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Previous: BEI TECHNOLOGIES INC, DEF 14A, 2000-01-27 |
Next: ISI STRATEGY FUND INC, NSAR-A/A, 2000-01-27 |
ISI
Strategy
Fund Shares
Directors and Officers
Edward S. Hyman Carrie L. Butler
Chairman Vice President
Joseph R. Hardiman Thomas D. Stevens
Director Vice President
Louis E. Levy Margaret M. Beeler
Director Assistant Vice President
Carl W. Vogt, Esq. Keith C. Reilly
Director Assistant Vice President
R. Alan Medaugh Charles A. Rizzo
President Treasurer
Nancy Lazar Amy M. Olmert
Vice President Secretary
David R. Borger
Vice President
Investment Objective
An open-end mutual fund seeking to maximize total return through a combination
of long-term growth of capital and current income by actively apportioning
investments between diversified investments in U.S. equity securities and
securities issued by the United States Treasury.
Investment Advisor
ISI Inc.
717 Fifth Avenue
New York, NY 10022
(800) 955-7175
Shareholder Servicing Agent
Investment Company Capital Corp.
P.O. Box 419426
Kansas City, MO 64141-6426
Distributor
ISI Group Inc.
717 Fifth Avenue
New York, NY 10022
(800) 955-7175
ISI
International Strategy & Investment
ISI
STRATEGY
FUND SHARES
(A Class of ISI Strategy Fund, Inc.)
(GRAPHIC APPEARS HERE)
SEMI-ANNUAL REPORT
November 30, 1999
<PAGE>
Investment Advisor's Report
During the first half of this fiscal year, May 1999-November 1999, the
total return of the fund was +3.54%. For the last year the return was +10.22%
and since inception on September 16, 1997 the cumulative total return has been
+28.84%. These figures assume the reinvestment of dividends and exclude the
impact of any sales charges.
The equity and bond markets have been very volatile over the last year with
equities significantly outperforming bonds. The total return of the Wilshire
5000 Index is up, while the bond markets' total return, represented by the
Lehman Treasury Index, is down for the year. Please see charts below.
(GRAPHIC APPEARS HERE)
Wilshire 5000
11/30/98 - 11/30/99
11/99 12,851.85
10/99 12,449.45
9/99 11,713.80
8/99 12,042.23
7/99 12,169.73
6/99 12,583.60
5/99 11,976.75
4/99 12,259.36
3/99 11,707.67
2/99 11,286.08
1/99 11,724.83
12/98 11,317.59
11/98 10,650.20
(GRAPHIC APPEARS HERE)
Bond Market 11/98 - 11/99
Price US Long Treasury (T 5.25% 11/28)
11/99 84-12
10/99 85-27
9/99 86-25
8/99 86-23
7/99 87-12
6/99 89-00
5/99 90-14
4/99 92-21
3/99 93-10
2/99 94-15
1/99 102-16
12/98 102-11
11/98 102-27
During the last year, the Fund generally carried a modest overweighting in
equities, which was reduced recently to a slight underweighting for equities;
currently 57.5% equities/42.5% bonds and reserves.
Asset Mix Management
The striking feature of the last year has been the growing gap in the
performance of stocks and bonds. On a simple price basis, the Wilshire 5000 is
up +20% while the 30 Year Treasury bond is down -18%. The bond market and the
Federal Reserve have grown wary of the long term inflation implications of the
U.S. economy's high growth performance. The Federal Reserve has raised rates
three times this year totaling an increase of 75 basis points. Long Term
Treasury yields have jumped 116 basis points. At the same time stocks,
represented by the Wilshire 5000 Index, have turned in a strong performance
moving up from 10,700 to 12,800 over the last year.
The Fund manages the mix between stocks/bonds and cash to produce a good
total return while controlling volatility. Over the first nine months of the
last year, the Fund's portfolio emphasized stocks, having a weighting of between
63.9% to 67.3% in equities. In the most recent three months, the mix was
changed, reducing equities to a 57.5% representation. ISI expects that rates
will continue to edge up until the economy slows. At the same time, the
prospects of a slowing economy should curtail the pace of equity performance.
For the moment, the recent equity sale proceeds are being held in reserve to
dampen portfolio volatility.
1
<PAGE>
Investment Advisor's Report (continued)
Please refer to the table below and the sections on Equity and Bond
Management which follow the table.
Asset Mix Management
Percent of Portfolio Stock and Bond
ISI Strategy Fund Index Price Performance
- ---------------------------------------------------------------------------
Bonds & Wilshire U.S. Long
Equities Cash Index Treasury
- ---------------------------------------------------------------------------
Nov. 98 63.9% 36.10% 10,700 $102.84
Feb. 99 64.9% 35.10% 11,300 $94.47
May 99 67.1% 32.90% 12,000 $90.44
Aug. 99 67.3% 32.70% 12,050 $86.72
Nov. 99 57.5% 42.50% 12,800 $84.38
Equity Management
The goal of the Fund's equity portfolio is to provide broad exposure to the
U.S. equity market as represented by the Wilshire 5000, the broadest measure of
the U.S. equity market. Currently, the equity portfolio has 1,565 names.
Wilshire Associates, the creator of the index, manages the equity portion of the
Strategy Fund. The portfolio is constructed to match the index as closely as is
possible on the basis of capitalization and industry. The Fund's industry
profile compared to the Wilshire 5000 Index is very similar. Using a broad 39
industry classification, the variance between the Fund and the index is only
minor. The portfolio also tracks the index on a capitalization basis. For
example, at the large capitalization end of the market, the top ten holdings are
very close to the index. Please see table in the next column for the top ten
holdings. At the other extreme, the smallest 30% of all stocks in the market
(7,109 stocks) carry a weighting of only 0.23%. The Fund has a similar weighting
of 0.22% for the smallest stocks.
Top 10 Holdings
(As of 11/30/99)
ISI Strategy Fund Wilshire 5000
Equity Portfolio % Market
Company % Market Value Value
- ------------------------------------------------------------------------------
Microsoft Corp. 3.27% 3.18%
General Electric Co. 2.92 2.92
Cisco System, Inc. 2.03 1.98
Intel Corp. 1.79 1.73
Wal Mart Stores, Inc. 1.79 1.75
Lucent Technologies 1.57 1.53
Exxon Mobil Corp. 1.37 1.88
International Business
Machines 1.33 1.27
Merck & Co., Inc. 1.32 1.26
Citigroup, Inc. 1.28 1.24
Subtotal 18.67% 18.74%
Bond Management
As yields rose from 5.25% to 6.00%, the Fund's bond section was scaled back
in duration from 9.5 years to 7.5 years. At that point, the bond portfolio's
duration was extended a bit, back to an 8.0 year duration. Higher rates,
however, have so far not slowed the economy. Recently, ISI has turned cautious
on the near term direction of interest rates. As a result, the duration of the
bond portfolio, including reserves, has been reduced from 8.0 years to 4.0
years. We expect higher rates will eventually slow the economy, most likely in
the second and third quarters of 2000. From that
2
<PAGE>
Investment Advisor's Report (concluded)
point, bonds and stocks should both perform well. Please refer to ISI's Outlook
For The Economy, Money and Markets report which follows this letter.
Bond Management
Strategy Fund Lehman Brothers
Bond Portfolio Treasury Index Yield on
Duration (Yrs.) Duration (Yrs.) Long Treasury
- ----------------------------------------------------------------------
Nov. 98 9.50 5.64 5.28%
Feb. 99 7.50 5.60 5.77%
May 99 8.00 5.52 6.05%
Aug. 99 8.00 5.42 6.33%
Nov. 99 4.00 5.37 6.44%
We appreciate the vote of confidence you have given the newest member
of the ISI Family of Funds.
Sincerely,
/s/ R. ALAN MEDAUGH
R. Alan Medaugh
President
December 27, 1999
3
<PAGE>
Outlook For The Economy, Money And Markets
Overview
Our outlook focuses on the stock market's influence on the U.S. economy and
the relationship between a strong U.S. economy and prospects for global growth.
In our view, the likely course is for a strong U.S. and world economy early in
2000. We see this growth spurt causing Central Banks around the world to push up
short term rates. Bond markets are already on the defensive; in the U.S. long
term rates are up more than short term rates. These rate actions should cause a
growth pause in the second and third quarter of next year. This is also likely
to dampen equity gains for a while next year. Overall, we expect financial
markets will turn in a good performance for the full year because inflation will
remain restrained.
The Near Term
We expect four forces to lift U.S. growth. First, and most important, the
stock market surge is driving up retail sales. Our work shows a close
correlation between a rise in the S&P Index and retail sales. So, for each 1%
rise in the S&P Index during the fourth quarter, there is a 0.8% gain in fourth
quarter retail sales. Second, the economy has tended to firm early in the new
year. A building seasonal reflecting rising bonus pay and earlier tax refunds
has caused this strength. Third, money growth due to Y2K preparation has surged.
This rapid growth helps explain the stock market's surge. Fourth, foreign
economies are generally firming, lifting U.S. manufacturing. ISI's survey of
manufacturers indicates their overseas business has picked up a lot recently.
Their domestic business is also improving. The bottom line is that the U.S.
economy is hitting on all cylinders and is likely to accelerate in the near
term. We have lifted our economic growth estimate from 4.0% to 4.5% in the
fourth quarter. Please see table below.
ISI Forecast Table
<TABLE>
<CAPTION>
ISI Forecast
99:1Q 99:2Q 99:3Q 99:4Q 00:1Q 00:2Q
- --------------------------------------------------------------------------------------------------
<S><C>
Nominal GDP 5.7% 3.3% 6.7% 6.0% 6.0% 4.5%
GDP Deflator 1.9 1.4 1.1 1.5 1.5 1.5
RealGDP 3.7 1.9 5.5 4.5 4.5 3.0
30 Year Bond Yield* 5.6 6.0 6.1 6.4 6.5 5.8
Fed Funds Rate* 4.7 5.0 5.3 5.5 5.7 5.7
S&P 500 Operating
EPS** $48 $51 $52 $53 $55 $55
Y/Y % Change 7% 15% 22% 16% 15% 8%
</TABLE>
*End of Quarter
**S&P 500 EPS, seasonally adjusted, annual rate.
First Half of 2000
We expect that growth here and abroad will slow as we enter the second
quarter. The causes are likely to be a reversal of the seasonal strengths of the
first quarter and higher interest rates. It is also possible for Japan to
stumble back into a recession by reporting a second quarter of declining GDP
when they release the fourth quarter's numbers. There may also be a downshifting
in Information Technology spending after the long burst for Y2K. Energy prices
are up around the world by double digit gains this year. This serves as a tax
increase on consumers and may slow spending after the holidays. Slower growth
would take away the threat of inflation, and that would lead to lower bond
interest rates. Overall, we expect that the year 2000 will produce good returns
for stocks and bonds after some early in the year jitters.
4
<PAGE>
SEC Calculations
The shareholder letter included in this report contains statistics designed
to help you evaluate the performance of your Fund's management. The Securities
and Exchange commission (SEC) requires that when we report such figures, we also
include the fund's total return, according to a standardized formula, for
various time periods through the end of the most recent calendar quarter. The
SECtotal return figures differ from those we reported because the time periods
may be different and because the SEC calculation includes the impact of the
Fund's currently effective 4.45% maximum sales charge.
AVERAGE ANNUAL TOTAL RETURN
% Return with
Periods ended 11/30/99: Sales Charge
- -----------------------------------------------------------------------------
One Year 5.53%
Since Inception (9/16/97) 8.04%
These total returns correspond to those experienced by individual
shareholders only if their shares were purchased on the first day of each time
period and the maximum sales charge was paid.
Any performance figures shown are for the full period indicated. Since
investment return and principal value will fluctuate, an investor's shares may
be worth more or less than their original cost when redeemed. Past performance
is not an indicator of future results.
