A MESSAGE TO PRINCIPAL VARIABLE LIFE AND VARIABLE ANNUITY CONTRACT OWNERS
Dear Contract Owner,
Now that we're in the third quarter, we want to take this opportunity to give
you some insight on how we fared the first half of 2000.
Following record expansion, both the U.S. and international markets' growth
rates have reached their peak and now are in the process of coming back to
reality. The primary factors that have caused the U.S. economy to slow down are
the delayed impact of past interest rate increases and a fear of rising interest
rates.
Both the NASDAQ and the Standard and Poor's 500 have seen extreme volatility. On
March 10 the NASDAQ peaked but quickly dropped 37% over the next two months.
Investors questioning the market value of many former high performers caused
this volatility.
The conditions in Europe and emerging markets have been similar to those in the
U.S. European, Japanese, and emerging markets all had negative performance in
the second quarter.
The overall decrease in interest rates and the slowing of both the U.S. and
foreign markets has the potential to trigger a bond rally. Corporate bonds have
already shown stronger performance since mid-May.
No matter what the market is doing we want to stress the importance of the
following strategy: invest for the long term, invest consistently and at regular
intervals, and diversify. But remember, no investment strategy will assure a
profit in a declining market.
We thank you for letting us serve you. We're committed to giving your registered
representative the products and services needed to help you reach your financial
goals.
The Standard & Poor's 500 Index is a market capitalization weighted price index
composed of 500 widely-held common stocks listed on the New York Stock Exchange,
American Stock Exchange and the over-the-counter market. Investment cannot be
made directly into an index.
The NASDAQ Index is a market-weighted index of all common stocks listed on the
National Association of Securities Dealers Automated Quotation system.
Investment cannot be made directly into an index.
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....................................... 38
Balanced Account............................................... 45
Blue Chip Account.............................................. 50
Bond Account................................................... 51
Capital Value Account.......................................... 54
Government Securities Account.................................. 56
Growth Account................................................. 57
High Yield Account............................................. 58
International Account.......................................... 60
International SmallCap Account................................. 62
LargeCap Growth Account........................................ 65
MicroCap Account............................................... 66
MidCap Account................................................. 68
MidCap Growth Account.......................................... 70
MidCap Value Account........................................... 73
Money Market Account........................................... 75
Real Estate Account............................................ 78
SmallCap Account............................................... 79
SmallCap Growth Account........................................ 82
SmallCap Value Account......................................... 84
Stock Index 500 Account........................................ 91
Utilities Account.............................................. 98
Financial Highlights................................................ 100
June 30, 2000
STATEMENTS OF ASSETS AND LIABILITIES
(unaudited)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
<TABLE>
<CAPTION>
Aggressive Asset Blue
Growth Allocation Balanced Chip
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $313,036,146 $75,395,821 $171,772,593 $ 5,976,289
Assets
Investment in securities -- at value (Note 4)......... $424,399,345 $88,570,059 $179,169,594 $ 6,506,003
Cash ................................................. 14,946,125 3,735,215 383,660 10,000
Receivables:
Dividends and interest............................. 271,553 629,228 796,116 6,081
Investment securities sold......................... 281,119 51,974 917,157 --
Capital Shares sold................................ 43,316 56 7,212 --
Prepaid expenses...................................... -- -- -- 2,984
Total Assets 439,941,458 92,986,532 181,273,739 6,525,068
Liabilities
Accrued expenses...................................... 28,378 19,174 428 --
Payables:
Investment securities purchased.................... 1,574,444 154,891 341,229 --
Capital Shares reacquired.......................... 19,507 43,449 64,535 985
Total Liabilities 1,622,329 217,514 406,192 985
Net Assets Applicable to Outstanding Shares........... $438,319,129 $92,769,018 $180,867,547 $ 6,524,083
Net Assets Consist of:
Capital Stock......................................... $ 178,781 $ 68,046 $ 116,463 $ 6,490
Additional paid-in capital............................ 306,854,179 74,122,561 168,150,644 6,467,460
Accumulated undistributed net investment
income (operating loss)............................ (69,278) 1,112,486 2,638,175 17,468
Accumulated undistributed (overdistributed)
net realized gain (loss) from investment and
foreign currency transactions ..................... 19,992,248 4,291,687 2,565,264 (497,049)
Net unrealized appreciation (depreciation)
of investments..................................... 111,363,199 13,174,238 7,397,001 529,714
Net unrealized appreciation on translation of assets
and liabilities in foreign currencies.............. -- -- -- --
Total Net Assets $438,319,129 $92,769,018 $180,867,547 $ 6,524,083
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......................... 17,878,145 6,804,585 11,646,340 648,967
Net Asset Value Per Share............................. $24.52 $13.63 $15.53 $10.05
</TABLE>
<TABLE>
<CAPTION>
Capital Government
Bond Value Securities Growth
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $115,052,715 $293,351,816 $122,272,659 $285,625,377
Assets
Investment in securities -- at value (Note 4)......... $109,450,623 $292,504,875 $119,404,631 $345,038,676
Cash ................................................. 10,001 10,001 14,702 10,001
Receivables:
Dividends and interest............................. 2,283,004 450,784 1,051,622 53,654
Investment securities sold......................... -- 257,861 -- 2,625,096
Capital Shares sold................................ 10,925 31,119 24,306 76,693
Prepaid expenses...................................... 452 -- -- --
Total Assets 111,755,005 293,254,640 120,495,261 347,804,120
Liabilities
Accrued expenses...................................... -- 8,425 2,863 11,022
Payables:
Investment securities purchased.................... -- 5,651,324 1,005,937 2,282,479
Capital Shares reacquired.......................... 48,174 48,356 70,629 131,306
Total Liabilities 48,174 5,708,105 1,079,429 2,424,807
Net Assets Applicable to Outstanding Shares........... $111,706,831 $287,546,535 $119,415,832 $345,379,313
Net Assets Consist of:
Capital Stock......................................... $ 101,737 $ 100,289 $ 112,568 $ 159,183
Additional paid-in capital............................ 118,429,709 281,753,472 119,126,153 250,886,740
Accumulated undistributed net investment
income (operating loss)............................ 4,259,681 2,757,712 3,936,538 (179,091)
Accumulated undistributed (overdistributed)
net realized gain (loss) from investment and
foreign currency transactions ..................... (5,482,204) 3,782,003 (891,399) 35,099,182
Net unrealized appreciation (depreciation)
of investments..................................... (5,602,092) (846,941) (2,868,028) 59,413,299
Net unrealized appreciation on translation of assets
and liabilities in foreign currencies.............. -- -- -- --
Total Net Assets $111,706,831 $287,546,535 $119,415,832 $345,379,313
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000 100,000,000 100,000,000
Shares issued and outstanding......................... 10,173,667 10,028,910 11,256,792 15,918,250
Net Asset Value Per Share............................. $10.98 $28.67 $10.61 $21.70
</TABLE>
<TABLE>
<CAPTION>
High
Yield International
Account Account
<S> <C> <C>
Investment in securities -- at cost................... $13,709,553 $177,436,099
Assets
Investment in securities -- at value (Note 4)......... $12,420,271 $209,264,069
Cash ................................................. 242,000 695,669
Receivables:
Dividends and interest............................. 248,854 584,479
Investment securities sold......................... 797,375 1,656,403
Capital Shares sold................................ -- 13,487
Prepaid expenses...................................... 936 --
Total Assets 13,709,436 212,214,107
Liabilities
Accrued expenses...................................... -- 42,830
Payables:
Investment securities purchased.................... 298,818 2,074,335
Capital Shares reacquired.......................... 33 17,705
Total Liabilities 298,851 2,134,870
Net Assets Applicable to Outstanding Shares........... $13,410,585 $210,079,237
Net Assets Consist of:
Capital Stock......................................... $ 18,320 $ 130,086
Additional paid-in capital............................ 16,109,918 171,280,573
Accumulated undistributed net investment
income (operating loss)............................ 502,290 1,054,644
Accumulated undistributed (overdistributed)
net realized gain (loss) from investment and
foreign currency transactions ..................... (1,930,661) 5,773,134
Net unrealized appreciation (depreciation)
of investments..................................... (1,289,282) 31,827,970
Net unrealized appreciation on translation of assets
and liabilities in foreign currencies.............. -- 12,830
Total Net Assets $13,410,585 $210,079,237
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000
Shares issued and outstanding......................... 1,832,050 13,008,601
Net Asset Value Per Share............................. $7.32 $16.15
</TABLE>
<TABLE>
<CAPTION>
International LargeCap
SmallCap Growth MicroCap MidCap
Account Account Account Account
<S> <C> <C> <C> <C>
Investment in securities -- at cost................... $57,100,888 $5,320,561 $7,761,479 $217,446,476
Assets
Investment in securities -- at value (Note 4)......... $59,969,264 $7,696,945 $8,118,790 $263,150,508
Cash ................................................. 674,584 227,179 444,200 10,000
Receivables:
Dividends and interest............................. 56,822 419 9,995 53,473
Investment securities sold......................... 981,019 -- 88,640 550,470
Capital Shares sold................................ 170,810 2,670 -- 48,919
Prepaid expenses...................................... 17,577 1,892 -- 802
Total Assets 61,870,076 7,929,105 8,661,625 263,814,172
Liabilities
Accrued expenses...................................... -- -- 1,942 --
Payables:
Investment securities purchased.................... 3,023,496 -- 64,644 --
Capital Shares reacquired.......................... -- -- 58,574 18,165
Foreign currency contract.......................... 70,346 -- -- --
Total Liabilities 3,093,842 -- 125,160 18,165
Net Assets Applicable to Outstanding Shares........... $58,776,234 $7,929,105 $8,536,465 $263,796,007
Net Assets Consist of:
Capital Stock......................................... $ 35,440 $ 5,580 $ 9,503 $ 72,627
Additional paid-in capital............................ 47,213,910 5,701,547 8,827,798 200,927,513
Accumulated undistributed net investment
income (operating loss)............................ 55,405 (25,650) 26,863 76,962
Accumulated undistributed net realized
gain (loss) on investment transactions............. 8,601,724 (128,756) (685,010) 17,014,873
Net unrealized appreciation of investments............ 2,868,376 2,376,384 357,311 45,704,032
Net unrealized appreciation on translation of assets
and liabilities in foreign currencies.............. 1,379 -- -- --
Total Net Assets $58,776,234 $7,929,105 $8,536,465 $263,796,007
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......................... 3,543,950 558,008 950,257 7,262,724
Net Asset Value Per Share............................. $16.58 $14.21 $8.98 $36.32
</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................... $18,266,969 $5,782,641 $104,191,339 $11,919,133
Assets
Investment in securities -- at value (Note 4)......... $18,838,292 $6,172,018 $104,191,339 $12,841,369
Cash ................................................. 535,278 161,009 54,426 10,000
Receivables:
Dividends and interest............................. 12,577 6,984 251,658 105,369
Investment securities sold......................... 9,178 15,986 -- 211,823
Capital Shares sold................................ -- 5,152 211,486 12,516
Prepaid expenses...................................... -- 1,792 -- 1,315
Total Assets 19,395,325 6,362,941 104,708,909 13,182,392
Liabilities
Accrued expenses...................................... 3,243 -- 1,627 --
Payables:
Investment securities purchased.................... -- 83,025 -- --
Capital Shares reacquired.......................... 28,119 -- 403,704 --
Foreign currency contract.......................... -- -- -- --
Total Liabilities 31,362 83,025 405,331 --
Net Assets Applicable to Outstanding Shares........... $19,363,963 $6,279,916 $104,303,578 $13,182,392
Net Assets Consist of:
Capital Stock......................................... $ 16,956 $ 5,631 $ 1,043,036 $ 14,019
Additional paid-in capital............................ 16,740,751 5,640,384 103,260,542 13,606,658
Accumulated undistributed net investment
income (operating loss)............................ 29,808 5,808 -- 310,872
Accumulated undistributed net realized
gain (loss) on investment transactions............. 2,005,125 238,716 -- (1,671,393)
Net unrealized appreciation of investments............ 571,323 389,377 -- 922,236
Net unrealized appreciation on translation of assets
and liabilities in foreign currencies.............. -- -- -- --
Total Net Assets $19,363,963 $6,279,916 $104,303,578 $13,182,392
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......................... 1,695,568 563,060 104,303,578 1,401,922
Net Asset Value Per Share............................. $11.42 $11.15 $1.00 $9.40
</TABLE>
<TABLE>
<CAPTION>
SmallCap
SmallCap Growth
Account Account
<S> <C> <C>
Investment in securities -- at cost................... $36,219,026 $61,899,519
Assets
Investment in securities -- at value (Note 4)......... $36,295,075 $75,467,566
Cash ................................................. 10,000 10,842,165
Receivables:
Dividends and interest............................. 19,023 193
Investment securities sold......................... -- 1,311,445
Capital Shares sold................................ 46,125 70,797
Prepaid expenses...................................... -- --
Total Assets 36,370,223 87,692,166
Liabilities
Accrued expenses...................................... 554 5,327
Payables:
Investment securities purchased.................... 489,435 4,150,749
Capital Shares reacquired.......................... -- --
Foreign currency contract.......................... -- --
Total Liabilities 489,989 4,156,076
Net Assets Applicable to Outstanding Shares........... $35,880,234 $83,536,090
Net Assets Consist of:
Capital Stock......................................... $ 32,863 $ 37,711
Additional paid-in capital............................ 31,964,097 62,378,894
Accumulated undistributed net investment
income (operating loss)............................ 36,228 (199,669)
Accumulated undistributed net realized
gain (loss) on investment transactions............. 3,770,997 7,751,107
Net unrealized appreciation of investments............ 76,049 13,568,047
Net unrealized appreciation on translation of assets
and liabilities in foreign currencies.............. -- --
Total Net Assets $35,880,234 $83,536,090
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000
Shares issued and outstanding......................... 3,286,348 3,771,112
Net Asset Value Per Share............................. $10.92 $22.15
</TABLE>
<TABLE>
<CAPTION>
SmallCap Stock Index
Value 500 Utilities
Account Account Account
<S> <C> <C> <C>
Investment in securities -- at cost................... $12,541,312 $58,297,227 $34,009,357
Assets
Investment in securities -- at value (Note 4)......... $12,735,606 $60,925,646 $33,690,004
Cash ................................................. 629,991 114,922 10,886
Receivables:
Dividends and interest............................. 17,332 45,154 56,506
Investment securities sold..... -- 5,613 518,911
Capital Shares sold................................ 182 103,110 8,439
Prepaid expenses...................................... -- 6,108 --
Variation margin on futures contracts (Note 7)........ -- 10,100 --
Total Assets 13,383,111 61,210,653 34,284,746
Liabilities
Accrued expenses...................................... 4,339 -- 248
Payables:
Investment securities purchased.................... 4,800 49,204 780,567
Capital Shares reacquired.......................... 7,132 6,242 --
Total Liabilities 16,271 55,446 780,815
Net Assets Applicable to Outstanding Shares........... $13,366,840 $61,155,207 $33,503,931
Net Assets Consist of:
Capital Stock......................................... $ 12,674 $ 57,823 $ 30,769
Additional paid-in capital............................ 11,774,676 58,354,783 32,121,574
Accumulated undistributed net investment income....... 61,978 276,663 376,100
Accumulated undistributed (overdistributed) net
realized gain on investment transactions........... 1,323,218 (163,356) 1,294,841
Net unrealized appreciation (depreciation)
of investments..................................... 194,294 2,629,294 (319,353)
Total Net Assets $13,366,840 $61,155,207 $33,503,931
Capital Stock (par value: $.01 a share)
Shares authorized..................................... 100,000,000 100,000,000 100,000,000
Shares issued and outstanding......................... 1,267,408 5,782,280 3,076,857
Net Asset Value Per Share............................. $10.55 $10.58 $10.89
See accompanying notes.
</TABLE>
Six Months Ended June 30, 2000
STATEMENTS OF OPERATIONS
(unaudited)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
<TABLE>
<CAPTION>
Aggressive Asset Blue
Growth Allocation Balanced Chip
Account Account Account Account
Net Investment Income
Income:
<S> <C> <C> <C> <C>
Dividends............................................ $ 1,203,524 $ 274,842 $ 787,795 $ 35,971
Withholding tax on foreign dividends................. -- -- -- --
Interest............................................. 203,408 1,221,958 2,407,622 2,824
Total Income 1,406,932 1,496,800 3,195,417 38,795
Expenses:
Management and investment advisory fees (Note 3)..... 1,449,170 360,560 532,504 18,629
Custodian fees....................................... 14,071 18,384 2,535 981
Directors' fees...................................... 3,260 3,186 3,272 1,614
Other................................................ 9,709 2,184 7,721 103
Total Expenses 1,476,210 384,314 546,032 21,327
Net Investment Income (Operating Loss) (69,278) 1,112,486 2,649,385 17,468
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 20,085,462 4,327,725 2,810,716 (465,302)
Foreign currency transactions........................ -- -- -- --
Change in unrealized appreciation/depreciation of:
Investments ......................................... 5,111,072 (1,100,982) (4,700,829) 251,144
Translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies 25,196,534 3,226,743 (1,890,113) (214,158)
Net Increase (Decrease) in Net Assets
Resulting from Operations $25,127,256 $ 4,339,229 $ 759,272 $(196,690)
</TABLE>
<TABLE>
<CAPTION>
Capital Government
Bond Value Securities Growth
Account Account Account Account
Net Investment Income
Income:
<S> <C> <C> <C> <C>
Dividends............................................ $ -- $ 3,458,733 $ -- $ 723,879
Withholding tax on foreign dividends................. -- -- -- --
Interest............................................. 4,548,698 230,333 4,232,763 65,183
Total Income 4,548,698 3,689,066 4,232,763 789,062
Expenses:
Management and investment advisory fees (Note 3)..... 278,120 917,965 298,004 968,421
Custodian fees....................................... 1,404 1,362 3,593 1,956
Directors' fees...................................... 3,223 3,260 3,157 3,260
Other................................................ 6,705 8,767 5,170 14,832
Total Expenses 289,452 931,354 309,924 988,469
Net Investment Income (Operating Loss) 4,259,246 2,757,712 3,922,839 (199,407)
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. (4,991,322) 13,074,267 (562,640) 35,098,130
Foreign currency transactions........................ -- -- -- --
Change in unrealized appreciation/depreciation of:
Investments ......................................... 1,635,931 (39,160,861) 633,036 (22,520,472)
Translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies (3,355,391) (26,086,594) 70,396 12,577,658
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 903,855 $(23,328,882) $3,993,235 $ 12,378,251
</TABLE>
<TABLE>
<CAPTION>
High
Yield International
Account Account
Net Investment Income
Income:
<S> <C> <C>
Dividends............................................ $ 152 $ 2,236,255
Withholding tax on foreign dividends................. -- (161,467)
Interest............................................. 631,033 332,102
Total Income 631,185 2,406,890
Expenses:
Management and investment advisory fees (Note 3)..... 39,385 851,454
Custodian fees....................................... 1,415 38,114
Directors' fees...................................... 3,223 3,267
Other................................................ 819 5,525
Total Expenses 44,842 898,360
Net Investment Income (Operating Loss) 586,343 1,508,530
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. (671,754) 8,323,104
Foreign currency transactions........................ -- (61,047)
Change in unrealized appreciation/depreciation of:
Investments ......................................... (135,739) (6,877,520)
Translation of assets and liabilities in
foreign currencies................................. -- 22,754
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies (807,493) 1,407,291
Net Increase (Decrease) in Net Assets
Resulting from Operations $ (221,150) $ 2,915,821
</TABLE>
<TABLE>
<CAPTION>
International LargeCap
SmallCap Growth MicroCap MidCap
Account Account Account Account
Net Investment Income
Income:
<S> <C> <C> <C> <C>
Dividends............................................ $ 274,907 $ 12,351 $ 52,795 $ 550,457
Withholding tax on foreign dividends................. (32,236) -- -- --
Interest............................................. 181,372 5,124 9,941 336,571
Total Income 424,043 17,475 62,736 887,028
Expenses:
Management and investment advisory fees (Note 3)..... 331,525 40,641 36,939 788,045
Custodian fees....................................... 12,764 1,638 5,244 2,492
Directors' fees...................................... 3,193 1,614 3,186 3,260
Other................................................ 1,632 708 883 16,269
Total Gross Expenses 349,114 44,601 46,252 810,066
Less: Management and investment
advisory fees waived................................. -- 1,476 6,821 --
Total Net Expenses 349,114 43,125 39,431 810,066
Net Investment Income (Operating Loss) 74,929 (25,650) 23,305 76,962
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 5,975,000 83,730 128,567 17,014,591
Foreign currency transactions........................ (19,524) -- -- --
Other investment companies........................... -- -- -- --
Change in unrealized appreciation/depreciation of:
Investments ......................................... (7,912,665) 452,524 664,472 (7,883,583)
Translation of assets and liabilities in
foreign currencies................................. 2,057 -- -- --
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies (1,955,132) 536,254 793,039 9,131,008
Net Increase (Decrease) in Net Assets
Resulting from Operations $(1,880,203) $510,604 $816,344 $ 9,207,970
</TABLE>
<TABLE>
<CAPTION>
MidCap MidCap Money Real
Growth Value Market Estate
Account Account Account Account
Net Investment Income
Income:
<S> <C> <C> <C> <C>
Dividends............................................ $ 93,736 $ 32,657 $ -- $ 346,541
Withholding tax on foreign dividends................. -- -- -- --
Interest............................................. 13,452 8,471 3,321,967 10,081
Total Income 107,188 41,128 3,321,967 356,622
Expenses:
Management and investment advisory fees (Note 3)..... 75,023 31,025 267,055 51,542
Custodian fees....................................... 7,379 2,759 4,951 1,009
Directors' fees...................................... 3,181 1,614 3,107 3,265
Other................................................ 1,076 710 3,011 910
Total Gross Expenses 86,659 36,108 278,124 56,726
Less: Management and investment
advisory fees waived................................. 6,055 788 -- --
Total Net Expenses 80,604 35,320 278,124 56,726
Net Investment Income (Operating Loss) 26,584 5,808 3,043,843 299,896
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 2,008,176 238,672 -- (66,890)
Foreign currency transactions........................ -- -- -- --
Other investment companies........................... -- -- -- 26,531
Change in unrealized appreciation/depreciation of:
Investments ......................................... (895,758) 201,908 -- 1,389,211
Translation of assets and liabilities in
foreign currencies................................. -- -- -- --
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies 1,112,418 440,580 -- 1,348,852
Net Increase (Decrease) in Net Assets
Resulting from Operations $1,139,002 $446,388 $3,043,843 $1,648,748
</TABLE>
<TABLE>
<CAPTION>
SmallCap
SmallCap Growth
Account Account
Net Investment Income
Income:
<S> <C> <C>
Dividends............................................ $ 132,674 $ 2,230
Withholding tax on foreign dividends................. -- --
Interest............................................. 44,265 121,288
Total Income 176,939 123,518
Expenses:
Management and investment advisory fees (Note 3)..... 133,646 316,158
Custodian fees....................................... 2,831 2,622
Directors' fees...................................... 3,186 3,228
Other................................................ 1,139 1,179
Total Gross Expenses 140,802 323,187
Less: Management and investment
advisory fees waived................................. -- --
Total Net Expenses 140,802 323,187
Net Investment Income (Operating Loss) 36,137 (199,669
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies
Net realized gain (loss) from:
Investment transactions.............................. 3,770,812 7,660,938
Foreign currency transactions........................ -- --
Other investment companies........................... -- --
Change in unrealized appreciation/depreciation of:
Investments ......................................... (983,108) (573,818)
Translation of assets and liabilities in
foreign currencies................................. -- --
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currencies 2,787,704 7,087,120
Net Increase (Decrease) in Net Assets
Resulting from Operations $2,823,841 $6,887,451
</TABLE>
<TABLE>
<CAPTION>
SmallCap Stock Index
Value 500 Utilities
Account Account Account
Net Investment Income
Income:
<S> <C> <C> <C>
Dividends............................................ $ 115,809 $ 293,024 $ 420,105
Interest............................................. 16,043 90,512 56,923
Total Income 131,852 383,536 477,028
Expenses:
Management and investment advisory fees (Note 3)..... 67,687 93,263 96,798
Custodian fees....................................... 10,108 12,883 1,233
Directors' fees...................................... 3,183 1,614 3,223
Other................................................ 940 1,693 1,180
Total Gross Expenses 81,918 109,453 102,434
Less: Management and investment
advisory fees waived................................. 10,461 2,121 --
Total Net Expenses 71,457 107,332 102,434
Net Investment Income 60,395 276,204 374,594
Net Realized and Unrealized Gain (Loss) on
Investments Net realized gain from:
Investment transactions.............................. 1,331,615 (68,260) 1,294,741
Futures Contracts (Note 7)........................... -- 130,026 --
Change in unrealized appreciation/depreciation of:
Investments ......................................... (799,100) (334,478) (1,326,145)
Futures Contracts (Note 7)........................... -- 875 --
Net Realized and Unrealized
Gain (Loss) on Investments 532,515 (271,837) (31,404)
Net Increase in Net Assets
Resulting from Operations $ 592,910 $ 4,367 $ 343,190
</TABLE>
See accompanying notes.
STATEMENTS OF CHANGES IN NET ASSETS
(anaudited)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
<TABLE>
<CAPTION>
Aggressive Growth Asset Allocation
Account Account
Six Months Year Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999
Operations
<S> <C> <C> <C> <C>
Net investment income (operating loss)................. $ (69,278) $ (224,300) $ 1,112,486 $ 2,149,639
Net realized gain (loss) from investment transactions.. 20,085,462 35,928,978 4,327,725 7,774,018
Change in unrealized appreciation/depreciation
of investments...................................... 5,111,072 65,213,176 (1,100,982) 5,375,693
Net Increase (Decrease) in Net Assets
Resulting from Operations 25,127,256 100,917,854 4,339,229 15,299,350
Dividends and Distributions to Shareholders
From net investment income............................. -- -- -- (2,154,921)
Excess dividends from net investment income........... -- -- -- --
From net realized gain on investments.................. (13,285,040) (23,403,393) (1,524,359) (6,653,505)
Excess distributions of net realized gain on
investments......................................... -- -- -- --
Tax return of capital distributions.................... -- -- -- --
Total Dividends and Distributions (13,285,040) (23,403,393) (1,524,359) (8,808,426)
Capital Share Transactions (Note 5)
Shares sold............................................ 37,867,574 70,412,199 9,837,086 8,283,088
Shares issued in reinvestment of dividends
and distributions................................... 13,285,040 23,403,393 1,364,888 7,743,895
Shares redeemed........................................ (3,738,019) (16,325,801) (10,958,387) (16,896,631)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 47,414,595 77,489,791 243,587 (869,648)
Total Increase (Decrease) 59,256,811 155,004,252 3,058,457 5,621,276
Net Assets
Beginning of period.................................... 379,062,318 224,058,066 89,710,561 84,089,285
End of period [including undistributed (overdistributed)
net investment income (operating loss) as set
forth below]........................................ $438,319,129 $379,062,318 $ 92,769,018 $ 89,710,561
Undistributed (Overdistributed) Net Investment
Income (Operating Loss)............................. $ (69,278) $ -- $ 1,112,486 $ --
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
(anaudited)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
<TABLE>
<CAPTION>
Balanced Blue Chip
Account Account
Six Months Year Six Months Period
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999(a)
Operations
<S> <C> <C> <C> <C>
Net investment income (operating loss)................. $ 2,649,385 $ 7,173,286 $ 17,468 $ 53,354
Net realized gain (loss) from investment transactions.. 2,810,716 6,137,003 (465,302) (31,747)
Change in unrealized appreciation/depreciation
of investments...................................... (4,700,829) (8,446,637) 251,144 278,570
Net Increase (Decrease) in Net Assets
Resulting from Operations 759,272 4,863,652 (196,690) 300,177
Dividends and Distributions to Shareholders
From net investment income............................. -- (7,245,852 -- (53,354)
Excess dividends from net investment income........... -- (10,394) -- --
From net realized gain on investments.................. -- (7,861,220) -- --
Excess distributions of net realized gain on
investments......................................... -- (243,460) -- --
Tax return of capital distributions.................... -- -- -- (492)
Total Dividends and Distributions -- (15,360,926) -- (53,846)
Capital Share Transactions (Note 5)
Shares sold............................................ 7,141,260 30,775,483 358,352 6,284,956
Shares issued in reinvestment of dividends
and distributions................................... -- 15,360,054 -- 10,146
Shares redeemed........................................ (36,780,297) (24,494,245) (91,046) (87,966)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions (29,639,037) 21,641,292 267,306 6,207,136
Total Increase (Decrease) (28,879,765) 11,144,018 70,616 6,453,467
Net Assets
Beginning of period.................................... 209,747,312 198,603,294 6,453,467 --
End of period [including undistributed (overdistributed)
net investment income (operating loss) as set
forth below]........................................ $180,867,547 $209,747,312 $6,524,083 $6,453,467
Undistributed (Overdistributed) Net Investment
Income (Operating Loss)............................. $ 2,638,175 $ (11,210) $ 17,468 $ --
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31, 1999.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Bond
Account
Six Months Year
Ended Ended
June 30, December 31,
2000 1999
Operations
<S> <C> <C>
Net investment income (operating loss)................. $ 4,259,246 $ 8,576,397
Net realized gain (loss) from investment transactions.. (4,991,322) (389,028)
Change in unrealized appreciation/depreciation
of investments...................................... 1,635,931 (11,581,812)
Net Increase (Decrease) in Net Assets
Resulting from Operations 903,855 (3,394,443)
Dividends and Distributions to Shareholders
From net investment income............................. -- (8,702,169)
Excess dividends from net investment income........... -- --
From net realized gain on investments.................. -- --
Excess distributions of net realized gain on
investments......................................... -- --
Tax return of capital distributions.................... -- --
Total Dividends and Distributions -- (8,702,169)
Capital Share Transactions (Note 5)
Shares sold............................................ 4,281,491 22,315,562
Shares issued in reinvestment of dividends
and distributions................................... -- 8,702,169
Shares redeemed........................................ (18,545,175) (15,827,234)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions (14,263,684) 15,190,497
Total Increase (Decrease) (13,359,829) 3,093,885
Net Assets
Beginning of period.................................... 125,066,660 121,972,775
End of period [including undistributed (overdistributed)
net investment income (operating loss) as set
forth below]........................................ $111,706,831 $125,066,660
Undistributed (Overdistributed) Net Investment
Income (Operating Loss)............................. $ 4,259,681 $ 435
</TABLE>
<TABLE>
<CAPTION>
Capital Value Government Securities
Account Account
Six Months Year Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999
Operations
<S> <C> <C> <C> <C>
Net investment income (operating loss)................. $ 2,757,712 $ 8,240,632 $ 3,922,839 $ 8,781,791
Net realized gain (loss) from investment and
foreign currency transactions....................... 13,074,267 28,203,265 (562,640) 56,873
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... (39,160,861) (53,910,054) 633,036 (9,257,079)
Net Increase (Decrease) in Net Assets
Resulting from Operations (23,328,882) (17,466,157) 3,993,235 (418,415)
Dividends and Distributions to Shareholders
From net investment income............................. -- (8,380,269) -- (8,912,447)
Excess distribution of net investment income........... -- -- -- --
From net realized gain on investments and foreign
currency transactions............................... -- (32,879,252) -- --
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) -- (8,912,447)
Capital Share Transactions (Note 5)
Shares sold............................................ 11,556,821 41,555,654 2,656,088 24,153,463
Shares issued in reinvestment of dividends
and distributions................................... -- 50,392,205 -- 8,912,447
Shares redeemed........................................ (68,608,170) (41,724,892) (25,020,961) (27,264,804)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions (57,051,349) 50,222,967 (22,364,873) 5,801,106
Total Increase (Decrease) (80,380,231) (17,797,027) (18,371,638) (3,529,756)
Net Assets
Beginning of period.................................... 367,926,766 50,222,967 137,787,470 141,317,226
End of period [including undistributed (overdistributed)
net investment income (operating loss) as set
forth below]........................................ $287,546,535 $367,926,766 $119,415,832 $137,787,470
Undistributed (Overdistributed) Net Investment
Income (Operating Loss)............................. $ 2,757,712 $ -- $ 3,936,538 $13,699
</TABLE>
<TABLE>
<CAPTION>
Growth High Yield
Account Account
Six Months Year Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999
Operations
<S> <C> <C> <C> <C>
Net investment income (operating loss)................. $ (199,407) $ 2,040,052 $ 586,343 $ 1,197,302
Net realized gain (loss) from investment and
foreign currency transactions....................... 35,098,130 37,694,571 (671,754) (593,513)
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... (22,520,472) 7,380,568 (135,739) (350,732)
Net Increase (Decrease) in Net Assets
Resulting from Operations 12,378,251 47,115,191 (221,150) 253,057
Dividends and Distributions to Shareholders
From net investment income............................. -- (2,019,736) -- (1,222,012)
Excess distribution of net investment income........... -- -- -- (48,020)
From net realized gain on investments and foreign
currency transactions............................... (37,693,519) (1,365,000) -- --
Excess distribution of net realized gains on
investments and foreign currency transactions....... -- -- -- --
Tax return of capital distributions.................... -- -- -- --
Total Dividends and Distributions (37,693,519) (3,384,736) -- (1,270,032)
Capital Share Transactions (Note 5)
Shares sold............................................ 16,709,771 55,919,566 45,830 375,171
Shares issued in reinvestment of dividends
and distributions................................... 37,484,389 3,365,051 -- 1,270,031
Shares redeemed........................................ (29,381,172) (16,961,092) (91,820) (993,134)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 24,812,988 42,323,525 (45,990) 652,068
Total Increase (Decrease) (502,280) 86,053,980 (267,140) (364,907)
Net Assets
Beginning of period.................................... 345,881,593 259,827,613 13,677,725 14,042,632
End of period [including undistributed (overdistributed)
net investment income (operating loss) as set
forth below]........................................ $345,379,313 $345,881,593 $13,410,585 $13,677,725
Undistributed (Overdistributed) Net Investment
Income (Operating Loss)............................. $ (179,091) $ 20,316 $ 502,290 $ (84,053)
</TABLE>
<TABLE>
<CAPTION>
International
Account
Ended Ended
June 30, December 31,
2000 1999
Operations
<S> <C> <C>
Net investment income (operating loss)................. $ 1,508,530 $ 5,217,374
Net realized gain (loss) from investment and
foreign currency transactions....................... 8,262,057 12,581,615
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... (6,854,766) 22,634,156
Net Increase (Decrease) in Net Assets
Resulting from Operations 2,915,821 40,433,145
Dividends and Distributions to Shareholders
From net investment income............................. (324,053) (5,097,167
Excess distribution of net investment income........... -- --
From net realized gain on investments and foreign
currency transactions............................... -- (15,868,120
Excess distribution of net realized gains on
investments and foreign currency transactions....... -- (2,783,514
Tax return of capital distributions.................... -- --
Total Dividends and Distributions (324,053) (23,748,801
Capital Share Transactions (Note 5)
Shares sold............................................ 18,070,161 17,339,054
Shares issued in reinvestment of dividends
and distributions................................... 321,873 23,563,847
Shares redeemed........................................ (8,140,041) (13,939,684)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 10,251,993 26,963,217
Total Increase (Decrease) 12,843,761 43,647,561
Net Assets
Beginning of period.................................... 197,235,476 153,587,915
End of period [including undistributed (overdistributed)
net investment income (operating loss) as set
forth below]........................................ $210,079,237 $197,235,476
Undistributed (Overdistributed) Net Investment
Income (Operating Loss)............................. $ 1,054,644 $ (68,786)
</TABLE>
<TABLE>
<CAPTION>
International SmallCap LargeCap Growth
Account Account
Six Months Year Six Months Period
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999(a)
Operations
<S> <C> <C> <C> <C>
Net investment income (operating loss)................. $ 74,929 $ (58,771) $ (25,650) $ (15,019)
Net realized gain (loss) from investment and
foreign currency transactions....................... 5,955,476 4,970,503 83,730 (212,486)
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... (7,910,608) 11,523,072 452,524 1,923,860
Net Increase (Decrease) in Net Assets
Resulting from Operations (1,880,203) 16,434,804 510,604 1,696,355
Dividends and Distributions to Shareholders
From net investment income............................. -- -- -- --
From net realized gain on investments and foreign
currency transactions............................... (291,821) (1,673,285) -- --
Total Dividends and Distributions (291,821) (1,673,285) -- --
Capital Share Transactions (Note 5)
Shares sold............................................ 31,864,922 12,265,656 473,955 5,359,054
Shares issued in reinvestment of dividends
and distributions................................... 185,184 940,385 -- --
Shares redeemed........................................ (11,141,622) (1,002,938) (100,085) (10,778)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 20,908,484 12,203,103 373,870 5,348,276
Total Increase 18,736,460 26,964,622 884,474 7,044,631
Net Assets
Beginning of period.................................... 40,039,774 13,075,152 7,044,631 --
End of period [including undistributed net investment
income (operating loss) as set forth below]......... $ 58,776,234 $40,039,774 $7,929,105 $7,044,631
Undistributed Net Investment Income
(Operating Loss).................................... $ 55,405 $ -- $ (25,650) $ --
<FN>
(a) Period from April 15, 1999 (date operations commenced) through December 31, 1999.
</FN>
</TABLE>
<TABLE>
<CAPTION>
MicroCap MidCap
Account Account
Six Months Year Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999
Operations
<S> <C> <C> <C> <C>
Net investment income (operating loss)................. $ 23,305 $ 12,885 $ 76,962 $ 793,259
Net realized gain (loss) from investment and
foreign currency transactions....................... 128,567 (531,506) 17,014,591 19,365,345
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... 664,472 432,502 (7,883,583) 9,954,987
Net Increase (Decrease) in Net Assets
Resulting from Operations 816,344 (86,119) 9,207,970 30,113,591
Dividends and Distributions to Shareholders
From net investment income............................. -- (9,327) -- (800,858)
From net realized gain on investments and foreign
currency transactions............................... -- -- (12,871,488) (12,036,219)
Total Dividends and Distributions -- (9,327) (12,871,488) (12,837,077)
Capital Share Transactions (Note 5)
Shares sold............................................ 1,836,568 1,463,056 10,556,619 14,176,495
Shares issued in reinvestment of dividends
and distributions................................... -- 3,428 12,802,182 12,769,908
Shares redeemed........................................ (534,115) (336,969) (18,249,101) (41,343,300)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 1,302,453 1,129,515 5,109,700 (14,396,897)
Total Increase 2,118,797 1,034,069 1,446,182 2,879,617
Net Assets
Beginning of period.................................... 6,417,668 5,383,599 262,349,825 259,470,208
End of period [including undistributed net investment
income (operating loss) as set forth below]......... $8,536,465 $6,417,668 $263,796,007 $262,349,825
Undistributed Net Investment Income
(Operating Loss).................................... $ 26,863 $ 3,558 $ 76,962 $ --
</TABLE>
<TABLE>
<CAPTION>
MidCap Growth
Account
Six Months Year
Ended Ended
June 30, December 31,
2000 1999
Operations
<S> <C> <C>
Net investment income (operating loss)................. $ 26,584 $ 27,776
Net realized gain (loss) from investment and
foreign currency transactions....................... 2,008,176 731,050
Change in unrealized appreciation/depreciation of
investments and translation of assets and
liabilities in foreign currencies................... (895,758) 597,863
Net Increase (Decrease) in Net Assets
Resulting from Operations 1,139,002 1,356,689
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............................................ 4,537,605 5,139,121
Shares issued in reinvestment of dividends
and distributions................................... -- 15,052
Shares redeemed........................................ (576,939) (755,526)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 3,960,666 4,398,647
Total Increase 5,099,668 5,730,784
Net Assets
Beginning of period.................................... 14,264,295 8,533,511
End of period [including undistributed net investment
income (operating loss) as set forth below]......... $19,363,963 $14,264,295
Undistributed Net Investment Income
(Operating Loss)..................................... $ 29,808 $ 3,224
</TABLE>
<TABLE>
<CAPTION>
MidCap Value Money Market
Account Account
Six Months Period Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999
Operations
<S> <C> <C> <C> <C>
Net investment income.................................. $ 5,808 $ 9,504 $ 3,043,843 $ 4,231,004
Net realized gain (loss) from investment transactions.. 238,672 502,244 -- --
Change in unrealized appreciation/depreciation
of investments ..................................... 201,908 187,469 -- --
Net Increase (Decrease) in Net Assets
Resulting from Operations 446,388 699,217 3,043,843 4,231,004
Dividends and Distributions to Shareholders
From net investment income............................. -- (9,504) (3,043,843) (4,231,004)
Excess distribution of net investment income........... -- (200) -- --
From net realized gain on investments.................. (385,612) (116,388) -- --
Total Dividends and Distributions (385,612) (126,092) (3,043,843) (4,231,004)
Capital Share Transactions (Note 5)
Shares sold............................................ 81,420 5,179,418 68,251,357 119,049,917
Shares issued in reinvestment of dividends
and distributions................................... 385,612 3,943 3,043,843 4,228,174
Shares redeemed........................................ (3,534) (844) (87,915,332) (85,617,203)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 463,498 5,182,517 (16,620,132) 37,660,888
Total Increase (Decrease) 524,274 5,755,642 (16,620,132) 37,660,888
Net Assets
Beginning of period.................................... 5,755,642 -- 120,923,710 83,262,822
End of period (including undistributed net
investment income as set forth below)............... $6,279,916 $5,755,642 $104,303,578 $120,923,710
Undistributed Net Investment Income.................... $ 5,808 $ -- $ -- $ --
<FN>
(a) Period from April 22, 1999 (date operations commenced) through December 31, 1999.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Real Estate SmallCap
Account Account
Six Months Year Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999
Operations
<S> <C> <C> <C> <C>
Net investment income.................................. $ 299,896 $ 545,284 $ 36,137 $ 8,236
Net realized gain (loss) from investment transactions.. (40,359) (1,459,133) 3,770,812 4,522,953
Change in unrealized appreciation/depreciation
of investments ..................................... 1,389,211 390,875 (983,108) 2,652,903
Net Increase (Decrease) in Net Assets
Resulting from Operations 1,648,748 (522,974) 2,823,841 7,184,092
Dividends and Distributions to Shareholders
From net investment income............................. (10,824) (571,628) -- (8,617)
Excess distribution of net investment income........... -- -- -- --
From net realized gain on investments.................. -- -- (2,208,308) (2,243,300)
Total Dividends and Distributions (10,824) (571,628) (2,208,308) (2,251,917)
Capital Share Transactions (Note 5)
Shares sold............................................ 1,619,070 1,094,954 9,884,726 9,247,605
Shares issued in reinvestment of dividends
and distributions................................... 10,824 120,628 1,356,208 1,257,617
Shares redeemed........................................ (645,710) (469,452) (2,085,876) (1,422,059)
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 984,184 746,130 9,155,058 9,083,163
Total Increase (Decrease) 2,622,108 (348,472) 9,770,591 14,015,338
Net Assets
Beginning of period.................................... 10,560,284 10,908,756 26,109,643 12,094,305
End of period (including undistributed net
investment income as set forth below)............... $13,182,392 $10,560,284 $35,880,234 $26,109,643
Undistributed Net Investment Income.................... $ 310,872 $ 21,800 $ 36,228 $ 91
</TABLE>
<TABLE>
<CAPTION>
SmallCap Growth SmallCap Value
Account Account
Six Months Year Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999
Operations
<S> <C> <C> <C> <C>
Net investment income (operating loss)................. $ (199,669) $ (94,372) $ 60,395 $ 70,538
Net realized gain from investment transactions......... 7,660,938 2,142,989 1,331,615 490,603
Change in unrealized appreciation/depreciation of
investments......................................... (573,818) 12,830,588 (799,100) 1,306,560
Net Increase in Net Assets
Resulting from Operations 6,887,451 14,879,205 592,910 1,867,701
Dividends and Distributions to Shareholders
From net investment income............................. -- -- -- (70,821)
From net realized gain on investments.................. (842,051) (377,219) -- --
Total Dividends and Distributions (842,051) (377,219) -- (70,821)
Capital Share Transactions (Note 5)
Shares sold............................................ 38,519,432 17,228,800 2,035,822 2,845,395
Shares issued in reinvestment of dividends
and distributions................................... 668,051 279,819 -- 38,121
Shares redeemed........................................ (1,371,974) (798,052) (342,349) (495,325)
Net Increase in Net Assets from
Capital Share Transactions 37,815,509 16,710,567 1,693,473 2,388,191
Total Increase 43,860,909 31,212,553 2,286,383 4,185,071
Net Assets
Beginning of period.................................... 39,675,181 8,462,628 11,080,457 6,895,386
End of period [including undistributed net investment
income (operating loss) as set forth below]......... $83,536,090 $39,675,181 $13,366,840 $11,080,457
Undistributed Net Investment Income
(Operating Loss).................................... $ (199,669) $ -- $ 61,978 $ 1,583
</TABLE>
<TABLE>
<CAPTION>
Stock Index 500 Utilities
Account Account
Six Months Period Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999
Operations
<S> <C> <C> <C> <C>
Net investment income (operating loss)................. $ 276,204 $ 252,298 $ 374,594 $ 632,538
Net realized gain from investment transactions......... 61,766 381,179 1,294,741 539,988
Change in unrealized appreciation/depreciation of
investments......................................... (333,603) 2,962,897 (1,326,145) (571,384)
Net Increase in Net Assets
Resulting from Operations 4,367 3,596,374 343,190 601,142
Dividends and Distributions to Shareholders
From net investment income............................. -- (251,839) -- (631,032)
From net realized gain on investments.................. (280,368) (325,933) (386,992) (137,455)
Total Dividends and Distributions (280,368) (577,772) (386,992) (768,487)
Capital Share Transactions (Note 5)
Shares sold............................................ 16,406,592 43,343,872 4,364,201 12,923,415
Shares issued in reinvestment of dividends
and distributions................................... 221,868 431,172 251,892 488,387
Shares redeemed........................................ (1,285,574) (705,324) (1,752,506) (858,385)
Net Increase in Net Assets from
Capital Share Transactions 15,342,886 43,069,720 2,863,587 12,553,417
Total Increase 15,066,885 46,088,322 2,819,785 12,386,072
Net Assets
Beginning of period.................................... 46,088,322 -- 30,684,146 18,298,074
End of period [including undistributed net investment
income (operating loss) as set forth below]......... $61,155,207 $46,088,322 $33,503,931 $30,684,146
Undistributed Net Investment Income
(Operating Loss).................................... $ 276,663 $ 459 $ 376,100 $ 1,506
<FN>
(a) Period from April 22, 1999 (date operations commenced) through December 31, 1999.
