 Eli Lilly & Company 81,200 5,710,796 Forest Laboratories, Inc. * 333,300 20,597,940 Pfizer, Inc. 207,100 7,316,843 ------------ 74,727,626 RETAIL TRADE - 3.11% Costco Wholesale Corp. * 134,500 5,000,710 Lowe's Companies, Inc. 166,700 9,233,513 RadioShack Corp. (a) 69,500 2,132,260 Williams-Sonoma, Inc. * 88,400 3,073,668 ------------ 19,440,151 SEMICONDUCTORS - 6.90% Altera Corp. * 133,500 3,030,450 Applied Materials, Inc. * 459,600 10,318,020 Applied Micro Circuits Corp. * 197,300 1,179,854 ASML Holding NV * (a) 87,100 1,746,355 Credence Systems Corp. * 72,300 951,468 Intel Corp. 115,300 3,712,660 KLA-Tencor Corp. * 134,800 7,908,716 Lam Research Corp. * 72,000 2,325,600 Linear Technology Corp. 35,400 1,489,278 Novellus Systems, Inc. * 34,200 1,438,110 PMC-Sierra, Inc. * (a) 144,000 2,901,600 Teradyne, Inc. * 168,800 4,295,960 Xilinx, Inc. * 46,400 1,797,536 ------------ 43,095,607 SOFTWARE - 2.47% Microsoft Corp. 277,300 7,636,842 PeopleSoft, Inc. * 207,900 4,740,120 SAP AG, ADR (a) 73,100 3,038,036 ------------ 15,414,998 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.71% Polycom, Inc. * (a) 55,900 1,091,168 QUALCOMM, Inc. 177,400 9,567,182 ------------ 10,658,350 TELEPHONE - 2.23% AT&T Corp. 145,740 2,958,522 Sprint Corp. (FON Group) 554,000 9,096,680 Verizon Communications, Inc. * 53,400 1,873,272 ------------ 13,928,474 TOBACCO - 1.04% Altria Group, Inc. 119,200 6,486,864 ------------ TRAVEL SERVICES - 0.28% Sabre Holdings Corp. (a) 82,500 1,781,175 ------------ TRUCKING & FREIGHT - 0.48% Navistar International Corp. * 63,100 3,021,859 ------------ TOTAL COMMON STOCK (Cost: $445,409,947) $538,390,656 ------------ PREFERRED STOCK - 0.27% BROADCASTING - 0.06% The News Corp., Ltd., ADR 13,470 407,468 ------------ MINING - 0.21% Phelps Dodge Corp. * (a) 7,700 1,302,840 ------------ TOTAL PREFERRED STOCK (Cost: $1,115,303) $ 1,710,308 ------------
PRINCIPAL AMOUNT VALUE ------ ----- CONVERTIBLE BONDS - 0.42% INTERNET RETAIL - 0.42% Amazon.com, Inc., 4.75% due 02/01/2009 $ 2,628,000 $ 2,657,565 ----------- TOTAL CONVERTIBLE BONDS (Cost: $1,868,339) $ 2,657,565 ----------- SHORT TERM INVESTMENTS - 10.59% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $66,142,244 $66,142,244 -----------
The accompanying notes are an integral part of the financial statements. 145 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- REPURCHASE AGREEMENTS - 2.54% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40% to be repurchased at $15,849,352 on 01/02/2004, collateralized by $11,010,000 U.S. Treasury Bonds, 9.25% due 02/15/2016 (valued at $16,170,938, including interest). $15,849,000 $ 15,849,000 ------------ TOTAL INVESTMENTS (U.S. LARGE CAP TRUST) (Cost: $530,384,833) $624,749,773 ============
STRATEGIC VALUE TRUST
SHARES VALUE ------ ----- COMMON STOCK - 95.59% AEROSPACE - 1.61% Lockheed Martin Corp. 45,940 $2,361,316 ---------- ALUMINUM - 1.96% Alcoa, Inc. 75,920 2,884,960 ---------- BANKING - 1.06% FleetBoston Financial Corp. * 35,670 1,556,996 ---------- BROADCASTING - 3.63% Viacom, Inc., Class B 120,080 5,329,150 ---------- CABLE AND TELEVISION - 2.71% Comcast Corp.-Special Class A * 127,240 3,980,067 ---------- CELLULAR COMMUNICATIONS - 5.67% AT&T Wireless Services, Inc. * 683,550 5,461,564 Telephone & Data Systems, Inc. 45,790 2,864,165 ---------- 8,325,729 CHEMICALS - 1.75% Air Products & Chemicals, Inc., 27,740 1,465,504 Lyondell Chemical Company (a) 64,950 1,100,903 ---------- 2,566,407 CONTAINERS & GLASS - 2.45% Owens-Illinois, Inc. * 192,990 2,294,651 Smurfit-Stone Container Corp. 70,050 1,300,829 ---------- 3,595,480 COSMETICS & TOILETRIES - 1.94% Kimberly-Clark Corp. 48,200 2,848,138 ---------- CRUDE PETROLEUM & NATURAL GAS - 2.75% Devon Energy Corp. 40,470 2,317,312 Occidental Petroleum Corp. * 40,700 1,719,168 ---------- 4,036,480 ELECTRICAL EQUIPMENT - 1.48% General Electric Company 70,070 2,170,769 ---------- ELECTRIC UTILITIES - 2.01% FirstEnergy Corp. 15,250 536,800 TXU Corp. * 102,100 2,421,812 ---------- 2,958,612 ENERGY - 1.94% Calpine Corp. * (a) 591,510 2,845,163 ---------- FINANCIAL SERVICES - 10.78% Citigroup, Inc. 76,290 3,703,116 Federal Home Loan Mortgage Corp. 50,030 2,917,750 J.P. Morgan Chase & Company * 44,800 1,645,504 Mellon Financial Corp. 110,330 3,542,696 Merrill Lynch & Company, Inc. 51,800 3,038,070 PNC Financial Services Group 17,990 984,593 ---------- 15,831,729 GAS & PIPELINE UTILITIES - 1.28% NiSource, Inc. 85,530 1,876,528 ---------- HEALTHCARE PRODUCTS - 4.16% Baxter International, Inc. * 68,803 2,099,867 Johnson & Johnson 77,530 4,005,200 ---------- 6,105,067 HOTELS & RESTAURANTS - 0.49% Hilton Hotels Corp. 42,180 722,543 ---------- HOUSEHOLD PRODUCTS - 2.18% Newell Rubbermaid, Inc. 140,820 3,206,471 ---------- INDUSTRIAL MACHINERY - 1.21% Cooper Cameron Corp. * 38,220 1,781,052 ---------- INSURANCE - 6.31% Hartford Financial Services Group, Inc. 53,290 3,145,709 The Allstate Corp. 82,150 3,534,093 Travelers Property Casualty Corp., Class A 153,938 2,583,079 ---------- 9,262,881 INTERNET SOFTWARE - 0.87% Networks Associates, Inc. * 84,600 1,272,384 ---------- MANUFACTURING - 2.07% Tyco International, Ltd. * 114,930 3,045,645 ---------- MEDICAL-HOSPITALS - 1.12% Tenet Healthcare Corp. * 102,870 1,651,064 ---------- PAPER - 1.48% Boise Cascade Corp. * 11,250 369,675 Bowater, Inc. * 38,880 1,800,533 ---------- 2,170,208 PETROLEUM SERVICES - 8.10% BJ Services Company * 56,380 2,024,042 GlobalSantaFe Corp. 166,228 4,127,441 Noble Corp. * 107,950 3,862,451 Schlumberger, Ltd. * 34,470 1,886,199 ---------- 11,900,133 PHARMACEUTICALS - 8.54% Eli Lilly & Company 18,810 1,322,907 Merck & Company, Inc. 73,040 3,374,448 Pfizer, Inc. 109,906 3,882,979 Schering-Plough Corp. 227,629 3,958,469 ---------- 12,538,803 RETAIL GROCERY - 2.11% The Kroger Company * 167,440 3,099,314 ----------
The accompanying notes are an integral part of the financial statements. 146 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- RETAIL TRADE - 4.30% Home Depot, Inc. 60,280 $ 2,139,337 Rite Aid Corp. * 58,740 354,790 Sears, Roebuck & Company * 84,080 3,824,799 ------------ 6,318,926 SOFTWARE - 1.98% Microsoft Corp. 105,410 2,902,991 ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.00% Winstar Communications, Inc. * 2,170 2 ------------ TELEPHONE - 7.65% AT&T Corp. 205,490 4,171,447 Verizon Communications, Inc. * 201,630 7,073,181 ------------ 11,244,628 TOTAL COMMON STOCK (Cost: $123,004,878) $140,389,636 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 4.41% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $3,948,925 $ 3,948,925 Federal Home Loan Bank Discount Note, 0.75% due 01/02/2004 2,532,000 2,531,947 ------------ $ 6,480,872 TOTAL INVESTMENTS (STRATEGIC VALUE TRUST) (Cost: $129,485,750) $146,870,508 ============
LARGE CAP VALUE TRUST
SHARES VALUE ------ ----- COMMON STOCK - 76.14% ADVERTISING - 0.20% Getty Images, Inc. * 700 $ 35,091 --------- AEROSPACE - 0.84% Textron, Inc. * 2,625 149,782 --------- AGRICULTURE - 0.92% Archer-Daniels-Midland Company 10,850 165,137 --------- AUTO PARTS - 1.22% Autoliv, Inc. (a) 1,850 69,653 Lear Corp. 2,425 148,725 --------- 218,378 AUTO SERVICES - 0.84% AutoNation, Inc. * (a) 8,150 149,716 --------- AUTOMOBILES - 0.31% Ford Motor Company * (a) 3,500 56,000 --------- BANKING - 5.23% Bank of America Corp. 450 36,194 City National Corp. 1,650 102,498 Golden West Financial Corp. 550 56,755 Independence Community Bank Corp. (a) 3,900 140,283 New York Community Bancorp, Inc. (a) 4,050 154,102 Popular, Inc. 3,050 137,067 Southtrust Corp. 4,950 162,013 Wachovia Corp. 3,125 145,594 --------- 934,506 BIOTECHNOLOGY - 0.82% Invitrogen Corp. * 2,100 147,000 --------- BUSINESS SERVICES - 1.66% Cendant Corp. * 8,750 194,862 Computer Sciences Corp. * 2,300 101,729 --------- 296,591 CELLULAR COMMUNICATIONS - 0.75% AT&T Wireless Services, Inc. * 16,800 134,232 --------- COMPUTERS & BUSINESS EQUIPMENT - 2.45% GTECH Holdings Corp. 2,650 131,149 Ingram Micro, Inc., Class A * (a) 5,050 80,295 Storage Technology Corp. * 2,775 71,456 Xerox Corp. * (a) 11,275 155,595 --------- 438,495 CRUDE PETROLEUM & NATURAL GAS - 0.52% Sunoco, Inc. (a) 1,825 93,349 --------- DOMESTIC OIL - 0.88% Marathon Oil Corp. 4,775 158,005 --------- ELECTRIC UTILITIES - 2.72% Alliant Corp. (a) 5,900 146,910 Edison International (a) 7,375 161,733 Northeast Utilities 7,175 144,720 WPS Resources Corp. 700 32,361 --------- 485,724 ELECTRONICS - 1.90% Arrow Electronics, Inc. * (a) 5,925 137,105 Avnet, Inc. * 6,750 146,205 Sanmina-SCI Corp. * 4,525 57,060 --------- 340,370 FINANCIAL SERVICES - 11.95% Bear Stearns Companies, Inc. 1,000 79,950 Capital One Financial Corp. (a) 2,500 153,225 Citigroup, Inc. 16,550 803,337 Countrywide Financial Corp. 2,250 170,662 E*TRADE Financial Corp. * (a) 6,850 86,653 J.P. Morgan Chase & Company * 9,300 341,589 Lehman Brothers Holdings, Inc. 2,400 185,328 MBIA, Inc. 2,700 159,921 MBNA Corp. 6,275 155,934 --------- 2,136,599 FOOD & BEVERAGES - 1.49% Constellation Brands, Inc., Class A * (a) 3,925 129,250 Tyson Foods, Inc., Class A * 10,425 138,027 --------- 267,277 GAS & PIPELINE UTILITIES - 2.29% Dynegy, Inc., Class A (a) 34,450 147,446 UGI Corp. 3,750 127,125 Williams Companies, Inc. 13,800 135,516 --------- 410,087 HEALTHCARE PRODUCTS - 0.84% Bausch & Lomb, Inc. * 2,900 150,510 --------- HEALTHCARE SERVICES - 2.44% Humana, Inc. * (a) 6,825 155,951 Omnicare, Inc. (a) 3,375 136,316 Pacificare Health Systems, Inc. * (a) 2,125 143,650 --------- 435,917
The accompanying notes are an integral part of the financial statements. 147 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- HOMEBUILDERS - 5.44% Centex Corp. * (a) 1,275 $ 137,254 D.R. Horton, Inc. (a) 3,300 142,758 KB HOME (a) 1,925 139,601 Lennar Corp., Class A (a) 1,450 139,200 M.D.C. Holdings, Inc. (a) 1,975 127,387 Pulte Homes, Inc. * 1,500 140,430 Ryland Group, Inc. 1,650 146,256 ----------- 972,886 HOTELS & RESTAURANTS - 0.15% McDonald's Corp. 1,100 27,313 ----------- HOUSEHOLD PRODUCTS - 0.89% Fortune Brands, Inc. 2,225 159,065 ----------- INDUSTRIAL MACHINERY - 0.75% Cummins, Inc. (a) 2,750 134,585 ----------- INDUSTRIALS - 0.87% Rockwell Automation, Inc 4,375 155,750 ----------- INSURANCE - 2.68% Anthem, Inc. * (a) 1,675 125,625 Chubb Corp. 375 25,537 Hartford Financial Services Group, Inc. 2,800 165,284 Lincoln National Corp. 3,675 148,360 W.R. Berkley Corp. 437 15,273 ----------- 480,079 INTERNATIONAL OIL - 0.99% ConocoPhillips 2,700 177,039 ----------- INTERNET SOFTWARE - 1.36% Checkfree Corp. * (a) 4,675 129,264 Juniper Networks, Inc. * (a) 6,050 113,014 ----------- 242,278 LEISURE TIME - 0.56% Blockbuster, Inc., Class A (a) 5,525 99,174 ----------- LIFE SCIENCES - 0.69% PerkinElmer, Inc. * (a) 7,275 124,184 ----------- MEDICAL-HOSPITALS - 0.73% Davita, Inc. * 3,325 129,675 ----------- PAPER - 0.88% Georgia-Pacific Corp. 5,125 157,184 ----------- PETROLEUM SERVICES - 2.46% Exxon Mobil Corp. 10,725 439,725 ----------- RETAIL GROCERY - 0.16% SUPERVALU, Inc. 975 27,875 ----------- RETAIL TRADE - 7.13% Barnes & Noble, Inc. * (a) 4,300 141,255 Claire's Stores, Inc. 2,200 41,448 CVS Corp. 4,650 167,958 Federated Department Stores, Inc. (a) 3,225 151,994 Foot Locker, Inc. (a) 6,675 156,529 May Department Stores Company 5,325 154,798 Nordstrom, Inc. (a) 4,125 141,488 Rite Aid Corp. * 21,775 131,521 Saks, Inc. * 1,450 21,808 Sears, Roebuck & Company * 3,650 166,038 ----------- 1,274,837 SEMICONDUCTORS - 3.44% Amkor Technology, Inc. * (a) 6,275 114,268 Cypress Semiconductor Corp. * (a) 6,850 146,316 Emulex Corp. * (a) 4,500 120,060 Fairchild Semiconductor International, Inc. * 4,450 111,116 National Semiconductor Corp. * (a) 3,125 123,156 ----------- 614,916 SOFTWARE - 0.70% VERITAS Software Corp. * 3,375 125,415 ----------- TELECOMMUNICATIONS EQUIPMENT & SERVICES - 3.35% American Tower Corp., Class A * (a) 13,125 142,013 Corning, Inc. * (a) 14,375 149,931 Crown Castle International Corp. * (a) 1,975 21,784 Motorola, Inc. * 13,625 191,704 Scientific-Atlanta, Inc. 3,400 92,820 ----------- 598,252 TELEPHONE - 0.98% Sprint Corp. (FON Group) 10,650 174,873 ----------- TOBACCO - 0.15% Altria Group, Inc. 500 27,210 ----------- TOYS, AMUSEMENTS & SPORTING GOODS - 0.75% Hasbro, Inc. * (a) 6,325 134,596 ----------- TRUCKING & FREIGHT - 0.76% Hunt (JB) Transport Services, Inc. * (a) 5,050 136,401 ----------- TOTAL COMMON STOCK (Cost: $12,322,780) $13,616,078 -----------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 17.52% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $3,133,921 $ 3,133,921 ----------- REPURCHASE AGREEMENTS - 6.34% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $1,134,025 on 01/02/2004, collateralized by $880,000 U.S. Treasury Bonds, 7.625% due 11/15/2022 (valued at $1,160,500, including interest). $1,134,000 $ 1,134,000 ----------- TOTAL INVESTMENTS (LARGE CAP VALUE TRUST) (Cost: $16,590,701) $17,883,999 ===========
UTILITIES TRUST
SHARES VALUE ------ ----- COMMON STOCK - 82.20% ADVERTISING - 0.93% Lamar Advertising Company * 13,800 $ 515,016 --------- BROADCASTING - 3.65% Clear Channel Communications, Inc. 7,300 341,859 Cox Radio, Inc., Class A * 10,500 264,915 Fox Entertainment Group, Inc., Class A * 12,500 364,375 Grupo Televisa SA, ADR 6,200 247,132 TV Azteca SA de CV, ADR (a) 36,300 330,330 Viacom, Inc., Class B 10,730 476,197 2,024,808 ---------
The accompanying notes are an integral part of the financial statements. 148 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- CABLE AND TELEVISION - 6.48% Cablevision Systems New York Group, Class A * (a) 14,100 $ 329,799 Comcast Corp., Class A * 2,300 75,601 Comcast Corp., Special Class A * 37,600 1,176,128 Cox Communications, Inc., Class A * 7,800 268,710 EchoStar Communications Corp., Class A * 31,060 1,056,040 Time Warner, Inc. * 37,910 682,001 ----------- 3,588,279 CELLULAR COMMUNICATIONS - 8.07% America Movil S.A. de C.V., ADR, Series L 35,800 978,772 AT&T Wireless Services, Inc. * 84,560 675,634 Cosmote Mobile Telecom * 24,600 333,504 MobileOne, Ltd. * 476,000 420,421 Nii Holdings, Inc., Class B * (a) 2,400 179,112 Sprint Corp. (PCS Group) * 143,700 807,594 Vodafone Group PLC * 435,470 1,076,611 ----------- 4,471,648 ELECTRIC UTILITIES - 24.94% Cinergy Corp. 9,900 384,219 Constellation Energy Group, Inc. 21,201 830,231 Dominion Resources, Inc. 14,210 907,024 DTE Energy Company * 1,300 51,220 E.ON AG * 6,900 449,810 Empresa Nacional De Electricidad 16,900 197,730 Endesa SA * 36,300 697,477 Enel SPA * 47,400 321,900 Enersis SA, ADR 3,400 25,024 Entergy Corp. 14,190 810,675 Exelon Corp. 33,400 2,216,424 FirstEnergy Corp. 30,970 1,090,144 FPL Group, Inc. 3,400 222,428 National Grid Transco PLC * 94,829 677,522 PG&E Corp. * 24,730 686,752 PPL Corp. 27,890 1,220,188 Public Service Enterprise Group, Inc. 7,400 324,120 Red Electrica De Espana * 18,000 294,828 Reliant Resources, Inc. * 115,300 848,608 Scottish Power * 7,500 49,836 The AES Corp. * 66,400 626,816 TXU Corp. * 37,460 888,551 ----------- 13,821,527 ENERGY - 2.00% CMS Energy Corp. * 1,000 55,152 MDU Resources Group, Inc. 8,810 209,766 Sempra Energy* 28,100 844,686 ----------- 1,109,604 GAS & PIPELINE UTILITIES - 10.11% AGL Resources, Inc. 9,300 270,630 Enagas * 90,200 977,369 Equitable Resources, Inc. 48,570 2,084,624 Kinder Morgan, Inc. 14,149 836,206 NiSource, Inc. 19,400 425,636 ONEOK, Inc. 13,000 287,040 Questar Corp. 10,020 352,203 SCANA Corp. 700 23,975 Severn Trent PLC * 7,500 100,275 Snam Rete Gas SPA * 57,750 244,481 ----------- 5,602,439 INTERNATIONAL OIL - 1.01% EnCana Corp. - CAD 4,900 193,369 Talisman Energy, Inc. - CAD 6,400 364,087 ----------- 557,456 PETROLEUM SERVICES - 3.09% GlobalSantaFe Corp. 16,500 409,695 Halliburton Company 23,600 613,600 Noble Corp. * 13,300 475,874 Transocean, Inc. * 8,800 211,288 ----------- 1,710,457 POLLUTION CONTROL - 0.68% Suez SA * 18,800 377,335 ----------- SANITARY SERVICES - 1.87% AWG PLC * 7,900 75,727 AWG PLC, Redeemable Shares * 350,000 625 United Utilities PLC 13,600 120,291 United Utilities PLC, Class A * 23,100 125,560 Veolia Environnement * 26,503 711,259 ----------- 1,033,462 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 9.92% Citizens Communications Company * 28,100 349,002 Deutsche Telekom AG * 39,100 714,822 France Telecom SA * 36,400 1,039,238 Hanaro Telecom, Inc. * 136,700 374,591 Japan Telecom Company, Ltd., ADR 97,000 259,766 KT Corp., ADR (a) 23,290 444,140 NTL, Inc. * 700 48,825 SBC Communications, Inc. 61,200 1,595,484 SK Telecom Company, Ltd., ADR * 1,300 217,121 Telecom Corporation Of New Zealand 16,000 452,000 Winstar Communications, Inc. * 3,270 3 ----------- 5,494,992 TELEPHONE - 9.45% Brasil Telecom Participacoes SA, ADR 6,000 226,800 CenturyTel, Inc. 3,100 101,122 Cincinnati Bell, Inc. * 149,100 752,955 Koninklijke (Royal) KPN NV * 150,100 1,157,406 Telefonica SA * 30,600 448,774 Telefonos de Mexico SA de CV, ADR, Class L 33,340 1,101,220 Verizon Communications, Inc. * 41,310 1,449,155 ----------- 5,237,432 TOTAL COMMON STOCK (Cost: $39,633,401) $45,544,455 ----------- PREFERRED STOCK - 1.87% ELECTRIC UTILITIES - 1.11% AES Trust III (a) 5,110 221,007 AES Trust VII * 4,080 186,660 Dominion Resources, Inc. * (a) 3,800 208,810 ----------- 616,477 ENERGY - 0.26% Sempra Energy* 5,100 145,146 ----------- TELEPHONE - 0.50% CenturyTel, Inc. * 10,300 278,100 ----------- TOTAL PREFERRED STOCK (Cost: $906,369) $ 1,039,723 -----------
The accompanying notes are an integral part of the financial statements. 149 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- U.S. TREASURY OBLIGATIONS - 2.20% U.S. TREASURY BONDS - 0.50% 5.25% due 11/15/2028 $277,000 $ 279,002 ----------- U.S. TREASURY NOTES - 1.63% 3.25% due 08/15/2007 810,000 826,232 3.375% due 01/15/2007 71,233 77,165 ----------- 903,397 U.S. TREASURY STRIPS - 0.07% PO, 5.38% due 02/15/2023 106,000 37,350 ----------- TOTAL U.S. TREASURY OBLIGATIONS (Cost: $1,224,991) $ 1,219,749 ----------- FOREIGN GOVERNMENT OBLIGATIONS - 0.03% GOVERNMENT OF MEXICO - 0.03% 11.50% due 05/15/2026 12,000 17,370 ----------- TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost: $15,180) $ 17,370 ----------- CORPORATE BONDS - 7.19% AUTOMOBILES - 0.01% Daimler Chrysler Holdings, 8.50% due 01/18/2031 6,000 7,169 ----------- BROADCASTING - 0.03% Continental Cablevision, Inc., 9.50% due 08/01/2013 8,000 9,241 CSC Holdings, Inc., Series B, 8.125% due 07/15/2009 5,000 5,375 ----------- 14,616 CABLE AND TELEVISION - 0.10% Rogers Cable Inc., 6.25% due 06/15/2013 42,000 42,315 Tele-Communications, Inc., 9.80% due 02/01/2012 11,000 14,349 ----------- 56,664 CELLULAR COMMUNICATIONS - 0.35% AT&T Wireless Services, Inc., 8.125% due 05/01/2012 155,000 182,272 Verizon Wireless Capital LLC, 5.375% due 12/15/2006 9,000 9,604 ----------- 191,876 DOMESTIC OIL - 0.05% Devon Financing Corp., ULC, 6.875% due 09/30/2011 25,000 28,348 ----------- ELECTRIC UTILITIES - 5.24% AES Corp., 8.75% due 05/15/2013 175,000 195,563 9.00% due 05/15/2015 160,000 180,800 Beaver Valley Funding Corp., 9.00% due 06/01/2017 102,000 117,241 Empresa Nacional De Electricidad, 8.35% due 08/01/2013 438,000 492,375 Enersis S A, 7.375% due 01/15/2014 351,000 361,378 FirstEnergy Corp., 6.45% due 11/15/2011 253,000 262,221 Midamerican Energy Holdings Company, 5.875% due 10/01/2012 43,000 45,087 6.927% due 03/01/2029 25,000 27,129 Nisource Finance Corp., 7.875% due 11/15/2010 154,000 183,166 PSEG Energy Holdings Llc, 7.75% due 04/16/2007 216,000 229,230 8.625% due 02/15/2008 176,000 192,060 Reliant Resources, Inc., 5.00% due 08/15/2010 150,000 170,062 9.25% due 07/15/2010 395,000 418,700 9.50% due 07/15/2013 25,000 26,750 ----------- 2,901,762 ENERGY - 1.01% El Paso Corp., zero coupon due 02/28/2021 1,124,000 517,040 TXU Corp., 6.375% due 06/15/2006 39,000 41,242 ----------- 558,282 GAS & PIPELINE UTILITIES - 0.02% Kinder Morgan Energy Partners, L.P., 7.30% due 08/15/2033 11,000 12,499 ----------- TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.18% Deutsche Telekom International Finance BV, FRN 8.75% due 06/15/2030 10,000 12,774 5.25% due 07/22/2013 84,000 84,859 ----------- 97,633 TELEPHONE - 0.20% France Telecom SA, FRN 10.00% due 03/01/2031 20,000 26,573 Telus Corp., 8.00% due 06/01/2011 61,000 71,326 Verizon New York, Inc., 6.875% due 04/01/2012 13,000 14,385 ----------- 112,284 TOTAL CORPORATE BONDS (Cost: $3,784,703) $ 3,981,133 ----------- SHORT TERM INVESTMENTS - 6.51% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $1,089,830 $ 1,089,830 Federal Home Loan Bank Discount Note, 00.01% due 01/02/2004 2,516,000 2,515,948 ----------- $ 3,605,778 TOTAL INVESTMENTS (UTILITIES TRUST) (Cost: $49,170,422) $55,408,209 ===========
REAL ESTATE SECURITIES TRUST
SHARES VALUE ------ ----- COMMON STOCK - 95.35% HOTELS & RESTAURANTS - 5.04% Hilton Hotels Corp. 1,069,600 $18,322,248 Starwood Hotels & Resorts Worldwide, Inc. * 358,500 12,895,245 ----------- 31,217,493
The accompanying notes are an integral part of the financial statements. 150 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- REAL ESTATE - 90.31% Apartment Investment & Management Company, Class A, REIT 5,500 $ 189,750 Archstone-Smith Trust, REIT 1,061,367 29,697,049 Arden Realty, Inc., REIT * 598,900 18,170,626 Avalon Bay Communities, Inc., REIT * 283,100 13,532,180 Boardwalk Equities Inc 203,100 2,808,873 Boston Properties, Inc., REIT 400,900 19,319,371 BRE Properties, Inc., Class A, REIT 297,200 9,926,480 Brookfield Properties Corp. 717,000 20,577,900 CarrAmerica Realty Corp., REIT 222,500 6,626,050 Catellus Development Corp., REIT 940,378 22,681,917 CenterPoint Properties Corp., REIT 156,400 11,714,360 Chelsea Property Group, Inc., REIT 450,300 24,680,943 Developers Diversified Realty Corp., REIT 413,900 13,894,623 Equity Office Properties Trust, REIT 47,000 1,346,550 Equity Residential, REIT * 1,351,400 39,879,814 Essex Property Trust, REIT 65,200 4,187,144 General Growth Properties, Inc., REIT 1,167,400 32,395,350 Glenborough Realty Trust, Inc., REIT 148,500 2,962,575 Highwoods Properties, Inc., REIT 569,700 14,470,380 Home Properties Inc., REIT 321,800 12,997,502 Host Marriott Corp., REIT * 1,726,300 21,268,016 Liberty Property Trust, REIT (a) 231,300 8,997,570 Mack-California Realty Corp., REIT * 586,600 24,414,292 Pan Pacific Retail Properties, Inc., REIT 532,500 25,373,625 Pennsylvania Real Estate Investment Trust, REIT 344,585 12,508,434 ProLogis, REIT 1,368,300 43,908,747 Public Storage, Inc., REIT 266,000 11,541,740 Reckson Associates Realty Corp., REIT 158,300 3,846,690 Regency Centers Corp., REIT 369,200 14,712,620 Rouse Company, REIT 292,300 13,738,100 Simon Property Group, Inc., REIT 980,400 45,431,736 SL Green Realty Corp., REIT 156,200 6,412,010 Summit Properties, Inc., REIT * 240,300 5,772,006 Taubman Centers, Inc., REIT 284,600 5,862,760 United Dominion Realty Trust, Inc., REIT 723,400 13,889,280 ------------ 559,737,063 TOTAL COMMON STOCK (Cost: $463,719,894) $590,954,556 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 1.48% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 9,194,175 $ 9,194,175 ------------ REPURCHASE AGREEMENTS - 3.17% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $19,630,436 on 01/02/2004, collateralized by $15,625,000 U.S. Treasury Bonds, 7.50% due 11/15/2016 (valued at $20,028,453, including interest). $19,630,000 $ 19,630,000 ------------ TOTAL INVESTMENTS (REAL ESTATE SECURITIES TRUST) (Cost: $492,544,069) $619,778,731 ============
SMALL CAP OPPORTUNITIES TRUST
SHARES VALUE ------ ----- COMMON STOCK - 85.43% AEROSPACE - 1.65% Alliant Techsystems, Inc. * 17,000 $ 981,920 Triumph Group, Inc. * (a) 8,500 309,400 ---------- 1,291,320 AIR FREIGHT - 0.96% ExpressJet Holdings, Inc. * 50,100 751,500 ---------- AUTO PARTS - 5.05% American Axle & Manufacturing Holdings, Inc. * 38,800 1,568,296 BorgWarner, Inc. 14,200 1,207,994 China Yuchai International, Ltd. (a) 5,900 180,540 Noble International, Ltd. (a) 44,000 1,003,200 ---------- 3,960,030 AUTO SERVICES - 0.35% Spartan Motors, Inc. (a) 27,200 274,720 ---------- AUTOMOBILES - 1.22% Thor Industries, Inc. 8,800 494,736 United Auto Group, Inc. 14,700 460,110 ---------- 954,846 BANKING - 1.10% IBERIABANK Corp. 3,775 222,725 Prosperity Bancshares, Inc. (a) 16,000 360,320 UCBH Holdings, Inc. 7,100 276,687 ---------- 859,732 BUILDING MATERIALS & CONSTRUCTION - 0.85% WCI Communities, Inc. * 32,300 665,703 ---------- BUSINESS SERVICES - 0.60% Right Management Consultants, Inc. * 25,000 466,500 ---------- CHEMICALS - 0.80% Minerals Technologies, Inc. 10,600 628,050 ---------- COAL - 0.92% CONSOL Energy, Inc. (a) 27,900 722,610 ---------- COMPUTERS & BUSINESS EQUIPMENT - 1.99% CACI International, Inc., Class A * 16,300 792,506 Cray, Inc. * 30,000 297,900 Digi International, Inc. * 48,700 467,520 ---------- 1,557,926 CONSTRUCTION MATERIALS - 0.28% Universal Forest Products, Inc. 6,940 223,329 ---------- CONSTRUCTION & MINING EQUIPMENT - 1.30% Pason Systems, Inc. 52,400 1,021,767 ---------- CONTAINERS & GLASS - 0.48% Jarden Corp. * (a) 13,900 380,026 ---------- CRUDE PETROLEUM & NATURAL GAS - 0.71% Cimarex Energy Company * 11,000 293,590 Unit Corp. * 11,200 263,760 ---------- 557,350 DOMESTIC OIL - 2.38% Denbury Resources, Inc. * 48,000 667,680 Magnum Hunter Resources, Inc. * (a) 49,850 474,073 Oil States International, Inc. * 16,500 230,010 TETRA Technologies, Inc. * 20,350 493,284 ---------- 1,865,047
The accompanying notes are an integral part of the financial statements. 151 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- ELECTRICAL EQUIPMENT - 1.04% AMETEK, Inc. 8,100 $ 390,906 Craftmade International, Inc. 16,225 425,744 ---------- 816,650 ELECTRIC UTILITIES - 0.83% ALLETE, Inc. 21,300 651,780 ---------- ELECTRONICS - 1.48% Franklin Electric, Inc. 3,300 199,617 Itron, Inc. * (a) 18,900 347,004 Manufacturers Services, Ltd. * (a) 100,500 611,040 ---------- 1,157,661 ENERGY - 2.84% Headwaters, Inc. * 52,700 1,033,974 New Jersey Resources Corp. 11,600 446,716 Southwestern Energy Company * (a) 31,100 743,290 ---------- 2,223,980 FINANCIAL SERVICES - 7.06% Accredited Home Lenders Holding Company * (a) 47,000 1,438,200 Affiliated Managers Group, Inc. * 7,300 508,007 Federal Agricultural Mortgage Corp., Class C * (a) 6,875 219,725 Friedman Billings Ramsey Group, Inc. 75,100 1,733,308 New Century Financial Corp. (a) 41,150 1,632,420 ---------- 5,531,660 FOOD & BEVERAGES - 2.29% American Italian Pasta Company, Class A * (a) 19,900 833,810 Constellation Brands, Inc., Class A * 29,300 964,849 ---------- 1,798,659 FURNITURE & FIXTURES - 0.71% Furniture Brands International, Inc. (a) 19,100 560,203 ---------- HEALTHCARE PRODUCTS - 5.13% Merit Medical Systems, Inc. * (a) 56,177 1,250,507 Orthofix International N.V. * 16,900 827,762 Owens & Minor, Inc. 19,200 420,672 Polymedica Corp. (a) 21,400 563,034 Respironics, Inc. * 12,100 545,589 Young Innovations, Inc. 11,500 414,000 ---------- 4,021,564 HEALTHCARE SERVICES - 1.89% AMERIGROUP Corp. * 10,100 430,765 ICON PLC, ADR * 16,950 739,020 LabOne, Inc. * 9,600 311,712 ---------- 1,481,497 HOMEBUILDERS - 3.58% Dominion Homes, Inc. * (a) 18,700 567,171 Pulte Homes, Inc. * 9,800 917,476 Ryland Group, Inc. 14,900 1,320,736 ---------- 2,805,383 HOTELS & RESTAURANTS - 1.34% RARE Hospitality International, Inc. * 14,600 356,824 Ruby Tuesday, Inc. * 24,400 695,156 ---------- 1,051,980 INDUSTRIAL MACHINERY - 1.46% FMC Technologies, Inc. * 31,475 733,368 Graco, Inc. 10,200 409,020 ---------- 1,142,388 INSURANCE - 4.77% Arthur J. Gallagher & Company 13,000 422,370 Hub International, Ltd. 25,000 419,000 Radian Group, Inc. (a) 16,800 819,000 RenaissanceRe Holdings, Ltd. 16,300 799,515 RLI Corp. 18,600 696,756 Scottish Re Group, Ltd. 27,875 579,242 ---------- 3,735,883 INTERNET SOFTWARE - 0.33% WebMethods, Inc. * 27,900 255,285 ---------- INVESTMENT COMPANIES - 1.54% iShares Russell 2000 Value Index Fund 4,000 641,600 MCG Capital Corp. (a) 29,100 567,450 ---------- 1,209,050 LEISURE TIME - 1.35% Multimedia Games, Inc. * (a) 10,100 415,110 Penn National Gaming, Inc. * 27,800 641,624 ---------- 1,056,734 MANUFACTURING - 1.09% AptarGroup, Inc. 9,800 382,200 Carlisle Companies, Inc. 7,700 468,622 ---------- 850,822 MEDICAL-HOSPITALS - 0.39% VCA Antech, Inc. * 9,900 306,702 ---------- METAL & METAL PRODUCTS - 1.37% Matthews International Corp., Class A 14,300 423,137 NN, Inc. 51,900 653,421 ---------- 1,076,558 PETROLEUM SERVICES - 1.24% Key Energy Services, Inc. * 27,400 282,494 Oceaneering International, Inc. * 24,550 687,400 ---------- 969,894 PHARMACEUTICALS - 0.57% Nabi Biopharmaceuticals * (a) 35,400 449,934 ---------- PLASTICS - 0.28% Spartech Corp. 9,000 221,760 ---------- RAILROADS & EQUIPMENT - 1.71% Genesee & Wyoming, Inc., Class A * 42,500 1,338,750 ---------- REAL ESTATE - 10.58% American Financial Realty Trust, REIT 18,705 318,920 American Home Mortgage Investment Corp., REIT 62,900 1,415,879 Anthracite Capital, Inc., REIT 14,400 159,408 Anworth Mortgage Asset Corp., REIT 56,800 791,224 Ashford Hospitality Trust, Inc., REIT * 50,200 471,378 Corporate Office Properties Trust, REIT 25,000 525,000 Correctional Properties Trust, REIT 33,850 974,880 Highland Hospitality Corp., REIT * (a) 64,100 698,690 Luminent Mortgage Capital, Inc., REIT 45,600 642,960 Newcastle Investment Corp., REIT 36,725 995,248 RAIT Investment Trust, REIT 22,600 578,560 The Mills Corp., REIT 16,400 721,600 ---------- 8,293,747 RETAIL GROCERY - 0.21% United Natural Foods, Inc. * 4,600 165,186 ---------- RETAIL TRADE - 3.77% Guitar Center, Inc. * 13,500 439,830 Hancock Fabrics, Inc. (a) 28,700 415,576 Hibbett Sporting Goods, Inc. * 17,950 534,910 Party City Corp. * 23,600 299,484 Ritchie Brothers Auctioneers, Inc. 7,400 392,940 School Specialty, Inc. * (a) 13,400 455,734
The accompanying notes are an integral part of the financial statements. 152 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- RETAIL TRADE - CONTINUED Sonic Automative, Inc. 18,200 $ 417,144 ----------- 2,955,618 SEMICONDUCTORS - 0.67% Sigmatel, Inc. * 12,400 306,032 White Electronic Designs Corp. * 24,500 215,600 ----------- 521,632 SOFTWARE - 0.83% Websense, Inc. * (a) 22,175 648,397 ----------- TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.27% REMEC, Inc. * (a) 25,300 212,773 ----------- TRANSPORTATION - 1.06% Golar LNG, Ltd. * (a) 57,950 828,106 ----------- TRUCKING & FREIGHT - 3.11% Landstar Systems, Inc. * 21,800 829,272 Old Dominion Freight Lines, Inc. * 19,500 664,560 Oshkosh Truck Corp. 18,500 944,055 ----------- 2,437,887 TOTAL COMMON STOCK (Cost: $53,434,627) $66,958,579 -----------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 12.18% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $9,545,847 $ 9,545,847 ----------- REPURCHASE AGREEMENTS - 2.39% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $1,873,042 on 01/02/2004, collateralized by $1,925,000 U.S. Treasury Bills, 0.890% due 06/24/2004 (valued at $1,915,375, including interest). $1,873,000 $ 1,873,000 ----------- TOTAL INVESTMENTS (SMALL CAP OPPORTUNITIES TRUST) (Cost: $64,853,474) $78,377,426 ===========
SMALL COMPANY VALUE TRUST
SHARES VALUE ------ ----- COMMON STOCK - 87.15% AEROSPACE - 1.08% EDO Corp. * 134,200 $ 3,308,030 Woodward Governor Company (a) 53,800 3,057,454 ----------- 6,365,484 APPAREL & TEXTILES - 1.66% Culp, Inc. * (a) 157,100 1,712,390 G & K Services, Class A * 138,700 5,097,225 Unifi, Inc. * 460,300 2,968,935 ----------- 9,778,550 AUTO PARTS - 1.24% TBC Corp. * 282,800 7,299,068 ----------- AUTO SERVICES - 0.54% Dollar Thrifty Automotive Group, Inc. * 123,600 3,206,184 ----------- BANKING - 7.32% Community First Bankshares, Inc. (a) 259,945 7,522,808 East West Bancorp, Inc. 156,200 8,384,816 First Republic Bank (a) 214,700 7,686,260 Silicon Valley Bancshares * 247,500 8,927,325 Texas Regional Bancshares, Inc., Class A 286,320 10,593,840 ----------- 43,115,049 BIOTECHNOLOGY - 1.70% Exelixis, Inc. * (a) 315,300 2,232,324 Lexicon Genetics, Inc. * (a) 455,800 2,684,662 Progress Software Corp. * 249,800 5,110,908 ----------- 10,027,894 BROADCASTING - 1.19% Saga Communications, Inc., Class A * 312,600 5,792,478 Sinclair Broadcast Group, Inc., Class A * (a) 82,100 1,224,932 ----------- 7,017,410 BUSINESS SERVICES - 3.67% Electro Rent Corp. * 307,800 4,106,052 FTI Consulting, Inc. * (a) 209,400 4,893,678 McGrath Rentcorp 135,102 3,681,530 MPS Group, Inc. * 581,100 5,433,285 Right Management Consultants, Inc. * 135,000 2,519,100 Systems & Computer Technology Corp. * 58,100 949,935 ----------- 21,583,580 CHEMICALS - 2.27% Airgas, Inc. 247,900 5,324,892 Arch Chemicals, Inc. (a) 181,000 4,644,460 MacDermid, Inc. (a) 98,900 3,386,336 ----------- 13,355,688 CONSTRUCTION MATERIALS - 1.75% Ameron International Corp. 90,500 3,139,445 Florida Rock Industries, Inc. 89,550 4,911,818 JLG Industries, Inc. * 147,700 2,249,471 ----------- 10,300,734 CONSTRUCTION & MINING EQUIPMENT - 0.79% Carbo Ceramics, Inc. 91,000 4,663,750 ----------- DOMESTIC OIL - 2.75% Forest Oil Corp. * 214,500 6,128,265 Magnum Hunter Resources, Inc. * (a) 437,100 4,156,821 TETRA Technologies, Inc. * 242,400 5,875,776 ----------- 16,160,862 DRUGS & HEALTH CARE - 2.02% Arrow International, Inc. (a) 90,100 2,250,698 Bone Care International, Inc. * (a) 234,500 2,987,530 Diversa Corp. * (a) 360,600 3,335,550 Landauer, Inc. 80,700 3,290,946 ----------- 11,864,724 ELECTRICAL EQUIPMENT - 2.58% C & D Technologies, Inc. * 204,100 3,912,597 Cable Design Technologies Corp. * (a) 532,100 4,783,579 Littelfuse, Inc. * 169,544 4,886,258 Methode Electronics, Inc., Class A * 132,900 1,625,367 ----------- 15,207,801 ELECTRIC UTILITIES - 2.15% Black Hills Corp. 134,600 4,015,118 Cleco Corp. (a) 177,700 3,195,046 El Paso Electric Company * 208,400 2,782,140 Otter Tail Corp. (a) 98,900 2,643,597 ----------- 12,635,901 ELECTRONICS - 1.57% Analogic Corp. * 51,000 2,091,000 Franklin Electric, Inc. 118,000 7,137,820 ----------- 9,228,820
The accompanying notes are an integral part of the financial statements. 153 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- FINANCIAL SERVICES - 1.33% Triad Guaranty, Inc. * 155,399 $ 7,824,340 ------------ FOOD & BEVERAGES - 0.55% American Italian Pasta Company, Class A * (a) 76,800 3,217,920 ------------ FOREST PRODUCTS - 0.70% Deltic Timber Corp. 135,200 4,110,080 ------------ FURNITURE & FIXTURES - 0.57% Stanley Furniture Company, Inc. (a) 107,000 3,370,500 ------------ GAS & PIPELINE UTILITIES - 0.57% Vectren Corp. 135,200 3,332,680 ------------ HEALTHCARE PRODUCTS - 1.17% Owens & Minor, Inc. 314,900 6,899,459 ------------ HOTELS & RESTAURANTS - 4.11% LaSalle Hotel Properties 197,900 3,671,045 RARE Hospitality International, Inc. * 297,550 7,272,122 Ruby Tuesday, Inc. * 465,000 13,247,850 ------------ 24,191,017 INDUSTRIAL MACHINERY - 0.89% IDEX Corp. * 126,700 5,269,453 ------------ INSURANCE - 4.37% Brown & Brown, Inc. 243,700 7,947,057 Markel Corp. * 21,900 5,551,869 ProAssurance Corp. * (a) 269,000 8,648,350 Scottish Re Group, Ltd. (a) 170,800 3,549,224 ------------ 25,696,500 INTERNET SOFTWARE - 0.45% Netegrity, Inc. * 256,400 2,643,484 ------------ INVESTMENT COMPANIES - 3.29% Allied Capital Corp. 269,600 7,516,448 American Capital Strategies, Ltd. (a) 97,000 2,883,810 First Financial Fund, Inc. (a) 263,100 4,651,608 iShares Russell 2000 Value Index Fund 27,000 4,330,800 ------------ 19,382,666 LEISURE TIME - 1.05% SCP Pool Corp. * 189,300 6,186,324 ------------ LIFE SCIENCES - 0.48% Symyx Technologies, Inc. * 137,200 2,819,460 ------------ MANUFACTURING - 3.22% AptarGroup, Inc. 157,900 6,158,100 Nordson Corp. 184,444 6,368,851 Thomas Industries, Inc. (a) 184,800 6,405,168 ------------ 18,932,119 METAL & METAL PRODUCTS - 1.47% Matthews International Corp., Class A 292,900 8,666,911 ------------ MINING - 1.03% Penn Virginia Corp. 108,900 6,060,285 ------------ MOBILE HOMES - 0.69% Skyline Corp. * 117,200 4,086,764 ------------ NEWSPAPERS - 0.64% Journal Register Company * 180,700 3,740,490 ------------ PAPER - 0.82% Wausau-Mosinee Paper Corp. * 357,800 4,837,456 ------------ PETROLEUM SERVICES - 1.21% Atwood Oceanics, Inc. * (a) 86,400 2,759,616 Lone Star Technologies, Inc. * (a) 112,600 1,799,348 W-H Energy Services, Inc. * 157,300 2,548,260 ------------ 7,107,224 REAL ESTATE - 4.55% Aaron Rents, Inc., Class A 14,700 271,803 Bedford Property Investments, Inc. 164,000 4,695,320 Glenborough Realty Trust, Inc., REIT 125,700 2,507,715 Innkeepers USA Trust, REIT 324,400 2,715,228 Kilroy Realty Corp., REIT * 202,700 6,638,425 Sun Communities, Inc., REIT 155,200 6,006,240 Washington REIT, REIT 135,200 3,947,840 ------------ 26,782,571 RETAIL GROCERY - 0.40% Wild Oats Markets, Inc. * (a) 180,400 2,332,572 ------------ RETAIL TRADE - 6.75% Aaron Rents, Inc., Class B 354,800 7,142,124 Casey's General Stores, Inc. 310,500 5,483,430 CSS Industries, Inc. 155,650 4,826,706 Fred's, Inc., Class A 262,100 8,119,858 Hancock Fabrics, Inc. (a) 204,700 2,964,056 Haverty Furniture Companies, Inc. 359,600 7,141,656 Stein Mart, Inc. * 495,600 4,083,744 ------------ 39,761,574 SANITARY SERVICES - 2.15% Casella Waste Systems, Inc., Class A * 380,300 5,206,307 Insituform Technologies, Inc., Class A * (a) 277,900 4,585,350 Waste Connections, Inc. * 75,500 2,851,635 ------------ 12,643,292 SEMICONDUCTORS - 2.23% ATMI, Inc. * (a) 146,000 3,378,440 Exar Corp. * 252,800 4,317,824 Mykrolis Corp. * 337,200 5,422,176 ------------ 13,118,440 SOFTWARE - 2.46% Packeteer, Inc. * (a) 346,200 5,878,476 SPSS, Inc. * 218,700 3,910,356 Websense, Inc. * (a) 160,400 4,690,096 ------------ 14,478,928 STEEL - 1.52% Carpenter Technology Corp. 141,500 4,184,155 Gibraltar Steel Corp. 189,600 4,768,440 ------------ 8,952,595 TIRES & RUBBER - 0.38% Myers Indiana, Inc. * 184,100 2,231,292 ------------ TRANSPORTATION - 0.91% Kirby Corp. * 153,600 5,357,568 ------------ TRUCKING & FREIGHT - 2.91% Landstar Systems, Inc. * 320,400 12,188,016 UTI Worldwide, Inc. 130,000 4,930,900 ------------ 17,118,916 TOTAL COMMON STOCK (Cost: $422,512,400) $512,964,379 ------------
The accompanying notes are an integral part of the financial statements. 154 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 12.65% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $53,925,328 $ 53,925,328 T. Rowe Price Reserve Investment Fund (c) 20,543,879 20,543,879 ------------ $ 74,469,207 REPURCHASE AGREEMENTS - 0.20% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $1,179,026 on 01/02/2004, collateralized by $940,000 U.S Treasury Bonds, 7.5% due 11/15/2016 (valued at $1,204,912, including interest). $ 1,179,000 $ 1,179,000 ------------ TOTAL INVESTMENTS (SMALL COMPANY VALUE TRUST) (Cost: $498,160,607) $588,612,586 ============
SPECIAL VALUE TRUST
SHARES VALUE ------ ----- COMMON STOCK - 69.23% AEROSPACE - 0.92% Alliant Techsystems, Inc. * 900 $ 51,984 DRS Technologies, Inc. * (a) 2,900 80,562 Heico Corp., Class A * (a) 5,000 70,400 ---------- 202,946 AIR TRAVEL - 1.05% SkyWest, Inc. * (a) 12,800 231,936 ---------- APPAREL & TEXTILES - 1.47% Oshkosh B'Gosh, Inc., Class A (a) 6,100 130,906 Timberland Company, Class A * 3,700 192,659 ---------- 323,565 BANKING - 5.25% Amcore Financial, Inc. (a) 3,100 83,762 BancTrust Financial Group, Inc. 100 1,605 Corus Bankshares, Inc. 3,600 113,616 Cullen Frost Bankers, Inc. 4,000 162,280 First Charter Corp. * (a) 6,100 119,255 First Street Bancorporation 2,900 100,775 IBERIABANK Corp. 1,200 70,800 Pacific Capital Bancorp * 5,100 187,782 Sterling Bancorp (a) 2,950 84,075 Umpqua Holdings Corp. * (a) 4,900 101,871 Webster Financial Corp. 2,800 128,408 ---------- 1,154,229 BIOTECHNOLOGY - 0.59% Millipore Corp. * (a) 3,000 129,150 ---------- BUSINESS SERVICES - 2.83% Black Box Corp. * (a) 2,900 133,603 John H. Harland Company (a) 4,800 131,040 Labor Ready, Inc. * (a) 12,300 161,130 Perot Systems Corp., Class A * (a) 3,500 47,180 Watson Wyatt & Company Holdings * 6,200 149,730 ---------- 622,683 CHEMICALS - 1.51% A. Schulman, Inc. * 4,300 91,676 Cabot Corp. 3,300 105,072 Lubrizol Corp. * 3,700 120,324 Penford Corp. 1,100 14,738 ---------- 331,810 COMPUTERS & BUSINESS EQUIPMENT - 1.76% 3Com Corp. * 8,700 71,079 Electronics For Imaging, Inc. * (a) 4,800 124,896 Rimage Corp. * 5,600 88,653 Tech Data Corp. * 2,600 103,194 ---------- 387,822 CONSTRUCTION MATERIALS - 1.22% EMCOR Group, Inc. * (a) 2,900 127,310 Granite Construction, Inc. 1,900 44,631 Patrick Industries, Inc. 11,700 96,642 ---------- 268,583 CONTAINERS & GLASS - 0.82% Smurfit-Stone Container Corp. 9,700 180,129 ---------- COSMETICS & TOILETRIES - 0.91% Steiner Leisure, Ltd. * (a) 14,000 200,200 ---------- CRUDE PETROLEUM & NATURAL GAS - 0.86% Newfield Exploration Company * 900 40,086 XTO Energy, Inc. 5,300 149,990 ---------- 190,076 ELECTRICAL EQUIPMENT - 0.14% Powell Industries, Inc. * 1,600 30,640 ---------- ELECTRIC UTILITIES - 0.45% El Paso Electric Company * (a) 4,600 61,410 MGE Energy, Inc. (a) 1,200 37,812 ---------- 99,222 ELECTRONICS - 2.14% Bel Fuse, Inc., Class B * (a) 3,300 107,679 I.D. Systems, Inc. * (a) 6,000 41,100 Imation Corp. (a) 2,000 70,300 Mercury Computer Systems, Inc. * 3,800 94,620 Roper Industries, Inc. (a) 3,200 157,632 ---------- 471,331 ENERGY - 0.49% New Jersey Resources Corp. 2,800 107,828 ---------- FINANCIAL SERVICES - 1.13% Downey Financial Corp. 3,200 157,760 Triad Guaranty, Inc. * 1,800 90,630 ---------- 248,390 FOOD & BEVERAGES - 1.48% Hain Celestial Group, Inc. * (a) 4,900 113,729 Sensient Technologies Corp. (a) 10,700 211,539 ---------- 325,268 FURNITURE & FIXTURES - 1.04% Furniture Brands International, Inc. (a) 7,800 228,774 ---------- GAS & PIPELINE UTILITIES - 0.50% Northwest Natural Gas Company 3,600 110,700 ---------- HEALTHCARE PRODUCTS - 0.38% VitalWorks, Inc. * 19,000 83,980 ---------- HEALTHCARE SERVICES - 4.51% AMERIGROUP Corp. * (a) 3,000 127,950 Apria Healthcare Group, Inc. * (a) 6,400 182,208 Cross Country Healthcare Inc. * (a) 12,000 179,040 Health Net, Inc. * 4,000 130,800 MedQuist, Inc. * 12,500 200,750 National Dentex Corp. * 7,100 170,400 ---------- 991,148
The accompanying notes are an integral part of the financial statements. 155 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- HOTELS & RESTAURANTS - 2.78% Benihana Inc. Class A * 10,400 $ 133,640 Extended Stay America, Inc. 11,200 162,176 LaSalle Hotel Properties 6,300 116,865 O'Charley's, Inc. * (a) 11,100 199,245 ----------- 611,926 INDUSTRIAL MACHINERY - 5.14% AGCO Corp. * 11,500 231,610 Albany International Corp., Class A 5,100 172,890 Cognex Corp. 3,700 104,488 Cummins, Inc. (a) 3,000 146,820 IDEX Corp. * (a) 3,600 149,724 Lindsay Manufacturing Company (a) 3,700 93,425 Manitowoc, Inc. (a) 2,200 68,640 Sauer-Danfoss, Inc. * (a) 10,000 162,000 ----------- 1,129,597 INDUSTRIALS - 1.47% Crane Company 6,400 196,736 Harsco Corp. 2,900 127,078 ----------- 323,814 INSURANCE - 3.47% CNA Surety Corp. * (a) 8,700 82,737 Direct General Corp. 2,500 82,750 Midland Company (a) 5,700 134,634 Ohio Casualty Corp. * (a) 6,400 111,104 RLI Corp. (a) 4,600 172,316 Scottish Re Group, Ltd. (a) 8,600 178,708 ----------- 762,249 INTERNET RETAIL - 0.41% NetIQ Corp. * (a) 6,800 90,100 ----------- INVESTMENT COMPANIES - 2.70% iShares Russell 2000 Value Index Fund 3,700 593,480 ----------- MANUFACTURING - 2.86% AptarGroup, Inc. 4,400 171,600 Kaydon Corp. * (a) 7,100 183,464 Pentair, Inc. 4,500 205,650 Thomas Industries, Inc. 2,000 69,320 ----------- 630,034 MEDICAL-HOSPITALS - 0.72% Rehabcare Group, Inc. * (a) 7,400 157,324 ----------- METAL & METAL PRODUCTS - 1.56% Mueller Industry, Inc. * 4,700 161,492 Timken Company 9,000 180,540 ----------- 342,032 OFFICE FURNISHINGS & SUPPLIES - 1.53% Ikon Office Solutions, Inc. 16,900 200,434 United Stationers, Inc. * 3,300 135,036 ----------- 335,470 PAPER - 0.98% P.H. Glatfelter Company 5,200 64,740 Pope & Talbot, Inc. (a) 8,500 149,685 ----------- 214,425 PETROLEUM SERVICES - 0.35% Superior Energy Services, Inc. * 4,200 39,480 Varco International, Inc. * 1,800 37,134 ----------- 76,614 PHARMACEUTICALS - 0.25% Bentley Pharmaceuticals, Inc. * 4,200 55,860 ----------- RAILROADS & EQUIPMENT - 0.55% Wabtec Corp. (a) 7,100 120,984 ----------- REAL ESTATE - 3.28% American Land Lease, Inc. 3,400 67,830 Cousins Properties, Inc. 3,300 100,980 Duke Realty Corp. 2,600 80,600 Equity One, Inc. 7,000 118,160 Host Marriott Corp., REIT * 8,200 101,024 Liberty Property Trust, REIT (a) 2,200 85,580 Mission West Properties, Inc. * 4,800 62,160 Pan Pacific Retail Properties, Inc., REIT 2,200 104,830 ----------- 721,164 RETAIL TRADE - 3.71% Deb Shops, Inc. * (a) 3,600 77,400 Dillard's, Inc., Class A * (a) 10,300 169,538 Linens'n Things, Inc. * 7,200 216,576 The Buckle, Inc. (a) 6,000 132,900 The Neiman Marcus Group, Inc., Class A * (a) 4,100 220,047 ----------- 816,461 SEMICONDUCTORS - 0.98% Exar Corp. * (a) 6,000 102,480 Lattice Semiconductor Corp. * (a) 5,400 52,272 Richardson Electronics, Ltd. (a) 5,000 61,450 ----------- 216,202 SOFTWARE - 0.68% EPIQ Systems, Inc. * (a) 7,900 135,327 Moldflow Corp. * 1,200 13,620 ----------- 148,947 STEEL - 0.57% Gibraltar Steel Corp. (a) 5,000 125,750 ----------- TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.68% Citizens Communications Company * 2,700 33,534 Inet Technologies, Inc. * 9,700 116,400 ----------- 149,934 TRANSPORTATION - 1.11% Kirby Corp. * 3,700 129,056 Stonepath Group, Inc. * (a) 50,500 114,130 ----------- 243,186 TRUCKING & FREIGHT - 2.00% Arkansas Best Corp. (a) 4,300 134,977 Covenant Transport, Inc. * 4,400 83,644 Navistar International Corp. * 4,600 220,294 ----------- 438,915 TOTAL COMMON STOCK (Cost: $12,793,911) $15,224,878 -----------
AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 19.32% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $4,248,886 $ 4,248,886 ----------- REPURCHASE AGREEMENTS - 11.45% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $2,519,056 on 01/02/2004, collateralized by $2,585,000 U.S. Treasury Bills, 0.89% due 06/24/2004 (valued at $2,572,075, including interest). $2,519,000 $ 2,519,000 ----------- TOTAL INVESTMENTS (SPECIAL VALUE TRUST) (Cost: $19,561,797) $21,992,764 ===========
The accompanying notes are an integral part of the financial statements. 156 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) MID CAP VALUE TRUST
SHARES VALUE ------ ----- COMMON STOCK - 88.23% ADVERTISING - 1.07% The Interpublic Group of Companies, Inc. (a) 338,100 $ 5,274,360 ------------ AGRICULTURE - 4.20% Archer-Daniels-Midland Company 569,800 8,672,356 Monsanto Company 418,400 12,041,552 ------------ 20,713,908 APPAREL & TEXTILES - 1.61% Tommy Hilfiger Corp. * 536,300 7,942,603 ------------ AUTO PARTS - 4.19% Dana Corp. 579,600 10,635,660 Genuine Parts Company 302,600 10,046,320 ------------ 20,681,980 BUSINESS SERVICES - 1.00% Cadence Design Systems, Inc. * 273,100 4,910,338 ------------ CHEMICALS - 4.93% Crompton Corp. 694,300 4,978,131 Eastman Chemical Company * 315,200 12,459,856 IMC Global, Inc. (a) 690,700 6,858,651 ------------ 24,296,638 COMPUTERS & BUSINESS EQUIPMENT - 1.54% Sybase, Inc. * 367,900 7,571,382 ------------ CONTAINERS & GLASS - 3.80% Ball Corp. 138,400 8,244,488 Pactiv Corp. * 438,200 10,472,980 ------------ 18,717,468 CRUDE PETROLEUM & NATURAL GAS - 1.81% EOG Resources, Inc. 193,100 8,915,427 ------------ ELECTRICAL EQUIPMENT - 1.93% Hubbell, Inc., Class B * 216,100 9,530,010 ------------ ELECTRIC UTILITIES - 4.89% Ameren Corp. (a) 213,300 9,811,800 CMS Energy Corp. (a) 605,100 5,155,452 Northeast Utilities 351,200 7,083,704 Puget Energy, Inc. * 87,200 2,072,744 ------------ 24,123,700 FOOD & BEVERAGES - 1.11% Dean Foods Company * 98,500 3,237,695 Smithfield Foods, Inc. * 107,700 2,229,390 ------------ 5,467,085 FURNITURE & FIXTURES - 1.15% Leggett & Platt, Inc. 262,900 5,686,527 ------------ GAS & PIPELINE UTILITIES - 1.88% NiSource, Inc. 232,000 5,090,080 Southwest Gas Corp. 186,000 4,175,700 ------------ 9,265,780 HEALTHCARE PRODUCTS - 2.14% Bausch & Lomb, Inc. * 203,000 10,535,700 ------------ HEALTHCARE SERVICES - 3.41% Caremark Rx, Inc. * 353,100 8,944,023 Health Net, Inc. * 240,600 7,867,620 ------------ 16,811,643 HOTELS & RESTAURANTS - 1.77% Park Place Entertainment Corp. * 607,700 6,581,391 Yum! Brands, Inc. * 62,100 2,136,240 ------------ 8,717,631 HOUSEHOLD PRODUCTS - 1.29% Newell Rubbermaid, Inc. 279,900 6,373,323 ------------ INDUSTRIAL MACHINERY - 3.26% CNH Global NV 195,562 3,246,329 Cummins, Inc. (a) 123,400 6,039,196 W.W. Grainger, Inc. 143,000 6,776,770 ------------ 16,062,295 INSURANCE - 12.60% Aetna, Inc. 141,300 9,549,054 Arthur J. Gallagher & Company (a) 139,900 4,545,351 Everest Re Group, Ltd. 133,300 11,277,180 PartnerRe, Ltd. (a) 162,300 9,421,515 SAFECO Corp. * 280,800 10,931,544 The PMI Group, Inc. (a) 112,400 4,184,652 Transatlantic Holdings, Inc. 15,500 1,252,400 XL Capital, Ltd., Class A 141,300 10,957,815 ------------ 62,119,511 MANUFACTURING - 2.01% Snap-on, Inc. 306,800 9,891,232 ------------ METAL & METAL PRODUCTS - 1.54% Timken Company 379,500 7,612,770 ------------ MINING - 1.58% Potash Corporation of Saskatchewan, Inc. * 90,400 7,817,792 ------------ OFFICE FURNISHINGS & SUPPLIES - 1.89% Office Depot, Inc. * 558,100 9,325,851 ------------ PAPER - 4.14% Georgia-Pacific Corp. 393,070 12,055,457 MeadWestvaco Corp. 280,400 8,341,900 ------------ 20,397,357 PETROLEUM SERVICES - 4.80% GlobalSantaFe Corp. 203,200 5,045,456 Halliburton Company 415,500 10,803,000 Pride International, Inc. * 419,700 7,823,208 ------------ 23,671,664 PHARMACEUTICALS - 1.68% King Pharmaceuticals, Inc. * 193,400 2,951,284 Mylan Laboratories, Inc. (a) 210,900 5,327,334 ------------ 8,278,618 PUBLISHING - 0.43% American Greetings Corp., Class A * (a) 97,200 2,125,764 ------------ REAL ESTATE - 3.21% Health Care Property Investors, Inc., REIT 33,600 1,706,880 Healthcare Realty Trust 182,200 6,513,650
The accompanying notes are an integral part of the financial statements. 157 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- REAL ESTATE - 3.21% Host Marriott Corp., REIT * 617,096 $ 7,602,623 ------------ 15,823,153 RETAIL GROCERY - 0.45% Safeway, Inc. * 101,400 2,221,674 ------------ RETAIL TRADE - 6.62% Big Lots, Inc. * 448,360 6,371,195 Federated Department Stores, Inc. 42,900 2,021,877 Foot Locker, Inc. 384,800 9,023,560 J.C. Penney Company, Inc. * 344,900 9,063,972 May Department Stores Company 71,000 2,063,970 Payless ShoeSource, Inc. * (a) 305,800 4,097,720 ------------ 32,642,294 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.30% Avaya, Inc. * (a) 113,100 1,463,514 ------------ TOTAL COMMON STOCK (Cost: $365,327,099) $434,988,992 ------------
PRINCIPAL AMOUNT VALUE --------- ----- SHORT TERM INVESTMENTS - 7.37% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $36,322,557 $ 36,322,557 ------------ REPURCHASE AGREEMENTS - 4.40% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $21,721,483 on 01/02/2004, collateralized by $15,085,000 U.S. Treasury Bonds, 9.250% due 02/15/2016 (valued at $22,156,094, including interest). $21,721,000 $ 21,721,000 ------------ TOTAL INVESTMENT (MID CAP VALUE TRUST) (Cost: $423,370,656) $493,032,549 ============
VALUE TRUST
SHARES VALUE ------ ----- COMMON STOCK - 97.62% ADVERTISING - 2.33% The Interpublic Group of Companies, Inc. 448,910 $ 7,002,996 ------------ AEROSPACE - 3.50% Goodrich Corp. * 354,510 10,525,402 ------------ BANKING - 5.60% National Commerce Financial Corp. 233,760 6,376,973 Sovereign Bancorp, Inc. * 440,190 10,454,512 ------------ 16,831,485 BIOTECHNOLOGY - 2.07% Applera Corp.-Applied Biosystems Group * 300,640 6,226,254 ------------ BUSINESS SERVICES - 16.76% BearingPoint, Inc. * 555,090 5,600,858 Cadence Design Systems, Inc. * 503,570 9,054,189 Convergys Corp. * 480,350 8,386,911 Equifax, Inc. 253,190 6,203,155 Manpower, Inc. 145,250 6,838,370 The BISYS Group, Inc. * 444,150 6,608,952 Valassis Communications, Inc. * 260,960 7,659,176 ------------ 50,351,611 CHEMICALS - 3.92% Hercules, Inc. * 429,700 5,242,340 Lyondell Chemical Company 385,700 6,537,615 ------------ 11,779,955 COSMETICS & TOILETRIES - 2.99% International Flavors & Fragrances, Inc. 257,450 8,990,154 ------------ ELECTRICAL EQUIPMENT - 3.33% Hubbell, Inc., Class B * 226,940 10,008,054 ------------ ELECTRIC UTILITIES - 7.57% Edison International 409,820 8,987,353 Pinnacle West Capital Corp. 148,600 5,946,972 Wisconsin Energy Corp. 233,670 7,816,261 ------------ 22,750,586 FINANCIAL SERVICES - 1.81% A.G. Edwards, Inc. * 129,550 4,693,596 Nelnet, Inc., Class A * 33,600 752,640 ------------ 5,446,236 FOOD & BEVERAGES - 1.94% Hormel Foods Corp. 225,090 5,809,573 ------------ HEALTHCARE PRODUCTS - 3.31% Bausch & Lomb, Inc. * 191,750 9,951,825 ------------ HEALTHCARE SERVICES - 2.33% IMS Health, Inc. 281,580 7,000,079 ------------ HOTELS & RESTAURANTS - 3.80% Starwood Hotels & Resorts Worldwide, Inc. * 111,030 3,993,749 Wendy's International, Inc. 189,170 7,423,031 ------------ 11,416,780 INSURANCE - 14.11% ACE, Ltd. 273,630 11,333,755 Aon Corp. 370,100 8,860,194 Arthur J. Gallagher & Company 194,770 6,328,077 Chubb Corp. 113,660 7,740,246 Horace Mann Educators Corp. 142,200 1,986,534 UNUMProvident Corp. 389,300 6,139,261 ------------ 42,388,067 MEDICAL-HOSPITALS - 2.33% Tenet Healthcare Corp. * 435,940 6,996,837 ------------ OFFICE FURNISHINGS & SUPPLIES - 0.89% Office Depot, Inc. * 160,150 2,676,107 ------------
The accompanying notes are an integral part of the financial statements. 158 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- PAPER - 2.22% Temple-Inland, Inc. 106,450 $ 6,671,221 ------------ PETROLEUM SERVICES - 5.82% GlobalSantaFe Corp. 253,290 6,289,191 Transocean, Inc. * 180,140 4,325,161 Valero Energy Corp. 148,080 6,862,027 ------------ 17,476,379 PHARMACEUTICALS - 3.52% Watson Pharmaceuticals, Inc. * 229,720 10,567,120 ------------ PUBLISHING - 3.34% Reuters Group PLC - ADR 106,200 2,695,356 Scholastic Corp. * 215,440 7,333,578 ------------ 10,028,934 RETAIL TRADE - 1.99% Borders Group, Inc. 273,030 5,984,818 ------------ TRAVEL SERVICES - 2.14% Sabre Holdings Corp. 297,120 6,414,821 ------------ TOTAL COMMON STOCK (Cost: $241,475,816) $293,295,294 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 2.38% Federal National Mortgage Association Discount Note, 0.70% due 01/02/2004 $7,143,000 $ 7,142,861 ------------ TOTAL INVESTMENTS (VALUE TRUST) (Cost: $248,618,677) $300,438,155 ============
ALL CAP VALUE TRUST
SHARES VALUE ------ ----- COMMON STOCK - 91.36% ADVERTISING - 0.57% The Interpublic Group of Companies, Inc. 111,500 $ 1,739,400 ------------ AEROSPACE - 0.29% Woodward Governor Company (a) 15,700 892,231 ------------ AGRICULTURE - 1.48% Archer-Daniels-Midland Company 138,500 2,107,970 Delta & Pine Land Company 54,000 1,371,600 Monsanto Company 34,800 1,001,544 ------------ 4,481,114 AIR TRAVEL - 0.10% Alaska Air Group, Inc. * (a) 10,800 294,732 ------------ ALUMINUM - 1.75% Alcoa, Inc. 140,000 5,320,000 ------------ APPAREL & TEXTILES - 0.96% NIKE, Inc., Class B 42,300 2,895,858 ------------ AUTO PARTS - 2.09% American Axle & Manufacturing Holdings, Inc. * 28,500 1,151,970 BorgWarner, Inc. 19,800 1,684,386 Dana Corp. 80,600 1,479,010 Genuine Parts Company 60,500 2,008,600 ------------ 6,323,966 BANKING - 6.61% Bank of New York Company, Inc. * 30,000 993,600 Bank One Corp. 98,000 4,467,820 Cullen Frost Bankers, Inc. 74,300 3,014,351 Doral Financial Corp. 78,000 2,517,840 FleetBoston Financial Corp. * 16,800 733,320 Wachovia Corp. 92,400 4,304,916 Webster Financial Corp. 9,300 426,498 Wells Fargo & Company 60,500 3,562,845 ------------ 20,021,190 BROADCASTING - 2.66% Clear Channel Communications, Inc. 64,200 3,006,486 Viacom, Inc., Class B 113,800 5,050,444 ------------ 8,056,930 BUILDING MATERIALS & CONSTRUCTION - 0.24% Haemonetics Corp. * 30,100 719,089 ------------ BUSINESS SERVICES - 0.96% AMR Corp. * (a) 8,600 111,370 Cadence Design Systems, Inc. * 82,600 1,485,148 Reynolds & Reynolds Company, Class A * 45,000 1,307,250 ------------ 2,903,768 CABLE AND TELEVISION - 1.28% Comcast Corp.-Special Class A * 124,100 3,881,848 ------------ CHEMICALS - 2.96% E.I. Du Pont De Nemours & Company 45,000 2,065,050 Eastman Chemical Company * 31,000 1,225,430 OM Group, Inc. * (a) 64,200 1,681,398 Praxair, Inc. 70,000 2,674,000 Rohm & Haas Company 31,300 1,336,823 ------------ 8,982,701 COMPUTERS & BUSINESS EQUIPMENT - 3.90% Apple Computer, Inc. * 296,000 6,325,520 Electronics For Imaging, Inc. * (a) 39,500 1,027,790 EMC Corp. * 258,900 3,344,988 Xerox Corp. * 82,200 1,134,360 ------------ 11,832,658 CONSTRUCTION MATERIALS - 0.44% JLG Industries, Inc. * (a) 28,100 427,963 Trinity Industries, Inc. * (a) 29,200 900,528 ------------ 1,328,491 CONTAINERS & GLASS - 0.69% Pactiv Corp. * 87,600 2,093,640 ------------ COSMETICS & TOILETRIES - 0.53% The Gillette Company * 43,500 1,597,755 ------------ CRUDE PETROLEUM & NATURAL GAS - 0.95% Chesapeake Energy Corp. (a) 52,000 706,160
The accompanying notes are an integral part of the financial statements. 159 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- CRUDE PETROLEUM & NATURAL GAS - CONTINUED EOG Resources, Inc. 28,100 $ 1,297,377 Helmerich & Payne, Inc. * 31,400 877,002 ------------ 2,880,539 DOMESTIC OIL - 0.45% Westport Resources Corp. * 46,100 1,376,546 ------------ ELECTRICAL EQUIPMENT - 1.42% C-COR.net Corp. * (a) 54,900 611,037 Emerson Electric Company 22,800 1,476,300 Hubbell, Inc., Class B * 50,600 2,231,460 ------------ 4,318,797 ELECTRIC UTILITIES - 1.02% Ameren Corp. 41,600 1,913,600 CMS Energy Corp. (a) 140,000 1,192,800 ------------ 3,106,400 ELECTRONICS - 2.18% Intermagnetics General Corp. * (a) 19,900 440,984 Rogers Corp. * 15,200 670,624 Technitrol, Inc. 21,100 437,614 Varian, Inc. * 26,600 1,110,018 Vishay Intertechnology, Inc. * 87,800 2,010,620 Zebra Technologies Corp., Class A * 29,000 1,924,730 ------------ 6,594,590 ENERGY - 0.81% Progress Energy, Inc. 54,000 2,444,040 ------------ FINANCIAL SERVICES - 3.81% Citigroup, Inc. 118,400 5,747,136 Mellon Financial Corp. 107,100 3,438,981 Merrill Lynch & Company, Inc. 40,300 2,363,595 ------------ 11,549,712 FOOD & BEVERAGES - 3.72% General Mills, Inc. * 33,500 1,517,550 Kraft Foods, Inc., Class A 100,000 3,222,000 PepsiCo, Inc. 98,100 4,573,422 Smithfield Foods, Inc. * 94,400 1,954,080 ------------ 11,267,052 FOREST PRODUCTS - 0.14% Weyerhaeuser Company * 6,500 416,000 ------------ GAS & PIPELINE UTILITIES - 0.65% Philadelphia Suburban Corp. 89,625 1,980,713 ------------ HEALTHCARE PRODUCTS - 0.95% Bausch & Lomb, Inc. * 47,900 2,486,010 ICU Medical, Inc. * (a) 11,800 404,504 ------------ 2,890,514 HEALTHCARE SERVICES - 0.63% Covance, Inc. * 27,100 726,280 Sierra Health Services, Inc. * (a) 43,300 1,188,585 ------------ 1,914,865 HOTELS & RESTAURANTS - 0.35% Yum! Brands, Inc. * 31,100 1,069,840 ------------ INDUSTRIAL MACHINERY - 4.96% Briggs & Stratton Corp. (a) 27,300 1,840,020 Cummins, Inc. (a) 25,100 1,228,394 Deere & Company * 113,900 7,409,195 Dionex Corp. * 22,900 1,053,858 Grant Prideco, Inc. * 69,700 907,494 IDEX Corp. * 18,400 765,256 W.W. Grainger, Inc. 38,400 1,819,776 ------------ 15,023,993 INDUSTRIALS - 0.52% GrafTech International, Ltd. * 115,800 1,563,300 ------------ INSURANCE - 3.69% American International Group, Inc. 45,000 2,982,600 Markel Corp. * (a) 7,200 1,825,272 Odyssey Re Holdings Corp. (a) 80,000 1,804,000 SAFECO Corp. * 39,800 1,549,414 Travelers Property Casualty Corp., Class B 35,000 593,950 XL Capital, Ltd., Class A 31,200 2,419,560 ------------ 11,174,796 LEISURE TIME - 2.12% The Walt Disney Company * 275,000 6,415,750 ------------ LIFE SCIENCES - 0.11% Pharmaceutical Product Development, Inc. * 12,100 326,337 ------------ MANUFACTURING - 3.62% 3M Company 10,800 918,324 Eaton Corp. 34,500 3,725,310 Illinois Tool Works, Inc. 21,300 1,787,283 Tyco International, Ltd. * 171,600 4,547,400 ------------ 10,978,317 MEDICAL-HOSPITALS - 0.49% Manor Care, Inc. 42,800 1,479,596 ------------ METAL & METAL PRODUCTS - 1.77% Mueller Industry, Inc. * (a) 18,000 618,480 Quanex Corp. 56,600 2,609,260 Timken Company 106,600 2,138,396 ------------ 5,366,136 MINING - 2.42% Newmont Mining Corp. 106,200 5,162,382 Potash Corporation of Saskatchewan, Inc. * 25,200 2,179,296 ------------ 7,341,678 NEWSPAPERS - 0.25% Journal Register Company * 37,200 770,040 ------------ PAPER - 2.69% Georgia-Pacific Corp. 100,000 3,067,000 International Paper Company 72,000 3,103,920 MeadWestvaco Corp. 66,600 1,981,350 ------------ 8,152,270 PETROLEUM SERVICES - 7.15% Baker Hughes, Inc. 30,600 984,096 ChevronTexaco Corp. 14,762 1,275,289 Exxon Mobil Corp. 323,100 13,247,100
The accompanying notes are an integral part of the financial statements. 160 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- PETROLEUM SERVICES - CONTINUED GlobalSantaFe Corp. 22,500 $ 558,675 Grey Wolf, Inc. * (a) 283,500 1,060,290 Halliburton Company 44,800 1,164,800 Pride International, Inc. * 83,500 1,556,440 Schlumberger, Ltd. * 33,100 1,811,232 ------------ 21,657,922 PHARMACEUTICALS - 4.98% Abbott Laboratories 30,000 1,398,000 King Pharmaceuticals, Inc. * 17,100 260,946 Merck & Company, Inc. 51,200 2,365,440 Mylan Laboratories, Inc. 13,650 344,799 Novartis AG, ADR 74,200 3,405,038 Schering-Plough Corp. 220,000 3,825,800 Wyeth 82,600 3,506,370 ------------ 15,106,393 PUBLISHING - 1.33% Tribune Company 78,400 4,045,440 ------------ RAILROADS & EQUIPMENT - 1.02% CSX Corp. 85,700 3,080,058 ------------ REAL ESTATE - 0.42% Host Marriott Corp., REIT * 103,000 1,268,960 ------------ RETAIL TRADE - 3.40% Barnes & Noble, Inc. * 45,600 1,497,960 Foot Locker, Inc. 5,500 128,975 J.C. Penney Company, Inc. * 49,800 1,308,744 Limited Brands, Inc. 140,000 2,524,200 Pier 1 Imports, Inc. 99,000 2,164,140 Target Corp. 35,000 1,344,000 The Yankee Candle, Inc. * 48,500 1,325,505 ------------ 10,293,524 SANITARY SERVICES - 0.41% Waste Management, Inc. 42,300 1,252,080 ------------ SOFTWARE - 0.18% Take-Two Interactive Software, Inc. * (a) 19,100 550,271 ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - 2.54% Arris Group, Inc. * (a) 33,100 239,644 Motorola, Inc. * 380,000 5,346,600 SBC Communications, Inc. 80,600 2,101,242 ------------ 7,687,486 TELEPHONE - 2.23% Verizon Communications, Inc. * 192,500 6,752,900 ------------ TOYS, AMUSEMENTS & SPORTING GOODS - 0.47% Hasbro, Inc. * 67,000 1,425,760 ------------ TOTAL COMMON STOCK (Cost: $233,416,608) $276,887,986 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 4.58% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $13,8815,067 $ 13,885,067 ------------ REPURCHASE AGREEMENTS - 4.06% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $12,314,274 on 01/02/2004, collateralized by $9,800,000 U.S. Treasury Bonds, 7.500% due 11/15/2016 (valued at $12,561,846, including interest). $12,314,000 $ 12,314,000 ------------ TOTAL INVESTMENTS (ALL CAP VALUE TRUST) (Cost: $259,615,675) $303,087,053 ============
EQUITY INDEX TRUST
SHARES VALUE ------ ----- COMMON STOCK - 95.47% ADVERTISING - 0.24% Monster Worldwide, Inc. * 857 $ 18,820 Omnicom Group, Inc. * 1,444 126,104 The Interpublic Group of Companies, Inc. 3,152 49,171 ------------ 194,095 AEROSPACE - 1.82% General Dynamics Corp. 1,503 135,856 Goodrich Corp. * 894 26,543 Honeywell International, Inc. 6,554 219,100 Lockheed Martin Corp. 3,428 176,199 Northrop Grumman Corp. 1,392 133,075 Raytheon Company * 3,164 95,047 Rockwell Collins, Inc. 1,346 40,420 Textron, Inc. * 1,034 59,000 The Boeing Company * 6,396 269,528 United Technologies Corp. 3,577 338,992 ------------ 1,493,760 AGRICULTURE - 0.16% Archer-Daniels-Midland Company 4,916 74,821 Monsanto Company 1,992 57,330 ------------ 132,151 AIR TRAVEL - 0.13% Delta Air Lines, Inc. * 939 11,089 Southwest Airlines Company * 5,985 96,598 ------------ 107,687 ALUMINUM - 0.30% Alcoa, Inc. 6,579 250,002 ------------ APPAREL & TEXTILES - 0.39% Cintas Corp. 1,298 65,069 Jones Apparel Group, Inc. 960 33,821 Liz Claiborne, Inc. 830 29,432 NIKE, Inc., Class B 1,995 136,578 Reebok International, Ltd. 448 17,615 V.F. Corp. 822 35,543 ------------ 318,058
The accompanying notes are an integral part of the financial statements. 161 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- AUTO PARTS - 0.21% AutoZone, Inc. * 675 $ 57,517 Dana Corp. 1,130 20,735 Delphi Corp. * 4,260 43,495 Genuine Parts Company 1,323 43,924 Visteon Corp. 994 10,347 ------------ 176,018 AUTO SERVICES - 0.05% AutoNation, Inc. * 2,091 38,412 ------------ AUTOMOBILES - 0.64% Ford Motor Company * 13,921 222,736 General Motors Corp. (a) 4,263 227,644 PACCAR, Inc. 887 75,502 ------------ 525,882 BANKING - 6.13% AmSouth BanCorp 2,669 65,391 Bank of America Corp. 11,296 908,537 Bank of New York Company, Inc. * 5,881 194,779 Bank One Corp. 8,499 387,469 BB&T Corp. 4,156 160,588 Comerica, Inc. 1,333 74,728 Fifth Third Bancorp 4,326 255,667 First Tennessee National Corp. 954 42,071 FleetBoston Financial Corp. * 8,017 349,942 Golden West Financial Corp. 1,155 119,184 Huntington Bancshares, Inc. 1,740 39,150 KeyCorp 3,187 93,443 Marshall & Ilsley Corp. 1,721 65,828 National City Corp. 4,622 156,871 North Fork BanCorp, Inc. 1,153 46,662 Northern Trust Corp. 1,675 77,753 Southtrust Corp. 2,523 82,578 SunTrust Banks, Inc. 2,140 153,010 Union Planters Corp. 1,434 45,157 US Bancorp 14,663 436,664 Wachovia Corp. 10,064 468,882 Wells Fargo & Company 12,864 757,561 Zions BanCorp 683 41,888 ------------ 5,023,803 BIOTECHNOLOGY - 1.17% Amgen, Inc. * 9,807 606,073 Applera Corp.-Applied Biosystems Group * 1,582 32,763 Biogen Idec, Inc. * 2,491 91,619 Chiron Corp. * 1,427 81,325 Genzyme Corp. * 1,704 84,075 MedImmune, Inc. * 1,882 47,803 Millipore Corp. * 371 15,971 ------------ 959,629 BROADCASTING - 1.11% Clear Channel Communications, Inc. 4,680 219,164 Univision Communications, Inc., Class A * 2,452 97,320 Viacom, Inc., Class B 13,299 590,210 ------------ 906,694 BUILDING MATERIALS & CONSTRUCTION - 0.19% American Standard Companies, Inc. * 554 55,788 Masco Corp. 3,521 96,510 ------------ 152,298 BUSINESS SERVICES - 1.84% Automatic Data Processing, Inc. 4,519 178,998 BMC Software, Inc. * 1,720 32,078 Cendant Corp. * 7,703 171,546 Charles Schwab Corp. 10,314 122,118 Computer Sciences Corp. * 1,424 62,984 Concord EFS, Inc. * 3,536 52,474 Convergys Corp. * 1,088 18,996 Deluxe Corp. 384 15,871 Electronic Data Systems Corp. 3,652 89,620 Equifax, Inc. 1,057 25,896 First Data Corp. * 5,541 227,680 Fiserv, Inc. * 1,473 58,198 Fluor Corp. * 624 24,735 Moody's Corp. 1,131 68,482 NCR Corp. * 719 27,897 Paychex, Inc. 2,866 106,615 Pitney Bowes, Inc. 1,776 72,141 R.R. Donnelley & Sons Company 864 26,050 Robert Half International, Inc. * 1,302 30,389 SunGuard Data Systems, Inc. * 2,184 60,519 Unisys Corp. * 2,512 37,303 ------------ 1,510,590 CABLE AND TELEVISION - 1.44% Comcast Corp., Class A * 17,113 562,505 Time Warner, Inc. * 34,377 618,442 ------------ 1,180,947 CELLULAR COMMUNICATIONS - 0.54% AT&T Wireless Services, Inc. * 20,637 164,890 Nextel Communications, Inc., Class A * 8,359 234,553 Sprint Corp. (PCS Group) * 7,869 44,224 ------------ 443,667 CHEMICALS - 1.35% Air Products & Chemicals, Inc. 1,728 91,290 Ashland, Inc. 522 22,999 Dow Chemical Company * 6,998 290,907 E.I. Du Pont De Nemours & Company 7,578 347,755 Eastman Chemical Company * 588 23,244 Engelhard Corp. 954 28,572 Great Lakes Chemical Corp. 385 10,468 Hercules, Inc. * 843 10,285 PPG Industries, Inc. 1,292 82,714 Praxair, Inc. 2,472 94,430 Rohm & Haas Company 1,693 72,308 Sigma-Aldrich Corp. 527 30,134 ------------ 1,105,106 COLLEGES & UNIVERSITIES - 0.11% Apollo Group, Inc., Class A * 1,341 91,188 ------------ COMPUTERS & BUSINESS EQUIPMENT - 3.71% Apple Computer, Inc. * 2,756 58,896 Dell, Inc. * 19,466 661,065 EMC Corp. * 18,270 236,048 Gateway, Inc. * 2,466 11,344 Hewlett-Packard Company * 23,181 532,468 International Business Machines Corp. 13,080 1,212,254 Lexmark International, Inc. * 977 76,831 Network Appliance, Inc. * 2,623 53,850 Sun Microsystems, Inc. * 24,836 111,514 Xerox Corp. * 6,020 83,076 ------------ 3,037,346
The accompanying notes are an integral part of the financial statements. 162 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- CONSTRUCTION MATERIALS - 0.09% Sherwin-Williams Company 1,108 $ 38,492 Vulcan Materials Company 773 36,772 ------------ 75,264 CONSTRUCTION & MINING EQUIPMENT - 0.02% Rowan Companies, Inc. * 715 16,567 ------------ CONTAINERS & GLASS - 0.13% Ball Corp. 428 25,496 Bemis Company, Inc. 404 20,200 Pactiv Corp. * 1,195 28,561 Sealed Air Corp. * 646 34,974 ------------ 109,231 COSMETICS & TOILETRIES - 2.29% Alberto Culver Company, Class B 447 28,197 Avon Products, Inc. 1,798 121,347 Colgate-Palmolive Company 4,084 204,404 International Flavors & Fragrances, Inc. 712 24,863 Kimberly-Clark Corp. 3,835 226,610 The Gillette Company * 7,692 282,527 The Procter & Gamble Company 9,858 984,617 ------------ 1,872,565 CRUDE PETROLEUM & NATURAL GAS - 0.70% Anadarko Petroleum Corp. 1,907 97,276 Apache Corp. 1,232 99,915 Burlington Resources, Inc. 1,510 83,624 Devon Energy Corp. 1,768 101,235 EOG Resources, Inc. 875 40,399 Occidental Petroleum Corp. * 2,928 123,679 Sunoco, Inc. 587 30,025 ------------ 576,153 DOMESTIC OIL - 0.27% Amerada Hess Corp. * 683 36,315 Kerr-McGee Corp. * 767 35,658 Marathon Oil Corp. 2,359 78,060 Unocal Corp. * 1,969 72,518 ------------ 222,551 ELECTRICAL EQUIPMENT - 3.46% American Power Conversion Corp. 1,509 36,895 Cooper Industries, Ltd., Class A * 710 41,130 Emerson Electric Company 3,199 207,135 General Electric Company 76,336 2,364,889 Johnson Controls, Inc. * 687 79,775 Molex, Inc. * 1,447 50,486 Power-One, Inc. * 633 6,856 Symbol Technologies, Inc. 1,753 29,608 Tektronix, Inc. 643 20,319 ------------ 2,837,093 ELECTRIC UTILITIES - 2.15% Allegheny Energy, Inc. * 965 12,313 Ameren Corp. 1,235 56,810 American Electric Power, Inc. 3,003 91,621 CenterPoint Energy, Inc. 2,327 22,549 Cinergy Corp. 1,354 52,549 CMS Energy Corp. 1,225 10,437 Consolidated Edison, Inc. 1,714 73,719 Constellation Energy Group, Inc. 1,272 49,811 Dominion Resources, Inc. 2,466 157,405 DTE Energy Company * 1,280 50,432 Duke Energy Corp. * 6,900 141,105 Edison International 2,477 54,321 Entergy Corp. 1,740 99,406 Exelon Corp. 2,486 164,971 FirstEnergy Corp. 2,508 88,282 FPL Group, Inc. 1,398 91,457 PG&E Corp. * 3,153 87,559 Pinnacle West Capital Corp. 694 27,774 PPL Corp. 1,348 58,975 Public Service Enterprise Group, Inc. 1,788 78,314 TECO Energy, Inc. (a) 1,428 20,577 The AES Corp. * 4,734 44,689 The Southern Company 5,567 168,402 TXU Corp. * 2,462 58,399 ------------ 1,761,877 ELECTRONICS - 0.34% Agilent Technologies, Inc. * 3,615 105,702 Jabil Circuit, Inc. * 1,519 42,988 Sanmina-SCI Corp. * 3,933 49,595 Solectron Corp. * 6,356 37,564 Thermo Electron Corp. * 1,238 31,198 Thomas & Betts Corp. 444 10,163 ------------ 277,210 ENERGY - 0.25% Calpine Corp. * (a) 3,141 15,108 Progress Energy, Inc. 1,863 84,320 Sempra Energy * 1,720 51,703 Xcel Energy, Inc. * 3,032 51,483 ------------ 202,614 FINANCIAL SERVICES - 8.63% American Express Company 9,779 471,641 Bear Stearns Companies, Inc. 745 59,563 Capital One Financial Corp. 1,756 107,625 Charter One Financial, Inc. 1,693 58,493 Citigroup, Inc. 39,219 1,903,690 Countrywide Financial Corp. 1,764 133,774 Federal Home Loan Mortgage Corp. 5,289 308,455 Federal National Mortgage Association 7,387 554,468 Federated Investors, Inc., Class B 826 24,251 Franklin Resources, Inc. 1,908 99,331 H & R Block, Inc. 1,355 75,026 J.P. Morgan Chase & Company * 15,511 569,719 Janus Capital Group, Inc. 1,830 30,030 Lehman Brothers Holdings, Inc. 2,064 159,382 MBIA, Inc. 1,096 64,916 MBNA Corp. 9,714 241,393 Mellon Financial Corp. 3,271 105,032 Merrill Lynch & Company, Inc. 7,187 421,518 Morgan Stanley 8,234 476,502 PNC Financial Services Group 2,108 115,371 Providian Financial Corp. * 2,206 25,678 Regions Financial Corp. 1,689 62,831 SLM Corp. 3,427 129,129 State Street Corp. (b) 2,541 132,335 Synovus Financial Corp. 2,294 66,343 T. Rowe Price Group, Inc. (c) 947 44,897 The Goldman Sachs Group, Inc. 3,600 355,428 Washington Mutual, Inc. 6,837 274,300 ------------ 7,071,121
The accompanying notes are an integral part of the financial statements. 163 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- FOOD & BEVERAGES - 3.63% Anheuser-Busch Companies, Inc. 6,194 $ 326,300 Campbell Soup Company * 3,120 83,616 Coca-Cola Enterprises, Inc. 3,458 75,626 ConAgra Foods, Inc. 4,082 107,724 General Mills, Inc. * 2,839 128,607 H.J. Heinz Company 2,675 97,450 Hershey Foods Corp. 989 76,143 Kellogg Company 3,103 118,162 McCormick & Company, Inc. 1,055 31,756 PepsiCo, Inc. 13,052 608,484 Sara Lee Corp. * 6,008 130,434 Starbucks Corp. * 2,973 98,287 The Coca-Cola Company 18,638 945,878 The Pepsi Bottling Group, Inc. * 1,998 48,312 William Wrigley Jr. Company 1,709 96,063 ------------ 2,972,842 FOREST PRODUCTS - 0.13% Weyerhaeuser Company * 1,671 106,944 ------------ FURNITURE & FIXTURES - 0.04% Leggett & Platt, Inc. 1,459 31,558 ------------ GAS & PIPELINE UTILITIES - 0.31% Dynegy, Inc., Class A (a) 2,866 12,267 El Paso Corp. 4,624 37,871 KeySpan Corp. * 1,209 44,491 Kinder Morgan, Inc. 937 55,377 Nicor, Inc. 335 11,403 NiSource, Inc. 1,995 43,770 Peoples Energy Corp. 280 11,771 Williams Companies, Inc. 3,940 38,691 ------------ 255,641 HEALTHCARE PRODUCTS - 3.25% Bausch & Lomb, Inc. * 399 20,708 Baxter International, Inc. * 4,640 141,613 Becton Dickinson & Company 1,931 79,442 Biomet, Inc. 1,944 70,781 Boston Scientific Corp. * 6,228 228,941 C.R. Bard, Inc. 394 32,013 Guidant Corp. 2,296 138,219 Johnson & Johnson 22,565 1,165,708 Medtronic, Inc. 9,215 447,941 St. Jude Medical, Inc. * 1,312 80,491 Stryker Corp. 1,517 128,960 Zimmer Holdings, Inc. * 1,838 129,395 ------------ 2,664,212 HEALTHCARE SERVICES - 1.03% Express Scripts, Inc. * 597 39,659 HCA, Inc. * 3,767 161,830 Humana, Inc. * 1,225 27,991 IMS Health, Inc. 1,820 45,245 McKesson Corp. * 2,215 71,234 Medco Health Solutions, Inc. * 2,055 69,849 Quest Diagnostics, Inc. 790 57,757 UnitedHealth Group, Inc. 4,460 259,483 Wellpoint Health Networks, Inc., Class A * 1,155 112,024 ------------ 845,072 HOMEBUILDERS - 0.15% Centex Corp. * 473 50,918 KB HOME 352 25,527 Pulte Homes, Inc. * 472 44,189 ------------ 120,634 HOTELS & RESTAURANTS - 0.74% Darden Restaurants, Inc. 1,253 26,363 Harrah's Entertainment, Inc. 840 41,807 Hilton Hotels Corp. 2,884 49,403 Marriott International, Inc., Class A 1,758 81,219 McDonald's Corp. 9,649 239,585 Starwood Hotels & Resorts Worldwide, Inc. * 1,538 55,322 Wendy's International, Inc. 866 33,982 Yum! Brands, Inc. * 2,236 76,918 ------------ 604,599 HOUSEHOLD APPLIANCES - 0.13% Black & Decker Corp. 591 29,148 Maytag Corp. 597 16,626 The Stanley Works 616 23,328 Whirlpool Corp. 530 38,505 ------------ 107,607 HOUSEHOLD PRODUCTS - 0.26% Fortune Brands, Inc. 1,109 79,283 Newell Rubbermaid, Inc. 2,086 47,498 The Clorox Company 1,604 77,890 Tupperware Corp. * 444 7,699 ------------ 212,370 INDUSTRIAL MACHINERY - 0.82% Caterpillar, Inc. 2,640 219,173 Cummins, Inc. 322 15,759 Deere & Company * 1,825 118,716 Dover Corp. 1,540 61,215 Ingersoll-Rand Company, Class A 1,319 89,534 ITT Industries, Inc. 701 52,021 Pall Corp. 950 25,488 Parker-Hannifin Corp. 901 53,609 W.W. Grainger, Inc. 694 32,889 ------------ 668,404 INDUSTRIALS - 0.08% Crane Company 452 13,895 Rockwell Automation, Inc. 1,417 50,445 ------------ 64,340 INSURANCE - 4.71% ACE, Ltd. 2,122 87,893 Aetna, Inc. 1,160 78,393 AFLAC, Inc. 3,899 141,066 Ambac Financial Group, Inc. 812 56,345 American International Group, Inc. 19,827 1,314,133 Anthem, Inc. * 1,051 78,825 Aon Corp. 2,384 57,073 Chubb Corp. 1,428 97,247 CIGNA Corp. * 1,068 61,410 Cincinnati Financial Corp. 1,220 51,094 Hartford Financial Services Group, Inc. 2,151 126,973 Jefferson-Pilot Corp. 1,072 54,297 John Hancock Financial Services, Inc. 2,199 82,462 Lincoln National Corp. 1,353 54,621 Loews Corp. 1,410 69,724 Marsh & McLennan Companies, Inc. 4,031 193,045
The accompanying notes are an integral part of the financial statements. 164 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- INSURANCE - CONTINUED MetLife, Inc. 5,779 $ 194,579 MGIC Investment Corp. 748 42,591 Principal Financial Group, Inc. 2,455 81,187 Progressive Corp. 1,642 137,255 Prudential Financial, Inc. 4,109 171,633 SAFECO Corp. * 1,053 40,993 The Allstate Corp. 5,349 230,114 The St. Paul Companies, Inc. * 1,735 68,793 Torchmark, Inc. (a) 860 39,164 Travelers Property Casualty Corp., Class B 7,639 129,634 UNUMProvident Corp. 2,251 35,498 XL Capital, Ltd., Class A 1,044 80,962 ------------ 3,857,004 INTERNATIONAL OIL - 0.41% ConocoPhillips 5,176 339,390 ------------ INTERNET CONTENT - 0.28% Yahoo!, Inc. * 4,997 225,714 ------------ INTERNET RETAIL - 0.39% eBay, Inc. * 4,911 317,201 ------------ INTERNET SOFTWARE - 1.65% Cisco Systems, Inc. * 52,483 1,274,812 Symantec Corp. * 2,342 81,150 ------------ 1,355,962 LEISURE TIME - 0.82% Brunswick Corp. 696 22,154 Carnival Corp. 4,789 190,267 International Game Technology 2,632 93,962 The Walt Disney Company * 15,550 362,782 ------------ 669,165 LIFE SCIENCES - 0.06% PerkinElmer, Inc. * 964 16,455 Waters Corp. * 923 30,607 ------------ 47,062 LIQUOR - 0.07% Adolph Coors Company, Class B 277 15,540 Brown Forman Corp., Class B 461 43,080 ------------ 58,620 MANUFACTURING - 1.58% 3M Company 5,967 507,374 Danaher Corp. * 1,167 107,072 Eaton Corp. 578 62,413 Illinois Tool Works, Inc. 2,343 196,601 Snap-on, Inc. 443 14,282 Tyco International, Ltd. * 15,198 402,747 ------------ 1,290,489 MEDICAL-HOSPITALS - 0.15% Health Management Associates, Inc., Class A 1,823 43,752 Manor Care, Inc. 678 23,438 Tenet Healthcare Corp. * 3,534 56,721 ------------ 123,911 MINING - 0.32% Freeport-McMoRan Copper & Gold, Inc., Class B * 1,299 54,727 Newmont Mining Corp. 3,285 159,684 Phelps Dodge Corp. 679 51,665 ------------ 266,076 NEWSPAPERS - 0.09% Dow Jones & Company, Inc. 620 30,907 Knight-Ridder, Inc. 607 46,964 ------------ 77,871 OFFICE FURNISHINGS & SUPPLIES - 0.23% Avery Dennison Corp. 840 47,057 Office Depot, Inc. * 2,381 39,787 Staples, Inc. * 3,764 102,757 ------------ 189,601 PAPER - 0.45% Boise Cascade Corp. * 657 21,589 Georgia-Pacific Corp. 1,932 59,254 International Paper Company 3,653 157,481 Louisiana-Pacific Corp. * 805 14,393 MeadWestvaco Corp. 1,525 45,369 Plum Creek Timber Company, Inc. 1,391 42,356 Temple-Inland, Inc. 413 25,883 ------------ 366,325 PETROLEUM SERVICES - 4.10% Baker Hughes, Inc. 2,546 81,879 BJ Services Company * 1,203 43,188 ChevronTexaco Corp. 8,127 702,092 Exxon Mobil Corp. 50,251 2,060,291 Halliburton Company 3,330 86,580 Nabors Industries, Ltd. * 1,114 46,231 Noble Corp. * 1,017 36,388 Schlumberger, Ltd. * 4,451 243,559 Transocean, Inc. * 2,432 58,392 ------------ 3,358,600 PHARMACEUTICALS - 6.83% Abbott Laboratories 11,885 553,841 Allergan, Inc. 992 76,195 AmerisourceBergen Corp. 851 47,784 Bristol-Myers Squibb Company * 14,743 421,650 Cardinal Health, Inc. 3,291 201,278 Eli Lilly & Company 8,537 600,407 Forest Laboratories, Inc. * 2,780 171,804 King Pharmaceuticals, Inc. * 1,833 27,972 Merck & Company, Inc. 16,916 781,519 Pfizer, Inc. 58,019 2,049,811 Schering-Plough Corp. 11,171 194,264 Watson Pharmaceuticals, Inc. * 821 37,766 Wyeth 10,125 429,806 ------------ 5,594,097 PHOTOGRAPHY - 0.07% Eastman Kodak Company 2,179 55,935 ------------ PUBLISHING - 0.60% American Greetings Corp., Class A * 505 11,044 Gannett Company, Inc. 2,061 183,759 McGraw-Hill Companies, Inc. 1,457 101,874 Meredith Corp. 381 18,597 The New York Times Company, Class A 1,132 54,098 Tribune Company 2,374 122,498 ------------ 491,870
The accompanying notes are an integral part of the financial statements. 165 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- RAILROADS & EQUIPMENT - 0.43% Burlington Northern Santa Fe Corp. 2,822 $ 91,292 CSX Corp. 1,627 58,474 Norfolk Southern Corp. 2,968 70,193 Union Pacific Corp. 1,940 134,791 ------------ 354,750 REAL ESTATE - 0.35% Apartment Investment & Management Company, Class A, REIT 716 24,702 Equity Office Properties Trust, REIT 3,039 87,067 Equity Residential, REIT * 2,094 61,794 ProLogis, REIT 1,368 43,899 Simon Property Group, Inc., REIT 1,454 67,379 ------------ 284,841 RETAIL GROCERY - 0.57% Albertsons, Inc. * 2,790 63,194 Safeway, Inc. * 3,363 73,683 SUPERVALU, Inc. 1,019 29,133 Sysco Corp. 4,920 183,172 The Kroger Company * 5,665 104,859 Winn-Dixie Stores, Inc. (a) 1,077 10,716 ------------ 464,757 RETAIL TRADE - 5.70% Bed Bath & Beyond, Inc. * 2,251 97,581 Best Buy Company, Inc. 2,460 128,510 Big Lots, Inc. * 889 12,633 Circuit City Stores-Circuit City Group * 1,592 16,127 Costco Wholesale Corp. * 3,480 129,386 CVS Corp. 3,003 108,468 Dillard's, Inc., Class A * 633 10,419 Dollar General Corp. 2,562 53,776 Family Dollar Stores, Inc. 1,311 47,039 Federated Department Stores, Inc. 1,374 64,757 Home Depot, Inc. 17,297 613,871 J.C. Penney Company, Inc. * 2,076 54,557 Kohl's Corp. * 2,585 116,170 Limited Brands, Inc. 3,928 70,822 Lowe's Companies, Inc. 5,978 331,121 May Department Stores Company 2,194 63,780 Nordstrom, Inc. 1,045 35,843 RadioShack Corp. 1,248 38,289 Sears, Roebuck & Company * 1,930 87,796 Target Corp. 6,929 266,074 The Gap, Inc. * 6,811 158,083 The TJX Companies, Inc. 3,826 84,363 Tiffany & Company 1,115 50,398 Wal-Mart Stores, Inc. 32,902 1,745,451 Walgreen Company 7,794 283,546 ------------ 4,668,860 SANITARY SERVICES - 0.25% Allied Waste Industries, Inc. * 1,594 22,124 Ecolab, Inc. 1,959 53,618 Waste Management, Inc. 4,428 131,069 ------------ 206,811 SEMICONDUCTORS - 4.06% Advanced Micro Devices, Inc. * 2,650 39,485 Altera Corp. * 2,879 65,353 Analog Devices, Inc. 2,792 127,455 Applied Materials, Inc. * 12,644 283,858 Applied Micro Circuits Corp. * 2,334 13,957 Broadcom Corp., Class A * 2,302 78,475 Intel Corp. 49,660 1,599,052 KLA-Tencor Corp. * 1,480 86,832 Linear Technology Corp. 2,375 99,916 LSI Logic Corp. * 2,882 25,563 Maxim Integrated Products, Inc. 2,498 124,400 Micron Technology, Inc. * 4,642 62,528 National Semiconductor Corp. * 1,409 55,529 Novellus Systems, Inc. * 1,158 48,694 NVIDIA Corp. * (a) 1,233 28,667 PMC-Sierra, Inc. * (a) 1,313 26,457 QLogic Corp. * 718 37,049 Teradyne, Inc. * 1,455 37,030 Texas Instruments, Inc. 13,157 386,553 Xilinx, Inc. * 2,603 100,840 ------------ 3,327,693 SOFTWARE - 4.32% Adobe Systems, Inc. 1,779 69,915 Autodesk, Inc. * 848 20,844 Citrix Systems, Inc. * 1,248 26,470 Computer Associates International, Inc. * 4,402 120,351 Compuware Corp. * 2,920 17,637 Electronic Arts, Inc. * 2,265 108,222 Intuit, Inc. * 1,509 79,841 Mercury Interactive Corp. * 684 33,270 Microsoft Corp. 82,202 2,263,843 Novell, Inc. * 2,839 29,866 Oracle Corp. * 39,736 524,515 Parametric Technology Corp. * 2,024 7,974 PeopleSoft, Inc. * 2,850 64,980 Siebel Systems, Inc. * 3,770 52,290 VERITAS Software Corp. * 3,251 120,807 ------------ 3,540,825 STEEL - 0.10% Allegheny Technologies, Inc. 613 8,104 Nucor Corp. 595 33,320 United States Steel Corp. 785 27,491 Worthington Industries, Inc. 655 11,809 ------------ 80,724 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 2.05% ADC Telecommunications, Inc. * 6,119 18,173 Andrew Corp. * 1,167 13,432 Avaya, Inc. * 3,168 40,994 CIENA Corp. * 3,602 23,917 Citizens Communications Company * 2,162 26,852 Comverse Technology, Inc. * 1,466 25,787 Corning, Inc. * 10,109 105,437 JDS Uniphase Corp. * 10,909 39,818 Lucent Technologies, Inc. * (a) 31,882 90,545 Motorola, Inc. * 17,697 248,997 QUALCOMM, Inc. 6,083 328,056 SBC Communications, Inc. 25,169 656,156 Scientific-Atlanta, Inc. 1,154 31,504 Tellabs, Inc. * 3,172 26,740 ------------ 1,676,408 TELEPHONE - 1.92% ALLTEL Corp. 2,373 110,534 AT&T Corp. 6,005 121,901 BellSouth Corp. 14,050 397,615 CenturyTel, Inc. 1,096 35,752
The accompanying notes are an integral part of the financial statements. 166 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- TELEPHONE - CONTINUED Qwest Communications International, Inc. * 13,444 $ 58,078 Sprint Corp. (FON Group) 6,872 112,838 Verizon Communications, Inc. * 20,995 736,505 ------------ 1,573,223 TIRES & RUBBER - 0.03% Cooper Tire & Rubber Company 561 11,994 Goodyear Tire & Rubber Company * (a) 1,333 10,478 ------------ 22,472 TOBACCO - 1.13% Altria Group, Inc. 15,442 840,354 R.J. Reynolds Tobacco Holdings, Inc. * (a) 643 37,390 UST, Inc. 1,261 45,005 ------------ 922,749 TOYS, AMUSEMENTS & SPORTING GOODS - 0.14% Hasbro, Inc. * 1,327 28,239 Mattel, Inc. 3,268 62,974 Toys R Us, Inc. * 1,623 20,515 ------------ 111,728 TRANSPORTATION - 0.13% Harley-Davidson, Inc. 2,303 109,462 ------------ TRAVEL SERVICES - 0.03% Sabre Holdings Corp. 1,091 23,555 ------------ TRUCKING & FREIGHT - 1.02% Fedex Corp. 2,268 153,090 Navistar International Corp. * 522 24,999 Ryder Systems, Inc. 488 16,665 United Parcel Service, Inc., Class B 8,547 637,179 ------------ 831,933 TOTAL COMMON STOCK (Cost: $86,039,029) $ 78,209,486 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 0.89% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 533,071 $ 533,071 United States Treasury Bills 0.80% due 01/22/2004 **** 200,000 199,910 ------------ $ 732,981 REPURCHASE AGREEMENTS - 3.64% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at $2,982,116 on 01/02/2004, collateralized by $2,130,000 U.S. Treasury Bonds, 8.50% due 02/15/2020 (valued at $3,041,906, including interest). $2,982,000 $ 2,982,000 ------------ TOTAL INVESTMENTS (EQUITY INDEX TRUST) (Cost: $89,754,010) $ 81,924,467 ============
FUNDAMENTAL VALUE TRUST
SHARES VALUE ------ ----- COMMON STOCK - 89.41% AUTO PARTS - 0.47% AutoZone, Inc. * 31,900 $ 2,718,199 ------------ BANKING - 12.20% Bank One Corp. 423,500 19,307,365 Fifth Third Bancorp 121,400 7,174,740 Golden West Financial Corp. 168,900 17,428,791 Lloyds TSB Group PLC, ADR (a) 153,900 5,009,445 Wells Fargo & Company 356,000 20,964,840 ------------ 69,885,181 BUSINESS SERVICES - 2.40% Dun & Bradstreet Corp. * 99,400 5,040,574 Moody's Corp. 109,400 6,624,170 WPP Group PLC, ADR (a) 42,000 2,064,300 ------------ 13,729,044 COMPUTERS & BUSINESS EQUIPMENT - 1.58% Lexmark International, Inc. * 114,900 9,035,736 ------------ CONSTRUCTION MATERIALS - 1.47% Martin Marietta Materials, Inc. 88,900 4,175,633 Vulcan Materials Company (a) 89,200 4,243,244 ------------ 8,418,877 CONTAINERS & GLASS - 3.42% Sealed Air Corp. * 362,100 19,604,094 ------------ CRUDE PETROLEUM & NATURAL GAS - 3.74% Devon Energy Corp. 179,500 10,278,170 EOG Resources, Inc. 127,400 5,882,058 Occidental Petroleum Corp. * 124,300 5,250,432 ------------ 21,410,660 DRUGS & HEALTH CARE - 0.50% Novartis AG-Reg Shares * 63,600 2,886,236 ------------ FINANCIAL SERVICES - 14.26% American Express Company, 848,100 40,903,863 Citigroup, Inc. 450,600 21,872,124 H & R Block, Inc. 116,700 6,461,679 Janus Capital Group, Inc. 83,800 1,375,158 Morgan Stanley 106,600 6,168,942 Providian Financial Corp. * 22,800 265,392 State Street Corp. (b) 32,100 1,671,768 Takefuji Corp. * 63,300 2,960,125 ------------ 81,679,051 FOOD & BEVERAGES - 3.38% Diageo PLC, ADR (a) 167,600 8,859,336 Heineken Holding NV * 73,100 2,498,737 Hershey Foods Corp. 63,300 4,873,467 Kraft Foods, Inc., Class A 96,500 3,109,230 ------------ 19,340,770 HEALTHCARE SERVICES - 0.96% HCA, Inc. * 128,100 5,503,176 ------------ HOLDINGS COMPANIES/CONGLOMERATES - 7.90% Berkshire Hathaway, Inc., Class A * 285 24,011,250 HSBC Holdings PLC * 1,356,559 21,261,010 ------------ 45,272,260
The accompanying notes are an integral part of the financial statements. 167 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- HOTELS & RESTAURANTS - 0.77% Marriott International, Inc., Class A 95,600 $ 4,416,720 ------------ INSURANCE - 13.66% American International Group, Inc. 478,500 31,714,980 Aon Corp. 201,600 4,826,304 Chubb Corp. 28,300 1,927,230 Loews Corp. 184,400 9,118,580 Markel Corp. * (a) 1,900 481,669 Principal Financial Group, Inc. 63,100 2,086,717 Progressive Corp. 216,100 18,063,799 Sun Life Financial, Inc. 38,800 970,776 Transatlantic Holdings, Inc. (a) 112,650 9,102,120 ------------ 78,292,175 INTERNATIONAL OIL - 2.26% ConocoPhillips 197,663 12,960,763 ------------ MANUFACTURING - 3.77% Tyco International, Ltd. * 814,356 21,580,434 ------------ PHARMACEUTICALS - 2.67% Eli Lilly & Company 114,100 8,024,653 Merck & Company, Inc. 41,800 1,931,160 Pfizer, Inc. 151,580 5,355,322 ------------ 15,311,135 PUBLISHING - 1.93% Gannett Company, Inc. 45,100 4,021,116 Lagardere S.C.A. * 122,300 7,052,788 ------------ 11,073,904 REAL ESTATE - 1.67% CenterPoint Properties Corp., REIT 128,100 9,594,690 ------------ RETAIL TRADE - 2.98% Costco Wholesale Corp. * 459,300 17,076,774 ------------ SEMICONDUCTORS - 0.20% Agere Systems, Inc., Class A * (a) 376,800 1,149,240 ------------ SOFTWARE - 0.87% Microsoft Corp. 181,600 5,001,264 ------------ TOBACCO - 5.47% Altria Group, Inc. 576,000 31,345,920 ------------ TRUCKING & FREIGHT - 0.88% United Parcel Service, Inc., Class B 67,400 5,024,670 ------------ TOTAL COMMON STOCK (Cost: $423,681,938) $512,310,973 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 10.59% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $15,667,588 $ 15,667,588 Federal Home Loan Bank Discount Note, 0.79% due 01/02/2004 19,000,000 18,999,604 Federal National Mortgage Association Discount Notes, 1.01% due 01/07/2004 4,000,000 3,999,327 San Paolo U.S. Finance Company, 1.07% due 01/05/2004 $22,000,000 $ 21,997,384 ------------ $ 60,663,903 TOTAL INVESTMENTS (FUNDAMENTAL VALUE TRUST) (Cost: $484,345,841) $572,974,876 ============
GROWTH & INCOME TRUST
SHARES VALUE ------ ----- COMMON STOCK - 97.89% ADVERTISING - 0.94% Omnicom Group, Inc. * 182,700 $ 15,955,191 ------------ AEROSPACE - 2.69% General Dynamics Corp. 131,100 11,850,129 Lockheed Martin Corp. 231,800 11,914,520 United Technologies Corp. 231,700 21,958,209 ------------ 45,722,858 ALUMINUM - 1.62% Alcoa, Inc. 726,000 27,588,000 ------------ APPAREL & TEXTILES - 1.19% NIKE, Inc., Class B 295,000 20,195,700 ------------ BANKING - 5.03% Bank of America Corp. 437,700 35,204,211 Bank One Corp. 689,100 31,416,069 Wachovia Corp. 406,100 18,920,199 ------------ 85,540,479 BIOTECHNOLOGY - 1.98% Amgen, Inc. * 329,400 20,356,920 Genzyme Corp. * 268,500 13,247,790 ------------ 33,604,710 BROADCASTING - 1.01% Viacom, Inc., Class B 388,000 17,219,440 ------------ BUILDING MATERIALS & CONSTRUCTION - 0.73% Masco Corp. 455,300 12,479,773 ------------ BUSINESS SERVICES - 2.09% Accenture, Ltd., Class A * 691,000 18,187,120 First Data Corp. * (a) 421,600 17,323,544 ------------ 35,510,664 CABLE AND TELEVISION - 3.90% Comcast Corp.-Special Class A * 632,000 19,768,960 EchoStar Communications Corp., Class A * 185,600 6,310,400 Time Warner, Inc. * 2,238,800 40,276,012 ------------ 66,355,372 CHEMICALS - 1.55% Dow Chemical Company * 202,300 8,409,611 E.I. Du Pont De Nemours & Company 390,500 17,920,045 ------------ 26,329,656 COMPUTERS & BUSINESS EQUIPMENT - 4.96% Dell, Inc. * 564,700 19,177,212
The accompanying notes are an integral part of the financial statements. 168 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- COMPUTERS & BUSINESS EQUIPMENT - CONTINUED EMC Corp. * 466,700 $ 6,029,764 Hewlett-Packard Company * 1,079,425 24,794,392 International Business Machines Corp. 371,200 34,402,816 -------------- 84,404,184 COSMETICS & TOILETRIES - 2.94% The Gillette Company * 692,700 25,442,871 The Procter & Gamble Company 245,700 24,540,516 -------------- 49,983,387 ELECTRICAL EQUIPMENT - 3.42% General Electric Company 1,878,400 58,192,832 -------------- ELECTRIC UTILITIES - 0.48% Exelon Corp. 122,487 8,128,237 -------------- FINANCIAL SERVICES - 10.47% American Express Company, 303,100 14,618,513 Citigroup, Inc. 1,459,765 70,856,993 Federal National Mortgage Association 279,100 20,949,246 Franklin Resources, Inc. (a) 203,000 10,568,180 Merrill Lynch & Company, Inc. 502,300 29,459,895 State Street Corp. (b) 249,300 12,983,544 The Goldman Sachs Group, Inc. 187,700 18,531,621 -------------- 177,967,992 FOOD & BEVERAGES - 3.29% PepsiCo, Inc. 519,400 24,214,428 The Coca-Cola Company 624,800 31,708,600 -------------- 55,923,028 HEALTHCARE PRODUCTS - 1.97% Guidant Corp. 139,300 8,385,860 Johnson & Johnson 258,300 13,343,778 Medtronic, Inc. 243,300 11,826,813 -------------- 33,556,451 INDUSTRIAL MACHINERY - 1.94% Caterpillar, Inc. 220,200 18,281,004 ITT Industries, Inc. 197,900 14,686,159 -------------- 32,967,163 INSURANCE - 4.50% American International Group, Inc. 741,175 49,125,079 Marsh & McLennan Companies, Inc. 277,400 13,284,686 Travelers Property Casualty Corp., Class B 832,100 14,120,737 -------------- 76,530,502 INTERNET SOFTWARE - 1.93% Cisco Systems, Inc. * 1,348,800 32,762,352 -------------- MANUFACTURING - 2.11% 3M Company 220,200 18,723,606 Tyco International, Ltd. * 644,700 17,084,550 -------------- 35,808,156 PAPER - 1.20% International Paper Company 472,000 20,347,920 -------------- PETROLEUM SERVICES - 6.09% ChevronTexaco Corp. 322,000 27,817,580 Exxon Mobil Corp. 1,234,300 50,606,300 Schlumberger, Ltd. * 458,900 25,111,008 -------------- 103,534,888 PHARMACEUTICALS - 10.34% Abbott Laboratories, 731,200 34,073,920 Cardinal Health, Inc. 288,800 17,663,008 Eli Lilly & Company 464,600 32,675,318 Pfizer, Inc. 1,858,675 65,666,988 Wyeth 606,700 25,754,415 -------------- 175,833,649 PUBLISHING - 0.50% Gannett Company, Inc. 94,900 8,461,284 -------------- RAILROADS & EQUIPMENT - 1.07% CSX Corp. (a) 508,600 18,279,084 -------------- RETAIL TRADE - 5.85% Lowe's Companies, Inc. 559,200 30,974,088 Target Corp. 413,300 15,870,720 The Gap, Inc. * (a) 774,200 17,969,182 Wal-Mart Stores, Inc. 651,600 34,567,380 -------------- 99,381,370 SEMICONDUCTORS - 3.88% Applied Materials, Inc. * 341,700 7,671,165 Intel Corp. 1,278,900 41,180,580 Texas Instruments, Inc. 579,700 17,031,586 -------------- 65,883,331 SOFTWARE - 4.43% Microsoft Corp. 2,732,200 75,244,788 -------------- TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.59% Corning, Inc. * 907,900 9,469,397 Motorola, Inc. * 1,243,200 17,491,824 -------------- 26,961,221 TELEPHONE - 1.02% Verizon Communications, Inc. * 493,698 17,318,926 -------------- TRUCKING & FREIGHT - 1.18% Fedex Corp. 297,400 20,074,500 -------------- TOTAL COMMON STOCK (Cost: $1,455,090,641) $1,664,047,088 --------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 1.92% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $32,650,450 $ 32,650,450 -------------- REPURCHASE AGREEMENTS - 0.19% UBS Tri-Party Repurchase Agreement, dated 12/31/2003 at 0.84%, to be repurchased at $3,210,150 on 01/02/2004, collateralized by $3,116,000 U.S. Treasury Bonds, 5.500% due 08/15/2028 (valued at $3,314,254, including interest). $ 3,210,000 $ 3,210,000 -------------- TOTAL INVESTMENTS (GROWTH & INCOME TRUST) (Cost: $1,490,951,091) $1,699,907,538 ==============
The accompanying notes are an integral part of the financial statements. 169 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) GREAT COMPANIES-AMERICA TRUST
SHARES VALUE ------ ----- COMMON STOCK - 86.20% ADVERTISING - 3.94% Omnicom Group, Inc. * (a) 1,400 $ 122,262 ------------ AEROSPACE - 7.03% United Technologies Corp. 2,300 217,971 ------------ BANKING - 3.74% Bank of New York Company, Inc. * 3,500 115,920 ------------ BUSINESS SERVICES - 6.23% First Data Corp. * (a) 4,700 193,123 ------------ COMPUTERS & BUSINESS EQUIPMENT - 3.88% International Business Machines Corp. 1,300 120,484 ------------ COSMETICS & TOILETRIES - 7.74% Colgate-Palmolive Company 2,200 110,110 The Procter & Gamble Company 1,300 129,844 ------------ 239,954 ELECTRICAL EQUIPMENT - 5.99% General Electric Company 6,000 185,880 ------------ FINANCIAL SERVICES - 10.32% Citigroup, Inc. 1,500 72,810 Lehman Brothers Holdings, Inc. 1,500 115,830 Merrill Lynch & Company, Inc. 1,400 82,110 The Goldman Sachs Group, Inc. 500 49,365 ------------ 320,115 FOOD & BEVERAGES - 3.14% PepsiCo, Inc. 1,000 46,620 The Coca-Cola Company 1,000 50,750 ------------ 97,370 HEALTHCARE PRODUCTS - 6.78% Johnson & Johnson 2,000 103,320 Medtronic, Inc. 2,200 106,942 ------------ 210,262 INSURANCE - 7.86% American International Group, Inc. 1,800 119,304 Marsh & McLennan Companies, Inc. 2,600 124,514 ------------ 243,818 MANUFACTURING - 3.84% 3M Company 1,400 119,042 ------------ PHARMACEUTICALS - 12.87% Abbott Laboratories, 4,000 186,400 Pfizer, Inc. 3,500 123,655 Wyeth 2,100 89,145 ------------ 399,200 SEMICONDUCTORS - 2.84% Texas Instruments, Inc. 3,000 88,140 ------------ TOTAL COMMON STOCK (Cost: $2,404,767) $ 2,673,541 ------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 9.58% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $297,150 $ 297,150 ------------ REPURCHASE AGREEMENTS - 4.22% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40% to be repurchased at $131,003 on 01/02/2004, collateralized by $95,000 U.S. Treasury Bonds, 8.50% due 02/15/2020 (valued at $135,672, including interest). $131,000 $ 131,000 ------------ TOTAL INVESTMENTS (GREAT COMPANIES - AMERICA TRUST) (Cost: $2,832,917) $ 3,101,691 ============
EQUITY-INCOME TRUST
SHARES VALUE ------ ----- COMMON STOCK - 92.90% AEROSPACE - 4.52% Honeywell International, Inc. 834,400 $ 27,893,992 Lockheed Martin Corp. 143,500 7,375,900 Raytheon Company * 487,000 14,629,480 Rockwell Collins, Inc. 497,100 14,927,913 The Boeing Company * 218,700 9,216,018 ------------ 74,043,303 ALUMINUM - 0.53% Alcoa, Inc. 229,300 8,713,400 ------------ AUTO PARTS - 0.58% Genuine Parts Company 287,050 9,530,060 ------------ AUTOMOBILES - 0.38% Ford Motor Company * 385,100 6,161,600 ------------ BANKING - 6.08% Bank of America Corp. 173,800 13,978,734 Bank One Corp. 485,000 22,111,150 FleetBoston Financial Corp. * 554,160 24,189,084 Mercantile Bankshares Corp. 215,750 9,833,885 National City Corp. 241,200 8,186,328 Northern Trust Corp. 173,100 8,035,302 Wells Fargo & Company 156,400 9,210,396 Wilmington Trust Corp. (a) 114,800 4,132,800 ------------ 99,677,679 BROADCASTING - 0.62% Viacom, Inc., Class B 229,900 10,202,962 ------------ BUSINESS SERVICES - 0.46% Dun & Bradstreet Corp. * 148,750 7,543,113 ------------ CABLE AND TELEVISION - 2.21% Comcast Corp., Class A * 435,317 14,308,870 Time Warner, Inc. * 1,217,400 21,901,026 ------------ 36,209,896
The accompanying notes are an integral part of the financial statements. 170 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ------------ CHEMICALS - 2.87% Dow Chemical Company * 394,700 $ 16,407,679 E.I. Du Pont De Nemours & Company 347,000 15,923,830 Great Lakes Chemical Corp. (a) 296,000 8,048,240 Hercules, Inc. * 548,600 6,692,920 ------------ 47,072,669 COMPUTERS & BUSINESS EQUIPMENT - 1.14% Hewlett-Packard Company * 814,411 18,707,021 ------------ COSMETICS & TOILETRIES - 2.11% International Flavors & Fragrances, Inc. 253,400 8,848,728 Kimberly-Clark Corp. 247,500 14,624,775 The Gillette Company * 300,900 11,052,057 ------------ 34,525,560 CRUDE PETROLEUM & NATURAL GAS - 0.71% Anadarko Petroleum Corp. 229,000 11,681,290 ------------ DOMESTIC OIL - 1.73% Amerada Hess Corp. * 400,100 21,273,317 Marathon Oil Corp. 215,500 7,130,895 ------------ 28,404,212 ELECTRICAL EQUIPMENT - 3.81% Cooper Industries, Ltd., Class A * 390,300 22,610,079 Emerson Electric Company 127,000 8,223,250 General Electric Company 812,800 25,180,544 Hubbell, Inc., Class B * 147,900 6,522,390 ------------ 62,536,263 ELECTRIC UTILITIES - 3.21% Constellation Energy Group, Inc. 346,800 13,580,688 Duke Energy Corp. * 805,900 16,480,655 FirstEnergy Corp. 274,775 9,672,080 TECO Energy, Inc. (a) 114,600 1,651,386 TXU Corp. * 475,900 11,288,348 ------------ 52,673,157 FINANCIAL SERVICES - 5.23% American Express Company 358,500 17,290,455 Citigroup, Inc. 256,264 12,439,055 Federal National Mortgage Association 161,400 12,114,684 J.P. Morgan Chase & Company * 394,100 14,475,293 Janus Capital Group, Inc. 172,600 2,832,366 Mellon Financial Corp. 465,600 14,950,416 Morgan Stanley 200,900 11,626,083 ------------ 85,728,352 FOOD & BEVERAGES - 2.75% Campbell Soup Company * (a) 520,400 13,946,720 ConAgra Foods, Inc. 229,500 6,056,505 General Mills, Inc. * 199,100 9,019,230 McCormick & Company, Inc. 33,100 996,310 Unilever NV-CVA * 229,900 15,019,006 ------------ 45,037,771 GAS & PIPELINE UTILITIES - 0.95% El Paso Corp. (a) 486,900 3,987,711 NiSource, Inc. 532,200 11,676,468 ------------ 15,664,179 HEALTHCARE PRODUCTS - 2.40% Baxter International, Inc. * 515,300 15,726,956 Becton Dickinson & Company 141,700 5,829,538 Johnson & Johnson 345,200 17,833,032 ------------ 39,389,526 HOTELS & RESTAURANTS - 2.63% Hilton Hotels Corp. 632,700 10,838,151 McDonald's Corp. 715,700 17,770,831 Starwood Hotels & Resorts Worldwide, Inc. * 403,171 14,502,061 ------------ 43,111,043 HOUSEHOLD APPLIANCES - 0.33% Black & Decker Corp. 108,500 5,351,220 ------------ HOUSEHOLD PRODUCTS - 2.45% Fortune Brands, Inc. 217,900 15,577,671 Newell Rubbermaid, Inc. 690,400 15,720,408 The Clorox Company 184,200 8,944,752 ------------ 40,242,831 INDUSTRIAL MACHINERY - 0.85% Pall Corp. 517,300 13,879,159 ------------ INDUSTRIALS - 0.68% Rockwell Automation, Inc 311,800 11,100,080 ------------ INSURANCE - 7.07% American International Group, Inc. 123,761 8,202,879 Chubb Corp. 184,100 12,537,210 CIGNA Corp. * 239,100 13,748,250 John Hancock Financial Services, Inc. 114,104 4,278,900 Lincoln National Corp. 319,467 12,896,883 Marsh & McLennan Companies, Inc. 400,100 19,160,789 SAFECO Corp. * 397,400 15,470,782 The St. Paul Companies, Inc. * (a) 240,748 9,545,658 Travelers Property Casualty Corp., Class B 487,000 8,264,390 UNUMProvident Corp.(a) 744,400 11,739,188 ------------ 115,844,929 INTERNATIONAL OIL - 1.19% Royal Dutch Petroleum Company 372,300 19,504,797 ------------ LEISURE TIME - 1.15% The Walt Disney Company * 806,600 18,817,978 ------------ LIQUOR - 0.23% Brown Forman Corp., Class B 40,100 3,747,345 ------------ NEWSPAPERS - 2.03% Dow Jones & Company, Inc. 350,500 17,472,425 Knight-Ridder, Inc. 204,300 15,806,691 ------------ 33,279,116 PAPER - 1.48% International Paper Company 463,455 19,979,545 MeadWestvaco Corp. 142,200 4,230,450 ----------- 24,209,995 PETROLEUM SERVICES - 5.71% Baker Hughes, Inc. 142,500 4,582,800 BP PLC, ADR 351,960 17,369,226 ChevronTexaco Corp. 345,367 29,836,255 Exxon Mobil Corp. 799,290 32,770,890 Schlumberger, Ltd. * 164,400 8,995,968 ----------- 93,555,139 PHARMACEUTICALS - 5.99% Abbott Laboratories 258,700 12,055,420 Bristol-Myers Squibb Company * 916,700 26,217,620