5
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--50.6%
20th Century Industries 200 $ 3,875
3Com Corp.* 600 23,887
A.G. Edwards & Sons, Inc. 200 5,950
AAR Corp. 100 1,650
Abbott Laboratories 2,200 83,600
Abercrombie & Fitch Co.-- Class A 204 6,604
Ackerley Group, Inc. 200 3,275
ACNielsen Corp. 100 2,481
Acxiom Corp.* 100 1,778
Adaptec, Inc. 200 10,775
ADC Telecommunications, Inc.* 200 10,662
Administaff, Inc.* 300 5,025
Adobe Systems, Inc. 200 13,737
Adtran, Inc.* 100 3,900
Advance Paradigm, Inc. 100 3,975
Advanced Energy Industries* 100 3,362
Advanced Fibre Communications 100 2,781
Advanced Micro Devices, Inc.* 200 5,650
Aegon N.V. ADR* 0 56
AES Corp.* 300 17,381
Aetna, Inc. 200 10,925
Affiliated Computer Services, Inc.-- Class A 100 3,744
Affiliated Managers Group, Inc. 200 5,950
Aflac, Inc. 400 19,150
Aftermarket Technology 100 875
Ag-Chem Equipment Co., Inc. 100 1,269
AGCO Corp. 100 1,269
Agribrands International* 100 4,706
Air Express International Corp. 100 3,225
Air Products & Chemicals, Inc. 400 12,950
Airborne Freight Corp. 100 2,319
Airlease, Ltd. 100 1,169
AK Steel Holding Corp. 100 1,656
Albany International Corp.-- Class A 204 3,442
Albertson's, Inc. 615 19,642
Alcoa 560 36,680
Allegheny Energy, Inc. 200 5,800
Allegheny Technologies 150 3,778
Allegiance Telecom, Inc.* 100 7,387
Allen Telecom, Inc. 100 937
Allergan, Inc. 100 9,837
Alliance Capital Mgmt Holding LP 300 9,000
Alliant Energy Corp. 100 2,706
Allied Capital Corp. 200 4,050
Allied Products Corp.* 200 725
Allied Waste Industries, Inc.* 300 2,437
Allied-Signal, Inc. 800 47,850
Allmerica Financial Corp. 100 5,519
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Allstate Corp. 1,200 $ 31,425
ALLTEL Corp. 467 40,395
Alpha Industries, Inc.* 100 6,050
Alphanet Solutions, Inc. 100 462
Altera Corp.* 300 16,162
Alterra Healthcare Corp. 400 3,025
Alyn Corp.* 100 231
ALZA Corp.* 140 6,046
Amazon.com, Inc. 500 42,531
AMBAC, Inc. 100 5,450
AMC Entertainment, Inc. 300 3,037
Amcol International Corp. 550 9,762
Amcore Financial, Inc. 100 2,525
Amerada Hess Corp. 100 5,794
Amerco 100 2,644
Ameren Corp. 200 6,925
America Online, Inc.* 3,160 229,692
American-- Classic Voyages Co. 100 2,900
American Axle & Mfg. Holdings 200 2,575
American BanCorp. Ohio 100 1,756
American Biltrite, Inc. 100 1,487
American Dental Partners 200 1,562
American Eagle Outfitters 100 4,569
American Electric Power Co., Inc. 300 9,412
American Express Co. 600 90,787
American Financial Group, Inc. 100 2,694
American General Corp. 400 29,325
American Home Products Corp. 1,900 98,800
American International Group, Inc. 2,257 233,087
American Management Systems, Inc. 100 2,937
American Power Conversion Corp. 200 4,762
American Retirement Corp. 100 862
American Standard Co., Inc.* 100 3,894
American Tower Corp. 200 5,225
American Water Works Co., Inc. 100 2,556
Amerisource Health Corp.-- Class A 200 2,475
AmeriTrade Holding Corp. 300 6,787
Amfm, Inc.* 249 17,640
Amgen, Inc.* 1,600 72,900
Amkor Technology, Inc. (a) 200 5,400
Amli Residential Properties 400 8,525
AMR Corp. 200 12,175
Amsouth Bancorp 549 12,391
Anadarko Petroleum Corp. 200 6,025
Analog Devices, Inc.* 200 11,487
Andrew Corp.* 200 2,787
Anesta Corp. 100 1,462
Anheuser Busch 700 52,369
</TABLE>
6
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Answerthink Consulting Group 300 $ 7,781
Antec Corp. 100 5,600
AON Corp. 450 16,059
Apache Corp. 200 7,162
Apartment Investment & Management Co. 152 5,652
Apogee Enterprises, Inc. 400 2,425
Apollo Group, Inc.-- Class A* 100 2,687
Apple Computer, Inc. 200 19,575
Applebee's International, Inc. 100 3,012
Applied Materials, Inc.* 500 48,719
Applied Micro Circuits Corp. 100 8,312
Arabian Shield Development Co. 100 106
Arch Coal, Inc. 200 1,950
Archer-Daniels-Midland Co. 1,076 13,386
Archstone Communities Trust 300 6,019
Area Bankshares Corp. 200 5,025
Aremissoft Corporation 100 1,700
Argonaut Group, Inc. 100 2,312
Argosy Gaming Corp. 100 412
ARI Network Services, Inc. 300 1,631
Ariba, Inc. 100 18,056
Arnold Industries, Inc. 100 1,269
Arrow Electronics, Inc.* 200 4,575
Arrow Financial Corp. 250 5,000
Arrow International, Inc. 100 2,994
Art Technology Group* 100 6,350
Ashland 100 3,375
Aspen Technology, Inc. 400 7,550
Associated Banc-Corp. 100 3,906
Associated Estates Realty Corp. 200 1,487
Associates First Capital Corp. 1,024 34,048
At Home Corp. Series A 516 25,063
AT&T Corp. 4,638 259,148
Atlantic Coast Airlines, Inc.* 100 2,075
Atlantic Richfield Co. 500 48,187
Atlas Air, Inc.* 100 2,519
Atmel Corp. 100 4,481
Atrion Corp. 300 3,562
Authentic Fitness Corp. 100 2,069
Automatic Data Processing, Inc. 900 44,437
Autonation 600 5,587
Autozone, Inc.* 300 8,269
Avalonbay Communities, Inc. 100 3,237
Avery Dennison 200 11,875
Avid Technology, Inc.* 300 3,319
Avis Rent A Car, Inc. 100 1,912
Avista Corp. 100 1,625
Aviva Petroleum, Inc. 500 16
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Avnet, Inc. 100 $ 5,494
Avon Products, Inc. 500 18,219
AVT Corp.* 100 4,019
Avx Corp. 100 4,094
Axa Financial, Inc. 700 23,537
Aztec Technology Partners 20 81
Baker Hughes, Inc. 570 14,392
Baldor Electric Co. 200 3,912
Bank of America 2,523 147,595
The Bank of New York Co., Inc. 1,100 43,863
Bank of South Carolina 100 1,400
Bank One Corp. 1,736 61,194
Bard, C.R., Inc. 100 5,431
Barnes & Noble, Inc. 100 2,456
Barnett, Inc. 100 878
Barr Laboratories, Inc. 100 3,150
Bassett Furniture Industries, Inc. 200 3,187
Bausch & Lomb, Inc. 100 5,481
Baxter International, Inc. 400 27,025
BB&T Corp. 467 15,002
Bea Systems, Inc. 100 8,125
Bear Stearns Co., Inc. 220 8,999
Beckman Coulter 100 4,775
Becton, Dickinson & Co. 400 10,900
Bed, Bath & Beyond, Inc.* 200 6,250
Bell Atlantic Corp. 2,300 145,619
Bell Industries, Inc. 100 494
BellSouth Corp. 2,800 129,325
Belo, (A.H.) Corp.-- Class A 100 1,800
Bemis Co., Inc. 100 3,150
Bergen Brunswig Corp. 400 3,300
Beringer Wine Estates Holdings, Inc. 100 4,162
Berkshire Hathaway, Inc.-- Class B* 5 9,325
Berkshire Hathaway, Inc.-- Class A* 2 114,600
Best Buy Co., Inc.* 300 18,750
Bestfoods 400 21,925
Bethlehem Steel Corp. 100 625
Beverly Enterprises, Inc.* 100 400
Beyond.com 300 3,075
BI, Inc. 100 750
Biogen, Inc.* 200 14,612
Biomet, Inc.* 200 6,337
Bisys Group, Inc.* 100 5,794
BJ Services Co.* 200 6,975
BJ's Wholesale Club, Inc.* 100 3,737
Black & Decker Corp. 100 4,487
Blonder Tongue Laboratories, Inc. 100 537
Blyth Industries, Inc.* 100 2,400
</TABLE>
7
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
BMC Software, Inc.** 400 $ 29,125
Bob Evans Farms, Inc. 200 2,987
Boeing Co. 1,400 57,137
Boise Cascade Office Products Corp. 200 2,300
Borders Group, Inc.* 100 1,550
Boston Properties, Inc.* 100 2,831
Boston Scientific Corp.* 700 14,787
Bowater, Inc. 100 4,900
Brady (W. H.) Co.-- Class A 100 3,069
Brandywine Realty Trust 100 1,681
Brightpoint, Inc.* 1,000 11,062
Bristol Hotel & Resorts, Inc. 50 253
Bristol-Myers Squibb Co. 2,900 211,881
Broadcom Corp.-- Class A* 100 17,906
Broadwing 409 11,934
Brooke Group, Ltd.* 105 1,831
Brookstone, Inc. 200 3,375
Brown Shoe Company, Inc. 200 3,150
Brown-Forman Corp.-- Class B 100 6,269
Brunswick Corp. 200 4,362
Buckeye Technology, Inc. 100 1,587
Burlington Industries, Inc.* 300 1,106
Burlington Northern Corp. 700 20,300
Burlington Resources, Inc. 300 10,087
Burnham Pacific Properties, Inc. 100 981
Burr-Brown Corp.* 100 4,431
Bush Boake Allen, Inc. 100 2,512
Butler Manufacturing Co. 100 2,144
BWAY Corp. 100 575
Cabletron Systems, Inc.* 200 4,587
Cablevision Systems Corp.-- Class B* 100 6,856
Cabot Corp. 100 1,906
Cabot Industrial Trust 400 7,350
Cadence Design Systems, Inc.* 400 7,100
Callaway Golf Co. 100 1,456
Callon Petroleum Co. 300 3,562
Calpine Corp.* 100 5,900
Cambrex Corp. 100 3,150
Cambridge Technology Partners* 300 4,312
Campbell Soup 600 26,775
Capital One Financial Corp. 300 13,969
Caraustar Industries, Inc. 100 2,444
Cardinal Health, Inc. 424 22,180
Careinsite 100 5,237
Carematrix, Inc. 200 412
Caribiner International, Inc. 400 3,550
Carlisle Companies, Inc. 100 3,356
Carnival Corp.-- Class A 900 39,712
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Carolina First Corp. 100 $ 2,044
Carolina Power & Light Co. 300 9,037
Carpenter Technology Corp. 100 2,625
Carter-Wallace, Inc. 300 5,419
Cascade Corp. 400 3,800
Cascade Financial Corp. 125 1,594
Cascade Natural Gas Corp.* 100 1,756
Casella Waste Systems, Inc. 300 4,931
Casey's General Stores, Inc. 100 1,275
Catalina Marketing Corp.* 100 9,531
Catellus Development Corp.* 200 2,587
Caterpillar, Inc. 500 23,187
CBS Corp. 1,081 56,212
CCB Financial Corp. 100 4,337
CDI Corp. 100 2,425
CellStar Corp. 300 2,887
Cendant Corp.* 1,040 17,225
Centennial Cellular 100 6,050
Centex Corp. 100 2,375
Centigram Communications Corp.* 300 4,200
Central & South West Corp. 400 8,000
Central Hudson Gas & Electric Corp. 100 3,344
Central Newspapers, Inc.-- Class A 100 3,781
Centura Banks, Inc. 100 4,650
