<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
ALLIANCE
INTERMEDIATE
ALLIANCE GOVERNMENT
MONEY MARKET SECURITIES
PORTFOLIO PORTFOLIO
----------------- ----------------
<S> <C> <C>
ASSETS:
Investments at value (Notes 1 and 4) ........................ $1,146,034,774 $227,443,889
Cash ........................................................ 20,072,341 153,468
Receivable for securities sold .............................. -- 13,353,423
Collateral held for securities loaned (Note 1) .............. -- 23,566,820
Receivable from Separate Accounts for Trust shares sold ..... 6,787,425 327,976
Dividends, interest and other receivables ................... 6,157,701 1,980,819
-------------- ------------
Total assets .............................................. 1,179,052,241 266,826,395
-------------- ------------
LIABILITIES:
Options written at value (Premiums received: Alliance
Common Stock Portfolio--$147,756,325)
(Notes 1 and 4) ............................................ -- --
Payable to custodian ........................................ -- --
Payable for securities purchased ............................ 19,900,639 37,722,957
Payable for collateral received on securities loaned ........ -- 23,566,820
Payable to Separate Accounts for Trust shares redeemed ...... 7,001,970 136,753
Unrealized depreciation of forward currency contracts
(Notes 1 and 4) ............................................ -- --
Distribution fees payable ................................... 84,310 9,272
Investment advisory fees payable ............................ 355,160 92,282
Trustees' fees payable ...................................... 36,054 7,479
Accrued expenses ............................................ 34,388 12,144
-------------- ------------
Total liabilities ......................................... 27,412,521 61,547,707
-------------- ------------
NET ASSETS .................................................. $1,151,639,720 $205,278,688
============== ============
Investments at cost ......................................... $1,146,367,252 $230,138,358
============== ============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ............................................ $1,125,921,125 $211,673,830
Accumulated undistributed (overdistributed) net
investment income ......................................... 26,046,025 4,912,980
Accumulated undistributed net realized gain (loss) ......... 5,048 (8,613,653)
Unrealized appreciation/depreciation on investments
and foreign currency denominated assets and
liabilities ............................................... (332,478) (2,694,469)
-------------- ------------
NET ASSETS .................................................. $1,151,639,720 $205,278,688
============== ============
CLASS IA SHARES:
Net Assets .................................................. $ 785,055,333 $163,877,441
============== ============
Shares outstanding (Note 5) ................................. 75,070,487 17,112,177
============== ============
Net asset value, offering and redemption price per share
(Note 1) ................................................... $ 10.46 $ 9.58
============== ============
CLASS IB SHARES:
Net Assets .................................................. $ 366,584,387 $ 41,401,247
============== ============
Shares outstanding (Note 5) ................................. 35,158,340 4,334,334
============== ============
Net asset value, offering and redemption price per share
(Note 1) ................................................... $ 10.43 $ 9.55
============== ============
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE GROWTH AND
QUALITY BOND HIGH YIELD INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
---------------- --------------- -------------------
<S> <C> <C> <C>
ASSETS:
Investments at value (Notes 1 and 4) ........................ $ 341,723,925 $ 574,873,989 $ 1,297,030,100
Cash ........................................................ 135,847 1,190,159 756,839
Receivable for securities sold .............................. 21,347,551 26,018,148 5,731,794
Collateral held for securities loaned (Note 1) .............. 19,826,510 -- 37,512,306
Receivable from Separate Accounts for Trust shares sold ..... 617,418 569,610 4,163,892
Dividends, interest and other receivables ................... 3,615,643 15,958,189 2,069,688
------------- ------------- ---------------
Total assets .............................................. 387,266,894 618,610,095 1,347,264,619
------------- ------------- ---------------
LIABILITIES:
Options written at value (Premiums received: Alliance
Common Stock Portfolio--$147,756,325)
(Notes 1 and 4) ............................................ -- -- --
Payable to custodian ........................................ -- -- --
Payable for securities purchased ............................ 26,543,849 15,792,590 1,427,947
Payable for collateral received on securities loaned ........ 19,826,510 -- 37,512,306
Payable to Separate Accounts for Trust shares redeemed ...... 88,439 242,712 931,081
Unrealized depreciation of forward currency contracts
(Notes 1 and 4) ............................................ -- -- --
Distribution fees payable ................................... 38 49,942 39,662
Investment advisory fees payable ............................ 159,490 341,460 611,908
Trustees' fees payable ...................................... 8,449 13,298 14,159
Accrued expenses ............................................ 15,317 47,400 61,696
------------- ------------- ---------------
Total liabilities ......................................... 46,642,092 16,487,402 40,598,759
------------- ------------- ---------------
NET ASSETS .................................................. $ 340,624,802 $ 602,122,693 $ 1,306,665,860
============= ============= ===============
Investments at cost ......................................... $ 352,847,880 $ 644,025,543 $ 1,071,289,341
============= ============= ===============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ............................................ $ 345,930,349 $ 712,716,874 $ 1,003,276,238
Accumulated undistributed (overdistributed) net
investment income ......................................... 9,373,693 32,829,013 3,024,377
Accumulated undistributed net realized gain (loss) ......... (3,555,211) (74,271,640) 74,624,486
Unrealized appreciation/depreciation on investments
and foreign currency denominated assets and
liabilities ............................................... (11,124,029) (69,151,554) 225,740,759
------------- ------------- ---------------
NET ASSETS .................................................. $ 340,624,802 $ 602,122,693 $ 1,306,665,860
============= ============= ===============
CLASS IA SHARES:
Net Assets .................................................. $ 340,458,141 $ 379,653,083 $ 1,120,581,914
============= ============= ===============
Shares outstanding (Note 5) ................................. 35,459,959 44,355,831 57,823,776
============= ============= ===============
Net asset value, offering and redemption price per share
(Note 1) ................................................... $ 9.60 $ 8.56 $ 19.38
============= ============= ===============
CLASS IB SHARES:
Net Assets .................................................. $ 166,661 $ 222,469,610 $ 186,083,946
============= ============= ===============
Shares outstanding (Note 5) ................................. 17,375 26,083,014 9,633,725
============= ============= ===============
Net asset value, offering and redemption price per share
(Note 1) ................................................... $ 9.59 $ 8.53 $ 19.32
============= ============= ===============
</TABLE>
See Notes to Financial Statements.
1
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------- -------------------- ------------------- ---------------
<S> <C> <C> <C>
$ 2,338,177,042 $ 15,332,541,658 $ 1,587,091,315 $247,505,049
-- 1,318,469 905,876 --
12,736,904 33,740,339 38,312,429 6,286,225
24,126,740 587,676,922 97,668,284 15,492,734
5,364,871 9,956,545 22,524,853 3,613,378
2,073,578 15,603,010 2,498,875 608,084
--------------- ---------------- --------------- ------------
2,382,479,135 15,980,836,943 1,749,001,632 273,505,470
--------------- ---------------- --------------- ------------
-- 229,317,092 -- --
325,547 -- -- 133,936
4,171,349 136,632,394 26,279,973 2,009,928
24,126,740 587,676,922 97,668,284 15,492,734
2,645,681 5,927,875 1,989,602 53,109
-- 11,574 48,365 1,676
1,422 264,791 14,617 2,011
608,689 4,654,496 883,847 184,303
24,144 388,459 44,015 5,578
93,255 731,637 229,107 69,437
--------------- ---------------- --------------- ------------
31,996,827 965,605,240 127,157,810 17,952,712
--------------- ---------------- --------------- ------------
$ 2,350,482,308 $ 15,015,231,703 $ 1,621,843,822 $255,552,758
=============== ================ =============== ============
$ 1,611,203,547 $ 10,951,170,531 $ 1,169,846,949 $229,497,677
=============== ================ =============== ============
$ 1,591,417,336 $ 9,130,138,512 $ 1,142,836,365 $237,340,260
11,956,857 61,487,965 1,919,411 1,152,691
18,026,193 1,523,830,325 61,155,458 (890,188)
729,081,922 4,299,774,901 415,932,588 17,949,995
--------------- ---------------- --------------- ------------
$ 2,350,482,308 $ 15,015,231,703 $ 1,621,843,822 $255,552,758
=============== ================ =============== ============
$ 2,344,017,894 $ 13,779,458,509 $ 1,553,370,599 $246,169,843
=============== ================ =============== ============
83,714,592 497,660,174 71,084,924 20,891,889
=============== ================ =============== ============
$ 28.00 $ 27.69 $ 21.85 $ 11.78
=============== ================ =============== ============
$ 6,464,414 $ 1,235,773,194 $ 68,473,223 $ 9,382,915
=============== ================ =============== ============
231,327 44,791,924 3,144,579 798,541
=============== ================ =============== ============
$ 27.94 $ 27.59 $ 21.78 $ 11.75
=============== ================ =============== ============
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
AGGRESSIVE SMALL CAP CONSERVATIVE ALLIANCE GROWTH
STOCK GROWTH INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------- --------------- ----------------- ------------------- -------------------
<C> <C> <C> <C> <C>
$ 4,557,558,940 $ 310,805,082 $ 430,122,424 $ 2,008,861,993 $ 2,313,238,487
139,645 -- 1,146,457 5,888,863 3,480,078
14,003,444 8,926,337 1,552,870 9,959,025 20,324,636
296,817,450 -- 31,783,922 99,991,868 136,068,978
280,741 240,754 643,915 460,763 2,322,426
4,203,170 43,315 2,943,121 11,045,389 7,176,774
--------------- ------------- ------------- --------------- ---------------
4,873,003,390 320,015,488 468,192,709 2,136,207,901 2,482,611,379
--------------- ------------- ------------- --------------- ---------------
-- -- -- -- --
-- -- -- -- --
-- 4,719,610 1,957,187 14,274,527 20,038,394
296,817,450 -- 31,783,922 99,991,868 136,068,978
8,700,175 18,080,758 180,561 1,619,784 532,294
-- -- 9 2,947 10,349
42,581 23,963 12,359 1,616 29,104
2,180,455 232,131 182,409 729,037 1,047,908
181,218 2,296 15,198 95,599 57,302
267,663 31,742 18,141 155,719 159,518
--------------- ------------- ------------- --------------- ---------------
308,189,542 23,090,500 34,149,786 116,871,097 157,943,847
--------------- ------------- ------------- --------------- ---------------
$ 4,564,813,848 $ 296,924,988 $ 434,042,923 $ 2,019,336,804 $ 2,324,667,532
=============== ============= ============= =============== ===============
$ 3,898,175,119 $ 284,313,105 $ 401,511,837 $ 1,757,577,394 $ 1,943,710,493
=============== ============= ============= =============== ===============
$ 3,735,799,335 $ 308,481,245 $ 381,912,704 $ 1,591,333,036 $ 1,778,298,674
6,628,659 (644,183) 7,336,076 31,355,192 18,659,368
163,002,033 (37,404,051) 16,194,268 145,379,390 159,071,290
659,383,821 26,491,977 28,599,875 251,269,186 368,638,200
--------------- ------------- ------------- --------------- ---------------
$ 4,564,813,848 $ 296,924,988 $ 434,042,923 $ 2,019,336,804 $ 2,324,667,532
=============== ============= ============= =============== ===============
$ 4,369,333,860 $ 183,363,171 $ 376,637,429 $ 2,012,050,796 $ 2,189,694,688
=============== ============= ============= =============== ===============
113,857,497 15,581,896 29,358,167 102,040,920 99,599,485
=============== ============= ============= =============== ===============
$ 38.38 $ 11.77 $ 12.83 $ 19.72 $ 21.99
=============== ============= ============= =============== ===============
$ 195,479,988 $ 113,561,817 $ 57,405,494 $ 7,286,008 $ 134,972,844
=============== ============= ============= =============== ===============
5,120,081 9,690,278 4,485,730 369,976 6,157,984
=============== ============= ============= =============== ===============
$ 38.18 $ 11.72 $ 12.80 $ 19.69 $ 21.92
=============== ============= ============= =============== ===============
</TABLE>
2
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
ALLIANCE
INTERMEDIATE
ALLIANCE GOVERNMENT
MONEY MARKET SECURITIES
PORTFOLIO PORTFOLIO
-------------- ----------------
<S> <C> <C>
INVESTMENT INCOME:
Income* (Note 1):
Dividends (including $1,574,824 from affiliated
companies for the Alliance Aggressive
Stock Portfolio) ................................... $ -- $ --
Interest ............................................. 28,579,884 5,464,494
------------ ------------
Total income ....................................... 28,579,884 5,464,494
------------ ------------
Expenses (Notes 1, 2, and 3):
Investment advisory fee .............................. 1,917,659 495,161
Custodian fees ....................................... 50,793 35,192
Distribution fees--Class IB .......................... 468,253 46,473
Printing and mailing expenses ........................ 40,168 12,094
Professional fees .................................... 12,445 2,053
Trustees' fees ....................................... 5,494 906
Miscellaneous ........................................ 8,741 1,441
------------ ------------
Total expenses ..................................... 2,503,553 593,320
------------ ------------
NET INVESTMENT INCOME (LOSS) ........................... 26,076,331 4,871,174
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
(NOTES 1 AND 4):
Realized Gain (Loss):
On securities (including $(52,397,507) and
$8,532,994 from affiliated companies for the
Alliance Common Stock and Alliance
Aggressive Stock Portfolios, respectively) ......... 1,034 (2,828,157)
On options written ................................... -- --
On foreign currency transactions ..................... -- --
On futures contracts ................................. -- 50,470
------------ ------------
Realized gain (loss)--net ............................. 1,034 (2,777,687)
------------ ------------
Change in Unrealized
Appreciation/Depreciation:
On securities ........................................ (1,024,502) (4,138,835)
On options written ................................... -- --
On foreign currency transactions ..................... -- --
On futures contracts ................................. -- (1,345)
------------ ------------
Unrealized appreciation/depreciation--net ............. (1,024,502) (4,140,180)
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)--NET ............... (1,023,468) (6,917,867)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS ............................................ $ 25,052,863 $ (2,046,693)
============ ============
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE GROWTH AND
QUALITY BOND HIGH YIELD INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
---------------- ---------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Income* (Note 1):
Dividends (including $1,574,824 from affiliated
companies for the Alliance Aggressive
Stock Portfolio) ................................... $ -- $ -- $ 6,163,393
Interest ............................................. 9,893,847 35,135,239 --
------------- ------------- ------------
Total income ....................................... 9,893,847 35,135,239 6,163,393
------------- ------------- ------------
Expenses (Notes 1, 2, and 3):
Investment advisory fee .............................. 866,362 1,812,944 3,011,962
Custodian fees ....................................... 23,698 39,583 45,444
Distribution fees--Class IB .......................... 214 270,722 183,476
Printing and mailing expenses ........................ 19,871 44,416 55,154
Professional fees .................................... 3,624 6,864 11,194
Trustees' fees ....................................... 1,600 3,030 4,942
Miscellaneous ........................................ 2,547 4,820 7,861
------------- ------------- ------------
Total expenses ..................................... 917,916 2,182,379 3,320,033
------------- ------------- ------------
NET INVESTMENT INCOME (LOSS) ........................... 8,975,931 32,952,860 2,843,360
------------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)
(NOTES 1 AND 4):
Realized Gain (Loss):
On securities (including $(52,397,507) and
$8,532,994 from affiliated companies for the
Alliance Common Stock and Alliance
Aggressive Stock Portfolios, respectively) ......... (3,272,575) (38,644,506) 66,826,677
On options written ................................... -- -- --
On foreign currency transactions ..................... 180,242 (21,010) --
On futures contracts ................................. -- -- --
------------- ------------- ------------
Realized gain (loss)--net ............................. (3,092,333) (38,665,516) 66,826,677
------------- ------------- ------------
Change in Unrealized
Appreciation/Depreciation:
On securities ........................................ (14,016,711) (4,861,908) 83,683,092
On options written ................................... -- -- --
On foreign currency transactions ..................... -- -- --
On futures contracts ................................. -- -- --
------------- ------------- ------------
Unrealized appreciation/depreciation--net ............. (14,016,711) (4,861,908) 83,683,092
------------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)--NET ............... (17,109,044) (43,527,424) 150,509,769
------------- ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS ............................................ $ (8,133,113) $ (10,574,564) $153,353,129
============= ============= ============
</TABLE>
- ----------
* Net of foreign taxes withheld on dividends of $728, $341,496, $970,777,
$265,431, $35,521, $207,606 and $483,277 for the Alliance Equity Index,
Alliance Common Stock, Alliance Global, Alliance International, Alliance
Conservative Investors, Alliance Balanced and Alliance Growth Investors
Portfolios, respectively.
See Notes to Financial Statements.
3
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------- ----------------- --------------- ---------------
<S> <C> <C> <C>
$ 13,418,034 $ 58,364,149 $ 9,473,636 $ 2,440,826
1,235,414 25,683,747 1,801,886 341,288
------------ -------------- ------------ -----------
14,653,448 84,047,896 11,275,522 2,782,114
------------ -------------- ------------ -----------
3,021,132 24,494,275 4,709,673 967,297
75,608 284,979 345,093 154,005
6,313 1,272,507 71,420 10,433
86,102 785,933 80,466 5,079
18,956 144,466 15,781 2,374
8,369 63,777 6,967 1,048
13,310 101,449 11,081 1,666
------------ -------------- ------------ -----------
3,229,790 27,147,386 5,240,481 1,141,902
------------ -------------- ------------ -----------
11,423,658 56,900,510 6,035,041 1,640,212
------------ -------------- ------------ -----------
2,166,607 1,167,152,754 27,162,012 (103,753)
-- 422,030,940 -- --
966 (171,738) (1,240,592) (359,883)
2,590,408 -- -- --
------------ -------------- ------------ -----------
4,757,981 1,589,011,956 25,921,420 (463,636)
------------ -------------- ------------ -----------
213,874,010 (50,654,582) 141,950,839 13,536,370
-- 194,425,681 -- --
(123) (35,701) 23,744 (415,518)
1,603,226 -- -- --
------------ -------------- ------------ -----------
215,477,113 143,735,398 141,974,583 13,120,852
------------ -------------- ------------ -----------
220,235,094 1,732,747,354 167,896,003 12,657,216
------------ -------------- ------------ -----------
$231,658,752 $1,789,647,864 $173,931,044 $14,297,428
============ ============== ============ ===========
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
AGGRESSIVE SMALL CAP CONSERVATIVE ALLIANCE GROWTH
STOCK GROWTH INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------- ---------------- -------------- --------------- ---------------
<C> <C> <C> <C> <C>
$ 15,461,397 $ 463,938 $ 675,313 $ 5,186,363 $ 7,830,778
3,725,619 330,250 7,817,622 26,027,700 17,802,494
------------ -------------- ------------ ------------- ------------
19,187,016 794,188 8,492,935 31,214,063 25,633,272
------------ -------------- ------------ ------------- ------------
11,666,294 1,235,940 971,973 3,984,058 5,433,305
94,768 45,458 64,727 174,166 231,297
212,971 128,474 57,184 7,468 140,083
328,009 18,760 15,111 127,170 112,391
50,422 3,496 4,362 21,683 23,030
22,260 1,543 1,926 9,572 10,167
35,408 2,456 3,063 15,228 16,171
------------ -------------- ------------ ------------- ------------
12,410,132 1,436,127 1,118,346 4,339,345 5,966,444
------------ -------------- ------------ ------------- ------------
6,776,884 (641,939) 7,374,589 26,874,718 19,666,828
------------ -------------- ------------ ------------- ------------
166,093,055 (14,797,314) 14,432,935 131,163,328 147,273,528
-- -- -- -- --
-- -- (162,485) (936,025) (1,054,449)
-- -- -- -- --
------------ -------------- ------------ ------------- ------------
166,093,055 (14,797,314) 14,270,450 130,227,303 146,219,079
------------ -------------- ------------ ------------- ------------
332,007,921 14,460,303 (5,034,452) (31,693,354) 55,110,494
-- -- -- -- --
-- -- (9,956) (100,251) (239,591)
-- -- -- -- --
------------ -------------- ------------ ------------- ------------
332,007,921 14,460,303 (5,044,408) (31,793,605) 54,870,903
------------ -------------- ------------ ------------- ------------
498,100,976 (337,011) 9,226,042 98,433,698 201,089,982
------------ -------------- ------------ ------------- ------------
$504,877,860 $ (978,950) $ 16,600,631 $ 125,308,416 $220,756,810
============ ============== ============ ============= ============
</TABLE>
4
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ALLIANCE
MONEY MARKET PORTFOLIO
-------------------------------------
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1999 1998
----------------- -------------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 26,076,331 $ 38,632,711
Realized gain (loss)--net ................................. 1,034 15,569
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net .............................. (1,024,502) 580,153
-------------- -----------------
Net increase (decrease) in net assets from operations ..... 25,052,863 39,228,433
-------------- -----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income ..................... -- (27,368,048)
Distributions from realized gains ........................ -- (21,660)
-------------- -----------------
Total Class IA dividends and distributions ................ -- (27,389,708)
-------------- -----------------
Class IB:
Dividends from net investment income ..................... -- (11,444,905)
Distributions from realized gains ........................ -- (9,300)
-------------- -----------------
Total Class IB dividends and distributions ................ -- (11,454,205)
-------------- -----------------
Decrease in net assets from dividends and
distributions ............................................ -- (38,843,913)
-------------- -----------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold .............................................. 840,003,626 1,395,774,350
Shares issued in reinvestment of dividends and
distributions ........................................... -- 27,389,708
Shares redeemed .......................................... (795,258,764) (1,150,845,557)
-------------- -----------------
Total Class IA transactions ............................... 44,744,862 272,318,501
-------------- -----------------
Class IB:
Shares sold .............................................. 185,808,956 412,735,045
Shares issued in reinvestment of dividends and
distributions ........................................... -- 11,454,205
Shares redeemed .......................................... (213,996,569) (160,498,113)
-------------- -----------------
Total Class IB transactions ............................... (28,187,613) 263,691,137
-------------- -----------------
Net increase in net assets derived from share
transactions ............................................. 16,557,249 536,009,638
-------------- -----------------
INCREASE (DECREASE) IN NET ASSETS .......................... 41,610,112 536,394,158
NET ASSETS, BEGINNING OF PERIOD ............................ 1,110,029,608 573,635,450
-------------- -----------------
NET ASSETS, END OF PERIOD* ................................. $1,151,639,720 $ 1,110,029,608
============== =================
<CAPTION>
ALLIANCE
INTERMEDIATE GOVERNMENT
SECURITIES PORTFOLIO
-------------------------------
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1999 1998
--------------- ---------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 4,871,174 $ 7,810,216
Realized gain (loss)--net ................................. (2,777,687) 2,997,540
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net .............................. (4,140,180) 108,806
------------- -------------
Net increase (decrease) in net assets from operations ..... (2,046,693) 10,916,562
------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income ..................... -- (6,948,505)
Distributions from realized gains ........................ -- --
------------- -------------
Total Class IA dividends and distributions ................ -- (6,948,505)
------------- -------------
Class IB:
Dividends from net investment income ..................... -- (839,019)
Distributions from realized gains ........................ -- --
------------- -------------
Total Class IB dividends and distributions ................ -- (839,019)
------------- -------------
Decrease in net assets from dividends and
distributions ............................................ -- (7,787,524)
------------- -------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold .............................................. 32,739,798 70,532,629
Shares issued in reinvestment of dividends and
distributions ........................................... -- 6,948,505
Shares redeemed .......................................... (20,622,259) (42,186,626)
------------- -------------
Total Class IA transactions ............................... 12,117,539 35,294,508
------------- -------------
Class IB:
Shares sold .............................................. 14,051,601 26,363,094
Shares issued in reinvestment of dividends and
distributions ........................................... -- 839,019
Shares redeemed .......................................... (3,124,925) (1,510,389)
------------- -------------
Total Class IB transactions ............................... 10,926,676 25,691,724
------------- -------------
Net increase in net assets derived from share
transactions ............................................. 23,044,215 60,986,232
------------- -------------
INCREASE (DECREASE) IN NET ASSETS .......................... 20,997,522 64,115,270
NET ASSETS, BEGINNING OF PERIOD ............................ 184,281,166 120,165,896
------------- -------------
NET ASSETS, END OF PERIOD* ................................. $ 205,278,688 $ 184,281,166
============= =============
</TABLE>
- ---------
* Including accumulated undistributed (overdistributed) net investment
income of $26,046,025 and $(30,306) for the Alliance Money Market
Portfolio; $4,912,980 and $41,806 for the Alliance Intermediate
Government Securities Portfolio; $9,373,693 and $397,762 for the Alliance
Quality Bond Portfolio; $32,829,013 and $(123,847) for the Alliance High
Yield Portfolio; $3,024,377 and $181,017 for the Alliance Growth and
Income Portfolio; $11,956,857 and $533,199 for the Alliance Equity Index
Portfolio, as of June 30, 1999 and December 31, 1998, respectively.
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
QUALITY BOND PORTFOLIO HIGH YIELD PORTFOLIO
- -------------------------------- ---------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
- --------------- ---------------- --------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
$ 8,975,931 $ 14,192,221 $ 32,952,860 $ 59,339,850
(3,092,333) 6,621,611 (38,665,516) (25,614,101)
(14,016,711) 759,535 (4,861,908) (71,913,643)
------------- ------------- ------------- ---------------
(8,133,113) 21,573,367 (10,574,564) (38,187,894)
------------- ------------- ------------- ---------------
-- (14,217,744) -- (42,986,540)
-- (6,441,066) -- (8,030,526)
------------- ------------- ------------- ---------------
-- (20,658,810) -- (51,017,066)
------------- ------------- ------------- ---------------
-- (256) -- (16,704,168)
-- (209) -- (3,915,248)
------------- ------------- ------------- ---------------
-- (465) -- (20,619,416)
------------- ------------- ------------- ---------------
-- (20,659,275) -- (71,636,482)
------------- ------------- ------------- ---------------
46,369,904 121,204,490 45,595,125 192,696,791
-- 20,658,810 -- 51,017,066
(20,202,626) (23,592,796) (64,762,849) (118,180,171)
------------- ------------- ------------- ---------------
26,167,278 118,270,504 (19,167,724) 125,533,686
------------- ------------- ------------- ---------------
275,216 10,000 29,091,400 160,113,817
-- 465 -- 20,619,416
(113,118) -- (9,576,838) (5,903,002)
------------- ------------- ------------- ---------------
162,098 10,465 19,514,562 174,830,231
------------- ------------- ------------- ---------------
26,329,376 118,280,969 346,838 300,363,917
------------- ------------- ------------- ---------------
18,196,263 119,195,061 (10,227,726) 190,539,541
322,428,539 203,233,478 612,350,419 421,810,878
------------- ------------- ------------- ---------------
$ 340,624,802 $ 322,428,539 $ 602,122,693 $ 612,350,419
============= ============= ============= ===============
<CAPTION>
ALLIANCE
GROWTH AND INCOME ALLIANCE
PORTFOLIO EQUITY INDEX PORTFOLIO
- ----------------------------------- ------------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
- ------------------ ---------------- ----------------- ------------------
(UNAUDITED) (UNAUDITED)
<C> <C> <C> <C>
$ 2,843,360 $ 2,787,302 $ 11,423,658 $ 16,011,288
66,826,677 80,187,460 4,757,981 13,814,552
83,683,092 69,192,430 215,477,113 292,227,685
-------------- ------------- -------------- --------------
153,353,129 152,167,192 231,658,752 322,053,525
-------------- ------------- -------------- --------------
-- (2,436,074) -- (15,462,444)
-- (70,415,789) -- (495,835)
-------------- ------------- -------------- --------------
-- (72,851,863) -- (15,958,279)
-------------- ------------- -------------- --------------
-- (162,340) -- (2,375)
-- (9,420,614) -- (115)
-------------- ------------- -------------- --------------
-- (9,582,954) -- (2,490)
-------------- ------------- -------------- --------------
-- (82,434,817) -- (15,960,769)
-------------- ------------- -------------- --------------
128,932,727 251,966,056 880,493,719 593,669,442
-- 72,851,863 -- 15,958,279
(18,946,143) (65,846,350) (457,573,568) (169,374,643)
-------------- ------------- -------------- --------------
109,986,584 258,971,569 422,920,151 440,253,078
-------------- ------------- -------------- --------------
45,872,313 75,779,471 6,915,642 289,964
-- 9,582,954 -- 2,490
(848,226) (3,520,202) (1,367,633) (23,916)
-------------- ------------- -------------- --------------
45,024,087 81,842,223 5,548,009 268,538
-------------- ------------- -------------- --------------
155,010,671 340,813,792 428,468,160 440,521,616
-------------- ------------- -------------- --------------
308,363,800 410,546,167 660,126,912 746,614,372
998,302,060 587,755,893 1,690,355,396 943,741,024
-------------- ------------- -------------- --------------
$1,306,665,860 $ 998,302,060 $2,350,482,308 $1,690,355,396
============== ============= ============== ==============
</TABLE>
6
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
ALLIANCE
COMMON STOCK PORTFOLIO
---------------------------------------
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1999 1998
------------------- -------------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) .............................. $ 56,900,510 $ 79,924,991
Realized gain (loss)--net ................................. 1,589,011,956 1,293,579,317
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net .............................. 143,735,398 1,484,721,400
--------------- ----------------
Net increase (decrease) in net assets from operations ..... 1,789,647,864 2,858,225,708
--------------- ----------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income ..................... -- (66,892,105)
Distributions from realized gains ........................ -- (1,453,774,524)
--------------- ----------------
Total Class IA dividends and distributions ................ -- (1,520,666,629)
--------------- ----------------
Class IB:
Dividends from net investment income ..................... -- (1,845,494)
Distributions from realized gains ........................ -- (96,324,343)
--------------- ----------------
Total Class IB dividends and distributions ................ -- (98,169,837)
--------------- ----------------
Decrease in net assets from dividends and
distributions ............................................ -- (1,618,836,466)
--------------- ----------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold .............................................. 453,100,723 1,061,850,530
Shares issued in reinvestment of dividends and
distributions ........................................... -- 1,520,666,629
Shares redeemed .......................................... (391,851,962) (1,054,408,083)
--------------- ----------------
Total Class IA transactions ............................... 61,248,761 1,528,109,076
--------------- ----------------
Class IB:
Shares sold .............................................. 276,795,429 475,955,734
Shares issued in reinvestment of dividends and
distributions ........................................... -- 98,169,837
Shares redeemed .......................................... (8,581,169) (6,276,804)
--------------- ----------------
Total Class IB transactions ............................... 268,214,260 567,848,767
--------------- ----------------
Net increase (decrease) in net assets derived from
share transactions ....................................... 329,463,021 2,095,957,843
--------------- ----------------
INCREASE (DECREASE) IN NET ASSETS .......................... 2,119,110,885 3,335,347,085
NET ASSETS, BEGINNING OF PERIOD ............................ 12,896,120,818 9,560,773,733
--------------- ----------------
NET ASSETS, END OF PERIOD* ................................. $15,015,231,703 $ 12,896,120,818
=============== ================
<CAPTION>
ALLIANCE
GLOBAL PORTFOLIO
------------------------------------
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1999 1998
----------------- ------------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) .............................. $ 6,035,041 $ 9,414,726
Realized gain (loss)--net ................................. 25,921,420 118,228,354
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net .............................. 141,974,583 124,534,839
-------------- --------------
Net increase (decrease) in net assets from operations ..... 173,931,044 252,177,919
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income ..................... -- (15,151,207)
Distributions from realized gains ........................ -- (86,201,793)
-------------- --------------
Total Class IA dividends and distributions ................ -- (101,353,000)
-------------- --------------
Class IB:
Dividends from net investment income ..................... -- (363,521)
Distributions from realized gains ........................ -- (2,973,624)
-------------- --------------
Total Class IB dividends and distributions ................ -- (3,337,145)
-------------- --------------
Decrease in net assets from dividends and
distributions ............................................ -- (104,690,145)
-------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold .............................................. 229,482,687 155,109,252
Shares issued in reinvestment of dividends and
distributions ........................................... -- 101,353,000
Shares redeemed .......................................... (203,594,925) (244,390,306)
-------------- --------------
Total Class IA transactions ............................... 25,887,762 12,071,946
-------------- --------------
Class IB:
Shares sold .............................................. 16,183,436 22,632,466
Shares issued in reinvestment of dividends and
distributions ........................................... -- 3,337,145
Shares redeemed .......................................... (2,361,193) (2,713,553)
-------------- --------------
Total Class IB transactions ............................... 13,822,243 23,256,058
-------------- --------------
Net increase (decrease) in net assets derived from
share transactions ....................................... 39,710,005 35,328,004
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS .......................... 213,641,049 182,815,778
NET ASSETS, BEGINNING OF PERIOD ............................ 1,408,202,773 1,225,386,995
-------------- --------------
NET ASSETS, END OF PERIOD* ................................. $1,621,843,822 $1,408,202,773
============== ==============
</TABLE>
- ---------
* Including accumulated undistributed (overdistributed) net investment
income of $61,487,965 and $4,587,455 for the Alliance Common Stock
Portfolio; $1,919,411 and $(4,115,630) for the Alliance Global Portfolio;
$1,152,691 and $(487,521) for the Alliance International Portfolio;
$6,628,659 and $(148,225) for the Alliance Aggressive Stock Portfolio;
$(644,183) and $(2,244) for the Alliance Small Cap Growth Portfolio;
$7,336,076 and $(38,513) for the Alliance Conservative Investors
Portfolio, as of June 30, 1999 and December 31, 1998, respectively.
See Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
INTERNATIONAL PORTFOLIO AGGRESSIVE STOCK PORTFOLIO
- ----------------------------------- -------------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
- ----------------- ----------------- ----------------- -------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
$ 1,640,212 $ 1,684,286 $ 6,776,884 $ 10,694,674
(463,636) 4,970,328 166,093,055 94,437,250
13,120,852 14,979,423 332,007,921 (90,382,441)
--------------- --------------- -------------- -----------------
14,297,428 21,634,037 504,877,860 14,749,483
--------------- --------------- -------------- -----------------
-- (3,728,549) -- (19,956,153)
-- (39,070) -- (209,908,935)
--------------- --------------- -------------- -----------------
-- (3,767,619) -- (229,865,088)
--------------- --------------- -------------- -----------------
-- (100,012) -- (496,396)
-- (1,254) -- (6,821,111)
--------------- --------------- -------------- -----------------
-- (101,266) -- (7,317,507)
--------------- --------------- -------------- -----------------
-- (3,868,885) -- (237,182,595)
--------------- --------------- -------------- -----------------
331,193,286 451,931,751 424,761,303 1,200,293,864
-- 3,767,619 -- 229,865,088
(303,588,828) (459,041,931) (886,686,634) (1,458,834,640)
--------------- --------------- -------------- -----------------
27,604,458 (3,342,561) (461,925,331) (28,675,688)
--------------- --------------- -------------- -----------------
5,486,532 6,597,093 37,117,586 85,624,198
-- 101,266 -- 7,317,507
(4,145,628) (2,708,158) (15,945,302) (4,401,173)
--------------- --------------- -------------- -----------------
1,340,904 3,990,201 21,172,284 88,540,532
--------------- --------------- -------------- -----------------
28,945,362 647,640 (440,753,047) 59,864,844
--------------- --------------- -------------- -----------------
43,242,790 18,412,792 64,124,813 (162,568,268)
212,309,968 193,897,176 4,500,689,035 4,663,257,303
--------------- --------------- -------------- -----------------
$ 255,552,758 $ 212,309,968 $4,564,813,848 $ 4,500,689,035
=============== =============== ============== =================
<CAPTION>
ALLIANCE ALLIANCE
SMALL CAP GROWTH CONSERVATIVE INVESTORS
PORTFOLIO PORTFOLIO
- ----------------------------------- --------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
- ----------------- ----------------- --------------- ----------------
(UNAUDITED) (UNAUDITED)
<C> <C> <C> <C>
$ (641,939) $ (12,012) $ 7,374,589 $ 13,590,507
(14,797,314) (21,147,657) 14,270,450 17,894,855
14,460,303 11,287,980 (5,044,408) 13,769,937
--------------- --------------- ------------- -------------
(978,950) (9,871,689) 16,600,631 45,255,299
--------------- --------------- ------------- -------------
-- (16,814) -- (12,787,640)
-- -- -- (18,882,918)
--------------- --------------- ------------- -------------
-- (16,814) -- (31,670,558)
--------------- --------------- ------------- -------------
-- -- -- (702,882)
-- -- -- (1,574,187)
--------------- --------------- ------------- -------------
-- -- -- (2,277,069)
--------------- --------------- ------------- -------------
-- (16,814) -- (33,947,627)
--------------- --------------- ------------- -------------
270,136,956 625,198,674 25,440,513 44,384,823
-- 16,814 -- 31,670,558
(284,972,444) (515,462,936) (19,070,839) (39,710,758)
--------------- --------------- ------------- -------------
(14,835,488) 109,752,552 6,369,674 36,344,623
--------------- --------------- ------------- -------------
14,786,739 72,962,781 23,557,066 25,242,172
-- -- -- 2,277,069
(12,661,658) (3,211,937) (578,487) (618,411)
--------------- --------------- ------------- -------------
2,125,081 69,750,844 22,978,579 26,900,830
--------------- --------------- ------------- -------------
(12,710,407) 179,503,396 29,348,253 63,245,453
--------------- --------------- ------------- -------------
(13,689,357) 169,614,893 45,948,884 74,553,125
310,614,345 140,999,452 388,094,039 313,540,914
--------------- --------------- ------------- -------------
$ 296,924,988 $ 310,614,345 $ 434,042,923 $ 388,094,039
=============== =============== ============= =============
</TABLE>
8
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Concluded)
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
BALANCED PORTFOLIO GROWTH INVESTORS PORTFOLIO
------------------------------------ ------------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
----------------- ------------------ ----------------- ------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income .............................. $ 26,874,718 $ 54,374,560 $ 19,666,828 $ 38,229,669
Realized gain--net ................................. 130,227,303 149,648,732 146,219,079 147,510,271
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net ....................... (31,793,605) 99,779,596 54,870,903 137,214,556
-------------- -------------- -------------- --------------
Net increase in net assets from operations ......... 125,308,416 303,802,888 220,756,810 322,954,496
-------------- -------------- -------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income .............. -- (48,802,014) -- (36,481,422)
Distributions from realized gains ................. -- (161,293,799) -- (156,501,489)
-------------- -------------- -------------- --------------
Total Class IA dividends and distributions ......... -- (210,095,813) -- (192,982,911)
-------------- -------------- -------------- --------------
Class IB:
Dividends from net investment income .............. -- (106) -- (1,186,181)
Distributions from realized gains ................. -- (872) -- (7,045,472)
-------------- -------------- -------------- --------------
Total Class IB dividends and distributions ......... -- (978) -- (8,231,653)
-------------- -------------- -------------- --------------
Decrease in net assets from dividends and
distributions ..................................... -- (210,096,791) -- (201,214,564)
-------------- -------------- -------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold ....................................... 40,830,726 90,787,180 79,523,483 120,550,111
Shares issued in reinvestment of dividends and
distributions .................................... -- 210,095,813 -- 192,982,911
Shares redeemed ................................... (90,299,342) (182,248,936) (62,419,270) (99,572,371)
-------------- -------------- -------------- --------------
Total Class IA transactions ........................ (49,468,616) 118,634,057 17,104,213 213,960,651
-------------- -------------- -------------- --------------
Class IB:
Shares sold ....................................... 7,503,830 10,000 33,529,829 50,028,647
Shares issued in reinvestment of dividends and
distributions .................................... -- 978 -- 8,231,653
Shares redeemed ................................... (446,487) -- (1,823,839) (4,979,079)
-------------- -------------- -------------- --------------
Total Class IB transactions ........................ 7,057,343 10,978 31,705,990 53,281,221
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets derived from
share transactions ................................ (42,411,273) 118,645,035 48,810,203 267,241,872
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS .............................. 82,897,143 212,351,132 269,567,013 388,981,804
NET ASSETS, BEGINNING OF PERIOD ..................... 1,936,439,661 1,724,088,529 2,055,100,519 1,666,118,715
-------------- -------------- -------------- --------------
NET ASSETS, END OF PERIOD* .......................... $2,019,336,804 $1,936,439,661 $2,324,667,532 $2,055,100,519
============== ============== ============== ==============
</TABLE>
- ---------
* Including accumulated undistributed (overdistributed) net investment
income of $31,355,192 and $4,480,474 for the Alliance Balanced Portfolio;
$18,659,368 and $(1,007,460) for the Alliance Growth Investors Portfolio,
as of June 30, 1999 and December 31, 1998, respectively.
See Notes to Financial Statements.
9
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANK NOTES (2.2%)
FCC National Bank
Due 09/30/99 ................................... $25,000,000 $ 24,997,407 5.24%
------------
CERTIFICATES OF DEPOSIT
Bayerische Landesbank, New York
Due 03/21/00 ................................... 15,000,000 14,934,441 5.15
Chase Manhattan Corp.
Due 09/08/99 ................................... 45,000,000 44,974,089 5.24
Deutsche Bank
Due 02/22/00 ................................... 15,000,000 14,953,130 5.15
First National Bank Chicago
Due 06/14/00 ................................... 25,000,000 25,024,280 5.65
First Tennessee Bank
Due 07/30/99 ................................... 50,000,000 50,001,900 5.17
Morgan Guaranty Trust Co., New York
Due 10/15/99 ................................... 35,000,000 34,949,257 5.04
Nordeutsche Landesbank
Due 05/18/00 ................................... 20,000,000 19,956,474 5.30
Rabobank Nederland N.V.:
Due 02/08/00 ................................... 25,000,000 24,915,105 5.18
Due 03/28/00 ................................... 3,500,000 3,490,453 5.28
State Street Bank & Trust Co.
Due 09/13/99 ................................... 20,000,000 19,985,864 4.95
Toronto Dominion Bank:
Due 02/14/00 ................................... 20,000,000 19,934,184 5.20
Due 03/06/00 ................................... 15,000,000 14,971,919 5.33
UBS AG Stamford CT
Due 05/22/00 ................................... 26,000,000 25,945,288 5.60
Wachovia Bank and Trust Co. NA
Due 02/23/00 ................................... 25,000,000 24,922,170 5.13
------------
TOTAL CERTIFICATES OF DEPOSIT (29.4%) ......... 338,958,554
------------
COMMERCIAL PAPER
Allianz of America Financial, Inc.
Due 09/20/99+ .................................. 14,900,000 14,729,023 5.23
Associates Corp. of North America
Due 09/15/99 ................................... 25,000,000 24,730,833 5.26
BellSouth Corp.
Due 07/28/99 ................................... 50,000,000 49,808,750 5.17
Colgate Palmolive Co.
Due 07/01/99+ .................................. 22,300,000 22,300,000 4.82
Dresdner US Finance, Inc.
Due 07/30/99 ................................... 50,000,000 49,792,565 5.12
Exxon Financial Services
Due 07/15/99 ................................... 16,106,000 16,073,743 5.23
Ford Motor Credit Co.
Due 09/30/99 ................................... 50,000,000 49,342,775 5.26
General Electric Capital Corp.
Due 09/30/99 ................................... 26,000,000 25,658,243 5.29
General Motors Acceptance Corp.
Due 09/30/99 ................................... 50,000,000 49,340,250 5.25
John Hancock Capital Corp.:
Due 07/27/99 ................................... 29,300,000 29,192,076 5.19
Due 07/28/99 ................................... 20,698,000 20,618,830 5.19
</TABLE>
10
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1990 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Merrill Lynch & Co., Inc.
Due 07/30/99 ......................................... $50,000,000 $ 49,794,580 5.12%
Morgan Stanley Group, Inc.
Due 07/01/99 ......................................... 41,100,000 41,100,000 5.75
Norwest Financial, Inc.
Due 07/30/99 ......................................... 20,000,000 19,917,026 5.13
Sara Lee Corp.
Due 07/01/99 ......................................... 50,000,000 50,000,000 4.80
Southern Co.
Due 07/30/99 ......................................... 27,000,000 26,889,073 5.17
Teachers Insurance and Annuity Association
Due 07/30/99 ......................................... 50,000,000 49,794,580 5.22
--------------
TOTAL COMMERCIAL PAPER (51.1%) ...................... 589,082,347
--------------
VARIABLE RATE SECURITIES
Asset Backed Capital Financial
Due 07/22/99(a)+ ..................................... 25,000,000 24,994,430 5.33
Federal Home Loan Bank
Due 08/12/99(a) ...................................... 25,000,000 25,004,428 5.33
National Westminster Bank
Due 04/17/00(a) ...................................... 40,000,000 39,981,780 4.88
Royal Bank of Canada, New York
Due 08/25/99(a) ...................................... 20,000,000 20,003,928 5.44
Sigma Finance:
Due 08/23/99(a)+ ..................................... 25,000,000 25,005,050 5.47
Due 06/29/00(a)+ ..................................... 13,000,000 12,999,031 5.32
Due 06/29/00(a)+ ..................................... 10,000,000 9,999,860 5.18
Student Loan Marketing Association
Due 11/09/99(a) ...................................... 35,000,000 35,007,959 5.64
--------------
TOTAL VARIABLE RATE SECURITIES (16.8%) .............. 192,996,466
--------------
TOTAL INVESTMENTS IN SHORT-TERM DEBT SECURITIES (99.5%)
(Amortized Cost $1,146,367,252)....................... 1,146,034,774
OTHER ASSETS
LESS LIABILITIES (0.5%) .............................. 5,604,946
--------------
NET ASSETS (100.0%) ................................... $1,151,639,720
==============
</TABLE>
- ----------
* Based on amortized cost at the close of business on June 30, 1999.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1999, these securities amounted to $110,027,394 or
9.6% of net assets.
(a) Coupon will fluctuate based upon an interest rate index. Stated due
date reflects final maturity of security.
See Notes to Financial Statements.
