A MESSAGE TO PRINCIPAL VARIABLE LIFE AND VARIABLE ANNUITY CONTRACT OWNERS
Dear Contract Owner:
In the first half of 1999, domestic equity performance remained positive as the
U.S. economy continued to show strength. Despite the concern of many financial
experts that the cycle has passed its peak, the Dow Jones Industrial Average
returned 20.43% while the Standard & Poor's 500 Index returned 12.38% for the
six months ending June 30, 1999.
Some international markets continued to experience volatility, but many
rebounded nicely as investors realized that economic conditions were not as bad
as first thought. Bond markets suffered as fears of inflation and an overheated
economy caused the Federal Reserve Board to raise interest rates.
Thank you for letting us help you work toward your long-term financial goals. We
look forward to another successful year.
The Dow Jones Industrial Average is an index composed of the sum of the
stocks of 30 widely-held companies listed on the New York Stock Exchange.
The Standard and Poor's 500 Index is a market capitalization weighted price
index composed of 500 widely-held common stocks listed on the New York
Stock Exchange, American Stock Exchange and the Over-the-Counter market.
The value of each index varies according to the aggregate value of the
common equity of each of the securities included in the index. The indexes
represent asset types which are subject to risk, including the possible
loss of principal. These are unmanaged indexes into which direct investment
is not possible. Past performance does not guarantee future results.
CONTENTS
Page
Financial Statements and Highlights
Statements of Assets and Liabilities............................... 2
Statements of Operations .......................................... 8
Statements of Changes in Net Assets................................ 14
Notes to Financial Statements...................................... 24
Schedules of Investments
Aggressive Growth Account..................................... 34
Asset Allocation Account...................................... 35
Balanced Account.............................................. 41
Blue Chip Account............................................. 45
Bond Account.................................................. 46
Capital Value Account......................................... 49
Government Securities Account................................. 50
Growth Account................................................ 51
High Yield Account............................................ 53
International Account......................................... 55
International SmallCap Account................................ 57
LargeCap Growth Account....................................... 60
MicroCap Account.............................................. 61
MidCap Account................................................ 62
MidCap Growth Account......................................... 64
MidCap Value Account.......................................... 67
Money Market Account.......................................... 69
Real Estate Account........................................... 71
SmallCap Account.............................................. 72
SmallCap Growth Account....................................... 74
SmallCap Value Account........................................ 75
Stock Index 500 Account....................................... 79
Utilities Account............................................. 87
Financial Highlights............................................... 88
June 30, 1999
STATEMENTS OF ASSETS AND LIABILITIES
(unaudited)
<TABLE>
<CAPTION>
Aggressive Asset Blue
Growth Allocation Balanced Chip
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $221,948,752 $73,340,028 $197,630,440 $ 5,137,509
Assets
Investment in securities -- at value (Note 4)......... $286,093,145 $82,987,577 $223,418,828 $ 5,315,501
Cash ................................................. 5,463,447 4,512,662 10,001 10,001
Receivables:
Dividends and interest............................. 176,790 567,014 1,311,218 9,843
Investment securities sold......................... 1,547,232 167,741 -- 22,514
Capital Shares sold................................ 6,250 -- 295,700 2,112
Total Assets 293,286,864 88,234,994 225,035,747 5,359,971
Liabilities
Accrued expenses...................................... 166,397 71,056 100,578 5,440
Payables:
Investment securities purchased.................... 984,300 115,386 -- 68,349
Capital Shares reacquired.......................... 6,297 11,494 -- --
Total Liabilities 1,156,994 197,936 100,578 73,789
Net Assets Applicable to Outstanding Shares........... $292,129,870 $88,037,058 $224,935,169 $ 5,286,182
Net Assets Consist of:
Capital Stock......................................... $ 138,457 $ 66,360 $ 131,859 $ 5,083
Additional paid-in capital............................ 213,765,878 72,108,645 191,758,197 5,078,196
Accumulated undistributed net investment income....... -- 1,028,844 3,389,173 15,948
Accumulated undistributed net realized
gain (loss) from investment and foreign
currency transactions ............................. 14,081,142 5,185,660 3,867,552 8,963
Net unrealized appreciation (depreciation)
of investments..................................... 64,144,393 9,647,549 25,788,388 177,992
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Total Net Assets $292,129,870 $88,037,058 $224,935,169 $ 5,286,182
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000 100,000,000 100,000,000
Shares issued and outstanding......................... 13,845,672 6,636,048 13,185,900 508,287
Net Asset Value Per Share............................. $21.10 $13.27 $17.06 $10.40
<CAPTION>
Capital Government
Bond Value Securities Growth
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $129,240,448 $341,441,939 $144,019,545 $230,943,206
Assets
Investment in securities -- at value (Note 4)......... $126,065,382 $429,690,543 $143,781,656 $327,663,173
Cash ................................................. 10,000 10,001 10,214 114,786
Receivables:
Dividends and interest............................. 2,214,333 466,035 1,224,548 303,659
Investment securities sold......................... -- -- -- --
Capital Shares sold................................ 179,540 328,804 192,801 189,276
Total Assets 128,469,255 430,495,383 145,209,219 328,270,894
Liabilities
Accrued expenses...................................... 49,401 143,270 54,969 108,312
Payables:
Investment securities purchased.................... 1,375,770 -- 1,851,250 5,530,533
Capital Shares reacquired.......................... -- 3,126 46 --
Total Liabilities 1,425,171 146,396 1,906,265 5,638,845
Net Assets Applicable to Outstanding Shares........... $127,044,084 $430,348,987 $143,302,954 $322,632,049
Net Assets Consist of:
Capital Stock......................................... $ 108,523 $ 109,527 $ 131,849 $ 143,957
Additional paid-in capital............................ 125,938,910 310,276,595 139,457,914 219,675,886
Accumulated undistributed net investment income....... 4,047,386 3,989,124 4,354,056 1,166,012
Accumulated undistributed net realized
gain (loss) from investment and foreign
currency transactions ............................. 124,331 27,725,137 (402,976) 4,926,227
Net unrealized appreciation (depreciation)
of investments..................................... (3,175,066) 88,248,604 (237,889) 96,719,967
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Total Net Assets $127,044,084 $430,348,987 $143,302,954 $322,632,049
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000 100,000,000 100,000,000
Shares issued and outstanding......................... 10,852,298 10,952,714 13,184,850 14,395,723
Net Asset Value Per Share............................. $11.71 $39.29 $10.87 $22.41
<CAPTION>
High
Yield International
Account Account
<S> <C> <C>
Investment in securities -- at cost................... $14,658,104 $156,747,757
Assets
Investment in securities -- at value (Note 4)......... $13,629,851 $168,102,048
Cash ................................................. 10,001 15,262
Receivables:
Dividends and interest............................. 289,848 635,629
Investment securities sold......................... -- --
Capital Shares sold................................ 234 81,062
Total Assets 13,929,934 168,834,001
Liabilities
Accrued expenses...................................... 7,051 104,814
Payables:
Investment securities purchased.................... -- 4,458,082
Capital Shares reacquired.......................... -- 14,120
Total Liabilities 7,051 4,577,016
Net Assets Applicable to Outstanding Shares........... $13,922,883 $164,256,985
Net Assets Consist of:
Capital Stock......................................... $ 17,213 $109,362
Additional paid-in capital............................ 15,415,480 139,223,283
Accumulated undistributed net investment income....... 624,090 2,287,898
Accumulated undistributed net realized
gain (loss) from investment and foreign
currency transactions ............................. (1,105,647) 11,289,686
Net unrealized appreciation (depreciation)
of investments..................................... (1,028,253) 11,354,291
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currencies................................. -- (7,535)
Total Net Assets $13,922,883 $164,256,985
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000
Shares issued and outstanding......................... 1,721,303 10,936,240
Net Asset Value Per Share............................. $8.09 $15.02
</TABLE>
June 30, 1999
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
(unaudited)
<TABLE>
<CAPTION>
International LargeCap
SmallCap Growth MicroCap MidCap
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $16,148,532 $4,478,610 $5,972,711 $213,888,380
Assets
Investment in securities -- at value (Note 4)......... $18,325,842 $4,798,762 $6,366,971 $260,653,438
Cash ................................................. 151,366 477,751 327,063 10,001
Receivables:
Dividends and interest............................. 29,891 2,691 2,099 118,693
Investment securities sold......................... 176,179 -- 75,923 2,397,945
Capital Shares sold................................ 15,827 34,160 7 158,509
Prepaid Expenses...................................... 2,621 -- -- --
Total Assets 18,701,726 5,313,364 6,772,063 263,338,586
Liabilities
Accrued expenses...................................... -- 6,070 549 127,502
Payables:
Investment securities purchased.................... 486,116 -- 135,232 --
Capital Shares reacquired.......................... -- -- 3,056 26,188
Total Liabilities 486,116 6,070 138,837 153,690
Net Assets Applicable to Outstanding Shares........... $18,215,610 $5,307,294 $6,633,226 $263,184,896
Net Assets Consist of:
Capital Stock......................................... $ 17,007 $ 5,032 $ 7,185 $ 74,525
Additional paid-in capital............................ 16,556,891 5,029,129 6,886,449 206,945,881
Accumulated undistributed net investment income....... 52,026 1,842 6,809 581,838
Accumulated undistributed net realized
gain (loss) on investment transactions............. (585,948) (48,861) (661,477) 8,817,594
Net unrealized appreciation (depreciation)
of investments..................................... 2,177,310 320,152 394,260 46,765,058
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currencies................................. (1,676) -- -- --
Total Net Assets $18,215,610 $5,307,294 $6,633,226 $263,184,896
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000 100,000,000 100,000,000
Shares issued and outstanding......................... 1,700,689 503,238 718,519 7,452,504
Net Asset Value Per Share............................. $10.71 $10.55 $9.23 $35.31
<CAPTION>
MidCap MidCap Money Real
Growth Value Market Estate
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $ 9,388,105 $5,038,982 $80,767,335 $11,959,905
Assets
Investment in securities -- at value (Note 4)......... $10,539,902 $5,248,988 $80,767,335 $11,767,669
Cash ................................................. 200,311 27,199 11,944 10,001
Receivables:
Dividends and interest............................. 6,614 6,110 197,532 101,286
Investment securities sold......................... 214,466 30,974 -- --
Capital Shares sold................................ 1,308 27,587 2,824 49
Prepaid Expenses...................................... -- -- -- --
Total Assets 10,962,601 5,340,858 80,979,635 11,879,005
Liabilities
Accrued expenses...................................... 2,204 6,099 28,503 10,040
Payables:
Investment securities purchased.................... -- 37,579 321,649 --
Capital Shares reacquired.......................... -- -- 1,047,345 941
Total Liabilities 2,204 43,678 1,397,497 10,981
Net Assets Applicable to Outstanding Shares........... $10,960,397 $5,297,180 $79,582,138 $11,868,024
Net Assets Consist of:
Capital Stock......................................... $ 10,927 $ 5,026 $ 795,821 $ 12,627
Additional paid-in capital............................ 10,339,607 5,022,561 78,786,317 12,412,719
Accumulated undistributed net investment income....... 10,694 5,224 -- 282,217
Accumulated undistributed net realized
gain (loss) on investment transactions............. (552,628) 54,363 -- (647,303)
Net unrealized appreciation (depreciation)
of investments..................................... 1,151,797 210,006 -- (192,236)
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Total Net Assets $10,960,397 $5,297,180 $79,582,138 $11,868,024
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000 500,000,000 100,000,000
Shares issued and outstanding......................... 1,092,716 502,617 79,582,138 1,262,660
Net Asset Value Per Share............................. $10.03 $10.54 $1.000 $9.40
<CAPTION>
SmallCap
SmallCap Growth
Account Account
<S> <C> <C>
Investment in securities -- at cost................... $17,797,523 $ 9,784,786
Assets
Investment in securities -- at value (Note 4)......... $17,831,108 $12,896,769
Cash ................................................. 148,224 479,529
Receivables:
Dividends and interest............................. 8,436 1,559
Investment securities sold......................... 101,397 80,533
Capital Shares sold................................ 501 42,630
Prepaid Expenses...................................... -- --
Total Assets 18,089,666 13,501,020
Liabilities
Accrued expenses...................................... 14,747 7,471
Payables:
Investment securities purchased.................... -- 15,713
Capital Shares reacquired.......................... 3,346 --
Total Liabilities 18,093 23,184
Net Assets Applicable to Outstanding Shares........... $18,071,573 $13,477,836
Net Assets Consist of:
Capital Stock......................................... $ 18,519 $10,534
Additional paid-in capital............................ 16,917,165 10,225,099
Accumulated undistributed net investment income....... 227 --
Accumulated undistributed net realized
gain (loss) on investment transactions............. 1,102,077 130,220
Net unrealized appreciation (depreciation)
of investments..................................... 33,585 3,111,983
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currencies................................. -- --
Total Net Assets $18,071,573 $13,477,936
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000
Shares issued and outstanding......................... 1,851,925 1,053,399
Net Asset Value Per Share............................. $9.76 $12.79
</TABLE>
June 30, 1999
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
(unaudited)
<TABLE>
<CAPTION>
SmallCap Stock Index
Value 500 Utilities
Account Account Account
<S> <C> <C> <C>
Investment in securities -- at cost................... $7,890,998 $15,028,768 $23,159,054
Assets
Investment in securities -- at value (Note 4)......... $8,502,473 $15,222,331 $25,605,521
Cash ................................................. 372,731 38,289 10,192
Receivables:
Dividends and interest............................. 8,861 9,807 46,818
Investment securities sold......................... 90,378 74,746 --
Capital Shares sold................................ 100 166,151 32,640
Prepaid expenses...................................... 173 -- --
Variation margin (Note 7)............................. -- 18,727 --
Total Assets 8,974,716 15,530,051 25,695,171
Liabilities
Accrued expenses...................................... -- 7,916 14,046
Payables:
Investment securities purchased.................... 107,049 17,697 --
Capital Shares reacquired.......................... 5,377 -- --
Total Liabilities 112,426 25,613 14,046
Net Assets Applicable to Outstanding Shares........... $8,862,290 $15,504,438 $25,681,125
Net Assets Consist of:
Capital Stock......................................... $ 9,719 $ 15,353 $ 22,409
Additional paid-in capital............................ 8,902,777 15,217,869 22,846,556
Accumulated undistributed net investment income....... 31,142 41,329 278,983
Accumulated undistributed net realized
gain (loss) on investment transactions............. (692,823) 4,720 86,710
Net unrealized appreciation of investments............ 611,475 225,167 2,446,467
Total Net Assets $8,862,290 $15,504,438 $25,681,125
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000 100,000,000
Shares issued and outstanding......................... 971,886 1,535,254 2,240,914
Net Asset Value Per Share............................. $9.12 $10.10 $11.46
</TABLE>
Six Months Ended June 30, 1999, Except as Noted
STATEMENTS OF OPERATIONS
(unaudited)
<TABLE>
<CAPTION>
Aggressive Asset Blue
Growth Allocation Balanced Chip
Account Account Account Account(a)
<S> <C> <C> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ 711,695 $ 358,402 $ 1,100,637 $ 21,473
Withholding tax on foreign dividends................. -- -- -- --
Interest............................................. 158,571 990,142 2,916,095 3,805
Total Income 870,266 1,348,544 4,016,732 25,278
Expenses:
Management and investment advisory fees (Note 3)..... 950,913 337,824 593,622 6,413
Custodian fees....................................... 9,660 21,213 764 2,124
Directors' fees...................................... 3,020 3,009 3,049 789
Other................................................ -- 1,030 -- 4
Total Expenses 963,593 363,076 597,435 9,330
Net Investment Income (Operating Loss) (93,327) 985,468 3,419,297 15,948
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 14,079,764 5,182,151 3,865,560 8,963
Foreign currency transactions........................ -- -- -- --
Change in unrealized appreciation/depreciation of:
Investments ......................................... 23,105,442 784,739 5,243,921 177,992
Translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currencies 37,185,206 5,966,890 9,109,481 186,955
Net Increase (Decrease) in Net Assets
Resulting from Operations $37,091,879 $6,952,358 $12,528,778 $202,903
<CAPTION>
Capital Government
Bond Value Securities Growth
Account Account Account Account
<S> <C> <C> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ -- $ 4,621,200 $ -- $ 1,485,303
Withholding tax on foreign dividends................. -- -- -- --
Interest............................................. 4,355,051 207,912 4,706,536 282,507
Total Income 4,355,051 4,829,112 4,706,536 1,767,810
Expenses:
Management and investment advisory fees (Note 3)..... 304,304 848,121 345,347 646,653
Custodian fees....................................... 1,364 969 2,841 794
Directors' fees...................................... 2,949 2,982 2,854 2,742
Other................................................ (78) 84 2,300 (2,729)
Total Expenses 308,539 852,156 353,342 647,460
Net Investment Income (Operating Loss) 4,046,512 3,976,956 4,353,194 1,120,350
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 225,134 27,723,817 (17,344) 4,971,004
Foreign currency transactions........................ -- -- -- --
Change in unrealized appreciation/depreciation of:
Investments ......................................... (7,518,855) (3,975,370) (5,993,904) 22,166,764
Translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currencies (7,293,721) 23,748,447 (6,011,248) 27,137,768
Net Increase (Decrease) in Net Assets
Resulting from Operations $(3,247,209) $27,725,403 $(1,658,054) $28,258,118
<CAPTION>
High
Yield International
Account Account
<S> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ -- $ 3,031,715
Withholding tax on foreign dividends................. -- (300,022)
Interest............................................. 645,923 189,550
Total Income 645,923 2,921,243
Expenses:
Management and investment advisory fees (Note 3)..... 41,576 578,191
Custodian fees....................................... 1,880 25,549
Directors' fees...................................... 2,920 3,429
Other................................................ 167 34
Total Expenses 46,543 607,203
Net Investment Income (Operating Loss) 599,380 2,314,040
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. (317,111) 10,042,913
Foreign currency transactions........................ -- (78,374)
Change in unrealized appreciation/depreciation of:
Investments ......................................... (225,442) (4,745,477)
Translation of assets and liabilities in
foreign currencies................................. -- 30,823
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currencies (542,553) 5,249,885
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 56,827 $ 7,563,925
(a) Period from April 15, 1999 (date operations commenced) through June 30,
1999.
</TABLE>
Six Months Ended June 30, 1999, Except as Noted
STATEMENTS OF OPERATIONS (Continued)
(unaudited)
<TABLE>
<CAPTION>
International LargeCap
SmallCap Growth MicroCap MidCap
Account Account(a) Account Account
<S> <C> <C> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ 128,295 $ 3,696 $ 23,139 1,043,115
Withholding tax on foreign dividends................. (13,481) -- -- --
Interest............................................. 16,070 10,629 12,335 251,740
Total Income 130,884 14,325 35,474 1,294,855
Expenses:
Management and investment advisory fees (Note 3)..... 74,627 11,437 27,453 761,114
Custodian fees....................................... -- 1,111 6,796 3,361
Directors' fees...................................... 4,287 789 4,184 2,981
Other................................................ 89 4 16 --
Total Gross Expenses 79,003 13,341 38,449 767,456
Less: Management and investment
advisory fees waived................................. -- 858 9,530 --
Total Net Expenses 79,003 12,483 28,919 767,456
Net Investment Income (Operating Loss) 51,881 1,842 6,555 527,399
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. (264,690) (48,861) (379,406) 8,816,449
Foreign currency transactions........................ (1,356) -- -- --
Other investment companies........................... -- -- -- --
Change in unrealized appreciation/depreciation of:
Investments ......................................... 2,920,372 320,152 1,133,923 3,132,430
Translation of assets and liabilities in
foreign currencies................................. (2,029) -- -- --
Net Realized and Unrealized Gain on
Investments and Foreign Currencies 2,652,297 271,291 754,517 11,948,879
Net Increase in Net Assets Resulting
from Operations $2,704,178 $273,133 $ 761,072 $12,476,278
<CAPTION>
MidCap MidCap Money Real
Growth Value Market Estate
Account Account(b) Account Account
<S> <C> <C> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ 47,401 $ 11,548 $ -- $ 333,178
Withholding tax on foreign dividends................. -- -- -- --
Interest............................................. 6,528 5,223 1,911,180 5,714
Total Income 53,929 16,771 1,911,180 338,892
Expenses:
Management and investment advisory fees (Note 3)..... 40,781 10,235 188,525 49,211
Custodian fees....................................... 9,272 968 698 1,697
Directors' fees...................................... 4,240 736 2,943 4,224
Other................................................ 14 4 -- 1,608
Total Gross Expenses 54,307 11,943 192,166 56,740
Less: Management and investment
advisory fees waived................................. 11,072 396 -- --
Total Net Expenses 43,235 11,547 192,166 56,740
Net Investment Income (Operating Loss) 10,694 5,224 1,719,014 282,152
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 181,473 54,363 -- (484,296)
Foreign currency transactions........................ -- -- -- --
Other investment companies........................... -- -- -- 8,894
Change in unrealized appreciation/depreciation of:
Investments ......................................... 282,579 210,006 -- 665,614
Translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Net Realized and Unrealized Gain on
Investments and Foreign Currencies 464,052 264,369 -- 190,212
Net Increase in Net Assets Resulting
from Operations $474,746 $ 269,593 $1,719,014 $ 472,364
<CAPTION>
SmallCap
SmallCap Growth
Account Account
<S> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ 45,883 $ 1,779
Withholding tax on foreign dividends................. -- --
Interest............................................. 20,263 21,047
Total Income 66,146 22,826
Expenses:
Management and investment advisory fees (Note 3)..... 58,270 50,251
Custodian fees....................................... 3,383 5,159
Directors' fees...................................... 4,187 4,227
Other................................................ 71 226
Total Gross Expenses 65,911 59,863
Less: Management and investment
advisory fees waived................................. -- 7,025
Total Net Expenses 65,911 52,838
Net Investment Income (Operating Loss) 235 (30,012)
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 1,173,237 869,398
Foreign currency transactions........................ -- --
Other investment companies........................... -- --
Change in unrealized appreciation/depreciation of:
Investments ......................................... 1,627,331 1,800,706
Translation of assets and liabilities in
foreign currencies................................. -- --
Net Realized and Unrealized Gain on
Investments and Foreign Currencies 2,800,568 2,670,104
Net Increase in Net Assets Resulting
from Operations $2,800,803 $2,640,092
<FN>
(a) Period from April 15, 1999 (date operations commenced) through June 30,
1999.
(b) Period from April 22, 1999 (date operations commenced) through June 30,
1999.
</FN>
</TABLE>
Six Months Ended June 30, 1999, Except as Noted
STATEMENTS OF OPERATIONS (Continued)
(unaudited)
<TABLE>
<CAPTION>
SmallCap Stock Index
Value 500 Utilities
Account Account(a) Account
<S> <C> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ 63,479 $ 29,618 $ 317,354
Interest............................................. 9,921 20,741 26,234
Total Income 73,400 50,359 343,588
Expenses:
Management and investment
advisory fees (Note 3)............................. 40,758 7,851 63,685
Custodian fees....................................... 7,231 5,455 2,110
Directors' fees...................................... 4,158 736 4,158
Other................................................ 71 4 54
Total Gross Expenses 52,218 14,046 70,007
Less: Management and investment
advisory fees waived................................. 9,506 5,016 --
Total Net Expenses 42,712 9,030 70,007
Net Investment Income 30,688 41,329 273,581
Net Realized and Unrealized Gain (Loss) on
Investments
Net realized gain (loss) from investment transactions... (193,824) 4,720 102,151
Change in unrealized appreciation/depreciation of
Investments ......................................... 924,641 193,563 868,291
Futures Contracts (Note 7)........................... -- 31,604 --
Net Realized and Unrealized
Gain on Investments 730,818 229,887 970,442
Net Increase in Net Assets Resulting
from Operations $ 761,506 $ 271,216 $1,244,023
<FN>
(a) Period from April 22, 1999 (date operations commenced) through June 30,
1999.
</FN>
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
<TABLE>
<CAPTION>
Aggressive Growth Asset Allocation
Account Account
Six Months Year Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ (93,327) $ 416,093 $ 985,468 $ 2,045,074
Net realized gain from investment transactions......... 14,079,764 8,924,147 5,182,151 2,109,740
Change in unrealized appreciation/depreciation
of investments...................................... 23,105,442 21,906,942 784,739 2,810,389
Net Increase (Decrease) in Net Assets
Resulting from Operations 37,091,879 31,247,182 6,952,358 6,965,203
Dividends and Distributions to Shareholders
From net investment income............................. -- (414,827) -- (2,028,007)
From net realized gain on investments.................. (890,541) (10,737,997) (409,809) (2,641,599)
Excess distribution from net realized gain on
investments......................................... -- -- -- --
Total Dividends and Distributions (890,541) (11,152,824) (409,809) (4,669,606)
Capital Share Transactions (Note 5)
Shares sold............................................ 40,137,181 72,833,445 4,387,623 14,893,506
Shares issued in reinvestment of dividends
and distributions................................... 890,541 11,077,348 319,562 3,422,465
Shares redeemed........................................ (9,157,256) (29,129,088) (7,301,961) (13,326,727)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 31,870,466 54,781,705 (2,594,776) 4,989,244
Total Increase 68,071,804 74,876,063 3,947,773 7,284,841
Net Assets
Beginning of period.................................... 224,058,066 149,182,003 84,089,285 76,804,444
End of period (including undistributed net
investment income as set forth below)............... $292,129,870 $224,058,066 $88,037,058 $84,089,285
Undistributed Net Investment Income ............... $ -- $ 11,545 $ 1,028,843 $ 43,376
<CAPTION>
Balanced Blue Chip
Account Account
Six Months Year Period
Ended Ended Ended
June 30, December 31, June 30,
1999 1998 1999(a)
<S> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ 3,419,297 $ 5,571,969 $ 15,948
Net realized gain from investment transactions......... 3,865,560 6,127,300 8,963
Change in unrealized appreciation/depreciation
of investments...................................... 5,243,921 6,919,746 177,992
Net Increase (Decrease) in Net Assets
Resulting from Operations 12,528,778 18,619,015 202,903
Dividends and Distributions to Shareholders
From net investment income............................. (102,690) (5,549,524) --
From net realized gain on investments.................. (1,722,225) (6,200,923) --
Excess distribution from net realized gain on
investments......................................... -- -- --
Total Dividends and Distributions (1,824,915) (11,750,447) --
Capital Share Transactions (Note 5)
Shares sold............................................ 21,985,426 58,745,324 5,083,279
Shares issued in reinvestment of dividends
and distributions................................... 1,823,946 11,678,013 --
Shares redeemed........................................ (8,181,360) (12,515,718) --
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 15,628,012 57,907,619 5,083,279
Total Increase 26,331,875 64,776,187 5,286,182
Net Assets
Beginning of period.................................... 198,603,294 133,827,107 --
End of period (including undistributed net
investment income as set forth below)............... $224,935,169 $198,603,294 $5,286,182
Undistributed Net Investment Income ............... $ 3,389,173 $ 72,566 $ 15,948
<CAPTION>
Bond
Account
Six Months Year
Ended Ended
June 30, December 31,
1999 1998
<S> <C> <C>
Operations
Net investment income (operating loss)................. $ 4,046,512 $ 6,310,353
Net realized gain from investment transactions......... 225,134 171,543
Change in unrealized appreciation/depreciation
of investments...................................... (7,518,855) 665,410
Net Increase (Decrease) in Net Assets
Resulting from Operations (3,247,209) 7,147,306
Dividends and Distributions to Shareholders
From net investment income............................. (131,590) (6,229,921)
From net realized gain on investments.................. -- --
Excess distribution from net realized gain on
investments......................................... -- (64,690)
Total Dividends and Distributions (131,590) (6,294,611)
Capital Share Transactions (Note 5)
Shares sold............................................ 15,227,203 43,746,705
Shares issued in reinvestment of dividends
and distributions................................... 131,590 6,235,729
Shares redeemed........................................ (6,908,685) (10,783,022)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 8,450,108 39,199,412
Total Increase 5,071,309 40,052,107
Net Assets
Beginning of period.................................... 121,972,775 81,920,668
End of period (including undistributed net
investment income as set forth below)............... $127,044,084 $121,972,775
Undistributed Net Investment Income ............... $ 4,047,386 $132,464
<FN>
(a) Period from April 15, 1999 (date operations commenced) through June 30,
1999.
</FN>
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
Capital Value Government Securities
Account Account
Six Months Year Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Operations
Net investment income.................................. $ 3,976,956 $ 6,985,872 $ 4,353,194 $ 7,217,758
Net realized gain (loss) from investment and
foreign currency transactions....................... 27,723,817 16,930,138 (17,344) (13,992)
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... (3,975,370) 17,291,388 (5,993,904) 2,037,737
Net Increase (Decrease) in Net Assets
Resulting from Operations 27,725,403 41,207,398 (1,658,054) 9,241,503
Dividends and Distributions to Shareholders
From net investment income............................. (139,337) (6,911,025) (155,338) (7,115,164)
From net realized gain on investments and foreign
currency transactions............................... (4,674,667) (13,164,503) -- --
Total Dividends and Distributions (4,814,004) (20,075,528) (155,338) (7,115,164)
Capital Share Transactions (Note 5)
Shares sold............................................ 28,525,127 79,577,822 15,807,548 46,958,873
Shares issued in reinvestment of dividends
and distributions................................... 4,794,918 19,989,935 155,338 7,060,788
Shares redeemed........................................ (11,606,250) (20,207,043) (12,163,766) (9,151,234)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 21,713,795 79,360,714 3,799,120 44,868,427
Total Increase (Decrease) 44,625,194 100,492,584 1,985,728 46,994,766
Net Assets
Beginning of period.................................... 385,723,793 285,231,209 141,317,226 94,322,460
End of period (including undistributed net
investment income as set forth below)............... $430,348,987 $385,723,793 $143,302,954 $141,317,226
Undistributed Net Investment Income ............... $ 3,989,124 $ 151,505 $ 4,354,056 $ 156,200
<CAPTION>
Growth High Yield
Account Account
Six Months Year Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Operations
Net investment income.................................. $ 1,120,350 $ 2,637,397 $ 599,380 $ 1,269,488
Net realized gain (loss) from investment and
foreign currency transactions....................... 4,971,004 3,840,296 (317,111) (124,849)
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... 22,166,764 33,717,501 (225,442) (1,237,225)
Net Increase (Decrease) in Net Assets
Resulting from Operations 28,258,118 40,195,194 56,827 (92,586)
Dividends and Distributions to Shareholders
From net investment income............................. -- (2,591,736) -- (1,258,071)
From net realized gain on investments and foreign
currency transactions............................... (1,365,000) (2,466,719) -- --
Total Dividends and Distributions (1,365,000) (5,058,455) -- (1,258,071)
Capital Share Transactions (Note 5)
Shares sold............................................ 38,780,225 62,174,313 36,485 538,125
Shares issued in reinvestment of dividends
and distributions................................... 1,356,515 5,025,050 -- 1,258,071
Shares redeemed........................................ (4,225,422) (10,668,882) (213,061) (2,239,690)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 35,911,318 56,530,481 (176,576) (443,494)
Total Increase (Decrease) 62,804,436 91,667,220 (119,749) (1,794,151)
Net Assets
Beginning of period.................................... 259,827,613 168,160,393 14,042,632 15,836,783
End of period (including undistributed net
investment income as set forth below)............... $322,632,049 $259,827,613 $13,922,883 $14,042,632
Undistributed Net Investment Income ............... $ 1,166,012 $ 45,662 $ 624,090 $ 24,710
<CAPTION>
International
Account
Six Months Year
Ended Ended
June 30, December 31,
1999 1998
<S> <C> <C>
Operations
Net investment income.................................. $ 2,314,040 $ 2,562,111
Net realized gain (loss) from investment and
foreign currency transactions....................... 9,964,539 8,234,283
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... (4,714,654) 1,259,587
Net Increase (Decrease) in Net Assets
Resulting from Operations 7,563,925 12,055,981
Dividends and Distributions to Shareholders
From net investment income............................. -- (2,463,498)
From net realized gain on investments and foreign
currency transactions............................... (2,086,113) (5,106,126)
Total Dividends and Distributions (2,086,113) (7,569,624)
Capital Share Transactions (Note 5)
Shares sold............................................ 9,100,838 27,355,505
Shares issued in reinvestment of dividends
and distributions................................... 2,069,440 7,505,035
Shares redeemed........................................ (5,979,020) (11,047,756)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 5,191,258 23,812,784
Total Increase (Decrease) 10,669,070 28,299,141
Net Assets
Beginning of period.................................... 153,587,915 125,288,774
End of period (including undistributed net
investment income as set forth below)............... $164,256,985 $153,587,915
Undistributed Net Investment Income ............... $ 2,287,898 $ 98,613
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
International SmallCap LargeCap Growth
Account Account
Six Months Period Period
Ended Ended Ended
June 30, December 31, June 30,
1999 1998(a) 1999(b)
<S> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ 51,881 $ 37,054 $ 1,842
Net realized gain (loss) from investment and
foreign currency transactions....................... (266,046) (321,166) (48,861)
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... 2,918,343 (742,709) 320,152
Net Increase (Decrease) in Net Assets
Resulting from Operations 2,704,178 (1,026,821) 273,133
Dividends and Distributions to Shareholders
From net investment income............................. -- (35,645) --
From net realized gain on investments and foreign
currency transactions............................... -- -- --
Total Dividends and Distributions -- (35,645) --
Capital Share Transactions (Note 5)
Shares sold............................................ 2,730,385 14,424,171 5,034,161
Shares issued in reinvestment of dividends
and distributions................................... -- 10,645 --
Shares redeemed........................................ (294,105) (297,198) --
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 2,436,280 14,137,618 5,034,161
Total Increase 5,140,458 13,075,152 5,307,294
Net Assets
Beginning of period.................................... 13,075,152 -- --
End of period (including undistributed net
investment income as set forth below)............... $18,215,610 $13,075,152 $5,307,294
Undistributed Net Investment Income ............... $ 50,671 $ 1,409 $ 1,842
<CAPTION>
MicroCap MidCap
Account Account
Six Months Period Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1999 1998(c) 1999 1998
<S> <C> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ 6,555 $ 23,660 $ 527,399 $ 1,551,489
Net realized gain (loss) from investment and
foreign currency transactions....................... (379,406) (282,071) 8,816,449 19,861,967
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... 1,133,923 (739,663) 3,132,430 (14,225,511)
Net Increase (Decrease) in Net Assets
Resulting from Operations 761,072 (998,074) 12,476,278 7,187,945
Dividends and Distributions to Shareholders
From net investment income............................. -- (23,406) -- (1,523,502)
From net realized gain on investments and foreign
currency transactions............................... -- -- (5,550,243) (14,343,647)
Total Dividends and Distributions -- (23,406) (5,550,243) (15,867,149)
Capital Share Transactions (Note 5)
Shares sold............................................ 613,496 6,619,971 8,772,073 42,184,795
Shares issued in reinvestment of dividends
and distributions................................... -- 5,406 5,522,588 15,782,083
Shares redeemed........................................ (124,941) (220,298) (17,506,008) (14,447,105)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 488,555 6,405,079 (3,211,347) 43,519,773
Total Increase 1,249,627 5,383,599 3,714,688 34,840,569
Net Assets
Beginning of period.................................... 5,383,599 -- 259,470,208 224,629,639
End of period (including undistributed net
investment income as set forth below)............... $6,633,226 $5,383,599 $263,184,896 $259,470,208
Undistributed Net Investment Income ............... $ 6,809 $ 254 $ 581,838 $ 54,439
<CAPTION>
MidCap Growth
Account
Six Months Period
Ended Ended
June 30, December 31,
1999 1998(d)
<S> <C> <C>
Operations
Net investment income (operating loss)................. $ 10,694 $ (2,778)
Net realized gain (loss) from investment and
foreign currency transactions....................... 181,473 (734,101)
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... 282,579 869,218
Net Increase (Decrease) in Net Assets
Resulting from Operations 474,746 132,339
Dividends and Distributions to Shareholders
From net investment income............................. -- --
From net realized gain on investments and foreign
currency transactions............................... -- --
Total Dividends and Distributions -- --
Capital Share Transactions (Note 5)
Shares sold............................................ 2,287,547 8,559,386
Shares issued in reinvestment of dividends
and distributions................................... -- --
Shares redeemed........................................ (335,407) (158,214)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 1,952,140 8,401,172
Total Increase 2,426,886 8,533,511
Net Assets
Beginning of period.................................... 8,533,511 --
End of period (including undistributed net
investment income as set forth below)............... $10,960,397 $8,533,511
Undistributed Net Investment Income ............... $ 2,159 $ --
<FN>
(a) Period from April 16, 1998 (date operations commenced) through December 31,
1998.
(b) Period from April 15, 1999 (date operations commenced) through June 30,
1999.
(c) Period from April 9, 1998 (date operations commenced) through December 31,
1998.
(d) Period from April 23, 1998 (date operations commenced) through December 31,
1998.
</FN>
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
MidCap Value Money Market
Account Account
Period Six Months Year
Ended Ended Ended
June 30, June 30, December 31,
1999(a) 1999 1998
<S> <C> <C> <C>
Operations
Net investment income.................................. $ 5,224 $ 1,719,014 $ 3,100,805
Net realized gain (loss) from investment and
foreign currency transactions....................... 54,363 -- --
Change in unrealized appreciation/depreciation
of investments ..................................... 210,006 -- --
Net Increase (Decrease) in Net Assets
Resulting from Operations 269,593 1,719,014 3,100,805
Dividends to Shareholders from Net Investment Income... -- (1,719,014) (3,100,805)
Capital Share Transactions (Note 5)
Shares sold............................................ 5,027,587 44,256,984 130,878,349
Shares issued in reinvestment of dividends
and distributions................................... -- 1,716,220 3,052,413
Shares redeemed........................................ -- (49,653,888) (97,982,858)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 5,027,587 (3,680,684) 35,947,904
Total Increase (Decrease) 5,297,180 (3,680,684) 35,947,904
Net Assets
Beginning of period.................................... -- 83,262,822 47,314,918
End of period (including undistributed net
investment income as set forth below)............... $5,297,180 $79,582,138 $83,262,822
Undistributed Net Investment Income ............... $ 5,224 $ -- $ --
<CAPTION>
Real Estate SmallCap
Account Account
Six Months Period Six Months Period
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1999 1998(b) 1999 1998(c)
<S> <C> <C> <C> <C>
Operations
Net investment income.................................. $ 282,152 $ 386,777 $ 235 $ 1,616
Net realized gain (loss) from investment and
foreign currency transactions....................... (475,402) (171,901) 1,173,237 (71,160)
Change in unrealized appreciation/depreciation
of investments ..................................... 665,614 (857,850) 1,627,331 (1,593,746)
Net Increase (Decrease) in Net Assets
Resulting from Operations 472,364 (642,974) 2,800,803 (1,663,290)
Dividends to Shareholders from Net Investment Income... (46,580) (340,132) (463) (1,161)
Capital Share Transactions (Note 5)
Shares sold............................................ 690,474 11,895,162 3,475,118 13,867,996
Shares issued in reinvestment of dividends
and distributions................................... 8,180 54,131 163 362
Shares redeemed........................................ (165,170) (57,431) (298,353) (109,602)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 533,484 11,891,862 3,176,928 13,758,756
Total Increase (Decrease) 959,268 10,908,756 5,977,268 12,094,305
Net Assets
Beginning of period.................................... 10,908,756 -- 12,094,305 --
End of period (including undistributed net
investment income as set forth below)............... $11,868,024 $10,908,756 $18,071,573 $12,094,305
Undistributed Net Investment Income ............... $ 282,217 $ 46,645 $ 227 $ 455
<FN>
(a) Period from April 22, 1999 (date operations commenced) through June 30,
1999.
(b) Period from April 23, 1998 (date operations commenced) through December 31,
1998.
(c) Period from April 9, 1998 (date operations commenced) through December 31,
1998.
