N-14 8C/A 1 proforma.txt PRO FORM SOIS
----------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. Pro Forma Portfolio of Investments (@) December 31, 2003 (Unaudited) TARGET FUND ACQUIRING FUND Pro Forma % of MGC CLM Combined Fund Net Shares/ Market Shares/ Market Shares/ Market Assets Par Value ($) Par Value Par Value ($) ------------------------------------------------------------------------------------------ EQUITY SECURITIES 94.38% CLOSED-END DOMESTIC FUNDS - 1.73% Adams Express Co. 0.46% 49,500 614,295 49,500 614,295 General American Investor Co. Inc. 0.23% 10,500 312,165 10,500 312,165 Salomon Brothers Fund, Inc. (The) 0.16% 18,400 221,352 18,400 221,352 Tri-Continental Corp. 0.47% 39,000 639,600 39,000 639,600 Zweig Fund, Inc. 0.40% 110,400 540,960 110,400 540,960 ----------- ----------- 2,328,372 2,328,372 CONSUMER DISCRETIONARY - 13.73% Bed Bath & Beyond Inc. * 0.03% 1,000 43,350 1,000 43,350 Best Buy Co., Inc. 0.04% 1,000 52,240 1,000 52,240 Carnival Corp. 0.06% 2,100 83,433 2,100 83,433 Carter's, Inc.* 0.05% 2,500 63,625 2,500 63,625 Clear Channel Communications, Inc. 0.07% 2,100 98,343 2,100 98,343 Comcast Corp., Class A * 0.09% 3,882 127,601 3,882 127,601 Costco Wholesale Corp. * 0.04% 1,500 55,770 1,500 55,770 CVS Corp. 0.04% 1,500 54,180 1,500 54,180 Delphi Corp. 0.02% 2,000 20,420 2,000 20,420 Ford Motor Co. 0.08% 6,500 104,000 6,500 104,000 Fortune Brands, Inc. 0.05% 1,000 71,490 1,000 71,490 Furniture Brands International, Inc. 2.18% 100,100 2,935,933 100,100 2,935,933 Gannett Co., Inc. 0.07% 1,000 89,160 1,000 89,160 Gap, Inc. (The) 0.05% 2,700 62,667 2,700 62,667 General Motors Corp. 0.08% 1,900 101,460 1,900 101,460 Gildan Activewear Inc., Class A* 1.18% 51,500 1,590,320 51,500 1,590,320 Goodyear Tire & Rubber Co. (The) * 0.01% 2,500 19,650 2,500 19,650 Harley-Davidson, Inc. 0.04% 1,000 47,530 1,000 47,530 Hilton Hotels Corp. 0.02% 1,500 25,695 1,500 25,695 Home Depot, Inc. (The) 0.16% 6,100 216,489 6,100 216,489 Kohl's Corp. * 0.03% 1,000 44,940 1,000 44,940 -1- Lowe's Companies, Inc. 0.10% 2,500 138,475 2,500 138,475 Marriott International, Inc., Class A 0.03% 1,000 46,200 1,000 46,200 Martek Biosciences Corp.* 1.47% 30,500 1,981,585 30,500 1,981,585 May Department Stores Co. (The) 0.02% 1,000 29,070 1,000 29,070 McDonald's Corp. 0.04% 2,100 52,143 2,100 52,143 Multimedia Games, Inc.* 1.31% 43,000 1,767,300 43,000 1,767,300 NIKE, Inc., Class B 0.05% 1,000 68,460 1,000 68,460 Omnicom Group Inc. 0.06% 1,000 87,330 1,000 87,330 Reebok International Ltd. 0.04% 1,500 58,980 1,500 58,980 Staples, Inc. * 0.03% 1,500 40,950 1,500 40,950 Starbucks Corp. * 0.03% 1,200 39,672 1,200 39,672 Target Corp. 0.09% 3,200 122,880 3,200 122,880 The Cheesecake Factory Inc.* 1.23% 37,700 1,659,931 37,700 1,659,931 Thor Industries, Inc. 1.20% 28,800 1,619,136 28,800 1,619,136 Time Warner Inc. * 0.14% 10,500 188,895 10,500 188,895 Tractor Supply Company* 0.55% 19,200 746,688 19,200 746,688 United Natural Foods, Inc.* 2.11% 79,200 2,844,072 79,200 2,844,072 Viacom Inc., non-voting Class B 0.20% 6,000 266,280 6,000 266,280 Wal-Mart Stores, Inc. 0.52% 13,300 705,565 13,300 705,565 Walt Disney Co. (The) 0.08% 4,700 109,651 4,700 109,651 Yum! Brands, Inc. * 0.03% 1,000 34,400 1,000 34,400 ------------- ----------- 15,208,590 3,307,369 18,515,959 CONSUMER STAPLES - 4.71% Albertson's, Inc. 0.04% 2,500 56,625 2,500 56,625 Altria Group, Inc. 0.20% 4,900 266,658 4,900 266,658 Anheuser-Busch Companies, Inc. 0.09% 2,200 115,896 2,200 115,896 Archer-Daniels-Midland Co. 0.03% 2,415 36,756 2,415 36,756 Coca-Cola Co. (The) 0.24% 6,500 329,875 6,500 329,875 Colgate-Palmolive Co. 0.04% 1,000 50,050 1,000 50,050 ConAgra Foods, Inc. 0.04% 1,900 50,141 1,900 50,141 General Mills, Inc. 0.08% 2,500 113,250 2,500 113,250 Gillette Co. (The) 0.07% 2,600 95,498 2,600 95,498 Kimberly-Clark Corp. 0.04% 900 53,181 900 53,181 Kroger Co. (The) * 0.05% 3,500 64,785 3,500 64,785 Panera Bread Co. Class A* 1.24% 42,300 1,672,119 42,300 1,672,119 PepsiCo, Inc. 0.18% 5,100 237,762 5,100 237,762 Performance Food Group Co.* 1.05% 39,300 1,421,481 39,300 1,421,481 Philadelphia Suburban Corp. 0.87% 53,077 1,173,002 53,077 1,173,002 Procter & Gamble Co. (The) 0.28% 3,800 379,544 3,800 379,544 Sysco Corp. 0.09% 3,300 122,859 3,300 122,859 Walgreen Co. 0.09% 3,200 116,416 3,200 116,416 ------------- ----------- 4,266,602 2,089,296 6,355,898 -2- ENERGY - 5.26% Anadarko Petroleum Corp. 0.03% 900 45,909 900 45,909 Baker Hughes Inc. 0.06% 2,500 80,400 2,500 80,400 CenterPoint Energy, Inc. 0.02% 2,500 24,225 2,500 24,225 ChevronTexaco Corp. 0.21% 3,340 288,543 3,340 288,543 ConocoPhillips 0.08% 1,728 113,305 1,728 113,305 Exxon Mobil Corp. 0.58% 19,000 779,000 19,000 779,000 FMC Technologies, Inc.* 1.83% 105,800 2,465,140 105,800 2,465,140 Reliant Resources, Inc. * 0.01% 1,971 14,506 1,971 14,506 Schlumberger Ltd. 0.08% 2,000 109,440 2,000 109,440 Ultra Petroleum Corp.* 1.47% 80,300 1,976,986 80,300 1,976,986 Western Gas Resources, Inc. 0.89% 25,400 1,200,150 25,400 1,200,150 ------------- ----------- ----------- 5,642,276 1,455,328 7,097,604 FINANCIALS - 10.70% Affiliated Managers Group, Inc.* 2.08% 40,400 2,811,436 40,400 2,811,436 AFLAC Inc. 0.05% 1,900 68,742 1,900 68,742 Allstate Corp. (The) 0.08% 2,500 107,550 2,500 107,550 American Express Co. 0.11% 3,000 144,690 3,000 144,690 American International Group, Inc. 0.44% 9,042 599,304 9,042 599,304 Bank of America Corp. 0.23% 3,900 313,677 3,900 313,677 Bank of New York Co., Inc. (The) 0.06% 2,500 82,800 2,500 82,800 Bank One Corp. 0.09% 2,600 118,534 2,600 118,534 BB&T Corp. 0.05% 1,600 61,824 1,600 61,824 Charles Schwab Corp. (The) 0.02% 2,500 29,600 2,500 29,600 Citigroup Inc. 0.47% 13,100 635,874 13,100 635,874 Direct General Corp. 1.01% 41,000 1,357,100 41,000 1,357,100 Fannie Mae 0.12% 2,200 165,132 2,200 165,132 Fifth Third Bancorp 0.09% 2,000 118,200 2,000 118,200 First Niagara Financial Group, Inc. 0.93% 84,000 1,252,440 84,000 1,252,440 FleetBoston Financial Corp. 0.08% 2,400 104,760 2,400 104,760 Freddie Mac 0.11% 2,500 145,800 2,500 145,800 Goldman Sachs Group, Inc. (The) 0.10% 1,300 128,349 1,300 128,349 HSBC Holdings plc, ADR 0.06% 963 75,904 963 75,904 J. P. Morgan Chase & Co. 0.16% 6,000 220,380 6,000 220,380 Marsh & McLennan Companies, Inc. 0.14% 4,000 191,560 4,000 191,560 MBNA Corp. 0.06% 3,000 74,550 3,000 74,550 Mellon Financial Corp. 0.04% 1,800 57,798 1,800 57,798 Merrill Lynch & Co., Inc. 0.09% 2,000 117,300 2,000 117,300 MetLife, Inc. 0.07% 2,700 90,909 2,700 90,909 -3- Morgan Stanley 0.15% 3,500 202,545 3,500 202,545 National City Corp. 0.06% 2,200 74,668 2,200 74,668 National Financial Partners Corp. 0.83% 40,500 1,115,775 40,500 1,115,775 Platinum Underwriters Holdings, Ltd. 1.62% 72,600 2,178,000 72,600 2,178,000 PNC Financial Services Group 0.04% 1,100 60,203 1,100 60,203 Prudential Financial, Inc. 0.08% 2,500 104,425 2,500 104,425 Scottish Re Group Ltd. 0.35% 22,900 475,862 22,900 475,862 State Street Corp. 0.04% 1,000 52,080 1,000 52,080 SunTrust Banks, Inc. 0.06% 1,100 78,650 1,100 78,650 The First Marblehead Corp. * 0.20% 12,600 275,688 12,600 275,688 Travelers Property Casualty Corp., Class A 0.01% 738 12,383 738 12,383 Travelers Property Casualty Corp., Class B 0.02% 1,517 25,743 1,517 25,743 U.S. Bancorp 0.09% 4,200 125,076 4,200 125,076 Wachovia Corp. 0.12% 3,600 167,724 3,600 167,724 Washington Mutual, Inc. 0.09% 3,150 126,378 3,150 126,378 Wells Fargo & Co. 0.21% 4,800 282,672 4,800 282,672 ------------- ----------- ----------- ------------- ----------- ----------- 9,466,301 4,965,784 14,432,085 HEALTHCARE - 12.44% Abbott Laboratories 0.14% 4,000 186,400 4,000 186,400 Amgen Inc. * 0.16% 3,500 216,300 3,500 216,300 Baxter International Inc. 0.06% 2,500 76,300 2,500 76,300 Boston Scientific Corp. * 0.08% 3,000 110,280 3,000 110,280 Bristol-Myers Squibb Co. 0.10% 4,500 128,700 4,500 128,700 Cardinal Health, Inc. 0.05% 1,000 61,160 1,000 61,160 Cooper Companies, Inc 2.10% 60,000 2,827,800 60,000 2,827,800 Edwards Lifesciences 2.01% 89,900 2,704,192 89,900 2,704,192 Eli Lilly & Co. 0.16% 3,000 210,990 3,000 210,990 HCA Inc. 0.06% 2,000 85,920 2,000 85,920 HEALTHSOUTH Corp. * 0.01% 2,500 11,450 2,500 11,450 IDEXX Laboratories, Inc.