-----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, ESZVQNrjpd1LrZkKJwjw/sY1UphcSWn5dyu9TxcwwHH297vdI+gv4/KtV+Sg0jr3 +8e2Sp4j2BuX8TDm5Jul/Q== 0000950146-96-000647.txt : 19960503 0000950146-96-000647.hdr.sgml : 19960503 ACCESSION NUMBER: 0000950146-96-000647 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960229 FILED AS OF DATE: 19960502 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MUTUAL FUND VARIABLE ANNUITY TRUST CENTRAL INDEX KEY: 0000927053 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-08630 FILM NUMBER: 96555201 BUSINESS ADDRESS: STREET 1: 125 WEST 55TH ST CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2124261600 MAIL ADDRESS: STREET 1: 125 WEST 55TH ST CITY: NEW YORK STATE: NY ZIP: 10019 N-30D 1 VISTA - --------------------------- CAPITAL ADVANTAGE - --------------------------- MANAGED BY CHASE MANHATTAN - --------------------------- April 1996 Dear Vista Capital Advantage Contract Owner: Enclosed is the February 29, 1996 Semi-Annual Report of the Mutual Fund Variable Annuity Trust, whose portfolios serve as the underlying investments for the Vista Capital Advantage variable annuity. The table below shows the six-month, twelve-month and since inception results of the accounts in the Vista Capital Advantage variable annuity at fiscal year-end and quarter-end. The trailing six-month figures shown below are slightly different from those appearing in the enclosed report because they reflect the deduction of insurance fees associated with your contract. These fees include mortality and expense risk charges, which pay for benefits such as your contract's Family Protection feature.
Average Annual Total Return(1) - ------------------------------------- -------------------------------------------------------------------- At Fiscal Year-end (2/29/96) At Quarter-end (3/31/96) Trailing 6 Since Trailing 12 Since Portfolio (Inception Date) months(2) Inception months Inception - ------------------------------------- --------------- ------------ --------------- -------------- Growth and Income (3/13/95) 10.44% 26.22% 24.91% 27.05% Capital Growth (3/13/95) 9.10% 28.94% 30.23% 32.78% International Equity (3/13/95) 1.53% 11.12% 10.39% 13.19% Asset Allocation (3/13/95) 7.39% 17.54% 16.65% 17.50% U.S. Treasury Income (7/13/95) 2.42% 1.92% N/A 0.76% Money Market (6/2/95)(3) 1.91% 2.90% N/A 3.20% 7-day curent yield as of 3/31/96: 3.42%
On the reverse side of this letter, you will find an additional table which, in accordance with Securities and Exchange Commissions regulations, shows results of the most recently completed calendar quarter after the deduction of all charges, including withdrawal charges(4) and the annual contract administration charge. Withdrawal Charges, where applicable, apply only to withdrawals in excess of 10% during the first seven years after each investment. Of course, you may withdraw 100% of earnings at any time, free of surrender charge.(5) Your Vista Capital Advantage variable annuity represents a unique combination of professional money management and tax advantages. It is designed to contribute to your plans for a financially secure future. If you have any questions, please call your investment representative or 1-800-90-VISTA. Sincerely, /s/ Fergus Reid Fergus Reid Chairman Average Annual Total Return (If You Surrendered Your Policy)
At Quarter-end (3/31/96) Portfolio (Inception Date) Trailing 12 months Since Inception - ----------------------------------------- ------------------- ------------------ Growth and Income (3/13/95) 18.91% 22.35% Capital Growth (3/13/95) 24.23% 28.09% International Equity (3/13/95) 4.39% 8.46% Asset Allocation (3/13/95) 10.65% 12.78% U.S. Treasury Income (7/13/95) N/A -5.24% Money Market (6/2/95) N/A N/A 7-day curent yield as of 3/31/96: 3.42%
(1) These figures reflect the average change in unit value for the period and do not include the deduction of Withdrawal Charges. (2) These figures reflect the change in unit value for the past 6 months, and do not include the deduction of the annual contract charge or Withdrawal Charges. (3) There can be no assurance that the underlying fund will be able to maintain a stable net asset value of $1.00 per share and fund shares themselves are not insured or guaranteed by the U.S. Government. (4) The Withdrawal Charge schedule in states other than NY is as follows: 6%, 6%, 5%, 5%, 4%, 3% 2%, 0%. (5) A 10% Federal tax penalty may apply to withdrawals before age 59-1/2. Performance data quoted in this letter represents past performance and is no guarantee of future results. An investor's return and principal value will fluctuate. An investor's units, when redeemed, may be worth more or less than their original investment. This material is authorized for public distribution only when accompanied or preceded by a prospectus for Vista Capital Advantage. The distributor of Vista Capital Advantage (VCA) is Vista Fund Distributors, Inc., which is unaffiliated with the Chase Manhattan Bank, Anchor National Life Insurance Company or First SunAmerica Life Insurance Company. Chase Manhattan is the portfolio advisor, administrator and custodian of the underlying investment options. VCA is issued by Anchor National Life Insurance Company or First SunAmerica Life Insurance Company (in New York). ----------------------------------------------------------------------------- Investments in Vista Capital Advantage are not deposits, or guaranteed or endorsed by, Chase, and are not insured by the FDIC, Federal Reserve Board or any other government agency. Investments in Vista Capital Advantage, including the underlying variable investment options, involve risk, including possible loss of principal. ----------------------------------------------------------------------------- [logo] S E M I-A N N U A L R E P O R T F E B R U A R Y 2 9, 1 9 9 6 VISTA ----------------- CAPITAL ADVANTAGE ----------------- MANAGED BY CHASE MANHATTAN Mutual Fund Variable Annuity Trust Distributed by Vista Fund Distributors, Inc. This report must be accompanied or preceded by a current prospectus for Vista Capital Advantage page 2 [logo] TABLE OF CONTENTS Letter from the Chairman..................3 Performance & Commentary Growth and Income .......................4 Capital Growth...........................4 International Equity ....................5 Asset Allocation ........................5 U.S. Treasury Income ....................6 Money Market ............................6 Portfolio of Investments Growth and Income .......................7 Capital Growth...........................8 International Equity..................9-10 Asset Allocation .......................11 U.S. Treasury Income ...................12 Money Market............................13 Mutual Fund Variable Annuity Trust Statement of Assets & Liabilities ......14 Statement of Operations ................15 Statement of Changes in Net Assets ..16-17 Selected Per Share Data and Ratios ..18-19 Notes to Financial Statements ........20-22 The financial information in this report has been taken from the books and records of the portfolios without examination by independent accountants who express no opinion thereto. INVESTMENTS IN VISTA CAPITAL ADVANTAGE ARE NOT INSURED BY THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY AND ARE NOT DEPOSITS OF, ENDORSED BY, OR GUARANTEED BY, CHASE. INVESTMENTS IN VISTA CAPITAL ADVANTAGE, INCLUDING THE UNDERLYING VARIABLE INVESTMENT OPTIONS, ARE SUBJECT TO RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL. page 3 LETTER FROM THE CHAIRMAN [logo] DEAR INVESTOR: We are pleased to present this Semi-Annual Report on the six variable annuity portfolios in the Mutual Fund Variable Annuity Trust that underly your Vista Capital Advantage variable annuity for the six-month period ended February 29, 1996. As you'll see in this report, most financial markets benefited from a generally positive economic climate for investing over the past six months. To help you monitor your portfolios' performance, we've included commentary summarizing the major events in the financial markets that affected your investment in addition to their total return performance for the period under review. U.S. STOCK AND BOND MARKETS CONTINUE TO CLIMB Most U.S. financial markets flourished in a positive economic climate for investing. Stock prices remained strong, sparked by investors who flocked to purchase equities on optimism about a prolonged bull market. What's more, investors believed economic growth would remain solid and inflation would continue to be moderate. Bond market investors also benefited during the period under review as bond prices pushed higher and yields continued to move lower. But, late in the period under review, bond yields reversed course, moving higher on volatility in the wake of stronger-than-anticipated economic growth. ECONOMIC CLIMATE BENEFITS INTERNATIONAL MARKETS During the period under review, the European stock markets generally