Centurytel, Inc. 225 10,350
Ceridian Corp. 300 6,487
CH Robinson Worldwide 100 3,487
Champion Enterprises, Inc.* 100 856
Champion International Corp. 100 5,544
Charles Schwab Corp. 1,200 45,525
Charter One Financial 325 7,059
Chase Brass Industries, Inc.* 100 881
Chase Manhattan Corp. 1,200 92,700
Cheap Tickets, Inc.* 100 1,669
Checkfree Holdings, Corp. 100 6,569
Checkpoint System, Inc.* 200 1,587
Chesapeake Corp. 100 3,194
Chevron Corp. 1,000 88,562
Children's Comprehensive Services, Inc. 400 2,700
Children's Place Retail Stores, Inc.* 100 2,469
Chiquita Brands International, Inc. 100 437
Chiron Corp.* 300 9,844
Choice Hotels Corp., Inc. 300 4,706
Chris-Craft Industries, Inc. 3 208
The Chubb Corp. 300 16,069
CIENA Corp. 200 8,787
Cigna Corp. 300 24,675
Cincinnati Financial Corp. 300 10,050
</TABLE>
8
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Cinergy 300 $ 7,594
Cintas Corp. 100 4,594
Circle.com 75 975
Circuit City Stores, Inc. 300 14,550
Cirrus Logic* 400 5,550
Cisco Systems, Inc.* 4,755 424,133
CIT Group, Inc.-- Class A 300 6,225
Citadel Communications Corp. 100 5,006
Citation Corp. 100 1,694
Citigroup, Inc. 4,958 267,139
Citizens First Financial Corp. 100 1,250
Citizens Utilities Co.-- Class B 500 6,187
Citrix Systems, Inc* 100 9,487
City National Corp. 100 3,606
CK Witco Corporation 192 2,056
CKE Restaurants, Inc. 110 708
Claire's Stores, Inc. 100 2,169
Clarent Corp. 100 8,125
Clayton Homes, Inc. 225 2,292
Clear Channel Communications, Inc. 531 42,679
Cleco Corp. 100 3,262
Clorox Company 368 16,399
CMG Information Services* 100 14,712
CMS Energy Corp. 200 6,650
CNA Financial Corp. 300 11,700
CNA Surety Corp. 100 1,112
CNET, Inc. 100 5,094
CNF Transportation 100 3,325
Coastal Corp. 300 10,575
Coca-Cola Co. 3,600 242,325
Coca-Cola Enterprises, Inc. 600 12,712
Colgate-Palmolive Co. 900 49,387
Colonial Bancgroup 200 2,287
Columbia Energy Group 150 9,412
Columbia/HCA Healthcare 800 21,800
Comarco, Inc.* 100 1,825
Comcast Corp.-- Class A Special 1,100 49,706
Comdisco, Inc. 300 7,237
Comerica, Inc. 250 13,250
Comfort Systems USA, Inc. 200 1,650
Commerce Bancorp, Inc. 106 4,558
Commerce Bancshares, Inc. 110 4,141
Commercial Federal Corp.* 200 3,637
Commonwealth Telephone Enterprises, Inc. 100 5,906
Commscope, Inc.* 100 4,212
Communications Systems, Inc. 200 2,325
Community Banks, Inc. 157 3,415
Compaq Computer Corp. 2,489 60,825
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Compass Bancshares, Inc. 150 $ 3,806
Compu-Dawn 500 2,828
CompUSA, Inc.* 200 1,175
Computer Associates International, Inc. 750 48,750
Computer Sciences Corp.* 200 13,050
Compuware Corp.* 600 20,287
COMSAT Corp. 100 1,900
Comverse Technology 50 6,044
Conagra, Inc. 700 16,887
Concepts Direct, Inc. 100 1,012
Concord Communications, Inc.* 100 5,350
Concord EFS, Inc. 375 9,937
Conexant Systems 300 17,775
Conning Corp. 200 1,700
Conoco Inc.-- Class B 1,000 26,187
Conseco, Inc. 583 11,806
Consolidated Edison 400 13,800
Consolidated Graphics, Inc. 100 2,244
Consolidated Natural Gas Co. 100 6,412
Consolidated Papers, Inc. 100 2,925
Consolidated Stores Corp.* 182 2,866
Constellation Energy Group 300 8,831
Continental Airlines, Inc.-- Class B* 100 3,700
Convergys Corp.* 200 5,462
Cooper Cameron Corp. 100 4,287
Cooper Industries, Inc. 200 8,587
Cooper Tire & Rubber Co. 100 1,500
Copart, Inc.* 200 5,200
Cornerstone Properties, Inc. 200 2,762
Corning, Inc. 400 37,475
Corrpro Companies, Inc. 100 725
Costco Wholesale Corp. 300 27,506
Costilla Energy, Inc.* 400 26
Coulter Pharmaceutical, Inc. 200 3,425
Countrywide Credit Industries, Inc. 200 5,625
Covance, Inc. 100 1,087
Covenant Transport, Inc.-- Class A 100 1,450
Cox Communications* 700 32,900
CPB, Inc. 300 7,594
CPI Corp. 100 2,475
Craig Corp.* 100 600
Credit Acceptance Corp.* 200 800
Cree Research, Inc.* 100 5,713
Crescent Real Estate Equities Co. 200 3,387
Critical Path, Inc.* 100 5,569
Cross (A.T.) Co.-- Class A 100 525
Crown Castle International Corp. 200 4,212
Crown Cork & Seal Co., Inc.* 200 4,075
</TABLE>
9
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Crystal Gas Storage, Inc. 100 $ 5,562
CSG Systems International, Inc.* 200 8,725
CSK Auto Corp.* 100 1,775
CSS Industries, Inc.* 100 2,137
CSX Corp. 300 10,669
CTS Corp. 100 8,019
Cullen/Frost Bankers, Inc. 100 2,850
Culp, Inc. 100 625
Cummins Engine Co., Inc. 100 4,050
CVS Corp. 562 22,304
Cyberian Outpost 100 1,194
Cybersource Corp. 100 5,962
Cymer, Inc. 100 4,000
Cypress Semiconductor Corp.* 100 2,725
Cytec Industries, Inc. 200 4,687
Cytyc Corp. 100 4,362
D & K Healthcare Resources 100 1,700
D.R. Horton, Inc. 100 1,375
DA Consulting Group 100 425
Daily Journal Corp. 100 3,400
Dain Rauscher Corp. 100 4,869
Daisytek International Corp. 200 3,975
Dallas Semiconductor Corp. 100 5,769
Dana Corp. 285 7,909
Danaher Corp. 229 11,292
Darden Restaurants, Inc. 200 3,562
Data Dimensions, Inc. 200 675
Davel Communications 200 700
Davox Corp. 100 1,675
Dawson Geophysical Co. 100 881
Dayton Hudson Corp. 700 49,394
Deere & Co. 400 17,175
Delhaize America, Inc. 300 6,619
Delia's, Inc.* 100 1,100
Dell Computer Corp. 3,700 159,100
Delphi Automotive Systems 738 11,634
Delta & Pine Land Co. 100 2,556
Delta Air Lines, Inc. 200 9,850
Deluxe Corp. 100 2,619
Dendrite International, Inc.* 100 2,750
Dentsply International* 100 2,394
Devon Energy Corp. 144 5,102
DeVry, Inc. 200 4,037
Dial Corp. 200 5,612
Diamond Offshore Drilling, Inc. 200 6,100
DII Group, Inc.* 100 6,312
Digital Microwave Corp.* 200 3,150
Dillards, Inc.-- Class A 200 3,775
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Ditech Communications 100 $ 10,350
Dollar General Corp. 351 8,599
Dollar Tree Stores, Inc. 100 4,475
Dominion Resources, Inc. 300 13,612
Donaldson, Lufkin & Jenrette, Inc. 200 10,062
Donnelly Corp.-- Class A 200 2,887
Doubleclick 100 16,006
Dover Corp. 300 13,012
Dow Chemical Co. 300 35,137
Dow Jones & Co., Inc. 100 6,062
DPL, Inc. 300 5,362
DQE, Inc. 100 3,681
Dress Barn, Inc.* 200 3,412
DST Systems* 100 6,294
DTE Energy Co. 300 9,919
Duke Power Co. 500 25,344
Duke Realty Investments, Inc. 100 1,850
Dun & Bradstreet 200 5,400
Dupont, (E.I.) de Nemours & Co. 1,500 89,156
Dura Automotive Systems, Inc. 34 705
Dura Pharmacetical, Inc.* 200 2,606
Dynegy, Inc. 300 6,750
E Trade Group, Inc.* 400 12,025
E-Tek Dynamics 100 7,500
E.piphany, Inc. 100 16,944
Eagle Geophysical, Inc. 6 0
Earthlink Network, Inc.* 100 5,237
Earthshell Container Common* 200 600
Eastman Chemical Co. 100 3,887
Eastman Kodak Co. 500 30,937
Eaton Corp. 100 7,744
Ebay 200 33,012
Ecolab, Inc. 200 6,925
Edison International, Inc. 600 15,900
Efficient Networks, Inc. 100 6,000
El Paso Energy Corp. 400 15,400
Electro Scientific Industries, Inc. 100 5,844
Electronic Arts* 100 10,487
Electronic Data Systems Corp. 700 45,019
Electronics For Imaging* 100 4,456
Eli Lilly & Co. 1,600 114,800
EMC Corp. 1,500 125,344
Emerson Electric Co. 600 34,200
Energy East Corp. 200 4,700
Engage Technology 100 4,925
Engelhard Corp. 200 3,362
Enron Corp. 1,000 38,062
Ensco International, Inc. 200 4,012
</TABLE>
10
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Entercom Communications Corp. 100 $ 5,719
Entergy 400 11,025
EOG Resources, Inc. 200 3,700
Equifax, Inc. 200 4,950
Equity Office Properties Trust 400 8,775
Equity Residential Properties Trust 200 8,037
Erie Indemnity Company 100 3,350
Eshare Technologies, Inc. 200 1,775
Estee Lauder Co.-- Class A 200 8,437
Etoys* 200 12,525
Evans & Sutherland Computer Corp.* 100 1,294
Evercell 33 610
Evergreen Resources, Inc. 200 4,200
Excel Technology, Inc. 300 4,387
Excelsior-Henderson Motorcycle 100 69
Expeditors International of Washington 100 4,075
Extended Stay America, Inc. 100 769
Exxon Corp. 3,600 285,525
F & M National Corp. 103 2,923
Fairchild Semicon Intl.-- Class A 100 2,800
Family Dollar Stores, Inc. 300 5,381
Fannie Mae 1,500 99,937
Fastenal Co. 100 3,850
FDX Corp. 400 16,875
Federal Home Loan Mortgage Corp. 1,000 49,375
Federal-Mogul Corp. 100 2,231
Federated Department Stores* 300 14,119
Felcor Lodging Trust, Inc. 168 2,856
Ferro Corp. 100 2,106
Fifth Third Bancorp 404 28,309
FileNet Corp.* 300 6,000
Financial Security Assurance Holdings, Ltd. 200 10,562
Finova Group, Inc. 100 3,719
First Data Corp. 600 25,950
First Financial Bancorp 120 2,692
First Financial Corp.-- Indiana 100 3,775
First Financial Corp./RI 100 1,300
First Health Group Corp. 100 2,519
First Midwest Bancorp, Inc. 100 4,200
First Security Corp. 300 8,437
First Tennessee National Corp. 200 6,575
First Union Corp. 1,382 53,466
First United Corp. 100 1,400
First Virginia Banks, Inc. 100 4,537
First Washington Realty Trust 300 5,362
Firstar Corp. 1,411 36,694
Firstenergy Corp. 400 9,325
Firstmerit Corp. 100 2,597
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Fiserv, Inc.* 125 $ 4,437
Flagstar Bancorp, Inc. 100 1,594
Fleet Boston Financial Corp. 1,292 48,861
Florida Progress Corp. 200 8,550
Flowers Industries, Inc. 200 3,275