</FN>
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
SmallCap Growth SmallCap Value
Account Account
Six Months Period Six Months Period
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1999 1998(a) 1999 1998(b)
<S> <C> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ (30,012) $ (30,249) $ 30,688 $ 29,302
Net realized gain (loss) from investment and
foreign currency transactions....................... 869,398 (739,178) (193,823) (499,000)
Change in unrealized appreciation/depreciation of
investments......................................... 1,800,706 1,311,277 924,641 (313,166)
future contracts.................................... -- -- -- --
Net Increase (Decrease) in Net Assets
Resulting from Operations 2,640,092 541,850 761,506 (782,864)
Dividends to Shareholders from Net Investment Income... -- -- (1,815) (27,033)
Capital Share Transactions (Note 5)
Shares sold............................................ 2,711,193 8,080,818 1,370,355 7,875,091
Shares issued in reinvestment of dividends
and distributions................................... -- -- 765 10,433
Shares redeemed........................................ (336,077) (160,040) (163,907) (180,241)
Net Increase in Net Assets from
Capital Share Transactions 2,375,116 7,920,778 1,207,213 7,705,283
Total Increase 5,015,208 8,462,628 1,966,904 6,895,386
Net Assets
Beginning of period.................................... 8,462,628 -- 6,895,386 --
End of period (including undistributed net
investment income as set forth below)............... $13,477,836 $8,462,628 $8,862,290 $6,895,386
Undistributed Net Investment Income.................... $ -- $ -- $ 31,142 $ 2,269
<CAPTION>
Stock Index 500 Utilities
Account Account
Period Six Months Period
Ended Ended Ended
June 30, June 30, December 31,
1999(c) 1999 1998(a)
<S> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ 41,329 $ 273,581 $ 289,426
Net realized gain (loss) from investment and
foreign currency transactions....................... 4,720 102,151 (15,441)
Change in unrealized appreciation/depreciation of
investments......................................... 193,563 868,291 1,578,176
future contracts.................................... 31,604 -- --
Net Increase (Decrease) in Net Assets
Resulting from Operations 271,216 1,244,023 1,852,161
Dividends to Shareholders from Net Investment Income... -- -- (284,024)
Capital Share Transactions (Note 5)
Shares sold............................................ 15,237,415 6,528,044 17,143,864
Shares issued in reinvestment of dividends
and distributions................................... -- -- 108,024
Shares redeemed........................................ (4,193) (389,016) (521,951)
Net Increase in Net Assets from
Capital Share Transactions 15,233,222 6,139,028 16,729,937
Total Increase 15,504,438 7,383,051 18,298,074
Net Assets
Beginning of period.................................... -- 18,298,074 --
End of period (including undistributed net
investment income as set forth below)............... $15,504,438 $25,681,125 $18,298,074
Undistributed Net Investment Income ............... $ 41,329 $ 278,983 $ 5,402
<FN>
(a) Period from April 2, 1998 (date operations commenced) through December 31,
1998.
(b) Period from April 16, 1998 (date operations commenced) through December 31,
1998.
(c) Period from April 22, 1999 (date operations commenced) through June 30,
1999.
</FN>
</TABLE>
NOTES TO FINANCIAL STATEMENTS
(unaudited)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Aggressive Growth Account
Asset Allocation Account
Balanced Account
Blue Chip Account
Bond Account
Capital Value Account
Government Securities Account
Growth Account
High Yield Account
International Account
International SmallCap Account
LargeCap Growth Account
MicroCap Account
MidCap Account
MidCap Growth Account
MidCap Value Account
Money Market Account
Real Estate Account
SmallCap Account
SmallCap Growth Account
SmallCap Value Account
Stock Index 500 Account
Utilities Account
Note 1 -- Significant Accounting Policies
Principal Variable Contracts Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended, as an open-end diversified
management investment company and operates in the mutual fund industry. The Fund
currently consists of 23 accounts (Aggressive Growth Account, Asset Allocation
Account, Balanced Account, Blue Chip Account, Bond Account, Capital Value
Account, Government Securities Account, Growth Account, High Yield Account,
International Account, International SmallCap Account, LargeCap Growth Account,
MicroCap Account, MidCap Account, MidCap Growth Account, MidCap Value Account,
Money Market Account, Real Estate Account, SmallCap Account, SmallCap Growth
Account, SmallCap Value Account, Stock Index 500 Account and Utilities Account)
(known as the "Accounts").
During April 1999, Principal Life Insurance Company (See Note 3) made initial
purchases of Capital Shares of four new accounts as follows:
Date Capital
Operations Shares
Commenced Account Name Purchased
April 15, 1999 Blue Chip Account 500,000
April 15, 1999 LargeCap Growth Account 500,000
April 22, 1999 MidCap Value Account 500,000
April 22, 1999 Stock Index 500 Account 1,000,000
The Accounts (with the exception of the Money Market Account) value securities
for which market quotations are readily available at market value, which is
determined using the last reported sale price or, if no sales are reported, as
is regularly the case for some securities traded over-the-counter, the last
reported bid price. When reliable market quotations are not considered to be
readily available, which may be the case, for example, with respect to certain
debt securities, preferred stocks and foreign securities, the investments are
valued by using prices provided by market makers or estimates of market values
obtained from yield data and other factors relating to instruments or securities
with similar characteristics in accordance with procedures established in good
faith by the Fund's Board of Directors. Securities with remaining maturities of
60 days or less are valued at amortized cost, which approximates market.
Generally, trading in foreign securities is substantially completed each day at
various times prior to the close of the New York Stock Exchange. The values of
such securities used in computing net asset value per share are usually
determined as of such times. Occasionally, events which affect the values of
such securities and foreign currency exchange rates may occur between the times
at which they are generally determined and the close of the New York Stock
Exchange and would therefore not be reflected in the computation of each
account's net asset value. If events materially affecting the value of such
securities occur during such period, then these securities are valued at their
fair value as determined in good faith by Principal Management Corporation (the
"Manager") under procedures established and regularly reviewed by the Fund's
Board of Directors. To the extent each account invests in foreign securities
listed on foreign exchanges which trade on days on which an account does not
determine its net asset value, for example Saturdays and other customary
national U.S. holidays, each account's net asset value could be significantly
affected on days when shareholders do not have access to the account.
Certain securities issued by companies in emerging market countries may have
more than one quoted valuation at any given point in time, sometimes referred to
as a "local" price and a "premium" price. The premium price is often a
negotiated price which may not consistently represent a price at which a
specific transaction can be effected. It is the policy of the International and
International SmallCap Accounts to value such securities at prices at which it
is expected those shares may be sold, and the Manager or any sub-advisor is
authorized to make such determinations subject to such oversight by the Fund's
Board of Directors as may occasionally be necessary.
The Money Market Account values its securities at amortized cost, which
approximates market. Under the amortized cost method, a security is valued by
applying a constant yield to maturity of the difference between the principal
amount due at maturity and the cost of the security to the account.
With respect to the International and International SmallCap Accounts, the value
of foreign securities in foreign currency amounts is expressed in U.S. dollars
at the closing daily rate of exchange. The identified cost of the portfolio
holdings is translated at approximate rates prevailing when acquired. Income and
expense amounts are translated at approximate rates prevailing when received or
paid, with daily accruals of such amounts reported at approximate rates
prevailing at the date of valuation. Since the carrying amount of the foreign
securities is determined based on the exchange rate and market values at the
close of the period, it is not practicable to isolate that portion of the
results of operations arising as a result of changes in the foreign exchange
rates from the fluctuations arising from changes in the market prices of
securities during the period.
The Accounts record investment transactions generally one day after the trade
date, except for short-term investment transactions which are recorded generally
on the trade date. The identified cost basis has been used in determining the
net realized gain or loss from investment transactions and unrealized
appreciation or depreciation of investments. The Accounts record dividend income
on the ex-dividend date, except dividend income from foreign securities whereby
the ex-dividend date has passed; such dividends are recorded as soon as the
Accounts are informed of the ex-dividend date. Interest income is recognized on
an accrual basis.
With respect to the International and International SmallCap Accounts, reported
net realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between trade and settlement dates
on security transactions, and the difference between the amount of dividends and
foreign withholding taxes recorded on the books and the U.S. dollar equivalent
of the amounts actually received or paid. Net unrealized appreciation or
depreciation on translation of assets and liabilities in foreign currencies
arise from changes in the exchange rate relating to assets and liabilities,
other than investments in securities, purchased and held in non-U.S. denominated
currencies.
The Accounts may, pursuant to an exemptive order issued by the Securities and
Exchange Commission, transfer uninvested funds into a joint trading account. The
order permits the Accounts' cash balances to be deposited into a single joint
account along with the cash of other registered investment companies managed by
Principal Management Corporation. These balances may be invested in one or more
short-term instruments.
With respect to the Money Market Account, all net investment income and any
realized gains and losses from investment transactions are declared as dividends
daily to shareholders of record as of that day. Dividends and distributions to
shareholders of the other accounts are recorded on the ex-dividend date.
Dividends and distributions to shareholders from net investment income and net
realized gain from investments and foreign currency transactions are determined
in accordance with federal income tax regulations, which may differ from
generally accepted accounting principles. Permanent book and tax basis
differences are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Reclassifications made for the High Yield Account, the International Account and
the SmallCap Growth Account for the period ended December 31, 1998 aggregated
$66,211, $61,967 and $30,249, respectively. Other reclassifications made for the
period ended December 31, 1998 were not material.
Dividends and distributions which exceed net investment income and net realized
capital gains for financial reporting purposes, but not for tax purposes, are
reported as dividends in excess of net investment income or distributions in
excess of net realized capital gains. To the extent distributions exceed current
and accumulated earnings and profits for federal income tax purposes, they are
reported as tax return of capital distributions.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Note 2 -- Federal Income Taxes
No provision for federal income taxes is considered necessary because each
account is qualified as a "regulated investment company" under the Internal
Revenue Code and intends to distribute each year substantially all of its net
investment income and realized capital gains to shareholders. The cost of
investments for federal income tax reporting purposes approximates that used for
financial reporting purposes.
Note 3 -- Management Agreement and Transactions With Affiliates
The Fund has agreed to pay investment advisory and management fees to Principal
Management Corporation (wholly owned by Princor Financial Services Corporation,
a subsidiary of Principal Financial Services, Inc.) computed at an annual
percentage rate of each account's average daily net assets. The annual rate used
in this calculation for the Accounts is as follows:
Net Assets Value of Accounts
(in millions)
----------------------------------------
First Next Next Next Over
$100 $100 $100 $100 $400
----- ----- ----- ----- -----
Aggressive Growth Account .80% .75% .70% .65% .60%
Asset Allocation Account .80 .75 .70 .65 .60
Balanced Account .60 .55 .50 .45 .40
Bond Account .50 .45 .40 .35 .30
Capital Value Account .50 .45 .40 .35 .30
Government Securities Account .50 .45 .40 .35 .30
Growth Account .50 .45 .40 .35 .30
High Yield Account .60 .55 .50 .45 .40
International Account .75 .70 .65 .60 .55
International SmallCap Account 1.20 1.15 1.10 1.05 1.00
MicroCap Account 1.00 .95 .90 .85 .80
MidCap Account .65 .60 .55 .50 .45
MidCap Growth Account .90 .85 .80 .75 .70
Money Market Account .50 .45 .40 .35 .30
Real Estate Account .90 .85 .80 .75 .70
SmallCap Account .85 .80 .75 .70 .65
SmallCap Growth Account 1.00 .95 .90 .85 .80
SmallCap Value Account 1.10 1.05 1.00 .95 .90
Utilities Account .60 .55 .50 .45 .40
Net Assets Value of Accounts
(in millions)
-----------------------------------------
First Next Next Next Over
$250 $250 $250 $250 $1,000
----- ----- ----- ----- ------
Blue Chip Account .60% .55% .50% .45% .40%
LargeCap Growth Account 1.10 1.05 1.00 .95 .90
MidCap Value Account 1.05 1.00 .95 .90 .85
Overall Fee
-----------
Stock Index 500 Account .35%
The Manager voluntarily waives a portion of its fee for LargeCap Growth Account,
MicroCap Account, MidCap Growth Account, MidCap Value Account, SmallCap Growth
Account, SmallCap Value Account and Stock Index 500 Account. The waivers are in
amounts that maintain total operating expenses within certain limits. The limits
are expressed as a percentage of average daily net assets attributable to each
account on an annualized basis during the reporting period. The amount waived
and the operating expense limit, which was maintained at or below that shown,
are as follows:
Amount Waived
-------------
Periods Ended Expense
June 30, 1999 Limit
------------- -------
LargeCapGrowth Account $ 858 1.20%
MicroCap Account 9,530 1.06
MidCap Growth Account 11,073 .96
MidCap Value Account 396 1.20
SmallCap Growth Account 7,025 1.06
SmallCap Value Account 9,506 1.16
Stock Index 500 Account 5,016 .40
The Manager intends to continue its voluntary waiver and, if necessary, pay
expenses normally payable by the accounts through December 31, 1999.
No brokerage commissions were paid by the Fund to Princor Financial Services
Corporation during the periods. Brokerage commissions were paid to other
affiliates by the following accounts:
Periods Ended Periods Ended
June 30, 1999 December 31, 1998
------------- -----------------
Aggressive Growth Account $49,151 $64,877
Asset Allocation Account 12,653 23,297
Balanced Account 4,795 8,115
Blue Chip Account 4,845 N/A
Capital Value Account 22,229 8,995
Growth Account 20,123 14,714
International Account 47,179 52,568
International SmallCap Account 14,237 7,121
LargeCap Growth Account 179 N/A
MicroCap Account 1,860 3,594
MidCap Account 7,907 3,928
MidCap Growth Account 1,539 4,141
MidCap Value Account 5,816 N/A
Real Estate Account 5,215 6,955
SmallCap Account 1,160 640
SmallCap Growth Account 510 325
SmallCap Value Account 366 158
Stock Index 500 Account 23 N/A
Utilities Account 1,570 N/A
All of the shares of the Fund are owned by Principal Life Insurance Company
and/or one or more Separate Accounts sponsored by Principal Life Insurance
Company.
Note 4 -- Investment Transactions
For the periods ended June 30, 1999, the cost of investment securities purchased
and proceeds from investment securities sold (not including short-term
investments and U.S. government securities) by the Accounts were as follows:
Purchases Sales
------------ ------------
Aggressive Growth Account $168,715,099 $143,946,779
Asset Allocation Account 43,596,206 46,069,732
Balanced Account 38,510,790 21,430,191
Blue Chip Account 5,103,187 93,704
Bond Account 44,458,406 31,272,124
Capital Value Account 86,630,192 65,911,613
Government Securities Account 13,822,303 7,605,072
Growth Account 57,246,475 23,957,165
High Yield Account 6,460,515 6,248,384
International Account 53,255,975 51,163,084
International SmallCap Account 16,013,830 13,922,631
LargeCap Growth Account 4,607,102 79,631
MicroCap Account 2,688,023 1,647486
MidCap Account 46,340,410 46,279,302
MidCap Growth Account 5,377,271 3,286,478
MidCap Value Account 5,714,650 826,503
Real Estate Account 4,505,297 3,978,542
SmallCap Account 8,611,381 5,134,402
SmallCap Growth Account 9,131,311 6,403,426
SmallCap Value Account 4,648,820 3,428,372
Stock Index 500 Account 14,188,950 90,071
Utilities Account 7,802,234 2,252,162
At June 30, 1999, net unrealized appreciation (depreciation) of investments by
the Accounts was composed of the following:
<TABLE>
<CAPTION>
Net Unrealized
Gross Unrealized Appreciation
(Depreciation)
Appreciation (Depreciation) of Investments
------------ -------------- --------------
<S> <C> <C> <C>
Aggressive Growth Account $ 66,748,460 $ (2,604,067) $64,144,393
Asset Allocation Account 12,094,763 (2,447,214) 9,647,549
Balanced Account 32,994,503 (7,206,115) 25,788,388
Blue Chip Account 286,606 (108,614) 177,992
Bond Account 716,316 (3,891,382) (3,175,066)
Capital Value Account 100,523,680 (12,275,076) 88,248,604
Government Securities Account 1,773,787 (2,011,676) (237,889)
Growth Account 104,380,498 (7,660,531) 96,719,967
High Yield Account 202,108 (1,230,361) (1,028,253)
International Account 24,278,491 (12,924,200) 11,354,291
International SmallCap Account 3,335,933 (1,158,623) 2,177,310
LargeCap Growth Account 383,253 (63,101) 320,152
MicroCap Account 1,101,469 (707,209) 394,260
MidCap Account 68,836,918 (22,071,860) 46,765,058
MidCap Growth Account 1,673,570 (521,773) 1,151,797
MidCap Value Account 357,358 (147,352) 210,006
Real Estate Account 440,814 (633,050) (192,236)
SmallCap Account 2,423,388 (2,389,803) 33,585
SmallCap Growth Account 3,619,918 (507,935) 3,111,983
SmallCap Value Account 1,194,788 (583,313) 611,475
Stock Index 500 Account 644,732 (419,565) 225,167
Utilities Account 3,328,618 (882,151) 2,446,467
</TABLE>
The Accounts may trade portfolio securities on a "to-be-announced" (TBA) basis.
In a TBA transaction, the account commits to purchase or sell securities for
which all specific information is not known at the time of the trade. Securities
purchased on a TBA basis are not settled until they are delivered to the
account, normally 15 to 30 days later. These transactions are subject to market
fluctuations and their current value is determined in the same manner as for
other portfolio securities. As of June 30, 1999, the Government Securities
Account had a TBA purchase commitment involving a security with a face amount of
$2,000,000, cost of $1,851,250 and market value of $1,873,750. The account has
set aside investment securities and other assets in excess of the commitment to
serve as collateral.
At June 30, 1999, the Accounts held the following securities which were
purchased in private placement transactions and may require registration, or an
exemption therefrom, in order to effect a sale in the ordinary course of
business.
<TABLE>
<CAPTION>
Value at Value as a
Date of June 30, Percentage
Security Description Acquisition Cost 1999 of Net Assets
------------------------------------------ ----------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Asset Allocation AESOP Funding II LLC,
Account Collateralized Mortgage Obligation 5/5/98 $ 503,008 $ 502,830 0.57%
DSM NV Notes 5/6/99 198,894 197,320 0.22
Israel Electric Corp. Senior Notes 12/11/96 249,525 237,914 0.27
Liberty Mutual Surplus Notes 4/29/98 275,913 260,152 0.30
Monsanto Co. Notes 12/4/98 249,338 235,668 0.27
Oil Enterprises Ltd. Global Bonds 6/24/98 231,400 220,108 0.25
Prudential Insurance Co. Senior Notes 7/16/98 298,674 287,324 0.33
Wellsford Real Properties, Inc. 6/2/97 80,102 83,603 0.09
2,024,919 2.30
Bond Account AES Ironwood LLC Senior Secured Bonds 6/18/99 3,000,000 3,013,170 2.37
CE Generation LLC Senior Secured Notes 2/24/99 1,000,000 968,930 0.76
Equistar Chemicals LP Senior Notes 6/25/99 2,517,625 2,526,768 1.99
International Game Technology Senior Notes 5/11/99 1,979,480 1,962,500 1.54
John Hancock Mutual Life Insurance Co.
Surplus Notes 1/8/97 958,440 989,812 0.78
Lear Corp. Senior Notes 5/14/99 989,850 975,283 0.77
Orix Credit Alliance Short-Term Notes 2/26/99 3,000,000 2,971,551 2.34
Raytheon Co. Notes 12/9/98 1,991,740 1,801,276 1.42
1/15/99 1,002,710 900,638 0.71
16,109,928 12.68
High Yield Account California Steel Industries, Inc.
Senior Subordinated Notes 3/30/99 125,000 121,719 0.87
Charter Communications Holdings LLC
Senior Notes 3/12/99 498,665 478,750 3.44
Echostar DBS Corp. Senior Notes 1/19/99 500,000 508,750 3.65
Equistar Chemicals LP Senior Notes 2/9/99 499,960 505,353 3.63
Integrated Electrical Services Senior
Subordinated Notes 1/25/99 124,000 123,125 0.89
3/3/99 376,406 369,375 2.65
International Game Technology Senior Notes 5/11/99 297,159 294,750 2.12
Lear Corp. Senior Notes 6/18/99 240,205 240,736 1.73
Mercury Financial Services Corp. Senior Notes 4/30/99 288,000 285,000 2.05
Vail Resorts, Inc. Senior Subordinated Notes 5/6/99 300,000 291,750 2.10
York Power Funding Ltd. Senior Secured Bonds 7/31/98 100,000 101,500 0.73
3,320,808 23.86
International SmallCap Neopost SA 2/23/99 74,736 105,577 0.58
Account 3/31/99 37,197 53,368 0.29
5/4/99 23,982 27,380 0.15
6/04/99 48,986 53,369 0.29
239,694 1.31
</TABLE>
The Accounts' investments are with various issuers in various industries. The
Schedules of Investments contained herein summarize concentrations of credit
risk by issuer and industry.
Note 5 -- Capital Share Transactions
Transactions in Capital Shares by account were as follows:
<TABLE>
<CAPTION>
Aggressive Asset Allocation Balanced Blue Chip
Growth Account Account Account Account
-------------- ---------------- ---------- ---------
<S> <C> <C> <C> <C>
Periods Ended June 30, 1999:
Shares sold................................... 2,059,130 345,265 1,343,865 508,287
Shares issued in reinvestment of
dividends and distributions.................. 45,951 25,565 114,498 --
Shares redeemed............................... (483,625) (571,300) (493,779) --
Net Increase (Decrease) 1,621,456 (200,470) 964,584 508,287
Year Ended December 31, 1998:
Shares sold................................... 4,174,437 1,198,581 3,640,419 N/A
Shares issued in reinvestment of
dividends and distributions.................. 633,179 283,810 732,853 N/A
Shares redeemed............................... (1,736,629) (1,080,275) (780,615) N/A
Net Increase 3,070,987 402,116 3,592,657
<CAPTION>
Bond Capital Government Growth
Account Value Account Securities Account Account
---------- ------------- ------------------ ----------
<S> <C> <C> <C> <C>
Period Ended June 30, 1999:
Shares sold................................... 1,274,947 754,426 1,441,358 1,828,440
Shares issued in reinvestment of
dividends and distributions.................. 10,920 132,603 14,096 65,061
Shares redeemed............................... (578,939) (307,126) (1,108,353) (198,289)
Net Increase 706,928 579,903 347,101 1,695,212
Year Ended December 31, 1998:
Shares sold................................... 3,555,266 2,141,605 4,214,130 3,240,321
Shares issued in reinvestment of
dividends and distributions.................. 520,091 547,565 643,690 253,331
Shares redeemed............................... (885,965) (558,554) (820,547) (562,472)
Net Increase 3,189,392 2,130,616 4,037,273 2,931,180
<CAPTION>
High Yield International International LargeCap
Account Account SmallCap Account Growth Account
---------- ------------- ---------------- --------------
<S> <C> <C> <C> <C>
Periods Ended June 30, 1999:
Shares sold................................... 4,543 615,887 277,635 503,238
Shares issued in reinvestment of
dividends and distributions.................. -- 140,206 -- --
Shares redeemed............................... (26,444) (405,510) (29,697) --
Net Increase (Decrease) (21,901) 350,583 247,938 503,238
Periods Ended December 31, 1998:
Shares sold................................... 59,266 1,812,604 1,487,078 N/A
Shares issued in reinvestment of
dividends and distributions.................. 155,723 526,699 1,240 N/A
Shares redeemed............................... (251,388) (770,282) (35,567) N/A
Net Increase (Decrease) (36,399) 1,569,021 1,452,751
<CAPTION>
MicroCap MidCap MidCap MidCap Value
Account Account Growth Account Account
--------- ---------- -------------- ------------
<S> <C> <C> <C> <C>
Periods Ended June 30, 1999:
Shares sold................................... 75,713 261,616 244,765 5,027,587
Shares issued in reinvestment of
dividends and distributions................. -- 167,402 -- --
Shares redeemed............................... (15,744) (525,317) (35,974) --
Net Increase (Decrease) 59,969 (96,299) 208,791 5,027,587
Periods Ended December 31, 1998:
Shares sold................................... 685,987 1,146,275 902,426 N/A
Shares issued in reinvestment of
dividends and distributions.................. 685 488,971 -- N/A
Shares redeemed............................... (28,122) (419,667) (18,501) N/A
Net Increase 658,550 1,215,579 883,925
<CAPTION>
Money Real Estate SmallCap SmallCap
Market Account Account Account Growth Account
-------------- ------------- ---------- --------------
<S> <C> <C> <C> <C>
Period Ended June 30, 1999:
Shares sold................................... 44,256,984 76,600 413,922 245,568
Shares issued in reinvestment of
dividends and distributions.................. 1,716,220 937 20 --
Shares redeemed............................... (49,653,888) (18,231) (35,341) (29,796)
Net Increase (Decrease) (3,680,684) 59,306 378,601 215,772
Periods Ended December 31, 1998:
Shares sold................................... 130,878,349 1,203,458 1,487,369 856,088
Shares issued in reinvestment of
dividends and distributions.................. 3,052,413 6,110 46 --
Shares redeemed............................... (97,982,858) (6,214) (14,091) (18,461)
Net Increase 35,947,904 1,203,354 1,473,324 837,627
<CAPTION>
SmallCap Stock Index Utilities
Value Account 500 Account Account
------------- ----------- ----------
<S> <C> <C> <C>
Periods Ended June 30, 1999:
Shares sold................................... 164,827 1,535,681 601,904
Shares issued in reinvestment of
dividends and distributions.................. 94 -- --
Shares redeemed............................... (19,548) (427) (35,695)
Net Increase 145,373 1,535,254 566,209
Periods Ended December 31, 1998:
Shares sold................................... 847,411 N/A 1,715,892
Shares issued in reinvestment of
dividends and distributions.................. 1,312 N/A 10,086
Shares redeemed............................... (22,210) N/A (51,273)
Net Increase 826,513 1,674,705
</TABLE>
Note 6 -- Line of Credit
The Accounts (with the exception of Blue Chip Account, LargeCap Growth Account,
MidCap Value Account and Stock Index 500 Account) participate with other funds
and portfolios managed by Principal Management Corporation in an unsecured joint
line of credit with a bank, which allows them to borrow up to $60,000,000,
collectively. Borrowings are made solely to facilitate the handling of unusual
and/or unanticipated short-term cash requirements. Interest is charged to each
participant, based on its borrowings, at a rate equal to the Fed Funds Rate plus
.50%. Additionally, a commitment fee is charged at the annual rate of .08% on
the average unused portion of the line of credit. The commitment fee is
allocated among the participating funds, accounts and portfolios in proportion
to their average net assets during each quarter. At June 30, 1999, the Accounts
had no outstanding borrowings under the line of credit.
Note 7 -- Futures Contracts
The Accounts (with the exception of Capital Value Account, Government Securities
Account and Money Market Account) may enter into futures contracts as a hedge
against changes in market conditions. Initial margin deposits are made by cash
deposits or segregation of specific securities as may be required by the
exchange on which the transaction was conducted. Pursuant to the contracts, an
Account agrees to receive from or pay to the broker, an amount of cash equal to
the daily fluctuation in the value of the contract. Such receipts or payments
are known as "variation margin" and are recorded by the Account as a variation
margin receivable or payable on futures contracts. During the period the futures
contracts are open, daily changes in the value of the contracts are recognized
as unrealized gains or losses. These unrealized gains or losses are included in
the net unrealized appreciation/depreciation of investments on the balance
sheet. When the contracts are closed, the Account recognizes a realized gain or
loss equal to the difference between the proceeds from, or cost of, the closing
transaction and the Account's cost basis in the contract. As of June 30, 1999,
there were no realized gains or losses related to the futures contracts.
Open Futures Contracts at June 30, 1999 were as follows:
<TABLE>
<CAPTION>
Opening Value at Net Unrealized
Number of Contract Market June 30, Appreciation/
Contracts Type Value 1999 (Depreciation)
--------- -------- ------- -------- --------------
<S> <C> <C> <C> <C> <C>
Stock Index 500 Account 3 S&P 500 Stock Index $1,004,671 $1,036,275 $31,604
September 1999 Futures
</TABLE>
An Account's use of futures contracts may expose the Account to certain risks.
Risks include the possibility of an illiquid market and the change in the value
of the contracts may not correlate with changes in the value of the securities
being hedged. Unexpected adverse price movements could cause the Account's
hedging strategy to be unsuccessful and result in losses.
SCHEDULES OF INVESTMENTS
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
AGGRESSIVE GROWTH ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (97.93%)
Advertising (1.11%)
Omnicom Group, Inc. 40,600 $ 3,248,000
Aircraft & Parts (7.16%)
Gulfstream Aerospace Corp. 87,900(a) 5,938,744
Textron, Inc. 45,400 3,736,987
United Technologies Corp. 156,800 11,240,600
20,916,331
Bakery Products (0.46%)
Keebler Foods Co. 43,800(a) 1,330,424
Beverages (1.09%)
Anheuser-Busch Cos., Inc. 24,100 1,709,594
Coca-Cola Enterprises 47,700 1,466,775
3,176,369
Cable & Other Pay TV Services (1.87%)
Comcast Corp. 119,000 4,574,062
Comcast Corp., Class A 20,700 741,319
MediaOne Group, Inc. 2,000(a) 148,750
5,464,131
Combination Utility Services (0.28%)
Montana Power Co. 11,700 824,850
Commercial Banks (1.15%)
Bank of New York Co., Inc. 91,600 3,360,575
Communications Equipment (1.42%)
Ciena Corp. 9,200(a) 277,725
Juniper Networks, Inc. 7,900(a) 1,177,100
Lucent Technologies, Inc. 40,100 2,704,244
4,159,069
Communications Services, NEC (0.70%)
Crown Castle International Corp. 68,400(a) 1,423,575
L-3 Communications Holdings, Inc. 13,000(a) 628,062
2,051,637
Computer & Data Processing
Services (8.19%)
America Online, Inc. 32,000(a) 3,536,000
At Home Corp. 13,600(a) 733,550
BMC Software, Inc. 21,400(a) 1,155,600
Compuware Corp. 40,100(a) 1,275,681
Microsoft Corp. 149,500(a) 13,483,031
New Era of Networks, Inc. 24,200(a) 1,063,287
Novell, Inc. 70,700(a) 1,873,550
Oracle Systems Corp. 20,550(a) 762,919
23,883,618
Computer & Office Equipment (6.89%)
Cisco Systems, Inc. 176,650(a) 11,393,925
Pitney Bowes, Inc. 98,400 6,322,200
Quantum Corp. 51,300(a) 1,237,612
Sun Microsystems, Inc. 16,900(a) 1,163,988
20,117,725
Consumer Products (1.10%)
Philip Morris Cos., Inc. 80,200 3,223,037
Drugs (13.18%)
American Home Products Corp. 22,700 $ 1,305,250
Amgen, Inc. 60,700(a) 3,695,112
Bristol-Myers Squibb Co. 95,500 6,726,781
Johnson & Johnson 28,600 2,802,800
Lilly (Eli) & Co. 20,000 1,432,500
Merck & Co., Inc. 93,900 6,948,600
Pfizer, Inc. 46,300 5,081,425
Pharmacia & Upjohn, Inc. 21,900 1,244,194
Schering-Plough Corp. 60,800 3,222,400
Warner-Lambert Co. 87,200 6,049,500
38,508,562
Eating & Drinking Places (0.27%)
Brinker International, Inc. 29,000(a) 788,438
Electrical Goods (0.18%)
WESCO International, Inc. 26,200(a) 537,100
Electronic Components &
Accessories (3.31%)
Intel Corp. 130,800 7,782,600
Texas Instruments 13,000 1,885,000
9,667,600
Electronic Distribution
Equipment (4.32%)
General Electric Co. 111,800 12,633,400
Family Clothing Stores (1.56%)
Gap, Inc. 90,450 4,556,419
Fire, Marine & Casualty Insurance (1.24%)
Berkshire Hathaway, Inc., Class A 9(a) 620,100
Berkshire Hathaway, Inc., Class B 1,339(a) 3,011,411
3,631,511
General Industrial Machinery (7.01%)
Tyco International Ltd. 216,100 20,475,475
Lumber & Other Building
Materials (2.64%)
Home Depot, Inc. 119,800 7,719,613
Management & Public
Relations (0.39%)
Nielsen Media Research 38,700(a) 1,131,975
Measuring & Controlling Devices (0.60%)
Uniphase Corp. 10,600(a) 1,759,600
Men's & Boys' Clothing Stores (1.28%)
Abercrombie & Fitch Co. 77,900(a) 3,739,200
Miscellaneous Shopping Goods
Stores (0.73%)
Office Depot, Inc. 97,150(a) 2,143,372
Miscellaneous Transportation (0.41%)
General Motors Corp., Class H 21,500(a) 1,209,375
Mortgage Bankers & Brokers (0.01%)
E-Loan, Inc. 500(a) 19,281
Motion Picture Production (4.32%)
AT&T Corp. - Liberty Media Group,
Class A 139,500(a) $ 5,126,625
Time Warner, Inc. 101,800 7,482,300
12,608,925
Motorcycles, Bicycles, & Parts (0.04%)
Harley Davidson, Inc. 2,000 108,750
Personal Credit Institutions (1.80%)
American Express Co. 40,300 5,244,038
Petroleum Refining (0.37%)
Exxon Corp. 14,200 1,095,175
Public Warehousing & Storage (2.01%)
Costco Cos., Inc. 73,400(a) 5,876,588
Radio & Television Broadcasting (4.81%)
American Tower Corp., Class A 78,600 1,886,400
Chancellor Media Corp. 52,600(a) 2,899,575
Clear Channel Communications 134,400(a) 9,265,200
14,051,175
Radio, Television, & Computer
Stores (0.19%)
Best Buy, Inc. 8,100(a) 546,750
Savings Institutions (1.62%)
Citigroup, Inc. 99,800 4,740,500
Search & Navigation Equipment (1.38%)
Litton Industries, Inc. 27,500(a) 1,973,125
Loral Space & Communications Ltd. 114,500(a) 2,061,000
4,034,125
Soap, Cleaners, & Toilet Goods (1.18%)
Procter & Gamble Co. 38,600 3,445,050
Special Industry Machinery (1.00%)
Applied Materials, Inc. 39,500(a) 2,918,063
Telephone Communication (8.04%)
AT&T Corp. 85,750 4,785,922
Bell Atlantic Corp. 66,400 4,340,900
MCI Worldcom, Inc. 108,400(a) 9,349,500
Motorola, Inc. 52,900 5,012,275
23,488,597
Variety Stores (2.00%)
Wal-Mart Stores, Inc. 121,100 5,843,075
Women's Accessory & Specialty
Stores (0.62%)
Intimate Brands, Inc. 38,325 1,815,647
Total Portfolio Investments (97.93%) 286,093,145
Cash and receivables, net of liabilities (2.07%) 6,036,725
Total Net Assets (100.00%) $292,129,870
(a) Non-income producing security - No dividend paid during the past twelve
months.