11
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
ASSET BACKED (12.6%)
Amresco Residential Securities
Mortgage Loan Trust
5.94%, 03/25/15 .................. $ 4,500,000 $ 4,446,585
Countrywide Home Equity
Loan Trust
5.083%, 10/15/24 ................. 2,587,333 2,577,630
Delta Funding Home Equity
Loan Trust
Series 1999-2, Class A1F
6.14%, 03/15/18 .................. 7,000,000 6,991,250
Green Tree Home Improvement
Loan Trust
6.25%, 08/15/29 .................. 5,000,000 4,942,200
The Money Store Home
Equity Trust
6.725%, 06/15/24 ................. 7,000,000 6,969,410
------------
25,927,075
------------
COLLATERALIZED MORTGAGE BACKED
SECURITIES (10.4%)
Allied Capital Commercial
Mortgage Trust
6.31%, 09/25/03+ ................. 2,664,193 2,651,298
Government Lease Trust
4.0%, 05/18/11 ................... 4,500,000 3,448,125
5.5%, 05/05/29 ................... 4,500,000 3,448,125
LB Commercial Conduit
Mortgage Trust
6.78%, 4/15/09 ................... 8,000,000 7,935,040
Morgan Stanley Capital I
Series 1998-XL2, Class A2
6.17%, 10/03/08 .................. 4,000,000 3,777,640
------------
21,260,228
------------
MORTGAGE RELATED (26.8%)
Federal Home Loan Mortgage
Corp. GOLD
9.5%, 01/01/20 ................... 4,756 5,063
Federal National Mortgage
Association:
7.5%, 08/01/13 ................... 6,906,174 7,016,859
6.0%, 12/01/13 ................... 12,944,333 12,502,259
6.0%, 01/01/14 ................... 389,501 376,199
6.0%, 02/01/14 ................... 42,393 40,945
6.0%, 03/01/14 ................... 1,968,225 1,901,006
6.0%, 04/01/14 ................... 1,681,039 1,623,628
6.0%, 05/01/14 ................... 1,591,938 1,537,571
6.0%, 06/01/14 ................... 1,974,651 1,907,213
6.0%, 07/01/14 ................... 216,200 208,816
6.5%, 04/01/28 ................... 938,797 908,035
6.5%, 07/01/28 ................... 932,742 902,178
6.5%, 03/01/29 ................... 6,129,257 5,928,414
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------
<S> <C> <C>
6.5%, 04/01/29 ................... $ 806,106 $ 779,691
6.5%, 06/01/29 ................... 2,794,252 2,702,690
15 Year TBA:
6.0%, 06/01/14 ................... 4,320,000 4,170,329
7.0%, 06/01/14 ................... 5,760,000 5,781,900
30 Year TBA
7.0%, 06/01/29 ................... 5,588,000 5,528,627
Providian Master Trust
5.29%, 01/15/09 .................. 1,000,000 999,115
Prudential Home Mortgage
Securities
7.415%, 01/25/24 ................. 101,912 101,849
------------
54,922,387
------------
U.S. GOVERNMENT & AGENCIES (51.0%)
Federal Farm Credit Bank
6.29%, 08/25/04 .................. 4,700,000 4,687,507
Federal Home Loan Bank
5.77%, 02/03/04 .................. 6,430,000 6,314,922
Federal Home Loan
Mortgage Corp.:
5.0%, 01/15/04 ................... 28,000,000 26,688,732
9.5%, 05/07/29 ................... 600,000 637,313
Tennessee Valley Authority
6.5%, 08/20/01 ................... 5,400,000 5,465,281
U.S. Treasury:
4.875% Note, 03/31/01 ............ 21,200,000 20,981,386
6.125% Note, 12/31/01 ............ 18,700,000 18,922,062
11.875% Bond, 11/15/03 ........... 6,300,000 7,745,062
5.25% Note, 05/15/04 ............. 4,000,000 3,930,000
6.625% Note, 05/15/07 ............ 9,000,000 9,374,067
------------
104,746,332
------------
TOTAL LONG-TERM DEBT SECURITIES (100.8%)
(Amortized Cost $209,550,491) 206,856,022
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Bank
4.6%, due 07/01/99 ............... 13,600,000 13,600,000
Federal Home Loan Mortgage
Corp.
4.81%, due 07/14/99 .............. 7,000,000 6,987,867
------------
TOTAL U.S. GOVERNMENT AGENCIES (10.0%) 20,587,867
------------
TOTAL SHORT-TERM DEBT SECURITIES (10.0%)
(Amortized Cost $20,587,867)....... 20,587,867
------------
TOTAL INVESTMENTS (110.8%)
(Amortized Cost $230,138,358)..... 227,443,889
OTHER ASSETS
LESS LIABILITIES (-10.8%) ........ (22,165,201)
------------
NET ASSETS (100.0%) ................ $205,278,688
============
</TABLE>
- ----------
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. This security may only be resold to qualified institutional
buyers. At June 30, 1999, this security amounted to $2,651,298 or 1.3% of
net assets.
See Notes to Financial Statements.
12
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE QUALITY BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
CONSUMER CYCLICALS (0.9%)
AUTOS & TRUCKS
Ford Motor Co.
6.375%, 02/01/29 ................... $ 3,500,000 $ 3,040,951
------------
CONSUMER NONCYCLICALS
MEDIA & CABLE
Comcast Cable
Communications, Inc.
6.2%, 11/15/08 ..................... 10,000,000 9,301,200
Cox Communications, Inc.
6.8%, 08/01/28 ..................... 11,025,000 9,848,522
Time Warner, Inc.
7.25%, 10/15/17 .................... 10,000,000 9,626,700
------------
TOTAL CONSUMER NONCYCLICALS (8.4%) 28,776,422
------------
CREDIT SENSITIVE
ASSET BACKED (5.5%)
Capital Auto Receivables Asset
Trust
Series 1999-1, Class A2
5.58%, 06/15/02 .................... 8,000,000 7,927,520
Carco Auto Loan Master Trust
Series 1998-1, Class A2
4.9825%, 06/15/05 .................. 5,100,000 5,072,103
Citibank Credit Card Master
Trust I Series 1999-2, Class A
5.875%, 03/10/11 ................... 6,150,000 5,757,938
------------
18,757,561
------------
FINANCIAL SERVICES (7.3%)
Household Netherlands B.V.
6.2%, 12/01/03 ..................... 5,500,000 5,379,770
Morgan Stanley Dean Witter & Co.
5.625%, 01/20/04 ................... 11,000,000 10,602,240
Prudential Insurance Corp.
8.3%, 07/01/25 ..................... 8,000,000 8,732,160
------------
24,714,170
------------
MORTGAGE RELATED (1.4%)
Prudential Securities Secured
Financing
Series 1999-NRF1, Class A2
6.48%, 01/15/09 .................... 5,000,000 4,828,150
------------
UTILITY--ELECTRIC (2.8%)
Dominion Resources Capital
Trust I
7.83%, 12/01/27 .................... 5,925,000 5,601,139
Southern Company Capital Trust I
8.19%, 02/01/37 .................... 3,950,000 3,978,322
------------
9,579,461
------------
UTILITY--TELEPHONE (0.9%)
TPSA Finance B.V.
7.75%, 12/10/08 .................... 3,200,000 3,120,000
------------
TOTAL CREDIT SENSITIVE (17.9%) ..... 60,999,342
------------
ENERGY (2.0%)
COAL & GAS PIPELINES
Williams Companies, Inc.
6.125%, 02/01/01 ................... 6,990,000 6,971,337
------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES
MORTGAGE RELATED
Federal Home Loan Mortgage
Corp. GOLD
7.0%, 09/01/11 ..................... $ 4,400,026 $ 4,422,225
Federal National Mortgage
Association:
7.0%, 05/01/12 ..................... 3,750,000 3,766,575
7.0%, 02/01/13 ..................... 3,524,621 3,542,402
7.0%, 05/01/26 ..................... 1,325,073 1,309,755
7.5%, 09/01/27 ..................... 3,499,999 3,539,686
7.0%, 01/01/28 ..................... 2,091,309 2,070,209
6.5%, 03/01/28 ..................... 1,233,095 1,192,689
6.5%, 09/01/28 ..................... 1,900,617 1,838,337
6.5%, 10/01/28 ..................... 969,387 937,622
8.0%, 11/01/28 ..................... 3,027,889 3,110,187
6.5%, 12/01/28 ..................... 5,225,357 5,054,132
8.0%, 12/01/28 ..................... 5,009,713 5,140,992
6.0%, 03/01/29 ..................... 14,085,621 13,244,965
7.5%, 04/01/29 ..................... 12,762,870 12,907,589
30 Year TBA
8.0%, 05/01/29 ..................... 3,250,325 3,334,697
Government National Mortgage
Association:
7.0%, 11/15/26 ..................... 8,350,316 8,251,532
7.0%, 07/15/27 ..................... 2,382,039 2,353,860
7.0%, 02/15/28 ..................... 7,566,545 7,477,033
6.5%, 03/15/28 ..................... 3,415,487 3,292,437
6.5%, 04/15/28 ..................... 2,686,258 2,589,480
6.5%, 05/15/28 ..................... 359,812 346,849
6.5%, 10/15/28 ..................... 15,931,931 15,357,952
7.0%, 12/15/28 ..................... 14,642,060 14,468,844
6.5%, 01/15/29 ..................... 9,857,794 9,502,647
------------
TOTAL U.S. GOVERNMENT AGENCIES (37.9%) 129,052,696
------------
U.S. GOVERNMENT
U.S. Treasury:
6.5% Note, 08/31/01 ................ 14,000,000 14,262,500
6.5% Note, 05/31/02 ................ 42,470,000 43,425,575
6.875% Note, 05/15/06 .............. 18,300,000 19,266,478
8.125% Bond, 08/15/19 .............. 6,450,000 7,790,374
6.125% Bond, 11/15/27 .............. 8,000,000 7,925,000
5.25% Bond, 02/15/29 ............... 6,700,000 6,013,250
------------
TOTAL U.S. GOVERNMENT (29.0%) 98,683,177
------------
TOTAL LONG-TERM DEBT SECURITIES (96.1%)
(Amortized Cost $338,647,880) ....... 327,523,925
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (4.2%)
Federal Home Loan Bank
4.6%, due 07/01/99 ................. 14,200,000 14,200,000
------------
TOTAL SHORT-TERM DEBT SECURITIES (4.2%)
(Amortized Cost $14,200,000) ........ 14,200,000
------------
TOTAL INVESTMENTS (100.3%)
(Amortized Cost $352,847,880)....... 341,723,925
OTHER ASSETS
LESS LIABILITIES (-0.3%) ........... (1,099,123)
------------
NET ASSETS (100.0%) .................. $340,624,802
============
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND
OTHER INVESTMENTS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.0%)
Pegasus Communications Corp.
(Class A) ............................. 3,384 $ 133,457
------------
TRUCKING, SHIPPING (0.0%)
Millenium SeaCarriers, Inc.--
Warrants (expire 07/15/05)* ........... 6,000 0
------------
TOTAL BUSINESS SERVICES (0.0%) 133,457
------------
CAPITAL GOODS (0.0%)
BUILDING & CONSTRUCTION
Capital Pacific Holdings, Inc.--
Warrants (expire 05/01/02)* ........... 11,850 5,925
------------
CONSUMER CYCLICALS
LEISURE RELATED (0.0%)
Discovery Zone--Warrants
(expire 08/01/07)*+ ................... 3,500 3
------------
RETAIL--GENERAL (0.0%)
FTD Corp.*+ ............................. 37,500 187,500
V2 Music Holdings--Warrants
(expire 04/15/08)*+ ................... 8,000 20,000
------------
207,500
------------
TOTAL CONSUMER CYCLICALS (0.0%) 207,503
------------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (0.0%)
Wright Medical Technology, Inc.--
Warrants (expire 06/30/03)* ........... 618 6
------------
SOAPS & TOILETRIES (0.0%)
Renaissance Cosmetics, Inc.--
Warrants (expire 08/15/01)* ........... 2,000 2
------------
TOTAL CONSUMER NONCYCLICALS (0.0%) 8
------------
TECHNOLOGY
ELECTRONICS (0.0%)
Interactive Systems Corp.--
Warrants (expire 08/01/03)*+ .......... 1,500 0
------------
TELECOMMUNICATIONS (0.2%)
DTI Holdings, Inc.--Warrants
(expire 03/01/08)* .................... 20,000 0
Knology Holdings, Inc.--
Warrants (expire 10/15/07)*+ .......... 15,000 37,500
Long Distance International,
Inc.--Warrants
(expire 04/13/08)* .................... 5,000 0
Optel, Inc.* ............................ 10,000 100,000
Orion Network Systems, Inc.--
Warrants (expire 01/15/07)* ........... 4,000 42,000
PathNet, Inc.--Warrants
(expire 04/15/08)* .................... 4,000 0
Primus Telecommunications--
Warrants (expire 08/01/04)* ........... 6,500 130,000
Splitrock Services, Inc.--
Warrants (expire 07/15/08)* ........... 10,000 700,000
Versatel Telecommunications--
Warrants (expire 05/15/08)* ........... 10,000 0
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
21st Century Telecom Group--
Warrants (expire 02/15/10)* ........... 4,000 $ 0
------------
1,009,500
------------
TOTAL TECHNOLOGY (0.2%) ............... 1,009,500
------------
TOTAL COMMON STOCKS AND
OTHER INVESTMENTS (0.2%)
(Cost $121,660)........................ 1,356,393
------------
PREFERRED STOCKS:
CONSUMER NONCYCLICALS (0.2%)
HOSPITAL SUPPLIES & SERVICES
Harborside Healthcare, Inc.
13.5%*(b) ............................. 2,209 1,082,410
------------
TECHNOLOGY
TELECOMMUNICATIONS (0.8%)
Nextel Communications, Inc.
(Series E)
11.125%*(b) ........................... 2,312 2,335,120
21st Century Telecom Group
13.75%*(b) ............................ 4,789 2,394,228
------------
TOTAL TECHNOLOGY (0.8%) ............... 4,729,348
------------
TOTAL PREFERRED STOCKS (1.0%)
(Cost $8,345,573)...................... 5,811,758
------------
PRINCIPAL
AMOUNT
------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
CHEMICALS (4.6%)
Aqua Chemicals, Inc.
11.25%, 07/01/08 ...................... $5,500,000 3,850,000
Brunner Mond Group PLC
11.0%, 07/15/08 ....................... 3,000,000 1,740,000
Equistar Chemicals LP
8.75%, 02/15/09+ ...................... 7,000,000 7,074,949
Geo Specialty Chemicals
10.125%, 08/01/08 ..................... 5,000,000 4,800,000
ZSC Specialty Chemicals PLC
11.0%, 07/01/09+ ...................... 10,000,000 10,087,500
------------
27,552,449
------------
CHEMICALS--SPECIALTY (1.7%)
Lyondell Chemical Co.
9.875%, 05/01/07+ ..................... 10,000,000 10,187,500
------------
METALS & MINING (2.2%)
Bulong Operations Property Ltd.
12.5%, 12/15/08+ ...................... 5,000,000 5,068,750
Murrin Murrin Holdings
9.375%, 08/31/07 ...................... 2,500,000 2,200,000
P&L Coal Holdings Corp.
(Series B)
9.625%, 05/15/08 ...................... 6,100,000 6,054,250
------------
13,323,000
------------
PAPER (2.0%)
Doman Industries Ltd.
8.75%, 03/15/04 ....................... 4,300,000 2,709,000
12.0%, 07/01/04+ ...................... 7,000,000 6,755,000
Pen Tab Industries, Inc. (Series B)
10.875%, 02/01/07 ..................... 3,500,000 2,975,000
------------
12,439,000
------------
TOTAL BASIC MATERIALS (10.5%) ......... 63,501,949
------------
</TABLE>
14
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (5.3%)
Filtronic Comtek PLC
10.0%, 12/01/05+ ................. $10,000,000 $ 9,900,000
GOSS Graphic Systems, Inc.
12.0%, 10/15/06(e) ............... 6,000,000 1,980,000
Marvel Enterprises, Inc.
12.0%, 06/15/09+ ................. 8,000,000 8,080,000
Radio One, Inc. (Series B)
7.0%, 05/15/04(c) ................ 5,000,000 5,150,000
Sullivan Graphics, Inc
12.75%, 08/01/05 ................. 5,000,000 5,150,000
Supercanal Holding SA
11.75%, 05/15/02+ ................ 1,738,812 1,738,812
----------
31,998,812
----------
PROFESSIONAL SERVICES (2.0%)
Employee Solutions, Inc.
(Series B)
10.0%, 10/15/04 .................. 3,250,000 1,945,938
Primark Corp.
9.25%, 12/15/08 .................. 6,000,000 5,775,000
T/SF Communications Corp.
(Series B)
10.375%, 11/01/07 ................ 4,000,000 4,000,000
----------
11,720,938
----------
TRUCKING, SHIPPING (2.9%)
Millenium SeaCarriers, Inc.
12.0%, 07/15/05(d) ............... 6,000,000 3,360,000
MTL, Inc. (Series B)
10.0%, 06/15/06 .................. 3,500,000 3,465,000
Pacer International, Inc.
11.75%, 06/01/07+ ................ 5,000,000 4,850,000
Stena Line AB
10.625%, 06/01/08 ................ 8,000,000 6,040,000
----------
17,715,000
----------
TOTAL BUSINESS SERVICES (10.2%) 61,434,750
----------
CAPITAL GOODS
BUILDING & CONSTRUCTION (0.7%)
MMI Products, Inc. (Series B)
11.25%, 04/15/07 ................. 4,000,000 4,100,000
----------
MACHINERY (0.8%)
Penhall International
12.0%, 08/01/06 .................. 5,000,000 5,050,000
----------
TOTAL CAPITAL GOODS (1.5%) ....... 9,150,000
----------
CONSUMER CYCLICALS
AIRLINES (0.7%)
Aircraft Service International
Group
11.0%, 08/15/05 .................. 4,000,000 4,125,000
Canadian Airlines Corp.
12.25%, 08/01/06 ................. 1,000,000 391,250
----------
4,516,250
----------
APPAREL, TEXTILE (0.4%)
NTEX, Inc.
11.5%, 06/01/06 .................. 3,000,000 2,550,000
----------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
AUTO RELATED (1.0%)
Avis Rent a Car, Inc.
11.0%, 05/01/09+ ................. $ 4,500,000 $ 4,561,875
Breed Technologies, Inc.
9.25%, 04/15/08 .................. 8,000,000 1,280,000
----------
5,841,875
----------
AUTOS & TRUCKS (0.9%)
Sonic Automotive, Inc. (Series B)
11.0%, 08/01/08 .................. 5,250,000 5,197,500
----------
HOUSEHOLD FURNITURE, APPLIANCES (0.8%)
Home Interiors & Gifts, Inc.
10.125%, 06/01/08 ................ 2,000,000 1,980,000
Sealy Mattress Co. (Series B)
9.875%, 12/15/07 ................. 2,750,000 2,705,313
----------
4,685,313
----------
LEISURE RELATED (2.1%)
Hedstrom Corp.
10.0%, 06/01/07 .................. 6,000,000 5,340,000
Jupiters Ltd.
8.5%, 03/01/06+ .................. 5,000,000 4,875,000
Silverleaf Resorts, Inc.
10.5%, 04/01/08 .................. 3,000,000 2,490,000
----------
12,705,000
----------
PHOTO & OPTICAL (0.9%)
Polaroid Corp.
11.5%, 02/15/06 .................. 5,000,000 5,300,000
----------
RETAIL--GENERAL (2.0%)
AAI.Fostergrant, Inc.
10.75%, 07/15/06 ................. 3,500,000 2,380,000
Just For Feet, Inc.
11.0%, 05/01/09+ ................. 8,500,000 5,482,500
V2 Music Holdings PLC
Zero Coupon, 04/15/08(a)(d)+ ..... 8,000,000 4,120,000
----------
11,982,500
----------
TOTAL CONSUMER CYCLICALS (8.8%) 52,778,438
----------
CONSUMER NONCYCLICALS
BEVERAGES (1.7%)
TM Group Holdings
11.0%, 05/15/08+ ................. 10,000,000 10,125,000
----------
CONTAINERS (3.2%)
Anchor Glass Corp.
11.25%, 04/01/05 ................. 4,000,000 4,060,000
Russell-Stanley Holding, Inc.
10.875%, 02/15/09+ ............... 10,000,000 9,900,000
Stone Container Corp.
9.875%, 02/01/01 ................. 5,500,000 5,534,375
----------
19,494,375
----------
FOODS (5.6%)
Imperial Holly Corp.
9.75%, 12/15/07 .................. 6,000,000 5,850,000
NE Restaurant Co., Inc.
10.75%, 07/15/08 ................. 9,000,000 8,212,500
Romacorp, Inc.
12.0%, 07/01/06 .................. 6,000,000 5,835,000
</TABLE>
15
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
Specialty Foods Corp. (Series B)
11.125%, 10/01/02 ................. $8,000,000 $7,520,000
Vlasic Foods International, Inc.
10.25%, 07/01/09 .................. 6,000,000 5,910,000
----------
33,327,500
----------
MEDIA & CABLE (1.1%)
Jones International Networks Ltd.
11.75%, 07/01/05 .................. 5,000,000 4,150,000
TVN Entertainment Corp.
14.0%, 08/01/08(d)+ ............... 5,000,000 2,737,500
----------
6,887,500
----------
RETAIL--FOOD (0.8%)
Digiorgio Corp. (Series B)
10.0%, 06/15/07 ................... 5,000,000 4,775,000
----------
TOTAL CONSUMER NONCYCLICALS (12.4%) 74,609,375
----------
CREDIT SENSITIVE
FINANCIAL SERVICES (2.2%)
Metris Companies, Inc.
10.0%, 11/01/04 ................... 8,000,000 7,840,000
Willis Corroon Corp.
9.0%, 02/01/09+ ................... 6,000,000 5,782,500
----------
13,622,500
----------
UTILITY--ELECTRIC (2.7%)
AES Corp.
9.5%, 06/01/09 .................... 6,000,000 6,165,000
Cogentrix Energy, Inc.
8.75%, 10/15/08 ................... 10,000,000 9,950,000
----------
16,115,000
----------
TOTAL CREDIT SENSITIVE (4.9%) ..... 29,737,500
----------
ENERGY
COAL & GAS PIPELINES (1.0%)
Chesapeake Energy Corp.
(Series B)
9.625%, 05/01/05 .................. 6,800,000 6,256,000
----------
GAS (0.5%)
Western Gas Resources, Inc.
10.0%, 06/15/09 ................... 3,000,000 3,060,000
----------
OIL--DOMESTIC (1.1%)
Transamerican Energy (Series B)
11.5%, 06/15/02 ................... 13,000,000 1,235,000
Trans-Resources, Inc. (Series B)
10.75%, 03/15/08 .................. 5,000,000 4,825,000
TransTexas Gas Corp. (Series D)
13.75%, 12/31/01(e)+ .............. 5,829,000 582,900
----------
6,642,900
----------
OIL--INTERNATIONAL (1.4%)
Northern Offshore ASA
10.0%, 05/15/05 ................... 6,500,000 3,575,000
Queen Sand Resources, Inc.
12.5%, 07/01/08 ................... 7,500,000 4,575,000
----------
8,150,000
----------
OIL--SUPPLIES & CONSTRUCTION (0.3%)
Celestica International, Inc.
10.5%, 12/31/06 ................... 1,623,000 1,758,926
----------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
RAILROADS (1.2%)
Vectura Group, Inc.
10.25%, 06/30/08 .................. $7,000,000 $7,000,000
----------
TOTAL ENERGY (5.5%) ............... 32,867,826
----------
TECHNOLOGY
ELECTRONICS (5.0%)
Amkor Technologies, Inc.
9.25%, 05/01/06+ .................. 6,000,000 5,850,000
CHS Electronics, Inc.
9.875%, 04/15/05 .................. 10,000,000 7,000,000
Elgar Holdings, Inc.
9.875%, 02/01/08 .................. 2,250,000 1,800,000
Geologistics Corp.
9.75%, 10/15/07 ................... 4,000,000 3,025,000
Interactive Systems, Inc.
Zero Coupon, 08/01/03(a) .......... 1,500,000 225,000
Micron Technology, Inc.
6.5%, 09/30/05+ ................... 4,000,000 3,090,000
Splitrock Services, Inc. (Series B)
11.75%, 07/15/08 .................. 10,000,000 9,350,000
----------
30,340,000
----------
OFFICE EQUIPMENT (0.9%)
Integrated Circuit Systems, Inc.
11.5%, 05/15/09+ .................. 5,500,000 5,486,250
----------
TELECOMMUNICATIONS (22.9%)
Alestra SA
12.625%, 05/15/09+ ................ 7,000,000 6,676,250
Call-Net Enterprises, Inc.
9.375%, 05/15/09 .................. 10,000,000 9,500,000
Carrier1, Inc.
13.25%, 02/15/09+ ................. 5,000,000 5,300,000
Charter Communications
Holdings LLC
8.625%, 04/01/09+ ................. 5,500,000 5,280,000
Econophone, Inc.
13.5%, 07/15/07 ................... 6,500,000 6,906,250
Exodus Communications, Inc.
11.25%, 07/01/08+ ................. 3,500,000 3,675,000
Hyperion Telecommunications,
Inc.
12.0%, 11/01/07+ .................. 7,500,000 7,575,000
ICG Services, Inc.
Zero Coupon, 05/01/08(a) .......... 7,000,000 3,710,000
Iridium LLC/Capital Corp.
(Series B)
14.0%, 07/15/05 ................... 12,000,000 2,340,000
Iridium LLC/Capital Corp.
(Series D)
10.875%, 07/15/05 ................. 5,000,000 1,050,000
KPNQWest BV
8.125%, 06/01/09+ ................. 5,000,000 4,875,000
Logix Communications
Enterprises
12.25%, 06/15/08 .................. 10,000,000 9,000,000
Long Distance International, Inc.
12.25%, 04/15/08 .................. 5,000,000 3,000,000
Nextel Communications, Inc.
9.75%, 08/15/04 ................... 3,500,000 3,561,250
</TABLE>
16
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------
<S> <C> <C>
Optel, Inc. (Series B)
13.0%, 02/15/05 .................. $10,000,000 $7,800,000
Orion Network Systems, Inc.
11.25%, 01/15/07(d) .............. 4,000,000 3,580,000
Price Communications Wire, Inc.
(Series B)
9.125%, 12/15/06 ................. 5,000,000 5,075,000
Primus Telecommunications
11.75%, 08/01/04(d) .............. 6,500,000 6,597,500
Startec Global Communications,
Inc.
12.0%, 05/15/08 .................. 5,000,000 4,475,000
US Xchange LLC
15.0%, 07/01/08 .................. 6,500,000 6,760,000
Versatel Telecommunications
13.25%, 05/15/08 ................. 5,800,000 6,003,000
13.25%, 05/15/08(d) .............. 4,200,000 4,347,000
Viatel, Inc.
11.5%, 03/15/09+ ................. 10,000,000 10,300,000
WinStar Equipment Corp.
12.5%, 03/15/04 .................. 10,000,000 10,450,000
------------
137,836,250
------------
TOTAL TECHNOLOGY (28.8%) ......... 173,662,500
------------
DIVERSIFIED
MISCELLANEOUS (4.2%)
Eagle Geophysical, Inc. (Series B)
10.75%, 07/15/08 ................. 3,000,000 1,560,000
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------
<S> <C> <C>
Elgin National Industries
(Series B)
11.0%, 11/01/07 .................. $ 3,000,000 $ 2,970,000
Generac Portable Products
11.25%, 07/01/06+ ................ 7,000,000 7,700,000
Pentacon, Inc.
12.25%, 04/01/09 ................. 7,000,000 6,912,500
Precision Partners, Inc.
12.0%, 03/15/09+ ................. 6,200,000 5,921,000
------------
TOTAL DIVERSIFIED (4.2%) ......... 25,063,500
------------
TOTAL LONG-TERM DEBT SECURITIES (86.8%)
(Amortized Cost $590,658,310)..... 522,805,838
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (7.5%)
Federal Home Loan Bank
4.53%, due 07/01/99 .............. 44,900,000 44,900,000
------------
TOTAL SHORT-TERM DEBT SECURITIES (7.5%)
(Amortized Cost $44,900,000)...... 44,900,000
------------
TOTAL INVESTMENTS (95.5%)
(Cost/Amortized Cost
$644,025,543)..................... 574,873,989
OTHER ASSETS
LESS LIABILITIES (4.5%) .......... 27,248,704
------------
NET ASSETS (100.0%) ................ $602,122,693
============
</TABLE>
- ----------
* Non-income producing.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1999, these securities amounted to $183,883,289 or
30.5% of net assets.
(a) Debt security initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
(b) Paid-in-kind preferred, quarterly stock payments.
(c) Coupon will increase periodically based upon a predetermined
schedule. Stated interest rate in effect at June 30, 1999.
(d) Consists of more than one class of securities traded together as a
unit; generally bonds with attached stocks or warrants.
(e) Securities in default.
See Notes to Financial Statements.
17
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.0%)
Dow Chemical Co. .................... 65,000 $ 8,246,875
Eastman Chemical Co. ................ 100,000 5,175,000
--------------
13,421,875
--------------
CHEMICALS--SPECIALTY (1.5%)
Lyondell Chemical Co. ............... 490,000 10,106,250
Praxair, Inc. ....................... 77,000 3,768,188
Solutia Inc. ........................ 250,000 5,328,125
--------------
19,202,563
--------------
TOTAL BASIC MATERIALS (2.5%) ...... 32,624,438
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.1%)
Republic Services, Inc.* ............ 600,000 14,850,000
--------------
PRINTING, PUBLISHING &
BROADCASTING (3.5%)
AT&T Corp.--Liberty Media
Group--A* ......................... 149,988 5,512,059
Belo (A.H.) Corp. (Series A) ........ 396,700 7,810,031
Chancellor Media Corp.* ............. 100,000 5,512,500
Donnelley (R.R.) & Sons Co. ......... 155,000 5,744,688
Gannett Co., Inc. ................... 135,000 9,635,625
Time Warner, Inc. ................... 152,000 11,172,000
--------------
45,386,903
--------------
TOTAL BUSINESS SERVICES (4.6%)..... 60,236,903
--------------
CAPITAL GOODS
BUILDING MATERIALS & FOREST
PRODUCTS (0.8%)
Masco Corp. ......................... 353,000 10,192,875
--------------
MACHINERY (3.0%)
AlliedSignal, Inc. .................. 302,000 19,026,000
United Technologies Corp. ........... 281,400 20,172,862
--------------
39,198,862
--------------
TOTAL CAPITAL GOODS (3.8%) ........ 49,391,737
--------------
CONSUMER CYCLICALS
AIRLINES (1.1%)
Continental Airlines, Inc.
(Class B)* ........................ 269,005 10,121,315
Delta Air Lines, Inc. ............... 78,400 4,517,800
--------------
14,639,115
--------------
APPAREL, TEXTILE (1.1%)
Tommy Hilfiger Corp.* ............... 185,200 13,612,200
--------------
HOUSEHOLD FURNITURE, APPLIANCES (0.7%)
Newell Rubbermaid, Inc. ............. 201,000 9,346,500
--------------
LEISURE RELATED (0.0%)
Harley-Davidson, Inc. ............... 6,300 342,563
--------------
RETAIL--GENERAL (2.3%)
Dayton Hudson Corp. ................. 109,000 7,085,000
Saks, Inc.* ......................... 783,300 22,617,787
--------------
29,702,787
--------------
TOTAL CONSUMER CYCLICALS (5.2%) 67,643,165
--------------
CONSUMER NONCYCLICALS
BEVERAGES (2.0%)
Coca-Cola Enterprises, Inc. ......... 380,000 11,305,000
Pepsi Bottling Group, Inc. .......... 645,000 14,875,313
--------------
26,180,313
--------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
DRUGS (5.5%)
Bristol-Myers Squibb Co. ............ 658,000 $ 46,347,875
Genzyme Corp. (General
Division)* ........................ 97,300 4,719,050
Schering-Plough Corp. ............... 385,000 20,405,000
--------------
71,471,925
--------------
FOODS (2.3%)
General Mills, Inc. ................. 61,000 4,902,875
H.J. Heinz Co. ...................... 99,000 4,962,375
Nabisco Group Holdings Corp. ........ 553,900 10,835,669
Tyson Foods, Inc. (Class A) ......... 408,000 9,180,000
--------------
29,880,919
--------------
HOSPITAL SUPPLIES & SERVICES (3.7%)
Columbia/HCA Healthcare
Corp. ............................. 305,000 6,957,813
Genzyme Surgical Products* .......... 17,417 76,742
Health Management Associates,
Inc. (Class A)* ................... 380,000 4,275,000
LifePoint Hospitals, Inc.* .......... 16,052 215,699
PacifiCare Health Systems, Inc.
(Class B)* ........................ 97,400 7,006,712
Tenet Healthcare Corp.* ............. 1,585,000 29,421,562
Triad Hospitals, Inc.* .............. 16,052 216,698
--------------
48,170,226
--------------
RETAIL--FOOD (1.1%)
Kroger Co.* ......................... 538,000 15,030,375
--------------
SOAPS & TOILETRIES (0.4%)
Avon Products, Inc. ................. 98,000 5,439,000
--------------
TOBACCO (2.5%)
Philip Morris Cos., Inc. ............ 669,500 26,905,531
R.J. Reynolds Tobacco Holdings,
Inc.* ............................. 184,633 5,815,950
--------------
32,721,481
--------------
TOTAL CONSUMER NONCYCLICALS (17.5%) 228,894,239
--------------
CREDIT SENSITIVE
BANKS (9.7%)
Bank of America Corp. ............... 702,000 51,465,375
Bank One Corp. ...................... 250,000 14,890,625
Chase Manhattan Corp. ............... 262,000 22,695,750
Citigroup, Inc. ..................... 568,500 27,003,750
Wells Fargo Co. ..................... 240,000 10,260,000
--------------
126,315,500
--------------
FINANCIAL SERVICES (6.0%)
Associates First Capital Corp.
(Class A) ......................... 176,000 7,799,000
C.I.T. Group, Inc. (Class A) ........ 195,100 5,633,512
Household International, Inc. ....... 827,000 39,179,125
MBNA Corp. .......................... 186,750 5,719,219
Merrill Lynch & Co., Inc. ........... 150,000 11,990,625
Newcourt Credit Group, Inc. ......... 121,700 1,574,494
PMI Group, Inc. ..................... 99,600 6,256,125
--------------
78,152,100
--------------
INSURANCE (1.3%)
Hartford Financial Services
Group, Inc. ....................... 165,000 9,621,563
Travelers Property Casualty
Corp. (Class A) ................... 205,000 8,020,625
--------------
17,642,188
--------------
</TABLE>
18
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
UTILITY--ELECTRIC (3.6%)
AES Corp.* .......................... 100,100 $ 5,818,312
CMS Energy Corp. .................... 123,000 5,150,625
Consolidated Edison Inc. ............ 339,300 15,353,325
FPL Group, Inc. ..................... 130,000 7,101,250
GPU, Inc. ........................... 186,000 7,846,875
Pinnacle West Capital Corp. ......... 128,400 5,168,100
--------------
46,438,487
--------------
UTILITY--TELEPHONE (1.3%)
AT&T Corp. .......................... 308,675 17,227,923
--------------
TOTAL CREDIT SENSITIVE (21.9%)..... 285,776,198
--------------
ENERGY
OIL--DOMESTIC (4.0%)
Kerr-McGee Corp. .................... 246,200 12,356,162
Murphy Oil Corp. .................... 171,000 8,346,938
Union Pacific Resources
Group, Inc. ....................... 183,800 2,998,238
USX-Marathon Group, Inc. ............ 871,000 28,361,937
--------------
52,063,275
--------------
OIL--INTERNATIONAL (1.6%)
Shell Transport & Trading Co.
(ADR) ............................. 235,000 10,898,125
Total Fina SA (ADR)* ................ 170,000 10,954,375
--------------
21,852,500
--------------
OIL--SUPPLIES & CONSTRUCTION (3.1%)
BJ Services Co.* .................... 280,000 8,242,500
Noble Drilling Corp.* ............... 1,274,400 25,089,750
Transocean Offshore, Inc. ........... 272,800 7,161,000
--------------
40,493,250
--------------
TOTAL ENERGY (8.7%) ............... 114,409,025
--------------
TECHNOLOGY
ELECTRONICS (6.4%)
Altera Corp.* ....................... 259,600 9,556,525
Atmel Corp.* ........................ 404,500 10,592,844
Sanmina Corp.* ...................... 366,500 27,808,187
Seagate Technology, Inc.* ........... 173,000 4,433,125
Solectron Corp.* .................... 458,209 30,556,836
--------------
82,947,517
--------------
OFFICE EQUIPMENT (0.3%)
Compaq Computer Corp. ............... 186,600 4,420,088
--------------
OFFICE EQUIPMENT SERVICES (4.5%)
Computer Sciences Corp.* ............ 254,000 17,573,625
Electronic Data Systems Corp. ....... 197,200 11,154,125
First Data Corp. .................... 467,000 22,853,812
Oracle Corp.* ....................... 192,000 7,128,000
--------------
58,709,562
--------------
TELECOMMUNICATIONS (2.8%)
Lucent Technologies, Inc. ........... 132,000 8,901,750
MCI WorldCom, Inc.* ................. 158,682 13,686,323
Tellabs, Inc.* ...................... 128,000 8,648,000
Vodafone AirTouch PLC (ADR).......... 24,000 4,728,000
WinStar Communications, Inc.* ....... 9,308 453,765
--------------
36,417,838
--------------
TOTAL TECHNOLOGY (14.0%) .......... 182,495,005
--------------
DIVERSIFIED
MISCELLANEOUS (5.1%)
Honeywell, Inc. ..................... 96,000 11,124,000
Tyco International Ltd. ............. 484,200 45,877,950
U.S. Industries, Inc. ............... 367,200 6,242,400
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
Viad Corp. .......................... 130,000 $ 4,021,875
--------------
TOTAL DIVERSIFIED (5.1%) .......... 67,266,225
--------------
TOTAL COMMON STOCKS (83.3%)
(Cost $906,750,178)................ 1,088,736,935
--------------
PREFERRED STOCKS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.2%)
Chancellor Media Corp.
7.0% Conv. ........................ 21,400 3,287,575
--------------
TRUCKING, SHIPPING (0.3%)
CNF Trust I
5.0% Conv. Series A ............... 58,000 3,313,250
--------------
TOTAL BUSINESS SERVICES (0.5%)...... 6,600,825
--------------
CONSUMER CYCLICALS (0.8%)
LEISURE RELATED
Royal Caribbean Cruises Ltd.
7.25% Series A .................... 76,300 10,395,875
--------------
CONSUMER NONCYCLICALS (0.1%)
DRUGS
Alkermes, Inc.
6.5% Conv. ........................ 16,100 750,663
--------------
CREDIT SENSITIVE (0.5%)
UTILITY--ELECTRIC
AES Trust I
5.375% Conv. Series A ............. 84,700 7,008,925
--------------
ENERGY (0.8%)
RAILROADS
Union Pacific Capital Trust
6.25% Conv.+ ...................... 206,000 10,609,000
--------------
TECHNOLOGY
ELECTRONICS (0.2%)
Times Mirror Co.
4.25% Conv. ....................... 22,000 1,982,750
--------------
TELECOMMUNICATIONS (2.6%)
Adelphia Communications, Inc.
5.5% Conv., Series D .............. 21,900 4,232,175
Globalstar Telecommunications
Ltd.
8.0% Conv.+ ....................... 41,000 2,331,875
ICG Communications, Inc.
6.75% Conv. ....................... 43,800 2,315,925
IXC Communications, Inc.:
6.75% Conv. ....................... 36,200 1,366,550
6.75% Conv.+ ...................... 46,500 1,755,375
Nextel Strypes Trust
7.25% Conv. ....................... 205,900 8,647,800
Nextlink Communications
6.5% Conv. ........................ 72,100 6,615,175
WinStar Communications, Inc.
7.0% Conv. ........................ 118,900 6,762,437
--------------
34,027,312
--------------
TOTAL TECHNOLOGY (2.8%) ........... 36,010,062
--------------
TOTAL PREFERRED STOCKS (5.5%)
(Cost $62,038,841)................. 71,375,350
--------------
</TABLE>
19
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PRINTING, PUBLISHING & BROADCASTING (0.1%)
P-Com, Inc.
4.25% Conv., 11/01/02+ ........... $ 2,560,000 $ 1,459,200
--------------
PROFESSIONAL SERVICES (0.2%)
Doubleclick, Inc.
4.75% Conv., 03/15/06+ ........... 2,315,000 2,873,494
--------------
TOTAL BUSINESS SERVICES (0.3%)..... 4,332,694
--------------
CONSUMER CYCLICALS
LEISURE RELATED (0.2%)
CUC International, Inc.
3.0% Conv., 02/15/02+ ............ 3,390,000 3,241,687
--------------
RETAIL--GENERAL (0.4%)
Amazon.Com, Inc.:
4.75% Conv., 02/01/09+ ........... 4,075,000 3,952,750
4.75% Conv., 02/01/09 ............ 750,000 727,500
--------------
4,680,250
--------------
TOTAL CONSUMER CYCLICALS (0.6%) 7,921,937
--------------
CONSUMER NONCYCLICALS
DRUGS (1.1%)
MedImmune, Inc.:
7.0% Conv., 07/01/03 ............. 1,835,000 12,633,975
7.0% Conv. Sub. Note,
07/01/03+ ..................... 20,000 137,700
Quintiles Transnational Corp.
4.25% Conv., 05/31/00+ ........... 820,000 916,350
--------------
13,688,025
--------------
HOSPITAL SUPPLIES & SERVICES (0.3%)
FPA Medical Management, Inc.
6.5% Conv., 12/15/01(a) .......... 1,770,000 177
RES-Care, Inc.:
6.0% Conv., 12/01/04+ ............ 1,420,000 1,814,050
6.0% Conv., 12/01/04 ............. 770,000 983,675
Sunrise Assisted Living, Inc.
5.5% Conv., 06/15/02 ............. 1,200,000 1,330,500
--------------
4,128,402
--------------
TOTAL CONSUMER NONCYCLICALS (1.4%) 17,816,427
--------------
ENERGY
OIL--SUPPLIES & CONSTRUCTION (0.1%)
Diamond Offshore Drilling, Inc.
3.75% Conv., 02/15/07 ............ 630,000 626,850
Nabors Industries, Inc.
5.0% Conv., 05/15/06 ............. 630,000 852,075
--------------
TOTAL ENERGY (0.1%) .............. 1,478,925
--------------
TECHNOLOGY
ELECTRONICS (3.5%)
America Online, Inc.
4.0% Conv., 11/15/02+ ............ 1,290,000 10,923,881
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C>
Amkor Technologies, Inc.
5.75% Conv., 05/01/03+ ........... $ 4,650,000 $ 4,557,000
EMC Corp.
3.25% Conv., 03/15/02+ ........... 1,485,000 7,213,387
HNC Software, Inc.
4.75% Conv., 03/01/03 ............ 1,990,000 1,945,225
Level One Communications, Inc.
4.0% Conv., 09/01/04+ ............ 3,475,000 6,780,594
LSI Logic Corp.
4.25% Conv., 03/15/04+ ........... 4,475,000 7,255,094
Mindspring Enterprises, Inc.
5.0% Conv., 04/15/06 ............. 2,035,000 1,920,531
Photronics, Inc.
6.0% Conv., 06/01/04 ............. 3,295,000 3,595,669
Wind River Systems, Inc.
5.0% Conv., 08/01/02 ............. 2,050,000 1,783,500
--------------
45,974,881
--------------
TELECOMMUNICATIONS (2.3%)
At Home Corp.
0.5246% Conv., 12/28/18+ ......... 3,450,000 2,738,438
CNET, Inc.
5.0% , 03/01/06 .................. 1,290,000 2,167,200
Comverse Technology, Inc.:
5.75% Conv., 10/01/06 ............ 1,200,000 2,983,500
5.75% Conv., 10/01/06+ ........... 3,290,000 8,179,762
Global TeleSystems Group, Inc.
5.75% Conv., 07/01/10+ ........... 6,190,000 9,826,625
Nextel Communications, Inc.
4.75% Conv., 07/01/07+ ........... 2,060,000 2,441,100
NTL, Inc.
7.0% Conv., 12/15/08 ............. 800,000 1,268,400
--------------
29,605,025
--------------
TOTAL TECHNOLOGY (5.8%) .......... 75,579,906
--------------
TOTAL LONG-TERM DEBT SECURITIES (8.2%)
(Amortized Cost $72,712,396)....... 107,129,889
--------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Bank
4.6%, due 07/01/99 ............... 22,800,000 22,800,000
Federal Home Loan Mortgage
Corp. 4.8%, due 07/14/99 ......... 7,000,000 6,987,926
--------------
TOTAL U.S. GOVERNMENT AGENCIES (2.3%)
29,787,926
--------------
TOTAL SHORT-TERM DEBT SECURITIES (2.3%)
(Amortized Cost $29,787,926)....... 29,787,926
--------------
TOTAL INVESTMENTS (99.3%)
(Cost/Amortized Cost
$1,071,289,341)................... 1,297,030,100
OTHER ASSETS
LESS LIABILITIES (0.7%) .......... 9,635,760
--------------
NET ASSETS (100.0%) ................ $1,306,665,860
==============
</TABLE>
- ----------
* Non-income producing.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified
institutional buyers. At June 30, 1999, these securities amounted to
$89,007,362 or 6.8% of net assets.