Flowserve Corp. 100 1,737
Fluor Corp. 100 4,206
Flushing Financial Corp. 50 797
Focal Communication Corp. 100 2,362
Ford Motor Company 1,800 90,900
Forest Laboratories, Inc. 100 5,119
Forrester Research, Inc. 100 4,862
Fort James Corp. 300 8,625
Fortune Brands, Inc. 300 10,256
Fossil, Inc.* 150 3,150
Foster Wheeler Corp. 200 2,037
Foundation Health Systems, Inc. 200 1,687
Fountain Powerboat Industries, Inc. 100 300
Fox Entertainment Group 200 4,600
FPL Group, Inc. 300 13,125
Franchise Finance Corp. REIT 100 2,225
Franklin Resources, Inc. 400 12,575
Freedom Securities Corp. 100 1,306
Freeport-McMoran Copper &
Gold-- Class B 200 3,162
Fremont General Corp. 200 1,012
French Fragrances, Inc. 400 2,925
Friede Goldman International, Inc. 57 481
Friedmans, Inc.-- Class A 100 756
Frontline Communications Crp 100 650
Fuelcell Energy, Inc. 150 3,591
Fulton Financial Corp. 110 2,262
Funco, Inc. 200 3,450
Gadzoox Networks 100 7,900
Galileo International, Inc. 200 6,400
Gannett Company, Inc. 400 28,625
Gap, Inc. 1,275 51,637
Gartner Group-- Class B 277 3,066
Gateway, Inc.* 500 38,187
GATX Corp. 100 3,287
Gaylord Entertainment Company 100 3,019
GBC Bancorp 200 4,225
Geltex Pharmaceuticals, Inc. 300 3,187
General Cable Corp. 300 2,325
General Cigar Holdings, Inc. 100 756
General Dynamics Corp. 300 15,469
General Electric Co. 4,726 614,406
General Growth Properties, Inc. 100 2,994
</TABLE>
11
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
General Instrument Corp. 200 $ 13,100
General Mills, Inc. 400 15,075
General Motors Corp. 900 64,800
General Motors Corp.-- Class H 200 17,125
General Semiconductor, Inc. 700 9,625
Genesys Telecom Labs, Inc.* 100 5,131
Genrad, Inc.* 200 3,537
Gentex Corp.* 100 1,869
Genuine Parts Co. 300 7,725
Genzyme Corp. 17 91
Genzyme Corp.* 100 3,600
Genzyme-Molecular Oncology 10 49
Geon Co. 100 3,025
Georgia Pacific Timber Group 100 2,481
Georgia-Pacific Corp. 300 11,944
Giant Industries, Inc. 200 1,737
Gilead Sciences, Inc.* 100 4,800
Gillette Co. 1,600 64,300
Glacier Bancorp 21 362
Glatfelter (P.H.) Co. 100 1,287
Glenborough Realty Trust, Inc. 100 1,312
Glimcher Realty Trust 100 1,425
Global Industrial Technologies, Inc. 100 1,262
Global Marine, Inc.* 300 4,594
Global Telesystems Group, Inc.* 200 6,387
Globespan 100 7,687
Go.com 115 3,112
Golden State Bancorp, Inc. 200 3,887
Golden State Bancorp-Litigation Warrant 100 81
Golden State Bank 100 3,562
Golden West Financial Corp. 100 10,094
Goldman Sachs Group 100 7,512
Goodrich (B.F.) Co. 222 5,009
Goodyear Tire & Rubber Co. 200 6,750
GPU, Inc. 200 6,400
Graco, Inc. 100 3,294
Grainger (W.W.), Inc. 200 9,425
Great Atlantic & Pacific Tea Co., Inc. 100 2,544
Great Lakes Chemical Corp. 100 3,319
Great Plains Software, Inc. 100 5,344
Green Mountain Power Corp. 100 856
GreenPoint Financial Corp. 200 5,062
Greif Brothers Corp.-- Class A 100 2,950
Griffin Land & Nurseries, Inc.-- Class A 100 1,075
GTE Corp. 1,400 102,200
Guidant Corp. 500 25,000
H & R Block, Inc. 100 4,300
Haggar Corp. 200 2,425
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Halliburton Company 600 $ 23,212
Hallmark Capital Corp. 200 1,950
Hallwood Group, Inc. 300 3,787
Hambrecht & Quist Group* 100 4,975
Hannaford Brothers, Co. 100 7,269
Harcourt General, Inc. 100 3,312
Harley-Davidson, Inc. 200 12,200
Harman International Industries, Inc. 100 5,150
Harnischfeger Industries, Inc. 200 212
Harrah's Entertainment* 200 5,525
Harris Corp. 100 2,100
Harsco Corp. 100 2,981
Harte-Hanks Communications, Inc. 100 2,069
Hartford Financial Services Group, Inc. 400 18,675
Hasbro, Inc. 300 6,469
Hayes Lemmerz International, Inc. 100 1,637
Headway Corporate Resources 200 750
Health Care REIT 100 1,619
Health Management Associates, Inc.* 350 4,309
Healtheon Corp. 174 7,949
Healthplan Services Corp. 300 1,969
Healthsouth Corp. 700 3,981
Hearst-Argyle Television 100 2,175
Heartland Express, Inc.* 300 4,425
Hector Communications Corp.* 200 3,125
Heilig-Meyers Co. 400 1,450
Heinz, (H.J.) Co. 500 20,937
Helix Technology Corp. 100 4,048
Herbalife International, Inc.-- Class A 200 2,900
Hercules, Inc. 200 4,750
Herman Miller, Inc. 100 2,287
Hershey Foods Corp. 200 9,825
Hewlett-Packard Co. 1,500 142,312
Hexcel Corp.* 300 1,781
Hibernia Corp.-- Class A 200 2,537
Hickory Tech Corp. 200 2,612
High Speed Access Corp. 100 2,206
Hillenbrand Industries, Inc. 100 3,419
Hilton Hotels Corp. 400 4,025
Hispanic Broadcasting Corp.* 100 8,237
Hollinger International 200 2,512
Hollywood Park, Inc.* 100 2,019
Home Depot, Inc. 2,200 173,937
Homegold Financial 100 69
Homestake Mining Co. 300 2,475
Homestore.com 100 6,525
Hon Industries, Inc. 100 2,162
Honeywell, Inc. 200 22,387
</TABLE>
12
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Horizon Financial Corp. 200 $ 2,000
Horizon Group Properties, Inc. 20 70
Hormel Foods Corp. 100 4,456
Host Marriott Corp.* 400 3,725
Houghton Mifflin Co. 100 3,669
Household International, Inc. 706 27,931
Hubbell, Inc.-- Class B 100 2,787
Hudson United Bancorp 103 3,180
Humana, Inc. 300 2,100
Huntington Bancshares, Inc. 351 9,718
Hutchinson Technology, Inc.* 100 1,850
Hvide Marine, Inc.-- Class A 100 13
Hyperion Software Corp.* 200 5,475
I2 Technologies, Inc. 100 8,500
IBP, Inc. 200 4,412
ICG Communications, Inc. 131 2,481
ICN Pharmaceuticals, Inc. 200 4,862
ICOS Corp.* 100 3,181
IDT Corp.* 200 4,550
IDX Systems Corp. 100 2,119
Il Fornaio (America) Corp.* 300 1,800
Illinois Tool Works, Inc. 480 31,132
IMC Fertilizer Group, Inc. 200 3,225
Immunex Corp.* 200 14,175
Impath, Inc. 100 2,237
IMS Health 400 9,425
Independent Bank East 64 1,086
Indymac Mortgage Holdings, Inc. 300 3,319
Infinity Broadcasting Corp. A 200 7,287
Informatica Corp. 100 7,287
Information Resources, Inc.* 200 2,000
Informix Corp.* 300 3,300
Ingersoll-Rand Co. 200 9,687
Ingles Market, Inc.-- Class A 100 1,175
Ingram Micro, Inc.-- Class A 100 1,331
Inhale Therapeutic Systems 100 3,062
Inktomi Corp. 100 12,906
Innovex, Inc. 100 900
Input/Output, Inc 100 537
Insight Communications* 100 2,475
Insignia Financial Group 133 1,081
Integrated Electrical Services 100 1,062
Intel Corp. 4,886 374,695
Interface, Inc.-- Class A 200 900
Interim Services* 200 3,688
Intermedia Communications of Florida, Inc. 200 5,575
International Bancshares Corp. 125 5,844
International Business Machines Corp. 2,700 278,269
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
International Flavors & Fragrances, Inc. 200 $ 7,362
International Game Technology 200 3,600
International Home Foods, Inc.* 200 3,512
International Paper Co. 648 33,817
International Specialty Products 200 1,675
Internet Commerce Corp.-- Class A 100 4,000
Interpool, Inc. 200 1,775
Interpublic Group of Cos., Inc. 400 18,800
Interstate Hotels Corp. 10 34
Interworld Corp. 100 5,300
Intimate Brands 420 18,007
Intuit 200 10,000
Invacare Corp. 100 2,106
Iomega Corp. 300 1,162
Iron Mountain, Inc. 100 2,944
IRT Property Co. 100 781
Irwin Financial Corp. 100 2,050
ISS Group, Inc. 100 4,825
ITC Deltacom, Inc.* 100 2,744
Itron, Inc. 300 1,894
ITT Industries* 100 3,487
Ivax Corp. 200 4,037
IXL Enterprises, Inc. 100 3,600
J. D. Edwards & Co.* 100 2,950
J.C. Penney Co., Inc. 400 8,925
Jabil Circuit, Inc. 100 6,394
Jacobs Engineering Group, Inc. 100 3,144
JDN Realty Corp. 100 1,644
JDS Uniphase Corp. 100 22,875
Jefferson-Pilot Corp. 150 10,181
JLG Industries, Inc. 300 4,106
JLM Industries, Inc. 100 362
Jo-Ann Stores, Inc.-- Class A 300 3,919
Johns Manville Corp. 200 2,287
Johnson & Johnson 1,963 203,755
Johnson Controls, Inc. 100 5,450
Jones Apparel Group, Inc.* 200 5,337
Juniper Networks 100 27,712
Justin Industries, Inc. 200 3,112
K-V Pharmaceutical Co.-- Class A* 100 1,937
Kaiser Aluminum & Chemical Corp.* 100 662
Kaman Corp.-- Class A 100 1,187
Kana Communications 100 14,700
Kansas City Southern Industries 200 11,912
Kaufman & Broad Home Corp. 100 2,212
Kaydon Corp. 100 2,737
Keane, Inc. 100 2,700
Keebler Foods Co. 100 2,756
</TABLE>
13
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Kellogg Co. 600 $ 20,325
Kellwood Co. 100 2,075
Kennedy-Wilson, Inc. 150 1,125
Kent Electronics Corp.* 200 4,587
Kerr-McGee Corp. 173 9,904
KeyCorp 600 16,200
Keyspan Energy Corp. 288 7,398
Keystone Financial, Inc. 100 2,350
Kilroy Realty Corp. 100 1,900
Kimball International, Inc.-- Class B 200 3,312
Kimberly Clark Corp. 744 47,548
Kimco Realty Corp. 100 3,325
Kinder Morgan 150 3,047
King Pharmaceuticals 150 6,919
Kitty Hawk, Inc.* 300 2,400
KLA Instruments Corp.* 100 8,456
Klamath First Bancorp, Inc. 200 2,287
Kmart Corp.* 800 7,950
Knight-Ridder, Inc. 100 5,456
Knight/Trimark Group 200 8,238
Kohls Corp.* 200 14,438
Kollmorgen Corp. 100 913
Kroger Co. 1,200 25,575
L-3 Communications Hldgs 100 4,125
Labor Ready, Inc. 225 2,855
Laclede Gas Co. 200 4,375
Ladd Furniture, Inc. 100 2,113
Lafarge Corp. 100 2,700
Lamar Advertising Co. 100 5,738
Lancaster Colony Corp. 100 3,238
Lance, Inc. 100 1,044
Landry's Seafood Restaurants, Inc. 300 2,644