benefited as most economies continued to show tepid growth with moderate inflation. The Japanese market also rallied in reaction to the government's pursuit of a looser monetary policy and a weaker yen. Meanwhile, markets in Southeast Asia and Latin America rebounded from somewhat depressed levels, benefiting from lower interest rates and increased global liquidity. As always, we appreciate the confidence you have placed in Vista and look forward to helping you achieve your financial goals in the years ahead. If you have any questions about your portfolio--or its recent performance--please do not hesitate to call your investment representative or 1-800-90-VISTA. Sincerely, /s/ Fergus Reid Fergus Reid Chairman page 4 [logo] PERFORMANCE & COMMENTARY GROWTH & INCOME PORTFOLIO objective: seeks long-term capital appreciation and dividend income through diversified holdings of common stocks. pursues a "contrary opinion" approach, selecting common stocks that are currently out of favor with investors. GROWTH AND INCOME PORTFOLIO The U.S. equity market, as represented by the Dow Jones Industrial Average and S&P 500, continued to register new highs during the period under review, boosting the performance of the Growth and Income Portfolio. Contributing to the Portfolio's returns was the management team's emphasis on stocks in the capital goods, financial and consumer sectors, which generally performed well. Your Portfolio achieved an 11.22%* total return for the six months ended February 29, 1996. From August 31, 1995, through February 29, 1996, the U.S. equity market continued to push higher, building on the momentum begun earlier in 1995. Stock prices remained strong, sparked by investors who flocked to purchase equities on optimism about a prolonged bull market. This optimism was based primarily on the view that the economic environment would continue to benefit from the stock market's performance. For instance, investors believed that economic growth would remain solid and inflation would continue to be moderate. Stocks were also expected to benefit from solid corporate earnings growth based on stable consumer demand and better inventory and pricing. Other factors expected to contribute to improved corporate earnings were the following: the results of prior restructuring efforts, cost management and a profusion of merger and acquisition activity. Going forward, we continue to see volatility in the U.S. equity market in 1996. Within this environment, portfolio management will continue to look for opportunities to buy stocks that are attractively priced but take profits in issues that have already performed strongly. CAPITAL GROWTH PORTFOLIO The Capital Growth Portfolio performed strongly during the six-month period ended February 29, 1996, as the U.S. stock market continued to rally. From August 31, 1995, through February 29, 1996, the Portfolio achieved a 9.89%* total return. Your Portfolio benefited from the management team's decision to participate in such diverse sectors as energy, financial, health care and utilities. Other pockets of opportunity were found in the small- and mid-capitalization areas. For example, following the broad-based sell-off in technology stocks, the Portfolio management team was able to buy shares of the best technology companies at relatively depressed prices. The U.S. equity market continued its positive performance during the period under review. Stock prices remained strong as enthusiastic investors continued to enter the market in droves. For the most part, investors expected the economy to continue to grow while inflation remained under control. Stocks were also expected to benefit from solid corporate earnings growth based on the following: stable consumer demand; better inventory and pricing; the results of prior restructuring efforts; and merger and acquisition activity. Looking ahead, within an overall volatile environment for U.S. equities, we see strong long-term prospects for growth in both small- and medium-sized companies. CAPITAL GROWTH PORTFOLIO objective: seeks long-term capital growth primarily through diversified holdings in common stocks. *Total return figures do not include the effect of any insurance or withdrawal charges. page 5 PERFORMANCE & COMMENTARY [logo] INTERNATIONAL EQUITY PORTFOLIO objective: seeks long-term growth of capital and income by investing in equity securities of established foreign companies and foreign subsidiaries of U.S. companies participating in foreign economies with prospects for growth. international investing is subject to special risks, including currency fluctuations and differences in accounting and taxation standards and political instability. INTERNATIONAL EQUITY PORTFOLIO The International Equity Portfolio had a total return of 2.22%* for the six months ended February 29, 1996, in an overall positive, yet sometimes volatile, period for the overseas equity markets. November and December 1995 were especially difficult for the Portfolio, which did not fully participate in the substantial year-end rally in Japan. During the period under review, the European stock markets generally benefited as economies continued to show below-trend growth with moderate inflation. European equities registered gains in most markets, buoyed by lower interest rates and higher corporate earnings. An uncertain political climate in some European markets remains an unsettling factor; however, in a global context, these markets offer value and we remain positive about the region. In Japan, the stock market continued to rebound from June 1995 lows as the government aggressively pursued a looser monetary policy and actively intervened in the foreign exchange markets to weaken the yen. Japan also benefited from the increase in consumer demand, the expansion of corporate profit margins in the better pricing environment and the progress made to address the country's debt situation. During the last six months, the developing markets of Southeast Asia and Latin America rebounded from somewhat depressed levels, benefiting from lower interest rates and increased global liquidity. The economies of Mexico and Argentina began to show signs of improvement, which should help the regional economies in Latin America. Meanwhile, the Southeast Asian economies continued to remain stable. Looking ahead, we are comfortable with our positions in the international equity markets. In our opinion, the interest rate environment appears conducive to overseas stocks. ASSET ALLOCATION PORTFOLIO The Asset Allocation Portfolio benefited from strong performances overall in the U.S. stock and bond markets for the six months ended February 29, 1996. Your Portfolio achieved an 8.11%* total return during this period. The yield curve for the 30-year Treasury bond shifted dramatically lower during 1995, dropping to 5.96% by year-end. However, in anticipation of this decline, we increased the average maturity of the Portfolio's holdings. In early 1996, the fixed income markets became more volatile as the market reacted to stronger-than-expected growth, a Federal government shutdown and the unwinding of leveraged trades. These factors caused the yield on the 30-year Treasury bond to rise from 5.96% at the end of 1995 to 6.48% at the end of February 1996. Meanwhile, the U.S. equity market continued to push higher, building on the momentum begun in early 1995. Stock prices remained strong sparked by investors who flocked to purchase equities on optimism about a prolonged bull market. Investors' enthusiasm was fueled by the belief that the U.S. economy would remain solid and inflation would stay moderate, which should boost the stock market's performance. Stocks were also expected to benefit from solid corporate earnings growth in the wake of stable consumer demand and better inventory and pricing. Other factors expected to contribute to improved corporate earnings were as follows: the results of prior restructuring efforts, cost management and a profusion of merger and acquisition activity. Going forward, we expect volatility to remain a factor in the short term, although the economic environment should continue to support stock and bond prices. ASSET ALLOCATION PORTFOLIO objective: seeks a combination of long-term capital growth and current income by investing in common stocks, convertible securities and government and corporate fixed-income obligations. *Total return figures do not include the effect of any insurance or withdrawal charges. page 6 [logo] PERFORMANCE & COMMENTARY U.S. TREASURY INCOME PORTFOLIO Investors in the U.S. bond market benefited during the period under review as bond prices pushed higher and yields continued to move lower. For the six months ended February 29, 1996, the U.S. Treasury Income Portfolio had a total return of 3.16%.