ASSET ALLOCATION ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (58.17%)
Advertising (0.58%)
Omnicom Group, Inc. 2,600 $ 208,000
R.H. Donnelley Corp. 15,220 297,741
505,741
Aerospace Industries (0.30%)
Cordant Technologies, Inc. 5,900 266,606
Air Transportation, Scheduled (0.55%)
British Airways PLC ADR 1,400 100,013
Continental Airlines, Inc. 4,200(a) 158,025
KLM Royal Dutch Airlines 7,737 220,988
479,026
Aircraft & Parts (2.20%)
Gulfstream Aerospace Corp. 8,000(a) 540,500
Indigo Aviation AB Sponsored ADR 12,000(a) 79,500
Northrop Grumman Corp. 400 26,525
Textron, Inc. 3,000 246,937
United Technologies Corp. 14,500 1,039,469
1,932,931
Bakery Products (0.10%)
Keebler Foods Co. 2,800(a) 85,050
Beverages (0.39%)
Anheuser-Busch Cos., Inc. 1,600 113,500
Bass PLC ADR 8,928 133,362
Coca-Cola Enterprises 3,100 95,325
342,187
Blast Furnace & Basic Steel
Products (0.14%)
Australian National Industries 8,960 26,880
British Steel PLC ADR 3,500 91,219
118,099
Business Credit Institutions (0.05%)
First Sierra Financial, Inc. 1,700(a) 42,500
Cable & Other Pay TV Services (0.55%)
Comcast Corp. 10,500 403,594
MediaOne Group, Inc. 600(a) 44,625
WorldGate Communications, Inc. 600(a) 30,750
478,969
Chemicals & Allied Products (1.02%)
Asahi Chemical Industry Co. ADR 4,100 227,296
Bayer AG Sponsored ADR 10,735 446,702
Mitsubishi Chemical Corp. ADR 6,100 211,168
Nova Chemicals Corp. 696 16,225
901,391
Combination Utility Services (0.63%)
Montana Power Co. 3,100 218,550
Nisource, Inc. 13,000 335,562
554,112
Commercial Banks (4.32%)
ABN-AMRO Holdings NV ADR 21,144 $ 466,490
Allied Irish Banks ADR 8,700 237,075
Banco Santander Central Hispano 23,400 248,625
Bank of New York Co., Inc. 8,600 315,512
BankBoston Corp. 7,200 368,100
Barclays PLC ADR 5,571 665,734
Chase Manhattan Corp. 3,680 318,780
Commerzbank AG ADR 3,600 108,964
Fleet Financial Group, Inc. 4,100 181,937
HSBC Holdings ADR 600 218,854
Mellon Bank Corp. 2,900 105,487
National Westminster ADR 1,900 246,881
PNC Financial Corp. 2,700 155,588
Westpac Banking ADR 4,900 163,538
3,801,565
Commercial Printing (0.20%)
DAI Nippon Printing Co. 1,100 175,857
Commercial Sports (0.09%)
Championship Auto Racing Teams, Inc. 2,700(a) 80,831
Communications Equipment (3.52%)
Advanced Fibre Communication 3,000(a) 46,875
Alcatel ADR 74,700 133,362
Associated Group, Inc., Class B 5,000(a) 325,938
Ciena Corp. 2,200(a) 66,412
Commscope, Inc. 1,800(a) 55,350
Ericsson LM Telefon - ADR 1,700 55,994
Harmonic, Inc. 800(a) 45,950
Harris Corp. 4,000 156,750
IPC Information Systems, Inc. 2,200(a) 150,150
Juniper Networks, Inc. 700(a) 104,300
Koninklijke Philips Electronic 8,987 906,564
Lucent Technologies, Inc. 2,600 175,338
Matsushita Electrical ADR 800 158,650
Motorola, Inc. 3,400 322,150
Newbridge Networks Corp. 4,100(a) 117,875
Powerwave Technologies, Inc. 1,100(a) 35,475
Proxim, Inc. 700(a) 40,600
RF Micro Devices, Inc. 2,000(a) 149,250
SBA Communications Corp. 5,500(a) 53,281
3,100,264
Communications Services, NEC (0.43%)
ACTV, Inc. 900(a) 12,488
Crown Castle International Corp. 7,800(a) 162,337
L-3 Communications Holdings, Inc. 2,100(a) 101,456
Leap Wireless International, Inc. 1,000(a) 20,250
Nextel Communications, Inc. 1,700(a) 85,319
381,850
Computer & Data Processing
Services (2.85%)
3COM Corp. 2,900(a) 77,394
America Online, Inc. 2,100(a) 232,050
At Home Corp. 900(a) $ 48,544
Audiocodes Ltd. 3,100(a) 83,700
BMC Software, Inc. 2,000(a) 108,000
Citrix Systems, Inc. 1,500(a) 84,750
Compuware Corp. 3,600(a) 114,525
Informatica Corp. 1,300(a) 46,312
Micromuse, Inc. 1,300(a) 64,837
Microsoft Corp. 9,700(a) 874,819
National Computer Systems, Inc. 2,200 74,250
Network Associates, Inc. 1,400(a) 20,562
New Era of Networks, Inc. 4,600(a) 202,113
Novell, Inc. 4,600(a) 121,900
Oracle Systems Corp. 1,300(a) 48,262
Psinet, Inc. 500(a) 21,875
Rhythms Netconnections, Inc. 100(a) 5,837
Saga Systems, Inc. 11,000(a) 140,250
Sun Microsystems, Inc. 1,100(a) 75,763
USWeb Corp. 1,300(a) 28,844
Verio, Inc. 500(a) 34,750
2,509,337
Computer & Office Equipment (1.83%)
Cisco Systems, Inc. 11,500(a) 741,750
Hitachi Ltd. ADR 2,900 273,869
Pitney Bowes, Inc. 6,400 411,200
Quantum Corp. 3,300(a) 79,612
Sandisk Corp. 2,400(a) 108,000
1,614,431
Concrete, Gypsum & Plaster
Products (0.19%)
Italcementi Fabriche SPA ADR 13,000 164,900
Concrete Work (0.07%)
Pioneer International Ltd. ADR 25,000 63,710
Consumer Products (0.31%)
Philip Morris Cos., Inc. 6,750 271,266
Crude Petroleum & Natural Gas (0.23%)
Societe Generale ADR 3,600 126,895
USX-Marathon Group, Inc. 2,300 74,894
201,789
Department Stores (0.11%)
Marui Corp. ADR 2,800 92,534
Drugs (3.79%)
American Home Products Corp. 1,500 86,250
Amgen, Inc. 3,900(a) 237,412
Bristol-Myers Squibb Co. 6,200 436,712
Johnson & Johnson 1,900 186,200
Lilly (Eli) & Co. 1,300 93,113
Merck & Co., Inc. 6,100 451,400
Novartis Ag Sponsored ADR 2,879 210,195
Novo Nordisk ADR 3,200 171,200
Nycomed Amersham PLC ADR 8,569 305,271
Pfizer, Inc. 3,000 329,250
Pharmacia & Upjohn, Inc. 1,400 79,537
Schering-Plough Corp. 4,000 212,000
Smithkline Beecham PLC ADR 2,200 145,337
Warner-Lambert Co. 5,700 395,438
3,339,315
Eating & Drinking Places (0.51%)
Brinker International, Inc. 1,900(a) $ 51,656
P.F. Chang's China Bistro, Inc. 3,200(a) 69,200
Papa John's International, Inc. 2,000(a) 89,375
Sonic Corp. 7,400(a) 241,425
451,656
Electric Services (0.61%)
Endesa SA ADR 5,600 119,000
EVN AG ADR 3,600 105,288
National Power ADR 3,422 105,227
New Century Energies, Inc. 2,400 93,150
Pinnacle West Capital Corp. 1,800 72,450
Shandong Huaneng Power Co. Ltd. 8,000 41,500
536,615
Electrical Goods (0.04%)
WESCO International, Inc. 1,700(a) 34,850
Electronic Components &
Accessories (1.47%)
Conexant Systems, Inc. 1,200(a) 69,675
Dionex Corp. 3,400(a) 137,700
Intel Corp. 8,500 505,750
Kyocera Corp. ADR 3,000 179,812
Level One Communications 1,200(a) 58,725
Maker Communications, Inc. 200(a) 6,200
Micrel, Inc. 600(a) 44,400
Qlogic Corp. 300(a) 39,600
SDL, Inc. 800(a) 40,850
Texas Instruments, Inc. 800 116,000
Transwitch Corp. 2,100(a) 99,488
1,298,200
Electronic Distribution Equipment (0.94%)
General Electric Co. 7,300 824,900
Family Clothing Stores (0.78%)
Gap, Inc. 5,975 300,991
TJX Cos., Inc. 11,600 386,425
687,416
Farm & Garden Machinery (0.17%)
Case Corp. 3,200 154,000
Finance Services (0.27%)
Nomura Securities Co. Ltd. ADR 2,000 234,145
Fire, Marine & Casualty Insurance (1.51%)
Allstate Corp. 9,900 355,162
Berkshire Hathaway, Inc., Class B 105(a) 236,145
Loews Corp. 2,900 229,462
Mutual Risk Management Ltd. 3,700 123,488
Philadelphia Consolidated Holding Co. 1,200(a) 29,400
St. Paul Cos., Inc. 3,200 101,800
Tokio Marine & Fire Insurance ADR 4,600 258,175
1,333,632
Footwear, Except Rubber (0.38%)
Olivetti & Co. SPA ADR 153,968(a) 337,082
Freight Transportation
Arrangement (0.22%)
C.H. Robinson Worldwide, Inc. 5,200 191,100
Furniture & Home Furnishings (0.05%)
Tuesday Morning Corp. 1,600(a) $ 40,800
General Industrial Machinery (2.05%)
Amer Group Ltd. ADR 5,500 39,562
Applied Science & Technology, Inc. 1,200(a) 27,000
SKF AB ADR 15,370 284,345
Tyco International Ltd. 15,300 1,449,675
1,800,582
Grocery Stores (0.15%)
Koninklijke Bijenkorf Beheer NV ADR 2,400 94,728
Pantry, Inc. 2,400(a) 38,700
133,428
Hotels & Motels (0.35%)
Crestline Capital Corp. 60 1,009
Four Seasons Hotel, Inc. 1,400 61,688
Hilton Group PLC 18,500 146,827
Host Marriott Corp. 2,639 31,338
Interstate Hotels Corp. 110(a) 455
John Q. Hammons Hotels, Inc. 3,200(a) 13,400
Promus Hotel Corp. 1,800(a) 55,800
310,517
Household Audio & Video
Equipment (0.31%)
Sony Corp. ADR 2,500 275,937
Industrial Inorganic Chemicals (0.71%)
Akzo ADR 8,566 362,984
USEC, Inc. 17,900 266,263
629,247
Laundry, Cleaning & Garment
Services (0.09%)
Steiner Leisure Ltd. 2,700(a) 81,844
Life Insurance (0.88%)
American General Corp. 3,000 226,125
Lincoln National Corp. 6,800 355,725
Reinsurance Group of America, Inc. 5,850 195,975
777,825
Lumber & Other Building
Materials (0.57%)
Home Depot, Inc. 7,800 502,612
Management & Public Relations (0.67%)
Nielsen Media Research, Inc. 16,867(a) 493,360
Ogden Corp. 3,700 99,669
593,029
Measuring & Controlling Devices (0.26%)
Uniphase Corp. 1,100(a) 182,600
Veeco Instruments, Inc. 1,400(a) 47,600
230,200
Meat Products (0.64%)
Groupe Danone 10,764 563,092
Medical Instruments & Supplies (0.10%)
Novoste Corp. 700(a) 14,700
Osteotech, Inc. 200(a) 5,750
Techne Corp. 500(a) 12,688
Xomed Surgical Products, Inc. 1,200(a) 58,425
91,563
Men's & Boys' Clothing Stores (0.52%)
Abercrombie & Fitch Co. 9,500(a) $ 456,000
Metalworking Machinery (0.17%)
Makita Corp. ADR 13,000 147,062
Miscellaneous Amusement, Recreation
Service (0.26%)
Cedar Fair, L.P. 6,200 154,612
SFX Entertainment, Inc. 1,153(a) 76,747
231,359
Miscellaneous Business Services (0.05%)
Softnet Systems, Inc. 1,600(a) 44,600
Miscellaneous Chemical Products (0.17%)
Millenium Chemicals, Inc. 6,200 146,088
Miscellaneous Electrical Equipment &
Supplies (0.29%)
TDK Corp. ADR 2,800 257,775
Miscellaneous Equipment Rental &
Leasing (0.04%)
Rent-A-Center, Inc. 1,400(a) 33,600
Miscellaneous Food & Kindred
Products (0.20%)
Nestle Reg. ADR 2,000 180,176
Miscellaneous Investing (2.14%)
Amli Residential Properties Trust 800 17,900
Archstone Communities Trust 1,552 34,047
Avalonbay Communities, Inc. 3,100 114,700
Bedford Property Investors, Inc. 900 16,087
Berkshire Realty Company, Inc. 1,600 18,500
Boston Properties, Inc. 1,300 46,638
Brandywine Realty Trust 2,700 53,494
Burnham Pacific Properties, Inc. 11,100 136,669
Carramerica Realty Corp. 2,600 65,000
Charles E. Smith Residential Realty, Inc. 1,900 64,481
Chateau Communities, Inc. 3,253 97,387
Cornerstone Properties, Inc. 1,200 19,050
Crescent Real Estate Equities Co. 300 7,125
EastGroup Properties, Inc. 700 14,044
Equity Office Properties Trust 3,419 87,612
Essex Property Trust, Inc. 2,500 88,437
Federal Realty Investment Trust 800 18,350
Gables Residential Trust 400 9,650
Great Lakes REIT, Inc. 5,800 94,250
Manufactured Home Communities, Inc. 800 20,800
Meditrust Corp. - Paired Stock 100 1,306
Pan Pacific Retail Properties, Inc. 1,600 31,100
Pennsylvania Real Estate Investment Trust 2,400 50,250
Philips International Realty Corp. 200 3,375
Prentiss Property Trust 200 4,700
Prime Group Realty Trust, Inc. 9,200 158,125
Prologis Trust 640 $ 12,960
Public Storage, Inc. 3,576 100,128
Ramco-Gershenson Properties Trust 100 1,625
Oregency Realty Corp. 2,000 43,875
Rouse Co. 1,100 27,912
Simon Property Group, Inc. 900 22,837
Starwood Hotels & Resorts Worldwide, Inc. 2,790 85,269
Sunstone Hotel Investors, Inc. 100 850
Taubman Centers, Inc. 7,700 101,544
Urban Shopping Centers, Inc. 2,100 66,150
Vornado Realty Trust 1,500 52,969
Wellsford Real Properties, Inc. 7,777(a)(b) 83,603
Wyndham International, Inc. 3,310 14,895
1,887,694
Miscellaneous Shopping Goods
Stores (0.16%)
Office Depot, Inc. 6,300(a) 138,994
Mortgage Bankers & Brokers (0.10%)
Countrywide Credit Industries, Inc. 2,100 89,775
Motion Picture Production (0.93%)
AT&T Corp. - Liberty Media Group,
Class A 9,000(a) 330,750
Time Warner, Inc. 6,600 485,100
815,850
Motorcycles, Bicycles & Parts (0.04%)
Ducati Motor Holding - ADR 1,300(a) 34,125
Harley Davidson, Inc. 100 5,438
39,563
Motor Vehicles & Equipment (1.56%)
Delphi Automotive Systems Corp. 1,467 27,231
Fiat SPA ADR 5,170 83,367
General Motors Corp. 2,100 138,600
General Motors Corp., Class H 1,400(a) 78,750
Meritor Automotive, Inc. 12,366 315,333
Toyota Motor Corp. ADR 8,600 550,400
Volkswagen AG ADR 14,000 180,674
1,374,355
Non-Classifiable Establishments (0.04%)
Keppel Corp. Ltd. ADR 5,375 36,623
Office Furniture (0.02%)
Knoll, Inc. 600(a) 15,975
Offices & Clinics of Medical
Doctors (0.04%)
Laser Vision Centers, Inc. 600(a) 37,800
Ophthalmic Goods (0.19%)
Bausch & Lomb, Inc. 2,150 164,475
Personal Credit Institutions (0.38%)
American Express Co. 2,600 338,325
Petroleum Refining (0.87%)
Ashland, Inc. 700 28,087
British Petroleum Amoco PLC 700 75,950
Conoco, Inc., Class A 8,600 239,725
Exxon Corp. 900 69,413
Total Fina SA (ADR) 5,410 348,607
761,782
Photographic Equipment &
Supplies (0.61%)
Eastman Kodak Co. 900 $ 60,975
Fuji Photo Film 8,800 334,400
OCE NV 5,600 142,100
537,475
Radio & Television Broadcasting (1.59%)
American Tower Corp., Class A 14,000(a) 336,000
Chancellor Media Corp. 3,400(a) 187,425
Clear Channel Communications, Inc. 8,700(a) 599,756
Metro Networks, Inc. 2,400(a) 128,100
Pegasus Communications Corp. 3,800(a) 149,863
1,401,144
Radio, Television & Computer
Stores (0.10%)
Best Buy, Inc. 500(a) 33,750
Intertan, Inc. 900(a) 18,450
Tweeter Home Entertainment Group, Inc. 900(a) 35,325
87,525
Railroads (0.11%)
Nagoya Railroad Co. Ltd. 2,900 95,360
Real Estate Agents & Managers (0.03%)
Atlantic Gulf Communities Co. 15,700(a) 9,812
Security Capital Group Inc 1,100(a) 16,019
25,831
Real Estate Operators & Lessors (0.65%)
Arden Realty Group, Inc. 3,300 81,262
Brookfield Properties Corp. 6,200 80,600
Pacific Gulf Properties, Inc. 4,200 95,025
Pinnacle Holdings, Inc. 900(a) 22,050
Sekisui House Ltd. ADR 2,300 248,174
Trizec Hahn Corp. 2,400 48,900
576,011
Research & Testing Services (0.36%)
Corporate Executive Board, Co. 8,800(a) 312,950
Retail Stores, NEC (0.47%)
Costco Cos., Inc. 4,800(a) 384,300
Zany Brainy, Inc. 2,800(a) 27,125
411,425
Savings Institutions (0.39%)
Citigroup, Inc. 6,500 308,750
Telebanc Financial Corp. 900(a) 34,875
343,625
Schools & Educational
Services, NEC (0.01%)
Argosy Education Group, Inc., Class A 1,100(a) 8,800
Search & Navigation Equipment (0.53%)
Litton Industries, Inc. 4,600(a) 330,050
Loral Space & Communications Ltd. 7,500(a) 135,000
465,050
Security & Commodity Services (0.17%)
Pimco Advisors Holdings LP 5,000 148,750
Security Brokers & Dealers (0.05%)
Bear Stearns Cos., Inc. 950 44,413
Soap, Cleaners & Toilet Goods (1.14%)
KAO Corp. ADR 2,200 $ 617,997
Procter & Gamble Co. 2,500 223,125
Shiseido Co. Ltd. ADR 11,000 164,860
1,005,982
Special Industry Machinery (0.22%)
Applied Materials, Inc. 2,600(a) 192,075
Telephone Communication (4.12%)
AT&T Corp. 10,477 584,748
BCE, Inc. 11,180 551,314
Bell Atlantic Corp. 10,700 699,512
Cellular Communications of Puerto Rico 2,200(a) 62,700
Concentric Network Corp. 800(a) 31,800
CoreComm Ltd. 800(a) 38,600
Exodus Communications, Inc. 400(a) 47,975
MCI Worldcom, Inc. 7,100(a) 612,375
Sprint Corp. 5,600 295,750
Telefonica SA Sponsored ADR 2,601(a) 382,672
Telesp Celular Participacoes S.A. ADR 3,600 96,300
U.S. West, Inc. 3,800 223,250
3,626,996
Tires & Inner Tubes (0.38%)
Bridgestone ADR 1,100 332,628
Variety Stores (0.43%)
Wal-Mart Stores, Inc. 7,900 381,175
Water Transportation of
Freight, NEC (0.20%)
Penninsular & Oriental Steamships ADR 5,850 175,758
Water Transportation of
Passengers (0.02%)
American Classic Voyages Co. 600(a) 14,400
Women's Accessory & Specialty
Stores (0.14%)
Intimate Brands, Inc. 2,520 119,385
Women's Clothing Stores (0.10%)
David's Bridal, Inc. 5,900(a) 91,819
Total Common Stocks 51,214,981
Preferred Stocks (0.09%)
Newspapers (0.05%)
News Corp. Ltd. ADR 1,500 47,344
Real Estate Agents & Managers (0.04%)
Atlantic Gulf Communities Corp. 4,809(a) 33,663
Telephone Communications (0.00%)
Telecommunicacoes Brasileiras SA ADR 8,800(a) 550
Total Preferred Stocks 81,557
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Bonds (10.52%)
Chemical & Allied Products (0.22%)
DSM NV Notes; 6.25%; 5/15/2004 $ 200,000(b) $ 197,320
Collateralized Mortgage
Obligations (0.57%)
AESOP Funding II LLC
Series 1997-1, Class A1;
6.22%; 10/20/2001 500,000(b) 502,830
Commercial Banks (1.50%)
Asian Development Bank Global
Bonds; 5.75%; 5/19/2003 500,000 492,823
First Union - Lehman Brothers
Commercial, Class 2 A1;
6.48%; 3/18/2004 279,405 278,642
Merrill Lynch & Co. Notes;
6.00%; 2/12/2003 350,000 344,369
Republic of Colombia Global Bonds;
9.75%; 4/23/2009 250,000 206,250
1,322,084
Electronic Distribution
Equipment (0.27%)
Israel Electric Corp. Senior Notes;
7.25%; 12/15/2006 250,000(b) 237,914
Electrical Goods (0.27%)
Empresa Nacional Electric Yankee Notes;
7.75%; 7/15/2008 250,000 236,625
Finance Services (0.29%)
Team Fleet Finance Corp. Notes;
7.35%; 5/15/2003 250,000 253,838
Fire, Marine & Casualty Insurance (0.33%)
Prudential Insurance Co. Senior Notes;
6.38%; 7/23/2006 300,000(b) 287,327
General Government, NEC (0.23%)
State of Qatar Bonds;
9.50%; 5/21/2009 200,000 202,250
Household Audio & Video
Equipment (0.28%)
Sony Corp. Notes;
6.13%; 3/4/2003 250,000 247,434
Industrial Inorganic Chemicals (0.27%)
Monsanto Co. Notes;
5.75%; 12/1/2005 250,000(b) 235,668
Life Insurance (0.30%)
Liberty Mutual Surplus Notes;
8.20%; 5/4/2007 250,000(b) 260,152
Miscellaneous Equipment Rental &
Leasing (0.25%)
Oil Enterprises Ltd. Global Bonds;
6.24%; 6/30/2008 $ 231,404(b) $ 220,108
Miscellaneous Investing (0.27%)
Simon Debartolo Medium-Term
Notes; 7.13%; 9/20/2007 250,000 238,600
Motor Vehicles, Parts & Supplies (0.30%)
Mid-State Trust Pass-Through Series 4,
Class A; 8.33%; 4/1/2030 252,458 263,912
Motor Vehicles & Equipment (0.71%)
Delphi Auto Systems Corp. Debentures;
7.13%; 5/1/2029 300,000 277,259
General Motors Acceptance Corp.
Senior Unsubordinated Global
Notes; 6.75%; 2/7/2002 350,000 352,780
630,039
Personal Credit Institutions (1.86%)
Associates Corp. Global Notes;
5.80%; 4/20/2004 350,000 337,905
Chemical Master Credit Card Trust
Series 1995-3, Class A;
6.23%; 4/15/2005 500,000 499,600
First USA Credit Card Master Trust
Series 1997-6, Class A;
6.42%; 3/17/2005 550,000 552,557
Ford Motor Credit Notes;
6.13%; 4/28/2003 250,000 246,349
1,636,411
Petroleum Refining (0.39%)
Conoco, Inc. Senior Notes;
5.90%; 4/15/2004 350,000 341,046
Savings Institutions (0.39%)
Citigroup, Inc. Global Senior Notes;
5.80%; 3/15/2004 350,000 339,452
Securities Brokers & Dealers (1.18%)
CNA Financial Notes;
6.50%; 4/15/2005 250,000 243,639
Donaldson, Lufkin & Jenrette
Medium-Term Notes;
6.90%; 10/1/2007 250,000 245,129
Lehman Brothers Holdings, Inc.
Global Notes; 6.63%; 4/1/2004 250,000 243,927
Salomon, Inc. Senior Notes;
7.30%; 5/15/2002 300,000 306,582
1,039,277
Telephone Communication (0.64%)
AT&T Corp. Global Notes;
6.50%; 3/15/2029 250,000 224,846
Worldcom, Inc. Senior Notes;
6.40%; 8/15/2005 350,000 343,454
568,300
Total Bonds 9,260,587
Asset-Backed Securities (3.62%)
Business Credit Institutions (0.57%)
Ford Credit Auto Owner Trust
Asset-Backed Series 1998-B,
Class A3; 5.85%; 10/15/2001 $ 500,000 $ 500,950
Collateralized Mortgage
Obligations (0.81%)
Chase Manhattan Corp. Mortgage
Pass-Through Certificates;
6.00%; 2/15/2009 250,000 231,490
GMAC Commercial Mortgage
Securities, Inc. Mortgage
Pass-Through Certificates
Series 1997-C2, Class A1;
6.45%; 12/15/2004 487,827 485,144
716,634
Electric Services (0.55%)
Peso Energy Transition Trust
Asset-Backed Fixed Rate;
6.05%; 3/1/2009 500,000 478,790
Mortgage Pass-Through Securities (0.55%)
Lehman Large Loan Series 1997-LLI,
Class A1; 6.79%; 6/12/2004 480,837 485,256
Personal Credit Institutions (1.14%)
American Express Credit Account Master
Trust Asset-Backed Bonds,
Series 1997-1, Class A;
6.40%; 4/15/2005 500,000 501,965
Premier Auto Trust Asset-Backed Bonds,
Series 1999-3, Class A3;
6.27%; 4/8/2003 500,000 501,562
1,003,527
Total Asset-Backed Securities 3,185,157
U.S. Government Treasury Notes & Bonds (14.83%)
Treasury Notes & Bonds (14.83%)
5.75%; 8/15/2003 4,250,000 4,250,000
6.13%; 8/15/2007 400,000 404,375
6.25%; 2/28/2002 2,000,000 2,030,000
6.38%; 3/31/2001 2,000,000 2,028,126
6.50%; 8/15/2005 2,000,000 2,061,876
7.25%; 8/15/2004 2,150,000 2,283,704
Total U.S. Government Treasury Notes & Bonds 13,058,081
- --------------------------------------------------------------------------------
Principal
Type Rate Maturity Amount Value
- --------------------------------------------------------------------------------
Federal National Mortgage Association
(FNMA) Certificates (3.88%)
FNMA 5.50% 1/1/2014-4/1/2014 $2,399,221 $2,320,394
FNMA 6.00% 4/1/2013 852,778 833,644
FNMA 8.00% 2/1/2012 260,577 259,422
Total FNMA Certificates 3,413,460
Federal Home Loan Mortgage Corporation
(FMLMC) Certificates (3.15%)
FHLMC 6.00% 12/1/2013-4/1/2028 $2,880,909 $2,773,754
Total Portfolio Investments (94.26%) 82,987,577
Cash and receivables, net of liabilities (5.74%) 5,049,481
Total Net Assets $88,037,058
(a) Non-income producing security - No dividend paid during the past twelve
months.
(b) Restricted security - See Note 4 to the financial statements.
BALANCED ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (57.66%)
Auto & Home Supply Stores (0.75%)
Autozone, Inc. 55,700(a) $ 1,677,963
Bakery Products (0.90%)
Sara Lee Corp. 89,100 2,021,456
Beverages (1.22%)
PepsiCo, Inc. 71,000 2,746,812
Business Credit Institutions (0.17%)
Associates First Capital Corp., Class A 8,728 386,760
Chemicals & Allied Products (0.41%)
Dow Chemical Co. 7,300 926,187
Commercial Banks (4.02%)
Bank of America Corp. 29,700 2,177,381
BankBoston Corp. 23,000 1,175,875
Chase Manhattan Corp. 15,300 1,325,362
First Union Corp. 26,908 1,264,676
PNC Financial Corp. 18,500 1,066,063
Wells Fargo Co. 47,700 2,039,175
9,048,532
Commercial Printing (0.51%)
R.R. Donnelley & Sons Co. 30,700 1,137,819
Communications Equipment (0.57%)
General Instrument Corp. 30,300(a) 1,287,750
Computer & Data Processing
Services (2.23%)
Electronic Data Systems Corp. 39,500 2,234,219
First Data Corp. 56,900 2,784,544
5,018,763
Computer & Office Equipment (3.80%)
3COM Corp. 32,200(a) $ 859,338
Cabletron Systems, Inc. 55,000(a) 715,000
Compaq Computer Corp. 76,200 1,804,987
Hewlett-Packard Co. 23,500 2,361,750
International Business Machines Corp. 21,800 2,817,650
8,558,725
Consumer Products (2.27%)
Fortune Brands, Inc. 36,600 1,514,325
Nabisco Group Holdings Corp. 40,300 788,369
Philip Morris Cos., Inc. 30,100 1,209,643
R.J. Reynolds Tobacco Holdings, Inc. 13,433(a) 423,151
UST, Inc. 39,600 1,158,300
5,093,788
Crude Petroleum & Natural Gas (0.75%)
Texaco, Inc. 27,100 1,693,750
Department Stores (1.25%)
Dillard's, Inc., Class A 51,800 1,819,475
Penney (J.C.) Co. 20,500 995,531
2,815,006
Drugs (5.15%)
Abbott Laboratories 24,000 1,092,000
American Home Products Corp. 35,200 2,024,000
Bristol-Myers Squibb Co. 24,600 1,732,763
Johnson & Johnson 23,700 2,322,600
Merck & Co., Inc. 31,200 2,308,800
Pharmacia & Upjohn, Inc. 20,500 1,164,656
Warner-Lambert Co. 13,600 943,500
11,588,319
Electric Services (1.91%)
Central & Southwest Corp. 64,900 1,517,038
Dominion Resources, Inc. 23,700 1,026,506
Potomac Electric Power Co. 29,500 868,406
Reliant Energy, Inc. 32,200 889,525
4,301,475
Electrical Industrial Apparatus (0.94%)
Emerson Electric Co. 33,700 2,118,888
Electronic Components &
Accessories (0.51%)
National Semiconductor Corp. 45,400(a) 1,149,187
Electronic Distribution Equipment (0.82%)
General Electric Co. 16,400 1,853,200
Fats & Oils (0.73%)
Archer Daniels Midland Co. 106,465 1,643,553
Federal & Federally Sponsored
Credit (0.57%)
Federal National Mortgage Association 18,600 1,271,775
Fire, Marine & Casualty Insurance (2.35%)
Berkshire Hathaway, Inc., Class A 21(a) $ 1,446,900
Berkshire Hathaway, Inc., Class B 10(a) 22,490
Loews Corp. 15,600 1,234,350
Safeco Corp. 32,400 1,429,650
St. Paul Cos., Inc. 36,100 1,148,431
5,281,821
General Industrial Machinery (0.54%)
Pall Corp. 54,900 1,218,094
Grain Mill Products (0.80%)
Ralston-Ralston Purina Group 59,200 1,801,900
Groceries & Related Materials (0.59%)
Sysco Corp. 44,300 1,320,694
Grocery Stores (0.75%)
Albertson's, Inc. 32,634 1,682,691
Industrial Inorganic Chemicals (0.75%)
Eastman Chemical Co. 11,850 613,238
Praxair, Inc. 21,800 1,066,837
1,680,075
Jewlery, Silverware & Plated Ware (0.09%)
Jostens, Inc. 9,700 204,306
Life Insurance (0.59%)
Lincoln National Corp. 25,200 1,318,275
Machinery, Equipment, & Supplies (0.73%)
Grainger (W. W.), Inc. 30,400 1,635,900
Management & Public Relations (0.50%)
Dun & Bradstreet Corp. 31,500 1,116,281
Meat Products (0.36%)
Tyson Foods, Inc. 36,300 816,750
Medical Instruments & Supplies (0.79%)
St. Jude Medical, Inc. 49,850(a) 1,775,906
Medical Services & Health
Insurance (2.19%)
AON Corp. 21,337 880,151
Conseco, Inc. 58,400 1,777,550
Foundation Health Systems, Inc., Class A 95,340(a) 1,430,100
Pacificare Health Systems, Inc., Class B 11,600(a) 834,475
4,922,276
Military Contractors (0.52%)
Lockheed Martin Corp. 31,400 1,169,650
Miscellaneous Chemical Products (0.23%)
Dupont EI de Nemours Co. 31,400 2,145,012
Miscellaneous Converted Paper (0.86%)
Minnesota Mining & Mfg. Co. 22,300 1,938,706
Miscellaneous Food & Kindred
Products (0.32%)
Universal Foods Corp. 34,400 726,700
Miscellaneous Furniture & Fixtures (0.48%)
Newell Rubbermaid, Inc. 23,300 1,083,450
Miscellaneous Shopping Goods (0.56%)
Toys `R' Us, Inc. 61,100(a) $ 1,264,006
Miscellaneous Transportation
Equipment (0.47%)
FMC Corp. 15,500(a) 1,058,844
Motion Picture Production &
Services (0.37%)
Walt Disney Co. 27,100 835,019
Motor Vehicles & Equipment (0.42%)
Ford Motor Co. 16,654 939,910
Oil & Gas Field Services (0.36%)
Diamond Offshore Drilling 28,700 814,363
Paper Mills (1.31%)
Fort James Corp. 37,400 1,416,525
Kimberly Clark Corp. 27,000 1,539,000
2,955,525
Petroleum Refining (2.99%)
Amerada Hess Corp. 27,900 1,660,050
Atlantic Richfield Co. 27,000 2,256,188
British Petroleum Amoco PLC 9,708 1,053,318
Exxon Corp. 22,800 1,758,450
6,728,006
Pulp Mills (0.23%)
Boise Cascade Corp. 12,000 516,000
Rubber & Plastics Footwear (0.65%)
Nike, Inc. 23,000 1,456,188
Sanitary Services (2.10%)
Browning-Ferris Industries, Inc. 61,400 2,640,200
Waste Management, Inc. 38,605 2,075,019
4,715,219
Savings Institutions (1.30%)
Citigroup, Inc. 61,500 2,921,250
Security Brokers & Dealers (0.20%)
Bear Stearns Cos., Inc. 9,345 436,879
Telephone Communication (2.72%)
AT&T Corp. 40,950 2,285,522
GTE Corp. 25,700 1,946,775
Motorola, Inc. 19,800 1,876,050
6,108,347
Variety Stores (0.34%)
Wal-Mart Stores, Inc. 16,000 772,000
Total Common Stocks 129,699,751
Preferred Stock (0.68%)
Telephone Communication (0.68%)
Sprint - 8.25% Convertible Preferred 17,500 1,522,500
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Bonds (23.40%)
Beverages (0.61%)
Seagram Co., Ltd. Notes;
6.50%; 4/1/2003 $1,400,000 $ 1,378,143
Blast Furnace & Basic Steel
Products (0.78%)
Carpenter Technology Corp.
Medium-Term Notes;
6.99%; 4/20/2018 1,700,000 1,552,226
Quanex Corp. Convertible
Subordinated Debentures;
6.88%; 6/30/2007 200,000 210,000
1,762,226
Business Credit Institutions (1.33%)
CIT Group Holdings Senior
Medium-Term Notes;
6.38%; 10/1/2002 1,500,000 1,490,681
Heller Financial, Inc. Notes;
6.44%; 10/6/2002 1,500,000 1,496,642
2,987,323
Commercial Banks (1.57%)
J.P. Morgan & Co., Inc.
Subordinated Notes;
6.70%; 11/1/2007 1,800,000 1,773,585
NationsBank Corp. Subordinated
Notes; 7.80%; 9/15/2016 1,700,000 1,759,043
3,532,628
Communications Equipment (0.79%)
Motorola, Inc. Debentures;
7.50%; 5/15/2025 1,750,000 1,764,952
Computer & Office Equipment (0.41%)
Seagate Technology, Inc.
Senior Notes;
7.37%; 3/1/2007 1,000,000 933,175
Consumer Products (1.12%)
Philip Morris Cos., Inc. Notes;
7.25%; 9/15/2001 1,500,000 1,520,778
6.15%; 3/15/2010 1,000,000 999,020
2,519,798
Department Stores (0.79%)
Dillards, Inc.
Notes; 7.38%; 6/1/2006 845,000 843,114
Fred Meyer, Inc. Senior Notes;
7.38%; 3/1/2005 925,000 937,420
1,780,534
Farm & Garden Machinery (0.74%)
Deere & Co. Senior Debentures;
8.50%; 1/9/2022 1,500,000 1,666,887
Fire, Marine & Casualty Insurance (0.59%)
St. Paul Cos., Inc.
Medium Term Notes; Series C
6.38%; 12/15/2008 1,400,000 1,334,459
Forest Products (0.63%)
Weyerhaeuser Co. Debentures;
6.95%; 10/1/2027 $1,500,000 $ 1,409,911
General Government, NEC (0.98%)
Province of Quebec, Canada
Debentures; 7.50%; 7/15/2002 700,000 718,802
7.00%; 1/30/2007 1,500,000 1,494,435
2,213,237
Medical Service & Health
Insurance (0.22%)
Aetna Services, Inc.;
6.38%; 8/15/2003 500,000 494,623
Miscellaneous Investing (1.11%)
Federal Realty Investment Trust
Notes; 8.88%; 1/15/2000 1,000,000 1,014,046
Kimco Realty Corp. Senior Notes;
6.50%; 10/1/2003 1,525,000 1,489,092
2,503,138
Mortgage Bankers & Brokers (0.76%)
Countrywide Funding Corp.
Medium-Term Notes;
6.54%; 4/14/2000 1,700,000 1,705,551
Motor Vehicles & Equipment (1.43%)
Chrysler Corp. Debentures;
7.45%; 3/1/2027 1,800,000 1,819,125
General Motors Corp. Debentures;
7.70%; 4/15/2016 1,353,000 1,390,904
3,210,029
Paper & Paper Products (0.35%)
Boise Cascade Office Products
Corp. Notes; 7.05%; 5/15/2005 800,000 779,022
Paper Mills (0.49%)
International Paper Co. Notes;
6.88%; 7/10/2000 1,100,000 1,104,940
Personal Credit Institutions (1.32%)
Associates Corp. of North America
Senior Notes; 6.45%; 10/15/2001 1,500,000 1,505,613
Ford Motor Credit Co. Notes;
7.75%; 3/15/2005 1,400,000 1,463,875
2,969,488
Petroleum & Petroleum
Products (0.67%)
Enron Corp. Notes;
6.75%; 9/1/2004 1,500,000 1,498,054
Plumbing & Heating, Except
Electricity (0.44%)
Masco Corp. Notes; 6.13%; 9/15/2003 1,000,000 989,545
Railroads (1.47%)
Norfolk Southern Debentures;
9.00%; 3/1/2021 $1,500,000 $ 1,715,538
Union Pacific Corp. Notes;
7.00%; 6/15/2000 1,575,000 1,585,003
3,300,541
Security Brokers & Dealers (3.24%)
Bear Stearns Cos., Inc. Senior Notes;
6.13%; 2/1/2003 1,600,000 1,563,035
Lehman Brothers, Inc. Senior
Subordinated Notes;
6.13%; 2/1/2001 1,300,000 1,290,774
7.25%; 4/15/2003 1,300,000 1,304,525
Morgan Stanley Group, Inc.
Debentures; 8.88%; 10/15/2001 1,530,000 1,615,686
Salomon Smith Barney Holdings, Inc.
7.98%; 3/1/2000 1,500,000 1,518,747
7,292,767
Surety Insurance (1.56%)
Allstate Corp. Debentures;
6.75%; 5/15/2018 2,650,000 2,549,843
MBIA, Inc. Debentures;
7.00%; 12/15/2025 1,000,000 954,282
3,504,125
Trucking & Courier Services,
Except Air (0.00%)
Builders Transport, Inc. Convertible
Subordinated Debentures;
6.50%; 5/1/2011 306,000(b) 765
Total Bonds 52,635,861
- --------------------------------------------------------------------------------
Principal
Type Rate Maturity Amount Value
- --------------------------------------------------------------------------------
Federal National Mortgage Association (FNMA)
Certificates (0.64%)
FNMA 6.50% 8/1/2028 $1,484,666 $ 1,437,018
Federal Home Loan Mortgage Corporation (FHLMC)
Certificates (3.28%)
FHLMC 6.00 1/1/2029 987,265 930,891
FHLMC 6.50 9/1/2027-5/1/2029 5,132,965 4,970,577
FHLMC 7.00 12/1/2027 1,487,567 1,475,262
Total FHLMC Certificates 7,376,730
Government National Mortgage Association (GNMA)
Certificates (2.18%)
GNMA II 6.00 9/20/2026-7/20/2028 5,259,746 4,911,429
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Asset-Backed Securities (7.44%)
Commercial Banks (0.90%)
Chase Manhattan Credit Card
Master Trust Asset-Backed
Cert., Series 1997-2, Class A;
6.30%; 4/15/2003 $2,000,000 $ 2,013,580
Mortgage Pass-Through Securities (6.54%)
Chase Commercial Mortgage Securities
Corp. Mortgage Pass-Through
Cert., Series 1998-1, Class B;
6.56%; 5/15/2008 2,800,000 2,767,156
DLJ Commercial Mortgage Corp.,
Mortgage Pass-Through Cert.,
Series 1998-CF1, Class A-1B;
6.41%; 2/18/2008 2,900,000 2,781,274
First Union Commercial Mortgage
Trust Commercial Mortgage
Pass-Through Certificate,
Series 1999-C1, Class B;
6.22%; 12/15/2008 1,900,000 1,830,517
GMAC Commercial Mortgage
Securities, Inc. Mortgage
Pass-Through Certificates,
Series 1998-C2, Class C;
6.50%; 8/15/2008 2,500,000 2,380,950
J.P. Morgan Commercial Mortgage
Finance Corp. Mortgage
Pass-Through Certificates,
Series 1999-C7, Class B;
6.66%; 10/15/2035 1,000,000 993,720
LB Commercial Mortgage Trust,
Mortgage Pass-Through Cert.,
Series 1998-C4, Class A-1B;
6.21%; 10/15/2008 2,000,000 1,904,340
Morgan Stanley Capital I Inc.
Commercial Mortgage,
Series 1999-RM1, Class B;
6.81%; 11/15/2008 2,100,000 2,056,031
14,713,988
Total Asset-Backed Securities 16,727,568
Commercial Paper (4.05%)
Personal Credit Institutions (4.05%)
Investment in Joint Trade Account,
Associates Corp. of North Amercia;
5.75%; 7/1/1999 9,107,971 9,107,971
Total Portfolio Investments (99.33%) 223,418,828
Cash and receivables, net of liabilities (0.67%) 1,516,341
Total Net Assets (100.00%) $224,935,169
(a) Non-income producing security - No dividend paid during the past twelve
months.
(b) Non-income producing security - Security in default.
BLUE CHIP ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (98.30%)
Bakery Products (2.66%)
Sara Lee Corp. 6,200 $ 140,663
Beverages (5.33%)
Anheuser-Busch Cos., Inc. 1,900 134,781
PepsiCo, Inc. 3,800 147,013
281,794
Commercial Banks (5.97%)
Bank One Corp. 2,700 160,819
J.P. Morgan & Co., Inc. 1,100 154,550
315,369
Computer & Office Equipment (6.33%)
Automatic Data Processing, Inc. 3,500 154,000
Hewlett-Packard Co. 1,800 180,900
334,900
Drugs (11.54%)
American Home Products Corp. 2,500 143,750
Johnson & Johnson 1,800 176,400
Merck & Co., Inc. 2,000 148,000
Pharmacia & Upjohn, Inc. 2,500 142,031
610,181
Eating & Drinking Places (2.81%)
McDonald's Corp. 3,600 148,725
Electrical Industrial Apparatus (2.85%)
Emerson Electric Co. 2,400 150,900
Electronic Components &
Accessories (3.23%)
Motorola, Inc. 1,800 170,550
Electronic Distribution Equipment (2.78%)
General Electric Co. 1,300 146,900
Fire, Marine & Casualty Insurance (5.68%)
American International Group, Inc. 1,200 140,475
Chubb Corp. 2,300 159,850
300,325
General Industrial Machinery (2.10%)
Pall Corp. 5,000 110,937
Grain Mill Products (2.62%)
Kellogg Co. 4,200 138,600
Groceries & Related Materials (2.88%)
Sysco Corp. 5,100 152,044
Medical Instruments & Supplies (2.44%)
Becton, Dickinson & Co. 4,300 129,000
Metal Cans & Shipping
Containers (2.59%)
Crown Cork & Seal Co., Inc. 4,800 136,800
Miscellaneous Converted Paper
Products (3.12%)
Minnesota Mining & Mfg. Co. 1,900 $ 165,181
Miscellaneous Food & Kindred
Products (2.72%)
Bestfoods 2,900 143,550
Miscellaneous Shopping Goods (1.45%)
Toys `R' Us, Inc. 3,700(a) 76,544
Petroleum Refining (8.66%)
Exxon Corp. 1,900 146,537
Mobil Corp. 1,500 148,500
Royal Dutch Petroleum Co. ADR 2,700 162,675
457,712
Preserved Fruits & Vegtables (2.84%)
H.J. Heinz Co. 3,000 150,375
Sanitary Services (3.42%)
Browning-Ferris Industries, Inc. 4,200 180,600
Sugar & Confectionery Products (2.72%)
Wrigley (Wm.) Jr. Co. 1,600 144,000
Telephone Communications (5.90%)
AT&T Corp. 2,600 145,112
GTE Corp. 2,200 166,650
311,762
Variety Stores (2.74%)
Wal-Mart Stores, Inc. 3,000 144,750
Women's Clothing Stores (2.92%)
The Limited, Inc. 3,400 154,275
Total Common Stocks 5,196,437
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (2.25%)
Personal Credit Institutions (2.25%)
Investments in Joint Trade Account,
Associates Corp.; 5.75%; 7/1/99 $119,064 $ 119,064
Total Portfolio Investments (100.55%) 5,315,501
Liabilites, net of cash and receivables (-0.55%) (29,319)
Total Net Assets $5,286,182
(a) Non-income producing security - No dividend paid during the period.