</FN>
</TABLE>
See accompanying notes.
NOTES TO FINANCIAL STATEMENTS
(unaudited)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
<TABLE>
<CAPTION>
<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
December 31, 1999
Aggressive Growth Account $237,223
Asset Allocation Account 52,169
Growth Account 46,545
High Yield Account 159,175
International Account 54,062
International SmallCap Account 153,217
MidCap Account 63,183
SmallCap Growth Account 94,372
Dividends and distributions which exceed net investment income and net realized
capital gains for financial reporting purposes, but not for tax purposes, are
reported as dividends in excess of net investment income or distributions in
excess of net realized capital gains. To the extent distributions exceed current
and accumulated earnings and profits for federal income tax purposes, they are
reported as tax return of capital distributions.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Note 2 -- Federal Income Taxes
No provision for federal income taxes is considered necessary because each
account is qualified as a "regulated investment company" under the Internal
Revenue Code and intends to distribute each year substantially all of its net
investment income and realized capital gains to shareholders. The cost of
investments for federal income tax reporting purposes approximates that used for
financial reporting purposes.
Note 3 -- Management Agreement and Transactions With Affiliates
The Fund has agreed to pay investment advisory and management fees to Principal
Management Corporation (wholly owned by Princor Financial Services Corporation,
a subsidiary of Principal Financial Services, Inc.) computed at an annual
percentage rate of each account's average daily net assets. The annual rate used
in this calculation for the Accounts is as follows:
<TABLE>
<CAPTION>
Net Assets Value of Accounts
(in millions)
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
Government Securities Account .50 .45 .40 .35 .30
High Yield Account .60 .55 .50 .45 .40
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>
<CAPTION>
Net Assets Value of Accounts
(in millions)
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%
Capital Value Account* .60 .55 .50 .45 .40
Growth Account* .60 .55 .50 .45 .40
International Account* .85 .80 .75 .70 .65
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.
The Manager voluntarily waives a portion of its fee for certain Accounts. 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 amounts waived and the operating expense limits, which were maintained at or
below that shown, are as follows:
<TABLE>
Amount Waived
<CAPTION>
Period Ended Expense
June 30, 2000 Limit
<S> <C> <C>
LargeCap Growth Account $ 1,476 1.20%
MicroCap Account 6,821 1.06
MidCap Growth Account 6,055 .96
MidCap Value Account 788 1.20
SmallCap Growth Account -- 1.06
SmallCap Value Account 10,461 1.16
Stock Index 500 Account 2,121 .40
</TABLE>
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>
Period Ended Periods Ended
June 30, 2000 December 31, 1999
<S> <C> <C>
Aggressive Growth Account $ 48,260 $79,526
Asset Allocation Account 3,011 16,160
Balanced Account 10,720 17,821
Blue Chip Account 1,380 5,010
Capital Value Account 85,687 61,919
Growth Account 12,390 40,281
International Account 108,393 95,413
International SmallCap Account 17,639 38,098
LargeCap Growth Account 56 701
MicroCap Account 2,028 3,481
MidCap Account 29,130 36,480
MidCap Growth Account 1,101 2,732
MidCap Value Account 7,645 12,572
Real Estate Account 2,182 9,240
SmallCap Account 2,992 3,430
SmallCap Growth Account 1,347 702
SmallCap Value Account 13,969 1,307
Stock Index 500 Account -- 23
Utilities Account 9,178 3,135
</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 4 -- Investment Transactions
For the period ended June 30, 2000, 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 $179,598,124 $149,571,858 LargeCap Growth Account $ 922,595 $ 594,688
Asset Allocation Account 26,178,506 27,736,523 MicroCap Account 4,007,992 2,551,056
Balanced Account 83,633,803 108,772,507 MidCap Account 163,775,019 174,029,955
Blue Chip Account 3,612,623 3,350,128 MidCap Growth Account 12,685,443 8,666,974
Bond Account 26,943,249 37,181,796 MidCap Value Account 5,589,740 5,224,888
Capital Value Account 209,257,170 260,791,013 Real Estate Account 5,649,743 5,006,979
Government Securities Account 1,005,937 16,366,067 SmallCap Account 26,996,035 19,516,251
Growth Account 238,565,131 252,404,270 SmallCap Growth Account 54,005,050 20,997,883
High Yield Account 8,210,643 7,809,477 SmallCap Value Account 13,546,619 11,545,052
International Account 95,551,321 90,752,038 Stock Index 500 Account 22,360,848 644,110
International SmallCap Account 101,102,373 85,337,219 Utilities Account 28,082,621 25,229,723
</TABLE>
At June 30, 2000, 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 $121,520,839 $(10,157,640) $111,363,199
Asset Allocation Account 16,839,566 (3,665,328) 13,174,238
Balanced Account 19,533,178 (12,136,177) 7,397,001
Blue Chip Account 796,379 (266,665) 529,714
Bond Account 490,286 (6,092,378) (5,602,092)
Capital Value Account 27,104,567 (27,951,508) (846,941)
Government Securities Account 409,016 (3,277,044) (2,868,028)
Growth Account 72,202,433 (12,789,134) 59,413,299
High Yield Account 70,754 (1,360,036) (1,289,282)
International Account 43,210,266 (11,382,296) 31,827,970
International SmallCap Account 6,179,909 (3,311,533) 2,868,376
LargeCap Growth Account 2,591,801 (215,417) 2,376,384
MicroCap Account 1,325,819 (968,508) 357,311
MidCap Account 65,972,483 (20,268,451) 45,704,032
MidCap Growth Account 2,509,838 (1,938,515) 571,323
MidCap Value Account 701,017 (311,640) 389,377
Real Estate Account 1,149,476 (227,240) 922,236
SmallCap Account 5,246,796 (5,170,747) 76,049
SmallCap Growth Account 20,434,298 (6,866,251) 13,568,047
SmallCap Value Account 1,383,974 (1,189,680) 194,294
Stock Index 500 Account 8,745,783 (6,116,489) 2,629,294
Utilities Account 3,252,556 (3,571,909) (319,353)
</TABLE>
The Accounts may trade portfolio securities on a "to-be-announced" (TBA) basis.
In a TBA transaction, the account commits to purchase or sell securities for
which all specific information is not known at the time of the trade. Securities
purchased on a TBA basis are not settled until they are delivered to the
account, normally 15 to 30 days later. These transactions are subject to market
fluctuations and their current value is determined in the same manner as for
other portfolio securities. As of June 30, 2000, Government Securities Account
had a TBA purchase commitment involving a security with a face amount of
$1,000,000, cost of $1,005,937 and market value of $1,004,458. The account has
set aside investment securities and other assets in excess of the commitment to
serve as collateral.
At June 30, 2000, the Accounts held the following securities which were
purchased in private placement transactions and may require registration, or an
exemption therefrom, in order to effect a sale in the ordinary course of
business.
<TABLE>
<CAPTION>
Value at Value as a
Date of June 30, Percentage
Security Description Acquisition Cost 2000 of Net Assets
<S> <C> <C> <C> <C>
Asset Allocation Aesop Funding II LLC
Account Collateralized Mortgage Obligation 5/5/98 $ 335,339 $ 332,967 0.36%
DSM NV Notes 5/6/99 198,894 192,680 0.21
Israel Electric Corp. Senior Notes 12/11/96 249,525 239,441 0.26
Liberty Mutual Surplus Notes 4/29/98 275,913 245,786 0.26
Prudential Insurance Co. Senior Notes 7/16/98 298,674 277,251 0.30
Vodafone Airtouch PLC
Unsubordinated Notes 2/7/00 299,526 300,415 0.32
1,588,540 1.71
Bond Account AES Ironwood LLC Senior Secured Bonds 6/18/99 3,000,000 2,924,970 2.62
Orix Credit Alliance Short-Term Notes 2/26/99 3,000,000 2,984,610 2.67
Osprey Trust/Osprey I, Inc.
Senior Secured Notes 9/16/99 3,500,000 3,511,330 3.14
Southern Energy, Inc. Senior Notes 7/21/99 1,999,260 1,828,714 1.64
Vodafone Airtouch PLC
Unsubordinated Notes 2/7/00 1,987,620 1,982,904 1.78
13,232,528 11.85
High Yield Account CE Casecnan Water & Energy Co., Inc.
Senior Notes 1/21/00 242,500 232,500 1.73
5/11/00 229,375 232,500 1.73
Covad Communications Group, Inc.
Senior Notes 1/21/00 250,000 195,000 1.45
Flextronics International Ltd.
Senior Subordinated Notes 6/26/00 99,220 100,750 0.75
Level 3 Communications, Inc.
Senior Discount Notes 2/24/00 133,270 136,875 1.02
4/5/00 50,375 54,750 0.41
NEXTLINK Communications, Inc. Senior Notes 11/12/99 300,000 292,500 2.18
Station Casinos, Inc. Senior Subordinated Notes 6/29/00 298,818 300,750 2.24
Tekni-Plex, Inc. Senior Subordinated Notes 6/15/00 295,890 300,000 2.24
Tenet Healthcare Corp. Senior Notes 6/13/00 250,000 251,875 1.88
Winstar Communications, Inc. Senior Notes 3/27/00 500,000 466,250 3.48
York Power Funding Ltd. Senior Secured Bonds 7/31/98 100,000 98,000 0.73
2,661,750 19.85
Utilities Account Liberty Media Group Convertible Bond 11/18/99 329,040 414,720 1.24
</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:
Note 5 -- Capital Share Transactions
<TABLE>
<CAPTION>
Aggressive Asset Allocation Balanced Blue Chip
Growth Account Account Account Account
<S> <C> <C> <C> <C>
Period Ended June 30, 2000:
Shares sold................................... 1,591,243 739,880 476,589 36,507
Shares issued in reinvestment of
dividends and distributions.................. 579,374 105,970 -- --
Shares redeemed............................... (158,038) (821,862) (2,437,442) (9,239)
Net Increase (Decrease) 2,012,579 23,988 (1,960,853) 27,268
Periods Ended December 31, 1999:
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
</TABLE>
<TABLE>
<CAPTION>
Bond Capital Government Growth
Account Value Account Securities Account Account
<S> <C> <C> <C> <C>
Period Ended June 30, 2000:
Shares sold................................... 396,113 394,297 255,771 786,139
Shares issued in reinvestment of
dividends and distributions.................. -- -- -- 1,842,890
Shares redeemed............................... (1,710,275) (2,333,243) (2,433,301) (1,391,952)
Net Increase (Decrease) (1,314,162) (1,938,946) (2,177,530) 1,237,077
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
</TABLE>
<TABLE>
<CAPTION>
High Yield International International LargeCap
Account Account SmallCap Account Growth Account
<S> <C> <C> <C> <C>
Period Ended June 30, 2000:
Shares sold................................... 6,301 1,132,169 1,727,873 33,711
Shares issued in reinvestment of
dividends and distributions.................. -- 20,713 10,351 --
Shares redeemed............................... (12,619) (508,389) (597,264) (7,019)
Net Increase (Decrease) (6,318) 644,493 1,140,960 26,692
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
</TABLE>
<TABLE>
<CAPTION>
MicroCap MidCap MidCap MidCap Value
Account Account Growth Account Account
<S> <C> <C> <C> <C>
Period Ended June 30, 2000:
Shares sold................................... 216,221 291,041 409,663 7,135
Shares issued in reinvestment of
dividends and distributions................. -- 359,612 -- 38,217
Shares redeemed............................... (61,205) (496,895) (51,970) (325)
Net Increase 155,016 153,758 357,693 45,027
Periods Ended December 31, 1999:
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
</TABLE>
<TABLE>
<CAPTION>
Money Real Estate SmallCap SmallCap
Market Account Account Account Growth Account
<S> <C> <C> <C> <C>
Period Ended June 30, 2000:
Shares sold................................... 68,250,317 186,832 909,722 1,778,616
Shares issued in reinvestment of
dividends and distributions.................. 3,044,883 1,304 131,416 33,774
Shares redeemed............................... (87,915,332) (73,837) (185,162) (69,350)
Net Increase(Decrease) (16,620,132) 114,299 855,976 1,743,040
Year Ended December 31, 1999:
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
</TABLE>
<TABLE>
<CAPTION>
SmallCap Stock Index Utilities
Value Account 500 Account Account
Period Ended June 30, 2000:
<S> <C> <C> <C>
Shares sold................................... 198,687 1,578,832 396,281
Shares issued in reinvestment of
dividends and distributions.................. -- 21,688 22,673
Shares redeemed............................... (32,919) (121,064) (157,105)
Net Increase 165,768 1,479,456 261,849
Periods Ended December 31, 1999:
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
</TABLE>
Note 6 -- Line of Credit
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 June 30, 2000, 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 as a hedge against changes in market conditions. Initial margin
deposits are made by cash deposits or segregation of specific securities as may
be required by the exchange on which the transaction was conducted. Pursuant to
the contracts, an account agrees to receive from or pay to the broker, an amount
of cash equal to the daily fluctuation in the value of the contract. Such
receipts or payments are known as "variation margin" and are recorded by the
account as a variation margin receivable or payable on futures contracts. During
the period the futures contracts are open, daily changes in the value of the
contracts are recognized as unrealized gains or losses. These unrealized gains
or losses are included in the net unrealized appreciation (depreciation) of
investments on the 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.
June 30, 2000
SCHEDULES OF INVESTMENTS
(unaudited)
AGGRESSIVE GROWTH ACCOUNT
Shares
Held Value
Common Stocks (96.82%)
Advertising (0.49%)
Omnicom Group, Inc. 23,900 $ 2,128,594
Aircraft & Parts (5.93%)
General Dynamics Corp. 102,200 5,339,950
Textron, Inc. 63,300 3,437,981
United Technologies Corp. 292,000 17,191,500
25,969,431
Bakery Products (0.27%)
Keebler Foods Co. 31,500 1,169,438
Beverages (1.97%)
Anheuser-Busch Cos., Inc. 57,800 4,316,937
PepsiCo, Inc. 97,500 4,332,656
8,649,593
Cable & Other Pay TV Services (1.12%)
Comcast Corp. 78,600(a) 3,183,300
Comcast Corp., Class A 18,700(a) 726,963
TV Guide, Inc., Class A 29,400(a) 1,006,950
4,917,213
Combination Utility Services (0.23%)
Montana Power Co. 28,400 1,002,875
Commercial Banks (2.29%)
Bank of New York Co., Inc. 151,700 7,054,050
FleetBoston Financial Corp. 88,100 2,995,400
10,049,450
Communications Equipment (5.86%)
Ciena Corp. 16,100(a) 2,683,669
Juniper Networks, Inc. 16,600(a) 2,416,337
Lucent Technologies, Inc. 74,400 4,408,200
Motorola, Inc. 195,300 5,675,906
Nortel Networks Corp. 154,300 10,530,975
25,715,087
Communications Services, NEC (1.10%)
Crown Castle International Corp. 73,700(a) 2,690,050
Nextel Communications, Inc. 25,600(a) 1,566,400
Spectrasite Holdings, Inc. 20,000(a) 567,500
4,823,950
Computer & Data Processing
Services (6.89%)
Genuity, Inc. 45,000(a) 412,031
Inktomi Corp. 11,900(a) 1,407,175
Microsoft Corp. 153,700(a) 12,296,000
Oracle Systems Corp. 93,400(a) 7,851,438
Sun Microsystems, Inc. 66,100(a) 6,010,969
Verisign, Inc. 3,600(a) 635,400
Yahoo!, Inc. 12,800(a) 1,585,600
30,198,613
Computer & Office Equipment (6.77%)
Accelerated Networks, Inc. 1,600(a) 67,500
Cisco Systems, Inc. 296,100(a) 18,820,856
EMC Corp. 37,200(a) 2,862,075
Hewlett-Packard Co. 22,500 2,809,687
International Business Machines Corp. 36,300 3,977,119
Seagate Technology, Inc. 20,700(a) 1,138,500
29,675,737
Consumer Products (0.78%)
Philip Morris Cos., Inc. 129,500 3,439,844
Department Stores (1.28%)
Wal-Mart Stores, Inc. 97,900 5,641,488
Drugs (13.83%)
Abbott Laboratories 36,100 1,608,706
American Home Products Corp. 109,300 6,421,375
Amgen, Inc. 27,600(a) 1,938,900
Bristol-Myers Squibb Co. 54,400 3,168,800
Genentech, Inc. 3,900(a) 670,800
Johnson & Johnson 65,600 6,683,000
Lilly (Eli) & Co. 19,200 1,917,600
Medimmune, Inc. 17,800(a) 1,317,200
Merck & Co., Inc. 60,400 4,628,150
Pfizer, Inc. 518,575 24,891,600
Pharmacia Corp. 107,864 5,575,221
Schering-Plough Corp. 29,400 1,484,700
Tularik, Inc. 10,300(a) 303,850
60,609,902
Eating & Drinking Places (0.16%)
Brinker International, Inc. 24,500(a) 716,625
Electrical Industrial Apparatus (0.04%)
Capstone Turbine Corp. 4,600(a) 207,287
Electronic Components &
Accessories (9.13%)
Analog Devices, Inc. 11,400(a) 866,400
Broadcom Corp., Class A 10,700(a) 2,342,631
Infineon Technologies AG 20,300(a) 1,608,775
Intel Corp. 140,900 18,836,569
Intersil Holding Corp. 35,800(a) 1,935,438
JDS Uniphase Corp. 47,600(a) 5,706,050
Marvell Technology Group Ltd. 1,900(a) 108,300
Maxim Integrated Products, Inc. 78,700(a) 5,346,681
PMC Sierra, Inc. 4,700(a) 835,131
Stratos Lightwave, Inc. 7,400(a) 206,275
Texas Instruments, Inc. 115,200 7,912,800
39,999,000
Federal & Federally Sponsored
Credit (0.76%)
Federal National Mortgage Association 63,800 3,329,562
Fire, Marine & Casualty Insurance (1.07%)
American International Group, Inc. 39,900 4,688,250
Glass & Glassware, Pressed or
Blown (0.84%)
Corning, Inc. 13,700 3,697,288
Grain Mill Products (0.38%)
Quaker Oats Co. 22,400 1,682,800
Groceries & Related Products (0.66%)
Safeway, Inc. 64,500(a) 2,910,562
Hospitals (0.34%)
HCA - The Healthcare Corp. 49,200 $ 1,494,450
Household Appliances (4.45%)
General Electric Co. 368,300 19,519,900
Jewlery, Silverware & Plated
Ware (0.35%)
Tiffany & Co. 22,700 1,532,250
Lumber & Other Building
Materials (2.82%)
Home Depot, Inc. 248,100 12,389,494
Measuring & Controlling
Devices (1.69%)
Exfo Electro-Optical Engineering Inc. 5,900(a) 258,863
PE Corp. - PE Biosystems Goup 22,300 1,469,012
7,433,925
Miscellaneous Business Services (0.12%)
StorageNetworks, Inc. 5,900(a) 532,475
Miscellaneous Manufactures (6.02%)
Tyco International Ltd. 556,800 26,378,400
Motion Picture Production &
Services (4.23%)
AT&T Corp. - Liberty Media Group,
Class A 246,600(a) 5,980,050
Time Warner, Inc. 117,400 8,922,400
Viacom, Inc., Class B 53,673(a) 3,659,828
18,562,278
Motor Vehicles & Equipment (0.31%)
General Motors Corp., Class H 15,600(a) 1,368,900
Personal Credit Institutions (1.13%)
American Express Co. 95,000 4,951,875
Radio & Television Broadcasting (3.21%)
American Tower Corp., Class A 105,300(a) 4,389,694
AmFm, Inc. 58,700(a) 4,050,300
Clear Channel Communications, Inc. 75,300(a) 5,647,500
14,087,494
Real Estate Operators & Lessors (0.33%)
Pinnacle Holdings, Inc. 27,200(a) 1,468,800
Retail Stores, NEC (0.42%)
Costco Wholesale Corp. 56,400(a) 1,861,200
Savings Institutions (1.75%)
Citigroup, Inc. 127,100 7,657,775
Soap, Cleaners & Toilet Goods (0.54%)
Procter & Gamble Co. 41,700 2,387,325
Special Industry Machinery (2.31%)
Applied Materials, Inc. 95,300(a) 8,636,563
ASM Lithography Holdings NV 26,900(a) 1,186,962
9,823,525
Telephone Communication (4.15%)
AT&T Corp. 68,590 2,169,159
AT&T Wireless Group 35,700(a) 995,137
BellSouth Corp. 21,000 895,125
Global Crossing Ltd. 40,611(a) 1,068,582
GTE Corp. 100,900 6,281,025
NEXTLINK Communications 11,600(a) 440,075
Sprint Corp. 49,900 2,544,900
WorldCom, Inc. 82,800(a) 3,798,450
18,192,453
Women's Accessory & Specialty
Stores (0.43%)
Intimate Brands, Inc. 96,500 1,905,875
Women's Clothing Stores (0.37%)
Limited, Inc. 75,300 1,628,362
Total Portfolio Investments (96.82%) 424,399,345
Cash and receivables, net of liabilities (3.18%) 13,919,784
Total Net Assets (100.00%) $438,319,129
(a) Non-income producing security - No dividend paid during the past twelve
months.
ASSET ALLOCATION ACCOUNT
Shares
Held Value
Common Stocks (55.78%)
Advertising (0.31%)
Omnicom Group, Inc. 1,200 $ 106,875
R.H. Donnelley Corp. 9,120(a) 176,700
283,575
Air Transportation, Scheduled (0.47%)
British Airways PLC ADR 1,400 80,500
Continental Airlines, Inc. 4,200(a) 197,400
KLM Royal Dutch Air 5,955 158,179
436,079
Aircraft & Parts (1.94%)
General Dynamics Corp. 7,700 402,325
Textron, Inc. 3,100 168,368
United Technologies Corp. 20,800 1,224,600
1,795,293
Apparel, Piece Goods, & Notions (0.03%)
Kenneth Cole Productions 650(a) 26,000
Asphalt Paving & Roofing
Materials (0.00%)
Elcor Corp. 100 2,300
Bakery Products (0.06%)
Keebler Foods Co. 1,500 55,687
Beverages (0.56%)
Anheuser-Busch Cos., Inc. 2,800 209,125
Bass PLC ADR 88,928 103,230
PepsiCo, Inc. 4,700 208,856
521,211
Blast Furnace & Basic Steel
Products (0.05%)
Corus Group PLC 3,500(a) 50,312
Cable & Other Pay TV Services (0.27%)
Comcast Corp. 4,500(a) 182,250
TCI Satellite Entertainment, Inc. 2,200(a) 19,112
TV Guide, Inc., Class A 1,400(a) 47,950
249,312
Chemicals & Allied Products (1.05%)
Asahi Chemical Industry Co. ADR 4,100 290,639
Bayer AG Sponsored ADR 310,735 419,850
Mitsubishi Chemical Corp. 6,100 250,800
Nova Chemicals Corp. 696 14,964
976,253
Colleges & Universities (0.04%)
DeVry, Inc. 1,300(a) 34,369
Combination Utility Services (0.40%)
Montana Power Co. 1,500 52,969
NiSource, Inc. 17,300 322,212
375,181
Commercial Banks (3.96%)
ABN-AMRO Holdings ADR 721,870 537,182
Allied Irish Banks ADR 8,700 154,425
Banco Santander Central 23,400 242,775
Bank of New York Co., Inc. 12,600 585,900
Bank One Corp. 1,600 42,500
Barclays PLC ADR 15,571 557,100
Chase Manhattan Corp. 6,270 288,812
Commerz Bank ADR 3,600 128,719
FleetBoston Financial Corp. 15,090 513,060
HSBC Holdings PLC 3,600 208,575
J.P. Morgan & Co., Inc. 300 33,038
Mellon Financial Corp. 2,900 105,669
PNC Financial Corp. 2,100 98,437
Westpac Banking ADR 4,900 175,175
3,671,367
Commercial Printing (0.21%)
Dai Nippon Printing Co. 1,100 194,317
Commercial Sports (0.05%)
Championship Auto Racing 1,700(a) 43,350
Communications Equipment (6.26%)
Advanced Fibre Communication 900(a) 40,781
Alcatel ADR 7,917 526,480
Ancor Communications, Inc. 2,800(a) 100,144
Ciena Corp. 800(a) 133,350
CTC Communications Group 4,050(a) 145,800
ECI Telecommunications Ltd. ADR 1,700 60,775
Efficient Networks, Inc. 1,000(a) 73,562
Gilat Satellite Networks 400(a) 27,750
Harmonic, Inc. 3,300(a) 81,675
Harris Corp. 3,900 127,725
Juniper Networks, Inc. 800(a) 116,450
Koninklijke (Royal) Philips
Electronics NV 29,448 1,398,780
Lucent Technologies 3,600 213,300
Matsushita Electric ADR 800 205,600
Motorola, Inc. 9,600 279,000
Nortel Networks Corp. 25,056 1,710,072
Plantronics, Inc. 200(a) 23,100
Powerwave Technologies, Inc. 1,900(a) 3,600
Proxim, Inc. 900(a) 89,072
SBA Communications Corp. 4,900(a) 254,494
Sensormatic Electronics Corp. 2,400(a) 37,950
Sirius Satellite Radio, Inc. 200(a) 8,863
Terayon Communication Systems, Inc. 600(a) 38,541
Vertel Corp. 1,600(a) 28,000
5,804,864
Communications Services, NEC (0.49%)
ACTV, Inc. 500(a) 7,469
Crown Castle International Corp. 23,500(a) 127,750
L-3 Communications Holdings 1,000(a) 57,062
Microcell Telecommunications 700(a) 25,288
Nextel Communications, Inc. 1,200(a) 73,425
Spectrasite Holdings, Inc. 55,400(a) 153,225
XM Satellite Radio Holdings, Class A 300(a) 11,231
455,450
Computer & Data Processing Services (2.31%)
3COM Corp. 500(a) 28,812
Allaire Corp. 700(a) 25,725
Audiocodes Ltd. 400(a) 48,000
Cacheflow, Inc. 400(a) 24,625
Documentum, Inc. 200(a) 17,875
Espeed, Inc., Class A 100(a) 4,344
Genuity, Inc. 4,100(a) 37,541
Informatica Corp. 1,300(a) 106,519
Inktomi Corp. 600(a) 70,950
Mediaplex, Inc. 1,300(a) 25,106
Micromuse, Inc. 800(a) 132,388
Microsoft Corp. 7,500(a) 600,000
Netegrity, Inc. 500(a) 37,656
Oracle Systems Corp. 4,500(a) 378,281
PurchasePro.com, Inc. 900 36,900
Saga Systems, Inc. 10,400(a) 129,350
SmartServ Online, Inc. 100(a) 7,056
Sun Microsystems, Inc. 3,200(a) 291,000
Verisign, Inc. 200(a) 35,300
Virage, Inc. 500(a) 9,031
Voyager.Net, Inc. 3,000(a) 24,000
Yahoo, Inc. 600(a) 74,325
2,144,784
Computer & Office Equipment (2.17%)
Accelerated Networks, Inc. 100(a) 4,219
Accord Networks Ltd. 2,300(a) 21,275
Cirrus Logic, Inc. 1,200(a) 19,200
Cisco Systems, Inc. 14,400(a) 915,300
EMC Corp. 1,800(a) 138,487
Hewlett-Packard Co. 1,100 137,362
Hitachi Ltd. ADR 2,900 417,962
International Business Machines Corp. 1,800 197,213
Interlink Electronics, Inc. 500(a) 20,938
Precise Software Solution 100(a) 2,400
Sandisk Corp. 1,400(a) 85,663
Seagate Technology, Inc. 1,000(a) 55,000
2,015,019
Concrete Work (0.08%)
Pioneer International ADR 25,000 70,902
Concrete, Gypsum & Plaster Products (0.14%)
Italcementi S P A 13,520 127,657
Consumer Products (0.21%)
Philip Morris Cos., Inc. 7,350 195,234
Crude Petroleum & Natural Gas (0.06%)
USX-Marathon Group, Inc. 2,300 57,644
Department Stores (0.47%)
BJ's Wholesale Club, Inc. 1,700(a) 56,100
Marui Corp. 2,800 107,446
Wal-Mart Stores, Inc. 4,800 276,600
440,146
Drugs (4.59%)
Abbott Laboratories 1,800 80,212
American Home Products Corp. 7,700 452,375
Amgen, Inc. 1,300(a) 91,325
Bristol-Myers Squibb Co. 2,700 157,275
Corixa Corp. 700(a) 30,056
Genentech, Inc. 200(a) 34,400
Johnson & Johnson 3,200 326,000
Lilly (Eli) & Co. 900 89,887
Omnicom Group, Inc. 2,400 $ 240,000
Medimmune, Inc. 900(a) 66,600
Merck & Co. 2,900 222,213
Novartis AG Sponsored ADR 5,758 230,320
Novo Nordisk ADR 3,200 270,400
NPS Pharmaceuticals, Inc. 1,600(a) 42,800
Nycomed Amersham PLC ADR 8,569 419,881
Pfizer, Inc. 25,500 1,224,000
Pharmacia Corp. 5,232 270,429
Schering-Plough Corp. 1,400 70,700
Smithkline Beecham PLC 2,200 143,413
Tularik, Inc. 1,200(a) 35,400
4,257,686
Drugs, Proprietaries & Sundries (0.01%)
Priority Healthcare Corp. 100(a) 7,431
Eating & Drinking Places (0.15%)
Brinker International, Inc. 1,200(a) 35,100
P.F. Changs China Bistro, Inc. 1,400 44,7132
Papa John's International, Inc. 2,600(a) 63,700
143,512
Electric Services (0.46%)
Avista Corp. 600 10,462
Endesa SA ADR 5,600 109,200
EVN AG ADR 10,800 80,752
National Power ADR 3,422 87,261
New Century Energies, Inc. 2,400 72,000
Pinnacle West Capital Corp. 1,000 33,875
Shandong Huaneng Power Development
Ltd. ADR 8,000 33,500
427,050
Electrical Industrial Apparatus (0.01%)
Capstone Turbine Corp. 300(a) 13,519
Electronic Components & Accessories (3.38%)
Analog Devices, Inc. 600(a) 45,600
ASM International NV 1,900(a) 50,350
Bookham Technology PLC ADR 400(a) 23,700
Broadcom Corp., Class A 500(a) 109,469
DDI Corp. 800(a) 22,800
Hi / Fn, Inc. 400(a) 17,750
Infineon Technologies ADR 1,000(a) 79,250
Intel Corp. 6,900 922,444
Intersil Holding Corp. 1,700(a) 91,906
JDS Uniphase Corp. 2,300(a) 275,712
Kyocera Corp. ADR 3,000 515,437
Lattice Semiconductor Corp. 400(a) 27,650
Marvell Technology Group Ltd. 100(a) 5,700
Maxim Integrated Products, Inc. 3,900(a) 264,956
Micrel, Inc. 1,000(a) 43,438
PMC Sierra, Inc. 200(a) 35,538
Stratos Lightwave, Inc. 500(a) 13,938
Texas Instruments, Inc. 5,600 384,650
Transwitch Corp. 2,550(a) 196,828
3,127,116
Family Clothing Stores (0.35%)
TJX Cos., Inc. 17,500 328,125
Federal & Federally Sponsored Credit (0.43%)
Federal National Mortgage Association 7,600 396,625
Finance Services (0.53%)
Nomura Secs Co. Ltd. ADR 2,000 490,541
Fire, Marine & Casualty
Insurance (1.10%)
Allstate Corp. 12,300 273,675
American International Group, Inc. 2,000 235,000
Loews Corp. 2,900 174,000
St. Paul Cos. 1,900 64,837
Tokio Marine & Fire Insurance ADR 4,600 273,700
1,021,212
Footwear, Except Rubber (0.61%)
Olivetti & Co. ADR 153,968 562,322
Freight Transportation
Arrangement (0.14%)
C H Robinson Worldwide, Inc. 2,600 128,700
Furniture & Home Furnishings
Stores (0.06%)
Tuesday Morning Corp. 5,600(a) 58,800
General Industrial Machinery (0.36%)
Amergroup Ltd. 5,500 75,920
SKF AB ADR 15,370 255,527
331,447
Glass & Glassware, Pressed or
Blown (0.20%)
Corning, Inc. 700 188,912
Grain Mill Products (0.09%)
Quaker Oats Co. 1,100 82,637
Groceries & Related Products (0.15%)
Safeway, Inc. 3,100(a) 139,887
Health & Allied Services, NEC (0.07%)
Accredo Health, Inc. 1,850(a) 63,941
Hospitals (0.17%)
Community Health Systems, Inc. 2,700(a) 43,706
HCA - The Healthcare Corp 2,400 72,900
Triad Hospitals, Inc. 1,600(a) 38,700
155,306
Hotels & Motels (0.19%)
Four Seasons Hotel, Inc. 800 49,750
Hilton Group PLC 18,500 129,393
179,143
Household Appliances (1.03%)
General Electric Co. 18,000 954,000
Household Audio & Video
Equipment (0.52%)
C-COR.Net Corp. 500(a) 13,500
Sony Corp. ADR 5,000 471,563
485,063
Household Furniture (0.01%)
Furniture Brands International, Inc. 700 10,588
Industrial Inorganic Chemicals (0.51%)
Akzo ADR 8,566 360,307
USEC, Inc. 23,500 108,688
468,995
Jewelry, Silverware & Plated
Ware (0.08%)
Tiffany & Co. 1,100 74,250
Life Insurance (0.81%)
American General Corp. 5,300 323,300
Lincoln National Corp. 9,800 354,025
Reinsurance Group of America, Inc. 2,500 75,313
752,638
Lumber & Other Building
Materials (0.65%)
Home Depot, Inc. 12,050 601,747
Measuring & Controlling Devices (0.32%)
Aclara Biosciences, Inc. 600(a) 30,562
Credence Systems Corp. 1,000(a) 55,188
Exfo Electro-Optical 400(a) 17,550
LTX Corp. 400(a) 13,975
Molecular Devices Corp. 800(a) 55,350
PE Corp. - PE Biosystems 1,100 72,463
Veeco Instruments, Inc. 689(a) 50,469
295,557
Medical Instruments & Supplies (0.08%)
Techne Corp. 600(a) 78,000
Medical Services & Health
Insurance (0.14%)
Torchmark Corp. 1,900 46,906
UnumProvident Corp. 3,900 78,244
125,150
Metalworking Machinery (0.13%)
Makita Corp. ADR 13,000 121,875
Miscellaneous Amusement, Recreation
Services (0.03%)
Station Casinos, Inc. 1,000(a) 25,000
Miscellaneous Business Services (0.08%)
Netratings, Inc. 1,500(a) 38,438
StorageNetworks, Inc. 400(a) 36,100
74,538
Miscellaneous Chemical Products (0.10%)
Millenium Chemicals, Inc. 5,500 93,500
Miscellaneous Electrical Equipment &
Supplies (0.47%)
TDL Corp. ADR 2,800 401,100
Universal Electronics, Inc. 1,400(a) 34,388
435,488
Miscellaneous Food & Kindred
Products (0.84%)
Groupe Danone 21,528 579,910
Nestle Reg. ADR 2,000 200,791
780,701
Miscellaneous Investing (0.13%)
AMLI Residential Properties Trust 1,300 30,631
Arden Realty Group, Inc. 1,300 30,550
Federal Realty Investment Trust 1,400 28,000
Public Storage, Inc. 1,400 32,813
121,994
Miscellaneous Manufacturers (1.38%)
Tyco International Ltd. 27,100 $1,283,863
Mortgage Bankers & Brokers (0.14%)
Countrywide Credit Industries, Inc. 4,400 133,375
Motion Picture Production &
Services (1.01%)
AT&T Corp.- Liberty Media 11,800(a) 286,150
Time Warner, Inc. 5,800 440,800
Todd AO Corp, Class A 800(a) 32,380
Viacom (B), Inc. 2,604(a) 177,560
936,890
Motor Vehicles & Equipment (1.57%)
Fiat Sp ADR 2,585 66,887
General Motors Corp. 2,100 121,931
General Motors, Class H 800(a) 70,200
Meritor Automotive, Inc. 26,166 287,826
Toyota Motor Co. ADR 8,600 801,412
Volkswagen ADR 14,000 107,362
1,455,618
Motorcycles, Bicycles & Parts (0.03%)
Ducati Motor Holding ADR 1,000(a) 25,750
Non-Classifiable Establishments (0.03%)
Keppel Corp. Ltd. ADR 5,375 23,254
Opthalmic Goods (0.25%)
Bausch & Lomb, Inc. 2,550 197,306
Cooper Cos., Inc. 1,000 36,375
233,681
Periodicals (0.03%)
Martha Stewart Living Omnimedia, Inc. 1,100(a) 24,200
Personal Credit Institutions (0.25%)
American Express Co. 4,500 234,563
Petroleum Refining (1.14%)
BP Amoco PLC 1,400 79,187
Conoco, Inc., Class A 11,500 253,000
Exxon Mobil Corp. 4,000 314,000
Total Fina Elf SA ADR 5,410 415,556
1,061,743
Photographic Equipment &
Supplies (0.50%)
Fuji Photo Film 8,800 372,900
Oce NV 5,733 91,728
464,628
Plumbing & Heating, Except
Electric (0.05%)
Masco Corp. 2,400 43,350
Professional & Commercial
Equipment (0.04%)
Biosource International, Inc. 1,500(a) 33,375
Radio & Television Broadcasting (1.00%)
Acme Communications, Inc. 2,000(a) 36,500
American Tower Corp., Class A 5,100(a) 212,606
AMFM, Inc. 2,900(a) 200,100
Clear Channel Comm. 3,600(a) $ 270,000
Pegasus Communications 1,900(a) 93,219
Radio One, Inc. 1,500(a) 44,344
Radio One, Inc., Class D W/I 3,000(a) 66,187
Radio Unica Communication 1,300(a) 9,100
932,056
Radio, Television & Computer
Stores (0.05%)
Intertan, Inc. 1,950(a) 22,913
Tweeter Home Entertainment Group, Inc. 800(a) 24,300
47,213
Railroads (0.09%)
Nagoya Railroad Co. Ltd. 2,900 83,600
Real Estate Operators & Lessors (0.60%)
Pinnacle Holdings, Inc. 6,300(a) 340,200
Sekisui House Ltd. ADR 2,300 213,258
553,458
Research & Testing Services (0.40%)
Corporate Executive Board Co. 4,400(a) 263,450
CV Therapeutics, Inc. 600(a) 41,587
Exelixis, Inc. 600(a) 20,025
Luminex Corp. 500(a) 20,813
Sequenom, Inc. 500(a) 22,688
368,563
Retail Stores, NEC (0.10%)
Costco Wholesale Corp. 2,800(a) 92,400
Savings Institutions (0.40%)
Citigroup, Inc. 6,200 373,550
Search & Navigation Equipment (0.19%)
Litton Industries, Inc. 4,300(a) 180,600
Soap, Cleaners & Toilet Goods (1.03%)
Kao Corp. ADR 2,200 673,715
Procter & Gamble Co. 2,000 114,500
Shiseido Co. Ltd. ADR 11,000 170,508
958,723
Special Industry Machinery (0.54%)
Applied Materials, Inc. 4,600(a) 416,875
ASM Lithography Holdings 1,300(a) 57,363
Asyst Technologies, Inc. 900(a) 30,825
505,063
Telephone Communication (3.69%)
AT&T Corp. 9,041 285,922
AT&T Wireless Group 3,200(a) 89,200
Airgate PCS, Inc. 300(a) 15,769
BCE, Inc. 11,180 266,224
Bell Atlantic Corp. 6,600 335,362
BellSouth Corp. 4,900 208,862
CFW Communications Co. 2,800 105,000
Clearnet Communications 600(a) 16,659
Corecomm Ltd. 1,275(a) 24,863
Flag Telecom Holdings Ltd. 6,800(a) 101,150
Global Crossing Ltd. 3,078(a) 80,990
GTE Corp. 4,900 305,025
Net2000 Communications 2,000(a) 32,750
NEXTLINK Communications, Class A 843(a) 31,981
Telephone Communication (Continued)
Northeast Optic Network, Inc. 600(a) 36,975
Rural Cellular Corp. 300(a) 22,969
Sprint Corp. 8,000 408,000
Telefonica SA ADR 7,959(a) 509,873
Telesp Cellular Parti-ADR 2,500 112,188
U.S. West, Inc. 1,100 94,325
Worldcom, Inc. 7,400(a) 339,475
3,423,562
Tires & Inner Tubes (0.25%)
Bridgestone ADR 1,100 233,409
Trucking & Courier Services, Except
Air (0.01%)
Forward Air Corp. 200(a) 8,000
Water Transportation of
Freight, NEC (0.16%)
Pennisular & Oriental Steamships ADR 5,850 99,721
American Classic Voyages Co. 2,300(a) 47,438
147,159
Women's Accessory & Specialty
Stores (0.10%)
Intimate Brands, Inc. 4,700 92,825
Women's Clothing Stores (0.18%)
Chico's Fas, Inc. 2,400(a) 48,000
David's Bridal, Inc. 3,200(a) 37,000
Limited, Inc. 3,600 77,850
162,850
Total Common Stocks 51,746,623
Preferred Stocks (0.08%)
Newspapers (0.06%)
News Corp Ltd Pfd ADR 1,100 52,250
Real Estate Agents & Managers (0.02%)
Atlantic Gulf Communities 4,809 22,843
Total Preferred Stocks 75,093
Principal
Amount Value
Bonds (16.02%)
Business Credit Institutions (0.54%)
General Electric Capital Corp.;
Class A4, 6.45%; 9/16/2002 $ 500,000 $ 504,715
Chemicals & Allied Product (0.21%)
DSM NV Notes; 6.25%; 5/15/2004 200,000(b) 192,680
Commercial Banks (1.68%)
Asian Dev. Bank Global
Bonds; 5.75%; 5/19/2003 500,000 482,828
Bank of America Corp. Senior
Notes; 5.88%; 2/15/2009 500,000 441,606
CIT Group, Inc. Global Notes;
7.38%; 3/15/2003 300,000 296,083
Merrill Lynch & Co. Notes;
6.00%; 2/12/2003 350,000 338,658
1,559,174
Communications Services, NEC (0.53%)
AT&T Corp. Notes;
6.50%; 9/15/2002 500,000 491,614
Department Stores (0.91%)
Target Corp. Bonds;
7.50%; 2/15/2005 350,000 355,160
Wal-Mart Stores, Inc. Bonds;
6.55%; 8/10/2004 500,000 493,421
848,581
Drugs (0.52%)
Johnson & Johnson Bonds;
6.55%; 9/1/2009 500,000 483,850
Electronic Distribution
Equipment (0.26%)
Israel Electric Corp. Senior Notes;
7.25%; 12/15/2006 250,000(b) 239,441
Finance Services (0.88%)
CNA Financial Notes;
6.50%; 4/15/2005 250,000 226,002
Norwest Financial, Inc. Notes;
6.70% 9/22/2004 350,000 341,652
Team Fleet Finance Corp. Notes;
7.35%; 5/15/2003 250,000 249,243
816,897
Fire, Marine & Casualty
Insurance (0.30%)
Prudential Insurance Co. Senior
Notes; 6.38%; 7/23/2006 300,000(b) 277,251
Household Audio & Video
Equipment (0.26%)
Sony Corp. Global Notes;
6.125%; 3/4/2003 250,000 243,879
Industrial Inorganic Chemicals (0.25%)
Monsanto Co. Notes;
5.75%; 12/1/2005 250,000 233,955
Life Insurance (0.27%)
Liberty Mutual Surplus Notes;
8.20%; 5/4/2007 250,000(b) 245,786
Lumber & Other Building
Materials (0.32%)
Home Depot, Inc. Notes;
6.50%; 9/15/2004 300,000 297,193
Miscellaneous Equipment Rental &
Leasing (0.22%)
Oil Enterprises Ltd. Global Bonds;
6.24%; 6/30/2008 211,615 199,388
Miscellaneous Investing (0.25%)
Simon Debartolo Note;
7.13%; 9/20/2007 250,000 229,460
Mortgage Bankers & Brokers (0.27%)
Abbey National PLC Yankee Bonds;
7.95%; 10/26/2029 250,000 246,712
Motor Vehicles & Equipment (0.55%)
Delphi Auto Systems Corp. Debentures;
7.125%; 5/1/2029 300,000 257,440
Ford Motor Credit Co Notes;
7.50%; 3/15/2005 250,000 248,630
506,070
Ordnance & Accessories, NEC(0.16%)
Lockheed Martin Corp. Notes;
7.95%; 12/1/2005 150,000 151,005
Paints & Allied Products (0.32%)
Rohm & Haas Co. Notes;
6.95%; 7/15/2004 300,000 298,025
Personal Credit Institutions (3.26%)
American General Finance Senior
Notes; 6.75%; 11/15/2004 350,000 337,040
Associates Corp. Global Notes;
5.80%; 4/20/2004 350,000 328,012
DaimlerChrysler NA Holdings
Notes; 7.20%; 9/1/2009 350,000 338,121
First USA Credit Card Trust
Bonds; 6.42%; 3/17/2005 550,000 542,960
General Electric Capital Corp.