* During the course of 1995, the yield on the 30-year Treasury bond fell from 7.89% to 5.96%, providing a total return in excess of 30%, and the yield curve shifted dramatically lower. Expecting this steeper yield curve, we increased the average maturity of the Portfolio's holdings. In early 1996, the fixed income markets were off to a rocky start as market participants had to deal with indications of stronger- than-anticipated growth, a Federal government shutdown and the unwinding of leveraged trades. The yield on the 30-year Treasury bond rose from 5.96% at the end of 1995 to 6.48% at the end of February 1996. Going forward, we expect the U.S. economy to continue to be bumpy over the short term, but generally positive for bonds as inflation remains under control and economic growth continues on its steady--although slow--course. U.S. TREASURY INCOME PORTFOLIO objective: seeks current income as well as preservation of investors' principal by investing at least 65% of its assets in debt obligations backed by the full faith and credit of the U.S. government. shares of the portfolio are neither insured nor guaranteed by the U.S. government or any other entity. MONEY MARKET PORTFOLIO objective: seeks to preserve capital and maintain liquidity while offering investors the opportunity for maximum current income. invests in obligations issued or guaranteed by U.S. banks, securities issued by the U.S. government or its agencies, dollar- denominated commercial paper and obligations of foreign governments. there is no assurance that the underlying portfolio will maintain an NAV of $1.00 per share, nor is it insured or guaranteed by the U.S. government. MONEY MARKET PORTFOLIO For the sixth-month period ended February 29, 1996, the Money Market Portfolio's total return was 2.63%. From August 31 through mid-December 1995, yields on money market instruments remained relatively steady as the Federal Reserve left short-term rates unchanged--in sharp contrast to a more significant drop for long-term bond yields. But, a rate cut in mid-December 1995 and a follow-up rate cut at the end of January 1996 caused steady declines in money market yields through the end of February 1996. At the end of February, most economists believed the Federal Reserve would not cut rates substantially for the rest of the year, although rate increases were considered possible in 1997. Based on a projected slow growth rate for the U.S. economy for the rest of the year, inflation is expected to remain moderate and under control. The Money Market Portfolio's 7-day current yield was 3.39% as of February 29, 1996. *Total return figures do not include the effect of any insurance or withdrawal charges. page 7 GROWTH & INCOME PORTFOLIO [logo] Portfolio of Investments February 29, 1996 (Unaudited) LONG-TERM INVESTMENTS 82.2% COMMON STOCK 76.3% Issuer Shares $ Value $ Subtotal AEROSPACE 1.7% Allied-Signal, Inc. 600 33,375 United Technologies, Corp. 400 43,000 76,375 ------------ AIRLINES 1.0% AMR Corp. * 500 43,875 43,875 ------------ AUTOMOTIVE 3.1% Chrysler Corp. 717 40,421 Echlin, Inc. 1,000 33,875 TRW Inc. 800 69,300 143,596 ------------ BANKING 5.7% Bank of New York Company, Inc. 800 41,500 Citicorp 1,000 78,000 First Bank System Inc. 500 28,813 NationsBank Corp. 1,000 73,750 Norwest Corp. 1,100 40,150 262,213 ------------ BROADCASTING 0.5% U.S. West Media Group* 1,100 22,962 22,962 ------------ CHEMICALS 2.2% Air Products and Chemicals, Inc. 700 37,275 duPont (EI) deNemours 800 61,200 98,475 ------------ COMPUTER SOFTWARE 0.6% General Motors Corp., Class E 500 28,562 28,562 ------------ COMPUTERS/COMPUTER HARDWARE 4.7% Apple Computer, Inc. 800 22,000 Compaq Computer* 1,500 75,938 International Business Machines Corp. 300 36,787 SCI Systems, Inc.* 900 33,356 Sun Microsystems, Inc.* 900 47,250 215,331 ------------ CONSTRUCTION MACHINERY 0.7% Caterpillar Inc. 500 33,438 33,438 ------------ CONSUMER PRODUCTS 3.0% Adidas AG* 1,500 48,018 Philip Morris Companies, Inc. 600 59,400 Whirlpool Corp. 500 27,812 135,230 ------------ ELECTRONICS/ELECTRICAL EQUIPMENT 4.1% General Motors Class H 1,500 85,875 Hewlett-Packard Co. 400 40,300 Texas Instruments 1,200 59,850 186,025 ------------ ENTERTAINMENT 0.9% Time Warner, Inc. 1,000 42,750 42,750 ------------ FINANCIAL SERVICES 1.1% Federal National Mortgage Assoc. 1,600 50,600 50,600 ------------ FOOD/BEVERAGE PRODUCTS 3.0% CPC International, Inc. 500 34,625 PepsiCo., Inc. 1,200 75,900 Unilever NV, NY Shares 200 26,900 137,425 ------------ HEALTH CARE 4.6% Baxter International Inc. 1,000 45,750 Beverly Enterprises* 2,700 32,738 Columbia/HCA Healthcare Corp. 700 38,325 Humana, Inc.* 900 22,050 Tenet Healthcare Corp.* 3,200 71,600 210,463 ------------ HOTELS 0.7% Bristol Hotel Co.* 1,200 32,250 32,250 ------------ INSURANCE 3.6% American International Group 350 33,819 Chubb Corp. 500 48,563 Highlands Insurance Group* 110 2,241 Mid Ocean, Ltd. (Bermuda) 1,000 39,000 Providian Corp. 900 41,625 165,248 ------------ MANUFACTURING 3.2% Case Corp. 1,400 74,375 Johnson Controls 600 43,050 Varity Corp.* 800 30,200 147,625 ------------ METALS/MINING 2.2% Aluminum Co. of America (ALCOA) 700 39,725 Inco, Ltd. 1,000 31,875 Phelps Dodge Corp. 500 30,562 102,162 ------------ OIL & GAS 6.6% Amoco Corp. 500 34,750 Halliburton Company 1,100 60,362 Mobil Corp. 500 54,813 Panhandle Eastern Corp. 2,200 62,975 Phillips Petroleum Co. 700 24,500 Smith International * 1,500 30,562 Williams Companies, Inc. 700 33,250 301,212 ------------ PAPER/FOREST PRODUCTS 1.4% Champion International Corp. 700 28,000 Willamette Industries 700 36,750 64,750 ------------ PHARMACEUTICALS 1.6% American Home Products Corp. 500 49,250 Glaxo Wellcome Plc 900 24,637 73,887 ------------ PRINTING & PUBLISHING 1.0% Harcourt General, Inc. 1,000 43,375 43,375 ------------ RESTAURANTS/FOOD SERVICES 0.8% Wendy's International, Inc. 1,900 34,437 34,437 ------------ RETAILING 6.7% American Stores Co. 1,000 29,125 Circuit City Stores, Inc. 1,500 44,438 Dayton-Hudson Corp. 1,000 74,375 Kroger Co.* 2,000 74,250 May Department Stores 900 41,963 MSC Industrial Direct Co., Inc.* 1,500 41,625 305,776 ------------ SHIPPING/TRANSPORTATION 2.3% Canadian National Railway Co.* 2,500 43,125 CSX Corp. 1,400 62,825 105,950 ------------ STEEL 0.9% USX-US Steel Group, Inc. 1,200 39,300 39,300 ------------ TELECOMMUNICATIONS 2.9% AT&T Corp. 900 57,263 GTE Corp. 800 34,300 U S West, Inc. 1,200 39,300 130,863 ------------ TOYS & GAMES 1.6% Mattel, Inc. 2,200 73,150 73,150 ------------ UTILITIES 3.9% CMS Energy Corp. 1,400 42,525 FPL Group Inc. 1,600 71,400 Nipsco Industries Inc. 1,000 37,750 Pinnacle West Capital Corp. 1,000 28,375 180,050 ------------ TOTAL COMMON STOCK (COST $2,867,933) 3,487,355 ------------ CONVERTIBLE PREFERRED STOCK 3.1% FINANCIAL SERVICES International Paper Capital Corp., 5.25%# 800 36,680 St. Paul Capital LLC, 6.00%, 5/31/25 Series 500 29,375 OIL & GAS Enron Corp., 6.25% Exchange Notes, 12/13/98 3,000 74,625 74,625 ------------ TOTAL CONVERTIBLE PREFERRED STOCK (COST $130,250) 140,680 ------------ Principal Amount (USD) CONVERTIBLE CORPORATE BONDS & NOTES 2.8% FINANCIAL American Travellers Corp., 6.5%, due 10/1/05 $55,000 76,725 MANUFACTURING Waban Inc., 6.5%, due 7/1/02 50,000 52,500 TOTAL CONVERTIBLE CORPORATE BONDS & NOTES (Cost $103,774) 129,225 ---------- TOTAL LONG-TERM INVESTMENTS (Cost $3,101,957) 3,757,260 ---------- SHORT-TERM INVESTMENTS 16.9% COMMERCIAL PAPER (COST $770,000) Household Finance, 5.25%, due 3/1/96 770,000 770,000 770,000 ---------- TOTAL INVESTMENTS (COST $3,871,957) 99.1% $4,527,260 ========== *Non-income producing securities. See NOTES TO FINANCIAL STATEMENTS. page 8 [logo] CAPITAL GROWTH PORTFOLIO Portfolio of Investments February 29, 1996 (Unaudited) LONG-TERM INVESTMENTS 84.0% COMMON STOCK 84.0% Issuer Shares $ Value $ Subtotal AGRICULTURE 2.3% AGCO Corp. 4,200 113,925 113,925 ---------- BANKING 1.7% Standard Federal Bancorporation, 2,000 82,750 82,750 ---------- BUSINESS SERVICES 2.9% Pittston Services Group 6,000 140,250 140,250 ---------- CHEMICALS 1.9% Cabot Corp. 1,500 90,750 90,750 ---------- COMPUTER SOFTWARE 1.8% Reynolds & Reynolds, Inc., Class A 2,300 87,113 87,113 ---------- COMPUTERS/COMPUTER HARDWARE 6.3% Comdisco, Inc. 4,550 93,275 Gateway 2000 Inc.,* 4,000 118,000 SCI Systems, Inc.* 2,500 92,656 303,931 ---------- CONSUMER PRODUCTS 7.9% Danaher Corp. 2,400 81,600 First Brands Corp. 4,000 107,000 INTERCO, Inc.* 6,000 54,750 Lancaster Colony Corp. 1,500 56,625 Toro Co. 2,500 83,750 383,725 ---------- DIVERSIFIED 1.6% Harnischfeger Industries, Inc. 2,000 75,750 75,750 ---------- ELECTRONICS/ELECTRICAL EQUIPMENT 12.4% ADT Ltd. * 6,000 88,500 Elsag Bailey Process Automation N.V.* 2,500 53,750 Esterline Technologies Corp.* 5,000 111,250 Lam Research Corp.* 2,500 92,188 Microchip Technology, Inc.* 2,500 69,375 Teradyne Inc.