Report of Independent Accountants
To the Board of Directors of
Central Investment Fund, Inc.
We have examined management's assertion, included in the accompanying
Management Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940, that Central Investment Fund, Inc. (the
"Fund") was in compliance with the requirements of subsection (b) and (c) of
Rule 17f-2 of the Investment Company Act of 1940 ("the Act") as of
December 31, 1998 with respect to securities and similar investments reflected
in the investment account of the Fund. Management is responsible for the
Fund's compliance with those requirements. Our responsibility is to express
an opinion on management's assertion about the Fund's compliance based on our
examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and accordingly, included
examining, on a test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we considered necessary
in the circumstances. Included among our procedures were the following tests
performed as of December 31, 1998, and with respect to agreement of security
and similar investments purchases and sales, for the year ended December 31,
1998;
* Roll forward of securities held at December 31, 1998 and subsequent review
of the disposal of all securities.
* Reconciliation of all securities and investments to the books and records
of the Fund and the Custodian.
We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Fund's
compliance with specified requirements.
In our opinion, management's assertion that Central Investment Fund, Inc. was
in compliance with the requirements of subsection (b) and (c) of Rule 17f-2 of
the Investment Company Act of 1940 as of December 31, 1998, with respect to
securities and similar investments reflected in the investment account of the
Fund is fairly stated, in all material respects.
This report is intended solely for the information and use of management of
Central Investment Fund, Inc. and the Securities and Exchange Commission and
should not be used for any other purpose.
Ernst & Young, LLP
Detroit, Michigan
February 12, 1999
CENTRAL INVESTMENT FUND, INC.
Portfolio of Investments
December 31, 1998
No. of
Shares Market Value
COMMON STOCK
BUILDING AND CONSTRUCTION 1.68%
BUILDING MATERIALS
7,000 GEORGIA PACIFIC CORP 409,937.50
110,600 HOME DEPOT 6,767,337.50
25,000 MASCO CORP 718,750.00
INDUSTRIAL CHEMICALS
13,500 PPG INDUS INC 786,375.00
TOTAL BUILDING AND CONSTRUCTION $8,682,400.00
CHEMICALS AND DRUGS 15.78%
CHEMICALS
17,100 DOW CHEMICAL CO 1,555,031.25
85,600 DUPONT DENEMOURS & CO 4,542,150.00
5,900 EASTMAN CHEMICAL 264,025.00
DRUGS
115,600 ABBOT LABS 5,664,400.00
6,500 ALZA CORP CL A 339,625.00
