<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
Commission File Number 1-3053
CHAMPION INTERNATIONAL CORPORATION
SAVINGS PLAN #077
SAVINGS PLAN FOR HOURLY EMPLOYEES #158
(Full title of the plans)
Champion International Corporation
One Champion Plaza
Stamford, Connecticut 06921
(Name of issuer of securities held pursuant to
the plans and address of its
principal executive office)
================================================================================
<PAGE>
FINANCIAL STATEMENTS AND EXHIBIT
- --------------------------------
(a) Financial Statements and Schedules
----------------------------------
Champion International Corporation Savings Plan #077:
Report of Independent Public Accountants
Statement of Net Assets Available for Benefits as of December 31, 1998
Statement of Net Assets Available for Benefits as of December 31, 1997
Statement of Changes in Net Assets Available for Benefits for the Year
Ended December 31, 1998
Notes to Financial Statements - December 31, 1998 and 1997
Schedule I - Item 27(a) Schedule of Assets Held for Investment Purposes -
December 31, 1998
Schedule II - Item 27(d) Schedule of Reportable Transactions for the Year
Ended December 31, 1998
Schedule III - Certification of Receipt of Annual Statement of Assets And
Liabilities of Commingled Trust Funds - Supplement to Item 27(a) -
Schedule of Assets Held for Investment Purposes
All Schedules not listed above are omitted since they are not applicable, not
required or the information is included in the Plan's Financial Statements
or Notes to Financial Statements listed above.
Champion International Corporation Savings Plan for Hourly Employees #158:
Report of Independent Public Accountants
Statement of Net Assets Available for Benefits as of December 31, 1998
Statement of Net Assets Available for Benefits as of December 31, 1997
Statement of Changes in Net Assets Available for Benefits for the Year
Ended December 31, 1998
Notes to Financial Statements - December 31, 1998 and 1997
Schedule I - Item 27(a) Schedule of Assets Held for Investment Purposes -
December 31, 1998
Schedule II - Item 27(d) Schedule of Reportable Transactions for the Year
Ended December 31, 1998
Schedule III - Certification of Receipt of Annual Statement of Assets And
Liabilities of Commingled Trust Funds - Supplement to Item 27(a) -
Schedule of Assets Held for Investment Purposes
All Schedules not listed above are omitted since they are not applicable, not
required or the information is included in the Plan's Financial Statements
or Notes to Financial Statements listed above.
(b) Exhibit
-------
Exhibit 23 - Consent of Independent Public Accountants
-2-
<PAGE>
SIGNATURES
The Plans. Pursuant to the requirements of the Securities Exchange Act of
1934, the Pension and Employee Benefits Committee, the administrator of the
registrant's plans described herein, has duly caused this Annual Report to be
signed on its behalf by the undersigned, thereunto duly authorized.
CHAMPION INTERNATIONAL CORPORATION
SAVINGS PLAN #077
SAVINGS PLAN FOR HOURLY EMPLOYEES #158
By /s/ William C. Foster
-----------------------------------------------
(William C. Foster)
Senior Associate Counsel - Employee
Relations/Human Resources
June 21, 1999
-3-
<PAGE>
CHAMPION INTERNATIONAL CORPORATION
SAVINGS PLAN #077
FEIN: 13-1427390
FINANCIAL STATEMENTS
AS OF
DECEMBER 31, 1998 AND 1997
TOGETHER WITH
AUDITORS' REPORT
-1-
<PAGE>
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Table of Contents
<TABLE>
<CAPTION>
Page(s)
------------
<S> <C>
Report of Independent Public Accountants 1-2
Statement of Net Assets Available for Benefits as of
December 31, 1998 3
Statement of Net Assets Available for Benefits as of
December 31, 1997 4
Statement of Changes in Net Assets Available
for Benefits for the Year Ended December 31, 1998 5-6
Notes to Financial Statements - 7-14
December 31, 1998 and 1997
Schedule I - Item 27 (a) - Schedule of Assets Held for Investment
Purposes - December 31, 1998 15-20
Schedule II - Item 27 (d) - Schedule of Reportable Transactions for
the Year Ended December 31, 1998 21-22
Schedule III - Certification of Receipt of Annual Statement of Assets
And Liabilities of Commingled Trust Funds - Supplement to Item 27(a) 23-42
- Schedule of Assets Held for Investment Purposes
</TABLE>
<PAGE>
Report of Independent Public Accountants
----------------------------------------
To the Board of Directors and the
Pension and Employee Benefits Committee of
Champion International Corporation:
We have audited the accompanying statements of net assets available for
benefits of the CHAMPION INTERNATIONAL CORPORATION SAVINGS PLAN #077 as of
December 31, 1998 and 1997 and the related statement of changes in net assets
available for benefits for the year ended December 31, 1998. These financial
statements and the schedules referred to below are the responsibility of the
Plan Administrator. Our responsibility is to express an opinion on these
financial statements and schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
Plan Administrator, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Plan as
of December 31, 1998 and 1997, and the changes in net assets available for
benefits for the year ended December 31, 1998, in conformity with generally
accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes as of December 31, 1998 and of reportable transactions
for the year ended December 31, 1998 are presented for the purpose of additional
analysis and are not a required part of the basic financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Security
Act of 1974. The fund information in the statements of net assets available for
benefits and the statement of changes in net
-1-
<PAGE>
assets available for benefits is presented for purposes of additional analysis
rather than to present the net assets available for benefits and changes in net
assets available for benefits of each fund. The supplemental schedules and fund
information have been subjected to the auditing procedures applied in the audit
of the basic financial statements, and, in our opinion, are fairly stated in all
material respects in relation to the financial statements taken as a whole. As
explained in the notes thereto, information certified by the trustee and
presented in the schedules of investments and reportable transactions does not
disclose the historical cost of certain investments. Disclosure of this
information is required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974.
/s/ ARTHUR ANDERSEN LLP
Cincinnati, Ohio
May 24, 1999
-2-
<PAGE>
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Statement of Net Assets Available for Benefits
December 31, 1998
<TABLE>
<CAPTION>
Company Directed Participant Directed
-------------------------------- ------------------------------------------
Company Company Stable S&P 500
Individual Stock Stock Value Index
Retirement Fund Fund Fund Fund Fund
----------------- ------------- ----------- ----------- -----------
INVESTMENTS (Notes 1, 2, 3, & 4):
<S> <C> <C> <C> <C> <C>
Common Stock, Champion International Corporation $ - $89,093,137 $17,139,497 $ _ $ -
Master Trust - 2,123,127 - - -
Stock Funds - - - - 238,505,454
Fixed Income Investment Contracts - - - 132,754,049 -
Synthetic Investment Contracts - - - 200,896,740 -
Cash and Short Term Investments - 2,017,454 381,161 6,506,626 -
Loans Receivable From Participants - - - - -
------------ ------------ ------------ ------------- -------------
- 93,233,718 17,520,658 340,157,415 238,505,454
------------ ------------ ------------ ------------- -------------
RECEIVABLES (PAYABLES):
Accrued Dividend and Interest Income - 113,937 21,799 27,352 10,675
Accrued Expenses - (13,450) (2,516) (21,089) (18,965)
Pending Transactions - 10,311 - - -
Interfund Receivable (Payable) 8,499,528 - - (8,499,528) -
------------ ------------ ------------ ------------- -------------
8,499,528 110,798 19,283 (8,493,265) (8,290)
------------ ------------ ------------ ------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS $8,499,528 $93,344,516 $17,539,941 $331,664,150 $238,497,164
============ ============ ============ ============= =============
<CAPTION>
Participant Directed
------------------------------------------------------
Int'l.
Small Company Equities Index Employee Loan
Index Fund Fund Fund Total
----------------- ---------------- --------------- ------------
INVESTMENTS (Notes 1, 2, 3, & 4):
<S> <C> <C> <C> <C>
Common Stock, Champion International Corporation $ - $ - $ - $106,232,634
Master Trust - - - 2,123,127
Stock Funds 27,731,810 15,607,667 - 281,844,931
Fixed Income Investment Contracts - - - 132,754,049
Synthetic Investment Contracts - - - 200,896,740
Cash and Short Term Investments 44 43 - 8,905,328
Loans Receivable From Participants - - 17,051,926 17,051,926
------------- ------------- ------------- -------------
27,731,854 15,607,710 17,051,926 749,808,735
------------- ------------- ------------- -------------
RECEIVABLES (PAYABLES):
Accrued Dividend and Interest Income 7,559 - - 181,322
Accrued Expenses (2,510) (1,083) - (59,613)
Pending Transactions - - - 10,311
Interfund Receivable (Payable) - - - -
------------- ------------- ------------- -------------
5,049 (1,083) - 132,020
------------- ------------- ------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS $27,736,903 $15,606,627 $17,051,926 $749,940,755
============= ============= ============= =============
</TABLE>
The accompanying notes to financial statements
are an integral part of these statements.
-3-
<PAGE>
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Statement of Net Assets Available for Benefits
December 31, 1997
<TABLE>
<CAPTION>
Company Directed Participant Directed
-------------------------------- ----------------------------------------
Company Company Stable S&P 500
Individual Stock Stock Value Index
Retirement Fund Fund Fund Fund Fund
----------------- ---------- ----------- ----------- -----------
INVESTMENTS (Notes 1,2,3, & 4):
<S> <C> <C> <C> <C> <C>
Common Stock, Champion International Corporation $ - $103,314,691 $7,926,817 $ - $ -
Master Trust - 2,557,166 - - -
Stock Funds - - - - 209,060,441
Fixed Income Investment Contracts - - - 150,524,447 -
Synthetic Investment Contracts - - - 189,176,822 -
Cash and Short Term Investments - 2,330,754 153,660 1,539,568 -
Loans Receivable From Participants - - - - -
------------- -------------- ----------- ------------- -------------
- 108,202,611 8,080,477 341,240,837 209,060,441
------------- -------------- ----------- ------------- -------------
RECEIVABLES (PAYABLES):
Accrued Dividend and Interest Income - 122,978 9,341 - -
Pending Transactions - (495,600) (30,699) (37,354) (7,951)
Interfund Receivable (Payable) 8,989,713 - - (8,989,713) -
------------- -------------- ----------- ------------- -------------
8,989,713 (372,622) (21,358) (9,027,067) (7,951)
------------- -------------- ----------- ------------- -------------
DUE FROM CHAMPION INTERNATIONAL CORPORATION SAVINGS
PLAN FOR HOURLY EOMPLOYEES #158 (Note 7)
- 272,356 - 1,388,774 363,078
------------- -------------- ----------- ------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS $8,989,713 $108,102,345 $8,059,119 $333,602,544 $209,415,568
------------- -------------- ----------- ------------- -------------
<CAPTION>
Participant Directed
-------------------------------------------------
Int'l.
Small Company Equities Index Employee Loan
Index Fund Fund Fund Total
--------------- -------------- ------------ -------------
INVESTMENTS (Notes 1,2,3, & 4):
<S> <C> <C> <C> <C>
Common Stock, Champion International Corporation $ - $ - $ - $111,241,508
Master Trust - - - 2,557,166
Stock Funds 28,823,229 13,340,512 - 251,224,182
Fixed Income Investment Contracts - - - 150,524,447
Synthetic Investment Contracts - - - 189,176,822
Cash and Short Term Investments 44 43 - 4,024,069
Loans Receivable From Participants - - 20,361,724 20,361,724
------------- ------------- ------------- -------------
28,823,273 13,340,555 20,361,724 729,109,918
------------- ------------- ------------- -------------
RECEIVABLES (PAYABLES):
Accrued Dividend and Interest Income - - - 132,319
Pending Transactions 641 (1,123) - (572,086)
Interfund Receivable (Payable) - - - -
------------- ------------- ------------- -------------
641 (1,123) - (439,767)
------------- ------------- ------------- -------------
DUE FROM CHAMPION INTERNATIONAL CORPORATION SAVINGS
PLAN FOR HOURLY EOMPLOYEES #158 (Note 7) 4,554 3,591 - 2,032,353
------------- ------------- ------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS $28,828,468 $13,343,023 $20,361,724 $730,702,504
============= ============= ============= =============
</TABLE>
The accompanying notes to financial statements
are an integral part of these statements.
-4-
<PAGE>
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Company Directed Participant Directed
--------------------------------------- ----------------------------------------
Individual
Retirement Fund Company Stock Fund Company Stock Fund Stable Value Fund
----------------- -------------------- -------------------- -------------------
<S> <C> <C> <C> <C>
CONTRIBUTIONS (Note 1):
Company $ - $ 8,532,121 $ - $ -
Employees - - 426,320 12,575,325
-------------- --------------- --------------- -------------
- 8,532,121 426,320 12,575,325
-------------- --------------- --------------- -------------
INVESTMENT INCOME (Notes 1, 2 , 3 & 4)
Dividends and Interest 608,309 520,934 63,100 23,266,157
Net Realized and Unrealized Gain/(Loss) on - (10,441,062) 406,760 -
Investments
Master Trust - (243,419) - -
-------------- --------------- --------------- -------------
608,309 (10,163,547) 469,860 23,266,157
-------------- --------------- --------------- -------------
WITHDRAWALS:
Company Contributions - (8,805,486) - -
Employee Contributions (1,098,494) - (555,493) (42,169,635)
Master Trust - (190,620) - -
-------------- --------------- --------------- -------------
(1,098,494) (8,996,106) (555,493) (42,169,635)
-------------- --------------- --------------- -------------
CONTRIBUTIONS AND INVESTMENT INCOME OVER (490,185) (10,627,532) 340,687 (6,328,153)
(UNDER) WITHDRAWALS -------------- --------------- --------------- -------------
TRANSFERS (TO) FROM OTHER PLANS:
Newsprint System Divestiture (Note 8) - (3,102,590) (194,464) (10,285,723)
Fort James Corporation (Note 9) - - - 1,426,059
Transfer from Champion International
Corporation Savings Plan #158, less prior - 95,611 9,906 (96,053)
year accrual (Note 7) -------------- --------------- --------------- -------------
- (3,006,979) (184,558) (8,955,717)
-------------- --------------- --------------- -------------
TRANSFER BETWEEN FUNDS - (1,123,318) 9,324,693 13,345,476
NET ASSETS AVAILABLE FOR BENEFITS, beginning of 8,989,713 108,102,345 8,059,119 333,602,544
year -------------- --------------- --------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS, end of year $ 8,499,528 $ 93,344,516 $17,539,941 $331,664,150
============== =============== =============== =============
<CAPTION>
Participant Directed
----------------------------------------------------------------------------
S&P 500 Index Small Company Int'l Equities Employee
Fund Index Fund Index Fund Loan Fund Total
----------- --------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
CONTRIBUTIONS (Note 1):
Company $ - $ - $ - $ - $ 8,532,121
Employees 13,940,306 3,064,570 1,723,820 - 31,730,341
--------------- -------------- ------------- ------------ -------------
13,940,306 3,064,570 1,723,820 - 40,262,462
--------------- -------------- ------------- ------------ -------------
INVESTMENT INCOME (Notes 1, 2 , 3 & 4)
Dividends and Interest - - - 1,814,467 26,272,967
Net Realized and Unrealized Gain/(Loss) on 55,273,290 1,928,356 2,526,990 - 49,694,334
Investments
Master Trust - - - - (243,419)
--------------- -------------- ------------- ------------ -------------
55,273,290 1,928,356 2,526,990 1,814,467 75,723,882
--------------- -------------- ------------- ------------ -------------
WITHDRAWALS:
Company Contributions - - - (1,138,954) (9,944,440)
Employee Contributions (18,087,021) (2,924,327) (1,013,981) - (65,848,951)
Master Trust - - - - (190,620)
--------------- -------------- ------------- ------------ -------------
(18,087,021) (2,924,327) (1,013,981) (1,138,954) (75,984,011)
--------------- -------------- ------------- ------------ -------------
CONTRIBUTIONS AND INVESTMENT INCOME OVER 51,126,575 2,068,599 3,236,829 675,513 40,002,333
(UNDER) WITHDRAWALS --------------- -------------- ------------- ------------ -------------
TRANSFERS (TO) FROM OTHER PLANS:
Newsprint System Divestiture (Note 8) (6,850,821) (691,845) (461,820) (1,028,755) (22,616,018)
Fort James Corporation (Note 9) - - - - 1,426,059
Transfer from Champion International
Corporation Savings Plan #158, less prior 381,974 24,421 10,018 - 425,877
year accrual (Note 7) --------------- -------------- ------------- ------------ -------------
(6,468,847) (667,424) (451,802) (1,028,755) (20,764,082)
--------------- -------------- ------------- ------------ -------------
TRANSFER BETWEEN FUNDS (15,576,132) (2,492,740) (521,423) (2,956,556) -
NET ASSETS AVAILABLE FOR BENEFITS, beginning of 209,415,568 28,828,468 13,343,023 20,361,724 730,702,504
year --------------- -------------- ------------- ------------ -------------
NET ASSETS AVAILABLE FOR BENEFITS, end of year $238,497,164 $27,736,903 $15,606,627 $17,051,926 $749,940,755
=============== ============== ============= ============ =============
</TABLE>
-5-
<PAGE>
The accompanying notes to financial statements are an integral part of these
statements.
-6-
<PAGE>
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Notes to Financial Statements
December 31, 1998 and 1997
(1) Plan Description-
----------------
The following description of the Champion International Corporation Savings
Plan #077 (the Plan) provides only general information. Reference should be
made to the Plan agreement for a more complete description of the Plan's
provisions.
The Plan, which became effective on January 1, 1978, is a contributory
savings plan available to salaried employees of Champion International
Corporation (the Company). Effective January 1, 1983, a 401(k) savings
option was available to participants allowing them to contribute before-tax
compensation in addition to the after-tax compensation allowed previously.
Participants may contribute up to a maximum of 16% (22% effective January 1,
1999) of their compensation, subject to certain limitations. Qualified
participant contributions are invested in either the Company Common Stock
Fund, Stable Value Fund, the S&P 500 Index Fund, the Small Company Index Fund
or the International Equities Index Fund, at the participants' discretion.
Earnings for the funds are based upon the performance of the funds'
underlying assets.
The Company matches one-half of the first 6% of the participants'
compensation which is contributed to the Plan. Company contributions are
invested in the Company's common stock. Participants vest in the Company
contribution based upon years of service with the Company.
Participants are permitted to borrow against their account balances and their
vested portions of the Company stock fund contributions. The terms and
conditions of these loans are established to be in compliance with applicable
laws and regulations. The interest rate charged to participants in 1998 and
1997 was prime at origination plus 1%. Principal and interest are paid
ratably through monthly payroll deductions.
-7-
<PAGE>
Effective January 1, 1982, tax deductible employee contributions could be
directed into an individual retirement fund. Earnings for this fund have
averaged 7.21% per annum for 1998 and 7.28% per annum for 1997. After
December 31, 1982, employee contributions to this fund were no longer
accepted. The balance in this fund was approximately $8.5 million and $9.0
million at December 31, 1998 and 1997, respectively.
Effective June 30, 1995, Champion International Corporation Stock Ownership
Plan #078 (Plan #078) was merged into the Champion International Corporation
Savings Plan #077 and the Champion International Corporation Savings Plan for
Hourly Employees #158 (Plan #158), as applicable. The net assets of Plan
#078 were transferred to a Master Trust for which State Street Bank and Trust
Company now acts as trustee. Assets of the Master Trust consist of shares of
the Company's common stock, the valuation of which is based on market prices.
Benefit payments are credited and charged directly to each plan. Investment
income of the Master Trust, which includes dividend income and realized and
unrealized gains and losses, is allocated to each plan by the trustee based
upon the Master Trust units of participation held by each plan. As of
December 31, 1998 and 1997, the Plan's investment approximated 35% of the
assets held in the Master Trust.
The Plan is administered by the Company through the Pension and Employee
Benefits Committee (PEBC) and is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA). Certain investment
management expenses are paid by the Plan while other administrative expenses
are paid by the Company and are not included in the accompanying statements.
The Plan's trustee is State Street Bank and Trust Company. ADP Administrative
Solutions Group (formerly known as William M. Mercer, Inc.) performs certain
administrative and record keeping functions of the Plan. Participants have
the ability to initiate transactions directly impacting their account
balances over the telephone. Such transactions are posted to participants'
accounts on a daily basis at the applicable investment fund's net asset value
as reported by the trustee.
J.P. Morgan/American Century Retirement Plan Services were appointed Trustee
and participant record keeper effective July 1, 1999.
-8-
<PAGE>
(2) Significant Accounting Policies-
-------------------------------
(a) Investment Valuation and Income Recognition--Cash and cash equivalents
-------------------------------------------
are stated at cost which approximates market value. The Company's common
stock is valued at the closing market price at yearend. Investments in
fixed income investment contracts and synthetic investment contracts are
valued at the contract ("book") value, defined as the sum of
contributions less withdrawals plus credited interest. Commingled funds
are stated at market value as determined by the trustee. Loans receivable
from participants are valued at cost which approximates fair value.
Realized and unrealized gains and losses are reflected currently in the
statements of changes in net assets available for benefits.
(b) Basis of Accounting--The Plan uses the accrual basis of accounting.
-------------------
(c) Payment of Benefits--Benefits are recorded when paid.
-------------------
(d) Use of Estimates--The preparation of financial statements in conformity
----------------
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the financial statements. Actual
results could differ from those estimates.
(e) Reclassifications--Certain amounts in the 1997 financial statements have
-----------------
been reclassified to conform with the 1998 presentation.
(3) Investments-
-----------
The following summarizes the nature of the underlying assets which comprise
the investment portfolio of the Plan's Company Stock Fund, Stable Value Fund
and Individual Retirement Fund, S&P 500 Index Fund, Small Company Index Fund,
and International Equities Index Fund:
<TABLE>
<CAPTION>
Investment Fund Investment Underlying Assets
- -------------------- ----------------- -----------------------
<S> <C> <C>
Company Stock Fund Common Stock Champion International
Corporation Common Stock
Stable Value Fund and Individual Fixed Income Investment Pool of investment contracts
Retirement Fund Contracts issued by a diversified list
of insurance companies
</TABLE>
-9-
<PAGE>
<TABLE>
<S> <C> <C>
Synthetic Investment Portfolio of investment
Contract - Separate Account grade fixed income
securities, including but not
limited to, U.S. Treasuries,
U.S. Govern- ment Agency
notes and mortgages,
corporate securities, asset-
backed securities, Canadian
Yankees and cash
equivalents
S&P 500 Index Fund Commingled Fund Common stocks of large
companies in a wide variety
of industries (managed by
Metropolitan Life Insurance
Company)
Small Company Index Fund Commingled Fund Common stocks of small
U.S. companies in a wide
variety of industries
(managed by Barclays
Global Investors, N.A.)
International Equities Index Commingled Fund Common stocks of primarily
Fund established, medium to large
companies based in
economically developed
countries outside of the U.S.
(managed by Barclays
Global Investors, N.A.)
</TABLE>
-10-
<PAGE>
A summary of the Plan's investments (excluding cash and short term investments
and participant loans) follows:
<TABLE>
<CAPTION>
Carrying Value at
December 31,
---------------------------
1998 1997
------------ -------------
<S> <C> <C>
Common Stock, Champion International Corporation $106,232,634 $111,241,508
============ ============
Master Trust $ 2,123,127 $ 2,557,166
============ ============
Stock Funds:
Metropolitan Life Insurance Company, S&P 500 $238,505,454 $209,060,441
Commingled Fund
Barclays Global Investors, N.A.
Extended Equity Market Fund K 27,731,810 28,823,229
EAFE Equity Index Fund K 15,607,667 13,340,512
------------ ------------
$281,844,931 $251,224,182
============ ============
Stable Value and Individual Retirement Funds:
Fixed Income Investment Contracts -
Metropolitan Life Insurance Company
8.30%, maturing 50% on 7/1/99 and 50% on $ 18,763,092 $ 33,414,999
7/1/00
Providian Capital Management 19,973,857 16,006,659
6.83%, maturing 6/30/01
Principal Mutual Life Insurance Company 24,077,659 22,538,293
6.83%, maturing 12/31/01
John Hancock Mutual Life Insurance Company 25,952,042 33,149,257
8.30%, maturing 50% on 7/1/99 and 50% on
6/30/00
New York Life Insurance Company
6.66%, maturing 7/1/98 - 23,002,310
6.84%, maturing on 9/30/01 23,945,974 22,412,929
Transamerica Occidental Life Insurance 20,041,425 -
Company, interest rate equal to the CMT rate, ------------ ------------
reset quarterly, maturing 6/15/03
132,754,049 150,524,447
------------ ------------
Synthetic Investment Contract - Fair Value 214,574,799 198,568,824
Less: Excess of Separate Account over Contract Value (13,678,059) (9,392,002)
------------ ------------
Synthetic Investment Contract - Contract Value 200,896,740 189,176,822
------------ ------------
$333,650,789 $339,701,269
============ ============
</TABLE>
-11-
<PAGE>
The Plan's investments include approximately $132.8 million and $150.5 million
of fixed income investment contracts with various insurance companies, which
have been reported at contract value as of December 31, 1998 and 1997,
respectively. The insurance companies credit the Plan's account with
contributions and earnings on the underlying investments and charge the Plan for
withdrawals and administrative expenses. In some cases, limitations on the
liquidity guarantees can be imposed in the event of plan amendments, mergers,
sales, plan termination, layoff or other employer-initiated events. The fair
value of these investment contracts was estimated to be approximately $137.4
million and $154.2 million, at December 31, 1998 and 1997, respectively. The
fair value of the Plan's investment contracts was estimated by the Company using
a discounted cash flow analysis with an assumed, average discount rate of 5.14%
and 6.15% at December 31, 1998 and 1997 respectively. The average yield for
these contracts during 1998 was approximately 7.64% while the crediting interest
rate ranged from 4.94% to 8.30% at December 31, 1998 and from 6.66% to 8.30% at
December 31, 1997.
Effective January 3, 1994, the Company entered into a group annuity contract
with Metropolitan Life Insurance Company (MetLife) on behalf of the Plan.
Effective October 1, 1998, the Company terminated its group annuity contract
with MetLife and entered into similar "synthetic" investment contracts with CDC
Capital Inc. (CDC) and State Street Bank and Trust Company (SSB). Among other
things, both the previous contract with MetLife and the current contracts with
CDC and SSB required that a Separate Account, consisting of a portfolio of
diversified investment grade fixed income securities, be maintained on behalf of
the Plan and the Champion International Corporation Savings Plan for Hourly
Employees #158. The fair market value of the portfolio of investments, at any
point in time, represents the market value of the Separate Account. At December
31, 1998 and 1997, the Plan's interest in the Separate Account had a fair market
value of approximately $214.6 million and $198.6 million, respectively. The book
value of the Synthetic Investment contract(s), at any point in time, represents
the amount deposited into the Separate Account on behalf of the Plan, plus
interest credited, at rates established by the contract holder minus any
withdrawals and transfers out of the fund. Under the MetLife contract, interest
rates were reset every six months. Interest was credited at a rate of 7.15% and
7.18% during the periods January 1, 1998 through June 30, 1998 and July 1, 1998
through September 30, 1998, respectively. Under the CDC and SSB contracts,
interest rates are reset quarterly and interest was credited at a rate of 7.225%
for the period October 1, 1998 to December 31, 1998. The book value of the
contract(s) is guaranteed by the contract holder (subject to certain
restrictions on amounts withdrawn as a result of employer-initiated events) and
totaled approximately $200.9 million and $189.2 million at December 31, 1998 and
1997, respectively. The fair market value of the Plan's interest in the Separate
Account exceeded the book value of the contract(s) by approximately $13.7
million and $9.4 million at December 31, 1998 and 1997,
-12-
<PAGE>
respectively, and the difference is reflected in the preceding investment
summary as "Excess of Separate Account Over Contract Value".
(4) Priorities Upon Termination of the Plan-
---------------------------------------
Upon termination of the Plan, participants become fully vested in their
individual accounts.
(5) Forfeited Accounts-
------------------
At December 31, 1998 and 1997, forfeited nonvested accounts totaled
approximately $79,000 and $48,000, respectively. These accounts will be used to
reduce future Company contributions. During 1998, Company contributions were
reduced by approximately $190,000 as a result of forfeited nonvested accounts.
(6) Tax Exempt Status-
-----------------
The Plan, as amended and restated through July 1, 1994, has received a favorable
determination letter from the Internal Revenue Service, dated December 17, 1998.
A tax determination request has not been filed for the most recent amendments.
The plan administrator believes that the Plan was designed and is being operated
in compliance with the applicable requirements of the Internal Revenue Code
(IRC). Therefore, the plan administrator believes that the Plan is a qualified
plan under the IRC and the related trust is tax exempt as of December 31, 1998
and for the year ended.
(7) Transfers Between Champion International Corporation Plans-
-----------------------------------------------------------
The Company transfers participant account balances and the related assets
between the Plan and Plan #158 for participants who have changed employment
(i.e., hourly or salaried) status. In conjunction therewith, certain participant
account transfers totaling approximately $2 million were in process at December
31, 1997 and are reflected in the Accompanying Statement of Net Assets available
for Benefits as "Due From Champion International Corporation Savings Plan For
Hourly Employees #158".
-13-
<PAGE>
(8) Restructuring and Divestiture Program-
-------------------------------------
On October 7, 1997, the Company approved a program to maximize total shareholder
return by focusing on strategic businesses, increasing profitability and
improving financial discipline. As part of this program, the Company announced
its intention to divest several non-strategic product segments. These product
segments include the newsprint, recycling, coated and uncoated groundwood
specialty papers, premium papers, specialty uncoated papers, and liquid
packaging and bleached board businesses. Also to be divested are 325,000 acres
of timberlands. Additionally, the Company has announced plans to reduce its
worldwide workforce in the businesses remaining after the divestitures by 11%,
or approximately 2,000 positions, by the end of 1999.