(a) Security in default.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
20
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.6%)
Air Products & Chemicals, Inc. ....... 44,800 $ 1,803,200
Avery Dennison Corp. ................. 22,900 1,382,588
Dow Chemical Co. ..................... 44,600 5,658,625
Dupont (E.I.) de Nemours
& Co. .............................. 232,200 15,862,162
Eastman Chemical Co. ................. 22,600 1,169,550
Ecolab, Inc. ......................... 29,500 1,286,938
FMC Corp.* ........................... 16,300 1,113,494
Hercules, Inc. ....................... 29,700 1,167,581
Monsanto Co. ......................... 126,200 4,977,012
Rohm & Haas Co. ...................... 42,878 1,838,394
Union Carbide Corp. .................. 25,400 1,238,250
--------------
37,497,794
--------------
CHEMICALS--SPECIALTY (0.3%)
Praxair, Inc. ........................ 31,800 1,556,213
Sigma-Aldrich Corp. .................. 37,500 1,291,406
Southern Co. ......................... 140,200 3,715,300
--------------
6,562,919
--------------
METALS & MINING (0.6%)
Alcan Aluminum Ltd. .................. 32,300 1,024,371
Alcan Aluminum Ltd. (Canada).......... 13,200 421,575
Alcoa, Inc. .......................... 72,800 4,504,500
Barrick Gold Corp. ................... 73,300 1,420,187
Engelhard Corp. ...................... 61,600 1,393,700
Engelhard Corp.--Rights* ............. 32,900 0
Newmont Mining Corp. ................. 53,107 1,055,501
Phelps Dodge Corp. ................... 16,900 1,046,744
Placer Dome, Inc. .................... 84,700 1,000,519
Reynolds Metals Co. .................. 18,900 1,115,100
--------------
12,982,197
--------------
PAPER (0.8%)
Champion International Corp. ......... 20,600 986,225
Fort James Corp. ..................... 41,900 1,586,963
Georgia Pacific Group ................ 36,000 1,705,500
International Paper Co. .............. 80,554 4,067,977
Kimberly Clark Corp. ................. 110,844 6,318,108
Mead Corp. ........................... 25,400 1,060,450
Temple Inland, Inc. .................. 17,200 1,173,900
Westvaco Corp. ....................... 37,600 1,090,400
Willamette Industries, Inc. .......... 25,300 1,165,381
--------------
19,154,904
--------------
STEEL (0.1%)
Allegheny Teledyne, Inc. ............. 43,600 986,450
Nucor Corp. .......................... 16,900 801,694
USX-U.S. Steel Group ................. 31,900 861,300
--------------
2,649,444
--------------
TOTAL BASIC MATERIALS (3.4%) ........ 78,847,258
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.4%)
Browning-Ferris Industries, Inc. ..... 33,000 1,419,000
Johnson Controls, Inc. ............... 16,300 1,129,794
Thermo Electron Corp.* ............... 61,500 1,233,844
Waste Management, Inc. ............... 122,084 6,562,015
--------------
10,344,653
--------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------------------
<S> <C> <C>
PRINTING, PUBLISHING &
BROADCASTING (2.9%)
CBS Corp.* ........................... 144,100 $ 6,259,344
Clear Channel Communications,
Inc.* .............................. 65,900 4,542,981
Comcast Corp. (Class A) SPL .......... 146,800 5,642,625
Deluxe Corp. ......................... 32,900 1,281,044
Donnelley (R.R.) & Sons Co. .......... 31,100 1,152,644
Dow Jones & Co., Inc. ................ 22,800 1,209,825
Dun & Bradstreet Corp. ............... 32,700 1,158,806
Gannett Co., Inc. .................... 55,900 3,989,862
Knight-Ridder, Inc. .................. 22,100 1,214,119
McGraw-Hill Companies, Inc. .......... 39,100 2,108,956
MediaOne Group, Inc.* ................ 124,100 9,229,937
New York Times Co. (Class A) ......... 35,100 1,292,119
Time Warner, Inc. .................... 251,000 18,448,500
Times Mirror Co. (Class A) ........... 20,100 1,190,925
Tribune Co. .......................... 22,600 1,969,025
Viacom, Inc. (Class B)* .............. 138,200 6,080,800
--------------
66,771,512
--------------
PROFESSIONAL SERVICES (0.3%)
Block (H&R), Inc. .................... 24,000 1,200,000
Interpublic Group Cos., Inc. ......... 26,800 2,321,580
Omnicom Group, Inc. .................. 33,400 2,672,000
Service Corp. International .......... 59,700 1,149,225
--------------
7,342,805
--------------
TRUCKING, SHIPPING (0.1%)
FDX Corp.* ........................... 57,600 3,124,800
--------------
TOTAL BUSINESS SERVICES (3.7%)....... 87,583,770
--------------
CAPITAL GOODS
AEROSPACE (1.0%)
Boeing Co. ........................... 195,174 8,624,251
General Dynamics Corp. ............... 25,100 1,719,350
Lockheed Martin Corp. ................ 81,708 3,043,623
Northrop Grumman Corp. ............... 18,900 1,253,306
Northrop Grumman Corp.--
Rights (expire 10/31/08)* .......... 9,700 0
Raytheon Co. (Class B) ............... 67,500 4,750,313
Rockwell International Corp. ......... 38,400 2,332,800
TRW, Inc. ............................ 23,200 1,273,100
--------------
22,996,743
--------------
BUILDING & CONSTRUCTION (0.1%)
Centex Corp. ......................... 33,200 1,247,075
--------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.4%)
Louisiana-Pacific Corp. .............. 51,300 1,218,375
Masco Corp. .......................... 71,400 2,061,675
PPG Industries, Inc. ................. 36,300 2,143,969
Sherwin Williams Co. ................. 34,700 962,925
Vulcan Materials Co. ................. 19,400 936,050
Weyerhaeuser Co. ..................... 38,800 2,667,500
--------------
9,990,494
--------------
ELECTRICAL EQUIPMENT (3.6%)
Emerson Electric Co. ................. 89,500 5,627,343
General Electric Co. ................. 665,700 75,224,100
General Instrument Corp.* ............ 33,400 1,419,500
</TABLE>
21
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------
<S> <C> <C>
Grainger (W.W.), Inc. ............... 23,500 $ 1,264,594
Thomas & Betts Corp. ................ 26,800 1,266,300
-----------
84,801,837
-----------
MACHINERY (1.4%)
AlliedSignal, Inc. .................. 113,700 7,163,100
Caterpillar, Inc. ................... 73,200 4,392,000
Cooper Industries, Inc. ............. 23,800 1,237,600
Cummins Engine Company, Inc.......... 21,500 1,228,187
Deere & Co. ......................... 47,000 1,862,375
Dover Corp. ......................... 44,000 1,540,000
Fluor Corp. ......................... 32,100 1,300,050
Illinois Tool Works, Inc. ........... 49,300 4,042,600
Ingersoll Rand Co. .................. 32,450 2,097,081
Pall Corp. .......................... 61,200 1,357,875
Parker-Hannifin Corp. ............... 22,750 1,040,813
United Technologies Corp. ........... 94,000 6,738,625
-----------
34,000,306
-----------
TOTAL CAPITAL GOODS (6.5%) ......... 153,036,455
-----------
CONSUMER CYCLICALS
AIRLINES (0.3%)
AMR Corp.* .......................... 36,900 2,518,425
Delta Air Lines, Inc. ............... 26,700 1,538,587
Southwest Airlines Co. .............. 63,325 1,970,991
US Airways Group, Inc.* ............. 18,900 823,331
-----------
6,851,334
-----------
APPAREL, TEXTILE (0.2%)
Liz Claiborne, Inc. ................. 32,500 1,186,250
Nike, Inc. (Class B) ................ 59,200 3,748,100
VF Corp. ............................ 22,800 974,700
-----------
5,909,050
-----------
AUTO RELATED (0.4%)
Dana Corp. .......................... 32,423 1,493,484
Danaher Corp. ....................... 28,800 1,674,000
Delphi Automotive Systems
Corp. ............................. 108,052 2,005,715
Eaton Corp. ......................... 13,200 1,214,400
Genuine Parts Co. ................... 36,800 1,288,000
Goodyear Tire & Rubber Co. .......... 34,200 2,011,388
-----------
9,686,987
-----------
AUTOS & TRUCKS (1.1%)
AutoZone, Inc.* ..................... 36,700 1,105,588
Ford Motor Co. ...................... 248,000 13,996,500
General Motors Corp. ................ 134,100 8,850,600
Paccar, Inc. ........................ 19,800 1,056,825
-----------
25,009,513
-----------
FOOD SERVICES, LODGING (0.7%)
Harrah's Entertainment, Inc.* ....... 48,100 1,058,200
Marriott International, Inc.
(Class A) ......................... 50,750 1,896,781
McDonald's Corp. .................... 282,900 11,687,306
Tricon Global Restaurants, Inc.*..... 30,220 1,635,658
-----------
16,277,945
-----------
HOUSEHOLD FURNITURE, APPLIANCES (0.3%)
Black & Decker Corp. ................ 18,400 1,161,500
Maytag Corp. ........................ 17,600 1,226,500
Newell Rubbermaid, Inc. ............. 54,120 2,516,580
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------
<S> <C> <C>
Stanley Works ....................... 35,200 $ 1,133,000
Whirlpool Corp. ..................... 16,100 1,191,400
-----------
7,228,980
-----------
LEISURE RELATED (1.2%)
American Greetings Corp.
(Class A) ......................... 45,600 1,373,700
Carnival Corp. (Class A) ............ 119,200 5,781,200
Cendant Corp.* ...................... 170,850 3,502,425
Disney (Walt) Co. ................... 420,800 12,965,900
Hasbro, Inc. ........................ 39,000 1,089,563
Hilton Hotels Corp. ................. 76,700 1,088,181
Mattel, Inc. ........................ 83,800 2,215,462
Mirage Resorts, Inc.* ............... 54,000 904,500
-----------
28,920,931
-----------
PHOTO & OPTICAL (0.3%)
Allergan, Inc. ...................... 13,400 1,487,400
Eastman Kodak Co. ................... 68,900 4,667,975
-----------
6,155,375
-----------
RETAIL--GENERAL (5.6%)
Best Buy Co., Inc.* ................. 41,300 2,787,750
Circuit City Stores--Circuit City
Group ............................. 19,700 1,832,100
Consolidated Stores Corp.* .......... 31,500 850,500
Costco Cos., Inc.* .................. 44,500 3,562,781
CVS Corp. ........................... 79,500 4,064,437
Dayton Hudson Corp. ................. 88,500 5,752,500
Dollar General Corp. ................ 45,562 1,321,298
Federated Department Stores,
Inc.* ............................. 41,400 2,191,613
Gap, Inc. ........................... 174,300 8,780,362
Harcourt General, Inc. .............. 23,000 1,185,938
Home Depot, Inc. .................... 300,400 19,357,025
K-Mart Corp.* ....................... 97,300 1,599,369
Kohl's Corp.* ....................... 31,800 2,454,563
Limited, Inc. ....................... 44,700 2,028,263
Lowe's Cos., Inc. ................... 75,700 4,291,244
May Department Stores Co. ........... 70,300 2,873,512
Nordstrom, Inc. ..................... 34,400 1,152,400
Office Depot, Inc.* ................. 71,400 1,575,263
Penney (J.C.), Inc. ................. 52,900 2,568,956
Sears, Roebuck & Co. ................ 76,900 3,426,856
Staples, Inc.* ...................... 95,050 2,940,609
Tandy Corp. ......................... 41,000 2,003,875
TJX Cos., Inc. ...................... 64,900 2,161,981
Toys R Us, Inc.* .................... 50,400 1,042,650
Wal-Mart Stores, Inc. ............... 906,100 43,719,325
Walgreen Co. ........................ 200,400 5,886,750
-----------
131,411,920
-----------
TOTAL CONSUMER CYCLICALS (10.1%) 237,452,035
-----------
CONSUMER NONCYCLICALS
BEVERAGES (2.5%)
Anheuser Busch Companies, Inc. 97,900 6,944,781
Brown Forman Corp. (Class B) ........ 17,700 1,153,819
Coca-Cola Co. ....................... 504,400 31,525,000
Coca-Cola Enterprises, Inc. ......... 80,200 2,385,950
Pepsico, Inc. ....................... 300,200 11,613,987
Seagram Ltd. ........................ 81,700 4,115,638
-----------
57,739,175
-----------
</TABLE>
22
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
CONTAINERS (0.1%)
Crown Cork & Seal Co., Inc. ....... 30,700 $ 874,950
Owens-Illinois, Inc.* ............. 34,500 1,127,719
Sealed Air Corp.* ................. 17,510 1,135,961
--------------
3,138,630
--------------
DRUGS (7.1%)
ALZA Corp.* ....................... 29,600 1,505,900
American Home Products Corp........ 269,900 15,519,250
Amgen, Inc.* ...................... 104,300 6,349,262
Bristol-Myers Squibb Co. .......... 407,000 28,668,062
Lilly (Eli) & Co. ................. 225,200 16,129,950
Merck & Co., Inc. ................. 487,900 36,104,600
Pfizer, Inc. ...................... 264,700 29,050,825
Pharmacia & Upjohn, Inc. .......... 104,090 5,913,613
Schering-Plough Corp. ............. 301,000 15,953,000
Warner-Lambert Co. ................ 167,600 11,627,250
Watson Pharmaceuticals, Inc.* ..... 28,200 988,763
--------------
167,810,475
--------------
FOODS (1.6%)
Archer Daniels Midland Co. ........ 118,570 1,830,424
Bestfoods ......................... 58,500 2,895,750
Campbell Soup Co. ................. 91,000 4,220,125
ConAgra, Inc. ..................... 98,000 2,609,250
General Mills, Inc. ............... 30,700 2,467,512
H.J. Heinz Co. .................... 74,050 3,711,756
Hershey Foods Corp. ............... 28,700 1,704,063
Kellogg Co. ....................... 82,900 2,735,700
Nabisco Group Holdings Corp. ...... 67,600 1,322,425
Pioneer Hi Bred International,
Inc. ............................ 47,200 1,837,850
Quaker Oats Co. ................... 26,900 1,785,488
Ralston--Ralston Purina Group...... 65,700 1,999,744
Rite Aid Corp. .................... 49,700 1,223,863
Sara Lee Corp. .................... 186,600 4,233,487
Wrigley (Wm.), Jr. Co. ............ 23,200 2,088,000
--------------
36,665,437
--------------
HOSPITAL SUPPLIES & SERVICES (3.5%)
Abbott Laboratories ............... 310,800 14,141,400
Baxter International, Inc. ........ 57,300 3,473,812
Becton, Dickinson & Co. ........... 51,000 1,530,000
Biomet, Inc. ...................... 26,100 1,037,475
Boston Scientific Corp.* .......... 78,800 3,462,275
Cardinal Health, Inc. ............. 55,700 3,571,762
Columbia/HCA Healthcare
Corp. ........................... 132,200 3,015,812
Guidant Corp. ..................... 60,400 3,106,825
HCR Manor Care, Inc.* ............. 44,500 1,076,344
HEALTHSOUTH Corp.* ................ 97,600 1,457,900
IMS Health, Inc. .................. 65,000 2,031,250
Johnson and Johnson ............... 275,400 26,989,200
Medtronic, Inc. ................... 119,600 9,313,850
PE Corp.--PE Biosystems
Group ........................... 10,400 1,193,400
St. Jude Medical, Inc.* ........... 35,649 1,269,996
Tenet Healthcare Corp.* ........... 60,800 1,128,600
United HealthCare Corp. ........... 38,100 2,386,013
Wellpoint Health Networks,
Inc.* ........................... 13,300 1,128,838
--------------
81,314,752
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
RETAIL--FOOD (0.8%)
Albertsons, Inc. .................. 84,580 $ 4,361,156
Kroger Co.* ....................... 167,000 4,665,562
Safeway, Inc.* .................... 97,600 4,831,200
Supervalu, Inc. ................... 49,000 1,258,688
Sysco Corp. ....................... 68,100 2,030,231
Winn Dixie Stores, Inc. ........... 30,800 1,137,675
--------------
18,284,512
--------------
SOAPS & TOILETRIES (2.3%)
Avon Products, Inc. ............... 51,600 2,863,800
Clorox Co. ........................ 22,500 2,403,281
Colgate Palmolive Co. ............. 58,600 5,786,750
Gillette Co. ...................... 227,100 9,311,100
International Flavors &
Fragrances, Inc. ................ 26,900 1,193,688
Procter & Gamble Co. .............. 271,800 24,258,150
Unilever NV--New York Shares....... 131,011 9,137,973
--------------
54,954,742
--------------
TOBACCO (1.0%)
Fortune Brands, Inc. .............. 34,200 1,415,025
Loews Corp. ....................... 21,000 1,661,625
Philip Morris Cos., Inc. .......... 506,900 20,371,044
UST, Inc. ......................... 39,200 1,146,600
--------------
24,594,294
--------------
TOTAL CONSUMER NONCYCLICALS (18.9%) 444,502,017
--------------
CREDIT SENSITIVE
BANKS (7.9%)
AmSouth Bancorp. .................. 36,900 855,619
Bank of America Corp. ............. 354,089 25,959,150
Bank of New York Co., Inc. ........ 155,600 5,708,575
Bank One Corp. .................... 240,537 14,326,985
BankBoston Corp. .................. 60,700 3,103,287
Chase Manhattan Corp. ............. 173,080 14,993,055
Citigroup, Inc. ................... 691,660 32,853,850
Comerica, Inc. .................... 31,100 1,848,506
Fifth Third Bancorp ............... 54,450 3,624,328
First Union Corp. ................. 202,756 9,529,532
Firstar Corp. ..................... 141,200 3,953,600
Golden West Financial Corp. ....... 11,400 1,117,200
Huntington Bancshares, Inc. ....... 41,550 1,454,250
KeyCorp. .......................... 93,100 2,990,837
Mellon Bank Corp. ................. 106,800 3,884,850
Mercantile Bancorp., Inc. ......... 31,500 1,799,438
Morgan (J.P.) & Co., Inc. ......... 35,800 5,029,900
National City Corp. ............... 66,800 4,375,400
Northern Trust Corp. .............. 22,200 2,153,400
PNC Bank Corp. .................... 61,600 3,549,700
Regions Financial Corp. ........... 44,300 1,702,781
Republic New York Corp. ........... 21,900 1,493,306
SouthTrust Corp. .................. 32,600 1,251,025
State Street Corp. ................ 32,800 2,800,300
Summit Bancorp. ................... 34,200 1,429,988
Suntrust Banks, Inc. .............. 65,600 4,555,100
U.S. Bancorp. ..................... 149,078 5,068,652
Union Planters Corp. .............. 28,100 1,255,719
Wachovia Corp. .................... 41,500 3,550,844
Washington Mutual, Inc. ........... 121,142 4,285,398
Wells Fargo Co. ................... 336,400 14,381,100
--------------
184,885,675
--------------
</TABLE>
23
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES (3.2%)
American Express Co. ............... 92,400 $ 12,023,550
Associates First Capital Corp.
(Class A) ........................ 148,700 6,589,269
Bear Stearns Co., Inc. ............. 24,648 1,152,294
Capital One Financial Corp. ........ 38,700 2,155,106
Countrywide Credit Industries,
Inc. ............................. 26,900 1,149,975
Equifax, Inc. ...................... 30,200 1,077,763
Fleet Financial Group, Inc. ........ 116,258 5,158,949
Franklin Resources, Inc. ........... 49,700 2,019,062
Household International, Inc. ...... 98,646 4,673,354
Lehman Brothers Holdings, Inc....... 21,800 1,357,050
MBIA, Inc. ......................... 19,000 1,230,250
MBNA Corp. ......................... 160,430 4,913,169
Merrill Lynch & Co., Inc. .......... 72,400 5,787,475
Morgan Stanley Dean Witter &
Co. .............................. 118,005 12,095,512
Paine Webber Group, Inc. ........... 29,900 1,397,825
Schwab (Charles) Corp. ............. 81,925 9,001,509
SLM Holding Corp. .................. 32,600 1,493,488
Synovus Financial Corp. ............ 52,650 1,046,419
Transamerica Corp. ................. 24,700 1,852,500
--------------
76,174,519
--------------
INSURANCE (3.3%)
Aetna, Inc. ........................ 28,243 2,525,983
AFLAC, Inc. ........................ 54,900 2,628,337
Allstate Corp. ..................... 167,576 6,011,789
American General Corp. ............. 51,500 3,881,812
American International Group,
Inc. ............................. 250,799 29,359,158
Aon Corp. .......................... 52,125 2,150,156
Chubb Corp. ........................ 32,200 2,237,900
CIGNA Corp. ........................ 42,200 3,755,800
Cincinnati Financial Corp. ......... 33,000 1,239,563
Conseco, Inc. ...................... 65,446 1,992,013
Hartford Financial Services
Group, Inc. ...................... 47,700 2,781,506
Jefferson-Pilot Corp. .............. 20,950 1,386,628
Lincoln National Corp.
Industries ....................... 41,200 2,155,275
Marsh & McLennan Cos., Inc. ........ 52,500 3,963,750
MGIC Investment Corp. .............. 22,400 1,089,200
Progressive Corp. .................. 14,300 2,073,500
Provident Companies, Inc. .......... 27,600 1,104,000
Providian Financial Corp. .......... 28,900 2,702,150
Safeco Corp. ....................... 27,300 1,204,613
Saint Paul Cos., Inc. .............. 46,664 1,484,499
Torchmark Corp. .................... 34,900 1,190,963
UnumProvident Corp. ................ 27,400 1,500,150
--------------
78,418,745
--------------
MORTGAGE RELATED (1.0%)
Fannie Mae ......................... 211,800 14,481,825
Freddie Mac ........................ 138,600 8,038,800
--------------
22,520,625
--------------
UTILITY--ELECTRIC (1.9%)
AES Corp.* ......................... 34,700 2,016,937
Ameren Corp. ....................... 29,800 1,143,575
American Electric Power, Inc. ...... 37,500 1,408,594
Carolina Power & Light Co. ......... 29,100 1,245,844
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------
<S> <C> <C>
Central & South West Co. ........... 43,200 $ 1,009,800
CINergy Corp. ...................... 36,813 1,178,016
CMS Energy Corp. ................... 20,700 866,813
Consolidated Edison, Inc. .......... 46,900 2,122,225
Constellation Energy Group ......... 42,200 1,250,175
Dominion Resources, Inc. ........... 38,300 1,658,869
DTE Energy Co. ..................... 27,900 1,116,000
Duke Energy Co. .................... 72,830 3,960,131
Edison International ............... 69,100 1,848,425
Entergy Corp. ...................... 48,300 1,509,375
FirstEnergy Corp. .................. 46,400 1,438,400
Florida Progress Corp. ............. 21,100 871,694
FPL Group, Inc. .................... 36,400 1,988,350
GPU, Inc. .......................... 29,200 1,231,875
New Century Energies, Inc. ......... 29,600 1,148,850
Northern States Power Co. .......... 46,100 1,115,044
Pacificorp. ........................ 65,000 1,194,375
Peco Energy Corp. .................. 45,100 1,888,562
PG&E Corp. ......................... 76,900 2,499,250
PP&L Resources, Inc. ............... 40,900 1,257,675
Public Service Enterprise Group..... 43,700 1,786,237
Reliant Energy, Inc. ............... 55,700 1,538,713
Sempra Energy ...................... 57,300 1,296,413
Texas Utilities Co. ................ 56,800 2,343,000
Unicom Corporation ................. 42,600 1,642,762
--------------
45,575,979
--------------
UTILITY--GAS (0.4%)
Columbia Gas System, Inc. .......... 23,200 1,454,350
Consolidated Natural Gas Co. ....... 20,800 1,263,600
ENRON Corp. ........................ 71,300 5,828,775
--------------
8,546,725
--------------
UTILITY--TELEPHONE (6.5%)
Alltel Corp. ....................... 55,100 3,939,650
Ameritech Corp. .................... 224,800 16,522,800
AT&T Corp. ......................... 643,848 35,934,777
Bell Atlantic Corp. ................ 317,592 20,762,577
BellSouth Corp. .................... 398,900 18,698,437
CenturyTel, Inc. ................... 29,100 1,156,725
Frontier Corp. ..................... 33,000 1,947,000
GTE Corp. .......................... 197,400 14,953,050
SBC Communications, Inc. ........... 399,900 23,194,200
Sprint Corp. (FON Group) ........... 182,800 9,654,125
US West, Inc. ...................... 102,933 6,047,314
--------------
152,810,655
--------------
TOTAL CREDIT SENSITIVE (24.2%) 568,932,923
--------------
ENERGY
COAL & GAS PIPELINES (0.4%)
Burlington Resources, Inc. ......... 36,930 1,597,222
Coastal Corp. ...................... 41,700 1,668,000
Sonat, Inc. ........................ 32,300 1,069,938
Tenneco, Inc. ...................... 36,600 873,825
Williams Cos., Inc. ................ 86,000 3,660,375
--------------
8,869,360
--------------
OIL--DOMESTIC (0.8%)
Amerada Hess Corp. ................. 19,100 1,136,450
Anadarko Petroleum Corp. ........... 33,800 1,244,263
Apache Corp. ....................... 32,800 1,279,200
Ashland, Inc. ...................... 25,500 1,023,188
Atlantic Richfield Co. ............. 64,600 5,398,137
</TABLE>
24
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
Kerr-McGee Corp. ................... 26,200 $ 1,314,912
Occidental Petroleum Corp. ......... 67,200 1,419,600
Phillips Petroleum Co. ............. 51,400 2,586,062
Sunoco, Inc. ....................... 29,800 899,588
Unocal Corp. ....................... 47,800 1,894,075
USX-Marathon Group, Inc. ........... 59,300 1,930,956
--------------
20,126,431
--------------
OIL--INTERNATIONAL (4.3%)
Chevron Corp. ...................... 133,900 12,745,606
Exxon Corp. ........................ 499,000 38,485,375
Mobil Corp. ........................ 160,100 15,849,900
Royal Dutch Petroleum Co.
(New York Shares) ................ 440,100 26,516,025
Texaco, Inc. ....................... 107,400 6,712,500
--------------
100,309,406
--------------
OIL--SUPPLIES & CONSTRUCTION (0.5%)
Baker Hughes, Inc. ................. 68,100 2,281,350
Halliburton Co. .................... 86,300 3,905,075
Schlumberger Ltd. .................. 109,600 6,980,150
--------------
13,166,575
--------------
RAILROADS (0.5%)
Burlington Northern Santa Fe ....... 95,953 2,974,543
CSX Corp. .......................... 41,600 1,885,000
Kansas City Southern Industries,
Inc. ............................. 21,200 1,352,825
Norfolk Southern Corp. ............. 77,600 2,337,700
Union Pacific Corp. ................ 48,800 2,845,650
--------------
11,395,718
--------------
TOTAL ENERGY (6.5%) ............... 153,867,490
--------------
TECHNOLOGY
ELECTRONICS (6.1%)
Applied Materials, Inc.* ........... 75,500 5,577,562
BB&T Corp. ......................... 62,200 2,281,962
BMC Software, Inc.* ................ 48,300 2,608,200
Cisco Systems, Inc.* ............... 644,050 41,541,225
EMC Corp.* ......................... 205,400 11,297,000
Harris Corp. ....................... 29,300 1,148,194
Intel Corp. ........................ 682,500 40,608,750
ITT Industries, Inc. ............... 28,700 1,094,188
KLA-Tencor Corp.* .................. 20,800 1,349,400
LSI Logic Corp.* ................... 28,600 1,319,175
Micron Technology, Inc.* ........... 48,700 1,963,219
Motorola, Inc. ..................... 122,900 11,644,775
National Semiconductor Corp.* ...... 51,000 1,290,937
Network Appliance, Inc.* ........... 13,900 776,663
Parametric Technology Corp.* ....... 88,800 1,232,100
Seagate Technology, Inc.* .......... 48,000 1,230,000
Solectron Corp.* ................... 51,300 3,421,069
Texas Instruments, Inc. ............ 79,800 11,571,000
3Com Corp.* ........................ 73,400 1,958,862
--------------
143,914,281
--------------
OFFICE EQUIPMENT (5.4%)
Apple Computer, Inc.* .............. 28,200 1,306,013
Ceridian Corp.* .................... 30,700 1,003,506
Compaq Computer Corp. .............. 345,298 8,179,246
Compuware Corp.* ................... 75,200 2,392,300
Dell Computer Corp.* ............... 520,900 19,273,300
Hewlett-Packard Co. ................ 207,800 20,883,900
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
International Business Machines
Corp. ............................ 377,800 $ 48,830,650
PeopleSoft, Inc.* .................. 80,500 1,388,625
Pitney Bowes, Inc. ................. 54,600 3,508,050
Sun Microsystems, Inc.* ............ 157,700 10,861,587
Unisys Corp.* ...................... 53,400 2,079,263
Xerox Corp. ........................ 134,300 7,932,094
--------------
127,638,534
--------------
OFFICE EQUIPMENT SERVICES (5.9%)
Adobe Systems, Inc. ................ 17,100 1,404,872
Automatic Data Processing, Inc...... 122,900 5,407,600
Computer Associates
International, Inc. .............. 109,925 6,045,875
Computer Sciences Corp.* ........... 31,400 2,172,488
Electronic Data Systems Corp. ...... 100,900 5,707,156
First Data Corp. ................... 90,300 4,419,056
Gateway 2000, Inc.* ................ 30,900 1,823,100
McKesson HBOC, Inc. ................ 51,800 1,664,075
Microsoft Corp.* ................... 1,028,500 92,757,844
Novell, Inc.* ...................... 64,900 1,719,850
Oracle Corp.* ...................... 294,730 10,941,851
Paychex, Inc. ...................... 48,600 1,549,125
Silicon Graphics, Inc.* ............ 87,000 1,424,625
--------------
137,037,517
--------------
TELECOMMUNICATIONS (5.2%)
America Online, Inc.* .............. 209,500 23,149,750
Lucent Technologies, Inc. .......... 612,951 41,335,883
MCI WorldCom, Inc.* ................ 375,100 32,352,375
Nextel Communications, Inc.
(Class A)* ....................... 56,500 2,835,594
Nortel Networks Corp. .............. 135,820 11,790,874
Sprint Corp. (PCS Group)* .......... 88,100 5,032,712
Tellabs, Inc.* ..................... 77,800 5,256,362
--------------
121,753,550
--------------
TOTAL TECHNOLOGY (22.6%) .......... 530,343,882
--------------
DIVERSIFIED
MISCELLANEOUS (1.4%)
Corning, Inc. ...................... 47,800 3,351,975
Honeywell, Inc. .................... 25,800 2,989,575
Minnesota Mining &
Manufacturing Co. ................ 82,900 7,207,119
Textron, Inc. ...................... 31,400 2,584,613
Tyco International Ltd. ............ 166,550 15,780,612
--------------
TOTAL DIVERSIFIED (1.4%) .......... 31,913,894
--------------
TOTAL COMMON STOCKS (97.3%)
(Cost $1,559,506,653)............. 2,286,479,724
--------------
PRINCIPAL
AMOUNT
------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT & AGENCIES
Federal Home Loan Bank
4.6%, due 07/01/99 ............... $48,000,000 48,000,000
U.S. Treasury Bill
4.32%, due 07/08/99** ............ 3,700,000 3,697,318
--------------
TOTAL U.S. GOVERNMENT &
AGENCIES (2.2%) ................. 51,697,318
--------------
</TABLE>
25
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
VALUE
(NOTE 1)
-----------------
<S> <C>
TOTAL SHORT-TERM DEBT SECURITIES (2.2%)
(Amortized Cost $51,696,894).......... $ 51,697,318
--------------
TOTAL INVESTMENTS (99.5%)
(Cost/Amortized Cost
$1,611,203,547)....................... 2,338,177,042
OTHER ASSETS
LESS LIABILITIES (0.5%) .............. 12,305,266
--------------
NET ASSETS (100.0%) .................... $2,350,482,308
==============
</TABLE>
- ----------
Financial Futures Contracts outstanding at June 30, 1999:
<TABLE>
<CAPTION>
EXPIRATION NUMBER ORIGINAL VALUE AT UNREALIZED
DESCRIPTION DATE OF CONTRACTS VALUE 6/30/99 APPRECIATION
- ----------------------------- ------------ -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Long S&P 500 Index* ......... 9/99 172 $57,304,550 $59,413,100 $2,108,550
</TABLE>
- ----------
* Non-income producing.
** Security segregated as collateral on financial futures contracts.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
26
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (10.0%)
AT&T Corp.--Liberty Media
Group--A(a)* ....................... 18,683,702 $ 686,626,048
CBS Corp.(a)* ........................ 5,260,000 228,481,250
Chris Craft Industries, Inc.
(Class B)*+ ........................ 1,229,799 57,954,292
Comcast Corp. (Class A) SPL(a)........ 3,323,600 127,750,875
MediaOne Group, Inc.(a)* ............. 1,565,000 116,396,875
News Corp. Ltd. (ADR)(a) ............. 3,830,200 135,253,938
Reuters Group PLC (ADR) .............. 1,061,880 86,078,648
Time Warner, Inc. .................... 257,800 18,948,300
Viacom, Inc. (Class B)* .............. 1,081,600 47,590,400
---------------
TOTAL BUSINESS SERVICES (10.0%) 1,505,080,626
---------------
CAPITAL GOODS
AEROSPACE (2.3%)
General Motors Corp.
(Class H)(a)* ...................... 421,700 23,720,625
Loral Space &
Communications(a)*+ ................ 17,537,700 315,678,600
---------------
339,399,225
---------------
ELECTRICAL EQUIPMENT (0.4%)
Koninklijke (Royal) Philips
Electronics N.V.
(New York Shares)(a) ............... 654,120 65,984,355
---------------
TOTAL CAPITAL GOODS (2.7%) ......... 405,383,580
---------------
CONSUMER CYCLICALS
AIRLINES (1.7%)
AMR Corp.* ........................... 495,000 33,783,750
Continental Airlines, Inc.
(Class B)* ......................... 650,000 24,456,250
Delta Air Lines, Inc. ................ 2,266,300 130,595,538
Northwest Airlines Corp.* ............ 445,800 14,488,500
UAL Corp.* ........................... 850,000 55,250,000
---------------
258,574,038
---------------
AUTO RELATED (0.5%)
AutoNation, Inc.* .................... 4,588,400 81,730,875
---------------
FOOD SERVICES, LODGING (0.2%)
Starwood Hotels & Resorts ............ 869,151 26,563,427
---------------
HOUSEHOLD FURNITURE,
APPLIANCES (0.2%)
Newell Rubbermaid, Inc.(a) ........... 500,000 23,250,000
---------------
LEISURE RELATED (2.3%)
Carnival Corp. (Class A) ............. 1,282,200 62,186,700
Cendant Corp.(a)* .................... 13,979,850 286,586,925
---------------
348,773,625
---------------
RETAIL--GENERAL (3.9%)
Home Depot, Inc.(a) .................. 4,144,000 267,029,000
Limited, Inc.(a) ..................... 2,489,475 112,959,928
Lowe's Cos., Inc. .................... 502,800 28,502,475
Office Depot, Inc.* .................. 1,497,500 33,038,594
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------------
<S> <C> <C>
Tandy Corp.(a) ....................... 1,681,600 $ 82,188,200
Wal-Mart Stores, Inc. ................ 1,361,000 65,668,250
---------------
589,386,447
---------------
TOTAL CONSUMER CYCLICALS (8.8%) 1,328,278,412
---------------
CONSUMER NONCYCLICALS
BEVERAGES (0.3%)
Pepsi Bottling Group, Inc. ........... 1,801,400 41,544,787
---------------
DRUGS (4.8%)
AstraZeneca Group PLC ................ 1,218,035 47,605,355
Bristol-Myers Squibb Co. ............. 4,064,000 286,258,000
Merck & Co., Inc. .................... 3,006,400 222,473,600
Pfizer, Inc.(a) ...................... 600,000 65,850,000
Schering-Plough Corp. ................ 1,791,000 94,923,000
---------------
717,109,955
---------------
HOSPITAL SUPPLIES & SERVICES (0.9%)
Abbott Laboratories .................. 1,418,600 64,546,300
Columbia/HCA Healthcare
Corp.(a) ........................... 1,975,000 45,054,688
LifePoint Hospitals, Inc.* ........... 103,944 1,396,751
Medtronic, Inc. ...................... 357,800 27,863,675
Triad Hospitals, Inc.* ............... 103,944 1,403,247
---------------
140,264,661
---------------
SOAPS & TOILETRIES (0.2%)
Gillette Co. ......................... 600,000 24,600,000
---------------
TOBACCO (2.1%)
Loews Corp. .......................... 1,993,500 157,735,687
Philip Morris Cos., Inc. ............. 3,925,200 157,743,975
---------------
315,479,662
---------------
TOTAL CONSUMER NONCYCLICALS (8.3%) 1,238,999,065
---------------
CREDIT SENSITIVE
BANKS (11.8%)
Bank of America Corp. ................ 6,452,700 473,063,569
Bank of Tokyo-Mitsubishi Ltd. ........ 5,395,100 78,566,144
Bank One Corp. ....................... 3,344,000 199,177,000
Chase Manhattan Corp. ................ 4,504,836 390,231,418
Citigroup, Inc.(a) ................... 11,128,196 528,589,298
First Union Corp. .................... 1,680,000 78,960,000
Wells Fargo Co. ...................... 700,000 29,925,000
---------------
1,778,512,429
---------------
FINANCIAL SERVICES (7.4%)
American Express Co. ................. 637,400 82,941,675
Associates First Capital Corp.
(Class A) .......................... 5,169,000 229,051,312
Fleet Financial Group, Inc. .......... 134,200 5,955,125
Goldman Sachs Group, Inc.* ........... 240,300 17,361,675
Household International, Inc. ........ 2,555,400 121,062,075
MBNA Corp. ........................... 14,626,187 447,926,977
Morgan Stanley Dean Witter &
Co.(a) ............................. 1,033,166 105,899,515
Newcourt Credit Group, Inc. .......... 169,200 2,189,025
PMI Group, Inc.(a) ................... 1,492,200 93,728,813
---------------
1,106,116,192
---------------
</TABLE>
27
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------------
<S> <C> <C>
INSURANCE (5.8%)
Ace Ltd. ............................ 200,000 $ 5,650,000
Allstate Corp. ...................... 443,294 15,903,172
American International Group,
Inc.(a) ........................... 5,117,712 599,092,161
Hartford Financial Services
Group, Inc. ....................... 1,042,200 60,773,288
Progressive Corp. ................... 449,900 65,235,500
Providian Financial Corp.(a) ........ 1,225,000 114,537,500
UnumProvident Corp. ................. 99,000 5,420,250
---------------
866,611,871
---------------
REAL ESTATE (0.9%)
CBL & Associates Properties,
Inc. .............................. 792,200 20,894,275
Macerich Co. ........................ 682,500 17,915,625
Simon Property Group, Inc. .......... 1,418,000 35,981,750
Spieker Properties, Inc. ............ 1,373,400 53,390,925
Summit Properties, Inc. ............. 429,100 8,474,725
---------------
136,657,300
---------------
UTILITY--TELEPHONE (3.2%)
AT&T Corp. .......................... 4,915,332 274,336,963
BellSouth Corp. ..................... 21,648 1,014,750
Cable & Wireless PLC ................ 1,485,000 18,939,355
Sprint Corp. (FON Group)(a) ......... 3,440,400 181,696,125
Telecomunicacoes Brasileiras
S.A. - Telebras (ADR)* ............ 500,000 31,250
---------------
476,018,443
---------------
TOTAL CREDIT SENSITIVE (29.1%)..... 4,363,916,235
---------------
ENERGY
OIL--DOMESTIC (2.5%)
Atlantic Richfield Co. .............. 4,475,200 373,958,900
Union Pacific Resources Group,
Inc. .............................. 405,154 6,609,075
---------------
380,567,975
---------------
OIL--INTERNATIONAL (0.7%)
Royal Dutch Petroleum Co.
(New York Shares) ................. 600,000 36,150,000
Total Fina SA (ADR) ................. 1,143,850 73,706,834
---------------
109,856,834
---------------
OIL--SUPPLIES & CONSTRUCTION (0.2%)
Nabors Industries, Inc.* ............ 40,300 984,831
Transocean Offshore, Inc. ........... 915,800 24,039,750
---------------
25,024,581
---------------
RAILROADS (0.2%)
Canadian Pacific Ltd. ............... 967,800 23,045,738
---------------
TOTAL ENERGY (3.6%) ............... 538,495,128
---------------
TECHNOLOGY
ELECTRONICS (7.5%)
Altera Corp.* ....................... 575,000 21,167,188
Cisco Systems, Inc.* ................ 309,500 19,962,750
Ingram Micro, Inc.
(Class A)(a)*+ .................... 3,452,000 88,889,000
Intel Corp.(a) ...................... 5,550,000 330,225,000
National Semiconductor
Corp.(a)* ......................... 210,000 5,315,625
Network Associates, Inc.(a)* ........ 4,341,400 63,764,312
SCI Systems, Inc.(a)*+ .............. 6,287,500 298,656,250
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------------
<S> <C> <C>
Solectron Corp.(a)* ................. 2,220,000 $ 148,046,250
Sterling Commerce, Inc.* ............ 3,228,582 117,843,243
Texas Instruments, Inc.(a) .......... 170,000 24,650,000
---------------
1,118,519,618
---------------
OFFICE EQUIPMENT (8.2%)
Ceridian Corp.*+ .................... 7,730,000 252,674,375
Compaq Computer Corp.(a) ............ 2,505,000 59,337,187
International Business Machines
Corp.(a) .......................... 6,900,000 891,825,000
Sterling Software, Inc.* ............ 1,172,400 31,288,425
---------------
1,235,124,987
---------------
OFFICE EQUIPMENT SERVICES (2.5%)
First Data Corp. .................... 2,215,000 108,396,563
McKesson HBOC, Inc.(a) .............. 7,424,250 238,504,031
Oracle Corp.(a)* .................... 950,000 35,268,750
---------------
382,169,344
---------------
TELECOMMUNICATIONS (13.0%)
ADC Telecommunications, Inc.*........ 1,115,000 50,802,202
Global TeleSystems Group, Inc.*...... 693,700 56,189,700
Globalstar Telecommunications
Ltd.(a)* .......................... 300,000 6,956,250
Lucent Technologies, Inc. ........... 38,000 2,562,625
Mannesmann AG ....................... 2,853,245 427,185,409
Mannesmann AG (ADR) ................. 1,022,000 152,823,646
MCI WorldCom, Inc.(a)* .............. 6,926,815 597,437,794
Nextel Communications, Inc.
(Class A)(a)* ..................... 6,715,400 337,029,137
Nokia Oyj (A Shares)(a) ............. 1,234,200 113,006,437
Orange PLC (ADR)* ................... 2,475,000 186,862,500
Vodafone AirTouch PLC (ADR).......... 122,300 24,093,100
---------------
1,954,948,800
---------------
TOTAL TECHNOLOGY (31.2%) .......... 4,690,762,749
---------------
DIVERSIFIED
MISCELLANEOUS (3.6%)
Honeywell, Inc.(a) .................. 1,000,000 115,875,000
Tyco International Ltd.(a) .......... 4,513,336 427,638,587
---------------
TOTAL DIVERSIFIED (3.6%) .......... 543,513,587
---------------
TOTAL COMMON STOCKS (97.3%)
(Cost $10,243,273,273)............. 14,614,429,382
---------------
PREFERRED STOCKS:
CONSUMER CYCLICALS (0.1%)
AUTO RELATED
Republic Industries, Inc.
6.5% Exch. Conv. .................. 445,400 8,017,200
---------------
TOTAL PREFERRED STOCKS (0.1%)
(Cost $10,964,872)................. 8,017,200
---------------
PRINCIPAL
AMOUNT
------
LONG-TERM DEBT SECURITIES:
TECHNOLOGY
TELECOMMUNICATIONS (0.2%)
Global TeleSystems Group, Inc.
5.75% Conv., 07/01/10 ............. $14,445,000 22,931,437
</TABLE>
28
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
Nextel Communications, Inc.
4.75% Conv., 07/01/07 ............... $ 6,500,000 $ 7,897,500
--------------
TOTAL TECHNOLOGY (0.2%) ............. 30,828,937
--------------
TOTAL LONG-TERM DEBT SECURITIES (0.2%)
(Amortized Cost $17,666,247)......... 30,828,937
--------------
SHORT-TERM DEBT SECURITIES:
BANKERS ACCEPTANCES
Chase Manhattan Corp.
4.85%, due 07/12/99 ................. 25,032,785 24,995,765
5.1%, due 07/28/99 .................. 36,010,818 35,873,616
First Union Bank
4.92%, due 07/26/99 ................. 28,000,000 27,904,722
KeyCorp.
4.9%, due 07/09/99 .................. 5,000,000 4,994,567
--------------
TOTAL BANKERS ACCEPTANCES (0.6%) 93,768,670
--------------
COMMERCIAL PAPER
Banco Santander SA
10.42%, due 07/30/99 ................ 8,279,000 8,244,387
Bell Atlantic Corp.
10.44%, due 07/14/99 ................ 24,000,000 23,954,846
Bell Atlantic Network Funding
5.1%, due 07/21/99 .................. 24,340,000 24,271,171
BellSouth Corp.
5.09%, due 07/29/99 ................. 9,000,000 8,964,510
Cargill, Inc.
5.7%, due 07/01/99 .................. 3,600,000 3,600,000
Exxon Financial Services
10.46%, due 07/15/99 ................ 11,000,000 10,977,670
Ford Motor Credit Co.
5.75%, due 07/01/99 ................. 45,000,000 45,000,000
Household Finance Corp.
5.17%, due 07/30/99 ................. 50,000,000 49,792,570
Koch Industries
5.52%, due 07/01/99 ................. 55,000,000 55,000,000
Morgan Stanley Group, Inc.
5.75%, due 07/01/99 ................. 2,900,000 2,900,000
Teachers Insurance and Annuity
Association:
4.83%, due 07/01/99 ................. 27,000,000 27,000,000
4.85%, due 07/12/99 ................. 5,000,000 4,992,606
5.0%, due 07/30/99 .................. 25,000,000 24,899,708
--------------
TOTAL COMMERCIAL PAPER (1.9%) 289,597,468
--------------
TIME DEPOSITS
Canadian Imperial Bank
5.75%, due 07/01/99 ................. 44,000,000 44,000,000
Societe Generale
4.58%, due 07/01/99 ................. 207,500,000 207,500,001
Westdeutsche Landesbank
5.81%, due 07/01/99 ................. 44,000,000 44,000,000
--------------
TOTAL TIME DEPOSITS (2.0%) .......... 295,500,001
--------------
U.S. GOVERNMENT AGENCIES (0.0%)
Federal Home Loan Bank
4.47%, due 07/01/99 ................. 400,000 400,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (4.5%)
(Amortized Cost $679,266,139) 679,266,139
--------------
TOTAL INVESTMENTS (102.1%)
(Cost/Amortized Cost $10,951,170,531) 15,332,541,658
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NUMBER OF VALUE
CONTRACTS (B) (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
CALL OPTIONS WRITTEN*(c):
American International Group,
Inc.:
July @ $110.625...................... 1,000 $ (859,000)
July @ $113.78....................... 3,000 (1,659,030)
AT&T Corp.--Liberty Media
Group--A:
August @ $54.3656.................... 5,000 (1,850,000)
August @ $70.39...................... 6,000 (1,890,000)
CBS Corp.:
July @ $40.375....................... 2,500 (965,278)
July @ $42.25........................ 2,500 (657,325)
August @ $42.125..................... 2,000 (734,000)
August @ $42.50...................... 3,000 (788,220)
August @ $43.00...................... 2,500 (596,825)
August @ $43.25...................... 3,000 (671,580)
Cendant Corp.:
August @ $18.00...................... 2,500 (770,000)
August @ $19.00...................... 2,000 (518,000)
August @ $19.4375.................... 2,000 (484,000)
August @ $19.6875.................... 2,500 (542,500)
Citigroup, Inc.:
July @ $40.3125...................... 3,000 (2,244,000)
July @ $64.75........................ 4,000 (1,867,880)
Columbia/HCA Healthcare
Corp.:
July @ $24.625....................... 3,000 (195,000)
July @ $25.00........................ 3,000 (117,000)
July @ $25.11........................ 1,000 (19,540)
July @ $25.125....................... 1,500 (28,935)
August @ $22.375..................... 2,000 (416,000)
Comcast Corp.:
July @ $37.90........................ 2,000 (447,780)
August @ $33.4375.................... 2,000 (1,132,000)
August @ $36.625..................... 2,000 (742,500)
August @ $36.875..................... 2,500 (772,472)
August @ $37.4977.................... 2,000 (692,000)
August @ $38.50...................... 2,500 (652,002)
Compaq Computer Corp.:
July @ $24.00........................ 2,000 (184,000)
July @ $25.00........................ 3,000 (192,000)
July @ $25.50........................ 2,000 (100,000)
August @ $21.50...................... 1,500 (439,965)
August @ $22.0706.................... 2,000 (560,000)
August @ $23.1377.................... 2,500 (547,500)
August @ $23.25...................... 2,000 (398,834)
General Motors Corp.