* 1.25% 36,400 1,684,592 36,400 1,684,592 Integra Lifesciences Holdings* 1.69% 79,500 2,276,085 79,500 2,276,085 Johnson & Johnson 0.29% 7,500 387,450 7,500 387,450 McKesson Corp. 0.02% 1,000 32,160 1,000 32,160 Medco Health Solutions, Inc. * 0.02% 723 24,575 723 24,575 Medtronic, Inc. 0.16% 4,300 209,023 4,300 209,023 Merck & Co. Inc. 0.21% 6,000 277,200 6,000 277,200 Neurocrine Biosciences, Inc. * 1.28% 31,700 1,728,918 31,700 1,728,918 NPS Pharmaceuticals, Inc.* 1.82% 80,000 2,459,200 80,000 2,459,200 Pfizer Inc. 0.54% 20,500 724,265 20,500 724,265 Schering-Plough Corp. 0.03% 2,500 43,475 2,500 43,475 UnitedHealth Group Inc. 0.13% 3,000 174,540 3,000 174,540 Wyeth 0.10% 3,300 140,085 3,300 140,085 ------------- ----------- ----------- 13,680,787 3,100,273 16,781,060 -4- INDUSTRIALS - 12.81% 3M Co. 0.13% 2,000 170,060 2,000 170,060 Automatic Data Processing, Inc. 0.06% 2,000 79,220 2,000 79,220 Boeing Co. (The) 0.09% 3,000 126,420 3,000 126,420 Caterpillar Inc. 0.08% 1,300 107,926 1,300 107,926 Cendant Corp. * 0.04% 2,700 60,129 2,700 60,129 Central Freight Lines, Inc.* 0.04% 3,300 58,575 3,300 58,575 Compass Minerals International, Inc.* 0.56% 52,700 752,556 52,700 752,556 Concord EFS, Inc. * 0.03% 2,500 37,100 2,500 37,100 DSP Group, Inc.* 2.51% 135,600 3,377,796 135,600 3,377,796 EDO Corp. 1.03% 56,500 1,392,725 56,500 1,392,725 Emerson Electric Co. 0.07% 1,500 97,125 1,500 97,125 FedEx Corp. 0.05% 1,000 67,500 1,000 67,500 General Electric Co. 0.67% 29,000 898,420 29,000 898,420 Heartland Express, Inc. 1.12% 62,337 1,507,932 62,337 1,507,932 Honeywell International Inc. 0.07% 2,800 93,604 2,800 93,604 Illinois Tool Works Inc. 0.06% 1,000 83,910 1,000 83,910 Lockheed Martin Corp. 0.06% 1,500 77,100 1,500 77,100 Masco Corp. 0.03% 1,700 46,597 1,700 46,597 Overnight Corp.* 0.09% 5,600 127,400 5,600 127,400 Paychex, Inc. 0.07% 2,500 93,000 2,500 93,000 Quanta Services, Inc.* 0.38% 70,000 511,000 70,000 511,000 Shuffle Master, Inc.* 1.88% 73,400 2,541,108 73,400 2,541,108 Southwest Airlines Co. 0.03% 2,700 43,578 2,700 43,578 Swift Transportation Co., Inc.* 1.05% 67,100 1,410,442 67,100 1,410,442 Transocean Inc. * 0.04% 2,500 60,025 2,500 60,025 Tyco International Ltd. 0.14% 7,000 185,500 7,000 185,500 Union Pacific Corp. 0.05% 1,000 69,480 1,000 69,480 United Parcel Service, Inc., Class B 0.19% 3,500 260,925 3,500 260,925 United Technologies Corp. 0.12% 1,700 161,109 1,700 161,109 Universal Technical Institute Inc.* 0.18% 8,200 246,000 8,200 246,000 USF Corp. 1.84% 72,600 2,482,194 72,600 2,482,194 Waste Management, Inc. 0.04% 1,700 50,320 1,700 50,320 ------------- ----------- ----------- 14,407,728 2,869,048 17,276,776 INFORMATION TECHNOLOGY - 22.81% Agere Systems Inc., Class A * 0.00% 115 351 115 351 Agere Systems Inc., Class B * 0.01% 2,830 8,207 2,830 8,207 Agilent Technologies, Inc. 0.04% 1,800 52,632 1,800 52,632 -5- Altera Corp. * 0.03% 1,500 34,050 1,500 34,050 Analog Devices, Inc. 0.03% 1,000 45,650 1,000 45,650 Applied Films Corp 1.52% 62,000 2,047,240 62,000 2,047,240 Applied Materials, Inc. * 0.05% 2,900 65,105 2,900 65,105 Avocent Corporation 1.91% 70,500 2,574,660 70,500 2,574,660 Caci International Inc. Class A 1.95% 54,100 2,630,342 54,100 2,630,342 Callidus Software* 0.04% 3,300 58,376 3,300 58,376 Cisco Systems, Inc. * 0.30% 16,900 410,501 16,900 410,501 Corning Inc. * 0.02% 3,000 31,290 3,000 31,290 Dell Inc. * 0.16% 6,500 220,740 6,500 220,740 Electronic Data Systems Corp. 0.02% 1,000 24,540 1,000 24,540 EMC Corp. * 3.48% 355,830 4,597,324 7,000 90,440 362,830 4,687,764 Enterasys Networks, Inc.* 1.56% 562,100 2,107,875 562,100 2,107,875 Equinix, Inc.* 0.35% 16,500 465,300 16,500 465,300 Fairchild Semiconductor International, Inc.* 3.73% 201,600 5,033,952 201,600 5,033,952 First Data Corp. 0.15% 5,000 205,450 5,000 205,450 Harris Interactive Inc.* 0.94% 152,200 1,263,260 152,200 1,263,260 Hewlett-Packard Co. 0.13% 7,800 179,166 7,800 179,166 Intel Corp. 0.47% 19,500 627,900 19,500 627,900 International Business Machines Corp. 0.37% 5,400 500,472 5,400 500,472 ITT Educational Services, Inc.* 1.44% 41,200 1,935,164 41,200 1,935,164 Linear Technology Corp. 0.03% 1,000 42,070 1,000 42,070 Maxim Integrated Products, Inc. 0.04% 1,000 49,800 1,000 49,800 Micron Technology, Inc. * 0.02% 2,500 33,675 2,500 33,675 Microsoft Corp. 0.62% 30,200 831,708 30,200 831,708 Motorola, Inc. 0.07% 6,600 92,862 6,600 92,862 Oracle Corp. * 0.12% 12,300 162,360 12,300 162,360 QUALCOMM Inc. 0.10% 2,500 134,825 2,500 134,825 Sanmina-SCI Corp. * 0.02% 2,500 31,525 2,500 31,525 Siebel Systems, Inc. * 0.03% 2,500 34,675 2,500 34,675 Skyworks Solutions, Inc.* 1.16% 179,100 1,558,170 179,100 1,558,170 Solectron Corp. * 0.01% 3,000 17,730 3,000 17,730 Sun Microsystems, Inc. * 0.02% 7,500 33,675 7,500 33,675 Texas Instruments Inc. 0.11% 4,900 143,962 4,900 143,962 Yahoo! Inc. * 0.06% 1,900 85,823 1,900 85,823 Zoran Corp.* 1.70% 131,750 2,291,133 131,750 2,291,133 ------------- ----------- ----------- 26,562,795 4,191,184 30,753,979 MATERIALS - 8.94% Air Products & Chemicals, Inc. 0.04% 1,000 52,830 1,000 52,830 Alcoa Inc. 0.09% 3,100 117,800 3,100 117,800 Dow Chemical Co. (The) 0.08% 2,700 112,239 2,700 112,239 -6- E. I. du Pont de Nemours & Co. 0.07% 2,200 100,958 2,200 100,958 General Cable Corp.* 0.75% 124,200 1,012,230 124,200 1,012,230 Georgia-Pacific Corp. 0.02% 1,000 30,670 1,000 30,670 International Paper Co. 0.06% 2,000 86,220 2,000 86,220 Joy Global Inc. 2.21% 114,100 2,983,715 114,100 2,983,715 Packaging Corp of America 2.10% 129,600 2,833,056 129,600 2,833,056 Peabody Energy Corp. 2.07% 67,000 2,794,570 67,000 2,794,570 Praxair, Inc. 0.08% 3,000 114,600 3,000 114,600 Steel Dynamics, Inc.