On June 1, 1998, the Company announced that the divestiture of its newsprint
mills in Sheldon and Lufkin, Texas along with three recycling centers (i.e.
collectively the Newsprint System) had been completed. In accordance with an
asset purchase agreement between Champion International Corporation and Donohue
Inc., dated as of March 21, 1998 (the Purchase Agreement), Selected Employees,
as defined in the Purchase Agreement were fully vested in their account balances
as of the closing date. Assets totaling $22.6 million were transferred to the
successor plan for the Newsprint System during 1998.
On March 29, 1999, the Company announced an agreement to sell its mill in North
Carolina, an extruding and converting facility in Waynesville, North Carolina
and its DairyPak liquid packaging business. Additionally, on May 13, 1999, the
Company announced an agreement to sell its groundwood mill in Deferiet, New
York. In accordance with the applicable purchase agreements, the Company
anticipates that certain employees at these locations will also be fully vested
in their account balances.
Participants withdrawals may result from the aforementioned restructuring
program and divestiture agreements.
(9) Acquisition From Fort James Corporation-
---------------------------------------
In connection with an asset purchase agreement by and among Fort James Operating
Company (a division of Fort James Corporation, formerly James River Corporation
of Virginia), Diamond Occidental Forest, Inc., and Champion International
Corporation dated October 24, 1997, assets totaling approximately $1.4 million
were transferred from Fort James Corporation Stock Plus Investment Plan to the
Plan during 1998.
-14-
<PAGE>
Schedule I
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
Company Stock Fund
Company and Participant Directed
December 31, 1998
<TABLE>
<CAPTION>
Shares/ Current
Identity of Issuer/Asset Description Par Value Cost Value
- -------------------------------------------- ------------ ----------- ------------
<S> <C> <C> <C>
* State Street Bank and Trust Company, 2,398,615 $ 2,398,615 $ 2,398,615
Government Short Term Investment Fund =========== ============
* Champion International Corporation, 2,623,028 $80,836,006 $106,232,634
Common Stock =========== ============
* Represents a transaction with a Party-in-Interest
</TABLE>
-15-
<PAGE>
Schedule I
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
Stable Value Fund
December 31, 1998
<TABLE>
<CAPTION>
Shares/
Identity of Issuer/Asset Description Par Value Cost Current Value
- ------------------------------------------------------- -------------- -------- -----------------
<S> <C> <C> <C>
Fixed Income Investment Contracts:
Metropolitan Life Insurance Company --
GAC 13943, 8.30%, maturing 50% on 7/1/99 and - $ 18,763,092 $ 18,763,092
50% on 7/1/00
John Hancock Mutual Life Insurance Company-- - 25,952,042 25,952,042
GAC 7652, 8.30%, maturing 50% on 7/1/99 and 50%
on 6/30/00
Providian Capital Management --
Contract BDA 00732FR, 6.83% maturing 6/30/01 - 19,973,857 19,973,857
Principal Mutual Life Insurance Company--
GAC 4-28880-1, 6.83%, maturing 12/31/01 - 24,077,659 24,077,659
New York Life Insurance Company --
GAC 06344-003, 6.84%, maturing 9/30/01 - 23,945,974 23,945,974
Transamerica Occidental Life Insurance Company 20,041,425 20,041,425
Interest rate equal to the 10 year CMT rate, reset -------------- -------------
quarterly, 4.94% at 12/31/98, maturing 6/15/03
$132,754,049 $132,754,049
============== =============
Synthetic Investment Contracts
Fair Value of Separate Account (A) 214,574,799
Less: Excess of Separate Account over Contract Value (13,678,059)
-------------
Contract Value 200,896,740
=============
Cash and Short Term Investments:
* State Street Bank and Trust Company - Government
Short Term Investment Fund 6,506,626 6,506,626 6,506,626
============== =============
$340,157,415
=============
</TABLE>
(A) Cost of investments information, on a plan by plan basis, is not furnished
by the asset managers.
* Represents a transaction with a Party-in-Interest
-16-
<PAGE>
Schedule I
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
S&P 500 Index Fund
December 31, 1998
Shares/ Current
Identity of Issuer/Asset Description Par Value Cost Value
- -------------------------------------- --------- ------ ---------
Metropolitan Life Insurance Company,
S&P 500 Commingled Fund 845,485 (A) $238,505,454
====== =============
(A) Cost of investments information is not furnished on a plan by plan basis by
Metropolitan Life Insurance Company
-17-
<PAGE>
Schedule I
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
Small Company Index Fund
December 31, 1998
<TABLE>
<CAPTION>
Shares/ Current
Identity of Issuer/Asset Description Par Value Cost Value
- -------------------------------------- ----------- ----------- ------------
<S> <C> <C> <C>
Barclays Global Investors, N.A.,
Extended Equity Market Fund K 1,357,342 $21,286,166 $27,731,810
=========== ============
Barclays Global Investors, N.A., 44 $ 44 $ 44
Money Market Fund, Employee Benefit Trust =========== ============
</TABLE>
-18-
<PAGE>
Schedule I
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
International Equities Index Fund
December 31, 1998
<TABLE>
<CAPTION>
Shares/ Current
Identity of Issuer/Asset Description Par Value Cost Value
- ----------------------------------------- ----------- ------- ----------
<S> <C> <C> <C>
Barclays Global Investors, N.A.,
EAFE Equity Index Fund K 1,023,755 $13,104,848 $15,607,667
============ ===========
Barclays Global Investors, N.A., 43 $ 43 $ 43
Money Market Fund, Employee Benefit ============ ===========
Trust
</TABLE>
-19-
<PAGE>
Schedule I
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Item 27 (a) - Schedule Of Assets Held For Investment Purposes
Employee Loan Fund
December 31, 1998
Shares/ Current
Identity of Issuer/Asset Description Par Value Cost Value
- ---------------------------------------- ----------- --------- -----------
* Participant Loans, Interest at Prime + - $17,051,926 $17,051,926
l% at Origination (interest rates on =========== ===========
loans ranged from 7.25% to 11.5% at
December 31, 1998), secured by
applicable participants' vested accrued
benefits
* Represents a transaction with a Party -in-Interest
-20-
<PAGE>
Schedule II
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Item 27 (d) - Schedule of Reportable Transactions
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Number Expense Incurred
Of Purchase Selling With Cost of Net Gain
Description of Assets Transactions Price (A) Price (A) Transactions Asset or (Loss)
- ----------------------------------- ---------------- ------------ ------------ -------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Caisse des Depots
Investment Contract 1021-01 3 100,432,263 - - 100,432,263 -
Investment Contract 1021-01 1 - 4,960,832 - 4,960,832 -
Investment Contract 1021-02 1 4,400,000 - - 4,400,000 -
Investment Contract 1021-02 1 - 8,981 - 8,981 -
Transamerica Occidental Life
Investment Contract 51529 4 36,200,000 - - 36,200,000 -
Investment Contract 51529 6 - 16,200,000 - 16,200,000 -
Metropolitan Life Insurance Company
Investment Contract 13943 12 2,750,733 - - 2,750,733 -
Investment Contract 13943 2 - 17,353,809 - 17,353,809 -
Investment Contract 13625 12 11,102,873 - - 11,102,873 -
Investment Contract 13625 2 - 199,183,055 - 199,183,055 -
MetLife S&P 500 Commingled Fund 370 33,883,453 - - 33,883,453 -
MetLife S&P 500 Commingled Fund 428 - 59,790,327 - 34,132,720 25,657,607
State Street Bank
Investment Contract 98192 3 100,450,512 - - 100,450,512 -
Investment Contract 98192 1 - 4,960,832 - 4,960,832 -
Investment Contract 98276 1 4,400,000 - - 4,400,000 -
Investment Contract 98276 1 - 8,981 - 8,981 -
Government Short Term Investment Fund 295 118,100,290 - - 118,100,290 -
Government Short Term Investment Fund 283 - 113,219,032 - 113,219,032 -
</TABLE>
-21-
<PAGE>
(A) The current value of all assets acquired or disposed of, at the time of
acquisition or disposition, is equal to the purchase price or selling
price, respectively.
-22-
<PAGE>
Schedule III
Champion International Corporation
Savings Plan #077
FEIN: 13-1427390
Certification of Receipt of Annual Statement of Assets
And Liabilities of Commingled Trust Funds
Supplement to Item 27(a) - Schedule of Assets
Held for Investment Purposes
In accordance with 29 CFR 2520.103-9, the Pension and Employee Benefits
Committee (PEBC) of Champion International Corporation hereby certifies that
subject savings plan (the Plan) is in receipt of the most recent annual
statement of assets and liabilities of the collective trust funds in which the
Plan has an investment.
In addition, a notice has been received by the PEBC from State Street Bank and
Trust Company informing the Plan that the proper procedure was followed in
filing a copy of the most recent annual statement of assets and liabilities of
State Street Bank and Trust Company Government Short Term Investment Fund, in
which the Plan has an investment, with the Department of Labor. The Employer
Identification Number of State Street Bank and Trust Company Government Short
Term Investment Fund is 04-0025081 and the filing was made for the year ended
December 31, 1998.
At December 31, 1998, the Plan had an investment in MetLife Separate Account
197, a pooled Separate Account of the Metropolitan Life Insurance Company
(MetLife). The asset listing for Separate Account 197 (S&P 500 Index Fund) as of
December 31, 1998 is included herein, as no separate filing of the most recent
statement of assets and liabilities of the Separate Account had been made by
Metropolitan to the Department of Labor.
At December 31, 1998 the Plan had an investment in two synthetic investment
contracts, the underlying assets of which were managed by Dwight Asset
Management and State Street Research and Management Company. The asset listings
for these pooled investment Accounts, as of December 31, 1998, are included
herein, as no separate filing of the most recent statements of assets and
liabilities had been made by the asset managers.
At December 31, 1998, the Plan had investments in the Extended Equity Market
Fund K, the EAFE Equity Index Fund K, and the Money Market Fund, common,
collective funds of Barclays Global Investors, N.A. (Barclays). A notice has
been received by the Plan that the proper procedures have been followed in
filing a copy of the most recent statement of assets and liabilities of Barclays
common collective funds in which the Plan had investments with the Department of
Labor. The employer identification numbers of the common collective funds are
94-3199860 (Extended Equity Market Fund K), 94-3199859 (EAFE Equity Index Fund
K), and 94-6450621 (Money Market Fund), and
-23-
<PAGE>
the filings were made on or before the date upon which the annual report is
required to be held with the Department of Labor.
The Plan's investments in all such funds are included in the accompanying
Schedule of Assets Held for Investment Purposes.
-24-
<PAGE>
Schedule III
Champion International
Corporation
Savings Plan #077
FEIN: 13-1427390
MetLife Separate Account
197 Asset Listing
December 31, 1998
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
CASH -- 1,917,795.52 1.00 1,917,795.52 --
RECEIVABLE FOR INVESTMENTS SOLD -- 1,515,905.65 1.00 1,515,905.65 --
PAYABLE FOR INVESTMENTS PURCHASED -- (1,830,723.04) 1.00 (1,830,723.04) --
UNITED STATES METLIFE SHORT TERM INVESTMENT 0.10 0.10 1.00 0.10 --
BERMUDA TYCO INTL LTD NEW COM 18,201.00 772,928.65 75.44 1,373,037.94 600,109.29
CANADA SEAGRAM LTD COM 10,917.00 407,914.44 38.00 414,846.00 6,931.56
CANADA LAIDLAW INC COM 9,300.00 99,554.70 10.06 93,581.25 (5,973.45)
CANADA NORTHERN TELECOM LTD 18,712.00 777,441.28 50.13 937,939.00 160,497.72
CANADA ALCAN ALUM LTD 6,185.00 202,065.23 27.06 167,381.56 (34,683.67)
CANADA BARRICK GOLD CORP 10,243.00 244,041.43 19.50 199,738.50 (44,302.93)
CANADA INCO LTD COM 4,262.00 130,557.55 10.56 45,017.38 (85,540.17)
CANADA PLACER DOME INC 7,011.00 129,735.85 11.50 80,626.50 (49,109.35)
CANADA MOORE LTD 2,300.00 48,564.90 11.00 25,300.00 (23,264.90)
NETHERLANDS UNILEVER NV N Y SHS ADR 18,112.00 808,237.00 82.94 1,502,164.00 693,927.00
NETHERLANDS ROYAL DUTCH PETE CO N Y 61,120.00 2,322,812.70 47.88 2,926,120.00 603,307.30
NETHERLANDS ANTILLES SCHLUMBERGER LTD COM 15,644.00 677,984.10 46.13 721,579.50 43,595.40
UNITED STATES AETNA INC COM 4,241.00 317,849.80 78.63 333,448.63 15,598.83
UNITED STATES ALLSTATE CORP COM 23,316.00 604,761.13 38.63 900,580.50 295,819.37
UNITED STATES AMERICAN EXPRESS CO COM 12,805.00 823,772.54 102.25 1,309,311.25 485,538.71
UNITED STATES AMERICAN GEN CORP COM 7,499.00 371,470.42 78.00 584,922.00 213,451.58
UNITED STATES AMERICAN INTL GROUP INC COM 30,164.00 1,566,445.76 96.63 2,914,596.50 1,348,150.74
UNITED STATES AON CORP COM 4,750.00 279,266.70 55.38 263,031.25 (16,235.45)
UNITED STATES ASSOCIATES FIRST CAP CORP CL A 20,516.00 486,259.20 42.38 869,365.50 383,106.30
UNITED STATES BANK NEW YORK INC COM 21,500.00 429,301.48 40.25 865,375.00 436,073.52
UNITED STATES BANK ONE CORP COM 33,364.00 1,208,816.82 51.06 1,703,649.25 494,832.43
UNITED STATES BANKAMERICA CORP NEW COM 49,287.00 1,829,503.29 60.13 2,963,380.88 1,133,877.59
UNITED STATES BANKBOSTON CORP COM 8,186.00 261,978.31 38.94 318,742.38 56,764.07
UNITED STATES BANKERS TRUST CORP COM 2,653.00 224,021.83 85.44 226,665.69 2,643.86
UNITED STATES BB&T CORP COM 8,300.00 265,088.50 40.31 334,593.75 69,505.25
UNITED STATES BEAR STEARNS COS INC COM 3,100.00 165,788.30 37.38 115,862.50 (49,925.80)
</TABLE>
-25-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES CAPITAL ONE FINL CORP 2,100.00 263,329.50 115.00 241,500.00 (21,829.50)
UNITED STATES CHASE MANHATTAN CORP NEW COM 24,344.00 977,421.75 68.06 1,656,913.50 679,491.75
UNITED STATES CHUBB CORP COM 4,940.00 269,651.00 64.88 320,482.50 50,831.50
UNITED STATES CIGNA CORP COM 6,229.00 426,921.39 77.31 481,579.56 54,658.17
UNITED STATES CINCINNATI FINL CORP COM 4,900.00 219,511.83 36.63 179,462.50 (40,049.33)
UNITED STATES CITIGROUP INC COM 64,674.00 2,303,066.42 49.50 3,201,363.00 898,296.58
UNITED STATES COMERICA INC COM 4,600.00 140,615.60 68.19 313,662.50 173,046.90
UNITED STATES CONSECO INC COM 8,840.00 337,613.77 30.56 270,172.50 (67,441.27)
UNITED STATES COUNTRYWIDE CR INDS INC COM 3,400.00 112,143.10 50.19 170,637.50 58,494.40
UNITED STATES EQUIFAX INC COM 4,200.00 136,904.27 34.19 143,587.50 6,683.23
UNITED STATES FEDERAL NATL MTG ASSN COM 29,792.00 980,426.55 74.00 2,204,608.00 1,224,181.45
UNITED STATES FIFTH THIRD BANCORP 7,525.00 356,870.47 71.31 536,626.56 179,756.09
UNITED STATES FIRST UN CORP COM 28,091.00 1,046,236.49 60.81 1,708,283.94 662,047.45
UNITED STATES FLEET FINL GROUP INC NEW COM 16,294.00 583,076.49 44.69 728,138.13 145,061.64
UNITED STATES FRANKLIN RES INC COM 7,200.00 377,594.00 32.00 230,400.00 (147,194.00)
UNITED STATES FREDDIE MAC CORP COM 19,528.00 477,976.90 64.44 1,258,335.50 780,358.60
UNITED STATES GENERAL RE CORP COM 2,513.00 440,493.63 200.25 503,228.25 62,734.62
UNITED STATES GOLDEN WEST FINL CORP DEL COM 1,800.00 120,229.80 91.69 165,037.50 44,807.70
UNITED STATES HARTFORD FINL SVCS GROUP INC 6,624.00 166,152.30 54.88 363,492.00 197,339.70
UNITED STATES HOUSEHOLD INTL INC COM 13,542.00 285,064.38 39.63 536,601.75 251,537.37
UNITED STATES HUNTINGTON BANCSHARES INC 6,100.00 190,452.79 30.06 183,381.25 (7,071.54)
UNITED STATES JEFFERSON PILOT CORP COM 2,950.00 110,118.25 75.00 221,250.00 111,131.75
UNITED STATES KEYCORP NEW COM 12,656.00 336,309.60 32.00 404,992.00 68,682.40
UNITED STATES LEHMAN BROS HLDGS INC COM 3,300.00 186,089.60 44.06 145,406.25 (40,683.35)
UNITED STATES LINCOLN NATL CORP IND COM 3,200.00 164,045.30 81.81 261,800.00 97,754.70
UNITED STATES MARSH & MCLENNAN COS INC COM 7,221.00 376,687.77 58.44 421,977.19 45,289.42
UNITED STATES MBIA INC COM 2,800.00 156,719.50 65.56 183,575.00 26,855.50
UNITED STATES MBNA CORP COM 21,044.00 217,724.55 24.94 524,784.75 307,060.20
UNITED STATES MELLON BK CORP COM 7,452.00 252,727.00 68.75 512,325.00 259,598.00
UNITED STATES MERCANTILE BANCORPORATION INC 4,300.00 227,904.30 46.13 198,337.50 (29,566.80)
UNITED STATES MERRILL LYNCH & CO INC 9,964.00 324,422.25 66.75 665,097.00 340,674.75
UNITED STATES MGIC INVT CORP WIS COM 3,100.00 112,434.27 39.81 123,418.75 10,984.48
UNITED STATES MORGAN J P & CO INC COM 5,149.00 587,538.10 105.06 540,966.81 (46,571.29)
UNITED STATES MORGAN STANLEY DEAN WTTER & CO 16,380.00 587,314.13 71.00 1,162,980.00 575,665.87
UNITED STATES NATIONAL CITY CORP COM 9,460.00 493,943.60 72.50 685,850.00 191,906.40
UNITED STATES NORTHERN TR CORP COM 3,100.00 208,924.50 87.31 270,668.75 61,744.25
UNITED STATES PAYCHEX INC COM 4,700.00 222,275.50 51.44 241,756.25 19,480.75
UNITED STATES PNC BK CORP COM 8,707.00 349,403.91 54.13 471,266.38 121,862.47
UNITED STATES PROGRESSIVE CORP OHIO COM 2,300.00 252,471.00 169.38 389,562.50 137,091.50
UNITED STATES PROVIDIAN FINL CORP COM 3,922.00 9,181.17 75.00 294,150.00 284,968.83
UNITED STATES REGIONS FINL CORP COM 6,100.00 213,209.50 40.31 245,906.25 32,696.75
</TABLE>
-26-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES REPUBLIC N Y CORP COM 3,100.00 141,579.80 45.56 141,243.75 (336.05)
UNITED STATES SAFECO CORP COM 3,640.00 142,670.80 42.94 156,292.50 13,621.70
UNITED STATES SCHWAB CHARLES CORP NEW COM 11,275.00 225,190.59 56.19 633,514.06 408,323.47
UNITED STATES SLM HLDG CORP COM 4,900.00 242,344.20 48.00 235,200.00 (7,144.20)
UNITED STATES ST PAUL COS INC 6,874.00 235,051.16 34.75 238,871.50 3,820.34
UNITED STATES STATE STREET CORP 4,600.00 244,054.50 69.56 319,987.50 75,933.00
UNITED STATES SUMMIT BANCORP COM 5,100.00 240,883.00 43.69 222,806.25 (18,076.75)
UNITED STATES SUNAMERICA INC COM 6,200.00 265,366.60 81.13 502,975.00 237,608.40
UNITED STATES SUNTRUST BKS INC 6,286.00 258,461.68 76.50 480,879.00 222,417.32
UNITED STATES SYNOVUS FINL CORP 7,400.00 164,195.50 24.38 180,375.00 16,179.50
UNITED STATES TORCHMARK CORP 3,900.00 99,895.63 35.31 137,718.75 37,823.12
UNITED STATES TRANSAMERICA CORP COM 1,995.00 124,868.98 115.50 230,422.50 105,553.52
UNITED STATES U S BANCORP DEL COM 20,354.00 533,331.44 35.50 722,567.00 189,235.56
UNITED STATES UNION PLANTERS CORP TENN COM 3,900.00 192,578.00 45.31 176,718.75 (15,859.25)
UNITED STATES UNUM CORP COM 3,860.00 121,419.30 58.38 225,327.50 103,908.20
UNITED STATES WACHOVIA CORP NEW COM 6,113.00 335,678.53 87.44 534,505.44 198,826.91
UNITED STATES WASHINGTON MUTUAL INC COM 17,033.00 614,176.91 38.19 650,447.69 36,270.78
UNITED STATES WELLS FARGO & CO NEW COM 45,846.00 942,392.24 39.94 1,830,974.63 888,582.39
UNITED STATES ABBOTT LABS COM 43,110.00 1,037,205.63 49.00 2,112,390.00 1,075,184.37
UNITED STATES ALLERGAN INC COM 2,000.00 69,365.10 64.75 129,500.00 60,134.90
UNITED STATES ALZA CORP COM 2,600.00 64,202.00 52.25 135,850.00 71,648.00
UNITED STATES AMERICAN HOME PRODS CORP COM 37,776.00 1,039,244.83 56.31 2,127,261.00 1,088,016.17
UNITED STATES AMGEN INC 7,276.00 288,861.85 104.56 760,796.75 471,934.90
UNITED STATES BARD C R INC 1,300.00 44,901.00 49.50 64,350.00 19,449.00
UNITED STATES BAUSCH & LOMB INC COM 1,700.00 65,602.80 60.00 102,000.00 36,397.20
UNITED STATES BAXTER INTL INC COM 8,230.00 410,983.62 64.31 529,291.88 118,308.26
UNITED STATES BECTON DICKINSON & CO COM 6,800.00 153,755.60 42.69 290,275.00 136,519.40
UNITED STATES BIOMET INC COM 3,000.00 64,781.20 40.25 120,750.00 55,968.80
UNITED STATES BOSTON SCIENTIFIC CORP COM 11,200.00 354,794.10 26.81 300,300.00 (54,494.10)
UNITED STATES BRISTOL MYERS SQUIBB CO COM 28,612.00 1,669,763.60 133.81 3,828,643.25 2,158,879.65
UNITED STATES CARDINAL HEALTH INC COM 5,800.00 370,611.57 75.88 440,075.00 69,463.43
UNITED STATES COLUMBIA/HCA HEALTHCARE CORP 18,023.00 569,851.25 24.75 446,069.25 (123,782.00)
UNITED STATES GUIDANT CORP COM 4,200.00 230,704.75 110.25 463,050.00 232,345.25
UNITED STATES HCR MANOR CARE INC COM 3,239.00 89,612.03 29.38 95,145.63 5,533.60
UNITED STATES HEALTHSOUTH CORP COM 11,900.00 301,855.25 15.44 183,706.25 (118,149.00)
UNITED STATES HUMANA INC COM 4,600.00 116,823.40 17.81 81,937.50 (34,885.90)
UNITED STATES JOHNSON & JOHNSON COM 38,210.00 1,909,756.58 83.88 3,204,863.75 1,295,107.17
UNITED STATES LILLY ELI & CO COM 31,624.00 1,116,583.43 88.88 2,810,583.00 1,693,999.57
UNITED STATES MALLINCKRODT INC NEW 1,785.00 65,569.20 30.81 55,000.31 (10,568.89)
UNITED STATES MEDTRONIC INC COM 14,092.00 546,482.57 74.25 1,046,331.00 499,848.43
UNITED STATES MERCK & CO INC COM 34,305.00 2,151,205.45 147.69 5,066,419.69 2,915,214.24
</TABLE>
-27-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES MILLIPORE CORP COM 900.00 23,630.50 28.44 25,593.75 1,963.25
UNITED STATES PFIZER INC COM 36,984.00 1,587,423.75 125.44 4,639,180.50 3,051,756.75
UNITED STATES PHARMACIA & UPJOHN INC COM 14,615.00 557,404.32 56.63 827,574.38 270,170.06
UNITED STATES PROVIDENT COS INC COM 3,700.00 133,274.00 41.50 153,550.00 20,276.00
UNITED STATES SCHERING PLOUGH CORP COM 41,860.00 841,773.10 55.25 2,312,765.00 1,470,991.90
UNITED STATES ST JUDE MED INC COM 2,400.00 85,179.70 27.69 66,450.00 (18,729.70)
UNITED STATES TENET HEALTHCARE CORP COM 8,533.00 263,273.33 26.25 223,991.25 (39,282.08)
UNITED STATES UNITED HEALTHCARE CORP COM 3,687.00 178,819.50 43.06 158,771.44 (20,048.06)
UNITED STATES WARNER LAMBERT CO COM 23,290.00 839,067.30 75.19 1,751,116.88 912,049.58
UNITED STATES ALBERTO CULVER CO CL B COM 1,200.00 30,836.50 26.69 32,025.00 1,188.50
UNITED STATES ANHEUSER BUSCH COS INC COM 13,866.00 524,014.17 65.63 909,956.25 385,942.08
UNITED STATES AVON PRODS INC COM 7,424.00 168,399.55 44.25 328,512.00 160,112.45
UNITED STATES BALL CORP COM 900.00 24,055.50 45.75 41,175.00 17,119.50
UNITED STATES BESTFOODS COM 8,168.00 250,319.27 53.25 434,946.00 184,626.73
UNITED STATES BROWN FORMAN CORP CL B 2,200.00 104,053.50 75.69 166,512.50 62,459.00
UNITED STATES CAMPBELL SOUP CO COM 12,886.00 425,132.03 55.00 708,730.00 283,597.97
UNITED STATES CLOROX CO COM 3,324.00 109,463.75 116.81 388,284.75 278,821.00
UNITED STATES COCA COLA CO COM 70,210.00 3,221,132.60 66.88 4,695,293.75 1,474,161.15
UNITED STATES COCA COLA ENTERPRISES INC COM 11,100.00 329,027.90 35.75 396,825.00 67,797.10
