A MESSAGE TO PRINCIPAL VARIABLE LIFE AND VARIABLE ANNUITY
CONTRACT OWNERS
Dear Contract Owner:
Performance results for the accounts within the Principal Variable Contracts
Fund, Inc. varied widely in 1999. As you can see from the performance
information, included in the "Financial Highlights" section of this report,
international-equity accounts results were strong, domestic equity accounts
performances was mixed (albeit with some impressive standouts), and
income-oriented accounts struggled to hold their own as interest rates crept up
during the year.
This range of returns reinforces the benefits of diversification and asset
allocation within an investment portfolio. Your registered representative has
the tools necessary to help you develop an asset allocation strategy which
carries the appropriate risk/return potential for your particular situation.
We continue to strive to provide you with the products and services you need to
pursue your investment objectives confidently. Thank you for letting us help you
work toward your long-term financial goals.
CONTENTS
Page
Financial Statements and Highlights
Statements of Assets and Liabilities............................. 4
Statements of Operations ........................................ 10
Statements of Changes in Net Assets.............................. 16
Notes to Financial Statements.................................... 26
Schedules of Investments
Aggressive Growth Account................................... 36
Asset Allocation Account.................................... 37
Balanced Account............................................ 44
Blue Chip Account........................................... 47
Bond Account................................................ 48
Capital Value Account....................................... 51
Government Securities Account............................... 53
Growth Account.............................................. 54
High Yield Account.......................................... 55
International Account....................................... 57
International SmallCap Account.............................. 59
LargeCap Growth Account..................................... 62
MicroCap Account............................................ 63
MidCap Account.............................................. 64
MidCap Growth Account....................................... 66
MidCap Value Account........................................ 68
Money Market Account........................................ 70
Real Estate Account......................................... 73
SmallCap Account............................................ 74
SmallCap Growth Account..................................... 76
SmallCap Value Account...................................... 77
Stock Index 500 Account..................................... 82
Utilities Account........................................... 89
Financial Highlights............................................. 90
Report of Independent Auditors....................................... 99
Results of Contract Owners Meeting................................... 100
December 31, 1999
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Aggressive Asset Blue
Growth Allocation Balanced Chip
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $262,924,417 $72,498,612 $195,896,045 $ 6,037,922
Assets
Investment in securities -- at value (Note 4)......... $369,176,544 $86,737,115 $207,993,875 $ 6,316,492
Cash ................................................. 19,194,838 2,473,046 220,252 102,857
Receivables:
Dividends and interest............................. 175,533 443,438 1,359,031 10,553
Investment securities sold......................... -- 33,982 -- --
Capital Shares sold................................ 244,516 71,172 273,106 25,868
Total Assets 388,791,431 89,758,753 209,846,264 6,455,770
Liabilities
Accrued expenses...................................... 58,947 31,093 23,330 2,303
Payables:
Investment securities purchased.................... 9,670,166 17,099 -- --
Capital Shares reacquired.......................... -- -- 75,622 --
Total Liabilities 9,729,113 48,192 98,952 2,303
Net Assets Applicable to Outstanding Shares........... $379,062,318 $89,710,561 $209,747,312 $ 6,453,467
Net Assets Consist of:
Capital Stock......................................... $ 158,656 $ 67,806 $ 136,072 $ 6,217
Additional paid-in capital............................ 259,459,709 73,879,214 197,770,072 6,200,427
Accumulated undistributed (overdistributed)
net investment income.............................. -- -- (11,210) --
Accumulated undistributed (overdistributed)
net realized gain (loss) from investment and
foreign currency transactions ..................... 13,191,826 1,525,038 (245,452) (31,747)
Net unrealized appreciation (depreciation)
of investments..................................... 106,252,127 14,238,503 12,097,830 278,570
Net unrealized depreciation on translation of assets
and liabilities in foreign currencies.............. -- -- -- --
Total Net Assets $379,062,318 $89,710,561 $209,747,312 $ 6,453,467
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......................... 15,865,566 6,780,598 13,607,193 621,699
Net Asset Value Per Share............................. $23.89 $13.23 $15.41 $10.38
</TABLE>
<TABLE>
<CAPTION>
Capital Government
Bond Value Securities Growth
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $129,082,982 $328,747,255 $139,610,762 $263,482,501
Assets
Investment in securities -- at value (Note 4)......... $121,844,959 $367,061,175 $136,109,698 $345,416,272
Cash ................................................. 393,450 350,760 199,224 229,559
Receivables:
Dividends and interest............................. 2,439,767 376,744 1,350,719 187,725
Investment securities sold......................... -- -- -- --
Capital Shares sold................................ 402,448 416,602 145,840 285,334
Total Assets 125,080,624 368,205,281 137,805,481 346,118,890
Liabilities
Accrued expenses...................................... 12,392 32,285 15,703 24,072
Payables:
Investment securities purchased.................... -- -- -- --
Capital Shares reacquired.......................... 1,572 246,230 2,308 213,225
Total Liabilities 13,964 278,515 18,011 237,297
Net Assets Applicable to Outstanding Shares........... $125,066,660 $367,926,766 $137,787,470 $345,881,593
Net Assets Consist of:
Capital Stock......................................... $ 114,878 $ 119,679 $ 134,343 $ 146,812
Additional paid-in capital............................ 132,680,252 338,785,431 141,469,251 226,086,123
Accumulated undistributed (overdistributed)
net investment income.............................. 435 -- 13,699 20,316
Accumulated undistributed (overdistributed)
net realized gain (loss) from investment and
foreign currency transactions ..................... (490,882) (9,292,264) (328,759) 37,694,571
Net unrealized appreciation (depreciation)
of investments..................................... (7,238,023) 38,313,920 (3,501,064) 81,933,771
Net unrealized depreciation on translation of assets
and liabilities in foreign currencies.............. -- -- -- --
Total Net Assets $125,066,660 $367,926,766 $137,787,470 $345,881,593
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......................... 11,487,829 11,967,856 13,434,322 14,681,173
Net Asset Value Per Share............................. $10.89 $30.74 $10.26 $23.56
</TABLE>
<TABLE>
<CAPTION>
High
Yield International
Account Account
<S> <C> <C>
Investment in securities -- at cost................... $14,377,050 $157,794,402
Assets
Investment in securities -- at value (Note 4)......... $13,223,507 $196,499,892
Cash ................................................. 211,390 285,185
Receivables:
Dividends and interest............................. 246,343 291,106
Investment securities sold......................... -- --
Capital Shares sold................................ -- 244,436
Total Assets 13,681,240 197,320,619
Liabilities
Accrued expenses...................................... 3,480 59,266
Payables:
Investment securities purchased.................... -- --
Capital Shares reacquired.......................... 35 25,877
Total Liabilities 3,515 85,143
Net Assets Applicable to Outstanding Shares........... $13,677,725 $197,235,476
Net Assets Consist of:
Capital Stock......................................... $ 18,384 $ 123,641
Additional paid-in capital............................ 16,155,844 161,035,025
Accumulated undistributed (overdistributed)
net investment income.............................. (84,053) (68,786)
Accumulated undistributed (overdistributed)
net realized gain (loss) from investment and
foreign currency transactions ..................... (1,258,907) (2,549,970)
Net unrealized appreciation (depreciation)
of investments..................................... (1,153,543) 38,705,490
Net unrealized depreciation on translation of assets
and liabilities in foreign currencies.............. -- (9,924)
Total Net Assets $13,677,725 $197,235,476
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000
Shares issued and outstanding......................... 1,838,368 12,364,108
Net Asset Value Per Share............................. $7.44 $15.95
</TABLE>
See accompanying notes.
December 31, 1999
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
International LargeCap
SmallCap Growth MicroCap MidCap
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $28,818,369 $4,908,923 $6,175,975 $207,142,516
Assets
Investment in securities -- at value (Note 4)......... $39,599,410 $6,832,783 $5,868,814 $260,730,131
Cash ................................................. 595,521 190,662 519,491 199,663
Receivables:
Dividends and interest............................. 17,246 1,128 4,667 56,596
Investment securities sold......................... 39,531 -- 22,749 1,459,552
Capital Shares sold................................ 58,689 23,575 5,761 218,075
Total Assets 40,310,397 7,048,148 6,421,482 262,664,017
Liabilities
Accrued expenses...................................... 11,555 3,517 3,814 24,063
Payables:
Investment securities purchased.................... 188,722 -- -- --
Capital Shares reacquired.......................... -- -- -- 290,129
Foreign currency contract.......................... 70,346 -- -- --
Total Liabilities 270,623 3,517 3,814 314,192
Net Assets Applicable to Outstanding Shares........... $40,039,774 $7,044,631 $6,417,668 $262,349,825
Net Assets Consist of:
Capital Stock......................................... $ 24,030 $ 5,313 $ 7,952 $ 71,090
Additional paid-in capital............................ 26,316,836 5,327,944 7,526,896 195,819,350
Accumulated undistributed net investment income....... -- -- 3,558 --
Accumulated undistributed net realized
gain (loss) on investment transactions............. 2,918,545 (212,486) (813,577) 12,871,770
Net unrealized appreciation (depreciation)
of investments..................................... 10,781,041 1,923,860 (307,161) 53,587,615
Net unrealized depreciation on translation of assets
and liabilities in foreign currencies.............. (678) -- -- --
Total Net Assets $40,039,774 $7,044,631 $6,417,668 $262,349,825
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......................... 2,402,990 531,316 795,241 7,108,966
Net Asset Value Per Share............................. $16.66 $13.26 $8.07 $36.90
</TABLE>
<TABLE>
<CAPTION>
MidCap MidCap Money Real
Growth Value Market Estate
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $12,240,325 $5,179,117 $120,443,588 $10,895,712
Assets
Investment in securities -- at value (Note 4)......... $13,707,406 $5,366,586 $120,443,588 $10,428,737
Cash ................................................. 464,849 460,250 46,451 65,000
Receivables:
Dividends and interest............................. 11,341 3,579 268,581 64,299
Investment securities sold......................... -- 5,318 -- --
Capital Shares sold................................ 89,980 5,045 605,491 5,433
Total Assets 14,273,576 5,840,778 121,364,111 10,563,469
Liabilities
Accrued expenses...................................... 9,281 4,030 14,375 3,185
Payables:
Investment securities purchased.................... -- 81,106 -- --
Capital Shares reacquired.......................... -- -- 426,026 --
Foreign currency contract.......................... -- -- -- --
Total Liabilities 9,281 85,136 440,401 3,185
Net Assets Applicable to Outstanding Shares........... $14,264,295 $5,755,642 $120,923,710 $10,560,284
Net Assets Consist of:
Capital Stock......................................... $ 13,379 $ 5,180 $ 1,209,237 $ 12,876
Additional paid-in capital............................ 12,783,662 5,177,337 119,714,473 12,623,617
Accumulated undistributed net investment income....... 3,224 -- -- 21,800
Accumulated undistributed net realized
gain (loss) on investment transactions............. (3,051) 385,656 -- (1,631,034)
Net unrealized appreciation (depreciation)
of investments..................................... 1,467,081 187,469 -- (466,975)
Net unrealized depreciation on translation of assets
and liabilities in foreign currencies.............. -- -- -- --
Total Net Assets $14,264,295 $5,755,642 $120,923,710 $10,560,284
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......................... 1,337,875 518,033 120,923,710 1,287,623
Net Asset Value Per Share............................. $10.66 $11.11 $1.000 $8.20
</TABLE>
<TABLE>
<CAPTION>
SmallCap
SmallCap Growth
Account Account
<S> <C> <C>
Investment in securities -- at cost................... $24,141,741 $21,231,414
Assets
Investment in securities -- at value (Note 4)......... $25,200,898 $35,373,279
Cash ................................................. 199,897 4,395,008
Receivables:
Dividends and interest............................. 14,150 8,936
Investment securities sold......................... 619,023 938,664
Capital Shares sold................................ 82,165 135,654
Total Assets 26,116,133 40,851,541
Liabilities
Accrued expenses...................................... 6,490 5,770
Payables:
Investment securities purchased.................... -- 1,170,590
Capital Shares reacquired.......................... -- --
Foreign currency contract.......................... -- --
Total Liabilities 6,490 1,176,360
Net Assets Applicable to Outstanding Shares........... $26,109,643 $39,675,181
Net Assets Consist of:
Capital Stock......................................... $ 24,304 $ 20,281
Additional paid-in capital............................ 22,817,598 24,580,815
Accumulated undistributed net investment income....... 91 --
Accumulated undistributed net realized
gain (loss) on investment transactions............. 2,208,493 932,220
Net unrealized appreciation (depreciation)
of investments..................................... 1,059,157 14,141,865
Net unrealized depreciation on translation of assets
and liabilities in foreign currencies.............. -- --
Total Net Assets $26,109,643 $39,675,181
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000
Shares issued and outstanding......................... 2,430,372 2,028,072
Net Asset Value Per Share............................. $10.74 $19.56
</TABLE>
See accompanying notes.
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
SmallCap Stock Index
Value 500 Utilities
Account Account Account
<S> <C> <C> <C>
Investment in securities -- at cost................... $ 9,208,129 $42,895,988 $29,387,051
Assets
Investment in securities -- at value (Note 4)......... $10,201,523 $45,633,273 $30,393,843
Cash ................................................. 821,851 211,567 215,954
Receivables:
Dividends and interest............................. 13,407 27,786 34,031
Investment securities sold......................... 20,029 3,225 --
Capital Shares sold................................ 34,180 218,373 45,610
Variation margin on futures contracts (Note 7)........ -- 18,775 --
Total Assets 11,090,990 46,112,999 30,689,438
Liabilities
Accrued expenses...................................... 7,683 13,142 5,292
Payable for investment securities purchased........... 2,850 11,535 --
Total Liabilities 10,533 24,677 5,292
Net Assets Applicable to Outstanding Shares........... $11,080,457 $46,088,322 $30,684,146
Net Assets Consist of:
Capital Stock......................................... $ 11,016 $ 43,028 $ 28,150
Additional paid-in capital............................ 10,082,861 43,026,692 29,260,606
Accumulated undistributed net investment income....... 1,583 459 1,506
Accumulated undistributed net realized
gain (loss) on investment transactions............. (8,397) 55,246 387,092
Net unrealized appreciation of investments............ 993,394 2,962,897 1,006,792
Total Net Assets $11,080,457 $46,088,322 $30,684,146
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000 100,000,000
Shares issued and outstanding......................... 1,101,640 4,302,824 2,815,009
Net Asset Value Per Share............................. $10.06 $10.71 $10.90
</TABLE>
See accompanying notes.
Year Ended December 31, 1999, Except as Noted
<TABLE>
<CAPTION>
Year Ended December 31, 1999, Except as Noted
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Aggressive Asset Blue
Growth Allocation Balanced Chip
Account Account Account Account(a)
<S> <C> <C> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ 1,599,331 $ 755,927 $ 2,245,311 $ 71,788
Withholding tax on foreign dividends................. -- -- -- --
Interest............................................. 364,863 2,128,866 6,161,464 9,495
Total Income 1,964,194 2,884,793 8,406,775 81,283
Expenses:
Management and investment advisory fees (Note 3)..... 2,148,624 688,699 1,218,845 24,000
Custodian fees....................................... 29,896 38,975 5,319 1,643
Directors' fees...................................... 6,631 6,476 6,656 2,271
Other................................................ 3,343 1,004 2,669 15
Total Expenses 2,188,494 735,154 1,233,489 27,929
Net Investment Income (Operating Loss) (224,300) 2,149,639 7,173,286 53,354
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 35,928,978 7,774,018 6,137,003 (31,747)
Foreign currency transactions........................ -- -- -- --
Change in unrealized appreciation/depreciation of:
Investments 65,213,176 5,375,693 (8,446,637) 278,570
Translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currencies 101,142,154 13,149,711 (2,309,634) 246,823
Net Increase (Decrease) in Net Assets
Resulting from Operations $100,917,854 $15,299,350 $ 4,863,652 $300,177
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31,
1999.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Capital Government
Bond Value Securities Growth
Account Account Account Account
<S> <C> <C> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ -- $ 9,534,852 $ -- $ 2,958,449
Withholding tax on foreign dividends................. -- -- -- --
Interest............................................. 9,206,654 428,311 9,495,370 462,397
Total Income 9,206,654 9,963,163 9,495,370 3,420,846
Expenses:
Management and investment advisory fees (Note 3)..... 619,181 1,708,021 692,022 1,366,818
Custodian fees....................................... 2,956 2,804 7,996 3,559
Directors' fees...................................... 6,555 6,631 6,417 6,633
Other................................................ 1,565 5,075 7,144 3,784
Total Expenses 630,257 1,722,531 713,579 1,380,794
Net Investment Income (Operating Loss) 8,576,397 8,240,632 8,781,791 2,040,052
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. (389,028) 28,203,265 56,873 37,694,571
Foreign currency transactions........................ -- -- -- --
Change in unrealized appreciation/depreciation of:
Investments (11,581,812) (53,910,054) (9,257,079) 7,380,568
Translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currencies (11,970,840) (25,706,789) (9,200,206) 45,075,139
Net Increase (Decrease) in Net Assets
Resulting from Operations $ (3,394,443) $(17,466,157) $ (418,415) $47,115,191
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31,
1999.
</FN>
</TABLE>
<TABLE>
<CAPTION>
High
Yield International
Account Account
<S> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ -- $ 6,606,915
Withholding tax on foreign dividends................. -- (421,576)
Interest............................................. 1,290,881 346,744
Total Income 1,290,881 6,532,083
Expenses:
Management and investment advisory fees (Note 3)..... 84,208 1,225,255
Custodian fees....................................... 2,628 80,751
Directors' fees...................................... 6,556 6,628
Other................................................ 187 2,075
Total Expenses 93,579 1,314,709
Net Investment Income (Operating Loss) 1,197,302 5,217,374
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. (593,513) 12,770,609
Foreign currency transactions........................ -- (188,994)
Change in unrealized appreciation/depreciation of:
Investments (350,732) 22,605,722
Translation of assets and liabilities in
foreign currencies................................. -- 28,434
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currencies (944,245) 35,215,771
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 253,057 $40,433,145
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31,
1999.
</FN>
See accompanying notes.
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31, 1999, Except as Noted
STATEMENTS OF OPERATIONS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
International LargeCap
SmallCap Growth MicroCap MidCap
Account Account(a) Account Account
<S> <C> <C> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ 181,498 $ 16,418 $ 57,589 $ 1,930,560
Withholding tax on foreign dividends................. (19,456) -- -- --
Interest............................................. 54,720 14,325 18,362 395,999
Total Income 216,762 30,743 75,951 2,326,559
Expenses:
Management and investment advisory fees (Note 3)..... 250,499 43,238 59,482 1,522,214
Custodian fees....................................... 18,265 2,691 10,281 4,455
Directors' fees...................................... 6,480 2,271 6,466 6,631
Other................................................ 289 14 76 --
Total Gross Expenses 275,533 48,214 76,305 1,533,300
Less: Management and investment
advisory fees waived................................. -- 2,452 13,239 --
Total Net Expenses 275,533 45,762 63,066 1,533,300
Net Investment Income (Operating Loss) (58,771) (15,019) 12,885 793,259
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 5,064,804 (212,486) (531,506) 19,365,345
Foreign currency transactions........................ (94,301) -- -- --
Other investment companies........................... -- -- -- --
Change in unrealized appreciation/depreciation of:
Investments ......................................... 11,524,103 1,923,860 432,502 9,954,987
Translation of assets and liabilities in
foreign currencies................................. (1,031) -- -- --
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies 16,493,575 1,711,374 (99,004) 29,320,332
Net Increase (Decrease) in Net Assets
Resulting from Operations $16,434,804 $1,696,355 $ (86,119) $30,113,591
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31,
1999.
(b) Period from April 22, 1999 (date operations commenced) through
December 31, 1999.
</FN>
</TABLE>
<TABLE>
<CAPTION>
MidCap MidCap Money Real
Growth Value Market Estate
Account Account(b) Account Account
<S> <C> <C> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ 115,886 $ 44,312 $ -- $ 635,714
Withholding tax on foreign dividends................. -- -- -- --
Interest............................................. 13,388 7,648 4,687,277 19,634
Total Income 129,274 51,960 4,687,277 655,348
Expenses:
Management and investment advisory fees (Note 3)..... 95,048 37,469 440,147 99,831
Custodian fees....................................... 14,243 5,100 9,369 1,926
Directors' fees...................................... 6,455 2,272 6,317 6,628
Other................................................ 111 15 440 1,679
Total Gross Expenses 115,857 44,856 456,273 110,064
Less: Management and investment
advisory fees waived................................. 14,359 2,400 -- --
Total Net Expenses 101,498 42,456 456,273 110,064
Net Investment Income (Operating Loss) 27,776 9,504 4,231,004 545,284
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 731,050 502,244 -- (1,479,221)
Foreign currency transactions........................ -- -- -- --
Other investment companies........................... -- -- -- 20,088
Change in unrealized appreciation/depreciation of:
Investments ......................................... 597,863 187,469 -- 390,875
Translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies 1,328,913 689,713 -- (1,068,258)
Net Increase (Decrease) in Net Assets
Resulting from Operations $1,356,689 $699,217 $4,231,004 $ (522,974)
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31,
1999.
(b) Period from April 22, 1999 (date operations commenced) through
December 31, 1999.
</FN>
</TABLE>
<TABLE>
<CAPTION>
SmallCap
SmallCap Growth
Account Account
<S> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ 122,050 $ 64,780
Withholding tax on foreign dividends................. -- --
Interest............................................. 47,347 4,086
Total Income 169,397 68,866
Expenses:
Management and investment advisory fees (Note 3)..... 149,481 153,958
Custodian fees....................................... 4,695 5,435
Directors' fees...................................... 6,466 6,552
Other................................................ 519 342
Total Gross Expenses 161,161 166,287
Less: Management and investment
advisory fees waived................................. -- 3,049
Total Net Expenses 161,161 163,238
Net Investment Income (Operating Loss) 8,236 (94,372)
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 4,522,953 2,142,989
Foreign currency transactions........................ -- --
Other investment companies........................... -- --
Change in unrealized appreciation/depreciation of:
Investments ......................................... 2,652,903 12,830,588
Translation of assets and liabilities in
foreign currencies................................. -- --
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies 7,175,856 14,973,577
Net Increase (Decrease) in Net Assets
Resulting from Operations $7,184,092 $14,879,205
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31,
1999.
(b) Period from April 22, 1999 (date operations commenced) through
December 31, 1999.
</FN>
</TABLE>
See accompanying notes.
<TABLE>
<CAPTION>
Year Ended December 31, 1999, Except as Noted
STATEMENTS OF OPERATIONS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
SmallCap Stock Index
Value 500 Utilities
Account Account(a) Account
<S> <C> <C> <C>
Net Investment Income
Income:
Dividends............................................ $ 146,431 $ 193,726 $ 713,054
Interest............................................. 23,772 128,847 79,044
Total Income 170,203 322,573 792,098
Expenses:
Management and investment advisory fees (Note 3)..... 94,464 61,479 150,219
Custodian fees....................................... 22,524 22,262 2,497
Directors' fees...................................... 6,462 2,272 6,543
Other................................................ 115 257 301
Total Gross Expenses 123,565 86,270 159,560
Less: Management and investment
advisory fees waived................................. 23,900 15,995 --
Total Net Expenses 99,665 70,275 159,560
Net Investment Income 70,538 252,298 632,538
Net Realized and Unrealized Gain (Loss) on
Investments
Net realized gain from investment transactions.......... 490,603 381,179 539,988
Change in unrealized appreciation/depreciation of:
Investments ......................................... 1,306,560 2,737,285 (571,384)
Futures Contracts (Note 7)........................... -- 225,612 --
Net Realized and Unrealized
Gain (Loss) on Investments 1,797,163 3,344,076 (31,396)
Net Increase in Net Assets Resulting
from Operations $1,867,701 $3,596,374 $ 601,142
<FN>
(a) Period from April 22, 1999 (date operations commenced) through December 31,
1999.
</FN>
</TABLE>
See accompanying notes.
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Aggressive Growth Asset Allocation
Account Account
Year Year Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ (224,300) $ 416,093 $ 2,149,639 $ 2,045,074
Net realized gain (loss) from investment transactions.. 35,928,978 8,924,147 7,774,018 2,109,740
Change in unrealized appreciation/depreciation
of investments...................................... 65,213,176 21,906,942 5,375,693 2,810,389
Net Increase (Decrease) in Net Assets
Resulting from Operations 100,917,854 31,247,182 15,299,350 6,965,203
Dividends and Distributions to Shareholders
From net investment income............................. -- (414,827) (2,154,921) (2,028,007)
Excess dividends from net investment income........... -- -- -- --
From net realized gain on investments.................. (23,403,393) (10,737,997) (6,653,505) (2,641,599)
Excess distributions of net realized gain on
investments......................................... -- -- -- --
Tax return of capital distributions.................... -- -- -- --
Total Dividends and Distributions (23,403,393) (11,152,824) (8,808,426) (4,669,606)
Capital Share Transactions (Note 5)
Shares sold............................................ 70,412,199 72,833,445 8,283,088 14,893,506
Shares issued in reinvestment of dividends
and distributions................................... 23,403,393 11,077,348 7,743,895 3,422,465
Shares redeemed........................................ (16,325,801) (29,129,088) (16,896,631) (13,326,727)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 77,489,791 54,781,705 (869,648) 4,989,244
Total Increase 155,004,252 74,876,063 5,621,276 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 (overdistributed)
net investment income as set forth below]........... $379,062,318 $224,058,066 $ 89,710,561 $ 84,089,285
Undistributed (Overdistributed) Net Investment
Income.............................................. $ -- $ 11,545 $ -- $ 43,376
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31,
1999.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Balanced Blue Chip
Account Account
Year Year Period
Ended Ended Ended
December 31, December 31, December 31,
1999 1998 1999(a)
<S> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ 7,173,286 $ 5,571,969 $ 53,354
Net realized gain (loss) from investment transactions.. 6,137,003 6,127,300 (31,747)
Change in unrealized appreciation/depreciation
of investments...................................... (8,446,637) 6,919,746 278,570
Net Increase (Decrease) in Net Assets
Resulting from Operations 4,863,652 18,619,015 300,177
Dividends and Distributions to Shareholders
From net investment income............................. (7,245,852) (5,549,524) (53,354)
Excess dividends from net investment income........... (10,394) -- --
From net realized gain on investments.................. (7,861,220) (6,200,923) --
Excess distributions of net realized gain on
investments......................................... (243,460) -- --
Tax return of capital distributions.................... -- -- (492)
Total Dividends and Distributions (15,360,926) (11,750,447) (53,846)
Capital Share Transactions (Note 5)
Shares sold............................................ 30,775,483 58,745,324 6,284,956
Shares issued in reinvestment of dividends
and distributions................................... 15,360,054 11,678,013 10,146
Shares redeemed........................................ (24,494,245) (12,515,718) (87,966)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 21,641,292 57,907,619 6,207,136
Total Increase 11,144,018 64,776,187 6,453,467
Net Assets
Beginning of period.................................... 198,603,294 133,827,107 --
End of period [including undistributed (overdistributed)
net investment income as set forth below]........... $209,747,312 $198,603,294 $6,453,467
Undistributed (Overdistributed) Net Investment
Income.............................................. $ (11,210) $ 72,566 $ --
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31,
1999.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Bond
Account
Year Year
Ended Ended
December 31, December 31,
1999 1998
<S> <C> <C>
Operations
Net investment income (operating loss)................. $ 8,576,397 $ 6,310,353
Net realized gain (loss) from investment transactions.. (389,028) 171,543
Change in unrealized appreciation/depreciation
of investments...................................... (11,581,812) 665,410
Net Increase (Decrease) in Net Assets
Resulting from Operations (3,394,443) 7,147,306
Dividends and Distributions to Shareholders
From net investment income............................. (8,702,169) (6,229,921)
Excess dividends from net investment income........... -- --
From net realized gain on investments.................. -- --
Excess distributions of net realized gain on
investments......................................... -- (64,690)
Tax return of capital distributions.................... -- --
Total Dividends and Distributions (8,702,169) (6,294,611)
Capital Share Transactions (Note 5)
Shares sold............................................ 22,315,562 43,746,705
Shares issued in reinvestment of dividends
and distributions................................... 8,702,169 6,235,729
Shares redeemed........................................ (15,827,234) (10,783,022)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 15,190,497 39,199,412
Total Increase 3,093,885 40,052,107
Net Assets
Beginning of period.................................... 121,972,775 81,920,668
End of period [including undistributed (overdistributed)
net investment income as set forth below]........... $125,066,660 $121,972,775
Undistributed (Overdistributed) Net Investment
Income.............................................. $ 435 $ 132,464
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31,
1999.
</FN>
</TABLE>
See accompanying notes.
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Capital Value Government Securities
Account Account
Year Year Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Operations
Net investment income.................................. $ 8,240,632 $ 6,985,872 $ 8,781,791 $ 7,217,758
Net realized gain (loss) from investment and
foreign currency transactions....................... 28,203,265 16,930,138 56,873 (13,992)
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... (53,910,054) 17,291,388 (9,257,079) 2,037,737
Net Increase (Decrease) in Net Assets
Resulting from Operations (17,466,157) 41,207,398 (418,415) 9,241,503
Dividends and Distributions to Shareholders
From net investment income............................. (8,380,269) (6,911,025) (8,912,447) (7,115,164)
Excess distribution of net investment income........... -- -- -- --
From net realized gain on investments and foreign
currency transactions............................... (32,879,252) (13,164,503) -- --
Excess distribution of net realized gains on
investments and foreign currency transactions....... (9,290,749) -- -- --
Tax return of capital distributions.................... (3,567) -- -- --
Total Dividends and Distributions (50,553,837) (20,075,528) (8,912,447) (7,115,164)
Capital Share Transactions (Note 5)
Shares sold............................................ 41,555,654 79,577,822 24,153,463 46,958,873
Shares issued in reinvestment of dividends
and distributions................................... 50,392,205 19,989,935 8,912,447 7,060,788
Shares redeemed........................................ (41,724,892) (20,207,043) (27,264,804) (9,151,234)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 50,222,967 79,360,714 5,801,106 44,868,427
Total Increase (Decrease) (17,797,027) 100,492,584 (3,529,756) 46,994,766
Net Assets
Beginning of year...................................... 385,723,793 285,231,209 141,317,226 94,322,460
End of year [including undistributed (overdistributed)
net investment income as set forth below]........... $367,926,766 $385,723,793 $137,787,470 $141,317,226
Undistributed (Overdistributed) Net Investment
Income.............................................. $ -- $ 151,505 $ 13,699 $ 156,200
</TABLE>
<TABLE>
<CAPTION>
Growth High Yield
Account Account
Year Year Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Operations
Net investment income.................................. $ 2,040,052 $ 2,637,397 $ 1,197,302 $ 1,269,488
Net realized gain (loss) from investment and
foreign currency transactions....................... 37,694,571 3,840,296 (593,513) (124,849)
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... 7,380,568 33,717,501 (350,732) (1,237,225)
Net Increase (Decrease) in Net Assets
Resulting from Operations 47,115,191 40,195,194 253,057 (92,586)
Dividends and Distributions to Shareholders
From net investment income............................. (2,019,736) (2,591,736) (1,222,012) (1,258,071)
Excess distribution of net investment income........... -- -- (48,020) --
From net realized gain on investments and foreign
currency transactions............................... (1,365,000) (2,466,719) -- --
Excess distribution of net realized gains on
investments and foreign currency transactions....... -- -- -- --
Tax return of capital distributions.................... -- -- -- --
Total Dividends and Distributions (3,384,736) (5,058,455) (1,270,032) (1,258,071)
Capital Share Transactions (Note 5)
Shares sold............................................ 55,919,566 62,174,313 375,171 538,125
Shares issued in reinvestment of dividends
and distributions................................... 3,365,051 5,025,050 1,270,031 1,258,071
Shares redeemed........................................ (16,961,092) (10,668,882) (993,134) (2,239,690)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 42,323,525 56,530,481 652,068 (443,494)
Total Increase (Decrease) 86,053,980 91,667,220 (364,907) (1,794,151)
Net Assets
Beginning of year...................................... 259,827,613 168,160,393 14,042,632 15,836,783
End of year [including undistributed (overdistributed)
net investment income as set forth below]........... $345,881,593 $259,827,613 $13,677,725 $14,042,632
Undistributed (Overdistributed) Net Investment
Income.............................................. $ 20,316 $ 45,662 $ (84,053) $ 24,710
</TABLE>
<TABLE>
<CAPTION>
International
Account
Year Year
Ended Ended
December 31, December 31,
1999 1998
<S> <C> <C>
Operations
Net investment income.................................. $ 5,217,374 $ 2,562,111
Net realized gain (loss) from investment and
foreign currency transactions....................... 12,581,615 8,234,283
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... 22,634,156 1,259,587
Net Increase (Decrease) in Net Assets
Resulting from Operations 40,433,145 12,055,981
Dividends and Distributions to Shareholders
From net investment income............................. (5,097,167) (2,463,498)
Excess distribution of net investment income........... -- --
From net realized gain on investments and foreign
currency transactions............................... (15,868,120) (5,106,126)
Excess distribution of net realized gains on
investments and foreign currency transactions....... (2,783,514) --
Tax return of capital distributions.................... -- --
Total Dividends and Distributions (23,748,801) (7,569,624)
Capital Share Transactions (Note 5)
Shares sold............................................ 17,339,054 27,355,505
Shares issued in reinvestment of dividends
and distributions................................... 23,563,847 7,505,035
Shares redeemed........................................ (13,939,684) (11,047,756)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 26,963,217 23,812,784
Total Increase (Decrease) 43,647,561 28,299,141
Net Assets
Beginning of year...................................... 153,587,915 125,288,774
End of year [including undistributed (overdistributed)
net investment income as set forth below]........... $197,235,476 $153,587,915
Undistributed (Overdistributed) Net Investment
Income.............................................. $ (68,786) $ 98,613
</TABLE>
See accompanying notes.
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
International SmallCap LargeCap Growth
Account Account
Year Period Period
Ended Ended Ended
December 31, December 31, December 31,
1999 1998(a) 1999(b)
<S> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ (58,771) $ 37,054 $ (15,019)
Net realized gain (loss) from investment and
foreign currency transactions....................... 4,970,503 (321,166) (212,486)
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... 11,523,072 (742,709) 1,923,860
Net Increase (Decrease) in Net Assets
Resulting from Operations 16,434,804 (1,026,821) 1,696,355
Dividends and Distributions to Shareholders
From net investment income............................. -- (35,645) --
From net realized gain on investments and foreign
currency transactions............................... (1,673,285) -- --
Total Dividends and Distributions (1,673,285) (35,645) --
Capital Share Transactions (Note 5)
Shares sold............................................ 12,265,656 14,424,171 5,359,054
Shares issued in reinvestment of dividends
and distributions................................... 940,385 10,645 --
Shares redeemed........................................ (1,002,938) (297,198) (10,778)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 12,203,103 14,137,618 5,348,276
Total Increase 26,964,622 13,075,152 7,044,631
Net Assets
Beginning of period.................................... 13,075,152 -- --
End of period (including undistributed net
investment income as set forth below)............... $40,039,774 $13,075,152 $7,044,631
Undistributed Net Investment Income.................... $ -- $ 1,409 $ --
<FN>
(a) Period from April 16, 1998 (date operations commenced) through December 31,
1998.
(b) Period from April 15, 1999 (date operations commenced) through
December 31, 1999.
(c) Period from April 9, 1998 (date operations commenced) through
December 31, 1998.
(d) Period from April 23, 1998 (date operations ommenced) through
December 31, 1998.
</FN>
</TABLE>
<TABLE>
<CAPTION>
MicroCap MidCap
Account Account
Year Period Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998(c) 1999 1998
<S> <C> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ 12,885 $ 23,660 $ 793,259 $ 1,551,489
Net realized gain (loss) from investment and
foreign currency transactions....................... (531,506) (282,071) 19,365,345 19,861,967
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... 432,502 (739,663) 9,954,987 (14,225,511)
Net Increase (Decrease) in Net Assets
Resulting from Operations (86,119) (998,074) 30,113,591 7,187,945
Dividends and Distributions to Shareholders
From net investment income............................. (9,327) (23,406) (800,858) (1,523,502)
From net realized gain on investments and foreign
currency transactions............................... -- -- (12,036,219) (14,343,647)
Total Dividends and Distributions (9,327) (23,406) (12,837,077) (15,867,149)
Capital Share Transactions (Note 5)
Shares sold............................................ 1,463,056 6,619,971 14,176,495 42,184,795
Shares issued in reinvestment of dividends
and distributions................................... 3,428 5,406 12,769,908 15,782,083
Shares redeemed........................................ (336,969) (220,298) (41,343,300) (14,447,105)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 1,129,515 6,405,079 (14,396,897) 43,519,773
Total Increase 1,034,069 5,383,599 2,879,617 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)............... $6,417,668 $5,383,599 $262,349,825 $259,470,208
Undistributed Net Investment Income.................... $ 3,558 $ 254 $ -- $ 54,439
<FN>
(a) Period from April 16, 1998 (date operations commenced) through December 31,
1998.
(b) Period from April 15, 1999 (date operations commenced) through
December 31, 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>
<TABLE>
<CAPTION>
MidCap Growth
Account
Year Period
Ended Ended
December 31, December 31,
1999 1998(d)
<S> <C> <C>
Operations
Net investment income (operating loss)................. $ 27,776 $ (2,778)
Net realized gain (loss) from investment and
foreign currency transactions....................... 731,050 (734,101)
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... 597,863 869,218
Net Increase (Decrease) in Net Assets
Resulting from Operations 1,356,689 132,339
Dividends and Distributions to Shareholders
From net investment income............................. (24,552) --
From net realized gain on investments and foreign
currency transactions............................... -- --
Total Dividends and Distributions (24,552) --
Capital Share Transactions (Note 5)
Shares sold............................................ 5,139,121 8,559,386
Shares issued in reinvestment of dividends
and distributions................................... 15,052 --
Shares redeemed........................................ (755,526) (158,214)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 4,398,647 8,401,172
Total Increase 5,730,784 8,533,511
Net Assets
Beginning of period.................................... 8,533,511 --
End of period (including undistributed net
investment income as set forth below)............... $14,264,295 $8,533,511
Undistributed Net Investment Income.................... $ 3,224 $ --
<FN>
(a) Period from April 16, 1998 (date operations commenced) through December 31,
1998.
(b) Period from April 15, 1999 (date operations commenced) through
December 31, 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>
See accompanying notes.