Bonds; 6.81%; 11/3/2003 500,000 494,149
General Motors Acceptance
Global Notes; 7.48%; 2/28/2003 350,000 350,083
General Motors Acceptance
Global Notes; 6.85%; 6/17/2004 300,000 293,347
Household Finance Corp. Notes;
7.00%; 8/1/2003 350,000 343,031
3,026,743
Petroleum Refining (0.36%)
Conoco, Inc. Senior Notes;
5.90%; 4/15/2004 350,000 333,407
Savings Institutions (0.36%)
Citigroup, Inc. Senior Global Notes;
5.80%; 3/15/2004 350,000 333,696
School Buses (0.38%)
Republic of Italy Global Bonds;
7.25%; 2/7/2005 350,000 351,546
Security Brokers & Dealers (0.83%)
Donaldson Lufkin & Jenrette Notes;
6.90%; 10/1/2007 250,000 234,395
Lehman Brothers Holdings, Inc.
Global Notes; 6.63%; 4/1/2004 250,000 238,632
Salomon, Inc. Senior Notes;
7.30%; 5/15/2002 300,000 299,563
772,590
Soap, Cleaners & Toilet Goods (0.42%)
Procter & Gamble Co. Global
Bonds; 6.60%; 12/15/2004 400,000 393,048
Telephone Communication (1.71%)
AT&T Canada, Inc. Bonds;
7.65%; 9/15/2006 250,000 247,554
AT&T Corp. Global Notes;
6.50%; 3/15/2029 250,000 209,377
BellSouth Cap. Funding Notes
Bonds; 7.75%; 2/15/2010 500,000 499,757
Vodafone Airtouch PLC
Unsubordinated Notes;
7.63%; 2/15/2005 300,000(b) 300,415
Worldcom, Inc. Senior Notes;
6.40%; 8/15/2005 350,000 331,756
1,588,859
Total Bonds 14,865,564
Asset-Backed Securities (7.16%)
Business Credit Institutions (0.24%)
Ford Credit Auto Owner Trust
Asset-Backed Series 1998-B,
Class A3; 5.85%; 10/15/2001 223,735 223,211
Collateralized Mortgage Obligations (1.29%)
AESOP Funding II LLC, Class A1,
Series 1997-1; 6.22%; 10/20/2001 333,333(b) 332,967
Chase Manhattan Corp. Mortgage
Pass-Through Certificates;
6.00%; 2/15/2009 500,000 442,604
GMAC Commercial Mortgage Securities,
Inc., Series 1997-C2, Class A1;
6.45%; 12/15/2004 437,165 424,067
1,199,638
Commercial Banks (0.23%)
First Union Lehman Brothers
Commercial, Class 2 A1;
6.48%; 3/18/2004 216,094 213,107
Electric Services (0.50%)
Peso Energy Transition Trust
Asset-Backed Fixed Rate;
6.05%; 3/1/2009 500,000 466,895
Mortgage Pass Thru Securities (0.91%)
Lehman Large Loan
Class A1, Series 1997-Lli
6.79%; 6/12/2004 468,071 463,314
Merrill Lynch Mortgage Investors,
Inc., Class A1, Series 1997-C1,
6.95%; 6/18/2029 385,302 382,259
845,573
Personal Credit Institutions (3.73%)
American Express Credit Trust
Series 1997-1, Class A, Asset-Backed
6.40%; 4/15/2005 500,000 492,980
BMW Vehicle Owner Trust
Asset Backed Series 1999-A, Class A3
6.41%; 4/25/2003 1,000,000 991,160
Chemical Master Credit Card Trust
Series 1995-3, Class A,
6.23%; 4/15/2005 500,000 491,530
Citibank Credit Card Master Trust
Asset Backed Bonds; Series 1999-7,
Class A, 6.65%; 11/15/2006 500,000 488,750
Principal
Amount Value
Personal Credit Institutions (Continued)
Honda Auto Lease Trust
Asset Backed Bonds; Series 1999-A,
Class A4, 6.45%; 9/16/2002 $ 500,000 $ 496,590
Premier Auto Trust
Asset Backed Bonds; Series 1999-3,
Class A3, 6.27%; 4/8/2003 500,000 494,720
3,455,730
Trusts (0.26%)
Mid-State Trust
Pass Through Series 4, Class A,
8.33%; 4/1/2030 236,810 236,730
Total Asset-Backed Securities 6,640,884
U.S. Government Treasury Notes & Bonds (3.79%)
7.25%; 8/15/2004 1,000,000 1,033,438
6.50%; 8/15/2005 1,500,000 1,515,938
5.63%; 5/15/2008 1,000,000 964,375
Total U.S. Government Treasury Notes & Bonds 3,513,751
Principal
Type Rate Maturity Amount Value
Federal National Mortgage Association
(FNMA) Certificates (5.33%)
FNMA 5.50% 1/1/2014 $1,347,135 $1,248,761
FNMA 6.50% 8/15/2004 1,000,000 980,606
FNMA 7.13% 2/15/2005 1,000,000 1,003,464
FNMA 7.25% 1/15/2010 1,500,000 1,512,246
FNMA 8.00% 2/1/2012 198,609 200,926
Total FNMA Certificates 4,946,003
Federal Home Loan Mortgage Corporation
(FHLMC) Certificates (5.28%)
FHLMC 6.00% 12/1/2013 1,701,536 1,613,798
FHLMC 6.00% 4/1/2028 887,500 813,631
FHLMC 6.25% 10/15/2002 1,000,000 985,658
FHLMC 7.00% 3/15/2010 1,500,000 1,487,362
Total FHLMC Certificates 4,900,449
Government National Mortgage Association
(GNMA) Certificates (2.03%)
GNMA 7.00% 9/15/2004 $1,902,767 $1,881,693
Total Portfolio Investments (95.47%) 88,570,060
Cash and receivables, net of liabilities (4.53%) 4,198,958
Total Net Assets (100.00%) $92,769,018
(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 (65.03%)
Accounting, Auditing &
Bookkeeping (0.90%)
Paychex, Inc. 38,550 $ 1,619,100
Advertising (0.57%)
TMP Worldwide, Inc. 12,811(a) 945,612
WPPP Group PLC ADR 1,300 94,412
1,040,024
Air Transportation, Scheduled (0.06%)
Ryanair Holdings PLC ADR 3,000(a) 109,500
Aircraft & Parts (0.05%)
Rolls-Royce PLC ADR 5,600 98,700
Auto & Home Supply Stores (0.30%)
Autozone, Inc. 24,400(a) 536,800
Bakery Products (0.38%)
Sara Lee Corp. 35,700 689,456
Beverages (0.81%)
PepsiCo, Inc. 30,300 1,346,456
Seagram Co. Ltd. 2,200 127,600
1,474,056
Blast Furnace & Basic Steel
Products (0.05%)
Pohang Iron & Steel ADR 3,800 91,200
Cable & Other Pay TV Services (1.04%)
Comcast Corp. 46,500(a) 1,883,250
Commercial Banks (3.32%)
ABN-AMRO Holdings NV ADR 9,926 243,807
Bank of America Corp. 10,900 468,700
Bank of Tokyo-Mitsubishi Ltd. ADR 14,800 179,450
Chase Manhattan Corp. 13,500 621,844
Dresdner Bank AG ADR 1,600 66,564
Fifth Third Bancorp. 8,400 531,300
First Union Corp. 19,308 479,080
FleetBoston Financial Corp. 17,441 592,994
HSBC Holdings PLC 2,200 127,463
National Australia Bank Ltd. ADR 2,700 223,425
PNC Financial Corp. 11,100 520,312
Royal Bank of Canada 2,300 118,881
San Paolo-IMI S.p.A ADR 8,500 300,688
State Street Corp. 7,000 742,438
Wells Fargo Co. 20,400 790,500
6,007,446
Commercial Printing (0.22%)
Creo Products, Inc. 2,500(a) 56,875
R.R. Donnelley & Sons Co. 15,400 347,463
404,338
Communications Equipment (4.28%)
Alcatel ADR 4,100 $ 272,650
Canon, Inc. ADR 4,200 211,575
Ericsson LM Telefon ADR 12,800 256,000
Hanson PLC ADR 2,800 98,700
Koninklijke (Royal) Philips Electronics NV6,100 289,750
Lucent Technologies, Inc. 9,800 580,650
Motorola, Inc. 22,566 655,824
Nortel Networks Corp. 41,800 2,852,850
Siemens AG ADR 1,150 173,624
Tellabs, Inc. 34,400(a) 2,354,250
7,745,873
Communications Services, NEC (0.03%)
Korea Telecom Corp. ADR 1,100 53,213
Computer & Data Processing
Services (4.42%)
3COM Corp. 7,100(a) 409,138
America Online, Inc. 9,700(a) 511,675
BMC Software, Inc. 12,800(a) 467,000
Computer Associates International, Inc.2,200 112,612
Compuware Corp. 16,000(a) 166,000
Electronic Data Systems Corp. 16,400 676,500
First Data Corp. 22,400 1,111,600
Microsoft Corp. 18,000(a) 1,440,000
Oracle Systems Corp. 6,200(a) 521,187
Sun Microsystems, Inc. 26,500(a) 2,409,844
Unisys Corp. 11,200(a) 163,100
7,988,656
Computer & Office Equipment (7.59%)
Automatic Data Processing, Inc. 18,700 1,001,619
Cabletron Systems, Inc. 18,800(a) 474,700
Cisco Systems, Inc. 74,100(a) 4,709,981
Compaq Computer Corp. 33,700 861,456
Dell Computer Corp. 11,800(a) 581,887
EMC Corp. 27,200(a) 2,092,700
Gateway, Inc. 21,200(a) 1,203,100
Hewlett-Packard Co. 9,300 1,161,338
Hitachi Ltd. ADR 1,200 172,950
International Business Machines Corp. 10,800 1,183,275
NEC Corp. ADR 1,300 206,050
Orbotech Ltd. ADR 900(a) 83,588
13,732,644
Consumer Products (0.47%)
Fortune Brands, Inc. 17,800 410,513
Phillip Morris Cos., Inc. 16,800 446,250
856,763
Crude Petroleum & Natural Gas (0.48%)
Texaco, Inc. 16,200 862,650
Department Stores (1.17%)
Kohl's Corp. 26,800(a) 1,490,750
Wal-Mart Stores, Inc. 10,700 616,587
2,107,337
Dimension Stone (0.05%)
Potash Corp. of Saskatchewan 1,600 88,300
Drugs (6.73%)
Abbott Laboratories 24,500 1,091,781
American Home Products Corp. 18,400 1,081,000
Astrazeneca Group PLC ADR 3,100 144,150
Aventis ADR 4,000 290,250
Bristol-Myers Squibb Co. 35,400 2,062,050
Elan Corp. PLC ADR 4,500(a) 217,969
Glaxo Welcome PLC ADR 3,300 190,781
Drugs (Continued)
Johnson & Johnson 13,700 $ 1,395,688
Merck & Co., Inc. 16,300 1,248,988
Novartis AG ADR 3,100 124,000
Pfizer, Inc. 65,100 3,124,800
Pharmacia Corp. 13,532 699,435
Schering-Plough Corp. 9,900 499,950
12,170,842
Electric Services (1.23%)
American Electric Power Co., Inc. 17,460 517,252
Dominion Resources, Inc. 11,600 497,350
Endesa SA ADR 5,700 111,150
Potomac Electric Power Co. 18,200 455,000
Reliant Energy, Inc. 21,800 644,463
2,225,215
Electrical Industrial Apparatus (0.53%)
Emerson Electric Co. 15,900 959,962
Electronic Components &
Accessories (4.46%)
Intel Corp. 29,900 3,997,256
JDS Uniphase Corp. 5,400(a) 647,325
Linear Technology Corp. 12,300 786,431
Maxim Integrated Products, Inc. 22,900(a) 1,555,769
STMicroelectronics NV 1,300 83,444
Texas Instruments, Inc. 14,500 995,969
8,066,194
Farm & Garden Machinery (0.02%)
CNH Global NV 3,500 32,375
Fats & Oils (0.24%)
Archer Daniels Midland Co. 43,388 425,745
Federal & Federally Sponsored
Credit (0.95%)
Federal National Mortgage Association 33,000 1,722,187
Finance Services (0.05%)
Nomura Securities Co. Ltd. ADR 400 98,108
Fire, Marine & Casualty
Insurance (1.86%)
American International Group, Inc. 20,100 2,361,750
Berkshire Hathaway, Class A 5(a) 269,000
Hartford Financial Services Group, Inc.6,400 358,000
Loews Corp. 6,200 372,000
3,360,750
Foreign Banks, Branches &
Agencies (0.03%)
Fortis NV ADR 2,000 57,500
Furniture & Home Furnishings
Stores (0.89%)
Bed Bath & Beyond, Inc. 44,500(a) 1,613,125
General Industrial Machinery (0.12%)
Pall Corp. 12,000 222,000
Grain Mill Products (0.29%)
Ralston-Ralston Purina Group 26,500 528,344
Groceries & Related Products (1.18%)
SYSCO Corp. 46,600 $ 1,963,025
Unilever PLC ADR 6,600 165,825
2,128,850
Grocery Stores (0.38%)
Albertson's, Inc. 20,834 692,730
Heavy Construction, Except
Highway (0.09%)
Vivendi ADR 8,800 155,974
Hospitals (0.15%)
Tenet Healthcare Corp. 10,300(a) 278,100
Household Appliances (2.29%)
General Electric Co. 78,100 4,139,300
Household Audio & Video
Equipment (0.08%)
Sony Corp. ADR 1,600 150,900
Industrial Inorganic Chemicals (0.43%)
Dow Chemical Co. 11,400 344,138
Praxair, Inc. 11,400 426,787
770,925
Investment Offices (0.08%)
Amvescap PLC ADR 1,900 148,912
Life Insurance (0.56%)
AXA ADR 3,750 298,359
ING Groep NV ADR 5,076 342,630
Lincoln National Corp. 10,200 368,475
1,009,464
Lumber & Other Building
Materials (0.99%)
Home Depot, Inc. 30,900 1,543,069
Lowe's Cos., Inc. 6,200 254,587
1,797,656
Machinery, Equipment &
Supplies (0.26%)
Grainger (W.W.), Inc. 15,100 465,269
Management & Public Relations (0.28%)
Dun & Bradstreet Corp. 17,600 503,800
Measuring & Controlling Devices (0.28%)
Agilent Technologies, Inc. 6,787(a) 500,541
Medical Instruments & Supplies (1.58%)
Becton, Dickinson & Co. 11,100 318,431
Guidant Corp. 35,600(a) 1,762,200
St. Jude Medical, Inc. 17,050(a) 782,169
2,862,800
Medical Services & Health
Insurance (0.12%)
Aon Corp. 7,237 224,799
Miscellaneous Chemical
Products (0.47%)
Du Pont (E. I.) De Nemours 19,263 842,756
Miscellaneous Converted Paper (0.47%)
Minnesota Mining & Mfg. Co. 10,200 841,500
Miscellaneous Food & Kindred
Products (0.11%)
Groupe Danone 7,100 191,256
Miscellaneous Furniture &
Fixtures (0.32%)
Newell Rubbermaid, Inc. 22,600 581,950
Miscellaneous Manufacturers (0.41%)
Tyco International Ltd. 15,600 739,050
Miscellaneous Non-Durable Goods (0.13%)
Diageo PLC ADR 6,600 234,712
Miscellaneous Shopping Goods
Stores (0.22%)
Staples, Inc. 25,700(a) 395,138
Motion Picture Production &
Services (0.18%)
Walt Disney Co. 8,200 318,263
Newspapers (0.11%)
News Corp. Ltd. ADR 2,100 114,450
United News & Media PLC ADR 3,300 87,450
201,900
Oil & Gas Field Services (0.55%)
Diamond Offshore Drilling, Inc. 11,500 403,937
Petroleum Geo-Services ADR 6,200(a) 105,788
Schlumberger Ltd. 6,400 477,600
987,325
Paper Mills (0.57%)
Fort James Corp. 20,200 467,125
Kimberly Clark Corp. 9,700 556,538
1,023,663
Petroleum Refining (1.41%)
British Petroleum Amoco PLC 15,936 901,380
Conoco, Inc., Class B 18,084 444,188
Exxon Mobil Corp. 11,900 934,150
Total Fina Elf SA ADR 3,600 276,525
2,556,243
Pulp Mills (0.13%)
Boise Cascade Corp. 9,300 240,638
Radio & Television Broadcasting (0.09%)
Carlton Communications PLC ADR 1,600 104,000
Grupo Televisa SA GDR 800(a) 55,150
159,150
Research & Testing Services (0.10%)
Qiagen NV ADR 1,000(a) 174,000
Rubber & Plastics Footwear (0.41%)
Nike, Inc. 18,600 740,513
Sanitary Services (0.24%)
Waste Management, Inc. 23,205 440,895
Savings Institutions (1.86%)
Citigroup, Inc. 55,800 3,361,950
Security Brokers & Dealers (0.30%)
Bear Stearns Cos., Inc. 6,512 271,062
Morgan Stanley Dean Witter & Co. 3,200 266,400
537,462
Telegraph & Other
Communications (0.03%)
Sonera Corp. ADR 1,000 46,000
Telephone Communication (4.51%)
AT&T Corp. 28,450 899,731
AT&T Wireless Group 11,298(a) 314,932
Alltel Corp. 9,000 557,437
BellSouth Corp. 17,900 762,988
British Telecommunications PLC ADR 750 99,187
Cable & Wireless PLC ADR 3,000 150,188
GTE Corp. 14,900 927,525
Hellenic Telecom Organization SA ADR 9,500 115,781
Koninklijke KPN NV ADR 4,232 190,176
NTT Docomo, Inc. ADR 500 67,816
Nippon Telegraph & Telephone Corp. 800 54,700
Nokia Corp. ADR, Class A 4,400 219,725
SBC Communications, Inc. 18,589 803,974
Telecom Corp. of New Zealand Ltd. ADR 3,300 92,813
Telefonica SA ADR 1,167(a) 74,797
Vodafone AirTouch PLC ADR 3,300 136,744
WorldCom, Inc. 58,700(a) 2,692,862
8,161,376
Tires & Inner Tubes (0.07%)
Rhodia SA ADR 7,700 131,863
Total Common Stocks 117,609,276
Principal
Amount Value
Bonds (16.82%)
Beverages (0.75%)
Seagram Co. Ltd. Notes;
6.50%; 4/1/2003 $1,400,000 $ 1,358,360
Blast Furnace & Basic Steel
Products (0.94%)
Carpenter Technology Corp.
Medium-Term Notes;
6.99%; 4/20/2018 1,700,000 1,537,242
Quanex Corp. Convertible
Subordinated Debentures;
6.88%; 6/30/2007 200,000 168,500
1,705,742
Commercial Banks (1.61%)
NationsBank Corp. Subordinated
Notes; 7.80%; 9/15/2016 3,000,000 2,908,137
Communications Equipment (0.96%)
Motorola, Inc. Debentures;
7.50%; 5/15/2025 1,750,000 1,738,693
Computer & Office Equipment (1.56%)
Seagate Technology, Inc.
Senior Notes;
7.13%; 3/1/2004 $2,000,000 $ 1,902,606
7.37%; 3/1/2007 1,000,000 923,494
2,826,100
Consumer Products (0.82%)
Philip Morris Cos., Inc. Notes;
7.25%; 9/15/2001 1,500,000 1,483,857
Department Stores (1.40%)
Dillard's, Inc. Notes;
6.43%; 8/1/2004 2,000,000 1,788,228
7.38%; 6/1/2006 845,000 745,209
2,533,437
Farm & Garden Machinery (0.87%)
Deere & Co. Senior Debentures;
8.50%; 1/9/2022 1,500,000 1,568,315
Fire, Marine & Casualty
Insurance (0.70%)
St. Paul Cos., Inc.
Medium Term Notes; Series C
6.38%; 12/15/2008 1,400,000 1,273,251
Funeral Service & Crematories (1.17%)
Service Corp. International Notes;
6.75%; 6/1/2001 2,450,000 2,107,000
General Industrial Machinery (0.16%)
Ingersoll-Rand Medium-Term Notes;
6.46%; 11/19/2003 300,000 291,964
Medical Service & Health
Insurance (0.38%)
Aetna Services, Inc.;
6.38%; 8/15/2003 715,000 682,801
Miscellaneous Investing (0.81%)
Kimco Realty Corp. Senior Notes;
6.50%; 10/1/2003 1,525,000 1,459,011
Paper & Paper Products (0.42%)
Boise Cascade Office Products
Corp. Notes; 7.05%; 5/15/2005 800,000 759,379
Petroleum & Petroleum
Products (0.86%)
Enron Corp. Notes;
6.75%; 9/1/2004 1,600,000 1,558,259
Railroads (0.89%)
Norfolk Southern Debentures;
9.00%; 3/1/2021 1,500,000 1,614,036
Search & Navigation Equipment (0.55%)
Raytheon Co. Notes;
5.95%; 3/15/2001 1,000,000 989,403
Security Brokers & Dealers (0.71%)
Lehman Brothers, Inc. Senior
Subordinated Notes;
7.25%; 4/15/2003 1,300,000 1,282,380
Surety Insurance (1.26%)
Allstate Corp. Debentures;
6.75%; 5/15/2018 2,650,000 2,284,411
Trucking & Courier Services,
Except Air (0.00%)
Builders Transport, Inc. Convertible
Subordinated Debentures;
6.50%; 5/1/2011 306,000(b) 765
Total Bonds 30,425,301
Principal
Type Rate Maturity Amount Value
Federal Home Loan Mortgage Corporation (FHLMC)
Certificates (3.68%)
FHLMC 6.00% 1/1/2029 $ 935,795 $ 857,858
FHLMC 6.50 9/1/2027-5/1/2029 4,773,832 4,512,101
FHLMC 7.00 12/1/2027 1,320,021 1,277,447
Total FHLMC Certificates 6,647,406
Federal National Mortgage Association (FNMA)
Certificates (0.76%)
FNMA 6.50 8/1/2028 1,464,569 1,381,973
Government National Mortgage Association (GNMA)
Certificates (3.48%)
GNMA 6.00 1/15/2029 1,945,821 1,792,162
GNMA II 6.00 9/20/2026-7/20/2028 4,901,509 4,499,333
Total GNMACertificates 6,291,495
Principal
Amount Value
Asset-Backed Securities (7.08%)
Commercial Banks (1.10%)
Chase Manhattan Credit Card Master
Trust Asset-Backed Cert.,
Series 1997-2, Class A;
6.30%; 4/15/2003 $2,000,000 $ 1,998,540
Mortgage Pass-Through Securities (5.98%)
DLJ Commercial Mortgage Corp.,
Mortgage Pass-Through Cert.,
Series 1998-CF1, Class A-1B;
6.41%; 2/18/2008 2,900,000 2,719,098
First Union Commercial Mortgage
Trust Commercial Mortgage
Pass-Through Certificate,
Series 1999-C1, Class B;
6.22%; 12/15/2008 $1,900,000 $ 1,739,078
GMAC Commercial Mortgage
Securities, Inc. Mortgage
Pass-Through Certificates,
Series 1998-C2, Class C;
6.50%; 8/15/2008 2,500,000 2,302,550
J.P. Morgan Commercial Mortgage
Finance Corp. Mortgage
Pass-Through Certificates,
Series 1999-C7, Class B;
6.66%; 10/15/2035 1,000,000 938,443
LB Commercial Mortgage Trust,
Mortgage Pass-Through Cert.,
Series 1998-C4, Class A-1B;
6.21%; 10/15/2008 1,000,000 924,420
Lehman Large Loan
Series 1997-LLI, Class A1
6.79%; 6/12/2004 215,313 213,125
Morgan Stanley Capital I, Inc.
Commercial Mortgage,
Series 1999-RM1, Class B;
6.81%; 12/15/2031 2,100,000 1,977,281
10,813,995
Total Asset-Backed Securities 12,812,535
Commercial Paper (2.21%)
Personal Credit Institutions (2.21%)
Investment in Joint Trading Account,
Associates First Captial Corp.;
6.89%; 7/3/2000 4,001,608 4,001,608
Total Portfolio Investments (99.06%) 179,169,594
Cash and receivables, net of liabilities (0.94%) 1,697,953
Total Net Assets (100.00%) $180,867,547
(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 (96.59%)
Beverages (5.13%)
Anheuser-Busch Cos., Inc. 2,400 $ 179,250
PepsiCo, Inc. 3,500 155,531
334,781
Chemicals & Allied Products (0.83%)
Dow Chemical Co. 1,800 54,338
Commercial Banks (3.14%)
FleetBoston Financial Corp. 2,200 74,800
J.P. Morgan & Co., Inc. 900 99,112
Wells Fargo Co. 800 31,000
204,912
Communications Equipment (2.41%)
Motorola, Inc. 5,400 156,937
Computer & Data Processing (5.56%)
Microsoft Corp. 1,900(a) 152,000
Oracle Systems Corp. 1,100(a) 92,469
Sun Microsystems, Inc. 1,300(a) 118,219
362,688
Computer & Office Equipment (17.16%)
Automatic Data Processing, Inc. 4,100 219,606
Cisco Systems 3,600(a) 228,825
Dell Computer Corp. 3,800(a) 187,387
EMC Corp. 3,200(a) 246,200
Hewlett-Packard Co. 1,900 237,262
1,119,280
Department Stores (3.45%)
Wal-Mart Stores, Inc. 3,900 224,738
Drugs (11.05%)
American Home Products 2,400 141,000
Bristol-Myers Squibb 1,800 104,850
Johnson & Johnson 2,300 234,313
Merck & Co. 2,600 199,225
Pharmacia Corp. 799 41,298
720,686
Eating & Drinking Places (2.12%)
McDonald's Corp. 4,200 138,338
Electrical Industrial Apparatus (2.68%)
Emerson Electric Co. 2,900 175,088
Electronic Components &
Accessories (4.51%)
Intel Corp. 1,700 227,269
Solectron Corp. 1,600(a) 67,000
294,269
Fire, Marine & Casualty Insurance (3.42%)
American International Group, Inc. 1,900 223,250
Gas Production & Distribution (3.26%)
Williams Cos., Inc. 5,100 212,606
Groceries & Related Products (2.32%)
SYSCO Corp. 3,600 151,650
Household Appliances (3.66%)
General Electric Co. 4,500 $ 238,500
Measuring & Controlling Devices (0.82%)
Agilent Technologies, Inc. 724(a) 53,395
Medical Instruments & Supplies (1.21%)
Guidant Corp. 1,600(a) 79,200
Miscellaneous Chemical Products (2.01%)
Du Pont (E. I.) De Nemours 3,000 131,250
Miscellaneous Converted Paper
Products (1.52%)
Minnesota Mining & Mfg. Co. 1,200 99,000
Personal Credit Institutions (1.09%)
Capital One Financial Corp. 1,600 71,400
Petroleum Refining (5.25%)
Exxon Mobil Corp. 2,244 176,154
Royal Dutch Petroleum Co. ADR 2,700 166,219
342,373
Savings Institutions (3.51%)
Citigroup, Inc. 3,800 228,950
Security Brokers & Dealers (0.89%)
Morgan Stanley Dean Witter & Co. 700 58,275
Special Industry Machinery (3.33%)
Applied Materials, Inc. 2,400(a) 217,500
Telephone Communication (6.26%)
AT&T Corp. 3,600 113,850
Alltel Corp. 1,600 99,100
GTE Corp. 1,500 93,375
Sprint Corp. 2,000 102,000
408,325
Total Common Stocks (96.59%) 6,301,729
Preferred Stock (0.95%)
Electric Services (0.95%)
Alliant Energy Resources 900 61,875
Principal
Amount Value
Commercial Paper (2.18%)
Personal Credit Institutions (2.18%)
Investments in Joint Trading Account,
Associates First Capital Corp.;
6.89%; 7/3/2000 $142,399 $ 142,399
Total Portfolio Investments (99.72%) 6,506,003
Cash and receivables, net of liabilities (0.28%) 18,080
Total Net Assets (100.00%) $6,524,083
(a) Non-income producing security - No dividend paid during the past twelve
months.
BOND ACCOUNT
Principal
Amount Value
Bonds (90.02%)
Air Transportation, Scheduled (2.91%)
Continental Airlines Pass-Through Cert.,
Series 1999-2, Class A-1;
7.26%; 9/15/2021 $1,984,106 $ 1,882,996
Federal Express Corp.,
Pass-Through Cert.;
7.96%; 3/28/2017 282,311 269,889
7.58%; 7/2/2019 500,000 477,405
Northwest Airlines Pass-Through Cert.,
Series 1999-1, Class 1A;
6.81%; 2/1/2020 689,504 619,202
3,249,492
Bakery Products (0.77%)
Nabisco, Inc. Notes;
7.05%; 7/15/2007 950,000 859,805
Cable & Other Pay TV Services (3.53%)
CSC Holdings, Inc. Debentures;
8.13%; 8/15/2009 1,500,000 1,459,350
Cox Communications, Inc. Notes;
7.75%; 8/15/2006 2,500,000 2,487,820
3,947,170
Cash Grains (0.27%)
Aktiebolaget SKF Senior Notes;
7.63%; 7/15/2003 300,000 296,885
Computer & Data Processing
Services (2.59%)
Comdisco, Inc.
Medium-Term Notes;
6.00%; 1/30/2002 2,000,000 1,915,348
6.65%; 11/13/2001 1,000,000 972,179
2,887,527
Computer & Office Equipment (1.66%)
Seagate Technology, Inc. Senior
Notes; 7.37%; 3/1/2007 2,000,000 1,846,988
Credit Reporting & Collection (2.67%)
Orix Credit Alliance Short-Term Notes;
7.00%; 3/15/2001 3,000,000(a) 2,984,610
Crude Petroleum & Natural Gas (1.43%)
Louis Dreyfus Natural Gas Corp.
Senior Notes; 6.88%; 12/1/2007 1,500,000 1,346,879
Occidental Petroleum Corp.
Medium-Term Notes;
9.73%; 6/15/2001 250,000 254,173
1,601,052
Electric Services (13.24%)
AES Ironwood LLC Senior Secured
Bonds; 8.88%; 11/30/2025 3,000,000(a) 2,924,970
CE Generation LLC Senior Secured
Notes; 7.42%; 12/15/2018 987,000 906,421
Calpine Corp. Notes;
7.75%; 4/15/2009 2,000,000 1,885,000
Central Vermont Public Services
Corporate Bond; 8.13%; 8/1/2004 2,000,000 1,935,030
East Coast Power LLC Senior Secured
Notes; 7.54%; 6/30/2017 2,000,000 1,800,680
Osprey Trust/Osprey I, Inc. Senior
Secured Notes; 8.31%; 1/15/2003 3,500,000(a) 3,511,330
Southern Energy, Inc. Senior Notes;
7.90%; 7/15/2009 2,000,000(a) 1,828,714
14,792,145
Engines & Turbines (0.81%)
Brunswick Corp. Debentures;
7.38%; 9/1/2023 1,000,000 901,327
Fabricated Rubber Products,
NEC (0.24%)
M.A. Hanna Co. Senior Notes;
9.38%; 9/15/2003 250,000 261,552
Farm & Garden Machinery (1.20%)
Case Corp. Notes; 7.25%; 1/15/2016 1,500,000 1,345,977
Funeral Service & Crematories (0.97%)
Service Corp. International Notes;
6.00%; 12/15/2005 2,000,000 1,080,000
General Government, NEC (1.98%)
Mexican U.S. Corporate Bond;
8.63%; 3/12/2008 1,500,000 1,440,000
Republic of Korea Corporate Bond;
8.88%; 4/15/2008 750,000 777,188
2,217,188
Gold & Silver Ores (0.61%)
Placer Dome, Inc. Notes;
7.13%; 6/15/2007 750,000 686,393
Groceries & Related Products (1.25%)
Supervalu, Inc. Medium-Term Notes,
Series B; 6.49%; 12/12/2005 1,500,000 1,397,225
Grocery Stores (1.69%)
American Stores Co. Bonds;
8.00%; 6/1/2026 1,000,000 968,209
Food Lion, Inc. Notes;
7.55%; 4/15/2007 1,000,000 924,761
1,892,970
Heavy Construction, Except
Highway (2.06%)
Mastec, Inc. Senior Subordinated Notes;
7.75%; 2/1/2008 2,500,000 2,300,000
Highway & Street Construction (0.30%)
Foster Wheeler Corp. Notes;
6.75%; 11/15/2005 400,000 334,588
Hotels & Motels (2.58%)
Marriott International, Inc. Notes;
6.63%; 11/15/2003 3,000,000 2,885,625
Industrial Organic Chemicals (2.19%)
Equistar Chemicals LP Senior Notes;
8.75%; 2/15/2009 2,500,000 2,443,663
Machinery, Equipment &
Supplies (0.66%)
AAR Corp. Notes; 7.25%; 10/15/2003 750,000 737,321
Medical Service & Health
Insurance (1.87%)
Conseco, Inc. Notes;
8.75%; 2/9/2004 3,000,000 2,085,000
Millwork, Plywood & Structural
Members (0.10%)
Georgia-Pacific Corp.
Debentures; 9.50%; 12/1/2011 100,000 106,892
Miscellaneous Amusement, Recreation
Service (1.34%)
Park Place Entertainment Corp.;
Senior Subordinated Notes;
9.38%; 2/15/2007 1,500,000 1,500,000
Miscellaneous Investing (3.13%)
First Industrial LP Medium-Term
Notes; 7.00%; 12/1/2006 2,000,000 1,830,260
Washington REIT Senior Notes;
7.25%; 8/13/2006 1,000,000 940,898
Weingarten Realty Investors
Medium-Term Notes;
7.29%; 5/23/2005 750,000 721,063
3,492,221
Miscellaneous Metal Ores (0.33%)
Cyprus Minerals Co. Notes;
10.13%; 4/1/2002 350,000 363,611
Mortgage Bankers & Brokers (1.67%)
Chase Commercial Mortgage
Securities Corp. Class C Notes;
6.60%; 12/19/2007 2,000,000 1,862,604
Motor Vehicles & Equipment (0.67%)
TRW, Inc. Medium-Term Notes;
9.25%; 12/30/2011 700,000 751,051
Natural Gas Liquids (1.26%)
Enron Corp. Corporate Bonds;
7.38%; 5/15/2019 1,500,000 1,412,988
Newspapers (2.61%)
United News & Media PLC Notes;
7.75%; 7/1/2009 3,000,000 2,912,169
Operative Builders (1.59%)
Pulte Corp.
