Message from the Chairman
Against the backdrop of a Federal Reserve Board that consistently
has been pushing up interest rates in an effort to slow down the
economy and insure that inflation doesn't rear its ugly head, the
equity markets had a seesaw first half performance. The Dow Jones
Industrial Average dropped almost 2,000 points over a sixty-day
period from its high of 11,700 in the middle of January, and then
was able to recover some lost ground. More aggressive investors
painfully watched the NASDAQ Index, after hitting an all-time
high of 5,048 in early March, free-fall over the next two months
all the way down to 3,164, a stunning decline of over 37%. Since
hitting that level, however, the NASDAQ, which is full of
technology and telecommunications issues, was able to climb back
over the 4,000 level.
For the first six months ended June 30, the Dow Jones Industrial
Average had a negative total rate of return of -8.45%. The
Standard & Poor's 500 Index, while performing better than the
Dow, was still slightly negative at -0.42%. The NASDAQ also
finished in negative territory, at -2.46%. International stocks,
as tracked by the Morgan Stanley EAFE (Europe, Australia and Far
East) Index, similarly had a difficult first half, finishing down
-4.63%. This was one of those periods where there was no place
for equity investors to hide. However, we have to remember that
we are coming off an extended period of outstanding equity
returns, especially for large capitalization growth stock
investors, so we should keep our expectations going forward as
realistic as possible.
The disparity in performance between growth stocks and value
stocks continues to surprise many market observers. When you
analyze the 1000 largest stocks in the Frank Russell universe of
3000 stocks, you see that for the first six months of 2000, large
cap growth stocks had a positive return of 4.23%, while the large
cap value stocks had a negative return of -4.23%. For the three-
year period ending June 30, 2000, large cap value stocks, which
tend to be companies selling at relatively low price-to-earnings
and price-to-book ratios, have underperformed large cap growth
stocks by over 17% on an annualized basis - an enormous gap. In
the small cap arena, as tracked by the Russell 2000 universe,
small cap value stocks finally showed superior performance over
small cap growth stocks for the first six months, but still have
a long way to go before correcting their huge relative
underperformance of the last several years.
Many investors have "thrown in the towel" as far as value stocks
go, preferring to cast their lot with the higher growth and
certainly more exciting high growth, high P/E stocks in the
technology, biotechnology and telecommunications industries. But
valuations of many stocks in these high growth industries often
are at breathtaking, and unsustainable, levels with the potential
for severe downward price adjustments. It reinforces the theme of
not putting too many of your investment eggs in one basket, and
always being keenly aware of the overall level of risk in your
portfolio, making sure it's one with which you are totally comfortable.
We hope that you will read the portfolio summaries from the
various managers in this semiannual report, and as always,
we welcome your comments and questions.
Sincerely,
/s/Robert N. Sawyer
Robert N. Sawyer
Chairman
Performance data contained in this report is for past periods
only. Past performance is not predictive of future performance.
Investment return and share value will fluctuate, and redemption
value may be more or less than original cost.
Large Cap Value
A distinct turnaround from growth to value began around the
middle of March 2000. That turnaround indeed continued into
April, when many value managers happily noted the one year
anniversary of value stocks' remarkable and historic April 1999
recovery and hoped that the same shift in market sentiment from
growth to value might be more sustainable this year.
On an absolute and relative basis, the Large Cap Value Portfolio
performed exceptionally well in March. Although the major
benchmarks reported negative performance in April, the Portfolio
eked out a positive return and (1) expanded its relative
performance versus both growth and value benchmarks, and (2)
continued to narrow the gap that had developed early in the first
quarter between it and those benchmarks.
It was clear, at least on a short-term basis, that large
capitalization growth stocks had unarguably fallen from favor in
the March to April time frame. This disparity continued into May,
when value benchmarks produced positive returns and growth
benchmarks continued to slip with another month of negative
returns. More importantly, the Large Cap Value Portfolio, for the
third consecutive month, produced superior returns versus all
benchmarks. By the end of May, the Portfolio had regained most of
the ground it had lost in the overheated growth market that
characterized the first two months of the new millennium.
David L. Babson & Co. Inc.
Top Holdings
% of Total
Harcourt General, Inc. 4.0%
Aetna, Inc. 3.2%
BP Amoco 3.0%
Royal Dutch Petroleum Co. 3.0%
Boeing Co. 2.9%
Total 16.1%
As of June 30, 2000, schedule of investments. Subject to change.
Total Return as of June 30, 2000
Since Commencement
Six Months One year November 13, 1997
Large Cap Value -5.53% -16.01% -1.19%
Schedule of Investments
June 30, 2000 (unaudited)
Large Cap Value
SHARES COMPANY MARKET VALUE
COMMON STOCKS - 94.87%
BASIC MATERIALS - 11.41%
1,560 duPont (E.I.) deNemours & Co. $ 68,250
320 Martin Marietta Materials, Inc. 12,940
1,840 Millennium Chemicals, Inc. 31,280
1,560 Potlatch Corp. 51,675
3,950 USX-U.S. Steel Group 73,322
1,190 Weyerhaeuser Co. 51,170
1,840 Willamette Industries, Inc. 50,140
338,777
CAPITAL GOODS - 10.06%
2,070 Boeing Co. 86,552
1,020 Hanson PLC 35,955
2,310 Lockheed Martin Corp. 57,317
3,210 Raytheon Co. Cl. B 61,793
5,790 Wallace Computer Services, Inc. 57,176
298,793
CONSUMER CYCLICAL - 10.39%
2,590 Dana Corp. 54,876
2,180 Harcourt General, Inc. 118,538
3,220 The Limited, Inc. 69,633
2,010 Sears, Roebuck & Co. 65,576
308,623
CONSUMER STAPLES - 8.29%
2,600 Albertson's, Inc. 86,450
2,282 Diageo PLC 81,154
3,400 Fortune Brands, Inc. 78,412
246,016
ENERGY - 8.30%
1,558 BP Amoco 88,124
1,430 Royal Dutch Petroleum Co. 88,034
2,800 USX-Marathon Group 70,175
246,333
FINANCIAL - 22.73%
3,390 Allstate Corp. 75,428
1,560 American Express Co. 81,315
31 Berkshire Hathaway, Inc. Cl. B* 54,560
1,410 Chase Manhattan Corp. 64,948
1,335 Citigroup, Inc. 80,434
4,500 National City Corp. 76,781
2,200 SLM Holding Corp. 82,362
450 Student Loan Corp. 18,900
3,480 U.S. Bancorp 66,990
1,890 Wells Fargo & Co. 73,237
674,955
HEALTHCARE - 8.72%
1,490 Aetna, Inc. 95,639
2,900 Tenet Healthcare Corp. 78,300
990 United Healthcare Corp. 84,892
258,831
TECHNOLOGY - 8.05%
1,520 Apple Computer, Inc. 79,610
730 International Business Machines Corp. 79,981
3,830 Xerox Corp. 79,473
239,064
TRANSPORTATION & SERVICES - 5.02%
1,820 CSX Corp. 38,561
2,974 KLM Royal Dutch Airlines 78,997
2,120 Norfolk Souther Corp. 31,535
149,093
UTILITIES - 1.90%
1,000 Duke Energy Corp. 56,375
TOTAL COMMON STOCKS 2,816,860
(Cost $2,962,627)
FACE
AMOUNT DESCRIPTION MARKET VALUE
REPURCHASE AGREEMENT - 6.06%
$ 180,000 UMB Bank, n.a.,
5.90% due 7/03/00
(Collateralized by U.S.
Treasury Notes, 6.625%
due 6/30/01 with a
value of $184,173) 180,000
(Cost $180,000)
TOTAL INVESTMENTS - 100.93% 2,996,860
(Cost $3,142,627)
Other assets less liabilities - (0.93%) (27,505)
TOTAL NET ASSETS - 100.00% $ 2,969,355
The identified cost of investments owned at June 30, 2000, was the same for
federal income tax and book purposes.
Net unrealized depreciation for federal income tax purposes was $145,767,
which is comprised of unrealized appreciation of $405,197 and unrealized
depreciation of $550,964.
*Non-income producing security
See accompanying Notes to Financial Statements.
Large Cap Growth
Domestic equity markets experienced heightened levels of
volatility in the year's second quarter, but continued to reward
rapidly growing, multi-national large capitalization companies.
Despite the market's dramatic swings, relative moves in the
Portfolio were subdued due to low turnover and a relatively
concentrated number of names (34 at quarter-end).
In spite of the volatility and short-term weakness in the
technology sector, we remain confident of the potential for
tremendous long-term earnings growth. We continue to find
attractive investment candidates. Recognizing the oversold nature
of the market midway through the second quarter, we added
selected names to the Portfolio. These included Immunex, Nortel
Networks and Safeway.
Portfolio structure continues to stress adequate diversification,
represented in the second quarter by strong performance
contributions from health care product developer Johnson &
Johnson (45.0%), optical fiber producer Corning (39.1%),
electrical utility provider AES (15.9%), and diversified media
company Clear Channel Communications (8.6%).
Other standout performers during the second quarter included
biopharmaceutical firm Immunex (49.9%), telecommunications
equipment manufacturer Nortel (32.2%) and EMC (22.1%), an
enterprise storage provider.
Stein Roe & Farnham Incorporated
Top Holdings
% of Total
Citigroup, Inc. 4.6%
Corning, Inc. 4.0%
Pfizer, Inc. 4.0%
Emc Corp. 3.9%
Johnson & Johnson 3.8%
Total 20.3%
As of June 30, 2000, schedule of investments. Subject to change.
Total Return as of June 30, 2000
Since Commencement
Six Months One year November 13, 1997
Large Cap Growth 12.20% 34.06% 30.75%
Schedule of Investments
June 30, 2000 (unaudited)
Large Cap Growth
SHARES COMPANY MARKET VALUE
COMMON STOCKS - 98.70%
BASIC MATERIALS - 2.24%
3,000 Immunex Corp. $ 148,313
CAPITAL GOODS - 6.99%
2,500 Applied Materials, Inc. 226,563
5,000 Tyco International Ltd. 236,875
463,438
CONSUMER CYCLICAL - 12.28%
1,000 Corning, Inc. 269,875
4,500 General Electric Co. 238,500
3,000 Home Depot, Inc. 149,813
2,800 Kohl's Corp. 155,750
813,938
CONSUMER STAPLES - 3.40%
5,000 Safeway, Inc. 225,625
ENERGY - 2.75%
4,000 AES Corp. 182,500
FINANCIAL - 4.55%
5,000 Citigroup, Inc. 301,250
HEALTHCARE - 14.14%
10,000 Boston Scientific Corp. 219,375
2,500 Johnson & Johnson 254,687
4,000 Medtronic, Inc. 199,250
5,500 Pfizer, Inc. 264,000
937,312
MEDIA & ENTERTAINMENT - 8.98%
5,000 Global Crossings Ltd. 131,562
7,000 AT&T Corp. - Liberty Media Corp. 169,750
1,600 JDS Uniphase Corp. 191,800
1,500 Nortel Networks Corp. 102,375
595,487
SHARES OR
FACE AMOUNT COMPANY MARKET VALUE
TECHNOLOGY - 39.96%
3,000 American Tower Corp. 125,063
4,000 Atmel Corp. 147,500
4,000 Cisco Systems, Inc. 254,250
3,000 Clear Channel Communications, Inc. 225,000
1,500 Comcast Corp. Cl. A (non-voting) 60,750
3,400 EMC Corp. 261,588
7,000 L.M. Ericsson 140,000
3,000 LSI Logic Corp. 162,375
2,500 Microsoft Corp. 200,000
4,200 Motorola, Inc. 122,062
2,400 Nokia Corp. 119,850
3,000 Novellus Systems 169,688
2,400 Oracle Corp. 201,750
3,000 Texas Instruments, Inc. 206,062
5,500 Worldcom, Inc. 252,312
2,648,250
UTILITIES - 3.41%
3,500 Enron Corp. 225,750
TOTAL COMMON STOCKS 6,541,862
(Cost $4,475,637)
TOTAL INVESTMENTS - 98.70% 6,541,862
(Cost $4,475,637)
Other assets less liabilities - 1.30% 86,179
TOTAL NET ASSETS - 100.00% $ 6,628,042
The identified cost of investments owned at June 30, 2000, was the same for
federal income tax and book purposes.
Net unrealized appreciation for federal income tax purposes was $2,066,225,
which is comprised of unrealized appreciation of $2,134,852 and unrealized
depreciation of $68,627.
See accompanying Notes to Financial Statements.
Mid Cap Equity
The first half of 2000 was a good time to be a mid cap equity
investor. The Standard & Poor's Mid Cap Index* was up nearly 9%.
The Investors Mark Mid Cap Equity Portfolio surpassed this
benchmark with a total return of 9.7%. This strong showing was
accomplished despite other segments of the stock market having
struggled. The S&P 500 Large Cap Index* was down -0.4%, the
Morgan Stanley Capital International EAFE Index* was down -4.0%,
and the Russell 2000 Small Cap Index* was up only 3.0%.
Within the mid cap market, the period was volatile. Technology
stocks again were dominating the market early in the year. In
March, this sentiment shifted remarkably. Defensive sectors like
health care, food services and utilities took over market
leadership. This volatility is perhaps best illustrated by the
technology-heavy NASDAQ's performance: up 30% in the first part
of the year, but finishing in negative territory for the period down -2.5%.
Standish, Ayer & Wood, Inc.
* Indices are unmanaged and not available for direct investment.
Top Holdings
% of Total
Standard & Poor's 400 Mid-Cap
Depository Receipts 4.2%
Standard & Poor's 500 Depository Receipts 4.1%
Coastal Corp. 2.9%
Genzyme Corp. 2.3%
Valassis Communications, Inc. 2.2%
Total 15.7%
As of June 30, 2000, schedule of investments. Subject to change.