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
<TABLE>
<CAPTION>
MidCap Value Money Market
Account Account
Period Year Year
Ended Ended Ended
December 31, December 31, December 31,
1999(a) 1999 1998
<S> <C> <C> <C>
Operations
Net investment income.................................. $ 9,504 $ 4,231,004 $ 3,100,805
Net realized gain (loss) from investment transactions.. 502,244 -- --
Change in unrealized appreciation/depreciation
of investments ..................................... 187,469 -- --
Net Increase (Decrease) in Net Assets
Resulting from Operations 699,217 4,231,004 3,100,805
Dividends and Distributions to Shareholders
From net investment income............................. (9,504) (4,231,004) (3,100,805)
Excess distribution of net investment income........... (200) -- --
From net realized gain on investments.................. (116,388) -- --
Total Dividends and Distributions (126,092) (4,231,004) (3,100,805)
Capital Share Transactions (Note 5)
Shares sold............................................ 5,179,418 119,049,917 130,878,349
Shares issued in reinvestment of dividends
and distributions................................... 3,943 4,228,174 3,052,413
Shares redeemed........................................ (844) (85,617,203) (97,982,858)
Net Increase in Net Assets from
Capital Share Transactions 5,182,517 37,660,888 35,947,904
Total Increase (Decrease) 5,755,642 37,660,888 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)............... $5,755,642 $120,923,710 $ 83,262,822
Undistributed Net Investment Income.................... $ -- $ -- $ --
<FN>
(a) Period from April 22, 1999 (date operations commenced) through December 31,
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>
<TABLE>
<CAPTION>
Real Estate SmallCap
Account Account
Year Period Year Period
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998(b) 1999 1998(c)
<S> <C> <C> <C> <C>
Operations
Net investment income.................................. $ 545,284 $ 386,777 $ 8,236 $ 1,616
Net realized gain (loss) from investment transactions.. (1,459,133) (171,901) 4,522,953 (71,160)
Change in unrealized appreciation/depreciation
of investments ..................................... 390,875 (857,850) 2,652,903 (1,593,746)
Net Increase (Decrease) in Net Assets
Resulting from Operations (522,974) (642,974) 7,184,092 (1,663,290)
Dividends and Distributions to Shareholders
From net investment income............................. (571,628) (340,132) (8,617) (1,161)
Excess distribution of net investment income........... -- -- -- --
From net realized gain on investments.................. -- -- (2,243,300) --
Total Dividends and Distributions (571,628) (340,132) (2,251,917)
Capital Share Transactions (Note 5)
Shares sold............................................ 1,094,954 11,895,162 9,247,605 13,867,996
Shares issued in reinvestment of dividends
and distributions................................... 120,628 54,131 1,257,617 362
Shares redeemed........................................ (469,452) (57,431) (1,422,059) (109,602)
Net Increase in Net Assets from
Capital Share Transactions 746,130 11,891,862 9,083,163 13,758,756
Total Increase (Decrease) (348,472) 10,908,756 14,015,338 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)............... $10,560,284 $10,908,756 $26,109,643 $12,094,305
Undistributed Net Investment Income.................... $ 21,800 $ 46,645 $ 91 $ 455
<FN>
(a) Period from April 22, 1999 (date operations commenced) through December 31,
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>
See accompanying notes.
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
SmallCap Growth SmallCap Value
Account Account
Year Period Year Period
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998(a) 1999 1998(b)
<S> <C> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ (94,372) $ (30,249) $ 70,538 $ 29,302
Net realized gain (loss) from investment transactions.. 2,142,989 (739,178) 490,603 (499,000)
Change in unrealized appreciation/depreciation of
investments......................................... 12,830,588 1,311,277 1,306,560 (313,166)
Net Increase (Decrease) in Net Assets
Resulting from Operations 14,879,205 541,850 1,867,701 (782,864)
Dividends and Distributions to Shareholders
From net investment income............................. -- -- (70,821) (27,033)
From net realized gain on investments.................. (377,219) -- -- --
Total Dividends and Distributions (377,219) -- (70,821) (27,033)
Capital Share Transactions (Note 5)
Shares sold............................................ 17,228,800 8,080,818 2,845,395 7,875,091
Shares issued in reinvestment of dividends
and distributions................................... 279,819 -- 38,121 10,433
Shares redeemed........................................ (798,052) (160,040) (495,325) (180,241)
Net Increase in Net Assets from
Capital Share Transactions 16,710,567 7,920,778 2,388,191 7,705,283
Total Increase 31,212,553 8,462,628 4,185,071 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)............... $39,675,181 $8,462,628 $11,080,457 $6,895,386
Undistributed Net Investment Income.................... $ -- $ -- $ 1,583 $ 2,269
<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
December 31, 1999.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Stock Index 500 Utilities
Account Account
Period Year Period
Ended Ended Ended
December 31, December 31, December 31,
1999(c) 1999 1998(a)
<S> <C> <C> <C>
Operations
Net investment income (operating loss)................. $ 252,298 $ 632,538 $ 289,426
Net realized gain (loss) from investment transactions.. 381,179 539,988 (15,441)
Change in unrealized appreciation/depreciation of
investments......................................... 2,962,897 (571,384) 1,578,176
Net Increase (Decrease) in Net Assets
Resulting from Operations 3,596,374 601,142 1,852,161
Dividends and Distributions to Shareholders
From net investment income............................. (251,839) (631,032) (284,024)
From net realized gain on investments.................. (325,933) (137,455) --
Total Dividends and Distributions (577,772) (768,487) (284,024)
Capital Share Transactions (Note 5)
Shares sold............................................ 43,343,872 12,923,415 17,143,864
Shares issued in reinvestment of dividends
and distributions................................... 431,172 488,387 108,024
Shares redeemed........................................ (705,324) (858,385) (521,951)
Net Increase in Net Assets from
Capital Share Transactions 43,069,720 12,553,417 16,729,937
Total Increase 46,088,322 12,386,072 18,298,074
Net Assets
Beginning of period.................................... -- 18,298,074 --
End of period (including undistributed net
investment income as set forth below)............... $46,088,322 $30,684,146 $18,298,074
Undistributed Net Investment Income.................... $ 459 $ 1,506 $ 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
December 31, 1999.
</FN>
</TABLE>
See accompanying note.
NOTES TO FINANCIAL STATEMENTS
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
<TABLE>
<S> <C> <C>
Aggressive Growth Account High Yield Account Money Market Account
Asset Allocation Account International Account Real Estate Account
Balanced Account International SmallCap Account SmallCap Account
Blue Chip Account LargeCap Growth Account SmallCap Growth Account
Bond Account MicroCap Account SmallCap Value Account
Capital Value Account MidCap Account Stock Index 500 Account
Government Securities Account MidCap Growth Account Utilities Account
Growth Account MidCap Value Account
</TABLE>
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, 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 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. Material
reclassifications made for the Accounts were as follows:
Year Ended Periods Ended
December 31, 1999 December 31, 1998
Aggressive Growth Account $237,223 $ --
Asset Allocation Account 52,169 --
Growth Account 46,545 --
High Yield Account 159,175 66,211
International Account 54,062 61,967
International SmallCap Account 153,217 --
MidCap Account 63,183 --
SmallCap Growth Account 94,372 30,249
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.
At December 31, 1999, the following Accounts had approximate net capital loss
carryforwards as follows:
<TABLE>
<CAPTION>
Government
Net Capital Loss Blue Chip Bond Securities High Yield
Carryforwards Expire In: Account Account Account Account
<S> <C> <C> <C> <C> <C>
2000 $ -- $ -- $ -- $ 14,000
2001 -- -- -- 246,000
2002 -- -- 274,000 114,000
2003 -- -- 41,000 49,000
2004 -- -- -- --
2005 -- -- -- --
2006 -- -- 14,000 --
2007 32,000 414,000 -- 726,000
$32,000 $414,000 $329,000 $1,149,000
</TABLE>
<TABLE>
<CAPTION>
LargeCap MidCap SmallCap
Net Capital Loss Growth MicroCap Growth Real Estate Value
Carryforwards Expire In: Account Account Account Account Account
<S> <C> <C> <C> <C> <C> <C>
2006 $ -- $155,000 $3,000 $172,000 $8,000
2007 154,000 636,000 -- 745,000 --
$154,000 $791,000 $3,000 $917,000 $8,000
</TABLE>
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:
<TABLE>
Net Assets Value of Accounts
(in millions)
<CAPTION>
First Next Next Next Over
$100 $100 $100 $100 $400
<S> <C> <C> <C> <C> <C>
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
</TABLE>
<TABLE>
Net Assets Value of Accounts
(in millions)
<CAPTION>
First Next Next Next Over
$250 $250 $250 $250 $1,000
<S> <C> <C> <C> <C> <C>
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
</TABLE>
Overall Fee
Stock Index 500 Account .35%
At the November 2, 1999 shareholder meeting, a modified management fee schedule,
effective January 1, 2000, was approved for the following accounts:
<TABLE>
Net Assets Value of Accounts
(in millions)
<CAPTION>
First Next Next Next Over
$250 $250 $250 $250 $1,000
<S> <C> <C> <C> <C> <C>
Capital Value Account .60% .55% .50% .45% .40%
Growth Account .60 .55 .50 .45 .40
International Account .85 .80 .75 .70 .65
</TABLE>
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
December 31, 1999 Limit
LargeCap Growth Account $ 2,452 1.20%
MicroCap Account 13,239 1.06
MidCap Growth Account 14,359 .96
MidCap Value Account 2,400 1.20
SmallCap Growth Account 3,049 1.06
SmallCap Value Account 23,900 1.16
Stock Index 500 Account 15,995 .40
The Manager intends to continue its voluntary waiver and, if necessary, pay
expenses normally payable by the Accounts through December 31, 2000.
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:
<TABLE>
<CAPTION>
Periods Ended Periods Ended
December 31, 1999 December 31, 1998
<S> <C> <C>
Aggressive Growth Account $79,526 $64,877
Asset Allocation Account 16,160 23,297
Balanced Account 17,821 8,115
Blue Chip Account 5,010 N/A
Capital Value Account 61,919 8,995
Growth Account 40,281 14,714
International Account 95,413 52,568
International SmallCap Account 38,098 7,121
LargeCap Growth Account 701 N/A
MicroCap Account 3,481 3,594
MidCap Account 36,480 3,928
MidCap Growth Account 2,732 4,141
MidCap Value Account 12,572 N/A
Real Estate Account 9,240 6,955
SmallCap Account 3,430 640
SmallCap Growth Account 702 325
SmallCap Value Account 1,307 158
Stock Index 500 Account 23 N/A
Utilities Account 3,135 N/A
</TABLE>
All of the shares of the Fund are owned by Principal Life Insurance Company (an
affiliate of Princor Financial Services Corporation) and/or one or more separate
accounts sponsored by Principal Life Insurance Company.
Note 3 -- Management Agreement and Transactions With Affiliates
For the periods ended December 31, 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:
<TABLE>
<CAPTION>
Purchases Sales Purchases Sales
<S> <C> <C> <C> <C> <C>
Aggressive Growth Account $292,062,785 $248,168,016 LargeCap Growth Account $ 6,465,641 $ 1,344,232
Asset Allocation Account 64,655,536 55,759,290 MicroCap Account 6,173,300 4,777,399
Balanced Account 59,540,754 43,642,419 MidCap Account 191,490,556 208,549,188
Blue Chip Account 6,655,484 587,040 MidCap Growth Account 11,962,233 7,568,797
Bond Account 63,667,376 48,909,858 MidCap Value Account 9,635,827 4,958,954
Capital Value Account 180,767,946 169,492,190 Real Estate Account 11,660,310 10,784,753
Government Securities Account 26,249,752 23,162,185 SmallCap Account 25,159,130 18,604,390
Growth Account 241,612,594 194,736,941 SmallCap Growth Account 26,937,398 14,036,476
High Yield Account 11,686,915 11,606,573 SmallCap Value Account 8,988,191 7,201,139
International Account 115,085,543 104,985,853 Stock Index 500 Account 35,432,131 554,194
International SmallCap Account 56,564,624 48,083,082 Utilities Account 16,711,069 5,378,368
</TABLE>
At December 31, 1999, net unrealized appreciation (depreciation) of investments
by the Accounts was composed of the following:
<TABLE>
<CAPTION>
Net Unrealized
Appreciation
Gross Unrealized (Depreciation)
Appreciation (Depreciation) of Investments
<S> <C> <C> <C>
Aggressive Growth Account $ 114,214,155 $ (7,962,028) $ 106,252,127
Asset Allocation Account 17,867,089 (3,628,586) 14,238,503
Balanced Account 28,353,498 (16,255,668) 12,097,830
Blue Chip Account 701,670 (423,100) 278,570
Bond Account 302,671 (7,540,694) (7,238,023)
Capital Value Account 63,456,663 (25,142,743) 38,313,920
Government Securities Account 390,609 (3,891,673) (3,501,064)
Growth Account 90,172,375 (8,238,604) 81,933,771
High Yield Account 145,074 (1,298,617) (1,153,543)
International Account 48,224,691 (9,519,201) 38,705,490
International SmallCap Account 11,732,042 (951,001) 10,781,041
LargeCap Growth Account 2,016,342 (92,482) 1,923,860
MicroCap Account 681,955 (989,116) (307,161)
MidCap Account 65,832,134 (12,244,519) 53,587,615
MidCap Growth Account 2,627,645 (1,160,564) 1,467,081
MidCap Value Account 670,615 (483,146) 187,469
Real Estate Account 185,737 (652,712) (466,975)
SmallCap Account 4,156,948 (3,097,791) 1,059,157
SmallCap Growth Account 14,842,588 (700,723) 14,141,865
SmallCap Value Account 2,159,969 (1,166,575) 993,394
Stock Index 500 Account 5,557,456 (2,594,559) 2,962,897
Utilities Account 3,892,988 (2,886,196) 1,006,792
</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 December 31, 1999, there were no TBA purchase
or sell commitments outstanding.
At December 31, 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 December 31, 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 $ 499,540 0.56%
DSM NV Notes 5/6/99 198,894 193,640 0.22
Home Depot, Inc. Notes 9/21/99 299,796 294,105 0.33
Israel Electric Corp. Senior Notes 12/11/96 249,525 238,076 0.26
Liberty Mutual Surplus Notes 4/29/98 275,913 251,453 0.28
Monsanto Co. Notes 12/4/98 249,338 230,103 0.26
Prudential Insurance Co. Senior Notes 7/16/98 298,674 279,716 0.31
1,986,633 2.22
Bond Account AES Ironwood LLC Senior Secured Bonds 6/18/99 3,000,000 2,840,040 2.27
CE Generation LLC Senior Secured Notes 2/24/99 1,000,000 918,850 0.73
Central Vermont Public Service Corp.
Second Mortgage Bonds 7/21/99 1,998,300 1,934,226 1.55
Global Crossing Holdings Ltd. Senior Notes 11/12/99 2,452,950 2,471,875 1.98
International Game Technology Senior Notes 5/11/99 1,979,480 1,915,000 1.53
John Hancock Mutual Life Insurance Co.
Surplus Notes 1/8/97 958,440 924,353 0.74
Lear Corp. Senior Notes 5/14/99 989,850 962,748 0.77
Orix Credit Alliance Short-Term Notes 2/26/99 3,000,000 2,983,140 2.39
Osprey Trust/Osprey I, Inc.
Senior Secured Notes 9/16/99 3,500,000 3,475,245 2.78
Southern Energy, Inc. Senior Notes 7/21/99 2,000,000 1,935,638 1.54
20,361,115 16.28
High Yield Account Global Crossing Holdings Ltd.
Senior Notes 11/12/99 490,590 494,375 3.61
Lear Corp. Senior Notes 6/18/99 240,205 234,890 1.72
Mercury Financial Services Corp. Senior Notes 4/30/99 288,000 285,000 2.08
7/15/99 188,750 190,000 1.39
NEXTLINK Communications, Inc. Senior Notes 11/12/99 300,000 304,500 2.23
PSINet, Inc. Senior Notes 11/24/99 250,000 251,875 1.84
York Power Funding Ltd. Senior Secured Bonds 7/31/98 100,000 98,250 0.72
1,858,890 13.59
International SmallCap Neopost SA 2/23/99 74,736 190,400 0.48
Account 3/31/99 37,197 96,246 0.24
5/4/99 23,982 49,378 0.12
6/9/99 23,428 46,031 0.11
382,055 0.95
Utilities Account Liberty Media Group Convertible Bond 11/18/99 329,040 361,440 1.18
</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.
Transactions in Capital Shares by account were as follows:
<TABLE>
<CAPTION>
Aggressive Asset Allocation Balanced Blue Chip
Growth Account Account Account Account
Periods Ended December 31, 1999:
<S> <C> <C> <C> <C>
Shares sold................................... 3,425,846 636,822 1,878,284 629,250
Shares issued in reinvestment of
dividends and distributions.................. 1,026,476 603,334 1,005,031 997
Shares redeemed............................... (810,972) (1,296,076) (1,497,438) (8,548)
Net Increase (Decrease) 3,641,350 (55,920) 1,385,877 621,699
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
</TABLE>
<TABLE>
<CAPTION>
Bond Capital Government Growth
Account Value Account Securities Account Account
<S> <C> <C> <C> <C>
Year Ended December 31, 1999:
Shares sold................................... 1,888,601 1,114,820 2,222,644 2,609,763
Shares issued in reinvestment of
dividends and distributions.................. 798,658 1,633,995 868,448 153,620
Shares redeemed............................... (1,344,800) (1,153,770) (2,494,519) (782,721)
Net Increase 1,342,459 1,595,045 596,573 1,980,662
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
</TABLE>
<TABLE>
<CAPTION>
High Yield International International LargeCap
Account Account SmallCap Account Growth Account
<S> <C> <C> <C> <C>
Periods Ended December 31, 1999:
Shares sold................................... 46,183 1,134,348 974,795 532,362
Shares issued in reinvestment of
dividends and distributions.................. 170,703 1,554,312 60,281 --
Shares redeemed............................... (121,722) (910,209) (84,837) (1,046)
Net Increase 95,164 1,778,451 950,239 531,316
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
</TABLE>
<TABLE>
<CAPTION>
MicroCap MidCap MidCap MidCap Value
Account Account Growth Account Account
Periods Ended December 31, 1999:
<S> <C> <C> <C> <C>
Shares sold................................... 178,154 421,789 532,104 517,750
Shares issued in reinvestment of
dividends and distributions................. 447 374,173 1,477 371
Shares redeemed............................... (41,910) (1,235,799) (79,631) (88)
Net Increase (Decrease) 136,691 (439,837) 453,950 518,033
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
</TABLE>
<TABLE>
<CAPTION>
Money Real Estate SmallCap SmallCap
Market Account Account Account Growth Account
Year Ended December 31, 1999:
<S> <C> <C> <C> <C>
Shares sold................................... 119,049,917 122,880 981,514 1,237,096
Shares issued in reinvestment of
dividends and distributions.................. 4,228,174 15,099 123,420 15,004
Shares redeemed............................... (85,617,203) (53,710) (147,886) (61,655)
Net Increase 37,660,888 84,269 957,048 1,190,445
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
</TABLE>
<TABLE>
<CAPTION>
SmallCap Stock Index Utilities
Value Account 500 Account Account
Periods Ended December 31, 1999:
<S> <C> <C> <C>
Shares sold................................... 326,674 4,332,359 1,173,600
Shares issued in reinvestment of
dividends and distributions.................. 3,981 41,260 44,889
Shares redeemed............................... (55,528) (70,795) (78,185)
Net Increase 275,127 4,302,824 1,140,304
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>
The Accounts participate with other funds and portfolios managed by Principal
Management Corporation in an unsecured joint line of credit with two banks which
allow the accounts to borrow up to $75,000,000 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 .09% 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 December 31, 1999, the Accounts had no
outstanding borrowings under the line of credit.
Note 7 -- Futures Contracts
The Accounts (with the exception of Money Market Account) may enter into futures
contracts to fully expose the Fund to its investment strategy. 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 Statement of Assets and Liabilities. 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. Stock Index 500 Account recognized net realized
gains from futures contracts in the amount of $367,155 for the period ended
December 31, 1999. There were no other realized gains or losses related to
futures contracts for the periods ended December 31, 1999 and 1998.
Open Futures Contracts at December 31, 1999 were as follows:
<TABLE>
<CAPTION>
Opening Value at Net Unrealized
Number of Contract Market December 31, Appreciation/
Contracts Type Value 1999 (Depreciation)
<S> <C> <C> <C> <C> <C> <C>
Stock Index 500 Account 22 S&P 500 $7,937,488 $8,163,100 $225,612
March 2000 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 (97.39%)
Advertising (1.21%)
Omnicom Group 45,800 $ 4,580,000
Aircraft & Parts (5.56%)
General Dynamics 87,700 4,626,175
Textron, Inc. 49,600 3,803,700
United Technologies 194,300 12,629,500
21,059,375
Bakery Products (0.38%)
Keebler Foods Co. 50,900(a) 1,431,563
Beverages (0.86%)
Anheuser-Busch Cos., Inc. 46,100 3,267,337
Cable & Other Pay TV Services (3.94%)
Charter Communication Class A 64,000(a) 1,400,000
Comcast Corp. 112,900 5,673,225
Comcast Corp., Class A 20,000 957,500
MediaOne Group, Inc. 76,400(a) 5,868,475
TiVo, Inc. 16,800(a) 567,000
TV Guide, Inc., Class A 11,000(a) 473,000
14,939,200
Combination Utility Services (0.26%)
Montana Power Co. 27,400 988,113
Commercial Banks (1.17%)
Bank of New York Co., Inc 111,300 4,452,000
Communications Equipment (5.86%)
Ciena Corp. 34,400(a) 1,978,000
Juniper Networks, Inc. 3,500(a) 1,190,000
Lucent Technologies 62,600 4,683,262
Motorola, Inc. 75,600 11,132,100
Nortel Networks Corp. 32,100 3,242,100
22,225,462
Computer & Data Processing
Services (10.26%)
America Online, Inc. 70,400(a) 5,310,800
Inktomi Corp. 13,400(a) 1,189,250
Internet Capital Group 7,700(a) 1,309,000
Microsoft Corp. 170,300(a) 19,882,525
Novell, Inc. 31,300(a) 1,246,131
OpenTV Corp. 6,200(a) 497,550
Oracle Systems Corp. 23,150(a) 2,594,247
Sun Microsystems, Inc. 50,400(a) 3,902,850
Yahoo, Inc. 6,800(a) 2,942,275
38,874,628
Computer & Office Equipment (6.35%)
Cisco Systems 177,550(a) 19,020,044
Pitney Bowes, Inc. 91,300 4,410,931
VA Linux Systems, Inc. 3,100(a) 640,538
24,071,513
Consumer Products (0.38%)
Philip Morris Cos., Inc. 62,300 $ 1,444,581
Department Stores (1.47%)
Wal-Mart Stores, Inc. 80,500 5,564,562
Drugs (11.30%)
American Home Products Corp. 88,000 3,470,500
Amgen, Inc. 44,000(a) 2,642,750
Bristol-Myers Squibb Co. 125,100 8,029,856
Forest Laboratories, Inc. 13,200(a) 810,975
Johnson & Johnson 56,800 5,289,500
Eli Lilly & Co. 18,100 1,203,650
Merck & Co. 75,200 5,043,100
Pfizer, Inc. 194,200 6,299,362
Tularik, Inc. 6,400(a) 207,200
Warner-Lambert Co. 120,200 9,848,887
42,845,780
Eating & Drinking Places (0.20%)
Brinker International, Inc. 31,400(a) 753,600
Electronic Components &
Accessories (5.47%)
Cobalt Networks, Inc. 6,600(a) 715,275
Finisar Corp. 5,800(a) 521,275
Intel Corp. 131,100 10,791,169
Maxim Integrated Products 65,300(a) 3,081,344
Solectron Corp. 23,800(a) 2,263,975
Texas Instruments 34,600 3,351,875
20,724,913
Fire, Marine & Casualty
Insurance (0.63%)
American International Group, Inc. 22,200 2,400,375
General Industrial Machinery (5.10%)
Tyco International Ltd. 497,600 19,344,200
Grain Mill Products (0.40%)
Quaker Oats Co. 23,300 1,529,063
Groceries & Related Products (0.27%)
Safeway, Inc. 28,700(a) 1,020,644
Household Appliances (4.90%)
General Electric Co. 120,100 18,585,475
Industrial Inorganic Chemicals (0.21%)
Monsanto Co. 22,200 790,875
Jewelry, Silverware & Plated Ware (0.31%)
Tiffany & Co. 13,100 1,169,175
Lumber & Other Building
Materials (3.62%)
Home Depot, Inc. 200,100 13,719,356
Measuring & Controlling Devices (1.15%)
JDS Uniphase Corp. 24,200(a) 3,903,762
KLA-Tencor Corp. 4,200(a) 467,775
4,371,537
Medical Instruments & Supplies (0.47%)
Medtronic Inc. 49,300 $ 1,796,369
Motion Picture Production (4.24%)
AT&T Corp.- Liberty Media Group,
Class A 138,400(a) 7,854,200
Time Warner, Inc. 113,400 8,214,412
16,068,612
Motor Vehicles & Equipment (0.52%)
General Motors Corp., Class H 20,500(a) 1,968,000
Personal Credit Institutions (1.79%)
American Express Co. 40,800 6,783,000
Radio & Television Broadcasting (6.56%)
American Tower Corp., Class A 113,000(a) 3,453,563
AmFm, Inc. 63,100(a) 4,937,575
CBS Corp. 46,600(a) 2,979,487
Clear Channel Communications 151,200(a) 13,494,600
24,865,225
Real Estate Operators & Lessors (0.20%)
Pinnacle Holdings, Inc. 17,800(a) 754,275
Retail Stores, NEC (2.15%)
Costco Wholesale Corp. 89,300(a) 8,148,625
Savings Institutions (1.65%)
CitiGroup, Inc. 112,400 6,245,225
Search & Navigation Equipment (0.24%)
Litton Industries, Inc. 18,100(a) 902,738
Soap, Cleaners & Toilet Goods (1.71%)
Estee Lauder Co., Class A 8,800 443,850
Procter & Gamble Co. 55,100 6,036,894
6,480,744
Special Industry Machinery (1.30%)
Applied Materials, Inc. 38,900(a) 4,928,144
Telephone Communication (4.58%)
Bell Atlantic Corp. 90,900 5,596,031
BellSouth Corp. 11,800 552,388
IXnet, Inc. 52,300(a) 1,575,538
MCI Worldcom, Inc. 167,400(a) 8,882,662
SBC Communications, Inc. 15,100 736,125
17,342,744
Women's Accessory & Specialty
Stores (0.72%)
Intimate Brands, Inc. 63,525 2,739,516
Total Portfolio Investments (97.39%) 369,176,544
Cash and receivables, net of liabilities (2.61%) 9,885,774
Total Net Assets (100.00%) $379,062,318
(a) Non-income producing security - No dividend paid during the past twelve
months.
ASSET ALLOCATION ACCOUNT
Shares
Held Value
Common Stocks (60.71%)
Advertising (0.56%)
Omnicom Group, Inc. 2,400 $ 240,000
R.H. Donnelley Corp. 13,920(a) 262,740
502,740
Air Transportation, Scheduled (0.47%)
British Airways PLC ADR 1,400 90,125
Continental Airlines, Inc. 4,200(a) 186,375
KLM Royal Dutch Airlines 5,955 148,503
425,003
Aircraft & Parts (1.84%)
General Dynamics Corp. 6,700 353,425
Indigo Aviation ADR 7,300(a) 94,900
Textron, Inc. 2,600 199,388
United Technologies Corp. 15,400 1,001,000
1,648,713
Bakery Products (0.08%)
Keebler Foods Co. 2,600(a) 73,125
Beverages (0.31%)
Anheuser-Busch Cos., Inc. 2,400 170,100
Bass PLC ADR 8,928 105,462
275,562
Blast Furnace & Basic Steel
Products (0.10%)
Corus Group PLC 3,500 90,562
Business Credit Institutitions (0.04%)
First Sierra Financial, Inc. 2,100(a) 35,962
Cable & Other Pay TV Services (1.16%)
Charter Communication, Inc., Class A 3,300(a) 72,187
Comcast Corp. 8,300(a) 417,075
MediaOne Group, Inc. 5,900(a) 453,194
TCI Satellite Entertainment, Inc. 2,100(a) 33,600
TiVo, Inc. 1,200(a) 40,500
TV Guide, Inc., Class A 600(a) 25,800
1,042,356
Chemicals & Allied Products (1.05%)
Asahi Chemical Industry Co. ADR 4,100 210,298
Bayer AG Sponsored ADR 10,735 505,708
Mitsubishi Chemical Corp. ADR 6,100 214,547
Nova Chemicals Corp. 696 13,441
943,994
Combination Utility Services (0.46%)
Montana Power Co. 3,600 129,825
NiSource, Inc. 15,700 280,638
410,463
Commercial Banks (4.13%)
ABN-AMRO Holdings NV ADR 21,405 541,814
Allied Irish Banks ADR 8,700 183,787
Banco Santander Central Hispano 23,400 273,488
Bank of New York Co., Inc. 8,800 352,000
Barclays PLC ADR 5,571 641,361
Chase Manhattan Corp. 4,580 355,809
Commerzbank AG ADR 3,600 131,522
Fleet Boston Financial Corp. 10,090 351,258
HSBC Holdings PLC 3,600 256,950
Mellon Financial Corp. 2,900 $ 98,781
National Westminster ADR 1,900 245,575
PNC Financial Corp. 2,400 106,800
Westpac Banking ADR 4,900 168,438
3,707,583
Commercial Printing (0.20%)
DAI Nippon Printing Co. 1,100 175,175
Commercial Sports (0.07%)
Championship Auto Racing 2,900(a) 66,700
Communications Equipment (5.24%)
Advanced Fibre Communication 2,300(a) 102,781
Alcatel ADR 4,700 211,500
Associated Group, Inc., Class B 2,200(a) 202,400
Ciena Corp. 1,800(a) 103,500
Commscope, Inc. 1,400(a) 56,438
CTC Communications Group 1,700(a) 66,327
Efficient Networks, Inc. 500(a) 34,000
Harmonic, Inc. 1,200(a) 113,925
Harris Corp. 3,900 104,081
IPC Information Systems, Inc. 2,000(a) 142,000
Juniper Networks, Inc. 200(a) 68,000
Koninklijke Philips Electronic 8,987 1,213,245
Lucent Technologies, Inc. 3,200 239,400
Matsushita Electric ADR 800 223,200
Millicom International Cellular SA 300(a) 18,712
Motorola, Inc. 3,900 574,275
Newbridge Networks Corp. 17,000(a) 383,563
Nortel Networks Corp. 1,700 171,700
Powerwave Technologies, Inc. 800(a) 46,700
Proxim, Inc. 1,300(a) 143,000
RF Micro Devices, Inc. 3,200(a) 219,000
SBA Communications Corp. 9,900(a) 185,625
Terayon Communication, Inc. 1,300(a) 81,656
4,705,028
Communications Services (0.14%)
Bell Canada International 1,200(a) 27,225
L-3 Communications Holdings, Inc. 1,400(a) 58,275
Microcell Telecommunications 1,100(a) 36,163
121,663
Computer & Data Processing
Services (3.43%)
3COM Corp. 1,900(a) 89,300
Allaire Corp. 600(a) 87,000
America Online, Inc. 3,700(a) 279,119
Audiocodes Ltd. 1,500(a) 138,000
Espeed, Inc., Class A 200(a) 7,112
Informatica Corp. 1,000(a) 106,375
Inktomi Corp. 600(a) 53,250
Internet Capital Group, Inc. 400(a) 68,000
Micromuse, Inc. 1,000(a) 170,000
Microsoft Corp. 8,800(a) 1,027,400
Netiq Corp. 200(a) 10,413
Network Plus Corp. 1,800(a) 37,800
Novell, Inc. 1,600(a) 63,700
OpenTV Corp. 300(a) 24,075
Oracle Systems Corp. 1,200(a) 134,475
QRS Corp. 300(a) $ 31,500
Saga Systems, Inc. 13,300(a) 265,169
Sun Microsystems, Inc. 2,600(a) 201,337
Verio, Inc. 800(a) 36,950
Visio Corp. 1,600(a) 76,000
Yahoo, Inc. 400(a) 173,075
3,080,050
Computer & Office Equipment (2.08%)
Cirrus Logic, Inc. 2,000(a) 26,625
Cisco Systems, Inc. 9,200(a) 985,550
Hitachi Ltd. ADR 2,900 469,437
Pitney Bowes, Inc. 4,700 227,069
Sandisk Corp. 1,200(a) 115,500
VA Linux Systems, Inc. 200(a) 41,325
1,865,506
Concrete Work (0.08%)
Pioneer International Ltd. ADR 25,000 75,085
Concrete, Gypsum & Plaster
Products (0.17%)
Italcementi Fabriche SPA ADR 13,000 156,360
Consumer Products (0.11%)
Philip Morris Cos., Inc. 4,250 98,547
Crude Petroleum & Natural Gas (0.06%)
USX-Marathon Group, Inc. 2,300 56,781
Department Stores (0.42%)
Marui Corp. ADR 2,800 83,490
Wal-Mart Stores, Inc. 4,200 290,325
373,815
Drugs (3.46%)
American Home Products Corp. 6,800 268,175
Amgen, Inc. 2,300(a) 138,144
Bristol-Myers Squibb Co. 6,500 417,219
Forest Laboratories, Inc. 700(a) 43,006
Johnson & Johnson 2,900 270,063
Lilly (Eli) & Co. 900 59,850
Merck & Co., Inc. 3,900 261,544
Novartis AG Sponsored ADR 2,879 210,251
Novo Nordisk ADR 3,200 206,800
Nycomed Amersham PLC ADR 8,569 252,250
Pfizer, Inc. 10,100 327,619
Smithkline Beecham PLC ADR 2,200 141,763
Warner-Lambert Co. 6,200 508,012
3,104,696
Eating & Drinking Places (0.40%)
Brinker International, Inc. 1,700(a) 40,800
Jack In The Box, Inc. 4,100(a) 84,819
P.F. Chang's China Bistro, Inc. 3,300(a) 82,088
Papa John's International, Inc . 2,500(a) 65,156
Sonic Corp. 2,900(a) 82,650
355,513
Electric Services (0.51%)
Endesa SA ADR 5,600 113,050
EVN AG ADR 3,600 108,249
National Power ADR 3,422 73,573
New Century Energies, Inc. 2,400 72,900
Pinnacle West Capital Corp. 1,800 55,013
Shandong Huaneng Power
Development Ltd. ADR 8,000 34,500
457,285
Electrical Goods (0.17%)
CBS Corp. 2,400(a) $ 153,450
Electronic Components &
Accessories (2.70%)
ASM International NV 1,700(a) 39,100
Cobalt Networks, Inc. 300(a) 32,513
Dionex Corp. 1,400(a) 57,662
Finisar Corp. 300(a) 26,962
Intel Corp. 6,800 559,725
Kyocera Corp. ADR 3,000 786,000
Lattice Semiconductor Corp. 500(a) 23,563
Maker Communications, Inc. 1,700(a) 72,675
Maxim Integrated Products, Inc. 3,400(a) 160,437
Micrel, Inc. 1,000(a) 56,938
Qlogic Corp. 200(a) 31,975
SDL, Inc. 600(a) 130,800
Solectron Corp. 1,200(a) 114,150
Texas Instruments 1,800 174,375
Transwitch Corp. 2,100(a) 152,381
2,419,256
Electronic Distribution Equipment (1.07%)
General Electric Co. 6,200 959,450
Family Clothing Stores (0.36%)
TJX Cos., Inc. 15,600 318,825
Federal & Federally Sponsored
Credit (0.20%)
Federal National Mortgage Association 2,900 181,069
Finance Services (0.40%)
Nomura Securities Co. Ltd. ADR 2,000 360,510
Fire, Marine & Casualty
Insurance (1.04%)
Allstate Corp. 12,300 295,200
American International Group, Inc. 1,200 129,750
Loews Corp. 2,900 175,994
St. Paul Cos., Inc. 1,900 64,006
Tokio Marine & Fire Insurance ADR 4,600 271,975
936,925
Fish Hatcheries & Preserves (0.03%)
Tularik, Inc. 900(a) 29,137
Footwear, Except Rubber (0.49%)
Olivetti & Co. SPA ADR 153,968 443,674
Freight Transportation
Arrangement (0.14%)
C. H. Robinson Worldwide, Inc. 3,100 123,225
Furniture & Home Furnishings (0.12%)
Linens `N Things, Inc. 1,500(a) 44,438
Tuesday Morning Corp. 3,400(a) 62,687
107,125
General Industrial Machinery (1.68%)
Amergroup Ltd. ADR 5,500 55,540
Applied Science & Technology 2,100(a) 69,792
SKF AB ADR 15,370 380,408
Tyco International Ltd. 25,800 1,002,975
1,508,715
Grain Mill Products (0.09%)
Quaker Oats Co. 1,200 78,750
Groceries & Related Products (0.06%)
Safeway, Inc. 1,500(a) $ 53,344
Guided Missiles, Space Vehicles &
Parts (0.36%)
Cordant Technologies, Inc. 9,800 323,400
Hotels & Motels (0.23%)
Four Seasons Hotel, Inc. 1,100 58,575
Hilton Group PLC 18,500 116,433
Host Marriott Corp. 2,239 18,472
Interstate Hotels Corp. 110 358
John Q. Hammons Hotels, Inc. 3,200(a) 12,400
206,238
Household Audio & Video
Equipment (0.83%)
C-COR.net Corp. 400(a) 30,650
Sony Corp. ADR 2,500 711,875
742,525
Industrial Inorganic Chemicals (0.73%)
Akzo ADR 8,566 426,159
ICN Pharmaceuticals, Inc. 1,600 40,500
Monsanto Co. 1,100 39,187
USEC, Inc. 21,400 149,800
655,646
Jewelry, Silverware & Plated Ware (0.07%)
Tiffany & Co. 700 62,475
Life Insurance (0.74%)
American General Corp. 3,300 250,388
Lincoln National Corp. 7,800 312,000
Reinsurance Group of America, Inc. 3,600 99,900
662,288
Lumber & Other Building
Materials (0.79%)
Home Depot, Inc. 10,350 709,622
Measuring & Controlling Devices (0.39%)
Credence Systems Corp. 800(a) 69,200
JDS Uniphase Corp. 1,200(a) 193,575
KLA-Tencor Corp. 200(a) 22,275
Molecular Devices Corp. 1,200(a) 62,400
347,450
Meat Products (0.56%)
Groupe Danone 10,764 501,199
Medical Instruments & Supplies (0.16%)
Medtronic, Inc. 2,600 94,738
Techne Corp. 900(a) 49,556
144,294
Medical Services & Health
Insurance (0.05%)
Torchmark Corp. 1,400 40,687
Metalworking Machinery (0.12%)
Makita Corp. ADR 13,000 112,125
Miscellaneous Amusement, Recreation
Service (0.13%)
Cedar Fair, L.P. 5,900 114,312
Miscellaneous Chemical Products (0.12%)
Millenium Chemicals, Inc. 5,500 108,625
Miscellaneous Electrical Equipment &
Supplies (0.42%)
TDK Corp. ADR 2,800 $ 378,875
Miscellaneous Food & Kindred
Products (0.20%)
Nestle Reg. ADR 2,000 182,229
Miscellaneous Investing (1.96%)
Amli Residential Properties Trust 900 18,169
Archstone Communities Trust 1,852 37,966
Avalonbay Community, Inc. 4,100 140,681
Boston Properties, Inc. 2,000 62,250
Brandywine Realty Trust 1,400 22,925
Burnham Pacific Properties, Inc. 11,100 104,062
Carramerica Realty Corp. 2,800 59,150
Charles E. Smith Residential Realty, Inc. 2,300 81,363
Chateau Properties 3,453 89,562
EastGroup Properties, Inc. 300 5,550
Equity Office Properties Trust 5,219 128,518
Equity Residential Properties Trust 600 25,613
Essex Property Trust, Inc. 2,000 68,000
Federal Realty Investment Trust 800 15,050
Great Lakes REIT, Inc. 5,800 83,375
Manufactured Homes Communities, Inc. 1,400 34,037
Pan Pacific Retail Properties, Inc. 1,500 24,469
Philips International Realty Corp. 200 3,287
Prime Group Realty Trust, Inc. 9,200 139,725
Prologis Trust 1,640 31,570
PS Business Parks, Inc. 200 4,550
Public Storage, Inc. 4,176 94,743
Ramco-Gershenson Properties 100 1,263
Regency Realty Corp. 100 2,000
Rouse Co. 1,600 34,000
Simon Property Group, Inc. 1,500 34,406
Starwood Hotels & Resorts Worldwide 6,430 151,105
Taubman Centers, Inc. 8,000 86,000
Urban Shopping Centers, Inc. 1,300 35,262
Vornado Realty Trust 2,000 65,000
Wellsford Real Properties, Inc. 7,777(a) 66,105
Wyndham International, Class A 2,910(a) 8,548
1,758,304
Miscellaneous Manufacturers (0.04%)
Blyth Industries, Inc. 1,300(a) 31,931
Mortgage Bankers & Brokers (0.12%)
Countrywide Credit Industries, Inc. 4,400 111,100
Motion Picture Distribution &
Services (0.13%)
Four Media Company 7,900(a) 117,512
Motion Picture Production &
Services (0.93%)
AT&T Corp.- Liberty Media, Class A 7,200 408,600
Time Warner, Inc. 5,900 427,381
835,981
Motor Vehicles & Equipment (1.86%)
Fiat SP ADR 2,585 $ 77,873
General Motors Corp. 2,100 152,644
General Motors Corp., Class H 1,100(a) 105,600
Meritor Automotive, Inc. 17,366 336,466
Toyota Motor Corp. ADR 8,600 837,425
Volkswagen AG ADR 14,000 157,021
1,667,029
Motorcycles, Bicycles & Parts (0.04%)
Ducati Motor Holding ADR 1,500(a) 37,969
Non-Classifiable Establishments (0.03%)
Keppel Corp. Ltd. ADR 5,375 28,133
Non-Store Retailers (0.05%)
Valuevision International, Inc., Class A 800(a) 45,850
Opthalmic Goods (0.26%)
Bausch & Lomb, Inc. 2,650 181,359
Cooper Cos., Inc. 1,600 48,200
229,559
Periodicals (0.01%)
Martha Stewart Living Omnimedia, Inc. 500(a) 12,000
Personal Credit Institutions (0.39%)
American Express Co. 2,100 349,125
Petroleum Refining (0.75%)
BP Amoco PLC 1,400 83,037
Conoco, Inc., Class A 8,600 212,850
Total Fina SA ADR 5,410 374,643
670,530
Photographic Equipment &
Supplies (0.56%)
Eastman Kodak Co. 900 59,625
Fuji Photo Film 8,800 336,600
Lanier Worldwide, Inc. 3,900(a) 15,113
OCE NV 5,600 92,400
503,738
Plumbing & Heating, Except
Electric (0.02%)
Masco Corp. 600 15,225
Producers, Orchestras &
Entertainers (0.17%)
Westwood One, Inc. 2,000(a) 152,000
Radio & Television Broadcasting (2.16%)
Acme Communications, Inc. 2,400(a) 79,800
American Tower Corp., Class A 13,500(a) 412,594
AmFm, Inc. 3,400(a) 266,050
Citadel Communications Corp. 300(a) 19,462
Clear Channel Communications 7,800(a) 696,150
Cumulus Media, Inc. 900(a) 45,675
Emmis Communications Corp. 600(a) 74,784
Pegasus Communications 1,700(a) 166,175
Price Communications Corp. 800(a) 22,250
Radio One, Inc. 500(a) 46,000
Radio Unica Communications 1,100(a) 31,763
Spanish Broadcasting System, Inc. 600(a) 24,150
Young Broadcasting, Inc., Class A 1,100(a) 56,100
1,940,953
Radio, Television & Computer
Stores (0.07%)
Intertan, Inc. 2,300(a) $ 60,088
Railroads (0.09%)
Nagoya Railroad Co. Ltd. 2,900 84,715
Real Estate Agents & Managers (0.00%)
Atlantic Gulf Communities Co. 15,700(a) 785
Real Estate Operators & Lessors (0.90%)
Arden Realty Group, Inc. 4,800 96,300
Brookfield Properties Corp. 6,600 69,300
Pacific Gulf Properties 4,200 85,050
Pinnacle Holdings, Inc. 7,600 322,050
Sekisui House Ltd. ADR 2,300 203,361
Trizec Hahn Corp. 1,600 27,000
803,061
Research & Testing Services (0.40%)
Corporate Executive Board Co. 6,400(a) 357,600
Retail Stores (0.47%)
Costco Wholesale Corp. 4,600(a) 419,750
Savings Institutions (0.36%)
Citigroup, Inc. 5,800 322,262
Search & Navigation Equipment (0.21%)
Litton Industries, Inc. 3,700(a) 184,537
Security & Commodity Services (0.14%)
Pimco Advisors Holdings L.P. 3,400 128,137
Soap, Cleaners & Toilet Goods (1.26%)
Estee Lauder Co., Class A 500 25,219
KAO Corp. ADR 2,200 626,545
Procter & Gamble 2,900 317,731
Shiseido Co. Ltd. ADR 11,000 160,129
1,129,624
Special Industry Machinery (0.31%)
Applied Materials, Inc. 2,000(a) 253,375
Asyst Technologies, Inc. 400(a) 26,225
279,600
Telephone Communication (5.17%)
Advanced Radio Telecom Corp. 1,300(a) 31,200
Airgate PCS, Inc. 500(a) 26,375
AT&T Corp. 4,946(a) 251,009
BCE, Inc. 11,180 1,008,296
Bell Atlantic Corp. 9,500 584,844
BellSouth Corp. 2,000 93,625
CFW Communications Co. 5,300 184,175
Clearnet Communications, Inc. 800(a) 27,500
Commonwealth Telephone Enterprises, Inc. 700(a) 37,012
Corecomm Ltd. 1,850(a) 109,844
Deltathree.com, Inc. 700(a) 18,025
Ixnet, Inc. 9,000(a) 271,125
MCI Worldcom, Inc. 11,700(a) 620,831
Nuevo Grupo Iusacell SA De CV 2,900(a) 43,319
Rural Cellular Corp. 700(a) 63,350
SBC Communications, Inc. 800 39,000
Sprint Corp. 5,600 $ 376,950
Telefonica SA Sponsored ADR 7,959(a) 627,269
Telesp Cellular Parti ADR 3,000 127,125
U.S. West, Inc. 1,300 93,600
4,634,474
Tires & Inner Tubes (0.27%)
Bridgestone ADR 1,100 241,805
Water Transportation of Freight (0.31%)
Pennisular & Oriental Steamships ADR 5,850 193,850
American Classic Voyages Co. 2,300(a) 80,500
274,350
Women's Accessory & Specialty
Stores (0.16%)
Intimate Brands, Inc. 3,320 143,175
Women's Clothing Stores (0.09%)
David's Bridal, Inc. 7,300(a) 81,669
Total Common Stocks 54,466,283
Preferred Stocks (0.09%)
Newspapers (0.06%)
News Corp. Ltd. ADR 1,500 50,156
Real Estate Agents & Managers (0.03%)
Atlantic Gulf Communities Corp. 4,809(a) 26,450
Telephone Communications (0.00%)
Telecommunicacoes Brasil SA ADR 8,800(a) 196
Total Preferred Stocks 76,802
Principal
Amount Value
Bonds (19.62%)
Aircraft & Parts (0.55%)
Textron, Inc. Bonds;
6.75%; 9/15/2002 $ 500,000 $ 494,644
Chemical & Allied Products (0.22%)
DSM NV Notes; 6.25%; 5/15/2004 200,000(b) 193,640
Commercial Banks (1.67%)
Asian Development Bank Global
Bonds; 5.75%; 5/19/2003 500,000 483,349
Bank of America Corp. Senior
Notes; 5.88%; 2/15/2009 500,000 445,354
First Union - Lehman Brothers
Commercial, Class 2 A1;
6.48%; 3/18/2004 236,699 232,994
Merrill Lynch & Co. Notes;
6.00%; 2/12/2003 350,000 338,965
1,500,662
Communications Services, NEC (0.55%)
AT&T Corp. Notes;
6.50%; 9/15/2002 500,000 494,246
Department Stores (0.55%)
Wal-Mart Stores, Inc. Bonds;
6.55%; 8/10/2004 $ 500,000 $ 491,724
Drugs (0.54%)
Johnson & Johnson Bonds;
6.55%; 9/1/2009 500,000 480,985
Electrical Goods (0.26%)
Empresa Nacional Electric Yankee Notes;
7.75%; 7/15/2008 250,000 236,597
Electrical Repair Shops (0.48%)
Merrill Lynch Mortgage Investors, Inc.