Senior Notes; 8.38%; 8/15/2004 1,000,000 970,548
Notes; 7.63%; 10/15/2017 1,000,000 801,156
1,771,704
Paper & Paper Products (1.27%)
Boise Cascade Office Products Corp.
Notes; 7.05%; 5/15/2005 1,500,000 1,423,836
Paper Mills (1.42%)
Bowater, Inc. Debentures;
9.38%; 12/15/2021 200,000 209,346
Champion International Corp. Notes;
7.10%; 9/1/2005 875,000 842,236
Potlatch Corp. Medium-Term
Notes; 8.75%; 1/14/2022 500,000 539,220
1,590,802
Personal Credit Institutions (3.11%)
Ford Motor Credit Co. Senior Notes;
7.38%; 10/28/2009 500,000 483,760
7.88%; 6/15/2010 3,000,000 2,995,857
3,479,617
Petroleum & Petroleum Products (2.37%)
Phillips Petroliem Co. Notes;
8.75%; 5/25/2010 2,500,000 2,647,140
Petroleum Refining (2.83%)
Ashland Oil, Inc. Medium-Term Notes;
8.54%; 1/13/2005 250,000 254,315
7.71%; 5/11/2007 500,000 486,330
7.73%; 7/15/2013 250,000 240,090
Sun Co., Inc.
Notes; 7.13%; 3/15/2004 200,000 197,098
Debentures; 9.00%; 11/1/2024 500,000 528,818
Tosco Corp. Notes;
7.25%; 1/1/2007 1,500,000 1,458,858
3,165,509
Public Building & Related
Furniture (0.84%)
Lear Corp. Senior Notes;
7.96%; 5/15/2005 1,000,000 939,974
Pulp Mills (0.18%)
International Paper Co. Medium-Term
Notes; 9.70%; 8/15/2000 200,000 200,494
Railroads (2.38%)
Union Pacific Corp.
Notes; 6.40%; 2/1/2006 1,000,000 937,146
Debentures; 7.00%; 2/1/2016 1,000,000 899,551
Corporate Bond; 6.63%; 2/1/2029 1,000,000 826,449
2,663,146
Rental of Railroad Cars (0.85%)
GATX Capital Corp. Medium-Term
Notes, Series C;
6.86%; 10/13/2005 1,000,000 948,234
Residential Building Construction (1.56%)
D.R. Horton, Inc. Senior Notes;
8.00%; 2/1/2009 2,000,000 1,740,000
Security Brokers & Dealers (2.57%)
Lehman Brothers, Inc.
Senior Subordinated Notes;
7.38%; 1/15/2007 3,000,000 2,873,166
Telephone Communication (10.46%)
Dominion Resources, Inc. Corporate
Bond; 8.13%; 6/15/2010 900,000 908,294
Global Crossing Holdings Ltd.
Senior Notes; 9.13%; 11/15/2006 2,500,000 2,393,750
Sprint Capital Corp.
Notes; 6.90%; 5/1/2019 1,000,000 887,612
Global Bonds; 6.88%; 11/15/2028 4,000,000 3,460,320
Vodafone Airtouch PLC
Unsubordinated Notes;
7.75%; 2/15/2010 2,000,000(a) 1,982,904
WorldCom, Inc. Corporate Bond;
8.25%; 5/15/2010 2,000,000 2,047,112
11,679,992
Total Bonds 100,559,653
U.S. Government Bonds (1.62%)
Treasury Notes (1.62%)
U.S. Government Treasury Note;
6.50%; 2/15/2010 1,750,000 1,809,610
Asset-Backed Securities (5.37%)
Investment Offices (2.48%)
Morgan Stanley Capital I, Inc.
Commercial Mortgage
Pass-Through Cert., Series 99-WF1,
Class C; 6.54%; 10/15/2008 3,000,000 2,765,760
Security Brokers & Dealers (2.89%)
J.P. Morgan Commercial Mortgage
Finance Corp. Mortgage Pass-Through
Cert., Series 2000-C9, Class A2;
7.77%; 10/15/2032 1,250,000 1,270,588
Merrill Lynch Mortgage Investors, Inc.
Collateralized Mortgage-Backed
Security, Series 95-C3, Class C;
7.35%*; 12/26/2025 2,000,000 1,963,840
Total Asset-Backed Securities 6,000,188
Commercial Paper (0.97%)
Personal Credit Institutions (0.97%)
Investment in Joint Trading Account,
Associates First Capital Corp.;
6.89%; 7/3/2000 1,081,172 1,081,172
Total Portfolio Investments (97.42%) 109,450,623
Cash, receivables and other assets,
net of liabilities (2.02%) 2,256,208
Total Net Assets (100.00%) $111,706,831
(a) Restricted security - See Note 4 to the financial statements.
* Variable rate (monthly).
CAPITAL VALUE ACCOUNT
Shares
Held Value
Common Stocks (98.83%)
Aircraft & Parts (1.40%)
Honeywell International, Inc. 119,500 $ 4,025,656
Bakery Products (1.32%)
Sara Lee Corp. 196,200 3,789,113
Beverages (4.25%)
PepsiCo, Inc. 126,700 5,630,231
Seagram Co. Ltd. 113,800 6,600,400
12,230,631
Chemicals & Allied Products (1.26%)
Dow Chemical Co. 119,700 3,613,444
Combination Utility Services (0.88%)
Montana Power Co. 71,100 2,510,719
Commercial Banks (9.92%)
Bank of America Corp. 111,490 4,794,070
Chase Manhattan Corp. 148,050 6,819,553
Comerica, Inc. 124,700 5,595,913
FleetBoston Financial Corp. 162,440 5,522,960
PNC Financial Corp. 123,600 5,793,750
28,526,246
Communications Equipment (1.62%)
Motorola, Inc. 159,900 4,647,094
Computer & Data Processing (1.69%)
Electronic Data Systems Corp. 48,904 2,017,290
First Data Corp. 57,400 2,848,475
4,865,765
Computer & Office Equipment (3.20%)
Compaq Computer Corp. 143,900 3,678,444
Hewlett-Packard Co. 44,300 5,531,963
9,210,407
Consumer Products (1.86%)
Fortune Brands, Inc. 232,100 5,352,806
Crude Petroleum & Natural Gas (3.95%)
Burlington Resources, Inc. 78,200 2,991,150
Texaco, Inc. 157,050 8,362,912
11,354,062
Department Stores (2.68%)
Sears, Roebuck & Co. 139,300 4,544,663
Target Corp. 54,400 3,155,200
7,699,863
Drugs (7.75%)
Abbott Laboratories 172,500 7,687,031
American Home Products Corp. 103,500 6,080,625
Merck & Co., Inc. 111,130 8,515,336
22,282,992
Eating & Drinking Places (1.59%)
McDonald's Corp. 138,500 4,561,844
Electric Services (7.85%)
AES Corp. 148,892(a) $ 6,793,197
Dominion Resources, Inc. 68,600 2,941,225
Duke Energy Corp. 98,400 5,547,300
Enron Corp. 113,200 7,301,400
22,583,122
Electrical Industrial Apparatus (2.77%)
Emerson Electric Co. 131,900 7,963,463
Electronic Components &
Accessories (2.46%)
Advanced Micro Devices, Inc. 28,800(a) 2,224,800
Analog Devices, Inc. 31,000(a) 2,356,000
LSI Logic Corp. 46,200(a) 2,500,575
7,081,375
Fire, Marine & Casualty
Insurance (3.05%)
American International Group, Inc. 74,600 8,765,500
Forest Products (2.45%)
Weyerhaeuser Co. 164,100 7,056,300
Groceries & Related Products (1.68%)
SYSCO Corp. 114,400 4,819,100
Grocery Stores (1.18%)
Albertson's, Inc. 102,400 3,404,800
Highway & Street Construction (1.99%)
Halliburton Co. 121,500 5,733,281
Life Insurance (2.38%)
American General Corp. 112,300 6,850,300
Measuring & Controlling Devices (0.64%)
Teradyne, Inc. 25,100(a) 1,844,850
Miscellaneous Chemical Products (1.27%)
Du Pont (E. I.) De Nemours 83,300 3,644,375
Miscellaneous Converted Paper
Products (1.58%)
Minnesota Mining & Mfg. Co. 55,200 4,554,000
Miscellaneous Manufacturers (2.17%)
Tyco International Ltd. 131,700 6,239,288
Motor Vehicles & Equipment (0.72%)
General Motors Corp. 35,600 2,067,025
Paper Mills (2.49%)
Kimberly Clark Corp. 124,800 7,160,400
Petroleum Refining (5.91%)
Chevron Corp. 99,700 8,455,806
Exxon Mobil Corp. 108,900 8,548,650
17,004,456
Primary Non-Ferrous Metals (2.04%)
Alcoa, Inc. 202,300 5,866,700
Retail Stores, NEC (1.03%)
Costco Wholesale Corp. 90,000(a) 2,970,000
Savings Institutions (1.30%)
Citigroup, Inc. 62,100 3,741,525
Search & Navigation Equipment (0.98%)
Raytheon Co. 144,600 2,810,663
Security Brokers & Dealers (1.27%)
Morgan Stanley Dean Witter & Co. 43,800 3,646,350
Telephone Communication (8.25%)
AT&T Corp. 258,650 8,179,806
Alltel Corp. 69,200 4,286,075
Bell Atlantic Corp. 109,700 5,574,131
GTE Corp. 91,100 5,670,975
23,710,987
Total Common Stocks 284,188,502
Principal
Amount Value
Commercial Paper (2.89%)
Personal Credit Institutions (2.89%)
Investment in Joint Trading Account,
Associates First Capital Corp.;
6.89%; 7/3/2000 $8,316,373 $ 8,316,373
Total Porfolio Investments (101.72%) 292,504,875
Liabilities, net of cash and receivables (-1.72%) (4,958,340)
Total Net Assets $287,546,535
(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 (27.36%)
FHLMC 5.50% 3/1/2024 $ 227,852 $ 203,070
FHLMC 6.00 1/1/2009 - 1/1/2026 5,026,149 4,754,666
FHLMC 6.50 6/1/2018 - 12/1/2028 14,250,880 13,480,455
FHLMC 7.00 1/1/2024 - 8/1/2028 9,216,686 8,912,947
FHLMC 7.50 3/1/2023 72,772 71,692
FHLMC Gold 5.50 2/1/2024 859,651 763,875
FHLMC Gold 6.00 7/1/2009 1,762,498 1,693,007
FHLMC Gold 6.50 10/1/2025 -5/1/2026 1,151,503 1,090,986
FHLMC Gold 7.00 9/1/2023 - 12/1/2023 1,753,455 1,700,924
Total FHLMC Certificates 32,671,622
Federal National Mortgage Association (FNMA)
Certificates (17.08%)
FNMA 5.50 5/1/2024 966,899 860,097
FNMA 6.00 2/1/2009 - 11/1/2028 6,302,400 5,857,337
FNMA 6.50 11/1/2023 - 4/1/2029 9,590,808 9,066,246
FNMA 7.00 8/1/2023 - 11/1/2027 2,883,865 2,790,057
FNMA 7.50 4/1/2022 - 7/1/2027 822,732 814,901
FNMA 8.00 6/1/2030 1,000,000 1,004,458
Total FNMA Certificates 20,393,096
Government National Mortgage Association (GNMA)
Certificates (26.44%)
GNMA I 6.50 5/15/2026 - 8/15/2028 2,553,680 2,426,233
GNMA I 7.00 1/15/2024 - 5/15/2028 4,749,030 4,622,887
GNMA II 6.00 5/20/2024 - 7/20/2029 23,984,432 22,068,021
GNMA II 6.50 12/20/2025 - 2/20/2026 2,589,431 2,451,946
Total GNMA Certificates 31,569,087
Principal
Amount Value
Private Export Funding Corporation (PEFCO)
Certificates (13.45%)
Private Export Funding Corp.
Notes;
6.24%; 5/15/2002 $ 200,000 $ 197,679
7.01%; 4/30/2004 280,000 279,582
8.40%; 7/31/2001 1,300,000 1,319,599
Secured Notes;
6.62%;10/1/2005 2,200,000 2,160,092
6.67%; 9/15/2009 4,400,000 2,321,765
8.35%; 1/31/2001 1,000,000 1,008,440
Series KK, Senior Secured Notes;
8.75%; 6/30/2003 1,373,000 1,435,404
Series SS, Senior Secured Notes;
5.50%; 3/15/2001 3,375,000 3,343,906
5.80%; 2/1/2004 1,760,000 1,722,120
7.03%; 10/31/2003 2,275,000 2,274,349
Total PEFCO Certificates 16,062,936
Student Loan Marketing Association (SLMA)
Certificates (12.26%)
Student Loan Marketing Association
Debentures;
7.30%; 8/1/2012 $7,000,000 $ 7,077,868
8.47%; 12/1/2008 1,000,000 1,081,184
9.15%; 12/1/2004 1,200,000 1,293,998
Global Notes;
6.05%; 9/14/2000 1,790,000 1,787,335
Medium-Term Notes;
6.25%; 12/1/2008 1,100,000 1,036,676
Notes;
5.20%; 3/2/2001 500,000 494,807
6.13%; 12/1/2005 1,560,000 1,498,105
9.25%; 6/1/2004 350,000 375,792
Total SLMA Certificates 14,645,765
Federal Agency Short-Term Obligations (3.40%)
Federal & Federally Sponsored
Credit (3.40%)
Federal Home Loan Bank System,
Commercial Paper;
6.44%; 10/2/2000 1,000,000 983,363
Investment in Joint Trading Account,
Student Loan Marketing Association;
6.57%; 7/3/2000 3,079,886 3,078,762
Total Commercial Paper 4,062,125
Total Portfolio Investments (99.99%) 119,404,631
Cash and receivables, net of liabilities (0.01%) 11,201
Total Net Assets (100.00%) $119,415,832
GROWTH ACCOUNT
Shares
Held Value
Common Stocks (99.24%)
Accounting, Auditing &
Bookkeeping (3.09%)
Paychex, Inc. 253,950 $10,665,900
Advertising (1.81%)
TMP Worldwide, Inc. 84,666(a) 6,249,409
Cable & Other Pay TV Services (3.04%)
Comcast Corp. 259,100(a) 10,493,550
Commercial Banks (2.87%)
Fifth Third Bancorp. 55,000 3,478,750
State Street Corp. 60,500 6,416,781
9,895,531
Communications Equipment (8.00%)
Nortel Networks Corp. 276,400 18,864,300
Tellabs, Inc. 128,100(a) 8,766,844
27,631,144
Computer & Data Processing
Services (6.70%)
America Online, Inc. 63,800(a) 3,365,450
Microsoft Corp. 48,200(a) 3,856,000
Sun Microsystems, Inc. 174,900(a) 15,904,969
23,126,419
Computer & Office Equipment (16.08%)
Automatic Data Processing Services 122,900 6,582,831
Cisco Systems, Inc. 427,400(a) 27,166,612
EMC Corp. 180,000(a) 13,848,750
Gateway, Inc. 139,800(a) 7,933,650
55,531,843
Department Stores (2.84%)
Kohl's Corp. 176,400(a) 9,812,250
Drugs (8.86%)
Bristol-Myers Squibb Co. 134,400 7,828,800
Johnson & Johnson 21,400 2,180,125
Pfizer, Inc. 429,200 20,601,600
30,610,525
Electronic Components &
Accessories (12.88%)
Intel Corp. 135,800 18,154,762
JDS Uniphase Corp. 35,700(a) 4,279,538
Linear Technology Corp 81,400 5,204,513
Maxim Integrated Products, Inc. 151,200(a) 10,272,150
Texas Instruments, Inc. 95,600 6,566,525
44,477,488
Federal & Federally Sponsored
Credit (2.16%)
Federal National Mortgage Association142,900 7,457,594
Fire, Marine & Casualty
Insurance (3.45%)
American International Group, Inc. 101,550 11,932,125
Furniture & Home Furnishings
Stores (3.08%)
Bed Bath & Beyond, Inc. 293,000(a) 10,621,250
Groceries & Related Products (2.61%)
SYSCO Corp. 214,400 $ 9,031,600
Household Appliances (4.56%)
General Electric Co. 297,000 15,741,000
Lumber & Other Building
Materials (2.94%)
Home Depot, Inc. 203,300 10,152,294
Medical Instruments & Supplies (3.36%)
Guidant Corp. 234,500(a) 11,607,750
Miscellaneous Shopping Goods
Stores (0.75%)
Staples, Inc. 169,500(a) 2,606,062
Savings Institutions (4.28%)
Citigroup, Inc. 245,497 14,791,194
Telephone Communication (5.88%)
AT&T Corp. 78,752 2,490,532
BellSouth Corp. 117,800 5,021,225
Worldcom, Inc. 278,892(a) 12,794,171
20,305,928
Total Common Stocks 342,740,856
Principal
Amount Value
Commercial Paper (0.66%)
Personal Credit Institutions (0.66%)
Investment in Joint Trading Account,
Associates First Capital Corp.;
6.89%; 7/3/2000 $2,297,820 $ 2,297,820
Total Portfolio Investments (99.90%) 345,038,676
Cash, receivables and other assets,
net of liabilities (0.10%) 340,637
Total Net Assets (100.00%) $345,379,313
(a) Non-income producing security - No dividend paid during the past twelve
months.
HIGH YIELD ACCOUNT
Principal
Amount Value
Bonds (87.67%)
Advertising (3.75%)
Lamar Media Corp.
Senior Subordinated Notes;
9.63%; 12/1/2006 $500,000 $ 502,500
Blast Furnace & Basic Steel
Products (3.31%)
AK Steel Corp. Senior Notes;
7.88%; 2/15/2009 500,000 443,750
Communications Equipment (3.35%)
Century Communications Corp.
Senior Discount Notes;
1/15/2008 500,000(a) 205,000
Williams Communication Group, Inc.
Senior Notes; 10.88%; 10/1/2009 250,000 244,375
449,375
Communications Services, NEC (6.23%)
Charter Communications Holdings, LLC
Senior Discount Notes;
11.75%; 1/15/2010 500,000(a) 284,375
Level 3 Communications, Inc.
Senior Discount Notes; 3/15/2010 350,000(a)(b) 191,625
Senior Notes; 9.13%; 5/1/2008 400,000 359,000
835,000
Computer & Data Processing
Services (3.24%)
Globix, Inc. Senior Notes;
12.50%; 2/1/2010 250,000 205,000
PSINet, Inc. Senior Notes;
10.50%; 12/1/2006 250,000 230,000
435,000
Computer & Office Equipment (2.15%)
International Game Technology
Senior Notes; 7.88%; 5/15/2004 300,000 288,000
Crude Petroleum & Natural Gas (3.69%)
Chesapeake Energy Corp. Senior
Notes, Series A;
9.63%; 5/1/2005 250,000 242,500
Louis Dreyfus Natural Gas Co.
Senior Subordinated Notes;
9.25%; 6/15/2004 250,000 252,477
494,977
Electric Services (4.29%)
Calpine Corp. Senior Notes;
7.88%; 4/1/2008 500,000 476,875
York Power Funding Ltd.
Senior Secured Bonds;
12.00%; 10/30/2007 100,000(b) 98,000
574,875
Electronic Components &
Accessories (0.75%)
Flextronics International Ltd.
Senior Subordinated Notes;
9.88%; 7/1/2010 100,000(b) 100,750
Forest Products (2.89%)
Doman Industries Ltd. Senior Notes;
8.75%; 3/15/2004 500,000 387,500
Funeral Service & Crematories (3.20%)
Service Corp. International Notes;
6.75%; 6/1/2001 150,000 129,000
7.38%; 4/15/2004 500,000 300,000
429,000
Grocery Stores (2.08%)
Marsh Supermarkets, Inc.;
8.88%; 8/1/2007 300,000 279,000
Heavy Construction, Except
Highway (3.43%)
Mastec, Inc. Senior Subordinated
Notes; 7.75%; 2/1/2008 500,000 460,000
Hospitals (5.59%)
Iasis Healthcare Corp. Notes;
13.00%; 10/15/2009 500,000 497,500
Tenet Healthcare Corp. Senior Notes;
9.25%; 9/1/2010 250,000(b) 251,875
749,375
Hotels & Motels (5.42%)
HMH Properties, Inc. Senior Notes;
7.88%; 8/1/2005 500,000 462,500
John Q. Hammons Hotels LP &
Finance Corp. First Mortgage
Notes; 8.88%; 2/15/2004 300,000 264,000
726,500
Medical Service & Health
Insurance (1.29%)
Conseco, Inc. Notes;
8.75%; 2/9/2004 250,000 173,750
Miscellaneous Amusement,
Recreation Service (4.11%)
Park Place Entertainment Corp.
Senior Subordinated Notes,
9.38%; 2/15/2007 250,000 250,000
Station Casinos, Inc. Senior
Subordinated Notes,
9.88%; 7/1/2010 300,000(b) 300,750
550,750
Miscellaneous Plastics
Products, NEC (2.24%)
Tekni-Plex, Inc. Senior
Subordinated Notes;
12.75%; 6/15/2010 300,000(b) 300,000
Personal Credit Institutions (0.76%)
MacSaver Financial Services, Inc.
Notes; 7.60%; 8/1/2007 200,000 102,000
Public Building & Related
Furniture (1.75%)
Lear Corp. Senior Notes;
7.96%; 5/15/2005 250,000 234,993
Radio & Television
Broadcasting (0.68%)
Antenna TV S.A. Senior Notes;
9.00%; 8/1/2007 100,000 90,875
Residential Building
Construction (1.62%)
D.R. Horton, Inc. Senior Notes;
8.00%; 2/1/2009 250,000 217,500
Telephone Communication (15.45%)
Clearnet Communications, Inc.
Step-up Senior Discount Notes;
12/15/2005 250,000(a) 258,125
Covad Communications Group, Inc.
Senior Notes; 12.00%; 2/15/2010 250,000(b) 195,000
Global Crossing Holdings Ltd.
Senior Notes; 9.13%; 11/15/2006 500,000 478,750
Intermedia Communications, Inc.
Senior Notes; 8.50%; 1/15/2008 200,000 184,000
NEXTLINK Communications, Inc.
Senior Notes; 10.75%; 6/1/2009 200,000 197,000
Senior Notes; 10.50%; 12/1/2009 300,000(b) 292,500
Winstar Communications, Inc.
Senior Notes; 12.75%; 4/15/2010 500,000(b) 466,250
2,071,625
Water Supply (3.46%)
CE Casecnan Water & Energy Co., Inc.
Senior Notes; 11.45%; 11/15/2005 500,000(b) 465,000
Water Transportation of
Freight, NEC (2.94%)
Cenargo International PLC
First Mortgage Notes;
9.75%; 6/15/2008 500,000 395,000
Total Bonds 11,757,095
Shares
Held Value
Common Stocks (0.00%)
Communications Equipment (0.00%)
FWT, Inc. 3,733(c) $ 0
Computer & Data Processing
Services (0.00%)
DecisionOne Corp. - Common 1,166(c) 0
DecisionOne Corp. - Warrants,
Class A 684(c) 0
Class B 1,180(c) 0
Class C 700(c) 0
Total Common Stocks 0
Preferred Stocks (0.16%)
Communication Equipment (0.14%)
FWT, Inc. 37,333(c) 18,667
Fuel Dealers (0.02%)
Star Gas Partners LP 132 2,030
Total Preferred Stocks 20,697
Principal
Amount Value
Commercial Paper (4.79%)
Business Credit Institutions (3.58%)
American Express Credit Corp.;
6.70%; 7/5/2000 $480,000 $ 479,642
Personal Credit Institutions (1.21%)
Investment in Joint Trading Account,
Associates First Capital Corp.;
6.89%; 7/3/2000 162,837 162,837
Total Commercial Paper 642,479
Total Portfolio Investments (92.62%) 12,420,271
Cash and receivables, net of liabilities (7.38%) 990,314
Total Net Assets (100.00%) $13,410,585
(a) Non-income producing security - Zero-step coupon bond.
(b) Restricted security - See Note 4 to the financial statements.
(c) Non-income producing security - No dividend paid during the last twelve
months.
INTERNATIONAL ACCOUNT
Shares
Held Value
Common Stocks (94.69%)
Advertising (0.78%)
WPP Group PLC 113,100 $ 1,642,877
Agricultural Chemicals (0.51%)
Norsk Hydro ASA 25,300 1,065,580
Aircraft & Parts (0.78%)
Rolls-Royce PLC 455,900 1,630,568
Combination Utility Services (2.87%)
Alcatel Alsthom 91,500 6,025,744
Commercial Banks (9.33%)
Bank of Ireland 394,518 2,486,540
BNP Paribas 35,600 3,439,880
Deutsche Bank AG NPV 23,800 1,997,404
National Australia Bank Ltd. 118,386 1,983,027
Nordic Baltic Holding AB 569,709 4,319,558
Royal Bank of Canada Montreal, Quebec 37,000 1,891,617
San Paolo - IMI S.p.A ADR 106,400(a) 1,896,068
Sanwa Bank Ltd. 199,000 1,591,172
19,605,266
Communications Equipment (5.54%)
Siemens AG 27,000 4,058,286
Sony Corp. 23,000 2,152,072
Telefonaktiebolaget LM Ericsson,
Class I 272,800 5,427,557
11,637,915
Communications Services, NEC (2.28%)
Koninklijke KPN NV 78,600 3,529,921
Korea Telecom Corp. ADR 26,000 1,257,750
4,787,671
Computer & Data Processing
Services (2.04%)
Cap Gemini SA 8,000 1,414,879
Getronics NV 185,400 2,870,219
4,285,098
Computer & Office Equipment (7.20%)
Baltimore Technologies PLC 2,350(a) 17,966
Canon, Inc. 45,000 2,245,641
Compal Electronics, Inc. 329,398 807,479
Fujitsu Ltd. 67,000 2,323,992
NEC Corp. 130,000 4,091,489
Orbotech Ltd. ADR 20,000(a) 1,857,500
Toshiba Corp. 334,000 3,778,631
15,122,698
Concrete, Gypsum & Plaster
Products (1.00%)
Lafarge SA 26,900 2,098,986
Consumer Products (0.91%)
Swedish Match Co. 618,615 1,918,465
Crude Petroleum & Natural Gas (2.60%)
Total Fina Elf 35,433 $ 5,454,894
Dairy Products (1.54%)
Koninklijke Numico NV 23,556 1,122,252
Unilever NV 17,900 824,478
Unilever PLC 213,700 1,288,421
3,235,151
Drugs (4.19%)
AstraZeneca Group PLC 35,976 1,681,749
Novartis AG 1,878 2,984,353
Rhodia, Inc. SA 109,100 1,840,646
Taisho Pharmaceutical Co. 27,000 969,708
Takeda Chemical Industries 20,000 1,315,629
8,792,085
Drugs, Proprietaries & Sundries (1.67%)
Glaxo Wellcome PLC 120,300 3,505,855
Electronic Components &
Accessories (1.60%)
Murata Mfg. Co., Ltd. 5,000 719,248
Samsung Electronics 4,100 1,356,831
United Microelectronics Corp. 459,600(a) 1,275,879
3,351,958
Electronic Distribution Equipment (2.94%)
Koninklijke Philips Electronics 130,534 6,181,351
Family Clothing Stores (0.54%)
Fast Retailing Co., Ltd. 2,700 1,133,028
Finance Services (0.27%)
Takefuji Corp. 4,700 569,037
Fire, Marine & Casualty
Insurance (3.07%)
Royal & Sun Alliance Insurance
Group 472,000 3,052,964
Zurick Allied AG 6,858 3,399,340
6,452,304
Foreign Bank, Branches &
Agencies (1.29%)
UBS AG 18,390 2,702,973
Gas Production & Distribution (1.08%)
BG Group PLC 163,190 1,052,448
OMV AG 13,900 1,212,520
2,264,968
Heavy Construction,
Except Highway (1.63%)
Vivendi 38,700 3,429,657
Industrial Inorganic Chemicals (3.31%)
Aventis SA 94,959 6,958,994
Investment Offices (1.47%)
Amvescap PLC 194,800 3,098,008
Life Insurance (5.09%)
AXA ADR 35,120 5,554,837
ING Groep NV 75,800 5,144,407
10,699,244
Miscellaneous Business Services (1.19%)
Brisa-Auto Estradas De Portugal SA 290,000 2,507,479
Miscellaneous Investing (1.44%)
Investor AB, Class B 219,600 3,017,060
Miscellaneous Non-Durable Goods (1.99%)
Diageo PLC 467,205 4,183,693
Newspapers (3.51%)
News Corp. Ltd. ADR 75,500 4,114,750
Publishing & Broadcasting Ltd. 55,700 429,748
United News & Media PLC 196,200 2,821,761
7,366,259
Oil & Gas Field Services (0.62%)
Petroleum Geo-Services ASA 76,100(a) 1,304,323
Paperboard Containers & Boxes (1.19%)
Buhrmann NV 87,200 2,503,492
Periodicals (1.15%)
VNU NV 46,700 2,421,849
Petroleum Refining (2.61%)
BP Amoco PLC 571,000 5,480,535
Radio & Television Broadcasting (1.09%)
Carlton Communications PLC 178,198 2,291,732
Sanitary Services (1.25%)
Suez Lyonnaise des Eaux SA 14,900 2,620,929
Security Brokers & Dealer (0.70%)
Nikko Securities Co., Ltd. 149,000 1,478,664
Soap, Cleaners & Toilet Goods (0.93%)
Reckitt Benckiser, Inc. 176,645 1,962,886
Special Industry Machinery (0.18%)
Cookson Group 113,600 379,214
Telephone Communication (11.31%)
British Telecommunications PLC 182,700 2,362,077
Cable & Wireless PLC 168,600 2,863,835
DDI Corp. 146 1,407,495
Hellenic Telecom Organization SA ADR 106,000 1,291,875
Jazztel PLC ADR 922(a) 24,202
Nippon Telegraph and Telephone Corp. 86 1,146,071
Nokia Corp. ADR, Class A 89,200 4,454,425
Nokia OYJ 2,000 102,473
NTT DoCoMo, Inc. 48 1,302,018
Telecom Corp. of New Zealand Ltd. 741,000 2,598,778
Telefonica, SA 123,200(a) 2,657,211
Vodafone AirTouch PLC 875,832 3,540,215
23,750,675
Total Common Stocks 198,919,165
Preferred Stock (0.15%)
Commercial Banks (0.15%)
National Australia Bank ECU 11,500 325,594
Principal
Amount Value
Commercial Paper (4.77%)
Business Credit Institutions (2.44%)
American Express Credit Corp.;
6.78%; 7/5/00 $5,125,000 $ 5,121,139
Personal Credit Institutions (2.33%)
Ford Motor Credit Co.;
6.72%; 7/3/00 4,900,000 4,898,171
Total Commercial Paper 10,019,310
Total Portfolio Investments (99.61%) 209,264,069
Cash and receivables, net of liabilities (0.39%) 815,168
Total Net Assets (100.00%) $210,079,237
(a) Non-income producing security - No dividend paid during the period.
International Account
Investments by Country
Total Percentage of
Country Value Total Value
Australia $ 6,853,119 3.27%
Austria 1,212,520 0.58
Canada 1,891,617 0.90
Finland 4,556,898 2.18
France 38,839,445 18.56
Germany 6,055,690 2.89
Greece 1,291,875 0.62
Israel 1,857,500 0.89
Italy 1,896,068 0.91
Japan 26,223,893 12.53
Korea, Republic of 2,614,581 1.25
Netherlands 24,597,970 11.75
New Zealand 2,598,779 1.24
Norway 2,369,903 1.13
Portugal 2,507,479 1.20
Spain 2,657,211 1.27
Sweden 16,364,389 7.82
Switzerland 9,086,666 4.34
Taiwan, Province of China 2,083,358 1.00
United Kingdom 43,685,798 20.88
United States 10,019,310 4.79
Total $209,264,069 100.00%
INTERNATIONAL SMALLCAP ACCOUNT
Shares
Held Value
Common Stocks (87.83%)
Advertising (1.99%)
Mosaic Group, Inc. 69,064(a) $ 839,021
SR Teleperformance 8,658(a) 331,149
1,170,170
Agricultural Chemicals (0.70%)
Zeltia SA 6,800(a) 410,660
Air Transportation, Scheduled (1.48%)
Ryanair Holdings PLC ADR 11,151(a) 407,012
West Jet Airlines Ltd. 30,350(a) 460,882
867,894
Bakery Products (0.05%)
QAF 79,000 26,958
Beer, Wine & Distilled Beverages (1.33%)
Hite Brewery Co. Ltd. 17,800 782,225
Commercial Banks (1.10%)
HKCB Bank Holding Co. Ltd. 1,156,000(a) 333,663
Koram Bank 52,000(a) 314,791
648,454
Commercial Printing (1.38%)
Creo Products, Inc. 35,617(a) 810,287
Communications Equipment (3.60%)
Elcoteq Network Corp., Class A 36,600(a) 805,187
Gilat Satellite Networks 7,200(a) 499,500
Pandatel AG 5,015(a) 586,494
Telson Electronics Co. Ltd. 21,200 225,304
2,116,485
Communications Services, NEC (3.83%)
Eyretel PLC 411,700(a) 1,302,641
GT Group Telecom, Inc., Class B 34,700(a) 548,694
SwitchCore AB 38,100(a) 399,647
2,250,982
Computer & Data Processing
Services (11.78%)
AIT Group PLC 4,052 75,069
Articon Information Systems AG 5,500(a) 375,384
Baltimore Technologies PLC 6,074(a) 95,665
BioData Information Technology AG 1,640(a) 553,375
C.REL 53,000(a) 68,207
Computershare Ltd. 112,072 578,024
Cresco Ltd. 3,200 229,857
Dansk Data Electronik AS, Class B 460(a) 30,441
Enea Data AB 4,075 27,877
F-Secure OYJ 5,400(a) 62,686
Grenke Leasing 21,100(a) 663,421
Guardian IT PLC 16,600(a) 341,778
Lectra Systemes 10,376(a) 170,082
LPKF Laser & Electronics 2,700 723,400
Maxxcom 71,000(a) 383,351
META4 NV 7,983(a) 66,193
Morse Holdings PLC 96,500(a) 620,889
Orchestream Holdings PLC 124,100(a) 597,443
Parsytec AG NPV 1,800(a) 405,484
Tele Atlas BV 32,900(a) 482,525
Telecomputing ASA 27,510(a) 222,077
Telindus Group - Strip VVPR 500(a) 5
Via Net.Works, Inc. 8,200(a) 126,588
VISMA ASA 4,480(a) 22,800
6,922,621
Computer & Office Equipment (1.06%)
Venture Mfg. Ltd. 61,000 620,937
Construction & Related
Machinery (3.08%)
Gerberit AG-REG 1,200 402,198
Palfinger AG 8,600 216,402
Pinguely-Haulotte 28,698 599,710
Swisslog Holding AG 1,200 590,382
1,808,692
Crushed & Broken Stone (0.19%)
Brandrill Limited NV 188,911(a) 113,426
Deep Sea Foreign Transportation
of Freight (0.83%)
Frontline Ltd. 39,700(a) 487,689
Drugs (3.52%)
CSL Ltd. 42,232 837,667
FH Faulding & Co. Ltd. 91,900 451,582
Girindus AG 5,600(a) 175,537
Hisamitsu Pharmaceutical 30,000 462,455
Nippon Shinyaku Co. Ltd. 14,000 142,243
2,069,484
Eating & Drinking Places (0.61%)
Global-Dining, Inc. 300(a) 19,281
Matsuya Foods Ltd. 13,000 341,572
360,853
Electric Services (0.24%)
Energy Developments Ltd. 11,032 64,582
Vestas Wind Systems A/S 2,100 77,446
142,028
Electrical Industrial Apparatus (0.34%)
Kontron Embedded Computers AG 2,200(a) 200,345
Electrical Work (0.84%)
Bracknell Corp. 95,600(a) 477,462
International-Muller NV 1,003(a) 17,306
494,768
Electronic Components &
Accessories (7.58%)
C-MAC Industries, Inc. 14,100(a) 666,141
Chloride Group PLC 268,900 769,396
ELMOS Semiconductor AG 12,400 606,212
JIT Holdings Ltd. 301,000 525,749
Kinseki Ltd. 3,000 50,896
Micronic Laser Systems AB 24,000(a) 489,811
Nihon Denpa Kogyo Co. Ltd. 11,900(a) 618,591
Parthus Technologies 116,000(a) 333,664
SOITEC 930(a) 218,415
Toshiba Ceramics Co. Ltd. 21,000 175,852
4,454,727
Electronic Distribution
Equipment (1.29%)
Austria Technologie & Systemtechnik AG 7,500(a) $ 567,965
JOT Automation Group OYJ 28,700 192,306
760,271
Engineering & Architecture (1.20%)
FUGRO NV 12,304 704,721
Family Clothing Stores (1.00%)
Giordano International Ltd. 385,000 585,257
General Industrial Machinery (1.99%)
Koyo Seiko Co. Ltd. 41,000 356,892
Nippon Thompson Co. Ltd. 25,000 380,417
NTN Corp. 85,000 363,924
Whatman PLC 23,000 70,771
1,172,004
Industrial Inorganic Chemicals (0.21%)
Air Water, Inc. 28,000 125,174
Industrial Machinery, NEC (1.11%)
CKD Corp. 53,000 488,899
Vossloh AG 10,068 165,999
654,898
Investment Offices (0.20%)
C.I. Fund Mgmt., Inc. 6,300 119,268
Life Insurance (0.95%)
Industrial Alliance Life Insurance Co.33,700(a) 557,243
Machinery, Equipment &
Supplies (1.49%)
FKI PLC 221,100(a) 786,600
Geveke NV 1,950 91,593
878,193
Measuring & Controlling Devices (1.85%)
ERG Ltd. 113,100 880,761
Shimadzu Corp. 37,000(a) 205,973
1,086,734
Medical & Dental Laboratories (1.04%)
Unilabs AG 570(a) 613,444
Medical Instruments & Supplies (1.87%)
Cochlear Ltd. 63,700 1,099,901
Metal Forgings & Stampings (0.49%)
LPG Telecom Holding AB 10,550 288,688
Metalworking Machinery (0.32%)
Mikron Holding AG 251 185,392
Miscellaneous Amusement, Recreation
Services (2.33%)
Aristocrat Leisure Ltd. 223,772 759,119
Snai SPA 24,400(a) 610,468
1,369,587
Miscellaneous Business Services (0.31%)
GfK AG 3,700(a) 180,886
Miscellaneous Chemical Products (0.61%)
Nichias Corp. 89,000 355,815
Miscellaneous Electrical Equipment &
Supplies (1.17%)
Kaba Holding AG, Class B 440 568,243
Zen Research 51,800(a) 117,630
685,873
Miscellaneous Fabricated Metal
Products (0.79%)
Coflexip SA 3,800 462,615
Miscellaneous Primary Metal
Products (0.00%)
YBM Magnex International, Inc. 13,300(a) 90
Miscellaneous Transportation
Equipment (1.06%)
IFCO Systems NV 23,600(a) 624,387
Motion Picture Distribution &
Services (0.35%)
Studio Canal 19,031(a) 204,321
Motion Picture Production &
Services (1.48%)
Expand 2,320(a) 211,273
Hit Entertainment PLC 100,200 659,864
871,137
Motor Vehicles & Equipment (0.69%)
Torotrak PLC 69,500(a) 402,978
Motorcycles, Bicycles & Parts (0.67%)
Ducati Motor Holding SPA 152,000(a) 391,220
Non-Ferrous Rolling & Drawing (0.76%)
Draka Holdings NV 6,800 446,511
Office Furniture (0.70%)
Corporate Express Australia 114,107 411,073
Oil & Gas Field Services (1.26%)
TGS Nopec Geophysical Co. ASA 55,850(a) 741,621
Periodicals (1.16%)
Informa Group PLC 66,100 683,971
Personal Supply Services (0.53%)
Creyf's NV 6,300 167,887
Unique International NV 6,050 145,567
313,454
Photographic Equipment &
Supplies (1.59%)
Gretag Imaging Holding 600 115,863
Konica Corp. 96,000(a) 816,597
932,460
Pottery & Related Products (0.47%)
Maruwa Co. Ltd. 7,000 277,870
Professional & Commercial
Equipment (1.25%)
Azkoyen SA 71,719 504,618
Quality Healthcare Asia Ltd. 772,000(a) 227,778
732,396
INTERNATIONAL SMALLCAP ACCOUNT (Continued)
Shares
Held Value
Radio, Television & Computer
Stores (0.46%)
Yamada Denki Co. Ltd. 3,000 $ 269,647
Real Estate Operators &
Lessors (0.98%)
Boardwalk Equities, Inc. 60,900(a) 575,432
Refrigeration & Service
Machinery (1.43%)
Jenoptik AG 14,600 419,862
Munters AB 5,105 62,279
Wedeco AG Water Tech 9,510(a) 360,089
842,230
Research & Testing Services (1.26%)
Cambridge Antibody Technology Group 16,296(a) 737,649
Residential Building Construction (0.21%)
Urban Corp. 6,000 125,325
Security Brokers & Dealers (0.86%)
Kempen & Co. NV 4,600 231,499
Van Der Moolen Holdings 4,900 276,189
507,688
Special Industry Machinery (2.76%)
Chen Hsong Holdings Ltd. 534,000 86,999
Muehlbauer Holding AG 2,092 144,387
SEZ Holding AG 591 542,637
Suess Microtec AG 22,600(a) 849,234
1,623,257
Subdividers & Developers (0.65%)
Singapore Land Ltd. 179,000 380,983
Telephone Communication (1.49%)
AAPT Ltd. 36,700(a) 120,754
Cybertron Telekom AG 9,400(a) 221,664
Cybertron Telekom Rights 9,400(a) 0
Nera Telecommunications Ltd. 144,000 269,844
Versatel Telecom International NV 6,300(a) 265,721
877,983
Variety Stores (0.01%)
Thanks Japan Corp. 800 8,544
Total Common Stocks 51,627,876
Principal
Amount Value
Commercial Paper (14.20%)
Business Credit Institution (4.08%)
American Express Credit;
6.78%; 7/5/2000 $1,650,000 $ 1,648,757
6.78%; 7/7/2000 750,000 749,153
2,397,910
Commercial Banks (1.70%)
CITICORP;
6.68%; 7/11/2000 1,000,000 998,144
Principal
Amount Value
Production & Distribution (3.40%)
Indiana Gas Co., Inc.