Lanier Worldwide 100 400
Lanvision Systems, Inc. 100 194
Lason Holdings, Inc. 100 2,438
Lawson Products, Inc. 100 2,275
Leap Wireless International 125 6,391
Lear Corp. 100 3,306
Lee Enterprises, Inc. 100 2,831
Legato Systems, Inc.* 100 6,753
Legg Mason, Inc. 100 3,519
Leggett & Platt, Inc. 300 6,431
Lehman Brothers, Inc. 200 15,275
Lennar Corp. 100 1,631
Level 3 Communications, Inc. 500 33,906
Level 8 Systems, Inc. 100 2,081
Lexmark International Group, Inc. --
Class A 200 16,600
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
LG&E Corp. 200 $ 4,000
LHS Group, Inc. 100 2,513
Liberty Financial Companies, Inc. 200 4,700
Lifepoint Hospitals 57 670
Ligand Pharmaceutical-- Class B* 200 2,300
Limited, Inc. 300 12,731
Lincare Holdings, Inc. 100 2,838
Lincoln National Corp. 300 12,506
Lindsay Manufacturer Co.* 150 2,522
Linear Technology Corp. 200 14,213
Linens `N Things, Inc.* 100 3,375
Lithia Motors 200 3,788
Litton Industries, Inc.* 100 4,481
Liz Claiborne, Inc. 100 3,744
Lockheed Martin Corp. 600 11,925
Loews Corp. 200 12,800
Logansport Financial Corp. 100 988
Longview Fibre Co. 100 1,275
Loral Space and Communications Ltd. 400 7,175
Louis Dreyfus Natural Gas Corp. 200 3,600
Louisiana-Pacific Corp. 200 2,450
Lowe's Cos., Inc. 600 29,888
LSI Logic Corp. 200 12,088
LTV Corp. 100 350
Lubrizol Corp. 100 2,738
Lucent Technologies, Inc. 4,503 329,007
Lycos, Inc.* 100 5,600
Lyondell Petrochemical Co. 200 2,800
M.A. Hanna Co. 300 3,131
Magellan Petroleum Corp. 200 306
Mail-Well, Inc.* 100 1,194
Mallinckrodt Group, Inc. 100 3,325
Manitowoc Co., Inc. 50 1,525
Manor Care 200 4,013
Manpower, Inc. 100 3,644
Marine Drilling Companies, Inc.* 200 3,375
Marine Transport Corp. 10 26
Mark IV Industries, Inc. 200 3,750
Marriott International-- Class A 400 13,025
Marsh and McLennan 400 31,450
Marshall & Ilsley Corp. 100 6,694
Martin Marietta Materials, Inc. 100 3,794
Masco Corp. 700 17,675
Mascotech, Inc. 200 2,400
Matlack Systems, Inc. 100 394
Mattel, Inc. 820 11,736
Maxim Integrated Products, Inc.* 200 16,063
Maxwell Technologies, Inc. 200 2,150
</TABLE>
14
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Maxxam, Inc.* 100 $ 4,544
May Department Stores Co. 500 16,813
Mays (J.W.), Inc. 100 575
Maytag Corp. 200 9,538
MBIA, Inc. 200 10,000
MBNA Corp. 1,200 30,300
McClatchy Newspapers, Inc. 100 3,594
McCormick & Co., Inc. 100 3,206
McDonald's Corp. 2,000 90,000
McGraw-Hill, Inc. 300 17,006
MCI Worldcom, Inc.* 2,754 227,776
McKesson HBOC 459 10,729
McLeod, Inc. 200 8,600
McMoRan Exploration 200 4,363
MCN Corp. 200 4,988
MDC Holdings, Inc. 300 4,481
Mead Corp. 200 7,138
Meade Instruments Corp. 100 3,038
Mech Financial, Inc. 300 10,350
Media Arts Group, Inc. 300 1,163
Media General, Inc. 100 5,100
Medialink Worldwide 100 600
Mediaone Group 900 71,325
Medical Assurance, Inc.* 100 2,194
Medical Manager Corp.* 100 6,056
Medimmune, Inc.* 100 12,019
Meditrust Corp. Paired Stock 255 1,673
Medtronic, Inc. 1,720 66,865
Mellon Financial Corp. 700 25,506
MemberWorks, Inc.* 100 2,500
Men's Wearhouse, Inc.* 100 2,575
Mentor Corp. MN 200 4,675
Mercantile Bankshares Corp. 100 3,441
Merchants New York Bancorp, Inc. 300 5,213
Merck & Co., Inc. 3,500 274,750
Meredith Corp. 100 3,781
Meristar Hospitality Corp. 300 4,650
Meristar Hotels & Resorts, Inc. 100 338
Meritor Automotive, Inc. 100 1,713
Merrill Lynch & Co., Inc. 500 40,313
Merrimac Industries, Inc. 10 78
Metamor Worldwide, Inc. 100 2,638
Methode Electronics, Inc.-- Class A 200 5,400
Metris Companies, Inc. 100 3,163
Metro-Goldwyn-Mayer, Inc. 200 4,763
Metromedia Fiber Network, Inc.* 300 11,625
MGIC Investment Corp. 200 11,300
MGM Grand, Inc.* 133 6,567
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Microage, Inc.* 200 $ 600
Microchip Technology, Inc. 100 6,338
Microfinancial 200 2,263
Micron Technology, Inc. 300 20,138
Microsoft Corp. 7,500 682,852
Milacron 100 1,456
Millennium Pharmaceuticals* 100 9,734
MindSpring Enterprises, Inc.* 200 6,313
Minerals Technologies, Inc. 100 3,950
Minnesota Mining & Manufacturing Co. 600 57,338
Mirage Resorts, Inc.* 300 3,844
Mississippi Chemical Corp. 100 531
Mitchell Energy & Development Corp. --
Class A 200 4,713
MMC Networks, Inc. 100 1,969
MMI Companies 200 813
Mobil Corp. 1,100 114,744
Modis Professional Services 200 2,138
Molex, Inc. 200 10,125
Momentum Business Applications 6 49
Mondavi (Robert) Corp.-- Class A 100 3,847
Monsanto Co. 900 37,969
Montana Power Co. 200 6,175
Morgan Stanley Dean Witter Discover & Co. 800 96,500
Morgan, (J.P.) & Co., Inc. 300 39,450
Morrison Knudsen Corp. 200 1,738
Morrison Management Specialist, Inc. 200 4,200
Motorola, Inc. 900 102,825
MP3.com 100 4,100
MRV Communications, Inc. 200 6,400
MSB Financial 200 1,800
Murphy Oil Corp. 100 5,650
Mustang.com, Inc. 300 3,488
Myers Industries, Inc. 10 150
Mylan Laboratories 200 4,713
Myriad Genetics, Inc. 200 6,625
Nabisco Group Holdings 600 6,938
Nabisco Holdings Corp.-- Class A 100 3,331
Nabors Industries, Inc.* 200 5,313
Nash Finch Co. 300 2,175
National Bancorp Alaska, Inc. 200 5,175
National City Bankshares, Inc. 126 3,654
National City Corp. 840 20,948
National Community Bancorp 200 5,050
National Data Corp. 100 3,275
National Health Investors, Inc. 100 1,575
National Instruments Corp. 100 3,000
National Semiconductor Corp.* 200 8,500
</TABLE>
15
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
National Service Industries, Inc. 100 $ 2,956
National Steel Corp.-- Class B 400 2,325
Navigant Consulting Co.* 100 1,063
Navigant International, Inc. 10 93
Navistar International Corp. 100 3,719
NBTY, Inc. 200 1,956
NCO Group, Inc.* 100 4,638
NCR Corp.* 200 6,563
Neiman-Marcus Group-- Class B 30 814
Nelson (Thomas), Inc. 100 888
Neon Systems 100 2,513
Netro Corp. 100 2,650
Network Appliance Corp. 100 11,769
Network Associates, Inc. 150 3,788
Netzero 200 4,250
New Century Energies, Inc. 200 6,288
New England Electric System 100 5,338
New Era of Networks 200 9,625
New Jersey Resources Corp. 100 4,025
New York Times Co.-- Class A 200 7,688
Newell Rubbermaid, Inc. 436 14,306
Newmont Mining Corp. 205 4,856
Newpark Resources, Inc. 100 600
Newsedge Corp. 100 1,000
Nextel Communications, Inc.-- Class A* 500 49,563
Nextlink Communications, Inc. 100 5,000
NFO Worldwide, Inc. 200 2,613
Niagara Bancorp, Inc. 400 4,150
Niagara Mohawk Holdings 300 4,500
Nicor 100 3,469
Nieman Marcus Group-- Class A 100 2,875
Nike, Inc. 400 18,400
Nisource 200 3,763
Nobility Homes 110 653
Noble Drilling Corp.* 200 5,575
Nordstrom, Inc. 300 8,344
Norfolk Southern Corp. 600 12,825
North American Vaccine, Inc. 200 1,100
North Fork BanCorp, Inc. 250 5,031
Northeast Utilities 200 4,225
Northern States Power Co. (Minn.) 300 6,131
Northern Trust Corp. 200 19,363
Northfield Laboratories, Inc. 200 2,400
Northland Cranberries, Inc.-- Class A 100 600
Northrop Grumman Corp. 100 5,619
Northwest Airlines Corp.-- Class A 100 2,344
Northwest Bancorp, Inc. 200 1,638
Northwest Natural Gas Co. 100 2,513
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Northwestern Corp. 100 $ 2,113
Norwood Financial Corp. 100 2,175
Nova Corp. (Georgia) 100 3,063
Novell, Inc.* 600 11,738
Novellus Systems, Inc.* 100 8,213
Nstar 241 10,025
NTL, Inc. 125 11,398
Nu Skin Asia Pacific, Inc. 100 1,119
Nucor Corp. 100 5,044
Oakley, Inc. 200 1,200
Occidental Petroleum Corp. 600 13,163
Ocean Energy, Inc. 400 3,050
Oceaneering International, Inc.* 100 1,300
Ocwen Financial Corp. 200 1,300
OEA, Inc.* 200 1,088
Office Depot, Inc. 600 6,675
Officemax* 300 1,838
Offshore Logistics, Inc.* 100 988
Old Kent Financial Corp. 115 4,675
Old National Bancorp 157 5,171
Old Republic International Corp. 200 2,500
Olsten Corp. 400 4,050
Omnicare, Inc. 200 2,713
Omnicom Group, Inc. 200 17,625
Omnipoint Corp. 100 8,100
Omnova Solutions 100 625
On Command Corp. 300 4,519
One Valley Bancorp, Inc. 100 3,394
Onix Systems, Inc. 100 588
Open Market, Inc. 400 14,725
Optical Cable Corp. 100 1,844
Oracle Systems Corp. 2,100 142,406
Orbital Sciences Corp.* 100 1,388
Oregon Steel Mills, Inc. 400 3,250
Orphan Medical, Inc. 100 619
Outback Steakhouse* 150 3,534
Outdoor Systems, Inc. 250 11,125
Overseas Shipholding Group, Inc. 100 1,463
Owens Corning 100 1,575
Owens-Illinois, Inc.* 300 7,181
Oxford Health Plan* 400 5,863
Oxigene, Inc. 300 4,875
P.P.& L. Resources, Inc. 300 6,919
Paccar, Inc. 100 4,113
Pacific Century Hawaii, Inc. 200 3,925
Pacificamerica Money Center, Inc. 200 13
Pacificare Health Systems, Inc.-- Class A 100 4,681
Pactiv Corp. 300 3,075
</TABLE>
16
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Paging Network, Inc.* 100 $ 72
PaineWebber Group, Inc. 200 7,838
Pairgain Technologies, Inc. 100 1,525
Pall Corp. 200 4,688
Palm Harbor Homes, Inc. 125 2,266
PAM Transportation Services, Inc. 100 1,056
Pameco Corp. 200 863
Panamsat Corp. 100 4,256
Papa John's International* 100 3,591
Parametric Technology Corp.* 300 6,806
Parexel International Corp. 100 1,200