* 1.29% 74,300 1,745,307 74,300 1,745,307 Weyerhaeuser Co. 0.05% 1,000 64,000 1,000 64,000 ------------- ----------- ----------- 11,368,878 679,317 12,048,195 TELECOMMUNICATION SERVICES - 0.83% AT&T Corp. 0.04% 2,400 48,720 2,400 48,720 AT&T Wireless Services Inc. * 0.03% 4,522 36,131 4,522 36,131 BellSouth Corp. 0.14% 6,500 183,950 6,500 183,950 Journal Communications, Inc. 0.16% 12,000 222,360 12,000 222,360 Lucent Technologies Inc. * 0.02% 10,700 30,388 10,700 30,388 SBC Communications Inc. 0.05% 2,500 70,150 2,500 70,150 Sprint Corp. (FON Group) 0.15% 7,900 205,953 7,900 205,953 Sprint Corp. (PCS Group) * 0.04% 3,000 49,260 3,000 49,260 Verizon Communications Inc. 0.21% 7,900 277,132 7,900 277,132 ------------- ----------- ----------- 222,360 901,684 1,124,044 UTILITIES - 0.41% American Electric Power Co., Inc. 0.03% 1,200 36,612 1,200 36,612 Dominion Resources, Inc. 0.05% 1,000 63,830 1,000 63,830 Duke Energy Corp. 0.04% 2,800 57,260 2,800 57,260 Edison International * 0.04% 2,500 54,825 2,500 54,825 FirstEnergy Corp. 0.07% 2,500 88,000 2,500 88,000 Scottish Power plc, ADR 0.08% 4,000 108,720 4,000 108,720 Southern Co. (The) 0.05% 2,400 72,600 2,400 72,600 TXU Corp. 0.02% 1,000 23,720 1,000 23,720 Xcel Energy, Inc. 0.03% 2,500 42,450 2,500 42,450 ------------- ----------- ----------- 0 548,017 548,017 TOTAL EQUITY SECURITIES 94.38% 100,826,318 26,435,672 127,261,990 ------------- ----------- ----------- SHORT-TERM INVESTMENTS - 25.03% REPURCHASE AGREEMENTS - 25.03% Bear, Stearns & Co. Inc. 5.83% 7,867,525 7,867,525 7,867,525 7,867,525 (Agreement dated 12/31/03 to be repurchased at $7,867,897) 0.85%, 01/02/04 -7- Bear, Stearns & Co. Inc. 17.70% 23,869,214 23,869,214 23,869,214 23,869,214 (Agreement dated 12/31/03 to be repurchased at $23,870,620) 1.06%**, 01/02/04*** Bear, Stearns & Co. Inc. 1.02% 1,380,273 1,380,273 1,380,273 1,380,273 (Agreement dated 12/31/03 to be repurchased at $1,380,345) 0.94%**, 01/02/04*** Bear, Stearns & Co. Inc. 0.10% 139,977 139,977 139,977 139,977 (Agreement dated 12/31/03 to be repurchased at $139,984), 0.85%, 01/02/04 Bear, Stearns & Co. Inc. 0.32% 425,588 425,588 425,588 425,588 (Agreement dated 12/31/03 to be repurchased at $425,613), 1.06%**, 01/02/04 *** Bear, Stearns & Co. Inc. 0.05% 65,644 65,644 65,644 65,644 (Agreement dated 12/31/03 to be repurchased at $65,647), 0.94%**, 01/02/04 *** ------------- ----------- ----------- TOTAL SHORT-TERM INVESTMENTS 25.03% 33,117,012 631,209 33,748,221 ------------- ----------- ----------- TOTAL INVESTMENTS AT MARKET 119.41% 133,943,330 27,066,881 161,010,211 ------------- ----------- ----------- TOTAL INVESTMENTS AT COST 108,743,027 24,952,427 133,695,454 ------------- ----------- ----------- -8- @ No adjustments are shown to the unaudited pro forma combined portfolio of investments due to the fact that upon consummation of the merger, securities would need to be sold in order for Acquiring Fund to comply with its prospectus restrictions. The foregoing sentence shall not restrict in any way the ability of the investment adviser of any of the funds from buying or selling securities in the normal course of such fund's business and operations. * Non-income producing securities -9- -------------------------------------------------------------------------------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. Pro Forma Portfolio of Investments (@) December 31, 2003 (Unaudited) TARGET FUND ACQUIRING FUND Pro Forma % of PGF CLM Combined Fund Net Shares/ Market Shares/ Market Shares/ Market Assets Par Value ($) Par Value Par Value ($) ------------------------------------------------------------------------------------------ EQUITY SECURITIES 99.51% CLOSED-END DOMESTIC FUNDS - 6.23% Adams Express Co. 1.17% 49,500 614,295 49,500 614,295 General American Investor Co. Inc. 0.59% 10,500 312,165 10,500 312,165 Salomon Brothers Fund, Inc. (The) 0.42% 18,400 221,352 18,400 221,352 Tri-Continental Corp. 2.40% 38,000 623,200 39,000 639,600 77,000 1,262,800 Zweig Fund, Inc. 1.64% 66,200 324,380 110,400 540,960 176,600 865,340 ----------- ---------- ---------- 947,580 2,328,372 3,275,952 CONSUMER DISCRETIONARY - 12.92% Bed Bath & Beyond Inc. * 0.08% 1,000 43,350 1,000 43,350 Best Buy Co., Inc. 0.22% 1,250 65,300 1,000 52,240 2,250 117,540 Carnival Corp. 0.36% 2,700 107,271 2,100 83,433 4,800 190,704 Circuit City Stores, Inc. 0.02% 1,000 10,130 1,000 10,130 Clear Channel Communications, Inc. 0.43% 2,700 126,441 2,100 98,343 4,800 224,784 Comcast Corp., Class A * 0.47% 3,655 120,140 3,882 127,601 7,537 247,741 Comcast Corp., Special Class A* 0.24% 4,100 128,248 4,100 128,248 Costco Wholesale Corp. * 0.11% 1,500 55,770 1,500 55,770 CVS Corp. 0.17% 1,000 36,120 1,500 54,180 2,500 90,300 Delphi Corp. 0.09% 2,600 26,546 2,000 20,420 4,600 46,966 Eastman Kodak Co. 0.07% 1,400 35,938 1,400 35,938 Federated Department Stores, Inc. 0.09% 1,000 47,130 1,000 47,130 Ford Motor Co. 0.37% 5,800 92,800 6,500 104,000 12,300 196,800 Fortune Brands, Inc. 0.14% 1,000 71,490 1,000 71,490 Gannett Co., Inc. 0.17% 1,000 89,160 1,000 89,160 Gap, Inc. (The) 0.23% 2,500 58,025 2,700 62,667 5,200 120,692 General Motors Corp. 0.46% 2,600 138,840 1,900 101,460 4,500 240,300 Goodyear Tire & Rubber Co. (The) * 0.04% 2,500 19,650 2,500 19,650 Harley-Davidson, Inc. 0.22% 1,400 66,542 1,000 47,530 2,400 114,072 Hilton Hotels Corp. 0.10% 1,700 29,121 1,500 25,695 3,200 54,816 Home Depot, Inc. (The) 0.92% 7,500 266,175 6,100 216,489 13,600 482,664 Kohl's Corp. * 0.17% 1,000 44,940 1,000 44,940 2,000 89,880 Limited Brands 0.09% 2,500 45,075 2,500 45,075 -10- Lowe's Companies, Inc. 0.53% 2,500 138,475 2,500 138,475 5,000 276,950 Marriott International, Inc., Class A 0.18% 1,100 50,820 1,000 46,200 2,100 97,020 Mattel, Inc. 0.05% 1,500 28,905 1,500 28,905 May Department Stores Co. (The) 0.13% 1,400 40,698 1,000 29,070 2,400 69,768 McDonald's Corp. 0.29% 4,000 99,320 2,100 52,143 6,100 151,463 Monsanto Co. 0.03% 580 16,692 580 16,692 NIKE, Inc., Class B 0.30% 1,300 88,998 1,000 68,460 2,300 157,458 Omnicom Group Inc. 0.27% 600 52,398 1,000 87,330 1,600 139,728 Reebok International Ltd. 0.11% 1,500 58,980 1,500 58,980 Sears, Roebuck & Co. 0.14% 1,600 72,784 1,600 72,784 Staples, Inc. * 0.16% 1,500 40,950 1,500 40,950 3,000 81,900 Starbucks Corp. * 0.18% 1,700 56,202 1,200 39,672 2,900 95,874 Target Corp. 0.35% 1,600 61,440 3,200 122,880 4,800 184,320 Time Warner Inc. * 0.85% 14,250 256,358 10,500 188,895 24,750 445,253 TJX Companies, Inc. (The) 0.10% 2,500 55,125 2,500 55,125 Toys "R" Us, Inc.* 0.02% 1,000 12,640 1,000 12,640 Viacom Inc., non-voting Class B 0.96% 5,400 239,652 6,000 266,280 11,400 505,932 Wal-Mart Stores, Inc. 2.45% 11,000 583,550 13,300 705,565 24,300 1,289,115 Walt Disney Co. (The) 0.50% 6,500 151,645 4,700 109,651 11,200 261,296 Yum! Brands, Inc. * 0.07% 1,000 34,400 1,000 34,400 ----------- ----------- ----------- 3,491,434 3,307,369 6,798,803 CONSUMER STAPLES - 7.86% Albertson's, Inc. 0.11% 2,500 56,625 2,500 56,625 Altria Group, Inc. 0.96% 4,400 239,448 4,900 266,658 9,300 506,106 Anheuser-Busch Companies, Inc. 0.47% 2,500 131,700 2,200 115,896 4,700 247,596 Archer-Daniels-Midland Co. 0.16% 3,045 46,345 2,415 36,756 5,460 83,101 Campbell Soup Co. 0.10% 2,000 53,600 2,000 53,600 Coca-Cola Co. (The) 1.23% 6,300 319,725 6,500 329,875 12,800 649,600 Coca-Cola Enterprises Inc. 0.06% 1,500 32,805 1,500 32,805 Colgate-Palmolive Co. 0.20% 1,100 55,055 1,000 50,050 2,100 105,105 ConAgra Foods, Inc. 0.22% 2,500 65,975 1,900 50,141 4,400 116,116 General Mills, Inc. 0.22% 2,500 113,250 2,500 113,250 Gillette Co. (The) 0.39% 3,000 110,190 2,600 95,498 5,600 205,688 H.J. Heinz Co. 0.11% 1,600 58,288 1,600 58,288 Kimberly-Clark Corp. 0.38% 2,500 147,725 900 53,181 3,400 200,906 Kroger Co. (The) * 0.17% 1,300 24,063 3,500 64,785 4,800 88,848 Pepsi Bottling Group, Inc. 0.05% 1,000 24,180 1,000 24,180 PepsiCo, Inc. 0.81% 4,000 186,480 5,100 237,762 9,100 424,242 Procter & Gamble Co. (The) 1.29% 3,000 299,640 3,800 379,544 6,800 679,184 Safeway Inc.