August @ $52.50...................... 2,000 (1,038,000)
Globalstar Telecommunications
Ltd.
August @ $21.125..................... 3,000 (1,067,700)
Home Depot, Inc.:
July @ $55.75........................ 3,000 (2,713,440)
July @ $56.50........................ 2,000 (1,636,320)
August @ $56.00...................... 1,500 (1,368,735)
Honeywell, Inc.:
August @ $113.375.................... 3,000 (2,082,000)
August @ $113.75..................... 1,500 (1,122,000)
August @ $114.00..................... 3,000 (2,244,000)
August @ $116.625.................... 2,500 (1,507,500)
</TABLE>
29
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
NUMBER OF VALUE
CONTRACTS (b) (NOTE 1)
- --------------------------------------------------------------------
<S> <C> <C>
International Business Machines
Corp.:
July @ $228.8055............. 6,000 $ (9,480,000)
July @ $237.50............... 4,000 (4,716,000)
Ingram Micro, Inc. (Class A):
August @ $26.625............. 2,500 (453,155)
August @ $28.0625............ 3,000 (585,000)
Intel Corp.:
July @ $52.00................ 2,500 (2,067,500)
July @ $55.875............... 2,500 (1,247,500)
July @ $61.0975.............. 3,000 (360,888)
July @ $61.0975.............. 4,000 (628,684)
July @ $61.250............... 6,000 (720,000)
July @ $61.3125.............. 2,500 (432,500)
August @ $50.625............. 2,500 (2,422,500)
August @ $55.5625............ 2,000 (1,194,258)
Koninklijke (Royal) Philips
Electronics N.V.:
July @ $85.6875.............. 1,500 (1,468,500)
August @ $92.25.............. 1,000 (1,054,000)
August @ $97.4375............ 1,500 (1,219,500)
Limited, Inc.:
July @ $48.39................ 1,500 (187,500)
August @ $44.625............. 2,000 (713,500)
August @ $44.75.............. 2,500 (833,875)
Loral Space & Communications:
July @ $16.25................ 3,000 (744,000)
July @ $16.75................ 2,000 (355,300)
July @ $17.00................ 1,500 (232,500)
July @ $17.00................ 1,500 (222,000)
July @ $18.50................ 3,000 (156,000)
July @ $19.00................ 2,500 (130,525)
July @ $19.25................ 2,000 (64,460)
July @ $20.50................ 2,500 (56,575)
August @ $16.625............. 3,000 (666,000)
August @ $17.00.............. 3,000 (618,480)
August @ $17.25.............. 2,500 (462,475)
August @ $17.375............. 2,000 (348,686)
August @ $17.375............. 2,000 (398,200)
August @ $17.4375............ 2,000 (385,090)
August @ $17.9939............ 2,500 (445,000)
MCI WorldCom, Inc.:
July @ $83.41................ 2,000 (1,084,000)
July @ $84.875............... 2,500 (1,165,000)
July @ $85.6178.............. 2,000 (778,520)
August @ $89.75.............. 2,500 (893,850)
August @ $93.377............. 2,000 (538,000)
McKesson HBOC, Inc.:
July @ $37.50................ 2,500 (22,500)
July @ $38.625............... 2,000 (30,000)
August @ $36.125............. 2,500 (186,225)
MediaOne Group, Inc.:
July @ $36.25................ 2,000 (702,000)
July @ $73.5625.............. 1,000 (213,000)
August @ $71.875............. 3,500 (1,533,000)
August @ $73.625............. 1,500 (451,500)
Morgan Stanley Dean Witter & Co.:
August @ $85.875............. 3,000 (5,340,000)
August @ $93.25.............. 1,000 (1,316,000)
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
NUMBER OF VALUE
CONTRACTS (b) (NOTE 1)
- --------------------------------------------------------------------
<S> <C> <C>
National Semiconductor Corp.:
July @ $18.50................ 1,000 $ (700,830)
July @ $21.9375.............. 1,000 (393,500)
Network Associates, Inc.:
July @ $12.77................ 1,650 (358,809)
July @ $12.91................ 850 (174,394)
July @ $14.125............... 3,000 (435,000)
July @ $15.375............... 3,000 (238,425)
August @ $13.0625............ 3,000 (783,810)
August @ $13.125............. 2,000 (452,980)
August @ $14.9375............ 2,500 (407,500)
Newell Rubbermaid, Inc.:
August @ $44.00.............. 3,000 (1,119,000)
August @ $46.25.............. 2,000 (514,000)
News Corp. Ltd.:
July @ $34.50................ 300 (44,349)
August @ $34.4375............ 3,000 (768,330)
August @ $34.875............. 3,000 (795,000)
August @ $35.2778............ 3,000 (628,110)
Nextel Communications, Inc.:
July @ $34.75................ 2,000 (3,109,060)
July @ $35.30................ 3,000 (4,527,000)
July @ $35.625............... 2,000 (2,918,720)
July @ $35.75................ 3,000 (4,349,970)
July @ $35.75................ 4,000 (5,787,480)
July @ $36.25................ 2,500 (3,530,000)
July @ $36.25................ 3,000 (4,234,002)
July @ $39.5583.............. 2,500 (2,660,250)
August @ $35.875............. 2,500 (3,680,000)
August @ $36.3125............ 2,500 (3,522,728)
August @ $36.867............. 3,000 (4,065,000)
August @ $38.00.............. 2,000 (2,552,000)
August @ $45.00.............. 1,500 (1,051,290)
August @ $45.625............. 2,000 (1,260,000)
Nokia Oyj
August @ $81.25.............. 3,000 (3,711,000)
Oracle Corp.:
August @ $32.2927............ 3,000 (1,833,150)
August @ $34.625............. 3,500 (1,507,905)
August @ $36.375............. 3,000 (1,098,969)
Pfizer, Inc.:
August @ $95.3794............ 2,000 (3,136,000)
August @ $100.25............. 4,000 (5,088,440)
PMI Group, Inc.:
August @ $58.25.............. 2,000 (1,369,620)
August @ $60.25.............. 1,500 (879,570)
Providian Financial Corp.:
August @ $77.7129............ 1,800 (3,176,784)
August @ $77.7292............ 1,500 (2,580,150)
August @ $78.2369............ 700 (1,205,113)
August @ $87.125............. 3,000 (3,564,000)
August @ $87.875............. 3,000 (2,690,310)
SCI Systems, Inc.:
July @ $38.50................ 2,500 (2,432,500)
July @ $38.875............... 3,000 (2,607,450)
August @ $46.125............. 2,000 (890,120)
August @ $46.75.............. 2,000 (864,000)
August @ $48.375............. 2,500 (825,275)
</TABLE>
30
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
NUMBER OF VALUE
CONTRACTS (b) (NOTE 1)
- ------------------------------------------------------------------------
<S> <C> <C>
Solectron Corp.:
July @ $52.993.................... 8,000 $ (11,176,000)
July @ $54.00..................... 3,000 (3,914,130)
July @ $56.6528................... 2,000 (2,012,000)
August @ $56.625.................. 2,500 (2,724,600)
August @ $60.0166................. 1,000 (926,000)
August @ $64.0625................. 1,000 (647,000)
Sprint Corp. (FON Group):
July @ $107.00.................... 4,000 (604,000)
July @ $108.00.................... 1,950 (21,216)
July @ $108.1222.................. 1,250 (12,387)
July @ $108.3125.................. 1,800 (15,372)
July @ $108.725................... 4,000 (464,000)
July @ $109.00.................... 5,000 (195,000)
July @ $110.875................... 5,000 (402,800)
Tandy Corp.:
August @ $84.375.................. 2,500 (1,855,958)
August @ $86.00................... 2,500 (1,688,068)
Texas Instruments, Inc.
July @ $105.08.................... 1,700 (6,852,496)
Tyco International Ltd.:
July @ $87.1875................... 1,500 (1,315,677)
July @ $87.9375................... 2,000 (1,444,060)
July @ $90.375.................... 1,500 (802,500)
August @ $87.50................... 3,000 (2,795,400)
August @ $88.875.................. 2,000 (1,714,000)
August @ $89.9375................. 3,000 (2,254,953)
August @ $93.75................... 1,000 (562,000)
August @ $99.75................... 2,500 (1,556,975)
-----------------
TOTAL CALL OPTIONS WRITTEN (-1.5%)
(Premiums Received $147,756,325) (229,317,092)
-----------------
OTHER ASSETS
LESS LIABILITIES (-0.6%) ......... (87,992,863)
-----------------
NET ASSETS (100.0%) ................ $ 15,015,231,703
=================
</TABLE>
- ----------
* Non-income producing.
+ Affiliated company as defined under the Investment Company Act of 1940
(See Note 6).
(a) Fully or partially pledged as collateral on outstanding written call
options.
(b) One contract relates to 100 shares.
(c) Covered call option contracts written in connection with securities
held.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
31
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
CAPITAL GOODS
ELECTRICAL EQUIPMENT (0.9%)
Misys PLC ......................... 729,473 $ 6,248,385
Schneider SA ...................... 165,000 9,276,650
-----------
15,525,035
-----------
ENGINEERING & CONSTRUCTION (0.9%)
ABB Ltd.* ......................... 50,400 4,758,394
Daito Trust Construction Co. Ltd. 846,600 9,455,696
-----------
14,214,090
-----------
MACHINERY (0.8%)
Mannesmann AG ..................... 93,000 13,923,881
-----------
MISCELLANEOUS (1.1%)
United Technologies Corp. ......... 240,000 17,205,000
-----------
TOTAL CAPITAL GOODS (3.7%) ...... 60,868,006
-----------
CONSUMER MANUFACTURING
APPLIANCES (0.3%)
Sony Corp. ........................ 48,100 5,193,224
-----------
AUTO & RELATED (1.3%)
Autoliv, Inc. ..................... 22,800 697,272
Bridgestone Corp. ................. 306,000 9,265,823
DaimlerChrysler AG ................ 72,000 6,296,878
Honda Motor Co. Ltd. .............. 93,000 3,947,133
-----------
20,207,106
-----------
BUILDING & RELATED (0.2%)
CRH PLC ........................... 187,000 3,315,130
-----------
TOTAL CONSUMER MANUFACTURING (1.8%) 28,715,460
-----------
CONSUMER SERVICES
AIRLINES (0.4%)
British Airways PLC ............... 1,056,000 7,292,035
-----------
BROADCASTING & CABLE (5.4%)
AT&T Corp.--Liberty Media
Group--A* ....................... 1,573,388 57,822,009
CBS Corp.* ........................ 426,000 18,504,375
TVI Televisao Independente SA*..... 1,175 0
United Pan-Europe
Communications NV* .............. 217,000 11,785,685
-----------
88,112,069
-----------
ENTERTAINMENT & LEISURE (3.6%)
Carnival Corp. (Class A) .......... 360,000 17,460,000
Fuji Photo Film Co. ............... 206,000 7,805,742
Harley-Davidson, Inc. ............. 442,400 24,055,500
Time Warner, Inc. ................. 117,000 8,599,500
-----------
57,920,742
-----------
MISCELLANEOUS (1.5%)
Orange PLC* ....................... 787,350 11,550,731
Vodafone AirTouch PLC ............. 631,000 12,442,226
-----------
23,992,957
-----------
PRINTING & PUBLISHING (1.9%)
United News & Media PLC ........... 1,400,000 13,471,519
Wolters Kluwer N.V. ............... 420,000 16,739,633
-----------
30,211,152
-----------
RETAIL--GENERAL MERCHANDISE (3.6%)
Castorama Dubois .................. 5,580 1,325,169
Dixons Group PLC .................. 250,000 4,673,229
Home Depot, Inc. .................. 491,200 31,651,700
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------
<S> <C> <C>
Next PLC .......................... 484,700 $ 5,891,208
Wal-Mart Stores, Inc. ............. 300,000 14,475,000
-----------
58,016,306
-----------
TOTAL CONSUMER SERVICES (16.4%)
265,545,261
-----------
CONSUMER STAPLES
BEVERAGES (0.9%)
Coca-Cola Amatil Ltd. ............. 1,135,000 4,557,124
Diageo PLC ........................ 994,700 10,395,292
-----------
14,952,416
-----------
COSMETICS (2.0%)
Avon Products, Inc. ............... 295,000 16,372,500
Gillette Co. ...................... 267,400 10,963,400
Shiseido Co. Ltd. ................. 300,000 4,502,358
-----------
31,838,258
-----------
HOUSEHOLD PRODUCTS (0.8%)
Kao Corp. ......................... 431,000 12,123,769
-----------
RETAIL--FOOD & DRUG (2.1%)
Koninklijke Ahold NV .............. 540,000 18,622,997
Kroger Co.* ....................... 570,000 15,924,375
-----------
34,547,372
-----------
TOBACCO (3.7%)
Japan Tobacco, Inc. ............... 1,017 11,274,758
Philip Morris Cos., Inc. .......... 480,400 19,306,075
Seita ............................. 275,000 15,901,206
Tabacalera SA--A .................. 672,100 13,601,892
-----------
60,083,931
-----------
TOTAL CONSUMER STAPLES (9.5%) 153,545,746
-----------
ENERGY
DOMESTIC INTEGRATED (0.9%)
Total Fina SA--B .................. 114,950 14,848,262
-----------
INTERNATIONAL (0.2%)
ENI Spa ........................... 480,000 2,869,651
-----------
OIL SERVICE (1.7%)
Halliburton Co. ................... 378,900 17,145,225
Noble Drilling Corp.* ............. 297,000 5,847,188
Repsol SA ......................... 275,000 5,622,212
-----------
28,614,625
-----------
TOTAL ENERGY (2.8%) ............. 46,332,538
-----------
FINANCE
BANKING--MONEY CENTER (5.0%)
Banco Bilbao Vizcaya SA ........... 464,000 6,712,209
Bank of Tokyo-Mitsubishi Ltd. ..... 1,209,000 17,234,276
Chase Manhattan Corp. ............. 333,976 28,930,671
Development Bank of Singapore
Ltd. ............................ 131,000 1,600,611
National Australia Bank Ltd. ...... 380,000 6,264,301
Standard Chartered PLC ............ 824,900 13,480,927
UBS AG--Registered ................ 24,400 7,296,256
-----------
81,519,251
-----------
BANKING--REGIONAL (4.8%)
Bank of America Corp. ............. 347,100 25,446,769
Bank of Scotland .................. 1,285,000 17,027,116
ForeningsSparbanken AB ............ 643,800 9,122,210
Royal Bank of Scotland Group
PLC ............................. 857,000 17,466,345
Unicredito Italiano Spa ........... 1,900,000 8,357,426
-----------
77,419,866
-----------
</TABLE>
32
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------------------
<S> <C> <C>
BROKERAGE & MONEY MANAGEMENT (2.0%)
CMIC Finance & Securities
Public Co. Ltd.* .......................... 724,700 $ 0
Daiwa Securities Group, Inc. ................ 1,750,000 11,582,692
Morgan Stanley Dean Witter
& Co. ..................................... 200,300 20,530,750
-------------
32,113,442
-------------
INSURANCE (6.6%)
American International Group,
Inc. ...................................... 279,247 32,689,352
Citigroup, Inc. ............................. 824,548 39,166,030
ING Groep N.V. .............................. 363,000 19,677,743
Zurich Allied AG ............................ 26,500 15,096,990
-------------
106,630,115
-------------
MISCELLANEOUS (4.0%)
Associates First Capital Corp.
(Class A) ................................. 438,000 19,408,875
MBNA Corp. .................................. 837,150 25,637,719
Societe Generale (Class A) .................. 113,500 20,028,446
-------------
65,075,040
-------------
REAL ESTATE (0.5%)
Cheung Kong Holdings Ltd. ................... 472,000 4,197,827
Mandamus AB ................................. 485 2,577
Sun Hung Kai Properties Ltd. ................ 481,000 4,386,367
-------------
8,586,771
-------------
TOTAL FINANCE (22.9%) ..................... 371,344,485
-------------
HEALTHCARE
DRUGS (7.8%)
AstraZeneca Group PLC ....................... 121,080 4,687,116
Bristol-Myers Squibb Co. .................... 428,000 30,147,250
Novartis AG ................................. 5,858 8,569,736
Novartis AG (ADR) ........................... 20,000 1,460,192
Pfizer, Inc. ................................ 129,000 14,157,750
Sanofi--Synthelabo SA* ...................... 374,000 15,890,984
Santen Pharmaceutical Co. Ltd. .............. 530,000 10,216,762
Schering-Plough Corp. ....................... 309,000 16,377,000
Takeda Chemical Industries .................. 212,000 9,839,662
Yamanouchi Pharmaceutical Co.
Ltd. ...................................... 381,000 14,594,440
-------------
125,940,892
-------------
MEDICAL PRODUCTS (0.4%)
Medtronic, Inc. ............................. 91,000 7,086,625
-------------
MEDICAL SERVICES (0.0%)
McKesson HBOC, Inc. ......................... 25,500 819,188
-------------
TOTAL HEALTHCARE (8.2%) ................... 133,846,705
-------------
MULTI INDUSTRY COMPANIES
Citic Pacific Ltd. .......................... 427,000 1,362,186
Tyco International Ltd. ..................... 264,984 25,107,234
U.S. Industries, Inc. ....................... 345,000 5,865,000
-------------
TOTAL MULTI INDUSTRY COMPANIES (2.0%) 32,334,420
-------------
TECHNOLOGY
COMMUNICATION EQUIPMENT (3.4%)
Nokia Oyj ................................... 520,000 45,638,526
NTT Mobile Communications
Network, Inc.--NE* ........................ 772 10,346,985
-------------
55,985,511
-------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------------------
<S> <C> <C>
COMPUTER HARDWARE (3.1%)
Dell Computer Corp.* ........................ 608,000 $ 22,496,000
International Business Machines
Corp. ..................................... 212,000 27,401,000
-------------
49,897,000
-------------
COMPUTER SOFTWARE (2.8%)
Cap Gemini SA ............................... 67,000 10,543,119
Microsoft Corp.* ............................ 380,000 34,271,250
-------------
44,814,369
-------------
MISCELLANEOUS (6.5%)
Canon, Inc. ................................. 152,000 4,376,272
Equant N.V.* ................................ 100,000 9,412,500
Hoya Corp. .................................. 110,000 6,215,769
Korea Telecom Corp. (ADR)* .................. 111,701 4,468,040
Sanmina Corp.* .............................. 256,000 19,424,000
Solectron Corp.* ............................ 676,400 45,107,425
TDK Corp. ................................... 72,000 6,594,192
Tokyo Electron Ltd. ......................... 137,000 9,305,618
-------------
104,903,816
-------------
NETWORKING SOFTWARE (4.1%)
America Online, Inc.* ....................... 154,000 17,017,000
Cisco Systems, Inc.* ........................ 760,850 49,074,825
-------------
66,091,825
-------------
SEMICONDUCTOR COMPONENTS (1.7%)
Altera Corp.* ............................... 460,000 16,933,750
Intel Corp. ................................. 188,000 11,186,000
-------------
28,119,750
-------------
TOTAL TECHNOLOGY (21.6%) .................. 349,812,271
-------------
UTILITIES
MISCELLANEOUS (2.5%)
MCI WorldCom, Inc.* ......................... 480,097 41,408,366
-------------
TELEPHONE UTILITY (1.4%)
Hellenic Telecommunication
Organization SA ........................... 5,838 125,295
NTT Mobile Communications
Network, Inc. ............................. 193 2,618,681
SK Telecom Co. Ltd. (ADR) ................... 188,000 3,120,800
Telecomunicacoes Brasileiras
S.A.--Telebras (ADR)* ..................... 29,700 1,856
Telecomunicacoes Brasileiras
S.A.--Telebras (ADR) ...................... 29,700 2,678,569
Telefonica SA* .............................. 214,180 10,329,948
Telstra Corp. Ltd. .......................... 540,000 3,082,550
-------------
21,957,699
-------------
TOTAL UTILITIES (3.9%) .................... 63,366,065
-------------
TOTAL COMMON STOCKS (92.8%)
(Cost $1,084,321,784) ..................... 1,505,710,957
-------------
PREFERRED STOCKS:
CONSUMER SERVICES (0.2%)
RETAIL--GENERAL MERCHANDISE
Hornbach Holding AG ......................... 63,249 2,710,261
-------------
CONSUMER STAPLES (0.4%)
COSMETICS
Wella AG .................................... 9,130 6,504,729
-------------
TOTAL PREFERRED STOCKS (0.6%)
(Cost $13,357,143)......................... 9,214,990
-------------
</TABLE>
33
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
FINANCE (0.0%)
BANKING--REGIONAL
Grupo Financiero Banorte
Zero Coupon, 12/05/02 ............... $ 165,700 $ 17,585
--------------
TOTAL LONG-TERM DEBT SECURITIES (0.0%)
(Amortized Cost $20,239).............. 17,585
--------------
SHORT-TERM DEBT SECURITIES:
TIME DEPOSIT (4.5%)
Chase Nassau
4.62%, due 07/01/99 ................. 72,147,783 72,147,783
--------------
TOTAL SHORT-TERM DEBT SECURITIES (4.5%)
(Amortized Cost $72,147,783) 72,147,783
--------------
TOTAL INVESTMENTS (97.9%)
(Cost/Amortized Cost $1,169,846,949) 1,587,091,315
OTHER ASSETS
LESS LIABILITIES (2.1%) ............. 34,752,507
--------------
NET ASSETS (100.0%) ................... $1,621,843,822
==============
</TABLE>
<TABLE>
<S> <C>
DISTRIBUTION OF INVESTMENTS BY GLOBAL
REGION
As a Percentage of Total Investments
France ......................... 5.5%
Germany ........................ 1.9
Japan .......................... 10.5
Latin America .................. 1.3
Netherlands .................... 4.8
New Zealand & Australia ........ 0.9
Scandinavia .................... 3.5
Southeast Asia ................. 1.2
Spain .......................... 2.3
Switzerland .................... 2.3
United Kingdom ................. 9.6
United States** ................ 55.5
Other European Countries ....... 0.7
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Includes Short-Term Debt Securities of 4.5%.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
34
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND
OTHER INVESTMENTS:
AUSTRALIA
Broken Hill Proprietary Co. Ltd. 30,000 $ 346,185
Coca-Cola Amatil Ltd ............... 380,000 1,525,733
QCT Resources Ltd. ................. 185,000 107,350
Telstra Corp. Ltd. ................. 184,000 1,050,351
Woodside Petroleum Ltd. ............ 1,100 7,420
----------
TOTAL AUSTRALIA (1.2%) ........... 3,037,039
----------
AUSTRIA (0.1%)
OMV AG ............................. 3,000 267,915
----------
BELGIUM
Mobistar SA* ....................... 8,000 396,498
Virgin Express Holdings PLC
(ADR)* ........................... 50,000 456,250
----------
TOTAL BELGIUM (0.3%) ............. 852,748
----------
DENMARK (0.3%)
Coloplast A/S B .................... 7,000 719,325
----------
FINLAND
Fortum Oyj ......................... 52,301 253,275
Nokia Oyj .......................... 166,000 14,569,222
Sampo Insurance Co. (A Shares) 25,000 725,363
----------
TOTAL FINLAND (6.1%) ............. 15,547,860
----------
FRANCE
Banque Nationale de Paris .......... 700 58,401
Cap Gemini SA ...................... 23,000 3,619,280
Compagnie de St. Gobain ............ 250 39,882
Essilor International .............. 4,000 1,251,859
PSA Peugeot Citroen ................ 200 31,596
Sanofi-Synthelabo SA* .............. 124,000 5,268,668
Schneider SA ....................... 11,000 618,443
Seita .............................. 69,000 3,989,757
Societe Generale (Class A) ......... 37,000 6,529,097
Suez Lyonnaise des Eaux ............ 4,000 722,369
Total Fina SA--B ................... 15,480 1,999,575
----------
TOTAL FRANCE (9.4%) .............. 24,128,927
----------
GERMANY
Allianz AG ......................... 1,500 419,730
Apcoa Parking AG+ .................. 800 61,953
B.U.S. Berzelius Umwelt-Service
AG ............................... 25,200 307,038
DaimlerChrysler AG ................. 24,000 2,098,959
Deutsche Bank AG ................... 3,000 183,070
Mannesmann AG ...................... 36,000 5,389,889
----------
TOTAL GERMANY (3.3%) ............. 8,460,639
----------
GREECE (0.1%)
Hellenic Telecommunication
Organization SA .................. 17,138 367,822
----------
HONG KONG
Cheung Kong Holdings Ltd. .......... 50,000 444,685
Citic Pacific Ltd. ................. 154,000 491,281
Guangdong Kelon Electrical
Holdings Co. Ltd. ................ 800,000 933,194
HSBC Holdings PLC (H.K.$) .......... 9,200 335,589
JCG Holdings Ltd. .................. 250,000 119,227
----------
TOTAL HONG KONG (0.9%) ........... 2,323,976
----------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------
<S> <C> <C>
INDIA
Videsh Sanchar Nigam Ltd.
(GDR)*+ .......................... 1,000 $ 12,810
Videsh Sanchar Nigam Ltd.
(GDR) ............................ 44,000 563,750
----------
TOTAL INDIA (0.2%) ............... 576,560
----------
IRELAND
Bank of Ireland .................... 75,000 1,262,287
Irish Life & Permanent PLC ......... 121,700 1,288,024
----------
TOTAL IRELAND (1.0%) ............. 2,550,311
----------
ISRAEL (0.1%)
Home Centers Ltd. .................. 21,560 198,756
----------
ITALY
Banca Commerciale Italiana ......... 10,000 73,104
ENI Spa ............................ 320,000 1,913,101
Finmeccanica Spa* .................. 408,000 376,202
Industrie Natuzzi Spa (ADR) ........ 20,000 388,750
Telecom Italia Spa ................. 130,800 710,400
Unicredito Italiano Spa ............ 583,400 2,566,169
Unione Immobiliare Spa ............. 22,500 9,990
----------
TOTAL ITALY (2.4%) ............... 6,037,716
----------
JAPAN
Aiful Corp. ........................ 30,080 3,688,141
Bank of Tokyo-Mitsubishi Ltd. ...... 378,000 5,388,384
Bridgestone Corp. .................. 90,000 2,725,242
Canon, Inc. ........................ 14,000 403,078
Daito Trust Construction Co.
Ltd. ............................. 181,100 2,022,710
Daiwa Securities Group Inc. ........ 580,000 3,838,835
Data Communication System Co. 20 794
Fuji Photo Film Co. ................ 42,000 1,591,462
Honda Motor Co. Ltd. ............... 26,000 1,103,500
Hoya Corp. ......................... 35,000 1,977,745
Japan Tobacco, Inc. ................ 290 3,215,025
Kao Corp. .......................... 135,000 3,797,468
NTT Mobile Communications
Network, Inc. .................... 62 841,235
NTT Mobile Communications
Network, Inc.--NE* ............... 248 3,323,902
Santen Pharmaceutical Co. Ltd. ..... 106,000 2,043,352
Seven-Eleven Japan Co. Ltd. ........ 600 58,873
Sony Corp. ......................... 12,600 1,360,387
Takeda Chemical Industries ......... 62,000 2,877,637
TDK Corp. .......................... 24,000 2,198,064
Tokyo Electron Ltd. ................ 43,000 2,920,741
Yamanouchi Pharmaceutical Co.
Ltd. ............................. 130,000 4,979,730
----------
TOTAL JAPAN (19.7%) .............. 50,356,305
----------
KOREA (0.6%)
Korea Telecom Corp. (ADR)* ......... 34,726 1,389,040
----------
MALAYSIA**
Guinness Anchor BHD ................ 30,000 29,716
Kumpulan Guthrie BHD ............... 26,000 15,526
Lingkaran Trans Kota Holdings
BHD* ............................. 130,000 147,867
Malayan Banking BHD ................ 48,000 129,668
Metacorp BHD ....................... 90,000 68,246
Pernas International Hotels
Holdings BHD ..................... 280,000 104,834
</TABLE>
35
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
Resorts World BHD ..................... 20,000 $ 42,417
RJ Reynolds BHD ....................... 60,000 63,128
Sime Darby BHD ........................ 134,000 158,133
Star Publications BHD ................. 25,000 53,317
Talam Corp. BHD ....................... 200,000 81,517
Tanjong PLC ........................... 100,000 223,934
UMW Holdings BHD ...................... 150,000 303,910
----------
TOTAL MALAYSIA (0.6%) ............... 1,422,213
----------
MEXICO
Elamex S.A. de C.V.* .................. 10,000 33,750
Grupo Electra S.A. de C.V. ............ 500,000 297,145
Grupo Industrial Saltillo SA (B
Shares) ............................. 236,000 831,498
Kimberly-Clark de Mexico S.A.
de C.V. ............................. 30,000 612,054
Sanluis Corporacion S.A.
de C.V. ............................. 28,000 65,372
----------
TOTAL MEXICO (0.7%) ................. 1,839,819
----------
NETHERLANDS
Elsevier N.V. ......................... 40,000 464,646
Equant N.V.* .......................... 31,000 2,917,875
Fortis Amev N.V.* ..................... 30,000 927,742
Hagemeyer N.V. ........................ 12,000 392,780
Hunter Douglas N.V. ................... 6,000 206,303
IHC Caland N.V. ....................... 15,000 588,551
ING Groep N.V. ........................ 131,000 7,101,334
Koninklijke Ahold N.V. ................ 110,000 3,793,573
Koninklijke Nedlloyd Groep N.V. 2,250 55,758
Koninklijke Numico N.V.+ .............. 8,000 283,744
United Pan-Europe
Communications N.V.* ................ 65,700 3,568,293
Wolters Kluwer N.V. ................... 168,000 6,695,853
----------
TOTAL NETHERLANDS (10.6%) ........... 26,996,452
----------
NORWAY
Frontline Ltd.--Warrants
(expire 05/11/01)* .................. 57,060 0
Norsk Hydro ASA ....................... 1,100 41,546
Sparebanken NOR ....................... 12,000 224,328
----------
TOTAL NORWAY (0.1%) ................. 265,874
----------
POLAND (0.4%)
Telekomunikacja Polska SA
(GDR)* .............................. 155,000 1,092,750
----------
PORTUGAL
BPI-SGPS SA ........................... 21,400 449,663
Cia de Seguros Imperio SA ............. 134,000 1,033,558
Electricidade de Portugal SA .......... 40,000 721,130
----------
TOTAL PORTUGAL (0.9%) ............... 2,204,351
----------
SINGAPORE
City Developments Ltd. ................ 43,000 275,325
Great Eastern Life Assurance
Co. ................................. 7,000 93,342
Singapore Press Holdings Ltd. ......... 30,000 511,058
United Overseas Bank Ltd. ............. 40,000 279,613
----------
TOTAL SINGAPORE (0.5%) .............. 1,159,338
----------
SPAIN
Aldeasa SA ............................ 32,000 886,833
Banco Bilbao Vizcaya SA ............... 14,643 211,825
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
Banco Santander Central
Hispano SA .......................... 13,872 $ 144,667
Hidroelectrica del Cantabrico ......... 10,116 145,816
Repsol SA ............................. 30,000 613,332
Tabacalera SA--A ...................... 161,000 3,258,302
Telefonica SA* ........................ 2,308 111,315
TelePizza SA* ......................... 40,000 207,335
----------
TOTAL SPAIN (2.2%) .................. 5,579,425
----------
SWEDEN
Asticus AB* ........................... 40,000 552,604
Autoliv, Inc.+ ........................ 8,800 269,123
ForeningsSparbanken AB ................ 187,500 2,656,748
Karlshamns AB+ ........................ 33,367 248,214
NetCom Systems AB
(B Shares)*+ ........................ 6,000 202,621
Skandia Forsakrings AB ................ 24,000 450,584
Skandinaviska Enskilda Banken
(Series A) .......................... 84,700 990,117
----------
TOTAL SWEDEN (2.1%) ................. 5,370,011
----------
SWITZERLAND
ABB Ltd.* ............................. 7,300 689,212
Novartis AG ........................... 1,980 2,896,565
Roche Holding AG ...................... 60 617,903
Tag Heuer International SA
(ADR) ............................... 35,000 363,125
UBS AG--Registered .................... 6,700 2,003,480
Zurich Allied AG ...................... 2,560 1,458,426
----------
TOTAL SWITZERLAND (3.1%) ............ 8,028,711
----------
THAILAND
CMIC Finance & Securities
Public Co. Ltd.* .................... 51,000 0
Nation Multimedia Group Public
Co. Ltd. ............................ 130,000 73,133
----------
TOTAL THAILAND (0.0%) ............... 73,133
----------
UNITED KINGDOM
BAA PLC ............................... 13,300 127,979
Bank of Scotland ...................... 339,000 4,491,979
BG PLC ................................ 22,077 134,949
British Airways PLC ................... 38,000 262,403
British Energy PLC .................... 60,000 511,097
British Sky Broadcasting
Group PLC ........................... 8,097 75,167
Cadbury Schweppes PLC ................. 11,922 75,978
Compass Group PLC ..................... 170,000 1,686,779
Dixons Group PLC ...................... 100,000 1,869,292
FKI PLC ............................... 150,000 466,282
Garban PLC ............................ 2,590 12,257
GKN PLC ............................... 4,178 71,377
Great Universal Stores PLC ............ 3,970 44,025
HSBC Holdings PLC ..................... 10,000 354,298
Kingfisher PLC ........................ 8,168 94,058
Land Securities PLC ................... 3,207 43,153
Legal & General Group PLC ............. 29,900 76,173
Lloyds TSB Group PLC .................. 34,379 466,391
Marks & Spencer PLC ................... 17,109 99,049
MEPC PLC .............................. 57,826 470,686
Misys PLC ............................. 250,000 2,141,404
Next PLC .............................. 115,800 1,407,472
Orange PLC* ........................... 224,450 3,292,769
</TABLE>
36
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------
<S> <C> <C>
Peninsular & Oriental Steam
Navigation Co. .................... 3,314 $ 49,794
Randgold Resources Ltd.
(GDR)*+ ........................... 30,300 121,200
Rentokil Initial PLC ................ 140,000 546,590
Royal & Sun Alliance Insurance
Group PLC ......................... 327,273 2,937,517
Royal Bank of Scotland Group
PLC ............................... 306,000 6,236,525
Standard Chartered PLC .............. 240,500 3,930,371
United News & Media PLC ............. 425,000 4,089,568
Vodafone AirTouch PLC ............... 211,100 4,162,526
------------
TOTAL UNITED KINGDOM (15.8%) 40,349,108
------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (82.7%)
(Cost $194,239,333) ............... 211,196,124
------------
PREFERRRED STOCKS:
FINLAND (0.4%)
Nokia Oyj (ADR) ..................... 12,000 1,098,750
------------
TOTAL PREFERRED STOCKS (0.4%)
(Cost $99,210) .................... 1,098,750
------------
PRINCIPAL
AMOUNT
--------
LONG-TERM DEBT SECURITIES:
UNITED STATES (0.1%)
LSI Logic Corp.
4.25% Conv., 03/15/04+ ............ $ 190,000 310,175
------------
TOTAL LONG-TERM DEBT
SECURITIES (0.1%)
(Amortized Cost $259,134) ......... 310,175
------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (13.7%)
Federal Home Loan Bank
4.6%, due 07/01/99 ............. $34,900,000 $ 34,900,000
------------
TOTAL SHORT-TERM DEBT SECURITIES (13.7%)
(Amortized Cost $34,900,000)..... 34,900,000
------------
TOTAL INVESTMENTS (96.9%)
(Cost/Amortized Cost
$229,497,677) .................. 247,505,049
OTHER ASSETS
LESS LIABILITIES (3.1%) ........ 8,047,709
------------
NET ASSETS (100.0%) .............. $255,552,758
============
</TABLE>
<TABLE>
<CAPTION>
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Equity Investments
<S> <C>
Basic Materials ................ 1.0%
Business Services .............. 7.8
Capital Goods .................. 2.3
Consumer Cyclicals ............. 11.5
Consumer Non-Cyclicals ......... 16.9
Credit Sensitive ............... 32.9
Diversified .................... 0.9
Energy ......................... 2.3
Technology ..................... 24.4
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Fair value securities.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1999, these securities amounted to $1,509,840 or 0.6%
of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
37
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.2%)
Republic Services, Inc.* ............ 2,190,600 $ 54,217,350
-------------
PRINTING, PUBLISHING &
BROADCASTING (7.2%)
Comcast Corp. (Class A) SPL ......... 3,795,000 145,870,312
Infinity Broadcasting Corp.
(Class A)* ........................ 2,203,100 65,542,225
USA Networks, Inc.* ................. 2,934,600 117,750,825
-------------
329,163,362
-------------
PROFESSIONAL SERVICES (0.6%)
Block (H&R), Inc. ................... 552,000 27,600,000
-------------
TRUCKING, SHIPPING (1.1%)
Teekay Shipping Corp.+ .............. 2,841,100 50,074,388
-------------
TOTAL BUSINESS SERVICES (10.1%) 461,055,100
-------------
CAPITAL GOODS (1.9%)
MACHINERY
United Rentals, Inc.* ............... 2,967,300 87,535,350
-------------
CONSUMER CYCLICALS
AIRLINES (5.7%)
Continental Airlines, Inc.
(Class B)*+ ....................... 4,542,800 170,922,850
Northwest Airlines Corp.* ........... 2,663,500 86,563,750
-------------
257,486,600
-------------
APPAREL, TEXTILE (6.8%)
Jones Apparel Group, Inc.* .......... 1,627,300 55,836,731
Mohawk Industries, Inc.*+ ........... 4,469,500 135,761,063
Tommy Hilfiger Corp.* ............... 811,100 59,615,850
Unifi, Inc.* ........................ 2,859,100 60,755,875
-------------
311,969,519
-------------
AUTO RELATED (4.1%)
AutoNation, Inc.* ................... 6,053,600 107,829,750
Circuit City Stores, Inc.--CarMax
Group+ ............................ 5,227,200 27,769,500
Hertz Corp. (Class A) ............... 845,500 52,421,000
-------------
188,020,250
-------------
FOOD SERVICES, LODGING (1.1%)
MeriStar Hospitality Corp. .......... 2,171,300 48,718,544
-------------
HOUSEHOLD FURNITURE,
APPLIANCES (1.2%)
Industrie Natuzzi Spa (ADR) ......... 2,884,700 56,071,356
-------------
LEISURE RELATED (10.7%)
Harman International Industries,
Inc. .............................. 786,300 34,597,200
Hasbro, Inc. ........................ 2,025,900 56,598,581
Mattel, Inc. ........................ 1,824,700 48,240,506
Premier Parks, Inc.*+ ............... 5,543,200 203,712,600
Royal Caribbean Cruises Ltd. ........ 3,294,000 144,112,500
-------------
487,261,387
-------------
PHOTO & OPTICAL (0.4%)
Bausch & Lomb, Inc. ................. 249,500 19,086,750
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
RETAIL--GENERAL (12.1%)
Bed Bath & Beyond, Inc.* ............ 1,554,600 $ 59,852,100
Consolidated Stores Corp.* .......... 1,003,700 27,099,900
Family Dollar Stores, Inc. .......... 3,154,900 75,717,600
Limited, Inc. ....................... 473,700 21,494,138
Ross Stores, Inc. ................... 896,800 45,176,300
Tiffany & Co.+ ...................... 1,415,000 136,547,500
TJX Cos., Inc. ...................... 2,003,400 66,738,262
Venator Group, Inc.*+ ............... 11,365,900 118,631,581
-------------
551,257,381
-------------
TOTAL CONSUMER CYCLICALS (42.1%)
1,919,871,787
-------------
CONSUMER NONCYCLICALS
DRUGS (0.5%)
Biogen, Inc.* ....................... 331,800 21,338,888
-------------
HOSPITAL SUPPLIES & SERVICES (8.3%)
Columbia/HCA Healthcare Corp. 5,285,700 120,580,031
Health Management Associates,
Inc. (Class A)* ................... 5,279,700 59,396,625
HEALTHSOUTH Corp.* .................. 9,556,200 142,745,737
St. Jude Medical, Inc.* ............. 1,074,700 38,286,188
VISX, Inc.* ......................... 238,500 18,886,219
-------------
379,894,800
-------------
RETAIL--FOOD (0.7%)
Whole Foods Market, Inc.* ........... 673,600 32,374,900
-------------
TOTAL CONSUMER NONCYCLICALS (9.5%) 433,608,588
-------------
CREDIT SENSITIVE
BANKS (1.3%)
GreenPoint Financial Corp. ......... 1,760,000 57,750,000
-------------
FINANCIAL SERVICES (3.3%)
A.G. Edwards, Inc. .................. 1,317,400 42,486,150
Capital One Financial Corp. ......... 1,012,200 56,366,888
Paine Webber Group, Inc. ............ 1,122,000 52,453,500
-------------
151,306,538
-------------
INSURANCE (5.7%)
Ace Ltd. ............................ 886,800 25,052,100
AFLAC, Inc. ......................... 971,000 46,486,625
CNA Financial Corp.* ................ 4,744,100 191,246,531
-------------
262,785,256
-------------
REAL ESTATE (4.6%)
Boston Properties, Inc. ............. 1,397,400 50,131,725
Crescent Real Estate Equities Co. . 1,728,000 41,040,000
Equity Office Properties Trust ...... 1,604,600 41,117,875
Vornado Realty Trust ................ 2,164,900 76,448,031
-------------
208,737,631
-------------
TOTAL CREDIT SENSITIVE (14.9%)..... 680,579,425
-------------
TECHNOLOGY
ELECTRONICS (3.5%)
Broadcom Corp. (Class A)* ........... 191,000 27,611,438
Citrix Systems, Inc.* ............... 481,700 27,216,050
Nextlink Communications, Inc.
(Class A)* ........................ 286,700 21,323,313
Sanmina Corp.* ...................... 1,084,400 82,278,850
-------------
158,429,651
-------------
</TABLE>
38
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------
<S> <C> <C>
OFFICE EQUIPMENT SERVICES (3.4%)
American Tower Corp.
(Class A)* ....................... 1,433,000 $ 34,392,000
Comverse Technology, Inc.* ......... 1,070,700 80,837,850
McKesson HBOC, Inc. ................ 1,260,000 40,477,500
--------------
155,707,350
--------------
TELECOMMUNICATIONS (11.1%)
Amdocs Ltd.* ....................... 1,220,300 27,761,825
American Satellite Network--
Warrants (expire 07/01/99)* ...... 49,450 0
Crown Castle International
Corp.* ........................... 1,421,100 29,576,644
Global TeleSystems Group, Inc.*..... 1,857,200 150,433,200
McLeodUSA, Inc. (Class A)* ......... 520,800 28,644,000
Millicom International Cellular
SA*+ ............................. 2,492,300 78,507,450
Nextel Communications, Inc.
(Class A)* ....................... 2,479,100 124,419,831
NTL, Inc.* ......................... 517,100 44,567,556
RCN Corp.* ......................... 599,600 24,958,350
--------------
508,868,856
--------------
TOTAL TECHNOLOGY (18.0%) ......... 823,005,857
--------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (96.5%)
(Cost $3,746,272,286) ............ 4,405,656,107
--------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (1.1%)
BellSouth Corp.
5.09%, due 07/29/99 ............. $ 50,000,000 $ 49,802,833
--------------
TIME DEPOSITS (2.2%)
Societe Generale
5.87%, due 07/01/99 ............. 102,100,000 102,100,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (3.3%)
(Amortized Cost $151,902,833)..... 151,902,833
--------------
TOTAL INVESTMENTS (99.8%)
(Cost/Amortized Cost $3,898,175,119) 4,557,558,940
OTHER ASSETS
LESS LIABILITIES (0.2%) ......... 7,254,908
--------------
NET ASSETS (100.0%) ............... $4,564,813,848
==============
</TABLE>
- ----------
* Non-income producing.
+ Affiliated company as defined under the Investment Company Act of 1940
(See Note 6).
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
39
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE SMALL CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC INDUSTRY
CHEMICALS (0.7%)
MacDermid, Inc. ........................... 44,700 $2,078,550
----------
MINING & METALS (0.8%)
Gibraltar Steel Corp. ..................... 98,200 2,430,450
----------
TOTAL BASIC INDUSTRY (1.5%) ............. 4,509,000
----------
CAPITAL GOODS
ENGINEERING & CONSTRUCTION (1.0%)
Granite Construction, Inc. ................ 101,200 2,966,425
----------
MACHINERY (1.7%)
National Equipment Services,
Inc.* ................................... 139,900 1,678,800
Terex Corp.* .............................. 110,400 3,360,300
----------
5,039,100
----------
MISCELLANEOUS (5.9%)
L-3 Communications Holdings,
Inc.* ................................... 83,500 4,034,094
Mohawk Industries, Inc.* .................. 114,500 3,477,937
SLI, Inc.* ................................ 110,800 2,991,600
Spartech Corp. ............................ 108,600 3,434,475
WESCO International, Inc.* ................ 177,800 3,644,900
----------
17,583,006
----------
POLLUTION CONTROL (4.0%)
Casella Waste Systems, Inc.