The accompanying notes are an integral part of the financial statements. 171 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- PHARMACEUTICALS - CONTINUED Merck & Company, Inc. 629,700 $ 29,092,140 Schering-Plough Corp. 723,800 12,586,882 Wyeth 430,600 18,278,970 -------------- 98,231,032 PHOTOGRAPHY - 1.08% Eastman Kodak Company (a) 688,500 17,673,795 -------------- PUBLISHING - 1.21% Readers Digest Association, Inc., Class A (a) 116,200 1,703,492 The New York Times Company, Class A 378,800 18,102,852 -------------- 19,806,344 RAILROADS & EQUIPMENT - 1.94% Norfolk Southern Corp. 488,900 11,562,485 Union Pacific Corp. 290,300 20,170,044 -------------- 31,732,529 REAL ESTATE - 0.52% Simon Property Group, Inc., REIT 183,000 8,480,220 -------------- RETAIL GROCERY - 0.07% Winn-Dixie Stores, Inc. (a) 116,000 1,154,200 -------------- RETAIL TRADE - 1.78% Home Depot, Inc. 458,500 16,272,165 J.C. Penney Company, Inc. * 113,600 2,985,408 May Department Stores Company 338,950 9,853,276 -------------- 29,110,849 SANITARY SERVICES - 0.94% Waste Management, Inc. 518,932 15,360,387 -------------- SEMICONDUCTORS - 0.71% Agere Systems, Inc., Class A * (a) 742,505 2,264,640 Texas Instruments, Inc. 316,700 9,304,646 -------------- 11,569,286 SOFTWARE - 0.78% Microsoft Corp. 466,500 12,847,410 -------------- STEEL - 0.59% Nucor Corp. (a) 172,100 9,637,600 -------------- TELECOMMUNICATIONS EQUIPMENT & SERVICES - 2.57% Lucent Technologies, Inc. * (a) 1,142,500 3,244,700 Motorola, Inc. * 919,600 12,938,772 Nokia Oyj, ADR 510,700 8,681,900 SBC Communications, Inc. 661,664 17,249,580 -------------- 42,114,952 TELEPHONE - 4.21% ALLTEL Corp. 269,100 12,534,678 AT&T Corp. 460,870 9,355,661 Qwest Communications International, Inc. * 2,761,700 11,930,544 Sprint Corp. (FON Group) 674,200 11,070,364 Verizon Communications, Inc. * 688,836 24,164,367 -------------- 69,055,614 TOBACCO - 1.36% Altria Group, Inc. 201,800 10,981,956 UST, Inc. (a) 315,600 11,263,764 -------------- 22,245,720 TOYS, AMUSEMENTS & SPORTING GOODS - 1.06% Hasbro, Inc. * 480,700 $ 10,229,296 Toys R Us, Inc. * 570,300 7,208,592 -------------- 17,437,888 TOTAL COMMON STOCK (Cost: $1,410,057,897) $1,522,603,471 -------------- PREFERRED STOCK - 0.22% FINANCIAL SERVICES - 0.22% Ford Motor Company Capital Trust II * 63,500 $ 3,546,475 -------------- TOTAL PREFERRED STOCK (Cost: $3,175,000) $ 3,546,475 --------------
PRINCIPAL AMOUNT VALUE --------- ----- CORPORATE BONDS - 0.48% TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.48% Lucent Technologies, Inc., 8.00%, 8/1/2031 (a) 7,350,000 $ 7,873,688 -------------- TOTAL CORPORATE BONDS (Cost: $7,965,563) $ 7,873,688 -------------- SHORT TERM INVESTMENTS - 6.18% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $50,949,353 $ 50,949,353 T. Rowe Price Reserve Investment Fund, (c) 50,264,022 50,264,022 -------------- $ 101,213,375 REPURCHASE AGREEMENTS - 0.22% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $3,675,082 on 01/02/2004, collateralized by $2,555,000 U.S. Treasury Bonds, 9.250% due 02/15/2016 (valued at $3,752,656, including interest). $ 3,675,000 $ 3,675,000 -------------- TOTAL INVESTMENTS (EQUITY-INCOME TRUST) (Cost: $1,526,086,835) $1,638,912,009 ==============
INCOME & VALUE TRUST
SHARES VALUE ------ ----- COMMON STOCK - 56.26% ADVERTISING - 0.32% Monster Worldwide, Inc. * (a) 60,300 $ 1,324,188 The Interpublic Group of Companies, Inc. 65,000 1,014,000 ----------- 2,338,188 AEROSPACE - 1.13% Northrop Grumman Corp. 24,600 2,351,760 United Technologies Corp. 61,700 5,847,309 ----------- 8,199,069 AUTO SERVICES - 0.21% AutoNation, Inc. * 83,200 1,528,384 -----------
The accompanying notes are an integral part of the financial statements. 172 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- BANKING - 1.63% Bank One Corp. 169,900 $ 7,745,741 FleetBoston Financial Corp. * 19,500 851,175 Wells Fargo & Company 55,600 3,274,284 ----------- 11,871,200 BIOTECHNOLOGY - 1.45% Amgen, Inc. * 87,800 5,426,040 Applera Corp.-Applied Biosystems Group * 207,900 4,305,609 Biogen Idec, Inc. * 22,000 809,160 ----------- 10,540,809 BROADCASTING - 0.54% Entercom Communications Corp. * 5,500 291,280 Fox Entertainment Group, Inc., Class A * 15,900 463,485 Hughes Electronics Corp. * 91,541 1,515,004 Radio One, Inc., Class D * (a) 14,500 279,850 Viacom, Inc., Class B 31,100 1,380,218 ----------- 3,929,837 BUILDING MATERIALS & CONSTRUCTION - 0.64% American Standard Companies, Inc. * 46,200 4,652,340 ----------- BUSINESS SERVICES - 1.70% Affiliated Computer Services, Inc., Class A * 30,300 1,650,138 Automatic Data Processing, Inc. 109,200 4,325,412 Cadence Design Systems, Inc. * 83,300 1,497,734 Fluor Corp. * (a) 97,900 3,880,756 Robert Half International, Inc.* 42,800 998,952 ----------- 12,352,992 CABLE AND TELEVISION - 1.68% Cablevision Systems New York Group, Class A * (a) 133,248 3,116,671 Comcast Corp., Class A * 28,500 936,795 Cox Communications, Inc., Class A * 88,400 3,045,380 Time Warner, Inc. * 285,000 5,127,150 ----------- 12,225,996 CELLULAR COMMUNICATIONS - 0.48% Sprint Corp. (PCS Group) * (a) 624,500 3,509,690 ---------- CHEMICALS - 0.96% Air Products & Chemicals, Inc. 82,800 4,374,324 E.I. Du Pont De Nemours & Company 57,000 2,615,730 ----------- 6,990,054 COMPUTERS & BUSINESS EQUIPMENT - 0.91% International Business Machines Corp. 26,400 2,446,752 Lexmark International, Inc. * 17,700 1,391,928 Seagate Technology, Inc. 44,200 835,380 Sun Microsystems, Inc. * 435,900 1,957,191 ----------- 6,631,251 COSMETICS & TOILETRIES - 0.58% Estee Lauder Companies, Inc., Class A 45,500 1,786,330 Kimberly-Clark Corp. 11,000 649,990 The Procter & Gamble Company 17,900 1,787,852 ----------- 4,224,172 CRUDE PETROLEUM & NATURAL GAS - 0.07% Devon Energy Corp. 9,200 $ 526,792 ----------- DOMESTIC OIL - 0.84% Unocal Corp. * 165,500 6,095,365 ----------- ELECTRICAL EQUIPMENT - 1.24% Emerson Electric Company 49,200 3,185,700 General Electric Company 188,400 5,836,632 ----------- 9,022,332 ELECTRIC UTILITIES - 1.11% Duke Energy Corp. * 125,500 2,566,475 Pinnacle West Capital Corp. 20,500 820,410 The AES Corp. * 498,800 4,708,672 ----------- 8,095,557 ELECTRONICS - 0.78% Agilent Technologies, Inc. * 153,226 4,480,328 Avnet, Inc. * 56,300 1,219,458 ----------- 5,699,786 FINANCIAL SERVICES - 5.69% Americredit Corp. * (a) 58,700 935,091 Federal Home Loan Mortgage Corp. 42,500 2,478,600 Federal National Mortgage Association 61,700 4,631,202 IndyMac Bancorp, Inc. (a) 236,300 7,039,377 J.P. Morgan Chase & Company * 58,900 2,163,397 SLM Corp. 247,900 9,340,872 State Street Corp. (b) 56,700 2,952,936 The Goldman Sachs Group, Inc. 8,300 819,459 Washington Mutual, Inc. 274,800 11,024,976 ----------- 41,385,910 FOOD & BEVERAGES - 2.14% Anheuser-Busch Companies, Inc. 58,600 3,087,048 Campbell Soup Company * 115,599 3,098,053 H.J. Heinz Company 28,800 1,049,184 Kraft Foods, Inc., Class A 49,800 1,604,556 PepsiCo, Inc. 54,500 2,540,790 The Pepsi Bottling Group, Inc. * 45,000 1,088,100 Unilever NV (a) 47,800 3,102,220 ----------- 15,569,951 GAS & PIPELINE UTILITIES - 0.83% Kinder Morgan Management LLC * 84,182 3,616,459 Kinder Morgan, Inc. 61 3,605 NiSource, Inc. 64,700 1,419,518 Williams Companies, Inc. 98,300 965,306 ----------- 6,004,888 HEALTHCARE PRODUCTS - 0.57% Becton Dickinson & Company 29,654 1,219,965 Guidant Corp. 31,963 1,924,173 Medtronic, Inc. 21,400 1,040,254 ---------- 4,184,392 HEALTHCARE SERVICES - 0.65% Lincare Holdings, Inc. * 126,900 3,810,807 Pacificare Health Systems, Inc.* 13,500 912,600 ----------- 4,723,407 HOLDINGS COMPANIES/CONGLOMERATES - 0.82% Berkshire Hathaway, Inc., Class A * 71 5,981,750 -----------
The accompanying notes are an integral part of the financial statements. 173 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ------------ HOTELS & RESTAURANTS - 0.03% McDonald's Corp. 9,500 $ 235,885 ------------ INDUSTRIAL MACHINERY - 0.35% Ingersoll-Rand Company, Class A 37,500 2,545,500 ------------ INSURANCE - 1.63% American International Group, Inc. 23,875 1,582,435 Chubb Corp. 28,100 1,913,610 Hartford Financial Services Group, Inc. 33,000 1,947,990 The PMI Group, Inc. (a) 73,700 2,743,851 XL Capital, Ltd., Class A 47,500 3,683,625 ------------ 11,871,511 INTERNATIONAL OIL - 0.99% Royal Dutch Petroleum Company 92,200 4,830,358 Weatherford International, Ltd.* 66,900 2,408,400 ------------ 7,238,758 INTERNET CONTENT - 0.16% The Thomson Corp. 32,000 1,160,000 ------------ INTERNET RETAIL - 1.02% eBay, Inc. * 57,600 3,720,384 InterActiveCorp * 109,400 3,711,942 ------------ 7,432,326 INTERNET SOFTWARE - 1.45% Checkfree Corp. * (a) 76,800 2,123,520 Cisco Systems, Inc. * 274,200 6,660,318 VeriSign, Inc. * 110,200 1,796,260 ------------ 10,580,098 LEISURE TIME - 0.52% Carnival Corp. 58,300 2,316,259 The Walt Disney Company * 62,900 1,467,457 ------------ 3,783,716 MANUFACTURING - 0.44% Illinois Tool Works, Inc. 20,800 1,745,328 Siemens AG, ADR * (a) 18,000 1,438,920 ------------ 3,184,248 MEDICAL-HOSPITALS - 0.17% Triad Hospitals, Inc. * 36,200 1,204,374 ------------ MINING - 0.16% Newmont Mining Corp. 24,000 1,166,640 ------------ NEWSPAPERS - 0.13% Knight-Ridder, Inc. 12,400 959,388 ------------ PAPER - 0.17% Boise Cascade Corp. * 8,600 282,596 International Paper Company 22,000 948,420 ------------ 1,231,016 PETROLEUM SERVICES - 2.70% Baker Hughes, Inc. 65,800 2,116,128 BJ Services Company * 50,900 1,827,310 ChevronTexaco Corp. 15,600 1,347,684 Exxon Mobil Corp. 171,100 7,015,100 Schlumberger, Ltd. * 111,400 6,095,808 Transocean, Inc. * 53,000 1,272,530 ------------ 19,674,560 PHARMACEUTICALS - 7.77% Allergan, Inc. 140,100 10,761,081 AstraZeneca PLC, ADR (a) 429,500 20,779,210 Eli Lilly & Company 61,200 4,304,196 Forest Laboratories, Inc. * 252,300 15,592,140 Pfizer, Inc. 144,700 5,112,251 ------------ 56,548,878 RETAIL TRADE - 1.99% Costco Wholesale Corp. * 96,800 3,599,024 Lowe's Companies, Inc. 126,100 6,984,679 RadioShack Corp. 49,300 1,512,524 Williams-Sonoma, Inc. * 68,200 2,371,314 ------------ 14,467,541 SEMICONDUCTORS - 4.29% Altera Corp. * 100,400 2,279,080 Applied Materials, Inc. * 347,900 7,810,355 Applied Micro Circuits Corp. * 130,400 779,792 ASML Holding NV * (a) 48,500 972,425 Credence Systems Corp. * (a) 38,500 506,660 Intel Corp. 86,100 2,772,420 KLA-Tencor Corp. * 101,400 5,949,138 Lam Research Corp. * 39,000 1,259,700 Linear Technology Corp. 26,300 1,106,441 Novellus Systems, Inc. * 24,000 1,009,200 PMC-Sierra, Inc. * (a) 108,400 2,184,260 Teradyne, Inc. * 126,600 3,221,970 Xilinx, Inc. * 36,100 1,398,514 ------------ 31,249,955 SOFTWARE - 1.61% Microsoft Corp. 205,800 5,667,732 PeopleSoft, Inc. * 158,600 3,616,080 SAP AG, ADR 59,300 2,464,508 ------------ 11,748,320 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.11% Polycom, Inc. * (a) 42,200 823,744 QUALCOMM, Inc. 134,200 7,237,406 ------------ 8,061,150 TELEPHONE - 1.45% AT&T Corp. 105,640 2,144,492 Sprint Corp. (FON Group) 426,800 7,008,056 Verizon Communications, Inc. * 40,000 1,403,200 ------------ 10,555,748 TOBACCO - 0.67% Altria Group, Inc. 89,600 4,876,032 ------------ TRAVEL SERVICES - 0.18% Sabre Holdings Corp. (a) 62,100 1,340,739 ------------ TRUCKING & FREIGHT - 0.30% Navistar International Corp. * 45,400 2,174,206 ------------ TOTAL COMMON STOCK (Cost: $332,115,463) $409,574,701 ------------ PREFERRED STOCK - 0.18% BROADCASTING - 0.04% The News Corp., Ltd., ADR 10,238 309,700 ------------
The accompanying notes are an integral part of the financial statements. 174 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ------------ MINING - 0.14% Phelps Dodge Corp. * (a) 5,900 $ 998,280 ------------ TOTAL PREFERRED STOCK (Cost: $850,695) $ 1,307,980 ------------
PRINCIPAL AMOUNT VALUE ----------- ----------- U.S. TREASURY OBLIGATIONS - 6.37% U.S. TREASURY BONDS - 2.02% 5.25% due 02/15/2029 (a) $ 7,005,000 $ 7,066,840 6.50% due 11/15/2026 (a) 565,000 664,669 7.875% due 02/15/2021 (a) 1,450,000 1,929,237 8.00% due 11/15/2021 (a) 280,000 378,153 8.875% due 08/15/2017 (a) 3,285,000 4,652,381 ----------- 14,691,280 U.S. TREASURY NOTES - 4.35% 1.625% due 04/30/2005 (a) 1,715,000 1,720,159 1.875% due 09/30/2004 (a) 12,750,000 12,822,216 2.625% due 05/15/2008 (a) 1,850,000 1,822,178 3.25% due 08/15/2007 (a) 1,125,000 1,147,544 5.50% due 05/15/2009 (a) 1,745,000 1,940,562 5.625% due 05/15/2008 (a) 4,890,000 5,416,819 5.75% due 08/15/2010 (a) 4,800,000 5,382,000 6.50% due 02/15/2010 (a) 1,255,000 1,458,349 ----------- 31,709,827 TOTAL U.S. TREASURY OBLIGATIONS (Cost: $46,195,903) $46,401,107 ----------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 8.18% FEDERAL HOME LOAN BANK - 0.14% 5.25% due 02/13/2004 1,000,000 1,004,591 ----------- FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.36% 3.625% due 09/15/2008 (a) 7,145,000 7,192,279 5.50% TBA ** 1,500,000 1,517,812 5.50% due 07/15/2006 - 02/01/2018 (a) 1,357,601 1,455,198 6.00% TBA ** 3,800,000 3,925,875 6.00% due 04/01/2016 - 08/01/2017 1,771,772 1,859,119 6.875% due 09/15/2010 1,030,000 1,196,263 ----------- 17,146,546 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.36% FRN 3.817% due 09/01/2033 3,923,705 3,945,737 FRN 3.864% due 07/01/2033 397,925 399,918 5.00% TBA ** 1,500,000 1,529,532 5.00% due 05/01/2018 1,588,835 1,622,541 5.125% due 02/13/2004 (a) 1,500,000 1,506,813 5.50% TBA ** 5,845,000 5,919,886 6.00% due 05/15/2008 - 06/01/2016 1,437,817 1,551,142 6.25% due 05/15/2029 1,750,000 1,895,740 6.50% due 06/01/2031 - 07/01/2032 2,845,141 2,976,104 7.00% due 09/01/2031 - 06/01/2032 1,349,914 1,429,319 7.50% due 01/25/2028 - 10/01/2031 1,450,499 1,569,677 FRN 7.50% due 05/01/2031 100,606 107,513 ----------- 24,453,922 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 2.32% 5.00% TBA ** 7,120,000 7,053,250 5.50% TBA ** 6,140,000 6,220,587 6.50% due 05/15/2029 - 04/15/2032 2,727,086 2,877,536 7.00% due 04/15/2029 504,316 537,845 8.00% due 10/15/2027 - 01/15/2029 207,495 225,935 ----------- 16,915,153 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $58,700,751) 59,520,212 ----------- FOREIGN GOVERNMENT OBLIGATIONS - 0.11% REPUBLIC OF CHILE - 0.02% 5.50% due 01/15/2013 130,000 133,705 ----------- GOVERNMENT OF MEXICO - 0.09% 4.625% due 10/08/2008 140,000 141,750 6.375% due 01/16/2013 100,000 103,750 8.375% due 01/14/2011 80,000 95,000 9.875% due 02/01/2010 195,000 246,509 11.375% due 09/15/2016 50,000 70,875 ----------- 657,884 TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost: $748,066) 791,589 ----------- CORPORATE BONDS - 8.15% AEROSPACE - 0.19% Raytheon Company, 6.00% due 12/15/2010 125,000 133,593 Systems 2001 Asset Trust LLC, 6.664% due 09/15/2013 501,865 554,661 Series 2001, Class B, 7.156% due 12/15/2011 631,637 689,458 ----------- 1,377,712 ALUMINUM - 0.03% Alcan Aluminum, Ltd., 5.20% due 01/15/2014 190,000 192,048 ----------- AMUSEMENT & THEME PARKS - 0.14% Six Flags, Inc., 8.875% due 02/01/2010 1,000,000 1,026,250 ----------- AUTO PARTS - 0.05% Delphi Corp., 6.50% due 08/15/2013 140,000 147,022 Lear Corp., Series B, 8.11% due 05/15/2009 210,000 247,013 ----------- 394,035 AUTO SERVICES - 0.03% Hertz Corp., 7.625% due 08/15/2007 200,000 219,708 ----------- AUTOMOBILES - 0.14% DaimlerChrysler North America Holding, 4.05% due 06/04/2008 1,000,000 993,192 ----------- BANKING - 0.65% Bank of America Corp., 7.125% due 09/15/2006 750,000 836,882
The accompanying notes are an integral part of the financial statements. 175 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- BANKING - CONTINUED Bank One Corp., 4.90% due 04/30/2015 $ 170,000 $ 166,427 Barclays Bank PLC, ADR, FRN 6.86% due 09/29/2049 70,000 75,914 Bayerische Landesbank Gironzentrale, Series MTN, 520,000 526,472 2.50% due 03/30/2006 BNP Paribas LLC, 5.125% due 01/15/2015 100,000 99,624 Capital One Bank, 5.75% due 09/15/2010 230,000 243,301 Kazkommerts International BV, 8.50% due 04/16/2013 200,000 210,100 MBNA America Bank, 5.375% due 01/15/2008 1,000,000 1,063,250 Union Bancal Corp., 5.25% due 12/16/2013 190,000 191,895 Wells Fargo Company, 3.50% due 04/04/2008 625,000 626,995 Zions Bancorporation, 6.00% due 09/15/2015 625,000 655,314 ---------- 4,696,174 BROADCASTING - 0.49% Chancellor Media Corp., 8.00% due 11/01/2008 690,000 798,675 Clear Channel Communications, Inc., 6.00% due 11/01/2006 250,000 270,225 7.65% due 09/15/2010 125,000 146,317 Cox Radio, Inc., 6.375% due 05/15/2005 1,000,000 1,051,908 Liberty Media Corp., FRN 2.670% due 09/17/2006 320,000 323,479 5.70% due 05/15/2013 70,000 70,788 7.875% due 07/15/2009 350,000 405,433 News America Holdings, Inc., 6.75% due 01/09/2038 50,000 55,832 Young Broadcasting, Inc., 10.00% due 03/01/2011 221,000 238,127 Series B, 8.75% due 06/15/2007 170,000 174,250 ---------- 3,535,034 BUSINESS SERVICES - 0.09% Electronic Data Systems Corp., 6.00% due 08/01/2013 500,000 491,318 PHH Corp., 7.125% due 03/01/2013 130,000 145,586 ---------- 636,904 CABLE AND TELEVISION - 0.32% AOL Time Warner, Inc., 7.625% due 04/15/2031 160,000 184,603 Comcast Corp., Class A, 7.05% due 03/15/2033 470,000 511,272 Cox Communications, Inc., 7.75% due 11/01/2010 250,000 297,815 Time Warner Entertainment Company LP, 8.375% due 03/15/2023 40,000 49,565 8.875% due 10/01/2012 15,000 19,019 Univision Communications, Inc., 3.875% due 10/15/2008 250,000 247,357 7.85% due 07/15/2011 835,000 992,681 ---------- 2,302,312 CELLULAR COMMUNICATIONS - 0.53% American Tower Corp., 9.375% due 02/01/2009 875,000 931,875 AT&T Wireless Services, Inc., 7.875% due 03/01/2011 375,000 433,930 Crown Castle International Corp., 7.50% due 12/01/2013 700,000 703,500 Motorola, Inc., 7.50% due 05/15/2025 40,000 43,449 8.00% due 11/01/2011 60,000 70,958 Nextel Communications, Inc., 7.375% due 08/01/2015 1,000,000 1,075,000 Verizon Wireless Capital LLC, 5.375% due 12/15/2006 375,000 400,163 Vodafone Group PLC, 5.375% due 01/30/2015 210,000 211,946 ---------- 3,870,821 CHEMICALS - 0.06% ICI Wilmington, Inc., 4.375% due 12/01/2008 460,000 458,271 ---------- COMMERCIAL SERVICES - 0.07% Cendant Corp., 6.25% due 01/15/2008 250,000 272,707 6.875% due 08/15/2006 200,000 219,428 ---------- 492,135 CONTAINERS & GLASS - 0.05% Packaging Corporation of America, 5.75% due 08/01/2013 360,000 363,674 ---------- DOMESTIC OIL - 0.02% Union Oil Company of California, 7.50% due 02/15/2029 140,000 164,353 ---------- ELECTRICAL EQUIPMENT - 0.20% General Electric Company, 5.00% due 02/01/2013 1,320,000 1,334,962 SP Powerassets, Ltd., 5.00% due 10/22/2013 150,000 150,797 ---------- 1,485,759 ELECTRIC UTILITIES - 0.21% CILCORP, Inc., 8.70% due 10/15/2009 280,000 337,832 9.375% due 10/15/2029 25,000 33,605 Dominion Resources, Inc., 5.70% due 09/17/2012 125,000 131,704 Duke Capital Corp., 6.25% due 02/15/2013 240,000 253,159 Empresa Nacional De Electricidad, 8.50% due 04/01/2009 90,000 101,431 Oncor Electric Delivery Company, 7.00% due 05/01/2032 125,000 137,893 Tampa Electric Company, 6.375% due 08/15/2012 190,000 204,095 United Energy Distribution Property, Ltd., 4.70% due 04/15/2011 170,000 172,405 Virginia Electric & Power Company, 4.75% due 03/01/2013 160,000 158,160 ---------- 1,530,284
The accompanying notes are an integral part of the financial statements. 176 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- ELECTRONICS - 0.17% Koninklijke Philips Electronics NV, 7.20% due 06/01/2026 $ 500,000 $ 561,244 Solectron Corp., 9.625% due 02/15/2009 625,000 696,875 ----------- 1,258,119 ENERGY - 0.08% Midamerican Energy Company, Series MTN, 5.125% due 01/15/2013 45,000 45,862 Peco Energy Company, 5.95% due 11/01/2011 80,000 86,684 Progress Energy, Inc., 5.85% due 10/30/2008 400,000 428,934 ----------- 561,480 FINANCIAL SERVICES - 1.65% Capital One Financial Corp., 6.25% due 11/15/2013 110,000 113,187 Citigroup, Inc., 5.625% due 08/27/2012 180,000 190,016 Corporacion Andina de Fomento, 6.875% due 03/15/2012 170,000 188,625 Credit Suisse First Boston USA, Inc., 6.50% due 01/15/2012 125,000 139,128 Ford Motor Credit Company, FRN 3.035% due 10/25/2004 150,000 151,416 5.80% due 01/12/2009 750,000 772,390 7.00% due 10/01/2013 170,000 179,295 7.375% due 10/28/2009 - 240,000 262,161 02/01/2011 7.875% due 06/15/2010 90,000 100,563 Fuji (Mizuho) JGB Investment, LLC, FRN 9.87% due 12/31/2049 260,000 293,871 General Electric Capital Corp., MTN, Series A, 4.25% due 01/15/2008 310,000 320,596 6.00% due 06/15/2012 110,000 119,290 General Motors Acceptance Corp, 6.875% due 09/15/2011 1,090,000 1,174,068 7.00% due 02/01/2012 250,000 268,786 7.25% due 03/02/2011 80,000 87,769 7.75% due 01/19/2010 150,000 170,034 8.00% due 11/01/2031 275,000 308,816 HBOS PLC, 3.125% due 01/12/2007 500,000 504,018 FRN 5.375% due 11/01/2049 370,000 374,569 Household Finance Corp., 6.375% due 11/27/2012 250,000 274,263 6.40% due 06/17/2008 475,000 526,638 HVB Funding Trust III, 9.00% due 10/22/2031 80,000 96,494 International Lease Finance Corp., 4.55% due 10/15/2009 180,000 179,606 J.P. Morgan Chase & Company, 5.35% due 03/01/2007 250,000 267,574 MBNA Corp., 6.125% due 03/01/2013 160,000 171,803 Nationwide Life Global Funding I, 5.35% due 02/15/2007 110,000 118,420 NiSource Finance, Corp., 6.15% due 03/01/2013 160,000 172,031 PCCW - HKTC Capital, Ltd, 7.75% due 11/15/2011 160,000 188,674 Principal Life Global Funding I, 4.40% due 10/01/2010 310,000 312,080 Reliastar Financial Corp., 6.50% due 11/15/2008 280,000 309,247 SLM Corp., Series MTNA, 5.00% due 04/15/2015 625,000 616,625 5.375% due 01/15/2013 405,000 415,583 The Goldman Sachs Group, Inc., 5.25% due 04/01/2013 1,070,000 1,083,769 USAA Capital Corp., Series MTNB, 4.00% due 12/10/2007 200,000 204,495 Washington Mutual, Inc., 5.625% due 01/15/2007 1,250,000 1,347,205 ----------- 12,003,105 FOOD & BEVERAGES - 0.23% Cadbury Schweppes US Finance LLC, 5.125% due 10/01/2013 170,000 168,893 Delhaize America, Inc., 8.125% due 04/15/2011 450,000 517,500 Kellogg Company, Series B, 6.60% due 04/01/2011 150,000 168,104 Kraft Foods, Inc., 5.25% due 06/01/2007 180,000 191,502 Nabisco, Inc., 7.05% due 07/15/2007 160,000 179,976 7.55% due 06/15/2015 375,000 448,825 ----------- 1,674,800 FOREST PRODUCTS - 0.05% Weyerhaeuser Company, 6.75% due 03/15/2012 335,000 365,465 ----------- GAS & PIPELINE UTILITIES - 0.01% Centerpoint Energy Resources Corp., 7.875% due 04/01/2013 80,000 90,568 ----------- HEALTHCARE SERVICES - 0.09% Aetna, Inc., 7.375% due 03/01/2006 100,000 110,020 Health Net, Inc., 8.375% due 04/15/2011 150,000 180,236 Humana, Inc., 7.25% due 08/01/2006 360,000 393,342 ----------- 683,598 HOMEBUILDERS - 0.11% Centex Corp., 4.75% due 01/15/2008 70,000 72,222 Lennar Corp., 5.95% due 03/01/2013 40,000 41,854 Series B, 9.95% due 05/01/2010 40,000 45,950 MDC Holdings, Inc., 5.50% due 05/15/2013 160,000 160,336 Pulte Homes, Inc., 6.25% due 02/15/2013 175,000 185,775 7.875% due 06/15/2032 150,000 174,218 8.125% due 03/01/2011 75,000 89,055 ----------- 769,410 HOTELS & RESTAURANTS - 0.04% Boyd Gaming Corp., 9.25% due 08/01/2009 250,000 279,375 -----------
The accompanying notes are an integral part of the financial statements. 177 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ---------- ---------- INSURANCE - 0.31% Jackson National Life Insurance Company, 5.25% due 03/15/2007 $ 170,000 $ 182,328 Lincoln National Corp., 6.20% due 12/15/2011 140,000 152,742 MetLife, Inc., 3.911% due 05/15/2005 315,000 323,941 Monumental Global Funding, 5.20% due 01/30/2007 625,000 666,858 Monumental Global Funding II, 3.85% due 03/03/2008 620,000 625,543 Nationwide Mutual Insurance Company, 7.875% due 04/01/2033 60,000 69,410 Prudential Financial, 6.375% due 07/23/2006 225,000 245,098 ---------- 2,265,920 INTERNATIONAL OIL - 0.04% Pogo Producing Company, Series B, 10.375% due 02/15/2009 300,000 318,000 ---------- MANUFACTURING - 0.15% Tyco International Group SA, 6.00% due 11/15/2013 250,000 257,500 6.125% due 01/15/2009 260,000 278,200 6.75% due 02/15/2011 530,000 579,025 ---------- 1,114,725 MEDICAL-HOSPITALS - 0.35% HCA, Inc., 6.25% due 02/15/2013 1,950,000 1,996,034 6.95% due 05/01/2012 225,000 241,248 7.875% due 02/01/2011 145,000 165,374 8.75% due 09/01/2010 105,000 125,027 ---------- 2,527,683 METAL & METAL PRODUCTS - 0.04% Inco, Ltd., 7.20% due 09/15/2032 250,000 273,287 ---------- MINING - 0.01% Corporacion Nacional del Cobre, 5.50% due 10/15/2013 90,000 91,331 ---------- PAPER - 0.05% International Paper Company, 5.50% due 01/15/2014 140,000 140,335 Norske Skogindustrier ASA, 6.125% due 10/15/2015 230,000 232,900 ---------- 373,235 PHARMACEUTICALS - 0.07% Schering Plough Corp., 5.30% due 12/01/2013 490,000 498,550 ---------- PUBLISHING - 0.12% Time Warner Companies, 7.57% due 02/01/2024 750,000 848,148 ---------- RAILROADS & EQUIPMENT - 0.01% Union Pacific Railroad Company, Series 2002-1, 6.061% due 01/17/2023 75,000 81,097 ---------- REAL ESTATE - 0.35% Developers Diversified Realty Company, 4.625% due 08/01/2010 250,000 248,633 EOP Operating LP, 6.75% due 02/15/2012 210,000 231,952 Hospitality Properties Trust, REIT, 6.75% due 02/15/2013 555,000 581,499 Kimco Realty Corp., REIT, 3.95% due 08/05/2008 500,000 500,878 Price REIT, Inc., 7.50% due 11/05/2006 250,000 283,110 Rouse Company, 5.375% due 11/26/2013 270,000 268,302 7.20% due 09/15/2012 140,000 157,804 Socgen Real Estate Company LLC, FRN 7.64% due 12/29/2049 260,000 293,740 ---------- 2,565,918 RETAIL GROCERY - 0.02% Albertsons, Inc., 7.50% due 02/15/2011 145,000 166,221 ---------- SANITARY SERVICES - 0.05% Waste Management, Inc., 6.375% due 11/15/2012 220,000 238,796 7.75% due 05/15/2032 100,000 117,844 ---------- 356,640 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.36% Deutsche Telekom International Finance BV, 9.25% due 06/01/2032 190,000 260,706 Dobson Communications Corp., 10.875% due 07/01/2010 600,000 654,000 France Telecom SA, FRN 9.00% due 03/01/2011 480,000 576,519 Singapore Telecommunications, Ltd., 6.375% due 12/01/2011 125,000 138,161 Telstra Corp. Ltd., 6.375% due 04/01/2012 125,000 138,136 Tritel PCS, Inc., 10.375% due 01/15/2011 550,000 658,048 Verizon Global Funding Corp., 7.25% due 12/01/2010 170,000 195,736 ---------- 2,621,306 TELEPHONE - 0.49% AT&T Corp., FRN 7.25% due 11/15/2006 500,000 552,918 FRN 7.80% due 11/15/2011 160,000 184,157 FRN 8.75% due 11/15/2031 125,000 146,070 SBC Communications, Inc., 5.875% due 02/01/2012 125,000 132,756 Sprint Capital Corp., 8.375% due 03/15/2012 675,000 788,265 8.75% due 03/15/2032 300,000 354,417 Telecom Italia Capital, 4.00% due 11/15/2008 625,000 628,956 5.25% due 11/15/2013 380,000 380,757 Telefonos De Mexico SA, 4.50% due 11/19/2008 195,000 195,296 Telus Corp., 8.00% due 06/01/2011 160,000 187,086 ---------- 3,550,678
The accompanying notes are an integral part of the financial statements. 178 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ----------- ----------- TOYS, AMUSEMENTS & SPORTING GOODS - 0.03% Toys R Us, Inc., 7.375% due 10/15/2018 $ 220,000 $ 219,845 ----------- TOTAL CORPORATE BONDS (Cost: $56,659,116) $59,297,170 ----------- CONVERTIBLE BONDS - 0.28% INTERNET RETAIL - 0.28% Amazon.com, Inc., 4.75% due 02/01/2009 1,996,000 2,018,455 ----------- TOTAL CONVERTIBLE BONDS (Cost: $1,396,973) $ 2,018,455 ----------- MUNICIPAL BONDS - 0.03% WISCONSIN - 0.03% Badger Tobacco Asset Securitization Corp., 6.125% due 06/01/2027 250,000 244,365 ----------- TOTAL MUNICIPAL BONDS (Cost: $235,097) $ 244,365 ----------- COLLATERALIZED MORTGAGE OBLIGATIONS - 1.25% Ameriquest Mortgage Securities, Inc., Series 2003-5, Class A2, 2.43% due 07/25/2033 250,000 250,561 Banc of America Mortgage Securities, Inc., Series 2003 F, Class 2A1, FRN 3.734% due 07/25/2033 732,872 740,451 Bear Stearns ARM Trust, Series 2003-2, FRN 3.703% due 01/25/2033 243,700 244,492 Series 2003-3, Class 2A2, FRN 4.210% due 05/25/2033 177,256 177,108 Chase Commercial Mortgage Securities Corp., Series 2000-2, Class C, FRN 7.928% due 07/15/2032 250,000 295,946 CS First Boston Mortgage Securities Corp., Series 2001-CF2, Class A2, FRN 5.935% due 02/15/2034 875,000 929,248 Series 2001-CF2, Class A3, FRN 6.24% due 02/15/2034 440,000 483,074 Series 2003-AR12, Class 2A2, FRN 4.377% due 04/25/2033 179,742 179,808 FHLMC Structured Pass Through Securities, T-41, Class 3A, 7.50% due 07/25/2032 468,025 512,488 First Investors Auto Owner Trust, Series 2002-A, Class A, FRN 3.46% due 12/15/2008 35,591 36,014 First Union National Bank Commercial Mortgage Trust, Series 2002- C1, Class A1, 5.585% due 02/12/2034 565,283 604,311 GE Capital Commercial Mortgage Corp., Series 2001-1, Class A1, FRN 6.079% due 05/15/2033 100,860 108,881 GMAC Commercial Mortgage Security, Inc., Series 1997-C1, Class A3, FRN 6.869% due 07/15/2029 375,000 414,747 Merrill Lynch Mortgage Investors, Inc., Series 1995-C2, Class A1, FRN 6.926% due 06/15/2021 221,108 223,319 Series 1997-C1, Class A3, 7.12% due 06/18/2029 312,252 339,867 Morgan Stanley Capital I, Inc.,Class A, FRN 1.78% due 07/14/2016 188,267 188,267 Residential Asset Security Corp., Series 1999-KS4, Class AI4, FRN 7.22% due 06/25/2028 309,378 325,011 Residential Funding Mortgage Securities II, Series 2001-HS2, Class A4, 6.43% due 04/25/2016 210,966 213,406 Salomon Brothers Commercial Mortgage Securities, Class A3, Series 2001-C1, 6.428% due 12/18/2035 750,000 833,296 Structured Asset Securities Corp., Series 1998-RF2, Class A, FRN 8.540% due 07/15/2027 435,358 480,746 Washington Mutual, Series 2003-AR1, Class A6, FRN 4.537% due 03/25/2033 109,720 109,787 Washington Mutual, Series 2003-AR6, Class A1, FRN 4.38% due 06/25/2033 1,394,520 1,405,869 ----------- TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost: $8,839,239) $ 9,096,697 ----------- ASSET BACKED SECURITIES - 0.59% ACLC Business Loan Receivables Trust, Series 2002-1A, Class A1, FRN 5.408% due 12/15/2022 153,613 155,272 California Infrastructure Development, Series 1997-1, Class A7, FRN 6.42% due 09/25/2008 439,030 466,962 Chase Funding Mortgage Loan, Series 2003-1, Class 1A3, FRN 3.14% due 07/25/2023 150,000 151,379 Chase Funding Mortgage Loan,Series 2003-2, Class 1A3, FRN 2.864% due 12/25/2024 190,000 190,503 Conseco Finance Securitizations, Series 2000-F, Class AF4, 7.67% due 09/15/2026 234,375 235,088 Government Lease Trust, Series 1999-GSA1, Class A2, 6.02% due 05/18/2005 1,396,791 1,438,336 GRCT Consumer Loan Trust, Series 2001-1A, Class 2BRV, FRN 6.251% due 02/15/2020 331,776 340,257 Mangrove Bay Pass Through Trust, FRN 6.102% due 07/15/2033 100,000 97,140 Onyx Acceptance Auto Trust, Series 2002-C, Class A4, 4.07% due 04/15/2009 300,000 309,160 Peco Energy Transition Trust, Series 1999-A, Class A7, FRN 6.13% due 03/01/2009 540,000 596,366 Sears Credit Account Master Trust, Series 1998-2, Class A, 5.25% due 10/16/2008 208,333 211,784
The accompanying notes are an integral part of the financial statements. 179 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------------ ------------ ASSET BACKED SECURITIES - CONTINUED Vanderbilt Acquisition Loan Trust, Class A3, Series 2002-1, 5.70% due 09/07/2023 $ 125,000 $ 128,876 ------------ TOTAL ASSET BACKED SECURITIES (Cost: $4,275,683) $ 4,321,123 ------------ SHORT TERM INVESTMENTS - 13.75% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $100,105,153 $100,105,153 ------------ REPURCHASE AGREEMENTS - 4.85% *** Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40% to be repurchased at $35,318,785 on 01/02/2004, collateralized by $24,530,000 U.S. Treasury Bonds, 9.25% due 02/15/2016 (valued at $36,028,438, $ 35,318,000 $ 35,318,000 including interest) ------------ TOTAL INVESTMENTS (INCOME & VALUE TRUST)(Cost: $645,440,139) $727,996,552 ============
BALANCED TRUST
SHARES VALUE ------ ---------- COMMON STOCK - 60.69% AEROSPACE - 2.63% Lockheed Martin Corp. 29,650 $1,524,010 Raytheon Company * 21,700 651,868 United Technologies Corp. 20,300 1,923,831 ---------- 4,099,709 AUTOMOBILES - 0.75% General Motors Corp. 21,900 1,169,460 ---------- BANKING - 4.85% Bank of America Corp. 30,500 2,453,115 Bank One Corp. 33,200 1,513,588 Doral Financial Corp. 28,800 929,664 National City Corp. 24,500 831,530 Wells Fargo & Company 31,200 1,837,368 ---------- 7,565,265 BIOTECHNOLOGY - 1.13% Amgen, Inc. * 28,400 1,755,120 ---------- BROADCASTING - 0.67% Fox Entertainment Group, Inc., Class A * 36,000 1,049,400 ---------- BUILDING MATERIALS & CONSTRUCTION - 0.53% RPM International, Inc. 50,600 832,876 ---------- BUSINESS SERVICES - 1.16% Cadence Design Systems, Inc. * 26,400 474,672 Cendant Corp. * 24,100 536,707 First Data Corp. * 19,400 797,146 ---------- 1,808,525 CELLULAR COMMUNICATIONS - 0.61% Vodafone Group PLC, ADR 37,800 946,512 ---------- COMPUTERS & BUSINESS EQUIPMENT - 0.98% Hewlett-Packard Company * 66,600 1,529,802 ---------- COSMETICS & TOILETRIES - 2.15% Avon Products, Inc. 17,200 1,160,828 The Procter & Gamble Company 21,900 2,187,372 ---------- 3,348,200 CRUDE PETROLEUM & NATURAL GAS - 0.76% Anadarko Petroleum Corp. 23,400 1,193,634 ---------- ELECTRICAL EQUIPMENT - 0.99% General Electric Company 50,000 1,549,000 ---------- ELECTRIC UTILITIES - 1.70% Dominion Resources, Inc. 20,800 1,327,664 Entergy Corp. 23,100 1,319,703 ---------- 2,647,367 FINANCIAL SERVICES - 4.47% American Express Company, 19,800 954,954 Bear Stearns Companies, Inc. 12,400 991,380 Citigroup, Inc. 61,800 2,999,772 Federal National Mortgage Association 27,000 2,026,620 ---------- 6,972,726 FOOD & BEVERAGES - 1.60% General Mills, Inc. * 26,500 1,200,450 Kellogg Company 27,900 1,062,432 PepsiCo, Inc. 4,900 228,438 ---------- 2,491,320 HEALTHCARE PRODUCTS - 1.83% Guidant Corp. 17,300 1,041,460 Johnson & Johnson 13,000 671,580 Stryker Corp. 13,400 1,139,134 ---------- 2,852,174 HEALTHCARE SERVICES - 0.82% McKesson Corp. * 39,800 1,279,968 ---------- HOMEBUILDERS - 0.32% KB HOME 6,900 500,388 ---------- HOTELS & RESTAURANTS - 1.25% Marriott International, Inc., Class A 26,100 1,205,820 McDonald's Corp. 30,200 749,866 ---------- 1,955,686 HOUSEHOLD PRODUCTS - 0.43% Newell Rubbermaid, Inc. 29,300 667,161 ---------- INSURANCE - 4.31% Aetna, Inc. 14,300 966,394 AFLAC, Inc. 26,400 955,152 CIGNA Corp. * 21,600 1,242,000 RenaissanceRe Holdings, Ltd. 34,800 1,706,940 W.R. Berkley Corp. 53,100 1,855,845 ---------- 6,726,331 INTERNATIONAL OIL - 1.10% ConocoPhillips 26,100 1,711,377 ----------
The accompanying notes are an integral part of the financial statements. 180 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ----------- INTERNET SOFTWARE - 1.81% Cisco Systems, Inc. * 92,500 $ 2,246,825 Symantec Corp. * 16,600 575,190 ----------- 2,822,015 LEISURE TIME - 0.78% The Walt Disney Company * 51,900 1,210,827 ----------- MANUFACTURING - 1.11% Tyco International, Ltd. * 65,400 1,733,100 ----------- PAPER - 0.73% Georgia-Pacific Corp. 37,100 1,137,857 ----------- PETROLEUM SERVICES - 2.69% Baker Hughes, Inc. 32,500 1,045,200 Exxon Mobil Corp. 18,800 770,800 Halliburton Company 40,050 1,041,300 Valero Energy Corp. 28,800 1,334,592 ----------- 4,191,892 PHARMACEUTICALS - 4.20% Abbott Laboratories 34,000 1,584,400 Pfizer, Inc. 85,800 3,031,314 Wyeth 45,600 1,935,720 ----------- 6,551,434 PUBLISHING - 0.80% McGraw-Hill Companies, Inc. 17,900 1,251,568 ----------- RETAIL TRADE - 4.87% Bed Bath & Beyond, Inc. * 51,200 2,219,520 Costco Wholesale Corp. * 35,500 1,319,890 CVS Corp. 21,600 780,192 Home Depot, Inc. 44,350 1,573,981 The Gap, Inc. * 41,100 953,931 Wal-Mart Stores, Inc. 14,100 748,005 ----------- 7,595,519 SEMICONDUCTORS - 3.56% Altera Corp. * 36,700 833,090 Applied Micro Circuits Corp. * 129,600 775,008 Intel Corp. 23,900 769,580 Linear Technology Corp. 33,900 1,426,173 Microchip Technology, Inc. 14,200 473,712 QLogic Corp. * 13,200 681,120 Xilinx, Inc. * 15,200 588,848 ----------- 5,547,531 SOFTWARE - 2.76% BEA Systems, Inc. * 41,200 506,760 Microsoft Corp. 138,200 3,806,028 ----------- 4,312,788 TELEPHONE - 0.59% ALLTEL Corp. 19,800 922,284 ----------- TOBACCO - 1.01% Altria Group, Inc. 28,900 1,572,738 ----------- TRUCKING & FREIGHT - 0.74% CNF, Inc. 33,900 1,149,210 ----------- TOTAL COMMON STOCK (Cost: $85,200,579) $94,650,764 -----------
PRINCIPAL AMOUNT VALUE ----------- ----------- U.S. TREASURY OBLIGATIONS - 5.90% U.S. TREASURY BONDS - 0.67% 5.375% due 02/15/2031 $ 1,000,000 1,042,852 ----------- U.S. TREASURY NOTES - 5.23% 1.625% due 04/30/2005 1,000,000 1,003,008 3.00% due 01/31/2004 3,900,000 3,906,092 5.00% due 08/15/2011 900,000 963,141 5.75% due 11/15/2005 700,000 751,570 7.25% due 05/15/2004 1,500,000 1,534,218 ----------- 8,158,029 TOTAL U.S. TREASURY OBLIGATIONS (Cost: $9,242,505) $ 9,200,881 ----------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 13.89% TENNESSEE VALLEY AUTHORITY - 0.55% 4.70% due 07/15/2033 1,000,000 860,346 ----------- FEDERAL HOME LOAN MORTGAGE CORPORATION - 0.69% 5.875% due 03/21/2011 1,000,000 1,083,922 ----------- FEDERAL NATIONAL MORTGAGE ASSOCIATION - 11.17% 4.625% due 05/01/2013 1,000,000 973,214 4.75% due 03/15/2004 2,500,000 2,518,332 5.00% due 05/01/2018 1,188,906 1,214,128 5.50% due 02/15/2006 - 03/01/2033 4,687,977 4,837,195 6.00% due 10/01/2013 - 11/01/2032 2,957,733 3,073,362 6.50% due 11/01/2028 - 01/01/2032 2,353,798 2,463,300 6.625% due 11/15/2030 1,250,000 1,421,108 7.00% due 12/01/2029 863,052 914,549 ----------- 17,415,188 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 1.48% 6.00% due 11/15/2032 802,878 835,281 6.50% due 12/15/2028 248,147 262,019 7.00% due 02/15/2028 809,228 863,842 7.50% due 12/15/2030 328,115 352,162 ----------- 2,313,304 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $21,397,233) $21,672,760 ----------- CORPORATE BONDS - 6.76% CABLE AND TELEVISION - 1.37% Comcast Corp., Class A, 5.30% due 01/15/2014 1,000,000 996,679 Cox Communications, Inc., 6.75% due 03/15/2011 1,000,000 1,132,916 ----------- 2,129,595 CELLULAR COMMUNICATIONS - 0.72% Telus Corp., 7.50% due 06/01/2007 1,000,000 1,119,144 ----------- DRUGS & HEALTH CARE - 0.70% Merck & Company, Inc., 6.40% due 03/01/2028 1,000,000 1,099,023 ----------- FINANCIAL SERVICES - 2.68% General Electric Capital Corp., 5.45% due 01/15/2013 1,000,000 1,040,327
The accompanying notes are an integral part of the financial statements. 181 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------------ ------------ Goldman Sachs Group, Inc., 4.75% due 07/15/2013 $ 1,000,000 $ 974,571 Household Finance Corp., 6.50% due 01/24/2006 1,000,000 1,081,476 National Rural Utilities Cooperative Finance Corp., 5.75% due 08/28/2009 1,000,000 1,083,550 ------------ 4,179,924 FOOD & BEVERAGES - 0.64% Cadbury Schweppes US Finance LLC, 5.125% due 10/01/2013 1,000,000 993,488 ------------ RETAIL GROCERY - 0.65% Kroger Company, 5.50% due 02/01/2013 1,000,000 1,017,093 ------------ TOTAL CORPORATE BONDS (Cost: $10,130,818) $ 10,538,267 ------------ MUNICIPAL BONDS - 0.59% ILLINOIS - 0.59% Illinois State, Taxable Pension, 5.10% due 06/01/2033 1,000,000 914,680 ------------ TOTAL MUNICIPAL BONDS (Cost: $905,783) $ 914,680 ------------ SHORT TERM INVESTMENTS - 8.97% Federal National Mortgage Association Discount Notes, 1.00% due 02/18/2004 $ 4,000,000 $ 3,994,776 Federal National Mortgage Association Discount Notes, Series BB, 1.05% due 01/15/2004 10,000,000 9,995,917 ------------ $ 13,990,693 REPURCHASE AGREEMENTS - 3.20% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at $4,991,194 on 01/02/2004, collateralized by $3,565,000 U.S. Treasury Bonds, 8.50% due 02/15/2020 (valued at $5,091,266, including interest) $ 4,991,000 $ 4,991,000 ------------ TOTAL INVESTMENTS (BALANCED TRUST) (Cost: $145,858,611) $155,959,045 ============
GLOBAL ALLOCATION TRUST
SHARES VALUE ------ ---------- COMMON STOCK - 74.03% AUSTRALIA - 0.97% Austrailia Gas Light Company, Ltd. * 7,839 $ 66,284 Australia and New Zealand Bank Group Ltd. * 10,370 138,047 QBE Insurance Group, Ltd. * 19,052 152,059 Rio Tinto, Ltd. * 2,086 58,428 Westpac Banking Corp., Ltd. * 26,935 324,289 Woolworths, Ltd. * 7,036 62,514 ---------- 801,621 BELGIUM - 0.30% Fortis * 12,470 250,443 ---------- BERMUDA - 1.40% Ingersoll-Rand Company, Class A 10,400 705,952 Willis Group Holdings, Ltd. 6,900 235,083 XL Capital, Ltd., Class A 2,800 217,140 ---------- 1,158,175 CANADA - 1.05% Alcan Aluminum, Ltd. - USD * 4,600 215,593 Bank Nova Scotia Halifax 3,000 152,745 BCE, Inc. 5,300 118,520 Canadian National Railway Company-CAD 2,000 126,901 Magna International, Inc. 800 64,404 Toronto Dominion Bank Ontario 5,800 194,283 ---------- 872,446 FINLAND - 0.62% Nokia AB Oyj * 20,450 353,251 UPM-Kymmene Oyj * 8,200 156,214 ---------- 509,465 FRANCE - 2.50% Aventis SA * 5,758 380,151 BNP Paribas SA * 5,203 327,252 Cap Gemini SA * 3,083 136,771 Compagnie De Sanit Gobain * 1,857 90,805 France Telecom SA * 7,100 202,708 Sanofi-Synthelabo SA * 911 68,524 Suez SA * 6,177 123,979 Total SA, B Shares * 3,357 623,451 Unibail * 1,254 117,471 ---------- 2,071,112 GERMANY - 0.16% Allianz AG * 552 69,605 Bayer AG * 2,098 61,379 ---------- 130,984 HONG KONG - 0.12% Cheung Kong Holdings, Ltd. * 13,000 102,979 ---------- IRELAND - 0.75% Bank of Ireland - London * 29,101 395,991 CRH PLC - London * 11,041 226,055 ---------- 622,046 ITALY - 0.93% Assicurazioni Generali SPA * 4,172 110,387 Eni SPA * 18,498 348,666 UniCredito Italiano SPA * 57,115 307,998 ---------- 767,051 JAPAN - 4.42% Aiful Corp. * 1,550 113,427 Canon, Inc. * 3,000 139,730 Fuji Photo Film Company, Ltd. 5,000 161,478 Funai Electric Company, Ltd. * 500 68,652 Honda Motor Company * 10,200 453,185 Hoya Corp. * 900 82,662 Kao Corp. * 9,000 183,133 Keyence Corp. * 200 42,171 Mitsubishi Corp. * 13,000 137,845
The accompanying notes are an integral part of the financial statements. 182 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- JAPAN - CONTINUED Mitsubishi Tokyo Financial Group, Inc. * 12 $ 93,639 Mitsui Fudosan Company * 4,000 36,141 Murata Manufacturing Company, Ltd. * 1,200 64,853 Nintendo Company, Ltd. * 2,900 270,687 Nippon Telegraph & Telephone Corp. * 25 120,642 Nippon Unipac Holding * 6 30,970 NTT DoCoMo, Inc. * 65 147,431 Rohm Company * 1,300 152,406 Sekisui House, Ltd. * 11,000 113,660 Sompo Japan Insurance * 25,000 205,582 Sumitomo Chemical Company, Ltd. * 13,000 53,633 Sumitomo Mitsui Financial Group, Inc. * 22 117,254 Takeda Chemical Industries, Ltd. * 7,300 289,588 Takefuji Corp. * 770 36,008 Toppan Printing Company * 6,000 62,445 Toyota Industries Corp. * 4,900 104,051 Toyota Motor Corp. * 9,300 314,239 West Japan Railway * 18 70,733 ---------- 3,666,245 NETHERLANDS - 1.90% ABN AMRO Holdings NV * 10,775 251,834 Koninklijke (Royal) Philips Electronics NV * 7,204 210,125 Reed Elsevier NV * 26,097 323,877 TNT Post Group NV * 12,759 298,526 VNU NV * 10,119 319,374 Wolters Kluwer NV * 10,719 167,467 ---------- 1,571,203 PORTUGAL - 0.21% Electricidade De Portugal * 17,498 46,077 Portugal Telecom * 12,720 127,892 ---------- 173,969 SPAIN - 0.70% Banco Bilbao Vizcaya Argentaria SA * 20,625 284,552 Banco Santander Central, Hispano SA * 11,764 139,179 Telefonica SA * 10,819 158,670 ---------- 582,401 SWEDEN - 1.14% Electrolux AB, Series B * 5,200 114,225 Hennes & Mauritz AB, Series B * 5,200 123,624 Nordea AB * 28,000 210,210 Svenska Cellulosa * 5,500 224,808 Svenska Handelsbanken AB, A Shares * 5,400 110,361 Swedish Match AB * 16,000 163,497 ---------- 946,725 SWITZERLAND - 1.92% Adecco SA * 2,517 161,724 Givaudan AG * 197 102,218 Holcim, Ltd. * 2,394 111,448 Nestle SA * 2,495 623,095 Novartis AG-Reg Shares * 2,993 135,825 Roche Holding AG-Genusschein * 3,722 375,268 Swiss Reinsurance * 1,143 77,136 ---------- 1,586,714 UNITED KINGDOM - 7.92% AstraZeneca Group PLC * 5,035 240,871 Barclays PLC * 43,670 388,402 BICC PLC * 10,501 40,957 BOC Group PLC * 5,487 83,597 BP PLC * 76,923 622,021 BT Group PLC * 43,526 146,263 Carlton Communications PLC * 16,749 68,765 Centrica PLC * 40,647 153,095 Compass Group PLC * 17,394 117,987 Diageo PLC * 32,273 423,426 Electrocomponents PLC * 16,260 94,331 Gallaher Group * 31,350 335,768 GlaxoSmithKline PLC * 23,722 542,016 HSBC Holdings PLC * 11,214 175,754 Invensys PLC * 86,493 28,177 Kesa Electricals PLC * 18,595 85,389 Kingfisher PLC * 36,706 182,479 National Grid Transco PLC * 33,183 237,082 Rentokil Initial PLC * 47,585 161,389 Rio Tinto PLC * 6,640 182,888 Rolls-Royce Group PLC * 43,179 136,619 Royal Bank of Scotland PLC * 15,806 464,411 Scottish Hydro * 17,637 211,880 Shell Transport & Trading Company PLC * 61,372 455,189 Tesco PLC * 71,934 330,966 Vodafone Group PLC * 265,219 655,700 ---------- 6,565,422 UNITED STATES - 47.02% AFLAC, Inc. 4,800 173,664 Allergan, Inc. 10,400 798,824 American Electric Power, Inc. 2,700 82,377 American International Group, Inc. 8,100 536,868 American Standard Companies, Inc. * 3,400 342,380 Anadarko Petroleum Corp. 2,800 142,828 Anthem, Inc. * 6,500 487,500 Baxter International, Inc. * 7,400 225,848 Biomet, Inc. 4,700 171,127 Bristol-Myers Squibb Company * 25,200 720,720 Burlington Northern Santa Fe Corp. 30,600 989,910 Cardinal Health, Inc. 4,900 299,684 Cephalon, Inc. * (a) 6,500 314,665 Citigroup, Inc. 28,900 1,402,806 CMS Energy Corp. 13,100 111,612 ConocoPhillips 8,000 524,560 Costco Wholesale Corp. * 15,500 576,290 Dell, Inc. * 6,200 210,552 Delta Air Lines, Inc. * 12,000 141,720 Dominion Resources, Inc. 3,500 223,405 Eastman Chemical Company * 5,100 201,603 Exelon Corp. 10,300 683,508 Exxon Mobil Corp. 21,000 861,000 Federal Home Loan Mortgage Corp. 14,300 833,976 First Data Corp. * 9,000 369,810 FirstEnergy Corp. 14,300 503,360 FleetBoston Financial Corp. * 3,900 170,235 Gannett Company, Inc. 3,100 276,396 Genzyme Corp. * 8,700 429,258 Greenpoint Financial Corp. 16,950 598,674 Hartford Financial Services Group, Inc. 5,600 330,568 Hewlett-Packard Company * 8,400 192,948 Illinois Tool Works, Inc. 9,900 830,709 J.P. Morgan Chase & Company * 22,700 833,771 Johnson & Johnson 8,300 428,778 Johnson Controls, Inc. * 2,800 325,136 Kerr-McGee Corp. * 2,700 125,523 Kimberly-Clark Corp. 8,400 496,356
The accompanying notes are an integral part of the financial statements. 183 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- UNITED STATES - CONTINUED Kohl's Corp. * 6,600 $ 296,604 Linear Technology Corp. 11,500 483,805 Martin Marietta Materials, Inc. 10,800 507,276 Masco Corp. 28,500 781,185 McGraw-Hill Companies, Inc. 5,100 356,592 MeadWestvaco Corp. 7,800 232,050 Mellon Financial Corp. 19,400 622,934 Mettler-Toledo International, Inc. * 200 8,442 Microsoft Corp. 39,000 1,074,060 Morgan Stanley 15,000 868,050 Mylan Laboratories, Inc. 28,450 718,647 Newell Rubbermaid, Inc. 4,300 97,911 Nextel Communications, Inc., Class A * 56,000 1,571,360 Omnicom Group, Inc. * 9,000 785,970 Pentair, Inc. 7,900 361,030 PNC Financial Services Group 6,200 339,326 Progress Energy, Inc. 3,500 158,410 Quest Diagnostics, Inc. 2,600 190,086 SBC Communications, Inc. 12,200 318,054 Sempra Energy * 9,800 294,588 SICOR, Inc. * 13,300 361,760 The Boeing Company * 9,900 417,186 The Interpublic Group of Companies, Inc. 7,400 115,440 The TJX Companies, Inc. 11,300 249,165 Time Warner, Inc. * 26,600 478,534 TXU Corp. * 6,400 151,808 UBS Emerging Markets Debt Fund * (c) 16,340 709,011 UBS Emerging Markets Equities Fund * (c) 250,650 3,097,134 UBS High Yield Fund * (c) 145,312 2,413,116 United Technologies Corp. 2,400 227,448 UnitedHealth Group, Inc. 15,500 901,790 Viacom, Inc., Class B 5,900 261,842 Viad Corp. * 8,100 202,500 Wells Fargo & Company 19,500 1,148,355 Westwood One, Inc. * 6,000 205,260 Wyeth 23,300 989,085 ------------ 38,964,763 TOTAL COMMON STOCK (Cost: $51,951,080) 61,343,764 ------------ PREFERRED STOCK - 0.10% AUSTRALIA - 0.10% News Corp., Ltd. - Limited Voting Shares * 10,625 80,001 ------------ TOTAL PREFERRED STOCK (Cost: $63,110) $ 80,001 ------------
PRINCIPAL AMOUNT VALUE ------ ----- U.S. TREASURY OBLIGATIONS - 6.20% U.S. TREASURY BONDS - 2.09% 6.25% due 05/15/2030 $ 955,000 $ 1,102,055 6.875% due 08/15/2025 285,000 348,646 8.00% due 11/15/2021 210,000 283,615 ------------ 1,734,316 U.S. TREASURY NOTES - 4.11% 1.50% due 07/31/2005 315,000 314,754 1.875% due 11/30/2005 1,370,000 1,372,569 2.00% due 08/31/2005 360,000 362,320 3.25% due 08/15/2008 910,000 915,545 4.25% due 08/15/2013 440,000 440,550 ------------ 3,405,738 TOTAL U.S. TREASURY OBLIGATIONS (Cost: $5,127,997) 5,140,054 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 6.71% FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.30% 5.00% due 11/01/2007 17,926 18,476 5.125% due 07/15/2012 490,000 511,821 5.50% due 04/01/2018 624,011 647,389 6.00% due 12/01/2017 - 01/01/2033 701,135 726,092 ------------ 1,903,778 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 4.02% 3.396% due 09/01/2033 37,992 38,343 4.60% due 11/01/2033 348,346 354,459 4.621% due 04/01/2033 46,188 47,423 5.027% due 02/01/2033 60,536 64,379 6.00% due 06/01/2014 - 10/01/2033 1,220,482 1,272,038 6.25% due 02/01/2011 65,000 71,855 6.50% due 04/01/2017 - 08/01/2032 1,127,837 1,182,381 7.00% due 05/01/2033 40,725 43,123 7.125% due 01/15/2030 215,000 258,969 ------------ 3,332,970 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.39% 5.00% due 12/20/2029 43,304 44,241 6.00% due 07/15/2029 270,326 281,379 ------------ 325,620 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $5,529,238) $ 5,562,368 ------------ FOREIGN GOVERNMENT OBLIGATIONS - 5.04% AUSTRIA - 0.42% 3.80% due 10/20/2013 110,000 132,829 5.875% due 07/15/2006 160,000 216,107 ------------ 348,936 BELGIUM - 0.13% 5.75% due 03/28/2008 80,000 109,908 ------------ CANADA - 0.26% 5.50% due 06/01/2009 130,000 107,362 6.00% due 06/01/2008 - 06/01/2011 108,000 91,115 8.00% due 06/01/2023 12,000 12,511 ------------ 210,988
The accompanying notes are an integral part of the financial statements. 184 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- DENMARK - 0.19% 4.00% due 08/15/2008 $ 920,000 $ 158,123 ------------ FINLAND - 0.29% 5.00% due 07/04/2007 50,000 66,652 5.75% due 02/23/2011 125,000 174,314 ------------ 240,966 FRANCE - 0.88% 5.50% due 04/25/2007 195,000 263,110 5.50% due 04/25/2010 181,000 248,279 5.50% due 04/25/2029 80,000 109,263 8.50% due 10/25/2019 61,000 110,290 ------------ 730,942 GERMANY - 1.32% 2.50% due 03/18/2005 72,000 90,938 4.50% due 07/04/2009 100,000 131,129 5.00% due 07/04/2012 218,000 290,655 6.00% due 01/05/2006 105,000 140,802 6.00% due 01/04/2007 77,000 105,136 6.50% due 07/04/2027 220,000 338,171 ------------ 1,096,831 ITALY - 0.43% 5.25% due 11/01/2029 54,000 69,800 5.50% due 11/01/2010 66,000 90,549 8.75% due 07/01/2006 138,000 197,242 ------------ 357,591 MEXICO - 0.04% 8.125% due 12/30/2019 25,000 27,937 ------------ NETHERLANDS - 0.32% 3.00% due 07/15/2006 75,000 94,846 5.00% due 07/15/2011 125,000 167,447 ------------ 262,293 SWEDEN - 0.48% 6.00% due 02/09/2005 960,000 137,848 8.00% due 08/15/2007 1,630,000 258,197 ------------ 396,045 UNITED KINGDOM - 0.28% 8.00% due 09/27/2013 55,000 122,833 8.00% due 12/07/2015 48,000 110,016 ------------ 232,849 TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost: $3,909,160) 4,173,409 ------------ FOREIGN BONDS - 0.35% AUSTRALIA - 0.35% Australia Commonwealth, 6.50% due 05/15/2013 134,000 107,278 9.00% due 09/15/2004 240,000 185,282 ------------ 292,560 TOTAL FOREIGN BONDS (Cost: $275,499) $ 292,560 ------------ CORPORATE BONDS - 3.71% ITALY - 0.02% Telecom Italia Capital, 5.25% due 11/15/2013 15,000 15,030 ------------ JAPAN - 0.06% SMFG Finance, 2.25% due 07/11/2005 3,000,000 52,434 ------------ UNITED STATES - 3.63% Anheuser Busch Company, Inc., 9.00% due 12/01/2009 25,000 31,699 AOL Time Warner, Inc., 7.625% due 04/15/2031 30,000 34,613 Avon Products, Inc., 7.15% due 11/15/2009 25,000 29,148 Bank of America Corp., 7.40% due 01/15/2011 40,000 46,913 Bank One Corp., 7.875% due 08/01/2010 35,000 42,042 Bombardier Capital, Inc., MTN, 6.125% due 06/29/2006 25,000 26,594 Burlington Northern Santa Fe Corp., 7.082% due 05/13/2029 25,000 28,040 Cendant Corp., 6.875% due 08/15/2006 25,000 27,429 Centex Corp., 9.75% due 06/15/2005 25,000 27,703 Citigroup, Inc., 7.25% due 10/01/2010 45,000 52,450 Citizens Communications Company, 9.25% due 05/15/2011 35,000 41,379 Comcast Cable Communications, 6.75% due 01/30/2011 25,000 27,823 Consolidated Edison Company of New York Inc., 7.50% due 09/01/2010 40,000 47,299 Countrywide Funding Corp., MTN, 3.25% due 05/21/2008 25,000 24,588 Credit Suisse First Boston USA, Inc., 6.50% due 01/15/2012 25,000 27,826 CS First Boston Mortgage Securities Corp., 7.00% due 11/25/2033 122,999 129,879 DLJ Commercial Mortgage Corp., Series A1A, FRN 6.08% due 03/10/2032 153,932 164,815 Series A1B, 6.46% due 03/10/2032 150,000 166,738 Eop Operating, LP, 7.00% due 07/15/2011 25,000 28,210 Erac USA Finance Co., 7.35% due 06/15/2008 55,000 62,838 European Investment Bank, 4.875% due 09/06/2006 25,000 26,547 First Union National Bank, Series BNKT, 7.80% due 08/18/2010 35,000 42,226 Ford Motor Company, 7.45% due 07/16/2031 70,000 70,736 Ford Motor Credit Company, 5.80% due 01/12/2009 70,000 72,090 General Electric Capital Corp., MTN, Series A, 6.00% due 06/15/2012 95,000 103,023 General Motors Acceptance Corp., 6.875% due 09/15/2011 30,000 32,314 8.00% due 11/01/2031 30,000 33,689
The accompanying notes are an integral part of the financial statements. 185 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- UNITED STATES - CONTINUED Goldman Sachs Group, Inc., 6.875% due 01/15/2011 $ 25,000 $ 28,390 Harley Davidson Funding Corp., Medium Term Note, 3.625% due 12/15/2008 25,000 24,937 Household Finance Corp., 6.75% due 05/15/2011 30,000 33,772 ICI Wilmington, Inc., 4.375% due 12/01/2008 25,000 24,906 Intermediate American Development Bank, 5.75% due 02/26/2008 25,000 27,452 International Bank For Reconstruction & Development, 4.375% due 09/28/2006 30,000 31,642 J P Morgan Commercial Mortgage Finance Corp., 7.325% due 07/15/2031 101,595 108,238 7.40% due 07/15/2031 200,000 228,902 Kraft Foods, Inc., 5.625% due 11/01/2011 25,000 26,341 LB Commercial Conduit Mortgage Trust, 6.41% due 06/15/2031 111,927 118,857 Merrill Lynch Mortgage Investors, Inc., 1.00% due 08/25/2028 1,719,610 28,817 Morgan Stanley Dean Witter, 6.75% due 04/15/2011 40,000 45,257 Morgan Stanley Dean Witter Capital Class A1, 7.42% due 11/15/2036 144,640 160,628 Class A2, 7.57% due 11/15/2036 150,000 175,471 Pemex Project Funding Master Trust, 8.00% due 11/15/2011 30,000 33,525 Philip Morris Companies, Inc., 7.75% due 01/15/2027 25,000 26,974 Phillips Petroleum Company, 8.75% due 05/25/2010 25,000 31,230 Reliant Energy Transport Bond Company, 5.63% due 09/15/2015 125,000 133,060 Rio Tinto Finance USA, Ltd., 2.625% due 09/30/2008 25,000 23,847 Safeway, Inc., 3.80% due 08/15/2005 25,000 25,526 Sprint Capital Corp., 8.375% due 03/15/2012 25,000 29,195 The Kroger Company, 7.50% due 04/01/2031 25,000 28,807 Unilever Capital, 7.125% due 11/01/2010 25,000 29,065 USA Education, Inc., 5.625% due 04/10/2007 25,000 27,092 Verizon New England, Inc., 6.50% due 09/15/2011 25,000 27,547 Wells Fargo Bank NA, 6.45% due 02/01/2011 35,000 39,299 Wyeth, 5.25% due 03/15/2013 35,000 35,629 ------------ 3,003,057 TOTAL CORPORATE BONDS (Cost: $3,019,725) $ 3,070,521 ------------ ASSET BACKED SECURITIES - 0.26% California Infrastructure Development, Series 1997-1, Class A7, FRN 6.42% due 09/25/2008 $ 131,709 $ 140,088 RAFC Asset Backed Trust, 5.115% due 11/25/2029 74,905 76,938 ------------ 217,026 TOTAL ASSET BACKED SECURITIES (Cost: $217,836) 217,026 ------------ SHORT TERM INVESTMENTS - 0.35% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) 292,050 $ 292,050 ------------ REPURCHASE AGREEMENTS - 3.25% Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.40%, to be repurchased at $2,694,060 on 01/02/2004, collateralized by $2,675,000 U.S. Treasury Bonds, 5.250% due 02/15/2029 (valued at $2,749,397, including interest) $ 2,694,000 $ 2,694,000 ------------ TOTAL INVESTMENTS (GLOBAL ALLOCATION TRUST) (Cost: $73,079,695) $ 82,865,753 ============
The accompanying notes are an integral part of the financial statements. 186 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) HIGH YIELD TRUST
SHARES VALUE ------ ----- COMMON STOCK - 0.27% INTERNET CONTENT - 0.03% Globix Corp. * 83,945 $ 335,780 ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.24% Maxcom Telecomunicaciones SA * MXN 170,850 1,709 Maxcom Telecomunicaciones SA, Series B * 10,531 105 Maxcom Telecomunicaciones SA * 220,347 2,203 Song Networks Holdings AB * 255,233 2,395,205 Viatel Holding, Ltd. * 10,147 22,323 ------------ 2,421,545 TELEPHONE - 0.00% Ventelo * 35,092 0 XO Communications Inc. * (a) 4,585 26,364 ------------ 26,364 TOTAL COMMON STOCK (Cost: $11,070,179) $ 2,783,689 ------------ PREFERRED STOCK - 2.04% BROADCASTING - 1.17% CSC Holdings, Inc., Series M (a) 80,750 8,478,750 Paxson Communications Corp. JR Exchangeable Preferred PIK * 347 3,201,075 Paxson Communications Corp. JR Preferred Convertible PIK * 30 238,583 ------------ 11,918,408 CELLULAR COMMUNICATIONS - 0.13% Alamosa Holdings, Inc. * 4,080 1,305,637 ------------ ELECTRONICS - 0.42% TNP Enterprises, Inc., Series D * 39,480 4,293,450 ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.32% Dobson Communications Corp. * 2,894 3,118,285 Intermedia Communications, Inc, Series B * (a) 970 46,075 McLeodUSA, Inc., Class A * (a) 16,663 126,972 Song Networks Holdings AB * 27,635 0 ------------ 3,291,332 TOTAL PREFERRED STOCK (Cost: $20,297,953) $ 20,808,827 ------------ WARRANTS - 0.01% BROADCASTING - 0.00% XM Satellite Radio, Inc., (Expiration date 03/15/2010; strike price $49.50) * 1,295 27,519 ------------ ELECTRONICS - 0.00% SW Acquisition, (Expiration date 04/01/2011; strike price $0.01) * 1,975 20 ------------ STEEL - 0.00% Republic Technologies International LLC, Class D, (Expiration date 07/15/2009; strike price $.01) * 1,315 13 ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.00% Maxcom Telecomunicaciones, (Expiration date 04/01/2007; strike price $0.01) * 1,675 167 McLeodUSA, Inc., (Expiration date 04/16/2007; strike price $1.354) * 36,926 18,648 ------------ 18,815 TELEPHONE - 0.01% Occidente y Caribe Celular SA, (Expiration date 03/15/2004; strike price $1.00) * 15,400 154 XO Communications Inc., (Expiration date 01/16/2010; strike price $6.25) * 9,172 17,885 (Expiration date 01/16/2010; strike price $7.50) * 6,878 11,693 (Expiration date 01/16/2010; strike price $10.00) * 6,878 7,566 ------------ 37,298 TOTAL WARRANTS (Cost: $224,646) $ 83,665 ------------ FOREIGN GOVERNMENT OBLIGATIONS - 16.42% FEDERAL REPUBLIC OF BRAZIL - 3.92% 2.00% due 04/15/2009 1,438,462 1,347,838 FRN, 2.06% due 04/15/2012 2,400,000 2,031,600 FRN, 2.0625% due 04/15/2012 7,400,000 6,641,500 FRN 8.00% due 04/15/2014 (a) 18,434,208 18,148,478 10.125% due 05/15/2027 675,000 715,500 11.00% due 01/11/2012 - 08/17/2040 5,705,000 6,341,500 12.25% due 03/06/2030 3,900,000 4,855,500 ------------ 40,081,916 NATIONAL REPUBLIC OF BULGARIA - 0.34% FRN 7.0625% due 07/28/2024 1,100,000 1,093,400 8.25% due 01/15/2015 2,000,000 2,375,600 ------------ 3,469,000 REPUBLIC OF COLOMBIA - 0.84% 9.75% due 04/23/2009 1,250,000 1,378,750 10.00% due 01/23/2012 4,000,000 4,380,000 11.75% due 02/25/2020 2,350,000 2,831,750 ------------ 8,590,500 GOVERNMENT OF COSTA RICA - 0.15% 9.00% due 03/01/2011 1,350,000 1,565,017 ------------ REPUBLIC OF ECUADOR - 0.62% FRN, 7.00% due 08/15/2030 1,875,000 1,443,750 12.00% due 11/15/2012 5,000,000 4,862,500 ------------ 6,306,250 GOVERNMENT OF MEXICO - 3.00% 6.375% due 01/16/2013 1,400,000 1,452,500 6.625% due 03/03/2015 3,100,000 3,208,500 7.50% due 04/08/2033 8,000,000 8,280,000 8.30% due 08/15/2031 160,000 180,400 8.375% due 01/14/2011 2,810,000 3,336,875 11.375% due 09/15/2016 1,500,000 2,126,250 11.50% due 05/15/2026 8,300,000 12,014,250 ------------ 30,598,775 GOVERNMENT OF MOROCCO - 0.72% FRN 2.187% due 01/01/2009 7,500,000 7,350,000 ------------ REPUBLIC OF PANAMA - 0.77% 4.75% VR due 07/17/2014 1,059,240 998,334 8.875% due 09/30/2027 2,500,000 2,625,000 9.375% due 01/16/2023 - 04/01/2029 3,800,000 4,260,125 ------------ 7,883,459 REPUBLIC OF PERU - 0.54% FRN 5.000% due 03/07/2017 2,608,500 2,425,905 9.125% due 02/21/2012 2,733,000 3,047,295 ------------ 5,473,200
The accompanying notes are an integral part of the financial statements. 187 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
Principal Amount VALUE ------ ----- REPUBLIC OF PHILIPPINES - 0.73% 10.625% due 03/16/2025 $ 6,700,000 $ 7,453,750 ------------ GOVERNMENT OF RUSSIA - 3.23% 5.00%, Step up to 7.50% on 3/31/2007 due 03/31/2030 19,980,000 19,195,785 8.25% due 03/31/2010 11,700,000 13,129,740 10.00% due 06/26/2007 550,000 646,333 ------------ 32,971,858 REPUBLIC OF TURKEY - 0.82% 11.00% due 01/14/2013 5,200,000 6,513,000 11.875% due 01/15/2030 1,375,000 1,863,125 ------------ 8,376,125 REPUBLIC OF VENEZUELA - 0.53% FRN, 2.125% due 12/18/2007 3,047,528 2,887,532 6.75% due 03/31/2020 300,000 277,500 FRN, 7.437% due 03/31/2007 499,980 473,881 9.25% due 09/15/2027 1,900,000 1,729,000 ------------ 5,367,913 REPUBLIC OF EL SALVADOR - 0.03% 7.75% due 01/24/2023 250,000 263,125 ------------ NATIONAL GOVERNMENT OF MALAYSIA - 0.18% 7.50% due 07/15/2011 1,600,000 1,892,736 ------------ TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost: $160,657,651) $167,643,624 ------------ CORPORATE BONDS - 65.61% ADVERTISING - 0.43% RH Donnelley Finance Corp., Series I, 10.875% due 12/15/2012 1,425,000 1,690,406 Vertis, Inc., 9.75% due 04/01/2009 2,500,000 2,715,625 ------------ 4,406,031 AEROSPACE - 0.99% DRS Technologies Inc., 6.875% due 11/01/2013 3,000,000 3,082,500 Sequa Corp., Series B, 8.875% due 04/01/2008 3,750,000 4,068,750 Transdigm Funding Corp., 8.375% due 07/15/2011 2,750,000 2,925,313 ------------ 10,076,563 AGRICULTURE - 0.16% Hines Nurseries Inc., 10.25% due 10/01/2011 1,500,000 1,635,000 ------------ AIR TRAVEL - 0.43% Continental Airlines, Inc., 6.541% due 09/15/2008 2,504,383 2,352,632 6.80% due 07/02/2007 2,157,128 2,062,240 ------------ 4,414,872 AMUSEMENT & THEME PARKS - 0.18% Six Flags Inc., 9.625% due 06/01/2014 1,725,000 1,802,625 ------------ APPAREL & TEXTILES - 0.49% Interface, Inc., 10.375% due 02/01/2010 2,700,000 2,855,250 Levi Strauss & Company, 11.625% due 01/15/2008 (a) 1,300,000 848,250 12.25% due 12/15/2012 (a) 1,925,000 1,251,250 ------------ 4,954,750 AUTO PARTS - 1.16% ArvinMeritor, Inc., 8.75% due 03/01/2012 865,000 990,425 CSK Auto Inc., 12.00% due 06/15/2006 1,000,000 1,147,500 Eaglepincher, Inc., 9.75% due 09/01/2013 3,000,000 3,240,000 Keystone Automotive Operations, 9.75% due 11/01/2013 1,600,000 1,728,000 Tenneco Automotive, Inc., 11.625% due 10/15/2009 (a) 1,700,000 1,836,000 TRW Automotive, Inc., 9.375% due 02/15/2013 2,580,000 2,947,650 ------------ 11,889,575 AUTOMOBILES - 0.38% General Motors Corp., 7.125% due 07/15/2013 (a) 3,550,000 3,893,179 ------------ BROADCASTING - 4.51% Callahan Nordrhein Westfalen, 14.00% due 07/15/2010+++ 4,800,000 294,000 Charter Communications Holdings, 8.625% due 04/01/2009 (a) 1,500,000 1,308,750 10.00% due 04/01/2009 2,000,000 1,780,000 10.75% due 10/01/2009 1,850,000 1,697,375 zero coupon, Step up to 11.75% on 1/15/2005 due 01/15/2010 700,000 570,500 zero coupon, Step up to 11.75% on 05/15/2006 due 05/15/2011 4,525,000 3,031,750 zero coupon, Step up to 13.50% on 01/15/2006 due 01/15/2011 1,900,000 1,415,500 Charter Communications Holdings LLC, 8.25% due 04/01/2007 (a) 3,300,000 3,102,000 10.25% due 01/15/2010 1,400,000 1,253,000 CSC Holdings, Inc., 7.25% due 07/15/2008 3,100,000 3,224,000 Series B, 8.125% due 07/15/2009 320,000 344,000 9.875% due 02/15/2013 855,000 893,475 10.50% due 05/15/2016 640,000 732,800 Granite Broadcasting Corp., 9.75% due 12/01/2010 1,750,000 1,736,875 Nextmedia Operating, Inc., 10.75% due 07/01/2011 2,560,000 2,905,600 Pegasus Communications Corp., Series B, 9.75% due 12/01/2006 (a) 395,000 356,488 12.50% due 08/01/2007 480,000 453,600 Pegasus Satellite Communications, 12.375% due 08/01/2006 530,000 498,863 zero coupon, Step up to 13.50% on 03/01/2004 due 03/01/2007 (a) 600,000 507,750 Salem Communications Holding Corp., 9.00% due 07/01/2011 3,020,000 3,284,250 Spanish Broadcasting Systems Inc., 9.625% due 11/01/2009 3,300,000 3,522,750 Telewest Communications PLC, 9.875% due 02/01/2010 $ 650,000 403,000 zero coupon, Step up to 9.875% on 04/15/2004 due 04/15/2009 GBP 3,345,000 2,806,368 Vivendi Universal SA, 6.25% due 07/15/2008 3,350,000 3,546,812 9.25% due 04/15/2010 2,390,000 2,832,150
The accompanying notes are an integral part of the financial statements. 188 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- BROADCASTING - CONTINUED Young Broadcasting, Inc., Series B, 8.75% due 06/15/2007 $ 2,500,000 $ 2,562,500 10.00% due 03/01/2011 (a) 900,000 969,750 ------------ 46,033,906 BUILDING MATERIALS & CONSTRUCTION - 0.29% Atrium Comapnies Inc., 10.50% due 05/01/2009 1,350,000 1,444,500 Brand Services, Inc., 12.00% due 10/15/2012 1,005,000 1,162,031 Nortek, Inc., Series B, 8.875% due 08/01/2008 375,000 392,344 ------------ 2,998,875 BUSINESS SERVICES - 0.66% Encompass Services Corp., 10.50% due 05/01/2009+++ 1,300,000 16,250 Interep National Radio Sales, Inc., Series B, Class A, 10.00% due 07/01/2008 2,878,000 2,547,030 Iron Mountain, Inc., 7.75% due 01/15/2015 1,821,000 1,907,498 8.625% due 04/01/2013 2,135,000 2,305,800 ------------ 6,776,578 CABLE AND TELEVISION - 0.83% Avalon Cable LLC, 11.875% due 12/01/2008 381,277 402,247 Directv Holdings LLC, 8.375% due 03/15/2013 3,145,000 3,648,200 Mediacom Broadband LLC, 11.00% due 07/15/2013 (a) 2,725,000 3,058,813 Mediacom LLC/Mediacom Capital Corp., 9.50% due 01/15/2013 (a) 1,000,000 1,060,000 Renaissance Media Group, LLC, 10.00% due 04/15/2008 285,000 294,619 ------------ 8,463,879 CELLULAR COMMUNICATIONS - 3.78% Alamosa Delaware Inc., zero coupon, Step up to 12.0% on 07/31/2005 due 07/31/2009 1,256,000 1,130,400 Alamosa Delaware, Inc., 11.00% due 07/31/2010 (a) 1,625,000 1,763,125 American Tower Corp., Class A, 6.25% due 10/15/2009 (a) 4,140,000 4,160,700 9.375% due 02/01/2009 (a) 1,750,000 1,863,750 Crown Castle International Corp., 7.50% due 12/01/2013 1,150,000 1,155,750 9.375% due 08/01/2011 (a) 5,075,000 5,633,250 Nextel Communications, Inc., 7.375% due 08/01/2015 12,600,000 13,545,000 SBA Communications Corp., zero coupon, Step up to 9.75% on 12/15/2007 due 12/15/2011 2,550,000 1,797,750 10.25% due 02/01/2009 4,695,000 4,612,837 Spectrasite Inc., 8.25% due 05/15/2010 1,100,000 1,174,250 Ubquitel Operating Company, zero coupon, step up to 14.00% on 04/15/2005 due 04/15/2010 2,450,000 1,715,000 ------------ 38,551,812 CHEMICALS - 4.58% Acetex Corp., 10.875% due 08/01/2009 4,840,000 5,372,400 Avecia Group PLC, 11.00% due 07/01/2009 (a) 1,655,000 1,489,500 Equistar Chemicals LP, 10.125% due 09/01/2008 2,800,000 3,066,000 10.625% due 05/01/2011 1,335,000 1,475,175 Ethyl Corp., 8.875% due 05/01/2010 2,300,000 2,461,000 FMC Corp., 7.75% due 07/01/2011 500,000 520,000 10.25% due 11/01/2009 2,150,000 2,515,500 Huntsman Advanced Materials LLC, 11.00% due 07/15/2010 2,425,000 2,679,625 Huntsman ICI Chemicals, 10.125% due 07/01/2009 EUR 1,200,000 1,483,970 10.125% due 07/01/2009 (a) 4,220,000 4,346,600 Huntsman International LLC, 9.875% due 03/01/2009 415,000 454,425 ISP Chemco, Inc., Series B, 10.25% due 07/01/2011 1,235,000 1,389,375 10.625% due 12/15/2009 3,195,000 3,514,500 Lyondell Chemical Company, 9.50% due 12/15/2008 1,600,000 1,672,000 Series A, 9.625% due 05/01/2007 (a) 1,700,000 1,802,000 Series B, 9.875% due 05/01/2007 (a) 1,400,000 1,477,000 Methanex Corp., 8.75% due 08/15/2012 2,250,000 2,508,750 Millennium America, Inc., 9.25% due 06/15/2008 1,695,000 1,847,550 7.00% due 11/15/2006 (a) 890,000 912,250 Rhodia SA, 7.625% due 06/01/2010 (a) 1,250,000 1,200,000 8.875% due 06/01/2011 2,100,000 1,932,000 Westlake Chemical Corp., 8.75% due 07/15/2011 2,375,000 2,600,625 ------------ 46,720,245 CONSTRUCTION MATERIALS - 0.05% Nortek Holdings, Inc., Series B, 9.25% due 03/15/2007 530,000 544,575 ------------ CONTAINERS & GLASS - 2.01% Anchor Glass Container Corp., 11.00% due 02/15/2013 750,000 870,000 Owens Brockway Glass Container, 8.75% due 11/15/2012 935,000 1,041,356 Owens-Illinois, Inc., Series 2008, 7.35% due 05/15/2008 (a) 1,025,000 1,051,906 Owens-Illinois, Inc., Series 2010, 7.50% due 05/15/2010 (a) 3,910,000 4,012,638 Plastipak Holdings, Inc., 10.75% due 09/01/2011 5,045,000 5,612,563 Pliant Corp., 13.00% due 06/01/2010 2,545,000 2,328,675 Radnor Holdings, Inc., 11.00% due 03/15/2010 (a) 2,750,000 2,509,375 Stone Container Corp., 9.75% due 02/01/2011 2,825,000 3,121,625 ------------ 20,548,138 COSMETICS & TOILETRIES - 0.58% Jafra Cosmetics International, Inc., 10.75% due 05/15/2011 2,680,000 2,941,300 Playtex Products, Inc., 9.375% due 06/01/2011 3,000,000 3,030,000 ------------ 5,971,300
The accompanying notes are an integral part of the financial statements. 189 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- CRUDE PETROLEUM & NATURAL GAS - 0.63% Chesapeake Energy Corp., 8.125% due 04/01/2011 $ 5,833,571 $ 6,475,264 ------------ DOMESTIC OIL - 1.36% Houston Exploration Company, 7.00% due 06/15/2013 5,000,000 5,162,500 Magnum Hunter Resources, Inc., 9.60% due 03/15/2012 (a) 2,525,000 2,865,875 Stone Energy Corp., 8.25% due 12/15/2011 2,050,000 2,234,500 Swift Energy Company, 9.375% due 05/01/2012 2,800,000 3,080,000 Westport Resources Corp., 8.25% due 11/01/2011 535,000 588,500 ------------ 13,931,375 DRUGS & HEALTH CARE - 0.41% Aaipharma Inc., 11.00% due 04/01/2010 2,000,000 2,270,000 Columbia/HCA Healthcare Corp., 6.91% due 06/15/2005 780,000 821,629 7.69% due 06/15/2025 1,000,000 1,055,309 ------------ 4,146,938 ELECTRICAL EQUIPMENT - 0.86% BRL Universal Equipment, 8.875% due 02/15/2008 3,660,000 3,925,350 General Cable Corp., 9.50% due 11/15/2010 1,775,000 1,899,250 Wesco Distribution, Inc., 9.125% due 06/01/2008 (a) 2,850,000 2,949,750 ------------ 8,774,350 ELECTRIC UTILITIES - 3.38% AES Corp., 8.375% due 08/15/2007 (a) 375,000 379,688 8.50% due 11/01/2007 (a) 1,350,000 1,370,250 8.875% due 02/15/2011 (a) 340,000 370,600 9.375% due 09/15/2010 (a) 1,370,000 1,518,987 Allegheny Energy Supply Company, 10.25% due 11/15/2007 3,375,000 3,510,000 Avon Energy Partners Holdings, 7.05% due 12/11/2007 1,350,000 1,285,875 Calpine Corp., 8.50% due 05/01/2008 6,505,000 5,187,737 8.50% due 07/15/2010 - 02/15/2011 (a) 5,210,000 4,554,225 Edison Mission Energy, 7.73% due 06/15/2009 (a) 1,200,000 1,143,000 9.875% due 04/15/2011 (a) 1,000,000 1,040,000 10.00% due 08/15/2008 (a) 4,600,000 4,772,500 Mirant Americas Generation LLC, 8.50% due 10/01/2021+++ 2,275,000 1,922,375 Reliant Resources, Inc., 9.25% due 07/15/2010 3,750,000 3,975,000 9.50% due 07/15/2013 3,200,000 3,424,000 ------------ 34,454,237 ELECTRONICS - 0.30% Muzak LLC/Muzak Finance Corp., 9.875% due 03/15/2009 (a) 3,120,000 3,014,700 ------------ ENERGY - 0.28% NRG Energy, Inc., 8.00% due 12/15/2013 2,700,000 2,838,375 ------------ FINANCIAL SERVICES - 2.91% Ford Motor Credit Company, 7.25% due 10/25/2011 2,800,000 3,036,779 Istar Financial, Inc., 8.75% due 08/15/2008 2,195,000 2,535,225 Nexstar Finance Holdings LLC, zero coupon, step up to 11.375% on 04/01/2008 due 04/01/2013 2,525,000 1,846,406 Nexstar Finance Inc., 7.00% due 01/15/2014 1,700,000 1,708,500 Pemex Project Funding Master Trust, 9.125% due 10/13/2010 (a) 1,400,000 1,662,500 Targeted Return Index Securities Trust, 8.685% due 05/15/2013 13,765,714 15,228,322 Ucar Finance, Inc., 10.25% due 02/15/2012 (a) 3,180,000 3,657,000 ------------ 29,674,732 FOOD & BEVERAGES - 1.44% Ahold Finance USA, Inc., 8.25% due 07/15/2010 4,300,000 4,687,000 Del Monte Corp., 8.625% due 12/15/2012 600,000 657,000 Series B, 9.25% due 05/15/2011 1,500,000 1,657,500 Nash Finch Company, Series 2008, 8.50% due 05/01/2008 3,900,000 3,900,000 Pinnacle Foods Holding Corp., 8.25% due 12/01/2013 1,650,000 1,707,750 Swift & Company, 10.125% due 10/01/2009 2,000,000 2,120,000 ------------ 14,729,250 FOREST PRODUCTS - 0.40% Tembec Industries, Inc., 7.75% due 03/15/2012 1,270,000 1,263,650 8.50% due 02/01/2011 2,045,000 2,116,575 8.625% due 06/30/2009 650,000 669,500 ------------ 4,049,725 FURNITURE & FIXTURES - 0.39% Norcraft Company LP, 9.00% due 11/01/2011 3,650,000 3,942,000 ------------ GAS & PIPELINE UTILITIES - 2.60% Dynegy Holdings, Inc., 7.625% due 10/15/2026 600,000 518,250 9.875% due 07/15/2010 1,925,000 2,165,625 6.875% due 04/01/2011 (a) 3,260,000 3,003,275 El Paso Corp., MTN, 7.75% due 01/15/2032 (a) 1,500,000 1,278,750 7.80% due 08/01/2031 (a) 4,950,000 4,213,687 Gulfterra Energy Partners LP, 8.50% due 06/01/2010 663,000 752,505 10.625% due 12/01/2012 2,147,000 2,662,280 Northwest Pipeline Corp., 8.125% due 03/01/2010 535,000 593,850 Southern Natural Gas Company, 8.875% due 03/15/2010 1,180,000 1,327,500 Transcontinental Gas Pipe Line Corp., 8.875% due 07/15/2012 935,000 1,105,638 Williams Companies, Inc., 7.625% due 07/15/2019 700,000 732,375 7.875% due 09/01/2021 2,750,000 2,901,250 8.625% due 06/01/2010 600,000 673,500 8.75% due 03/15/2032 3,000,000 3,390,000 9.25% due 03/15/2004 1,210,000 1,225,125 ------------ 26,543,610
The accompanying notes are an integral part of the financial statements. 190 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- HEALTHCARE PRODUCTS - 0.44% Dade Behring Holdings, Inc., 11.91% due 10/03/2010 $ 2,050,000 $ 2,357,500 Medex, Inc., 8.875% due 05/15/2013 2,000,000 2,150,000 ------------ 4,507,500 HEALTHCARE SERVICES - 0.91% Ameripath, Inc., 10.50% due 04/01/2013 (a) 3,275,000 3,487,875 Extendicare Health Services Inc., 9.50% due 07/01/2010 2,000,000 2,220,000 Genesis Healthcare Corp., 8.00% due 10/15/2013 1,600,000 1,668,000 Team Health Inc., 12.00% due 03/15/2009 1,775,000 1,917,000 ------------ 9,292,875 HOMEBUILDERS - 1.06% KB HOME, 7.75% due 02/01/2010 2,130,000 2,257,800 Schuler Homes, Inc., 9.375% due 07/15/2009 2,850,000 3,206,250 10.50% due 07/15/2011 150,000 174,000 Toll Brothers, Inc., 8.25% due 02/01/2011 (a) 4,730,000 5,203,000 ------------ 10,841,050 HOTELS & RESTAURANTS - 3.81% Buffets Inc., 11.25% due 07/15/2010 1,300,000 1,394,250 Coast Hotels and Casinos, Inc., 9.50% due 04/01/2009 1,000,000 1,057,500 Felcor Lodging, LP, FRN 9.500% due 09/15/2008 2,550,000 2,754,000 Hilton Hotels Corp., 7.625% due 12/01/2012 515,000 578,731 7.95% due 04/15/2007 2,910,000 3,226,463 HMH Properties Inc., Series B, 7.875% due 08/01/2008 10,000 10,400 Series C, 8.45% due 12/01/2008 414,000 431,595 Host Marriott LP, REIT, 9.50% due 01/15/2007 1,050,000 1,168,125 Kerzner International, 8.875% due 08/15/2011 750,000 819,375 Meristar Hospitality Operating Partnership LP, REIT, 10.50% due 06/15/2009 2,500,000 2,712,500 MGM Mirage, Inc., 8.375% due 02/01/2011 (a) 2,700,000 3,057,750 Park Place Entertainment Corp., 7.875% due 03/15/2010 (a) 3,035,000 3,361,262 9.375% due 02/15/2007 2,175,000 2,463,187 Prime Hospitality Corp., Series B, 8.375% due 05/01/2012 2,190,000 2,261,175 Starwood Hotels & Resorts Worldwide, Inc., 7.375% due 05/01/2007 1,010,000 1,090,800 7.875% due 05/01/2012 4,675,000 5,259,375 Station Casinos, Inc., 8.375% due 02/15/2008 1,375,000 1,472,969 8.875% due 12/01/2008 2,985,000 3,089,475 Venetian Casino Resort LLC, 11.00% due 06/15/2010 2,355,000 2,731,800 ------------ 38,940,732 HOUSEHOLD PRODUCTS - 0.44% Sealy Mattress Company, 9.875% due 12/15/2007 (a) 4,375,000 4,528,125 ------------ INDUSTRIAL MACHINERY - 0.69% Case New Holland, Inc., 9.25% due 08/01/2011 2,825,000 3,164,000 Flowserve Corp., 12.25% due 08/15/2010 (a) 1,944,000 2,255,040 NMHG Holding Company, 10.00% due 05/15/2009 1,425,000 1,574,625 ------------ 6,993,665 INDUSTRIALS - 1.15% Blount International, Inc., 7.00% due 06/15/2005 1,475,000 1,482,375 Blount, Inc., 13.00% due 08/01/2009 1,750,000 1,885,625 Louisiana Pacific Corp., 8.875% due 08/15/2010 265,000 312,700 10.875% due 11/15/2008 1,520,000 1,808,800 Meritage Corp., 9.75% due 06/01/2011 990,000 1,106,325 NGC Corp., 7.125% due 05/15/2018 (a) 6,050,000 5,187,875 ------------ 11,783,700 INTERNATIONAL OIL - 0.43% Petronas Capital Ltd., 7.875% due 05/22/2022 1,075,000 1,266,935 Vintage Petroleum, Inc., 7.875% due 05/15/2011 (a) 1,290,000 1,360,950 9.75% due 06/30/2009 1,695,000 1,783,987 ------------ 4,411,872 INTERNET CONTENT - 0.09% Globix Corp., 11.00% due 05/01/2008 800,512 704,451 PSINet, Inc., 11.00% due 08/01/2009+++ 1,172,026 61,531 Series B, 10.00% due 02/15/2005+++ 2,995,550 157,266 ------------ 923,248 INVESTMENT COMPANIES - 0.37% JSG Funding PLC, 10.125% due 10/01/2012 2,675,000 3,759,645 ------------ LEISURE TIME - 2.04% Alliance Atlantis Communicatons, Inc., 13.00% due 12/15/2009 3,320,000 3,784,800 Doane Pet Care Company, 9.75% due 05/15/2007 (a) 3,550,000 3,177,250 Horseshoe Gaming LLC, Series B, 8.625% due 05/15/2009 5,350,000 5,650,937 International Game Technology, 8.375% due 05/15/2009 (a) 3,945,000 4,722,394 Pinnacle Entertainment Inc., 8.75% due 10/01/2013 (a) 3,400,000 3,459,500 ------------ 20,794,881 MANUFACTURING - 0.49% Park-Ohio Industries, Inc., 9.25% due 12/01/2007 1,650,000 1,641,750 Tekni Plex, Inc., Series B, 12.75% due 06/15/2010 (a) 3,116,000 3,396,440 ------------ 5,038,190 MEDICAL-HOSPITALS - 1.31% HCA, Inc., 8.75% due 09/01/2010 3,440,000 4,096,128 Psychiatric Solutions Inc., 10.625% due 06/15/2013 1,750,000 1,964,375
The accompanying notes are an integral part of the financial statements. 191 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- MEDICAL-HOSPITALS - CONTINUED Tenet Healthcare Corp., 6.50% due 06/01/2012 $ 3,065,000 $ 2,938,569 7.375% due 02/01/2013 325,000 326,625 Triad Hospitals, Inc., Series B, 8.75% due 05/01/2009 1,525,000 1,652,719 Vanguard Health Systems, Inc., 9.75% due 08/01/2011 2,225,000 2,414,125 ------------ 13,392,541 METAL & METAL PRODUCTS - 0.41% IMCO Recycling, Inc., 10.375% due 10/15/2010 2,300,000 2,363,250 Phelps Dodge Corp., 8.75% due 06/01/2011 1,525,000 1,861,790 ------------ 4,225,040 MINING - 0.19% Compass Minerals Group Inc., 10.00% due 08/15/2011 1,750,000 1,960,000 ------------ PAPER - 2.18% Appleton Papers, Inc., 12.50% due 12/15/2008 3,000,000 3,390,000 Bowater Inc., 6.50% due 06/15/2013 2,700,000 2,620,369 9.50% due 10/15/2012 1,275,000 1,444,431 Buckeye Technologies Inc., 9.25% due 09/15/2008 (a) 2,750,000 2,784,375 Georgia Pacific Corp., 8.875% due 02/01/2010 6,200,000 7,068,000 Pacifica Papers, Inc., 10.00% due 03/15/2009 3,175,000 3,365,500 Smurfit-Stone Container, 8.25% due 10/01/2012 1,425,000 1,546,125 ------------ 22,218,800 PETROLEUM SERVICES - 0.18% Hanover Compressor Company, 00.01% due 03/31/2007 2,500,000 1,837,500 ------------ PHARMACEUTICALS - 0.69% Athena Neurosciences, Inc., 7.25% due 02/21/2008 3,875,000 3,479,750 Valeant Pharmaceuticals, 7.00% due 12/15/2011 3,500,000 3,605,000 ------------ 7,084,750 PLASTICS - 0.67% Berry Plastics Corp., 10.75% due 07/15/2012 3,000,000 3,453,750 Resolution Performance Products, Inc., 13.50% due 11/15/2010 (a) 3,900,000 3,393,000 ------------ 6,846,750 PUBLISHING - 1.70% Dex Media, zero coupon, step up to 9.00% on 11/15/2008 due 11/15/2013 5,250,000 3,701,250 Dex Media East LLC, 12.125% due 11/15/2012 1,000,000 1,230,000 Dex Media West LLC, 8.50% due 08/15/2010 1,500,000 1,670,625 Hollinger Participation Trust, FRN 12.125% due 11/15/2010 3,558,442 4,225,650 Houghton Mifflin Company, zero coupon, Step up to 11.50% on 10/15/2008 due 10/15/2013 2,250,000 1,423,125 Mail-Well I Corp., Series B, 8.75% due 12/15/2008 (a) 3,225,000 3,216,937 Pei Holdings Inc., 11.00% due 03/15/2010 1,105,000 1,281,800 Yell Finance BV, 10.75% due 08/01/2011 (a) 488,000 570,960 ------------ 17,320,347 REAL ESTATE - 0.32% CB Richard Ellis Services, Inc., 11.25% due 06/15/2011 (a) 2,875,000 3,248,750 ------------ RETAIL TRADE - 2.64% Cole National Group, Inc., 8.625% due 08/15/2007 1,625,000 1,657,500 Eye Care Centers of America, Inc., 9.125% due 05/01/2008 3,525,000 3,525,000 Finlay Fine Jewelry Corp., 8.375% due 05/01/2008 1,500,000 1,552,500 Gap, Inc., 6.90% due 09/15/2007 625,000 689,844 FRN 8.800% due 12/15/2008 2,115,000 2,606,737 General Nutrition Companies, Inc., 8.50% due 12/01/2010 3,500,000 3,587,500 Home Interiors & Gifts, Inc., 10.125% due 06/01/2008 2,625,000 2,654,531 J.C. Penney Company, Inc., 6.875% due 10/15/2015 350,000 367,938 7.60% due 04/01/2007 385,000 424,944 7.95% due 04/01/2017 445,000 505,631 8.00% due 03/01/2010 1,160,000 1,329,650 9.00% due 08/01/2012 (a) 970,000 1,160,363 Rite Aid Corp., 6.875% due 08/15/2013 2,780,000 2,668,800 11.25% due 07/01/2008 2,500,000 2,787,500 Saks Inc., 7.00% due 12/01/2013 166,000 169,320 9.875% due 10/01/2011 (a) 1,050,000 1,249,500 ------------ 26,937,258 SANITARY SERVICES - 1.38% Allied Waste North America, Inc., 7.875% due 04/15/2013 (a) 1,870,000 2,024,275 Series B, 8.875% due 04/01/2008 4,925,000 5,516,000 Waste Management, Inc., 6.875% due 05/15/2009 1,280,000 1,430,761 7.125% due 10/01/2007 - 12/15/2017 2,675,000 3,003,701 7.375% due 08/01/2010 1,010,000 1,167,086 7.65% due 03/15/2011 805,000 937,741 ------------ 14,079,564 STEEL - 0.34% AK Steel Corp., 7.875% due 02/15/2009 3,875,000 3,400,312 National Steel Corp., Series D, 9.875% due 03/01/2009+++ 1,492,232 89,534 Republic Technologies International LLC/RTI Capital Corp., 13.75% due 07/15/2009+++ 1,315,000 13,150 ------------ 3,502,996 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.88% Centennial Cellular Operating Company, LLC, 10.75% due 12/15/2008 (a) 840,000 886,200 Dobson Communications Corp., 10.875% due 07/01/2010 2,498,000 2,722,820
The accompanying notes are an integral part of the financial statements. 192 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- TELECOMMUNICATIONS EQUIPMENT & SERVICES - CONTINUED EchoStar DBS Corp., 9.375% due 02/01/2009 $ 6,035,000 $ 6,344,294 Insight Midwest LP, 9.75% due 10/01/2009 1,825,000 1,929,937 Insight Midwest LP/ Insight Capital, 10.50% due 11/01/2010 525,000 570,938 Insight Midwest LP/ Insight Capital, Inc., 10.50% due 11/01/2010 (a) 900,000 978,750 Lucent Technologies, Inc., 6.45% due 03/15/2029 (a) 7,350,000 5,778,937 -------------- 19,211,876 TELEPHONE - 3.33% Accident Escrow Corp., 10.00% due 08/01/2011 2,750,000 3,066,250 AT&T Corp., FRN 8.75% due 11/15/2031 5,150,000 6,018,099 Cincinnati Bell, Inc., 8.375% due 01/15/2014 3,250,000 3,493,750 Primus Telecommunications Group, Inc., Series B, 9.875% due 05/15/2008 940,000 972,900 11.25% due 01/15/2009 1,070,000 1,134,200 Qwest Services Corp., 13.50% due 12/15/2010 1,400,000 1,701,000 14.00% due 12/15/2014 9,250,000 11,770,625 Rhythms NetConnections, Inc., Series B, 13.50% due 05/15/2008+++ 4,530,537 453 14.00% due 02/15/2010+++ 2,226,610 223 Sprint Capital Corp., 8.75% due 03/15/2032 4,900,000 5,788,811 -------------- 33,946,311 TOTAL CORPORATE BONDS (Cost: $637,126,233) $ 669,884,425 -------------- COLLATERALIZED MORTGAGE OBLIGATIONS - 0.29% CA FM Lease Trust, 8.50% due 07/15/2017 2,585,245 2,911,141 -------------- TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost: $2,955,729) $ 2,911,141 -------------- SHORT TERM INVESTMENTS - 11.63% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 118,768,354 $ 118,768,354 -------------- REPURCHASE AGREEMENTS - 3.73% UBS Tri-Party Repurchase Agreement, dated 12/31/2003 at 0.83%, to be repurchased at $38,126,758 on 01/02/2004, collateralized by $28,621,000 U.S. Treasury Bonds, 7.875% due 02/15/2021 (valued at $39,738,691, including interest). $ 38,125,000 $ 38,125,000 -------------- TOTAL INVESTMENTS (HIGH YIELD TRUST) (Cost: $989,225,745) $1,021,008,725 ==============
STRATEGIC BOND TRUST
SHARES VALUE ------ ----- COMMON STOCK - 0.40% BROADCASTING - 0.14% UnitedGlobalCom, Inc., Class A * (a) 130,995 $ 1,110,838 ------------ BUSINESS SERVICES - 0.00% ContinentalAFA Dispensing Company * 25,862 37,500 ------------ COMPUTERS & BUSINESS EQUIPMENT - 0.00% Axiohm Transaction Solutions * 8,111 81 ------------ FINANCIAL SERVICES - 0.00% Contifinancial Corp. Liquidating Trust * (a) 1,451,718 14,517 ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.26% NTL, Inc. * (a) 21,970 1,532,407 Spectrasite Inc. * 16,758 582,341 ------------ 2,114,748 TOTAL COMMON STOCK (Cost: $4,472,298) $ 3,277,684 ------------ PREFERRED STOCK - 0.23% BROADCASTING - 0.19% CSC Holdings, Inc., Series H * 2,000 208,500 CSC Holdings, Inc., Series M 12,750 1,341,937 ------------ 1,550,437 CELLULAR COMMUNICATIONS - 0.04% Alamosa Holdings, Inc. * 975 312,009 ------------ ELECTRIC UTILITIES - 0.00% TCR Holdings, Class B * 3,003 3 TCR Holdings, Class C * 1,652 2 TCR Holdings, Class D * 4,355 4 TCR Holdings, Class E * 9,009 9 ------------ 18 TOTAL PREFERRED STOCK (Cost: $1,442,360) $ 1,862,464 ------------ WARRANTS - 0.01% CELLULAR COMMUNICATIONS - 0.01% American Tower Escrow Corp. * 650 81,575 ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.00% Leap Wireless International, Inc. *, (Expiration date 04/15/2010; strike price $96.80) 370 4 ------------ GOVERNMENT OF MEXICO - 0.00% Mexican Value Recovery Right, Series B * 1,000,000 3,500 Mexican Value Recovery Right, Series C * 1,000,000 800 Mexican Value Recovery Right, Series D * 1,000,000 800 Mexican Value Recovery Right, Series E * 1,000,000 600 ------------ 5,700 REPUBLIC OF VENEZUELA - 0.00% Republic of Venezuela, (Expiration date 04/15/2020; strike price $26.00) * 10,000 600 ------------ TOTAL WARRANTS (Cost: $47,311) $ 87,879 ------------
The accompanying notes are an integral part of the financial statements. 193 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- U.S. TREASURY OBLIGATIONS - 2.44% U.S. TREASURY BONDS - 1.75% 5.25% due 11/15/2028 - 02/15/2029 *** $ 8,250,000 $ 8,314,826 5.50% due 08/15/2028 *** 3,500,000 3,645,607 6.125% due 08/15/2029 *** 2,000,000 2,266,406 ------------ 14,226,839 U.S. TREASURY NOTES - 0.69% 4.25% due 08/15/2013 (a) 3,000,000 3,003,750 5.875% due 11/15/2004 *** 2,500,000 2,600,195 ------------ 5,603,945 TOTAL U.S. TREASURY OBLIGATIONS (Cost: $19,120,037) 19,830,784 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 23.30% FEDERAL HOME LOAN MORTGAGE CORPORATION - 3.20% 5.00% TBA ** 26,000,000 25,658,750 REMIC, IO, 7.595% due 07/15/2006 37,991 375 8.00% due 05/01/2010 69,688 75,152 8.50% due 05/01/2008 69,342 74,472 10.00% due 05/15/2020 188,661 188,933 ------------ 25,997,682 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 20.06% 5.00% TBA ** 40,500,000 40,069,688 5.50% TBA ** 60,000,000 60,768,720 6.00% TBA ** 12,000,000 12,401,256 6.00% TBA ** 20,000,000 20,600,000 6.50% due 10/01/2032 6,797,695 7,110,314 7.00% TBA ** 14,000,000 14,822,500 FRN 7.376% due 01/17/2013 4,933,492 5,228,683 7.50% due 07/01/2030 - 02/01/2031 534,683 571,361 8.00% due 07/01/2027 - 08/01/2027 769,511 837,850 REMIC, 8.8% due 01/25/2019 350,191 385,477 REMIC, 10.40% due 04/25/2019 124,022 136,451 ------------ 162,932,300 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.04% 7.50% due 04/15/2022 - 02/15/2028 299,476 321,921 ------------ TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $188,610,668) $189,251,903 ------------ FOREIGN GOVERNMENT OBLIGATIONS - 15.02% REPUBLIC OF ARGENTINA - 0.15% FRN 2.0625% due 03/31/2023 2,000,000 1,005,000 FRN 6.00% due 03/31/2023 500,000 240,000 ------------ 1,245,000 FEDERAL REPUBLIC OF BRAZIL - 2.34% FRN, 2.0625% due 04/15/2012 6,950,000 6,237,625 FRN 8.00% due 04/15/2014 3,675,759 3,618,785 9.25% due 10/22/2010 545,000 585,875 11.00% due 08/17/2040 850,000 935,000 12.00% due 04/15/2010 5,075,000 6,090,000 12.25% due 03/06/2030 1,250,000 1,556,250 ------------ 19,023,535 NATIONAL REPUBLIC OF BULGARIA - 0.29% FRN, 1.9375% due 07/28/2012 244,286 241,232 8.25% due 01/15/2015 1,750,000 2,078,650 ------------ 2,319,882 REPUBLIC OF COLOMBIA - 0.48% 8.375% due 02/15/2027 65,000 60,353 10.00% due 01/23/2012 400,000 438,000 10.375% due 01/28/2033 450,000 482,625 10.75% due 01/15/2013 1,475,000 1,677,812 11.75% due 02/25/2020 1,025,000 1,235,125 ------------ 3,893,915 REPUBLIC OF ECUADOR - 0.34% FRN, 7.00% due 08/15/2030 3,550,000 2,733,500 ------------ GOVERNMENT OF FRANCE - 1.89% 3.50% due 01/12/2008 12,100,000 15,369,650 ------------ FEDERAL REPUBLIC OF GERMANY - 3.47% 4.25% due 02/15/2008 10,700,000 13,924,336 4.75% due 07/04/2008 10,750,000 14,254,198 ------------ 28,178,534 REPUBLIC OF ITALY - 0.25% 5.804% due 10/25/2032 2,000,000 2,048,552 ------------ REPUBLIC OF KOREA - 0.11% 4.25% due 06/01/2013 900,000 869,067 ------------ GOVERNMENT OF MEXICO - 1.52% 7.50% due 04/08/2033 425,000 439,875 8.30% due 08/15/2031 9,075,000 10,232,062 8.375% due 01/14/2011 1,400,000 1,662,500 ------------ 12,334,437 GOVERNMENT OF MOROCCO - 0.30% FRN 2.187% due 01/01/2009 2,452,705 2,403,651 ------------ REPUBLIC OF PANAMA - 0.30% 8.875% due 09/30/2027 2,025,000 2,126,250 9.625% due 02/08/2011 300,000 346,500 ------------ 2,472,750 REPUBLIC OF PERU - 0.23% FRN, 4.50% due 03/07/2017 1,425,000 1,268,250 9.875% due 02/06/2015 550,000 638,000 ------------ 1,906,250 REPUBLIC OF PHILIPPINES - 0.54% 8.375% due 03/12/2009 3,300,000 3,477,375 10.625% due 03/16/2025 850,000 945,625 ------------ 4,423,000 GOVERNMENT OF RUSSIA - 1.77% 5.00%, Step up to 7.50% on 3/31/2007 due 03/31/2030 8,275,500 7,934,136 11.00% due 07/24/2018 450,000 610,875 8.25% due 03/31/2010 5,238,000 5,853,465 ------------ 14,398,476 REPUBLIC OF TURKEY - 0.67% 11.00% due 01/14/2013 2,825,000 3,538,312 11.50% due 01/23/2012 825,000 1,049,813 12.375% due 06/15/2009 650,000 832,000 ------------ 5,420,125 REPUBLIC OF VENEZUELA - 0.25% FRN, 2.125% due 12/18/2007 571,411 542,841 FRN, 7.437% due 03/31/2007 1,583,270 1,500,623 ------------ 2,043,464 NATIONAL GOVERNMENT OF MALAYSIA - 0.12% 7.50% due 07/15/2011 800,000 946,368 ------------ TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost: $109,447,076) $122,030,156 ------------
The accompanying notes are an integral part of the financial statements. 194 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ---------- --------- CORPORATE BONDS - 24.47% ADVERTISING - 0.20% RH Donnelley Finance Corp., Series I, 10.875% due $ 750,000 $ 889,687 12/15/2012 Vertis, Inc., 9.75% due 04/01/2009 650,000 706,063 ---------- 1,595,750 AEROSPACE - 0.24% Alliant Techsystems Inc., 8.50% due 05/15/2011 800,000 880,000 Sequa Corp., 9.00% due 08/01/2009 975,000 1,074,938 ---------- 1,954,938 AIR TRAVEL - 0.09% Continental Airlines, Inc., 6.541% due 09/15/2008 524,478 492,698 7.25% due 11/01/2005 275,000 262,276 ---------- 754,974 APPAREL & Textiles - 0.12% Levi Strauss & Company, 7.00% due 11/01/2006 (a) 275,000 176,688 Levi Strauss & Company, 11.625% due 01/15/2008 (a) 200,000 130,500 12.25% due 12/15/2012 (a) 625,000 406,250 Tropical Sportswear International Corp., Series A, 11.00% due 350,000 283,500 06/15/2008 (a) ---------- 996,938 AUTO PARTS - 0.40% CSK Auto Inc., 12.00% due 06/15/2006 1,000,000 1,147,500 Eaglepincher, Inc., 9.75% due 09/01/2013 600,000 648,000 Tenneco Automotive, Inc., 11.625% due 10/15/2009 (a) 700,000 756,000 TRW Automotive, Inc., 9.375% due 02/15/2013 600,000 685,500 ---------- 3,237,000 BANKING - 0.83% Bank of America Corp., 4.875% due 09/15/2012 (a) 1,775,000 1,784,090 Capital One Financial Corp., 7.25% due 05/01/2006 1,250,000 1,352,630 Independence Community Bank Corp., FRN 3.500% due 1,575,000 1,519,732 06/20/2013 Standard Chartered Bank, 8.00% due 05/30/2031 *** 1,750,000 2,114,677 ---------- 6,771,129 BROADCASTING - 1.00% Charter Communications Holdings, 8.625% due 04/01/2009 (a) 100,000 87,250 10.00% due 05/15/2011 610,000 530,700 10.75% due 10/01/2009 350,000 321,125 zero coupon, Step up to 11.75% on 05/15/2006 due 05/15/2011 1,575,000 1,055,250 zero coupon, Step up to 11.75% on 1/15/2005 due 01/15/2010 700,000 570,500 zero coupon, Step up to 12.125% on 01/15/2007 due 01/15/2012 250,000 153,750 zero coupon, Step up to 13.50% on 01/15/2006 due 01/15/2011 (a) 300,000 223,500 Charter Communications Holdings LLC, 8.25% due 04/01/2007 (a) 425,000 399,500 CSC Holdings, Inc, 9.875% due 02/15/2013 (a) 550,000 574,750 9.875% due 04/01/2023 550,000 575,437 10.50% due 05/15/2016 175,000 200,375 Nextmedia Operating, Inc., 10.75% due 07/01/2011 450,000 510,750 Radio One, Inc., 8.875% due 07/01/2011 600,000 661,500 Telewest Communication PLC, zero coupon, Step up to 11.375% on 02/01/2005 due 02/01/2010 (a) 825,000 404,250 Viacom, Inc., 6.625% due 05/15/2011 *** 500,000 567,622 Vivendi Universal, SA, 9.25% due 04/15/2010 725,000 859,125 Young Broadcasting, Inc., 8.75% due 01/15/2014 400,000 405,000 ---------- 8,100,384 BUILDING MATERIALS & Construction - 0.04% Brand Services, Inc., 12.00% due 10/15/2012 300,000 346,875 ---------- BUSINESS SERVICES - 0.34% Interep National Radio Sales, Inc., Series B, Class A, 10.00% due 07/01/2008 350,000 309,750 Iron Mountain, Inc., 6.625% due 01/01/2016 675,000 656,438 8.125% due 05/15/2008 32,000 33,240 8.625% due 04/01/2013 550,000 594,000 Sitel Corp., 9.25% due 03/15/2006 450,000 441,000 Tempur Pedic, Inc., 10.25% due 08/15/2010 650,000 724,750 ---------- 2,759,178 CABLE AND TELEVISION - 0.61% AOL Time Warner, Inc., 7.625% due 04/15/2031 1,125,000 1,297,989 Cox Communications, Inc., 7.75% due 11/01/2010 1,000,000 1,191,260 Directv Holdings LLC, 8.375% due 03/15/2013 725,000 841,000 Lodgenet Entertainment Corp., 9.50% due 06/15/2013 (a) 600,000 657,000 Mediacom Broadband LLC, 11.00% due 07/15/2013 (a) 625,000 701,562 Mediacom LLC/Mediacom Capital Corp., 9.50% due 01/15/2013 (a) 225,000 238,500 ---------- 4,927,311 CELLULAR COMMUNICATIONS - 1.26% Alamosa Delaware, Inc., 11.00% due 07/31/2010 633,000 686,805 American Tower Corp., 9.375% due 02/01/2009 (a) 925,000 985,125 American Tower Escrow Corp., zero coupon due 08/01/2008 650,000 448,500 AT&T Broadband Corp., 8.375% due 03/15/2013 1,150,000 1,407,081 AT&T Wireless Services, Inc., 8.75% due 03/01/2031 1,150,000 1,418,903 Crown Castle International Corp., 7.50% due 12/01/2013 125,000 125,625
The accompanying notes are an integral part of the financial statements. 195 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- CELLULAR COMMUNICATIONS - CONTINUED Crown Castle International Corp., 9.00% due 05/15/2011 $ 400,000 $ 427,000 10.75% due 08/01/2011 (a) 790,000 888,750 Nextel Communications, Inc., 7.375% due 08/01/2015 1,425,000 1,531,875 9.375% due 11/15/2009 275,000 299,750 SBA Communications Corp., zero coupon, Step up to 9.75% on 12/15/2007 due 12/15/2011 600,000 423,000 10.25% due 02/01/2009 975,000 957,938 Western Wireless Corp., 9.25% due 07/15/2013 625,000 659,375 ------------ 10,259,727 CHEMICALS - 1.72% Acetex Corp., 10.875% due 08/01/2009 1,075,000 1,193,250 Airgas, Inc., 7.75% due 09/15/2006 625,000 656,250 Borden Chemicals & Plastics Operating, 9.50% due 05/01/2005+++ 525,000 5,250 Equistar Chemicals LP, 10.625% due 05/01/2011 650,000 718,250 FMC Corp., MTN, 7.00% due 05/15/2008 500,000 510,000 10.25% due 11/01/2009 500,000 585,000 Huntsman Advanced Materials LLC, 11.00% due 07/15/2010 575,000 635,375 Huntsman ICI Chemicals, 10.125% due 07/01/2009 (a) 150,000 154,500 Huntsman International LLC, 9.875% due 03/01/2009 (a) 550,000 602,250 ISP Chemco, Inc., Series B, 10.25% due 07/01/2011 875,000 984,375 Lyondell Chemical Company, 11.125% due 07/15/2012 (a) 575,000 638,250 Series B, 9.875% due 05/01/2007 (a) 75,000 79,125 Methanex Corp., 8.75% due 08/15/2012 700,000 780,500 Millennium America Inc., 9.25% due 06/15/2008 125,000 136,250 9.25% due 06/15/2008 (a) 875,000 953,750 Noveon, Inc., Series B, 11.00% due 02/28/2011 1,000,000 1,160,000 Potash Corp., 4.875% due 03/01/2013 1,525,000 1,489,923 Rhodia SA, 7.625% due 06/01/2010 (a) 725,000 696,000 United Industries Corp., 9.875% due 04/01/2009 1,250,000 1,309,375 Westlake Chemical Corp., 8.75% due 07/15/2011 650,000 711,750 ------------ 13,999,423 COAL - 0.09% Luscar Coal Ltd., 9.75% due 10/15/2011 625,000 707,813 ------------ COMPUTERS & BUSINESS EQUIPMENT - 0.18% Seagate Technology Holdings, 8.00% due 05/15/2009 475,000 511,813 Unisys Corp., 7.875% due 04/01/2008 825,000 854,906 8.125% due 06/01/2006 50,000 54,000 ------------ 1,420,719 CONTAINERS & GLASS - 0.50% Anchor Glass Container Corp., 11.00% due 02/15/2013 (a) 600,000 696,000 Berry Plastics Corp., 10.75% due 07/15/2012 775,000 892,219 Plastipak Holdings, Inc., 10.75% due 09/01/2011 1,000,000 1,112,500 Pliant Corp., 11.125% due 09/01/2009 75,000 81,000 13.00% due 06/01/2010 275,000 251,625 Radnor Holdings, Inc., 11.00% due 03/15/2010 (a) 300,000 273,750 Tekni-Plex, Inc., 8.75% due 11/15/2013 725,000 755,812 ------------ 4,062,906 COSMETICS & TOILETRIES - 0.17% Jafra Cosmetics International, Inc., 10.75% due 05/15/2011 (a) 600,000 658,500 Playtex Products, Inc., 9.375% due 06/01/2011 (a) 725,000 732,250 ------------ 1,390,750 DOMESTIC OIL - 0.89% Devon Financing Corp., ULC, 6.875% due 09/30/2011 1,200,000 1,360,710 Forest Oil Corp., 8.00% due 12/15/2011 (a) 850,000 928,625 Magnum Hunter Resources, Inc., 9.60% due 03/15/2012 1,150,000 1,305,250 Pride International, Inc., 10.00% due 06/01/2009 (a) 150,000 160,875 Stone Energy Corp., 8.25% due 12/15/2011 750,000 817,500 Valero Energy Corp., 4.75% due 06/15/2013 *** 1,425,000 1,350,334 Westport Resources Corp., 8.25% due 11/01/2011 1,200,000 1,320,000 ------------ 7,243,294 DRUGS & HEALTH CARE - 0.30% Aaipharma Inc., 11.00% due 04/01/2010 575,000 652,625 Humana, Inc., 6.30% due 08/01/2018 (a) 600,000 631,626 Iasis Healthcare Corp., 13.00% due 10/15/2009 1,000,000 1,125,000 ------------ 2,409,251 ELECTRICAL EQUIPMENT - 0.31% BRL Universal Equipment, 8.875% due 02/15/2008 500,000 536,250 Fedders North America, Inc., 9.375% due 08/15/2007 (a) 975,000 979,875 Sanmina Corp., zero coupon due 09/12/2020 600,000 304,500 Wesco Distribution, Inc., 9.125% due 06/01/2008 (a) 650,000 672,750 ------------ 2,493,375 ELECTRIC UTILITIES - 1.29% AES Corp., 8.375% due 08/15/2007 (a) 50,000 50,625 9.375% due 09/15/2010 (a) 600,000 665,250 Allegheny Energy Supply Company, 10.25% due 11/15/2007 550,000 572,000 Avon Energy Partners Holdings, 6.46% due 03/04/2008 850,000 809,625
The accompanying notes are an integral part of the financial statements. 196 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- ELECTRIC UTILITIES - CONTINUED Avon Energy Partners Holdings, 7.05% due 12/11/2007 $ 975,000 $ 928,687 Calpine Corp., 8.50% due 05/01/2008 - 07/15/2010 2,025,000 1,694,813 8.75% due 07/15/2007 (a) 500,000 410,000 Edison Mission Energy, 9.875% due 04/15/2011 1,525,000 1,586,000 Mirant Americas Generation LLC, 9.125% due 05/01/2031+++ 650,000 549,250 NiSource Finance Corp., 7.625% due 11/15/2005 1,425,000 1,556,808 Reliant Resources, Inc., 9.25% due 07/15/2010 900,000 954,000 9.50% due 07/15/2013 650,000 695,500 ------------ 10,472,558 ELECTRONICS - 0.52% Entergy Gulf States, Inc., 6.20% due 07/01/2033 1,600,000 1,521,503 L 3 Communications Corp., 7.625% due 06/15/2012 1,175,000 1,273,406 Motors & Gears, Inc., Series D, 10.75% due 11/15/2006 1,000,000 850,000 Muzak LLC/Muzak Finance Corp., 9.875% due 03/15/2009 (a) 625,000 603,906 ------------ 4,248,815 ENERGY - 0.48% Duke Energy Company, 4.20% due 10/01/2008 1,500,000 1,506,639 El Paso Energy, 7.375% due 12/15/2012 (a) 1,200,000 1,104,000 NRG Energy, Inc., 8.00% due 12/15/2013 600,000 630,750 Swift Energy Company, 10.25% due 08/01/2009 575,000 623,875 ------------ 3,865,264 FINANCIAL SERVICES - 2.50% CIT Group, Inc., 7.75% due 04/02/2012 1,800,000 2,126,592 Corporacion Andina de Fomento, 6.875% due 03/15/2012 2,000,000 2,219,124 Ford Motor Credit Company, 7.25% due 10/25/2011 325,000 352,483 7.875% due 06/15/2010 1,000,000 1,117,365 General Electric Capital Corp., 3.50% due 05/01/2008 2,500,000 2,502,540 General Motors Acceptance Corp., 6.875% due 09/15/2011 1,400,000 1,507,978 Household Finance Corp., 8.00% due 07/15/2010 1,500,000 1,796,374 International Lease Finance Corp., 6.375% due 03/15/2009 1,750,000 1,927,844 Lehman Brothers Holdings Inc., 3.50% due 08/07/2008 2,375,000 2,360,154 Morgan Stanley Dean Witter, 6.60% due 04/01/2012 (a) 1,850,000 2,066,152 Washington Mutual Finance Corp., 6.875% due 05/15/2011 *** 1,900,000 2,181,350 Yell Finance BV, zero coupon, Step up to 13.50% on 08/01/2006 due 08/01/2011 (a) 176,000 161,920 ------------ 20,319,876 FOOD & BEVERAGES - 0.81% Ahold Finance USA, Inc., 6.875% due 05/01/2029 125,000 111,563 7.82% due 01/02/2020 141,859 143,278 8.25% due 07/15/2010 700,000 763,000 Constellation Brands Inc., 8.125% due 01/15/2012 600,000 657,000 Del Monte Corp., 8.625% due 12/15/2012 525,000 574,875 Dole Food, Inc., 8.875% due 03/15/2011 975,000 1,070,062 Kellogg Company, Series B, 6.60% due 04/01/2011 1,350,000 1,512,934 Kraft Foods, Inc., 5.625% due 11/01/2011 750,000 790,235 Premier International Foods Plc, 12.00% due 09/01/2009 875,000 958,125 ------------ 6,581,072 FOREST PRODUCTS - 0.10% Tembec Industries, Inc., 8.625% due 06/30/2009 (a) 825,000 849,750 ------------ GAS & PIPELINE UTILITIES - 0.95% Dynegy Holdings, Inc., 9.875% due 07/15/2010 2,000,000 2,250,000 El Paso, Corp., 7.875% due 06/15/2012 (a) 375,000 354,375 United Utilities PLC, 4.55% due 06/19/2018 *** 2,400,000 2,139,343 Western Gas Resources, Inc., 10.00% due 06/15/2009 745,000 800,875 Williams Companies, Inc., 7.625% due 07/15/2019 100,000 104,625 7.875% due 09/01/2021 950,000 1,002,250 8.625% due 06/01/2010 300,000 336,750 8.75% due 03/15/2032 650,000 734,500 ------------ 7,722,718 HEALTHCARE PRODUCTS - 0.18% Advanced Medical Optics, Inc., 9.25% due 07/15/2010 889,000 973,455 Icon Health & Fitness, 11.25% due 04/01/2012 450,000 490,500 ------------ 1,463,955 HEALTHCARE SERVICES - 0.26% Ameripath, Inc., 10.50% due 04/01/2013 (a) 700,000 745,500 Extendicare Health Services Inc., 9.50% due 07/01/2010 (a) 650,000 721,500 Insight Health Services Corp., 9.875% due 11/01/2011 625,000 662,500 ------------ 2,129,500 HOMEBUILDERS - 0.07% Interface Inc., 9.50% due 11/15/2005 (a) 625,000 606,250 ------------ HOTELS & RESTAURANTS - 1.47% Ameristar Casinos Inc., 10.75% due 02/15/2009 650,000 747,500 Coast Hotels and Casinos, Inc., 9.50% due 04/01/2009 1,120,000 1,184,400 Courtyard By Marriott II, LP, 10.75% due 02/01/2008 600,000 602,250
The accompanying notes are an integral part of the financial statements. 197 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- HOTELS & RESTAURANTS - CONTINUED Felcor Lodging, LP, FRN 9.500% due 09/15/2008 $ 425,000 $ 459,000 Felcor Lodging, LP, 8.50% due 06/01/2011 (a) 375,000 406,875 HMH Properties Inc., Series B, 7.875% due 08/01/2008 775,000 806,000 Series C, 8.45% due 12/01/2008 153,000 159,503 Host Marriot LP, 8.375% due 02/15/2006 100,000 106,625 John Q Hammons Hotels LP, 8.875% due 05/15/2012 600,000 661,500 Kerzner International, 8.875% due 08/15/2011 250,000 273,125 Meristar Hospitality Corp., REIT, 9.125% due 01/15/2011 (a) 250,000 265,000 Meristar Hospitality Operating Partnership LP, REIT, 10.50% due 06/15/2009 275,000 298,375 MGM Grand, Inc., 8.375% due 02/01/2011 (a) 175,000 198,187 9.75% due 06/01/2007 760,000 866,400 Park Place Entertainment Corp., 8.125% due 05/15/2011 475,000 532,594 8.875% due 09/15/2008 (a) 50,000 56,625 9.375% due 02/15/2007 875,000 990,937 Sbarro, Inc., 11.00% due 09/15/2009 (a) 950,000 750,500 Starwood Hotels & Resorts Worldwide, Inc, 7.875% due 05/01/2012 625,000 703,125 Station Casinos, Inc., 8.375% due 02/15/2008 525,000 562,406 8.875% due 12/01/2008 250,000 258,750 Turning Stone Casino Resort, 9.125% due 12/15/2010 250,000 271,875 Venetian Casino Resort LLC, 11.00% due 06/15/2010 700,000 812,000 ------------ 11,973,552 HOUSEHOLD APPLIANCES - 0.02% Flooring America, Inc. Series B, 9.25% due 10/15/2007- 369,000 37 Windmere Durable Holdings, Inc., 10.00% due 07/31/2008 184,000 184,000 ------------ 184,037 HOUSEHOLD PRODUCTS - 0.18% Holmes Products Corp., 9.875% due 11/15/2007 725,000 748,563 Sealy Mattress Company, 9.875% due 12/15/2007 725,000 750,375 ------------ 1,498,938 INDUSTRIAL MACHINERY - 0.26% Case New Holland, Inc., 9.25% due 08/01/2011 75,000 84,000 Flowserve Corp., 12.25% due 08/15/2010 (a) 775,000 899,000 NMHG Holding Company, 10.00% due 05/15/2009 1,000,000 1,105,000 ------------ 2,088,000 INDUSTRIALS - 0.09% Blount, Inc., 13.00% due 08/01/2009 700,000 754,250 ------------ INTERNATIONAL OIL - 0.36% Petronas Capital, Ltd., 7.00% due 05/22/2012 500,000 569,561 Pogo Producing Company, 8.25% due 04/15/2011 1,100,000 1,226,500 Vintage Petroleum, Inc., 7.875% due 05/15/2011 (a) 425,000 448,375 9.75% due 06/30/2009 625,000 657,813 ------------ 2,902,249 LEISURE TIME - 0.20% Doane Pet Care Company, 9.75% due 05/15/2007 (a) 700,000 626,500 Herbst Gaming, Inc., 10.75% due 09/01/2008 300,000 337,500 Horseshoe Gaming LLC, Series B, 8.625% due 05/15/2009 625,000 660,156 ------------ 1,624,156 MANUFACTURING - 0.05% Park-Ohio Industries, Inc., 9.25% due 12/01/2007 375,000 373,125 ------------ MEDICAL-HOSPITALS - 0.33% Tenet Healthcare Corp., 6.875% due 11/15/2031 350,000 313,250 7.375% due 02/01/2013 375,000 376,875 Triad Hospitals, Inc., Series B, 8.75% due 05/01/2009 400,000 433,500 Vanguard Health Systems, Inc., 9.75% due 08/01/2011 1,037,000 1,125,145 Vicar Operating, Inc., 9.875% due 12/01/2009 375,000 416,250 ------------ 2,665,020 METAL & METAL PRODUCTS - 0.30% IMCO Recycling, Inc., 10.375% due 10/15/2010 325,000 333,937 WMC Finance USA, Ltd., 5.125% due 05/15/2013 1,425,000 1,404,318 Wolverine Tube, Inc., 7.375% due 08/01/2008 725,000 670,625 ------------ 2,408,880 MINING - 0.10% Compass Minerals Group Inc., 10.00% due 08/15/2011 750,000 840,000 ------------ PAPER - 0.75% Appleton Papers, Inc., 12.50% due 12/15/2008 250,000 282,500 Bowater Canada Finance Corp., 7.95% due 11/15/2011 450,000 477,870 Bowater Inc., 6.50% due 06/15/2013 1,125,000 1,091,821 Buckeye Technologies Inc., 8.00% due 10/15/2010 500,000 490,000 Buckeye Technologies Inc., 9.25% due 09/15/2008 (a) 250,000 253,125 Domtar, Inc., 5.375% due 12/01/2013 1,550,000 1,533,756 Norske Skog Canada, 8.625% due 06/15/2011 725,000 761,250 Smurfit-Stone Container, 8.25% due 10/01/2012 1,125,000 1,220,625 ------------ 6,110,947
