N-Q 1 nq093016.htm N-Q Advance Capital I, Inc.


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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549


FORM N-Q


QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY


Investment Company Act file number: 811-05127


Advance Capital I, Inc.

(Exact name of registrant as specified in charter)


One Towne Square, Suite 444

 

Southfield, Michigan  48076

(Address of principal executive offices)

 

(Zip code)


Christopher M. Kostiz

One Towne Square, Suite 444

Southfield, Michigan  48076

(Name and address of agent for service)


Registrant’s telephone number, including area code:   (248) 350-8543


Date of fiscal year end:   December 31


Date of reporting period:   September 30, 2016


Form N-Q is to be used by management investment companies, other than small business investment companies registered on From N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5).  The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.


A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.





Item 1.  Schedule of Investments


ADVANCE CAPITAL I - EQUITY GROWTH FUND

PORTFOLIO OF INVESTMENTS (UNAUDITED)

SEPTEMBER 30, 2016


Common Stock

 

 

 

 

 

and Short-Term Investments

 

Shares

 

Value

 

 

 

 

 

 

BASIC MATERIALS - 4.5%

 

 

 

 

 

Celanese Corp.

 

1,400

 

$

93,184

Eastman Chemical Co.

 

1,400

 

 

94,752

International Flavors

 

2,600

 

 

371,722

Minerals Technologies, Inc.

 

1,600

 

 

113,104

PolyOne Corp.

 

2,600

 

 

87,906

Sherwin-Williams Co.

 

1,000

 

 

276,660

Westlake Chemical Corp.

 

2,700

 

 

144,450

WR Grace & Co.

 

1,500

 

 

110,700

 

 

 

 

 

 

COMMUNICATIONS - 4.0%

 

 

 

 

 

Ciena Corp.*

 

7,700

 

 

167,860

EchoStar Corp.*

 

3,600

 

 

157,788

John Wiley & Sons, Inc.

 

10,200

 

 

526,422

Juniper Networks, Inc.

 

6,300

 

 

151,578

NeuStar, Inc.*

 

6,000

 

 

159,540

 

 

 

 

 

 

CONSUMER, CYCLICAL - 15.6%

 

 

 

 

 

Advance Auto Parts, Inc.

 

2,500

 

 

372,800

Alaska Air Group, Inc.

 

1,800

 

 

118,548

BorgWarner, Inc.

 

4,300

 

 

151,274

Genuine Parts Co.

 

4,000

 

 

401,800

Hasbro, Inc.

 

5,300

 

 

420,449

JetBlue Airways Corp.*

 

6,500

 

 

112,060

Lear Corp.

 

1,200

 

 

145,464

Mattel, Inc.

 

13,600

 

 

411,604

Michael Kors Holdings Ltd*

 

2,500

 

 

116,975

Pool Corp.

 

4,600

 

 

434,792

PVH Corp.

 

1,300

 

 

143,650

Spirit Airlines, Inc.*

 

2,400

 

 

102,072

Tiffany & Co.

 

9,100

 

 

660,933

VF Corp.

 

8,800

 

 

493,240

Whirlpool Corp.

 

900

 

 

145,944

Williams-Sonoma, Inc.

 

3,000

 

 

153,240

Wyndham Worldwide Corp.

 

2,200

 

 

148,126

 

 

 

 

 

 

CONSUMER, NON-CYCLICAL - 22.0%

 

 

 

 

 

Aaron's, Inc.

 

19,000

 

 

482,980

AMERCO*

 

200

 

 

64,846

Amsurg Corp.*

 

2,600

 

 

174,330

Aramark

 

3,700

 

 

140,711

CR Bard, Inc.

 

2,600

 

 

583,128

DENTSPLY SIRONA, Inc.

 

11,000

 

 

653,730

Ecolab, Inc.

 

2,600

 

 

316,472

Envision Healthcare Holdings*

 

7,800

 

 

173,706

Flowers Foods, Inc.

 

35,600

 

 

538,272

Global Payments, Inc.

 

6,800

 

 

521,968

Hershey Co.

 

6,000

 

 

573,600

Hormel Foods Corp.

 

17,800

 

 

675,154

LifePoint Health, Inc.*

 

2,900

 

 

171,767

Molina Healthcare, Inc.*

 

3,900

 

 

227,448

Quanta Services, Inc.*

 

4,600

 

 

128,754

Sprouts Farmers Market, Inc.*

 

8,200

 

 

169,330

Sysco Corp.