* 0.10% 2,500 54,775 2,500 54,775 Sara Lee Corp. 0.05% 1,300 28,223 1,300 28,223 Sysco Corp. 0.41% 2,500 93,075 3,300 122,859 5,800 215,934 Walgreen Co. 0.37% 2,100 76,398 3,200 116,416 5,300 192,814 ----------- ----------- ----------- 2,047,690 2,089,296 4,136,986 -11- ENERGY - 5.79% Anadarko Petroleum Corp. 0.20% 1,200 61,212 900 45,909 2,100 107,121 Baker Hughes Inc. 0.22% 1,100 35,376 2,500 80,400 3,600 115,776 CenterPoint Energy, Inc. 0.07% 1,400 13,566 2,500 24,225 3,900 37,791 ChevronTexaco Corp. 1.26% 4,325 373,637 3,340 288,543 7,665 662,180 ConocoPhillips 0.53% 2,509 164,515 1,728 113,305 4,237 277,820 El Paso Corp. 0.04% 2,500 20,475 2,500 20,475 Exxon Mobil Corp. 2.77% 16,500 676,500 19,000 779,000 35,500 1,455,500 Marathon Oil Corp. 0.09% 1,500 49,635 1,500 49,635 Reliant Resources, Inc. * 0.04% 1,104 8,125 1,971 14,506 3,075 22,631 Schlumberger Ltd. 0.48% 2,600 142,272 2,000 109,440 4,600 251,712 Unocal Corp. 0.08% 1,200 44,196 1,200 44,196 ----------- ----------- 1,589,509 1,455,328 3,044,837 FINANCIALS - 19.16% AFLAC Inc. 0.31% 2,600 94,068 1,900 68,742 4,500 162,810 Allstate Corp. (The) 0.47% 3,300 141,966 2,500 107,550 5,800 249,516 American Express Co. 0.65% 4,100 197,743 3,000 144,690 7,100 342,433 American International Group, Inc. 1.89% 5,989 396,951 9,042 599,304 15,031 996,255 Aon Corp. 0.05% 1,200 28,728 1,200 28,728 Bank of America Corp. 1.25% 4,300 345,849 3,900 313,677 8,200 659,526 Bank of New York Co., Inc. (The) 0.37% 3,400 112,608 2,500 82,800 5,900 195,408 Bank One Corp. 0.47% 2,800 127,652 2,600 118,534 5,400 246,186 BB&T Corp. 0.12% 1,600 61,824 1,600 61,824 Charles Schwab Corp. (The) 0.14% 3,500 41,440 2,500 29,600 6,000 71,040 Citigroup Inc. 2.41% 13,000 631,020 13,100 635,874 26,100 1,266,894 Fannie Mae 0.53% 1,500 112,590 2,200 165,132 3,700 277,722 Fifth Third Bancorp 0.45% 2,000 118,200 2,000 118,200 4,000 236,400 FleetBoston Financial Corp. 0.54% 4,100 178,965 2,400 104,760 6,500 283,725 Franklin Resources, Inc. 0.12% 1,200 62,472 1,200 62,472 Freddie Mac 0.45% 1,600 93,312 2,500 145,800 4,100 239,112 Goldman Sachs Group, Inc. (The) 0.53% 1,500 148,095 1,300 128,349 2,800 276,444 Hartford Financial Services Group, Inc. (The) 0.11% 1,000 59,030 1,000 59,030 HSBC Holdings plc, ADR 0.34% 1,337 105,382 963 75,904 2,300 181,286 J. P. Morgan Chase & Co. 0.85% 6,200 227,726 6,000 220,380 12,200 448,106 John Hancock Financial Services, Inc. 0.18% 2,500 93,750 2,500 93,750 Lehman Brothers Holdings Inc. 0.16% 1,100 84,942 1,100 84,942 Marsh & McLennan Companies, Inc. 0.60% 2,600 124,514 4,000 191,560 6,600 316,074 MBNA Corp. 0.24% 2,100 52,185 3,000 74,550 5,100 126,735 Mellon Financial Corp. 0.26% 2,500 80,275 1,800 57,798 4,300 138,073 -12- Merrill Lynch & Co., Inc. 0.64% 3,700 217,005 2,000 117,300 5,700 334,305 MetLife, Inc. 0.40% 3,500 117,845 2,700 90,909 6,200 208,754 Morgan Stanley 0.66% 2,500 144,675 3,500 202,545 6,000 347,220 National City Corp. 0.30% 2,500 84,850 2,200 74,668 4,700 159,518 Northern Trust Corp. 0.09% 1,000 46,420 1,000 46,420 PNC Financial Services Group 0.11% 1,100 60,203 1,100 60,203 Prudential Financial, Inc. 0.20% 2,500 104,425 2,500 104,425 St. Paul Companies, Inc. (The) 0.08% 1,000 39,650 1,000 39,650 State Street Corp. 0.10% 1,000 52,080 1,000 52,080 SunTrust Banks, Inc. 0.15% 1,100 78,650 1,100 78,650 Travelers Property Casualty Corp., Class A 0.05% 712 11,947 738 12,383 1,450 24,330 Travelers Property Casualty Corp., Class B 0.10% 1,464 24,844 1,517 25,743 2,981 50,587 U.S. Bancorp 0.59% 6,201 184,666 4,200 125,076 10,401 309,742 UnumProvident Corp. 0.03% 1,100 17,347 1,100 17,347 Wachovia Corp. 0.58% 3,000 139,770 3,600 167,724 6,600 307,494 Washington Mutual, Inc. 0.45% 2,800 112,336 3,150 126,378 5,950 238,714 Wells Fargo & Co. 1.14% 5,400 318,006 4,800 282,672 10,200 600,678 ----------- ----------- ----------- 5,118,824 4,965,784 10,084,608 HEALTHCARE - 12.28% Abbott Laboratories 0.62% 3,000 139,800 4,000 186,400 7,000 326,200 Allergan, Inc. 0.15% 1,000 76,810 1,000 76,810 Amgen Inc. * 0.92% 4,300 265,740 3,500 216,300 7,800 482,040 Baxter International Inc. 0.31% 2,800 85,456 2,500 76,300 5,300 161,756 Becton, Dickinson & Co. 0.09% 1,200 49,368 1,200 49,368 Boston Scientific Corp. * 0.35% 2,000 73,520 3,000 110,280 5,000 183,800 Bristol-Myers Squibb Co. 0.59% 6,400 183,040 4,500 128,700 10,900 311,740 Cardinal Health, Inc. 0.34% 1,950 119,262 1,000 61,160 2,950 180,422 Eli Lilly & Co. 0.78% 2,800 196,924 3,000 210,990 5,800 407,914 Guidant Corp. 0.16% 1,400 84,280 1,400 84,280 HCA Inc. 0.29% 1,500 64,440 2,000 85,920 3,500 150,360 HEALTHSOUTH Corp. * 0.04% 1,800 8,244 2,500 11,450 4,300 19,694 Johnson & Johnson 1.47% 7,500 387,450 7,500 387,450 15,000 774,900 McKesson Corp. 0.14% 1,300 41,808 1,000 32,160 2,300 73,968 Medco Health Solutions, Inc. * 0.11% 964 32,766 723 24,575 1,687 57,341 Medtronic, Inc. 0.77% 4,000 194,440 4,300 209,023 8,300 403,463 Merck & Co. Inc. 1.01% 5,500 254,100 6,000 277,200 11,500 531,300 Pfizer Inc. 2.71% 19,860 701,654 20,500 724,265 40,360 1,425,919 Schering-Plough Corp. 0.22% 4,200 73,038 2,500 43,475 6,700 116,513 Tenet Heathcare Corp. * 0.07% 2,250 36,113 2,250 36,113 UnitedHealth Group Inc. 0.55% 2,000 116,360 3,000 174,540 5,000 290,900 Wyeth 0.61% 4,200 178,290 3,300 140,085 7,500 318,375 ----------- ----------- ----------- 3,362,903 3,100,273 6,463,176 -13- INDUSTRIALS - 11.06% 3M Co. 0.71% 2,400 204,072 2,000 170,060 4,400 374,132 Automatic Data Processing, Inc. 0.37% 2,900 114,869 2,000 79,220 4,900 194,089 Boeing Co. (The) 0.45% 2,600 109,564 3,000 126,420 5,600 235,984 Caterpillar Inc. 0.46% 1,600 132,832 1,300 107,926 2,900 240,758 Cendant Corp. * 0.25% 3,300 73,491 2,700 60,129 6,000 133,620 Concord EFS, Inc. * 0.14% 2,500 37,100 2,500 37,100 5,000 74,200 CSX Corp. 0.07% 1,000 35,940 1,000 35,940 Emerson Electric Co. 0.43% 2,000 129,500 1,500 97,125 3,500 226,625 FedEx Corp. 0.26% 1,000 67,500 1,000 67,500 2,000 135,000 General Dynamics Corp. 0.10% 600 54,234 600 54,234 General Electric Co. 3.25% 26,200 811,676 29,000 898,420 55,200 1,710,096 Honeywell International Inc. 0.30% 2,000 66,860 2,800 93,604 4,800 160,464 Illinois Tool Works Inc. 0.38% 1,400 117,474 1,000 83,910 2,400 201,384 IMS Health Inc. 0.07% 1,400 34,804 1,400 34,804 Lockheed Martin Corp. 0.39% 2,500 128,500 1,500 77,100 4,000 205,600 Masco Corp. 0.22% 2,500 68,525 1,700 46,597 4,200 115,122 Paychex, Inc. 0.30% 1,700 63,240 2,500 93,000 4,200 156,240 Raytheon Co. 0.09% 1,600 48,064 1,600 48,064 Southwest Airlines Co. 0.20% 3,750 60,525 2,700 43,578 6,450 104,103 Transocean Inc. * 0.11% 2,500 60,025 2,500 60,025 Tyco International Ltd. 0.67% 6,397 169,521 7,000 185,500 13,397 355,021 Union Pacific Corp. 0.26% 1,000 69,480 1,000 69,480 2,000 138,960 United Parcel Service, Inc., Class B 0.85% 2,500 186,375 3,500 260,925 6,000 447,300 United Technologies Corp. 0.49% 100 94,770 1,700 161,109 1,800 255,879 Waste Management, Inc. 0.24% 2,500 74,000 1,700 50,320 4,200 124,320 ----------- ----------- ----------- 2,952,916 2,869,048 5,821,964 INFORMATION TECHNOLOGY - 16.21% Adobe Systems Inc. 0.08% 1,100 43,230 1,100 43,230 Agere Systems Inc., Class A * 0.00% 125 381 115 351 240 732 Agere Systems Inc., Class B * 0.03% 3,068 8,897 2,830 8,207 5,898 17,104 Agilent Technologies, Inc. 0.18% 1,500 43,860 1,800 52,632 3,300 96,492 Altera Corp. * 0.15% 1,900 43,130 1,500 34,050 3,400 