* 4,000 81,500 Varian Associates, Inc. 2,000 104,000 600,563 ---------- ENTERTAINMENT 2.2% Bally Enterainment Corp. * 7,000 108,500 108,500 ---------- FINANCIAL SERVICES 3.9% Advanta Corp., Class A 2,000 95,500 Green Tree Financial Corp. 3,000 94,875 190,375 ---------- FOOD/BEVERAGE PRODUCTS 1.7% Coca-Cola Enterprises, Inc. 3,000 85,125 85,125 ---------- HEALTH CARE 3.7% Integrated Health Services, Inc. 3,500 77,438 Ornda Healthcorp * 4,000 102,500 179,938 ---------- HOTELS/OTHER LODGING 1.1% Bristol Hotel Co.* 2,000 53,750 53,750 ---------- INSURANCE 6.9% Mid Ocean, Ltd. (Bermuda) 2,700 105,300 Reliastar Financial Corp. 1,900 91,200 Transatlantic Holdings, Inc. 2,000 140,500 337,000 ---------- MANUFACTURING 1.7% Kennametal Inc. 2,500 80,937 80,937 ---------- METALS/MINING 2.0% Alumax, Inc. * 2,700 97,538 97,538 ---------- OIL & GAS 2.1% Smith International * 5,000 101,875 101,875 ---------- PAPER/FOREST PRODUCTS 1.8% Boise Cascade Corp. 2,500 88,125 88,125 ---------- PHARMACEUTICALS 2.9% Parexel International Corp.* 4,000 142,000 142,000 ---------- REAL ESTATE INVESTMENT TRUST 3.2% Oasis Residential, Inc. 6,600 156,750 156,750 ---------- RETAILING 3.4% Dillard Department Stores, Inc., Class A 3,000 93,750 MSC Industrial Direct Co., Inc.* 2,500 69,375 163,125 ---------- SHIPPING / TRANSPORTATION 2.8% GATX Corp. 1,800 80,775 Pittston Burlington Group 3,000 56,250 137,025 ---------- STEEL 1.9% AK Steel Holding Corp. 2,500 90,312 90,312 ---------- TEXTILE MILL PRODUCTS 1.8% Springs Industries, Inc., Class A 2,000 86,500 86,500 ---------- UTILITIES 2.1% Portland General Corp. 3,300 101,062 101,062 ---------- TOTAL COMMON STOCK (COST $3,457,981) 4,078,694 ---------- Principal Amount (USD) SHORT-TERM INVESTMENTS 17.1% COMMERCIAL PAPER Household Finance, 5.25%, due 3/1/96 (COST $827,000) 827,000 827,000 827,000 ---------- TOTAL INVESTMENTS (COST $4,284,981) 101.1% $4,905,694 ========== *Non-income producing securities. See NOTES TO FINANCIAL STATEMENTS. page 9 INTERNATIONAL EQUITY PORTFOLIO [logo] Portfolio of Investments February 29, 1996 (Unaudited) LONG-TERM INVESTMENTS 91.6% COMMON STOCK 91.6% Issuer Shares $ Value $ Subtotal BELGIUM 0.3% BANKING Kredietbank NV 25 6,881 6,881 ------------ FRANCE 5.1% BANKING Societe Generale de Paris 176 20,089 BROADCASTING & PUBLISHING TV Francaise (TF1) 192 20,544 COMPUTER SOFTWARE/SERVICES Group Axime * 121 13,139 CONSUMER PRODUCTS SEITA 571 22,783 FINANCIAL SERVICES Cetelem Group * 125 26,303 PHARMACEUTICALS Roussel-Uclaf 91 19,329 UTILITIES Cie Generale Des Eaux 149 14,937 Total France 137,124 ------------ GERMANY 6.8% AIRLINES Lufthansa 221 34,587 AUTOMOTIVE Volkswagen AG 65 24,735 CHEMICALS Bayer AG 56 17,097 CONSUMER PRODUCTS Adidas AG, ADS * 1,133 36,271 Adidas AG * 17 1,089 MACHINERY Mannesmann AG 63 22,537 OIL & GAS VEBA AG 622 29,300 RETAILING Asko Deutsche Kaufhaus AG 34 18,169 Total Germany 183,785 ------------ HONG KONG 6.7% BANKING HSBC Holdings PLC 1,000 16,041 DIVERSIFIED Hutchison Whampoa 7,000 44,370 FINANCIAL SERVICES Guoco Group Ltd. * 2,000 10,659 REAL ESTATE Henderson Land Development Company, Ltd. 3,000 21,732 New World Development Company, Ltd. 5,000 24,384 Swire Pacific, Ltd, Class A * 4,500 39,293 UTILITIES China Light & Power Co. 5,000 23,414 Total Hong Kong 179,893 ------------ INDONESIA 1.2% TELECOMMUNICATIONS PT Telekomunikasi Indonesia, ADR * 1,000 31,375 31,375 ------------ IRELAND 1.9% BANKING Bank of Ireland 4,092 28,210 INSURANCE Irish Life Plc 5,615 21,678 Total Ireland 49,888 ------------ ITALY 2.3% TELECOMMUNICATIONS Telecom Italia Mobile SpA, 33,938 62,313 62,313 ------------ JAPAN 32.0% AEROSPACE Ishikawajima-Harima Heavy Industries 4,000 17,320 AUTOMOTIVE Nissan Motor Co, Ltd., 10,000 77,465 Toyota Motor Corp. 3,000 64,808 BANKING Mitsui Trust & Banking 5,000 51,389 BUSINESS SERVICES Ricoh Corp. Ltd 3,000 32,261 ELECTRICAL & ELECTRONIC EQUIPMENT Mitsubishi Electric Corp. 10,000 73,278 Rohm Company 1,000 59,478 FINANCIAL SERVICES New Japan Securities * 1,000 5,881 Nikko Securities Co. Ltd. 5,000 56,624 MANUFACTURING NTN Corp. 8,000 53,521 PACKAGING Tomoku Co. Ltd. 10,000 53,102 Toto Ltd. 2,000 27,788 PAPER/FOREST PRODUCTS Mitsubishi Paper Mills 4,000 24,933 RETAILING Tokyu Department Store 4,000 25,276 Tokyu Corp. 13,000 94,271 TEXTILES Toray Industries, Inc. 2,000 12,962 TOYS Bandai Co. Limited 2,000 78,607 WHOLESALING Itochu Corp. 8,000 53,597 Total Japan 862,561 ------------ MALAYSIA 2.4% FINANCIAL SERVICES DCB Holdings Bhd 21,000 63,886 63,886 ------------ NETHERLANDS 5.6% APPLIANCES & HOUSEHOLD DURABLES Philips Gloeilampen 822 34,238 BROADCASTING & PUBLISHING Verenigde Nederlandse Uitgevbedri Verigd Bezit (Vnu) 1,820 29,769 CHEMICALS Akzo Nobel 251 27,945 FINANCIAL SERVICES International Nederlanden Groep NV * 426 28,312 TELECOMMUNICATIONS Royal PTT Nederland NV 797 32,033 Total Netherlands 152,297 ------------ SPAIN 2.5% BUSINESS SERVICES Prosegur, CIA de Seguridad SA * 595 21,656 OIL/GAS Repsol SA 600 21,935 UTILITIES Iberdrola S.A. 2,373 23,415 Total Spain 67,006 ------------ SWEDEN 2.9% MACHINERY & ENGINEERING EQUIPMENT Atlas Copco AB 1,471 25,517 Svedala Industri AB Free 994 30,654 TELECOMMUNICATIONS Telefonaktiebolaget LM Ericsson, 'B' Shares 1,000 21,720 Total Sweden 77,891 ------------ SWITZERLAND 3.7% PHARMACEUTICALS Ciba-Geigy AG (Registered Shares) 45 40,243 Roche Holding AG 4 31,129 Sandoz AG (Registered Shares) 31 29,147 Total Switzerland 100,519 ------------ THAILAND 3.6% BANKING Bangkok Bank Public Company, Ltd. 4,800 43,429 Siam City Bank Public Co. Ltd. 27,000 29,732 TELECOMMUNICATIONS Loxley Company Ltd (Foreign) 1,400 24,778 Total Thailand 97,939 ------------ UNITED KINGDOM 14.6% AUTOMOTIVE Kwik-Fit Holdings PLC 2,479 7,482 BROADCASTING General Cable PLC * 5,797 16,163 CHEMICALS BTP PLC 1,500 6,802 CONSTRUCTION Berkeley Group PLC 969 8,387 George Wimpey PLC 3,189 6,766 CONSUMER PRODUCTS B.A.T. Industries PLC * 1,469 12,862 ENGINEERING SERVICES Barratt Developments PLC 2,102 8,099 Senior Engineering Group Plc 8,865 14,464 FOOD/BEVERAGE PRODUCTS Allied Domecq PLC 1,698 13,475 Associated British Foods PLC 3,463 21,009 Unigate PLC 1,000 6,810 Wolverhampton & Dudley Breweries, PLC 832 7,979 HOTELS/OTHER LODGING Greenalls Group PLC 1,280 11,256 Insurance General Accident PLC 1,924 18,938 Lloyds Abbey Life Group 1,962 15,329 MACHINERY & ENGINEERING EQUIPMENT Powerscreen International Plc 2,726 16,788 MANUFACTURING Cookson Group PLC 2,576 12,194 OIL/GAS Enterprise Oil PLC 2,284 13,402 PACKAGING David S. Smith (Holdings) PLC 2,675 12,499 *Non-income producing securities. See NOTES TO FINANCIAL STATEMENTS. page 10 [logo] INTERNATIONAL EQUITY PORTFOLIO Portfolio of Investments February 29, 1996 (Unaudited) Issuer Shares $ Value $ Subtotal RESTAURANTS/FOOD SERVICES Compass Group PLC 1,044 7,781 RETAILING Great Universal Stores PLC 1,210 12,313 SHIPPING/TRANSPORTATION British Airport Authority PLC * 1,036 7,761 Ocean Group PLC 1,119 6,645 Transport Development Group PLC 2,210 7,279 TELECOMMUNICATIONS British Telecommunications PLC 3,465 19,763 UTILITIES Anglian Water PLC 1,086 9,438 East Midlands Electricity PLC * 980 10,847 London Electricity PLC 1,835 20,757 National Grid Group PLC * 1 3 National Power PLC 4,372 23,309 Severn Trent PLC 1,008 9,574 South West Water PLC * 986 7,417 Southern Electricity PLC * 637 8,283 Thames Water PLC 1,399 11,408 Total United Kingdom 393,282 ------------ TOTAL COMMON STOCK (COST $2,286,115) 2,466,640 ------------ WARRANTS 0.0% MALAYSIA DIVERSIFIED IOI Corp., Bhd (Cost $1,065) 11,750 1,060 ------------ Total Long-term Investments 2,467,700 (Cost $2,287,180) ------------ Principal Amount (USD) SHORT-TERM INVESTMENTS 5.5% COMMERCIAL PAPER UNITED STATES Household Finance, 5.38%, due 3/1/96, (Cost $149,000) $149,000 149,000 149,000 ------------ TOTAL INVESTMENTS (COST $2,436,180) 97.1% $2,616,700 ============ *Non-income producing securities. See NOTES TO FINANCIAL STATEMENTS. page 11 ASSET ALLOCATION PORTFOLIO [logo] Portfolios of Investments February 29, 1996 (Unaudited) LONG-TERM INVESTMENTS 91.8% COMMON STOCK 56.2% Issuer Shares $ Value $Subtotal BROADCASTING 0.5% U.S. West Media Group* 700 14,613 ------------ AEROSPACE 1.3% Allied-Signal, Inc. 300 16,688 United Technologies, Corp. 200 21,500 38,188 ------------ AIRLINES 0.9% AMR Corp.* 300 26,325 26,325 ------------ AUTOMOTIVE 2.4% Chrysler Corp. 409 23,057 Echlin, Inc. 500 16,938 TRW Inc. 400 34,650 74,645 ------------ BANKING 4.3% Bank of New York Company, Inc. 400 20,750 Citicorp 500 39,000 First Bank System Inc. 300 17,288 NationsBank Corp. 500 36,875 Norwest Corp. 500 18,250 132,163 ------------ CHEMICALS 1.5% Air Products and Chemicals, Inc. 300 15,975 duPont (EI) deNemours 400 30,600 46,575 ------------ COMPUTER SOFTWARE 0.9% General Motors Corp., Class E 500 28,563 28,563 ------------ COMPUTERS/COMPUTER HARDWARE 3.4% Apple Computer, Inc. 400 11,000 Compaq Computer* 700 35,438 International Business Machines Corp. 100 12,263 SCI Systems, Inc.* 500 18,531 Sun Microsystems, Inc.