Class A1, Series 1997-C1
6.95%; 6/18/2029 430,233 427,639
Electronic Distribution
Equipment (0.26%)
Israel Electric Corp. Senior Notes;
7.25%; 12/15/2006 250,000(b) 238,076
Federal & Federally Sponsored
Credit (0.55%)
Federal Home Loan Mortgage Corp.
Notes; 6.25%; 10/15/2002 500,000 494,832
Finance Services (0.99%)
Norwest Financial, Inc. Notes;
6.70%; 9/22/2004 350,000 342,665
Team Fleet Finance Corp. Notes;
7.35%; 5/15/2003 250,000 247,443
Textron Financial Corp. Global Bonds;
7.13%; 12/9/2004 300,000 296,388
886,496
Fire, Marine & Casualty
Insurance (0.31%)
Prudential Insurance Co. Senior Notes;
6.38%; 7/23/2006 300,000(b) 279,716
Gas Production & Distribution (0.39%)
El Paso Energy Corp. Senior Notes;
6.63%; 7/15/2001 350,000 346,458
General Government, NEC (0.23%)
State of Qatar Bonds;
9.50%; 5/21/2009 200,000 211,391
Household Audio & Video
Equipment (0.27%)
Sony Corp. Notes;
6.13%; 3/4/2003 250,000 244,352
Industrial Inorganic Chemicals (0.26%)
Monsanto Co. Notes;
5.75%; 12/1/2005 250,000(b) 230,103
Life Insurance (0.28%)
Liberty Mutual Surplus Notes;
8.20%; 5/4/2007 $ 250,000(b) $ 251,453
Lumber & Other Building
Materials (0.33%)
Home Depot, Inc. Notes;
6.50%; 9/15/2004 300,000(b) 294,105
Miscellaneous Equipment Rental &
Leasing (0.23%)
Oil Enterprises Ltd. Global Bonds;
6.24%; 6/30/2008 223,308 209,494
Miscellaneous Investing (0.26%)
Simon Debartolo Medium-Term
Notes; 7.13%; 9/20/2007 250,000 230,035
Mortgage Bankers & Brokers (0.28%)
Abbey National PLC Yankee Bonds;
7.95%; 10/26/2029 250,000 249,614
Motor Vehicles, Parts & Supplies (0.28%)
Mid-State Trust Pass-Through Series 4,
Class A; 8.33%; 4/1/2030 243,409 249,171
Motor Vehicles & Equipment (0.68%)
Delphi Auto Systems Corp. Debentures;
7.13%; 5/1/2029 300,000 264,878
General Motors Acceptance Corp.
Senior Unsubordinated Global
Notes; 6.75%; 2/7/2002 350,000 347,800
612,678
Ordinance & Accessories, NEC (0.17%)
Lockheed Martin Corp. Notes;
7.95%; 12/1/2005 150,000 148,884
Paints & Allied Products (0.33%)
Rohm & Haas Co. Notes;
6.95%; 7/15/2004 300,000 296,554
Personal Credit Institutions (4.94%)
American General Finance Corp. Senior
Notes; 6.75%; 11/15/2004 350,000 341,174
Associates Corp. Global Notes;
5.80%; 4/20/2004 350,000 331,529
BMW Vehicle Owner Trust Asset Backed
Bond, Series 99-A; Class A3;
6.41%; 4/25/2003 1,000,000 994,590
DaimlerChrysler NA Holdings
Notes; 7.20%; 9/1/2009 350,000 343,632
First USA Credit Card Master Trust
Series 1997-6, Class A;
6.42%; 3/17/2005 550,000 544,803
Ford Motor Credit Notes;
6.13%; 4/28/2003 250,000 242,465
General Electric Capital Corp. Bonds;
6.81%; 11/3/2003 500,000 496,751
General Motors Acceptance Corp.
Global Notes; 6.85%; 6/17/2004 300,000 295,018
Honda Auto Lease Trust, Series 1999-A,
Class A4, Asset Backed;
6.45%; 9/16/2002 500,000 498,125
Household Finance Corp. Notes;
7.00%; 8/1/2003 350,000 346,255
4,434,342
Petroleum Refining (0.37%)
Conoco, Inc. Senior Notes;
5.90%; 4/15/2004 $ 350,000 $ 333,718
Savings Institutions (0.37%)
Citigroup, Inc. Global Senior Notes;
5.80%; 3/15/2004 350,000 332,745
Securities Brokers & Dealers (1.13%)
CNA Financial Notes;
6.50%; 4/15/2005 250,000 234,452
Donaldson, Lufkin & Jenrette
Medium-Term Notes;
6.90%; 10/1/2007 250,000 236,575
Lehman Brothers Holdings, Inc.
Global Notes; 6.63%; 4/1/2004 250,000 242,188
Salomon, Inc. Senior Notes;
7.30%; 5/15/2002 300,000 301,836
1,015,051
Soap, Cleaners & Toilet Goods (0.44%)
Procter & Gamble Co. Global Bonds;
6.60%; 12/15/2004 400,000 394,417
Telephone Communication (0.89%)
AT&T Corp. Global Notes;
6.50%; 3/15/2029 250,000 214,039
AT&T Canada, Inc. Bonds;
7.65%; 9/15/2006 250,000 248,909
Worldcom, Inc. Senior Notes;
6.40%; 8/15/2005 350,000 336,259
799,207
Collateralized Mortgage
Obligations (0.56%)
AESOP Funding II LLC, Class A1,
Series 1997-1; 6.22%; 10/20/2001 500,000(b) 499,540
Total Bonds 17,602,569
Asset-Backed Securities (4.53%)
Business Credit Institutions (0.52%)
Ford Credit Auto Owner Trust
Asset-Backed Series 1998-B,
Class A3; 5.85%; 10/15/2001 471,105 470,248
Electric Services (0.52%)
Peso Energy Transition Trust
Asset-Backed Fixed Rate;
6.05%; 3/1/2009 500,000 466,990
Personal Credit Institutions (2.20%)
American Express Credit Account Master
Trust Asset-Backed Bonds,
Series 1997-1, Class A;
6.40%; 4/15/2005 500,000 494,640
Chemical Master Credit Card Trust
Series 1995-3, Class A,
6.23%; 4/15/2005 500,000 492,810
Citibank Credit Card Master Trust I
Asset Backed Bonds, Series 1997-7,
Class A; 6.65%; 11/15/2006 500,000 491,200
Premier Auto Trust Asset-Backed Bonds,
Series 1999-3, Class A3;
6.27%; 4/8/2003 500,000 496,195
1,974,845
Collateralized Mortgage
Obligations (0.76%)
Chase Manhattan Corp. Mortgage
Pass-Through Certificates;
6.00%; 2/15/2009 $ 250,000 $ 224,861
GMAC Commercial Mortgage Securities,
Inc., Series 1997-C2, Class A1;
6.45%; 12/15/2004 474,467 455,569
680,430
Mortgage Pass-Through Securities (0.53%)
Lehman Large Loan, Series 1997-LLI,
Class A1; 6.79%; 6/12/2004 474,575 470,697
Total Asset-Backed Securities 4,063,210
U.S. Government Treasury Notes & Bonds (3.05%)
5.63%; 5/15/2008 1,000,000 940,625
6.50%; 8/15/2005 500,000 500,000
7.25%; 8/15/2004 700,000 722,312
8.13%; 8/15/2019 500,000 569,688
Total U.S. Government Treasury Notes & Bonds 2,732,625
Principal
Type Rate Maturity Amount Value
Federal National Mortgage Association
(FNMA) Certificates (3.56%)
FNMA 5.50% 1/1/2014-5/1/2014 $2,361,825 $2,192,886
FNMA 6.00% 4/1/2013 814,363 773,873
FNMA 8.00% 2/1/2012 220,347 225,091
Total FNMA Certificates 3,191,850
Federal Home Loan Mortgage Corporation
(FHLMC) Certificates (2.95%)
FHLMC 6.00% 12/1/2013-4/1/2028 2,813,226 2,645,306
Government National Mortgage Association
(GNMA) Certificates (2.18%)
GNMA 7.00% 9/15/2014 1,978,669 1,958,470
Total Portfolio Investments (96.69%) 86,737,115
Cash and receivables, net of liabilities (3.31%) 2,973,446
Total Net Assets $89,710,561
(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 (56.58%)
Auto & Home Supply Stores (0.86%)
Autozone, Inc. 55,700(a) $ 1,799,806
Bakery Products (0.94%)
Sara Lee Corp. 89,100 1,965,769
Beverages (1.19%)
PepsiCo, Inc. 71,000 2,502,750
Cable & Other Pay TV Services (0.59%)
MediaOne Group, Inc. 16,000(a) 1,229,000
Chemicals & Allied Products (0.47%)
Dow Chemical Co. 7,300 975,463
Commercial Banks (3.46%)
Bank of America Corp. 29,700 1,490,569
Chase Manhattan Corp. 15,300 1,188,619
First Union Corp. 26,908 882,919
FleetBoston Financial Corp. 27,241 948,327
PNC Financial Corp. 18,500 823,250
Wells Fargo Co. 47,700 1,928,868
7,262,552
Commercial Printing (0.36%)
R.R. Donnelley & Sons Co. 30,700 761,744
Communications Equipment (2.62%)
General Instrument Corp. 30,300(a) 2,575,500
Motorola, Inc. 19,800 2,915,550
5,491,050
Computer & Data Processing
Services (3.44%)
3COM Corp. 32,200(a) 1,513,400
Electronic Data Systems Corp. 33,100 2,215,632
First Data Corp. 41,600 2,051,400
Sterling Commerce, Inc. 24,500(a) 834,531
Unisys Corp. 18,700(a) 597,231
7,212,194
Computer & Office Equipment (3.77%)
Cabletron Systems, Inc. 55,000(a) 1,430,000
Compaq Computer Corp. 76,200 2,062,162
Hewlett-Packard Co. 20,500 2,335,719
International Business Machines Corp. 19,200 2,073,600
7,901,481
Consumer Products (1.70%)
Fortune Brands, Inc. 36,600 1,210,087
Nabisco Group Holdings Corp. 40,300 428,187
Philip Morris Cos., Inc. 30,100 697,944
RJ Reynolds Tobacco Holdings, Inc. 13,433 236,757
UST, Inc. 39,600 997,425
3,570,400
Crude Petroleum & Natural Gas (0.70%)
Texaco, Inc. 27,100 1,471,869
Department Stores (1.22%)
Dillard's, Inc., Class A 51,800 $ 1,045,712
J.C. Penney Co., Inc. 20,500 408,719
Wal-Mart Stores, Inc. 16,000 1,106,000
2,560,431
Drugs (4.94%)
Abbott Laboratories 35,900 1,303,619
American Home Products Corp. 35,200 1,388,200
Bristol-Myers Squibb Co. 24,600 1,579,012
Johnson & Johnson 21,000 1,955,625
Merck & Co., Inc. 31,200 2,092,350
Pharmacia & Upjohn, Inc. 20,500 922,500
Warner-Lambert Co. 13,600 1,114,350
10,355,656
Electric Lighting & Wiring
Equipment (0.11%)
Cooper Industries, Inc. 5,700 230,494
Electric Services (1.74%)
Central & Southwest Corp. 64,900 1,298,000
Dominion Resources, Inc. 23,700 930,225
Potomac Electric Power Co. 29,500 676,656
Reliant Energy, Inc. 32,200 736,575
3,641,456
Electrical Industrial Apparatus (1.07%)
Emerson Electric Co. 39,000 2,237,625
Electronic Components &
Accessories (0.36%)
National Semiconductor Corp. 17,700(a) 757,781
Electronic Distribution Equipment (1.47%)
General Electric Co. 19,900 3,079,525
Fats & Oils (0.65%)
Archer Daniels Midland Co. 111,788 1,362,416
Federal & Federally Sponsored
Credit (0.55%)
Federal National Mortgage Association 18,600 1,161,337
Fire, Marine & Casualty
Insurance (1.86%)
Berkshire Hathaway, Class A 21(a) 1,178,100
Hartford Financial Services Group, Inc. 11,700 554,287
Loews Corp. 15,600 946,725
St. Paul Cos., Inc. 36,100 1,216,119
3,895,231
General Industrial Machinery (1.05%)
Pall Corp. 54,900 1,183,781
Tyco International Ltd. 26,000 1,010,750
2,194,531
Grain Mill Products (0.79%)
Ralston-Ralston Purina Group 59,200 1,650,200
Groceries & Related Products (0.84%)
SYSCO Corp. 44,300 1,752,619
Grocery Stores (0.50%)
Albertson's, Inc. 32,634 1,052,447
Hospitals (0.39%)
Tenet Healthcare Corp. 35,200(a) $ 827,200
Industrial Inorganic Chemicals (0.92%)
Eastman Chemical Co. 11,850 565,097
Praxair, Inc. 27,200 1,368,500
1,933,597
Jewelry, Silverware & Plated Ware (0.11%)
Jostens, Inc. 9,700 235,831
Life Insurance (0.48%)
Lincoln National Corp. 25,200 1,008,000
Machinery, Equipment &
Supplies (0.69%)
Grainger (W.W.), Inc. 30,400 1,453,500
Management & Public Relations (0.44%)
Dun & Bradstreet Corp. 31,500 929,250
Measuring & Controlling Devices (0.12%)
Agilent Technologies, Inc. 3,240(a) 250,493
Meat Products (0.28%)
Tyson Foods, Inc. 36,300 589,875
Medical Instruments & Supplies (1.02%)
Becton, Dickinson & Co. 23,100 617,925
St. Jude Medical, Inc. 49,850(a) 1,529,772
2,147,697
Medical Services & Health
Insurance (1.65%)
Aon Corp. 21,337 853,480
Conseco, Inc. 58,400 1,043,900
Foundation Health Systems, Inc., Class A 95,340(a) 947,441
Pacificare Health Systems, Inc., Class B 11,600(a) 614,800
3,459,621
Miscellaneous Chemical
Products (0.93%)
Du Pont (E. I.) De Nemours Co. 29,663 1,954,050
Miscellaneous Converted Paper (1.04%)
Minnesota Mining & Mfg. Co. 22,300 2,182,612
Miscellaneous Food & Kindred
Products (0.33%)
Universal Foods Corp. 34,400 700,900
Miscellaneous Furniture &
Fixtures (0.53%)
Newell Rubbermaid, Inc. 38,100 1,104,900
Miscellaneous Transportation
Equipment (0.42%)
FMC Corp. 15,500(a) 888,344
Motion Picture Production &
Services (0.38%)
Walt Disney Co. 27,100 792,675
Motor Vehicles & Equipment (0.42%)
Ford Motor Co. 16,654 889,948
Oil & Gas Field Services (0.89%)
Diamond Offshore Drilling, Inc. 28,700 $ 877,144
Schlumberger Ltd. 15,600 877,500
TransOcean Sedco Forex, Inc. 3,026 101,952
1,856,596
Paper Mills (1.10%)
Fort James Corp. 37,400 1,023,825
Kimberly Clark Corp. 19,700 1,285,425
2,309,250
Petroleum Refining (2.57%)
Amerada Hess Corp. 27,900 1,583,325
Atlantic Richfield Co. 17,200 1,487,800
Conoco, Inc., Class B 19,284 479,690
Exxon Mobil Corp. 22,800 1,836,825
5,387,640
Pulp Mills (0.23%)
Boise Cascade Corp. 12,000 486,000
Rubber & Plastics Footwear (0.54%)
Nike, Inc. 23,000 1,139,938
Sanitary Services (0.32%)
Waste Management, Inc. 38,605 663,523
Savings Institutions (1.48%)
Citigroup, Inc. 55,900 3,105,944
Security Brokers & Dealers (0.20%)
Bear Stearns Cos., Inc. 9,812 419,463
Telephone Communication (1.85%)
AT&T Corp. 23,350 1,185,013
GTE Corp. 25,700 1,813,456
MCI WorldCom, Inc. 16,800 891,450
3,889,919
Total Common Stocks 118,682,593
Preferred Stock (0.62%)
Telephone Communication (0.62%)
Sprint - 8.25% Convertible Preferred 17,500 1,299,375
Principal
Amount Value
Bonds (24.52%)
Beverages (0.65%)
Seagram Co., Ltd. Notes;
6.50%; 4/1/2003 $1,400,000 $ 1,362,232
Blast Furnace & Basic Steel
Products (0.80%)
Carpenter Technology Corp.
Medium-Term Notes;
6.99%; 4/20/2018 1,700,000 1,492,775
Quanex Corp. Convertible
Subordinated Debentures;
6.88%; 6/30/2007 200,000 195,500
1,688,275
Commercial Banks (2.25%)
J.P. Morgan & Co., Inc.
Subordinated Notes;
6.70%; 11/1/2007 $1,800,000 $ 1,713,631
NationsBank Corp. Subordinated
Notes; 7.80%; 9/15/2016 3,000,000 3,000,147
4,713,778
Communications Equipment (0.81%)
Motorola, Inc. Debentures;
7.50%; 5/15/2025 1,750,000 1,703,774
Computer & Office Equipment (1.30%)
Seagate Technology, Inc.
Senior Notes;
7.13%; 3/1/2004 2,000,000 1,846,794
7.37%; 3/1/2007 1,000,000 881,044
2,727,838
Consumer Products (1.19%)
Philip Morris Cos., Inc. Notes;
7.25%; 9/15/2001 1,500,000 1,489,094
6.15%; 3/15/2010 1,000,000 999,150
2,488,244
Department Stores (1.86%)
Dillards, Inc. Notes;
6.43%; 8/1/2004 2,000,000 1,879,760
7.38%; 6/1/2006 845,000 811,504
Fred Meyer, Inc. Senior Notes;
7.38%; 3/1/2005 1,225,000 1,208,968
3,900,232
Farm & Garden Machinery (0.76%)
Deere & Co. Senior Debentures;
8.50%; 1/9/2022 1,500,000 1,591,039
Fire, Marine & Casualty
Insurance (0.62%)
St. Paul Cos., Inc.
Medium Term Notes; Series C
6.38%; 12/15/2008 1,400,000 1,298,850
Forest Products (0.73%)
Weyerhaeuser Co. Debentures;
6.95%; 10/1/2027 1,700,000 1,528,047
Funeral Service & Crematories (1.07%)
Service Corp. International Notes;
6.75%; 6/1/2001 2,450,000 2,241,057
General Government, NEC (1.04%)
Province of Quebec, Canada
Debentures; 7.50%; 7/15/2002 700,000 706,993
7.00%; 1/30/2007 1,500,000 1,467,315
2,174,308
General Industrial Machinery (0.14%)
Ingersoll-Rand Medium-Term Notes;
6.46%; 11/19/2003 300,000 290,769
Medical Service & Health
Insurance (0.33%)
Aetna Services, Inc.;
6.38%; 8/15/2003 715,000 $ 683,338
Miscellaneous Investing (1.17%)
Federal Realty Investment Trust
Notes; 8.88%; 1/15/2000 1,000,000 1,000,506
Kimco Realty Corp. Senior Notes;
6.50%; 10/1/2003 1,525,000 1,457,186
2,457,692
Motor Vehicles & Equipment (1.48%)
Chrysler Corp. Debentures;
7.45%; 3/1/2027 1,800,000 1,747,307
General Motors Corp. Debentures;
7.70%; 4/15/2016 1,353,000 1,356,906
3,104,213
Paper & Paper Products (0.35%)
Boise Cascade Office Products
Corp. Notes; 7.05%; 5/15/2005 800,000 746,025
Paper Mills (0.62%)
International Paper Co. Notes;
6.88%; 7/10/2000 1,295,000 1,295,989
Petroleum & Petroleum
Products (0.97%)
Enron Corp. Notes;
6.75%; 9/1/2004 2,100,000 2,045,564
Plumbing & Heating, Except
Electricity (0.46%)
Masco Corp. Notes; 6.13%; 9/15/2003 1,000,000 975,590
Railroads (1.52%)
Norfolk Southern Debentures;
9.00%; 3/1/2021 1,500,000 1,606,125
Union Pacific Corp. Notes;
7.00%; 6/15/2000 1,575,000 1,579,903
3,186,028
Security Brokers & Dealers (2.72%)
Bear Stearns Cos., Inc. Senior Notes;
6.13%; 2/1/2003 1,600,000 1,544,062
Lehman Brothers, Inc. Senior
Subordinated Notes;
6.13%; 2/1/2001 1,300,000 1,284,708
7.25%; 4/15/2003 1,300,000 1,290,930
Morgan Stanley Group, Inc.
Debentures; 8.88%; 10/15/2001 1,530,000 1,577,057
5,696,757
Surety Insurance (1.68%)
Allstate Corp. Debentures;
6.75%; 5/15/2018 2,650,000 2,368,369
MBIA, Inc. Debentures;
7.00%; 12/15/2025 1,300,000 1,161,153
3,529,522
Trucking & Courier Services,
Except Air (0.00%)
Builders Transport, Inc. Convertible
Subordinated Debentures;
6.50%; 5/1/2011 306,000(b) 765
Total Bonds 51,429,926
Principal
Type Rate Maturity Amount Value
Federal Home Loan Mortgage Corporation (FHLMC)
Certificates (3.28%)
FHLMC 6.00% 1/1/2029 $ 966,110 $ 885,948
FHLMC 6.50 9/1/2027-5/1/2029 4,923,476 4,654,955
FHLMC 7.00 12/1/2027 1,392,298 1,349,643
Total FHLMC Certificates 6,890,546
Federal National Mortgage Association (FNMA)
Certificates (0.66%)
FNMA 6.50 8/1/2028 1,474,895 1,392,946
Government National Mortgage Association (GNMA)
Certificates (3.06%)
GNMA II 6.00 9/20/2026-1/15/2029 7,057,138 6,421,059
Principal
Amount Value
Asset-Backed Securities (8.24%)
Mortgage Pass-Through Securities (7.28%)
Chase Commercial Mortgage Securities
Corp. Mortgage Pass-Through
Cert., Series 1998-1, Class B;
6.56%; 5/18/2008 $2,800,000 $ 2,624,435
DLJ Commercial Mortgage Corp.,
Mortgage Pass-Through Cert.,
Series 1998-CF1, Class A-1B;
6.41%; 2/18/2008 2,900,000 2,722,636
First Union Commercial Mortgage
Trust Commercial Mortgage
Pass-Through Certificate,
Series 1999-C1, Class B;
6.22%; 12/15/2008 1,900,000 1,732,971
GMAC Commercial Mortgage
Securities, Inc. Mortgage
Pass-Through Certificates,
Series 1998-C2, Class C;
6.50%; 8/15/2008 2,500,000 2,290,125
J.P. Morgan Commercial Mortgage
Finance Corp. Mortgage
Pass-Through Certificates,
Series 1999-C7, Class B;
6.66%; 10/15/2035 1,000,000 933,240
LB Commercial Conduit Mortgage Trust,
Mortgage Pass-Through Cert.,
Series 1999-C1, Class A2
6.78%; 6/15/2031 1,000,000 953,450
LB Commercial Mortgage Trust,
Mortgage Pass-Through Cert.,
Series 1998-C4, Class A-1B;
6.21%; 10/15/2008 2,000,000 1,842,240
Lehman Large Loan
Series 1997-LLI, Class A1
6.79%; 6/12/2004 218,304 216,521
Morgan Stanley Capital I, Inc.
Commercial Mortgage,
Series 1999-RM1, Class B;
6.81%; 12/15/2031 2,100,000 1,962,843
15,278,461
Personal Credit Institutions (0.96%)
Chase Manhattan Credit Card
Master Trust Asset-Backed
Cert., Series 1997-2, Class A;
6.30%; 4/15/2003 $2,000,000 $ 1,998,200
Total Asset-Backed Securities 17,276,661
Commercial Paper (2.20%)
Personal Credit Institutions (2.20%)
Investment in Joint Trade Account,
Associates Corp.; 4.00%; 01/03/2000 4,600,769 4,600,769
Total Portfolio Investments (99.16%) 207,993,875
Cash, receivables and other assets,
net of liabilities (0.84%) 1,753,437
Total Net Assets (100.00%) $209,747,312
(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 (97.86%)
Bakery Products (2.80%)
Sara Lee Corp. 8,200 $ 180,913
Beverages (5.15%)
Anheuser-Busch Cos., Inc. 2,300 163,013
PepsiCo, Inc. 4,800 169,200
332,213
Books (2.77%)
McGraw-Hill Cos., Inc. 2,900 178,713
Commercial Banks (4.73%)
Bank One Corp. 3,200 102,600
J.P. Morgan & Co., Inc. 1,600 202,600
305,200
Communications Equipment (4.56%)
Motorola, Inc. 2,000 294,500
Computer & Office Equipment (9.17%)
Automatic Data Processing, Inc. 4,400 237,050
Hewlett-Packard Co. 1,800 205,087
Pitney Bowes, Inc. 3,100 149,769
591,906
Department Stores (4.39%)
Wal-Mart Stores, Inc. 4,100 283,412
Drugs (9.68%)
American Home Products Corp. 3,400 $ 134,088
Johnson & Johnson 1,800 167,625
Merck & Co., Inc. 2,600 174,362
Pharmacia & Upjohn 3,300 148,500
624,575
Eating & Drinking Places (2.56%)
McDonald's Corp. 4,100 165,281
Electrical Industrial Apparatus (2.49%)
Emerson Electric Co. 2,800 160,650
Fire, Marine & Casualty
Insurance (6.15%)
American International Group, Inc. 1,900 205,438
Chubb Corp. 3,400 191,462
396,900
General Industrial Machinery (2.81%)
Pall Corp. 8,400 181,125
Grain Mill Products (2.43%)
Kellogg Co. 5,100 157,144
Groceries & Related Products (3.43%)
Sysco Corp. 5,600 221,550
Household Appliances (3.84%)
General Electric Co. 1,600 247,600
Measuring & Controlling Devices (0.19%)
Agilent Technologies, Inc. 157(a) 12,138
Medical Instruments & Supplies (2.65%)
Becton, Dickinson & Co. 6,400 171,200
Miscellaneous Converted Paper
Products (2.88%)
Minnesota Mining & Mfg. Co. 1,900 185,963
Miscellaneous Food & Kindred
Products (3.10%)
Bestfoods 3,800 199,737
Petroleum Refining (8.26%)
Exxon Mobil Corp. 4,444 358,020
Royal Dutch Petroleum Co. ADR 2,900 175,269
533,289
Preserved Fruits & Vegtables (2.59%)
H. J. Heinz Co. 4,200 167,212
Sugar & Confectionery Products (2.83%)
Wrigley (Wm.) Jr. Co. 2,200 182,462
Telephone Communication (5.38%)
AT&T Corp. 3,500 $ 177,625
GTE Corp. 2,400 169,350
346,975
Women's Clothing Stores (3.02%)
Limited, Inc. 4,300 186,244
Too, Inc. 485(a) 8,366
194,610
Total Common Stocks 6,315,268
Principal
Amount Value
Commercial Paper (0.02%)
Personal Credit Institutions (0.02%)
Investments in Joint Trade Account,
Associates Corp.; 4.00%; 1/3/2000 $1,224 $ 1,224
Total Portfolio Investments (97.88%) 6,316,492
Cash and receivables, net of liabilities (2.12%) 136,975
Total Net Assets (100.00%) $6,453,467
(a) Non-income producing security - No dividend paid during the period.
BOND ACCOUNT
Principal
Amount Value
Bonds (92.73%)
Air Transportation, Scheduled (2.63%)
Continental Airlines Pass-Through Cert.,
Series 1999-2 Class A-1;
7.26%; 9/15/2021 $2,000,000 $ 1,911,220
Federal Express Corp.,
Pass-Through Cert.;
7.96%; 3/28/2017 282,311 267,021
7.58%; 7/2/2019 500,000 470,700
Northwest Airlines Pass-Through Cert.,
Series 1999-1 Class 1A;
6.81%; 2/1/2020 699,409 638,728
3,287,669
Bakery Products (0.72%)
Nabisco, Inc. Notes; 7.05%; 7/15/2007 950,000 901,047
Beverages (2.46%)
Canadaigua Brands, Inc. Senior Notes;
8.63%; 8/1/2006 1,500,000 1,494,375
Joseph E. Seagram & Sons Guaranteed
Debentures; 8.88%; 9/15/2011 1,500,000 1,590,453
3,084,828
Broadwoven Fabric Mills,
Cotton (1.03%)
Burlington Industries, Inc. Notes;
7.25%; 9/15/2005 $1,500,000 $ 1,288,101
Cable & Other Pay TV Services (2.41%)
Cox Communications, Inc. Notes;
7.75%; 8/15/2006 1,500,000 1,513,734
CSC Holdings, Inc. Senior Notes;
8.13%; 8/15/2009 1,500,000 1,498,125
3,011,859
Cash Grains (0.24%)
Aktiebolaget SKF Senior Notes;
7.63%; 7/15/2003 300,000 296,085
Combination Utility Services (2.00%)
Puget Sound Power & Light Co. First
Mortgage Medium-Term Notes,
Series A; 7.75%; 2/1/2007 2,500,000 2,498,190
Computer & Data Processing
Services (2.33%)
Comdisco, Inc.
Notes; 6.00%; 1/30/2002 2,000,000 1,936,234
Medium-Term Notes;
6.65%; 11/13/2001 1,000,000 981,857
2,918,091
Computer & Office Equipment (2.94%)
International Game Technology
Senior Notes; 8.38%; 5/15/2009 2,000,000(a) 1,915,000
Seagate Technology, Inc. Senior Notes;
7.37%; 3/1/2007 2,000,000 1,762,088
3,677,088
Credit Reporting & Collection (2.39%)
Orix Credit Alliance Short-Term Notes;
7.00%; 3/15/2001 3,000,000(a) 2,983,140
Crude Petroleum & Natural Gas (1.29%)
Louis Dreyfus Natural Gas Corp.
Senior Notes; 6.88%; 12/1/2007 1,500,000 1,353,510
Occidental Petroleum Corp.
Medium-Term Notes;
9.73%; 6/15/2001 250,000 258,518
1,612,028
Department Stores (1.67%)
Harcourt General, Inc. Subordinated
Notes; 9.50%; 3/15/2000 350,000 351,630
J.C. Penney Co., Inc. Medium-Term
Notes, Series A;
6.88%; 10/15/2015 1,500,000 1,207,524
Sears Roebuck Co. Medium-Term
Notes; 9.05%; 2/6/2012 500,000 535,068
2,094,222
Drug Stores & Proprietary Stores (0.82%)
Rite Aid Corp. Senior Debentures;
6.88%; 8/15/2013 1,500,000 1,020,000
Eating & Drinking Places (2.29%)
Aramark Services, Inc.;
6.75%; 8/1/2004 3,000,000 2,864,985
Electric Services (10.97%)
AES Ironwood LLC Senior Secured
Bonds; 8.88%; 11/30/2025 $3,000,000(a) $ 2,840,040
CE Generation LLC Senior Secured
Notes; 7.42%; 12/15/2018 1,000,000(a) 918,850
Calpine Corp. Notes; 7.75%; 4/15/2009 2,000,000 1,890,000
Central Vermont Public Service Corp.