77,180 Analog Devices, Inc. 0.23% 1,700 77,605 1,000 45,650 2,700 123,255 Apple Computer, Inc. * 0.06% 1,500 32,055 1,500 32,055 Applied Materials, Inc. * 0.33% 4,900 110,005 2,900 65,105 7,800 175,110 Cisco Systems, Inc. * 1.68% 19,500 473,655 16,900 410,501 36,400 884,156 Computer Associates International, Inc. 0.14% 2,700 73,818 2,700 73,818 Corning Inc. * 0.06% 3,000 31,290 3,000 31,290 Dell Inc. * 0.72% 4,700 159,612 6,500 220,740 11,200 380,352 Electronic Arts Inc. * 0.18% 2,000 95,560 2,000 95,560 -14- Electronic Data Systems Corp. 0.16% 2,500 61,350 1,000 24,540 3,500 85,890 EMC Corp. * 0.28% 4,500 58,140 7,000 90,440 11,500 148,580 First Data Corp. 0.39% 5,000 205,450 5,000 205,450 Hewlett-Packard Co. 0.69% 8,100 186,057 7,800 179,166 15,900 365,223 Intel Corp. 2.27% 17,600 566,720 19,500 627,900 37,100 1,194,620 International Business Machines Corp. 1.92% 5,500 509,740 5,400 500,472 10,900 1,010,212 Linear Technology Corp. 0.20% 1,500 63,105 1,000 42,070 2,500 105,175 LSI Logic Corp. * 0.03% 1,500 13,305 1,500 13,305 Maxim Integrated Products, Inc. 0.22% 1,300 64,740 1,000 49,800 2,300 114,540 Micron Technology, Inc. * 0.13% 2,600 35,022 2,500 33,675 5,100 68,697 Microsoft Corp. 3.05% 28,100 773,874 30,200 831,708 58,300 1,605,582 Motorola, Inc. 0.37% 7,100 99,897 6,600 92,862 13,700 192,759 NVIDA Corp. * 0.04% 1,000 23,250 1,000 23,250 Oracle Corp. * 0.76% 17,800 234,960 12,300 162,360 30,100 397,320 QUALCOMM Inc. 0.41% 1,500 80,895 2,500 134,825 4,000 215,720 Sanmina-SCI Corp. * 0.06% 2,500 31,525 2,500 31,525 Siebel Systems, Inc. * 0.07% 2,500 34,675 2,500 34,675 Solectron Corp. * 0.08% 3,700 21,867 3,000 17,730 6,700 39,597 Sun Microsystems, Inc. * 0.15% 10,000 44,900 7,500 33,675 17,500 78,575 SunGard Data Systems, Inc. * 0.13% 2,500 69,275 2,500 69,275 Texas Instruments Inc. 0.58% 5,400 158,652 4,900 143,962 10,300 302,614 Yahoo! Inc. * 0.38% 2,500 112,925 1,900 85,823 4,400 198,748 ----------- ----------- ----------- 4,340,482 4,191,184 8,531,666 MATERIALS - 2.44% Air Products & Chemicals, Inc. 0.10% 1,000 52,830 1,000 52,830 Alcoa Inc. 0.53% 4,200 159,600 3,100 117,800 7,300 277,400 Dow Chemical Co. (The) 0.43% 2,700 112,239 2,700 112,239 5,400 224,478 E. I. du Pont de Nemours & Co. 0.48% 3,300 151,437 2,200 100,958 5,500 252,395 Georgia-Pacific Corp. 0.12% 1,000 30,670 1,000 30,670 2,000 61,340 International Paper Co. 0.37% 2,500 107,775 2,000 86,220 4,500 193,995 Praxair, Inc. 0.22% 3,000 114,600 3,000 114,600 Rohm & Haas Co. 0.08% 1,000 42,710 1,000 42,710 Weyerhaeuser Co. 0.12% 1,000 64,000 1,000 64,000 ----------- ----------- ----------- 604,431 679,317 1,283,748 TELECOMMUNICATION SERVICES - 3.55% ALLTEL Corp 0.13% 1,500 69,870 1,500 69,870 AT&T Corp. 0.18% 2,260 45,878 2,400 48,720 4,660 94,598 AT&T Wireless Services Inc. * 0.20% 8,534 68,187 4,522 36,131 13,056 104,318 BellSouth Corp. 0.67% 6,000 169,800 6,500 183,950 12,500 353,750 Lucent Technologies Inc. * 0.12% 11,600 32,944 10,700 30,388 22,300 63,332 Nextel Communications, Inc., Class A * 0.13% 2,500 70,150 2,500 70,150 SBC Communications Inc. 0.54% 8,200 213,774 2,500 70,150 10,700 283,924 Sprint Corp. (FON Group) 0.52% 4,000 65,680 7,900 205,953 11,900 271,633 Sprint Corp. (PCS Group) * 0.11% 1,800 10,116 3,000 49,260 4,800 59,376 Verizon Communications Inc. 0.94% 6,200 217,496 7,900 277,132 14,100 494,628 ----------- ----------- ----------- 963,895 901,684 1,865,579 -15- UTILITIES - 2.01% American Electric Power Co., Inc. 0.16% 1,500 45,765 1,200 36,612 2,700 82,377 Dominion Resources, Inc. 0.25% 1,100 70,213 1,000 63,830 2,100 134,043 Duke Energy Corp. 0.21% 2,500 51,125 2,800 57,260 5,300 108,385 Edison International * 0.17% 1,500 32,895 2,500 54,825 4,000 87,720 Exelon Corp. 0.19% 1,500 99,540 1,500 99,540 FirstEnergy Corp. 0.17% 2,500 88,000 2,500 88,000 FPL Group, Inc. 0.12% 1,000 65,420 1,000 65,420 Progress Energy, Inc. 0.09% 1,000 45,260 1,000 45,260 Public Service Enterprises Group Inc, 0.08% 1,000 43,800 1,000 43,800 Scottish Power plc, ADR 0.21% 4,000 108,720 4,000 108,720 Southern Co. (The) 0.14% 2,400 72,600 2,400 72,600 TXU Corp. 0.10% 1,200 28,464 1,000 23,720 2,200 52,184 Xcel Energy, Inc. 0.13% 1,600 27,168 2,500 42,450 4,100 69,618 ----------- ----------- ----------- 509,650 548,017 1,057,667 TOTAL EQUITY SECURITIES 99.51% 25,929,314 26,435,672 52,364,986 ----------- ----------- ----------- SHORT-TERM INVESTMENTS - 2.30% REPURCHASE AGREEMENTS - 2.30% Bear, Stearns & Co. Inc. 0.26% 138,234 138,234 138,234 138,234 (Agreement dated 12/31/03 to be repurchased at $138,241), 0.85%, 01/02/04 Bear, Stearns & Co. Inc. 0.83% 438,900 438,900 438,900 438,900 (Agreement dated 12/31/03 to be repurchased at $438,926), 1.06%**, 01/02/04 *** Bear, Stearns & Co. Inc. 0.00% 2,278 2,278 2,278 2,278 (Agreement dated 12/31/03 to be repurchased at $2,278), 0.94%**, 01/02/04 *** -16- Bear, Stearns & Co. Inc. 0.27% 139,977 139,977 139,977 139,977 (Agreement dated 12/31/03 to be repurchased at $139,984), 0.85%, 01/02/04 Bear, Stearns & Co. Inc. 0.81% 425,588 425,588 425,588 425,588 (Agreement dated 12/31/03 to be repurchased at $425,613), 1.06%**, 01/02/04 *** Bear, Stearns & Co. Inc. 0.12% 65,644 65,644 65,644 65,644 (Agreement dated 12/31/03 to be repurchased at $65,647), 0.94%**, 01/02/04 *** ----------- ----------- ----------- TOTAL SHORT-TERM INVESTMENTS 2.30% 579,412 631,209 1,210,621 ----------- ----------- ----------- TOTAL INVESTMENTS AT MARKET 101.81% 26,508,726 27,066,881 53,575,607 ----------- ----------- ----------- TOTAL INVESTMENTS AT COST 29,716,897 24,952,427 54,669,324 ----------- ----------- ----------- @ No adjustments are shown to the unaudited pro forma combined portfolio of investments due to the fact that upon consummation of the merger, securities would need to be sold in order for Acquiring Fund to comply with its prospectus restrictions. The foregoing sentence shall not restrict in any way the ability of the investment adviser of any of the funds from buying or selling securities in the normal course of such fund's business and operations. * Non-income producing securities ** Stated interest rate, before rebate earned by borrower of securities on loan *** Represents investment purchased with cash collateral received for securities on loan. ADR American Depositary Receipt -17- ------------------------------------------------------------------------------------------------------------------------------------ CORNERSTONE STRATEGIC VALUE FUND, INC. Pro Forma Portfolio of Investments (@) December 31, 2003 (Unaudited) TARGET FUNDS ACQUIRING FUND Pro Forma % of PGF MGC CLM Combined Fund Net Shares/ Market Shares/ Market Shares/ Market Shares/ Market Assets Par Value ($) Par Value ($) Par Value Par Value ($) ---------------------------------------------------------------------------------------------------- EQUITY SECURITIES 95.21% CLOSED-END DOMESTIC FUNDS - 2.04% Adams Express Co. 0.38% 49,500 614,295 49,500 614,295 General American Investor Co. Inc. 0.19% 10,500 312,165 10,500 312,165 Salomon Brothers Fund, Inc. (The) 0.14% 18,400 221,352 18,400 221,352 Tri-Continental Corp. 0.78% 38,000 623,200 39,000 639,600 77,000 1,262,800 Zweig Fund, Inc. 0.54% 66,200 324,380 110,400 540,960 176,600 865,340 ---------- ------------ ---------- ------------- 947,580 0 2,328,372 3,275,952 CONSUMER DISCRETIONARY - 13.68% Bed Bath & Beyond Inc. * 0.03% 1,000 43,350 1,000 43,350 Best Buy Co., Inc. 0.07% 1,250 65,300 1,000 52,240 2,250 117,540 Carnival Corp. 0.12% 2,700 107,271 2,100 83,433 4,800 190,704 Carter's, Inc.