Park Place Entertainment 400 5,150
Parker-Hannifin Corp. 200 9,413
Patrick Industries, Inc. 100 1,200
Patterson Dental Co.* 100 4,588
Paychex, Inc. 375 14,977
Payless Shoesource, Inc.* 100 4,581
PC Connection, Inc. 100 2,750
PE Corp.- Celera Genomics Group 50 3,063
PE Corp.- PE Biosystems 100 8,163
PECO Energy 300 9,881
Penford Corp. 200 3,025
Pennsylvania Real Estate Investment Trust 100 1,706
Penwest Pharmaceuticals Co. 150 2,025
People's Energy 100 3,675
Peoples Bank of Bridgeport* 100 2,119
Peoples Heritage Financial Group, Inc. 200 3,388
Peoplesoft, Inc.* 300 5,644
Pep Boys (Manny Moe & Jack) 100 969
Pepsi-Cola Bottling 200 3,500
Pepsico, Inc. 2,200 76,038
Perceptron, Inc. 300 1,294
Peregrine Systems, Inc. 100 7,000
Performance Technologies, Inc. 100 2,025
PerkinElmer, Inc. 100 4,113
Perot Systems 200 4,000
Perrigo* 100 841
PETsMART, Inc.* 100 431
Pfizer, Inc. 5,700 206,269
PG & E Corp. 600 13,425
Pharmaceutical Products Development
Service Co. 100 1,238
Phelps Dodge Corp. 136 7,075
Philip Morris Companies, Inc. 3,500 92,094
Phillips Petroleum Co. 400 19,125
Pier 1 Imports, Inc. 150 1,041
Pinnacle West Capital Corp. 200 6,638
Pitney Bowes, Inc. 400 19,175
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Pixar, Inc. 100 $ 4,200
Pizza Inn, Inc. 100 363
Plantronics, Inc. 100 6,300
Playboy Enterprises, Inc.-- Class B* 100 2,081
PMI Group 50 2,497
PNC Bank Corp. 400 22,300
Policy Management Systems 100 2,013
Polycom, Inc. 100 6,400
Popular, Inc. 200 5,750
Portal Software 100 11,706
Powertel, Inc.* 100 8,575
Post Properties, Inc. REIT 100 3,813
Potomac Electric Power Co. 200 4,763
Powerwave Technologies, Inc.* 100 5,981
PPG Industries, Inc. 300 17,569
Praxair, Inc. 200 8,925
Pre-Paid Legal Services, Inc. 100 2,388
Premier Parks, Inc. 100 2,500
Premiere Technologies, Inc. 200 1,525
Presidential Life Corp. 300 5,250
Preview Travel, Inc. 100 4,663
Price Communications Corp. 127 3,198
Priceline.com, Inc.* 200 12,400
Prime Retail, Inc. 400 2,550
Primedia, Inc. 300 3,619
Primus Telecommunications Group, Inc. 261 7,765
Procter & Gamble Co. 1,900 205,200
Prodigy Communications Corp. 100 2,706
Profit Recovery Group International, Inc. 100 3,705
Programmers Paradise, Inc. 500 3,313
Progressive Corp. of Ohio 100 8,056
Project Software & Development, Inc.* 100 8,925
Prologos Trust 300 5,456
Promus Hotel Corp. 100 3,206
Protection One, Inc. 300 525
Protective Life Corp. 100 3,200
Protein Design Labs, Inc.* 100 4,000
Provident Bancorp, Inc. 100 3,944
Provident Bankshares Corp. 110 2,179
Providian Financial Corp. 150 11,869
Proxicom 100 6,900
PS Group Holdings, Inc. 100 1,050
PSINet, Inc.* 100 5,000
PSS World Medical, Inc.* 200 2,006
PSW Technologies, Inc. 400 4,750
Public Service Enterprise Group 400 14,000
Public Storage, Inc. 286 6,524
Puerto Rican Cement Co., Inc. 100 3,500
</TABLE>
17
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Pulte Corp. 100 $ 2,006
PVF Capital 10 126
Quaker Oats Co. 200 13,050
Qualcomm, Inc. 200 72,463
Quantum Corp.* 300 4,725
Queens County Bancorp 100 2,900
Quiksilver, Inc. 150 2,269
Quintiles Transnational Corp.* 200 4,413
Quorum Health Group, Inc. 100 894
Qwest Communications International, Inc.* 1,032 35,282
R&B Falcon Corp. 200 2,475
R&G Financial Corp. 100 1,100
R.H.Donnelley 220 4,098
R.L.I. Corp. 200 6,800
R.R. Donnelley & Sons Co. 200 4,800
Radian Group, Inc. 106 5,213
Rainbow Technologies, Inc.* 100 1,694
Rainforest Cafe, Inc. 100 475
Ralston Purina Group 500 14,844
Rare Hospitality International, Inc. 200 4,250
Rational Software* 100 5,113
Rayovac Corp. 100 2,419
Raytheon Co.-- Class B 500 15,344
Razorfish 187 13,723
RCN Corp. 100 4,513
Reader's Digest Assn., Inc.-- Class A 100 2,900
RealNetworks, Inc.* 100 13,950
Red Hat 100 21,000
Redback Networks 100 13,994
Redwood Empire Bancorp 100 2,350
Reebok International Ltd. 200 1,800
Regions Financial Corp. 300 8,231
Reliance Group Holdings 200 800
Reliance Steel & Aluminum Co. 50 1,219
Reliant Energy 500 12,406
Reliastar Financial Corp. 200 8,700
Renal Care Group, Inc.* 200 4,100
Republic Group, Inc. 100 1,588
Republic New York Corp. 100 7,069
Republic Srvices 300 3,731
Resmed, Inc.* 100 4,006
Rexall Sundown, Inc.* 200 2,050
Reynolds & Reynolds 200 3,875
Reynolds Metals Co. 100 6,256
RF Micro Devices, Inc. 100 6,794
RF Monolithics, Inc. 100 578
Rhythms Netconnections 100 3,525
Risk Capital Holdings, Inc. 100 1,294
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Rite Aid Corp. 400 $ 3,025
RJ Reynolds Tobacco Hldgs 199 4,262
Roanoke Electric Steel Corp. 100 1,625
Robert Half International, Inc.* 200 5,600
Rock of Ages Corp. 200 1,200
Rockwell International Corp. 300 14,888
Rohm & Haas Co. 373 13,689
Rollins Truck Leasing Corp. 250 2,938
Roper Industries, Inc. 200 7,438
Ross Stores, Inc.* 100 1,919
Rouse Company 100 2,194
Royal Caribbean Cruises Ltd. 300 14,813
RPM, Inc. (Ohio) 200 2,350
RSA Security, Inc.* 100 3,725
Ruddick Corp. 100 1,763
Rural/Metro Corp. 300 1,706
Ryans Family Steak Houses, Inc.* 200 1,975
Ryder Systems, Inc. 100 2,256
S&K Famous Brands, Inc.* 100 744
Sabre Group Holdings, Inc. 100 4,550
Safeco 200 4,738
Safeguard Scientifics, Inc.* 100 11,113
Safety Components International, Inc. 100 141
Safety-Kleen Corp. 300 3,525
Safeway, Inc. 800 29,500
Saks, Inc. 282 4,935
Sandisk Corp.* 100 6,606
Sangstat Medical Corp. 100 2,356
Sanmina* 100 9,613
Santa Fe Snyder Corp. 100 800
Sante Fe International Corp. 200 4,563
Sara Lee Corp. 1,300 31,525
Sauer, Inc. 200 2,588
SBC Communications, Inc. 5,007 260,051
Scana Corp. 200 5,425
Schein (Henry), Inc. 100 1,281
Schering-Plough Corp. 2,200 112,475
Schlumberger Ltd. 800 48,050
School Speciality, Inc. 11 179
SCI Systems, Inc.* 100 6,788
Scientific-Atlanta, Inc. 100 5,831
Scios-Nova, Inc.* 100 381
SCM Microsystems, Inc.* 100 6,300
Scottish Power PLC 290 10,132
Scotts Company (The)* 100 4,019
SCPIE Holdings, Inc. 100 3,481
Scripps (E.W.) Co. 100 4,650
Seagate Technology, Inc.* 400 14,800
</TABLE>
18
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Sealed Air Corp.-- New 153 $ 7,191
Sears, Roebuck & Co. 600 20,513
Seitel, Inc. 100 675
Sempra Energy 450 8,325
Sensormatic Electronics Corp. 400 6,375
Sequa Corp.-- Class A 100 5,563
Serologicals Corp.* 100 713
Service Corp. International 400 3,025
The Servicemaster Co. 400 5,125
SFX Entertainment, Inc.-- Class A* 150 5,063
Shared Medical Systems Corp. 100 4,375
Shaw Industries, Inc. 200 3,138
Sherwin Williams Co. 300 6,431
Shuffle Master, Inc. 100 806
Shurgard Storage Centers-- Class A 100 2,231
SIEBL Systems, Inc. 200 14,025
Sigma Aldrich Corp. 200 5,725
Silicon Graphics, Inc.* 300 2,831
Simon Property Group, Inc. 300 6,994
Sky Financial Group, Inc. 100 2,319
SLI, Inc.* 100 1,294
SLM Holding Corp. 250 12,391
SMART Modular Technologies, Inc. 100 4,200
Smith (A.O.) Corp. 150 3,300
Smith International, Inc.* 100 3,988
Smithfield Foods, Inc.* 100 2,563
Smucker (J.M.) Co.-- Class A 100 2,013
Smurfit-Stone Container Corp. 297 5,699
Snap-On Tools Corp. 100 3,025
Snyder Communications, Inc. 300 4,031
Sodexho Marriott Services 125 1,984
Sola International, Inc. 200 2,850
Solectron Corp.* 400 32,950
Solutia, Inc.* 200 3,000
Sonic Automotive, Inc. 200 1,800
Sonoco Products 100 2,300
South Alabama Bancorp 100 1,400
Southdown, Inc.* 88 4,065
Southern Banc Company 100 963
Southern Co. 1,000 23,375
Southtrust Corp. 250 9,703
Southwest Airlines Co. 900 14,681
Southwest Bancorp of Texas, Inc. 200 3,775
Sovereign Bancorp, Inc. 260 2,308
Specialty Care Network, Inc. 100 297
Speedfam-Ipec 100 1,188
Speedway Motorsports, Inc.* 100 2,856
Spieker Properties, Inc. 100 3,500
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Spinnaker Industries, Inc. 100 $ 1,313
Springs Industries, Inc.-- Class A 100 4,000
Sprint Corp. (FON Group) 1,300 90,188
Sprint Corp. (PCS Group)* 650 59,638
SPX Corp. 68 5,066
SS&C Technologies, Inc. 600 3,225
St Joe Company 100 2,238
St. Jude Medical, Inc. 100 2,656
St. Paul Cos., Inc. 400 12,075
Stac Electrs 100 606
Stage Stores, Inc. 100 319
Stanley Works 100 3,113
Staples, Inc. 650 15,275
Starbucks Corp.* 300 7,969
Starmedia Network, Inc. 100 2,975
Starwood Hotels & Resorts Worldwide 291 6,493
State Street Corp. 200 14,688
Statefed Financial Corp. 100 1,025
Steel Dynamics, Inc. 300 4,125
Sterile Recoveries 100 738
STERIS Corp. 300 3,900
Sterling Commerce, Inc. 200 5,150
Stewart Enterprises, Inc. 200 1,019
Structural Dynamics Research Corp.* 300 3,197
Stryker Corp. 100 5,694
Styleclick.com, Inc. 200 2,900
Suiza Foods Corp. 100 3,594
Summit Bancorp 300 9,788
Sun Healthcare Group, Inc.* 300 14
Sun Microsystems, Inc.* 1,100 145,475
Sunbeam Oster Corp. 100 494
Sungard Data Systems, Inc. 100 2,225
Sunoco, Inc. 200 5,113
Sunrise Assisted Living, Inc. 166 2,179
Suntrust Banks, Inc. 492 34,379
Superior Industries International, Inc. 100 2,681
Superior Telecom, Inc. 125 2,039
SuperValu, Inc. 200 3,888
SVI Holdings 300 4,125
Sybron International Corp. 200 4,913