BOND ACCOUNT
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Bonds (93.57%)
Air Transportation, Scheduled (2.74%)
Continental Airlines Pass-Through Cert.,
Series 1999-2 Class A-1;
7.26%; 9/15/2021 $2,000,000 $ 2,027,360
Federal Express Corp.,
Pass-Through Cert.;
7.96%; 3/28/2017 282,311 283,124
7.58%; 7/2/2019 500,000 500,785
Northwest Airlines Pass-Through Cert.,
Series 1999-1 Class 1A;
6.81%; 2/1/2020 700,000 674,912
3,486,181
Bakery Products (0.73%)
Nabisco, Inc. Notes; 7.05%; 7/15/2007 950,000 928,000
Beverages (1.28%)
Joseph E. Seagram & Sons Guaranteed
Debentures; 8.88%; 9/15/2011 1,500,000 1,627,290
Broadwoven Fabric Mills,
Cotton (1.05%)
Burlington Industries, Inc. Notes;
7.25%; 9/15/2005 1,500,000 1,336,260
Cable & Other Pay TV Services (1.12%)
CSC Holdings, Inc. Senior Notes;
7.25%; 7/15/2008 1,500,000 1,425,000
Cash Grains (0.24%)
Aktiebolaget SKF Senior Notes;
7.63%; 7/15/2003 300,000 302,914
Combination Utility Services (2.06%)
Puget Sound Power & Light Co. First
Mortgage Medium-Term Notes,
Series A; 7.75%; 2/1/2007 $2,500,000 2,613,735
Communications Equipment (1.68%)
QWest Communications
International, Inc. Senior Notes;
7.50%; 11/1/2008 2,200,000 2,131,250
Computer & Data Processing
Services (2.34%)
Comdisco, Inc.
Medium-Term Notes;
6.65%; 11/13/2001 1,000,000 996,727
Notes; 6.00%; 1/30/2002 2,000,000 1,971,664
2,968,391
Computer & Office Equipment (3.01%)
International Game Technology
Senior Notes; 8.38%; 5/15/2009 2,000,000(a) 1,962,500
Seagate Technology, Inc. Senior Notes;
7.37%; 3/1/2007 2,000,000 1,866,350
3,828,850
Credit Reporting & Collection (2.34%)
Orix Credit Alliance Short-Term Notes;
7.00%; 3/15/2001 $3,000,000(a) $ 2,971,551
Crude Petroleum & Natural Gas (1.31%)
Louis Dreyfus Natural Gas Corp.
Senior Notes; 6.88%; 12/1/2007 1,500,000 1,402,170
Occidental Petroleum Corp.
Medium-Term Notes;
9.73%; 6/15/2001 250,000 262,120
1,664,290
Department Stores (2.98%)
Fred Meyer, Inc. Senior Notes;
7.38%; 3/1/2005 1,500,000 1,520,140
Harcourt General, Inc. Subordinated
Notes; 9.50%; 3/15/2000 350,000 355,099
J.C. Penney Co., Inc. Medium-Term
Notes, Series A;
6.88%; 10/15/2015 1,500,000 1,342,073
Sears Roebuck Co. Medium-Term
Notes; 9.05%; 2/6/2012 500,000 572,834
3,790,146
Drug Stores & Proprietary Stores (1.08%)
Rite Aid Corp. Senior Debentures;
6.88%; 8/15/2013 1,500,000 1,375,082
Eating & Drinking Places (2.29%)
Aramark Services, Inc.;
6.75%; 8/1/2004 3,000,000 2,910,717
Electric Services (6.83%)
AES Ironwood LLC Senior Secured
Bonds; 8.88%; 11/30/2025 3,000,000(a) 3,013,170
CE Generation LLC Senior Secured
Notes; 7.42%; 12/15/2018 1,000,000(a) 968,930
Calpine Corp. Notes; 7.75%; 4/15/2009 2,000,000 1,875,000
Commonwealth Edison Co. Debentures;
6.95%; 7/15/2018 1,000,000 964,945
East Coast Power, LLC Senior Secured
Notes; 7.53%; 6/30/2017 $2,000,000 1,858,460
8,680,505
Engines & Turbines (0.73%)
Brunswick Corp. Debentures;
7.38%; 9/1/2023 1,000,000 934,908
Fabricated Rubber Products,
NEC (0.21%)
M.A. Hanna Co. Senior Notes;
9.38%; 9/15/2003 250,000 269,370
Farm & Garden Machinery (1.13%)
Case Corp. Notes; 7.25%; 1/15/2016 1,500,000 1,436,628
Funeral Service & Crematories (1.45%)
Service Corp. International Notes;
6.00%; 12/15/2005 2,000,000 1,837,858
Gas Production & Distribution (0.59%)
Enron Corp. Notes;
7.13%; 5/15/2007 750,000 746,017
General Government, NEC (0.41%)
Ontario Hydro Debentures;
7.45%; 3/31/2013 $ 500,000 $ 516,310
General Industrial Machinery (0.75%)
Timken Co. Medium-Term Notes;
6.20%; 1/15/2008 1,000,000 952,410
Gold & Silver Ores (0.55%)
Placer Dome, Inc. Notes;
7.13%; 6/15/2007 750,000 703,467
Grain Mill Products (0.82%)
Ralston Purina Co. Debentures;
7.75%; 10/1/2015 1,000,000 1,044,584
Groceries & Related Products (1.13%)
Supervalu, Inc. Medium-Term Notes,
Series B; 6.49%; 12/12/2005 1,500,000 1,442,199
Grocery Stores (1.65%)
American Stores Co. Bonds;
8.00%; 6/1/2006 1,000,000 1,072,555
Food Lion, Inc. Notes;
7.55%; 4/15/2007 1,000,000 1,025,542
2,098,097
Highway & Street Construction (1.35%)
Foster Wheeler Corp. Notes;
6.75%; 11/15/2005 1,900,000 1,709,791
Hospitals (0.39%)
Columbia/HCA Healthcare Corp.
Medium-Term Notes;
8.70%; 2/10/2010 500,000 489,846
Hotels & Motels (3.51%)
Hilton Hotels Corp. Notes;
7.70%; 7/15/2002 1,500,000 1,515,005
Marriott International, Inc. Notes;
6.63%; 11/15/2003 3,000,000 2,938,383
4,453,388
Household Furniture (0.38%)
Masco Corp. Debentures;
7.13%; 8/15/2013 500,000 482,487
Industrial Organic Chemicals (1.99%)
Equistar Chemicals LP Senior Notes;
8.75%; 2/15/2009 2,500,000(a) 2,526,768
Life Insurance (0.78%)
John Hancock Mutual Life Insurance
Co. Surplus Notes;
7.38%; 2/15/2024 1,000,000(a) 989,812
Lumber & Construction
Materials (1.29%)
Crane Co. Notes; 8.50%; 3/15/2004 1,524,000 1,634,638
Machinery, Equipment &
Supplies (0.59%)
AAR Corp. Notes; 7.25%; 10/15/2003 750,000 747,556
Management & Public Relations (0.77%)
ServiceMaster Co. Ltd. Notes;
6.95%; 8/15/2007 $1,000,000 $ 973,957
Medical Instruments & Supplies (0.38%)
Delphi Automotive Systems Corp.;
6.13%; 5/1/2004 500,000 487,082
Millwork, Plywood & Structural
Members (0.09%)
Georgia-Pacific Corp.
Debentures; 9.50%; 12/1/2011 100,000 115,676
Miscellaneous Investing (2.86%)
First Industrial LP Medium-Term
Notes; 7.00%; 12/1/2006 2,000,000 1,925,876
Washington REIT Senior Notes;
7.25%; 8/13/2006 1,000,000 976,998
Weingarten Realty Investors
Medium-Term Notes;
7.29%; 5/23/2005 750,000 736,635
3,639,509
Miscellaneous Metal Ores (0.29%)
Cyprus Minerals Co. Notes;
10.13%; 4/1/2002 350,000 366,808
Mortgage Bankers & Brokers (1.50%)
Chase Commercial Mortgage
Securities Corp. Class C Notes;
6.60%; 12/19/2007 2,000,000 1,911,900
Motor Vehicles & Equipment (1.70%)
Ford Motor Credit Co. Senior Notes;
5.80%; 1/12/2009 1,500,000 1,371,450
TRW, Inc. Medium-Term Notes;
9.25%; 12/30/2011 700,000 789,034
2,160,484
Newspapers (3.60%)
News America Holdings, Inc.
Guaranteed Senior Notes;
8.50%; 2/15/2005 1,500,000 1,585,507
United News & Media PLC Notes;
7.75%; 7/1/2009 3,000,000 2,991,390
4,576,897
Oil & Gas Field Services (1.91%)
Petroleum Geo-Services ASA
Notes; 7.50%; 3/31/2007 2,000,000 2,000,582
R&B Falcon Senior Notes;
6.75%; 4/15/2005 500,000 420,000
2,420,582
Operative Builders (1.49%)
Pulte Corp.
Senior Notes; 8.38%; 8/15/2004 1,000,000 1,012,446
Notes; 7.63%; 10/15/2017 1,000,000 881,000
1,893,446
Paper & Paper Products (1.15%)
Boise Cascade Office Products Corp.
Notes; 7.05%; 5/15/2005 $1,500,000 $ 1,460,666
Paper Mills (1.50%)
Bowater, Inc. Debentures;
9.38%; 12/15/2021 200,000 235,915
Champion International Corp. Notes;
9.88%; 6/1/2000 250,000 257,312
7.10%; 9/1/2005 875,000 871,125
Potlatch Corp. Medium-Term
Notes; 8.75%; 1/14/2022 500,000 536,831
1,901,183
Petroleum Refining (2.57%)
Ashland Oil, Inc. Medium-Term Notes,
Series F; 8.54%; 1/13/2005 250,000 264,441
7.71%; 5/11/2007 500,000 509,129
7.73%; 7/15/2013 250,000 253,457
Sun Co., Inc.
Notes; 7.13%; 3/15/04 200,000 200,085
Debentures; 9.00%; 11/1/2024 500,000 549,281
Tosco Corp. Notes; 7.25%; 1/1/2007 1,500,000 1,485,555
3,261,948
Public Building & Related
Furniture (0.77%)
Lear Corp. Senior Notes;
7.96%; 5/15/2005 1,000,000(a) 975,283
Pulp Mills (0.16%)
International Paper Co. Medium-Term
Notes; 9.70%; 8/15/2000 200,000 206,883
Railroads (1.49%)
Union Pacific Corp.
Notes; 6.40%; 2/1/2006 1,000,000 957,286
Debentures; 7.00%; 2/1/2016 1,000,000 941,893
1,899,179
Rental of Railroad Cars (0.76%)
Gatx Capital Corp. Medium-Term
Notes, Series C; 6.86%; 10/13/2005 1,000,000 969,498
Residential Building Construction (1.48%)
D.R. Horton, Inc. Senior Notes;
8.00%; 2/1/2009 2,000,000 1,880,000
Sanitary Services (1.21%)
Laidlaw, Inc. Senior Notes;
7.88%; 4/15/2005 1,045,000 1,032,986
WMX Technologies, Inc. Notes;
7.00%; 10/15/2006 500,000 498,286
1,531,272
Search & Navigation Equipment (2.13%)
Raytheon Co. Notes;
6.40%; 12/15/2018 3,000,000(a) 2,701,914
Security Brokers & Dealers (4.27%)
Bear Stearns Co., Inc. Senior Notes;
7.00%; 3/1/2007 2,500,000 2,441,992
Lehman Brothers, Inc.
Senior Subordinated Notes;
7.38%; 1/15/2007 3,000,000 2,979,003
5,420,995
Telephone Communication (8.57%)
Airtouch Communications, Inc. Notes;
6.65%; 5/1/2008 $2,500,000 $ 2,432,370
GTE Corp. Notes; 6.36%; 4/15/2006 2,500,000 2,436,772
Sprint Capital Corp. Notes;
5.70%; 11/15/2003 3,000,000 2,885,565
8.13%; 7/15/2002 500,000 518,346
WorldCom, Inc. Notes;
7.75%; 4/1/2007 2,500,000 2,612,635
10,885,688
Variety Stores (0.14%)
Dayton-Hudson Corp. Debentures;
9.63%; 2/1/2008 150,000 173,851
Total Bonds 118,870,997
Asset-Backed Securities (3.85%)
Investment Offices (2.25%)
Morgan Stanley Capital I, Inc.
Commercial Mortgage
Pass-Through Cert., Series 99-WF1,
Class C; 6.54%; 10/15/2008 3,000,000 2,861,010
Security Brokers & Dealers (1.60%)
Merrill Lynch Mortgage Investors, Inc.
Collateralized Mortgage-Backed
Security, Series 95-C3, Class C;
7.34%*; 12/26/2025 2,000,000 2,026,840
Total Asset-Backed Securities 4,887,850
Commercial Paper (1.81%)
Personal Credit Institutions (1.81%)
Investment in Joint Trade Account;
Associates Corp.; 5.75%; 7/1/1999 2,306,535 2,306,535
Total Portfolio Investments (99.23%) 126,065,382
Cash, receivables and other assets,
net of liabilities (0.77%) 978,702
Total Net Assets (100.00%) $127,044,084
(a) Restricted security - See Note 4 to the financial statements.
* Variable rate (monthly).
CAPITAL VALUE ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (97.72%)
Bakery Products (1.03%)
Sara Lee Corp. 196,200 $ 4,451,287
Beverages (2.60%)
PepsiCo, Inc. 289,500 11,200,031
Books (0.48%)
McGraw-Hill Cos., Inc. 38,600 $ 2,081,987
Combination Utility Services (1.23%)
Montana Power Co. 75,000 5,287,500
Commercial Banks (19.55%)
Bank of America Corp. 139,100 10,197,769
Bank One Corp. 175,434 10,449,288
Chase Manhattan Corp. 160,000 13,860,000
Comerica, Inc. 142,500 8,469,844
First American Corp. 230,000 9,559,375
First Union Corp. 213,220 10,021,340
Keycorp 206,000 6,617,750
Summit Bancorp. 175,300 7,329,731
Union Planters Corp. 170,600 7,623,687
84,128,784
Communications Equipment (2.38%)
Harris Corp. 261,500 10,247,531
Crude Petroleum & Natural Gas (2.60%)
Texaco, Inc. 179,000 11,187,500
Department Stores (2.28%)
Sears, Roebuck & Co. 219,800 9,794,838
Drug Stores & Proprietary
Stores (2.50%)
Rite Aid Corp. 436,800 10,756,200
Drugs (7.09%)
Abbott Laboratories 224,800 10,228,400
American Home Products Corp. 202,000 11,615,000
Merck & Co., Inc. 117,400 8,687,600
30,531,000
Electric Lighting & Wiring
Equipment (1.57%)
Cooper Industries, Inc. 130,200 6,770,400
Electric Services (1.38%)
FPL Group, Inc. 38,500 2,103,062
Reliant Energy, Inc. 139,000 3,839,875
5,942,937
Grain Mill Products (1.92%)
Kellogg Co. 250,200 8,256,600
Greeting Cards (2.28%)
American Greetings Corp. 325,400 9,802,675
Groceries & Related Products (1.92%)
Sysco Corp. 277,200 8,264,025
Grocery Stores (0.91%)
Albertson's, Inc. 75,600 3,898,125
Life Insurance (2.24%)
American General Corp. 128,000 9,648,000
Machinery, Equipment & Supplies (2.60%)
Grainger (W. W.), Inc. 208,300 11,209,144
Management & Public Relations (1.73%)
Dun & Bradstreet Corp. 209,900 7,438,331
Measuring & Controlling Devices (1.01%)
Beckman Coulter, Inc. 43,300 $ 2,105,463
Mallinckrodt, Inc. 62,000 2,255,250
4,360,713
Metal Cans & Shipping Containers (3.59%)
Ball Corp. 130,200 5,500,950
Crown Cork & Seal Co., Inc. 349,000 9,946,500
15,447,450
Miscellaneous Converted Paper
Products (5.14%)
Avery Dennison Corp. 205,500 12,407,063
Minnesota Mining & Mfg. Co. 111,900 9,728,306
22,135,369
Miscellaneous Food & Kindred
Products (0.17%)
Universal Foods Corp. 34,400 726,700
Miscellaneous Furniture &
Fixtures (2.47%)
Newell Rubbermaid, Inc. 228,300 10,615,950
Paper Mills (2.61%)
Kimberly Clark Corp. 196,900 11,223,300
Petroleum Refining (6.91%)
Atlantic Richfield Co. 156,400 13,069,175
Chevron Corp. 115,300 10,975,119
Exxon Corp. 74,000 5,707,250
29,751,544
Plumbing & Heating, Except
Electric (1.99%)
Masco Corp. 296,400 8,558,550
Rental of Railroad Cars (1.95%)
GATX Corp. 220,000 8,373,750
Sanitary Services (3.16%)
Browning-Ferris Industries, Inc. 316,000 13,588,000
Telephone Communication (10.43%)
AT&T Corp. 182,250 10,171,828
Bell Atlantic Corp. 182,500 11,930,938
SBC Communications, Inc. 195,384 11,332,272
U.S. West, Inc. 194,600 11,432,750
44,867,788
Total Common Stocks 420,546,009
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (2.13%)
Personal Credit Institutions (2.13%)
Investment In Joint Trade Account,
Associates Corp.; 5.75%; 7/1/1999 $9,144,534 $ 9,144,534
Total Portfolio Investments (99.85%) 429,690,543
Cash and receivables, net of liabilities (0.15%) 658,444
Total Net Assets (100.00%) $430,348,987
GOVERNMENT SECURITIES ACCOUNT
- --------------------------------------------------------------------------------
Principal
Type Rate Maturity Amount Value
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation (FHLMC)
Certificates (28.14%)
FHLMC 5.50% 3/1/2024 $ 239,658 $ 221,595
FHLMC 6.00 1/1/2009-1/1/2026 5,761,828 5,557,521
FHLMC 6.50 6/1/2018-12/1/2028 15,533,333 15,059,095
FHLMC 7.00 1/1/2024-10/1/2028 11,837,748 11,737,876
FHLMC 7.50 3/1/2023-12/1/2027 686,785 694,610
FHLMC Gold 5.50 2/1/2024 886,273 817,560
FHLMC Gold 6.00 7/1/2009 2,000,000 1,951,622
FHLMC Gold 6.50 10/1/2025-5/1/2026 1,280,964 1,244,823
FHLMC Gold 7.00 9/1/2023-5/1/2028 2,018,011 2,003,389
FHLMC Gold 7.50 2/1/2022-8/1/2027 1,031,530 1,045,687
Total FHLMC Certificates 40,333,778
Federal National Mortgage Association (FNMA)
Certificates (15.60%)
FNMA 5.50 5/1/2024 1,009,048 930,862
FNMA 6.00 2/1/2009-11/1/2028 7,029,575 6,707,894
FNMA 6.50 11/1/2023-8/1/2025 10,205,473 9,896,882
FNMA 7.00 8/1/2023-11/1/2027 3,215,703 3,187,595
FNMA 7.50 4/1/2022-7/1/2027 906,919 973,237
FNMA Gold 6.50 8/1/2025 684,228 661,114
Total FNMA Certificates 22,357,584
Government National Mortgage Association (GNMA)
Certificates (25.85%)
GNMA I 6.50 5/15/2026-8/15/2028 2,764,238 2,669,089
GNMA I 7.00 1/15/2024-5/15/2028 5,146,541 5,088,018
GNMA I 7.50 1/15/2027-2/15/2027 1,273,900 1,290,599
GNMA I 8.00 10/15/2016-6/15/2017 770,456 801,107
GNMA II 6.00 5/20/2024-7/1/2029 26,077,068 24,422,573
GNMA II 6.50 12/20/2025-2/20/2026 2,873,795 2,768,505
Total GNMA Certificates 37,039,891
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Private Export Funding Corporation (PEFCO)
Certificates (13.97%)
Private Export Funding Corp.
Notes;
6.24%; 5/15/2002 $ 200,000 $ 201,365
7.01%; 4/30/2004 280,000 289,617
7.90%; 3/31/2000 1,550,000 1,576,187
8.40%; 7/31/2001 1,000,000 1,049,232
Secured Notes;
6.62%; 10/1/2005 2,200,000 2,238,885
9.45%; 12/31/1999 5,200,000 5,300,932
Series KK, Senior Secured Notes;
8.75%; 6/30/2003 1,373,000 1,497,756
Series SS, Senior Secured Notes;
5.50%; 3/15/2001 3,375,000 3,358,358
5.80%; 2/1/2004 2,200,000 2,155,479
7.03%; 10/31/2003 2,275,000 2,347,217
Total PEFCO Certificates 20,015,028
Student Loan Marketing Association (SLMA)
Certificates (13.31%)
Student Loan Marketing Association
Debentures;
7.30%; 8/1/2012 10,000,000 10,655,380
8.47%; 12/1/2008 1,000,000 1,132,867
9.15%; 12/1/2004 1,200,000 1,351,123
Global Notes;
5.89%; 11/17/1999 1,500,000 1,502,718
6.05%; 9/14/2000 1,000,000 1,003,950
7.50%; 3/8/2000 500,000 506,535
Medium-Term Notes;
5.57%; 3/17/2000 1,000,000 999,888
Notes;
6.13%; 12/1/2005 1,560,000 1,524,374
9.25%; 6/1/2004 350,000 393,439
Total SLMA Certificates 19,070,274
Other Federal Agencies (2.59%)
Agency-Backed Bonds (2.59%)
Tennessee Valley Authority Bonds;
6.50%; 8/20/2001 1,374,000 1,390,610
Tennessee Valley Authority
Global Notes; 0.00%; 5/1/2000 1,000,000(a) 955,979
6.38%; 6/15/2005 385,000 386,130
Tennessee Valley Authority
Notes; 5.28%; 9/14/2001 1,000,000 984,048
Total Other Federal Agencies 3,716,767
Federal Agency Short-Term Obligations (0.87%)
Federal & Federally Sponsored
Credit (0.87%)
Investment in Joint Trading Account,
Federal Home Loan Mortgage
Corp.; 4.60%; 7/1/1999 $1,248,334 $ 1,248,334
Total Portfolio Investments (100.33%) 143,781,656
Liabilities, net of cash and receivables (-0.33%) (478,702)
Total Net Assets (100.00%) $143,302,954
(a) Non-income producing security - zero-coupon bond.
GROWTH ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (96.85%)
Accounting, Auditing &
Bookkeeping (1.05%)
Paychek, Inc. 106,500 $ 3,394,688
Advertising (1.11%)
Interpublic Group of Cos., Inc. 41,300 3,577,612
Beverages (2.61%)
Coca-Cola Co. 31,600 1,975,000
PepsiCo, Inc. 166,900 6,456,944
8,431,944
Carpets & Rugs (0.28%)
Shaw Industries, Inc. 54,800(a) 904,200
Cash Grains (1.08%)
Pioneer Hi-Bred International, Inc. 89,700 3,492,694
Commercial Banks (10.04%)
Bank One Corp. 110,300 6,569,744
Chase Manhattan Corp. 78,100 6,765,413
Firstar Corp. 74,556 2,087,568
FirstMerit Corp. 43,800 1,229,137
Mellon Bank Corp. 180,000 6,547,500
National City Corp. 22,980 1,505,190
US Bancorp 164,000 5,576,000
Wells Fargo Co. 50,000 2,137,500
32,418,052
Communications Equipment (2.70%)
General Instrument Corp. 82,700(a) 3,514,750
Lucent Technologies, Inc. 77,000 5,192,687
8,707,437
Computer & Data Processing (4.63%)
BMC Software, Inc. 15,000(a) $ 810,000
Compuware Corp. 50,000(a) 1,590,625
GTECH Holdings Corp. 82,100(a) 1,934,481
IMS Health, Inc. 50,000 1,562,500
Microsoft Corp. 90,000(a) 8,116,875
Network Associates, Inc. 63,000(a) 925,313
14,939,794
Computer & Office Equipment (7.87%)
Automatic Data Processing, Inc. 119,600 5,262,400
Ceridian Corp. 180,600(a) 5,903,363
Cisco Systems, Inc. 72,000(a) 4,644,000
Compaq Computer Corp. 31,752 752,125
Hewlett-Packard Co., 30,000 3,015,000
International Business Machines Corp. 32,000 4,136,000
Pitney Bowes, Inc. 26,200 1,683,350
25,396,238
Consumer Products (0.95%)
Philip Morris Cos., Inc. 76,000 3,054,250
Drug Stores & Proprietary Stores (2.19%)
CVS Corp. 138,000 7,055,250
Drugs (13.39%)
American Home Products Corp. 107,200 6,164,000
Bristol-Myers Squibb Co. 61,600 4,338,950
Forest Laboratories, Inc. 71,200(a) 3,293,000
Genzyme Corp. - General Division 43,300(a) 2,100,050
Genzyme Surgical Products 7,751(a) 34,153
Johnson & Johnson 71,400 6,997,200
Lilly (Eli) & Co. 50,600 3,624,225
Merck & Co., Inc. 80,000 5,920,000
Pharmacia & Upjohn, Inc. 113,000 6,419,812
Smithkline Beecham PLC ADR 65,100 4,300,669
43,192,059
Electronic Components &
Accessories (3.85%)
Intel Corp. 115,600 6,878,200
Linear Technology Corp. 82,400 5,541,400
12,419,600
Electronic Distribution Equipment (2.17%)
General Electric Co. 61,900 6,994,700
Federal & Federally Sponsored
Credit (2.20%)
Federal Home Loan Mtg. Corp. 68,800 3,990,400
Federal National Mortgage Association 45,500 3,111,063
7,101,463
Fire, Marine & Casualty Insurance (0.91%)
American International Group, Inc. 25,000 2,926,562
General Industrial Machinery (3.71%)
Ingersoll-Rand Co. 45,450 2,937,206
Tyco International Ltd. 95,200 9,020,200
11,957,406
Grain Mill Products (1.62%)
Ralston-Ralston Purina Group 171,700 $ 5,226,119
Groceries & Related Products (1.40%)
Sysco Corp. 151,000 4,501,688
Grocery Stores (0.20%)
Casey's General Stores, Inc. 42,400 636,000
Hospitals (0.66%)
Universal Health Services, Inc., Class B 44,500(a) 2,124,875
Hotels & Motels (2.25%)
Marriott International, Inc., Class A 193,900 7,247,012
Investment Offices (0.94%)
AMVESCAP PLC Sponsored ADR 65,000 3,022,500
Lumber & Other Building
Materials (2.35%)
Home Depot, Inc. 117,600 7,577,850
Medical Instruments & Supplies (2.82%)
Becton, Dickinson & Co. 74,000 2,220,000
Boston Scientific Corp. 156,200(a) 6,863,037
9,083,03
Medical Services & Health
Insurance (1.67%)
AON Corp. 38,925 1,605,656
Foundation Health Systems, Inc., Class A 105,000(a) 1,575,000
Torchmark Corp. 10,000 341,250
United Healthcare Corp. 30,000 1,878,750
5,400,656
Miscellaneous Converted Paper
Products (0.43%)
Minnesota Mining & Mfg. Co. 16,100 1,399,694
Miscellaneous Fabricated Metal
Products (0.56%)
Parker-Hannifin Corp. 39,750 1,818,562
Miscellaneous Food & Kindred
Products (0.37%)
Bestfoods 24,200 1,197,900
Miscellaneous Investing (1.74%)
Cendant Corp. 273,108(a) 5,598,714
Motor Vehicles & Equipment (0.64%)
Dana Corp. 45,100 2,077,419
Oil & Gas Field Services (0.99%)
Schlumberger Ltd. 50,000 3,184,375
Petroleum Refining (1.24%)
Atlantic Richfield Co. 18,200 1,520,838
Exxon Corp. 32,300 2,491,137
4,011,975
Plumbing & Heating, Except
Electric (0.68%)
Masco Corp. 76,200 2,200,275
Sanitary Services (0.68%)
Browning-Ferris Industries, Inc. 32,000 $ 1,376,000
Waste Management, Inc. 15,225 818,344
2,194,344
Savings Institutions (2.46%)
Citigroup, Inc. 167,397 7,951,358
Soap, Cleaners & Toilet Goods (2.90%)
Colgate-Palmolive Co. 25,500 2,518,125
Ecolab, Inc. 121,200 5,287,350
Gillette Co. 38,000 1,558,000
9,363,475
Sugar & Confectionery Products (0.70%)
Wrigley (Wm.) Jr. Co. 25,000 2,250,000
Telephone Communication (6.96%)
Ameritech Corp. 45,000 3,307,500
AT&T Corp. 63,652 3,552,577
GTE Corp. 42,000 3,181,500
MCI Worldcom, Inc. 111,295(a) 9,599,194
Motorola, Inc. 29,800 2,823,550
22,464,321
Variety Stores (1.22%)
Wal-Mart Stores, Inc. 81,800 3,946,850
Women's & Children's
Undergarments (0.63%)
Warnaco Group, Inc. 76,100 2,035,675
Total Common Stocks 312,478,623
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (4.71%)
Business Credit Institutions (0.12%)
American Express Credit Corp.;
5.20%; 7/6/1999 $ 375,000 $ 374,729
Miscellaneous Electrical Equipment &
Supplies (0.12%)
Peacock Funding Corporation;
5.23%; 7/6/1999 390,000 389,717
Personal Credit Institutions (4.47%)
Investment in Joint Trade Account,
Associates Corp.; 5.75%; 7/1/1999 14,420,104 14,420,104
Total Commercial Paper 15,184,550
Total Portfolio Investments (101.56%) 327,663,173
Liabilities, net of cash and receivables (-1.56%) (5,031,124)
Total Net Assets (100.00%) $322,632,049
(a) Non-income producing security - No dividend paid during the past twelve
months.
HIGH YIELD ACCOUNT
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Bonds (90.86%)
Advertising (3.70%)
Lamar Advertising Co.
Senior Subordinated Notes;
9.63%; 12/1/2006 $500,000 $ 515,000
Aircraft & Parts (1.84%)
BE Aerospace Senior
Subordinated Notes;
9.50%; 11/1/2008 250,000 255,625
Blast Furnace & Basic Steel
Products (0.87%)
California Steel Industries, Inc.
Senior Subordinated Notes;
8.50%; 4/1/2009 125,000(a) 121,719
Cable & Other Pay TV
Services (2.99%)
Century Communications, Inc. Senior
Notes; 8.75%; 10/1/2007 100,000 99,250
Jones Intercable, Inc. Senior Notes;
9.63%; 3/15/2002 300,000 316,500
415,750
Cogeneration - Small Power
Producer (1.41%)
Calpine Corp. Senior Notes;
8.75%; 7/15/2007 200,000 197,000
Communications Equipment (5.89%)
Echostar DBS Corp. Senior Notes;
9.38%; 2/1/2009 500,000(a) 508,750
FWT, Inc. Senior Subordinated Notes;
9.88%; 11/15/2007 200,000(b) 20,000
QWest Communications
International, Inc. Senior Notes;
7.50%; 11/1/2008 300,000 290,625
819,375
Communications Services, NEC (5.65%)
Charter Communications Holdings LLC
Senior Notes; 8.25%; 4/1/2007 500,000(a) 478,750
Level 3 Communications, Inc. Step-up*
Senior Discount Notes; 12/1/2008 500,000(c) 307,500
786,250
Computer & Data Processing
Services (0.18%)
DecisionOne Corp. Senior
Subordinated Notes;
9.75%; 8/1/2007 500,000(b) 25,000
Computer & Office Equipment (2.12%)
International Game Technology
Senior Notes; 7.88%; 5/15/2004 300,000(a) 294,750
Crude Petroleum & Natural Gas (4.98%)
Chesapeake Energy Corp. Senior
Notes, Series A;
9.63%; 5/1/2005 $250,000 $ 233,750
Gulf Canada Resources Ltd.
Senior Notes; 8.35%; 8/1/2006 200,000 194,500
Louis Dreyfus Natural Gas Co.
Senior Subordinated Notes;
9.25%; 6/15/2004 250,000 265,795
694,045
Eating & Drinking Places (4.27%)
Cafeteria Operators L.P.
Senior Secured Notes;
12.00%; 12/31/2001 500,000 495,625
Foodmaker, Inc. Senior
Subordinated Notes;
8.38%; 4/15/2008 100,000 98,500
594,125
Electric Services (4.42%)
AES Corp. Senior Notes;
9.50%; 6/1/2009 500,000 513,750
York Power Funding Ltd.
Senior Secured Bonds;
12.00%; 10/30/2007 100,000(a) 101,500
615,250
Electrical Work (3.54%)
Integrated Electrical Services
Senior Subordinated Notes;
9.38%; 2/1/2009 500,000(a) 492,500
Finance Services (1.39%)
DVI, Inc. Senior Notes;
9.88%; 2/1/2004 200,000 194,000
Grocery Stores (1.42%)
Marsh Supermarkets Senior
Subordinated Notes;
8.88%; 8/1/2007 200,000 198,000
Heavy Construction, Except
Highway (3.38%)
Mastec, Inc. Senior Subordinated
Notes; 7.75%; 2/1/2008 500,000 470,000
Hotels & Motels (5.76%)
HMH Properties, Inc. Senior Notes;
7.88%; 8/1/2008 250,000 230,625
John Q. Hammons Hotels, L.P. &
Finance Corp. First Mortgage
Notes; 8.88%; 2/15/2004 300,000 279,000
Vail Resorts, Inc. Senior
Subordinated Notes;
8.75%; 5/15/2009 300,000(a) 291,750
801,375
Industrial Organic Chemicals (3.63%)
Equistar Chemicals LP Senior Notes;
8.75%; 2/15/2009 $500,000(a) $ 505,353
Men's & Boys' Clothing Stores (0.80%)
Edison Brothers Stores, Inc. Senior
Notes; 11.00%; 9/26/2007 300,000(b) 111,000
Miscellaneous Amusement,
Recreation Service (1.74%)
Station Casinos, Inc. Senior
Subordinated Notes,
8.88%; 12/1/2008 250,000 242,500
Miscellaneous Equipment Rental &
Leasing (3.85%)
Rental Service Corp. Senior
Subordinated Notes;
9.00%; 5/15/2008 500,000 536,250
Miscellaneous Shopping Goods
Stores (0.73%)
Zale Corp. Senior Notes;
8.50%; 10/1/2007 100,000 101,500
Paper Mills (0.99%)
Indah Kiat Finance Mauritius Ltd.
Guaranteed Senior Notes;
10.00%; 7/1/2007 200,000 138,000
Personal Credit Institutions (3.21%)
MacSaver Financial Services, Inc.
Notes; 7.60%; 8/1/2007 200,000 161,750
Mercury Financial Services Corp.
Senior Notes; 10.00%; 3/23/2001 300,000(a) 285,000
446,750
Petroleum Refining (1.87%)
Crown Central Petroleum Corp.
Senior Notes; 10.88%; 2/1/2005 300,000 261,000
Public Building & Related
Furniture (1.73%)
Lear Corp. Senior Notes;
8.11%; 5/15/2009 250,000(a) 240,736
Pulp Mills (1.22%)
Pen-Tab Industries, Inc. Senior
Subordinated Notes;
10.88%; 2/1/2007 200,000 170,000
Radio & Television
Broadcasting (2.44%)
Antenna TV S.A. Senior Notes;
9.00%; 8/1/2007 100,000 95,000
Chancellor Media Corp.
Unsecured Notes;
8.00%; 11/1/2008 250,000 245,000
340,000
Residential Building
Construction (1.69%)
D.R. Horton, Inc. Senior Notes;
8.00%; 2/1/2009 250,000 235,000
Retail Stores, NEC (1.26%)
Cole National Group, Inc.
Senior Subordinated Notes;
9.88%; 12/31/2006 $200,000 $ 176,000
Telephone Communication (8.57%)
Clearnet Communications, Inc.
Step-up* Senior Discount Notes;
12/15/2005 250,000(c) 228,750
Intermedia Communications, Inc.
Senior Notes; 8.50%; 1/15/2008 200,000 183,000
NEXTLINK Communications, Inc.
Senior Notes; 9.00%; 3/15/2008 200,000 188,000
Rogers Cablesystems, Ltd. Senior
Secured Second Priority Notes;
9.63%; 8/1/2002 250,000 261,250
Rogers Cantel, Inc. Senior Secured
Debentures; 9.75%; 6/1/2016 300,000 332,250
1,193,250
Water Transportation of
Freight, NEC (3.32%)
Cenargo International PLC
First Mortgage Notes;
9.75%; 6/15/2008 500,000 462,500
Total Bonds 12,649,603
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Preferred Stock (0.02%)
Fuel Dealers (0.02%)
Star Gas Partners, L.P. 132 $ 2,269
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (7.02%)
Business Credit Institutions (2.44%)
American Express Credit Corp.;
5.20%; 7/6/1999 $340,000 $ 339,754
Personal Credit Institutions (4.58%)
Investment in Joint Trade Account,
Associates Corp.; 5.75%; 7/1/1999 638,225 638,225
Total Commercial Paper 977,979
Total Portfolio Investments (97.90%) 13,629,851
Cash and receivables, net of liabilities (2.10%) 293,032
Total Net Assets (100.00%) $13,922,883
(a) Restricted security - See Note 4 to the financial statements.
(b) Non-income producing security - Security in default.
(c) Non-income producing security - Zero-step coupon bond.