* 0.04% 2,500 63,625 2,500 63,625 Circuit City Stores, Inc. 0.01% 1,000 10,130 1,000 10,130 Clear Channel Communications, Inc. 0.14% 2,700 126,441 2,100 98,343 4,800 224,784 Comcast Corp., Class A * 0.15% 3,655 120,140 3,882 127,601 7,537 247,741 Comcast Corp., Special Class A* 0.08% 4,100 128,248 4,100 128,248 Costco Wholesale Corp. * 0.03% 1,500 55,770 1,500 55,770 CVS Corp. 0.06% 1,000 36,120 1,500 54,180 2,500 90,300 Delphi Corp. 0.03% 2,600 26,546 2,000 20,420 4,600 46,966 Eastman Kodak Co. 0.02% 1,400 35,938 1,400 35,938 Federated Department Stores, Inc. 0.03% 1,000 47,130 1,000 47,130 Ford Motor Co. 0.12% 5,800 92,800 6,500 104,000 12,300 196,800 Fortune Brands, Inc. 0.04% 1,000 71,490 1,000 71,490 Furniture Brands International, Inc. 1.82% 100,100 2,935,933 100,100 2,935,933 Gannett Co., Inc. 0.06% 1,000 89,160 1,000 89,160 Gap, Inc. (The) 0.08% 2,500 58,025 2,700 62,667 5,200 120,692 General Motors Corp. 0.15% 2,600 138,840 1,900 101,460 4,500 240,300 Gildan Activewear Inc., Class A* 0.99% 51,500 1,590,320 51,500 1,590,320 Goodyear Tire & Rubber Co. (The) * 0.01% 2,500 19,650 2,500 19,650 Harley-Davidson, Inc. 0.07% 1,400 66,542 1,000 47,530 2,400 114,072 Hilton Hotels Corp. 0.03% 1,700 29,121 1,500 25,695 3,200 54,816 -18- Home Depot, Inc. (The) 0.30% 7,500 266,175 6,100 216,489 13,600 482,664 Kohl's Corp. * 0.06% 1,000 44,940 1,000 44,940 2,000 89,880 Limited Brands 0.03% 2,500 45,075 2,500 45,075 Lowe's Companies, Inc. 0.17% 2,500 138,475 2,500 138,475 5,000 276,950 Marriott International, Inc., Class A 0.06% 1,100 50,820 1,000 46,200 2,100 97,020 Martek Biosciences Corp.* 1.23% 30,500 1,981,585 30,500 1,981,585 Mattel, Inc. 0.02% 1,500 28,905 1,500 28,905 May Department Stores Co. (The) 0.04% 1,400 40,698 1,000 29,070 2,400 69,768 McDonald's Corp. 0.09% 4,000 99,320 2,100 52,143 6,100 151,463 Monsanto Co. 0.01% 580 16,692 580 16,692 Multimedia Games, Inc.* 1.10% 43,000 1,767,300 43,000 1,767,300 NIKE, Inc., Class B 0.10% 1,300 88,998 1,000 68,460 2,300 157,458 Omnicom Group Inc. 0.09% 600 52,398 1,000 87,330 1,600 139,728 Reebok International Ltd. 0.04% 1,500 58,980 1,500 58,980 Sears, Roebuck & Co. 0.05% 1,600 72,784 1,600 72,784 Staples, Inc. * 0.05% 1,500 40,950 1,500 40,950 3,000 81,900 Starbucks Corp. * 0.06% 1,700 56,202 1,200 39,672 2,900 95,874 Target Corp. 0.11% 1,600 61,440 3,200 122,880 4,800 184,320 The Cheesecake Factory Inc.* 1.03% 37,700 1,659,931 37,700 1,659,931 Thor Industries, Inc. 1.01% 28,800 1,619,136 28,800 1,619,136 Time Warner Inc. * 0.28% 14,250 256,358 10,500 188,895 24,750 445,253 TJX Companies, Inc. (The) 0.03% 2,500 55,125 2,500 55,125 Toys "R" Us, Inc.* 0.01% 1,000 12,640 1,000 12,640 Tractor Supply Company* 0.46% 19,200 746,688 19,200 746,688 United Natural Foods, Inc.* 1.77% 79,200 2,844,072 79,200 2,844,072 Viacom Inc., non-voting Class B 0.31% 5,400 239,652 6,000 266,280 11,400 505,932 Wal-Mart Stores, Inc. 0.80% 11,000 583,550 13,300 705,565 24,300 1,289,115 Walt Disney Co. (The) 0.16% 6,500 151,645 4,700 109,651 11,200 261,296 Yum! Brands, Inc. * 0.02% 1,000 34,400 1,000 34,400 ---------- ------------ ---------- ------------- 3,491,434 15,208,590 3,307,369 22,007,393 CONSUMER STAPLES - 5.22% Albertson's, Inc. 0.04% 2,500 56,625 2,500 56,625 Altria Group, Inc. 0.31% 4,400 239,448 4,900 266,658 9,300 506,106 Anheuser-Busch Companies, Inc. 0.15% 2,500 131,700 2,200 115,896 4,700 247,596 Archer-Daniels-Midland Co. 0.05% 3,045 46,345 2,415 36,756 5,460 83,101 Campbell Soup Co. 0.03% 2,000 53,600 2,000 53,600 Coca-Cola Co. (The) 0.40% 6,300 319,725 6,500 329,875 12,800 649,600 Coca-Cola Enterprises Inc. 0.02% 1,500 32,805 1,500 32,805 Colgate-Palmolive Co. 0.07% 1,100 55,055 1,000 50,050 2,100 105,105 ConAgra Foods, Inc. 0.07% 2,500 65,975 1,900 50,141 4,400 116,116 General Mills, Inc. 0.07% 2,500 113,250 2,500 113,250 Gillette Co. (The) 0.13% 3,000 110,190 2,600 95,498 5,600 205,688 -19- H.J. Heinz Co. 0.04% 1,600 58,288 1,600 58,288 Kimberly-Clark Corp. 0.12% 2,500 147,725 900 53,181 3,400 200,906 Kroger Co. (The) * 0.06% 1,300 24,063 3,500 64,785 4,800 88,848 Panera Bread Co. Class A* 1.04% 42,300 1,672,119 42,300 1,672,119 Pepsi Bottling Group, Inc. 0.02% 1,000 24,180 1,000 24,180 PepsiCo, Inc. 0.26% 4,000 186,480 5,100 237,762 9,100 424,242 Performance Food Group Co.* 0.88% 39,300 1,421,481 39,300 1,421,481 Philadelphia Suburban Corp. 0.73% 53,077 1,173,002 53,077 1,173,002 Procter & Gamble Co. (The) 0.42% 3,000 299,640 3,800 379,544 6,800 679,184 Safeway Inc.* 0.03% 2,500 54,775 2,500 54,775 Sara Lee Corp. 0.02% 1,300 28,223 1,300 28,223 Sysco Corp. 0.13% 2,500 93,075 3,300 122,859 5,800 215,934 Walgreen Co. 0.12% 2,100 76,398 3,200 116,416 5,300 192,814 ---------- ------------ ------------- 2,047,690 4,266,602 2,089,296 8,403,588 ENERGY - 5.40% Anadarko Petroleum Corp. 0.07% 1,200 61,212 900 45,909 2,100 107,121 Baker Hughes Inc. 0.07% 1,100 35,376 2,500 80,400 3,600 115,776 CenterPoint Energy, Inc. 0.02% 1,400 13,566 2,500 24,225 3,900 37,791 ChevronTexaco Corp. 0.41% 4,325 373,637 3,340 288,543 7,665 662,180 ConocoPhillips 0.17% 2,509 164,515 1,728 113,305 4,237 277,820 El Paso Corp. 0.01% 2,500 20,475 2,500 20,475 Exxon Mobil Corp. 0.90% 16,500 676,500 19,000 779,000 35,500 1,455,500 FMC Technologies, Inc.* 1.53% 105,800 2,465,140 105,800 2,465,140 Marathon Oil Corp. 0.03% 1,500 49,635 1,500 49,635 Reliant Resources, Inc. * 0.01% 1,104 8,125 1,971 14,506 3,075 22,631 Schlumberger Ltd. 0.16% 2,600 142,272 2,000 109,440 4,600 251,712 Ultra Petroleum Corp.* 1.23% 80,300 1,976,986 80,300 1,976,986 Unocal Corp. 0.00% 0 0 Western Gas Resources, Inc. 0.75% 25,400 1,200,150 25,400 1,200,150 Unocal Corp. 0.03% 1,200 44,196 1,200 44,196 ---------- ------------ ---------- ------------- 1,589,509 5,642,276 1,455,328 8,687,113 FINANCIALS - 12.15% Affiliated Managers Group, Inc.* 1.75% 40,400 2,811,436 40,400 2,811,436 AFLAC Inc. 0.10% 2,600 94,068 1,900 68,742 4,500 162,810 Allstate Corp. (The) 0.16% 3,300 141,966 2,500 107,550 5,800 249,516 American Express Co. 0.21% 4,100 197,743 3,000 144,690 7,100 342,433 American International Group, Inc. 0.62% 5,989 396,951 9,042 599,304 15,031 996,255 Aon Corp. 0.02% 1,200 28,728 1,200 28,728 Bank of America Corp. 0.41% 4,300 345,849 3,900 313,677 8,200 659,526 Bank of New York Co., Inc. (The) 0.12% 3,400 112,608 2,500 82,800 5,900 195,408 Bank One Corp. 0.15% 2,800 127,652 2,600 118,534 5,400 246,186 -20- BB&T Corp. 0.04% 1,600 61,824 1,600 61,824 Charles Schwab Corp. (The) 0.04% 3,500 41,440 2,500 29,600 6,000 71,040 Citigroup Inc. 0.79% 13,000 631,020 13,100 635,874 26,100 1,266,894 Direct General Corp. 0.84% 41,000 1,357,100 41,000 1,357,100 Fannie Mae 0.17% 1,500 112,590 2,200 165,132 3,700 277,722 Fifth Third Bancorp 0.15% 2,000 118,200 2,000 118,200 4,000 236,400 First Niagara Financial Group, Inc. 0.78% 84,000 1,252,440 84,000 1,252,440 FleetBoston Financial Corp. 0.18% 4,100 178,965 2,400 104,760 6,500 283,725 Franklin Resources, Inc. 0.04% 1,200 62,472 1,200 62,472 Freddie Mac 0.15% 1,600 93,312 2,500 145,800 4,100 239,112 Goldman Sachs Group, Inc. (The) 0.17% 1,500 148,095 1,300 128,349 2,800 276,444 Hartford