98,200 AMERICAN HOME PRODUCTS 5,529,887.50
75,200 BRISTOL MYERS SQUIBB CO 10,062,700.00
83,900 LILLY ELI & CO 7,456,612.50
90,600 MERCK & CO., INC 13,380,487.50
97,800 PFIZER INC 12,267,787.50
38,400 PHARMACIA & UPJOHN INC 2,174,400.00
110,800 SCHERING PLOUGH 6,121,700.00
61,800 WARNER-LAMBERT 4,646,587.50
COSMETICS
20,000 AVON PRODUCTS INC 885,000.00
8,300 INTL FLAVORS & FRAGRANCES 366,756.25
HEALTH PRODUCTS/CARE
21,200 BAXTER INTL INC. 1,363,425.00
84,800 GILLETTE CO 4,096,900.00
23,200 TENET HEALTHCARE CORP 609,000.00
TOTAL CHEMICALS AND DRUGS $81,326,475.00
CONSUMER PRODUCTS 12.83%
CONFECTIONS AND BEVERAGES
37,000 ANHEUSER-BUSCH COS 2,428,125.00
187,000 COCA COLA CO 12,505,625.00
114,700 PEPSICO INC 4,695,531.25
PACKAGED FOOD
34,500 CAMPBELL SOUP CO 1,897,500.00
36,000 CONAGRA 1,134,000.00
27,600 HEINZ H J CO 1,562,850.00
31,100 KELLOGG CO 1,061,287.50
183,300 PHILLIP MORRIS CO INC 9,806,550.00
10,500 QUAKER OATS CO 624,750.00
71,600 SARA LEE CORP 2,018,225.00
PAPER
22,900 INTERNATIONAL PAPER CO 1,026,206.25
42,000 KIMBERLY CLARK CORP 2,289,000.00
15,100 WEYERHAEUSER CO 767,268.75
PRINTING AND PUBLISHING
21,500 GANNETT CO., INC 1,386,750.00
7,500 MCGRAW-HILL COMPANIES INC 764,062.50
87,400 TIME WARNER INC 5,424,262.50
OTHER CONSUMER PRODUCTS
22,400 COLGATE PALMOLIVE CO 2,080,400.00
30,900 MINNESOTA MNG & MFR 2,197,762.50
101,500 PROCTER & GAMBLE CO 9,268,218.75
13,900 UST INC 484,762.50
PHOTOGRAPHY
24,600 EASTMAN KODAK CO. 1,771,200.00
APPAREL
22,000 NIKE INC CL B 892,375.00
TOTAL CONSUMER PRODUCTS $66,086,712.50
DURABLE GOODS 22.22%
AEROSPACE-AIRCRAFT
75,600 BOEING CO 2,466,450.00
14,700 LOCKHEED MARTIN CORP 1,245,825.00
12,400 TEXTRON INC 941,625.00
17,600 UNITED TECHNOLOGIES CORP 1,914,000.00
AGRICULTURAL MACHINERY
28,200 CATERPILLAR INC 1,297,200.00
18,900 DEERE & CO 626,062.50
AUTOMOBILE AND PARTS
24,051 DAIMLERCHRYSLER AG 2,310,399.19
90,700 FORD MTR CO 5,322,956.25
53,500 GENERAL MTRS CORP 3,828,593.75
13,500 GENUINE PARTS CO 451,406.25
12,900 TENNECO INC 439,406.25
9,300 TRW INC 522,543.75
ELECTRICAL
16,600 AMP INC 864,237.50
33,500 EMERSON ELEC CO 2,026,750.00
9,600 HONEYWELL INC 723,000.00
ELECTRONICS
5,800 EATON CORP 409,987.50
247,500 GENERAL ELECTRIC CO 25,260,468.75
12,000 GENERAL MILLS INC 933,000.00
123,700 INTEL CORP 14,666,181.25
45,100 MOTOROLA INC 2,753,918.75
INDUSTRIAL MACHINERY
9,100 COOPER INDUS INC 433,956.25
OFFICE EQUIPMENT AND SUPPLIES
73,500 IBM COMMON 13,579,125.00
21,900 PITNEY BOWES INC 1,446,768.75
24,600 XEROX CORP. 2,902,800.00
RUBBER
11,800 GOODYEAR TIRE & RUBBER 595,162.50
OTHER DURABLE GOODS
42,700 ALLIED-SIGNAL INC 1,892,143.75
17,500 CORNING INCORPORATED 787,500.00
COMPUTERS AND SOFTWARE