UNITED STATES COLGATE PALMOLIVE CO 8,364.00 611,093.29 92.88 776,806.50 165,713.21
UNITED STATES CONAGRA INC COM 13,960.00 374,266.35 31.50 439,740.00 65,473.65
UNITED STATES COORS ADOLPH CO CL B 1,200.00 29,702.00 56.44 67,725.00 38,023.00
UNITED STATES CROWN CORK & SEAL INC COM 3,555.00 166,293.73 30.81 109,538.44 (56,755.29)
UNITED STATES FORT JAMES CORP COM 6,136.00 228,464.00 40.00 245,440.00 16,976.00
UNITED STATES FRUIT OF THE LOOM INC CL A 1,800.00 49,536.10 13.81 24,862.50 (24,673.60)
UNITED STATES GENERAL MLS INC COM 4,568.00 243,089.51 77.75 355,162.00 112,072.49
UNITED STATES GILLETTE CO COM 31,840.00 1,151,844.80 48.31 1,538,270.00 386,425.20
UNITED STATES HASBRO INC COM 3,522.00 128,601.08 36.13 127,232.25 (1,368.83)
UNITED STATES HEINZ H J CO COM 10,389.00 359,062.88 56.63 588,277.13 229,214.25
UNITED STATES HERSHEY FOODS CORP 3,974.00 273,809.74 62.19 247,133.13 (26,676.61)
UNITED STATES INTL FLAVORS & FRAGRANCES INC 3,000.00 137,591.30 44.19 132,562.50 (5,028.80)
UNITED STATES KELLOGG CO COM 11,574.00 369,661.30 34.13 394,962.75 25,301.45
UNITED STATES KIMBERLY CLARK CORP COM 15,258.00 696,643.56 54.50 831,561.00 134,917.44
UNITED STATES LIZ CLAIBORNE INC COM 1,700.00 68,104.40 31.56 53,656.25 (14,448.15)
UNITED STATES LOEWS CORP COM 3,200.00 307,670.30 98.25 314,400.00 6,729.70
UNITED STATES MATTEL INC COM 8,166.00 242,661.40 22.81 186,286.88 (56,374.52)
UNITED STATES MORTON INTL INC IND NEW COM 3,414.00 98,819.97 24.50 83,643.00 (15,176.97)
UNITED STATES NIKE INC CL B COM 8,148.00 326,332.20 40.56 330,503.25 4,171.05
UNITED STATES PEPSICO INC COM 41,986.00 1,075,143.42 40.94 1,718,801.88 643,658.46
UNITED STATES PHILIP MORRIS COS INC COM 69,347.00 2,107,333.63 53.50 3,710,064.50 1,602,730.87
UNITED STATES POLAROID CORP COM 900.00 34,055.80 18.69 16,818.75 (17,237.05)
</TABLE>
-28-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES PROCTER & GAMBLE CO COM 38,026.00 1,947,167.20 91.31 3,472,249.13 1,525,081.93
UNITED STATES QUAKER OATS CO COM 3,849.00 141,492.50 59.50 229,015.50 87,523.00
UNITED STATES RALSTON PURINA CO-RALSTON 8,583.00 302,103.34 32.38 277,874.63 (24,228.71)
UNITED STATES REEBOK INTL LTD COM 1,300.00 40,313.70 14.88 19,337.50 (20,976.20)
UNITED STATES RJR NABISCO HLDGS CORP COM NEW 9,300.00 240,417.00 29.69 276,093.75 35,676.75
UNITED STATES RUBBERMAID INC COM 4,200.00 100,340.40 31.44 132,037.50 31,697.10
UNITED STATES RUSSELL CORP 587.00 13,918.74 20.31 11,923.44 (1,995.30)
UNITED STATES SARA LEE CORP 25,968.00 510,974.80 28.19 731,973.00 220,998.20
UNITED STATES SHERWIN WILLIAMS CO COM 4,944.00 109,268.80 29.38 145,230.00 35,961.20
UNITED STATES TRICON GLOBAL RESTAURANTS INC 4,368.00 119,959.22 50.13 218,946.00 98,986.78
UNITED STATES TUPPERWARE CORP COM 1,400.00 33,565.80 16.44 23,012.50 (10,553.30)
UNITED STATES UST INC COM 5,310.00 158,478.10 34.88 185,186.25 26,708.15
UNITED STATES V F CORP COM 3,500.00 122,253.75 46.88 164,062.50 41,808.75
UNITED STATES WRIGLEY WM JR CO COM 3,211.00 203,236.73 89.56 287,585.19 84,348.46
UNITED STATES ALBERTSONS INC COM 7,265.00 252,038.05 63.69 462,689.69 210,651.64
UNITED STATES AMERICA ONLINE INC DEL COM 12,500.00 1,830,723.04 160.00 2,000,000.00 169,276.96
UNITED STATES AMERICAN GREETINGS CORP CL A 1,900.00 61,437.60 41.06 78,018.75 16,581.15
UNITED STATES AMERICAN STORES CO NEW COM 7,872.00 199,319.92 36.94 290,772.00 91,452.08
UNITED STATES AMERITECH CORP NEW COM 31,358.00 973,207.38 63.38 1,987,313.25 1,014,105.87
UNITED STATES AT&T CORP COM 51,447.00 2,221,886.00 75.25 3,871,386.75 1,649,500.75
UNITED STATES AUTOZONE INC COM 4,200.00 99,546.40 32.94 138,337.50 38,791.10
UNITED STATES BLOCK H & R INC COM 2,800.00 85,062.30 45.00 126,000.00 40,937.70
UNITED STATES BRUNSWICK CORP COM 2,600.00 65,389.60 24.75 64,350.00 (1,039.60)
UNITED STATES CARNIVAL CORP COM 17,000.00 747,762.00 48.00 816,000.00 68,238.00
UNITED STATES CBS CORP COM 20,018.00 462,055.06 32.75 655,589.50 193,534.44
UNITED STATES CENDANT CORP COM 24,065.00 625,457.97 19.06 458,739.06 (166,718.91)
UNITED STATES CIRCUIT CITY GROUP COM 3,100.00 117,462.10 49.94 154,806.25 37,344.15
UNITED STATES CLEAR CHANNEL COMMUNICATIONS 7,600.00 306,640.80 54.50 414,200.00 107,559.20
UNITED STATES COMCAST CORP CL A SPL 10,600.00 258,482.70 58.69 622,087.50 363,604.80
UNITED STATES CONSOLIDATED STORES CORP COM 2,900.00 119,340.20 20.19 58,543.75 (60,796.45)
UNITED STATES COSTCO COS INC COM 6,231.00 261,339.55 72.19 449,800.31 188,460.76
UNITED STATES CVS CORP 11,200.00 345,771.05 55.00 616,000.00 270,228.95
UNITED STATES DARDEN RESTAURANTS INC 3,800.00 48,895.30 18.00 68,400.00 19,504.70
UNITED STATES DAYTON HUDSON CORP COM 12,622.00 361,495.83 54.25 684,743.50 323,247.67
UNITED STATES DELUXE CORP COM 2,097.00 61,573.05 36.56 76,671.56 15,098.51
UNITED STATES DILLARDS INC CL A COM 2,998.00 98,152.31 28.38 85,068.25 (13,084.06)
UNITED STATES DISNEY WALT CO COM 58,315.00 1,281,658.33 30.00 1,749,450.00 467,791.67
UNITED STATES DOLLAR GEN CORP COM 5,250.00 184,940.25 23.63 124,031.25 (60,909.00)
UNITED STATES DONNELLEY R R & SONS CO COM 3,611.00 116,343.85 43.81 158,206.94 41,863.09
UNITED STATES DOW JONES & CO INC COM 2,491.00 105,913.85 48.13 119,879.38 13,965.53
UNITED STATES EASTMAN KODAK CO COM 9,249.00 588,394.40 72.00 665,928.00 77,533.60
</TABLE>
-29-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES ECOLAB INC COM 3,534.00 78,097.85 36.19 127,886.63 49,788.78
UNITED STATES FEDERATED DEPT STORES INC DEL 5,600.00 187,681.10 43.56 243,950.00 56,268.90
UNITED STATES FORTUNE BRANDS INC COM 4,887.00 134,182.05 31.63 154,551.38 20,369.33
UNITED STATES GANNETT INC COM 7,976.00 499,588.46 66.19 527,911.50 28,323.04
UNITED STATES GAP INC COM 16,402.00 219,094.74 56.25 922,612.50 703,517.76
UNITED STATES GREAT ATLANTIC & PAC TEA INC 700.00 19,445.40 29.63 20,737.50 1,292.10
UNITED STATES HARCOURT GEN INC 2,246.00 90,205.45 53.19 119,459.13 29,253.68
UNITED STATES HARRAHS ENTMT INC COM 2,646.00 68,708.72 15.69 41,509.13 (27,199.59)
UNITED STATES HILTON HOTELS CORP COM 7,407.00 135,166.95 19.13 141,658.88 6,491.93
UNITED STATES HOME DEPOT INC COM 44,358.00 980,705.32 61.19 2,714,155.13 1,733,449.81
UNITED STATES IKON OFFICE SOLUTIONS INC COM 3,684.00 124,932.47 8.56 31,544.25 (93,388.22)
UNITED STATES IMS HEALTH INC COM 4,834.00 133,702.47 75.44 364,664.88 230,962.41
UNITED STATES INTERPUBLIC GROUP COS INC COM 3,959.00 132,027.74 79.75 315,730.25 183,702.51
UNITED STATES JOSTENS INC 700.00 16,476.60 26.19 18,331.25 1,854.65
UNITED STATES K MART CORP COM 13,950.00 174,042.35 15.31 213,609.38 39,567.03
UNITED STATES KING WORLD PRODTNS INC COM 1,900.00 50,265.80 29.44 55,931.25 5,665.45
UNITED STATES KNIGHT RIDDER INC 2,296.00 109,128.00 51.13 117,383.00 8,255.00
UNITED STATES KOHLS CORP COM 4,400.00 249,238.00 61.44 270,325.00 21,087.00
UNITED STATES KROGER CO COM 7,386.00 236,362.33 60.50 446,853.00 210,490.67
UNITED STATES LIMITED INC COM 6,272.00 112,293.78 29.13 182,672.00 70,378.22
UNITED STATES LONGS DRUG STORES CORP COM 1,228.00 32,728.80 37.50 46,050.00 13,321.20
UNITED STATES LOWES COS INC COM 9,966.00 287,576.31 51.19 510,134.63 222,558.32
UNITED STATES MARRIOTT INTL INC NEW CL A 7,172.00 123,584.57 29.00 207,988.00 84,403.43
UNITED STATES MAY DEPT STORES CO COM 6,863.00 264,131.40 60.38 414,353.63 150,222.23
UNITED STATES MCDONALDS CORP COM 19,215.00 787,927.03 76.63 1,472,349.38 684,422.35
UNITED STATES MCGRAW HILL COS INC COM 3,100.00 138,055.70 101.88 315,812.50 177,756.80
UNITED STATES MEDIAONE GROUP INC COM 17,040.00 354,616.55 47.00 800,880.00 446,263.45
UNITED STATES MEREDITH CORP COM 1,200.00 44,449.60 37.88 45,450.00 1,000.40
UNITED STATES MEYER FRED INC DEL NEW COM 4,400.00 205,652.20 60.25 265,100.00 59,447.80
UNITED STATES MIRAGE RESORTS INC COM 5,100.00 132,804.50 14.94 76,181.25 (56,623.25)
UNITED STATES NATIONAL SVC INDS INC COM 900.00 33,243.00 38.00 34,200.00 957.00
UNITED STATES NEW YORK TIMES CO CL A 5,000.00 111,125.20 34.69 173,437.50 62,312.30
UNITED STATES NORDSTROM INC WASH COM 4,302.00 89,278.00 34.69 149,225.63 59,947.63
UNITED STATES OMNICOM GROUP INC COM 4,900.00 223,715.10 58.00 284,200.00 60,484.90
UNITED STATES PENNEY J C INC COM 7,272.00 468,645.04 46.88 340,875.00 (127,770.04)
UNITED STATES PEP BOYS MANNY MOE & JACK COM 1,500.00 43,092.50 15.69 23,531.25 (19,561.25)
UNITED STATES RITE AID CORP COM 7,300.00 124,096.90 49.56 361,806.25 237,709.35
UNITED STATES SAFEWAY INC NEW COM 14,000.00 684,287.79 60.94 853,125.00 168,837.21
UNITED STATES SEARS ROEBUCK & CO COM 10,762.00 455,932.29 42.50 457,385.00 1,452.71
UNITED STATES SERVICE CORP INTL COM 7,376.00 305,739.71 38.06 280,749.00 (24,990.71)
UNITED STATES SPRINT CORP (FON GROUP) COM 12,362.00 474,838.90 84.13 1,039,953.25 565,114.35
</TABLE>
-30-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES STAPLES INC COM 9,000.00 255,937.50 43.69 393,187.50 137,250.00
UNITED STATES SUPERVALU INC COM 3,300.00 53,758.10 28.00 92,400.00 38,641.90
UNITED STATES SYSCO CORP COM 9,534.00 176,711.86 27.44 261,589.13 84,877.27
UNITED STATES TANDY CORP COM 2,818.00 64,127.25 41.19 116,066.38 51,939.13
UNITED STATES TELE COMMUNICATIONS INC NEW 15,547.00 315,419.13 55.31 859,943.44 544,524.31
UNITED STATES TIMES MIRROR CO NEW COM SER A 2,076.00 87,892.11 56.00 116,256.00 28,363.89
UNITED STATES TJX COS INC NEW COM 8,900.00 132,387.50 29.00 258,100.00 125,712.50
UNITED STATES TRIBUNE CO NEW COM 3,400.00 129,359.90 66.00 224,400.00 95,040.10
UNITED STATES VIACOM INC CL B 10,024.00 412,363.28 74.00 741,776.00 329,412.72
UNITED STATES WAL MART STORES INC COM 64,228.00 1,989,546.40 81.44 5,230,567.75 3,241,021.35
UNITED STATES WALGREEN CO 14,280.00 293,071.50 58.56 836,272.50 543,201.00
UNITED STATES WENDYS INTL INC COM 3,100.00 64,974.60 21.81 67,618.75 2,644.15
UNITED STATES WINN DIXIE STORES INC 4,150.00 125,919.05 44.88 186,231.25 60,312.20
UNITED STATES DUN & BRADSTREET CORP DEL 4,834.00 43,833.05 31.56 152,573.13 108,740.08
UNITED STATES ARCHER DANIELS MIDLAND CO COM 16,641.00 301,296.16 17.19 286,017.19 (15,278.97)
UNITED STATES AEROQUIP-VICKERS INC COM 400.00 10,683.20 29.94 11,975.00 1,291.80
UNITED STATES BLACK & DECKER CORP COM 2,435.00 77,743.10 56.06 136,512.19 58,769.09
UNITED STATES COOPER TIRE & RUBR CO 1,964.00 42,387.58 20.44 40,139.25 (2,248.33)
UNITED STATES CORNING INC COM 6,764.00 245,218.18 45.00 304,380.00 59,161.82
UNITED STATES FLEETWOOD ENTERPRISES INC COM 1,100.00 29,803.30 34.75 38,225.00 8,421.70
UNITED STATES FORD MTR CO DEL COM 34,562.00 836,277.44 58.69 2,028,357.38 1,192,079.94
UNITED STATES GENERAL INSTR CORP DEL COM 4,800.00 106,392.94 33.94 162,900.00 56,507.06
UNITED STATES GENERAL MTRS CORP COM 18,516.00 970,619.14 71.56 1,325,051.25 354,432.11
UNITED STATES GENUINE PARTS CO COM 5,189.00 150,217.02 33.44 173,507.19 23,290.17
UNITED STATES GOODYEAR TIRE & RUBR CO COM 4,427.00 202,704.88 50.44 223,286.81 20,581.93
UNITED STATES MASCO CORP COM 9,264.00 182,128.20 28.75 266,340.00 84,211.80
UNITED STATES MAYTAG CORP COM 2,595.00 43,066.93 62.25 161,538.75 118,471.82
UNITED STATES NEWELL CO COM 4,473.00 167,079.71 41.25 184,511.25 17,431.54
UNITED STATES PULTTE CORP COM 900.00 25,024.30 27.81 25,031.25 6.95
UNITED STATES SNAP ON INC COM 1,405.00 47,878.86 34.81 48,911.56 1,032.70
UNITED STATES SPRINGS INDS INC CL A 600.00 29,224.60 41.44 24,862.50 (4,362.10)
UNITED STATES TOYS R US INC COM 6,982.00 200,525.40 16.88 117,821.25 (82,704.15)
UNITED STATES WHIRLPOOL CORP COM 2,356.00 118,246.30 55.38 130,463.50 12,217.20
UNITED STATES AES CORP COM 4,900.00 178,948.00 47.38 232,137.50 53,189.50
UNITED STATES AMERADA HESS CORP COM 2,455.00 139,949.25 49.75 122,136.25 (17,813.00)
UNITED STATES ANADARKO PETE CORP COM 3,300.00 112,998.90 30.88 101,887.50 (11,111.40)
UNITED STATES APACHE CORP COM 2,300.00 82,190.30 25.31 58,218.75 (23,971.55)
UNITED STATES ASHLAND INC 2,400.00 105,916.80 48.38 116,100.00 10,183.20
UNITED STATES ATLANTIC RICHFIELD CO COM 9,164.00 629,863.00 65.25 597,951.00 (31,912.00)
UNITED STATES BAKER HUGHES INC COM 8,881.00 251,132.33 17.69 157,082.69 (94,049.64)
UNITED STATES BURLINGTON RES INC COM 5,131.00 212,271.95 35.81 183,753.94 (28,518.01)
</TABLE>
-31-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES CHEVRON CORP COM 18,488.00 1,121,901.95 82.94 1,533,348.50 411,446.55
UNITED STATES COASTAL CORP COM 6,136.00 139,717.50 34.94 214,376.50 74,659.00
UNITED STATES EASTERN ENTERPRISES 600.00 21,062.00 43.75 26,250.00 5,188.00
UNITED STATES ENRON CORP COM 9,696.00 354,654.30 57.06 553,278.00 198,623.70
UNITED STATES EXXON CORP COM 69,214.00 3,274,364.85 73.13 5,061,273.75 1,786,908.90
UNITED STATES HALLIBURTON CO COM 12,592.00 397,997.61 29.63 373,038.00 (24,959.61)
UNITED STATES HELMERICH & PAYNE INC COM 1,108.00 24,410.46 19.38 21,467.50 (2,942.96)
UNITED STATES KERR MCGEE CORP 1,047.00 50,180.43 38.25 40,047.75 (10,132.68)
UNITED STATES MCDERMOTT INTL INC COM 1,228.00 28,030.56 24.69 30,316.25 2,285.69
UNITED STATES MOBIL CORP COM 22,188.00 1,228,281.80 87.13 1,933,129.50 704,847.70
UNITED STATES OCCIDENTAL PETE CORP COM 9,661.00 231,231.85 16.88 163,029.38 (68,202.47)
UNITED STATES ORYX ENERGY CO COM 2,800.00 52,949.80 13.44 37,625.00 (15,324.80)
UNITED STATES PHILLIPS PETE CO COM 7,359.00 268,324.63 42.63 313,677.38 45,352.75
UNITED STATES ROWAN COS INC COM 2,200.00 46,588.10 10.00 22,000.00 (24,588.10)
UNITED STATES SONAT INC COM 2,931.00 111,275.63 27.06 79,320.19 (31,955.44)
UNITED STATES SUNOCO INC COM 2,500.00 85,381.90 36.06 90,156.25 4,774.35
UNITED STATES TEXACO INC COM 15,420.00 714,516.23 52.88 815,332.50 100,816.27
UNITED STATES UNION PAC RES GROUP INC COM 7,024.00 156,615.39 9.06 63,655.00 (92,960.39)
UNITED STATES UNOCAL CORP COM 6,560.00 206,857.12 29.19 191,470.00 (15,387.12)
UNITED STATES USX MARATHON GROUP NEW COM 8,830.00 197,427.50 30.13 266,003.75 68,576.25
UNITED STATES WILLIAMS COS INC COM 12,200.00 268,156.48 31.19 380,487.50 112,331.02
UNITED STATES TIME WARNER INC COM 35,252.00 933,875.80 62.06 2,187,827.25 1,253,951.45
UNITED STATES AMR CORP DEL COM 5,448.00 249,294.75 59.38 323,475.00 74,180.25
UNITED STATES BURLINGTON NORTH SANTA FE CORP 13,056.00 353,495.83 33.75 440,640.00 87,144.17
UNITED STATES CSX CORP COM 6,420.00 268,891.50 41.50 266,430.00 (2,461.50)
UNITED STATES DELTA AIR LINES INC DEL COM 4,182.00 152,465.10 52.00 217,464.00 64,998.90
UNITED STATES FDX CORP COM 4,154.00 153,378.55 89.00 369,706.00 216,327.45
UNITED STATES NORFOLK SOUTHN CORP COM 10,820.00 279,724.05 31.69 342,858.75 63,134.70
UNITED STATES RYDER SYS INC COM 1,925.00 53,101.00 26.00 50,050.00 (3,051.00)
UNITED STATES SOUTHWEST AIRLS CO COM 9,350.00 92,528.40 22.44 209,790.63 117,262.23
UNITED STATES UNION PAC CORP COM 6,777.00 391,453.19 45.06 305,388.56 (86,064.63)
UNITED STATES US AIRWAYS GROUP INC COM 2,400.00 98,404.30 52.00 124,800.00 26,395.70
UNITED STATES ADOBE SYS INC DEL COM 1,800.00 80,625.20 46.75 84,150.00 3,524.80
UNITED STATES ADVANCED MICRO DEVICES INC COM 3,927.00 112,643.66 28.94 113,637.56 993.90
UNITED STATES AIRTOUCH COMMUNICATIONS INC 16,510.00 599,997.40 72.13 1,190,783.75 590,786.35
UNITED STATES AMP INC COM 6,466.00 257,227.20 52.06 336,636.13 79,408.93
UNITED STATES ANDREW CORP COM 2,300.00 86,255.70 16.50 37,950.00 (48,305.70)
UNITED STATES APPLE COMPUTER INC 4,000.00 69,587.80 40.94 163,750.00 94,162.20
UNITED STATES APPLIED MATLS INC COM 10,500.00 258,819.10 42.69 448,218.75 189,399.65
UNITED STATES ASCEND COMMUNICATIONS INC COM 6,000.00 292,081.50 65.75 394,500.00 102,418.50
UNITED STATES AUTODESK INC COM 1,500.00 43,666.00 42.69 64,031.25 20,365.25
</TABLE>
-32-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES AUTOMATIC DATA PROCESSING INC 8,688.00 343,920.40 80.19 696,669.00 352,748.60
UNITED STATES BELL ATLANTIC CORP COM 44,140.00 1,407,006.46 53.00 2,339,420.00 932,413.54
UNITED STATES BELLSOUTH CORP COM 55,496.00 1,256,605.80 49.88 2,767,863.00 1,511,257.20
UNITED STATES BMC SOFTWARE INC COM 6,300.00 358,522.70 44.56 280,743.75 (77,778.95)
UNITED STATES CABLETRON SYS INC COM 4,500.00 126,141.00 8.38 37,687.50 (88,453.50)
UNITED STATES CERIDIAN CORP COM 2,000.00 92,321.40 69.81 139,625.00 47,303.60
UNITED STATES CISCO SYS INC COM 44,885.00 1,245,741.65 92.81 4,165,889.06 2,920,147.41
UNITED STATES COMPAQ COMPUTER CORP COM 48,331.00 988,456.69 41.94 2,026,881.31 1,038,424.62
UNITED STATES COMPUTER ASSOC INTL INC COM 15,399.00 476,507.73 42.63 656,382.38 179,874.65
UNITED STATES COMPUTER SCIENCES CORP COM 4,500.00 132,538.80 64.44 289,968.75 157,429.95
UNITED STATES DATA GEN CORP COM 1,000.00 22,382.90 16.44 16,437.50 (5,945.40)
UNITED STATES DELL COMPUTER CORP COM 36,400.00 544,522.91 73.19 2,664,025.00 2,119,502.09
UNITED STATES EG & G INC 900.00 24,436.50 27.81 25,031.25 594.75
UNITED STATES ELECTRONIC DATA SYS CORP NEW 14,100.00 576,944.50 50.25 708,525.00 131,580.50
UNITED STATES EMC CORP MASS 14,400.00 288,670.10 85.00 1,224,000.00 935,329.90
UNITED STATES FIRST DATA CORP COM 12,212.00 430,760.57 31.69 386,967.75 (43,792.82)
UNITED STATES FRONTIER CORP COM 4,600.00 115,936.00 34.00 156,400.00 40,464.00
UNITED STATES GATEWAY 2000 INC COM 4,400.00 236,051.10 51.19 225,225.00 (10,826.10)
UNITED STATES HARRIS CORP DEL COM 2,006.00 74,072.93 36.63 73,469.75 (603.18)
UNITED STATES HBO & CO COM 12,900.00 305,023.60 28.69 370,068.75 65,045.15
UNITED STATES HEWLETT PACKARD CO COM 29,604.00 1,381,372.30 68.31 2,022,323.25 640,950.95
UNITED STATES HONEYWELL INC COM 3,572.00 176,968.30 75.31 269,016.25 92,047.95
UNITED STATES IBM CORP COM 26,820.00 1,844,348.90 184.75 4,954,995.00 3,110,646.10
UNITED STATES INTEL CORP CALIF COM 47,824.00 1,998,094.05 118.56 5,670,133.00 3,672,038.95
UNITED STATES KLA TENCOR CORP 2,400.00 79,381.50 43.38 104,100.00 24,718.50
UNITED STATES LOCKHEED MARTIN CORP COM 5,612.00 548,805.24 84.75 475,617.00 (73,188.24)
UNITED STATES LSI LOGIC CORP COM 4,000.00 103,718.60 16.13 64,500.00 (39,218.60)
UNITED STATES LUCENT TECHNOLOGIES INC COM 37,768.00 1,326,624.38 110.00 4,154,480.00 2,827,855.62
UNITED STATES MCI WORLDCOM INC COM 52,167.00 1,677,612.41 71.75 3,742,982.25 2,065,369.84
UNITED STATES MICRON TECHNOLOGY INC COM 6,174.00 184,496.73 50.56 312,172.88 127,676.15
UNITED STATES MICROSOFT CORP COM 71,072.00 3,095,915.50 138.69 9,856,798.00 6,760,882.50
UNITED STATES MOTOROLA INC COM 17,220.00 1,064,083.15 61.06 1,051,496.25 (12,586.90)
UNITED STATES NATIONAL SEMICONDUCTOR CORP 4,700.00 132,131.70 13.50 63,450.00 (68,681.70)
UNITED STATES NEXTEL COMMUNICATIONS INC CL A 8,100.00 261,494.10 23.63 191,362.50 (70,131.60)
UNITED STATES NOVELL INC 10,000.00 104,497.40 18.13 181,250.00 76,752.60
UNITED STATES ORACLE CORPORATION COM 27,598.00 698,354.86 43.13 1,190,163.75 491,808.89
UNITED STATES PARAMETRIC TECHNOLOGY CORP COM 7,600.00 168,506.70 16.38 124,450.00 (44,056.70)
UNITED STATES PEOPLESOFT INC COM 6,500.00 157,215.50 18.94 123,093.75 (34,121.75)
UNITED STATES PERKIN ELMER CORP COM 1,400.00 89,159.70 97.56 136,587.50 47,427.80
UNITED STATES PIONEER HI BRED INTL 6,900.00 168,196.39 27.00 186,300.00 18,103.61
UNITED STATES PITNEY BOWES INC COM 7,636.00 266,203.05 66.06 504,453.25 238,250.20
</TABLE>
-33-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES SBC COMMUNICATIONS INC COM 55,778.00 1,523,342.68 53.63 2,991,095.25 1,467,752.57
UNITED STATES SCIENTIFIC ATLANTA INC 1,900.00 37,525.80 22.81 43,343.75 5,817.95
UNITED STATES SEAGATE TECHNOLOGY COM 6,700.00 233,659.20 30.25 202,675.00 (30,984.20)
UNITED STATES SHARED MED SYS CORP 800.00 41,214.00 49.88 39,900.00 (1,314.00)
UNITED STATES SILICON GRAPHICS INC COM 5,090.00 96,666.90 12.88 65,533.75 (31,133.15)
UNITED STATES SPRINT CORP PCS COM SER 1 11,581.00 147,140.44 23.13 267,810.63 120,670.19
UNITED STATES SUN MICROSYSTEMS INC COM 10,732.00 276,768.70 85.63 918,927.50 642,158.80
UNITED STATES TEKTRONIX INC COM 1,150.00 37,234.73 30.06 34,571.88 (2,662.85)
UNITED STATES TELLABS INC COM 5,700.00 332,254.90 68.56 390,806.25 58,551.35
UNITED STATES TEXAS INSTRS INC COM 11,228.00 429,725.10 85.56 960,695.75 530,970.65
UNITED STATES UNISYS CORP 7,000.00 112,278.30 34.44 241,062.50 128,784.20
UNITED STATES UNITED TECHNOLOGIES CORP COM 6,442.00 425,145.95 108.75 700,567.50 275,421.55
UNITED STATES XEROX CORP COM 9,274.00 516,725.43 118.00 1,094,332.00 577,606.57
UNITED STATES 3COM CORP COM 10,300.00 412,803.30 44.81 461,568.75 48,765.45
UNITED STATES AIR PRODS & CHEMS INC COM 6,380.00 215,218.30 40.00 255,200.00 39,981.70
UNITED STATES ALLEGHENY TELEDYNE INC COM 5,300.00 127,106.60 20.44 108,318.75 (18,787.85)
UNITED STATES ALLIED SIGNAL INC COM 16,098.00 551,128.75 44.31 713,342.63 162,213.88
UNITED STATES ALUMINUM CO AMER COM 5,550.00 311,697.98 74.56 413,821.88 102,123.90
UNITED STATES ASARCO INC 781.00 17,932.12 15.06 11,763.81 (6,168.31)
UNITED STATES AVERY DENNISON CORP COM 3,238.00 125,569.85 45.06 145,912.38 20,342.53
UNITED STATES BATTLE MTN GOLD CO COM 6,200.00 46,389.80 4.13 25,575.00 (20,814.80)
UNITED STATES BEMIS INC COM 1,200.00 47,686.60 37.94 45,525.00 (2,161.60)
UNITED STATES BETHLEHEM STL CORP COM 3,600.00 39,816.10 8.38 30,150.00 (9,666.10)
UNITED STATES BOISE CASCADE CORP COM 1,200.00 37,017.80 31.00 37,200.00 182.20
UNITED STATES BROWNING FERRIS INDS INC COM 4,711.00 149,751.45 28.44 133,969.06 (15,782.39)
UNITED STATES CHAMPION INTL CORP COM 2,585.00 104,605.05 40.50 104,692.50 87.45
UNITED STATES CYPRUS AMAX MINERALS CO COM 2,397.00 62,225.08 10.00 23,970.00 (38,255.08)
UNITED STATES DOW CHEM CO COM 6,267.00 442,798.53 90.94 569,905.31 127,106.78
UNITED STATES DU PONT E I DE NEMOURS & CO 32,274.00 1,532,461.55 53.06 1,712,539.13 180,077.58
UNITED STATES ENGELHARD CORP 4,000.00 83,423.90 19.50 78,000.00 (5,423.90)
UNITED STATES FMC CORP NEW COM 1,200.00 84,849.00 56.00 67,200.00 (17,649.00)
UNITED STATES FREEPORT MCMORAN COPPER B 4,300.00 112,280.20 10.44 44,881.25 (67,398.95)
UNITED STATES GEORGIA PAC CORP COM 2,388.00 128,665.44 58.56 139,847.25 11,181.81
UNITED STATES GOODRICH B F CO 1,800.00 74,548.80 35.88 64,575.00 (9,973.80)
UNITED STATES GRACE WR & CO DEL NEW COM 1,843.00 21,929.94 15.69 28,912.06 6,982.12
UNITED STATES GREAT LAKES CHEM CORP COM 1,400.00 58,026.11 40.00 56,000.00 (2,026.11)
UNITED STATES HARNISCHFEGER INDS INC COM 1,100.00 32,197.00 10.19 11,206.25 (20,990.75)