Financial Services Group, Inc. (The) 0.04% 1,000 59,030 1,000 59,030 HSBC Holdings plc, ADR 0.11% 1,337 105,382 963 75,904 2,300 181,286 J. P. Morgan Chase & Co. 0.28% 6,200 227,726 6,000 220,380 12,200 448,106 John Hancock Financial Services, Inc. 0.06% 2,500 93,750 2,500 93,750 Lehman Brothers Holdings Inc. 0.05% 1,100 84,942 1,100 84,942 Marsh & McLennan Companies, Inc. 0.20% 2,600 124,514 4,000 191,560 6,600 316,074 MBNA Corp. 0.08% 2,100 52,185 3,000 74,550 5,100 126,735 Mellon Financial Corp. 0.09% 2,500 80,275 1,800 57,798 4,300 138,073 Merrill Lynch & Co., Inc. 0.21% 3,700 217,005 2,000 117,300 5,700 334,305 MetLife, Inc. 0.13% 3,500 117,845 2,700 90,909 6,200 208,754 Morgan Stanley 0.22% 2,500 144,675 3,500 202,545 6,000 347,220 National City Corp. 0.10% 2,500 84,850 2,200 74,668 4,700 159,518 National Financial Partners Corp. 0.69% 40,500 1,115,775 40,500 1,115,775 Northern Trust Corp. 0.03% 1,000 46,420 1,000 46,420 Platinum Underwriters Holdings, Ltd. 1.35% 72,600 2,178,000 72,600 2,178,000 PNC Financial Services Group 0.04% 1,100 60,203 1,100 60,203 Prudential Financial, Inc. 0.06% 2,500 104,425 2,500 104,425 Scottish Re Group Ltd. 0.30% 22,900 475,862 22,900 475,862 St. Paul Companies, Inc. (The) 0.02% 1,000 39,650 1,000 39,650 State Street Corp. 0.03% 1,000 52,080 1,000 52,080 SunTrust Banks, Inc. 0.05% 1,100 78,650 1,100 78,650 The First Marblehead Corp. * 0.17% 12,600 275,688 12,600 275,688 Travelers Property Casualty Corp., Class A 0.02% 712 11,947 738 12,383 1,450 24,330 Travelers Property Casualty Corp., Class B 0.03% 1,464 24,844 1,517 25,743 2,981 50,587 U.S. Bancorp 0.19% 6,201 184,666 4,200 125,076 10,401 309,742 UnumProvident Corp. 0.01% 1,100 17,347 1,100 17,347 Wachovia Corp. 0.19% 3,000 139,770 3,600 167,724 6,600 307,494 Washington Mutual, Inc. 0.15% 2,800 112,336 3,150 126,378 5,950 238,714 Wells Fargo & Co. 0.37% 5,400 318,006 4,800 282,672 10,200 600,678 ---------- ------------ ---------- ------------- 5,118,824 9,466,301 4,965,784 19,550,909 -21- HEALTHCARE - 12.52% Abbott Laboratories 0.20% 3,000 139,800 4,000 186,400 7,000 326,200 Allergan, Inc. 0.05% 1,000 76,810 1,000 76,810 Amgen Inc. * 0.30% 4,300 265,740 3,500 216,300 7,800 482,040 Baxter International Inc. 0.10% 2,800 85,456 2,500 76,300 5,300 161,756 Becton, Dickinson & Co. 0.03% 1,200 49,368 1,200 49,368 Boston Scientific Corp. * 0.11% 2,000 73,520 3,000 110,280 5,000 183,800 Bristol-Myers Squibb Co. 0.19% 6,400 183,040 4,500 128,700 10,900 311,740 Cardinal Health, Inc. 0.11% 1,950 119,262 1,000 61,160 2,950 180,422 Cooper Companies, Inc 1.76% 60,000 2,827,800 60,000 2,827,800 Edwards Lifesciences 1.68% 89,900 2,704,192 89,900 2,704,192 Eli Lilly & Co. 0.25% 2,800 196,924 3,000 210,990 5,800 407,914 Guidant Corp. 0.05% 1,400 84,280 1,400 84,280 HCA Inc. 0.09% 1,500 64,440 2,000 85,920 3,500 150,360 HEALTHSOUTH Corp. * 0.01% 1,800 8,244 2,500 11,450 4,300 19,694 IDEXX Laboratories, Inc.* 1.05% 36,400 1,684,592 36,400 1,684,592 Integra Lifesciences Holdings* 1.41% 79,500 2,276,085 79,500 2,276,085 Johnson & Johnson 0.48% 7,500 387,450 7,500 387,450 15,000 774,900 McKesson Corp. 0.05% 1,300 41,808 1,000 32,160 2,300 73,968 Medco Health Solutions, Inc. * 0.04% 964 32,766 723 24,575 1,687 57,341 Medtronic, Inc. 0.25% 4,000 194,440 4,300 209,023 8,300 403,463 Merck & Co. Inc. 0.33% 5,500 254,100 6,000 277,200 11,500 531,300 Neurocrine Biosciences, Inc. * 1.07% 31,700 1,728,918 31,700 1,728,918 NPS Pharmaceuticals, Inc.* 1.53% 80,000 2,459,200 80,000 2,459,200 Pfizer Inc. 0.89% 19,860 701,654 20,500 724,265 40,360 1,425,919 Schering-Plough Corp. 0.07% 4,200 73,038 2,500 43,475 6,700 116,513 Tenet Heathcare Corp. * 0.02% 2,250 36,113 2,250 36,113 UnitedHealth Group Inc. 0.18% 2,000 116,360 3,000 174,540 5,000 290,900 Wyeth 0.20% 4,200 178,290 3,300 140,085 7,500 318,375 ------------ ---------- ------------- 3,362,903 13,680,787 3,100,273 20,143,963 INDUSTRIALS - 12.57% 3M Co. 0.23% 2,400 204,072 2,000 170,060 4,400 374,132 Automatic Data Processing, Inc. 0.12% 2,900 114,869 2,000 79,220 4,900 194,089 Boeing Co. (The) 0.15% 2,600 109,564 3,000 126,420 5,600 235,984 Caterpillar Inc. 0.15% 1,600 132,832 1,300 107,926 2,900 240,758 Cendant Corp. * 0.08% 3,300 73,491 2,700 60,129 6,000 133,620 Central Freight Lines, Inc.* 0.04% 3,300 58,575 3,300 58,575 Compass Minerals International, Inc.* 0.47% 52,700 752,556 52,700 752,556 Concord EFS, Inc. * 0.05% 2,500 37,100 2,500 37,100 5,000 74,200 CSX Corp. 0.02% 1,000 35,940 1,000 35,940 DSP Group, Inc.* 2.10% 135,600 3,377,796 135,600 3,377,796 EDO Corp. 0.87% 56,500 1,392,725 56,500 1,392,725 Emerson Electric Co. 0.14% 2,000 129,500 1,500 97,125 3,500 226,625 -22- FedEx Corp. 0.08% 1,000 67,500 1,000 67,500 2,000 135,000 General Dynamics Corp. 0.03% 600 54,234 600 54,234 General Electric Co. 1.06% 26,200 811,676 29,000 898,420 55,200 1,710,096 Heartland Express, Inc. 0.94% 62,337 1,507,932 62,337 1,507,932 Honeywell International Inc. 0.10% 2,000 66,860 2,800 93,604 4,800 160,464 Illinois Tool Works Inc. 0.13% 1,400 117,474 1,000 83,910 2,400 201,384 IMS Health Inc. 0.02% 1,400 34,804 1,400 34,804 Lockheed Martin Corp. 0.13% 2,500 128,500 1,500 77,100 4,000 205,600 Masco Corp. 0.07% 2,500 68,525 1,700 46,597 4,200 115,122 Overnight Corp.* 0.08% 5,600 127,400 5,600 127,400 Paychex, Inc. 0.10% 1,700 63,240 2,500 93,000 4,200 156,240 Quanta Services, Inc.* 0.32% 70,000 511,000 70,000 511,000 Raytheon Co. 0.03% 1,600 48,064 1,600 48,064 Shuffle Master, Inc.* 1.58% 73,400 2,541,108 73,400 2,541,108 Southwest Airlines Co. 0.06% 3,750 60,525 2,700 43,578 6,450 104,103 Swift Transportation Co., Inc.* 0.88% 67,100 1,410,442 67,100 1,410,442 Transocean Inc. * 0.04% 2,500 60,025 2,500 60,025 Tyco International Ltd. 0.22% 6,397 169,521 7,000 185,500 13,397 355,021 Union Pacific Corp. 0.09% 1,000 69,480 1,000 69,480 2,000 138,960 United Parcel Service, Inc., Class B 0.28% 2,500 186,375 3,500 260,925 6,000 447,300 United Technologies Corp. 0.16% 100 94,770 1,700 161,109 1,800 255,879 Universal Technical Institute Inc.* 0.15% 8,200 246,000 8,200 246,000 USF Corp. 1.54% 72,600 2,482,194 72,600 2,482,194 Waste Management, Inc. 0.08% 2,500 74,000 1,700 50,320 4,200 124,320 ---------- ------------ ---------- ------------- 2,952,916 14,407,728 2,869,048 20,229,692 INFORMATION TECHNOLOGY - 21.81% Adobe Systems Inc. 0.03% 1,100 43,230 1,100 43,230 Agere Systems Inc., Class A * 0.00% 125 381 115 351 240 732 Agere Systems Inc., Class B * 0.01% 3,068 8,897 2,830 8,207 5,898 17,104 Agilent Technologies, Inc. 0.06% 1,500 43,860 1,800 52,632 3,300 96,492 Altera Corp. * 0.05% 1,900 43,130 1,500 34,050 3,400 77,180 Analog Devices, Inc. 0.08% 1,700 77,605 1,000 45,650 2,700 123,255 Apple Computer, Inc. * 0.02% 1,500 32,055 1,500 32,055 Applied Films Corp 1.27% 62,000 2,047,240 62,000 2,047,240 Applied Materials, Inc. * 0.11% 4,900 110,005 2,900 65,105 7,800 175,110 Avocent Corporation 1.60% 70,500 2,574,660 70,500 2,574,660 Caci International Inc. Class A 1.63% 54,100 2,630,342 54,100 2,630,342 Callidus Software* 0.04% 3,300 58,377 3,300 58,377 Cisco Systems, Inc. * 0.55% 19,500 473,655 16,900 410,501 36,400 884,156 Computer Associates International, Inc. 0.05% 2,700 73,818 2,700 73,818 Corning Inc. * 0.02% 3,000 31,290 3,000 31,290 Dell Inc. * 0.24% 4,700 159,612 6,500 220,740 11,200 380,352 -23- Electronic Arts Inc. * 0.06% 2,000 95,560 2,000 95,560 Electronic Data Systems Corp. 0.05% 2,500 61,350 1,000 24,540 3,500 85,890 EMC Corp. * 2.95% 4,500 58,140 355,830 4,597,324 7,000 90,440 367,330 4,745,904 Enterasys Networks, Inc.