22,600 AUTOMATIC DATA PROC 1,812,237.50
114,500 COMPAQ COMPUTER CORP 4,801,843.75
78,600 HEWLETT PACKARD CO 5,369,362.50
18,900 UNISYS CORP 650,868.75
TELECOMMUNICATIONS
98,400 LUCENT TECHNOLOGIES INC 10,824,000.00
16,250 SPRINT CORP PCS GROUP 375,781.25
TOTAL DURABLE GOODS $114,475,561.69
FINANCIAL 18.07%
BANKS
57,000 BANK NEW YORK INC 2,294,250.00
22,000 BANKBOSTON CORPORATION 856,625.00
7,400 BANKERS TR NY CORP 632,237.50
63,800 CHASE MANHATTAN CORP NEW 4,342,387.50
73,200 FIRST UNION CORP 4,451,475.00
41,200 FLEET FINANCIAL GROUP INC 1,841,125.00
15,950 HUNTINGTON BANCSHARES INC 479,496.88
33,200 KEYCORP 1,062,400.00
56,850 MBNA CORP 1,417,696.88
19,200 MELLON BANK CORP 1,320,000.00
13,400 MORGAN J P & CO 1,407,837.50
16,000 NATIONAL CITY CORP 1,160,000.00
15,900 SUNTRUST BANKS INC 1,216,350.00
55,800 U.S. BANCORP 1,980,900.00
15,600 WACHOVIA CORP 1,364,025.00
29,250 WASHINGTON MUTUAL INC 1,116,984.38
123,100 WELLS FARGO COMPANY NEW 4,916,306.25
FINANCE COMPANIES
35,100 AMERICAN EXPRESS CO 3,588,975.00
47,542 ASSOCIATES FIRST CAPITAL 2,014,592.25
52,600 FED HOME LN MTG CORP 3,389,412.50
80,200 FEDERAL NATL MTGE ASSN 5,934,800.00
24,300 HOUSEHOLD INTL CORP 962,887.50
44,800 MORGAN ST DE WTR DISC 3,180,800.00
23,100 PNC FINANCIAL 1,250,287.50
HOLDING COMPANY
84,440 BANK ONE CORP 4,311,717.50
130,395 BANKAMERICA CORP NEW 7,839,999.38
172,950 CITIGROUP INC 8,561,025.00
FIRE AND CASUALTY INSURANCE
12,900 CHUBB CORP 836,887.50
10,700 SAFECO CORP 459,431.25
INSURANCE
64,800 ALLSTATE CORP. 2,502,900.00
79,500 AMERICAN INTL GROUP 7,681,687.50
12,700 AON CORP 703,262.50
16,800 CIGNA CORP 1,298,850.00
17,800 HARTFORD FINANCIAL SVCS 976,775.00
19,200 MARSH & MCLENNAN CO. 1,122,000.00
12,600 ST PAUL COS INC 437,850.00
LIFE INSURANCE
19,200 AMERICAN GENERAL CORP 1,497,600.00
7,700 LINCOLN NATL CORP IND 629,956.25
BROKERAGE
25,200 MERRILL LYNCH & CO 1,682,100.00
MISCELLANEOUS
12,900 DUN & BRADSTREET CORP NEW 407,156.25
TOTAL FINANCIAL $93,131,049.77
METALS AND MINING 0.22%
ALUMINUM
13,000 ALUMINUM CO AMER 969,312.50
OTHER METALS
14,600 FREEPORT-MCMORAN COPPER-B 152,387.50
TOTAL METALS AND MINING $1,121,700.00
OIL-ENERGY 6.76%
OIL & GAS PRODUCERS
73,600 AMOCO CORP 4,342,400.00
25,600 OCCIDENTAL PETROLEUM 432,000.00
21,800 USX-MARTHON GROUP COM NEW 656,725.00
NATURAL RESOURCES
24,200 WILLIAMS COS INC-DEL 754,737.50
OIL - DOMESTIC
19,900 PHILLIPS PETE CO 848,237.50
18,600 UNOCAL CORP 542,887.50
OIL - INTERNATIONAL
24,300 ATLANTIC RICHFIELD CO 1,585,575.00
49,700 CHEVRON CORP 4,121,993.75
186,500 EXXON CORP. 13,637,812.50
59,300 MOBIL CORP 5,166,512.50
41,400 TEXACO INC 2,189,025.00
MISCELLANEOUS
17,400 FIRSTENERGY CORP 566,587.50