Second Mortgage Bonds;
8.13%; 8/1/2004 2,000,000(a) 1,934,226
Commonwealth Edison Co. Debentures;
6.95%; 7/15/2018 1,000,000 901,957
East Coast Power, LLC Senior Secured
Notes; 7.53%; 6/30/2017 2,000,000 1,768,360
Osprey Trust/Osprey I, Inc. Senior
Secured Notes; 8.31%; 1/15/2003 3,500,000(a) 3,475,245
13,728,678
Engines & Turbines (0.72%)
Brunswick Corp. Debentures;
7.38%; 9/1/2023 1,000,000 894,610
Fabricated Rubber Products,
NEC (0.21%)
M.A. Hanna Co. Senior Notes;
9.38%; 9/15/2003 250,000 262,729
Farm & Garden Machinery (1.11%)
Case Corp. Notes; 7.25%; 1/15/2016 1,500,000 1,388,315
Funeral Service & Crematories (1.19%)
Service Corp. International Notes;
6.00%; 12/15/2005 2,000,000 1,486,382
General Government, NEC (0.40%)
Ontario Hydro Debentures;
7.45%; 3/31/2013 500,000 496,185
General Industrial Machinery (0.74%)
Timken Co. Medium-Term Notes;
6.20%; 1/15/2008 1,000,000 921,680
Gold & Silver Ores (0.55%)
Placer Dome, Inc. Notes;
7.13%; 6/15/2007 750,000 688,074
Grain Mill Products (0.80%)
Ralston Purina Co. Debentures;
7.75%; 10/1/2015 1,000,000 996,758
Groceries & Related Products (1.13%)
Supervalu, Inc. Medium-Term Notes,
Series B; 6.49%; 12/12/2005 1,500,000 1,376,556
Grocery Stores (1.57%)
American Stores Co. Bonds;
8.00%; 6/1/2026 1,000,000 1,012,016
Food Lion, Inc. Notes;
7.55%; 4/15/2007 1,000,000 947,319
1,959,335
Highway & Street Construction (1.28%)
Foster Wheeler Corp. Notes;
6.75%; 11/15/2005 1,900,000 1,595,297
Hotels & Motels (3.49%)
Hilton Hotels Corp. Notes;
7.70%; 7/15/2002 $1,500,000 $ 1,484,508
Marriott International, Inc. Notes;
6.63%; 11/15/2003 3,000,000 2,880,987
4,365,495
Industrial Organic Chemicals (1.97%)
Equistar Chemicals LP Senior Notes;
8.75%; 2/15/2009 2,500,000 2,463,578
Life Insurance (0.74%)
John Hancock Mutual Life Insurance
Co. Surplus Notes;
7.38%; 2/15/2024 1,000,000(a) 924,353
Lumber & Construction
Materials (1.27%)
Crane Co. Notes; 8.50%; 3/15/2004 1,524,000 1,591,391
Machinery, Equipment &
Supplies (0.59%)
AAR Corp. Notes; 7.25%; 10/15/2003 750,000 734,167
Management & Public Relations (2.28%)
ServiceMaster Co. Ltd.
Notes; 6.95%; 8/15/2007 1,000,000 930,089
7.88%; 8/15/2009 2,000,000 1,925,202
2,855,291
Millwork, Plywood & Structural
Members (0.09%)
Georgia-Pacific Corp.
Debentures; 9.50%; 12/1/2011 100,000 110,520
Miscellaneous Investing (2.78%)
First Industrial LP Medium-Term
Notes; 7.00%; 12/1/2006 2,000,000 1,803,902
Washington REIT Senior Notes;
7.25%; 8/13/2006 1,000,000 954,930
Weingarten Realty Investors
Medium-Term Notes;
7.29%; 5/23/2005 750,000 723,738
3,482,570
Miscellaneous Metal Ores (0.29%)
Cyprus Minerals Co. Notes;
10.13%; 4/1/2002 350,000 360,409
Mortgage Bankers & Brokers (1.48%)
Chase Commercial Mortgage
Securities Corp. Class C Notes;
6.60%; 12/19/2007 2,000,000 1,856,580
Motor Vehicles & Equipment (1.68%)
Ford Motor Credit Co. Senior Notes;
5.80%; 1/12/2009 1,500,000 1,329,750
TRW, Inc. Medium-Term Notes;
9.25%; 12/30/2011 700,000 775,106
2,104,856
Newspapers (3.55%)
News America Holdings, Inc.
Guaranteed Senior Notes;
8.50%; 2/15/2005 $1,500,000 $ 1,556,482
United News & Media PLC Notes;
7.75%; 7/1/2009 3,000,000 2,878,863
4,435,345
Oil & Gas Field Services (1.92%)
Petroleum Geo-Services ASA
Notes; 7.50%; 3/31/2007 2,000,000 1,951,896
R&B Falcon Senior Notes;
6.75%; 4/15/2005 500,000 448,750
2,400,646
Operative Builders (1.47%)
Pulte Corp.
Notes; 7.63%; 10/15/2017 1,000,000 854,998
Senior Notes; 8.38%; 8/15/2004 1,000,000 993,453
1,848,451
Paper & Paper Products (1.12%)
Boise Cascade Office Products Corp.
Notes; 7.05%; 5/15/2005 1,500,000 1,398,798
Paper Mills (1.47%)
Bowater, Inc. Debentures;
9.38%; 12/15/2021 200,000 217,264
Champion International Corp. Notes;
9.88%; 6/1/2000 250,000 253,191
7.10%; 9/1/2005 875,000 848,839
Potlatch Corp. Medium-Term
Notes; 8.75%; 1/14/2022 500,000 518,257
1,837,551
Petroleum Refining (2.51%)
Ashland Oil, Inc. Medium-Term Notes,
Series F; 8.54%; 1/13/2005 250,000 258,259
7.71%; 5/11/2007 500,000 492,051
7.73%; 7/15/2013 250,000 241,343
Sun Co., Inc.
Debentures; 9.00%; 11/1/2024 500,000 525,452
Notes; 7.13%; 3/15/2004 200,000 195,985
Tosco Corp. Notes; 7.25%; 1/1/2007 1,500,000 1,425,456
3,138,546
Plumbing & Heating, Except
Electric (0.37%)
Masco Corp. Debentures;
7.13%; 8/15/2013 500,000 464,747
Public Building & Related
Furniture (0.77%)
Lear Corp. Senior Notes;
7.96%; 5/15/2005 1,000,000(a) 962,748
Pulp Mills (0.16%)
International Paper Co. Medium-Term
Notes; 9.70%; 8/15/2000 200,000 203,540
Railroads (1.48%)
Union Pacific Corp.
Debentures; 7.00%; 2/1/2016 1,000,000 912,581
Notes; 6.40%; 2/1/2006 1,000,000 942,249
1,854,830
Rental of Railroad Cars (0.76%)
GATX Capital Corp. Medium-Term
Notes, Series C; 6.86%; 10/13/2005 1,000,000 948,961
Residential Building Construction (3.01%)
D.R. Horton, Inc. Senior Notes;
8.00%; 2/1/2009 $2,000,000 $ 1,830,000
Southern Energy, Inc. Senior Notes;
7.90%; 7/15/2009 2,000,000(a) 1,935,638
3,765,638
Sanitary Services (1.15%)
Laidlaw, Inc. Senior Notes;
7.88%; 4/15/2005 1,045,000 994,516
WMX Technologies, Inc. Notes;
7.00%; 10/15/2006 500,000 437,627
1,432,143
Search & Navigation Equipment (2.00%)
Raytheon Co. Notes;
6.40%; 12/15/2018 3,000,000 2,499,867
Security Brokers & Dealers (4.27%)
Bear Stearns Co., Inc. Senior Notes;
7.00%; 3/1/2007 2,500,000 2,375,140
Lehman Brothers, Inc.
Senior Subordinated Notes;
7.38%; 1/15/2007 3,000,000 2,918,805
5,293,945
Telephone Communication (4.11%)
Global Crossing Holdings Ltd. Senior
Notes; 9.13%; 11/15/2006 2,500,000(a) 2,471,875
Sprint Capital Corp. Global Bonds;
6.88%; 11/15/2028 3,000,000 2,668,710
5,140,585
Variety Stores (0.13%)
Dayton-Hudson Corp. Debentures;
9.63%; 2/1/2008 150,000 168,832
Total Bonds 115,976,315
Asset-Backed Securities (3.77%)
Investment Offices (2.20%)
Morgan Stanley Capital I, Inc.
Commercial Mortgage
Pass-Through Cert., Series 99-WF1,
Class C; 6.54%; 10/15/2008 3,000,000 2,750,700
Security Brokers & Dealers (1.57%)
Merrill Lynch Mortgage Investors, Inc.
Collateralized Mortgage-Backed
Security, Series 95-C3, Class C;
7.34%*; 12/26/2025 2,000,000 1,965,140
Total Asset-Backed Securities 4,715,840
Commercial Paper (0.92%)
Personal Credit Institutions (0.92%)
Investment in Joint Trade Account,
Associates Corp.; 4.00%; 1/3/2000 $1,152,804 $ 1,152,804
Total Portfolio Investments (97.42%) 121,844,959
Cash, receivables and other assets,
net of liabilities (2.58%) 3,221,701
Total Net Assets (100.00%) $125,066,660
(a) Restricted security - See Note 4 to the financial statements. * Variable
rate (monthly).
CAPITAL VALUE ACCOUNT
Shares
Held Value
Common Stocks (98.28%)
Bakery Products (1.18%)
Sara Lee Corp. 196,200 $ 4,328,662
Beverages (1.04%)
PepsiCo, Inc. 108,100 3,810,525
Combination Utility Services (1.47%)
Montana Power Co. 150,000 5,409,375
Commercial Banks (14.81%)
AmSouth Bancorp. 407,530 7,870,423
Bank of America Corp. 151,100 7,583,331
Bank One Corp. 236,934 7,596,696
Chase Manhattan 145,000 11,264,688
Comerica, Inc. 142,500 6,652,969
First Union Corp. 109,620 3,596,906
KeyCorp 206,000 4,557,750
Summit Bancorp. 175,300 5,368,563
54,491,326
Communications Equipment (1.14%)
Motorola, Inc. 28,500 4,196,625
Computer & Data Processing
Services (2.05%)
Shared Medical Systems Corp. 148,200 7,548,938
Computer & Office Equipment (2.63%)
Compaq Computer Corp. 143,900 3,894,294
Hewlett-Packard Co. 50,700 5,776,631
9,670,925
Crude Petroleum & Natural Gas (3.02%)
Texaco, Inc. 204,400 11,101,475
Department Stores (1.82%)
Sears, Roebuck & Co. 219,800 6,690,162
Drugs (7.06%)
Abbott Laboratories 224,800 $ 8,163,050
American Home Products Corp. 200,500 7,907,219
Merck & Co., Inc. 147,900 9,918,544
25,988,813
Electric Lighting & Wiring
Equipment (1.43%)
Cooper Industries, Inc. 130,200 5,264,963
Electric Services (2.71%)
FPL Group, Inc. 66,900 2,864,156
Pinnacle West Capital Corp. 128,700 3,933,394
Reliant Energy, Inc. 139,000 3,179,625
9,977,175
Electrical Industrial Apparatus (2.61%)
Emerson Electric Co. 167,500 9,610,312
Electronic Components &
Accessories (0.51%)
LSI Logic Corp. 27,800(a) 1,876,500
Forest Products (2.50%)
Weyerhaeuser Co. 128,200 9,206,362
Grain Mill Products (2.10%)
Kellogg Co. 250,200 7,709,287
Greeting Cards (1.88%)
American Greetings Corp. 293,161 6,925,929
Groceries & Related Products (2.98%)
Sysco Corp. 277,200 10,966,725
Grocery Stores (1.07%)
Albertson's, Inc. 122,000 3,934,500
Life Insurance (2.64%)
American General Corp. 128,000 9,712,000
Machinery, Equipment &
Supplies (1.51%)
Grainger (W.W.), Inc. 116,000 5,546,250
Management & Public Relations (1.13%)
Dun & Bradstreet Corp. 140,600 4,147,700
Measuring & Controlling Devices (1.13%)
Beckman Coulter, Inc. 43,300 2,202,888
Mallinckrodt, Inc. 62,000 1,972,375
4,175,263
Metal Cans & Shipping
Containers (1.62%)
Ball Corp. 151,100 5,949,562
Miscellaneous Converted Paper
Products (4.17%)
Avery Dennison Corp. 155,800 $11,353,925
Minnesota Mining & Mfg. Co. 40,900 4,003,087
15,357,012
Miscellaneous Furniture &
Fixtures (1.80%)
Newell Rubbermaid, Inc. 228,300 6,620,700
Paper Mills (3.17%)
Kimberly Clark Corp. 179,000 11,679,750
Petroleum Refining (9.43%)
Atlantic Richfield Co. 135,200 11,694,800
Chevron Corp. 128,600 11,139,975
Exxon Mobil Corp. 147,300 11,866,856
34,701,631
Plumbing & Heating, Except
Electric (2.04%)
Masco Corp. 296,400 7,521,150
Rental of Railroad Cars (2.02%)
GATX Corp. 220,000 7,425,000
Savings Institutions (1.48%)
Citigroup, Inc. 98,300 5,461,794
Soap, Cleaners & Toilet Goods (1.82%)
Procter & Gamble Co. 61,100 6,694,269
Telephone Communication (10.31%)
AT&T Corp. 196,550 9,974,913
Bell Atlantic Corp. 156,000 9,603,750
SBC Communications, Inc. 179,484 8,749,845
U.S. West, Inc. 133,400 9,604,800
37,933,308
Total Common Stocks 361,633,968
Principal
Amount Value
Commercial Paper (1.48%)
Personal Credit Institutions (1.48%)
Investment in Joint Trade Account,
Associates Corp.; 4.00%; 1/3/2000 $5,427,207 $ 5,427,207
Total Portfolio Investments (99.76%) 367,061,175
Cash and receivables, net of liabilities (0.24%) 865,591
Total Net Assets (100.00%) $367,926,766
(a) Non-income producing security - No dividend paid during the past twelve
months.
GOVERNMENT SECURITIES ACCOUNT
Principal
Type Rate Maturity Amount Value
Federal Home Loan Mortgage Corporation (FHLMC)
Certificates (26.96%)
FHLMC 5.50% 3/1/2024 $ 233,841 $ 210,003
FHLMC 6.00 1/1/2009 - 1/1/2026 5,373,224 5,092,113
FHLMC 6.50 6/1/2018 - 12/2/2028 14,871,462 14,076,179
FHLMC 7.00 1/1/2024 - 10/1/2028 11,163,683 10,815,996
FHLMC 7.50 12/1/2027 563,664 558,675
FHLMC Gold 5.50 2/1/2024 873,354 781,390
FHLMC Gold 6.00 7/1/2009 1,894,690 1,826,287
FHLMC Gold 6.50 10/1/2025 -5/1/2026 1,118,665 1,063,812
FHLMC Gold 7.00 9/1/2023 - 5/1/2028 1,825,690 1,776,328
FHLMC Gold 7.50 2/1/2022 - 8/1/2027 956,800 949,153
Total FHLMC Certificates 37,149,936
Federal National Mortgage Association (FNMA)
Certificates (14.86%)
FNMA 5.50 5/1/2024 997,935 894,170
FNMA 6.00 11/1/2023 - 11/1/2028 6,607,638 6,165,774
FNMA 6.50 11/1/2023 - 4/1/2029 9,566,812 9,058,520
FNMA 7.00 8/1/2023 - 11/1/2027 2,996,200 2,906,445
FNMA 7.50 4/1/2022 - 7/1/2027 869,946 862,603
FNMA Gold 6.50 8/1/2025 628,171 592,140
Total FNMA Certificates 20,479,652
Government National Mortgage Association (GNMA)
Certificates (24.56%)
GNMA I 6.50 5/15/2026 - 8/15/2028 2,664,171 2,506,836
GNMA I 7.00 1/15/2024 - 5/15/2028 4,939,555 4,781,959
GNMA I 7.50 1/15/2027 - 2/15/2027 1,177,665 1,170,977
GNMA II 6.00 5/20/2024 - 7/20/2029 25,042,974 22,839,659
GNMA II 6.50 12/20/2025 - 2/20/2026 2,706,996 2,548,125
Total GNMA Certificates 33,847,556
Principal
Amount Value
Private Export Funding Corporation (PEFCO)
Certificates (14.04%)
Private Export Funding Corp.
Notes;
6.24%; 5/15/2002 $ 200,000 $ 198,353
7.01%; 4/30/2004 280,000 281,396
8.40%; 7/31/2001 1,300,000 1,335,602
Secured Notes;
6.62%;10/1/2005 2,200,000 2,166,067
6.67%; 9/15/2009 4,400,000 4,254,870
8.35%; 1/31/2001 1,000,000 1,019,340
Series KK, Senior Secured Notes;
8.75%; 6/30/2003 2,373,000 2,513,557
Series SS, Senior Secured Notes;
5.50%; 3/15/2001 3,375,000 3,337,082
5.80%; 2/01/2004 1,980,000 1,944,574
7.03%; 10/31/2003 2,275,000 2,288,864
Total PEFCO Certificates 19,339,705
Student Loan Marketing Association (SLMA)
Certificates (13.55%)
Student Loan Marketing Association
Debentures;
7.30%; 8/1/2012 $10,000,000 $10,073,350
8.47%; 12/1/2008 1,000,000 1,087,765
9.15%; 12/1/2004 1,200,000 1,312,720
Global Notes;
6.05%; 9/14/2000 1,790,000 1,786,689
Medium-Term Notes;
5.57%; 3/17/2000 1,000,000 999,188
6.25%; 12/1/2008 1,100,000 1,036,765
Notes;
5.20%; 3/2/2001 500,000 493,183
6.13%; 12/1/2005 1,560,000 1,493,416
9.25%; 6/1/2004 350,000 381,465
Total SLMA Certificates 18,664,541
Other Federal Agencies (2.69%)
Agency-Backed Bonds (2.69%)
Tennessee Valley Authority Bonds;
6.50%; 8/20/2001 1,374,000 1,368,552
Tennessee Valley Authority Global Notes;
0.00%; 5/1/2000 1,000,000(a) 981,729
6.38%; 6/15/2005 385,000 371,012
Tennessee Valley Authority Notes;
5.28%; 9/14/2001 1,000,000 980,227
Total Other Federal Agencies 3,701,520
Federal Agency Short-Term Obligations (2.12%)
Federal & Federally Sponsored
Credit (2.12%)
Investment in Joint Trade Account,
Federal Home Loan Bank System;
1.50%; 1/3/2000 2,926,788 2,926,788
Total Portfolio Investments (98.78%) 136,109,698
Cash and receivables, net of liabilities (1.22%) 1,677,772
Total Net Assets (100.00%) $137,787,470
(a) Non-income producing security - zero-coupon bond.
GROWTH ACCOUNT
Common Stocks (99.46%)
Accounting, Auditing &
Bookkeeping (1.17%)
Paychex, Inc. 101,500 $ 4,060,000
Beverages (2.56%)
Coca-Cola Co. 31,600 1,840,700
PepsiCo, Inc. 198,900 7,011,225
8,851,925
Cable & Other Pay TV Services (0.72%)
Charter Communciation, Class A 114,120(a) 2,496,375
Commercial Banks (5.28%)
Chase Manhattan Corp. 68,100 5,290,519
Fifth Third Bancorp 106,000 7,777,750
State Street Corp. 71,000 5,187,437
18,255,706
Communications Equipment (13.52%)
General Instrument Corp. 82,700(a) 7,029,500
Lucent Technologies, Inc. 132,000 9,875,250
Motorola, Inc. 29,800 4,388,050
Network Appliance, Inc. 69,000 5,731,312
Qualcom Inc. 48,000 8,454,000
Tellabs, Inc. 75,000(a) 4,814,062
Williams Communication Group, Inc. 223,600(a) 6,470,425
46,762,599
Computer & Data Processing
Services (13.21%)
BMC Software, Inc. 45,000(a) 3,597,187
IMS Health, Inc. 200,000 5,437,500
Microsoft Corp. 175,500(a) 20,489,625
Sun Microsystems, Inc. 44,000(a) 3,407,250
Veritas Software 89,000(a) 12,738,125
45,669,687
Computer & Office Equipment (9.70%)
Automatic Data Processing, Inc. 91,600 4,934,950
Cisco Systems, Inc. 114,000(a) 12,212,250
Comverse Technology, Inc. 62,500(a) 9,046,875
Dell Computer Corp. 76,500(a) 3,901,500
IBM Corp. 32,000 3,456,000
33,551,575
Department Stores (2.19%)
Wal-Mart Stores, Inc. 109,800 7,589,925
Drug Stores & Proprietary
Stores (2.17%)
CVS Corp. 188,000 7,508,250
Drugs (8.88%)
American Home Products Corp. 107,200 $ 4,227,700
Bristol-Myers Squibb Co. 50,100 3,215,794
Johnson & Johnson Co. 21,400 1,992,875
Lilly (Eli) & Co. 90,600 6,024,900
Merck & Co., Inc. 45,000 3,017,813
Pharmacia & Upjohn, Inc. 113,000 5,085,000
Schering-Plough Corp. 93,000 3,923,437
SmithKline Beecham PLC ADR 50,100 3,228,319
30,715,838
Electronic Components &
Accessories (4.16%)
Intel Corp. 90,600 7,457,513
Linear Technology Corp. 46,400 3,320,500
Solectron Corp. 38,000(a) 3,614,750
14,392,763
Electronic Distribution Equipment (2.28%)
General Electric Co. 50,900 7,876,775
Federal & Federally Sponsored
Credit (1.66%)
Federal National Mortgage Association 45,500 2,840,906
Federal Home Loan Mortgage Corp. 62,000 2,917,875
5,758,781
Fire, Marine & Casualty
Insurance (0.90%)
American International 28,750 3,108,594
Gas Production & Distribution (1.10%)
Williams Cos. Inc. 124,000 3,789,750
Hotels & Motels (1.77%)
Marriott International, Inc., Class A 193,900 6,119,969
Household Audio & Video
Equipment (1.28%)
Amazon.com, Inc. 58,000(a) 4,415,250
Lumber & Other Building
Materials (2.66%)
Home Depot, Inc. 134,400 9,214,800
Measuring & Controlling Devices (2.66%)
JDS Uniphase Corp. 57,000(a) 9,194,813
Medical Instruments & Supplies (3.97%)
Guidant Corp. 148,000(a) 6,956,000
Medtronic Inc. 186,000 6,777,375
13,733,375
Motion Picture Production &
Services (2.15%)
AT&T Corp.- Liberty Media 131,000(a) 7,434,250
Oil & Gas Field Services (0.91%)
Schlumberger Ltd. 50,000 2,812,500
TransOcean Sedco Forex 9,700 326,769
3,139,269
Savings Institutions (2.91%)
Citigroup Inc. 181,397 10,078,871
Soap, Cleaners & Toilet Goods (1.54%)
Colgate-Palmolive Co. 81,800 5,317,000
Telephone Communication (10.11%)
AT&T Corp. 179,652 $ 9,117,339
Global Crossing Ltd. 88,000(a) 4,400,000
MCI Worldcom Inc. 159,893(a) 8,484,296
McLeodUSA, Inc. 78,000(a) 4,592,250
Qwest Communications International 118,000(a) 5,074,000
Sprint Corp. 49,000 3,298,312
34,966,197
Total Common Stocks 344,002,337
Principal
Amount Value
Commercial Paper (0.41%)
Personal Credit Institutions (0.41%)
Investment in Joint Trade Account,
Associates Corp.; 4.00%; 1/3/2000 $1,413,935 $ 1,413,935
Total Commercial Paper 1,413,935
Total Portfolio Investments (99.87%) 345,416,272
Cash and receivables, net of liabilities (0.13%) 465,321
Total Net Assets (100.00%) $345,881,593
(a) Non-income producing security - No dividend paid during the past twelve
months.
HIGH YIELD ACCOUNT
Principal
Amount Value
Bonds (88.69%)
Advertising (3.73%)
Lamar Media Corp.
Senior Subordinated Notes;
9.63%; 12/1/2006 $500,000 $ 510,000
Beverages (2.19%)
Canadaigua Brands, Inc.
Senior Notes;
8.63%; 8/1/2006 300,000 298,875
Blast Furnace & Basic Steel
Products (0.88%)
California Steel Industries, Inc.
Senior Notes;
8.50%; 4/1/2009 125,000 120,000
Cable & Other Pay TV
Services (0.70%)
Century Communications, Inc. Senior
Notes; 8.75%; 10/1/2007 100,000 96,250
Cogeneration - Small Power
Producer (1.47%)
Calpine Corp. Senior Notes;
8.75%; 7/15/2007 $200,000 $ 200,500
Communications Equipment (2.06%)
FWT, Inc. Senior Subordinated Notes;
9.88%; 11/15/2007 200,000(a) 20,000
Williams Communication Group, Inc.
Senior Notes; 10.88%; 10/1/2009 250,000 261,250
281,250
Communications Services, NEC (6.82%)
Charter Communications Holdings, LLC
Senior Notes; 8.25%; 4/1/2007 500,000 461,250
Level 3 Communications, Inc.
Senior Notes; 9.13%; 5/1/2008 500,000 471,250
932,500
Computer & Data Processing
Services (1.85%)
DecisionOne Corp. Senior
Subordinated Notes;
9.75%; 8/1/2007 500,000(a) 1,875
PSINet, Inc. Senior Notes;
10.50%; 12/1/2006 250,000(b) 251,875
253,750
Computer & Office Equipment (2.12%)
International Game Technology
Senior Notes; 7.88%; 5/15/2004 300,000 290,250
Crude Petroleum & Natural Gas (4.99%)
Chesapeake Energy Corp. Senior
Notes, Series A;
9.63%; 5/1/2005 250,000 235,625
Gulf Canada Resources Ltd.
Senior Notes; 8.35%; 8/1/2006 200,000 196,500
Louis Dreyfus Natural Gas Co.
Senior Subordinated Notes;
9.25%; 6/15/2004 250,000 250,085
682,210
Eating & Drinking Places (4.30%)
Cafeteria Operators LP
Senior Secured Notes;
12.00%; 12/31/2001 500,000 495,000
Foodmaker, Inc. Senior
Subordinated Notes;
8.38%; 4/15/2008 100,000 92,875
587,875
Electric Services (2.56%)
AES Corp. Senior Notes;
9.50%; 6/1/2009 250,000 252,188
York Power Funding Ltd.
Senior Secured Bonds;
12.00%; 10/30/2007 100,000(b) 98,250
350,438
Electrical Work (3.59%)
Integrated Electrical Services
Senior Subordinated Notes;
9.38%; 2/1/2009 500,000 490,625
Forest Products (0.93%)
Doman Industries Ltd. Senior Notes;
8.75%; 3/15/2004 $150,000 $ 127,875
Funeral Service & Crematories (3.08%)
Service Corp. International Notes;
7.38%; 4/15/2004 500,000 421,235
Heavy Construction, Except
Highway (3.44%)
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%; 8/1/2005 250,000 231,250
John Q. Hammons Hotels LP &
Finance Corp. First Mortgage
Notes; 8.88%; 2/15/2004 300,000 276,000
Vail Resorts, Inc. Senior
Subordinated Notes;
8.75%; 5/15/2009 300,000 281,250
788,500
Miscellaneous Amusement,
Recreation Service (1.74%)
Station Casinos, Inc. Senior
Subordinated Notes,
8.88%; 12/1/2008 250,000 238,125
Miscellaneous Shopping Goods
Stores (0.71%)
Zale Corp. Senior Notes;
8.50%; 10/1/2007 100,000 97,000
Motor Vehicles, Parts &
Supplies (3.15%)
Special Devices, Inc. Senior
Subordinated Notes;
11.38%; 12/15/2008 500,000 431,250
Oil & Gas Field Services (1.67%)
Grey Wolf, Inc. Senior Notes;
8.88%; 7/1/2007 250,000 228,125
Personal Credit Institutions (7.82%)
MacSaver Financial Services, Inc.
Notes; 7.60%; 8/1/2007 200,000 118,000
Mercury Financial Services Corp.
Senior Notes; 10.00%; 3/23/2001 500,000(b) 475,000
Metris Companies, Inc. Notes;
10.00%; 11/1/2004 500,000 477,500
1,070,500
Petroleum Refining (1.66%)
Crown Central Petroleum Corp.
Senior Notes; 10.88%; 2/1/2005 300,000 226,500
Public Building & Related
Furniture (1.72%)
Lear Corp. Senior Notes;
8.11%; 5/15/2009 $250,000(b) $ 234,890
Pulp Mills (0.37%)
Pen-Tab Industries, Inc. Senior
Subordinated Notes;
10.88%; 2/1/2007 200,000 50,000
Radio & Television
Broadcasting (0.66%)
Antenna TV S.A. Senior Notes;
9.00%; 8/1/2007 100,000 90,000
Residential Building
Construction (1.67%)
D.R. Horton, Inc. Senior Notes;
8.00%; 2/1/2009 250,000 228,750
Retail Stores, NEC (1.09%)
Cole National Group, Inc.
Senior Subordinated Notes;
9.88%; 12/31/2006 200,000 149,000
Telephone Communication (12.93%)
Clearnet Communications, Inc.
Step-up* Senior Discount Notes;
12/15/2005 250,000(c) 245,312
Global Crossing Holdings Ltd.
Senior Notes; 9.13%; 11/15/2006 500,000(b) 494,375
Intermedia Communications, Inc.
Senior Notes; 8.50%; 1/15/2008 200,000 183,000
NEXTLINK Communications, Inc.
Senior Notes; 10.75%; 6/1/2009 200,000 205,500
Senior Notes; 10.50%; 12/1/2009 300,000(b) 304,500
Rogers Cantel, Inc. Senior Secured
Debentures; 9.75%; 6/1/2016 300,000 336,000
1,768,687
Water Transportation of
Freight, NEC (3.03%)
Cenargo International PLC
First Mortgage Notes;
9.75%; 6/15/2008 500,000 415,000
Total Bonds 12,129,960
Shares
Held Value
Preferred Stock (0.01%)
Fuel Dealers (0.01%)
Star Gas Partners LP 132 $ 1,749
Commercial Paper (7.98%)
Personal Credit Institutions (7.98%)
Investment in Joint Trade Account,
Associates Corp.; 4.00%; 1/3/2000 $616,798 $ 616,798
Associates First Capital Corp.;
4.00%; 1/3/2000 475,000 475,000
Total Commercial Paper 1,091,798
Total Portfolio Investments (96.68%) 13,223,507
Cash and receivables, net of liabilities (3.32%) 454,218
Total Net Assets (100.00%) $13,677,725
(a) Non-income producing security - Security in default.
(b) Restricted security - See Note 4 to the financial statements.
(c) Non-income producing security - Zero-step coupon bond.
* Variable Rate
INTERNATIONAL ACCOUNT
Shares
Held Value
Common Stocks (97.29%)
Advertising (1.43%)
WPP Group PLC 180,100 $ 2,830,109
Cable & Other Pay TV Services (0.59%)
United Pan-Europe Communications NV 9,100(a) 1,158,360
Central Reserve Depositories (0.70%)
Union Bank of Norway 59,840 1,384,847
Combination Utility Services (2.25%)
Alcatel Alsthom 19,400 4,433,379
Commercial Banks (11.69%)
Australia & New Zealand Banking Group 386,000 2,798,778
Bank of Ireland 394,518 3,123,865
Deutsche Bank AG NPV 26,800 2,257,724
H&CB 35,000(a) 1,112,288
Merita PLC, Class A 462,460 2,711,617
National Australia Bank 110,986 1,692,099
Nordbanken Holding AB 98,000 573,567
Royal Bank of Canada Montreal, Quebec 68,300 2,988,340
Sanwa Bank Ltd. 248,000 3,011,714
Shinhan Bank 74,000 803,496
Svenska Handelsbanken, Class B 169,500 1,993,994
23,067,482
Communications Equipment (5.12%)
ECI Telecommunications Ltd. ADR 55,100 1,742,537
Telefonaktiebolaget Lm Ericsson,
Class B 86,000 5,506,478
Siemens AG 22,600 2,860,949
10,109,964
Communications Services, NEC (4.33%)
Koninklijke KPN NV 58,650 $ 5,696,264
Korea Telecom Corp. ADR 38,000 2,840,500
8,536,764
Computer & Data Processing
Services (4.30%)
Cap Gemini SA 17,700 4,470,665
Getronics NV 50,400 4,000,866
8,471,531
Computer & Office Equipment (7.55%)
Canon, Inc. 76,000 3,014,606
Compal Electronics, Inc. 383,383 1,290,172
Fujitsu Ltd. 107,000 4,871,477
NEC Corp. 155,000 3,687,411
Orbotech Ltd. ADR 26,200(a) 2,030,500
14,894,166
Concrete, Gypsum & Plaster
Products (1.31%)
Lafarge 22,300 2,583,812
Consumer Products (1.65%)
Japan Tobacco, Inc. 86 657,047
Swedish Match Co. 747,000 2,596,959
3,254,006
Copper Ores (0.31%)
Trelleborg AB, Class B 67,800 607,127
Crude Petroleum & Natural Gas (2.00%)
Total Fina SA, Class B 29,733 3,948,689
Drugs (5.06%)
AstraZeneca Group PLC 35,976 1,516,015
Novartis AG 1,568 2,290,192
Rhodia, Inc. SA 103,000 2,316,639
Taisho Pharmaceutical Co. 54,000 1,582,727
Takeda Chemical Industries 46,000 2,269,552
9,975,125
Electronic Components &
Accessories (0.14%)
Elec & Eltek International ADR 84,800 274,752
Electronic Distribution Equipment (2.87%)
Koninklijke Philips Electronics 41,796 5,655,445
Farm & Garden Machinery (0.25%)
CNH Global NV 36,464 485,427
Finance Services (0.95%)
Takefuji Corp. 15,000 1,874,359
Fire, Marine & Casualty
Insurance (1.26%)
Royal & Sun Alliance Insurance
Group PLC 333,000 2,482,223
Foreign Bank, Branches &
Agencies (2.66%)
Bank Austria AG 33,100 1,857,866
UBS AG 12,600 3,384,702
5,242,568
Gas Production & Distribution (0.86%)
OMV AG 17,450 1,687,800
General Industrial Machinery (0.73%)
Mannesmann AG NPV 6,000 $ 1,445,719
Industrial Inorganic Chemicals (2.10%)
Aventis SA 72,260 4,142,759
Industrial Organic Chemicals (1.11%)
Clariant AG 4,600 2,181,127
Investment Offices (2.11%)
Amvescap PLC 348,800 4,159,997
Life Insurance (2.58%)
AXA 13,300 1,844,956
ING Groep NV 54,100 3,250,217
5,095,173
Meat Products (2.20%)
Danisco AS 57,700 2,238,261
Orkla ASA, Class A 122,000 2,094,768
4,333,029
Medical Instruments & Supplies (0.96%)
Terumo Corp. 71,000 1,893,703
Miscellaneous Business Services (1.12%)
Brisa-Auto Estradasde De Portugal SA 290,000 2,214,885
Miscellaneous Investing (1.51%)
Investor AB, Class B 212,000 2,977,867
Miscellaneous Non-Durable Goods (3.71%)
Desc SA, Series B 850,000(a) 699,363
Diageo PLC 373,205 2,992,439
Lagardere SCA 67,000 3,626,326
7,318,128
Miscellaneous Primary Metal
Products (0.14%)
Charter PLC 64,000 274,892
Miscellaneous Textile Goods (0.28%)
Esprit Holdings Ltd. 517,000 558,667
Miscellaneous Transportation
Equipment (0.79%)
Autoliv, Inc. 53,700 1,565,171
Motion Pictures Production &
Services (0.91%)
News Corp. Ltd. ADS 47,000 1,797,750
Motor Vehicles & Equipment (0.64%)
Honda Motor Co. Ltd. 19,000 705,388
Mitsubishi Motors Corp. 164,000(a) 559,191
1,264,579
Newspapers (2.86%)
Publishing & Broadcasting Ltd. 240,000 1,826,388
United News & Media PLC 306,000 3,822,152
5,648,540
Oil & Gas Field Services (0.45%)
Petroleum Geo-Services ASA 49,700(a) $ 884,279
Paperboard Containers & Boxes (0.75%)
Buhrmann NV 98,200 1,471,468
Periodicals (2.26%)
VNU NV 85,200 4,455,967
Personnel Supply Services (0.64%)
Vedior NV 124,060 1,268,324
Pulp Mills (1.14%)
UPM-Kymmene OYJ 56,240 2,254,777
Radio & Television Broadcasting (1.70%)
Carlton Communications 201,198 1,973,191
Fuji Television Network, Inc. 101 1,381,466
3,354,657
Soap, Cleaners & Toilet Goods (1.02%)
Reckitt Benckiser, Inc. 212,945 2,004,311
Special Industry Machinery (1.33%)
Cookson Group 627,000 2,617,292
Telephone Communication (6.97%)
Hellenic Telecom Organization SA ADR 181,000 2,160,688
Nokia Corp. ADR, Class A 21,000 3,990,000
Telecom Corp of New Zealand Ltd. 715,000 3,355,862
Telecom Italia-DI 475,575 2,883,850
Vodafone Group 273,000 1,349,684
13,740,084
Total Common Stocks 191,881,080
Preferred Stock (0.57%)
Commercial Banks (0.57%)
National Australia Bank ECU 40,500 1,118,812
Principal
Amount Value
Commercial Paper (1.77%)
Personal Credit Institutions (1.77%)
Associates First Capital Corp.;
4.00%; 1/3/2000 $3,500,000 $ 3,500,000
Total Portfolio Investments (99.63%) 196,499,892
Cash and receivables, net of liabilities (0.37%) 735,584
Total Net Assets (100.00%) $197,235,476
(a) Non-income producing security - No dividend paid during the period.