The accompanying notes are an integral part of the financial statements. 198 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- PETROLEUM SERVICES - 0.15% Hanover Compressor Company, 11.00% due 03/31/2007 $ 575,000 $ 422,625 Pride Petroleum Services, Inc., 9.375% due 05/01/2007 (a) 340,000 350,200 United Refining Company, Series B, 10.75% due 06/15/2007 500,000 405,000 ------------ 1,177,825 PHARMACEUTICALS - 0.09% Athena Neurosciences, Inc., 7.25% due 02/21/2008 850,000 763,300 ------------ PLASTICS - 0.10% Applied Extrusion Technologies, Inc., 010.75% due 07/01/2011 (a) 325,000 269,750 Resolution Performance Products, Inc., 13.50% due 11/15/2010 (a) 650,000 565,500 ------------ 835,250 POLLUTION CONTROL - 0.00% Safety-Kleen Services, Inc., 9.25% due 06/01/2008+++ 1,000,000 2,500 ------------ PUBLISHING - 0.33% Dex Media East LLC, 12.125% due 11/15/2012 500,000 615,000 Dex Media West LLC, 8.50% due 08/15/2010 375,000 417,656 9.875% due 08/15/2013 225,000 261,563 Houghton Mifflin Company, zero coupon, Step up to 11.50% on 10/15/2008 due 10/15/2013 375,000 237,187 Mail-Well I Corp., Series B, 8.75% due 12/15/2008 (a) 500,000 498,750 9.625% due 03/15/2012 175,000 194,250 Yell Finance BV, 10.75% due 08/01/2011 (a) 408,000 477,360 ------------ 2,701,766 REAL ESTATE - 0.19% Boston Properties, Ltd. REIT, 6.25% due 01/15/2013 1,450,000 1,555,912 ------------ RETAIL GROCERY - 0.16% Fleming Companies, Inc., 10.125% due 04/01/2008+++ 200,000 44,000 Safeway, Inc., 7.25% due 02/01/2031 1,150,000 1,262,255 ------------ 1,306,255 RETAIL TRADE - 1.12% Cole National Group Inc., 8.875% due 05/15/2012 650,000 695,500 Cole National Group, Inc., 8.625% due 08/15/2007 275,000 280,500 Eye Care Centers of America, Inc., 9.125% due 05/01/2008 700,000 700,000 Finlay Enterprises, Inc., 9.00% due 05/01/2008 450,000 460,687 Finlay Fine Jewelry Corp., 8.375% due 05/01/2008 825,000 853,875 Gap, Inc., 6.90% due 09/15/2007 25,000 27,594 FRN 8.800% due 12/15/2008 410,000 505,325 Home Interiors & Gifts, Inc., 10.125% due 06/01/2008 1,125,000 1,137,656 Limited Brands, Inc., 6.95% due 03/01/2033 1,450,000 1,576,968 Petco Animal Supplies Inc., 10.75% due 11/01/2011 450,000 526,500 Petro Stopping Centers LP, 10.50% due 02/01/2007 125,000 126,875 Rite Aid Corp., 6.875% due 08/15/2013 (a) 625,000 600,000 7.125% due 01/15/2007 (a) 50,000 51,000 11.25% due 07/01/2008 425,000 473,875 Saks, Inc., 7.50% due 12/01/2010 125,000 135,625 9.875% due 10/01/2011 450,000 535,500 Winsloew Furniture Inc., 12.75% due 08/15/2007 455,000 373,100 ------------ 9,060,580 SANITARY SERVICES - 0.16% Allied Waste North America, Inc., 7.875% due 01/01/2009 175,000 182,438 10.00% due 08/01/2009 (a) 325,000 351,000 Allied Waste North America, Inc., Series B, 8.875% due 04/01/2008 325,000 364,000 9.25% due 09/01/2012 325,000 368,875 ------------ 1,266,313 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.42% Dobson Communications Corp., 10.875% due 07/01/2010 550,000 599,500 EchoStar DBS Corp., 9.125% due 01/15/2009 423,000 473,231 10.375% due 10/01/2007 475,000 520,719 Insight Midwest LP/ Insight Capital, Inc., 9.75% due 10/01/2009 (a) 50,000 52,875 10.50% due 11/01/2010 625,000 679,687 Lucent Technologies, Inc., 6.45% due 03/15/2029 (a) 1,400,000 1,100,750 ------------ 3,426,762 TELEPHONE - 1.06% Accident Escrow Corp., 10.00% due 08/01/2011 650,000 724,750 AT&T Corp., FRN 8.75% due 11/15/2031 650,000 759,566 Cincinnati Bell, Inc., 8.375% due 01/15/2014 750,000 806,250 Qwest Corp., 8.875% due 03/15/2012 1,050,000 1,204,875 13.50% due 12/15/2010 1,525,000 1,852,875 Sprint Capital Corp., 8.375% due 03/15/2012 *** 2,000,000 2,335,600 8.75% due 03/15/2032 750,000 886,042 ------------ 8,569,958 TRANSPORTATION - 0.05% General Maritime Corp., 10.00% due 03/15/2013 300,000 338,625 Holt Group, Inc., 9.75% due 01/15/2006+++ 1,000,000 28,750 ------------ 367,375 TRUCKING & FREIGHT - 0.08% Terex Corp., 10.375% due 04/01/2011 (a) 575,000 644,000 TOTAL CORPORATE BONDS (Cost: $188,852,651) $198,792,443 ------------
The accompanying notes are an integral part of the financial statements. 199 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- COLLATERALIZED MORTGAGE OBLIGATIONS - 2.38% Commerce 2003-Fl9 E, FRN 2.162% due 11/15/2015 $ 1,510,000 $ 1,510,000 Commercial Mortgage Asset Trust, Series 1999-C1, FRN 7.35% due 01/17/2032 1,325,000 1,546,317 Commercial Mortgage, Series 2001-J2A, 5.447% due 07/16/2034 1,760,403 1,815,895 First Boston Mortgage Securities Corp. Strip, Series D, Class I-O, IO, 10.965% due 05/25/2017 149,142 39,889 First Union National Bank Commercial Mortgage, FRN 0.536% due 05/17/2032 65,869,962 2,152,821 GMAC Commercial Mortgage Security, Inc., FRN 3.918% due 01/11/2014 1,491,282 1,483,825 Green Tree Financial Corp., Series 1997-6, Class A8, FRN 7.07% due 01/15/2029 5,659,593 5,891,791 Merit Securities Corp., FRN 2.618% due 09/28/2032 2,525,000 2,237,781 Structured Asset Security Corp., FRN 2.341% due 08/25/2032 *** 2,700,000 2,683,559 ------------ TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost: $19,040,562) $ 19,361,878 ------------ ASSET BACKED SECURITIES - 2.42% Airplane Pass Through Trust, Series 1, Class D, 10.875% due 03/15/2019 1,481,550 29,631 Asset Backed Securities Corp., FRN 3.062% due 04/15/2033 2,000,000 2,017,634 Bayview Financial Acquisition Trust, Series 2001-CA, Class M3, FRN 2.391% due 08/25/2036 3,000,000 3,044,062 First Consumer Credit Card Master, FRN 1.472% due 09/15/2008 1,870,167 1,779,310 First Consumers Master Trust, 5.80% due 12/15/2005 634,549 616,210 Independence II Cdo Ltd, FRN 3.670% due 08/07/2036 857,147 300,001 Metris Master Trust, FRN 2.048% due 07/21/2008 1,575,000 1,545,552 FRN 2.228% due 11/20/2009 2,305,000 2,070,402 FRN 2.548% due 08/20/2008 630,000 616,936 Mid State Trust VI, Class A, 7.34% due 07/01/2035 4,555,218 4,828,007 Residential Asset Security Mortgage Pass, FRN 2.241% due 04/25/2032 1,500,000 1,500,020 SAIL Net Interest Margin Notes, 6.75% due 11/27/2033 562,442 580,476 Varick Structured Asset Fund, Ltd., FRN 2.542 % due 11/01/2035 *** 2,000,000 700,000 ------------ TOTAL ASSET BACKED SECURITIES (Cost: $21,488,039) $ 19,628,241 ------------ SHORT TERM INVESTMENTS - 24.18% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) 37,464,550 37,464,550 Bryant Park Funding LLC 1.10% due 01/13/2004 *** 11,300,000 11,295,857 Four Winds Funding Corp. 1.22% due 01/14/2004 *** 5,650,000 5,647,511 General Motors Acceptance Corp., 1.37% due 01/14/2004 *** 5,650,000 5,647,205 Jupiter Section 1.09% due 01/13/2004 *** 16,975,000 16,968,832 Market Street Funding Corp. 1.10% due 01/14/2004 16,793,000 16,786,329 Polonius Inc. 1.10% due 01/12/2004 11,000,000 10,996,303 Variable Funding Capital Corp., 1.08% due 01/14/2004 *** 11,300,000 11,295,593 Victory Receivable Corp. 1.11% due 01/13/2004 *** 11,300,000 11,295,819 Amsterdam Funding Corp. 1.09% due 01/13/2004 *** 4,090,000 4,088,514 Clipper Receivables Corp. 1.08% due 01/14/2004 *** 11,300,000 11,295,593 Daimler Chrysler NA America Holding Corp., 1.35% due 01/14/2004 *** 5,650,000 5,647,246 Edison Asset Security 1.08% due 01/14/2004 *** 6,818,000 6,815,341 Falcon Asset Securitization 1.08% due 01/13/2004 *** 11,300,000 11,295,932 Scaldis Capital Ltd & Scaldis LLC, 1.09% due 01/12/2004 1,596,000 1,595,468 Tasman Funding, Inc. 1.11% due 01/13/2004 *** 16,975,000 16,968,719 Three Pillars Funding Corp. 1.09% due 01/14/2004 *** 11,300,000 11,295,552 ------------ $196,400,364 REPURCHASE AGREEMENTS - 5.15% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.80%, to be repurchased at $41,850,860 on 01/02/2004, collateralized by $29,190,000 U.S Treasury Bonds, 8.875% due 02/15/2019 (valued at $42,690,375, including interest). *** $41,849,000 $ 41,849,000 TOTAL INVESTMENTS (STRATEGIC BOND TRUST) (Cost: $790,770,366) $812,372,796 ============
GLOBAL BOND TRUST
SHARES VALUE ------ ----- PREFERRED STOCK - 0.76% UNITED STATES - 0.76% DG Funding Trust * 236 $ 2,501,600 TOTAL PREFERRED STOCK (Cost: $2,501,600) $ 2,501,600 ------------
The accompanying notes are an integral part of the financial statements. 200 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- U.S. TREASURY OBLIGATIONS - 9.82% U.S. TREASURY BONDS - 5.64% 6.25% due 08/15/2023 *** (a) $ 1,500,000 $ 1,709,707 7.50% due 11/15/2016 *** (a) 6,410,000 8,160,731 8.125% due 08/15/2019 *** (a) 6,400,000 8,644,999 ----------- 18,515,437 U.S. TREASURY NOTES - 1.44% 3.125% due 10/15/2008 *** (a) 290,000 289,445 4.25% due 11/15/2013 *** (a) 2,200,000 2,197,593 5.00% due 02/15/2011 *** (a) 2,100,000 2,255,285 ----------- 4,742,323 U.S. TREASURY STRIPS - 2.74% zero coupon P.O. due 02/15/2019 - 08/15/2020 (a) 19,600,000 9,001,233 --------- TOTAL U.S. TREASURY OBLIGATIONS (Cost: $32,348,275) $32,258,993 ----------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 2.96% FEDERAL HOME LOAN MORTGAGE CORPORATION - 0.05% 5.50% due 07/15/2031 *** 108,600 110,562 FRN 5.625% due 07/15/2028 *** 66,616 66,936 ----------- 177,498 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.56% FRN 1.541% due 09/25/2032 *** 459,406 457,436 4.64% due 01/30/2008 *** 2,600,000 2,655,705 6.25% due 02/17/2011 *** 2,000,000 2,011,086 ----------- 5,124,227 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.48% FRN 3.25% due 06/20/2030 *** 473,558 472,483 FRN 4.00% due 05/20/2030 *** 161,244 164,204 FRN 4.25% due 01/20/2030 *** 257,668 260,842 FRN 4.375% due 02/20/2024 - 03/20/2028 *** 192,817 196,077 FRN 5.00% due 04/20/2030 *** 47,592 48,464 FRN 5.625% due 11/20/2023 - 11/20/2024 *** 263,531 271,137 FRN 6.625% due 10/20/2026 *** 139,925 143,823 ----------- 1,557,030 SMALL BUSINESS ADMINISTRATION - 0.35% 6.64% due 02/10/2011 646,877 686,326 FRN 7.22% due 11/01/2020 400,673 450,376 ----------- 1,136,702 TENNESSEE VALLEY AUTHORITY - 0.52% 4.875% due 12/15/2016 *** 1,600,000 1,712,981 ----------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $9,634,898) $ 9,708,438 ----------- FOREIGN GOVERNMENT OBLIGATIONS - 40.56% COMMONWEALTH OF AUSTRALIA - 1.69% 4.00% due 08/20/2010 AUD 700,000 721,519 6.50% due 06/14/2005 *** 6,300,000 4,819,010 ----------- 5,540,529 GOVERNMENT OF AUSTRIA - 1.70% 5.25% due 01/04/2011 *** EUR 2,900,000 3,934,348 5.50% due 01/15/2010 *** 1,200,000 1,645,748 ----------- 5,580,096 KINGDOM OF BELGIUM - 0.40% 6.25% due 03/28/2007 *** 100,000 137,776 7.50% due 07/29/2008 *** 800,000 1,175,382 ----------- 1,313,158 FEDERAL REPUBLIC OF BRAZIL - 0.41% FRN 2.00% due 04/15/2006 *** $ 164,800 163,103 FRN 8.00% due 04/15/2014 *** 369,423 363,697 11.00% due 01/11/2012 *** 200,000 232,000 11.50% due 03/12/2008 *** 500,000 580,000 ----------- 1,338,800 GOVERNMENT OF CANADA - 1.91% 5.50% due 06/01/2009 - 06/01/2010 *** CAD 4,100,000 3,382,605 6.00% due 06/01/2011 *** (a) 3,400,000 2,881,851 ----------- 6,264,456 REPUBLIC OF CHILE - 0.06% 5.50% due 01/15/2013 *** $ 200,000 205,700 ----------- GOVERNMENT OF FRANCE - 7.24% 3.00% due 07/12/2008 EUR 4,000,000 4,939,903 4.00% due 04/25/2009 *** 140,000 179,021 4.50% due 07/12/2006 *** 5,200,000 6,813,812 5.00% due 01/12/2006 *** 3,600,000 4,743,109 5.50% due 04/25/2010 *** 5,190,000 7,119,165 ----------- 23,795,010 FEDERAL REPUBLIC OF GERMANY - 18.07% 4.50% due07/04/2003 - 01/04/2013 *** 3,540,000 4,615,969 5.00% due 01/04/2012 *** 2,600,000 3,470,785 5.25% due 01/04/2008 - 01/04/2011 *** 6,700,000 9,082,888 5.625% due 01/04/2028 *** 1,500,000 2,072,115 6.00% due 01/05/2006 2,100,000 2,816,027 6.25% due 04/26/2006 - 01/04/2030 *** 5,950,000 8,655,097 6.50% due 10/14/2005 - 07/04/2027 *** 19,860,000 28,623,386 ----------- 59,336,267 REPUBLIC OF ITALY - 1.05% 4.25% due 11/01/2009 140,000 180,679 4.75% due 07/01/2005 1,050,000 1,365,679 5.50% due 11/01/2010 360,000 493,906 7.75% due 11/01/2006 1,000,000 1,413,413 ----------- 3,453,677 GOVERNMENT OF JAPAN - 2.71% 00.30% due 12/20/2007 *** JPY 720,000,000 6,690,896 1.50% due 12/20/2011 *** 230,000,000 2,207,729 ----------- 8,898,625 GOVERNMENT OF MEXICO - 0.68% 4.00% due 03/11/2004 *** 34,000,000 319,419 6.375% due 01/16/2013 *** $ 600,000 622,500 8.00% due 09/24/2022 *** 770,000 842,380 8.30% due 08/15/2031 *** 400,000 451,000 ----------- 2,235,299 GOVERNMENT OF NETHERLANDS - 0.12% 6.00% due 01/15/2006 *** EUR 300,000 402,176 ----------- REPUBLIC OF PANAMA - 0.08% 8.875% due 09/30/2027 *** $ 250,000 262,500 ----------- REPUBLIC OF PERU - 0.34% FRN 5.000% due 03/07/2017 *** 940,000 869,218 9.125% due 02/21/2012 *** 240,000 267,600 ----------- 1,136,818 GOVERNMENT OF SPAIN - 1.20% 5.15% due 07/30/2009 *** EUR 2,910,000 3,934,334 ----------- GOVERNMENT OF UNITED KINGDOM - 2.90% 4.00% due 03/07/2009 *** GBP 3,300,000 5,723,027 8.00% due 09/27/2013 *** 1,700,000 3,796,645 ----------- 9,519,672
The accompanying notes are an integral part of the financial statements. 201 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost: $118,881,224) $133,217,117 ------------ CORPORATE BONDS - 6.61% CAYMAN ISLANDS - 0.41% Pylon Ltd., Class B Catastrophe Bond, 1.00% due 12/29/2008 EUR 600,000 755,970 Vita Capital, Ltd. 2003-1, FRN 2.56% due 01/01/2007 $ 600,000 601,200 ------------ 1,357,170 DENMARK - 0.17% Nykredit, 6.00% due 10/01/2029 *** DKK 2,604,435 455,518 Unikredit Realkredit, 6.00% due 07/01/2029 *** 502,485 87,826 ------------ 543,344 FRANCE - 0.10% Axa, SA, 3.75% due 01/01/2017 *** EUR 231,700 339,778 ------------ GERMANY - 0.21% Landesbank Baden Wuerttemberg, 5.50% due 04/02/2007 *** 200,000 268,848 Landesbank Rheinland Pfalz, 4.75% due 04/04/2008 *** 330,000 435,118 ------------ 703,966 SWEDEN - 0.28% Swedbank ForeningsSparbanken, FRN 1.770% due 12/11/2011 *** $ 900,000 905,445 ------------ UNITED KINGDOM - 0.72% Holmes Financing Number 6, Series 4A2, FRN 2.376% due 10/15/2009 *** EUR 800,000 1,007,960 Lloyds TSB Bank PLC, FRN 5.625% due 07/15/2049 *** 1,020,000 1,361,745 ------------ 2,369,705 UNITED STATES - 4.72% CIT Group, Inc., FRN 2.660% due 01/31/2005 *** $ 700,000 710,390 Entergy Gulf States, FRN 2.070% due 06/18/2007 *** 500,000 501,127 Ford Motor Credit Company, MTN, FRN 1.51% due 07/19/2004 *** 400,000 399,262 FRN 3.035% due 10/25/2004 *** 700,000 706,608 5.75% due 02/23/2004 *** 250,000 251,498 General Motors Acceptance Corp., MTN, FRN 1.520% due 07/21/2004 *** 1,000,000 1,000,138 J.P. Morgan & Company, Inc., Series MTNA, FRN 6.772% due 02/15/2012 *** 360,000 379,364 KFW International Finance, Inc., 5.75% due 01/15/2008 *** 5,500,000 6,027,725 Kraft Foods, Inc., FRN 1.370% due 11/26/2004 *** 300,000 299,601 MetLife, Inc., 3.911% due 05/15/2005 *** 200,000 205,677 Mihuzo (Fuji) JGB Investment, LLC, FRN 9.87% due 12/31/2049 *** 260,000 293,871 Mizuho Preferred Capital Company, LLC, 114A, 8.79% due 12/29/2049 *** 100,000 109,000 UNITED STATES - CONTINUED Morgan Stanley Dean Witter, FRN 1.420% due 04/22/2004 *** 500,000 500,302 National Rural Utilities Cooperative, MTN, FRN 2.160% due 04/26/2004 *** 1,500,000 1,504,450 Pemex Project Funding Master Trust, 8.625% due 02/01/2022 *** 600,000 664,500 Premium Asset Trust, Series 2000-10, FRN 1.605% due 11/27/2004 1,000,000 1,002,261 Sprint Capital Corp., 7.90% due 03/15/2005 *** 660,000 703,077 UFJ Bank (Tokai) Preferred Capital Company LLC, FRN 9.980% due 12/29/2049 *** 100,000 114,074 UFJ Finance Aruba AEC, 6.75% due 07/15/2013 *** 120,000 127,980 ------------ 15,500,905 TOTAL CORPORATE BONDS (Cost: $19,849,466) $ 21,720,313 ------------ MUNICIPAL BONDS - 2.38% ARIZONA - 0.40% Arizona Educational Loan Marketing Corp., Series A2, FRN 1.200% due 09/01/2033 *** 1,300,000 1,300,000 ------------ CALIFORNIA - 0.78% California Infrastructure & Economic Development Bank Revenue, 5.00% due 07/01/2036 *** 535,000 548,011 Chela Financial USA Inc., Series 2002E-6, FRN 1.700% due 12/01/2037 *** 500,000 500,000 Golden State Tobacco Securitization Corp. California, Series 2003-A-1, 6.25% due 06/01/2033 *** 400,000 382,400 Long Beach California Community College District, Series A, 5.00% due 05/01/2028 *** 100,000 102,696 Los Angeles California Wastewater Systems Revenue, Series A, 5.00% due 06/01/2027 - 06/01/2032 *** 800,000 820,484 Los Angeles County California Sanitation District, 5.00% due 10/01/2011 *** 100,000 113,106 Metropolitan Water District Southern California Waterworks Revenue, 5.00% due 10/01/2036 *** 45,000 46,148 Sacramento County California Public Financing Authority Tax Allocation Revenue, 4.75% due 12/01/2033 *** 55,000 54,737 ------------ 2,567,582 CONNECTICUT - 0.04% Connecticut State, 5.50% due 12/15/2013 *** 100,000 116,890 ------------ FLORIDA - 0.06% Educational Funding South, Inc., Series FL-A-1, 1.14% due 06/01/2038 *** 100,000 100,000 Lee County Florida Transportation Facilities, Series A, 5.00% due 10/01/2034 80,000 82,106 ------------ 182,106
The accompanying notes are an integral part of the financial statements. 202 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- GEORGIA - 0.09% De Kalb County Georgia Water & Sewage Revenue, Series A, 5.00% due 10/01/2035 *** 300,000 307,986 ------------ ILLINOIS - 0.06% Chicago Illinois Board Of Education, 5.00% due 12/01/2031 *** $ 100,000 $ 101,696 Chicago Illinois Water Revenue, 5.00% due 11/01/2026 *** 100,000 102,006 ------------ 203,702 KENTUCKY - 0.03% Louisville & Jefferson Kentucky Sewer, Series A, 5.00% due 05/15/2036 *** 100,000 102,454 ------------ LOUISIANA - 0.14% Louisiana State, Series 2003A, 5.00% due 05/01/2014 *** 400,000 443,036 ------------ MARYLAND - 0.03% Maryland State Health & Higher Education, Series B, 5.00% due 07/01/2041 *** 100,000 102,005 ------------ MICHIGAN - 0.03% Michigan State Building Authority Revenue., Series 1, 5.25% due 10/15/2013 *** 100,000 114,108 ------------ NEW JERSEY - 0.03% New Jersey State Transportation Trust Fund Authority, Series C, 5.00% due 06/15/2010 *** 100,000 111,378 ------------ NEW YORK - 0.40% New York New York City Transitional, 5.25% due 08/01/2011 *** 400,000 455,364 New York New York Series J, 5.25% due 06/01/2028 *** 100,000 103,037 Tobacco Settlement Financing Corp., 5.25% due 06/01/2013 *** 700,000 740,887 ------------ 1,299,288 TEXAS - 0.07% Harris County Texas, 5.00% due 08/01/2033 *** 200,000 201,866 Lower Colorado River Authority, 5.00% due 05/15/2028 *** 30,000 30,757 ------------ 232,623 WASHINGTON - 0.10% Seattle Washington Water Systems Revenue, 5.00% due 09/01/2033 *** 100,000 102,303 Washington Suburban San District Maryland, 5.25% due 06/01/2010 *** 200,000 228,138 ------------ 330,441 WISCONSIN - 0.12% Wisconsin State General Revenue, Series B-1, FRN 1.200 due 05/01/2032 *** 400,000 400,000 ------------ TOTAL MUNICIPAL BONDS (Cost: $7,807,332) $ 7,813,599 ------------ COLLATERALIZED MORTGAGE OBLIGATIONS - 6.800% GERMANY - 0.54% Bauhaus Securities Ltd., Series 1, Class A2, FRN 2.474% due 10/30/2052 *** EUR 1,397,943 1,760,106 ------------ IRELAND - 0.59% Emerald Mortgages PLC. Series 2, Class A, FRN 2.395% due 04/15/2028 *** 708,215 892,539 Lusitano Motgages, FRN 2.432% due 12/15/2035 *** 831,071 1,049,411 ------------ 1,941,950 ITALY - 0.46% Seashell Securities PLC, FRN 3.123% due 10/25/2028 *** 1,195,950 1,502,129 ------------ JAPAN - 0.04% SHL Corp., Ltd., Series 1999-1A, Class A2, FRN 0.756% due 12/25/2024 *** JPY 13,049,700 121,350 ------------ NETHERLANDS - 1.21% Delphinus BV, Series 2001-II, Class A1, FRN 3.344% due 11/28/2031 *** EUR 1,000,000 1,265,242 Delphinus BV, Series 2002-I, Class A1, FRN 3.50% due 04/25/2092 *** 500,000 631,235 Dutch MBS X Bv, Series A, FRN 2.427 due 10/02/2079 *** 1,000,000 1,260,833 Holland Euro-Denominated Mortgage Backed Seies, FRN 3.098% due 04/18/2012 *** 659,517 831,789 ------------ 3,989,099 SPAIN - 0.22% Hipotebansa V Hipotecaria, Series A, FRN 2.2715% due 01/18/2018 *** 605,856 737,853 ------------ UNITED KINGDOM - 1.41% Dolerite Funding PLC, FRN 1.45% due 08/20/2032 *** $ 690,874 690,460 Haus, Ltd.,Series 2000-1A, Class A2,, FRN 2.442% due 12/10/2037 *** 1,573,800 1,574,901 Holmes Financing, Series 1, Class 3A2, FRN 2.396% due 07/15/2010 *** EUR 1,400,000 1,765,871 Ocwen Mortgage Loans, Series 4, Class A, FRN 2.685% due 12/15/2031 *** 87,470 110,483 RMAC, Series 1999-NS2, Class A, FRN 4.576% due 09/12/2041 *** GBP 69,138 123,415 SRM Investment Limited, Series 3, Class A, 2.338% due 08/26/2034 *** EUR 293,204 370,236 ------------ 4,635,366 UNITED STATES - 2.33% Bear Stearns ARM Trust, Series 2002-5, Class 6 A, FRN 5.980% due 06/25/2032 *** $ 66,153 68,530 Countrywide Home Loans, Series 2002-HYB2, Class 6A1, FRN 4.828% due 09/19/2032 *** 187,799 190,064 Credit Suisse First Boston Mortgage Securities Corp., FRN 1.365% due 05/25/2032 *** 94,133 97,074 Credit Suisse First Boston Mortgage Securities Corp., FRN 2.17% due 03/25/2032 263,515 262,067 Crusade Global Trust, Series 1999-1, Class A2, FRN 1.510% due 02/15/2030 818,650 821,277
The accompanying notes are an integral part of the financial statements. 203 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- UNITED STATES - CONTINUED First Alliance Mortgage Loan, Series 1997-4, Class A3, FRN 1.378% due 12/20/2027 *** $ 141,725 $ 141,744 Government Lease Trust, Series 1999-C1A, Class B1,, FXD 4.00% due 05/18/2011 500,000 474,925 GS Mortgage Securities Corp., 2001-1285-A2 SEQ 144A, 6.526% due 08/15/2018 *** 200,000 216,890 2003-FL6A A1 MLIB, FRN 1.320% due 11/15/2015 *** 1,300,000 1,295,593 Homeside Mortgage Securities, Series 2001-1, Class A, FRN 1.350% due 01/20/2027 *** 148,095 146,792 Merrill Lynch Credit Corp. Mortgage Investors, Inc., Series 1999-A, Class A, FRN 1.542% due 03/15/2025 *** 286,443 286,580 Residential Funding Mortgage Securities I, Series 2002-SA2, Class A1, FRN 5.64% due 09/25/2032 *** 116,244 119,180 Sequoia Mortgage Trust, Series 2003-4, Class 2A1, FRN 1.520% due 07/20/2033 *** 1,349,674 1,351,985 Series 8, Class 2A, FRN 1.72% due 08/20/2032 *** 989,019 989,115 Structured Asset Securities Corp., FRN 1.43% due 07/25/2032 240,336 239,902 Series 2001-12, Class 1A4, 5.80% due 09/25/2031 *** 17,730 17,714 Torrens Trust, Series 2000-1GA, Class A, FRN 1.68% due 07/15/2031 *** 175,864 176,110 Washington Mutual Mortgage Securities Corp., FRN 6.01% due 01/25/2031 *** 20,276 20,256 Series 2002-S5, Class 1A1, FRN 5.207% due 10/25/2032 *** 289,058 295,962 Series 2002-AR2, Class A, FRN 3.159 % due 02/27/2034 *** 420,957 427,643 ------------ 7,639,403 TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost: $19,815,729) $ 22,327,256 ------------ ASSET BACKED SECURITIES - 2.75% CAYMAN ISLANDS - 0.18% Redwood Capital Ltd., FRN 4.38% due 01/01/2004 300,000 300,000 Redwood Capital Ltd., Series 2003-3, Class NOTE, 1.00% due 01/01/2006 300,000 300,000 ------------ 600,000 ITALY - 1.07% Findomestic Securitisation Vehicle S.R.L., Series 1, Class A, FRN 2.441% due 12/20/2008 *** $ 2,100,000 2,652,643 First Italian Auto Trans, Class A, FRN 2.413% due 07/01/2008 *** EUR 686,763 864,162 ------------ 3,516,805 UNITED STATES - 1.50% Ameriquest Mortgage Securities, Inc., Series 2003-1, Class A2, FRN 1.551% due 02/25/2033 *** $ 211,504 211,771 Series 2003-2, Class A, FRN 1.551% due 03/25/2033 *** 761,935 762,882 Amresco Residential Securities, Series 1999-1, Class A, FRN 1.611% due 06/25/2029 *** 196,462 196,577 CDC Mortgage Capital Trust, Series 2003-HE2, Class A, FRN 1.491% due 10/25/2033 *** 887,456 887,238 Core, Inc., Series 1999-1A, Class A3B,, FRN 1.365% due 03/17/2009 39,002 39,008 Countrywide Asset-Backed Certificates, Series 2003-BC3, Class A1, FRN 1.241% due 05/25/2021 *** 449,856 449,708 Credit Suisse First Boston Mortgage Securities Corp., Series 2002-P3A, Class A1, FRN 2.202% due 08/25/2033 646,650 646,650 Home Equity Asset Trust, Series 2002-1, Class A4, FRN 1.441% due 11/25/2032 *** 239,688 239,398 Irwin Home Equity, Series 2002-1, Class 2A1, FRN 1.431% due 06/25/2029 *** 222,073 221,697 Residential Asset Securities Corp., Series 2002-KS4, Class AIIB, FRN 1.63% due 07/25/2032 *** 1,141,045 1,141,339 Saxon Asset Securities Trust, Series 2002-3, Class AV, FRN 1.541% due 12/25/2032 *** 132,894 133,082 ------------ 4,929,350 TOTAL ASSET BACKED SECURITIES (Cost: $8,054,714) $ 9,046,155 ------------ SUPRANATIONAL OBLIGATIONS - 1.34% BELGIUM(EUROCLEAR) - 0.55% European Investment Bank, FRN 1.280% due 04/15/2008 *** 1,813,375 1,815,976 ------------ SWITZERLAND - 0.79% Eurofima, 4.75% due 07/07/2004 *** SEK 18,500,000 2,592,078 ------------ TOTAL SUPRANATIONAL OBLIGATIONS (Cost: $3,609,599) $ 4,408,054 ------------ SHORT TERM INVESTMENTS - 22.96% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $36,584,365 $ 36,584,365 CBA (Delaware) Finance, Inc. 1.08% due 02/09/2004 *** 1,500,000 1,498,245 Danske Corp., Series A, 1.075% due 02/09/2004 - 02/24/2004 *** 2,000,000 1,997,402 European Investment Bank 1.06% due 02/05/2004 *** 1,500,000 1,498,454 Federal Home Loan Bank Discount Note, 1.04% due 03/12/2004 *** 200,000 199,590
The accompanying notes are an integral part of the financial statements. 204 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - CONTINUED Federal National Mortgage Association Discount Notes, 1.00% due 02/04/2004 *** $14,000,000 $ 13,986,778 General Electric Capital Corp., 1.09% due 01/15/2004 *** 5,500,000 5,497,669 HBOS Treasury Services PLC, 1.09% due 01/29/2004 *** 5,000,000 4,995,761 1.10% due 03/16/2004 *** 1,000,000 997,708 Kraft Foods, Inc. FRN 1.970% due 12/29/2003 *** 500,000 500,000 Royal Bank of Scotland PLC 1.085% due 01/20/2004 *** 4,000,000 3,997,709 United States Treasury Bills, 0.58% due 03/04/2004 - 60,000 59,912 03/18/2004 *** 0.84% due 03/11/2004 - 3,350,000 3,344,138 03/18/2004 *** 0.90% due 04/22/2004(a) *** 250,000 249,292 ------------ $ 75,407,023 REPURCHASE AGREEMENTS - 2.71% Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.40%, to be repurchased at $8,887,197 on 01/02/2004, collateralized by $9,020,000 U.S. Treasury Notes, 1.75% due 12/31/2004 (valued at $9,065,100, including interest). *** $ 8,887,000 $ 8,887,000 ------------
PUT OPTIONS - 0.35%
NUMBER OF EXPIRATION MONTH/ CONTRACTS STRIKE PRICE VALUE - ---------- ------------ ----- 30,000,000 Interest Rate Swaps June 2004 / $2.00 38,940 3,700,000 United States Treasury January 2004 / Notes 10Yr Futures $130.00 1,103,599 ------------ 1,142,539 TOTAL OPTIONS (Cost: $1,161,617) $ 1,142,539 ------------ TOTAL INVESTMENTS (GLOBAL BOND TRUST) (Cost: $307,958,477) $328,438,087 ============
DIVERSIFIED BOND TRUST
PRINCIPAL AMOUNT VALUE ------ ----- U.S. TREASURY OBLIGATIONS - 17.36% U.S. TREASURY BONDS - 5.15% 5.25% due 02/15/2029 (a) $10,810,000 $ 10,905,431 5.375% due 02/15/2031 (a) 1,580,000 1,647,706 6.50% due 11/15/2026 (a) 1,279,000 1,504,623 8.00% due 11/15/2021 (a) 587,000 792,771 8.875% due 08/15/2017 (a) 7,105,000 10,062,456 ------------ 24,912,987 U.S. TREASURY NOTES - 12.21% 1.625% due 04/30/2005 (a) 3,130,000 3,139,415 1.875% due 09/30/2004 (a) 20,500,000 20,616,112 3.25% due 08/15/2007 (a) 3,000,000 3,060,117 3.875% due 02/15/2013 (a) 2,280,000 2,231,906 5.625% due 02/15/2006 (a) 5,865,000 6,320,681 5.75% due 08/15/2010 (a) 14,275,000 16,005,844 6.25% due 02/15/2007 (a) 6,875,000 7,663,480 ------------ 59,037,555 TOTAL U.S. TREASURY OBLIGATIONS (Cost: $83,085,889) $ 83,950,542 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 22.66% FEDERAL HOME LOAN BANK - 1.44% 3.75% due 08/15/2007 (a) 3,880,000 3,970,497 5.25% due 02/13/2004 3,000,000 3,013,773 ------------ 6,984,270 FEDERAL HOME LOAN MORTGAGE CORPORATION - 5.24% 3.625% due 09/15/2008 (a) 9,300,000 9,361,538 5.50% due 07/15/2006 540,000 581,822 6.00% TBA ** 9,500,000 9,806,095 6.00% due 04/01/2016 - 08/01/2017 5,318,095 5,580,293 ------------ 25,329,748 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 9.90% FRN 3.817% due 09/01/2033 6,865,797 6,904,348 FRN 3.864% due 07/01/2033 939,411 944,116 5.125% due 02/13/2004 (a) 1,500,000 1,506,813 5.50% TBA ** 7,660,000 7,758,140 5.50% due 09/01/2017 - 03/01/2018 3,227,663 3,348,360 6.00% due 05/15/2008 - 06/01/2016 3,928,407 4,270,567 6.25% due 05/15/2029 3,000,000 3,249,840 6.50% due 05/01/2031 - 07/01/2032 6,423,482 6,733,034 FRN 6.50% due 06/01/2031 2,814,144 2,943,275 7.00% due 09/01/2031 - 10/25/2041 6,363,611 6,743,396 7.50% due 01/25/2028 - 08/01/2031 2,693,558 2,914,287 FRN 7.50% due 05/01/2031 503,029 537,565 ------------ 47,853,741 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 6.08% 5.00% TBA ** 25,805,000 25,881,340 6.50% due 05/15/2029 - 04/15/2032 2,147,088 2,265,713 7.00% due 04/15/2029 476,808 508,507 8.00% due 10/15/2026 - 04/15/2030 660,303 719,862 ------------ 29,375,422 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $107,724,006) $109,543,181 ------------ FOREIGN GOVERNMENT OBLIGATIONS - 0.36% REPUBLIC OF CHILE - 0.06% 5.50% due 01/15/2013 280,000 287,980 ------------ GOVERNMENT OF MEXICO - 0.30% 4.625% due 10/08/2008 360,000 364,500 6.375% due 01/16/2013 275,000 285,313 8.375% due 01/14/2011 160,000 190,000 9.875% due 02/01/2010 295,000 372,924 11.375% due 09/15/2016 160,000 226,800 ------------ 1,439,537 TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost: $1,657,870) $ 1,727,517 ------------ CORPORATE BONDS - 24.04% AEROSPACE - 0.62% Raytheon Company, 6.00% due 12/15/2010 250,000 267,186 Systems 2001 Asset Trust LLC, 6.664% due 09/15/2013 1,034,146 1,142,938
The accompanying notes are an integral part of the financial statements. 205 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- AEROSPACE - CONTINUED Systems 2001 Asset Trust, Series 2001, Class B, 7.156% due 12/15/2011 $ 1,458,339 $ 1,591,837 ------------ 3,001,961 AIR TRAVEL - 0.04% Delta Air Lines, Inc., FRN 1.91% due 01/25/2008 181,307 182,326 ------------ ALUMINUM - 0.08% Alcan Aluminum, Ltd., 5.20% due 01/15/2014 390,000 394,205 ------------ AMUSEMENT & THEME PARKS - 0.37% Six Flags, Inc., 8.875% due 02/01/2010 1,750,000 1,795,937 ------------ AUTO PARTS - 0.13% Delphi Corp., 6.50% due 08/15/2013 300,000 315,048 Lear Corp., Series B, 8.11% due 05/15/2009 260,000 305,825 ------------ 620,873 AUTOMOBILES - 0.20% DaimlerChrysler North America Holding, 4.05% due 06/04/2008 750,000 744,894 Ford Motor Company, 7.45% due 07/16/2031 215,000 217,262 ------------ 962,156 BANKING - 1.33% Bank of America Corp., 7.125% due 09/15/2006 1,500,000 1,673,763 Bank One Corp., 4.90% due 04/30/2015 430,000 420,964 Barclays Bank PLC, ADR, FRN 6.86% due 09/29/2049 160,000 173,517 BNP Paribas LLC, 5.125% due 01/15/2015 200,000 199,248 Capital One Bank, 5.75% due 09/15/2010 540,000 571,228 ING Bank, NV, 5.125% due 05/01/2015 210,000 209,301 Kazkommerts International BV, 8.50% due 04/16/2013 425,000 446,462 Union Bancal Corp., 5.25% due 12/16/2013 390,000 393,890 Wells Fargo Company, 3.50% due 04/04/2008 1,000,000 1,003,192 Zions Bancorporation, 6.00% due 09/15/2015 1,290,000 1,352,569 ------------ 6,444,134 BROADCASTING - 1.42% Chancellor Media Corp., 8.00% due 11/01/2008 1,250,000 1,446,875 Clear Channel Communications, Inc., 6.00% due 11/01/2006 500,000 540,449 7.65% due 09/15/2010 750,000 877,906 Cox Radio, Inc., 6.375% due 05/15/2005 1,000,000 1,051,908 Liberty Media Corp., FRN 2.670% due 09/17/2006 1,420,000 1,435,435 5.70% due 05/15/2013 140,000 141,577 7.875% due 07/15/2009 500,000 579,190 News America Holdings, Inc., 6.75% due 01/09/2038 110,000 122,830 Young Broadcasting, Inc., Series B, 8.75% due 06/15/2007 170,000 174,250 10.00% due 03/01/2011 441,000 475,177 ------------ 6,845,597 BUSINESS SERVICES - 0.18% Electronic Data Systems Corp., 6.00% due 08/01/2013 500,000 491,318 PHH Corp., 7.125% due 03/01/2013 320,000 358,366 ------------ 849,684 CABLE AND TELEVISION - 1.13% AOL Time Warner, Inc., 6.875% due 05/01/2012 320,000 360,098 Comcast Corp., Class A, 7.05% due 03/15/2033 1,080,000 1,174,838 Cox Communications, Inc., 7.75% due 11/01/2010 750,000 893,445 Time Warner Entertainment Company LP, 8.375% due 03/15/2023 80,000 99,129 8.875% due 10/01/2012 460,000 583,253 Univision Communications, Inc., 3.875% due 10/15/2008 500,000 494,715 7.85% due 07/15/2011 1,570,000 1,866,477 ------------ 5,471,955 CELLULAR COMMUNICATIONS - 1.58% American Tower Corp., 9.375% due 02/01/2009 1,525,000 1,624,125 AT&T Wireless Services, Inc., 7.875% due 03/01/2011 705,000 815,788 Crown Castle International Corp., 7.50% due 12/01/2013 1,500,000 1,507,500 Motorola, Inc., 7.50% due 05/15/2025 100,000 108,622 8.00% due 11/01/2011 130,000 153,743 Nextel Communications, Inc., 7.375% due 08/01/2015 1,000,000 1,075,000 Nextel Partners, Inc., 11.00% due 03/15/2010 625,000 690,625 Verizon Wireless Capital LLC, 5.375% due 12/15/2006 1,125,000 1,200,490 Vodafone Group PLC, 5.375% due 01/30/2015 440,000 444,076 ------------ 7,619,969 CHEMICALS - 0.19% ICI Wilmington, Inc., 4.375% due 12/01/2008 930,000 926,504 ------------ COMMERCIAL SERVICES - 0.25% Cendant Corp., 6.25% due 01/15/2008 500,000 545,414 6.875% due 08/15/2006 600,000 658,285 ------------ 1,203,699 CONTAINERS & GLASS - 0.39% Packaging Corporation of America, 5.75% due 08/01/2013 750,000 757,654 Stone Container Corp., 9.75% due 02/01/2011 1,000,000 1,105,000 ------------ 1,862,654
The accompanying notes are an integral part of the financial statements. 206 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------------ ------------ DOMESTIC OIL - 0.09% Union Oil Company of California, 7.50% due 02/15/2029 $ 360,000 $ 422,623 ------------ ELECTRICAL EQUIPMENT - 0.27% General Electric Company, 5.00% due 02/01/2013 820,000 829,295 SP Powerassets, Ltd., 5.00% due 10/22/2013 450,000 452,391 ------------ 1,281,686 ELECTRIC UTILITIES - 0.71% CILCORP, Inc., 8.70% due 10/15/2009 575,000 693,762 9.375% due 10/15/2029 50,000 67,210 Dominion Resources, Inc., 5.70% due 09/17/2012 375,000 395,112 Duke Capital Corp., 6.25% due 02/15/2013 575,000 606,528 Empresa Nacional De Electricidad, 8.50% due 04/01/2009 170,000 191,591 Oncor Electric Delivery Company, 7.00% due 05/01/2032 250,000 275,787 Tampa Electric Company, 6.375% due 08/15/2012 400,000 429,673 United Energy Distribution Property, Ltd., 4.70% due 04/15/2011 350,000 354,952 Virginia Electric & Power Company, 4.75% due 03/01/2013 420,000 415,170 ------------ 3,429,785 ELECTRONICS - 0.37% Koninklijke Philips Electronics NV, 7.20% due 06/01/2026 500,000 561,245 Solectron Corp., 9.625% due 02/15/2009 1,100,000 1,226,500 ------------ 1,787,745 ENERGY - 0.29% Midamerican Energy Company, Series MTN, 5.125% due 01/15/2013 120,000 122,299 Peco Energy Company, 5.95% due 11/01/2011 210,000 227,546 Progress Energy, Inc., 5.85% due 10/30/2008 1,000,000 1,072,335 ------------ 1,422,180 FINANCIAL SERVICES - 4.96% Capital One Financial Corp., 6.25% due 11/15/2013 220,000 226,373 Citigroup, Inc., 5.625% due 08/27/2012 150,000 158,346 Corporacion Andina de Fomento, 6.875% due 03/15/2012 375,000 416,086 Credit Suisse First Boston USA, Inc., 6.50% due 01/15/2012 500,000 556,511 Ford Motor Credit Company, 5.80% due 01/12/2009 2,000,000 2,059,706 7.375% due 10/28/2009 - 02/01/2011 965,000 1,055,903 7.875% due 06/15/2010 190,000 212,299 Fuji (Mizuho) JGB Investment, LLC, FRN 9.87% due 12/31/2049 520,000 587,742 General Electric Capital Corp., MTN, Series A, 6.00% due 06/15/2012 250,000 271,113 General Motors Acceptance Corp., 6.875% due 09/15/2011 1,945,000 2,095,012 General Motors Acceptance Corp, 7.00% due 02/01/2012 375,000 403,179 7.25% due 03/02/2011 110,000 120,682 8.00% due 11/01/2031 800,000 898,374 HBOS PLC, 3.125% due 01/12/2007 875,000 882,031 FRN 5.375% due 11/01/2049 810,000 820,004 Household Finance Corp., 5.75% due 01/30/2007 750,000 810,827 6.375% due 11/27/2012 340,000 372,999 6.40% due 06/17/2008 2,875,000 3,187,544 HVB Funding Trust III, 9.00% due 10/22/2031 190,000 229,174 International Lease Finance Corp., 4.55% due 10/15/2009 400,000 399,124 J.P. Morgan Chase & Company, 5.35% due 03/01/2007 750,000 802,721 MBNA Corp., 6.125% due 03/01/2013 420,000 450,982 Nationwide Life Global Funding I, 5.35% due 02/15/2007 180,000 193,778 NiSource Finance, Corp., 6.15% due 03/01/2013 400,000 430,078 PCCW - HKTC Capital, Ltd, 7.75% due 11/15/2011 340,000 400,932 Principal Life Global Funding I, 4.40% due 10/01/2010 820,000 825,501 Reliastar Financial Corp., 6.50% due 11/15/2008 730,000 806,251 SLM Corp., Series MTNA, 5.00% due 04/15/2015 1,375,000 1,356,575 5.375% due 01/15/2013 410,000 420,714 The Goldman Sachs Group, Inc., 5.25% due 04/01/2013 840,000 850,809 USA Education, Inc., 5.625% due 04/10/2007 435,000 471,392 USAA Capital Corp., Series MTNB, 4.00% due 12/10/2007 410,000 419,216 Washington Mutual, Inc., 5.625% due 01/15/2007 750,000 808,323 ------------ 24,000,301 FOOD & BEVERAGES - 0.91% Cadbury Schweppes US Finance LLC, 5.125% due 10/01/2013 400,000 397,395 Delhaize America, Inc., 8.125% due 04/15/2011 900,000 1,035,000 Kellogg Company, Series B, 6.60% due 04/01/2011 490,000 549,139 Kraft Foods, Inc., 5.25% due 06/01/2007 150,000 159,585 Nabisco, Inc., 7.05% due 07/15/2007 420,000 472,438 7.55% due 06/15/2015 1,500,000 1,795,298 ------------ 4,408,855 FOREST PRODUCTS - 0.15% Weyerhaeuser Company, 6.75% due 03/15/2012 685,000 747,294 ------------ GAS & PIPELINE UTILITIES - 0.04% Centerpoint Energy Resources Corp., 7.875% due 04/01/2013 170,000 192,456 ------------
The accompanying notes are an integral part of the financial statements. 207 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------------ ------------ HEALTHCARE SERVICES - 0.37% Aetna, Inc., 7.375% due 03/01/2006 $ 250,000 $ 275,050 Health Net, Inc., 8.375% due 04/15/2011 350,000 420,550 Humana, Inc., 7.25% due 08/01/2006 1,000,000 1,092,618 ------------ 1,788,218 HOMEBUILDERS - 0.50% Centex Corp., 4.75% due 01/15/2008 180,000 185,714 Lennar Corp., 5.95% due 03/01/2013 120,000 125,563 Series B, 9.95% due 05/01/2010 130,000 149,337 MDC Holdings, Inc., 5.50% due 05/15/2013 400,000 400,840 Pulte Homes, Inc., 6.25% due 02/15/2013 525,000 557,324 7.875% due 08/01/2011 380,000 447,879 8.125% due 03/01/2011 225,000 267,164 Toll Brothers, Inc., 6.875% due 11/15/2012 250,000 275,670 ------------ 2,409,491 HOTELS & RESTAURANTS - 0.33% Boyd Gaming Corp., 9.25% due 08/01/2009 1,000,000 1,117,500 Harrahs Operating Company, Inc., 7.125% due 06/01/2007 420,000 467,708 ------------ 1,585,208 INSURANCE - 1.20% Jackson National Life Insurance Company, 5.25% due 03/15/2007 425,000 455,819 Lincoln National Corp., 6.20% due 12/15/2011 380,000 414,585 MetLife, Inc., 3.911% due 05/15/2005 755,000 776,430 Monumental Global Funding, 5.20% due 01/30/2007 1,125,000 1,200,345 Monumental Global Funding II, 3.85% due 03/03/2008 1,610,000 1,624,393 Nationwide Mutual Insurance Company, 7.875% due 04/01/2033 170,000 196,663 Prudential Financial, 6.375% due 07/23/2006 1,050,000 1,143,791 ------------ 5,812,026 INTERNATIONAL OIL - 0.16% Pogo Producing Company, Series B, 10.375% due 02/15/2009 750,000 795,000 ------------ MANUFACTURING - 0.49% Tyco International Group SA, 6.00% due 11/15/2013 375,000 386,250 6.75% due 02/15/2011 1,200,000 1,311,000 6.125% due 01/15/2009 620,000 663,400 ------------ 2,360,650 MEDICAL-HOSPITALS - 0.58% HCA, Inc., 6.25% due 02/15/2013 1,375,000 1,407,460 6.95% due 05/01/2012 600,000 643,327 7.875% due 02/01/2011 385,000 439,097 8.75% due 09/01/2010 275,000 327,452 ------------ 2,817,336 METAL & METAL PRODUCTS - 0.09% Inco, Ltd., 7.20% due 09/15/2032 400,000 437,259 ------------ MINING - 0.04% Corporacion Nacional del Cobre, 5.50% due 10/15/2013 200,000 202,958 ------------ PAPER - 0.17% International Paper Company, 5.50% due 01/15/2014 280,000 280,669 Norske Skogindustrier ASA, 6.125% due 10/15/2015 540,000 546,810 ------------ 827,479 PHARMACEUTICALS - 0.20% Schering Plough Corp., 5.30% due 12/01/2013 955,000 971,664 ------------ PUBLISHING - 0.41% Time Warner Companies, 7.57% due 02/01/2024 1,750,000 1,979,012 ------------ RAILROADS & EQUIPMENT - 0.04% Union Pacific Railroad Company, Series 2002-1, 6.061% due 01/17/2023 175,000 189,226 ------------ REAL ESTATE - 0.93% Developers Diversified Realty Company, 4.625% due 08/01/2010 125,000 124,316 EOP Operating LP, 6.75% due 02/15/2012 490,000 541,222 Hospitality Properties Trust, REIT, 6.75% due 02/15/2013 640,000 670,558 Kimco Realty Corp., REIT, 3.95% due 08/05/2008 1,150,000 1,152,020 Price REIT, Inc., 7.50% due 11/05/2006 500,000 566,220 Rouse Company, 5.375% due 11/26/2013 520,000 516,729 7.20% due 09/15/2012 320,000 360,696 Socgen Real Estate Company LLC, FRN 7.64% due 12/29/2049 490,000 553,586 ------------ 4,485,347 RETAIL GROCERY - 0.09% Albertsons, Inc., 7.50% due 02/15/2011 370,000 424,151 ------------ SANITARY SERVICES - 0.28% Waste Management, Inc., 6.375% due 11/15/2012 585,000 634,981 Waste Management, Inc., 7.75% due 05/15/2032 625,000 736,521 ------------ 1,371,502 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.17% Deutsche Telekom International Finance BV, 9.25% due 06/01/2032 370,000 507,691 Dobson Communications Corp., 10.875% due 07/01/2010 1,100,000 1,199,000 France Telecom SA, FRN 9.00% due 03/01/2011 960,000 1,153,039
The accompanying notes are an integral part of the financial statements. 208 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------------ ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - CONTINUED Singapore Telecommunications, Ltd., 6.375% due 12/01/2011 $ 75,000 $ 82,896 Telstra Corp. Ltd., 6.375% due 04/01/2012 750,000 828,816 Tritel PCS, Inc., 10.375% due 01/15/2011 1,250,000 1,495,563 Verizon Global Funding Corp., 7.25% due 12/01/2010 340,000 391,472 ------------ 5,658,477 TELEPHONE - 1.29% AT&T Corp., FRN 7.80% due 11/15/2011 360,000 414,353 FRN 8.75% due 11/15/2031 250,000 292,140 SBC Communications, Inc., 5.875% due 02/01/2012 625,000 663,777 Sprint Capital Corp., 8.375% due 03/15/2012 1,640,000 1,915,192 8.75% due 03/15/2032 250,000 295,347 Telecom Italia Capital, 4.00% due 11/15/2008 1,000,000 1,006,330 5.25% due 11/15/2013 825,000 826,643 Telefonos De Mexico SA, 4.50% due 11/19/2008 405,000 405,616 Telus Corp., 8.00% due 06/01/2011 340,000 397,558 ------------ 6,216,956 TOTAL CORPORATE BONDS (Cost: $109,197,973) $116,206,539 ------------ MUNICIPAL BONDS - 0.11% WISCONSIN - 0.11% Badger Tobacco Asset Securitization Corp., 6.125% due 06/01/2027 530,000 518,054 ------------ TOTAL MUNICIPAL BONDS (Cost: $498,883) $ 518,054 ------------ COLLATERALIZED MORTGAGE OBLIGATIONS - 4.36% Ameriquest Mortgage Securities, Inc., Series 2003-5, Class A2, 2.43% due 07/25/2033 500,000 501,121 Banc of America Mortgage Securities, Inc., Series 2003 F, Class 2A1, FRN 3.734% due 07/25/2033 1,675,137 1,692,459 Bear Stearns ARM Trust, Series 2003-2, FRN 3.703% due 01/25/2033 670,176 672,354 Series 2003-3, Class 2A2, FRN 4.210% due 05/25/2033 460,866 460,481 Chase Commercial Mortgage Securities Corp., Series 2000-2, Class C, FRN 7.928% due 07/15/2032 1,500,000 1,775,674 CS First Boston Mortgage Securities Corp., Series 2001-CF2, Class A2, FRN 5.935% due 02/15/2034 3,175,000 3,371,842 Series 2001-CF2, Class A3, FRN 6.24% due 02/15/2034 1,185,000 1,301,007 Series 2003-AR12, Class 2A2, FRN 4.377% due 04/25/2033 468,893 469,063 FHLMC Structured Pass Through Securities, T-41, Class 3A, 7.50% due 07/25/2032 780,042 854,146 First Investors Auto Owner Trust, Series 2002-A, Class A, FRN 3.46% due 12/15/2008 35,591 36,014 First Union National Bank Commercial Mortgage Trust, Series 2002- C1, Class A1, 5.585% due 02/12/2034 994,898 1,063,587 GE Capital Commercial Mortgage Corp., Series 2001-1, Class A1, FRN 6.079% due 05/15/2033 176,505 190,542 GMAC Commercial Mortgage Security, Inc., Series 1997-C1, Class A3, FRN 6.869% due 07/15/2029 375,000 414,747 Merrill Lynch Mortgage Investors, Inc., Series 1995-C2, Class A1, FRN 6.926% due 06/15/2021 221,108 223,319 Series 1997-C1, Class A3, 7.12% due 06/18/2029 312,252 339,867 Morgan Stanley Capital I, Inc., Class A, FRN 1.78% due 07/14/2016 445,896 445,896 Residential Asset Security Corp., Series 1999-KS4, Class AI4, FRN 7.22% due 06/25/2028 618,757 650,021 Residential Funding Mortgage Securities II, Series 2001-HS2, Class A4, 6.43% due 04/25/2016 281,288 284,542 Salomon Brothers Commercial Mortgage Securities, Class A3, Series 2001-C1, 6.428% due 12/18/2035 1,250,000 1,388,827 Structured Asset Securities Corp., Series 1998-RF2, Class A, FRN 8.540% due 07/15/2027 1,142,816 1,261,958 Washington Mutual, Series 2003-AR1, Class A6, FRN 4.537% due 03/25/2033 274,301 274,468 Series 2003-AR6, Class A1, FRN 4.38% due 06/25/2033 3,384,955 3,412,502 ------------ TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost: $20,551,387) $ 21,084,437 ------------ ASSET BACKED SECURITIES - 1.81% ACLC Business Loan Receivables Trust, Series 2002-1A, Class A1, FRN 5.408% due 12/15/2022 307,225 310,543 California Infrastructure Development, Series 1997-1, Class A7, FRN 6.42% due 09/25/2008 1,097,575 1,167,405 Chase Funding Mortgage Loan, Series 2003-1, Class 1A3, FRN 3.14% due 07/25/2023 450,000 454,138 Chase Funding Mortgage Loan, Series 2003-2, Class 1A3, FRN 2.864% due 12/25/2024 470,000 471,245 Conseco Finance Securitizations, Series 2000-F, Class AF4, 7.67% due 09/15/2026 498,853 500,371
The accompanying notes are an integral part of the financial statements. 209 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------------ ------------ ASSET BACKED SECURITIES - CONTINUED Government Lease Trust, Series 1999-GSA1, Class A2, 6.18% due 05/18/2005 $ 1,396,791 $ 1,438,336 GRCT Consumer Loan Trust, Series 2001-1A, Class 2BRV, FRN 6.251% due 02/15/2020 331,776 340,256 Mangrove Bay Pass Through Trust, FRN 6.102% due 07/15/2033 100,000 97,140 Onyx Acceptance Auto Trust, Series 2002-C, Class A4, 4.07% due 04/15/2009 750,000 772,900 Peco Energy Transition Trust, Series 1999-A, Class A7, FRN 6.13% due 03/01/2009 1,440,000 1,590,309 Sears Credit Account Master Trust, Series 1998-2, Class A, 5.25% due 10/16/2008 833,333 847,137 Vanderbilt Acquisition Loan Trust, Class A3, Series 2002-1, 5.70% due 09/07/2023 750,000 773,255 ------------ TOTAL ASSET BACKED SECURITIES (Cost: $8,695,693) $ 8,763,035 ------------ SHORT TERM INVESTMENTS - 18.69% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 90,346,566 $ 90,346,566 ------------ REPURCHASE AGREEMENTS - 10.61% *** Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40% to be repurchased at $51,288,140 on 01/02/2004, collateralized by $31,255,000 U.S. Treasury Bonds, 9.25% due 02/15/2016 (valued at $45,905,781, including interest) and $5,005,000 U.S. Treasury Bonds, 7.50% due 11/15/2016 (valued at $6,415,514, including interest) $ 51,287,000 $ 51,287,000 ------------ TOTAL INVESTMENTS (DIVERSIFIED BOND TRUST) (Cost: $473,045,267) $483,426,871 ============
SHARES VALUE ------------ ------------ INVESTMENT QUALITY BOND TRUST COMMON STOCK - 0.01% CABLE AND TELEVISION - 0.01% Classic Holdco LLC * 1,137 $ 70,039 ------------ CHEMICALS - 0.00% Pioneer Companies, Inc. * 777 6,333 ------------ TOTAL COMMON STOCK (Cost: $282,300) $ 76,372 ------------ PREFERRED STOCK - 0.03% MINING - 0.00% Fairfield Manufacturing, Inc. * 317 $ 3,963 ------------ PUBLISHING - 0.03% Primedia, Inc., Series H 1,525 139,156 ------------ STEEL - 0.00% Weirton Steel Corp., Series C * 2,700 999 ------------ TOTAL PREFERRED STOCK (Cost: $428,877) $ 144,118 ------------ WARRANTS - 0.00% TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.00% KMC Telecom Holdings, Inc., (Expiration date 04/15/2008; strike price $ .01) * 425 4 ------------ TOTAL WARRANTS (Cost: $0) $ 4 ------------
PRINCIPAL AMOUNT VALUE ------------ ------------ U.S. TREASURY OBLIGATIONS - 9.06% U.S. TREASURY BONDS - 8.05% 6.25% due 08/15/2023 (a) $ 1,760,000 $ 2,006,057 7.50% due 11/15/2016 (a) 3,600,000 4,583,250 8.125% due 08/15/2019 - 08/15/2021 **** (a) 21,470,000 29,195,347 8.75% due 05/15/2017 (a) 1,000,000 1,401,406 8.875% due 02/15/2019 (a) 4,900,000 7,005,471 ------------ 44,191,531 U.S. TREASURY NOTES - 0.57% 5.875% due 11/15/2004 3,000,000 3,120,234 ------------ U.S. TREASURY STRIPS - 0.44% 6.875% PO due 08/15/2025 8,000,000 2,433,784 ------------ TOTAL U.S. TREASURY OBLIGATIONS (Cost: $49,123,726) $ 49,745,549 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 15.54% FEDERAL HOME LOAN BANK - 0.60% 5.80% due 09/02/2008 3,000,000 3,303,708 ------------ FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.07% 5.25% due 01/15/2006 (a) 6,000,000 6,382,302 6.30% due 03/15/2023 251,989 264,236 6.50% due 04/01/2029 - 08/01/2032 881,799 923,873 6.625% due 09/15/2009 (a) 3,000,000 3,430,713 7.50% due 06/01/2010 - 05/01/2028 320,437 344,237 ------------ 11,345,361 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 5.72% FRN 4.685% due 05/01/2013 1,687,566 1,709,820 FRN 5.636% due 12/01/2011 1,733,992 1,864,245 5.77% due 03/01/2009 2,727,543 2,945,288 FRN 6.009% due 11/01/2011 2,934,054 3,215,910 FRN 6.048% due 03/01/2012 1,203,800 1,321,759 6.085% due 10/01/2011 1,259,259 1,378,753 6.18% due 07/01/2008 340,627 371,673 6.27% due 11/01/2007 1,549,962 1,688,424 6.28% due 04/01/2011 1,000,000 1,093,476 6.30% due 01/01/2008 292,742 319,689
The accompanying notes are an integral part of the financial statements. 210 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------------ ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION - CONTINUED 6.34% due 01/01/2008 $ 263,646 $ 288,071 6.43% due 01/01/2008 297,314 325,941 FRN 6.44% due 02/01/2011 3,600,909 3,967,733 6.447% due 01/01/2008 1,403,252 1,539,149 6.46% due 06/01/2009 1,426,330 1,575,554 6.50% due 09/01/2031 4,668 4,882 6.625% due 09/15/2009 5,000,000 5,717,395 6.63% due 11/15/2030 1,000,000 1,136,886 FRN 6.837% due 10/01/2007 176,921 191,508 7.00% due 06/01/2029 58,817 62,326 7.04% due 03/01/2007 629,309 692,340 ------------ 31,410,822 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 7.02% 6.00% due 08/15/2008 - 07/15/2033 25,457,025 26,500,840 FRN 6.50% due 06/15/2028 - 10/15/2028 633,031 668,386 6.50% due 07/15/2008 - 07/15/2032 1,830,577 1,930,873 FRN 7.00% due 01/15/2028 - 11/15/2028 2,766,893 2,953,631 7.00% due 04/15/2023 - 03/15/2029 3,671,858 3,926,754 7.50% due 06/15/2022 - 10/15/2029 2,265,123 2,439,424 8.00% due 07/15/2030 - 10/15/2030 78,075 84,938 ------------ 38,504,846 HOUSING & URBAN DEVELOPMENT - 0.13% 7.498% due 08/01/2011 600,000 698,531 ------------ TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $ 84,247,793) $ 85,263,268 ------------ FOREIGN GOVERNMENT OBLIGATIONS - 1.00% GOVERNMENT OF CANADA - 0.39% 8.625% due 01/19/2005 2,000,000 2,140,742 ------------ REPUBLIC OF CHILE - 0.30% 6.95% due 07/01/2012 1,499,352 1,627,652 ------------ GOVERNMENT OF RUSSIA - 0.09% 5.00%, Step up to 7.50% on 3/31/2007 due 03/31/2030 500,000 479,375 ------------ REPUBLIC OF SOUTH AFRICA - 0.10% 7.375% due 04/25/2012 510,000 572,475 ------------ REPUBLIC OF TRINIDAD & TOBAGO - 0.12% 9.75% due 07/01/2020 500,000 657,500 ------------ TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost: $ 5,140,026) $ 5,477,744 ------------ CORPORATE BONDS - 50.86% ADVERTISING - 0.06% Advanstar Communications Inc., 10.75% due 08/15/2010 85,000 92,012 Lamar Media Corp., 7.25% due 01/01/2013 40,000 43,000 RH Donnelley Finance Corp., Series I, 10.875% due 12/15/2012 180,000 213,525 ------------ 348,537 AEROSPACE - 0.21% Northrop Grumman Corp., 7.875% due 03/01/2026 115,000 138,985 Raytheon Company, 4.85% due 01/15/2011 800,000 806,376 Sequa Corp., Series B, 8.875% due 04/01/2008 70,000 75,950 9.00% due 08/01/2009 130,000 143,325 ------------ 1,164,636 AGRICULTURE - 0.21% Monsanto Company, 7.375% due 08/15/2012 1,000,000 1,141,123 ------------ AIR TRAVEL - 0.97% American Airlines, 3.857% due 07/09/2010 250,000 247,077 Argo-Tech Corp., 8.625% due 10/01/2007 195,000 190,125 Continental Airlines, Series 981A, 6.648% due 03/15/2019 823,496 804,551 Series 1997-4, Class 4A, 6.90% due 01/02/2018 1,095,488 1,081,319 Delta Air Lines Inc., Class G, 6.718% due 07/02/2024 1,414,830 1,514,006 7.90% due 12/15/2009 (a) 215,000 173,881 Series 2000 1 Class B, 7.92% due 05/18/2012 330,000 298,791 Northwest Airlines, Inc., Class G, FRN 8.072% due 04/01/2021 772,846 849,384 8.875% due 06/01/2006 * 35,000 31,762 9.875% due 03/15/2007 (a) 125,000 113,750 ------------ 5,304,646 ALUMINUM - 0.30% Alcan Aluminum, Ltd., 6.125% due 12/15/2033 200,000 201,219 6.45% due 03/15/2011 440,000 491,325 Alcoa, Inc., 6.75% due 01/15/2028 (a) 800,000 888,934 Century Aluminum Company, 11.75% due 04/15/2008 75,000 83,625 ------------ 1,665,103 APPAREL & TEXTILES - 0.03% Interface, Inc., 10.375% due 02/01/2010 100,000 105,750 Oxford Industrial, Inc., 8.875% due 06/01/2011 55,000 60,156 ------------ 165,906 AUTO PARTS - 0.45% Accuride Corp., 9.25% due 02/01/2008 (a) 265,000 272,287 CSK Auto Inc., 12.00% due 06/15/2006 225,000 258,188 Dana Corp., 7.00% due 03/01/2029 300,000 298,125 9.00% due 08/15/2011 255,000 307,275 10.125% due 03/15/2010 (a) 20,000 23,300 Dura Operating Corp., Series B, 8.625% due 04/15/2012 75,000 79,875 Series D, 9.00% due 05/01/2009 (a) 60,000 60,000 LDM Technologies, Inc., Series B, 10.75% due 01/15/2007 215,000 217,150 Lear Corp., Series B, 8.11% due 05/15/2009 145,000 170,556
The accompanying notes are an integral part of the financial statements. 211 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ---------- ----------- AUTO PARTS - CONTINUED Metaldyne Corp., 10.00% due 11/01/2013 $ 90,000 $ 90,900 Tenneco Automotive, Inc., 10.25% due 07/15/2013 50,000 56,875 TRW Automotive, Inc., 11.00% due 02/15/2013 85,000 100,088 Visteon Corp., 7.95% due 08/01/2005 500,000 531,829 ----------- 2,466,448 AUTO SERVICES - 0.07% Delco Remy International, Inc., 8.625% due 12/15/2007 70,000 71,575 10.625% due 08/01/2006 40,000 40,200 United Rentals North America, Inc., 7.75% due 11/15/2013 175,000 180,250 Series B, 10.75% due 04/15/2008 80,000 90,000 ----------- 382,025 AUTOMOBILES - 0.59% Chrysler Corp., 7.45% due 02/01/2097 (a) 1,000,000 1,017,657 General Motors Corp., 8.25% due 07/15/2023 1,975,000 2,242,433 ----------- 3,260,090 BANKING - 5.51% Bank America Corp., 4.375% due 12/01/2010 1,750,000 1,754,414 7.40% due 01/15/2011 1,500,000 1,759,245 Bayerische Landesbank Girozentrale, 5.65% due 02/01/2009 200,000 217,194 Chase Manhattan Corp., 7.00% due 11/15/2009 (a) 1,000,000 1,152,543 Chevy Chase Bank FSB, 6.875% due 12/01/2013 65,000 66,625 Citicorp, 6.375% due 11/15/2008 600,000 663,638 Credit National, 7.00% due 11/14/2005 1,300,000 1,415,700 First Financial Caribbean Corp., 7.84% due 10/10/2006 810,000 886,293 First Massachusetts Bank NA, 7.625% due 06/15/2011 1,000,000 1,170,498 First Republic Bank of San Francisco, 7.75% due 09/15/2012 825,000 894,094 First Union National Bank Chase, FRN 6.645% due 06/15/2031 3,000,000 3,350,205 First Union National Bank, Series bnkt, 6.919% due 12/15/2036 500,000 551,298 Series BNKT, 7.80% due 08/18/2010 1,500,000 1,809,706 Frost National Bank, 6.875% due 08/01/2011 1,000,000 1,118,666 HBOS PLC MTN, 6.00% due 11/01/2033 820,000 815,182 Huntington National Bank, 4.90% due 01/15/2014 500,000 493,602 National Australia Bank Ltd., 8.60% due 05/19/2010 175,000 216,714 National City Corp., 6.875% due 05/15/2019 1,000,000 1,154,331 NBD Bancorp, 8.25% due 11/01/2024 2,000,000 2,518,944 People's Bank/ Bridgeport CT, 9.875% due 11/15/2010 1,000,000 1,207,581 Popular North America, Inc., 6.625% due 01/15/2004 1,350,000 1,351,783 Regions Financial Corp., 7.00% due 03/01/2011 95,000 107,096 Republic New York Corp., 9.50% due 04/15/2014 1,000,000 1,306,273 Royal Bank Scotland Group PLC, 6.40% due 04/01/2009 2,750,000 3,082,197 Wells Fargo Bank NA, 7.55% due 06/21/2010 1,000,000 1,185,250 ----------- 30,249,072 BIOTECHNOLOGY - 0.01% Bio Rad Laboratories, Inc., 7.50% due 08/15/2013 35,000 38,500 ----------- BROADCASTING - 1.91% British Sky Broadcasting Group, PLC, 6.875% due 02/23/2009 2,000,000 2,244,984 Canwest Media, Inc., 10.625% due 05/15/2011 190,000 217,075 CBS, Inc., 7.125% due 11/01/2023 250,000 278,285 Chancellor Media Corp., 8.00% due 11/01/2008 400,000 463,000 Charter Communications Holdings, 8.625% due 04/01/2009 225,000 196,313 zero coupon, Step up to 9.92% on 04/01/2004 due 04/01/2011 55,000 47,025 zero coupon, Step up to 13.50% on 01/15/2006 due 01/15/2011 795,000 592,275 Clear Channel Communications, Inc., 7.65% due 09/15/2010 675,000 790,115 Comcast Cable Communications, 8.50% due 05/01/2027 1,400,000 1,793,679 Corus Entertainment, Inc., 8.75% due 03/01/2012 160,000 176,000 CSC Holdings, Inc., Series B, 7.625% due 04/01/2011 305,000 321,013 9.875% due 02/15/2013 (a) 100,000 104,500 Grupo Televisa S.A., 8.50% due 03/11/2032 300,000 315,000 LBI Media, Inc., zero coupon, Step up to 11.00% on 10/15/2008 due 10/15/2013 155,000 100,363 Liberty Media Group, 7.75% due 07/15/2009 700,000 802,598 Quebecor Media, Inc., 11.125% due 07/15/2011 380,000 439,850 zero coupon, Step up to 13.75% on 07/15/2006 due 07/15/2011 85,000 74,906 Viacom, Inc., 7.75% due 06/01/2005 1,035,000 1,119,113 7.875% due 07/30/2030 (a) 165,000 205,248 Vivendi Universal, SA, 9.25% due 04/15/2010 160,000 189,600 ----------- 10,470,942 BUILDING MATERIALS & CONSTRUCTION - 0.49% American Standard, Inc., 7.625% due 02/15/2010 70,000 79,450 Koppers Inc.,, 9.875% due 10/15/2013 155,000 170,888 Lowe's Companies, Inc., 6.50% due 03/15/2029 1,100,000 1,190,136
The accompanying notes are an integral part of the financial statements. 212 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ---------- ----------- BUILDING MATERIALS & CONSTRUCTION - CONTINUED Lowe's Companies, Inc., 7.50% due 12/15/2005 $ 350,000 $ 386,335 Masco Corp., 5.75% due 10/15/2008 700,000 753,864 Nortek Holdings, Inc., zero coupon, Step up to 10.00% on 11/15/2007 due 05/15/2011 130,000 94,250 ----------- 2,674,923 BUSINESS SERVICES - 0.52% EOP Operating LP, 6.50% due 01/15/2004 795,000 795,970 Federal Express Corp., Series 1998 1A, 6.72% due 01/15/2022 1,310,243 1,462,100 Iron Mountain, Inc., 8.25% due 07/01/2011 250,000 262,500 Sensus Metering Systems, Inc., 8.625% due 12/15/2013 55,000 56,444 True Temper Sports, Inc., 10.875% due 12/01/2008 115,000 121,900 Xerox Corp., 9.75% due 01/15/2009 135,000 157,950 ----------- 2,856,864 CABLE AND TELEVISION - 0.69% AOL Time Warner, Inc., 7.625% due 04/15/2031 210,000 242,291 Cox Communications Inc., 5.50% due 10/01/2015 250,000 251,477 7.125% due 10/01/2012 615,000 709,349 Cox Enterprises, Inc.,, 4.375% due 05/01/2008 475,000 482,544 EchoStar DBS Corp., 6.375% due 10/01/2011 200,000 205,000 Lin Television Corp., 6.50% due 05/15/2013 (a) 160,000 160,200 Lodgenet Entertainment Corp., 9.50% due 06/15/2013 80,000 87,600 Mediacom Broadband LLC, 11.00% due 07/15/2013 (a) 150,000 168,375 Mediacom LLC/Mediacom Capital Corp., 9.50% due 01/15/2013 (a) 260,000 275,600 Rogers Cable, Inc., 6.25% due 06/15/2013 55,000 55,412 Shaw Communications, Inc., 7.25% due 04/06/2011 10,000 10,813 8.25% due 04/11/2010 85,000 96,262 TCI Communications Inc., 8.75% due 08/01/2015 800,000 1,012,419 Videotron Ltee, 6.875% due 01/15/2014 15,000 15,488 ----------- 3,772,830 CELLULAR COMMUNICATIONS - 1.15% American Tower Corp., 9.375% due 02/01/2009 (a) 130,000 138,450 AT&T Wireless Services, Inc., 7.875% due 03/01/2011 700,000 810,002 8.125% due 05/01/2012 420,000 493,899 8.75% due 03/01/2031 500,000 616,915 Cingular Wireless LLC, 7.125% due 12/15/2031 1,000,000 1,078,639 Crown Castle International Corp., 7.50% due 12/01/2013 185,000 185,925 Nextel Communications, Inc., 9.50% due 02/01/2011 550,000 621,500 Nextel Partners, Inc., 8.125% due 07/01/2011 175,000 186,375 Rogers Cantel, Inc., 9.75% due 06/01/2016 50,000 60,250 Rogers Wireless Inc., 9.625% due 05/01/2011 515,000 615,425 SBA Communications Corp., zero coupon, Step up to 9.75% on 12/15/2007 due 12/15/2011 135,000 95,175 Triton PCS, Inc., 8.75% due 11/15/2011 (a) 330,000 325,050 Vodafone Group PLC, 7.75% due 02/15/2010 825,000 977,786 Western Wireless Corp., 9.25% due 07/15/2013 90,000 94,950 ----------- 6,300,341 CHEMICALS - 0.61% Acetex Corp., 10.875% due 08/01/2009 75,000 83,250 Airgas, Inc., 9.125% due 10/01/2011 30,000 33,675 Arco Chemical Company, 9.80% due 02/01/2020 120,000 120,600 Dow Chemical Company, 5.75% due 12/15/2008 400,000 428,872 6.00% due 10/01/2012 400,000 421,054 ICI Wilmington, Inc., 6.95% due 09/15/2004 (a) 720,000 742,454 IMC Global, Inc., Series B, 10.875% due 06/01/2008 275,000 302,500 11.25% due 06/01/2011 30,000 33,000 Kraton Polymers LLC, 8.125% due 01/15/2014 25,000 26,000 Lyondell Chemical Company, Series A, 9.625% due 05/01/2007 70,000 74,200 Series B, 9.875% due 05/01/2007 370,000 390,350 Methanex Corp., 8.75% due 08/15/2012 70,000 78,050 Millennium America, Inc., 9.25% due 06/15/2008 85,000 92,650 Nalco Company, 7.75% due 11/15/2011 50,000 53,500 8.875% due 11/15/2013 90,000 95,400 Noveon, Inc., Series B, 11.00% due 02/28/2011 20,000 23,200 Omnova Solutions, Inc., 11.25% due 06/01/2010 80,000 88,800 Pioneer Companies, Inc., FRN 4.640% due 12/31/2006 3,810 3,448 Texas Petrochemicals Corp., Series B, 11.125% due 07/01/2006 250,000 75,000 Union Carbide Chemicals & Plastics, 7.875% due 04/01/2023 20,000 18,000 Union Carbide Corp., 6.79% due 06/01/2025 (a) 75,000 73,875 United Industries Corp., 9.875% due 04/01/2009 75,000 78,562 ----------- 3,336,440 COAL - 0.05% Massey Energy Company, 6.625% due 11/15/2010 55,000 56,650 6.95% due 03/01/2007 205,000 210,125 ----------- 266,775
The accompanying notes are an integral part of the financial statements. 213 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ---------- ----------- COMPUTERS & BUSINESS EQUIPMENT - 0.21% Computer Sciences Corp., 7.375% due 06/15/2011 $ 145,000 $ 170,523 Hewlett Packard Company, 6.50% due 07/01/2012 (a) 700,000 777,508 Xerox Capital Europe PLC, 5.875% due 05/15/2004 200,000 202,000 ----------- 1,150,031 CONSTRUCTION & MINING EQUIPMENT - 0.03% Webb Delaware Corp., 10.25% due 02/15/2010 150,000 159,563 ----------- CONTAINERS & GLASS - 0.22% Anchor Glass Container Corp., 11.00% due 02/15/2013 115,000 133,400 Crown European Holdings SA, 10.875% due 03/01/2013 155,000 182,319 Four M Corp., 12.00% due 06/01/2006 15,000 14,925 Graphic Packaging International, Inc., 8.50% due 08/15/2011 30,000 32,850 Owens Brockway Glass Container, 8.25% due 05/15/2013 310,000 332,862 Owens-Illinois, Inc., Series 2008, 7.35% due 05/15/2008 (a) 40,000 41,050 Stone Container Corp., 8.375% due 07/01/2012 80,000 86,800 9.25% due 02/01/2008 185,000 204,425 9.75% due 02/01/2011 120,000 132,600 Tekni-Plex, Inc., 8.75% due 11/15/2013 50,000 52,125 ----------- 1,213,356 COSMETICS & TOILETRIES - 0.08% Johnsondiversey Holdings Inc., zero coupon, Step up to 10.67% on 05/15/2007 due 05/15/2013 145,000 110,925 Johnsondiversey, Inc., 9.625% due 05/15/2012 35,000 39,025 Playtex Products, Inc., 9.375% due 06/01/2011 (a) 200,000 202,000 Revlon Consumer Products Corp., 12.00% due 12/01/2005 (a) 100,000 100,000 ----------- 451,950 CRUDE PETROLEUM & NATURAL GAS - 0.29% Burlington Resources Finance Company, 7.40% due 12/01/2031 625,000 739,882 KN Energy, Inc., 6.65% due 03/01/2005 795,000 839,623 ----------- 1,579,505 DOMESTIC OIL - 0.73% Chesapeake Energy Corp., 6.875% due 01/15/2016 90,000 92,700 Devon Financing Corp., ULC, 6.875% due 09/30/2011 1,150,000 1,304,014 Motiva Enterprises LLC, 5.20% due 09/15/2012 1,100,000 1,119,831 Parker Drilling Company, 9.625% due 10/01/2013 90,000 93,600 Pioneer Natural Resources Company, 9.625% due 04/01/2010 190,000 236,440 Premcor Refining Group, Inc., 7.75% due 02/01/2012 270,000 278,100 Pride International, Inc., 10.00% due 06/01/2009 255,000 273,487 Valero Energy Corp., 8.75% due 06/15/2030 465,000 580,287 ----------- 3,978,459 DRUGS & HEALTH CARE - 1.17% Alaris Medical, Inc., 7.25% due 07/01/2011 95,000 98,325 Allegiance Corp., 7.00% due 10/15/2026 4,000,000 4,514,268 Beckman Instruments, Inc., 7.45% due 03/04/2008 1,065,000 1,205,351 Biovail Corp, 7.875% due 04/01/2010 85,000 86,700 Neighborcare, Inc., 6.875% due 11/15/2013 90,000 91,125 Omnicare, Inc., 6.125% due 06/01/2013 35,000 35,088 Series B, 8.125% due 03/15/2011 35,000 38,237 Rite Aid Corp., 8.125% due 05/01/2010 335,000 360,125 ----------- 6,429,219 ELECTRICAL EQUIPMENT - 0.22% Energy Corp. of America, Inc. Series A, 9.50% due 05/15/2007 535,000 428,000 General Cable Corp., 9.50% due 11/15/2010 15,000 16,050 Nisource Finance Corp., 3.20% due 11/01/2006 600,000 603,180 Wesco Distribution, Inc., 9.125% due 06/01/2008 145,000 150,075 ----------- 1,197,305 ELECTRIC UTILITIES - 3.73% AES Corp., 9.00% due 05/15/2015 55,000 62,150 AES Corp., 8.875% due 02/15/2011 (a) 175,000 190,750 Alabama Power Company, 5.875% due 12/01/2022 470,000 479,145 American Electric Power Inc., Series A, 6.125% due 05/15/2006 2,000,000 2,155,174 Arizona Public Service Company, 6.375% due 10/15/2011 1,000,000 1,106,481 Avista Corp., 9.75% due 06/01/2008 320,000 380,800 Calpine Corp., 8.50% due 07/15/2010 190,000 185,250 8.50% due 02/15/2011 (a) 250,000 197,813 Carolina Power & Light Company (a), 6.50% due 07/15/2012 1,450,000 1,604,816 Cinergy Corp., 6.125% due 04/15/2004 2,000,000 2,023,904 CMS Energy Corp., 8.50% due 04/15/2011 80,000 86,400 8.90% due 07/15/2008 (a) 260,000 282,100 Commonwealth Edison Company, 6.15% due 03/15/2012 315,000 343,674 Duke Energy Corp., 5.375% due 01/01/2009 1,000,000 1,054,428 Exelon Generation Company LLC, 5.35% due 01/15/2014 650,000 647,349 Florida Power & Light Company, 5.85% due 02/01/2033 230,000 232,213 L-3 Communications Corp., Series B, 8.00% due 08/01/2008 160,000 166,600
The accompanying notes are an integral part of the financial statements. 214 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ---------- ----------- ELECTRIC UTILITIES - CONTINUED Nevada Power Company, 9.00% due 08/15/2013 $ 80,000 $ 88,500 10.875% due 10/15/2009 80,000 92,900 New York State Electric & Gas Corp., 5.75% due 05/01/2023 550,000 523,286 NSTAR, 8.00% due 02/15/2010 2,000,000 2,408,206 Ohio Edison Company, 4.00% due 05/01/2008 550,000 537,879 Old Dominion Electric Coop., 6.25% due 06/01/2011 1,045,000 1,150,994 Oncor Electric Delivery Company, 6.375% due 05/01/2012 615,000 675,877 Pacificorp Secured, MTN, 6.375% due 05/15/2008 1,000,000 1,100,001 PSEG Power LLC, 8.625% due 04/15/2031 590,000 759,888 United Energy Distribution Property Ltd., 5.45% due 04/15/2016 450,000 460,362 Western Resources, Inc., 7.125% due 08/01/2009 280,000 293,325 9.75% due 05/01/2007 150,000 170,438 Wisconsin Electric Power Company, 6.50% due 06/01/2028 700,000 761,163 Wisconsin Energy Corp., 6.20% due 04/01/2033 250,000 248,900 ----------- 20,470,766 ELECTRONICS - 0.11% Imax Corp., 9.625% due 12/01/2010 60,000 63,075 Sanmina-SCI Corp., 10.375% due 01/15/2010 310,000 362,700 Solectron Corp., 9.625% due 02/15/2009 (a) 155,000 172,825 Thomas & Betts Corp., 7.25% due 06/01/2013 25,000 25,750 ----------- 624,350 ENERGY - 0.40% Alliant Energy Resources, Inc., 9.75% due 01/15/2013 450,000 580,145 Midamerican Funding LLC, 6.75% due 03/01/2011 1,000,000 1,122,885 Norsk Hydro ASA, 7.15% due 11/15/2025 300,000 345,210 NRG Energy, Inc., 8.00% due 12/15/2013 130,000 136,663 ----------- 2,184,903 FINANCIAL SERVICES - 11.09% American Financial Group, Inc., 7.125% due 04/15/2009 340,000 365,439 Amerus Capital I, 8.85% due 02/01/2027 750,000 793,445 Arch Western Finance LLC, 6.75% due 07/01/2013 130,000 133,575 Asat Finance LLC, 12.50% due 11/01/2006 85,000 90,206 Associates Corp. of North America, 8.55% due 07/15/2009 600,000 729,608 BanPonce Financial Corp., 6.80% due 12/21/2005 260,000 283,150 Bear Stearns Commercial Mortgage Secs, Inc., FRN 4.680% due 08/13/2039 3,000,000 2,971,165 Beneficial Corp., 8.40% due 05/15/2008 350,000 405,320 Capital One Multi Asset Execut, 3.65% due 07/15/2011 3,075,000 3,069,624 CIT Group, Inc., 6.50% due 02/07/2006 1,000,000 1,082,990 7.625% due 08/16/2005 250,000 271,571 Commercial Credit Group, Inc., 7.375% due 04/15/2005 1,000,000 1,071,553 Credit Suisse First Boston USA, Inc., 6.125% due 11/15/2011 1,300,000 1,415,352 Dime Capital Trust, Class A, 9.33% due 05/06/2027 1,350,000 1,649,079 Equitable Companies, Inc., 7.00% due 04/01/2028 1,000,000 1,118,141 Erac USA Finance Company, 8.00% due 01/15/2011 2,100,000 2,497,664 Ford Motor Credit Company, 7.375% due 10/28/2009 3,700,000 4,063,196 7.875% due 06/15/2010 2,050,000 2,290,598 General Electric Capital Assurance Company, Series 2003-1 Class A5, 5.742% due 05/12/2035 660,000 667,691 General Electric Capital Corp., 6.125% due 02/22/2011 500,000 550,058 MTN, 6.75% due 03/15/2032 2,475,000 2,740,124 General Motors Acceptance Corp., 6.875% due 09/15/2011 1,000,000 1,077,127 7.25% due 03/02/2011 1,000,000 1,097,108 Goldman Sachs Group, Inc., 6.125% due 02/15/2033 955,000 961,727 6.875% due 01/15/2011 800,000 908,486 H.F. Ahmanson & Company, 7.875% due 09/01/2004 525,000 544,630 Hartford Financial Services Group, Inc., 7.90% due 06/15/2010 200,000 236,744 Household Finance Corp., 6.375% due 10/15/2011 - 11/27/2012 1,715,000 1,885,165 7.00% due 05/15/2012 985,000 1,123,262 International Lease Finance Corp., 5.75% due 10/15/2006 700,000 753,124 John Deere Capital Corp., 7.00% due 03/15/2012 400,000 460,796 Lehman Brothers Holdings, Inc., 4.375% due 11/30/2010 500,000 491,255 Manufacturers & Traders Trust Company, 8.00% due 10/01/2010 1,250,000 1,502,630 Marsh & McLennan Companies, Inc., 5.875% due 08/01/2033 500,000 487,485 7.125% due 06/15/2009 1,145,000 1,319,543 MDP Acquisitions PLC, 9.625% due 10/01/2012 60,000 67,200 Morgan Stanley Capital I, Inc., FRN 6.21% due 11/15/2031 3,000,000 3,309,074 Morgan Stanley Dean Witter, 6.60% due 04/01/2012 1,000,000 1,116,839 Morgan Stanley Dean Witter, 6.75% due 04/15/2011 790,000 893,822 Nationwide Financial Services, Inc., 6.25% due 11/15/2011 710,000 758,741 Pemex Finance, Ltd., 8.875% due 11/15/2010 650,000 779,857
The accompanying notes are an integral part of the financial statements. 215 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- FINANCIAL SERVICES - CONTINUED Pemex Project Funding Master Trust, 8.625% due 02/01/2022 $1,000,000 $ 1,107,500 9.125% due 10/13/2010 1,000,000 1,187,500 Private Export Funding Corp., Series WW, 6.62% due 10/01/2005 2,000,000 2,163,330 Qwest Capital Funding, Inc., 7.25% due 02/15/2011 (a) 50,000 49,250 Sun Canada Financial Company, 7.25% due 12/15/2015 1,700,000 1,916,942 Sunamerica, Inc., 8.125% due 04/28/2023 1,000,000 1,258,369 TIAA Global Markets, 4.125% due 11/15/2007 740,000 761,743 Ucar Finance, Inc., 10.25% due 02/15/2012 80,000 92,000 UFJ Finance Aruba AEC, 6.75% due 07/15/2013 500,000 533,250 United States Bancorp Oregon, 7.50% due 06/01/2026 2,774,000 3,270,557 United States West Capital Funding, Inc., 6.25% due 07/15/2005 440,000 444,400 Western Financial Bank, 9.625% due 05/15/2012 35,000 39,025 ----------- 60,858,030 FOOD & BEVERAGES - 0.95% Companhia Brasileira De, 8.75% due 09/15/2013 1,050,000 1,113,000 Delhaize America, Inc., 8.125% due 04/15/2011 70,000 80,500 Great Atlantic & Pacific Tea Company, Inc., 9.125% due 12/15/2011 (a) 285,000 260,775 Kraft Foods, Inc., 5.625% due 11/01/2011 450,000 474,141 6.50% due 11/01/2031 1,230,000 1,285,195 Pepsi Bottling Group, Inc., Series B, 7.00% due 03/01/2029 500,000 573,014 Tyson Foods, Inc., 8.25% due 10/01/2011 1,200,000 1,391,477 United Agri Products, Inc., 8.25% due 12/15/2011 35,000 35,963 ----------- 5,214,065 FOREST PRODUCTS - 0.05% Tembec Industries, Inc., 8.625% due 06/30/2009 240,000 247,200 ----------- FUNERAL SERVICES - 0.00% Service Corp. International, 7.70% due 04/15/2009 10,000 10,675 ----------- GAS & PIPELINE UTILITIES - 1.16% Duke Energy Field Services, 5.75% due 11/15/2006 250,000 267,588 Dynegy Holdings Inc., 10.125% due 07/15/2013 240,000 276,000 El Paso Corp., 7.00% due 05/15/2011 (a) 885,000 816,413 Kinder Morgan Energy Partners, 7.125% due 03/15/2012 800,000 916,514 Northern Border Partners, LP, 7.10% due 03/15/2011 1,000,000 1,111,425 Praxair, Inc., 6.50% due 03/01/2008 605,000 672,245 Schlumberger Technology Corp., 6.50% due 04/15/2012 1,500,000 1,671,238 Semco Energy, Inc., 7.125% due 05/15/2008 15,000 15,619 7.75% due 05/15/2013 20,000 21,025 Suburban Propane Partners LP, 6.875% due 12/15/2013 10,000 10,100 Williams Companies, Inc., 7.125% due 09/01/2011 530,000 560,475 8.625% due 06/01/2010 30,000 33,675 ----------- 6,372,317 HEALTHCARE PRODUCTS - 0.17% Bristol-Myers Squibb Company, 5.75% due 10/01/2011 800,000 864,498 Icon Health & Fitness, 11.25% due 04/01/2012 45,000 49,050 Kinetic Concepts, Inc., 7.375% due 05/15/2013 35,000 36,050 ----------- 949,598 HEALTHCARE SERVICES - 0.28% Extendicare Health Services, Inc., 9.35% due 12/15/2007 60,000 61,800 9.50% due 07/01/2010 25,000 27,750 Genesis Healthcare Corp., 8.00% due 10/15/2013 85,000 88,613 Health Net, Inc., 8.375% due 04/15/2011 775,000 931,218 Healthsouth Corp., 7.375% due 10/01/2006 (a)+++ 215,000 204,787 Radiologix, Inc., 10.50% due 12/15/2008 205,000 205,000 ----------- 1,519,168 HOMEBUILDERS - 0.67% Beazer Homes USA, Inc., 8.625% due 05/15/2011 240,000 264,000 Centex Corp., 7.875% due 02/01/2011 1,000,000 1,175,764 Champion Enterprises Inc., 7.625% due 05/15/2009 65,000 59,231 D. R. Horton, Inc., 9.75% due 09/15/2010 265,000 315,350 KB Home, 9.50% due 02/15/2011 195,000 217,425 Lennar Corp., 5.95% due 03/01/2013 265,000 277,285 Pulte Homes, Inc., 8.125% due 03/01/2011 930,000 1,104,278 Standard Pacific Corp., 8.00% due 02/15/2008 50,000 51,125 8.50% due 04/01/2009 45,000 46,800 9.50% due 09/15/2010 145,000 161,675 ----------- 3,672,933 HOTELS & RESTAURANTS - 0.37% Aztar Corp., 9.00% due 08/15/2011 80,000 87,800 Host Marriott LP, 9.25% due 10/01/2007 35,000 39,113 REIT, 9.50% due 01/15/2007 295,000 328,187 Mandalay Resort Group, 9.375% due 02/15/2010 175,000 203,875 10.25% due 08/01/2007 135,000 155,925 MGM Mirage, Inc., 8.375% due 02/01/2011 (a) 385,000 436,012 8.50% due 09/15/2010 50,000 57,375
The accompanying notes are an integral part of the financial statements. 216 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- HOTELS & RESTAURANTS - CONTINUED Park Place Entertainment Corp., 8.125% due 05/15/2011 $ 285,000 $ 319,556 Riviera Holdings Corp., 11.00% due 06/15/2010 185,000 191,938 Station Casinos, Inc., 8.875% due 12/01/2008 200,000 207,000 ----------- 2,026,781 HOUSEHOLD PRODUCTS - 0.25% Procter & Gamble, Series A, 9.36% due 01/01/2021 1,000,000 1,341,330 Resolution Performance Products, Inc. (a), 9.50% due 04/15/2010 35,000 35,525 ----------- 1,376,855 INDUSTRIAL MACHINERY - 0.07% Case New Holland, Inc., 9.25% due 08/01/2011 235,000 263,200 Cummins, Inc., 9.50% due 12/01/2010 35,000 40,250 Numatics, Inc., 9.625% due 04/01/2008 85,000 68,106 ----------- 371,556 INDUSTRIALS - 0.25% Archer Daniels Midland Company, 6.75% due 12/15/2027 1,000,000 1,106,837 Champion Home Builders Company, 11.25% due 04/15/2007 25,000 27,031 Meritage Corp., 9.75% due 06/01/2011 10,000 11,175 Peabody Energy Corp., 6.875% due 03/15/2013 65,000 68,575 Tesoro Petroleum Corp., 8.00% due 04/15/2008 80,000 85,000 The Manitowoc Company, Inc., 10.50% due 08/01/2012 80,000 91,100 Williams Companies, Inc., 1.00% due 03/15/2012 5,000 5,550 ----------- 1,395,268 INSURANCE - 4.82% AAG Holding Company, Inc., 6.875% due 06/01/2008 1,710,000 1,742,835 ACE Capital Trust II, 9.70% due 04/01/2030 400,000 521,620 Amerus Group Company, 6.95% due 06/15/2005 715,000 751,002 Anthem Insurance Companies, Inc., 9.125% due 04/01/2010 700,000 879,995 Equitable Life Assurance Society, 7.70% due 12/01/2015 680,000 808,497 Fidelity National Financial, Inc., 7.30% due 08/15/2011 1,000,000 1,135,924 Florida Windstorm Underwriting Association, Series 1999, 7.125% due 02/25/2019 3,720,000 4,352,080 Jackson National Life Insurance Company, 8.15% due 03/15/2027 1,500,000 1,757,542 Liberty Mutual Insurance Company, 7.697% due 10/15/2097 1,870,000 1,681,171 Mony Group, Inc., 7.45% due 12/15/2005 650,000 710,776 Nationwide Mutual Insurance Company, 8.25% due 12/01/2031 1,000,000 1,201,721 New York Life Insurance Company, 5.875% due 05/15/2033 265,000 263,378 Ohio National Life Insurance Company, 8.50% due 05/15/2026 1,150,000 1,331,509 Principal Life Global Funding I, 6.125% due 10/15/2033 805,000 805,687 Provident Companies, Inc., 7.00% due 07/15/2018 500,000 502,567 7.25% due 03/15/2028 500,000 499,245 Prudential Commercial Mortgage Trust, FRN 4.493% due 02/11/2036 3,000,000 2,943,475 Prudential Financial, 7.65% due 07/01/2007 650,000 727,044 Reinsurance Group of America, Inc., 6.75% due 12/15/2011 1,000,000 1,096,276 Safeco Corp., 7.25% due 09/01/2012 (a) 270,000 310,179 The St. Paul Companies, Inc., 5.75% due 03/15/2007 575,000 621,189 XL Capital Finance PLC, 6.50% due 01/15/2012 765,000 837,326 Zurich Reinsurance Centre Holdings, Inc., 7.125% due 10/15/2023 1,000,000 968,289 ----------- 26,449,327 INTERNATIONAL OIL - 0.20% Canadian Natural Resources Ltd., 6.45% due 06/30/2033 275,000 290,748 El Paso Production Holding Company,, 7.75% due 06/01/2013 95,000 93,575 Halliburton Company, 5.50% due 10/15/2010 685,000 716,385 ----------- 1,100,708 INTERNET RETAIL - 0.20% InterActiveCorp, 7.00% due 01/15/2013 1,000,000 1,102,578 ----------- INVESTMENT COMPANIES - 0.51% Canadian Oil Sands, 7.90% due 09/01/2021 1,000,000 1,119,449 John Hancock Global Funding, 7.90% due 07/02/2010 1,400,000 1,668,262 ----------- 2,787,711 LEISURE TIME - 0.54% AOL Time Warner, Inc., 7.70% due 05/01/2032 1,500,000 1,750,659 Equinox Holdings, Inc., 9.00% due 12/15/2009 15,000 15,488 International Game Technology, 8.375% due 05/15/2009 780,000 933,705 River Rock Entertainment Authority, 9.75% due 11/01/2011 50,000 53,687 Six Flags, Inc., 9.75% due 04/15/2013 210,000 221,025 ----------- 2,974,564 MANUFACTURING - 0.11% Tyco International Group SA, 6.125% due 01/15/2009 40,000 42,800 6.375% due 10/15/2011 305,000 325,969 6.75% due 02/15/2011 230,000 251,275 ----------- 620,044 MEDICAL-HOSPITALS - 0.09% Beverly Enterprises, Inc., 9.625% due 04/15/2009 (a) 270,000 297,675
The accompanying notes are an integral part of the financial statements. 217 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- MEDICAL-HOSPITALS - CONTINUED NDCHealth Corp., 10.50% due 12/01/2012 $ 175,000 $ 196,875 ----------- 494,550 METAL & METAL PRODUCTS - 0.06% Fasten Tech, Inc., 11.50% due 05/01/2011 85,000 91,906 Inco, Ltd., 5.70% due 10/15/2015 250,000 252,529 ----------- 344,435 MINING - 0.12% Corporacion Nacional Del Cobre de Chile - CODELCO, 6.375% due 11/30/2012 615,000 665,333 ----------- NEWSPAPERS - 0.19% News America Holdings, Inc., 9.25% due 02/01/2013 810,000 1,044,902 ----------- OFFICE FURNISHINGS & SUPPLIES - 0.01% Xerox Corp., 7.625% due 06/15/2013 45,000 48,600 ----------- PAPER - 1.16% Abitibi Consolidated, Inc., 7.875% due 08/01/2009 700,000 756,993 8.55% due 08/01/2010 320,000 356,352 Blue Ridge Paper Product, Inc., 9.50% due 12/15/2008 35,000 35,000 Boise Cascade Corp., 6.50% due 11/01/2010 85,000 88,669 Boise Cascade Office Products Company, 7.05% due 05/15/2005 1,935,000 2,015,720 Caraustar Industries, Inc., 9.875% due 04/01/2011 (a) 125,000 135,000 Georgia Pacific Corp., 8.875% due 02/01/2010 605,000 689,700 Longview Fibre Company, 10.00% due 01/15/2009 55,000 60,362 Norske Skog Canada, 8.625% due 06/15/2011 100,000 105,000 Pacifica Papers, Inc., 10.00% due 03/15/2009 225,000 238,500 Temple-Inland, Inc., 7.875% due 05/01/2012 800,000 927,709 Westvaco Corp., 7.95% due 02/15/2031 550,000 633,829 Willamette Industries, Inc., 7.00% due 02/01/2018 300,000 322,776 ----------- 6,365,610 PETROLEUM SERVICES - 0.31% Baker Hughes, Inc., 6.875% due 01/15/2029 (a) 200,000 226,473 Giant Industries, Inc., 11.00% due 05/15/2012 120,000 129,600 Murphy Oil Corp., 7.05% due 05/01/2029 450,000 499,727 Tesoro Petroleum Corp., Series B, 9.00% due 07/01/2008 95,000 98,562 Tom Brown, Inc., 7.25% due 09/15/2013 85,000 89,888 Transocean Sedco Forex, 6.625% due 04/15/2011 600,000 669,741 ----------- 1,713,991 PHARMACEUTICALS - 0.33% AmerisourceBergen Corp., 8.125% due 09/01/2008 20,000 22,550 Schering Plough Corp., 6.50% due 12/01/2033 1,070,000 1,113,052 Schering Plough Corp., 5.30% due 12/01/2013 (a) 630,000 640,993 Valeant Pharmaceuticals, 7.00% due 12/15/2011 20,000 20,600 ----------- 1,797,195 PLASTICS - 0.04% AEP Industry, Inc., 9.875% due 11/15/2007 (a) 130,000 130,650 Resolution Performance Products, Inc. (a), 13.50% due 11/15/2010 90,000 78,300 ----------- 208,950 PUBLISHING - 0.52% American Media Operations, Inc., 8.875% due 01/15/2011 5,000 5,425 Dex Media West LLC, 9.875% due 08/15/2013 245,000 284,813 E.W. Scripps Company, 6.625% due 10/15/2007 500,000 560,914 Liberty Group Operating, Inc., 9.375% due 02/01/2008 60,000 60,600 Medianews Group, Inc., 6.875% due 10/01/2013 90,000 91,350 Primedia, Inc., 8.875% due 05/15/2011 40,000 42,200 Scholastic Corp., 5.00% due 04/15/2013 265,000 261,693 5.75% due 01/15/2007 355,000 380,369 Time Warner, Inc., 7.25% due 10/15/2017 1,025,000 1,166,323 ----------- 2,853,687 RAILROADS & EQUIPMENT - 0.18% Canadian National Railway Company, FRN 7.375% due 10/15/2031 500,000 589,889 Kansas City Southern Railway, 9.50% due 10/01/2008 370,000 410,700 ----------- 1,000,589 REAL ESTATE - 1.21% AMB Property LP, 7.50% due 06/30/2018 420,000 482,167 CBRE Escrow, Inc., 9.75% due 05/15/2010 35,000 38,850 Duke Realty Corp. LP, 5.25% due 01/15/2010 555,000 580,163 Health Care Property Investors, Inc., 6.00% due 03/01/2015 500,000 516,109 Healthcare Realty Trust, Inc., 8.125% due 05/01/2011 1,500,000 1,717,712 Lennar Corp., 7.625% due 03/01/2009 235,000 271,103 Liberty Property LP, 7.25% due 03/15/2011 1,500,000 1,710,908 Regency Centers LP, 7.95% due 01/15/2011 700,000 824,149 Spieker Properties LP, 7.25% due 05/01/2009 450,000 516,323 ----------- 6,657,484 RETAIL GROCERY - 0.13% Couche Tard United States LP,, 7.50% due 12/15/2013 20,000 20,950
The accompanying notes are an integral part of the financial statements. 218 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- RETAIL GROCERY - CONTINUED General Mills Inc., 6.00% due 02/15/2012 $ 425,000 $ 454,481 Winn-Dixie Stores, Inc., 8.875% due 04/01/2008 (a) 230,000 233,450 ----------- 708,881 RETAIL TRADE - 0.17% El Pollo Loco, Inc., 9.25% due 12/15/2009 125,000 126,562 Gap, Inc., FRN 8.800% due 12/15/2008 100,000 123,250 Jostens Holding Corp., zero coupon, Step up to 10.25% on 12/01/2008 due 12/01/2013 165,000 103,537 Scotts Company, 6.625% due 11/15/2013 15,000 15,413 Target Corp., 6.35% due 01/15/2011 500,000 557,937 ----------- 926,699 SANITARY SERVICES - 0.12% Allied Waste North America, Inc., 7.875% due 04/15/2013 100,000 108,250 8.50% due 12/01/2008 510,000 567,375 ----------- 675,625 SEMICONDUCTORS - 0.13% Amkor Technology, Inc., 9.25% due 02/15/2008 240,000 272,400 10.50% due 05/01/2009 (a) 105,000 112,087 SCG Holding Corp., Series B, 12.00% due 08/01/2009 (a) 278,000 298,850 ----------- 683,337 STEEL - 0.13% AK Steel Corp., 7.875% due 02/15/2009 (a) 320,000 280,800 Oregon Steel Mills, Inc., 10.00% due 07/15/2009 (a) 50,000 43,875 Steel Dynamics, Inc., 9.50% due 03/15/2009 45,000 49,950 9.50% due 03/15/2009 (a) 35,000 38,850 United States Steel LLC, 10.75% due 08/01/2008 270,000 315,900 ----------- 729,375 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.85% Avaya, Inc., 11.125% due 04/01/2009 205,000 239,850 Deutsche Telekom International Finance BV, FRN 8.25% due 06/15/2005 500,000 542,377 EchoStar DBS Corp., 9.375% due 02/01/2009 175,000 183,969 France Telecom SA, FRN 9.00% due 03/01/2011 1,050,000 1,261,136 GCI, Inc., 9.75% due 08/01/2007 380,000 391,400 Insight Midwest LP/ Insight Capital, Inc., 9.75% due 10/01/2009 85,000 89,888 10.50% due 11/01/2010 235,000 255,562 Level 3 Communications, Inc., zero coupon, Step up to 12.875% on 03/15/2005 due 03/15/2010 110,000 92,125 Nortel Networks, Ltd., 6.125% due 02/15/2006 110,000 111,375 Panamsat Corp., 8.50% due 02/01/2012 85,000 94,350 Singapore Telecommunications, Ltd., 7.375% due 12/01/2031 800,000 944,365 Telenet Group Hldg Nv, zero coupon, Step up to 11.50% on 12/15/2008 due 06/15/2014 155,000 97,650 Time Warner Telecom, Inc., 10.125% due 02/01/2011 55,000 58,575 United States West Communications, Inc., 6.875% due 09/15/2033 300,000 285,000 ----------- 4,647,622 TELEPHONE - 2.10% Accident Escrow Corp., 10.00% due 08/01/2011 80,000 89,200 Alaska Communications Systems, 9.875% due 08/15/2011 115,000 120,750 Alltel Corp., 7.875% due 07/01/2032 1,300,000 1,583,445 Ameritech Capital Funding Corp., 6.45% due 01/15/2018 1,100,000 1,189,612 AT&T Corp., FRN 7.25% due 11/15/2006 450,000 497,626 FRN 8.75% due 11/15/2031 1,025,000 1,197,777 British Telecommunications PLC, 8.625% due 12/15/2030 1,100,000 1,438,364 CenturyTel, Inc., 7.875% due 08/15/2012 225,000 266,496 Cincinnati Bell, Inc., 8.375% due 01/15/2014 180,000 193,500 Compania De Telecomunicaciones (a), 8.375% due 01/01/2006 1,000,000 1,100,233 GTE California, Inc., Series G, 5.50% due 01/15/2009 1,000,000 1,063,474 GTE Corp., 8.75% due 11/01/2021 1,000,000 1,231,380 Lucent Technologies, Inc., 7.25% due 07/15/2006 (a) 105,000 106,575 Sprint Capital Corp., 6.875% due 11/15/2028 1,500,000 1,463,748 Telecommunications Techniques Company, 9.75% due 05/15/2008+++ 290,000 3,263 ----------- 11,545,443 TIRES & RUBBER - 0.03% Goodyear Tire & Rubber Company, 7.857% due 08/15/2011 (a) 145,000 126,513 8.50% due 03/15/2007 (a) 50,000 49,125 ----------- 175,638 TOBACCO - 0.21% Altria Group, Inc., 7.00% due 11/04/2013 1,070,000 1,141,471 ----------- TOYS, AMUSEMENTS & SPORTING GOODS - 0.02% Bombardier Recreational Products, 8.375% due 12/15/2013 10,000 10,450 Remington Arms, Inc., 10.50% due 02/01/2011 95,000 101,175 ----------- 111,625 TRANSPORTATION - 0.04% K & F Industry, Inc. Series B, 9.25% due 10/15/2007 98,000 101,062 Navistar International Corp., 8.00% due 02/01/2008 60,000 61,650 Series B, 9.375% due 06/01/2006 20,000 22,075
The accompanying notes are an integral part of the financial statements. 219 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- TRANSPORTATION - CONTINUED Westinghouse Air Brake, 6.875% due 07/31/2013 $ 40,000 $ 41,450 ------------ 226,237 TOTAL CORPORATE BONDS (Cost: $254,694,254) $279,121,265 ------------ MUNICIPAL BONDS - 2.18% ARIZONA - 0.20% Phoenix Arizona Civic Improvement Corp., 6.30% due 07/01/2008 1,010,000 1,122,100 ------------ CALIFORNIA - 0.68% Los Angeles County California Pension, 8.62% due 06/30/2006 1,500,000 1,719,255 Series A, 8.49% due 06/30/2004 500,000 517,600 Southern California Public Power Authority Project, Series B, 6.93% due 05/15/2017 1,300,000 1,506,492 ------------ 3,743,347 FLORIDA - 0.22% Miami Beach Florida Redevelopment Agency Tax, 8.95% due 12/01/2022 1,000,000 1,193,420 ------------ ILLINOIS - 0.06% Illinois State Taxable Pension, 4.95% due 06/01/2023 335,000 312,438 ------------ MARYLAND - 0.06% Maryland State Transportation Authority, Ltd., 5.84% due 07/01/2011 300,000 326,346 ------------ MICHIGAN - 0.27% Detroit Michigan Downtown Development Authority, 6.20% due 07/01/2008 1,335,000 1,477,671 ------------ NEW JERSEY - 0.03% Jersey City New Jersey Municipal Utilities Authority, 4.55% due 05/15/2012 150,000 149,066 ------------ PENNSYLVANIA - 0.57% Philidelphia Pennsylvania Authority, Series A, 5.59% due 04/15/2005 2,000,000 2,091,020 Pittsburgh Pennsylvania Urban Redevelopment Authority, 8.55% due 09/01/2004 1,000,000 1,047,270 ------------ 3,138,290 SOUTH CAROLINA - 0.09% South Carolina Public Service Authority, Series B, 6.97% due 01/01/2005 475,000 499,814 ------------ TOTAL MUNICIPAL BONDS (Cost: $11,552,165) $ 11,962,492 ------------ COLLATERALIZED MORTGAGE OBLIGATIONS - - 5.27% Asset Securitization Corp., Series 1997, Class A 1B, 6.66% due 02/14/2043 2,520,887 2,621,065 Banc of America Commercial Mortgage Inc., Class A, 6.186% due 06/11/2035 3,000,000 3,300,371 Chase Commercial Mortgage Securities Corp., Series 1998 1 Class A2, 6.56% due 05/18/2030 3,000,000 3,333,010 Series 1998 2 Class A2, 6.39% due 11/18/2030 2,500,000 2,777,843 Commercial Mortgage Asset Trust, Series 1999-C1, Class A3, FRN 6.640% due 01/17/2032 3,000,000 3,381,678 First Union-Lehman Brothers Commercial Mortgage, Series 97 Class A2, FRN 6.60% due 11/18/2029 429,931 437,687 LB-UBS Commercial Mortgage Trust, Class A, 5.642% due 12/15/2025 2,825,843 3,032,061 6.462% due 03/15/2031 1,500,000 1,674,283 Morgan Stanley Dean Witter Capital I, Class A, 6.39% due 10/15/2035 2,000,000 2,232,687 Class A, 6.54% due 07/15/2030 1,500,000 1,672,305 Class A2, 5.98% due 01/15/2039 300,000 326,288 Series 2001, Class A4, 6.39% due 07/15/2033 840,000 935,777 Nomura Asset Securities Corp., Series 1998 D6 Class A 1B, 6.59% due 03/15/2030 2,850,000 3,189,290 ------------ TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost: $27,083,060) $ 28,914,345 ------------ ASSET BACKED SECURITIES - 1.50% AESOP Funding II LLC, Series 1998-1, Class A, 6.14% due 05/20/2006 600,000 630,026 Series 2003-4, Class A, 2.86% due 08/20/2009 1,740,000 1,686,974 Chase Manhattan Auto Owner Trust, Class A, FRN 4.21% due 01/15/2009 2,000,000 2,069,072 Massachusetts RRB Special Purpose Trust, 6.53% due 06/01/2015 857,804 954,039 MBNA Credit Card Master Note Trust, Series 2001-A1, Class A, 5.75% due 10/15/2008 2,000,000 2,150,964 Onyx Acceptance Auto Trust, Series 2001-B, Class A4, 5.49% due 11/15/2007 457,048 467,821 Peco Energy Transition Trust, Series 2001 A, FRN 6.52% due 12/31/2010 250,000 282,945 ------------ TOTAL ASSET BACKED SECURITIES (Cost: $8,005,214) $ 8,241,841 ------------ SHORT TERM INVESTMENTS - 12.90% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $70,793,540 $ 70,793,540 ------------ REPURCHASE AGREEMENTS - 1.65% UBS Tri-Party Repurchase Agreement, dated 12/31/2003 at 0.84%, to be repurchased at $9,027,421 on 01/02/2004, collateralized by $8,051,000 U.S. Treasury Bonds, 6.125% due 08/15/2029 (valued at $9,321,973, including interest). $ 9,027,000 $ 9,027,000 ------------ TOTAL INVESTMENTS (INVESTMENT QUALITY BOND TRUST) (Cost: $520,377,955) $548,767,538 ============
The accompanying notes are an integral part of the financial statements. 220 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) TOTAL RETURN TRUST
SHARES VALUE ------ ----- PREFERRED STOCK - 0.56% BANKING - 0.56% DG Funding Trust * 981 $ 10,398,600 ----------------- TOTAL PREFERRED STOCK (Cost: $10,336,921) $ 10,398,600 -----------------
PRINCIPAL AMOUNT VALUE ------ ----- U.S. TREASURY OBLIGATIONS - 8.64% U.S. TREASURY BONDS - 0.52% 3.875% due 04/15/2029 (a) *** $ 7,427,838 $ 9,623,692 ----------------- U.S. TREASURY NOTES - 8.12% 1.875% due 07/15/2013 (a) *** 1,712,478 1,700,169 3.00% due 07/15/2012 *** 29,737,811 32,418,853 3.375% due 01/15/2007 - 01/15/2012 (a) *** 11,709,495 12,986,000 3.50% due 01/15/2011 (a) *** 28,914,144 32,492,269 3.875% due 01/15/2009 (a) *** 63,288,093 71,466,117 ----------------- 151,063,408 TOTAL U.S. TREASURY OBLIGATIONS (Cost: $156,879,881) $ 160,687,100 ----------------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 14.12% FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.77% FRN 4.736% due 01/01/2029 *** 1,640,923 1,697,674 5.00% due 09/15/2016 - 12/01/2018 *** 6,813,450 6,957,626 5.50% due 03/15/2015 *** 296,718 301,176 FRN 5.625% due 07/15/2028 *** 786,064 789,848 6.00% due 03/01/2016 - 04/01/2033 *** 9,856,226 10,141,081 FRN 6.50% due 08/01/2032 *** 2,975,961 3,117,127 FRN 7.50% due 08/15/2030 *** 3,283,121 3,415,546 7.50% due 12/20/2029 *** 6,089,105 6,468,737 ----------------- 32,888,815 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 11.52 % FRN 3.138% due 10/01/2040 *** 2,117,099 2,148,905 FRN 4.031% due 07/01/2009 *** 1,757,398 1,786,490 FRN 4.299% due 05/01/2036 *** 11,259,419 11,447,362 5.00% due 11/01/2017 - 11/01/2018 *** 41,141,610 42,014,035 5.50% due 11/01/2016 - 05/01/2018 *** 44,664,827 46,335,803 6.00% TBA ** 7,000,000 7,177,818 6.00% due 03/01/2013 - 12/01/2033 *** 93,311,660 96,454,461 FRN 6.00% due 11/01/2016 - 06/01/2017 *** 2,156,571 2,264,664 6.50% due 05/01/2032 - 12/25/2042 *** 4,456,615 4,698,467 ----------------- 214,328,005 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.83% FRN 3.50% due 01/20/2032 - 02/20/2032 *** 7,427,827 7,362,361 FRN 4.375% due 02/20/2024 *** 692,304 703,971 FRN 4.50% due 05/20/2030 *** 1,510,877 1,514,493 FRN 5.00% due 10/20/2029 - 11/20/2029 *** 3,663,487 3,743,038 FRN 5.375% due 05/20/2023 *** 1,839,549 1,880,477 FRN 5.75% due 09/20/2021 *** 259,029 264,696 ----------------- 15,469,036 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $260,232,956) $ 262,685,856 ----------------- FOREIGN GOVERNMENT OBLIGATIONS - 2.91% FEDERAL REPUBLIC OF BRAZIL - 0.96% FRN 2.00% due 04/15/2006 (a) *** 2,096,000 2,074,411 Series 15 yrs, FRN 2.0625% due 04/15/2009 537,076 509,551 Series RG, FRN 2.0625% due 04/15/2009 *** 129,416 122,557 FRN 8.00% due 04/15/2014 (a) *** 2,647,532 2,606,495 11.00% due 01/11/2012 - 08/17/2040 *** 10,320,000 11,659,200 11.50% due 03/12/2008 *** 800,000 928,000 ----------------- 17,900,214 GOVERNMENT OF MEXICO - 1.01% 6.375% due 01/16/2013 *** 2,420,000 2,510,750 8.00% due 09/24/2022 *** 1,800,000 1,969,200 8.30% due 08/15/2031 *** 12,300,000 13,868,250 9.875% due 02/01/2010 *** 200,000 252,830 11.375% due 09/15/2016 *** 100,000 141,750 ----------------- 18,742,780 REPUBLIC OF PANAMA - 0.25% 8.25% due 04/22/2008 *** 700,000 770,000 8.875% due 09/30/2027 *** 2,200,000 2,310,000 9.375% due 07/23/2012 *** 1,400,000 1,583,050 ----------------- 4,663,050 REPUBLIC OF PERU - 0.64% 9.125% due 02/21/2012 (a)*** 10,600,000 11,819,000 ----------------- REPUBLIC OF POLAND - 0.02% FRN 4.50% due 10/27/2024 *** 500,000 461,250 ----------------- REPUBLIC OF SOUTH AFRICA - 0.03% 9.125% due 05/19/2009 *** 500,000 601,250 ----------------- TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost: $47,169,247) $ 54,187,544 ----------------- CORPORATE BONDS - 7.03% AIR TRAVEL - 0.02% American Airlines, Series 2001-2, Class A-1, 6.978% due 04/01/2011 *** 361,938 365,828 ----------------- AUTOMOBILES - 0.72% DaimlerChrysler North America Holding, 4.75% due 01/15/2008 (a) *** 11,500,000 11,766,075 General Motors Corp., 7.125% due 07/15/2013 (a) *** 1,300,000 1,425,671 8.375% due 07/05/2033 *** 100,000 147,717 ----------------- 13,339,463 BANKING - 0.32% Royal Bank of Scotland Group PLC, FRN 7.648% due 08/31/2049 (a) *** 5,000,000 5,966,035 ----------------- DOMESTIC OIL - 0.20% Kerr Mcgee Corp., FRN 1.85% due 06/28/2004 *** $ 450,000 $ 449,224 Pemex Project Funding Master Trust, FRN 2.779% due 01/07/2005 *** 2,100,000 2,110,137 7.375% due 12/15/2014 *** 600,000 640,500 8.625% due 02/01/2022 *** 500,000 553,750 ----------------- 3,753,611
The accompanying notes are an integral part of the financial statements. 221 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- ELECTRIC UTILITIES - 0.87% AEP Texas Central Company, Series A, FRN 2.38% due 02/15/2005 *** $ 900,000 $ 900,893 Gulf States Utilities Company, 8.25% due 04/01/2004 *** 6,850,000 6,957,572 LG&E Capital Corp., 6.205% due 05/01/2004 6,000,000 6,072,828 Pacific Gas & Electric Company, FRN 7.958% due 10/31/2049 300,000 301,875 TXU Energy Company LLC, 7.00% due 03/15/2013 *** 1,700,000 1,880,193 ----------------- 16,113,361 FINANCIAL SERVICES - 1.57% Atlas Reinsurance PLC, Series A, FRN 4.877% due 01/07/2005 1,250,000 1,258,288 CIT Group, Inc., 5.50% due 02/15/2004 *** 1,460,000 1,466,840 Gemstone Investors, Ltd., 7.71% due 10/31/2004 *** 1,300,000 1,313,000 General Motors Acceptance Corp., MTN, FRN 1.520% due 07/21/2004 *** 4,700,000 4,700,649 FRN 1.529% due 04/05/2004 *** 2,000,000 2,000,118 MTN, FRN 1.969% due 05/04/2004 *** 3,500,000 3,505,855 FRN 1.981% due 05/10/2004 *** 1,600,000 1,602,254 MTN, FRN 1.99% due 05/17/2004 *** 3,000,000 3,004,563 FRN 2.049% due 01/20/2004 *** 2,700,000 2,700,678 8.00% due 11/01/2031 *** 1,000,000 1,122,967 National Rural Utilities Cooperative, MTN, FRN 2.160% due 04/26/2004 *** 1,000,000 1,002,967 Phoenix Quake Wind, Ltd., FRN 3.600% due 07/03/2008 800,000 808,272 Phoenix Quake, Ltd., FRN 3.466% due 07/03/2008 800,000 809,944 Premium Asset Trust, Series 2000-10, FRN 1.605% due 11/27/2004 500,000 501,131 Qwest Capital Funding, Inc., 7.25% due 02/15/2011 (a) *** 113,000 111,305 Trinom, Ltd., Series A2, FRN 5.06% due 12/18/2004 1,000,000 1,006,210 UFJ Finance Aruba AEC, 6.75% due 07/15/2013 *** 1,800,000 1,919,698 Vita Capital, Ltd. 2003-1, FRN 2.56% due 01/01/2007 400,000 400,800 ----------------- 29,235,539 GAS & PIPELINE UTILITIES - 0.77% El Paso Corp., MTN, 7.75% due 01/15/2032 (a) *** 16,500,000 14,066,250 Williams Companies, Inc., 7.625% due 07/15/2019 *** 200,000 209,250 ----------------- 14,275,500 INSURANCE - 0.40% Residential Reinsurance Ltd., Series 2003, FRN 6.23% due 12/08/2007 7,300,000 7,461,330 ----------------- SANITARY SERVICES - 0.22% Waste Management, Inc., 6.50% due 05/15/2004 *** 4,000,000 4,067,292 ----------------- TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.59% Deutsche Telekom International Finance BV, FRN 8.75% due 06/15/2030 *** 3,300,000 4,215,512 Qwest Corp., 7.125% due 11/15/2043 *** 2,111,000 2,047,670 7.25% due 09/15/2025 *** 2,700,000 2,700,000 US West Communications, Inc., 7.20% due 11/01/2004 (a) *** 2,000,000 2,045,000 ----------------- 11,008,182 TELEPHONE - 1.14% AT&T Corp., FRN 7.80% due 11/15/2011 *** 3,900,000 4,488,822 France Telecom SA, FRN 10.00% due 03/01/2031 (a) *** 900,000 1,195,807 Sprint Capital Corp., 6.00% due 01/15/2007 (a) *** 100,000 106,805 6.125% due 11/15/2008 *** 1,600,000 1,705,402 6.90% due 05/01/2019 *** 1,100,000 1,123,693 7.625% due 01/30/2011 *** 10,900,000 12,218,213 8.375% due 03/15/2012 (a) *** 300,000 350,340 ----------------- 21,189,082 TOBACCO - 0.21% Philip Morris Companies, Inc., 7.75% due 01/15/2027 *** 3,600,000 3,884,285 ----------------- TOTAL CORPORATE BONDS (Cost: $127,282,937) $ 130,659,508 ----------------- MUNICIPAL BONDS - 2.84% CALIFORNIA - 0.46% California State Revenue Anticipartion Warrants, Series A, 2.00% due 06/16/2004 *** 1,100,000 1,102,233 Golden State Tobacco Securitization Corp. California, Series 2003-A-1, 6.25% due 06/01/2033 *** 3,100,000 2,963,600 Golden State Tobacco Securitization Corp., California, Series 2003-A-1, 6.75% due 06/01/2039 *** 3,635,000 3,581,965 Orange County California Sanitation District, Certificate Participation, 5.00% due 02/01/2033 *** 900,000 920,601 ----------------- 8,568,399 MICHIGAN - 0.06% Michigan State Building Authority Revenue, Series I, 5.25% due 10/15/2012 *** 900,000 1,026,198 ----------------- MINNESOTA - 0.11% Northstar Guarantee, Inc., Division B, Minnesota Student Loan Revenue, Auction Rate Certificate, Series A-3, 1.21% due 04/01/2042 *** 2,000,000 2,000,000 ----------------- MISSOURI - 0.18% Missouri Higher Education Loan Authority, Student Loan Revenue, Auction Rate Certificates Taxable, Series BB, 1.21% due 02/15/2028 *** 3,400,000 3,400,000 ----------------- NEW YORK - 0.53% Metropolitan Transportation Authority New York, Series A, 5.00% due 11/15/2031 *** 1,400,000 1,432,844
The accompanying notes are an integral part of the financial statements. 222 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- NEW YORK - CONTINUED New York City Municipal Water Finance Authority, Series E, 5.00% due 06/15/2034 *** $ 7,300,000 $ 7,445,927 New York State Environmental Facilities Corp., Residuals-Series 658, FRN 8.97% due 06/15/2023 *** 850,000 945,030 ----------------- 9,823,801 NORTH CAROLINA - 0.13% North Carolina State Educations Assistance Authority Revenue, FRN 1.28% due 06/01/2009 *** 715,504 715,776 North Carolina State Residuals- Series 653, FRN 8.74% due 03/01/2018 *** 1,400,000 1,797,768 ----------------- 2,513,544 TEXAS - 0.21% Brazos Texas Higher Education Authority, Inc. Student Loan Revenue, Taxable Senior Series A-13, 1.23% due 12/01/2039 *** 1,300,000 1,300,000 Midland Texas Independent School District, 5.00% due 02/15/2028 *** 2,300,000 2,357,270 University of Texas University Revenues, Series B, 5.00% due 08/15/2033 *** 300,000 306,039 ----------------- 3,963,309 WASHINGTON - 0.40% Energy Northwest Washington Electric Revenue, Series A, 5.50% due 07/01/2015 *** 1,100,000 1,248,302 King County Washington Sewer Revenue, Series A, 5.00% due 01/01/2035 *** 6,000,000 6,133,440 ----------------- 7,381,742 WISCONSIN - 0.76% Badger Tobacco Asset Securitization Corp., 6.00% due 06/01/2017 *** 2,900,000 2,763,091 Wisconsin State General Fund Annual Appropriation Revenue, Auction Rate Certificaticates Series B-5, 1.20% due 05/01/2032 *** 4,800,000 4,800,000 Wisconsin State Clean Water Revenue, Residual-Series 645, FRN 8.93% due 06/01/2023 *** 5,910,000 6,655,192 ----------------- 14,218,283 TOTAL MUNICIPAL BONDS (Cost: $51,136,008) $ 52,895,276 ----------------- COLLATERALIZED MORTGAGE OBLIGATIONS - 4.05% ABN AMRO Mortgage Corp., Series 1999-4, Class IA4, 6.50% due 06/25/2029 *** 1,455,829 1,463,892 Aurora Loan Services, Series 2000-2, Class 2A1, FRN 1.735% due 05/25/2030 *** 245,819 245,673 Bank of America Mortgage Securities, Series 2002-K, Class 2A1, FRN 5.768% due 10/20/2032 *** 1,646,884 1,703,777 Bear Stearns Arm Trust, Series 2002-11, Class 1A2, FRN 5.368% due 02/25/2033 *** 6,346,823 6,438,119 Bear Stearns Arm Trust, Series 2002-8, Class 3A, FRN 6.132% due 08/25/2032 *** 174,822 176,015 Series 2002-9, Class 2A, FRN 5.372% due 10/25/2032 *** 472,688 480,197 Series 2003-8, Class 2A1, 4.948% due 01/25/2034 *** 9,190,447 9,352,646 Cendant Mortgage Corp., Series 1999-A, Class A2, FRN 1.685% due 08/25/2030 *** 177,460 177,555 Countrywide Home Loans, Series 2002-7, Class 1A1, FRN 5.460% due 05/19/2032 *** 1,652,827 1,700,545 First Nationwide Trust, Series 2001- 3, Class 1A1, 6.75% due 08/21/2031 *** 330,775 340,412 GMAC Commercial Mortgage Security, Inc., Series 99 C2, Class A, FRN 6.57% due 09/15/2033 *** 2,980,197 3,195,040 GSR Mortgage Loan Trust, Series 2002-5, Class A2, FRN 5.358% due 01/25/2032 *** 1,566,229 1,569,379 Indymac Arm Trust, Series 2001-H2, Class A2, FRN 6.527% due 01/25/2032 *** 229,664 237,296 Residential Funding Mortgage Securities I, Series 2002-SA2, Class A1, FRN 5.64% due 09/25/2032 *** 774,960 794,532 Small Business Administration, Series 2000-P10B, Class 1, FRN 7.45% due 08/01/2010 *** 691,289 751,193 Series 2001-P10B, Class 1, FRN 6.34% due 08/01/2011 *** 5,395,994 5,665,131 Series 2003-20I, Class 1, 5.13% due 09/01/2023 *** 400,000 404,692 Structured Asset Securities Corp., Series 2001-15A, Class 2A1, 6.50% due 10/25/2031 *** 305,504 317,194 Series 2001-21A, Class 1A1, FRN 6.25% due 01/25/2032 *** 875,236 904,181 Series 2002-1A, Class 4A, FRN 6.14% due 02/25/2032 *** 306,473 315,758 Washington Mutual Mortgage Securities Corp., Series 2002-AR9, Class 1A, 2.702% due 08/25/2042 *** 19,487,834 19,561,593 Series 2002-S5, Class 1A1, FRN 5.207% due 10/25/2032 *** 2,408,813 2,466,353 Series 2003-AR1, Class 2A, FRN 5.459% due 02/25/2033 *** 15,725,178 16,016,292 Wells Fargo Mortgage Backed Securities Trust, Series 2001-34, Class 2A, FRN 6.03% due 01/25/2032 *** 504,447 511,141 Series 2002-E, Class 2A1, FRN 5.108% due 09/25/2032 *** 501,491 509,915 ----------------- TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost: $74,598,081) $ 75,298,521 -----------------