 

16,200

 

 

793,962





ENERGY - 0.8%

 

 

 

 

 

FMC Technologies, Inc.*

 

7,400

 

 

219,558

 

 

 

 

 

 

FINANCIAL - 13.4%

 

 

 

 

 

Alliance Data Systems Corp.

 

700

 

 

150,171

Ally Financial, Inc.

 

12,300

 

 

239,481

Ameriprise Financial, Inc.

 

2,200

 

 

219,494

AmTrust Financial Services, Inc.

 

7,800

 

 

209,274

Assured Guaranty Ltd

 

7,800

 

 

216,450

CBRE Group, Inc.*

 

7,800

 

 

218,244

CIT Group, Inc.

 

6,400

 

 

232,320

East West Bancorp, Inc.

 

6,100

 

 

223,931

Huntington Bancshares, Inc.

 

23,000

 

 

226,780

Invesco Ltd

 

7,800

 

 

243,906

Jones Lang LaSalle, Inc.

 

2,100

 

 

238,959

KeyCorp.

 

18,000

 

 

219,060

Navient Corp.

 

16,400

 

 

237,308

NorthStar Realty Finance

 

17,700

 

 

233,109

Popular, Inc.

 

6,900

 

 

263,718

Synchrony Financial

 

7,600

 

 

212,800

Voya Financial, Inc.

 

10,300

 

 

296,846

 

 

 

 

 

 

INDUSTRIAL - 16.0%

 

 

 

 

 

Acuity Brands, Inc.

 

1,500

 

 

396,900

AptarGroup, Inc.

 

4,000

 

 

309,640

CH Robinson Worldwide, Inc.

 

5,000

 

 

352,300

CLARCOR, Inc.

 

6,200

 

 

403,000

Dover Corp.

 

5,500

 

 

405,020

EMCOR Group, Inc.

 

2,200

 

 

131,164

Expeditors International

 

7,600

 

 

391,552

Genesee & Wyoming, Inc.*

 

1,800

 

 

124,110

Graphic Packaging Holding Co.

 

7,300

 

 

102,127

Harris Corp.

 

1,700

 

 

155,737

Hubbell, Inc.

 

3,600

 

 

387,864

JB Hunt Transport Services

 

1,300

 

 

105,456

Lennox International, Inc.

 

2,600

 

 

408,278

Lincoln Electric Holdings, Inc.

 

6,500

 

 

407,030

MSA Safety, Inc.

 

7,300

 

 

423,692

Ryder System, Inc.

 

1,800

 

 

118,710

 

 

 

 

 

 

TECHNOLOGY - 10.7%

 

 

 

 

 

Analog Devices, Inc.

 

8,900

 

 

573,605

Convergys Corp.

 

5,400

 

 

164,268

Fair Isaac Corp.

 

4,300

 

 

535,737

Lam Research Corp.

 

1,700

 

 

161,058

ON Semiconductor Corp.*

 

16,500

 

 

203,280

Rackspace Hosting, Inc.*

 

6,800

 

 

215,492

Synaptics, Inc.*

 

2,900

 

 

169,882

Teradyne, Inc.

 

8,900

 

 

192,062

VeriFone Systems Inc.*

 

9,500

 

 

149,530

Xilinx, Inc.

 

13,500

 

 

733,590

 

 

 

 

 

 

UTILITIES - 2.2%

 

 

 

 

 

UGI Corp.

 

13,900

 

 

628,836

 

 

 

 

 

 

TOTAL COMMON STOCK - 89.2%

 

 

 

 

 

(Cost $23,988,554)

 

 

 

 

25,830,124





SHORT-TERM INVESTMENTS - 10.7%

 

 

 

 

 

Federated Treasury Obligations Fund, 0.18% Yield^

 

 

 

 

 

(Cost $3,106,410)

 

3,106,410

 

 

3,106,410

 

 

 

 

 

 

TOTAL INVESTMENTS IN SECURITIES - 99.9%

 

 

 

 

 

(Cost $27,094,964)

 

 

 

 

28,936,534

 

 

 

 

 

 

OTHER ASSETS LESS LIABILITIES - 0.1%

 

 

 

 

29,373

 

 

 

 

 

 

TOTAL NET ASSETS - 100.0%

 

 

 

$

28,965,907



* Securities are non-income producing


^ Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.


See Notes to Financial Statements














ADVANCE CAPITAL I - BALANCED FUND

PORTFOLIO OF INVESTMENTS (UNAUDITED)

SEPTEMBER 30, 2016


Common Stock

 

Shares

 

Value

 

 

 

 

 

 

BASIC MATERIALS - 2.3%

 

 

 

 

 

Eastman Chemical Co.