Sykes Enterprises, Inc. 100 3,994
Sylvan Learning Systems, Inc.* 100 1,319
Symantec Corp. 100 4,669
Symbol Technologies, Inc.* 150 7,153
Synopsys, Inc.* 100 7,238
Synovus Financial Corp. 450 9,000
Syntel, Inc. 150 1,875
Synthetic Industries, Inc. 100 3,263
</TABLE>
19
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Sysco Corp. 500 $ 19,031
T. Rowe Price 200 7,200
Taco Cabana, Inc. 100 869
Talk.com 500 8,438
Tandy Corp. 300 22,988
Taubman Centers, Inc. 200 2,175
TBC Corp.* 100 588
TCF Financial Corp. 100 2,831
Technisource 100 413
TECO Energy, Inc. 200 4,000
Tektronix, Inc. 100 3,400
Teledyne Technologies 42 378
Teleflex, Inc. 100 3,419
Teleglobe, Inc. 177 4,414
Telephone & Data Systems, Inc. 100 13,319
Tellabs, Inc.* 600 38,925
Telxon Corp. 100 1,575
Temple Inland, Inc. 100 5,725
Tenet Healthcare 500 11,156
Tenneco Automotive 60 473
Teppco Partners, L.P. 200 3,675
Teradyne, Inc. 200 8,713
Tetra Tech, Inc.* 250 2,844
Tetra Technologies, Inc.* 100 775
Texaco, Inc. 800 48,750
Texas Industries, Inc. 100 3,625
Texas Instruments, Inc. 1,150 110,494
Texas Utilities Co. 400 14,325
Textron, Inc. 200 14,213
Thermo Electron Corp.* 200 3,000
Thermo Fibertek, Inc. 100 706
Thermo Instrument Systems, Inc.* 200 2,363
Thermo Optek Corp. 100 1,006
Thermoquest Corp. 300 3,094
Thomas & Betts Corp. 100 4,100
Tibco Software, Inc. 100 9,700
Tidewater, Inc. 100 3,194
Tier Technologies, Inc. 200 1,431
Tiffany & Co. 100 7,750
Time Warner, Inc. 1,900 117,206
Times Mirror Co.-- Class A 100 6,456
Timken Company 200 3,825
Titan International, Inc. 100 663
Titanium Metals Corp. 100 544
TJX Companies, Inc. 500 13,094
TMP Worldwide, Inc. 100 9,481
Todd-AO Corp.-- Class A 100 1,775
Tokheim Corp.* 500 1,594
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Toll Brothers, Inc.* 200 $ 3,575
Tompkins County Trustco, Inc. 200 6,000
Too, Inc. 257 4,757
Tootsie Roll Industries, Inc. 100 3,194
Torchmark Corp. 300 9,525
Toro Co. 100 3,244
Tosco Corp. 300 8,119
Total Renal Care Holdings* 200 1,425
Total System Services, Inc. 450 7,313
Toys R Us, Inc. 400 7,000
Trammell Crow Co. 200 2,450
Transatlantic Holdings, Inc. 100 7,594
Transocean Offshore 200 5,638
Transportation Technologies 100 1,350
Travelers Property Casualty Corp. 100 3,331
Trendwest Resorts, Inc. 100 2,063
Triarc Companies, Inc.-- Class A 200 3,888
Tribune Co. 300 14,419
Trico Marine Services, Inc. 100 738
Tricon Global Restaaurants, Inc. 240 9,960
Trigon Healthcare, Inc. 100 2,944
Triquint Semiconductor, Inc.* 100 8,513
Trinity Industries, Inc. 100 2,925
True North Communications, Inc. 100 3,981
Trustmark Corp. 100 2,300
TRW, Inc. 200 10,438
TSI International Software 200 8,700
Tut Systems 100 3,963
TV Guide 100 6,347
Tyco International Ltd. 100 4,006
Tyson Foods, Inc. 400 6,950
U.S. BANCORP 1,100 37,606
U.S. BANCORP, Inc. 200 2,475
U.S. Can Corp.* 100 1,788
U.S. Foodservice 200 3,625
U.S. Industries, Inc. 200 2,775
U.S. Office Prods Co. 25 91
U.S. Trust Corp. 100 7,956
U.S. West, Inc. 708 43,940
U.S.A. Floral Products, Inc. 300 844
UAL Corp. 100 6,875
uBid 100 3,938
UCAR International, Inc. 100 2,238
Ultramar Diamond Shamrock Corp. 200 5,063
Unicom Corp. 400 12,775
Union Carbide Corp. Holding Co. 200 11,700
Union Pacific Corp. 400 18,825
Union Pacific Resources Group, Inc. 400 5,225
</TABLE>
20
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (continued) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Union Planters Corp. 200 $ 8,525
Unionbancal Corp. 200 8,813
Unisys Corp. 500 14,375
United Asset Management Co. 100 1,931
United Bankshares, Inc. 100 2,475
United Healthcare Corp. 300 15,581
United Mobile Homes, Inc. 100 838
United States Cellular* 100 11,888
United Stationers, Inc. 200 4,650
United Technologies Corp. 755 42,703
Unitrin, Inc. 100 3,731
Unity Bancorp 105 788
Universal Health Services, Inc. 100 3,294
Univision Communications, Inc.* 100 8,750
Unocal Corp. 400 13,275
Unova, Inc.-- W/I 300 3,938
UnumProvident Corp. 346 11,267
UroCor, Inc. 100 338
URS Corp.* 200 3,900
US Oncology, Inc.* 188 887
USA Networks, Inc. 200 8,000
USAir Group, Inc.* 100 2,794
Usana, Inc. 200 1,225
USEC 300 2,475
USG Corp. 100 4,963
USInternetworking, Inc. 100 5,481
UST Corp. 100 3,156
UST, Inc. 300 7,988
USWeb Corp. 100 4,144
USX Marathon Group 500 13,219
USX-U.S. Steel Group 100 2,531
Vail Resorts, Inc.* 100 1,719
Valuevision International, Inc.-- Class A* 100 4,500
Valassis Communications 50 1,969
Valero Energy New 200 4,150
Valhi, Inc. 200 2,163
Valley National Bancorp 236 5,930
Valspar Corp. 100 3,919
Vastar Resources, Inc. 100 5,600
Venator Group 100 688
Ventas, Inc. 400 1,975
Ventiv Health 33 262
Verio, Inc. 100 3,594
Verisign, Inc. 100 18,581
VERITAS Software Corp.* 300 27,469
Vertex Pharmaceuticals, Inc.* 100 2,656
Verticalnet Inc.* 100 8,763
VF Corp. 200 5,975
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Viacom, Inc.-- Class B 1,000 $ 49,750
Viad Corp. 100 2,631
Vicor Corp.* 100 3,238
Vishay Intertechnology, Inc.* 131 3,798
Visio Corp. 100 3,588
Vision Twenty-One, Inc. 500 2,156
VISX, Inc.* 100 7,756
Vitech America, Inc. 100 761
Vitesse Semiconductor, Inc. 200 9,013
Vitria Technology Inc. 100 9,981
Vlasic Foods International 40 310
Voicestream Wireless Corp. 100 9,225
Vornado Operating, Inc. 107 622
Vornado Realty Trust 143 4,513
Vulcan Materials Co. 100 4,025
W.R. Grace & Co.-- W/I 200 2,725
Wabash National 200 2,938
Wachovia Corp. 300 23,231
Wal-Mart Stores, Inc. 6,500 374,563
Walgreen Co. 1,500 43,688
Walker Interactive Systems, Inc. 100 581
Walt Disney Co. 3,000 83,625
Walter Industries, Inc. 200 2,125
Warner Lambert Co. 1,289 115,607
Washington Mutual, Inc. 886 25,694
Waste Management, Inc. 889 14,446
Water Pik Technologies 15 111
Waters Corp. 100 4,900
Watkins-Johnson Co. 100 3,881
Watson Pharmaceuticals* 200 7,438
Wausau-Mosinee Paper Corp. 100 1,325
Weatherford International 200 6,988
Webb Interactive Services, Inc. 300 4,688
Webhire 500 4,188
Weis Markets, Inc. 100 4,106
Wellpoint Health Networks, Inc.* 100 5,756
Wells Fargo Company 2,400 111,600
Wendys International, Inc. 200 4,413
West Marine, Inc. 100 856
West Teleservices 200 3,450
Westamerica BanCorp. 100 3,144
Western Digital Corp.* 200 788
Western Wireless Corp. 100 5,856
Westfield America, Inc. 200 2,700
Westinghouse Air Brake Co. 199 3,607
WestPoint Stevens, Inc.* 100 2,100
Westvaco Corp. 200 6,038
Westwood One, Inc.* 50 2,863
</TABLE>
21
<PAGE>
ISI Strategy Fund, Inc.
Statement of Net Assets (concluded) November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
- ------------------------------------------------------------------------------------------
<S><C>
Common Stock--continued
Weyerhaeuser Co. 300 $ 18,375
Whirlpool Corp. 100 6,100
Whitman Corporation 200 2,775
Whole Foods Market, Inc. 100 3,931
Wicor, Inc. 200 6,000
Wiley (John) & Sons, Inc.-- Class A 200 3,025
Willamette Industries, Inc. 200 8,275
Williams Clayton Energy, Inc. 100 1,488
Williams Companies, Inc. 600 20,250
Williams-Sonoma, Inc.* 100 5,450
Wilmington Trust Corp. 100 5,038
Windmere Corp.* 300 4,294
Winn Dixie Stores, Inc. 300 7,856
WinStar Communications, Inc.* 100 5,075
Wisconsin Energy Corp. 200 3,975
Wm. Wrigley, Jr. Co. 200 16,638
Wolverine WorldWide, Inc. 200 2,188
Woodward Governor Co. 100 2,700
Workflow Management, Inc. 13 307
World Access, Inc. 400 6,075
Worthington Industries, Inc. 100 1,600
Wyndham Hotels 321 903
XCL Ltd. 100 44
Xerox Corp. 1,000 27,063
Xilinx, Inc.* 200 17,900
Yahoo!, Inc.* 367 78,224
Yardville National Bancorp 200 2,400
York International Corp. 100 2,231
Young & Rubicam 100 5,219
Zenith Electronics Corp.* 100 2
Ziff-Davis, Inc. 200 3,688
Zions Bancorp. 100 6,456
Zonagen, Inc. 200 1,088
-----------
Total Common Stock
(Cost $17,668,485) $20,940,768
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Value Market
(000) Value
- -------------------------------------------------------------------------------------------
<S><C>
U.S. Treasury Bonds--31.3%
U.S. Treasury Bond
8.750%, 5/15/17 $2,000 $ 2,431,562
12.750%, 11/15/10 2,100 2,745,750
U.S. Treasury STRIP
8/15/15 8,000 2,813,624
U.S. Treasury Bill
5.280%, 1/13/00 5,000 4,968,228
-----------
Total U.S. Treasury Bonds
(Cost $12,870,051) 12,959,164
-----------
Repurchase Agreements--18.0%
Goldman Sachs & Co., 5.55% Dated
11/30/99, to be repurchased on
12/1/99, collateralized by U.S.
Treasury Bonds with a market
value of $7,447,148. (Cost 7,446,000) 7,446 7,446,000
-----------
Total Investments--100.0%
(Cost $37,984,536)** 41,345,932
-----------
Other Assets in Excess of Liabilities--0.0% (4,930,440)
-----------
Net Assets--100.0% $36,415,492
===========
Net Asset Value and Redemption
Price Per Share
($36,415,492 / 2,980,936) $12.22
======
Maximum Offering Price Per Share
($12.22 / 0.9555) $12.79
======
</TABLE>
- ----------
** Non-income producing security.
** Aggregate cost for federal tax purposes was $38,000,272.
See Notes to Financial Statements.
22
<PAGE>
ISI Strategy Fund, Inc.