* Variable Rate
INTERNATIONAL ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (93.56%)
Advertising (1.16%)
WPP Group PLC 226,100 $ 1,912,094
Blast Furnace & Basic Steel
Products (0.33%)
Tubos De Acero De Mexico SA ADR 50,000 543,750
Central Reserve Depositories (0.93%)
Union Bank of Norway 81,840 1,528,217
Commercial Banks (12.73%)
Australia & New Zealand Banking Group 386,000 2,838,369
Bank of Ireland 194,920 3,275,310
Housing & Commercial Bank Korea 35,000(a) 1,103,707
Merita PLC, Class A 462,460 2,627,844
National Australia Bank Ltd. 110,986 1,836,599
Nordbanken Holding AB 98,000 572,894
Royal Bank of Canada Montreal, Quebec 60,000 2,635,050
San Paolo-IMI SPA 178,345 2,427,776
Shinhan Bank 74,000 831,128
Svenska Handelsbanken, Class A 74,100 889,017
Svenska Handelsbanken, Class B 169,500 1,874,086
20,911,780
Communications Equipment (4.04%)
ECI Telecommunications Ltd. ADR 82,100 2,724,694
Telefonaktiebolaget LM Ericsson 122,000 3,910,374
6,635,068
Communications Services, NEC (2.70%)
Koninklijke KPN NV 54,450 2,554,954
Korea Telecom Corp. ADR 47,000(a) 1,880,000
4,434,954
Computer & Office Equipment (2.38%)
Canon, Inc. 76,000 2,185,132
Orbotech Ltd. ADR 33,000(a) 1,720,125
3,905,257
Concrete, Gypsum, & Plaster
Products (1.39%)
Lafarge SA 24,000 2,282,002
Consumer Products (4.00%)
Imasco Ltd. 65,869 1,766,834
Societe Nationale D'Exploitation
Industrielle Des Tabacs et Allumettes 37,200 2,148,349
Swedish Match Co. 747,000 2,662,289
6,577,472
Copper Ores (0.78%)
Trelleborg AB, Class B 145,000 1,279,149
Crude Petroleum & Natural Gas (1.99%)
Elf Acquitaine SA 22,300 3,272,529
Drugs (4.84%)
AstraZeneca Group PLC 83,976 3,269,453
Novartis AG 1,968 2,873,660
Takeda Chemical Industries 39,000 1,807,642
7,950,755
Electric Services (0.21%)
Enersis SA ADR 15,102 $ 345,458
Electrical Goods (0.87%)
Smiths Industries PLC 107,000 1,422,682
Electronic Components &
Accessories (0.78%)
Elec & Eltek International ADR 294,800 1,149,720
Varitronix International Ltd. 63,000 131,133
1,280,853
Electronic Distribution Equipment (3.11%)
Koninklijke Philips Electronics 51,796 5,109,225
Engines & Turbines (0.51%)
RHI AG 31,000 839,199
Farm & Garden Machinery (0.90%)
New Holland NV 86,000 1,472,750
Finance Services (1.51%)
Takefuji Corp. 24,000 2,480,581
Foreign Banks, Branches &
Agencies (2.79%)
Bank Austria AG 33,100 1,740,893
UBS AG 9,500 2,835,476
4,576,369
Gas Production & Distribution (0.95%)
OMV AG 17,450 1,556,450
Industrial Inorganic Chemicals (0.95%)
Rhone-Poulenc SA 34,000 1,553,655
Investment Offices (1.62%)
AMVESCAP PLC 298,800 2,656,431
Life Insurance (0.78%)
QBE Insurance Group Ltd. 337,398 1,284,153
Meat Products (4.39%)
Danisco AS 57,700 2,607,493
Orkla ASA, Class A 52,000 809,173
Orkla ASA, Class B 122,000 1,658,234
Unilever NV 31,714 2,137,343
7,212,243
Medical Instruments & Supplies (0.50%)
Terumo Corp. 37,000 823,845
Miscellaneous Business Services (1.46%)
Brista-Auto Estradas De Portugal SA 58,000 2,392,554
Miscellaneous Chemical Products (1.40%)
Hoechst AG 51,000 2,298,399
Miscellaneous Food & Kindred
Products (3.65%)
Greencore Group PLC 328,000 $ 1,078,000
Koninklijke Wessanen NV 142,000 1,801,222
Tomkins PLC 719,368 3,124,004
6,003,226
Miscellaneous Non-Durable Goods (3.80%)
Desc SA, Series B 1,160,000 1,276,926
Diageo PLC 237,205 2,471,520
Lagardere SCA 67,000 2,494,341
6,242,787
Miscellaneous Primary Metal
Products (0.23%)
Charter PLC 64,000 372,259
Miscellaneous Textile Goods (1.46%)
Esprit Holdings Ltd. 3,552,000 2,403,433
Miscellaneous Transportation
Equipment (0.99%)
Autoliv, Inc. 25,000 761,608
Autoliv, Inc. ADR 28,700 868,175
1,629,783
Motor Vehicles & Equipment (1.87%)
Daimlerchrysler AG 26,000 2,271,070
Honda Motor Co. Ltd. 19,000 805,297
3,076,367
Newspapers (3.35%)
Publishing & Broadcasting Ltd. 240,000 1,583,846
United News & Media PLC 406,000 3,916,664
5,500,510
Paperboard Containers &
Boxes (0.96%)
Buhrmann NV 98,200 1,584,892
Pens, Pencils, Office & Art
Supplies (1.03%)
Societe BIC SA 32,000 1,687,988
Personnel Supply Services (1.29%)
Vedior NV 124,060 2,111,006
Petroleum Refining (0.73%)
Sasol Ltd. 169,000 1,205,679
Pulp Mills (1.06%)
UPM-Kymmene Oyj 56,240 1,739,964
Radio & Television Broadcasting (1.43%)
Carlton Communications PLC 284,198 2,354,142
Security Brokers & Dealers (0.00%)
Peregrine Investment Holdings Ltd. 685,000(a)(b) 0
Soap, Cleaners & Toilet Goods (1.52%)
Reckitt & Colman PLC 239,945 2,496,287
Special Industry Machinery (2.17%)
Cookson Group 1,057,000 3,565,559
Telephone Communication (7.07%)
Hellenic Telecom Organization SA ADR 236,000 $ 2,610,750
Nokia Corp., Class A ADR 21,000 1,922,812
Telecom Corp. of New Zealand Ltd. 635,000 2,725,644
Telecom Italia-DI 803,575 4,358,991
11,618,197
Trucking & Courier Services,
Except Air (0.95%)
Securicor PLC 177,000 1,554,058
Total Common Stocks 153,684,011
Preferred Stock (0.75%)
Commercial Banks (0.75%)
National Australia Bank ECU 40,500 1,230,187
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (8.03%)
Business Credit Institutions (2.44%)
American Express Credit Corp.;
4.95%; 7/1/1999 $4,005,000 $ 4,005,000
Miscellaneous Electrical Equipment &
Supplies (1.82%)
General Electric Co.;
5.20%; 7/6/1999 3,000,000 2,997,833
Personal Credit Institutions (3.77%)
Ford Motor Credit Co.;
5.25%, 7/6/1999 3,005,000 3,002,809
5.26%, 7/7/1999 3,185,000 3,182,208
6,185,017
Total Commercial Paper 13,187,850
Total Portfolio Investments (102.34%) 168,102,048
Liabilities, net of cash and receivables (-2.34%) (3,845,063)
Total Net Assets (100.00%) $164,256,985
(a) Non-income producing security - No dividend paid during the period.
(b) Peregrine Investment Holdings Ltd. has filed a plan of liquidation.
International Account
Investments by Country
- --------------------------------------------------------------------------------
Total Percentage of
Country Value Total Value
- --------------------------------------------------------------------------------
Australia $ 8,773,154 5.22%
Austria 4,136,541 2.46
Canada 4,401,884 2.62
Chile 345,458 0.21
Denmark 2,607,492 1.55
Finland 6,290,621 3.74
France 13,438,864 7.99
Germany 4,569,469 2.72
Greece 2,610,750 1.55
Hong Kong 2,534,567 1.51
Israel 4,444,819 2.64
Italy 6,786,767 4.04
Japan 8,102,496 4.82
Korea, Republic of 3,814,834 2.27
Mexico 1,820,675 1.08
Netherland 16,771,392 9.98
New Zealand 2,725,644 1.62
Norway 3,995,624 2.38
Portugal 2,392,554 1.42
Singapore 1,149,720 0.68
South Africa 1,205,679 0.72
Sweden 16,087,047 9.57
Switzerland 5,709,136 3.40
United Kingdom 30,199,011 17.96
United States 13,187,850 7.85
Total $168,102,048 100.00%
INTERNATIONAL SMALLCAP ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (95.94%)
Advertising (2.09%)
Telefonica Publicidad E Informacion SA 11,400(a) $ 227,489
United Group Ltd. 98,000 152,440
379,929
Air Transportation, Scheduled (1.54%)
Ryanair Holdings PLC ADR 5,300(a) 280,900
Airports, Flying Fields & Services (2.40%)
Auckland International Airport Ltd. 151,000 232,052
Virgin Express Holdings ADR 22,400(a) 204,400
436,452
Bakery Products (1.74%)
Kamps AG 7,880 316,931
Commercial Banks (2.78%)
Banco Pastor SA 2,900 147,890
The Ashikaga Bank Ltd. 23,000 44,846
The Bank of Fukuoka Ltd. 10,000 42,054
The Bank of Iwate Ltd. 2,000 81,133
Commercial Banks (Continued)
The Fukui Bank Ltd. 26,000 $ 57,999
The Hokkaido Bank Ltd. 28,000(a) 45,805
The Hokuriku Bank Ltd. 22,000(a) 43,623
The Joyo Bank Ltd. 11,000 42,805
506,155
Commercial Printing (1.05%)
Sato Corp. 9,000 191,472
Communications Equipment (1.17%)
Indra Sistemas SA 7,600 81,904
Teleste OYJ 14,400 130,683
212,587
Communications Services, NEC (1.83%)
AT&T Canada, Inc. 5,200(a) 333,125
Computer & Data Processing
Services (7.70%)
CI Technologies Group Ltd. 36,900 138,001
Computacenter PLC 33,100 254,356
Computershare Ltd. 26,100 308,016
Ecsoft Group PLC ADR 8,400(a) 131,775
Framtidsfabriken AB 26,000(a) 513,777
Telinfo NV 500 56,514
1,402,439
Computer & Office Equipment (1.06%)
Venture Manufacturing Ltd. 25,000 192,368
Drug Stores & Proprietary Stores (2.04%)
Tsuruha Co. Ltd. 5,000 371,790
Drugs (2.55%)
Biovail Corp. International 4,100(a) 206,378
Faulding (F.H.) & Co. 28,300 172,338
Skyepharma PLC 111,000(a) 86,610
465,326
Eating & Drinking Places (1.10%)
Do & Co Restaurants & Catering AG 2,500 137,933
Kappa Create Co. Ltd. 5,000(a) 61,965
199,898
Electric Services (4.17%)
Energy Developments Ltd. 39,000 120,039
Independent Energy Holdings ADR 20,400(a) 277,950
Vestas Wind Systems 4,100(a) 362,011
760,000
Electrical Work (0.96%)
Telesystem International Wireless, Inc. 9,700(a) 175,315
Electronic Components &
Accessories (4.64%)
Celestica, Inc. 6,300(a) 272,869
JIT Holdings Ltd. 87,000 158,417
OA System Plaza Co. Ltd. 5,000 57,421
Perlos OYJ 24,300(a) 355,851
844,558
Electronic Distribution Equipment (2.99%)
JOT Automation Group OYJ 9,700 $ 393,132
Techtronic Industries Co. 758,000 151,426
544,558
Engines & Turbines (1.48%)
NEG Micon 7,600 269,474
Family Clothing Stores (2.95%)
Fast Retailing Co. Ltd. 5,000 537,030
Grocery Stores (1.09%)
Superdiplo SA 9,000(a) 199,551
Holding Offices (1.00%)
Lang Corp. Ltd. 54,000(a) 182,114
Hotels & Motels (1.06%)
Resorts World Berhad 82,000 193,157
Household Appliance Stores (1.39%)
Kojima Co. Ltd. 7,600 253,048
Household Audio & Video
Equipment (0.54%)
Nippon Broadcasting System, Inc. 2,000 99,144
Hunting, Trapping & Game
Propagation (0.92%)
Rapala Normark Corp. 23,800(a) 168,129
Industrial Organic Chemicals (0.38%)
Croda International PLC 15,600 69,222
Medical & Dental Laboratories (0.96%)
QIAGEN NV 2,600(a) 175,626
Medical Instruments & Supplies (1.09%)
Cochlear Ltd. 25,000 198,510
Metalworking Machinery (1.47%)
Mikron Holding AG 1,180 267,183
Miscellaneous Amusement, Recreation
Services (1.84%)
Aristocrat Leisure Ltd. 41,500 314,528
Tab Ltd. 10,000 20,189
334,717
Miscellaneous Durable Goods (0.58%)
Edel Music AG 1,400(a) 105,396
Miscellaneous Electrical Equipment &
Supplies (1.42%)
Kaba Holding AG, Class B 490 258,776
Miscellaneous Food & Kindred
Products (0.40%)
Rock Field Co. Ltd. 2,000 72,210
Miscellaneous General Merchandise
Stores (1.36%)
Japan Airport Terminal 25,000 247,860
Miscellaneous Manufacturers (0.62%)
Austria Haustechnik AG 3,200 $ 112,862
Miscellaneous Non-Durable Goods (1.57%)
Austria Tabakwerke AG 4,900 285,508
Miscellaneous Plastics
Products, NEC (1.10%)
Airspray NV 8,300(a) 201,150
Miscellaneous Primary Metal
Products (0.00%)
YBM Magnex International, Inc. 13,300(a) 90
Miscellaneous Services, NEC (0.50%)
Lindeteves-Jacoberg Ltd. 64,000 90,974
Mortgage Bankers & Brokers (0.98%)
Goldcrest Co. Ltd. 1,000 179,285
Motion Picture Distribution &
Services (0.66%)
Kinowelt Medien AG 1,600(a) 119,628
Motorcycles, Bicycles & Parts (0.88%)
Ducati Motor Holding SPA 61,400(a) 160,833
New & Used Car Dealers (0.75%)
Athlon Groep NV 5,600 135,715
Non-Classifiable Establishments (0.72%)
Bure Investment Aktiebolaget AB 24,800 131,267
Non-Residential Building
Construction (0.78%)
Algeco 1,800 141,542
Oil & Gas Field Services (1.44%)
Petroleum Geo-Services ASA 17,400(a) 261,921
Pens, Pencils Office & Art
Supplies (0.60%)
Sailor Pen Co. Ltd. 15,000(a) 109,058
Personnel Supply Services (1.79%)
NIC Corp. 6,000 203,245
Unique International NV 5,051 123,192
326,437
Professional & Commercial
Equipment (0.89%)
Quality Healthcare Asia Ltd. 836,000(a) 162,698
Pulp Mills (0.56%)
Miquel Y Costas 4,000 101,766
Radio & Television Broadcasting (2.82%)
Fuji Television Network, Inc. 30 162,100
Modern Times Group Mtg AB, Class B 16,200(a) 351,563
513,663
Radio, Television & Computer Stores (4.27%)
Distefora Holding AG 1,700(a) 174,966
Yamada Denki 11,000 602,547
777,513
Real Estate Agents & Managers (1.52%)
First Capital Corp. Ltd. 177,900 $ 276,913
Sanitary Services (1.19%)
De Sammensluttede Vognmand AS 2,400 216,914
Security Brokers & Dealers (1.91%)
E*TRADE Australia Ltd. 19,000(a) 75,510
Kempen & Co. NV 5,450 272,591
348,101
Special Industry Machinery (2.37%)
Aixtron 2,340 192,813
Neopost SA 10,330(a)(b) 239,694
432,507
Subdividers & Developers (1.45%)
MCL Land Ltd. 209,600 264,698
Telephone Communication (3.94%)
Aapt Ltd. 88,900(a) 276,571
Esat Telecom Group PLC ADR 8,100 355,388
Helsingin Puhelin OYJ, Series E 1,800 85,389
717,348
Trusts (0.89%)
NHP PLC 61,000 162,501
Total Common Stocks 17,475,842
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (4.67%)
Personal Credit Institutions (4.67%)
Associates Corp. of North America;
5.75%; 7/1/1999 $850,000 $ 850,000
Total Portfolio Investments (100.61%) 18,325,842
Liabilities, net of cash and receivables (-0.61%) (110,232)
Total Net Assets (100.00%) $18,215,610
(a) Non-income producing security - No dividend paid during the period.
(b) Restricted security - See Note 4 to the financial statements.
International SmallCap Account
Investments by Country
Total Percentage of
Country Value Total Value
Australia $1,958,257 10.69%
Austria 536,303 2.93
Belgium 260,914 1.42
Canada 987,777 5.39
Denmark 848,399 4.63
France 381,236 2.08
Finland 1,133,184 6.18
Germany 734,768 4.01
Hong Kong 314,124 1.71
Ireland 636,288 3.47
Italy 160,833 0.88
Japan 3,506,441 19.13
Malaysia 193,157 1.05
Netherlands 908,274 4.96
New Zealand 232,052 1.27
Norway 261,921 1.43
Singapore 983,370 5.37
Spain 758,599 4.14
Sweden 996,607 5.44
Switzerland 700,925 3.82
United Kingdom 982,413 5.36
United States 850,000 4.64
Total $18,325,842 100.00%
LARGECAP GROWTH ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (90.42%)
Air Transportation, Scheduled (1.64%)
Southwest Airlines Co. 1,550 $ 48,244
UAL Corp. 600(a) 39,000
87,244
Beverages (1.65%)
Coca-Cola Enterprises 2,850 87,638
Cable & Other Pay TV Services (7.08%)
Cablevision Systems Corp., Class A 1,675(a) 117,250
Comcast Corp. 4,650 178,734
MediaOne Group, Inc. 1,075(a) 79,953
375,937
Commercial Banks (4.87%)
Bank of America Corp. 675 49,486
Bank of New York Co., Inc. 3,500 128,406
MBNA Corp. 2,625 80,391
258,283
Computer & Data Processing
Services (2.72%)
Microsoft Corp. 1,600(a) $ 144,300
Computer & Office Equipment (9.14%)
Cisco Systems, Inc. 3,100(a) 199,950
EMC Corp. 2,900(a) 159,500
Sun Microsystems, Inc. 1,825(a) 125,697
485,147
Drugs (9.02%)
Lilly (Eli) & Co. 2,000 143,250
Pfizer, Inc. 925 101,519
Pharmacia & Upjohn, Inc. 1,350 76,697
Schering-Plough Corp. 475 25,175
Smithkline Beecham PLC ADR 375 24,773
Warner-Lambert Co. 1,550 107,531
478,945
Electric Services (1.96%)
Enron Corp. 1,275 104,231
Electronic Components &
Accessories (2.22%)
Linear Technology Corp. 1,750 117,688
Electronic Distribution Equipment (3.57%)
General Electric Co. 1,675 189,275
Federal & Federally
Sponsored Credit (3.35%)
Federal Home Loan Mtg. 1,300 75,400
Federal National Mortgage Association 1,500 102,563
177,963
Fire, Marine & Casualty Insurance (0.88%)
American International Group, Inc. 400 46,825
General Industrial Machinery (2.23%)
Tyco International Ltd. 1,250 118,437
Grocery Stores (1.61%)
Kroger Co. 3,050(a) 85,209
Hotels & Motels (1.64%)
MGM Grand, Inc. 1,775(a) 86,975
Lumber & Other Building
Materials (1.58%)
Home Depot, Inc. 1,300 83,769
Motion Picture Production &
Services (8.56%)
AT&T Corp. - Liberty
Media Group, Class A 2,300(a) 84,525
Time Warner, Inc. 2,500 183,750
Viacom, Inc., Class B 4,225(a) 185,900
454,175
Personal Credit Institutions (2.04%)
American Express Co. 830 108,004
Public Warehousing & Storage (1.51%)
Costco Cos., Inc. 1,000(a) 80,063
Savings Institutions (1.51%)
Citigroup, Inc. 1,687 80,132
Security Brokers & Dealers (6.69%)
Charles Schwab Corp. 950 $ 104,381
Goldman Sachs Group, Inc. 385(a) 27,816
Morgan Stanley Dean Witter & Co 2,175 222,938
355,135
Soap, Cleaners & Toilet Goods (0.74%)
Colgate-Palmolive Co. 400 39,500
Special Industry Machinery (4.82%)
Applied Materials, Inc. 1,875(a) 138,516
ASM Lithography Holdings NV 1,975(a) 117,265
255,781
Telephone Communication (7.31%)
AT&T Corp. 900 50,231
Nokia Corp. ADR, Class A 1,750 160,235
Sprint PCS Group 1,345(a) 76,833
Vodafone Group PLC ADR 510 100,470
387,769
Water Transportation of Passengers (2.08%)
Carnival Corp. 2,275 110,337
Total Portfolio Investments (90.42%) 4,798,762
Cash and receivables, net of liabilities (9.58%) 508,532
Total Net Assets (100.00%) $5,307,294
(a) Non-income producing security - No dividend paid during the past twelve
months.
MICROCAP ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (96.10%)
Aircraft & Parts (2.50%)
Avteam, Inc. 8,200(a) $ 59,963
Tristar Aerospace Co. 12,800(a) 105,600
165,563
Blast Furnace & Basic Steel
Products (1.90%)
Titan International, Inc. 10,600 125,875
Broadwoven Fabric Mills, Cotton (2.31%)
Burlington Industries, Inc. 16,900(a) 153,156
Colleges & Universities (1.89%)
Career Education Corp. 3,700(a) 125,106
Commercial Banks (2.60%)
Pacific Century Financial Corp. 8,000 172,500
Computer & Data Processing (1.38%)
GTECH Holdings Corp. 2,100(a) 49,481
Progress Software Corp. 1,500(a) 42,375
91,856
Computer & Office Equipment (2.19%)
Banctec, Inc. 5,300(a) 95,069
Black Box Corp. 1,000(a) 50,125
145,194
Crude Petroleum & Natural Gas (0.95%)
Swift Energy Co. 5,900(a) $ 63,056
Deep Sea Foreign Transportation of
Freight (1.17%)
Teekay Shipping Corp. 4,400 77,550
Drugs (0.80%)
Perrigo Co. 7,000(a) 53,375
Eating & Drinking Places (2.40%)
Avado Brands, Inc. 3,300 27,638
Morton's Restaurant Group, Inc. 6,900(a) 131,531
159,169
Electric Services (2.33%)
CMP Group, Inc. 5,900 154,506
Electrical Goods (0.92%)
Marshall Industries 1,700(a) 61,094
Electrical Industrial Apparatus (3.12%)
Carbide Graphite Group, Inc. 2,800(a) 40,075
Ucar International, Inc. 6,600(a) 166,650
206,725
Electronic Components &
Accessories (11.78%)
General Semiconductor, Inc. 20,500(a) 187,063
Hutchinson Technology, Inc. 3,800(a) 105,450
Kemet Corp. 4,100(a) 94,044
Memc Electronic Materials, Inc. 6,300(a) 76,781
Silicon Valley Group, Inc. 4,800(a) 80,700
Varian Semiconductor Equipment
Associates, Inc. 6,100(a) 103,700
Vishay Intertechnology, Inc. 6,375(a) 133,875
781,613
Engineering & Architectural
Services (1.52%)
Stone & Webster, Inc. 3,800 101,175
Family Clothing Stores (0.77%)
Syms Corp. 6,300(a) 51,187
Farm & Garden Machinery (0.84%)
Agco Corp. 4,900 55,431
Fire, Marine & Casualty Insurance (4.40%)
Frontier Insurance Group, Inc. 4,800 73,800
Pxre Corp. 8,900 161,313
Zenith National Insurance Corp. 2,300 56,637
291,750
Freight Transportation
Arrangement (0.95%)
Hub Group, Inc., Class A 2,800(a) 62,825
Groceries & Related Products (1.10%)
Fleming Cos., Inc. 6,300 73,237
Health & Allied Services, NEC (1.29%)
American Physician Partners, Inc. 11,900(a) 85,531
Home Health Care Services (1.78%)
Matria Healthcare, Inc. 16,300(a) 118,175
Hotels & Motels (1.74%)
Prime Hospitality Corp. 9,600(a) 115,200
Industrial Machinery, NEC (1.67%)
Denison International PLC 7,200(a) $ 110,700
Industrial Organic Chemicals (1.85%)
Methanex Corp. 32,700(a) 122,625
Insurance Agents, Brokers &
Services (0.91%)
Healthplan Services Corp. 8,900 60,631
Mailing, Reproduction,
Stenographic (0.12%)
Advo, Inc. 400(a) 8,300
Measuring & Controlling Devices (1.83%)
Varian, Inc. 9,000(a) 121,500
Medical & Dental Laboratories (1.98%)
Quest Diagnostics, Inc. 4,800(a) 131,400
Medical Instruments & Supplies (1.03%)
Haemonetics Corp. 3,400(a) 68,212
Medical Services & Health
Insurance (1.58%)
Foundation Health Systems, Inc., 3,300(a) 49,500
Penn Treaty American Corp. 2,300(a) 55,344
104,844
Miscellaneous Investing (0.89%)
RFS Hotel Investors, Inc. 4,700 59,044
Miscellaneous Manufacturers (1.51%)
Lydall, Inc. 8,700(a) 100,050
Miscellaneous Shopping Goods (1.89%)
Friedmans, Inc., Class A 14,400 125,100
Miscellaneous Textile Goods (1.33%)
Belden, Inc. 3,700 88,569
Newspapers (1.29%)
Lee Enterprises, Inc. 2,800 85,400
Nonferrous Foundries (Casting) (1.33%)
Wolverine Tube, Inc. 3,500(a) 87,938
Non-Store Retailers (0.40%)
MDC Communications Corp., Class A 2,200(a) 26,675
Nursing & Personal Care Facilities (2.26%)
Beverly Enterprises, Inc. 10,700(a) 86,269
Integrated Health Services, Inc. 8,000(a) 64,000
150,269
Petroleum Refining (1.23%)
Valero Energy Corp. 3,800 81,462
Radio, Television & Computer Stores (2.62%)
Inacom Corp. 13,756(a) 173,670
Real Estate Operators & Lessors (0.99%)
Insignia/ESG Holdings, Inc. 6,266(a) $ 65,793
Retail Stores, NEC (0.68%)
Brookstone, Inc. 2,900(a) 44,950
Rubber & Plastics Footwear (1.60%)
Reebok International Ltd. 5,700(a) 106,163
Savings Institutions (0.58%)
Sovereign Bancorp, Inc. 3,200 38,800
Secondary Non-Ferrous Metals (0.82%)
Ispat International NV 4,900 54,206
Shoe Stores (1.21%)
J. Baker, Inc. 9,300 80,212
Special Industry Machinery (3.76%)
Milacron, Inc. 2,800 51,800
Unova, Inc. 7,500(a) 119,063
Varian Medical Systems, Inc. 3,100 78,275
249,138
Surety Insurance (4.85%)
ESG Re Ltd. 11,100 166,500
Radian Group, Inc. 1,906 93,037
Scpie Holdings, Inc. 1,900 61,987
321,524
Trucking & Courier Services,
Except Air (1.75%)
Allied Holdings, Inc. 6,700(a) 54,438
Landstar System, Inc. 1,700(a) 61,359
115,797
Watches, Clocks, Watchcases &
Parts (1.40%)
Movado Group, Inc. 3,600 93,150
Total Portfolio Investments (95.99%) 6,366,971
Cash and receivables and other assets,
net of liabilities (4.01%) 266,255
Total Net Assets (100.00%) $6,633,226
(a) Non-income producing security - No dividend paid during the past twelve
months.
MIDCAP ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (96.68%)
Accounting, Auditing &
Bookkeeping (1.40%)
Paychex, Inc. 115,550 $ 3,683,156
Blast Furnace & Basic Steel
Products (0.88%)
Carpenter Technology Corp. 81,500 2,327,844
Business Credit Institutions (1.12%)
C.I.T. Group, Inc., Class A 102,300 $ 2,953,913
Carpets & Rugs (0.82%)
Shaw Industries, Inc. 130,000(a) 2,145,000
Chemicals & Allied Products (0.28%)
Sigma-Aldrich Corp. 21,300 733,519
Commercial Banks (8.39%)
Associated Banc Corp. 140,483 5,830,044
First Federal Capital Corp. 179,594 2,649,011
FirstMerit Corp. 45,500 1,276,844
Independent Bank Corp. Michigan 69,770 1,212,254
Merchants Bancorp., Inc. 45,800 1,282,400
North Fork Bancorp., Inc. 203,220 4,331,126
Peoples Heritage
Financial Group, Inc. 125,800 2,366,613
Princeton National Bancorp., Inc. 54,000 816,750
Summit Bancorp. 55,250 2,310,141
22,075,183
Computer & Data Processing
Services (9.96%)
American Management Systems, Inc. 53,100(a) 1,702,519
Cadence Design Systems, Inc. 234,200(a) 2,986,050
Cerner Corp. 137,300(a) 2,879,009
Compuware Corp. 128,700(a) 4,094,269
ICG Communications, Inc. 69,000(a) 1,474,875
Network Associates, Inc. 68,900(a) 1,011,969
Northpoint Communications 33,500(a) 1,222,750
Sungard Data Systems, Inc. 152,900(a) 5,275,050
Synopsys, Inc. 101,000(a) 5,573,937
26,220,428
Computer & Office Equipment (2.53%)
3COM Corp. 80,000(a) 2,135,000
Ceridian Corp. 89,600(a) 2,928,800
EMC Corp. 29,000(a) 1,595,000
6,658,800
Construction & Related Machinery (0.49%)
Cooper Cameron Corp. 35,000(a) 1,297,188
Crude Petroleum & Natural Gas (2.24%)
Devon Energy Corp. 85,000 3,038,750
Newfield Exploration Co. 100,000(a) 2,843,750
5,882,500
Department Stores (1.28%)
Saks, Inc. 116,440(a) 3,362,205
Drugs (4.59%)
Centocor, Inc. 76,600(a) 3,571,475
Dura Pharmaceuticals, Inc. 151,500(a) 1,808,531
Genzyme Corp. - General Division 45,060(a) 2,185,410
Genzyme Surgical Products 8,066(a) 35,542
Pharmacia & Upjohn, Inc. 34,400 1,954,350
Watson Pharmaceuticals 72,000(a) 2,524,500
12,079,808
Drugs, Proprietaries & Sundries (0.64%)
Mckesson Hboc, Inc. 52,540 1,687,848
Electronic Components & Accessories (5.55%)
Celestica, Inc. 58,500(a) $ 2,533,781
Intel Corp. 21,100 1,255,450
Jabil Circuit, Inc. 113,000(a) 5,099,125
Linear Technology Corp. 48,900 3,288,525
Solectron Corp. 36,600(a) 2,440,763
14,617,644
Fabricated Rubber Products, NEC (1.42%)
Weatherford International 101,900(a) 3,732,088
Fire, Marine & Casualty Insurance (0.22%)
Berkley (W.R.) Corp. 23,100 577,500
General Industrial Machinery (3.86%)
Kaydon Corp. 97,000 3,261,625
Pentair, Inc. 58,000 2,653,500
Roper Industries, Inc. 133,000 4,256,000
10,171,125
Grocery Stores (0.89%)
Casey's General Stores, Inc. 155,400 2,331,000
Holding Offices (0.46%)
Isb Financial Corp. 55,700 1,197,550
Hospitals (1.46%)
Universal Health Services, Inc., 80,400 3,839,100
Hotels & Motels (3.32%)
Four Seasons Hotel, Inc. 112,400 4,952,625
Marriott International, Inc.,
Class A 101,500 3,793,563
8,746,188
Household Appliances (2.17%)
Maytag Corp. 81,900 5,707,406
Industrial Inorganic Chemicals (0.25%)
ICN Pharmaceuticals, Inc. 20,346 654,887
Industrial Machinery, NEC (1.77%)
Coltec Industries 215,000(a) 4,662,813
Insurance Agents, Brokers &
Services (1.70%)
Equifax, Inc. 125,400 4,475,213
Investment Offices (1.33%)
AMVESCAP PLC Sponsored ADR 75,020 3,488,430
Iron & Steel Foundries (1.01%)
Precision Castparts Corp. 62,700 2,664,750
Knitting Mills (0.47%)
Russell Corp. 63,100 1,230,450
Laundry, Cleaning & Garment
Services (1.60%)
G&K Services, Inc. 39,525 2,070,122
Stewart Enterprises, Inc., Class A 147,300 2,145,056
4,215,178
Measuring & Controlling Devices (1.34%)
Millipore Corp. 86,700 3,516,769
Meat Products (0.90%)
Michael Foods, Inc. 101,200 2,378,200
Medical Instruments & Supplies (2.55%)
Boston Scientific Corp. 90,400(a) $ 3,971,950
Steris Corp. 141,400(a) 2,739,625
6,711,575
Medical Services & Health
Insurance (4.08%)
Foundation Health Systems, Inc. 235,750(a) 3,536,250
Orthofix International NV 77,600(a) 1,154,300
Pacificare Health Systems, Inc. 15,698(a) 1,129,275
Torchmark Corp. 70,900 2,419,462
United Healthcare Corp. 39,800 2,492,475
10,731,762
Miscellaneous Non-Metallic Mineral
Products (0.55%)
Hexcel Corp. 143,000(a) 1,447,875
Miscellaneous Business Services (0.59%)
Cendant Corp. 75,337(a) 1,544,409
Miscellaneous Chemical Products (1.25%)
Cytec Industries 51,200(a) 1,632,000
Fuller (H.B.) Co. 24,400 1,668,350
3,300,350
Miscellaneous Furniture & Fixtures (1.11%)
Newell Rubbermaid, Inc. 62,827 2,921,455
Nursing & Personal Care Facilities (0.67%)
Alterra Healthcare Corp. 127,300(a) 1,750,375
Office Furniture (0.34%)
Chromcraft Revington, Inc. 61,100(a) 882,131
Oil & Gas Field Services (1.08%)
Diamond Offshore Drilling 100,000 2,837,500
Operative Builders (1.01%)
D.R. Horton, Inc. 159,500 2,651,687
Paints & Allied Products (0.59%)
RPM, Inc. 109,750 1,557,078
Plumbing, Heating,
Air-Conditioning (1.41%)
Apogee Enterprises, Inc. 276,100 3,710,094
Public Building & Related
Furniture (0.91%)
Be Aerospace, Inc. 128,800(a) 2,406,950
Refrigeration & Service
Machinery (0.35%)
Tecumseh Products Co. 15,300 926,606
Sanitary Services (3.24%)
Browning-Ferris Industries, Inc. 62,800 2,700,400
Republic Services, Inc. 235,400(a) 5,826,150
8,526,550
Savings Institutions (5.00%)
Greenpoint Financial Corp. 127,400 $ 4,180,313
Sterling Financial Corp. 52,000(a) 718,250
TCF Financial Corp. 211,700 5,901,137
WSFS Financial Corp. 160,000 2,350,000
13,149,700
Security Brokers & Dealers (0.65%)
Investment Technology Group 52,800 1,709,400
Telephone Communication (5.35%)
Hyperion Telecomm, Inc., Class A 165,000(a) 3,104,063
Mcleodusa, Inc. 109,800(a) 6,039,021
RCN Corp. 53,000(a) 2,206,125
Winstar Communications, Inc. 56,000(a) 2,730,000
14,079,209
Women's & Children's Undergarments (0.39%)
Warnaco Group, Inc. 38,556 1,031,373
Women's & Misses' Outerwear (1.24%)
Jones Apparel Group, Inc. 94,962(a) 3,258,379
Total Common Stocks 254,448,141
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (2.36%)
Personal Credit Institutions (2.36%)
Investment In Joint Trade Account,
Associates Corp.; 5.75%; 7/1/1999 $6,205,297 $ 6,205,297
Total Portfolio Investments (99.04%) 260,653,438
Cash and receivables, net of liabilities (0.96%) 2,531,458
Total Net Assets (100.00%) $263,184,896
(a) Non-income producing security - No dividend paid during the past twelve
months.
MIDCAP GROWTH ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (96.16%)
Advertising (1.04%)
Snyder Communications, Inc. 1,400(a) $ 45,850
Young & Rubicam, Inc. 1,500 68,156
114,006
Air Transportation, Scheduled (0.50%)
Alaska Air Group, Inc. 1,300(a) 54,275
Aircraft & Parts (1.43%)
Gulfstream Aerospace Corp. 1,900(a) $ 128,369
United Technologies Corp. 390 27,958
156,327
Automotive Rentals, No Drivers (1.67%)
Hertz Corp., Inc. 2,950 182,900
Bakery Products (0.33%)
Earthgrains Co. 1,400 36,138
Blast Furnace & Basic Steel
Products (0.33%)
AK Steel Holding Corp. 1,600 36,000
Cement, Hydraulic (0.44%)
Centex Construction Products, Inc. 1,400 47,775
Combination Utility Services (1.17%)
KeySpan Corp. 2,500 65,937
Sierra Pacific Resources 1,700 61,838
127,775
Commercial Banks (6.46%)
City National Corp. 2,950 110,441
Cullen Frost Bankers 2,600 71,662
First Tennessee National Corp. 2,800 107,275
Mercantile Bankshares Corp. 2,850 100,819
North Fork Bancorp., Inc. 2,400 51,150
Old Kent Financial Corp. 2,625 109,922
Regions Financial Corp. 2,600 99,937
Zions Bancorp. 900 57,150
708,356
Communications Equipment (1.24%)
Network Appliance, Inc. 700(a) 39,113
RF Micro Devices, Inc. 1,300(a) 97,012
136,125
Computer & Data Processing Services (6.45%)
BMC Software, Inc. 2,200(a) 118,800
Broadvision, Inc. 900(a) 66,375
Citrix Systems, Inc. 2,200(a) 124,300
Cnet, Inc. 600(a) 34,575
Computer Task Group, Inc. 1,600 27,200
Compuware Corp. 2,900(a) 92,256
DST Systems, Inc. 800(a) 50,300
Legato Systems, Inc. 1,300(a) 75,075
Sterling Software, Inc. 2,650(a) 70,722
VERITAS Software Corp. 500(a) 47,469
707,072
Computer & Office Equipmet (4.42%)
Apple Computer, Inc. 1,200(a) 55,575
Comverse Technology, Inc. 1,400(a) 105,700
International Game Technology 2,700(a) 49,950
Lexmark International
Group, Inc., Class A 2,300(a) 151,944
NCR Corp. 2,500(a) 122,031
485,200
Crude Petroleum & Natural Gas (0.53%)
Vastar Resources, Inc. 1,100 57,681
Crushed & Broken Stone (0.62%)
Vulcan Materials Co. 1,400 67,550
Drugs (5.01%)
Biogen, Inc. 5,700(a) $ 366,581
Medimmune, Inc. 1,400(a) 94,850
Watson Pharmaceuticals, Inc. 2,500(a) 87,656
549,087
Drugs, Proprietaries, & Sundries (0.33%)
Bergen Brunswig Corp. 2,100 36,225
Eating & Drinking Places (0.96%)
Bob Evans Farms, Inc. 2,300 45,713
Brinker International, Inc. 2,200(a) 59,812
105,525
Electric Services (6.08%)
Allegheny Energy, Inc. 2,000 64,125
BEC Energy 2,200 90,750
Energy East Corp. 3,700 96,200
GPU, Inc. 2,300(a) 97,031
Ipalco Enterprises, Inc. 4,700 99,581
Oge Energy Corp. 4,600 109,250
Pinnacle West Capital Corp. 1,600 64,400
TECO Energy, Inc. 2,000 45,500
666,837
Electrical Industrial Apparatus (0.77%)
American Power Conversion 4,200(a) 84,525
Electronic Components &
Accessories (7.55%)
Altera Corp. 5,900(a) 217,194
Jabil Circuit, Inc. 1,500(a) 67,687
Linear Technology Corp. 3,300 221,925
Maxim Integrated Products, Inc. 3,000(a) 199,500
Sanmina Corp. 1,600(a) 121,400
827,706
Engines & Turbines (0.58%)
Briggs & Stratton Corp. 1,100 63,525
Family Clothing Stores (2.81%)
Ross Stores, Inc. 2,950 148,606
TJX Cos., Inc. 4,800 159,900
308,506
Fire, Marine & Casualty Insurance (0.17%)
Renaissance Holdings Ltd. 500 18,500
Gas Production & Distribution (2.54%)
El Paso Natural Gas 2,600 91,487
National Fuel Gas Co. 1,450 70,325
Nicor, Inc. 1,600 60,900
Questar Corp. 2,950 56,419
279,131
Groceries & Related Materials (0.96%)
SUPERVALU, Inc. 2,100 53,944
U.S. Foodservice, Inc. 1,200(a) 51,150
105,094
Health & Allied Services, NEC (0.46%)
Lincare Holdings, Inc. 2,000(a) 50,000
Hospitals (1.53%)
Health Management Association, Inc. 7,300(a) 82,125
Universal Health Services, Inc. 1,800(a) 85,950
168,075
Household Furniture (1.47%)
Furniture Brands International, Inc. 3,300(a) 91,988
Leggett & Platt, Inc. 2,500 69,531
161,519
Iron Ores (0.15%)
Cleveland-Cliffs, Inc. 500 16,188
Life Insurance (0.70%)
Nationwide Financial Services, Inc. 1,700 76,925
Lumber & Construction Materials (0.75%)
Crane Co. 2,600 81,738
Measuring & Controlling Devices (2.36%)
Johnson Controls, Inc. 900 62,381
Uniphase Corp. 800(a) 132,800
Waters Corp. 1,200(a) 63,750
258,931
Meat Products (0.59%)
Hormel Foods Corp. 1,600 64,400
Medical Instruments & Supplies (1.56%)
Biomet, Inc. 2,700 107,325
VISX, Inc. 800(a) 63,350
170,675
Medical Services & Health
Insurance (0.76%)
AFLAC, Inc. 1,300 62,238
PacifiCare Health Systems, Inc. 300(a) 21,581
83,819
Men's & Boy's Clothing Stores (1.22%)
Abercrombie & Fitch Co. 2,800(a) 134,400
Men's & Boys' Furnishings (0.90%)
Nautica Enterprises, Inc. 1,800(a) 30,375
V.F. Corp. 1,600 68,400
98,775
Miscellaneous Business Services (0.58%)
Convergys Corp. 3,300(a) 63,525
Miscellaneous Chemical Products (1.37%)
Cytec Industries, Inc. 2,700(a) 86,062
Solutia, Inc. 3,000 63,938
150,000
Miscellaneous Food & Kindred
Products (0.82%)
Universal Foods Corp. 4,250 89,781
Miscellaneous Plastics
Products, NEC (0.65%)
Premark International, Inc. 1,900 71,250
Miscellaneous Shopping Goods
Stores (1.66%)
Dollar Tree Stores, Inc. 2,050(a) 90,200
Zale Corp. 2,300(a) 92,000
182,200
Miscellaneous Transportation
Services (0.56%)
FMC Corp. 900(a) $ 61,481
Motion Picture Distribution (0.19%)
King World Productions, Inc. 600(a) 20,888
Motor Vehicles & Equipment (1.15%)
Magna International, Inc. 300 17,025
Meritor Automotive, Inc. 2,100 53,550
Navistar International Corp. 1,100(a) 55,000
125,575
Motorcycles, Bicycles, & Parts (0.45%)
Harley Davidson, Inc. 900 48,938
Newspapers (1.72%)
A. H. Belo Corp. 2,900(a) 57,094
Knight-Ridder, Inc. 900 49,444
Pulitzer, Inc. 800 38,850
The McClatchy Co., Class A 1,300 43,062
188,450
Office Furniture (0.40%)
Herman Miller, Inc. 2,100 44,100
Oil & Gas Field Services (1.51%)
Diamond Offshore Drilling, Inc. 2,700(a) 76,612
Transocean Offshore,
Inc.-Cayman Islands 3,400 89,250
165,862
Operative Builders (0.46%)
Lennar Corp. 2,100 50,400
Paperboard Mills (0.74%)
Caraustar Industries, Inc. 3,300 81,469
Passenger Transportation
Arrangement (1.85%)
Sabre Group Holdings, Inc. 2,950(a) 202,812
Personnel Supply Services (0.36%)
Robert Half International, Inc. 1,500(a) 39,000
Petroleum Refining (1.11%)
Sunoco, Inc. 2,400 72,450
Tosco Corp. 1,900 49,281
121,731
Plastic Materials & Synthetics (0.62%)
Crompton & Knowles Corp. 3,450 67,491
Preserved Fruits & Vegetables (0.54%)
Lancaster Colony Corp. 1,700 58,650
Professional & Commercial
Equipment (0.16%)
Patterson Dental Co. 500(a) 17,375
Radio & Television Broadcasting (0.35%)
Cox Radio, Inc. 700(a) 37,975
Radio, Television, & Computer
Stores (0.68%)
Best Buy, Inc. 1,100(a) 74,250
Railroad Equipment (0.73%)
Trinity Industries, Inc. 2,400 $ 80,400
Railroads (0.93%)
Kansas City Southern
Industries, Inc. 1,600 102,100
Research & Testing Services (1.11%)
Quintiles Transnational Corp. 2,900(a) 121,800
Savings Institutions (1.05%)
Dime Bancorp, Inc. 2,300 46,287
Golden West Financial Corp. 700 68,600
114,887
Sawmills & Planning Mills (0.85%)
Louisiana Pacific Corp. 3,900 92,625
Security Brokers & Dealers (1.32%)
Ameritrade Holding Corp. 300(a) 31,800
Edwards (A.G.), Inc. 2,500 80,625
Paine Webber Group, Inc. 700 32,725
145,150
Security & Commodity Services (0.95%)
Price (T. Rowe) Associates, Inc. 2,700 103,613
Surety Insurance (1.39%)
Radian Group, Inc. 1,200 58,575
The PMI Group, Inc. 1,500 94,219
152,794
Soap, Cleaners, & Toilet Goods (1.40%)
Dial Corp. 2,500 92,969
Estee Lauder Co., Class A 1,200 60,150
153,119
Telephone Communications (0.83%)
Centurytel, Inc. 2,300 91,425
Water Transportation Services (0.83%)
Tidewater, Inc. 3,000 91,500
Total Portfolio Investments (96.24%) 10,539,902
Cash and receivables, net of liabilities (3.84%) 420,495
Total Net Assets (100.00%) $10,960,397
(a) Non-income producing security - No dividend paid during the past twelve
months.