(Class A)* .............................. 173,900 4,521,400
Tetra Tech, Inc.* ......................... 199,500 3,291,750
Waste Connections, Inc.* .................. 135,500 4,132,750
----------
11,945,900
----------
TOTAL CAPITAL GOODS (12.6%) ............. 37,534,431
----------
CONSUMER MANUFACTURING
AUTO & RELATED (1.9%)
O'Reilly Automotive, Inc.* ................ 26,900 1,355,088
Tower Automotive, Inc.* ................... 167,000 4,248,062
----------
TOTAL CONSUMER MANUFACTURING (1.9%) 5,603,150
----------
CONSUMER SERVICES
ADVERTISING (1.1%)
Lamar Advertising Co.* .................... 83,300 3,410,094
----------
AIRLINES (1.2%)
Expeditors International of
Washington, Inc. ........................ 131,300 3,577,925
----------
APPAREL (1.4%)
Children's Place Retail Stores,
Inc.* ................................... 10,500 425,250
Men's Wearhouse, Inc.* .................... 143,200 3,651,600
Stage Stores, Inc.--Rights
(expire 11/10/08)* ...................... 195,700 0
----------
4,076,850
----------
BROADCASTING & CABLE (1.6%)
Cox Radio, Inc. (Class A)* ................ 59,400 3,222,450
Metro Networks, Inc.* ..................... 31,400 1,675,975
----------
4,898,425
----------
ENTERTAINMENT & LEISURE (3.6%)
Bally Total Fitness Holding
Corp.* .................................. 130,100 3,691,587
Championship Auto Racing
Teams, Inc.* ............................ 68,800 2,059,700
Premier Parks, Inc.* ...................... 75,900 2,789,325
Preview Travel, Inc.--Rights
(expire 10/28/08)* ...................... 99,400 0
Station Casinos, Inc.* .................... 98,500 2,006,938
----------
10,547,550
----------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
MISCELLANEOUS (14.9%)
Beyond.com Corp.* ......................... 27,700 $ 794,644
Career Education Corp.* ................... 83,100 2,809,818
CDW Computer Centers, Inc.* ............... 95,200 4,188,800
Consolidated Graphics, Inc.* .............. 74,900 3,745,000
Corinthian Colleges, Inc.* ................ 73,800 1,392,975
Cornell Corrections, Inc.* ................ 123,600 2,031,675
Corporate Executive Board Co.*............. 86,400 3,072,600
Dycom Industries, Inc.* ................... 73,200 4,099,200
Insight Enterprises, Inc.* ................ 216,700 5,363,325
Iron Mountain, Inc.* ...................... 163,600 4,683,050
Lason, Inc.* .............................. 139,200 6,907,800
pcOrder.com, Inc.* ........................ 12,800 532,000
Pierce Leahy Corp.* ....................... 56,100 1,384,969
Regis Corp. ............................... 124,800 2,394,600
VerticalNet, Inc.* ........................ 8,000 839,000
----------
44,239,456
----------
RETAIL--GENERAL MERCHANDISE (5.9%)
AnnTaylor Stores Corp.* ................... 72,300 3,253,500
BJ's Wholesale Club, Inc.* ................ 125,400 3,769,837
Claire's Stores, Inc. ..................... 61,000 1,563,125
THQ, Inc.* ................................ 60,950 1,752,313
Tuesday Morning Corp.* .................... 132,400 3,376,200
99 Cents Only Stores* ..................... 75,700 3,780,269
----------
17,495,244
----------
TOTAL CONSUMER SERVICES (29.7%)
88,245,544
----------
ENERGY
MISCELLANEOUS (3.3%)
Basin Exploration, Inc.* .................. 77,000 1,544,813
Houston Exploration Co.* .................. 113,400 2,147,513
Newfield Exploration Co.* ................. 122,200 3,475,062
Stone Energy Corp.* ....................... 60,700 2,572,162
----------
9,739,550
----------
OIL SERVICE (1.3%)
BJ Services Co.* .......................... 51,700 1,521,918
Core Laboratories N.V.* ................... 83,700 1,166,569
Dril-Quip, Inc.* .......................... 55,300 1,268,444
----------
3,956,931
----------
PIPELINES (0.5%)
Cal Dive International, Inc.* ............. 51,800 1,547,525
----------
TOTAL ENERGY (5.1%) ...................... 15,244,006
----------
FINANCE
BANKING--MONEY CENTER (1.1%)
U.S. Trust Corp. .......................... 34,800 3,219,000
----------
BROKERAGE & MONEY MANAGEMENT (1.3%)
Affiliated Managers Group, Inc.*........... 68,400 2,064,825
Conning Corp. ............................. 84,100 1,366,625
Multex.com, Inc.* ......................... 17,100 446,737
----------
3,878,187
----------
INSURANCE (2.4%)
Annuity and Life Re (Holdings)
Ltd. .................................... 106,900 2,398,569
Reinsurance Group of America,
Inc. .................................... 137,300 4,599,550
----------
6,998,119
----------
REAL ESTATE (2.4%)
Correctional Properties Trust ............. 85,700 1,349,775
Glenborough Realty Trust, Inc. ............ 74,300 1,300,250
Macerich Co. .............................. 70,400 1,848,000
MeriStar Hospitality Corp. ................ 121,853 2,734,077
----------
7,232,102
----------
TOTAL FINANCE (7.2%) .................... 21,327,408
----------
</TABLE>
40
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE SMALL CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE
BIOTECHNOLOGY (1.3%)
Anesta Corp.* ......................... 79,300 $ 1,620,694
GelTex Pharmaceuticals, Inc.* ......... 81,500 1,467,000
Trimeris, Inc.* ....................... 56,400 817,800
------------
3,905,494
------------
DRUGS (4.1%)
ChiRex, Inc.* ......................... 44,400 1,426,350
Jones Pharma, Inc. .................... 136,300 5,366,812
Medicis Pharmaceutical Corp.
(Class A)* .......................... 176,450 4,477,419
United Therapeutics Corp.* ............ 65,800 781,375
------------
12,051,956
------------
MEDICAL PRODUCTS (1.9%)
AmeriSource Health Corp.
(Class A)* .......................... 51,200 1,305,600
InfoCure Corp.* ....................... 53,700 2,842,744
Novoste Corp.* ........................ 68,900 1,446,900
------------
5,595,244
------------
MEDICAL SERVICES (5.3%)
CareMatrix Corp.* ..................... 134,600 1,674,088
First Consulting Group, Inc.* ......... 175,700 1,866,812
Hooper Holmes, Inc. ................... 88,500 1,803,187
Medical Manager Corp.* ................ 34,500 1,526,625
MedQuist, Inc.* ....................... 27,800 1,216,250
Pharmaceutical Product
Development, Inc.* .................. 62,800 1,719,150
Priority Healthcare Corp.
(Class B)* .......................... 64,850 2,237,325
Res-Care, Inc.* ....................... 163,100 3,710,525
------------
15,753,962
------------
TOTAL HEALTHCARE (12.6%) ............ 37,306,656
------------
TECHNOLOGY
COMMUNICATION EQUIPMENT (0.5%)
Inet Technologies, Inc.* .............. 59,700 1,432,800
True North Communications--
Rights (expire 11/30/08)* ........... 125,100 0
------------
1,432,800
------------
COMPUTER PERIPHERIALS (0.8%)
Advanced Energy Industries,
Inc.* ............................... 41,300 1,675,231
SoftNet Systems, Inc.* ................ 19,800 551,925
------------
2,227,156
------------
COMPUTER SERVICES (1.5%)
IMRglobal Corp.* ...................... 53,700 1,033,725
Sykes Enterprises, Inc.* .............. 86,500 2,886,937
Visual Networks, Inc.* ................ 19,000 608,000
------------
4,528,662
------------
COMPUTER SOFTWARE (9.6%)
About.com, Inc.* ...................... 13,600 705,500
Advent Software, Inc.* ................ 28,900 1,936,300
Allaire Corp.* ........................ 35,500 2,422,875
BindView Development Corp.* ........... 93,600 2,223,000
Intraware, Inc.* ...................... 24,800 595,200
Macromedia, Inc.* ..................... 99,800 3,517,950
Marimba, Inc.* ........................ 17,100 900,956
Mercury Interactive Corp.* ............ 37,800 1,337,175
Micromuse, Inc.* ...................... 101,050 5,039,869
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
New Era of Networks, Inc.* ............ 59,300 $ 2,605,494
Online Resources &
Communications Corp.* ............... 33,300 451,631
Peregrine Systems, Inc.* .............. 110,200 2,830,763
Ramp Networks, Inc.* .................. 30,600 437,963
USinternetworking, Inc.* .............. 21,600 907,200
Verity, Inc.* ......................... 36,300 1,967,006
Vignette Corp. ........................ 10,200 765,000
------------
28,643,882
------------
MISCELLANEOUS (1.3%)
Flextronics International Ltd.* ....... 60,600 3,363,300
iVillage, Inc.* ....................... 8,600 432,150
------------
3,795,450
------------
NETWORKING SOFTWARE (0.3%)
Concentric Network Corp.* ............. 20,600 818,850
------------
SEMICONDUCTOR CAPITAL EQUIPMENT (0.5%)
MKS Instruments, Inc.* ................ 81,800 1,523,525
------------
SEMICONDUCTOR COMPONENTS (6.7%)
Alpha Industries, Inc.* ............... 5,900 280,988
Applied Micro Circuits Corp.* ......... 33,900 2,788,275
ATMI, Inc.* ........................... 57,700 1,716,575
DuPont Photomasks, Inc.* .............. 50,500 2,417,688
Emulex Corp.* ......................... 12,300 1,367,606
Micrel, Inc.* ......................... 26,400 1,953,600
MIPS Technologies, Inc.
(Class A)* .......................... 75,000 3,595,312
Photronics, Inc.* ..................... 72,200 1,768,900
Software.com, Inc.* ................... 18,500 428,969
TranSwitch Corp.* ..................... 75,700 3,586,287
------------
19,904,200
------------
TOTAL TECHNOLOGY (21.2%) ............ 62,874,525
------------
UTILITIES
ELECTRIC & GAS UTILITY (2.1%)
Calpine Corp.* ........................ 55,700 3,007,800
Metzler Group, Inc.* .................. 113,700 3,140,963
------------
6,148,763
------------
TELEPHONE UTILITY (0.8%)
WinStar Communications, Inc.* ......... 49,100 2,393,625
------------
TOTAL UTILITIES (2.9%) ............... 8,542,388
------------
TOTAL COMMON STOCKS (94.7%)
(Cost $254,695,131).................. 281,187,108
------------
PRINCIPAL
AMOUNT
------
SHORT-TERM DEBT SECURITIES:
TIME DEPOSIT (10.0%)
Chase Nassau
4.62%, due 07/01/99 ................. $29,617,974 29,617,974
------------
TOTAL SHORT-TERM DEBT
SECURITIES (10.0%)
(Amortized Cost $29,617,974)......... 29,617,974
------------
TOTAL INVESTMENTS (104.7%)
(Cost/Amortized Cost
$284,313,105)..................... 310,805,082
OTHER ASSETS
LESS LIABILITIES (-4.7%) ............ (13,880,094)
------------
NET ASSETS (100.0%) ................... $296,924,988
=============
</TABLE>
- ----------
* Non-income producing.
See Notes to Financial Statements.
41
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND
OTHER INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.1%)
Akzo Nobel N.V. ............................. 2,500 $ 105,320
Georgia Gulf Corp. .......................... 22,000 371,250
----------
476,570
----------
CHEMICALS--SPECIALTY (0.1%)
Lyondell Chemical Co. ....................... 15,000 309,375
----------
PAPER (0.0%)
UPM-Kymmene Oyj ............................. 5,620 161,321
----------
STEEL (0.0%)
Pohang Iron & Steel Co. Ltd.
(ADR) ..................................... 2,000 67,250
----------
TOTAL BASIC MATERIALS (0.2%) .............. 1,014,516
----------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (2.2%)
AT&T Corp.--Liberty Media
Group--A* ................................. 58,760 2,159,430
CBS Corp.* .................................. 8,800 382,250
Chancellor Media Corp.* ..................... 17,800 981,225
Clear Channel Communications,
Inc.* ..................................... 12,700 875,506
Comcast Corp. (Class A) SPL ................. 10,000 384,375
Gannett Co., Inc. ........................... 13,000 927,875
MediaOne Group, Inc.* ....................... 9,600 714,000
Seat Pagine Gialle Spa ...................... 196,000 268,152
Television Broadcasts Ltd. .................. 31,000 145,444
Time Warner, Inc. ........................... 28,570 2,099,895
United News & Media PLC ..................... 30,000 288,675
USA Networks, Inc.* ......................... 5,900 236,738
Wolters Kluwer N.V. ......................... 4,400 175,368
----------
9,638,933
----------
PROFESSIONAL SERVICES (0.3%)
Cap Gemini SA ............................... 2,400 377,664
Nielsen Media Research, Inc.* ............... 25,000 731,250
----------
1,108,914
----------
TRUCKING, SHIPPING (0.0%)
Frontline Ltd.--Warrants (expire
05/11/01)* ................................ 3,804 0
Knightsbridge Tankers Ltd. .................. 6,800 119,000
OMI Corp.* .................................. 53,100 109,519
----------
228,519
----------
TOTAL BUSINESS SERVICES (2.5%) 10,976,366
----------
CAPITAL GOODS
AEROSPACE (0.1%)
British Aerospace PLC ....................... 10,000 64,952
Loral Space & Communications*................ 7,000 126,000
----------
190,952
----------
BUILDING & CONSTRUCTION (0.3%)
ABB AG ...................................... 40 59,290
ABB Ltd.* ................................... 1,800 169,943
American Standard Companies,
Inc.* ..................................... 18,500 888,000
New World Infrastructure Ltd. ............... 113,400 213,402
----------
1,330,635
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
BUILDING MATERIALS & FOREST
PRODUCTS (0.3%)
Lafarge SA .................................. 800 $ 76,161
Louisiana-Pacific Corp. ..................... 10,000 237,500
Martin Marietta Materials, Inc. ............. 19,700 1,162,300
----------
1,475,961
----------
ELECTRICAL EQUIPMENT (0.8%)
General Electric Co. ........................ 28,400 3,209,200
Johnson Electric Holdings Ltd. .............. 52,000 214,480
Schneider SA ................................ 4,000 224,888
----------
3,648,568
----------
MACHINERY (0.7%)
AlliedSignal, Inc. .......................... 13,900 875,700
FKI PLC ..................................... 10,000 31,085
United Technologies Corp. ................... 30,200 2,164,963
----------
3,071,748
----------
TOTAL CAPITAL GOODS (2.2%) ................ 9,717,864
----------
CONSUMER CYCLICALS
AIRLINES (0.3%)
Alaska Air Group, Inc.* ..................... 5,000 208,750
British Airways PLC ......................... 42,500 293,477
Continental Airlines, Inc.
(Class B)* ................................ 20,000 752,500
Northwest Airlines Corp.* ................... 6,000 195,000
----------
1,449,727
----------
APPAREL, TEXTILE (0.0%)
Unifi, Inc.* ................................ 500 10,625
----------
AUTO RELATED (0.1%)
Autoliv, Inc. ............................... 5,600 171,260
AutoNation, Inc.* ........................... 10,000 178,125
DaimlerChrysler AG .......................... 2,900 253,624
----------
603,009
----------
AUTOS & TRUCKS (0.0%)
Honda Motor Co. Ltd. ........................ 3,000 127,327
----------
FOOD SERVICES, LODGING (0.4%)
Compass Group PLC ........................... 10,000 99,223
Starbucks Corp.* ............................ 32,100 1,205,756
U.S. Foodservice* ........................... 8,000 341,000
----------
1,645,979
----------
HOUSEHOLD FURNITURE, APPLIANCES (0.4%)
Newell Rubbermaid, Inc. ..................... 33,637 1,564,120
----------
LEISURE RELATED (1.2%)
Berjaya Sports Toto BHD(a) .................. 16,000 33,365
Carnival Corp. (Class A) .................... 32,800 1,590,800
Cyrk, Inc.* ................................. 10,600 64,262
Harley-Davidson, Inc. ....................... 24,400 1,326,750
Hasbro, Inc. ................................ 3,000 83,812
MGM Grand, Inc.* ............................ 17,000 833,000
Royal Caribbean Cruises Ltd. ................ 13,980 611,625
Sankyo Co. Ltd. ............................. 8,000 383,222
TABCORP Holdings Ltd. ....................... 15,900 106,732
----------
5,033,568
----------
PHOTO & OPTICAL (0.1%)
Fuji Photo Film Co. ......................... 6,000 227,352
----------
</TABLE>
42
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------
<S> <C> <C>
RETAIL--GENERAL (2.0%)
Bed Bath & Beyond, Inc.* ........... 4,000 $ 154,000
Circuit City Stores-Circuit City
Group ............................ 15,924 1,480,932
Dixons Group PLC ................... 12,300 229,923
Genesis Direct, Inc.* .............. 9,000 16,875
Home Depot, Inc. ................... 19,459 1,253,889
Kingfisher PLC ..................... 11,000 126,670
Kohl's Corp.* ...................... 17,800 1,373,938
Koninklijke Ahold N.V. ............. 8,800 303,486
Limited, Inc. ...................... 41,000 1,860,375
Next PLC ........................... 24,200 294,135
Wal-Mart Stores, Inc. .............. 34,229 1,651,549
----------
8,745,772
----------
TOTAL CONSUMER CYCLICALS (4.5%) 19,407,479
----------
CONSUMER NONCYCLICALS
BEVERAGES (0.4%)
Coca-Cola Enterprises, Inc. ........ 50,000 1,487,500
Diageo PLC ......................... 18,000 188,112
----------
1,675,612
----------
CONTAINERS (0.3%)
Sealed Air Corp.* .................. 19,400 1,258,575
----------
DRUGS (2.0%)
AstraZeneca Group PLC .............. 3,683 142,566
Biogen, Inc.* ...................... 8,900 572,381
Bristol-Myers Squibb Co. ........... 39,500 2,782,281
Dura Pharmaceuticals, Inc.* ........ 20,000 238,750
Human Genome Sciences, Inc.* ....... 10,500 414,750
Millennium Pharmaceuticals,
Inc.* ............................ 12,300 442,800
Novartis AG ........................ 80 117,033
Sanofi-Synthelabo SA* .............. 6,400 271,931
Santen Pharmaceutical Co. Ltd. ..... 5,000 96,385
Schering-Plough Corp. .............. 50,000 2,650,000
Takeda Chemical Industries ......... 10,000 464,135
Yamanouchi Pharmaceutical Co.
Ltd. ............................. 9,000 344,751
----------
8,537,763
----------
FOODS (0.2%)
Ajinomoto Co., Inc. ................ 14,000 159,841
Nestle SA .......................... 82 148,020
Ng Fung Hong Ltd. .................. 134,000 111,403
Tyson Foods, Inc. (Class A) ........ 17,240 387,900
----------
807,164
----------
HOSPITAL SUPPLIES & SERVICES (0.7%)
Health Management Associates,
Inc. (Class A)* .................. 16,000 180,000
HEALTHSOUTH Corp.* ................. 3,000 44,813
Medtronic, Inc. .................... 25,000 1,946,875
Sun International Hotels Ltd.* ..... 7,400 331,150
Tenet Healthcare Corp.* ............ 26,100 484,481
----------
2,987,319
----------
RETAIL--FOOD (0.8%)
Familymart Co. ..................... 5,000 229,585
Food Lion, Inc. (Class A) .......... 34,900 414,437
Kroger Co.* ........................ 65,575 1,832,002
Safeway, Inc.* ..................... 18,420 911,790
----------
3,387,814
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------
<S> <C> <C>
SOAPS & TOILETRIES (0.2%)
Gillette Co. ....................... 7,610 $ 312,010
Kao Corp. .......................... 14,000 393,812
Shiseido Co. Ltd. .................. 21,000 315,165
----------
1,020,987
----------
TOBACCO (0.6%)
Loews Corp. ........................ 2,000 158,250
Philip Morris Cos., Inc. ........... 41,700 1,675,819
Seita .............................. 3,750 216,834
Tabacalera SA--A ................... 30,600 619,280
----------
2,670,183
----------
TOTAL CONSUMER NONCYCLICALS (5.2%) 22,345,417
----------
CREDIT SENSITIVE
BANKS (2.5%)
Bangkok Bank Public Co. Ltd.*....... 2,000 7,483
Bank of America Corp. .............. 36,976 2,710,803
Bank of Ireland .................... 10,000 168,305
Bank of Scotland ................... 28,000 371,019
Bank of Tokyo-Mitsubishi Ltd. ...... 35,000 498,924
Bank One Corp. ..................... 30,000 1,786,875
Banque Nationale de Paris .......... 3,000 250,289
Barclays PLC ....................... 2,000 58,240
Citigroup, Inc. .................... 75,300 3,576,750
Commonwealth Bank of
Australia ........................ 6,300 99,909
Development Bank of Singapore
Ltd. ............................. 15,000 183,276
Fuji Bank Ltd. ..................... 29,000 202,499
National Australia Bank Ltd. ....... 3,500 57,697
PT Bank Dagang Nasional
Indonesia Tbk* ................... 136,000 0
Societe Generale (Class A) ......... 1,700 299,986
Standard Chartered PLC ............. 28,520 466,088
Thai Farmers Bank Public Co.--
Warrants (expire 09/15/02)* ...... 375 88
UBS AG--Registered ................. 440 131,572
Unicredito Italiano Spa ............ 42,600 187,382
----------
11,057,185
----------
FINANCIAL SERVICES (2.4%)
A.G. Edwards, Inc. ................. 7,000 225,750
Associates First Capital Corp.
(Class A) ........................ 51,700 2,290,959
Credit Saison Co. .................. 5,200 108,844
Daiwa Securities Group, Inc. ....... 47,000 311,078
Legg Mason, Inc. ................... 6,000 231,000
MBIA, Inc. ......................... 11,500 744,625
MBNA Corp. ......................... 105,900 3,243,187
Merrill Lynch & Co., Inc. .......... 8,100 647,494
Morgan Stanley Dean Witter &
Co. .............................. 13,800 1,414,500
Peregrine Investment Holdings
Ltd.* ............................ 52,000 0
Radian Group, Inc. ................. 20,700 1,010,419
Worms Et Compagnie* ................ 200 9,481
----------
10,237,337
----------
</TABLE>
43
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
INSURANCE (0.8%)
Ace Ltd. ............................ 1,000 $ 28,250
American International Group,
Inc. .............................. 11,000 1,287,687
Everest Reinsurance Holdings,
Inc. .............................. 16,500 538,313
Gallagher (Arthur J.) & Co. ......... 7,500 371,250
ING Groep N.V. ...................... 6,800 368,626
UnumProvident Corp. ................. 7,400 405,150
Zurich Allied AG .................... 490 279,152
----------
3,278,428
----------
REAL ESTATE (0.1%)
Boston Properties, Inc. ............. 5,000 179,375
Cheung Kong Holdings Ltd. ........... 4,000 35,575
New World Development Co. ........... 69,000 206,778
Sun Hung Kai Properties Ltd. ........ 16,000 145,908
----------
567,636
----------
UTILITY--ELECTRIC (0.3%)
AES Corp.* .......................... 16,800 976,500
Huaneng Power International,
Inc. .............................. 408,000 170,914
----------
1,147,414
----------
UTILITY--TELEPHONE (0.4%)
AT&T Corp. .......................... 7 364
British Telecommunications PLC....... 10,000 167,684
Sprint Corp. (FON Group) ............ 14,800 781,625
Telecom Italia Spa .................. 13,100 71,149
Telefonica SA* ...................... 4,162 200,715
Telekomunikacja Polska S.A.
(GDR)* ............................ 15,500 109,275
Viatel, Inc.* ....................... 10,000 561,250
----------
1,892,062
----------
TOTAL CREDIT SENSITIVE (6.5%) ..... 28,180,062
----------
ENERGY
OIL--DOMESTIC (0.5%)
Kerr-McGee Corp. .................... 31,900 1,600,981
Louis Dreyfus Natural Gas
Corp.* ............................ 22,000 474,375
Tom Brown, Inc.* .................... 17,500 272,344
----------
2,347,700
----------
OIL--INTERNATIONAL (0.6%)
BP Amoco PLC ........................ 11,100 199,087
Elf Aquitaine SA .................... 1,090 160,155
Orogen Minerals Ltd. ................ 5,160 5,580
Repsol SA ........................... 4,230 86,480
Total Fina SA - B ................... 2,881 372,143
Total Fina SA (ADR) ................. 27,500 1,772,031
----------
2,595,476
----------
OIL--SUPPLIES & CONSTRUCTION (0.2%)
Noble Drilling Corp.* ............... 34,500 679,219
Woodside Petroleum Ltd. ............. 15,400 103,883
----------
783,102
----------
TOTAL ENERGY (1.3%) ............... 5,726,278
----------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY
ELECTRONICS (3.0%)
ABB AB (B Shares) ................... 9,500 $ 126,196
Cisco Systems, Inc.* ................ 58,600 3,779,700
Hoya Corp. .......................... 3,000 169,521
Infosys Technologies Ltd.
(ADR) ............................. 5,100 295,800
Intel Corp. ......................... 42,600 2,534,700
Micron Technology, Inc.* ............ 5,000 201,563
Rohm Co. Ltd. ....................... 1,000 156,780
Sanmina Corp.* ...................... 11,500 872,562
Seagate Technology, Inc.* ........... 27,200 697,000
Solectron Corp.* .................... 48,600 3,241,012
Sterling Commerce, Inc.* ............ 12,500 456,250
TDK Corp. ........................... 3,000 274,758
Tokyo Electron Ltd. ................. 4,000 271,697
----------
13,077,539
----------
OFFICE EQUIPMENT (1.0%)
Canon, Inc. ......................... 6,000 172,747
Dell Computer Corp.* ................ 71,000 2,627,000
International Business Machines
Corp. ............................. 13,000 1,680,250
----------
4,479,997
----------
OFFICE EQUIPMENT SERVICES (1.7%)
Electronic Data Systems Corp. ....... 17,000 961,563
First Data Corp. .................... 45,900 2,246,231
Fiserv, Inc.* ....................... 14,950 468,122
Fuji Soft ABC, Inc. ................. 240 14,296
McKesson HBOC, Inc. ................. 17,113 549,755
Microsoft Corp.* .................... 30,400 2,741,700
Misys PLC ........................... 14,000 119,919
----------
7,101,586
----------
TELECOMMUNICATIONS (3.3%)
Cable & Wireless PLC (ADR) .......... 10,000 396,250
China Telecom (Hong Kong)
Ltd. .............................. 84,000 233,324
Clearnet Communications, Inc.
(Class A)* ........................ 29,000 404,188
Equant N.V.* ........................ 3,880 365,205
Global TeleSystems Group, Inc.*...... 26,842 2,174,202
Korea Telecom Corp. (ADR)* .......... 7,737 309,480
Lucent Technologies, Inc. ........... 27,290 1,840,369
Mannesmann AG ....................... 2,890 432,688
MCI WorldCom, Inc.* ................. 24,700 2,130,375
Millicom International Cellular
SA* ............................... 1,800 56,700
Nextel Communications, Inc.
(Class A)* ........................ 20,000 1,003,750
Nokia Oyj ........................... 12,600 1,105,857
NTL, Inc.* .......................... 15,300 1,318,669
NTT Mobile Communications
Network, Inc. ..................... 30 407,049
Orange PLC* ......................... 43,150 633,027
RCN Corp.* .......................... 5,000 208,125
SK Telecom Co. Ltd. (ADR) ........... 16,473 280,040
SmarTone Telecommunications
Holdings Ltd. ..................... 38,000 135,184
Telstra Corp. Ltd. .................. 23,300 133,006
United Pan-Europe
Communications N.V.* .............. 7,770 422,004
</TABLE>
44
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
Vodafone AirTouch PLC .............. 14,600 $ 287,887
-----------
14,277,379
-----------
TOTAL TECHNOLOGY (9.0%) .......... 38,936,501
-----------
DIVERSIFIED
MISCELLANEOUS (0.6%)
Suez Lyonnaise des Eaux ............ 400 72,237
Tyco International Ltd. ............ 25,400 2,406,650
-----------
TOTAL DIVERSIFIED (0.6%) ......... 2,478,887
-----------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (32.0%)
(Cost $103,991,594)............... 138,783,370
-----------
PREFERRED STOCKS:
BUSINESS SERVICES (0.0%)
PRINTING, PUBLISHING &
BROADCASTING
ProSieben Media AG ................. 1,600 73,848
-----------
CONSUMER CYCLICALS (0.0%)
RETAIL--GENERAL
Hornbach Holding AG ................ 920 39,422
-----------
TOTAL PREFERRED STOCKS (0.0%)
(Cost $148,800) .................. 113,270
-----------
PRINCIPAL
AMOUNT
------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES (1.4%)
PRINTING, PUBLISHING &
BROADCASTING
Time Warner Entertainment Co.
8.375%, 03/15/23 ................. $5,625,000 6,092,831
-----------
CONSUMER CYCLICALS
AUTO RELATED (1.2%)
Enterprise Rent-A-Car USA
Finance Co.
6.8%, 02/15/08+ .................. 5,500,000 5,195,300
-----------
AUTOS & TRUCKS (1.3%)
Ford Motor Co.
6.375%, 02/01/29 ................. 6,400,000 5,560,595
-----------
TOTAL CONSUMER CYCLICALS (2.5%) 10,755,895
-----------
CREDIT SENSITIVE
ASSET BACKED (2.0%)
Capital Auto Receivables Asset
Trust
Series 1999-1, Class A2
5.58%, 06/15/02 ................... 5,500,000 5,450,170
Carco Auto Loan Master Trust
Series 1998-1, Class A2
4.9825%, 06/15/05 ................. 3,280,000 3,262,058
-----------
8,712,228
-----------
BANKS (1.1%)
First Union Corp.
6.55%, 10/15/35 .................. 3,110,000 3,080,175
St. George Bank Ltd.
7.15%, 10/15/05+ ................. 2,000,000 1,971,420
-----------
5,051,595
-----------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES (2.5%)
Household Finance Corp.
6.5%, 11/15/08 ................ $6,125,000 $ 5,813,409
Morgan Stanley Dean Witter &
Co.
5.625%, 01/20/04 .............. 5,100,000 4,915,584
-----------
10,728,993
-----------
MORTGAGE RELATED (21.6%)
Federal National Mortgage
Association:
6.0%, 11/01/10 ................ 10,767,966 10,400,219
7.0%, 04/01/12 ................ 5,024,688 5,046,897
7.0%, 05/01/26 ................ 1,441,991 1,425,321
7.0%, 09/01/27 ................ 1,702,567 1,682,868
6.5%, 03/01/28 ................ 1,826,808 1,766,947
7.0%, 05/01/28 ................ 2,144,685 2,123,047
6.5%, 09/01/28 ................ 2,138,193 2,068,129
6.5%, 10/01/28 ................ 1,938,774 1,875,245
8.0%, 11/01/28 ................ 2,004,953 2,059,448
8.0%, 12/01/28 ................ 3,260,289 3,345,725
6.0%, 01/01/29 ................ 4,102,256 3,860,883
6.0%, 03/01/29 ................ 5,321,452 5,008,343
7.5%, 03/01/29 ................ 4,542,683 4,594,193
7.5%, 04/01/29 ................ 3,727,577 3,769,844
6.5%, 06/01/29 ................ 7,000,000 6,770,624
7.0%, 06/01/29 ................ 6,800,000 6,728,036
8.0%, 06/01/29 ................ 2,000,200 2,052,121
Government National Mortgage
Association:
7.0%, 12/15/25 ................ 9,019,349 8,912,650
7.0%, 07/15/27 ................ 1,746,829 1,726,164
7.0%, 02/15/28 ................ 6,024,715 5,953,443
6.5%, 03/15/28 ................ 1,498,103 1,444,131
6.5%, 05/15/28 ................ 182,305 175,737
6.5%, 07/15/28 ................ 1,172,763 1,130,512
6.5%, 03/15/29 ................ 7,247,621 6,986,511
Prudential Securities Secured
Financing
Series 1999-NRF1, Class A2
6.48%, 01/15/09 ............... 3,000,000 2,896,890
-----------
93,803,928
-----------
UTILITY--ELECTRIC (0.8%)
Texas Utilities (Series C)
6.375%, 01/01/08 .............. 3,600,000 3,429,515
-----------
U.S. GOVERNMENT (17.6%)
U.S. Treasury:
6.75% Note, 04/30/00 .......... 4,000,000 4,047,500
6.0% Note, 08/15/00 ........... 20,000,000 20,125,000
6.25% Note, 04/30/01 .......... 9,500,000 9,615,786
6.5% Note, 08/31/01 ........... 7,100,000 7,233,125
7.25% Note, 05/15/04 .......... 11,200,000 11,882,506
8.125% Bond, 08/15/19 ......... 6,570,000 7,935,312
6.125% Bond, 11/15/27 ......... 9,240,000 9,153,375
5.25% Bond, 11/15/28 .......... 2,650,000 2,345,250
5.25% Bond, 02/15/29 .......... 4,615,000 4,141,962
-----------
76,479,816
-----------
TOTAL CREDIT SENSITIVE (45.6%) 198,206,075
-----------
</TABLE>
45
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
ENERGY (1.0%)
RAILROADS
Union Pacific Corp.
6.625%, 02/01/29 .............. $ 4,845,000 $ 4,244,303
------------
TOTAL LONG-TERM DEBT SECURITIES (50.5%)
(Amortized Cost $225,444,763).. 219,299,104
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Bank
4.6%, due 07/01/99 ............ 60,800,000 60,800,000
Federal Home Loan Mortgage
Corp.
4.81%, due 07/14/99 ........... 11,146,000 11,126,680
------------
TOTAL U.S. GOVERNMENT AGENCIES (16.6%) 71,926,680
------------
TOTAL SHORT-TERM DEBT SECURITIES (16.6%)
(Amortized Cost $71,926,680)... 71,926,680
------------
TOTAL INVESTMENTS (99.1%)
(Cost/Amortized Cost $401,511,837) 430,122,424
OTHER ASSETS
LESS LIABILITIES (0.9%) ....... 3,920,499
------------
NET ASSETS (100.0%) ............. $434,042,923
============
</TABLE>
<TABLE>
<S> <C>
DISTRIBUTION OF INVESTMENTS BY GLOBAL REGION
As a Percentage of Total Investments
Australia .................................. 0.6%
Canada. .................................... 0.1
France ..................................... 1.0
Germany .................................... 0.2
Japan ...................................... 1.2
Latin America .............................. 0.4
Netherlands ................................ 0.4
Scandinavia. ............................... 0.4
Southeast Asia ............................. 0.6
Spain ...................................... 0.2
Switzerland ................................ 0.2
United Kingdom ............................. 1.5
United States**. ........................... 93.0
Other European Countries ................... 0.2
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Includes Short-Term Debt Securities of 16.6%.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1999, these securities amounted to $7,166,720 or 1.7%
of net assets.
(a) Fair value security.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
46
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.1%)
Georgia Gulf Corp. ........................ 136,000 $ 2,295,000
------------
CHEMICALS--SPECIALTY (0.2%)
Lyondell Chemical Co. ..................... 120,000 2,475,000
------------
METALS & MINING (0.0%)
Nord Resources Corp.* ..................... 27,939 15,715
Randgold Resources Ltd.
(GDR)* .................................. 30,300 121,200
------------
136,915
------------
STEEL (0.0%)
NatSteel Ltd. ............................. 220,000 385,115
------------
TOTAL BASIC MATERIALS (0.3%) ............ 5,292,030
------------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (3.7%)
AT&T Corp.--Liberty Media
Group--A* ............................... 467,066 17,164,675
Cablevision Systems Corp.
(Class A) ............................... 98,000 6,860,000
CBS Corp.* ................................ 69,000 2,997,188
Chancellor Media Corp.* ................... 104,600 5,766,075
Clear Channel Communications,
Inc.* ................................... 80,900 5,577,044
Comcast Corp. (Class A) SPL ............... 76,000 2,921,250
Gannett Co., Inc. ......................... 86,900 6,202,487
MediaOne Group, Inc.* ..................... 63,200 4,700,500
New Straits Times Press
BHD(b) .................................. 65,000 133,235
Nippon Television Network
Corp. ................................... 960 397,121
Reuters Group PLC ......................... 20,000 263,278
Time Warner, Inc. ......................... 181,500 13,340,250
United News & Media PLC ................... 419,100 4,032,795
USA Networks, Inc.* ....................... 35,600 1,428,450
Wolters Kluwer N.V. ....................... 80,000 3,188,502
------------
74,972,850
------------
PROFESSIONAL SERVICES (0.3%)
Cap Gemini SA ............................. 6,000 944,160
Nielsen Media Research, Inc.* ............. 160,000 4,680,000
Securitas AB (B Shares) ................... 30,000 449,876
------------
6,074,036
------------
TRUCKING, SHIPPING (0.1%)
Frontline Ltd.--Warrants
(expire 05/11/01)* ...................... 26,628 0
OMI Corp.* ................................ 835,000 1,722,187
------------
1,722,187
------------
TOTAL BUSINESS SERVICES (4.1%)........... 82,769,073
------------
CAPITAL GOODS
AEROSPACE (0.4%)
British Aerospace PLC ..................... 315,000 2,045,987
General Motors Corp.
(Class H)* .............................. 59,900 3,369,375
Loral Space & Communications*.............. 120,000 2,160,000
------------
7,575,362
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
BUILDING & CONSTRUCTION (0.6%)
ABB AG .................................... 1,100 $ 1,630,470
American Standard Companies,
Inc.* ................................... 128,600 6,172,800
CRH PLC ................................... 100,000 1,772,796
Sekisui House Ltd. ........................ 64,000 691,520
Technip SA ................................ 15,350 1,724,434
------------
11,992,020
------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.5%)
Compagnie de St. Gobain ................... 16,000 2,552,453
Louisiana-Pacific Corp. ................... 20,000 475,000
Martin Marietta Materials, Inc. ........... 120,000 7,080,000
------------
10,107,453
------------
ELECTRICAL EQUIPMENT (1.2%)
General Electric Co. ...................... 189,000 21,357,000
Johnson Electric Holdings Ltd. ............ 500,000 2,062,308
Schneider SA .............................. 14,300 803,976
------------
24,223,284
------------
MACHINERY (1.2%)
AlliedSignal, Inc. ........................ 123,000 7,749,000
Schindler Holding AG
Participating Certificate ............... 915 1,403,429
United Technologies Corp. ................. 209,700 15,032,869
Valmet Oyj ................................ 17,400 197,629
------------
24,382,927
------------
TOTAL CAPITAL GOODS (3.9%) .............. 78,281,046
------------
CONSUMER CYCLICALS
AIRLINES (0.8%)
Alaska Air Group, Inc.* ................... 40,000 1,670,000
British Airways PLC ....................... 404,000 2,789,756
Continental Airlines, Inc.
(Class B)* .............................. 160,000 6,020,000
Northwest Airlines Corp.* ................. 100,000 3,250,000
UAL Corp.* ................................ 30,000 1,950,000
------------
15,679,756
------------
APPAREL, TEXTILE (0.0%)
Unifi, Inc.* .............................. 4,800 102,000
------------
AUTO RELATED (0.2%)
AutoNation, Inc.* ......................... 60,000 1,068,750
Budget Group, Inc. (Class A)* ............. 10,000 123,125
DaimlerChrysler AG ........................ 30,000 2,623,699
------------
3,815,574
------------
AUTOS & TRUCKS (0.1%)
UMW Holdings BHD(b) ....................... 170,000 344,431
Valeo SA .................................. 24,000 1,982,488
------------
2,326,919
------------
FOOD SERVICES, LODGING (0.5%)
Compass Group PLC ......................... 90,000 893,001
Starbucks Corp.* .......................... 193,400 7,264,587
U.S. Foodservice* ......................... 55,000 2,344,375
------------
10,501,963
------------
HOUSEHOLD FURNITURE, APPLIANCES (0.5%)
Newell Rubbermaid, Inc. ................... 232,881 10,828,967
------------
LEISURE RELATED (1.6%)
Berjaya Sports Toto BHD(b) ................ 140,000 291,943
</TABLE>
47
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
Carnival Corp. (Class A) ........... 197,400 $ 9,573,900
Cyrk, Inc.* ........................ 219,700 1,331,931
Harley-Davidson, Inc. .............. 160,400 8,721,750
Hasbro, Inc. ....................... 30,000 838,125
MGM Grand, Inc.* ................... 120,000 5,880,000
Royal Caribbean Cruises Ltd. ....... 84,000 3,675,000
SHIMANO, INC. ...................... 55,000 1,303,674
------------
31,616,323
------------
PHOTO & OPTICAL (0.1%)
Fuji Photo Film Co. ................ 50,000 1,894,598
------------
RETAIL--GENERAL (3.1%)
Bed Bath & Beyond, Inc.* ........... 50,000 1,925,000
Castorama Dubois ................... 8,000 1,899,884
Circuit City Stores-Circuit City
Group ............................ 103,100 9,588,300
Genesis Direct, Inc.* .............. 94,400 177,000
Home Depot, Inc. ................... 141,568 9,122,288
Kingfisher PLC ..................... 152,326 1,754,105
Kohl's Corp.* ...................... 124,000 9,571,250
Koninklijke Ahold NV ............... 75,000 2,586,527
Limited, Inc. ...................... 277,500 12,591,563
Next PLC ........................... 213,000 2,588,874
Wal-Mart Stores, Inc. .............. 230,300 11,111,975
------------
62,916,766
------------
TOTAL CONSUMER CYCLICALS (6.9%) 139,682,866
------------
CONSUMER NONCYCLICALS
BEVERAGES (0.6%)
Coca-Cola Enterprises, Inc. ........ 346,500 10,308,375
Diageo PLC ......................... 80,000 836,054
Fomento Economico Mexico
(ADR) ............................ 20,000 797,500
------------
11,941,929
------------
CONTAINERS (0.4%)
Sealed Air Corp.* .................. 131,400 8,524,575
------------
DRUGS (2.8%)
Banyu Pharmaceutical Co. Ltd. ...... 110,000 1,820,137
Biogen, Inc.* ...................... 59,000 3,794,438
Bristol-Myers Squibb Co. ........... 256,000 18,032,000
Human Genome Sciences, Inc.* ....... 60,600 2,393,700
Millennium Pharmaceuticals,
Inc.* ............................ 85,000 3,060,000
Novartis AG ........................ 900 1,316,621
Sanofi-Synthelabo SA* .............. 36,000 1,529,613
Santen Pharmaceutical Co. Ltd. ..... 112,000 2,159,014
Schering-Plough Corp. .............. 318,600 16,885,800
Takeda Chemical Industries ......... 50,000 2,320,675
Yamanouchi Pharmaceutical Co.
Ltd. ............................. 102,000 3,907,173
------------
57,219,171
------------
FOODS (0.2%)
Ajinomoto Co., Inc. ................ 150,000 1,712,584
Tyson Foods, Inc. (Class A) ........ 116,200 2,614,500
------------
4,327,084
------------
HOSPITAL SUPPLIES & SERVICES (1.2%)
Columbia/HCA Healthcare
Corp. ............................ 150,000 3,421,875
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------
<S> <C> <C>
Health Management Associates,
Inc. (Class A)* .................. 130,000 $ 1,462,500
HEALTHSOUTH Corp.* ................. 50,000 746,875
Medtronic, Inc. .................... 165,700 12,903,888
PT Tempo Scan Pacific .............. 206,000 85,523
Sun International Hotels Ltd.* ..... 65,300 2,922,175
Tenet Healthcare Corp.* ............ 164,300 3,049,819
------------
24,592,655
------------
RETAIL--FOOD (1.2%)
Delhaize-Le Lion SA ................ 18,800 1,602,449
Familymart Co. ..................... 30,200 1,386,697
Food Lion, Inc. (Class A) .......... 274,400 3,258,500
Kroger Co.* ........................ 426,890 11,926,239
Safeway, Inc.* ..................... 121,225 6,000,638
------------
24,174,523
------------
SOAPS & TOILETRIES (0.4%)
Benckiser NV (B Shares) ............ 28,000 1,496,159
Gillette Co. ....................... 53,650 2,199,650
Kao Corp. .......................... 133,000 3,741,209
------------
7,437,018
------------
TOBACCO (1.0%)
Japan Tobacco, Inc. ................ 150 1,662,944
Loews Corp. ........................ 12,000 949,500
Philip Morris Cos., Inc. ........... 276,500 11,111,844
Seita .............................. 42,700 2,469,024
Tabacalera SA--A ................... 154,000 3,116,638
------------
19,309,950
------------
TOTAL CONSUMER NONCYCLICALS (7.8%)
157,526,905
------------
CREDIT SENSITIVE
BANKS (3.8%)
Allied Irish Bank .................. 30,000 397,520
Banca Nazionale del Lavoro
(BNL) ............................ 20,000 51,834
Banco Santander Central
Hispano SA ....................... 188,400 1,964,769
Bangkok Bank Public Co. Ltd.*....... 20,000 74,827
Bank of America Corp. .............. 237,000 17,375,062
Bank of Ireland .................... 60,000 1,009,830
Bank of Scotland ................... 120,000 1,590,081
Bank of Tokyo-Mitsubishi Ltd. ...... 90,000 1,282,949
Bank One Corp. ..................... 208,500 12,418,781
Banque Nationale de Paris .......... 23,700 1,977,284
Barclays PLC ....................... 18,000 524,159
Citigroup, Inc. .................... 496,700 23,593,250
ForeningsSparbanken AB ............. 54,450 771,520
Istituto Bancario San Paolo di
Torino Spa ....................... 35,511 484,001
National Australia Bank Ltd. ....... 45,000 741,825
National Bank of Canada ............ 30,000 392,782
Nordbanken Holding AB .............. 20,000 117,369
PT Bank Dagang Nasional
Indonesia Tbk* ................... 1,230,000 0
Royal Bank of Scotland Group
PLC .............................. 116,000 2,364,173
Shizuoka Bank Ltd. ................. 25,000 249,442
Societe Generale (Class A) ......... 16,600 2,929,271
Standard Chartered PLC ............. 55,000 898,837
Thai Farmers Bank Public Co.--
Warrants (expire 09/15/02)* ...... 2,875 678
</TABLE>
48
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
UBS AG--Registered ........................ 6,400 $ 1,913,772
Unicredito Italiano Spa ................... 610,500 2,685,373
United Overseas Bank Ltd. ................. 4,000 27,961
------------
75,837,350
------------
FINANCIAL SERVICES (3.4%)
A.G. Edwards, Inc. ........................ 50,000 1,612,500
Acom Co. Ltd. ............................. 20,000 1,729,130
Associates First Capital Corp.