International Account
Investments by Country
Total Percentage of
Country Value Total Value
Austria $ 3,545,666 1.80%
Australia 7,436,078 3.78
Canada 2,988,340 1.52
Switzerland 7,856,021 4.00
Germany 6,564,392 3.34
Denmark 2,238,261 1.14
Finland 8,956,394 4.56
France 27,367,225 13.93
Hong Kong 558,667 0.28
Israel 3,773,038 1.92
Italy 2,883,850 1.47
Japan 25,508,642 12.98
Korea, Republic of 4,756,284 2.42
Mexico 699,363 0.36
Netherlands 27,442,337 13.96
Norway 4,363,895 2.22
New Zealand 3,355,862 1.71
Portugal 2,214,885 1.13
Sweden 17,337,177 8.82
Singapore 274,752 0.14
Taiwan, Province of China 1,290,172 0.66
United Kingdom 29,790,841 15.16
United States 5,297,750 2.70
Total $196,499,892 100.00%
INTERNATIONAL SMALLCAP ACCOUNT
Shares
Held Value
Common Stocks (94.40%)
Advertising (1.86%)
DMS, Inc. 4,000 $ 62,137
Securenet Ltd. 72,500(a) 327,333
SR Teleperformance 1,900 354,213
743,683
Air Transportation, Scheduled (2.00%)
H.I.S. Co. Ltd. 6,700 477,192
Ryanair Holdings PLC ADR 5,841(a) 321,985
799,177
Airports, Flying Fields & Services (0.27%)
Auckland International Airport Ltd. 71,000 107,377
Business Credit Institutions (0.88%)
Japan Securities Finance Co. 38,000 213,473
PhileoAllied Berhad 158,000(a) 139,705
353,178
Commercial Banks (1.14%)
Koram Bank 59,900(a) 454,749
Commercial Printing (2.68%)
Creo Products, Inc. 19,817(a) 761,716
Orell Fuessli Holding AG 30(a) 80,120
SATO Corp. 10,100 231,889
1,073,725
Communications (1.79%)
Comptel Oyj 5,879(a) $ 411,534
Techniche Ltd. 89,100(a) 306,083
717,617
Communications Equipment (0.86%)
Indra Sistemas SA 18,500 345,819
Communications Services, NEC (0.95%)
A-Com AB 16,800(a) 381,504
Computer & Data Processing
Services (11.85%)
AIT Group PLC 17,600 431,163
Articon Information Systems AG 2,400(a) 121,479
CI Technologies Group Ltd. 51,900 288,661
Computershare Ltd. 125,672 616,740
CRESCO LTD. 2,700 311,270
F-secure Oyj 5,100 148,241
Enea Data AB 4,700 360,352
Freenet.de AG 594(a) 65,371
GFI Informatique 5,090 652,509
Norman ASA 16,903(a) 182,970
Scoot.com PLC 65,000(a) 156,093
Solution 6 Holdings Ltd. 120,800(a) 1,312,131
Telinfo - Strip VVPR 500(a) 5
VISMA ASA 13,000(a) 97,049
4,744,034
Computer & Office Equipment (2.86%)
Baltimore Technologies PLC 7,500(a) 606,202
Imagination Technologies Group 44,000(a) 288,624
Venture Mfg. Ltd. 22,000 252,220
1,147,046
Construction & Related Machinery (1.23%)
Swisslog Holding AG 1,700 493,837
Department Stores (0.84%)
Keumkang Development Ind. Co. 28,135(a) 335,295
Drug Stores & Proprietary Stores (1.32%)
SEIJO CORP. 5,300 108,739
TSURUHA CO. LTD. 3,200 422,060
530,799
Drugs (1.38%)
PT Tempo Scan Pacific Tbk 344,000 287,886
SS Pharmaceutical Co. Ltd. 39,000 263,671
551,557
Eating & Drinking Places (0.83%)
Daisyo Corp. 3,000 33,618
MATSUYA FOODS CO. LTD. 6,000 225,685
Meiki Co. Ltd. 3,000 71,809
331,112
Electric Services (3.21%)
Energy Developments Ltd. 45,557 313,002
Independent Energy Holdings ADR 15,800(a) 526,337
Vestas Wind Systems 2,520(a) 444,646
1,283,985
Electronic Components &
Accessories (10.90%)
Acer Peripherals, Inc. 109,424 $ 453,752
C-MAC Industries, Inc. 15,400(a) 875,408
Chloride Group PLC 81,000 126,631
ELMOS Semiconductor AG 9,800(a) 422,370
FUJI ELECTRONICS CO. LTD. 6,000 139,514
JIT Holdings Ltd. 238,000 828,569
Perlos OYJ 21,900(a) 768,264
Prodisc Technology 77,000(a) 361,053
TOKYO DENPA CO. LTD. 10,000 390,797
4,366,358
Electronic Distribution Equipment (2.94%)
Austria Technologie & Systemtechnik AG 6,800(a) 353,732
JOT Automation Group OYJ 55,000 509,921
PMJ automec Oyj 26,700 312,306
1,175,959
Engineering & Architectural
Services (1.20%)
ALTEN 2,800(a) 480,463
Engines & Turbines (1.11%)
MORITEX CORP. 7,000 341,947
NEG Micon 5,039 103,843
445,790
Family Clothing Stores (0.73%)
Giordano International Ltd. 286,000 294,333
Fire, Marine & Casualty
Insurance (0.28%)
Malaysian National Reinsurance Berhad 89,000 112,890
Furniture & Home Furnishings (0.70%)
SHADDY CO. LTD. 8,700 282,194
General Industrial Machinery (1.00%)
Kyoritsu Electric Corp. 1,600 92,072
NIPPON THOMPSON CO. LTD. 21,000 173,162
Whatman PLC 6,500 136,189
401,423
Groceries & Related Products (0.25%)
Bon appetit Group AG 100 98,392
Hardware Stores (0.17%)
Kohnan Shoji Co. Ltd. 4,000 68,389
Highway & Street Construction (0.83%)
PT Komatsu Indonesia Tbk 1,183,000(a) 331,407
Holding Offices (0.84%)
Edipresse SA - Bearer 615 338,095
Hotels & Motels (0.57%)
Resorts World Berhad 80,000 229,474
Household Appliance Stores (0.38%)
Kojima Co. Ltd. 3,900 $ 152,411
Insurance Carriers, NEC (0.25%)
LIMIT PLC 42,000 100,860
Management & Public Relations (0.49%)
IPSOS 2,400(a) 197,493
Measuring & Controlling Devices (0.93%)
Mirae Co. 48,000 374,153
Medical Instruments & Supplies (1.90%)
Cochlear Ltd. 57,300 759,245
Metalworking Machinery (1.19%)
Mikron Holding AG 1,092 476,704
Miscellaneous Amusement, Recreation
Services (3.37%)
Aristocrat Leisure Ltd. 62,045 889,105
Snai SPA 42,100 459,946
1,349,051
Miscellaneous Business Services (0.92%)
GfK AG 8,962(a) 368,288
Miscellaneous Chemical Products (0.35%)
Milbon Co. Ltd. 1,500 139,221
Miscellaneous Electrical Equipment &
Supplies (0.50%)
Kaba Holding AG 220 199,284
Miscellaneous Fabricated Metal
Products (0.16%)
NADEX CO. LTD. 12,000 64,481
Miscellaneous Food & Kindred
Products (0.19%)
ROCK FIELD CO. LTD. 2,000 77,182
Miscellaneous Primary Metal
Products (0.00%)
YBM Magnex International, Inc. 13,300(a) 92
Miscellaneous Publishing (0.98%)
SHOEISHA Co. Ltd. 10 390,797
Miscellaneous Services, NEC (0.50%)
Lindeteves-Jacoberg Ltd. 130,000 199,759
Motion Picture Production &
Services (0.75%)
Endemol Entertainment Holding NV 5,600 299,448
Motorcycles, Bicycles & Parts (0.54%)
Ducati Motor Holding SPA 83,000(a) 214,217
Pens, Pencils, Office & Art
Supplies (1.18%)
The Sailor Pen Co. Ltd. 23,000 471,887
Periodicals (1.73%)
Informa Group PLC 48,800 $ 478,592
Paramount Publishing Group 1,572,000(a) 212,337
690,929
Personal Credit Institutions (0.03%)
Daiei OMC, Inc. 3,000(a) 10,258
Personnel Supply Services (1.16%)
N.I.C. Corp. 10,000 405,452
Unique International NV 2,970 61,025
466,477
Professional & Commercial
Equipment (2.15%)
Transiciel SA 4,300 516,756
Quality Healthcare Asia Ltd. 892,000(a) 344,247
861,003
Pulp Mills (0.98%)
Rottneros AB 298,000 394,169
Radio, Television & Computer
Stores (3.47%)
Distefora Holding AG 2,600(a) 628,587
Yamada Denki Co. Ltd. 7,000 759,123
1,387,710
Residential Building Construction (0.20%)
Urban Corp. 2,000 80,113
Sanitary Services (0.90%)
De Sammensluttede Vognmand AS 3,800 360,201
Security Brokers & Dealers (0.82%)
Dongwon Securities Co. 7,000 151,395
O.S.K. Holdings Berhad 116,000 99,516
O.S.K. Holdings Berhad Rights 29,000(a) 1,170
Tokai Maruman Securities Co. Ltd. 11,000 76,303
328,384
Special Industry Machinery (1.57%)
Chen Hsong Holdings Ltd. 508,000 133,968
Neopost SA 9,130(a)(b) 382,055
SEZ Holding AG 200 111,324
627,347
Telephone Communication (7.49%)
Esat Telecom Group ADR 5,700(a) 521,550
Microcell Telecommunications, Inc. 11,000(a) 360,016
Net Insight AB, Series B 6,933(a) 333,543
One.Tel Ltd. 241,000 370,584
PowerLan Ltd. 592,000 573,305
Versatel Telecom International NV 23,900(a) 838,425
2,997,423
Trusts (0.16%)
NHP PLC 27,489 63,133
Variety Stores (1.57%)
Buecher.de AG 8,200(a) 228,485
Ricardo.de AG 2,850(a) 335,646
THANKS JAPAN CORP. 4,000 66,435
630,566
Water Transportation Services (0.12%)
Johor Port Berhad 108,000 47,463
Total Common Stocks 37,799,410
Principal
Amount Value
Commercial Paper (4.50%)
Personal Credit Institutions (4.50%)
Associates First Capital Corp.;
4.00%; 1/3/2000 $1,800,000 $1,800,000
Total Portfolio Investments (98.90%) 39,599,410
Cash and receivables, net of liabilities (1.10%) 440,364
Total Net Assets (100.00%) $40,039,774
(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 $5,756,189 14.54%
Austria 353,732 0.89
Belgium 5 0.00
Canada 1,997,231 5.04
Denmark 908,690 2.30
Finland 2,150,265 5.43
France 2,583,490 6.52
Germany 1,541,638 3.89
Hong Kong 984,885 2.49
Indonesia 619,294 1.56
Ireland 843,535 2.13
Italy 674,163 1.70
Japan 6,603,283 16.68
Korea, Republic of 1,315,592 3.32
Malaysia 630,217 1.59
Netherlands 1,198,898 3.03
New Zealand 107,377 0.27
Norway 280,019 0.71
Singapore 1,280,549 3.23
Spain 345,819 0.87
Sweden 1,469,568 3.71
Switzerland 2,426,343 6.13
Taiwan, Province of China 814,804 2.06
United Kingdom 2,913,824 7.36
United States 1,800,000 4.55
Total $39,599,410 100.00%
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
LARGECAP GROWTH ACCOUNT
Shares
Held Value
Common Stocks (96.99%)
Air Transportation, Scheduled (1.05%)
Southwest Airlines Co. 4,585 $ 74,220
Beverages (1.38%)
Anheuser-Busch Cos., Inc. 1,375 97,453
Cable & Other Pay TV Services (6.02%)
Cablevision Systems Corp., Class A 1,675(a) 126,463
Comcast Corp. 5,925 297,731
424,194
Commercial Banks (2.50%)
Bank of New York Co., Inc 4,400 176,000
Communications Equipment (1.65%)
Lucent Technologies, Inc. 1,550 115,959
Communications Services, NEC (2.29%)
Nextel Communications, Inc. 1,565(a) 161,391
Computer & Data Processing
Services (6.66%)
Microsoft Corp. 1,600(a) 186,800
Sun Microsystems, Inc. 3,650(a) 282,647
469,447
Computer & Office Equipment (11.07%)
Cisco Systems, Inc. 3,100(a) 332,088
Dell Computer Corp. 3,825(a) 195,075
EMC Corp. 1,865(a) 203,751
Pitney Bowes, Inc. 1,015 49,037
779,951
Department Stores (1.67%)
Wal-Mart Stores, Inc. 1,700 117,512
Drugs (2.25%)
Schering-Plough Corp. 2,050 86,485
Warner-Lambert Co. 875 71,695
158,180
Electric Services (2.49%)
Enron Corp. 3,950 175,281
Electronic Components &
Accessories (4.03%)
Linear Technology Corp. 2,625 187,852
Texas Instruments, Inc. 990 95,906
283,758
Federal & Federally Sponsored
Credit (1.33%)
Federal National Mortgage
Association 1,500 93,656
General Industrial Machinery (1.38%)
Tyco International Ltd. 2,500 97,188
Hotels & Motels (1.27%)
MGM Grand, Inc. 1,775(a) 89,305
Household Appliances (3.84%)
General Electric Co. 1,750 $ 270,812
Lumber & Other Building
Materials (2.30%)
Home Depot, Inc. 2,363 161,979
Miscellaneous Shopping Goods
Stores (1.25%)
Staples, Inc. 4,240(a) 87,980
Motion Picture Production &
Services (10.91%)
AT&T Corp. - Liberty Media Group,
Class A 3,050(a) 173,088
Time Warner, Inc. 4,700 340,456
Viacom, Inc., Class B 4,225(a) 255,348
768,892
Personal Credit Institutions (2.43%)
American Express Co. 1,030 171,237
Retail Stores, NEC (1.68%)
Costco Wholesale Corp. 1,300(a) 118,625
Savings Institutions (1.59%)
Citigroup, Inc. 2,012 111,792
Security Brokers & Dealers (3.67%)
Charles Schwab Corp. 1,900 72,913
Morgan Stanley Dean Witter & Co. 1,300 185,575
258,488
Soap, Cleaners & Toilet Goods (0.74%)
Colgate-Palmolive Co. 800 52,000
Special Industry Machinery (6.56%)
Applied Materials, Inc. 1,875(a) 237,539
ASM Lithography Holdings NV 1,975(a) 224,656
462,195
Telephone Communication (13.44%)
Nokia Corp. ADR, Class A 2,325 441,750
Sprint PCS Group 1,890(a) 193,725
Telefonica SA Sponsored ADR 2,345(a) 184,815
Vodafone Group PLC ADR 2,550 126,225
946,515
Water Transportation of
Passengers (1.54%)
Carnival Corp. 2,275 108,773
Total Portfolio Investments (96.99%) 6,832,783
Cash and receivables, net of liabilities (3.01%) 211,848
Total Net Assets (100.00%) $7,044,631
(a) Non-income producing security - No dividend paid during the past twelve
months.
MICROCAP ACCOUNT
Shares
Held Value
Common Stocks (91.45%)
Advertising (0.75%)
Penton Media, Inc. 2,000 $ 48,000
Beverages (0.79%)
American National Can Group, Inc. 3,900 50,700
Blast Furnace & Basic Steel
Products (0.88%)
Titan International Inc. 8,700 56,550
Broadwoven Fabric Mills, Cotton (1.77%)
Burlington Industries, Inc. 28,400(a) 113,600
Colleges & Universities (3.35%)
Career Education Corp. 5,600(a) 214,900
Commercial Banks (4.40%)
Bancwest Corporation 2,800 54,600
Colonial Bancgroup, Inc. 5,200 53,950
Pacific Century Financial Corp. 6,400 119,600
Susquehana Bancshares 3,400 53,975
282,125
Computer & Data Processing
Services (2.51%)
GTECH Holdings Corp. 2,100(a) 46,200
Maxtor Corp. 2,000(a) 14,500
Mentor Graphics Corp. 7,600(a) 100,225
160,925
Computer & Office Equipment (1.66%)
Neomagic Corp. 3,000(a) 32,812
Quantum Corp.-Hard Disk 4,600(a) 31,913
Valmont Industries, Inc. 2,600 41,762
106,487
Crude Petroleum & Natural Gas (1.59%)
Swift Energy Co. 8,900(a) 102,350
Deep Sea Foreign Transportation of
Freight (1.79%)
Teekay Shipping Corp. 7,200 114,750
Drugs, Proprietaries & Sundries (0.69%)
Bergen Brunswig 5,300 44,056
Eating & Drinking Places (1.69%)
Morton's Restaurant Group, Inc. 7,000(a) 108,500
Electric Services (2.33%)
Bangor Hydro-Electric Co. 1,800 29,362
Public Service Co. of New Mexico 7,400 120,250
149,612
Electrical Industrial Apparatus (2.19%)
UCAR International, Inc. 7,900(a) 140,719
Electronic Components &
Accessories (5.60%)
General Semiconductor, Inc. 13,000(a) $ 184,437
Hutchinson Technology, Inc. 4,800(a) 102,000
Memc Electronic Materials, Inc. 3,200(a) 39,200
Vishay Intertechnology, Inc. 1,075(a) 33,997
359,634
Elementary & Secondary Schools (0.91%)
ITT Educational Services 3,800(a) 58,663
Engineering & Architectural
Services (0.73%)
Stone & Webster, Inc. 2,800 47,075
Farm & Garden Machinery (1.76%)
Agco Corp. 8,400 112,875
Fire, Marine & Casualty
Insurance (4.35%)
Pxre Group Ltd. 13,400 174,199
Zenith National Insurance Corp. 5,100 105,188
279,387
Freight Transportation
Arrangement (1.65%)
Hub Group Inc., Class A 5,300(a) 106,000
Gas Production & Distribution (0.85%)
Indiana Energy, Inc. 1,500 26,625
Laclede Gas Co. 1,300 28,112
54,737
Groceries & Related Products (1.41%)
Fleming Cos., Inc. 8,800 90,200
Health & Allied Services, NEC (0.69%)
Radiologix, Inc. 10,100(a) 44,188
Hotels & Motels (1.74%)
Prime Hospitality Corp. 12,700(a) 111,919
Industrial Machinery, NEC (2.12%)
Denison International PLC 13,300(a) 136,325
Industrial Organic Chemicals (1.58%)
Methanex Corp. 38,600(a) 101,325
Mailing, Reproduction,
Stenographic (1.85%)
Advo, Inc. 5,000(a) 118,750
Measuring & Controlling Devices (0.70%)
Varian, Inc. 2,000(a) 45,000
Medical & Dental Laboratories (0.24%)
Quest Diagnostics, Inc. 500(a) 15,281
Medical Instruments & Supplies (1.93%)
Haemonetics Corp. 5,200(a) 123,825
Medical Services & Health
Insurance (1.27%)
Foundation Health Systems, Inc.,
Class A 8,200(a) 81,488
Miscellaneous Chemical Products (1.54%)
Millenium Chemicals, Inc. 5,000 $ 98,750
Miscellaneous Investing (4.91%)
Alexandria Real Estate 1,600 50,900
Avalonbay Community, Inc 800 27,450
Centerpoint Properties 1,300 46,637
Cousins Properties, Inc. 900 30,544
Prentiss Property Trust 2,100 44,100
Reckson Associates Realty Corp. 1,600 32,800
RFS Hotel Investors, Inc. 5,900 61,581
Storage USA, Inc. 700 21,175
315,187
Miscellaneous Manufacturers (1.35%)
Lydall, Inc. 13,100(a) 86,788
Miscellaneous Textile Goods (1.47%)
Belden, Inc. 4,500 94,500
Newspapers (2.69%)
Lee Enterprises, Inc. 2,800 89,425
Media General, Inc. Class A 1,600 83,200
172,625
Non-Ferrous Foundries (Casting) (1.50%)
Wolverine Tube, Inc. 6,800(a) 96,050
Nursing & Personal Care
Facilities (2.15%)
Beverly Enterprises, Inc. 31,600(a) 138,250
Personnel Supply Services (0.71%)
Modis Professional Services, Inc. 3,200(a) 45,600
Petroleum Refining (1.18%)
Valero Energy Corp. 3,800 75,525
Real Estate Operators & Lessors (2.78%)
Catellus Devevelopment Corp. 2,300(a) 29,469
Insignia/ESG Holdings, Inc. 6,266(a) 54,436
LNR Property Corp. 2,600 51,675
Trammell Crow Company 3,700(a) 43,012
178,592
Retail Stores, NEC (0.88%)
Brookstone, Inc. 3,200(a) 56,200
Rubber & Plastics Footwear (0.92%)
Reebok International Ltd. 7,200(a) 58,950
Savings Institutions (1.67%)
Community First Bankshares, Inc. 2,200 34,650
Sovereign Bancorp, Inc. 9,700 72,295
106,945
Secondary Non-Ferrous Metals (1.26%)
Ispat International NV 5,000 80,625
Security & Commodity Services (1.29%)
Blackrock, Inc. 4,800(a) 82,500
Special Industry Machinery (4.69%)
Milacron, Inc. 6,000 $ 92,250
Unova, Inc. 5,300 68,900
Varian Medical Systems, Inc. 4,700(a) 140,119
301,269
Surety Insurance (1.90%)
ESG Re Ltd. 13,400 92,962
Radian Group, Inc. 606 28,937
121,899
Trucking & Courier Services, Except
Air (1.27%)
Landstar System, Inc. 1,900(a) 81,344
Trusts (0.43%)
Allied Capital Corp. 1,500 27,469
Watches, Clocks, Watchcases &
Parts (1.09%)
Movado Group, Inc. 3,200 69,800
Total Portfolio Investments (91.45%) 5,868,814
Cash and receivables, net of liabilities (8.55%) 548,854
Total Net Assets (100.00%) $6,417,668
(a) Non-income producing security - No dividend paid during the past twelve
months.
MIDCAP ACCOUNT
Shares
Held Value
Common Stocks (97.08%)
Accounting, Auditing &
Bookkeeping (1.77%)
Paychex, Inc. 115,850 $ 4,634,000
Business Credit Institutions (1.00%)
C.I.T. Group, Inc., Class A 124,700 2,634,287
Commercial Banks (4.59%)
Associated Banc Corp 100,083 3,427,843
North Fork Bancorp., Inc. 252,420 4,417,350
Peoples Heritage Financial
Group, Inc. 125,800 1,894,863
Princeton National Bancorp., Inc. 53,757 598,047
Summit Bancorp. 55,250 1,692,031
12,030,134
Computer & Data Processing
Services (20.55%)
Cadence Design Systems, Inc. 251,400(a) 6,033,600
Citrix Systems, Inc. 21,000(a) 2,583,000
Data Return Corp. 69,644(a) 3,725,954
ICG Communications, Inc. 86,000(a) 1,612,500
IMS Health, Inc. 194,400 5,285,250
Legato Systems, Inc. 76,200(a) 5,243,512
Splitrock Services, Inc. 252,200(a) 5,012,475
Sungard Data Systems, Inc. 217,800(a) 5,172,750
Synopsys, Inc. 103,100(a) 6,881,925
Veritas Software Corp. 86,400(a) 12,366,000
53,916,966
Computer & Office Equipment (5.41%)
Ceridian Corp. 133,300(a) $ 2,874,281
Comverse Technology, Inc. 42,500(a) 6,151,875
Lexmark International 57,000(a) 5,158,500
14,184,656
Credit Reporting & Collection (1.13%)
Equifax, Inc. 125,400 2,954,738
Crude Petroleum & Natural Gas (2.03%)
Devon Energy Corp. 80,600 2,649,725
Newfield Exploration Co. 100,000(a) 2,675,000
5,324,725
Drugs (6.36%)
Forest Laboratories, Inc. 87,500(a) 5,375,781
Genzyme Corp. 118,860(a) 5,348,700
Pharmacia & Upjohn, Inc. 59,600 2,682,000
Watson Pharmaceuticals 92,000(a) 3,294,750
16,701,231
Electrical Industrial Apparatus (1.83%)
American Power Conversion 182,400(a) 4,810,800
Electronic Components &
Accessories (9.50%)
Altera Corp. 102,000(a) 5,055,375
DII Group, Inc. 53,400(a) 3,789,731
Flextronics International, Ltd. 56,400 2,594,400
Jabil Circuit, Inc. 55,300(a) 4,036,900
Linear Technology Corp 33,300 2,383,031
Maxim Integrated Products 42,000(a) 1,981,875
Novellus Systems, Inc. 29,500(a) 3,614,672
Xilinx, Inc. 32,400(a) 1,473,188
24,929,172
Fabricated Rubber Products, NEC (0.46%)
Weatherford International 30,200(a) 1,206,113
Family Clothing Stores (5.36%)
Abercrombie & Fitch Co. 193,000(a) 5,150,687
American Eagle Outfitters, Inc. 64,200(a) 2,889,000
Ross Stores, Inc. 162,600 2,916,637
TJX Cos., Inc. 151,700 3,100,369
14,056,693
General Industrial Machinery (2.58%)
Pentair, Inc. 58,000 2,233,000
Roper Industries,Inc 120,100 4,541,281
6,774,281
Hose, Belting, Gaskets & Packing (0.00%)
Mark IV Industries 1 18
Hospitals (0.88%)
Universal Health Services, Inc.,
Class B 63,800(a) 2,296,800
Hotels & Motels (3.65%)
Four Seasons Hotel, Inc. 85,400 4,547,550
Marriott International, Inc.,
Class A 159,700 5,040,531
9,588,081
Household Appliances (1.50%)
Maytag Corp. 81,900 3,931,200
Investment Offices (1.08%)
Amvescap PLC Sponsored ADR 50,020 2,826,130
Measuring & Controlling Devices (2.48%)
ISCO, Inc. 1(a) $ 3
Millipore Corp. 86,700 3,348,787
Teradyne, Inc. 47,800(a) 3,154,800
6,503,590
Medical Instruments & Supplies (2.19%)
Becton, Dickinson & Co. 131,300 3,512,275
Boston Scientific Corp. 101,900(a) 2,229,063
5,741,338
Medical Service & Health
Insurance (1.59%)
Torchmark Corp. 70,900 2,060,531
United Healthcare Corp. 39,800 2,114,375
4,174,906
Miscellaneous Business Services (3.38%)
Concord EFS, Inc. 122,400(a) 3,151,800
Convergys Corp. 169,700(a) 5,218,275
Webvan Group, Inc. 29,851(a) 492,542
8,862,617
Miscellaneous Shopping Goods
Stores (1.65%)
Zale Corp. 89,600(a) 4,334,400
Oil & Gas Field Services (0.90%)
Diamond Offshore Drilling 77,600 2,371,650
Plumbing, Heating &
Air-Conditioning (0.07%)
Apogee Enterprises, Inc. 35,600 180,225
Savings Institutions (1.90%)
TCF Financial Corp. 200,400 4,984,950
Telephone Communication (10.45%)
Exodus Communications, Inc 25,300(a) 2,246,956
Intermedia Communications, Inc. 152,800(a) 5,930,550
McLeodUSA, Inc. 127,500(a) 7,506,562
Nextlink Communications 23,700(a) 1,968,581
RCN Corp. 94,800(a) 4,597,800
Tritel, Inc. 42,000(a) 1,330,875
Winstar Communications, Inc. 51,400(a) 3,848,575
27,429,899
Variety Stores (1.81%)
Family Dollar Stores 290,600 4,740,413
Women's & Misses' Outerwear (0.98%)
Jones Apparel Group, Inc. 94,962(a) 2,575,841
Total Common Stocks 254,699,854
Principal
Amount Value
Commercial Paper (2.30%)
Personal Credit Institutions (2.30%)
Investment in Joint Trade Account,
Associates Corp.;
5.00%; 1/3/00 $6,030,277 $ 6,030,277
Total Portfolio Investments (99.38%) 260,730,131
Cash and receivables, net of liabilities (0.62%) $ 1,619,694
Total Net Assets (100.00%) $262,349,825
(a) Non-income producing security - No dividend paid during the past twelve
months.
MIDCAP GROWTH ACCOUNT
Shares
Held Value
Common Stocks (96.10%)
Advertising (0.89%)
Young & Rubicam, Inc. 1,800 $ 127,350
Air Transportation, Scheduled (0.38%)
Alaska Air Group, Inc. 1,550(a) 54,444
Automotive Rentals, No Drivers (1.23%)
Hertz Corp., Inc. 3,500 175,438
Blast Furnace & Basic Steel
Products (0.25%)
AK Steel Holding Corp. 1,900 35,862
Cement, Hydraulic (0.38%)
Centex Construction Products, Inc. 1,400 54,600
Combination Utility Services (1.86%)
Constellation Energy Group, Inc. 2,200 63,800
KeySpan Corp. 2,950 68,403
L G & E Energy Corp. 2,400 41,850
Northern States Power Co. 2,400 46,800
Sierra Pacific Resources 2,548 44,112
264,965
Commercial Banks (5.71%)
Associated Banc Corp. 2,100 71,925
City National Corp. 3,600 118,575
Cullen Frost Bankers 2,600 66,950
First Tennessee National Corp. 3,150 89,775
Mercantile Bancshares Corp. 3,400 108,588
North Fork Bancorp., Inc. 6,100 106,750
Pacific Century Financial Corp. 3,600 67,275
Union Planters Corp. 3,100 122,256
Unionbancal Corp. 1,600 63,100
815,194
Communications Equipment (1.71%)
RF Micro Devices, Inc. 2,000(a) 136,875
Sawtek, Inc. 1,600(a) 106,500
243,375
Computer & Data Processing
Services (14.89%)
Check Point Software Technologies, Ltd.1,000(a) 198,750
Compuware Corp. 3,450(a) 128,513
DST Systems, Inc. 1,050(a) 80,128
Extreme Networks, Inc. 1,400(a) $ 116,900
IXL Enterprises, Inc. 2,200(a) 122,100
Legato Systems, Inc. 1,500(a) 103,219
Proxicom, Inc. 1,000(a) 124,313
Rational Software Corp. 1,600(a) 78,600
Razorfish, Inc. 1,000(a) 95,125
Redback Networks 800(a) 142,000
Symantec Corp. 1,600(a) 93,800
Synopsys, Inc. 1,100(a) 73,425
US Web Corp. 2,200(a) 97,762
Verisign, Inc. 1,000(a) 190,750
VERITAS Software Corp. 2,550(a) 364,969
Vignette Corp. 700(a) 114,100
2,124,454
Computer & Office Equipment (0.70%)
Lexmark International Group, Inc., Class A1,100(a) 99,550
Crude Petroleum & Natural Gas (0.58%)
Vastar Resources, Inc. 1,400 82,600
Department Stores (0.69%)
BJ's Wholesale Club, Inc. 2,700(a) 98,550
Drugs (5.70%)
Biochem Pharma, Inc. 3,250(a) 70,687
Biogen, Inc. 3,700(a) 312,650
Chiron Corp. 3,500(a) 148,313
Medimmune, Inc. 1,700(a) 281,988
813,638
Eating & Drinking Places (0.74%)
Bob Evans Farms, Inc. 2,750 42,453
Brinker International, Inc. 2,600(a) 62,400
104,853
Electric Services (3.99%)
Allegheny Energy, Inc. 3,700 99,669
DTE Energy Co. 3,200 100,400
Energy East Corp. 4,500 93,656
GPU, Inc. 2,750 82,328
Oge Energy Corp. 4,600 87,400
Pinnacle West Capital Corp. 2,000 61,125
TECO Energy, Inc. 2,400 44,550
569,128
Electrical Industrial Appartaus (0.48%)
American Power Conversion 2,600(a) 68,575
Electronic Components &
Accessories (9.17%)
Altera Corp. 4,800(a) 237,900
Helix Technology Corp. 1,500 67,219
Jabil Circuit, Inc. 2,100(a) 153,300
Linear Technology Corp. 2,200 157,437
Maxim Integrated Products, Inc. 7,100(a) 335,031
Sanmina Corp. 1,850(a) 184,769
Vitesse Semiconductor Corp. 3,300(a) 173,044
1,308,700
Elementary & Secondary Schools (0.50%)
Devry, Inc. 3,800(a) 70,775
Engines & Turbines (0.89%)
Briggs & Stratton Corp. 1,450 77,756
Brunswick Corp. 2,200 48,950
126,706
Family Clothing Stores (2.32%)
Abercrombie & Fitch Co. 3,350(a) $ 89,403
Ross Stores, Inc. 7,050 126,459
TJX Cos., Inc. 5,600 114,450
330,312
Fire, Marine & Casualty
Insurance (0.43%)
Mutual Risk Management Ltd. 2,400 40,350
Renaissance Holdings Ltd. 500 20,438
60,788
Forest Products (0.28%)
Georgia Timber Group 1,600 39,400
Gas Production & Distribution (1.49%)
Nicor, Inc. 1,900 61,750
Peoples Energy Corp. 2,900 97,150
Questar Corp. 3,600 54,000
212,900
Groceries & Related Products (0.69%)
SUPERVALU, Inc. 2,600 52,000
U.S. Foodservice, Inc. 2,750(a) 46,062
98,062
Guided Missiles, Space Vehicles &
Parts (0.42%)
Cordant Technologies, Inc. 1,800 59,400
Health & Allied Services (0.58%)
Lincare Holdings, Inc. 2,400(a) 83,250
Holding Offices (0.65%)
NStar 2,300 93,150
Hospitals (1.32%)
Health Management Association, Inc. 8,200(a) 109,675
Universal Health Services, Inc.,
Class B 2,200(a) 79,200
188,875
Hotels & Motels (1.03%)
MGM Grand, Inc. 1,800(a) 90,562
Park Place Entertainment 4,500(a) 56,250
146,812
Household Furniture (1.14%)
Furniture Brands International, Inc. 4,100(a) 90,200
Leggett & Platt, Inc. 3,350 71,816
162,016
Industrial Machinery (0.50%)
Parker-Hannifin Corp. 1,400 71,838
Iron Ores (0.12%)
Cleveland-Cliffs, Inc. 550 17,119
Life Insurance (0.96%)
Nationwide Financial Services, Inc. 2,200 61,463
Travelers Property Casualty Corp. 2,200 75,350
136,813
Measuring & Controlling Devices (2.20%)
Allergan, Inc. 3,000 149,250
Johnson Controls, Inc. 1,450 82,469
Waters Corp. 1,550(a) 82,150
313,869
Meat Products (0.57%)
Hormel Foods Corp. 2,000 81,250
Medical Instruments & Supplies (1.40%)
Biomet, Inc. 3,250 $ 130,000
VISX, Inc. 1,350(a) 69,862
199,862
Men's & Boys' Furnishings (0.60%)
Nautica Enterprises, Inc. 2,300(a) 26,019
V.F. Corp. 2,000 60,000
86,019
Miscellaneous Business Services (1.17%)
Convergys Corp. 5,450(a) 167,587
Miscellaneous Chemical Products (0.51%)
Cytec Industries, Inc. 3,150(a) 72,844
Miscellaneous Food & Kindred
Products (0.61%)
Universal Foods Corp. 4,250 86,594
Miscellaneous Manufacturers (0.46%)
Blyth Industries, Inc. 2,700(a) 66,319
Miscellaneous Personal Services (0.52%)
H&R Block, Inc. 1,700 74,375
Miscellaneous Plastics Products (0.54%)
Sealed Air Corp. 1,500(a) 77,719
Miscellaneous Shopping Goods
Stores (1.80%)
Dollar Tree Stores, Inc. 2,550(a) 123,516
Zale Corp. 2,750(a) 133,031
256,547
Motor Vehicles & Equipment (0.42%)
Navistar International Corp. 1,250(a) 59,219
Motorcycles, Bicycles & Parts (0.43%)
Harley Davidson, Inc. 950 60,859
Newspapers (2.33%)
A. H. Belo Corp. 3,350 63,859
Knight-Ridder, Inc. 1,050 62,475
Pulitzer, Inc. 800 32,250
The McClatchy Co., Class A 1,450 62,712
Washington Post Co., Class B 200 111,175
332,471
Office Furniture (0.39%)
Herman Miller, Inc. 2,400 55,200
Oil & Gas Field Services (2.59%)
Diamond Offshore Drilling, Inc. 3,200 97,800
Santa Fe International Corp. 2,100 54,337
Transocean Sedco Forex, Inc. 4,000 134,750
Ultramar Diamond Shamrock Corp. 3,650 82,809
369,696
Operative Builders (0.36%)
Centex Corp. 2,100 51,844
Paints & Allied Products (0.70%)
Dexter Corp. 1,000 39,750
Sherwin-Williams Co. 2,850 59,850
99,600
Paperboard Mills (0.56%)
Caraustar Industries, Inc. 3,300 $ 79,200
Passenger Transportation
Arrangement (1.26%)
Sabre Group Holdings, Inc. 3,500(a) 179,375
Personal Credit Institutions (0.53%)
Metris Cos., Inc. 2,100 74,944
Petroleum Refining (0.60%)
Murphy Oil Corp. 1,500 86,063
Preserved Fruits & Vegetables (0.51%)
Lancaster Colony Corp. 2,200 72,875
Primary Non-Ferrous Metal (0.47%)
Engelhard Corp. 3,550 67,006
Professional & Commercial
Equipment (0.19%)
Patterson Dental Co. 650(a) 27,706
Radio & Television Broadcasting (1.37%)
Hispanic Broadcasting Corp. 900(a) 82,997
Univision Communication 1,100(a) 112,406
195,403
Railroad Equipment (0.57%)
Trinity Industries, Inc. 2,850 81,047
Railroads (0.73%)
Kansas City Southern Industries, Inc. 1,400 104,475
Research & Testing Services (0.47%)
Quintiles Transnational Corp. 3,550(a) 66,341
Savings Institutions (0.90%)
Dime Bancorp, Inc. 3,650 55,206
Golden West Financial Corp. 2,200 73,700
128,906
Sawmills & Planning Mills (0.47%)
Louisiana Pacific Corp. 4,700 66,975
Security & Commodity Services (0.84%)
Price (T. Rowe) Associates, Inc. 3,250 120,047
Security Brokers & Dealers (0.89%)
Edwards (A.G.), Inc. 3,050 97,791
Paine Webber Group, Inc. 750 29,109
126,900
Soap, Cleaners & Toilet Goods (1.00%)
Dial Corp. 3,050 74,153
Estee Lauder Co., Class A 1,350 68,091
142,244
Surety Insurance (1.43%)
Radian Group, Inc. 1,450 $ 69,237
The PMI Group, Inc. 2,750 134,234
203,471
Telephone Communications (1.69%)
Centurytel, Inc. 1,300 61,587
Telephone and Data Systems, Inc. 700 88,200
United States Cellular, Inc. 900(a) 90,844
240,631
Trucking & Courier Services (0.74%)
CNF Transportation, Inc. 1,200 41,400
US Freightways Corp. 1,350 64,631
106,031
Water Transportation Services (0.61%)
Tidewater, Inc. 2,400 86,400
Total Portfolio Investments (96.10%) 13,707,406
Cash and receivables, net of liabilities (3.90%) 556,889
Total Net Assets (100.00%) $14,264,295
(a) Non-income producing security - No dividend paid during the past twelve
months.
MIDCAP VALUE ACCOUNT
Shares
Held Value
Common Stocks (92.08%)
Air Transportation, Scheduled (1.23%)
Continental Airlines, Inc. 1,600(a) $ 71,000
Aircraft & Parts (2.02%)
General Dynamics Corp. 2,200 116,050
Beverages (0.41%)
American National Can Group, Inc. 1,800 23,400
Blast Furnace & Basic Steel
Products (1.41%)
AK Steel Holding Corp. 4,300 81,163
Business Credit Institutions (1.85%)
Finova Group, Inc. 3,000 106,500
Combination Utility Services (0.50%)
Cinergy Corp. 1,200 28,950
Commercial Banks (2.38%)
FleetBoston Financial Corp. 2,000 69,625
Valley National Bancorp 2,410 67,480
137,105
Communications Equipment (1.48%)
Antec Corp. 200 7,300
Echostar Communication Corp. 800(a) 78,000
85,300
Computer & Data Processing (8.51%)
Cadence Design Systems, Inc. 5,200(a) $ 124,800
Comdisco, Inc. 4,900 182,525
Parametric Tech. Corp. 5,600(a) 151,550
Psinet, Inc. 500(a) 30,875
489,750
Computer & Office Equipment (3.26%)
Cabletron Systems, Inc. 2,500(a) 65,000
Ceridian Corp. 5,700(a) 122,906
187,906
Crude Petroleum & Natural Gas (4.17%)
Anadarko Petroleum Co. 2,300 78,487
Apache Corp. 1,900 70,181
USX-Marathon Group, Inc. 3,700 91,344
240,012
Department Stores (1.12%)
Harcourt General, Inc. 1,600 64,400
Drugs (1.88%)
Genzyme Corp. 2,400 108,000
Electric Services (2.19%)
Niagara Mohawk Holdings, Inc. 3,500(a) 48,781
Unicom Corp. 2,300 77,050
125,831
Electrical Industrial Apparatus (1.42%)
UCAR International, Inc. 4,600(a) 81,937
Electronic Components &
Accessories (1.26%)
National Semiconductor Corp. 1,700(a) 72,781
Federal & Federally Sponsored
Credit (0.95%)
SLM Holdings Corp. 1,300 54,925
Gas Production & Distribution (3.20%)
Dynegy, Inc. 3,100 75,369
Kinder Morgan, Inc. 1,900 38,356
Williams Cos., Inc. 2,300 70,294
184,019
Household Appliances (2.00%)
Maytag Corp. 2,400 115,200
Industrial Inorganic Chemicals (3.14%)
Praxair, Inc. 2,100 105,656
W.R. Grace & Co. 5,400(a) 74,925
180,581
Machinery, Equipment & Supplies (1.00%)
Grainger (W. W.), Inc. 1,200 57,375
Management & Public Relations (1.23%)
Dun & Bradstreet Corp. 2,400 70,800
Measuring & Controlling Devices (1.18%)
Eaton Corp. 500 36,313
Waters Corp. 600 31,800
68,113
Medical Instruments & Supplies (1.30%)
Becton, Dickinson & Co. 2,800 74,900
Medical Services & Health
Insurance (2.88%)
Aon Corp. 2,000 $ 80,000
Wellpoint Health Networks, Inc. 1,300 85,719
165,719
Miscellaneous General Merchandise
Stores (1.61%)
Consolidated Stores Corp. 5,700(a) 92,625
Miscellaneous Investing (0.98%)
Starwood Hotels & Resorts
Worldwide, Inc. 2,400 56,400
Miscellaneous Plastics Products,
NEC (0.54%)
Sealed Air Corp. 600(a) 31,088
Mortgage Bankers & Brokers (2.38%)
Countrywide Credit Industries, Inc. 2,900 73,225
IndyMac Mortgage Holdings, Inc. 5,000 63,750
136,975
Motion Picture Production &
Services (1.77%)
AT&T Corp.- Liberty Media Group 1,800 102,150
Motor Vehicles & Equipment (4.84%)
General Motors Corp., Class H 1,200(a) 115,200
Navistar International Corp. 1,400(a) 66,325
SPX Corp. 1,200(a) 96,975
278,500
Newspapers (2.97%)
A. H. Belo Corp. 5,900 112,469
Scripps Co. 1,300 58,256
170,725
Non-Ferrous Rolling & Drawing (1.20%)
Reynolds Metals Co. 900 68,963
Oil & Gas Field Services (2.43%)
Noble Drilling Corp. 1,800(a) 58,950
TransOcean Sedco Forex, Inc. 2,400 80,850
139,800
Paper & Allied Products (1.51%)
Bowater, Inc. 1,600 86,900
Paper & Paper Products (1.32%)
Smurfit-Stone Container Corp. 3,100(a) 75,950
Paper Mills (1.43%)
Fort James Corp. 3,000 82,125
Petroleum Refining (2.89%)
Coastal Corp. 2,700 95,681
Lyondell Chemical Co. 1,500 19,125
Tosco Corp. 1,900 51,656
166,462
Primary Non-Ferrous Metal (1.32%)
Engelhard Corp. 3,300 62,288
Phelps Dodge Corp. 200 13,425
75,713
Public Building & Related
Furniture (2.00%)
Lear Corp. 3,600(a) 115,200
Radio & Television Broadcasting (1.54%)
American Tower Corp., Class A 2,900(a) $ 88,631
Railroads (1.43%)
Kansas City Southern Industries, Inc. 1,100 82,087
Surety Insurance (3.33%)
Ace Ltd. 4,000 66,750
AMBAC Financial Group, Inc. 1,100 57,406
XL Cap Ltd., Class A 1,300 67,438
191,594
Telegraph & Other
Communications (0.48%)
Sonera Corp. - Sponsored ADR 400(a) 27,700
Telephone Communication (4.14%)
Global Crossing Ltd. 2,300(a) 115,000
Metromedia Fiber Network, Inc. 700(a) 33,556
WinStar Communications, Inc. 1,200(a) 89,850
238,406
Total Common Stocks 5,299,711
Preferred Stock (1.16%)
Newspapers (1.16%)
News Corp Ltd. PFD ADR 2,000 66,875
Total Portfolio Investments (93.24%) 5,366,586
Cash & receivables, net of liabilities (6.76%) 389,056
Total Net Assets (100.00%) $5,755,642
(a) Non-income producing security - No dividend paid during the past twelve
months.