Total Return as of June 30, 2000
Since Commencement
Six Months One year November 13, 1997
Mid Cap Equity 9.74% 12.41% 9.25%
Schedule of Investments
June 30, 2000 (unaudited)
MID CAP EQUITY
SHARES COMPANY MARKET VALUE
COMMON STOCKS - 96.02%
BASIC MATERIALS - 4.30%
1,100 Cytec Industries, Inc.* $ 27,156
300 Nucor Corp. 9,956
1,200 OM Group, Inc. 52,800
1,200 Westvaco Corp. 29,775
1,500 Worthington Industries, Inc. 15,750
135,437
CAPITAL GOODS - 6.17%
400 Advanced Energy Industries* 23,575
700 American Standard Cos.* 28,700
400 Danaher Corp. 19,775
500 Dycom Industries, Inc. 23,000
700 Ingersoll-Rand Co. 28,175
300 Lafarge Corp. 6,300
800 Parker Hannifin Corp. 27,400
500 Quaker Oats Co. 37,563
194,488
CONSUMER CYCLICAL - 20.67%
1,200 ACNielsen Corp.* 26,400
500 Avery Dennison Corp. 33,562
1,000 Brinker International, Inc.* 29,250
400 Federated Department Stores, Inc.* 13,500
1,503 Flowers Industries, Inc. 29,966
1,600 Furniture Brands International* 24,200
300 Gannett, Inc. 17,944
500 Jones Apparel Group, Inc.* 11,750
2,000 Linens `n Things, Inc.* 54,250
1,200 Mohawk Industries, Inc.* 26,100
500 Omnicom Group 44,531
450 Paychex, Inc. 18,900
1,000 Readers Digest Assn. Cl. A 39,750
1,100 Ross Stores, Inc. 18,769
1,100 Station Casinos 27,500
1,000 Supervalu, Inc. 19,063
2,100 TJX Companies, Inc. 39,375
600 True North Communications 26,400
600 Talbots, Inc. 32,962
1,800 Valassis Communications, Inc. 68,625
500 Whirlpool Corp. 23,313
2 Xerox Corp. 42
700 Zale Corp.* 25,550
651,702
CONSUMER STAPLES - 8.40%
700 CVS Corp. 28,000
700 Coors Adolph Cl. B 42,350
900 Dentsply International, Inc. 27,731
800 Elan Corp.* 38,750
500 Hain Food Group* 18,344
1,700 Kaufman & Broad Home Corp. 33,681
700 Knight-Ridder, Inc. 37,231
1,000 McCormick & Co. 32,500
1,000 NBTY, Inc.* 6,375
264,962
ENERGY - 10.21%
900 American Power Conversion Corp.* 36,731
6 BP Amoco PLC 339
1,500 Coastal Corp. 91,313
900 Constellation Energy Corp. 29,306
414 Dynergy, Inc. 28,281
1,200 El Paso Energy Corp. 61,125
2,400 Energy East Corp. 45,750
600 Equitable Resources, Inc. 28,950
321,795
FINANCIAL - 19.98%
400 AMBAC Financial Group 21,925
600 CSG Sytems International, Inc.* 33,638
4 Chase Manhattan Corp. 184
1,800 Cullen/Frost Bankers, Inc. 47,362
1,400 Dime Bancorp Inc. 22,050
600 Dow Jones & Company, Inc. 43,950
600 Fleet Boston Financial Corp. 20,400
200 General Growth Properties 6,350
600 Golden West Financial Co. 24,488
415 Liberty Property Trust 10,764
618 North Fork BanCorp. 9,347
600 PMI Group, Inc. 28,500
400 PNC Bank Corp. 18,750
1,100 Painwebber Group, Inc. 50,050
600 Prentiss Properties Trust 14,400
1 Reliastar Financial Corp. 52
600 SouthTrust Corp. 13,575
1,500 Standard & Poor's 400 Mid-Cap
Depository Receipts 133,125
902 Standard & Poor's 500
Depository Receipts 131,044
629,954
HEALTHCARE - 10.16%
700 Alpharma, Inc. Cl. A 43,575
700 Bard C R, Inc. 33,688
1,100 Biomet, Inc. 42,281
1,200 Genzyme Corp.* 71,325
900 Lam Research Corp. 33,750
1,300 Renal Care Group* 31,789
1,400 Sybron International Corp.* 27,738
500 Wellpoint Health Networks, Inc.* 36,219
320,365
TECHNOLOGY - 13.05%
300 Advanced Micro Devices 23,175
300 ADC Telecommunication, Inc. 25,162
1 AT&T Corp. 32
300 BMC Software, Inc.* 10,945
400 Black & Decker Corp. 15,725
400 Black Box Corp.* 31,669
700 Cypress Semiconductor Corp.* 29,575
600 Integrated Device Technology, Inc.* 35,925
900 Jabil Circuit, Inc. 44,663
300 Microchip Technology, Inc. 17,480
900 Novellus Systems, Inc.* 50,906
300 Pinnacle West Capital Corp. 10,163
200 Rational Software Corp.* 18,587
900 SEI Investments Co. 35,831
675 Symbol Technologies 36,450
200 Waters Corp.* 24,962
411,250
TRANSPORTATION & SERVICES - 0.83%
500 General Dynamics Corp. 26,125
UTILITIES - 2.25%
800 AES Corp. 36,500
800 Dominion Resources, Inc. 34,300
2 FPL Group, Inc. 99
70,899
TOTAL COMMON STOCKS 3,026,977
(Cost $2,737,258)
FACE
AMOUNT DESCRIPTION MARKET VALUE
REPURCHASE AGREEMENT - 4.95%
$ 156,000 UMB Bank, n.a.,
3.50% due 7/03/00
(Collateralized by U.S.
Treasury Notes, 6.25%
due 12/15/07 with a
value of $163,800) 156,000
(Cost $156,000)
TOTAL INVESTMENTS - 100.97% 3,182,977
(Cost $2,893,258)
Other assets less liabilities - (0.97%) (30,630)
TOTAL NET ASSETS - 100.00% $ 3,152,347
The identified cost of investments owned at June 30, 2000, was the same for
federal income tax and book purposes.
Net unrealized appreciation for federal income tax purposes was $289,719,
which is comprised of unrealized appreciation of $436,917 and unrealized
depreciation of $147,198.
*Non-income producing security
See accompanying Notes to Financial Statements.
Small Cap Equity
The investment results for the first half of the year 2000
represented a continuation of last year's trends in the stock
market. We saw continued positive sentiment towards small cap
growth stocks, particularly in the area of technology. It was
also a very favorable environment for small cap IPOs. We
continued to take advantage of these favorable trends during the
first half of the year, although we experienced a significant
correction in the Portfolio from the middle of March to the end
of May as investors worried about higher interest rates and
equity valuations. Fortunately, the economy has shown some signs
of slowing in recent months, corporate earnings continue to be
quite robust, and interest rates appear to have stabilized for
the time being. As such, the Portfolio rebounded nicely in June,
and we are off to a solid start in the third quarter.
Our technology weighting advanced from 40% at the beginning of
the year to 47% at the end of June. We continue to be big
believers in the growth opportunities for this sector. By way of
example, we have often talked about our investment in Art
Technology Group (ARTG), a provider of e-commerce software
applications. ARTG generated $12 million in revenue in 1998 but
should generate over $200 million in revenue next year. We think
it truly is an exceptional time for new companies to achieve
significant business results.
We continue to find new investment opportunities in the IPO
market as well. We participated in the IPOs of around 50
companies during the first half of the year. A total of 248
companies went public in the first half of the year, which makes
it possible that this year's IPO market will exceed last year's
record 515 IPOs. Roughly 7% of the Portfolio's assets are
invested in companies which have gone public in the first half of
2000. Another 14% of the Portfolio's holdings went public during
1999. We continue to be optimistic about the Portfolio's
prospects and the small cap growth asset class for the coming quarters.
Stein Roe & Farnham Incorporated
Top Holdings
% of Total
Mrv Communications, Inc. 2.8%
Critical Path, Inc. 2.1%
Dsp Group, Inc. 2.0%
Titan Corp. 2.0%
Aspen Technology, Inc. 1.9%
Total 10.8%
As of June 30, 2000, schedule of investments. Subject to change.
Total Return as of June 30, 2000
Since Commencement
Six Months One year November 13, 1997
Small Cap Equity 19.85% 76.37% 19.07%
Schedule of Investments
June 30, 2000 (unaudited)
SMALL CAP EQUITY
SHARES COMPANY MARKET VALUE
COMMON STOCKS - 96.84%
BASIC MATERIALS - 0.70%
1,100 Stillwater Mining Co. $ 30,662
CAPITAL GOODS - 3.50%
1,300 Astec Industries 32,988
1,200 GSI Lumonics, Inc.* 42,150
1,200 Kemet Corp. 30,075
2,100 Tetra Technology 48,037
153,250
CONSUMER CYCLICAL - 6.56%
1,900 Ann Taylor Stores Corp.* 62,937
200 Catalina Marketing Corp. 20,400
1,300 CEC Entertainment 33,313
1,900 Chico's FAS, Inc. 38,000
600 Closure Medical Corp.* 13,800
300 Damark International, Inc.* 6,450
900 Net.Genesis Corp.* 16,256
400 99 Cents Only Stores 15,950
200 Radio One, Inc. 5,913
400 Radio One, Inc. Cl. D* 8,825
1,200 Station Casinos, Inc. 30,000
1,600 Tuesday Morning Corp.* 16,800
600 Tweeter Home Entertainment Group 18,225
286,869
CONSUMER STAPLES - 3.39%
2,100 American National Can Group 35,437
1,300 Aptargroup, Inc. 35,100
300 Aurora Biosciences Corp.* 20,456
700 Canadaigua Brands, Inc. Cl. A 35,306
600 Zale Corp.* 21,900
148,199
ENERGY - 4.88%
400 Barrett Resources Co.* 12,175
600 Cal Dive International, Inc.* 32,513
600 Hanover Compressor Co. 22,800
600 Louis Dreyfus Natural Gas* 18,788
1,100 Pogo Producing Co. 24,338
600 Pride International, Inc. 14,850
1,800 Santa Fe Snyder Corp. 20,475
900 Triton Energy . 35,381
800 UTI Energy Corp. 32,100
213,420
FINANCIAL - 3.96%
500 Choicepoint, Inc. 22,250
400 Globalnet Financial.com 8,400
600 Imperial Bancorp 9,338
2,500 London Pacific Group 32,500
1,200 Pinnacle Holdings, Inc.* 64,800
900 SEI Investments 35,831
173,119
HEALTHCARE - 11.08%
1,000 Allscripts, Inc.* 23,000
400 Alpharma, Inc. 24,900
1,500 Bindley Western Industries 39,656
300 Celgene Corp. 17,662
900 Chromavision Medical Systems 11,869
200 Cor Therapeutics* 17,062
900 Cubist Pharmaceuticals, Inc. 44,325
400 Cytyc Corp. 21,350
2,000 Dusa Pharmaceuticals, Inc. 59,000
500 Emisphere Technologies, Inc.* 21,305
600 Medicis Pharmaceutical Cl. A 34,200
500 Novoste Corp.* 30,500
700 Priority Healthcare Corp. Cl. B 52,019
800 Sangamo Biosciences* 22,100
500 Shire Pharmaceuticals Group* 25,938
300 Vical, Inc.* 5,775
700 Zoll Medical Corp.* 34,300
484,961
MEDIA & ENTERTAINMENT - 3.35%
800 Eloquent, Inc.* 7,200
1,000 Focal Communications Corp.* 35,750
400 Net2000 Communications, Inc.* 6,550
2,500 Primus Telecommunications Group, Inc. 62,187
200 Telaxis Communications Corp.* 6,250
500 TUT Communications, Inc.* 28,688
146,625
MISCELLANEOUS - 8.99%
1,600 ACT Manufacturing* 74,300
700 Capstone Turbine Corp.* 31,544
1,100 Concord Camera Corp. 22,962
600 Certicom Corp. 20,428
400 Genus, Inc. 3,275
500 Insituform Technologies, Inc. Cl. A* 13,562
300 Keynote Systems, Inc.* 21,169
1,100 Lightspan, Inc.* 6,050
1,800 MRV Communications, Inc. 121,050
300 Netegrity, Inc.* 22,594
400 Photon Dynamics, Inc.* 29,875
300 SonicWALL, Inc.* 26,419
393,228
TECHNOLOGY - 47.45%
1,000 Actuate Software Corp. 53,375
3,100 Apropos Technology, Inc.* 61,613
400 Art Technology Group, Inc. 40,375
900 Aspect Medical Systems, Inc.* 24,300
2,200 Aspen Technology, Inc. 84,700
800 Aware, Inc.* 40,900
400 BISYS Group* 24,600
4,200 Blue Wave Systems, Inc.* 43,313
600 Bluestone Software, Inc.* 15,412
850 Burr Brown Corp. 73,684
1,200 C-Cube Microsystems, Inc.* 23,550
300 Clarus Corp.* 11,663
1,400 Clickaction, Inc. 22,400
1,400 Commtouch Software Ltd.* 45,500
1,600 Critical Path, Inc.* 93,300
500 CTS Corp. 22,500
1,900 DDI Corp.* 54,150
1,600 DSP Group, Inc. 89,600
1,100 Electro Scientific Industries, Inc. 48,434
700 Electroglas, Inc. 15,050
1,400 Enzon, Inc.* 59,500
400 Espeed, Inc. Cl. A* 17,375
800 Extensity, Inc.* 27,400
800 Getthere.com, Inc.* 8,450
900 Hall Kinion & Associates, Inc.* 29,981
1,100 ITC Deltacom, Inc. 24,544
1,000 Inter-Tel, Inc. 16,063
300 Interwoven, Inc. 32,995
1,000 JNI Corp.* 31,625
400 LTX Corp.* 13,975
500 Macromedia, Inc. 48,344
800 Manugistics Group, Inc. 37,400
400 Marvel Technology Group Ltd.* 22,800
800 Matrixone, Inc.* 32,500
1,600 Media 100, Inc. 41,200
300 Mercator Software, Inc. 20,625
500 Mercury Interactive Corp. 48,375
400 Micrel Semiconductor, Inc. 17,375
700 Methode Electronics 27,037
600 National Computer Systems, Inc. 29,550
400 Newport Corp. 42,950
500 Oratech Interventions, Inc.* 16,688
350 Orbotech Ltd. 32,506
3,200 Overland Data, Inc.* 44,400
1,000 Paradyne Networks, Inc.* 32,562
200 Plexus 22,600
200 Predictive Systems, Inc.* 7,188
1,600 Prosofttraining.com* 26,900
1,500 Quicklogic Corp.* 33,375
700 Register.com* 21,394
600 SPSS, Inc.* 17,475
1,000 Silicon Valley Bancshares 42,625
500 Symantec Corp. 26,969
500 Therma-Wave, Inc.* 11,156
2,000 Titan Corp.* 89,500
1,300 Varian Semiconductor Equipment* 81,656
700 Wind River Systems 26,513
500 Xircom, Inc.* 23,750
2,075,740
TRANSPORTATION & SERVICES - 2.81%
600 Expeditors International 28,500
1,000 Forward Air Corp. 40,000
1,000 SkyWest, Inc. 37,062
700 U.S. Freightways Corp. 17,194
122,756
UTILITIES - 0.17%
900 Independent Energy Holdings* 7,481
TOTAL COMMON STOCKS 4,236,310
(Cost $3,365,732)
FACE
AMOUNT DESCRIPTION MARKET VALUE
REPURCHASE AGREEMENT - 7.31%
$ 320,000 UMB Bank, n.a.,
5.90%, due 7/03/00
(Collateralized by U.S.
Treasury Notes, 6.625%
due 6/30/01 with a
value of $327,307) 320,000
(Cost $320,000)
TOTAL INVESTMENTS - 104.15% 4,556,310
(Cost $3,685,732)
Other assets less liabilities - (4.15%) (181,650)
TOTAL NET ASSETS - 100.00% $ 4,374,660
The identified cost of investments owned at June 30, 2000, was
the same for federal income tax and book purposes.
Net unrealized appreciation for federal income tax purposes was
$870,578, which is comprised of unrealized appreciation of
$1,167,462 and unrealized depreciation of $296,884.
*Non-income producing security
See accompanying Notes to Financial Statements.