6.77%; 7/5/2000 $2,000,000 $1,996,991
Personal Credit Institutions (5.02%)
Associates First Capital Corp.;
6.89%; 7/3/2000 2,000,000 1,999,234
Wells Fargo Financial;
6.75%; 7/6/2000 950,000 949,109
2,948,343
Total Commercial Paper 8,341,388
Total Portfolio Investments (102.03%) 59,969,264
Cash and receivables, net of liabilities (-2.03%) (1,193,030)
Total Net Assets (100.00%) $58,776,234
(a) Non-income producing security - No dividend paid during the period.
International SmallCap Account
Investments by Country
Total Percentage of
Country Value Total Value
Australia $5,316,891 8.87%
Austria 1,006,030 1.68
Belguim 167,892 0.28
Canada 5,437,871 9.07
Denmark 107,888 0.18
Finland 1,060,178 1.77
France 2,197,565 3.66
Germany 6,410,108 10.69
Hong Kong 1,233,696 2.06
Ireland 740,675 1.24
Israel 499,500 0.83
Italy 1,001,688 1.67
Japan 5,815,822 9.70
Korea, Republic of 1,322,320 2.20
Netherlands 3,412,608 5.69
Norway 1,542,393 2.57
Singapore 1,824,471 3.04
Spain 981,472 1.64
Sweden 1,268,303 2.11
Switzerland 3,018,159 5.03
United Kingdom 7,262,345 12.11
United States 8,341,389 13.91
Total $59,969,264 100.00%
LARGECAP GROWTH ACCOUNT
Shares
Held Value
Common Stocks (97.07%)
Beverages (1.30%)
Anheuser-Busch Cos., Inc. 1,375 $ 102,695
Cable & Other Pay TV Services (6.32%)
Cablevision Systems, Class A 2,325(a) 157,809
Comcast Corp. 8,485(a) 343,643
----------
501,452
Commercial Banks (2.52%)
Bank of New York Co., Inc. 4,300 199,950
Communications Equipment (0.80%)
Lucent Technologies, Inc. 1,070 63,398
Communications Services, NEC (2.65%)
Nextel Communications, Inc. 3,440(a) 210,485
Computer & Data Processing
Services (7.44%)
Microsoft Corp. 2,575(a) 206,000
Sun Microsystems, Inc. 3,100(a) 281,906
Verisign, Inc. 575(a) 101,488
----------
589,394
Computer & Office Equipment (9.39%)
Cisco Systems, Inc. 6,150(a) 390,909
Dell Computer Corp. 1,350(a) 66,572
EMC Corp. 3,730(a) 286,977
----------
744,458
Department Stores (0.90%)
Wal-Mart Stores, Inc. 1,235 71,167
Drugs (3.90%)
Genentech, Inc. 525(a) 90,300
Pfizer, Inc. 2,406 115,488
Schering-Plough Corp. 2,050 103,525
----------
309,313
Electric Services (2.38%)
Enron Corp. 2,925 188,662
Electronic Components &
Accessories (5.95%)
Linear Technology Corp. 5,250 335,672
Texas Instruments, Inc. 1,980 136,001
----------
471,673
Federal & Federally Sponsored
Credit (0.94%)
Federal National Mortgage Association 1,430 74,627
Hotels & Motels (2.47%)
MGM Grand, Inc. 6,090 195,640
Household Appliances (3.51%)
General Electric Co. 5,250 278,250
Lumber & Other Building
Materials (1.49%)
Home Depot, Inc. 2,362 $ 117,952
Measuring & Controlling Devices (1.08%)
PE Corp. - PE Biosystems Group 1,305 85,966
Miscellaneous Manufacturers (1.49%)
Tyco International Ltd. 2,500 118,438
Miscellaneous Shopping Goods
Stores (0.86%)
Staples, Inc. 4,440(a) 68,265
Motion Picture Production &
Services (10.81%)
AT&T Corp. - Liberty Media
Group, Class A 6,550(a) 158,837
Time Warner, Inc. 4,700 357,200
Viacom, Inc., Class B 5,000(a) 340,938
----------
856,975
Motor Vehicles & Equipment (1.16%)
General Motors Corp., Class H 1,050(a) 92,138
Personal Credit Institutions (2.08%)
American Express Co. 3,165 164,976
Radio & Television Broadcasting (1.56%)
Grupo Televisa SA GDR 1,800(a) 124,088
Retail Stores, NEC (0.84%)
Costco Wholesale Corp. 2,025(a) 66,825
Savings Institutions (1.84%)
Citigroup, Inc. 2,412 145,323
Security Brokers & Dealers (3.86%)
Charles Schwab Corp. 2,850 95,832
Morgan Stanley Dean Witter & Co. 2,525 210,206
----------
306,038
Soap, Cleaners & Toilet Goods (0.60%)
Colgate-Palmolive Co. 800 47,900
Special Industry Machinery (6.45%)
ASM Lithography Holdings NV 5,375(a) 237,172
Applied Materials, Inc. 3,025(a) 274,141
----------
511,313
Telephone Communication (11.92%)
Nokia Corp. ADR, Class A 9,300 464,418
Sprint PCS Group 3,780(a) 224,910
Telefonica SA ADR 2,345(a) 150,227
Vodafone AirTouch PLC ADR 2,550 105,666
----------
945,221
Water Transportation of
Passengers (0.56%)
Carnival Corp. 2,275 44,363
----------
Total Portfolio Investments (97.07%) 7,696,945
Cash and receivables, net of liabilities (2.93%) 232,160
----------
Total Net Assets (100.00%) $7,929,105
----------
(a) Non-income producing security - No dividend paid during the past twelve
months.
MICROCAP ACCOUNT
Shares
Held Value
Common Stocks (95.11%)
Agricultural Chemicals (1.46%)
Agrium, Inc. 8,600 $ 74,175
IMC Global Group Inc. 3,900 50,700
----------
124,875
Beverages (0.79%)
American National Can Group, Inc. 4,000 67,500
Blast Furnace & Basic Steel
Products (0.63%)
Titan International, Inc. 10,100 53,656
Broadwoven Fabric Mills, Cotton (0.61%)
Burlington Industries, Inc. 30,700(a) 51,806
Colleges & Universities (1.48%)
Career Education Corp. 2,600(a) 126,100
Commercial Banks (4.02%)
Colonial Bancgroup, Inc. 9,600 92,400
Community First Bankshare, Inc. 4,900 79,931
Pacific Century Financial Corp. 6,000 87,750
Susquehana Bancshares 5,800 82,650
----------
342,731
Communications Equipment (0.36%)
Standard Microsystems Corp. 2,000(a) 30,750
Computer & Data Processing
Services (2.80%)
Avant Corp. 2,500(a) 46,836
Caminus Corp. 1,100(a) 26,950
GTECH Holdings Corp. 1,400(a) 31,762
Mentor Graphics Corp. 6,700(a) 133,163
----------
238,711
Computer & Office Equipment (1.40%)
Valmont Industries, Inc. 6,000 119,250
Crude Petroleum & Natural Gas (1.54%)
Louis Dreyfus Natural Gas Corp. 1,400(a) 43,837
Swift Energy Co. 3,100(a) 87,963
----------
131,800
Deep Sea Foreign Transportation of
Freight (1.66%)
Teekay Shipping Corp. 4,300 141,363
Department Stores (1.38%)
Venator Group, Inc. 11,500(a) 117,875
Drugs (0.26%)
KOS Pharmaceutical, Inc. 1,400(a) 22,488
Eating & Drinking Places (4.20%)
CBRL Group, Inc. 12,400 182,125
Morton's Restaurant Group, Inc. 8,200(a) 176,300
----------
358,425
Electric Services (4.07%)
Bangor Hydro-Electric Co. 8,400 196,875
Idacorp, Inc. 900 29,025
Public Service Co. of New Mexico 7,900 121,956
----------
347,856
Electrical Goods (1.43%)
Pioneer Standard Electronics, Inc. 8,300 $ 122,425
Electrical Industrial Apparatus (0.84%)
UCAR International, Inc. 5,500(a) 71,844
Electronic Components &
Accessories (2.97%)
General Semiconductors, Inc. 11,700(a) 172,575
MEMC Electronic Materials, Inc. 4,500(a) 81,000
----------
253,575
Elementary & Secondary School (1.83%)
ITT Educational Services 8,900(a) 156,306
Farm & Garden Machinery (1.65%)
AGCO Corp. 11,500 140,875
Fire, Marine & Casualty
Insurance (4.38%)
IPC Holdings Ltd. 3,900 54,600
PXRE Group Ltd. 11,700 157,950
Zenith National Insurance Corp. 7,600 161,500
----------
374,050
Freight Transportation
Arrangement (0.75%)
Hub Group, Inc., Class A 4,300(a) 64,231
Gas Production & Distribution (1.30%)
Laclede Gas Co. 3,000 57,750
Vectren Corp. 3,100 53,475
----------
111,225
Groceries & Related Products (1.58%)
Fleming Cos., Inc. 10,300 134,544
Health & Allied Services, NEC (0.42%)
Radiologix, Inc. 10,100(a) 35,981
Heavy Construction, Except
Highway (0.47%)
Morrison Knudsen Corp. 5,500(a) 39,875
Industrial Inorganic Chemicals (0.03%)
Tetra Technologies, Inc. 200(a) 2,837
Industrial Machinery, NEC (2.04%)
Denison International PLC 13,800(a) 174,225
Industrial Organic Chemicals (2.57%)
Lubrizol Corp. 1,800 37,800
Methanex Corp. 53,200(a) 181,212
----------
219,012
Insurance Agents, Brokers &
Services (0.79%)
Brown & Brown, Inc. 1,300 67,600
Investment Offices (0.30%)
Allied Capital Corp. 1,500 25,500
Life Insurance (0.18%)
Liberty Financial Cos., Inc. 700 15,356
Mailing, Reproduction,
Stenographic (1.97%)
Advo, Inc. 4,000(a) 168,000
Medical Instruments & Supplies (2.41%)
Haemonetics Corp. 9,800(a) $ 205,800
Medical Service & Health
Insurance (1.08%)
Foundation Health Systems,
Inc., Class A 7,100(a) 92,300
Men's & Boys' Furnishings (0.84%)
Tropical Sportswear
International Corp. 4,100(a) 71,750
Metals & Minerals, Except
Petroleum (0.03%)
Commercial Metals Co. 100 2,750
Miscellaneous Chemical Products (1.16%)
Millenium Chemicals, Inc. 5,800 98,600
Miscellaneous Durable Goods (0.14%)
Boyds Collection, Ltd. 1,400(a) 11,900
Miscellaneous Investing (6.28%)
Alexandria Real Estate 2,100 72,056
AvalonBay Communities, Inc. 800 33,400
Centerpoint Properties Corp. 1,300 52,975
Charles E. Smith Residential
Realty, Inc. 1,100 41,800
Cousins Properties, Inc. 1,400 53,900
Health Care Property Investors, Inc. 2,200 59,950
Liberty Property Trust 1,200 31,125
Parkway Properties Trust 100 3,050
Prentiss Property Trust 4,300 103,200
Reckson Associates Realty Corp. 2,200 52,250
Storage USA, Inc. 1,100 32,450
----------
536,156
Miscellaneous Manufacturers (1.68%)
Lydall, Inc. 13,500(a) 143,437
Miscellaneous Textile Goods (1.38%)
Belden, Inc. 4,600 117,875
New & Used Car Dealers (0.94%)
Lithia Motors, Inc. 6,000(a) 80,250
Newspapers (2.12%)
Lee Enterprises, Inc. 3,600 83,925
Media General, Inc., Class A 2,000 97,125
----------
181,050
Non-Ferrous Foundries (Casting) (1.83%)
Wolverine Tube, Inc. 9,200(a) 156,400
Nursing & Personal Care Facilities (2.10%)
Beverly Enterprises, Inc. 47,200(a) 132,750
Manor Care, Inc. 6,600(a) 46,200
----------
178,950
Oil & Gas Field Services (1.57%)
Cal Dive International, Inc. 600(a) 32,513
Coflexip ADR 1,000 60,500
Stolt Comex Seaway SA 2,900(a) 40,963
----------
133,976
Paperboard Mills (0.83%)
Caraustar Industries, Inc. 3,500 $ 52,938
Packaging Corp. of America 1,800(a) 18,225
----------
71,163
Personnel Supply Services (0.33%)
Modis Professional Services, Inc. 3,200(a) 28,400
Petroleum Refining (1.00%)
Valero Energy Corp. 2,700 85,725
Professional & Commercial
Equipment (1.53%)
Tech Data Corp. 3,000(a) 130,688
Real Estate Operators & Lessors (3.53%)
Catellus Development Corp. 7,900(a) 118,500
Insignia/ESG Holdings, Inc. 4,966(a) 49,660
LNR Property Corp. 3,200 62,400
Trammell Crow Co. 6,600(a) 70,950
----------
301,510
Residential Building Construction (0.19%)
D. R. Horton, Inc. 1,200 16,275
Retail Stores, NEC (0.93%)
Brookstone, Inc. 8,300(a) 79,628
Savings Institutions (1.10%)
Sovereign Bancorp, Inc. 13,300 93,516
Secondary Non-Ferrous Metals (0.45%)
Ispat International NV 4,000 38,000
Security & Commodity Services (1.43%)
BlackRock, Inc. 4,200(a) 121,800
Special Industry Machinery (2.70%)
Milacron, Inc. 8,900 129,050
Unova, Inc. 5,300(a) 38,756
Varian Medical Systems, Inc. 1,600(a) 62,600
----------
230,406
Surety Insurance (0.54%)
Old Republic International Corp. 2,800 46,200
Telephone Communication (0.41%)
Brightpoint, Inc. 4,000(a) 34,625
Trucking & Courier Services,
Except Air (1.40%)
Landstar Sytem, Inc. 2,000(a) 119,125
Variety Stores (0.95%)
ShopKo Stores, Inc. 5,300(a) 81,488
Watches, Clocks, Watchcases &
Parts (2.07%)
Movado Group, Inc. 14,700 176,400
----------
Total Portfolio Investments (95.11%) 8,118,790
Cash and receivables, net of liabilities (4.89%) 417,675
----------
Total Net Assets (100.00%) $8,536,465
----------
(a) Non-income producing security - No dividend paid during the past twelve
months.
MIDCAP ACCOUNT
Shares
Held Value
Common Stocks (96.13%)
Accounting, Auditing, &
Bookeeping (2.29%)
Paychex, Inc. 143,775 $ 6,038,550
Cable & Other Pay TV Services (0.24%)
Mediacom Comm. Corp. 41,000(a) 630,375
Combination Utility Services (0.44%)
Montana Power Co. 33,000 1,165,313
Commercial Banks (3.66%)
Associated Bancorp. 78,191 1,705,541
North Fork Bancorp., Inc. 195,420 2,955,728
State Street Corp. 47,000 4,984,938
----------
9,646,207
Communications Equipment (3.66%)
Comverse Technology, Inc. 90,000(a) 8,370,000
Metricom, Inc. 46,000(a) 1,282,250
----------
9,652,250
Communications Services, NEC (1.52%)
Leap Wireless International, Inc. 85,500(a) 4,018,500
Computer & Data Processing
Services (18.36%)
At Home Corp. 174,000(a) 3,610,500
BMC Software, Inc. 78,000(a) 2,845,781
Brocade Communications Systems, Inc. 37,500(a) 6,880,664
Cadence Design Systems, Inc. 93,400(a) 1,903,025
Citrix Systems, Inc. 43,500(a) 823,781
Data Return Corp. 36,100(a) 1,046,900
Digex, Inc. 76,000(a) 5,163,250
Entrust Technologies, Inc. 41,500(a) 3,434,125
IMS Health, Inc. 258,400 4,651,200
Intuit Inc. 112,500(a) 4,654,687
Sungard Data Systems, Inc. 86,900(a) 2,693,900
Symantec Corp. 55,000(a) 2,966,562
Veritas Software Corp. 68,600(a) 7,752,872
----------
48,427,247
Computer & Office Equipment (1.05%)
Lexmark International Group, Inc. 41,000(a) 2,757,250
Crude Petroleum & Natural Gas (2.93%)
Devon Energy Corp. 80,600 4,528,713
Newfield Exploration Co. 82,000(a) 3,208,250
----------
7,736,963
Drugs (7.21%)
BioChem Pharma, Inc. 77,000(a) 1,896,125
Forest Laboratories, Inc. 32,500(a) 3,282,500
Genzyme Corp. 106,860(a) 6,351,491
Medimmune Inc. 34,500(a) 2,553,000
Watson Pharmaceuticals, Inc. 92,000(a) 4,945,000
----------
19,028,116
Electrical Industrial Apparatus (1.49%)
American Power Conversion 96,500(a) 3,938,406
Electronic Components &
Accessories (11.74%)
Adaptec, Inc. 125,000(a) $ 2,843,750
Cobalt Networks, Inc. 26,291(a) 1,521,592
Flextronics International, Ltd. 25,504(a) 1,751,806
Integrated Device Technology, Inc. 45,000(a) 2,694,375
JDS Uniphase Corp. 28,600 3,428,425
Jabil Circuit Inc. 143,600(a) 7,126,150
Novellus Systems Inc. 63,000(a) 3,563,438
QLogic Corp. 61,000(a) 4,029,813
Sanmina Corp. 47,000(a) 4,018,500
----------
30,977,849
Fabricated Rubber Product, NEC (0.41%)
Weatherford International 27,200(a) 1,082,900
General Industrial Machinery (0.78%)
Pentair, Inc. 58,000 2,059,000
Hose, Belting, Gaskets & Packing (0.00%)
Mark IV Industries 1 21
Hospitals (1.12%)
Universal Health Services, Inc., Class B44,800(a) 2,956,800
Hotels & Motels (4.20%)
Four Seasons Hotel, Inc. 85,400 5,310,813
Marriott International, Inc., Class A159,700 5,759,181
----------
11,069,994
Household Appliance Store (1.22%)
Williams Sonoma Inc. 99,000(a) 3,211,313
Investment Offices (1.13%)
Amvescap PLC Sponsored ADR 38,020 2,979,818
Measuring & Controlling Devices (4.23%)
ISCO, Inc. 1(a) 2
Millipore Corp. 74,700 5,630,512
Roper Industries, Inc. 103,100 2,641,937
Teradyne, Inc. 39,200(a) 2,881,200
----------
11,153,651
Medical Instruments & Supplies (2.44%)
Guidant Corp. 130,000(a) 6,435,000
Medical Services & Health
Insurance (0.82%)
AFLAC Inc. 47,000 2,159,062
Miscellaneous Business Services (3.20%)
Cendant Corp. 201,000(a) 2,814,000
Convergys Corp. 108,700(a) 5,638,813
----------
8,452,813
Miscellaneous Personal Services (0.32%)
H&R Block, Inc. 26,000 841,750
Miscellaneous Shopping Goods
Stores (1.07%)
Staples, Inc. 184,000 2,829,000
Non-Classifiable Establishments (1.90%)
S&P 400 Midcap Depository Receipts 56,370 5,002,837
Periodicals (0.34%)
Primedia Inc. 40,000(a) 910,000
Radio & Television Broadcasting (0.97%)
USA Networks, Inc. 118,000(a) $ 2,551,750
Savings Institutions (2.10%)
TCF Financial Corp. 215,400 5,533,087
Search & Navigation Equipment (1.05%)
SCI Systems, Inc. 71,000(a) 2,782,312
Security Brokers & Dealers (1.78%)
Lehman Brothers Holdings, Inc. 40,000 3,782,500
WIT Soundview Group, Inc. 85,000(a) 912,422
----------
4,694,922
Telephone Communication (10.57%)
Broadwing, Inc. 107,900(a) 2,798,656
Dobson Communications Corp. A 67,000(a) 1,289,750
Global Crossing Ltd. 114,848 3,021,938
Intermedia Communications, Inc. 120,800(a) 3,593,800
McLeodUSA, Inc. 281,975(a) 5,833,358
NEXTLINK Communications 33,542(a) 1,272,500
RCN Corp. 67,800(a) 1,720,425
Telephone and Data System 49,500 4,962,375
Western Wireless Corp., Class A 62,000(a) 3,379,000
----------
27,871,802
Variety Stores (1.89%)
Family Dollar Stores 254,600 4,980,612
----------
Total Common Stocks 253,575,470
Principal
Amount Value
Commercial Paper (3.63%)
Personal Credit Institutions (3.63%)
Investment in Joint Trading Account,
Associates First Capital Corp.;
6.89%; 7/3/2000 $9,575,038 $ 9,575,038
----------
Total Portfolio Investments (99.76%) 263,150,508
Cash and receivables, net of liabilities (0.24%) $ 645,499
----------
Total Net Assets (100.00%) $263,796,007
----------
(a) Non-income producing security - No dividend paid during the past twelve
months.
MIDCAP GROWTH ACCOUNT
Shares
Held Value
Common Stocks (97.29%)
Advertising (1.75%)
TMP Worldwide, Inc. 1,700(a) $ 125,481
True North Communications 2,100 92,400
Young & Rubicam, Inc. 2,100 120,094
----------
337,975
Air Transportation, Scheduled (0.30%)
UAL Corp. 1,000 58,187
Automotive Rentals, No Drivers (0.49%)
Hertz Corp., Inc. 3,400 95,412
Beverages (0.36%)
Pepsi Bottling Group, Inc. 2,400 70,050
Cement, Hydraulic (0.14%)
Centex Construction Products 1,200 27,225
Colleges & Universities (0.63%)
Devry, Inc. 4,600(a) 121,612
Combination Utility Services (1.77%)
Constellation Energy Group, Inc. 5,000 162,812
KeySpan Corp. 3,900 119,925
Northern States Power Co. 2,950 59,553
----------
342,290
Commercial Banks (3.93%)
Associated Bancorp. 2,750 59,984
City National Corp. 4,100 145,550
Cullen/Frost Bankers, Inc. 2,850 74,991
Mercantile Bankshares Corp. 4,100 122,231
North Fork Bancorp., Inc. 7,300 110,412
Pacific Century Financial Corp. 6,000 87,750
Union Planters Corp. 3,800 106,162
Unionbancal Corp. 2,900 53,831
----------
760,911
Communications Equipment (2.24%)
Ciena Corp. 1,100(a) 183,356
Powerwave Technologies, Inc. 2,800(a) 123,200
Sawtek, Inc. 2,200(a) 126,637
----------
433,193
Computer & Data Processing
Services (8.76%)
BEA Systems, Inc. 1,400(a) 69,213
DST Systems, Inc. 2,500(a) 190,313
Intuit, Inc. 6,500(a) 268,938
IXL Enterprises, Inc. 1,300(a) 18,850
Portal Software, Inc. 2,300(a) 146,913
Proxicom, Inc. 2,700(a) 129,263
Rational Software Corp. 2,100(a) 195,169
Scient Corp. 1,250(a) 55,156
Sungard Data Systems, Inc. 5,200(a) 161,200
Sybase, Inc. 5,450(a) 125,350
Symantec Corp. 3,000(a) 161,812
Synopsys, Inc. 2,800(a) 96,775
Vignette Corp. 1,500(a) 78,023
----------
1,696,975
Computer & Office Equipment (0.90%)
Digital Lightwave, Inc. 1,000(a) $ 100,500
Sandisk Corp. 1,200(a) 73,425
----------
173,925
Crude Petroleum & Natural Gas (1.26%)
Equitable Resources, Inc. 3,200 154,400
Noble Affiliates, Inc. 2,400 89,400
----------
243,800
Department Stores (0.90%)
BJ's Wholesale Club, Inc. 5,300(a) 174,900
Drugs (6.46%)
Andrx Corp. 1,700(a) 108,667
Chiron Corp. 4,600(a) 218,500
Forest Laboratories, Inc. 1,050(a) 106,050
IVAX Corp. 10,600(a) 439,900
Medimmune, Inc. 3,300(a) 244,200
Millenium Pharmaceuticals 1,200(a) 134,250
----------
1,251,567
Eating & Drinking Places (0.96%)
Brinker International, Inc. 3,500(a) 102,375
Darden Restaurants, Inc. 5,100 82,875
----------
185,250
Electric Services (4.70%)
Allegheny Energy 6,200 169,725
DTE Energy Co. 3,800 116,137
Energy East Corp. 5,400 102,937
GPU, Inc. 3,300 89,306
NStar 4,000 162,750
OGE Energy Corp. 6,500 120,250
Pinnacle West Capital Corp. 2,600 88,075
Teco Energy, Inc. 3,050 61,191
----------
910,371
Electrical Goods (0.55%)
Avnet, Inc. 1,800 106,650
Electrical Industrial Apparatus (0.51%)
American Power Conversion 2,400(a) 97,950
Electrical Work (1.05%)
Quanta Services, Inc. 3,700(a) 203,500
Electronic Components &
Accessories (9.59%)
Cypress Semiconductor Corp. 3,300(a) 139,425
Helix Technology Corp. 2,100 81,900
Jabil Circuit, Inc. 3,500(a) 173,687
Lattice Semiconductor Corp. 1,250(a) 86,406
Microchip Technology, Inc. 3,300(a) 192,277
Novellus Systems, Inc. 2,950(a) 166,859
Power-One, Inc. 1,000(a) 113,937
Sanmina Corp. 2,300(a) 196,650
SDL, Inc. 500(a) 142,594
Semtech Corp. 1,500(a) 114,727
Transwitch Corp. 1,000(a) 77,187
Varian Semiconductor Equipment
Associates, Inc. 1,400(a) 87,937
Vishay Intertechnology, Inc. 4,350(a) 165,028
Vitesse Semiconductor Corp. 1,600(a) 117,700
----------
1,856,314
Engines & Turbines (0.33%)
Briggs & Stratton Corp. 1,850 63,362
Family Clothing Stores (1.44%)
Ross Stores, Inc. 8,800 $ 150,150
TJX Cos., Inc. 6,900 129,375
----------
279,525
Gas Production & Distribution (2.33%)
Dynegy, Inc. 3,700 252,756
Peoples Energy Corp. 3,600 116,550
Questar Corp. 4,200 81,375
----------
450,681
Groceries & Related Products (0.33%)
SUPERVALU, Inc. 3,300 62,906
Health & Allied Services, NEC (0.37%)
Lincare Holdings, Inc. 2,900(a) 71,412
Hospitals (0.85%)
Universal Health Services, Inc.,
Class B 2,500(a) 165,000
Hotels & Motels (0.76%)
MGM Grand, Inc. 4,600 147,775
Household Furniture (0.34%)
Leggett & Platt, Inc. 3,950 65,175
Industrial Inorganic Chemicals (0.49%)
Eastman Chemical Co. 2,000 95,500
Industrial Machinery, NEC (0.32%)
Parker-Hannifin Corp. 1,800 61,650
Insurance Agents, Brokers &
Services (0.69%)
Gallagher (Arthur J) & Co. 3,200 134,400
Life Insurance (0.48%)
Nationwide Financial Services 2,850 93,694
Management & Public Relations (0.23%)
Marchfirst, Inc. 2,412(a) 44,019
Measuring & Controlling Devices (3.16%)
Allergan, Inc. 2,400 178,800
Credence Systems Corp. 1,400(a) 77,263
Cytyc Corp. 2,000(a) 106,750
Johnson Controls, Inc. 1,950 100,059
Waters Corp. 1,200(a) 149,775
----------
612,647
Meat Products (0.45%)
Hormel Foods Corp. 5,200 87,425
Medical & Dental Laboratories (0.89%)
Quest Diagnostics, Inc. 2,400(a) 171,750
Medical Instruments & Supplies (1.22%)
Biomet, Inc. 3,750 144,141
Stryker Corp. 2,100 91,875
----------
236,016
Medical Service & Health
Insurance (0.45%)
Trigon Healthcare, Inc. 1,700(a) 87,656
Millwork, Plywood & Structural
Members (0.50%)
Georgia-Pacific Group. 3,700 $ 97,125
Miscellaneous Amusement,
Recreation (0.34%)
Park Place Entertainment 5,400(a) 65,813
Miscellaneous Business Services (2.66%)
Atmel Corp. 3,800(a) 140,125
Convergys Corp. 2,500(a) 129,688
Nova Corp. 2,900(a) 81,019
Viad Corp. 6,000 163,500
----------
514,332
Miscellaneous Electrical Equipment &
Supplies (1.12%)
Nvidia Corp. 3,400(a) 216,113
Miscellaneous Food & Kindred
Products (0.45%)
McCormick & Co. 2,700 87,750
Miscellaneous Manufacturers (0.49%)
Blyth, Inc. 3,200 94,400
Miscellaneous Plastics Products,
NEC (0.57%)
Sealed Air Corp. 2,100(a) 109,988
Miscellaneous Shopping Goods
Stores (1.90%)
Dollar Tree Stores, Inc. 6,150(a) 243,309
Zale Corp. 3,400(a) 124,100
----------
367,409
Motion Picture Distribution &
Services (0.43%)
MacroVision Corp. 1,300(a) 83,098
Motor Vehicles & Equipment (0.27%)
Navistar International Corp. 1,700(a) 52,806
Newspapers (1.67%)
A.H. Belo Corp. 4,000 69,250
Dow Jones & Co., Inc. 1,250 91,563
Knight-Ridder, Inc. 1,450 77,122
Pulitzer, Inc. 800 33,750
The McClatchy Co., Class A 1,550 51,344
----------
323,029
Office Furniture (0.37%)
Herman Miller, Inc. 2,750 71,156
Oil & Gas Field Services (4.78%)
BJ Services Co. 3,300(a) 206,250
Ensco International, Inc. 5,700 204,131
Noble Drilling Corp. 4,400(a) 181,225
Rowan Cos., Inc. 3,900(a) 118,463
Santa Fe International Corp. 2,600 90,838
Ultramar Diamond Shamrock Corp. 5,000 124,063
----------
924,970
Operative Builders (0.30%)
Centex Corp. 2,500 58,750
Opthalmic Goods (0.32%)
Bausch & Lomb, Inc. 800 61,900
Paints & Allied Products (0.68%)
Sherwin-Williams Co. 6,200 $ 131,363
Personal Credit Institutions (0.86%)
Metris Companies, Inc. 6,600 165,825
Personnel Supply Services (0.87%)
Robert Half International, Inc. 5,900(a) 168,150
Petroleum Refining (1.96%)
Amerada Hess Corp. 2,500 154,375
Lyondell Petrochemical Co. 5,300 88,775
Murphy Oil Corp. 2,300 136,706
----------
379,856
Plastic Materials & Synthetics (0.47%)
Cytec Industries, Inc. 3,650(a) 90,109
Preserved Fruits & Vegetables (0.29%)
Lancaster Colony 2,850 55,575
Primary Non-Ferrous Metals (0.78%)
Engelhard Corp. 4,300 73,369
Phelps Dodge Corp. 2,100 78,094
----------
151,463
Producers, Orchestras &
Entertainers (0.41%)
Westwood One, Inc. 2,300(a) 78,488
Professional & Commercial
Equipment (0.78%)
Patterson Dental Co. 900(a) 45,900
Tech Data Corp. 2,400(a) 104,550
----------
150,450
Radio & Television Broadcasting (1.73%)
Fox Entertainment Group, Inc. 4,300(a) 130,613
Hispanic Broadcasting Corp. 2,400(a) 79,500
Univision Communications, Inc. 1,200(a) 124,200
----------
334,313
Railroads (0.82%)
Kansas City Southern Industries, Inc. 1,800 159,638
Savings Institutions (1.01%)
Dime Bancorp, Inc. 4,400 69,300
Golden West Financial Corp. 3,100 126,519
----------
195,819
Sawmills & Planning Mills (0.31%)
Louisiana Pacific Corp. 5,600 60,900
Security & Commodity Services (0.83%)
Price (T. Rowe) Associates, Inc. 3,800 161,500
Security Brokers & Dealers (0.98%)
Edwards (A.G.), Inc. 3,500 136,500
Paine Webber Group, Inc. 1,150 52,325
----------
188,825
Ship & Boat Building &
Repairing (0.24%)
Brunswick Corp. 2,850 $ 47,203
Soap, Cleaners & Toilet Goods (0.18%)
Dial Corp. 3,350 34,756
Special Industry Machinery (0.46%)
Kulicke & Soffa Industry, Inc. 1,500(a) 89,063
Sugar & Confectionery Products (0.68%)
Wrigley (Wm.) Jr. Co. 1,650 132,309
Surety Insurance (1.53%)
Radian Group, Inc. 2,600 134,550
The PMI Group, Inc. 3,400 161,500
----------
296,050
Telephone Communication (1.67%)
Illuminet Holdings, Inc. 1,300(a) 66,138
ITXC Corp. 2,600(a) 92,056
Telephone & Data Systems, Inc. 950 95,238
United States Cellular Corp. 1,100(a) 69,300
----------
322,732
Trucking & Courier Services, Except
Air (0.82%)
CNF Transportation, Inc. 1,450 32,988
United Parcel Service, Inc., Class B 1,450 85,550
US Freightways Corp. 1,650 40,528
----------
159,066
Women's & Misses' Outerwear (0.40%)
Liz Claiborne, Inc. 2,200 77,550
----------
Total Portfolio Investments (97.29%) 18,838,292
Liabilities, net of cash and receivables (2.71%) 525,671
----------
Total Net Assets (100.00%) $19,363,963
----------
(a) Non-income producing security - No dividend paid during the past twelve
months.
MIDCAP VALUE ACCOUNT
Shares
Held Value
Common Stocks (98.28%)
Air Transportation, Scheduled (2.21%)
Continental Airlines, Inc. 1,700(a) $ 79,900
Southwest Airlines Co. 3,100 58,706
----------
138,606
Aircraft & Parts (1.91%)
General Dynamics Corp. 2,300 120,175
Bakery Products (1.34%)
Nabisco Holdings, Class A 1,600 84,000
Business Credit Institutions (1.29%)
Providian Financial Corp. 900 81,000
Commercial Banks (2.05%)
M & T Bank Corporation 150 67,500
Valley National Bancorp 2,530 61,510
----------
129,010
Computer & Data Processing
Services (4.35%)
ChoicePoint, Inc. 1,700(a) 75,650
Comdisco, Inc. 2,300 51,319
Compuware Corp. 3,200(a) 33,200
Fiserv, Inc. 700(a) 30,275
Intuit, Inc. 800(a) 33,100
Sungard Data Systems, Inc. 1,600(a) 49,600
----------
273,144
Computer & Office Equipment (2.76%)
Apple Computer, Inc. 800(a) 41,900
Ceridian Corp. 3,100(a) 74,594
Gateway, Inc. 1,000(a) 56,750
----------
173,244
Crude Petroleum & Natural Gas (3.58%)
Anadarko Petroleum Co. 1,700 83,831
Apache Corp. 1,200 70,575
USX-Marathon Group, Inc. 2,800 70,175
----------
224,581
Cutlery, Handtools & Hardware (0.87%)
Danaher Corp. 1,100 54,381
Drugs (2.61%)
Charles River Laboratories
International, Inc. 1,500(a) 33,281
Genzyme Corp. 2,200(a) 130,763
----------
164,044
Electric Services (3.38%)
AES Corp. 2,700(a) 123,188
Unicom Corp. 2,300 88,981
----------
212,169
Electronic Components &
Accessories (0.77%)
Flextronics International Ltd. 700(a) 48,081
Federal & Federally Sponsored
Credit (1.97%)
SLM Holdings Corp. 3,300 123,544
Gas Production & Distribution (3.27%)
Dynegy, Inc. 1,091 $ 74,529
Kinder Morgan, Inc. 1,500 51,844
Williams Cos., Inc. 1,900 79,206
----------
205,579
General Industrial Machinery (0.82%)
Pall Corp. 2,800 51,800
Gold & Silver Ores (1.06%)
Homestake Mining Co. 9,700 66,688
Grocery Stores (1.40%)
Kroger Co. 4,000(a) 88,250
Health & Allied Services, NEC (0.96%)
HealthSouth Corp. 8,400(a) 60,375
Hospitals (1.81%)
Tenet Healthcare Corp. 4,200(a) 113,400
Household Audio & Video
Equipment (0.59%)
Gemstar International Group Ltd. 600(a) 36,872
Industrial Inorganic Chemicals (1.01%)
Praxair, Inc. 1,700 63,644
Jewelry, Silverware & Plated
Ware (0.54%)
Tiffany & Co. 500 33,750
Life Insurance (4.62%)
John Hancock Financial Services, Inc. 900(a) 21,319
MetLife, Inc. 7,600(a) 160,075
Nationwide Financial Services, Inc. 3,300 108,487
----------
289,881
Lumber & Construction Materials (0.93%)
Crane Co. 2,400 58,350
Management & Public Relations (1.32%)
Dun & Bradstreet Corp. 2,900 83,013
Measuring & Controlling Devices (1.66%)
Eaton Corp. 1,000 67,000
Waters Corp. 300(a) 37,444
----------
104,444
Medical Instruments & Supplies (3.15%)
Bard (C.R.), Inc. 1,800 86,625
Becton, Dickinson & Co. 1,800 51,638
St. Jude Medical, Inc. 1,300(a) 59,637
----------
197,900
Medical Services & Health
Insurance (3.83%)
Aon Corp. 2,600 80,762
UnumProvident Corp. 4,000 80,250
Wellpoint Health Networks, Inc. 1,100(a) 79,681
----------
240,693
Miscellaneous Battery &
Equipment (0.58%)
Energizer Holdings, Inc. 2,000(a) 36,500
Miscellaneous Business Services (1.19%)
Iron Mountain, Inc. 2,200(a) 74,800
Miscellaneous General Merchandise
Stores (0.69%)
Consolidated Stores Corp. 3,600(a) $ 43,200
Miscellaneous Investing (6.15%)
Boston Properties, Inc. 2,500 96,563
Spieker Properties, Inc. 1,700 80,325
Starwood Hotels & Resorts
Worldwide, Inc. 3,800 122,787
Vornado Realty Trust 2,500 86,875
----------
386,550
Miscellaneous Plastics Products,
NEC (1.00%)
Sealed Air Corp. 1,200(a) 62,850
Miscellaneous Transportation
Equipment (1.20%)
FMC Corp. 1,300(a) 75,400
Mortgage Bankers & Broker (2.64%)
Countrywide Credit Industries, Inc. 2,600 78,812
IndyMAC Mortgage Holding 6,400 86,800
----------
165,612
Motor Vehicles & Equipment (2.57%)
General Motors Corp., Class H 600(a) 52,650
SPX Corp. 900(a) 108,844
----------
161,494
Newspapers (3.16%)
Belo (A.H.) Corp. 7,200 124,650
Scripps Co. 1,500 73,875
----------
198,525
Oil & Gas Field Services (2.80%)
Noble Drilling Corp. 1,000(a) 41,187
Santa Fe International Corp. 1,400 48,913
TransOcean Sedco Forex, Inc. 1,600 85,500
----------
175,600
Pulp Mills (0.70%)
Bowater, Inc. 1,000 44,125
Personal Credit Institutions (1.39%)
Household International Corp. 2,100 87,281
Petroleum Refining (1.26%)
Coastal Corp. 1,300 79,138
Primary Non-Ferrous Metals (0.79%)
Engelhard Corp. 2,900 49,481
Professional & Commercial
Equipment (1.23%)
Insight Enterprises, Inc. 1,300(a) 77,106
Public Building & Related
Furniture (1.18%)
Lear Corp. 3,700(a) 74,000
Radio & Television Broadcasting (1.79%)
American Tower Corp., Class A 2,000(a) $ 83,375
Emmis Communications Corp. 700(a) 28,963
----------
112,338
Railroads (1.55%)
Kansas City Southern Industries, Inc. 1,100 97,556
Refrigeration & Service Machinery (1.11%)
American Standard, Inc. 1,700(a) 69,700
Search & Navigation Equipment (1.19%)
Loral Space Communications Ltd. 10,800(a) 74,925
Security & Commodity Services (0.97%)
Franklin Resources, Inc. 2,000 60,750
Security Brokers & Dealer (0.80%)
Bear Stearns Cos., Inc. 1,200 49,950
Sugar & Confectionery Products (1.09%)
Hershey Foods Corp. 1,400 68,163
Surety Insurance (4.77%)
Ace Ltd. 4,100 114,800
AMBAC Financial Group, Inc. 1,500 82,219
XL Cap Ltd., Class A 1,900 102,837
----------
299,856
Women's Clothing Stores (0.42%)
AnnTaylor Stores Corp. 800(a) 26,500
----------
Total Portfolio Investments (98.28%) 6,172,018
Cash & receivables, net of liabilities (1.72%) 107,898
----------
Total Net Assets (100.00%) $6,279,916
----------
(a) Non-income producing security - No dividend paid during the past twelve
months.