 

2,500

 

$

169,200

International Flavors

 

1,800

 

 

257,346

LyondellBasell Industries

 

2,200

 

 

177,452

Monsanto Co.

 

2,400

 

 

245,280

Sherwin-Williams Co.

 

800

 

 

221,328

 

 

 

 

 

 

COMMUNICATIONS - 1.8%

 

 

 

 

 

eBay, Inc.*

 

14,000

 

 

460,600

Juniper Networks, Inc.

 

15,100

 

 

363,306

 

 

 

 

 

 

CONSUMER, CYCLICAL - 13.7%

 

 

 

 

 

Advance Auto Parts, Inc.

 

1,800

 

 

268,416

Alaska Air Group, Inc.

 

3,600

 

 

237,096

CVS Health Corp.

 

2,500

 

 

222,475

Delta Air Lines, Inc.

 

6,900

 

 

271,584

Genuine Parts Co.

 

4,400

 

 

441,980

Hasbro, Inc.

 

5,200

 

 

412,516

Home Depot, Inc.

 

3,400

 

 

437,512

Lear Corp.

 

3,000

 

 

363,660

Mattel, Inc.

 

13,900

 

 

420,684

McDonald's Corp.

 

3,700

 

 

426,832

Michael Kors Holdings Ltd*

 

6,200

 

 

290,098

NIKE, Inc.

 

7,900

 

 

415,935

Southwest Airlines Co.

 

8,400

 

 

326,676

VF Corp.

 

7,200

 

 

403,560

Walgreens Boots Alliance

 

4,100

 

 

330,542

Wal-Mart Stores, Inc.

 

6,700

 

 

483,204

Whirlpool Corp.

 

1,800

 

 

291,888

Wyndham Worldwide Corp.

 

4,400

 

 

296,252

 

 

 

 

 

 

CONSUMER, NON-CYCLICAL - 16.3%

 

 

 

 

 

Abbott Laboratories

 

8,800

 

 

372,152

Aetna, Inc.

 

2,100

 

 

242,445

AMERCO*

 

700

 

 

226,961

Anthem, Inc.

 

1,900

 

 

238,089

Becton Dickinson and Co.

 

2,100

 

 

377,433

Cardinal Health, Inc.

 

3,200

 

 

248,640

Cigna Corp.

 

1,900

 

 

247,608

Coca-Cola Co.

 

8,100

 

 

342,792

CR Bard, Inc.

 

1,500

 

 

336,420

DENTSPLY SIRONA, Inc.

 

5,800

 

 

344,694

Ecolab, Inc.

 

2,000

 

 

243,440

General Mills, Inc.

 

6,800

 

 

434,384

Global Payments, Inc.

 

6,800

 

 

521,968

Hershey Co.

 

4,500

 

 

430,200

Hormel Foods Corp.

 

13,300

 

 

504,469

Johnson & Johnson

 

3,900

 

 

460,707

Medtronic PLC

 

5,500

 

 

475,200

PepsiCo., Inc.

 

4,600

 

 

500,342

Procter & Gamble Co.

 

5,800

 

 

520,550

Sysco Corp.

 

9,600

 

 

470,496

 

 

 

 

 

 

ENERGY - 0.7%

 

 

 

 

 

Valero Energy Corp.

 

6,300

 

 

333,900





FINANCIAL - 4.5%

 

 

 

 

 

Affiliated Managers Group, Inc.*

 

1,900

 

 

274,930

Alliance Data Systems Corp.

 

1,300

 

 

278,889

American Express Co.

 

4,100

 

 

262,564

Berkshire Hathaway, Inc.*

 

1,800

 

 

260,046

Discover Financial Services

 

4,600

 

 

260,130

Synchrony Financial

 

13,000

 

 

364,000

Unum Group

 

10,800

 

 

381,348

 

 

 

 

 

 

INDUSTRIAL - 8.1%

 

 

 

 

 

3M Co.

 

2,000

 

 

352,460

Acuity Brands, Inc.

 

1,300

 

 

343,980

CH Robinson Worldwide, Inc.

 

5,000

 

 

352,300

Dover Corp.

 

7,000

 

 

515,480

Emerson Electric Co.

 

9,400

 

 

512,394

Expeditors International

 

9,900

 

 

510,048

FedEx Corp.

 

2,200

 

 

384,296

Illinois Tool Works, Inc.

 

4,600

 

 

551,264

WestRock Co.

 

4,400

 

 

213,312

 

 

 

 

 

 

TECHNOLOGY - 4.0%

 

 

 

 

 

Analog Devices, Inc.

 

6,600

 

 

425,370

Apple, Inc.

 

2,500

 

 

282,425

Intel Corp.