UNITED STATES HERCULES INC COM 2,676.00 120,870.80 27.38 73,255.50 (47,615.30)
UNITED STATES HOMESTAKE MNG CO COM 6,400.00 79,871.60 9.19 58,800.00 (21,071.60)
UNITED STATES INTERNATIONAL PAPER CO COM 8,610.00 350,293.88 44.81 385,835.63 35,541.75
UNITED STATES LOUISIANA PAC CORP COM 2,900.00 71,733.00 18.31 53,106.25 (18,626.75)
</TABLE>
-34-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES MEAD CORP COM 2,794.00 80,278.38 29.31 81,899.13 1,620.75
UNITED STATES MILACRON INC COM 700.00 14,520.40 19.25 13,475.00 (1,045.40)
UNITED STATES MINNESOTA MNG & MFG CO COM 11,652.00 806,301.95 71.13 828,748.50 22,446.55
UNITED STATES MONSANTO CO COM 17,990.00 459,495.88 47.50 854,525.00 395,029.12
UNITED STATES NACCO INDS INC CL A 300.00 15,068.50 92.00 27,600.00 12,531.50
UNITED STATES NALCO CHEM CO COM 1,600.00 49,526.00 31.00 49,600.00 74.00
UNITED STATES NEWMONT MNG CORP COM 4,457.00 169,673.61 18.06 80,504.56 (89,169.05)
UNITED STATES NUCOR CORP 2,246.00 112,230.80 43.25 97,139.50 (15,091.30)
UNITED STATES OWENS ILL INC NEW 4,500.00 168,396.60 30.63 137,812.50 (30,584.10)
UNITED STATES PHELPS DODGE CORP COM 1,462.00 99,375.45 50.88 74,379.25 (24,996.20)
UNITED STATES POTLATCH CORP COM 886.00 41,082.62 36.88 32,671.25 (8,411.37)
UNITED STATES PPG INDS INC COM 5,188.00 237,155.90 58.25 302,201.00 65,045.10
UNITED STATES PRAXAIR INC COM 4,487.00 150,727.68 35.25 158,166.75 7,439.07
UNITED STATES REYNOLDS METALS CO COM 1,800.00 105,411.00 52.69 94,837.50 (10,573.50)
UNITED STATES ROHM & HAAS CO COM 4,500.00 142,644.00 30.13 135,562.50 (7,081.50)
UNITED STATES SEALED AIR CORP NEW COM 2,155.00 85,134.74 51.06 110,039.69 24,904.95
UNITED STATES SIGMA ALDRICH CORP 2,600.00 67,683.02 29.38 76,375.00 8,691.98
UNITED STATES TEMPLE INLAND INC COM 1,800.00 91,970.80 59.31 106,762.50 14,791.70
UNITED STATES UNION CAMP CORP COM 2,156.00 106,762.80 67.50 145,530.00 38,767.20
UNITED STATES UNION CARBIDE CORP COM 3,887.00 126,346.00 42.50 165,197.50 38,851.50
UNITED STATES USX U S STL GROUP COM 2,198.00 60,401.50 23.00 50,554.00 (9,847.50)
UNITED STATES VENATOR GROUP INC COM 3,700.00 71,881.00 6.44 23,818.75 (48,062.25)
UNITED STATES WASTE MGMT INC DEL COM 16,412.00 781,329.84 46.63 765,209.50 (16,120.34)
UNITED STATES WESTVACO CORP COM 2,700.00 75,460.35 26.81 72,393.75 (3,066.60)
UNITED STATES WEYERHAEUSER CO COM 5,714.00 256,592.50 50.81 290,342.63 33,750.13
UNITED STATES WILLAMETTE INDS INC 3,000.00 99,216.00 33.50 100,500.00 1,284.00
UNITED STATES WORTHINGTON INDS INC COM 2,500.00 49,990.60 12.50 31,250.00 (18,740.60)
UNITED STATES ARMSTRONG WORLD INDS INC COM 1,300.00 88,919.80 60.31 78,406.25 (10,513.55)
UNITED STATES BOEING CO COM 28,564.00 941,859.71 32.63 931,900.50 (9,959.21)
UNITED STATES BRIGGS & STRATTON CORP 800.00 37,616.10 49.88 39,900.00 2,283.90
UNITED STATES CASE CORP COM 1,900.00 94,200.50 21.81 41,443.75 (52,756.75)
UNITED STATES CATERPILLAR INC 10,410.00 385,656.60 46.00 478,860.00 93,203.40
UNITED STATES CENTEX CORP COM 1,800.00 37,711.80 45.06 81,112.50 43,400.70
UNITED STATES COOPER INDS INC COM 2,837.00 120,518.65 47.69 135,289.44 14,770.79
UNITED STATES CRANE CO 1,600.00 49,969.60 30.19 48,300.00 (1,669.60)
UNITED STATES CUMMINS ENGINE INC COM 1,200.00 58,574.00 35.50 42,600.00 (15,974.00)
UNITED STATES DANA CORP 4,670.00 153,923.95 40.88 190,886.25 36,962.30
UNITED STATES DANAHER CORP COM 3,900.00 183,378.00 54.31 211,818.75 28,440.75
UNITED STATES DEERE & CO COM 6,446.00 308,403.00 33.13 213,523.75 (94,879.25)
UNITED STATES DOVER CORP COM 6,108.00 123,156.35 36.63 223,705.50 100,549.15
UNITED STATES EATON CORP 2,009.00 112,802.13 70.69 142,011.19 29,209.06
</TABLE>
-35-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES EMERSON ELEC CO COM 12,696.00 557,557.60 60.50 768,108.00 210,550.40
UNITED STATES FLUOR CORP 2,121.00 124,023.75 42.56 90,275.06 (33,748.69)
UNITED STATES FOSTER WHEELER CORP 800.00 14,759.90 13.19 10,550.00 (4,209.90)
UNITED STATES GENERAL DYNAMICS CORP COM 3,500.00 116,985.00 58.63 205,187.50 88,202.50
UNITED STATES GENERAL ELEC CO COM 93,410.00 4,248,526.40 102.06 9,533,658.13 5,285,131.73
UNITED STATES GRAINGER W W INC COM 2,666.00 100,475.13 41.63 110,972.25 10,497.12
UNITED STATES ILLINOIS TOOL WKS INC COM 7,396.00 327,937.00 58.00 428,968.00 101,031.00
UNITED STATES INGERSOLL RAND CO 4,763.00 127,482.27 46.94 223,563.31 96,081.04
UNITED STATES ITT INDS INC IND COM 2,700.00 74,854.10 39.75 107,325.00 32,470.90
UNITED STATES JOHNSON CTLS INC COM 2,634.00 101,574.21 59.00 155,406.00 53,831.79
UNITED STATES KAUFMAN & BROAD HOME CORP COM 1,200.00 28,174.00 28.75 34,500.00 6,326.00
UNITED STATES NAVISTAR INTL CORP NEW COM 1,800.00 52,648.90 28.50 51,300.00 (1,348.90)
UNITED STATES NORTHROP GRUMMAN CORP COM 2,100.00 158,598.30 73.13 153,562.50 (5,035.80)
UNITED STATES OWENS CORNING COM 1,700.00 63,377.80 35.44 60,243.75 (3,134.05)
UNITED STATES PACCAR INC 2,104.00 87,284.80 41.13 86,527.00 (757.80)
UNITED STATES PALL CORP COM 3,493.00 73,432.50 25.31 88,416.56 14,984.06
UNITED STATES PARKER HANNIFIN CORP COM 3,049.00 72,619.75 32.75 99,854.75 27,235.00
UNITED STATES RAYCHEM CORP COM 2,300.00 79,001.00 32.31 74,318.75 (4,682.25)
UNITED STATES RAYTHEON CO CL B 9,704.00 428,452.10 53.25 516,738.00 88,285.90
UNITED STATES ROCKWELL INTL CORP NEW COM 5,606.00 239,790.49 48.56 272,241.38 32,450.89
UNITED STATES STANLEY WKS 2,300.00 81,332.80 27.75 63,825.00 (17,507.80)
UNITED STATES TENNECO INC NEW COM 4,491.00 182,123.06 34.06 152,974.69 (29,148.37)
UNITED STATES TEXTRON INC COM 4,698.00 179,986.93 75.94 356,754.38 176,767.45
UNITED STATES THERMO ELECTRON CORP COM 4,200.00 149,965.40 16.94 71,137.50 (78,827.90)
UNITED STATES THOMAS & BETTS CORP COM 1,700.00 75,802.80 43.31 73,631.25 (2,171.55)
UNITED STATES TIMKEN CO 1,500.00 47,739.95 18.88 28,312.50 (19,427.45)
UNITED STATES TRW INC 3,440.00 152,116.30 56.19 193,285.00 41,168.70
UNITED STATES ALLTEL CORP 7,749.00 291,750.38 59.81 463,487.06 171,736.68
UNITED STATES AMEREN CORP 3,900.00 154,915.90 42.69 166,481.25 11,565.35
UNITED STATES AMERICAN ELEC PWR INC COM 5,478.00 221,188.10 47.06 257,808.38 36,620.28
UNITED STATES BALTIMORE GAS & ELEC CO COM 4,152.00 113,898.24 30.88 128,193.00 14,294.76
UNITED STATES CAROLINA PWR & LT CO COM 4,266.00 142,970.65 47.06 200,768.63 57,797.98
UNITED STATES CENTRAL & SOUTH WEST CORP COM 5,656.00 133,134.70 27.44 155,186.50 22,051.80
UNITED STATES CINERGY CORP COM 4,417.00 137,614.33 34.38 151,834.38 14,220.05
UNITED STATES COLUMBIA ENERGY GROUP COM 2,200.00 90,418.39 57.75 127,050.00 36,631.61
UNITED STATES CONSOLIDATED EDISON INC COM 6,427.00 204,961.35 52.88 339,827.63 134,866.28
UNITED STATES CONSOLIDATED NAT GAS CO COM 2,974.00 136,553.80 54.00 160,596.00 24,042.20
UNITED STATES DOMINION RES INC VA COM 5,382.00 207,086.35 46.75 251,608.50 44,522.15
UNITED STATES DTE ENERGY CO COM 4,014.00 114,928.60 42.88 172,100.25 57,171.65
UNITED STATES DUKE ENERGY CORP COM 10,351.00 447,185.37 64.06 663,110.94 215,925.57
UNITED STATES EDISON INTL COM 10,026.00 195,533.05 27.88 279,474.75 83,941.70
</TABLE>
-36-
<PAGE>
<TABLE>
<CAPTION>
Market Market Unrealized
Country Name Description Units Cost Price Value Gain Loss
- ------------ ----------- ------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES ENTERGY CORP NEW COM 7,088.00 179,926.10 31.13 220,614.00 40,687.90
UNITED STATES FIRSTENERGY CORP COM 6,390.00 157,661.80 32.56 208,074.38 50,412.58
UNITED STATES FPL GROUP INC COM 5,283.00 216,406.88 61.63 325,564.88 109,158.00
UNITED STATES GPU INC COM 3,800.00 136,289.30 44.19 167,912.50 31,623.20
UNITED STATES GTE CORP COM 27,393.00 1,161,393.68 65.00 1,780,545.00 619,151.32
UNITED STATES HOUSTON INDS INC COM 7,958.00 168,667.63 32.13 255,650.75 86,983.12
UNITED STATES NEW CENTURY ENERGIES INC COM 3,200.00 156,064.00 48.75 156,000.00 (64.00)
UNITED STATES NIAGARA MOHAWK PWR CORP COM 4,900.00 56,592.30 16.13 79,012.50 22,420.20
UNITED STATES NICOR INC COM 1,500.00 42,467.50 42.25 63,375.00 20,907.50
UNITED STATES NORTHERN STS PWR CO MINN COM 4,200.00 100,441.15 27.75 116,550.00 16,108.85
UNITED STATES ONEOK INC NEW COM 878.00 24,123.46 36.13 31,717.75 7,594.29
UNITED STATES P P & L RESOURCES INC COM 4,200.00 98,387.40 27.88 117,075.00 18,687.60
UNITED STATES PACIFICORP COM 8,334.00 170,085.20 21.06 175,534.88 5,449.68
UNITED STATES PECO ENERGY CO COM 6,521.00 165,466.05 41.63 271,436.63 105,970.58
UNITED STATES PEOPLES ENERGY CORP ILL COM 1,100.00 38,597.00 39.88 43,862.50 5,265.50
UNITED STATES PG&E CORP COM 10,881.00 295,490.95 31.50 342,751.50 47,260.55
UNITED STATES PUBLIC SVC ENTERPRISE GROUP 6,320.00 179,666.40 40.00 252,800.00 73,133.60
UNITED STATES SEMPRA ENERGY COM 6,559.00 164,617.71 25.38 166,434.63 1,816.92
UNITED STATES SOUTHERN CO COM 19,552.00 431,661.70 29.06 568,230.00 136,568.30
UNITED STATES TEXAS UTILS CO COM 7,910.00 300,095.32 46.69 369,298.13 69,202.81
UNITED STATES U S WEST INC NEW COM 14,468.00 440,371.52 64.63 934,994.50 494,622.98
UNITED STATES UNICOM CORP COM 6,337.00 166,874.20 38.56 244,370.56 77,496.36
UNITED STATES EASTMAN CHEM CO COM 1,996.00 106,641.80 44.75 89,321.00 (17,320.80)
DIVIDENDS RECEIVABLE -- 304,498.84 1.00 304,498.84 --
---------------------------------------------------------------
$175,055,152.14 $285,779,812.63 $110,724,660.49
Reconciling Items: Deposit in Transit 82,350.00 82,350.00
Other Miscellaneous Items 26,096.00 26,096.00
----------------- ------------------
175,163,598.14 285,888,258.63
</TABLE>
-37-
<PAGE>
<TABLE>
<CAPTION>
Pooled Separate Account Managed by Dwight Asset Management Group
Asset Listing
December 31, 1998
12/31/98 12/31/98
Original Current 12/31/98 12/31/98 Purchase Moody's/S&P Principal Accrued Market
Face Amt Face Amt Bond Coupon Price Yield Price Rating Value Interest Value
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CMBS - Conduit
6,000,000 5,971,231 CSFB 5.960% 100.406250 5.92% 100.766 Aaa AAA 5,995,488.85 19,771.41 6,015,260.26
98-C2 A1
- ----------------------------------------------------------------------------------------------------------------------------------
Asset Backed
8,000,000 8,000,000 EQCC 6.560% 101.328125 6.16% 102.016 Aaa AAA 8,106,250.00 23,324.44 8,129,574.44
96-1
A4
- ----------------------------------------------------------------------------------------------------------------------------------
Cash
0 CASH 0.000% 100.000000 100.000 Aaa AAA 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------------------
14,000,000 13,971,231 6.06% Aaa AAA 14,101,738,85 43,095.85 14,144,834.70
==================================================================================================================================
</TABLE>
-38-
<PAGE>
State Street Research and Management Portfolio December 31, 1998
BONDS
<TABLE>
<CAPTION>
U S Government
Shares/ Market Total % Total %
Par Value Security Coupon Maturity Pice Book Value Market Market Income Yield
--------- -------- ------ -------- ---- ---------- ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U S Treasury
2,625,000 U S Treasury Bond 12 8/15/2013-08 152.672 3,813,708 4,007,640 1.6 315,000 5.03
6,200,000 U S Treasury Bond 8.75 5/15/2017 139.109 8,155,644 8,624,758 3.4 542,500 5.37
3,050,000 U S Treasury Bond 8.5 2/15/2020 138.656 3,979,546 4,229,008 1.7 259,250 5.41
6,850,000 U S Treasury Bond 6.875 8/15/2025 121.203 7,764,553 8,302,406 3.3 470,938 5.37
14,600,000 U S Treasury Bond 6.625 2/15/2027 118.281 16,648,648 17,269,026 6.9 967,250 5.36
2,509,377 U S Treasury Inflation
Indexed Note 3.625 4/15/2028 97 2,452,411 2,434,096 1 90,965 3.8
2,225,000 U S Treasury Note 7.875 11/15/2004 115.859 2,597,596 2,577,863 1 175,219 4.75
2,950,000 U S Treasury Note 6.625 5/15/2007 112.453 3,342,723 3,317,364 1.3 195,438 4.8
---------- ---------- ---- ---------
Total U S Treasury 48,754,828 50,762,160 20.2 3,016,559
U S Treasury
Zero Coupon
9,125,000 U S Tsy Strip 0 5/15/2003 81.588 6,662,071 7,444,905 3 0 4.71
U S Tsy Strip 0 5/15/2007 66.684 5,900,289 6,384,993 2.5 0 4.9
---------- ---------- ---- ---
Total U S Treasury Zero Coupon 12,562,360 13,829,898 5.5 0
U S Agency
7,500,000 FHLMC Reference Note 5.125 10/15/2008 99.047 7,332,450 7,428,525 3 384,375 5.25
1,425,000 Federal National Mtg
Assoc Deb 7.875 2/24/2005 113.453 1,624,013 1,616,705 0.6 112,219 5.28
2,500,000 Federal National Mtg
Assoc Benchmark 6 5/15/2008 105.562 2,704,800 2,639,050 1.1 150,000 5.24
1,200,017 Guaranteed Export Trust
Nts Ser 95-A 6.28 6/15/2000-04 102.47 1,200,018 1,229,658 0.5 75,361 4.51
776,486 Guaranteed Export Trust
Nts Ser 95-B 6.13 6/15/2000-04 102.47 776,486 795,665 0.3 47,599 5.19
---------- ---------- ---- ---------
Total U S Agency 13,637,766 13,709,604 5.5 769,553
U S Agency Mortgage
719,207 Fed Home Ln Mtg Gold
PC# A01588 9 6/01/2017 105.403 773,935 758,066 0.3 64,729 6.76
2,035,000 FNMA (GNMA) REMIC
G93-26-PJ PAC 6.5 2/25/2004-21 101.375 1,916,716 2,062,981 0.8 132,275 6.16
598,599 Fed Natl Mtg Assoc
FHA-VA PT# 3218 7.75 9/01/2008 102.445 600,470 613,235 0.2 46,391 6.23
5,075,000 Fed Natl Mtg Assoc
(Feb) TBA 6 2/11/2029 98.563 5,021,078 5,002,047 2 304,500 6.1
10,125,000 Fed Natl Mtg Assoc
(Jan) TBA 6 1/14/2029 98.563 9,974,254 9,979,453 4 607,500 6.1
800,000 FNMA Dwarf 15 Yr
(Feb) TBA 6 2/18/2014 100.156 801,125 801,250 0.3 48,000 5.98
1,699,630 Fed Natl Mtg Assoc
20 Yr PT# 303888 7.5 5/01/2016 103.237 1,730,701 1,754,647 0.7 127,472 6.68
2,075,834 FNMA Dwarf 15 Yr # 313839 6.5 11/01/2012 101.406 2,103,080 2,105,020 0.8 134,929 6.34
4,917,196 FNMA Dwarf 15 Yr # 313958 6.5 1/01/2013 101.406 4,993,644 4,986,333 2 319,618 6.35
</TABLE>
-39-
<PAGE>
<TABLE>
<CAPTION>
Shares/ Market Total % Total %
Par Value Security Coupon Maturity Pice Book Value Market Market Income Yield
--------- -------- ------ -------- ---- ---------- ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7,953,347 Fed Natl Mtg Assoc PT# 323422 6.5 11/01/2028 100.656 7,954,590 8,005,521 3.2 516,968 6.45
726,279 Fed Natl Mtg Assoc PT# 398197 6.5 1/01/2028 100.656 731,273 731,044 0.3 47,208 6.39
1,001,022 Fed Natl Mtg Assoc PT# 433686 6.5 11/01/2028 100.656 1,007,905 1,007,590 0.4 65,066 6.4
989,636 Fed Natl Mtg Assoc PT# 433694 6.5 11/01/2028 100.656 996,440 996,129 0.4 64,326 6.4
3,440,260 Fed Natl Mtg Assoc PT# 434908 6.5 9/01/2028 100.656 3,440,798 3,462,828 1.4 223,617 6.45
1,002,585 Fed Natl Mtg Assoc PT# 440698 6.5 11/01/2028 100.656 1,009,479 1,009,163 0.4 65,168 6.45
1,009,068 Fed Natl Mtg Assoc PT# 440718 6.5 11/01/2028 100.656 1,016,006 1,015,688 0.4 65,589 6.45
1,003,174 Fed Natl Mtg Assoc PT# 444478 6.5 10/01/2028 100.656 1,010,071 1,009,755 0.4 65,206 6.4
1,000,821 Fed Natl Mtg Assoc PT# 452026 6.5 11/01/2028 100.656 1,007,702 1,007,386 0.4 65,053 6.45
995,095 Fed Natl Mtg Assoc PT# 452037 6.5 11/01/2028 100.656 1,001,937 1,001,624 0.4 64,681 6.45
767,606 GNMA Midget 15 YR # 389593 6.5 7/15/2009 102 719,871 782,959 0.3 49,894 5.94
1,516,936 GNMA Midget 15 Yr # 389922 7.5 6/15/2009 103.031 1,548,461 1,562,915 0.6 113,770 6.38
681,368 GNMA Midget 15 Yr # 780303 6.5 2/15/2009 101.822 686,479 693,783 0.3 44,289 6.25
1,530,802 GNMA Midget 15 Yr # 780462 7.5 6/15/2009 103.062 1,559,027 1,577,676 0.6 114,810 6.31
1,516,942 GNMA Midget 15 Yr # 780316 6.5 7/15/2009 101.822 1,529,742 1,544,581 0.6 98,601 6.26
1,250,055 GNMA Midget 15 Yr # 780419 7.5 12/15/2009 103.031 1,273,396 1,287,944 0.5 93,754 6.38
583,857 Govt Natl Mtge Assoc Mod PT# 780058 7 1/15/2025 102.343 527,023 597,537 0.2 40,870 6.81
9,303,521 Govt Natl Mtge Assoc Mod PT# 780896 7 11/15/2028 102.312 9,501,948 9,518,619 3.8 651,247 6.82
6,435,000 Govt Natl Mtge Assoc Mod PT# 780912 6.5 11/15/2028 101 6,460,137 6,499,350 2.6 418,275 6.42
----------- ----------- ---- ---------
Total U S Agency Mortgage 70,897,286 71,375,126 28.5 4,653,809
Total U S Government 145,852,240 149,676,788 59.7 8,439,921
Yankee
2,600,000 Junta De Andalucia Note 6.75 10/15/2017 107.287 2,590,120 2,789,462 1.1 175,500 6.09
2,500,000 Hellenic Republic of Greece
Sr Note 6.95 3/04/2008 108.251 2,622,875 2,706,263 1.1 173,750 5.78
1,350,000 Province Of Manitoba Note 5.5 10/01/2008 101.12 1,341,387 1,365,120 0.5 74,250 5.35
----------- ----------- ---- ---------
Total Yankee 6,554,382 6,860,845 2.7 423,500
U S Corporate
Bank
1,225,000 Advanta Master Trust 1996-A Al 6 11/15/2003-05 101.437 1,223,086 1,242,603 0.5 73,500 5.66
1,925,000 Capital One Bank Sr Note 6.15 6/01/2001 98.516 1,930,429 1,896,433 0.8 118,388 6.82
5,000,000 Chase Manhattan Master
Trust 97-2 A 6.3 8/15/2000 101.468 4,998,438 5,073,400 2 315,000 5.41
5,200,000 MBNA Master Credit Card
Tr 11 1998-J 5.25 10/15/2003 99.156 5,189,236 5,156,128 2.1 273,000 5.45
3,100,000 MBNA Corp MT Note 6.12 8/13/2001 98.965 3,122,785 3,067,915 1.2 189,720 6.55
1,225,000 Prime Credit Card Master
Tr 1996-IA 6.7 5/15/2001 102.718 1,221,842 1,258,296 0.5 82,075 5.46
----------- ----------- ---- ---------
Total Bank 17,685,815 17,694,774 7.1 1,051,683
Finance
2,450,000 AT&T Capital Corp 7.5 11/15/2000 101.478 2,451,274 2,486,211 1 183,750 6.64
2,250,000 Associates Corp of N A Sr Note 5.6 1/15/2001 100.389 2,137,860 2,258,753 0.9 126,000 5.39
2,100,000 Associates Corp NA Note 6.75 7/15/2001 103.088 2,081,919 2,164,848 0.9 141,750 5.43
2,425,000 Discover Card Master Trust
1998-7 A 5.6 11/15/2003-03 100.438 2,423,484 2,435,609 1 135,800 5.49
1,925,000 General Electric Cap Corp
MT Note 6.15 11/05/2001 102.628 1,951,642 1,975,589 0.8 118,388 5.14
2,500,000 Household Finance Co MT Note 5.875 9/25/2004 100.107 2,500,000 2,502,675 1 146,875 5.85
2,500,000 LA County CA Taxable (MBIA)
Ser 94-D 6.73 6/30/2004 105.576 2,500,000 2,639,400 1.1 168,250 5.54
1,125,000 NJ Econ Dev Authority (MBIA) 7.425 2/15/2029 114.639 1,276,583 1,289,689 0.5 83,531 6.33
</TABLE>
-40-
<PAGE>
<TABLE>
<CAPTION>
Shares/ Market Total % Total %
Par Value Security Coupon Maturity Pice Book Value Market Market Income Yield
--------- -------- ------ -------- ---- ---------- ------ ------ ------ -----
<C> <S> <C> <C> <C> <C> <C> <C> <C> <C>
2,500,000 Norwest Financial Inc Note 6.1 10/01/2000 101.142 2,494,600 2,528,550 1 152,500 5.4
5,100,000 Pacificorp Aust AMBAC 144A Note 6.15 1/15/2008 102.786 5,081,589 5,242,086 2.1 313,650 5.75
2,011,530 Railcar Leasing 1997-1 A 1 144A SEQ 6.75 7/15/2002-06 103.219 1,983,086 2,076,278 0.8 135,778 5.73
700,000 Sears Credit Acct Master Tr II 95-2 8.1 6/15/2000-04 102.562 699,016 717,934 0.3 56,700 6.23
2,600,000 Sears Credit Acct Master tr 98-2A 5.25 12/15/2003-04 98.75 2,575,467 2,567,500 1 136,500 5.54
1,275,000 Sears Credit Acct Master Tr II 97-1 6.2 7/15/2002-07 101.687 1,263,924 1,296,509 0.5 79,050 5.67
----------- ---------- ---- ---------
Total Finance 31,420,443 32,181,630 12.8 1,978,522
Mortgage
2,225,000 CS First Boston Mtg Sec 97-C2 A2 SEQ 6.52 7/17/2005-07 103.219 2,235,777 2,296,618 0.9 145,070 5.92
1,656,288 DMARC Commercial Mtge 98-C1 A1 6.22 9/15/2003-07 101.313 1,663,643 1,678,035 0.7 103,021 5.91
SEQ
1,192,238 GMAC Comm Mtge Corp 97-C2 A1 SEQ 6.451 12/15/2003-04 102.563 1,198,200 1,222,793 0.5 76,911 5.85
3,726,412 GMAC Comm Mtge Corp 98-C1 A1 SEQ 6.411 11/15/2003-07 102.298 3,760,774 3,812,026 1.5 238,900 5.86
1,204,378 Lehman Commercial Mtge 98-C1 A1 SEQ 6.33 11/18/2002-04 101.781 1,210,753 1,225,832 0.5 76,237 5.81
1,225,000 Lehman Commercial Mtge 98-C4 A1A 5.87 8/15/2003-06 100.198 1,231,201 1,227,419 0.5 71,908 5.82
SEQ
1,804,919 Pru Home Mtg Series 93-45 A-2 TAC 6.75 11/25/2001-08 100.062 1,788,351 1,806,039 0.7 121,832 6.72
1,312,743 Pru Home Mtg Series 94-15 A-7 6.8 5/25/2001-24 100.625 1,309,256 1,320,948 0.5 89,267 6.13
2,434,253 Lehman Commercial Mtge 97-LLI A1 6.79 6/12/2002-04 103.5 2,468,209 2,519,452 1 165,286 5.66
----------- ---------- ---- ---------
SEQ
Total Mortgage 16,866,163 17,109,163 6.8 1,088,432
Industrial
3,000,000 Cargill, Inc. 144A Senior Note 7.375 10/01/2025 106.25 2,983,800 3,187,500 1.3 221,250 6.86
2,944,000 Chevron Corp Prof Sharing Amort Nt 8.11 12/01/2001-04 108.294 3,157,164 3,188,175 1.3 238,758 5.02
2,750,000 Coca-Cola Enterprise Deb 5.75 11/01/2008 98.207 2,742,548 2,700,693 1.1 158,125 5.99
1,350,000 News America Holdings Note 6.625 1/09/2008 102.902 1,348,286 1,389,177 0.6 89,438 6.2
850,000 News America, Inc Deb 7.25 5/18/2018 102.168 845,903 868,428 0.3 61,625 7.04
575,000 News America, Inc Deb 7.125 4/08/2028 99.776 556,157 573,712 0.2 40,969 7.14
----------- ---------- ---- ---------
Total Industrial 11,633,857 11,907,685 4.7 810,165
Electric Utility
2,175,000 PG&E-1 Rate Reduction Certs A-6 6.32 9/25/2003-05 102.895 2,232,724 2,237,955 0.9 137,460 5.61
1,400,000 PG&E-1 Rate Reduction Certs A-7 6.42 9/25/2005-08 103.843 1,421,000 1,453,802 0.6 89,880 5.72
2,375,000 SDE-1 Rate Reduction Certs A-6 6.31 9/25/2008 103.312 2,469,907 2,453,660 1 149,863 5.86
----------- ---------- ---- ---------
Total Electric Utility 6,123,631 6,145,417 2.5 377,203
Telephone
2,700,000 U.S. West Capital Funding Bond 6.125 7/15/2002 102.085 2,796,633 2,756,295 1.1 165,375 5.47
2,700,000 Worldcom, Inc Sr Note 6.125 8/15/2001 101.598 2,697,192 2,743,146 1.1 165,375 5.46
----------- ---------- ---- ---------
Total Telephone 5,493,825 5,499,441 2.2 330,750
Total U S Corporate 89,223,734 90,538,111 36.1 5,636,753
----------- ---------- ---- ---------
TOTAL BONDS 241,630,356 247,075,744 98.5 14,500,175 5.76
</TABLE>
-41-
<PAGE>
<TABLE>
<CAPTION>
Shares/ Market Total % Total %
Par Value Security Coupon Maturity Pice Book Value Market Market Income Yield
--------- -------- ------ -------- ---- ---------- ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHORT TERM OBLIGATIONS
8,000,000 American Express Credit Corp IBN 5.8 1/06/1999 100 8,000,000 8,000,000 3.2 470,448 5.88
9,566,522 State Street Bank Govt STIF 100 9,566,523 9,566,523 3.8 516,009 5.39
---------- ---------- -------
TOTAL SHORT TERM OBLIGATIONS 17,566,523 17,566,523 7 986,457 5.62
ACCOUNT SUMMARY
Total Securities 259,196,879 264,642,267 105.5 15,486,631
Cash -16,503,847 -16,503,847 -6.6
Income Accruals 2,623,905 2,623,905 1
----------- ----------- -
Total Assets 245,316,937 250,762,325 100 15,486,631
*THE PORTFOLIO YIELD IS THE AVERAGE OF YIELD TO MATURITY ON BONDS AND
BOND EQUIVALENT YIELD TO MATURITY ON SHORT TERM OBLIGATIONS ADJUSTED FOR TRADE CASH.