MONEY MARKET ACCOUNT
Principal
Amount Value
Commercial Paper (86.63%)
Asset Backed Securities (23.00%)
CXC Inc.;
6.64%; 8/9/2000 $1,000,000 $ 992,807
6.66%; 8/9/2000 500,000 496,392
6.65%; 8/16/2000 1,000,000 991,503
6.65%; 8/22/2000 700,000 693,276
6.64%; 8/23/2000 750,000 742,668
6.60%; 9/15/2000 750,000 739,550
6.61%; 9/25/2000 500,000 492,105
Corporate Asset Funding Co.;
6.12%; 7/12/2000 500,000 499,065
6.60%; 8/7/2000 700,000 695,252
6.60%; 8/14/2000 500,000 495,967
6.65%; 8/24/2000 1,000,000 990,025
6.65%; 8/25/2000 550,000 544,412
6.59%; 9/14/2000 750,000 739,703
6.59%; 9/26/2000 500,000 492,037
Corporate Receivables Corp.;
6.13%; 7/13/2000 1,000,000 997,957
6.13%; 7/17/2000 500,000 498,638
6.65%; 8/2/2000 750,000 745,567
6.63%; 8/10/2000 1,000,000 992,633
6.66%; 8/30/2000 750,000 741,675
6.58%; 9/12/2000 1,000,000 986,657
Quincy Capital Corp.;
6.48%; 7/5/2000 525,000 524,622
6.59%; 7/7/2000 1,200,000 1,198,682
6.60%; 9/15/2000 750,000 739,550
Receivables Capital Corp.;
6.50%; 7/3/2000 250,000 249,910
6.57%; 7/6/2000 1,148,000 1,146,952
6.53%; 7/10/2000 500,000 499,184
6.58%; 7/11/2000 475,000 474,131
6.16%; 7/14/2000 550,000 548,777
6.57%; 7/31/2000 500,000 497,262
6.58%; 8/9/2000 775,000 769,476
6.63%; 11/10/2000 1,000,000 975,690
Sheffield Receivables Corp.;
6.19%; 7/17/2000 425,000 423,831
6.59%; 7/18/2000 1,000,000 996,888
6.60%; 7/26/2000 375,000 373,281
----------
23,986,125
Business Credit Institutions (6.10%)
CIT Group Holdings, Inc.;
6.54%; 7/27/2000 775,000 771,339
6.46%; 8/1/2000 450,000 447,497
6.54%; 8/1/2000 1,070,000 1,063,974
6.54%; 8/8/2000 490,000 486,617
General Electric Capital Corp.;
6.50%; 7/12/2000 420,000 419,166
5.75%; 8/25/2000 250,000 247,804
5.80%; 9/8/2000 550,000 543,886
6.25%; 10/2/2000 275,000 270,560
6.06%; 11/13/2000 250,000 244,319
John Deere Credit Group PLC;
6.09%;7/6/2000 $ 375,000 $ 374,683
6.55%; 7/7/2000 500,000 499,454
6.62%; 7/25/2000 350,000 348,455
6.59%; 10/5/2000 250,000 245,607
International Lease Finance Corp.;
6.52%; 7/21/2000 400,000 398,551
----------
6,361,912
Chemical & Allied Products (1.71%)
Sinochem American CP, Inc.;
6.56%; 8/2/2000 875,000 869,898
6.59%; 8/2/2000 925,000 919,581
----------
1,789,479
Commercial Banks (6.67%)
Bank One, NA;
7.43%; 5/25/2001 750,000 750,000
7.45%; 5/31/2000 250,000 250,000
Citicorp;
6.56%; 7/28/2000 750,000 746,310
6.55%; 8/4/2000 1,000,000 993,814
6.58%; 8/8/2000 1,000,000 993,054
6.58%; 8/16/200 1,470,000 1,457,641
Wells Fargo & Co.;
6.59%; 7/18/2000 1,000,000 996,888
6.55%; 7/31/2000 775,000 770,770
----------
6,958,477
Commodity Contracts Brokers,
Dealers (0.48%)
Louis Dreyfus Corp.;
6.55%; 8/3/2000 500,000 496,998
Crude Petroleum & Natural Gas (1.37%)
Chevron U.K. Investment PLC;
6.15%; 8/7/2000 500,000 496,840
6.63%; 10/6/2000 450,000 441,961
6.62%; 11/2/2000 500,000 488,599
----------
1,427,400
Cutlery, Handtools & Hardware (2.50%)
Stanley Works;
6.60%; 7/21/2000 750,000 747,250
6.62%; 7/21/2000 875,000 871,782
6.60%; 9/29/2000 1,000,000 983,500
----------
2,602,532
Electric Services (4.55%)
Alliant Energy Corp.;
6.57%; 8/18/2000 775,000 768,211
6.68%; 9/20/2000 300,000 295,491
Florida Power Corp.;
6.53%; 7/5/2000 1,500,000 1,498,912
6.58%; 8/4/2000 1,125,000 1,118,009
Potomac Electric Power Co.;
6.55%; 7/11/2000 625,000 623,863
Southern California Edison;
6.65%; 9/14/2000 450,000 443,765
----------
4,748,251
Farm & Garden Machinery (1.42%)
Caterpillar Financial Services Corp.;
6.08%; 8/17/2000 500,000 496,031
6.10%; 9/18/2000 500,000 493,307
6.13%; 9/18/2000 500,000 493,274
----------
1,482,612
Federal & Federally Sponsored
Credit (0.63%)
Private Export Funding Corp.;
6.60%; 12/12/2000 $ 675,000 $ 654,705
Foreign Banks, Branches &
Agencies (2.53%)
Deutsche Bank Financial, Inc.;
6.53%; 7/25/2000 650,000 647,170
6.53%; 7/28/2000 1,000,000 995,103
6.54%; 7/31/2000 1,000,000 994,550
----------
2,636,823
Investment Offices (1.40%)
Morgan Stanley Group, Inc.;
6.52%; 7/5/2000 470,000 469,660
6.57%; 8/11/2000 1,000,000 992,517
----------
1,462,177
Life Insurance (2.75%)
American General Corp.;
6.51%; 7/10/2000 740,000 738,796
6.50%; 7/14/2000 750,000 748,240
6.51%; 7/14/2000 750,000 748,237
6.51%; 7/18/2000 640,000 638,032
----------
2,873,305
Miscellaneous Investing (1.76%)
Delaware Funding Corp.;
6.17%; 7/19/2000 500,000 498,457
6.60%; 7/26/2000 1,000,000 995,417
MLTC Funding, Inc.
6.60%; 7/24/2000 345,000 343,545
----------
1,837,419
Mortgage Bankers & Brokers (2.39%)
Countrywide Home Loan, Inc.;
6.57%; 7/6/2000 500,000 499,544
6.58%; 7/13/2000 500,000 498,903
6.57%; 7/14/2000 500,000 498,814
6.59%; 8/10/2000 1,000,000 992,678
----------
2,489,939
Motor Vehicles & Equipment (0.28%)
Daimler Chrysler North American HDTC;
6.65%; 9/26/2000 300,000 295,179
Paints & Allied Products (3.15%)
Sherwin-Williams Co.;
6.52%; 7/3/2000 1,000,000 999,638
6.52%; 7/13/2000 1,050,000 1,047,718
6.55%; 8/2/2000 250,000 248,544
6.55%; 8/3/2000 1,000,000 993,996
----------
3,289,896
Personal Credit Institutions (13.64%)
Associates First Capital Corp.;
6.54%; 7/24/2000 500,000 497,911
6.54%; 7/25/2000 1,000,000 995,640
6.54%; 7/27/2000 500,000 497,638
6.55%; 7/27/2000 825,000 821,097
6.58%; 8/31/2000 1,000,000 988,851
6.58%; 9/5/2000 500,000 493,968
Commoloco, Inc.;
5.76%; 7/26/2000 $ 500,000 $ 498,000
5.80%; 7/28/2000 350,000 348,477
5.71%; 8/11/2000 300,000 298,049
5.70%; 8/14/2000 450,000 446,865
6.14%; 10/10/2000 250,000 245,693
6.13%; 11/6/2000 350,000 342,372
6.70%; 11/13/2000 225,000 219,347
6.76%; 11/16/2000 200,000 194,817
6.29%; 11/17/2000 500,000 487,857
6.47%; 11/17/2000 300,000 292,506
General Motors Acceptance Corp.;
6.54%; 7/7/2000 600,000 599,346
6.14%; 7/11/2000 575,000 574,019
Household Finance Corp.;
6.55%; 7/10/2000 1,000,000 998,362
6.55%; 7/19/2000 1,000,000 996,725
6.55%; 7/20/2000 845,000 842,079
6.53%; 7/25/2000 1,000,000 995,647
Wells Fargo Financial, Inc.;
6.57%; 7/6/2000 750,000 749,317
6.54%; 7/20/2000 800,000 797,239
----------
14,221,822
Security Brokers & Dealers (6.95%)
Bear Stearns Cos., Inc.;
6.55%; 8/11/2000 1,200,000 1,191,048
Merrill Lynch & Co., Inc.;
6.35%; 7/12/2000 750,000 748,545
6.13%; 7/24/2000 1,000,000 996,084
6.62%; 8/3/2000 1,000,000 993,932
6.57%; 8/17/2000 1,000,000 991,422
Salomon Smith Barney Holdings Inc.;
6.56%; 7/20/2000 600,000 597,923
6.53%; 7/24/2000 500,000 497,914
6.64%; 8/8/2000 500,000 496,495
6.57%; 8/10/2000 750,000 744,525
----------
7,257,888
Telephone Communication (3.35%)
Bell Atlantic;
6.57%; 8/14/2000 1,000,000 991,970
6.57%; 8/24/2000 425,000 420,811
SBC Communications Inc.;
6.25%; 10/11/2000 500,000 491,146
Verizon Global Funding;
6.57%; 8/21/2000 1,600,000 1,585,108
----------
3,489,035
----------
Total Commercial Paper 90,361,974
Bonds (13.26%)
Business Credit Institutions (3.51%)
American Express Credit Corp.
Senior Notes; 6.50%; 8/1/2000 790,000 790,270
CIT Group Holdings, Inc.
Notes;
5.80%; 2/26/2001 250,000 248,468
6.00%; 5/8/2001 350,000 346,408
Senior Notes;
5.00%; 10/6/2000 500,000 498,227
6.20%; 10/20/2000 660,000 659,424
6.13%; 12/15/2000 250,000 249,600
John Deere Capital Corp.
Notes; 7.14%; 6/20/2001 $ 300,000 $ 299,889
General Electric Capital Corp.
Notes; 8.38%; 3/1/2001 100,000 100,998
International Lease Finance Corp.
Notes; 6.25%; 10/15/2000 270,000 269,729
6.88%; 5/1/2001 200,000 199,869
----------
3,662,882
Commercial Banks (0.67%)
JP Morgan & Co., Inc. Senior Notes;
6.13%; 10/2/2000 450,000 449,723
Wells Fargo & Co.
Notes; 5.63%; 2/5/2001 250,000 248,209
----------
697,932
Department Stores (1.15%)
Wal-Mart Stores, Inc. Notes;
8.63%; 4/1/2001 450,000 454,749
5.96%; 6/1/2001 750,000 740,748
----------
1,195,497
Miscellaneous Converted Paper
Products (0.24%)
Kimberly Clark Corp. Notes;
8.63%; 5/1/2001 250,000 253,434
Miscellaneous Equipment Rental &
Leasing (0.29%)
International Lease Finance Corp. Notes;
6.63%; 8/15/2000 300,000 300,162
Personal Credit Institutions (5.87%)
American General Finance Corp. Notes;
5.88%; 7/1/2000 800,000 800,000
Associates Corp. of North America
Senior Notes;
6.25%; 9/15/2000 775,000 774,755
5.60%; 1/15/2001 210,000 208,619
6.63%; 5/15/2001 364,000 363,368
Commercial Credit Corp. Notes;
5.75%; 7/15/2000 650,000 649,862
Ford Motor Credit Co. Notes;
6.85%; 8/15/2000 1,484,000 1,485,292
6.38%; 10/6/2000 200,000 199,988
6.25%; 11/8/2000 300,000 299,411
General Motors Acceptance Corp.
Notes; 5.63%; 2/15/2001 550,000 546,052
5.80%; 2/23/2001 200,000 198,811
5.95%; 4/20/2001 500,000 496,804
Norwest Financial, Inc. Notes;
6.20%; 2/15/2001 100,000 99,668
----------
6,122,630
Security Brokers & Dealers (1.05%)
Bear Stearns Cos., Inc. Senior Notes;
6.75%; 8/15/2000 $ 375,000 $ 375,280
Merrill Lynch & Co., Inc. Notes;
6.38%; 7/18/2000 250,000 250,046
6.00%; 3/1/2001 175,000 173,988
Morgan Stanley Dean Witter & Co., Notes;
5.75%; 5/8/2000 300,000 297,514
----------
1,096,828
Telephone Communication (0.48%)
AT&T Corp., Notes;
7.27%; 6/14/2001 500,000 500,000
----------
Total Bonds 13,829,365
Total Portfolio Investments (99.89%) 104,191,339
Cash and receivables, net of liabilities (0.11%) 112,239
Total Net Assets (100.00%) $104,303,578
----------
REAL ESTATE ACCOUNT
Shares
Held Value
Common Stocks (93.74%)
Apartment REITs (23.56%)
Apartment Investment &
Management Co. 11,800 $ 510,350
Archstone Communities Trust 5,750 121,109
AvalonBay Communities, Inc. 12,200 509,350
BRE Properties, Inc. 13,800 398,475
Charles E. Smith
Residential Realty, Inc. 7,750 294,500
Equity Residential Properties Trust 13,900 639,400
Essex Property Trust, Inc. 8,200 344,400
Home Properties of New York, Inc. 9,600 288,000
----------
3,105,584
Diversified REITs (2.39%)
Excel Legacy Corp. 3,300(a) 8,869
Vornado Realty Trust 8,800 305,800
----------
314,669
Factory REITs (0.37%)
Chelsea GCA Realty, Inc. 1,400 48,388
Hotel REITs (5.72%)
Hospitality Properties Trust 8,800 198,550
Lasalle Hotel Properties 13,200 189,750
MeriStar Hospitality Corp. 14,200 298,200
Starwood Hotels & Resorts
Worldwide, Inc. 2,100 67,856
----------
754,356
Mall REITs (7.83%)
CBL & Associates Properties, Inc. 11,300 281,794
General Growth Properties, Inc. 11,500 365,125
Simon Property Group, Inc. 17,400 386,062
----------
1,032,981
Manufactured Housing REITs (0.34%)
Chateau Properties 1,564 44,183
Mortgage, Mixed Use & Miscellaneous
REITs (0.56%)
EastGroup Properties, Inc. 3,509 73,908
Office & Industrial REITs (41.92%)
AMB Property Corp. 20,200 460,812
Arden Realty Group, Inc. 13,500 317,250
Bedford Property Investors, Inc. 9,000 167,062
Boston Properties, Inc. 8,800 339,900
Centerpoint Properties Corp. 7,000 285,250
Duke-Weeks Realty Corp. 22,100 494,488
Equity Office Properties Trust 34,695 956,281
First Industrial Realty Trust, Inc. 3,900 115,050
Kilroy Realty Corp. 3,000 77,813
Liberty Property Trust 11,900 308,656
Mission West Properties, Inc. 15,200 159,600
Prologis Trust 26,780 570,749
Reckson Associates Realty Corp. 5,700 135,375
Reckson Associates Realty Corp.,
Class B 9,411 $ 239,387
SL Green Realty Corp. 9,500 254,125
Spieker Properties, Inc. 13,650 644,963
----------
5,526,761
Self Storage REITs (1.14%)
Public Storage, Inc. 6,400 150,000
Shopping Center REITs (9.91%)
Developers Diversified Realty Corp. 5,700 85,144
First Washington Realty Trust, Inc. 6,200 136,788
JDN Realty Corp. 12,500 127,343
Kimco Realty Corp. 10,700 438,700
New Plan Excel Realty Trust 2,400 31,200
Pan Pacific Retail Properties, Inc. 11,400 229,425
Regency Realty Corp. 6,200 147,250
Weingarten Realty Investors 2,742 110,708
----------
1,306,558
----------
Total Common Stocks 12,357,388
Principal
Amount Value
Commercial Paper (3.67%)
Personal Credit Institutions (3.67%)
Investment in Joint Trading Account,
Associates First Capital Corp.;
6.89%; 7/3/2000 $483,981 $ 483,981
Total Portfolio Investments (97.41%) 12,841,369
Cash and receivables, net of liabilities (2.59%) 341,023
----------
Total Net Assets (100.00%) $13,182,392
----------
(a) Non-income producing security - No dividend paid during the past twelve
months.
SMALLCAP ACCOUNT
Shares
Held Value
Common Stocks (97.80%)
Advertising (0.69%)
R.H. Donnelley Corp. 12,800(a) $ 248,000
Air Transportation, Scheduled (1.73%)
Frontier Airlines, Inc. 20,000(a) 286,250
Skywest, Inc. 9,000 333,563
----------
619,813
Apparel, Piece Goods, & Notions (0.73%)
Men's Wearhouse, Inc. 11,800(a) 263,288
Beverages (0.62%)
Canandaigua Brands, Inc., Class A 4,400(a) 221,925
Blast Furnace & Basic Steel
Products (1.31%)
Allegheny Technologies, Inc. 7,600 136,800
Quanex Corp. 12,100 179,987
Texas Industries, Inc. 5,300 153,038
----------
469,825
Books (0.65%)
Banta Corp. 12,300 232,931
Business Credit Institutions (0.90%)
ePlus, Inc. 12,200(a) 322,538
Carpets & Rugs (0.56%)
Mohawk Industries, Inc. 9,200(a) 200,100
Commercial Banks (3.15%)
Centura Banks, Inc. 5,600 190,050
Community First Bankshares, Inc. 14,800 241,425
Cullen/Frost Bankers, Inc. 8,100 213,131
First Midwest Bancorp, Inc. 9,700 225,525
Silicon Valley Bancshares 6,100(a) 260,013
----------
1,130,144
Communications Equipment (4.52%)
Antec Corp. 5,500(a) 228,593
Aspect Communications Corp. 8,000(a) 314,500
Harmonic, Inc. 4,300(a) 106,425
INet Technologies, Inc. 6,200(a) 336,350
Metricom, Inc. 7,900(a) 220,213
Natural Microsytems Corp. 3,700(a) 416,019
Titan Corp. 1(a) 27
----------
1,622,127
Computer & Data Processing
Services (17.79%)
AVT Corp. 24,800(a) 182,900
Bindview Development Corp. 34,000(a) 408,000
Caldera Systems, Inc. 22,738(a) 297,015
Ciber, Inc. 14,300(a) 189,475
F5 Networks, Inc. 8,100(a) 441,956
Homestore.com, Inc. 11,000(a) 321,063
Information Resource Engineering, Inc.19,100(a) 482,275
Interactive Intelligence, Inc. 10,700(a) 401,250
Internet Pictures Corp. 22,285(a) 337,061
Marimba, Inc. 10,600(a) 147,737
Matrixone, Inc. 8,300(a) $ 337,187
Metro Information Services, Inc. 4,441(a) 44,410
Netpliance, Inc. 11,200(a) 102,200
NetSolve, Inc. 10,400(a) 270,400
Organic, Inc. 22,200(a) 216,450
Quadramed Corp. 40,000(a) 100,000
Quintus Corp. 30,800(a) 611,669
Razorfish, Inc. 16,000(a) 257,000
SonicWALL, Inc. 5,600(a) 493,150
SPSS, Inc. 11,200(a) 326,200
The 3DO Co. 53,000(a) 415,719
----------
6,383,117
Computer & Office Equipment (2.83%)
Emulex Corp. 5,500(a) 361,281
Micros Systems, Inc. 6,400(a) 118,800
Visual Networks, Inc. 6,400(a) 182,400
Xircom, Inc. 7,400(a) 351,500
----------
1,013,981
Construction & Related Machinery (0.45%)
Manitowoc Co., Inc. 6,100 163,175
Crude Petroleum & Natural Gas (0.75%)
Barrett Resources Corp. 3,700(a) 112,618
Forest Oil Corp. 9,800(a) 156,188
----------
268,806
Department Stores (0.58%)
BJ's Wholesale Club, Inc. 6,300(a) 207,900
Drugs (2.75%)
Inhale Therapeutic Systems, Inc. 4,200 426,168
Matritech, Inc. 65,700(a) 435,263
Sangstat Medical Corp. 4,400(a) 127,050
----------
988,481
Drugs, Proprietaries & Sundries (1.61%)
AmeriSource Health Corp., Class A 9,300(a) 288,300
Bindley Western Industries, Inc. 11,000 290,813
----------
579,113
Eating & Drinking Places (2.55%)
Brinker International, Inc. 5,800(a) 169,650
CEC Entertainment, Inc. 10,200(a) 261,375
Papa John's International, Inc. 5,200(a) 127,400
Rare Hospitality International, Inc. 7,600(a) 214,700
Rubio's Restaurants, Inc. 17,000(a) 140,250
----------
913,375
Electric Services (1.30%)
Cleco Corp. 7,200 241,200
IDACorp, Inc. 7,000 225,750
----------
466,950
Electronic Components &
Accessories (7.35%)
Cobalt Networks, Inc. 10,000(a) 578,750
Corcord Communication 12,100(a) 482,487
Galileo Technology ADR 21,200(a) 455,800
Hutchinson Technology, Inc. 16,900(a) 240,825
International Rectifier Corp. 9,000(a) 504,000
Photronics, Inc. 13,175(a) 373,841
----------
2,635,703
Elementary & Secondary Schools (0.39%)
ITT Educational Services 7,900(a) 138,744
Engines & Turbines (0.56%)
Briggs & Stratton Corp. 5,900 202,075
Fabricated Rubber Products, NEC (0.72%)
Grant Prideco, Inc. 10,400(a) $ 260,000
Family Clothing Stores (1.46%)
American Eagle Outfitters, Inc. 18,000(a) 252,000
Ross Stores, Inc. 16,000 273,000
----------
525,000
Fire, Marine & Casualty
Insurance (0.90%)
Horace Mann Educators 15,800 237,000
Selective Insurance Group, Inc. 4,500 85,500
----------
322,500
Gas Production & Distribution (1.34%)
Peoples Energy Corp. 7,800 252,525
Piedmont Natural Gas Co. 8,600 228,438
----------
480,963
General Industrial Machinery (2.51%)
Applied Science & Technology 15,800(a) 408,825
Kaydon Corp. 9,900 207,900
Pentair, Inc. 4,400 156,200
Regal-Beloit Corp. 8,000 127,500
----------
900,425
Grain Mill Products (0.20%)
Ralcorp Holdings, Inc. 5,800(a) 71,050
Horticultural Specialties (0.41%)
Hines Horticulture, Inc. 21,600(a) 147,150
Hospitals (0.77%)
Universal Health Services, Inc.,
Class B 4,200(a) 277,200
Household Audio & Video
Equipment (0.26%)
Harman International 1,500 91,500
Industrial Machinery, NEC (0.89%)
Applied Power, Inc. 7,200 241,200
Industrial Distribution Group, Inc. 31,300(a) 78,250
----------
319,450
Laundry, Cleaning & Garment
Services (0.18%)
Unifirst Corp. 8,400 66,150
Life Insurance (0.58%)
MONY Group, Inc. 6,200(a) 209,638
Measuring & Controlling Devices (1.26%)
Exfo Electro-Optical Engineering, Inc. 491(a) 21,543
Integrated Measurement Systems, Inc. 13,900(a) 218,925
Roper Industries, Inc. 8,200 210,125
----------
450,593
Meat Products (1.24%)
Michael Foods, Inc. 10,200 249,900
Smithfield Foods, Inc. 6,900(a) 193,631
----------
443,531
Medical Instruments & Supplies (2.21%)
ADAC Laboratories 12,300(a) $ 295,200
Focal, Inc. 40,000(a) 120,000
Novoste Corp. 6,200(a) 378,200
----------
793,400
Medical Service & Health
Insurance (0.94%)
Foundation Health Systems, Inc., Class A26,000(a) 338,000
Men's & Boys' Clothing Stores (1.01%)
Hot Topic, Inc. 11,300(a) 361,600
Men's & Boys' Furnishings (0.80%)
Quiksilver, Inc. 18,400(a) 286,350
Metalworking Machinery (0.42%)
Riviera Tool Co. 44,100(a) 151,594
Miscellaneous Electrical Equipment &
Supplies (0.98%)
Motorcar Parts & Accessories 17,000(a) 16,575
Rayovac Corp. 15,000(a) 335,625
----------
352,200
Miscellaneous Equipment Rental &
Leasing (0.63%)
Rent-A-Center, Inc. 10,000(a) 225,000
Miscellaneous Fabricated Metal
Products (0.37%)
Watts Industries, Inc. 10,600 133,825
Miscellaneous Investing (2.64%)
Centerpoint Properties Corp. 6,100 248,575
Charles E. Smith Residential
Realty, Inc. 4,900 186,200
Cousins Properties, Inc. 5,000 192,500
First Industrial Realty Trust, Inc. 5,600 165,200
Kilroy Realty Corp. 6,032 156,455
----------
948,930
Miscellaneous Manufacturers (0.47%)
Zomax, Inc. 12,800(a) 168,000
Miscellaneous Metal Ores (0.51%)
Stillwater Mining Co. 6,600(a) 183,975
Miscellaneous Plastics Products,
NEC (0.55%)
Tupperware Corp. 9,000 198,000
Miscellaneous Shopping Goods
Stores (0.55%)
Zale Corp. 5,400(a) 197,100
Miscellaneous Textile Goods (0.72%)
Kellwood Co. 12,200 257,725
Motor Vehicles & Equipment (0.56%)
Modine Manufacturing Co. 7,400 199,800
Office Furniture (0.43%)
Kimball International, Inc., Class B 10,500 154,875
Oil & Gas Field Services (2.33%)
Helmerich & Payne, Inc. 6,700 $ 250,412
Pride International, Inc. 13,300(a) 329,175
Seacor Smit, Inc. 6,600(a) 255,338
----------
834,925
Paper & Paper Products (0.45%)
United Stationers, Inc. 5,000(a) 161,875
Paperboard Mills (0.39%)
Packaging Corp. of America 13,900(a) 140,738
Petroleum Refining (0.91%)
Valero Energy Corp. 10,300 327,025
Radio & Television Broadcasting (0.82%)
Price Communications Corp. 12,500(a) 294,531
Refrigeration & Service
Machinery (0.71%)
York International Corp. 9,700 253,412
Retail Stores, NEC (0.86%)
The Children's Place Retail Stores 15,000(a) 307,500
Rubber & Plastics Footwear (0.52%)
Vans, Inc. 12,700(a) 185,737
Shoe Stores (0.52%)
Footstar, Inc. 5,600(a) 186,200
Soap, Cleaners & Toilet Goods (0.68%)
Carter-Wallace, Inc. 12,100 243,512
Special Industry Machinery (2.72%)
Cymer, Inc. 10,300(a) 491,825
PRI Automation, Inc. 5,000(a) 326,953
Varian Medical Systems, Inc. 4,000(a) 156,500
----------
975,278
Sugar & Confectionery Products (0.20%)
Sherwood Brands, Inc., Class A 38,000(a) 71,250
Surety Insurance (0.54%)
Enhance Financial Services Group, Inc.13,400 192,625
Telephone Communication (3.50%)
Firstworld Communications, Inc.,
Class B 23,200(a) 243,600
Focal Communications Corp. 7,300(a) 260,975
Global Crossing Ltd. 8,667(a) 228,050
ICG Communications, Inc. 13,000(a) 286,813
Intermedia Communications, Inc. 8,000(a) 238,000
----------
1,257,438
Trucking & Courier Services,
Except Air (0.54%)
Werner Enterprises, Inc. 16,900 195,406
Women's Clothing Stores (1.83%)
AnnTaylor Stores Corp. 11,800(a) 390,875
Chico's Fas, Inc. 13,300(a) 266,000
----------
656,875
----------
Total Common Stocks 35,091,962
Commercial Paper (3.35%)
Personal Credit Institutions (3.35%)
Investment in Joint Trading Account,
Associates First Capital Corp.;
6.89%; 7/3/2000 $1,203,113 $1,203,113
Total Portfolio Investments (101.16%) 36,295,075
Cash and receivables, net of liabilities (-1.16%) (414,841)
----------
Total Net Assets (100.00%) $35,880,234
----------
(a) Non-income producing security - No dividend paid during the past twelve
months.
SMALLCAP GROWTH ACCOUNT
Shares
Held Value
Common Stocks (90.34%)
Advertising (0.91%)
TMP Worldwide Inc. 10,330(a) $ 762,483
Blast Furnace & Basic Steel
Products (0.60%)
Maverick Tube Corp. 17,180(a) 500,368
Commercial Banks (1.18%)
Investors Financial Services Corp. 10,850 430,609
Silicon Valley Bancshares 13,070(a) 557,109
----------
987,718
Communications Equipment (4.70%)
Proxim, Inc. 12,500(a) 1,237,109
RF Micro Devices, Inc. 10,750(a) 941,969
Tollgrade Communications, Inc. 13,190(a) 1,747,675
----------
3,926,753
Computer & Data Processing
Services (11.55%)
Agile Software Corp. 19,780(a) 1,398,199
CMGI, Inc. 16,950(a) 776,522
Macromedia, Inc. 12,470(a) 1,205,693
Mercury Interactive Corp. 15,860(a) 1,534,455
Numerical Technologies, Inc. 4,040(a) 196,445
ONYX Software Corp. 57,280(a) 1,700,500
Primus Knowledge Solutions, Inc. 23,190(a) 1,043,550
Sapient Corp. 7,300(a) 780,644
SmartForce PLC ADR 21,130(a) 1,014,240
----------
9,650,248
Computer & Office Equipment (0.50%)
Computer Network Tech Corp. 24,100(a) 418,738
Drugs (7.79%)
BioCryst Pharmaceuticals, Inc. 34,110(a) 978,531
Creative Biomolecules, Inc. 62,370(a) 873,180
IDEC Pharmaceuticals 7,320(a) 858,727
Invitrogen Corp. 16,290(a) 1,225,059
Pathogenesis Corp 52,280(a) 1,359,280
Pharmacyclics, Inc. 19,840(a) 1,210,240
----------
6,505,017
Drugs, Proprietaries & Sundries (2.39%)
Allscripts, Inc. 31,520(a) 724,960
Priority Healthcare Corp. 17,140(a) 1,273,716
----------
1,998,676
Electric Lighting & Wiring
Equipment (0.50%)
Advanced Lighting Technology, Inc. 22,550(a) 417,175
Electronic Components &
Accessories (8.82%)
American Superconductor Corp. 24,540(a) 1,184,055
American Xtal Technology, Inc. 6,870(a) 297,128
Applied Micro Circuits Corp. 8,600(a) 849,250
Cree, Inc. 6,830(a) 911,805
Dupont Photomasks, Inc. 27,540(a) 1,886,490
Manufacturers Services Ltd. 16,980(a) $ 349,151
Mattson Technology, Inc. 30,870(a) 1,003,275
PLX Technology, Inc. 21,410(a) 888,515
----------
7,369,669
Grocery Stores (1.36%)
Whole Foods Market, Inc. 27,470(a) 1,134,854
Health & Allied Services, NEC (1.10%)
Accredo Health Inc. 26,470(a) 914,869
Legal Services (0.61%)
Prepaid Legal Services 17,060(a) 509,668
Machinery, Equipment &
Supplies (1.64%)
National Oilwell Inc. 41,590(a) 1,367,271
Management & Public Relations (2.55%)
Diamond Technology Partners, Inc. 17,960(a) 1,580,480
MarchFirst, Inc. 30,295(a) 552,884
----------
2,133,364
Measuring & Controlling Devices (4.62%)
Aclara Biosciences, Inc. 480(a) 24,450
Meade Instruments Corp. 24,860(a) 624,607
Newport Corp. 14,710 1,579,486
Robotic Vision Systems, Inc. 45,940(a) 826,920
Veeco Instruments, Inc. 2,010(a) 147,233
Visible Genetics, Inc. 14,600(a) 658,825
----------
3,861,521
Medical & Dental Laboratories (0.99%)
IDEXX Lab, Inc. 36,240(a) 828,990
Medical Instruments & Supplies (1.18%)
Ventana Medical Systems, Inc. 41,900(a) 984,650
Miscellaneous Business Services (3.38%)
Ebenx, Inc. 13,640(a) 288,997
Forrester Research, Inc. 34,850(a) 2,537,516
----------
2,826,513
Miscellaneous Electrical Equipment &
Supplies (1.91%)
Universal Electronics, Inc. 64,920(a) 1,594,598
Miscellaneous Manufacturers (1.37%)
LightPath Technologies, Inc. 28,740(a) 1,144,211
Miscellaneous Shopping Goods
Stores (1.36%)
Michaels Stores, Inc. 24,810(a) 1,136,608
Miscellaneous Special Trade
Contractors (1.10%)
Dycom Industries, Inc. 19,902(a) 915,492
Non-Store Retailers (0.13%)
The Right Start, Inc. 23,420(a) 106,854
Oil & Gas Field Services (5.89%)
Marine Drilling Co., Inc. 33,330(a) 933,240
Patterson Energy, Inc. 21,400(a) 609,900
Precision Drilling Corp. 21,120(a) 815,760
Pride International, Inc. 51,990(a) 1,286,752
Veritas DGC, Inc. 49,010(a) 1,274,260
----------
4,919,912
Radio & Television Broadcasting (6.13%)
Emmis Communications Corp. 42,410(a) $1,754,714
Radio One, Inc. 30,730(a) 908,456
Radio One, Inc., Class D W/I 56,820(a) 1,253,591
SBS Broadcasting SA 22,070(a) 1,202,815
----------
5,119,576
Radio, Television & Computer
Stores (0.36%)
Tweeter Home Entertainment Group, Inc. 9,930(a) 301,624
Research & Testing Services (5.69%)
Cephalon, Inc. 38,940(a) 2,331,532
Corporate Executive Board Co. 29,360(a) 1,757,930
Regeneron Pharmaceuticals, Inc. 22,210(a) 662,136
----------
4,751,598
Ship & Boat Building &
Repairing (0.85%)
Dril-Quip, Inc. 15,250(a) 712,937
Special Industry Machinery (5.99%)
Asyst Technologies, Inc. 25,150(a) 861,388
Brooks Automation, Inc. 13,650(a) 872,747
Cymer, Inc. 29,490(a) 1,408,147
PRI Automation, Inc. 28,440(a) 1,859,709
----------
5,001,991
Telephone Communication (3.19%)
Advanced Radio Telecom Corp. 25,080(a) 366,795
Metrocall, Inc. 64,780(a) 583,020
Viatel, Inc. 36,000(a) 1,028,250
WebLink Wireless, Inc. 51,740(a) 685,555
----------
2,663,620
----------
Total Portfolio Investments (90.34%) 75,467,566
Cash and receivables, net of liabilities (9.66%) 8,068,524
----------
Total Net Assets (100.00%) $83,536,090
----------
(a) Non-income producing security - No dividend paid during the past twelve
months.