MONEY MARKET ACCOUNT
Principal
Amount Value
Commercial Paper (85.73%)
Asset Backed Securities (18.19%)
CXC Inc.;
6.03%; 1/26/2000 $ 500,000 $ 498,074
5.85%; 2/2/2000 1,000,000 995,125
5.90%; 2/3/2000 1,000,000 994,919
6.00%; 2/3/2000 1,000,000 994,833
6.00%; 2/9/2000 500,000 496,917
6.02%; 2/15/2000 1,200,000 1,191,371
Corporate Asset Funding Co.;
5.82%; 1/21/2000 $ 500,000 $ 498,545
5.93%; 1/24/2000 1,000,000 996,541
5.88%; 2/11/2000 1,000,000 993,630
Corporate Receivables Corp.;
6.03%; 1/25/2000 1,000,000 996,315
5.90%; 1/27/2000 1,000,000 996,067
5.93%; 1/27/2000 500,000 498,027
5.98%; 2/7/2000 650,000 646,221
5.87%; 2/14/2000 500,000 496,576
6.00%; 3/10/2000 1,000,000 988,833
Quincy Capital Corp.;
6.65%; 1/7/2000 750,000 749,446
6.80%; 1/14/2000 457,000 456,051
6.50%; 1/25/2000 570,000 567,736
6.30%; 2/9/2000 1,025,000 1,018,363
6.50%; 2/9/2000 450,000 446,994
6.60%; 2/9/2000 657,000 652,543
6.15%; 2/10/2000 1,000,000 993,508
Receivables Capital Corp.;
6.01%; 2/1/2000 500,000 497,579
5.96%; 1/12/2000 1,000,000 998,510
6.06%; 1/26/2000 1,400,000 1,394,646
6.12%; 2/4/2000 1,000,000 994,560
5.85%; 2/8/2000 350,000 347,953
5.88%; 2/10/2000 600,000 596,276
21,996,159
Business Credit Institutions (7.22%)
American Express Credit Corp.;
5.55%; 2/29/2000 1,000,000 991,213
CIT Group Holdings, Inc.;
6.01%; 1/4/2000 1,000,000 999,833
General Electric Capital Corp.;
5.40%; 1/12/2000 1,000,000 998,650
5.40%; 1/13/2000 1,000,000 998,500
4.90%; 1/20/2000 500,000 498,843
5.08%; 2/18/2000 125,000 124,189
5.84%; 5/11/2000 440,000 430,792
5.85%; 5/12/2000 100,000 97,888
5.75%; 6/12/2000 500,000 487,142
5.82%; 6/16/2000 350,000 340,664
5.75%; 8/25/2000 250,000 240,616
5.80%; 9/8/2000 550,000 527,936
John Deere Credit Group PLC
5.85%; 1/14/2000 1,000,000 998,212
6.07%; 2/8/2000 1,000,000 993,930
8,728,408
Commercial Banks (1.15%)
J.P. Morgan & Co., Inc.;
5.94%; 2/28/2000 1,000,000 990,760
5.78%; 3/6/2000 400,000 395,954
1,386,714
Commodity Contracts Brokers,
Dealers (0.88%)
Louis Dreyfus Corp.;
6.00%; 2/7/2000 1,075,000 1,068,729
Computer & Office Equipment (0.25%)
Xerox Credit Corp.;
5.11%; 3/21/2000 300,000 299,971
Crude Petroleum & Natural Gas (5.35%)
Chevron U.K. Investment PLC;
5.80%; 1/25/2000 $ 500,000 $ 498,228
5.80%; 2/2/2000 500,000 497,583
5.96%; 2/18/2000 500,000 496,192
5.79%; 3/2/2000 500,000 495,256
5.86%; 3/24/2000 350,000 345,385
Exxon Project Investment Corp.;
5.87%; 1/5/2000 1,070,000 1,069,651
5.90%; 1/7/2000 1,075,000 1,074,295
5.25%; 1/14/2000 1,000,000 998,396
5.25%; 1/20/2000 1,000,000 997,521
6,472,507
Crushed & Broken Stone (0.82%)
Vulcan Materials Co.;
5.87%; 2/29/2000 1,000,000 990,706
Department Stores (2.90%)
Sears Roebuck Acceptance Corp.;
6.05%; 1/14/2000 450,000 449,168
6.05%; 1/19/2000 1,000,000 997,311
6.15%; 1/27/2000 1,000,000 995,900
6.19%; 2/16/2000 1,075,000 1,066,867
3,509,246
Electric Services (5.55%)
Alliant Energy Corp.;
6.15%; 2/28/2000 1,000,000 990,433
Florida Power Corp.;
6.00%; 1/3/2000 1,000,000 1,000,000
5.97%; 1/6/2000 1,000,000 999,502
5.95%; 2/9/2000 1,000,000 993,885
Teco Finance, Inc.;
5.85%; 2/10/2000 500,000 496,913
5.60%; 2/25/2000 1,500,000 1,487,633
5.80%; 2/25/2000 750,000 743,596
6,711,962
Farm & Garden Machinery (1.99%)
Caterpillar Financial
Services Corp.;
6.50%; 3/17/2000 1,487,000 1,468,508
6.00%; 4/14/2000 950,000 933,850
2,402,358
Foreign Banks, Branches &
Agencies (1.03%)
Deutsche Bank Financial, Inc.;
6.02%; 1/5/2000 500,000 499,833
5.91%; 1/6/2000 750,000 749,630
1,249,463
Insurance Agents, Brokers &
Services (0.41%)
Marsh & McLennan Cos.;
6.05%; 1/28/2000 500,000 497,899
Investment Offices (4.70%)
Morgan Stanley Group, Inc.;
6.03%; 1/7/2000 750,000 749,497
6.08%; 1/10/2000 1,000,000 998,818
5.77%; 1/11/2000 1,500,000 1,498,077
5.77%; 1/12/2000 1,000,000 998,557
6.05%; 1/13/2000 500,000 499,160
6.10%; 2/18/2000 950,000 942,595
5,686,704
Life Insurance (3.59%)
American General Corp.;
5.88%; 1/4/2000 $1,000,000 $ 999,837
5.82%; 1/13/2000 350,000 349,434
5.90%; 2/17/2000 1,000,000 992,625
Safeco Credit Co., Inc.;
6.00%; 1/13/2000 1,000,000 998,333
6.05%; 1/13/2000 500,000 499,160
6.15%; 1/20/2000 500,000 498,548
4,337,937
Miscellaneous Food & Kindred
Products (0.41%)
Cargill, Inc.;
5.40%; 1/20/2000 500,000 498,725
Miscellaneous Investing (3.92%)
Delaware Funding Corp.;
6.12%; 1/10/2000 500,000 499,405
5.87%; 1/18/2000 500,000 498,777
5.95%; 1/18/2000 1,200,000 1,197,025
6.50%; 1/21/2000 500,000 498,375
6.00%; 1/24/2000 500,000 498,250
5.93%; 1/28/2000 450,000 448,147
5.78%; 2/11/2000 300,000 298,122
MLTC Funding, Inc.
6.10%; 1/24/2000 800,000 797,153
4,735,254
Miscellaneous Manufacturers (3.52%)
Dover Corp.;
6.05%; 1/10/2000 700,000 699,177
6.00%; 1/19/2000 1,000,000 997,333
6.50%; 1/19/2000 450,000 448,700
6.20%; 2/8/2000 1,125,000 1,118,025
6.25%; 2/16/2000 1,000,000 992,361
4,255,596
Mortgage Bankers & Brokers (0.83%)
Countrywide Home Loan, Inc.;
6.50%; 1/11/2000 1,000,000 998,656
Motor Vehicles & Equipment (1.54%)
Paccar Financial Corp.;
5.90%; 1/5/2000 875,000 874,713
5.98%; 3/23/2000 1,000,000 986,711
1,861,424
Personal Credit Institutions (6.01%)
American General Finance Corp.;
6.40%; 2/1/2000 925,000 920,231
Associates First Capital Corp.;
6.37%; 1/28/2000 750,000 746,682
6.10%; 2/16/2000 1,000,000 992,544
6.15%; 2/17/2000 1,000,000 992,313
Comoloco, Inc.;
5.78%; 2/14/2000 1,475,000 1,465,054
5.51%; 3/16/2000 210,000 207,654
5.28%; 3/17/2000 150,000 148,372
5.57%; 4/28/2000 250,000 245,513
5.76%; 7/26/2000 500,000 483,600
5.80%; 7/28/2000 350,000 338,328
5.71%; 8/11/2000 300,000 289,484
5.70%; 8/14/2000 450,000 434,040
7,263,815
Petroleum Refining (7.34%)
Equilon Enterprises LLC;
5.74%; 1/21/2000 $ 500,000 $ 498,565
5.72%; 1/18/2000 350,000 349,159
5.73%; 1/19/2000 250,000 249,363
5.75%; 1/19/2000 345,000 344,118
5.75%; 1/21/2000 650,000 648,131
5.70%; 2/1/2000 300,000 298,623
5.72%; 2/11/2000 279,000 277,271
5.71%; 2/23/2000 500,000 495,955
Koch Industries, Inc.;
4.50%; 1/3/2000 3,550,000 3,550,000
Motiva Enterprises, LLC;
5.78%; 1/18/2000 450,000 448,916
5.71%; 1/24/2000 500,000 498,335
6.10%; 2/1/2000 475,000 472,666
5.76%; 2/4/2000 750,000 746,160
8,877,262
Security Brokers & Dealers (7.72%)
Merrill Lynch & Co., Inc.;
5.90%; 1/20/2000 750,000 747,910
6.15%; 1/25/2000 635,000 632,614
6.10%; 1/26/2000 625,000 622,564
5.98%; 1/28/2000 1,000,000 995,847
5.90%; 1/31/2000 400,000 398,164
5.95%; 1/31/2000 1,200,000 1,194,447
5.79%; 6/15/2000 750,000 730,218
Salomon Smith Barney
Holdings, Inc.;
6.00%; 1/21/2000 700,000 697,900
6.01%; 1/31/2000 1,000,000 995,326
6.07%; 2/1/2000 1,000,000 995,110
5.90%; 2/4/2000 440,000 437,693
5.75%; 2/11/2000 500,000 496,885
6.18%; 2/15/2000 400,000 397,047
9,341,725
Telephone Communication (0.41%)
Bell Atlantic;
5.90%; 1/14/2000 500,000 499,099
Total Commercial Paper 103,670,319
Bonds (13.87%)
Beverages (0.29%)
PepsiCo, Inc. Notes;
6.80%; 5/15/2000 350,000 351,273
Business Credit Institutions (1.77%)
American Express Credit Corp.
Notes; 6.13%; 6/15/2000 167,000 167,471
Senior Notes; 6.50%; 8/1/2000 790,000 791,840
CIT Group Holdings, Inc.
Medium-Term Notes;
6.80%; 4/17/2000 150,000 150,312
Senior Notes;
5.00%; 10/6/2000 250,000 247,758
6.20%; 10/20/2000 410,000 409,677
6.13%; 12/15/2000 250,000 249,169
General Motors Acceptance Corp.
Notes; 6.65%; 5/24/2000 $ 125,000 $ 125,357
2,141,584
Commercial Banks (1.12%)
JP Morgan & Co., Inc.
Senior Notes;
6.13%; 10/2/2000 450,000 449,187
Norwest Corp.
Notes; 6.00%; 3/15/2000 236,000 236,273
Senior Notes;
6.75%; 5/12/2000 567,000 568,889
Norwest Financial, Inc. Notes;
5.13%; 4/15/2000 100,000 99,940
1,354,289
Computer & Office Equipment (0.33%)
Xerox Corp. Debentures;
9.75%; 3/15/2000 400,000 403,100
Miscellaneous Chemical Products (0.15%)
Dupont (E.I.) de Nemours Co.
Debentures; 9.15%; 4/15/2000 175,000 176,845
Miscellaneous Equipment Rental &
Leasing (0.87%)
International Lease Finance
Corp. Notes;
6.20%; 5/1/2000 750,000 751,532
6.63%; 8/15/2000 300,000 300,809
1,052,341
Personal Credit Institutions (8.82%)
American General Finance Corp.
Notes; 8.00%; 2/15/2000 150,000 150,397
7.25%; 4/15/2000 350,000 351,794
5.88%; 7/1/2000 800,000 799,079
Associates Corp. of North America
Notes; 6.00%; 3/15/2000 605,000 605,500
5.25%; 3/30/2000 200,000 199,607
Senior Notes;
9.13%; 4/1/2000 250,000 252,037
6.00%; 6/15/2000 141,000 140,886
6.25%; 9/15/2000 425,000 424,981
Avco Financial Services, Inc.
Notes;
5.50%; 4/1/2000 380,000 379,723
Commercial Credit Co. Notes;
6.00%; 4/15/2000 595,000 595,646
6.75%; 5/15/2000 140,000 140,406
5.75%; 7/15/2000 200,000 199,623
Ford Motor Credit Co. Notes;
8.38%; 1/15/2000 405,000 405,391
6.38%; 4/15/2000 1,685,000 1,688,170
6.38%; 10/6/2000 200,000 199,966
6.85%; 8/15/2000 1,484,000 1,490,461
Debentures;
9.50%; 4/15/2000 155,000 156,715
General Motors Acceptance Corp.
Debentures; 9.63%; 5/15/2000 350,000 354,694
Notes; 5.85% 4/20/2000 100,000 99,969
7.00%; 3/1/2000 320,000 320,763
9.38%; 4/1/2000 243,000 244,869
Household Finance Corp.
Notes; 6.38%; 6/30/2000 550,000 550,819
Senior Notes; 6.00%; 5/8/2000 700,000 700,038
Norwest Financial, Inc.
Senior Notes;
6.88%; 6/15/2000 215,000 215,367
10,666,901
Security Brokers & Dealers (0.52%)
Bear Stearns Cos., Inc.
Senior Notes;
6.75%; 8/15/2000 $ 375,000 $ 376,398
Merrill Lynch & Co. Notes;
6.38%; 7/18/2000 250,000 250,538
626,936
Total Bonds 16,773,269
Total Portfolio Investments (99.60%) 120,443,588
Cash and receivables, net of liabilities (0.40%) 480,122
Total Net Assets (100.00%) $120,923,710
REAL ESTATE ACCOUNT
Shares
Held Value
Common Stocks (98.75%)
Apartment REITs (22.90%)
Apartment Investment &
Management Co. 7,400 $ 294,612
Archstone Communities Trust 15,050 308,525
Avalonbay Communities, Inc. 9,300 319,106
BRE Properties, Inc. 4,400 99,825
Charles E. Smith
Residential Realty, Inc. 2,150 76,056
Equity Residential Properties Trust 12,200 520,788
Essex Property Trust, Inc. 6,500 221,000
Post Properties, Inc. 1,100 42,075
Walden Residential Properties, Inc. 24,800 536,300
2,418,287
Diversified REITs (3.87%)
Cousins Properties, Inc. 3,300 111,994
Excel Legacy Corp. 3,300(a) 10,931
Vornado Realty Trust 8,800 286,000
408,925
Factory Outlet REITs (1.58%)
Chelsea GCA Realty, Inc. 5,600 166,600
Hotel REITs (0.91%)
Hospitality Properties Trust 2,900 55,281
Host Marriott Corp. 5,000 41,250
96,531
Mall REITs (9.57%)
CBL & Associates Properties, Inc. 12,300 253,687
General Growth Properties, Inc. 1,200 33,600
Mills Corp. 14,700 262,762
Rouse Co. 2,900 61,625
Simon Property Group, Inc. 17,400 399,113
1,010,787
Manufactured Housing REITs (1.70%)
Chateau Properties 2,364 61,316
Manufactured Home Communities, Inc. 2,600 63,213
Sun Communities, Inc. 1,700 54,719
179,248
Office & Industrial REITs (40.67%)
AMB Property Corp. 23,900 $ 476,506
Arden Realty Group, Inc. 13,500 270,844
Bedford Property Investors 2,400 40,950
Boston Properties, Inc. 7,000 217,875
Cabot Industrial Trust 4,300 79,012
Centerpoint Properties Corp. 7,000 251,125
Cornerstone Properties 12,500 182,813
Duke-Weeks Realty Corp. 17,400 339,300
Equity Office Properties Trust 21,800 536,825
First Industrial Realty Trust, Inc. 3,700 101,519
Kilroy Realty Corp. 3,000 66,000
Liberty Property Trust 11,000 266,750
Mack-Cali Realty Corp. 6,400 166,800
Mission West Properties, Inc. 1,400 10,850
Prentiss Property Trust 3,900 81,900
Prologis Trust 22,980 442,365
Reckson Associates Realty Corp.,
Class B 9,410 216,448
SL Green Realty Corp. 2,300 50,025
Spieker Properties, Inc. 13,650 497,372
4,295,279
Self Storage REITs (4.83%)
Public Storage, Inc. 11,800 267,713
Storage USA, Inc. 8,000 242,000
509,713
Shopping Center REITs (12.72%)
Burnham Pacific Properties, Inc. 23,300 218,437
Federal Realty Investment Trust 3,900 73,369
First Washington Realty 1,100 20,556
JDN Realty Corp. 16,500 266,063
Kimco Realty Corp. 6,300 213,413
New Plan Excel Realty Trust 2,700 42,694
Pan Pacific Retail Properties, Inc. 4,500 73,406
Regency Realty Corp. 6,100 122,000
Weingarten Realty Investors 8,042 313,135
1,343,073
Total Common Stocks 10,428,443
Principal
Amount Value
Commercial Paper (0.00%)
Personal Credit Institutions (0.00%)
Investment in Joint Trade Account,
Associates Corp.; 4.00%; 1/3/2000 $294 $ 294
Total Portfolio Investments (98.75%) 10,428,737
Cash and receivables, net of liabilities (1.25%) 131,547
Total Net Assets (100.00%) $10,560,284
(a) Non-income producing security - No dividend paid during the past twelve
months.
SMALLCAP ACCOUNT
Shares
Held Value
Common Stocks (95.08%)
Apparel, Piece Goods & Notions (0.88%)
Mens Wearhouse, Inc. 7,800(a) $ 229,125
Beverages (0.82%)
Canandaigua Brands, Inc., Class A 4,200(a) 214,200
Blast Furnace & Basic Steel
Products (1.88%)
Carpenter Technology Corp. 9,200 252,425
Quanex Corp. 9,300 237,150
489,575
Colleges & Universities (0.85%)
Apollo Group, Inc. 11,000(a) 220,687
Commercial Banks (0.76%)
Cullen Frost Bankers 7,700 198,275
Commercial Printing (0.91%)
Mail-Well, Inc. 17,600(a) 237,600
Communications Equipment (2.66%)
Intervoice-Brite, Inc. 17,000(a) 402,156
Tekelec 13,000(a) 292,500
694,656
Computer & Data Processing
Services (12.91%)
Advanced Communications
Systems, Inc. 15,450(a) 295,481
Bindview Development Corp. 5,600(a) 278,250
Bisys Group, Inc. 3,400(a) 221,850
Ciber, Inc. 11,000(a) 302,500
Hypercom Corp. 29,400(a) 294,000
ICG Communications, Inc. 13,000(a) 243,750
Interactive Pictures Corp. 10,800(a) 251,775
Netegrity, Inc. 3,500(a) 199,281
Preview Systems, Inc. 4,100(a) 265,988
Quadramed Corp. 40,000(a) 348,750
Quintus Corp. 5,200(a) 238,550
Splitrock Services, Inc. 11,500(a) 228,563
SPSS, Inc. 8,000(a) 202,000
3,370,738
Computer & Office Equipment (0.95%)
Box Hill Systems Corp. 32,500(a) 160,469
Neomagic Corp. 8,000(a) 87,500
247,969
Construction & Related Machinery (0.62%)
JLG Industries, Inc. 10,200 161,925
Crude Petroleum & Natural Gas (0.98%)
Nuevo Energy Co. 13,700(a) 256,875
Drugs (3.62%)
Chirex, Inc. 6,700(a) 97,987
Geltex Pharmaceuticals, Inc. 13,200(a) 169,125
Inhale Therapeutic Systems, Inc. 6,300(a) 268,144
Matritech, Inc. 84,000(a) $ 278,250
Sangstat Medical Corp. 4,400(a) 130,900
944,406
Drugs, Proprietaries & Sundries (1.94%)
Amerisource Health Corp., Class A 17,900(a) 271,856
Bindley Western Industries, Inc. 15,500 233,469
505,325
Eating & Drinking Places (2.31%)
Morton's Restaurant Group, Inc. 9,700(a) 150,350
Papa John's International, Inc. 5,200(a) 135,525
Rubio's Restaurants, Inc. 17,000(a) 136,000
Ruby Tuesday, Inc. 10,000 181,875
603,750
Electric Services (1.71%)
Cleco Corp. 6,600 211,613
TNP Enterprises, Inc. 5,700 235,125
446,738
Electronic Components &
Accessories (6.29%)
Align-Rite International 9,500(a) 208,406
Corcord Communication 4,500(a) 199,687
DII Group, Inc. 3,600(a) 255,488
Etec Systems, Inc. 6,000(a) 269,250
Galileo Technology ADR 11,000(a) 265,375
Hadco Corp. 4,600(a) 234,600
Hutchinson Technology, Inc. 9,900(a) 210,375
1,643,181
Fabricated Structural Metal
Products (0.95%)
Aavid Thermal Technologies, Inc. 7,800(a) 191,588
Circor International, Inc. 5,450(a) 56,203
247,791
Family Clothing Stores (0.79%)
Pacific Sunwear of California, Inc. 6,450(a) 207,609
Fire, Marine & Casualty
Insurance (1.37%)
Horace Mann Educators 6,900 135,413
Selective Insurance Group, Inc. 13,000 223,437
358,850
Footwear, Except Rubber (0.93%)
Wolverine World Wide, Inc. 22,200 242,812
Gas Production & Distribution (1.57%)
Peoples Energy Corp. 5,900 197,650
Piedmont Natural Gas Co. 7,000 211,750
409,400
General Industrial Machinery (2.33%)
CVC, Inc. 16,200(a) 155,925
Kaydon Corp. 8,600 230,588
Regal-Beloit Corp. 10,800 222,750
609,263
Grain Mill Products (0.88%)
Ralcorp Holdings, Inc. 11,500(a) 229,281
Groceries & Related Products (0.76%)
Universal Corp. 8,700 198,469
Horticultural Specialties (0.70%)
Hines Horticulture, Inc. 21,600(a) 182,250
Hospitals (0.92%)
Universal Health Services, Inc.,
Class B 6,700(a) 241,200
Industrial Machinery (0.39%)
Industrial Distribution Group 31,300(a) $ 101,725
Jewelry, Silverware & Plated
Ware (1.07%)
Jostens, Inc. 11,500 279,594
Laundry, Cleaning & Garment
Services (0.74%)
Unifirst Corp. 15,300 193,162
Life Insurance (0.85%)
MONY Group, Inc. 7,600 221,825
Measuring & Controlling Devices (1.20%)
Integrated Measurement Systems, Inc. 22,200(a) 313,575
Meat Products (0.74%)
Michael Foods, Inc. 7,800 192,075
Medical Instruments & Supplies (2.64%)
ADAC Laboratories 21,100(a) 226,825
Focal, Inc. 40,000(a) 155,000
Hologic, Inc. 35,900(a) 206,425
Novoste Corp. 6,200(a) 102,300
690,550
Medical Service & Health
Insurance (0.99%)
Foundation Health Systems, Inc.,
Class A 26,000(a) 258,375
Men's & Boys' Clothing Stores (2.03%)
Hot Topic, Inc. 22,800(a) 530,100
Men's & Boys' Furnishings (1.09%)
Quiksilver, Inc. 18,400(a) 285,200
Metalworking Machinery (0.65%)
Riviera Tool Co. 44,100(a) 170,888
Miscellaneous Apparel & Accessory
Stores (0.34%)
The Buckle, Inc. 6,000(a) 88,875
Miscellaneous Business Services (1.57%)
Netratings, Inc. 8,500(a) 409,062
Miscellaneous Chemical Products (0.77%)
H. B. Fuller Co. 3600 201,375
Miscellaneous Converted Paper
Products (0.81%)
Shorewood Packaging Corp. 11,200 212,100
Miscellaneous Electrical Equipment &
Supplies (1.08%)
Rayovac Corp. 15,000(a) 283,125
Miscellaneous Equipment Rental &
Leasing (0.76%)
Rent-A-Center, Inc. 10,000(a) 198,125
Miscellaneous Fabricated Metal
Products (0.87%)
Watts Industries, Inc. 15,400 227,150
Miscellaneous General Merchandise
Stores (0.64%)
99 Cents Only Stores 4,400(a) $ 168,300
Miscellaneous Manufacturers (0.98%)
Russ Berrie & Co. 9,700 254,625
Miscellaneous Shopping Goods
Stores (1.00%)
Zale Corp. 5,400(a) 261,225
Miscellaneous Textile Goods (0.95%)
Kellwood Co. 12,700 246,856
Motor Vehicles & Equipment (1.53%)
Modine Manufacturing Co. 8,500 212,500
Motorcar Parts & Accessories 17,000(a) 18,063
United Auto Group, Inc. 19,000(a) 169,813
400,376
Motor Vehicles, Parts &
Supplies (0.34%)
Keystone Automotive Industries, Inc. 15,300(a) 89,887
New & Used Car Dealers (0.78%)
Lithia Motors, Inc., Class A 11,400(a) 203,775
Office Furniture (0.90%)
Kimball International,Inc., Class A 14,200 234,300
Oil & Gas Field Services (0.85%)
Pride International, Inc. 15,200(a) 222,300
Opthalmic Goods (0.50%)
TLC Laser Eye Center, Inc. 10,000(a) 130,625
Paints & Allied Products (0.56%)
RPM, Inc. 14,300 145,681
Personnel Supply Services (1.43%)
On Assignment, Inc. 6,800(a) 203,150
RemedyTemp, Inc. 8,900(a) 169,100
372,250
Petroleum Refining (0.81%)
Valero Energy Corp. 10,600 210,675
Railroad Equipment (0.81%)
Trinity Industries, Inc. 7,400 210,438
Retail Stores (0.94%)
The Children's Place Retail 15,000(a) 246,562
Rubber & Plastics Footwear (0.60%)
Vans, Inc. 12,700(a) 155,575
Savings Institutions (3.05%)
Commercial Federal Corp. 11,500 204,844
Community First Bankshares, Inc. 12,200 192,150
MAF Bancorp, Inc. 9,800 205,187
Reliance Bancorp, Inc. 5,600 193,200
795,381
Soap, Cleaners & Toilet Goods (1.96%)
Carter-Wallace, Inc. 12,500 224,219
Digene Corp. 16,500(a) 287,719
511,938
Social Services (0.61%)
Provantage Health Service 19,800(a) $ 158,400
Special Industry Machinery (1.38%)
Cymer, Inc. 3,000(a) 138,000
Kulicke & Soffa Industry, Inc. 5,200(a) 221,325
359,325
Sugar & Confectionery Products (0.45%)
Sherwood Brands, Inc., Class A 38,000(a) 118,750
Surety Insurance (0.79%)
Enhance Financial Services
Group, Inc. 12,700 206,375
Telephone Communication (1.19%)
Intermedia Communications, Inc. 8,000(a) 310,500
Trucking & Courier Services (0.78%)
Werner Enterprises, Inc. 14,500 203,906
Women's & Children's
Undergarments (0.86%)
Warnaco Group, Inc. 18,300 225,319
Women's Clothing Stores (0.51%)
Bebe Stores, Inc. 4,900(a) 132,300
Total Common Stocks 24,824,475
Principal
Amount Value
Commercial Paper (1.44%)
Personal Credit Institutions (1.44%)
Investment in Joint Trade Account,
Associates Corp. of North America;
4.00%; 1/3/2000 $376,423 $ 376,423
Total Portfolio Investments (96.52%) 25,200,898
Cash and receivables, net of liabilities (3.48%) 908,745
Total Net Assets (100.00%) $26,109,643
(a) Non-income producing security - No dividend paid during the past twelve
months.
SMALLCAP GROWTH ACCOUNT
Shares
Held Value
Common Stocks (89.16%)
Accounting, Auditing &
Bookkeeping (0.36%)
Profit Recovery Group
International, Inc. 5,325(a) $ 141,445
Advertising (1.43%)
TMP Worldwide, Inc. 4,000(a) 568,000
Blast Furnace & Basic Steel
Products (0.77%)
Maverick Tube Corp. 12,400(a) 306,125
Business Credit Institutions (0.48%)
Resource America, Inc. 24,150 190,181
Commercial Banks (0.46%)
Silicon Valley Bancshares 3,670(a) 181,665
Communications Equipment (5.72%)
Adaptive Broadband Corp. 4,800(a) 354,300
Aspect Communications, Inc 12,500(a) 489,062
Proxim, Inc. 8,600(a) 946,000
RF Micro Devices, Inc. 7,000(a) 479,063
2,268,425
Computer & Data Processing
Services (21.34%)
Agile Software Corp. 5,730(a) 1,244,753
Aspect Development, Inc. 7,800(a) 534,300
CBT Group PLC - ADR 15,100(a) 505,850
CMGI, Inc. 2,900(a) 802,937
Lycos, Inc. 800(a) 63,650
Macromedia, Inc. 10,920(a) 798,525
Mercury Interactive Corp. 5,500(a) 593,656
Metasolv Software, Inc. 5,810(a) 474,967
New Era of Networks, Inc. 13,600(a) 647,700
Primus Knowledge Solution 10,000(a) 453,125
Razorfish, Inc. 5,180(a) 492,748
Saga Systems, Inc. 7,300(a) 145,544
Sapient Corp. 4,000(a) 563,750
Spyglass, Inc. 8,350(a) 316,648
TSI International Software Ltd. 7,560(a) 428,085
USWeb Corp. 9,000(a) 399,938
8,466,176
Computer & Office Equipment (0.93%)
Computer Network Tech Corp. 16,000(a) 367,000
Crude Petroleum & Natural Gas (2.83%)
Basin Exploration, Inc. 13,150(a) 231,769
Devon Energy Corp. 6,400 210,400
Forest Oil Corp. 36,820(a) 485,564
Stone Energy Corp. 5,500(a) 195,937
1,123,670
Drugs (6.66%)
Biocryst Pharmaceuticals 27,000(a) 796,500
IDEC Pharmaceuticals 8,860(a) 870,495
Invitrogen Corp. 7,520(a) 451,200
Pharmacyclics, Inc. 12,700(a) 523,875
2,642,070
Drugs, Proprietaries & Sundries (2.95%)
Allscripts, Inc. 20,000(a) $ 880,000
Priority Healthcare Corp. 10,000(a) 289,375
1,169,375
Electric Services (0.76%)
Plug Power, Inc. 10,660(a) 301,145
Electronic Components &
Accessories (5.77%)
American Xtal Technology, Inc. 3,650(a) 63,647
Applied Micro Circuits 5,900(a) 750,775
Cree Research, Inc. 12,680(a) 1,082,555
Dupont Photomasks, Inc. 8,150(a) 393,237
2,290,214
Fish Hatcheries And Preseverves (0.14%)
Ebenx, Inc. 1,210(a) 54,753
Grocery Stores (1.69%)
Whole Foods Market, Inc. 14,500(a) 672,437
Health & Allied Services, NEC (0.54%)
Accredo Health, Inc. 7,000(a) 215,250
Legal Services (0.51%)
Pre-Paid Legal Services, Inc. 8,500(a) 204,000
Management & Public Relations (2.68%)
Diamond Technology Partners, Inc. 9,450(a) 812,109
Whitman-Hart, Inc. 4,700(a) 252,038
1,064,147
Medical & Dental Laboratories (0.30%)
IDEXX Lab, Inc. 7,450(a) 120,131
Medical Instruments & Supplies (0.68%)
Ventana Medical Systems 10,800(a) 268,650
Miscellaneous Business Services (0.57%)
Forrester Research, Inc. 3,300(a) 227,288
Miscellaneous Electrical
Equipment (1.98%)
Universal Electronics, Inc. 17,080(a) 785,680
Miscellaneous Shopping Goods
Stores (1.42%)
Michaels Stores, Inc. 19,710(a) 561,735
Miscellaneous Special Trade
Contractors (1.60%)
Dycom Industries, Inc. 14,375(a) 633,398
Mortgage Bankers & Brokers (0.24%)
Matrix Bancorp, Inc. 8,000(a) 96,000
Oil & Gas Field Services (2.53%)
Marine Drilling Co., Inc. 16,810(a) 377,175
Paradigm Geophysical Ltd. 3,250(a) 15,945
Patterson Energy, Inc. 10,000(a) 130,000
Precision Drilling Corp. 14,000(a) 359,625
Veritas DGC, Inc. 8,750(a) 122,500
1,005,245
Periodicals (0.29%)
Martha Stewart Living Omnimedia, Inc. 4,800(a) 115,200
Personal Credit Institutiions (0.73%)
Metris Companies, Inc. 8,100 $ 289,069
Radio & Television Broadcasting (9.39%)
Cumulus Media, Inc. 12,420(a) 630,315
Emmis Communications Corp. 7,200(a) 897,412
Radio One, Inc. 8,300(a) 763,600
Salem Communications, Class A 8,000(a) 181,000
SBS Broadcasting S.A. 14,600(a) 710,838
NBC Internet, Inc. 7,000(a) 540,750
3,723,915
Research & Testing Services (3.18%)(a)
Cephalon, Inc. 18,300(a) 632,494
Corporate Executive Board 8,810(a) 492,259
Maxygen 1,930(a) 137,030
1,261,783
Sanitary Services (0.28%)
Stericycle, Inc. 5,950(a) 111,934
Ship & Boat Building &
Repairing (0.34%)
Dril-Quip, Inc. 4,400(a) 133,650
Special Industry Machinery (6.49%)
Asyst Technologies, Inc. 9,200(a) 603,175
Brooks Automation, Inc. 9,650(a) 314,228
Cymer, Inc. 9,100(a) 418,600
PRI Automation, Inc. 18,480(a) 1,240,470
2,576,473
Telephone Communication (3.12%)
Research in Motion 9,600(a) 443,400
Viatel, Inc. 14,800(a) 793,650
1,237,050
Total Portfolio Investments (89.16%) 35,373,279
Cash and receivables, net of liabilities (10.84%) 4,301,902
Total Portfolio Investments (100.00%) $39,675,181
(a) Non-income producing security - No dividend paid during the past twelve
months.