TOTAL OIL-ENERGY $34,844,493.75
RETAIL 3.99%
DEPARTMENT STORES
33,000 DAYTON HUDSON CORP 1,790,250.00
36,900 K MART 565,031.25
17,500 MAY DEPT STORES CO 1,056,562.50
18,900 PENNEY JC INC 885,937.50
29,600 SEARS ROEBUCK & CO 1,258,000.00
GROCERY
18,600 ALBERTSON'S INC 1,184,587.50
OTHER RETAIL
169,800 WAL MART STORES INC 13,828,087.50
TOTAL RETAIL $20,568,456.25
UTILITIES 11.43%
ELECTRIC
14,300 AMERICAN ELEC PWR INC 672,993.75
11,200 BALTIMORE GAS & ELEC 345,800.00
11,400 CAROLINA PWR & LT CO 536,512.50
16,000 CENTRAL & SOUTH WEST CORP 439,000.00
11,900 CINERGY CORP 409,062.50
17,800 CONSOLIDATED EDISON INC 941,175.00
14,600 DOMINION RES INC-VA 682,550.00
11,000 DTE ENERGY CO 471,625.00
27,200 DUKE POWER CO 1,742,500.00
28,800 EDISON INTERNATIONAL 802,800.00
18,400 ENTERGY CORP NEW 572,700.00
13,800 FPL GROUP INC 850,425.00
9,600 GPU INC 424,200.00
21,400 HOUSTON INDS INC 687,475.00
10,900 NIAGARA MOHAWK PWR 175,762.50
11,200 NORTHERN STS PWR CO 310,800.00
12,500 P P & L RESOURCES INC 348,437.50
22,400 PACIFICORP 471,800.00
16,800 PECO ENERGY CO 699,300.00
33,200 PG&E CORP 1,045,800.00
17,500 PUBLIC SVC ENTERPRISE GRP 700,000.00
52,200 SOUTHERN CO 1,517,062.50
16,400 UNICOM CORPORATION 632,425.00
GAS
7,200 CONSOLIDATED NATL GAS 388,800.00
18,600 TEXAS UTILITIES CO 868,387.50
TELEPHONE
122,800 A T & T 9,240,700.00
13,900 ALLTEL CORP 831,393.75
82,800 AMERITECH CORP NEW 5,247,450.00
117,400 BELL ATLANTIC CORP 6,222,200.00
150,000 BELLSOUTH CORP 7,481,250.00
23,500 ENRON CORP 1,340,968.75
12,400 FRONTIER CORP 421,600.00
72,400 GTE CORP 4,706,000.00
32,500 SPRINT CORP 2,734,062.50
36,500 US WEST INC (NEW) 2,358,812.50
WASTE DESPOSAL
14,700 BROWNING FERRIS IND 418,031.25
24,940 WASTE MANAGEMENT INC NEW 1,162,827.50
TOTAL UTILITIES $58,902,690.00
MISCELLANEOUS 6.57%
BROADCAST/COMMUNICATIONS
53,800 CBS CORP 1,761,950.00
153,300 DISNEY WALT CO 4,599,000.00
BUSINESS SERVICES
61,300 CENDANT CORP 1,168,531.25
FOOD SERVICE
52,100 MCDONALDS CORP 3,992,162.50
MED SERV & SUPPLIES
12,400 HUMANA INC 220,875.00
TRANSPORTATION
13,800 AMR CORP 819,375.00
35,400 BURLINGTON NRTHN SANTA FE 1,194,750.00
16,500 CSX CORP 684,750.00
28,500 NORFOLK SOUTHERN CORP 903,093.75
18,700 UNION PACIFIC CORP 842,668.75
MISCELLANEOUS
35,000 CARNIVAL CORP CL A 1,680,000.00
101,700 JOHNSON & JOHNSON 8,530,087.50
TELECOMMUNICATIONS
138,600 SBC COMMUNICATIONS INC 7,432,425.00
TOTAL MISCELLANEOUS $33,829,668.75
TOTAL COMMON STOCK $512,969,207.71
OTHER
0.45%
CASH EQUIVALENTS
2,318,541 AIM SHORT TERM INV SER 2 2,318,541.15
TOTAL $2,318,541.15
TOTAL OTHER $2,318,541.15
TOTAL INVESTMENTS - 100.00% $515,287,748.86
(cost $459,333,812)
See accompanying notes