 

14,600

 

 

551,004

Xilinx, Inc.

 

10,700

 

 

581,438

 

 

 

 

 

 

UTILITIES - 1.1%

 

 

 

 

 

UGI Corp.

 

10,900

 

 

493,116

 

 

 

 

 

 

TOTAL COMMON STOCK - 52.5%

 

 

 

 

 

(Cost $22,885,683)

 

 

 

$

24,259,106



* Securities are non-income producing


See Notes to Financial Statements
















ADVANCE CAPITAL I - BALANCED FUND

PORTFOLIO OF INVESTMENTS (UNAUDITED)

SEPTEMBER 30, 2016


Fixed Income Securities

 

 

 

 

 

Principal

 

 

 

and Short-Term Investments

 

Coupon

 

Maturity

 

Amount

 

 

Value

 

 

 

 

 

 

 

 

 

 

COMMUNICATIONS - 1.1%

 

 

 

 

 

 

 

 

 

Alibaba Group Holding Ltd

 

3.600

 

11/28/2024

 

500,000

 

$

523,642

 

 

 

 

 

 

 

 

 

 

CONSUMER, CYCLICAL - 1.1%

 

 

 

 

 

 

 

 

 

Walgreens Boots Alliance, Inc.

 

3.450

 

6/1/2026

 

500,000

 

 

519,059

 

 

 

 

 

 

 

 

 

 

CONSUMER, NON-CYCLICAL - 4.7%

 

 

 

 

 

 

 

 

 

Anthem, Inc.

 

3.125

 

5/15/2022

 

500,000

 

 

520,452

Celgene Corp.

 

3.250

 

8/15/2022

 

500,000

 

 

524,782

Express Scripts Holding Co.

 

4.500

 

2/25/2026

 

500,000

 

 

548,417

Gilead Sciences, Inc.

 

4.500

 

4/1/2021

 

500,000

 

 

555,038

 

 

 

 

 

 

 

 

 

 

ENERGY - 2.3%

 

 

 

 

 

 

 

 

 

Chevron Corp.

 

2.419

 

11/17/2020

 

500,000

 

 

514,105

Phillips 66

 

4.300

 

4/1/2022

 

500,000

 

 

549,620

 

 

 

 

 

 

 

 

 

 

FINANCIAL - 8.3%

 

 

 

 

 

 

 

 

 

Bank of America Corp.

 

5.875

 

1/5/2021

 

500,000

 

 

573,428

Goldman Sachs Group, Inc.

 

5.250

 

7/27/2021

 

1,000,000

 

 

1,128,961

JPMorgan Chase & Co.

 

3.250

 

9/23/2022

 

500,000

 

 

524,441

MetLife, Inc.

 

3.600

 

4/10/2024

 

500,000

 

 

529,600

PNC Financial Services Group, Inc.

 

3.300

 

3/8/2022

 

500,000

 

 

530,900

Wells Fargo & Co.

 

4.300

 

7/22/2027

 

500,000

 

 

538,869

 

 

 

 

 

 

 

 

 

 

GOVERNMENT - 13.0%

 

 

 

 

 

 

 

 

 

United States Treasury

 

0.750

 

8/15/2019

 

2,000,000

 

 

1,993,046

United States Treasury

 

1.375

 

5/31/2021

 

1,000,000

 

 

1,010,820

United States Treasury

 

1.625

 

4/30/2023

 

1,000,000

 

 

1,014,570

United States Treasury

 

1.625

 

5/15/2026

 

2,000,000

 

 

2,002,656

 

 

 

 

 

 

 

 

 

 

INDUSTRIAL - 1.2%

 

 

 

 

 

 

 

 

 

General Electric Co.

 

3.100

 

1/9/2023

 

500,000

 

 

531,185

 

 

 

 

 

 

 

 

 

 

TECHNOLOGY - 4.5%

 

 

 

 

 

 

 

 

 

Hewlett Packard Enterprise Co.*

 

5.150

 

10/15/2025

 

500,000

 

 

533,653

Intel Corp.

 

2.700

 

12/15/2022

 

1,000,000

 

 

1,044,179

Lam Research Corp.