(Class A) ............................... 336,500 14,911,156
Credit Saison Co. ......................... 62,000 1,297,758
Irish Life & Permanent PLC ................ 60,850 644,012
Legg Mason, Inc. .......................... 40,000 1,540,000
MBIA, Inc. ................................ 79,900 5,173,525
MBNA Corp. ................................ 700,000 21,437,500
Merrill Lynch & Co., Inc. ................. 59,000 4,716,313
Morgan Stanley Dean Witter &
Co. ..................................... 91,000 9,327,500
Peregrine Investment Holdings
Ltd.* ................................... 472,000
Radian Group, Inc. ........................ 133,800 6,531,113
Takefuji Corp. ............................ 6,000 620,998
Worms Et Compagnie* ....................... 2,500 118,510
------------
69,660,015
------------
INSURANCE (1.2%)
Ace Ltd. .................................. 5,000 141,250
American International Group,
Inc. .................................... 68,000 7,960,250
CGU PLC ................................... 125,000 1,807,179
CNA Financial Corp.* ...................... 10,000 403,125
Everest Reinsurance Holdings,
Inc. .................................... 115,000 3,751,875
Gallagher (Arthur J.) & Co. ............... 50,000 2,475,000
ING Groep N.V. ............................ 54,000 2,927,267
Royal & Sun Alliance Insurance
Group PLC ............................... 214,396 1,924,367
Sampo Insurance Co. (A Shares)............. 22,000 638,320
UnumProvident Corp. ....................... 48,000 2,628,000
------------
24,656,633
------------
REAL ESTATE (0.2%)
Boston Properties, Inc. ................... 30,000 1,076,250
Cheung Kong Holdings Ltd. ................. 40,000 355,748
China Resources Enterprise Ltd............. 440,000 776,974
City Developments Ltd. .................... 4,000 25,612
Slough Estates PLC ........................ 140,700 799,016
------------
3,033,600
------------
UTILITY--ELECTRIC (0.6%)
AES Corp.* ................................ 114,200 6,637,875
Electricidade de Portugal SA .............. 5,000 90,141
Endesa SA ................................. 120,000 2,562,366
Fortum Oyj ................................ 44,938 217,618
Korea Electric Power Corp.
(ADR) ................................... 100,000 2,050,000
------------
11,558,000
------------
UTILITY--GAS (0.0%)
Anglian Water PLC (B Shares) .............. 128,600 93,316
------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
UTILITY--TELEPHONE (0.5%)
AT&T Corp. ................................ 40 $ 2,253
British Telecommunications PLC............. 129,600 2,173,186
Sprint Corp. (FON Group) .................. 92,800 4,901,000
Telecom Italia Spa ........................ 110,800 601,776
Telefonica SA* ............................ 51,816 2,499,097
Telekom Malaysia BHD(b) ................... 38,500 129,550
------------
10,306,862
------------
TOTAL CREDIT SENSITIVE (9.7%) ........... 195,145,776
------------
ENERGY
OIL--DOMESTIC (0.4%)
Kerr-McGee Corp. .......................... 59,300 2,976,119
Louis Dreyfus Natural Gas
Corp.* .................................. 150,000 3,234,375
Tom Brown, Inc.* .......................... 141,000 2,194,312
------------
8,404,806
------------
OIL--INTERNATIONAL (0.9%)
BP Amoco PLC .............................. 48,700 873,470
ENI Spa ................................... 300,000 1,793,532
Gulf Indonesia Resources Ltd.* ............ 17,900 205,850
Repsol SA ................................. 41,850 855,598
Total Fina SA--B .......................... 22,234 2,871,999
Total Fina SA (ADR) ....................... 183,000 11,792,063
------------
18,392,512
------------
OIL--SUPPLIES & CONSTRUCTION (0.3%)
Noble Drilling Corp.* ..................... 262,700 5,171,906
Stolt Comex Seaway S.A.
(ADR)* .................................. 50,000 537,500
Woodside Petroleum Ltd. ................... 120,000 809,480
------------
6,518,886
------------
TOTAL ENERGY (1.6%) ..................... 33,316,204
------------
TECHNOLOGY
ELECTRONICS (4.6%)
Alps Electric Co. Ltd. .................... 54,000 1,266,567
Cisco Systems, Inc.* ...................... 382,000 24,639,000
CMG PLC* .................................. 36,000 942,691
Intel Corp. ............................... 269,200 16,017,400
Micron Technology, Inc.* .................. 50,000 2,015,625
Sanmina Corp.*+ ........................... 154,900 11,753,038
Seagate Technology, Inc.* ................. 189,600 4,858,500
Solectron Corp.*+ ......................... 392,832 26,197,002
The Swatch Group AG ....................... 9,050 1,294,773
Tokyo Electron Ltd. ....................... 50,000 3,396,211
------------
92,380,807
------------
OFFICE EQUIPMENT (2.2%)
Canon, Inc. ............................... 74,000 2,130,554
Ceridian Corp.* ........................... 235,100 7,684,831
Dell Computer Corp.* ...................... 467,000 17,279,000
International Business Machines
Corp. ................................... 86,800 11,218,900
Policy Management Systems
Corp.* .................................. 213,600 6,408,000
------------
44,721,285
------------
OFFICE EQUIPMENT SERVICES (2.6%)
Electronic Data Systems Corp. ............. 121,000 6,844,062
</TABLE>
49
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------------
<S> <C> <C>
First Data Corp. ..................... 306,000 $ 14,974,875
Fiserv, Inc.* ........................ 95,000 2,974,688
McKesson HBOC, Inc. .................. 110,000 3,533,750
Microsoft Corp.* ..................... 195,200 17,604,600
Misys PLC ............................ 269,000 2,304,150
Novell, Inc.* ........................ 200,000 5,300,000
--------------
53,536,125
--------------
TELECOMMUNICATIONS (4.8%)
Cable & Wireless PLC (ADR) ........... 70,000 2,773,750
China Telecom (Hong Kong)
Ltd. ............................... 300,000 833,301
Clearnet Communications, Inc.
(Class A)* ......................... 170,000 2,369,375
Energis PLC .......................... 40,000 954,680
Equant N.V.* ......................... 10,000 941,250
Equant N.V.--New York
Registered Shares* ................. 20,000 1,846,192
Global TeleSystems Group, Inc.*....... 189,000 15,309,000
Helsinki Telephone Corp. ............. 8,300 394,226
Hyperion Telecommunications,
Inc. (Class A)* .................... 148,800 2,799,300
Intermedia Communications,
Inc. ............................... 131 3,930
Keppel Telecommunications &
Transportation Ltd. ................ 193,000 272,094
Korea Telecom Corp. (ADR)* ........... 22,271 890,840
Lucent Technologies, Inc. ............ 183,800 12,395,012
Mannesmann AG ........................ 21,000 3,144,102
MCI WorldCom, Inc.* .................. 168,800 14,559,000
Millicom International Cellular
SA* ................................ 40,000 1,260,000
Nextel Communications, Inc.
(Class A)* ......................... 120,000 6,022,500
Nokia Oyj ............................ 81,400 7,144,185
NTL, Inc.* ........................... 75,200 6,481,300
NTT Mobile Communications
Network, Inc. ...................... 300 4,030,777
Orange PLC* .......................... 217,000 3,183,475
Pacific Internet Ltd.* ............... 4,400 208,450
RCN Corp.* ........................... 35,000 1,456,875
SK Telecom Co. Ltd. (ADR) ............ 681 11,578
SmarTone Telecommunications
Holdings Ltd. ...................... 300,000 1,067,244
Telstra Corp. Ltd. ................... 352,000 2,009,366
United Pan-Europe
Communications N.V.* ............... 30,400 1,651,082
Vodafone AirTouch PLC ................ 140,000 2,760,557
WinStar Communications, Inc.* ........ 1,424 69,420
--------------
96,842,861
--------------
TOTAL TECHNOLOGY (14.2%) ........... 287,481,078
--------------
DIVERSIFIED
MISCELLANEOUS (1.1%)
Citic Pacific Ltd. ................... 400,000 1,276,053
Suez Lyonnaise des Eaux .............. 7,000 1,264,146
Tomkins PLC .......................... 300,000 1,301,405
Tyco International Ltd. .............. 186,000 17,623,500
Vivendi--Rights* ..................... 15,600 18,363
--------------
TOTAL DIVERSIFIED (1.1%) ........... 21,483,467
--------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------------
<S> <C> <C>
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (49.6%)
(Cost $751,683,813)................. $1,000,978,445
--------------
PREFERRED STOCKS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.1%)
Chancellor Media Corp.
7.0% Conv. ......................... 11,500 1,766,688
--------------
TRUCKING, SHIPPING (0.1%)
CNF Trust I
5.0% Conv., Series A ............... 30,600 1,748,025
--------------
TOTAL BUSINESS SERVICES (0.2%) ..... 3,514,713
--------------
CONSUMER CYCLICALS
LEISURE RELATED (0.2%)
Royal Caribbean Cruises Ltd.
7.25% Series A ..................... 22,300 3,038,375
--------------
RETAIL--GENERAL (0.0%)
Hornbach Holding AG .................. 8,010 343,234
--------------
TOTAL CONSUMER CYCLICALS (0.2%) 3,381,609
--------------
CONSUMER NONCYCLICALS (0.0%)
DRUGS
Alkermes, Inc.
6.5% Conv. ......................... 11,100 532,106
--------------
CREDIT SENSITIVE (0.2%)
UTILITY--ELECTRIC
AES Trust I
5.375% Conv., Series A ............. 41,200 3,409,300
--------------
TECHNOLOGY
ELECTRONICS (0.0%)
Times Mirror Co.
4.25% Conv. ........................ 11,900 1,072,488
--------------
TELECOMMUNICATIONS (0.9%)
Adelphia Communications, Inc.
5.5% Conv., Series D ............... 11,800 2,280,350
Globalstar Telecommunications
Ltd.
8.0% Conv.+ ........................ 18,400 1,046,500
ICG Communications, Inc.
6.75% Conv. ........................ 24,200 1,279,575
IXC Communications, Inc.:
6.75% Conv. ........................ 12,400 468,100
6.75% Conv.+ ....................... 32,300 1,219,325
Nextel Strypes Trust
7.25% Conv. ........................ 112,900 4,741,800
Nextlink Communications:
6.5% Conv.+ ........................ 4,900 449,575
6.5% Conv. ......................... 32,800 3,009,400
WinStar Communications, Inc.
7.0% Conv.+ ........................ 64,100 3,645,687
--------------
18,140,312
--------------
TOTAL TECHNOLOGY (0.9%) ............ 19,212,800
--------------
TOTAL PREFERRED STOCKS (1.5%)
(Cost $25,529,737).................. 30,050,528
--------------
</TABLE>
50
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (1.5%)
P-Com, Inc.:
4.25% Conv., 11/01/02+ ............ $ 690,000 $ 393,300
4.25% Conv., 11/01/02 ............. 680,000 387,600
Time Warner Entertainment Co.
8.375%, 03/15/23 .................. 23,580,000 25,541,149
Time Warner, Inc.
6.625%, 05/15/29 .................. 4,600,000 4,052,094
------------
30,374,143
------------
PROFESSIONAL SERVICES (0.1%)
Doubleclick, Inc.
4.75% Conv., 03/15/06+ ............ 1,285,000 1,595,006
------------
TOTAL BUSINESS SERVICES (1.6%)..... 31,969,149
------------
CONSUMER CYCLICALS
AUTOS & TRUCKS (1.0%)
Ford Motor Co.
6.375%, 02/01/29 .................. 23,000,000 19,983,389
------------
LEISURE RELATED (0.1%)
CUC International, Inc.:
3.0% Conv., 02/15/02+ ............. 590,000 564,187
3.0% Conv., 02/15/02 .............. 1,180,000 1,128,375
------------
1,692,562
------------
RETAIL--GENERAL (0.1%)
Amazon.Com, Inc.
4.75% Conv., 02/01/09+ ............ 2,270,000 2,201,900
------------
TOTAL CONSUMER CYCLICALS (1.2%) 23,877,851
------------
CONSUMER NONCYCLICALS
DRUGS (0.3%)
MedImmune, Inc.:
7.0% Conv., 07/01/03 .............. 765,000 5,267,025
7.0% Conv. Sub. Note,
07/01/03+ ...................... 210,000 1,445,850
Quintiles Transnational Corp.
4.25% Conv., 05/31/00 ............. 450,000 502,875
------------
7,215,750
------------
HOSPITAL SUPPLIES & SERVICES (0.1%)
FPA Medical Management, Inc.
6.5% Conv., 12/15/01(a) ........... 1,130,000 113
RES-Care, Inc.:
6.0% Conv., 12/01/04+ ............. 1,095,000 1,398,862
6.0% Conv., 12/01/04 .............. 145,000 185,238
Sunrise Assisted Living, Inc.
5.5% Conv., 06/15/02 .............. 615,000 681,881
------------
2,266,094
------------
TOTAL CONSUMER NONCYCLICALS (0.4%) 9,481,844
------------
CREDIT SENSITIVE
ASSET BACKED (2.3%)
Capital Auto Receivables Asset
Trust
Series 1999-1, Class A2
5.58%, 06/15/02 ................... 20,000,000 19,818,800
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------------
<S> <C> <C>
Carco Auto Loan Master Trust
Series 1998-1, Class A2
4.9825%, 06/15/05 ................. $15,930,000 $ 15,842,863
Citibank Credit Card Master
Trust I
Series 1999-2, Class A
5.875%, 03/10/11 .................. 12,000,000 11,235,000
------------
46,896,663
------------
BANKS (0.7%)
Citicorp
6.375%, 11/15/08 .................. 15,000,000 14,230,050
------------
FINANCIAL SERVICES (1.6%)
Household Finance Corp.
6.5%, 11/15/08 .................... 20,100,000 19,077,473
Merrill Lynch & Co., Inc.
6.0%, 02/17/09 .................... 13,290,000 12,277,302
------------
31,354,775
------------
MORTGAGE RELATED (15.0%)
Federal Home Loan Mortgage
Corp.:
GOLD 7.0%, 09/01/11 ............... 16,225,098 16,306,953
GOLD 7.0%, 01/01/12 ............... 3,457,550 3,474,994
Federal National Mortgage
Association:
7.0%, 05/01/26 .................... 4,598,781 4,545,619
7.0%, 09/01/27 .................... 1,645,815 1,626,772
7.0%, 10/01/27 .................... 15,401,538 15,246,152
7.5%, 11/01/27 .................... 16,014,838 16,196,430
7.0%, 01/01/28 .................... 7,174,219 7,101,839
6.5%, 03/01/28 .................... 5,480,425 5,300,842
6.5%, 07/01/28 .................... 391,864 379,023
6.5%, 09/01/28 .................... 5,701,850 5,515,012
6.5%, 10/01/28 .................... 5,771,075 5,581,968
8.0%, 11/01/28 .................... 7,572,586 7,778,409
8.0%, 12/01/28 .................... 12,405,003 12,730,076
6.0%, 01/01/29 .................... 15,389,677 14,484,163
6.0%, 03/01/29 .................... 20,146,669 18,961,260
7.5%, 03/01/29 .................... 1,173,330 1,186,634
7.5%, 04/01/29 .................... 14,402,550 14,565,860
Government National Mortgage
Association:
7.0%, 12/15/25 .................... 109,086 107,795
7.0%, 07/15/27 .................... 8,734,143 8,630,819
7.0%, 02/15/28 .................... 23,185,220 22,910,938
6.5%, 03/15/28 .................... 11,525,501 11,110,272
6.5%, 04/15/28 .................... 8,272,721 7,974,680
6.5%, 05/15/28 .................... 2,686,593 2,589,803
7.0%, 06/15/28 .................... 41,910 41,414
7.0%, 10/15/28 .................... 94,151 93,038
7.0%, 12/15/28 .................... 35,777,770 35,354,519
6.5%, 03/15/29 .................... 54,704,625 52,733,782
Prudential Securities Secured
Financing
Series 1999-NRF1, Class A2
6.48%, 01/15/09 ................... 11,000,000 10,621,930
------------
303,150,996
------------
</TABLE>
51
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
UTILITY--ELECTRIC (0.8%)
Consolidated Edison, Inc.
Series 98-A
6.25%, 02/01/08 ......................... $15,780,000 $ 15,266,519
--------------
U.S. GOVERNMENT (13.9%)
U.S. Treasury:
6.75% Note, 04/30/00 .................... 11,175,000 11,307,703
6.0% Note, 08/15/00 ..................... 38,495,000 38,735,594
6.25% Note, 04/30/01 .................... 31,200,000 31,580,265
6.5% Note, 08/31/01 ..................... 73,340,000 74,715,125
7.25% Note, 05/15/04 .................... 11,800,000 12,519,068
6.875% Note, 05/15/06 ................... 30,905,000 32,537,186
8.125% Bond, 08/15/19 ................... 29,670,000 35,835,723
6.125% Bond, 11/15/27 ................... 21,025,000 20,827,891
5.25% Bond, 11/15/28 .................... 8,220,000 7,274,700
5.25% Bond, 02/15/29 .................... 17,630,000 15,822,925
--------------
281,156,180
--------------
TOTAL CREDIT SENSITIVE (34.3%) .......... 692,055,183
--------------
ENERGY
GAS (0.4%)
RAS Laffan Liquid Natural Gas
8.294%, 03/15/14+ ....................... 7,730,000 7,133,476
--------------
OIL--SUPPLIES & CONSTRUCTION (0.0%)
Diamond Offshore Drilling, Inc.
3.75% Conv., 02/15/07 ................... 350,000 348,250
Nabors Industries, Inc.
5.0% Conv., 05/15/06 .................... 350,000 473,375
--------------
821,625
--------------
RAILROADS (0.4%)
Burlington Northern Santa Fe
7.082%, 05/13/29 ........................ 8,200,000 8,031,564
--------------
TOTAL ENERGY (0.8%) ..................... 15,986,665
--------------
TECHNOLOGY
ELECTRONICS (1.2%)
America Online, Inc.
4.0% Conv., 11/15/02 .................... 695,000 5,885,347
Amkor Technologies, Inc.
5.75% Conv., 05/01/03 ................... 2,470,000 2,420,600
EMC Corp.
3.25% Conv., 03/15/02 ................... 730,000 3,545,975
HNC Software, Inc.
4.75% Conv., 03/01/03 ................... 1,175,000 1,148,563
Level One Communications, Inc.:
4.0% Conv., 09/01/04+ ................... 790,000 1,541,487
4.0% Conv., 09/01/04 .................... 1,045,000 2,039,056
LSI Logic Corp.
4.25% Conv., 03/15/04+ .................. 2,345,000 3,801,831
Mindspring Enterprises, Inc.
5.0% Conv., 04/15/06 .................... 1,040,000 981,500
Photronics, Inc.
6.0% Conv., 06/01/04 .................... 1,840,000 2,007,900
Wind River Systems, Inc.
5.0% Conv., 08/01/02+ ................... 1,100,000 957,000
--------------
24,329,259
--------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS (0.7%)
At Home Corp.
0.5246% Conv., 12/28/18+ ................ $ 1,585,000 $ 1,258,094
CNET, Inc.
5.0%, 03/01/06 .......................... 690,000 1,159,200
Comverse Technology, Inc.:
5.75% Conv., 10/01/06 ................... 1,605,000 3,990,431
5.75% Conv., 10/01/06+ .................. 805,000 2,001,431
Global TeleSystems Group, Inc.
5.75% Conv., 07/01/10 ................... 3,265,000 5,183,188
Nextel Communications, Inc.
4.75% Conv., 07/01/07+ .................. 940,000 1,142,100
NTL, Inc.
7.0% Conv., 12/15/08 .................... 260,000 412,231
--------------
15,146,675
--------------
TOTAL TECHNOLOGY (1.9%) ................. 39,475,934
--------------
TOTAL LONG-TERM DEBT SECURITIES (40.2%)
(Amortized Cost $815,377,450)............. 812,846,626
--------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER
BellSouth Corp.
5.09%, due 07/29/99 ..................... 15,000,000 14,940,850
Ford Motor Credit Co.
5.75%, due 07/01/99 ..................... 50,000,000 50,000,000
Teachers Insurance and Annuity
Association
5.22%, due 07/30/99 ..................... 13,000,000 12,945,544
--------------
TOTAL COMMERCIAL PAPER (3.9%) 77,886,394
--------------
TIME DEPOSITS (1.6%)
Societe Generale
5.87%, due 07/01/99 ..................... 33,200,000 33,200,000
--------------
U.S. GOVERNMENT AGENCIES (2.7%)
Federal Home Loan Bank
4.6%, due 07/01/99 ...................... 53,900,000 53,900,000
--------------
TOTAL SHORT-TERM DEBT
SECURITIES (8.2%)
(Amortized Cost $164,986,394)............. 164,986,394
--------------
TOTAL INVESTMENTS (99.5%)
(Cost/Amortized Cost
$1,757,577,394)........................... 2,008,861,993
OTHER ASSETS
LESS LIABILITIES (0.5%) .................. 10,474,811
--------------
NET ASSETS (100.0%) ....................... $2,019,336,804
==============
</TABLE>
52
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
DISTRIBUTION OF INVESTMENTS BY GLOBAL REGION
As a Percentage of Total Investments
<S> <C>
Australia ........................ 0.2%
Canada ........................... 0.1
France ........................... 1.7
Germany .......................... 0.3
Japan ............................ 1.9
Latin America .................... 0.5
Netherlands ...................... 0.7
Scandinavia ...................... 0.5
Southeast Asia ................... 0.6
Spain ............................ 0.6
Switzerland ...................... 0.4
United Kingdom ................... 3.1
United States** .................. 88.9
Other European Countries ......... 0.5
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Includes Short-Term Debt Securities of 8.2%.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1999, these securities amounted to $69,745,651 or
3.5% of net assets.
(a) Security in default.
(b) Fair value securities.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
53
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.3%)
Akzo Nobel N.V. ........................ 28,000 $ 1,179,580
Georgia Gulf Corp. ..................... 292,000 4,927,500
GP Batteries International Ltd.
--Warrants (expire 11/15/00)*......... 5,750 4,121
-----------
6,111,201
-----------
CHEMICALS--SPECIALTY (0.2%)
Lyondell Chemical Co. .................. 264,500 5,455,312
-----------
PAPER (0.1%)
UPM-Kymmene Oyj ........................ 87,792 2,520,050
-----------
TOTAL BASIC MATERIALS (0.6%) .......... 14,086,563
-----------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.0%)
Rentokil Initial PLC ................... 320,000 1,249,349
-----------
PRINTING, PUBLISHING &
BROADCASTING (5.8%)
AT&T Corp.--Liberty Media
Group--A* ............................ 582,782 21,417,230
Cablevision Systems Corp.
(Class A) ............................ 203,500 14,245,000
CBS Corp.* ............................. 693,650 30,130,422
Chancellor Media Corp.* ................ 132,800 7,320,600
Clear Channel Communications,
Inc.* ................................ 117,000 8,065,687
Comcast Corp. (Class A) SPL ............ 149,000 5,727,188
Gannett Co., Inc. ...................... 97,000 6,923,375
MediaOne Group, Inc.* .................. 82,100 6,106,188
Seat Pagine Gialle Spa ................. 3,356,000 4,591,422
Television Broadcasts Ltd. ............. 426,000 1,998,685
Time Warner, Inc. ...................... 245,000 18,007,500
United News & Media PLC ................ 415,000 3,993,343
USA Networks, Inc.* .................... 74,200 2,977,275
Wolters Kluwer N.V. .................... 59,800 2,383,405
-----------
133,887,320
-----------
PROFESSIONAL SERVICES (0.7%)
Cap Gemini SA .......................... 31,800 5,004,047
Nielsen Media Research, Inc.* .......... 390,000 11,407,500
-----------
16,411,547
-----------
TRUCKING, SHIPPING (0.3%)
Brambles Industries Ltd. ............... 80,000 2,099,530
Frontline Ltd.--Warrants (expire
05/11/01)* ........................... 76,080 0
Knightsbridge Tankers Ltd. ............. 60,700 1,062,250
OMI Corp.* ............................. 1,677,900 3,460,669
-----------
6,622,449
-----------
TOTAL BUSINESS SERVICES (6.8%)......... 158,170,665
-----------
CAPITAL GOODS
AEROSPACE (0.5%)
British Aerospace PLC .................. 110,000 714,472
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
General Motors Corp.
(Class H)* ........................... 153,000 $ 8,606,250
Loral Space &
Communications*+ ..................... 220,000 3,960,000
-----------
13,280,722
-----------
BUILDING & CONSTRUCTION (0.9%)
ABB AG ................................. 300 444,674
ABB Ltd.* .............................. 25,000 2,360,314
American Standard Companies,
Inc.* ................................ 308,800 14,822,400
New World Infrastructure Ltd. .......... 1,561,000 2,937,577
-----------
20,564,965
-----------
BUILDING MATERIALS & FOREST
PRODUCTS (0.9%)
Lafarge SA ............................. 8,000 761,606
Louisiana-Pacific Corp. ................ 227,000 5,391,250
Martin Marietta Materials, Inc. ........ 241,200 14,230,800
Unidare PLC--Units ..................... 1,700 3,721
-----------
20,387,377
-----------
ELECTRICAL EQUIPMENT (1.3%)
General Electric Co. ................... 241,500 27,289,500
Schneider SA ........................... 42,000 2,361,329
-----------
29,650,829
-----------
MACHINERY (1.2%)
AlliedSignal, Inc. ..................... 154,500 9,733,500
United Technologies Corp. .............. 253,400 18,165,612
-----------
27,899,112
-----------
TOTAL CAPITAL GOODS (4.8%) ............ 111,783,005
-----------
CONSUMER CYCLICALS
AIRLINES (1.1%)
Alaska Air Group, Inc.* ................ 100,000 4,175,000
British Airways PLC .................... 580,500 4,008,548
Continental Airlines, Inc.
(Class B)* ........................... 360,000 13,545,000
Northwest Airlines Corp.* .............. 120,000 3,900,000
-----------
25,628,548
-----------
APPAREL, TEXTILE (0.0%)
Unifi, Inc.* ........................... 9,700 206,125
-----------
AUTO RELATED (0.4%)
Autoliv, Inc.+ ......................... 76,400 2,336,474
AutoNation, Inc.* ...................... 200,000 3,562,500
Bridgestone Corp. ...................... 13,000 393,646
Budget Group, Inc. (Class A)* .......... 60,000 738,750
DaimlerChrysler AG ..................... 40,199 3,515,669
-----------
10,547,039
-----------
AUTOS & TRUCKS (0.1%)
Honda Motor Co. Ltd. ................... 33,000 1,400,596
-----------
FOOD SERVICES, LODGING (0.6%)
Starbucks Corp.* ....................... 269,000 10,104,312
U.S. Foodservice* ...................... 115,000 4,901,875
-----------
15,006,187
-----------
HOUSEHOLD FURNITURE, APPLIANCES (0.6%)
Newell Rubbermaid, Inc. ................ 291,200 13,540,800
-----------
</TABLE>
54
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------------------
<S> <C> <C>
LEISURE RELATED (2.7%)
Brass Eagle, Inc.* ..................... 156,100 $ 2,926,875
Carnival Corp. (Class A) ............... 264,500 12,828,250
Cendant Corp.* ......................... 500,000 10,250,000
Cyrk, Inc.* ............................ 309,400 1,875,738
Harley-Davidson, Inc. .................. 211,600 11,505,750
Hasbro, Inc. ........................... 50,000 1,396,875
MGM Grand, Inc.* ....................... 215,000 10,535,000
Royal Caribbean Cruises Ltd. ........... 148,000 6,475,000
Sankyo Co. Ltd. ........................ 92,000 4,407,049
TABCORP Holdings Ltd. .................. 216,600 1,453,969
-----------
63,654,506
-----------
PHOTO & OPTICAL (0.2%)
Fuji Photo Film Co. .................... 104,000 3,940,763
-----------
RETAIL--GENERAL (4.0%)
Bed Bath & Beyond, Inc.* ............... 100,000 3,850,000
Circuit City Stores-Circuit City
Group ................................ 127,400 11,848,200
Dixons Group PLC ....................... 180,000 3,364,725
Genesis Direct, Inc.* .................. 225,200 422,250
Home Depot, Inc. ....................... 162,809 10,491,005
Kingfisher PLC ......................... 150,300 1,730,775
Kohl's Corp.* .......................... 153,400 11,840,562
Koninklijke Ahold N.V. ................. 119,000 4,103,957
Limited, Inc. .......................... 595,125 27,003,797
Next PLC ............................... 305,420 3,712,178
Wal-Mart Stores, Inc. .................. 286,670 13,831,827
-----------
92,199,276
-----------
TOTAL CONSUMER CYCLICALS (9.7%) 226,123,840
-----------
CONSUMER NONCYCLICALS
BEVERAGES (0.6%)
Coca-Cola Enterprises, Inc. ............ 404,000 12,019,000
Diageo PLC ............................. 280,000 2,926,190
-----------
14,945,190
-----------
CONTAINERS (0.5%)
Sealed Air Corp.* ...................... 160,800 10,431,900
-----------
DRUGS (3.5%)
AstraZeneca Group PLC .................. 64,450 2,494,917
Biogen, Inc.* .......................... 75,000 4,823,438
Bristol-Myers Squibb Co. ............... 321,000 22,610,437
Genzyme Corp. (General
Division)* ........................... 30,000 1,455,000
Human Genome Sciences, Inc.* ........... 125,300 4,949,350
Millennium Pharmaceuticals,
Inc.* ................................ 154,100 5,547,600
Novartis AG ............................ 1,000 1,462,912
Sanofi-Synthelabo SA* .................. 95,200 4,044,978
Santen Pharmaceutical Co. Ltd. ......... 59,000 1,137,338
Schering-Plough Corp. .................. 428,300 22,699,900
Takeda Chemical Industries ............. 128,000 5,940,928
Yamanouchi Pharmaceutical Co.
Ltd. ................................. 115,000 4,405,146
-----------
81,571,944
-----------
FOODS (0.5%)
Ajinomoto Co., Inc. .................... 180,000 2,055,101
Grand Union Co.* ....................... 270,000 2,919,375
Nestle SA .............................. 930 1,678,759
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------------------
<S> <C> <C>
Ng Fung Hong Ltd. ...................... 1,834,000 $ 1,524,728
Tyson Foods, Inc. (Class A) ............ 147,650 3,322,125
-----------
11,500,088
-----------
HOSPITAL SUPPLIES & SERVICES
(1.6%)
Columbia/HCA Healthcare
Corp. ................................ 200,000 4,562,500
Genzyme Surgical Products* ............. 5,370 23,662
Health Management Associates,
Inc. (Class A)* ...................... 130,000 1,462,500
HEALTHSOUTH Corp.* ..................... 100,000 1,493,750
Medtronic, Inc. ........................ 208,500 16,236,937
Sun International Hotels Ltd.* ......... 212,200 9,495,950
Tenet Healthcare Corp.* ................ 209,900 3,896,269
-----------
37,171,568
-----------
RETAIL--FOOD (1.5%)
Familymart Co. ......................... 75,000 3,443,783
Food Lion, Inc. (Class A) .............. 544,400 6,464,750
Kroger Co.* ............................ 583,400 16,298,737
Safeway, Inc.* ......................... 157,450 7,793,775
Seven-Eleven Japan Co. Ltd. ............ 7,900 775,163
-----------
34,776,208
-----------
SOAPS & TOILETRIES (0.5%)
Gillette Co. ........................... 68,275 2,799,275
Kao Corp. .............................. 194,000 5,457,103
Shiseido Co. Ltd. ...................... 288,000 4,322,263
-----------
12,578,641
-----------
TOBACCO (1.2%)
Loews Corp. ............................ 15,000 1,186,875
Philip Morris Cos., Inc. ............... 359,000 14,427,313
Seita .................................. 51,201 2,960,573
Tabacalera SA-A ........................ 415,800 8,414,918
-----------
26,989,679
-----------
TOTAL CONSUMER NONCYCLICALS (9.9%) 229,965,218
-----------
CREDIT SENSITIVE
BANKS (4.8%)
Banca Nazionale del Lavoro
(BNL) ................................ 15,403 39,920
Bank of America Corp. .................. 318,000 23,313,375
Bank of Ireland ........................ 90,000 1,514,745
Bank of Scotland ....................... 500,000 6,625,337
Bank of Tokyo-Mitsubishi Ltd. .......... 457,000 6,514,528
Bank One Corp. ......................... 269,000 16,022,312
Banque Nationale de Paris .............. 38,150 3,182,843
Barclays PLC ........................... 50,000 1,455,997
Citigroup, Inc. ........................ 646,700 30,718,250
Commonwealth Bank of
Australia ............................ 86,000 1,363,837
Development Bank of Singapore
Ltd. ................................. 212,000 2,590,302
Fuji Bank Ltd. ......................... 306,000 2,136,709
HSBC Holdings PLC ...................... 20,000 708,596
National Australia Bank Ltd. ........... 48,000 791,280
Societe Generale (Class A) ............. 22,730 4,010,983
Standard Chartered PLC ................. 393,800 6,435,676
UBS AG--Registered ..................... 6,000 1,794,161
</TABLE>
55
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
Unicredito Italiano Spa ................. 580,800 $ 2,554,733
------------
111,773,584
------------
FINANCIAL SERVICES (4.4%)
A.G. Edwards, Inc. ...................... 100,000 3,225,000
Associates First Capital Corp.
(Class A) ............................. 427,000 18,921,438
Credit Saison Co. ....................... 51,200 1,071,697
Daiwa Securities Group, Inc. ............ 599,000 3,964,590
Legg Mason, Inc. ........................ 120,000 4,620,000
MBIA, Inc. .............................. 156,500 10,133,375
MBNA Corp. .............................. 849,100 26,003,687
Merrill Lynch & Co., Inc. ............... 74,000 5,915,375
Morgan Stanley Dean Witter &
Co. ................................... 122,400 12,546,000
Nomura Securities Co. ................... 61,000 715,124
Radian Group, Inc. ...................... 311,700 15,214,856
------------
102,331,142
------------
INSURANCE (1.7%)
Ace Ltd. ................................ 5,000 141,250
American International Group,
Inc. .................................. 91,000 10,652,688
Assicurazioni Generali .................. 24,000 832,645
CNA Financial Corp.* .................... 20,000 806,250
E. W. Blanch Holdings, Inc. ............. 11,000 750,063
Everest Reinsurance Holdings,
Inc. .................................. 230,000 7,503,750
Gallagher (Arthur J.) & Co. ............. 103,900 5,143,050
GIO Australia Holdings Ltd. ............. 100,000 242,659
ING Groep N.V. .......................... 93,000 5,041,410
UnumProvident Corp. ..................... 63,000 3,449,250
Zurich Allied AG ........................ 7,610 4,335,400
------------
38,898,415
------------
REAL ESTATE (0.3%)
Boston Properties, Inc. ................. 35,000 1,255,625
Cheung Kong Holdings Ltd. ............... 70,000 622,559
City Developments Ltd. .................. 43,000 275,325
New World Development Co. ............... 945,000 2,831,967
Sun Hung Kai Properties Ltd. ............ 222,000 2,024,477
------------
7,009,953
------------
UTILITY--ELECTRIC (0.5%)
AES Corp.* .............................. 144,000 8,370,000
Huaneng Power International,
Inc. .................................. 5,564,000 2,330,794
------------
10,700,794
------------
UTILITY--TELEPHONE (0.6%)
British Telecommunications PLC........... 90,992 1,525,791
Sprint Corp. (FON Group) ................ 119,600 6,316,375
Telecom Italia Spa ...................... 150,900 819,567
Telefonica SA* .......................... 62,424 3,010,723
Telekomunikacja Polska S.A.
(GDR)* ................................ 192,600 1,357,830
Viatel, Inc.* ........................... 10,000 561,250
------------
13,591,536
------------
TOTAL CREDIT SENSITIVE (12.3%) 284,305,424
------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
ENERGY
OIL--DOMESTIC (0.7%)
Kerr-McGee Corp. ........................ 148,200 $ 7,437,787
Louis Dreyfus Natural Gas
Corp.* ................................ 224,700 4,845,094
Tom Brown, Inc.* ........................ 200,000 3,112,500
------------
15,395,381
------------
OIL--INTERNATIONAL (1.1%)
BP Amoco PLC ............................ 149,481 2,681,051
Elf Aquitaine SA ........................ 13,000 1,910,107
Repsol SA ............................... 45,000 919,998
Royal Dutch Petroleum Co. ............... 50,788 2,978,645
Total Fina SA--B ........................ 21,470 2,773,312
Total Fina SA (ADR) ..................... 228,000 14,691,751
------------
25,954,864
------------
OIL--SUPPLIES & CONSTRUCTION (0.5%)
Noble Drilling Corp.* ................... 357,900 7,046,156
Stolt Comex Seaway S.A.
(ADR)* ................................ 285,650 3,070,738
Woodside Petroleum Ltd. ................. 282,400 1,904,975
------------
12,021,869
------------
TOTAL ENERGY (2.3%) .................... 53,372,114
------------
TECHNOLOGY
ELECTRONICS (6.0%)
ABB AB (B Shares) ....................... 173,800 2,308,719
Cisco Systems, Inc.* .................... 509,200 32,843,400
Hoya Corp. .............................. 43,000 2,429,801
Infosys Technologies Ltd.
(ADR) ................................. 70,600 4,094,800
Intel Corp. ............................. 355,300 21,140,350
Micron Technology, Inc.* ................ 100,000 4,031,250
Rohm Co. Ltd. ........................... 18,000 2,822,040
Sanmina Corp.* .......................... 160,100 12,147,587
Seagate Technology, Inc.* ............... 480,000 12,300,000
Solectron Corp.*+ ....................... 480,082 32,015,452
Sterling Commerce, Inc.* ................ 164,100 5,989,650
TDK Corp. ............................... 39,000 3,571,854
Tokyo Electron Ltd. ..................... 55,000 3,735,832
------------
139,430,735
------------
OFFICE EQUIPMENT (3.1%)
Canon, Inc. ............................. 45,000 1,295,607
Ceridian Corp.* ......................... 665,000 21,737,187
Dell Computer Corp.* .................... 611,500 22,625,500
International Business Machines
Corp. ................................. 107,500 13,894,375
Policy Management Systems
Corp.* ................................ 454,600 13,638,000
------------
73,190,669
------------
OFFICE EQUIPMENT SERVICES (4.4%)
Electronic Data Systems Corp. ........... 244,000 13,801,250
First Data Corp. ........................ 563,200 27,561,600
Fiserv, Inc.* ........................... 187,500 5,871,094
Fuji Soft ABC, Inc. ..................... 5,580 332,390
Intuit, Inc.* ........................... 11,200 1,009,400
McKesson HBOC, Inc. ..................... 131,098 4,211,523
Microsoft Corp.* ........................ 251,900 22,718,232
</TABLE>
56
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
Misys PLC .......................... 220,000 $ 1,884,435
Novell, Inc.* ...................... 900,000 23,850,000
-------------
101,239,924
-------------
TELECOMMUNICATIONS (7.2%)
Cable & Wireless PLC (ADR) ......... 150,000 5,943,750
China Telecom (Hong Kong)
Ltd. ............................. 1,032,000 2,866,556
Clearnet Communications, Inc.
(Class A)* ....................... 393,000 5,477,438
Equant N.V.* ....................... 53,520 5,037,570
Global TeleSystems Group, Inc.*..... 278,400 22,550,400
Hyperion Telecommunications,
Inc. (Class A)* .................. 303,700 5,713,356
Intermedia Communications, Inc. 98 2,940
Korea Telecom Corp. (ADR)* ......... 104,162 4,166,480
Lucent Technologies, Inc. .......... 236,250 15,932,109
Mannesmann AG ...................... 38,800 5,809,103
MCI WorldCom, Inc.* ................ 207,400 17,888,250
Millicom International Cellular
SA* .............................. 59,200 1,864,800
Nextel Communications, Inc.
(Class A)* ....................... 250,000 12,546,875
Nokia Oyj .......................... 168,768 14,812,159
NTL, Inc.* ......................... 160,000 13,790,000
NTT Mobile Communications
Network, Inc. .................... 380 5,105,651
Orange PLC* ........................ 583,550 8,560,906
RCN Corp.* ......................... 60,000 2,497,500
SK Telecom Co. Ltd. (ADR) .......... 206,000 3,502,000
SmarTone Telecommunications
Holdings Ltd. .................... 524,500 1,865,898
Telstra Corp. Ltd. ................. 322,000 1,838,113
United Pan-Europe
Communications N.V.* ............. 106,270 5,771,727
Vodafone AirTouch PLC .............. 213,400 4,207,878
WinStar Communications, Inc.* ...... 2,829 137,914
-------------
167,889,373
-------------
TOTAL TECHNOLOGY (20.7%) .......... 481,750,701
-------------
DIVERSIFIED
MISCELLANEOUS (1.0%)
Ratin A/S-B ........................ 385 45,176
Suez Lyonnaise des Eaux ............ 4,200 758,488
Tyco International Ltd. ............ 230,500 21,839,876
-------------
TOTAL DIVERSIFIED (1.0%) .......... 22,643,540
-------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (68.1%)
(Cost $1,218,960,857)............. 1,582,201,070
-------------
PREFERRED STOCKS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.1%)
Chancellor Media Corp.
7.0% Conv. ....................... 9,600 1,474,800
ProSieben Media AG ................. 23,000 1,061,560
-------------
2,536,360
-------------
TRUCKING, SHIPPING (0.1%)
CNF Trust I
5.0% Conv., Series A ............. 26,400 1,508,100
-------------
TOTAL BUSINESS SERVICES (0.2%)..... 4,044,460
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS (0.1%)
LEISURE RELATED
Royal Caribbean Cruises Ltd.
7.25% Series A ................... 18,500 $ 2,520,625
-------------
CONSUMER NONCYCLICALS (0.0%)
DRUGS
Alkermes, Inc.
6.5% Conv. ....................... 5,900 282,831
-------------
CREDIT SENSITIVE (0.1%)
UTILITY--ELECTRIC
AES Trust I
5.375% Conv., Series A ........... 35,200 2,912,800
-------------
TECHNOLOGY
ELECTRONICS (0.0%)
Times Mirror Co.
4.25% Conv. ...................... 11,700 1,054,463
-------------
TELECOMMUNICATIONS (0.7%)
Adelphia Communications, Inc.
5.5% Conv., Series D ............. 9,900 1,913,175
Globalstar Telecommunications
Ltd.
8.0% Conv.+ ....................... 15,400 875,875
ICG Communications, Inc.
6.75% Conv. ...................... 20,100 1,062,788
IXC Communications, Inc.:
6.75% Conv. ...................... 17,600 664,400
6.75% Conv.+ ...................... 23,600 890,900
Nextel Strypes Trust
7.25% Conv. ...................... 94,400 3,964,800
Nextlink Communications
6.5% Conv. ....................... 31,500 2,890,125
WinStar Communications, Inc.
7.0% Conv.+ ...................... 52,500 2,985,937
-------------
15,248,000
-------------
TOTAL TECHNOLOGY (0.7%) 16,302,463
-------------
TOTAL PREFERRED STOCKS (1.1%)
(Cost $22,072,310)................ 26,063,179
-------------
PRINCIPAL
AMOUNT
-----------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (0.2%)
CHEMICALS--SPECIALTY
Lyondell Chemical Co.
9.625%, 05/01/07+ ................ $3,400,000 3,480,750
-------------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.3%)
P-Com, Inc.:
4.25% Conv., 11/01/02+ ........... 575,000 327,750
4.25% Conv., 11/01/02 ............. 560,000 319,200
Time Warner, Inc.
6.625%, 05/15/29 ................. 8,450,000 7,443,520
-------------
8,090,470
-------------
PROFESSIONAL SERVICES (0.1%)
Doubleclick, Inc.
4.75% Conv., 03/15/06+ ........... 1,075,000 1,334,344
-------------
TOTAL BUSINESS SERVICES (0.4%)..... 9,424,814
-------------
</TABLE>
57
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS
AUTO RELATED (0.3%)
Federal Mogul Corp.
7.75%, 07/01/06 .................. $6,775,000 $ 6,473,194
------------
AUTOS & TRUCKS (0.4%)
Ford Motor Co.
6.375%, 02/01/29 ................. 11,500,000 9,991,694
------------
LEISURE RELATED (0.0%)
CUC International, Inc.
3.0% Conv., 02/15/02 ............. 1,475,000 1,410,469
------------
RETAIL--GENERAL (0.1%)
Amazon.Com, Inc.
4.75% Conv., 02/01/09+ ........... 1,895,000 1,838,150
------------
TOTAL CONSUMER CYCLICALS (0.8%) 19,713,507
------------
CONSUMER NONCYCLICALS
DRUGS (0.2%)
MedImmune, Inc.:
7.0% Conv., 07/01/03 ............. 775,000 5,335,875
7.0% Conv. Sub. Note,
07/01/03+ ....................... 40,000 275,400
Quintiles Transnational Corp.
4.25% Conv., 05/31/00+ ........... 375,000 419,062
------------
6,030,337
------------
HOSPITAL SUPPLIES & SERVICES (0.1%)
FPA Medical Management, Inc.
6.5% Conv., 12/15/01(a)+ ......... 925,000 93
RES-Care, Inc.:
6.0% Conv., 12/01/04+ ............ 820,000 1,047,550
6.0% Conv., 12/01/04 .............. 250,000 319,375
Sunrise Assisted Living, Inc.
5.5% Conv., 06/15/02 ............. 520,000 576,550
------------
1,943,568
------------
TOTAL CONSUMER NONCYCLICALS (0.3%) 7,973,905
------------
CREDIT SENSITIVE
ASSET BACKED (0.6%)
Carco Auto Loan Master Trust
Series 1999-1, Class A1
5.65%, 03/15/03 .................. 6,500,000 6,464,445
Citibank Credit Card Master
Trust I
Series 1999-2, Class A
5.875%, 03/10/11 ................. 8,300,000 7,770,875
------------
14,235,320
------------
BANKS (1.1%)
Citicorp
6.375%, 11/15/08 ................. 5,000,000 4,743,350
Dresdner Funding Trust I
8.151%, 06/30/31+ ................ 4,500,000 4,306,685
Fuji Bank Ltd.
9.87%, 12/31/49+ ................. 7,000,000 6,090,000
Grupo Financiero Banorte
Zero Coupon, 12/05/02 ............ 20,800 2,207
St. George Bank Ltd.
7.15%, 10/15/05+ ................. 9,525,000 9,388,888
------------
24,531,130
------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES (0.7%)
Household Finance Corp.
5.875%, 02/01/09 ................. $8,000,000 $ 7,268,320
Morgan Stanley Dean
Witter & Co.