Growth & Income
Throughout 1999 and the opening months of this year, investors
were caught up in a price and earnings growth-driven "momentum
market." The variance between stocks of "old economy" companies
(older, more established companies in cyclical industries like
transportation, manufacturing and basic industries) and "new
economy" companies (new, speculative companies primarily in the
technology sector) became even more apparent in the first quarter
of 2000. As new economy stocks rallied, old economy stocks
underperformed. Two interest rate increases by the Federal
Reserve Board (the "Fed") only exacerbated the situation, and
investors continued to pour money into the small number of stocks
that provided positive returns in the recent past. Toward the end
of the first quarter, this pattern began to change. In late
March, investors seemed to wake up to the risks of "momentum"
investing, and value investing once again gained favor.
In April and May, equity markets continued to experience a
considerable turnaround due to the shift in investors' attitudes
toward equity investing. Whereas the technology-rich NASDAQ Index
had previously led the market, it fell by some 37% from its March
peak to the end of May. By contrast, the broad Standard & Poor's
500 Index* fell only 10%, and the Dow Jones Industrial Average
(DJIA)* fell less than 5%. Investors reacted abruptly to economic
and corporate earnings announcements. Investors' focus on
consumer-oriented factors, such as retail sales, housing,
investor confidence and employment, seemed to signal an economic
slowing from the extremely high levels of prior periods. Hope for
a "soft landing" emerged. Momentum-oriented sectors, such as
technology, returned to favor in June. Nevertheless, a renewed
sensitivity to risk and wariness about fundamentals challenged
many investors' decisions.
The technology stocks we held continued to be shining stars in
the Portfolio. While we enjoyed the performance of many of our
technology stocks, we had to pay close attention to accelerating
valuations and, in some cases, sell off positions when stock
prices appreciated to where we believed they were fully-valued.
Utility stocks, a leading indicator of a change in monetary
policy, were the star performers of the large-cap style in the
second quarter. We selectively, if not defensively, added to the
sector in preparation for a slowdown in the economy and because
we believed the Fed was near the end of its recent round of
tightenings. A development in the utilities sector involving the
convergence of electric and gas power also benefited several of
our holdings. Our relatively large exposure to oil service
companies paid off well, as rising oil prices helped boost the
price of many of these stocks. Our careful stock picking and
general overweighting in stocks of consumer non-cyclical companies,
particularly healthcare companies, also significantly buoyed performance.
At the onset of the second quarter, we already had begun reducing
the Portfolio's exposure to many "new economy" stocks in the
technology, telecommunications and media sectors due to high
valuations and concerns over inflated expectations on the
sustainability of current business fundamentals. In exchange, we
made select investments in undervalued "old economy" stocks. We
maintained this weighting shift throughout the second quarter.
The investing environment now seems suited to a moderately
defensive strategy consistent with a slowdown in the economy, but
not an absolute downturn. Investors' clear new preference for
stable sectors suggests a renewed interest in earnings
predictability, valuations, and financial strength - qualities
that are well suited to a slower growth environment. At the same
time, concern over value has led investors to reconsider small
and particularly medium capitalization issues which investors
have neglected, at least relatively speaking. Signs of a slowdown
in economic growth confirm the desirability of a cautious
approach and renewed attention to investment fundamentals and value.
Lord, Abbett & Co.
* S&P 500 Index consists of 500 stocks chosen for market size,
liquidity and industry group representation and is widely
regarded as the standard for measuring U.S. stock market performance.
Indices are unmanaged and not available for direct investment.
Top Holdings
% of Total
American Home Products Corp. 2.9%
Exxon Mobil Corp. 2.5%
BP Amoco 2.5%
ACE Ltd. 2.4%
American General Corp. 2.2%
Total 12.5%
As of June 30, 2000, schedule of investments. Subject to change.
Total Return as of June 30, 2000
Since Commencement
Six Months One Year November 13, 1997
Growth & Income -1.82% -0.18% 11.69%
Schedule of Investments
June 30, 2000 (unaudited)
GROWTH & INCOME FUND
SHARES COMPANY MARKET VALUE
COMMON STOCKS - 91.56%
BASIC MATERIALS - 6.87%
2,600 Alcoa, Inc. $ 75,400
1,300 Bowater, Inc. 57,363
2,400 Dow Chemical Co. 72,450
353 International Paper Co. 10,524
1,200 Rohm & Haas Co. 41,400
1,400 USX-U.S. Steel Group 25,987
283,124
CAPITAL GOODS - 5.63%
700 Boeing Co. 29,269
1,900 Deere & Co. 70,300
1,900 Honeywell International, Inc. 64,006
900 TRW, Inc. 39,037
500 United Technologies Corp. 29,437
232,049
CONSUMER CYCLICAL - 6.88%
700 Avon Products 31,150
1,100 Black & Decker Corp. 43,244
2,300 Consolidated Stores Corp. 27,600
1,000 Dow Jones & Company, Inc. 73,250
1,200 Federated Department Stores, Inc.* 40,500
355 General Motors Corp. 20,612
48 General Motors Corp. Cl. H 4,205
800 Seagram Co. Ltd. 43,000
283,561
CONSUMER STAPLES - 2.62%
5,500 Archer-Daniels-Midland Co. 53,969
1,200 Safeway, Inc. 54,150
108,119
ENERGY - 12.86%
1,800 BP Amoco PLC 101,813
1,700 Coastal Corp. 103,487
1,300 Exxon Mobil Corp. 102,050
1,100 Schlumberger Ltd. 82,088
1,500 Tosco Corp. 42,469
1,000 Total Fina SA 76,812
400 Transocean Sedco Forex, Inc. 21,375
530,094
FINANCIAL - 21.56%
3,500 ACE Ltd. 98,000
1,500 American General Corp. 91,500
2,500 Aon Corp. 77,656
1,500 Bank One Corp. 39,844
1,500 Chase Manhattan Corp. 69,094
600 Cigna Corp. 56,100
1,300 Federal National Mortgage Association 67,844
2,100 Fleet Boston Financial Corp. 71,400
1,200 Jefferson Pilot Corp. 67,725
4,000 Metlife, Inc.* 84,250
700 Morgan Stanley Dean Witter & Co. 58,275
1,200 St. Paul Companies 40,950
1,700 Wells Fargo Co. 65,875
888,513
HEALTHCARE - 7.74%
2,000 American Home Products Corp. 117,500
300 Baxter International, Inc. 21,094
1,800 Columbia/HCA Healthcare Corp. 54,675
1,100 Pharmacia Corp. 56,856
800 UnitedHealth Group, Inc. 68,600
318,725
MISCELLANEOUS - 2.20%
1,100 Minnesota Mining & Mfg. Co. 90,750
TECHNOLOGY - 13.52%
770 AT&T Corp. 24,351
800 Apple Computer, Inc. 41,900
2,400 Cadence Design Systems, Inc. 48,900
1,800 Compaq Computer Corp. 46,012
400 Computer Sciences Corp. 29,875
900 First Data Corp. 44,663
500 International Business Machines Corp. 54,781
800 Oracle Corp. 67,250
400 Sun Microsystems, Inc. 36,375
600 Texas Instruments, Inc. 41,213
1,200 Unisys Corp. 55,050
976 Viacom, Inc. Cl. B 66,734
557,104
TRANSPORTATION & SERVICES - 0.57%
400 United Parcel Service 23,600
UTILITIES - 11.11%
800 Alltel Corp. 49,550
1,200 Bell Atlantic Corp.* 60,975
2,000 Dominion Resources, Inc. 85,750
1,400 Duke Energy Corp. 78,925
2,700 FirstEnergy Corp. 63,113
900 Reliant Energy, Inc. 26,606
900 SBC Communications, Inc. 38,925
1,400 Unicom Corp. 54,162
458,006
TOTAL COMMON STOCKS 3,773,645
(Cost $3,318,337)
PREFERRED STOCK - 1.21%
400 Houston Industries 49,750
(Cost $32,468)
FACE
AMOUNT DESCRIPTION MARKET VALUE
REPURCHASE AGREEMENT - 7.16%
$ 295,000 UMB Bank, n.a.,
5.90% due 7/03/00
(Collateralized by U.S.
Treasury Notes, 6.625%
due 6/30/01 with a
value of $301,282) 295,000
(Cost $295,000)
TOTAL INVESTMENTS - 99.93% 4,118,395
(Cost $3,645,805)
Other assets less liabilities - 0.07% 2,989
TOTAL NET ASSETS - 100.00% $ 4,121,384
The identified cost of investments owned at June 30, 2000, was the same for
federal income tax and book purposes.
Net unrealized appreciation for federal income tax purposes was $472,590,
which is comprised of unrealized appreciation of $715,651 and unrealized
depreciation of $243,061.
*Non-income producing security
See accompanying Notes to Financial Statements.
Balanced
The Balanced Portfolio showed strong performance during the first
six months of 2000, despite rising interest rates and a flat
stock market. The six-month total return (price change and
reinvested distributions) through June 30, 2000 was 8.70%. The
returns for the past twelve months and since inception
(annualized) were 5.93% and 3.97%, respectively. Asset
allocation at June 30, 2000 was roughly 71% stocks, 12%
corporate bonds, 15% convertible securities and 2% cash. The Portfolio
continues to generate an attractive current yield of approximately 4%.
The key to Portfolio performance this year has been good stock
selection. The Portfolio had healthy weightings in the
semiconductor and pharmaceutical sectors, both which have
performed very well year-to-date. Top performers included Intel,
Atmel and Micron Technology in semiconductors and Abbott Labs,
American Home Products and Schering-Plough among the drugs.
Strong performers in other areas included Kansas City Southern
(the parent of the Janus Funds), Scientific Atlanta, Enron and Pepsi.
Looking to the remainder of 2000, we remain quite optimistic
about the stock and bond markets. The odds of Mr. Greenspan
negotiating a soft landing for the economy are looking very good.
The bite of higher interest rates has slowed consumer spending
markedly and taken the froth out of the stock market. Yet, with
near full employment it appears very unlikely that GDP growth
will move below the 3% to 4% range. While the labor market
remains tight, strong corporate productivity growth has allowed
companies to pay better wages without passing through the higher
costs to consumers. All the above is good news for sustaining the
positive trends in inflation and corporate earnings. If oil
prices drop to the low $20s (and we think they will because Saudi
Arabia wants them to), then long-term interest rates could move
lower over the next 6 to 12 months. If these trends are correct,
we believe the Balanced Portfolio is well positioned to benefit.
Kornitzer Capital Management, Inc.
Top Holdings
% of Total
Kansas City Southern Industries 4.7%
Merck & Company, Inc. 3.5%
Scientific Atlanta, Inc. 3.4%
American Express Co. 3.2%
Schering-Plough Corp. 3.1%
Total 17.9%
As of June 30, 2000, schedule of investments. Subject to change.
Total Return as of June 30, 2000
Since Commencement
Six Months One Year November 13, 1997
Balanced 8.70% 5.93% 3.97%
Schedule of Investments
June 30, 2000 (unaudited)
BALANCED
SHARES COMPANY MARKET VALUE
COMMON STOCKS - 70.36%
CONSUMER CYCLICAL - 12.34%
2,000 Argosy Gaming Co.* $ 28,750
1,500 Carnival Corp. 29,250
3,500 Elcor Corp. 80,500
3,000 Ethan Allen Interiors, Inc. 72,000
1,500 Ford Motor Co. 64,500
3,000 ServiceMaster Co. 34,125
4,000 Strayer Education, Inc. 96,000
405,125
CONSUMER STAPLES - 2.01%
500 McDonald's Corp. 16,469
500 PepsiCo, Inc. 22,219
475 Procter & Gamble Co. 27,193
65,881
ENERGY - 2.80%
11,500 Frontier Oil Corp.* 92,000
FINANCIAL - 16.95%
2,000 American Express Co. 104,250
1,500 Bank of America Corp. 64,500
2,000 Fleet Boston Financial Corp. 68,000
1,750 Kansas City Southern Industries 155,203
1,000 PNC Bank Corp. 46,875
3,000 UnumProvident Corp. 60,188
2,000 Washington Mutual, Inc. 57,750
556,766
HEALTHCARE - 10.59%
500 Abbott Laboratories 22,281
750 American Home Products Corp. 44,062
250 Bristol Myers Squibb 14,563
500 Johnson & Johnson 50,938
1,500 Merck & Company, Inc. 114,937
2,000 Schering-Plough Corp. 101,000
347,781
TECHNOLOGY - 20.16%
500 Analog Devices, Inc. 38,000
500 Applied Materials, Inc. 45,313
500 Atmel Corp. 18,437
1,500 Cisco Systems, Inc. 95,344
3,500 Compaq Computer Corp. 89,469
750 Intel Corp. 100,266
750 Microsoft Corp. 60,000
250 Micron Technology, Inc. 22,015
1,500 Motorola, Inc. 43,594
1,500 Scientific Atlanta, Inc. 111,750
1,000 Wind River Systems 37,875
662,063
TRANSPORTATION - 4.04%
2,000 FDX Corp. 76,000
3,000 Southwest Airlines Co. 56,813
132,813
UTILITIES - 1.47%
750 Enron Corp. 48,375
TOTAL COMMON STOCKS 2,310,804
(Cost $1,965,632)
CONVERTIBLE PREFERRED STOCKS - 4.53%
2,000 Bethlehem Steel 32,500
1,300 Freeport-McMoRan Oil and Gas
Royalty Trust 17,306
6,000 ICO, Inc. 75,000
250 Kmart Financing 9,109
500 TXI Capital Trust 14,875
TOTAL CONVERTIBLE PREFERRED STOCKS 148,790
(Cost $251,321)
FACE
AMOUNT DESCRIPTION MARKET VALUE
CORPORATE BONDS - 11.95%
$ 25,000 Adelphia Communications,
9.25% due 10/01/02 24,781
25,000 Argosy Gaming,
10.75% due 6/01/09 25,969
15,000 Callon Petroleum,
10.00% due 12/15/01 14,512
100,000 Eagle Geophysical, Inc.,*
10.75% due 7/15/08 9,500
50,000 Frontier Oil Corp.,
9.125% due 2/15/06 44,500
15,000 Kmart Funding, Series G,
9.44% due 7/01/18 14,679
25,000 McDermott International, Inc.,
9.375% due 3/15/02 17,842
10,000 MGM Grand, Inc.,
9.75% due 6/01/07 10,225
50,000 Republic Group,
9.50% due 7/15/08 41,750
25,000 Rogers Communication,
9.125% due 1/15/06 24,625
50,000 Specialty Retailers, Inc.,
9.00% due 7/15/07 875
25,000 Station Casinos,
8.875% due 12/01/08 23,938
25,000 Triton Energy Limited Corp.,
9.25% due 4/15/05 24,875
125,000 United Refining Co.,
10.75% due 6/15/07 75,625
50,000 Wiser Oil Co.,
9.5% due 5/15/07 38,750
TOTAL CORPORATE BONDS 392,446
(Cost $601,801)
CONVERTIBLE CORPORATE BONDS - 10.65%
$ 55,000 Allwaste, Inc.,
7.25% due 6/01/14 4,400
175,000 HMT Technology Corp.,
5.75% due 1/15/04 76,125
90,000 Intervac, Inc.,
6.50% due 3/01/04 40,725
100,000 Key Energy Group,
5.00% due 9/15/04 79,000
101,000 Lomak Petroleum,
6.00% due 2/01/07 60,600
75,000 Sunrise Assisted Living,
5.50% due 6/15/02 64,781
25,000 Swift Energy Co.,
6.25% due 11/15/06 24,312
TOTAL CONVERTIBLE CORPORATE BONDS 349,943
(Cost $532,128)
TOTAL INVESTMENTS - 97.49% 3,201,983
(Cost $3,350,882)
Other assets less liabilities - 2.51% 82,392
TOTAL NET ASSETS - 100.00% $ 3,284,375
The identified cost of investments owned at June 30, 2000, was
the same for federal income tax and book purposes.