* 500% 26,250 103,482 ------------ CONSTRUCTION MACHINERY 0.4% Caterpillar Inc. 200 13,375 13,375 ------------ CONSUMER PRODUCTS 2.1% Adidas AG* 700 22,408 Philip Morris Companies, Inc. 300 29,700 Whirlpool Corp. 200 11,125 63,233 ------------ ELECTRONICS / ELECTRICAL EQUIPMENT 2.9% General Motors Class H 700 40,075 Hewlett-Packard Co. 200 20,150 Texas Instruments 600 29,925 90,150 ------------ ENTERTAINMENT 0.7% Time Warner, Inc. 500 21,375 21,375 ------------ FINANCIAL SERVICES 0.8% Federal National Mortgage Assoc. 800 25,300 25,300 ------------ FOOD/BEVERAGE PRODUCTS 2.1% CPC International, Inc. 200 13,850 PepsiCo., Inc. 600 37,950 Unilever NV, NY Shares 100 13,450 65,250 ------------ HEALTH CARE 3.2% Baxter International Inc. 500 22,875 Beverly Enterprises* 1,200 14,550 Columbia/HCA Healthcare Corp. 300 16,425 Humana, Inc.* 500 12,250 Tenet Healthcare Corp.,* 1,500 33,563 99,663 ------------ HOTELS/OTHER LODGING 0.5% Bristol Hotel Co.* 600 16,125 16,125 ------------ INSURANCE 2.9% American International Group 300 28,988 Chubb Corp. 200 19,425 Highlands Insurance Group* 60 1,223 Mid Ocean, Ltd. (Bermuda) 500 19,500 Providian Corp. 400 18,500 87,636 ------------ MANUFACTURING 2.4% Case Corp. 700 37,188 Johnson Controls 300 21,525 Varity Corp.* 400 15,100 73,813 ------------ METALS/MINING 1.5% Aluminum Co. of America (ALCOA) 300 17,025 Inco, Ltd. 500 15,937 Phelps Dodge Corp. 200 12,225 45,187 ------------ OIL & GAS 5.0% Amoco Corp. 200 13,900 Halliburton Company 600 32,925 Mobil Corp. 300 32,887 Panhandle Eastern Corp. 1,200 34,350 Phillips Petroleum Co. 300 10,500 Smith International * 700 14,262 Williams Companies, Inc. 300 14,250 153,074 ------------ PAPER/FOREST PRODUCTS 1.2% Champion International Corp. 400 16,000 Willamette Industries 400 21,000 37,000 ------------ PHARMACEUTICALS 1.4% American Home Products Corp. 300 29,550 Glaxo Wellcome Plc 500 13,687 43,237 ------------ PRINTING & PUBLISHING 0.7% Harcourt General, Inc. 500 21,687 21,687 ------------ RESTAURANTS/FOOD SERVICES 0.5% Wendy's International, Inc. 800 14,500 14,500 ------------ RETAILING 4.7% American Stores Co. 400 11,650 Circuit City Stores, Inc. 800 23,700 Dayton-Hudson Corp. 500 37,187 Kroger Co.* 1,100 40,837 May Department Stores 400 18,650 MSC Industrial Direct Co., Inc.* 500 13,875 145,899 ---------- ------------ SHIPPING/TRANSPORTATION 1.4% CSX Corp. 600 26,925 Canadian National Railway Co.* 1,000 17,250 44,175 ------------ STEEL 0.5% USX-US Steel Group, Inc. 500 16,375 16,375 ------------ TELECOMMUNICATIONS 2.1% AT&T Corp., 400 25,450 GTE Corp. 400 17,150 U S West, Inc. 700 22,925 65,525 ------------ TOYS & GAMES 1.2% Mattel, Inc. 1,000 36,575 36,575 ------------ UTILITIES 2.8% CMS Energy Corp. 600 18,225 FPL Group Inc. 800 35,700 Nipsco Industries Inc. 500 18,875 Pinnacle West Capital Corp. 400 11,350 84,150 ------------ TOTAL COMMON STOCK (Cost $1,416,350 1,727,858 ------------ CONVERTIBLE PREFERRED STOCK 2.9% FINANCIAL SERVICES St. Paul Capital LLC, 6.00%, 5/31/25 Series 700 41,125 INDUSTRIAL International Paper Capital Corp., 5.25%# 400 18,340 OIL & GAS Enron Corp., 6.25% Exchange Notes, 12/13/98, ACE 1,200 29,850 TOTAL CONVERTIBLE PREFERRED STOCK (Cost $81,100) 89,315 ------------ Principal Amount (USD) Convertible Corporate Bonds 2.8% INSURANCE American Travellers Corp., 6.5%, due 10/1/95 25,000 34,875 MANUFACTURING Waban Inc., 6.5%, due 7/1/02 50,000 52,500 TOTAL CONVERTIBLE CORPORATE BONDS (Cost $73,774) 87,375 ------------ NON-CONVERTIBLE CORPORATE BONDS 3.9% FINANCE General Electric Credit Corp., 9.18%, due 12/30/08 100,000 119,461 119,461 (Cost $121,109) ------------ U.S. GOVERNMENT AND AGENCY OBLIGATIONS 26.0% U.S. Treasury Note, 5.625%, due 2/15/06 200,000 192,688 U.S. Treasury Note, 6.125%, due 9/30/00 100,000 101,516 U.S. Treasury Note, 6.5%, due 8/15/05 90,000 92,067 U.S. Treasury Bond, 8.5%, due 2/15/20 125,000 152,577 Federal Home Loan Bank, 7.54%, due 2/13 250,000 259,140 Total U.S. Government and Agency Obligations 797,988 (Cost $792,821) ------------ TOTAL LONG-TERM INVESTMENTS (Cost $2,485,154) 2,821,997 SHORT-TERM INVESTMENTS 7.4% COMMERCIAL PAPER Household Finance Corp., 5.375%, due 3/1/96 229,000 229,000 229,000 (Cost $229,000) ------------ TOTAL INVESTMENTS (Cost $2,714,154) 99.2% $3,050,997 ============ *Non-income producing securities. SEE NOTES TO FINANCIAL STATEMENTS. page 12 [logo] U.S. TREASURY INCOME PORTFOLIO Portfolio of Investments February 29, 1996 (Unaudited) LONG-TERM INVESTMENTS 87.5%
Issuer Principal Amount $ $ Value U.S. GOVERNMENT OBLIGATIONS 28.1% U.S. Treasury Bond 10.75%, due 8/15/05 60,000 79,435 U.S. Treasury Bond 8.50%, due 2/15/20 400,000 488,248 U.S. Treasury Note 6.50%, due 8/15/05 175,000 179,020 ------------ TOTAL U.S. GOVERNMENT OBLIGATIONS (Cost $748,908) 746,703 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS 15.6% Federal Farm Credit Bank, Medium Term Note 7.51%, due 2/13/98 200,000 207,188 Federal Home Loan Bank 7.54%, due 2/13/98 200,000 207,312 ------------ TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $404,875) 414,500 ------------ U.S. GOVERNMENT AGENCY SPONSORED OBLIGATIONS 7.7% Student Loan Marketing Association 7%, due 3/3/98 (Cost $199,634) 200,000 205,532 ------------ MORTGAGE PASS-THROUGH CERTIFICATES 36.1% Government National Mortgage Association, Pool #3547, 6.5%, due 3/15/94 (Cost $906,013) 994,369 958,631 ------------ TOTAL LONG-TERM INVESTMENTS (Cost $2,259,430) 2,325,366 ------------ SHORT-TERM INVESTMENTS 12.5% U.S. GOVERNMENT OBLIGATIONS 5.8% U.S. Treasury Bill, 4.84%, due 4/18/96 25,000 24,839 U.S. Treasury Bill 4.985%, due 4/18/96 130,000 129,136 ------------ TOTAL U.S. GOVERNMENT OBLIGATIONS (Cost $153,975) 153,975 ------------ U.S. GOVERNMENT AGENCY SPONSORED OBLIGATIONS 6.7% Federal National Mortgage Association 5.11%, due 3/22/96 180,000 179,463 (Cost $179,463) ------------ TOTAL SHORT-TERM INVESTMENTS (Cost $333,438) 333,438 ------------ TOTAL INVESTMENTS (Cost $2,592,868) 100.0% 2,658,804 ============
See NOTES TO FINANCIAL STATEMENTS. page 13 MONEY MARKET PORTFOLIO [logo] Portfolio of Investments February 29, 1996 (Unaudited)
Principal Issuer Amount $ $ Value U.S GOVERNMENT AGENCY DISCOUNT NOTE OBLIGATION 35.4% Federal Home Loan Mortgage Corp., (Cost $861,623) due 3/4/96 862,000 861,623 ------------ CORPORATE BONDS & NOTES 30.3% Continental Bank Corp. 9.875%, due 6/15/96, (Bank of America) 250,000 252,691 Ford Motor Credit Corp. 8.00%, due 12/1/96, 100,000 102,062 International Lease Finance 7.90%, due 10/1/96, 125,000 126,414 NCNB Corp. 8.5%, due 11/1/96, 250,000 254,232 ------------ 735,399 ------------ TOTAL CORPORATE BONDS & NOTES (Cost $735,399) FLOATING RATE NOTES 32.9% Avco Financial Services 5.53%, due 3/1/96 250,000 249,995 Student Loan Marketing Association 5.14%, due 3/5/96 300,000 299,825 General Electric Capital Corp. 5.46%, due 3/1/96 250,000 250,000 ------------ 799,820 ------------ TOTAL FLOATING RATE NOTES (Cost 799,820) TOTAL INVESTMENTS 98.6% 2,396,842 ============ (Cost 2,396,842)**
** The cost of securities is substantially the same for federal income tax purposes. Floating Rate Notes: The maturity date shown is the next interest rest date; the rate shown is the rate in effect at February 29, 1996. # = Security may only be sold to institutional buyers. * = Non-income producing securities. ACES = Automatic CM Exchange Securities ADS = American Depository Security See NOTES TO FINANCIAL STATEMENTS. page 14 [logo] STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 1996 (UNAUDITED)
U.S. Growth Capital Intl. Asset Treasury Money & Income Growth Equity Allocation Income Market Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio -------- -------- -------- -------- -------- ---------- ASSETS: Investment securities, at value (Note 1) $4,527,260 $4,905,694 $2,616,700 $3,050,997 $2,658,804 $2,396,842 Cash 603 337 145 332 808 Foreign Currency (Cost $42,760) -- -- 42,655 -- -- -- Receivables: Open forward foreign currency contracts -- -- 11,243 -- -- -- Investment securities sold -- 84,880 19,130 -- -- -- Dividends and Interest 12,047 1,641 6,150 15,349 15,949 25,986 Expense reimbursement from Distributor 6,985 2,951 39,555 14,689 3,297 21,945 Shares of beneficial interest sold 37,850 32,488 -- 8,860 -- -- -------- -------- -------- -------- -------- ---------- TOTAL ASSETS 4,584,745 5,027,991 2,735,578 3,090,227 2,678,050 2,445,581 -------- -------- -------- -------- -------- ---------- LIABILITIES: Payable for investment securities purchased -- 155,971 13,762 -- -- -- Payable for shares of beneficial interest redeemed 51 2,047 -- 8 354 7 Payable for open forward foreign currency contracts -- -- 2,445 -- -- -- Other liabilities -- 299 -- -- 5,101 88 Accrued liabilities: (Note 2) Custody fees 3,336 3,097 3,007 2,290 1,650 2,573 Other 11,331 12,417 22,478 12,447 12,362 12,492 -------- -------- -------- -------- -------- ---------- TOTAL LIABILITIES 14,718 173,831 41,692 14,745 19,467 15,160 -------- -------- -------- -------- -------- ---------- NET ASSETS: Paid in capital 3,447,785 3,485,369 2,317,023 2,466,543 2,455,934 2,430,421 Accumulated undistributed net investment income (loss) 12,204 6,263 (1,851) 13,960 26,286 6 Accumulated net realized gain (loss) on investment transactions 454,735 741,815 189,612 258,136 110,428 (6) Net unrealized appreciation/depreciation of investments and forward foreign currency transactions 655,303 620,713 189,102 336,843 65,935 -- -------- -------- -------- -------- -------- ---------- NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS $4,570,027 $4,854,160 $2,693,886 $3,075,482 $2,658,583 $2,430,421 ======== ======== ======== ======== ======== ========== Shares of beneficial interest outstanding (no par value; unlimited number of shares authorized) 375,043 381,994 254,900 282,969 277,466 2,430,412 Net asset value, redemption price per share and maximum offering price per share $ 12.19 $ 12.71 $ 10.57 $ 10.87 $ 9.58 $ 1.00 Cost of investments $3,871,957 $4,284,981 $2,436,180 $2,714,154 $2,592,868 $2,396,842