MIDCAP VALUE ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (97.30%)
Air Transportation, Scheduled (0.99%)
Continental Airlines, Inc. 1,400(a) $ 52,675
Aircraft & Parts (2.55%)
Gulfstream Aerospace Corp. 2,000(a) 135,125
Auto & Home Supply Stores (1.54%)
Autozone, Inc. 2,700(a) $ 81,337
Blast Furnace & Basic Steel
Products (0.59%)
AK Steel Holding Corp. 1,400 31,500
Business Credit Institutions (2.18%)
Finova Group, Inc. 2,200 115,775
Cable & Other Pay TV Services (0.75%)
Shaw Communications, Inc., Class B 1,000 39,750
Commercial Banks (6.38%)
Bank One Corp. 1,400 83,387
BankBoston Corp. 2,100 107,363
Chase Manhattan Corp. 900 77,963
Valley National Bancorp 2,410 69,288
338,001
Communications Equipment (1.15%)
Nortel Networks Corp. 700 60,769
Computer & Data Processing (4.26%)
Cadence Design Systems, Inc. 4,700(a) 59,925
Computer Associates International, Inc.1,900 104,500
Parametric Technology Corp. 4,400(a) 61,050
225,475
Computer & Office Equipment (2.03%)
Quantum Corp. 2,300(a) 55,488
Storage Technology 2,300(a) 52,325
107,813
Crude Petroleum & Natural Gas (2.48%)
Apache Corp. 1,700 66,300
USX-Marathon Group, Inc. 2,000 65,125
131,425
Department Stores (1.56%)
Harcourt General, Inc. 1,600 82,500
Drug Stores & Proprietary Stores (2.37%)
Rite Aid Corp. 5,100 125,588
Drugs (2.67%)
ALZA Corp. 1,500(a) 76,313
Centocor, Inc. 1,400(a) 65,275
141,588
Electric Services (3.24%)
Niagara Mohawk Holdings, Inc. 3,500 56,219
Texas Utilities Holdings 1,400 57,750
Unicom Corp. 1,500 57,844
171,813
Electrical Industrial Apparatus (0.24%)
UCAR International, Inc. 500(a) 12,625
Federal & Federally Sponsored
Credit (2.16%)
SLM Holdings Corp. 2,500 114,531
Finance Services (0.99%)
Cincinnati Financial Corp. 1,400 52,588
Fire, Marine & Casualty Insurance (1.01%)
Cigna Corp. 600 53,400
Gas Production & Distribution (2.53%)
UGI Corp. 2,000 $ 40,375
Williams Cos., Inc. 2,200 93,637
134,012
Glass & Glassware (1.05%)
Owens-Illinois, Inc. 1,700 55,569
Grocery Stores (1.24%)
Food Lion, Inc. 5,700 65,906
Heavy Construction, Except
Highway (1.07%)
McDermott International, Inc. 2,000 56,500
Hospitals (1.16%)
Tenet Healthcare Corp. 3,300(a) 61,256
Hotels & Motels (0.92%)
Mirage Resorts, Inc. 2,900(a) 48,575
Industrial Inorganic Chemicals (2.51%)
Praxair, Inc. 1,400 68,512
W.R. Grace & Co. 3,500(a) 64,312
132,824
Machinery, Equipment & Supplies (0.91%)
Grainger (W. W.), Inc. 900 48,431
Management & Public Relations (2.34%)
Dun & Bradstreet Corp. 3,500 124,031
Measuring & Controlling Devices (1.22%)
Teradyne, Inc. 900(a) 64,575
Meat Products (0.90%)
Conagra, Inc. 1,800 47,925
Medical Instruments & Supplies (2.16%)
Baxter International, Inc. 650 39,406
Becton, Dickinson & Co. 2,500 75,000
114,406
Medical Services & Health
Insurance (2.41%)
Pacificare Health
Systems, Inc., Class A 1,300(a) 93,519
Wellpoint Health Networks, Inc. 400(a) 33,950
127,469
Miscellaneous Transportation (1.59%)
General Motors Corp., Class H 1,500(a) 84,375
Mortgage Bankers & Brokers (3.53%)
Countrywide Credit Industries, Inc. 2,500 106,875
Indymac Mortgage Holdings, Inc. 5,000 80,000
186,875
Motion Picture Production & Services (1.53%)
AT&T Corp.-Liberty Media Group, Cl A 2,200(a) 80,850
Motor Vehicles & Equipment (3.97%)
Navistar International Corp. 1,700(a) 85,000
SPX Corp. 1,500(a) 125,250
210,250
Newspapers (2.36%)
A. H. Belo Corp. 3,200 $ 63,000
E.W. Scripps Co. 1,300 61,831
124,831
Paper Mills (1.93%)
Fort James Corp. 2,700 102,262
Petroleum Refining (4.30%)
Coastal Corp. 1,700 68,000
Lyondell Petrochemical Co. 4,100 84,562
Tosco Corp. 2,900 75,219
227,781
Photographic Equipment &
Supplies (1.00%)
Xerox Corp. 900 53,156
Plastic Materials & Synthetics (1.19%)
Hercules, Inc. 1,600 62,900
Primary Nonferrous Metals (1.45%)
Engelhard Corp. 3,400 76,925
Public Building & Related
Furniture (2.07%)
Lear Corp. 2,200(a) 109,450
Radio & Television Broadcasting (1.31%)
American Tower Corp., Class A 2,900(a) 69,600
Railroads (1.46%)
Burlington Northern Sante Fe Corp. 2,500 77,500
Sanitary Services (3.02%)
Allied Waste Industries, Inc. 8,100(a) 159,975
Search & Navigation Equipment (0.95%)
Loral Space & Communications Ltd. 2,800 50,400
Security Brokers & Dealers (1.77%)
Bear Stearns Cos., Inc. 2,000 93,500
Surety Insurance (2.84%)
Ace Ltd. 3,500 98,875
AMBAC Financial Group, Inc. 900 51,413
150,288
Telephone Communication (1.47%)
MCI Worldcom, Inc. 900(a) 77,625
Total Common Stocks 5,154,300
Preferred Stock (1.79%)
Newspapers (1.79%)
News Corp Ltd. ADR 3,000 94,688
Total Portfolio Investments (99.09%) 5,248,988
Cash and receivables, net of liabilities (0.91%) 48,192
Total Net Assets (100.00%) $5,297,180
(a) Non-income producing security - No dividend paid during the past twelve
months.
MONEY MARKET ACCOUNT
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (86.56%)
Asset Backed Securities (23.21%)
CXC Inc.;
4.85%; 7/1/1999 $ 500,000 $ 500,000
4.88%; 7/14/1999 1,700,000 1,697,004
4.81%; 7/28/1999 775,000 772,204
5.05%; 8/9/1999 850,000 845,350
Ciesco, LP;
5.22%; 8/11/1999 975,000 969,203
Corporate Asset Funding Co.;
4.81%; 7/15/1999 1,050,000 1,048,036
4.80%; 7/19/1999 725,000 723,260
4.81%; 7/23/1999 1,400,000 1,395,885
Corporate Receivables Corp.;
4.81%; 8/4/1999 1,200,000 1,194,549
4.95%; 8/5/1999 575,000 572,233
4.87%; 8/16/1999 600,000 596,266
4.86%; 8/18/1999 1,200,000 1,192,224
5.05%; 8/18/1999 300,000 297,980
Delaware Funding Corp.;
4.81%; 7/12/1999 475,000 474,302
5.03%; 7/29/1999 750,000 747,066
5.20%; 7/30/1999 1,100,000 1,095,392
5.08%; 8/20/1999 500,000 496,472
Receivables Capital Corp.;
4.84%; 7/6/1999 1,000,000 999,328
4.82%; 7/7/1999 950,000 949,237
4.85%; 7/14/1999 575,000 573,993
4.82%; 8/2/1999 337,000 335,556
5.07%; 8/6/1999 1,000,000 994,930
18,470,470
Business Credit Institutions (6.11%)
American Express Credit Corp.;
4.80%; 11/15/1999 350,000 343,607
4.80%; 12/20/1999 350,000 341,973
AON Corp.;
4.84%; 7/8/1999 750,000 749,294
5.05%; 7/9/1999 825,000 824,074
General Electric Capital Corp.;
4.79%; 8/27/1999 500,000 496,208
4.78%; 9/3/1999 300,000 297,451
4.83%; 10/12/1999 300,000 295,854
4.81%; 10/19/1999 375,000 369,488
4.78%; 11/5/1999 275,000 270,363
4.82%; 12/10/1999 275,000 269,035
4.90%; 1/20/2000 500,000 486,185
5.08%; 2/18/2000 125,000 120,908
4,864,440
Commercial Banks (1.96%)
J.P. Morgan & Co., Inc.;
4.78%; 7/13/1999 750,000 748,805
5.00%; 7/14/1999 320,000 319,422
4.82%; 12/10/1999 500,000 489,155
1,557,382
Computer & Office Equipment (0.38%)
Xerox Credit Corp.;
5.11%; 3/21/2000 300,000 299,902
Crude Petroleum & Natural Gas (1.78%)
Chevron U.K. Investment PLC;
4.82%; 8/19/1999 $ 525,000 $ 521,556
4.83%; 8/20/1999 500,000 496,646
4.83%; 8/23/1999 400,000 397,155
1,415,357
Crushed & Broken Stone (1.25%)
Vulcan Materials Co.;
4.80%; 7/13/1999 1,000,000 998,400
Department Stores (4.91%)
Sears Roebuck Acceptance Corp.;
4.90%; 7/26/1999 1,170,000 1,166,019
5.00%; 7/27/1999 950,000 946,569
4.97%; 7/30/1999 1,230,000 1,225,076
5.11%; 8/4/1999 575,000 572,225
3,909,889
Electric Services (5.59%)
Florida Power Corp.;
4.84%; 7/1/1999 425,000 425,000
Southern California Edison;
4.90%; 7/12/1999 1,550,000 1,547,679
5.00%; 8/5/1999 1,500,000 1,492,708
Teco Finance, Inc.;
5.02%; 8/10/1999 350,000 348,048
5.15%; 8/16/1999 640,000 635,789
4,449,224
Farm & Garden Machinery (3.91%)
Caterpillar Financial Services Corp.;
4.79%; 7/6/1999 1,025,000 1,024,318
4.83%; 7/19/1999 466,000 464,874
4.90%; 7/19/1999 1,000,000 997,550
Deere & Co.;
4.80%; 8/13/1999 625,000 621,417
3,108,159
Life Insurance (9.58%)
American General Corp.;
4.84%; 7/20/1999 525,000 523,659
4.85%; 7/21/1999 1,300,000 1,296,497
4.90%; 7/27/1999 500,000 498,231
5.02%; 8/2/1999 650,000 647,100
5.06%; 8/2/1999 650,000 647,077
Safeco Credit Co., Inc.;
5.05%; 8/10/1999 1,500,000 1,491,583
5.25%; 8/13/1999 1,350,000 1,341,534
5.06%; 8/17/1999 490,000 486,763
4.90%; 8/19/1999 700,000 695,331
7,627,775
Miscellaneous Electrical Equipment &
Supplies (4.71%)
Peacock Funding Corp.;
4.86%; 7/12/1999 775,000 773,849
5.10%; 8/3/1999 625,000 622,078
5.25%; 8/12/1999 1,200,000 1,192,650
4.87%; 8/31/1999 675,000 669,441
4.85%; 11/12/1999 500,000 490,974
3,748,992
Mortgage Bankers & Brokers (4.91%)
Countrywide Home Loan, Inc.;
4.92%; 7/16/1999 $ 925,000 $ 923,104
4.92%; 7/22/1999 1,000,000 997,130
4.93%; 8/3/1999 1,200,000 1,194,577
4.94%; 8/9/1999 800,000 795,719
3,910,530
Ordinance & Accessories, NEC (1.88%)
Harsco Corp.;
5.10%; 7/20/1999 1,500,000 1,495,963
Personal Credit Institutions (6.67%)
Associates First Capital Corp.;
4.83%; 7/2/1999 500,000 499,933
4.75%; 7/20/1999 175,000 174,561
4.92%; 7/22/1999 575,000 573,350
5.10%; 8/11/1999 575,000 571,660
Comoloco, Inc.;
4.62%; 7/23/1999 250,000 249,294
4.88%; 8/27/1999 450,000 446,523
4.74%; 8/30/1999 200,000 198,420
4.80%; 9/17/1999 500,000 494,800
4.91%; 9/24/1999 500,000 494,204
4.80%; 11/9/1999 550,000 540,393
4.83%; 11/19/1999 250,000 245,271
5.28%; 3/17/2000 150,000 144,280
Household Finance Corp.;
5.03%; 8/6/1999 675,000 671,605
5,304,294
Petroleum Refining (0.94%)
Motiva Enterprises, LLC;
4.85%; 7/20/1999 425,000 423,912
5.18%; 8/12/1999 325,000 323,036
746,948
Security Brokers & Dealers (6.91%)
Goldman Sachs Group, LP;
4.82%; 9/2/1999 775,000 768,463
4.84%; 9/17/1999 375,000 371,067
4.83%; 9/17/1999 500,000 494,767
Merrill Lynch & Co., Inc.;
5.12%; 6/25/1999 500,000 498,080
4.84%; 7/16/1999 1,275,000 1,272,429
4.81%; 7/22/1999 400,000 398,878
Morgan Stanley Group, Inc.;
4.83%; 7/8/1999 500,000 499,530
4.83%; 7/9/1999 700,000 699,249
4.83%; 7/29/1999 500,000 498,122
5,500,585
Soap, Cleaners & Toilet Goods (0.60%)
Clorox Co.;
4.83%; 7/29/1999 480,000 478,197
Telephone Communication (1.26%)
Ameritech Capital Funding Corp.;
4.81%; 7/2/1999 1,000,000 999,866
Total Commercial Paper 68,886,373
Bonds (14.93%)
Beverages (0.44%)
PepsiCo, Inc. Notes;
6.80%; 5/15/2000 $ 350,000 $ 353,054
Business Credit Institutions (5.38%)
American Express Credit Corp.
Notes; 6.12%; 6/15/2000 167,000 168,005
CIT Group Holdings, Inc.
Notes; 6.25%; 10/25/1999 250,000 250,863
Ford Motor Credit Co.
Debentures; 9.50%; 4/15/2000 155,000 159,813
Ford Motor Credit Co. Notes;
6.37%; 9/15/1999 250,000 250,614
7.75%; 10/1/1999 315,000 316,791
8.38%; 1/15/2000 405,000 411,459
6.38%; 4/15/2000 1,085,000 1,092,054
General Motors Acceptance Corp.
Debentures; 8.40%; 10/15/1999 450,000 453,950
Notes; 6.15%; 9/20/1999 350,000 350,761
7.00%; 3/1/2000 320,000 323,209
Morgan Guaranty Trust Co. Notes;
5.75%; 10/8/1999 500,000 500,833
4,278,352
Commercial Banks (1.01%)
Norwest Corp. Notes;
6.00%; 3/15/2000 236,000 236,976
Senior Notes;
6.75%; 5/12/2000 567,000 571,591
808,567
Fire, Marine & Casualty Insurance (0.44%)
Commercial Credit Co. Notes;
6.70%; 8/1/1999 350,000 350,423
Miscellaneous Chemical Products (0.23%)
Dupont EI de Nemours Co.
Debentures; 9.15%; 4/15/2000 175,000 180,177
Miscellaneous Equipment Rental &
Leasing (2.08%)
International Lease Finance Corp. Notes;
6.50%; 8/15/1999 650,000 650,948
6.12%; 11/1/1999 300,000 300,922
5.75%; 12/15/1999 150,000 150,343
6.20%; 5/1/2000 550,000 553,604
1,655,817
Personal Credit Institutions (4.73%)
American General Finance Corp.
Notes; 7.70%; 10/15/1999 275,000 276,914
8.00%; 2/15/2000 150,000 152,112
7.25%; 4/15/2000 350,000 355,034
Senior Notes; 6.87%; 7/1/1999 155,000 155,000
Associates Corp. of North America
Notes; 8.25%; 12/1/1999 100,000 101,226
6.00%; 3/15/2000 305,000 306,468
Senior Notes;
7.25%; 9/1/1999 392,000 393,092
9.12%; 4/1/2000 250,000 256,293
Avco Financial Services, Inc. Notes;
5.50%; 4/1/1999 145,000 145,006
Commercial Credit Co. Notes;
6.00%; 4/15/2000 $ 595,000 $ 596,813
6.75%; 5/15/2000 140,000 140,970
Norwest Financial, Inc. Notes;
6.05%; 11/19/1999 780,000 782,642
5.12%; 4/15/2000 100,000 99,833
3,761,403
Photographic Equipment &
Supplies (0.13%)
Xerox Corp. Debentures;
9.75%; 3/15/2000 100,000 103,008
Security Brokers & Dealers (0.36%)
Morgan Stanley Group, Inc. Notes;
7.50%; 9/1/1999 289,000 289,942
Variety Stores (0.13%)
Wal-Mart Stores, Inc. Notes;
6.12%; 10/1/1999 100,000 100,219
Total Bonds 11,880,962
Total Portfolio Investments (101.49%) 80,767,335
Liabilities, net of cash and receivables (-1.49%) (1,185,197)
Total Net Assets (100.00%) $79,582,138
REAL ESTATE ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (96.23%)
Apartment REITs (19.11%)
Apartment Investment &
Management Co. 11,300 $ 483,075
Archstone Communities Trust 16,000 351,000
Avalonbay Communities, Inc. 10,000 370,000
Berkshire Realty Co., Inc. 13,600 157,250
Charles E. Smith
Residential Realty, Inc. 1,700 57,694
Equity Residential Properties Trust 12,800 576,800
Gables Residential Trust 11,300 272,612
2,268,431
Factory Outlet REITs (1.88%)
Chelsea GCA Realty, Inc. 6,000 222,750
Hotel REITs (8.42%)
Felcor Lodging Trust, Inc. 7,000 145,250
Host Marriott Corp. 24,674 293,004
Meristar Hospitality Corp. 12,800 287,200
Sunstone Hotel Investors, Inc. 32,200 273,700
999,154
Mall REITs (12.79%)
CBL & Associates Properties, Inc. 14,900 392,988
General Growth Properties, Inc. 9,500 337,250
Simon Property Group, Inc. 11,900 301,962
The Maerich Co. 18,500 485,625
1,517,825
Manufactured Housing REITs (4.87%)
Manufactured Home Communities, Inc. 13,200 $ 343,200
Sun Communities, Inc. 6,600 234,300
577,500
Mortgage, Mixed Use &
Miscellaneous REITs (3.71%)
Bradley Real Estate, Inc. 21,200 439,900
Net Lease REITs (2.33%)
Trinet Corporate Realty Trust, Inc. 10,000 276,875
Office & Industrial REITs (34.12%)
Arden Realty Group, Inc. 11,500 283,187
Boston Properties, Inc. 5,000 179,375
Cabot Industrial Trust 22,600 480,250
Centerpoint Properties Corp. 1,800 65,925
Equity Office Properties Trust 19,400 497,125
Highwoods Properties, Inc. 10,300 282,606
Kilroy Realty Corp. 10,000 243,125
Liberty Property Trust 7,600 189,050
Mack-Cali Realty Corp. 6,100 188,719
Prologis Trust 24,980 505,845
Reckson Associates
Realty Corp., Class B 18,401 439,319
SL Green Realty Corp. 17,600 359,700
Spieker Properties, Inc. 8,650 336,269
4,050,495
Self Storage REITs (2.52%)
Storage USA, Inc. 9,400 299,625
Shopping Center REITs (6.48%)
AMB Property Corp. 2,600 61,100
Developers Diversified Realty Corp. 17,500 290,938
Federal Realty Investment Trust 14,700 337,181
Pan Pacific Retail Properties, Inc. 4,100 79,694
768,913
Total Common Stocks 11,421,468
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (2.92%)
Personal Credit Institutions (2.92%)
Investment In Joint Trade Account,
Associates Corp.; 5.75%; 7/1/1999 $346,201 $ 346,201
Total Portfolio Investments (99.15%) 11,767,669
Cash and receivables, net of liabilities (0.85%) 100,355
Total Net Assets (100.00%) $11,868,024
SMALLCAP ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (94.19%)
Blast Furnace & Basic Steel
Products (1.25%)
Carpenter Technology Corp. 5,600 $ 159,950
NS Group, Inc. 7,100(a) 65,675
225,625
Commercial Banks (1.45%)
Cullen Frost Bankers 6,000 165,375
Valley National Bancorp 3,360 96,600
261,975
Commercial Printing (1.28%)
Bowne & Co., Inc. 9,800 127,400
World Color Press, Inc. 3,800(a) 104,500
231,900
Communications Equipment (1.39%)
Spectrian Corp. 6,400(a) 92,800
Tekelec 13,000(a) 158,438
251,238
Computer & Data Processing Services (11.28%)
Advanced Communications System, Inc. 7,750(a) 106,078
Ciber, Inc. 11,000(a) 210,375
Cotelligent, Inc. 9,000(a) 70,312
Cybersource Corp. 18,100(a) 266,975
GTECH Holdings Corp. 3,100(a) 73,044
High Speed Access Corp. 6,700(a) 171,687
Hypercom Corp. 29,400(a) 281,138
ICG Communications, Inc. 13,000(a) 277,875
SPSS, Inc. 4,000(a) 102,750
Synopsys, Inc. 3,600(a) 198,675
Tenfold Corp. 8,800(a) 279,400
2,038,309
Computer & Office Equipment (2.04%)
Box Hill Systems Corp. 40,000(a) 235,000
Neomagic Corp. 8,000(a) 67,250
Smart Modular Technologies, Inc. 3,800(a) 66,024
368,274
Construction & Related Machinery (1.15%)
JLG Industries, Inc. 10,200 207,825
Crude Petroleum & Natural Gas (0.85%)
Nuevo Energy Co. 11,600(a) 153,700
Drugs (3.95%)
Chirex, Inc. 6,700(a) 215,237
Dura Pharmaceuticals, Inc. 6,600(a) 78,788
Geltex Pharmaceuticals, Inc. 8,000(a) 144,000
Inhale Therapeutic Systems, Inc. 5,300(a) 126,206
Matritech, Inc. 114,000(a) 149,625
713,856
Drugs, Proprietaries, & Sundries (0.92%)
Bindley Western Industries, Inc. 7,200 166,050
Eating & Drinking Places (3.71%)
Morton's Restaurant Group, Inc. 13,000(a) $ 247,812
Rubio's Restaurants, Inc. 17,000(a) 262,438
Ruby Tuesday, Inc. 8,400 159,600
669,850
Electric Services (0.92%)
TNP Enterprises, Inc. 4,600 166,750
Electronic Components & Accessories (6.46%)
Benchmark Electronics, Inc. 8,000(a) 287,500
DII Group, Inc. 14,100(a) 526,106
Hadco Corp. 2,600(a) 103,350
Microchip Technology, Inc. 5,300(a) 251,087
1,168,043
Fabricated Structural Metal Products (0.98%)
Aavid Thermal Technologies, Inc. 7,800(a) 176,475
Family Clothing Stores (0.87%)
Pacific Sunwear of California, Inc. 6,450(a) 157,219
Fire, Marine & Casualty Insurance (0.93%)
Horace Mann Educators 6,200 168,563
Footwear, Except Rubber (1.08%)
Wolverine World Wide, Inc. 13,900 194,600
Gas Production & Distribution (0.90%)
Piedmont Natural Gas Co. 5,200 161,850
General Industrial Machinery (1.87%)
Kaydon Corp. 4,800 161,400
Regal-Beloit Corp. 7,500 177,187
338,587
Grain Mill Products (0.80%)
Ralcorp Holdings, Inc. 9,000(a) 144,563
Greeting Cards (0.93%)
American Greetings Corp. 5,600 168,700
Groceries & Related Products (0.96%)
Universal Corp. 6,100 173,469
Horticultural Specialties (0.94%)
Hines Horticulture, Inc. 17,000(a) 170,000
Hospitals (0.82%)
Universal Health Services, Inc., Class B 3,100(a) 148,025
Hotels & Motels (0.23%)
Lodgian, Inc. 6,200(a) 40,688
Industrial Machinery, NEC (0.88%)
Industrial Distribution Group, Inc. 31,300(a) 158,456
Industrial Organic Chemicals (1.76%)
CFC International, Inc. 29,600(a) 318,200
Jewlery, Silverware, & Plated Ware (0.91%)
Jostens, Inc. 7,800 164,288
Life Insurance (1.10%)
Mony Group, Inc. 6,100 $ 199,013
Measuring & Controlling Devices (0.66%)
Integrated Measurement Systems, Inc. 9,300(a) 119,738
Meat Products (0.92%)
Michael Foods, Inc. 7,100 166,850
Medical & Dental Laboratories (0.43%)
Urocor, Inc. 15,900(a) 78,009
Medical Instruments & Supplies (2.78%)
ADAC Laboratories 23,500(a) 170,375
Empi, Inc. 6,900(a) 168,187
Focal, Inc. 4,900(a) 36,750
Hologic, Inc. 22,500(a) 126,563
501,875
Men's & Boys' Clothing Stores (1.31%)
Hot Topic, Inc. 8,800(a) 237,600
Men's & Boys' Furnishings (4.38%)
Nautica Enterprises, Inc. 9,700(a) 163,687
Quiksilver, Inc. 10,000(a) 260,625
Tommy Hilfiger Corp. 5,000(a) 367,500
791,812
Metal Forgings & Stampings (0.40%)
Varlen Corp. 1,775 71,888
Metalworking Machinery (1.15%)
Riviera Tool Co. 42,000(a) 207,375
Miscellaneous Non-Metallic Mineral
Products (0.18%)
Hexcel Corp. 3,200(a) 32,400
Miscellaneous Apparel &
Accessory Stores (0.95%)
The Buckle, Inc. 6,000(a) 172,500
Miscellaneous Chemical Products (1.02%)
H.B. Fuller Co. 2,700 184,613
Miscellaneous Converted Paper
Products (0.73%)
Shorewood Packaging Corp. 7,200(a) 132,750
Miscellaneous Electrical Equipment &
Supplies (0.51%)
Motorcar Parts & Accessories 17,000(a) 91,375
Miscellaneous Equipment Rental &
Leasing (1.48%)
Rent-A-Center, Inc. 10,000(a) 240,000
T & W Financial Corp. 4,000(a) 28,250
268,250
Miscellaneous Fabricated Metal
Products (1.01%)
Watts Industries, Inc. 9,500 182,281
Miscellaneous Manufacturers (0.88%)
Russ Berrie & Co. 6,400 $ 158,400
Miscellaneous Shopping Goods
Stores (0.69%)
Zale Corp. 3,100(a) 124,000
Miscellaneous Textile Goods (0.96%)
Kellwood Co. 6,400 173,600
Motor Vehicles & Equipment (0.95%)
United Auto Group, Inc. 16,800(a) 172,200
Motor Vehicles, Parts & Supplies (0.99%)
Keystone Automotive Industries, Inc. 10,300(a) 178,963
Office Furniture (0.87%)
Kimball International, Inc., Class B 9,300 156,938
Oil & Gas Field Services (1.32%)
Marine Drilling Co., Inc. 4,700(a) 64,331
Pride International, Inc. 16,500(a) 174,281
238,612
Personal Credit Institutions (0.01%)
Firstplus Financial Group, Inc. 3,000(a) 938
Personnel Supply Services (1.71%)
On Assignment, Inc. 9,000(a) 235,125
RemedyTemp, Inc. 5,500(a) 74,250
309,375
Petroleum Refining (1.55%)
IRI International Corp. 22,000(a) 101,750
Valero Energy Corp. 8,200 175,787
277,537
Photographic Equipment &
Supplies (0.73%)
Imax Corp. 5,900(a) 132,750
Public Building & Related
Furniture (0.28%)
BE Aerospace, Inc. 2,700(a) 50,456
Rubber & Plastics Footwear (0.80%)
Vans, Inc. 12,700(a) 145,455
Savings Institutions (3.78%)
Commercial Federal Corp. 7,000 162,312
Community First Bankshares, Inc. 8,000 191,000
MAF Bancorp, Inc. 7,000 169,750
Reliance Bancorp, Inc. 5,800 160,225
683,287
Search & Navigation Equipment (0.97%)
Anaren Microwave, Inc. 8,400(a) 175,350
Secondary Non-Ferrous Metals (0.23%)
Titanium Metals Corp. 3,800 42,275
Soap, Cleaners & Toilet Goods (1.63%)
Carter-Wallace, Inc. 9,400 170,962
Digene Corp. 11,200(a) 123,725
294,687
Sugar & Confectionery Products (0.68%)
Sherwood Brands, Inc., Class A 38,000(a) $ 123,500
Surety Insurance (0.94%)
Enhance Financial Services Group, Inc. 8,600 169,850
Telephone Communication (2.68%)
Audiovox Corp., Class A 21,800(a) 239,800
Winstar Communications, Inc. 5,000(a) 243,750
483,550
Trucking & Courier Services, Except
Air (1.02%)
Werner Enterprises, Inc. 8,900 184,675
Total Common Stocks 17,021,805
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (4.48%)
Personal Credit Institutions (4.48%)
Investment in Joint Trade Account,
Associates Corp.; 5.75%; 7/1/1999 $809,303 $ 809,303
Total Portfolio Investments (98.67%) 17,831,108
Cash and receivables, net of liabilities (1.33%) 240,465
Total Net Assets (100.00%) $18,071,573
(a) Non-income producing security - No dividend paid during the past twelve
months.
SMALLCAP GROWTH ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (95.69%)
Accounting, Auditing &
Bookkeeping (1.24%)
Profit Recovery Group
International, Inc. 3,550(a) $ 167,959
Advertising (1.08%)
TMP Worldwide, Inc. 2,300(a) 146,050
Apparel, Piece Goods & Notions (1.01%)
Men's Wearhouse, Inc. 5,350(a) 136,425
Business Credit Institutions (2.60%)
Resource America, Inc. 24,150 $ 350,175
Communications Equipment (3.08%)
RF Micro Devices, Inc. 1,500(a) 111,938
Sawtek, Inc. 6,600(a) 302,775
414,713
Computer & Data Processing
Services (17.96%)
Aspen Technology, Inc. 5,500(a) 64,625
CMGI, Inc. 800(a) 91,250
Concur Technologies, Inc. 3,400(a) 95,625
Globix Corp. 1,000(a) 44,187
ICG Communications, Inc. 3,600(a) 76,950
Lycos, Inc. 400(a) 36,750
Macromedia, Inc. 2,550(a) 89,887
Mercury Interactive Corp. 1,800(a) 63,675
Mindspring Enterprises, Inc. 800(a) 35,450
MMC Networks, Inc. 8,900(a) 398,275
New Era of Networks, Inc. 5,600(a) 246,050
PRI Automation, Inc. 6,850(a) 248,312
Saga Systems, Inc. 7,300(a) 93,075
Sapient Corp. 1,700(a) 96,263
Spyglass, Inc. 8,350(a) 168,044
Tier Technologies, Class B 12,350(a) 86,450
TSI International Software Ltd. 10,100(a) 286,588
USWeb Corp. 9,000(a) 199,688
2,421,144
Computer & Office Equipment (3.44%)
Computer Network Tech Corp. 11,000(a) 237,875
Proxim, Inc. 3,900(a) 226,200
464,075
Crude Petroleum & Natural Gas (3.61%)
Basin Exploration, Inc. 12,850(a) 257,803
Devon Energy Corp. 6,400 228,800
486,603
Drugs (1.66%)
IDEC Pharmaceuticals 2,900(a) 223,481
Drugs, Proprietaries & Sundries (1.66%)
Priority Healthcare Corp., Class B 6,500(a) 224,250
Electronic Components &
Accessories (8.14%)
American Xtal Technology, Inc. 7,150(a) 170,259
Applied Micro Circuits Corp. 4,750(a) 390,688
Cree Research, Inc. 5,000(a) 384,688
Dupont Photomasks, Inc. 3,150(a) 150,806
1,096,441
Engineering & Architectural
Services (1.84%)
Tetra Tech, Inc. 15,031(a) 248,016
Health & Allied Services, NEC (3.40%)
Accredo Health, Inc. 7,600(a) 248,900
Renal Care Group, Inc. 8,100(a) 209,588
458,488
Legal Services (1.51%)
Pre-Paid Legal Services, Inc. 7,500(a) 203,906
Machinery, Equipment & Supplies (4.15%)
Aviation Sales 7,000(a) $ 276,500
VWR Scientific Products Corp. 7,700(a) 282,494
558,994
Management & Public Relations (2.15%)
Diamond Technology Partners, Inc. 6,300(a) 140,963
Whitman-Hart, Inc. 4,700(a) 149,225
290,188
Medical & Dental Laboratories (1.29%)
IDEXX Laboratories, Inc. 7,450(a) 173,678
Medical Instruments & Supplies (1.53%)
Ventana Medical Systems 10,800(a) 206,550
Miscellaneous Business Services (0.61%)
Forrester Research, Inc. 3,300(a) 82,500
Miscellaneous Electrical Equipment &
Supplies (1.71%)
Universal Electronics, Inc. 8,200(a) 230,113
Miscellaneous Equipment Rental &
Leasing (1.50%)
Rent-Way, Inc. 8,200(a) 201,925
Miscellaneous Special Trade
Contractors (2.23%)
Dycom Industries, Inc. 5,375(a) 301,000
Mortgage Bankers & Brokers (0.83%)
Matrix Bancorp, Inc. 8,000(a) 112,000
Non-Store Retailers (1.07%)
J. Jill Group, Inc. 9,900(a) 144,787
Oil & Gas Field Services (3.32%)
Atwood Oceanics, Inc. 3,350(a) 104,687
Paradigm Geophysical Ltd. 3,800(a) 25,888
Precision Drilling Corp. 14,000(a) 266,875
Veritas DGC, Inc. 2,750(a) 50,359
447,809
Personal Credit Institutions (1.15%)
Metris Companies, Inc. 3,800 154,850
Personnel Supply Services (0.99%)
Labor Ready, Inc. 4,100(a) 133,250
Radio & Television Broadcasting (3.45%)
Radio One, Inc. 3,900(a) 181,350
SBS Broadcasting S.A. 8,800(a) 283,800
465,150
Research & Testing Services (0.77%)
Cephalon, Inc. 6,000(a) 104,250
Sanitary Services (3.84%)
Casella Waste Systems, Inc. 11,000(a) 286,000
Stericycle, Inc. 5,950(a) 80,697
US Liquids, Inc. 7,150(a) 149,256
515,953
Savings Institutions (0.60%)
Net.B@nk, Inc. 600(a) $ 22,800
Telebanc Financial Corp. 1,500(a) 58,125
80,925
Search & Navigation Equipment (1.31%)
Orbital Sciences Corp. 7,500(a) 177,187
Ship & Boat Building &
Repairing (0.75%)
Dril-Quip, Inc. 4,400(a) 100,925
Special Industry Machinery (3.99%)
Asyst Technologies, Inc. 9,200(a) 275,425
Brooks Automation, Inc. 9,650(a) 261,153
536,578
Telephone Communication (6.22%)
Concentric Network Corp. 2,100(a) 83,475
E.Spire Communications, Inc. 9,500(a) 100,344
Metromedia Fiber Networks, Inc. 3,000(a) 107,812
Research in Motion 13,600(a) 275,400
Viatel, Inc. 4,800(a) 269,400
836,431
Total Portfolio Investments (95.69%) 12,896,769
Cash and receivables, net of liabilities (4.31%) 581,067
Total Net Assets (100.00%) $13,477,836
(a) Non-income producing security - No dividend paid during the past twelve
months.