Net unrealized depreciation for federal income tax purposes was
$148,899, which is comprised of unrealized appreciation of
$476,618 and unrealized depreciation of $625,517.
*Non-income producing security
See accompanying Notes to Financial Statements.
Intermediate Fixed Income
The Intermediate Fixed Income Portfolio provided a competitive
absolute return, but one that was slightly under its benchmark in
the first half of 2000. Bonds provided a competitive return to
and less risk than other asset classes as a group of factors
buffeted investors and increased volatility in global financial
markets. Included here must be the transition to lower growth by
the domestic economy, fears of a resurgence of inflation, the
Treasury surplus and buyback, and the Fed's actions on interest rates.
This scenario resulted in negative returns for some asset
classes, but returns for bonds have been positive and in favor of
U.S. Treasuries, given their safety and scarcity value. As value
stocks have been the unfavored vehicle in equity
markets, non-Treasuries (corporates and mortgages) have lost
ground in the bond market. We see interest rates showing near-
term stability, but we project a swing away from Treasuries due
to their overvaluation. We have repositioned the Portfolio in
less Treasuries to provide what we believe are better returns
during a soft landing of the economy.
Standish, Ayer & Wood, Inc.
Total Return as of June 30, 2000
Since Commencement
Six Months One Year November 13, 1997
Intermediate
Fixed Income 3.34% 3.67% 3.64%
Schedule of Investments
June 30, 2000 (unaudited)
INTERMEDIATE FIXED INCOME
SHARES COMPANY MARKET VALUE
CONVERTIBLE PREFERRED STOCK - 0.81%
500 Equity Office Properties $ 21,000
(Cost $25,000)
FACE
AMOUNT DESCRIPTION MARKET VALUE
CORPORATE BONDS - 41.86%
$ 25,000 Abbey National,
6.70% due 6/29/49 22,577
10,000 American Standard,
7.125% due 2/15/03 9,575
25,000 Aramark Services,
6.75% due 8/01/04 23,715
25,000 Bank of Boston Home,
6.14% due 6/25/13 23,346
25,000 Capital One Master Trust,
5.43% due 1/15/07 23,705
25,000 Chase Commercial Mortgage,
7.37% due 12/19/07 23,301
25,000 C K Witco,
8.50% due 3/15/05 25,260
10,000 Clear Channel Communication,
7.875% due 6/15/05 10,058
10,000 Coastal Corp.,
7.75% due 6/15/10 9,950
25,000 Conseco Financial,
6.80% due 6/15/05 16,625
25,000 Cox Communications,
7.75% due 8/15/06 24,908
25,000 CSC Holdings,
7.875% due 12/15/07 24,247
25,000 CSX Corp.,
7.25% due 5/01/04 24,426
25,000 CVS Corp.,
5.50% due 2/15/04 23,587
25,000 Daimler Chrysler,
6.90% due 9/01/04 24,514
25,000 Delta Airlines,
7.70% due 12/15/05 24,112
25,000 Ford Credit Auto,
7.19% due 3/15/04 24,976
25,000 Ford Motor Corp.,
7.50% due 3/15/05 24,831
25,000 Fort James Corp.,
6.875% due 9/15/07 23,358
25,000 GE Capital,
7.50% due 5/15/05 25,279
15,000 GS Escrow Corp.,
7.00% due 8/01/03 13,919
30,000 GS Escrow Corp.,
7.125% due 8/01/05 26,802
25,000 ICI Wilmington,
6.95% due 9/15/04 24,128
10,000 International Paper,
8.00% due 7/08/03 10,040
25,000 Lear Corp.,
7.96% due 5/15/05 23,522
50,000 Lehman Brothers,
6.625% due 12/27/02 48,693
10,000 Morgan Stanley,
7.75% due 6/15/05 10,062
25,000 News America Holdings,
7.75% due 12/1/45 21,775
5,000 Norfolk Southern Corp.,
8.375% due 5/15/05 5,146
25,000 NVR, Inc.,
8.00% due 6/01/05 23,125
25,000 Owens Illinois, Inc.,
7.50% due 5/15/10 21,468
9,000 Panama,
9.375% due 4/01/29 8,626
25,000 Panamsat Corp.,
6.00% due 1/15/03 23,783
25,000 Qwest Communications,
7.50% due 11/01/08 24,301
25,000 Republic Service,
7.125% due 5/15/09 22,316
10,000 Royal Caribbean,
6.75% due 3/15/08 8,620
25,000 Safeway Stores,
6.05% due 11/15/03 23,871
75,000 Simon Debartolo,
7.125% due 6/24/05 71,272
15,000 Smithfield Foods, Inc.,
7.625% due 2/15/08 13,500
50,000 Tenet Healthcare Corp.,
8.625% due 12/01/03 49,507
25,000 Time Warner, Inc.,
7.57% due 2/01/24 23,697
25,000 Toll Corp.,
8.00% due 5/01/09 22,375
25,000 Tricon Global Restaurants, Inc.,
7.45% due 5/15/05 23,460
25,000 TRW, Inc.,
6.625% due 6/01/04 23,839
25,000 United Technologies,
6.625% due 11/15/04 24,476
25,000 UPM-Kymmene Corp.,
7.45% due 11/26/27 21,487
15,000 USA Waste Services, Inc.,
6.50% due 12/15/02 14,127
25,000 U.S. Bancorp,
6.00% due 5/15/04 23,704
TOTAL CORPORATE BONDS 1,083,991
(Cost $1,128,984)
FOREIGN GOVERNMENT SPONSORED - 0.37%
5,000 Poland Brady Bearer,
6.00% due 10/27/14 4,474
5,000 Republic of Korea,
8.875% due 4/15/08 5,210
TOTAL FOREIGN GOVERNMENT SPONSORED 9,684
(Cost $9,589)
U.S. GOVERNMENT SECURITIES - 13.27%
U.S. Treasury Bonds
55,000 9.25% due 2/15/16 71,277
70,000 8.125% due 5/15/21 85,247
25,000 5.25% due 2/15/29 22,187
50,000 6.25% due 5/15/30 52,500
U.S. Treasury Inflation Index Bonds
21,368 3.625% due 7/15/02 21,235
52,169 3.875% due 1/15/09 51,419
U.S. Treasury Notes
40,000 6.00% due 8/15/09 39,687
TOTAL U.S. GOVERNMENT SECURITIES 343,552
(Cost $339,126)
U.S. GOVERNMENT SPONSORED - 37.67%
Federal Home Loan Mortgage Corp.
25,000 5.75% due 3/15/09 22,769
49,046 6.00% due 6/01/29 44,939
48,938 7.50% due 12/1/29 48,281
Federal National Mortgage Assn.
25,000 5.125% due 2/13/04 23,475
75,000 5.625% due 5/14/04 71,449
12,240 9.00% due 11/01/25 12,627
24,972 6.00% due 3/01/29 22,857
47,592 6.50% due 4/01/29 44,915
24,892 6.50% due 6/01/29 23,491
49,262 6.50% due 8/01/29 46,491
24,998 7.00% due 1/01/30 24,131
48,945 7.50% due 1/01/30 48,241
25,001 7.00% due 2/01/30 24,134
174,019 7.50% due 4/01/30 171,516
25,000 7.50% due 6/01/30 24,640
50,000 8.50% due 8/01/30 50,851
Government National Mortgage Assn.
26,982 9.00% due 12/15/17 28,188
21,493 7.00% due 2/15/26 20,909
21,708 7.00% due 11/15/27 21,111
21,536 7.00% due 3/15/28 20,937
23,239 7.00% due 4/15/28 22,593
21,517 7.00% due 7/15/28 20,918
85,316 8.00% due 7/15/29 86,481
24,670 8.00% due 11/15/29 24,933
24,481 8.00% due 12/15/29 24,741
TOTAL GOVERNMENT SPONSORED 975,618
(Cost $982,469)
COLLATERALIZED MORTGAGE OBLIGATIONS - 3.85%
25,000 American Express Credit,
7.40% due 9/17/07 25,068
25,000 Americredit Auto,
7.29% due 12/05/06 24,902
25,000 GMAC Mtg. Oakwood Mortgage Inv.,
6.853% due 9/15/06 24,552
25,000 Daimler Chrysler,
7.23% due 1/06/05 25,091
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS 99,613
(Cost $100,984)
SHORT-TERM CORPORATE NOTES - 1.91%
50,000 American Express,
6.55% due 8/16/00 49,582
(Cost $49,582)
REPURCHASE AGREEMENT - 1.08%
28,000 State Street Bank and Trust Co.,
3.50% due 7/03/00
(Collateralized by U.S.
Treasury Bills, 9.125%
due 5/15/18 with a
value of $33,000) 28,000
(Cost $28,000)
TOTAL INVESTMENTS - 100.82% 2,611,040
(Cost $2,663,734)
Other assets less liabilities - (0.82%) (21,202)
TOTAL NET ASSETS - 100.00% $ 2,589,838
The identified cost of investments owned at June 30, 2000, was
the same for federal income tax and book purposes.
Net unrealized depreciation for federal income tax purposes was $52,694,
which is comprised of unrealized appreciation of $11,694 and unrealized
depreciation of $64,388.
See accompanying Notes to Financial Statements.
Global Fixed Income
International bond performance was positive, but the markets and
central banks were still somewhat nervous that strong economic
growth would lead to higher inflation. In response, central banks
continued raising interest rates to slow growth and reduce
inflationary pressures. The bond markets seemed to take some
measure of comfort from these actions, as both first and second
quarter returns were positive.
Central bank interest rate hikes were the dominant market news in
the first half of the year. With inflation rising due to the
spike in oil prices, tight labor markets, and strong credit
growth, central banks proved themselves to be conscientious
inflation fighters, determined not to let inflation get out of control.
Early in the year, the inflation scare and more aggressive
interest rate increases contributed to poor global bond market
performance. However, performance picked up as the U.S. and
global economy showed initial signs of a slowdown, reducing the
need for more aggressive interest rate hikes.
Global economic growth peaked in the second quarter and we expect
it will slow from its current pace of 5% to 3% by the end of the
year - an encouraging sign for bond markets. There is still the
possibility that economic growth may slow even faster depending
on future U.S. economic conditions. For these reasons, we believe
2000 will be a good year for international bond market investments.
Standish International Management Co., L.P.
Fund Diversification
% of Total
Basic Materials 0.4%
Capital Goods 0.8%
Consumer Cyclical 7.2%
Consumer Staples 1.3%
Financial 12.2%
Technology 4.4%
Utilities 0.4%
Government Bonds 36.6%
Collateralized Mortgage Obligations 1.3%
U.S. Government Securities 19.5%
U.S. Government Sponsored 10.3%
Convertible Preferred Stock 0.3%
Call Options Purchased 0.5%
Put Options Purchased 0.1%
Cash & Equivalents 4.7%
As of June 30, 2000, schedule of investments. Subject to change.
Total Return as of June 30, 2000
Since Commencement
Six Months One Year November 13, 1997
Global Fixed
Income 3.48% 3.30% 4.59%
Schedule of Investments
June 30, 2000 (unaudited)
Global Fixed Income
FACE
AMOUNT* DESCRIPTION MARKET VALUE
CORPORATE BONDS - 26.74%
AUSTRALIA - 1.98%
6,000,000 OKB,
1.80% due 3/22/10 $ 57,104
6,000,000 Westpac Banking,
0.875% due 9/22/03 56,342
113,446
DENMARK - 0.01%
1,000 Denmark Realkredit,
8.00% due 10/01/26 139
2,000 Denmark Unicredit,
6.00% due 10/01/29 235
374
GERMANY - 0.47%
25,000 DBR,
6.50% due 7/04/27 26,941
JAPAN - 3.79%
5,000,000 IBM Corp.,
0.900% due 4/14/03 47,008
8,000,000 KFW International Finance,
1.75% due 3/23/10 75,725
10,000,000 McDonald's Corp.,
2.00% due 3/09/10 94,291
217,024
MEXICO - 0.30%
15,000 Mexico Global,
11.375% due 9/15/16 17,175
NETHERLANDS - 1.37%
10,000 Ahold Finance,
4.00% due 5/19/05 10,419
25,000 Deutsche Telecom,
6.125% due 7/06/05 23,836
50,000 KPN-Qwest B.V.,
7.125% due 6/01/09 44,089
78,344
UNITED KINGDOM - 3.46%
29,000 Abbey National,
7.75% due 12/31/03 45,469
40,000 Lehman Brothers,
6.95% due 6/22/04 59,762
25,000 National Westminster,
6.625% due 6/30/11 22,858
25,000 OTE,
6.125% due 2/07/07 23,496
50,000 Tate & Lyle,
5.75% due 10/06/06 46,287
197,872
UNITED STATES - 15.36%
10,000 American Standard,
7.125% due 2/15/03 9,575
50,000 American Standard,
7.125% due 6/01/06 47,517
25,000 Aramark Services,
6.75% due 8/01/04 23,715
50,000 Caterpillar, Inc.,
6.18% due 11/17/00 50,007
25,000 Clear Channel,
6.50% due 7/07/05 23,876
25,000 Conseco Financial Notes,
6.80% due 6/15/05 16,625
30,000 Ford Motor Credit,
3.75% due 7/12/04 26,668
60,000 Ford Motor Credit,
7.375% due 10/28/09 58,201
25,000 Ford Credit Auto,
7.19% due 3/15/04 24,976
25,000 Ford Credit Auto,
7.37% due 7/15/04 24,985
25,000 Fort James Corp.,
4.75% due 6/29/04 22,563
30,000 GMAC,
5.50% due 2/02/05 28,345
40,000 GE Cap,
5.125% due 1/12/04 57,749
15,000 GS Escrow Corp.,
7.00% due 8/01/03 13,919
20,000 GS Escrow Corp.,
7.125% due 8/01/05 17,868
50,000 National Westminster Bank,
7.75% due 4/29/49 47,995
25,000 News Amer Holdings,
7.75% due 12/01/45 21,775
25,000 Niagra Mohawk Power,
7.75% due 10/01/08 24,408
25,000 NVR, Inc.,
8.00% due 6/01/05 23,125
40,000 Panama,
7.875% due 2/13/02 39,400
25,000 Panamsat Corp.,
6.125% due 1/15/05 23,040
25,000 Qwest Communications,
7.50% due 11/01/08 24,301
25,000 Speedway Motors,
8.50% due 8/15/07 23,375
25,000 Time Warner, Inc.,
7.75% due 6/15/05 25,207
10,000 Tricon Global Rest,
7.65% due 5/15/08 8,900
25,000 UPM-Kymmene Corp.,
7.45% due 11/26/27 21,488
50,000 US Bancorp,
6.997% due 5/16/01 50,131
50,000 Vodafone Group,
6.698% due 12/19/01 49,981
50,000 Wells Fargo Co.,
6.418% due 4/26/02 49,923
879,638
TOTAL CORPORATE BONDS 1,530,814
(Cost $1,750,116)
GOVERNMENT BONDS - 36.58%
CANADA - 5.90%
80,000 Canadian Govt.,
6.00% due 9/01/05 105,330
85,000 Canadian Govt.,
6.00% due 6/01/08 54,429
55,196 Canadian Govt.,
5.50% due 6/01/09 56,069
50,000 Ontario Province of Canada,
6.375% due 6/10/04 75,012
5,000,000 Ontario Province of Canada,
1.875% due 1/25/10 47,199
338,039
GERMANY - 13.61%
60,000 BKO,
3.25% due 9/15/00 57,190
60,000 Bundesobl,
5.125% due 11/21/00 57,449
25,000 Bundesobl,
5.25% due 2/21/01 23,951
90,000 Bundesobl,
4.75% due 11/20/01 85,877
170,000 Bundesobl,
4.50% due 8/19/02 161,105
190,000 Deutschland Republic,
5.375% due 1/04/10 183,404
170,000 Deutschland Republic,
6.25% due 1/04/24 176,144
35,000 Deutschland Republic,
5.625% due 1/04/28 33,886
779,006
ITALY - 2.56%
10,000,000 Italy Govt.,
1.80% due 2/23/10 94,897
50,000 Italy Govt.,
6.50% due 11/01/27 51,597
146,494
JAPAN - 6.05%
5,000,000 Italy Euroyen,
5.125% due 7/29/03 53,480
20,000,000 Spanish Kingdom Euroyen,
4.75% due 3/14/05 220,144
7,000,000 Spanish Kingdom Euroyen,
3.10% due 9/20/06 72,469
346,093
MEXICO - 1.01%
6,000,000 United Mexican,
3.10% due 4/24/02 57,812
SINGAPORE - 1.32%
90,000 Singapore Govt.,
3.50% due 2/01/04 51,626
40,000 Singapore Govt.,
5.125% due 11/15/04 24,206
75,832
SWEDEN - 1.58%
800,000 Sweden Govt.,
5.00% due 1/15/04 90,196
TURKEY - 0.26%
1,300,000,000 Turkey Treasury Bill,
0% due 8/22/01 14,975
UNITED KINGDOM - 3.90%
50,000 UK Gilt Treasury,
9.00% due 10/13/08 93,892
70,000 UK Gilt Treasury,
5.75% due 12/07/09 110,673
10,000 UK Gilt Treasury,
6.00% due 12/07/28 18,823
223,388
URUGUAY - 0.39%
45,000 Banco Comercial,
8.25% due 10/04/00 22,079
TOTAL GOVERNMENT BONDS 2,093,914
(Cost $1,913,292)
COLLATERALIZED MORTGAGE OBLIGATIONS - 1.27%
50,000 American Express Credit,
5.60% due 11/15/06 47,427
25,000 Daimler Chrysler,
7.23% due 1/06/05 25,091
TOTAL COLLATERAL MORTGAGE OBLIGATIONS 72,518
(Cost $72,368)
U.S. GOVERNMENT SECURITIES - 19.47%
U.S. Treasury Bonds
110,000 9.25% due 2/15/16 142,553
285,000 8.125% due 5/15/21 347,077
65,000 6.25% due 5/15/30 68,250
U.S. Treasury Inflation Index Bonds
64,106 3.625% due 7/15/02 63,705
156,506 3.875% due 1/15/09 154,256
U.S. Treasury Notes
200,000 7.875% due 11/15/04 211,750
50,000 6.00% due 8/15/09 49,609
75,000 6.50% due 2/15/10 77,578
TOTAL U.S. GOVERNMENT SECURITIES 1,114,778
(Cost $1,092,726)
U.S. GOVERNMENT SPONSORED - 10.28%
Federal Home Loan Mortgage Corp.