SMALLCAP VALUE ACCOUNT
Shares
Held Value
Common Stocks (95.28%)
Air Transportation,
Non-Scheduled (0.03%)
Offshore Logistics 300(a) $ 4,312
Air Transportation, Scheduled (0.67%)
Airborne Freight Corp. 800 15,150
AirTran Holdings, Inc. 2,700(a) 11,222
Alaska Air Group, Inc. 500(a) 13,562
America West Holding Corp., Class B 2,900(a) 49,663
----------
89,597
Aircraft & Parts (0.15%)
Primex Technologies, Inc. 900 19,800
Automotive Rentals, No Drivers (0.29%)
Avis Group Holdings, Inc. 200(a) 3,750
Dollar Thrifty Automotive Group 1,600(a) 29,500
Rollins Truck Leasing Corp. 700 4,856
----------
38,106
Bakery Products (0.09%)
EarthGrains Co. 600 11,662
Beverages (1.03%)
Beringer Wine Estates Holdings, Inc. 1,900(a) 67,094
Bush Boake Allen, Inc. 400(a) 17,500
Canandaigua Brands, Inc., Class A 100(a) 5,044
Coors (Adolph), Class B 800 48,400
----------
138,038
Bituminous Coal & Lignite
Mining (0.02%)
Arch Coal, Inc. 300 2,306
Blast Furnace & Basic Steel
Products (0.96%)
Carpenter Technology 3,100 65,487
LTV Corp. 1,300 3,738
Pitt - Des Moines, Inc. 600 11,400
Quanex Corp. 2,000 29,750
Texas Industries, Inc. 600 17,325
----------
127,700
Books (0.13%)
Banta Corp. 900 17,044
Broadwoven Fabric Mills,
Cotton (0.22%)
Burlington Industries, Inc. 4,200(a) 7,087
Springs Industries, Inc. 700 22,531
----------
29,618
Business Credit Institutions (0.38%)
Finova Group, Inc. 1,700 22,100
Heller Financial, Inc. 1,400 28,700
----------
50,800
Cable & Other Pay TV Services (0.03%)
On Command Corp. 300(a) 4,275
Chemical & Fertilizer Minerals (0.07%)
Omnova Solutions, Inc. 1,500(a) $ 9,375
Clay, Ceramic, & Refractory
Minerals (0.12%)
AMCOL International Corp. 1,000 16,500
Combination Utility Services (0.24%)
Sierra Pacific Resources Corp. 2,600 32,662
Commercial Banks (5.63%)
Alabama National Bancorp 400 7,925
Associated Banc-Corp. 2,750 59,984
BankNorth Group, Inc. 2,190(a) 33,534
Bay View Capital Corp. 1,600 15,700
BOK Financial Corp. 300(a) 5,269
BSB Bancorp., Inc. 500 10,031
Capital Crossing Bank 900(a) 9,225
CCB Financial Corp. 2,100 77,700
Chittenden Corp. 800 19,550
Citizens Banking Corp. 1,000 16,234
City National Corp. 1,200 42,600
Colonial Bancgroup, Inc. 3,800 36,575
Columbia Banking System, Inc. 660(a) 8,085
Commerce Bancorp., Inc. 200 9,200
Community Trust Bancorp. 200 3,537
Cullen/Frost Bankers, Inc. 300 7,894
Firstmerit Corp. 900 19,237
GBC Bancorp. 1,900 55,575
Gold BanCorp., Inc. 1,200 6,000
Hamilton Bancorp., Inc. 600(a) 10,500
Hudson United Bancorp. 2,600 58,338
Imperial Bancorp. 2,800(a) 43,750
Local Financial Corp. 1,800(a) 15,019
National Commerce Bancorp. 600 9,638
National Bancorp. of Alaska 800 28,700
Provident Bankshares Corp. 840 11,340
Republic Bancorp. 2,900 25,919
Santander Bancorp. 900 11,475
Silicon Valley Bancshares 1,400(a) 59,675
Sterling Bancshares, Inc. 500 5,406
Summit Bancshares, Inc. 500 8,625
UMB Financial Corp. 600 19,688
----------
751,928
Commercial Printing (0.22%)
Harland (John H.) Co. 2,000 29,875
Commercial Sports (0.23%)
Pinnacle Entertainment, Inc. 1,600(a) 31,100
Communications Equipment (1.74%)
Andrew Corp. 2,100(a) 70,481
Antec Corp. 300(a) 12,469
Aspect Communications Corp. 600(a) 23,588
Cable Design Technologies Corp. 200(a) 6,700
Cubic Corp. 200 3,750
Glenayre Technologies, Inc. 100(a) 1,056
Plantronics, Inc. 500(a) 57,750
Sensormatic Electronics Corp. 2,100(a) 33,206
Williams Communication Group, Inc. 700(a) 23,231
----------
232,231
Communications Services, NEC (0.10%)
ITC DeltaCom, Inc. 600(a) 13,387
Computer & Data Processing
Services (1.93%)
Aspen Technology, Inc. 100(a) $ 3,850
CACI International, Inc., Class A 600(a) 11,700
Cerner Corp. 900(a) 24,525
Filenet Corp. 100(a) 1,837
Gerber Scientific, Inc. 400 4,600
Global Sources Ltd. 47(a) 1,193
GTECH Holdings Corp. 2,000(a) 45,375
JDA Software Group, Inc. 1,400(a) 26,862
Midway Games, Inc. 1,900(a) 15,319
Net Perceptions, Inc. 800(a) 12,700
Phoenix Technologies Ltd. 1,100(a) 17,944
Primark Corp. 100(a) 3,725
Serena Software, Inc. 200(a) 9,081
Sybase, Inc. 3,200(a) 73,600
Transaction Systems Architects, Inc. 300(a) 5,138
----------
257,449
Computer & Office Equipment (1.02%)
Anixter International, Inc. 1,800(a) 47,700
Apex, Inc. 500(a) 21,875
Cirrus Logic, Inc. 2,800(a) 44,800
In Focus Systems, Inc. 700(a) 22,531
----------
136,906
Construction & Related
Machinery (0.69%)
Manitowoc Co., Inc. 1,200 32,100
Smith International, Inc. 600(a) 43,687
Terex Corp. 1,200(a) 16,950
----------
92,737
Crude Petroleum & Natural Gas (3.07%)
Cross Timbers Oil Co. 200 4,425
Devon Energy Corp. 1,900 106,756
Houston Exploration Co. 1,000(a) 25,125
HS Resources, Inc. 2,100(a) 63,000
Mitchell Energy & Development
Corp., Class A 500 16,063
Newfield Exploration Co. 1,400(a) 54,775
Nuevo Energy Co. 400(a) 7,550
Pioneer Natural Resources Co. 4,100(a) 52,275
Swift Energy Co. 1,000(a) 28,375
Vintage Petroleum, Inc. 2,300 51,894
----------
410,238
Deep Sea Foreign Transportation of
Freight (0.25%)
Alexander & Baldwin, Inc. 1,500 33,094
Drugs (3.68%)
Alpharma, Inc., Class A 600 37,350
Diagnostic Products Corp. 800 25,600
Guilford Pharmaceuticals, Inc. 1,800(a) 27,113
Human Genome Sciences, Inc. 1,200(a) 160,050
Ligand Pharmaceuticals, Class B 300(a) 3,956
Natures Bounty, Inc. 2,600(a) 16,575
PE Corp. - Celera Genomics Group 1,500(a) 140,250
Perrigo Co. 3,300(a) 20,831
Protein Design Labs, Inc. 100(a) 16,495
Sangstat Medical Corp. 400(a) 11,550
Vertex Pharmaceuticals 300(a) 31,613
----------
491,383
Drugs, Proprietaries & Sundries (0.22%)
Bindley Western Industry, Inc. 1,100 $ 29,081
Eating & Drinking Places (1.76%)
Applebee's International, Inc. 400 12,125
Bob Evans Farms, Inc. 100 1,494
Buffets, Inc. 4,000(a) 50,750
Landry's Seafood Restaurants, Inc. 3,500 29,750
Lone Star Steakhouse & Saloon, Inc. 4,100 41,512
Morrison Management Specialists, Inc. 1,430 40,308
Rare Hospitality International, Inc. 500(a) 14,125
Ruby Tuesday, Inc. 2,400 30,150
Ryan's Family Steak House, Inc. 1,800(a) 15,188
----------
235,402
Electric Lighting & Wiring
Equipment (0.52%)
Gardner Denver Machinery, Inc. 2,700(a) 48,262
Genlyte Group, Inc. 600(a) 12,638
Thomas Industries, Inc. 500 8,844
----------
69,744
Electric Services (3.94%)
CH Energy Group, Inc. 900 30,544
Cleco Corp. 4,200 140,700
CMP Group, Inc. 2,300 67,419
El Paso Electric Co. 7,000(a) 78,312
Public Service Co. of New Mexico 5,200 80,275
Rare Medium Group, Inc. 1,700(a) 26,881
RGS Energy Group, Inc. 2,600 57,850
Unisource Energy Corp. 2,100 31,500
United Illuminating Co. 300 13,125
----------
526,606
Electrical Goods (0.52%)
Barnes Group, Inc. 1,400 22,838
Hughes Supply, Inc. 500 9,875
Pioneer Standard Electronics, Inc. 2,500 36,875
----------
69,588
Electrical Industrial Apparatus (0.29%)
Artesyn Technologies, Inc. 500(a) 13,906
Capstone Turbine Corp. 300(a) 13,519
UCAR International, Inc. 900(a) 11,756
----------
39,181
Electrical Work (0.19%)
CapRock Communications Corp. 1,300(a) 25,350
Electronic Components &
Accessories (6.30%)
Amkor Technology, Inc. 1,100(a) 38,844
ATMI, Inc. 400(a) 18,600
Cypress Semiconductor Corp. 1,400(a) 59,150
ESS Technology, Inc. 1,500(a) 21,750
Integrated Device Technology, Inc. 4,000(a) 239,500
International Rectifier Corp. 1,900(a) 106,400
Kemet Corp. 3,800(a) 95,237
MRV Communications, Inc. 1,600(a) 107,600
Park Electrochemical Corp. 200 7,213
Sanmina Corp. 280(a) 23,940
Silicon Valley Group, Inc. 1,600(a) 41,400
Siliconix, Inc. 700(a) 47,250
Stoneridge, Inc. 500(a) 4,375
Varian Semiconductor Equipment
Associates, Inc. 500(a) 31,406
----------
842,665
Elementary & Secondary Schools (0.11%)
Education Management Corp. 800(a) $ 14,450
Engineering & Architectural
Services (0.13%)
Jacobs Engineering Group, Inc. 400(a) 13,075
URS Corp. 300(a) 4,200
----------
17,275
Engines & Turbines (0.03%)
Detroit Diesel Corp. 300 4,425
Fabricated Structural Metal
Products (0.02%)
Griffon Corp. 600(a) 3,337
Family Clothing Stores (0.01%)
Pacific Sunwear of California, Inc. 100(a) 1,875
Farm & Garden Machinery (0.25%)
AGCO Corp. 700 8,575
CNH Global NV 2,700 24,975
----------
33,550
Fire, Marine & Casualty
Insurance (1.07%)
Alfa Corp. 1,600 28,000
Commerce Group, Inc. 500 14,750
Harleysville Group, Inc. 300 5,025
Renaissance Holdings Ltd. 900 39,206
RLI Corp. 800 27,800
Selective Insurance Group, Inc. 1,300 24,700
State Auto Financial Corp. 300 3,563
----------
143,044
Footwear, Except Rubber (0.09%)
Brown Shoe Co., Inc. 600 7,800
Justin Industries, Inc. 200 4,375
----------
12,175
Freight Transportation
Arrangement (0.22%)
C.H. Robinson Worldwide, Inc. 600 29,700
Furniture & Home Furnishings
Stores (0.06%)
Haverty Furniture Companies, Inc. 1,000 8,500
Gas Production & Distribution (2.74%)
AGL Resources, Inc. 900 14,344
Atmos Energy Corp. 1,300 22,750
Cascade Natural Gas Corp. 1,000 16,687
CTG Resources, Inc. 600 22,013
Energen Corp. 800 17,450
Kinder Morgan, Inc. 500 17,281
NUI Corp. 1,500 40,500
Oneok Inc. 2,100 54,469
Southwestern Energy Co. 5,700 35,625
UGI Corp. 2,200 45,100
Vectren Corp. 1,300 22,425
Washington Gas Light Co. 2,400 57,750
----------
366,394
General Industrial Machinery (0.62%)
Electroglas, Inc. 400(a) $ 8,600
Flowserve Corp. 500 7,531
IDEX Corp. 1,900 59,969
Paxar Corp. 200(a) 2,388
Timken Co. 200 3,725
----------
82,213
Glass & Glassware, Pressed or
Blown (0.19%)
Libbey, Inc. 800 25,700
Grain Mill Products (0.25%)
Corn Products International, Inc. 1,000 26,500
Ralcorp Holdings, Inc. 300(a) 3,675
Riviana Foods, Inc. 200 3,488
----------
33,663
Groceries & Related Products (0.52%)
Fleming Cos., Inc. 1,800 23,512
Suiza Foods Corp. 300(a) 14,663
Universal Corp. 1,500 31,688
----------
69,863
Grocery Stores (0.15%)
Great Atlantic & Pacific Tea Co., Inc. 1,200 19,950
Guided Missiles, Space Vehicles (0.09%)
Gencorp, Inc. 1,500 12,000
Health & Allied Services, NEC (0.40%)
Ameripath, Inc. 300(a) 2,662
Apria Healthcare Group, Inc. 2,700(a) 33,075
Coventry Health Care, Inc. 1,300(a) 17,327
----------
53,064
Heavy Construction, Except
Highway (0.31%)
McDermott International, Inc. 3,300 29,081
Morrison Knudsen Corp. 1,700(a) 12,325
----------
41,406
Hose, Belting, Gaskets & Packing (0.44%)
Mark IV Industries, Inc. 2,800 58,450
Hospitals (0.04%)
Triad Hospitals, Inc. 200(a) 4,837
Hotels & Motels (1.59%)
Aztar Corp. 1,900(a) 29,450
Boyd Gaming Corp. 2,800(a) 15,575
Extended Stay America, Inc. 5,500(a) 50,875
Four Seasons Hotel, Inc. 1,400 87,062
Marcus Corp. 800 9,700
Prime Hospitality Corp. 2,100(a) 19,819
----------
212,481
Household Furniture (0.40%)
Furniture Brands International, Inc. 1,100(a) 16,638
La-Z-Boy, Inc. 2,600 36,400
----------
53,038
Individual & Family Services (0.03%)
Sunrise Assisted Living, Inc. 200(a) 3,700
Industrial Inorganic Chemicals (0.91%)
Cambrex Corp. 700 31,500
General Chemical Group, Inc. 900(a) 619
Georgia Gulf Corp. 4,300 89,494
----------
121,613
Industrial Machinery, NEC (0.22%)
Applied Power, Inc., Class A 600 $ 20,100
Parker-Hannifin Corp. 173 5,925
Sauer-Danfoss, Inc. 300 2,963
----------
28,988
Industrial Organic Chemicals (0.04%)
Ethyl Corp. 2,200 5,500
Investment Offices (0.57%)
Allied Capital Corp. 4,500 76,500
Iron & Steel Foundries (0.15%)
Intermet Corp. 2,200 15,125
Precision Castparts Corp. 100 4,525
----------
19,650
Life Insurance (1.58%)
Amerus Life Holdings, Inc., Class A 400 8,250
Annuity & Life Re (Holdings), Ltd. 1,900 46,550
Delphi Financial Group, Inc., Class A 1,800(a) 61,087
FBL Financial Group, Inc. 2,300 36,225
Kansas City Life Insurance Co. 200 5,375
MONY Group, Inc. 1,400 47,338
Nationwide Financial Services, Inc. 200 6,575
----------
211,400
Machinery, Equipment & Supplies (0.42%)
Applied Industrial Technology, Inc. 800 13,100
National Oilwell, Inc. 800(a) 26,300
Willis Lease Financial Corp. 2,700(a) 16,875
----------
56,275
Management & Public Relations (0.77%)
Franklin Covey Co. 800(a) 5,550
Ogden Corp. 1,600(a) 14,400
PerkinElmer, Inc. 1,200 79,350
US Oncology, Inc. 600(a) 3,000
----------
102,300
Manifold Business Forms (0.16%)
Standard Register Co. 300 4,275
Wallace Computer Services, Inc. 1,700 16,788
----------
21,063
Measuring & Controlling Devices (1.66%)
Cohu, Inc. 200 5,394
Credence Systems Corp. 800(a) 44,150
Cyberonics, Inc. 1,500(a) 18,000
Esterline Technologies Co. 1,500(a) 22,312
Ionics, Inc. 700(a) 21,438
Mine Safety Appliances Co. 600 14,400
Tektronix, Inc. 1,300 96,200
----------
221,894
Meat Products (0.08%)
Smithfield Foods, Inc. 400(a) 11,225
Medical & Dental Laboratories (0.49%)
Laboratory Corp. of America Holdings 110(a) 8,484
Quest Diagnostics, Inc. 800(a) 57,250
----------
65,734
Medical Instruments & Supplies (1.23%)
Block Drug Co., Inc. 300 12,694
Coherent, Inc. 600(a) 50,325
Conmed Corp. 1,100(a) 28,462
Datascope Corp. 400 14,400
Eclipse Surgical Technologies, Inc. 4,500(a) 19,687
Invacare Corp. 600 $ 15,750
Vital Signs, Inc. 1,300 23,563
----------
164,881
Men's & Boys' Furnishings (0.26%)
Columbia Sportswear Co. 1,300(a) 34,937
Metal Cans & Shipping Containers (0.10%)
Silgan Holdings, Inc. 1,400(a) 13,737
Metal Forgings & Stampings (0.16%)
Tower Automotive, Inc. 1,700(a) 21,250
Metal Mining Services (0.30%)
Freeport-McMoRan Cooper &
Gold, Inc., Class B 4,300(a) 39,775
Metals & Minerals, Except
Petroleum (0.06%)
Reliance Steel & Aluminum Co. 200 3,825
Ryerson Tull, Inc. 400 4,150
----------
7,975
Metalworking Machinery (0.38%)
Kennametal, Inc. 2,400 51,450
Miscellaneous Apparel & Accessory
Stores (0.06%)
Pier 1 Imports, Inc. 800 7,800
Miscellaneous Business Services (0.15%)
Pegasystems, Inc. 1,300(a) 6,500
Pittston Brink's Group 1,000 13,688
----------
20,188
Miscellaneous Chemical Products (0.69%)
Crompton Corp. 800 9,800
Solutia, Inc. 6,000 82,500
----------
92,300
Miscellaneous Durable Goods (0.27%)
Handleman Co. 2,900(a) 36,250
Miscellaneous Electrical Equipment &
Supplies (0.53%)
Electro Scientific Industries, Inc. 1,300(a) 57,241
Lincoln Electric Holdings, Inc. 1,000 14,250
----------
71,491
Miscellaneous Equipment Rental &
Leasing (0.31%)
Aaron Rents, Inc. 800 10,050
Xtra Corp. 800(a) 31,550
----------
41,600
Miscellaneous Fabricated Metal
Products (0.41%)
AptarGroup, Inc. 1,700 45,900
Watts Industries, Inc. 700 8,838
----------
54,737
Miscellaneous Fabricated Textile
Products (0.02%)
Collins & Aikman Corp. 600(a) 3,113
Miscellaneous Food & Kindred
Products (0.51%)
American Italian Pasta Co., Class A 600(a) 12,413
Universal Foods Corp. 3,000 55,500
----------
67,913
Miscellaneous Investing (9.76%)
Arden Realty Group, Inc. 4,200 $ 98,700
AvalonBay Communities, Inc. 900 37,575
BRE Properties, Inc. 2,200 63,525
Capstead Mortgage Corp. 850 7,119
CBL & Associates Properties, Inc. 2,400 59,850
Centerpoint Properties Corp. 2,300 93,725
Essex Property Trust, Inc. 700 29,400
Franchise Financial Corp. 1,600 36,800
Gables Residential Trust 700 18,069
General Growth Properties, Inc. 1,900 60,325
Healthcare Realty Trust, Inc. 3,500 59,719
Home Properties of New York, Inc. 1,400 42,000
Innkeepers USA Trust 3,700 33,762
Liberty Property Trust 1,500 38,906
Manufactured Homes Communities, Inc. 2,400 57,450
Meristar Hospitality Corp. 3,100 65,100
Mills Corp. 2,900 54,556
National Golf Properties, Inc. 900 19,012
Post Properties, Inc. 2,600 114,400
Prologis Trust 3,200 68,200
Sovran Self Storage, Inc. 1,200 25,725
Summit Properties, Inc. 5,300 111,300
The Macerich Co. 3,000 66,188
Urban Shopping Centers, Inc. 1,200 40,425
Westfield America, Inc. 200 2,713
----------
1,304,544
Miscellaneous Manufacturers (1.29%)
Blyth, Inc. 1,000 29,500
Gentek, Inc. 10,100 112,994
Nacco Industries, Inc. 400 14,050
Williams Industries, Inc. 1,000(a) 15,437
----------
171,981
Miscellaneous Plastics Products,
NEC (0.05%)
A. Schulman, Inc. 600 7,237
Miscellaneous Shopping Good
Stores (0.14%)
Michaels Stores, Inc. 200(a) 9,163
OfficeMax, Inc. 1,900(a) 9,500
----------
18,663
Miscellaneous Textile Goods (0.07%)
Kellwood Co. 500 10,562
Miscellaneous Transportation
Equipment (0.34%)
Fleetwood Enterprises, Inc. 300 4,275
Polaris Industries, Inc. 1,300 41,600
----------
45,875
Mortgage Bankers & Brokers (0.17%)
American Home Mortgage Holdings, Inc. 600(a) 2,738
MicroFinancial, Inc. 2,000 20,000
----------
22,738
Motion Picture Production & Services (0.03%)
Metromedia International Group, Inc. 900(a) 4,275
Motor Vehicles & Equipment (0.99%)
American Axle & Manufacturing
Holdings, Inc. 1,300(a) $ 18,444
Arvin Industries, Inc. 2,400 41,700
Modine Manufacturing Co. 800 21,600
Oshkosh Truck Corp. 700 25,025
Winnebago Industries, Inc. 2,000 26,125
----------
132,894
Motor Vehicles, Parts & Supplies (0.26%)
Dura Automotive Systems, Inc. 800(a) 8,650
Exide Corp. 3,200 25,600
----------
34,250
New & Used Car Dealers (0.29%)
Lithia Motors Inc., Class A 2,600(a) 34,775
Sonic Automotive, Inc. 400(a) 4,275
----------
39,050
Newspapers (0.08%)
Journal Register Co. 600(a) 10,950
Non-Ferrous Foundries (Casting) (0.05%)
Wolverine Tube, Inc. 400(a) 6,800
Non-Ferrous Rolling & Drawing (0.47%)
Commscope, Inc. 400(a) 16,400
Mueller Industries, Inc. 1,500(a) 42,000
Superior Telecom, Inc. 400 3,975
----------
62,375
Non-Store Retailers (0.05%)
Systemax, Inc. 1,800(a) 6,975
Office Furniture (0.04%)
Kimball International, Inc., Class B 400 5,900
Oil & Gas Field Services (1.30%)
Helmerich & Payne, Inc. 2,000 74,750
Key Energy Services, Inc. 900(a) 8,662
Parker Drilling Co. 1,200(a) 7,425
R & B Falcon Corp. 1,900(a) 44,769
SEACOR SMIT, Inc. 150(a) 5,803
Seitel, Inc. 2,400(a) 19,500
Varco International, Inc. 100(a) 2,325
Veritas DGC, Inc. 400(a) 10,400
----------
173,634
Operative Builders (0.24%)
Del Webb Corp. 1,700(a) 26,031
Lennar Corp. 300 6,075
----------
32,106
Opthalmic Goods (0.29%)
Bacou USA, Inc. 300(a) 6,000
Cooper Cos., Inc. 900 32,738
----------
38,738
Paper & Paper Products (0.39%)
United Stationers, Inc. 1,600(a) 51,800
Paperboard Containers & Boxes (0.15%)
Greif Bros. Corp. 500 15,375
Ivex Packaging Corp. 400(a) 4,450
----------
19,825
Paperboard Mills (0.22%)
Caraustar Industries, Inc. 1,600 24,200
Gaylord Container Corp., Inc. 2,100(a) 5,644
----------
29,844
Personal Credit Institutions (0.28%)
AmeriCredit Corp. 2,200(a) $ 37,400
Personnel Supply Services (0.39%)
Computer Horizons Corp. 2,000(a) 26,875
Interim Services, Inc. 1,100(a) 19,525
Kforce.com, Inc. 900(a) 6,244
----------
52,644
Petroleum Refining (0.40%)
Tesoro Petroleum Corp. 2,400(a) 24,300
Valero Energy Corp. 900 28,575
----------
52,875
Photographic Equipment &
Supplies (0.60%)
Imation Corp. 2,100(a) 61,687
Polaroid Corp. 1,000 18,063
----------
79,750
Plastic Materials & Synthetics (1.58%)
Cytec Industries, Inc. 2,100(a) 51,844
Geon Co. 2,800 51,800
Hanna (M.A.) Co. 2,400 21,600
Wellman, Inc. 5,300 85,794
----------
211,038
Pottery & Related Products (0.07%)
Mikasa, Inc. 1,000 9,687
Poultry & Eggs (0.01%)
Pilgrims Pride Corp., Class B 200 1,425
Primary Non-Ferrous Metals (0.03%)
Maxxam, Inc. 200(a) 3,550
Public Building & Related
Furniture (0.09%)
Lear Corp. 600(a) 12,000
Radio & Television Broadcasting (0.75%)
Allegiance Telecom, Inc. 500(a) 32,000
Emmis Communications Corp. 500(a) 20,688
Entercom Communications Corp. 400(a) 19,500
Sinclair Broadcast Group, Inc. 2,500(a) 27,500
----------
99,688
Radio, Television & Computer
Stores (0.03%)
InterTan, Inc. 300(a) 3,525
Railroad Equipment (0.50%)
ABC-NACO, Inc. 800(a) 6,400
Trinity Industries, Inc. 2,600 48,100
Wabtec Corp. 1,200 12,450
----------
66,950
Real Estate Agents & Managers (0.08%)
Security Capital Group, Inc. 600(a) 10,200
Real Estate Operators & Lessors (0.21%)
LNR Property Corp. 500 9,750
Nationwide Health Properties, Inc. 1,300 18,119
----------
27,869
Refrigeration & Service Machinery (0.15%)
Nortek, Inc. 1,000(a) 19,750
Rental of Railroad Cars (0.08%)
GATX Corp. 300 10,200
Research & Testing Services (0.30%)
Core Laboratories NV 1,400(a) $ 40,600
Residential Building Construction (1.54%)
D.R. Horton, Inc. 3,800 51,537
Kaufman & Broad Home Corp. 2,700 53,494
M.D.C. Holdings, Inc. 2,400 44,700
Ryland Group, Inc. 1,900 42,038
Standard Pacific Corp. 1,400 14,000
----------
205,769
Retail Stores, NEC (0.21%)
Petco Animal Supplies, Inc. 1,400(a) 27,475
Rubber & Plastics Footwear (0.33%)
Direct Focus, Inc. 900(a) 44,100
Sand & Gravel (0.24%)
Florida Rock Industries, Inc. 900 32,062
Savings Institutions (3.53%)
Bank United Corp. 4,900 172,419
Commercial Federal Corp. 3,700 57,581
Downey Financial Corp. 1,400 40,600
Firstfed Financial Corp. 1,400(a) 19,775
Flushing Financial Corp. 2,500 38,125
Greenpoint Financial Corp. 4,200 78,750
Ocwen Financial Corp. 4,500(a) 25,031
Roslyn Bancorp., Inc. 200 3,322
St. Francis Capital Corp 1,000 15,125
Webster Financial Corp. 300 6,656
Westcorp., Inc. 1,200 14,325
----------
471,709
Sawmills & Planning Mills (0.26%)
Universal Forest Products, Inc. 2,500 34,375
Screw Machine Products, Bolts,
Etc. (0.15%)
SPS Technologies, Inc. 500(a) 20,531
Security & Commodity Services (0.28%)
Gabelli Asset Management Inc., Class A 1,500(a) 37,500
Security Brokers & Dealers (0.61%)
Dain Rauscher Corp. 600 39,600
Raymond James Financial, Inc. 500 11,250
TD Waterhouse Group, Inc. 1,800(a) 31,163
----------
82,013
Shoe Stores (0.37%)
Footstar, Inc. 1,100(a) 36,575
Genesco, Inc. 800(a) 12,850
----------
49,425
Special Industry Machinery (1.63%)
Kulicke & Soffa Industries, Inc. 800(a) 47,500
LAM Research Corp. 3,000(a) 112,500
Milacron, Inc. 3,200 46,400
Varian Medical Systems, Inc. 300(a) 11,738
----------
218,138
Structural Clay Products (0.04%)
Dal-Tile International, Inc. 600(a) 4,950
Surety Insurance (1.69%)
CNA Surety Corp. 1,000 11,937
Enhance Financial Services Group, Inc. 2,000 28,750
Financial Security Assurance
Holdings Ltd. 700 53,113
Professionals Group, Inc. 100(a) $ 2,444
Radian Group, Inc. 1,200 62,100
SCPIE Holdings, Inc. 500 10,250
Triad Guaranty, Inc. 2,500(a) 57,344
----------
225,938
Telephone Communication (0.56%)
Brightpoint, Inc. 100(a) 866
CT Communications, Inc. 500 14,219
General Communication, Inc., Class A 1,300(a) 6,662
NEXTLINK Communications, Class A 1,314(a) 49,850
Talk.com, Inc. 600(a) 3,487
----------
75,084
Title Insurance (0.38%)
Fidelity National Financial, Inc. 1,300 23,806
First American Corp. 700 10,019
Stewart Information Services Corp. 1,200 17,550
----------
51,375
Trucking & Courier Services,
Except Air (1.08%)
American Freightways Corp. 3,900(a) 56,550
Roadway Express, Inc. 300 7,031
US Freightways Corp. 200 4,912
Werner Enterprises, Inc. 2,100 24,281
Yellow Freight Systems Corp. 3,500(a) 51,625
----------
144,399
Variety Stores (0.21%)
ShopKo Stores, Inc. 1,800(a) 27,675
Veterinary Services (0.07%)
Veterinary Centers of America, Inc. 700(a) 9,625
Water Supply (0.56%)
SJW Corp. 100 11,887
United Water Resources, Inc. 1,800 62,775
----------
74,662
Women's Clothing Stores (0.32%)
Cato Corp., Class A 700 8,137
Charming Shoppes, Inc. 6,700(a) 34,128
----------
42,265
----------
Total Portfolio Investments (95.28%) 12,735,606
Cash and receivables, net of liabilities (4.72%) 631,234
----------
Total Net Assets (100.00%) $13,366,840
----------
(a) Non-income producing security - No dividend paid during the past twelve
months.
STOCK INDEX 500 ACCOUNT
Shares
Held Value
Common Stocks (96.75%)
Accounting, Auditing, &
Bookkeeping (0.12%)
Paychex, Inc. 1,758 $ 73,836
Advertising (0.25%)
Interpublic Group of Companies, Inc. 1,427 61,361
Omnicom Group, Inc. 841 74,902
Young & Rubicam, Inc. 341 19,501
----------
155,764
Air Transportation, Scheduled (0.26%)
AMR Corp. 711(a) 18,797
Delta Air Lines, Inc. 580 29,326
FedEx Corp. 1,372(a) 52,136
Southwest Airlines Co. 2,348 44,465
US Airways Group, Inc. 315(a) 12,285
----------
157,009
Aircraft & Parts (0.97%)
B.F. Goodrich Co. 507 17,270
Boeing Co. 4,319 180,587
General Dynamics Corp. 950 49,638
Honeywell International, Inc. 3,777 127,238
Northrop Grumman Corp. 330 21,863
Rockwell International Corp. 890 28,035
Textron, Inc. 683 37,095
United Technologies Corp. 2,226 131,056
----------
592,782
Auto & Home Supply Stores (0.02%)
AutoZone, Inc. 633(a) 13,926
Automotive Rentals, No Drivers (0.01%)
Ryder Systems, Inc. 281 5,321
Bakery Products (0.13%)
Sara Lee Corp. 4,115 79,471
Beer, Wine & Distilled Beverages (0.03%)
Brown-Forman Corp. 324 17,415
Beverages (2.12%)
Anheuser-Busch Cos., Inc. 2,137 159,607
Coca-Cola Co. 11,712 672,707
Coca-Cola Enterprises, Inc. 1,997 32,576
Coors (Adolph) Co., Class B 174 10,527
PepsiCo, Inc. 6,799 302,131
Seagram Co. Ltd. 2,097 121,626
----------
1,299,174
Blankbooks & Bookbinding (0.01%)
Deluxe Corp. 342 8,058
Blast Furnace & Basic Steel
Products (0.06%)
Allegheny Technologies, Inc. 394 7,092
Bethlehem Steel Corp. 624(a) 2,223
Nucor Corp. 402 13,341
USX-U.S. Steel Group 418 7,759
Worthington Industries, Inc. 408 4,284
----------
34,699
Books (0.12%)
Harcourt General, Inc. 339 $ 18,433
McGraw-Hill Cos., Inc. 920 49,680
Meredith Corp. 239 8,066
----------
76,179
Broadwoven Fabric Mills, Cotton (0.01%)
Springs Industries, Inc. 84 2,704
Business Credit Institutions (0.23%)
Associates First Capital Corp.,
Class A 3,446 76,889
Providian Financial Corp. 675 60,750
----------
137,639
Cable & Other Pay TV Services (0.28%)
Comcast Corp., Special Class A 4,248(a) 172,044
Chemicals & Allied Products (0.18%)
Dow Chemical Co. 3,201 96,630
Sigma-Aldrich Corp. 403 11,788
----------
108,418
Combination Utility Services (0.22%)
Cinergy Corp. 752 19,129
Constellation Energy Group, Inc. 708 23,054
Entergy Corp. 1,088 29,580
Northern States Power Co. 744 15,020
PG&E Corp. 1,824 44,916
----------
131,699
Commercial Banks (4.35%)
AmSouth Bancorp. 1,859 29,279
Bank of America Corp. 7,842 337,206
Bank of New York Co., Inc. 3,490 162,285
Bank One Corp. 5,384 143,013
BB&T Corp. 1,650 39,394
Chase Manhattan Corp. 6,015 277,065
Comerica, Inc. 741 33,252
Fifth Third Bancorp. 1,465 92,661
First Union Corp. 4,640 115,130
Firstar Corp. 4,590 96,677
FleetBoston Financial Corp. 4,264 144,976
Huntington Bancshares, Inc. 1,050 16,603
J.P. Morgan & Co., Inc. 768 84,576
KeyCorp 2,064 36,378
MBNA Corp. 3,794 102,912
Mellon Financial Corp. 2,328 84,827
National City Corp. 2,869 48,952
Northern Trust Corp. 1,052 68,446
Old Kent Financial Corp. 650 17,386
PNC Financial Corp. 1,374 64,406
Regions Financial Corp. 1,044 20,750
Southtrust Corp. 796 18,010
State Street Corp. 761 80,714
Summit Bancorp. 832 20,488
Suntrust Banks, Inc. 1,431 65,379
Synovus Financial Corp. 1,335 23,529
Union Planters Corp. 640 17,880
US Bancorp. 3,557 68,472
Wachovia Corp. 958 51,972
Wells Fargo Co. 7,635 295,855
----------
2,658,473
Commercial Printing (0.02%)
R.R. Donnelley & Sons Co. 577 13,019
Communications Equipment (4.74%)
ADC Telecommunications, Inc. 1,596(a) $ 133,865
Andrew Corp. 382(a) 12,821
Comverse Technology, Inc. 723(a) 67,239
Lucent Technologies, Inc. 15,489 917,723
Motorola, Inc. 10,260 298,181
Network Appliance, Inc. 1,441(a) 116,001
Nortel Networks Corp. 14,018 956,728
QUALCOMM, Inc. 3,506(a) 210,360
Scientific-Atlanta, Inc. 754 56,173
Tellabs, Inc. 1,938(a) 132,632
----------
2,901,723
Communications Services (0.36%)
Nextel Communications, Inc. 3,588(a) 219,541
Computer & Data Processing
Services (9.63%)
3COM Corp. 1,660(a) 95,658
Adobe Systems, Inc. 567 73,710
America Online, Inc. 10,983(a) 579,353
Autodesk, Inc. 276 9,574
BMC Software, Inc. 1,155(a) 42,139
Citrix Systems, Inc. 876(a) 16,589
Computer Associates International, Inc.2,785 142,557
Computer Sciences Corp. 792(a) 59,153
Compuware Corp. 1,706(a) 17,700
Electronic Data Systems Corp. 2,265 93,431
First Data Corp. 1,950 96,769
IMS Health, Inc. 1,406 25,308
Mercury Interactive Corp. 388(a) 37,539
Microsoft Corp. 24,901(a) 1,992,079
Novell, Inc. 1,559(a) 14,421
Oracle Systems Corp. 13,432(a) 1,129,127
Parametric Technology Corp. 1,306(a) 14,366
Peoplesoft, Inc. 1,306(a) 21,876
Sapient Corp. 278(a) 29,729
Shared Medical Systems Corp. 125 9,117
Siebel Systems, Inc. 945(a) 154,567
Sun Microsystems, Inc. 7,508(a) 682,759
Unisys Corp. 1,475(a) 21,480
Veritas Software Corp. 1,850(a) 209,079
Yahoo!, Inc. 2,571(a) 318,483
----------
5,886,562
Computer & Office Equipment (9.37%)
Apple Computer, Inc. 1,540(a) 80,658
Automatic Data Processing, Inc. 2,968 158,974
Cabletron Systems, Inc. 863(a) 21,791
Ceridian Corp. 686(a) 16,507
Cisco Systems, Inc. 32,917(a) 2,092,285
Compaq Computer Corp. 8,035 205,395
Dell Computer Corp. 12,185(a) 600,873
EMC Corp. 10,269(a) 790,071
Gateway, Inc. 1,522(a) 86,374
Hewlett-Packard Co. 4,732 590,909
International Business Machines Corp. 8,389 919,119
Lexmark International, Inc. 612(a) 41,157
NCR Corp. 450(a) $ 17,522
Pitney Bowes, Inc. 1,220 48,800
Seagate Technology, Inc. 1,075(a) 59,125
----------
5,729,560
Construction & Related Machinery (0.24%)
Baker Hughes, Inc. 1,561 49,952
Caterpillar, Inc. 1,655 56,063
Dover Corp. 961 38,981
----------
144,996
Consumer Products (0.59%)
Fortune Brands, Inc. 750 17,297
Nabisco Group Holdings Corp. 1,552 40,255
Philip Morris Cos., Inc. 11,021 292,745
UST, Inc. 768 11,280
----------
361,577
Credit Reporting & Collection (0.03%)
Equifax, Inc. 669 17,561
Crude Petroleum & Natural Gas (0.60%)
Anadarko Petroleum Co. 607 29,933
Apache Corp. 539 31,700
Burlington Resources, Inc. 1,019 38,977
Kerr-McGee Corp. 446 26,286
Occidental Petroleum Corp. 1,735 36,543
Texaco, Inc. 2,612 139,089
Union Pacific Resources Group, Inc. 1,192 26,224
USX-Marathon Group, Inc. 1,475 36,967
----------
365,719
Crushed & Broken Stone (0.03%)
Vulcan Materials Co. 476 20,319
Cutlery, Handtools & Hardware (0.48%)
Danaher Corp. 671 33,173
Gillette Co. 4,940 172,591
Illinois Tool Works, Inc. 1,427 81,339
Snap-On, Inc. 277 7,375
----------
294,478
Department Stores (2.59%)
Dillard's, Inc., Class A 442 5,415
Federated Department Stores, Inc. 1,013(a) 34,189
J.C. Penney Co., Inc. 1,235 22,770
Kohl's Corp. 1,543(a) 85,829
May Department Stores Co. 1,573 37,752
Sears, Roebuck & Co. 1,668 54,419
Target Corp. 2,167 125,686
Wal-Mart Stores, Inc. 21,092 1,215,427
----------
1,581,487
Drug Stores & Proprietary Stores (0.39%)
CVS Corp. 1,847 73,880
Longs Drug Stores Corp. 186 4,046
Rite Aid Corp. 1,215 7,973
Walgreen Co. 4,769 153,502
----------
239,401
Drugs (9.61%)
Abbott Laboratories 7,333 326,777
ALZA Corp. 485(a) 28,676
American Home Products Corp. 6,172 362,605
Amgen, Inc. 4,859(a) 341,345
Biogen, Inc. 703(a) 45,344
Bristol-Myers Squibb Co. 9,335 543,764
Johnson & Johnson 6,582 670,541
Lilly (Eli) & Co. 5,344 533,732
Medimmune, Inc. 987(a) $ 73,038
Merck & Co., Inc. 10,881 833,757
Pfizer, Inc. 29,786 1,429,726
Pharmacia Corp. 6,008 310,539
Schering-Plough Corp. 6,928 349,864
Watson Pharmaceuticals, Inc. 457(a) 24,564
----------
5,874,272
Drugs, Proprietaries & Sundries (0.20%)
Cardinal Health, Inc. 1,302 96,348
McKesson HBOC, Inc. 1,332 27,889
----------
124,237
Eating & Drinking Places (0.40%)
Darden Restaurants, Inc. 586 9,523
McDonald's Corp. 6,323 208,263
Tricon Global Restaurants, Inc. 698(a) 19,719
Wendy's International, Inc. 537 9,565
----------
247,070
Electric Lighting & Wiring
Equipment (0.04%)
Cooper Industries, Inc. 440 14,327
National Service Industries, Inc. 193 3,764
Thomas & Betts Corp. 274 5,240
----------
23,331
Electric Services (1.76%)
AES Corp. 2,017(a) 92,026
Ameren Corp. 649 21,904
American Electric Power Co., Inc. 1,526 45,208
CMS Energy Corp. 519 11,483
Consolidated Edison, Inc. 1,003 29,714
CP&L Energy 756(a) 24,145
Dominion Resources, Inc. 1,126 48,277
DTE Energy Co. 686 20,966
Duke Energy Corp. 1,739 98,035
Edison International 1,572 32,226
Enron Corp. 3,464 223,427
FirstEnergy Corp. 1,093 25,549
Florida Progress Corp. 466 21,844
FPL Group, Inc. 843 41,729
GPU, Inc. 574 15,534
New Century Energies Inc. 552 16,560
Niagara Mohawk Holdings, Inc. 816(a) 11,373
Peco Energy Co. 803 32,371
Pinnacle West Capital Corp. 401 13,584
PPL Corp. 683 14,983
Public Service Enterprise Group, Inc. 1,024 35,456
Reliant Energy, Inc. 1,398 41,328
Sempra Energy 967 16,439
Southern Co. 3,069 71,546
Texas Utilities Holdings Co. 1,247 36,787
Unicom Corp. 841 32,536
----------
1,075,030
Electrical Industrial Apparatus (0.26%)
American Power Conversion Corp. 917(a) 37,425
Emerson Electric Co. 2,019 121,897
----------
159,322
Electronic Components &
Accessories (6.39%)
Adaptec, Inc. 491(a) $ 11,170
Advanced Micro Devices, Inc. 729(a) 56,315
Altera Corp. 942(a) 96,025
Analog Devices, Inc. 1,674(a) 127,224
Conexant Systems, Inc. 1,028 49,987
Intel Corp. 15,847 2,118,544
Linear Technology Corp. 1,471 94,052
LSI Logic Corp. 1,461(a) 79,077
Maxim Integrated Products, Inc. 1,338(a) 90,900
Micron Technology, Inc. 2,624(a) 231,076
Molex, Inc. 929 44,708
National Semiconductor Corp. 835(a) 47,386
Novellus Systems Inc. 618(a) 34,956
Sanmina Corp. 630(a) 53,865
Solectron Corp. 2,804(a) 117,418
Texas Instruments, Inc. 7,744 531,916
Xilinx, Inc. 1,520(a) 125,495
----------
3,910,114
Engines & Turbines (0.01%)
Briggs & Stratton Corp. 106 3,631
Cummins Engine Co., Inc. 196 5,341
----------
8,972
Fabricated Rubber Products, NEC (0.01%)
Cooper Tire & Rubber Co. 349 3,883
Family Clothing Stores (0.27%)
Gap, Inc. 4,027 125,844
Nordstrom, Inc. 637 15,368
TJX Cos., Inc. 1,419 26,606
----------
167,818
Farm & Garden Machinery (0.07%)
Deere & Co. 1,107 40,959
Fats & Oils (0.05%)
Archer Daniels Midland Co. 2,850 27,966
Federal & Federally Sponsored
Credit (0.67%)
Federal National Mortgage Association 4,767 248,778
Freddie Mac 3,289 133,205
SLM Holdings Corp. (Non Voting) 741 27,741
----------
409,724
Finance Services (0.04%)
Cincinnati Financial Corp. 761 23,924
Fire, Marine & Casualty
Insurance (2.05%)
Aetna, Inc. 667 42,813
Allstate Corp. 3,421 76,117
American International Group, Inc. 7,261 853,167
Chubb Corp. 828 50,922
Cigna Corp. 771 72,089
Hartford Financial Services Group, Inc.1,017 56,888
Loews Corp. 466 27,960
Progressive Corp 345 25,530
SAFECO Corp. 604 12,005
St. Paul Cos., Inc. 1,004 34,262
----------
1,251,753
Forest Products (0.08%)
Weyerhaeuser Co. 1,102 47,386
Furniture & Home Furnishings
Stores (0.04%)
Bed Bath & Beyond, Inc. 665(a) $ 24,106
Gas Production & Distribution (0.31%)
Columbia Energy Group 382 25,069
Eastern Enterprises 128 8,064
El Paso Natural Gas 1,094 55,726
Nicor, Inc. 219 7,145
Oneok Inc. 138 3,579
Peoples Energy Corp. 166 5,374
Williams Cos., Inc. 2,091 87,168
----------
192,125
General Industrial Machinery (0.08%)
Ingersoll-Rand Co. 766 30,832
Pall Corp. 586 10,841
Timken Co. 288 5,364
----------
47,037
Glass & Glassware, Pressed or
Blown (0.59%)
Corning, Inc. 1,315 354,886
Owens-Illinois, Inc. 694(a) 8,111
----------
362,997
Gold & Silver Ores (0.12%)
Barrick Gold Corp. 1,872 34,047
Homestake Mining Co. 1,232 8,470
Newmont Mining Corp. 795 17,192
Placer Dome, Inc. 1,550 14,822
----------
74,531
Grain Mill Products (0.30%)
General Mills, Inc. 1,379 52,747
Kellogg Co. 1,919 57,090
Quaker Oats Co. 618 46,427
Ralston-Ralston Purina Group 1,451 28,929
----------
185,193
Greeting Cards (0.01%)
American Greetings Corp. 305 5,795
Groceries & Related Products (0.49%)
Safeway, Inc. 2,348(a) 105,954
SUPERVALU, Inc. 622 11,857
SYSCO Corp. 1,576 66,389
Unilever NV 2,705 116,315
----------
300,515
Grocery Stores (0.27%)
Albertson's, Inc. 2,004 66,633
Great Atlantic & Pacific Tea Co., Inc. 182 3,026
Kroger Co. 3,952(a) 87,191
Winn-Dixie Stores, Inc. 684 9,790
----------
166,640
Health & Allied Services, NEC (0.02%)
HEALTHSOUTH Corp. 1,824(a) 13,110
Heavy Construction, Except
Highway (0.01%)
McDermott International, Inc. 284 2,503
Highway & Street Construction (0.16%)
Halliburton Co. 2,101 $ 99,141
Hospitals (0.20%)
HCA - The Healthcare Corp. 2,639 80,160
Humana, Inc. 794(a) 3,871
Tenet Healthcare Corp. 1,480 39,960
----------
123,991
Hotels & Motels (0.09%)
Hilton Hotels Corp. 1,743 16,341
Marriott International, Inc., Class A 1,134 40,895
----------
57,236
Household Appliances (4.11%)
General Electric Co. 46,817(b) 2,481,300
Maytag Corp. 370 13,644
Whirlpool Corp. 345 16,086
----------
2,511,030
Household Furniture (0.03%)
Leggett & Platt, Inc. 930 15,345
Industrial Inorganic Chemicals (0.20%)
Air Products & Chemicals, Inc. 1,085 33,432
Eastman Chemical Co. 362 17,286
Great Lakes Chemical Corp. 258 8,127
Praxair, Inc. 746 27,928
Union Carbide Corp. 637 31,532
W.R. Grace & Co. 319(a) 3,868
----------
122,173
Industrial Machinery, NEC (0.03%)
Parker-Hannifin Corp. 530 18,153
Industrial Organic Chemicals (0.02%)
International Flavors & Fragrances, Inc. 486 14,671
Insurance Agents, Brokers &
Services (0.22%)
Marsh & McLennan Cos., Inc. 1,276 133,262
Jewelry, Silverware & Plated Ware (0.04%)
Tiffany & Co. 352 23,760
Knitting Mills (0.01%)
Russell Corp. 153 3,060
Life Insurance (0.22%)
American General Corp. 1,175 71,675
Jefferson-Pilot Corp. 487 27,485
Lincoln National Corp. 907 32,765
----------
131,925
Lumber & Construction Materials (0.01%)
Crane Co. 286 6,953
Lumber & Other Building
Materials (1.02%)
Home Depot, Inc. 10,948 546,716
Lowe's Cos., Inc. 1,809 74,282
----------
620,998
Machinery, Equipment & Supplies (0.02%)
Grainger (W.W.), Inc. 449 13,835
Management & Public Relations (0.08%)
Dun & Bradstreet Corp. 765 $ 21,898
Fluor Corp. 361 11,417
PerkinElmer, Inc. 232 15,341
----------
48,656
Measuring & Controlling Devices (0.80%)
Agilent Technologies, Inc. 2,143(a) 158,046
Allergan, Inc. 614 45,743
Eaton Corp. 344 23,048
Johnson Controls, Inc. 405 20,782
KLA-Tencor Corp. 880(a) 51,535
Mallinckrodt, Inc. 318 13,813
Millipore Corp. 218 16,432
PE Corp. - PE Biosystems Group 985 64,887
Tektronix, Inc. 228 16,872
Teradyne, Inc. 820(a) 60,270
Thermo Electron Corp. 738(a) 15,544
----------
486,972
Medical Instruments & Supplies (0.95%)
Bard (C.R.), Inc. 238 11,454
Baxter International, Inc. 1,373 96,539
Becton, Dickinson & Co. 1,194 34,253
Biomet, Inc. 560 21,525
Boston Scientific Corp. 1,929(a) 42,317
Guidant Corp. 1,450(a) 71,775
Medtronic, Inc. 5,664 282,138
St. Jude Medical, Inc. 396(a) 18,167
----------
578,168
Medical Service & Health
Insurance (0.38%)
AFLAC, Inc. 1,255 57,652
Aon Corp. 1,211 37,617
Conseco, Inc. 1,538 14,996
Torchmark Corp. 607 14,985