THE CURRENT YIELD ON THE PORTFOLIO IS 5.90%.
THE YIELD FIGURES FOR BONDS ARE YIELDS TO MATURITY.
THE YIELD FIGURES FOR SHORT-TERM OBLIGATIONS ARE BOND-EQUIVALENT YIELDS TO MATURITY.
NUMBERS MAY NOT ADD TO TOTALS DUE TO ROUNDING.
</TABLE>
G/Stein5/112
-42-
<PAGE>
CHAMPION INTERNATIONAL CORPORATION
SAVINGS PLAN FOR HOURLY EMPLOYEES #158
FEIN: 13-1427390
FINANCIAL STATEMENTS
AS OF
DECEMBER 31, 1998 AND 1997
TOGETHER WITH
AUDITORS' REPORT
<PAGE>
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Table of Contents
<TABLE>
<CAPTION>
Page(s)
-----------
<S> <C>
Report of Independent Public Accountants 1-2
Statement of Net Assets Available for Benefits as of 3
December 31, 1998
Statement of Net Assets Available for Benefits as of 4
December 31, 1997
Statement of Changes in Net Assets Available for Benefits 5-6
for the Year Ended December 31, 1998
Notes to Financial Statements - 7-14
December 31, 1998 and 1997
Schedule I - Item 27 (a) Schedule of Assets Held for Investment 15-20
Purposes - December 31, 1998
Schedule II - Item 27 (d) Schedule of Reportable Transactions for 21-22
the Year Ended December 31, 1998
Schedule III - Certification of Receipt of Annual Statement of Assets 23-41
And Liabilities of Commingled Trust Funds - Supplement to Item 27(a) -
Schedule of Assets Held for Investment Purposes
</TABLE>
<PAGE>
Report of Independent Public Accountants
----------------------------------------
To the Board of Directors and the
Pension and Employee Benefits Committee of
Champion International Corporation:
We have audited the accompanying statements of net assets available for
benefits of the CHAMPION INTERNATIONAL CORPORATION SAVINGS PLAN FOR HOURLY
EMPLOYEES #158 as of December 31, 1998 and 1997 and the related statement of
changes in net assets available for benefits for the year ended December 31,
1998. These financial statements and the schedules referred to below are the
responsibility of the Plan Administrator. Our responsibility is to express an
opinion on these financial statements and schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
Plan Administrator, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Plan as
of December 31, 1998 and 1997, and the changes in net assets available for
benefits for the year ended December 31, 1998, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental schedules of
assets held for investment purposes as of December 31, 1998 and reportable
transactions for the year ended December 31, 1998 are presented for the purpose
of additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The fund
1
<PAGE>
information in the statements of net assets available for benefits and the
statement of changes in net assets available for benefits is presented for
purposes of additional analysis rather than to present the net assets available
for plan benefits and changes in net assets available for plan benefits of each
fund. The supplemental schedules and fund information have been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole. As explained in the notes thereto,
information certified by the trustee and presented in the schedules of
investments and reportable transactions does not disclose the historical cost of
certain investments. Disclosure of this information is required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974.
/s/ ARTHUR ANDERSEN LLP
Cincinnati, Ohio
May 24, 1999
2
<PAGE>
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Statement of Net Assets Available for Benefits
As of December 31, 1998
<TABLE>
<CAPTION>
Company Directed Participant Directed
------------------ ---------------------------------------------
S&P 500
Company Company Stable Index
Stock Fund Stock Fund Value Fund Fund
------------- ------------- ------------ ---------
INVESTMENTS (Notes 1, 2, 3 & 4):
<S> <C> <C> <C> <C>
Common Stock, Champion International Corporation $ 18,989,125 $ 3,243,350 $ -- $ --
Master Trust 3,971,054 -- -- --
Stock Funds -- -- -- 47,382,805
Fixed Income Investment Contracts -- -- 23,960,488 --
Synthetic Investment Contracts -- -- 45,936,192 --
Cash and Short Term Investments 359,885 61,468 2,788,271 --
Loans Receivable From Participants -- -- -- --
------------- ------------- ------------- --------------
23,320,064 3,304,818 72,684,951 47,382,805
------------- ------------- ------------- --------------
RECEIVABLES (PAYABLES):
Accrued Interest and Dividends 24,852 4,245 10,289 --
Pending Transactions (3,098) (529) (4,504) (1,434)
------------- ------------- ------------- --------------
21,754 3,716 5,785 (1,434)
------------- ------------- ------------- --------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $ 23,341,818 $ 3,308,534 $ 72,690,736 $ 47,381,371
============= ============= ============= ==============
<CAPTION>
Participant Directed
---------------------------------------------
Small Int'l Employee
Company Equities Loan
Index Fund Index Fund Fund Total
------------ ------------ -------- ---------
<S> <C> <C> <C> <C>
Common Stock, Champion International Corporation $ -- $ -- $ -- $ 22,232,475
Master Trust -- -- -- 3,971,054
Stock Funds 8,113,036 4,366,510 -- 59,862,351
Fixed Income Investment Contracts -- -- -- 23,960,488
Synthetic Investment Contracts -- -- -- 45,936,192
Cash and Short Term Investments 24 2 -- 3,209,650
Loans Receivable From Participants -- -- 10,415,975 10,415,975
------------ ------------ ----------- ---------------
8,113,060 4,366,512 10,415,975 169,588,185
------------ ------------ ----------- ---------------
RECEIVABLES (PAYABLES):
Accrued Interest and Dividends -- -- -- 39,386
Pending Transactions (589) (205) -- (10,359)
------------ ------------ ----------- ---------------
(589) (205) -- 29,027
------------ ------------ ----------- ---------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $ 8,112,471 $ 4,366,307 $ 10,415,975 $ 169,617,212
============ ============ =========== ===============
</TABLE>
The accompanying notes to financial statements
are an integral part of these statements.
3
<PAGE>
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Statement of Net Assets Available for Benefits
As of December 31, 1997
<TABLE>
<CAPTION>
Company Directed Participant Directed
------------------ ---------------------------------------------
S&P 500
Company Company Stable Index
Stock Fund Stock Fund Value Fund Fund
------------- ------------- ------------ ---------
INVESTMENTS (Notes 1, 2, 3 & 4):
<S> <C> <C> <C> <C>
Common Stock, Champion International Corporation $ 21,779,775 $ 1,115,183 $ -- $ --
Master Trust 4,677,576 -- -- --
Stock Funds -- -- -- 35,205,572
Fixed Income Investment Contracts -- -- 24,862,887 --
Synthetic Investment Contract -- -- 51,295,087 --
Cash and Short Term Investments 828,182 -- 2,327,644 --
Loans Receivable From Participants -- -- -- --
------------- ------------- ------------- -------------
27,285,533 1,115,183 78,485,618 35,205,572
------------- ------------- ------------- -------------
RECEIVABLES (PAYABLES):
Accrued Interest and Dividends 24,911 -- -- --
Pending Transactions (309,516) -- -- --
------------- ------------- ------------- -------------
(284,605) -- -- --
------------- ------------- ------------- -------------
DUE TO CHAMPION INTERNATIONAL CORPORATION SAVINGS (272,356) -- (1,388,774) (363,078)
PLAN #077 (Note 7) ------------- ------------- ------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS $ 26,728,572 $ 1,115,183 $ 77,096,844 $ 34,842,494
============= ============= ============= =============
<CAPTION>
Participant Directed
---------------------------------------------
Small Int'l Employee
Company Equities Loan
Index Fund Index Fund Fund Total
------------ ------------ -------- ---------
<S> <C> <C> <C> <C>
INVESTMENTS (Notes 1, 2, 3 & 4):
Common Stock, Champion International Corporation $ -- $ -- $ -- $ 22,894,958
Master Trust -- -- -- 4,677,576
Stock Funds 7,681,685 3,449,836 -- 46,337,093
Fixed Income Investment Contracts -- -- -- 24,862,887
Synthetic Investment Contract -- -- -- 51,295,087
Cash and Short Term Investments 24 2 -- 3,155,852
Loans Receivable From Participants -- -- 12,466,841 12,466,841
------------- ------------- ------------- -------------
7,681,709 3,449,838 12,466,841 165,690,294
------------- ------------- ------------- -------------
RECEIVABLES (PAYABLES):
Accrued Interest and Dividends -- -- -- 24,911
Pending Transactions -- -- -- (309,516)
------------- ------------- ------------- -------------
-- -- -- (284,605)
------------- ------------- ------------- -------------
DUE TO CHAMPION INTERNATIONAL CORPORATION SAVINGS (4,554) (3,591) -- (2,032,353)
PLAN #077 (Note 7) ------------- ------------- ------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS $ 7,677,155 $ 3,446,247 $ 12,466,841 $ 163,373,336
============= ============= ============= =============
</TABLE>
The accompanying notes to financial statements
are an integral part of these statements.
4
<PAGE>
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Company Directed Participant Directed
------------------ ---------------------------------------------
S&P 500
Company Company Stable Index
Stock Fund Stock Fund Value Fund Fund
------------- ------------- ------------ -----------
CONTRIBUTIONS (Note 1):
<S> <C> <C> <C> <C>
Company $ 5,457,559 $ -- $ -- $ --
Employees -- 185,374 13,082,056 9,186,863
-------------- ----------- ------------- ------------
5,457,559 185,374 13,082,056 9,186,863
-------------- ----------- ------------- ------------
INVESTMENT INCOME (LOSS)
(Notes 1, 2, 3 & 4):
Dividends and Interest 120,407 13,206 5,529,408 --
Net Realized and Unrealized Gain on Investments (3,492,988) 321,646 -- 10,285,735
Master Trust (444,301) -- -- --
-------------- ----------- ------------- ------------
(3,816,882) 334,852 5,529,408 10,285,735
-------------- ----------- ------------- ------------
WITHDRAWALS (Note 8):
Company Contributions (1,806,226) -- -- --
Employee Contributions -- (32,059) (7,257,660) (2,071,484)
Master Trust (260,992) -- -- --
-------------- ----------- ------------- ------------
(2,067,218) (32,059) (7,257,660) (2,071,484)
-------------- ----------- ------------- ------------
CONTRIBUTIONS AND INVESTMENT INCOME OVER (UNDER) (426,541) 488,167 11,353,804 17,401,114
WITHDRAWALS -------------- ----------- ------------- ------------
TRANSFER (TO) FROM OTHER PLANS :
Newsprint System Divestiture (Note 8) (2,651,634) (75,318) (15,249,107) (4,727,761)
Fort James Company (Note 9) -- -- 594,271 --
Champion International Corporation Savings Plan #077, (95,611) (9,906) 96,053 (381,974)
less prior year accrual (Note 7) -------------- ----------- ------------- ------------
(2,747,245) (85,224) (14,558,783) (5,109,735)
-------------- ----------- ------------- ------------
TRANSFER BETWEEN FUNDS (212,968) 1,790,408 (1,201,129) 247,498
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of Year 26,728,572 1,115,183 77,096,844 34,842,494
-------------- ----------- ------------- ------------
NET ASSETS AVAILABLE FOR BENEFITS
End of Year $ 23,341,818 $3,308,534 $ 72,690,736 $ 47,381,371
============== =========== ============= ============
<CAPTION>
Participant Directed
---------------------------------------------
Small Int'l Employee
Company Equities Loan
Index Fund Index Fund Fund Total
------------ ------------ -------- ---------
<S> <C> <C> <C> <C>
CONTRIBUTIONS (Note 1):
Company $ -- $ -- $ -- $ 5,457,559
Employees 1,999,171 980,663 -- 25,434,127
------------- ------------- ------------ -------------
1,999,171 980,663 -- 30,891,686
------------- ------------- ------------ -------------
INVESTMENT INCOME (LOSS)
(Notes 1, 2, 3 & 4):
Dividends and Interest -- -- 1,115,201 6,778,222
Net Realized and Unrealized Gain on Investments 543,215 690,650 -- 8,348,258
Master Trust -- -- -- (444,301)
------------- ------------- ------------ -------------
543,215 690,650 1,115,201 14,682,179
------------- ------------- ------------ -------------
WITHDRAWALS (Note 8):
Company Contributions -- -- -- (1,806,226)
Employee Contributions (400,451) (284,943) (488,163) (10,534,760)
Master Trust -- -- -- (260,992)
------------- ------------- ------------ -------------
(400,451) (284,943) (488,163) (12,601,978)
------------- ------------- ------------ -------------
CONTRIBUTIONS AND INVESTMENT INCOME OVER (UNDER) 2,141,935 1,386,370 627,038 32,971,887
WITHDRAWALS ------------- ------------- ------------ -------------
TRANSFER (TO) FROM OTHER PLANS :
Newsprint System Divestiture (Note 8) (744,733) (370,892) (3,118,990) (26,938,435)
Fort James Company (Note 9) -- -- 42,030 636,301
Champion International Corporation Savings Plan #077, (24,421) (10,018) -- (425,877)
less prior year accrual (Note 7) ------------- ------------- ------------ -------------
(769,154) (380,910) (3,076,960) (26,728,011)
------------- ------------- ------------ -------------
TRANSFER BETWEEN FUNDS (937,465) (85,400) 399,056 --
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of Year 7,677,155 3,446,247 12,466,841 163,373,336
------------- ------------- ------------ -------------
NET ASSETS AVAILABLE FOR BENEFITS
End of Year $ 8,112,471 $ 4,366,307 $ 10,415,975 $ 169,617,212
============= ============= ============ =============
</TABLE>
The accompanying notes to financial statements
5
<PAGE>
are an integral part of these statements.
6
<PAGE>
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Notes to Financial Statements
December 31, 1998 and 1997
(1) Plan Description-
----------------
The following description of the Champion International Corporation Savings
Plan for Hourly Employees #158 (the Plan) provides only general information.
Reference should be made to the Plan agreement for a more complete
description of the Plan's provisions.
The Plan, which became effective on January 1, 1989, is a contributory
savings plan available to hourly employees of Champion International
Corporation (the Company). The Plan includes a 401(k) savings option
allowing participants to contribute before-tax compensation as well as after-
tax compensation.
Participants may contribute up to a maximum of 16% (22% effective January 1,
1999) of their compensation, subject to certain limitations. Qualified
participant contributions are invested in either the Company Common Stock
Fund, Stable Value Fund, the S&P 500 Index Fund, the Small Company Index
Fund, or the International Equities Index Fund, at the participants'
discretion. Earnings for the funds are based upon the performance of the
funds' underlying assets.
The Company matches the participants' contributions to the Plan up to a
certain amount per year as specified in the applicable collective bargaining
arrangement. Company contributions are invested in the Company's common
stock. Participants vest in the Company contribution based upon years of
service with the Company.
Participants are permitted to borrow against their account balances and their
vested portions of the Company stock fund contributions. The terms and
conditions of these loans are established to be in compliance with applicable
laws and regulations. The interest rate charged to participants in 1998 and
1997 was prime at origination plus 1%. Principal and interest are paid
ratably through monthly payroll deductions.
7
<PAGE>
Effective June 30, 1995, Champion International Corporation Stock Ownership
Plan #078 (Plan #078) was merged into the Champion International Corporation
Savings Plan #077 (Plan #077) and the Champion International Corporation
Savings Plan for Hourly Employees #158, as applicable. The net assets of
Plan #078 were transferred to a Master Trust for which State Street Bank and
Trust Company now acts as trustee. Assets of the Master Trust consist of
shares of the Company's common stock, the valuation of which is based on
market prices. Benefit payments are credited and charged directly to each
plan. Investment income of the Master Trust, which includes dividend income
and realized and unrealized gains and losses, is allocated to each plan by
the trustee based upon the Master Trust units of participation held by each
Plan. As of December 31, 1998 and 1997, the Plan's investment approximated
65% of the assets held in the Master Trust.
The Plan is administered by the Company through the Pension and Employee
Benefits Committee (PEBC) and is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA). Certain investment
management expenses are paid by the Plan while other administrative expenses
are paid by the Company and are not included in the accompanying financial
statements.
The Plan's trustee is State Street Bank and Trust Company. ADP
Administrative Solutions Group (formerly known as William Mercer, Inc.)
performs certain administrative and record keeping functions of the Plan.
Participants have the ability to initiate transactions directly impacting
their account balances over the telephone. Such transactions are posted to
participants' accounts on a daily basis at the applicable investment fund's
net asset value as reported by the trustee.
J.P. Morgan/American Century Retirement Plan Services were appointed Trustee
and participant account record keeper effective July 1, 1999.
(2) Significant Accounting Policies-
-------------------------------
(a) Investment Valuation and Income Recognition--Cash and cash equivalents
-------------------------------------------
are stated at cost which approximates market value. The Company's common
stock is valued at the closing market price at yearend. Investments in
the fixed income investment contracts and synthetic investment contracts
are valued at contract ("book") value, defined as the sum of
contributions less withdrawals plus credited interest. Commingled funds
are stated at market value as determined by the trustee. Loans receivable
from participants are valued at cost which approximates fair value.
Realized and unrealized valuation gains and losses are reflected
currently in the statements of changes in net assets available for
benefits.
8
<PAGE>
(b) Basis of Accounting--The Plan uses the accrual basis of accounting.
-------------------
(c) Payment of Benefits--Benefits are recorded when paid.
-------------------
(d) Use of Estimates--The preparation of financial statements in
----------------
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the financial
statements. Actual results could differ from those estimates.
(e) Reclassifications--Certain amounts in the 1997 financial statements
-----------------
have been reclassified to conform with the 1998 presentation.
(3) Investments-
-----------
The following summarizes the nature of the underlying assets which comprise
the investment portfolio of the Plan's Company Stock Fund, Stable Value
Fund, S&P 500 Index Fund, Small Company Index Fund, and International
Equities Index Fund:
<TABLE>
<CAPTION>
Investment Fund Investment Underlying Assets
- ------------------- ------------------------- --------------------------
<S> <C> <C>
Company Stock Common Stock Champion International
Fund Corporation Common Stock
Stable Value Fund Fixed Income Investment Pool of investment contracts
Contracts issued by a diversified list of
insurance companies
Synthetic Investment Portfolio of investment grade fixed
Contract - Separate income securities, including but
Account not limited to, U.S. Treasuries, U.S.
Government Agency notes and
mortgages, corporate securities,
asset-backed securities, Canadian
Yankees and cash equivalents
S&P 500 Index Commingled Fund Common stocks of large
Fund companies in a wide variety of
industries (managed by
Metropolitan Life Insurance
Company)
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Investment Fund Investment Underlying Assets
- ------------------- ------------------------- --------------------------
<S> <C> <C>
Small Company Commingled Fund Common stocks of small U.S.
Index Fund companies in a wide variety of
industries (managed by Barclays
Global Investors, N.A.)
International Commingled Fund Common stocks of primarily
Equities Index established, medium to large
Fund companies based in economically
developed countries outside of the
U.S. (managed by Barclays Global
Investors, N.A.)
</TABLE>
A summary of the Plan's investments (excluding cash and short term investments
and participant loans) follows:
<TABLE>
<CAPTION>
Carrying Value at December 31,
----------------------------------
1998 1997
----------------- ----------------
<S> <C> <C>
Common Stock, Champion International
Corporation $22,232,475 $22,894,958
================= ================
Master Trust $ 3,971,054 $ 4,677,576
================= ================
Stable Value Funds:
Fixed Income Investment Contracts-
Metropolitan Life Insurance Company
8.30%, 55% of the balance maturing $ 3,137,797
on 12/15/98, 65% of the remaining $ 6,438,488
balance maturing on 12/15/99 and
the remainder of the balance
maturing on 12/15/00
</TABLE>
10
<PAGE>
<TABLE>
<S> <C> <C>
John Hancock Mutual Life Insurance
Company
8.30%, 43% maturing on 12/15/98; 3,974,467 6,438,366
50% maturing on 7/1/99 and the
remainder of the contract maturing
on 6/30/00
Providian Capital Management
6.83%, maturing on 6/30/01 6,977,383 4,100,495
Principal Mutual Life Insurance Company
6.83% maturing on 12/31/01 2,429,855 2,274,506
New York Life Insurance Company
6.84%, maturing 9/30/01 2,430,198 2,274,614
6%, maturing 7/1/98 - 3,336,418
Transamerica Occidental Life Insurance 5,010,788 -
Company, interest rate equal to the ------------- -------------
CMT Rate reset quarterly (4.94% at
December 31, 1998), maturing
6/15/03
$23,960,488 $24,862,887
------------- -------------
Synthetic Investment Contract - Fair 50,332,360 53,813,121
Value
Less: Excess of Separate Account over (4,396,168) (2,518,034)
Contract Value ------------- -------------
Synthetic Investment Contract - 45,936,192 51,295,087
Contract Value ------------- -------------
$69,896,680 $76,157,974
============= =============
Stock Funds:
Metropolitan Life Insurance Company
S&P 500 Commingled Fund $47,382,805 $35,205,572
Barclays Global Investors, N.A.
Extended Equity Market Fund K 8,113,036 7,681,685
EAFE Equity Index Fund K 4,366,510 3,449,836
------------- -------------
$59,862,351 $46,337,093
============= =============
</TABLE>
11
<PAGE>
The Plan's investments include approximately $24.0 million and $24.9
million of fixed income investment contracts with various insurance
companies, which have been reported at contract value as of December 31,
1998 and 1997, respectively. The insurance companies credit the Plan's
account with contributions and earnings on the underlying investments and
charge the Plan for withdrawals and administrative expenses. In some cases,
limitations on the liquidity guarantees can be imposed in the event of plan
amendments, mergers, sales, plan termination, layoff or other employer-
initiated events. The fair value of these investment contracts was
estimated to be approximately $24.7 million and $25.5 million at December
31, 1998 and 1997, respectively. The fair value of the Plan's investment
contracts was estimated by the Company using a discounted cash flow
analysis with an assumed, average discount rate of 5.14% and 6.25% at
December 31, 1998 and 1997, respectively. The average yield for these
contracts during 1998 was approximately 7.30% while the crediting interest
rates ranged from 4.94% to 8.30% at December 31, 1998 and from 6.66% to
8.30% at December 31, 1997.
Effective January 3, 1994, the Company entered into a group annuity
contract with Metropolitan Life Insurance Company (MetLife) on behalf of
the Plan. Effective October 1, 1998, the Company terminated its group
annuity contract with MetLife and entered into similar "synthetic"
investment contracts with CDC Capital Inc. (CDC) and State Street Bank and
Trust Company (SSB). Among other things, both the previous contract with
MetLife and the current contracts with CDC and SSB required that a Separate
Account, consisting of a portfolio of diversified investment grade fixed
income securities, be maintained on behalf of the Plan and the Champion
International Savings Plan #077. The fair market value of the portfolio of
investments, at any point in time, represents the market value of the
Separate Account. At December 31, 1998 and 1997, the Plan's interest in the
Separate Account had a fair market value of approximately $50.3 million and
$53.8 million, respectively. The book value of the synthetic investment
contract(s), at any point in time, represents the amount deposited into the
Separate Account on behalf of the Plan, plus interest credited, at rates
established by the contract holder minus any withdrawals and transfers out
of the fund. Under the MetLife contract, interest rates were reset every
six months. Interest was credited at a rate of 7.14% and 7.16% during the
periods January 1, 1998 through June 30, 1998 and July 1, 1998 through
September 30, 1998, respectively. Under the CDC and SSB contracts, interest
rates are reset quarterly and interest was credited at a rate of 7.205% for
the period October 1, 1998 through December 31, 1998. The book values of
the contract(s) are guaranteed by the contract holder (subject to certain
restrictions on amounts withdrawn as a result of employer-initiated events)
and totaled $45,936,192 and $51,295,087 at December 31, 1998 and 1997,
respectively. The fair market value of the Plan's interest in the Separate
Account exceeded the contracts' book value by approximately $4.4 million
and $2.5 million at December 31, 1998
12
<PAGE>
and 1997, respectively, and the difference is reflected in the preceding
investment summary as "Excess of Separate Account Over Contract Value".
(4) Priorities Upon Termination of the Plan-
---------------------------------------
Upon termination of the Plan, participants become fully vested in their
individual accounts.
(5) Forfeited Accounts-
------------------
At December 31, 1998 and 1997, forfeited nonvested accounts totaled
approximately $6,000 and $7,000, respectively. These accounts will be used
to reduce future Company contributions. During 1998, Company contributions
were reduced by approximately $28,000 as a result of forfeited nonvested
accounts.
(6) Tax Exempt Status-
-----------------
The Plan, as amended and restated through July 1, 1994, has received a
favorable determination letter from the Internal Revenue Service dated
January 11, 1999. A tax determination request has not been filed for the
most recent plan amendments. The plan administrator believes that the Plan
was designed and is being operated in compliance with the applicable
requirements of the Internal Revenue Code (IRC). Therefore, the plan
administrator believes that the Plan is a qualified plan under the IRC and
the related trust is tax exempt as of December 31, 1998 and for the year
then ended.
(7) Transfers Between Champion International Corporation Plans-
----------------------------------------------------------
The Company transfers participant account balances and the related assets
between the Plan and Plan #077 for participants who have changed employment
(i.e., hourly or salaried) status. In conjunction therewith, certain
participant account transfers, totaling approximately $2 million were in
process at December 31, 1997 and are reflected in the accompanying
Statement of Net Assets Available for Benefits as "Due to Champion
International Corporation Savings Plan #077".
(8) Restructuring and Divestiture Program-
-------------------------------------
On October 7, 1997, the Company approved a program to maximize total
shareholder return by focusing on strategic businesses, increasing
profitability and improving financial discipline. As part of this program,
the Company announced its intention to divest several non-strategic product
segments. These product segments include the newsprint, recycling, coated
and uncoated groundwood specialty papers, premium papers, specialty
uncoated papers, and liquid
13
<PAGE>
packaging and bleached board businesses. Also to be divested are 325,000
acres of timberlands. Additionally, the Company has announced plans to
reduce its worldwide workforce in the businesses remaining after the
divestitures by 11%, or approximately 2,000 positions, by the end of 1999.
On June 1, 1998 the Company announced that the divestiture of its newsprint
mills in Sheldon and Lufkin, Texas along with three recycling centers (i.e.
collectively the Newsprint System) had been completed. In accordance with
an asset purchase agreement between Champion International Corporation and
Donohue, Inc. dated as of March 21, 1998 (the Purchase Agreement), Selected
Employees, as defined in the Purchase Agreement, were fully vested in their
account balances as of the closing date. Assets totaling $26.9 million were
transferred to the successor plan for the Newsprint System during 1998.
On March 29, 1999, the Company announced an agreement to sell its mill in
North Carolina, an extruding and converting facility in Waynesville, North
Carolina and its DairyPak liquid packaging business. Additionally, on May
13, 1999, the Company announced an agreement to sell its groundwood mill in
Deferiet, New York. In accordance with the applicable purchase agreements,
the Company anticipates that certain employees at these locations will also
be fully vested in their account balances.
Participant withdrawals may result from the aforementioned restructuring
program and divestiture agreements.
(9) Acquisition From Fort James Corporation-
---------------------------------------
In connection with an asset purchase agreement by and among Fort James
Operating Company (a division of Fort James Corporation, formerly James
River Corporation of Virginia), Diamond Occidental Forest, Inc., and
Champion International Corporation dated October 24, 1997, assets totaling
approximately $0.6 million were transferred from the Fort James Corporation
Stock Plus Investment Plan to the Plan during 1998.