475,000 6.515% due 8/17/00 470,960
50,000 5.75% due 6/15/01 49,512
50,000 5.75% due 3/15/09 45,539
Federal National Mortgage Assn.
24,841 6.00% due 6/01/29 22,737
TOTAL U.S. GOVERNMENT SPONSORED 588,748
(Cost $588,558)
SHARES COMPANY MARKET VALUE
CONVERTIBLE PREFERRED STOCK - 0.37%
500 Equity Office Properties 21,000
(Cost $25,000)
FACE AMOUNT*
OR SHARES expiration date/exercise price MARKET VALUE
CALL OPTIONS PURCHASED - 0.51%
German Government Bond
100,000 Jul 00 / 93.990 $ -
50,000 Jul 00 / 95.430 -
50,000 Aug 00 / 99.010 1
50,000 Aug 00 / 101.200 -
50,000 Sept 00 / 85.930 1,724
100,000 Sept 00 / 90.200 707
50,000 Sept 00 / 91.050 232
50,000 Oct 00 / 95.540 315
50,000 Nov 00 / 95.420 387
100,000 Jan 01 / 99.210 2,171
50,000 Feb 01 / 99.120 1,137
Japanese Government Bond
20,000,000 Jun 00 / 110.430 20
Japanese Yen
50,000 Aug 00 / 115.800 10
100,000 Aug 00 / 125.000 -
50,000 Sept 00 / 115.000 35
60,000 Nov 00 / 105.000 831
80,000 Jan 01 / 68.750 598
50,000 Feb 01 / 150.000 1
50,000 Nov 01 / 120.000 367
50,000 Dec 01 / 110.250 1,004
United States Dollar
75,000 Aug 00 / 98.781 1,453
25,000 Sept 00 / 100.000 261
100,000 Oct 00 / 99.875 1,266
50,000 Dec 00 / 98.250 1,133
50,000 Jan 01 / 95.968 2,217
100,000 Feb 01 / 99.170 4,440
50,000 Feb 01 / 95.594 2,086
100,000 Feb 01 / 100.280 3,516
100,000 Mar 01 / 100.280 3,547
TOTAL CALL OPTIONS PURCHASED 29,459
(Cost $34,018)
PUT OPTIONS PURCHASED - 0.06%
Euro
50,000 Nov 00 / .970 1,400
50,000 Nov 00 / .970 1,270
Mexican Peso
20,000 Apr 01 / 10.000 410
40,000 Apr 01 / 8.250 5
United States Dollar
50,000 Oct 00 / 1.420 80
TOTAL PUT OPTIONS PURCHASED 3,165
(Cost $2,934)
FACE
AMOUNT DESCRIPTION MARKET VALUE
REPURCHASE AGREEMENT - 4.66%
$ 267,000 State Street Bank and Co.,
3.50% due 7/03/00
(Collateralized by U.S.
Treasury Bills, 12.50%
due 8/15/14 with a
value of $278,350) 267,000
(Cost $267,000)
TOTAL INVESTMENTS - 99.94% 5,721,396
(Cost $5,746,012)
Other assets less liabilities - 0.06% 3,430
TOTAL NET ASSETS - 100.00% $ 5,724,826
The identified cost of investments owned at June 30, 2000, was the same for
federal income tax and book purposes.
Net unrealized depreciation for federal income tax purposes was $23,232,
which is comprised of unrealized appreciation of $94,950 and unrealized
depreciation of $118,182.
*Face amount is reflected in local currency while market value is
reflected in U.S. Dollars.
See accompanying Notes to Financial Statements.
Money Market
Money market fund investors benefited this year from rising short-
term interest rates as the Federal Reserve worked to slow
economic activity to a sustainable, non-inflationary pace. The
Investors Mark Money Market Portfolio returned 2.93% for the
first half of 2000 versus 2.53% for the iMoneyNet Fund Average
(formerly IBC) Index.*
The pace of economic activity has decelerated after 7.3% growth
for the fourth quarter of 1999 and 5.4% growth for the first
quarter of 2000. Second quarter growth is expected to expand 4%,
closer to the Federal Reserve's sustainable target of 3% to 4%.
Inflationary pressures also remained in check despite oil prices
doubling, low unemployment and growing wage pressures.
There are early indications that the Fed's efforts are having the
desired impact of moderating economic activity. Consumer spending
has slowed from an exuberant pace as measured by lower retail
sales, fewer home sales and a decline in auto purchases. The flat
equity market over the last six months also contributed to a
cooler economy. As a result, the Fed decided to leave short-term
interest rates unchanged at their June 28 Federal Open Market
Committee meeting. The Fed increased the Federal Funds rate by 50
basis points to 6.50% at the May 15 meeting.
An investment in the Portfolio is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Although the Portfolio seeks to preserve the value of
your investment at $1.00 per share, it is possible to lose money
by investing in the Portfolio.
Standish, Ayer & Wood, Inc.
* Indices are unmanaged and not available for direct investment.
Total Return as of June 30, 2000
Since Commencement
Six Months One Year November 13, 1997
Money Market 2.72% 5.18% 5.00%
Schedule of Investments
June 30, 2000 (unaudited)
Money Market
FACE
AMOUNT DESCRIPTION MARKET VALUE
U.S.GOVERNMENT SECURITIES - 17.44%
U.S. TREASURY BILLS
$ 100,000 5.67% due 7/20/00 $ 99,701
200,000 5.815% due 8/24/00 198,255
TOTAL U.S. GOVERNMENT SECURITIES 297,956
(Cost $297,956)
U.S. GOVERNMENT SPONSORED - 80.14%
FEDERAL HOME LOAN MORTGAGE
CORPORATION DISCOUNT NOTES
250,000 6.38% due 7/11/00 249,557
275,000 6.42% due 8/01/00 273,480
225,000 6.43% due 8/18/00 223,071
FEDERAL NATIONAL MORTGAGE
ASSOCIATION DISCOUNT NOTES
100,000 5.635% due 3/02/00 99,591
175,000 6.38% due 7/05/00 174,876
350,000 6.41% due 7/20/00 348,816
TOTAL U.S. GOVERNMENT SPONSORED 1,369,391
(Cost $1,369,391)
REPURCHASE AGREEMENT - 2.98%
$ 51,000 State Street Bank and Co.,
3.50% due 7/03/00
(Collateralized by U.S.
Treasury Bills, 12.50%
due 8/15/14 with a
value of $58,600) 51,000
(Cost $51,000)
TOTAL INVESTMENTS - 100.56% 1,718,347
(Cost $1,718,347)
Other assets less liabilities - (0.56%) (9,623)
TOTAL NET ASSETS - 100.00% $ 1,708,724
The identified cost of investments owned at June 30, 2000, was the same for
federal income tax and book purposes.
See accompanying Notes to Financial Statements.
Statements of Assets and Liabilities
June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
large cap large cap mid cap
value growth equity
</CAPTION>
<S> <C> <C> <C>
ASSETS:
Investments at cost $3,142,627 $4,475,637 $2,893,258
Investments at value $2,996,860 $6,541,862 $3,182,977
Cash 2,031 279,421 -
Dividends receivable 2,157 439 2,771
Interest receivable 87 - 15
Unrealized appreciation on forward
foreign currency contracts - - -
Receivables for investments sold 47,595 - 253,022
Other receivables - - -
Total assets 3,048,730 6,821,722 3,438,785
LIABILITIES AND NET ASSETS:
Cash overdraft - - 5,689
Fees payable 2,438 4,976 2,285
Options written - - -
Unrealized depreciation on forward
foreign currency contracts - - -
Payable for fund shares redeemed - - -
Payable for investments purchased 76,937 188,704 278,464
Total liabilities 79,375 193,680 286,438
NET ASSETS $2,969,355 $6,628,042 $3,152,347
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $3,344,886 $4,098,075 $2,574,822
Accumulated undistributed (overdistributed)
net investment income 22,258 (13,598) 7,240
Accumulated undistributed net realized gain
(loss) on sale of investments
and foreign currency transactions (252,022) 477,340 280,566
Net unrealized appreciation (depreciation)
in value of investments and translation of
assets and liabilities in foreign currency (145,767) 2,066,225 289,719
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $2,969,355 $6,628,042 $3,152,347
Capital shares, $.001 par value
Authorized 500,000,000 500,000,000 500,000,000
Outstanding 334,287 327,640 254,307
NET ASSET VALUE PER SHARE $ 8.88 $ 20.23 $ 12.40
</TABLE>
See accompanying Notes to Financial Statements.
Statements of Assets and Liabilities
June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Small Cap Growth
Equity & Income Balanced
</CAPTION>
<S> <C> <C> <C>
ASSETS:
Investments at cost $3,685,732 $3,645,805 $3,350,882
Investments at value $4,556,310 $4,118,395 $3,201,983
Cash 18,796 - 23,884
Dividends receivable 169 6,813 4,228
Interest receivable 155 143 29,696
Unrealized appreciation on forward
foreign currency contracts - - -
Receivables for investments sold 60,292 23,786 27,213
Other receivables - - -
Total assets 4,635,722 4,149,137 3,287,004
LIABILITIES AND NET ASSETS:
Cash overdraft - 7,234 -
Fees payable 3,611 3,284 2,629
Options written - - -
Unrealized depreciation on forward
foreign currency contracts - - -
Payable for fund shares redeemed - - -
Payable for investments purchased 257,451 17,235 -
Total liabilities 261,062 27,753 2,629
NET ASSETS $4,374,660 $4,121,384 $3,284,375
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $2,852,740 $3,562,386 $3,269,653
Accumulated undistributed (overdistributed)
net investment income (11,043) 24,926 57,445
Accumulated undistributed net realized gain
(loss) on sale of investments
and foreign currency transactions 662,385 61,482 106,176
Net unrealized appreciation (depreciation)
in value of investments and translation of
assets and liabilities in foreign currency 870,578 472,590 (148,899)
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $4,374,660 $4,121,384 $3,284,375
Capital shares, $.001 par value
Authorized 500,000,000 500,000,000 500,000,000
Outstanding 276,560 331,288 332,618
NET ASSET VALUE PER SHARE $ 15.82 $ 12.44 $ 9.87
</TABLE>
See accompanying Notes to Financial Statements.
Statements of Assets and Liabilities
June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Intermediate Global Money
Fixed Income Fixed Income Market
</CAPTION>
<S> <C> <C> <C>
ASSETS:
Investments at cost $2,663,734 $5,746,012 $1,718,347
Investments at value $2,611,040 $5,721,396 $1,718,347
Cash 341 - 453
Dividends receivable - - -
Interest receivable 28,470 77,912 5
Unrealized appreciation on forward
foreign currency contracts - - -
Receivables for investments sold 10,147 79,998 -
Other receivables - 7,946 -
Total assets 2,649,998 5,887,252 1,718,805
LIABILITIES AND NET ASSETS:
Cash overdraft - 6,451 -
Fees payable 1,512 4,476 10,081
Options written - 36,784 -
Unrealized depreciation on forward
foreign currency contracts - 17,060 -
Payable for fund shares redeemed - - -
Payable for investments purchased 58,648 97,655 -
Total liabilities 60,160 162,426 10,081
NET ASSETS $2,589,838 $5,724,826 $1,708,724
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $2,697,945 $5,845,601 $1,708,797
Accumulated undistributed (overdistributed)
net investment income 83,185 72,965 -
Accumulated undistributed net realized gain
(loss) on sale of investments
and foreign currency transactions (138,598) (153,579) (73)
Net unrealized appreciation (depreciation)
in value of investments and translation of
assets and liabilities in foreign currency (52,694) (40,161) -
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $2,589,838 $5,724,826 $1,708,724
Capital shares, $.001 par value
Authorized 500,000,000 500,000,000 500,000,000
Outstanding 270,178 600,438 1,708,797
NET ASSET VALUE PER SHARE $ 9.59 $ 9.53 $ 1.00
</TABLE>
See accompanying Notes to Financial Statements.