5.625%, 01/20/04 ................. 10,300,000 9,927,552
------------
17,195,872
------------
FOREIGN GOVERNMENT (0.1%)
United Mexican States
10.375%, 02/17/09 ................ 2,020,000 2,027,575
------------
MORTGAGE RELATED (7.9%)
Federal Home Loan Mortgage
Corp.:
GOLD 7.0%, 09/01/11 .............. 5,775,035 5,804,170
GOLD 7.0%, 01/01/12 ............... 2,737,227 2,751,037
Federal National Mortgage
Association:
6.0%, 04/01/11 .................... 8,775,093 8,475,406
7.5%, 04/01/26 .................... 9,075,224 9,178,128
7.0%, 05/01/26 .................... 1,636,854 1,617,932
7.0%, 08/01/26 .................... 297,323 294,324
7.0%, 09/01/27 .................... 662,109 654,449
7.0%, 01/01/28 .................... 3,563,665 3,527,711
6.5%, 03/01/28 .................... 2,648,871 2,562,073
6.5%, 09/01/28 .................... 1,900,617 1,838,337
6.5%, 10/01/28 .................... 2,908,162 2,812,867
8.0%, 11/01/28 .................... 4,014,590 4,123,707
8.0%, 12/01/28 .................... 6,600,098 6,773,053
6.0%, 03/01/29 .................... 18,820,597 17,698,494
7.5%, 04/01/29 .................... 7,678,258 7,765,321
7.5%, 05/01/29 .................... 9,000,000 9,102,051
6.5%, 06/01/29 .................... 4,600,000 4,449,267
7.0%, 06/01/29 .................... 6,800,000 6,728,036
8.0%, 06/01/29 .................... 4,300,430 4,412,061
Government National Mortgage
Association:
7.0%, 07/15/27 .................... 3,176,052 3,138,479
7.5%, 09/15/27 .................... 71 72
7.0%, 02/15/28 .................... 11,601,797 11,464,549
6.5%, 03/15/28 .................... 16,808,905 16,203,331
6.5%, 05/15/28 .................... 719,624 693,698
7.0%, 05/15/28 .................... 10,672,442 10,546,187
6.5%, 07/15/28 .................... 4,397,859 4,239,417
6.5%, 11/15/28 .................... 12,326,924 11,853,077
7.0%, 12/15/28 .................... 19,611,055 19,379,056
Prudential Securities Secured
Financing
Series 1999-NRF1, Class A2
6.48%, 01/15/09 ................... 6,000,000 5,793,780
------------
183,880,070
------------
UTILITY--ELECTRIC (0.3%)
Texas Utilities (Series C)
6.375%, 01/01/08 ................. 6,900,000 6,573,237
------------
U.S. GOVERNMENT (6.3%)
U.S. Treasury:
6.0% Note, 08/15/00 ............... 25,000,000 25,156,250
6.25% Note, 04/30/01 .............. 42,500,000 43,017,990
6.5% Note, 08/31/01 ............... 8,775,000 8,939,531
</TABLE>
58
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
7.25% Note, 05/15/04 ...................... $14,315,000 $ 15,187,328
6.875% Note, 05/15/06 ..................... 2,000,000 2,105,626
8.125% Bond, 08/15/19 ..................... 18,100,000 21,861,361
6.125% Bond, 11/15/27 ..................... 10,560,000 10,461,000
5.25% Bond, 11/15/28 ...................... 11,040,000 9,785,966
5.25% Bond, 02/15/29 ...................... 11,500,000 10,321,250
--------------
146,836,302
--------------
TOTAL CREDIT SENSITIVE (17.0%) 395,279,506
--------------
ENERGY
GAS (0.2%)
RAS Laffan Liquid Natural Gas
8.294%, 03/15/14+ ........................ 3,500,000 3,229,905
--------------
OIL--SUPPLIES & CONSTRUCTION (0.0%)
Diamond Offshore Drilling, Inc.
3.75% Conv., 02/15/07 .................... 290,000 288,550
Nabors Industries, Inc.
5.0% Conv., 05/15/06 ..................... 290,000 392,225
--------------
680,775
--------------
TOTAL ENERGY (0.2%) ....................... 3,910,680
--------------
TECHNOLOGY
ELECTRONICS (0.9%)
America Online, Inc.
4.0% Conv., 11/15/02 ..................... 555,000 4,699,809
Amkor Technologies, Inc.
5.75% Conv., 05/01/03 .................... 2,055,000 2,013,900
EMC Corp.
3.25% Conv., 03/15/02 .................... 625,000 3,035,937
HNC Software, Inc.
4.75% Conv., 03/01/03 .................... 980,000 957,950
Level One Communications, Inc.:
4.0% Conv., 09/01/04+ .................... 670,000 1,307,337
4.0% Conv., 09/01/04 ...................... 860,000 1,678,075
LSI Logic Corp.
4.25% Conv., 03/15/04+ ................... 1,960,000 3,177,650
Mindspring Enterprises, Inc.
5.0% Conv., 04/15/06 ..................... 870,000 821,063
Photronics, Inc.
6.0% Conv., 06/01/04 ..................... 1,535,000 1,675,069
Wind River Systems, Inc.
5.0% Conv., 08/01/02 ..................... 920,000 800,400
--------------
20,167,190
--------------
TELECOMMUNICATIONS (0.5%)
At Home Corp.
0.5246% Conv., 12/28/18+ ................. 1,325,000 1,051,719
CNET, Inc.
5.0%, 03/01/06 ........................... 575,000 966,000
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
Comverse Technology, Inc.:
5.75% Conv., 10/01/06 .................... $ 1,295,000 $ 3,219,694
5.75% Conv., 10/01/06+ .................... 715,000 1,777,669
Global TeleSystems Group, Inc.
5.75% Conv., 07/01/10 .................... 2,725,000 4,325,937
Nextel Communications, Inc.
4.75% Conv., 07/01/07+ ................... 775,000 941,625
NTL, Inc.
7.0% Conv., 12/15/08 ..................... 170,000 269,536
--------------
12,552,180
--------------
TOTAL TECHNOLOGY (1.4%) ................... 32,719,370
--------------
TOTAL LONG-TERM DEBT SECURITIES (20.3%)
(Amortized Cost $470,205,620) 472,502,532
--------------
SHORT-TERM DEBT SECURITIES:
BANKERS ACCEPTANCES (0.2%)
KeyCorp.
4.89%, due 07/16/99 ...................... 4,000,000 3,991,867
--------------
COMMERCIAL PAPER
BellSouth Corp.
5.09%, due 07/29/99 ...................... 50,000,000 49,802,834
Gillette Co.
5.65%, due 07/01/99 ...................... 44,000,000 44,000,000
Household Finance Corp.
5.17%, due 07/30/99 ...................... 18,000,000 17,925,325
Teachers Insurance and Annuity
Association
4.98%, due 07/15/99 ...................... 25,000,000 24,951,680
--------------
TOTAL COMMERCIAL PAPER (5.9%) 136,679,839
--------------
TIME DEPOSITS (2.2%)
Societe Generale
5.87%, due 07/01/99 ...................... 51,300,000 51,300,000
--------------
U.S. GOVERNMENT AGENCIES (1.7%)
Federal Home Loan Bank
4.6%, due 07/01/99 ....................... 40,500,000 40,500,000
--------------
TOTAL SHORT-TERM DEBT
SECURITIES (10.0%)
(Amortized Cost $232,471,706).............. 232,471,706
--------------
TOTAL INVESTMENTS (99.5%)
(Cost/Amortized Cost
$1,943,710,493)........................... 2,313,238,487
OTHER ASSETS
LESS LIABILITIES (0.5%) ................... 11,429,045
--------------
NET ASSETS (100.0%) ........................ $2,324,667,532
==============
</TABLE>
59
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
DISTRIBUTION OF INVESTMENTS BY GLOBAL
REGION
As a Percentage of Total Investments
<S> <C>
Canada ........................ 0.2%
France ........................ 1.8
Germany ....................... 0.5
Japan ......................... 3.1
Latin America ................. 0.6
Netherlands ................... 1.2
New Zealand & Australia ....... 0.8
Scandinavia ................... 1.0
Southeast Asia ................ 1.5
Spain ......................... 0.5
Switzerland ................... 0.5
United Kingdom ................ 3.8
United States** ............... 84.0
Other European Countries ...... 0.5
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Includes Short-Term Debt Securities of 10.0%.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1999, these securities amounted to $83,059,215 or
3.6% of net assets.
(a) Security in default.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
60
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 (Unaudited)
1. Organization and Significant Accounting Policies
The Hudson River Trust (the "Trust") (successor to The Hudson River Fund,
Inc., a Maryland corporation organized in 1984) was formed as a Massachusetts
business trust on July 10, 1987 and is registered under the Investment Company
Act of 1940 (the "1940 Act"), as amended, as an open-end management investment
company. The Trust issues shares of beneficial interest currently divided among
fourteen Portfolios (the "Portfolios"): Alliance Money Market, Alliance
Intermediate Government Securities, Alliance Quality Bond, Alliance High Yield,
Alliance Growth and Income, Alliance Equity Index, Alliance Common Stock,
Alliance Global, Alliance International, Alliance Aggressive Stock, Alliance
Small Cap Growth, Alliance Conservative Investors, Alliance Balanced and
Alliance Growth Investors. Effective October 2, 1996, the Trust made available
a second class of shares, Class IB, for each of the Trust's Portfolios. In
connection with the Class IB shares offering, the existing class of shares was
redesignated Class IA. The Class IB shares are subject to distribution fees
imposed under a distribution plan (the "Distribution Plan") adopted pursuant to
Rule 12b-1 under the 1940 Act. Under the Trust's multiple class distribution
system, both classes of shares have identical voting, dividend, liquidation,
and other rights, other than the payment of distribution fees under the
Distribution Plan.
Class IA shares are offered to separate accounts of The Equitable Life
Assurance Society of the United States ("Equitable"), a wholly-owned subsidiary
of The Equitable Companies Incorporated, and to separate accounts of other
insurance companies unaffiliated with Equitable. Class IB shares are offered to
separate accounts of Equitable.
The investment objectives of each Portfolio are as follows:
Alliance Money Market Portfolio -- High level of current income, preserve
its assets and maintain liquidity. The Portfolio pursues this objective by
investing in primarily high quality U.S. dollar denominated money market
instruments.
Alliance Intermediate Government Securities Portfolio -- High current
income consistent with relative stability of principal through investment
primarily in debt securities issued or guaranteed as to principal and interest
by the U.S. Government or any of its agencies or instrumentalities.
Alliance Quality Bond Portfolio -- High current income consistent with
preservation of capital by investing primarily in investment grade fixed income
securities. The Portfolio reserves the right to invest in convertible debt
securities, preferred stocks and dividend-paying common stocks.
Alliance High Yield Portfolio -- High return by maximizing current income
and, to the extent consistent with that objective, capital appreciation. The
Portfolio pursues this objective by investing primarily in a diversified mix of
high yield, fixed income securities involving greater volatility of price and
risk of principal and income than high quality fixed income securities. The
medium and lower quality debt securities in which the Portfolio may invest are
known as "junk bonds."
Alliance Growth and Income Portfolio -- High total return through a
combination of current income and capital appreciation by investing primarily
in income-producing common stocks and securities convertible into common
stocks.
Alliance Equity Index Portfolio -- Total return before expenses that
approximates the total return performance of the Standard & Poor's 500 Index,
including reinvestment of dividends, at a risk level consistent with that of
the Index.
Alliance Common Stock Portfolio -- Long-term growth of its capital and
increase income. The Portfolio pursues this objective by investing primarily in
common stock and other equity-type instruments.
Alliance Global Portfolio -- Long-term growth of capital. The Portfolio
pursues this objective by investing primarily in equity securities of
non-United States companies as well as United States issuers.
Alliance International Portfolio -- Long-term growth of capital by
investing primarily in a diversified portfolio of equity securities selected
principally to permit participation in non-United States companies with
prospects for growth.
61
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
Alliance Aggressive Stock Portfolio -- Long-term growth of capital. The
Portfolio pursues this objective by investing primarily in common stocks and
other equity-type securities issued by quality small and intermediate sized
companies with strong growth prospects.
Alliance Small Cap Growth Portfolio -- Long-term growth of capital. The
Portfolio pursues this objective by investing primarily in common stocks and
other equity-type securities issued by smaller-sized companies with strong
growth potential.
Alliance Conservative Investors Portfolio -- High total return without, in
the investment adviser's opinion, undue risk to principal. The Portfolio
pursues this objective by investing in a diversified mix of publicly traded
equity and debt securities.
Alliance Balanced Portfolio -- High return through both appreciation of
capital and current income. The Portfolio pursues this objective by investing
in a diversified portfolio of publicly traded equity and debt securities and
short-term money market instruments.
Alliance Growth Investors Portfolio -- Highest total return consistent
with the investment adviser's determination of reasonable risk. The Portfolio
pursues this objective by investing in a diversified mix of publicly traded
equity and fixed income securities, including at times common stocks issued by
intermediate and small-sized companies and at times fixed income securities
that are medium and lower quality debt securities known as "junk bonds."
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual results
could differ from those estimates.
The following is a summary of the significant accounting policies of the
Trust:
Stocks listed on national securities exchanges and certain
over-the-counter issues traded on the NASDAQ national market system are valued
at the last sale price or, if there is no sale, at the latest available bid
price. Other unlisted stocks are valued at their last sale price or, if no
reported sale during the day, at a bid price estimated by a broker.
Convertible preferred stocks listed on national securities exchanges are
valued as of their last sale price or, if there is no sale, at the latest
available bid price.
Convertible bonds and unlisted convertible preferred stocks are valued at
bid prices obtained from one or more of the major dealers in such securities.
Where there is a discrepancy between dealers, values may be adjusted based on
recent premium spreads to the underlying common stocks.
Mortgage backed and asset backed securities are valued at prices obtained
from a bond pricing service where available, or at a bid price obtained from
one or more of the major dealers in such securities. If a quoted price is
unavailable, an equivalent yield or yield spread quotes will be obtained from a
broker and converted to a price.
Purchased options, including options on futures, are valued at their last
bid price. Written options are valued at their last asked price.
Over-the-counter written options are valued using prices provided by brokers.
Long-term corporate bonds may be valued on the basis of prices provided by
a pricing service when such prices are believed to reflect the fair market
value of such securities. The prices provided by a pricing service take into
account many factors, including institutional size, trading in similar groups
of securities and any developments related to specific securities; however,
when such prices are not available, such bonds are valued at a bid price
estimated by a broker.
U.S. Treasury securities and other obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities are valued at representative
quoted prices.
62
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
Foreign securities not traded directly, or in American Depository Receipt
(ADR) or similar form in the United States, are valued at representative quoted
prices in the currency of the country of origin.
Except for the Alliance Money Market Portfolio, short-term debt securities
which mature in 60 days or less are valued at amortized cost, which
approximates market value. Short-term debt securities which mature in more than
60 days are valued at representative quoted prices. Short-term debt securities
held in the Alliance Money Market Portfolio are valued at representative quoted
prices regardless of the length of maturity.
Futures and forward contracts are valued at their last sale price or, if
there is no sale, at the latest available bid price.
Other securities, including restricted securities, and assets for which
market quotations are not readily available or for which valuation cannot be
provided, are valued at "fair value" as determined in good faith by the
Valuation Committee of the Board of Trustees.
Securities transactions are recorded on the trade date net of brokerage
fees, commissions, and transfer fees.
Interest income (including amortization of premium and accretion of
discount on securities using the effective yield method) is accrued daily.
Dividend income is recorded on the ex-dividend date.
Realized gains and losses on the sale of investments are computed on the
basis of the identified cost of the related investments sold.
All income earned and expenses incurred by the Portfolios are borne on a
pro-rata basis by each outstanding class of shares, based on the proportionate
interest in each Portfolio represented by the net assets of such class.
Expenses of the Trust are charged to each Portfolio in proportion to net
assets.
Under a deferred compensation plan, the Trust owes several Trustees the
payment of all or part of the fees payable for their services. Such amounts are
reflected in the Statements of Assets and Liabilities.
The Board of Trustees has approved the lending of portfolio securities
through its custodian bank, Chase Manhattan Bank ("Chase"), acting as lending
agent, to certain broker-dealers in exchange for negotiated lenders' fees. Any
such loan of portfolio securities will be continuously secured by collateral at
least equal to the value of the securities loaned. All loans will be
collateralized in the form of cash or U.S. Government securities. Chase invests
the cash collateral in short-term investments and retains a portion of the
interest earned. Chase will indemnify the Portfolios from any loss resulting
from a borrower's failure to return a loaned security when due. The following
table shows the value of securities loaned and collateral received at June 30,
1999, and the security loan fees received, net of rebates paid, for the six
months ended June 30, 1999. Such net fees are included in interest income in
the accompanying Statements of Operations.
<TABLE>
<CAPTION>
VALUE OF VALUE OF SECURITY LOAN
PORTFOLIO SECURITIES LOANED COLLATERAL RECEIVED* FEES RECEIVED
- ----------------------------------------------------- ------------------- ---------------------- --------------
<S> <C> <C> <C>
Alliance Intermediate Government Securities ......... $ 47,191,956 $ 48,469,073 $ 81,591
Alliance Quality Bond ............................... 71,399,023 73,599,264 109,500
Alliance Growth and Income .......................... 36,261,245 37,512,306 69,702
Alliance Equity Index ............................... 24,027,726 24,126,740 109,631
Alliance Common Stock ............................... 584,479,563 587,676,922 657,885
Alliance Global ..................................... 94,642,958 97,668,284 320,385
Alliance International .............................. 14,728,416 15,492,734 83,440
Alliance Aggressive Stock ........................... 290,483,094 296,817,450 1,218,628
Alliance Conservative Investors ..................... 69,920,720 72,270,783 98,270
Alliance Balanced ................................... 304,067,472 315,550,794 428,432
Alliance Growth Investors ........................... 184,810,704 190,964,160 448,331
</TABLE>
- ----------
* Including U.S. Government securities valued at $24,902,253, $53,772,754,
$40,486,861, $215,558,926 and $54,895,182 for the Alliance Intermediate
Government Securities, Alliance Quality Bond, Alliance Conservative
Investors, Alliance Balanced and Alliance Growth Investors Portfolios,
respectively.
63
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
The books and records of the Trust are kept in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars at the bid price last quoted
by a composite list of major U.S. banks at the following dates:
(i) market value of investment securities, other assets and
liabilities--at the valuation date.
(ii) purchase and sales of investment securities, income and expenses--at
the date of such transactions.
The Portfolios do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
Net currency gains or losses realized and unrealized as a result of
differences between interest, dividends and foreign withholding taxes recorded
on the Portfolio's books and the U.S. dollar equivalent amount actually
received or paid are presented under foreign currency transactions in the
realized and unrealized gains and losses section of the Statements of
Operations.
The Trust intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its net investment income and net realized capital gains
to shareholders of each Portfolio. Therefore, no Federal income tax provision
is required. Dividends from net investment income are declared and distributed
quarterly; distributions from net realized short-term and long-term capital
gains are declared and distributed at least annually to the shareholders of the
Portfolios to which such gains are attributable. All dividends and
distributions are reinvested in additional full and fractional shares of the
related Portfolios. All dividends and distributions are distributed on a tax
basis and as such, the amounts may differ from financial statement investment
income and realized capital gains.
Options Written:
All Portfolios (except for the Alliance Money Market and Alliance Equity
Index Portfolios) may write (sell) covered options as a hedge to provide
protection against adverse movements in the price of securities in the
portfolio or to enhance investment performance. When a Portfolio writes an
option, an amount equal to the premium received by the Portfolio is recorded as
a liability and is subsequently adjusted on a daily basis to the current market
price of the option written. Premiums received from writing options which
expire unexercised are realized as gains on the expiration date. In writing
options, a Portfolio must assume that the option may be exercised at any time
prior to the expiration of its obligation as a writer, and that in such
circumstances the net proceeds of the sale or cost of purchase of the
underlying securities pursuant to the call or put option may be substantially
below or above the prevailing market price. A Portfolio also has the additional
risk of not being able to enter into a closing purchase transaction if a liquid
secondary market does not exist and bears the risk of unfavorable changes in
the price of the financial instruments underlying the options.
Futures and Forward Contracts:
Futures and forward contracts are agreements to buy or sell a security for
a set price in the future. A Portfolio may buy or sell futures and forward
contracts for the purpose of protecting its portfolio securities against future
changes in interest rates which might adversely affect the value of the
Portfolio's securities or the price of securities that it intends to purchase
at a later date. Initial margin deposits are made upon entering into futures
contracts and can be either in cash or U.S. Treasury securities. During the
period the futures and forward contracts are open, changes in the market price
of the contract are recognized as unrealized gains or losses by
"marking-to-market" at the end of each trading day. Variation margin payments
on futures contracts are received or made, depending upon whether unrealized
gains or losses are incurred. When the contract is closed, the Portfolio
records a realized gain or loss equal to the difference between the proceeds
from (or cost of) the closing transactions and the Portfolio's basis in the
contract. Should interest rates move unexpectedly, the Portfolio may not
achieve the anticipated benefits of the futures and forward contracts and may
incur a loss. The use of futures and forward contracts transactions involves
the risk of imperfect correlation in movements in the price of futures and
forward contracts, interest rates and the underlying hedged assets.
64
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
Limitations on Market and Credit Risk:
Written options, futures and forward contracts involve elements of both
market and credit risk in excess of the amounts reflected in the Statements of
Assets and Liabilities. The risk involved in writing an option on a security is
that, if the option is exercised, the underlying security is then purchased or
sold by the Portfolio at the contract price, which could be disadvantageous
relative to the market price. The contract amounts of these futures and forward
contracts reflect the extent of the Portfolio's exposure to off-balance sheet
risk. The Portfolio bears the market risk which arises from any changes in
security values. The credit risk for futures contracts is limited to failure to
trade or exercise the futures contracts purchased through the exchange or board
of trade which acts as the counterparty to the Portfolio's futures
transactions. Forward contracts are entered into directly with the counterparty
and not through an exchange and can be terminated only by agreement of both
parties to the contract. There is no daily margin settlement and the Portfolio
is exposed to the risk of default by the counterparty.
Statement of Position 93-2:
For the year ended December 31, 1998, in conformity with Statement of
Position 93-2 Determination, Disclosure and Financial Statement Presentation of
Income, Capital Gain, and Return of Capital Distributions by Investment
Companies, the reclassification arising from current book/tax differences
resulted in increases (decreases) to the components of net assets as follows:
<TABLE>
<CAPTION>
ALLIANCE
INTERMEDIATE ALLIANCE
GOVERNMENT QUALITY ALLIANCE
SECURITIES BOND HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------- -------------
<S> <C> <C> <C>
Undistributed (overdistributed) net
investment income .......................... $ 1,558 $ 101,980 $ 197,552
Accumulated net realized gain (loss) ........ (1,558) (101,980) (197,552)
<CAPTION>
ALLIANCE
EQUITY ALLIANCE ALLIANCE
INDEX COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------------- ---------------
<S> <C> <C> <C>
Undistributed (overdistributed) net
investment income .......................... $ 3,951 $ (15,541,411) $ 1,533,285
Accumulated net realized gain (loss) ........ (3,951) 15,541,411 (1,533,285)
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE AGGRESSIVE
INTERNATIONAL STOCK
PORTFOLIO PORTFOLIO
--------------- ---------------
<S> <C> <C>
Paid-in capital .......................... $ (2,256,875) $ --
Undistributed (overdistributed) net
investment income ....................... 2,913,186 9,723,281
Accumulated net realized gain (loss) ..... (656,311) (9,723,281)
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE
SMALL CAP CONSERVATIVE ALLIANCE GROWTH
GROWTH INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- --------------- -------------
<S> <C> <C> <C> <C>
Paid-in capital .......................... $ (168,661) $ -- $ -- $ 64,483
Undistributed (overdistributed) net
investment income ....................... 27,043 (173,812) (1,175,974) (105,678)
Accumulated net realized gain (loss) ..... 141,618 173,812 1,175,974 41,195
</TABLE>
Net capital and net currency losses incurred after October 31 and within
the taxable year are deemed to arise on the first day of the Portfolio's next
taxable year. For the period from November 1, 1998 to December 31, 1998 certain
Portfolios incurred and elected to defer until January 1, 1999 for U.S. Federal
income tax purposes net capital and net currency losses of approximately:
<TABLE>
<CAPTION>
CAPITAL CURRENCY
PORTFOLIO LOSSES LOSSES
- ----------------------------------- ------------- ----------
<S> <C> <C>
Alliance Quality Bond ............. $ 1,114,087 $ --
Alliance High Yield ............... 35,405,973 --
Alliance Common Stock ............. 4,742,342 26,979
Alliance Global ................... -- 435,898
Alliance Small Cap Growth ......... 2,835,065 --
Alliance Balanced ................. -- 106,329
Alliance Growth Investors ......... -- 101,198
</TABLE>
65
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
2. Management of the Trust
Alliance Capital Management L.P. ("Alliance"), a publicly traded limited
partnership, indirectly majority-owned by Equitable, is the investment adviser.
Under the terms of an Investment Advisory Agreement, Alliance receives fees
from each Portfolio at the following rates:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS
----------------------------------------------------------------------
FIRST NEXT NEXT NEXT
PORTFOLIO $750 MILLION $750 MILLION $1 BILLION $2.5 BILLION THEREAFTER
- ------------------------------------------------- -------------- -------------- ------------ -------------- -----------
<S> <C> <C> <C> <C> <C>
Alliance Money Market ........................... .350% .325% .300% .280% .270 %
Alliance Intermediate Government Securities ..... .500% .475% .450% .430% .420 %
Alliance Quality Bond ........................... .525% .500% .475% .455% .445 %
Alliance High Yield ............................. .600% .575% .550% .530% .520 %
Alliance Growth and Income ...................... .550% .525% .500% .480% .470 %
Alliance Equity Index ........................... .325% .300% .275% .255% .245 %
Alliance Common Stock ........................... .475% .425% .375% .355% .345 %*
Alliance Global ................................. .675% .600% .550% .530% .520 %
Alliance International .......................... .900% .825% .800% .780% .770 %
Alliance Aggressive Stock ....................... .625% .575% .525% .500% .475 %
Alliance Small Cap Growth ....................... .900% .850% .825% .800% .775 %
Alliance Conservative Investors ................. .475% .425% .375% .350% .325 %
Alliance Balanced ............................... .450% .400% .350% .325% .300 %
Alliance Growth Investors ....................... .550% .500% .450% .425% .400 %
</TABLE>
- ----------
* On assets in excess of $10 billion, the management fee for the Alliance
Common Stock Portfolio is reduced to 0.335% of average daily net assets.
3. Distribution Plan
Each Portfolio's Distribution Plan permits the Portfolio to pay a
distribution fee of up to 0.50% of the average daily net assets attributable to
its Class IB shares. The Trust, on behalf of each Portfolio, has entered into
distribution agreements ("the Class IB Distribution Agreements") pursuant to
the Distribution Plans with each of Equitable Distributors, Inc. ("EDI") and EQ
Financial Consultants, Inc. ("EQ Financial") (each a "Class IB Distributor").
Both EDI and EQ Financial are indirect, wholly-owned subsidiaries of the
Equitable. The Class IB Distribution Agreements provide that each Class IB
Distributor receives payments from each Portfolio (except the Alliance Small
Cap Growth Portfolio) at a rate equal to 0.25% of the average daily net assets
of such Portfolio attributable to Class IB shares for which such Class IB
Distributor provides services and/or assumes expenses under the Distribution
Plan. With respect to the Alliance Small Cap Growth Portfolio, this amount
shall not exceed the lesser of (a) 0.25% of the average daily net assets of the
Portfolio attributable to Class IB shares for which each Class IB Distributor
provides services and/or assumes expenses under the Distribution Plan and (b)
an amount that, when added to certain other expenses of the Class IB shares,
would result in a ratio of expenses to average daily net assets attributable to
Class IB shares for which such Class IB Distributor provides services and/or
assumes expenses under the Distribution Plan equaling 1.20%.
The Distribution Plans provide that EDI and EQ Financial will use the
payments received under the Class IB Distribution Agreements for services
rendered (and expenses borne) in connection with activities primarily intended
to result in the sale of the Trust's Class IB shares. Since the Class IB
Distributor's compensation is not directly tied to their expenses, the amount
of compensation received under the Class IB Distribution Agreements during any
year may be more or less than actual expenses. For this reason, the
Distribution Plans are characterized by the staff of the Securities and
Exchange Commission as being of the "compensation" variety.
66
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
4. Investment Transactions
Investment security transactions, excluding short-term debt securities,
for the six months ended June 30, 1999 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------------------------------- ----------------------------------
STOCKS AND U.S. GOVERNMENT STOCKS AND U.S. GOVERNMENT
PORTFOLIO DEBT SECURITIES AND AGENCIES DEBT SECURITIES AND AGENCIES
- ----------------------------------------------------- ----------------- ----------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Alliance Intermediate Government Securities ......... $ 40,425,593 $412,076,608 $ 7,184,196 $443,836,696
Alliance Quality Bond ............................... 122,051,665 228,113,690 73,552,102 243,588,898
Alliance High Yield ................................. 494,365,448 -- 482,677,799 --
Alliance Growth and Income .......................... 536,543,469 -- 383,727,610 --
Alliance Equity Index ............................... 458,768,017 -- 40,934,459 --
Alliance Common Stock ............................... 5,128,191,902 -- 4,505,434,725 --
Alliance Global ..................................... 442,590,159 -- 401,617,919 --
Alliance International .............................. 163,523,539 -- 160,100,683 --
Alliance Aggressive Stock ........................... 1,502,025,768 -- 1,939,647,461 --
Alliance Small Cap Growth ........................... 302,245,329 -- 309,592,707 --
Alliance Conservative Investors ..................... 119,383,626 112,664,154 117,678,929 98,276,429
Alliance Balanced ................................... 728,143,491 426,325,182 774,852,307 460,959,737
Alliance Growth Investors ........................... 929,068,336 222,461,738 882,322,247 216,764,728
</TABLE>
No activity is shown for the Alliance Money Market Portfolio since it
trades exclusively in short-term debt securities.
Transactions in options written for the six months ended June 30, 1999 are
summarized as follows:
<TABLE>
<CAPTION>
ALLIANCE
COMMON STOCK
PORTFOLIO
-----------------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------------- -----------------
<S> <C> <C>
Options outstanding--January 1, 1999 ........................ 492,960 $ 195,807,516
Options written ............................................. 1,241,095 460,512,513
Options terminated in closing purchase transactions ......... (201,380) (65,700,130)
Options expired ............................................. (10,000) (3,449,500)
Options exercised ........................................... (1,125,175) (439,414,074)
---------- --------------
Options outstanding--June 30, 1999 .......................... 397,500 $ 147,756,325
========== ==============
</TABLE>
The Portfolios (except for the Alliance Money Market, Alliance
Intermediate Government Securities and Alliance Equity Index Portfolios) may
enter into forward currency contracts in order to hedge their exposure to
changes in foreign currency exchange rates on their foreign securities
holdings. A forward contract is a commitment to purchase or sell a foreign
currency at a future date at a negotiated forward rate. The gain or loss
arising from the difference between the original contracts and the closing of
such contracts is included in realized gains or losses from foreign currency
transactions. At June 30, 1999, the Alliance Common Stock, Alliance Global,
Alliance International, Alliance Conservative Investors, Alliance Balanced and
Alliance Growth Investors Portfolios had outstanding forward currency contracts
to buy/sell foreign currencies as follows:
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE COMMON STOCK PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ------------------------------------------- ---------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, settling 07/01/99 ......... 802 $1,276,036 $1,264,462 $ (11,574)
=========
</TABLE>
67
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE GLOBAL PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ------------------------------------------------------- ---------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, settling 07/03/99 -- 07/07/99 ......... 2,686 $ 4,253,796 $ 4,237,453 $ (16,343)
Euro, settling 07/02/99 -- 07/30/99 ................... 9,315 9,657,331 9,627,421 (29,910)
Hong Kong Dollar, settling 07/02/99 ................... 2,496 321,703 321,699 (4)
Japanese Yen, settling 07/01/99 ....................... 322,586 2,664,857 2,668,869 4,012
Swiss Franc, settling 07/01/99 ........................ 3,556 2,298,494 2,291,680 (6,814)
FOREIGN CURRENCY SALE CONTRACTS
British Pounds, settling 07/06/99 ..................... 59 93,553 93,815 (262)
Euro, settling 07/01/99 -- 07/07/99 ................... 10,623 10,971,096 10,970,140 956
-----------
$ (48,365)
===========
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE INTERNATIONAL PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ----------------------------------------------------- ---------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Hong Kong Dollar, settling 07/02/99 ................. 899 $ 115,816 $ 115,812 $ (4)
Japanese Yen, settling 07/01/99 -- 07/02/99 ......... 116,782 966,036 966,180 144
Swiss Franc, settling 07/01/99 ...................... 1,022 659,780 658,632 (1,148)
FOREIGN CURRENCY SALE CONTRACTS
British Pounds, settling 07/06/99 ................... 755 1,189,023 1,191,524 (2,501)
Euro, settling 07/01/99 -- 07/02/99 ................. 2,088 2,157,448 2,155,615 1,833
---------
$(1,676)
=========
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- --------------------------------------------- ---------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Euro, settling 07/01/99 ..................... 134 $138,712 $138,301 $ (411)
Swiss Franc, settling 07/01/99 .............. 254 163,722 163,437 (285)
FOREIGN CURRENCY SALE CONTRACTS
British Pounds, settling 07/02/99 ........... 152 241,682 240,196 1,486
Euro, settling 07/02/99 -- 07/30/99 ......... 252 260,314 260,751 (437)
Japanese Yen, settling 07/06/99 ............. 2,470 20,090 20,452 (362)
------
$ (9)
======
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE BALANCED PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ----------------------------------------------- ---------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Australian Dollars, settling 07/02/99 ......... 254 $ 168,590 $ 167,498 $ (1,092)
British Pounds, settling 07/06/99 ............. 942 1,486,817 1,486,733 (84)
Japanese Yen, settling 07/02/99 ............... 52,847 437,512 437,222 (290)
FOREIGN CURRENCY SALE CONTRACTS
Euro, settling 07/02/99 ....................... 2,233 2,300,901 2,305,591 (4,690)
Japanese Yen, settling 07/02/99 ............... 45,019 371,385 372,460 (1,075)
Swiss Franc, settling 07/02/99 ................ 3,814 2,461,977 2,457,693 4,284
--------
$ (2,947)
========
</TABLE>
68
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE GROWTH INVESTORS PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ----------------------------------------------------- ---------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, settling 07/06/99 ................... 320 $ 504,499 $ 504,471 $ (28)
Euro, settling 07/01/99 ............................. 1,396 1,445,612 1,441,349 (4,263)
Swiss Franc, settling 07/01/99 ...................... 3,522 2,273,865 2,269,908 (3,957)
FOREIGN CURRENCY SALE CONTRACTS
British Pounds, settling 07/01/99 ................... 345 547,187 543,830 3,357
Euro, settling 07/02/99 ............................. 3,127 3,230,999 3,229,159 1,840
Greek Drachma, settling 07/02/99 .................... 139,723 443,114 444,255 (1,141)
Japanese Yen, settling 07/02/99 -- 07/06/99 ......... 254,115 2,097,774 2,102,724 (4,950)
Singapore Dollars, settling 07/06/99 ................ 122 70,474 71,681 (1,207)
---------
$ (10,349)
=========
</TABLE>
As of June 30, 1999, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
GROSS UNREALIZED NET UNREALIZED
COST OF --------------------------------- APPRECIATION
PORTFOLIO INVESTMENTS APPRECIATION DEPRECIATION (DEPRECIATION)
- ----------------------------------------------------- ----------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Alliance Money Market ............................... $ 1,146,367,340 $ 117,766 $ (450,332) $ (332,566)
Alliance Intermediate Government Securities ......... 230,389,656 562,965 (3,508,732) (2,945,767)
Alliance Quality Bond ............................... 353,420,955 211,254 (11,908,284) (11,697,030)
Alliance High Yield ................................. 644,839,529 7,164,957 (77,130,497) (69,965,540)
Alliance Growth and Income .......................... 1,071,291,751 273,799,318 (48,060,969) 225,738,349
Alliance Equity Index ............................... 1,611,619,102 745,387,678 (18,829,738) 726,557,940
Alliance Common Stock ............................... 10,956,530,821 4,980,509,261 (604,498,424) 4,376,010,837
Alliance Global ..................................... 1,174,050,920 464,123,852 (51,083,457) 413,040,395
Alliance International .............................. 230,330,560 31,960,880 (14,786,391) 17,174,489
Alliance Aggressive Stock ........................... 3,917,047,003 927,245,788 (286,733,851) 640,511,937
Alliance Small Cap Growth ........................... 287,618,901 41,282,247 (18,096,066) 23,186,181
Alliance Conservative Investors ..................... 401,608,147 38,534,097 (10,019,820) 28,514,277
Alliance Balanced ................................... 1,761,221,272 310,133,712 (62,492,991) 247,640,721
Alliance Growth Investors ........................... 1,946,428,632 433,793,626 (66,983,771) 366,809,855
</TABLE>
During the year ended December 31, 1998, the Alliance Intermediate
Government Securities Portfolio utilized available capital loss carryforwards
of $3,248,623.
The Alliance Intermediate Government Securities Portfolio and Alliance
Small Cap Growth Portfolio had net capital loss carryforwards of $5,583,325 (of
which $5,101,186 expires in the year 2002 and $482,139 expires in the year
2004) and $16,465,876 (all of which expires in the year 2006), respectively. To
the extent the above losses are used to offset future capital gains, it is
probable that the gains so offset will not be distributed to shareholders.
5. Capital Share Transactions
At June 30, 1999, there was an unlimited number of shares of beneficial
interest (Shares), without par value, available for issuance by the Board of
Trustees. Shares are divided into two classes, designated Class IA and Class IB
for each Portfolio.
69
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
Transactions in Shares were as follows:
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE INTERMEDIATE
MONEY MARKET GOVERNMENT SECURITIES
PORTFOLIO PORTFOLIO
--------------------------------- ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- ----------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
Shares sold ............. 81,199,559 136,020,103 3,394,360 7,332,095
Shares issued in
reinvestment of
dividends and
distributions .......... -- 2,682,886 -- 724,448
---------- ----------- --------- ---------
Total shares issued ..... 81,199,559 138,702,989 3,394,360 8,056,543
Shares redeemed ......... (76,872,869) (112,151,509) (2,140,700) (4,388,356)
----------- ------------ ---------- ----------
Net increase
(decrease) ............. 4,326,690 26,551,480 1,253,660 3,668,187
=========== ============ ========== ==========
<CAPTION>
ALLIANCE ALLIANCE
QUALITY BOND HIGH YIELD
PORTFOLIO PORTFOLIO
------------------------------ --------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- -------------- --------------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
Shares sold ............. 4,758,113 12,172,248 5,242,478 18,951,617
Shares issued in
reinvestment of
dividends and
distributions .......... -- 2,093,682 -- 5,403,877
--------- ---------- --------- ----------
Total shares issued ..... 4,758,113 14,265,930 5,242,478 24,355,494
Shares redeemed ......... (2,071,610) (2,355,892) (7,440,728) (11,963,174)
---------- ---------- ---------- -----------
Net increase
(decrease) ............. 2,686,503 11,910,038 (2,198,250) 12,392,320
========== ========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
GROWTH AND INCOME EQUITY INDEX
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
Shares sold ............... 7,205,939 15,163,368 33,387,921 26,611,092
Shares issued in
reinvestment of
dividends and
distributions ............ -- 4,401,644 -- 694,933
--------- ---------- ---------- ----------
Total shares issued . ..... 7,205,939 19,565,012 33,387,921 27,306,025
Shares redeemed ........... (1,053,837) (3,992,469) (17,283,278) (7,487,195)
---------- ---------- ----------- ----------
Net increase .............. 6,152,102 15,572,543 16,104,643 19,818,830
========== ========== =========== ==========
<CAPTION>
ALLIANCE ALLIANCE
COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO
-------------------------------- --------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- ---------------- --------------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
Shares sold ............... 17,594,431 43,379,931 10,928,681 8,066,603
Shares issued in
reinvestment of
dividends and
distributions ............ -- 63,907,193 -- 5,362,782
---------- ---------- ---------- ---------
Total shares issued . ..... 17,594,431 107,287,124 10,928,681 13,429,385
Shares redeemed ........... (15,200,873) (43,764,983) (9,756,893) (13,140,812)
----------- ----------- ---------- -----------
Net increase .............. 2,393,558 63,522,141 1,171,788 288,573
=========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
INTERNATIONAL AGGRESSIVE STOCK
PORTFOLIO PORTFOLIO
-------------------------------- --------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- ---------------- --------------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
Shares sold ............... 28,829,068 40,984,802 11,981,534 33,480,797
Shares issued in
reinvestment of
dividends and
distributions ............ -- 362,445 -- 7,661,455
---------- ---------- ---------- ----------
Total shares issued . ..... 28,829,068 41,347,247 11,981,534 41,142,252
Shares redeemed ........... (26,332,713) (41,520,686) (25,421,486) (40,575,903)
----------- ----------- ----------- -----------
Net increase
(decrease) ............... 2,496,355 (173,439) (13,439,952) 566,349
=========== =========== =========== ===========
<CAPTION>
ALLIANCE ALLIANCE
SMALL CAP GROWTH CONSERVATIVE INVESTORS
PORTFOLIO PORTFOLIO
-------------------------------- -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- ---------------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
Shares sold ............... 24,607,219 52,458,409 2,024,321 3,583,057
Shares issued in
reinvestment of
dividends and
distributions ............ -- 1,203 -- 2,581,375
---------- ---------- --------- ---------
Total shares issued . ..... 24,607,219 52,459,612 2,024,321 6,164,432
Shares redeemed ........... (25,802,167) (43,349,403) (1,515,528) (3,201,439)
----------- ----------- ---------- ----------
Net increase
(decrease) ............... (1,194,948) 9,110,209 508,793 2,962,993
=========== =========== ========== ==========
</TABLE>
70
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
BALANCED GROWTH INVESTORS
PORTFOLIO PORTFOLIO
------------------------------ -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- -------------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
Shares sold .................................. 2,138,360 4,836,054 3,801,520 6,034,474
Shares issued in reinvestment of dividends and
distributions ............................... -- 11,476,087 -- 9,929,342
--------- ---------- --------- ---------
Total shares issued .......................... 2,138,360 16,312,141 3,801,520 15,963,816
Shares redeemed .............................. (4,732,536) (9,732,301) (2,987,875) (5,077,946)
---------- ---------- ---------- ----------
Net increase (decrease) ...................... (2,594,176) 6,579,840 813,645 10,885,870
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE INTERMEDIATE
MONEY MARKET GOVERNMENT SECURITIES
PORTFOLIO PORTFOLIO
-------------------------------- ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- ---------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
Shares sold ............... 18,007,384 40,257,599 1,460,918 2,732,736
Shares issued in
reinvestment of
dividends and
distributions ............ -- 1,123,590 -- 87,259
---------- ---------- --------- ---------
Total shares issued ....... 18,007,384 41,381,189 1,460,918 2,819,995
Shares redeemed ........... (20,737,304) (15,656,425) (325,432) (156,546)
----------- ----------- --------- ---------
Net increase
(decrease) ............... (2,729,920) 25,724,764 1,135,486 2,663,449
=========== =========== ========= =========
<CAPTION>
ALLIANCE ALLIANCE
QUALITY BOND HIGH YIELD
PORTFOLIO PORTFOLIO
--------------------------------- -----------------------------
SIX MONTHS JULY 8, 1998* SIX MONTHS YEAR ENDED
ENDED TO DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- ----------------- --------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
Shares sold ............... 27,922 1,010 3,354,910 15,829,829
Shares issued in
reinvestment of
dividends and
distributions ............ -- 47 -- 2,231,229
------ ----- --------- ----------
Total shares issued ....... 27,922 1,057 3,354,910 18,061,058
Shares redeemed ........... (11,604) -- (1,106,717) (612,661)
------- ----- ---------- ----------
Net increase
(decrease) ............... 16,318 1,057 2,248,193 17,448,397
======= ===== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
GROWTH AND INCOME EQUITY INDEX
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
Shares sold ............... 2,569,660 4,613,042 265,421 13,073
Shares issued in
reinvestment of
dividends and
distributions ............ -- 579,115 -- 108
--------- --------- ------- ------
Total shares issued . ..... 2,569,660 5,192,157 265,421 13,181
Shares redeemed ........... (47,607) (208,611) (51,823) (1,032)
--------- --------- ------- ------
Net increase .............. 2,522,053 4,983,546 213,598 12,149
========= ========= ======= ======
<CAPTION>
ALLIANCE ALLIANCE
COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO
------------------------------ -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- -------------- --------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
Shares sold ............... 10,797,596 19,886,395 788,468 1,194,769
Shares issued in
reinvestment of
dividends and
distributions ............ -- 4,121,858 -- 176,642
---------- ---------- ------- ---------
Total shares issued . ..... 10,797,596 24,008,253 788,468 1,371,411
Shares redeemed ........... (337,265) (278,288) (115,632) (145,815)
---------- ---------- -------- ---------
Net increase .............. 10,460,331 23,729,965 672,836 1,225,596
========== ========== ======== =========
</TABLE>
- ----------
* Commencement of operations.
71
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1999
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
INTERNATIONAL AGGRESSIVE STOCK
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
Shares sold ............. 480,544 592,943 1,057,491 2,372,000
Shares issued in
reinvestment of
dividends and
distributions .......... -- 9,904 -- 244,653
------- ------- --------- ---------
Total shares issued ..... 480,544 602,847 1,057,491 2,616,653
Shares redeemed ......... (360,691) (244,562) (458,503) (129,735)
-------- -------- --------- ---------
Net increase ............ 119,853 358,285 598,988 2,486,918
======== ======== ========= =========
<CAPTION>
ALLIANCE ALLIANCE
SMALL CAP GROWTH CONSERVATIVE INVESTORS
PORTFOLIO PORTFOLIO
------------------------------ -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- -------------- --------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
Shares sold ............. 1,330,074 6,064,836 1,878,273 2,038,248
Shares issued in
reinvestment of
dividends and
distributions .......... -- -- -- 185,980
--------- --------- --------- ---------
Total shares issued ..... 1,330,074 6,064,836 1,878,273 2,224,228
Shares redeemed ......... (1,161,403) (295,805) (46,097) (49,850)
---------- --------- --------- ---------
Net increase ............ 168,671 5,769,031 1,832,176 2,174,378
========== ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
BALANCED GROWTH INVESTORS
PORTFOLIO PORTFOLIO
--------------------------------- -----------------------------
SIX MONTHS JULY 8, 1998* SIX MONTHS YEAR ENDED
ENDED TO DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- ----------------- --------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
Shares sold .................................. 392,734 513 1,606,610 2,539,628
Shares issued in reinvestment of dividends and
distributions ............................... -- 54 -- 424,011
------- --- --------- ---------
Total shares issued .......................... 392,734 567 1,606,610 2,963,639
Shares redeemed .............................. (23,325) -- (87,897) (253,305)
------- --- --------- ---------
Net increase ................................. 369,409 567 1,518,713 2,710,334
======= === ========= =========
</TABLE>
- ----------
* Commencement of operations.