14
<PAGE>
Schedule I
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
Company Stock Fund
December 31, 1998
Identity of Issuer/ Shares/ Current
Asset Description Par Value Cost Value
- --------------------------------------------- ----------- -------- ---------
* State Street Bank and Trust Company,
Government Short Term Investment Fund 421,353 421,353 421,353
========== ==========
* Champion International Corporation, Common
Stock 548,950 20,714,288 22,232,475
========== ==========
*Represents a transaction with a Party-in-Interest
15
<PAGE>
Schedule I
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
Stable Value Fund
December 31, 1998
<TABLE>
<CAPTION>
Identity of Issuer/ Shares/ Cost Current
Asset Description Par Value ---------- Value
- ---------------------------------------------------------- ------------- -----------
<S> <C> <C> <C>
Fixed Income Investment Contracts:
Metropolitan Life Insurance Company --
GAC 13944, 8.30%, 65% of the balance maturing on
12/15/99 and the remainder of the balance maturing
on 12/15/00 $3,137,797 $3,137.797
John Hancock Mutual Life Insurance Company --
GAC 7561, 8.30%, 50% of the balance maturing on
7/1/99 and the remainder of the contract maturing on
6/30/00 3,974,467 3,974,467
Providian Capital Management --
Contract BDA00731FR, 6.83%, maturing 6/30/01 6,977,383 6,977,383
Principal Mutual Life Insurance Company --
GAC 4-28880-2, 6.83%, maturing 12/31/01 2,429,855 2,429,855
New York Life Insurance Company --
GAC 6346-003, 6.84%, maturing 9/30/01 2,430,198 2,430,198
Transamerica Occidental Life Insurance Company
Contract 51530, interest rate equal to the 10 year
CMT rate, reset quarterly, 4.94% at 12/31/98
maturing on June 15, 2003 5,010,788 5,010,788
----------- -----------
Synthetic Investment Contracts $23,960,488 $23,960,988
=========== ===========
Fair Value of Separate Account (A) $50,332,360
Less: Excess of Fair Value over Contract Value (4,396,168)
-----------
Contract Value 45,936,192
===========
Cash and Short Term Investments:
* State Street Bank and Trust Company --
Government Short Term Investment Fund 2,788,271 $ 2,788,271 $ 2,788,271
=========== ===========
</TABLE>
(A) Cost of investments information is, on a plan by plan basis, not furnished
to the Plan by the asset managers.
* Represents a transaction with a Party-in-Interest
16
<PAGE>
Schedule I
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
S&P 500 Index Fund
December 31, 1998
<TABLE>
<CAPTION>
Identity of Issuer/ Shares/ Cost Current
Asset Description Par Value ---------- Value
- ----------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
Metropolitan Life Insurance Company, 167,969 (A) 47,382,805
S&P 500 Commingled Fund
</TABLE>
(A) Cost of investments information is not furnished, on a plan by plan basis,
by Metropolitan Life Insurance Company.
17
<PAGE>
Schedule I
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
Small Company Index Fund
December 31, 1998
<TABLE>
<CAPTION>
Identity of Issuer/ Shares/ Cost Current
Asset Description Par Value ---------- Value
- ----------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
Barclays Global Investors, N.A.,
Extended Equity Market Fund K 397,095 6,494,820 8,113,036
========== ===========
Barclays Global Investors, N.A.,
Money Market Fund, Employee Benefit Trust 24 24 24
========== ===========
</TABLE>
18
<PAGE>
Schedule I
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
International Equities Index Fund
December 31, 1998
<TABLE>
<CAPTION>
Identity of Issuer/ Shares/ Cost Current
Asset Description Par Value ---------- Value
- ----------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
Barclays Global Investors, N.A.,
EAFE Equity Index Fund K 286,413 3,733,034 4,366,510
========== ===========
Barclays Global Investors, N.A.,
Money Market Fund, Employee Benefit Trust 2 2 2
========== ===========
</TABLE>
19
<PAGE>
Schedule I
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Item 27 (a) - Schedule of Assets Held For Investment Purposes
Employee Loan Fund
December 31, 1998
<TABLE>
<CAPTION>
Identity of Issuer/ Shares/ Current
Asset Description Par Value Cost Value
- ----------------------------------------------------------- ----------- ---------- -----------
<S> <C> <C> <C>
* Participant Loans, interest at Prime + 1% at origination
(interest rates on loans ranged from 7.25% to 10.0% at
December 31, 1998), secured by applicable
participants' vested accrued benefits - 10,415,975 10,415,975
========== ===========
</TABLE>
* Represents a transaction with a Party-in-Interest
20
<PAGE>
Schedule II
Page 1 of 2
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Item 27 (d) - Schedule of Reportable Transactions
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Number Expense Incurred
Of Purchase Selling With Cost of Net Gain
Description of Assets Transactions Price (A) Price (A) Transactions Asset or (Loss)
- ------------------------------------------ ------------ ---------- ------------- ---------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Caisse des Depots
Investment Contract 1022 3 27,293,825 - - 27,293,825 -
Investment Contract 1022 1 - 7,156,511 - 7,156,511 -
Investment Contract 1022-02 1 2,709,257 - - 2,709,257 -
Investment Contract 1022-02 1 - 5,530 - 5,530 -
Metropolitan Life Insurance Company
Investment Contract 13944 12 531,166 - - 531,166 -
Investment Contract 13944 1 - 3,820,870 - 3,820,870 -
Investment Contract 13625/001 13 5,342,622 - - 5,342,622 -
Investment Contract 13625/001 2 - 56,342,632 - 56,342,632 -
MetLife S&P 500 Commingled Fund 404 18,487,629 - - 18,487,629 -
MetLife S&P 500 Commingled Fund 450 - 16,611,953 - 12,537,067 4,074,886
State Street Bank
Investment Contract 98205 3 27,297,664 - - 27,297,664 -
Investment Contract 98205 1 - 7,156,511 - 7,156,511 -
Investment Contract 98277 1 2,709,257 - - 2,709,257 -
Investment Contract 98277 1 - 5,530 - 5,530 -
Government Short Term Investment Fund 250 43,741,472 - - 43,741,472 -
Government Short Term Investment Fund 237 - 43,687,675 - 43,687,675 -
</TABLE>
21
<PAGE>
Schedule II
Page 2 of 2
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Item 27 (d) - Schedule of Reportable Transactions
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Number Expense Incurred
Of Purchase Selling With Cost of Net Gain
Description of Assets Transactions Price (A) Price (A) Transactions Asset or (Loss)
- ------------------------------------------ ------------ ---------- ------------- ---------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Champion International Corporation
Common Stock 15 6,109,637 - - 6,109,637 -
Champion International Corporaton
Common Stock 21 - 3,600,774 - 3,982,362 (381,588)
</TABLE>
(A) The current value of all assets acquired or disposed of, at the time of
acquisition or disposition, is equal to the purchase price or selling
price, respectively.
22
<PAGE>
Schedule III
Champion International Corporation
Savings Plan for Hourly Employees #158
FEIN: 13-1427390
Certification of Receipt of Annual Statement of Assets
And Liabilities of Commingled Trust Funds
Supplement to Item 27(a) - Schedule of Assets
Held for Investment Purposes
In accordance with 29 CFR 2520.103-9, the Pension and Employee Benefits
Committee (PEBC) of Champion International Corporation hereby certifies that
subject savings plan (the Plan) is in receipt of the most recent annual
statement of assets and liabilities of the collective trust funds in which the
Plan has an investment.
In addition, a notice has been received by the PEBC from State Street Bank and
Trust Company informing the Plan that the proper procedure will be followed in
filing a copy of the most recent annual statement of assets and liabilities of
State Street Bank and Trust Company Government Short Term Investment Fund, in
which the Plan has an investment, with the Department of Labor. The Employer
Identification Number of the fund is 04-0025081 and the filing will be made for
the year ended December 31, 1998.
At December 31, 1998, the Plan had an investment in MetLife Separate Account
197, a pooled Separate Account of the Metropolitan Life Insurance Company
(MetLife). The asset listing for Separate Account 197 (S&P 500 Index Fund) as
of December 31, 1998 is included herein, as no separate filing of the most
recent statement of assets and liabilities of the Separate Account had been made
by MetLife with the Department of Labor.
At December 31, 1998 the Plan had an investment in two synthetic investment
contracts, the underlying assets of which consist of pooled Separate Accounts
managed by Dwight Asset Management and State Street Research and Management
Company. The asset listings for these pooled investment accounts, as of
December 31, 1998, are included herein, as no separate filing of the most recent
statements of assets and liabilities had been made by the asset managers.
At December 31, 1998, the Plan had investments in the Extended Equity Market
Fund K, the EAFE Equity Index Fund K, and the Money Market Fund, common,
collective funds of Barclays Global Investors, N.A. (Barclays). A notice has
been received by the Plan
23
<PAGE>
that the proper procedures have been followed in filing a copy of the most
recent statement of assets and liabilities of Barclays common collective funds,
in which the Plan had investments, with the Department of Labor. The employer
identification numbers of the common collective funds are 94-3199860 (Extended
Equity Market Fund K), 94-3199859 (EAFE Equity Index Fund K), and 94-6450621
(Money Market Fund), and the filings were made as on or before the date upon
which the annual report is required to be filed with the Department of Labor.
The Plan's investment in all such funds is included in the accompanying Schedule
of Assets Held for Investment Purposes.
24
<PAGE>
Schedule III
Champion International Corporation
Savings Plan for Hourly Employees #158
Fein: 13-1427390
MetLife Separate Account 197 Asset Listing
December 31, 1998
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
CASH - 1,917,795.52 1.00 1,917,795.52 -
RECEIVABLE FOR INVESTMENTS SOLD - 1,515,905.65 1.00 1,515,905.65 -
PAYABLE FOR INVESTMENTS PURCHASED - (1,830,723.04) 1.00 (1,830,723.04) -
UNITED STATES METLIFE SHORT TERM INVESTMENT 0.10 0.10 1.00 0.10 -
BERMUDA TYCO INTL LTD NEW COM 18,201.00 772,928.65 75.44 1,373,037.94 600,109.29
CANADA SEAGRAM LTD COM 10,917.00 407,914.44 38.00 414,846.00 6,931.56
CANADA LAIDLAW INC COM 9,300.00 99,554.70 10.06 93,581.25 (5,973.45)
CANADA NORTHERN TELECOM LTD 18,712.00 777,441.28 50.13 937,939.00 160,497.72
CANADA ALCAN ALUM LTD 6,185.00 202,065.23 27.06 167,381.56 (34,683.67)
CANADA BARRICK GOLD CORP 10,243.00 244,041.43 19.50 199,738.50 (44,302.93)
CANADA INCO LTD COM 4,262.00 130,557.55 10.56 45,017.38 (85,540.17)
CANADA PLACER DOME INC 7,011.00 129,735.85 11.50 80,626.50 (49,109.35)
CANADA MOORE LTD 2,300.00 48,564.90 11.00 25,300.00 (23,264.90)
NETHERLANDS UNILEVER NV N Y SHS ADR 18,112.00 808,237.00 82.94 1,502,164.00 693,927.00
NETHERLANDS ROYAL DUTCH PETE CO N Y 61,120.00 2,322,812.70 47.88 2,926,120.00 603,307.30
NETHERLANDS ANTILLES SCHLUMBERGER LTD COM 15,644.00 677,984.10 46.13 721,579.50 43,595.40
UNITED STATES AETNA INC COM 4,241.00 317,849.80 78.63 333,448.63 15,598.83
UNITED STATES ALLSTATE CORP COM 23,316.00 604,761.13 38.63 900,580.50 295,819.37
UNITED STATES AMERICAN EXPRESS CO COM 12,805.00 823,772.54 102.25 1,309,311.25 485,538.71
UNITED STATES AMERICAN GEN CORP COM 7,499.00 371,470.42 78.00 584,922.00 213,451.58
UNITED STATES AMERICAN INTL GROUP INC COM 30,164.00 1,566,445.76 96.63 2,914,596.50 1,348,150.74
UNITED STATES AON CORP COM 4,750.00 279,266.70 55.38 263,031.25 (16,235.45)
UNITED STATES ASSOCIATES FIRST CAP CORP CL A 20,516.00 486,259.20 42.38 869,365.50 383,106.30
UNITED STATES BANK NEW YORK INC COM 21,500.00 429,301.48 40.25 865,375.00 436,073.52
UNITED STATES BANK ONE CORP COM 33,364.00 1,208,816.82 51.06 1,703,649.25 494,832.43
UNITED STATES BANKAMERICA CORP NEW COM 49,287.00 1,829,503.29 60.13 2,963,380.88 1,133,877.59
UNITED STATES BANKBOSTON CORP COM 8,186.00 261,978.31 38.94 318,742.38 56,764.07
UNITED STATES BANKERS TRUST CORP COM 2,653.00 224,021.83 85.44 226,665.69 2,643.86
UNITED STATES BB&T CORP COM 8,300.00 265,088.50 40.31 334,593.75 69,505.25
UNITED STATES BEAR STEARNS COS INC COM 3,100.00 165,788.30 37.38 115,862.50 (49,925.80)
UNITED STATES CAPITAL ONE FINL CORP 2,100.00 263,329.50 115.00 241,500.00 (21,829.50)
UNITED STATES CHASE MANHATTAN CORP NEW COM 24,344.00 977,421.75 68.06 1,656,913.50 679,491.75
UNITED STATES CHUBB CORP COM 4,940.00 269,651.00 64.88 320,482.50 50,831.50
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES CIGNA CORP COM 6,229.00 426,921.39 77.31 481,579.56 54,658.17
UNITED STATES CINCINNATI FINL CORP COM 4,900.00 219,511.83 36.63 179,462.50 (40,049.33)
UNITED STATES CITIGROUP INC COM 64,674.00 2,303,066.42 49.50 3,201,363.00 898,296.58
UNITED STATES COMERICA INC COM 4,600.00 140,615.60 68.19 313,662.50 173,046.90
UNITED STATES CONSECO INC COM 8,840.00 337,613.77 30.56 270,172.50 (67,441.27)
UNITED STATES COUNTRYWIDE CR INDS INC COM 3,400.00 112,143.10 50.19 170,637.50 58,494.40
UNITED STATES EQUIFAX INC COM 4,200.00 136,904.27 34.19 143,587.50 6,683.23
UNITED STATES FEDERAL NATL MTG ASSN COM 29,792.00 980,426.55 74.00 2,204,608.00 1,224,181.45
UNITED STATES FIFTH THIRD BANCORP 7,525.00 356,870.47 71.31 536,626.56 179,756.09
UNITED STATES FIRST UN CORP COM 28,091.00 1,046,236.49 60.81 1,708,283.94 662,047.45
UNITED STATES FLEET FINL GROUP INC NEW COM 16,294.00 583,076.49 44.69 728,138.13 145,061.64
UNITED STATES FRANKLIN RES INC COM 7,200.00 377,594.00 32.00 230,400.00 (147,194.00)
UNITED STATES FREDDIE MAC CORP COM 19,528.00 477,976.90 64.44 1,258,335.50 780,358.60
UNITED STATES GENERAL RE CORP COM 2,513.00 440,493.63 200.25 503,228.25 62,734.62
UNITED STATES GOLDEN WEST FINL CORP DEL COM 1,800.00 120,229.80 91.69 165,037.50 44,807.70
UNITED STATES HARTFORD FINL SVCS GROUP INC 6,624.00 166,152.30 54.88 363,492.00 197,339.70
UNITED STATES HOUSEHOLD INTL INC COM 13,542.00 285,064.38 39.63 536,601.75 251,537.37
UNITED STATES HUNTINGTON BANCSHARES INC 6,100.00 190,452.79 30.06 183,381.25 (7,071.54)
UNITED STATES JEFFERSON PILOT CORP COM 2,950.00 110,118.25 75.00 221,250.00 111,131.75
UNITED STATES KEYCORP NEW COM 12,656.00 336,309.60 32.00 404,992.00 68,682.40
UNITED STATES LEHMAN BROS HLDGS INC COM 3,300.00 186,089.60 44.06 145,406.25 (40,683.35)
UNITED STATES LINCOLN NATL CORP IND COM 3,200.00 164,045.30 81.81 261,800.00 97,754.70
UNITED STATES MARSH & MCLENNAN COS INC COM 7,221.00 376,687.77 58.44 421,977.19 45,289.42
UNITED STATES MBIA INC COM 2,800.00 156,719.50 65.56 183,575.00 26,855.50
UNITED STATES MBNA CORP COM 21,044.00 217,724.55 24.94 524,784.75 307,060.20
UNITED STATES MELLON BK CORP COM 7,452.00 252,727.00 68.75 512,325.00 259,598.00
UNITED STATES MERCANTILE BANCORPORATION INC 4,300.00 227,904.30 46.13 198,337.50 (29,566.80)
UNITED STATES MERRILL LYNCH & CO INC 9,964.00 324,422.25 66.75 665,097.00 340,674.75
UNITED STATES MGIC INVT CORP WIS COM 3,100.00 112,434.27 39.81 123,418.75 10,984.48
UNITED STATES MORGAN J P & CO INC COM 5,149.00 587,538.10 105.06 540,966.81 (46,571.29)
UNITED STATES MORGAN STANLEY DEAN WTTER & CO 16,380.00 587,314.13 71.00 1,162,980.00 575,665.87
UNITED STATES NATIONAL CITY CORP COM 9,460.00 493,943.60 72.50 685,850.00 191,906.40
UNITED STATES NORTHERN TR CORP COM 3,100.00 208,924.50 87.31 270,668.75 61,744.25
UNITED STATES PAYCHEX INC COM 4,700.00 222,275.50 51.44 241,756.25 19,480.75
UNITED STATES PNC BK CORP COM 8,707.00 349,403.91 54.13 471,266.38 121,862.47
UNITED STATES PROGRESSIVE CORP OHIO COM 2,300.00 252,471.00 169.38 389,562.50 137,091.50
UNITED STATES PROVIDIAN FINL CORP COM 3,922.00 9,181.17 75.00 294,150.00 284,968.83
UNITED STATES REGIONS FINL CORP COM 6,100.00 213,209.50 40.31 245,906.25 32,696.75
UNITED STATES REPUBLIC N Y CORP COM 3,100.00 141,579.80 45.56 141,243.75 (336.05)
UNITED STATES SAFECO CORP COM 3,640.00 142,670.80 42.94 156,292.50 13,621.70
UNITED STATES SCHWAB CHARLES CORP NEW COM 11,275.00 225,190.59 56.19 633,514.06 408,323.47
UNITED STATES SLM HLDG CORP COM 4,900.00 242,344.20 48.00 235,200.00 (7,144.20)
UNITED STATES ST PAUL COS INC 6,874.00 235,051.16 34.75 238,871.50 3,820.34
UNITED STATES STATE STREET CORP 4,600.00 244,054.50 69.56 319,987.50 75,933.00
UNITED STATES SUMMIT BANCORP COM 5,100.00 240,883.00 43.69 222,806.25 (18,076.75)
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES SUNAMERICA INC COM 6,200.00 265,366.60 81.13 502,975.00 237,608.40
UNITED STATES SUNTRUST BKS INC 6,286.00 258,461.68 76.50 480,879.00 222,417.32
UNITED STATES SYNOVUS FINL CORP 7,400.00 164,195.50 24.38 180,375.00 16,179.50
UNITED STATES TORCHMARK CORP 3,900.00 99,895.63 35.31 137,718.75 37,823.12
UNITED STATES TRANSAMERICA CORP COM 1,995.00 124,868.98 115.50 230,422.50 105,553.52
UNITED STATES U S BANCORP DEL COM 20,354.00 533,331.44 35.50 722,567.00 189,235.56
UNITED STATES UNION PLANTERS CORP TENN COM 3,900.00 192,578.00 45.31 176,718.75 (15,859.25)
UNITED STATES UNUM CORP COM 3,860.00 121,419.30 58.38 225,327.50 103,908.20
UNITED STATES WACHOVIA CORP NEW COM 6,113.00 335,678.53 87.44 534,505.44 198,826.91
UNITED STATES WASHINGTON MUTUAL INC COM 17,033.00 614,176.91 38.19 650,447.69 36,270.78
UNITED STATES WELLS FARGO & CO NEW COM 45,846.00 942,392.24 39.94 1,830,974.63 888,582.39
UNITED STATES ABBOTT LABS COM 43,110.00 1,037,205.63 49.00 2,112,390.00 1,075,184.37
UNITED STATES ALLERGAN INC COM 2,000.00 69,365.10 64.75 129,500.00 60,134.90
UNITED STATES ALZA CORP COM 2,600.00 64,202.00 52.25 135,850.00 71,648.00
UNITED STATES AMERICAN HOME PRODS CORP COM 37,776.00 1,039,244.83 56.31 2,127,261.00 1,088,016.17
UNITED STATES AMGEN INC 7,276.00 288,861.85 104.56 760,796.75 471,934.90
UNITED STATES BARD C R INC 1,300.00 44,901.00 49.50 64,350.00 19,449.00
UNITED STATES BAUSCH & LOMB INC COM 1,700.00 65,602.80 60.00 102,000.00 36,397.20
UNITED STATES BAXTER INTL INC COM 8,230.00 410,983.62 64.31 529,291.88 118,308.26
UNITED STATES BECTON DICKINSON & CO COM 6,800.00 153,755.60 42.69 290,275.00 136,519.40
UNITED STATES BIOMET INC COM 3,000.00 64,781.20 40.25 120,750.00 55,968.80
UNITED STATES BOSTON SCIENTIFIC CORP COM 11,200.00 354,794.10 26.81 300,300.00 (54,494.10)
UNITED STATES BRISTOL MYERS SQUIBB CO COM 28,612.00 1,669,763.60 133.81 3,828,643.25 2,158,879.65
UNITED STATES CARDINAL HEALTH INC COM 5,800.00 370,611.57 75.88 440,075.00 69,463.43
UNITED STATES COLUMBIA/HCA HEALTHCARE CORP 18,023.00 569,851.25 24.75 446,069.25 (123,782.00)
UNITED STATES GUIDANT CORP COM 4,200.00 230,704.75 110.25 463,050.00 232,345.25
UNITED STATES HCR MANOR CARE INC COM 3,239.00 89,612.03 29.38 95,145.63 5,533.60
UNITED STATES HEALTHSOUTH CORP COM 11,900.00 301,855.25 15.44 183,706.25 (118,149.00)
UNITED STATES HUMANA INC COM 4,600.00 116,823.40 17.81 81,937.50 (34,885.90)
UNITED STATES JOHNSON & JOHNSON COM 38,210.00 1,909,756.58 83.88 3,204,863.75 1,295,107.17
UNITED STATES LILLY ELI & CO COM 31,624.00 1,116,583.43 88.88 2,810,583.00 1,693,999.57
UNITED STATES MALLINCKRODT INC NEW 1,785.00 65,569.20 30.81 55,000.31 (10,568.89)
UNITED STATES MEDTRONIC INC COM 14,092.00 546,482.57 74.25 1,046,331.00 499,848.43
UNITED STATES MERCK & CO INC COM 34,305.00 2,151,205.45 147.69 5,066,419.69 2,915,214.24
UNITED STATES MILLIPORE CORP COM 900.00 23,630.50 28.44 25,593.75 1,963.25
UNITED STATES PFIZER INC COM 36,984.00 1,587,423.75 125.44 4,639,180.50 3,051,756.75
UNITED STATES PHARMACIA & UPJOHN INC COM 14,615.00 557,404.32 56.63 827,574.38 270,170.06
UNITED STATES PROVIDENT COS INC COM 3,700.00 133,274.00 41.50 153,550.00 20,276.00
UNITED STATES SCHERING PLOUGH CORP COM 41,860.00 841,773.10 55.25 2,312,765.00 1,470,991.90
UNITED STATES ST JUDE MED INC COM 2,400.00 85,179.70 27.69 66,450.00 (18,729.70)
UNITED STATES TENET HEALTHCARE CORP COM 8,533.00 263,273.33 26.25 223,991.25 (39,282.08)
UNITED STATES UNITED HEALTHCARE CORP COM 3,687.00 178,819.50 43.06 158,771.44 (20,048.06)
UNITED STATES WARNER LAMBERT CO COM 23,290.00 839,067.30 75.19 1,751,116.88 912,049.58
UNITED STATES ALBERTO CULVER CO CL B COM 1,200.00 30,836.50 26.69 32,025.00 1,188.50
UNITED STATES ANHEUSER BUSCH COS INC COM 13,866.00 524,014.17 65.63 909,956.25 385,942.08
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES AVON PRODS INC COM 7,424.00 168,399.55 44.25 328,512.00 160,112.45
UNITED STATES BALL CORP COM 900.00 24,055.50 45.75 41,175.00 17,119.50
UNITED STATES BESTFOODS COM 8,168.00 250,319.27 53.25 434,946.00 184,626.73
UNITED STATES BROWN FORMAN CORP CL B 2,200.00 104,053.50 75.69 166,512.50 62,459.00
UNITED STATES CAMPBELL SOUP CO COM 12,886.00 425,132.03 55.00 708,730.00 283,597.97
UNITED STATES CLOROX CO COM 3,324.00 109,463.75 116.81 388,284.75 278,821.00
UNITED STATES COCA COLA CO COM 70,210.00 3,221,132.60 66.88 4,695,293.75 1,474,161.15
UNITED STATES COCA COLA ENTERPRISES INC COM 11,100.00 329,027.90 35.75 396,825.00 67,797.10
UNITED STATES COLGATE PALMOLIVE CO 8,364.00 611,093.29 92.88 776,806.50 165,713.21
UNITED STATES CONAGRA INC COM 13,960.00 374,266.35 31.50 439,740.00 65,473.65
UNITED STATES COORS ADOLPH CO CL B 1,200.00 29,702.00 56.44 67,725.00 38,023.00
UNITED STATES CROWN CORK & SEAL INC COM 3,555.00 166,293.73 30.81 109,538.44 (56,755.29)
UNITED STATES FORT JAMES CORP COM 6,136.00 228,464.00 40.00 245,440.00 16,976.00
UNITED STATES FRUIT OF THE LOOM INC CL A 1,800.00 49,536.10 13.81 24,862.50 (24,673.60)
UNITED STATES GENERAL MLS INC COM 4,568.00 243,089.51 77.75 355,162.00 112,072.49
UNITED STATES GILLETTE CO COM 31,840.00 1,151,844.80 48.31 1,538,270.00 386,425.20
UNITED STATES HASBRO INC COM 3,522.00 128,601.08 36.13 127,232.25 (1,368.83)
UNITED STATES HEINZ H J CO COM 10,389.00 359,062.88 56.63 588,277.13 229,214.25
UNITED STATES HERSHEY FOODS CORP 3,974.00 273,809.74 62.19 247,133.13 (26,676.61)
UNITED STATES INTL FLAVORS & FRAGRANCES INC 3,000.00 137,591.30 44.19 132,562.50 (5,028.80)
UNITED STATES KELLOGG CO COM 11,574.00 369,661.30 34.13 394,962.75 25,301.45