SMALLCAP VALUE ACCOUNT
Shares
Held Value
Common Stocks (92.07%)
Accounting, Auditing &
Bookkeeping (0.06%)
Profit Recovery Group
International, Inc. 250(a) $ 6,641
Advertising (0.56%)
24/7 Media, Inc. 700(a) 39,375
Digital Impact, Inc. 300(a) 15,037
Webstakes.com, Inc. 400(a) 7,900
62,312
Asphalt Paving & Roofing
Materials (0.20%)
Elcor Corp. 750 $ 22,594
Bakery Products (0.74%)
Keebler Foods Co. 2,900(a) 81,563
Beauty Shops (0.26%)
Regis Corp. 1,500 28,312
Beverages (0.39%)
American National Can Group, Inc. 1,800 23,400
Beringer Wine Estates 500(a) 19,937
43,337
Business Credit Institutions (0.76%)
Heller Financial, Inc. 4,200 84,263
Cable & Other Pay TV Services (0.33%)
Insight Communications, Inc. 700(a) 20,738
Wink Communications, Inc. 100(a) 6,006
Worldgate Communications, Inc. 200(a) 9,512
36,256
Commercial Banks (3.87%)
BancorpSouth, Inc. 300 4,894
Capital Crossing Bank 700(a) 8,750
City National Corp. 1,200 39,525
Colonial Bancgroup, Inc. 7,200 74,700
Gold Banc Corp., Inc. 400 3,600
Hamilton Bancorp., Inc. 2,000(a) 35,500
National Commerce Bancorp 3,100 70,331
Pacific Century Financial Corp. 2,000 37,375
Prime Bancshares, Inc. 1,300 31,200
Republic Security Financial 4,200 30,056
Summit Bancshares, Inc. 2,700 49,950
Sun Bancorp., Inc. 1,750(a) 17,391
Westamerica Bancorp. 900 25,144
428,416
Commercial Sports (0.06%)
Boca Resorts, Inc. 700(a) 6,825
Communications Equipment (0.71%)
Advanced Fibre Communication, Inc. 900(a) 40,219
C-Cube Microsystems, Inc. 300(a) 18,675
Williams Communication Group, Inc. 700(a) 20,256
79,150
Communications Services, NEC (1.16%)
ITC Deltacom, Inc. 300(a) 8,287
L-3 Communications Holdings, Inc. 2,600(a) 108,225
World Access, Inc. 600(a) 11,550
128,062
Computer & Data Processing (6.80%)
Accrue Software, Inc. 200(a) 10,825
Aether Systems, Inc. 200(a) 14,325
Agency.com, Ltd. 300(a) 15,300
Agile Software Corp. 100(a) 21,723
Alloy Online, Inc. 700(a) 11,025
Alteon Websystems, Inc. 100(a) $ 8,775
Art Technology Group, Inc. 100(a) 13,000
Business Objects SA ADR 200(a) 26,725
Careinsite, Inc. 400(a) 32,200
C-Bridge Internet Solutions, Inc. 100(a) 4,862
Checkfree Holdings Corp. 200(a) 20,900
Clarent Corp. 100(a) 7,775
Digex, Inc. 400(a) 27,500
E.Piphany, Inc. 100(a) 22,313
Egain Communications Corp. 200(a) 7,550
Equant ADR 100(a) 11,200
Espeed, Inc., Class A 600(a) 21,338
eToys, Inc. 100(a) 2,625
Excalibur Technologies Corp. 200(a) 4,125
Exchange Applications, Inc. 100(a) 5,587
IDX Systems Corp. 300(a) 9,375
Informatica Corp. 100(a) 10,637
Informix Corp. 400(a) 4,550
Interleaf, Inc. 100(a) 3,363
Liberate Technologies, Inc. 100(a) 25,700
Liquid Audio, Inc. 100(a) 2,625
Looksmart, Ltd. 400(a) 10,800
Mediaplex, Inc. 400(a) 25,100
Medquist, Inc. 1,500(a) 38,719
Metasolv Software, Inc. 200(a) 16,350
MicroStrategy, Inc. 100(a) 21,000
Net Perceptions, Inc. 700(a) 29,400
Newgen Results Corp. 300(a) 3,169
Official Payments Corp. 200(a) 10,400
Ondisplay, Inc. 100(a) 9,087
Packeteer, Inc. 300(a) 21,300
pcOrder.com, Inc. 100(a) 5,100
Peregrine Systems, Inc. 100(a) 8,263
PNV.net, Inc. 1,400(a) 11,463
Preview Systems, Inc. 100(a) 6,487
Quokka Sports, Inc. 100(a) 1,312
Rainmaker Systems, Inc. 400(a) 8,100
Retek, Inc. 500(a) 37,625
Sanchez Computer Associates, Inc. 300(a) 12,356
Source Information Management Co. 1,000(a) 16,750
Technology Solutions Co. 800(a) 26,200
The 3DO Company 1,600(a) 14,550
Tumbleweed Communications Corp. 400(a) 33,900
Verio, Inc. 100(a) 4,619
VerticalNet, Inc. 200(a) 32,800
Watchguard Technologies, Inc. 100(a) 3,025
753,798
Computer & Office Equipment (0.37%)
VA Linux Systems, Inc. 200(a) 41,325
Construction & Related
Machinery (2.96%)
Cooper Cameron Corp. 3,200(a) 156,600
Manitowoc Co., Inc. 700 23,800
Smith International, Inc. 1,900(a) 94,406
Terex Corp. 1,900(a) 52,725
327,531
Crude Petroleum & Natural Gas (1.71%)
Devon Energy Corp. 2,200 72,325
Newfield Exploration Co. 4,100 109,675
Unit Corp. 900(a) 6,919
188,919
Cutlery, Handtools & Hardware (0.02%)
Jore Corp. 300(a) $ 2,344
Drugs (2.04%)
Biocryst Pharmaceuticals, Inc. 700(a) 20,650
Human Genome Sciences, Inc. 500(a) 76,313
IDEC Pharmaceuticals 300(a) 29,475
ILEX Oncology, Inc. 500(a) 12,062
Ligand Pharmaceuticals, Class B 2,100(a) 27,038
Medimmune, Inc. 75(a) 12,441
Millenium Pharmaceuticals 200(a) 24,400
SangStat Medical Corp. 700(a) 20,825
Triangle Pharmaceuticals, Inc. 200(a) 2,562
225,766
Drugs, Proprietaries & Sundries (0.60%)
Allscripts, Inc. 1,500(a) 66,000
Eating & Drinking Places (0.12%)
Papa John's International, Inc. 500(a) 13,031
Electric Services (2.28%)
CH Energy Group, Inc. 2,900 95,700
Cleco Corp. 4,800 153,900
Rare Medium Group, Inc. 100(a) 3,413
253,013
Electrical Goods (0.20%)
Act Manufacturing, Inc. 600(a) 22,500
Electrical Industrial Apparatus (0.36%)
National R V Holdings 2,100(a) 40,425
Electrical Work (0.23%)
CapRock Communications Corp. 800(a) 25,950
Electronic Components &
Accessories (4.94%)
Applied Micro Circuits Corp. 1,300(a) 165,425
ATMI, Inc. 1,100(a) 36,369
Caliper Technologies Corp. 200(a) 13,350
Cobalt Networks, Inc. 200(a) 21,675
E-Tek Dynamics, Inc. 800(a) 107,700
Exar Corp. 700(a) 41,213
Finisar Corp. 400(a) 35,950
Power-One, Inc. 1,300(a) 59,556
Sage, Inc. 100(a) 1,937
SDL, Inc. 200(a) 43,600
Silicon Image, Inc. 300(a) 21,019
547,794
Elementary & Secondary Schools (0.10%)
Education Management Corp. 800(a) 11,200
Engineering & Architectural
Services (0.45%)
Gartner Group, Inc. 1,000 15,250
Tetra Tech, Inc. 2,275(a) 34,978
50,228
Family Clothing Stores (0.53%)
Urban Outfitters, Inc. 2,000(a) 58,250
Farm & Garden Machinery (0.30%)
CNH Global NV 2,500 33,281
Fire, Marine & Casualty
Insurance (2.62%)
Commerce Group, Inc. 700 $ 18,287
Fremont General Corp. 12,800 94,400
MIIX Group, Inc. 400 5,850
Ohio Casualty Corp. 1,300 20,881
Renaissance Holdings Ltd. 3,700 151,238
290,656
Fish Hatcheries & Preserves (0.58%)
PFSweb, Inc. 100 3,750
Symyx Technologies, Inc. 2,000(a) 60,000
63,750
Freight Transportation
Arrangement (1.11%)
C.H. Robinson Worldwide, Inc. 3,100 123,225
Funeral Services & Crematories (0.01%)
Carriage Services, Inc. 200(a) 1,187
Furniture & Home Furnishings
Stores (0.16%)
Cost Plus, Inc. 500(a) 17,813
Gas Production & Distribution (3.11%)
Atmos Energy Corp. 6,000 122,625
Energen Corp. 2,400 43,350
Kinder Morgan, Inc. 2,600 52,487
Public Service Co. of North Carolina 1,600 51,700
Washington Gas Light Co. 2,700 74,250
344,412
General Industrial Machinery (1.12%)
Applied Science & Technology 900(a) 29,911
IDEX Corp. 3,100 94,162
124,073
Home Health Care Services (0.07%)
Women First Healthcare, Inc. 1,500(a) 7,875
Hotels & Motels (0.58%)
Aztar Corp. 2,900(a) 31,538
Extended Stay of America 2,500(a) 19,063
Sun International Hotels Ltd. 700(a) 13,562
64,163
Household Appliance Stores (0.33%)
Williams Sonoma, Inc. 800(a) 36,800
Household Furniture (1.18%)
Ethan Allen Interiors, Inc. 300 9,619
Furniture Brands International, Inc. 2,400(a) 52,800
Stanley Furniture Co., Inc. 3,700(a) 67,987
130,406
Industrial Inorganic Chemicals (3.35%)
Albemarle Corp. 3,900 74,831
General Chemical Group, Inc. 6,800 15,725
Georgia Gulf Corp. 7,000 213,063
Minerals Technologies, Inc. 1,200 48,075
USEC, Inc. 2,800 19,600
371,294
Industrial Organic Chemicals (0.51%)
Bush Boake Allen, Inc. 2,300(a) 56,494
Insurance Agents, Brokers &
Services (0.44%)
E.W. Blanch Holdings, Inc. 400 $ 24,500
Healthextras, Inc. 1,600(a) 19,200
Quotesmith.com, Inc. 400(a) 4,550
48,250
Life Insurance (1.46%)
Annuity & Life Re (Holdings), Ltd. 4,400 114,950
FBL Financial Group, Inc. 1,300 26,000
MONY Group, Inc. 100 2,919
Stancorp Financial Group, Inc. 700 17,631
161,500
Machinery, Equipment & Supplies (0.63%)
National Oilwell, Inc. 2,600(a) 40,787
Willis Lease Financial Corp. 4,500(a) 28,969
69,756
Measuring & Controlling Devices (2.29%)
Cyberonics, Inc. 800(a) 12,750
Cytyc Corp. 100(a) 6,106
Kopin Corp. 1,200(a) 50,400
Mettler-Toledo International, Inc. 3,500(a) 133,656
MKS Instruments, Inc. 1,400(a) 50,575
253,487
Medical & Dental Laboratories (0.12%)
IDEXX Laboratories, Inc. 800(a) 12,900
Medical Instruments & Supplies (0.75%)
Affymetrix, Inc. 100(a) 16,969
CONMED Corp. 1,500(a) 38,813
Eclipse Surgical Technologies, Inc. 700(a) 5,162
EDI-Stat Corp. 700(a) 10,150
ResMed, Inc. 300(a) 12,525
83,619
Medical Service & Health
Insurance (0.18%)
Oxford Health Plans, Inc. 1,600(a) 20,300
Men's & Boys' Furnishings (0.29%)
Columbia Sportswear Co. 1,500(a) 32,250
Metal Forgings & Stamping (0.33%)
Tower Automotive, Inc. 2,400(a) 37,050
Metalworking Machinery (0.15%)
Kennametal, Inc. 500 16,812
Miscellaneous Amusement, Recreation
Services (1.14%)
Anchor Gaming, Inc. 2,300(a) 99,906
Premier Parks, Inc. 900(a) 25,988
125,894
Miscellaneous Business Services (0.60%)
Freemarkets, Inc. 100(a) 34,131
Netratings, Inc. 300(a) 14,438
Ticketmaster Online CitySearch, Inc.,
Class B 100(a) 3,844
Webvan Group, Inc. 200(a) 3,300
Wind River Systems, Inc. 300(a) 11,025
66,738
Miscellaneous Durable Goods (0.51%)
Schnitzer Steel Industries, Inc.,
Class A 3,000 $ 57,000
Miscellaneous Equipment Rental &
Leasing (0.14%)
Aaron Rents, Inc. 900 15,975
Miscellaneous Fabricated Metal
Products (0.48%)
Shaw Group, Inc. 2,100(a) 53,156
Miscellaneous Food & Kindred
Products (0.53%)
American Italian Pasta 1,900(a) 58,425
Miscellaneous Investing (7.58%)
Burnham Pacific Properties, Inc. 6,400 60,000
Centerpoint Properties Corp. 2,100 75,337
Cousins Properties, Inc. 3,600 122,175
Duke-Weeks Realty Corp. 6,182 120,549
Manufactured Homes Communities, Inc. 4,400 106,975
Meristar Hospitality Corp. 5,664 90,624
Mills Corp. 3,200 57,200
Post Properties, Inc. 3,500 133,875
The Macerich Co. 3,500 72,844
839,579
Miscellaneous Manufacturers (0.66%)
Gentek, Inc. 7,000 73,063
Miscellaneous Plastics Products (0.20%)
AptarGroup, Inc. 900 22,612
Miscellaneous Special Trade
Contractors (0.20%)
Dycom Industries, Inc. 500(a) 22,031
Mortgage Bankers & Brokers (0.14%)
American Home Mortgage Holdings, Inc. 1,500(a) 9,937
MicroFinancial, Inc. 500 5,844
15,781
Motion Picture Production &
Services (0.27%)
Cinar Films, Inc., Class B 1,200(a) 29,400
Motor Vehicles & Equipment (0.52%)
American Axle & Manufacturing
Holdings, Inc. 800(a) 9,700
Monaco Coach Corp. 1,400(a) 35,788
Wabash National Corp. 800 12,000
57,488
Motor Vehicles, Parts & Supplies (0.13%)
Dura Automotive System 800(a) 13,950
New & Used Car Dealers (0.52%)
Lithia Motors, Inc. 2,100(a) 37,538
Sonic Automotive, Inc. 2,100(a) 20,475
58,013
Non-Ferrous Rolling & Drawing (0.85%)
Mueller Industries, Inc. 2,600(a) 94,250
Non-Store Retailers (0.13%)
barnesandnoble.com, Inc. 700(a) 9,931
Stamps.Com, Inc. 100(a) 4,163
14,094
Office Furniture (0.41%)
Herman Miller, Inc. 1,500 $ 34,500
Hon Industries, Inc. 500 10,969
45,469
Oil & Gas Field Services (0.92%)
Global Marine, Inc. 5,000(a) 83,125
Spinnaker Exploration Co. 1,300(a) 18,363
101,488
Operative Builders (0.26%)
D.R. Horton, Inc. 2,100 29,006
Paper & Paper Products (0.25%)
School Specialty, Inc. 1,800(a) 27,225
Paperboard Containers & Boxes (0.23%)
Ivex Packaging Corp. 2,600(a) 26,000
Paperboard Mills (0.85%)
Caraustar Industries, Inc. 3,900(a) 93,600
Passenger Transportation
Arrangement (0.05%)
Travel Services International, Inc. 600(a) 5,475
Personal Credit Institutions (0.08%)
Creditrust Corp. 1,200(a) 9,225
Personnel Supply Services (0.63%)
Computer Horizons Corp. 1,800(a) 29,138
Modis Professional Services, Inc. 1,200(a) 17,100
On Assignment, Inc. 800(a) 23,900
70,138
Petroleum Refining (0.36%)
Lyondell Petrochemical Co. 3,100 39,525
Plastic Materials & Synthetics (2.88%)
Geon Co. 5,700 185,250
Wellman, Inc. 7,200 134,100
319,350
Producers, Orchestras &
Entertainers (0.09%)
World Wrestling Federation
Entertainment, Inc. 600(a) 10,350
Pulp Mills (0.32%)
Buckeye Technologies, Inc. 2,400(a) 35,700
Radio & Television Broadcasting (2.60%)
Allegiance Telecom, Inc. 700(a) 64,575
American States Water Co. 3,200 115,200
Citadel Communication Corp. 300(a) 19,462
Entercom Communications Corp. 500(a) 33,000
Spanish Broadcasting System, Inc. 1,400(a) 56,350
288,587
Railroads (0.47%)
Wisconsin Central Transportation Corp. 3,900(a) 52,406
Real Estate Operators & Lessors (1.52%)
Arden Realty Group, Inc. 6,300 126,394
Costar Group, Inc. 800(a) 28,700
Mission West Properties, Inc. 1,700 13,175
168,269
Research & Testing Services (0.26%)
Maxygen, Inc. 100(a) $ 7,100
Media Metrix, Inc. 400(a) 14,300
Trimeris, Inc. 300(a) 7,088
28,488
Retail Stores (0.15%)
1-800-Flowers.Com, Inc., Class A 1,500(a) 16,031
Rubber & Plastic Footwear (0.13%)
Vans, Inc. 1,200(a) 14,700
Savings Institutions (2.76%)
Bank United Corp. 3,700 100,825
Commercial Federal Corp. 4,600 81,938
Community First Bankshares, Inc. 3,500 55,125
Firstfed Financial Corp. 2,900(a) 40,781
Ocwen Financial Corp. 4,400(a) 27,500
306,169
Sawmills & Planning Mills (0.79%)
Universal Forest Products 5,900 87,025
Search & Navigation Equipment (0.25%)
Orbital Sciences Corp. 1,500(a) 27,844
Security & Commodity Services (0.18%)
Gabelli Asset Management, Inc., Class A1,200(a) 19,500
Security Brokers & Dealers (0.42%)
TD Waterhouse Group 1,900(a) 31,231
Web Street, Inc. 1,200(a) 14,850
46,081
Soap, Cleaners & Toilet Goods (0.54%)
Alberto-Culver Co. 2,300 59,369
Special Industry Machinery (0.30%)
Lam Research Corp. 300(a) 33,469
Surety Insurance (0.05%)
FPIC Insurance Group, Inc. 300(a) 5,006
Telegraph & Other
Communications (0.07%)
Z-Tel Technologies, Inc. 200(a) 8,075
Telephone Communication (1.07%)
American Mobil Satellite 1,200(a) 25,275
Covad Communications Group 700(a) 39,156
Deltathree.com, Inc. 400(a) 10,300
Ibasis, Inc. 200(a) 5,750
Net2phone, Inc. 300(a) 13,781
Telecorp PCS, Inc. 400(a) 15,200
Tritel, Inc. 300(a) 9,506
118,968
Toys & Sporting Goods (0.07%)
Jakks Pacific, Inc. 400(a) 7,475
Trucking & Courier Services (0.98%)
Allied Holdings, Inc. 4,800(a) 29,400
Werner Enterprises, Inc. 5,650 79,453
108,853
Trusts (0.48%)
Allied Capital Corp. 2,900 53,106
Variety Stores (0.25%)
ShopKo Stores, Inc. 1,200(a) $ 27,600
Water Supply (1.57%)
E'Town Corp. 2,800 174,300
Water Transportation of
Passengers (0.22%)
American Classic Voyages Co. 700(a) 24,500
Women's Clothing Stores (0.53%)
Anntaylor Stores Corp. 1,700(a) 58,544
Total Portfolio Investment (92.07%) 10,201,523
Cash and receivables, net of liabilities (7.93%) 878,934
Total Net Assets (100.00%) $11,080,457
(a) Non-income producing security - No dividend paid during the past twelve
months.
STOCK INDEX 500 ACCOUNT
Shares
Held Value
Common Stocks (81.64%)
Accounting, Auditing &
Bookkeeping (0.07%)
Paychex, Inc. 753 $ 30,120
Advertising (0.22%)
Interpublic Group of Cos., Inc. 857 49,438
Omnicom Group, Inc. 542 54,200
103,638
Air Transportation, Scheduled (0.26%)
AMR Corp. 452(a) 30,284
Delta Air Lines, Inc. 406 20,224
FDX Corp. 912(a) 37,335
Southwest Airlines Co. 1,544 24,993
US Airways Group, Inc. 219(a) 7,022
119,858
Aircraft & Parts (1.02%)
B.F. Goodrich Co. 336 9,240
Boeing Co. 2,855 118,661
General Dynamics Corp. 614 32,389
Honeywell International, Inc. 2,419 139,539
Northrop Grumman Corp. 213 11,515
Rockwell International Corp. 581 27,815
Textron, Inc. 454 34,816
United Technologies Corp. 1,462 95,030
469,005
Auto & Home Supply Stores (0.03%)
Autozone, Inc. 441(a) 14,250
Automotive Rentals, No Drivers (0.01%)
Ryder Systems, Inc. 197 $ 4,814
Bakery Products (0.13%)
Sara Lee Corp. 2,776 61,246
Beer, Wine & Distilled Beverages (0.03%)
Brown-Forman Corp. 210 12,023
Beverages (1.71%)
Adolph Coors Co., Class B 113 5,932
Anheuser-Busch Cos., Inc. 1,421 100,713
Coca-Cola Co. 7,544 439,438
Coca-Cola Enterprises 1,302 26,203
PepsiCo, Inc. 4,446 156,722
Seagram Co. Ltd. 1,325 59,542
788,550
Blankbooks & Bookbinding (0.01%)
Deluxe Corp. 224 6,146
Blast Furnace & Basic Steel
Products (0.08%)
Allegheny Technologies, Inc. 287 6,428
Bethlehem Steel Corp. 401(a) 3,359
Nucor Corp. 267 14,635
USX-U.S. Steel Group 271 8,943
Worthington Industries, Inc. 272 4,505
37,870
Books (0.09%)
McGraw-Hill Cos., Inc. 599 36,914
Meredith Corp. 159 6,628
43,542
Broadwoven Fabric Mills, Cotton (0.01%)
Springs Industries, Inc. 55 2,197
Business Credit Institutions (0.22%)
Associates First Capital Corp.,
Class A 2,224 61,021
Providian Financial Corp. 434 39,521
100,542
Cable & Other Pay TV Services (0.56%)
Comcast Corp., Special Class A 2,296 115,374
MediaOne Group, Inc. 1,869(a) 143,563
258,937
Chemicals & Allied Products (0.21%)
Dow Chemical Company 670 89,529
Sigma-Aldrich Corp. 309 9,289
98,818
Combination Utility Services (0.17%)
Cinergy Corp. 486 11,725
Constellation Energy Group, Inc. 458 13,282
Entergy Corp. 756 19,467
Northern States Power Co. 472 9,204
PG&E Corp. 1,177 24,128
77,806
Commercial Banks (4.21%)
AmSouth Bancorp. 1,195 23,078
Bank of America Corp. 5,215 261,728
Bank of New York Co., Inc. 2,249 89,960
Bank One Corp. 3,503 112,315
BB&T Corp. 1,011 27,676
Chase Manhattan Corp. 2,519 195,695
Comerica, Inc. 479 22,363
Fifth Third Bancorp 943 69,193
First Union Corp. 3,017 $ 98,995
Firstar Corp. 2,994 63,248
FleetBoston Financial Corp. 2,797 97,371
Huntington Bancshares, Inc. 705 16,832
J.P. Morgan & Co., Inc. 529 66,985
KeyCorp 1,366 30,223
MBNA Corp. 2,449 66,735
Mellon Financial Corp. 1,554 52,933
National City Corp. 1,883 44,604
Northern Trust Corp. 682 36,146
Old Kent Financial Corp. 360 12,735
PNC Financial Corp. 898 39,961
Regions Financial Corp. 668 16,783
Republic New York Corp. 321 23,112
Southtrust Corp. 513 19,398
State Street Corp. 489 35,727
Summit Bancorp 534 16,354
Suntrust Banks, Inc. 977 67,230
Synovus Financial Corp. 855 16,993
Union Planters Corp. 431 16,998
US Bancorp 2,223 52,935
Wachovia Corp. 619 42,092
Wells Fargo Co. 5,016 202,834
1,939,232
Commercial Printing (0.02%)
R.R. Donnelley & Sons Co. 386 9,578
Communications Equipment (4.27%)
ADC Telecommunications, Inc. 458(a) 33,234
Andrew Corp. 251(a) 4,753
General Instrument Corp. 531(a) 45,135
Lucent Technologies, Inc. 9,570 715,956
Motorola, Inc. 1,860 273,885
Network Appliance, Inc. 456(a) 37,877
Nortel Networks Corp. 4,080 412,080
Qualcom, Inc. 2,016(a) 355,068
Scientific-Atlanta, Inc. 240 13,350
Teledyne Technologies, Inc. 1(a) 5
Tellabs, Inc. 1,229(a) 78,886
1,970,229
Communications Services, NEC (0.25%)
Nextel Communications, Inc. 1,110(a) 114,469
Computer & Data Processing
Services (9.19%)
3COM Corp. 1,054(a) 49,538
Adobe Systems, Inc. 367 24,681
America Online, Inc. 6,828(a) 515,087
Autodesk, Inc. 186 6,277
BMC Software, Inc. 740(a) 59,154
Citrix Systems, Inc. 274(a) 33,702
Computer Associates
International, Inc. 1,647 115,187
Computer Sciences Corp. 509(a) 48,164
Compuware Corp. 1,094(a) 40,752
Electronic Data Systems Corp. 1,438 96,256
First Data Corp. 1,280 63,120
IMS Health, Inc. 941 25,583
Microsoft Corp. 15,761(a) 1,840,097
Novell, Inc. 1,017(a) 40,489
Oracle Systems Corp. 4,349(a) 487,360
Parametric Technology Corp. 824(a) 22,300
Peoplesoft, Inc. 820(a) 17,476
Shared Medical Systems Corp. 82 4,177
Sun Microsystems, Inc. 4,771(a) $ 369,454
Unisys Corp. 947(a) 30,245
Yahoo!, Inc. 804(a) 347,881
4,236,980
Computer & Office Equipment (7.12%)
Apple Computer, Inc. 491(a) 50,481
Automatic Data Processing, Inc. 1,909 102,847
Cabletron Systems, Inc. 552(a) 14,352
Ceridian Corp. 443(a) 9,552
Cisco Systems, Inc. 9,991(a) 1,070,286
Compaq Computer Corp. 5,193 140,536
Comverse Technology, Inc. 218(a) 31,556
Dell Computer Corp. 7,761(a) 395,811
EMC Corp. 3,108(a) 339,549
Gateway, Inc. 967(a) 69,684
Hewlett-Packard Co. 3,112 354,573
International Business Machines Corp. 5,506 594,648
Lexmark International Group, Inc. 390(a) 35,295
Pitney Bowes, Inc. 810 39,133
Seagate Technology, Inc. 638(a) 29,707
Slicon Graphics 561(a) 5,505
3,283,515
Construction & Related Machinery (0.22%)
Baker Hughes, Inc. 1,008 21,231
Caterpillar, Inc. 1,086 51,110
Dover Corp. 622 28,223
100,564
Consumer Products (0.45%)
Fortune Brands, Inc. 501 16,564
Nabisco Group Holdings Corp. 1,000 10,625
Philip Morris Cos., Inc. 7,227 167,576
UST, Inc. 523 13,173
207,938
Credit Reporting & Collection (0.02%)
Equifax, Inc. 432 10,179
Crude Petroleum & Natural Gas (0.46%)
Anadarko Petroleum Co. 390 13,309
Apache Corp. 349 12,891
Burlington Resources, Inc. 666 22,020
Kerr-McGee Corp. 265 16,430
Occidental Petroleum Corp. 1,123 24,285
Texaco, Inc. 1,689 91,734
Union Pacific Resources Group, Inc. 771 9,830
USX-Marathon Group, Inc. 946 23,354
213,853
Crushed & Broken Stone (0.03%)
Vulcan Materials Co. 306 12,221
Cutlery, Handtools & Hardware (0.48%)
Danaher Corp. 435 20,989
Gillette Co. 3,276 134,930
Illinois Tool Works, Inc. 918 62,022
Snap-On, Inc. 179 4,755
222,696
Department Stores (2.40%)
Dillard's, Inc., Class A 327 6,601
Federated Department Stores, Inc. 639(a) 32,310
Harcourt General, Inc. 218 8,775
Kohl's Corp. 498(a) 35,949
May Department Stores Co. 1,024 33,024
J.C. Penny Co., Inc. 795 15,850
Department Stores (Continued)
Sears, Roebuck & Co. 1,154 $ 35,125
Wal-Mart Stores, Inc. 13,593 939,616
1,107,250
Drug Stores & Proprietary Stores (0.32%)
CVS Corp. 1,200 47,925
Longs Drug Stores Corp. 120 3,097
Rite Aid Corp. 793 8,872
Walgreen Co. 3,065 89,651
149,545
Drugs (6.25%)
Abbott Laboratories 4,696 170,524
ALZA Corp. 311(a) 10,768
American Home Products Corp. 3,988 157,277
Amgen, Inc. 3,120(a) 187,395
Bristol-Myers Squibb Co. 6,059 388,912
Johnson & Johnson 4,247 395,502
Lilly (Eli) & Co. 3,331 221,512
Merck & Co., Inc. 7,140 478,826
Pfizer, Inc. 11,825 383,573
Pharmacia & Upjohn, Inc. 1,584 71,280
Schering-Plough Corp. 4,487 189,295
Warner-Lambert Co. 2,623 214,922
Watson Pharmaceuticals, Inc. 293(a) 10,493
2,880,279
Drugs, Proprietaries & Sundries (0.13%)
Cardinal Health, Inc. 856 40,981
McKesson HBOC, Inc. 862 19,449
60,430
Eating & Drinking Places (0.43%)
Darden Restaurants, Inc. 405 7,341
McDonald's Corp. 4,136 166,733
Tricon Global Restaurants, Inc. 470(a) 18,153
Wendy's International, Inc. 365 7,528
199,755
Electric Lighting & Wiring
Equipment (0.05%)
Cooper Industries, Inc. 289 11,687
National Service Industries, Inc. 124 3,658
Thomas & Betts Corp. 174 5,546
20,891
Electric Services (1.38%)
AES Corp. 631(a) 47,167
Ameren Corp. 420 13,755
American Electric Power Co., Inc. 592 19,018
Carolina Power & Light Co. 489 14,884
Central & Southwest Corp. 651 13,020
CMS Energy Corp. 354 11,040
Consolidated Edison, Inc. 677 23,357
Dominion Resources, Inc. 583 22,883
DTE Energy Co. 444 13,931
Duke Energy Corp. 1,118 56,040
Edison International 1,064 27,864
Enron Corp. 2,187 97,048
FirstEnergy Corp. 716 16,244
Florida Progress Corp. 301 12,736
FPL Group, Inc. 549 23,504
GPU, Inc. 377 $ 11,286
New Century Energies, Inc. 353 10,722
Niagara Mohawk Holdings, Inc. 574(a) 8,000
Peco Energy Co. 567 19,703
Pinnacle West Capital Corp. 260 7,946
PP&L Resources, Inc. 439 10,042
Public Service Enterprise Group, Inc. 671 23,359
Reliant Energy, Inc. 907 20,748
Sempra Energy 736 12,788
Southern Co. 2,056 48,316
Texas Utilities Holdings Co. 844 30,015
Unicom Corp. 665 22,278
637,694
Electrical Industrial Apparatus (0.16%)
Emerson Electric Co. 1,327 76,137
Electronic Components &
Accessories (3.10%)
Adaptec, Inc. 312(a) 15,561
Advanced Micro Devices, Inc. 451(a) 13,051
Analog Devices, Inc. 533(a) 49,569
Intel Corp. 10,205 839,999
LSI Logic Corp. 454(a) 30,645
Micron Technology, Inc. 824(a) 64,066
Molex, Inc. 479 27,153
National Semiconductor Corp. 524(a) 22,434
Solectron Corp. 895(a) 85,137
Texas Instruments, Inc. 2,450 237,344
Xilinx, Inc. 974(a) 44,286
1,429,245
Electronic Distribution Equipment (3.36%)
General Electric Co. 10,022 1,550,905
Engines & Turbines (0.04%)
Briggs & Stratton Corp. 71 3,807
Brunswick Corp. 282 6,275
Cummins Engine Co., Inc. 128 6,184
16,266
Fabricated Rubber Products, NEC (0.01%)
Cooper Tire & Rubber Co. 232 3,610
Family Clothing Stores (0.33%)
Gap, Inc. 2,615 120,290
Nordstrom, Inc. 423 11,077
TJX Cos., Inc. 947 19,354
150,721
Farm & Garden Machinery (0.07%)
Deere & Co. 715 31,013
Fats & Oils (0.05%)
Archer Daniels Midland Co. 1,858 22,644
Federal & Federally Sponsored
Credit (0.69%)
Federal National Mortgage
Association 3,131 195,492
Freddie Mac 2,123 99,914
SLM Holdings Corp. 486 20,533
315,939
Finance Services (0.03%)
Cincinnati Financial Corp. 501 15,625
Fire, Marine & Casualty
Insurance (1.68%)
Aetna, Inc. 458 $ 25,562
Allstate Corp. 2,460 59,040
American International Group, Inc. 4,729 511,323
Chubb Corp. 537 30,240
Cigna Corp. 569 45,840
Hartford Financial Services
Group, Inc. 677 32,073
Loews Corp. 324 19,663
Progressive Corp. 223 16,307
SAFECO Corp. 397 9,875
St. Paul Cos., Inc. 694 23,379
773,302
Forest Products (0.11%)
Weyerhaeuser Co. 717 51,490
Funeral Service & Crematories (0.01%)
Service Corp. International 834 5,786
Furniture & Home Furnishings (0.03%)
Bed Bath & Beyond, Inc. 428(a) 14,873
Gas Production & Distribution (0.26%)
Columbia Energy Group 248 15,686
Consolidated Natural Gas Co. 294 19,092
Eastern Enterprises 82 4,710
Nicor, Inc. 144 4,680
Oneok Inc. 97 2,437
Paso Energy Corp. 698 27,091
Peoples Energy Corp. 109 3,651
Williams Cos., Inc. 1,330 40,648
117,995
General Industrial Machinery (0.52%)
Ingersoll-Rand Co. 500 27,531
Pall Corp. 380 8,194
Timken Co. 190 3,883
Tyco International Ltd. 5,158 200,517
240,125
Glass & Glassware, Pressed or
Blown (0.23%)
Corning, Inc. 748 96,445
Owens-Illinois, Inc. 459(a) 11,504
107,949
Gold & Silver Ores (0.11%)
Barrick Gold Corp. 1,204 21,296
Homestake Mining Co. 797 6,227
Newmont Mining Corp. 513 12,568
Placer Dome, Inc. 998 10,728
50,819
Grain Mill Products (0.27%)
General Mills, Inc. 928 33,176
Kellogg Co. 1,238 38,146
Quaker Oats Co. 410 26,906
Ralston-Ralston Purina Group 991 27,624
125,852
Greeting Cards (0.01%)
American Greetings Corp. 197 4,654
Groceries & Related Materials (0.43%)
Safeway, Inc. 1,554(a) $ 55,264
SUPERVALU, Inc. 425 8,500
SYSCO Corp. 1,006 39,800
Unilever NV 1,746 95,048
198,612
Grocery Stores (0.23%)
Albertson's, Inc. 1,294 41,732
Great Atlantic & Pacific Tea Co., Inc. 117 3,261
Kroger Co. 2,541(a) 47,961
Winn-Dixie Stores, Inc. 455 10,892
103,846
Hardware, Plumbing & Heating (0.00%)
Water Pik Technologies, Inc. 1(a) 7
Health & Allied Services, NEC (0.01%)
HEALTHSOUTH Corp. 1,180(a) 6,343
Heavy Construction, Except
Highway (0.01%)
Foster Wheeler Corp. 125 1,110
McDermott International, Inc. 182 1,649
2,759
Highway & Street Construction (0.12%)
Halliburton Co. 1,349 54,297
Hospitals (0.17%)
Columbia/HCA Healthcare Corp. 1,721 50,447
Humana, Inc. 513(a) 4,200
Tenet Healthcare Corp. 952(a) 22,372
77,019
Hotels & Motels (0.10%)
Hilton Hotels Corp. 1,128 10,857
Marriott International, Inc., Class A 762 24,051
Mirage Resorts, Inc. 590 9,034
43,942
Household Appliances (0.06%)
Maytag Corp. 258 12,384
Whirlpool Corp. 227 14,769
27,153
Household Furniture (0.03%)
Leggett & Platt Inc. 602 12,905
Industrial Inorganic Chemicals (0.36%)
Air Products & Chemicals, Inc. 702 23,561
Eastman Chemical Co. 239 11,397
Great Lakes Chemical Corp. 176 6,721
Monsanto Co. 1,938 69,041
Praxair, Inc. 488 24,553
Union Carbide Corp. 408 27,234
W.R. Grace & Co. 218(a) 3,025
165,532
Industrial Organic Chemicals (0.03%)
International Flavors &
Fragrances, Inc. 321 12,118
Insurance Agents, Brokers &
Services (0.17%)
Marsh & McLennan Cos., Inc. 815 77,985
Jewelry, Silverware & Plated Ware (0.01%)
Jostens, Inc. 104 2,529
Knitting Mills (0.00%)
Russell Corp. 102 $ 1,708
Life Insurance (0.22%)
American General Corp. 755 57,286
Jefferson-Pilot Corp. 320 21,840
Lincoln National Corp. 597 23,880
103,006
Lumber & Construction Materials (0.01%)
Crane Co. 207 4,114
Huttig Building Products, Inc. 46(a) 227
4,341
Lumber & Other Building
Materials (1.20%)
Home Depot, Inc. 7,032 482,132
Lowe's Cos, Inc. 1,167 69,728
551,860
Machinery, Equipment & Supplies (0.03%)
Grainger (W.W.), Inc. 286 13,674
Management & Public Relations (0.07%)
Dun & Bradstreet Corp. 493 14,544
Fluor Corp. 232 10,643
Perkinelmer, Inc. 140 5,836
31,023
Measuring & Controlling Devices (0.39%)
Allergan, Inc. 404 20,099
Eaton Corp. 225 16,341
Johnson Controls, Inc. 261 14,844
KLA-Tencor Corp. 275(a) 30,628
Mallinckrodt, Inc. 213 6,776
Millipore Corp. 138 5,330
PE Corp.-PE Biosystems Group 315 37,899
Tektronix, Inc. 143 5,559
Teradyne, Inc. 524(a) 34,584
Thermo Electron Corp. 483(a) 7,245
179,305
Meat Products (0.07%)
ConAgra, Inc. 1,504 33,934
Medical Instruments & Supplies (0.68%)
Bard (C.R.) Inc. 157 8,321
Baxter International, Inc. 889 55,840
Becton, Dickinson & Co. 766 20,491
Biomet, Inc. 344 13,760
Boston Scientific Corp. 1,267(a) 27,716
Guidant Corp. 939(a) 44,133
Medtronic, Inc. 3,651 133,033
St. Jude Medical, Inc. 259(a) 7,948
311,242
Medical Services & Health
Insurance (0.35%)
AFLAC, Inc 814 38,410
Aon Corp. 784 31,360
Conseco, Inc. 1,002 17,911
Torchmark Corp. 402 11,683
United Healthcare Corp. 519 $ 27,572
Unumprovident Corp. 731 23,438
Wellpoint Health Networks, Inc. 194(a) 12,792
163,166
Men's & Boys' Furnishings (0.02%)
V.F. Corp. 364 10,920
Metal Cans & Shipping
Containers (0.03%)
Ball Corp. 93 3,662
Crown Cork & Seal Co., Inc. 375 8,391
12,053
Metal Mining Services (0.02%)
Freeport-McMoRan Cooper &
Gold, Inc., Class B 500(a) 10,563
Metalworking Machinery (0.05%)
Black & Decker Corp. 267 13,951
Stanley Works 272 8,194
22,145
Millwork, Plywood & Structural
Members (0.06%)
Georgia-Pacific Group 522 26,492
Miscellaneous Amusement, Recreation
Service (0.02%)
Harrahs Entertainment, Inc. 393(a) 10,390
Miscellaneous Converted Paper (0.34%)
Avery Dennison Corp. 344 25,069
Bemis Company, Inc. 160 5,580
Minnesota Mining & Mfg. Co. 1,226 119,995
Pactiv Corp. 522(a) 5,546
156,190
Miscellaneous Fabricated Metal
Products (0.04%)
Parker-Hannifin Corp. 342 17,548
Miscellaneous Food & Kindred
Products (0.21%)
Bestfoods 852 44,783
Campbell Soup Co. 1,307 50,565
95,348
Miscellaneous Furniture &
Fixtures (0.05%)
Newell Rubbermaid, Inc. 864 25,056
Miscellaneous General Merchandise
Stores (0.01%)
Consolidated Stores Corp. 337(a) 5,476
Miscellaneous Investing (0.13%)
Cendant Corp. 2,172(a) 57,694
Miscellaneous Manufacturers (0.01%)
Armstrong World Industries, Inc. 123 4,105
Nacco Industries, Inc. 25 1,389
5,494
Miscellaneous Non-Metallic Mineral
Products (0.01%)
Owens Corning 168 3,245
Miscellanous Personal Financial
Services (0.03%)
H&R Block, Inc. 299 $ 13,081
Miscellaneous Plastics Products,
NEC (0.04%)
Sealed Air Corp. 256(a) 13,264
Tupperware Corp. 176 2,981
16,245
Miscellaneous Shopping Goods
Stores (0.11%)
Office Depot, Inc. 1,005(a) 10,992
Staples, Inc. 1,419(a) 29,444
Toys `R' Us, Inc. 748(a) 10,706
51,142
Miscellaneous Transportation
Equipment (0.02%)
Fleetwood Enterprises, Inc. 102 2,104
FMC Corp. 93(a) 5,330
7,434
Mortgage Bankers & Brokers (0.02%)
Countrywide Credit Industries, Inc. 346 8,737
Motion Picture Production &
Services (1.30%)
Arner, Inc. 3,930 284,679
Viacom, Inc., Class B 2,129(a) 128,672
Walt Disney Co. 6,299 184,246
597,597
Motor Vehicles & Equipment (0.93%)
Dana Corp. 502 15,028
Delphi Automotive Systems Corp. 1,731 27,263
Ford Motor Co. 3,689 197,131
General Motors Corp. 1,955 142,104
ITT Industries, Inc. 269 8,995
Navistar International Corp. 194(a) 9,191
Paccar, Inc. 240 10,635
TRW, Inc 371 19,269
429,616
Motor Vehicles, Parts & Supplies (0.03%)
Genuine Parts Co. 543 13,473
Pep Boys-Manny, Moe & Jack 161 1,469
14,942
Newspapers (0.39%)
Dow Jones & Co., Inc. 273 18,564
Gannett Co. 851 69,410
Knight-Ridder, Inc. 256 15,232
New York Times Co., Class A 523 25,692
Times Mirror Co., Class A 183 12,261
Tribune Co. 726 39,975
181,134
Non-Ferrous Rolling & Drawing (0.03%)
Reynolds Metals Co. 193 14,789
Nursing & Personal Care
Facilities (0.01%)
Manor Care, Inc. 315(a) 5,040
Oil & Gas Field Services (0.26%)
Rowan Cos., Inc. 255(a) 5,530
Schlumberger Ltd. 1,678 94,388
Transocean Offshore, Inc. 303 9,923
TransOcean Sedco Forex, Inc. 326 10,966
120,807
Operative Builders (0.02%)
Centex Corp. 182 $ 4,493
Pulte Corp. 132 2,970
7,463
Opthalmic Goods (0.03%)
Bausch & Lomb, Inc. 176 12,045
Ordnance & Accessories, NEC (0.06%)
Lockheed Martin Corp. 1,211 26,491
Paints & Allied Products (0.02%)
Sherwin-Williams Co. 507 10,647
Paper Mills (0.34%)
Fort James Corp. 661 18,095
Kimberly Clark Corp. 1,663 108,511
Potlatch Corp. 89 3,971
Westvaco Corp. 307 10,016
Willamette Industries, Inc. 342 15,882
156,475
Paperboard Containers & Boxes (0.02%)
Temple-Inland, Inc. 171 11,275
Personal Credit Institutions (0.67%)
American Express Co. 1,367 227,264
Capital One Financial Corp. 602 29,009
Household International Corp. 1,436 53,491
309,764
Petroleum Refining (3.64%)
Amerada Hess Corp. 277 15,720
Ashland, Inc. 221 7,279
Atlantic Richfield Co. 986 85,289
Chevron Corp. 2,005 173,683
Coastal Corp. 653 23,141
Conoco, Inc., Class B 1,913 47,586
Exxon Mobil Corp. 10,549 849,860
Phillips Petroleum Co. 775 36,425
Royal Dutch Petroleum Co. ADR 6,550 395,866
Sunoco, Inc. 277 6,510
Tosco Corp. 440 11,962
Unocal Corp. 742 24,903
1,678,224
Photographic Equipment &
Supplies (0.24%)
Eastman Kodak Co. 964 63,865
Polaroid Corp. 136 2,559
Xerox Corp. 2,031 46,078
112,502
Plastic Materials & Synthetics (0.61%)
Du Pont (E. I.) de Nemours 3,190 210,141
Hercules, Inc. 325 9,059
PPG Industries, Inc. 532 33,283
Rohm & Haas Co. 667 27,139
279,622
Plumbing & Heating, Except
Electric (0.08%)
Masco Corp. 1,365 34,637
Preserved Fruits & Vegetables (0.09%)
Heinz (H.J.) Co. 1,095 43,595
Primary Non-Ferrous Metals (0.34%)
Alcan Aluminium Ltd. 669 $ 27,555
Alcoa, Inc. 1,119 92,877
Engelhard Corp. 385 7,267
Inco Ltd. 588(a) 13,818
Phelps Dodge Corp. 248 16,640
158,157
Professional & Commercial
Equipment (0.01%)
Ikon Office Solutions, Inc. 457 3,113
Pulp Mills (0.24%)
Boise Cascade Corp. 175 7,087
Champion International Corp. 294 18,210
International Paper Co. 1,265 71,393
Mead Corp. 313 13,596
110,286
Radio & Television Broadcasting (0.52%)
CBS Corp. 2,329(a) 148,910
Clear Channel Communications, Inc. 1,035(a) 92,374
241,284
Radio, Television & Computer
Stores (0.19%)
Best Buy, Inc. 627(a) 31,467
Circuit City Stores - Circuit City Group 621 27,984
Tandy Corp. 590 29,021
88,472
Railroads (0.30%)
Burlington Northern Santa Fe Corp. 1,396 33,853
CSX Corp. 666 20,896
Kansas City Southern Industries, Inc. 338 25,223
Norfolk Southern Corp. 1,166 23,903
Union Pacific Corp. 759 33,111
136,986
Research & Testing Services (0.01%)
Quintiles Transnational Corp. 351(a) 6,559
Residential Building Construction (0.01%)
Kaufman & Broad Home Corp. 147 3,556
Retail Stores, NEC (0.13%)
Costco Wholesale Corp. 678(a) 61,867
Rubber & Plastics Footwear (0.10%)
Nike, Inc. 855 42,376
Reebok International Ltd. 172(a) 1,408
43,784
Sanitary Services (0.08%)
Allied Waste Industries, Inc. 577(a) 5,085
Waste Management, Inc. 1,897 32,605
37,690
Savings Institutions (1.38%)
Citigroup, Inc. 10,299 572,238
Golden West Financial Corp. 494 16,549
Washington Mutual, Inc. 1,763 45,838
634,625
Sawmills & Planning Mills (0.01%)
Louisiana Pacific Corp. 329 $ 4,688
Search & Navigation Equipment (0.06%)
Raytheon Co., Class B 1,035 27,492
Security & Commodity Services (0.08%)
Franklin Resources, Inc. 772 24,752
Price (T. Rowe) Associates, Inc. 365 13,482
38,234
Security Brokers & Dealers (1.08%)
Bear Stearns Cos., Inc. 364 15,561
Charles Schwab Corp. 2,506 96,168
Lehman Brothers Holdings, Inc. 367 31,080
Merrill Lynch & Co., Inc. 1,132 94,522
Morgan Stanley Dean Witter & Co. 1,701 242,818
Paine Webber Group, Inc. 436 16,922
497,071
Soap, Cleaners & Toilet Goods (1.38%)
Alberto-Culver Co., Class B 171 4,414
Avon Products, Inc. 740 24,420
Clorox Co. 723 36,421
Colgate-Palmolive Co. 1,779 115,635
Ecolab, Inc. 396 15,493
Procter & Gamble Co. 4,014 439,784
636,167
Special Industry Machinery (0.32%)
Applied Materials, Inc. 1,156(a) 146,451
Milacron, Inc. 113 1,737
148,188
Sugar & Confectionery Products (0.11%)
Hershey Foods Corp. 423 20,092
Wrigley (Wm.) Jr. Co. 354 29,360
49,452
Surety Insurance (0.08%)
MBIA, Inc. 306 16,161
MGIC Investment Corp. 323 19,440
35,601
Telephone Communication (6.24%)
Alltel Corp. 959 79,297
AT&T Corp. 9,760 495,320
Bell Atlantic Corp. 4,743 291,991
BellSouth Corp. 5,749 269,125
Centurytel, Inc. 427 20,229
Global Crossing Ltd. 2,318(a) 115,900
GTE Corp. 2,968 209,430
MCI Worldcom, Inc 8,670(a) 460,052
SBC Communications, Inc. 10,420 507,975
Sprint Corp. 2,662 179,186
Sprint PCS Group 1,316(a) 134,890
U.S. West, Inc. 1,543 111,096
2,874,491
Tires & Inner Tubes (0.03%)
Goodyear Tire & Rubber Co. 478 13,474
Toys & Sporting Goods (0.06%)
Hasbro, Inc. 596 11,361
Mattel, Inc. 1,288 16,905
28,266
Variety Stores (0.29%)
Dayton-Hudson Corp. 1,346 $ 98,847
Dollar General Corp. 812 18,473
Kmart Corp. 1,513(a) 15,224
132,544
Water Transportation of
Passengers (0.20%)
Carnival Corp. 1,884 90,079
Women's & Misses' Outerwear (0.01%)
Liz Claiborne, Inc. 181 6,810
Women's Clothing Stores (0.06%)
Limited, Inc. 655 28,370
Total Common Stocks 37,629,140
Principal
Amount Value
Commercial Paper (13.37%)
Federal & Federally Sponsored
Credit (17.37%)
Investment in Joint Trade Account,
Federal Home Loan Mortgage Corp.;
1.50%; 1/3/2000 $8,004,133 $ 8,004,133
Total Portfolio Investments (99.01%) 45,633,273
Cash and receivables, net of liabilities (0.99%) 455,049
Total Net Assets (100.00%) $46,088,322
(a) Non-income producing security - No dividend paid during the past twelve
months.