Statements of Operations
Six months Ended June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
large cap large cap mid cap
value growth equity
</CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Income:
Dividends (net of foreign tax withheld) $ 34,400 $ 8,032 $ 13,998
Interest 1,220 3,742 1,311
35,620 11,774 15,309
EXPENSES (NOTE 2):
Management fees 11,828 22,553 11,513
Custody and accounting fees 1,036 1,925 8,652
Professional fees 8,371 8,371 8,371
Directors' fees 1,406 1,406 1,406
Contractholder reports 456 456 456
Other expenses 614 614 915
Total expenses before reimbursement 23,711 35,325 31,313
Less: expense reimbursement (10,349) (9,953) (18,287)
Net expenses 13,362 25,372 13,026
Net investment income (loss) 22,258 (13,598) 2,283
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
OPTIONS WRITTEN AND FOREIGN CURRENCY TRANSACTIONS:
Realized gain (loss) from:
Investment transactions (178,552) 350,719 306,776
Foreign currency transactions - - -
Option contracts written - - -
Net realized gain (loss) from investments,
options written and foreign currency
transactions (178,552) 350,719 306,776
Change in net unrealized appreciation (depreciation)
from:
Investments (20,566) 280,268 (32,662)
Options written - - -
Translation of assets and liabilities
in foreign currencies - - -
Net unrealized appreciaton (depreciation) (20,566) 280,268 (32,662)
Net gain (loss) on investments,
options written and
foreign currency transactions (199,118) 630,987 274,114
Increase (decrease) in net assets
resulting from operations $(176,860) $ 617,389 $ 276,397
</TABLE>
See accompanying Notes to Financial Statements.
Statements of Operations
Six months ended June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Small Cap Growth
Equity & Income Balanced
</CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Income:
Dividends (net of foreign tax withheld) $ 1,802 $ 36,002 $ 21,643
Interest 7,047 4,454 49,945
8,849 40,456 71,588
EXPENSES (NOTE 2):
Management fees 17,998 15,174 12,431
Custody and accounting fees 6,235 3,580 791
Professional fees 8,371 8,371 8,371
Directors' fees 1,406 1,406 1,406
Contractholder reports 456 456 456
Other expenses 614 614 1,452
Total expenses before reimbursement 35,080 29,601 24,907
Less: expense reimbursement (15,188) (12,532) (10,764)
Net expenses 19,892 17,069 14,143
Net investment income (loss) (11,043) 23,387 57,445
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
OPTIONS WRITTEN AND FOREIGN CURRENCY TRANSACTIONS:
Realized gain (loss) from:
Investment transactions 740,656 17,146 122,672
Foreign currency transactions - - -
Option contracts written - - -
Net realized gain (loss) from investments,
options written and foreign currency
transactions 740,656 17,146 122,672
Change in net unrealized appreciation (depreciation)
from:
Investments (60,924) (99,483) 81,097
Options written - - -
Translation of assets and liabilities
in foreign currencies - - -
Net unrealized appreciaton (depreciation) (60,924) (99,483) 81,097
Net gain (loss) on investments, options written and
foreign currency transactions 679,732 (82,337) 203,769
Increase (decrease) in net assets
resulting from operations $668,689 $(58,950) $261,214
</TABLE>
See accompanying Notes to Financial Statements.
Statements of Operations
Six months ended June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Intermediate Global Money
Fixed Income Fixed Income Market
</CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Income:
Dividends (net of foreign tax withheld) $ 656 $ 809 $ -
Interest 89,604 160,332 52,345
90,260 161,141 52,345
EXPENSES (NOTE 2):
Management fees 7,632 20,907 3,524
Custody and accounting fees 10,102 19,384 2,602
Professional fees 8,371 8,371 8,371
Directors' fees 1,406 1,406 1,406
Contractholder reports 456 456 456
Other expenses 2,264 5,676 747
Total expenses before reimbursement 30,231 56,200 17,106
Less: expense reimbursement (20,056) (28,158) (12,701)
Net expenses 10,175 28,042 4,405
Net investment income (loss) 80,085 133,099 47,940
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
OPTIONS WRITTEN AND FOREIGN CURRENCY TRANSACTIONS:
Realized gain (loss) from:
Investment transactions (48,433) (57,038) (31)
Foreign currency transactions - (6,739) -
Option contracts written - (8,234) -
Net realized gain (loss) from investments,
options written and foreign currency
transactions (48,433) (72,011) (31)
Change in net unrealized appreciation (depreciation)
from:
Investments 52,118 69,327 -
Options written - 60,553 -
Translation of assets and liabilities in
foreign currencies - 1,184 -
Net unrealized appreciaton (depreciation) 52,118 131,064 -
Net gain (loss) on investments,
options written and foreign currency
transactions 3,685 59,053 (31)
Increase (decrease) in net assets
resulting from operations $ 83,770 $ 192,152 $ 47,909
</TABLE>
See accompanying Notes to Financial Statements.
Statements of Changes in Net Assets
Large Cap Value
Six Months Ended
6/30/00 Year Ended
(unaudited) 12/31/99
OPERATIONS:
Net investment income (loss) $ 22,258 $ 71,117
Net realized gain (loss) from investments,
options written and foreign currency transactions (178,552) 43,613
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies (20,566) (107,418)
Net increase (decrease) in net assets
resulting from operations (176,860) 7,312
DISTRIBUTIONS TO CONTRACTHOLDERS:
Net investment income - (70,858)
Net realized gain from investment transactions - (106,447)
Total distributions to contractholders - (177,305)
CAPITAL SHARE TRANSACTIONS:*
Shares sold 75,624 339,750
Reinvested distributions - 177,305
75,624 517,055
Shares repurchased (122,131) (380,023)
Net increase from capital share transactions (46,507) 137,032
Net increase (decrease) in net assets (223,367) (32,961)
NET ASSETS:
Beginning of period 3,192,722 3,225,683
End of period $2,969,355 $3,192,722
Undistributed (overdistributed) net investment
income at end of period $ 22,258 $ -
* Fund share transactions:
Shares sold 8,531 32,458
Reinvested distributions - 19,024
8,531 51,482
Shares repurchased (13,899) (38,400)
Net increase in fund shares (5,368) 13,082
See accompanying Notes to Financial Statements.
Statements of Changes in Net Assets
Large Cap Growth
Six Months Ended
6/30/00 Year Ended
(unaudited) 12/31/99
OPERATIONS:
Net investment income (loss) $ (13,598) $ (8,337)
Net realized gain (loss) from investments,
options written and foreign currency transactions 350,719 243,944
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies 280,268 961,190
Net increase (decrease) in net assets
resulting from operations 617,389 1,196,797
DISTRIBUTIONS TO CONTRACTHOLDERS:
Net investment income - -
Net realized gain from investment transactions - -
Total distributions to contractholders - -
CAPITAL SHARE TRANSACTIONS:*
Shares sold 1,460,809 691,561
Reinvested distributions - -
1,460,809 691,561
Shares repurchased (58,271) (273,386)
Net increase from capital share transactions 1,402,538 418,175
Net increase (decrease) in net assets 2,019,927 1,614,972
NET ASSETS:
Beginning of period 4,608,115 2,993,143
End of period $6,628,042 $4,608,115
Undistributed (overdistributed) net investment
income at end of period $ (13,598) $ -
*Fund share transactions:
Shares sold 75,094 46,743
Reinvested distributions - -
75,094 46,743
Shares repurchased (2,971) (16,078)
Net increase in fund shares 72,123 30,665
See accompanying Notes to Financial Statements.
Statements of Changes in Net Assets
Mid Cap Equity
Six Months Ended
6/30/00 Year Ended
(unaudited) 12/31/99
OPERATIONS:
Net investment income (loss) $ 2,283 $ 9,510
Net realized gain (loss) from investments,
options written and foreign currency transactions 306,776 41,765
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies (32,662) 16,246
Net increase (decrease) in net assets
resulting from operations 276,397 67,521
DISTRIBUTIONS TO CONTRACTHOLDERS:
Net investment income - (6,561)
Net realized gain from investment transactions - (8,020)
Total distributions to contractholders - (14,581)
CAPITAL SHARE TRANSACTIONS:*
Shares sold 140,698 240,982
Reinvested distributions - 14,581
140,698 255,563
Shares repurchased (26,515) (14,350)
Net increase from capital share transactions 114,183 241,213
Net increase (decrease) in net assets 390,580 294,153
NET ASSETS:
Beginning of period 2,761,767 2,467,614
End of period $3,152,347 $2,761,767
Undistributed (overdistributed) net investment
income at end of period $ 7,240 $ 4,957
*Fund share transactions:
Shares sold 12,190 22,359
Reinvested distributions - 1,304
12,190 23,663
Shares repurchased (2,203) (1,357)
Net increase in fund shares 9,987 22,306
See accompanying Notes to Financial Statements.
Statements of Changes in Net Assets
Small Cap Equity
Six Months Ended
6/30/00 Year Ended
(unaudited) 12/31/99
OPERATIONS:
Net investment income (loss) $ (11,043) $(12,679)
Net realized gain (loss) from investments,
options written and foreign currency transactions 740,656 500,893
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies (60,924) 713,163
Net increase (decrease) in net assets
resulting from operations 668,689 1,201,377
DISTRIBUTIONS TO CONTRACTHOLDERS:
Net investment income - -
Net realized gain from investment transactions - -
Total distributions to contractholders - -
CAPITAL SHARE TRANSACTIONS:*
Shares sold 553,288 220,277
Reinvested distributions - -
553,288 220,277
Shares repurchased (38,962) (16,292)
Net increase from capital share transactions 514,326 203,985
Net increase (decrease) in net assets 1,183,015 1,405,362
NET ASSETS:
Beginning of period 3,191,645 1,786,283
End of period $4,374,660 $3,191,645
Undistributed (overdistributed) net investment
income at end of period $ (11,043) $ -
*Fund share transactions:
Shares sold 37,545 23,943
Reinvested distributions - -
37,545 23,943
Shares repurchased (2,811) (1,642)
Net increase in fund shares 34,734 22,301
See accompanying Notes to Financial Statements.
Statements of Changes in Net Assets
Growth & Income
Six Months Ended
6/30/00 Year Ended
(unaudited) 12/31/99
OPERATIONS:
Net investment income $ 23,387 $ 28,837
Net realized gain (loss) from investments,
options written and foreign currency transactions 17,146 295,605
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies (99,483) 157,639
Net increase (decrease) in net assets
resulting from operations (58,950) 482,081
DISTRIBUTIONS TO CONTRACTHOLDERS:
Net investment income - (29,168)
Net realized gain from investment transactions - (179,051)
Total distributions to contractholders - (208,219)
CAPITAL SHARE TRANSACTIONS:*
Shares sold 589,323 410,275
Reinvested distributions - 208,219
589,323 618,494
Shares repurchased (42,511) (24,163)
Net increase from capital share transactions 546,812 594,331
Net increase in net assets 487,862 868,193
NET ASSETS:
Beginning of period 3,633,522 2,765,329
End of period $4,121,384 $3,633,522
Undistributed (overdistributed) net investment
income at end of period $ 24,926 $ 1,539
* Fund share transactions:
Shares sold 48,030 32,130
Reinvested distributions - 16,631
48,030 48,761
Shares repurchased (3,437) (1,902)
Net increase in fund shares 44,593 46,859
See accompanying Notes to Financial Statements.
Statements of Changes in Net Assets
Balanced
Six Months Ended
6/30/00 Year Ended
(unaudited) 12/31/99
OPERATIONS:
Net investment income $ 57,445 $139,631
Net realized gain (loss) from investments,
options written and foreign currency transactions 122,672 (1,822)
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies 81,097 83,757
Net increase (decrease) in net assets
resulting from operations 261,214 221,566
DISTRIBUTIONS TO CONTRACTHOLDERS:
Net investment income - (139,144)
Net realized gain from investment transactions - (23,809)
Total distributions to contractholders - (162,953)
CAPITAL SHARE TRANSACTIONS:*
Shares sold 77,900 258,313
Reinvested distributions - 162,953
77,900 421,266
Shares repurchased (25,378) (152,797)
Net increase from capital share transactions 52,522 268,469
Net increase in net assets 313,736 327,082
NET ASSETS:
Beginning of period 2,970,639 2,643,557
End of period $3,284,375 $2,970,639
Undistributed (overdistributed) net investment
income at end of period $ 57,445 $ -
*Fund share transactions:
Shares sold 8,036 27,668
Reinvested distributions - 18,006
8,036 45,674
Shares repurchased (2,632) (16,248)
Net increase in fund shares 5,404 29,426
See accompanying Notes to Financial Statements.
Statements of Changes in Net Assets
Intermediate Fixed Income
Six Months Ended
6/30/00 Year Ended
(unaudited) 12/31/99
OPERATIONS:
Net investment income $ 80,085 $152,801
Net realized gain (loss) from investments,
options written and foreign currency transactions (48,433) (89,948)
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies 52,118 (68,697)
Net increase (decrease) in net assets
resulting from operations 83,770 (5,844)
DISTRIBUTIONS TO CONTRACTHOLDERS:
Net investment income - (152,919)
Net realized gain from investment transactions - (14,064)
Total distributions to contractholders - (166,983)
CAPITAL SHARE TRANSACTIONS:*
Shares sold 78,356 266,136
Reinvested distributions - 166,983
78,356 433,119
Shares repurchased (111,955) (136,055)
Net increase from capital share transactions (33,599) 297,064
Net increase in net assets 50,171 124,237
NET ASSETS:
Beginning of period 2,539,667 2,415,430
End of period $2,589,838 $2,539,667
Undistributed (overdistributed) net investment
income at end of period $ 83,185 $ 3,100
*Fund share transactions:
Shares sold 8,391 26,735
Reinvested distributions - 17,955
8,391 44,690
Shares repurchased (11,886) (13,670)
Net increase in fund shares (3,495) 31,020
See accompanying Notes to Financial Statements.
Statements of Changes in Net Assets
Global Fixed Income
Six Months Ended
6/30/00 Year Ended
(unaudited) 12/31/99
OPERATIONS:
Net investment income $ 133,099 $285,559
Net realized gain (loss) from investments,
options written and foreign currency transactions (72,011) (115,510)
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies 131,064 (184,434)
Net increase (decrease) in net assets
resulting from operations 192,152 (14,385)
DISTRIBUTIONS TO CONTRACTHOLDERS:
Net investment income - (381,181)
Net realized gain from investment transactions - -
Total distributions to contractholders - (381,181)
CAPITAL SHARE TRANSACTIONS:*
Shares sold 17,531 50,185
Reinvested distributions - 381,181
17,531 431,366
Shares repurchased (840) (2,433)
Net increase from capital share transactions 16,691 428,933
Net increase in net assets 208,843 33,367
NET ASSETS:
Beginning of period 5,515,983 5,482,616
End of period $5,724,826 $5,515,983
Undistributed (overdistributed) net investment
income at end of period $ 72,965 $ (60,134)
*Fund share transactions:
Shares sold 1,902 5,070
Reinvested distributions - 41,343
1,902 46,413
Shares repurchased (89) (247)
Net increase in fund shares 1,813 46,166
See accompanying Notes to Financial Statements.