 

3.450

 

6/15/2023

 

500,000

 

 

511,433

 

 

 

 

 

 

 

 

 

 

UTILITIES - 1.2%

 

 

 

 

 

 

 

 

 

Duke Energy Indiana LLC

 

3.750

 

7/15/2020

 

500,000

 

 

538,577

 

 

 

 

 

 

 

 

 

 

TOTAL FIXED-INCOME SECURITIES - 37.4%

 

 

 

 

 

 

 

 

 

(Cost $16,730,665)

 

 

 

 

 

 

 

 

17,261,431

 

 

 

 

 

 

 

 

 

 

SHORT-TERM INVESTMENTS - 8.7%

 

 

 

 

 

 

 

 

 

Federated Treasury Obligations Fund, 0.18% Yield^

 

 

 

 

 

 

 

 

 

(Cost $3,982,988)

 

 

 

 

 

3,982,988

 

 

3,982,988





TOTAL INVESTMENTS IN SECURITIES - 98.6%

 

 

 

 

 

 

 

 

 

(Cost $43,599,336)

 

 

 

 

 

 

 

 

45,503,525

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS LESS LIABILITIES - 1.4%

 

 

 

 

 

 

 

 

668,853

 

 

 

 

 

 

 

 

 

 

TOTAL NET ASSETS - 100.0%

 

 

 

 

 

 

 

$

46,172,377


* Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities are considered liquid and may be resold in transactions exempt

from registration. At September 30, 2016, the aggregate market value of these

securities amounted to $533,653 or 1.16% of net assets.


^ Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.


See Notes to Financial Statements






















ADVANCE CAPITAL I - RETIREMENT INCOME FUND

PORTFOLIO OF INVESTMENTS (UNAUDITED)

SEPTEMBER 30, 2016


Fixed Income Securities

 

 

 

 

 

Principal

 

 

 

and Short-Term Investments

 

Coupon

 

Maturity

 

Amount

 

Value

 

 

 

 

 

 

 

 

 

 

COMMUNICATIONS - 5.9%

 

 

 

 

 

 

 

 

 

Alibaba Group Holding Ltd

 

3.600

 

11/28/2024

 

1,000,000

 

$

1,047,283

Cisco Systems, Inc.

 

4.450

 

1/15/2020

 

2,000,000

 

 

2,188,982

 

 

 

 

 

 

 

 

 

 

CONSUMER, CYCLICAL - 5.8%

 

 

 

 

 

 

 

 

 

Advance Auto Parts, Inc.

 

4.500

 

12/1/2023

 

1,000,000

 

 

1,083,074

Newell Brands, Inc.

 

3.850

 

4/1/2023

 

1,000,000

 

 

1,064,466

Walgreens Boots Alliance, Inc.

 

3.450

 

6/1/2026

 

1,000,000

 

 

1,038,118

 

 

 

 

 

 

 

 

 

 

CONSUMER, NON-CYCLICAL - 13.7%

 

 

 

 

 

 

 

 

 

Anthem, Inc.

 

3.125

 

5/15/2022

 

1,000,000

 

 

1,040,904

Celgene Corp.

 

3.250

 

8/15/2022

 

1,000,000

 

 

1,049,564

Express Scripts Holding Co.

 

4.500

 

2/25/2026

 

1,000,000

 

 

1,096,834

Gilead Sciences, Inc.

 

4.500

 

4/1/2021

 

1,000,000

 

 

1,110,076

HCA, Inc.

 

4.750

 

5/1/2023

 

500,000

 

 

521,250

Johnson & Johnson

 

3.700

 

3/1/2046

 

1,500,000

 

 

1,671,521

Sysco Corp.

 

3.300

 

7/15/2026

 

1,000,000

 

 

1,036,636

 

 

 

 

 

 

 

 

 

 

ENERGY - 3.9%

 

 

 

 

 

 

 

 

 

Chevron Corp.

 

2.419

 

11/17/2020

 

1,000,000

 

 

1,028,209

Phillips 66

 

4.300

 

4/1/2022

 

1,000,000

 

 

1,099,239

 

 

 

 

 

 

 

 

 

 

FINANCIAL - 24.4%

 

 

 

 

 

 

 

 

 

Bank of America Corp.

 

4.000

 

4/1/2024

 

1,000,000

 

 

1,077,612

BlackRock, Inc.

 

3.375

 

6/1/2022

 

500,000

 

 

537,287

Capital One Financial Corp.

 

4.200

 

10/29/2025

 

1,500,000

 

 

1,564,938

Citigroup, Inc.

 

5.500

 

9/13/2025

 

1,000,000

 

 

1,140,437

Fairfax Financial Holdings Ltd*

 

5.800

 

5/15/2021

 

1,000,000

 

 

1,095,051

Goldman Sachs Group, Inc.

 

3.850

 

7/8/2024

 

1,000,000

 

 

1,061,741

JPMorgan Chase & Co.

 

3.250

 

9/23/2022

 

1,000,000

 

 

1,048,881

MetLife, Inc.