UnitedHealth Group, Inc. 769 65,941
UnumProvident Corp. 1,138 22,831
Wellpoint Health Networks 293(a) 21,224
----------
235,246
Men's & Boys' Furnishings (0.02%)
V.F. Corp. 541 12,883
Metal Cans & Shipping
Containers (0.02%)
Ball Corp. 140 4,506
Crown Cork & Seal Co., Inc. 607 9,105
----------
13,611
Metal Mining Services (0.01%)
Freeport-McMoRan Cooper &
Gold, Inc., Class B 757(a) 7,002
Metalworking Machinery (0.04%)
Black & Decker Corp. 403 15,842
Stanley Works 414 9,833
----------
25,675
Millwork, Plywood & Structural
Members (0.03%)
Georgia-Pacific Group 807 21,184
Miscellaneous Amusement, Recreation
Service (0.02%)
Harrahs Entertainment, Inc. 578(a) 12,102
Miscellaneous Business Services (0.14%)
Cendant Corp. 3,412(a) $ 47,768
Convergys Corp. 726(a) 37,661
----------
85,429
Miscellaneous Chemical Products (0.35%)
Du Pont (E.I.) De Nemours 4,956 216,825
Miscellaneous Converted Paper
Products (0.34%)
Avery Dennison Corp. 530 35,576
Bemis Co., Inc. 252 8,474
Minnesota Mining & Mfg. Co. 1,873 154,522
Pactiv Corp. 800(a) 6,300
----------
204,872
Miscellaneous Food & Kindred
Products (0.30%)
Bestfoods 1,299 89,956
Campbell Soup Co. 1,999 58,221
Starbucks Corp. 869(a) 33,185
----------
181,362
Miscellaneous Furniture &
Fixtures (0.05%)
Newell Rubbermaid, Inc. 1,261 32,471
Miscellaneous General Merchandise
Stores (0.01%)
Consolidated Stores Corp. 524(a) 6,288
Miscellaneous Manufacturers (0.62%)
Armstrong Holdings, Inc. 191 2,925
Tyco International Ltd. 7,988 378,431
----------
381,356
Miscellaneous Non-Metallic
Mineral Products (0.01%)
Owens Corning 262 2,424
Miscellaneous Personal Services (0.02%)
H&R Block, Inc. 465 15,054
Miscellaneous Plastics Products,
NEC (0.04%)
Sealed Air Corp. 396(a) 20,741
Tupperware Corp. 273 6,006
----------
26,747
Miscellaneous Shopping Goods
Stores (0.10%)
Office Depot, Inc. 1,496(a) 9,350
Staples, Inc. 2,291(a) 35,224
Toys `R' Us, Inc. 1,023(a) 14,897
----------
59,471
Miscellaneous Transportation
Equipment (0.01%)
FMC Corp. 143(a) 8,294
Mortgage Bankers & Brokers (0.03%)
Countrywide Credit Industries, Inc. 537 16,278
Motion Picture Production &
Services (2.20%)
Time Warner, Inc. 6,227 473,252
Viacom Inc., Class B 7,217(a) 492,109
Walt Disney Co. 9,833 381,643
----------
1,347,004
Motor Vehicles & Equipment (0.83%)
Dana Corp. 722 $ 15,297
Delphi Automotive Systems Corp. 2,664 38,795
Ford Motor Co. 5,703 245,229
General Motors Corp. 2,531 146,956
ITT Industries, Inc. 416 12,636
Navistar International Corp. 292(a) 9,070
PACCAR, Inc. 361 14,327
TRW, Inc 585 25,374
----------
507,684
Motor Vehicles, Parts & Supplies (0.04%)
Genuine Parts Co. 837 16,740
Visteon Corp. 747(a) 9,054
----------
25,794
Motorcycles, Bicycles & Parts (0.09%)
Harley Davidson, Inc. 1,436 55,286
Newspapers (0.36%)
Dow Jones & Co., Inc. 419 30,692
Gannett Co. 1,260 75,363
Knight-Ridder, Inc. 367 19,520
New York Times Co., Class A 803 31,719
Tribune Co. 1,811 63,385
----------
220,679
Nursing & Personal Care Facilities (0.01%)
Manor Care, Inc. 483(a) 3,381
Oil & Gas Field Services (0.44%)
Rowan Cos., Inc. 443(a) 13,456
Schlumberger Ltd. 2,691 200,816
TransOcean Sedco Forex, Inc. 996 53,224
----------
267,496
Operative Builders (0.02%)
Centex Corp. 281 6,604
Pulte Corp. 195 4,217
----------
10,821
Opthalmic Goods (0.03%)
Bausch & Lomb, Inc. 251 19,421
Ordnance & Accessories, NEC (0.08%)
Lockheed Martin Corp. 1,894 46,995
Paints & Allied Products (0.03%)
Sherwin-Williams Co. 775 16,420
Paper Mills (0.33%)
Fort James Corp. 974 22,524
Kimberly Clark Corp. 2,628 150,781
Potlatch Corp. 135 4,472
Westvaco Corp. 475 11,786
Willamette Industries, Inc. 524 14,279
----------
203,842
Paperboard Containers & Boxes (0.02%)
Temple-Inland, Inc. 248 10,416
Passenger Transportation
Arrangement (0.03%)
Sabre Group Holdings, Inc. 611(a) 17,414
Personal Credit Institutions (0.76%)
American Express Co. 6,322 $ 329,534
Capital One Financial Corp. 927 41,367
Household International Corp. 2,239 93,058
----------
463,959
Petroleum Refining (4.06%)
Amerada Hess Corp. 428 26,429
Ashland, Inc. 334 11,711
Chevron Corp. 3,103 263,173
Coastal Corp. 1,015 61,788
Conoco, Inc., Class B 2,954 72,558
Exxon Mobil Corp. 16,472 1,293,056
Phillips Petroleum Co. 1,202 60,926
Royal Dutch Petroleum Co. ADR 10,147 624,675
Sunoco, Inc. 418 12,305
Tosco Corp. 684 19,366
Unocal Corp. 1,149 38,061
----------
2,484,048
Photographic Equipment &
Supplies (0.26%)
Eastman Kodak Co. 1,465 87,168
Polaroid Corp. 212 3,829
Xerox Corp. 3,153 65,425
----------
156,422
Plastic Materials & Synthetics (0.13%)
Hercules, Inc. 506 7,116
PPG Industries, Inc. 824 36,514
Rohm & Haas Co. 1,029 35,501
----------
79,131
Plumbing & Heating, Except
Electric (0.06%)
Masco Corp. 2,123 38,347
Preserved Fruits & Vegetables (0.19%)
ConAgra, Inc. 2,329 44,397
H. J. Heinz Co. 1,667 72,931
----------
117,328
Primary Non-Ferrous Metal (0.31%)
Alcan Aluminium Ltd. 1,035 32,085
Alcoa, Inc. 4,089 118,580
Engelhard Corp. 604 10,306
Inco Ltd. 860(a) 13,223
Phelps Dodge Corp. 372 13,834
----------
188,028
Pulp Mills (0.14%)
Boise Cascade Corp. 271 7,012
International Paper Co. 2,260 67,364
Mead Corp. 486 12,272
----------
86,648
Radio & Television Broadcasting (0.20%)
Clear Channel Communications, Inc. 1,603(a) 120,225
Radio, Television & Computer
Stores (0.22%)
Best Buy, Inc. 967(a) 61,163
Circuit City Stores - Circuit City Group 962 31,926
Radioshack Corp. 884 41,880
----------
134,969
Railroads (0.30%)
Burlington Northern Santa Fe Corp. 2,027 46,494
CSX Corp. 1,034 21,908
Kansas City Southern Industries, Inc. 527 46,737
Norfolk Southern Corp. 1,813 $ 26,968
Union Pacific Corp. 1,173 43,621
----------
185,728
Research & Testing Services (0.01%)
Quintiles Transnational Corp. 545(a) 7,698
Residential Building Construction (0.01%)
Kaufman & Broad Home Corp. 227 4,497
Retail Stores, NEC (0.11%)
Costco Wholesale Corp. 2,114(a) 69,762
Rubber & Plastics Footwear (0.09%)
Nike, Inc. 1,294 51,517
Reebok International Ltd. 268(a) 4,271
----------
55,788
Sanitary Services (0.11%)
Allied Waste Industries, Inc. 894(a) 8,940
Waste Management, Inc. 2,939 55,841
----------
64,781
Savings Institutions (1.78%)
Charter One Financial, Inc. 991 22,793
Citigroup, Inc. 15,969 962,132
Golden West Financial Corp. 748 30,528
Washington Mutual, Inc. 2,592 74,844
----------
1,090,297
Sawmills & Planning Mills (0.01%)
Louisiana Pacific Corp. 492 5,351
Search & Navigation Equipment (0.05%)
Raytheon Co., Class B 1,608 30,954
Security & Commodity Services (0.10%)
Franklin Resources, Inc. 1,152 34,992
Price (T. Rowe) Associates, Inc. 572 24,310
----------
59,302
Security Brokers & Dealers (1.60%)
Bear Stearns Cos., Inc. 523 21,770
Charles Schwab Corp. 6,444 216,680
Lehman Brothers Holdings, Inc. 572 54,090
Merrill Lynch & Co., Inc. 1,836 211,140
Morgan Stanley Dean Witter & Co. 5,355 445,802
Paine Webber Group, Inc. 689 31,350
----------
980,832
Ship & Boat Building & Repairing (0.01%)
Brunswick Corp. 415 6,873
Soap, Cleaners & Toilet Goods (1.06%)
Alberto-Culver Co., Class B 264 8,069
Avon Products, Inc. 1,123 49,974
Clorox Co. 1,110 49,742
Colgate-Palmolive Co. 2,729 163,398
Ecolab, Inc. 616 24,063
Procter & Gamble Co. 6,156 352,430
----------
647,676
Special Industry Machinery (0.57%)
Applied Materials, Inc. 3,822(a) 346,369
Sugar & Confectionery Products (0.12%)
Hershey Foods Corp. 649 31,598
Wrigley (Wm.) Jr. Co. 541 43,381
----------
74,979
Surety Insurance (0.07%)
MBIA, Inc. 465 $ 22,407
MGIC Investment Corp. 500 22,750
----------
45,157
Telephone Communication (6.24%)
AT&T Corp. 17,889 565,740
Alltel Corp. 1,492 92,411
Bell Atlantic Corp. 7,315 371,693
BellSouth Corp. 8,904 379,533
CenturyTel, Inc. 664 19,090
Global Crossing Ltd. 4,173(a) 109,802
GTE Corp. 4,601 286,412
SBC Communications, Inc. 16,097 696,194
Sprint Corp. 4,148 211,548
Sprint PCS Group 4,330(a) 257,635
U.S. West, Inc. 2,402 205,972
Worldcom, Inc. 13,549(a) 621,560
----------
3,817,590
Tires & Inner Tubes (0.02%)
Goodyear Tire & Rubber Co. 740 14,800
Toys & Sporting Goods (0.06%)
Hasbro, Inc. 812 12,231
Mattel, Inc. 2,033 26,810
----------
39,041
Variety Stores (0.08%)
Dollar General Corp. 1,557 30,362
Kmart Corp. 2,276(a) 15,505
----------
45,867
Water Transportation of
Passengers (0.09%)
Carnival Corp. 2,861 55,790
Women's & Misses' Outerwear (0.01%)
Liz Claiborne, Inc. 259 9,130
Women's Clothing Stores (0.07%)
Limited, Inc. 2,033 43,964
----------
Total Common Stocks 59,168,753
Principal
Amount Value
Commercial Paper (2.87%)
Federal & Federally Sponsored
Credit (2.87%)
Investment in Joint Trading Account,
Student Loan Marketing Association;
6.57%; 7/3/2000 $1,757,535 $1,756,893
----------
Total Portfolio Investments (99.62%) 60,925,646
Cash and receivables, net of liabilities (0.38%) 229,561
----------
Total Net Assets (100.00%) $61,155,207
----------
(a) Non-income producing security - No dividend paid during the past twelve
months.
(b) Security or a portion of the security was pledged to cover margin
requirements for futures contracts. At the period end the value of
securities pledged amounted to $1,086,500.
UTILITIES ACCOUNT
Shares
Held Value
Common Stocks (92.10%)
Combination Utility Services (10.96%)
Citizens Communication Co. 39,296(a) $ 677,856
Constellation Energy Group 31,000 1,009,437
Montana Power Co. 17,400 614,438
NiSource, Inc. 27,600 514,050
Utilicorp United, Inc. 43,100 856,613
----------
3,672,394
Electric Services (46.06%)
AES Corp. 24,400(a) 1,113,250
Allegheny Energy, Inc. 20,900 572,138
Calpine Corp. 19,400(a) 1,275,550
Dominion Resources, Inc. 7,800 334,425
DQE, Inc. 24,500 969,281
Duke Energy Corp. 17,700 997,837
Edison International 22,000 451,000
Enron Corp. 17,400 1,122,300
FirstEnergy Corp. 12,700 296,862
FPL Group, Inc. 17,600 871,200
GPU, Inc. 10,900 294,981
Kansas City Power & Light Co. 27,200 612,000
Niagara Mohawk Holdings, Inc. 45,200(a) 629,975
NStar 15,900 646,931
Peco Energy Co. 24,200 975,563
Pinnacle West Capital Corp. 29,300 992,538
Potomac Electric Power Co. 39,200 980,000
Reliant Energy, Inc. 29,500 872,094
Scottish Power PLC 10,298 344,339
Southern Co. 27,700 645,756
TXU Corp. 14,700 433,650
----------
15,431,670
Electrical Industrial Apparatus (1.63%)
Ballard Power Systems, Inc. 3,867(a) 347,305
Capstone Turbine Corp. 4,429(a) 199,582
----------
546,887
Gas Production & Distribution (6.90%)
Columbia Energy Group 10,200 669,375
Dynegy, Inc. 14,800 1,011,025
MCN Energy Group, Inc. 11,266 240,811
New Jersey Resources Corp. 4,900 186,506
Peoples Energy Corp. 6,300 203,963
----------
2,311,680
Petroleum Refining (3.27%)
Coastal Corp. 18,000 1,095,750
Radio & Television
Broadcasting (2.80%)
Allegiance Telecom, Inc. 7,000(a) 448,000
Time Warner Telecom, Class A 7,600(a) 489,250
----------
937,250
Telegraph & Other
Communications (1.58%)
Level 3 Communications, Inc. 6,000(a) 528,000
Telephone Communication (18.90%)
AT&T Corp. 28,900 $ 913,963
AT&T Wireless Group 6,000(a) 167,250
Alltel Corp. 10,300 637,956
Bell Atlantic 12,400 630,075
GTE Corp. 10,200 634,950
Intermedia Communications 10,000(a) 297,500
NEXTLINK Communications, Class A 14,800(a) 561,475
RCN Corp. 19,500(a) 494,812
Sprint Corp. 13,000 663,000
Teligent, Inc. 11,700(a) 276,412
Vodafone AirTouch PLC ADR 13,900 575,981
VoiceStream Wireless Corp. 4,120(a) 479,143
----------
6,332,517
----------
Total Common Stocks 30,856,148
Preferred Stock (2.44%)
Electric Services (2.44%)
Alliant Energy Corp. 11,900 818,125
Principal
Amount Value
Bond (1.24%)
Motion Picture Production &
Services (1.24%)
Liberty Media Group Convertible Bond;
4.00%; 11/15/2029 $ 288,000(b) $ 414,720
Commercial Paper (4.78%)
Personal Credit Institutions (4.78%)
Investment in Joint Trading Account,
Student Loan Marketing Association;
6.57%; 7/3/2000 1,601,011 1,601,011
----------
Total Portfolio Investments (100.56%) 33,690,004
Cash and receivables, net of liabilities (-0.56%) (186,073)
Total Net Assets (100.00%) $33,503,931
----------
(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>
AGGRESSIVE GROWTH ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
------------------------- ---- --------------------------------------- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $23.89 $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..... 1.44 7.17 2.99 4.26 3.38 4.31
Total from Investment Operations 1.44 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.................... (.81) (1.60) (.96) (2.48) (1.80) (1.48)
Total Dividends and Distributions (.81) (1.60) (1.00) (2.52) (1.91) (1.61)
Net Asset Value, End of Period......................... $24.52 $23.89 $18.33 $16.30 $14.52 $12.94
Total Return........................................... 6.28%(b) 39.50% 18.95% 30.86% 28.05% 44.19%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $438,319 $379,062 $224,058 $149,182 $90,106 $33,643
Ratio of Expenses to Average Net Assets............. .73%(c) .77% .78% .82% .85% .90%
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ (.03)%(c) (.08)% .22% .29% 1.05% 1.34%
Portfolio Turnover Rate............................. 74.6%(c) 89.6% 155.6% 172.6% 166.9% 172.9%
ASSET ALLOCATION ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
------------------------ ---- --------------------------------------- ---- ----
Net Asset Value, Beginning of Period................... $13.23 $12.30 $11.94 $11.48 $11.11 $9.79
Income from Investment Operations:
Net Investment Income............................... .16 .35 .31 .30 .36 .40
Net Realized and Unrealized Gain on Investments..... .46 2.00 .76 1.72 1.06 1.62
Total from Investment Operations .62 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.................... (.22) (1.07) (.40) (1.26) (.69) (.30)
Total Dividends and Distributions (.22) (1.42) (.71) (1.56) (1.05) (.70)
Net Asset Value, End of Period......................... $13.63 $13.23 $12.30 $11.94 $11.48 $11.11
Total Return........................................... 4.80%(b) 19.49% 9.18% 18.19% 12.92% 20.66%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $92,769 $89,711 $84,089 $76,804 $61,631 $41,074
Ratio of Expenses to Average Net Assets............. .85%(c) .85% .89% .89% .87% .89%
Ratio of Net Investment Income to Average Net Assets 2.46%(c) 2.50% 2.51% 2.55% 3.45% 4.07%
Portfolio Turnover Rate............................. 73.8%(c) 86.7% 162.7% 131.6% 108.2% 47.1%
BALANCED ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
---------------- ----------------------------------------------- -------------------------------------- ---- ----
Net Asset Value, Beginning of Period................... $15.41 $16.25 $15.51 $14.44 $13.97 $11.95
Income from Investment Operations:
Net Investment Income............................... .23 .56 .49 .46 .40 .45
Net Realized and Unrealized Gain (Loss) on Investments (.11) (.19) 1.33 2.11 1.41 2.44
Total from Investment Operations .12 .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......................... $15.53 $15.41 $16.25 $15.51 $14.44 $13.97
Total Return........................................... .78%(b) 2.40% 11.91% 17.93% 13.13% 24.58%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $180,868 $209,747 $198,603 $133,827 $93,158 $45,403
Ratio of Expenses to Average Net Assets............. .59%(c) .58% .59% .61% .63% .66%
Ratio of Net Investment Income to Average Net Assets 2.86%(c) 3.36% 3.37% 3.26% 3.45% 4.12%
Portfolio Turnover Rate............................. 91.0%(c) 21.7% 24.2% 69.7% 22.6% 25.7%
* Six Months Ended June 30, 2000
See accompanying notes.
</TABLE>
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
BLUE CHIP ACCOUNT 2000* 1999(e)
----------------- ---- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $10.38 $10.15
Income from Investment Operations:
Net Investment Income............................... .03 .08
Net Realized and Unrealized Gain (Loss) on Investments (.36) .24
Total from Investment Operations (.33) .32
Less Dividends from Net Investment Income -- (.09)
Net Asset Value, End of Period......................... $10.05 $10.38
Total Return........................................... (3.18)%(b)1.15%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $6,524 $6,453
Ratio of Expenses to Average Net Assets............. .68%(c) .69%(c)
Ratio of Net Investment Income to Average Net Assets .56%(c) 1.33%(c)
Portfolio Turnover Rate............................. 108.09%(c) 16.2%(c)
BOND ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
------------ ---- -------------------------------------- ---- ----
Net Asset Value, Beginning of Period................... $10.89 $12.02 $11.78 $11.33 $11.73 $10.12
Income from Investment Operations:
Net Investment Income............................... .42 .81 .66 .76 .68 .62
Net Realized and Unrealized Gain (Loss) on Investments (.33) (1.12) .25 .44 (.40) 1.62
Total from Investment Operations .09 (.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......... $10.98 $10.89 $12.02 $11.78 $11.33 $11.73
Total Return........................................... .83%(b) (2.59)% 7.69% 10.60% 2.36% 22.17%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $111,707 $125,067 $121,973 $81,921 $63,387 $35,878
Ratio of Expenses to Average Net Assets............. .51%(c) .50% .51% .52% .53% .56%
Ratio of Net Investment Income to Average Net Assets 7.54%(c) 6.78% 6.41% 6.85% 7.00% 7.28%
Portfolio Turnover Rate............................. 53.4%(c) 40.1% 26.7% 7.3% 1.7% 5.9%
CAPITAL VALUE ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
--------------------- ---- -------------------------------------- ---- ----
Net Asset Value, Beginning of Period................... $30.74 $37.19 $34.61 $29.84 $27.80 $23.44
Income from Investment Operations:
Net Investment Income............................... .28 .78 .71 .68 .57 .60
Net Realized and Unrealized Gain (Loss) on Investments (2.35) (2.41) 3.94 7.52
5.826.69
Total from Investment Operations (2.07) (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......................... $28.67 $30.74 $37.19 $34.61 $29.84 $27.80
Total Return........................................... (6.73)%(b) (4.29)% 13.58% 28.53% 23.50% 31.91%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $287,547 $367,927 $385,724 $285,231 $205,019 $135,640
Ratio of Expenses to Average Net Assets............. .60%(c) .43% .44% .47% .49% .51%
Ratio of Net Investment Income to Average Net Assets 1.77%(c) 2.05% 2.07% 2.13% 2.06% 2.25%
Portfolio Turnover Rate............................. 134.1%(c) 43.4% 22.0% 23.4% 48.5% 49.2%
* Six Months Ended June 30, 2000
</TABLE>
FINANCIAL HIGHLIGHTS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
----------------------------- ---- -------------------------------------- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $10.26 $11.01 $10.72 $10.31 $10.55 $9.38
Income from Investment Operations:
Net Investment Income............................... .35 .71 .60 .66 .59 .60
Net Realized and Unrealized Gain (Loss) on Investment -- (.74) .28 .41 (.24) 1.18
Total from Investment Operations .35 (.03) .88 1.07 .35 1.78
Less Dividends from Net Investment Income ............. -- (.72) (.59) (.66) (.59) (.61)
Net Asset Value, End of Period......................... $10.61 $10.26 $11.01 $10.72 $10.31 $10.55
Total Return........................................... 3.41%(b) (.29)% 8.27% 10.39% 3.35% 19.07%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $119,416 $137,787 $141,317 $94,322 $85,100 $50,079
Ratio of Expenses to Average Net Assets............. .51%(c) .50% .50% .52% .52% .55%
Ratio of Net Investment Income to Average Net Assets 6.44%(c) 6.16% 6.15% 6.37% 6.46% 6.73%
Portfolio Turnover Rate............................. 1.7%(c) 19.7% 11.0% 9.0% 8.4% 9.8%
GROWTH ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
-------------- ---- -------------------------------------- ---- ----
Net Asset Value, Beginning of Period................... $23.56 $20.46 $17.21 $13.79 $12.43 $10.10
Income from Investment Operations:
Net Investment Income (Operating Loss).............. (.01) .14 .21 .18 .16 .17
Net Realized and Unrealized Gain on Investments..... .73 3.20 3.45 3.53 1.39 2.42
Total from Investment Operations .72 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.................... (2.58) (.10) (.20) (.10) (.03) (.09)
Excess Distributions from Capital Gains(d).......... -- -- -- (.01) -- --
Total Dividends and Distributions (2.58) (.24) (.41) (.29) (.19) (.26)
Net Asset Value, End of Period......................... $21.70 $23.56 $20.46 $17.21 $13.79 $12.43
Total Return........................................... 3.79%(b) 16.44% 21.36% 26.96% 12.51% 25.62%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $345,379 $345,882 $259,828 $168,160 $99,612 $42,708
Ratio of Expenses to Average Net Assets............. .60%(c) .45% .48% .50% .52% .58%
Ratio of Net Investment Income (Operating Loss)
to Average Net Assets............................. (.12)%(c) .67% 1.25% 1.34% 1.61% 2.08%
Portfolio Turnover Rate............................. 142.0%(c) 65.7% 9.0% 15.4% 2.0% 6.9%
HIGH YIELD ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
------------------ ---- -------------------------------------- ---- ----
Net Asset Value, Beginning of Period................... $7.44 $8.06 $8.90 $8.72 $8.39 $7.91
Income from Investment Operations:
Net Investment Income............................... .32 .72 .80 .76 .80 .76
Net Realized and Unrealized Gain (Loss) on Investments (.44) (.58) (.85) .18 .30.51
Total from Investment Operations (.12) .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......................... $7.32 $7.44 $8.06 $8.90 $8.72 $8.39
Total Return.......................................... (1.61)%(b) 1.76% (.56)% 10.75% 13.13% 16.08%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $13,411 $13,678 $14,043 $15,837 $13,740 $11,830
Ratio of Expenses to Average Net Assets............. .68%(c) .67% .68% .68% .70% .73%
Ratio of Net Investment Income to Average Net Assets 8.91%(c) 8.52% 8.68% 8.50% 9.21% 9.09%
Portfolio Turnover Rate............................. 137.48%(c) 93.8% 87.8% 32.0% 32.0% 35.1%
* Six Months Ended June 30, 2000
</TABLE>
See accompanying notes.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
INTERNATIONAL ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
--------------------- ---- -------------------------------------- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $15.95 $14.51 $13.90 $13.02 $10.72 $9.56
Income from Investment Operations:
Net Investment Income............................... .11 .48 .26 .23 .22 .19
Net Realized and Unrealized Gain on Investments..... .12 3.14 1.11 1.35 2.46 1.16
Total from Investment Operations .23 3.62 1.37 1.58 2.68 1.35
Less Dividends and Distributions:
Dividends from Net Investment Income................ (.03) (.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 (.03) (2.18) (.76) (.70) (.38) (.19)
Net Asset Value, End of Period......................... $16.15 $15.95 $14.51 $13.90 $13.02 $10.72
Total Return........................................... 1.42%(b) 25.93% 9.98% 12.24% 25.09% 14.17%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $210,079 $197,235 $153,588 $125,289 $71,682 $30,566
Ratio of Expenses to Average Net Assets............. .89%(c) .78% .77% .87% .90% .95%
Ratio of Net Investment Income to Average Net Assets 1.50%(c) 3.11% 1.80% 1.92% 2.28% 2.26%
Portfolio Turnover Rate............................. 93.8%(c) 65.5% 33.9% 22.7% 12.5% 15.6%
INTERNATIONAL SMALLCAP ACCOUNT 2000* 1999 1998(f)
------------------------------ ---- -------------------------
Net Asset Value, Beginning of Period................... $16.66 $9.00 $9.97
Income from Investment Operations:
Net Investment Income (Operating Loss).............. .04 (.02) .01
Net Realized and Unrealized Gain (Loss) on Investments (.01) 8.41 (.95)
Total from Investment Operations .03 8.39 (.94)
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- -- (.03)
Distributions from Capital Gains.................... (.11) (.73) --
Net Asset Value, End of Period......................... $16.58 $16.66 $9.00
Total Return........................................... .11%(b) 93.81% (10.37)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $58,776 $40,040 $13,075
Ratio of Expenses to Average Net Assets............. 1.26%(c) 1.32% 1.34%(c)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ .27%(c) (.28)% .24%(c)
Portfolio Turnover Rate............................. 353.5%(c) 241.2% 60.3%(c)
LARGECAP GROWTH ACCOUNT 2000* 1999(e)
----------------------- ---- ------------
Net Asset Value, Beginning of Period................... $13.26 $9.93
Income from Investment Operations:
Net Investment Income (Operating Loss)(g)........... (.05) (.03)
Net Realized and Unrealized Gain (Loss) on Investments 1.00 3.36
Total from Investment Operations .95 3.33
Net Asset Value, End of Period......................... $14.21 $13.26
Total Return........................................... 7.16%(b) 32.47%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $7,929 $7,045
Ratio of Expenses to Average Net Assets(g).......... 1.16%(c) 1.16%(c)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ (.69)%(c) (.47)%(c)
Portfolio Turnover Rate............................. 16.1%(c) 39.6%(c)
* Six Months Ended June 30, 2000
</TABLE>
FINANCIAL HIGHLIGHTS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
MICROCAP ACCOUNT 2000* 1999 1998(f)
---------------- ---- -------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $8.07 $8.17 $10.04
Income from Investment Operations:
Net Investment Income(g)............................ .02 .02 .03
Net Realized and Unrealized Gain (Loss) on Investments .89 (.11) (1.86)
Total from Investment Operations .91 (.09) (1.83)
Less Dividends from Net Investment Income.............. -- (.01) (.04)
Net Asset Value, End of Period......................... $8.98 $8.07 $8.17
Total Return.......................................... 11.28%(b) (1.07)% (18.42)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $8,536 $6,418 $5,384
Ratio of Expenses to Average Net Assets(g).......... 1.06%(c) 1.06% 1.38%(c)
Ratio of Net Investment Income to Average Net Assets 0.63%(c) 0.22% 0.57%(c)
Portfolio Turnover Rate............................. 71.9%(c) 88.9% 55.3%(c)
MIDCAP ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
-------------- ---- -------------------------------------- ---- ----
Net Asset Value, Beginning of Period .................. $36.90 $34.37 $35.47 $29.74 $25.33 $19.97
Income from Investment Operations:
Net Investment Income............................... .01 .12 .22 .24 .22 .22
Net Realized and Unrealized Gain on Investments..... 1.25 4.20 .94 6.48 5.07 5.57
Total from Investment Operations 1.26 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.................... (1.84) (1.67) (2.04) (.76) (.66) (.21)
Total Dividends and Distributions (1.84) (1.79) (2.26) (.99) (.88) (.43)
Net Asset Value, End of Period......................... $36.32 $36.90 $34.37 $35.47 $29.74 $25.33
Total Return........................................... 3.52%(b) 13.04% 3.69% 22.75% 21.11% 29.01%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $263,796 $262,350 $259,470 $224,630 $137,161 $58,520
Ratio of Expenses to Average Net Assets............. .62%(c) .61% .62% .64% .66% .70%
Ratio of Net Investment Income to Average Net Assets... .06%(c) .32% .63% .79% 1.07% 1.23%
Portfolio Turnover Rate............................. 129.4%(c) 79.6% 26.9% 7.8% 8.8% 13.1%
MIDCAP GROWTH ACCOUNT 2000* 1999 1998(f)
--------------------- ---- -------------------------
Net Asset Value, Beginning of Period................... $10.66 $9.65 $9.94
Income from Investment Operations:
Net Investment Income (Operating Loss)(g)........... .02 .02 (.01)
Net Realized and Unrealized Gain (Loss) on Investments .74 1.01 (.28)
Total from Investment Operations .76 1.03 (.29)
Less Dividends from Net Investment Income.............. -- (.02) --
Net Asset Value, End of Period......................... $11.42 $10.66 $9.65
Total Return........................................... 7.13%(b) 10.67% (3.40)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $19,364 $14,264 $8,534
Ratio of Expenses to Average Net Assets(g).......... .96%(c) .96% 1.27%(c)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ .32%(c) .26% (.14)%(c)
Portfolio Turnover Rate............................. 105.9%(c) 74.1% 91.9%(c)
* Six Months Ended June 30, 2000
See accompanying notes.
</TABLE>
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
MIDCAP VALUE ACCOUNT 2000* 1999(e)
-------------------- ---- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $11.11 $10.09
Income from Investment Operations:
Net Investment Income(g)............................ .01 .02
Net Realized and Unrealized Gain on Investments..... .77 1.24
Total from Investment Operations .78 1.26
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.02)
Distributions from Capital Gains.................... (.74) (.22)
Total from Dividends and Distributions (.74) (.24)
Net Asset Value, End of Period......................... $11.15 $11.11
Total Return........................................... 7.75%(b) 10.24%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $6.280 $5,756
Ratio of Expenses to Average Net Assets(g).......... 1.19%(c) 1.19%(c)
Ratio of Net Investment Income to Average Net Assets .20%(c) .30%(c)
Portfolio Turnover Rate............................. 183.0%(c) 154.0%(c)
MONEY MARKET ACCOUNT(a) 2000* 1999 1998 1997 1996 1995
-------------------- ---- -------------------------------------- ---- ----
Net Asset Value, Beginning of Period................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Income from Investment Operations:
Net Investment Income............................... .028 .048 .051 .051 .049 .054
Less Dividends from Net Investment Income.............. (.028) (.048) (.051) (.051) (.049) (.054)
Net Asset Value, End of Period......................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Total Return........................................... 2.82%(b) 4.84% 5.20% 5.04% 5.07% 5.59%
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $104,304 $120,924 $83,263 $47,315 $46,244 $32,670
Ratio of Expenses to Average Net Assets............. 0.52%(c) .52% .52% .55% .56% .58%
Ratio of Net Investment Income to Average Net Assets 5.64%(c) 4.79% 5.06% 5.12% 5.00% 5.32%
REAL ESTATE ACCOUNT 2000* 1999 1998(f)
------------------- ---- -------------------------
Net Asset Value, Beginning of Period................... $8.20 $9.07 $10.01
Income from Investment Operations:
Net Investment Income............................... .22 .43 .32
Net Realized and Unrealized Gain (Loss) on Investments .99 (.85) (.97)
Total from Investment Operations 1.21 (.42) (.65)
Less Dividends from Net Investment Income.............. (.01) (.45) (.29)
Net Asset Value, End of Period......................... $9.40 $8.20 $9.07
Total Return........................................... 14.75%(b) (4.48)% (6.56)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $13,182 $10,560 $10,909
Ratio of Expenses to Average Net Assets............. .99%(c) .99% 1.00%(c)
Ratio of Net Investment Income to Average Net Assets 5.22%(c) 4.92% 5.40%(c)
Portfolio Turnover Rate............................. 89.3%(c) 101.9% 5.6%(c)
* Six Months Ended June 30, 2000
</TABLE>
FINANCIAL HIGHLIGHTS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Selected data for a share of Capital Stock outstanding throughout each year
ended December 31 (except as noted):
<TABLE>
<CAPTION>
SMALLCAP ACCOUNT 2000* 1999 1998(f)
---------------- ---- -------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period................... $10.74 $8.21 $10.27
Income from Investment Operations:
Net Investment Income............................... .01 -- --
Net Realized and Unrealized Gain (Loss) on Investments 1.02 3.52 (2.06)
Total from Investment Operations 1.03 3.52 (2.06)
Less Distributions from Capital Gains.................. (.85) (.99) --
Net Asset Value, End of Period......................... $10.92 $10.74 $8.21
Total Return........................................... 10.07%(b) 43.58% (20.51)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $35,880 $26,110 $12,094
Ratio of Expenses to Average Net Assets............. .89%(c) .91% .98%(c)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ .23%(c) .05% (.05)%(c)
Portfolio Turnover Rate............................. 127.4%(c) 111.1% 45.2%(c)
SMALLCAP GROWTH ACCOUNT 2000* 1999 1998(f)
----------------------- ---- -------------------------
Net Asset Value, Beginning of Period................... $19.56 $10.10 $9.84
Income from Investment Operations:
Net Investment Income (Operating Loss)(g)........... (.05) (.05) (.04)
Net Realized and Unrealized Gain on Investments..... 2.99 9.70 .30
Total from Investment Operations 2.94 9.65 .26
Less Distributions from Capital Gains.................. (.35) (.19) --
Net Asset Value, End of Period......................... $22.15 $19.56 $10.10
Total Return........................................... 15.23%(b) 95.69% 2.96%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $83,536 $39,675 $8,463
Ratio of Expenses to Average Net Assets(g).......... 1.02%(c) 1.05% 1.31%(c)
Ratio of Net Investment Income (Operating Loss) to
Average Net Assets................................ (.63)%(c) (.61)% (.80)%(c)
Portfolio Turnover Rate............................. 71.26%(c) 98.0% 166.5%(c)
SMALLCAP VALUE ACCOUNT 2000* 1999 1998(f)
---------------------- ---- -------------------------
Net Asset Value, Beginning of Period................... $10.06 $8.34 $9.84
Income from Investment Operations:
Net Investment Income(g)............................ .05 .06 .03
Net Realized and Unrealized Gain (Loss) on Investments .44 1.72 (1.50)
Total from Investment Operations .49 1.78 (1.47)
Less Dividends from Net Investment Income.............. -- (.06) (.03)
Net Asset Value, End of Period......................... $10.55 $10.06 $8.34
Total Return........................................... 4.87%(b) 21.45% (15.06)%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $13,367 $11,080 $6,895
Ratio of Expenses to Average Net Assets(g).......... 1.16%(c) 1.16% 1.56%(c)
Ratio of Net Investment Income to Average Net Assets .98%(c) .82% .73%(c)
Portfolio Turnover Rate............................. 196.18%(c) 89.7% 53.4%(c)
* Six Months Ended June 30, 2000
See accompanying notes.
</TABLE>
Selected data for a share of Capital Stock outstanding throughout the periods
ended December 31 (except as noted):
<TABLE>
<CAPTION>
STOCK INDEX 500 ACCOUNT 2000* 1999(e)
----------------------- ---- ----
<S> <C> <C> <C>
Net Asset Value, Beginning of Period................... $10.71 $9.83
Income from Investment Operations:
Net Investment Income(g)............................ .05 .06
Net Realized and Unrealized Gain (Loss) on Investments (.12) .97
Total from Investment Operations (.07) 1.03
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.07)
Distributions from Capital Gains.................... (.06) (.08)
Total from Dividends and Distributions (.06) (.15)
Net Asset Value, End of Period......................... 10.58 $10.71
Total Return........................................... (.65)%(b) 8.93%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ 61,155 46,088
Ratio of Expenses to Average Net Assets(g).......... .40%(c) .40%(c)
Ratio of Net Investment Income to Average Net Assets 1.03%(c) 1.41%(c)
Portfolio Turnover Rate............................. 2.54%(c) 3.8%(c)
UTILITIES ACCOUNT 2000* 1999 1998(f)
----------------- ---- -------------------------
Net Asset Value, Beginning of Period................... $10.90 $10.93 $9.61
Income from Investment Operations:
Net Investment Income............................... .12 .23 .15
Net Realized and Unrealized Gain on Investments..... .01 .02 1.35
Total from Investment Operations .13 .25 1.50
Less Dividends and Distributions:
Dividends from Net Investment Income................ -- (.23) (.18)
Distributions from Captial Gains.................... (.14) (.05) --
Total Dividends and Distributions (.14) (.28) (.18)
Net Asset Value, End of Period......................... $10.89 $10.90 $10.93
Total Return........................................... 1.12%(b) 2.29% 15.36%(b)
Ratio/Supplemental Data:
Net Assets, End of Period (in thousands)............ $33,504 $30,684 $18,298
Ratio of Expenses to Average Net Assets............. .63%(c) .64% .69%(c)
Ratio of Net Investment Income to Average Net Assets 2.31%(c) 2.52% 2.93%(c)
Portfolio Turnover Rate............................. 161.55%(c) 23.0% 9.5%(c)
* Six Months Ended June 30, 2000
</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
FINANCIAL HIGHLIGHTS (Continued)
PRINCIPAL VARIABLE CONTRACTS FUND, INC.
Notes to Financial Highlights (Continued)
(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.
Date Net Per Share Realized
Operations Investment and Unrealized
Account Commenced Income Gains (Losses)
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)
(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.
Date Net Per Share Realized
Operations Investment and Unrealized
Account Commenced Income Gains (Losses)
International SmallCap AccountApril 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)
(g) Without the Managers voluntary waiver of a portion of certain of its
expenses (see Note 3 to the financial statements) for the periods
indicated, the following accounts would have had per share net investment
income and the ratios of expenses to average net assets as shown:
<TABLE>
<CAPTION>
Per Share Ratio of Expenses
Periods Ended Net Investment to Average Net Amount
Account June 30 Income (Loss) Assets Waived
<S> <C> <C> <C> <C>
LargeCap Growth Account 2000 $(.02) 1.20% $1,476
MicroCap Account 2000 .03 1.25 6,821
MidCap Growth Account 2000 .01 1.11 6,055
MidCap Value Account 2000 .01 1.22 788
SmallCap Value Account 2000 .05 1.33 10,461
Stock Index 500 Account 2000 .05 .41 2,121
</TABLE>
MM 1291-5