The accompanying notes are an integral part of the financial statements. 223 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- ASSET BACKED SECURITIES - 1.30% Ameriquest Mortgage Securities, Inc., Series 2000-1, Class A, FRN 1.63% due 05/15/2030 *** $ 76,334 $ 76,404 Bayview Financial Acquisition Trust, Series 2001-AA, Class A, FRN 1.435% due 04/25/2031 *** 436,374 436,752 Series 2001-BA, Class A, FRN 1.315% due 07/25/2031 *** 710,170 708,472 Brazos Student Finance Corp., Series 1998-A, Class A2, FRN 2.08% due 06/01/2023 *** 2,618,367 2,643,645 Credit Suisse First Boston Mortgage Securities Corp., Series 2002-P3A, Class A1, FRN 2.202% due 08/25/2033 6,825,752 6,825,752 EMC Mortgage Loan Trust, Series 2001-A Class A, FRN 1.405% due 05/25/2040 7,156,721 7,154,364 FHA 220 NP Reilly 60, 7.43% due 12/01/2023 *** 4,995,289 5,068,754 Green Tree Financial Corp., Series 1999-5, Class A3, FRN 6.97% due 04/01/2031 *** 788,445 793,724 Irwin Low Balance Home Loan Trust, Series 2000-LB1, Class A, FRN 1.41% due 06/25/2021 *** 450,689 450,927 ----------------- TOTAL ASSET BACKED SECURITIES (Cost: $24,072,616) $ 24,158,794 ----------------- SHORT TERM INVESTMENTS - 55.73% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 334,433,933 $ 334,433,933 Citibank New York N.A., 1.085% due 03/18/2004 *** 23,600,000 23,600,000 1.095% due 02/19/2004 *** 6,300,000 6,300,000 European Investment Bank 1.06% due 02/05/2004 *** 4,600,000 4,595,259 Royal Bank of Scotland PLC 1.075% due 02/03/2004 *** 20,000,000 19,980,292 Federal Home Loan Bank Discount Note, 1.04% due 03/12/2004 *** 1,600,000 1,596,718 1.05% due 01/14/2004 *** 146,000,000 145,959,120 1.075% due 03/12/2004 *** 1,500,000 1,496,820 Federal Home Loan Mortgage Discount Notes, Series RB, 1.07% due 01/29/2004 *** 36,400,000 36,372,991 1.08% due 01/22/2004 *** 42,400,000 42,376,680 Federal National Mortgage Association Discount Notes, 1.06% due 03/10/2004 (a) *** 14,600,000 14,570,337 1.078% due 02/25/2004 *** 50,000,000 49,917,691 1.08% due 02/19/2004 - 03/17/2004 (a) *** 71,500,000 71,377,156 Danske Corp., Series A, 1.08% due 02/13/2004 *** 4,600,000 4,594,066 1.09% due 03/03/2004 *** 25,400,000 25,352,318 General Electric Capital Corp., 1.09% due 04/12/2004 *** 10,300,000 10,268,190 1.12% due 03/04/2004 *** 13,100,000 13,074,324 HBOS Treasury Services PLC, 1.10% due 02/25/2004 *** 20,000,000 19,966,389 1.105% due 01/23/2004 *** 900,000 899,392 Westpac Trust Securities NZ, Ltd., 1.075% due 02/05/2004 *** 2,000,000 1,997,910 United States Treasury Bills, 0.83% due 03/04/2004 - 03/11/2004 ***, **** 3,770,000 3,763,986 0.84% due 03/18/2004 ***, **** 9,040,000 9,023,529 0.87% due 04/29/2004 (a) *** 47,700,000 47,556,471 0.88% due 06/03/2004 (a) *** 73,900,000 73,602,553 0.89% due 06/17/2004 (a) *** 74,200,000 73,869,587 ----------------- $ 1,036,545,712 REPURCHASE AGREEMENTS - 2.82% *** Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $52,501,000 on 01/02/2004, collateralized by $6,450,000 U.S. Treasury Bonds, 6.50% due 11/15/2026 (valued at $7,651,313, including interest), $21,890,000 U.S. Treasury Bonds, 6.25% due 08/15/2023 (valued at $25,501,850, including interest), and $18,610,000 U.S. Treasury Notes, 7.50% due 11/15/2016 (valued at $5,095,238, including interest). $ 52,501,000 $ 52,501,000 ----------------- TOTAL INVESTMENTS (TOTAL RETURN TRUST) (Cost: $1,840,755,359) $ 1,860,017,911 ================= REAL RETURN BOND TRUST U.S. TREASURY OBLIGATIONS - 49.41% U.S. TREASURY BONDS - 13.05% 3.375% due 04/15/2032 ** 14,563,500 17,997,864 3.625% due 04/15/2028 ** 5,708,100 7,072,690 3.875% due 04/15/2029 ** 39,424,589 51,078,680 ----------------- 76,149,234 U.S. TREASURY NOTES - 36.36% 3.00% due 07/15/2012 ** 12,323,400 13,434,429 3.375% due 01/15/2007 - 01/15/2012 ** 59,385,740 65,036,854 3.50% due 01/15/2011 ** 62,593,100 70,338,996 3.625% due 01/15/2008 ** 37,719,990 41,715,970 3.875% due 01/15/2009 ** 14,637,740 16,529,214 4.25% due 01/15/2010 ** 4,390,440 5,104,043 ----------------- 212,159,506 TOTAL U.S. TREASURY OBLIGATIONS (Cost: $284,982,889) $ 288,308,740 -----------------
The accompanying notes are an integral part of the financial statements. 224 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- CORPORATE BONDS - 1.57% ELECTRIC UTILITIES - 0.21% Entergy Gulf States, FRN 2.070% due 06/18/2007 *** $ 1,200,000 $ 1,202,703 ----------------- FINANCIAL SERVICES - 1.14% Phoenix Quake Wind, Ltd., FRN 3.600% due 07/03/2008 1,500,000 1,515,510 Pylon Ltd., Class A Catastrophe Bond, 3.65% due 12/29/2008 600,000 755,970 Pylon Ltd., Class B Catastrophe Bond, 6.05% due 12/29/2008 1,000,000 1,259,951 Verizon Wireless Capital LLC, FRN 1.240% due 05/23/2005 *** 2,500,000 2,497,000 Vita Capital, Ltd. 2003-1, FRN 2.56% due 01/01/2007 600,000 601,200 ----------------- 6,629,631 INSURANCE - 0.05% Residential Reinsurance Ltd., Series 2003, FRN 6.12% due 12/08/2007 300,000 306,630 ----------------- METAL & METAL PRODUCTS - 0.17% Alcan Aluminum Corp., FRN 1.430% due 12/08/2004 *** 1,000,000 997,384 ----------------- TOTAL CORPORATE BONDS (Cost: $9,039,813) $ 9,136,348 ----------------- MUNICIPAL BONDS - 1.64% ARIZONA - 0.20% Arizona Educational Loan Marketing Corp., Series E-2, 1.15% due 12/01/2037 *** 1,200,000 1,200,000 MISSOURI - 0.86% Missouri High Education Student Loan, FRN 1.190% due 06/01/2031 *** 5,000,000 5,000,000 ----------------- PENNSYLVANIA - 0.12% Pennsylvania State High Education, Series J-3, 1.19% due 12/01/2040 *** 700,000 700,000 ----------------- TEXAS - 0.46% Brazos Texas Higher Education Authority Inc., Series A-12, 1.24% due 12/01/2039 *** 2,000,000 2,000,000 Panhandle Plains Texas High Education Loan, Series A-3, FRN 1.180% due 04/01/2031 *** 700,000 700,000 ----------------- 2,700,000 TOTAL MUNICIPAL BONDS (Cost: $9,599,964) $ 9,600,000 ----------------- COLLATERALIZED MORTGAGE OBLIGATIONS - 1.75% Bear Stearns Adjustable Rate Mortgage Trust, Series 2003-8, Class 1A1, FRN 4.391% due 01/25/2034 *** 9,997,220 10,184,273 ----------------- TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost: $10,147,178) $ 10,184,273 ----------------- ASSET BACKED SECURITIES - 0.99% Asset Backed Securities Corp Home Equity, Series 2003-HE1, Class A2, FRN 1.662% due 01/15/2033 *** 3,389,003 3,399,744 Federated Student Finance Corp., Series 2002-A, Class A1, 1.13% due 06/01/2038 *** 600,000 599,672 Redwood Capital III Ltd., Series 2003, Class NOTE, FRN due 01/01/2006 900,000 900,000 Redwood Capital IV Ltd, Series 2003, Class NOTE, FRN due 01/01/2006 900,000 900,000 ----------------- 5,799,416 TOTAL ASSET BACKED SECURITIES (Cost: $5,793,769) $ 5,799,416 ----------------- SHORT TERM INVESTMENTS - 42.45% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 18,972,000 $ 18,972,000 ANZ (Delaware) Inc. 1.08% due 02/26/2004 *** 7,000,000 6,988,240 Bank Of America NA 1.10% due 03/15/2004 *** 4,900,000 4,900,000 Citibank NA, 1.085% due 03/18/2004 *** 300,000 300,000 1.09% due 01/30/2004 - 02/19/2004 *** 4,900,000 4,900,000 Federal Home Loan Bank Discount Note, 0.75% due 01/02/2004 *** 48,000,000 47,999,000 1.04% due 03/12/2004 *** 1,200,000 1,197,539 Federal Home Loan Mortgage Discount Notes, Series RB, 1.06% due 01/15/2004 *** 2,800,000 2,798,998 1.07% due 01/29/2004 *** 17,000,000 16,987,386 1.08% due 01/22/2004 (a) *** 18,600,000 18,589,770 Federal National Mortgage Association Discount Notes, zero coupon due 02/04/2004 *** 20,000,000 19,981,111 1.05% due 03/24/2004 *** 25,700,000 25,641,456 1.07% due 02/11/2004 *** 9,700,000 9,689,223 1.075% due 04/05/2004 *** 6,400,000 6,381,844 BP Capital Markets PLC Yrs 1&2, 1.04% due 03/23/2004 *** 8,000,000 7,981,049 CBA (Delaware) Finance, Inc. 1.08% due 03/09/2004 *** 4,000,000 3,991,840 Danske Corp., Series A 1.08% due 03/03/2004 *** 6,300,000 6,288,282 General Electric Capital Corp., 1.09% due 04/12/2004 *** 6,100,000 6,081,161
The accompanying notes are an integral part of the financial statements. 225 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - CONTINUED HBOS Treasury Services PLC 1.11% due 04/07/2004 *** $ 7,000,000 $ 6,979,064 KFW International Finance 4/2, Inc., 1.07% due 02/24/2004 *** 7,100,000 7,088,702 National Australia Funding Delaware Inc., 1.06% due 01/15/2004 *** 2,500,000 2,498,969 1.075% due 02/10/2004 *** 5,000,000 4,994,028 Shell Finance (UK) PLC 1.06% due 03/18/2004 *** 8,000,000 7,981,863 Westpac Capital Corp. 1.07% due 03/18/2004 *** 8,000,000 7,981,691 United States Treasury Bills, 0.83% due 03/11/2004 **** 500,000 499,185 0.84% due 03/18/2004 **** 5,000 4,991 ----------------- $ 247,697,392 REPURCHASE AGREEMENTS - 2.19% *** Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $12,785,284 on 01/02/2004, collateralized by $12,250,000 U.S. Treasury Notes, 4.625% due 05/15/2006 (valued at $13,045,111, including interest). $ 12,785,000 $ 12,785,000 -----------------
PUT OPTIONS - 0.00%
NUMBER OF EXPIRATION MONTH/ CONTRACTS STRIKE PRICE VALUE - --------- ------------ ----- 23,000,000 U.S. Treasury Inflation February 2004/ Protected $100.00 $ 23 20,000,000 U.S. Treasury Inflation February 2004/ Protected $ 90.00 20 ------------- TOTAL OPTIONS (Cost: $6,719) $ 43 ------------- TOTAL INVESTMENTS (REAL RETURN BOND TRUST) (Cost: $580,052,724) $ 583,511,212 =============
U.S. GOVERNMENT SECURITIES TRUST
PRINCIPAL AMOUNT VALUE ------ ----- U.S. TREASURY OBLIGATIONS - 5.94% U.S. TREASURY BONDS - 0.05% 6.625% due 02/15/2027 **** $ 500,000 $ 597,207 ----------------- U.S. TREASURY NOTES - 5.89% 3.25% due 08/15/2007 *** 6,000,000 6,120,234 3.375% due 11/15/2008 *** 19,600,000 19,755,428 4.25% due 08/15/2013 *** 10,000,000 10,012,500 4.375% due 05/15/2007 *** **** 9,500,000 10,059,977 5.875% due 11/15/2004 *** 16,000,000 16,641,248 6.50% due 02/15/2010 *** 500,000 581,016 6.75% due 05/15/2005 *** 10,500,000 11,256,325 ----------------- 74,426,728 TOTAL U.S. TREASURY OBLIGATIONS (Cost: $73,672,164) $ 75,023,935 ----------------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 49.61% FEDERAL HOME LOAN BANK - 0.73% 5.80% due 09/02/2008 *** 8,350,000 9,195,321 ----------------- FEDERAL HOME LOAN MORTGAGE CORPORATION - 12.97% 4.50% due 04/15/2032 *** 10,342,637 10,217,299 5.00% TBA ** 50,000,000 49,343,750 5.50% TBA ** 5,000,000 5,059,375 5.50% due 01/15/2023 *** 31,000,000 3,424,998 6.00% TBA ** 56,800,000 58,681,500 6.00% due 10/01/2010 - 12/01/2028 *** 5,061,075 5,243,853 6.50% TBA ** 15,000,000 15,707,820 6.50% due 07/01/2006 - 12/01/2010 559,818 594,733 7.00% due 12/01/2004 - 06/01/2032 10,415,856 11,053,504 7.50% due 05/01/2007 230,904 245,102 8.00% due 09/01/2031 *** 3,533,648 3,809,856 8.25% due 07/01/2006 8,873 9,209 9.00% due 10/01/2017 122,523 132,937 9.50% due 08/01/2020 246,936 268,884 10.00% due 05/01/2005 3,924 4,008 11.75% due 10/01/2009 - 12/01/2013 35,233 39,592 12.00% due 07/01/2020 94,486 106,967 ----------------- 163,943,387 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 35.49% 5.00% TBA ** 20,000,000 19,787,500 5.50% TBA ** 72,000,000 73,315,606 5.50% due 04/01/2018 - 05/01/2018 *** 13,999,791 14,524,283 6.00% TBA ** 138,000,000 142,914,444 6.50% TBA ** 79,000,000 82,604,375 6.50% due 10/01/2005 - 06/01/2029 3,486,053 3,653,570 FRN 6.527% due 05/25/2030 *** 9,500,000 10,343,915 7.00% TBA ** 76,000,000 80,465,000 7.00% due 07/01/2022 - 01/01/2030 3,787,051 4,015,615 REMIC FRN 7.2456% due 12/28/2028 925,326 1,028,427 FRN 7.376% due 01/17/2013 *** 1,539,250 1,631,349 7.50% due 09/01/2029 - 02/01/2031 2,029,335 2,168,793 8.00% TBA ** 6,000,000 6,470,628 8.00% due 10/01/2024 - 02/01/2031 707,118 764,708 8.25% due 09/01/2008 27,092 29,031 8.50% due 02/01/2009 - 08/01/2019 2,055,945 2,256,780 8.75% due 08/01/2009 - 10/01/2011 333,992 361,249 9.00% due 05/01/2021 93,840 104,733 10.00% due 04/01/2016 590 659 11.50% due 09/15/2013 - 09/01/2019 269,564 306,711 11.75% due 12/01/2015 50,642 57,868 12.00% due 01/01/2013 - 04/01/2016 791,088 905,154 12.50% due 01/01/2013 - 09/01/2015 474,225 542,886 13.50% due 11/01/2014 169,196 196,312 ----------------- 448,449,596 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.42% 7.50% due 02/15/2007 - 12/15/2027 2,602,031 2,796,760 8.00% due 10/15/2005 1,061 1,105 8.50% due 06/15/2025 *** 1,703,893 1,876,765 FRN 9.00% due 12/20/2019 489,384 543,889 9.50% due 09/15/2020 24,589 27,521 11.00% due 09/15/2015 4,854 5,501 ----------------- 5,251,541 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $618,707,872) $ 626,839,845 -----------------
The accompanying notes are an integral part of the financial statements. 226 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- ASSET BACKED SECURITIES - 1.42% Commodore CDO I Ltd., 1.70% due 02/24/2034 *** $ 6,000,000 $ 5,910,000 Wings 2003 1 Ltd, 1.68% due 11/15/2035 *** 12,353,868 12,106,791 ----------------- TOTAL ASSET BACKED SECURITIES (Cost: $18,049,665) $ 18,016,791 ----------------- SHORT TERM INVESTMENTS - 35.22% DaimlerChrysler AG, 1.35% due 01/14/2004 $ 12,400,000 $ 12,393,955 Federal Farm Credit Bank Discount Notes, zero coupon, due 01/05/2004 - 01/06/2004 40,000,000 39,995,178 Federal Home Loan Bank Consolidated Discount Note, 1.01% due 01/13/2004 *** 150,000,000 149,949,500 Amsterdam Funding Corp., 1.09% due 01/13/2004 *** 37,000,000 36,986,557 Bryant Park Funding LLC, 1.10% due 01/13/2004 23,985,000 23,976,205 Clipper Receivables Discount, 1.08% due 01/14/2004 24,800,000 24,790,328 Four Winds Funding Corp., 1.22% due 01/14/2004 *** 12,400,000 12,394,537 General Motors Acceptance Corp., 1.37% due 01/14/2004 *** 12,400,000 12,393,865 Jupiter Section, 1.09% due 01/13/2004 *** 37,000,000 36,986,557 Market Street Funding Corp., 1.09% due 01/14/2004 *** 25,031,000 25,021,148 Variable Funding Capital Corp., 1.08% due 01/14/2004 *** 24,800,000 24,790,328 Victory Receivable Corp., *** 1.11% due 01/13/2004 3,311,000 3,309,775 United States Treasury Bills, 0.89% due 01/02/2004 42,000,000 41,998,961 ----------------- $ 444,986,894 REPURCHASE AGREEMENTS - 7.81% UBS Tri-Party Repurchase Agreement, dated 12/31/2003 at 0.83%, to be repurchased at $98,645,548 on 01/02/2004, collateralized by $27,294,000 U.S. Treasury Bonds, 8.50% due 02/15/2020 (valued at $38,927,522, including interest) and $50,000,000 U.S. Treasury Bonds, 6.75% due 08/15/2026 (valued at $61,686,500, including interest). *** $ 98,641,000 $ 98,641,000 ----------------- TOTAL INVESTMENTS (U.S. GOVERNMENT SECURITIES TRUST) (Cost: $1,254,057,595) $ 1,263,508,465 =================
MONEY MARKET TRUST
PRINCIPAL AMOUNT VALUE ------ ----- U.S. TREASURY OBLIGATIONS - 12.18% U.S. TREASURY BILLS - 12.18% 0.895% due 04/01/2004 $ 30,000,000 $ 29,932,129 0.90% due 01/02/2004 - 02/19/2004 75,400,000 75,317,214 0.95% due 01/22/2004 4,075,000 4,072,742 0.96% due 03/04/2004 30,000,000 29,949,600 1.005% due 04/29/2004 9,700,000 9,667,776 ----------------- 148,939,461 TOTAL U.S. TREASURY OBLIGATIONS (Cost: $148,939,461) $ 148,939,461 ----------------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 50.14% FEDERAL HOME LOAN BANK - 38.26% 0.98% due 03/17/2004 50,000,000 49,896,556 1.02% due 02/20/2004 41,750,000 41,690,854 1.03% due 01/07/2004 - 03/12/2004 116,100,000 116,012,152 1.04% due 01/09/2004 26,000,000 25,993,991 1.05% due 01/23/2004 - 01/28/2004 72,600,000 72,547,349 1.06% due 01/09/2004 - 01/21/2004 98,500,000 98,458,189 1.07% due 03/03/2004 26,474,000 26,425,214 1.075% due 01/14/2004 37,000,000 36,985,637 ----------------- 468,009,942 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 11.88% 1.02% due 02/02/2004 50,000,000 49,954,667 1.05% due 01/07/2004 - 03/24/2004 80,500,000 80,437,102 1.06% due 02/11/2004 15,000,000 14,981,891 ----------------- 145,373,660 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $613,383,602) $ 613,383,602 ----------------- FOREIGN GOVERNMENT OBLIGATIONS - 6.01% GOVERNMENT OF CANADA - 6.01% 1.02% due 02/11/2004 $ 43,600,000 $ 43,549,351 1.04% due 02/23/2004 30,000,000 29,954,067 ----------------- 73,503,418 TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost: $73,503,418) $ 73,503,418 ----------------- SUPRANATIONAL OBLIGATIONS - 2.21% BANKING - 2.21% International Bank For Reconstruction & Development, 1.02% due 01/15/2004 27,000,000 26,989,290 ----------------- TOTAL SUPRANATIONAL OBLIGATIONS $ 26,989,290 (Cost: $26,989,290) COMMERCIAL PAPER - 29.41% AGRICULTURE - 2.45% Cargill, Inc., 1.04% due 01/27/2004 30,000,000 29,977,467 ----------------- AUTOMOBILES - 3.64% Toyota Motor Credit Corp., 1.05% due 01/23/2004 14,600,000 14,590,632
The accompanying notes are an integral part of the financial statements. 227 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------ ----- AUTOMOBILES - CONTINUED Volkswagen Of America, 1.05% due 01/09/2004 $ 30,000,000 $ 29,993,000 ----------------- 44,583,632 FINANCIAL SERVICES - 17.49% Clipper Receivables Corp., 1.09% due 01/12/2004 $ 30,000,000 $ 29,990,008 1.10% due 01/14/2004 15,000,000 14,994,042 Galleon Capital Corp., 1.09% due 01/21/2004 20,000,000 19,987,889 1.10% due 01/21/2004 20,000,000 19,987,777 General Electric Capital Corp., 1.06% due 01/28/2004 35,000,000 34,972,175 Royal Bank of Scotland PLC, 1.06% due 01/14/2004 30,000,000 29,988,517 State Street Corp., 1.05% due 01/21/2004 24,000,000 23,986,000 UBS Finance, Inc., 1.055% due 01/09/2004 40,000,000 39,990,622 ----------------- 213,897,030 PHARMACEUTICALS - 2.07% Pfizer Inc., Discount Commercial Paper, 1.02% due 01/20/2004 25,300,000 25,286,380 ----------------- STEEL - 3.76% Unilever Capital Corporation Discount Commercial Pennsylvania, 0.97% due 01/05/2004 46,010,000 46,005,041 ----------------- TOTAL COMMERCIAL PAPER (Cost: $359,749,550) $ 359,749,550 ----------------- REPURCHASE AGREEMENTS - 0.05% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at $660,026 on 01/02/2004, collateralized by $475,000 U.S. Treasury Bonds, 8.50% due 2/15/2020 (valued at $678,359, including interest). $ 660,000 $ 660,000 ----------------- TOTAL INVESTMENTS (MONEY MARKET TRUST) (Cost: $1,223,225,321) $ 1,223,225,321 =================
SMALL CAP INDEX TRUST
SHARES VALUE ------ ----- COMMON STOCK - 76.07% ADVERTISING - 0.17% aQuantive, Inc. * 7,593 $ 77,829 FindWhat.com * (a) 2,371 44,456 Grey Global Group, Inc. 162 110,654 ValueClick, Inc. * 12,465 113,182 ----------------- 346,121 AEROSPACE - 0.70% AAR Corp. * 5,989 89,536 Aviall Inc. * 5,789 89,787 Curtiss Wright Corp. 2,746 123,597 DRS Technologies, Inc. * 4,242 117,843 EDO Corp. * 2,844 70,105 Esterline Technologies Corp. * 3,650 97,345 GenCorp, Inc. 6,015 64,782 Heico Corp. * (a) 2,793 50,833 Herley Industries, Inc. * 2,137 44,236 Integral Systems, Inc. * 2,292 49,324 Moog, Inc., Class A * 2,629 129,873 Mtc Technologies, Inc. * 1,196 38,535 Orbital Sciences Corp., Class A * (a) 8,387 100,812 Sequa Corp., Class A * 727 35,623 Teledyne Technologies, Inc. * 5,830 109,895 Triumph Group, Inc. * 2,583 94,021 United Industrial Corp. 2,228 40,215 Woodward Governor Company 1,570 89,223 ----------------- 1,435,585 AGRICULTURE - 0.11% Delta & Pine Land Company 6,685 169,799 Tejon Ranch Company * 1,339 54,912 ----------------- 224,711 AIR FREIGHT - 0.04% ExpressJet Holdings, Inc. * 5,325 79,875 ----------------- AIR TRAVEL - 0.53% Airtran Holdings, Inc. * (a) 13,482 160,436 Alaska Air Group, Inc. * 4,179 114,045 America West Holding Corp., Class B * (a) 5,476 67,902 Atlantic Coast Airlines Holdings, Inc. * 7,697 76,200 Continental Airlines, Inc., Class B * (a) 11,810 192,149 Frontier Airlines, Inc. * 6,385 91,050 Mesa Air Group, Inc. * (a) 5,100 63,852 Northwest Airlines Corp., Class A * (a) 11,156 140,789 SkyWest, Inc. * 10,292 186,491 ----------------- 1,092,914 ALUMINUM - 0.02% Century Aluminum Company 2,447 46,517 ----------------- APPAREL & TEXTILES - 0.98% Angelica Corp. 2,258 49,676 Brown Shoe, Inc. * 3,206 121,604 Cherokee Inc. 1,620 36,839 G & K Services, Class A * 3,096 113,778 Goodys Family Clothing, Inc. 3,926 36,747 Interface, Inc., Class A * 9,587 53,016 K-Swiss, Inc., Class A 4,356 104,805 Kellwood Company 4,569 187,329 Maxwell Shoe, Inc. * 3,018 51,216 Movado Group, Inc. 1,614 45,563 Oakley, Inc. (a) 4,868 67,373 Oshkosh B'Gosh, Inc., Class A 1,877 40,281 Oxford Industries, Inc. * (a) 1,146 38,827 Phillips Van Heusen Corp. 4,805 85,241 Quiksilver, Inc. * 9,632 170,775 Russell Corp. * 4,931 86,588 Stage Stores, Inc. * (a) 2,848 79,459 Stride Rite Corp. 7,218 82,141 The Gymboree Corp. * 5,509 94,920 Unifi, Inc. * 9,096 58,669 Unifirst Corp. * 1,891 44,836 Vans, Inc. * (a) 3,815 43,529 Warnaco Group, Inc. * 6,459 103,021 Wellman, Inc. 6,297 64,292 Wolverine World Wide, Inc. 7,140 145,513 ----------------- 2,006,038
The accompanying notes are an integral part of the financial statements. 228 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- AUTO PARTS - 0.52% Aftermarket Technology Corp. * 2,845 $ 39,033 CSK Auto Corp. * 6,199 116,355 Federal Signal Corp. 8,406 147,273 Keystone Automotive Industries, Inc. * 2,161 54,803 Modine Manufacturing Company 4,121 111,185 Strattec Security Corp. * 682 41,541 Superior Industries International, Inc. 3,681 160,197 TBC Corp. * 2,992 77,224 Tower Automotive, Inc. * (a) 11,151 76,161 Visteon Corp. 23,522 244,864 ----------------- 1,068,636 AUTO SERVICES - 0.20% Copart, Inc. * 12,264 202,356 Dollar Thrifty Automotive Group, Inc. * 4,077 105,757 Lithia Motors, Inc., Class A 2,365 59,622 Midas, Inc. * (a) 2,882 41,213 ----------------- 408,948 AUTOMOBILES - 0.25% Dura Automotive Systems, Inc. * 3,520 44,950 Monaco Coach Corp. * 4,590 109,242 Monro Muffler Brake, Inc. * 2,039 40,800 Tenneco Automotive, Inc. * 8,181 54,731 Thor Industries, Inc. 3,116 175,182 United Auto Group, Inc. 2,980 93,274 ----------------- 518,179 BANKING - 8.27% 1St Source Corp. 2,405 51,732 ABC Bancorp 2,767 44,189 Alabama National BanCorp 1,540 80,927 Allegiant Bancorp, Inc. 2,305 64,655 Amcore Financial, Inc. 3,880 104,838 American National Bankshares, Inc. (a) 1,568 41,521 Americanwest BanCorp * 2,116 48,245 Anchor BanCorp Wisconsin, Inc. 3,423 85,233 Arrow Financial Corp. 1,741 48,348 BancTrust Financial Group, Inc. 2,442 39,121 Bank Granite Corp. 2,590 56,410 Bank Mutual Corp. 6,295 71,700 Bank Of The Ozarks, Inc. (a) 1,822 41,013 Bankatlantic Bancorp, Inc., Class A 7,234 137,446 BankUnited Financial Corp., Class A * 4,895 126,242 Banner Corp. 2,065 51,935 Bay View Capital Corp. 11,819 25,293 Berkshire Hill Bancorp, Inc. 1,152 41,702 Boston Private Financial Holdings, Inc. (a) 3,465 86,071 Brookline Bancorp, Inc. 9,299 142,647 Bryn Mawr Bank Corp. (a) 1,878 45,992 BSB Bancorp Inc. 1,592 62,884 C + F Financial Corp. 886 35,174 Camco Financial Corp. 2,671 46,288 Camden National Corp. 1,675 50,853 Capital City Bank Group, Inc. (a) 1,460 67,145 Capital Corporation of The West * 1,071 42,454 Capitol Bancorp, Ltd. 1,776 50,438 Cascade Bancorp (a) 2,587 49,826 Cathay Bancorp, Inc. * 3,262 181,628 Cavalry BanCorp, Inc. (a) 2,155 37,863 CB Bancshares, Inc. 800 50,080 CCBT Financial Companies, Inc. * 2,037 71,193 Center Bancorp, Inc. (a) 2,048 40,264 Central Coast Bancorp * 2,387 43,300 Central Pacific Financial Corp. 2,361 70,924 Century Bancorp, Inc. 1,037 36,772 CFS Bancorp, Inc. 2,933 43,526 Chemical Financial Corp. 4,087 148,726 Chittenden Corp. 5,150 173,246 Citizens Banking Corp. 7,175 234,766 Citizens First Bancorp, Inc. 2,075 47,310 CityBank 1,609 52,293 CNB Financial Corp./PA 1,051 44,226 Coastal Bancorp, Inc. 1,129 46,413 Coastal Financial Corp. 2,546 44,911 CoBiz, Inc. 1,958 36,066 Columbia Bancorp 1,309 41,823 Columbia Bankcorp Oregon 2,308 39,813 Columbia Banking System, Inc. 2,749 59,543 Commercial Bankshares, Inc. * 1,078 36,178 Commercial Federal Corp. 7,272 194,235 Community Bank Systems, Inc. 1,608 78,792 Community Banks, Inc. * 1,491 58,611 Community First Bankshares, Inc. 5,796 167,736 Community Trust Bancorp, Inc. 2,392 72,244 Connecticut Bancshares, Inc. 1,690 87,103 Corus Bankshares, Inc. 1,808 57,060 CVB Financial Corp. 5,904 113,882 Digital Insight Corp. * 5,344 133,066 Dime Community Bancorp, Inc. 3,424 105,322 East West Bancorp, Inc. 3,600 193,248 Eastern Virginia Bankshares, Inc. (a) 1,318 37,999 ESB Financial Corp. (a) 2,328 38,156 Evertrust Financial Group, Inc. 1,283 40,851 Exchange National Bancshares, Inc. (a) 1,107 40,018 Farmers Capital Bank Corp. 1,445 49,144 FFLC Bancorp, Inc. 1,305 37,519 Fidelity Bankshares, Inc. * 2,336 73,350 Financial Institutions, Inc. * 1,790 50,532 First Bancorp 1,476 46,361 First Busey Corp. * 1,600 43,200 First Charter Corp. * 5,234 102,325 First Citizens Bancshares, Inc. 966 117,398 First Commonwealth Financial Corp. 9,451 134,771 First Community Bancorp 1,973 71,304 First Community Bancshares, Inc. 1,622 53,786 First Defiance Financial Corp. 1,377 36,697 First Essex Bancorp, Inc. * 1,130 65,698 First Federal Capital Corp. 3,079 69,339 First Financial BanCorp * 5,567 88,794 First Financial Bankshares, Inc. 2,126 88,654 First Financial Corp. 2,344 70,343 First Financial Holdings, Inc. 2,238 69,960 First Indiana Corp. 2,315 43,406 First M&F Corp. 1,052 39,871 First Merchants Corp. 3,076 78,500 First National Corp. 1,724 51,737 First Niagara Financial Group, Inc. 12,206 181,991 First Oak Brook Bancshares, Inc., Class A 1,304 39,133 First of Long Island Corp. 928 39,904 First Place Financial Corp. (a) 2,728 53,278 First Republic Bank 1,682 60,216 First Sentinel Bancorp, Inc. (a) 3,526 74,258 First South Bancorp, Inc. (a) 1,077 39,311 First Street Bancorporation 1,506 52,333 First United Corp. 1,804 43,963 Firstbank Corp. 1,375 42,845
The accompanying notes are an integral part of the financial statements. 229 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- BANKING - CONTINUED Firstfed America Bancorp, Inc. 2,621 $ 68,225 Flagstar Bancorp, Inc. 4,899 104,937 Floridafirst Bancorp, Inc. 1,656 54,814 Flushing Financial Corp. 2,634 48,150 FNB Corp. of North Carolina * 1,633 34,587 FNB Corp. of Virginia 1,705 50,639 Foothill Independent Bancorp 1,506 35,632 Frontier Financial Corp. 2,275 75,439 Georgia Financial, Inc. 1,508 52,373 German American Bancorp (a) 2,430 42,520 Glacier Bancorp, Inc. 3,055 98,982 Gold Banc Corporation, Inc. (a) 6,284 88,353 Great Southern Bancorp, Inc. 1,119 51,888 Greater Bay Bancorp (a) 9,055 257,886 Greene County Bancshares, Inc. 1,548 36,037 Hancock Holding Company 2,033 110,941 Hanmi Financial Corp. 1,872 37,009 Harleysville National Corp. 4,001 120,430 Hawthorne Financial Corp. * 2,159 60,409 Heartland Financial USA, Inc. 1,799 33,452 Heritage Commerce Corp. * 3,497 42,838 Heritage Financial Corp. 1,869 40,894 Horizon Financial Corp. 2,730 47,802 Hudson River Bancorp, Inc. 2,646 103,273 Humboldt Bancorp (a) 2,806 49,161 IBERIABANK Corp. 1,111 65,549 IBT Bancorp, Inc. (a) 718 42,527 Independent Bank Corp. - MA 2,144 61,790 Independent Bank Corp. - MI 3,277 92,936 Integra Bank Corp. * (a) 2,824 62,063 Interchange Financial Services Corp. 2,193 55,483 Irwin Financial Corp. (a) 2,614 82,080 Klamath First Bancorp, Inc. 1,600 42,464 Lakeland Bancorp, Inc. (a) 3,008 48,308 Lakeland Financial Corp. 1,234 43,585 LNB Bancorp, Inc. 1,900 38,570 Local Financial Corp. * 3,161 65,875 LSB Bancshares, Inc. 2,659 46,267 Macatawa Bank Corp. 1,876 53,110 MAF Bancorp, Inc. 3,173 132,949 Main Street Banks, Inc. (a) 2,377 62,990 MainSource Financial Group, Inc. 1,615 49,529 MassBank Corp. 871 37,105 MB Financial, Inc. 2,817 102,539 MBT Financial Corp. 3,033 50,075 Mercantile Bankcorp * 1,251 45,662 Merchants Bancshares, Inc. 1,300 39,715 Mid-State Bancshares 3,930 99,979 Midwest Banc Holdings, Inc. (a) 1,866 41,519 Mutualfirst Financial, Inc. 1,528 38,720 Nara Bancorp Inc. 1,838 50,177 National Penn Bancshares, Inc. (a) 3,607 115,857 NBC Capital Corp. 1,563 41,685 Netbank, Inc. 8,762 116,973 Northern States Financial Corp. 1,217 35,183 Northwest Bancorp, Inc. 1,616 34,518 Old Second Bancorp, Inc. * 1,215 60,142 Omega Financial Corp. 1,594 61,353 Oriental Financial Group, Inc. 2,318 59,565 PAB Bankshares, Inc. (a) 2,645 41,103 Pacific Capital Bancorp * 5,551 204,388 Parkvale Financial Corp. * 1,538 41,295 Partners Trust Financial Group 1,331 45,254 Patriot Bank Corp. 1,832 52,414 Peapack Gladstone Financial, Corp. (a) 1,588 49,228 Pennrock Financial Services, Corp. 1,604 49,852 Peoples Bancorp, Inc. (a) 1,983 58,518 Peoples Holding Company 1,087 35,871 PFF Bancorp, Inc. 1,933 70,129 PrivateBankcorp, Inc. (a) 1,232 56,081 Prosperity Bancshares, Inc. (a) 2,432 54,769 Provident Bankshares Corp. 3,724 109,635 Provident Financial Services 7,689 145,322 Quaker City Bancorp, Inc. 964 44,874 R & G Financial Corp., Class B 3,035 120,793 Republic Bancorp, Inc. 9,553 128,870 Republic Bancshares, Inc. 1,561 49,125 Riggs National Corp. 2,738 45,259 S & T Bancorp, Inc. 4,246 126,955 S Y Bancorp, Inc. (a) 2,086 42,888 Sandy Spring Bancorp, Inc. (a) 2,329 87,105 Seacoast Banking Corp. (a) 2,366 41,074 Second Bancorp, Inc. (a) 1,683 44,431 Security Bank Corp. 1,101 34,682 Shore Bancshares, Inc. (a) 1,235 47,041 Silicon Valley Bancshares * (a) 5,105 184,137 Simmons First National Corp., Class A 2,682 74,828 Sound Federal Bancorp, Inc. (a) 3,211 50,059 South Financial Group, Inc. 9,670 269,406 Southern Financial Bancorp Inc. 1,171 50,435 Southside Bancshares, Inc. 2,475 45,788 Southwest BanCorp of Texas, Inc. 4,563 177,273 Southwest Bancorp, Inc. 2,521 45,075 State Bancorp, Inc. * 1,926 46,725 Staten Islands Bancorp, Inc. 9,064 203,940 Sterling Bancorp 2,208 62,928 Sterling Bancshares, Inc. 7,176 95,656 Sterling Financial Corp. 3,052 84,693 Sterling Financial Corp. * 2,505 85,746 Suffolk Bancorp (a) 1,981 68,404 Summit Bankshares, Inc. 1,493 41,595 Sun Bancorp, Inc. (a) 1,948 36,934 Susquehanna Bancshares, Inc. 6,213 155,387 Texas Regional Bancshares, Inc., Class A 3,740 138,380 The Trust Company of New Jersey 3,073 121,937 Tierone Corp. * 3,866 88,763 Tompkins Trustco, Inc. 1,433 65,990 Trico Bancshares 1,097 34,621 Troy Financial Corp. 1,071 37,485 TrustCo Bank Corp. * (a) 12,420 163,323 U.S.B. Holding Company, Inc. * (a) 2,305 44,694 UCBH Holdings, Inc. 7,024 273,725 Umpqua Holdings Corp. * (a) 5,005 104,054 Union Bankshares Corp. 1,650 50,325 United Community Banks, Inc. * (a) 3,169 104,260 United National Bancorp 2,936 104,903 United Security Bancshares, Inc. (a) 1,536 44,467 Unizan Financial Corp. 3,724 75,411 Virginia Financial Group, Inc. (a) 1,544 54,843 W Holding Company, Inc. 11,968 222,719 Washington Trust Bancorp, Inc. 2,502 65,552 Wayne Bancorp, Inc. 1,553 41,821 Waypoint Financial Corp. 4,938 107,105 Wesbanco, Inc. 2,960 81,962
The accompanying notes are an integral part of the financial statements. 230 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- BANKING - CONTINUED West Bancorp. , Inc. (a) 3,299 $ 57,073 West Coast Bancorp 2,949 62,932 Western Sierra Bancorp * (a) 928 43,616 WFS Financial, Inc. 2,209 93,794 Willow Grove Bancorp, Inc. 2,725 48,396 Wintrust Financial Corp. (a) 3,354 151,265 Yadkin Valley Bank & Trust Company * (a) 2,397 40,989 Yardville National Bancorp 1,750 45,045 ----------------- 16,948,358 BIOTECHNOLOGY - 1.20% Applera Corp. - Celera Genomics Group * 12,955 180,204 Cell Therapeutics, Inc. * (a) 5,981 52,035 Ciphergen Biosystems, Inc. * (a) 4,391 49,355 Digene Corp. * 2,223 89,142 Discovery Laboratories, Inc. * (a) 6,808 71,416 Exelixis, Inc. * 9,665 68,428 Geron Corp. * (a) 7,162 71,405 Integra LifeSciences Holdings Corp. * 3,237 92,675 Intermune, Inc. * 4,634 107,323 Kosan Biosciences, Inc. * 3,845 37,912 Lexicon Genetics, Inc. * (a) 7,732 45,542 Martek Biosciences Corp. * (a) 4,076 264,818 Medarex, Inc. * (a) 13,740 85,600 MGI Pharma, Inc. * (a) 5,612 230,934 Molecular Devices Corp. * 2,818 53,514 Myriad Genetics, Inc. * (a) 5,192 66,769 Nektar Therapeutics * (a) 8,696 118,353 Progenics Pharmaceuticals, Inc. * 2,198 41,454 Progress Software Corp. * 4,930 100,868 Regeneration Technologies, Inc. * (a) 4,566 50,043 Serologicals Corp. * (a) 4,145 77,097 Tanox, Inc. * (a) 4,479 66,513 Telik, Inc. * (a) 6,931 159,482 Transkaryotic Therapies, Inc. * (a) 5,516 86,105 Trimeris, Inc. * (a) 2,628 55,135 Tularik, Inc. * (a) 8,974 144,930 ----------------- 2,467,052 BROADCASTING - 0.49% Cumulus Media, Inc., Class A * 7,754 170,588 Emmis Communications Corp., Class A * 7,946 214,939 Gray Television, Inc., Common 7,459 112,780 Mediacom Communications Corp., Class A * 9,752 84,550 Regent Communications, Inc. * 7,582 48,146 Saga Communications, Inc., Class A * 2,733 50,643 Salem Communications Corp., Class A * 1,744 47,297 Sinclair Broadcast Group, Inc., Class A * (a) 7,263 108,364 Spanish Broadcasting Systems, Inc., Class A * 6,227 65,384 World Wrestling Entertainment, Inc., Class A 3,524 46,164 Young Broadcasting, Inc., Class A * 2,657 53,246 ----------------- 1,002,101 BUILDING MATERIALS & CONSTRUCTION - 0.67% Apogee Enterprises, Inc. 4,433 50,315 Dycom Industries, Inc. * 8,543 229,123 ElkCorp 3,508 93,664 Griffon Corp. * 4,196 85,011 Haemonetics Corp. * 3,001 71,694 Hughes Supply, Inc. 4,117 204,285 Lennox International, Inc. * 7,767 129,709 LSI Industries, Inc. 3,878 52,353 NCI Building Systems, Inc. * 3,438 82,168 Standard-Pacific Corp. 5,510 267,510 Trex Company, Inc. * (a) 1,315 49,944 WCI Communities, Inc. * 3,010 62,036 ----------------- 1,377,812 BUSINESS SERVICES - 4.13% ABM Industries, Inc. 6,711 116,838 Activcard Corp. * 7,554 59,525 Administaff, Inc. * (a) 3,715 64,567 Advanced Marketing Services, Inc. (a) 3,392 38,669 ADVO, Inc. 5,337 169,503 American Management Systems, Inc. * 7,992 120,439 AMR Corp. * 27,944 361,875 Arbitron, Inc. * 5,257 219,322 Banta Corp. 3,888 157,464 Black Box Corp. * (a) 2,884 132,866 Bowne & Company, Inc. 6,301 85,442 Bright Horizons Family Solutions, Inc. * 2,169 91,098 Brinks Company 9,662 218,458 Catalina Marketing Corp. * 6,811 137,310 CDI Corp. 2,150 70,412 Central Parking Corp. * (a) 3,755 56,062 Charles River Associates, Inc. * 1,545 49,425 Clark, Inc. * 3,161 60,818 Coinstar, Inc. * (a) 4,108 74,190 Compucredit Corp. * 2,602 55,371 Cornell Corrections, Inc. * 2,731 37,278 CoStar Group, Inc. * 2,703 112,661 CSG Systems International, Inc. * 9,846 122,976 eFunds Corp. * 8,568 148,655 Electro Rent Corp. * 3,426 45,703 Ennis Business Forms, Inc. * 3,574 54,682 Entrust Technologies, Inc. * 10,177 41,522 Euronet Worldwide, Inc. * 3,076 55,368 Forrester Research, Inc. * 2,847 50,876 FTI Consulting, Inc. * (a) 7,369 172,213 Gartner Group, Inc., Class A * 14,100 159,471 Gevity HR, Inc. * (a) 2,310 51,374 Healthcare Services Group Inc. 2,204 42,515 Heidrick & Struggles International, Inc. * 3,069 66,904 Hudson Highland Group, Inc. * (a) 1,695 40,426 Information Holdings, Inc. * 2,407 53,195 Insight Enterprises, Inc. * 8,456 158,973 InterCept, Inc. * (a) 3,747 42,304 Intervoice Brite, Inc. * 6,323 75,054 John H. Harland Company 4,846 132,296 Kelly Services, Inc., Class A 3,096 88,360 Korn/Ferry International * 6,237 83,202 Kroll, Inc. * 6,421 166,946 Labor Ready, Inc. * (a) 7,409 97,058 Lightbridge, Inc. * 5,865 53,371 MAXIMUS, Inc. * (a) 2,829 110,699 McGrath Rentcorp 1,548 42,183 MPS Group, Inc. * 17,004 158,987 National Processing, Inc. * 1,491 35,113 Navigant Consulting Company * 8,058 151,974 NCO Group, Inc. * 3,369 76,712 New England Business Service, Inc. 1,902 56,109 Paxar Corp. * 5,292 70,913 PDI, Inc. * 1,348 36,140 Perot Systems Corp., Class A * 13,293 179,190 Pre-Paid Legal Services, Inc. * (a) 2,901 75,774 PRG-Schultz International, Inc. * (a) 8,572 42,003 Quest Software, Inc. * 7,280 103,376
The accompanying notes are an integral part of the financial statements. 231 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- BUSINESS SERVICES - CONTINUED R.H. Donnelley Corp. * 3,526 $ 140,476 Rent-Way, Inc. * (a) 4,930 40,377 Resource America, Inc. 3,550 53,250 Resources Connection, Inc. * 3,654 99,791 Rewards Network, Inc. * (a) 4,729 50,411 Right Management Consultants, Inc. * 2,898 54,077 Rollins, Inc. 3,410 76,895 Roto Rooter, Inc. 1,912 88,143 Scansource, Inc. * (a) 1,956 89,233 Seachange International, Inc. * 4,514 69,516 Sfbc International, Inc. * (a) 1,415 37,582 Sonicwall, Inc. * 9,950 77,610 Sothebys Holdings, Inc., Class A * 8,355 114,129 SOURCECORP, Inc. * 2,973 76,198 Spherion Corp. * 11,212 109,765 SRA International, Inc., Class A * 1,532 66,029 StarTek, Inc. 1,955 79,744 Surmodics, Inc. * (a) 2,671 63,837 Systems & Computer Technology Corp. * 6,279 102,662 TALX Corp. (a) 2,557 58,888 Teletech Holdings, Inc. * 6,600 74,580 TETRA Technologies, Inc. * 8,967 222,920 The Titan Corp. * 14,151 308,633 TRC Companies, Inc. * (a) 2,257 47,532 Tyler Technologies, Inc. * 7,870 75,788 URS Corp. * 3,030 75,780 Volt Information Sciences, Inc. * 1,754 39,640 Wackenhut Corrections Corp. * 1,996 45,509 Watson Wyatt & Company Holdings * 5,978 144,369 Wind River Systems, Inc. * 13,885 121,633 Wireless Facilities, Inc. * 6,108 90,765 Zhone Technologies, Inc. * (a) 7,538 37,238 ----------------- 8,465,210 CABLE AND TELEVISION - 0.28% Charter Communications, Inc., Class A * (a) 46,961 188,783 Insight Communications Company, Inc., Class A * (a) 8,681 89,501 Lin TV Corp. * 4,845 125,050 LodgeNet Entertainment Corp. * 2,376 43,433 Time Warner Telecom, Inc., Class A * (a) 7,448 75,448 TiVo, Inc. * (a) 6,721 49,736 ----------------- 571,951 CELLULAR COMMUNICATIONS - 0.35% Dobson Communications Corp., Class A * (a) 5,513 36,220 NII Holdings, Inc., Class B * (a) 2,255 168,291 RF Micro Devices, Inc. * (a) 30,672 308,253 Western Wireless Corp., Class A * (a) 10,991 201,795 ----------------- 714,559 CHEMICALS - 1.86% A. Schulman, Inc. * 5,200 110,864 Aceto Corp. * 1,982 50,620 Albany Molecular Research, Inc. * 4,974 74,710 Albemarle Corp. 5,360 160,639 AmCol International Corp. 3,508 71,212 Arch Chemicals, Inc. 3,481 89,322 Cabot Microelectronics Corp. * (a) 3,250 159,250 Calgon Carbon Corp. 7,433 46,159 Cambrex Corp. 3,545 89,547 Crompton Corp. 21,159 151,710 Ethyl Corp. * 2,805 61,345 Ferro Corp. 6,126 166,689 FMC Corp. * 6,138 209,490 Georgia Gulf Corp. * 4,765 137,613 Great Lakes Chemical Corp. 6,203 168,660 H.B. Fuller Company 4,870 144,834 Hercules, Inc. * 15,899 193,968 IMC Global, Inc. 19,773 196,346 MacDermid, Inc. 4,460 152,710 Millennium Chemicals, Inc. 11,440 145,059 Minerals Technologies, Inc. 2,867 169,870 Octel Corp. 2,081 40,975 Olin Corp. 9,298 186,518 OM Group, Inc. * 5,088 133,255 Polyone Corp. 17,331 110,745 Quaker Chemical Corp. * 1,606 49,385 Solutia, Inc. 20,433 7,458 Techne Corp. * 7,189 271,600 Valence Technology, Inc. * (a) 9,985 38,442 Valhi, Inc. 4,697 70,267 W. R. Grace & Company * 13,633 35,037 WD-40 Company * 3,153 111,490 ----------------- 3,805,789 COAL - 0.23% Arch Coal, Inc. 7,932 247,241 Massey Energy Corp. * 10,918 227,094 ----------------- 474,335 COMPUTERS & BUSINESS EQUIPMENT - 2.66% Advanced Digital Information Corp. * 11,194 156,716 Aether Systems, Inc. *, 8,728 41,458 Agilysys, Inc. * (a) 5,332 59,452 Anteon International Corp. * 3,278 118,172 Applied Films Corp. * 2,704 89,286 Avanex Corp. * (a) 11,103 55,404 Benchmark Electronics, Inc. * 6,486 225,778 Brooks Automation, Inc. * 6,646 160,634 CACI International, Inc., Class A * 5,053 245,677 Computer Network Technology Corp. * (a) 5,331 50,858 Concurrent Computer Corp. * 12,216 53,384 Cray, Inc. * 12,612 125,237 Dot Hill Systems Corp. * 6,404 97,021 Echelon Corp. * (a) 5,453 60,746 Electronics For Imaging, Inc. * 7,799 202,930 EMC Corp. * 17,156 221,655 EMS Technologies, Inc. * 2,221 45,619 Enterasys Networks, Inc. * 36,699 137,621 Extreme Networks, Inc. * 17,418 125,584 Falconstor Software, Inc. * (a) 6,646 58,086 FileNET Corp. * 6,182 167,409 Gateway, Inc. * 39,380 181,148 Gerber Scientific, Inc. * 4,532 36,075 Helix Technology Corp. 4,776 98,290 Infocus Corp. * 7,273 70,403 Intergraph Corp. * 8,233 196,933 Iomega Corp. * (a) 10,191 60,942 Ixia * 4,332 50,684 Komag Inc. * (a) 4,264 62,382 Kronos, Inc. * 5,260 208,349 Lexar Media, Inc. * 10,863 189,342 Micros Systems, Inc. * (a) 2,975 128,996 Mindspeed Technologies, Inc. * 16,379 112,196 MTS Systems Corp. * 3,802 73,112 Netscout Systems, Inc. * 4,226 32,118 Oplink Communications, Inc. * 20,388 48,727
The accompanying notes are an integral part of the financial statements. 232 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- COMPUTERS & BUSINESS EQUIPMENT - CONTINUED Overland Storage, Inc. * 1,848 $ 34,742 Palmone, Inc. * (a) 6,930 81,427 Pinnacle Systems, Inc. * 11,494 98,044 Plexus Corp. * 7,310 125,513 Pomeroy Computer Resources, Inc. * 2,464 36,319 Quantum Corp. * 26,755 83,476 RadiSys Corp. * 3,408 57,459 Rainbow Technologies, Inc. * 4,519 50,884 Silicon Graphics, Inc. * (a) 40,866 55,986 Silicon Storage Technology, Inc. * 14,253 156,783 Sonic Solutions * (a) 2,913 44,569 Standard Microsystems Corp. * 2,220 56,166 Stratasys, Inc. * (a) 1,574 42,894 Sybase, Inc. * 15,584 320,719 Sykes Enterprises, Inc. * 4,763 40,771 Synaptics, Inc. * 3,249 48,670 Transmeta Corp. * (a) 21,267 72,308 ----------------- 5,455,154 CONSTRUCTION MATERIALS - 0.69% Ameron International Corp. 1,310 45,444 Applied Industrial Technologies, Inc. 3,027 72,224 Centex Construction Products, Inc. * 1,118 67,382 Clarcor, Inc. 4,289 189,145 EMCOR Group, Inc. * 2,336 102,550 Granite Construction, Inc. 5,760 135,303 JLG Industries, Inc. * 7,857 119,662 Regal Beloit Corp. * 4,318 94,996 Simpson Manufacturing, Inc. * 2,579 131,168 Standex International Corp. 2,241 62,748 Trinity Industries, Inc. * (a) 6,222 191,887 Universal Forest Products, Inc. 2,841 91,423 USG Corp. * (a) 6,634 109,925 ----------------- 1,413,857 CONSTRUCTION & MINING EQUIPMENT - 0.26% A S V, Inc. * 1,391 51,968 Astec Industries, Inc. * 3,324 40,785 Carbo Ceramics, Inc. 1,602 82,102 Gulf Islands Fabrication, Inc. * 2,092 35,627 Kaman Corp., Class A * 4,582 58,329 Matrix Service Company * 3,070 55,721 Parker Drilling Company * 19,213 48,993 Washington Group International, Inc. * 4,522 153,612 ----------------- 527,137 CONTAINERS & GLASS - 0.26% Greif Brothers Corp., Class A * 2,337 82,987 Jarden Corp. * (a) 4,636 126,748 Longview Fibre Company 9,511 117,461 Mobile Mini, Inc. * (a) 2,598 51,233 Silgan Holdings, Inc. * 1,941 82,667 West Pharmaceutical Services, Inc. 2,006 68,003 ----------------- 529,099 COSMETICS & TOILETRIES - 0.12% Chattem, Inc. * 2,931 52,465 Elizabeth Arden, Inc. * 3,002 59,800 Nu Skin Enterprises, Inc., Class A 4,880 83,399 Playtex Products, Inc. * 6,549 50,624 ----------------- 246,288 CRUDE PETROLEUM & NATURAL GAS - 0.58% Cabot Oil & Gas Corp., Class A 4,366 128,142 Cascade Natural Gas Corp. * 2,755 58,103 Cimarex Energy Company * 7,133 190,380 Harvest Natural Resources, Inc. * 7,123 70,874 Hydril * 2,444 58,485 Nuevo Energy Company * 3,289 79,495 Patina Oil & Gas Corp. 5,036 246,714 Quicksilver Resources, Inc. * (a) 2,332 75,323 Spinnaker Exploration Company * 4,373 141,117 Unit Corp. * 6,264 147,517 ----------------- 1,196,150 DOMESTIC OIL - 1.36% Berry Petroleum Company, Class A 2,994 60,629 Comstock Resources, Inc. * 5,283 101,962 Denbury Resources, Inc. * 6,407 89,121 Encore Aquisition Company * 1,646 40,574 Energy Partners, Ltd. * 4,282 59,520 EnergySouth, Inc. 1,207 42,245 Evergreen Resources, Inc. * 6,516 211,835 Forest Oil Corp. * 7,893 225,503 Frontier Oil Corp. * (a) 4,937 85,015 Holly Corp. * (a) 1,981 54,478 Houston Exploration Company * 2,340 85,457 KCS Energy, Inc. * 6,742 71,128 Magnum Hunter Resources, Inc. * 12,338 117,334 Maverick Tube Corp. * 7,522 144,798 McMoran Exploration Company * (a) 2,376 44,550 Meridian Resource Corp. * (a) 7,221 42,893 Oil States International, Inc. * 4,360 60,778 Plains Exploration & Production Company * 6,792 104,529 Plains Resources, Inc. * 4,309 69,159 Prima Energy Corp. * 1,725 60,651 Range Resources Corp. (a) 9,786 92,478 Remington Oil Gas Corp. * 3,746 73,759 St. Mary Land & Exploration Company (a) 5,007 142,700 Stone Energy Corp. * 3,906 165,810 Swift Energy Company * 4,827 81,335 TETRA Technologies, Inc. * 3,384 82,028 Tom Brown, Inc. * 6,225 200,756 Vintage Petroleum, Inc. 9,045 108,811 World Fuel Services Corp. * 2,022 68,647 ----------------- 2,788,483 DRUGS & HEALTH CARE - 2.88% Advanced Tissue Sciences, Inc. 4,749 703 Aksys, Ltd. * (a) 5,989 52,883 ALARIS Medical Systems, Inc. * 3,395 51,638 ALPHARMA, Inc., Class A * 7,059 141,886 Antigenics, Inc. * (a) 3,989 45,155 Aphton Corp. * (a) 5,327 31,962 Ariad Pharmaceuticals, Inc. * 7,620 56,769 Arrow International, Inc. 4,107 102,593 Atherogenics, Inc. * (a) 6,692 100,045 Atrix Labatories, Inc. * 3,889 93,492 Avant Immunotherapeutics, Inc. * (a) 13,873 38,012 Beverly Enterprises, Inc. * (a) 16,622 142,783 Biomarin Pharmaceutical, Inc. * (a) 11,974 93,026 Bradley Pharmaceuticals, Inc., Class A * (a) 1,627 41,375 Cardiodynamics International Corp. * (a) 7,364 43,963 Cell Genesys, Inc. * (a) 6,450 83,463 Closure Medical Corp. * 1,346 45,670 Columbia Laboratories, Inc. * (a) 6,694 42,172 Conmed Corp. * 5,325 126,735 Corixa Corp. * (a) 9,140 55,206 Curagen Corp. * 8,492 62,246 CV Therapeutics, Inc. * (a) 5,249 76,950 D & K Wholesale Drug, Inc. 2,932 39,758 Dade Behring Holdings, Inc. * 7,022 250,966
The accompanying notes are an integral part of the financial statements. 233 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- DRUGS & HEALTH CARE - CONTINUED Datascope Corp. * 1,957 $ 70,158 Decode Genetics, Inc. * (a) 8,598 70,418 Diversa Corp. * 4,276 39,553 Drugstore.com, Inc. * (a) 6,478 35,694 Duane Reade, Inc. * 4,367 73,890 Encysive Pharmaceuticals, Inc. * 8,451 75,636 Enzo Biochem, Inc. * (a) 4,150 74,326 Enzon Pharmaceuticals, Inc. * (a) 8,031 96,372 Gene Logic, Inc. * (a) 6,825 35,422 Gentiva Health Services, Inc. * (a) 4,720 59,661 Healthextras, Inc. * 3,222 43,175 I-STAT Corp. * 3,343 51,148 IDX Systems Corp. * (a) 3,270 87,701 ILEX Oncology, Inc. * 6,987 148,474 Immucor Corp. * (a) 3,406 69,448 Immunogen, Inc. * 8,702 43,945 Immunomedics, Inc. * (a) 8,281 37,761 Impax Laboratories, Inc. * (a) 5,755 82,814 Intuitive Surgical, Inc. * (a) 5,246 89,654 Invacare Corp. * 4,609 186,065 K-V Pharmaceutical Company, Class A * 5,954 151,827 Kos Pharmaceuticals, Inc. * (a) 2,381 102,478 Kyphon, Inc. * 3,269 81,169 Landauer, Inc. 1,399 57,051 Louisiana Jolla Pharmaceutical Company * 10,868 46,624 Luminex Corp. * (a) 4,268 40,034 Magellan Health Services, Inc. * 2,294 184 Matria Healthcare, Inc. * 1,986 41,964 Maxygen, Inc. * 4,563 48,505 Mentor Corp. (a) 7,264 174,772 NDCHealth Corp. 6,252 160,176 NeoPharm, Inc. * (a) 2,695 49,372 Ocular Sciences, Inc. * 3,458 99,279 OraSure Technologies, Inc. * (a) 7,549 60,090 Orthodontic Centers America, Inc. * (a) 9,645 77,642 OrthoLogic Corp. * 7,039 43,149 Parexel International Corp. * 4,860 79,024 Perrigo Company 11,216 176,316 Pharmacopeia, Inc. * 4,716 67,014 Praecis Pharmaceuticals, Inc. * 8,664 55,796 Prime Hospitality Corp. * 7,102 72,440 Quidel Corp. * 5,606 60,657 Savient Pharmaceuticals, Inc. * 10,942 50,443 Sola International, Inc. * 5,257 98,832 Sunrise Senior Living, Inc. * (a) 2,734 105,915 Supergen, Inc. * (a) 6,001 66,011 Synovis Life Technologies, Inc. * (a) 1,935 39,358 Theragenics Corp. * 7,008 38,334 United Surgical Partners International, Inc. * 3,161 105,830 US Oncology, Inc. * (a) 11,772 126,667 Ventana Medical Systems, Inc. * 2,259 89,005 Vital Images, Inc. * 1,953 34,842 Vital Signs, Inc. 1,189 38,880 Vivus, Inc. * (a) 9,449 35,812 Zymogenetics, Inc. * (a) 3,017 46,764 ----------------- 5,913,022 EDUCATIONAL SERVICES - 0.25% eCollege.com * 2,728 50,359 Learning Tree International, Inc. * (a) 2,023 35,180 Renaissance Learning, Inc. * (a) 1,610 38,769 Strayer Education, Inc. * 1,868 203,294 Sylvan Learning Systems, Inc. * 6,287 181,003 ----------------- 508,605 ELECTRICAL EQUIPMENT - 1.15% A.O. Smith Corp. 2,787 97,684 Aaon, Inc. * 2,136 41,460 Anaren, Inc. * 4,339 61,267 Anixter International, Inc. * 5,395 139,623 Artesyn Technologies, Inc. * 6,212 52,926 Audiovox Corp., Class A * 3,257 41,820 Baldor Electric Company 4,972 113,610 BEI Technologies, Inc. 2,278 45,560 Belden, Inc. * 4,075 85,942 C & D Technologies, Inc. * 3,764 72,156 C-COR.net Corp. * 5,915 65,834 Cable Design Technologies Corp. * (a) 7,336 65,951 Cohu, Inc. * 3,814 73,038 Dupont Photomasks, Inc. * (a) 2,293 55,353 Encore Wire Corp. * 2,262 40,060 Excel Technology, Inc. * 1,715 56,355 General Cable Corp. * (a) 7,025 57,254 Genlyte Group, Inc. * 2,097 122,423 Global Power Equipment Group, Inc. * (a) 5,915 39,512 Littelfuse, Inc. * 3,427 98,766 Methode Electronics, Inc., Class A * 6,080 74,358 Metrologic Instruments, Inc. * (a) 1,368 36,936 Penn Engineering & Manufacturing Corp. * 2,331 44,359 Plug Power, Inc. * (a) 5,789 41,970 Power-One, Inc. * 11,621 125,855 Rayovac Corp. * (a) 5,838 122,306 Universal Electronics, Inc. * 3,346 42,628 Vicor Corp. * 3,733 42,593 W.H. Brady Company, Class A 3,216 131,052 Watsco, Inc. 3,316 75,373 Wilson Greatbatch Technologies, Inc. * (a) 3,525 149,002 Woodhead Industries, Inc. 2,213 37,400 ----------------- 2,350,426 ELECTRIC UTILITIES - 1.35% Allegheny Energy, Inc. * 22,489 286,960 Avista Corp. 8,625 156,285 Black Hills Corp. 5,658 168,778 Central Vermont Public Service Corp. * 2,620 61,570 CH Energy Group, Inc. * (a) 2,538 119,032 Cleco Corp. 7,989 143,642 CMS Energy Corp. (a) 27,521 234,479 Connecticut Water Service, Inc. 1,823 50,406 El Paso Electric Company * 9,132 121,912 Empire District Electric Company 4,119 90,330 IDACORP, Inc. (a) 6,560 196,275 MGE Energy, Inc. 3,154 99,383 Otter Tail Corp. (a) 4,682 125,150 PNM Resources, Inc. 6,692 188,045 Quanta Services, Inc. * (a) 13,393 97,769 Sierra Pacific Resources * (a) 21,528 158,016 UIL Holding Corp. * (a) 2,093 94,394 Unisource Energy Corp. 5,238 129,169 Westar Energy, Inc. 11,660 236,115 ----------------- 2,757,710 ELECTRONICS - 2.17% Adaptec, Inc. *, 19,564 172,750 Analogic Corp. * 1,381 56,621 Artisan Components, Inc. * (a) 3,194 65,477 Bel Fuse, Inc., Class B * 1,899 61,964 Checkpoint Systems, Inc. * 6,004 113,536 CTS Corp. * 6,328 72,772 Cubic Corp. (a) 2,650 60,950 Daktronics, Inc. * 2,924 73,568 Electro Scientific Industries, Inc. * 5,150 122,570
The accompanying notes are an integral part of the financial statements. 234 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- ELECTRONICS - CONTINUED Engineered Support Systems, Inc. 2,995 $ 164,905 Fargo Electronics Inc. * (a) 2,541 32,321 FEI Company * 4,414 99,315 FLIR Systems, Inc. * 5,759 210,203 Franklin Electric, Inc. 1,100 66,539 Hutchinson Technology, Inc. * 4,087 125,634 Identix, Inc. * (a) 16,558 73,683 II-VI, Inc. * 2,079 53,638 Integrated Silicon Solution, Inc. * 5,034 78,883 Intermagnetics General Corp. * 3,035 67,256 InVision Technologies, Inc. * (a) 3,091 103,765 Itron, Inc. * (a) 3,746 68,777 Keithley Instruments, Inc. 2,426 44,396 Kemet Corp. * 15,337 209,964 Mentor Graphics Corp. * 12,177 177,054 Mercury Computer Systems, Inc. * 3,971 98,878 OSI Systems, Inc. * 2,418 46,450 Park Electrochemical Corp. * 3,097 82,040 Photon Dynamics, Inc. * 2,910 117,098 Pixelworks, Inc. * 6,293 69,475 Planar Systems Inc. * 2,642 64,253 Rogers Corp. * 2,769 122,168 Roper Industries, Inc. 4,728 232,901 SBS Technologies, Inc. * 3,172 46,660 Stoneridge, Inc. * 2,483 37,369 Superconductor Technologies * 9,969 55,627 Sycamore Networks, Inc. * 30,074 157,588 Technitrol, Inc. 7,080 146,839 Thomas & Betts Corp. 7,416 169,752 Trimble Navigation, Ltd. * 5,654 210,555 TTM Technologies, Inc. * 3,497 59,029 Universal Display Corp. * (a) 3,175 43,402 Varian, Inc. * 5,118 213,574 X-Rite, Inc. * 4,146 46,933 Zygo Corp. * 3,030 49,965 ----------------- 4,447,097 ENERGY - 0.42% Energen Corp. 5,555 227,922 Fuelcell Energy, Inc. * (a) 6,209 80,717 Hanover Compressor Company * (a) 9,586 106,884 Headwaters, Inc. * (a) 4,834 94,843 KFx, Inc. * (a) 6,068 45,813 New Jersey Resources Corp. 4,293 165,324 Southwestern Energy Company * 6,069 145,049 ----------------- 866,552 FINANCIAL SERVICES - 1.72% Accredited Home Lenders Holding Company * (a) 1,751 53,581 Actrade Financial Technologies, Ltd. * 722 921 Advanta Corp., Class B 4,516 57,444 Affiliated Managers Group, Inc. *, 3,673 255,604 Charter Municipal Mortgage Acceptance Company, SBI 7,245 153,087 Citizens South Banking Corp. 3,029 42,255 City Holding Company 2,717 95,095 Credit Acceptance Corp. * 2,810 42,993 Delphi Financial Group, Inc. 4,210 151,560 Federal Agricultural Mortgage Corp., Class C * (a) 1,551 49,570 Financial Federal Corp. * 2,701 82,516 First Citizens Banc Corp. * 1,476 41,918 Firstfed Financial Corp. * 2,702 117,537 Harbor Florida Bancshares, Inc. 3,592 106,718 Impac Mortgage Holdings, Inc. 9,303 169,408 Inveresk Research Group Inc. * 5,430 134,284 Investment Technology Group, Inc. * 8,620 139,213 Investors Real Estate Trust, SBI * 8,042 79,616 Ipayment, Inc. * 1,230 41,820 ITLA Capital Corp. * 963 48,246 Keystone Property Trust Corp., REIT 3,923 86,659 Knight Trading Group, Inc. * (a) 13,102 191,813 National Bankshares, Inc. 952 47,828 National Health Realty, Inc., REIT * 3,102 61,109 NBT Bancorp, Inc. (a) 5,690 121,994 New Century Financial Corp. (a) 4,961 196,803 Ocwen Financial Corp. * 7,897 69,967 Penns Woods Bancorp, Inc. (a) 1,096 51,183 Portfolio Recovery Associates, Inc. * (a) 2,387 63,375 Saxon Capital, Inc. * 5,027 105,316 Seacoast Financial Services Corp. 4,501 123,372 State Financial Services Corp., Class A 1,415 37,582 SWS Group, Inc. * 2,814 50,089 Triad Guaranty, Inc. * 1,403 70,641 UMB Financial Corp. 2,483 118,042 United Community Financial Corp. (a) 5,681 64,820 Westcorp, Inc. 2,446 89,401 World Acceptance Corp. * 3,024 60,208 WSFS Financial Corp. 997 44,715 ----------------- 3,518,303 FOOD & BEVERAGES - 1.00% American Italian Pasta Company, Class A * (a) 2,600 108,940 Bob Evans Farms, Inc. 5,906 191,709 Chiquita Brands International, Inc. * (a) 6,320 142,389 Coca-Cola Bottling Company 881 47,125 Corn Products International, Inc. 6,198 213,521 Farmer Brothers Company 142 44,197 Fisher Communications, Inc. * 1,036 52,836 Fleming Companies, Inc. (a) 5,111 13 Flowers Foods, Inc. 5,555 143,319 Hain Celestial Group, Inc. * 4,146 96,228 International Multifoods Corp. * 3,393 61,074 Interstate Bakeries Corp. * 8,212 116,857 J & J Snack Foods Corp. * 1,343 50,712 John B. Sanfilippo & Son, Inc. * (a) 1,055 53,847 Lance, Inc. 4,866 73,136 Peets Coffee & Tea, Inc. * (a) 2,409 41,941 Pilgrims Pride Corp. 2,916 47,618 Ralcorp Holdings, Inc. * 5,105 160,093 Riviana Foods, Inc. 1,318 36,100 Robert Mondavi Corp., Class A * 1,776 68,980 Sanderson Farms, Inc. (a) 1,023 41,227 Sensient Technologies Corp. 6,924 136,887 The Steak & Shake Company * 4,188 74,756 Usana Health Sciences * (a) 1,630 49,878 ----------------- 2,053,383 FOREST PRODUCTS - 0.06% Caraustar Industries, Inc. * 5,211 71,912 Deltic Timber Corp. 1,885 57,304 ----------------- 129,216 FUNERAL SERVICES - 0.08% Alderwoods Group, Inc. * 7,291 68,681 Stewart Enterprises, Inc., Class A * 18,616 105,739 ----------------- 174,420
The accompanying notes are an integral part of the financial statements. 235 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- FURNITURE & FIXTURES - 0.08% American Woodmark Corp. 1,086 $ 59,784 Kimball International, Inc., Class B 4,265 66,321 Stanley Furniture Company, Inc. 1,234 38,871 ----------------- 164,976 GAS & PIPELINE UTILITIES - 0.68% American States Water Company 2,812 70,300 Aquila, Inc. * 33,568 113,795 Atmos Energy Corp. 7,743 188,155 California Water Service Group (a) 2,771 75,925 Chesapeake Utilities Corp. * 2,033 52,960 Global Industries, Ltd. * 14,385 74,083 Middlesex Water Company 2,769 56,211 Northwest Natural Gas Company 3,824 117,588 NUI Corp. (a) 3,059 49,311 Semco Energy, Inc. 7,920 38,808 SJW Corp. 495 44,179 South Jersey Industries, Inc. 1,820 73,710 Southern Union Company * 9,903 182,215 Southwest Gas Corp. 5,115 114,832 Southwest Water Company (a) 3,264 52,387 The Laclede Group, Inc. * (a) 3,054 87,192 ----------------- 1,391,651 GOLD - 0.03% Royal Gold, Inc. (a) 2,822 59,064 ----------------- HEALTHCARE PRODUCTS - 2.31% Advanced Medical Optics, Inc. * 5,129 100,785 Advanced Neuromodulation Systems, Inc. * (a) 3,265 150,125 Align Technology, Inc. * (a) 8,092 133,680 American Medical Systems Holdings, Inc. * 3,798 82,796 Arthrocare Corp. * (a) 3,379 82,785 Biolase Technology, Inc. * (a) 3,658 60,723 Biosite, Inc. * (a) 2,020 58,479 Cardia Science Inc. * (a) 10,954 43,706 Coherent, Inc. * 5,305 126,259 Conceptus, Inc. * (a) 3,640 38,657 CTI Molecular Imaging, Inc. * 4,680 79,139 Cyberonics, Inc. * (a) 3,558 113,892 Cytyc Corp. * 19,923 274,140 Diagnostic Products Corp. * 3,635 166,883 EPIX Medical, Inc. * 3,186 51,868 Esperion Therapeutics, Inc. * (a) 6,144 212,644 Gen-Probe, Inc. * 8,412 306,786 Hanger Orthopedic Group, Inc. * (a) 3,947 61,455 Hologic, Inc. * (a) 3,959 68,609 ICU Medical, Inc. * (a) 2,018 69,177 IGEN International, Inc. * 3,186 187,687 INAMED Corp. * 4,725 227,083 Interpore International, Inc. * (a) 3,532 45,916 Inverness Medical Innovations, Inc. * (a) 2,449 53,339 Kensey Nash Corp. * 1,644 38,223 Lifeline Systems, Inc. * 2,256 42,864 Merit Medical Systems, Inc. * 3,012 67,040 Owens & Minor, Inc. 6,512 142,678 Polymedica Corp. (a) 3,219 84,692 Priority Healthcare Corp., Class B * (a) 6,248 150,639 SonoSite, Inc. * (a) 2,880 61,747 Sybron Dental Specialties, Inc. * 6,797 190,996 The Cooper Companies, Inc. 5,367 252,947 The Medicines Company * 7,446 219,359 Therasense, Inc. * (a) 4,507 91,492 Thoratec Corp. * (a) 8,760 113,968 Tripath Imaging, Inc. * 4,338 33,836 Viasys Healthcare, Inc. * 5,421 111,673 VISX, Inc. * 6,771 156,749 VitalWorks, Inc. * 8,477 37,468 Wright Medical Group, Inc. * 2,861 87,089 Zoll Medical Corp. * (a) 1,670 59,252 ----------------- 4,739,325 HEALTHCARE SERVICES - 1.15% Accredo Health, Inc. * 8,565 270,740 American Healthways, Inc. * (a) 4,700 112,189 AMERIGROUP Corp. * (a) 4,141 176,614 AMN Healthcare Services, Inc. * (a) 2,745 47,104 Cerner Corp. * (a) 5,056 191,370 CorVel Corp. * 1,390 52,264 Covance, Inc. * 10,868 291,262 Cross Country Healthcare Inc. * (a) 3,935 58,710 Eclipsys Corp. * (a) 6,559 76,347 Hooper Holmes, Inc. 11,258 69,574 IMPAC Medical Systems, Inc. * 1,350 34,506 Kindred Healthcare, Inc. * (a) 2,113 109,834 LabOne, Inc. * 1,705 55,361 MedQuist, Inc. * 2,232 35,846 Neighborcare, Inc. * 4,392 86,742 Odyssey Healthcare, Inc. * 5,739 167,923 Pediatrix Medical Group, Inc. * 4,155 228,899 Sierra Health Services, Inc. * (a) 4,117 113,012 The Advisory Board Company * 1,842 64,304 US Physical Therapy, Inc. * (a) 2,647 41,637 Vistacare, Inc. * 2,130 74,870 ----------------- 2,359,108 HOMEBUILDERS - 0.31% Beazer Homes USA, Inc. (a) 2,221 216,903 Champion Enterprises, Inc. * (a) 10,030 70,210 Lyon William Homes * (a) 712 44,692 Meritage Corp. * 1,474 97,741 Palm Harbor Homes, Inc. * (a) 3,504 62,616 Schottenstein Homes, Inc. * 1,755 68,533 Walter Industries, Inc. 5,540 73,959 ----------------- 634,654 HOTELS & RESTAURANTS - 1.59% Alliance Gaming Corp. * 8,647 213,149 Ameristar Casinos, Inc. * (a) 2,088 51,093 Argosy Gaming Corp. * 3,870 100,581 Aztar Corp. * 4,906 110,385 Boca Resorts, Inc., Class A * 4,762 71,240 Boyd Gaming Corp. 5,515 89,012 California Pizza Kitchen, Inc. * 3,152 63,450 CEC Entertainment, Inc. * 4,005 189,797 Chicago Pizza & Brewery, Inc. * 2,563 38,240 Choice Hotels, Inc. 3,405 120,026 CKE Restaurants, Inc. * (a) 9,035 57,734 Dave & Buster's, Inc. * 2,548 32,309 Extended Stay America, Inc. 12,510 181,145 IHOP Corp. 3,394 130,601 Jack In the Box, Inc. * 5,949 127,071 La Quinta Corp. * 25,808 165,429 Landry's Restaurants, Inc. * 3,819 98,225 LaSalle Hotel Properties 4,113 76,296 Lone Star Steakhouse & Saloon, Inc. * 2,516 58,321 Magna Entertainment Corp., Class A * (a) 8,925 45,250
The accompanying notes are an integral part of the financial statements. 236 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- HOTELS & RESTAURANTS - CONTINUED Marcus Corp. * 3,708 $ 60,811 MTR Gaming Group, Inc. * (a) 4,857 50,027 O'Charley's, Inc. * (a) 3,795 68,120 P.F. Chang's China Bistro, Inc. * (a) 4,382 222,956 Panera Bread Company, Class A * (a) 4,916 194,329 Papa Johns International, Inc. * (a) 2,125 70,933 RARE Hospitality International, Inc. * 5,201 127,112 Red Robin Gourmet Burgers, Inc. * 1,747 53,179 Ryan's Family Steak Houses, Inc. * 7,823 118,440 Sonic Corp. * 6,729 206,042 Triarc Companies, Inc., Class B (a) 6,308 68,000 ----------------- 3,259,303 HOUSEHOLD APPLIANCES - 0.26% Bassett Furniture Industries, Inc. * 2,924 48,246 Consolidated Tomoka Land Company 1,427 46,663 Drew Industries, Inc. * 1,327 36,891 Jacuzzi Brands, Inc. * 13,837 98,104 Libbey, Inc. 2,401 68,381 National Presto Industries, Inc. 1,234 44,609 The Toro Company 4,095 190,008 Vialta, Inc. * 19 10 Westpoint Stevens, Inc. * 13,797 248 ----------------- 533,160 HOUSEHOLD PRODUCTS - 0.23% Central Garden & Pet Company * 2,960 82,969 Department 56, Inc. * 2,863 37,505 Kirklands, Inc. * 2,162 38,181 Select Comfort Corp. * 3,695 91,488 Topps, Inc. 6,110 62,689 Tupperware Corp. * 9,192 159,389 ----------------- 472,221 INDUSTRIAL MACHINERY - 1.42% Albany International Corp., Class A 4,694 159,127 Briggs & Stratton Corp. 3,643 245,538 Cascade Corp. 2,017 44,979 Ceradyne Inc. California * (a) 1,494 50,886 Circor International, Inc. 2,534 61,069 Cognex Corp. 6,012 169,779 Dionex Corp. * 2,906 133,734 EnPro Industries, Inc. * 4,219 58,855 Flowserve Corp. * 8,385 175,079 Gardner Denver, Inc. * 3,010 71,849 Gorman Rupp Company 1,980 52,272 IDEX Corp. * 4,726 196,554 Kadant, Inc. * 2,570 55,641 Kennametal, Inc. 5,712 227,052 Lindsay Manufacturing Company 2,390 60,347 Lufkin Industries, Inc. 1,668 48,022 Manitowoc, Inc. 4,770 148,824 NACCO Industries, Inc., Class A 848 75,879 Presstek, Inc. * (a) 6,429 46,739 Quixote Corp. 1,515 36,981 Robbins & Myers, Inc. * 2,240 42,538 Rofin Sinar Technologies, Inc. * 2,120 73,267 Stewart & Stevenson Services, Inc. * 5,364 75,364 Tecumseh Products Company, Class A 2,776 134,442 Tennant Company 1,638 70,925 Tredegar Industries, Inc. * 5,694 88,428 UNOVA, Inc. * 8,218 188,603 Valmont Industries, Inc. 2,856 66,116 Watts Industries, Inc., Class A 1,969 43,712 ----------------- 2,902,601 INDUSTRIALS - 0.12% GrafTech International, Ltd. * 14,992 202,392 Lawson Products, Inc. 1,132 37,560 ----------------- 239,952 INSURANCE - 1.86% 21St Century Insurance Group * 4,415 60,706 Alfa Corp. 6,134 78,883 Allmerica Financial Corp. 9,353 287,792 American Medical Security Group, Inc. * 2,296 51,476 American Physicians Capital, Inc. * 2,107 38,769 Amerus Group Company (a) 6,722 235,068 Argonaut Group, Inc. * 4,908 76,270 Baldwin & Lyons, Inc., Class B 1,850 51,911 CenturyBusiness Services, Inc. * 14,441 64,551 Ceva, Inc. * (a) 3,581 37,242 Citizens, Inc. Class A * 5,874 55,392 CNA Surety Corp. * 3,657 34,778 Commerce Group, Inc. 3,777 149,192 FBL Financial Group, Inc., Class A 2,214 57,121 Financial Industries Corp. 2,586 36,463 Fremont General Corp. (a) 10,766 182,053 Harleysville Group, Inc. 5,646 112,299 Hilb, Rogal and Hamilton Company 5,531 177,379 Horace Mann Educators Corp. 7,277 101,660 Infinity Property & Casualty Corp. (a) 2,248 74,296 Landamerica Financial Group, Inc. 3,063 160,072 Liberty Corp. 2,699 121,968 National Western Life Insurance Company, Class A * 376 58,224 Navigators Group, Inc. * 1,161 35,840 Ohio Casualty Corp. * 9,858 171,135 Philadelphia Consolidated Holding Corp. * 2,749 134,234 Phoenix Companies, Inc. (a) 17,049 205,270 Presidential Life Corp. * 4,312 56,746 ProAssurance Corp. * 4,204 135,159 RLI Corp. 3,105 116,313 Safety Insurance Group Inc. 2,243 38,378 Selective Insurance Group, Inc. 4,720 152,739 State Auto Financial Corp. 2,381 55,692 Stewart Information Services Corp. 2,866 116,216 UICI * 6,910 91,765 United Fire & Casualty Company 1,366 55,132 United States I Holdings Corp. * 4,370 57,029 Universal American Financial Corp. * 4,618 45,764 Zenith National Insurance Corp. * (a) 1,466 47,718 ----------------- 3,818,695 INTERNET CONTENT - 0.47% Alloy, Inc. * (a) 7,657 39,893 Ask Jeeves, Inc. * (a) 6,791 123,053 Autobytel, Inc. * 6,531 59,301 CMGI, Inc. * 68,374 121,706 CNET Networks, Inc. * 18,646 127,166 Harris Interactive, Inc. * 8,569 71,123 InfoSpace, Inc. * 4,670 107,643 NetFlix, Inc. * (a) 1,930 105,552 ProQuest Company * (a) 4,304 126,753 Safeguard Scientifics, Inc. * 22,603 91,316 ----------------- 973,506 INTERNET RETAIL - 0.17% 1-800-Flowers.com, Inc. * 4,013 44,384 FreeMarkets, Inc. * 7,850 52,517 NetIQ Corp. * 9,930 131,572 Priceline.com, Inc. * (a) 3,855 69,004 Stamps.com, Inc. * 8,264 51,237 ----------------- 348,714
The accompanying notes are an integral part of the financial statements. 237 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- INTERNET SERVICE PROVIDER - 0.32% Earthlink, Inc. * 21,413 $ 214,130 eSPEED, Inc., Class A * 4,341 101,623 HomeStore.com, Inc. * (a) 16,972 80,278 Net2Phone, Inc. * 6,382 43,398 Register.com, Inc. * 7,833 41,123 TriZetto Group, Inc. * 6,658 42,944 United Online, Inc. * (a) 7,779 130,609 ----------------- 654,105 INTERNET SOFTWARE - 1.29% Agile Software Corp. * 8,280 81,972 Akamai Technologies, Inc. * 18,538 199,284 Ariba, Inc. * 49,294 147,882 Digital River, Inc. * 4,988 110,235 E.piphany, Inc. * 10,726 77,334 eResearch Technology, Inc. * (a) 4,827 122,702 F5 Networks, Inc. * 5,007 125,676 Internet Security Systems, Inc. * 6,858 129,136 Interwoven, Inc. * 4,997 63,162 Keynote Systems, Inc. * (a) 3,492 41,555 Lionbridge Technologies, Inc. * 5,960 57,276 Matrixone, Inc. * 9,036 55,662 Netegrity, Inc. * 5,008 51,633 NIC, Inc. * 5,841 46,903 Openwave Systems, Inc. * 11,013 121,143 PC-Tel, Inc. * 4,438 47,087 Portal Software, Inc. * 5,901 39,714 Retek, Inc. * 10,197 94,628 RSA Security, Inc. * (a) 8,647 122,787 S1 Corp. * 13,602 109,496 Safenet Inc. * 2,035 62,617 Sapient Corp. * 14,515 81,284 Sonicblue, Inc. * 19,813 16 Stellent, Inc. * 3,904 38,415 Supportsoft Inc. * 5,502 72,351 TIBCO Software, Inc. * 15,877 107,487 Verity, Inc. * 4,036 67,361 Verso Technologies, Inc. * (a) 21,405 68,496 Vignette Corp. * 39,209 89,004 Watchguard Technologies, Inc. * 7,230 42,079 WebEx Communications, Inc. * (a) 4,543 91,314 WebMethods, Inc. * 8,817 80,676 ----------------- 2,646,367 INVESTMENT COMPANIES - 0.12% Gabelli Asset Management, Inc., Class A (a) 1,281 50,984 Gladstone Capital Corp. 2,169 48,477 MCG Capital Corp. 4,845 94,478 Soundview Technology Group, Inc. * 3,382 52,387 ----------------- 246,326 LEISURE TIME - 1.15% 4Kids Entertainment, Inc. * (a) 2,337 60,809 Action Performance Companies, Inc. (a) 2,943 57,683 AMC Entertainment, Inc. * 5,787 88,020 Arctic Cat, Inc. (a) 2,827 69,827 Bally Total Fitness Holding Corp. * (a) 6,755 47,285 Callaway Golf Company 11,698 197,111 Churchill Downs, Inc. * 1,301 47,098 Gaylord Entertainment Company * 2,274 67,879 Handleman Company (a) 4,303 88,341 Hollywood Entertainment Corp. * 9,567 131,546 Isle of Capri Casinos, Inc. * (a) 2,830 60,760 K2, Inc. * (a) 4,624 70,331 Movie Gallery, Inc. (a) 4,563 85,237 Multimedia Games, Inc. * (a) 1,937 79,611 Penn National Gaming, Inc. * 5,425 125,209 Pinnacle Entertainment, Inc. * 4,539 42,304 Rc2 Corp. * (a) 2,628 54,531 Scientific Games Corp., Class A * 8,914 151,627 SCP Pool Corp. * 5,334 174,315 Shuffle Master, Inc. * (a) 2,994 103,652 Six Flags, Inc. * 17,125 128,780 Speedway Motorsports, Inc. 2,521 72,907 Sturm Ruger & Company, Inc. 4,609 52,404 The Nautilus Group, Inc. 5,307 74,563 Vail Resorts, Inc. * (a) 3,732 63,444 West Marine, Inc. * (a) 2,320 64,519 WMS Industries, Inc. * (a) 4,034 105,691 ----------------- 2,365,484 LIFE SCIENCES - 0.09% Incyte Corp. * 13,389 91,581 Symyx Technologies, Inc. * 4,344 89,269 ----------------- 180,850 LIQUOR - 0.02% Central European Distribution Corp. * (a) 1,329 41,996 ----------------- MANUFACTURING - 0.79% Actuant Corp., Class A * 3,753 135,859 Acuity Brands, Inc. * 7,250 187,050 Armor Holdings, Inc. * 3,739 98,373 Barnes Group, Inc. 1,986 64,168 Cuno, Inc. * 2,668 120,140 Esco Technologies, Inc. * 2,062 90,006 Hexcel Corp. * 5,079 37,635 Kaydon Corp. * 4,593 118,683 Lydall, Inc. * 3,414 34,789 Mine Safety Appliances Company 1,144 90,959 Nordson Corp. 4,622 159,598 Raven Industries, Inc. 1,347 39,736 Shaw Group, Inc. * (a) 10,387 141,471 Thomas Industries, Inc. 1,671 57,917 York International Corp. 6,856 252,301 ----------------- 1,628,685 MEDICAL-HOSPITALS - 0.68% AmSurg Corp. * (a) 3,207 121,513 Bioreliance Corp. * 1,007 48,155 Centene Corp. * (a) 3,139 87,923 Cepheid, Inc. * 6,053 57,988 Laserscope * (a) 2,665 41,547 Lifepoint Hospitals, Inc. * 6,679 196,697 Per-Se Technologies, Inc. * 5,166 78,833 Possis Medical, Inc. * 3,102 61,265 Province Healthcare Company * (a) 8,399 134,384 PSS World Medical, Inc. * 12,446 150,223 Rehabcare Group, Inc. * (a) 3,061 65,077 Select Medical Corp. 8,138 132,487 STAAR Surgical Company * (a) 3,890 43,801 VCA Antech, Inc. * 5,444 168,655 ----------------- 1,388,548 METAL & METAL PRODUCTS - 0.45% Commercial Metals Company * 4,432 134,733 Crown Holdings, Inc. * 29,632 268,466 Matthews International Corp., Class A 5,025 148,690 Mueller Industry, Inc. * 6,021 206,881
The accompanying notes are an integral part of the financial statements. 238 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- METAL & METAL PRODUCTS - CONTINUED Precision Castparts Corp. 504 $ 22,887 Quanex Corp. 2,849 131,339 ----------------- 912,996 MINING - 0.69% Brush Wellman, Inc. * 2,939 44,996 Cleveland-Cliffs, Inc. * 1,705 86,870 Coeur d'Alene Mines Corp. * 36,818 212,808 Hecla Mining Company * (a) 19,493 161,597 Joy Global, Inc. 8,504 222,380 Lincoln Electric Holding, Inc. * 5,496 135,971 Penn Virginia Corp. 1,283 71,399 RTI International Metals, Inc. * 3,843 64,831 Stillwater Mining Company * 8,405 80,436 Terex Corp. * 7,678 218,669 USEC, Inc. 14,758 123,967 ----------------- 1,423,924 MOBILE HOMES - 0.15% Coachmen Industries, Inc. 2,814 50,961 Fleetwood Enterprises, Inc. * (a) 7,268 74,570 Skyline Corp. * 1,282 44,703 Winnebago Industries, Inc. (a) 2,029 139,494 ----------------- 309,728 NEWSPAPERS - 0.06% Journal Register Company * 5,595 115,816 ----------------- OFFICE FURNISHINGS & SUPPLIES - 0.22% Global Imaging Systems, Inc. * 2,553 81,058 Imagistics International, Inc. * 2,649 99,337 Office Max, Inc. * 695 6,477 The Standard Register Company * (a) 2,607 43,876 United Stationers, Inc. * 5,287 216,344 ----------------- 447,092 PAPER - 0.43% Buckeye Technologies, Inc. * 5,226 52,521 Chesapeake Corp. * 2,533 67,074 Louisiana-Pacific Corp. * 18,380 328,634 P.H. Glatfelter Company 5,042 62,773 Pope & Talbot, Inc. (a) 3,292 57,972 Potlatch Corp. (a) 4,451 154,761 Rock-Tenn Company, Class A 4,353 75,133 Wausau-Mosinee Paper Corp. * 6,569 88,813 ----------------- 887,681 PETROLEUM SERVICES - 0.61% Atwood Oceanics, Inc. * 1,371 43,790 Cal Dive International, Inc. * 6,273 151,242 Grey Wolf, Inc. * 30,800 115,192 Gulfmark Offshore, Inc. * (a) 3,106 43,484 Lone Star Technologies, Inc. * 4,829 77,167 Newpark Resources, Inc. * (a) 13,889 66,528 Oceaneering International, Inc. * 3,989 111,692 Petroleum Development Corp. * 3,110 73,707 SEACOR SMIT, Inc. * 2,967 124,703 Superior Energy Services, Inc. * 8,757 82,316 Tesoro Petroleum Corp. * 10,450 152,257 Universal Compression Holdings, Inc. * 2,889 75,576 Veritas DGC, Inc. * 5,854 61,350 W-H Energy Services, Inc. * 3,867 62,645 ----------------- 1,241,649 PHARMACEUTICALS - 1.44% aaiPharma, Inc. * (a) 2,664 66,920 Abgenix, Inc. *, 15,869 197,728 Able Laboratories, Inc. * (a) 3,021 54,589 Adolor Corp. * 6,852 137,177 Alexion Pharmaceuticals, Inc. * (a) 3,683 62,685 Alkermes, Inc. * (a) 11,546 155,871 Bentley Pharmaceuticals, Inc. * 2,968 39,474 CIMA Laboratories, Inc. * (a) 2,617 85,367 Connetics Corp. * 5,180 94,069 Cubist Pharmaceuticals, Inc. * (a) 7,254 88,209 First Horizon Pharmaceutical Corp. * 4,101 45,931 Genta, Inc. * (a) 8,669 90,244 Indevus Pharmaceuticals, Inc. * (a) 7,636 44,976 Inspire Pharmaceuticals, Inc. * 5,103 72,258 Isis Pharmaceuticals, Inc. * (a) 8,863 57,609 Ligand Pharmaceuticals, Inc., Class B * (a) 10,878 159,798 Nabi Biopharmaceuticals * (a) 8,039 102,176 Noven Pharmaceuticals, Inc. * 4,151 63,137 NPS Pharmaceuticals, Inc. * (a) 5,305 163,076 Nuvelo, Inc. * (a) 9,589 33,274 Onyx Pharmaceuticals, Inc. * (a) 5,242 147,982 OSI Pharmaceuticals, Inc. * (a) 6,940 223,537 Penwest Pharmaceuticals Company * (a) 3,279 56,661 Peregrine Pharmaceuticals, Inc. * (a) 22,448 49,610 Pozen, Inc. * 4,372 44,594 Regeneron Pharmaceuticals, Inc. * (a) 6,374 93,761 Salix Pharmaceuticals, Ltd. * 3,398 77,033 SciClone Pharmaceuticals, Inc. * (a) 8,753 59,345 United Therapeutics Corp. * (a) 3,224 73,991 Vertex Pharmaceuticals, Inc. * 14,172 144,980 Vicuron Phamaceuticals, Inc. * 8,410 156,846 ----------------- 2,942,908 PHOTOGRAPHY - 0.04% Concord Camera Corp. * 5,052 46,731 CPI Corp. 1,969 39,793 ----------------- 86,524 PLASTICS - 0.05% Spartech Corp. 4,139 101,985 ----------------- PUBLISHING - 0.33% American Greetings Corp., Class A * 10,805 236,305 Consolidated Graphics, Inc. * 2,159 68,181 Courier Corp. 1,177 45,281 Hollinger International, Inc., Class A * 7,822 122,180 Nelson Thomas, Inc. 1,885 36,437 Playboy Enterprises, Inc., Class B * 3,069 49,595 PRIMEDIA, Inc. * 28,745 81,348 Pulitzer, Inc. * 721 38,934 ----------------- 678,261 RAILROADS & EQUIPMENT - 0.30% Florida East Coast Indiana, Inc. 2,588 85,663 GATX Corp. (a) 7,226 202,183 Genesee & Wyoming, Inc., Class A * 2,413 76,010 Kansas City Southern * 10,888 155,916 Wabtec Corp. 5,702 97,162 ----------------- 616,934 REAL ESTATE - 4.21% Acadia Realty Trust, REIT 4,195 52,437 Alexander's, Inc., REIT * 410 51,111 Alexandria Real Estate Equities, Inc. 3,174 183,775 American Home Mortgage Investment Corp., REIT (a) 2,167 48,779 American Land Lease, Inc. 2,542 50,713
The accompanying notes are an integral part of the financial statements. 239 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- REAL ESTATE - CONTINUED American Mortgage Acceptance Company * 2,769 $ 45,135 Amli Residential Properties Trust, REIT 2,719 72,869 Anthracite Capital, Inc., REIT 9,060 100,294 Anworth Mortgage Asset Corp., REIT 6,533 91,005 Associated Estates Realty Corp., REIT * 7,336 53,626 Avatar Holdings, Inc. * 1,200 44,328 Bedford Property Investments, Inc. 2,215 63,415 Boykin Lodging Company, REIT * 5,597 51,213 Brandywine Realty Trust, REIT * 4,530 121,268 Brookfield Homes Corp. (a) 2,720 70,094 BRT Realty Trust, REIT 1,739 50,170 Capital Automotive, REIT 4,190 134,080 Capstead Mortage Corp., REIT (a) 2,168 36,379 Colonial Properties Trust SBI 2,688 106,445 Commercial Net Lease Realty, REIT 7,032 125,170 Cornerstone Realty Income Trust, Inc., REIT 11,797 103,342 Corporate Office Properties Trust, REIT 5,063 106,323 Correctional Properties Trust, REIT 2,067 59,530 Corrections Corp. of America * 6,199 178,717 EastGroup Properties, Inc., REIT 2,890 93,578 Entertainment Properties Trust, REIT 3,236 112,322 Equity Inns, Inc., REIT * 7,990 72,309 Equity One, Inc. 5,083 85,801 Essex Property Trust, REIT 2,783 178,724 Felcor Lodging Trust, Inc., REIT 9,720 107,698 First Industrial Realty Trust, Inc., REIT * 6,086 205,402 Gables Residential Trust, REIT * 4,481 155,670 Getty Realty Corp., REIT 2,697 70,526 Glenborough Realty Trust, Inc., REIT 3,265 65,137 Glimcher Realty Trust * 5,313 118,905 Great Lakes REIT, Inc., REIT * 3,820 59,974 Health Care REIT, Inc. 7,894 284,184 Heritage Property Investment Trust, Inc., REIT * 2,883 82,021 Highwoods Properties, Inc., REIT 8,409 213,589 Home Properties Inc., REIT 4,868 196,618 Innkeepers USA Trust, REIT 5,834 48,831 Jones Lang Lasalle, Inc. * 5,835 120,959 Kilroy Realty Corp., REIT * 4,369 143,085 Koger Equity, Inc. * 3,531 73,904 Kramont Realty Trust, REIT * 4,409 79,803 Lexington Corporate Property Trust, REIT 6,109 123,341 LTC Properties, Inc., REIT 3,408 50,234 Manufactured Home Communities, Inc. 2,343 88,214 MeriStar Hospitality Corp., REIT 11,307 73,609 MFA Mortgage Investments, Inc., REIT 10,066 98,143 Mid-America Apartment Communities, Inc. * 2,562 86,032 Mission West Properties, Inc. * 4,866 63,015 National Health Investments, Inc., REIT 3,816 94,942 Nationwide Health Properties, Inc., REIT 9,969 194,894 Newcastle Investment Corp., REIT 3,758 101,842 Novastar Financial, Inc. (a) 1,762 75,695 Parkway Properties, Inc. 1,712 71,219 Pennsylvania Real Estate Investment Trust, REIT 4,871 176,817 Post Properties, Inc., REIT 5,276 147,306 Prentiss Properties Trust, REIT * 5,159 170,195 PS Business Parks, Inc., REIT 2,233 92,134 RAIT Investment Trust, REIT 3,138 80,333 Ramco Gershenson Properties Trust, REIT * 2,189 61,949 Reckson Associates Realty Corp., REIT 7,951 193,209 Redwood Trust, Inc., REIT 2,187 111,209 Saul Centers, Inc. * 2,202 63,131 Senior Housing Properties Trust, SBI * 7,975 137,409 Sizeler Property Investors, Inc., REIT 6,232 66,745 SL Green Realty Corp., REIT 5,036 206,728 Sovran Self Storage, Inc. 2,289 85,036 Summit Properties, Inc., REIT * 4,584 110,108 Sun Communities, Inc., REIT 2,385 92,299 Tanger Factory Outlet Centers, Inc., REIT 1,339 54,497 Taubman Centers, Inc., REIT 7,523 154,974 Town & Country Trust SBI 2,835 71,867 Trammell Crow Company * 5,930 78,572 United Mobile Homes, Inc. 2,691 45,774 United States Restaurant Properties, Inc. * 4,715 80,344 Universal Health Realty Income Trust 2,176 65,498 Urstadt Biddle Properties, Inc. 5,546 78,476 Ventas, Inc., REIT 12,910 284,020 Washington REIT, REIT 6,168 180,106 Winston Hotels, Inc., REIT * 5,194 52,979 ----------- 8,632,153 RETAIL GROCERY - 0.30% 7 Eleven, Inc. * 4,398 70,588 Arden Group, Inc. 515 39,913 Ingles Markets, Inc. * 4,101 42,117 Nash-Finch Company 2,348 52,454 Pathmark Stores, Inc. * 6,222 47,287 Ruddick Corp. 5,870 105,073 United Natural Foods, Inc. * 3,495 125,505 Weis Markets, Inc. 1,916 69,551 Wild Oats Markets, Inc. * 5,162 66,745 ----------- 619,233 RETAIL TRADE - 3.67% A.C. Moore Arts & Crafts, Inc. * 2,481 47,784 Aaron Rents, Inc., Class B 4,220 84,949 Aeropostale, Inc. * 3,686 101,070 American Eagle Outfitters, Inc. * 9,473 155,357 AnnTaylor Stores Corp. * 7,898 308,022 Asbury Automotive Group, Inc. * 2,277 40,781 Big 5 Sporting Goods Corp. * 2,574 53,925 BJ's Wholesale Club, Inc. * 12,368 283,969 Blair Corp. 1,655 40,283 Bombay Company, Inc. * (a) 6,412 52,194 Brookstone, Inc. * 2,473 52,700 Building Materials Holding Corp. 2,866 44,509 Burlington Coat Factory Warehouse Corp. 3,551 75,139 Casey's General Stores, Inc. 8,053 142,216 Cash America International, Inc. 5,114 108,314 Casual Male Retail Group, Inc. * (a) 6,235 43,271 Cato Corp., Class A 3,334 68,347 Charlotte Russe Holding, Inc. * (a) 2,618 36,285 Charming Shoppes, Inc. * 19,456 105,062 Childrens Place Retail Stores, Inc. * (a) 2,394 63,992 Christopher & Banks Corp. 6,382 124,640 Coldwater Creek, Inc. * 2,674 29,414 Cole National Corp., Class A * 2,309 46,180 Cost Plus, Inc. * 3,893 159,613 Daisytek International Corp. * 2,169 35 Dicks Sporting Goods, Inc. * (a) 2,278 110,847 Dillard's, Inc., Class A * 11,076 182,311 Electronics Boutique Holdings Corp. * (a) 2,621 59,995 Finish Line, Inc. * 3,164 94,825 Fossil, Inc. * 4,391 122,992 Fred's, Inc., Class A 6,924 214,505 GameStop Corp. * (a) 4,156 64,044
The accompanying notes are an integral part of the financial statements. 240 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- RETAIL TRADE - CONTINUED Genesco, Inc. * (a) 4,135 $ 62,563 Group 1 Automotive, Inc. * (a) 2,988 108,136 Guitar Center, Inc. * 2,515 81,939 Hancock Fabrics, Inc. 3,063 44,352 Haverty Furniture Companies, Inc. 3,034 60,255 Hibbett Sporting Goods, Inc. * 2,153 64,159 Hot Topic, Inc. * 8,419 248,024 Intertan, Inc. * 4,553 46,076 J. Jill Group, Inc. * 3,678 46,747 Jo Ann Stores, Inc. * 3,154 64,342 Kenneth Cole Productions, Inc., Class A 1,215 35,721 Linens'n Things, Inc. * 7,891 237,361 Longs Drug Stores Corp. * (a) 5,432 134,388 NBTY, Inc. * 9,205 247,246 Pacific Sunwear of California, Inc. * 12,572 265,521 Party City Corp. * 2,527 32,068 Payless ShoeSource, Inc. * 12,317 165,048 Pep Boys - Manny, Moe & Jack * 8,609 196,888 Petco Animal Supplies Inc. * 6,437 196,007 School Specialty, Inc. * (a) 2,952 100,397 Sharper Image Corp. * (a) 1,783 58,215 Shopko Stores, Inc. * (a) 5,206 79,391 Sonic Automative, Inc. 4,956 113,591 Sports Authority, Inc. * 3,660 140,544 Stein Mart, Inc. * 4,575 37,698 Steven Madden, Ltd. * 2,145 43,758 The Dress Barn, Inc. * 3,937 59,016 The Men's Wearhouse, Inc. * 6,274 156,913 The Wet Seal, Inc., Class A * 4,766 47,136 The Yankee Candle, Inc. * 5,127 140,121 Too, Inc. * 6,391 107,880 Tractor Supply Company * 5,225 203,200 Tuesday Morning Corp. * 2,576 77,924 Tweeter Home Entertainment Group, Inc. * (a) 4,806 45,417 United Rentals, Inc. * 9,461 182,219 Urban Outfitters, Inc. * 4,414 163,539 ValueVision Media, Inc., Class A * (a) 3,437 57,398 Zale Corp. * 4,579 243,603 ----------- 7,512,371 SANITARY SERVICES - 0.21% Casella Waste Systems, Inc., Class A * 2,706 37,045 Darling International, Inc. * 13,006 35,897 Insituform Technologies, Inc., Class A * 4,385 72,352 Ionics, Inc. * (a) 3,099 98,703 Waste Connections, Inc. * 4,693 177,255 ----------- 421,252 SEMICONDUCTORS - 2.81% Actel Corp. *, 3,906 94,135 Advanced Energy Industries, Inc. * 3,119 81,250 Alliance Semiconductor Corp. * 4,679 33,268 Asyst Technologies, Inc. * 8,290 143,832 ATMI, Inc. * (a) 4,852 112,275 Axcelis Technologies, Inc. * 17,808 181,998 ChiPAC, Inc., Class A * (a) 8,811 66,875 Cirrus Logic, Inc. * 12,777 98,000 Conexant Systems, Inc. * (a) 47,677 236,955 Credence Systems Corp. * 11,414 150,208 Cymer, Inc. * 6,115 282,452 DSP Group, Inc. * 4,913 122,383 Entegris, Inc. * 9,496 122,024 ESS Technology, Inc. * 5,549 94,388 Exar Corp. * 7,152 122,156 Genesis Microchip, Inc. * 5,697 102,774 GlobespanVirata, Inc. * 21,751 127,896 Intergrated Electrical Services, Inc. * 6,431 59,487 Kopin Corp. * 12,845 86,190 Kulicke & Soffa Industries, Inc. * 8,954 128,759 Lattice Semiconductor Corp. * (a) 18,239 176,553 LTX Corp. * 9,446 141,973 Mattson Technology, Inc. * 5,137 62,774 Micrel, Inc. * 10,055 156,657 Microsemi Corp. * 5,121 125,874 MKS Instruments, Inc. * 4,737 137,373 Monolithic System Technology, Inc. * (a) 4,822 41,228 Mykrolis Corp. * 6,101 98,104 Omnivision Technologies, Inc. * (a) 4,206 232,381 ON Semiconductor Corp. * 6,743 43,492 Pericom Semiconductor Corp. * 4,264 45,454 Photronics, Inc. * 5,160 102,787 Power Integrations, Inc. * 4,545 152,076 Rudolph Technologies, Inc. * 2,203 54,062 Semitool, Inc. * 3,479 37,298 Semtech Corp. * 10,321 234,596 Silicon Image, Inc. * (a) 12,870 93,050 Siliconix, Inc. * 1,041 47,574 Sipex Corp. * 5,139 39,622 Skyworks Solutions, Inc. * (a) 26,576 231,211 Triquint Semiconductor, Inc. * 24,137 170,649 Ultratech, Inc. * 3,583 105,233 Varian Semiconductor Equipment Associates, Inc. * 5,018 219,236 Veeco Instruments, Inc. * 4,121 116,212 Vitesse Semiconductor Corp. * (a) 36,786 215,934 White Electronic Designs Corp. * 4,255 37,444 Xicor, Inc. * 5,028 57,018 Zoran Corp. * 7,317 127,243 ----------- 5,750,413 SHIPBUILDING - 0.02% Maritrans, Inc. 2,350 39,268 ----------- SOFTWARE - 2.56% Activision, Inc. * 15,756 286,759 Advent Software, Inc. * 6,023 104,981 Altiris, Inc. * (a) 1,799 65,628 ANSYS, Inc. * 2,740 108,778 Ascential Software Corp. * 10,496 272,161 AsiaInfo Holdings, Inc. * (a) 6,224 41,576 Aspen Technology, Inc. * (a) 6,780 69,563 Avid Technology, Inc. * 5,301 254,448 BARRA, Inc. * 2,767 98,201 Borland Software Corp. * 13,232 128,747 CCC Information Services Group, Inc. * 2,626 44,379 CIBER, Inc. * 9,341 80,893 Concord Communications, Inc. * (a) 3,178 63,465 Concur Technologies, Inc. * (a) 4,468 43,250 Dendrite International, Inc. * 5,548 86,937 Embarcadero Tech, Inc. * 2,849 45,442 Epicor Software Corp. * (a) 7,075 90,277 EPIQ Systems, Inc. * (a) 2,751 47,125 Exult, Inc. * (a) 6,592 46,935 HPL Technologies, Inc. * (a) 689 165 Hyperion Solutions Corp. * 7,207 217,219 Informatica Corp. * 11,774 121,272
The accompanying notes are an integral part of the financial statements. 241 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- SOFTWARE - CONTINUED InfoUSA, Inc. * 5,907 $ 43,830 Intermediate Telephone, Inc. 3,410 85,182 JDA Software Group, Inc. * 5,275 87,090 Keane, Inc. * 9,513 139,270 Lawson Software Inc. * 8,101 66,671 Macrovision Corp. * 7,452 168,341 Magma Design Automation, Inc. * (a) 4,154 96,954 Manhattan Associates, Inc. * (a) 4,027 111,306 Mantech International Corp. * 2,520 62,874 Manugistics Group, Inc. * (a) 11,556 72,225 MAPICS, Inc. * (a) 3,934 51,496 Micromuse, Inc. * 10,366 71,526 MicroStrategy, Inc. * 1,943 101,969 MRO Software, Inc. * 3,878 52,198 MSC Software Corp. * (a) 4,823 45,577 Neoware Systems, Inc. * (a) 3,052 41,812 NYFIX, Inc. * (a) 5,560 44,202 Omnicell, Inc. * 2,779 45,020 Opnet Technologies, Inc. * 2,409 39,652 Opsware, Inc. * (a) 9,131 67,569 Packeteer, Inc. * 4,258 72,301 Palmsource, Inc. * (a) 1,865 40,638 Parametric Technology Corp. * 40,060 157,837 PDF Solutions, Inc. * (a) 3,251 48,440 Puma Technology, Inc. * (a) 7,667 30,515 Scansoft, Inc. * (a) 14,016 74,565 Secure Computing Corp. * (a) 6,419 114,964 Seebeyond Technology Corp. * 10,178 43,664 Serena Software, Inc. * (a) 4,327 79,401 Softbrands, Inc. * (a) 303 242 Sohu Common, Inc. * 3,089 92,701 SPSS, Inc. * 2,719 48,616 SS&C Technologies, Inc. 1,596 44,608 Take-Two Interactive Software, Inc. * 7,379 212,589 THQ, Inc. * (a) 6,959 117,677 Transaction Systems Architects, Inc., Class A * 6,145 139,061 Websense, Inc. * 3,694 108,013 ------------ 5,238,797 STEEL - 0.51% Alaska Steel Holding Corp. * 18,982 96,808 Allegheny Technologies, Inc. 15,300 202,266 Carpenter Technology Corp. 3,627 107,250 Gibraltar Steel Corp. 1,896 47,684 Reliance Steel & Aluminum Company * 4,318 143,401 Ryerson Tull, Inc. * (a) 4,759 54,491 Schnitzer Steel Industries, Inc. (a) 1,613 97,586 Steel Dynamics, Inc. * (a) 6,738 158,276 Texas Industries, Inc. 3,868 143,116 ------------ 1,050,878 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.87% Aeroflex, Inc. * 10,421 121,822 Andrew Corp. * (a) 26,320 302,943 Applied Signal Technology, Inc. 1,806 41,556 Arris Group, Inc. * (a) 9,902 71,690 Aspect Communications Corp. * 5,582 87,972 At Road, Inc. * (a) 5,493 73,057 Commonwealth Telephone Enterprises, Inc., (CTE) * 3,840 144,960 Commscope, Inc. * 9,203 150,285 Comtech Telecommunications Corp. * (a) 2,449 70,703 Corvis Corp. * 65,360 111,112 CT Communications, Inc. 3,709 50,072 Ditech Communications Corp. * 4,721 90,171 Finisar Corp. * (a) 25,760 80,629 General Communication, Inc. * 8,318 72,367 Golden Telecom, Inc. * (a) 2,344 65,046 Harmonic, Inc. * 12,760 92,510 Inet Technologies, Inc. * 2,931 35,172 Intrado, Inc. * 2,781 61,043 J2 Global Communications, Inc. * (a) 3,068 75,994 KVH Industries, Inc. * (a) 1,829 50,243 Mastec, Inc. * (a) 3,804 56,337 MRV Communications, Inc. * (a) 19,569 73,579 Network Equipment Technologies, Inc. * (a) 4,625 50,875 New Focus, Inc. * 11,049 55,466 Newport Corp. * 6,981 115,396 Plantronics, Inc. * 7,002 228,615 Powerwave Technologies, Inc. * (a) 12,199 93,322 Price Communications Corp. * 7,806 107,176 Proxim Corp., Class A * 25,408 42,431 PTEK Holdings, Inc. * (a) 7,901 69,608 REMEC, Inc. * 10,348 87,027 Shenandoah Telecommunications Company 927 47,518 Sonus Networks, Inc. * 38,522 291,226 Spectralink Corp. 2,898 55,555 Stratex Networks, Inc. * 16,414 69,760 SureWest Communications (a) 2,724 110,104 Symmetricom, Inc. * 7,378 53,712 Tekelec * 9,115 141,738 Terayon Communication Systems, Inc. * 12,275 55,238 Tollgrade Communications, Inc. * (a) 2,633 46,157 Touch America Holdings, Inc. * 24,207 290 Viasat, Inc. * 3,806 72,847 Westell Technologies, Inc., Class A * 8,230 51,931 Wiltel Communications Group * 4,264 0 ------------ 3,825,255 TELEPHONE - 0.25% Cincinnati Bell, Inc. * 34,421 173,826 D&E Communications, Inc. 3,158 45,823 Hickory Tech Corp. * 3,761 43,063 North Pittsburgh Systems, Inc. * 3,093 58,489 Primus Telecommunications Group, Inc. * (a) 8,897 90,571 TALK America Holdings, Inc. * (a) 5,015 57,773 Warwick Valley Telephone Company 1,437 42,521 ------------ 512,066 TIRES & RUBBER - 0.28% Bandag, Inc. 2,048 84,378 Cooper Tire & Rubber Company 11,311 241,829 Goodyear Tire & Rubber Company * (a) 27,149 213,391 Myers Indiana, Inc. * 3,615 43,814 ------------ 583,412 TOBACCO - 0.20% Dimon, Inc. 7,985 53,899 Schweitzer Mauduit International, Inc. 2,428 72,306 Standard Commercial Corp. 1,968 39,498 Universal Corp. 4,026 177,828 Vector Group, Ltd. (a) 4,189 68,364 ------------ 411,895
The accompanying notes are an integral part of the financial statements. 242 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- TOYS, AMUSEMENTS & SPORTING GOODS - 0.06% Jakks Pacific, Inc. * (a) 4,820 $ 63,431 Russ Berrie & Company, Inc. 1,674 56,749 ----------------- 120,180 TRANSPORTATION - 0.54% Alexander & Baldwin, Inc. 6,943 233,910 Heartland Express, Inc. 5,356 129,562 Kirby Corp. * 3,314 115,592 Offshore Logistics, Inc. * 3,287 80,597 Overseas Shipholding Group, Inc. 2,685 91,424 Pacer International, Inc. * 4,152 83,953 RailAmerica, Inc. * (a) 5,857 69,113 SCS Transportation, Inc. * 2,872 50,490 Yellow Roadway Corp. * (a) 7,171 259,384 ----------------- 1,114,025 TRAVEL SERVICES - 0.05% Navigant International Inc. * (a) 2,884 39,943 Pegasus Solutions, Inc. * (a) 5,116 53,565 ----------------- 93,508 TRUCKING & FREIGHT - 0.61% Arkansas Best Corp. 3,849 120,820 Covenant Transport, Inc. * 1,805 34,312 EGL, Inc. * 5,859 102,884 Forward Air Corp. * 2,102 57,805 Knight Transportation, Inc. * 4,430 113,629 Landstar Systems, Inc. * 4,814 183,125 Old Dominion Freight Lines, Inc. * 1,953 66,558 Oshkosh Truck Corp. 5,160 263,315 USF Corp. * 4,805 164,283 Wabash National Corp. * (a) 4,557 133,520 ----------------- 1,240,251 TOTAL COMMON STOCK (Cost: $131,941,502) $ 155,909,339 -----------------
PRINCIPAL AMOUNT VALUE ------ ----- SHORT TERM INVESTMENTS - 21.12% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 29,592,018 $ 29,592,018 Federal National Mortgage Association Discount Notes, 1.055% due 01/07/2004 1,800,000 1,799,683 1.06% due 02/18/2004 8,500,000 8,487,987 Series BB, 1.05% due 01/15/2004 2,000,000 1,999,183 United States Treasury Bills, 0.88% due 01/08/2004 **** 1,100,000 1,099,812 0.89% due 01/08/2004 **** 300,000 299,948 ----------------- $ 43,278,631 REPURCHASE AGREEMENTS - 2.81% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at $5,769,224 on 01/02/2004, collateralized by $4,125,000 U.S. Treasury Bonds, 8.500% due 02/15/2020 (valued at $5,891,016, including interest). $ 5,769,000 $ 5,769,000 ----------------- TOTAL INVESTMENTS (SMALL CAP INDEX TRUST) (Cost: $180,989,133) $ 204,956,970 =================
INTERNATIONAL INDEX TRUST
SHARES VALUE ------ ----- COMMON STOCK - 78.46% AUSTRALIA - 3.80% Alumina, Ltd. * 13,123 $ 64,918 Amcor, Ltd. * 10,060 62,567 AMP, Ltd. * (a) 17,632 66,513 Ansell, Ltd. * 2,243 10,893 Aristocrat Leisure, Ltd. * (a) 2,388 3,093 Austrailia Gas Light Company, Ltd. * 5,101 43,132 Australia and New Zealand Bank Group Ltd. * 20,981 279,302 Australian Stock Exchange, Ltd. * (a) 1,311 16,860 BHP Billiton, Ltd. * 43,744 401,503 BHP Steel, Ltd. * 9,229 38,914 Boral, Ltd. * 6,916 26,454 Brambles Industries, Ltd. * (a) 11,480 45,640 Centro Props Group * 6,710 20,108 CFS Gandel Retail Trust * 13,880 14,004 Coca-Cola Amatil, Ltd. * 5,717 26,818 Cochlear, Ltd. * 563 9,097 Coles Myer, Ltd. * (a) 12,639 71,945 Commonwealth Bank of Australia * (a) 14,641 324,655 Commonwealth Property Office Fund * 16,430 14,227 Computershare, Ltd. * 4,926 12,277 CSL, Ltd. * 1,843 24,770 CSR, Ltd. * 9,889 13,775 David Jones, Ltd. * 2,251 2,356 Deutsche Office Trust * 14,906 12,346 Foster's Group Ltd. * 25,387 86,018 Futuris Corp., Ltd. * 6,834 7,667 General Property Trust * 22,880 51,510 Harvey Norman Holding, Ltd. * 5,707 12,805 Iluka Resources, Ltd. * 2,500 8,527 Investa Property Group * 15,352 22,656 James Hardie Industries NV * 5,490 28,440 John Fairfax Holdings, Ltd. * 10,236 27,129 Leighton Holdings * 1,493 13,276 Lend Lease Corp. * 4,246 32,130 Lion Nathan, Ltd. * 3,000 13,644 Macquarie Bank, Ltd. * (a) 2,499 66,911 Macquarie Goodman * 15,874 20,199 Macquarie Infrastructure Group * 21,866 55,978 Mayne Nickless, Ltd. * 8,985 22,055 Mirvac Group * (a) 7,935 25,811 National Australia Bank, Ltd. * 17,545 395,655 Newcrest Mining, Ltd. * 3,890 37,930 News Corp., Ltd. * 17,031 153,754 NRMA Insurance Group, Ltd. * 20,058 64,186 OneSteel, Ltd. * 5,172 7,866 Orica, Ltd. * 3,066 32,227 Origin Energy, Ltd. * 8,130 29,077 PaperlinkX, Ltd. * 4,733 17,747 Patrick Corp., Ltd. * 1,769 19,487 Publishing & Broadcasting, Ltd. * 1,585 14,942 QBE Insurance Group, Ltd. * 7,711 61,544 Rinker Group Ltd. * 10,937 53,939 Rio Tinto, Ltd. * (a) 3,619 101,367 Santos, Ltd. * 6,535 33,804 Sonic Healthcare, Ltd. * 2,854 15,042 Sons Of Gwalia, Ltd. * 670 1,791 Southcorp, Ltd. * (a) 6,901 14,030 Stockland * (a) 13,903 54,644 Suncorp-Metway, Ltd. * 6,181 57,663
The accompanying notes are an integral part of the financial statements. 243 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- AUSTRALIA - CONTINUED Tab, Ltd. * 5,702 $ 19,835 TABCORP Holdings, Ltd. * (a) 4,739 40,071 Telstra Corp. * (a) 25,507 92,571 Toll Holdings, Ltd. * (a) 2,546 15,815 Transurban Group * 5,224 17,543 Wesfarmers, Ltd. * 4,374 87,242 Westfield Holdings, Ltd. * (a) 5,050 53,120 Westfield Trust * 25,433 68,173 Westpac Banking Corp., Ltd. * 20,984 252,641 WMC Resorces, Ltd. * 13,039 55,274 Woodside Petroleum, Ltd. * 5,389 60,053 Woolworths, Ltd. * 11,903 105,756 ----------------- 4,135,712 AUSTRIA - 0.18% Bank Austria Creditanstalt * 469 23,932 Bohler Uddeholm AG * 43 2,901 Erste Bank AG * 359 44,314 Flughafen Wien AG * 119 5,578 Immofinanz Immobiien Anlage AG * 3,481 27,631 Mayr-Melnhof Karton AG * 68 8,165 Oesterreichische Elektrizitaets AG, Class A * 70 8,167 OMV AG * 154 22,911 RHI AG * (a) 94 1,788 Telekom Austria AG * 2,323 28,683 VA Technologie AG * 71 2,291 Voestalpine AG * 284 11,558 Wienerberger Baustoffindustrie AG * 300 8,006 ----------------- 195,925 BELGIUM - 0.83% Agfa Gevaert NV * 1,360 38,726 Barco NV * 120 10,508 Bekaert SA * 198 12,598 Cofinimmo SA * 40 5,554 Colruyt SA * 190 18,289 Compagnie Maritime Belge SA * 42 3,387 Delhaize Group * 828 42,543 Dexia * 7,439 128,032 Electrabel SA * 348 109,265 Fortis * 11,983 240,662 Goupe Bruxelles Lam * 795 44,744 Interbrew * 1,734 46,229 KBC Bancassurance Holding NV * (a) 1,091 50,888 Mobistar SA * 249 13,961 Omega Pharma SA * 277 8,795 SA D'Ieteren Trading NV * 31 6,351 Solvay SA * (a) 744 64,447 UCB SA * 1,078 40,597 Union Miniere SA * 204 14,304 ----------------- 899,880 DENMARK - 0.59% A P Moller- Maersk A/S * 13 93,702 AS Det Ostasiatiske Kompagni * (a) 213 9,298 Bang & Olufsen AS - B Series * 100 4,179 Carlsberg AS, B Shares * (a) 300 13,807 Coloplast AS, Class B * (a) 125 10,681 Danisco AS * 550 24,428 Danske Bank A/S * 5,900 138,261 DSV * 200 8,832 FLS Industries AS, B Shares * 200 2,301 GN Store Nord AS * 2,323 15,054 Group 4 Falck * 800 16,378 H. Lundbeck AS * (a) 938 15,553 ISS International A/S * 500 24,619 Kobenhavn Lufthavne * 70 8,196 NEG Micon AS * (a) 200 3,249 NKT Holding * 100 1,815 Novo Nordisk AS * 2,977 121,141 Novozymes AS, B Shares * 626 22,825 Tele Danmark AS * 1,650 59,465 Topdanmark AS * 300 16,040 Vestas Wind Systems AS * (a) 1,268 20,596 William Demant Holdings * 300 10,127 ----------------- 640,547 FINLAND - 1.32% Amer Group, Ltd. * 300 12,984 Asko Oyj * 300 9,450 Elisa Corporation * 1,650 22,036 Fortum Corp. * 4,000 41,226 KCI Konecranes Oyj * 200 6,955 Kesko Oyj * 700 12,242 Kone Corp. * 420 24,078 Metra Oyj, B Shares * 400 7,660 Metso Oyj * 1,300 15,855 Nokia AB Oyj * 55,955 966,562 Nokian Renkaat Oyj * 100 7,547 Orion, Series B * (a) 500 10,722 Outokumpu Oyj * 1,100 14,927 Pohjola Group PLC * 200 5,342 Rautaruukki Oyj * 800 5,886 Sampo Oyj, A Shares * 3,200 33,061 Stora Enso Oyj-R Shares * 7,259 97,679 TietoEnator Oyj * 901 24,634 UPM-Kymmene Oyj * 6,100 116,208 ----------------- 1,435,054 FRANCE - 7.86% Accor SA * 2,180 98,606 Air France * (a) 917 14,038 Air Liquide SA * 580 102,308 Alcatel SA * (a) 14,207 182,760 Alstom * 2,424 92 Alstom * (a) 3,692 5,815 Alstom Subscription * 122 5 Atos Origin SA * (a) 273 17,439 Autoroutes du Sud de la France * 841 28,186 Aventis SA * 7,916 522,625 AXA * 16,448 351,681 BNP Paribas SA * 9,484 596,513 Bouygues SA * 2,331 81,412 Business Objects SA * (a) 803 27,975 Caisse Nationale du Credit Agricole * 4,214 100,507 Cap Gemini SA * (a) 1,247 55,320 Carrefour * (a) 6,676 366,065 Casino Guich Perrachon SA * (a) 432 41,965 Club Mediterranee SA * 101 3,776 Cnp Assurances * (a) 400 20,804 Compagnie De Sanit Gobain * 3,652 178,578 Compagnie Generale des Etablissements Michelin, Class B* 1,624 74,439 Dassault Systemes SA * (a) 649 29,568 Essilor International * 1,106 57,134 European Aeronautic Defence & Space Company * (a) 3,288 78,090 France Telecom SA * (a) 12,603 359,822 Gecina * 179 26,297 Groupe Danone * 1,435 233,959 Hermes International * 100 19,328 Imerys SA * (a) 94 19,767
The accompanying notes are an integral part of the financial statements. 244 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- FRANCE - CONTINUED Klepierre * 250 $ 15,025 L'Air Liquide SA * 1,168 206,027 L'Oreal SA * 3,948 323,328 Lafarge * 494 43,942 Lafarge SA * (a) 1,944 172,924 Lagardere S.C.A. * 1,433 82,638 LVMH Moet Hennessy * (a) 2,853 207,411 Pechiney SA, Class A * 729 44,547 Pernod-Ricard SA * (a) 611 67,860 Peugeot SA * (a) 2,099 106,843 Pinault-Printemps-Redoute * (a) 794 76,681 Publicis Groupe SA * (a) 1,161 37,594 Renault Regie Nationale SA * 1,992 137,287 Sagem SA * 239 25,581 Sanofi-Synthelabo SA * (a) 4,269 321,110 Schneider Electric SA * 2,406 157,332 Societe BIC SA * (a) 357 16,481 Societe Generale * (a) 3,829 337,704 Societe Television Francaise 1 * (a) 1,417 49,418 Sodexho Alliance * (a) 1,097 33,048 STMicroelectronics NV * 6,821 184,774 Suez SA * (a) 9,349 187,644 Technip SA * 207 22,377 Thales SA * (a) 839 28,172 Thomson SA * (a) 2,761 58,686 Total SA, B Shares * 7,509 1,394,547 Unibail * 458 42,904 Valeo * 867 34,683 Veolia Environnement * (a) 2,814 75,519 Vinci SA * (a) 803 66,421 Vivendi Universal SA * 10,617 257,773 Wanadoo * 4,344 35,576 Zodiac SA * (a) 463 13,569 ----------------- 8,560,300 GERMANY - 5.53% Adidas-Salomon AG * 539 61,324 Aixtron AG * 607 3,633 Allianz AG * 3,353 422,799 Altana AG * 842 50,551 BASF AG * (a) 6,322 355,098 Bayer AG * 7,649 223,780 Bayerische Hypo-Und Vereinsbank AG * 4,240 97,976 Beiersdorf AG * (a) 302 36,605 Celesio AG * (a) 374 18,118 Commerzbank AG * 5,044 98,823 Continental AG * 1,361 51,564 DaimlerChrysler AG * 10,026 467,394 Deutsche Bank AG * (a) 6,108 505,613 Deutsche Boerse AG * 1,233 67,345 Deutsche Lufthansa AG * (a) 2,285 38,147 Deutsche Post AG * 4,561 93,957 Deutsche Telekom AG * 29,354 536,646 Douglas Holding AG * 330 9,164 E.ON AG * 7,257 473,083 Epcos AG * 574 12,945 Fresenius Medical Care AG * (a) 396 28,140 Heidelbergcement AG * 499 21,068 Henkel Kgaa-Vorzug * (a) 685 53,510 Hypo Real Estate * (a) 1,492 37,202 Infineon Technologies AG * (a) 5,447 75,630 Karstadt Quelle AG * 510 12,594 Linde AG * (a) 981 52,778 MAN AG * 1,194 36,180 Merck & Company, Inc. * 544 22,639 Metro AG * (a) 1,690 74,420 MLP AG * (a) 659 12,870 Muenchener Rueckversicherungs-Gesellschaft AG * 1,737 210,362 ProSieben Sat.1 Media AG * 832 13,890 Puma AG * 184 32,456 RWE AG * (a) 4,879 192,841 SAP AG * 2,387 400,449 Schering AG * 1,929 97,582 Siemens AG NPV * (a) 9,338 747,104 Suedzucker AG * 550 10,464 Thyssen Krupp AG * 3,702 73,090 Tui AG * 1,512 31,490 Volkswagen AG * 2,610 145,186 WCM Beteilgungs & Grundbesitz AG * 1,700 2,249 Wella AG * 163 14,427 ----------------- 6,023,186 GREECE - 0.35% Alpha Bank * 1,900 57,358 Attica Enterprises Holding SA * 700 3,546 Bank of Piraeus * 1,600 19,232 Coca Cola Hell Bot * 810 16,880 Commercial Bank of Greece * 700 17,533 Duty Free Shops * 270 5,293 EFG Eurobank Ergas * 2,210 42,770 Folli-Follie SA * 100 2,898 Greek Organization of Football Prognostics * 1,790 25,891 Hellenic Petroleum SA * 1,200 10,523 Hellenic Technodomiki Tev SA * 500 3,150 Hellenic Telecommunications Organization SA * 3,040 40,218 Intracom * 1,100 7,456 National Bank Of Greece * 2,162 56,387 Public Power Corp. * 1,180 29,140 Techniki Olympiaki SA * 600 3,205 Titan Cement Company * 340 13,922 Viohalco * 1,130 7,347 Vodafone Panafon SA * 2,000 15,573 ----------------- 378,322 HONG KONG - 1.25% ASM Pacific Technology, Ltd. * 2,000 8,733 Bank of East Asia * 16,000 49,048 BOC Hong Kong Holdings, Ltd. * (a) 30,000 56,416 Cathay Pacific Airways, Ltd. * (a) 12,000 22,798 Cheung Kong Holdings, Ltd. * (a) 18,000 142,586 Cheung Kong Infrastructure Holdings, Ltd. * 6,000 13,331 CLP Holdings, Ltd. * 20,900 99,335 Esprit Holdings, Ltd. * 7,500 24,923 Giordano International, Ltd. * 20,000 9,209 Hang Lung Properties, Ltd. * (a) 13,000 16,661 Hang Seng Bank, Ltd. * 9,000 118,242 Henderson Land Development * 8,000 35,344 Hong Kong & China Gas Company, Ltd. * 42,490 64,853 Hong Kong Electric Holdings, Ltd. * 16,500 65,245 Hong Kong Exchange & Clearing, Ltd. * 12,000 25,967 Hopewell Highway * 700 136 Hopewell Holdings, Ltd. * 7,000 10,684 Hutchison Whampoa, Ltd. * 24,800 182,077 Hysan Development Company, Ltd. * 6,000 9,274 i-CABLE Communications, Ltd. * 1,200 308