 

3.600

 

4/10/2024

 

1,000,000

 

 

1,059,200

Morgan Stanley

 

3.875

 

4/29/2024

 

1,000,000

 

 

1,069,489

PNC Financial Services Group, Inc.

 

3.300

 

3/8/2022

 

1,000,000

 

 

1,061,800

Visa, Inc.

 

2.800

 

12/14/2022

 

1,500,000

 

 

1,572,498

Wells Fargo & Co.

 

4.300

 

7/22/2027

 

1,000,000

 

 

1,077,738

 

 

 

 

 

 

 

 

 

 

GOVERNMENT - 23.2%

 

 

 

 

 

 

 

 

 

Province of Quebec Canada

 

2.625

 

2/13/2023

 

1,500,000

 

 

1,570,155

United States Treasury

 

0.750

 

8/15/2019

 

2,000,000

 

 

1,993,046

United States Treasury

 

1.375

 

5/31/2021

 

2,000,000

 

 

2,021,640

United States Treasury

 

1.625

 

4/30/2023

 

2,000,000

 

 

2,029,140

United States Treasury

 

2.000

 

8/15/2025

 

3,000,000

 

 

3,104,532

United States Treasury

 

1.625

 

5/15/2026

 

2,000,000

 

 

2,002,656

 

 

 

 

 

 

 

 

 

 

INDUSTRIAL - 4.8%

 

 

 

 

 

 

 

 

 

General Electric Co.

 

3.100

 

1/9/2023

 

1,000,000

 

 

1,062,369

United Parcel Service, Inc.

 

2.450

 

10/1/2022

 

1,500,000

 

 

1,557,860

 

 

 

 

 

 

 

 

 

 

TECHNOLOGY - 3.8%

 

 

 

 

 

 

 

 

 

Hewlett Packard Enterprise Co.*

 

5.150

 

10/15/2025

 

1,000,000

 

 

1,067,306

Lam Research Corp.

 

3.450

 

6/15/2023

 

1,000,000

 

 

1,022,866

 

 

 

 

 

 

 

 

 

 

UTILITIES - 1.9%

 

 

 

 

 

 

 

 

 

Progress Energy, Inc.

 

3.150

 

4/1/2022

 

1,000,000

 

 

1,047,441





TOTAL FIXED-INCOME SECURITIES - 87.4%

 

 

 

 

 

 

 

 

 

(Cost $46,052,082)

 

 

 

 

 

 

 

 

47,921,838

 

 

 

 

 

 

 

 

 

 

SHORT-TERM INVESTMENTS - 11.0%

 

 

 

 

 

 

 

 

 

Federated Treasury Obligations Fund, 0.18% Yield^

 

 

 

 

 

 

 

 

 

(Cost $6,020,266)

 

 

 

 

 

6,020,266

 

 

6,020,266

 

 

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS IN SECURITIES - 98.4%

 

 

 

 

 

 

 

 

 

(Cost $52,072,348)

 

 

 

 

 

 

 

 

53,942,104

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS LESS LIABILITIES - 1.6%

 

 

 

 

 

 

 

 

864,025

 

 

 

 

 

 

 

 

 

 

TOTAL NET ASSETS - 100.0%

 

 

 

 

 

 

 

$

54,806,128



* Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities are considered liquid and may be resold in transactions exempt

from registration. At September 30, 2016, the aggregate market value of these

securities amounted to $2,162,357 or 3.95% of net assets.


^ Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.


See Notes to Financial Statements


















ADVANCE CAPITAL I - CORE EQUITY FUND

PORTFOLIO OF INVESTMENTS (UNAUDITED)

SEPTEMBER 30, 2016


Common Stock

 

 

 

 

 

and Short-Term Investments

 

Shares

 

Value

 

 

 

 

 

 

BASIC MATERIALS - 3.0%

 

 

 

 

 

International Flavors

 

300

 

$

42,891

Monsanto Co.

 

700

 

 

71,540

Sherwin-Williams Co.

 

100

 

 

27,666

 

 

 

 

 

 

COMMUNICATIONS - 4.1%

 

 

 

 

 

eBay, Inc.*

 

2,600

 

 

85,540

Juniper Networks, Inc.

 

2,600

 

 

62,556

Twenty-First Century Fox, Inc.

 

2,000

 

 

48,420

 

 

 

 

 

 

CONSUMER, CYCLICAL - 27.7%

 

 

 

 

 

Advance Auto Parts, Inc.

 

200

 

 

29,824

Alaska Air Group, Inc.

 

700

 

 

46,102

BorgWarner, Inc.

 

1,700

 

 

59,806

CVS Health Corp.