SMALLCAP VALUE ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (96.00%)
Accounting, Auditing, & Bookkeeping (0.37%)
Profit Recovery Group
International, Inc. 700(a) $ 33,118
Advertising (0.26%)
24/7 Media, Inc. 600(a) 23,100
Air Transportation, Scheduled (0.24%)
Alaska Air Group, Inc. 500(a) 20,875
Asphalt Paving & Roofing Materials (0.35%)
Elcor Corp. 700 30,581
Automotive Parking (0.12%)
Central Parking Corp. 300 10,275
Bakery Products (0.69%)
Keebler Foods Co. 2,000(a) 60,750
Beauty Shops (0.34%)
Regis Corp. 1,550 $ 29,741
Beverages (0.52%)
Adolph Coors Co., Class B 500 24,750
Beringer Wine Estates 500(a) 20,891
45,641
Business Credit Institutions (0.35%)
Heller Financial, Inc. 1,100 30,594
Combination Utility Services (1.23%)
Central Hudson Gas & Electric Corp. 2,600 109,200
Commercial Banks (6.26%)
BancorpSouth, Inc. 300 5,437
Bank of Commerce 1,400 28,525
Colonial Bank Group, Inc. 5,400 75,263
GBC Bancorp. 2,200 44,550
Gold Banc Corp., Inc. 400 5,250
Hamilton Bancorp., Inc. 1,900(a) 45,600
Hudson United Bancorp 2,800 85,750
National Commerce Bancorp. 4,800 105,000
Prime Bancshares, Inc. 900 16,087
Republic Security Financial 3,100 25,963
Summit Bancshares, Inc. 2,300 39,962
Sun Bancorp., Inc. 1,150 20,125
TrustCo Bank Corp. 760 20,425
Westamerica Bancorp. 1,000 36,500
554,437
Commercial Sports (0.07%)
Florida Panther Holdings, Inc. 600 6,412
Communications Equipment (0.61%)
ANTEC Corp. 500(a) 16,031
Copper Mountain Networks, Inc. 100(a) 7,725
Juniper Networks, Inc. 200(a) 29,800
53,556
Communications Services, NEC (1.34%)
ITC Deltacom, Inc. 800(a) 22,400
L-3 Communications Holdings, Inc. 2,000(a) 96,625
119,025
Computer & Data Processing (2.99%)
Acxiom Corp. 100(a) 2,494
Alloy Online, Inc. 200(a) 2,287
Aspect Development, Inc. 100(a) 1,850
Brocade Communications Systems, Inc. 100(a) 9,644
Cais Internet, Inc. 200(a) 3,675
CareInsite, Inc. 300(a) 14,175
CCC Information Services Group 200(a) 2,575
drkoop.com, Inc. 300(a) 4,781
Equant ADR 500(a) 47,062
eToys, Inc. 300(a) 12,225
IDX Systems Corp. 300(a) 6,769
Macromedia, Inc. 100(a) 3,525
Medquist, Inc. 700(a) 30,625
MicroStrategy, Inc. 700(a) 26,512
New Era of Networks, Inc. 100(a) 4,394
Newgen Results Corp. 300(a) 3,600
Northpoint Communications 300(a) 10,950
Phone.com, Inc. 200(a) 11,200
Razorfish, Inc. 100(a) 3,706
Redback Networks 100(a) 12,556
Rhythms Netconnections, Inc. 200(a) 11,675
Saleslogix Corp. 700(a) 10,412
Software.com, Inc. 200(a) 4,638
Source Information Management Co. 700(a) 9,450
TheStreet.com, Inc. 200(a) 7,200
USWeb Corp. 300(a) 6,656
264,636
Construction & Related Machinery (2.59%)
Cooper Cameron Corp. 2,500(a) 92,656
Manitowoc Co., Inc. 600 24,975
Smith International, Inc. 1,600(a) 69,500
Terex Corp. 1,400(a) 42,612
229,743
Crude Petroleum & Natural Gas (1.80%)
Barrett Resources Corp. 300(a) 11,513
Devon Energy Corp. 1,600 57,200
Newfield Exploration Co. 3,200(a) 91,000
159,713
Cut Stone & Stone Products (0.02%)
Rock of Ages Corp. 200(a) 2,050
Department Stores (0.67%)
Ames Department Stores, Inc. 1,300(a) 59,313
Drugs (1.16%)
Human Genome Sciences, Inc. 1,200(a) 47,400
IDEC Pharmaceuticals 100(a) 7,706
Ligand Pharmaceuticals, Class B 1,600(a) 17,800
Millenium Pharmaceuticals 500(a) 18,000
SangStat Medical Corp. 700(a) 12,075
102,981
Electric Services (1.37%)
Central Louisiana Electric 4,000 121,500
Electrical Goods (0.21%)
WESCO International, Inc. 900(a) 18,450
Electrical Industrial Apparatus (0.25%)
National R V Holdings 900(a) 22,106
Electrical Work (0.37%)
CapRock Communications Corp. 800 32,400
Electronic Components &
Accessories (2.19%)
Applied Micro Circuits Corp. 700(a) 57,575
ATMI, Inc. 1,800 53,550
Corcord Communication 200(a) 9,000
Exar Corp. 100(a) 2,475
hi/fn, Inc. 300(a) 22,838
Maker Communications, Inc. 100(a) 3,100
PLX Technology, Inc. 100(a) 4,738
SDL, Inc. 800(a) 40,850
194,126
Elementary & Secondary Schools (0.50%)
Education Management Corp. 1,400(a) $ 29,050
ITT Educational Services 600(a) 15,638
44,688
Engineering & Architectural Services (0.39%)
Tetra Tech, Inc. 2,075(a) 34,238
Family Clothing Stores (0.51%)
Urban Outfitters, Inc. 1,800(a) 45,225
Farm & Garden Machinery (0.37%)
New Holland NV 1,900 32,538
Finance Services (0.02%)
Intelligent Life Corp. 200(a) 1,312
Fire, Marine & Casualty Insurance (1.65%)
Commerce Group, Inc. 600 14,625
Fremont General Corp. 1,700 32,088
Renaissance Holdings Ltd. 2,700 99,900
146,613
Freight Transportation Arrangement (1.12%)
C.H. Robinson Worldwide, Inc. 2,700 99,225
Funeral Services & Crematories (0.04%)
Carriage Services, Inc. 200(a) 3,750
Gas Production & Distribution (3.43%)
Atmos Energy Corp. 4,700 117,500
Energen Corp. 1,800 33,525
Public Service Co. of North Carolina 1,400 40,950
Washington Gas Light Co. 1,500 39,000
Wicor, Inc. 2,600 72,638
303,613
General Industrial Machinery (1.09%)
Applied Science & Technology 800 18,000
IDEX Corp. 2,400 78,900
96,900
Health & Allied Services, NEC (0.16%)
Renal Care Group, Inc. 550(a) 14,231
Home Health Care Services (0.16%)
Women First Healthcare, Inc. 1,100(a) 14,575
Hotels & Motels (1.20%)
Extended Stay of America 1,800(a) 21,600
MGM Grand, Inc. 1,400(a) 68,600
Sunterra Corp. 600(a) 8,362
Vistana, Inc. 500(a) 7,875
106,437
Household Appliance Stores (0.08%)
Williams Sonoma, Inc. 200(a) 6,962
Household Furniture (1.44%)
Furniture Brands International, Inc. 2,000(a) 55,750
Stanley Furniture Co., Inc. 3,200 72,000
127,75
Individual & Family Services (0.47%)
Sunrise Assisted Living, Inc. 1,200(a) 41,850
Industrial Inorganic Chemicals (2.98%)
Albemarle Corp. 3,400 $ 78,625
General Chemical Group, Inc. 5,400 16,875
Georgia Gulf Corp. 5,000 84,375
Mineral Technologies, Inc. 900 50,231
USEC, Inc. 2,300 34,213
264,319
Industrial Machinery, NEC (0.52%)
Applied Power, Inc. 1,700 46,431
Industrial Organic Chemicals (0.56%)
Bush Boake Allen, Inc. 1,700(a) 49,725
Insurance Agents, Brokers & Services (0.85%)
E.W. Blanch Holdings, Inc. 1,100 75,006
Laundry, Cleaning & Garment (0.41%)
Steiner Leisure, Ltd. 1,200(a) 36,375
Life Insurance (1.09%)
Annuity & Life Re (Holdings), Ltd. 3,300 74,043
FBL Financial Group, Inc. 1,000 19,500
MONY Group, Inc. 100 3,263
96,806
Machinery, Equipment & Supplies (1.00%)
National Oilwell, Inc. 2,000(a) 25,375
Willis Lease Financial Corp. 3,900(a) 63,619
88,994
Management & Public Relations (0.58%)
Metzler Group, Inc. 800(a) 22,100
Nielsen Media Research 1,000(a) 29,250
51,350
Measuring & Controlling Devices (1.19%)
Input/Output, Inc. 1,800(a) 13,613
Mettler-Toledo International 2,800(a) 69,475
MKS Instruments, Inc. 1,200(a) 22,350
105,438
Medical & Dental Laboratories (0.21%)
IDEXX Laboratories, Inc. 800(a) 18,650
Medical Instruments & Supplies (1.32%)
Affymetrix, Inc. 100(a) 4,937
Armor Holdings, Inc. 1,400(a) 14,612
CONMED Corp. 1,000(a) 30,625
Kensey Nash Corp. 1,200 9,600
Minimed, Inc. 200(a) 15,388
Novoste Corp. 200(a) 4,200
Osteotech, Inc. 550(a) 15,813
ResMed, Inc. 300(a) 9,956
Vital Signs, Inc. 100 1,994
Xomed Surgical Products, Inc. 200(a) 9,738
116,863
Men's & Boys' Furnishings (0.10%)
Columbia Sportswear Co. 600(a) 9,225
Metal Forgings & Stamping (0.90%)
ABC Rail Products Corp. 1,400(a) 28,700
Tower Automotive, Inc. 2,000(a) 50,875
79,575
Metals & Minerals, Except
Petroleum (1.03%)
Commercial Metals Co. 3,200 $ 91,200
Metalworking Machinery (0.18%)
Kennametal, Inc. 500 15,500
Miscellaneous Amusement, Recreation
Services (0.65%)
Anchor Gaming, Inc. 1,200(a) 57,675
Miscellaneous Business Services (0.04%)
Wind River Systems, Inc. 200(a) 3,213
Miscellaneous Durable Goods (0.95%)
HA-LO Industries, Inc. 2,600(a) 25,675
Schnitzer Steel
Industries, Inc., Class A 2,600 58,338
84,013
Miscellaneous Equipment Rental &
Leasing (0.20%)
Aaron Rents, Inc. 800 17,800
Miscellaneous Fabricated Metal
Products (0.43%)
Amcast Industrial Corp. 700 11,419
Shaw Group, Inc. 1,700(a) 26,987
38,406
Miscellaneous Food & Kindred
Products (0.38%)
American Italian Pasta 1,100(a) 33,412
Miscellaneous Food Stores (0.13%)
General Nutrition Cos. 500(a) 11,656
Miscellaneous Investing (9.28%)
Burnham Pacific Properties, Inc. 5,100 62,794
Centerpoint Properties Corp. 700 25,637
Cousins Properties, Inc. 3,100 104,819
Franchise Financial Corp. 800 17,600
Manufactured Home Communities, Inc. 3,600 93,600
Meristar Hospitality Corp. 4,364 97,917
Mills Corp. 2,500 54,219
National Golf Properties, Inc. 2,300 55,919
Post Properties, Inc. 3,000 123,000
The Macerich Co. 2,600 68,250
Weeks Corp. 3,900 118,950
822,705
Miscellaneous Manufacturers (1.23%)
Blyth Industries, Inc. 900(a) 30,938
Gentek, Inc. 5,600 77,700
108,638
Miscellaneous Plastics
Products, NEC (0.27%)
AptarGroup, Inc. 800 24,000
Miscellaneous Shopping Goods
Stores (0.50%)
Zale Corp. 1,100(a) $ 44,000
Mortgage Bankers & Brokers (0.96%)
Litchfield Financial Corp. 4,600 77,912
MicroFinancial, Inc. 500 7,156
85,068
Motion Picture Production & Services (0.64%)
Cinar Films, Inc., Class B 2,300(a) 56,350
Motor Vehicles & Equipment (0.45%)
American Axle & Manufacturing
Holdings, Inc. 800(a) 11,200
Kroll O' Gara Co. 700(a) 15,444
Wabash National Corp. 700 13,562
40,206
Motor Vehicles, Parts & Supplies (0.30%)
Dura Automotive System 800 26,600
New & Used Car Dealers (0.60%)
Lithia Motors, Inc. 1,600(a) 32,800
Sonic Automotive, Inc. 1,500(a) 20,625
53,425
Non-Ferrous Rolling & Drawing (1.53%)
Mueller Industries, Inc. 4,000(a) 135,750
Non-Store Retailers (0.24%)
barnesandnoble.Com, Inc. 600(a) 10,800
Stamps.Com, Inc. 600(a) 10,500
21,300
Nursing & Personal Care Facilities (0.39%)
Alterra Healthcare Corp. 2,500(a) 34,375
Office Furniture (0.43%)
Herman Miller, Inc. 1,100 23,100
Hon Industries, Inc. 500 14,594
37,694
Oil & Gas Field Services (0.61%)
Ensco International, Inc. 1,400 27,912
Global Marine, Inc. 1,700(a) 26,244
54,156
Operative Builders (0.34%)
D.R. Horton, Inc. 1,800 29,925
Paper & Paper Products (0.25%)
School Specialty, Inc. 1,400(a) 22,487
Paperboard Containers & Boxes (0.50%)
Ivex Packaging Corp. 2,000(a) 44,000
Paperboard Mills (1.21%)
Caraustar Industries, Inc. 3,500 86,406
Gaylord Container Corp., Inc. 2,600(a) 20,638
107,044
Personal Credit Institutions (0.31%)
CompuCredit Corp. 700(a) 13,300
Creditrust Corp. 500(a) 13,875
27,175
Personnel Supply Services (0.38%)
Computer Horizons Corp. 700(a) $ 9,669
On Assignment, Inc. 700(a) 18,288
Romac International, Inc. 600(a) 5,325
33,282
Petroleum & Petroleum Products (0.39%)
Plains Resources, Inc. 1,800(a) 34,200
Petroleum Refining (0.31%)
Tesoro Petroleum Corp. 1,700(a) 27,094
Plastic Materials & Synthetics (2.81%)
Geon Co. 4,500 145,125
Wellman, Inc. 6,500 103,594
248,719
Plumbing, Heating,
Air-Conditioning (0.06%)
Comfort Systems USA, Inc. 300(a) 5,400
Radio & Television Broadcasting (2.09%)
Allegiance Telecom, Inc. 800(a) 43,900
American States Water Co. 2,600 73,775
Citadel Communications Corp. 900(a) 32,569
Entercom Communications Corp. 700(a) 29,925
Radio One, Inc. 100(a) 4,650
184,819
Real Estate Operators & Lessors (1.81%)
Arden Realty Group, Inc. 4,700 115,738
Mission West Properties, Inc. 1,200 9,900
Realty Information Group, Inc. 800(a) 34,800
160,438
Research & Testing Services (0.20%)
Applied Analytical Industry 300(a) 3,375
Media Metrix, Inc. 100(a) 5,325
Trimeris, Inc. 300(a) 4,350
U.S. Bioscience, Inc. 500(a) 4,875
17,925
Savings Institutions (3.93%)
Bank United Corp. 2,700 108,506
Commercial Federal Corp. 3,500 81,156
Community First Bankshares, Inc. 2,600 62,075
Firstfed Financial Corp. 3,300(a) 63,525
Ocwen Financial Corp. 3,700(a) 32,838
348,100
Sawmills & Planning Mills (1.12%)
Universal Forest Products 4,600 98,900
Search & Navigation Equipment (0.35%)
Orbital Sciences Corp. 1,300(a) 30,713
Security & Commodity Services (0.16%)
Gabelli Asset Management Inc., Class A 900(a) 14,231
Security Brokers & Dealers (0.26%)
DLJDirect 100(a) 2,950
TD Waterhouse Group 400(a) 10,025
Wit Captial Group, Inc. 300(a) 10,200
23,175
Shoe Stores (0.29%)
The Finish Line, Inc., Class A 2,300(a) 25,875
Special Industry Machinery (0.48%)
Lam Research Corp. 600(a) $ 28,012
Milacron, Inc. 800 14,800
42,812
Special Trade Contractors (0.07%)
Service Experts, Inc. 300(a) 6,581
Surety Insurance (0.16%)
FPIC Insurance Group, Inc. 300(a) 14,550
Telephone Communication (1.66%)
American Mobil Satellite 300(a) 4,913
Concentric Network Corp. 1,200(a) 47,700
Covad Communications Group 700(a) 37,318
Digital Island 1,100(a) 19,731
NEXTLINK Communications 500(a) 37,188
146,850
Toys & Sporting Goods (0.17%)
Jakks Pacific, Inc. 500(a) 14,906
Trucking & Courier Services, Except
Air (2.02%)
Allied Holdings, Inc. 4,000(a) 32,500
American Freightways Corp. 2,100(a) 41,081
Forward Air Corp. 600(a) 16,875
Werner Enterprises, Inc. 4,250 88,187
178,643
Trusts (0.41%)
Allied Capital Corp. 1,500 36,000
Variety Stores (0.78%)
ShopKo Stores, Inc. 1,900(a) 68,875
Water Supply (1.19%)
E'Town Corp. 2,300 105,225
Water Transportation of Passengers (0.16%)
American Classic Voyages Co. 600(a) 14,400
Total Portfolio Investment (96.00%) 8,502,473
Cash and receivables, net of liabilities (4.00%) 359,817
Total Net Assets (100.00%) $8,862,290
(a) Non-income producing security - No dividend paid during the past twelve
months.
STOCK INDEX 500 ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (92.21%)
Accounting, Auditing & Bookkeeping (0.07%)
Paychex, Inc. 318 $ 10,136
Advertising (0.20%)
Interpublic Group of Cos., Inc. 124 10,742
Omnicom Group, Inc. 250 20,000
30,742
Air Transportation, Scheduled (0.39%)
AMR Corp. 263(a) $ 17,950
Delta Air Lines, Inc. 126 7,261
FDX Corp. 363(a) 19,693
Southwest Airlines Co. 411 12,792
US Airways Group, Inc. 78(a) 3,398
61,094
Aircraft & Parts (1.23%)
Allied Signal, Inc. 680 42,840
B.F. Goodrich Co. 66 2,805
Boeing Co. 1,245 55,013
General Dynamics Corp. 114 7,809
Northrop Grumman Corp. 61 4,045
Rockwell International Corp. 269 16,342
Textron, Inc. 241 19,837
United Technologies Corp. 588 42,152
190,843
Auto & Home Supply Stores (0.03%)
Autozone, Inc. 134(a) 4,037
Automotive Rentals, No Drivers (0.01%)
Ryder Systems, Inc. 63 1,638
Bakery Products (0.16%)
Sara Lee Corp. 1,114 25,274
Beer, Wine & Distilled Beverages (0.03%)
Brown-Forman Corp. 60 3,911
Beverages (2.34%)
Adolph Coors Co., Class B 32 1,584
Anheuser-Busch Cos., Inc. 584 41,428
Coca-Cola Co. 3,247 202,938
Coca-Cola Enterprises 518 15,928
PepsiCo, Inc. 1,926 74,512
Seagram Co. Ltd. 523 26,346
362,736
Blankbooks & Bookbinding (0.02%)
Deluxe Corp. 71 2,765
Blast Furnace & Basic Steel
Products (0.09%)
Allegheny Teledyne, Inc. 274 6,199
Bethlehem Steel Corp. 116(a) 892
Nucor Corp. 78 3,700
USX-U.S. Steel Group 78 2,106
Worthington Industries, Inc. 82 1,348
14,245
Books (0.11%)
McGraw-Hill Cos., Inc. 275 14,833
Meredith Corp. 46 1,593
16,426
Broadwoven Fabric Mills, Cotton (0.01%)
Fruit of The Loom, Inc. 64(a) 624
Springs Industries, Inc. 15 654
1,278
Business Credit Institutions (0.33%)
Associates First Capital Corp., Class A 888 $ 39,350
Providian Financial Corp. 126 11,781
51,131
Cable & Other Pay TV Services (0.74%)
Comcast Corp., Special Class A 1,569(a) 60,308
MediaOne Group, Inc. 741(a) 55,112
115,420
Cash Grains (0.08%)
Pioneer Hi-Bred International, Inc. 314 12,226
Chemicals & Allied Products (0.26%)
Dow Chemical Co. 297 37,682
Sigma-Aldrich Corp. 90 3,099
40,781
Combination Utility Services (0.32%)
Cinergy Corp. 241 7,712
Constellation Energy Group, Inc. 133 3,940
Entergy Corp. 320 10,000
Northern States Power Co. 235 5,684
Pacificorp 366 6,725
PG&E Corp. 467 15,178
49,239
Commercial Banks (6.45%)
Amsouth Bancorp. 258 5,982
Bank of America Corp. 2,271 166,493
Bank of New York Co., Inc. 928 34,046
Bank One Corp. 1,536 91,488
BankBoston Corp. 365 18,661
BB&T Corp. 379 13,905
Chase Manhattan Corp. 1,033 89,484
Comerica, Inc. 238 14,146
Fifth Third Bancorp 337 22,432
First Union Corp. 1,210 56,870
Firstar Corp. 843 23,604
Fleet Financial Group, Inc. 694 30,796
Huntington Bancshares, Inc. 288 10,080
J.P. Morgan & Co., Inc. 256 35,968
Keycorp 555 17,829
MBNA Corp. 980 30,012
Mellon Bank Corp. 638 23,207
Mercantile Bancorp., Inc. 240 13,710
National City Corp. 398 26,069
Northern Trust Corp. 99 9,603
PNC Financial Corp. 369 21,264
Regions Financial Corp. 297 11,416
Republic New York Corp. 96 6,546
Southtrust Corp. 247 9,479
State Street Corp. 243 20,746
Summit Bancorp. 255 10,662
Suntrust Banks, Inc. 391 27,150
Synovus Financial Corp. 338 6,718
Union Planters Corp. 122 5,452
US Bancorp 889 30,226
Wachovia Corp. 280 23,957
Wells Fargo Co. 2,159 92,297
1,000,298
Commercial Printing (0.03%)
R.R. Donnelley & Sons Co. 120 4,448
Communications Equipment (2.55%)
Andrew Corp. 73(a) $ 1,382
General Instrument Corp. 249(a) 10,583
Harris Corp. 169 6,622
Lucent Technologies, Inc. 3,953 266,611
Network Appliance, Inc. 90(a) 5,029
Nortel Networks Corp. 810 70,318
Scientific-Atlanta, Inc. 67 2,412
Tellabs, Inc. 473(a) 31,957
394,914
Communications Services, NEC (0.12%)
Nextel Communications, Inc. 357(a) 17,917
Computer & Data Processing Services (6.60%)
Adobe Systems, Inc. 153 12,570
America Online, Inc. 1,354(a) 149,617
Autodesk, Inc. 53 1,567
BMC Software, Inc. 311(a) 16,794
Computer Associates International, Inc. 658 36,190
Computer Sciences Corp. 241(a) 16,674
Compuware Corp. 449(a) 14,284
Electronic Data Systems Corp. 602 34,051
First Data Corp. 540 26,426
IMS Health, Inc. 389 12,156
Microsoft Corp. 6,626(a) 597,582
Novell, Inc. 412(a) 10,918
Oracle Systems Corp. 1,887(a) 70,055
Parametric Technology Corp. 338(a) 4,690
Peoplesoft, Inc. 308(a) 5,313
Shared Medical Systems Corp. 23 1,501
Unisys Corp. 332(a) 12,927
1,023,315
Computer & Office Equipment (7.16%)
3COM Corp. 438(a) 11,689
Apple Computer, Inc. 220(a) 10,189
Automatic Data Processing, Inc. 752 33,088
Cabletron Systems, Inc. 253(a) 3,289
Ceridian Corp. 128(a) 4,184
Cisco Systems, Inc. 4,141(a) 267,094
Compaq Computer Corp. 2,227 52,752
Data General Corp. 44(a) 641
Dell Computer Corp. 3,340(a) 123,580
EMC Corp. 1,325(a) 72,875
Gateway, Inc. 239(a) 14,101
Hewlett-Packard Co. 1,239 124,519
International Business Machines Corp. 2,260 292,105
Pitney Bowes, Inc. 343 22,038
Seagate Technology, Inc. 318(a) 8,149
Silicon Graphics 267(a) 4,372
Sun Microsystems, Inc. 940(a) 64,743
1,109,408
Construction & Related Machinery (0.32%)
Baker Hughes, Inc. 399 13,367
Caterpillar, Inc. 438 26,280
Dover Corp. 299 10,465
50,112
Consumer Products (0.94%)
Fortune Brands, Inc. 252 10,427
Nabisco Group Holdings Corp. 396 7,747
Philip Morris Cos., Inc. 2,982 119,839
UST, Inc. 266 7,780
145,793
Copper Ores (0.01%)
Cyprus Amax Minerals Co. 81 $ 1,230
Crude Petroleum & Natural Gas (0.58%)
Anadarko Petroleum Co. 108 3,976
Apache Corp. 87 3,393
Burlington Resources, Inc. 258 11,158
Kerr-Mcgee Corp. 77 3,864
Occidental Petroleum Corp. 422 8,915
Texaco, Inc. 653 40,813
Union Pacific Resources Group, Inc. 324 5,285
USX-Marathon Group, Inc. 375 12,211
89,615
Cutlery, Handtools & Hardware (0.23%)
Danaher Corp. 119 6,917
Illinois Tool Works 324 26,568
Snap-On Incorporated 52 1,882
35,367
Department Stores (0.61%)
Dillard's, Inc., Class A 95 3,337
Federated Department Stores 287(a) 15,193
Harcourt General, Inc. 63 3,248
Kohl's Corp. 240(a) 18,525
May Department Stores 428 17,495
Penney (J.C.) Co. 335 16,268
Sears, Roebuck & Co. 467 20,811
94,877
Drug Stores & Proprietary Stores (0.45%)
CVS Corp. 475 24,284
Longs Drug Stores Corp. 34 1,175
Rite Aid Corp. 331 8,151
Walgreen Co. 1,219 35,808
69,418
Drugs (8.29%)
Abbott Laboratories 1,985 90,317
ALZA Corp. 89(a) 4,528
American Home Products Corp. 1,609 92,518
Amgen, Inc. 622(a) 37,864
Bristol-Myers Squibb Co. 2,611 183,912
Johnson & Johnson 1,762 172,676
Lilly (Eli) & Co. 1,344 96,264
Merck & Co., Inc. 2,918 215,932
Pfizer, Inc. 1,585 173,954
Pharmacia & Upjohn, Inc. 621 35,281
Schering-Plough Corp. 1,928 102,184
Warner-Lambert Co. 1,104 76,590
Watson Pharmaceuticals 85(a) 2,980
1,285,000
Drugs, Proprietaries & Sundries (0.21%)
Cardinal Health, Inc. 343 21,995
McKesson HBOC, Inc. 347 11,147
33,142
Eating & Drinking Places (0.62%)
Darden Restaurants, Inc. 123 2,683
McDonald's Corp. 1,771 73,164
Tricon Global Restaurants, Inc. 320(a) 17,320
Wendy's International 111 3,143
96,310
Electric Lighting & Wiring Equipment (0.07%)
Cooper Industries, Inc. 92 $ 4,784
National Service Industries 36 1,296
Raychem Corp. 68 2,516
Thomas & Betts Corp. 50 2,363
10,959
Electric Services (1.88%)
AES Corp. 261(a) 15,171
Ameren Corp. 122 4,682
American Electric Power Co., Inc. 271 10,179
Carolina Power & Light Co. 234 10,018
Central & Southwest Corp. 289 6,755
CMS Energy Corp 141 5,904
Consolidated Edison, Inc. 308 13,937
Dominion Resources, Inc. 273 11,824
DTE Energy Co. 129 5,160
Duke Energy Corp. 442 24,034
Edison International 431 11,529
Enron Corp. 428 34,989
Firstenergy Corp. 312 9,672
Florida Progress Corp. 120 4,958
FPL Group, Inc. 261 14,257
GPU, Inc. 115 4,852
New Century Energies, Inc. 102 3,959
Niagara Mohawk Holdings, Inc. 267(a) 4,289
Peco Energy Co. 300 12,562
PP&L Resources, Inc. 234 7,195
Public Service Enterprise Group, Inc. 299 12,222
Reliant Energy, Inc. 354(a) 9,779
Sempra Energy 314 7,104
Southern Co. 851 22,552
Texas Utilities Holdings 352 14,520
Unicom Corp. 293 11,299
293,402
Electrical Industrial Apparatus (0.22%)
Emerson Electric Co. 533 33,512
Electronic Components & Accessories (2.44%)
Advanced Micro Devices, Inc. 129(a) 2,330
Intel Corp. 4,376 260,372
LSI Logic Corp. 126(a) 5,812
Micron Technology, Inc. 321(a) 12,940
National Semiconductor Corp. 249(a) 6,303
Solectron Corp. 325(a) 21,673
Texas Instruments 475 68,875
378,305
Electronic Distribution Equipment (3.14%)
General Electric Co. 4,305 486,465
Engines & Turbines (0.04%)
Briggs & Stratton Corp. 20 1,155
Brunswick Corp. 82 2,286
Cummins Engine Co., Inc. 37 2,113
5,554
Fabricated Rubber Products, NEC (0.01%)
Cooper Tire & Rubber Co. 67 1,583
Family Clothing Stores (0.48%)
Gap, Inc. 1,144 $ 57,629
Nordstrom, Inc. 127 4,255
TJX Cos., Inc. 394 13,125
75,009
Farm & Garden Machinery (0.14%)
Case Corp. 65 3,128
Deere & Co. 313 12,403
Tenneco, Inc. 251 5,992
21,523
Fats & Oils (0.07%)
Archer Daniels Midland Co. 723 11,161
Federal & Federally Sponsored Credit (0.98%)
Federal Home Loan Mtg. 929 53,882
Federal National Mortgage Association 1,266 86,563
SLM Holding Corp. 247 11,315
151,760
Finance Services (0.06%)
Cincinnati Financial Corp. 248 9,315
Fire, Marine & Casualty Insurance (2.10%)
Aetna, Inc. 127 11,359
Allstate Corp. 1,003 35,983
American International Group, Inc. 1,600 187,300
Chubb Corp. 245 17,027
Cigna Corp. 284 25,276
Hartford Financial Services Group, Inc. 308 17,960
Loews Corp. 102 8,071
Progressive Corp. 64 9,280
Safeco Corp. 121 5,339
St. Paul Cos., Inc. 310 9,862
327,457
Forest Products (0.12%)
Weyerhaeuser Co. 277 19,044
Funeral Service & Crematories (0.04%)
Service Corp. International 344 6,622
Gas Production & Distribution (0.26%)
Columbia Energy Group 74 4,639
Consolidated Natural Gas Co. 85 5,164
Eastern Enterprises 19 755
Nicor, Inc. 42 1,599
Oneok, Inc. 27 857
Peoples Energy Corp. 31 1,168
Sonat, Inc. 98 3,246
Williams Cos., Inc. 522 22,218
39,646
General Industrial Machinery (0.76%)
Armstrong World Industries, Inc. 35 2,023
Ingersoll-Rand Co. 246 15,898
Nacco Industries, Inc., Class A 6 441
Pall Corp. 111 2,463
Timken Co. 55 1,072
Tyco International Ltd. 998 94,561
116,458
Glass & Glassware, Pressed or Blown (0.19%)
Corning, Inc. 307 21,528
Owens-Illinois, Inc. 238(a) 7,780
29,308
Gold & Silver Ores (0.15%)
Barrick Gold Corp. 505 $ 9,785
Battle Mountain Gold Co. 305(a) 743
Homestake Mining Co. 317 2,595
Newmont Mining Corp. 249 4,949
Placer Dome, Inc. 397 4,690
22,762
Grain Mill Products (0.36%)
General Mills, Inc. 236 18,969
Kellogg Co. 494 16,302
Quaker Oats Co. 121 8,031
Ralston-Ralston Purina Group 401 12,205
55,507
Greeting Cards (0.01%)
American Greetings Corp. 62 1,868
Groceries & Related Materials (0.60%)
Safeway, Inc. 594(a) 29,403
SUPERVALU, Inc. 107 2,749
Sysco Corp. 406 12,104
Unilever NV 698 48,685
92,941
Grocery Stores (0.40%)
Albertson's, Inc. 536 27,655
Great Atlantic & Pacific Tea Company, Inc.34 1,150
Kroger Co. 1,002(a) 27,993
Winn-Dixie Stores, Inc. 133 4,913
61,711
Health & Allied Services, NEC (0.05%)
Healthsouth Corp. 516(a) 7,708
Heavy Construction, Except Highway (0.01%)
Foster Wheeler Corp. 36 509
McDermott International, Inc. 53 1,497
2,006
Highway & Street Construction (0.16%)
Halliburton Co. 536 24,254
Hospitals (0.18%)
Columbia/HCA Healthcare Corp. 788 17,976
Humana, Inc. 249 3,221
Tenet Healthcare Corp. 378(a) 7,017
28,214
Hotels & Motels (0.13%)
Hilton Hotels Corp. 332 4,710
Marriott International, Inc., Class A 317 11,848
Mirage Resorts, Inc. 260(a) 4,355
20,913
Household Appliances (0.07%)
Maytag Corp. 80 5,575
Whirlpool Corp. 67 4,958
10,533
Industrial Inorganic Chemicals (0.46%)
Air Products & Chemicals, Inc. 305 12,276
Eastman Chemical Co. 70 3,623
Great Lakes Chemical Corp. 53 2,441
Monsanto Co. 765 30,170
Nalco Chemical Co. 57 2,957
Praxair, Inc. 240 11,745
Union Carbide Corp. 118 5,753
W.R. Grace & Co. 65(a) 1,194
70,159
Industrial Organic Chemicals (0.03%)
International Flavors & Fragrances, Inc. 95 $ 4,216
Insurance Agents, Brokers & Services (0.19%)
Equifax, Inc. 132 4,711
Marsh & McLennan Cos., Inc. 330 24,915
29,626
Iron Ores (0.00%)
Asarco, Inc. 35 658
Jewlery, Silverware & Plated Wire (0.00%)
Jostens, Inc. 31 653
Knitting Mills (0.00%)
Russell Corp. 32 624
Life Insurance (0.31%)
American General Corp. 325 24,497
Jefferson-Pilot Corp. 95 6,288
Lincoln National Corp. 180 9,416
Transamerica Corp. 112 8,400
48,601
Lumber & Construction Materials (0.01%)
Crane Co. 60 1,886
Lumber & Other Building Materials (0.97%)
Home Depot, Inc. 1,930 124,364
Lowe's Cos., Inc. 453 25,680
150,044
Machinery, Equipment & Supplies (0.03%)
Grainger (W. W.), Inc. 84 4,520
Management & Public Relations (0.08%)
Dun & Bradstreet Corp. 247 8,753
EG&G, Inc. 39 1,389
Fluor Corp. 67 2,714
12,856
Measuring & Controlling Devices (0.32%)
Allergan, Inc. 58 6,438
Eaton Corp. 63 5,796
Honeywell, Inc. 113 13,094
Johnson Controls, Inc. 75 5,198
KLA-Tencor Corp. 78(a) 5,060
Mallinckrodt, Inc. 63 2,292
Millipore Corp. 39 1,582
PE Corp.-PE Biosystems Group 44 5,049
Tektronix, Inc. 41 1,238
Thermo Electron Corp. 241(a) 4,835
50,582
Meat Products (0.10%)
ConAgra, Inc. 598 15,922
Medical Instruments & Supplies (0.88%)
Baxter International, Inc. 355 21,522
Becton, Dickinson & Co. 323 9,690
Biomet, Inc. 100 3,975
Boston Scientific Corp. 479(a) 21,046
C.R. Bard, Inc. 48 2,295
Guidant Corp. 369(a) 18,980
Medtronic, Inc. 713 55,525
St. Jude Medical, Inc. 75(a) 2,672
135,705
Medical Services & Health Insurance (0.53%)
AFLAC, Inc. 321 $ 15,368
AON Corp. 327 13,489
Conseco, Inc. 391 11,901
Provident Cos., Inc. 120 4,800
Torchmark Corp. 125 4,266
United Healthcare Corp. 266 16,658
Unum Corp. 123 6,734
Wellpoint Health Networks, Inc. 99(a) 8,402
81,618
Men's & Boys' Furnishings (0.03%)
V.F. Corp. 107 4,574
Metal Cans & Shipping Containers (0.03%)
Ball Corp. 27 1,141
Crown Cork & Seal Co., Inc. 110 3,135
4,276
Metal Mining Services (0.03%)
Freeport-McMoRan Cooper &
Gold, Inc., Class B 247(a) 4,431
Metalworking Machinery (0.05%)
Black & Decker Corp. 78 4,923
Stanley Works 79 2,543
7,466
Military Contractors (0.11%)
Lockheed Martin Corp. 478 17,805
Millwork, Plywood &
Structural Members (0.08%)
Georgia-Pacific Group 255 12,081
Miscellaneous Amusement,
Recreation Service (0.02%)
Harrahs Entertainment, Inc. 113(a) 2,486
Miscellaneous Converted Paper (0.33%)
Avery Dennison Corp. 104 6,279
Bemis Company, Inc. 46 1,829
Minnesota Mining & Mfg. Co. 490 42,599
50,707
Miscellaneous Fabricated Metal
Products (0.03%)
Parker-Hannifin Corp. 97 4,438
Miscellaneous Food & Kindred
Products (0.28%)
Bestfoods 355 17,573
Campbell Soup Co. 542 25,135
42,708
Miscellaneous Furniture & Fixtures (0.11%)
Newell Rubbermaid, Inc. 351 16,321
Miscellaneous General Merchandise
Stores (0.02%)
Consolidated Stores Corp. 98(a) $ 2,646
Miscellaneous Investing (0.12%)
Cendant Corp. 939(a) 19,250
Miscellaneous Non-Metallic
Mineral Products (0.01%)
Owens Corning 48 1,650
Miscellaneous Personal Services (0.03%)
H&R Block, Inc. 87 4,350
Miscellaneous Plastics
Products, NEC (0.04%)
Sealed Air Corp. 74(a) 4,801
Tupperware Corp. 51 1,300
6,101
Miscellaneous Shopping Goods
Stores (0.22%)
Office Depot, Inc. 475(a) 10,479
Staples, Inc. 563(a) 17,418
Toys `R' Us, Inc. 324(a) 6,703
34,600
Miscellaneous Transportation
Equipment (0.02%)
Fleetwood Enterprises, Inc. 30 793
FMC Corp. 29(a) 1,981
2,774
Mortgage Bankers & Brokers (0.03%)
Countrywide Credit Industries, Inc. 101 4,318
Motion Picture Distribution &
Services (0.01%)
King World Productions, Inc. 63(a) 2,193
Motion Picture Production &
Services (2.01%)
Time Warner, Inc. 2,606 191,541
Viacom, Inc., Class B 849 37,356
Walt Disney Co. 2,696 83,070
311,967
Motor Vehicles & Equipment (1.13%)
Dana Corp. 248 11,423
Delphi Automotive Systems Corp. 689 12,789
Ford Motor Co. 1,478 83,415
General Motors Corp. 799 52,734
ITT Industries, Inc. 93 3,546
Navistar International Corp. 58(a) 2,900
Paccar, Inc. 69 3,683
TRW, Inc. 107 5,872
176,362
Motor Vehicles, Parts & Supplies (0.07%)
Genuine Parts Co. 260 9,100
Pep Boys - Manny, Moe & Jack 47 1,016
10,116
Newspapers (0.36%)
Dow Jones & Co., Inc. 83 $ 4,404
Gannett Co. 351 25,053
Knight-Ridder, Inc. 69 3,791
New York Times Co., Class A 263 9,682
Times Mirror Co., Class A 70 4,147
Tribune Co. 106 9,235
56,312
Non-Ferrous Rolling & Drawing (0.02%)
Reynolds Metals Co. 57 3,363
Nursing & Personal Care Facilities (0.02%)
HCR Manor Care, Inc. 99(a) 2,395
Oil & Gas Field Services (0.29%)
Helmerich & Payne, Inc. 44 1,048
Rowan Cos., Inc. 74(a) 1,364
Schlumberger Ltd. 666 42,416
44,828
Operative Builders (0.02%)
Centex Corp. 53 1,991
Pulte Corp. 38 876
2,867
Opthalmic Goods (0.02%)
Bausch & Lomb, Inc. 50 3,825
Paints & Allied Products (0.05%)
Sherwin-Williams Co 253 7,021
Paper Mills (0.37%)
Fort James Corp. 296 11,211
Kimberly Clark Corp. 661 37,677
Potlatch Corp. 25 1,099
Westvaco Corp. 89 2,581
Willamette Industries, Inc. 99 4,560
57,128
Paperboard Containers & Boxes (0.02%)
Temple-Inland, Inc. 49 3,344
Personal Credit Institutions (0.74%)
American Express Co. 552 71,829
Capital One Financial Corp. 273 15,203
Household International Corp. 590 27,951
114,983
Petroleum Refining (4.31%)
Amerada Hess Corp. 80 4,760
Ashland, Inc. 66 2,648
Atlantic Richfield Co. 398 33,258
Chevron Corp. 797 75,864
Coastal Corp. 289 11,560
Exxon Corp. 3,189 245,952
Mobil Corp. 953 94,347
Phillips Petroleum Co. 328 16,502
Royal Dutch Petroleum Co. ADR 2,815 169,604
Sunoco, Inc. 83 2,506
Unocal Corp. 316 12,522
669,523
Photographic Equipment & Supplies (0.47%)
Eastman Kodak Co. 395 $ 26,761
Polaroid Corp. 39 1,078
Xerox Corp. 801 47,309
75,148
Plastic Materials & Synthetics (0.81%)
Du Pont (E.I.) De Nemours 1,376 93,998
Hercules, Inc. 90 3,538
PPG Industries, Inc. 257 15,179
Rohm & Haas Co. 288 12,348
125,063
Plumbing & Heating, Except Electric (0.08%)
Masco Corp. 414 11,954
Preserved Fruits & Vegtables (0.14%)
Heinz (H.J.) Co. 442 22,155
Primary Non-Ferrous Metals (0.31%)
Alcan Aluminum Ltd. 303 9,677
Alcoa, Inc. 448 27,720
Engelhard Corp. 128 2,896
Inco Ltd. 248(a) 4,464
Phelps Dodge Corp. 52 3,221
47,978
Professional & Commercial Equipment (0.01%)
Ikon Office Solutions, Inc. 132 1,980
Public Warehousing & Storage (0.15%)
Costco Cos., Inc. 294(a) 23,538
Pulp Mills (0.23%)
Boise Cascade Corp. 50 2,150
Champion International Corp. 85 4,070
International Paper Co. 500 25,250
Mead Corp. 91 3,799
35,269
Radio & Television Broadcasting (0.42%)
CBS Corp. 861 37,400
Clear Channel Communications 395(a) 27,230
64,630
Radio, Television & Computer Stores (0.23%)
Best Buy, Inc. 268(a) 18,090
Circuit City Stores - Circuit City Group 90 8,370
Tandy Corp. 176 8,602
35,062
Railroads (0.45%)
Burlington Northern Sante Fe Corp. 573 17,763
CSX Corp. 293 13,276
Kansas City Southern Industries, Inc. 98 6,254
Norfolk Southern Corp. 463 13,948
Union Pacific Corp. 321 18,718
69,959
Residential Building Construction (0.01%)
Kaufman & Broad Home Corp. 42 1,045
Rubber & Plastics Footwear (0.15%)
Nike, Inc. 352 22,286
Reebok International Ltd. 50(a) 931
23,217
Sanitary Services (0.32%)
Browning-Ferris Industries, Inc. 240 $ 10,320
Waste Management, Inc. 731(a) 39,291
49,611
Savings Institutions (1.56%)
Citigroup, Inc. 4,445 211,137
Golden West Financial Corp. 51 4,998
Washington Mutual, Inc. 724 25,612
241,747
Sawmills & Planning Mills (0.01%)
Louisiana Pacific Corp. 97 2,304
School Buses (0.02%)
Laidlaw, Inc. 403 2,972
Search & Navigation Equipment (0.19%)
Raytheon Co., Class B 411 28,924
Security & Commodity Services (0.09%)
Franklin Resources, Inc. 326 13,244
Security Brokers & Dealers (1.16%)
Bear Stearns Cos., Inc. 100 4,675
Charles Schwab Corp. 489 53,729
Lehman Brothers Holdings, Inc. 102 6,349
Merrill Lynch & Co., Inc. 433 34,613
Morgan Stanley Dean Witter & Co 705 72,263
Paine Webber Group, Inc. 174 8,134
179,763
Soap, Cleaners & Toilet Goods (1.82%)
Alberto-Culver Co., Class B 51 1,358
Avon Products, Inc. 334 18,537
Clorox Co. 105 11,215
Colgate-Palmolive Co. 362 35,748
Ecolab, Inc. 115 5,017
Gillette Co. 1,355 55,555
Procter & Gamble Co. 1,737 155,027
282,457
Special Industry Machinery (0.22%)
Applied Materials, Inc. 450(a) 33,244
Milacron, Inc. 34 629
33,873
Sugar & Confectionery Products (0.11%)
Hershey Foods Corp. 128 7,600
Wrigley (Wm.) Jr. Co. 104 9,360
16,960
Surety Insurance (0.07%)
MBIA, Inc. 89 5,763
MGIC Investment Corp. 98 4,765
10,528
Telephone Communication (8.81%)
Alltel Corp. 345 $ 24,668
Ameritech Corp. 1,343 98,710
AT&T Corp. 4,133 230,673
Bell Atlantic Corp. 2,032 132,842
BellSouth Corp. 2,387 111,891
Centurytel, Inc. 123 4,889
Frontier Corp. 253 14,927
GTE Corp. 1,279 96,884
MCI Worldcom, Inc. 2,408(a) 207,690
Motorola, Inc. 733 69,452
SBC Communications, Inc. 4,327 250,966
Sprint Corp. 1,091 57,618
Sprint PCS Group 536(a) 30,619
U.S. West, Inc. 615 36,131
1,367,960
Tires & Inner Tubes (0.09%)
Goodyear Tire & Rubber Co. 238 13,997
Toys & Sporting Goods (0.14%)
Hasbro, Inc. 274 7,655
Mattel, Inc. 508 13,430
21,085
Variety Stores (2.16%)
Dayton-Hudson Corp. 538 34,970
Dollar General Corp. 297 8,613
Kmart Corp. 602(a) 9,895
Wal-Mart Stores, Inc. 5,839 281,732
335,210
Water Transportation of Passengers (0.23%)
Carnival Corp. 748 36,278
Women's & Misses' Outerwear (0.01%)
Liz Claiborne, Inc. 57 2,081
Women's Clothing Stores (0.09%)
Limited, Inc. 302 13,703
Total Common Stocks 14,297,162
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
Commercial Paper (5.97%)
Federal & Federally Sponsored Credit (5.97%)
Investment In Joint Trade Account,
Federal Home Loan Mortgage Corp.;
4.60%; 7/1/1999 $925,169 $ 925,169
Total Portfolio Investments (98.18%) 15,222,331
Cash and receivables, net of liabilities (1.82%) 282,107
Total Net Assets (100.00%) $15,504,438
(a) Non-income producing security - No dividend paid during the past twelve
months.