The accompanying notes are an integral part of the financial statements. 245 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- HONG KONG - CONTINUED Johnson Electronic Holdings, Ltd. * 18,000 $ 22,837 Li & Fung, Ltd. * 18,000 30,836 MTR Corp. * (a) 15,500 20,464 New World Development Company * (a) 19,000 15,295 PCCW Ltd. * (a) 36,984 24,057 Shangri-La Asia, Ltd. * (a) 12,000 11,129 Sino Land Company, Ltd. * (a) 16,000 9,119 Smartone Telecommunications Holdings, Ltd. * 5,000 5,120 South China Morning Post, Ltd. * 10,000 4,412 Sun Hung Kai Properties, Ltd. * 15,000 123,652 Swire Pacific, Ltd., Class A * 11,000 67,725 Techtronic Industries Company, Ltd. * 5,500 15,231 Television Broadcast, Ltd. * 3,000 15,147 Texwinca Holdings, Ltd. * (a) 8,000 5,822 Wharf Holdings Ltd. * 14,000 38,770 ---------- 1,364,786 IRELAND - 0.58% Allied Irish Banks PLC * 3,649 58,389 Allied Irish Banks PLC - London * 6,345 101,129 Bank of Ireland * 10,930 149,005 Bank of Ireland - London * 405 5,511 CRH PLC * 1,944 39,875 CRH PLC - London * 4,171 85,398 DCC PLC * 627 8,548 DCC PLC-GBP * 400 5,443 Elan Corp. * 4,143 28,501 Fyffes * 4,000 8,316 Grafton Group * 2,000 13,784 Greencore Group * 1,069 4,704 Greencore Group PLC * 1,300 5,815 Independent News & Media * 6,463 14,983 Independent News & Media PLC * 520 1,232 Irish Life & Permanent PLC * 3,142 50,672 Kerry Group * 815 15,300 Kerry Group PLC * 800 14,817 Ryanair Holdings PLC * 1,939 16,124 Waterford Wedgewood * 700 194 Waterford Wedgewood PLC * 8,769 2,465 ---------- 630,205 ITALY - 2.90% Alleanza Assicuraz * (a) 5,390 58,947 Assicurazioni Generali SPA * (a) 11,175 295,679 Autogrill SPA * 1,307 18,674 Banca Fideuram SPA * (a) 3,445 20,444 Banca Intesa SPA * (a) 41,262 161,163 Banca Intesa SPA - Non convertible * 11,151 31,893 Banca Monte dei Paschi Siena SPA * (a) 12,639 39,891 Banca Naz Del Lavoro * (a) 17,775 42,440 Banca Popolare di Milano * 4,533 29,642 Banco Popolare Di Verona e Novara * 4,267 72,149 Benetton Group SPA * (a) 631 7,243 Bulgari SPA * (a) 1,750 16,206 Capitalia SPA * 14,103 41,224 Enel SPA * (a) 28,367 192,644 Eni SPA * (a) 30,411 573,213 Fiat SPA - DI RISP (Non Convertible) * 680 3,436 Fiat SPA - EUR * (a) 4,217 32,304 Finecogroup SPA * (a) 17,785 12,526 Finmeccanica SPA * 68,235 53,389 Gruppo Editoriale L'Espresso SPA * (a) 1,900 11,826 Italcementi SPA * (a) 854 10,642 Luxottica Group SPA * 1,621 27,981 Mediaset SPA * (a) 6,979 82,832 Mediobanca SPA * (a) 5,396 58,469 Mediolanum SPA * (a) 2,775 21,852 Mondadori (Arnoldo) Editore SPA * 1,400 12,541 Parmalat Finanziaria SPA * (a) 4,047 561 Pirelli & Co SPA * (a) 20,319 20,660 RAS SPA * (a) 3,513 59,754 San Paolo-IMI SPA * (a) 11,816 153,937 Seat Pagine Gialle * (a) 38,084 36,228 Snam Rete Gas SPA * 10,081 42,677 Snia SPA * 3,000 7,446 Telecom Italia * 74,975 152,561 Telecom Italia Media * (a) 14,446 7,171 Telecom Italia Mobile SPA * 44,093 239,442 Telecom Italia SPA * (a) 84,977 251,607 Tiscali SPA * (a) 2,417 16,871 UniCredito Italiano SPA * (a) 44,136 238,007 ---------- 3,156,172 JAPAN - 16.78% Acom Company * 840 38,105 Aderans Company, Ltd. * 400 6,455 Advantest Corp. * 800 63,471 Aeon Credit Service Company, Ltd. * (a) 300 12,797 Aiful Corp. * 500 36,589 Ajinomoto Company, Inc. * (a) 6,000 69,053 All Nippon Airways Company, Ltd. * 5,000 12,368 Alps Electric Company * 2,000 29,271 Amada Company, Ltd. * 3,000 15,625 Anritsu Corp. * 1,000 6,674 Aoyama Trading Company * 600 11,873 Ariake Japan Company, Ltd. * 200 6,366 Asahi Breweries, Ltd. * (a) 4,500 41,037 Asahi Glass Company * (a) 9,000 73,925 Asahi Kasei Corp. * 14,000 76,054 ASATSU-DK, Inc. * (a) 300 7,729 Ashikaga Financial Group, Inc. * 9,000 252 Autobacs Seven Company * (a) 400 9,203 Bandai Company * (a) 800 20,161 Bellsystem24, Inc. * 30 6,132 Benesse Corp. * 800 19,527 Bridgestone Corp. * (a) 8,000 107,603 Canon, Inc. * 10,000 465,768 Capcom Company, Ltd. * (a) 300 3,696 Casio Computer Company, Ltd. * (a) 2,000 21,170 Central Glass Company * 2,000 12,620 Central Japan Railway Company * 11 95,076 Chichibu Onoda Cement * 10,000 28,282 Chubu Electric Power Company, Inc. * 7,300 152,289 Chugai Pharmaceutical Company, Ltd. * 3,200 46,028 Citizen Watch Company, Ltd. * (a) 3,000 27,582 Coca-Cola West Japan Company, Ltd. * (a) 400 7,841 Comsys Holdings * 1,000 6,403 Credit Saison Company, Ltd. * 1,600 36,141 CSK Corp. * 700 25,286 Dai Nippon Printing Company, Ltd. * 7,000 98,334 Daicel Chemical Industries, Ltd. * 3,000 12,377 Daido Life Insurance Company, Ltd. * 14 41,686 Daiei, Inc. * 2,000 3,566 Daiichi Pharmaceutical Company, Ltd. * 2,800 50,467 Daikin Industries, Ltd. * 2,000 46,203 Daimaru, Inc. * 3,000 16,661 Dainippon Ink & Chemicals, Inc. * 8,000 15,233
The accompanying notes are an integral part of the financial statements. 246 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ --------- JAPAN - CONTINUED Dainippon Screen Manufacturing Company, Ltd. * (a) 2,000 $ 13,684 Daito Trust Construction Company * 1,100 32,650 Daiwa House Industry Company, Ltd. * 5,000 53,204 Daiwa Securities Group, Inc. * 14,000 95,263 Denki Kagaku Kogyo Kabushiki Kaisha * 5,000 16,101 Denso Corp. * 5,700 112,260 Dentsu, Inc. * 3 15,121 Dowa Mining Company, Ltd. * 3,000 16,129 East Japan Railway * 40 188,547 Ebara Corp. * 3,000 13,049 Eisai Company * 2,600 70,136 Familymart Company, Ltd. * 800 18,220 Fanuc, Ltd. * 1,400 83,894 Fast Retailing Company * 600 36,459 Fuji Electric Holdings * 7,000 15,354 Fuji Photo Film Company, Ltd. * (a) 5,000 161,479 Fuji Television Network, Inc. * 3 16,241 Fujikura, Ltd. * 4,000 23,596 Fujisawa Pharmaceutical Company, Ltd. * (a) 3,000 63,985 Fujitsu, Ltd. * 19,000 112,083 Furukawa Electric Company, Ltd. * (a) 7,000 23,260 Gunma Bank * (a) 4,000 17,884 Gunze, Ltd. * 2,000 9,054 Hankyu Department Stores * 2,000 13,404 Hino Motors, Ltd. * 3,000 21,394 Hirose Electric Company, Ltd. * 300 34,443 Hitachi Cable, Ltd. * 2,000 7,505 Hitachi Chemical * 1,300 21,842 Hitachi Software Engineering Company, Ltd. * 300 7,743 Hitachi, Ltd. * 33,000 198,983 Hokugin Financial * (a) 10,000 13,534 Honda Motor Company * 9,100 404,312 House Food Corp. * 800 9,058 Hoya Corp. * 1,300 119,401 Isetan Company, Ltd. * 1,800 19,825 Ishihara Sangyo * (a) 4,000 7,990 Ishikawajima Harima Heavy Industries Company, Ltd. * 12,000 17,137 Ito-Yokado Company, Ltd. * 4,000 125,823 Itochu Corp. * 16,000 52,868 Itochu Techno-Science Corp. * (a) 300 9,353 ITOEN, Ltd. * 300 12,909 Jafco Company, Ltd. * 300 23,578 Japan Airlines System Corp. * 8,000 21,132 Japan Real Estate Investment * 3 18,985 Japan Tobacco, Inc. * 8 58,618 JFE Holdings, Inc * 5,400 147,431 JGC Corp. * 2,000 20,871 JSR Corp. * 2,000 44,710 Jusco Company * 2,700 90,475 Kajima Corp. * (a) 10,000 32,482 Kaken Pharmaceutical Company, Ltd. * 1,000 5,022 Kamigumi Company * 3,000 21,226 Kanebo * 3,000 3,024 Kaneka Corp. * 3,000 22,402 Kansai Electric Power Company * 7,900 138,481 Kao Corp. * 6,000 122,089 Katokichi Company * 500 8,181 Kawasaki Heavy Industries, Ltd. * (a) 13,000 16,017 Kawasaki Kisen * 5,000 24,875 Keihin Electric Express Railway Company, Ltd. * (a) 5,000 29,356 Keio Electric Railway Company, Ltd. * 6,000 31,194 Keyence Corp. * 400 84,342 Kikkoman Corp. * 1,000 7,113 Kinden Corp. * 2,000 9,427 Kinki Nippon Railway * 17,000 51,094 Kirin Brewery Company, Ltd. * (a) 8,000 68,250 Kokuyo Company, Ltd. * 600 6,524 Komatsu * 11,000 69,818 Komori Corp. * 1,000 14,813 Konami Corp. * 1,000 29,122 Konica Minolta Holdings, Inc. * 4,500 60,526 Koyo Seiko Company * 1,000 10,277 Kubota Corp. * (a) 11,000 45,382 Kuraray Company * 4,000 33,752 Kurita Water Industries, Ltd. * 1,000 12,069 Kyocera Corp. * 1,900 126,625 Kyowa Hakko Kogyo * (a) 4,000 25,463 Kyushu Electric Power * 4,700 80,852 Lawson, Inc. * 700 23,914 Mabuchi Motor Company, Ltd. * (a) 300 23,102 Makita Corp. * 1,000 10,015 Marubeni Corp. * (a) 15,000 28,702 Marui Company, Ltd. * 4,000 50,404 Matsumotokiyoshi Co * 200 4,490 Matsumotokiyoshi Company, Ltd. * 200 4,490 Matsushita Electric Industrial Company, Ltd. * 24,000 331,992 Matsushita Electric Works, Ltd. * (a) 5,000 44,943 Meiji Milk Product * 2,000 8,587 Meiji Seika Kaisha, Ltd. * 3,000 12,097 Meitec Corp. * 400 15,382 Millea Holdings, Inc. * 17 222,150 Minebea Company * 4,000 20,311 Mitsubishi Chemical Corp. * 19,000 49,480 Mitsubishi Corp. * 12,000 127,241 Mitsubishi Electric Corp. * 20,000 83,073 Mitsubishi Estate Company, Ltd. * 11,000 104,317 Mitsubishi Gas Chemical Company, Inc. * 4,000 13,628 Mitsubishi Heavy Industries, Ltd. * 33,000 91,791 Mitsubishi Logistc Corp. * 1,000 8,317 Mitsubishi Materials Corp. * 11,000 16,941 Mitsubishi Paper Company * 2,000 3,024 Mitsubishi Rayon Company, Ltd. * 6,000 22,514 Mitsubishi Tokyo Financial Group, Inc. * 47 366,752 Mitsui & Company, Ltd. * 14,000 112,774 Mitsui Chemicals, Inc. * 6,000 35,003 Mitsui Engineering & Shipbuilding Company, Ltd. * (a) 8,000 13,217 Mitsui Fudosan Company * 8,000 72,283 Mitsui Mining & Smelting Company, Ltd. * 6,000 24,922 Mitsui O.S.K. Lines, Ltd. * 9,000 43,935 Mitsui Sumitomo Insurance Company, Ltd. * 15,000 123,209 Mitsui Trust Holdings, Inc. * 6,000 33,546 Mitsukoshi, Ltd. * 3,000 12,209 Mitsumi Electric Company, Ltd. * (a) 900 9,913 Mizuho Financial Group, Inc. * (a) 56 169,879 Murata Manufacturing Company, Ltd. * 2,600 140,514
The accompanying notes are an integral part of the financial statements. 247 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ --------- JAPAN - CONTINUED Namco, Ltd. * 400 $ 11,089 NEC Corp. * 17,000 125,197 Net One Systems Company, Ltd. * 2 15,401 NGK Insulators, Ltd. * 3,000 22,402 NGK Spark Plug Company * 2,000 16,223 Nichii Gakkan Company * 200 11,350 Nichirei Corp. * 3,000 9,717 Nidec Corp. * (a) 400 38,195 Nikko Cordial Corp. * 15,000 83,586 Nikon Corp. * 3,000 45,251 Nintendo Company, Ltd. * (a) 1,200 112,008 Nippon Building Fund, Inc. * (a) 2 12,844 Nippon Express Company * 9,000 42,507 Nippon Kayaku Company, Ltd. * 2,000 9,913 Nippon Meat Packer * 2,000 19,564 Nippon Mining Holdings, Inc. * 6,000 20,946 Nippon Oil Corp. * 15,000 76,446 Nippon Sanso Corp. * 2,000 8,457 Nippon Sheet Glass * 5,000 14,608 Nippon Shokubai Company, Ltd. * 2,000 15,177 Nippon Steel Corp. * 63,000 135,250 Nippon Telegraph & Telephone Corp. * 61 294,367 Nippon Unipac Holding * 10 51,617 Nippon Yusen KK * 11,000 49,797 Nishimatsu Construction Company, Ltd. * (a) 3,000 9,941 Nissan Chemical Industries, Ltd. * 2,000 17,828 Nissan Motor Company * 29,000 331,320 Nisshin Flour Mill * 2,000 17,809 Nisshinbo Industries, Inc. * 2,000 11,145 Nissin Food Products * 1,000 24,922 Nitto Denko Corp. * 1,800 95,767 Nomura Research Institute, Ltd. * 300 29,262 Nomura Securities Company, Ltd. * 21,000 357,726 Noritake Company * 1,000 3,556 NSK, Ltd. * 5,000 18,248 NTN Corp. * 5,000 23,848 NTT Data Corp. * (a) 15 56,704 NTT DoCoMo, Inc. * 205 464,974 Obayashi Corp. * 7,000 31,297 OBIC Co., Ltd. * 100 20,124 Oji Paper Company * 9,000 58,132 Oki Electric Industry Company, Ltd. * 6,000 23,466 Okumura Corp. * 2,000 8,513 Olympus Optical Company * 2,000 43,403 Omron Corp. * 2,400 48,724 Onward Kashiyama Company, Ltd. * 1,000 12,134 Oracle Corp. * 400 20,722 Oriental Land Company, Ltd. * (a) 600 37,019 Orix Corp. * 1,000 82,699 Osaka Gas Company * 24,000 64,965 Pioneer Electronic Corp. * 1,800 49,732 Promise Company, Ltd. * 1,050 45,769 Q.P. Corp. * (a) 1,500 12,461 Resona Holdings, Inc. * (a) 53,000 66,785 Ricoh Company, Ltd. * 7,000 138,190 Rohm Company * 1,200 140,682 Saizeriya Company, Ltd. * 200 1,990 Sanden Corp. * 1,000 6,160 Sankyo Company * 4,200 78,994 Sankyo Company * 500 15,868 Sanyo Electric Company * (a) 18,000 94,087 Sapporo Holdings * (a) 4,000 11,014 Secom Company, Ltd. * 2,500 93,340 SEGA Enterprises * (a) 1,300 12,377 Seiko Epson Corp. * 700 32,669 Seino Transportation * (a) 2,000 16,540 Sekisui Chemical Company, Ltd. * 5,000 25,482 Sekisui House, Ltd. * 6,000 61,997 Seven Eleven Japan Company, Ltd. * 5,000 151,678 Sharp Corp. * 10,000 157,838 Shimachu Company, Ltd. * 600 11,901 Shimamura Company * 300 20,385 Shimano, Inc. * (a) 800 16,577 Shimizu Corp. * 6,000 22,850 Shin-Etsu Chemical Company, Ltd. * 4,200 171,709 Shionogi & Company * 3,000 55,892 Shiseido Company * 4,000 48,649 Shizuoka Bank * (a) 7,000 51,748 Showa Denko KK * (a) 11,000 24,744 Showa Shell Sekiyu * (a) 1,400 11,382 Skylark Company * (a) 1,000 16,521 SMC Corp. * 600 74,709 Snow Brand Milk * (a) 1,000 2,884 SOFTBANK Corp. * 2,400 73,477 Sompo Japan Insurance * 9,000 74,009 Sony Corp. * 10,200 353,218 Stanley Electric * 1,700 32,926 Sumitomo Bakelite Company, Ltd. * 2,000 13,049 Sumitomo Chemical Company, Ltd. * 13,000 53,633 Sumitomo Corp. * (a) 8,000 59,663 Sumitomo Electric Industries, Ltd. * 7,000 62,594 Sumitomo Heavy Industries, Ltd. * 6,000 13,609 Sumitomo Metal Industry * 39,000 38,587 Sumitomo Metal Mining * 6,000 44,523 Sumitomo Mitsui Financial Group, Inc. * (a) 44 234,508 Sumitomo Osaka Cement Company, Ltd. * 4,000 7,841 Sumitomo Realty & Development Company, Ltd. * 4,000 35,245 Sumitomo Trust & Banking Company * (a) 11,000 64,685 Suruga Bank * 2,000 12,862 Suzuken Company, Ltd. * 500 16,241 Taisei Corp. * (a) 9,000 32,930 Taisho Pharm Company * 2,000 35,768 Taiyo Yuden Company * 1,000 13,077 Takara Holdings * 2,000 18,743 Takashimaya Company * (a) 3,000 21,422 Takeda Chemical Industries, Ltd. * 9,800 388,762 Takefuji Corp. * (a) 740 34,605 Takuma Company * 1,000 5,460 TDK Corp. * 1,300 93,676 Teijin, Ltd. * 9,000 26,462 Teikoku Oil Company * (a) 2,000 10,062 Terumo Corp. * 1,900 36,090 The 77th Bank, Ltd. * 4,000 22,551 The Bank of Fukuoka, Ltd. * (a) 6,000 25,202 The Bank of Yokohama, Ltd. * (a) 11,000 51,132 The Chiba Bank, Ltd. * 7,000 28,683 The Joyo Bank, Ltd. * (a) 8,000 26,135
The accompanying notes are an integral part of the financial statements. 248 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- JAPAN - CONTINUED THK Company, Ltd. * (a) 1,100 $ 22,383 TIS, Inc. * (a) 400 13,516 Tobu Railway Company * 9,000 32,174 Toda Corp. * 2,000 5,656 Toho Company * 1,500 19,097 Tohoku Electric Power * 5,000 82,933 Tokyo Broadcasting Company * 400 6,373 Tokyo Electric Power Company * 13,400 293,928 Tokyo Electron, Ltd. * 1,700 129,164 Tokyo Gas Company * (a) 29,000 103,402 Tokyo Style Company, Ltd. * 1,000 10,809 Tokyu Corp. * 11,000 56,471 TonenGeneral Sekiyu KK. * (a) 3,000 24,838 Toppan Printing Company * 6,000 62,445 Toray Industries, Inc. * 14,000 58,543 Toshiba Corp. * 32,000 121,268 Tosoh Corp. * 5,000 16,708 Tostem Corp. * 3,000 57,964 Toto, Ltd. * 4,000 33,901 Toyo Seikan Kaisha * 2,000 27,965 Toyo Suisan Kaisha * 1,000 11,117 Toyobo Company * 7,000 15,289 Toyoda Gosei * (a) 600 17,305 Toyota Industries Corp. * 1,900 40,346 Toyota Motor Corp. * 31,600 1,067,737 Trend Micro, Inc. * 1,000 26,835 UBE Industries * 9,000 18,061 UFJ Holdings, Inc. * (a) 41 197,088 UNI Charm Corp. * 500 24,595 UNY Company, Ltd. * 2,000 20,535 Ushio, Inc. * 1,000 16,605 Uss Co., Ltd. * 220 15,565 Wacoal Corp. * 1,000 8,242 West Japan Railway * 13 51,085 World Company * 400 12,732 Yakult Honsha Company * 1,000 15,634 Yamada Denki Company * (a) 900 30,242 Yamaha Corp. * 1,800 35,367 Yamaha Motor Company, Ltd. * 1,000 10,911 Yamanouchi Pharmaceutical Company, Ltd. * 3,600 111,896 Yamato Transport Company, Ltd. * (a) 5,000 58,898 Yamazaki Baking Company * (a) 2,000 16,596 Yokogawa Electric Corp. * (a) 2,000 28,898 ---------- 18,275,126 LUXEMBOURG - 0.06% Arcelor * (a) 3,986 69,406 ---------- NETHERLANDS - 4.08% ABN AMRO Holdings NV * 17,885 418,010 Aegon NV * 15,715 232,255 Akzo Nobel NV * 3,156 121,678 ASML Holding NV * 5,335 105,667 Corio NV * 500 19,340 Dsm NV * 900 44,258 Euronext * 1,117 28,246 Getronics NV * (a) 1,907 3,989 Hagemeyer NV * (a) 849 1,915 Heineken NV * 2,273 86,460 IHC Caland NV * 371 20,100 ING Groep NV * 20,437 476,110 Koninklijke (Royal) KPN NV * 24,664 190,182 Koninklijke (Royal) Philips Electronics NV * 15,348 447,668 Koninklijke Ahold NV * 7,596 57,806 Numico Kon NV * 1,731 47,785 Oce-Van Der Grinten * 972 14,880 Qiagen NV * 1,475 18,083 Reed Elsevier NV * 7,276 90,299 Rodamco Europe NV * 500 29,086 Royal Dutch Petroleum Company * 24,306 1,280,098 Royal Vendex KBB NV * 933 12,990 TNT Post Group NV * 3,914 91,577 Unilever NV-CVA * (a) 6,663 435,283 Vedior NV * 992 15,498 VNU NV * 2,606 82,250 Wereldhave NV * 257 19,218 Wolters Kluwer NV * 3,127 48,854 ---------- 4,439,585 NEW ZEALAND - 0.17% Auckland International Airport, Ltd. * 2,732 12,548 Carter Holt Harvey * 9,831 12,110 Contact Energy * 3,264 11,505 Fisher & Paykel * 863 7,153 Fisher & Paykel Appliances Holdings, Ltd. * 3,080 7,749 Fletcher Building * 5,215 14,487 Fletcher Challenge Forests * 967 862 Independent Newspapers, Ltd. * 2,005 6,765 NGC Holdings Ltd. * 1,971 2,893 Sky City Entertainment Group, Ltd. * 4,544 13,725 Sky Network Television, Ltd. * 1,125 4,128 Telecom Corp. of New Zealand, Ltd. * 22,717 79,928 The Warehouse Group, Ltd. * 1,694 5,683 Tower Ltd. * 4,813 3,942 ---------- 183,478 NORWAY - 0.38% Aker Kvaerner ASA * 230 3,925 Den Norske Bank ASA * 8,929 59,473 Frontline, Ltd. * (a) 400 10,351 Nera ASA * 700 1,449 Norsk Hydro AS * 1,700 104,688 Norske Skogindustrier ASA * (a) 1,350 25,720 Orkla SA * 2,300 51,410 Schibsted ASA * (a) 600 10,306 Smedvig * 200 1,275 Smedvig ASA, A shares * 100 758 Statoil ASA * 5,000 56,068 Storebrand ASA * 2,200 14,290 Tandberg ASA * 1,400 10,291 Telenor AS * (a) 8,300 54,163 Tomra Systems ASA * 2,300 13,836 ---------- 418,003 PORTUGAL - 0.29% Banco BPI SA * 4,613 16,971 Banco Comercial dos Acores, SA * 22,491 50,157 Banco Espirito Santo SA * 1,272 20,835 Brisa Auto Estrada * 3,395 22,671 Cimpor-Cimentos De Portugal, SA * 2,540 13,121 Electricidade De Portugal * 20,775 54,707 Jeronimo Martins, SGPS * 185 2,438 Portugal Telecom * 10,896 109,553 PT Multimedia.com, SGPS, SA * 522 10,128 Sonae, SGPS, SA * 13,165 10,948 ---------- 311,529
The accompanying notes are an integral part of the financial statements. 249 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ---------- SINGAPORE - 0.66% Allgreen Properties, Ltd. * 7,000 $ 4,616 CapitaLand, Ltd. * (a) 12,000 10,952 Chartered Semiconductor Manufacturing, Ltd. * (a) 12,000 12,224 City Developments, Ltd. * 5,000 17,812 Comfortdelgro Corp * 16,000 7,678 Creative Technology, Ltd. * 450 4,743 Cycle & Carriage, Ltd. * 1,000 3,415 Datacraft Asia, Ltd. * 4,000 5,040 DBS Group Holdings, Ltd. * 13,000 112,524 Fraser & Neave, Ltd. * 1,620 12,019 Guocoland, Ltd. * 2,000 1,390 Haw Par Corp., Ltd. * 1,490 3,913 Hotel Properties, Ltd. * 3,000 1,802 Keppel Corp., Ltd. * 6,000 21,551 Keppel Land, Ltd. * 3,000 2,791 NatSteel, Ltd. * 1,000 1,295 Neptune Orient Lines, Ltd. * 12,000 15,262 OverSeas Union Enterprises, Ltd. * 1,000 4,092 Overseas-Chinese Banking Corp., Ltd. * 12,000 85,497 Parkway Holdings, Ltd. * (a) 6,000 3,445 SembCorp Industries, Ltd. * 9,000 6,677 SembCorp Logistics, Ltd. * 5,000 5,888 SembCorp Marine, Ltd. * 2,000 1,166 Singapore Airlines, Ltd. * 7,000 46,164 Singapore Exchange, Ltd. * (a) 8,000 7,961 Singapore Land, Ltd. * 1,000 2,344 Singapore Post Ltd. * 14,000 5,729 Singapore Press Holdings, Ltd. * 4,000 44,515 Singapore Technologies Engineering, Ltd. * 15,000 18,018 Singapore Telecommunications, Ltd. * 73,000 84,249 SMRT Corporation Ltd. * 12,000 4,240 ST Assembly Test Services, Ltd. * 4,000 4,993 United Overseas Bank * 14,000 108,815 United Overseas Land, Ltd. * 3,000 3,392 Venture Corp., Ltd. * 3,000 35,330 Wing Tai Holdings * 4,000 1,955 ---------- 713,497 SPAIN - 2.90% Abertis Infrastructuras SA * (a) 2,536 38,311 Acciona SA * 363 22,068 Acerinox SA * (a) 559 26,327 ACS, Actividades de Construcciony Servicios, SA * (a) 1,127 54,953 Aguas De Barcelona * (a) 695 10,359 Altadis SA, Series A * 3,147 89,214 Amadeus Global Travel Distribution SA, Series A * 3,055 19,823 Antena 3 Television SA * (a) 177 7,792 Banco Bilbao Vizcaya Argentaria, SA * (a) 35,328 487,401 Banco Popular Espanol SA * (a) 1,846 110,014 Banco Santander Central, Hispano SA * 50,119 592,955 Corporacion Mapfre SA * 1,026 14,517 Endesa SA * (a) 10,443 200,654 Fomento de Construcciones SA * (a) 578 21,294 Gas Natural SDG SA * (a) 2,413 56,397 Grupo Ferrovial SA * 752 26,321 Iberdrola SA * (a) 8,906 175,835 Iberia Lineas Aereas de Espana SA * 5,566 15,989 Indra Sistemas SA * 1,300 16,658 Industria de Diseno Textil, SA * 2,499 50,693 NH Hoteles SA * 768 8,815 Promotora de Informaciones SA * (a) 897 12,997 Repsol-YPF SA * (a) 10,683 208,092 Sacyr Vallehermoso SA * (a) 1,116 16,873 Telefonica Publicidad e Informacion SA * 1,733 9,498 Telefonica SA * 54,865 804,640 TelePizza SA * 1,211 1,877 Union Fenosa SA * (a) 2,249 42,193 Zeltia SA * (a) 1,784 12,588 ---------- 3,155,148 SWEDEN - 1.79% Alfa Laval AB * 900 13,701 Assa Abloy AB * 3,400 40,415 Atlas Copco AB-A Shares * 1,300 46,540 Atlas Copco AB-B Shares * 800 26,082 Axfood AB * 300 6,944 Billerud Aktibolag * 600 9,051 Castellum AB * 400 9,454 Drott AB * 900 17,080 Electrolux AB, Series B * 3,500 76,882 Eniro AB * 2,200 21,104 Ericsson LM, Series B * 172,700 309,731 Gambro AB, B Shares * 1,100 9,099 Getinge Ab * 1,600 15,349 Hennes & Mauritz AB, Series B * 5,525 131,350 Hoganas AB, B Shares * 300 6,423 Holmen AB * 600 21,313 Incentive AB, Series A * 1,900 15,717 Modern Time Group AB, B Shares * (a) 550 11,584 Nobel Biocare Holding AG * 100 9,760 Nordea AB * 27,500 206,456 OM Hex AB * 750 9,332 Sandvik AB * 2,600 89,645 SAS AB * (a) 1,200 11,345 Securitas AB-B Shares * 3,400 45,851 Skandia Foersaekrings AB * 10,100 36,790 Skandinaviska Enskilda Baken, Series A * 5,600 82,527 Skanska AB * 4,300 37,962 SKF AB-A Shares * 200 7,758 SKF AB-B Shares * 1,000 38,650 SSAB Svenskt Stal AB, Series A * 600 10,719 SSAB Svenskt Stal AB, Series B * 200 3,434 Svenska Cellulosa * 2,300 94,011 Svenska Handelsbanken AB, A Shares * 6,400 130,797 Svenska Handelsbanken AB, B Shares * 600 11,887 Swedish Match AB * 4,000 40,874 Tele2 AB * (a) 1,150 61,395 Teliasonera AB * 18,900 98,799 Trelleborg AB * 800 13,013 Volvo AB, A Shares * 1,100 32,268 Volvo AB, B Shares * 2,700 82,583 WM Data AB, B shares * (a) 2,000 4,310 ---------- 1,947,985
The accompanying notes are an integral part of the financial statements. 250 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- --------- SWITZERLAND - 5.83% ABB, Ltd. * 20,155 $ 102,135 Adecco SA * 1,537 98,757 Ciba Specialty Chemicals Holding, Inc. * 805 62,263 Clariant AG * 1,531 22,582 Compagnie Financiere Richemont AG * 6,071 145,728 Credit Suisse Group * 13,867 507,138 Geberit AG * 40 19,656 Givaudan AG * 88 45,661 Holcim, Ltd. * 1,590 74,019 Kudelski SA * 405 13,371 Kuoni Reisen Holding AG * 34 11,376 Logitech International SA * 513 22,182 Lonza Group AG * 520 29,881 Nestle SA * 4,709 1,176,013 Novartis AG-Reg Shares * 27,769 1,260,187 Roche Holding AG-Genusschein * 8,195 826,256 Roche Holdings AG * 367 50,869 Schindler Holding AG * 63 15,377 Serono SA * 81 57,740 Societe Generale de Surveillance Holding SA * 50 31,359 Sulzer AG * 38 10,227 Swatch Group AG * 573 13,662 Swatch Group AG, B shares * 394 47,288 Swiss Reinsurance * 3,738 252,261 Swisscom AG * 306 100,904 Syngenta AG * (a) 1,226 82,539 Synthes-Stratec, Inc. * 50 49,462 Tecan Group AG * 79 3,818 UBS AG-Registered * 13,770 942,632 Unaxis Holding AG * 130 18,413 Valora Holding AG * 46 11,451 Zurich Financial Services AG * 1,671 240,393 ---------- 6,345,600 UNITED KINGDOM - 20.33% 3i Group PLC * 7,072 77,952 Aegis Group PLC * 13,367 23,563 Aggreko PLC * 3,035 8,370 Alliance Unichem * 2,952 27,349 AMEC PLC * 3,798 17,627 Amvescap PLC * 7,939 57,501 ARM Holdings PLC * 11,849 27,179 Associated British Ports Holdings PLC * 3,613 28,958 AstraZeneca Group PLC * 19,917 952,817 Aviva PLC * 26,273 229,921 BAA PLC * 12,429 110,100 Barclays PLC * 76,452 679,965 Barratt Developments * 3,002 29,098 BBA Group PLC * 5,542 24,682 BG Group PLC * 41,085 210,299 BHP Billiton PLC * 28,788 250,774 BICC PLC * 5,099 19,888 BOC Group PLC * 5,760 87,756 Boots Group PLC * 9,129 112,604 BP PLC * 257,874 2,085,242 BPB PLC * 6,111 37,852 Brambles Industries, Ltd. * 8,380 30,441 Bristish Aerospace Systems PLC * 35,757 107,391 British Airways * 6,466 26,835 British American Tobacco Australasia, Ltd. * 18,433 253,360 British Land Company PLC * 5,721 59,640 British Sky Broadcasting Group PLC * 14,667 184,055 BT Group PLC * 100,873 338,969 Bunzl PLC * 5,477 41,722 Cable & Wireless PLC * 27,996 66,716 Cadbury Schweppes PLC * 23,980 175,610 Canary Wharf Group PLC * 5,703 27,257 Capita Group * 8,112 35,187 Carlton Communications PLC * 7,353 30,189 Carnival Plc * 1,813 72,849 Cattles PLC * 3,600 21,480 Celltech Group PLC * 3,348 22,591 Centrica PLC * 49,380 185,988 Close Brothers Group PLC * 1,520 19,915 Cobham PLC * 1,279 26,644 Compass Group PLC * 25,420 172,429 Daily Mail and General Trust * 3,372 39,666 De Lousiana Rue PLC * 1,732 8,572 Diageo PLC * 36,167 474,516 Dixons Group PLC * 22,056 54,726 E D & F Manitoba Treasury Management * 3,213 83,794 Electrocomponents PLC * 5,197 30,150 EMAP PLC * 3,071 46,980 EMI Group PLC * 8,998 25,498 Enterprise Inns PLC * 2,048 37,070 FirstGroup PLC * 5,028 24,547 FKI PLC * 7,192 13,737 Friends Provident Ethical Investment Trust * 19,556 46,079 George Wimpey PLC * 4,233 28,203 GKN PLC * 8,575 40,869 GlaxoSmithKline PLC * 69,551 1,589,147 Granada Compass PLC * 32,121 69,952 Great Portland Estates PLC * 2,022 8,464 Great University Stores * 11,775 162,582 Hammerson PLC * 3,372 38,974 Hanson Plc * 7,856 57,531 Hanson PLC * 387 2,512 Hays PLC * 19,215 41,160 HBOS PLC * 44,752 577,965 HHG Plc * 17,632 12,745 Hilton Group PLC * 18,792 75,392 HSBC Holdings PLC * 126,924 1,989,248 IMI PLC * 3,852 23,189 Imperial Chemical Industries PLC * 13,726 48,758 Imperial Tobacco * 8,486 166,627 Intercontinental Hotels Group PLC * 7,279 68,735 International Power PLC * 13,485 29,728 Invensys PLC * 37,344 12,166 J. Sainsbury PLC * 16,844 94,036 Johnson Matthey PLC * 2,543 44,531 Kesa Electricals PLC * 6,582 30,225 Kidde PLC * 10,723 20,385 Kingfisher PLC * 24,891 123,742 Land Securities Group PLC * 5,449 96,489 Legal & General Group PLC * 75,519 135,142 Liberty International * 2,800 34,112
The accompanying notes are an integral part of the financial statements. 251 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ----------- UNITED KINGDOM - CONTINUED Lloyds TSB Group PLC * 65,085 $ 520,487 Logicacmg PLC * 8,713 39,855 Marks & Spencer Group, PLC * 26,272 135,532 MFI Furniture Group * 6,400 17,251 Misys PLC * 6,675 25,230 Mitchells & Butler PLC * 5,962 23,946 National Grid Transco PLC * 35,753 255,443 Next Group * 3,228 64,709 Novar PLC * 4,484 11,046 Nycomed Amersham PLC * 8,148 111,339 Ocean Group * 3,413 44,992 Pearson PLC * 9,283 103,069 Persimmon PLC * 3,308 31,710 Pilkington PLC * 11,203 19,148 Provident Financial PLC * 2,957 34,336 Prudential Corp. * 23,352 196,855 Rank Group PLC * 6,786 33,827 Reckitt & Colman * 7,008 158,122 Reed Elsevier PLC * 14,719 122,766 Rentokil Initial PLC * 21,573 73,167 Reuters Group PLC * 16,417 68,867 Rexam PLC * 6,280 47,951 Rio Tinto PLC * 12,426 342,254 RMC Group PLC * 2,981 37,116 Rolls-Royce Group PLC * 15,792 49,966 Royal & Sun Alliance * 33,221 52,333 Royal Bank of Scotland PLC * 32,593 957,646 SAB Miller PLC * 9,259 95,696 Safeway, Inc. * 12,614 63,947 Schroders PLC * 1,626 18,344 Scottish & Newcastle PLC * 9,340 63,063 Scottish Hydro * 9,965 119,713 Scottish Power * 21,568 143,316 Securicor * 5,150 8,756 Serco Group PLC * 4,450 13,663 Severn Trent PLC * 4,138 55,325 Shell Transport & Trading Company PLC * 112,828 836,833 Signet Group PLC * 19,627 36,086 Slough Estates PLC * 4,788 37,542 Smith & Nephew PLC * 10,791 90,389 Smiths Group PLC * 6,513 76,848 SSL International PLC * 2,478 14,597 Stagecoach Holdings PLC * 11,469 16,071 Tate & Lyle PLC * 4,898 27,235 Taylor Woodrow PLC * 6,527 31,108 Tesco PLC * 85,336 392,628 The Berkeley Group PLC * 1,243 19,526 The Davis Service Group PLC * 2,454 16,339 The Peninsular & Oriental Steam Navigation Company * 8,260 33,912 The Sage Group PLC * 14,258 44,731 Tomkins PLC * 9,260 44,217 Unilever PLC * 32,221 299,515 United Business Media PLC * 3,864 33,797 United Utilities PLC 6,616 58,518 United Utilities PLC, Class A * 3,432 18,655 Vodafone Group PLC * 795,070 1,965,648 Whitbread & Company PLC * 3,452 44,305 William Hill PLC * 4,885 37,234 Wolseley PLC * 6,819 96,161 WPP Group PLC * 13,730 134,430 Yell Group PLC * 5,218 28,409 Yorkshire Water PLC * 4,576 38,313 ----------- 22,140,542 UNITED STATES - 0.01% Gen-Probe, Inc. * 344 12,546 ----------- TOTAL COMMON STOCK (Cost: $86,696,081) 85,432,534 ----------- PREFERRED STOCK - 0.29% AUSTRALIA - 0.16% News Corp., Ltd. - Limited Voting Shares * 23,372 175,979 ----------- GERMANY - 0.12% Fresenius Medical Care AG * 325 16,359 Porsche AG * 90 53,355 RWE AG * 408 14,368 Volkswagen AG - Non Voting Preferred * 1,226 44,410 ----------- 128,492 ITALY - 0.00% Fiat SPA - PRIV EUR * 849 3,968 ----------- NEW ZEALAND - 0.00% Fletcher Challenge * 1,940 1,729 ----------- TOTAL PREFERRED STOCK (Cost: $314,233) 310,168 -----------
PRINCIPAL AMOUNT VALUE ---------- ----------- SHORT TERM INVESTMENTS - 17.64% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $9,718,352 $ 9,718,352 Federal National Mortgage Association Discount Notes, 1.05% due 01/07/2004 2,300,000 2,299,597 1.06% due 02/18/2004 6,700,000 6,690,531 United States Treasury Bills, zero coupon due 01/22/2004 **** 500,000 499,775 ------------ $ 19,208,255 REPURCHASE AGREEMENTS - 3.61% Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.70%, to be repurchased at $3,931,153 on 01/02/2004, collateralized by $2,810,000 U.S. Treasury Bonds, 8.50% due 2/15/2020 (valued at $4,013,031, including interest) $3,931,000 $ 3,931,000 ------------ TOTAL INVESTMENTS (INTERNATIONAL INDEX TRUST) (Cost: $110,149,569) $108,881,957 ============
The Trust had the following five top industry concentrations as of December 31, 2003 (as a percentage of total value of investments): Banking 11.12% Insurance 3.77% Pharmaceuticals 3.55% Telecommunications Equipment & Services 3.54% Petroleum Services 3.34%
The accompanying notes are an integral part of the financial statements. 252 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) MID CAP INDEX TRUST
SHARES VALUE ------ ----------- COMMON STOCK - 90.04% AEROSPACE - 0.05% Sequa Corp., Class A * 1,973 $ 96,677 ----------- AIR TRAVEL - 0.32% Alaska Air Group, Inc. * (a) 5,047 137,733 JetBlue Airways Corp. * (a) 19,168 508,335 ----------- 646,068 APPAREL & TEXTILES - 1.29% Coach, Inc. * 35,068 1,323,817 Mohawk Industries, Inc. * 12,563 886,194 Timberland Company, Class A * 6,616 344,495 Unifi, Inc. * 9,849 63,526 ----------- 2,618,032 AUTO PARTS - 1.54% Arvinmeritor, Inc. 12,943 312,185 BorgWarner, Inc. 5,183 440,918 Federal Signal Corp. (a) 9,067 158,854 Gentex Corp. 14,497 640,187 Lear Corp. 12,788 784,288 Modine Manufacturing Company 6,463 174,372 O'Reilly Automotive, Inc. * (a) 10,257 393,458 Superior Industries International, Inc. 5,055 219,994 ----------- 3,124,256 AUTO SERVICES - 0.14% Copart, Inc. * 16,802 277,233 ----------- BANKING - 8.51% Associated Banc-Corp. 13,850 590,703 Astoria Financial Corp. 15,004 558,149 Bank of Hawaii Corp. 10,568 445,970 Banknorth Group, Inc. 30,548 993,726 City National Corp. 9,251 574,672 Colonial Bancgroup, Inc. 23,512 407,228 Commerce Bancorp, Inc. (a) 14,331 754,957 Cullen Frost Bankers, Inc. 9,799 397,545 FirstMerit Corp. 15,982 431,035 Greater Bay Bancorp (a) 9,892 281,724 Greenpoint Financial Corp. 25,199 890,029 Hibernia Corp., Class A 29,329 689,525 Independence Community Bank Corp. 10,281 369,808 Investors Financial Services Corp. (a) 12,339 473,941 M&T Bank Corp. 22,682 2,229,641 Mercantile Bankshares Corp. 15,045 685,751 National Commerce Financial Corp. 38,737 1,056,745 New York Community Bancorp, Inc. 36,381 1,384,297 Provident Financial Group, Inc. (a) 9,240 295,218 Silicon Valley Bancshares * (a) 6,563 236,727 Sovereign Bancorp, Inc. * 55,279 1,312,876 TCF Financial Corp. 13,406 688,398 Washington Federal, Inc. 13,173 374,113 Webster Financial Corp. 8,620 395,313 Westamerica BanCorp 6,170 306,649 Wilmington Trust Corp. 12,471 448,956 ----------- 17,273,696 BIOTECHNOLOGY - 0.83% Charles River Laboratories International, Inc. * 8,649 296,920 Millennium Pharmaceuticals, Inc. * 56,935 1,062,977 Protein Design Labs, Inc. * (a) 17,711 317,027 ----------- 1,676,924 BROADCASTING - 1.01% Belo Corp., Class A 21,623 612,796 Emmis Communications Corp., Class A * (a) 10,340 279,697 Entercom Communications Corp. * 9,709 514,188 Westwood One, Inc. * 18,894 646,364 ----------- 2,053,045 BUILDING MATERIALS & CONSTRUCTION - 0.30% Dycom Industries, Inc. * 9,119 244,571 RPM International, Inc. 21,854 359,717 ----------- 604,288 BUSINESS SERVICES - 5.32% Acxiom Corp. * 16,039 297,844 Affiliated Computer Services, Inc., Class A *, 24,805 1,350,880 Banta Corp. 4,828 195,534 Brinks Company 10,252 231,798 Cadence Design Systems, Inc. * 49,708 893,750 Catalina Marketing Corp. * 10,096 203,535 Ceridian Corp. * 28,231 591,157 Certegy, Inc. 12,254 401,931 ChoicePoint, Inc. * 16,519 629,209 CSG Systems International, Inc. * 9,891 123,539 DST Systems, Inc. * 15,767 658,430 Dun & Bradstreet Corp. * 13,739 696,705 Gartner Group, Inc., Class A * (a) 24,427 276,269 Harte-Hanks, Inc. 16,516 359,223 Jacobs Engineering Group, Inc. * 10,478 503,049 Kelly Services, Inc., Class A 6,551 186,966 Korn/Ferry International * (a) 7,107 94,807 Manpower, Inc. 14,724 693,206 MPS Group, Inc. * 19,734 184,513 Reynolds & Reynolds Company, Class A * 12,666 367,947 Rollins, Inc. (a) 8,525 192,239 Sothebys Holdings, Inc., Class A * (a) 11,658 159,248 The BISYS Group, Inc. * 22,336 332,360 The Titan Corp. * 15,394 335,743 Valassis Communications, Inc. * 9,837 288,716 Viad Corp. * 16,697 417,425 Wind River Systems, Inc. * 15,904 139,319 ----------- 10,805,342 CELLULAR COMMUNICATIONS - 0.51% RF Micro Devices, Inc. * (a) 35,048 352,232 Telephone & Data Systems, Inc. 10,854 678,918 ----------- 1,031,150 CHEMICALS - 2.16% Airgas, Inc. 13,967 300,011 Albemarle Corp. 7,774 232,987 Cabot Corp. 11,662 371,318 Cabot Microelectronics Corp. * (a) 4,676 229,124 Crompton Corp. 21,025 150,749 Cytec Industries, Inc. * 7,376 283,165 Ferro Corp. 7,800 212,238 FMC Corp. * 6,669 227,613 IMC Global, Inc. 21,750 215,978 Lubrizol Corp. * 9,743 316,842 Lyondell Chemical Company 33,418 566,435 Minerals Technologies, Inc. 3,850 228,112 Olin Corp. (a) 11,082 222,305 The Scotts Company, Class A * (a) 6,094 360,521 Valspar Corp. 9,568 472,851 ----------- 4,390,249 COAL - 0.36% Arch Coal, Inc. 9,950 310,142 Peabody Energy Corp. 10,250 427,527 ----------- 737,669 COLLEGES & UNIVERSITIES - 0.77% Career Education Corp. * 18,925 758,325 Corinthian Colleges, Inc. * 8,375 465,315
The accompanying notes are an integral part of the financial statements. 253 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- COLLEGES & UNIVERSITIES - CONTINUED DeVry, Inc. * 13,236 $ 332,620 ---------- 1,556,260 COMPUTERS & BUSINESS EQUIPMENT - 3.21% 3Com Corp. * 70,486 575,871 CDW Corp. 15,729 908,507 Diebold, Inc. 13,724 739,312 Fair Isaac Corp. 9,108 447,749 GTECH Holdings Corp. 11,140 551,319 Henry, Jack & Associates, Inc. 16,853 346,835 National Instruments Corp. (a) 9,825 446,743 Plexus Corp. * 8,031 137,892 Quantum Corp. * (a) 33,637 104,947 Sandisk Corp. * (a) 14,986 916,244 Storage Technology Corp. * 20,905 538,304 Sybase, Inc. * 18,273 376,058 Tech Data Corp. * 10,735 426,072 ---------- 6,515,853 CONSTRUCTION MATERIALS - 0.44% Granite Construction, Inc. (a) 7,848 184,349 Martin Marietta Materials, Inc. 9,246 434,285 Trinity Industries, Inc. * (a) 8,759 270,128 ---------- 888,762 CONSTRUCTION & MINING EQUIPMENT - 0.18% National Oilwell, Inc. * 16,074 359,415 ---------- CONTAINERS & GLASS - 0.50% Longview Fibre Company 9,652 119,202 Packaging Corp. of America 19,924 435,539 Sonoco Products Company 18,336 451,432 ---------- 1,006,173 CRUDE PETROLEUM & NATURAL GAS - 1.50% Helmerich & Payne, Inc. * 9,466 264,385 Patterson-UTI Energy, Inc. * 15,292 503,413 Pioneer Natural Resources Company * 22,304 712,167 Pogo Producing Company 12,046 581,822 XTO Energy, Inc. 34,824 985,519 ---------- 3,047,306 DOMESTIC OIL - 0.93% Forest Oil Corp. * 10,089 288,243 Murphy Oil Corp. 17,358 1,133,651 Noble Energy, Inc. 10,724 476,467 ---------- 1,898,361 DRUGS & HEALTH CARE - 0.62% Edwards Lifesciences Corp. * 11,199 336,866 Hillenbrand Industries, Inc. 11,678 724,736 Perrigo Company 13,204 207,567 ---------- 1,269,169 EDUCATIONAL SERVICES - 0.33% Education Management Corp. * 13,672 424,379 Sylvan Learning Systems, Inc. * 8,234 237,057 ---------- 661,436 ELECTRICAL EQUIPMENT - 0.69% AMETEK, Inc. 6,308 304,424 Energizer Holdings, Inc. * 15,975 600,021 Hubbell, Inc., Class B * 11,288 497,801 ---------- 1,402,246 ELECTRIC UTILITIES - 3.57% ALLETE, Inc. 16,427 502,666 Alliant Corp. 20,922 520,958 Black Hills Corp. 6,078 181,307 DPL, Inc. 23,905 499,136 Duquesne Light Holdings, Inc. * (a) 14,230 260,978 Great Plains Energy, Inc. 13,087 416,428 Hawaiian Electric Industries, Inc. (a) 7,132 337,843 IDACORP, Inc. (a) 7,220 216,022 Northeast Utilities 25,292 510,140 NSTAR 10,022 486,067 OGE Energy Corp. * 16,425 397,321 Pepco Holdings, Inc. 32,386 632,822 PNM Resources, Inc. 7,606 213,729 Puget Energy, Inc. * 17,805 423,225 Quanta Services, Inc. * (a) 22,030 160,819 Sierra Pacific Resources * (a) 22,144 162,537 Westar Energy, Inc. 13,694 277,303 Wisconsin Energy Corp. 22,235 743,761 WPS Resources Corp. 6,838 316,121 ---------- 7,259,183 ELECTRONICS - 2.68% Arrow Electronics, Inc. * 19,064 441,141 Avnet, Inc. * 22,644 490,469 Imation Corp. 6,727 236,454 Kemet Corp. * 16,333 223,599 L-3 Communications Holdings, Inc. * 18,289 939,323 Mentor Graphics Corp. * 12,886 187,362 Synopsys, Inc. * 29,351 990,890 Teleflex, Inc. (a) 7,500 362,475 Varian, Inc. * 6,548 273,248 Vishay Intertechnology, Inc. * (a) 30,320 694,328 Zebra Technologies Corp., Class A * 8,938 593,215 ---------- 5,432,504 ENERGY - 0.63% Energy East Corp. * 27,598 618,195 Hanover Compressor Company * (a) 13,906 155,052 MDU Resources Group, Inc. 21,398 509,486 ---------- 1,282,733 FINANCIAL SERVICES - 3.15% A.G. Edwards, Inc. * 14,867 538,631 Americredit Corp. * (a) 29,573 471,098 Compass Bancshares, Inc. 23,003 904,248 E*TRADE Financial Corp. * 69,173 875,039 Eaton Vance Corp. 13,033 477,529 IndyMac Bancorp, Inc. 10,509 313,063 Investment Technology Group, Inc. * 8,831 142,621 LaBranche & Company, Inc. (a) 11,299 131,859 Legg Mason, Inc. 12,510 965,522 Leucadia National Corp. 13,161 606,722 SEI Investment Company 19,922 607,023 Waddell & Reed Financial, Inc., Class A 15,566 365,178 ---------- 6,398,533 FOOD & BEVERAGES - 2.64% Bob Evans Farms, Inc. 6,607 214,463 Constellation Brands, Inc., Class A * 19,869 654,286 Dean Foods Company * 29,484 969,139 Hormel Foods Corp. 26,180 675,706 Interstate Bakeries Corp. * 8,467 120,485 PepsiAmericas, Inc. 27,274 466,931 Sensient Technologies Corp. 8,821 174,391 Smithfield Foods, Inc. * 20,919 433,023 The J.M. Smucker Company 9,458 428,353 Tootsie Roll Industries, Inc. * 9,746 350,856 Tyson Foods, Inc., Class A * 66,223 876,793 ---------- 5,364,426 FOREST PRODUCTS - 0.18% Rayonier, Inc. 8,774 364,209 ----------
The accompanying notes are an integral part of the financial statements. 254 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- FURNITURE & FIXTURES - 0.15% Furniture Brands International, Inc. 10,544 $ 309,256 ---------- GAS & PIPELINE UTILITIES - 2.12% AGL Resources, Inc. 12,144 353,391 Aquila, Inc. * 36,881 125,027 Equitable Resources, Inc. 11,764 504,911 National Fuel Gas Company 15,369 375,618 ONEOK, Inc. (a) 17,890 395,011 Philadelphia Suburban Corp. 17,466 385,993 Questar Corp. 15,693 551,609 SCANA Corp. 20,928 716,784 Vectren Corp. 14,289 352,224 Western Gas Resources, Inc. * (a) 6,281 296,777 WGL Holdings, Inc. 9,184 255,223 ---------- 4,312,568 HEALTHCARE PRODUCTS - 2.33% Apogent Technologies, Inc. * (a) 17,094 393,846 Beckman Coulter, Inc. 11,653 592,322 Cytyc Corp. * 20,730 285,245 DENTSPLY International, Inc. 14,956 675,563 Henry Schein, Inc. * 8,248 557,400 Patterson Dental Company * 12,895 827,343 STERIS Corp. * 13,119 296,489 Varian Medical Systems, Inc. * 12,854 888,211 VISX, Inc. * (a) 9,133 211,429 ---------- 4,727,848 HEALTHCARE SERVICES - 2.87% AdvancePCS * 17,549 924,130 Apria Healthcare Group, Inc. * 9,644 274,565 Covance, Inc. * 11,715 313,962 Coventry Health Care, Inc. * 11,352 732,090 First Health Group Corp. * 17,832 347,011 Health Net, Inc. * 21,479 702,363 Lincare Holdings, Inc. * 18,586 558,138 Omnicare, Inc. 19,358 781,870 Oxford Health Plans, Inc. 15,304 665,724 Pacificare Health Systems, Inc. * 7,894 533,634 ---------- 5,833,487 HOMEBUILDERS - 1.85% D.R. Horton, Inc. 29,705 1,285,038 Hovnanian Enterprises, Inc., Class A * 5,673 493,891 Lennar Corp., Class A 14,895 1,429,920 Toll Brothers, Inc. * (a) 13,806 548,927 ---------- 3,757,776 HOTELS & RESTAURANTS - 2.36% Applebee's International, Inc. 10,389 407,976 Boyd Gaming Corp. 12,185 196,666 Brinker International, Inc. * 18,271 605,866 CBRL Group, Inc. 9,351 357,769 Extended Stay America, Inc. 18,348 265,679 Krispy Kreme Doughnuts, Inc. * (a) 11,391 416,911 Mandalay Resort Group 11,620 519,646 Outback Steakhouse, Inc. 14,138 625,041 Park Place Entertainment Corp. * 57,272 620,256 Ruby Tuesday, Inc. * 12,292 350,199 The Cheesecake Factory, Inc. * (a) 9,768 430,085 ---------- 4,796,094 HOUSEHOLD PRODUCTS - 0.54% Blyth Industries, Inc. 8,602 277,156 Church & Dwight, Inc. 7,643 302,663 Dial Corp. 18,214 518,553 ---------- 1,098,372 INDUSTRIAL MACHINERY - 1.40% AGCO Corp. * 14,248 286,955 Cooper Cameron Corp. * 10,203 475,460 Donaldson Company, Inc. 8,196 484,875 Flowserve Corp. * 10,442 218,029 FMC Technologies, Inc. * 12,517 291,646 Graco, Inc. 8,691 348,509 Grant Prideco, Inc. * 22,944 298,731 Kennametal, Inc. 6,812 270,777 Tecumseh Products Company, Class A 3,492 169,117 ---------- 2,844,099 INDUSTRIALS - 0.52% Fastenal Company 14,338 716,040 Harsco Corp. 7,720 338,290 ---------- 1,054,330 INSURANCE - 4.71% Allmerica Financial Corp. 10,022 308,377 American Financial Group, Inc. * (a) 13,795 365,016 Amerus Group Company (a) 7,403 258,883 Arthur J. Gallagher & Company 17,021 553,012 Brown & Brown, Inc. (a) 12,972 423,017 Everest Re Group, Ltd. 10,518 889,823 Fidelity National Financial, Inc. 28,015 1,086,422 First American Corp. 14,784 440,120 HCC Insurance Holdings, Inc. 12,056 383,381 Horace Mann Educators Corp. 8,073 112,780 Mony Group, Inc. (a) 8,916 278,982 Ohio Casualty Corp. * (a) 11,515 199,900 Old Republic International Corp. 34,260 868,833 Protective Life Corp. 13,023 440,698 Radian Group, Inc. 17,744 865,020 Stancorp Financial Group, Inc. 5,517 346,909 The PMI Group, Inc. 17,944 668,055 Unitrin, Inc. (a) 12,769 528,764 W.R. Berkley Corp. 15,757 550,707 ---------- 9,568,699 INTERNATIONAL OIL - 0.44% Weatherford International, Ltd. * 24,590 885,240 ---------- INTERNET SERVICE PROVIDER - 0.16% Avocent Corp. * 8,863 323,677 ---------- INTERNET SOFTWARE - 0.75% Checkfree Corp. * (a) 15,047 416,050 Internet Security Systems, Inc. * 9,408 177,153 Macromedia, Inc. * 11,830 211,047 Networks Associates, Inc. * 30,507 458,825 Retek, Inc. * 10,326 95,825 RSA Security, Inc. * (a) 11,373 161,497 ---------- 1,520,397 INVESTMENT COMPANIES - 0.17% Raymond James Financial, Inc. * 9,189 346,425 ---------- LEISURE TIME - 0.40% Callaway Golf Company (a) 14,278 240,584 International Speedway Corp., Class A 10,057 449,146 Six Flags, Inc. * (a) 17,502 131,615 ---------- 821,345 MANUFACTURING - 1.20% Carlisle Companies, Inc. 5,832 354,935 Lancaster Colony Corp. 6,758 305,191 Nordson Corp. 6,405 221,165 Pentair, Inc. 9,331 426,427 SPX Corp. * 14,394 846,511
The accompanying notes are an integral part of the financial statements. 255 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- MANUFACTURING - CONTINUED York International Corp. 7,572 $ 278,650 ---------- 2,432,879 MEDICAL-HOSPITALS - 0.87% Community Health Systems, Inc. * 18,612 494,707 Lifepoint Hospitals, Inc. * (a) 7,122 209,743 Triad Hospitals, Inc. * 14,234 473,565 Universal Health Services, Inc., Class B 10,956 588,556 ---------- 1,766,571 METAL & METAL PRODUCTS - 0.26% Precision Castparts Corp. 11,717 532,069 ---------- NEWSPAPERS - 0.88% Lee Enterprises, Inc. 8,425 367,751 Washington Post Company, Class B 1,801 1,425,312 ---------- 1,793,063 OFFICE FURNISHINGS & SUPPLIES - 0.40% Herman Miller, Inc. * 13,779 334,416 HON Industries, Inc. 11,002 476,607 ---------- 811,023 PAPER - 0.45% Bowater, Inc. * 10,469 484,819 P.H. Glatfelter Company 8,271 102,974 Potlatch Corp. (a) 5,433 188,906 Wausau-Mosinee Paper Corp. * 9,742 131,712 ---------- 908,411 PETROLEUM SERVICES - 1.88% ENSCO International, Inc. 28,322 769,509 Pride International, Inc. * 25,632 477,781 Smith International, Inc. * 18,919 785,517 Tidewater, Inc. 11,447 342,036 Valero Energy Corp. 22,727 1,053,169 Varco International, Inc. * 18,443 380,479 ---------- 3,808,491 PHARMACEUTICALS - 3.61% Barr Laboratories, Inc. * 12,701 977,342 Gilead Sciences, Inc. * 38,267 2,224,843 Ivax Corp. * 37,120 886,426 Mylan Laboratories, Inc. 50,804 1,283,309 Pharmaceutical Resources, Inc. * 6,429 418,849 Sepracor, Inc. * 16,042 383,885 SICOR, Inc. * 22,493 611,810 Valeant Pharmaceuticals International * 15,701 394,880 Vertex Pharmaceuticals, Inc. * (a) 14,683 150,207 ---------- 7,331,551 POLLUTION CONTROL - 0.56% Republic Services, Inc. 29,935 767,234 Stericycle, Inc. * 7,951 371,312 ---------- 1,138,546 PUBLISHING - 0.40% Media General, Inc., Class A 4,446 289,435 Readers Digest Association, Inc., Class A 18,694 274,054 Scholastic Corp. * 7,432 252,985 ---------- 816,474 RAILROADS & EQUIPMENT - 0.13% GATX Corp. (a) 9,290 259,934 ---------- REAL ESTATE - 1.58% AMB Property Corp., REIT 15,448 507,930 Highwoods Properties, Inc., REIT 10,040 255,016 Hospitality Properties Trust, SBI * 11,827 488,219 Liberty Property Trust, REIT (a) 15,140 588,946 Mack-California Realty Corp., REIT * 11,015 458,444 New Plan Realty Trust, Inc. * 18,466 455,556 United Dominion Realty Trust, Inc., REIT 23,988 460,570 ---------- 3,214,681 RETAIL GROCERY - 0.45% Ruddick Corp. 8,746 156,553 Whole Foods Market, Inc. 11,319 759,845 ---------- 916,398 RETAIL TRADE - 4.59% 99 Cents Only Stores * (a) 13,622 370,927 Abercrombie & Fitch Company, Class A * 18,273 451,526 American Eagle Outfitters, Inc. * 13,452 220,613 Barnes & Noble, Inc. * 12,588 413,516 BJ's Wholesale Club, Inc. * 13,182 302,659 Borders Group, Inc. 14,628 320,646 CarMax, Inc. * 19,583 605,702 Chico's FAS, Inc. * 16,463 608,308 Claire's Stores, Inc. 18,490 348,352 Dollar Tree Stores, Inc. * 21,750 653,805 Longs Drug Stores Corp. * 7,078 175,110 Michael's Stores, Inc. 12,662 559,660 Payless ShoeSource, Inc. * 12,860 172,324 PETsMART, Inc. 27,029 643,290 Pier 1 Imports, Inc. 16,806 367,379 Rent-A-Center, Inc. * 15,287 456,775 Ross Stores, Inc. 27,254 720,323 Saks, Inc. * 25,911 389,701 The Neiman Marcus Group, Inc., Class A * 9,245 496,179 United Rentals, Inc. * 14,560 280,426 Williams-Sonoma, Inc. * 22,065 767,200 ---------- 9,324,421 SEMICONDUCTORS - 3.74% Atmel Corp. * 89,089 535,425 Credence Systems Corp. * (a) 11,996 157,867 Cree, Inc. * (a) 14,023 248,067 Cypress Semiconductor Corp. * (a) 22,725 485,406 Fairchild Semiconductor International, Inc. * 22,250 555,582 Integrated Circuit Systems, Inc. * 13,632 388,376 Integrated Device Technology, Inc. * 19,810 340,138 International Rectifier Corp. * 12,150 600,331 Intersil Corp., Class A 26,255 652,437 Lam Research Corp. * 24,659 796,486 Lattice Semiconductor Corp. * (a) 21,311 206,290 LTX Corp. * 9,903 148,842 Micrel, Inc. * 17,413 271,295 Microchip Technology, Inc. 39,199 1,307,679 Semtech Corp. * 13,948 317,038 Silicon Laboratories, Inc. * 9,402 406,354 Triquint Semiconductor, Inc. * 25,367 179,345 ---------- 7,596,958 SOFTWARE - 0.71% Activision, Inc. * 16,757 304,977 Advent Software, Inc. * (a) 6,194 107,962 Ascential Software Corp. * 11,225 291,064 Keane, Inc. * 12,105 177,217 Macrovision Corp. * 9,246 208,867 McDATA Corp., Class A * (a) 21,808 207,830 Transaction Systems Architects, Inc., Class A * 6,734 152,391 ---------- 1,450,308 STEEL - 0.06% Carpenter Technology Corp. 4,223 124,874 ---------- TELECOMMUNICATIONS EQUIPMENT & SERVICES - 0.97% ADTRAN, Inc. 14,952 463,512 Advanced Fibre Communications, Inc. * 16,426 330,984
The accompanying notes are an integral part of the financial statements. 256 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - CONTINUED Commscope, Inc. * 11,200 $ 182,896 Newport Corp. * 7,369 121,809 Plantronics, Inc. * 8,394 274,064 Polycom, Inc. * 18,743 365,863 Powerwave Technologies, Inc. * (a) 11,929 91,257 Price Communications Corp. * 10,220 140,321 ------------ 1,970,706 TELEPHONE - 0.35% Cincinnati Bell, Inc. * (a) 46,152 233,067 Harris Corp. 12,584 477,563 ------------ 710,630 TIRES & RUBBER - 0.07% Bandag, Inc. 3,638 149,886 ------------ TOBACCO - 0.10% Universal Corp. 4,723 208,615 ------------ TRANSPORTATION - 0.91% Alexander & Baldwin, Inc. 7,902 266,218 C. H. Robinson Worldwide, Inc. 15,958 604,968 Expeditors International of Washington, Inc. 19,839 747,137 Overseas Shipholding Group, Inc. (a) 6,738 229,429 ------------ 1,847,752 TRUCKING & FREIGHT - 0.74% CNF, Inc. 9,396 318,525 EGL, Inc. * (a) 8,947 157,109 Hunt (JB) Transport Services, Inc. * 15,123 408,472 Swift Transportation, Inc. * 15,800 332,116 Werner Enterprises, Inc. 15,071 293,734 ------------ 1,509,956 TOTAL COMMON STOCK (Cost: $162,519,333) $182,865,008 ------------
PRINCIPAL AMOUNT VALUE ----------- ------------ SHORT TERM INVESTMENTS - 8.63% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $15,125,107 $ 15,125,107 Federal National Mortgage Association Discount Notes, Series BB, 1.05% due 01/15/2004 1,000,000 999,592 United States Treasury Bills, 0.83% due 01/22/2004 **** 300,000 299,855 United States Treasury Bills, 0.87% due 01/22/2004 **** 200,000 199,898 United States Treasury Bills, 0.89% due 01/22/2004 **** 100,000 99,948 United States Treasury Bills, 0.90% due 01/22/2004 **** 400,000 399,790 United States Treasury Bills, 0.93% due 01/22/2004 **** 100,000 99,946 United States Treasury Bills, 0.935% due 01/22/2004 **** 300,000 299,836 ------------ $ 17,523,972 REPURCHASE AGREEMENTS - 1.33% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at 2,696,105 on 01/02/2004, collateralized by $1,930,000 U.S. Treasury Bonds, 8.50% due 2/15/2020 (valued at $2,756,281 including interest) $2,696,000 $ 2,696,000 ------------ TOTAL INVESTMENTS (MID CAP INDEX TRUST) (Cost: $182,739,305) $203,084,980 ============
TOTAL STOCK MARKET INDEX TRUST
SHARES VALUE ------ ---------- COMMON STOCK - 91.15% ADVERTISING - 0.25% aQuantive, Inc. * 786 $ 8,056 DoubleClick, Inc. * 1,664 17,006 FindWhat.com * (a) 233 4,369 Getty Images, Inc. * 622 31,181 Grey Global Group, Inc. (a) 15 10,246 Lamar Advertising Company * 1,061 39,596 Monster Worldwide, Inc. * 1,345 29,536 Omnicom Group, Inc. * 2,279 199,025 The Interpublic Group of Companies, Inc. 4,621 72,088 ValueClick, Inc. * 964 8,753 Ventiv Health, Inc. * 406 3,715 ---------- 423,571 AEROSPACE - 1.45% AAR Corp. * 419 6,264 Alliant Techsystems, Inc. * 400 23,104 Aviall Inc. * 369 5,723 BE Aerospace, Inc. * 640 3,456 Curtiss Wright Corp. 208 9,362 DRS Technologies, Inc. * 326 9,056 Ducommun, Inc. * 200 4,470 EDO Corp. * 214 5,275 Esterline Technologies Corp. * 262 6,987 Fairchild Corp. * 698 3,518 GenCorp, Inc. 669 7,205 General Dynamics Corp. 2,348 212,236 Goodrich Corp. * 1,389 41,239 Heico Corp., Class A * 314 4,421 Honeywell International, Inc. 10,125 338,479 Innovative Solutions & Support, Inc. * 200 3,248 Integral Systems, Inc. * 200 4,304 Lockheed Martin Corp. 5,322 273,551 Moog, Inc., Class A * 136 6,718 Mtc Technologies, Inc. * 167 5,381 Northrop Grumman Corp. 2,084 199,230 Orbital Sciences Corp., Class A * (a) 629 7,561 Raytheon Company * 4,813 144,582 Rockwell Collins, Inc. 2,047 61,471 Sequa Corp., Class A * 142 6,958 Teledyne Technologies, Inc. * 462 8,709 Textron, Inc. * 1,580 90,155 The Boeing Company * 9,905 417,397 Triumph Group, Inc. * 169 6,152 United Defense Industries, Inc. * 280 8,926 United Industrial Corp. 211 3,809 United Technologies Corp. 5,519 523,036 Woodward Governor Company 125 7,104 ---------- 2,459,087
The accompanying notes are an integral part of the financial statements. 257 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ -------- AGRICULTURE - 0.17% Alico, Inc. 140 $ 4,866 Archer-Daniels-Midland Company 7,549 114,896 Bunge, Ltd. 1,117 36,772 Delta & Pine Land Company 434 11,023 Fresh Del Monte Produce, Inc. * (a) 599 14,274 Maui Land & Pineapple, Inc. * 124 4,288 Monsanto Company 3,056 87,952 Omega Protein Corp. * 470 3,628 Tejon Ranch Company * 168 6,890 -------- 284,589 AIR FREIGHT - 0.01% ExpressJet Holdings, Inc. * 634 9,510 -------- AIR TRAVEL - 0.17% Airtran Holdings, Inc. * (a) 1,021 12,150 Alaska Air Group, Inc. * 307 8,378 America West Holding Corp., Class B * (a) 434 5,382 Atlantic Coast Airlines Holdings, Inc. * 565 5,593 Continental Airlines, Inc., Class B * (a) 789 12,837 Delta Air Lines, Inc. * (a) 1,516 17,904 Frontier Airlines, Inc. * 412 5,875 JetBlue Airways Corp. * (a) 1,127 29,888 Mair Holdings, Inc. * 500 3,640 Mesa Air Group, Inc. * (a) 426 5,334 Northwest Airlines Corp., Class A * (a) 1,094 13,806 SkyWest, Inc. * 653 11,832 Southwest Airlines Company * 9,204 148,553 -------- 281,172 ALUMINUM - 0.23% Alcoa, Inc. 9,964 378,632 Century Aluminum Company 318 6,045 MAXXAM, Inc. * (a) 193 3,658 -------- 388,335 APPAREL & TEXTILES - 0.53% Bebe Stores, Inc. * (a) 317 8,239 Brown Shoe, Inc. * 196 7,434 Cherokee Inc. (a) 185 4,207 Cintas Corp. 1,962 98,355 Coach, Inc. * 2,183 82,408 Columbia Sportswear Company * 439 23,926 Culp, Inc. * 300 3,270 Deckers Outdoor Corp. * (a) 200 4,100 DHB Industries, Inc. * (a) 600 4,200 Ellis Perry International, Inc. * 123 3,171 G & K Services, Class A * 254 9,335 Goodys Family Clothing, Inc. 451 4,221 Guess, Inc. * 592 7,145 Hartmarx Corp. * 814 3,394 Interface, Inc., Class A * 892 4,933 Jones Apparel Group, Inc. 1,468 51,718 Jos. A. Bank Clothiers, Inc. * (a) 70 2,428 K-Swiss, Inc., Class A 458 11,019 Kellwood Company 300 12,300 Liz Claiborne, Inc. 1,263 44,786 Maxwell Shoe, Inc. * (a) 263 4,463 Mohawk Industries, Inc. * 815 57,490 Movado Group, Inc. 178 5,025 NIKE, Inc., Class B 3,084 211,131 Oakley, Inc. (a) 858 11,875 Oshkosh B'Gosh, Inc., Class A 200 4,292 Oxford Industries, Inc. * (a) 100 3,388 Phillips Van Heusen Corp. 449 7,965 Polo Ralph Lauren Corp., Class A 539 15,523 Quaker Fabric Corp. 407 3,867 Quiksilver, Inc. * 640 11,347 Reebok International, Ltd. 726 28,546 Russell Corp. * 426 7,481 Stage Stores, Inc. * (a) 205 5,720 Stride Rite Corp. 615 6,999 The Gymboree Corp. * 422 7,271 Timberland Company, Class A * 391 20,359 Unifi, Inc. * 854 5,508 Unifirst Corp. * 110 2,608 V.F. Corp. 1,248 53,964 Vans, Inc. * (a) 281 3,206 Warnaco Group, Inc. * 578 9,219 Wellman, Inc. 481 4,911 Weyco Group, Inc. 100 3,365 Wolverine World Wide, Inc. 474 9,660 -------- 895,772 AUTO PARTS - 0.35% Advance Auto Parts, Inc. * 390 31,746 Aftermarket Technology Corp. * 311 4,267 American Axle & Manufacturing Holdings, Inc. * 643 25,990 Arvinmeritor, Inc. 850 20,502 AutoZone, Inc. * 1,070 91,175 BorgWarner, Inc. 279 23,735 Collins & Aikman Corp. * (a) 1,175 5,088 CSK Auto Corp. * 564 10,586 Dana Corp. 1,750 32,112 Delphi Corp. * 6,633 67,723 Federal Signal Corp. 577 10,109 Gentex Corp. 942 41,599 Genuine Parts Company 2,041 67,761 Keystone Automotive Industries, Inc. * 184 4,666 Lear Corp. 818 50,168 LKQ Corp. * 300 5,385 Modine Manufacturing Company 407 10,981 Noble International, Ltd. 200 4,560 O'Reilly Automotive, Inc. * 589 22,594 R & B, Inc. * 317 4,913 Raytech Corp. * 900 2,988 Sports Resorts International, Inc. * (a) 763 3,861 Standard Motor Products, Inc., Class A * 398 4,836 Superior Industries International, Inc. 279 12,142 TBC Corp. * 288 7,433 Tower Automotive, Inc. * 801 5,471 Visteon Corp. 1,670 17,385 -------- 589,776 AUTO SERVICES - 0.05% AutoNation, Inc. * 3,191 58,619 Copart, Inc. * 1,074 17,721 Dollar Thrifty Automotive Group, Inc. * 249 6,459 Lithia Motors, Inc., Class A 178 4,487 Midas, Inc. * (a) 234 3,346 -------- 90,632 AUTOMOBILES - 0.52% Dura Automotive Systems, Inc. * 300 3,831 Ford Motor Company * 21,597 345,552 General Motors Corp. 6,603 352,600 Marine Products Corp. 271 5,095 Monaco Coach Corp. * 352 8,378 Monro Muffler Brake, Inc. * 250 5,002 PACCAR, Inc. 1,372 116,785 Tenneco Automotive, Inc. * 655 4,382 Thor Industries, Inc. 315 17,709
The accompanying notes are an integral part of the financial statements. 258 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- AUTOMOBILES - CONTINUED United Auto Group, Inc. 456 $ 14,273 ---------- 873,607 BANKING - 6.44% 1St Source Corp. (a) 300 6,453 ABC Bancorp 357 5,701 Abington Bancorp, Inc. * 139 5,364 Alabama National BanCorp 123 6,464 Allegiant Bancorp, Inc. 186 5,217 Amcore Financial, Inc. 345 9,322 American National Bankshares, Inc. (a) 246 6,514 AmSouth BanCorp 3,997 97,926 Anchor BanCorp Wisconsin, Inc. 359 8,939 Associated Banc-Corp. 788 33,608 Astoria Financial Corp. 933 34,708 Banc Corp. (a) 593 5,041 Bancorpsouth, Inc. 842 19,972 BancTrust Financial Group, Inc. (a) 401 6,424 Bank Granite Corp. 218 4,748 Bank Mutual Corp. 1,002 11,413 Bank of America Corp. 17,621 1,417,257 Bank of Hawaii Corp. 644 27,177 Bank of New York Company, Inc. * 9,057 299,968 Bank One Corp. 13,331 607,760 Bankatlantic Bancorp, Inc., Class A 628 11,932 Banknorth Group, Inc. 1,851 60,213 BankUnited Financial Corp., Class A * 400 10,316 Banner Corp. 271 6,816 Bay View Capital Corp. 1,031 2,206 BB&T Corp. 6,335 244,784 Bcsb Bankcorp, Inc. * 321 5,955 BOK Financial Corp. * 676 26,175 Boston Private Financial Holdings, Inc. (a) 239 5,937 Bostonfed Bancorp Inc. 100 3,490 Brookline Bancorp, Inc. 791 12,134 Bryn Mawr Bank Corp. 300 7,347 BSB Bancorp Inc. 221 8,730 Camco Financial Corp. 309 5,355 Capital City Bank Group, Inc. (a) 206 9,474 Capital Corporation of The West * 85 3,369 Capitol Bancorp, Ltd. 247 7,015 Capitol Federal Financial (a) 852 30,723 Cardinal Financial Corp. * (a) 468 3,875 Cascade Financial Corp. 289 5,596 Cathay Bancorp, Inc. * 218 12,138 Cavalry BanCorp, Inc. (a) 363 6,378 CCBT Financial Companies, Inc. * 148 5,173 Center Bancorp, Inc. (a) 237 4,659 Central Coast Bancorp * 334 6,059 Central Pacific Financial Corp. 190 5,708 Century Bancorp, Inc. (a) 101 3,581 CFS Bancorp, Inc. 387 5,743 Charter Financial Corp. (a) 308 11,479 Chemical Financial Corp. 266 9,680 Chittenden Corp. 460 15,474 Citizens Banking Corp. (a) 554 18,127 City National Corp. 578 35,905 CityBank 127 4,128 CNB Florida Bancshares, Inc. 200 4,600 Coastal Bancorp, Inc. 200 8,222 Coastal Financial Corp. 265 4,675 CoBiz, Inc. (a) 320 5,894 Colonial Bancgroup, Inc. 1,418 24,560 Columbia Banking System, Inc. 300 6,498 Comerica, Inc. 2,047 114,755 Commerce Bancorp, Inc. (a) 895 47,149 Commerce Bancshares, Inc. 743 36,402 Commercial Bankshares, Inc. * 209 7,014 Commercial Federal Corp. 551 14,717 Community Banks, Inc. * 125 4,914 Community First Bankshares, Inc. 486 14,065 Community Trust Bancorp, Inc. 161 4,850 Connecticut Bancshares, Inc. 96 4,948 Corus Bankshares, Inc. 284 8,963 Cullen Frost Bankers, Inc. 598 24,261 CVB Financial Corp. 655 12,625 Digital Insight Corp. * (a) 418 10,408 Dime Community Bancorp, Inc. 371 11,412 Doral Financial Corp. 866 27,938 East West Bancorp, Inc. 246 13,205 Eastern Virginia Bankshares, Inc. (a) 106 3,056 ESB Financial Corp. (a) 299 4,901 Exchange National Bancshares, Inc. (a) 109 3,940 F.N.B. Corp. 511 18,115 Farmers Capital Bank Corp. 224 7,618 FFLC Bancorp, Inc. 244 7,015 Fidelity Bankshares, Inc. * 176 5,526 Fidelity Southern Corp. 427 5,658 Fifth Third Bancorp 6,722 397,270 Financial Institutions, Inc. * 201 5,674 First Albany Cos, Inc. 316 4,437 First Bancorp Puerto Rico 515 20,368 First Charter Corp. * (a) 379 7,409 First Citizens Bancshares, Inc. 100 12,153 First Commonwealth Financial Corp. 750 10,695 First Community Bancorp 225 8,132 First Defiance Financial Corp. 166 4,424 First Essex Bancorp, Inc. * 68 3,954 First Financial BanCorp * 647 10,320 First Financial Bankshares, Inc. 150 6,255 First Financial Holdings, Inc. 142 4,439 First Indiana Corp. 305 5,719 First M&F Corp. 196 7,428 First Merchants Corp. 277 7,069 First Midwest Bancorp, Inc. 517 16,756 First Niagara Financial Group, Inc. 887 13,225 First Oak Brook Bancshares, Inc., Class A 211 6,332 First of Long Island Corp. 102 4,386 First Place Financial Corp. (a) 242 4,726 First Republic Bank (a) 140 5,012 First Sentinel Bancorp, Inc. (a) 400 8,424 First South Bancorp, Inc. (a) 197 7,191 First Tennessee National Corp. 1,425 62,842 First United Corp. 250 6,093 Firstfed America Bancorp, Inc. 213 5,544 FirstMerit Corp. 953 25,702 Flag Financial Corp. * (a) 327 4,218 Flagstar Bancorp, Inc. (a) 748 16,022 FleetBoston Financial Corp. * 12,395 541,042 Florida Banks, Inc. * 246 3,444 Floridafirst Bancorp, Inc. 239 7,911 Flushing Financial Corp. 276 5,045 FMS Financial Corp. * 200 3,600 FNB Corp. of North Carolina * 235 4,977 Foothill Independent Bancorp 200 4,732 Frontier Financial Corp. 204 6,765 Georgia Financial, Inc. 244 8,474 German American Bancorp (a) 340 5,958 Glacier Bancorp, Inc. 209 6,772
The accompanying notes are an integral part of the financial statements. 259 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ------- BANKING - CONTINUED Gold Banc Corporation, Inc. 495 $ 6,960 Golden West Financial Corp. 1,717 177,177 Greater Bay Bancorp (a) 653 18,597 Greater Community Bancorp 299 5,074 Greenpoint Financial Corp. 1,539 54,357 Hancock Holding Company 219 11,951 Hanmi Financial Corp. 199 3,934 Harleysville National Corp. (a) 331 9,963 Heritage Commerce Corp. * 395 4,839 Heritage Financial Corp. 252 5,514 Hibernia Corp., Class A 1,785 41,965 HMN Financial Inc. 169 4,105 Home Federal Bancorp (a) 243 6,848 Hudson City Bancorp, Inc. 2,238 85,447 Hudson River Bancorp, Inc. 155 6,050 Hudson United Bancorp 453 16,738 Huntington Bancshares, Inc. 2,628 59,130 Independence Community Bank Corp. 632 22,733 Independent Bank Corp. - MA 189 5,447 Independent Bank Corp. - MI 289 8,196 Integra Bank Corp. * (a) 296 6,505 Interchange Financial Services Corp. 188 4,756 Investors Financial Services Corp. (a) 820 31,496 Irwin Financial Corp. (a) 340 10,676 Jefferson Bancshares, Inc. (a) 313 4,316 KeyCorp 4,876 142,964 Klamath First Bancorp, Inc. 230 6,104 KNBT Bancorp, Inc. * 403 7,085 Local Financial Corp. * 225 4,689 LSB Bancshares, Inc. 347 6,038 M&T Bank Corp. 1,359 133,590 MAF Bancorp, Inc. 273 11,439 Main Street Banks, Inc. (a) 286 7,579 Marshall & Ilsley Corp. 2,624 100,368 MB Financial, Inc. 271 9,864 Mercantile Bankshares Corp. 873 39,791 Merchants Bancshares, Inc. 254 7,760 Mid-State Bancshares 281 7,149 Midwest Banc Holdings, Inc. (a) 258 5,741 Mutualfirst Financial, Inc. 252 6,386 Nara Bancorp Inc. 198 5,405 NASB Financial, Inc. 129 5,406 National City Corp. 7,153 242,773 National Commerce Financial Corp. 2,370 64,654 National Penn Bancshares, Inc. (a) 356 11,435 Netbank, Inc. 634 8,464 New York Community Bancorp, Inc. 2,251 85,651 Newmil Bancorp Inc. (a) 186 5,403 North Fork BanCorp, Inc. 1,754 70,984 Northern States Financial Corp. 234 6,765 Northern Trust Corp. 2,600 120,692 Northrim Bancorp, Inc. 222 5,095 Northwest Bancorp, Inc. (a) 554 11,833 Ohio Valley Banc Corp. 259 6,864 Old National Bancorp 715 16,338 Oriental Financial Group, Inc. 309 7,944 PAB Bankshares, Inc. (a) 361 5,610 Pacific Capital Bancorp * 359 13,218 Pacific Union Bank 162 4,136 Pamrapo Bancorp, Inc. 275 6,971 Park National Corp. (a) 106 11,994 Parkvale Financial Corp. * 233 6,256 Partners Trust Financial Group 178 6,052 Patriot Bank Corp. 175 5,007 Peapack Gladstone Financial, Corp. (a) 152 4,712 Pennrock Financial Services, Corp. 124 3,854 People's Bank Corp. 720 23,472 Peoples Bancorp 242 5,808 Peoples Financial Corp. 317 5,294 PFF Bancorp, Inc. 168 6,095 Popular, Inc. 1,544 69,387 Princeton National Bancorp, Inc. (a) 241 6,881 PrivateBankcorp, Inc. (a) 122 5,553 Progress Financial Corp. 123 3,793 Prosperity Bancshares, Inc. (a) 300 6,756 Provident Bancorp, Inc. (a) 100 4,700 Provident Bankshares Corp. 287 8,449 Provident Financial Group, Inc. (a) 600 19,170 R & G Financial Corp., Class B 205 8,159 Rainier Pacific Financial Group, Inc. * 300 4,776 Redwood Empire Bancorp * (a) 264 6,904 Republic Bancorp, Inc. 829 11,183 Republic Bancorp, Inc., Class A 300 5,862 Republic Bancshares, Inc. 191 6,011 Riggs National Corp. 388 6,414 Riverview Bancorp, Inc. (a) 394 8,377 S & T Bancorp, Inc. (a) 355 10,615 S Y Bancorp, Inc. 245 5,037 Sandy Spring Bancorp, Inc. (a) 143 5,348 Santander Bancorp 493 12,005 Savannah Bancorp, Inc. 221 6,409 Security Bank Corp. (a) 100 3,150 Shore Bancshares, Inc. 94 3,580 Silicon Valley Bancshares * 390 14,067 Simmons First National Corp., Class A 227 6,333 Sky Financial Group, Inc. 997 25,862 South Financial Group, Inc. 683 19,028 Southtrust Corp. 3,889 127,287 Southwest BanCorp of Texas, Inc. 357 13,869 Southwest Bancorp, Inc. 276 4,935 Sovereign Bancorp, Inc. * 3,467 82,341 State Bancorp, Inc. * 277 6,720 Staten Islands Bancorp, Inc. 744 16,740 Sterling Bancorp 168 4,788 Sterling Bancshares, Inc. 596 7,945 Sterling Financial Corp. - USD 212 5,883 Sterling Financial Corp. - CAD * 222 7,599 Summit Bankshares, Inc. 243 6,770 Summit Financial Corp. (a) 0 3 Sun Bancorp, Inc. (a) 252 4,778 Sun Bancorp, Inc. of New Jersey * 179 4,726 SunTrust Banks, Inc. 3,320 237,380 Susquehanna Bancshares, Inc. 494 12,355 TCF Financial Corp. 811 41,645 Texas Regional Bancshares, Inc., Class A 321 11,877 The Trust Company of New Jersey 283 11,229 Thistle Group Holdings Company 113 2,931 Troy Financial Corp. 105 3,675 TrustCo Bank Corp. * (a) 1,017 13,374 Trustmark Corp. 662 19,377 UCBH Holdings, Inc. 472 18,394 Umpqua Holdings Corp. * (a) 406 8,441 Union Planters Corp. 2,202 69,341 UnionBanCal Corp. 1,682 96,782 United Bankshares, Inc. * 490 15,288 United Community Banks, Inc. * (a) 273 8,982 United National Bancorp 172 6,146 US Bancorp 22,667 675,023
The accompanying notes are an integral part of the financial statements. 260 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- BANKING - CONTINUED Valley National Bancorp * 1,009 29,463 Virginia Commerce Bancorp, Inc. * (a) 114 3,651 W Holding Company, Inc. 853 15,868 Wachovia Corp. 15,658 729,506 Washington Federal, Inc. 726 20,618 Washington Trust Bancorp, Inc. (a) 194 5,083 Waypoint Financial Corp. 451 9,782 Webster Financial Corp. 445 20,408 Wells Fargo & Company 19,800 1,166,022 Wesbanco, Inc. 219 6,064 West Coast Bancorp 311 6,637 Westamerica BanCorp 355 17,644 Westfield Financial, Inc. 178 4,229 WFS Financial, Inc. 452 19,192 Whitney Holding Corp. 430 17,626 Willow Grove Bancorp, Inc. (a) 341 6,056 Wilmington Trust Corp. 717 25,812 Wintrust Financial Corp. (a) 224 10,102 Yardville National Bancorp 161 4,144 Zions BanCorp 1,031 63,231 ---------- 10,919,570 BIOTECHNOLOGY - 1.32% Affymetrix, Inc. * (a) 660 16,243 Amgen, Inc. * 15,214 940,225 Applera Corp. - Celera Genomics Group * 849 11,809 Applera Corp.-Applied Biosystems Group * 2,481 51,381 Arena Pharmaceuticals, Inc. * (a) 533 3,305 Bio-Rad Laboratories, Inc., Class A * 277 15,974 Biogen Idec, Inc. * 3,882 142,780 Cell Therapeutics, Inc. * (a) 451 3,924 Cephalon, Inc. * (a) 602 29,143 Charles River Laboratories International, Inc. * 503 17,268 Chiron Corp. * 2,240 127,658 Ciphergen Biosystems, Inc. * (a) 407 4,575 Digene Corp. * 220 8,822 Discovery Laboratories, Inc. * (a) 593 6,220 Exelixis, Inc. * 946 6,698 Genentech, Inc. * 2,618 244,966 Genvec, Inc. * 900 2,970 Genzyme Corp. * 2,629 129,715 Geron Corp. * (a) 512 5,105 Harvard Bioscience, Inc. * 444 3,952 Human Genome Sciences, Inc. * 1,575 20,869 ICOS Corp. * (a) 798 32,941 Integra LifeSciences Holdings Corp. * 288 8,245 Intermune, Inc. * 377 8,731 Invitrogen Corp. * 549 38,430 Kosan Biosciences, Inc. * 365 3,599 Lexicon Genetics, Inc. * (a) 915 5,389 Martek Biosciences Corp. * (a) 310 20,141 Medarex, Inc. * (a) 1,090 6,791 MedImmune, Inc. * 2,939 74,651 MGI Pharma, Inc. * (a) 342 14,073 Millennium Pharmaceuticals, Inc. * 3,497 65,289 Millipore Corp. * 624 26,863 Molecular Devices Corp. * 217 4,121 Myriad Genetics, Inc. * (a) 337 4,334 Nektar Therapeutics * (a) 709 9,649 Neose Technologies, Inc. * (a) 388 3,570 Neurocrine Biosciences, Inc. * 392 21,380 Progenics Pharmaceuticals, Inc. * 275 5,186 Progress Software Corp. * 424 8,675 Protein Design Labs, Inc. * 1,161 20,782 Regeneration Technologies, Inc. * (a) 368 4,033 Serologicals Corp. * (a) 300 5,580 Sirna Therapeutics, Inc. * (a) 527 2,740 Tanox, Inc. * (a) 542 8,049 Telik, Inc. * (a) 566 13,024 Transkaryotic Therapies, Inc. * 424 6,619 Trimeris, Inc. * (a) 273 5,727 Tularik, Inc. * (a) 847 13,679 ----------- 2,235,893 BROADCASTING - 1.46% Acme Communications, Inc. * 407 3,577 Belo Corp., Class A 1,313 37,210 Citadel Broadcasting Corp. * 264 5,906 Clear Channel Communications, Inc. 7,218 338,019 Cox Radio, Inc., Class A * 450 11,353 Crown Media Holdings, Inc., Class A * 982 8,121 Cumulus Media, Inc., Class A * 576 12,672 Emmis Communications Corp., Class A * 611 16,528 Entercom Communications Corp. * 550 29,128 Entravision Communications Corp., Class A * 943 10,467 Fox Entertainment Group, Inc., Class A * 4,137 120,594 Gray Television, Inc., Common 555 8,392 Hearst Argyle Television, Inc. 626 17,253 Hughes Electronics Corp. * 10,732 177,615 Journal Communications, Inc. 223 4,132 Liberty Media Corp., Series A * 31,713 377,068 Mediacom Communications Corp., Class A * 1,180 10,231 New Frontier Media, Inc. * (a) 300 2,775 NTN Communications, Inc. * 800 2,960 Paxson Communications Corp. * 1,007 3,877 Radio One, Inc., Class A * 1,266 24,750 Regent Communications, Inc. * 706 4,483 Saga Communications, Inc., Class A * 206 3,817 Salem Communications Corp., Class A * 200 5,424 Sinclair Broadcast Group, Inc., Class A * (a) 605 9,027 Sirius Satellite Radio, Inc. * (a) 12,873 40,679 Spanish Broadcasting Systems, Inc., Class A * 478 5,019 UnitedGlobalCom, Inc., Class A * 1,300 11,024 Univision Communications, Inc., Class A * (a) 3,821 151,655 Viacom, Inc., Class B 20,685 918,000 Westwood One, Inc. * 1,185 40,539 World Wrestling Entertainment, Inc., Class A 324 4,244 XM Satellite Radio Holdings, Inc., Class A * (a) 1,831 48,265 Young Broadcasting, Inc., Class A * 200 4,008 ---------- 2,468,812 BUILDING MATERIALS & CONSTRUCTION - 0.22% American Standard Companies, Inc. * 867 87,307 Apogee Enterprises, Inc. 372 4,222 Butler Manufacturing Company 200 4,400 Dycom Industries, Inc. * 555 14,885 ElkCorp 229 6,114 Griffon Corp. * 355 7,192 Haemonetics Corp. * 278 6,641 Hughes Supply, Inc. 267 13,249 Lennox International, Inc. * 686 11,456 LSI Industries, Inc. 365 4,928 Masco Corp. 5,531 151,605 NCI Building Systems, Inc. * 267 6,381 Perini Corp. * 400 3,660 RPM International, Inc. 1,360 22,386 Standard-Pacific Corp. 336 16,313 Trex Company, Inc. * (a) 157 5,963 U.S. Concrete, Inc. * 600 3,870
The accompanying notes are an integral part of the financial statements. 261 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ -------- BUILDING MATERIALS & CONSTRUCTION - CONTINUED WCI Commmunities, Inc. * 531 $ 10,944 -------- 381,516 BUSINESS SERVICES - 2.36% ABM Industries, Inc. 583 10,150 Activcard Corp. * 586 4,618 Acxiom Corp. * 975 18,106 Administaff, Inc. * (a) 330 5,735 Advanced Marketing Services, Inc. 300 3,420 ADVO, Inc. 339 10,767 Affiliated Computer Services, Inc., Class A *, 1,547 84,250 Alliance Data Systems Corp. * 149 4,124 Amerco * 300 6,450 American Management Systems, Inc. * 582 8,771 AMR Corp. * 1,902 24,631 Answerthink Consulting Group * 700 3,885 APAC Customer Services, Inc. * 1,100 2,860 ARAMARK Corp., Class B 1,065 29,202 Arbitron, Inc. * 327 13,642 Automatic Data Processing, Inc. 7,050 279,250 Banta Corp. 275 11,138 BearingPoint, Inc. * 2,285 23,056 Black Box Corp. * (a) 196 9,030 BMC Software, Inc. * 2,708 50,504 Bowne & Company, Inc. 488 6,617 Bright Horizons Family Solutions, Inc. * 161 6,762 Brinks Company 639 14,448 Cadence Design Systems, Inc. * 3,177 57,122 Catalina Marketing Corp. * 640 12,902 CDI Corp. 211 6,910 Cendant Corp. * 11,915 265,347 Central Parking Corp. * (a) 482 7,196 Ceridian Corp. * 1,725 36,121 Certegy, Inc. 828 27,158 Charles River Associates, Inc. * 147 4,703 Charles Schwab Corp. 16,044 189,961 ChoicePoint, Inc. * 1,044 39,766 Clark, Inc. * (a) 296 5,695 Coinstar, Inc. * (a) 270 4,876 Comdisco Holding Company, Inc. 829 448 Compucom Systems, Inc. * 737 3,862 Compucredit Corp. * 578 12,300 Computer Sciences Corp. * 2,248 99,429 Concord EFS, Inc. * 5,761 85,493 Convergys Corp. * 1,677 29,280 Corillian Corp. * 500 3,155 Cornell Corrections, Inc. * 251 3,426 Corporate Executive Board Company * 416 19,415 CoStar Group, Inc. * 222 9,253 CSG Systems International, Inc. * 642 8,019 Deluxe Corp. 547 22,608 DiamondCluster International, Inc., Class A * 453 4,621 Digimarc Corp. * (a) 237 3,152 DST Systems, Inc. * 1,360 56,794 Dun & Bradstreet Corp. * 885 44,878 eFunds Corp. * 620 10,757 Electro Rent Corp. * 374 4,989 Electronic Data Systems Corp. 5,674 139,240 Ennis Business Forms, Inc. * 366 5,600 Entrust Technologies, Inc. * 912 3,721 Equifax, Inc. 1,629 39,910 Euronet Worldwide, Inc. * 368 6,624 FactSet Research Systems, Inc. (a) 377 14,405 First Consulting Group * 600 3,378 First Data Corp. * 8,699 357,442 Fiserv, Inc. * 2,316 91,505 Fluor Corp. * 984 39,006 Forrester Research, Inc. * 285 5,093 FTI Consulting, Inc. * (a) 480 11,218 Gartner Group, Inc., Class A * 1,500 16,965 Gevity HR, Inc. * (a) 275 6,116 Global Payments, Inc. 402 18,942 GP Strategies Corp. * 496 3,968 GSI Commerce, Inc. * 540 5,271 Harte-Hanks, Inc. 1,044 22,707 Healthcare Services Group Inc. 265 5,112 Heidrick & Struggles International, Inc. * (a) 228 4,970 Hewitt Associates, Inc. * 415 12,408 Hudson Highland Group, Inc. * (a) 200 4,770 ICT Group, Inc. * 200 2,350 Information Holdings, Inc. * 264 5,834 Insight Enterprises, Inc. * 538 10,114 Integrated Alarm Services Group * (a) 475 4,038 InterCept, Inc. * (a) 354 3,997 Intervoice Brite, Inc. * (a) 441 5,235 Iron Mountain, Inc. * 1,027 40,608 Jacobs Engineering Group, Inc. * 598 28,710 John H. Harland Company 336 9,173 Kelly Services, Inc., Class A 421 12,015 Kforce.com, Inc. * 423 3,951 Korn/Ferry International * 556 7,417 Kroll, Inc. * 475 12,350 Labor Ready, Inc. * (a) 520 6,812 Lightbridge, Inc. * 492 4,477 Manpower, Inc. 935 44,020 MAXIMUS, Inc. * (a) 253 9,900 McGrath Rentcorp 142 3,870 Memberworks, Inc. * (a) 149 4,048 Mobius Management Systems, Inc. * (a) 300 3,795 Moody's Corp. 1,723 104,328 MPS Group, Inc. * 1,294 12,099 National Processing, Inc. * 608 14,318 Navigant Consulting Company * 540 10,184 NCO Group, Inc. * 323 7,355 NCR Corp. * 1,138 44,154 New England Business Service, Inc. 185 5,458 Paxar Corp. * 554 7,424 Paychex, Inc. 4,426 164,647 PDI, Inc. * 167 4,477 Perot Systems Corp., Class A * 1,356 18,279 Pitney Bowes, Inc. 2,712 110,161 Pre-Paid Legal Services, Inc. * (a) 227 5,929 PRG-Schultz International, Inc. * (a) 902 4,420 Quest Software, Inc. * 1,110 15,762 R.H. Donnelley Corp. * 337 13,426 R.R. Donnelley & Sons Company 1,348 40,642 Rent-Way, Inc. * 500 4,095 Resource America, Inc. 304 4,560 Resources Connection, Inc. * 296 8,084 Rewards Network, Inc. * (a) 287 3,059 Reynolds & Reynolds Company, Class A * 816 23,705 Right Management Consultants, Inc. * 275 5,132 Robert Half International, Inc. * 1,983 46,283 Rollins, Inc. 540 12,177 Roto Rooter, Inc. 107 4,933 Scansource, Inc. * (a) 144 6,569 Seachange International, Inc. * 315 4,851 Service Master Company * 3,475 40,484 Sfbc International, Inc. * 107 2,842
The accompanying notes are an integral part of the financial statements. 262 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- BUSINESS SERVICES - CONTINUED SITEL Corp. * 1,300 $ 3,029 SM&A * 294 3,440 Sonicwall, Inc. * 875 6,825 Sothebys Holdings, Inc., Class A * 828 11,310 Source Interlink Companies * 348 3,696 SOURCECORP, Inc. * 188 4,818 Spherion Corp. * 752 7,362 SRA International, Inc., Class A * 189 8,146 StarTek, Inc. 158 6,445 SunGuard Data Systems, Inc. * 3,324 92,108 Surmodics, Inc. * (a) 231 5,521 Syntel, Inc. (a) 470 11,614 Sypris Solutions, Inc. * 331 5,564 Systems & Computer Technology Corp. * 391 6,393 TALX Corp. (a) 175 4,030 Teletech Holdings, Inc. * 889 10,046 TETRA Technologies, Inc. * 611 15,189 The BISYS Group, Inc. * 1,452 21,606 The Titan Corp. * 998 21,766 Total Systems Services, Inc. (a) 2,272 70,727 TRC Companies, Inc. * (a) 162 3,412 Tyler Technologies, Inc. * 556 5,354 Unisys Corp. * 3,902 57,945 URS Corp. * 421 10,529 Valassis Communications, Inc. * 573 16,818 Viad Corp. * 1,047 26,175 Volt Information Sciences, Inc. * 197 4,452 Wackenhut Corrections Corp. * 146 3,329 Waste Industries USA 379 4,359 Watson Wyatt & Company Holdings * 375 9,056 West Corp. * 845 19,629 Wind River Systems, Inc. * 1,090 9,548 Wireless Facilities, Inc. * 739 10,982 Zomax Optical Media, Inc. * 538 2,685 ---------- 4,005,882 CABLE AND TELEVISION - 1.34% Cablevision Systems New York Group, Class A * (a) 2,627 61,445 Charter Communications, Inc., Class A * (a) 3,583 14,404 Comcast Corp., Class A * 26,500 871,055 Cox Communications, Inc., Class A * 6,947 239,324 EchoStar Communications Corp., Class A * 2,892 98,328 Insight Communications Company, Inc., Class A * 674 6,949 Lin TV Corp. * 259 6,685 LodgeNet Entertainment Corp. * 264 4,826 Time Warner Telecom, Inc., Class A * (a) 604 6,118 Time Warner, Inc. * 53,199 957,050 TiVo, Inc. * (a) 897 6,638 ---------- 2,272,822 CELLULAR COMMUNICATIONS - 0.48% Alamosa Holdings, Inc. * (a) 1,308 5,245 AT&T Wireless Services, Inc. * 32,081 256,327 Dobson Communications Corp., Class A * (a) 1,494 9,816 Nextel Communications, Inc., Class A * 12,941 363,124 Nextel Partners, Inc., Class A * (a) 2,173 29,227 RF Micro Devices, Inc. * (a) 2,258 22,693 Spectrasite, Inc. * (a) 4 168 Sprint Corp. (PCS Group) * 12,342 69,362 Telephone & Data Systems, Inc. 711 44,473 Western Wireless Corp., Class A * (a) 1,023 18,782 ---------- 819,217 CHEMICALS - 1.29% A. Schulman, Inc. * 377 8,038 Aceto Corp. * 200 5,108 Air Products & Chemicals, Inc., 2,666 140,845 Airgas, Inc. 892 19,160 Albany Molecular Research, Inc. * 398 5,978 Albemarle Corp. 449 13,457 AmCol International Corp. 397 8,059 American Vanguard Corp. (a) 100 3,727 Arch Chemicals, Inc. 299 7,672 Ashland, Inc. 771 33,970 Cabot Corp. 762 24,262 Cabot Microelectronics Corp. * (a) 275 13,475 Calgon Carbon Corp. 729 4,527 Cambrex Corp. 343 8,664 Crompton Corp. 1,482 10,626 Cytec Industries, Inc. * 406 15,586 Dow Chemical Company * 10,860 451,450 E.I. Du Pont De Nemours & Company 11,713 537,510 Eastman Chemical Company * 918 36,289 Engelhard Corp. 1,447 43,338 Ethyl Corp. * 225 4,921 Ferro Corp. 464 12,625 FMC Corp. * 408 13,925 Georgia Gulf Corp. * 433 12,505 Glenayre Technologies, Inc. * (a) 1,156 3,110 Great Lakes Chemical Corp. 581 15,797 H.B. Fuller Company 331 9,844 Hawkins, Inc. 395 5,514 Hercules, Inc. * 1,364 16,641 IMC Global, Inc. 1,428 14,180 Landec Corp. * 500 3,305 Lubrizol Corp. * 617 20,065 Lyondell Chemical Company 2,108 35,731 MacDermid, Inc. 380 13,011 Material Sciences Corp. * 400 4,044 Millennium Chemicals, Inc. 783 9,928 Minerals Technologies, Inc. 210 12,443 Nl Industries, Inc. (a) 652 7,628 Olin Corp. 666 13,360 OM Group, Inc. * 402 10,528 Omnova Solutions, Inc. * 859 4,123 Penford Corp. 300 4,119 Polyone Corp. 1,195 7,636 PPG Industries, Inc. 1,931 123,623 Praxair, Inc. 3,628 138,590 Quaker Chemical Corp. * 155 4,766 Rohm & Haas Company 2,620 111,900 Sigma-Aldrich Corp. 846 48,374 Solutia, Inc. 1,525 557 Techne Corp. * 458 17,303 Terra Industries, Inc. * 1,200 3,972 The Scotts Company, Class A * 327 19,345 Valence Technology, Inc. * (a) 1,092 4,204 Valhi, Inc. (a) 1,454 21,752 Valspar Corp. 613 30,294 W. R. Grace & Company * 1,124 2,889 WD-40 Company * 205 7,249 ---------- 2,181,542 COAL - 0.06% Arch Coal, Inc. 582 18,141 CONSOL Energy, Inc. (a) 1,059 27,428 Massey Energy Corp. * 937 19,490 Peabody Energy Corp. 673 28,071
The accompanying notes are an integral part of the financial statements. 263 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- COAL - CONTINUED Penn Virginia Resource Partners LP (a) 158 $ 5,416 ---------- 98,546 COLLEGES & UNIVERSITIES - 0.15% Apollo Group, Inc., Class A * 2,018 137,224 Career Education Corp. * 1,184 47,443 Corinthian Colleges, Inc. * 473 26,280 DeVry, Inc. * 880 22,114 ITT Educational Services, Inc. * 491 23,062 ---------- 256,123 COMMERCIAL SERVICES - 0.00% Providence Service Corp. * 200 3,236 Proxymed, Inc. * (a) 200 3,498 ---------- 6,734 COMPUTERS & BUSINESS EQUIPMENT - 3.36% 3Com Corp. * 4,454 36,389 ADE Corp. * 207 3,834 Advanced Digital Information Corp. * 768 10,752 Aether Systems, Inc. *, 748 3,553 Agilysys, Inc. * (a) 471 5,252 Anteon International Corp. * 378 13,627 Apple Computer, Inc. * 4,280 91,464 Applied Films Corp. * 137 4,524 Avanex Corp. * (a) 1,660 8,283 Benchmark Electronics, Inc. * 423 14,725 Brooks Automation, Inc. * 454 10,973 CACI International, Inc., Class A * 317 15,413 CDW Corp. 1,008 58,222 Cognizant Technology Solutions Corp., Class A * 686 31,309 Computer Network Technology Corp. * (a) 462 4,407 Concurrent Computer Corp. * 930 4,064 Cray, Inc. * 908 9,016 Datastream Systems, Inc. * 400 3,140 Dell, Inc. * 30,294 1,028,784 Diebold, Inc. 879 47,352 Digi International, Inc. * 384 3,686 Dot Hill Systems Corp. * 486 7,363 Echelon Corp. * (a) 548 6,105 Electronics For Imaging, Inc. * 622 16,184 EMC Corp. * (a) 27,135 350,584 EMS Technologies, Inc. * 200 4,108 Enterasys Networks, Inc. * 2,544 9,540 Extreme Networks, Inc. * 1,451 10,462 Fair Isaac Corp. 524 25,760 Falconstor Software, Inc. * (a) 648 5,663 FileNET Corp. * 450 12,186 FSI International, Inc. * (a) 500 3,690 Gateway, Inc. * 3,995 18,377 General Binding, Corp. * 225 4,050 Gerber Scientific, Inc. * 400 3,184 GTECH Holdings Corp. 706 34,940 Helix Technology Corp. 329 6,771 Henry, Jack & Associates, Inc. 1,083 22,288 Hewlett-Packard Company * 35,992 826,736 Hypercom Corp. * 809 3,851 Infocus Corp. * 535 5,179 Ingram Micro, Inc., Class A * 1,763 28,032 Intergraph Corp. * 510 12,199 International Business Machines Corp. 20,412 1,891,784 Iomega Corp. * (a) 883 5,280 Ixia * 790 9,243 Kronos, Inc. * 336 13,309 Lexar Media, Inc. * 961 16,750 Lexmark International, Inc. * 1,499 117,881 Liveperson, Inc. * 500 2,539 Maxtor Corp. * 2,953 32,778 Merge Technologies, Inc. * (a) 181 3,193 Micros Systems, Inc. * 214 9,279 Mindspeed Technologies, Inc. * 1,181 8,090 Mobility Electronics, Inc. * 354 3,165 MTS Systems Corp. * 251 4,827 National Instruments Corp. (a) 563 25,600 Netscout Systems, Inc. * 400 3,040 NetScreen Technologies, Inc. * 133 3,292 Network Appliance, Inc. * 4,059 83,331 Nuance Communications, Inc. * 505 3,858 Oplink Communications, Inc. * 2,068 4,943 Overland Storage, Inc. * 156 2,933 Palmone, Inc. * (a) 615 7,226 PEC Solutions, Inc. * (a) 401 6,797 Phoenix Technology, Ltd. * 407 3,289 Pinnacle Systems, Inc. * 877 7,481 Plexus Corp. * 556 9,546 Pomeroy Computer Resources, Inc. * 200 2,948 Quantum Corp. * 2,332 7,276 Radiant Systems, Inc. * 500 4,205 RadiSys Corp. * 302 5,092 Rainbow Technologies, Inc. * 330 3,716 Rimage Corp. * 280 4,433 Sandisk Corp. * 951 58,144 SCM Microsystems, Inc. * 400 3,088 Seagate Technology, Inc. 898 16,972 SI International, Inc. * (a) 200 3,910 Silicon Graphics, Inc. * (a) 3,180 4,357 Silicon Storage Technology, Inc. * 1,134 12,474 Simpletech, Inc. * 704 4,231 Sonic Solutions * (a) 245 3,748 Standard Microsystems Corp. * 218 5,515 Storage Technology Corp. * 1,304 33,578 Stratasys, Inc. * (a) 129 3,517 Sun Microsystems, Inc. * 38,217 171,594 Sybase, Inc. * 1,138 23,420 Sykes Enterprises, Inc. * 522 4,468 Synaptics, Inc. * 349 5,228 Tech Data Corp. * 720 28,577 Transact Technologies, Inc. * (a) 100 2,420 Transmeta Corp. * (a) 1,828 6,215 Trident Microsystems, Inc. * (a) 200 3,484 Tripath Technology, Inc. * (a) 600 4,140 Virage Logic Corp. * 300 3,051 Western Digital Corp. * 2,492 29,381 Witness Systems, Inc. * (a) 300 2,799 Xerox Corp. * 9,386 129,527 ---------- 5,696,983 CONSTRUCTION MATERIALS - 0.20% Ameron International Corp. 103 3,573 Applied Industrial Technologies, Inc. 200 4,772 Centex Construction Products, Inc. * 216 13,018 Clarcor, Inc. 277 12,216 Comfort Systems USA, Inc. * 700 3,836 EMCOR Group, Inc. * 155 6,805 Florida Rock Industries, Inc. 311 17,058 Forest City Enterprises, Inc. 614 29,171 Granite Construction, Inc. 498 11,698 JLG Industries, Inc. * 577 8,788 Lafarge Corp. 818 33,145 Martin Marietta Materials, Inc. 536 25,176 Regal Beloit Corp. * 316 6,952
The accompanying notes are an integral part of the financial statements. 264 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- CONSTRUCTION MATERIALS - CONTINUED Sherwin-Williams Company 1,633 $ 56,730 Simpson Manufacturing, Inc. * 280 14,241 Standex International Corp. 254 7,112 Trinity Industries, Inc. * (a) 506 15,605 Universal Forest Products, Inc. 199 6,404 USG Corp. * (a) 536 8,882 Vulcan Materials Company 1,199 57,036 ---------- 342,218 CONSTRUCTION & MINING EQUIPMENT - 0.06% A S V, Inc. * 155 5,791 Astec Industries, Inc. * 282 3,460 Buckeye Partners, LP (a) 311 14,104 Carbo Ceramics, Inc. 184 9,430 Dril-Quip, Inc. * 281 4,580 Kaman Corp., Class A * 364 4,634 Layne Christensen Company * 393 4,618 Matrix Service Company * 200 3,630 National Oilwell, Inc. * 1,001 22,382 Parker Drilling Company * 1,768 4,508 Rowan Companies, Inc. * 1,094 25,348 RPC, Inc. 496 5,451 ---------- 107,936 CONTAINERS & GLASS - 0.20% Ball Corp. 602 35,861 Bemis Company, Inc. 622 31,100 Greif Brothers Corp., Class A * 245 8,700 Interpool, Inc. 367 5,321 Jarden Corp. * 338 9,241 Longview Fibre Company 754 9,312 Mobile Mini, Inc. * (a) 186 3,668 Owens-Illinois, Inc. * 1,748 20,784 Packaging Corp. of America 1,165 25,467 Pactiv Corp. * 1,774 42,399 Sealed Air Corp. * 1,038 56,197 Silgan Holdings, Inc. * 201 8,560 Smurfit-Stone Container Corp. 2,888 53,630 Sonoco Products Company 1,103 27,156 West Pharmaceutical Services, Inc. 173 5,865 ---------- 343,261 COSMETICS & TOILETRIES - 1.78% Alberto Culver Company, Class B 703 44,345 Avon Products, Inc. 2,772 187,082 Chattem, Inc. * 247 4,421 Colgate-Palmolive Company 6,376 319,119 Del Labs, Inc. * 152 3,800 Elizabeth Arden, Inc. * 358 7,131 Estee Lauder Companies, Inc., Class A 1,408 55,278 Helen Troy, Ltd. * (a) 346 8,010 Intermediate Parfums, Inc. (a) 277 6,257 International Flavors & Fragrances, Inc. 1,091 38,098 Kimberly-Clark Corp. 5,907 349,045 Natures Sunshine Products, Inc. 431 3,642 Nu Skin Enterprises, Inc., Class A 858 14,663 Playtex Products, Inc. * 841 6,501 Revlon, Inc., Class A * (a) 1,203 2,695 The Gillette Company * 12,053 442,707 The Procter & Gamble Company 15,262 1,524,369 ---------- 3,017,163 CRUDE PETROLEUM & NATURAL GAS - 0.74% Anadarko Petroleum Corp. 2,898 147,827 Apache Corp. 1,840 149,224 Burlington Resources, Inc. 2,369 131,195 Cabot Oil & Gas Corp., Class A 377 11,065 Chesapeake Energy Corp. (a) 2,498 33,923 Cimarex Energy Company * 488 13,025 Devon Energy Corp. 2,711 155,232 EOG Resources, Inc. 1,317 60,806 Fx Energy, Inc. * (a) 750 3,750 Harvest Natural Resources, Inc. * 541 5,383 Helmerich & Payne, Inc. * 627 17,512 Hydril * 336 8,040 Newfield Exploration Company * 566 25,210 Nuevo Energy Company * 291 7,033 Occidental Petroleum Corp. * 4,403 185,983 Patina Oil & Gas Corp. 362 17,734 Patterson-UTI Energy, Inc. * 967 31,834 Pioneer Natural Resources Company * 1,367 43,648 Pogo Producing Company 767 37,046 Quicksilver Resources, Inc. * (a) 327 10,562 Spinnaker Exploration Company * 387 12,488 Sunoco, Inc. 899 45,984 TEPPCO Partners, LP (a) 765 30,830 Unit Corp. * 496 11,681 XTO Energy, Inc. 2,167 61,326 ---------- 1,258,341 DOMESTIC OIL - 0.48% Amerada Hess Corp. * 1,051 55,882 Brigham Exploration Company * 507 4,071 Comstock Resources, Inc. * 441 8,511 Delta Petroleum Corp. * (a) 638 3,873 Denbury Resources, Inc. * 679 9,445 Dorchester Minerals LP 380 7,391 Double Eagle Petroleum & Mining Company * (a) 200 3,004 Encore Aquisition Company * 351 8,652 Energy Partners, Ltd. * 395 5,491 EnergySouth, Inc. 139 4,865 Enterprise Products Partners LP (a) 2,499 61,350 Evergreen Resources, Inc. * (a) 476 15,475 Exploration Company * 500 3,050 Forest Oil Corp. * 667 19,056 Frontier Oil Corp. * (a) 292 5,028 Holly Corp. * (a) 193 5,308 Houston Exploration Company * 405 14,791 KCS Energy, Inc. * 588 6,203 Kerr-McGee Corp. * 1,159 53,882 Magnum Hunter Resources, Inc. * 860 8,179 Marathon Oil Corp. 3,558 117,734 Maverick Tube Corp. * 518 9,971 McMoran Exploration Company * (a) 255 4,781 Meridian Resource Corp. * (a) 717 4,259 Murphy Oil Corp. 1,101 71,906 Noble Energy, Inc. 692 30,746 North Coast Energy, Inc. * 349 3,731 Oil States International, Inc. * 616 8,587 Plains Exploration & Production Company * 517 7,957 Plains Resources, Inc. * 324 5,200 Prima Energy Corp. * 172 6,048 Range Resources Corp. 820 7,749 Remington Oil Gas Corp. * 361 7,108 St. Mary Land & Exploration Company 345 9,832 Stone Energy Corp. * 292 12,395 Sunoco Logistics Partners LP 147 5,424 Swift Energy Company * 392 6,605 Syntroleum Corp. * 700 3,024 TETRA Technologies, Inc. * 261 6,327 Tom Brown, Inc. * 568 18,318 Unocal Corp. * 2,969 109,348
The accompanying notes are an integral part of the financial statements. 265 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- DOMESTIC OIL - CONTINUED Vintage Petroleum, Inc. 816 $ 9,816 Westport Resources Corp. * 832 24,844 Whiting Petroleum Corp. * 200 3,680 Williams Clayton Energy, Inc. * 200 5,814 Wiser Oil Co. * 400 3,380 World Fuel Services Corp. * 140 4,753 -------- 812,844 DRUGS & HEALTH CARE - 0.47% 1 800 Contacts * 176 3,696 Abaxis, Inc. * 228 4,131 Abiomed, Inc. * (a) 388 2,681 Aksys, Ltd. * (a) 426 3,762 ALARIS Medical Systems,Inc. * 915 13,917 Alliance Imaging, Inc. * 800 2,960 ALPHARMA, Inc., Class A * 599 12,040 Andrx Corp. * 811 19,496 Antigenics, Inc. * (a) 547 6,192 Applied Molecular Evolution, Inc. * (a) 241 4,290 Ariad Pharmaceuticals, Inc. * 643 4,790 Arrow International, Inc. 493 12,315 Atherogenics, Inc. * (a) 434 6,488 Atrix Labatories, Inc. * (a) 275 6,611 Beverly Enterprises, Inc. * (a) 1,334 11,459 Biomarin Pharmaceutical, Inc. * (a) 929 7,217 Bone Care International, Inc. * 301 3,835 Bradley Pharmaceuticals, Inc., Class A * (a) 129 3,281 Candela Corp. * 200 3,636 Cardiodynamics International Corp. * (a) 768 4,585 Cell Genesys, Inc. * 489 6,328 Closure Medical Corp. * (a) 157 5,327 CNS, Inc. 362 4,959 Columbia Laboratories, Inc. * (a) 607 3,824 Conmed Corp. * 380 9,044 Corixa Corp. * (a) 846 5,110 Curagen Corp. * 758 5,556 Curis, Inc. * (a) 700 3,150 CV Therapeutics, Inc. * 369 5,410 D & K Wholesale Drug, Inc. 288 3,905 Dade Behring Holdings, Inc. * 440 15,726 Datascope Corp. * 204 7,313 Dendreon Corp. * 586 4,723 Depome, Inc. * (a) 600 4,254 Diversa Corp. * 658 6,087 Dov Pharmaceutical, Inc. * (a) 222 2,990 Drugstore.com, Inc. * (a) 980 5,400 Duane Reade, Inc. * 396 6,700 Dyax Corp. * (a) 400 3,288 Edwards Lifesciences Corp. * 775 23,312 Encysive Pharmaceuticals, Inc. * 603 5,397 Enzo Biochem, Inc. * (a) 384 6,877 Enzon Pharmaceuticals, Inc. * (a) 588 7,056 Eon Labs, Inc. * (a) 493 25,118 Genencor International, Inc. * 710 11,183 Gentiva Health Services, Inc. * (a) 362 4,576 Healthextras, Inc. * 497 6,660 Hillenbrand Industries, Inc. 749 46,483 Hollis Eden Pharmaceuticals * (a) 247 2,719 I-Flow Corp. * (a) 300 4,173 I-STAT Corp. * (a) 352 5,386 IDX Systems Corp. * 361 9,682 ILEX Oncology, Inc. * 451 9,584 Illumina, Inc. * 500 3,525 ImClone Systems, Inc. * (a) 927 36,765 Immucor Corp. * (a) 231 4,710 Immunogen, Inc. * (a) 724 3,656 Immunomedics, Inc. * (a) 718 3,274 Impax Laboratories, Inc. * (a) 650 9,354 Intuitive Surgical, Inc. * 464 7,930 Invacare Corp. * 331 13,363 K-V Pharmaceutical Company, Class A * 631 16,091 Kos Pharmaceuticals, Inc. * (a) 362 15,581 Kyphon, Inc. * 459 11,397 Landauer, Inc. 100 4,078 Luminex Corp. * (a) 431 4,043 Matria Healthcare, Inc. * 200 4,226 Maxim Pharmaceuticals, Inc. * (a) 400 3,560 Maxygen, Inc. * 530 5,634 Medical Action Inc. * 200 3,742 Mentor Corp. (a) 545 13,113 Meridian Bioscience, Inc. 380 3,963 Micro Therapeutics, Inc. * 885 2,859 Nanogen, Inc. * (a) 500 4,505 NDCHealth Corp. 407 10,427 NeoPharm, Inc. * (a) 256 4,690 Neurogen Corp. * 400 3,364 Nutraceutical International Corp. * (a) 267 2,942 Ocular Sciences, Inc. * 286 8,211 Option Care, Inc. * (a) 362 3,866 OraSure Technologies, Inc. * (a) 670 5,333 Orthodontic Centers America, Inc. * (a) 657 5,289 OrthoLogic Corp. * 600 3,678 Parexel International Corp. * 303 4,927 Perrigo Company 906 14,242 Pharmacopeia, Inc. * 366 5,201 Pharmos Corp. * (a) 1,100 3,850 Praecis Pharmaceuticals, Inc. * 726 4,675 Prime Hospitality Corp. * 681 6,946 Quidel Corp. * 460 4,977 Renal Care Group, Inc. * 535 22,042 Resources Care, Inc. * 420 3,402 Rigel Pharmaceuticals, Inc. * (a) 234 4,469 Savient Pharmaceuticals, Inc. * 845 3,895 Seattle Genetics, Inc. * (a) 600 5,148 Sola International, Inc. * 379 7,125 Sunrise Senior Living, Inc. * (a) 230 8,910 Supergen, Inc. * (a) 494 5,434 Synovis Life Technologies, Inc. * (a) 178 3,621 Theragenics Corp. * 608 3,326 Third Wave Technologies, Inc. * 700 3,185 United Surgical Partners International, Inc. * 336 11,249 US Oncology, Inc. * (a) 1,080 11,621 Ventana Medical Systems, Inc. * 200 7,880 Vital Signs, Inc. 141 4,611 Vivus, Inc. * (a) 834 3,161 Zila, Inc. * 800 3,272 Zymogenetics, Inc. * (a) 674 10,447 -------- 805,467 EDUCATIONAL SERVICES - 0.05% eCollege.com * 324 5,981 Education Management Corp. * 770 23,901 Leapfrog Enterprises, Inc., Class A * (a) 394 10,453 Learning Tree International, Inc. * (a) 285 4,956 Princeton Review, Inc. * 492 4,797 Renaissance Learning, Inc. * (a) 392 9,439 Strayer Education, Inc. * 116 12,624 Sylvan Learning Systems, Inc. * 484 13,935 -------- 86,086
The accompanying notes are an integral part of the financial statements. 266 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- --------- ELECTRICAL EQUIPMENT - 2.80% A.O. Smith Corp. 331 $ 11,601 Aaon, Inc. * 216 4,192 American Power Conversion Corp. 2,354 57,555 AMETEK, Inc. 345 16,650 Anaren, Inc. * 315 4,448 Anixter International, Inc. * 427 11,051 Artesyn Technologies, Inc. * 591 5,035 Audiovox Corp., Class A * 329 4,224 AVX Corp. 2,040 33,905 Baldor Electric Company 393 8,980 BEI Technologies, Inc. 223 4,460 Bel Fuse, Inc., Class A 200 5,980 Belden, Inc. * 307 6,475 C & D Technologies, Inc. * 292 5,598 C-COR.net Corp. * 536 5,966 Cable Design Technologies Corp. * (a) 542 4,873 Cohu, Inc. * 258 4,941 Cooper Industries, Ltd., Class A * 1,068 61,869 Craftmade International, Inc. 122 3,201 Diodes, Inc. * 200 3,800 Dupont Photomasks, Inc. * (a) 228 5,504 Emerson Electric Company 4,965 321,484 Encore Wire Corp. * 278 4,923 Energizer Holdings, Inc. * 1,004 37,710 Excel Technology, Inc. * 153 5,028 General Cable Corp. * (a) 531 4,328 General Electric Company 118,057 3,657,406 Genlyte Group, Inc. * 130 7,589 Hubbell, Inc., Class B * 715 31,531 Johnson Controls, Inc. * 1,059 122,971 Lecroy Corp. * 200 3,602 Littelfuse, Inc. * 292 8,415 Magnetek, Inc. * (a) 500 3,295 Methode Electronics, Inc., Class A * 499 6,103 Metrologic Instruments, Inc. * (a) 300 8,100 Molex, Inc. * 2,299 80,212 Optical Cable Corp. * 24 0 Penn Engineering & Manufacturing Corp. * 248 4,719 Plug Power, Inc. * (a) 995 7,214 Powell Industries, Inc. * 160 3,064 Power-One, Inc. * 1,011 10,949 Preformed Line Products Company * (a) 94 2,704 Rayovac Corp. * (a) 447 9,365 Symbol Technologies, Inc. 2,754 46,515 Tektronix, Inc. 1,037 32,769 Ultralife Batteries, Inc. * (a) 212 2,625 Universal Electronics, Inc. * 366 4,663 Vicor Corp. * 590 6,732 W.H. Brady Company, Class A 276 11,247 Watsco, Inc. 271 6,160 Wesco International, Inc. * 541 4,788 Wilson Greatbatch Technologies, Inc. * (a) 245 10,356 Woodhead Industries, Inc. 222 3,752 --------- 4,740,627 ELECTRIC UTILITIES - 1.94% Allegheny Energy, Inc. * 1,556 19,855 ALLETE, Inc. 994 30,416 Alliant Corp. 1,293 32,196 Ameren Corp. 1,833 84,318 American Electric Power, Inc. 4,650 141,871 Avista Corp. 620 11,234 Black Hills Corp. 371 11,067 CenterPoint Energy, Inc. (a) 3,658 35,446 Central Vermont Public Service Corp. * 200 4,700 CH Energy Group, Inc. * (a) 201 9,427 Cinergy Corp. 2,086 80,958 Cleco Corp. 702 12,622 CMS Energy Corp. (a) 2,035 17,338 Consolidated Edison, Inc. 2,608 112,170 Constellation Energy Group, Inc. 1,903 74,521 Dominion Resources, Inc. 3,817 243,639 DPL, Inc. 1,516 31,654 DTE Energy Company * 1,970 77,618 Duke Energy Corp. * 10,657 217,936 Duquesne Light Holdings, Inc. * (a) 970 17,790 Edison International 3,771 82,698 El Paso Electric Company * 688 9,185 Empire District Electric Company 342 7,500 Entergy Corp. 2,657 151,794 Exelon Corp. 3,845 255,154 FirstEnergy Corp. 3,862 135,942 FPL Group, Inc. 2,174 142,223 Great Plains Energy, Inc. 848 26,983 Green Mountain Power Corp. 191 4,508 Hawaiian Electric Industries, Inc. (a) 433 20,511 IDACORP, Inc. 436 13,045 MGE Energy, Inc. 296 9,327 Northeast Utilities 1,565 31,566 NSTAR 633 30,701 OGE Energy Corp. * 1,046 25,303 Otter Tail Corp. 327 8,741 Pepco Holdings, Inc. 1,993 38,943 PG&E Corp. * 4,855 134,823 Pinnacle West Capital Corp. 1,060 42,421 PNM Resources, Inc. 527 14,809 PPL Corp. 2,014 88,113 Public Service Enterprise Group, Inc. 2,651 116,114 Puget Energy, Inc. * 1,068 25,386 Quanta Services, Inc. * (a) 1,437 10,490 Reliant Resources, Inc. * 3,582 26,364 Sierra Pacific Resources * (a) 1,469 10,782 TECO Energy, Inc. (a) 2,185 31,486 Texas Genco Holdings, Inc. 137 4,453 The AES Corp. * 7,427 70,111 The Southern Company 8,585 259,696 TXU Corp. * 3,811 90,397 UIL Holding Corp. * 174 7,847 Unisource Energy Corp. 446 10,998 Unitil Corp. 294 7,585 Westar Energy, Inc. 935 18,934 Wisconsin Energy Corp. 1,319 44,121 WPS Resources Corp. 429 19,833 --------- 3,295,663 ELECTRONICS - 0.71% Adaptec, Inc. *, 1,393 12,300 Agilent Technologies, Inc. * 5,580 163,159 Amphenol Corp., Class A * 562 35,929 Anadigics, Inc. * (a) 500 2,980 Analogic Corp. * 132 5,412 Ansoft Corp. * 300 3,849 Arrow Electronics, Inc. * 1,200 27,768 Artisan Components, Inc. * (a) 240 4,920 August Technology Corp. * 200 3,710 Avnet, Inc. * 1,404 30,411 Bell Microproducts, Inc. * 400 3,624 Checkpoint Systems, Inc. * 377 7,129 CTS Corp. * 529 6,084
The accompanying notes are an integral part of the financial statements. 267 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ --------- ELECTRONICS - CONTINUED Cubic Corp. (a) 325 $ 7,475 Daktronics, Inc. * 246 6,189 Digital Theater Systems, Inc. * 257 6,345 Electro Scientific Industries, Inc. * 371 8,830 Engineered Support Systems, Inc. 267 14,701 FEI Company * 399 8,978 FLIR Systems, Inc. * 358 13,067 Foundry Networks, Inc. * 1,510 41,314 Franklin Electric, Inc. 132 7,985 Harman International, Inc. 392 29,000 Hutchinson Technology, Inc. * 312 9,591 Identix, Inc. * (a) 1,223 5,442 II-VI, Inc. * 184 4,747 Imation Corp. 386 13,568 Integrated Silicon Solution, Inc. * 352 5,516 Intermagnetics General Corp. * 217 4,809 InVision Technologies, Inc. * (a) 234 7,855 Itron, Inc. * 269 4,939 Jabil Circuit, Inc. * 2,391 67,665 Keithley Instruments, Inc. 229 4,191 Kemet Corp. * 1,077 14,744 L-3 Communications Holdings, Inc. * (a) 1,144 58,756 Manufacturers Services, Ltd. * 607 3,691 Medis Technologies, Ltd. * (a) 359 3,841 Mentor Graphics Corp. * 871 12,664 Mercury Computer Systems, Inc. * 246 6,125 Merix Corp. * (a) 206 5,053 NVE Corp. * 100 5,130 OSI Systems, Inc. * 173 3,323 Park Electrochemical Corp. * 223 5,907 Pemstar, Inc. * 864 2,843 Photon Dynamics, Inc. * (a) 223 8,974 Pixelworks, Inc. * 556 6,138 Planar Systems Inc. * 176 4,280 Rogers Corp. * 204 9,000 Roper Industries, Inc. 347 17,093 Sanmina-SCI Corp. * 6,073 76,581 SBS Technologies, Inc. * 242 3,560 Solectron Corp. * 9,924 58,651 Stoneridge, Inc. * 361 5,433 Superconductor Technologies * 869 4,849 Supertex, Inc. * 200 3,820 Sycamore Networks, Inc. * 3,404 17,837 Synopsys, Inc. * 1,800 60,768 Technitrol, Inc. 501 10,391 Teleflex, Inc. 410 19,815 Thermo Electron Corp. * 1,867 47,048 Thomas & Betts Corp. 724 16,572 Trimble Navigation, Ltd. * 371 13,816 TTM Technologies, Inc. * 485 8,187 Universal Display Corp. * (a) 304 4,156 Varian, Inc. * 379 15,816 Verisity, Ltd. * (a) 276 3,519 Vishay Intertechnology, Inc. * 1,842 42,182 X-Rite, Inc. * 416 4,709 Zebra Technologies Corp., Class A * 506 33,583 Zygo Corp. * 234 3,859 --------- 1,202,196 ENERGY - 0.26% Calpine Corp. * (a) 4,987 23,988 Energen Corp. 346 14,196 Energy East Corp. * 1,651 36,982 Fuelcell Energy, Inc. * (a) 543 7,059 Hanover Compressor Company * (a) 951 10,604 Headwaters, Inc. * (a) 310 6,082 KFx, Inc. * (a) 789 5,957 MDU Resources Group, Inc. 1,262 30,048 New Jersey Resources Corp. 334 12,862 Progress Energy, Inc. 2,839 128,493 Quantum Fuel Systems Technologies Worldwide, Inc. * 500 4,020 Sempra Energy * 2,610 78,457 Southwestern Energy Company * 449 10,731 Xcel Energy, Inc. * 4,669 79,280 --------- 448,759 FINANCIAL SERVICES - 7.20% A.G. Edwards, Inc. * 964 34,926 Accredited Home Lenders Holding Company * (a) 230 7,038 Ace Cash Express, Inc. * (a) 207 4,400 Advanta Corp., Class A 500 6,495 Affiliated Managers Group, Inc. *, 229 15,936 Alliance Capital Management Holding, LP(a) 920 31,050 American Express Company, 15,193 732,758 Americredit Corp. * (a) 1,848 29,439 Ameritrade Holding Corp. * 5,018 70,603 Asta Funding Inc. 100 3,425 Bear Stearns Companies, Inc. 1,175 93,941 Blackrock, Inc., Class A 195 10,356 BNP Residential Properties, Inc. 723 8,394 BP Prudhoe Bay Royalty Trust * (a) 271 7,721 Capital One Financial Corp. 2,687 164,686 Capitalsource Inc. * (a) 270 5,854 Charter Municipal Mortgage Acceptance Company, SBI 572 12,086 Charter One Financial, Inc. 2,546 87,964 Chicago Merchantile Exchange (a) 357 25,833 CIT Group, Inc. 2,517 90,486 Citigroup, Inc. 60,637 2,943,320 Citizens South Banking Corp. 357 4,980 City Holding Company (a) 262 9,170 Commercial Capital Bancorp, Inc. * (a) 307 6,562 Compass Bancshares, Inc. 1,352 53,147 Countrywide Financial Corp. 2,097 159,083 Credit Acceptance Corp. * (a) 538 8,231 Cross Timbers Royalty Trust (a) 220 6,274 Delphi Financial Group, Inc. 334 12,024 Downey Financial Corp. 252 12,424 E*TRADE Financial Corp. * 4,320 54,648 Eaton Vance Corp. 831 30,448 Encore Capital Group, Inc. * 300 4,455 Federal Agricultural Mortgage Corp., Class A * 189 4,228 Federal Home Loan Mortgage Corp. 8,188 477,524 Federal National Mortgage Association 11,440 858,686 Federated Investors, Inc., Class B 1,245 36,553 Financial Federal Corp. * 213 6,507 First Marblehead Corp. * 200 4,376 Firstfed Financial Corp. * 221 9,614 Franklin Resources, Inc. 2,941 153,108 Friedman Billings Ramsey Group, Inc. 1,868 43,113 Fulton Financial Corp. 1,236 27,081 H & R Block, Inc. 2,139 118,436 Harbor Florida Bancshares, Inc. 350 10,399 Hugoton Royalty Trust SBI (a) 450 9,846 Impac Mortgage Holdings, Inc. 624 11,363 IndyMac Bancorp, Inc. 636 18,946 Instinet Group, Inc. * 517 2,663