SEE NOTES TO FINANCIAL STATEMENTS. page 15 [logo} STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 29, 1996 (UNAUDITED)
U.S. Growth Capital Intl. Asset Treasury Money & Income Growth Equity Allocation Income Market Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio -------- -------- -------- -------- -------- ---------- INVESTMENT INCOME (NOTE 1C): Interest $ 24,841 $ 20,512 $ 4,512 $ 69,573 $151,109 $123,984 Dividends 48,237 32,805 30,378 24,206 -- -- Foreign taxes withheld -- (113) (5,677) -- -- -- -------- -------- -------- -------- -------- ---------- TOTAL INVESTMENT INCOME 73,078 53,204 29,213 93,779 151,109 123,984 -------- -------- -------- -------- -------- ---------- EXPENSES: Investment advisory fees (Note 2) 16,860 17,952 17,928 12,817 11,186 5,348 Administration fees (Note 2) 1,405 1,496 1,120 1,165 1,119 1,070 Sub-administration fees (Note 2) 4,215 4,488 3,362 3,496 3,356 3,209 Accounting fees -- -- 28,373 -- -- -- Custodian fees 12,056 8,177 4,800 12,698 4,005 3,168 Professional fees 17,234 18,509 21,000 19,084 13,746 16,444 Registration costs 79 79 80 79 79 85 Trustees fees 168 178 165 138 132 127 Miscellaneous expenses 2,738 2,937 9,789 2,498 3,233 9,887 -------- -------- -------- -------- -------- ---------- TOTAL EXPENSES 54,755 53,816 86,617 51,975 36,856 39,338 -------- -------- -------- -------- -------- ---------- Less fees waived by the Advisor, Administrator & Sub-Administrator (Note 2E) 22,480 23,936 22,410 17,478 15,661 9,627 Less amounts borne by VFD (Note 2) 6,985 2,951 39,555 14,689 3,297 17,945 -------- -------- -------- -------- -------- ---------- NET EXPENSES 25,290 26,929 24,652 19,808 17,898 11,766 -------- -------- -------- -------- -------- ---------- NET INVESTMENT INCOME 47,788 26,275 4,561 73,971 133,211 112,218 -------- -------- -------- -------- -------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON: Investment transactions 461,366 715,224 249,184 265,518 121,838 (6) Foreign currency transactions -- -- (9,594) -- -- -- CHANGE IN NET UNREALIZED APPRECIATION/ DEPRECIATION ON: Investments 33,086 (219,466) (183,209) 2,395 (48,671) -- Foreign currency contracts and foreign currency translations -- -- (1,867) -- -- -- -------- -------- -------- -------- -------- ---------- Net realized and unrealized gain (loss) 494,452 495,758 54,514 267,913 73,167 (6) -------- -------- -------- -------- -------- ---------- Net increase in net assets from operations $542,240 $ 522,033 $ 59,075 $341,884 $206,378 $112,212 ======== ======== ======== ======== ======== ==========
SEE NOTES TO FINANCIAL STATEMENTS. page 16 [logo] STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
Growth and Income Capital Growth International Equity Portfolio Portfolio Portfolio ------------------- ------------------- -------------------- 09/01/95 03/01/95* 09/01/95 03/01/95* 09/01/95 03/01/95* through through through through through through 02/29/96 08/31/95 02/29/96 08/31/95 02/29/96 08/31/95 -------- ------- -------- ------- -------- -------- INCREASE IN NET ASSETS FROM OPERATIONS: Net investment income $ 47,788 $ 59,617 $ 26,275 $ 29,126 $ 4,561 $ 50,982 Net realized gain (loss) on investment and foreign currency transactions 461,366 72,703 715,224 100,990 239,590 18,895 Change in net unrealized appreciation/depreciation on investments and foreign currency translations 33,086 622,216 (219,466) 840,179 (185,076) 374,178 ----------- ---------- ----------- ---------- ----------- ---------- INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 542,240 754,536 522,033 970,295 59,075 444,055 ----------- ---------- ----------- ---------- ----------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (95,201) -- (49,138) -- (57,394) -- Net realized gain on investment transactions (79,334) -- (74,399) -- (68,873) -- ----------- ---------- ----------- ---------- ----------- ---------- (174,535) -- (123,537) -- (126,267) -- ----------- ---------- ----------- ---------- ----------- ---------- TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS: Proceeds from shares sold 788,111 5,493,551 1,017,252 5,359,497 153,755 5,037,711 Reinvestment of distributions 174,535 -- 123,537 -- 126,267 -- Payment for shares redeemed: (3,006,940) (1,471) (3,013,702) (1,215) (3,000,490) (220) ----------- ---------- ----------- ---------- ----------- ---------- NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS: (2,044,294) 5,492,080 (1,872,913) 5,358,282 (2,720,468) 5,037,491 ----------- ---------- ----------- ---------- ----------- ---------- NET INCREASE (DECREASE) IN NET ASSETS (1,676,589) 6,246,616 (1,474,417) 6,328,577 (2,787,660) 5,481,546 NET ASSETS: Beginning of period 6,246,616 -- 6,328,577 -- 5,481,546 -- =========== ========== =========== ========== =========== ========== END OF PERIOD $ 4,570,027 $6,246,616 $ 4,854,160 $6,328,577 $ 2,693,886 $5,481,546 =========== ========== =========== ========== =========== ==========
* Commencement of operations. SEE NOTES TO FINANCIAL STATEMENTS. page 17 [logo]
U.S. Treasury Asset Allocation Income Money Market Portfolio Portfolio Portfolio ------------------- ------------------- -------------------- 09/01/95 03/01/95* 09/01/95 03/01/95* 09/01/95 03/01/95* through through through through through through 02/29/96 08/31/95 02/29/96 08/31/95 02/29/96 08/31/95 -------- ------- -------- ------- -------- -------- INCREASE IN NET ASSETS FROM OPERATIONS: Net investment income $ 73,971 $ 102,855 $ 133,211 $ 162,500 $ 112,218 $ 141,356 Net realized gain (loss) on investment and foreign currency transactions 265,518 81,344 121,838 69,608 (6) 134 Change in net unrealized appreciation/depreciation on investments and foreign currency translations 2,395 334,448 (48,671) 114,606 -- -- ----------- ---------- ----------- ---------- ----------- ---------- INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 341,884 518,647 206,378 346,714 112,212 141,490 ----------- ---------- ----------- ---------- ----------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (162,866) -- (269,425) -- -- -- Net realized gain on investment transactions (88,726) -- (81,018) -- (112,346) (141,356) ----------- ---------- ----------- ---------- ----------- ---------- (251,592) -- (350,443) -- (112,346) (141,356) ----------- ---------- ----------- ---------- ----------- ---------- TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS: Proceeds from shares sold 188,497 5,027,177 71,287 5,043,986 334,753 5,295,109 Reinvestment of distributions 251,592 -- 350,443 -- 112,287 141,356 Payment for shares redeemed: (3,000,633) (90) (3,009,000) (782) (3,438,837) (14,247) ----------- ---------- ----------- ---------- ----------- ---------- NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS: (2,560,544) 5,027,087 (2,587,270) 5,043,204 (2,991,797) 5,422,218 ----------- ---------- ----------- ---------- ----------- ---------- NET INCREASE (DECREASE) IN NET ASSETS (2,470,252) 5,545,734 (2,731,335) 5,389,918 (2,991,931) 5,422,352 NET ASSETS: Beginning of period 5,545,734 -- 5,389,918 -- 5,422,352 -- ----------- ---------- ----------- ---------- ----------- ---------- END OF PERIOD $ 3,075,482 $5,545,734 $ 2,658,583 $5,389,918 $ 2,430,421 $5,422,352 =========== ========== =========== ========== =========== ==========
* Commencement of operations. SEE NOTES TO FINANCIAL STATEMENTS. page 18 [logo] SELECTED DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH PERIOD INDICATED (Unaudited)