UNITED STATES KIMBERLY CLARK CORP COM 15,258.00 696,643.56 54.50 831,561.00 134,917.44
UNITED STATES LIZ CLAIBORNE INC COM 1,700.00 68,104.40 31.56 53,656.25 (14,448.15)
UNITED STATES LOEWS CORP COM 3,200.00 307,670.30 98.25 314,400.00 6,729.70
UNITED STATES MATTEL INC COM 8,166.00 242,661.40 22.81 186,286.88 (56,374.52)
UNITED STATES MORTON INTL INC IND NEW COM 3,414.00 98,819.97 24.50 83,643.00 (15,176.97)
UNITED STATES NIKE INC CL B COM 8,148.00 326,332.20 40.56 330,503.25 4,171.05
UNITED STATES PEPSICO INC COM 41,986.00 1,075,143.42 40.94 1,718,801.88 643,658.46
UNITED STATES PHILIP MORRIS COS INC COM 69,347.00 2,107,333.63 53.50 3,710,064.50 1,602,730.87
UNITED STATES POLAROID CORP COM 900.00 34,055.80 18.69 16,818.75 (17,237.05)
UNITED STATES PROCTER & GAMBLE CO COM 38,026.00 1,947,167.20 91.31 3,472,249.13 1,525,081.93
UNITED STATES QUAKER OATS CO COM 3,849.00 141,492.50 59.50 229,015.50 87,523.00
UNITED STATES RALSTON PURINA CO-RALSTON 8,583.00 302,103.34 32.38 277,874.63 (24,228.71)
UNITED STATES REEBOK INTL LTD COM 1,300.00 40,313.70 14.88 19,337.50 (20,976.20)
UNITED STATES RJR NABISCO HLDGS CORP COM NEW 9,300.00 240,417.00 29.69 276,093.75 35,676.75
UNITED STATES RUBBERMAID INC COM 4,200.00 100,340.40 31.44 132,037.50 31,697.10
UNITED STATES RUSSELL CORP 587.00 13,918.74 20.31 11,923.44 (1,995.30)
UNITED STATES SARA LEE CORP 25,968.00 510,974.80 28.19 731,973.00 220,998.20
UNITED STATES SHERWIN WILLIAMS CO COM 4,944.00 109,268.80 29.38 145,230.00 35,961.20
UNITED STATES TRICON GLOBAL RESTAURANTS INC 4,368.00 119,959.22 50.13 218,946.00 98,986.78
UNITED STATES TUPPERWARE CORP COM 1,400.00 33,565.80 16.44 23,012.50 (10,553.30)
UNITED STATES UST INC COM 5,310.00 158,478.10 34.88 185,186.25 26,708.15
UNITED STATES V F CORP COM 3,500.00 122,253.75 46.88 164,062.50 41,808.75
UNITED STATES WRIGLEY WM JR CO COM 3,211.00 203,236.73 89.56 287,585.19 84,348.46
UNITED STATES ALBERTSONS INC COM 7,265.00 252,038.05 63.69 462,689.69 210,651.64
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES AMERICA ONLINE INC DEL COM 12,500.00 1,830,723.04 160.00 2,000,000.00 169,276.96
UNITED STATES AMERICAN GREETINGS CORP CL A 1,900.00 61,437.60 41.06 78,018.75 16,581.15
UNITED STATES AMERICAN STORES CO NEW COM 7,872.00 199,319.92 36.94 290,772.00 91,452.08
UNITED STATES AMERITECH CORP NEW COM 31,358.00 973,207.38 63.38 1,987,313.25 1,014,105.87
UNITED STATES AT&T CORP COM 51,447.00 2,221,886.00 75.25 3,871,386.75 1,649,500.75
UNITED STATES AUTOZONE INC COM 4,200.00 99,546.40 32.94 138,337.50 38,791.10
UNITED STATES BLOCK H & R INC COM 2,800.00 85,062.30 45.00 126,000.00 40,937.70
UNITED STATES BRUNSWICK CORP COM 2,600.00 65,389.60 24.75 64,350.00 (1,039.60)
UNITED STATES CARNIVAL CORP COM 17,000.00 747,762.00 48.00 816,000.00 68,238.00
UNITED STATES CBS CORP COM 20,018.00 462,055.06 32.75 655,589.50 193,534.44
UNITED STATES CENDANT CORP COM 24,065.00 625,457.97 19.06 458,739.06 (166,718.91)
UNITED STATES CIRCUIT CITY GROUP COM 3,100.00 117,462.10 49.94 154,806.25 37,344.15
UNITED STATES CLEAR CHANNEL COMMUNICATIONS 7,600.00 306,640.80 54.50 414,200.00 107,559.20
UNITED STATES COMCAST CORP CL A SPL 10,600.00 258,482.70 58.69 622,087.50 363,604.80
UNITED STATES CONSOLIDATED STORES CORP COM 2,900.00 119,340.20 20.19 58,543.75 (60,796.45)
UNITED STATES COSTCO COS INC COM 6,231.00 261,339.55 72.19 449,800.31 188,460.76
UNITED STATES CVS CORP 11,200.00 345,771.05 55.00 616,000.00 270,228.95
UNITED STATES DARDEN RESTAURANTS INC 3,800.00 48,895.30 18.00 68,400.00 19,504.70
UNITED STATES DAYTON HUDSON CORP COM 12,622.00 361,495.83 54.25 684,743.50 323,247.67
UNITED STATES DELUXE CORP COM 2,097.00 61,573.05 36.56 76,671.56 15,098.51
UNITED STATES DILLARDS INC CL A COM 2,998.00 98,152.31 28.38 85,068.25 (13,084.06)
UNITED STATES DISNEY WALT CO COM 58,315.00 1,281,658.33 30.00 1,749,450.00 467,791.67
UNITED STATES DOLLAR GEN CORP COM 5,250.00 184,940.25 23.63 124,031.25 (60,909.00)
UNITED STATES DONNELLEY R R & SONS CO COM 3,611.00 116,343.85 43.81 158,206.94 41,863.09
UNITED STATES DOW JONES & CO INC COM 2,491.00 105,913.85 48.13 119,879.38 13,965.53
UNITED STATES EASTMAN KODAK CO COM 9,249.00 588,394.40 72.00 665,928.00 77,533.60
UNITED STATES ECOLAB INC COM 3,534.00 78,097.85 36.19 127,886.63 49,788.78
UNITED STATES FEDERATED DEPT STORES INC DEL 5,600.00 187,681.10 43.56 243,950.00 56,268.90
UNITED STATES FORTUNE BRANDS INC COM 4,887.00 134,182.05 31.63 154,551.38 20,369.33
UNITED STATES GANNETT INC COM 7,976.00 499,588.46 66.19 527,911.50 28,323.04
UNITED STATES GAP INC COM 16,402.00 219,094.74 56.25 922,612.50 703,517.76
UNITED STATES GREAT ATLANTIC & PAC TEA INC 700.00 19,445.40 29.63 20,737.50 1,292.10
UNITED STATES HARCOURT GEN INC 2,246.00 90,205.45 53.19 119,459.13 29,253.68
UNITED STATES HARRAHS ENTMT INC COM 2,646.00 68,708.72 15.69 41,509.13 (27,199.59)
UNITED STATES HILTON HOTELS CORP COM 7,407.00 135,166.95 19.13 141,658.88 6,491.93
UNITED STATES HOME DEPOT INC COM 44,358.00 980,705.32 61.19 2,714,155.13 1,733,449.81
UNITED STATES IKON OFFICE SOLUTIONS INC COM 3,684.00 124,932.47 8.56 31,544.25 (93,388.22)
UNITED STATES IMS HEALTH INC COM 4,834.00 133,702.47 75.44 364,664.88 230,962.41
UNITED STATES INTERPUBLIC GROUP COS INC COM 3,959.00 132,027.74 79.75 315,730.25 183,702.51
UNITED STATES JOSTENS INC 700.00 16,476.60 26.19 18,331.25 1,854.65
UNITED STATES K MART CORP COM 13,950.00 174,042.35 15.31 213,609.38 39,567.03
UNITED STATES KING WORLD PRODTNS INC COM 1,900.00 50,265.80 29.44 55,931.25 5,665.45
UNITED STATES KNIGHT RIDDER INC 2,296.00 109,128.00 51.13 117,383.00 8,255.00
UNITED STATES KOHLS CORP COM 4,400.00 249,238.00 61.44 270,325.00 21,087.00
UNITED STATES KROGER CO COM 7,386.00 236,362.33 60.50 446,853.00 210,490.67
</TABLE>
29
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES LIMITED INC COM 6,272.00 112,293.78 29.13 182,672.00 70,378.22
UNITED STATES LONGS DRUG STORES CORP COM 1,228.00 32,728.80 37.50 46,050.00 13,321.20
UNITED STATES LOWES COS INC COM 9,966.00 287,576.31 51.19 510,134.63 222,558.32
UNITED STATES MARRIOTT INTL INC NEW CL A 7,172.00 123,584.57 29.00 207,988.00 84,403.43
UNITED STATES MAY DEPT STORES CO COM 6,863.00 264,131.40 60.38 414,353.63 150,222.23
UNITED STATES MCDONALDS CORP COM 19,215.00 787,927.03 76.63 1,472,349.38 684,422.35
UNITED STATES MCGRAW HILL COS INC COM 3,100.00 138,055.70 101.88 315,812.50 177,756.80
UNITED STATES MEDIAONE GROUP INC COM 17,040.00 354,616.55 47.00 800,880.00 446,263.45
UNITED STATES MEREDITH CORP COM 1,200.00 44,449.60 37.88 45,450.00 1,000.40
UNITED STATES MEYER FRED INC DEL NEW COM 4,400.00 205,652.20 60.25 265,100.00 59,447.80
UNITED STATES MIRAGE RESORTS INC COM 5,100.00 132,804.50 14.94 76,181.25 (56,623.25)
UNITED STATES NATIONAL SVC INDS INC COM 900.00 33,243.00 38.00 34,200.00 957.00
UNITED STATES NEW YORK TIMES CO CL A 5,000.00 111,125.20 34.69 173,437.50 62,312.30
UNITED STATES NORDSTROM INC WASH COM 4,302.00 89,278.00 34.69 149,225.63 59,947.63
UNITED STATES OMNICOM GROUP INC COM 4,900.00 223,715.10 58.00 284,200.00 60,484.90
UNITED STATES PENNEY J C INC COM 7,272.00 468,645.04 46.88 340,875.00 (127,770.04)
UNITED STATES PEP BOYS MANNY MOE & JACK COM 1,500.00 43,092.50 15.69 23,531.25 (19,561.25)
UNITED STATES RITE AID CORP COM 7,300.00 124,096.90 49.56 361,806.25 237,709.35
UNITED STATES SAFEWAY INC NEW COM 14,000.00 684,287.79 60.94 853,125.00 168,837.21
UNITED STATES SEARS ROEBUCK & CO COM 10,762.00 455,932.29 42.50 457,385.00 1,452.71
UNITED STATES SERVICE CORP INTL COM 7,376.00 305,739.71 38.06 280,749.00 (24,990.71)
UNITED STATES SPRINT CORP (FON GROUP) COM 12,362.00 474,838.90 84.13 1,039,953.25 565,114.35
UNITED STATES STAPLES INC COM 9,000.00 255,937.50 43.69 393,187.50 137,250.00
UNITED STATES SUPERVALU INC COM 3,300.00 53,758.10 28.00 92,400.00 38,641.90
UNITED STATES SYSCO CORP COM 9,534.00 176,711.86 27.44 261,589.13 84,877.27
UNITED STATES TANDY CORP COM 2,818.00 64,127.25 41.19 116,066.38 51,939.13
UNITED STATES TELE COMMUNICATIONS INC NEW 15,547.00 315,419.13 55.31 859,943.44 544,524.31
UNITED STATES TIMES MIRROR CO NEW COM SER A 2,076.00 87,892.11 56.00 116,256.00 28,363.89
UNITED STATES TJX COS INC NEW COM 8,900.00 132,387.50 29.00 258,100.00 125,712.50
UNITED STATES TRIBUNE CO NEW COM 3,400.00 129,359.90 66.00 224,400.00 95,040.10
UNITED STATES VIACOM INC CL B 10,024.00 412,363.28 74.00 741,776.00 329,412.72
UNITED STATES WAL MART STORES INC COM 64,228.00 1,989,546.40 81.44 5,230,567.75 3,241,021.35
UNITED STATES WALGREEN CO 14,280.00 293,071.50 58.56 836,272.50 543,201.00
UNITED STATES WENDYS INTL INC COM 3,100.00 64,974.60 21.81 67,618.75 2,644.15
UNITED STATES WINN DIXIE STORES INC 4,150.00 125,919.05 44.88 186,231.25 60,312.20
UNITED STATES DUN & BRADSTREET CORP DEL 4,834.00 43,833.05 31.56 152,573.13 108,740.08
UNITED STATES ARCHER DANIELS MIDLAND CO COM 16,641.00 301,296.16 17.19 286,017.19 (15,278.97)
UNITED STATES AEROQUIP-VICKERS INC COM 400.00 10,683.20 29.94 11,975.00 1,291.80
UNITED STATES BLACK & DECKER CORP COM 2,435.00 77,743.10 56.06 136,512.19 58,769.09
UNITED STATES COOPER TIRE & RUBR CO 1,964.00 42,387.58 20.44 40,139.25 (2,248.33)
UNITED STATES CORNING INC COM 6,764.00 245,218.18 45.00 304,380.00 59,161.82
UNITED STATES FLEETWOOD ENTERPRISES INC COM 1,100.00 29,803.30 34.75 38,225.00 8,421.70
UNITED STATES FORD MTR CO DEL COM 34,562.00 836,277.44 58.69 2,028,357.38 1,192,079.94
UNITED STATES GENERAL INSTR CORP DEL COM 4,800.00 106,392.94 33.94 162,900.00 56,507.06
UNITED STATES GENERAL MTRS CORP COM 18,516.00 970,619.14 71.56 1,325,051.25 354,432.11
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES GENUINE PARTS CO COM 5,189.00 150,217.02 33.44 173,507.19 23,290.17
UNITED STATES GOODYEAR TIRE & RUBR CO COM 4,427.00 202,704.88 50.44 223,286.81 20,581.93
UNITED STATES MASCO CORP COM 9,264.00 182,128.20 28.75 266,340.00 84,211.80
UNITED STATES MAYTAG CORP COM 2,595.00 43,066.93 62.25 161,538.75 118,471.82
UNITED STATES NEWELL CO COM 4,473.00 167,079.71 41.25 184,511.25 17,431.54
UNITED STATES PULTTE CORP COM 900.00 25,024.30 27.81 25,031.25 6.95
UNITED STATES SNAP ON INC COM 1,405.00 47,878.86 34.81 48,911.56 1,032.70
UNITED STATES SPRINGS INDS INC CL A 600.00 29,224.60 41.44 24,862.50 (4,362.10)
UNITED STATES TOYS R US INC COM 6,982.00 200,525.40 16.88 117,821.25 (82,704.15)
UNITED STATES WHIRLPOOL CORP COM 2,356.00 118,246.30 55.38 130,463.50 12,217.20
UNITED STATES AES CORP COM 4,900.00 178,948.00 47.38 232,137.50 53,189.50
UNITED STATES AMERADA HESS CORP COM 2,455.00 139,949.25 49.75 122,136.25 (17,813.00)
UNITED STATES ANADARKO PETE CORP COM 3,300.00 112,998.90 30.88 101,887.50 (11,111.40)
UNITED STATES APACHE CORP COM 2,300.00 82,190.30 25.31 58,218.75 (23,971.55)
UNITED STATES ASHLAND INC 2,400.00 105,916.80 48.38 116,100.00 10,183.20
UNITED STATES ATLANTIC RICHFIELD CO COM 9,164.00 629,863.00 65.25 597,951.00 (31,912.00)
UNITED STATES BAKER HUGHES INC COM 8,881.00 251,132.33 17.69 157,082.69 (94,049.64)
UNITED STATES BURLINGTON RES INC COM 5,131.00 212,271.95 35.81 183,753.94 (28,518.01)
UNITED STATES CHEVRON CORP COM 18,488.00 1,121,901.95 82.94 1,533,348.50 411,446.55
UNITED STATES COASTAL CORP COM 6,136.00 139,717.50 34.94 214,376.50 74,659.00
UNITED STATES EASTERN ENTERPRISES 600.00 21,062.00 43.75 26,250.00 5,188.00
UNITED STATES ENRON CORP COM 9,696.00 354,654.30 57.06 553,278.00 198,623.70
UNITED STATES EXXON CORP COM 69,214.00 3,274,364.85 73.13 5,061,273.75 1,786,908.90
UNITED STATES HALLIBURTON CO COM 12,592.00 397,997.61 29.63 373,038.00 (24,959.61)
UNITED STATES HELMERICH & PAYNE INC COM 1,108.00 24,410.46 19.38 21,467.50 (2,942.96)
UNITED STATES KERR MCGEE CORP 1,047.00 50,180.43 38.25 40,047.75 (10,132.68)
UNITED STATES MCDERMOTT INTL INC COM 1,228.00 28,030.56 24.69 30,316.25 2,285.69
UNITED STATES MOBIL CORP COM 22,188.00 1,228,281.80 87.13 1,933,129.50 704,847.70
UNITED STATES OCCIDENTAL PETE CORP COM 9,661.00 231,231.85 16.88 163,029.38 (68,202.47)
UNITED STATES ORYX ENERGY CO COM 2,800.00 52,949.80 13.44 37,625.00 (15,324.80)
UNITED STATES PHILLIPS PETE CO COM 7,359.00 268,324.63 42.63 313,677.38 45,352.75
UNITED STATES ROWAN COS INC COM 2,200.00 46,588.10 10.00 22,000.00 (24,588.10)
UNITED STATES SONAT INC COM 2,931.00 111,275.63 27.06 79,320.19 (31,955.44)
UNITED STATES SUNOCO INC COM 2,500.00 85,381.90 36.06 90,156.25 4,774.35
UNITED STATES TEXACO INC COM 15,420.00 714,516.23 52.88 815,332.50 100,816.27
UNITED STATES UNION PAC RES GROUP INC COM 7,024.00 156,615.39 9.06 63,655.00 (92,960.39)
UNITED STATES UNOCAL CORP COM 6,560.00 206,857.12 29.19 191,470.00 (15,387.12)
UNITED STATES USX MARATHON GROUP NEW COM 8,830.00 197,427.50 30.13 266,003.75 68,576.25
UNITED STATES WILLIAMS COS INC COM 12,200.00 268,156.48 31.19 380,487.50 112,331.02
UNITED STATES TIME WARNER INC COM 35,252.00 933,875.80 62.06 2,187,827.25 1,253,951.45
UNITED STATES AMR CORP DEL COM 5,448.00 249,294.75 59.38 323,475.00 74,180.25
UNITED STATES BURLINGTON NORTH SANTA FE CORP 13,056.00 353,495.83 33.75 440,640.00 87,144.17
UNITED STATES CSX CORP COM 6,420.00 268,891.50 41.50 266,430.00 (2,461.50)
UNITED STATES DELTA AIR LINES INC DEL COM 4,182.00 152,465.10 52.00 217,464.00 64,998.90
UNITED STATES FDX CORP COM 4,154.00 153,378.55 89.00 369,706.00 216,327.45
</TABLE>
31
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES NORFOLK SOUTHN CORP COM 10,820.00 279,724.05 31.69 342,858.75 63,134.70
UNITED STATES RYDER SYS INC COM 1,925.00 53,101.00 26.00 50,050.00 (3,051.00)
UNITED STATES SOUTHWEST AIRLS CO COM 9,350.00 92,528.40 22.44 209,790.63 117,262.23
UNITED STATES UNION PAC CORP COM 6,777.00 391,453.19 45.06 305,388.56 (86,064.63)
UNITED STATES US AIRWAYS GROUP INC COM 2,400.00 98,404.30 52.00 124,800.00 26,395.70
UNITED STATES ADOBE SYS INC DEL COM 1,800.00 80,625.20 46.75 84,150.00 3,524.80
UNITED STATES ADVANCED MICRO DEVICES INC COM 3,927.00 112,643.66 28.94 113,637.56 993.90
UNITED STATES AIRTOUCH COMMUNICATIONS INC 16,510.00 599,997.40 72.13 1,190,783.75 590,786.35
UNITED STATES AMP INC COM 6,466.00 257,227.20 52.06 336,636.13 79,408.93
UNITED STATES ANDREW CORP COM 2,300.00 86,255.70 16.50 37,950.00 (48,305.70)
UNITED STATES APPLE COMPUTER INC 4,000.00 69,587.80 40.94 163,750.00 94,162.20
UNITED STATES APPLIED MATLS INC COM 10,500.00 258,819.10 42.69 448,218.75 189,399.65
UNITED STATES ASCEND COMMUNICATIONS INC COM 6,000.00 292,081.50 65.75 394,500.00 102,418.50
UNITED STATES AUTODESK INC COM 1,500.00 43,666.00 42.69 64,031.25 20,365.25
UNITED STATES AUTOMATIC DATA PROCESSING INC 8,688.00 343,920.40 80.19 696,669.00 352,748.60
UNITED STATES BELL ATLANTIC CORP COM 44,140.00 1,407,006.46 53.00 2,339,420.00 932,413.54
UNITED STATES BELLSOUTH CORP COM 55,496.00 1,256,605.80 49.88 2,767,863.00 1,511,257.20
UNITED STATES BMC SOFTWARE INC COM 6,300.00 358,522.70 44.56 280,743.75 (77,778.95)
UNITED STATES CABLETRON SYS INC COM 4,500.00 126,141.00 8.38 37,687.50 (88,453.50)
UNITED STATES CERIDIAN CORP COM 2,000.00 92,321.40 69.81 139,625.00 47,303.60
UNITED STATES CISCO SYS INC COM 44,885.00 1,245,741.65 92.81 4,165,889.06 2,920,147.41
UNITED STATES COMPAQ COMPUTER CORP COM 48,331.00 988,456.69 41.94 2,026,881.31 1,038,424.62
UNITED STATES COMPUTER ASSOC INTL INC COM 15,399.00 476,507.73 42.63 656,382.38 179,874.65
UNITED STATES COMPUTER SCIENCES CORP COM 4,500.00 132,538.80 64.44 289,968.75 157,429.95
UNITED STATES DATA GEN CORP COM 1,000.00 22,382.90 16.44 16,437.50 (5,945.40)
UNITED STATES DELL COMPUTER CORP COM 36,400.00 544,522.91 73.19 2,664,025.00 2,119,502.09
UNITED STATES EG & G INC 900.00 24,436.50 27.81 25,031.25 594.75
UNITED STATES ELECTRONIC DATA SYS CORP NEW 14,100.00 576,944.50 50.25 708,525.00 131,580.50
UNITED STATES EMC CORP MASS 14,400.00 288,670.10 85.00 1,224,000.00 935,329.90
UNITED STATES FIRST DATA CORP COM 12,212.00 430,760.57 31.69 386,967.75 (43,792.82)
UNITED STATES FRONTIER CORP COM 4,600.00 115,936.00 34.00 156,400.00 40,464.00
UNITED STATES GATEWAY 2000 INC COM 4,400.00 236,051.10 51.19 225,225.00 (10,826.10)
UNITED STATES HARRIS CORP DEL COM 2,006.00 74,072.93 36.63 73,469.75 (603.18)
UNITED STATES HBO & CO COM 12,900.00 305,023.60 28.69 370,068.75 65,045.15
UNITED STATES HEWLETT PACKARD CO COM 29,604.00 1,381,372.30 68.31 2,022,323.25 640,950.95
UNITED STATES HONEYWELL INC COM 3,572.00 176,968.30 75.31 269,016.25 92,047.95
UNITED STATES IBM CORP COM 26,820.00 1,844,348.90 184.75 4,954,995.00 3,110,646.10
UNITED STATES INTEL CORP CALIF COM 47,824.00 1,998,094.05 118.56 5,670,133.00 3,672,038.95
UNITED STATES KLA TENCOR CORP 2,400.00 79,381.50 43.38 104,100.00 24,718.50
UNITED STATES LOCKHEED MARTIN CORP COM 5,612.00 548,805.24 84.75 475,617.00 (73,188.24)
UNITED STATES LSI LOGIC CORP COM 4,000.00 103,718.60 16.13 64,500.00 (39,218.60)
UNITED STATES LUCENT TECHNOLOGIES INC COM 37,768.00 1,326,624.38 110.00 4,154,480.00 2,827,855.62
UNITED STATES MCI WORLDCOM INC COM 52,167.00 1,677,612.41 71.75 3,742,982.25 2,065,369.84
UNITED STATES MICRON TECHNOLOGY INC COM 6,174.00 184,496.73 50.56 312,172.88 127,676.15
UNITED STATES MICROSOFT CORP COM 71,072.00 3,095,915.50 138.69 9,856,798.00 6,760,882.50
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES MOTOROLA INC COM 17,220.00 1,064,083.15 61.06 1,051,496.25 (12,586.90)
UNITED STATES NATIONAL SEMICONDUCTOR CORP 4,700.00 132,131.70 13.50 63,450.00 (68,681.70)
UNITED STATES NEXTEL COMMUNICATIONS INC CL A 8,100.00 261,494.10 23.63 191,362.50 (70,131.60)
UNITED STATES NOVELL INC 10,000.00 104,497.40 18.13 181,250.00 76,752.60
UNITED STATES ORACLE CORPORATION COM 27,598.00 698,354.86 43.13 1,190,163.75 491,808.89
UNITED STATES PARAMETRIC TECHNOLOGY CORP COM 7,600.00 168,506.70 16.38 124,450.00 (44,056.70)
UNITED STATES PEOPLESOFT INC COM 6,500.00 157,215.50 18.94 123,093.75 (34,121.75)
UNITED STATES PERKIN ELMER CORP COM 1,400.00 89,159.70 97.56 136,587.50 47,427.80
UNITED STATES PIONEER HI BRED INTL 6,900.00 168,196.39 27.00 186,300.00 18,103.61
UNITED STATES PITNEY BOWES INC COM 7,636.00 266,203.05 66.06 504,453.25 238,250.20
UNITED STATES SBC COMMUNICATIONS INC COM 55,778.00 1,523,342.68 53.63 2,991,095.25 1,467,752.57
UNITED STATES SCIENTIFIC ATLANTA INC 1,900.00 37,525.80 22.81 43,343.75 5,817.95
UNITED STATES SEAGATE TECHNOLOGY COM 6,700.00 233,659.20 30.25 202,675.00 (30,984.20)
UNITED STATES SHARED MED SYS CORP 800.00 41,214.00 49.88 39,900.00 (1,314.00)
UNITED STATES SILICON GRAPHICS INC COM 5,090.00 96,666.90 12.88 65,533.75 (31,133.15)
UNITED STATES SPRINT CORP PCS COM SER 1 11,581.00 147,140.44 23.13 267,810.63 120,670.19
UNITED STATES SUN MICROSYSTEMS INC COM 10,732.00 276,768.70 85.63 918,927.50 642,158.80
UNITED STATES TEKTRONIX INC COM 1,150.00 37,234.73 30.06 34,571.88 (2,662.85)
UNITED STATES TELLABS INC COM 5,700.00 332,254.90 68.56 390,806.25 58,551.35
UNITED STATES TEXAS INSTRS INC COM 11,228.00 429,725.10 85.56 960,695.75 530,970.65
UNITED STATES UNISYS CORP 7,000.00 112,278.30 34.44 241,062.50 128,784.20
UNITED STATES UNITED TECHNOLOGIES CORP COM 6,442.00 425,145.95 108.75 700,567.50 275,421.55
UNITED STATES XEROX CORP COM 9,274.00 516,725.43 118.00 1,094,332.00 577,606.57
UNITED STATES 3COM CORP COM 10,300.00 412,803.30 44.81 461,568.75 48,765.45
UNITED STATES AIR PRODS & CHEMS INC COM 6,380.00 215,218.30 40.00 255,200.00 39,981.70
UNITED STATES ALLEGHENY TELEDYNE INC COM 5,300.00 127,106.60 20.44 108,318.75 (18,787.85)
UNITED STATES ALLIED SIGNAL INC COM 16,098.00 551,128.75 44.31 713,342.63 162,213.88
UNITED STATES ALUMINUM CO AMER COM 5,550.00 311,697.98 74.56 413,821.88 102,123.90
UNITED STATES ASARCO INC 781.00 17,932.12 15.06 11,763.81 (6,168.31)
UNITED STATES AVERY DENNISON CORP COM 3,238.00 125,569.85 45.06 145,912.38 20,342.53
UNITED STATES BATTLE MTN GOLD CO COM 6,200.00 46,389.80 4.13 25,575.00 (20,814.80)
UNITED STATES BEMIS INC COM 1,200.00 47,686.60 37.94 45,525.00 (2,161.60)
UNITED STATES BETHLEHEM STL CORP COM 3,600.00 39,816.10 8.38 30,150.00 (9,666.10)
UNITED STATES BOISE CASCADE CORP COM 1,200.00 37,017.80 31.00 37,200.00 182.20
UNITED STATES BROWNING FERRIS INDS INC COM 4,711.00 149,751.45 28.44 133,969.06 (15,782.39)
UNITED STATES CHAMPION INTL CORP COM 2,585.00 104,605.05 40.50 104,692.50 87.45
UNITED STATES CYPRUS AMAX MINERALS CO COM 2,397.00 62,225.08 10.00 23,970.00 (38,255.08)
UNITED STATES DOW CHEM CO COM 6,267.00 442,798.53 90.94 569,905.31 127,106.78
UNITED STATES DU PONT E I DE NEMOURS & CO 32,274.00 1,532,461.55 53.06 1,712,539.13 180,077.58
UNITED STATES ENGELHARD CORP 4,000.00 83,423.90 19.50 78,000.00 (5,423.90)
UNITED STATES FMC CORP NEW COM 1,200.00 84,849.00 56.00 67,200.00 (17,649.00)
UNITED STATES FREEPORT MCMORAN COPPER B 4,300.00 112,280.20 10.44 44,881.25 (67,398.95)
UNITED STATES GEORGIA PAC CORP COM 2,388.00 128,665.44 58.56 139,847.25 11,181.81
UNITED STATES GOODRICH B F CO 1,800.00 74,548.80 35.88 64,575.00 (9,973.80)
UNITED STATES GRACE WR & CO DEL NEW COM 1,843.00 21,929.94 15.69 28,912.06 6,982.12
</TABLE>
33
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES GREAT LAKES CHEM CORP COM 1,400.00 58,026.11 40.00 56,000.00 (2,026.11)
UNITED STATES HARNISCHFEGER INDS INC COM 1,100.00 32,197.00 10.19 11,206.25 (20,990.75)
UNITED STATES HERCULES INC COM 2,676.00 120,870.80 27.38 73,255.50 (47,615.30)
UNITED STATES HOMESTAKE MNG CO COM 6,400.00 79,871.60 9.19 58,800.00 (21,071.60)
UNITED STATES INTERNATIONAL PAPER CO COM 8,610.00 350,293.88 44.81 385,835.63 35,541.75
UNITED STATES LOUISIANA PAC CORP COM 2,900.00 71,733.00 18.31 53,106.25 (18,626.75)
UNITED STATES MEAD CORP COM 2,794.00 80,278.38 29.31 81,899.13 1,620.75
UNITED STATES MILACRON INC COM 700.00 14,520.40 19.25 13,475.00 (1,045.40)
UNITED STATES MINNESOTA MNG & MFG CO COM 11,652.00 806,301.95 71.13 828,748.50 22,446.55
UNITED STATES MONSANTO CO COM 17,990.00 459,495.88 47.50 854,525.00 395,029.12
UNITED STATES NACCO INDS INC CL A 300.00 15,068.50 92.00 27,600.00 12,531.50
UNITED STATES NALCO CHEM CO COM 1,600.00 49,526.00 31.00 49,600.00 74.00
UNITED STATES NEWMONT MNG CORP COM 4,457.00 169,673.61 18.06 80,504.56 (89,169.05)