UTILITIES ACCOUNT
Shares
Held Value
Common Stocks (94.20%)
Combination Utility Services (10.18%)
Citizens Utilities Co. 50,596(a) $ 717,831
Constellation Energy Group, Inc. 24,400 707,600
Montana Power Co. 11,200 403,900
Nisource, Inc. 21,700 387,888
Scana Corp. 11,000 295,625
Utilicorp United, Inc. 31,400 610,337
3,123,181
Electric Services (44.92%)
AES Corp. 12,400(a) 926,900
Allegheny Energy 17,400 468,712
Avista Corp. 27,700 427,619
Carolina Power & Light Co. 7,500 228,281
CMS Energy Corp. 16,100 502,119
DQE, Inc. 13,000 450,125
Duke Energy Corp. 12,400 621,550
Edison International 22,900 599,694
Enron Corp. 22,900 1,016,188
Firstenergy Corp. 25,000 $ 567,187
FPL Group, Inc. 20,600 881,938
GPU, Inc. 15,300 458,044
Ipalco Enterprises, Inc. 21,300 363,431
MidAmerican Energy Holdings Co. 18,100 609,744
Niagara Mohawk Holdings, Inc. 55,000(a) 766,562
Peco Energy Co. 26,500 920,875
Pinnacle West Capital Corp. 25,600 782,400
Potomac Electric Power Co. 24,300 557,381
Reliant Energy, Inc. 28,500 651,937
Scottish Power PLC ADR 15,298 428,344
Southern Co. 19,600 460,600
Texas Utilities Holdings 17,100 608,119
TNP Enterprises, Inc. 11,800 486,750
13,784,500
Gas Production & Distribution (1.07%)
New Jersey Resources Corp. 4,900 191,406
Peoples Energy Corp. 4,100 137,350
328,756
Holding Offices (2.02%)
Nstar 15,300 619,650
Telephone Communication (36.01%)
AT&T Corp. 21,400 1,086,050
Bell Atlantic 21,000 1,292,812
BellSouth Corp. 29,500 1,380,969
GTE Corp. 16,100 1,136,056
MCI Worldcom, Inc. 25,745(a) 1,366,068
Omnipoint Corp. 4,200(a) 506,625
RCN Corp. 16,100(a) 780,850
SBC Communications, Inc. 26,076 1,271,205
Sprint Corp. 19,000 1,278,937
U.S. West, Inc. 13,200 950,400
11,049,972
Total Common Stocks 28,906,059
Principal
Amount Value
Bond (1.18%)
Motion Picture Production &
Services (1.18%)
Liberty Media Group Convertible
Bond; 4.00%; 11/15/2029 $ 288,000(b) $ 361,440
Commercial Paper (3.67%)
Federal & Federally Sponsored
Credit (3.67%)
Investment in Joint Trade Account,
Federal Home Loan Bank System;
1.50%; 1/3/2000 1,126,344 1,126,344
Total Portfolio Investments (99.05%) 30,393,843
Cash and receivables, net of liabilities (0.95%) 290,303
Total Net Assets (100.00%) $30,684,146
(a) Non-income producing security - No dividend paid during the past twelve
months.
(b) Restricted security - See Note 4 to the financial statements.
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>
<S> <C> <C> <C> <C> <C>
AGGRESSIVE GROWTH ACCOUNT(a) 1999 1998 1997 1996 1995
- ------------------------- ------------------------------ ---- ----
Net Asset Value, Beginning of Period................... $18.33 $16.30 $14.52 $12.94 $10.11
Income from Investment Operations:
Net Investment Income (Operating Loss).............. (.01) .04 .04 .11 .13
Net Realized and Unrealized Gain on Investments..... 7.17 2.99 4.26 3.38 4.31
Total from Investment Operations 7.16 3.03 4.30 3.49 4.44
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.04) (.04) (.11) (.13)
Distributions from Capital Gains.................... (1.60) (.96) (2.48) (1.80) (1.48)
Total Dividends and Distributions (1.60) (1.00) (2.52) (1.91) (1.61)
Net Asset Value, End of Period......................... $23.89 $18.33 $16.30 $14.52 $12.94
Total Return........................................... 39.50% 18.95% 30.86% 28.05% 44.19%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $379,062 $224,058 $149,182 $90,106 $33,643
Ratio of Expenses to Average Net Assets............. .77% .78% .82% .85% .90%
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ (.08)% .22% .29% 1.05% 1.34%
Portfolio Turnover Rate............................. 89.6% 155.6% 172.6% 166.9% 172.9%
ASSET ALLOCATION ACCOUNT(a) 1999 1998 1997 1996 1995
- ------------------------ ------------------------------ ---- ----
Net Asset Value, Beginning of Period................... $12.30 $11.94 $11.48 $11.11 $9.79
Income from Investment Operations:
Net Investment Income............................... .35 .31 .30 .36 .40
Net Realized and Unrealized Gain on Investments..... 2.00 .76 1.72 1.06 1.62
Total from Investment Operations 2.35 1.07 2.02 1.42 2.02
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.35) (.31) (.30) (.36) (.40)
Distributions from Capital Gains.................... (1.07) (.40) (1.26) (.69) (.30)
Total Dividends and Distributions (1.42) (.71) (1.56) (1.05) (.70)
Net Asset Value, End of Period......................... $13.23 $12.30 $11.94 $11.48 $11.11
Total Return........................................... 19.49% 9.18% 18.19% 12.92% 20.66%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $89,711 $84,089 $76,804 $61,631 $41,074
Ratio of Expenses to Average Net Assets............. .85% .89% .89% .87% .89%
Ratio of Net Investment Income to Average Net Assets 2.50% 2.51% 2.55% 3.45% 4.07%
Portfolio Turnover Rate............................. 86.7% 162.7% 131.6% 108.2% 47.1%
BALANCED ACCOUNT(a) 1999 1998 1997 1996 1995
- ---------------- -------------------------------------------------------------------------- ---- ----
Net Asset Value, Beginning of Period................... $16.25 $15.51 $14.44 $13.97 $11.95
Income from Investment Operations:
Net Investment Income............................... .56 .49 .46 .40 .45
Net Realized and Unrealized Gain (Loss) on Investments (.19) 1.33 2.11 1.41 2.44
Total from Investment Operations .37 1.82 2.57 1.81 2.89
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.57) (.49) (.45) (.40) (.45)
Distributions from Capital Gains.................... (.62) (.59) (1.05) (.94) (.42)
Excess Distributions from Capital Gains(d).......... (.02) -- -- -- --
Total Dividends and Distributions (1.21) (1.08) (1.50) (1.34) (.87)
Net Asset Value, End of Period......................... $15.41 $16.25 $15.51 $14.44 $13.97
Total Return........................................... 2.40% 11.91% 17.93% 13.13% 24.58%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $209,747 $198,603 $133,827 $93,158 $45,403
Ratio of Expenses to Average Net Assets............. .58% .59% .61% .63% .66%
Ratio of Net Investment Income to Average Net Assets 3.36% 3.37% 3.26% 3.45% 4.12%
Portfolio Turnover Rate............................. 21.7% 24.2% 69.7% 22.6% 25.7%
See accompanying notes.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
BLUE CHIP ACCOUNT 1999(e)
- ----------------- ----
Net Asset Value, Beginning of Period................... $10.15
Income from Investment Operations:
Net Investment Income............................... .08
Net Realized and Unrealized Gain on Investments..... .24
Total from Investment Operations .32
Less Dividends from Net Investment Income.............. (.09)
Net Asset Value, End of Period......................... $10.38
Total Return........................................... 1.15%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $6,453
Ratio of Expenses to Average Net Assets............. .69%(c)
Ratio of Net Investment Income to Average Net Assets 1.33%(c)
Portfolio Turnover Rate............................. 16.2%(c)
BOND ACCOUNT(a) 1999 1998 1997 1996 1995
- ------------ ------------------------------ ---- ----
Net Asset Value, Beginning of Period................... $12.02 $11.78 $11.33 $11.73 $10.12
Income from Investment Operations:
Net Investment Income............................... .81 .66 .76 .68 .62
Net Realized and Unrealized Gain (Loss) on Investments (1.12) .25 .44 (.40) 1.62
Total from Investment Operations (.31) .91 1.20 .28 2.24
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.82) (.66) (.75) (.68) (.63)
Excess Distributions from Capital Gains(d).......... -- (.01) -- -- --
Total Dividends and Distributions (.82) (.67) (.75) (.68) (.63)
Net Asset Value, End of Period......................... $10.89 $12.02 $11.78 $11.33 $11.73
Total Return........................................... (2.59)% 7.69% 10.60% 2.36% 22.17%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $125,067 $121,973 $81,921 $63,387 $35,878
Ratio of Expenses to Average Net Assets............. .50% .51% .52% .53% .56%
Ratio of Net Investment Income to Average Net Assets 6.78% 6.41% 6.85% 7.00% 7.28%
Portfolio Turnover Rate............................. 40.1% 26.7% 7.3% 1.7% 5.9%
CAPITAL VALUE ACCOUNT(a) 1999 1998 1997 1996 1995
- --------------------- ------------------------------ ---- ----
Net Asset Value, Beginning of Period................... $37.19 $34.61 $29.84 $27.80 $23.44
Income from Investment Operations:
Net Investment Income............................... .78 .71 .68 .57 .60
Net Realized and Unrealized Gain (Loss) on Investments (2.41) 3.94 7.52 5.82 6.69
Total from Investment Operations (1.63) 4.65 8.20 6.39 7.29
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.80) (.71) (.67) (.58) (.60)
Distributions from Capital Gains.................... (3.13) (1.36) (2.76) (3.77) (2.33)
Excess Distributions from Capital Gains(d).......... (.89) -- -- -- --
Total Dividends and Distributions (4.82) (2.07) (3.43) (4.35) (2.93)
Net Asset Value, End of Period......................... $30.74 $37.19 $34.61 $29.84 $27.80
Total Return........................................... (4.29)% 13.58% 28.53% 23.50% 31.91%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $367,927 $385,724 $285,231 $205,019 $135,640
Ratio of Expenses to Average Net Assets............. .43% .44% .47% .49% .51%
Ratio of Net Investment Income to Average Net Assets 2.05% 2.07% 2.13% 2.06% 2.25%
Portfolio Turnover Rate............................. 43.4% 22.0% 23.4% 48.5% 49.2%
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
GOVERNMENT SECURITIES ACCOUNT(a) 1999 1998 1997 1996 1995
- ----------------------------- ------------------------------ ---- ----
Net Asset Value, Beginning of Period................... $11.01 $10.72 $10.31 $10.55 $9.38
Income from Investment Operations:
Net Investment Income............................... .71 .60 .66 .59 .60
Net Realized and Unrealized Gain (Loss) on Investments (.74) .28 .41 (.24) 1.18
Total from Investment Operations (.03) .88 1.07 .35 1.78
Less Dividends from Net Investment Income.............. (.72) (.59) (.66) (.59) (.61)
Net Asset Value, End of Period......................... $10.26 $11.01 $10.72 $10.31 $10.55
Total Return........................................... (.29)% 8.27% 10.39% 3.35% 19.07%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $137,787 $141,317 $94,322 $85,100 $50,079
Ratio of Expenses to Average Net Assets............. .50% .50% .52% .52% .55%
Ratio of Net Investment Income to Average Net Assets 6.16% 6.15% 6.37% 6.46% 6.73%
Portfolio Turnover Rate............................. 19.7% 11.0% 9.0% 8.4% 9.8%
GROWTH ACCOUNT(a) 1999 1998 1997 1996 1995
- -------------- ------------------------------ ---- ----
Net Asset Value, Beginning of Period................... $20.46 $17.21 $13.79 $12.43 $10.10
Income from Investment Operations:
Net Investment Income............................... .14 .21 .18 .16 .17
Net Realized and Unrealized Gain on Investments..... 3.20 3.45 3.53 1.39 2.42
Total from Investment Operations 3.34 3.66 3.71 1.55 2.59
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.14) (.21) (.18) (.16) (.17)
Distributions from Capital Gains.................... (.10) (.20) (.10) (.03) (.09)
Excess Distributions from Capital Gains(d).......... -- -- (.01) -- --
Total Dividends and Distributions (.24) (.41) (.29) (.19) (.26)
Net Asset Value, End of Period......................... $23.56 $20.46 $17.21 $13.79 $12.43
Total Return........................................... 16.44% 21.36% 26.96% 12.51% 25.62%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $345,882 $259,828 $168,160 $99,612 $42,708
Ratio of Expenses to Average Net Assets............. .45% .48% .50% .52% .58%
Ratio of Net Investment Income to Average Net Assets .67% 1.25% 1.34% 1.61% 2.08%
Portfolio Turnover Rate............................. 65.7% 9.0% 15.4% 2.0% 6.9%
HIGH YIELD ACCOUNT(a) 1999 1998 1997 1996 1995
- ------------------ ------------------------------ ---- ----
Net Asset Value, Beginning of Period................... $8.06 $8.90 $8.72 $8.39 $7.91
Income from Investment Operations:
Net Investment Income............................... .72 .80 .76 .80 .76
Net Realized and Unrealized Gain (Loss) on Investments (.58) (.85) .18 .30 .51
Total from Investment Operations .14 (.05) .94 1.10 1.27
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.72) (.79) (.76) (.77) (.77)
Excess Distributions from Net Investment Income (d). (.04) -- -- -- (.02)
Total Dividends and Distributions (.76) (.79) (.76) (.77) (.79)
Net Asset Value, End of Period......................... $7.44 $8.06 $8.90 $8.72 $8.39
Total Return........................................... 1.76% (.56)% 10.75% 13.13% 16.08%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $13,678 $14,043 $15,837 $13,740 $11,830
Ratio of Expenses to Average Net Assets............. .67% .68% .68% .70% .73%
Ratio of Net Investment Income to Average Net Assets 8.52% 8.68% 8.50% 9.21% 9.09%
Portfolio Turnover Rate............................. 93.8% 87.8% 32.0% 32.0% 35.1%
See accompanying notes.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
INTERNATIONAL ACCOUNT(a) 1999 1998 1997 1996 1995
- --------------------- ------------------------------ ---- ----
Net Asset Value, Beginning of Period................... $14.51 $13.90 $13.02 $10.72 $9.56
Income from Investment Operations:
Net Investment Income............................... .48 .26 .23 .22 .19
Net Realized and Unrealized Gain on Investments..... 3.14 1.11 1.35 2.46 1.16
Total from Investment Operations 3.62 1.37 1.58 2.68 1.35
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.47) (.25) (.23) (.22) (.18)
Distributions from Capital Gains.................... (1.46) (.51) (.47) (.16) (.01)
Excess Distributions from Capital Gains(d).......... (.25) -- -- -- --
Total Dividends and Distributions (2.18) (.76) (.70) (.38) (.19)
Net Asset Value, End of Period......................... $15.95 $14.51 $13.90 $13.02 $10.72
Total Return........................................... 25.93% 9.98% 12.24% 25.09% 14.17%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $197,235 $153,588 $125,289 $71,682 $30,566
Ratio of Expenses to Average Net Assets............. .78% .77% .87% .90% .95%
Ratio of Net Investment Income to Average Net Assets 3.11% 1.80% 1.92% 2.28% 2.26%
Portfolio Turnover Rate............................. 65.5% 33.9% 22.7% 12.5% 15.6%
INTERNATIONAL SMALLCAP ACCOUNT 1999 1998(f)
- ------------------------------ -----------------
Net Asset Value, Beginning of Period................... $9.00 $9.97
Income from Investment Operations:
Net Investment Income (Operating Loss).............. (.02) .01
Net Realized and Unrealized Gain (Loss) on Investments 8.41 (.95)
Total from Investment Operations 8.39 (.94)
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.03)
Distributions from Capital Gains.................... (.73) --
Net Asset Value, End of Period......................... $16.66 $9.00
Total Return........................................... 93.81% (10.37)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $40,040 $13,075
Ratio of Expenses to Average Net Assets............. 1.32% 1.34%(c)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ (.28)% .24%(c)
Portfolio Turnover Rate............................. 241.2% 60.3%(c)
LARGECAP GROWTH ACCOUNT 1999(e)
- ----------------------- ----
Net Asset Value, Beginning of Period................... $9.93
Income from Investment Operations:
Net Investment Income (Operating Loss)(g)........... (.03)
Net Realized and Unrealized Gain (Loss) on Investments 3.36
Total from Investment Operations 3.33
Net Asset Value, End of Period......................... $13.26
Total Return........................................... 32.47%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $7,045
Ratio of Expenses to Average Net Assets(g).......... 1.16%(c)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ (.47)%(c)
Portfolio Turnover Rate............................. 39.6%(c)
</TABLE>
FINANCIAL HIGHLIGHTS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
<TABLE>
<CAPTION>
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<S> <C> <C> <C> <C> <C>
MICROCAP ACCOUNT 1999 1998(f)
- ---------------- -----------------
Net Asset Value, Beginning of Period................... $8.17 $10.04
Income from Investment Operations:
Net Investment Income(g)............................ .02 .03
Net Realized and Unrealized Gain (Loss) on Investments (.11) (1.86)
Total from Investment Operations (.09) (1.83)
Less Dividends from Net Investment Income.............. (.01) (.04)
Net Asset Value, End of Period......................... $8.07 $8.17
Total Return........................................... (1.07)% (18.42)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $6,418 $5,384
Ratio of Expenses to Average Net Assets(g).......... 1.06% 1.38%(c)
Ratio of Net Investment Income to Average Net Assets 0.22% 0.57%(c)
Portfolio Turnover Rate............................. 88.9% 55.3%(c)
MIDCAP ACCOUNT(a) 1999 1998 1997 1996 1995
- -------------- ------------------------------ ---- ----
Net Asset Value, Beginning of Period................... $34.37 $35.47 $29.74 $25.33 $19.97
Income from Investment Operations:
Net Investment Income............................... .12 .22 .24 .22 .22
Net Realized and Unrealized Gain on Investments..... 4.20 .94 6.48 5.07 5.57
Total from Investment Operations 4.32 1.16 6.72 5.29 5.79
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.12) (.22) (.23) (.22) (.22)
Distributions from Capital Gains.................... (1.67) (2.04) (.76) (.66) (.21)
Total Dividends and Distributions (1.79) (2.26) (.99) (.88) (.43)
Net Asset Value, End of Period......................... $36.90 $34.37 $35.47 $29.74 $25.33
Total Return........................................... 13.04% 3.69% 22.75% 21.11% 29.01%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $262,350 $259,470 $224,630 $137,161 $58,520
Ratio of Expenses to Average Net Assets............. .61% .62% .64% .66% .70%
Ratio of Net Investment Income to Average Net Assets .32% .63% .79% 1.07% 1.23%
Portfolio Turnover Rate............................. 79.6% 26.9% 7.8% 8.8% 13.1%
MIDCAP GROWTH ACCOUNT 1999 1998(f)
- --------------------- -----------------
Net Asset Value, Beginning of Period................... $9.65 $9.94
Income from Investment Operations:
Net Investment Income (Operating Loss)(g)........... .02 (.01)
Net Realized and Unrealized Gain (Loss) on Investments 1.01 (.28)
Total from Investment Operations 1.03 (.29)
Less Dividends from Net Investment Income.............. (.02) --
Net Asset Value, End of Period......................... $10.66 $9.65
Total Return........................................... 10.67% (3.40%)(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $14,264 $8,534
Ratio of Expenses to Average Net Assets(g).......... .96% 1.27%(c)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ .26% (.14)%(c)
Portfolio Turnover Rate............................. 74.1% 91.9%(c)
See accompanying notes.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
MIDCAP VALUE ACCOUNT 1999(e)
- -------------------- ----
Net Asset Value, Beginning of Period................... $10.09
Income from Investment Operations:
Net Investment Income(g)............................ .02
Net Realized and Unrealized Gain on Investments..... 1.24
Total from Investment Operations 1.26
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.02)
Distributions from Capital Gains.................... (.22)
Total from Dividends and Distributions (.24)
Net Asset Value, End of Period......................... $11.11
Total Return........................................... 10.24%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $5,756
Ratio of Expenses to Average Net Assets(g).......... 1.19%(c)
Ratio of Net Investment Income to Average Net Assets .30%(c)
Portfolio Turnover Rate............................. 154.0%(c)
MONEY MARKET ACCOUNT(a) 1999 1998 1997 1996 1995
- -------------------- ------------------------------ ---- ----
Net Asset Value, Beginning of Period................... $1.000 $1.000 $1.000 $1.000 $1.000
Income from Investment Operations:
Net Investment Income............................... .048 .051 .051 .049 .054
Less Dividends from Net Investment Income.............. (.048) (.051) (.051) (.049) (.054)
Net Asset Value, End of Period......................... $1.000 $1.000 $1.000 $1.000 $1.000
Total Return........................................... 4.84% 5.20% 5.04% 5.07% 5.59%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $120,924 $83,263 $47,315 $46,244 $32,670
Ratio of Expenses to Average Net Assets............. .52% .52% .55% .56% .58%
Ratio of Net Investment Income to Average Net Assets 4.79% 5.06% 5.12% 5.00% 5.32%
REAL ESTATE ACCOUNT 1999 1998(f)
- ------------------- -----------------
Net Asset Value, Beginning of Period................... $9.07 $10.01
Income from Investment Operations:
Net Investment Income............................... .43 .32
Net Realized and Unrealized Gain (Loss) on Investments (.85) (.97)
Total from Investment Operations (.42) (.65)
Less Dividends from Net Investment Income.............. (.45) (.29)
Net Asset Value, End of Period......................... $8.20 $9.07
Total Return........................................... (4.48)% (6.56)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $10,560 $10,909
Ratio of Expenses to Average Net Assets............. .99% 1.00%(c)
Ratio of Net Investment Income to Average Net Assets 4.92% 5.40%(c)
Portfolio Turnover Rate............................. 101.9% 5.6%(c)
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
SMALLCAP ACCOUNT 1999 1998(f)
- ---------------- -----------------
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 3.52 (2.06)
Total from Investment Operations 3.52 (2.06)
Less Distributions from Capital Gains.................. (.99) --
Net Asset Value, End of Period......................... $10.74 $8.21
Total Return........................................... 43.58% (20.51)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $26,110 $12,094
Ratio of Expenses to Average Net Assets............. .91% .98%(c)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ .05% (.05)%(c)
Portfolio Turnover Rate............................. 111.1% 45.2%(c)
SMALLCAP GROWTH ACCOUNT 1999 1998(f)
- ----------------------- -----------------
Net Asset Value, Beginning of Period................... $10.10 $9.84
Income from Investment Operations:
Net Investment Income (Operating Loss)(g)........... (.05) (.04)
Net Realized and Unrealized Gain on Investments..... 9.70 .30
Total from Investment Operations 9.65 .26
Less Distributions from Capital Gains.................. (.19) --
Net Asset Value, End of Period......................... $19.56 $10.10
Total Return........................................... 95.69% 2.96%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $39,675 $8,463
Ratio of Expenses to Average Net Assets(g).......... 1.05% 1.31%(c)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ (.61)% (.80)%(c)
Portfolio Turnover Rate............................. 98.0% 166.5%(c)
SMALLCAP VALUE ACCOUNT 1999 1998(f)
- ---------------------- -----------------
Net Asset Value, Beginning of Period................... $8.34 $9.84
Income from Investment Operations:
Net Investment Income(g)............................ .06 .03
Net Realized and Unrealized Gain (Loss) on Investments 1.72 (1.50)
Total from Investment Operations 1.78 (1.47)
Less Dividends from Net Investment Income.............. (.06) (.03)
Net Asset Value, End of Period......................... $10.06 $8.34
Total Return........................................... 21.45% (15.06)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $11,080 $6,895
Ratio of Expenses to Average Net Assets(g).......... 1.16% 1.56%(c)
Ratio of Net Investment Income to Average Net Assets .82% .73%(c)
Portfolio Turnover Rate............................. 89.7% 53.4%(c)
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 1999(e)
- ----------------------- ----
Net Asset Value, Beginning of Period................... $9.83
Income from Investment Operations:
Net Investment Income(g)............................ .06
Net Realized and Unrealized Gain on Investments..... .97
Total from Investment Operations 1.03
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.07)
Distributions from Capital Gains.................... (.08)
Total from Dividends and Distributions (.15)
Net Asset Value, End of Period......................... $10.71
Total Return........................................... 8.93%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ 46,088
Ratio of Expenses to Average Net Assets(g).......... .40%(c)
Ratio of Net Investment Income to Average Net Assets 1.41%(c)
Portfolio Turnover Rate............................. 3.8%(c)
UTILITIES ACCOUNT 1999 1998(f)
- ----------------- -----------------
Net Asset Value, Beginning of Period................... $10.93 $9.61
Income from Investment Operations:
Net Investment Income............................... .23 .15
Net Realized and Unrealized Gain on Investments..... .02 1.35
Total from Investment Operations .25 1.50
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.23) (.18)
Distributions from Captial Gains.................... (.05) --
Total Dividends and Distributions (.28) (.18)
Net Asset Value, End of Period......................... $10.90 $10.93
Total Return........................................... 2.29% 15.36%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $30,684 $18,298
Ratio of Expenses to Average Net Assets............. .64% .69%(c)
Ratio of Net Investment Income to Average Net Assets 2.52% 2.93%(c)
Portfolio Turnover Rate............................. 23.0% 9.5%(c)
</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) Total return amounts have not been annualized.
(c) Computed on an annualized basis.
(d) 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.
(e) Period from May 1, 1999, date shares first offered to the public, through
December 31, 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>
Blue Chip Account April 15, 1999 $.01 $.14
LargeCap Growth Account April 15, 1999 -- (.07)
MidCap Value Account April 22, 1999 -- .09
Stock Index 500 Account April 22, 1999 .01 (.18)
</TABLE>
(f) 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>
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>
(g) 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 December 31 Income (Loss) Assets Waived
<S> <C> <C> <C> <C>
LargeCap Growth Account 1999 $(.04) 1.23% $ 2,261
MicroCap Account 1999 (.01) 1.28 13,239
MidCap Growth Account 1999 .01 1.09 14,359
MidCap Value Account 1999 .01 1.26 2,360
SmallCap Growth Account 1999 (.05) 1.07 3,049
SmallCap Value Account 1999 .04 1.44 23,900
Stock Index 500 Account 1999 .05 .49 15,231
</TABLE>
REPORT OF INDEPENDENT AUDITORS
The Boards of Directors and Shareholders
Principal Variable Contracts Fund, Inc.
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Principal Variable Contracts Fund, Inc.
(comprised of the Aggressive Growth, Asset Allocation, Balanced, Blue Chip,
Bond, Capital Value, Government Securities, Growth, High Yield, International,
International SmallCap, LargeCap Growth, MicroCap, MidCap, MidCap Growth, MidCap
Value, Money Market, Real Estate, SmallCap, SmallCap Growth, SmallCap Value,
Stock Index 500 and Utilities Accounts) as of December 31, 1999, and the related
statements of operations, statements of changes in net assets and financial
highlights for each of the periods indicated therein. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the custodians and brokers. As to securities relating to uncompleted
transactions, we performed other audit procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective accounts constituting the Principal Variable Contracts Fund,
Inc. at December 31, 1999, and the results of their operations, the changes in
their net assets and the financial highlights for each of the periods indicated
therein, in conformity with accounting principles generally accepted in the
United States.
/s/Ernst & Young LLP
Des Moines, Iowa
January 21, 2000
CONTRACT OWNER METING RESULTS
SPECIAL MEETING OF CONTRACT OWNERS PRINCIPAL VARIABLE CONTRACTS FUND, INC.
HELD NOVEMBER 2, 1999
(ALL ACCOUNTS)
1. Election of the Board of Directors (all accounts).
For Withheld
Aschenbrenner 214,153,668 7,681,894
Davis 213,384,759 8,450,803
Eucher 214,054,189 7,781,374
Ferguson 214,233,666 7,601,896
Gilbert 213,996,784 7,838,778
Griswell 214,074,126 7,761,436
Kimball 214,182,229 7,653,333
Lukavsky 214,207,878 7,627,685
2. Ratification of selection of Ernst & Young LLP as independent public
auditors.
Account In Favor Opposed Abstain
All Accounts 214,555,450 2,167,342 5,112,770
3. Amendment of Management Agreement to:
A. Clarify changes to delegation provision.
Account In Favor Opposed Abstain
Aggressive Growth 8,204,057 286,144 353,510
Asset Allocation 3,690,884 136,879 118,876
Balanced 26,397,975 988,041 1,169,420
Blue Chip 23,270 0 0
Bond 15,101,971 791,567 611,794
Capital Value 36,982,739 2,873,719 1,428,436
Government Securities 18,070,552 905,528 996,735
Growth 30,855,834 1,360,926 1,769,791
High Yield 21,010 0 0
International 17,075,445 887,517 1,585,709
International SmallCap 731,450 27,176 10,760
LargeCap Growth 5,530 2,191 3,134
MicroCap 187,527 25,012 11,844
MidCap 22,092,299 1,131,257 1,829,359
MidCap Growth 570,302 21,360 8,793
MidCap Value 5,452 2,137 1,545
Money Market 16,324,159 590,873 514,174
Real Estate 251,214 6,676 3,312
SmallCap 909,010 23,001 32,351
SmallCap Growth 619,570 33,871 15,409
SmallCap Value 457,961 17,582 8,579
Stock Index 500 1,136,681 142,903 30,672
Utilities 1,325,475 17,970 18,660
B. Modify management fee schedule.
Account In Favor Opposed Abstain
Capital Value 30,703,721 9,087,748 1,493,425
Growth 27,786,657 4,338,377 1,861,518
International 15,476,186 2,377,556 1,694,929
4. Approval of changes to fundamental investment restrictions regarding:
A. Options and Financial Futures.
Account In Favor Opposed Abstain
Capital Value 34,297,825 5,450,657 1,536,412
B. Short Sales.
Account In Favor Opposed Abstain
Capital Value 34,226,217 5,562,108 1,496,570
C. Lending of Portfolio Securities.
Account In Favor Opposed Abstain
Capital Value 34,803,671 4,982,271 1,498,952
Money Market 16,118,394 653,729 657,083
D. Diversification.
Account In Favor Opposed Abstain
Balanced 26,419,600 1,101,693 1,034,143
Bond 15,093,176 521,907 890,250
Capital Value 36,815,801 3,070,710 1,398,383
High Yield 21,010 0 0
MidCap 22,084,967 1,072,713 1,895,235
5. Approval of a proposal to permit the Manager to select and contract with
sub-advisers for certain Accounts after approval by the Board of Directors
but without obtaining shareholder approval.
Account In Favor Opposed Abstain
Aggressive Growth 8,046,718 316,309 480,684
Asset Allocation 3,743,863 72,588 130,187
LargeCap Growth 5,530 2,191 3,134
MicroCap 197,808 16,548 10,028
MidCap Growth 580,235 12,767 7,453
MidCap Value 5,452 2,137 1,545
SmallCap Growth 614,669 38,038 16,142
SmallCap Value 472,697 2,883 6,541