Growth and Income Capital Growth International Equity Portfolio Portfolio Portfolio ------------------ ------------------ -------------------- 09/01/95 03/01/95* 09/01/95 03/01/95* 09/01/95 03/01/95* through through through through through through 02/29/96 08/31/95 02/29/96 08/31/95 02/29/96 08/31/95 ------- ------- ------- ------- ------- --------- PER SHARE OPERATING PERFORMANCE Net Asset Value, Beginning of Period $11.48 $10.00 $11.90 $10.00 $10.89 $10.00 ------- ------- ------- ------- ------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.223 0.110 0.104 0.055 0.020 0.101 Net Gains or Losses in Securities (both realized and unrealized) 1.032 1.370 1.063 1.845 0.210 0.789 ------- ------- ------- ------- ------- --------- TOTAL FROM INVESTMENT OPERATIONS 1.255 1.480 1.167 1.900 0.230 0.890 ------- ------- ------- ------- ------- --------- LESS DISTRIBUTIONS: Dividends from net investment income 0.300 -- 0.142 -- 0.320 -- Distributions from capital gains 0.250 -- 0.215 -- 0.230 -- ------- ------- ------- ------- ------- --------- Total Distributions 0.550 -- 0.357 -- 0.550 -- ------- ------- ------- ------- ------- --------- NET ASSET VALUE, END OF PERIOD $12.19 $11.48 $12.71 $11.90 $10.57 $10.89 ------- ------- ------- ------- ------- --------- TOTAL RETURN + 11.22% 14.80% 9.89% 19.00% 2.22% 8.90% RATIOS/SUPPLEMENTAL DATA Net Assets, End of Period (000 omitted) $4,570 $6,247 $4,854 $6,329 $2,694 $5,482 RATIOS TO AVERAGE NET ASSETS:# RATIO OF EXPENSES 0.90% 0.90% 0.90% 0.90% 1.10% 1.09% RATIO OF NET INVESTMENT INCOME 1.71% 2.14% 0.88% 1.04% .20% 1.92% RATIO OF EXPENSES WITHOUT WAIVERS AND ASSUMPTION OF EXPENSES 1.96% 1.80% 1.80% 1.80% 3.89% 2.90% RATIO OF NET INVESTMENT INCOME WITHOUT WAIVERS AND ASSUMPTION OF EXPENSES 0.65% 1.24% (0.02%) 0.14% (2.59%) 0.11% PORTFOLIO TURNOVER RATE 22% 32% 54% 28% 80% 75%
* Commencement of operations. + Total return figures do not include the effect of any insurance or withdrawal charges. SEE NOTES TO FINANCIAL STATEMENTS. page 19 [logo]
U.S. Treasury Asset Allocation Income Money Market Portfolio Portfolio Portfolio ------------------ ------------------ -------------------- 09/01/95 03/01/95* 09/01/95 03/01/95* 09/01/95 03/01/95* through through through through through through 02/29/96 08/31/95 02/29/96 08/31/95 02/29/96 08/31/95 ------- ------- ------- ------- ------- --------- PER SHARE OPERATING PERFORMANCE Net Asset Value, Beginning of Perio $11.04 $10.00 $ 10.69 $10.00 $ 1.00 $ 1.00 ------- ------- ------- ------- ------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.515 0.205 0.906 0.322 0.026 0.028 Net Gains or Losses in Securities (both realized and unrealized) 0.350 0.835 (0.541) 0.368 -- -- ------- ------- ------- ------- ------- --------- TOTAL FROM INVESTMENT OPERATIONS 0.865 1.040 0.365 0.690 0.026 0.028 ------- ------- ------- ------- ------- --------- LESS DISTRIBUTIONS: Dividends from net investment income 0.670 -- 1.134 -- 0.026 0.028 Distributions from capital gains 0.365 -- 0.341 -- -- -- ------- ------- ------- ------- ------- --------- Total Distributions 1.035 -- 1.475 -- 0.026 0.028 ------- ------- ------- ------- ------- --------- NET ASSET VALUE, END OF PERIOD $10.87 $11.04 $ 9.58 $10.69 $ 1.00 $ 1.00 ======= ======= ======= ======= ======= ========= TOTAL RETURN + 8.11% 10.40% 3.16% 6.90% 2.63% 2.79% RATIOS/SUPPLEMENTAL DATA Net Assets, End of Period (000 omitted) $3,075 $5,546 $ 2,659 $5,390 $2,430 $5,422 RATIOS TO AVERAGE NET ASSETS:# RATIO OF EXPENSES 0.85% 0.85% 0.80% 0.80% 0.55% 0.55% RATIO OF NET INVESTMENT INCOME 3.19% 3.86% 5.99% 6.19% 5.26% 5.46% RATIO OF EXPENSES WITHOUT WAIVERS AND ASSUMPTION OF EXPENSES 2.24% 1.65% 1.51% 1.62% 1.84% 1.21% RATIO OF NET INVESTMENT INCOME WITHOUT WAIVERS AND ASSUMPTION OF 1.80% 3.06% 5.28% 5.37% 3.97% 4.80% PORTFOLIO TURNOVER RATE 33% 45% 61% 46% -- --
* Commencement of operations. + Total return figures do not include the effect of any insurance or withdrawal charges. # Short periods have been annualized. SEE NOTES TO FINANCIAL STATEMENTS. page 20 [logo] NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES--Mutual Fund Variable Annuity Trust (the "Trust") was organized on April 14, 1994 as a Massachusetts business trust, and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was established to provide a funding medium for variable annuity contracts issued by life insurance companies. Shares of the Trust are issued only to insurance company separate accounts in connection with the variable annuity contracts. The Trust issues six separate series of shares (the "Portfolio(s)") each of which represents a separately managed portfolio of securities with its own investment objectives. The Portfolios are the Growth and Income Portfolio ("GIP"), Capital Growth Portfolio ("CGP"), International Equity Portfolio ("IEP"), Asset Allocation Portfolio ("AAP"), U.S. Treasury Income Portfolio ("USTIP"), and Money Market Portfolio ("MMP"). The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. THE FOLLOWING IS A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE PORTFOLIOS: A. Valuation of Investments--Equity securities and options are valued at the last sale price on the exchange on which they are primarily traded, including the NASDAQ National Market. Securities for which sale prices are not available and other over-the-counter securities are valued at the last quoted bid price. Bonds and other fixed income securities (other than short-term obligations), including listed issues, are valued on the basis of valuations furnished by a pricing service. In making such valuations, the pricing service utilizes both dealer-supplied valuations and electronic data processing techniques that take into account appropriate factors such as institutional-sized trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, without exclusive reliance upon quoted prices. Short-term obligations are valued at amortized cost if acquired with fewer than 61 days to maturity, or at value, based on quoted exchange or over-the-counter prices, until the 61st day prior to maturity and thereafter by amortizing the value on the 61st day to par at maturity. Portfolio securities for which there are no such quotations or valuations are valued at fair value as determined in good faith by or at the direction of the Trustees. B. Security Transactions and Investment Income-- Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on the identified cost basis. Interest income is accrued as earned. Dividend income is recorded on the ex-dividend date. C. Repurchase agreements--It is the portfolios' policy that all repurchase agreements are fully collateralized by U.S. Treasury and Government agency securities. All collateral is held by the Trust's custodian bank, sub-custodian or a bank with which the custodian bank has entered into a sub-custodian agreement or is segregated in the Federal Reserve Book Entry System. In connection with transactions in repurchase agreements, if the seller defaults and the value of the collateral declines, or if the seller enters into an insolvency proceeding, realization of the collateral by the Trust may be delayed or limited. D. Foreign Currency Translations--The books and records of the Portfolios are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the official exchange rates, or at the mean of the current bid and asked prices of such currencies against the U.S. dollar last quoted by a major bank on the following basis: (1) Market value of investment securities, other assets and liabilities: at the closing rate of exchange at the balance sheet date. (2) Purchases and sales of investment securities and income and expenses: at the rates of exchange prevailing on the respective dates of such transactions. Reported realized foreign exchange gains or losses arise from disposition of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the portfolios' books on the transaction date and the U.S. dollar equivalent of the amounts actually received or paid. Unrealized foreign exchange gains and losses arise from changes (due to the changes in the exchange rate) in the value of foreign currency and other assets and liabilities denominated in foreign currencies which are held at period end. E. Forward Foreign Currency Exchange Contracts--A forward currency contract is an obligation to purchase or sell a specific currency for an agreed price at a future date. Each day the forward contract is open, changes in the value of the contract are recognized as unrealized gains or losses by "marking to market." When the forward contract is closed, or the delivery of the currency is made or taken, the portfolio records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the portfolio's basis in the contract. The portfolios are subject to off balance sheet risk to the extent of the value of the contract for purchases of currency and in an unlimited amount for sales of currency. page 21 NOTES TO FINANCIAL STATEMENTS (Unaudited) [logo] F. Federal Income Tax Status--It is the Trust's policy to comply individually for each portfolio with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Accordingly, no federal income tax provision is required. G. Dividends and Distributions to Shareholders--The portfolios record dividends and distributions to its shareholders on the record date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. These differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment. The difference arises due to different book and tax treatments for net realized gains (losses) on foreign currency transactions. Dividends and distributions which exceed net investment income and net realized capital gains for financial reporting purposes but not for tax purposes are reported as dividends in excess of net investment income or distributions in excess of net realized capital gains. To the extent they exceed net investment income and net realized capital gains for tax purposes, they are reported as distributions of paid-in-capital. H. Expenses--Direct expenses of a portfolio are charged to the respective Portfolio and general Trust expenses are allocated on the basis of relative net assets or on another reasonable basis. 