* 1.31% 562,100 2,107,875 562,100 2,107,875 Equinix, Inc.* 0.29% 16,500 465,300 16,500 465,300 Fairchild Semiconductor International, Inc.* 3.13% 201,600 5,033,952 201,600 5,033,952 First Data Corp. 0.13% 5,000 205,450 5,000 205,450 Harris Interactive Inc.* 0.79% 152,200 1,263,260 152,200 1,263,260 Hewlett-Packard Co. 0.23% 8,100 186,057 7,800 179,166 15,900 365,223 Intel Corp. 0.74% 17,600 566,720 19,500 627,900 37,100 1,194,620 International Business Machines Corp. 0.63% 5,500 509,740 5,400 500,472 10,900 1,010,212 ITT Educational Services, Inc.* 1.20% 41,200 1,935,164 41,200 1,935,164 Linear Technology Corp. 0.07% 1,500 63,105 1,000 42,070 2,500 105,175 LSI Logic Corp. * 0.01% 1,500 13,305 1,500 13,305 Maxim Integrated Products, Inc. 0.07% 1,300 64,740 1,000 49,800 2,300 114,540 Micron Technology, Inc. * 0.04% 2,600 35,022 2,500 33,675 5,100 68,697 Microsoft Corp. 1.00% 28,100 773,874 30,200 831,708 58,300 1,605,582 Motorola, Inc. 0.12% 7,100 99,897 6,600 92,862 13,700 192,759 NVIDA Corp. * 0.01% 1,000 23,250 1,000 23,250 Oracle Corp. * 0.25% 17,800 234,960 12,300 162,360 30,100 397,320 QUALCOMM Inc. 0.13% 1,500 80,895 2,500 134,825 4,000 215,720 Sanmina-SCI Corp. * 0.02% 2,500 31,525 2,500 31,525 Siebel Systems, Inc. * 0.02% 2,500 34,675 2,500 34,675 Skyworks Solutions, Inc.* 0.97% 179,100 1,558,170 179,100 1,558,170 Solectron Corp. * 0.02% 3,700 21,867 3,000 17,730 6,700 39,597 Sun Microsystems, Inc. * 0.05% 10,000 44,900 7,500 33,675 17,500 78,575 SunGard Data Systems, Inc. * 0.04% 2,500 69,275 2,500 69,275 Texas Instruments Inc. 0.19% 5,400 158,652 4,900 143,962 10,300 302,614 Yahoo! Inc. * 0.12% 2,500 112,925 1,900 85,823 4,400 198,748 Zoran Corp.* 1.42% 131,750 2,291,133 131,750 2,291,133 ---------- ------------ ---------- ------------- 4,340,482 26,562,796 4,191,184 35,094,462 MATERIALS - 7.86% Air Products & Chemicals, Inc. 0.03% 1,000 52,830 1,000 52,830 Alcoa Inc. 0.17% 4,200 159,600 3,100 117,800 7,300 277,400 Dow Chemical Co. (The) 0.14% 2,700 112,239 2,700 112,239 5,400 224,478 E. I. du Pont de Nemours & Co. 0.16% 3,300 151,437 2,200 100,958 5,500 252,395 General Cable Corp.* 0.63% 124,200 1,012,230 124,200 1,012,230 Georgia-Pacific Corp. 0.04% 1,000 30,670 1,000 30,670 2,000 61,340 International Paper Co. 0.12% 2,500 107,775 2,000 86,220 4,500 193,995 Joy Global Inc. 1.85% 114,100 2,983,715 114,100 2,983,715 Packaging Corp of America 1.76% 129,600 2,833,056 129,600 2,833,056 Peabody Energy Corp. 1.74% 67,000 2,794,570 67,000 2,794,570 -24- Praxair, Inc. 0.07% 3,000 114,600 3,000 114,600 Rohm & Haas Co. 0.03% 1,000 42,710 1,000 42,710 Steel Dynamics, Inc.* 1.08% 74,300 1,745,307 74,300 1,745,307 Weyerhaeuser Co. 0.04% 1,000 64,000 1,000 64,000 ---------- ------------ ---------- ------------- 604,431 11,368,878 679,317 12,652,626 TELECOMMUNICATION SERVICES - 1.30% ALLTEL Corp 0.04% 1,500 69,870 1,500 69,870 AT&T Corp. 0.06% 2,260 45,878 2,400 48,720 4,660 94,598 AT&T Wireless Services Inc. * 0.06% 8,534 68,187 4,522 36,131 13,056 104,318 BellSouth Corp. 0.22% 6,000 169,800 6,500 183,950 12,500 353,750 Journal Communications, Inc. 0.14% 12,000 222,360 12,000 222,360 Lucent Technologies Inc. * 0.04% 11,600 32,944 10,700 30,388 22,300 63,332 Nextel Communications, Inc., Class A * 0.04% 2,500 70,150 2,500 70,150 SBC Communications Inc. 0.18% 8,200 213,774 2,500 70,150 10,700 283,924 Sprint Corp. (FON Group) 0.17% 4,000 65,680 7,900 205,953 11,900 271,633 Sprint Corp. (PCS Group) * 0.04% 1,800 10,116 3,000 49,260 4,800 59,376 Verizon Communications Inc. 0.31% 6,200 217,496 7,900 277,132 14,100 494,628 ------------ ---------- ------------- 963,895 222,360 901,684 2,087,939 UTILITIES - 0.66% American Electric Power Co., Inc. 0.05% 1,500 45,765 1,200 36,612 2,700 82,377 Dominion Resources, Inc. 0.08% 1,100 70,213 1,000 63,830 2,100 134,043 Duke Energy Corp. 0.07% 2,500 51,125 2,800 57,260 5,300 108,385 Edison International * 0.05% 1,500 32,895 2,500 54,825 4,000 87,720 Exelon Corp. 0.06% 1,500 99,540 1,500 99,540 FirstEnergy Corp. 0.05% 2,500 88,000 2,500 88,000 FPL Group, Inc. 0.04% 1,000 65,420 1,000 65,420 Progress Energy, Inc. 0.03% 1,000 45,260 1,000 45,260 Public Service Enterprises Group Inc, 0.03% 1,000 43,800 1,000 43,800 Scottish Power plc, ADR 0.07% 4,000 108,720 4,000 108,720 Southern Co. (The) 0.05% 2,400 72,600 2,400 72,600 TXU Corp. 0.03% 1,200 28,464 1,000 23,720 2,200 52,184 Xcel Energy, Inc. 0.04% 1,600 27,168 2,500 42,450 4,100 69,618 ---------- ------------ ---------- ------------ 509,650 0 548,017 1,057,667 TOTAL EQUITY SECURITIES 95.21% 25,929,314 100,826,318 26,435,672 153,191,304 ---------- ------------ ---------- ------------ SHORT-TERM INVESTMENTS - 21.34% REPURCHASE AGREEMENTS - 21.34% Bear, Stearns & Co. Inc. 0.09% 138,234 138,234 138,234 138,234 (Agreement dated 12/31/03 to be repurchased at $138,241), 0.85%, 01/02/04 -25- Bear, Stearns & Co. Inc. 0.27% 438,900 438,900 438,900 438,900 (Agreement dated 12/31/03 to be repurchased at $438,926), 1.06%**, 01/02/04 *** Bear, Stearns & Co. Inc. 0.00% 2,278 2,278 2,278 2,278 (Agreement dated 12/31/03 to be repurchased at $2,278), 0.94%**, 01/02/04 *** Bear, Stearns & Co. Inc. 4.89% 7,867,525 7,867,525 7,867,525 7,867,525 (Agreement dated 12/31/03 to be repurchased at $7,867,897) 0.85%, 01/02/04 Bear, Stearns & Co. Inc. 14.84% 23,869,214 23,869,214 23,869,214 23,869,214 (Agreement dated 12/31/03 to be repurchased at $23,870,620) 1.06%**, 01/02/04*** Bear, Stearns & Co. Inc. 0.86% 1,380,273 1,380,273 1,380,273 1,380,273 (Agreement dated 12/31/03 to be repurchased at $1,380,345) 0.94%**, 01/02/04*** Bear, Stearns & Co. Inc. 0.09% 139,977 139,977 139,977 139,977 (Agreement dated 12/31/03 to be repurchased at $139,984), 0.85%, 01/02/04 Bear, Stearns & Co. Inc. 0.26% 425,588 425,588 425,588 425,588 (Agreement dated 12/31/03 to be repurchased at $425,613), 1.06%**, 01/02/04 *** Bear, Stearns & Co. Inc. 0.04% 65,644 65,644 65,644 65,644 (Agreement dated 12/31/03 to be repurchased at $65,647), 0.94%**, 01/02/04 *** ---------- ------------ ----------- ----------- TOTAL SHORT-TERM INVESTMENTS 21.34% 579,412 33,117,012 631,209 34,327,633 ---------- ------------ ----------- ----------- TOTAL INVESTMENTS AT MARKET 116.55% 26,508,726 133,943,330 27,066,881 187,518,937 ---------- ------------ ----------- ----------- TOTAL INVESTMENTS AT COST 29,716,897 108,743,027 24,952,427 163,412,351 ---------- ------------ ----------- ----------- @ No adjustments are shown to the unaudited pro forma combined portfolio of investments due to the fact that upon consummation of the merger, securities would need to be sold in order for Acquiring Fund to comply with its prospectus restrictions. The foregoing sentence shall not restrict in any way the ability of the investment adviser of any of the funds from buying or selling securities in the normal course of such fund's business and operations. * Non-income producing securities ** Stated interest rate, before rebate earned by borrower of securities on loan *** Represents investment purchased with cash collateral received for securities on loan. ADR American Depositary Receipt -26-