 

600

 

 

53,394

Delta Air Lines, Inc.

 

1,400

 

 

55,104

Genuine Parts Co.

 

600

 

 

60,270

Hasbro, Inc.

 

800

 

 

63,464

Home Depot, Inc.

 

1,000

 

 

128,680

Lear Corp.

 

600

 

 

72,732

Mattel, Inc.

 

2,000

 

 

60,530

McDonald's Corp.

 

500

 

 

57,680

Michael Kors Holdings Ltd*

 

1,400

 

 

65,506

NIKE, Inc.

 

1,100

 

 

57,915

PVH Corp.

 

600

 

 

66,300

Southwest Airlines Co.

 

1,500

 

 

58,335

Target Corp.

 

1,000

 

 

68,680

VF Corp.

 

1,100

 

 

61,655

Wal-Mart Stores, Inc.

 

2,000

 

 

144,240

Whirlpool Corp.

 

400

 

 

64,864

Wyndham Worldwide Corp.

 

800

 

 

53,864

 

 

 

 

 

 

CONSUMER, NON-CYCLICAL - 28.1%

 

 

 

 

 

Abbott Laboratories

 

1,400

 

 

59,206

Aetna, Inc.

 

500

 

 

57,725

AMERCO*

 

100

 

 

32,423

Becton Dickinson and Co.

 

300

 

 

53,919

Cardinal Health, Inc.

 

800

 

 

62,160

Cigna Corp.

 

400

 

 

52,128

Coca-Cola Co.

 

1,500

 

 

63,480

CR Bard, Inc.

 

200

 

 

44,856

DENTSPLY SIRONA, Inc.

 

1,000

 

 

59,430

Ecolab, Inc.

 

600

 

 

73,032

General Mills, Inc.

 

1,000

 

 

63,880

Global Payments, Inc.

 

1,000

 

 

76,760

Hershey Co.

 

600

 

 

57,360

Hormel Foods Corp.

 

1,800

 

 

68,274

Johnson & Johnson

 

600

 

 

70,878

Kroger Co.

 

1,800

 

 

53,424

Mallinckrodt PLC*

 

1,000

 

 

69,780

McCormick & Co., Inc.

 

600

 

 

59,952

Medtronic PLC

 

800

 

 

69,120

PepsiCo., Inc.

 

600

 

 

65,262

Procter & Gamble Co.

 

800

 

 

71,800

Sysco Corp.

 

1,300

 

 

63,713





ENERGY - 2.6%

 

 

 

 

 

Phillips 66

 

900

 

 

72,495

Valero Energy Corp.

 

1,000

 

 

53,000

 

 

 

 

 

 

FINANCIAL - 7.7%

 

 

 

 

 

Affiliated Managers Group, Inc.*

 

300

 

 

43,410

Alliance Data Systems Corp.

 

200

 

 

42,906

Berkshire Hathaway, Inc.*

 

400

 

 

57,788

Synchrony Financial

 

2,200

 

 

61,600

TD Ameritrade Holding Corp.

 

2,600

 

 

91,624

Unum Group

 

2,100

 

 

74,151

 

 

 

 

 

 

INDUSTRIAL - 8.1%

 

 

 

 

 

3M Co.

 

200

 

 

35,246

Acuity Brands, Inc.

 

100

 

 

26,460

Boeing Co.

 

500

 

 

65,870

CH Robinson Worldwide, Inc.

 

900

 

 

63,414

Dover Corp.

 

1,000

 

 

73,640

FedEx Corp.

 

300

 

 

52,404

Illinois Tool Works, Inc.

 

600

 

 

71,904

 

 

 

 

 

 

TECHNOLOGY - 6.4%

 

 

 

 

 

Analog Devices, Inc.

 

1,200

 

 

77,340

Apple, Inc.

 

600

 

 

67,782

Intel Corp.

 

2,100

 

 

79,254

Xilinx, Inc.

 

1,500

 

 

81,510

 

 

 

 

 

 

TOTAL COMMON STOCK - 87.7%

 

 

 

 

 

(Cost $4,042,725)

 

 

 

 

4,207,918

 

 

 

 

 

 

SHORT-TERM INVESTMENTS - 12.2%

 

 

 

 

 

Federated Treasury Obligations Fund, 0.18% Yield ^

 

 

 

 

 

(Cost $585,531)

 

585,531

 

 

585,531

 

 

 

 

 

 

TOTAL INVESTMENTS IN SECURITIES - 99.9%

 

 

 

 

 

(Cost $4,628,256)

 

 

 

 

4,793,449

 

 

 

 

 

 

OTHER ASSETS LESS LIABILITIES - 0.1%

 

 

 

 

4,762

 

 

 

 

 

 

TOTAL NET ASSETS - 100.0%

 

 

 

$

4,798,211



* Securities are non-income producing


^ Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.