2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES A. Investment Advisory Fees--The Chase Manhattan Bank, N.A. ("Chase"), a direct wholly-owned subsidiary of the Chase Manhattan Corporation, is the Portfolios' investment adviser (the "Adviser") and custodian (the "Custodian"). The Adviser manages the assets of the portfolios pursuant to an Advisory Agreement and, for such services, is paid an annual fee computed daily and paid monthly based on an annual rate equal to 0.80% of the International Equity Portfolio's, 0.60% of the Capital Growth and Growth and Income Portfolios', 0.55% of the Asset Allocation Portfolio's, 0.50% of the Treasury Income Portfolio's and 0.25% of the Money Market Portfolio's average daily net assets. The Adviser voluntarily waived all its fees. B. Administration Fee--Pursuant to an Administration Agreement, Chase (the "Administrator") provides certain administration services to the portfolios. For these services, the Administrator receives from each Portfolio a fee computed at an annual rate equal to 0.05% of the respective portfolio's average daily net assets. The Administrator voluntarily waived all of its fees. C. Sub-Administration Fees--Pursuant to a Sub-administration Agreement, Vista Fund Distributors, Inc. ("VFD" or the "Sub-administrator"), an indirect wholly-owned subsidiary of BISYS Group Inc., provides certain sub-administration services to the Portfolios, including providing officers, clerical staff and office space for an annual fee of 0.15% of the average daily net assets of each portfolio. The Sub-administrator voluntarily waived all of its fees. D. Waivers of Fees--For the six months period ended February 29, 1996, the Administrator, Advisor and Sub-administrator voluntarily waived fees and the Sub-administrator assumed expenses for the portfolios as follows:
U.S. Growth Capital Intl. Asset Treasury Money & Income Growth Equity Allocation Income Market Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio -------- -------- -------- -------- -------- ---------- Administration $ 1,405 $ 1,496 $ 1,120 $ 1,165 $ 1,119 $1,070 Advisory 16,860 17,952 17,928 12,817 11,186 5,348 Sub-administration 4,215 4,488 3,362 3,496 3,356 3,209 ------ ------ ------ ------ ------ -------- TOTAL WAIVERS $22,480 $23,936 $22,410 $17,478 $15,661 $9,627 ------ ------ ------ ------ ------ --------
The Sub-administrator voluntarily assumed certain expenses of the funds:
Growth and Income Portfolio $ 6,985 Capital Growth Portfolio 2,951 International Equity Portfolio 39,555 Asset Allocation Portfolio 14,689 U.S. Treasury Income Portfolio 3,297 Money Market Portfolio 17,945
page 22 [logo] NOTES TO FINANCIAL STATEMENTS (Unaudited) E. Other--Chase provides portfolio custody and fund accounting services for all of the portfolios, with the exception of the IEP for which it provides only the custody services. Compensation for such services from Chase are presented in the Statement of Operations as Custodian fees. During the year ended August 31, 1995, the Trust adopted an unfunded non-contributory defined benefit pension plan covering all independent directors of the Trust who have served as an independent director of the Trust or any of the other Vista funds for at least five years at the time of retirement. Benefits under this plan are based on compensation and years of service. Management has determined that the accrual for prior service costs is not material. In August 1995, Chemical Banking Corporation ("Chemical") and The Chase Manhattan Corporation announced that they had entered into a merger agreement which occurred on March 31, 1996. The subsequent merger of The Chase Manhattan Bank, N.A. with and into Chemical Bank is expected to occur prior to December 1996, at which time Chemical Bank will assume the Chase Manhattan name. 3. INVESTMENT TRANSACTIONS Purchases and sales of investments (excluding short-term investments) were as follows:
U.S. Growth Capital Intl. Asset Treasury & Income Growth Equity Allocation Income Portfolio Portfolio Portfolio Portfolio Portfolio --------- --------- --------- -------- ----------- SECURITIES TRANSACTIONS: Purchases (Excluding U.S. Government) $1,048,196 $2,766,465 $3,037,996 $ 628,814 -- Sales (Excluding U.S. Government) 3,246,532 5,056,029 5,995,169 1,856,113 -- Purchases of U.S. Govt. -- -- -- 597,503 $2,297,281 Sales of U.S. Govt. -- -- -- 1,295,559 4,734,484
4. FEDERAL INCOME TAX MATTERS For Federal income tax purposes, the cost and unrealized appreciation/ (depreciation) in value of the investment securities at February 29, 1996 are as follows:
U.S. Growth Capital Intl. Asset Treasury Money & Income Growth Equity Allocation Income Market Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio --------- --------- --------- --------- --------- ----------- Aggregate cost $3,871,957 $4,284,981 $2,436,180 $2,714,154 $2,592,868 $2,396,842 --------- --------- --------- --------- --------- ----------- Gross unrealized appreciation $ 712,457 $ 677,365 $ 215,371 $ 369,526 $ 70,325 -- Gross unrealized depreciation (57,154) (56,652) (35,851) (32,683) (4,390) -- --------- --------- --------- --------- --------- ----------- Net unrealized appreciation/ (depreciation) $ 655,303 $ 620,713 $ 179,520 $ 336,843 $ 65,935 -- ========= ========= ========= ========= ========= ===========
page 23 NOTES TO FINANCIAL STATEMENTS (Unaudited) [logo] 5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Transactions in shares of beneficial interest for the periods presented were as follows:
Growth Capital Intl. & Income Growth Equity Portfolio Portfolio Portfolio --------------- --------------- ----------------- 09/01/95 03/01/95* 09/01/95 03/01/95* 09/01/95 03/01/95* through through through through through through 02/29/96 08/31/95 02/29/96 08/31/95 02/29/96 08/31/95 ------ ----- ------ ----- ------ ------- Shares sold 65,542 544,409 83,725 531,860 14,517 503,579 Shares issued in re- investment of distributions 15,050 -- 10,004 -- 12,206 -- Shares redeemed (249,828) (130) (243,490) (105) (275,382) (20) ------ ----- ------ ----- ------ ------- Net increase (decrease) in Trust shares outstanding (169,236) 544,279 (149,761) 531,755 (248,659) 503,559 ------ ----- ------ ----- ------ ------- Outstanding shares at: Beginning of period 544,279 -- 531,755 -- 503,559 -- ------ ----- ------ ----- ------ ------- End of period 375,043 544,279 381,994 531,755 254,900 503,559 ====== ===== ====== ===== ====== =======
Asset U.S. Treasury Allocation Income Money Market Portfolio Portfolio Portfolio --------------- --------------- ----------------- 09/01/95 03/01/95* 09/01/95 03/01/95* 09/01/95 03/01/95* through through through through through through 02/29/96 08/31/95 02/29/96 08/31/95 02/29/96 08/31/95 -------- -------- -------- -------- -------- -------- Shares sold 17,315 502,546 7,014 504,106 334,753 5,295,101 Shares issued in re- investment of distributions 23,832 -- 35,888 -- 112,287 141,356 Shares redeemed (260,716) (8) (269,469) (73) (3,438,839) (14,246) -------- -- -------- --- ---------- ------- Net increase (decrease) in Trust shares outstanding (219,569) 502,538 (226,567) 504,033 (2,991,799) 5,422,211 -------- ------- -------- ------- ---------- --------- Outstanding shares at: Beginning of period 502,538 -- 504,033 -- 5,422,211 -- ------- ------- ------- ------- --------- --------- End of period 282,969 502,538 277,466 504,033 2,430,412 5,422,211 ======= ======= ======= ======= ========= =========
* Commencement of operations. 6. OPEN FORWARD FOREIGN CURRENCY CONTRACTS The following forward foreign currency contracts were held by the International Equity Portfolio at February 29, 1996:
Net Delivery Unrealized Value Market Gain (Local Cost Settlement Value (Loss) Currency (USD) Date USD USD --------- ------- -------- ------- ---------- PURCHASES DEM 150,000 $102,302 04/17/96 $102,380 $ 78 DEM 165,000 114,335 04/17/96 112,618 (1,717) JPY 16,000,000 153,440 03/22/96 152,712 (728) ----- ----- $370,077 $367,710 ----- ----- Sales DEM 315,000 $219,925 04/17/96 $214,998 $ 4,927 DEM 55,000 37,613 05/15/96 37,595 18 JPY 16,000,000 158,290 03/22/96 152,712 5,578 JPY 5,000,000 48,538 04/17/96 47,896 642 ----- ----- $464,366 $453,201 ----- -----
DEM -- German Deutschemark JPY -- Japanese Yen USD -- United States Dollar (C)The Chase Manhattan Bank, 1996 Vista Investment Services VCA-3 496 -----END PRIVACY-ENHANCED MESSAGE-----