UNITED STATES NUCOR CORP 2,246.00 112,230.80 43.25 97,139.50 (15,091.30)
UNITED STATES OWENS ILL INC NEW 4,500.00 168,396.60 30.63 137,812.50 (30,584.10)
UNITED STATES PHELPS DODGE CORP COM 1,462.00 99,375.45 50.88 74,379.25 (24,996.20)
UNITED STATES POTLATCH CORP COM 886.00 41,082.62 36.88 32,671.25 (8,411.37)
UNITED STATES PPG INDS INC COM 5,188.00 237,155.90 58.25 302,201.00 65,045.10
UNITED STATES PRAXAIR INC COM 4,487.00 150,727.68 35.25 158,166.75 7,439.07
UNITED STATES REYNOLDS METALS CO COM 1,800.00 105,411.00 52.69 94,837.50 (10,573.50)
UNITED STATES ROHM & HAAS CO COM 4,500.00 142,644.00 30.13 135,562.50 (7,081.50)
UNITED STATES SEALED AIR CORP NEW COM 2,155.00 85,134.74 51.06 110,039.69 24,904.95
UNITED STATES SIGMA ALDRICH CORP 2,600.00 67,683.02 29.38 76,375.00 8,691.98
UNITED STATES TEMPLE INLAND INC COM 1,800.00 91,970.80 59.31 106,762.50 14,791.70
UNITED STATES UNION CAMP CORP COM 2,156.00 106,762.80 67.50 145,530.00 38,767.20
UNITED STATES UNION CARBIDE CORP COM 3,887.00 126,346.00 42.50 165,197.50 38,851.50
UNITED STATES USX U S STL GROUP COM 2,198.00 60,401.50 23.00 50,554.00 (9,847.50)
UNITED STATES VENATOR GROUP INC COM 3,700.00 71,881.00 6.44 23,818.75 (48,062.25)
UNITED STATES WASTE MGMT INC DEL COM 16,412.00 781,329.84 46.63 765,209.50 (16,120.34)
UNITED STATES WESTVACO CORP COM 2,700.00 75,460.35 26.81 72,393.75 (3,066.60)
UNITED STATES WEYERHAEUSER CO COM 5,714.00 256,592.50 50.81 290,342.63 33,750.13
UNITED STATES WILLAMETTE INDS INC 3,000.00 99,216.00 33.50 100,500.00 1,284.00
UNITED STATES WORTHINGTON INDS INC COM 2,500.00 49,990.60 12.50 31,250.00 (18,740.60)
UNITED STATES ARMSTRONG WORLD INDS INC COM 1,300.00 88,919.80 60.31 78,406.25 (10,513.55)
UNITED STATES BOEING CO COM 28,564.00 941,859.71 32.63 931,900.50 (9,959.21)
UNITED STATES BRIGGS & STRATTON CORP 800.00 37,616.10 49.88 39,900.00 2,283.90
UNITED STATES CASE CORP COM 1,900.00 94,200.50 21.81 41,443.75 (52,756.75)
UNITED STATES CATERPILLAR INC 10,410.00 385,656.60 46.00 478,860.00 93,203.40
UNITED STATES CENTEX CORP COM 1,800.00 37,711.80 45.06 81,112.50 43,400.70
UNITED STATES COOPER INDS INC COM 2,837.00 120,518.65 47.69 135,289.44 14,770.79
UNITED STATES CRANE CO 1,600.00 49,969.60 30.19 48,300.00 (1,669.60)
UNITED STATES CUMMINS ENGINE INC COM 1,200.00 58,574.00 35.50 42,600.00 (15,974.00)
UNITED STATES DANA CORP 4,670.00 153,923.95 40.88 190,886.25 36,962.30
UNITED STATES DANAHER CORP COM 3,900.00 183,378.00 54.31 211,818.75 28,440.75
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES DEERE & CO COM 6,446.00 308,403.00 33.13 213,523.75 (94,879.25)
UNITED STATES DOVER CORP COM 6,108.00 123,156.35 36.63 223,705.50 100,549.15
UNITED STATES EATON CORP 2,009.00 112,802.13 70.69 142,011.19 29,209.06
UNITED STATES EMERSON ELEC CO COM 12,696.00 557,557.60 60.50 768,108.00 210,550.40
UNITED STATES FLUOR CORP 2,121.00 124,023.75 42.56 90,275.06 (33,748.69)
UNITED STATES FOSTER WHEELER CORP 800.00 14,759.90 13.19 10,550.00 (4,209.90)
UNITED STATES GENERAL DYNAMICS CORP COM 3,500.00 116,985.00 58.63 205,187.50 88,202.50
UNITED STATES GENERAL ELEC CO COM 93,410.00 4,248,526.40 102.06 9,533,658.13 5,285,131.73
UNITED STATES GRAINGER W W INC COM 2,666.00 100,475.13 41.63 110,972.25 10,497.12
UNITED STATES ILLINOIS TOOL WKS INC COM 7,396.00 327,937.00 58.00 428,968.00 101,031.00
UNITED STATES INGERSOLL RAND CO 4,763.00 127,482.27 46.94 223,563.31 96,081.04
UNITED STATES ITT INDS INC IND COM 2,700.00 74,854.10 39.75 107,325.00 32,470.90
UNITED STATES JOHNSON CTLS INC COM 2,634.00 101,574.21 59.00 155,406.00 53,831.79
UNITED STATES KAUFMAN & BROAD HOME CORP COM 1,200.00 28,174.00 28.75 34,500.00 6,326.00
UNITED STATES NAVISTAR INTL CORP NEW COM 1,800.00 52,648.90 28.50 51,300.00 (1,348.90)
UNITED STATES NORTHROP GRUMMAN CORP COM 2,100.00 158,598.30 73.13 153,562.50 (5,035.80)
UNITED STATES OWENS CORNING COM 1,700.00 63,377.80 35.44 60,243.75 (3,134.05)
UNITED STATES PACCAR INC 2,104.00 87,284.80 41.13 86,527.00 (757.80)
UNITED STATES PALL CORP COM 3,493.00 73,432.50 25.31 88,416.56 14,984.06
UNITED STATES PARKER HANNIFIN CORP COM 3,049.00 72,619.75 32.75 99,854.75 27,235.00
UNITED STATES RAYCHEM CORP COM 2,300.00 79,001.00 32.31 74,318.75 (4,682.25)
UNITED STATES RAYTHEON CO CL B 9,704.00 428,452.10 53.25 516,738.00 88,285.90
UNITED STATES ROCKWELL INTL CORP NEW COM 5,606.00 239,790.49 48.56 272,241.38 32,450.89
UNITED STATES STANLEY WKS 2,300.00 81,332.80 27.75 63,825.00 (17,507.80)
UNITED STATES TENNECO INC NEW COM 4,491.00 182,123.06 34.06 152,974.69 (29,148.37)
UNITED STATES TEXTRON INC COM 4,698.00 179,986.93 75.94 356,754.38 176,767.45
UNITED STATES THERMO ELECTRON CORP COM 4,200.00 149,965.40 16.94 71,137.50 (78,827.90)
UNITED STATES THOMAS & BETTS CORP COM 1,700.00 75,802.80 43.31 73,631.25 (2,171.55)
UNITED STATES TIMKEN CO 1,500.00 47,739.95 18.88 28,312.50 (19,427.45)
UNITED STATES TRW INC 3,440.00 152,116.30 56.19 193,285.00 41,168.70
UNITED STATES ALLTEL CORP 7,749.00 291,750.38 59.81 463,487.06 171,736.68
UNITED STATES AMEREN CORP 3,900.00 154,915.90 42.69 166,481.25 11,565.35
UNITED STATES AMERICAN ELEC PWR INC COM 5,478.00 221,188.10 47.06 257,808.38 36,620.28
UNITED STATES BALTIMORE GAS & ELEC CO COM 4,152.00 113,898.24 30.88 128,193.00 14,294.76
UNITED STATES CAROLINA PWR & LT CO COM 4,266.00 142,970.65 47.06 200,768.63 57,797.98
UNITED STATES CENTRAL & SOUTH WEST CORP COM 5,656.00 133,134.70 27.44 155,186.50 22,051.80
UNITED STATES CINERGY CORP COM 4,417.00 137,614.33 34.38 151,834.38 14,220.05
UNITED STATES COLUMBIA ENERGY GROUP COM 2,200.00 90,418.39 57.75 127,050.00 36,631.61
UNITED STATES CONSOLIDATED EDISON INC COM 6,427.00 204,961.35 52.88 339,827.63 134,866.28
UNITED STATES CONSOLIDATED NAT GAS CO COM 2,974.00 136,553.80 54.00 160,596.00 24,042.20
UNITED STATES DOMINION RES INC VA COM 5,382.00 207,086.35 46.75 251,608.50 44,522.15
UNITED STATES DTE ENERGY CO COM 4,014.00 114,928.60 42.88 172,100.25 57,171.65
UNITED STATES DUKE ENERGY CORP COM 10,351.00 447,185.37 64.06 663,110.94 215,925.57
UNITED STATES EDISON INTL COM 10,026.00 195,533.05 27.88 279,474.75 83,941.70
</TABLE>
35
<PAGE>
<TABLE>
<CAPTION>
Country Description Units Cost Market Market Unrealized
Name ----------- ----- ---- Price Value Gain Loss
---- ----- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
UNITED STATES ENTERGY CORP NEW COM 7,088.00 179,926.10 31.13 220,614.00 40,687.90
UNITED STATES FIRSTENERGY CORP COM 6,390.00 157,661.80 32.56 208,074.38 50,412.58
UNITED STATES FPL GROUP INC COM 5,283.00 216,406.88 61.63 325,564.88 109,158.00
UNITED STATES GPU INC COM 3,800.00 136,289.30 44.19 167,912.50 31,623.20
UNITED STATES GTE CORP COM 27,393.00 1,161,393.68 65.00 1,780,545.00 619,151.32
UNITED STATES HOUSTON INDS INC COM 7,958.00 168,667.63 32.13 255,650.75 86,983.12
UNITED STATES NEW CENTURY ENERGIES INC COM 3,200.00 156,064.00 48.75 156,000.00 (64.00)
UNITED STATES NIAGARA MOHAWK PWR CORP COM 4,900.00 56,592.30 16.13 79,012.50 22,420.20
UNITED STATES NICOR INC COM 1,500.00 42,467.50 42.25 63,375.00 20,907.50
UNITED STATES NORTHERN STS PWR CO MINN COM 4,200.00 100,441.15 27.75 116,550.00 16,108.85
UNITED STATES ONEOK INC NEW COM 878.00 24,123.46 36.13 31,717.75 7,594.29
UNITED STATES P P & L RESOURCES INC COM 4,200.00 98,387.40 27.88 117,075.00 18,687.60
UNITED STATES PACIFICORP COM 8,334.00 170,085.20 21.06 175,534.88 5,449.68
UNITED STATES PECO ENERGY CO COM 6,521.00 165,466.05 41.63 271,436.63 105,970.58
UNITED STATES PEOPLES ENERGY CORP ILL COM 1,100.00 38,597.00 39.88 43,862.50 5,265.50
UNITED STATES PG&E CORP COM 10,881.00 295,490.95 31.50 342,751.50 47,260.55
UNITED STATES PUBLIC SVC ENTERPRISE GROUP 6,320.00 179,666.40 40.00 252,800.00 73,133.60
UNITED STATES SEMPRA ENERGY COM 6,559.00 164,617.71 25.38 166,434.63 1,816.92
UNITED STATES SOUTHERN CO COM 19,552.00 431,661.70 29.06 568,230.00 136,568.30
UNITED STATES TEXAS UTILS CO COM 7,910.00 300,095.32 46.69 369,298.13 69,202.81
UNITED STATES U S WEST INC NEW COM 14,468.00 440,371.52 64.63 934,994.50 494,622.98
UNITED STATES UNICOM CORP COM 6,337.00 166,874.20 38.56 244,370.56 77,496.36
UNITED STATES EASTMAN CHEM CO COM 1,996.00 106,641.80 44.75 89,321.00 (17,320.80)
DIVIDENDS RECEIVABLE - 304,498.84 1.00 304,498.84 -
-------------------------------------------------------
$175,055,152.14 $285,779,812.63 $110,724,660.49
Reconciling Items: Deposit in Transit 82,350.00 82,350.00
Other Miscellaneous Items 26,096.00 26,096.00
--------------- ---------------
175,163,598.14 285,888,258.63
</TABLE>
36
<PAGE>
<TABLE>
<CAPTION>
Pooled Separate Account Managed by Dwight Asset Management Group
Asset Listing
December 31, 1998
12/31/98 12/31/98
Original Current 12/31/98 12/31/98 Purchase Moody's/S&P Principal Accrued Market
Face Amt Face Amt Bond Coupon Price Yield Price Rating Value Interest Value
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CMBS - Conduit
6,000,000 5,971,231 CSFB 5.960% 100.406250 5.92% 100.766 Aaa AAA 5,995,488.85 19,771.41 6,015,260.26
98-C2 A1
- ----------------------------------------------------------------------------------------------------------------------------------
Asset Backed
8,000,000 8,000,000 EQCC 6.560% 101.328125 6.16% 102.016 Aaa AAA 8,106,250.00 23,324.44 8,129,574.44
96-1
A4
- ----------------------------------------------------------------------------------------------------------------------------------
Cash
0 CASH 0.000% 100.000000 100.000 Aaa AAA 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------------------
14,000,000 13,971,231 6.06% Aaa AAA 14,101,738,85 43,095.85 14,144,834.70
==================================================================================================================================
</TABLE>
37
<PAGE>
State Street Research and Management Portfolio December 31, 1998
BONDS
<TABLE>
<CAPTION>
U S Government
Shares/ Market Total % Total %
Par Value Security Coupon Maturity Price Book Value Market Market Income Yield
--------- -------- ------ -------- ----- ---------- ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U S Treasury
2,625,000 U S Treasury Bond 12 8/15/2013-08 152.672 3,813,708 4,007,640 1.6 315,000 5.03
6,200,000 U S Treasury Bond 8.75 5/15/2017 139.109 8,155,644 8,624,758 3.4 542,500 5.37
3,050,000 U S Treasury Bond 8.5 2/15/2020 138.656 3,979,546 4,229,008 1.7 259,250 5.41
6,850,000 U S Treasury Bond 6.875 8/15/2025 121.203 7,764,553 8,302,406 3.3 470,938 5.37
14,600,000 U S Treasury Bond 6.625 2/15/2027 118.281 16,648,648 17,269,026 6.9 967,250 5.36
2,509,377 U S Treasury Inflation
Indexed Note 3.625 4/15/2028 97 2,452,411 2,434,096 1 90,965 3.8
2,225,000 U S Treasury Note 7.875 11/15/2004 115.859 2,597,596 2,577,863 1 175,219 4.75
2,950,000 U S Treasury Note 6.625 5/15/2007 112.453 3,342,723 3,317,364 1.3 195,438 4.8
---------- ---------- ---- ---------
Total U S Treasury 48,754,828 50,762,160 20.2 3,016,559
U S Treasury
Zero Coupon
9,125,000 U S Tsy Strip 0 5/15/2003 81.588 6,662,071 7,444,905 3 0 4.71
U S Tsy Strip 0 5/15/2007 66.684 5,900,289 6,384,993 2.5 0 4.9
---------- ---------- ---- ---
Total U S Treasury Zero Coupon 12,562,360 13,829,898 5.5 0
U S Agency
7,500,000 FHLMC Reference Note 5.125 10/15/2008 99.047 7,332,450 7,428,525 3 384,375 5.25
1,425,000 Federal National Mtg
Assoc Deb 7.875 2/24/2005 113.453 1,624,013 1,616,705 0.6 112,219 5.28
2,500,000 Federal National Mtg
Assoc Benchmark 6 5/15/2008 105.562 2,704,800 2,639,050 1.1 150,000 5.24
1,200,017 Guaranteed Export Trust
Nts Ser 95-A 6.28 6/15/2000-04 102.47 1,200,018 1,229,658 0.5 75,361 4.51
776,486 Guaranteed Export Trust
Nts Ser 95-B 6.13 6/15/2000-04 102.47 776,486 795,665 0.3 47,599 5.19
---------- ---------- ---- ---------
Total U S Agency 13,637,766 13,709,604 5.5 769,553
U S Agency Mortgage
719,207 Fed Home Ln Mtg Gold
PC# A01588 9 6/01/2017 105.403 773,935 758,066 0.3 64,729 6.76
2,035,000 FNMA (GNMA) REMIC
G93-26-PJ PAC 6.5 2/25/2004-21 101.375 1,916,716 2,062,981 0.8 132,275 6.16
598,599 Fed Natl Mtg Assoc
FHA-VA PT# 3218 7.75 9/01/2008 102.445 600,470 613,235 0.2 46,391 6.23
5,075,000 Fed Natl Mtg Assoc
(Feb) TBA 6 2/11/2029 98.563 5,021,078 5,002,047 2 304,500 6.1
10,125,000 Fed Natl Mtg Assoc
(Jan) TBA 6 1/14/2029 98.563 9,974,254 9,979,453 4 607,500 6.1
800,000 FNMA Dwarf 15 Yr
(Feb) TBA 6 2/18/2014 100.156 801,125 801,250 0.3 48,000 5.98
1,699,630 Fed Natl Mtg Assoc
20 Yr PT# 303888 7.5 5/01/2016 103.237 1,730,701 1,754,647 0.7 127,472 6.68
2,075,834 FNMA Dwarf 15 Yr # 313839 6.5 11/01/2012 101.406 2,103,080 2,105,020 0.8 134,929 6.34
4,917,196 FNMA Dwarf 15 Yr # 313958 6.5 1/01/2013 101.406 4,993,644 4,986,333 2 319,618 6.35
</TABLE>
38
<PAGE>
<TABLE>
<CAPTION>
Shares/ Market Total % Total %
Par Value Security Coupon Maturity Price Book Value Market Market Income Yield
--------- -------- ------ -------- ----- ---------- ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7,953,347 Fed Natl Mtg Assoc PT# 323422 6.5 11/01/2028 100.656 7,954,590 8,005,521 3.2 516,968 6.45
726,279 Fed Natl Mtg Assoc PT# 398197 6.5 1/01/2028 100.656 731,273 731,044 0.3 47,208 6.39
1,001,022 Fed Natl Mtg Assoc PT# 433686 6.5 11/01/2028 100.656 1,007,905 1,007,590 0.4 65,066 6.4
989,636 Fed Natl Mtg Assoc PT# 433694 6.5 11/01/2028 100.656 996,440 996,129 0.4 64,326 6.4
3,440,260 Fed Natl Mtg Assoc PT# 434908 6.5 9/01/2028 100.656 3,440,798 3,462,828 1.4 223,617 6.45
1,002,585 Fed Natl Mtg Assoc PT# 440698 6.5 11/01/2028 100.656 1,009,479 1,009,163 0.4 65,168 6.45
1,009,068 Fed Natl Mtg Assoc PT# 440718 6.5 11/01/2028 100.656 1,016,006 1,015,688 0.4 65,589 6.45
1,003,174 Fed Natl Mtg Assoc PT# 444478 6.5 10/01/2028 100.656 1,010,071 1,009,755 0.4 65,206 6.4
1,000,821 Fed Natl Mtg Assoc PT# 452026 6.5 11/01/2028 100.656 1,007,702 1,007,386 0.4 65,053 6.45
995,095 Fed Natl Mtg Assoc PT# 452037 6.5 11/01/2028 100.656 1,001,937 1,001,624 0.4 64,681 6.45
767,606 GNMA Midget 15 YR # 389593 6.5 7/15/2009 102 719,871 782,959 0.3 49,894 5.94
1,516,936 GNMA Midget 15 Yr # 389922 7.5 6/15/2009 103.031 1,548,461 1,562,915 0.6 113,770 6.38
681,368 GNMA Midget 15 Yr # 780303 6.5 2/15/2009 101.822 686,479 693,783 0.3 44,289 6.25
1,530,802 GNMA Midget 15 Yr # 780462 7.5 6/15/2009 103.062 1,559,027 1,577,676 0.6 114,810 6.31
1,516,942 GNMA Midget 15 Yr # 780316 6.5 7/15/2009 101.822 1,529,742 1,544,581 0.6 98,601 6.26
1,250,055 GNMA Midget 15 Yr # 780419 7.5 12/15/2009 103.031 1,273,396 1,287,944 0.5 93,754 6.38
583,857 Govt Nat[ Mtge Assoc Mod PT# 780058 7 1/15/2025 102.343 527,023 597,537 0.2 40,870 6.81
9,303,521 Govt Natl Mtge Assoc Mod PT# 780896 7 11/15/2028 102.312 9,501,948 9,518,619 3.8 651,247 6.82
6,435,000 Govt Natl Mtge Assoc Mod PT# 780912 6.5 11/15/2028 101 6,460,137 6,499,350 2.6 418,275 6.42
----------- ----------- ---- ---------
Total U S Agency Mortgage 70,897,286 71,375,126 28.5 4,653,809
Total U S Government 145,852,240 149,676,788 59.7 8,439,921
Yankee
2,600,000 Junta De Andalucia Note 6.75 10/15/2017 107.287 2,590,120 2,789,462 1.1 175,500 6.09
2,500,000 Hellenic Republic of Greece
Sr Note 6.95 3/04/2008 108.251 2,622,875 2,706,263 1.1 173,750 5.78
1,350,000 Province Of Manitoba Note 5.5 10/01/2008 101.12 1,341,387 1,365,120 0.5 74,250 5.35
----------- ----------- ---- ---------
Total Yankee 6,554,382 6,860,845 2.7 423,500
U S Corporate
Bank
1,225,000 Advanta Master Trust 1996-A Al 6 11/15/2003-05 101.437 1,223,086 1,242,603 0.5 73,500 5.66
1,925,000 Capital One Bank Sr Note 6.15 6/01/2001 98.516 1,930,429 1,896,433 0.8 118,388 6.82
5,000,000 Chase Manhattan Master
Trust 97-2 A 6.3 8/15/2000 101.468 4,998,438 5,073,400 2 315,000 5.41
5,200,000 MBNA Master Credit Card
Tr 11 1998-J 5.25 10/15/2003 99.156 5,189,236 5,156,128 2.1 273,000 5.45
3,100,000 MBNA Corp MT Note 6.12 8/13/2001 98.965 3,122,785 3,067,915 1.2 189,720 6.55
1,225,000 Prime Credit Card Master
Tr 1996-IA 6.7 5/15/2001 102.718 1,221,842 1,258,296 0.5 82,075 5.46
----------- ----------- ---- ---------
Total Bank 17,685,815 17,694,774 7.1 1,051,683
Finance
2,450,000 AT&T Capital Corp 7.5 11/15/2000 101.478 2,451,274 2,486,211 1 183,750 6.64
2,250,000 Associates Corp of N A Sr Note 5.6 1/15/2001 100.389 2,137,860 2,258,753 0.9 126,000 5.39
2,100,000 Associates Corp NA Note 6.75 7/15/2001 103.088 2,081,919 2,164,848 0.9 141,750 5.43
2,425,000 Discover Card Master Trust
1998-7 A 5.6 11/15/2003-03 100.438 2,423,484 2,435,609 1 135,800 5.49
1,925,000 General Electric Cap Corp
MT Note 6.15 11/05/2001 102.628 1,951,642 1,975,589 0.8 118,388 5.14
2,500,000 Household Finance Co MT Note 5.875 9/25/2004 100.107 2,500,000 2,502,675 1 146,875 5.85
2,500,000 LA County CA Taxable (MBIA)
Ser 94-D 6.73 6/30/2004 105.576 2,500,000 2,639,400 1.1 168,250 5.54
1,125,000 NJ Econ Dev Authority (MBIA) 7.425 2/15/2029 114.639 1,276,583 1,289,689 0.5 83,531 6.33
</TABLE>
39
<PAGE>
<TABLE>
<CAPTION>
Shares/ Market Total % Total %
Par Value Security Coupon Maturity Price Book Value Market Market Income Yield
--------- -------- ------ -------- ----- ---------- ------ ------ ------ -----
<C> <S> <C> <C> <C> <C> <C> <C> <C> <C>
1,125,000 NJ Econ Dev Authority (MBIA) 7.425 2/15/2029 114.639 1,276,583 1,289,689 0.5 83,531 6.33
2,500,000 Norwest Financial Inc Note 6.1 10/01/2000 101.142 2,494,600 2,528,550 1 152,500 5.4
5,100,000 Pacificorp Aust AMBAC 144A Note 6.15 1/15/2008 102.786 5,081,589 5,242,086 2.1 313,650 5.75
2,011,530 Railcar Leasing 1997-1 All 144A SEQ 6.75 7/15/2002-06 103.219 1,983,086 2,076,278 0.8 135,778 5.73
700,000 Sears Credit Acct Master Tr ll 95-2 8.1 6/15/2000-04 102.562 699,016 717,934 0.3 56,700 6.23
2,600,000 Sears Credit Acct Master tr 98-2A 5.25 12/15/2003-04 98.75 2,575,467 2,567,500 1 136,500 5.54
1,275,000 Sears Credit Acct Master Tr ll 97-1 6.2 7/15/2002-07 101.687 1,263,924 1,296,509 0.5 79,050 5.67
----------- ---------- ---- ---------
Total Finance 31,420,443 32,181,630 12.8 1,978,522
Mortgage
2,225,000 CS First Boston Mtg Sec 97-C2 A2 SEQ 6.52 7/17/2005-07 103.219 2,235,777 2,296,618 0.9 145,070 5.92
1,656,288 DMARC Commercial Mtge 98-Cl A1 6.22 9/15/2003-07 101.313 1,663,643 1,678,035 0.7 103,021 5.91
SEQ
1,192,238 GMAC Comm Mtge Corp 97-C2 A1 SEQ 6.451 12/15/2003-04 102.563 1,198,200 1,222,793 0.5 76,911 5.85
3,726,412 GMAC Comm Mtge Corp 98-Cl A1 SEQ 6.411 11/15/2003-07 102.298 3,760,774 3,812,026 1.5 238,900 5.86
1,204,378 Lehman Commercial Mtge 98-C1 A1 SEQ 6.33 11/18/2002-04 101.781 1,210,753 1,225,832 0.5 76,237 5.81
1,225,000 Lehman Commercial Mtge 98-C4 A1 A 5.87 8/15/2003-06 100.198 1,231,201 1,227,419 0.5 71,908 5.82
SEQ
1,804,919 Pru Home Mtg Series 93-45 A-2 TAC 6.75 11/25/2001-08 100.062 1,788,351 1,806,039 0.7 121,832 6.72
1,312,743 Pru Home Mtg Series 94-15 A-7 6.8 5/25/2001-24 100.625 1,309,256 1,320,948 0.5 89,267 6.13
2,434,253 Lehman Commercial Mtge 97-LLI A1 6.79 6/12/2002-04 103.5 2,468,209 2,519,452 1 165,286 5.66
SEQ ----------- ---------- ---- ---------
Total Mortgage 16,866,163 17,109,163 6.8 1,088,432
Industrial
3,000,000 Cargill, Inc. 144A Senior Note 7.375 10/01/2025 106.25 2,983,800 3,187,500 1.3 221,250 6.86
2,944,000 Chevron Corp Prof Sharing Amort Nt 8.11 12/01/2001-04 108.294 3,157,164 3,188,175 1.3 238,758 5.02
2,750,000 Coca-Cola Enterprise Deb 5.75 11/01/2008 98.207 2,742,548 2,700,693 1.1 158,125 5.99
1,350,000 News America Holdings Note 6.625 1/09/2008 102.902 1,348,286 1,389,177 0.6 89,438 6.2
850,000 News America, Inc Deb 7.25 5/18/2018 102.168 845,903 868,428 0.3 61,625 7.04
575,000 News America, Inc Deb 7.125 4/08/2028 99.776 556,157 573,712 0.2 40,969 7.14
----------- ---------- ---- ---------
Total Industrial 11,633,857 11,907,685 4.7 810,165
Electric Utility
2,175,000 PG&E-1 Rate Reduction Certs A-6 6.32 9/25/2003-05 102.895 2,232,724 2,237,955 0.9 137,460 5.61
1,400,000 PG&E-1 Rate Reduction Certs A-7 6.42 9/25/2005-08 103.843 1,421,000 1,453,802 0.6 89,880 5.72
2,375,000 SDE-1 Rate Reduction Certs A-6 6.31 9/25/2008 103.312 2,469,907 2,453,660 1 149,863 5.86
----------- ---------- ---- ---------
Total Electric Utility 6,123,631 6,145,417 2.5 377,203
Telephone
2,700,000 U.S. West Capital Funding Bond 6.125 7/15/2002 102.085 2,796,633 2,756,295 1.1 165,375 5.47
2,700,000 Worldcom, Inc Sr Note 6.125 8/15/2001 101.598 2,697,192 2,743,146 1.1 165,375 5.46
----------- ---------- ---- ---------
Total Telephone 5,493,825 5,499,441 2.2 330,750
Total U S Corporate 89,223,734 90,538,111 36.1 5,636,753
----------- ---------- ---- ---------
TOTAL BONDS 241,630,356 247,075,744 98.5 14,500,175 5.76
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
Shares/ Market Total % Total %
Par Value Security Coupon Maturity Price Book Value Market Market Income Yield
--------- -------- ------ -------- ----- ---------- ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHORT TERM OBLIGATIONS
8,000,000 American Express Credit Corp IBN 5.8 1/06/1999 100 8,000,000 8,000,000 3.2 470,448 5.88
9,566,522 State Street Bank Govt STIF 100 9,566,523 9,566,523 3.8 516,009 5.39
---------- ---------- -------
TOTAL SHORT TERM OBLIGATIONS 17,566,523 17,566,523 7 986,457 5.62
ACCOUNT SUMMARY
Total Securities 259,196,879 264,642,267 105.5 15,486,631
Cash -16,503,847 -16,503,847 -6.6
Income Accruals 2623905 2,623,905 1
------- --------- -
Total Assets 245,316,937 250,762,325 100 15,486,631
*THE PORTFOLIO YIELD IS THE AVERAGE OF YIELD TO MATURITY ON BONDS AND
BOND EQUIVALENT YIELD TO MATURITY ON SHORT TERM OBLIGATIONS ADJUSTED FOR TRADE CASH.
THE CURRENT YIELD ON THE PORTFOLIO IS 5.90%,
THE YIELD FIGURES FOR BONDS ARE YIELDS TO MATURITY.
THE YIELD FIGURES FOR SHORT-TERM OBLIGATIONS ARE BOND-EQUIVALENT YIELDS TO MATURITY.
NUMBERS MAY NOT ADD TO TOTALS DUE TO ROUNDING.
</TABLE>
41
<PAGE>
EXHIBIT 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference of our reports dated May 24, 1999 on the Champion International
Corporation Savings Plan #077 and the Champion International Corporation Savings
Plan for Hourly Employees #158 included in this Form 11-K into the Company's
previously filed Registration Statement on Form S-8 (Registration No. 333-
34069).
/s/ Arthur Andersen LLP
Stamford, CT
June 21, 1999