See Notes to Financial Statements








NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

ADVANCE CAPITAL I, INC.


SIGNIFICANT ACCOUNTING AND OTHER POLICIES


a)  Security Valuation


Equity securities for which exchange quotations are readily available are valued at the last quoted market price at the time the valuations are made and debt securities are valued using prices furnished by an independent third party pricing service.  The independent third party pricing service may use a matrix, formula or other objective method that considers the effect of market indices, yield curves and other specific adjustments to determine market price. When reliable market quotations are not readily available or are considered unreliable, securities are priced at their fair value, determined according to procedures adopted by the Board of Directors, which may include using an independent pricing service.  Fair value procedures may also be used if the COMPANY determines that a significant event has occurred between the time at which a market price is determined but prior to the time at which a fund’s net asset value is calculated.  Money market instruments or short-term debt held by the Funds with a remaining maturity of sixty days or less are valued at net asset value or amortized cost, when amortized cost approximates fair value best.


b)  Fair Value Measurement


As described above, the Funds utilize various methods to measure the fair value of their investments on a recurring basis.  Accounting principles generally accepted in the United States of America (“GAAP”) establishes a hierarchy that prioritizes inputs to valuation methods.


The three levels of the fair value hierarchy are described below:


Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments.)


The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.


The following is a summary of the inputs used to value the Fund’s investments as of September 30, 2016:


Valuation Inputs

 

Equity

Growth Fund

 

Balanced Fund

 

Retirement

Income Fund

 

Core

Equity Fund

Level 1 – Quoted  Prices:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock*

 

$

25,830,124

 

$

24,259,106

 

$

0

 

$

4,207,918

Short-term Investments

 

 

3,106,410

 

 

3,982,988

 

 

6,020,266

 

 

585,531

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2 – Other  Significant Observable Inputs:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income Securities*

 

 

0

 

 

17,261,431

 

 

47,921,838

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 3 – Significant Unobservable Inputs:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income Securities*

 

 

0

 

 

0

 

 

0

 

 

0

Total Value of Investments

 

$

28,936,534

 

$

45,503,525

 

$

53,942,104

 

$

4,793,449

*Please refer to the Portfolio of Investments to view common stock and fixed income securities segregated by industry type. The Funds did not hold any Level 3 assets during the three month period ended September 30, 2016.

There were no transfers between levels of the fair value hierarchy during the three month period ended September 30, 2016.  It is the Funds’ policy to consider transfers into or out of each Level as of the end of the reporting period.


c)  At September 30, 2016, the gross unrealized net appreciation and depreciation of securities for financial reporting purposes consisted of the following:


 

 

Equity

Growth Fund

 

Balanced

Fund

 

Retirement

Income Fund

 

Core Equity

Fund

Unrealized Appreciation

 

$

2,640,071 

 

$

2,434,592 

 

$

1,880,076 

 

$

310,207 

Unrealized Depreciation

 

 

(798,501)

 

 

(530,403)

 

 

(10,320)

 

 

(145,014)

Net Unrealized Appreciation

 

$

1,841,570 

 

$

1,904,189 

 

$

1,869,756 

 

$

165,193 




d)  Other Policies


Security transactions are accounted for on trade date, the date the order to buy or sell is executed. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Premium and discount on fixed income securities are amortized using the effective interest method. Realized gains and losses on security transactions are determined on the specific identification method for book and tax purposes.


Item 2. Controls and Procedures.


(a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) as of a date within 90 days of the filing date of this report, the registrant's principal executive officer and principal financial officer have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the registrant, is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that such information is recorded, processed, summarized, and reported on a timely basis.


(b) There were no significant changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.


Item 3. Exhibits.


Filed as an exhibit as part of this Form is a separate certification for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)).


















SIGNATURES


[See General Instruction F]


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



Advance Capital I, Inc.


/S/ Christopher M. Kostiz

-------------------------------------------

Christopher M. Kostiz, President

(principal executive officer)


Date:  November 28, 2016



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



/S/ Christopher M. Kostiz

-------------------------------------------

Christopher M. Kostiz, President

(principal executive officer)


Date:  November 28, 2016



/S/ Julie A. Katynski

-----------------------------------------

Julie A. Katynski, Vice President, Treasurer & Assistant Secretary

(principal financial officer)


Date:  November 28, 2016



EXHIBIT INDEX


(a) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)