Statements of Changes in Net Assets
Operations
Six Months Ended
6/30/00 Year Ended
(unaudited) 12/31/99
OPERATIONS:
Net investment income $ 47,940 $ 56,928
Net realized gain (loss) from investments,
options written and foreign currency transactions (31) (42)
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies - -
Net increase (decrease) in net assets
resulting from operations 47,909 56,886
DISTRIBUTIONS TO CONTRACTHOLDERS:
Net investment income (47,940) (56,928)
Net realized gain from investment transactions - -
Total distributions to contractholders (47,940) (56,928)
CAPITAL SHARE TRANSACTIONS:*
Shares sold 3,973,470 2,417,415
Reinvested distributions - 56,748
3,973,470 2,474,163
Shares repurchased (3,865,874) (2,143,409)
Net increase from capital share transactions 107,596 330,754
Net increase in net assets 107,565 330,712
NET ASSETS:
Beginning of period 1,601,159 1,270,447
End of period $1,708,724 $1,601,159
Undistributed (overdistributed) net investment
income at end of period $ - $ -
*Fund share transactions:
Shares sold 3,973,470 2,417,415
Reinvested distributions - 56,748
3,973,470 2,474,163
Shares repurchased (3,865,874) (2,143,409)
Net increase in fund shares 107,596 330,754
See accompanying Notes to Financial Statements.
Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES:
Investors Mark Series Fund (the Fund) is registered under the
Investment Company Act of 1940 (as amended) as a diversified open-
end management investment company of the series type. The Fund is
required to account for the assets of each series separately and
to allocate general liabilities of the Fund to each series based
upon the net asset value of each series. Shares of the Fund are
distributed to a variable annuity separate account of Business
Men's Assurance Company of America. The following is a summary of
significant accounting policies consistently followed by the Fund
in the preparation of its financial statements.
A. INVESTMENT VALUATION - Securities traded on U.S. or foreign
securities exchanges or included in a national market system are
valued at the last quoted sales price; securities for which there
were no sales reported are valued at the mean between the bid and
ask prices; exchange listed options are valued at the last sales
price; bonds and other securities for which market quotations are
not readily available are valued at fair value according to
methods selected in good faith by the Board of Directors.
Securities with maturities of 60 days or less when acquired or
subsequently within 60 days of maturity are valued at amortized
cost, which approximates market value.
Generally, trading in foreign securities markets is substantially
completed each day at various times prior to the close of the New
York Stock Exchange. The values of foreign securities are
determined as of the close of such foreign markets or the close
of the New York Stock Exchange, if earlier. All investments
quoted in foreign currency are valued in U.S. dollars on the
basis of the foreign currency exchange rates prevailing at the
close of business. Investment in foreign securities may involve
risks not present in domestic investments. Since foreign
securities may be denominated in a foreign currency and involve
settlement and pay interest or dividends in foreign currencies,
changes in the relationship of these foreign currencies to the
U.S. dollar can significantly affect the value of the investments
and earnings of the Fund. Foreign investments may also subject
the Fund to foreign government exchange restrictions,
expropriation, taxation or other political, social or economic
developments, all of which could affect the market and/or credit
risk of the investments.
Pursuant to Rule 2a-7 of the Investment Company Act of 1940 (as
amended), securities in the Money Market Portfolio are valued at
amortized cost, which approximates market value.
B. OPTIONS - When a call or put option is written, an amount
equal to the premium received is recorded as a liability. The
liability is marked-to-market daily to reflect the current market
value of the option written. When a written option expires, a
gain is realized in the amount of the premium originally
received. If a closing purchase contract is entered into, a gain
or loss is realized in the amount of the original premium less
the cost of the closing transaction. If a written call is
exercised, a gain or loss is realized from the sale of the
underlying security, and the proceeds from such sale are
increased by the premium originally received. If a written put
option is exercised, the amount of the premium originally
received reduces the cost of the security which is purchased upon
exercise of the option.
Purchased options are recorded as investments and marked-to-
market daily to reflect the current market value of the option
contract. If a purchased option expires, a loss is realized in
the amount of the cost of the option. If a closing transaction is
entered into, a gain or loss is realized, to the extent that the
proceeds from the sale are greater or less than the cost of the
option. If a put option is exercised, a gain or loss is realized
from the sale of the underlying security by adjusting the
proceeds from such sale by the amount of the premium originally
paid. If a call option is exercised, the cost of the security
purchased upon exercise is increased by the premium originally paid.
C. FOREIGN CURRENCY TRANSLATION - All assets and liabilities
expressed in foreign currencies are converted into U.S. dollars
based on current exchange rates at the end of the period.
Purchases and sales of investments in securities, dividend and
interest income, and certain expenses are
translated at the rates of exchange prevailing on the respective
dates of such transactions. The Portfolios of the Fund do not
isolate that portion of the results of operations resulting from
changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities
held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
D. FORWARD FOREIGN CURRENCY CONTRACTS - The Global Fixed Income
Portfolio may enter into forward foreign currency contracts as a
way of managing foreign exchange rate risk. The portfolio may
enter into these contracts to fix the U.S. dollar value of a
security that it has agreed to buy or sell for the period between
the date the trade was entered into and the date the security is
delivered and paid for. These contracts may also be used to hedge
the U.S. dollar value of securities owned which are denominated
in foreign currencies.
Forward foreign currency contracts are valued each day at the
close of the New York Stock Exchange at the forward rate, and are
marked-to-market daily. The change in market value is recorded as
an unrealized gain or loss. When the contract is closed, a
realized gain or loss equal to the difference between the value
of the contract at the time it was opened and closed is recorded.
The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the securities, but it
does establish a rate of exchange that can be achieved in the
future. Although forward foreign currency contracts limit the
risk of loss due to a decline in the value of the hedged
currency, they also limit any potential gain that might result
should the value of the currency increase. These contracts
involve market risk in excess of the amount reflected in the
Statement of Assets and Liabilities. The face or contract amount
in U.S. dollars reflects the total exposure the portfolio has in
that particular currency contract. In addition, there could be
exposure to risks (limited to the amount of unrealized gains) if
the counterparties to the contracts are unable to meet the terms
of their contracts.
E. EXPENSE LIMITATIONS - Investors Mark Advisor, LLC. (the
Advisor), has voluntarily agreed to pay certain operating
expenses in an amount that limits the total operating expenses of
the portfolios to an annual rate of .50% of average daily net
assets for the Money Market Portfolio; .80% of average daily net
assets for the Intermediate Fixed Income Portfolio; .90% of the
average daily net assets for Mid Cap Equity, Large Cap Value,
Large Cap Growth, Growth & Income and Balanced Portfolios; 1.00%
of average daily net assets for the Global Fixed Income Portfolio
and 1.05% of average daily net assets for the Small Cap Equity
Portfolio. This expense limitation may be modified or terminated
at the discretion of the Advisor at any time without notice to
contractholders. The Advisor may be reimbursed by the Portfolios
for such expenses at a later date. This may be done only if such
reimbursement does not cause a Portfolio's expenses to exceed the
expense cap percentage shown above.
F. DISTRIBUTIONS TO CONTRACTHOLDERS - Distributions to
contractholders are recorded on the ex-dividend date. The
character of distributions made during the year from net
investment income or net realized gains may differ from their
ultimate characterization for federal income tax purposes. These
differences are primarily due to differing treatments for
expiration of net operating losses and recharacterization of
foreign currency gains and losses.
G. FEDERAL INCOME TAXES - The Fund complied with the requirements
of the Internal Revenue Code applicable to regulated investment
companies and therefore, no provision for federal or state tax is
required. For the year ended December 31, 1999 for federal income
tax purposes, the Large Cap Value, Growth & Income, and
Intermediate Fixed Income Portfolios has designated capital gain
dividends of $82,080, $179,051, and $7,416, respectively. As of
December 31, 1999, the Mid Cap Equity, Small Cap Equity,
Balanced, Intermediate Fixed Income, Global Fixed Income, and
Money Market Portfolios have an accumulated net realized loss on
sales of investments for federal income tax purposes of $26,210,
$76,243, $16,496, $62,906, $28,625, and $42, respectively,
expiring in 2007, 2006, 2007, 2007, 2007, and 2007, respectively,
which are available to offset future taxable gains.
H. SECURITY TRANSACTIONS AND INVESTMENT INCOME - Security
transactions are accounted for on the date the securities are
purchased or sold. Dividend income and distributions to
contractholders are recorded on the ex-dividend date. Realized
gains and losses from investment transactions are determined on
the identified cost basis.
I. USE OF ESTIMATES - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying
notes. Actual results could differ from such estimates.
2. ADVISORY FEES
Advisory fees are paid to the Advisor based on an annual
percentage of average daily net assets. Listed below are advisory
fees as a percentage of average daily net assets.
% of Net Assets
Large Cap Value 0.80%
Large Cap Growth 0.80%
Mid Cap Equity 0.80%
Small Cap Equity 0.95%
Growth & Income 0.80%
Balanced 0.80%
Intermediate Fixed Income 0.60%
Global Fixed Income 0.75%
Money Market 0.40%
3. INVESTMENT TRANSACTIONS
Investment transactions for the period ended June 30, 2000,
(excluding maturities of short-term commercial notes and
repurchase agreements) are as follows:
Proceeds
Portfolio Purchases from sales
Large Cap Value $1,004,755 $ 920,380
Large Cap Growth 3,085,221 2,053,400
Mid Cap Equity 1,905,044 1,867,404
Small Cap Equity 2,979,607 2,528,696
Growth & Income 2,856,147 1,315,699
Balanced 1,429,383 1,327,660
Intermediate Fixed Income 1,808,667 1,662,874
Global Fixed Income 7,528,818 7,291,744
4. OPTIONS WRITTEN
The following options written were outstanding for the Global Fixed Income
Portfolio as of June 30, 2000:
PUT OPTIONS WRITTEN
Expiration Exercise Number of Market
Issuer/Currency Date Price Contracts Value
Australian Dollar Jan-01 59.900 800 $ 1,483
Euro Sep-00 106.300 501 2,590
Euro Nov -00 89.100 600 407
Euro Dec-01 90.000 500 2,151
German Deutschemark Jul-00 91.080 500 196
German Deutschemark Nov-00 91.670 500 134
United States Dollar Jul-00 113.750 973 7,342
United States Dollar Jul-00 122.000 640 9,792
United States Dollar Aug-00 94.250 750 258
United States Dollar Sep-00 95.120 530 124
United States Dollar Sep-00 94.340 250 28
United States Dollar Sep-00 94.100 500 54
United States Dollar Oct-00 100.240 1,000 553
United States Dollar Oct-00 94.000 1,000 219
United States Dollar Dec-00 93.620 500 148
United States Dollar Jan-01 91.460 500 53
United States Dollar Feb-01 106.500 319 896
United States Dollar Feb-01 100.000 1,000 1,016
United States Dollar Feb-01 100.000 1,000 981
United States Dollar Mar-01 95.160 1,000 328
United States Dollar Apr-01 9.500 400 226
United States Dollar Apr-01 9.250 200 61
Total put options outstanding
premiums received, $32,070 $ 29,040
CALL OPTIONS WRITTEN
Expiration Exercise Number of Market
Issuer/Currency Date Price Contracts Value
British Pound Sep-00 126.700 325 $ 895
British Pound Feb-01 192.750 300 141
German Deutschemark Jan-01 104.220 1,000 288
German Deutschemark Feb-01 103.520 500 239
United States Dollar Aug-00 130.200 500 -
United States Dollar Feb-01 106.050 1,000 1,172
United States Dollar Mar-01 106.080 1,000 1,172
United States Dollar Aug-00 103.310 750 293
United States Dollar Dec-00 102.870 500 250
United States Dollar Jan-01 100.460 500 835
United States Dollar Feb-01 104.170 1,000 1,669
United States Dollar Feb-01 100.030 500 789
Total call options outstanding
premiums received, $6,098 $ 7,743
Transactions in options written for the Global Fixed Income Portfolio for
the period ended June 30, 2000, were as follows:
Number of premium
contracts amount
PUT OPTIONS WRITTEN
Balance at December 31, 1999 214,977 $ 60,008
Opened 13,920 20,232
Expired (650) (780)
Closed (214,285) (47,390)
Balance at June 30, 2000 13,962 $ 32,070
CALL OPTIONS WRITTEN
Balance at December 31, 1999 8,924 $ 8,594
Opened 9,400 6,793
Expired (1,500) (2,392)
Closed (8,949) (6,897)
Balance at June 30, 2000 7,875 $ 6,098
5. FORWARD FOREIGN CURRENCY CONTRACTS
Following is a summary of forward foreign currency contracts that were
outstanding at June 30, 2000 for the Global Fixed Income Portfolio:
CONTRACTS TO SELL CURRENCY:
Foreign Amount U.S. Net
Currency To Be $ Value Unrealized
Settlement To Be Received In As Of Appreciation
Date Delivered U.S. $ 6/30/00 Depreciation
Argentine Peso 7/10/00 - 4/17/02 53,321 $ 50,136 $ 53,348 $ (3,212)
Canadian Dollar 9/20/00 320,000 217,031 216,553 478
Danish Krone 9/20/00 350,000 44,637 44,890 (253)
Euro 6/30/00 - 8/22/01 1,482,752 1,422,209 1,421,185 1,024
British Pound 9/20/00 338,000 508,508 513,321 (4,813)
Hong Kong Dollar 8/13/01 439,578 55,585 56,415 (830)
Japanese Yen 9/20/00 - 5/17/01 107,220,000 1,022,276 1,029,045 (6,769)
New Zealand Dollar 9/20/00 10,000 4,786 4,692 94
Poland Zlotty 7/24/00 82,198 19,506 18,768 738
Swedish Krona 9/20/00 690,000 80,584 78,779 1,805
Singapore Dollar 9/27/00 135,000 78,669 78,878 (209)
Thai Bat 9/11/00 2,029,000 50,000 51,887 (1,887)
$3,553,927 $3,567,761 $ (13,834)
CONTRACTS TO BUY CURRENCY:
Foreign Amount U.S. Net
Currency To Be $ Value Unrealized
Settlement To Be Paid In As Of Appreciation
Date Received U.S. $ 6/30/00 Depreciation
Argentine Peso 9/7/00 - 4/17/02 51,275 $ 49,830 $ 51,301 $ 1,471
Canadian Dollar 9/27/00 155,000 105,610 104,907 (703)
Euro 7/6/00 - 9/20/00 209,844 199,335 200,980 1,645
Hungary Forint 8/8/00 2,942,136 10,002 10,788 786
Japanese Yen 7/31/00 - 9/27/00 37,010,000 356,502 352,934 (3,568)
Poland Zlotty 7/24/00 82,198 20,000 18,768 (1,232)
Slovakia Koruna 9/11/00 578,163 13,900 12,994 (906)
Thai Bat 9/11/00 949,500 25,000 24,281 (719)
$ 780,179 $ 776,953 $ (3,226)
Financial Highlights
Condensed data for a share of capital stock
outstanding throughout each period.