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
For the Six
Months Ended
November 30, 1999
- ----------------------------------------------------------------------------------
<S><C>
INVESTMENT INCOME:
Dividends $ 179,846
Interest 376,731
----------
Total income 556,577
----------
EXPENSES:
Investment advisory fee 72,218
Distribution fee 45,136
Legal fee 20,442
Registration fee 18,636
Administration fee 17,565
Accounting fee 17,352
Printing and postage 16,492
Audit fee 15,304
Transfer agent fee 5,354
Custodian fee 4,000
Miscellaneous 9,152
----------
Total expenses 241,651
Less: Fees waived (61,538)
----------
Net expenses 180,113
----------
Net investment income 376,464
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from security transactions 756,089
Change in unrealized appreciation/depreciation
of investments 125,294
----------
Net gain on investments 881,383
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $1,257,847
==========
</TABLE>
- ----------
See Notes to Financial Statements.
23
<PAGE>
ISI Strategy Fund, Inc.
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
For the
Six Months For the
Ended Year Ended
November 30, 1999 May 31, 1999
- --------------------------------------------------------------------------------------------------------------
<S><C>
INCREASE IN NET ASSETS:
Operations:
Net investment income $ 376,464 $ 478,431
Net realized gain from security
transactions 756,089 173,372
Change in unrealized appreciation/
depreciation of investments 125,294 2,351,825
----------- -----------
Net increase in net assets
resulting from operations 1,257,847 3,003,628
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (330,858) (440,554)
Net realized long-term and mid-term gains -- (369,934)
----------- -----------
Total Distributions (330,858) (810,488)
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 1,379,964 17,040,574
Value of shares issued in reinvestment
of dividends 288,550 713,228
Cost of shares repurchased (1,914,246) (2,432,446)
----------- -----------
Increase (decrease) in net assets derived
from capital share transactions (245,732) 15,321,356
----------- -----------
Total increase in net assets 681,257 17,514,496
NET ASSETS:
Beginning of period 35,734,235 18,219,739
----------- -----------
End of period (including undistributed
net investment income of $150,335
and $99,187, respectively) $36,415,492 $35,734,235
=========== ===========
</TABLE>
- ----------
See Notes to Financial Statements.
24
<PAGE>
ISI Strategy Fund, Inc.
Financial Highlights (For a share outstanding throughout the period)
<TABLE>
<CAPTION>
For the For the Period
Six Months For the September 16, 1997(2)
Ended Year Ended through
November 30, 1999(1) May 31, 1999 May 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
<S><C>
Per Share Operating Performance:
Net asset value at beginning of period $ 11.91 $ 11.00 $ 10.00
-------- --------- --------
Income from Investment Operations:
Net investment income 0.13 0.21 0.13
Net realized and unrealized gain on investments 0.29 1.10 0.96
-------- --------- --------
Total from Investment Operations 0.42 1.31 1.09
-------- --------- --------
Less Distributions:
Distributions from net investment income (0.11) (0.21) (0.09)
Distributions from short-term and long-term gains (0.19) --
-------- --------- --------
Total distributions (0.11) (0.40) (0.09)
-------- --------- --------
Net asset value at end of period $ 12.22 $ 11.91 $ 11.00
======== ========= ========
Total Return 3.55% 12.15% 10.94%
Ratios to Average Daily Net Assets:
Expenses(3) 1.00%(5) 1.00% 1.00%(5)
Net investment income(4) 2.09%(5) 1.81% 2.03%(5)
Supplemental Data:
Net assets at end of period (000) $ 36,415 $ 35,734 $ 18,220
Portfolio turnover rate 33.41% 31.93% 20.08%
</TABLE>
- ----------
(1) Unaudited.
(2) Commencement of operations.
(3) Ratio of expenses to average net assets prior to fee waiver and expense
reimbursement was 1.34%, 1.68% and 2.25% for the period ended November 30,
1999, the year ended May 31,1999 and the period ended May 31, 1998,
respectively.
(4) Ratio of net investment income to average net assets prior to fee waiver
and expense reimbursement was 1.75%, 1.12% and 0.78% for the period ended
November 30, 1999, the year ended May 31, 1999 and the period ended May 31,
1998, respectively.
(5) Annualized.
See Notes to Financial Statements.
25
<PAGE>
Notes to Financial Statements
A. Significant Accounting Policies -- ISI Strategy Fund, Inc. (the "Fund"),
which was organized as a Maryland Corporation on June 12, 1997 and began
operations September 16, 1997, is registered under the Investment Company
Act of 1940 as a diversified, open-end investment management company. It
seeks to maximize total return through a combination of long-term growth of
capital and current income by actively apportioning the Funds' assets
between diversified investments in U.S. equity securities and U.S. Treasury
Securities.
The Fund consists of one share class, ISI Shares, which has a 4.45% maximum
sales charge and a 0.25% distribution fee.
When preparing the Fund's financial statements, management makes estimates
and assumptions to comply with generally accepted accounting principles.
These estimates affect 1) the assets and liabilities that we report at the
date of the financial statements; 2) the contingent assets and liabilities
that we disclose at the date of the financial statements, and 3) the
revenues and expenses that we report for the period. Our estimates could be
different from the actual results. The Fund's significant accounting
policies are:
Security Valuation -- The Fund values a portfolio security that is primarily
traded on a national exchange by using the last sales price reported for the
day. If there are no sales or the security is not traded on an exchange, the
Fund values the security at the average of the last bid and asked prices in
the over-the-counter market. When a market quotation is not readily
available, the Investment Advisor under the direction of the Board of
Directors determines a fair value using the policies and procedures that the
Board of Directors establishes and monitors. The Fund values short-term
obligations with maturities of 60 days or less at amortized cost.
Repurchase Agreements -- The Fund may enter into tri-party repurchase
agreements with broker-dealers and domestic banks. A repurchase agreement is
a short-term investment in which the Fund buys a debt security that the
broker agrees to repurchase at a set time and price. The third party, which
is the broker's custodial bank, holds the collateral in a separate account
until the repurchase agreement matures. The agreement ensures that the
collateral's market value, including any accrued interest, is sufficient if
the broker defaults. The Fund's access to the collateral may be delayed or
limited if the broker defaults and the value of the collateral declines or
if the broker enters into an insolvency proceeding.
Federal Income Taxes -- The Fund determines its distributions according to
income tax regulations, which may be different from generally accepted
accounting principles. As a result, the Fund occasionally makes
reclassifications within its capital accounts to reflect income and gains
that are available for distribution under income tax regulations.
The Fund is organized as a regulated investment company. As long as it
maintains this status and distributes to its shareholders substantially all
of its taxable net investment income and net realized capital gains, it will
be exempt from most, if not all, federal income and excise tax.
As a result, the Fund has made no provision for federal income taxes.
Security Transactions, Investment Income, Distributions and Other -- The
Fund uses the trade date to account for security transactions and the
specific identification method for financial reporting and income tax
purposes to determine the cost of investments sold or redeemed. Interest
income is recorded on an accrual basis
26
<PAGE>
Notes to Financial Statements (continued)
and includes the pro rata scientific method for amortization of premiums and
accretion of discounts when appropriate. Dividend income and distributions
to shareholders are recorded on the ex-dividend date. The Fund has deferred
the costs incurred by its organization and the initial public offering of
shares. These costs are being amortized on the straight-line method over a
five-year period, except for registration fees which are amortized over a
three-year period, which began when the Fund commenced investment
activities.
B. Investment Advisory Fees, Transactions with Affiliates and Other Fees --
International Strategy and Investment Inc. ("ISI") is the Fund's investment
advisor. As compensation for its advisory services, the Fund pays ISI an
annual fee based on the Fund's average daily net assets. This fee is
calculated daily and paid monthly at the annual rate of 0.40%. ISI has
agreed to waive a portion of its fee and reimburse expenses so that the
Fund's total operating expenses for any fiscal year do not exceed 1.00% of
the Fund's average daily net assets. For the six months ended November 30,
1999, ISI waived fees in the amount of $61,538.
Wilshire Associates Incorporated ("Wilshire") is the Fund's sub-advisor.
As compensation for its sub-advisory services, ISI pays Wilshire an annual
fee based on the Fund's average daily net assets. This fee is calculated
daily and paid monthly at the annual rate of 0.16%.
The Fund is a member of the ISI family of Funds ("ISIFunds"). Investment
Company Capital Corp ("ICC") provides administrative services to the ISI
Funds for which the ISI Funds pay ICC a fee that is based on their combined
net assets and is calculated daily and paid monthly at the following annual
rates: 0.20% of the first $75 million, 0.15% of the next $75 million, 0.10%
of the next $75 million, 0.05% of the next $275 million, and 0.03% of the
amount over $500 million. Prior to June 1, 1999 ICC charged the Fund
separately at the annual rate of .12% of the Fund's net assets. ICC agreed
to waive its fee for the first year of the Fund's operations. For the six
months ended November 30, 1999, ICC's fee was $17,565 of which $3,235 was
payable at the end of the period.
Certain officers and directors of the Fund are also officers or directors of
ISI, Wilshire or ICC.
ICC also provides accounting services, to the Fund for which the Fund pays
ICC an annual fee that is calculated daily and paid monthly based on the
Fund's average daily net assets. For the six months ended November 30, 1999,
ICC's fee was $17,352 of which $2,873 was payable at the end of the period.
ICC also provides transfer agent services to the Fund for which the Fund
pays ICC a per account fee that is calculated and paid monthly. For the six
months ended November 30, 1999, ICC's fee was $5,354, of which $4,800 was
payable at the end of the period.
ISI Group, Inc., an affiliate of ISI, provides distribution services to the
Fund for which the Fund pays ISI Group Inc., an annual fee that is
calculated daily and paid monthly at an annual rate equal to 0.25% of the
Fund's average daily net assets. For the six months ended November 30, 1999,
ISI Group's fee was $45,136, of which $7,520 was payable at the end of the
period.
The Fund's complex offers a retirement plan for eligible Directors. The
actuarially computed pension expense allocated to the Fund for the six
months ended November 30, 1999 was $534 and the accrued liability was
$2,253.
27
<PAGE>
Notes to Financial Statements (concluded)
C. Capital Share Transactions-- The Fund is authorized to issue up to 25
million shares of $.001 par value capital stock (20 million ISI Class, 5
million Wilshire Institutional Class). Transactions in shares of the Fund
were as follows:
For the
For the Period
Six Months Sept. 16, 1997(1)
Ended through
Nov. 30, 1999(2) May 31, 1998
---------------- -----------------
Shares sold 115,354 1,744,374
Shares issued to share-
holders on reinvest-
ment of dividends 24,070 9,391
Shares redeemed (159,780) (96,939)
------------- -----------
Net increase/decrease
in shares outstanding (20,356) 1,656,826
============= ===========
Proceeds from sales
of shares $ 1,379,964 $18,021,106
Value of reinvested
dividends 288,550 99,815
Cost of shares
redeemed (1,914,246) (1,044,831)
------------- -----------
Net increase/decrease
from capital share
transactions $ (245,732) $17,076,090
============= ===========
- ----------
1 Commencement of operations.
2 Unaudited.
D. Investment Transactions-- Excluding short-term obligations, purchases of
investment securities aggregated $8,940,661 and sales of investment
securities aggregated $14,191,468 for the six months ended November 30,
1999.
On November 30, 1999, aggregate gross unrealized appreciation for all
securities in which there is an excess of value over tax cost was $5,089,443
and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value was $1,743,783.
E. Net Assets -- On November 30, 1999, net assets consisted of:
Paid-in capital $32,151,714
Accumulated net realized gain
from security transactions 752,047
Unrealized appreciation
of investments 3,361,396
Undistributed net investment
income 150,335
-----------
$36,415,492
===========
This report is prepared for the general information of shareholders.
It is authorized for distribution to prospective investors only when preceded or
accompanied by an effective prospectus.
For more complete information regarding any of the ISI Funds,
including charges and expenses, obtain a prospectus from your investment
representative or directly from the Fund at 1-800-955-7175. Read it carefully
before you invest.
28
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