The accompanying notes are an integral part of the financial statements. 268 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----------- FINANCIAL SERVICES - CONTINUED Interactive Data Corp. * 1,156 $ 19,143 International Bancshares Corp. 394 18,577 Inveresk Research Group Inc. * 452 11,178 Investment Technology Group, Inc. * 565 9,125 Investors Real Estate Trust, SBI * 700 6,930 Ipayment, Inc. * 246 8,364 iStar Financial, Inc. 1,152 44,813 J.P. Morgan Chase & Company * 24,011 881,924 Janus Capital Group, Inc. 2,855 46,851 Jeffries Group, Inc. 601 19,845 Knight Trading Group, Inc. * (a) 1,413 20,686 LaBranche & Company, Inc. (a) 714 8,332 Legg Mason, Inc. 804 62,053 Lehman Brothers Holdings, Inc. 3,194 246,641 Leucadia National Corp. 833 38,401 Liberte Investors, Inc. * 607 4,285 MBIA, Inc. 1,672 99,033 MBNA Corp. 15,105 375,359 Mellon Financial Corp. 5,105 163,922 Merrill Lynch & Company, Inc. 11,032 647,027 Metris Companies, Inc. (a) 894 3,969 Morgan Stanley 12,807 741,141 National Financial Partners Corp. 366 10,083 National Health Realty, Inc., REIT * 460 9,062 NBT Bancorp, Inc. 449 9,627 New Century Financial Corp. (a) 365 14,480 Nuveen Investments, Inc., Class A 1,126 30,019 Ocwen Financial Corp. * 935 8,284 PNC Financial Services Group 3,283 179,679 Portfolio Recovery Associates, Inc. * (a) 212 5,629 Providian Financial Corp. * 3,427 39,890 Regions Financial Corp. 2,508 93,298 Sanders Morris Haris Group, Inc. (a) 462 5,729 Saxon Capital, Inc. * 329 6,893 Seacoast Financial Services Corp. 337 9,237 SEI Investment Company 1,252 38,148 SLM Corp. 5,329 200,797 State Street Corp. (b) 3,933 204,831 Student Loan Corp. 211 30,806 SWS Group, Inc. * 299 5,322 Synovus Financial Corp. 3,580 103,534 T. Rowe Price Group, Inc. (c) 1,452 68,839 Tarragon Realty Investments, Inc. * 281 4,639 The Goldman Sachs Group, Inc. 5,588 551,703 Thornburg Mortgage Asset Corp. 691 18,795 Triad Guaranty, Inc. * 168 8,459 UMB Financial Corp. 273 12,978 United Community Financial Corp. (a) 610 6,960 United Panam Financial Corp. * 193 3,225 Waddell & Reed Financial, Inc., Class A 1,019 23,906 Washington Mutual, Inc. 10,838 434,821 Wesco Financial Corp. 74 26,048 Westcorp, Inc. 590 21,565 World Acceptance Corp. * 271 5,396 ----------- 12,210,881 FOOD & BEVERAGES - 3.10% American Italian Pasta Company, Class A * (a) 176 7,374 Anheuser-Busch Companies, Inc. 9,687 510,311 Bob Evans Farms, Inc. 431 13,990 Bridgford Foods Corp. 500 3,925 Calavo Growers, Inc. (a) 435 4,781 Campbell Soup Company * 4,807 128,828 Chalone Wine Group, Ltd. * (a) 603 5,306 Chiquita Brands International, Inc. * (a) 519 11,693 Coca-Cola Bottling Company 101 5,402 Coca-Cola Enterprises, Inc. 5,262 115,080 ConAgra Foods, Inc. 6,247 164,858 Constellation Brands, Inc., Class A * 1,198 39,450 Corn Products International, Inc. 384 13,229 Dean Foods Company * 1,763 57,950 Del Monte Foods Company * 2,416 25,126 Farmer Brothers Company (a) 19 5,914 Fisher Communications, Inc. * 94 4,794 Flowers Foods, Inc. 525 13,545 General Mills, Inc. * 4,322 195,787 Green Medium Term Note Coffee, Inc. * 200 4,604 H.J. Heinz Company 4,108 149,654 Hain Celestial Group, Inc. * 439 10,189 Hershey Foods Corp. 1,486 114,407 Horizon Organic Holding Corp. * 180 4,311 Hormel Foods Corp. 1,559 40,238 International Multifoods Corp. * 243 4,374 Interstate Bakeries Corp. * 610 8,680 J & J Snack Foods Corp. * 114 4,305 John B. Sanfilippo & Son, Inc. * (a) 100 5,104 Kellogg Company 4,817 183,431 Kraft Foods, Inc., Class A 3,223 103,845 Lance, Inc. 399 5,997 M & F Worldwide Corp. * 300 4,008 McCormick & Company, Inc. 1,566 47,137 National Beverage Corp. * 348 5,672 Nuco2, Inc. * (a) 300 3,801 Peets Coffee & Tea, Inc. * (a) 185 3,221 PepsiAmericas, Inc. 1,674 28,659 PepsiCo, Inc. 20,293 946,060 Performance Food Group Company * 474 17,145 Pilgrims Pride Corp. 389 6,352 Ralcorp Holdings, Inc. * 331 10,380 Riviana Foods, Inc. 172 4,711 Robert Mondavi Corp., Class A * 168 6,525 Sanderson Farms, Inc. 148 5,964 Sara Lee Corp. * 9,198 199,689 Seabord Corp. 15 4,230 Sensient Technologies Corp. 524 10,359 Smithfield Foods, Inc. * 1,290 26,703 Starbucks Corp. * 4,580 151,415 The Coca-Cola Company 29,004 1,471,953 The J.M. Smucker Company 609 27,582 The Pepsi Bottling Group, Inc. * 3,133 75,756 The Steak & Shake Company * 387 6,908 Tootsie Roll Industries, Inc. * 652 23,472 Tyson Foods, Inc., Class A * 4,169 55,198 Usana Health Sciences * (a) 246 7,528 William Wrigley Jr. Company 2,628 147,720 ----------- 5,264,630 FOREST PRODUCTS - 0.12% Caraustar Industries, Inc. * 465 6,417 Deltic Timber Corp. 180 5,472 Rayonier, Inc. 476 19,759 Weyerhaeuser Company * 2,578 164,992 ----------- 196,640 FUNERAL SERVICES - 0.02% Alderwoods Group, Inc. * 600 5,652 Service Corp. International * 3,679 19,830 Stewart Enterprises, Inc., Class A * 1,400 7,952 ----------- 33,434
The accompanying notes are an integral part of the financial statements. 269 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----------- FURNITURE & FIXTURES - 0.07% American Woodmark Corp. 120 $ 6,606 Ethan Allen Interiors, Inc. 390 16,333 Furniture Brands International, Inc. 613 17,979 Kimball International, Inc., Class B 609 9,470 La-Z-Boy, Inc. 658 13,805 Leggett & Platt, Inc. 2,280 49,316 Stanley Furniture Company, Inc. 114 3,591 Steelcase, Inc. * 610 8,760 ----------- 125,860 GAS & PIPELINE UTILITIES - 0.53% AGL Resources, Inc. 717 20,865 American States Water Company 264 6,600 Aquila, Inc. * 2,434 8,251 Atmos Energy Corp. 594 14,434 California Water Service Group 300 8,220 Chesapeake Utilities Corp. * 325 8,466 Dynegy, Inc., Class A (a) 4,598 19,679 El Paso Corp. 7,227 59,189 Equitable Resources, Inc. 710 30,473 Global Industries, Ltd. * 1,499 7,720 Inergy LP (a) 117 5,792 KeySpan Corp. * 1,850 68,080 Kinder Morgan Management LLC * 614 26,378 Kinder Morgan, Inc. 1,414 83,567 Magellan Midstream Partners LP (a) 176 8,800 Markwest Energy Partners LP 146 5,942 Markwest Hydrocarbon, Inc. * 300 3,384 Middlesex Water Company 334 6,780 National Fuel Gas Company 951 23,243 Nicor, Inc. 529 18,007 NiSource, Inc. 3,015 66,149 Northwest Natural Gas Company 373 11,470 NUI Corp. (a) 325 5,239 ONEOK, Inc. 1,062 23,449 Pacific Energy Partners LP (a) 303 8,887 Peoples Energy Corp. (a) 399 16,774 Philadelphia Suburban Corp. 866 19,144 Piedmont Natural Gas, Inc. (a) 370 16,080 Questar Corp. 977 34,342 SCANA Corp. 1,256 43,018 Semco Energy, Inc. 809 3,964 Southern Union Company * 901 16,578 Southwest Gas Corp. 454 10,192 Southwest Water Company (a) 345 5,537 TC Pipelines, LP (a) 272 8,921 Transmontaigne, Inc. * 697 4,496 UGI Corp. 542 18,374 Ultra Petroleum Corp. * 919 22,626 Valero, LP (a) 217 10,800 Vectren Corp. 864 21,298 Western Gas Resources, Inc. * (a) 355 16,774 WGL Holdings, Inc. 538 14,951 Williams Companies, Inc. 6,154 60,432 ----------- 893,365 GOLD - 0.01% Meridian Gold, Inc. * 1,239 18,102 Royal Gold, Inc. (a) 274 5,735 ----------- 23,837 HEALTHCARE PRODUCTS - 2.89% Advanced Medical Optics, Inc. * 393 7,722 Advanced Neuromodulation Systems, Inc. * (a) 230 10,575 Align Technology, Inc. * 715 11,812 American Medical Systems Holdings, Inc. * 426 9,287 Apogent Technologies, Inc. * 1,081 24,906 Arthrocare Corp. * (a) 267 6,541 Aspect Medical Systems, Inc. * 383 4,370 Bausch & Lomb, Inc. * 573 29,739 Baxter International, Inc. * 7,171 218,859 Beckman Coulter, Inc. 751 38,173 Becton Dickinson & Company 2,954 121,528 Biolase Technology, Inc. * (a) 292 4,847 Biomet, Inc. 3,005 109,412 Biosite, Inc. * (a) 208 6,022 Boston Scientific Corp. * 9,712 357,013 Bruker BioSciences Corp. * (a) 1,137 5,173 C.R. Bard, Inc. 649 52,731 Cardia Science Inc. * (a) 1,192 4,756 Coherent, Inc. * 358 8,520 Computer Programs & Systems, Inc. (a) 174 3,501 Conceptus, Inc. * (a) 370 3,929 CTI Molecular Imaging, Inc. * 572 9,672 Cyberonics, Inc. * 282 9,027 Cypress Biosciences, Inc. * (a) 300 4,545 Cytyc Corp. * 1,317 18,122 DENTSPLY International, Inc. 948 42,821 Diagnostic Products Corp. * 315 14,462 DJ Orthopedics, Inc. * 256 6,861 Encore Medical Corp. * 597 4,865 Endocardial Solutions, Inc. * 400 2,880 EPIX Medical, Inc. * 274 4,461 Esperion Therapeutics, Inc. * (a) 401 13,879 Fisher Scientific International, Inc. * 778 32,186 Gen-Probe, Inc. * 577 21,043 Guidant Corp. 3,673 221,115 Hanger Orthopedic Group, Inc. * (a) 283 4,406 Henry Schein, Inc. * 462 31,222 Hologic, Inc. * (a) 265 4,592 ICU Medical, Inc. * (a) 171 5,862 IDEXX Laboratories, Inc. * 374 17,309 IGEN International, Inc. * 271 15,965 INAMED Corp. * 384 18,455 Interpore International, Inc. * (a) 285 3,705 Inverness Medical Innovations, Inc. * (a) 197 4,291 Ivax Diagnostics, Inc. * (a) 600 2,910 Johnson & Johnson 34,945 1,805,259 Kensey Nash Corp. * 156 3,627 LCA-Vision, Inc. * 200 4,234 Lifeline Systems, Inc. * 248 4,712 Medtronic, Inc. 14,307 695,463 Merit Medical Systems, Inc. * 217 4,838 Owens & Minor, Inc. 402 8,808 Patterson Dental Company * 839 53,830 Polymedica Corp. (a) 282 7,419 Priority Healthcare Corp., Class B * 500 12,055 ResMed, Inc. * (a) 364 15,121 Respironics, Inc. * 373 16,819 SonoSite, Inc. * (a) 208 4,459 St. Jude Medical, Inc. * 1,973 121,043 STERIS Corp. * 843 19,052 Stryker Corp. 2,372 201,644 Sybron Dental Specialties, Inc. * 456 12,814 The Cooper Companies, Inc. 343 16,166 The Medicines Company * 542 15,967 Therasense, Inc. * 481 9,764 Thermogenesis Corp. * 800 4,144 Thoratec Corp. * (a) 667 8,678 Tripath Imaging, Inc. * 557 4,345
The accompanying notes are an integral part of the financial statements. 270 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----------- HEALTHCARE PRODUCTS - CONTINUED Varian Medical Systems, Inc. * 834 $ 57,629 Viasys Healthcare, Inc. * 354 7,292 VISX, Inc. * 631 14,608 VitalWorks, Inc. * 745 3,293 Wright Medical Group, Inc. * 409 12,450 Young Innovations, Inc. 117 4,212 Zimmer Holdings, Inc. * 2,669 187,898 Zoll Medical Corp. * (a) 121 4,293 ----------- 4,896,008 HEALTHCARE SERVICES - 1.24% Accredo Health, Inc. * 540 17,069 AdvancePCS * 1,105 58,189 Amedisys, Inc. * 200 3,000 America Service Group, Inc. * 100 3,091 American Healthways, Inc. * (a) 342 8,164 AMERIGROUP Corp. * 320 13,648 AMN Healthcare Services, Inc. * (a) 330 5,663 Apria Healthcare Group, Inc. * 592 16,854 Caremark Rx, Inc. * 3,114 78,878 Cerner Corp. * (a) 405 15,329 CorVel Corp. * 140 5,264 Covance, Inc. * 780 20,904 Coventry Health Care, Inc. * 646 41,661 Cross Country Healthcare Inc. * (a) 477 7,117 Eclipsys Corp. * (a) 592 6,891 Express Scripts, Inc. * 952 63,241 First Health Group Corp. * 1,109 21,581 HCA, Inc. * 5,862 251,832 Health Net, Inc. * 1,359 44,439 Hooper Holmes, Inc. 893 5,519 Humana, Inc. * 1,877 42,889 IMPAC Medical Systems, Inc. * 200 5,112 IMS Health, Inc. 2,819 70,080 Kindred Healthcare, Inc. * 203 10,552 LabOne, Inc. * 203 6,591 Laboratory Corp. of America Holdings * 1,664 61,485 Lincare Holdings, Inc. * 1,168 35,075 Mannatech, Inc. * (a) 400 4,344 McKesson Corp. * 3,458 111,209 Medco Health Solutions, Inc. * 3,170 107,748 Medical Staffing Network Holdings, Inc. * (a) 514 5,628 MedQuist, Inc. * 459 7,372 Mid-Atlantic Medical Services, Inc. * 519 33,631 National Healthcare Corp. * (a) 217 4,318 National Medical Health Card Systems, Inc. * (a) 100 1,770 Neighborcare, Inc. * 452 8,927 Odyssey Healthcare, Inc. * 407 11,909 Omnicare, Inc. 1,207 48,751 Oxford Health Plans, Inc. 998 43,413 Pacificare Health Systems, Inc. * 510 34,476 Pediatrix Medical Group, Inc. * 261 14,378 Quest Diagnostics, Inc. 1,236 90,364 Sierra Health Services, Inc. * (a) 360 9,882 Specialty Laboratories, Inc. * (a) 306 5,138 The Advisory Board Company * 177 6,179 UnitedHealth Group, Inc. 7,018 408,307 US Physical Therapy, Inc. * (a) 197 3,099 Virbac Corp. * 531 3,452 Vistacare, Inc. * 172 6,046 Weight Watchers International, Inc. * 1,247 47,847 Wellchoice, Inc. * (a) 183 6,314 Wellpoint Health Networks, Inc., Class A * 1,694 164,301 ----------- 2,108,921 HOLDINGS COMPANIES/CONGLOMERATES - 0.65% Berkshire Hathaway, Inc., Class A * 13 1,095,250 ----------- HOMEBUILDERS - 0.33% Beazer Homes USA, Inc. (a) 136 13,282 Centex Corp. * 761 81,922 Champion Enterprises, Inc. * (a) 766 5,362 D.R. Horton, Inc. 1,786 77,262 Dominion Homes, Inc. * 110 3,336 Hovnanian Enterprises, Inc., Class A * 322 28,033 KB HOME 495 35,897 Lennar Corp., Class A 894 85,824 Lyon William Homes * (a) 126 7,909 M.D.C. Holdings, Inc. 296 19,092 Meritage Corp. * 114 7,559 NVR, Inc. * 74 34,484 Orleans Homebuilders, Inc. * (a) 194 5,496 Palm Harbor Homes, Inc. * (a) 334 5,969 Pulte Homes, Inc. * 746 69,841 Ryland Group, Inc. 263 23,312 Schottenstein Homes, Inc. * 155 6,053 Toll Brothers, Inc. * 873 34,711 Walter Industries, Inc. 600 8,010 ----------- 553,354 HOTELS & RESTAURANTS - 0.92% Alliance Gaming Corp. * 546 13,459 Ameristar Casinos, Inc. * (a) 334 8,173 Applebee's International, Inc. 653 25,643 Argosy Gaming Corp. * 295 7,667 Aztar Corp. * 370 8,325 Boca Resorts, Inc., Class A * 520 7,779 Boyd Gaming Corp. 810 13,073 Brinker International, Inc. * 1,130 37,471 California Pizza Kitchen, Inc. * 237 4,771 CBRL Group, Inc. 515 19,704 CEC Entertainment, Inc. * 262 12,416 Chicago Pizza & Brewery, Inc. * 359 5,356 Choice Hotels, Inc. 392 13,818 CKE Restaurants, Inc. * (a) 843 5,387 Darden Restaurants, Inc. 1,886 39,682 Extended Stay America, Inc. 1,149 16,638 Frischs Restaurants, Inc. 173 4,982 Harrah's Entertainment, Inc. 1,257 62,561 Hilton Hotels Corp. 4,402 75,406 IHOP Corp. 247 9,505 Jack In the Box, Inc. * 442 9,441 Krispy Kreme Doughnuts, Inc. * (a) 638 23,351 La Quinta Corp. * 2,044 13,102 Landry's Restaurants, Inc. * 346 8,899 Lone Star Steakhouse & Saloon, Inc. * 241 5,586 Luby's Cafeterias, Inc. * 900 3,321 Mandalay Resort Group 728 32,556 Marcus Corp. * 454 7,446 Marriott International, Inc., Class A 2,717 125,525 McDonald's Corp. 15,058 373,890 MGM Mirage * 1,715 64,501 MTR Gaming Group, Inc. * 469 4,831 O'Charley's, Inc. * (a) 270 4,847 Outback Steakhouse, Inc. 859 37,976 P.F. Chang's China Bistro, Inc. * (a) 272 13,839 Panera Bread Company, Class A * (a) 328 12,966 Papa Johns International, Inc. * (a) 213 7,110
The accompanying notes are an integral part of the financial statements. 271 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----------- HOTELS & RESTAURANTS - CONTINUED Park Place Entertainment Corp. * 3,546 $ 38,403 RARE Hospitality International, Inc. * 386 9,434 Red Robin Gourmet Burgers, Inc. * 192 5,845 Ruby Tuesday, Inc. * 774 22,051 Ryan's Family Steak Houses, Inc. * 566 8,569 Sonic Corp. * 430 13,167 Starwood Hotels & Resorts Worldwide, Inc. * 2,363 84,997 Station Casinos, Inc. (a) 621 19,021 The Cheesecake Factory, Inc. * 653 28,752 Triarc Companies, Inc., Class B (a) 764 8,236 Wendy's International, Inc. 1,287 50,502 Wynn Resorts, Ltd. * (a) 431 12,072 Yum! Brands, Inc. * 3,479 119,678 ----------- 1,561,730 HOUSEHOLD APPLIANCES - 0.14% American Real Estate Partners, LP * 589 10,013 Applica, Inc. 400 3,040 Bassett Furniture Industries, Inc. * 345 5,692 Black & Decker Corp. 928 45,769 Consolidated Tomoka Land Company 145 4,742 Drew Industries, Inc. * 168 4,670 International Aluminum Corp. * 180 4,925 Jacuzzi Brands, Inc. * 1,016 7,203 Libbey, Inc. 163 4,642 Lifetime Hoan Corp. (a) 242 4,090 Maytag Corp. 953 26,541 Mestek, Inc. * 191 3,679 Technical Olympic USA, Inc. * 329 9,057 The Stanley Works 1,006 38,097 The Toro Company 249 11,554 Whirlpool Corp. 826 60,009 ----------- 243,723 HOUSEHOLD PRODUCTS - 0.26% Blyth Industries, Inc. 486 15,659 Boyds Collection, Ltd. * 879 3,736 Central Garden & Pet Company * 203 5,690 Church & Dwight, Inc. 422 16,711 Department 56, Inc. * 300 3,930 Dial Corp. 1,106 31,488 Fortune Brands, Inc. 1,656 118,388 Kirklands, Inc. * 249 4,397 Martha Stewart Living Omnimedia, Inc., Class A * 331 3,260 Newell Rubbermaid, Inc. 3,203 72,932 Salton, Inc. * (a) 300 3,915 Select Comfort Corp. * 399 9,879 The Clorox Company 2,538 123,245 Topps, Inc. 611 6,269 Tupperware Corp. * 775 13,439 Water Pik Technology, Inc. * 328 4,025 ----------- 436,963 INDUSTRIAL MACHINERY - 0.83% AGCO Corp. * 907 18,267 Alamo Group, Inc. * 341 5,204 Albany International Corp., Class A 379 12,848 Badger Meter, Inc. 89 3,395 BHA Group Holdings Inc., Class A 170 4,275 Briggs & Stratton Corp. 222 14,963 Caterpillar, Inc. 4,059 336,978 Ceradyne Inc. California * (a) 134 4,564 Circor International, Inc. 238 5,736 Cognex Corp. 490 13,838 Cooper Cameron Corp. * 653 30,430 Cummins, Inc. 452 22,121 Deere & Company * 2,788 181,359 Dionex Corp. * 252 11,597 Donaldson Company, Inc. 465 27,509 Dover Corp. 2,410 95,797 EnPro Industries, Inc. * 284 3,962 Flowserve Corp. * 627 13,092 FMC Technologies, Inc. * 777 18,104 Gardner Denver, Inc. * 183 4,368 Gorman Rupp Company 250 6,600 Graco, Inc. 478 19,168 Grant Prideco, Inc. * 1,504 19,582 IDEX Corp. * 344 14,307 Ingersoll-Rand Company, Class A 1,962 133,181 ITT Industries, Inc. 1,093 81,112 Kadant, Inc. * 285 6,170 Kennametal, Inc. 379 15,065 Lindsay Manufacturing Company 153 3,863 Manitowoc, Inc. 335 10,452 Metropolitan Pro Corp. 347 5,604 Middleby Corp. (a) 100 4,047 NACCO Industries, Inc., Class A 83 7,427 Pall Corp. 1,472 39,494 Parker-Hannifin Corp. 1,379 82,050 Presstek, Inc. * (a) 585 4,253 Quixote Corp. 143 3,491 Robbins & Myers, Inc. * 180 3,418 Rofin Sinar Technologies, Inc. * 150 5,184 Sauer-Danfoss, Inc. * 552 8,942 Stewart & Stevenson Services, Inc. * 394 5,536 Tecumseh Products Company, Class A 185 8,960 Tennant Company 132 5,716 Tredegar Industries, Inc. * 527 8,184 UNOVA, Inc. * 733 16,822 Valmont Industries, Inc. 301 6,968 W.W. Grainger, Inc. 1,063 50,376 Watts Industries, Inc., Class A 336 7,459 ----------- 1,411,838 INDUSTRIALS - 0.11% Crane Company 656 20,165 Fastenal Company (a) 930 46,444 GrafTech International, Ltd. * 1,123 15,161 Harsco Corp. 432 18,930 Intevac, Inc. * 200 2,822 Lawson Products, Inc. 131 4,347 Rockwell Automation, Inc 2,100 74,760 ----------- 182,629 INSURANCE - 4.11% 21St Century Insurance Group * 1,124 15,455 Aetna, Inc. 1,777 120,090 AFLAC, Inc. 6,032 218,238 Alfa Corp. 1,031 13,259 Alleghany Corp. * 73 16,242 Allmerica Financial Corp. 605 18,616 Ambac Financial Group, Inc. 1,253 86,946 American Financial Group, Inc. * (a) 840 22,226 American International Group, Inc. 30,724 2,036,387 American Medical Security Group, Inc. * 179 4,013 American National Insurance Company 264 22,274 American Physicians Capital, Inc. * 234 4,306 Amerus Group Company (a) 494 17,275 Anthem, Inc. * 1,598 119,850 Aon Corp. 3,620 86,663 Arch Cap Group, Ltd. * 304 12,117 Argonaut Group, Inc. * 345 5,361
The accompanying notes are an integral part of the financial statements. 272 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----------- INSURANCE - CONTINUED Arthur J. Gallagher & Company 1,061 $ 34,472 Baldwin & Lyons, Inc., Class B 258 7,239 Brown & Brown, Inc. 838 27,327 CenturyBusiness Services, Inc. * 1,190 5,319 Ceres Group, Inc. * 721 4,211 Ceva, Inc. * (a) 331 3,442 Chubb Corp. 2,246 152,953 CIGNA Corp. * 1,638 94,185 Cincinnati Financial Corp. 1,829 76,598 Citizens, Inc. Class A * 464 4,376 CNA Financial Corp. * 2,629 63,359 CNA Surety Corp. * 665 6,324 Commerce Group, Inc. 354 13,983 Conseco, Inc. * 1,200 26,160 Cotton States Life Insurance Company * (a) 200 3,944 Crawford & Company, Class B 775 5,471 Donegal Group, Inc., Class B (a) 200 3,850 EMC Insurance Group, Inc. 224 4,735 Erie Indemnity Company, Class A 785 33,268 FBL Financial Group, Inc., Class A 339 8,746 Fidelity National Financial, Inc. 1,720 66,702 First American Corp. 883 26,287 FPIC Insurance Group, Inc. * (a) 188 4,717 Fremont General Corp. (a) 882 14,915 Great American Financial Resources, Inc. 561 9,099 Harleysville Group, Inc. 378 7,518 Hartford Financial Services Group, Inc. 3,299 194,740 HCC Insurance Holdings, Inc. 733 23,309 Hilb, Rogal and Hamilton Company (a) 369 11,834 Horace Mann Educators Corp. 548 7,656 Independence Holding Company * 160 3,800 Infinity Property & Casualty Corp. (a) 249 8,229 Jefferson-Pilot Corp. 1,575 79,774 John Hancock Financial Services, Inc. 3,412 127,950 Kansas City Life Insurance Company 156 7,207 Landamerica Financial Group, Inc. 172 8,989 Liberty Corp. 194 8,767 Lincoln National Corp. 2,125 85,786 Loews Corp. 2,163 106,960 Markel Corp. * 100 25,351 Marsh & McLennan Companies, Inc. 6,230 298,355 Mercury General Corp. (a) 581 27,046 MetLife, Inc. 8,885 299,158 MGIC Investment Corp. 1,172 66,734 Midland Company 202 4,771 Mony Group, Inc. (a) 518 16,208 National Western Life Insurance Company, Class A * 35 5,420 Nationwide Financial Services, Inc., Class A * 693 22,911 Navigators Group, Inc. * 144 4,445 Nymagic, Inc. 149 4,086 Odyssey Re Holdings Corp. (a) 708 15,965 Ohio Casualty Corp. * 722 12,534 Old Republic International Corp. 2,034 51,582 Penn America Group, Inc. 324 4,299 Philadelphia Consolidated Holding Corp. * 245 11,963 Phoenix Companies, Inc. (a) 1,168 14,063 PICO Holdings, Inc. * 315 4,936 PMA Capital Corp., Class A * (a) 700 3,584 Presidential Life Corp. * 432 5,685 Principal Financial Group, Inc. 3,821 126,360 ProAssurance Corp. * 347 11,156 Progressive Corp. 2,580 215,662 Protective Life Corp. 809 27,377 Prudential Financial, Inc. 6,358 265,574 Radian Group, Inc. 1,112 54,210 Reinsurance Group of America, Inc. 736 28,446 RLI Corp. 292 10,938 SAFECO Corp. * 1,573 61,237 Safety Insurance Group Inc. 228 3,901 Selective Insurance Group, Inc. 302 9,773 Stancorp Financial Group, Inc. 279 17,544 State Auto Financial Corp. 463 10,830 Stewart Information Services Corp. 161 6,529 The Allstate Corp. 8,279 356,163 The PMI Group, Inc. 1,057 39,352 The St. Paul Companies, Inc. * 2,670 105,865 Torchmark, Inc. 1,303 59,339 Transatlantic Holdings, Inc. 637 51,470 Travelers Property Casualty Corp., Class B 11,861 201,281 UICI * 611 8,114 United Fire & Casualty Company 121 4,884 United States I Holdings Corp. * 584 7,621 Unitrin, Inc. 843 34,909 Universal American Financial Corp. * 734 7,274 UNUMProvident Corp. 3,471 54,738 Vesta Insurance Group, Inc. (a) 900 3,465 W.R. Berkley Corp. 972 33,971 White Mountains Insurance Group, Ltd. 95 43,695 Zenith National Insurance Corp. * (a) 195 6,347 ----------- 6,970,640 INTERNATIONAL OIL - 0.35% APCO Argentina, Inc. 152 4,046 ATP Oil & Gas Corp. * (a) 500 3,140 Callon Petroleum Company * (a) 400 4,148 ConocoPhillips 8,002 524,691 Weatherford International, Ltd. * 1,505 54,180 ----------- 590,205 INTERNET CONTENT - 0.29% Alloy, Inc. * (a) 658 3,428 Ask Jeeves, Inc. * (a) 645 11,687 Autobytel, Inc. * 543 4,930 CMGI, Inc. * 5,221 9,293 CNET Networks, Inc. * 1,795 12,242 Harris Interactive, Inc. * 776 6,441 InfoSpace, Inc. * 371 8,552 ITXC Corp. * (a) 700 3,024 Marketwatch Common, Inc. * (a) 440 3,788 Navisite, Inc. * (a) 400 2,628 NetFlix, Inc. * (a) 259 14,165 Netratings, Inc. * 537 6,138 ProQuest Company * (a) 341 10,042 Safeguard Scientifics, Inc. * 1,669 6,743 Schawk, Incorporated, Class A 336 4,580 WebMD Corp. * (a) 3,713 33,380 Yahoo!, Inc. * 7,717 348,577 ----------- 489,638 INTERNET RETAIL - 0.62% 1-800-Flowers.com, Inc. * 408 4,513 Amazon.com, Inc. * 4,771 251,145 eBay, Inc. * 7,631 492,886 FreeMarkets, Inc. * 676 4,522 FTD, Inc. * (a) 177 4,361 InterActiveCorp * (a) 7,644 259,361 NetIQ Corp. * 759 10,057 Overstock.com Inc. * (a) 203 4,032 Priceline.com, Inc. * (a) 532 9,523
The accompanying notes are an integral part of the financial statements. 273 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- INTERNET RETAIL - CONTINUED Stamps.com, Inc. * 755 $ 4,681 ---------- 1,045,081 INTERNET SERVICE PROVIDER - 0.06% Avocent Corp. * 512 18,698 Digitas, Inc. * 777 7,242 Earthlink, Inc. * 2,020 20,200 eSPEED, Inc., Class A * 436 10,207 HomeStore.com, Inc. * (a) 1,647 7,790 Internap Network Services Corp. * 2,218 5,434 Neoforma, Inc. * (a) 349 3,714 Net2Phone, Inc. * 690 4,692 Register.com, Inc. * 780 4,095 TriZetto Group, Inc. * 729 4,702 United Online, Inc. * (a) 818 13,734 ---------- 100,508 INTERNET SOFTWARE - 1.54% Agile Software Corp. * 701 6,940 Akamai Technologies, Inc. * (a) 1,437 15,448 Ariba, Inc. * (a) 3,472 10,416 Centillium Communications, Inc. * 541 3,046 Checkfree Corp. * (a) 977 27,014 Chordiant Software, Inc. * (a) 943 5,139 Cisco Systems, Inc. * 82,637 2,007,253 Covad Communications Group, Inc. * 2,800 10,080 Digital River, Inc. * 368 8,133 E.piphany, Inc. * 1,056 7,614 eResearch Technology, Inc. * (a) 404 10,257 F5 Networks, Inc. * 472 11,847 Internet Security Systems, Inc. * 637 11,995 Interwoven, Inc. * 544 6,870 Juniper Networks, Inc. * (a) 4,523 84,490 Keynote Systems, Inc. * (a) 275 3,273 Lionbridge Technologies, Inc. * 592 5,689 Macromedia, Inc. * 800 14,272 Matrixone, Inc. * 705 4,343 Netegrity, Inc. * (a) 518 5,341 Netopia, Inc. * (a) 300 4,374 Networks Associates, Inc. * 1,957 29,433 NIC, Inc. * 779 6,255 Openwave Systems, Inc. * 751 8,261 PC-Tel, Inc. * 364 3,862 Portal Software, Inc. * 600 4,038 RealNetworks, Inc. * 2,083 11,894 Retek, Inc. * 782 7,257 RSA Security, Inc. * (a) 717 10,181 S1 Corp. * 945 7,607 Safenet Inc. * 173 5,323 Sapient Corp. * 1,594 8,926 Stellent, Inc. * 444 4,369 Supportsoft Inc. * 511 6,720 Symantec Corp. * 3,618 125,364 TIBCO Software, Inc. * 2,586 17,507 Tumbleweed Communications Corp. * 611 5,120 VeriSign, Inc. * 2,877 46,895 Verity, Inc. * 469 7,828 Verso Technologies, Inc. * 1,567 5,014 Vignette Corp. * 3,270 7,423 Vitria Technology, Inc. * (a) 563 3,997 Watchguard Technologies, Inc. * 500 2,910 WebEx Communications, Inc. * (a) 504 10,130 WebMethods, Inc. * 743 6,798 ---------- 2,616,946 INVESTMENT COMPANIES - 0.07% Allied Capital Corp. (a) 1,471 41,012 American Capital Strategies, Ltd. (a) 784 23,308 Gabelli Asset Management, Inc., Class A (a) 100 3,980 MCG Capital Corp. (a) 528 10,296 Medallion Financial Corp. 447 4,242 Raymond James Financial, Inc. * 620 23,374 Soundview Technology Group, Inc. * 361 5,592 Stifel Financial Corp. 238 4,641 ---------- 116,445 LEASE RENTAL OBLIGATIONS - 0.00% California First National Bancorp 400 5,720 ---------- LEISURE TIME - 0.91% 4Kids Entertainment, Inc. * (a) 182 4,736 Action Performance Companies, Inc. 246 4,822 Ambassadors International, Inc. 400 5,000 AMC Entertainment, Inc. * 472 7,179 Arctic Cat, Inc. (a) 249 6,150 Atari, Inc. * (a) 1,608 6,754 Bally Total Fitness Holding Corp. * 557 3,899 Blockbuster, Inc., Class A (a) 427 7,665 Brunswick Corp. 1,087 34,599 Callaway Golf Company 861 14,508 Carmike Cinemas, Inc. * (a) 140 4,879 Carnival Corp. 7,370 292,810 Cedar Fair, LP (a) 531 16,328 Churchill Downs, Inc. * 187 6,770 Dover Motorsports, Inc. 900 3,150 Escalade, Inc. * 136 4,623 Gaylord Entertainment Company * 508 15,164 Handleman Company 308 6,323 Hollywood Entertainment Corp. * 700 9,625 International Game Technology 4,069 145,263 International Speedway Corp., Class A 567 25,322 Isle of Capri Casinos, Inc. * 355 7,622 K2, Inc. * (a) 314 4,776 Lakes Gaming, Inc. * 300 4,845 Metro-Goldwyn-Mayer, Inc. * 2,892 49,424 Movie Gallery, Inc. (a) 408 7,621 Multimedia Games, Inc. * (a) 160 6,576 Parkervision, Inc. * 300 2,937 Penn National Gaming, Inc. * 450 10,386 Pinnacle Entertainment, Inc. * 469 4,371 Pixar, Inc. * (a) 588 40,743 Polaris Industries, Inc. (a) 235 20,816 Rc2 Corp. * 220 4,565 Regal Entertainment Group, Class A (a) 609 12,497 Royal Caribbean Cruises, Ltd. (a) 2,292 79,739 Scientific Games Corp., Class A * (a) 742 12,621 SCP Pool Corp. * 399 13,039 Shuffle Master, Inc. * (a) 184 6,370 Six Flags, Inc. * 1,256 9,445 Speedway Motorsports, Inc. 484 13,997 Steinway Musical Instruments, Inc. * 163 4,026 Sturm Ruger & Company, Inc. 471 5,355 The Nautilus Group, Inc. 414 5,817 The Walt Disney Company * 24,040 560,853 Vail Resorts, Inc. * (a) 419 7,123 West Marine, Inc. * (a) 210 5,840 WMS Industries, Inc. * 384 10,061 ---------- 1,537,034
The accompanying notes are an integral part of the financial statements. 274 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- LIFE SCIENCES - 0.06% Incyte Corp. * 961 $ 6,573 PerkinElmer, Inc. * 1,501 25,622 Pharmaceutical Product Development, Inc. * 606 16,344 Symyx Technologies, Inc. * 395 8,118 Waters Corp. * 1,445 47,916 ---------- 104,573 LIQUOR - 0.06% Adolph Coors Company, Class B 354 19,860 Boston Beer Company, Inc. * (a) 322 5,841 Brown Forman Corp., Class B 700 65,415 Central European Distribution Corp. * (a) 145 4,582 ---------- 95,698 MANUFACTURING - 0.96% 3M Company 9,247 786,272 Actuant Corp., Class A * 338 12,236 Acuity Brands, Inc. * 499 12,874 AptarGroup, Inc. 385 15,015 Armor Holdings, Inc. * 370 9,735 Barnes Group, Inc. 309 9,984 Blout International, Inc. * 600 4,722 Carlisle Companies, Inc. 309 18,806 Cuno, Inc. * 179 8,060 Danaher Corp. * 1,765 161,939 Eaton Corp. 903 97,506 Esco Technologies, Inc. * 128 5,587 Fedders Corp. 569 4,097 Hexcel Corp. * 613 4,542 Illinois Tool Works, Inc. 3,559 298,636 Kaydon Corp. * 312 8,062 Lancaster Colony Corp. 356 16,077 Lydall, Inc. * 347 3,536 Mine Safety Appliances Company 125 9,939 Nordson Corp. 393 13,570 Pentair, Inc. 514 23,490 Raven Industries, Inc. 117 3,451 Shaw Group, Inc. * (a) 671 9,139 Snap-on, Inc. 708 22,826 SPX Corp. * 932 54,811 Thomas Industries, Inc. 161 5,580 York International Corp. 434 15,971 ---------- 1,636,463 MEDICAL-HOSPITALS - 0.27% AmSurg Corp. * 259 9,813 Bioreliance Corp. * 117 5,595 Centene Corp. * (a) 212 5,938 Cepheid, Inc. * 489 4,685 Community Health Systems, Inc. * (a) 1,159 30,806 Davita, Inc. * 724 28,236 Dynacq Healthcare, Inc. * (a) 174 1,336 Exactech, Inc. * 274 4,041 Health Management Associates, Inc., Class A 2,816 67,584 Laserscope * (a) 264 4,116 Lifepoint Hospitals, Inc. * 453 13,341 Manor Care, Inc. 1,082 37,405 Medcath Corp. * (a) 299 3,128 Microtek Med Holdings, Inc. * 700 3,500 Microvision, Inc. * (a) 448 3,414 Neogen Corp. * (a) 148 3,666 Novavax, Inc. * 540 3,240 Per-Se Technologies, Inc. * 427 6,516 Possis Medical, Inc. * 223 4,404 Province Healthcare Company * 616 9,856 PSS World Medical, Inc. * 875 10,561 Psychiatric Solutions, Inc. * 219 4,577 Rehabcare Group, Inc. * (a) 188 3,997 Select Medical Corp. 1,088 17,713 STAAR Surgical Company * (a) 278 3,130 Tenet Healthcare Corp. * 5,471 87,810 Triad Hospitals, Inc. * 920 30,608 Universal Health Services, Inc., Class B 622 33,414 VCA Antech, Inc. * 483 14,963 ---------- 457,393 METAL & METAL PRODUCTS - 0.07% Commercial Metals Company * 302 9,181 Crown Holdings, Inc. * 1,992 18,048 Matthews International Corp., Class A 346 10,238 Mueller Industry, Inc. * 377 12,954 NN, Inc. 314 3,953 Precision Castparts Corp. 617 28,026 Quanex Corp. 194 8,943 Southern Peru Copper Corp. (a) 164 7,734 Timken Company 1,061 21,284 Titanium Metals Corp. * (a) 100 5,251 ---------- 125,612 MINING - 0.33% Alliance Resource Partners, LP (a) 145 4,985 Brush Wellman, Inc. * 292 4,471 Cleveland-Cliffs, Inc. * 144 7,337 Coeur d'Alene Mines Corp. * 2,605 15,057 Freeport-McMoRan Copper & Gold, Inc., Class B * 2,029 85,482 Glamis Gold, Ltd. * 1,502 25,714 Hecla Mining Company * (a) 1,415 11,730 Joy Global, Inc. 589 15,402 Lincoln Electric Holding, Inc. * 471 11,653 Natural Resource Partners LP 165 6,831 Newmont Mining Corp. 5,107 248,251 Penn Virginia Corp. 99 5,509 Phelps Dodge Corp. 1,066 81,112 RTI International Metals, Inc. * 385 6,495 Stillwater Mining Company * 1,089 10,422 Terex Corp. * 535 15,237 USEC, Inc. 1,125 9,450 ---------- 565,138 MOBILE HOMES - 0.02% Coachmen Industries, Inc. 233 4,220 Fleetwood Enterprises, Inc. * (a) 555 5,694 Skyline Corp. * 112 3,906 Winnebago Industries, Inc. (a) 207 14,231 ---------- 28,051 NEWSPAPERS - 0.19% Dow Jones & Company, Inc. 990 49,351 E.W. Scripps Company, Class A 939 88,397 Journal Register Company * 488 10,102 Knight-Ridder, Inc. 942 72,883 Lee Enterprises, Inc. 464 20,254 Washington Post Company, Class B 100 79,140 ---------- 320,127 OFFICE FURNISHINGS & SUPPLIES - 0.24% Avery Dennison Corp. 1,291 72,322 Global Imaging Systems, Inc. * (a) 249 7,906 Herman Miller, Inc. * 900 21,843 HON Industries, Inc. 710 30,757 Ikon Office Solutions, Inc. 1,764 20,921 Imagistics International, Inc. * 180 6,750 Office Depot, Inc. * 3,614 60,390 Staples, Inc. * 5,772 157,575 The Standard Register Company * (a) 436 7,338
The accompanying notes are an integral part of the financial statements. 275 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- OFFICE FURNISHINGS & SUPPLIES - CONTINUED United Stationers, Inc. * 360 $ 14,731 ---------- 400,533 PAPER - 0.38% Boise Cascade Corp. * 622 20,439 Bowater, Inc. * 684 31,676 Buckeye Technologies, Inc. * 475 4,774 Chesapeake Corp. * 193 5,111 Georgia-Pacific Corp. 2,973 91,182 International Paper Company 5,628 242,623 Louisiana-Pacific Corp. * 1,260 22,529 MeadWestvaco Corp. 2,349 69,883 P.H. Glatfelter Company 587 7,308 Plum Creek Timber Company, Inc. 2,178 66,320 Pope & Talbot, Inc. 253 4,455 Potlatch Corp. (a) 326 11,335 Rock-Tenn Company, Class A 469 8,095 Temple-Inland, Inc. 669 41,926 Wausau-Mosinee Paper Corp. * 705 9,531 ---------- 637,187 PETROLEUM SERVICES - 3.36% Atwood Oceanics, Inc. * 251 8,017 Baker Hughes, Inc. 3,899 125,392 BJ Services Company * 1,808 64,907 Cal Dive International, Inc. * 461 11,115 ChevronTexaco Corp. 12,586 1,087,305 Diamond Offshore Drilling, Inc. (a) 1,586 32,529 ENSCO International, Inc. 1,699 46,162 Exxon Mobil Corp. 78,173 3,205,093 GlobalSantaFe Corp. 2,652 65,849 Grey Wolf, Inc. * 2,413 9,025 Gulfmark Offshore, Inc. * (a) 375 5,250 Halliburton Company 5,178 134,628 Horizon Offshore, Inc. * 700 3,080 Input/Output, Inc. * (a) 897 4,046 Key Energy Services, Inc. * 1,561 16,094 Lone Star Technologies, Inc. * 406 6,488 McDermott International, Inc. * 883 10,552 Nabors Industries, Ltd. * 1,665 69,098 Newpark Resources, Inc. * 1,077 5,159 Noble Corp. * 1,500 53,670 Oceaneering International, Inc. * 306 8,568 Petroleum Development Corp. * 326 7,726 Premcor, Inc. * 596 15,496 Pride International, Inc. * 1,563 29,134 Schlumberger, Ltd. * 6,871 375,981 SEACOR SMIT, Inc. * 191 8,028 Smith International, Inc. * 1,166 48,412 Superior Energy Services, Inc. * 925 8,695 Tesoro Petroleum Corp. * 785 11,437 Tidewater, Inc. 663 19,810 Transocean, Inc. * 3,818 91,670 Universal Compression Holdings, Inc. * 371 9,705 Valero Energy Corp. 1,320 61,169 Varco International, Inc. * 1,124 23,188 Veritas DGC, Inc. * 519 5,439 W-H Energy Services, Inc. * 392 6,350 ---------- 5,694,267 PHARMACEUTICALS - 5.66% aaiPharma, Inc. * (a) 319 8,013 Abbott Laboratories, 18,387 856,834 Abgenix, Inc. *, 1,117 13,918 Able Laboratories, Inc. * (a) 272 4,915 Adolor Corp. * 461 9,229 Alexion Pharmaceuticals, Inc. * (a) 274 4,663 Alkermes, Inc. * (a) 1,122 15,147 Allergan, Inc. 1,515 116,367 American Pharmaceutical Partners, Inc. * (a) 157 5,275 AmerisourceBergen Corp. 1,307 73,388 Amylin Pharmaceuticals, Inc. * (a) 1,132 25,153 Array BioPharma, Inc. * 500 2,845 Barr Laboratories, Inc. * 826 63,561 Bentley Pharmaceuticals, Inc. * 266 3,538 Bristol-Myers Squibb Company * 22,922 655,569 Cardinal Health, Inc. 5,271 322,374 Celgene Corp. * (a) 994 44,750 CIMA Laboratories, Inc. * (a) 169 5,513 Connetics Corp. * 429 7,791 Cubist Pharmaceuticals, Inc. * (a) 563 6,846 Eli Lilly & Company 13,273 933,490 Endo Pharmaceutical Holdings, Inc. * 1,557 29,988 First Horizon Pharmaceutical Corp. * 519 5,813 Forest Laboratories, Inc. * 4,287 264,937 Genta, Inc. * (a) 969 10,087 Gilead Sciences, Inc. * 2,406 139,885 Guilford Pharmaceuticals, Inc. * (a) 490 3,322 Hi-Tech Pharmacal Company, Inc. * 100 2,350 Indevus Pharmaceuticals, Inc. * 728 4,288 Inkine Pharmaceutical, Inc. * 760 3,671 Inspire Pharmaceuticals, Inc. * 354 5,013 Introgen Therapeutics, Inc. * 383 3,240 Isis Pharmaceuticals, Inc. * (a) 870 5,655 Ivax Corp. * 2,345 55,999 King Pharmaceuticals, Inc. * 2,841 43,354 Ligand Pharmaceuticals, Inc., Class B * (a) 889 13,059 Medicis Pharmaceutical Corp., Class A 291 20,748 Merck & Company, Inc. 26,378 1,218,664 Mylan Laboratories, Inc. 3,134 79,165 Nabi Biopharmaceuticals * 606 7,702 Noven Pharmaceuticals, Inc. * 285 4,335 NPS Pharmaceuticals, Inc. * (a) 435 13,372 Nuvelo, Inc. * (a) 1,073 3,723 OSI Pharmaceuticals 458 14,752 Onyx Pharmaceuticals, Inc. * (a) 347 9,796 Pain Therapeutics, Inc. * (a) 589 4,094 Penwest Pharmaceuticals Company * (a) 252 4,355 Peregrine Pharmaceuticals, Inc. * (a) 1,877 4,148 Pfizer, Inc. 91,711 3,240,150 Pharmaceutical Resources, Inc. * 373 24,301 Pozen, Inc. * 366 3,733 Regeneron Pharmaceuticals, Inc. * (a) 707 10,400 Salix Pharmaceuticals, Ltd. * 292 6,620 Schering-Plough Corp. 17,303 300,899 SciClone Pharmaceuticals, Inc. * (a) 689 4,671 Sepracor, Inc. * 1,044 24,983 SICOR, Inc. * 1,391 37,835 United Therapeutics Corp. * (a) 255 5,852 Valeant Pharmaceuticals International * 1,027 25,829 Vertex Pharmaceuticals, Inc. * 1,025 10,486 Vicuron Phamaceuticals, Inc. * 648 12,085 Watson Pharmaceuticals, Inc. * 1,269 58,374 Wyeth 15,660 664,767 XOMA, Ltd. * 1,089 7,187 ---------- 9,592,866 PHOTOGRAPHY - 0.05% Concord Camera Corp. * 407 3,765 CPI Corp. (a) 154 3,112 Eastman Kodak Company 3,350 85,995 ---------- 92,872
The accompanying notes are an integral part of the financial statements. 276 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ -------- PLASTICS - 0.01% Spartech Corp. 370 $ 9,117 -------- POLLUTION CONTROL - 0.04% Duratek, Inc. * 300 3,912 Gundle/SLT Environmental, Inc. * 200 4,152 Republic Services, Inc. 1,779 45,596 Stericycle, Inc. * 423 19,754 -------- 73,414 PUBLISHING - 0.56% American Greetings Corp., Class A * 830 18,152 Cadmus Communications Corp. 392 5,096 Consolidated Graphics, Inc. * 162 5,116 Courier Corp. 1 19 Gannett Company, Inc. 3,119 278,090 Gemstar-TV Guide International, Inc. * 4,946 24,977 Hollinger International, Inc., Class A * 1,076 16,807 John Wiley & Son, Class A 679 17,674 Mail-Well Holdings, Inc. * 897 4,135 Mcclatchy Company, Class A 574 39,491 McGraw-Hill Companies, Inc. 2,271 158,788 Media General, Inc., Class A 232 15,103 Meredith Corp. 503 24,552 Nelson Thomas, Inc. 291 5,625 Playboy Enterprises, Inc., Class B * 275 4,444 PRIMEDIA, Inc. * 3,442 9,741 Pulitzer, Inc. * 83 4,482 Readers Digest Association, Inc., Class A 1,237 18,135 Scholastic Corp. * 448 15,250 The New York Times Company, Class A 1,706 81,530 Tribune Company 3,693 190,559 Value Line, Inc. 101 5,040 -------- 942,806 RAILROADS & EQUIPMENT - 0.35% Burlington Northern Santa Fe Corp. 4,268 138,070 CSX Corp. 2,481 89,167 Florida East Coast Indiana, Inc. 428 14,167 GATX Corp. 566 15,837 Genesee & Wyoming, Inc., Class A * 187 5,890 Greenbrier Company, Inc. * 285 4,774 Kansas City Southern * 755 10,811 Norfolk Southern Corp. 4,506 106,567 PAM Transportation Services, Inc. * (a) 152 3,242 Union Pacific Corp. 2,900 201,492 Wabtec Corp. 551 9,389 -------- 599,406 REAL ESTATE - 1.52% Acadia Realty Trust, REIT 659 8,238 Agree Realty Corp. 299 8,456 Alexander's, Inc., REIT * 56 6,981 Alexandria Real Estate Equities, Inc. 186 10,769 AMB Property Corp., REIT 892 29,329 American Financial Realty Trust, REIT 759 12,941 American Home Mortgage Investment Corp., REIT (a) 218 4,907 American Land Lease, Inc. 382 7,621 American Mortgage Acceptance Company * 369 6,015 AmeriVest Properties, Inc. * 879 6,311 Annaly Mortgage Management, Inc., REIT 1,096 20,166 Anthracite Capital, Inc., REIT 792 8,767 Anworth Mortgage Asset Corp., REIT 418 5,823 Apartment Investment & Management Company, Class A, REIT 1,052 36,294 Archstone-Smith Trust, REIT 2,152 60,213 Arden Realty, Inc., REIT * 756 22,937 Ashford Hospitality Trust, Inc., REIT * 690 6,479 Associated Estates Realty Corp., REIT * 1,047 7,654 Atlantic Realty Trust, REIT 416 6,282 Avalon Bay Communities, Inc., REIT * 821 39,244 Bluegreen Corp. * 508 3,170 Boston Properties, Inc., REIT 1,091 52,575 Brandywine Realty Trust, REIT * 491 13,144 BRE Properties, Inc., Class A, REIT 586 19,572 Brookfield Homes Corp. 319 8,221 BRT Realty Trust, REIT 252 7,270 Camden Property Trust, REIT * 501 22,194 Capital Automotive, REIT 352 11,264 Capital Trust Inc. Maryland 209 4,744 Capstead Mortage Corp., REIT (a) 350 5,873 CarrAmerica Realty Corp., REIT 655 19,506 Catellus Development Corp., REIT 1,120 27,014 CBL & Associates Properties, Inc., REIT 359 20,283 Cedar Shopping Centers, Inc. * 300 3,726 CenterPoint Properties Corp., REIT 225 16,852 Chelsea Property Group, Inc., REIT 538 29,488 Colonial Properties Trust SBI 354 14,018 Commercial Net Lease Realty, REIT 606 10,787 Cornerstone Realty Income Trust, Inc., REIT 1,035 9,067 Corporate Office Properties Trust, REIT 363 7,623 Corrections Corp. of America * 402 11,590 Cousins Properties, Inc. 591 18,085 Crescent Real Estate Equities Company, REIT 1,217 20,847 Criimi Mae, Inc. * 300 3,129 Developers Diversified Realty Corp., REIT 1,026 34,443 Duke Realty Corp. 1,542 47,802 EastGroup Properties, Inc., REIT 290 9,390 Eldertrust 372 4,661 Entertainment Properties Trust, REIT 266 9,233 Equity Inns, Inc., REIT * 713 6,453 Equity Office Properties Trust, REIT 4,618 132,306 Equity One, Inc. 810 13,673 Equity Residential, REIT * 3,184 93,960 Essex Property Trust, REIT 298 19,138 Federal Realty Investment Trust, REIT 514 19,732 Felcor Lodging Trust, Inc., REIT 831 9,207 First Industrial Realty Trust, Inc., REIT * 474 15,998 First Potomac Realty Trust * 400 7,496 First Union Real Estate Equity & Mortgage Investments * 1,810 3,910 Gables Residential Trust, REIT * 316 10,978 General Growth Properties, Inc., REIT 717 19,897 Gladstone Commercial Corp. (a) 299 5,038 Glenborough Realty Trust, Inc., REIT 437 8,718 Glimcher Realty Trust * 461 10,317 Great Lakes REIT, Inc., REIT * 466 7,316 Health Care Property Investors, Inc., REIT 759 38,557 Health Care REIT, Inc. 552 19,872 Healthcare Realty Trust 538 19,233 Heritage Property Investment Trust, Inc., REIT * 542 15,420 Hersha Hospitality Trust * 788 7,959 Highwoods Properties, Inc., REIT 545 13,843 Home Properties Inc., REIT 383 15,469 Hospitality Properties Trust, SBI * 694 28,648 Host Marriott Corp., REIT * 3,846 47,383 HRPT Properties Trust, REIT * 1,565 15,791 Innkeepers USA Trust, REIT 619 5,181 Jones Lang Lasalle, Inc. * 426 8,831 Kilroy Realty Corp., REIT * 413 13,526
The accompanying notes are an integral part of the financial statements. 277 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ---------- REAL ESTATE - CONTINUED Kimco Realty Corp., REIT 1,256 $ 56,206 Lexington Corporate Property Trust, REIT 531 10,721 Liberty Property Trust, REIT (a) 910 35,399 LNR Property Corp. 254 12,576 LTC Properties, Inc., REIT 417 6,147 Mack-California Realty Corp., REIT * 655 27,261 Maguire Properties, Inc. 615 14,945 Manufactured Home Communities, Inc. 349 13,140 MeriStar Hospitality Corp., REIT 993 6,464 MFA Mortgage Investments, Inc., REIT 643 6,269 Mission West Properties, Inc. * 602 7,796 Monmouth Real Estate Investment Corp. 800 6,952 National Health Investments, Inc., REIT 387 9,629 Nationwide Health Properties, Inc., REIT 720 14,076 New Plan Realty Trust, Inc. * 1,065 26,274 Newhall Land & Farming Company, ADR 246 9,933 Novastar Financial, Inc. (a) 168 7,217 Omega Healthcare Investors, REIT 650 6,065 Pan Pacific Retail Properties, Inc., REIT 474 22,586 Pennsylvania Real Estate Investment Trust, REIT 415 15,065 Post Properties, Inc., REIT 508 14,183 Prentiss Properties Trust, REIT * 494 16,297 Price Legacy Corp., REIT * 1,057 4,027 Prime Group Realty Trust, REIT * 727 4,558 ProLogis, REIT 2,115 67,870 PS Business Parks, Inc., REIT 230 9,490 Public Storage, Inc., REIT 1,449 62,872 Reading International, Inc. * 671 3,972 Realty Income Corp., REIT 427 17,080 Reckson Associates Realty Corp., REIT 501 12,174 Redwood Trust, Inc., REIT 195 9,916 Regency Centers Corp., REIT 672 26,779 Rouse Company, REIT 1,022 48,034 Senior Housing Properties Trust, SBI * 809 13,939 Shurgard Storage Centers, Inc., Class A 541 20,369 Simon Property Group, Inc., REIT 2,271 105,238 Sizeler Property Investors, Inc., REIT 1,002 10,731 SL Green Realty Corp., REIT 403 16,543 Summit Properties, Inc., REIT * 468 11,241 Sun Communities, Inc., REIT 272 10,526 Taubman Centers, Inc., REIT 661 13,617 The Macerich Company, REIT 612 27,234 The Mills Corp., REIT 537 23,628 The St. Joe Company 926 34,531 Trammell Crow Company * 480 6,360 Transcontinental Realty Investors, Inc., REIT * 200 3,346 Trizec Properties, Inc., REIT 1,779 27,397 United Capital Corp. 178 3,688 United Dominion Realty Trust, Inc., REIT 1,431 27,475 United Mobile Homes, Inc. 400 6,804 United States Restaurant Properties, Inc. * 545 9,287 Urstadt Biddle Properties, Inc. 582 8,235 Ventas, Inc., REIT 1,019 22,418 Vornado Realty Trust, REIT 1,272 69,642 W. P. Carey & Company LLC 388 11,842 Washington REIT, REIT 512 14,950 Weingarten Realty Investors, REIT 627 27,807 Wellsford Real Properties, Inc. * 286 5,320 Windrose Medical Properties Trust 502 6,230 Winston Hotels, Inc., REIT * 609 6,212 ---------- 2,571,431 RETAIL GROCERY - 0.50% 7 Eleven, Inc. * 1,265 20,303 Albertsons, Inc. * 4,245 96,149 Arden Group, Inc. 67 5,192 Ingles Markets, Inc. * 484 4,971 Nash-Finch Company 200 4,468 Pathmark Stores, Inc. * 577 4,385 Ruddick Corp. 544 9,738 Safeway, Inc. * 5,090 111,522 Smart & Final, Inc. * 485 4,889 SUPERVALU, Inc. 1,527 43,657 Sysco Corp. 7,608 283,246 The Great Atlantic & Pacific Tea Company, Inc. * (a) 657 5,519 The Kroger Company * 8,763 162,203 United Natural Foods, Inc. * 238 8,547 Weis Markets, Inc. 256 9,293 Whole Foods Market, Inc. 728 48,871 Wild Oats Markets, Inc. * 479 6,193 Winn-Dixie Stores, Inc. (a) 1,617 16,089 ---------- 845,235 RETAIL TRADE - 5.06% 99 Cents Only Stores * (a) 882 24,017 A.C. Moore Arts & Crafts, Inc. * 213 4,102 Aaron Rents, Inc., Class B 367 7,388 Abercrombie & Fitch Company, Class A * 1,166 28,812 Aeropostale, Inc. * 423 11,599 American Eagle Outfitters, Inc. * 806 13,218 AnnTaylor Stores Corp. * 486 18,954 Asbury Automotive Group, Inc. * 458 8,203 Barnes & Noble, Inc. * 797 26,181 Bed Bath & Beyond, Inc. * 3,432 148,777 Best Buy Company, Inc. 3,832 200,184 Big 5 Sporting Goods Corp. * 287 6,013 Big Lots, Inc. * 1,393 19,794 BJ's Wholesale Club, Inc. * 872 20,021 Blue Rhino Corp. * (a) 263 3,653 Bombay Company, Inc. * (a) 520 4,233 Borders Group, Inc. 933 20,451 Brookstone, Inc. * 181 3,857 Burlington Coat Factory Warehouse Corp. 504 10,665 Cache, Inc. * 123 2,562 CarMax, Inc. * 1,242 38,415 Casey's General Stores, Inc. 577 10,190 Cash America International, Inc. 313 6,629 Casual Male Retail Group, Inc. * (a) 572 3,970 Cato Corp., Class A 269 5,514 Charlotte Russe Holding, Inc. * 270 3,742 Charming Shoppes, Inc. * 1,465 7,911 Chico's FAS, Inc. * 1,048 38,724 Childrens Place Retail Stores, Inc. * 293 7,832 Christopher & Banks Corp. 429 8,378 Circuit City Stores-Circuit City Group * 2,473 25,051 Claire's Stores, Inc. 1,252 23,588 Coldwater Creek, Inc. * 358 3,938 Cole National Corp., Class A * 200 4,000 Cost Plus, Inc. * 253 10,373 Costco Wholesale Corp. * 5,396 200,623 CVS Corp. 4,606 166,369 Deb Shops, Inc. * (a) 184 3,956 Dicks Sporting Goods, Inc. * (a) 180 8,759 Dillard's, Inc., Class A * 1,032 16,987 Dollar General Corp. 3,960 83,120
The accompanying notes are an integral part of the financial statements. 278 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- RETAIL TRADE - CONTINUED Dollar Tree Stores, Inc. * 1,356 $ 40,761 Electronics Boutique Holdings Corp.* (a) 317 7,256 Family Dollar Stores, Inc. 2,047 73,446 Federated Department Stores, Inc. 2,199 103,639 Finish Line, Inc. * 204 6,114 First Cash Financial Services * 157 4,026 Foot Locker, Inc. 1,629 38,200 Fossil, Inc. * 532 14,901 Fred's, Inc., Class A 437 13,538 Galyan's Trading, Inc. * 300 3,612 GameStop Corp. * (a) 272 4,191 Genesco, Inc. * (a) 314 4,751 Group 1 Automotive, Inc. * 264 9,554 Guitar Center, Inc. * 279 9,090 Hancock Fabrics, Inc. 250 3,620 Haverty Furniture Companies, Inc. 331 6,574 Hibbett Sporting Goods, Inc. * 201 5,990 Home Depot, Inc. 27,037 959,543 Hot Topic, Inc. * 523 15,408 J. Jill Group, Inc. * 256 3,254 J.C. Penney Company, Inc. * 3,152 82,835 Jo Ann Stores, Inc. * 241 4,916 Kenneth Cole Productions, Inc., Class A (a) 276 8,114 Kmart Holding Corp. * (a) 1,097 26,273 Kohl's Corp. * 4,011 180,254 Limited Brands, Inc. 6,085 109,713 Linens'n Things, Inc. * 499 15,010 Longs Drug Stores Corp. * (a) 451 11,158 Lowe's Companies, Inc. 9,273 513,631 Manning Greg Auctions, Inc. * 400 4,736 Marinemax, Inc. * 197 3,828 May Department Stores Company 3,330 96,803 Michael's Stores, Inc. 834 36,863 MSC Industrial Direct Company, Inc., Class A * 432 11,880 NBTY, Inc. * 830 22,294 Nordstrom, Inc. 1,567 53,748 Pacific Sunwear of California, Inc. * 949 20,043 Pantry, Inc. * (a) 263 5,970 Party City Corp. * 300 3,807 Payless ShoeSource, Inc. * 762 10,211 PC Connection, Inc. * (a) 422 3,532 Pep Boys - Manny, Moe & Jack * 644 14,728 Petco Animal Supplies Inc. * 166 5,055 PETsMART, Inc. 1,664 39,603 Pier 1 Imports, Inc. 1,067 23,325 RadioShack Corp. 1,912 58,660 Regis Corp. 454 17,942 Rent-A-Center, Inc. * 987 29,492 Retail Ventures, Inc. * 600 2,850 Rite Aid Corp. * 6,163 37,224 Ross Stores, Inc. 1,848 48,843 Saks, Inc. * 1,689 25,403 School Specialty, Inc. * (a) 192 6,530 Sears, Roebuck & Company * 2,978 135,469 Sharper Image Corp. * (a) 166 5,420 Shoe Carnival, Inc. * 200 3,560 Shopko Stores, Inc. * (a) 335 5,109 Sonic Automative, Inc. 341 7,816 Sports Authority, Inc. * (a) 270 10,368 Stein Mart, Inc. * 545 4,491 Steven Madden, Ltd. * 180 3,672 Summit America Television, Inc. * 900 3,528 Systemax, Inc. * 579 3,856 Talbots, Inc. 616 18,960 Target Corp. 10,754 412,954 The Buckle, Inc. 291 6,446 The Dress Barn, Inc. * 411 6,161 The Gap, Inc. * 10,482 243,287 The Men's Wearhouse, Inc. * 454 11,355 The Neiman Marcus Group, Inc., Class A * 596 31,987 The TJX Companies, Inc. 5,974 131,727 The Wet Seal, Inc., Class A *(a) 403 3,986 The Yankee Candle, Inc. * 600 16,398 Tiffany & Company 1,686 76,207 Too, Inc. * 440 7,427 Tractor Supply Company * 419 16,295 Transport World Entertainment Corp. * (a) 538 3,831 Tuesday Morning Corp. * 464 14,036 Tweeter Home Entertainment Group, Inc. * 403 3,808 United Rentals, Inc. * 890 17,141 Urban Outfitters, Inc. * 438 16,228 ValueVision Media, Inc., Class A * 515 8,600 Wal-Mart Stores, Inc. 51,464 2,730,165 Walgreen Company 12,104 440,343 Williams-Sonoma, Inc. * 1,379 47,948 Zale Corp. * 299 15,907 --------- 8,587,981 SANITARY SERVICES - 0.21% Allied Waste Industries, Inc. * 2,467 34,242 Artesian Resources Corp., Class A 202 5,628 Casella Waste Systems, Inc., Class A * 323 4,422 Darling International, Inc. * 1,215 3,353 Ecolab, Inc. 3,005 82,247 Flanders Corp. * 500 3,290 Insituform Technologies, Inc., Class A * (a) 395 6,517 Ionics, Inc. * (a) 229 7,294 Waste Connections, Inc. * 261 9,858 Waste Management, Inc. 6,914 204,654 --------- 361,505 SEMICONDUCTORS - 3.66% Actel Corp. *, 299 7,206 Advanced Energy Industries, Inc. * 381 9,925 Advanced Micro Devices, Inc. * 4,135 61,612 Agere Systems, Inc., Class A * 19,868 60,597 Alliance Semiconductor Corp. * 536 3,811 Altera Corp. * 4,485 101,809 American Superconductor Corp. * (a) 412 5,710 Amis Holdings, Inc. * 326 5,959 Amkor Technology, Inc. * 2,050 37,331 Analog Devices, Inc. 4,287 195,702 Applied Materials, Inc. * 19,530 438,448 Applied Micro Circuits Corp. * 3,634 21,731 Asyst Technologies, Inc. * 465 8,068 Atmel Corp. * 5,538 33,283 ATMI, Inc. * (a) 366 8,469 Axcelis Technologies, Inc. * 1,226 12,530 Broadcom Corp., Class A * 3,452 117,679 Caliper Technologies Corp. * 500 3,290 ChiPAC, Inc., Class A * (a) 1,190 9,032 Cirrus Logic, Inc. * 1,026 7,869 Conexant Systems, Inc. * (a) 3,270 16,252 Credence Systems Corp. * 834 10,975 Cree, Inc. * (a) 825 14,594 Cymer, Inc. * 387 17,876 Cypress Semiconductor Corp. * (a) 1,390 29,690 DSP Group, Inc. * 346 8,619 Emcore Corp. * 600 2,826
The accompanying notes are an integral part of the financial statements. 279 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- SEMICONDUCTORS - CONTINUED Emulex Corp. * 1,013 $ 27,027 Entegris, Inc. * 815 10,473 ESS Technology, Inc. * 530 9,015 Exar Corp. * 515 8,796 Fairchild Semiconductor International, Inc. * 1,378 34,409 FormFactor, Inc. * 398 7,880 Genesis Microchip, Inc. * 400 7,216 Genus, Inc. * (a) 500 3,000 GlobespanVirata, Inc. * 1,854 10,902 Integrated Circuit Systems, Inc. * 858 24,444 Integrated Device Technology, Inc. * 1,278 21,943 Intel Corp. 76,640 2,467,808 Intergrated Electrical Services, Inc. * 589 5,448 International Rectifier Corp. * 703 34,735 Intersil Corp., Class A 1,614 40,108 IXYS Corp. * (a) 482 4,507 KLA-Tencor Corp. * 2,277 133,592 Kopin Corp. * 906 6,079 Kulicke & Soffa Industries, Inc. * 658 9,462 Lam Research Corp. * 1,497 48,353 Lattice Semiconductor Corp. * 1,340 12,971 Linear Technology Corp. 3,713 156,206 LSI Logic Corp. * 4,487 39,800 LTX Corp. * 589 8,853 Mattson Technology, Inc. * 550 6,721 Maxim Integrated Products, Inc. 3,839 191,182 MEMC Electronic Materials, Inc. * 2,513 24,175 Micrel, Inc. * 1,057 16,468 Microchip Technology, Inc. 2,430 81,065 Micron Technology, Inc. * 7,193 96,890 Microsemi Corp. * 323 7,939 MIPS Technologies, Inc., Class A * 700 3,812 MKS Instruments, Inc. * 604 17,516 Monolithic System Technology, Inc. * (a) 479 4,095 Mykrolis Corp. * 509 8,185 Nanometrics, Inc. * (a) 215 3,163 National Semiconductor Corp. * 2,113 83,273 Novellus Systems, Inc. * 1,753 73,714 NVIDIA Corp. * (a) 1,850 43,013 Omnivision Technologies, Inc. * (a) 300 16,575 ON Semiconductor Corp. * 2,678 17,273 Pericom Semiconductor Corp. * 345 3,678 Photronics, Inc. * 400 7,968 PLX Technology, Inc. * 400 3,540 Power Integrations, Inc. * 335 11,209 QLogic Corp. * 1,126 58,102 Rambus, Inc. * 1,191 36,564 Rudolph Technologies, Inc. * 211 5,178 Semitool, Inc. * 458 4,910 Semtech Corp. * 908 20,639 Sigmatel, Inc. * 100 2,468 Silicon Image, Inc. * (a) 883 6,384 Silicon Laboratories, Inc. * 543 23,468 Siliconix, Inc. * 327 14,944 Sipex Corp. * 426 3,284 Skyworks Solutions, Inc. * (a) 1,731 15,060 Teradyne, Inc. * 2,182 55,532 Tessera Technologies, Inc. * 500 9,405 Texas Instruments, Inc. 20,429 600,204 TranSwitch Corp. * (a) 1,307 3,006 Triquint Semiconductor, Inc. * 1,674 11,835 Ultratech, Inc. * 273 8,018 Varian Semiconductor Equipment Associates, Inc. * 376 16,427 Veeco Instruments, Inc. * (a) 381 10,744 Vitesse Semiconductor Corp. * (a) 2,579 15,139 White Electronic Designs Corp. * 387 3,406 Xicor, Inc. * 339 3,844 Xilinx, Inc. * 4,017 155,619 Zoran Corp. * 484 8,417 --------- 6,197,971 SHIPBUILDING - 0.00% Todd Shipyards Corp. 203 3,605 --------- SOFTWARE - 3.63% Activision, Inc. * 1,046 19,037 Actuate Corp. * 954 2,967 Adobe Systems, Inc. 2,750 108,075 Advent Software, Inc. * 432 7,530 Allscripts Heathcare Solution, Inc. * 600 3,192 Altiris, Inc. * (a) 281 10,251 ANSYS, Inc. * 168 6,670 Ascential Software Corp. * 691 17,918 Aspen Technology, Inc. * (a) 600 6,156 Authentidate Holding Corp. * (a) 400 4,760 Autodesk, Inc. * 1,330 32,691 Avid Technology, Inc. * 332 15,936 BARRA, Inc. * 215 7,630 BEA Systems, Inc. * 4,731 58,191 Bindview Development Corp. * 800 3,016 Borland Software Corp. * 1,025 9,973 Brocade Communications Systems, Inc. * 3,121 18,039 Captaris, Inc. * 536 3,012 Carreker Corp. * 353 4,946 Catapult Communications Corp. * 200 2,900 CCC Information Services Group, Inc. * 315 5,324 CIBER, Inc. * 768 6,651 Citrix Systems, Inc. * 1,919 40,702 Computer Associates International, Inc. * 6,842 187,060 Compuware Corp. * 4,590 27,724 Concord Communications, Inc. * (a) 253 5,052 Concur Technologies, Inc. * 434 4,201 Covansys Corp. * 400 4,400 Dendrite International, Inc. * 502 7,866 Electronic Arts, Inc. * 3,516 167,994 Embarcadero Tech, Inc. * 355 5,662 Epicor Software Corp. * (a) 529 6,750 EPIQ Systems, Inc. * (a) 215 3,683 Equinix, Inc. * 200 5,640 Evolving Systems, Inc. * (a) 200 2,660 Exult, Inc. * (a) 1,393 9,918 Faro Technologies, Inc. * (a) 200 4,996 Group 1 Software, Inc. * 203 3,577 Hyperion Solutions Corp. * 519 15,643 Igate Corp. * 702 5,511 Industries International, Inc. * 1,100 3,300 Informatica Corp. * 1,010 10,403 InfoUSA, Inc. * 732 5,431 Intermediate Telephone, Inc. 328 8,193 Intuit, Inc. * 2,446 129,418 JDA Software Group, Inc. * 334 5,514 Keane, Inc. * 806 11,800 Macrovision Corp. * 568 12,831 Magma Design Automation, Inc. * (a) 405 9,453 Manhattan Associates, Inc. * (a) 353 9,757 Mantech International Corp. * 434 10,828 Manugistics Group, Inc. * (a) 999 6,244 MAPICS, Inc. * 314 4,110
The accompanying notes are an integral part of the financial statements. 280 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ----- SOFTWARE - CONTINUED McDATA Corp., Class A * 1,400 $ 13,342 Mercury Interactive Corp. * 1,047 50,926 Micromuse, Inc. * 1,015 7,004 Microsoft Corp. 127,386 3,508,210 MicroStrategy, Inc. * 144 7,557 Midway Games, Inc. * (a) 1,000 3,880 MRO Software, Inc. * 295 3,971 MSC Software Corp. * (a) 390 3,686 Nassda Corp. * 454 3,292 Neoware Systems, Inc. * (a) 191 2,617 NMS Communications Corp. * 600 3,744 Novell, Inc. * 4,470 47,024 NYFIX, Inc. * (a) 440 3,498 Omnicell, Inc. * 281 4,552 OpenTV Corp., Class A * 1,118 3,745 Opnet Technologies, Inc. * 318 5,234 Opsware, Inc. * (a) 1,124 8,318 Oracle Corp. * 61,656 813,859 Packeteer, Inc. * 455 7,726 Palmsource, Inc. * (a) 128 2,789 Parametric Technology Corp. * 3,390 13,357 PDF Solutions, Inc. * (a) 310 4,619 Pegasystems, Inc. * 531 4,577 PeopleSoft, Inc. * 4,277 97,516 Plato Learning, Inc. * 400 4,220 Puma Technology, Inc. * (a) 691 2,750 Qad Inc. * 479 5,873 Quality Systems * 84 3,746 Red Hat, Inc. * 2,058 38,629 Scansoft, Inc. * (a) 1,295 6,889 Sco Group, Inc. * (a) 202 3,434 Secure Computing Corp. * (a) 478 8,561 Seebeyond Technology Corp. * 1,117 4,792 Serena Software, Inc. * (a) 501 9,193 Siebel Systems, Inc. * 5,831 80,876 SPSS, Inc. * 232 4,148 SS&C Technologies, Inc. 193 5,394 Synplicity, Inc. * 500 3,915 Take-Two Interactive Software, Inc. * 464 13,368 THQ, Inc. * (a) 491 8,303 Tradestation Group, Inc. * 581 5,148 Transaction Systems Architects, Inc., Class A * 444 10,048 Ulticom, Inc. * 528 5,095 Ultimate Software Group, Inc. * (a) 348 3,052 VA Software Corp. * (a) 854 3,339 Verint Systems, Inc. * 361 8,144 VERITAS Software Corp. * 5,066 188,253 Websense, Inc. * (a) 261 7,632 Zixit Corp. * (a) 400 3,476 --------- 6,154,507 STEEL - 0.12% Alaska Steel Holding Corp. * 1,492 7,609 Allegheny Technologies, Inc. 1,114 14,727 Carpenter Technology Corp. 289 8,546 Gibraltar Steel Corp. 194 4,879 NS Group, Inc. * 400 3,880 Nucor Corp. 944 52,864 Reliance Steel & Aluminum Company * 401 13,317 Ryerson Tull, Inc. * (a) 390 4,466 Schnitzer Steel Industries, Inc. (a) 124 7,502 Steel Dynamics, Inc. * (a) 578 13,577 Steel Technologies, Inc. 200 3,538 Texas Industries, Inc. 297 10,989 United States Steel Corp. 1,219 42,689 Worthington Industries, Inc. (a) 984 17,742 --------- 206,325 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 1.91% ADC Telecommunications, Inc. * 9,706 28,827 ADTRAN, Inc. 854 26,474 Advanced Fibre Communications, Inc. * 1,053 21,218 Aeroflex, Inc. * 864 10,100 Alaska Communications Systems, Inc. * 704 3,337 American Tower Corp., Class A * 2,531 27,385 Andrew Corp. * 1,819 20,937 Applied Signal Technology, Inc. 220 5,062 Arris Group, Inc. * (a) 1,007 7,291 Aspect Communications Corp. * 695 10,953 At Road, Inc. * (a) 735 9,776 Avaya, Inc. * 4,921 63,678 Brightpoint, Inc. * 234 4,037 Carrier Access Corp. * 300 3,756 CellStar Corp. * 300 3,789 CIENA Corp. * 5,676 37,689 Citizens Communications Company * 3,350 41,607 Commonwealth Telephone Enterprises, Inc., (CTE) * 270 10,192 Commscope, Inc. * 709 11,578 Comtech Telecommunications Corp. * 169 4,879 Comverse Technology, Inc. * 2,197 38,645 Corning, Inc. * 15,743 164,199 Corvis Corp. * 4,629 7,869 Crown Castle International Corp. * 2,662 29,362 CT Communications, Inc. 277 3,740 Ditech Communications Corp. * 415 7,927 Finisar Corp. * (a) 2,725 8,529 General Communication, Inc. * 677 5,890 Harmonic, Inc. * 904 6,554 Hungarian Telephone & Cable Corp. * 400 3,944 IDT Corp. * 283 6,268 Inet Technologies, Inc. * 534 6,408 Infonet Services Corp., Class B * 3,834 6,518 InterDigital Communication Corp. * (a) 658 13,581 Intrado, Inc. * 213 4,675 J2 Global Communications, Inc. * (a) 265 6,564 JDS Uniphase Corp. * 17,024 62,138 KVH Industries, Inc. * (a) 164 4,505 Level 3 Communications, Inc.* (a) 8,176 46,603 Lucent Technologies, Inc. * (a) 49,230 139,813 Mastec, Inc. * 588 8,708 Motorola, Inc. * 27,483 386,686 MRV Communications, Inc. * 1,431 5,381 Netgear, Inc. * (a) 335 5,357 Network Equipment Technologies, Inc. * (a) 437 4,807 New Focus, Inc. * 963 4,834 Newport Corp. * 510 8,430 NTL, Inc. * (a) 1,062 74,074 PanAmSat Corp. * 1,724 37,169 Performance Technologies, Inc. * (a) 200 2,850 Plantronics, Inc. * 505 16,488 Polycom, Inc. * 1,203 23,483 Powerwave Technologies, Inc. * (a) 792 6,059 Price Communications Corp. * 602 8,265 PTEK Holdings, Inc. * (a) 767 6,757 QUALCOMM, Inc. 9,377 505,702 REMEC, Inc. * 786 6,610 SBC Communications, Inc. 39,142 1,020,432
The accompanying notes are an integral part of the financial statements. 281 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ------------ TELECOMMUNICATIONS EQUIPMENT & SERVICES - CONTINUED Scientific-Atlanta, Inc. 1,744 $ 47,611 Shenandoah Telecommunications Company 100 5,126 Sonus Networks, Inc. * (a) 2,967 22,431 Spectralink Corp. 248 4,754 Stratex Networks, Inc. * 1,216 5,168 SureWest Communications (a) 202 8,165 Symmetricom, Inc. * 678 4,936 Tekelec * 718 11,165 Tellabs, Inc. * 4,909 41,383 Terayon Communication Systems, Inc. * 974 4,383 Tollgrade Communications, Inc. * 180 3,155 Triton PCS Holdings, Inc., Class A * 905 5,050 US LEC Corp., Class A * 500 3,940 UTStarcom, Inc. * (a) 113 4,189 Viasat, Inc. * 349 6,680 Westell Technologies, Inc., Class A * 677 4,272 Wiltel Communications Group * 614 0 WJ Communication, Inc. * (a) 805 4,121 ------------ 3,244,918 TELEPHONE - 1.50% ALLTEL Corp. 3,674 171,135 AT&T Corp. 9,314 189,074 Atlantic Tele-Network, Inc. (a) 147 4,123 BellSouth Corp. 21,788 616,600 Centennial Communications Corp., Class A * 1,317 6,927 CenturyTel, Inc. 1,637 53,399 Cincinnati Bell, Inc. * 2,981 15,054 D&E Communications, Inc. 325 4,716 Harris Corp. 808 30,664 Hickory Tech Corp. * 376 4,305 North Pittsburgh Systems, Inc. * 317 5,994 Primus Telecommunications Group, Inc. * (a) 873 8,887 Qwest Communications International, Inc. * 20,124 86,936 Sprint Corp. (FON Group) 10,538 173,034 TALK America Holdings, Inc. * (a) 365 4,205 U.S. Cellular Corp. * 1,031 36,601 Verizon Communications, Inc. * 32,420 1,137,294 ------------ 2,548,948 TIRES & RUBBER - 0.03% Bandag, Inc. 238 9,806 Cooper Tire & Rubber Company 925 19,776 Goodyear Tire & Rubber Company * (a) 2,162 16,993 Myers Indiana, Inc. * 417 5,054 ------------ 51,629 TOBACCO - 0.86% Altria Group, Inc. 23,885 1,299,822 Dimon, Inc. 691 4,664 R.J. Reynolds Tobacco Holdings, Inc. * 993 57,743 Standard Commercial Corp. 172 3,452 Universal Corp. 308 13,604 UST, Inc. 1,888 67,383 Vector Group, Ltd. (a) 538 8,780 ------------ 1,455,448 TOYS, AMUSEMENTS & SPORTING GOODS - 0.12% Hasbro, Inc. * 2,006 42,688 Jakks Pacific, Inc. * (a) 341 4,487 Marval Enterprises, Inc. * 842 24,511 Mattel, Inc. 5,162 99,472 Russ Berrie & Company, Inc. 251 8,509 Toys R Us, Inc. * 2,543 32,143 ------------ 211,810 TRANSPORTATION - 0.22% Alexander & Baldwin, Inc. 526 17,721 C. H. Robinson Worldwide, Inc. 988 37,455 Expeditors International of Washington, Inc. 1,233 46,435 General Maritime Corp. * (a) 500 8,800 Harley-Davidson, Inc. 3,506 166,640 Heartland Express, Inc. 632 15,288 Kirby Corp. * 289 10,081 Offshore Logistics, Inc. * 252 6,179 Overseas Shipholding Group, Inc. 397 13,518 Pacer International, Inc. * 456 9,220 RailAmerica, Inc. * (a) 474 5,593 SCS Transportation, Inc. * 277 4,870 Seabulk International, Inc. * 410 3,329 U. S. Xpress Enterprises, Inc., Class A * 300 3,675 Yellow Roadway Corp. * (a) 572 20,692 ------------ 369,496 TRAVEL SERVICES - 0.03% Ambassadors Group, Inc. 200 4,698 Navigant International Inc. * (a) 295 4,086 Pegasus Solutions, Inc. * (a) 421 4,408 Sabre Holdings Corp. 1,677 36,206 ------------ 49,398 TRUCKING & FREIGHT - 0.90% Arkansas Best Corp. 299 9,386 CNF, Inc. 623 21,120 Covenant Transport, Inc. * 191 3,631 EGL, Inc. * 575 10,097 Fedex Corp. 3,542 239,085 Forward Air Corp. * 280 7,700 Hub Group, Inc., Class A * 200 4,308 Hunt (JB) Transport Services, Inc. * 962 25,984 Knight Transportation, Inc. * 437 11,209 Landstar Systems, Inc. * 404 15,368 Navistar International Corp. * 858 41,090 Old Dominion Freight Lines, Inc. * 198 6,748 OMI Corp. * 917 8,189 Oshkosh Truck Corp. 367 18,728 Overnite Corp. * 300 6,825 Plains All American Pipeline, LP 514 16,684 Ryder Systems, Inc. 763 26,056 Swift Transportation, Inc. * 1,006 21,146 United Parcel Service, Inc., Class B 13,252 987,937 USF Corp. * 323 11,043 Wabash National Corp. * (a) 294 8,614 Werner Enterprises, Inc. 986 19,217 ------------ 1,520,165 TOTAL COMMON STOCK (Cost: $153,101,027) $154,567,427 ------------ PREFERRED STOCK - 0.02% BROADCASTING - 0.02% The News Corp., Ltd., ADR 1,200 36,300 TOTAL PREFERRED STOCK (Cost: $34,909) $ 36,300 ------------
The accompanying notes are an integral part of the financial statements. 282 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ------------ WARRANTS - 0.00% BANKING - 0.00% Dime Bancorp, Inc. *, (Expiration date 11/22/2005; strike price $0.16) 300 $ 51 ------------ ELECTRICAL EQUIPMENT - 0.00% Optical Cable Corp. 24 0 ------------ TOTAL WARRANTS (Cost: $105) $ 51 ------------
PRINCIPAL AMOUNT VALUE ---------- ------------ RIGHTS - 0.00% MANUFACTURING - 0.00% Fedders Corp. * $ 569 $ 34 ------------ PHARMACEUTICALS - 0.00% OSI Pharmaceuticals, Inc. * (a) 1,164 0 ------------ TOTAL RIGHTS (Cost: $0) $ 34 ------------ SHORT TERM INVESTMENTS - 5.63% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $5,449,043 $ 5,449,043 Federal Home Loan Bank Consolidated Discount Notes, 1.02% due 02/11/2004 2,000,000 1,997,676 Federal National Mortgage Association Discount Notes, Series BB, 1.05% due 01/15/2004 1,000,000 999,592 United States Treasury Bills, 0.86% due 01/08/2004 **** 200,000 199,967 United States Treasury Bills, 0.88% due 01/08/2004 **** 500,000 499,914 United States Treasury Bills, 0.89% due 01/08/2004 **** 400,000 399,931 ------------ $ 9,546,123 REPURCHASE AGREEMENTS - 3.20% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at $5,418,211 on 01/02/2004, collateralized by $3,870,000 U.S. Treasury Bonds, 8.500% due 02/15/2020 (valued at $5,526,844, including interest). $5,418,000 $ 5,418,000 ------------ TOTAL INVESTMENTS (TOTAL STOCK MARKET INDEX TRUST) (Cost: $168,100,164) $169,567,935 ============
500 INDEX TRUST
SHARES VALUE ------- ---------- COMMON STOCK - 96.72% ADVERTISING - 0.24% Monster Worldwide, Inc. * (a) 11,836 $ 259,918 Omnicom Group, Inc. * 19,942 1,741,535 The Interpublic Group of Companies, Inc. 43,520 678,912 ---------- 2,680,365 AEROSPACE - 1.85% General Dynamics Corp. 20,754 1,875,954 Goodrich Corp. * 12,344 366,493 Honeywell International, Inc. 90,480 3,024,746 Lockheed Martin Corp. 47,324 2,432,454 Northrop Grumman Corp. 19,221 1,837,528 Raytheon Company * 43,687 1,312,358 Rockwell Collins, Inc. 18,579 557,927 Textron, Inc. * 14,276 814,589 The Boeing Company * 88,296 3,720,793 United Technologies Corp. 49,390 4,680,690 ---------- 20,623,532 AGRICULTURE - 0.16% Archer-Daniels-Midland Company 67,873 1,033,027 Monsanto Company 27,499 791,421 ---------- 1,824,448 AIR TRAVEL - 0.13% Delta Air Lines, Inc. * (a) 12,958 153,034 Southwest Airlines Company * 82,623 1,333,535 ---------- 1,486,569 ALUMINUM - 0.31% Alcoa, Inc. 90,827 3,451,426 ---------- APPAREL & TEXTILES - 0.39% Cintas Corp. 17,924 898,530 Jones Apparel Group, Inc. 13,260 467,150 Liz Claiborne, Inc. 11,454 406,159 NIKE, Inc., Class B 27,543 1,885,594 Reebok International, Ltd. 6,181 243,037 V.F. Corp. 11,342 490,428 ---------- 4,390,898 AUTO PARTS - 0.22% AutoZone, Inc. * 9,316 793,816 Dana Corp. 15,599 286,242 Delphi Corp. * 58,808 600,430 Genuine Parts Company 18,260 606,232 Visteon Corp. (a) 13,722 142,846 ---------- 2,429,566 AUTO SERVICES - 0.05% AutoNation, Inc. * 28,872 530,379 ---------- AUTOMOBILES - 0.65% Ford Motor Company * 192,185 3,074,960 General Motors Corp. 58,856 3,142,910 PACCAR, Inc. 12,247 1,042,465 ---------- 7,260,335 BANKING - 6.21% AmSouth BanCorp 36,848 902,776 Bank of America Corp. 155,949 12,542,978 Bank of New York Company, Inc. * 81,195 2,689,178 Bank One Corp. 117,337 5,349,394 BB&T Corp. 57,371 2,216,815 Comerica, Inc. 18,405 1,031,784 Fifth Third Bancorp 59,724 3,529,688 First Tennessee National Corp. 13,173 580,929 FleetBoston Financial Corp. * 110,686 4,831,444 Golden West Financial Corp. 15,946 1,645,468 Huntington Bancshares, Inc. 24,024 540,540 KeyCorp 43,993 1,289,875 Marshall & Ilsley Corp. 23,767 909,088 National City Corp. 63,806 2,165,576 North Fork BanCorp, Inc. 15,919 644,242 Northern Trust Corp. 23,128 1,073,602 Southtrust Corp. 34,827 1,139,888 SunTrust Banks, Inc. 29,549 2,112,753 Union Planters Corp. 19,791 623,219
The accompanying notes are an integral part of the financial statements. 283 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ------------ BANKING - CONTINUED US Bancorp 202,440 $ 6,028,663 Wachovia Corp. 138,941 6,473,261 Wells Fargo & Company 177,594 10,458,511 Zions BanCorp 9,432 578,465 ------------ 69,358,137 BIOTECHNOLOGY - 1.19% Amgen, Inc. * 135,392 8,367,226 Applera Corp.-Applied Biosystems Group * 21,834 452,182 Biogen Idec, Inc. * 34,384 1,264,644 Chiron Corp. * 19,703 1,122,874 Genzyme Corp. * 23,526 1,160,773 MedImmune, Inc. * 25,981 659,917 Millipore Corp. * 5,123 220,545 ------------ 13,248,161 BROADCASTING - 1.12% Clear Channel Communications, Inc. 64,611 3,025,733 Univision Communications, Inc., Class A * (a) 33,849 1,343,467 Viacom, Inc., Class B 183,599 8,148,124 ------------ 12,517,324 BUILDING MATERIALS & CONSTRUCTION - 0.19% American Standard Companies, Inc. * 7,642 769,549 Masco Corp. 48,612 1,332,455 ------------ 2,102,004 BUSINESS SERVICES - 1.87% Automatic Data Processing, Inc. 62,392 2,471,347 BMC Software, Inc. * 23,747 442,882 Cendant Corp. * 106,346 2,368,325 Charles Schwab Corp. 142,387 1,685,862 Computer Sciences Corp. * 19,661 869,606 Concord EFS, Inc. * 48,819 724,474 Convergys Corp. * 15,014 262,144 Deluxe Corp. 5,305 219,256 Electronic Data Systems Corp. 50,419 1,237,282 Equifax, Inc. 14,597 357,627 First Data Corp. * 76,496 3,143,221 Fiserv, Inc. * 20,343 803,752 Fluor Corp. * 8,611 341,340 Moody's Corp. 15,618 945,670 NCR Corp. * 9,929 385,245 Paychex, Inc. 39,573 1,472,116 Pitney Bowes, Inc. 24,518 995,921 R.R. Donnelley & Sons Company (a) 11,926 359,569 Robert Half International, Inc. * 17,971 419,443 SunGuard Data Systems, Inc. * 30,154 835,567 Unisys Corp. * 34,680 514,998 ------------ 20,855,647 CABLE AND TELEVISION - 1.46% Comcast Corp., Class A * 236,256 7,765,735 Time Warner, Inc. * 474,599 8,538,036 ------------ 16,303,771 CELLULAR COMMUNICATIONS - 0.55% AT&T Wireless Services, Inc. * 284,910 2,276,431 Nextel Communications, Inc., Class A * 115,406 3,238,292 Sprint Corp. (PCS Group) * 108,641 610,563 ------------ 6,125,286 CHEMICALS - 1.37% Air Products & Chemicals, Inc., 23,853 1,260,154 Ashland, Inc. 7,201 317,276 Dow Chemical Company * 96,619 4,016,452 E.I. Du Pont De Nemours & Company 104,621 4,801,058 Eastman Chemical Company * (a) 8,120 320,984 Engelhard Corp. 13,168 394,381 Great Lakes Chemical Corp. (a) 5,311 144,406 Hercules, Inc. * 11,641 142,020 PPG Industries, Inc. 17,835 1,141,797 Praxair, Inc. 34,130 1,303,766 Rohm & Haas Company 23,370 998,133 Sigma-Aldrich Corp. 7,278 416,156 ------------ 15,256,583 COLLEGES & UNIVERSITIES - 0.11% Apollo Group, Inc., Class A * 18,511 1,258,748 ------------ COMPUTERS & BUSINESS EQUIPMENT - 3.75% Apple Computer, Inc. * 38,048 813,086 Dell, Inc. * 268,741 9,126,444 EMC Corp. * 252,238 3,258,915 Gateway, Inc. * 34,048 156,621 Hewlett-Packard Company * 320,036 7,351,227 International Business Machines Corp. 180,574 16,735,598 Lexmark International, Inc. * 13,485 1,060,460 Network Appliance, Inc. * 36,214 743,474 Sun Microsystems, Inc. * 342,877 1,539,518 Xerox Corp. * (a) 83,113 1,146,959 ------------ 41,932,302 CONSTRUCTION MATERIALS - 0.09% Sherwin-Williams Company 15,301 531,557 Vulcan Materials Company 10,674 507,762 ------------ 1,039,319 CONSTRUCTION & MINING EQUIPMENT - 0.02% Rowan Companies, Inc. * 9,873 228,757 ------------ CONTAINERS & GLASS - 0.14% Ball Corp. 5,915 352,356 Bemis Company, Inc. 5,575 278,750 Pactiv Corp. * 16,504 394,446 Sealed Air Corp. * 8,919 482,875 ------------ 1,508,427 COSMETICS & TOILETRIES - 2.31% Alberto Culver Company, Class B 6,169 389,141 Avon Products, Inc. 24,824 1,675,372 Colgate-Palmolive Company 56,388 2,822,219 International Flavors & Fragrances, Inc. 9,830 343,264 Kimberly-Clark Corp. 52,948 3,128,697 The Gillette Company * 106,190 3,900,359 The Procter & Gamble Company 136,104 13,594,067 ------------ 25,853,119 CRUDE PETROLEUM & NATURAL GAS - 0.71% Anadarko Petroleum Corp. 26,334 1,343,297 Apache Corp. (a) 17,007 1,379,268 Burlington Resources, Inc. 20,849 1,154,618 Devon Energy Corp. 24,409 1,397,659 EOG Resources, Inc. 12,079 557,688 Occidental Petroleum Corp. * 40,422 1,707,425 Sunoco, Inc. 8,107 414,673 ------------ 7,954,628 DOMESTIC OIL - 0.28% Amerada Hess Corp. * 9,433 501,553 Kerr-McGee Corp. * 10,585 492,097 Marathon Oil Corp. 32,563 1,077,510 Unocal Corp. * 27,179 1,001,002 ------------ 3,072,162 ELECTRICAL EQUIPMENT - 3.51% American Power Conversion Corp. 20,840 509,538 Cooper Industries, Ltd., Class A * 9,798 567,598 Emerson Electric Company 44,167 2,859,813
The accompanying notes are an integral part of the financial statements. 284 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ------------ ELECTRICAL EQUIPMENT - CONTINUED General Electric Company 1,053,882 $ 32,649,264 Johnson Controls, Inc. * 9,480 1,100,818 Molex, Inc. * (a) 19,980 697,102 Power-One, Inc. * (a) 8,740 94,654 Symbol Technologies, Inc. 24,200 408,738 Tektronix, Inc. 8,874 280,419 ------------ 39,167,944 ELECTRIC UTILITIES - 2.18% Allegheny Energy, Inc. * 13,327 170,052 Ameren Corp. 17,045 784,070 American Electric Power, Inc. 41,460 1,264,945 CenterPoint Energy, Inc. (a) 32,126 311,301 Cinergy Corp. 18,690 725,359 CMS Energy Corp. (a) 16,912 144,090 Consolidated Edison, Inc. 23,664 1,017,789 Constellation Energy Group, Inc. 17,557 687,532 Dominion Resources, Inc. 34,050 2,173,411 DTE Energy Company * 17,665 696,001 Duke Energy Corp. * 95,254 1,947,944 Edison International 34,197 749,940 Entergy Corp. 24,015 1,371,977 Exelon Corp. 34,324 2,277,741 FirstEnergy Corp. 34,619 1,218,589 FPL Group, Inc. 19,307 1,263,064 PG&E Corp. * 43,533 1,208,911 Pinnacle West Capital Corp. 9,580 383,392 PPL Corp. 18,612 814,275 Public Service Enterprise Group, Inc. 24,682 1,081,072 TECO Energy, Inc. (a) 19,713 284,064 The AES Corp. * 65,357 616,970 The Southern Company 76,851 2,324,743 TXU Corp. * 33,995 806,361 ------------ 24,323,593 ELECTRONICS - 0.34% Agilent Technologies, Inc. * 49,909 1,459,339 Jabil Circuit, Inc. * 20,965 593,309 Sanmina-SCI Corp. * 54,298 684,698 Solectron Corp. * 87,746 518,579 Thermo Electron Corp. * 17,090 430,668 Thomas & Betts Corp. 6,137 140,476 ------------ 3,827,069 ENERGY - 0.25% Calpine Corp. * (a) 43,362 208,571 Progress Energy, Inc. 25,722 1,164,178 Sempra Energy * 23,746 713,805 Xcel Energy, Inc. * (a) 41,860 710,783 ------------ 2,797,337 FINANCIAL SERVICES - 8.78% American Express Company, 135,007 6,511,388 Bear Stearns Companies, Inc. 10,288 822,526 Capital One Financial Corp. (a) 24,237 1,485,486 Charter One Financial, Inc. 23,367 807,330 Citigroup, Inc. 541,451 26,282,031 Countrywide Financial Corp. 30,510 2,314,209 Federal Home Loan Mortgage Corp. 73,021 4,258,585 Federal National Mortgage Association 101,985 7,654,994 Federated Investors, Inc., Class B 11,405 334,851 Franklin Resources, Inc. 26,343 1,371,416 H & R Block, Inc. 18,712 1,036,083 J.P. Morgan Chase & Company * 214,145 7,865,546 Janus Capital Group, Inc. (a) 25,261 414,533 Lehman Brothers Holdings, Inc. 28,499 2,200,693 MBIA, Inc. 15,128 896,031 MBNA Corp. 134,104 3,332,484 Mellon Financial Corp. 45,157 1,449,991 Merrill Lynch & Company, Inc. 99,218 5,819,136 Morgan Stanley 113,675 6,578,372 PNC Financial Services Group 29,101 1,592,698 Providian Financial Corp. * 30,462 354,578 Regions Financial Corp. 23,318 867,430 SLM Corp. 47,318 1,782,942 State Street Corp. (b) 35,079 1,826,914 Synovus Financial Corp. (a) 31,673 915,983 T. Rowe Price Group, Inc. 13,070 619,649 The Goldman Sachs Group, Inc. 49,695 4,906,387 Washington Mutual, Inc. 94,394 3,787,087 ------------ 98,089,353 FOOD & BEVERAGES - 3.67% Anheuser-Busch Companies, Inc. 85,517 4,505,036 Campbell Soup Company * 43,070 1,154,276 Coca-Cola Enterprises, Inc. 47,746 1,044,205 ConAgra Foods, Inc. 56,355 1,487,208 General Mills, Inc. * 39,189 1,775,262 H.J. Heinz Company 36,932 1,345,433 Hershey Foods Corp. 13,657 1,051,452 Kellogg Company 42,838 1,631,271 McCormick & Company, Inc. 14,571 438,587 PepsiCo, Inc. 180,189 8,400,411 Sara Lee Corp. * 82,950 1,800,844 Starbucks Corp. * 41,048 1,357,047 The Coca-Cola Company 257,309 13,058,432 The Pepsi Bottling Group, Inc. * 27,581 666,909 William Wrigley Jr. Company 23,590 1,325,994 ------------ 41,042,367 FOREST PRODUCTS - 0.13% Weyerhaeuser Company * 23,072 1,476,608 ------------ FURNITURE & FIXTURES - 0.04% Leggett & Platt, Inc. 20,146 435,758 ------------ GAS & PIPELINE UTILITIES - 0.32% Dynegy, Inc., Class A (a) 39,569 169,355 El Paso Corp. (a) 63,838 522,833 KeySpan Corp. * (a) 16,695 614,376 Kinder Morgan, Inc. 12,934 764,400 Nicor, Inc. (a) 4,622 157,333 NiSource, Inc. 27,548 604,403 Peoples Energy Corp. (a) 3,863 162,401 Williams Companies, Inc. 54,388 534,090 ------------ 3,529,191 HEALTHCARE PRODUCTS - 3.29% Bausch & Lomb, Inc. * 5,503 285,606 Baxter International, Inc. * 64,057 1,955,020 Becton Dickinson & Company 26,653 1,096,504 Biomet, Inc. 26,835 977,062 Boston Scientific Corp. * 85,978 3,160,551 C.R. Bard, Inc. 5,443 442,244 Guidant Corp. 31,698 1,908,220 Johnson & Johnson 311,534 16,093,846 Medtronic, Inc. 127,218 6,184,067 St. Jude Medical, Inc. * 18,108 1,110,926 Stryker Corp. 20,938 1,779,939 Zimmer Holdings, Inc. * 25,382 1,786,893 ------------ 36,780,878 HEALTHCARE SERVICES - 1.04% Express Scripts, Inc. * (a) 8,244 547,649 HCA, Inc. * 52,008 2,234,264
The accompanying notes are an integral part of the financial statements. 285 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ------------ HEALTHCARE SERVICES - CONTINUED Humana, Inc. * 16,908 $ 386,348 IMS Health, Inc. 25,134 624,831 McKesson Corp. * 30,587 983,678 Medco Health Solutions, Inc. * 28,371 964,330 Quest Diagnostics, Inc. 10,911 797,703 UnitedHealth Group, Inc. 61,574 3,582,375 Wellpoint Health Networks, Inc., Class A * 15,948 1,546,797 ------------ 11,667,975 HOMEBUILDERS - 0.15% Centex Corp. * (a) 6,524 702,308 KB HOME 4,865 352,810 Pulte Homes, Inc. * 6,513 609,747 ------------ 1,664,865 HOTELS & RESTAURANTS - 0.75% Darden Restaurants, Inc. 17,304 364,076 Harrah's Entertainment, Inc. (a) 11,594 577,033 Hilton Hotels Corp. 39,821 682,134 Marriott International, Inc., Class A 24,270 1,121,274 McDonald's Corp. 133,211 3,307,629 Starwood Hotels & Resorts Worldwide, Inc. * 21,228 763,571 Wendy's International, Inc. 11,959 469,271 Yum! Brands, Inc. * 30,874 1,062,066 ------------ 8,347,054 HOUSEHOLD APPLIANCES - 0.13% Black & Decker Corp. 8,159 402,402 Maytag Corp. 8,245 229,623 The Stanley Works (a) 8,507 322,160 Whirlpool Corp. (a) 7,311 531,144 ------------ 1,485,329 HOUSEHOLD PRODUCTS - 0.26% Fortune Brands, Inc. 15,310 1,094,512 Newell Rubbermaid, Inc. 28,801 655,799 The Clorox Company 22,149 1,075,555 Tupperware Corp. * 6,134 106,364 ------------ 2,932,230 INDUSTRIAL MACHINERY - 0.83% Caterpillar, Inc. 36,446 3,025,747 Cummins, Inc. (a) 4,440 217,294 Deere & Company * 25,190 1,638,609 Dover Corp. 21,256 844,926 Ingersoll-Rand Company, Class A 18,208 1,235,959 ITT Industries, Inc. 9,685 718,724 Pall Corp. 13,117 351,929 Parker-Hannifin Corp. 12,445 740,478 W.W. Grainger, Inc. 9,578 453,901 ------------ 9,227,567 INDUSTRIALS - 0.08% Crane Company 6,237 191,725 Rockwell Automation, Inc 19,568 696,621 ------------ 888,346 INSURANCE - 4.77% ACE, Ltd. 29,292 1,213,275 Aetna, Inc. 16,014 1,082,226 AFLAC, Inc. 53,826 1,947,425 Ambac Financial Group, Inc. 11,215 778,209 American International Group, Inc. 273,728 18,142,692 Anthem, Inc. * 14,514 1,088,550 Aon Corp. 32,916 788,009 Chubb Corp. 19,709 1,342,183 CIGNA Corp. * 14,746 847,895 Cincinnati Financial Corp. 16,838 705,175 Hartford Financial Services Group, Inc. 29,693 1,752,778 Jefferson-Pilot Corp. 14,805 749,873 John Hancock Financial Services, Inc. 30,366 1,138,725 Lincoln National Corp. 18,681 754,152 Loews Corp. 19,464 962,495 Marsh & McLennan Companies, Inc. 55,654 2,665,270 MetLife, Inc. 79,786 2,686,394 MGIC Investment Corp. (a) 10,333 588,361 Principal Financial Group, Inc. 33,898 1,121,007 Progressive Corp. 22,671 1,895,069 Prudential Financial, Inc. 56,731 2,369,654 SAFECO Corp. * 14,543 566,159 The Allstate Corp. 73,847 3,176,898 The St. Paul Companies, Inc. * 23,947 949,498 Torchmark, Inc. 11,879 540,970 Travelers Property Casualty Corp., Class B 105,466 1,789,758 UNUMProvident Corp. 31,074 490,037 XL Capital, Ltd., Class A 14,408 1,117,340 ------------ 53,250,077 INTERNATIONAL OIL - 0.42% ConocoPhillips 71,454 4,685,239 ------------ INTERNET CONTENT - 0.28% Yahoo!, Inc. * 68,993 3,116,414 ------------ INTERNET RETAIL - 0.39% eBay, Inc. * 67,802 4,379,331 ------------ INTERNET SOFTWARE - 1.68% Cisco Systems, Inc. * 724,569 17,599,781 Symantec Corp. * 32,334 1,120,373 ------------ 18,720,154 LEISURE TIME - 0.83% Brunswick Corp. 9,606 305,759 Carnival Corp. 66,115 2,626,749 International Game Technology 36,339 1,297,302 The Walt Disney Company * 214,680 5,008,485 ------------ 9,238,295 LIFE SCIENCES - 0.06% PerkinElmer, Inc. * 13,314 227,270 Waters Corp. * 12,744 422,591 ------------ 649,861 LIQUOR - 0.07% Adolph Coors Company, Class B 3,821 214,358 Brown Forman Corp., Class B 6,369 595,183 ------------ 809,541 MANUFACTURING - 1.60% 3M Company 82,381 7,004,856 Danaher Corp. * 16,117 1,478,735 Eaton Corp. 7,977 861,356 Illinois Tool Works, Inc. 32,340 2,713,649 Snap-on, Inc. 6,115 197,148 Tyco International, Ltd. * 209,823 5,560,310 ------------ 17,816,054 MEDICAL-HOSPITALS - 0.15% Health Management Associates, Inc., Class A 25,171 604,104 Manor Care, Inc. 9,356 323,437 Tenet Healthcare Corp. * 48,783 782,967 ------------ 1,710,508
The accompanying notes are an integral part of the financial statements. 286 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------ ------------ MINING - 0.33% Freeport-McMoRan Copper & Gold, Inc., Class B * (a) 17,939 $ 755,770 Newmont Mining Corp. 45,349 2,204,415 Phelps Dodge Corp. 9,378 713,572 ------------ 3,673,757 NEWSPAPERS - 0.10% Dow Jones & Company, Inc. 8,561 426,766 Knight-Ridder, Inc. 8,386 648,825 ------------ 1,075,591 OFFICE FURNISHINGS & SUPPLIES - 0.23% Avery Dennison Corp. 11,595 649,552 Office Depot, Inc. * 32,867 549,207 Staples, Inc. * 51,970 1,418,781 ------------ 2,617,540 PAPER - 0.45% Boise Cascade Corp. * 9,076 298,238 Georgia-Pacific Corp. 26,673 818,061 International Paper Company 50,429 2,173,994 Louisiana-Pacific Corp. * 11,114 198,718 MeadWestvaco Corp. 21,051 626,267 Plum Creek Timber Company, Inc. 19,207 584,853 Temple-Inland, Inc. 5,696 356,969 ------------ 5,057,100 PETROLEUM SERVICES - 4.15% Baker Hughes, Inc. 35,145 1,130,263 BJ Services Company * 16,613 596,407 ChevronTexaco Corp. 112,197 9,692,699 Exxon Mobil Corp. 693,760 28,444,160 Halliburton Company 45,979 1,195,454 Nabors Industries, Ltd. * 15,386 638,519 Noble Corp. * 14,042 502,423 Schlumberger, Ltd. * 61,448 3,362,434 Transocean, Inc. * 33,576 806,160 ------------ 46,368,519 PHARMACEUTICALS - 6.92% Abbott Laboratories, 164,088 7,646,501 Allergan, Inc. 13,691 1,051,606 AmerisourceBergen Corp. 11,745 659,482 Bristol-Myers Squibb Company * 203,546 5,821,415 Cardinal Health, Inc. 45,441 2,779,171 Eli Lilly & Company 117,859 8,289,023 Forest Laboratories, Inc. * 38,376 2,371,637 King Pharmaceuticals, Inc. * 25,310 386,231 Merck & Company, Inc. 233,534 10,789,271 Pfizer, Inc. 800,999 28,299,295 Schering-Plough Corp. 154,229 2,682,042 Watson Pharmaceuticals, Inc. * 11,331 521,226 Wyeth 139,785 5,933,873 ------------ 77,230,773 PHOTOGRAPHY - 0.07% Eastman Kodak Company 30,079 772,128 ------------ PUBLISHING - 0.61% American Greetings Corp., Class A * (a) 6,976 152,565 Gannett Company, Inc. 28,450 2,536,602 McGraw-Hill Companies, Inc. 20,110 1,406,091 Meredith Corp. 5,265 256,985 The New York Times Company, Class A 15,634 747,149 Tribune Company 32,774 1,691,138 ------------ 6,790,530 RAILROADS & EQUIPMENT - 0.44% Burlington Northern Santa Fe Corp. 38,963 $1,260,453 CSX Corp. 22,463 807,320 Norfolk Southern Corp. 40,978 969,130 Union Pacific Corp. 26,784 1,860,952 ------------ 4,897,855 REAL ESTATE - 0.35% Apartment Investment & Management Company, Class A, REIT 9,888 341,136 Equity Office Properties Trust, REIT 41,959 1,202,125 Equity Residential, REIT * 28,912 853,193 ProLogis, REIT 18,884 605,988 Simon Property Group, Inc., REIT 20,079 930,461 ------------ 3,932,903 RETAIL GROCERY - 0.57% Albertsons, Inc. * 38,512 872,297 Safeway, Inc. * 46,423 1,017,128 SUPERVALU, Inc. 14,074 402,375 Sysco Corp. 67,925 2,528,848 The Kroger Company * 78,205 1,447,574 Winn-Dixie Stores, Inc. (a) 14,865 147,907 ------------ 6,416,129 RETAIL TRADE - 5.77% Bed Bath & Beyond, Inc. * 31,080 1,347,318 Best Buy Company, Inc. 33,968 1,774,488 Big Lots, Inc. * 12,269 174,343 Circuit City Stores-Circuit City Group * 21,985 222,708 Costco Wholesale Corp. * 48,045 1,786,313 CVS Corp. 41,452 1,497,246 Dillard's, Inc., Class A * (a) 8,742 143,893 Dollar General Corp. 35,372 742,458 Family Dollar Stores, Inc. 18,097 649,320 Federated Department Stores, Inc. 18,976 894,339 Home Depot, Inc. 238,805 8,475,189 J.C. Penney Company, Inc. * 28,657 753,106 Kohl's Corp. * 35,687 1,603,774 Limited Brands, Inc. 54,231 977,785 Lowe's Companies, Inc. 82,535 4,571,614 May Department Stores Company 30,289 880,501 Nordstrom, Inc. 14,425 494,778 RadioShack Corp. 17,225 528,463 Sears, Roebuck & Company * 26,641 1,211,899 Target Corp. 95,666 3,673,574 The Gap, Inc. * 94,026 2,182,344 The TJX Companies, Inc. 52,823 1,164,747 Tiffany & Company 15,391 695,673 Wal-Mart Stores, Inc. 454,241 24,097,485 Walgreen Company 107,604 3,914,634 ------------ 64,457,992 SANITARY SERVICES - 0.26% Allied Waste Industries, Inc. * 22,012 305,526 Ecolab, Inc. 27,043 740,167 Waste Management, Inc. 61,135 1,809,596 ------------ 2,855,289 SEMICONDUCTORS - 4.11% Advanced Micro Devices, Inc. * 36,588 545,161 Altera Corp. * 39,753 902,393 Analog Devices, Inc. 38,552 1,759,899 Applied Materials, Inc. * 174,562 3,918,917 Applied Micro Circuits Corp. * 32,222 192,688 Broadcom Corp., Class A * 31,785 1,083,551 Intel Corp. 685,594 22,076,127 KLA-Tencor Corp. * 20,437 1,199,039 Linear Technology Corp. 32,790 1,379,475 LSI Logic Corp. * (a) 39,785 352,893
The accompanying notes are an integral part of the financial statements. 287 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- -------------- SEMICONDUCTORS - CONTINUED Maxim Integrated Products, Inc. 34,490 $ 1,717,602 Micron Technology, Inc. * 64,089 863,279 National Semiconductor Corp. * 19,458 766,840 Novellus Systems, Inc. * 15,989 672,337 NVIDIA Corp. * (a) 17,022 395,761 PMC-Sierra, Inc. * 18,134 365,400 QLogic Corp. * 9,915 511,614 Teradyne, Inc. * 20,083 511,112 Texas Instruments, Inc. 181,645 5,336,730 Xilinx, Inc. * 35,932 1,392,006 -------------- 45,942,824 SOFTWARE - 4.38% Adobe Systems, Inc. 24,562 965,287 Autodesk, Inc. * 11,713 287,906 Citrix Systems, Inc. * 17,226 365,363 Computer Associates International, Inc. * 60,780 1,661,725 Compuware Corp. * (a) 40,313 243,491 Electronic Arts, Inc. * 31,264 1,493,794 Intuit, Inc. * 20,834 1,102,327 Mercury Interactive Corp. * 9,450 459,648 Microsoft Corp. 1,134,869 31,254,292 Novell, Inc. * 39,195 412,331 Oracle Corp. * 548,585 7,241,322 Parametric Technology Corp. * 27,947 110,111 PeopleSoft, Inc. * 39,353 897,248 Siebel Systems, Inc. * 52,047 721,892 VERITAS Software Corp. * 44,878 1,667,667 -------------- 48,884,404 STEEL - 0.10% Allegheny Technologies, Inc. (a) 8,464 111,894 Nucor Corp. 8,217 460,152 United States Steel Corp. (a) 10,840 379,617 Worthington Industries, Inc. (a) 9,037 162,937 -------------- 1,114,600 TELECOMMUNICATIONS EQUIPMENT & SERVICES - 2.07% ADC Telecommunications, Inc. * 84,477 250,897 Andrew Corp. * (a) 16,117 185,507 Avaya, Inc. * 43,735 565,931 CIENA Corp. * 49,729 330,200 Citizens Communications Company * 29,854 370,787 Comverse Technology, Inc. * 20,239 356,004 Corning, Inc. * 139,569 1,455,705 JDS Uniphase Corp. * 150,609 549,723 Lucent Technologies, Inc. * (a) 440,152 1,250,032 Motorola, Inc. * 244,321 3,437,596 QUALCOMM, Inc. 83,975 4,528,772 SBC Communications, Inc. 347,486 9,058,960 Scientific-Atlanta, Inc. 15,938 435,107 Tellabs, Inc. * 43,792 369,166 -------------- 23,144,387 TELEPHONE - 1.94% ALLTEL Corp. 32,755 1,525,728 AT&T Corp. 82,905 1,682,972 BellSouth Corp. 193,977 5,489,549 CenturyTel, Inc. 15,136 493,736 Qwest Communications International, Inc. * 185,600 801,792 Sprint Corp. (FON Group) 94,878 1,557,897 Verizon Communications, Inc. * 289,850 10,167,938 -------------- 21,719,612 TIRES & RUBBER - 0.03% Cooper Tire & Rubber Company 7,751 165,716 Goodyear Tire & Rubber Company * (a) 18,402 144,640 -------------- 310,356 TOBACCO - 1.14% Altria Group, Inc. 213,190 11,601,800 R.J. Reynolds Tobacco Holdings, Inc. * (a) 8,883 516,546 UST, Inc. 17,407 621,256 -------------- 12,739,602 TOYS, AMUSEMENTS & SPORTING GOODS - 0.14% Hasbro, Inc. * 18,314 389,722 Mattel, Inc. 45,121 869,482 Toys `R' Us, Inc. * 22,407 283,224 -------------- 1,542,428 TRANSPORTATION - 0.14% Harley-Davidson, Inc. 31,800 1,511,454 -------------- TRAVEL SERVICES - 0.03% Sabre Holdings Corp. 15,058 325,102 -------------- TRUCKING & FREIGHT - 1.03% Fedex Corp. 31,309 2,113,357 Navistar International Corp. * 7,210 345,287 Ryder Systems, Inc. 6,732 229,898 United Parcel Service, Inc., Class B 118,000 8,796,900 -------------- 11,485,442 TOTAL COMMON STOCK (Cost: $1,153,984,594) $1,080,217,148 --------------
PRINCIPAL AMOUNT VALUE ----------- -------------- SHORT TERM INVESTMENTS - 1.67% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $16,796,934 $ 16,796,934 United States Treasury Bills, 0.80% due 01/22/2004 **** 1,800,000 1,799,030 -------------- $ 18,595,964 REPURCHASE AGREEMENTS - 1.61% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.70%, to be repurchased at $18,032,701 on 01/02/2004, collateralized by $12,880,000 U.S. Treasury Bonds, 8.500% due 02/15/2020 (valued at $18,394,250, including interest). $18,032,000 $ 18,032,000 -------------- TOTAL INVESTMENTS (500 INDEX TRUST) (Cost: $1,190,612,558) $1,116,845,112 ==============
The accompanying notes are an integral part of the financial statements. 288 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) LIFESTYLE AGGRESSIVE 1000 TRUST
SHARES VALUE --------- -------------- INVESTMENT COMPANIES - 100.00% MANUFACTURERS INVESTMENT TRUST Aggressive Growth Trust Series I 493,958 $ 6,559,757 Aggressive Growth Trust Series II 238,066 3,154,369 Aggressive Growth Trust Series III 7 92 All Cap Growth Trust Series I 455,222 6,559,753 All Cap Growth Trust Series II 219,511 3,154,369 All Cap Growth Trust Series III 6 92 All Cap Value Trust Series I 521,443 6,559,755 All Cap Value Trust Series II 251,545 3,154,369 All Cap Value Trust Series III 7 92 American Blue Chip Income and Growth Trust Series II 629,159 9,714,218 American International Trust Series II 583,086 9,714,217 Blue Chip Growth Trust Series I 1,906,906 29,518,906 Blue Chip Growth Trust Series II 919,939 14,194,659 Blue Chip Growth Trust Series III 27 414 Emerging Small Company Trust Series I 763,354 19,679,271 Emerging Small Company Trust Series II 367,928 9,463,106 Emerging Small Company Trust Series III 11 276 Equity-Income Trust Series I 2,154,979 32,798,785 Equity-Income Trust Series II 1,039,673 15,771,843 Equity-Income Trust Series III 30 461 Fundamental Value Trust Series I 2,064,440 26,239,028 Fundamental Value Trust Series II 995,069 12,617,474 Fundamental Value Trust Series III 29 368 International Equity Select Trust Series I 965,380 13,119,512 International Equity Select Trust Series II 465,246 6,308,737 International Equity Select Trust Series III 14 184 International Small Cap Trust Series I 1,349,744 19,679,270 International Small Cap Trust Series II 649,939 9,463,106 International Small Cap Trust Series III 19 276 International Stock Trust Series I 2,369,365 22,959,149 International Stock Trust Series II 1,140,526 11,040,290 International Stock Trust Series III 33 322 International Value Trust Series I 798,024 9,839,635 International Value Trust Series II 384,992 4,731,553 International Value Trust Series III 11 138 Mid Cap Stock Trust Series I 1,105,267 13,119,514 Mid Cap Stock Trust Series II 532,833 6,308,737 Mid Cap Stock Trust Series III 16 184 Mid Cap Value Trust Series I 895,530 13,119,514 Mid Cap Value Trust Series II 431,514 6,308,737 Mid Cap Value Trust Series III 13 184 Natural Resources Trust Series I 546,646 9,839,635 Natural Resources Trust Series II 263,156 4,731,553 Natural Resources Trust Series III 8 138 Overseas Trust Series I 3,084,525 29,518,906 Overseas Trust Series II 1,486,352 14,194,659 Overseas Trust Series III 43 414 Small Cap Opportunities Trust Series I 562,265 9,839,635 Small Cap Opportunities Trust Series II 270,684 4,731,553 Small Cap Opportunities Trust Series III 8 135 Small Company Value Trust Series I 382,716 6,559,755 Small Company Value Trust Series II 184,466 3,154,369 Small Company Value Trust Series III 5 92 Small-Mid Cap Trust Series I 1,081,575 13,119,509 Small-Mid Cap Trust Series II 521,383 6,308,737 Small-Mid Cap Trust Series III 15 184 Special Value Trust Series I 621,974 9,839,636 Special Value Trust Series II 299,465 4,731,553 Special Value Trust Series III 9 138 Strategic Growth Trust Series I 1,630,158 16,399,392 Strategic Growth Trust Series II 785,450 7,885,921 Strategic Growth Trust Series III 23 230 -------------- TOTAL INVESTMENTS (LIFESTYLE AGGRESSIVE 1000 TRUST) (Cost: $398,289,291) $ 485,710,860 ==============
LIFESTYLE GROWTH 820 TRUST
SHARES VALUE --------- -------------- INVESTMENT COMPANIES - 100.00% MANUFACTURERS INVESTMENT TRUST All Cap Growth Trust Series I 2,548,669 $ 36,726,315 All Cap Growth Trust Series II 1,360,132 19,545,103 All Cap Growth Trust Series III 28 397 All Cap Value Trust Series I 3,892,561 48,968,421 All Cap Value Trust Series II 2,078,161 26,060,138 All Cap Value Trust Series III 42 529 American Blue Chip Income and Growth Trust Series II 2,429,698 37,514,543 American International Trust Series II 2,251,773 37,514,543 Blue Chip Growth Trust Series I 5,535,836 85,694,735 Blue Chip Growth Trust Series II 2,955,622 45,605,241 Blue Chip Growth Trust Series III 60 926 Capital Appreciation Trust Series I 3,045,300 24,484,210 Capital Appreciation Trust Series II 1,624,697 13,030,069 Capital Appreciation Trust Series III 33 265 Emerging Small Company Trust Series I 949,737 24,484,210 Emerging Small Company Trust Series II 506,612 13,030,069 Emerging Small Company Trust Series III 10 265 Equity-Income Trust Series I 6,434,746 97,936,840 Equity-Income Trust Series II 3,435,747 52,120,276 Equity-Income Trust Series III 70 1,058 Fundamental Value Trust Series I 4,815,935 61,210,528 Fundamental Value Trust Series II 2,569,020 32,575,172 Fundamental Value Trust Series III 52 661 High Grade Bond Trust Series I 2,636,491 36,726,315 High Grade Bond Trust Series II 1,406,123 19,545,103 High Grade Bond Trust Series III 28 397 High Yield Trust Series I 9,842,898 97,936,840 High Yield Trust Series II 5,259,362 52,120,276 High Yield Trust Series III 106 1,058 International Equity Select Trust Series I 2,702,452 36,726,316 International Equity Select Trust Series II 1,441,379 19,545,103 International Equity Select Trust Series III 29 397 International Small Cap Trust Series I 3,358,602 48,968,420 International Small Cap Trust Series II 1,789,845 26,060,138 International Small Cap Trust Series III 36 529 International Stock Trust Series I 6,316,876 61,210,525 International Stock Trust Series II 3,365,204 32,575,172 International Stock Trust Series III 68 661 International Value Trust Series I 1,985,743 24,484,210 International Value Trust Series II 1,060,217 13,030,069 International Value Trust Series III 21 264 Mid Cap Stock Trust Series I 4,125,393 48,968,420 Mid Cap Stock Trust Series II 2,201,025 26,060,138 Mid Cap Stock Trust Series III 45 529 Mid Cap Value Trust Series I 1,671,277 24,484,210 Mid Cap Value Trust Series II 891,250 13,030,069 Mid Cap Value Trust Series III 18 264 Natural Resources Trust Series I 2,040,351 36,726,315 Natural Resources Trust Series II 1,087,047 19,545,103 Natural Resources Trust Series III 22 397 Overseas Trust Series I 5,116,868 48,968,423 Overseas Trust Series II 2,728,810 26,060,138 Overseas Trust Series III 55 529 Quantitative Equity Trust Series I 1,610,803 24,484,210
The accompanying notes are an integral part of the financial statements. 289 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE --------- -------------- INVESTMENT COMPANIES - CONTINUED Quantitative Equity Trust Series II 860,071 $ 13,030,069 Quantitative Equity Trust Series III 17 265 Real Estate Securities Trust Series I 1,174,303 24,484,210 Real Estate Securities Trust Series II 626,747 13,030,069 Real Estate Securities Trust Series III 13 264 Real Return Bond Trust Series I 2,801,397 36,726,315 Real Return Bond Trust Series II 1,491,993 19,545,103 Real Return Bond Trust Series III 30 397 Small Cap Opportunities Trust Series I 1,399,098 24,484,210 Small Cap Opportunities Trust Series II 745,427 13,030,069 Small Cap Opportunities Trust Series III 15 262 Small Company Value Trust Series I 1,428,484 24,484,212 Small Company Value Trust Series II 761,992 13,030,069 Small Company Value Trust Series III 15 265 Small-Mid Cap Trust Series I 3,027,726 36,726,317 Small-Mid Cap Trust Series II 1,615,298 19,545,103 Small-Mid Cap Trust Series III 33 397 Strategic Bond Trust Series I 4,174,631 48,968,420 Strategic Bond Trust Series II 2,229,268 26,060,138 Strategic Bond Trust Series III 45 529 Strategic Growth Trust Series I 3,650,727 36,726,315 Strategic Growth Trust Series II 1,946,723 19,545,103 Strategic Growth Trust Series III 39 397 Strategic Value Trust Series I 2,441,098 24,484,210 Strategic Value Trust Series II 1,303,007 13,030,069 Strategic Value Trust Series III 26 264 Total Return Trust Series I 1,723,027 24,484,210 Total Return Trust Series II 919,553 13,030,069 Total Return Trust Series III 19 264 U.S. Large Cap Trust Series I 1,906,870 24,484,210 U.S. Large Cap Trust Series II 1,018,770 13,030,069 U.S. Large Cap Trust Series III 21 265 -------------- TOTAL INVESTMENTS (LIFESTYLE GROWTH 820 TRUST) (Cost: $1,582,051,108) $1,875,727,180 ==============
LIFESTYLE BALANCED 640 TRUST
SHARES VALUE --------- -------------- INVESTMENT COMPANIES - 100.00% MANUFACTURERS INVESTMENT TRUST All Cap Growth Trust Series I 2,771,508 $ 39,937,436 All Cap Growth Trust Series II 1,544,313 22,191,773 All Cap Growth Trust Series III 83 1,190 All Cap Value Trust Series I 3,174,677 39,937,438 All Cap Value Trust Series II 1,769,679 22,191,774 All Cap Value Trust Series III 95 1,190 American Blue Chip Income and Growth Trust Series II 2,682,660 41,420,267 American International Trust Series II 2,486,210 41,420,267 Blue Chip Growth Trust Series I 4,299,897 66,562,404 Blue Chip Growth Trust Series II 2,397,038 36,986,289 Blue Chip Growth Trust Series III 128 1,983 Capital Appreciation Trust Series I 4,967,343 39,937,437 Capital Appreciation Trust Series II 2,767,054 22,191,773 Capital Appreciation Trust Series III 148 1,190 Equity-Income Trust Series I 5,248,021 79,874,874 Equity-Income Trust Series II 2,925,745 44,383,547 Equity-Income Trust Series III 156 2,380 Fundamental Value Trust Series I 3,142,206 39,937,440 Fundamental Value Trust Series II 1,750,140 22,191,773 Fundamental Value Trust Series III 94 1,190 Growth & Income Trust Series I 1,221,889 26,624,957 Growth & Income Trust Series II 681,147 14,794,516 INVESTMENT COMPANIES - CONTINUED Growth & Income Trust Series III 36 793 High Grade Bond Trust Series I 2,867,009 39,937,437 High Grade Bond Trust Series II 1,596,530 22,191,774 High Grade Bond Trust Series III 85 1,190 High Yield Trust Series I 16,055,251 159,749,746 High Yield Trust Series II 8,957,325 88,767,094 High Yield Trust Series III 478 4,759 International Equity Select Trust Series I 1,959,158 26,624,959 International Equity Select Trust Series II 1,091,041 14,794,516 International Equity Select Trust Series III 58 793 International Small Cap Trust Series I 1,826,129 26,624,958 International Small Cap Trust Series II 1,016,107 14,794,516 International Small Cap Trust Series III 54 793 International Stock Trust Series I 4,121,510 39,937,436 International Stock Trust Series II 2,292,539 22,191,773 International Stock Trust Series III 123 1,190 International Value Trust Series I 2,159,364 26,624,957 International Value Trust Series II 1,203,785 14,794,516 International Value Trust Series III 64 793 Natural Resources Trust Series I 2,218,746 39,937,437 Natural Resources Trust Series II 1,234,248 22,191,774 Natural Resources Trust Series III 66 1,190 Overseas Trust Series I 2,782,128 26,624,961 Overseas Trust Series II 1,549,164 14,794,516 Overseas Trust Series III 83 793 Real Estate Securities Trust Series I 4,469,417 93,187,351 Real Estate Securities Trust Series II 2,490,659 51,780,805 Real Estate Securities Trust Series III 133 2,776 Real Return Bond Trust Series I 5,077,223 66,562,395 Real Return Bond Trust Series II 2,823,381 36,986,289 Real Return Bond Trust Series III 151 1,983 Small-Mid Cap Trust Series I 4,389,936 53,249,918 Small-Mid Cap Trust Series II 2,445,374 29,589,031 Small-Mid Cap Trust Series III 131 1,586 Strategic Bond Trust Series I 7,944,361 93,187,353 Strategic Bond Trust Series II 4,429,496 51,780,805 Strategic Bond Trust Series III 237 2,776 Strategic Growth Trust Series I 2,646,616 26,624,958 Strategic Growth Trust Series II 1,473,557 14,794,516 Strategic Growth Trust Series III 79 793 Strategic Value Trust Series I 2,654,532 26,624,958 Strategic Value Trust Series II 1,479,452 14,794,516 Strategic Value Trust Series III 79 793 Total Return Trust Series I 12,178,904 173,062,226 Total Return Trust Series II 6,786,475 96,164,352 Total Return Trust Series III 363 5,156 U.S. Large Cap Trust Series I 2,073,595 26,624,957 U.S. Large Cap Trust Series II 1,156,725 14,794,516 U.S. Large Cap Trust Series III 62 793 -------------- TOTAL INVESTMENTS (LIFESTYLE BALANCED 640 TRUST) (Cost: $1,806,718,282) $2,071,013,354 ==============
LIFESTYLE MODERATE 460 TRUST
SHARES VALUE --------- -------------- INVESTMENT COMPANIES - 100.00% MANUFACTURERS INVESTMENT TRUST All Cap Growth Trust Series I 961,541 $ 13,855,801 All Cap Growth Trust Series II 596,175 8,567,035 All Cap Growth Trust Series III 3 48 All Cap Value Trust Series I 1,468,553 18,474,401 All Cap Value Trust Series II 910,902 11,422,713 All Cap Value Trust Series III 5 64