UTILITIES ACCOUNT
- --------------------------------------------------------------------------------
Shares
Held Value
- --------------------------------------------------------------------------------
Common Stocks (95.35%)
Combination Utility Services (14.32%)
Citizens Utilities 65,796 $ 765,356
Constellation Energy Group, Inc. 21,100 625,087
Montana Power Co. 5,600 394,800
Nisource, Inc. 21,700 560,131
Pacificorp 23,100 424,463
Scana Corp. 13,600 317,900
Utilicorp United, Inc. 24,300 590,794
3,678,531
Electric Services (43.53%)
Allegheny Energy 13,300 426,431
Avista Corp. 20,800 338,000
Carolina Power & Light Co. 5,500 235,469
CMS Energy Corp. 13,300 556,937
Dominion Resources, Inc. 10,800 467,775
DQE, Inc. 13,000 521,625
Duke Energy Corp. 9,100 494,812
Edison International 17,800 476,150
Enron Corp. 8,400 686,700
FirstEnergy Corp. 19,500 604,500
FPL Group, Inc. 8,300 453,388
GPU, Inc. 15,300 645,469
Ipalco Enterprises, Inc. 15,800 334,763
MidAmerican Energy Holdings Co. 18,200 630,175
Niagara Mohawk Holdings, Inc. 24,500(a) 393,531
Peco Energy Co. 12,500 523,438
Pinnacle West Capital Corp. 18,600 748,650
Potomac Electric Power Co. 17,100 503,381
Reliant Energy, Inc. 15,500 428,187
Southern Co. 16,100 426,650
Teco Energy, Inc. 22,800 518,700
Texas Utilities Holdings 10,800 445,500
TNP Enterprises, Inc. 8,800 319,000
11,179,231
Gas Production & Distribution (1.68%)
AGL Resources, Inc. 5,000 92,187
New Jersey Resources Corp. 4,900 183,444
Peoples Energy Corp. 4,100 154,519
430,150
Telephone Communication (35.82%)
Ameritech Corp. 14,800 1,087,800
AT&T Corp. 18,100 1,010,206
Bell Atlantic Corp. 17,600 1,150,600
BellSouth Corp. 20,200 946,875
GTE Corp. 13,500 1,022,625
MCI Worldcom, Inc. 10,163(a) 876,559
RCN Corp. 10,500(a) 437,062
Sprint Corp. 19,000 1,003,437
Sprint PCS Group 3,500(a) 199,938
Teligent, Inc. 6,300(a) 376,819
U.S. West, Inc. 18,500 1,086,875
9,198,796
Total Common Stocks 24,486,708
Commercial Paper (4.36%)
Federal & Federally Sponsored
Credit (4.36%)
Investment In Joint Trade Account,
Federal Home Loan Mortgage Corp.;
4.6%; 7/1/1999 $1,118,812 $1,118,813
Total Portfolio Investments (99.71%) 25,605,521
Cash and receivables, net of liabilities (0.29%) 75,604
Total Net Assets (100.00%) $25,681,125
(a) Non-income producing security - No dividend paid during the past twelve
months.
FINANCIAL HIGHLIGHTS
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH ACCOUNT(a) 1999* 1998 1997 1996 1995 1994(b)
- ------------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $18.33 $16.30 $14.52 $12.94 $10.11 $9.92
Income from Investment Operations:
Net Investment Income (Operating Loss).............. (.01) .04 .04 .11 .13 .05
Net Realized and Unrealized Gain on Investments..... 2.85 2.99 4.26 3.38 4.31 .24
------ ------ ------ ------ ------ ------
Total from Investment Operations 2.84 3.03 4.30 3.49 4.44 .29
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.04) (.04) (.11) (.13) (.05)
Distributions from Capital Gains.................... (.07) (.96) (2.48) (1.80) (1.48) (.05)
------ ------ ------ ------ ------ ------
Total Dividends and Distributions (.07) (1.00) (2.52) (1.91) (1.61) (.10)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $21.10 $18.33 $16.30 $14.52 $12.94 $10.11
====== ====== ====== ====== ====== ======
Total Return........................................... 15.53%(c) 18.95% 30.86% 28.05% 44.19% 2.59%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $292,130 $224,058 $149,182 $90,106 $33,643 $13,770
Ratio of Expenses to Average Net Assets............. .81%(d) .78% .82% .85% .90% 1.03%(d)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ (.08)%(d) .22% .29% 1.05% 1.34% 1.06%(d)
Portfolio Turnover Rate............................. 116.0%(d) 155.6% 172.6% 166.9% 172.9% 105.6%(d)
</TABLE>
<TABLE>
<CAPTION>
ASSET ALLOCATION ACCOUNT(a) 1999* 1998 1997 1996 1995 1994(b)
- ------------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $12.30 $11.94 $11.48 $11.11 $9.79 $9.98
Income from Investment Operations:
Net Investment Income............................... .15 .31 .30 .36 .40 .23
Net Realized and Unrealized Gain (Loss) on Investments .88 .76 1.72 1.06 1.62 (.18)
------ ------ ------ ------ ------ ------
Total from Investment Operations 1.03 1.07 2.02 1.42 2.02 .05
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.31) (.30) (.36) (.40) (.23)
Distributions from Capital Gains.................... (.06) (.40) (1.26) (.69) (.30) --
Excess Distributions from Capital Gains(e).......... -- -- -- -- -- (.01)
------ ------ ------ ------ ------ ------
Total Dividends and Distributions (.06) (.71) (1.56) (1.05) (.70) (.24)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $13.27 $12.30 $11.94 $11.48 $11.11 $9.79
====== ====== ====== ====== ====== ======
Total Return........................................... 8.41%(c) 9.18% 18.19% 12.92% 20.66% .52%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $88,037 $84,089 $76,804 $61,631 $41,074 $28,041
Ratio of Expenses to Average Net Assets............. .86%(d) .89% .89% .87% .89% .95%(d)
Ratio of Net Investment Income to Average Net Assets 2.33%(d) 2.51% 2.55% 3.45% 4.07% 4.27%(d)
Portfolio Turnover Rate............................. 107.0%(d) 162.7% 131.6% 108.2% 47.1% 60.7%(d)
</TABLE>
<TABLE>
<CAPTION>
BALANCED ACCOUNT(a) 1999* 1998 1997 1996 1995 1994
- ---------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $16.25 $15.51 $14.44 $13.97 $11.95 $12.77
Income from Investment Operations:
Net Investment Income............................... .26 .49 .46 .40 .45 .37
Net Realized and Unrealized Gain (Loss) on Investments .70 1.33 2.11 1.41 2.44 (.64)
------ ------ ------ ------ ------ ------
Total from Investment Operations .96 1.82 2.57 1.81 2.89 (.27)
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.01) (.49) (.45) (.40) (.45) (.37)
Distributions from Capital Gains.................... (.14) (.59) (1.05) (.94) (.42) (.18)
------ ------ ------ ------ ------ ------
Total Dividends and Distributions (.15) (1.08) (1.50) (1.34) (.87) (.55)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $17.06 $16.25 $15.51 $14.44 $13.97 $11.95
====== ====== ====== ====== ====== ======
Total Return........................................... 5.96%(c) 11.91% 17.93% 13.13% 24.58% (2.09)%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $224,935 $198,603 $133,827 $93,158 $45,403 $25,043
Ratio of Expenses to Average Net Assets............. .57%(d) .59% .61% .63% .66% .69%
Ratio of Net Investment Income to Average Net Assets 3.29%(d) 3.37% 3.26% 3.45% 4.12% 3.42%
Portfolio Turnover Rate............................. 21.6%(d) 24.2% 69.7% 22.6% 25.7% 31.5%
<FN>
*Six Months Ended June 30, 1999
</FN>
</TABLE>
See accompanying notes.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
BLUE CHIP ACCOUNT(f) 1999*
- ----------------- ----
Net Asset Value, Beginning of Period................... $10.15
Income from Investment Operations:
Net Investment Income............................... .03
Net Realized and Unrealized Gain on Investments..... .22
------
Total from Investment Operations .25
------
Net Asset Value, End of Period......................... $10.40
======
Total Return........................................... 2.46%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $5,286
Ratio of Expenses to Average Net Assets............. .87%(d)
Ratio of Net Investment Income to Average Net Assets 1.53%(d)
Portfolio Turnover Rate............................. 7.4%(d)
<TABLE>
<CAPTION>
BOND ACCOUNT(a) 1999* 1998 1997 1996 1995 1994
- ------------ ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $12.02 $11.78 $11.33 $11.73 $10.12 $11.16
Income from Investment Operations:
Net Investment Income............................... .37 .66 .76 .68 .62 .72
Net Realized and Unrealized Gain (Loss) on Investments (.67) .25 .44 (.40) 1.62 (1.04)
------ ------ ------ ------ ------ ------
Total from Investment Operations (.30) .91 1.20 .28 2.24 (.32)
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.01) (.66) (.75) (.68) (.63) (.72)
Excess Distributions from Capital Gains(e).......... -- (.01) -- -- -- --
------ ------ ------ ------ ------ ------
Total Dividends and Distributions (.01) (.67) (.75) (.68) (.63) (.72)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $11.71 $12.02 $11.78 $11.33 $11.73 $10.12
====== ====== ====== ====== ====== ======
Total Return........................................... (2.48)%(c) 7.69% 10.60% 2.36% 22.17% (2.90)%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $127,044 $121,973 $81,921 $63,387 $35,878 $17,108
Ratio of Expenses to Average Net Assets............. .50%(d) .51% .52% .53% .56% .58%
Ratio of Net Investment Income to Average Net Assets 6.51%(d) 6.41% 6.85% 7.00% 7.28% 7.86%
Portfolio Turnover Rate............................. 51.4%(d) 26.7% 7.3% 1.7% 5.9% 18.2%
</TABLE>
<TABLE>
<CAPTION>
CAPITAL VALUE ACCOUNT(a) 1999* 1998 1997 1996 1995 1994
- ------------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $37.19 $34.61 $29.84 $27.80 $23.44 $24.61
Income from Investment Operations:
Net Investment Income............................... .36 .71 .68 .57 .60 .62
Net Realized and Unrealized Gain (Loss) on Investments 2.20 3.94 7.52 5.82 6.69 (.49)
------ ------ ------ ------ ------ ------
Total from Investment Operations 2.56 4.65 8.20 6.39 7.29 .13
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.01) (.71) (.67) (.58) (.60) (.61)
Distributions from Capital Gains.................... (.45) (1.36) (2.76) (3.77) (2.33) (.69)
------ ------ ------ ------ ------ ------
Total Dividends and Distributions (.46) (2.07) (3.43) (4.35) (2.93) (1.30)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $39.29 $37.19 $34.61 $29.84 $27.80 $23.44
====== ====== ====== ====== ====== ======
Total Return........................................... 7.00%(c) 13.58% 28.53% 23.50% 31.91% .49%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $430,349 $385,724 $285,231 $205,019 $135,640 $120,572
Ratio of Expenses to Average Net Assets............. .42%(d) .44% .47% .49% .51% .51%
Ratio of Net Investment Income to Average Net Assets 1.98%(d) 2.07% 2.13% 2.06% 2.25% 2.36%
Portfolio Turnover Rate............................. 33.4%(d) 22.0% 23.4% 48.5% 49.2% 44.5%
<FN>
*Periods Ended June 30, 1999
</FN>
</TABLE>
FINANCIAL HIGHLIGHTS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES ACCOUNT(a) 1999* 1998 1997 1996 1995 1994
- ----------------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $11.01 $10.72 $10.31 $10.55 $9.38 $10.61
Income from Investment Operations:
Net Investment Income............................... .33 .60 .66 .59 .60 .76
Net Realized and Unrealized Gain (Loss)
on Investments.................................... (.46) .28 .41 (.24) 1.18 (1.24)
------ ------ ------ ------ ------ ------
Total from Investment Operations (.13) .88 1.07 .35 1.78 (.48)
Less Dividends from Net Investment Income.............. (.01) (.59) (.66) (.59) (.61) (.75)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $10.87 $11.01 $10.72 $10.31 $10.55 $9.38
====== ====== ====== ====== ====== ======
Total Return........................................... (1.16)%(c) 8.27% 10.39% 3.35% 19.07% (4.53)%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $143,303 $141,317 $94,322 $85,100 $50,079 $36,121
Ratio of Expenses to Average Net Assets............. .50%(d) .50% .52% .52% .55% .56%
Ratio of Net Investment Income to Average Net Assets 6.11%(d) 6.15% 6.37% 6.46% 6.73% 7.05%
Portfolio Turnover Rate............................. 13.8%(d) 11.0% 9.0% 8.4% 9.8% 23.2%
</TABLE>
<TABLE>
<CAPTION>
GROWTH ACCOUNT(a) 1999* 1998 1997 1996 1995 1994(g)
- -------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $20.46 $17.21 $13.79 $12.43 $10.10 $9.60
Income from Investment Operations:
Net Investment Income............................... .08 .21 .18 .16 .17 .07
Net Realized and Unrealized Gain on Investments..... 1.97 3.45 3.53 1.39 2.42 .51
------ ------ ------ ------ ------ ------
Total from Investment Operations 2.05 3.66 3.71 1.55 2.59 .58
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.21) (.18) (.16) (.17) (.08)
Distributions from Capital Gains.................... (.10) (.20) (.10) (.03) (.09) --
Excess Distributions from Capital Gains(e).......... -- -- (.01) -- -- --
------ ------ ------ ------ ------ ------
Total Dividends and Distributions (.10) (.41) (.29) (.19) (.26) (.08)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $22.41 $20.46 $17.21 $13.79 $12.43 $10.10
====== ====== ====== ====== ====== ======
Total Return........................................... 10.08%(c) 21.36% 26.96% 12.51% 25.62% 5.42%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $322,632 $259,828 $168,160 $99,612 $42,708 $13,086
Ratio of Expenses to Average Net Assets............. .45%(d) .48% .50% .52% .58% .75%(d)
Ratio of Net Investment Income to Average Net Assets .78%(d) 1.25% 1.34% 1.61% 2.08% 2.39%(d)
Portfolio Turnover Rate............................. 17.1%(d) 9.0% 15.4% 2.0% 6.9% 0.9%(d)
</TABLE>
<TABLE>
<CAPTION>
HIGH YIELD ACCOUNT(a) 1999* 1998 1997 1996 1995 1994
- ----------------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $8.06 $8.90 $8.72 $8.39 $7.91 $8.62
Income from Investment Operations:
Net Investment Income............................... .35 .80 .76 .80 .76 .77
Net Realized and Unrealized Gain (Loss) on Investments (.32) (.85) .18 .30 .51 (.72)
------ ------ ------ ------ ------ ------
Total from Investment Operations .03 (.05) .94 1.10 1.27 .05
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.79) (.76) (.77) (.77) (.76)
Excess Distributions from Net Investment Income(e).. -- -- -- -- (.02) --
------ ------ ------ ------ ------ ------
Total Dividends and Distributions -- (.79) (.76) (.77) (.79) (.76)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $8.09 $8.06 $8.90 $8.72 $8.39 $7.91
====== ====== ====== ====== ====== ======
Total Return........................................... .37%(c) (.56)% 10.75% 13.13% 16.08% .62%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $13,923 $14,043 $15,837 $13,740 $11,830 $9,697
Ratio of Expenses to Average Net Assets............. .67%(d) .68% .68% .70% .73% .73%
Ratio of Net Investment Income to Average Net Assets 8.64%(d) 8.68% 8.50% 9.21% 9.09% 9.02%
Portfolio Turnover Rate............................. 97.5%(d) 87.8% 32.0% 32.0% 35.1% 30.6%
<FN>
*Six Months Ended June 30, 1999
</FN>
</TABLE>
See accompanying notes.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
INTERNATIONAL ACCOUNT(a) 1999* 1998 1997 1996 1995 1994(g)
- --------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $14.51 $13.90 $13.02 $10.72 $9.56 $9.94
Income from Investment Operations:
Net Investment Income............................... .21 .26 .23 .22 .19 .03
Net Realized and Unrealized Gain (Loss)
on Investments.................................... .50 1.11 1.35 2.46 1.16 (.33)
------ ------ ------ ------ ------ ------
Total from Investment Operations .71 1.37 1.58 2.68 1.35 (.30)
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.25) (.23) (.22) (.18) (.05)
Excess Distributions from Net Investment Income(e).. -- -- -- -- -- (.02)
Distributions from Capital Gains.................... (.20) (.51) (.47) (.16) (.01) (.01)
------ ------ ------ ------ ------ ------
Total Dividends and Distributions (.20) (.76) (.70) (.38) (.19) (.08)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $15.02 $14.51 $13.90 $13.02 $10.72 $9.56
====== ====== ====== ====== ====== ======
Total Return........................................... 4.82%(c) 9.98% 12.24% 25.09% 14.17% (3.37)%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $164,257 $153,588 $125,289 $71,682 $30,566 $13,746
Ratio of Expenses to Average Net Assets............. .77%(d) .77% .87% .90% .95% 1.24%(d)
Ratio of Net Investment Income to Average Net Assets 2.93%(d) 1.80% 1.92% 2.28% 2.26% 1.31%(d)
Portfolio Turnover Rate............................. 68.5%(d) 33.9% 22.7% 12.5% 15.6% 14.4%(d)
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL SMALLCAP ACCOUNT 1999* 1998(h)
- ------------------------------ ---- ----
<S> <C> <C>
Net Asset Value, Beginning of Period................... $9.00 $9.97
Income from Investment Operations:
Net Investment Income............................... .03 .01
Net Realized and Unrealized Gain (Loss)
on Investments.................................... 1.68 (.95)
------ -----
Total from Investment Operations 1.71 (.94)
Less Dividends from Net Investment Income.............. -- (.03)
------ -----
Net Asset Value, End of Period......................... $10.71 $9.00
====== =====
Total Return........................................... 19.00%(c) (10.37)%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $18,216 $13,075
Ratio of Expenses to Average Net Assets............. 1.05%(d) 1.34%(d)
Ratio of Net Investment Income to Average Net Assets .67%(d) .24%(d)
Portfolio Turnover Rate............................. 191.8%(d) 60.3%(d)
</TABLE>
LARGECAP GROWTH ACCOUNT(f) 1999*
- ----------------------- ----
Net Asset Value, Beginning of Period................... $9.93
Income from Investment Operations:
Net Investment Income(i)............................ --
Net Realized and Unrealized Gain (Loss)
on Investments.................................... 0.62
------
Total from Investment Operations 0.62
Less Dividends from Net Investment Income.............. --
------
Net Asset Value, End of Period......................... $10.55
======
Total Return........................................... 6.24%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $5,307
Ratio of Expenses to Average Net Assets............. 1.20%(d)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ (.08)%(d)
Portfolio Turnover Rate............................. 7.7%(d)
*Periods Ended June 30, 1999
FINANCIAL HIGHLIGHTS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
MICROCAP ACCOUNT 1999* 1998(h)
- ---------------- ---- ----
<S> <C> <C>
Net Asset Value, Beginning of Period................... $8.17 $10.04
Income from Investment Operations:
Net Investment Income(i)............................ .01 .03
Net Realized and Unrealized Gain (Loss) on Investments 1.05 (1.86)
------ -----
Total from Investment Operations 1.06 (1.83)
Less Dividends from Net Investment Income.............. -- (.04)
------ -----
Net Asset Value, End of Period......................... $9.23 $8.17
====== =====
Total Return........................................... 12.85%(c) (18.42)%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $6,633 $5,384
Ratio of Expenses to Average Net Assets............. 1.05%(d) 1.38%(d)
Ratio of Net Investment Income to Average Net Assets 0.24%(d) 0.57%(d)
Portfolio Turnover Rate............................. 66.1%(d) 55.3%(d)
</TABLE>
<TABLE>
<CAPTION>
MIDCAP ACCOUNT(a) 1999* 1998 1997 1996 1995 1994
- -------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $34.37 $35.47 $29.74 $25.33 $19.97 $20.79
Income from Investment Operations:
Net Investment Income............................... .07 .22 .24 .22 .22 .14
Net Realized and Unrealized Gain on Investments..... 1.60 .94 6.48 5.07 5.57 .03
------ ------ ------ ------ ------ ------
Total from Investment Operations 1.67 1.16 6.72 5.29 5.79 .17
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.22) (.23) (.22) (.22) (.14)
Distributions from Capital Gains.................... (.73) (2.04) (.76) (.66) (.21) (.85)
------ ------ ------ ------ ------ ------
Total Dividends and Distributions (.73) (2.26) (.99) (.88) (.43) (.99)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $35.31 $34.37 $35.47 $29.74 $25.33 $19.97
====== ====== ====== ====== ====== ======
Total Return........................................... 5.02%(c) 3.69% 22.75% 21.11% 29.01% .78%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $263,185 $259,470 $224,630 $137,161 $58,520 $23,912
Ratio of Expenses to Average Net Assets............. .61%(d) .62% .64% .66% .70% .74%
Ratio of Net Investment Income to Average Net Assets .42%(d) .63% .79% 1.07% 1.23% 1.15%
Portfolio Turnover Rate............................. 38.0%(d) 26.9% 7.8% 8.8% 13.1% 12.0%
</TABLE>
<TABLE>
<CAPTION>
MIDCAP GROWTH ACCOUNT 1999* 1998(h)
- --------------------- ---- ----
<S> <C> <C>
Net Asset Value, Beginning of Period................... $9.65 $9.94
Income from Investment Operations:
Net Investment Income (Operating Loss)(i)........... .01 (.01)
Net Realized and Unrealized Gain (Loss)
on Investments.................................... .37 (.28)
------ -----
Total from Investment Operations .38 (.29)
------ -----
Net Asset Value, End of Period......................... $10.03 $9.65
====== =====
Total Return........................................... 3.83%(c) (3.40%)(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $10,960 $8,534
Ratio of Expenses to Average Net Assets............. .95%(d) 1.27%(d)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ .24%(d) (.14)%(d)
Portfolio Turnover Rate............................. 74.0%(d) 91.9%(d)
<FN>
*Six Months Ended June 30, 1999
</FN>
</TABLE>
See accompanying notes.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
MIDCAP VALUE ACCOUNT(f) 1999*
- -------------------- ----
Net Asset Value, Beginning of Period................... $10.09
Income from Investment Operations:
Net Investment Income(i)............................ .01
Net Realized and Unrealized Gain on Investments..... .44
------
Total from Investment Operations .45
------
Net Asset Value, End of Period......................... $10.54
======
Total Return........................................... 4.46(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $5,297
Ratio of Expenses to Average Net Assets............. 1.18%(d)
Ratio of Net Investment Income to Average Net Assets .71%(d)
Portfolio Turnover Rate............................. 70.5%(d)
<TABLE>
<CAPTION>
MONEY MARKET ACCOUNT(a) 1999* 1998 1997 1996 1995 1994
- -------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from Investment Operations:
Net Investment Income............................... .023 .051 .051 .049 .054 .037
Less Dividends from Net Investment Income.............. (.023) (.051) (.051) (.049) (.054) (.037)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
Total Return........................................... 2.24%(c) 5.20% 5.04% 5.07% 5.59% 3.76%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $79,582 $83,263 $47,315 $46,244 $32,670 $29,372
Ratio of Expenses to Average Net Assets............. .54%(d) .52% .55% .56% .58% .60%
Ratio of Net Investment Income to Average Net Assets 4.87%(d) 5.06% 5.12% 5.00% 5.32% 3.81%
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE ACCOUNT(a) 1999* 1998(h)
- ------------------- ---- ----
<S> <C> <C>
Net Asset Value, Beginning of Period................... $9.07 $10.01
Income from Investment Operations:
Net Investment Income............................... .22 .32
Net Realized and Unrealized Gain (Loss)
on Investments.................................... .15 (.97)
------ -----
Total from Investment Operations .37 (.65)
Less Dividends from Net Investment Income.............. (.04) (.29)
------ -----
Net Asset Value, End of Period......................... $9.40 $9.07
====== =====
Total Return........................................... 4.09%(c) (6.56)%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $11,868 $10,909
Ratio of Expenses to Average Net Assets............. 1.04%(d) 1.00%(d)
Ratio of Net Investment Income to Average Net Assets 5.16%(d) 5.40%(d)
Portfolio Turnover Rate............................. 73.6%(d) 5.6%(d)
<FN>
*Periods Ended June 30, 1999
</FN>
</TABLE>
FINANCIAL HIGHLIGHTS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
SMALLCAP ACCOUNT 1999* 1998(h)
- ---------------- ---- ----
<S> <C> <C>
Net Asset Value, Beginning of Period................... $8.21 $10.27
Income from Investment Operations:
Net Investment Income............................... -- --
Net Realized and Unrealized Gain (Loss)
on Investments................................... 1.55 (2.06)
------ -----
Total from Investment Operations 1.55 (2.06)
------ -----
Net Asset Value, End of Period......................... $9.76 $8.21
====== =====
Total Return........................................... 18.88%(c) (20.51)%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $18,072 $12,094
Ratio of Expenses to Average Net Assets............. .96%(d) .98%(d)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ --(d) (.05)%(d)
Portfolio Turnover Rate............................. 82.5%(d) 45.2%(d)
</TABLE>
<TABLE>
<CAPTION>
SMALLCAP GROWTH ACCOUNT 1999* 1998(h)
- ----------------------- ---- ----
<S> <C> <C>
Net Asset Value, Beginning of Period................... $10.10 $9.84
Income from Investment Operations:
Net Investment Income (Operating Loss)(i)........... (.02) (.04)
Net Realized and Unrealized Gain on Investments..... 2.71 .30
------ -----
Total from Investment Operations 2.69 .26
------ -----
Net Asset Value, End of Period......................... $12.79 $10.10
====== =====
Total Return........................................... 26.63%(c) 2.96%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $13,478 $8,463
Ratio of Expenses to Average Net Assets............. 1.05%(d) 1.31%(d)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ (.60)%(d) (.80)%(d)
Portfolio Turnover Rate............................. 135.3%(d) 166.5%(d)
</TABLE>
<TABLE>
<CAPTION>
SMALLCAP VALUE ACCOUNT 1999* 1998(h)
- ----------------------- ---- ----
<S> <C> <C>
Net Asset Value, Beginning of Period................... $8.34 $9.84
Income from Investment Operations:
Net Investment Income(i)............................ .03 .03
Net Realized and Unrealized Gain (Loss)
on Investments.................................... .75 (1.50)
------ -----
Total from Investment Operations .78 (1.47)
Less Dividends from Net Investment Income.............. -- (.03)
------ -----
Net Asset Value, End of Period......................... $9.12 $8.34
====== =====
Total Return........................................... 9.26%(c) (15.06)%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $8,862 $6,895
Ratio of Expenses to Average Net Assets............. 1.15%(d) 1.56%(d)
Ratio of Net Investment Income to Average Net Assets .83%(d) .73%(d)
Portfolio Turnover Rate............................. 98.1%(d) 53.4%(d)
<FN>
*Six Months Ended June 30, 1999
</FN>
</TABLE>
See accompanying notes.
Selected data for a share of Capital Stock outstanding throughout the periods
ended December 31 (except as noted):
STOCK INDEX 500 ACCOUNT(f) 1999*
- ----------------------- ----
Net Asset Value, Beginning of Period................... $9.83
Income from Investment Operations:
Net Investment Income(i)............................ .02
Net Realized and Unrealized Gain on Investments..... .25
------
Total from Investment Operations .27
Less Dividends from Net Investment Income.............. --
------
Net Asset Value, End of Period......................... $10.10
======
Total Return........................................... 2.75%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ 15,504
Ratio of Expenses to Average Net Assets............. .40%(d)
Ratio of Net Investment Income to Average Net Assets 1.70%(d)
Portfolio Turnover Rate............................. 3.2%(d)
<TABLE>
<CAPTION>
UTILITIES ACCOUNT 1999* 1998(h)
- ----------------- ---- ----
<S> <C> <C>
Net Asset Value, Beginning of Period................... $10.93 $9.61
Income from Investment Operations:
Net Investment Income............................... .12 .15
Net Realized and Unrealized Gain on Investments..... .41 1.35
------ -----
Total from Investment Operations .53 1.50
Less Dividends from Net Investment Income.............. -- (.18)
------ -----
Net Asset Value, End of Period......................... $11.46 $10.93
====== =====
Total Return........................................... 4.85%(c) 15.36%(c)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $25,681 $18,298
Ratio of Expenses to Average Net Assets............. .69%(d) .69%(d)
Ratio of Net Investment Income to Average Net Assets 2.57%(d) 2.93%(d)
Portfolio Turnover Rate............................. 22.1%(d) 9.5%(d)
<FN>
*Periods Ended June 30, 1999
</FN>
</TABLE>
Notes to Financial Highlights
(a) Effective January 1, 1998 the following mutual funds were reorganized into
the Principal Variable Contracts Fund, Inc. as follows:
Former Fund Name Current Account Name
---------------- --------------------
Principal Aggressive Growth Fund, Inc. Aggressive Growth Account
Principal Asset Allocation Fund, Inc. Asset Allocation Account
Principal Balanced Fund, Inc. Balanced Account
Principal Bond Fund, Inc. Bond Account
Principal Capital Accumulation Fund, Inc. Capital Value Account
Principal Government Securities Fund, Inc. Government Securities Account
Principal Growth Fund, Inc. Growth Account
Principal High Yield Fund, Inc. High Yield Account
Principal World Fund, Inc. International Account
Principal Emerging Growth Fund, Inc. MidCap Account
Principal Money Market Fund, Inc. Money Market Account
(b) Period from June 1, 1994, date shares first offered to public, through
December 31, 1994. Net investment income, aggregating $.01 per share for
the Aggressive Growth Account and $.01 per share for the Asset Allocation
Account for the period from the initial purchase of shares on May 23, 1994
through May 31, 1994, was recognized, none of which was distributed to the
sole shareholder, Principal Life Insurance Company, during the period.
Additionally, the Aggressive Growth Account and the Asset Allocation
Account incurred unrealized losses on investments of $.09 and $.03 per
share, respectively, during the initial interim period. This represented
activities of each account prior to the initial public offering of account
shares.
(c) Total return amounts have not been annualized.
FINANCIAL HIGHLIGHTS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Notes to Financial Highlights (Continued)
(d) Computed on an annualized basis.
(e) Dividends and distributions which exceed net investment income and net
realized gains for financial reporting purposes but not for tax purposes
are reported as dividends in excess of net investment income or
distributions in excess of net realized gains on investments. To the extent
distributions exceed current and accumulated earnings and profits for
federal income tax purposes, they are reported as tax return of capital
distributions.
(f) Period from May 1, 1999, date shares first offered to the public, through
June 30, 1999. Per share net investment income and realized and unrealized
gains (losses) for the period from the initial purchase of shares through
April 30, 1999, were recognized as follows, none of which was distributed
to the sole shareholder, Principal Life Insurance Company, during the
period. This represents activities of each account prior to the initial
public offering.
<TABLE>
<CAPTION>
Date Net Per Share Realized
Operations Investment and Unrealized
Account Commenced Income Gains (Losses)
----------------------- -------------- ---------- ------------------
<S> <C> <C> <C> <C>
Blue Chip Account April 15, 1999 $.01 $ --
LargeCap Growth Account April 15, 1999 -- (.07)
MidCap Value Account April 22, 1999 -- .09
Stock Index 500 Account April 22, 1999 .01 (.18)
</TABLE>
(g) Period from May 1, 1994, date shares first offered to the public, through
December 31, 1994. Net investment income, aggregating $.01 per share for
the Growth Account and $.04 per share for the International Account for the
period from the initial purchase of shares on March 23, 1994 through April
30, 1994, was recognized, none of which was distributed to the sole
shareholder, Principal Life Insurance Company, during the period.
Additionally, the Growth Account and the International Account incurred
unrealized losses on investments of $.41 and $.10 per share, respectively,
during the initial interim period. This represented activities of each
account prior to the initial public offering of account shares.
(h) Period from May 1, 1998, date shares first offered to the public, through
December 31, 1998. Per share net investment income and realized and
unrealized gains (losses) for the period from the initial purchase of
shares through April 30, 1998, were recognized as follows, none of which
was distributed to the sole shareholder, Principal Life Insurance Company,
during the period. This represents activities of each account prior to the
initial public offering.
<TABLE>
<CAPTION>
Date Net Per Share Realized
Operations Investment and Unrealized
Account Commenced Income Gains (Losses)
------------------------------ -------------- ---------- ------------------
<S> <C> <C> <C> <C>
International SmallCap Account April 16, 1998 $.02 $(.05)
MicroCap Account April 9, 1998 .01 .03
MidCap Growth Account April 23, 1998 .01 (.07)
Real Estate Account April 23, 1998 .01 --
SmallCap Account April 9, 1998 -- .27
SmallCap Growth Account April 2, 1998 -- (.16)
SmallCap Value Account April 16, 1998 .01 (.17)
Utilities Account April 2, 1998 .04 (.43)
</TABLE>
(i) Without the Manager's voluntary waiver of a portion of certain of its
expenses (see Note 3 to the financial statements) for the periods
indicated, the following accounts would have had per share net investment
income and the ratios of expenses to average net assets as shown:
<TABLE>
<CAPTION>
Per Share Ratio of Expenses
Periods Ended Net Investment to Average Net Amount
Account June 30 Income (Loss) Assets Waived
----------------------- ------------- -------------- ----------------- -------
<S> <C> <C> <C> <C> <C>
LargeCap Growth Account 1999 $ -- 1.28% $ 666
MicroCap Account 1999 -- 1.40 9,530
MidCap Growth Account 1999 -- 1.20 11,073
MidCap Value Account 1999 .01 1.22 396
SmallCap Growth Account 1999 (.03) 1.19 7,025
SmallCap Value Account 1999 .02 1.41 9,506
Stock Index 500 Account 1999 .02 .63 4,406
</TABLE>
MM 1291-3