<TABLE>
<CAPTION>
LARGE CAP VALUE
FOR THE SIX For The Period
MONTH PERIOD Years Ended From 11/13/97
ENDED 6/30/00 DECEMBER 31, (Commencement)
(UNAUDITED) 1999 1998 TO 12/31/97
</CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.40 $ 9.88 $ 9.69 $ 10.00
Net asset value, beginning of period $ 9.40 $ 9.88 $ 9.69 $ 10.00
Income from investment operations:
Net investment income (loss) 0.07 0.22 0.13 0.02
Net gains (losses) on securities
(both realized and unrealized) (0.59) (0.15) 0.35 (0.31)
Total income (loss) from
investment operations (0.52) 0.07 0.48 (0.29)
Less distributions:
Dividends from net
investment income - (0.22) (0.14) (0.02)
Distributions from capital gains - (0.33) (0.15) -
Total distributions - (0.55) (0.29) (0.02)
Net asset value, end of period $ 8.88 $ 9.40 $ 9.88 $ 9.69
Total return* (5.53%) 0.79% 5.03% (2.86%)
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 2,969 $ 3,193 $ 3,226 $ 2,444
Ratio of expenses to average
net assets** 0.90% 0.90% 0.90% 0.90%
Ratio of net investment income (loss)
to average net assets** 1.50% 2.00% 1.44% 2.21%
Ratio of expenses to average net assets
before voluntary expense
reimbursement ** 1.59% 1.49% 1.55% 2.78%
Ratio of net investment income (loss)
to average net assets before voluntary
expense reimbursement ** 0.80% 1.41% 0.79% 0.33%
Portfolio turnover rate 28% 23% 18% -
*Total return not annualized for periods less than one full year
**Annualized for periods less than one full year
See accompanying Notes to Financial Statements.
Financial Highlights
Condensed data for a share of capital stock
outstanding throughout each period.
LARGE CAP Growth
FOR THE SIX For The Period
MONTH PERIOD Years Ended From 11/13/97
ENDED 6/30/00 DECEMBER 31, (Commencement)
(UNAUDITED) 1999 1998 to 12/31/97
Net asset value, beginning of period $ 18.03 $ 13.31 $ 10.71 $ 10.00
Income from investment operations:
Net investment income (loss) (0.04) (0.03) - -
Net gains (losses) on securities
(both realized and unrealized) 2.24 4.75 2.61 0.71
Total income (loss) from
investment operations 2.20 4.72 2.61 0.71
Less distributions:
Dividends from net investment income - - (0.01) -
Distributions from capital gains - - - -
Total distributions - - (0.01) -
Net asset value, end of period $ 20.23 $ 18.03 $ 13.31 $ 10.71
Total return* 12.20% 35.46% 24.35% 7.10%
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 6,628 $ 4,608 $ 2,993 $ 2,157
Ratio of expenses to average
net assets** 0.90% 0.90% 0.90% 0.90%
Ratio of net investment income (loss)
to average net assets** (0.48%) (0.23%) (0.02%) 0.33%
Ratio of expenses to average net assets
before voluntary expense
reimbursement ** 1.25% 1.49% 1.66% 3.19%
Ratio of net investment income (loss)
to average net assets before voluntary
expense reimbursement ** (0.83%) (0.82%) (0.78%) (1.96%)
Portfolio turnover rate 37% 72% 49% -
*Total return not annualized for periods less than one full year
**Annualized for periods less than one full year
See accompanying Notes to Financial Statements.
Financial Highlights
Condensed data for a share of capital stock
outstanding throughout each period.
</TABLE>
<TABLE>
<CAPTION>
Mid Cap Equity
FOR THE SIX For The Period
MONTH PERIOD Years Ended From 11/13/97
ENDED 6/30/00 DECEMBER 31, (Commencement)
(UNAUDITED) 1999 1998 TO 12/31/97
</CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.30 $ 11.11 $ 10.49 $ 10.00
Income from investment operations:
Net investment income (loss) 0.01 0.04 0.04 0.02
Net gains (losses) on securities
(both realized and unrealized) 1.09 0.21 0.69 0.49
Total income (loss) from
investment operations 1.10 0.25 0.73 0.51
Less distributions:
Dividends from net investment income - (0.03) (0.03) (0.02)
Distributions from capital gains - (0.03) (0.08) -
Total distributions - (0.06) (0.11) (0.02)
Net asset value, end of period $ 12.40 $ 11.30 $ 11.11 $ 10.49
Total return* 9.74% 2.26% 7.03% 5.07%
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 3,152 $ 2,762 $ 2,468 $ 2,119
Ratio of expenses to average
net assets** 0.90% 0.90% 0.90% 0.90%
Ratio of net investment income (loss)
to average net assets** 0.16% 0.38% 0.38% 1.34%
Ratio of expenses to average net assets
before voluntary expense
reimbursement ** 2.16% 2.33% 2.38% 3.40%
Ratio of net investment income (loss)
to average net assets before voluntary
expense reimbursement ** (1.11%) (1.05%) (1.10%) (1.16%)
Portfolio turnover rate 66% 97% 166% 13%
</TABLE>
*Total return not annualized for periods less than one full year
**Annualized for periods less than one full year
See accompanying Notes to Financial Statements.
Financial Highlights
Condensed data for a share of capital stock
outstanding throughout each period.
<TABLE>
<CAPTION>
Small Cap Equity
FOR THE SIX For The Period
MONTH PERIOD Years Ended From 11/13/97
ENDED 6/30/00 DECEMBER 31, (Commencement)
(UNAUDITED) 1999 1998 to 12/31/97
</CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.20 $ 8.14 $ 9.72 $ 10.00
Income from investment operations:
Net investment income (loss) (0.04) (0.05) (0.05) -
Net gains (losses) on securities
(both realized and unrealized) 2.66 5.11 (1.53) (0.28)
Total income (loss) from
investment operations 2.62 5.06 (1.58) (0.28)
Less distributions:
Dividends from net investment income - - - -
Distributions from capital gains - - - -
Total distributions - - - -
Net asset value, end of period $ 15.82 $ 13.20 $ 8.14 $ 9.72
Total return* 19.85% 62.16% (16.22%) (2.80%)
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 4,375 $ 3,192 $ 1,786 $ 1,960
Ratio of expenses to average
net assets** 1.05% 1.05% 1.05% 1.05%
Ratio of net investment income (loss)
to average net assets** (0.58%) (0.61%) (0.52%) 0.29%
Ratio of expenses to average net
assets before voluntary expense
reimbursement ** 1.85% 2.53% 2.29% 3.49%
Ratio of net investment income (loss)
to average net assets before voluntary
expense reimbursement ** (1.38%) (2.09%) (1.76%) (2.15%)
Portfolio turnover rate 74% 123% 132% 8%
</TABLE>
*Total return not annualized for periods less than one full year
**Annualized for periods less than one full year
See accompanying Notes to Financial Statements.
Financial Highlights
Condensed data for a share of capital stock
outstanding throughout each period.
<TABLE>
<CAPTION>
Growth & Income
FOR THE SIX For The Period
MONTH PERIOD Years Ended From 11/13/97
ENDED 6/30/00 DECEMBER 31, (Commencement)
(UNAUDITED) 1999 1998 to 12/31/97
</CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.67 $ 11.53 $ 10.41 $ 10.00
Income from investment operations:
Net investment income (loss) 0.07 0.11 0.13 0.02
Net gains (losses) on securities
(both realized and unrealized) (0.30) 1.80 1.12 0.40
Total income (loss) from
investment operations (0.23) 1.91 1.25 0.42
Less distributions:
Dividends from net investment income - (0.11) (0.13) (0.01)
Distributions from capital gains - (0.66) - -
Total distributions - (0.77) (0.13) (0.01)
Net asset value, end of period $ 12.44 $ 12.67 $ 11.53 $ 10.41
Total return* (1.82%) 16.65% 12.03% 4.25%
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 4,121 $ 3,634 $ 2,765 $ 2,101
Ratio of expenses to average
net assets** 0.90% 0.90% 0.90% 0.90%
Ratio of net investment income (loss)
to average net assets** 1.23% 0.92% 1.23% 1.50%
Ratio of expenses to average net assets
before voluntary expense
reimbursement ** 1.56% 1.67% 1.75% 3.19%
Ratio of net investment income (loss)
to average net assets before voluntary
expense reimbursement ** 0.57% 0.15% 0.38% (0.79%)
Portfolio turnover rate 25% 66% 76% -
</TABLE>
*Total return not annualized for periods less than one full year
**Annualized for periods less than one full year
See accompanying Notes to Financial Statements.
Financial Highlights
Condensed data for a share of capital stock
outstanding throughout each period.
<TABLE>
<CAPTION>
Balanced
FOR THE SIX For The Period
MONTH PERIOD Years Ended From 11/13/97
ENDED 6/30/00 DECEMBER 31, (Commencement)
(UNAUDITED) 1999 1998 to 12/31/97
</CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.08 $ 8.88 $ 9.96 $ 10.00
Income from investment operations:
Net investment income (loss) 0.17 0.45 0.47 0.06
Net gains (losses) on securities
(both realized and unrealized) 0.62 0.28 (1.08) (0.04)
Total income (loss) from
investment operations 0.79 0.73 (0.61) 0.02
Less distributions:
Dividends from net investment income - (0.45) (0.47) (0.06)
Distributions from capital gains - (0.08) - -
Total distributions - (0.53) (0.47) (0.06)
Net asset value, end of period $ 9.87 $ 9.08 $ 8.88 $ 9.96
Total return* 8.70% 8.21% (6.03%) 0.18%
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 3,284 $ 2,971 $ 2,644 $ 2,518
Ratio of expenses to average
net assets** 0.90% 0.90% 0.90% 0.90%
Ratio of net investment income (loss)
to average net assets** 3.66% 4.88% 5.00% 4.78%
Ratio of expenses to average net assets
before voluntary expense
reimbursement ** 1.58% 1.72% 1.59% 2.78%
Ratio of net investment income (loss)
to average net assets before voluntary
expense reimbursement ** 2.97% 4.06% 4.31% 2.90%
Portfolio turnover rate 29% 43% 73% -
</TABLE>
*Total return not annualized for periods less than one full year
**Annualized for periods less than one full year
See accompanying Notes to Financial Statements.
Financial Highlights
Condensed data for a share of capital stock
outstanding throughout each period.
<TABLE>
<CAPTION>
Intermediate Fixed
FOR THE SIX For The Period
MONTH PERIOD Years Ended From 11/13/97
ENDED 6/30/00 DECEMBER 31, (Commencement)
(UNAUDITED) 1999 1998 to 12/31/97
</CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.28 $ 9.95 $ 10.06 $ 10.00
Income from investment operations:
Net investment income 0.30 0.60 0.57 0.07
Net gains (losses) on securities
(both realized and unrealized) 0.01 (0.62) (0.05) 0.06
Total income (loss) from
investment operations 0.31 (0.02) 0.52 0.13
Less distributions:
Dividends from net investment income - (0.60) (0.56) (0.07)
Dividends from capital gains - (0.05) (0.07) -
Tax return of capital - - - -
Total distributions - (0.65) (0.63) (0.07)
Net asset value, end of period $ 9.59 $ 9.28 $ 9.95 $ 10.06
Total return* 3.34% (0.19%) 5.16% 1.27%
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 2,590 $ 2,540 $ 2,415 $ 2,038
Ratio of expenses to average
net assets** 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income (loss)
to average net assets** 6.26% 6.01% 5.75% 5.40%
Ratio of expenses to average
net assets before voluntary
expense reimbursement ** 2.36% 2.25% 1.97% 3.09%
Ratio of net investment income (loss)
to average net assets before voluntary
expense reimbursement** 4.69% 4.56% 4.58% 3.11%
Portfolio turnover rate 69% 147% 132% 39%
</TABLE>
Total return not annualized for periods less than one full year
Annualized for periods less than one full year
See accompanying Notes to Financial Statements.
Financial Highlights
Condensed data for a share of capital stock
outstanding throughout each period.
<TABLE>
<CAPTION>
Global Fixed Income
FOR THE SIX For The Period
MONTH PERIOD Years Ended From 11/13/97
ENDED 6/30/00 DECEMBER 31, (Commencement)
(UNAUDITED) 1999 1998 to 12/31/97
</CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.21 $ 9.92 $ 10.09 $ 10.00
Income from investment operations:
Net investment income 0.22 0.51 0.84 0.09
Net gains (losses) on securities
(both realized and unrealized) 0.10 (0.54) (0.11) 0.08
Total income (loss) from
investment operations 0.32 (0.03) 0.73 0.17
Less distributions:
Dividends from net investment income - (0.68) (0.54) (0.08)
Distributions from capital gains - - (0.06) -
Tax return of capital - - (0.30) -
Total distributions - (0.68) (0.90) (0.08)
Net asset value, end of period $ 9.53 $ 9.21 $ 9.92 $ 10.09
Total return* 3.48% (0.27%) 7.23% 1.70%
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 5,725 $ 5,516 $ 5,483 $ 5,099
Ratio of expenses to average
net assets** 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income (loss)
to average net assets** 4.75% 5.17% 5.40% 5.29%
Ratio of expenses to average net assets
before voluntary expense
reimbursement ** 2.00% 1.67% 1.47% 2.28%
Ratio of net investment income (loss)
to average net assets before voluntary
expense reimbursement ** 3.74% 4.50% 4.93% 4.01%
Portfolio turnover rate 160% 167% 185% 25%
</TABLE>
*Total return not annualized for periods less than one full year
**Annualized for periods less than one full year
See accompanying Notes to Financial Statements.
Financial Highlights
Condensed data for a share of capital stock
outstanding throughout each period.
<TABLE>
<CAPTION>
Money Market
FOR THE SIX For The Period
MONTH PERIOD Years Ended From 11/13/97
ENDED 6/30/00 DECEMBER 31, (Commencement)
(UNAUDITED) 1999 1998 to 12/31/97
</CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income 0.05 0.05 0.05 0.01
Net gains (losses) on securities
(both realized and unrealized) - - - -
Total income (loss) from
investment operations 0.05 0.05 0.05 0.01
Less distributions:
Dividends from net investment income (0.05) (0.05) (0.05) (0.01)
Distributions from capital gains - - - -
Tax return of capital - - - -
Total distributions (0.05) (0.05) (0.05) (0.01)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total return* 2.72% 4.60% 5.05% 0.71%
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $ 1,709 $ 1,601 $ 1,270 $ 1,019
Ratio of expenses to average
net assets** 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income (loss)
to average net assets** 5.41% 4.52% 4.93% 5.26%
Ratio of expenses to average net assets
before voluntary expense
reimbursement ** 1.93% 2.72% 2.89% 4.90%
Ratio of net investment income (loss)
to average net assets before voluntary
expense reimbursement ** 3.98% 2.30% 2.54% 0.86%
Portfolio turnover rate - - - -
</TABLE>
*Total return not annualized for periods less than one full year
**Annualized for periods less than one full year
See accompanying Notes to Financial Statements.
This report has been prepared for the information of the Contractholders of
Investors Mark Series Fund, Inc. and is not to be construed as an offering
of the shares of the Fund. Shares of the Fund are offered only by the
Prospectus, a copy of which may be obtained from Business Men's Assurance
Company of America.