The accompanying notes are an integral part of the financial statements. 290 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE --------- -------------- INVESTMENT COMPANIES - CONTINUED American International Trust Series II 897,274 $ 14,948,589 Blue Chip Growth Trust Series I 596,719 9,237,204 Blue Chip Growth Trust Series II 370,146 5,711,357 Blue Chip Growth Trust Series III 2 32 Equity-Income Trust Series I 1,213,824 18,474,404 Equity-Income Trust Series II 752,980 11,422,713 Equity-Income Trust Series III 4 64 Fundamental Value Trust Series I 726,766 9,237,202 Fundamental Value Trust Series II 450,422 5,711,357 Fundamental Value Trust Series III 3 32 High Grade Bond Trust Series I 1,657,789 23,093,001 High Grade Bond Trust Series II 1,027,222 14,278,392 High Grade Bond Trust Series III 6 80 High Yield Trust Series I 5,105,990 50,804,601 High Yield Trust Series II 3,169,774 31,412,462 High Yield Trust Series III 18 176 International Stock Trust Series I 1,429,907 13,855,800 International Stock Trust Series II 885,024 8,567,035 International Stock Trust Series III 5 48 International Value Trust Series I 749,165 9,237,200 International Value Trust Series II 464,716 5,711,357 International Value Trust Series III 3 32 Investment Quality Bond Trust Series I 1,101,415 13,855,800 Investment Quality Bond Trust Series II 682,632 8,567,035 Investment Quality Bond Trust Series III 4 48 Mid Cap Core Trust Series I 1,205,901 18,474,401 Mid Cap Core Trust Series II 746,583 11,422,713 Mid Cap Core Trust Series III 4 60 Overseas Trust Series I 1,930,450 18,474,402 Overseas Trust Series II 1,196,096 11,422,713 Overseas Trust Series III 7 64 Real Estate Securities Trust Series I 1,107,578 23,093,001 Real Estate Securities Trust Series II 686,791 14,278,392 Real Estate Securities Trust Series III 4 80 Real Return Bond Trust Series I 1,409,184 18,474,407 Real Return Bond Trust Series II 871,963 11,422,713 Real Return Bond Trust Series III 5 64 Strategic Bond Trust Series I 2,756,198 32,330,201 Strategic Bond Trust Series II 1,709,987 19,989,748 Strategic Bond Trust Series III 10 112 Strategic Growth Trust Series I 1,377,317 13,855,805 Strategic Growth Trust Series II 853,290 8,567,035 Strategic Growth Trust Series III 5 48 Total Return Trust Series I 6,500,493 92,372,002 Total Return Trust Series II 4,030,597 57,113,566 Total Return Trust Series III 23 320 U.S. Government Securities Trust Series I 3,296,645 46,186,001 U.S. Government Securities Trust Series II 2,044,151 28,556,783 U.S. Government Securities Trust Series III 11 160 U.S. Large Cap Trust Series I 719,408 9,237,200 U.S. Large Cap Trust Series II 446,549 5,711,357 U.S. Large Cap Trust Series III 2 32 -------------- TOTAL INVESTMENTS (LIFESTYLE MODERATE 460 TRUST) (Cost: $676,986,740) $ 747,429,463 ==============
LIFESTYLE CONSERVATIVE 280 TRUST
SHARES VALUE --------- -------------- INVESTMENT COMPANIES - 100.00% MANUFACTURERS INVESTMENT TRUST American International Trust Series II 543,881 $ 9,061,061 Diversified Bond Trust Series I 1,378,217 14,967,436 Diversified Bond Trust Series II 708,509 7,680,241 Diversified Bond Trust Series III 458 4,975 Equity-Income Trust Series I 786,725 11,973,951 Equity-Income Trust Series II 405,023 6,144,192 Equity-Income Trust Series III 262 3,980 Fundamental Value Trust Series I 942,089 11,973,949 Fundamental Value Trust Series II 484,558 6,144,192 Fundamental Value Trust Series III 313 3,980 High Grade Bond Trust Series I 1,074,475 14,967,436 High Grade Bond Trust Series II 552,535 7,680,241 High Grade Bond Trust Series III 357 4,975 High Yield Trust Series I 2,406,824 23,947,897 High Yield Trust Series II 1,239,998 12,288,385 High Yield Trust Series III 800 7,960 Investment Quality Bond Trust Series I 2,379,561 29,934,873 Investment Quality Bond Trust Series II 1,223,943 15,360,481 Investment Quality Bond Trust Series III 791 9,950 Overseas Trust Series I 938,397 8,980,463 Overseas Trust Series II 482,528 4,608,144 Overseas Trust Series III 312 2,985 Real Estate Securities Trust Series I 1,005,008 20,954,409 Real Estate Securities Trust Series II 517,188 10,752,337 Real Estate Securities Trust Series III 334 6,965 Real Return Bond Trust Series I 913,345 11,973,949 Real Return Bond Trust Series II 469,022 6,144,193 Real Return Bond Trust Series III 304 3,980 Strategic Bond Trust Series I 1,275,996 14,967,436 Strategic Bond Trust Series II 656,992 7,680,241 Strategic Bond Trust Series III 424 4,975 Total Return Trust Series I 4,213,212 59,869,745 Total Return Trust Series II 2,168,028 30,720,962 Total Return Trust Series III 1,400 19,901 U.S. Government Securities Trust Series I 4,914,361 68,850,204 U.S. Government Securities Trust Series II 2,528,927 35,329,106 U.S. Government Securities Trust Series III 1,634 22,886 -------------- TOTAL INVESTMENTS (LIFESTYLE CONSERVATIVE 280 TRUST) (Cost: $424,590,077) $ 453,053,036 ==============
SMALL-MID CAP TRUST
SHARES VALUE --------- -------------- COMMON STOCK - 90.22% APPAREL & TEXTILES - 3.16% Cintas Corp. 106,050 $ 5,316,286 -------------- AUTO SERVICES - 2.83% Copart, Inc. * 289,085 4,769,902 -------------- BANKING - 3.50% National Commerce Financial Corp. 216,370 5,902,574 -------------- BUSINESS SERVICES - 7.40% Catalina Marketing Corp. * (a) 193,335 3,897,634 Certegy, Inc. 151,205 4,959,524 Equifax, Inc. 147,545 3,614,852 -------------- 12,472,010 CHEMICALS - 4.19% Valspar Corp. 142,885 7,061,377 -------------- COMPUTERS & BUSINESS EQUIPMENT - 7.12% Fair Isaac Corp. 133,232 6,549,685 Henry, Jack & Associates, Inc. 264,825 5,450,099 -------------- 11,999,784 CONTAINERS & GLASS - 3.40% Bemis Company, Inc. 114,630 5,731,500 --------------
The accompanying notes are an integral part of the financial statements. 291 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
SHARES VALUE ------- ----------- CRUDE PETROLEUM & NATURAL GAS - 3.09% Patina Oil & Gas Corp. 106,300 $ 5,207,637 ------------ ELECTRONICS - 7.79% Teleflex, Inc. (a) 107,520 5,196,442 Zebra Technologies Corp., Class A * 119,290 7,917,277 ------------ 13,113,719 FINANCIAL SERVICES - 3.18% Eaton Vance Corp. 145,940 5,347,242 ------------ FOOD & BEVERAGES - 0.96% Tootsie Roll Industries, Inc. * 44,892 1,616,112 ------------ HEALTHCARE PRODUCTS - 3.32% Diagnostic Products Corp. * 121,740 5,589,083 ------------ HEALTHCARE SERVICES - 6.86% First Health Group Corp. * 204,485 3,979,278 IMS Health, Inc. 304,775 7,576,707 ------------ 11,555,985 INDUSTRIAL MACHINERY - 1.82% Donaldson Company, Inc. 51,800 3,064,488 ------------ INSURANCE - 9.76% Brown & Brown, Inc. (a) 105,600 3,443,616 Cincinnati Financial Corp. 112,040 4,692,235 Reinsurance Group of America, Inc. (a) 133,845 5,173,109 Stancorp Financial Group, Inc. 49,800 3,131,424 ------------ 16,440,384 PHARMACEUTICALS - 2.57% King Pharmaceuticals, Inc. * 283,450 4,325,447 ------------ RETAIL TRADE - 10.45% 99 Cents Only Stores * (a) 176,600 4,808,818 Regis Corp. 143,650 5,677,048 Rent-A-Center, Inc. * 238,425 7,124,139 ------------ 17,610,005 SEMICONDUCTORS - 4.38% Microchip Technology, Inc. 221,300 7,382,568 ------------ TRANSPORTATION - 4.44% C. H. Robinson Worldwide, Inc. 197,290 7,479,264 ------------ TOTAL COMMON STOCK (Cost: $129,872,512) $151,985,367 ------------
PRINCIPAL AMOUNT VALUE ------------ ------------ SHORT TERM INVESTMENTS - 6.79% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 9,626,360 $ 9,626,360 Federal Home Loan Bank Discount Note, 0.75% due 01/02/2004 1,807,000 1,806,962 ------------ $ 11,433,322 REPURCHASE AGREEMENTS - 2.99% Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $5,033,112 on 01/02/2004,collateralized by $3,505,000 U.S.Treasury Inflation-Indexed Bonds, due 04/15/2029 (valued at 3.875% $5,139,206, including interest). $ 5,033,000 $ 5,033,000 ------------ TOTAL INVESTMENTS (SMALL-MID CAP TRUST) (Cost: $146,338,834) $168,451,689 ============
INTERNATIONAL EQUITY SELECT TRUST
SHARES VALUE --------- ------------ COMMON STOCK - 89.50% DENMARK - 1.87% Danske Bank A/S * 100,500 $ 2,355,124 ------------ FINLAND - 3.43% Nokia AB Oyj * 250,000 4,318,480 ------------ FRANCE - 11.17% Aventis SA * 36,900 2,436,190 AXA * 148,600 3,177,270 Societe Generale * (a) 41,400 3,651,337 Total SA, B Shares * 25,800 4,791,491 ------------ 14,056,288 GERMANY - 2.02% Siemens AG NPV * (a) 31,700 2,536,217 ------------ IRELAND - 2.77% Allied Irish Banks PLC * 217,500 3,480,298 ------------ ITALY - 4.70% Eni SPA * (a) 187,700 3,537,931 San Paolo-IMI SPA * (a) 182,500 2,377,589 ------------ 5,915,520 JAPAN - 4.95% Canon, Inc. * 65,200 3,036,804 Kao Corp. * 156,500 3,184,487 ------------ 6,221,291 NETHERLANDS - 8.35% ABN AMRO Holdings NV * 98,800 2,309,162 Heineken NV * (a) 118,900 4,522,707 Royal Dutch Petroleum Company * 69,700 3,670,815 ------------ 10,502,684 SPAIN - 2.93% Endesa SA * (a) 191,500 3,679,528 ------------ SWITZERLAND - 16.67% Compagnie Financiere Richemont AG * 95,900 2,301,972 Credit Suisse Group * 64,400 2,355,209 Nestle SA * 13,900 3,471,349 Novartis AG-Reg Shares * 77,200 3,503,419 Roche Holding AG-Genusschein * 24,100 2,429,867 Swiss Reinsurance * 34,600 2,335,004 UBS AG-Registered * 66,700 4,565,982 ------------ 20,962,802 UNITED KINGDOM - 30.64% Barclays PLC * 507,500 $ 4,513,714 BP PLC * 435,900 3,524,810 Cadbury Schweppes PLC * 655,000 4,796,678 Diageo PLC * 354,400 4,649,773 GlaxoSmithKline PLC * 199,700 4,562,877 HSBC Holdings PLC * 293,800 4,604,654 Tesco PLC * 514,000 2,364,898 Unilever PLC * 498,000 4,629,236 Vodafone Group PLC * 1,982,000 4,900,091 ------------ 38,546,731 TOTAL COMMON STOCK (Cost: $91,370,721) $112,574,963 ------------
PRINCIPAL AMOUNT VALUE ----------- ---------- SHORT TERM INVESTMENTS - 5.37% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $6,760,432 $6,760,432 ----------
The accompanying notes are an integral part of the financial statements. 292 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL AMOUNT VALUE ------------ ------------ REPURCHASE AGREEMENTS - 5.13% Repurchase Agreement with State Street Corp. dated 12/31/2003 at 0.40%, to be repurchased at $6,449,143 on 01/02/2004, collateralized by $6,560,000 U.S. Treasury Notes, 1.625% due 09/30/2005 (valued at $6,580,644, including interest). $ 6,449,000 $ 6,449,000 ------------ TOTAL INVESTMENTS (INTERNATIONAL EQUITY SELECT TRUST) (Cost: $104,580,153) $125,784,395 ============
The Trust has the following five top industry concentrations at December 31, 2003 (as a percentage of total value of investments): Banking 18.47% Food & Beverages 10.25% Pharmaceuticals 7.50% Liquor 7.29% Petroleum Services 6.61%
HIGH GRADE BOND TRUST
PRINCIPAL AMOUNT VALUE ----------- ------------ U.S. TREASURY OBLIGATIONS - 23.69% U.S. TREASURY BONDS - 17.89% 5.375% due 02/15/2031 (a) $ 2,921,000 $ 3,046,171 6.00% due 02/15/2026 (a) 3,306,000 3,666,172 7.25% due 08/15/2022 (a) 19,990,000 25,228,779 7.50% due 11/15/2016 (a) 10,024,000 12,761,805 ------------ 44,702,927 U.S. TREASURY NOTES - 5.80% 3.00% due 01/31/2004 6,632,000 6,642,359 4.25% due 08/15/2013 - 11/15/2013 (a) 7,854,000 7,859,357 ------------ 14,501,716 TOTAL U.S. TREASURY OBLIGATIONS (Cost: $59,873,519) $ 59,204,643 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 32.54% FEDERAL HOME LOAN BANK - 5.99% 3.25% due 08/15/2005 (a) 14,600,000 14,959,423 ------------ FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.78% 5.50% due 07/15/2006 (a) 4,122,000 4,441,241 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION - 24.77% FRN 4.500% due 07/01/2033 - 11/01/2033 22,345,666 21,393,715 FRN 5.095% due 12/01/2011 1,644,531 1,710,095 FRN 7.000% due 07/15/2005 5,592,000 6,041,144 5.50% TBA ** 31,876,000 32,744,880 ------------ 61,889,834 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost: $81,021,479) $ 81,290,498 ------------ COLLATERALIZED MORTGAGE OBLIGATIONS - 0.44% SSB Auto Loan Trust, Series 2002-1, Class A4, FRN 2.890% due 02/15/2009 1,071,000 1,083,860 ------------ TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost: $1,084,416) $ 1,083,860 ------------ ASSET BACKED SECURITIES - 13.38% Bank One Issuance Trust, Series 2002-A4, Class A4, FRN 2.940% due 06/16/2008 $ 958,000 $ 972,197 Capital Auto Receivables Asset Trust, Series 2002-5, Class A4, FRN 2.920% due 04/15/2008 3,895,000 3,941,156 Carmax Auto Owner Trust, Series 2003-1, Class A4, FRN 2.16% due 11/16/2009 2,354,000 2,319,560 Carmax Auto Owner Trust, Series 2003-2, Class A4, FRN 3.070% due 10/15/2010 2,387,000 2,394,459 Chase Manhattan Auto Owner Trust, Series 2003-A, Class A4, FRN 2.060% due 12/15/2009 2,330,000 2,282,945 Citibank Omni-S Master Trust, Series 2000-2, Class A, FRN 6.75% due 09/16/2009 893,000 960,034 CNH Equipment Trust, Series 2003-A, Class A4B, FRN 2.570% due 09/15/2009 1,039,000 1,019,607 CNH Equipment Trust, Series 2003-B, Class A4B, FRN 3.380% due 02/15/2011 526,000 524,356 John Deere Owner Trust, Series 2003-A, Class A4, FRN 2.440% due 06/15/2010 4,098,000 4,010,278 National City Auto Receivables Trust, Series 2002-A, Class A4, FRN 4.83% due 08/15/2009 2,267,000 2,357,385 Onyx Acceptance Auto Trust, Series 2002-D, Class A4, FRN 3.100% due 07/15/2009 1,162,000 1,178,132 Onyx Acceptance Auto Trust, Series 2003-B, ClassA4, FRN 2.450% due 03/15/2010 2,117,000 2,097,664 Onyx Acceptance Auto Trust, Series 2003-C, Class A4, FRN 2.660% due 05/17/2010 2,692,000 2,677,720 WFS Financial 2002 1 Owner Trust, Series 2002-1, Class A4A, FRN 4.87% due 09/20/2009 2,122,000 2,214,613 WFS Financial Owner Trust, Series 2003-1, Class A4, FRN 2.74% due 09/20/2010 3,192,000 3,188,399 WFS Financial Owner Trust, Series 2003-4, Class A3, FRN 2.390% due 01/22/2008 1,297,000 1,300,242 ------------ TOTAL ASSET BACKED SECURITIES (Cost: $33,597,168) $ 33,438,747 ------------ SHORT TERM INVESTMENTS - 15.99% State Street Navigator Securities Lending Prime Portfolio, 1.06% (b) $ 39,953,319 $ 39,953,319 ------------ REPURCHASE AGREEMENTS - 13.96% *** Repurchase Agreement with State Street Corp., dated 12/31/2003 at 0.40%, to be repurchased at $34,880,775 on 01/02/2004, collateralized by $33,330,000 U.S. Treasury Notes, 7.875% due 11/15/2004 (valued at $35,579,775, including interest). $ 34,880,000 $ 34,880,000 ------------ TOTAL INVESTMENTS (HIGH GRADE BOND TRUST) (Cost: $250,409,901) $249,851,067 ============
The accompanying notes are an integral part of the financial statements. 293 MANUFACTURERS INVESTMENT TRUST PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2003 - CONTINUED (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) AMERICAN GROWTH TRUST
PRINCIPAL AMOUNT VALUE ---------------- ------------ INVESTMENT COMPANIES - 100.00% American Growth Trust - Class 2 * $6,003,737 $273,170,043 TOTAL INVESTMENT COMPANIES (Cost: $249,390,380) $273,170,043 ------------ TOTAL INVESTMENTS (AMERICAN GROWTH TRUST) (Cost: $249,390,380) $273,170,043 ============
AMERICAN INTERNATIONAL TRUST
PRINCIPAL AMOUNT VALUE ---------------- ------------ INVESTMENT COMPANIES - 100.00% American International Trust - Class 2 * $13,482,792 $180,669,413 ------------ TOTAL INVESTMENT COMPANIES (Cost: $153,195,115) $180,669,413 ------------ TOTAL INVESTMENTS (AMERICAN INTERNATIONAL TRUST) (Cost: $153,195,115) $180,669,413 ============
AMERICAN GROWTH-INCOME TRUST
PRINCIPAL AMOUNT VALUE ---------------- ------------ INVESTMENT COMPANIES - 100.00% American Growth-Income Trust - Class 2 $5,480,523 $183,487,911 ------------ TOTAL INVESTMENT COMPANIES (Cost: $168,096,799) $183,487,911 ------------ TOTAL INVESTMENTS (AMERICAN GROWTH-INCOME TRUST) (Cost: $168,096,799) $183,487,911 ============
AMERICAN BLUE CHIP INCOME AND GROWTH TRUST
PRINCIPAL AMOUNT VALUE ---------------- ------------ INVESTMENT COMPANIES - 100.00% American Blue Chip Income & Growth Trust - Class 2 $19,453,393 $182,083,760 ------------ TOTAL INVESTMENT COMPANIES (Cost: $158,356,283) $182,083,760 ------------ TOTAL INVESTMENTS (AMERICAN BLUE CHIP INCOME AND GROWTH TRUST) (Cost: $158,356,283) $182,083,760 ============
Key to Currency Abbreviations AUD - Australian Dollar CAD - Canadian Dollar CZK - Czech Koruna DKK - Danish Krone EUR - European Currency FIM - Finnish Markka FRF - French Franc DEM - German Deustche Mark GBP - British Pound GRD - Greek Drachma HKD - Hong Kong Dollar ITL - Italian Lira IEP - Irish Punt JPY - Japanese Yen MXN - Mexican Peso NLG - Netherlands Guilder NZD - New Zealand Dollar NOK - Norwegian Krone PLZ - Polish Zloty SEK - Swedish Krona SGD - Singapore Dollar ZAR - South African Rand Key to Security Abbreviations and Legend ADR - American Depositary Receipts ADS - American Depositary Shares CDO - Collateralized Debt Obligation ESOP - Employee Stock Ownership Plan EWCO - European Written Call Option FRN - Floating Rate Note (Rate effective as of December 31, 2003). GDR - Global Depositary Receipts GTD - Guaranteed MTN - Medium Term Note IO - Interest Only (Carries notional principal amount) OTC - Over The Counter PCL - Public Company Limited PIK - Paid In Kind PO - Principal Only REIT - Real Estate Investment Trust REMIC - Real Estate Mortgage Investment Conduit SBI - Shares Beneficial Interest SADR - Sponsored American Depository Receipts SPDR - Standard & Poor's Depositary Receipts TBA - To Be Announced +++ - Non-Income producing, issuer is in bankruptcy and is in default of interest payments. * - Non-Income producing ** - Purchased on a forward commitment (Note 2) *** - At December 31, 2003 a portion of this security was pledged to cover forward commitments purchased. **** - At December 31, 2003 a portion of this security was pledged to cover margin requirements for open futures contracts. (a) - At December 31, 2003 all or a portion of this security was out on loan. (b) - Investment in an affiliate of the Trust's custodian bank. (c) - Investment in an affiliate of the Trust's subadviser. The accompanying notes are an integral part of the financial statements. 294 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION OF THE TRUST. The Manufacturers Investment Trust (the "Trust") is a no-load, open-end management investment company organized as a Massachusetts business trust. It is a series company, which means that it has several portfolios, each with a stated investment objective which it pursues through separate investment policies. The Trust currently offers seventy-six separate investment portfolios, seventy-two of which are described here as follows: the Science & Technology Trust ("Science & Technology"), Pacific Rim Emerging Markets Trust ("Pacific Rim Emerging Markets"), the Health Sciences Trust ("Health Sciences"), the Emerging Growth Trust ("Emerging Growth"), the Aggressive Growth Trust ("Aggressive Growth"), the Emerging Small Company Trust ("Emerging Small Company"), the Small Company Blend Trust ("Small Company Blend"), the Dynamic Growth Trust ("Dynamic Growth"), the Mid Cap Stock Trust ("Mid Cap Stock"), the Natural Resources Trust ("Natural Resources"), the All Cap Growth Trust ("All Cap Growth"), the Strategic Opportunities Trust ("Strategic Opportunities"), the Financial Services Trust ("Financial Services"), the International Stock Trust ("International Stock"), the Overseas Trust ("Overseas"), the International Small Cap Trust ("International Small Cap"), the International Value Trust ("International Value"), the Quantitative Mid Cap Trust ("Quantitative Mid Cap"), the Mid Cap Core Trust ("Mid Cap Core"), the Global Equity Trust ("Global Equity"), the Strategic Growth Trust ("Strategic Growth"), the Capital Appreciation Trust ("Capital Appreciation"), the Quantitative All Cap Trust ("Quantitative All Cap"), the All Cap Core Trust ("All Cap Core"), the Large Cap Growth Trust ("Large Cap Growth"), the Quantitative Equity Trust ("Quantitative Equity"), the Blue Chip Growth Trust ("Blue Chip Growth"), the U.S. Large Cap Trust ("U.S. Large Cap", formerly U.S. Large Cap Value"), Strategic Value Trust ("Strategic Value", formerly "Capital Opportunities"), the Large Cap Value Trust ("Large Cap Value"), the Utilities Trust ("Utilities"), the Real Estate Securities Trust ("Real Estate Securities"), the Small Cap Opportunities Trust ("Small Cap Opportunities"), the Small Company Value Trust ("Small Company Value"), the Special Value Trust ("Special Value"), the Mid Cap Value Trust ("Mid Cap Value"), the Value Trust ("Value"), the All Cap Value Trust ("All Cap Value"), the Equity Index Trust ("Equity Index"), the Fundamental Value Trust ("Fundamental Value"), the Growth & Income Trust ("Growth & Income"), the Great Companies-America Trust ("Great Companies-America"), the Equity-Income Trust ("Equity-Income"), the Income & Value Trust ("Income & Value"), the Balanced Trust ("Balanced"), the Global Allocation Trust ("Global Allocation", formerly "Tactical Allocation"), the High Yield Trust ("High Yield"), the Strategic Bond Trust ("Strategic Bond"), the Global Bond Trust ("Global Bond"), the Diversified Bond Trust ("Diversified Bond"), the Investment Quality Bond Trust ("Investment Quality Bond"), the Total Return Trust ("Total Return"), the Real Return Bond Trust ("Real Return Bond"), the U.S. Government Securities Trust ("U.S. Government Securities"), the Money Market Trust ("Money Market"), the Small Cap Index Trust ("Small Cap Index"), the International Index Trust ("International Index"), the Mid Cap Index Trust ("Mid Cap Index"), the Total Stock Market Index Trust ("Total Stock Market Index"), the 500 Index Trust ("500 Index"), the Lifestyle Aggressive 1000 Trust ("Lifestyle Aggressive 1000"), the Lifestyle Growth 820 Trust ("Lifestyle Growth 820"), the Lifestyle Balanced 640 Trust ("Lifestyle Balanced 640"), the Lifestyle Moderate 460 Trust ("Lifestyle Moderate 460"), the Lifestyle Conservative 280 Trust ("Lifestyle Conservative 280"), the Small-Mid Cap Trust ("Small-Mid Cap"), the International Equity Select Trust ("International Equity Select"), the High Grade Bond Trust ("High Grade Bond"), the American Growth Trust ("American Growth"), the American International Trust ("American International"), the American Growth-Income Trust ("American Growth-Income") and the American Blue Chip Income and Growth Trust ("American Blue Chip Income and Growth"). Each of the Portfolios with the exception of Health Sciences, Dynamic Growth, Natural Resources, Utilities, Real Estate Securities, Great Companies-America, Global Bond, Real Return Bond, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460, Lifestyle Conservative 280, American Growth, American International, American Growth-Income and American Blue Chip Income and Growth is diversified for purposes of the Investment Company Act of 1940, as amended. Shares of the Portfolios are presently offered only to: Separate Accounts A, H, I, L, M, N and in the case of certain Portfolios, to unregistered separate accounts issued by The Manufacturers Life Insurance Company (U.S.A.) ("Manulife USA") and to Separate Accounts A and B and in the case of certain Portfolios, to unregistered separate accounts issued by The Manufacturers Life Insurance Company of New York ("Manulife New York") and in the case of Series III shares, to certain qualified pension and retirement plans. Manulife USA and Manulife New York are indirect wholly owned subsidiaries of The Manufacturers Life Insurance Company ("Manulife"), which in turn is a wholly owned subsidiary of Manulife Financial Corporation, a publicly traded company. Manulife Financial Corporation and its subsidiaries are known collectively as "Manulife Financial". Manulife New York is a wholly owned subsidiary of Manulife USA. At December 31, 2003, of the Trust portfolios noted above, Manulife USA owned seed money shares of 249,221, 248,043, 244,537, 160,104, and 3,797,076 in Emerging Growth, Quantitative All Cap, Large Cap Value, Great Companies-America and International Index, respectively. Manufacturers Securities Services, LLC ("MSS"), a Delaware limited liability company controlled by Manulife USA, serves as investment adviser for the Trust (See Note 5) and Manulife Financial Securities, LLC ("MFS") a Delaware limited liability company controlled by Manulife USA, serves as principal underwriter of the variable contracts issued by Manulife USA and Manulife New York (See Note 6). The Trust offers three classes of shares. Series I shares are offered for all portfolios with the exception of Great Companies-America. Effective July 9, 2003 Series I shares were offered for the first time on American Growth, American International, American Growth-Income, and American Blue Chip Income and Growth. Series II shares are offered for all portfolios with the exception of Equity Index, Small-Mid Cap, International Equity Select and High Grade Bond. Effective September 5, 2003, Series III shares were offered for all portfolios with the exception of Aggressive Growth, Small Company Blend, Dynamic Growth, All Cap Growth, Strategic Opportunities, International Stock, Overseas, International Value, Quantitative Mid Cap, Mid Cap Core, Capital Appreciation, All Cap Core, Large Cap Growth, Quantitative Equity, U.S. Large Cap, Strategic Value, Large Cap Value, Small Cap Opportunities, Small Company Value, Value, Equity Index, Great Companies-America, Income & Value, Balanced, Global Allocation, Diversified Bond, Small-Mid Cap, International Equity Select, High Grade Bond, American Growth, and American International, American Growth-Income, and American Blue Chip Income and Growth. In addition, the following portfolios are available under Series III, only as an underlying investment in the Lifestyle Trusts: Aggressive Growth, All Cap Growth, International Stock, Overseas, International Value, Mid Cap Core, Capital Appreciation, Quantitative Equity, US Large Cap, Strategic Value, Small Cap Opportunities, Small Company Value, Diversified Bond, Small-Mid Cap, International Equity Select, and High Grade Bond. Series I, Series II, and Series III shares are the same, except for differences in class expenses and voting rights with respect to its distribution plan (see Note 6). CHANGE IN PORTFOLIO NAME. Effective May 1, 2003, the name of U.S. Large Cap Value was changed to U.S. Large Cap, the name of Tactical Allocation was changed to Global Allocation, and the name of Capital Opportunities was changed to Strategic Value. CHANGE IN SUBADVISERS. Effective May 1, 2003, Miller Anderson & Sherrerd, LLP resigned as subadviser to Value and High Yield, The Dreyfus Corporation resigned as subadviser to All Cap Value, Founders Asset Management resigned as subadviser to International Small Cap and effective December 9, 2003, Putnam Investment Management, LLC resigned as subadviser to Global Equity. The Trustees, including a majority of Trustees who are not interested persons of the Trust, voted to approve Van Kampen Investments as subadviser to Value, Salomon Brothers Asset Management as subadviser to High Yield, Lord, Abbett & Company as subadviser to All Cap Value and Templeton Investment Counsel, Inc. as subadviser to International Small Cap and Global Equity. NEW PORTFOLIOS. Effective May 5, 2003 Emerging Growth, Natural Resources, Mid Cap Core, Quantitative All Cap, Large Cap Value, Small Cap Opportunities, Special Value and Real Return Bond commenced operations. MFC Global Investment Management is the subadviser to Emerging Growth and Quantitative All Cap, Wellington Management Company, LLP is the subadviser to Natural Resources, AIM Capital Management is the subadviser to Mid Cap Core, Fund Asset Management, L.P. (doing business as "Mercury Advisers") is the subadviser to Large Cap Value, Munder Capital Management is the subadviser to Small Cap Opportunities, Salomon Brothers Asset Management, Inc. is the subadviser to Special Value, and Pacific Investment Management Company is the subadviser to Real Return Bond. Also effective May 5, 2003, American Growth, American International, American Growth-Income and American Blue Chip Income and Growth commenced operations. American Growth, American International, American Growth-Income and American Blue Chip Income and Growth each operate as a "feeder fund" which means that the portfolio does not buy investment securities directly. Instead, each invests in a "master fund" which in turn purchases investment securities. 295 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED ORGANIZATION OF THE TRUST, CONTINUED Each portfolio has the same investment objective and limitations as its master fund. Each master fund is a series of American Funds Insurance Series ("American Funds"). Each portfolio's master fund is listed below:
TRUST FEEDER FUND AMERICAN FUND MASTER FUND ----------------- ------------------------- American Growth Trust Growth Fund (Class 2 shares) American International Trust International Fund (Class 2 shares) American Growth-Income Trust Growth-Income Fund (Class 2 shares) American Blue Chip Income and Growth Trust Blue Chip Income and Growth Fund (Class 2 shares)
Effective August 4, 2003 Great Companies-America commenced operations. Great Companies-America, LLC is the subadviser to Great Companies-America. Great Companies-America is offered under Series II only. REORGANIZATION. On May 1, 2003 the shareholders of the Trust voted to approve an Agreement and Plan of Reorganization (the "Agreement") of the Trust on behalf of the Internet Technologies Trust ("Internet Technologies"), the Telecommunications Trust ("Telecommunications"), the Mid Cap Growth Trust ("Mid Cap Growth"), and the Mid Cap Opportunities Trust ("Mid Cap Opportunities") portfolios (collectively, the "Transferor Portfolios") and the Science & Technology Trust (Science & Technology"), and the Dynamic Growth Trust ("Dynamic Growth") portfolios (collectively the "Acquiring Portfolios"). The agreement provided for : (a) the transfer of all assets, subject to all of the liabilities, of the Transferor Portfolios in exchange for a representative amount of the Acquiring Portfolios shares; (b) the liquidation of the Transferor Portfolios; and (c) the distribution to Transferor Portfolio shareholders of such Acquiring Portfolio shares. Based on the opinion of tax counsel, the reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the portfolios or their shareholders. The expenses of the reorganization were borne by the Transferor Portfolios and the Acquiring Portfolios. The effective time of the reorganization occurred immediately after the close of regularly scheduled trading on the New York Stock Exchange on May 2, 2003. As a result of the reorganization, the total value of all shares of each Acquiring Portfolio issued in the reorganization equaled the total value of the net assets of the corresponding Transferor Portfolios (including $782,073, $3,378,920, and $783,351 of unrealized appreciation from Telecommunications, Mid Cap Growth, and Mid Cap Opportunities, respectively and $3,139,619 of unrealized depreciation from Internet Technologies) acquired by such Acquiring Portfolios. The resulting activity was as follows:
SHARES TOTAL NET ASSETS NET ASSET VALUE ------ ---------------- --------------- Internet Technologies Series I at May 2, 2003 10,510,373 $ 30,853,020 $ 2.94 Internet Technologies Series II at May 2, 2003 1,551,227 4,544,006 2.93 Telecommunications Series I at May 2, 2003 2,336,257 10,461,209 4.48 Telecommunications Series II at May 2, 2003 754,783 3,376,782 4.47 Science & Technology Series I at May 2, 2003 46,347,714 402,450,266 8.68 Science & Technology Series II at May 2, 2003 2,350,136 20,394,835 8.68 Science & Technology Series I after 51,107,417 443,764,495 8.68 reorganization on May 2, 2003 Science & Technology Series II after 3,262,669 28,315,623 8.68 reorganization on May 2, 2003 Mid Cap Growth Series I at May 2, 2003 3,841,162 30,416,167 7.92 Mid Cap Growth Series II at May 2, 2003 1,731,994 13,699,952 7.91 Mid Cap Opportunities Series I at May 2, 2003 2,199,418 17,399,010 7.91 Mid Cap Opportunities Series II at May 2, 2003 920,279 7,267,941 7.90 Dynamic Growth Series I at May 2, 2003 19,808,320 68,921,850 3.48 Dynamic Growth Series II at May 2, 2003 1,665,758 5,792,256 3.48 Dynamic Growth Series I after reorganization on May 2, 2003: 33,548,314 116,737,027 3.48 Dynamic Growth Series II after reorganization on May 2, 2003: 7,691,014 26,760,149 3.48
2. SIGNIFICANT ACCOUNTING POLICIES. The policies described below are followed by the Trust in the preparation of the financial statements. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates. SECURITY VALUATION. The net asset value of the shares of each portfolio is determined once daily as of the close of day-time trading of the New York Stock Exchange. Securities held by Money Market and short term instruments with remaining maturities of 60 days or less held by the other Portfolios of the Trust are valued at amortized cost, which approximates market value. All other securities held by the Portfolios are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on a principal securities exchange (domestic or foreign) or, lacking any sales, at the closing bid price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Investments in other mutual funds including underlying Portfolio shares held by the Lifestyle Trusts, American Growth, American International, American Growth-Income, and American Blue Chip Income and Growth are valued at their net asset value. Portfolio securities for which there are no such quotations, principally debt securities, are valued on the basis of the valuation provided by a pricing service, which utilizes both dealer-supplied and electronic data processing techniques. 296 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Other assets and securities for which no such quotations are readily available are valued at their fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange. The values of such securities used in computing the net asset value of a portfolio's shares are generally determined as of such times. Occasionally, events that affect the values of such securities may occur between the times at which they are generally determined and the close of the New York Stock Exchange. In such event, these securities will then be valued at their fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME. Investment security transactions are accounted for on a trade date basis. Interest income is accrued as earned. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-date or as soon after the ex-date that the Portfolio is aware of such dividends, net of all taxes. All original issue discounts are accreted for financial and tax reporting purposes. All discounts/premiums are accreted/amortized for financial reporting purposes. Non-cash dividends are recorded at the fair market value of the securities received. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based upon consistently applied procedures. Inflation indexed securities are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation. Interest is accrued based upon the principal value, which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed security is recorded as interest income, even though the principal is not received until maturity. From time to time, certain of the Portfolios may invest in Real Estate Investment Trusts (REIT's) and as a result, will estimate the components of distributions from these securities. For the year ended December 31, 2003, distributions from REIT's received in excess of income are recorded as a reduction of cost of investments. Prior to January 1, 2003, had the Trust recorded distributions received from REIT's in excess of income as a reduction of the cost of investments, there would have been no impact on the total net assets but would have resulted in a decrease to dividend income of $2,668,881 and an increase to realized gain(loss) and unrealized gain(loss) of $1,847,569 and $821,285, respectively. The statements of changes in net assets and financial highlights for prior periods have not been reclassified to reflect this change in presentation. The Portfolios use the First In, First Out method for determining realized gain or loss on investments for both financial and federal income tax reporting purposes. MULTI-CLASS OPERATIONS. All income, expenses (except class specific expenses) and realized and unrealized gains (losses) are allocated to each class based upon the relative net assets of each class. Dividends from net investment income are determined at a class level and distributions from capital gains are determined at a Portfolio level. FOREIGN CURRENCY TRANSLATIONS. The accounting records of the Trust are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis: (i) market value of securities, other assets and other liabilities at the current rate of exchange at period end of such currencies against U.S. dollars; and (ii) purchases and sales of securities, income and expenses at the rate of exchange quoted on the respective dates of such transactions. Net realized gains and losses on foreign currency transactions represent net gains and losses from sales and maturities of foreign currency contracts, disposition of foreign currencies, the difference between the amount of net investment income accrued and the U.S. dollar amount actually received, and gains and losses between trade and settlement date on purchases and sales of securities. The effects of changes in foreign currency exchange rates on investments in securities are included with the net realized and unrealized gain or loss on investment securities. Certain Portfolios may be subject to capital gains and repatriation taxes imposed by certain countries in which they invest. Such taxes are generally based upon income and/or capital gains earned or repatriated. Taxes are accrued based upon net investment income, net realized gains and net unrealized appreciation as income and/or capital gains. FORWARD FOREIGN CURRENCY CONTRACTS. All portfolios with the exception of Equity Index, U.S. Government Securities, Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460, Lifestyle Conservative 280, American Growth, American International, American Growth-Income and American Blue Chip Income and Growth may purchase and sell forward foreign currency contracts in order to hedge a specific transaction or portfolio position. Forward foreign currency contracts are valued at forward foreign currency exchange rates and marked to market daily. The net U.S. dollar value of foreign currency underlying all contractual commitments held at the end of the period, the resulting net unrealized appreciation (depreciation) and related net receivable or payable amount are determined using forward foreign currency exchange rates supplied by a quotation service. The Portfolios could be exposed to risks in excess of amounts recognized on the Statements of Assets and Liabilities if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the forward foreign currency contract changes unfavorably. Net realized gains (losses) on foreign currency and forward foreign currency contracts shown in the Statements of Operations, include net gains or losses realized by a Portfolio on contracts which have matured. FUTURES. All Portfolios with the exception of Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative 280, American Growth, American International, American Growth-Income and American Blue Chip Income and Growth may purchase and sell financial futures contracts and options on those contracts. The Portfolios invest in contracts based on financial instruments such as U.S. Treasury Bonds or Notes or on securities indices such as the S&P 500 Index, in order to hedge against a decline in the value of securities owned by the Portfolios. Upon entering into futures contracts, the Portfolio is required to deposit with a broker an amount, termed the initial margin, which typically represents a certain percentage of the purchase price indicated in the futures contract. Payments to and from the broker, known as variation margin, are required to be made on a daily basis as the price of the futures contract fluctuates, making the long or short positions in the contract more or less valuable. If the position is closed out by taking an opposite position prior to the settlement date of the futures contract, a final determination of variation margin is made, cash is required to be paid to or released by the broker, and the Portfolio realizes a gain or loss. When a Portfolio sells a futures contract based on a financial instrument, the Portfolio becomes obligated to deliver that kind of instrument at an agreed upon date for a specified price. 297 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED SIGNIFICANT ACCOUNTING POLICIES, CONTINUED The Portfolio realizes a gain or loss depending on whether the price of an offsetting purchase is less or more than the price of the initial sale or on whether the price of an offsetting sale is more or less than the price of the initial purchase. The Portfolio could be exposed to risks if it could not close out futures positions because of an illiquid secondary market or the inability of counterparties to meet the terms of their contracts. Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The following is a summary of open futures contracts at December 31, 2003:
SALE OF FUTURES CONTRACTS PURCHASE OF FUTURE CONTRACTS ------------------------- ---------------------------- NUMBER NUMBER EXPIRATION OF OPEN NOTIONAL UNREALIZED OF OPEN NOTIONAL UNREALIZED DATE CONTRACTS AMOUNT GAIN/(LOSS) CONTRACTS AMOUNT GAIN/(LOSS) ---------- --------- ----------- ----------- --------- ----------- ------------- ALL CAP CORE Russell 2000 Index Mar-2004 50 $13,930,000 $ 59,700 S&P 500 Index Mar-2004 10 $ 2,776,500 67,065 ------------- $ 126,765 ============= EQUITY INDEX S&P 500 Index Mar-2004 11 $ 3,054,150 $ 64,812 ============= STRATEGIC BOND US 20 yr Treasury Bond Future Mar-2004 40 $ 4,372,500 $ 68,822 ============= US 5 yr Treasury Note Future Mar-2004 (225) ($25,115,625) ($ 284,358) US 10 yr Treasury Note Future Mar-2004 (247) ($27,729,609) (360,404) ----------- ($ 644,762) =========== GLOBAL BOND U.S. 10 yr Treasury Mar-2004 297 $33,342,891 $ 296,000 10 yr German Euro - BUND Mar-2004 233 33,208,464 480,121 5 yr German Euro - BOBL Mar-2004 72 10,026,887 74 Japan 10 yr Govt. Bonds Mar-2004 28 36,027,442 79,432 ------------- $ 855,627 ============= US 30 yr Treasury Bond Future Mar-2004 (9) ($ 983,813) ($ 3,188) =========== INVESTMENT QUALITY BOND US 5 yr Treasury Mar-2004 (280) ($31,255,000) ($ 185,700) US 10 yr Treasury Mar-2004 (60) ($ 6,735,938) (6,804) ----------- ($ 192,504) =========== TOTAL RETURN 5 yr German Euro - BOBL Mar-2004 335 $46,652,879 $ 41,135 Eurodollar Mar-2005 131 31,908,325 50,075 Eurodollar Mar-2008 38 8,992,700 (15,200) Eurodollar Jun-2004 9 2,217,825 14,850 Eurodollar Jun-2005 117 28,375,425 33,888 Eurodollar Jun-2008 38 8,982,250 (15,200) Eurodollar Sep-2004 196 48,140,050 326,156 Eurodollar Sep-2005 51 12,322,238 3,188 Eurodollar Sep-2008 38 8,972,275 (14,963) Eurodollar Dec-2004 182 44,517,200 100,338 Eurodollar Dec-2005 64 15,414,400 4,800 Eurodollar Dec-2008 38 8,963,250 (13,538) U.S. 5 yr Treasury Mar-2004 1,101 122,899,125 1,788,761 U.S. 10 yr Treasury Mar-2004 2,766 310,526,719 4,669,409 Euribor Mar-2005 132 40,353,882 123,914 Euribor Jun-2005 24 7,318,170 6,578
298 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
SALE OF FUTURES CONTRACTS PURCHASE OF FUTURE CONTRACTS ------------------------- ---------------------------- NUMBER NUMBER EXPIRATION OF OPEN NOTIONAL UNREALIZED OF OPEN NOTIONAL UNREALIZED DATE CONTRACTS AMOUNT GAIN/(LOSS) CONTRACTS AMOUNT GAIN/(LOSS) ---------- --------- ------------- ----------- --------- ----------- ----------- TOTAL RETURN, CONTINUED Euribor Sep-2005 24 7,301,539 5,216 Euribor Dec-2004 269 82,443,913 318,276 Euribor Dec-2005 24 7,287,175 4,988 ----------- $ 7,432,671 =========== U.S. 30 yr Treasury Mar-2004 (439) ($ 47,988,188) ($ 387,390) ========== REAL RETURN BOND Eurodollar Mar-2004 (4) ($ 987,750) $ 1,100) ========== U.S. GOVERNMENT SECURITIES U.S. 10 yr Treasury Mar-2004 (51) ($ 5,725,547) ($ 74,415) ========== SMALL CAP INDEX Russell 2000 Index Mar-2004 69 $19,223,400 $ 652,167 =========== INTERNATIONAL INDEX British Pound Mar-2004 14 $ 1,552,163 $ 27,916 Australian Dollar Mar-2004 5 372,750 5,770 Share Price Index Mar-2004 6 373,275 5,131 Euro Currency Mar-2004 17 2,663,475 59,161 Hang Seng Index Jan-2004 1 81,378 539 Topix Index Mar-2004 12 1,170,486 53,913 Japanese Yen Mar-2004 10 1,164,750 4,278 MSCI Pan Euro Mar-2004 210 4,222,850 37,932 ----------- $ 194,640 =========== MID CAP INDEX S&P Midcap 400 Index Mar-2004 18 $ 5,184,450 $ 68,192 =========== TOTAL STOCK MARKET INDEX S&P Midcap 400 Index Mar-2004 2 $ 576,050 $ 5,786 Russell 2000 Index Mar-2004 4 1,114,400 27,522 S&P 500 Index Mar-2004 28 7,774,200 206,154 ----------- $ 239,462 =========== 500 INDEX S&P 500 Index Mar-2004 75 $20,823,750 $ 517,075 ===========
PURCHASED AND WRITTEN OPTIONS. All Portfolios with the exception of Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460, Lifestyle Conservative 280, American Growth, American International, American Growth-Income and American Blue Chip Income and Growth may purchase and sell put and call options on securities, (whether or not it holds the securities in its portfolio) securities indices, currencies and futures contracts. When a Portfolio writes a put or call option, an amount equal to the premium received by the Portfolio is recorded as a liability and is subsequently "marked-to-market" to reflect the current market value of the option written. If an option expires or if the Portfolio enters into an offsetting purchase option, the Portfolio realizes a gain (or loss if the cost of an offsetting purchase option exceeds the premium received when the option was written). If a written call option is exercised, the Portfolio realizes a gain or loss from the sale of the underlying security with the proceeds of the sale increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security the Portfolio purchases upon exercise of the option. 299 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED SIGNIFICANT ACCOUNTING POLICIES, CONTINUED When a Portfolio purchases a put or call option, the premium paid by the Portfolio is included in the Portfolio of Investments and subsequently "marked-to-market" to reflect the current market value of the option. If the purchased option expires, the Portfolio realizes a loss in the amount of the cost of the option. If a Portfolio enters into a closing sale transaction, the Portfolio realizes a gain or loss, depending on whether proceeds from the closing sale transaction are greater or less than the original cost of the option. If a Portfolio exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If a Portfolio exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium originally paid. The Portfolios may use options to manage exposure to fluctuations in currency values. Writing puts and buying calls may increase the Portfolio's exposure to the underlying instrument. Buying puts and writing calls may decrease the Portfolio's exposure to the underlying instrument. Losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts or if the counterparties do not perform under the terms of the contract. INTEREST RATE SWAPS. All Portfolios with the exception of Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460, Lifestyle Conservative 280, American Growth, American International, American Growth-Income and American Blue Chip Income and Growth may enter into interest rate swaps. Interest rate swaps involve the exchange of commitments to pay or receive interest of one instrument for that of another instrument (for example, an exchange of floating rate payments for fixed rate payments with respect to a notional principal amount). Net periodic interest payments to be received or paid are accrued daily and are recorded as interest income. Interest rate swaps are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or paid at the end of the agreement are recorded as realized gains or losses. A Portfolio could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. FORWARD COMMITMENTS. All Portfolios with the exception of Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460, Lifestyle Conservative 280, American Growth, American International, American Growth-Income and American Blue Chip Income and Growth may purchase or sell debt securities on a when issued or forward delivery basis, which means that the obligations will be delivered to the Portfolios of the Trust at a future date, which may be a month or more after the date of commitment. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The Portfolio may receive compensation for interest forgone in the purchase of forward delivery securities. With respect to purchase commitments, each Portfolio identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors. The value of the securities underlying a forward commitment to purchase securities, and the subsequent fluctuations in their value, are taken into account when determining the Portfolio's net asset value starting on the day the Portfolio agrees to purchase the securities. The market values of the securities purchased on a forward delivery basis are identified in the portfolio of investments. SECURITIES LENDING. All Portfolios with the exception of Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460, Lifestyle Conservative 280, American Growth, American International, American Growth-Income and American Blue Chip Income and Growth may lend securities in amounts up to 33 1/3% of their total non-cash assets to brokers, dealers and other financial institutions, provided such loans are callable at any time and are at all times fully secured by cash, cash equivalents or securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, marked to market to the value of the loaned securities on a daily basis. The Portfolios may bear the risk of delay in recovery of, or even of rights in, the securities loaned should the borrower of the securities fail financially. Consequently, loans of Portfolio securities will only be made to firms deemed by the subadvisers to be creditworthy. The Portfolios receive compensation for lending their securities either in the form of fees or by retaining a portion of interest on the investment of any cash received as collateral. Cash collateral is invested in the State Street Navigator Securities Lending Prime Portfolio. All collateral received will be in an amount equal to at least 100% of the market value of the loaned securities and is intended to be maintained at that level during the period of the loan. The market value of the loaned securities is determined at the close of business of the Portfolio and any additional required collateral is delivered to the Portfolio the next business day. During the loan period, the Portfolio continues to retain rights of ownership, including dividends and interest of the loaned securities. At December 31, 2003, the values of securities loaned and of cash collateral were as follows:
MARKET VALUE OF VALUE OF CASH SECURITIES LOANED COLLATERAL ----------------- --------------- Science & Technology $ 31,806,166 $ 32,649,759 Pacific Rim Emerging Markets 17,931,267 18,941,969 Emerging Growth 2,283,513 2,345,485 Aggressive Growth 54,032,953 55,361,435(1) Emerging Small Company 63,709,985 65,321,333(2) Small Company Blend 47,565,046 48,917,188(3) Dynamic Growth 21,333,311 21,844,442 Mid Cap Stock 52,774,717 54,062,633 Natural Resources 14,960,183 15,306,937 All Cap Growth 30,462,631 31,142,453 Strategic Opportunities 73,812,128 75,581,538 Financial Services 1,251,049 1,280,490 International Stock 87,983,460 92,492,304 Overseas 48,723,721 51,225,587(4) International Small Cap 25,552,353 26,976,661 International Value 44,130,352 46,428,194 Quantitative Mid Cap 8,195,262 8,414,534 Mid Cap Core 1,916,983 1,962,261 Utilities 1,062,673 1,089,830 Real Estate Securities 8,997,570 9,194,175 Small Cap Opportunities 9,312,855 9,545,847 Small Company Value 52,465,890 53,925,328 Special Value 4,137,021 4,248,886 Mid Cap Value 35,467,894 36,322,557 All Cap Value 13,551,652 13,885,067 Equity Index 517,537 533,071 Fundamental Value 15,288,431 15,667,588 Growth & Income 31,921,690 32,650,450 Great Companies America 290,731 297,150 Equity-Income 49,650,250 50,949,353 Income and Value 97,989,138 100,105,153 Global Allocation 285,619 292,050 High Yield 116,353,338 118,768,354 Strategic Bond 36,481,235 37,464,550 Global Bond 35,768,004 36,584,365 Diversified Bond 88,554,425 90,346,566
300 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
MARKET VALUE OF VALUE OF CASH SECURITIES LOANED COLLATERAL ----------------- --------------- Global Equity $ 6,449,879 $ 6,788,101 Strategic Growth 11,334,525 11,640,290 Capital Appreciation 6,917,821 7,070,818 Quantitative All Cap 1,082,260 1,108,592 All Cap Core 7,694,749 7,899,277 Large Cap Growth 19,510,316 20,069,219 Quantitative Equity 14,342,499 14,673,806 Blue Chip Growth 98,061,165 100,351,928 U.S Large Cap 64,631,229 66,142,244 Strategic Value 3,805,919 3,948,925 Large Cap Value 3,054,638 3,133,921 Investment Quality Bond 69,389,805 70,793,540 Total Return 327,695,455 334,433,933 Real Return Bond 18,591,282 18,972,000 Small Cap Index 28,752,474 29,602,122(5) International Index 9,227,722 9,732,443(6) Mid Cap Index 14,747,247 15,125,107 Total Stock Market Index 5,296,027 5,450,409(7) 500 Index 16,325,678 16,796,934 Small-Mid Cap 9,376,565 9,626,360 International Equity Select 6,436,107 6,760,432 High Grade Bond 39,158,811 39,953,319
(1) Comprised of $55,327,831 and $33,604 of cash collateral and securities collateral, respectively. (2) Comprised of $64,954,221 and $367,112 of cash collateral and securities collateral, respectively. (3) Comprised of $48,906,716 and $10,472 of cash collateral and securities collateral, respectively. (4) Comprised of $51,204,315 and $21,272 of cash collateral and securities collateral, respectively. (5) Comprised of $29,592,018 and $10,104 of cash collateral and securities collateral, respectively. (6) Comprised of $9,718,352 and $14,091 of cash collateral and securities collateral, respectively. (7) Comprised of $5,449,043 and $1,366 of cash collateral and securities collateral, respectively. MORTGAGE DOLLAR ROLLS. All Portfolios, with the exception of Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460, Lifestyle Conservative 280, American Growth, American International, American Growth-Income and American Blue Chip Income and Growth may enter into mortgage dollar rolls in which they sell mortgage securities for delivery currently and simultaneously contract to repurchase similar, but not identical, securities at the same price or a lower price on an agreed upon date. The Portfolios receive compensation as consideration for entering into the commitment to repurchase. The compensation is the difference between the current sale price and the lower forward price for the future purchase (often referred to as the "drop") as well as by the interest earned on the cash proceeds of the initial sale. A Portfolio may also be compensated by the receipt of a commitment fee. The compensation is recorded as deferred income and amortized to income over the roll period. As the holder, the counterparty receives all principal and interest payments, including prepayments, made with respect to the similar security. Mortgage dollar rolls may be renewed with a new sale and repurchase price with a cash settlement made at renewal without physical delivery of the securities subject to the contract. FEDERAL INCOME TAXES. The Portfolios' policy is to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and to distribute substantially all of its taxable income to its shareholders. Accordingly, no federal income tax provision is required. Each Portfolio of the Trust is treated as a separate taxpayer for federal income tax purposes. DISTRIBUTION OF INCOME AND GAINS. Substantially all of the net investment income of Money Market is declared as a dividend to shareholders of record as of the close of business each day and is reinvested daily. During any particular year, net realized gains from investment transactions of each Portfolio, in excess of available capital loss carry-forwards of each Portfolio would be taxable to such Portfolio if not distributed. Therefore, each Portfolio of the Trust intends to distribute substantially all of its investment company taxable income and any net realized capital gains in order to avoid federal income tax. The Portfolios' distributions are based on income amounts determined in accordance with federal income tax regulations. The character of distributions made during the year from net investment income and net realized gains may differ for tax purposes due to various differences in recording net investment income and realized gains for financial statement and tax purposes. EXPENSE ALLOCATION. Expenses not directly attributable to a particular Portfolio or class of shares are allocated based on the relative share of net assets of each Portfolio at the time the expense was incurred. Class specific expenses, such as Transfer Agent and Blue Sky fees, are accrued daily and charged directly to the respective share class. REPURCHASE AGREEMENTS. Each Portfolio of the Trust may enter into repurchase agreements. When a Portfolio enters into a repurchase agreement through its custodian, it receives delivery of securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is generally at least 102% of the repurchase amount. Each Portfolio will take constructive receipt of all securities underlying the repurchase agreements it has entered into until such agreements expire. If the seller defaults, a Portfolio would suffer a loss to the extent that proceeds from the sale of underlying securities were less than the repurchase amount. Each Portfolio of the Trust may enter into repurchase agreements maturing within seven days with domestic dealers, banks or other financial institutions deemed to be creditworthy by the Adviser. Collateral for certain tri-party repurchase agreements is held at the custodian bank in a segregated account for the benefit of the Portfolio and the counterparty. CAPITAL ACCOUNTS. The Portfolios report the undistributed net investment income and accumulated undistributed net realized gain (loss) accounts on a basis approximating amounts available for future tax distributions (or to offset future taxable realized gains when a capital loss carry-forward is available). Accordingly, each Portfolio of the Trust may periodically make reclassifications among certain capital accounts without impacting its net asset value. 301 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED 3. WRITTEN OPTIONS AND INTEREST RATE SWAPS. The following is a summary of open written options outstanding at December 31, 2003:
HEALTH SCIENCES AGGRESSIVE GROWTH ALL CAP GROWTH ------------------------- ---------------------- ------------------------ NUMBER OF PREMIUMS NUMBER OF PREMIUMS NUMBER OF PREMIUMS CONTRACTS RECEIVED CONTRACTS RECEIVED CONTRACTS RECEIVED --------- ------------ --------- ---------- ---------- ---------- Options outstanding 12/31/2002 2,906 $ 509,885 - - - - Options written 30,514 7,464,586 597 $ 76,669 197 $ 66,113 Options closed & expired (25,679) (5,637,173) (329) (47,097) (197) (66,113) ------ ----------- --- --------- --- --------- Options outstanding at 12/31/2003 7,741 $ 2,337,298 268 $ 29,572 - - ====== =========== === ========= === =========
CAPITAL APPRECIATION GLOBAL BOND TOTAL RETURN NUMBER OF PREMIUMS NUMBER OF PREMIUMS NUMBER OF PREMIUMS CONTRACTS RECEIVED CONTRACTS RECEIVED CONTRACTS RECEIVED --------- -------- ----------- ----------- ------------- ------------ Options outstanding 12/31/2002 - - 33,675,204 $ 1,001,725 182,001,495 $ 4,194,771 Options written 92 $ 920 54,800,610 1,635,309 54,207,207 5,111,752 Options closed & expired (92) (920) (42,205,675) (1,455,309) (133,706,842) (5,649,978) -- ------- ---------- ----------- ----------- ----------- Options outstanding at 12/31/2003 - - 46,270,139 $ 1,181,725 102,501,860 $ 3,656,545 == ======= ========== =========== =========== ===========
REAL RETURN ----------- NUMBER OF PREMIUMS CONTRACTS RECEIVED ------------ --------- Options outstanding 12/31/2002 - - Options written 60,400,000 $ 526,152 Options closed & expired - - ---------- --------- Options outstanding at 12/31/2003 60,400,000 $ 526,152 ========== =========
Written options outstanding at December 31, 2003:
NUMBER OF PORTFOLIO DESCRIPTION TYPE CONTRACTS EXPIRATION DATE VALUE - --------- ----------- ---- --------- --------------- ----- HEALTH SCIENCES Merck & Co (Strike price of $55.00) Put 15 Jan-04 $( 6,900) Merck & Co (Strike price of $60.00) Put 41 Jan-04 (40,180) Merck & Co (Strike price of $65.00) Put 32 Jan-04 (60,160) Genentech, Inc. (Strike price of $95.00) Put 43 Jan-04 (13,330) MGI Pharma, Inc. (Strike price of $45.00) Put 44 Jan-04 (22,000) Cephalon, Inc. (Strike price of $45.00) Put 35 Jan-04 (875) Trimeris, Inc. (Strike price of $30.00) Call 7 Jan-04 (70) Molecular Devices (Strike price of $22.50) Put 72 Jan-04 (23,040) Imclone System, Inc. (Strike price of $50.00) Call 110 Jan-04 (2,200) Gilead Sciences, Inc. (Strike price of $60.00) Call 28 Jan-04 (2,380) Amgen, Inc. (Strike price of $65.00) Call 73 Jan-04 (1,095) Imclone System, Inc. (Strike price of $40.00) Put 38 Jan-04 (7,220) Imclone System, Inc. (Strike price of $45.00) Put 38 Jan-04 (22,040) Genentech, Inc. (Strike price of $95.00) Call 77 Jan-04 (13,860) Amerisourcebergen Corp. (Strike price of $60.00) Call 112 Feb-04 (12,006) Protein Design Labs (Strike price of $12.50) Put 70 Feb-04 (700) Imclone System, Inc. (Strike price of $40.00) Put 51 Feb-04 (20,910) Imclone System, Inc. (Strike price of $45.00) Put 73 Feb-04 (54,020) Gilead Sciences, Inc. (Strike price of $60.00) Call 364 Feb-04 (78,260) Gilead Sciences, Inc. (Strike price of $50.00) Put 15 Feb-04 (825) Neurocrine Biosciences (Strike price of $55.00) Call 72 Feb-04 (14,040) Gilead Sciences, Inc. (Strike price of $55.00) Put 75 Feb-04 (11,625)
302 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED WRITTEN OPTIONS AND INTEREST RATE SWAPS, CONTINUED
NUMBER OF PORTFOLIO DESCRIPTION TYPE CONTRACTS EXPIRATION DATE VALUE - --------- ----------- ---- --------- --------------- -------- HEALTH SCIENCES, CONTINUED Triad Hospitals, Inc. (Strike price of $35.00) Call 75 Feb-04 ($ 5,250) Anthem, Inc. (Strike price of $75.00) Put 59 Mar-04 (16,225) Pfizer, Inc. (Strike price of $32.50) Put 74 Mar-04 (2,960) Medimmune, Inc. (Strike price of $30.00) Call 95 Mar-04 (4,275) Cardinal Health, Inc. (Strike price of $65.00) Call 157 Mar-04 (18,840) Omnicare, Inc. (Strike price of $40.00) Call 74 Mar-04 (14,800) Medimmune, Inc. (Strike price of $27.50) Call 74 Mar-04 (7,400) Angiotech Pharmaceuticals (Strike price of $50.00) Put 52 Mar-04 (29,120) Martek Biosciences Corp. (Strike price of $65.00) Call 37 Mar-04 (17,760) Lilly Eli & Co (Strike price of $75.00) Call 73 Apr-04 (13,285) Chiron Corp. (Strike price of $50.00) Put 68 Apr-04 (7,140) Intermune, Inc. (Strike price of $20.00) Put 34 Apr-04 (3,740) Lilli Eli & Co (Strike price of $60.00) Put 34 Apr-04 (3,400) Intermune, Inc. (Strike price of $25.00) Put 34 Apr-04 (10,540) C.R. Bard, Inc. (Strike price of $70.00) Put 34 Apr-04 (1,700) C.R. Bard, Inc. (Strike price of $75.00) Put 34 Apr-04 (4,420) Adolor Corp.(Strike price of $17.50) Put 68 Apr-04 (5,440) Trimeris, Inc. (Strike price of $30.00) Call 400 Apr-04 (12,000) Guidant Corp. (Strike price of $55.00) Put 54 Apr-04 (7,020) Lilli Eli & Co (Strike price of $70.00) Call 71 Apr-04 (27,690) St. Jude Medical, Inc. (Strike price of $60.00) Put 36 Apr-04 (10,800) Amgen, Inc. (Strike price of $65.00) Put 60 Apr-04 (30,000) CV Therapeutics, Inc. (Strike price of $20.00) Call 75 Apr-04 (3,375) Allergan, Inc. (Strike price of $85.00) Call 39 Apr-04 (2,730) Wyeth (Strike price of $45.00) Call 149 Apr-04 (16,390) Vertex Pharmaceuticals, Inc. (Strike price of $10.00) Call 80 Apr-04 (9,200) Amylin Pharmaceuticals, Inc. (Strike price of $30.00) Call 217 Apr-04 (5,425) Universal Health (Strike price of $50.00) Call 73 Apr-04 (35,770) St. Jude Medical, Inc. (Strike price of $60.00) Call 36 Apr-04 (15,480) Biogen Idec, Inc. (Strike price of $40.00) Call 194 Apr-04 (25,220) Amgen, Inc. (Strike price of $65.00) Call 149 Apr-04 (26,820) Wyeth (Strike price of $40.00) Put 74 Apr-04 (10,360) Wyeth (Strike price of $35.00) Put 37 Apr-04 (1,295) ICOS Corp. (Strike price of $50.00) Put 104 Apr-04 (98,800) Imclone System, Inc. (Strike price of $45.00) Put 36 May-04 (33,120) Alcon, Inc. (Strike price of $60.00) Call 88 May-04 (32,560) Laboratory Corp. of America (Strike price of $35.00) Put 19 May-04 (2,565) Neurocrine Biosciences (Strike price of $60.00) Call 108 May-04 (21,060) Quest Diagnostics (Strike price of $80.00) Put 37 May-04 (30,340) HCA, Inc. (Strike price of $45.00) Put 73 May-04 (24,090) Barr Labs, Inc. (Strike price of $70.00) Put 45 May-04 (11,250) HCA, Inc. (Strike price of $45.00) Call 147 May-04 (20,580) Boston Scientific (Strike price of $37.50) Call 228 May-04 (52,440) Millenium Pharmaceuticals (Strike price of $20.00) Call 169 May-04 (26,195) Wilson Great Batch (Strike price of $45.00) Put 35 May-04 (14,700) Invitrogen Corp. (Strike price of $70.00) Put 45 May-04 (28,350) Forest Labs, Inc. (Strike price of $70.00) Call 74 May-04 (11,100) Gilead Sciences, Inc. (Strike price of $70.00) Call 113 May-04 (14,690) Cardinal Health, Inc. (Strike price of $65.00) Call 32 Jun-04 (7,570) Pfizer, Inc. (Strike price of $37.50) Put 113 Jun-04 (36,949)
303 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED WRITTEN OPTIONS AND INTEREST RATE SWAPS, CONTINUED
NUMBER OF PORTFOLIO DESCRIPTION TYPE CONTRACTS EXPIRATION DATE VALUE - --------- ----------- ---------- ---------- --------------- ------------- HEALTH SCIENCES, CONTINUED Pfizer, Inc. (Strike price of $32.50) Put 146 Jun-04 ($ 11,680) Medimmune, Inc. (Strike price of $32.50) Call 109 Jun-04 (5,994) Medimmune, Inc. (Strike price of $30.00) Call 269 Jun-04 (26,900) Caremark Rx, Inc. (Strike price of $25.00) Put 37 Jun-04 (7,770) Martek Biosciences Corp. (Strike price of $60.00) Put 75 Jun-04 (32,250) Pfizer, Inc. (Strike price of $37.50) Call 223 Jun-04 (17,840) Medimmune, Inc. (Strike price of $27.50) Call 108 Jun-04 (18,900) Ivax Corp. (Strike price of $25.00) Put 74 Jun-04 (21,830) Johnson & Johnson (Strike price of $55.00) Call 316 Jul-04 (39,500) Amylin Pharmaceuticals, Inc. (Strike price of $30.00) Call 73 Jul-04 (5,840) Universal Health (Strike price of $55.00) Put 40 Jul-04 (18,000) CV Therapeutics, Inc. (Strike price of $17.50) Call 150 Jul-04 (26,250) Bard C.R., Inc. (Strike price of $85.00) Put 39 Jul-04 (25,350) Universal Health Services (Strike price of $50.00) Call 38 Jul-04 (23,560) MGI Pharma, Inc. (Strike price of $45.00) Put 22 Jul-04 (16,500) Invitrogen Corp. (Strike price of $70.00) Put 60 Aug-04 (46,800) Anthem, Inc. (Strike price of $80.00) Put 38 Jan-05 (18,620) Merck & Co (Strike price of $50.00) Put 153 Jan-05 (70,380) ------------ ($ 1,713,930) ============ AGGRESSIVE GROWTH TRUST Pixar (Strike price $75.00) Call 18 Jan-04 ($ 450) Sandisk Corp. (Strike price $75.00) Call 55 Jan-04 (825) Nvidia Corp (Strike price $22.50) Call 85 Jan-04 (11,050) Sandisk Corp. (Strike price $65.00) Call 10 Jan-04 (1,250) Red Hat, Inc. (Strike price $20.00) Call 100 Jan-04 (4,500) ------------ ($ 18,075) ============ GLOBAL BOND U.S. Treasury Bonds 30 Yr Futures (Strike price of $111.00) Call 14 Feb-04 ($ 31,719) U.S. Treasury Notes 10 Yr Futures (Strike price of $115.00) Call 125 Feb-04 (50,578) Swap Option 3 Month LIBOR (Strike price of $4.00) Call 1,600,000 Mar-04 (2) Swap Option 3 Month LIBOR (Strike price of $6.00) Put 5,100,000 Mar-04 (1,530) Swap Option 3 Month LIBOR (Strike price of $4.25) Call 3,700,000 Jun-04 (31,850) Swap Option 3 Month LIBOR (Strike price of $6.00) Put 7,100,000 Oct-04 (55,038) Swap Option 3 Month LIBOR (Strike price of $3.80) Call 7,100,000 Oct-04 (57,212) Swap Option 3 Month LIBOR (Strike price of $5.75) Put 700,000 Aug-05 (42,824) Swap Option 3 Month LIBOR (Strike price of $5.75) Call 700,000 Aug-05 (42,824) Swap Option 3 Month LIBOR (Strike price of $5.75) Call 6,900,000 Aug-05 (344,972) Swap Option 3 Month LIBOR (Strike price of $5.75) Put 6,900,000 Aug-05 (344,972) Swap Option 3 Month LIBOR (Strike price of $6.00) Put 2,500,000 Sep-05 (62,853) Swap Option 3 Month LIBOR (Strike price of $4.00) Call 2,500,000 Sep-05 (28,473) Swap Option 3 Month LIBOR (Strike price of $4.375) Call 1,000,000 Dec-06 (15,000) OTC % U.S. Dollar Forward Delta/Neutral Straddle vs. Japanese Yen Strike and premium determined on 12/18/2007, based upon implied volatility parameter of 18.500%. Counterparty: AIG International Inc. Call & Put 470,000 Dec-12 18,671 ------------ ($ 1,091,176) ============ TOTAL RETURN U. S. Treasury Notes 10 Yr Futures (Strike price of $108.00) Call 189 Feb-04 ($ 218,531) U. S. Treasury Notes 10 Yr Futures (Strike price of $113.00) Put 115 Feb-04 (35,938) Swap Option 3 Month LIBOR (Strike price of $4.00) Call 19,000,000 Mar-04 (19,741)
304 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED WRITTEN OPTIONS AND INTEREST RATE SWAPS, CONTINUED
NUMBER OF PORTFOLIO DESCRIPTION TYPE CONTRACTS EXPIRATION DATE VALUE - --------- ----------- ---- --------- --------------- ----- TOTAL RETURN, CONTINUED Swap Option 3 Month LIBOR (Strike price of $3.25) Call 3,000,000 Mar-04 ($5,535) Swap Option 3 Month LIBOR (Strike price of $4.00) Call 7,800,000 Mar-04 (8,728) Swap Option 3 Month LIBOR (Strike price of $4.00) Call 7,900,000 Mar-04 (8,840) Eurodollar (Strike price of $97.25) Put 11 Mar-04 (69) Eurodollar (Strike price of $98.50) Call 22 Mar-04 (15,813) Eurodollar (Strike price of $97.75) Put 71 Mar-04 (887) EURIBOR Futures (Strike price $95.00) Put 800 Mar-04 (76) EURIBOR Futures (Strike price $97.50) Put 76 Mar-04 390 Eurodollar (Strike price of $98.00) Put 365 Jun-04 (41,063) Swap Option 3 Month LIBOR (Strike price of $5.97) Call 13,200,000 Oct-04 (1,124,231) Swap Option 3 Month LIBOR (Strike price of $5.97) Put 13,200,000 Oct-04 (102,920) Swap Option 3 Month LIBOR (Strike price of $6.00) Put 3,400,000 Oct-04 (28,128) Swap Option 3 Month LIBOR (Strike price of $6.00) Call 3,400,000 Oct-04 (291,414) EURIBOR Futures (Strike price $97.00) Put 60 Dec-04 2,021 EURIBOR Futures (Strike price $94.25 Put 151 Dec-04 - Swap Option 3 Month LIBOR (Strike price of $6.70) Put 11,600,000 Jun-05 (140,650) Swap Option 3 Month LIBOR (Strike price of $6.00) Call 20,000,000 Jun-05 (1,471,260) ----------- ($3,511,413) ========== REAL RETURN BOND Swap Option 3 Month LIBOR (Strike price of $6.50) Put 6,800,000 Oct-04 ($ 30,172) Swap Option 3 Month LIBOR (Strike price of $4.00) Call 6,800,000 Oct-04 (78,098) Swap Option 3 Month LIBOR (Strike price of $6.00) Put 8,300,000 Oct-04 (64,342) Swap Option 3 Month LIBOR (Strike price of $3.80) Call 8,300,000 Oct-04 (66,881) Swap Option 3 Month LIBOR (Strike price of $4.00) Call 15,100,000 Nov-04 (102,770) Swap Option 3 Month LIBOR (Strike price of $7.00) Put 15,100,000 Nov-04 (70,970) ----------- ($ 413,233) ===========
The following is a summary of open interest rate swap contracts outstanding in Global Bond, Total Return and Real Return Bond as of December 31, 2003:
UNREALIZED EFFECTIVE TERMINATION APPRECIATION NOTIONAL AMOUNT COUNTER PARTY DATE DATE PAYMENT RECEIPT FREQUENCY (DEPRECIATION) --------------- ------------- ---- ---- ------- ------- ------------- -------------- GLOBAL BOND 3,100,000 USD Bank of America 6/16/2004 6/16/2014 Fixed 5.00% 3 Month LIBOR semi-annually ($25,932) 700,000 USD Bank of America 6/16/2004 6/16/2024 Fixed 5.00% 3 Month LIBOR semi-annually 39,944 12,300,000 EUR Citibank 6/17/2002 6/18/2012 Fixed 5.00% 6 Month EURIBOR annually (832,752) 43,000,000 HKD Goldman Sachs 2/8/2001 2/8/2006 Fixed 5.753% 3 Month HIBOR quarterly (455,370) 58,600,000 HKD Goldman Sachs 12/17/2003 12/17/2008 Fixed 4.235% 3 Month HIBOR quarterly (235,185) 310,000,000 JPY Goldman Sachs 3/21/2002 9/21/2011 Fixed 1.30% 6 Month LIBOR semi-annually (30,831) 200,000 EUR Goldman Sachs 6/17/2002 6/17/2012 Fixed 5.00% 6 Month EURIBOR Annually (13,541) 500,000 GBP Goldman Sachs 3/15/2011 3/15/2016 Fixed 5.50% 6 Month LIBOR semi-annually (11,253) 4,800,000 EUR Goldman Sachs 3/20/2013 3/20/2018 6 Month EURIBOR Fixed 6.00% annually 58,530 3,600,000 GBP Goldman Sachs 3/20/2013 3/20/2018 Fixed 5.00% 6 Month LIBOR semi-annually 2,423 7,400,000 CHF JP Morgan 3/29/2004 3/29/2005 3 Month LIBOR BBA+ Fixed 1.50% annually 34,832 12,200,000 EUR JP Morgan 3/15/2012 3/15/2017 6 Month EURIBOR Fixed 6.00% annually 189,422 9,100,000 EUR JP Morgan 3/20/2013 3/20/2018 6 Month EURIBOR Fixed 6.00% annually 110,964 500,000 USD Merrill Lynch 12/31/2003 3/31/2004 1 Month - 65 BP LIBOR Lehman CMBS++ monthly - 3,800,000 EUR Merrill Lynch 3/15/2005 3/15/2007 6 Month EURIBOR Fixed 4.00% annually 22,158 8,000,000 GBP Merrill Lynch 3/20/2013 3/20/2018 Fixed 5.00% 6 Month LIBOR semi-annually 4,741 12,400,000 USD Merrill Lynch 6/16/2004 6/16/2024 Fixed 5.00% 3 Month LIBOR semi-annually 707,581
305 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED WRITTEN OPTIONS AND INTEREST RATE SWAPS, CONTINUED
UNREALIZED EFFECTIVE TERMINATION APPRECIATION NOTIONAL AMOUNT COUNTER PARTY DATE DATE PAYMENT RECEIPT FREQUENCY (DEPRECIATION) --------------- ------------- --------- ----------- ------- ------- ------------- ------------ GLOBAL BOND, CONTINUED 800,000 GBP Morgan Stanley 6/17/2006 6/17/2013 Fixed 5.00% 6 Month LIBOR semi-annually $ 10,775 1,100,000 EUR Morgan Stanley 6/16/2004 6/16/2014 Fixed 5.00% 6 Month EURIBOR annually (48,864) 1,700,000 USD Morgan Stanley 6/16/2004 6/16/2014 Fixed 5.00% 3 Month LIBOR semi-annually (14,221) 9,070,000 GBP Morgan Stanley 3/15/2011 3/15/2016 Fixed 5.50% 6 Month LIBOR semi-annually (204,129) 4,100,000 GBP Morgan Stanley 3/15/2012 3/15/2017 Fixed 5.00% 6 Month LIBOR semi-annually 12,281 6,500,000 EUR Morgan Stanley 3/15/2012 3/15/2017 6 Month EURIBOR Fixed 6.00% annually 100,266 400,000 GBP Morgan Stanley 3/20/2013 3/20/2018 Fixed 5.00% 6 Month LIBOR semi-annually 237 2,000,000 EUR Morgan Stanley 9/17/2001 3/15/2031 Fixed 6.00% 6 Month EURIBOR semi-annually (378,272) 3,900,000 EUR Morgan Stanley 6/17/2002 12/15/2031 Fixed 5.50% 6 Month LIBOR annually (368,015) 9,800,000 USD UBS Warburg 6/18/2003 6/18/2010 Fixed 5.00% 3 Month LIBOR semi-annually (538,304) 330,000,000 JPY UBS Warburg 3/22/2004 3/20/2012 Fixed 0.80% 6 Month LIBOR semi-annually 106,308 320,000,000 JPY UBS Warburg 6/18/2003 6/18/2013 Fixed 0.695% 6 Month LIBOR semi-annually 176,098 19,700,000 USD UBS Warburg 6/16/2004 6/16/2014 Fixed 5.00% 3 Month LIBOR semi-annually (164,791) 2,100,000 EUR UBS Warburg 3/15/2012 3/15/2017 6 Month EURIBOR Fixed 6.00% annually 32,394 1,400,000 GBP UBS Warburg 6/15/2012 6/15/2017 Fixed 5.00% 6 Month LIBOR semi-annually 3,731 700,000 EUR UBS Warburg 3/20/2013 3/20/2018 6 Month EURIBOR Fixed 6.00% annually 8,536 900,000 USD UBS Warburg 6/16/2004 6/16/2024 Fixed 5.00% 3 Month LIBOR semi-annually 51,357 ------------ ($1,648,882) ============ TOTAL RETURN 54,900,000 USD Bank of America 6/16/2004 6/16/2009 3 Month LIBOR Fixed 4.00% semi-annually ($133,407) 1,300,000 USD Bear Stearns 12/10/2003 7/1/2004 1 Month - 65 BP LIBOR Lehman CMBS++ monthly 11,515 38,400,000 USD Goldman Sachs 6/16/2004 6/16/2009 3 Month LIBOR Fixed 4.00% semi-annually (93,312) 3,200,000 GBP Goldman Sachs 3/15/2012 3/15/2017 Fixed 5.00% 6 Month LIBOR semi-annually 8,528 7,100,000 EUR Goldman Sachs 3/15/2012 3/15/2017 6 Month EURIBOR Fixed 6.00% annually 109,522 36,100,000 EUR JP Morgan 12/21/2005 12/21/2007 6 Month EURIBOR Fixed 4.00% annually (89,376) 1,000,000 EUR JP Morgan 3/15/2012 3/15/2017 6 Month EURIBOR Fixed 6.00% annually 15,426 600,000 GBP JP Morgan 3/15/2012 3/15/2017 Fixed 5.00% 6 Month LIBOR semi-annually 1,599 3,300,000 EUR JP Morgan 3/15/2017 3/15/2032 6 Month EURIBOR Fixed 6.00% annually 60,975 1,800,000 GBP JP Morgan 3/15/2017 3/15/2032 Fixed 5.00% 6 Month LIBOR semi-annually (57,206) 34,400,000 EUR Merrill Lynch 3/15/2005 3/15/2007 6 Month EURIBOR Fixed 4.00% annually 200,587 150,000,000 JPY Morgan Stanley 6/2/2005 6/2/2012 Fixed 1.07% 6 Month LIBOR semi-annually 37,516 1,200,000 GBP UBS Warburg 3/15/2012 3/15/2017 Fixed 5.00% 6 Month LIBOR semi-annually 3,198 2,700,000 EUR UBS Warburg 3/15/2017 3/15/2032 6 Month EURIBOR Fixed 6.00% annually 49,888 1,700,000 GBP UBS Warburg 3/15/2017 3/15/2032 Fixed 5.00% 6 Month LIBOR semi-annually (54,119) ------------ $ 71,334 ============ REAL RETURN BOND 3,300,000 USD Morgan Stanley 6/16/2004 6/16/2014 3 Month LIBOR Fixed 5.0% semi-annually $ 28,974 ============
+ British Banker Association ++ Commercial Mortgage-Backed Securities 4. PURCHASES AND SALES OF SECURITIES. The following summarizes the securities transactions (except for short-term investments) for the Portfolios (with the exception of Money Market) for the year ended December 31, 2003:
PURCHASES SALES --------------------------------- ------------------------------ PORTFOLIO U.S. GOVERNMENT OTHER ISSUES U.S GOVERNMENT OTHER ISSUES - --------- --------------- ------------ -------------- ------------ Science & Technology -- $268,545,387 -- $261,727,504 Pacific Rim Emerging Markets -- 47,492,644 -- 34,565,359 Health Sciences -- 92,626,233 -- 49,383,611 Emerging Growth * -- 18,031,544 -- 10,225,561
306 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED PURCHASES AND SALES OF SECURITIES, CONTINUED
PURCHASES SALES --------------------------------- --------------------------------- PORTFOLIO U.S. GOVERNMENT OTHER ISSUES U.S GOVERNMENT OTHER ISSUES - --------- --------------- --------------- --------------- --------------- Aggressive Growth -- $ 173,443,272 -- $ 177,091,495 Emerging Small Company -- 189,698,312 -- 176,825,843 Small Company Blend -- 83,004,711 -- 55,605,099 Dynamic Growth -- 166,513,220 -- 163,690,317 Mid Cap Stock -- 393,059,587 -- 332,850,511 Natural Resources * -- 141,019,126 -- 26,435,824 All Cap Growth -- 293,998,902 -- 303,696,067 Strategic Opportunities -- 919,946,595 -- 986,343,858 Financial Services -- 33,804,557 -- 15,050,160 International Stock -- 475,088,718 -- 476,783,825 Overseas -- 368,595,422 -- 349,239,675 International Small Cap -- 353,260,495 -- 249,544,220 International Value -- 164,206,023 -- 149,816,705 Quantitative Mid Cap -- 103,560,826 -- 96,817,710 Mid Cap Core * -- 40,890,126 -- 6,322,787 Global Equity -- 525,468,283 -- 617,563,080 Strategic Growth -- 194,746,047 -- 146,665,540 Capital Appreciation -- 134,006,042 -- 102,091,953 Quantitative All Cap * -- 7,265,674 -- 3,440,693 All Cap Core -- 423,741,360 -- 459,282,261 Large Cap Growth -- 264,416,066 -- 267,958,630 Quantitative Equity -- 307,807,945 -- 338,596,366 Blue Chip Growth -- 449,701,578 -- 434,465,409 U.S. Large Cap (formerly, U.S. Large Cap Value) -- 156,016,073 -- 191,047,953 Strategic Value (formerly, Capital Opportunities) -- 129,807,187 -- 52,848,363 Large Cap Value * -- 20,113,169 -- 8,222,842 Utilities $ 2,185,212 63,197,051 $ 3,015,495 46,601,521 Real Estate Securities -- 262,285,659 -- 135,265,177 Small Cap Opportunities * -- 60,397,449 -- 7,310,167 Small Company Value -- 102,929,938 -- 55,795,402 Special Value * -- 15,127,562 -- 2,753,680 Mid Cap Value -- 150,674,890 -- 119,553,458 Value -- 464,918,331 -- 501,368,139 All Cap Value -- 263,341,846 -- 76,704,242 Equity Index -- 1,220,013 -- 11,142,025 Fundamental Value -- 151,036,828 -- 46,005,895 Growth & Income -- 589,276,899 -- 716,097,884 Great Companies-America ** -- 2,523,973 -- 121,744 Equity-Income -- 356,855,368 -- 178,955,876 Income and Value 320,424,206 159,101,819 293,381,913 175,097,780 Balanced 42,937,831 121,948,468 48,895,385 119,857,117 Global Allocation (formerly, Tactical Allocation) 27,788,196 69,694,847 18,344,403 77,225,430 High Yield -- 867,202,717 1,773,059 446,822,933 Strategic Bond 168,902,968 225,529,878 55,693,797 348,137,908 Global Bond 333,157,980 573,257,671 378,060,609 598,060,540 Diversified Bond 571,270,999 114,818,782 587,704,910 99,498,324 Investment Quality Bond -- 292,235,723 42,315,272 282,839,550 Total Return 2,597,362,936 963,152,692 2,553,404,096 1,345,461,182 Real Return Bond * 2,018,845,209 34,435,686 1,738,724,583 455,509 U.S. Government Securities 760,910,987 -- 707,240,432 107,632,348 Small Cap Index -- 93,526,872 -- 33,052,724 International Index -- 20,966,002 -- 8,093,540 Mid Cap Index -- 58,474,480 -- 10,144,841
307 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED PURCHASES AND SALES OF SECURITIES, CONTINUED
PURCHASES SALES -------------------------------- ------------------------------- PORTFOLIO U.S. GOVERNMENT OTHER ISSUES U.S GOVERNMENT OTHER ISSUES - ------------ --------------- -------------- -------------- ------------ Total Stock Market Index -- $ 71,314,220 -- $ 5,472,529 500 Index -- 170,704,611 -- 6,084,055 Lifestyle Aggressive 1000 -- 335,223,754 -- 165,814,608 Lifestyle Growth 820 -- 1,339,815,800 -- 688,646,559 Lifestyle Balanced 640 -- 1,549,003,888 -- 803,640,312 Lifestyle Moderate 460 -- 523,801,404 -- 256,953,579 Lifestyle Conservative 280 -- 293,723,673 -- 154,282,211 Small-Mid Cap -- 73,759,985 -- 19,026,369 International Equity Select -- 41,949,806 -- 6,459,058 High Grade Bond $ 848,601,319 48,793,845 $ 776,895,882 33,371,703 American Growth * -- 250,881,566 -- 1,807,921 American International * -- 175,200,589 -- 26,274,087 American Growth-Income * -- 169,817,844 -- 2,099,092 American Blue Chip Income and Growth * -- 158,580,053 -- 248,516
*For the period May 5, 2003 (commencement of operations) to December 31, 2003. **For the period August 4, 2003 (commencement of operations) to December 31, 2003. At December 31, 2003, tax basis net unrealized appreciation (depreciation) was equal to the aggregate gross unrealized appreciation for all securities in which there was an excess of market value over tax cost and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over market value as follows:
TAX BASIS NET UNREALIZED TAX BASIS TAX BASIS APPRECIATION UNREALIZED UNREALIZED PORTFOLIO TAX BASIS COST (DEPRECIATION) APPRECIATION DEPRECIATION --------- -------------- -------------- -------------- -------------- Science and Technology $ 612,897,259 $ 39,905,814 $ 116,756,279 $ 76,850,465 Pacific Rim Emerging Markets 98,328,593 6,935,944 15,001,823 8,065,879 Health Sciences 138,272,590 18,438,986 27,218,367 8,779,381 Emerging Growth 11,223,177 640,409 821,991 181,582 Aggressive Growth 300,129,916 57,015,529 63,434,761 6,419,232 Emerging Small Company 470,874,563 77,425,087 98,240,749 20,815,662 Small Company Blend 235,449,286 22,677,953 36,392,486 13,714,533 Dynamic Growth 174,844,283 29,028,099 32,121,066 3,092,967 Mid Cap Stock 364,480,893 66,326,189 68,923,383 2,597,194 Natural Resources 143,280,468 39,255,276 39,299,944 44,668 All Cap Growth 538,754,765 97,590,298 107,897,730 10,307,432 Strategic Opportunities 560,467,623 72,663,925 83,846,109 11,182,184 Financial Services 77,210,767 12,731,243 14,676,934 1,945,691 International Stock 388,060,888 69,508,278 71,559,591 2,051,313 Overseas 447,181,808 67,076,302 86,736,333 19,660,031 International Small Cap 259,776,842 85,107,877 87,763,589 2,655,712 International Value 387,683,902 67,007,009 76,357,868 9,350,859 Quantitative Mid Cap 105,864,851 25,153,784 26,215,577 1,061,793 Mid Cap Core 47,201,966 5,959,809 6,078,875 119,066 Global Equity 402,116,379 19,026,020 24,889,532 5,863,512 Strategic Growth 247,266,939 25,222,897 31,506,614 6,283,717 Capital Appreciation 173,466,809 28,040,636 30,864,688 2,824,052 Quantitative All Cap 5,408,304 492,413 509,260 16,847 All Cap Core 255,782,475 26,694,793 35,741,907 9,047,114 Large Cap Growth 474,892,836 45,403,233 71,723,709 26,320,476 Quantitative Equity 269,142,937 20,715,497 29,108,094 8,392,597 Blue Chip Growth 1,456,290,079 138,241,644 234,194,779 95,953,135 U.S. Large Cap (formerly, U.S. Large Cap Value) 533,773,117 90,976,656 105,047,028 14,070,372 Strategic Value (formerly, Capital Opportunities) 130,565,230 16,305,278 17,731,731 1,426,453 Large Cap Value 16,608,551 1,275,448 1,315,295 39,847
308 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED PURCHASES AND SALES OF SECURITIES, CONTINUED
TAX BASIS NET UNREALIZED TAX BASIS TAX BASIS APPRECIATION UNREALIZED UNREALIZED PORTFOLIO TAX BASIS COST (DEPRECIATION) APPRECIATION DEPRECIATION --------- -------------- -------------- -------------- -------------- Utilities $ 49,864,184 $ 5,544,025 $ 6,614,103 $ 1,070,078 Real Estate Securities 494,002,269 125,776,462 125,776,603 141 Small Cap Opportunities 64,853,474 13,523,952 13,688,349 164,397 Small Company Value 499,842,484 88,770,102 101,306,756 12,536,654 Special Value 19,561,797 2,430,967 2,493,034 62,067 Mid Cap Value 424,996,903 68,035,646 77,553,563 9,517,917 Value 248,666,755 51,771,400 52,732,081 960,681 All Cap Value 259,823,419 43,263,634 44,259,504 995,870 Equity Index 90,309,998 (8,385,531) 10,095,639 18,481,170 Fundamental Value 484,517,764 88,457,112 92,336,897 3,879,785 Growth & Income 1,492,784,843 207,122,695 282,924,007 75,801,312 Great Companies-America 2,832,917 268,774 289,720 20,946 Equity-Income 1,527,907,081 111,004,928 212,765,237 101,760,309 Income and Value 648,092,224 79,904,328 92,971,247 13,066,919 Balanced 146,920,606 9,038,439 11,278,388 2,239,949 Global Allocation (formerly, Tactical Allocation) 74,463,543 8,402,210 10,387,046 1,984,836 High Yield 989,644,830 31,363,895 62,176,069 30,812,174 Strategic Bond 790,891,454 21,481,342 31,392,133 9,910,791 Global Bond 308,226,628 20,211,459 21,043,932 832,473 Diversified Bond 473,237,850 10,189,021 11,204,597 1,015,576 Investment Quality Bond 520,390,342 28,377,196 31,477,274 3,100,078 Total Return 1,841,081,801 18,936,110 23,348,390 4,412,280 Real Return Bond 581,070,088 2,441,124 3,571,483 1,130,359 U.S. Government Securities 1,255,186,110 8,322,355 8,839,287 516,932 Small Cap Index 181,812,176 23,144,794 27,840,960 4,696,166 International Index 110,233,934 (1,351,977) 11,179,527 12,531,504 Mid Cap Index 182,832,212 20,252,768 29,631,140 9,378,372 Total Stock Market Index 168,101,335 1,466,600 17,999,991 16,533,391 500 Index 1,192,879,728 (76,034,616) 115,543,260 191,577,876 Lifestyle Aggressive 1000 418,262,864 67,447,996 87,421,569 19,973,573 Lifestyle Growth 820 1,637,859,671 237,867,509 293,676,072 55,808,563 Lifestyle Balanced 640 1,842,338,085 228,675,269 264,295,072 35,619,803 Lifestyle Moderate 460 685,659,203 61,770,260 70,475,416 8,705,156 Lifestyle Conservative 280 427,197,846 25,855,190 28,483,497 2,628,307 Small-Mid Cap 146,338,836 22,112,853 23,735,039 1,622,186 International Equity Select 104,624,019 21,160,376 21,314,603 154,227 High Grade Bond 250,865,103 (1,014,036) 476,038 1,490,074 American Growth 249,390,380 23,779,663 23,779,663 - American International 153,195,115 27,474,298 27,474,298 - American Growth-Income 168,096,799 15,391,112 15,391,112 - American Blue Chip Income and Growth 158,356,283 23,727,477 23,727,477 -
5. INVESTMENT ADVISORY AGREEMENTS. The Trust has entered into an Investment Advisory Agreement with MSS (the "Adviser"). The Adviser is responsible for managing the corporate and business affairs of the Trust and for selecting and compensating subadvisers to handle the investment and reinvestment of the assets of each Portfolio of the Trust, subject to the supervision of the Trust's Board of Trustees. As compensation for its services, the Adviser receives an advisory fee from the Trust based on the average daily net assets of each Portfolio. Advisory fees charged to each Portfolio were as follows:
BETWEEN BETWEEN BETWEEN $50 MILLION AND $200 MILLION AND $500 MILLION AND EXCESS OVER PORTFOLIO FIRST $50 MILLION $200 MILLION $500 MILLION $1 BILLION $1 BILLION --------- ----------------- --------------- ---------------- ---------------- ----------- Science & Technology 0.950% 0.950% 0.950% 0.900% 0.900% Pacific Rim Emerging Markets 0.700% 0.700% 0.700% 0.600% 0.600% Health Sciences 0.950% 0.950% 0.950% 0.900% 0.900%
309 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED INVESTMENT ADVISORY AGREEMENTS, CONTINUED
BETWEEN BETWEEN BETWEEN $50 MILLION AND $200 MILLION AND $500 MILLION AND EXCESS OVER PORTFOLIO FIRST $50 MILLION $200 MILLION $500 MILLION $1 BILLION $1 BILLION --------- ----------------- --------------- ---------------- ---------------- ----------- Emerging Growth 0.700% 0.700% 0.700% 0.700% 0.700% Aggressive Growth 0.850% 0.850% 0.850% 0.800% 0.800% Emerging Small Company 0.900% 0.900% 0.900% 0.870% 0.850% Small Company Blend 0.900% 0.900% 0.900% 0.900% 0.900% Dynamic Growth 0.850% 0.850% 0.850% 0.800% 0.800% Mid Cap Stock 0.775% 0.775% 0.750% 0.725% 0.725% Natural Resources 0.950% 0.900% 0.900% 0.900% 0.900% All Cap Growth 0.800% 0.800% 0.800% 0.750% 0.750% Strategic Opportunities 0.700% 0.700% 0.700% 0.700% 0.700% International Stock 0.850% 0.850% 0.850% 0.800% 0.800% Overseas 0.800% 0.800% 0.800% 0.800% 0.800% International Small Cap 0.950% 0.950% 0.850% 0.750% 0.750% International Value 0.850% 0.850% 0.750% 0.700% 0.700% Quantitative Mid Cap 0.650% 0.650% 0.550% 0.550% 0.550% Global Equity 0.750% 0.750% 0.750% 0.750% 0.700% Quantitative All Cap 0.650% 0.600% 0.600% 0.600% 0.600% All Cap Core 0.700% 0.700% 0.700% 0.650% 0.650% Quantitative Equity 0.600% 0.600% 0.600% 0.550% 0.500% Blue Chip Growth 0.725% 0.725% 0.725% 0.725% 0.700% U.S. Large Cap 0.725% 0.725% 0.725% 0.725% 0.700% Special Value 0.900% 0.900% 0.900% 0.850% 0.850% Real Estate Securities 0.600% 0.600% 0.600% 0.600% 0.600% Small Cap Opportunities 0.900% 0.900% 0.900% 0.850% 0.850% Emerging Growth 0.700% 0.700% 0.700% 0.700% 0.700% Small Company Value 0.900% 0.900% 0.900% 0.900% 0.900% Quantitative All Cap 0.650% 0.600% 0.600% 0.600% 0.600% Mid Cap Value 0.800% 0.800% 0.750% 0.725% 0.725% Value 0.650% 0.650% 0.625% 0.550% 0.550% Equity Index 0.250% 0.250% 0.250% 0.250% 0.250% Growth & Income 0.600% 0.600% 0.600% 0.550% 0.500% Great Companies-America 0.750% 0.750% 0.750% 0.700% 0.700% Equity-Income 0.725% 0.725% 0.725% 0.725% 0.700% Income & Value 0.650% 0.650% 0.650% 0.650% 0.650% Balanced 0.600% 0.550% 0.500% 0.500% 0.500% Global Allocation 0.750% 0.750% 0.750% 0.700% 0.700% High Yield 0.625% 0.625% 0.625% 0.550% 0.550% Strategic Bond 0.625% 0.625% 0.625% 0.550% 0.550% Global Bond 0.600% 0.600% 0.600% 0.600% 0.600% Diversified Bond 0.600% 0.600% 0.600% 0.600% 0.600% Investment Quality Bond 0.500% 0.500% 0.500% 0.450% 0.450% Total Return 0.600% 0.600% 0.600% 0.600% 0.600% Real Return Bond 0.600% 0.600% 0.600% 0.600% 0.600% U.S. Government Securities 0.550% 0.550% 0.550% 0.450% 0.450% Money Market 0.350% 0.350% 0.350% 0.350% 0.350% Small Cap Index 0.375% 0.375% 0.375% 0.375% 0.375% International Index 0.400% 0.400% 0.400% 0.400% 0.400% Mid Cap Index 0.375% 0.375% 0.375% 0.375% 0.375% Total Stock Market 0.375% 0.375% 0.375% 0.375% 0.375% 500 Index 0.375% 0.375% 0.375% 0.375% 0.375% Small-Mid Cap 0.950% 0.950% 0.950% 0.950% 0.950% Financial Services 0.800% 0.750% 0.750% 0.700% 0.700% Fundamental Value 0.800% 0.750% 0.750% 0.700% 0.700% International Equity Select 0.900% 0.900% 0.850% 0.800% 0.800%
310 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED INVESTMENT ADVISORY AGREEMENTS, CONTINUED
BETWEEN BETWEEN BETWEEN $300 MILLION AND $600 MILLION AND $900 MILLION AND EXCESS OVER PORTFOLIO FIRST $300 MILLION $600 MILLION $900 MILLION $1.5 BILLION $1.5 BILLION - -------------------- ------------------ ---------------- ---------------- ---------------- ------------ Strategic Growth 0.750% 0.725% 0.700% 0.675% 0.600% Capital Appreciation 0.750% 0.700% 0.700% 0.700% 0.700% Strategic Value 0.750% 0.725% 0.700% 0.675% 0.600% Utilities 0.750% 0.725% 0.700% 0.675% 0.600%
BETWEEN BETWEEN BETWEEN $10 MILLION AND $50 MILLION AND $200 MILLION AND EXCESS OVER PORTFOLIO FIRST $10 MILLION $50 MILLION $200 MILLION $500 MILLION $500 MILLION - -------------------- ----------------- --------------- --------------- ---------------- ------------ Mid Cap Core 0.850% 0.800% 0.775% 0.750% 0.725%
BETWEEN BETWEEN $100 MILLION AND $300 MILLION AND EXCESS OVER PORTFOLIO FIRST $100 MILLION $300 MILLION $500 MILLION $500 MILLION - -------------------------- ------------------ ---------------- ---------------- ------------ Large Cap Value 0.750% 0.750% 0.725% 0.700% Lifestyle Aggressive 1000 0.075% 0.050% 0.050% 0.050% Lifestyle Growth 820 0.075% 0.050% 0.050% 0.050% Lifestyle Balanced 640 0.075% 0.050% 0.050% 0.050% Lifestyle Moderate 460 0.075% 0.050% 0.050% 0.050% Lifestyle Conservative 280 0.075% 0.050% 0.050% 0.050%
BETWEEN BETWEEN $50 MILLION AND $100 MILLION AND EXCESS OVER PORTFOLIO FIRST $50 MILLION $100 MILLION $250 MILLION $250 MILLION - --------------- ----------------- --------------- ---------------- ------------ High Grade Bond 0.600% 0.550% 0.500% 0.450%
BETWEEN $250 MILLION AND EXCESS OVER PORTFOLIO FIRST $250 MILLION $500 MILLION $500 MILLION - --------------- ------------------ ---------------- ------------ All Cap Value 0.750% 0.700% 0.650%
EXCESS OVER PORTFOLIO FIRST $750 MILLION $750 MILLION - ---------------- ------------------ ------------ Large Cap Growth 0.750% 0.700%
In the case of the American Growth, American International, American Growth-Income and American Blue Chip Income and Growth, no advisory fees are charged. In the case of the Lifestyle Trusts and American Growth, American International, American Growth-Income and American Blue Chip Income and Growth, because the underlying portfolios have varied expense levels and the Lifestyle Trusts and American Growth, American International, American Growth-Income and American Blue Chip Income and Growth Trusts may own different proportions of the underlying portfolios at different times, the amount of fees and expenses incurred indirectly by the Portfolios will vary. EXPENSE REIMBURSEMENT. Pursuant to the Advisory Agreement, the Adviser reimburses the Trust for expenses (excluding advisory fees, Rule 12b-1 fees, taxes, portfolio brokerage commissions, interest, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Trust's business) incurred in excess, on an annualized basis, of 0.050% of the average annual net assets of International Index and 500 Index, 0.075% of the average daily net assets of Small Cap Index, Mid Cap Index and Total Stock Market Index, 0.10% of the average daily net assets of Small-Mid Cap and High Grade Bond, 0.15% of the average daily net assets of Equity Index and International Equity Select, 0.50% of the average daily net assets of Science & Technology, Health Sciences, Emerging Growth, Aggressive Growth, Emerging Small Company, Small Company Blend, Dynamic Growth, Mid Cap Stock, Natural Resources, All Cap Growth, Strategic Opportunities, Financial Services, Quantitative Mid Cap, Mid Cap Core, Strategic Growth, Capital Appreciation, Quantitative All Cap, All Cap Core, Large Cap Growth, Quantitative Equity, Blue Chip Growth, U.S. Large Cap, Strategic Value, Large Cap Value, Utilities, Real Estate Securities, Small Cap Opportunities, Small Company Value, Special Value, Mid Cap Value, Value, All Cap Value, Fundamental Value, Growth & Income, Great Companies-America, Equity Income, Income & Value, Balanced, Global Allocation, High Yield, Strategic Bond, Diversified Bond, Investment Quality Bond, Total Return, Real Return Bond, U.S. Government Securities, Money Market, and 0.75% of the average daily net assets of Pacific Rim Emerging Markets, International Stock, Overseas, International Small Cap, International Value, Global Equity and Global Bond. In the case of the Lifestyle Trusts if total expenses of a Lifestyle Trust (absent reimbursement) exceed 0.075%, the Adviser will reduce the advisory fee or reimburse expenses of that Lifestyle Trust by an amount such that the total expenses of the Lifestyle Trust, equal 0.075%. If the total expenses of a Lifestyle Trust (absent reimbursement) are equal to or less than 0.075%, then no expenses will be reimbursed by the Adviser. (For purposes of the expense reimbursement, total expenses of a Lifestyle Trust include the advisory fee but exclude the expenses of the Underlying Portfolios, taxes, portfolio brokerage, interest, litigation, Rule 12b-1 fees and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Trust's business). In the case of the Series III shares, the Adviser voluntarily agreed to reimburse 100% of the class specific Blue Sky and Transfer Agent fees. In addition, the Adviser voluntarily agreed to waive a portion of its advisory fee for Science & Technology, Health Sciences, International Value, Global Equity, Blue Chip Growth, and Equity-Income. Advisory fees waived for the year ended December 31, 2003, were $125,874, $29,353, $24,948, $11,883, $320,655, and $323,191 for Science & Technology, Health Sciences, International Value, Global Equity, Blue Chip Growth, and Equity-Income, respectively. 311 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED INVESTMENT ADVISORY AGREEMENTS, CONTINUED These voluntary expense reimbursements may be terminated by the Adviser at any time upon notice to the Trust. FUND ADMINISTRATION FEES. The Advisory Agreement requires the Trust to reimburse the Adviser for all expenses associated with providing the administrative, financial, accounting and recordkeeping services of the Trust including, the preparation of all tax returns, annual, semi-annual and periodic reports to shareholders and the preparation of all regulatory reports. Total expense incurred for the year ended December 31, 2003 was $3,152,757, of which $248,220 remains payable to the Adviser at December 31, 2003. 6. DISTRIBUTION PLANS. In accordance with Rule 12b-1 of the Investment Company Act of 1940, the Board of Trustees have approved Distribution Plans (the "Plans") for Series I, Series II and Series III. Series I shares of each portfolio (except Equity Index, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative 280) are subject to a Rule 12b-1 fee of up to 0.15% of Series I shares' average daily net assets. American Growth, American International, American Growth-Income, and American Blue Chip Income and Growth are subject to a 12b-1 fee of up to 0.35% of Series I shares' average daily net assets. Series II shares of each portfolio (except Equity Index, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460, Lifestyle Conservative 280, American Growth, American International, American Growth-Income, and American Blue Chip Income and Growth are subject to a Rule 12b-1 fee of up to 0.35% of Series II shares' average daily net assets. Series II shares of American Growth, American International, American Growth-Income, American Blue Chip Income and Growth are subject to a Rule 12b-1 fee of up to 0.50% of Series II shares' average daily net assets. Series III shares of each portfolio (except Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative 280) are subject to rule 12b-1 fee of up to .50% basis points of Series III shares' average daily net assets. Series III shares of Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative 280 are subject to Rule 12b-1 fee of up to .15% of Series III shares' average daily net assets. Rule 12b-1 fees are paid to the Trust's Distributor, MFS, for distribution services pursuant to the Plans. The distributor may use Rule 12b-1 fees for any expenses relating to the distribution of the shares of the class, for any expenses relating to shareholder or administrative services for holders of the shares of the class (or owners of contracts funded in insurance company separate accounts that invest in the shares of the class) and for the payment of service fees. 7. TRUSTEES' FEES. The Trust pays each Trustee who is not an employee of the Adviser or its affiliates a fee of $7,500 plus travel expenses for each Board of Trustees meeting attended. The Trust also pays each Trustee who is not an employee of the Adviser or its affiliates an annual retainer of $97,000. Total expense incurred for the year ended December 31, 2003 was $451,094 of which $100,393 remains payable at December 31, 2003. 8. COMMITMENTS. At December 31, 2003, Natural Resources, Strategic Opportunities, Overseas, International Small Cap, International Value, Global Equity, Large Cap Growth, Utilities, Global Allocation, Strategic Bond, Global Bond, Total Return, Real Return Bond and International Equity Select had entered into forward foreign currency contracts which contractually obligate the Portfolio to deliver currencies at future dates. Open purchases and sales contracts at December 31, 2003 were as follows:
NET UNREALIZED CONTRACTS TO SETTLEMENT APPRECIATION/ DELIVER IN EXCHANGE FOR DATE VALUE (DEPRECIATION) ------------ --------------- ---------- ----------- --------------- NATURAL RESOURCES TRUST PURCHASES Canadian Dollar $ 382,908 501,105 1/2/2004 $ 387,747 $ 4,839 British Pound 28,027 15,809 1/2/2004 28,220 193 South African Rand 141,976 955,213 1/6/2004 142,780 804 ------------ ----------- --------------- $ 552,911 $ 558,747 $ 5,836 =============== STRATEGIC OPPORTUNITIES SALES Pound Sterling 167,590 $ 297,146 1/2/2004 $ 299,157 ($ 2,011) --------------- ----------- =============== OVERSEAS PURCHASES Euro $ 1,295 1,037 1/2/2004 $ 1,307 $ 12 Pound Sterling 115,814 65,319 1/2/2004 116,598 784 Hong Kong Dollar 22,833 177,255 1/2/2004 22,831 (2) Swiss Franc 15,054 18,802 1/5/2004 15,196 142 Pound Sterling 257,788 144,894 1/5/2004 258,643 855 Hong Kong Dollar 53,656 416,506 1/5/2004 53,648 (8) Swiss Franc 173,125 215,276 1/6/2004 173,988 863 Pound Sterling 46,327 25,956 1/6/2004 46,332 5 Japanese Yen 5,700,206 609,716,850 1/7/2004 5,691,108 (9,098) ------------ ----------- --------------- $ 6,386,098 $ 6,379,651 ($ 6,447) --------------- SALES Euro 164,077 $ 206,212 1/5/2004 $ 206,729 ($ 517) Pound Sterling 386,437 687,530 1/5/2004 689,811 (2,281) Swiss Franc 888,758 715,298 1/6/2004 718,304 (3,006)
312 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED COMMITMENTS, CONTINUED
NET UNREALIZED CONTRACTS TO SETTLEMENT APPRECIATION/ DELIVER IN EXCHANGE FOR DATE VALUE (DEPRECIATION) ------------- --------------- ---------- ----------- -------------- OVERSEAS, CONTINUED Euro 644,561 $ 810,058 1/6/2004 $ 812,114 $ (2,056) Pound Sterling 238,600 425,870 1/6/2004 425,913 (43) -------------- ----------- ------------- $ 2,844,968 $ 2,852,871 $ (7,903) ------------- $ (14,350) ============= INTERNATIONAL SMALL CAP PURCHASES Canadian Dollar $ 16,705 21,720 1/2/2004 $ 16,807 $ 102 Canadian Dollar 16,842 21,697 1/5/2004 16,789 (53) ------------- ----------- ------------- $ 33,547 $ 33,596 $ 49 ============= INTERNATIONAL VALUE PURCHASES Danish Krone $ 62,559 373,791 1/2/2004 $ 63,245 $ 686 Euro 12,006 9,605 1/2/2004 12,101 95 Danish Krone 21,617 128,622 1/5/2004 21,763 146 Euro 8,456 6,735 1/5/2004 8,486 30 Danish Krone 21,728 128,737 1/6/2004 21,782 54 ------------- ----------- ------------- $ 126,366 $ 127,377 $ 1,011 ------------- SALES Mexican Peso 233,465 $ 20,762 1/2/2004 $ 20,777 $ (15) -------------- ----------- ------------- $ 996 ============= GLOBAL EQUITY PURCHASES Euro $ 7,701,794 6,134,444 1/5/2004 $ 7,729,095 $ 27,301 British Pound 470,550 264,354 1/5/2004 471,885 1,335 Hong Kong Dollar 1,848,416 14,349,257 1/5/2004 1,848,238 (178) Euro 2,218,020 1,761,562 1/6/2004 2,219,481 1,461 British Pound 117,575 65,648 1/6/2004 117,185 (390) Singapore Dollar 1,759,200 2,987,650 1/6/2004 1,759,200 - Euro 331,417 263,972 1/7/2004 332,591 1,174 Australian Dollar 2,527,600 3,560,000 3/17/2004 2,655,913 128,313 ------------- ----------- ------------- $ 16,974,572 $17,133,588 $ 159,016 SALES Australian Dollar 3,560,000 $ 2,520,462 3/17/2004 $ 2,655,913 $ (135,451) -------------- ----------- ------------- $ 23,565 ============= LARGE CAP GROWTH PURCHASES Euro $ 426,147 343,889 1/2/2004 $ 433,283 $ 7,136 ------------- ----------- ============= UTILITIES PURCHASES Euro $ 34,499 27,501 1/5/2004 $ 34,651 $ 152 Pound Sterling 16,268 9,149 1/5/2004 16,331 63 Euro 27,273 21,677 1/6/2004 27,312 39 Pound Sterling 9,621 5,395 1/6/2004 9,630 9 ------------- ----------- ------------- $ 87,661 $ 87,924 $ 263 =============
313 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED COMMITMENTS, CONTINUED
NET UNREALIZED CONTRACTS TO SETTLEMENT APPRECIATION/ DELIVER IN EXCHANGE FOR DATE VALUE (DEPRECIATION) ------------- --------------- ---------- ----------- -------------- UTILITIES, CONTINUED SALES Euro 107,862 $ 134,202 1/2/2004 $ 135,900 ($1,698) Euro 35,386 44,190 1/5/2004 44,585 (395) --------------- ----------- ------------- $ 178,392 $ 180,485 ($2,093) ------------- ($1,830) ============= GLOBAL ALLOCATION PURCHASES Swedish Krona $ 17,241 125,000 1/2/2004 $ 17,378 $ 137 Japanese Yen 20,580 2,200,000 1/6/2004 20,535 (45) Euro 1,628,703 1,340,000 6/17/2004 1,680,806 52,103 Japanese Yen 2,479,109 267,000,000 6/17/2004 2,505,854 26,745 Singapore Dollar 905,850 1,550,000 6/17/2004 914,239 8,389 ------------- ----------- ------------- $ 5,051,483 $ 5,138,812 $ 87,329 ------------- SALES British Pound 2,450,000 $ 4,210,962 6/17/2004 $ 4,314,647 ($103,685) Swedish Krona 5,900,000 796,910 6/17/2004 814,160 (17,250) --------------- ----------- ------------- $ 5,007,872 $ 5,128,807 ($120,935) ------------- ($33,606) ============= STRATEGIC BOND PURCHASES Euro $ 21,215,617 17,690,000 2/25/2004 $22,254,628 $ 1,039,011 ------------- ----------- ------------- SALES Euro 53,273,510 $ 64,031,88 2/25/2004 $67,019,906 ($2,988,021) --------------- ----------- ------------- ($1,949,010) ============= GLOBAL BOND PURCHASES Euro Currency $ 22,288,233 18,475,000 1/7/2004 $23,272,921 $ 984,688 Hong Kong Dollar 619,762 4,810,000 1/8/2004 619,690 (72) Japanese Yen 65,158,732 7,022,014,000 1/15/2004 65,575,126 416,394 Canadian Dollar 2,267,379 2,966,000 1/23/2004 2,292,562 25,183 Pound Sterling 3,575,335 2,070,000 1/23/2004 3,688,379 113,044 Danish Krone 2,663,290 16,355,000 3/9/2004 2,761,713 98,423 ------------- ----------- ------------- $ 96,572,731 $98,210,391 $ 1,637,660 ------------- SALES Euro 2,725,000 $ 3,331,095 1/7/2004 $ 3,432,677 ($101,582) Australian Dollar 2,084,000 1,484,068 2/5/2004 1,562,491 (78,423) Swedish Krona 3,671,000 495,645 3/9/2004 508,694 (13,049) Australian Dollar 2,956,000 2,096,100 3/22/2004 2,203,940 (107,840) --------------- ----------- ------------- $ 7,406,908 $ 7,707,802 ($300,894) ------------- $ 1,336,766 ============= TOTAL RETURN PURCHASES Japanese Yen $ 3,375,992 363,834,000 1/15/2004 $ 3,397,667 $ 21,675 ------------- ----------- ------------- SALES Euro 2,156,000 $ 2,598,133 1/7/2004 $ 2,715,909 ($117,776) --------------- ----------- ------------- ($96,101) ============= REAL RETURN BOND SALES Euro 1,600,000 $1,971,376 1/7/2004 $ 2,015,530 ($44,154) ---------------- ----------- =============
314 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED COMMITMENTS, CONTINUED
NET UNREALIZED CONTRACTS TO SETTLEMENT APPRECIATION/ DELIVER IN EXCHANGE FOR DATE VALUE (DEPRECIATION) ------------- --------------- ---------- ----------- -------------- INTERNATIONAL EQUITY SELECT PURCHASES Euro $ 279,524 223,261 1/5/2004 $ 281,299 $ 1,775 Pound Sterling 552,210 310,230 1/5/2004 553,776 1,566 Swiss Franc 407,746 506,014 1/6/2004 408,966 1,220 ------------- ----------- ------------- $ 1,239,480 1,244,041 $ 4,561 =============
9. FOREIGN SECURITIES. Investing in securities of foreign companies and foreign governments involves special risks and consideration not typically associated with investing in securities of domestic companies and the United States Government. These risks include revaluation of currencies and future adverse political and economic developments. Moreover, securities of foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of the United States. 10. LINE OF CREDIT. All Portfolios with the exception of US Government, Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460, Lifestyle Conservative 280, American Growth, American International, American Growth-Income, and American Blue Chip Income and Growth have entered into an agreement which enables them to participate in a $100 million unsecured committed line of credit with State Street Corporation. Borrowings will be made solely to temporarily finance the repurchase of capital shares. Interest is charged to each participating Portfolio based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.09% per annum, payable at the end of each calendar quarter, based on the average daily-unused portion of the line of credit is charged to each participating portfolio on a prorated basis based on average net assets. For the year ended December 31, 2003, there were no borrowings on the line of credit. 11. GUARANTEES AND IMDEMNIFICATIONS. Under the Trust's organizational documents, its officers and trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust expects the risk of loss to be remote. 12. FEDERAL INCOME TAX INFORMATION. Because federal income tax regulations may differ from generally accepted accounting principles, income and capital gain distributions determined in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Accordingly, the composition of net assets for tax purposes differs from amounts reflected in the accompanying financial statements. These differences are primarily due to differing treatment for futures and options transactions, foreign currency transactions, paydowns, market discount on debt securities, losses deferred with respect to wash sales, investments in passive foreign investment companies and excise tax regulations. The tax character of distributions paid (with the exception of Money Market) during 2003 was as follows:
LONG TERM TAX CAPITAL RETURN OF TOTAL PORTFOLIO ORDINARY INCOME GAINS CAPITAL DISTRIBUTIONS - ------------------------------------------------- --------------- --------- --------- ------------- Pacific Rim Emerging Markets $ 92,281 -- -- $ 92,281 Emerging Growth 347,297 -- -- 347,297 Financial Services 121,346 -- -- 121,346 International Stock 1,637,973 -- -- 1,637,973 Overseas 1,832,814 -- -- 1,832,814 International Value 3,129,097 -- -- 3,129,097 Global Equity 3,373,458 -- -- 3,373,458 Quantitative All Cap 151,320 -- -- 151,320 Large Cap Growth 1,206,747 -- -- 1,206,747 Quantitative Equity 1,699,756 -- -- 1,699,756 Blue Chip Growth 658,231 -- -- 658,231 U.S. Large Cap (formerly, U.S. Large Cap Value) 2,176,684 -- -- 2,176,684 Strategic Value (formerly, Capital Opportunities) 14,868 -- -- 14,868 Large Cap Value 233,203 -- -- 233,203 Utilities 435,175 -- -- 435,175 Real Estate Securities 11,173,118 -- -- 11,173,118 Small Company Value 1,733,142 $ 474,277 -- 2,207,419 Mid Cap Value 1,631,327 -- -- 1,631,327 Value 3,123,000 -- -- 3,123,000 All Cap Value 46,123 -- -- 46,123 Equity Index 1,083,167 -- -- 1,083,167 Fundamental Value 1,160,779 -- -- 1,160,779
315 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED FEDERAL INCOME TAX INFORMATION, CONTINUED
LONG TERM TAX CAPITAL RETURN OF TOTAL PORTFOLIO ORDINARY INCOME GAINS CAPITAL DISTRIBUTIONS - ------------------------------------------------- --------------- ----------- ----------- ------------- Growth & Income $ 15,127,333 -- -- $ 15,127,333 Great Companies-America 1,801 -- -- 1,801 Equity-Income 19,682,259 $23,262,726 -- 42,944,985 Income & Value 10,193,021 -- -- 10,193,021 Balanced 3,594,017 -- -- 3,594,017 Global Allocation (formerly, Tactical Allocation) 312,601 -- -- 312,601 High Yield 27,672,782 -- -- 27,672,782 Strategic Bond 24,018,282 -- -- 24,018,282 Global Bond 8,686,002 -- -- 8,686,002 Diversified Bond 17,790,707 -- -- 17,790,707 Investment Quality Bond 27,043,098 -- -- 27,043,098 Total Return 75,199,549 14,433,806 -- 89,633,355 U.S. Government Securities 29,140,408 -- -- 29,140,408 International Index 1,267,733 -- -- 1,267,733 500 Index 7,726,669 -- -- 7,726,669 Lifestyle Aggressive 1000 645,465 -- $ 456,848 1,102,313 Lifestyle Growth 820 10,856,371 -- 2,247,970 13,104,341 Lifestyle Balanced 640 26,112,217 -- 4,475,488 30,587,705 Lifestyle Moderate 460 13,312,366 -- 1,746,715 15,059,081 Lifestyle Conservative 280 13,808,515 -- -- 13,808,515 High Grade Bond 44,076 -- -- 44,076
The tax character of distributions paid (with the exception of Money Market) during 2002 was as follows:
LONG TERM TAX CAPITAL RETURN OF TOTAL PORTFOLIO ORDINARY INCOME GAINS CAPITAL DISTRIBUTIONS - ------------------------------------------------- --------------- ----------- ----------- ------------- Pacific Rim Emerging Markets $ 67,949 -- -- $ 67,949 Health Sciences 155,128 -- -- 155,128 Small Company Blend 330,218 -- -- 330,218 Financial Services 777 -- -- 777 International Stock 1,144,916 -- -- 1,144,916 Overseas 2,262,088 -- -- 2,262,088 International Value 1,856,047 -- -- 1,856,047 Global Equity 6,111,578 -- -- 6,111,578 Large Cap Growth 1,467,443 -- -- 1,467,443 Quantitative Equity 1,077,631 -- -- 1,077,631 U.S. Large Cap Value 1,472,309 -- -- 1,472,309 Utilities 1,033 -- -- 1,033 Real Estate Securities 8,237,956 -- -- 8,237,956 Small Company Value 897,097 $ 1,228,154 -- 2,125,251 Value 2,730,137 4,307,635 -- 7,037,772 All Cap Value 845 -- -- 845 Equity Index 1,019,444 -- -- 1,019,444 Fundamental Value 152,780 -- -- 152,780 Growth & Income 12,307,222 74,936,045 -- 87,243,267 Equity-Income 18,021,008 29,751,648 -- 47,772,656 Income & Value 10,545,302 -- -- 10,545,302 Balanced 3,966,825 -- -- 3,966,825 Tactical Allocation 1,617 -- -- 1,617 High Yield 29,238,979 -- -- 29,238,979 Strategic Bond 22,248,254 -- -- 22,248,254 Diversified Bond 13,630,432 -- -- 13,630,432
316 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED FEDERAL INCOME TAX INFORMATION, CONTINUED
LONG TERM TAX RETURN PORTFOLIO ORDINARY INCOME CAPITAL GAINS OF CAPITAL TOTAL DISTRIBUTIONS - --------- --------------- ------------- ---------- ------------------- Investment Quality Bond $22,928,748 -- -- $22,928,748 Total Return 42,172,422 $2,532,874 -- 44,705,296 U.S. Government Securities 23,900,322 -- -- 23,900,322 Small Cap Index 603,721 -- -- 603,721 International Index 781,194 -- -- 781,194 Mid Cap Index 517,015 -- -- 517,015 Total Stock Market Index 651,863 -- -- 651,863 500 Index 16,495 -- -- 16,495 Lifestyle Aggressive 1000 696,647 -- $ 811,986 1,508,633 Lifestyle Growth 820 11,870,382 -- 4,635,393 16,505,775 Lifestyle Balanced 640 24,874,616 -- 3,150,408 28,025,024 Lifestyle Moderate 460 9,644,174 -- 420,635 10,064,809 Lifestyle Conservative 280 6,521,724 -- 285,303 6,807,027 Small-Mid Cap 4 -- -- 4 High Grade Bond 538,391 11,551 -- 549,942
The tax-basis components of distributable earnings at December 31, 2003 were as follows:
UNREALIZED UNDISTRIBUTED UNDISTRIBUTED APPRECIATION CAPITAL LOSS PORTFOLIO ORDINARY INCOME REALIZED GAIN (DEPRECIATION) CARRYFORWARDS - --------- --------------- ------------- -------------- ------------- Science & Technology -- -- $33,039,383 ($1,039,092,835) Pacific Rim Emerging Markets $445,965 -- 6,729,590 (13,337,724) Health Sciences -- -- 19,055,143 (3,178,289) Emerging Growth 258,695 -- 640,409 -- Aggressive Growth -- -- 57,025,226 (156,260,958) Emerging Small Company -- -- 77,425,108 (82,980,604) Small Company Blend -- -- 22,677,960 (45,501,732) Dynamic Growth -- -- 29,028,099 (178,557,216) Mid Cap Stock -- -- 66,326,189 (29,805,538) Natural Resources 5,059,384 -- 39,249,430 -- All Cap Growth -- -- 97,591,774 (292,693,467) Strategic Opportunities 472,827 -- 72,666,371 (672,048,353) Financial Services 327,050 -- 12,732,995 (1,965,499) International Stock 3,486,712 -- 69,751,722 (115,855,485) Overseas 1,826,653 -- 67,076,302 (164,995,000) International Small Cap 437,810 -- 85,166,331 (124,250,578) International Value 5,842,163 -- 67,036,224 (29,491,275) Quantitative Mid Cap -- -- 25,153,784 (38,337,849) Mid Cap Core 553,655 -- 5,959,809 -- Global Equity 6,517,012 -- 18,970,957 (93,189,593) Strategic Growth -- -- 25,222,897 (17,061,480) Capital Appreciation -- -- 28,040,636 (17,550,083) Quantitative All Cap 168,177 $ 3 492,413 -- All Cap Core (formerly Growth) 1,210,378 -- 26,694,793 (329,046,685) Large Cap Growth 1,289,315 -- 45,397,435 (218,346,080) Quantitative Equity 2,066,036 -- 20,715,497 (234,485,944) Blue Chip Growth 1,620,528 -- 138,241,644 (197,223,958) U.S. Large Cap (formerly, U.S. Large Cap Value) 1,829,753 -- 90,969,891 (86,585,268) Strategic Value (formerly, Capital Opportunities) 583,696 -- 16,305,278 (6,233,080) Large Cap Value 208,849 -- 1,275,448 -- Utilities 610,003 -- 5,547,003 (3,668,057) Real Estate Securities 17,512,180 -- 125,776.462 (1,226,789)
317 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED FEDERAL INCOME TAX INFORMATION, CONTINUED
UNREALIZED UNDISTRIBUTED UNDISTRIBUTED APPRECIATION CAPITAL LOSS PORTFOLIO ORDINARY INCOME REALIZED GAIN (DEPRECIATION) CARRYFORWARDS - --------- --------------- ------------- -------------- ------------- Small Cap Opportunities $ 832,206 $ 574,108 $ 13,523,970 -- Small Company Value 894,470 7,193,665 88,770,102 -- Special Value 383,853 5,812 2,430,967 -- Mid Cap Value 2,523,735 -- 68,035,646 ($5,592,245) Value 1,751,830 -- 51,771,400 (47,521,185) All Cap Value 910,435 -- 43,263,634 (3,147,848) Equity Index 1,026,275 -- (8,385,531) (4,584,805) Fundamental Value 2,975,638 -- 88,457,333 (6,477,202) Growth & Income 13,682,519 -- 207,122,695 (123,068,673) Great Companies-America 555 -- 268,774 -- Equity-Income 29,698,612 12,028,804 110,808,159 -- Income & Value 8,256,938 -- 79,711,537 (60,099,871) Balanced 2,950,669 -- 9,038,439 (65,165,289) Global Allocation (formerly, Tactical Allocation) 926,293 -- 8,383,053 (25,683,232) High Yield 51,597,667 -- 31,074,518 (106,363,507) Strategic Bond 25,363,709 -- 21,052,640 (20,974,270) Global Bond 22,853,383 -- 18,356,509 (203,643) Diversified Bond 15,484,128 -- 9,409,706 (732,385) Investment Quality Bond 28,339,779 -- 26,698,772 (17,243,508) Total Return 58,630,721 3,445,706 17,500,343 -- Real Return Bond 7,190,733 -- 2,575,781 -- U.S. Government Securities 21,422,575 2,079,697 7,507,840 -- Small Cap Index 608,272 -- 23,144,187 (2,952,346) International Index 35,854 -- (1,248,155) (4,855,363) Mid Cap Index 758,800 265,612 20,252,768 -- Total Stock Market Index 1,108,452 -- 1,464,948 (2,675,535) 500 Index 10,528,836 -- (76,034,580) (37,238,026) Lifestyle Aggressive 1000 -- -- 67,447,996 (45,920,397) Lifestyle Growth 820 -- -- 237,867,509 (146,607,666) Lifestyle Balanced 640 -- -- 228,675,269 (108,319,176) Lifestyle Moderate 460 -- -- 61,770,260 (14,629,248) Lifestyle Conservative 280 2,010,344 555,598 25,855,190 -- Small-Mid Cap 99,190 -- 22,112,853 -- International Equity Select 1,163,097 4,204 21,158,091 -- High Grade Bond 4,038,766 -- (1,027,194) (209,576) American Growth 135,259 -- 23,779,663 -- American International 5,778,979 -- 27,474,298 -- American Growth-Income 1,437,400 -- 15,391,112 -- American Blue Chip Income and Growth -- -- 23,727,477 --
13. CAPITAL LOSS CARRYFORWARDS. At December 31, 2003, capital loss carryforwards available to offset future realized gains were approximately:
EXPIRATION YEAR PORTFOLIO 2006 2007 2008 2009 2010 2011 - --------- ------------ ---------- ------------ ------------ ------------ ----------- Science & Technology - - $ 1,220,000 $696,724,000 $246,102,000 $95,047,000 Pacific Rim Emerging Markets $ 599,000 - - 7,852,000 3,319,000 1,568,000 Health Sciences - - - - 3,178,000 - Aggressive Growth 572,000 - 4,331,000 93,743,000 53,458,000 4,157,000 Emerging Small Company - - - 24,979,000 46,305,000 11,697,000 Small Company Blend - - - 19,321,000 17,910,000 8,271,000 Dynamic Growth - - 507,000 107,100,00 67380,000 3,570,000
318 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED FEDERAL INCOME TAX INFORMATION, CONTINUED
EXPIRATION YEAR PORTFOLIO 2006 2007 2008 2009 2010 2011 - --------- -------- ------------ ------------ ------------ ------------ ------------ Mid Cap Stock - - - $ 8,404,000 $ 21,402,000 - All Cap Growth - - - 178,151,000 80,357,000 $ 34,185,000 Strategic Opportunities - - - 331,753,000 340,295,000 - Financial Services - - - 135,000 168,000 1,662,000 International Stock - - - 19,465,000 96,033,000 357,000 Overseas - - - 88,227,000 64,288,000 12,480,000 International Small Cap - - $ 39,940,000 67,800,000 16,510,000 - International Value - - - 8,907,000 20,274,000 310,000 Quantitative Mid Cap - - - 17,005,000 21,333,000 - Global Equity - - - 22,593,000 70,597,000 - Strategic Growth - - - 1,510,000 15,551,000 - Capital Appreciation - - - 3,270,000 11,304,000 2,976,000 All Cap Core - - 2,584,000 189,385,000 137,078,000 - Large Cap Growth - - - 86,225,000 115,233,000 16,888,000 Quantitative Equity - - - 128,938,000 77,934,000 27,614,000 Blue Chip Growth - - - 65,883,000 89,012,000 42,329,000 U.S. Large Cap (formerly, U.S. Large Cap Value) - - - 2,397,000 50,498,000 33,690,000 Strategic Value (formerly, Capital Opportunities) - - - - 6,233,000 - Utilities - - - - 3,668,000 - Real Estate Securities - - 1,227,000 - - - Mid Cap Value - - - 471,000 3,526,000 1,595,000 Value - - - - 25,115,000 22,406,000 All Cap Value - - - 277,000 671,000 2,200,000 Equity Index - - - 424,000 4,082,000 79,000 Fundamental Value - - - 265,000 5,001,000 1,211,000 Growth & Income - - - - 80,781,000 42,288,000 Income & Value - - - 2,211,000 28,324,000 29,565,000 Balanced - - 5,432,000 35,067,000 17,568,000 7,098,000 Global Allocation (formerly, Tactical Allocation) - - - - 4,894,000 20,789,000 High Yield - $ 2,607,000 5,017,000 6,052,000 73,499,000 19,189,000 Strategic Bond - 10,735,000 3,587,000 1,478,000 5,174,000 - Global Bond - 204,000 - - - - Diversified Bond - - - - 732,000 - Investment Quality Bond - 1,148,000 6,097,000 2,482,000 7,517,000 - Small Cap Index - - - - 2,952,000 - International Index - - - 50,000 4,805,000 - Total Stock Market Index - - - - 2,676,000 - 500 Index - - 374,000 5,746,000 31,116,000 2,000 Lifestyle Aggressive 1000 - - - 6,453,000 29,278,000 10,189,000 Lifestyle Growth 820 - - - 15,153,000 110,546,000 20,909,000 Lifestyle Balanced 640 - - - - 101,809,000 6,510,000 Lifestyle Moderate 460 - - - - 14,629,000 - High Grade Bond - - - - - 210,000
319 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS (UNAUDITED) TRUSTEES AND OFFICERS INFORMATION. The Trustees of the Trust, together with information as to their principal occupations during the past five years, are listed below. Each Trustee oversees all Trust portfolios. (Currently, there are 76 portfolios).
DISINTERESTED TRUSTEES POSITION WITH PRINCIPAL OCCUPATION NAME, ADDRESS AND AGE THE TRUST DURING PAST FIVE YEARS - --------------------- ------------- ---------------------- Don B. Allen Trustee Senior Lecturer, William E. Simon Graduate School of 73 Tremont Street Business Administration, University of Rochester (Retired 2000). Boston, MA 02108 (since 1985) Age: 75 Charles L. Bardelis Trustee President and Executive Officer, Island Commuter Corp. 73 Tremont Street (Marine Transport). Boston, MA 02108 (since 1988) Age: 62 Samuel Hoar Trustee Senior Mediator, Arbitrator, Regional Manager, JAMS, LLC, 73 Tremont Street August 1999 to date; Senior Mediator, Arbitrator, Regional Boston, MA 02108 (since 1989) Director of Professional Services, J.A.M.S./Endispute, Age: 76 Inc., June 1994 to August 1999. F. David Rolwing Trustee Former Chairman, President and CEO, Montgomery Mutual 73 Tremont Street Insurance Company, 1991 to 1999.(Retired 1999). Boston, MA 02108 (since 1997*) Age: 69
* Prior to 1997, Mr. Rolwing was a Trustee of Manulife Series Fund, Inc., which merged into the Trust on December 31, 1996. TRUSTEES AFFILIATED WITH THE TRUST AND OFFICERS OF THE TRUST
POSITION WITH PRINCIPAL OCCUPATION NAME, ADDRESS AND AGE THE TRUST DURING PAST FIVE YEARS - --------------------- ------------- ------------------------ John D. Richardson # Chairman of the Retired; Former Senior Executive Vice President, Office of the 200 Bloor Street East Board of Trustees President, Manulife Financial, February 2000 to March 2002 Toronto, Ontario, Canada (Retired, March 2002); Executive Vice President and General M4W 1E5 (since 1997**) Manager, U.S. Operations, Manulife Financial, January 1995 to January 2000. Director of BNS Split Corp, a publicly traded Age: 66 company on the Toronto Stock Exchange. John D. DesPrez III # Trustee Chairman and President, The Manufacturers Life Insurance 73 Tremont Street Company (U.S.A.), Executive Vice President, U.S. Operations, Boston, MA 02108 (since 2000) Manulife Financial Age: 47 James D. Gallagher President Executive Vice President, The Manufacturers Life Insurance 73 Tremont Street Company (U.S.A.), January 1996 to present; President, The Boston, MA 02108 (since 2001) Manufacturers Life Insurance Company of New York, August Age: 49 1999 to present; Vice President, Secretary and General Counsel, The Manufacturers Life Insurance Company of North America, June 1994 to date. Gordon M. Shone Vice President and Senior Vice President, The Manufacturers Life Insurance 73 Tremont Street Chief Financial Company (U.S.A.), January 2001 to present. Vice President, Boston, MA 02108 Officer The Manufacturers Life Insurance Company (U.S.A.), August Age: 47 1998 to December 2000. (since 2003)
** Prior to 1997, Mr. Richardson was a Trustee of Manulife Series Fund, Inc., which merged into the Trust on December 31, 1996. 320 MANUFACTURERS INVESTMENT TRUST NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED TRUSTEES AFFILIATED WITH THE TRUST AND OFFICERS OF THE TRUST, CONTINUED
POSITION WITH PRINCIPAL OCCUPATION NAME, ADDRESS AND AGE THE TRUST DURING PAST FIVE YEARS - --------------------- ------------- ---------------------- John R. Ostler Treasurer Senior Vice President and Chief Financial Officer, U.S. Operations, The 200 Bloor Street East Manufacturers Life Insurance Company, October 1, 2000 to present; Vice President Toronto, Ontario, Canada (since 2000) and Corporate Actuary, The Manufacturers Life Insurance Company, March 1998 to M4W 1E5 September 2000; Vice President & CFO U.S. Individual Insurance, The Age: 51 Manufacturers Life Insurance Company, 1992 to March 1998; Vice President, U.S. Insurance Products, The Manufacturers Life Insurance Company, 1990 - 1992; Assistant Vice President & Pricing Actuary, U.S. Insurance, The Manufactures Life Insurance Company, 1988-1990. Andrew Corselli Secretary Vice President and Senior Counsel, U.S. Operations Law 73 Tremont Street Department, Manulife Financial, March 2001 to present; The Boston, MA 02108 (since 2002) Prudential Insurance Company of America, Assistant General Age: 57 Counsel & Chief of Litigation, June 1988 to June 2000.
# Trustee who is an "interested person," as defined in the 1940 Act, due to his position with Manulife Financial Corporation (or its affiliates), the ultimate controlling parent of the investment adviser. Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an indefinite term until his successor is duly elected and qualified or until he dies, retires, resigns, is removed or becomes disqualified. None of the Trustees is a director of other complexes except as noted above. The Statement of Additional Information, a separate document with supplemental information not contained in the Prospectus, includes additional information on the Board of Trustees and can be obtained without charge by calling 1-800-344-1029 or on the Securities and Exchange Commission ("SEC") Internet site at http://www.sec.gov. PROXY VOTING POLICY. From time to time, mutual funds are required to vote proxies related to the securities held by the Portfolios. Each of the Manufacturers Investment Trust Portfolios vote proxies according to the Trust's proxy voting policies and procedures approved by the Board of Trustees. A description of the Trust's proxy voting policies and procedures are available without charge, upon request, by calling 1-800-344-1029 or on the SEC Internet website at http://www.sec.gov. 321 EX-99.(17)(E) 15 dex9917e.txt FORM OF PARTICIPATION AGREEMENT PARTICIPATION AGREEMENT THIS AGREEMENT is made and entered into this ___ day of ________, 2004 by and among JOHN HANCOCK LIFE INSURANCE COMPANY, a stock life insurance company existing under the laws of the Commonwealth of Massachusetts ("JHLICO"), JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY, a stock life insurance company organized under the laws of the Commonwealth of Massachusetts ("JHVLICO") (JHLICO and JHVLICO are each referred to herein as a "Company" and collectively as the "Companies"), each on behalf of itself and its variable annuity and variable life insurance separate accounts (each an "Account;" collectively, the "Accounts"), and JOHN HANCOCK VARIABLE SERIES TRUST I, a business trust organized under the laws of the Commonwealth of Massachusetts (the "Trust"). WHEREAS, the Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended (the "1933 Act"); WHEREAS, the Trust serves as an investment vehicle underlying variable life insurance and variable annuity contracts issued by the Companies (the "Contracts"); WHEREAS, the beneficial interest in the Trust is divided into separate series of shares as identified in the Trust's registration statement under the 1933 Act (as amended from time to time) (the "Funds"), each representing the interest in a particular portfolio of securities and other assets and each of which may issue multiple classes of shares; WHEREAS, the Trust operates pursuant to an order obtained from the Securities and Exchange Commission ("SEC") granting exemptions from certain provisions of and rules under the 1940 Act to the extent necessary to permit shares of the Trust to be sold to and held by, among others, variable annuity and variable life insurance separate accounts ("separate accounts") of both affiliated and unaffiliated life insurance companies ("Participating Insurance Companies") and certain qualified pension and retirement plans ("Qualified Plans") (the "Exemptive Order"); WHEREAS, each of the Companies has registered or will register its Contracts under the 1933 Act, except to the extent a particular Contract is or will be exempt from such registration; WHEREAS, each of the Companies has registered or will register each of its Accounts as a unit investment trust under the 1940 Act, except to the extent a particular Account is or will be exempt from such registration; and WHEREAS, to the extent permitted by applicable insurance laws and regulations, the Companies intend to purchase shares of the Funds on behalf of their respective Accounts to fund the Contracts, and the Trust is authorized to sell such shares to unit investment trusts such as each Account at net asset value; NOW, THEREFORE, in consideration of their mutual promises set forth herein, the Companies and the Trust agree as follows: 1. PURCHASE AND REDEMPTION OF FUND SHARES 1.1 Subject to the terms of the Underwriting and Indemnity Agreement in effect from time to time between the Trust and Signator Investors, Inc., organized under the laws of Delaware ("Signator"), the Trust agrees to make shares of the Funds available for purchase by the Accounts (including the subaccounts thereof) at the applicable net asset value per share next computed, in accordance with the provisions of the then current prospectus and statement of additional information of the Trust, after receipt by the Trust or its designee of an order for purchase. The Trust agrees to use reasonable efforts to calculate such net asset value on each day on which the New York Stock Exchange is open for regular trading. Notwithstanding the foregoing, the Board of Trustees of the Trust (the "Board" or the "Trustees") may refuse to sell shares of any Fund to any person, or suspend or terminate the offering of shares of any Fund, if such action is required by law or by regulatory authorities having jurisdiction or is, in the sole discretion of the Trustees acting in good faith and in light of their fiduciary duties under federal and any applicable state laws, in the best interests of such Fund and its shareholders (including variable contract owners). 1.2 Each of the Companies shall submit payment for the purchase of shares of a Fund on behalf of an Account by 2:00 p.m., New York time on the next Business Day after an order to purchase such shares is made in accordance with the provisions of Section 1.1 hereof. "Business Day" shall mean any day on which the New York Stock Exchange is open for regular trading and on which the Trust calculates the net asset value of shares of the Funds. Payment shall be in federal funds transmitted by wire to the Trust's custodian. 1.3 The Trust agrees to redeem for cash (except as otherwise provided in the Trust's prospectus) any full or fractional shares of any Fund, when requested by a Company on behalf of an Account, at the net asset value next computed, in accordance with the provisions of the then current prospectus and statement of additional information of the Trust, after receipt by the Trust or its designee of a request for redemption. The Trust shall make payment for such shares in the manner established from time to time by the Trust. Payment of redemption proceeds will normally be paid to a Company on behalf of its Account in federal funds transmitted by wire by 2:00 p.m., New York time on the next Business Day after receipt by the Trust or its designee of a request for redemption. 1.4 Each of the Companies agrees that all purchases and redemptions by its Accounts of shares of the Funds will be in accordance with the provisions of then current prospectus and statement of additional information of the Trust and in accordance with any procedures that the Trust, Signator or the Trust's transfer agent may establish from time to time governing purchases and redemptions of shares of the Funds generally. 1.5 Payments by a Company for the purchase of shares of the Funds by its Accounts under Section 1.2 and payments by the Trust of the proceeds of the redemption of shares of the Funds by such Accounts under Section 1.3 may be netted against one another on any Business Day for the purpose of determining the amount of any wire transfer on that Business Day. 1.6 Issuance and transfer of the Trust's shares will be by book entry only. Share certificates will not be issued. Shares ordered from the Trust will be recorded on the transfer records of the Trust in an appropriate title for each Account or the appropriate subaccount of each Account. 1.7 The Trust will furnish same day notice by e-mail, fax or telephone (if by telephone, it must be followed by written confirmation) to the Companies of any income dividends or capital gain distributions payable on the shares of the Funds. Each of the Companies hereby elects to receive all such income dividends and capital gain distributions as are payable on shares of a Fund in additional shares of that Fund. Each of the Companies reserves the right to revoke this election and to receive all such income dividends and capital gain distributions in cash. The Trust will notify the Companies or their designee(s) of the number of shares so issued as payment of such dividends and distributions. 2 1.8 The Trust will make the net asset value per share for each Fund available to the Companies on a daily basis as soon as reasonably practical after the net asset value per share is calculated and shall use its best efforts to make such net asset value per share available by 7:00 p.m. New York time. 1.9 For purposes of this Article 1, each of the Companies shall be the designee of the Trust for receipt of purchase orders and requests for redemption relating to the Funds from each of its Accounts that result from final orders or requests from Contract holders or that otherwise result automatically from the operation of the Contracts, and receipt by a Company will constitute receipt by the Trust, provided that the Trust receives notice of a purchase order or request for redemption by 10:00 a.m. New York time on the next following Business Day. Neither Company shall be a designee of the Trust pursuant to this Section 1.9 with respect to any orders for purchase or redemption of Fund shares that do not result from orders or requests from Contract owners, or that do not otherwise result automatically from the operation of the Contracts. Specifically, and without limitation, neither Company shall be such a designee with respect to (1) any contribution of assets to an Account or withdrawal of assets from the Account that does not result from Contract holder orders or requests, unless such transactions are in accordance with established administrative practices of the Company for regularly contributing or withdrawing assets from the Account, (2) any transfer between Funds of the Trust of assets that are not being held to support Contracts; or (3) any purchase or redemption of shares of a Fund that is not on behalf of an Account. Each Company agrees to communicate separately to Signator Investors, Inc. any Account orders for purchase or redemption of Fund shares as to which it is not entitled to act as the Trust's designee and that such orders, pursuant to Section 5(d) of the Amended and Restated Underwriting and Indemnity Agreement by and among the Trust, Signator Investors, Inc. and JHLICO, dated as of March 24, 2004 (or any successor provision), will be effected at the net asset value per share next computed, in accordance with the provisions of the then current prospectus and statement of additional information of the Trust, after receipt thereof by Signator Investors, Inc. the Trust or its designee. Neither Company shall permit any Contract owner to revoke any previously placed order or request once the time for computing the next applicable Fund share net asset value has passed. 1.10 The Trust agrees that shares of the Funds will be sold only to (a) Participating Insurance Companies to be held in "segregated asset accounts" within the meaning of Treas. Reg. Section 1.817-5(e) through which public access to the Fund is available only pursuant "variable contracts," within the meaning of Section 817(d) of the Code, (b) Qualified Plans, and (c) other purchasers of the kind specified in Treas. Reg. Section 1.817-5(f)(3) (or any successor regulation) ("Other Purchasers") as from time to time in effect; and the Companies agree not to sell or transfer an Account's shares in a Fund to any other person without the Trust's written consent. 1.11 Each Company agrees to provide to the Trust such information as the Trust may from time to time reasonably request to evaluate whether any holders of that Company's Contracts may be engaging in "market timing" or other frequent transfer activity that may be contrary to the interests of other participants in a Fund. 1.12 Each of the Companies has received a copy of the Exemptive Order and agrees to perform the obligations of a Participating Insurance Company under such Order. 2. PROSPECTUSES AND PROXY STATEMENTS; VOTING 2.1 The Trust will prepare and be responsible for filing with the SEC and any state regulatory authorities requiring such filing all shareholder reports, proxy materials and prospectuses and statements of additional information of the Trust. The Trust will bear the costs of registration and qualification of the shares of the Funds, preparation and filing of the documents listed in this Section 2.1, and all taxes to which an issuer is subject on the issuance and transfer of its shares. 3 2.2 At the option of each of the Companies, the Trust will either (a) provide the Company with as many copies of the Trust's current prospectus, statement of additional information, annual report, semi-annual report, proxy materials and other shareholder communications, including any amendments or supplements to any of the foregoing, as the Company may reasonably request; or (b) provide the Company with camera ready copies of such documents in a form suitable for printing. Subject to Section 4.1 hereof, (i) expenses of furnishing such documents for marketing purposes will be borne by the Companies, (ii) expenses of furnishing prospectuses and prospectus supplements to current Contract owners will be borne by the Companies, and (iii) expenses of furnishing documents referred to in clause (a) above (other than prospectuses and supplements thereto) to current Contract owners will be borne by the Trust. The Companies assume sole responsibility for ensuring that the Trust's proxy materials are delivered to Contract owners in accordance with applicable federal and state securities laws. 2.3 The Trust will use its best efforts to provide the Companies, on a timely basis, with such information about the Trust, the Funds and the investment adviser and any subadvisers to any Fund, as the Companies may reasonably request in connection with the preparation of registration statements, prospectuses and other materials relating to the Contracts. 2.4 As long as and to the extent that the SEC interprets the 1940 Act to require pass-through voting privileges for variable contract owners, each of the Companies (i) will provide pass-through voting privileges to Contract owners whose Contract values are invested, through Accounts registered with the SEC under the 1940 Act, in shares of the Funds, (ii) may, to the extent it deems appropriate, provide pass-through voting privileges to Contract owners whose contract values are invested, through Accounts which are not so registered with the SEC, in shares of the Funds, (iii) when it provides pass-through voting privileges to Contract owners whose Contract values are invested through an Account in shares of a Fund, will vote shares held in that Account for which no Contract owner instructions are timely received by the Company in the same proportion as those shares of the Fund held in that Account for which Contract owner instructions are timely received, and (iii) will vote shares of a Fund which it is otherwise entitled to vote on any matter in the same proportion as the voting instructions which it has timely received from Contract owners with respect to that matter. Notwithstanding the foregoing, each of the Companies may vote shares of a Fund in such other manner as may be required or permitted by Rule 6e-2 or Rule 6e-3(T) under the 1940 Act or otherwise by the SEC or its staff. 3. SALES MATERIAL AND INFORMATION 3.1 Each of the Companies will use its best efforts to ensure that sales literature and other promotional material prepared by it or on its behalf in which the Trust, a Fund, any investment adviser or subadviser to any Fund or Signator (in its capacity as principal underwriter of the Trust shares) is named, conforms to all requirements of all applicable federal and state laws and rules and regulations, including all applicable rules and regulations of the National Association of Securities Dealers, Inc. (the "NASD"). 3.2 Neither of the Companies will give any information or make any representations or statements on behalf of the Trust or concerning the Trust in connection with the sale of the Contracts other than the information or representations contained in the registration statement, prospectus or statement of additional information for the Trust shares, as such registration statement, prospectus and statement of additional information may be amended or supplemented from time to time, or in reports or proxy statements for the Trust, or in sales literature or other promotional material approved in writing by the Trust or its designee, except with the written approval of the Trust or its designee. 3.3 The Trust will use its best efforts to ensure that sales literature and other promotional material prepared by it or on its behalf in which a Company, the Accounts or the Contracts are named, conforms to 4 all requirements of all applicable federal and state laws and rules and regulations, including all applicable rules and regulations of the NASD. 3.4 The Trust will not give any information or make any representations or statements on behalf of or concerning the Companies, the Accounts or the Contracts in connection with the sale of Trust shares other than the information or representations contained in the registration statements, prospectuses or statements of additional information for the Contracts, as such registration statements, prospectuses and statements of additional information may be amended or supplemented from time to time, or in published reports for each Account which are in the public domain or approved by a Company for distribution to Contract owners, or in sales literature or promotional material approved in writing by a Company or its designee, except with the written permission of the Company or its designee. 3.5 The Trust will provide to each of the Companies at least one complete copy of all registration statements, prospectuses, statements of additional information, shareholder annual, semi-annual and other reports, proxy statements, applications for exemptions, requests for no-action letters and any amendments to any of the foregoing, that relate to the Trust or any Fund promptly after the filing of each such document with the SEC or any other regulatory authority. 3.6 Each of the Companies will provide to the Trust at least one complete copy of all registration statements, prospectuses, statements of additional information, shareholder annual, semi-annual and other reports, solicitations for voting instructions, applications for exemptions, requests for no-action letters and any amendments to any of the foregoing, that relate to its Contracts or any of its Accounts promptly after the filing of each such document with the SEC or any other regulatory authority. 3.7 Each party hereto will provide to each other party, to the extent it is relevant to the Contracts or the Trust, a copy of any comment letter received from the staff of the SEC or the NASD, and such party's response thereto, following any examination or inspection by the staff of the SEC or the NASD. 3.8 As used herein, the phrase "sales literature and other promotional material" includes, but is not limited to, advertisements (such as material published or designed for use in a newspaper, magazine, or other periodical, radio, television, telephone or tape recording, videotape display, sign or billboard, motion picture or other public medium), sales literature (i.e., any written communication distributed or made generally available to customers or the public, including brochures, circulars, research reports, market letters, form letters, seminar texts, reprints or excerpts of any other advertisement, sales literature or published article), educational or training materials or other communications distributed or made generally available to some or all agents or employees. 4. FEES AND EXPENSES 4.1 The Trust will pay no fee or other compensation to the Companies under this Agreement. If the Trust or any Fund (or any class of shares thereof) adopts and implements a plan pursuant to Rule 12b-1 under the 1940 Act to finance distribution and other expenses, then, as a principal underwriter of the Trust, Signator, or an affiliate thereof, may make payments to the Companies to the extent consistent with applicable laws, regulations and rules and such plan. 5. DIVERSIFICATION 5.1 The Trust and each of the Funds will at all times use all reasonable efforts comply with Section 817(h)(1) of the Internal Revenue Code of 1986, as amended (the "Code"), and Treas. Reg. 1.817-5, as they may be amended from time to time (and any revenue rulings, revenue procedures, notices, and other published announcements of the Internal Revenue Service interpreting these sections), as if those 5 requirements applied directly to each such Fund relating to the diversification requirements for variable annuity, endowment or life insurance contracts. In addition, neither the Trust nor the Funds will knowingly take any action, or fail to take any action, that results in the inability of any Account investing in the Funds to treat a portion of each asset of a Fund as an asset of the Account, in accordance with Treas. Reg. Section 1.817-5(f), for purposes of satisfying the diversification requirements of Section 817(h)(1) of the Code and the Treasury Regulations hereunder. 6. POTENTIAL CONFLICTS 6.1 To the extent required by the Exemptive Order or by applicable law, the Board will monitor the Trust for the existence of any material irreconcilable conflict between or among the interests of variable contract owners whose contract values are invested through separate accounts, participants in Qualified Plans and Other Purchasers investing in the Trust and will determine what action, if any, should be taken in response to any such conflict. A material irreconcilable conflict may arise for a variety of reasons, including: (a) an action by any state insurance regulatory authority; (b) a change in applicable federal or state insurance, tax, or securities laws or regulations, or a public ruling, private letter ruling, no-action or interpretative letter, or any similar action by insurance, tax, or securities regulatory authorities; (c) an administrative or judicial decision in any relevant proceeding; (d) the manner in which the investments of any Fund are being managed; (e) a difference in voting instructions given by variable annuity contract owners, variable life insurance contract owners and, where applicable, participants in Qualified Plans; (f) a decision by a Participating Insurance Company to disregard the voting instructions of variable contract owners; or (g) a decision by a Qualified Plan, where applicable, to disregard participant voting instructions. The Trust will promptly inform the Companies if it determines that a material irreconcilable conflict exists and of the implications thereof. 6.2 Each of the Companies, on behalf of itself, its Accounts and any of its affiliates investing in a Fund, will report to the Board any potential or existing conflict as described in Section 6.1 of which it is or becomes aware. Each Company will assist the Board in carrying out its responsibilities under the Exemptive Order and under applicable law by providing the Board with all information reasonably necessary for the Board to consider any issues raised with respect to such conflict and by furnishing to the Board, at its reasonable request annually or more frequently, such other materials or reports as the Board may deem appropriate. Each of the Companies will inform the Board whenever it determines to disregard Contract owner voting instructions, and each of the Companies will carry out this and all of its other responsibilities under this Article 6 with a view only to the interests of its Contract owners. 6.3 If it is determined by a majority of the Board, or a majority of the disinterested Trustees, that a material irreconcilable conflict exists with respect to any Fund, each of the Companies, as applicable, shall, at its own expense, and to the extent reasonably practical (as determined by a majority of the Trust's disinterested Trustees), take whatever steps are necessary to remedy or eliminate the material irreconcilable conflict, up to and including: (1) withdrawing the assets allocable to some or all of its Accounts from the Trust or any Fund and reinvesting such assets in a different investment medium, including (but not limited to) another Fund, or submitting the question of whether such segregation should be implemented to a vote of all affected Contract owners and, as appropriate, segregating the assets of any appropriate group (i.e., variable annuity contract owners, variable life insurance contract owners or Contract owners of one or both Companies) that votes in favor of such segregation, or offering to the affected Contract owners the option of making such a change; and (2) establishing a new registered management investment company or managed separate account. In the event that the Board determines that any proposed action by a Company does not adequately remedy any material irreconcilable conflict, that Company will withdraw the affected Account's investment in the Trust or a Fund within six months after the Board informs the Company in writing of the foregoing determination, provided, however, that 6 such withdrawal will be limited to the extent required by any such material irreconcilable conflict as determined by a majority of the disinterested Trustees. 6.4 If a material irreconcilable conflict arises because of a decision by a Company to disregard Contract owner voting instructions and that decision represents a minority position or would preclude a majority vote, the Company may be required, at the Trust's election, to withdraw the relevant Account's investment in the Trust or a Fund, as applicable. No charge or penalty will be imposed as a result of any such withdrawal. 6.5 For purposes of Sections 6.3 and 6.4 of this Agreement, a majority of the Trustees who are not "interested persons" (as defined in Section 2(a)(19) of the 1940 Act) of the Trust will determine whether any proposed action adequately remedies any material irreconcilable conflict, but in no event will the Trust or any investment adviser to the Trust be required to establish a new funding medium for the Contracts. Nor shall a Company be required by Section 6.3 to establish any new funding medium for the Contracts if an offer to do so has been declined by vote of a majority of Contract owners materially adversely affected by the material irreconcilable conflict. 6.6 If and to the extent that Rule 6e-2 and Rule 6e-3(T) under the 1940 Act are amended, or proposed Rule 6e-3 is adopted, to provide exemptive relief from any provision of the Act or the rules promulgated thereunder with respect to "mixed or shared funding" (as understood for purposes of the Exemptive Order) on terms and conditions materially different from those contained in the Exemptive Order, then (a) the Trust and/or the Companies as well as the other Participating Insurance Companies, as appropriate, will take such steps as may be necessary to comply with Rules 6e-2 and 6e-3(T), as amended, and Rule 6e-3, as adopted, to the extent such rules are applicable; and (b) Sections 2.4, 6.1, 6.2, 6.3 and 6.4 of this Agreement shall continue in effect only to the extent that terms and conditions substantially identical to such Sections are contained in such Rule(s) as so amended or adopted. 6.7 The Trust hereby notifies the Companies that it may be appropriate to include in prospectuses for the Contracts disclosure regarding potential conflicts as described in Section 6.1 hereof. 7. REPRESENTATIONS AND WARRANTIES 7.1 Representations and Warranties of the Companies. (a) Each of the Companies represents and warrants that it is a life insurance company duly organized or existing and in good standing under applicable law and that each of its Accounts, prior to any issuance or sale of any Contracts by such Account and during the term of this Agreement, will be legally and validly established as a separate account pursuant to relevant state insurance law and either: (i) will be registered as a unit investment trust in accordance with the provisions of the 1940 Act; or (ii) will be exempt from such registration. (b) Each of the Companies represents and warrants that the Contracts issued by it are or, prior to the purchase of shares of any Fund in connection with funding such Contracts, will be registered under the 1933 Act, except to the extent a particular Contract is exempt from such registration, and will be issued and sold in compliance in all material respects with all applicable federal and state laws, including all applicable customer suitability requirements. (c) Each of the Companies represents and warrants that its registration statements for the Contracts and any amendments or supplement thereto will, when they become effective, conform in all material respects to the requirements of the 1933 Act and the 1940 Act and the rules and regulations of the SEC thereunder and will not contain any untrue statement of a material fact or omit to state a material fact 7 required to be stated therein or necessary to make the statements therein not misleading, provided, however, that this representation and warranty will not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company by or on behalf of the Trust expressly for use therein. (d) Each of the Companies represents and warrants that its Contracts are currently and at the time of issuance will be treated as modified endowment, annuity or life insurance contracts under applicable provisions of the Code and agrees that it will make all reasonable efforts to maintain such treatment and will notify the Trust immediately upon having a reasonable basis for believing that its Contracts or any of them have ceased to be so treated or might not be so treated in the future. (e) Each of the Companies represents and warrants that each Account of that Company in which Fund shares are held will be, at the time such shares are acquired, a "segregated asset account" within the meaning of Treas. Reg. Section 1.817-5(e) and agrees that it will make all reasonable efforts to maintain the Account's status as such and will notify the Trust immediately upon having a reasonable basis for believing that one or more of its Accounts holding Fund shares no longer have that status or might not have that status in the future. (f) Each of the Companies represents and warrants that it will not, without the prior written consent of the Trust, purchase shares of the Trust with Account assets derived from the sale of Contracts to individuals or entities which would cause the investment policies of any Fund to be subject to any limitations not in the Trust's then current prospectus or statement of additional information with respect to any Fund. 7.2 Representations and Warranties of the Trust (a) The Trust represents and warrants that it is lawfully organized and validly existing under the laws of the Commonwealth of Massachusetts and that it does and will at all times during the term of this Agreement comply in all material respects with the 1940 Act. (b) The Trust represents and warrants that shares of the Funds offered and sold pursuant to this Agreement will be registered under the 1933 Act, duly authorized for issuance and sold in compliance with the laws of the Commonwealth of Massachusetts and all applicable federal and state securities laws and that the Trust is and will remain during the term of this Agreement registered as an open-end management investment company under the 1940 Act. The Trust agrees that it will amend the registration statement for its shares under the 1933 Act and the 1940 Act from time to time as required in order to permit the continuous offering of its shares in accordance with the 1933 Act. The Trust will register and qualify the shares for sale in accordance with the laws of the various states only if and to the extent deemed advisable by the Trust or Signator. (c) The Trust represents and warrants that the registration statement for shares of the Funds and any amendments or supplement thereto will, when they become effective, conform in all material respects to the requirements of the 1933 Act and the 1940 Act and the rules and regulations of the SEC thereunder and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, provided, however, that this representation and warranty will not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Trust by or on behalf of a Company expressly for use therein. (d) The Trust represents and warrants that each Fund is currently qualified as a "regulated investment company" under subchapter M of the Code and agrees that the Trust will use all reasonable efforts to 8 maintain such qualification (under Subchapter M or any successor or similar provision) and will notify the Companies promptly upon having a reasonable basis for believing that any Fund has ceased to so qualify or might not so qualify in the future. 8. APPLICABLE LAW 8.1 This Agreement shall be construed and the provisions hereof interpreted under and in accordance with the laws of the Commonwealth of Massachusetts without reference to the principles of conflicts or choice of law thereof. 8.2 This Agreement shall be subject to the provisions of the 1933 and 1940 Acts, the Securities Exchange Act of 1934 and the rules and regulations thereunder, including such exemptions from those statutes, rules and regulations as the SEC or its staff may grant (including, but not limited to, the Exemptive Order) and the terms hereof shall be interpreted and construed in accordance therewith. 9. TERMINATION 9.1 This Agreement may be terminated: (a) by the Trust or a Company, in its entirety or with respect to one or more Funds, for any reason or for no reason, upon 60 days' advance written notice to the other parties; or (b) by a Company, immediately upon written notice to the Trust, as to any Fund that ceases to qualify as a "regulated investment company" under Subchapter M of the Code or under any successor or similar provision, or if the Company reasonably believes that any Fund may fail to so qualify; or (c) pursuant to the provisions of Article 6 ("Potential Conflicts") hereof; or (d) at the option of the Trust upon written notice to the other parties in the event formal proceedings are instituted against a Company or Signator by the NASD, the SEC, or any insurance department or any other regulatory body that relate to the Company's duties under this Agreement or relates to the sale of the Contracts, the operation of the Accounts, or the purchase Fund shares; or (e) at the option of a Company upon written notice to the other parties in the event that formal proceedings are instituted against the Trust or its investment adviser by the NASD, the SEC, or any state securities or insurance department or any other regulatory body that relates to the Trust's duties under this Agreement or relates to the sale or holding of the Trust's shares to or by the Company's Account; or (f) by the Trust by written notice to the Companies, if the Trust shall determine, in its sole judgment exercised in good faith, that either Company has suffered a material adverse change in its business, operations, financial condition, or prospects since the date of this Agreement or is the subject of material adverse publicity; or (g) by a Company by written notice to the Trust, if the Company shall determine, in its sole judgment exercised in good faith, that the Trust or its investment adviser has suffered a material adverse change in its business, operations, financial condition or prospects since the date of this Agreement or is the subject of material adverse publicity; or (h) at the option of any party to this Agreement, by written notice to the other parties, upon another party's repeated material breach of any provision of this Agreement or isolated material breach that is not cured within a 30 day period after notice thereof; or 9 (i) automatically upon assignment by any party of this Agreement, unless made with the written consent of the other parties hereto. 9.2 The notices referred to in Section 9.1 above shall specify the Fund or Funds as to which the Agreement is to be terminated. 9.3 Notwithstanding any termination of this Agreement, the Trust will, at the option of a Company, continue to make available to the Company additional shares of each Fund pursuant to the terms and conditions of this Agreement, for all Contracts in effect on the effective date of termination of this Agreement (the "Existing Contracts"). Specifically, without limitation, the owners of the Existing Contracts shall be permitted, to the same extent as prior to the termination, to reallocate investments in the Trust, redeem investments in the Trust and/or invest in the Trust upon the making of additional purchase payments under the Existing Contracts, and all provisions of this Agreement that are germane to such transactions and the participation in Fund shares by the Existing Contracts shall remain in effect as to those Contracts. The parties agree that this Section 9.3 shall not apply to any terminations under Article 6 of this Agreement and that terminations under Article 6 shall be governed by that Article. 9.4 In the event of any termination of this Agreement as to one or more Funds pursuant to this Article 9 or pursuant to Article 6, Section 11.5 of this Agreement shall continue to survive, and termination of this Agreement as to any Fund shall not be deemed to extinguish any claim arising prior to such termination for breach of this Agreement or breach of any representation or warrantee herein. 10. NOTICES 10.1 Any notice required under this Agreement shall be sufficiently given when sent by registered or certified mail, by facsimile transmission (provided that a copy is also sent by registered or certified mail) or by a nationally recognized overnight delivery service, to the other party at the address of such party set forth below or at such other address as such party may from time to time specify in writing to the other party. If to the Trust: [John Hancock to Provide] John Hancock Variable Series Trust I John Hancock Place P.O. Box 111 Boston, MA 02117 Attention: Raymond F. Skiba Fax No.: (617) 886-3746 If to JHLICO: John Hancock Life Insurance Company John Hancock Place P.O. Box 111 Boston, MA 02117 Attention: Ronald J. Bocage Fax No.: (617) 572-9161 If to JHVLICO: John Hancock Variable Life Insurance Company John Hancock Place P.O. Box 111 Attention: Ronald J. Bocage Fax No.: (617) 572-9161 11. MISCELLANEOUS 11.1 A copy of the Agreement and Declaration of Trust establishing the Trust (as amended from time to time) is on file with the Office of the Secretary of the Commonwealth of Massachusetts, and notice is hereby given that this Agreement is executed on behalf of the Trust by officers of the Trust as officers and not individually and that the obligations of the Trust or of any Fund under or arising out of this Agreement are not binding upon any of the Trustees, officers or shareholders of the Trust individually but are binding only upon the assets and property belonging to the Trust or to a particular Fund as the case may be. 11.2 The captions in this Agreement are included for convenience of reference only and in no way define or delineate any of the provisions hereof or otherwise affect their construction or effect. 11.3 This Agreement contains the entire understanding of the parties with respect to the subject matter hereof, may be executed in two or more counterparts which together will constitute one and the same instrument, may not be assigned by a Company or the Trust without the written consent of the other, and will inure to the benefit of and be binding upon the parties and their respective successors and assigns. 11.4 If any provision of this Agreement is held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Agreement will not be affected thereby. 11.5 Each party hereto will cooperate with each other party and all appropriate governmental authorities (including without limitation the SEC, NASD and state insurance regulators) and will permit such authorities reasonable access to its books and records in connection with any investigation or inquiry relating to this Agreement or the transactions contemplated hereby. 11.6 The rights, remedies and obligations contained in this Agreement are cumulative and are in addition to any and all rights, remedies and obligations, at law or in equity, to which the parties hereto are entitled or subject under state and federal laws. 11 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in its name and on its behalf by its duly authorized representative as of the date first written above. JOHN HANCOCK LIFE INSURANCE COMPANY (on behalf of itself and its Accounts) By: __________________________ Name: Michele G. Van Leer Title: Senior Vice President JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY (on behalf of itself and its Accounts) By: __________________________ Name: Michele G. Van Leer, Title: President JOHN HANCOCK VARIABLE SERIES TRUST I By: ___________________________ Name: Kathleen F. Driscoll Title: President 12 EX-99.(17)(F) 16 dex9917f.txt FORM OF PARTICIPATION AGREEMENT PARTICIPATION AGREEMENT THIS AGREEMENT is made and entered into this ___ day of ________, 2004 by and among THE MANUFACTURERS LIFE INSURANCE COMPANY (U.S.A.), a stock life insurance company existing under the laws of Michigan ("Manulife USA"), THE MANUFACTURERS LIFE INSURANCE COMPANY OF NEW YORK, a stock life insurance company organized under the laws of New York ("Manulife New York") (Manulife USA and Manulife New York are each referred to herein as a "Company" and collectively as the "Companies"), each on behalf of itself and its variable annuity and variable life insurance separate accounts (each an "Account;" collectively, the "Accounts"), and JOHN HANCOCK VARIABLE SERIES TRUST I, a business trust organized under the laws of the Commonwealth of Massachusetts (the "Trust"). WHEREAS, the Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended (the "1933 Act"); WHEREAS, the Trust serves as an investment vehicle underlying variable life insurance and variable annuity contracts issued by the Companies (the "Contracts"); WHEREAS, the beneficial interest in the Trust is divided into separate series of shares as identified in the Trust's registration statement under the 1933 Act (as amended from time to time) (the "Funds"), each representing the interest in a particular portfolio of securities and other assets and each of which may issue multiple classes of shares; WHEREAS, the Trust operates pursuant to an order obtained from the Securities and Exchange Commission ("SEC") granting exemptions from certain provisions of and rules under the 1940 Act to the extent necessary to permit shares of the Trust to be sold to and held by, among others, variable annuity and variable life insurance separate accounts ("separate accounts") of both affiliated and unaffiliated life insurance companies ("Participating Insurance Companies") and certain qualified pension and retirement plans ("Qualified Plans") (the "Exemptive Order"); WHEREAS, each of the Companies has registered or will register its Contracts under the 1933 Act, except to the extent a particular Contract is or will be exempt from such registration; WHEREAS, each of the Companies has registered or will register each of its Accounts as a unit investment trust under the 1940 Act, except to the extent a particular Account is or will be exempt from such registration; and WHEREAS, to the extent permitted by applicable insurance laws and regulations, the Companies intend to purchase shares of the Funds on behalf of their respective Accounts to fund the Contracts, and the Trust is authorized to sell such shares to unit investment trusts such as each Account at net asset value; NOW, THEREFORE, in consideration of their mutual promises set forth herein, the Companies and the Trust agree as follows: 1. PURCHASE AND REDEMPTION OF FUND SHARES 1.1 Subject to the terms of the Distribution Agreement in effect from time to time between the Trust and Manulife Financial Securities LLC, a Delaware limited liability company ("Manulife Securities"), the Trust agrees to make shares of the Funds available for purchase by the Accounts (including the subaccounts thereof) at the applicable net asset value per share next computed, in accordance with the provisions of the then current prospectus and statement of additional information of the Trust, after receipt by the Trust or its designee of an order for purchase. The Trust agrees to use reasonable efforts to calculate such net asset value on each day on which the New York Stock Exchange is open for regular trading. Notwithstanding the foregoing, the Board of Trustees of the Trust (the "Board" or the "Trustees") may refuse to sell shares of any Fund to any person, or suspend or terminate the offering of shares of any Fund, if such action is required by law or by regulatory authorities having jurisdiction or is, in the sole discretion of the Trustees acting in good faith and in light of their fiduciary duties under federal and any applicable state laws, in the best interests of such Fund and its shareholders (including variable contract owners). 1.2 Each of the Companies shall submit payment for the purchase of shares of a Fund on behalf of an Account [ by 2:00 p.m., New York time] on the next Business Day after an order to purchase such shares is made in accordance with the provisions of Section 1.1 hereof. "Business Day" shall mean any day on which the New York Stock Exchange is open for regular trading and on which the Trust calculates the net asset value of shares of the Funds. Payment shall be in federal funds transmitted by wire to the Trust's custodian. 1.3 The Trust agrees to redeem for cash (except as otherwise provided in the Trust's prospectus) any full or fractional shares of any Fund, when requested by a Company on behalf of an Account, at the net asset value next computed, in accordance with the provisions of the then current prospectus and statement of additional information of the Trust, after receipt by the Trust or its designee of a request for redemption. The Trust shall make payment for such shares in the manner established from time to time by the Trust. Payment of redemption proceeds will normally be paid to a Company on behalf of its Account [in federal funds transmitted by wire by 2:00 p.m., New York time on the next Business Day after receipt] by the Trust or its designee of a request for redemption. 1.4 Each of the Companies agrees that all purchases and redemptions by its Accounts of shares of the Funds will be in accordance with the provisions of then current prospectus and statement of additional information of the Trust and in accordance with any procedures that the Trust, Manulife Securities or the Trust's transfer agent may establish from time to time governing purchases and redemptions of shares of the Funds generally. 1.5 Payments by a Company for the purchase of shares of the Funds by its Accounts under Section 1.2 and payments by the Trust of the proceeds of the redemption of shares of the Funds by such Accounts under Section 1.3 may be netted against one another on any Business Day for the purpose of determining the amount of any wire transfer on that Business Day. [QUERY: is netting as between Funds and classes OK with John Hancock?] 1.6 Issuance and transfer of the Trust's shares will be by book entry only. Share certificates will not be issued. Shares ordered from the Trust will be recorded on the transfer records of the Trust in an appropriate title for each Account or the appropriate subaccount of each Account. 1.7 The Trust will furnish same day notice by e-mail, fax or telephone (if by telephone, it must be followed by written confirmation) to the Companies of any income dividends or capital gain distributions payable on the shares of the Funds. Each of the Companies hereby elects to receive all such income 2 dividends and capital gain distributions as are payable on shares of a Fund in additional shares of that Fund. Each of the Companies reserves the right to revoke this election and to receive all such income dividends and capital gain distributions in cash. The Trust will notify the Companies or their designee(s) of the number of shares so issued as payment of such dividends and distributions. 1.8 The Trust will make the net asset value per share for each Fund available to the Companies on a daily basis as soon as reasonably practical after the net asset value per share is calculated and shall use its best efforts to make such net asset value per share available by [7:00] p.m. New York time. 1.9 For purposes of this Article 1, each of the Companies shall be the designee of the Trust for receipt of purchase orders and requests for redemption relating to the Funds from each of its Accounts that result from final orders or requests from Contract holders or that otherwise result automatically from the operation of the Contracts, and receipt by a Company will constitute receipt by the Trust, provided that the Trust receives notice of a purchase order or request for redemption by [10:00] am New York time on the next following Business Day. Neither Company shall be a designee of the Trust pursuant to this Section 1.9 with respect to any orders for purchase or redemption of Fund shares that do not result from orders or requests from Contract owners, or that do not otherwise result automatically from the operation of the Contracts. Specifically, and without limitation, neither Company shall be such a designee with respect to (1) any contribution of assets to an Account or withdrawal of assets from the Account that does not result from Contract holder orders or requests, unless such transactions are in accordance with established administrative practices of the Company for regularly contributing or withdrawing assets from the Account, or (2) any transfer between Funds of the Trust of assets that are not being held to support Contracts. Each Company agrees to communicate separately to the Trust or its designee any Account orders for purchase or redemption of Fund shares as to which it is not entitled to act as the Trust's designee and that such orders will be effected at the net asset value per share next computed, in accordance with the provisions of the then current prospectus and statement of additional information of the Trust, after receipt thereof by the Trust or its designee. Neither Company shall permit any Contract owner to revoke any previously placed order or request once the time for computing the next applicable Fund share net asset value has passed. 1.10 The Trust agrees that shares of the Funds will be sold only to (a) Participating Insurance Companies to be held in "segregated asset accounts" within the meaning of Treas. Reg. Section 1.817-5(e) through which public access to the Fund is available only pursuant "variable contracts," within the meaning of Section 817(d) of the Code, (b) Qualified Plans, and (c) other purchasers of the kind specified in Treas. Reg. Section 1.817-5(f)(3) (or any successor regulation) ("Other Purchasers") as from time to time in effect; and the Companies agree not to sell or transfer an Account's shares in a Fund to any other person without the Trust's written consent. 1.12 Each Company agrees to provide to the Trust such information as the Trust may from time to time reasonably request to evaluate whether any holders of that Company's Contracts may be engaging in "market timing" or other frequent transfer activity that may be contrary to the interests of other participants in a Fund. 1.11 Each of the Companies has received a copy of the Exemptive Order and agrees to perform the obligations of a Participating Insurance Company under such Order. 2. PROSPECTUSES AND PROXY STATEMENTS; VOTING 2.1 The Trust will prepare and be responsible for filing with the SEC and any state regulatory authorities requiring such filing all shareholder reports, proxy materials and prospectuses and statements of additional information of the Trust. The Trust will bear the costs of registration and qualification of 3 the shares of the Funds, preparation and filing of the documents listed in this Section 2.1, and all taxes to which an issuer is subject on the issuance and transfer of its shares. 2.2 At the option of each of the Companies, the Trust will either (a) provide the Company with as many copies of the Trust's current prospectus, statement of additional information, annual report, semi-annual report, proxy materials and other shareholder communications, including any amendments or supplements to any of the foregoing, as the Company may reasonably request; or (b) provide the Company with camera ready copies of such documents in a form suitable for printing. Subject to Section 4.1 hereof, (i) expenses of furnishing such documents for marketing purposes will be borne by the Companies, (ii) expenses of furnishing prospectuses and prospectus supplements to current Contract owners will be borne by the Companies, and (iii) expenses of furnishing documents referred to in clause (a) above (other than prospectuses and supplements thereto) to current Contract owners will be borne by the Trust. The Companies assume sole responsibility for ensuring that the Trust's proxy materials are delivered to Contract owners in accordance with applicable federal and state securities laws. 2.3 The Trust will use its best efforts to provide the Companies, on a timely basis, with such information about the Trust, the Funds and the investment adviser and any subadvisers to any Fund, as the Companies may reasonably request in connection with the preparation of registration statements, prospectuses and other materials relating to the Contracts. 2.4 As long as and to the extent that the SEC interprets the 1940 Act to require pass-through voting privileges for variable contract owners, each of the Companies (i) will provide pass-through voting privileges to Contract owners whose Contract values are invested, through Accounts registered with the SEC under the 1940 Act, in shares of the Funds, (ii) may, to the extent it deems appropriate, provide pass-through voting privileges to Contract owners whose contract values are invested, through Accounts which are not so registered with the SEC, in shares of the Funds, (iii) when it provides pass-through voting privileges to Contract owners whose Contract values are invested through an Account in shares of a Fund, will vote shares held in that Account for which no Contract owner instructions are timely received by the Company in the same proportion as those shares of the Fund held in that Account for which Contract owner instructions are timely received, and (iii) will vote shares of a Fund which it is otherwise entitled to vote on any matter in the same proportion as the voting instructions which it has timely received from Contract owners with respect to that matter. Notwithstanding the foregoing, each of the Companies may vote shares of a Fund in such other manner as may be required or permitted by Rule 6e-2 or Rule 6e-3(T) under the 1940 Act or otherwise by the SEC or its staff. 3. SALES MATERIAL AND INFORMATION 3.1 Each of the Companies will use its best efforts to ensure that sales literature and other promotional material prepared by it or on its behalf in which the Trust, a Fund, any investment adviser or subadviser to any Fund or Manulife Securities (in its capacity as distributor of the Trust shares) is named, conforms to all requirements of all applicable federal and state laws and rules and regulations, including all applicable rules and regulations of the National Association of Securities Dealers, Inc. (the "NASD"). 3.2 Neither of the Companies will give any information or make any representations or statements on behalf of the Trust or concerning the Trust in connection with the sale of the Contracts other than the information or representations contained in the registration statement, prospectus or statement of additional information for the Trust shares, as such registration statement, prospectus and statement of additional information may be amended or supplemented from time to time, or in reports or proxy statements for the Trust, or in sales literature or other promotional material approved in writing by the Trust or its designee, except with the written approval of the Trust or its designee. 4 3.3 The Trust will use its best efforts to ensure that sales literature and other promotional material prepared by it or on its behalf in which a Company, the Accounts or the Contracts are named, conforms to all requirements of all applicable federal and state laws and rules and regulations, including all applicable rules and regulations of the NASD. 3.4 The Trust will not give any information or make any representations or statements on behalf of or concerning the Companies, the Accounts or the Contracts in connection with the sale of Trust shares other than the information or representations contained in the registration statements, prospectuses or statements of additional information for the Contracts, as such registration statements, prospectuses and statements of additional information may be amended or supplemented from time to time, or in published reports for each Account which are in the public domain or approved by a Company for distribution to Contract owners, or in sales literature or promotional material approved in writing by a Company or its designee, except with the written permission of the Company or its designee. 3.5 The Trust will provide to each of the Companies at least one complete copy of all registration statements, prospectuses, statements of additional information, shareholder annual, semi-annual and other reports, proxy statements, applications for exemptions, requests for no-action letters and any amendments to any of the foregoing, that relate to the Trust or any Fund promptly after the filing of each such document with the SEC or any other regulatory authority. 3.6 Each of the Companies will provide to the Trust at least one complete copy of all registration statements, prospectuses, statements of additional information, shareholder annual, semi-annual and other reports, solicitations for voting instructions, applications for exemptions, requests for no-action letters and any amendments to any of the foregoing, that relate to its Contracts or any of its Accounts promptly after the filing of each such document with the SEC or any other regulatory authority. 3.7 Each party hereto will provide to each other party, to the extent it is relevant to the Contracts or the Trust, a copy of any comment letter received from the staff of the SEC or the NASD, and such party's response thereto, following any examination or inspection by the staff of the SEC or the NASD. 3.8 As used herein, the phrase "sales literature and other promotional material" includes, but is not limited to, advertisements (such as material published or designed for use in a newspaper, magazine, or other periodical, radio, television, telephone or tape recording, videotape display, sign or billboard, motion picture or other public medium), sales literature (i.e., any written communication distributed or made generally available to customers or the public, including brochures, circulars, research reports, market letters, form letters, seminar texts, reprints or excerpts of any other advertisement, sales literature or published article), educational or training materials or other communications distributed or made generally available to some or all agents or employees. 4. FEES AND EXPENSES 4.1 The Trust will pay no fee or other compensation to the Companies under this Agreement. If the Trust or any Fund (or any class of shares thereof) adopts and implements a plan pursuant to Rule 12b-1 under the 1940 Act to finance distribution and other expenses, then, as a principal underwriter of the Trust, Manulife Securities, or an affiliate thereof, may make payments to the Companies to the extent consistent with applicable laws, regulations and rules and such plan. 5. DIVERSIFICATION 5.1 The Trust and each of the Funds will at all times use all reasonable efforts comply with Section 817(h)(1) of the Internal Revenue Code of 1986, as amended (the "Code"), and Treas. Reg. 1.817-5, as 5 they may be amended from time to time (and any revenue rulings, revenue procedures, notices, and other published announcements of the Internal Revenue Service interpreting these sections), as if those requirements applied directly to each such Portfolio relating to the diversification requirements for variable annuity, endowment or life insurance contracts. In addition, neither the Trust nor the Funds will knowingly take any action, or fail to take any action, that results in the inability of any Account investing in the Funds to treat a portion of each asset of a Fund as an asset of the Account, in accordance with Treas. Reg. Section 1.817-5(f), for purposes of satisfying the diversification requirements of Section 817(h)(1) of the Code and the Treasury Regulations hereunder. 6. POTENTIAL CONFLICTS 6.1 To the extent required by the Exemptive Order or by applicable law, the Board will monitor the Trust for the existence of any material irreconcilable conflict between or among the interests of variable contract owners whose contract values are invested through separate accounts, participants in Qualified Plans and Other Purchasers investing in the Trust and will determine what action, if any, should be taken in response to any such conflict. A material irreconcilable conflict may arise for a variety of reasons, including: (a) an action by any state insurance regulatory authority; (b) a change in applicable federal or state insurance, tax, or securities laws or regulations, or a public ruling, private letter ruling, no-action or interpretative letter, or any similar action by insurance, tax, or securities regulatory authorities; (c) an administrative or judicial decision in any relevant proceeding; (d) the manner in which the investments of any Fund are being managed; (e) a difference in voting instructions given by variable annuity contract owners, variable life insurance contract owners and, where applicable, participants in Qualified Plans; (f) a decision by a Participating Insurance Company to disregard the voting instructions of variable contract owners; or (g) a decision by a Qualified Plan, where applicable, to disregard participant voting instructions. The Trust will promptly inform the Companies if it determines that a material irreconcilable conflict exists and of the implications thereof. 6.2 Each of the Companies, on behalf of itself, its Accounts and any of its affiliates investing in a Fund, will report to the Board any potential or existing conflict as described in Section 6.1 of which it is or becomes aware. Each Company will assist the Board in carrying out its responsibilities under the Exemptive Order and under applicable law by providing the Board with all information reasonably necessary for the Board to consider any issues raised with respect to such conflict and by furnishing to the Board, at its reasonable request annually or more frequently, such other materials or reports as the Board may deem appropriate. Each of the Companies will inform the Board whenever it determines to disregard Contract owner voting instructions, and each of the Companies will carry out this and all of its other responsibilities under this Article 6 with a view only to the interests of its Contract owners. 6.3 If it is determined by a majority of the Board, or a majority of the disinterested Trustees, that a material irreconcilable conflict exists with respect to any Fund, each of the Companies, as applicable, shall, at its own expense, and to the extent reasonably practical (as determined by a majority of the Trust's disinterested Trustees), take whatever steps are necessary to remedy or eliminate the material irreconcilable conflict, up to and including: (1) withdrawing the assets allocable to some or all of its Accounts from the Trust or any Fund and reinvesting such assets in a different investment medium, including (but not limited to) another Fund, or submitting the question of whether such segregation should be implemented to a vote of all affected Contract owners and, as appropriate, segregating the assets of any appropriate group (i.e., variable annuity contract owners, variable life insurance contract owners or Contract owners of one or both Companies) that votes in favor of such segregation, or offering to the affected Contract owners the option of making such a change; and (2) establishing a new registered management investment company. 6 6.4 If a material irreconcilable conflict arises because of a decision by a Company to disregard Contract owner voting instructions and that decision represents a minority position or would preclude a majority vote, the Company may be required, at the Trust's election, to withdraw the relevant Account's investment in the Trust or a Fund, as applicable. No charge or penalty will be imposed as a result of any such withdrawal. 6.5 For purposes of Sections 6.3 and 6.4 of this Agreement, a majority of the Trustees who are not "interested persons" (as defined in Section 2(a)(19) of the 1940 Act) of the Trust will determine whether any proposed action adequately remedies any material irreconcilable conflict, but in no event will the Trust or any investment adviser to the Trust be required to establish a new funding medium for the Contracts. Nor shall a Company be required by Section 6.3 to establish any new funding medium for the Contracts if an offer to do so has been declined by vote of a majority of Contract owners materially adversely affected by the material irreconcilable conflict. 6.6 If and to the extent that Rule 6e-2 and Rule 6e-3(T) under the 1940 Act are amended, or proposed Rule 6e-3 is adopted, to provide exemptive relief from any provision of the Act or the rules promulgated thereunder with respect to "mixed or shared funding" (as understood for purposes of the Exemptive Order) on terms and conditions materially different from those contained in the Exemptive Order, then (a) the Trust and/or the Companies as well as the other Participating Insurance Companies, as appropriate, will take such steps as may be necessary to comply with Rules 6e-2 and 6e-3(T), as amended, and Rule 6e-3, as adopted, to the extent such rules are applicable; and (b) Sections 2.4, 6.1, 6.2, 6.3 and 6.4 of this Agreement shall continue in effect only to the extent that terms and conditions substantially identical to such Sections are contained in such Rule(s) as so amended or adopted. 6.7. The Trust hereby notifies the Companies that it may be appropriate to include in prospectuses for the Contracts disclosure regarding potential conflicts as described in Section 6.1 hereof. 7. REPRESENTATIONS AND WARRANTIES 7.1 Representations and Warranties of the Companies. (a) Each of the Companies represents and warrants that it is a life insurance company duly organized or existing and in good standing under applicable law and that each of its Accounts, prior to any issuance or sale of any Contracts by such Account and during the term of this Agreement, will be legally and validly established as a separate account pursuant to relevant state insurance law and either: (i) will be registered as a unit investment trust in accordance with the provisions of the 1940 Act; or (ii) will be exempt from such registration. (b) Each of the Companies represents and warrants that the Contracts issued by it are or, prior to the purchase of shares of any Fund in connection with funding such Contracts, will be registered under the 1933 Act, except to the extent a particular Contract is exempt from such registration, and will be issued and sold in compliance in all material respects with all applicable federal and state laws, including all applicable customer suitability requirements. (c) Each of the Companies represents and warrants that its registration statements for the Contracts and any amendments or supplement thereto will, when they become effective, conform in all material respects to the requirements of the 1933 Act and the 1940 Act and the rules and regulations of the SEC thereunder and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, provided, however, that this representation and warranty will not apply to any statements or omissions made in 7 reliance upon and in conformity with information furnished in writing to the Company by or on behalf of the Trust expressly for use therein. (d) Each of the Companies represents and warrants that its Contracts are currently and at the time of issuance will be treated as modified endowment, annuity or life insurance contracts under applicable provisions of the Code and agrees that it will make all reasonable efforts to maintain such treatment and will notify the Trust immediately upon having a reasonable basis for believing that its Contracts or any of them have ceased to be so treated or might not be so treated in the future. (e) Each of the Companies represents and warrants that each Account of that Company in which Fund shares are held will be, at the time such shares are acquired, a "segregated asset account" within the meaning of Treas. Reg. Section 1.817-5(e) and agrees that it will make all reasonable efforts to maintain the Account's status as such and will notify the Trust immediately upon having a reasonable basis for believing that one or more of its Accounts holding Fund shares no longer have that status or might not have that status in the future. (f) Each of the Companies represents and warrants that it will not, without the prior written consent of the Trust, purchase shares of the Trust with Account assets derived from the sale of Contracts to individuals or entities which would cause the investment policies of any Fund to be subject to any limitations not in the Trust's then current prospectus or statement of additional information with respect to any Fund. 7.2 Representations and Warranties of the Trust (a) The Trust represents and warrants that it is lawfully organized and validly existing under the laws of the Commonwealth of Massachusetts and that it does and will at all times during the term of this Agreement comply in all material respects with the 1940 Act. (b) The Trust represents and warrants that shares of the Funds offered and sold pursuant to this Agreement will be registered under the 1933 Act, duly authorized for issuance and sold in compliance with the laws of the Commonwealth of Massachusetts and all applicable federal and state securities laws and that the Trust is and will remain during the term of this Agreement registered as an open-end management investment company under the 1940 Act. The Trust agrees that it will amend the registration statement for its shares under the 1933 Act and the 1940 Act from time to time as required in order to permit the continuous offering of its shares in accordance with the 1933 Act. The Trust will register and qualify the shares for sale in accordance with the laws of the various states only if and to the extent deemed advisable by the Trust or Manulife Securities. (c) The Trust represents and warrants that the registration statement for shares of the Funds and any amendments or supplement thereto will, when they become effective, conform in all material respects to the requirements of the 1933 Act and the 1940 Act and the rules and regulations of the SEC thereunder and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, provided, however, that this representation and warranty will not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Trust by or on behalf of a Company expressly for use therein. (d) The Trust represents and warrants that each Fund is currently qualified as a "regulated investment company" under subchapter M of the Code and agrees that the Trust will use all reasonable efforts to maintain such qualification (under Subchapter M or any successor or similar provision) and will 8 notify the Companies promptly upon having a reasonable basis for believing that any Fund has ceased to so qualify or might not so qualify in the future. 8. APPLICABLE LAW 8.1 This Agreement shall be construed and the provisions hereof interpreted under and in accordance with the laws of the Commonwealth of Massachusetts without reference to the principles of conflicts or choice of law thereof. 8.2 This Agreement shall be subject to the provisions of the 1933, 1934 and 1940 Acts, and the rules and regulations thereunder, including such exemptions from those statutes, rules and regulations as the SEC or its staff may grant (including, but not limited to, the Exemptive Order) and the terms hereof shall be interpreted and construed in accordance therewith. 9. TERMINATION 9.1 This Agreement may be terminated: (a) by the Trust or a Company, in its entirety or with respect to one or more Funds, for any reason or for no reason, upon 60 days' advance written notice to the other parties; or (b) by a Company, immediately upon written notice to the Trust, as to any Fund that ceases to qualify as a "regulated investment company" under Subchapter M of the Code or under any successor or similar provision, or if the Company reasonably believes that any Fund may fail to so qualify; or (c) pursuant to the provisions of Article 6 ("Potential Conflicts") hereof; or (d) at the option of the Trust upon written notice to the other parties in the event formal proceedings are instituted against a Company or Manulife Securities by the NASD, the SEC, or any insurance department or any other regulatory body that relate to the Company's duties under this Agreement or relates to the sale of the Contracts, the operation of the Accounts, or the purchase Fund shares; or (e) at the option of a Company upon written notice to the other parties in the event that formal proceedings are instituted against the Trust or its investment adviser by the NASD, the SEC, or any state securities or insurance department or any other regulatory body that relates to the Trust's duties under this Agreement or relates to the sale or holding of the Trust's shares to or by the Company's Account; or (f) by the Trust by written notice to the Companies, if the Trust shall determine, in its sole judgment exercised in good faith, that either Company has suffered a material adverse change in its business, operations, financial condition, or prospects since the date of this Agreement or is the subject of material adverse publicity; or (g) by a Company by written notice to the Trust, if the Company shall determine, in its sole judgment exercised in good faith, that the Trust or its investment adviser has suffered a material adverse change in its business, operations, financial condition or prospects since the date of this Agreement or is the subject of material adverse publicity; or (h) at the option of any party to this Agreement, by written notice to the other parties, upon another party's repeated material breach of any provision of this Agreement or isolated material breach that is not cured within a 30 day period after notice thereof; or 9 (i) automatically upon assignment by any party of this Agreement, unless made with the written consent of the other parties hereto. 9.2 The notices referred to in Section 9.1 above shall specify the Fund or Funds as to which the Agreement is to be terminated. 9.3 Notwithstanding any termination of this Agreement, the Trust will, at the option of a Company, continue to make available to the Company additional shares of each Fund pursuant to the terms and conditions of this Agreement, for all Contracts in effect on the effective date of termination of this Agreement (the "Existing Contracts"). Specifically, without limitation, the owners of the Existing Contracts shall be permitted, to the same extent as prior to the termination, to reallocate investments in the Trust, redeem investments in the Trust and/or invest in the Trust upon the making of additional purchase payments under the Existing Contracts, and all provisions of this Agreement that are germane to such transactions and the participation in Fund shares by the Existing Contracts shall remain in effect as to those Contracts. The parties agree that this Section 9.3 shall not apply to any terminations under Article 6 of this Agreement and that terminations under Article 6 shall be governed by that Article. 9.4 In the event of any termination of this Agreement as to one or more Funds pursuant to this Article 9 or pursuant to Article 6, Section 11.5 of this Agreement shall continue to survive, and termination of this Agreement as to any Fund shall not be deemed to extinguish any claim arising prior to such termination for breach of this Agreement or breach of any representation or warrantee herein. 10. NOTICES 10.1 Any notice required under this Agreement shall be sufficiently given when sent by registered or certified mail, by facsimile transmission (provided that a copy is also sent by registered or certified mail) or by a nationally recognized overnight delivery service, to the other party at the address of such party set forth below or at such other address as such party may from time to time specify in writing to the other party. If to the Trust: [John Hancock to Provide] If to Manulife USA: The Manufacturers Life Insurance Company (U.S.A.) 73 Tremont Street Boston, Massachusetts 02108 Attention: James D. Gallagher Fax No.: (617) 854-8685 If to Manulife New York: The Manufacturers Life Insurance Company of New York 73 Tremont Street Boston, Massachusetts 02108 Attention: James D. Gallagher Fax No.: (617) 854-8685 10 11. MISCELLANEOUS 11.1 A copy of the Agreement and Declaration of Trust establishing the Trust (as amended from time to time) is on file with the Office of the Secretary of the Commonwealth of Massachusetts, and notice is hereby given that this Agreement is executed on behalf of the Trust by officers of the Trust as officers and not individually and that the obligations of the Trust or of any Fund under or arising out of this Agreement are not binding upon any of the Trustees, officers or shareholders of the Trust individually but are binding only upon the assets and property belonging to the Trust or to a particular Fund as the case may be. 11.2 The captions in this Agreement are included for convenience of reference only and in no way define or delineate any of the provisions hereof or otherwise affect their construction or effect. 11.3 This Agreement contains the entire understanding of the parties with respect to the subject matter hereof, may be executed in two or more counterparts which together will constitute one and the same instrument, may not be assigned by a Company or the Trust without the written consent of the other, and will inure to the benefit of and be binding upon the parties and their respective successors and assigns. 11.4 If any provision of this Agreement is held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Agreement will not be affected thereby. 11.5 Each party hereto will cooperate with each other party and all appropriate governmental authorities (including without limitation the SEC, NASD and state insurance regulators) and will permit such authorities reasonable access to its books and records in connection with any investigation or inquiry relating to this Agreement or the transactions contemplated hereby. 11.6 The rights, remedies and obligations contained in this Agreement are cumulative and are in addition to any and all rights, remedies and obligations, at law or in equity, to which the parties hereto are entitled or subject under state and federal laws. 11 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in its name and on its behalf by its duly authorized representative as of the date first written above. THE MANUFACTURERS LIFE INSURANCE COMPANY (U.S.A.) (on behalf of itself and its Accounts) By: __________________________ Name: James D. Gallagher Title: Executive Vice President, Secretary And General Counsel THE MANUFACTURERS LIFE INSURANCE COMPANY OF NEW YORK (on behalf of itself and its Accounts) By: __________________________ Name: James D. Gallagher, Title: President JOHN HANCOCK VARIABLE SERIES TRUST I By: ___________________________ Name: Title: 12 -----END PRIVACY-ENHANCED MESSAGE-----