6. Bank Borrowing
A number of open-end mutual funds managed by the Adviser, including the
Trust, participate in a $750 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions, in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expenses in the Statements of Operations. The Trust did not
utilize the Facility during the six months ended June 30, 1999.
72
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Concluded)
June 30, 1999
7. Transactions with Affiliated Companies
An affiliated company is a company in which a Portfolio has ownership of
at least 5% of the voting securities. Investments in companies which were
affiliates during the six months ended June 30, 1999 are summarized as follows:
<TABLE>
<CAPTION>
MARKET VALUE
DECEMBER 31, PURCHASES
1998 AT COST
---------------- --------------
<S> <C> <C>
ALLIANCE COMMON STOCK PORTFOLIO:
Ceridian Corp. ............................. $ 266,334,688 $ 3,300,500
Chris Craft Industries, Inc. (Class B) ..... 60,857,849 --
Ingram Micro, Inc. (Class A) ............... 83,700,000 68,642,495
Loral Space & Communications ............... 180,280,312 177,097,718
SCI Systems, Inc. .......................... 206,514,000 146,556,164
-------------
$ 797,686,849
=============
<CAPTION>
MARKET VALUE REALIZED
SALES JUNE 30, DIVIDEND GAIN
AT COST 1999 INCOME (LOSS)
-------------- ---------------- ---------- ------------------
<S> <C> <C> <C> <C>
ALLIANCE COMMON STOCK PORTFOLIO:
Ceridian Corp. ............................. $ -- $ 252,674,375 $ -- $ --
Chris Craft Industries, Inc. (Class B) ..... 689,320 57,954,292 -- 2,237,187
Ingram Micro, Inc. (Class A) ............... 81,278,310 88,889,000 -- (42,075,492)
Loral Space & Communications ............... 49,692,615 315,678,600 -- (14,263,226)
SCI Systems, Inc. .......................... 36,089,744 298,656,250 -- 1,704,024
-------------- ------- --------------
$1,013,852,517 $ -- $ (52,397,507)
============== ======= ==============
</TABLE>
<TABLE>
<CAPTION>
MARKET VALUE
DECEMBER 31, PURCHASES SALES
1998 AT COST AT COST
---------------- -------------- --------------
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
<S> <C> <C> <C>
Circuit City Stores, Inc.--
CarMax Group ................................ $ 34,580,869 $ -- $ 23,620,002
Continental Airlines, Inc. (Class B) ......... 148,468,650 17,459,950 7,898,247
Florida Panthers Holdings, Inc.(a) ........... 23,292,425 949,326 52,742,207
Millicom International Cellular SA ........... 85,782,037 9,835,349 3,436,356
Mohawk Industries, Inc ....................... 158,441,025 24,841,404 1,665,382
Premier Parks, Inc. .......................... 162,327,550 12,158,011 5,013,900
Teekay Shipping Corp. ........................ 49,463,706 3,085,628 --
Tiffany & Co.(a) ............................. 132,327,937 -- 45,194,863
Venator Group, Inc. .......................... 61,230,925 15,942,289 --
------------
$855,915,124
============
<CAPTION>
MARKET VALUE REALIZED
JUNE 30, DIVIDEND GAIN
1999 INCOME (LOSS)
---------------- ---------- ------------------
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
<S> <C> <C> <C>
Circuit City Stores, Inc.--
CarMax Group ................................ $ 27,769,500 $ -- $ (17,183,407)
Continental Airlines, Inc. (Class B) ......... 170,922,850 -- 5,836,094
Florida Panthers Holdings, Inc.(a) ........... -- -- (30,818,257)
Millicom International Cellular SA ........... 78,507,450 -- 3,480,203
Mohawk Industries, Inc ....................... 135,761,063 -- 3,649,947
Premier Parks, Inc. .......................... 203,712,600 -- 1,624,494
Teekay Shipping Corp. ........................ 50,074,388 1,176,136 --
Tiffany & Co.(a) ............................. 136,547,500 398,688 41,943,920
Venator Group, Inc. .......................... 118,631,581 -- --
------------ ---------- --------------
$921,926,932 $1,574,824 $ 8,532,994
============ ========== ==============
</TABLE>
- ----------
(a) Holdings represented less than 5% of outstanding shares at June 30,
1999, although ownership was above 5% for a period of time during
the period.
For the six months ended June 30, 1999, the Common Stock Portfolio
incurred brokerage commissions of $5,550,695. This amount includes $4,050 which
was paid to Donaldson, Lufkin & Jenrette Securities Corp. ("DLJ"), an affiliate
of the Adviser.
8. Substitution
An application has been filed with the SEC requesting approval for the
substitution of securities issued by 14 newly-organized portfolios of EQ
Advisors Trust (EQAT) for securities issued by portfolios of the Trust
currently used as underlying investment options for certain variable annuity
contracts and/or variable life insurance policies issued by Equitable and other
insurance companies (the "Substitutions"). Equitable will bear all expenses
incurred in connection with the Substitutions. The 14 newly-organized EQAT
portfolios will have investment objectives, investment strategies and
anticipated risks that are identical in all material respects to those of the
corresponding Trust portfolios. Pursuant to the application, the effect of the
Substitutions will be to transfer the assets and liabilities of each Trust
portfolio to the corresponding new EQAT portfolio. Alliance will continue to
serve as investment advisor for each of the 14 new portfolios with Equitable
serving as the investment manager. Pursuant to the application, there will be
no increase in investment management fees; other Trust operating expenses may
increase slightly. In connection with the anticipated Substitutions, EQAT has
filed with the SEC a post-effective amendment to its registration statement in
order to register the 14 newly-organized portfolios. Subject to SEC approval,
it is expected that the Substitutions will be completed in the fall of 1999.
73
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS
June 30, 1999
SELECTED DATA FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD(a)
ALLIANCE MONEY MARKET PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ----------------------------------------------------------------
JUNE 30,
1999 1998 1997 1996 1995 1994
---------------- ------------ ------------ ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ........................... $10.22 $10.18 $10.17 $10.16 $10.14 $10.12
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................ 0.24 0.53 0.54 0.54 0.57 0.41
Net realized and unrealized
gain (loss) on investments .......... -- -- -- (0.01) -- --
------ ------ ------ ------ ------ ------
Total from investment
operations .......................... 0.24 0.53 0.54 0.53 0.57 0.41
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income .............................. -- (0.49) (0.53) (0.52) (0.55) (0.39)
Dividends in excess of net
investment income ................... -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total dividends and
distributions ....................... -- (0.49) (0.53) (0.52) (0.55) (0.39)
------ ------ ------ ------ ------ ------
Net asset value, end of period ........ $10.46 $10.22 $10.18 $10.17 $10.16 $10.14
====== ====== ====== ====== ====== ======
Total return (c) ...................... 2.28% 5.34% 5.42% 5.33% 5.74% 4.02%
====== ====== ====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $785,055 $723,311 $449,960 $463,422 $386,691 $325,391
Ratio of expenses to average net
assets ............................... 0.36%(d) 0.37% 0.39% 0.43% 0.44% 0.42%
Ratio of net investment income
to average net assets ................ 4.73%(d) 5.13% 5.28% 5.17% 5.53% 4.01%
<CAPTION>
CLASS IB
-----------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 2,
ENDED DECEMBER 31, 1996 TO
JUNE 30, ------------------------- DECEMBER 31,
1999 1998 1997 1996
---------------- ------------ ------------ ----------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ........................... $10.21 $10.17 $10.16 $10.16
------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................ 0.23 0.49 0.52 0.11
Net realized and unrealized
gain (loss) on investments .......... (0.01) 0.02 -- 0.01
------ ------ ------ ------
Total from investment
operations .......................... 0.22 0.51 0.52 0.12
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income .............................. -- (0.47) (0.51) (0.02)
Dividends in excess of net
investment income ................... -- -- -- (0.10)
------ ------ ------ ------
Total dividends and
distributions ....................... -- (0.47) (0.51) (0.12)
------ ------ ------ ------
Net asset value, end of period ........ $10.43 $10.21 $10.17 $10.16
------ ------ ------ ------
====== ====== ====== ======
Total return (c) ...................... 2.16% 5.08% 5.16% 1.29%
====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $366,584 $386,718 $123,675 $3,184
Ratio of expenses to average net
assets ............................... 0.61%(d) 0.62% 0.63% 0.67%(d)
Ratio of net investment income
to average net assets ................ 4.48%(d) 4.82% 5.02% 4.94%(d)
</TABLE>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO(e):
<TABLE>
<CAPTION>
CLASS IA
-----------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
SIX MONTHS ------------------------------------------------------------
ENDED
JUNE 30,
1999 1998 1997 1996 1995 1994
---------------- ------------ ------------ ---------- ---------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ........................... $ 9.67 $ 9.44 $ 9.29 $ 9.47 $ 8.87 $10.08
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................ 0.24 0.50 0.53 0.54 0.58 0.65
Net realized and unrealized
gain (loss) on investments .......... (0.33) 0.21 0.13 (0.19) 0.57 (1.08)
------ ------ ------ ------ ------ ------
Total from investment
operations .......................... (0.09) 0.71 0.66 0.35 1.15 (0.43)
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income .............................. -- (0.48) (0.51) (0.53) (0.55) (0.78)
------ ------ ------ ------ ------ ------
Net asset value, end of period ........ $ 9.58 $ 9.67 $ 9.44 $ 9.29 $ 9.47 $ 8.87
====== ====== ====== ====== ====== ======
Total return (c) ...................... (0.99)% 7.74% 7.29% 3.78% 13.33% (4.37)%
====== ====== ====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $163,877 $153,383 $115,114 $88,384 $71,780 $48,518
Ratio of expenses to average net
assets ............................... 0.55%(d) 0.55% 0.55% 0.56% 0.57% 0.56%
Ratio of net investment income
to average net assets ................ 4.96%(d) 5.21% 5.61% 5.73% 6.15% 6.75%
Portfolio turnover rate ............... 237% 539% 285% 318% 255% 133%
<CAPTION>
CLASS IB
------------------------------------------------
SIX MONTHS MAY 1, 1997
ENDED YEAR ENDED TO
JUNE 30, DECEMBER 31, DECEMBER 31,
1999 1998 1997
---------------- ------------- ----------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of
period (b) ........................... $ 9.66 $ 9.43 $ 9.27
------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................ 0.22 0.47 0.32
Net realized and unrealized
gain (loss) on investments .......... (0.33) 0.22 0.22
------ ------ ------
Total from investment
operations .......................... (0.11) 0.69 0.54
------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income .............................. -- (0.46) (0.38)
------ ------ ------
Net asset value, end of period ........ $ 9.55 $ 9.66 $ 9.43
====== ====== ======
Total return (c) ...................... (1.11)% 7.48% 5.83%
====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $41,401 $30,898 $5,052
Ratio of expenses to average net
assets ............................... 0.80%(d) 0.80% 0.81%(d)
Ratio of net investment income
to average net assets ................ 4.72%(d) 4.87% 5.15%(d)
Portfolio turnover rate ............... 237% 539% 285%
</TABLE>
74
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE QUALITY BOND PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-------------------------------------------------------
YEAR ENDED DECEMBER 31,
SIX MONTHS --------------------------------------
ENDED
JUNE 30,
1999 1998 1997 1996
---------------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period (b) ...... $9.84 $9.74 $9.49 $9.61
----- ----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.26 0.55 0.60 0.57
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................ (0.50) 0.28 0.24 (0.07)
----- ----- ----- -----
Total from investment operations ............. (0.24) 0.83 0.84 0.50
----- ----- ----- -----
LESS DISTRIBUTIONS:
Dividends from net investment income ......... -- (0.53) (0.59) (0.60)
Dividends in excess of net investment
income ...................................... -- -- -- (0.02)
Distributions from realized gains ............ -- (0.20) -- --
Tax return of capital distributions .......... -- -- -- --
----- ----- ----- -----
Total dividends and distributions ............ -- (0.73) (0.59) (0.62)
----- ----- ----- -----
Net asset value, end of period ................ $9.60 $9.84 $9.74 $9.49
===== ===== ===== =====
Total return (c) .............................. (2.38)% 8.69% 9.14% 5.36%
===== ===== ===== =====
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $340,458 $322,418 $203,233 $155,023
Ratio of expenses to average net assets ....... 0.56%(d) 0.57% 0.57% 0.59%
Ratio of net investment income to average
net assets ................................... 5.44%(d) 5.48% 6.19% 6.06%
Portfolio turnover rate ....................... 99% 194% 374% 431%
<CAPTION>
CLASS IA CLASS IB
------------------------- ----------------------------------
YEAR ENDED DECEMBER 31, Six Months Ended JULY 8, 1998 TO
------------------------- June 30, DECEMBER 31,
1995 1994 1999 1998
------------ ------------ ---------------- -----------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period (b) ...... $ 8.72 $ 9.82 $ 9.84 $ 9.90
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.57 0.66 0.25 0.25
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................ 0.88 (1.16) (0.50) 0.14
------ ------ ------ ------
Total from investment operations ............. 1.45 (0.50) (0.25) 0.39
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income ......... (0.56) (0.55) -- (0.25)
Dividends in excess of net investment
income ...................................... -- -- -- --
Distributions from realized gains ............ -- -- -- (0.20)
Tax return of capital distributions .......... -- (0.05) -- --
------ ------ ------ ------
Total dividends and distributions ............ (0.56) (0.60) -- (0.45)
------ ------ ------ ------
Net asset value, end of period ................ $ 9.61 $ 8.72 $ 9.59 $ 9.84
====== ====== ====== ======
Total return (c) .............................. 17.02% (5.10)% (2.52)% 4.05%
====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $157,443 $127,575 $ 167 $ 10
Ratio of expenses to average net assets ....... 0.59% 0.59% 0.81%(d) 0.81%(d)
Ratio of net investment income to average
net assets ................................... 6.13% 7.17% 5.21%(d) 5.06%(d)
Portfolio turnover rate ....................... 411% 222% 99% 194%
</TABLE>
75
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE HIGH YIELD PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED --------------------------------------------------------------
JUNE 30,
1999 1998 1997 1996 1995 1994
---------------- ----------- ----------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ....................... $ 8.71 $10.41 $10.02 $ 9.64 $ 8.91 $10.08
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............ 0.47 1.07 1.04 1.02 0.98 0.89
Net realized and unrealized
gain (loss) on investments (0.62) (1.56) 0.75 1.07 0.73 (1.17)
------ ------ ------ ------ ------ ------
Total from investment
operations ...................... (0.15) (0.49) 1.79 2.09 1.71 (0.28)
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net
investment income ............... -- (1.03) (0.97) (0.98) (0.94) (0.88)
Dividends in excess of net
investment income ............... -- -- -- (0.03) (0.04) (0.01)
Distributions from realized
gains ........................... -- (0.18) (0.43) (0.70) -- --
Distributions in excess of
realized gains .................. -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total dividends and
distributions ................... -- (1.21) (1.40) (1.71) (0.98) (0.89)
------ ------ ------ ------ ------ ------
Net asset value, end of period $ 8.56 $ 8.71 $10.41 $10.02 $ 9.64 $ 8.91
====== ====== ====== ====== ====== ======
Total return (c) .................. (1.68)% (5.15)% 18.48% 22.89% 19.92% (2.79)%
====== ====== ====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) .......................... $379,653 $405,308 $355,473 $199,360 $118,129 $73,895
Ratio of expenses to average
net assets ....................... 0.63%(d) 0.63% 0.62% 0.59% 0.60% 0.61%
Ratio of net investment
income to average net
assets ........................... 11.00%(d) 10.67% 9.82% 9.93% 10.34% 9.23%
Portfolio turnover rate ........... 87% 181% 390% 485% 350% 248%
<CAPTION>
CLASS IB
---------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 2,
ENDED DECEMBER 31, 1996 TO
JUNE 30, ----------------------- DECEMBER 31,
1999 1998 1997 1996
---------------- ----------- ----------- ----------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ....................... $ 8.69 $10.39 $10.01 $10.25
------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............ 0.46 1.04 1.05 0.19
Net realized and unrealized
gain (loss) on investments (0.62) (1.56) 0.71 0.15
------ ------ ------ ------
Total from investment
operations ...................... (0.16) (0.52) 1.76 0.34
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net
investment income ............... -- (1.00) (0.95) (0.03)
Dividends in excess of net
investment income ............... -- -- -- (0.25)
Distributions from realized
gains ........................... -- (0.18) (0.43) (0.01)
Distributions in excess of
realized gains .................. -- -- -- (0.29)
------ ------ ------ ------
Total dividends and
distributions ................... -- (1.18) (1.38) (0.58)
------ ------ ------ ------
Net asset value, end of period $ 8.53 $ 8.69 $10.39 $10.01
====== ====== ====== ======
Total return (c) .................. (1.80)% (5.38)% 18.19% 3.32%
====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) .......................... $222,470 $207,042 $66,338 $685
Ratio of expenses to average
net assets ....................... 0.88%(d) 0.88% 0.88% 0.82%(d)
Ratio of net investment
income to average net
assets ........................... 10.74%(d) 10.60% 9.76% 8.71%(d)
Portfolio turnover rate ........... 87% 181% 390% 485%
</TABLE>
76
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE GROWTH AND INCOME PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------------------
1999 1998 1997 1996 1995 1994
----------------- ----------- ----------- ----------- ---------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ....................... $16.99 $15.38 $13.01 $11.70 $ 9.70 $ 9.95
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............ 0.05 0.06 0.15 0.24 0.33 0.31
Net realized and unrealized
gain (loss) on investments 2.34 3.08 3.30 2.05 1.97 (0.36)
------ ------ ------ ------ ------ ------
Total from investment
operations ...................... 2.39 3.14 3.45 2.29 2.30 (0.05)
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net
investment income ............... -- (0.05) (0.15) (0.23) (0.30) (0.20)
Distributions from realized
gains ........................... -- (1.48) (0.93) (0.75) -- --
------ ------ ------ ------ ------ ------
Total dividends and
distributions ................... -- (1.53) (1.08) (0.98) (0.30) (0.20)
------ ------ ------ ------ ------ ------
Net asset value, end of period $19.38 $16.99 $15.38 $13.01 $11.70 $ 9.70
====== ====== ====== ====== ====== ======
Total return (c) .................. 14.08% 20.86% 26.90% 20.09% 24.07% (0.58)%
====== ====== ====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) .......................... $1,120,582 $877,744 $555,059 $232,080 $98,053 $31,522
Ratio of expenses to average
net assets ....................... 0.56%(d) 0.58% 0.58% 0.58% 0.60% 0.78%
Ratio of net investment
income to average net
assets ........................... 0.54%(d) 0.38% 0.99% 1.94% 3.11% 3.13%
Portfolio turnover rate ........... 35% 74% 79% 88% 65% 52%
<CAPTION>
CLASS IB
--------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED MAY 1, 1997
JUNE 30, DECEMBER 31, TO
1999 1998 DECEMBER 31, 1997
---------------- ------------- ------------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of
period (b) ....................... $16.95 $15.36 $13.42
------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............ 0.03 0.03 0.05
Net realized and unrealized
gain (loss) on investments 2.34 3.07 2.91
------ ------ ------
Total from investment
operations ...................... 2.37 3.10 2.96
------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net
investment income ............... -- (0.03) (0.09)
Distributions from realized
gains ........................... -- (1.48) (0.93)
------ ------ ------
Total dividends and
distributions ................... -- (1.51) (1.02)
------ ------ ------
Net asset value, end of period $19.32 $16.95 $15.36
====== ====== ======
Total return (c) .................. 13.94% 20.56% 22.41%
====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) .......................... $186,084 $120,558 $32,697
Ratio of expenses to average
net assets ....................... 0.81%(d) 0.83% 0.83%(d)
Ratio of net investment
income to average net
assets ........................... 0.30%(d) 0.17% 0.43%(d)
Portfolio turnover rate ........... 35% 74% 79%
</TABLE>
77
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE EQUITY INDEX PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ---------------------------------------------------
1999 1998 1997 1996 1995
----------------- -------------- ----------- ----------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ....................... $25.00 $19.74 $15.16 $13.13 $ 9.87
------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............ 0.15 0.27 0.26 0.27 0.26
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions .................... 2.85 5.25 4.64 2.65 3.32
------ ------ ------ ------ ------
Total from investment
operations ...................... 3.00 5.52 4.90 2.92 3.58
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net
investment income ............... -- (0.25) (0.25) (0.25) (0.22)
Distributions from realized
gains ........................... -- (0.01) (0.07) (0.64) (0.09)
Distributions in excess of
realized gains .................. -- -- -- -- (0.01)
------ ------ ------ ------ ------
Total dividends and
distributions ................... -- (0.26) (0.32) (0.89) (0.32)
------ ------ ------ ------ ------
Net asset value, end of period $28.00 $25.00 $19.74 $15.16 $13.13
====== ====== ====== ====== ======
Total return (c) .................. 12.01% 28.07% 32.58% 22.39% 36.48%
====== ====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) .......................... $2,344,018 $1,689,913 $943,631 $386,249 $165,785
Ratio of expenses to average
net assets ....................... 0.32%(d) 0.34% 0.37% 0.39% 0.48%
Ratio of net investment
income to average net
assets ........................... 1.14%(d) 1.23% 1.46% 1.91% 2.16%
Portfolio turnover rate ........... 2% 6% 3% 15% 9%
<CAPTION>
CLASS IA CLASS IB
--------------- ---------------------------------------------
MARCH 1, 1994 SIX MONTHS YEAR MAY 1, 1997
TO ENDED ENDED TO
DECEMBER 31, JUNE 30, DECEMBER 31, DECEMBER 31,
1994 1999 1998 1997
--------------- ---------------- -------------- -------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ....................... $10.00 $24.98 $19.73 $16.35
------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............ 0.20 0.12 0.22 0.14
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions .................... (0.09) 2.84 5.24 3.48
------ ------ ------ ------
Total from investment
operations ...................... 0.11 2.96 5.46 3.62
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net
investment income ............... (0.20) -- (0.20) (0.17)
Distributions from realized
gains ........................... (0.03) -- (0.01) (0.07)
Distributions in excess of
realized gains .................. (0.01) -- -- --
------ ------ ------ ------
Total dividends and
distributions ................... (0.24) -- (0.21) (0.24)
------ ------ ------ ------
Net asset value, end of period $ 9.87 $27.94 $24.98 $19.73
====== ====== ====== ======
Total return (c) .................. 1.08% 11.87% 27.74% 22.28%
====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) .......................... $36,748 $6,464 $443 $110
Ratio of expenses to average
net assets ....................... 0.49%(d) 0.57%(d) 0.59% 0.62%(d)
Ratio of net investment
income to average net
assets ........................... 2.42%(d) 0.94%(d) 0.98% 1.10%(d)
Portfolio turnover rate ........... 7% 2% 6% 3%
</TABLE>
78
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE COMMON STOCK PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ---------------------------------------------
JUNE 30,
1999 1998 1997 1996
------------------ --------------- -------------- --------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ....................... $24.35 $ 21.61 $ 18.23 $ 16.48
--------- ----------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............ 0.11 0.18 0.14 0.15
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions .................... 3.23 5.99 5.12 3.73
--------- ----------- ---------- ----------
Total from investment
operations ...................... 3.34 6.17 5.26 3.88
--------- ----------- ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net
investment income ............... -- (0.15) (0.11) (0.15)
Dividends in excess of net
investment income ............... -- -- -- --
Distributions from realized
gains ........................... -- (3.28) (1.77) (1.76)
Distributions in excess of
realized gains .................. -- -- -- (0.22)
Tax return of capital
distributions ................... -- -- -- --
--------- ----------- ---------- ----------
Total dividends and
distributions ................... -- (3.43) (1.88) (2.13)
--------- ----------- ---------- ----------
Net asset value, end of period $ 27.69 $ 24.35 $ 21.61 $ 18.23
========= =========== ========== ==========
Total return (c) .................. 13.69% 29.39% 29.40% 24.28%
========= =========== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) .......................... $13,779,459 $12,061,977 $9,331,994 $6,625,390
Ratio of expenses to average
net assets ....................... 0.38%(d) 0.39% 0.39% 0.38%
Ratio of net investment
income to average net
assets ........................... 0.85%(d) 0.75% 0.69% 0.85%
Portfolio turnover rate ........... 34% 46% 52% 55%
<CAPTION>
CLASS IA CLASS IB
----------------------------- ----------------------------------------------------------
YEAR ENDED OCTOBER 2, 1996
YEAR ENDED DECEMBER 31, SIX MONTHS DECEMBER 31, TO
----------------------------- ENDED JUNE 30, ----------------------- DECEMBER 31,
1995 1994 1999 1998 1997 1996
-------------- -------------- ----------------- ----------- ----------- ----------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ....................... $ 13.36 $ 14.65 $ 24.30 $ 21.58 $ 18.22 $ 17.90
---------- ---------- -------- -------- -------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............ 0.20 0.20 0.08 0.10 0.10 0.02
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions .................... 4.12 (0.51) 3.21 6.00 5.11 1.52
---------- ---------- -------- -------- -------- ---------
Total from investment
operations ...................... 4.32 (0.31) 3.29 6.10 5.21 1.54
---------- ---------- -------- -------- -------- ---------
LESS DISTRIBUTIONS:
Dividends from net
investment income ............... (0.20) (0.19) -- (0.10) (0.08) (0.00)
Dividends in excess of net
investment income ............... (0.02) (0.01) -- -- -- (0.03)
Distributions from realized
gains ........................... (0.95) (0.77) -- (3.28) (1.77) (0.16)
Distributions in excess of
realized gains .................. (0.03) -- -- -- -- (1.03)
Tax return of capital
distributions ................... -- (0.01) -- -- -- --
---------- ---------- -------- -------- -------- ---------
Total dividends and
distributions ................... (1.20) (0.98) -- (3.38) (1.85) (1.22)
---------- ---------- -------- -------- -------- ---------
Net asset value, end of period $ 16.48 $ 13.36 $ 27.59 $ 24.30 $ 21.58 $ 18.22
========== ========== ======== ======== ======== =========
Total return (c) .................. 32.45% (2.14)% 13.55% 29.06% 29.07% 8.49%
========== ========== ======== ======== ======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) .......................... $4,879,677 $3,466,245 $1,235,773 $834,144 $228,780 $ 1,244
Ratio of expenses to average
net assets ....................... 0.38% 0.38% 0.62%(d) 0.64% 0.64% 0.63%(d)
Ratio of net investment
income to average net
assets ........................... 1.27% 1.40% 0.61%(d) 0.44% 0.46% 0.61%(d)
Portfolio turnover rate ........... 61% 52% 34% 46% 52% 55%
</TABLE>
79
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE GLOBAL PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-----------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED -----------------------------------------------------------------
JUNE 30,
1999 1998 1997 1996 1995 1994
----------------- -------------- -------------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ........................... $ 19.46 $ 17.29 $ 16.92 $ 15.74 $ 13.87 $ 13.62
-------- ---------- ---------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................ 0.08 0.14 0.17 0.21 0.26 0.20
Net realized and unrealized
gain on investments and
foreign currency transactions 2.31 3.56 1.75 2.05 2.32 0.52
-------- ---------- ---------- -------- -------- --------
Total from investment
operations .......................... 2.39 3.70 1.92 2.26 2.58 0.72
-------- ---------- ---------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment
income .............................. -- (0.22) (0.36) (0.21) (0.25) (0.17)
Dividends in excess of net
investment income ................... -- -- -- (0.08) -- --
Distributions from realized
gains ............................... -- (1.31) (1.19) (0.79) (0.42) (0.28)
Distributions in excess of
realized gains ...................... -- -- -- -- (0.03) (0.00)
Tax return of capital
distributions ....................... -- -- -- (0.00) (0.01) (0.02)
-------- ---------- ---------- -------- -------- --------
Total dividends and
distributions ....................... -- (1.53) (1.55) (1.08) (0.71) (0.47)
-------- ---------- ---------- -------- -------- --------
Net asset value, end of period ........ $ 21.85 $ 19.46 $ 17.29 $ 16.92 $ 15.74 $ 13.87
======== ========== ========== ======== ======== ========
Total return (c) ...................... 12.32% 21.80% 11.66% 14.60% 18.81% 5.23%
======== ========== ========== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $1,553,371 $1,360,220 $1,203,867 $997,041 $686,140 $421,698
Ratio of expenses to average net
assets ............................... 0.70%(d) 0.71% 0.69% 0.60% 0.61% 0.69%
Ratio of net investment income
to average net assets ................ 0.82%(d) 0.72% 0.97% 1.28% 1.76% 1.41%
Portfolio turnover rate ............... 28% 105% 57% 59% 67% 71%
<CAPTION>
CLASS IB
---------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 2,
ENDED DECEMBER 31, 1996 TO
JUNE 30, ----------------------- DECEMBER 31,
1999 1998 1997 1996
---------------- ----------- ----------- ----------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ........................... $ 19.41 $ 17.27 $ 16.91 $ 16.57
--------- ------- ------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................ 0.06 0.08 0.12 0.02
Net realized and unrealized
gain on investments and
foreign currency transactions 2.31 3.56 1.76 0.81
--------- ------- ------- ---------
Total from investment
operations .......................... 2.37 3.64 1.88 0.83
--------- ------- ------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment
income .............................. -- (0.19) (0.33) --
Dividends in excess of net
investment income ................... -- -- -- (0.11)
Distributions from realized
gains ............................... -- (1.31) (1.19) (0.10)
Distributions in excess of
realized gains ...................... -- -- -- (0.28)
Tax return of capital
distributions ....................... -- -- -- (0.00)
--------- ------- ------- ---------
Total dividends and
distributions ....................... -- (1.50) (1.52) (0.49)
--------- ------- ------- ---------
Net asset value, end of period ........ $ 21.78 $ 19.41 $ 17.27 $ 16.91
========= ======= ======= =========
Total return (c) ...................... 12.18% 21.50% 11.38% 4.98%
========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $ 68,473 $47,982 $21,520 $ 290
Ratio of expenses to average net
assets ............................... 0.95%(d) 0.96% 0.97% 0.86%(d)
Ratio of net investment income
to average net assets ................ 0.59%(d) 0.41% 0.67% 0.48%(d)
Portfolio turnover rate ............... 28% 105% 57% 59%
</TABLE>
80
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE INTERNATIONAL PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------------------
SIX MONTHS APRIL 3, 1995
ENDED YEAR ENDED DECEMBER 31, TO
JUNE 30, ----------------------------------- DECEMBER 31,
1999 1998 1997 1996 1995
---------------- ----------- ----------- ----------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ........................... $ 11.13 $ 10.27 $ 11.50 $ 10.87 $ 10.00
--------- -------- -------- -------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................ 0.09 0.09 0.10 0.13 0.14
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ........................ 0.56 0.97 (0.45) 0.94 0.98
--------- -------- -------- -------- -------
Total from investment
operations .......................... 0.65 1.06 (0.35) 1.07 1.12
--------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income .............................. -- (0.20) (0.32) (0.10) (0.07)
Dividends in excess of net
investment income ................... -- -- -- (0.09) (0.13)
Distributions from realized
gains ............................... -- (0.00) (0.56) (0.25) (0.05)
--------- -------- -------- -------- -------
Total dividends and
distributions ....................... -- (0.20) (0.88) (0.44) (0.25)
--------- -------- -------- -------- -------
Net asset value, end of period ........ $ 11.78 $ 11.13 $10.27 $11.50 $10.87
========= ======== ======== ======== =======
Total return (c) ...................... 5.85% 10.57% (2.98)% 9.82% 11.29%
========= ========== ========== ========== =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $ 246,170 $204,767 $190,611 $151,907 $28,684
Ratio of expenses to average net
assets ............................... 1.05%(d) 1.06% 1.08% 1.06% 1.03%(d)
Ratio of net investment income
to average net assets ................ 1.53%(d) 0.81% 0.83% 1.10% 1.71%(d)
Portfolio turnover rate ............... 78% 59% 59% 48% 56%
<CAPTION>
CLASS IB
--------------------------------------------
SIX MONTHS MAY 1, 1997
ENDED YEAR ENDED TO
JUNE 30, DECEMBER 31, DECEMBER 31,
1999 1998 1997
---------------- ------------- -------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of
period (b) ........................... $ 11.11 $ 10.26 $ 11.39
--------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................ 0.07 0.05 0.02
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ........................ 0.57 0.98 (0.31)
--------- ------- -------
Total from investment
operations .......................... 0.64 1.03 (0.29)
--------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income .............................. -- (0.18) (0.28)
Dividends in excess of net
investment income ................... -- -- --
Distributions from realized
gains ............................... -- (0.00) (0.56)
--------- ------- -------
Total dividends and
distributions ....................... -- (0.18) (0.84)
--------- ------- -------
Net asset value, end of period ........ $ 11.75 $ 11.11 $ 10.26
========= ======= =======
Total return (c) ...................... 5.72% 10.30% (2.54)%
========= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $ 9,383 $ 7,543 $3,286
Ratio of expenses to average net
assets ............................... 1.30%(d) 1.31% 1.38%(d)
Ratio of net investment income
to average net assets ................ 1.32%(d) 0.44% 0.20%(d)
Portfolio turnover rate ............... 78% 59% 59%
</TABLE>
81
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED --------------------------------------------------------------------------
JUNE 30,
1999 1998 1997 1996 1995 1994
----------------- -------------- -------------- -------------- -------------- --------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ...................... $ 34.15 $ 36.22 $ 35.85 $ 35.68 $ 30.63 $ 31.89
-------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.06 0.09 0.04 0.09 0.10 0.04
Net realized and unrealized
gain (loss) on investments 4.17 (0.28) 3.71 7.52 9.54 (1.26)
-------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations ..................... 4.23 (0.19) 3.75 7.61 9.64 (1.22)
-------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. -- (0.16) (0.05) ((0.09) (0.10) (0.04)
Dividends in excess of net
investment income .............. -- -- -- (0.00) -- --
Distributions from realized
gains .......................... -- (1.72) (3.33) (7.33) (4.49) --
Distributions in excess of
realized gains ................. -- -- -- (0.02) -- --
Tax return of capital
distributions .................. -- -- -- -- -- (0.00)
-------- ---------- ---------- ---------- ---------- ----------
Total dividends and
distributions .................. -- (1.88) (3.38) (7.44) (4.59) (0.04)
-------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 38.38 $ 34.15 $ 36.22 $ 35.85 $ 35.68 $ 30.63
======== ========== ========== ========== ========== ==========
Total return (c) ................. 12.38% 0.29% 10.94% 22.20% 31.63% (3.81)%
======== ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $4,369,334 $4,346,907 $4,589,771 $3,865,256 $2,700,515 $1,832,164
Ratio of expenses to average
net assets ...................... 0.56%(d) 0.56% 0.54% 0.48% 0.49% 0.49%
Ratio of net investment
income (loss) to average
net assets ...................... 0.32%(d) 0.24% 0.11% 0.24% 0.28% 0.12%
Portfolio turnover rate .......... 35% 105% 123% 108% 127% 92%
<CAPTION>
CLASS IB
------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 2,
ENDED DECEMBER 31, 1996 TO
JUNE 30, ------------------------ DECEMBER 31,
1999 1998 1997 1996
---------------- ----------- ------------ ------------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ...................... $ 34.01 $ 36.13 $ 35.83 $ 37.28
--------- -------- ------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.01 0.01 (0.11) (0.01)
Net realized and unrealized
gain (loss) on investments 4.16 (0.29) 3.77 0.85
--------- -------- ------- ----------
Total from investment
operations ..................... 4.17 (0.28) 3.66 0.84
--------- -------- ------- ----------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. -- (0.12) (0.03) --
Dividends in excess of net
investment income .............. -- -- -- (0.02)
Distributions from realized
gains .......................... -- (1.72) (3.33) (0.23)
Distributions in excess of
realized gains ................. -- -- -- (2.04)
Tax return of capital
distributions .................. -- -- -- --
--------- -------- ------- ----------
Total dividends and
distributions .................. -- (1.84) (3.36) (2.29)
--------- -------- ------- ----------
Net asset value, end of period $ 38.18 $ 34.01 $ 36.13 $ 35.83
========= ======== ======= ==========
Total return (c) ................. 12.24% 0.05% 10.66% 2.32%
========= ======== ======= ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $ 195,480 $153,782 $73,486 $ 613
Ratio of expenses to average
net assets ...................... 0.81%(d) 0.82% 0.81% 0.73%(d)
Ratio of net investment
income (loss) to average
net assets ...................... 0.08%(d) 0.02% (0.28)% (0.10)%(d)
Portfolio turnover rate .......... 35% 105% 123% 108%
</TABLE>
82
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE SMALL CAP GROWTH PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-----------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED MAY 1, 1997
JUNE 30, DECEMBER 31, TO
1999 1998 DECEMBER 31, 1997
------------------ -------------- -------------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period (b) ...... $ 11.82 $ 12.35 $ 10.00
---------- -------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................. (0.02) 0.01 0.01
Net realized and unrealized gain (loss) on
investments ................................. (0.03) (0.54) 2.65
---------- -------- ---------
Total from investment operations ............. (0.05) (0.53) 2.66
---------- -------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ......... -- -- (0.01)
Distributions from realized gains ............ -- -- (0.30)
---------- -------- ---------
Total dividends and distributions ............ -- -- (0.31)
---------- -------- ---------
Net asset value, end of period ................ $ 11.77 $ 11.82 $ 12.35
========== ======== =========
Total return (c) .............................. (0.49)% (4.28)% 26.74%
========== ============ =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $ 183,363 $198,360 $ 94,676
Ratio of expenses to average net assets ....... 0.95%(d) 0.96% 0.95%(d)
Ratio of net investment income (loss) to
average net assets ........................... (0.37)%(d) 0.08% 0.10%(d)
Portfolio turnover rate ....................... 113% 94% 96%
<CAPTION>
CLASS IB
----------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED MAY 1, 1997
JUNE 30, DECEMBER 31, TO
1999 1998 DECEMBER 31, 1997
------------------ -------------- ------------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period (b) ...... $ 11.79 $ 12.34 $ 10.00
---------- -------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................. (0.03) (0.02) (0.01)
Net realized and unrealized gain (loss) on
investments ................................. (0.04) (0.53) 2.65
---------- -------- ----------
Total from investment operations ............. (0.07) (0.55) 2.64
---------- -------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ......... -- -- --
Distributions from realized gains ............ -- -- (0.30)
---------- -------- ----------
Total dividends and distributions ............ -- -- (0.30)
---------- -------- ----------
Net asset value, end of period ................ $ 11.72 $ 11.79 $ 12.34
========== ======== ==========
Total return (c) .............................. (0.61)% (4.44)% 26.57%
========== ============ ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $ 113,562 $112,254 $ 46,324
Ratio of expenses to average net assets ....... 1.20%(d) 1.20% 1.15%(d)
Ratio of net investment income (loss) to
average net assets ........................... (0.62)%(d) (0.17)% (0.12)%(d)
Portfolio turnover rate ....................... 113% 94% 96%
</TABLE>
83
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------------------
1999 1998 1997 1996 1995 1994
---------------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) .......................... $ 12.32 $ 11.89 $ 11.29 $ 11.52 $ 10.15 $ 11.12
--------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............... 0.23 0.49 0.49 0.50 0.60 0.55
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ....................... 0.28 1.12 0.97 0.07 1.43 (1.00)
--------- -------- -------- -------- -------- --------
Total from investment
operations ......................... 0.51 1.61 1.46 0.57 2.03 (0.45)
--------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment
income ............................. -- (0.48) (0.49) (0.51) (0.59) (0.52)
Distributions from realized
gains .............................. -- (0.70) (0.37) (0.27) (0.07) --
Distributions in excess of
realized gains ..................... -- -- -- (0.02) -- --
--------- -------- -------- -------- -------- --------
Total dividends and
distributions ...................... -- (1.18) (0.86) (0.80) (0.66) (0.52)
--------- -------- -------- -------- -------- --------
Net asset value, end of period ....... $ 12.83 $ 12.32 $ 11.89 $ 11.29 $ 11.52 $ 10.15
========= ======== ======== ======== ======== ========
Total return (c) ..................... 4.13% 13.88% 13.25% 5.21% 20.40% (4.10)%
========= ======== ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .... $ 376,637 $355,441 $307,847 $282,402 $252,101 $173,691
Ratio of expenses to average net
assets .............................. 0.52%(d) 0.53% 0.57% 0.61% 0.59% 0.59%
Ratio of net investment income
to average net assets ............... 3.63%(d) 3.99% 4.17% 4.48% 5.48% 5.22%
Portfolio turnover rate .............. 64% 103% 206% 181% 287% 228%
<CAPTION>
CLASS IB
--------------------------------------------
SIX MONTHS YEAR MAY 1, 1997
ENDED ENDED TO
JUNE 30, DECEMBER 31, DECEMBER 31,
1999 1998 1997
---------------- ------------- -------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of
period (b) .......................... $ 12.31 $ 11.88 $ 11.29
--------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............... 0.21 0.46 0.31
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ....................... 0.28 1.12 1.01
--------- ------- -------
Total from investment
operations ......................... 0.49 1.58 1.32
--------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income ............................. -- (0.45) (0.36)
Distributions from realized
gains .............................. -- (0.70) (0.37)
Distributions in excess of
realized gains ..................... -- -- --
--------- ------- -------
Total dividends and
distributions ...................... -- (1.15) (0.73)
--------- ------- -------
Net asset value, end of period ....... $ 12.80 $ 12.31 $ 11.88
========= ======= =======
Total return (c) ..................... 4.00% 13.60% 11.84%
========= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .... $57,405 $32,653 $5,694
Ratio of expenses to average net
assets .............................. 0.77%(d) 0.78% 0.80%(d)
Ratio of net investment income
to average net assets ............... 3.39%(d) 3.68% 3.82%(d)
Portfolio turnover rate .............. 64% 103% 206%
</TABLE>
84
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE BALANCED PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------
1999 1998 1997 1996
----------------- -------------- -------------- --------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 18.51 $ 17.58 $ 16.64 $ 16.76
-------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.26 0.56 0.58 0.53
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. 0.95 2.54 1.86 1.31
-------- ---------- ---------- ----------
Total from investment operations .............. 1.21 3.10 2.44 1.84
-------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... -- (0.50) (0.59) (0.53)
Dividends in excess of net investment
income ....................................... -- -- -- --
Distributions from realized gains ............. -- (1.67) (0.91) (1.40)
Distributions in excess of realized gains ..... -- -- -- (0.03)
Tax return of capital distributions ........... -- -- -- --
-------- ---------- ---------- ----------
Total dividends and distributions ............. -- (2.17) (1.50) (1.96)
-------- ---------- ---------- ----------
Net asset value, end of period ................. $ 19.72 $ 18.51 $ 17.58 $ 16.64
======== ========== ========== ==========
Total return (c) ............................... 6.55% 18.11% 15.06% 11.68%
======== ============== ============== ==============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $2,012,051 $1,936,429 $1,724,089 $1,637,856
Ratio of expenses to average net assets ........ 0.44%(d) 0.45% 0.45% 0.41%
Ratio of net investment income to average
net assets .................................... 2.74%(d) 3.00% 3.30% 3.15%
Portfolio turnover rate ........................ 63% 95% 146% 177%
<CAPTION>
CLASS IA CLASS IB
----------------------------- ---------------------------------
SIX MONTHS JULY 8, 1998
YEAR ENDED DECEMBER 31, ENDED TO
----------------------------- JUNE 30, DECEMBER 31,
1995 1994 1999 1998
-------------- -------------- ---------------- ----------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 14.87 $ 16.67 $ 18.51 $ 19.48
---------- ---------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.54 0.45 0.24 0.24
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. 2.36 (1.78) 0.94 0.66
---------- ---------- --------- ---------
Total from investment operations .............. 2.90 (1.33) 1.18 0.90
---------- ---------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (0.54) (0.44) -- (0.20)
Dividends in excess of net investment
income ....................................... -- (0.03) -- --
Distributions from realized gains ............. (0.47) -- -- (1.67)
Distributions in excess of realized gains ..... -- -- -- --
Tax return of capital distributions ........... -- (0.00) -- --
---------- ---------- --------- ---------
Total dividends and distributions ............. (1.01) (0.47) -- (1.87)
---------- ---------- --------- ---------
Net asset value, end of period ................. $ 16.76 $ 14.87 $ 19.69 $ 18.51
========== ========== ========= =========
Total return (c) ............................... 19.75% (8.02)% 6.42% 4.92%
========== ========== ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $1,523,142 $1,329,820 $7,286 $ 10
Ratio of expenses to average net assets ........ 0.40% 0.39% 0.69%(d) 0.70%(d)
Ratio of net investment income to average
net assets .................................... 3.33% 2.87% 2.55%(d) 2.65%(d)
Portfolio turnover rate ........................ 186% 115% 63% 95%
</TABLE>
85
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1999
ALLIANCE GROWTH INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED --------------------------------------------------------------------
JUNE 30,
1999 1998 1997 1996 1995 1994
----------------- -------------- -------------- -------------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ........................... $ 19.87 $ 18.55 $ 17.20 $ 17.68 $ 14.66 $ 15.61
-------- ---------- ---------- ---------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................ 0.19 0.41 0.41 0.40 0.57 0.50
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ........................ 1.93 3.03 2.43 1.66 3.24 (0.98)
-------- ---------- ---------- ---------- -------- --------
Total from investment
operations .......................... 2.12 3.44 2.84 2.06 3.81 (0.48)
-------- ---------- ---------- ---------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment
income .............................. -- (0.41) (0.46) (0.40) (0.54) (0.46)
Dividends in excess of net
investment income ................... -- -- -- (0.03) (0.01) (0.01)
Distributions from realized
gains ............................... -- (1.71) (1.03) (2.10) (0.24) --
Distributions in excess of
realized gains ...................... -- -- -- (0.01) -- --
-------- ---------- ---------- ---------- -------- --------
Total dividends and
distributions ....................... -- (2.12) (1.49) (2.54) (0.79) (0.47)
-------- ---------- ---------- ---------- -------- --------
Net asset value, end of period ........ $ 21.99 $ 19.87 $ 18.55 $ 17.20 $ 17.68 $ 14.66
======== ========== ========== ========== ======== ========
Total return (c) ...................... 10.63% 19.13% 16.87% 12.61% 26.37% (3.15)%
======== ========== ========== ========== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $2,189,695 $1,963,074 $1,630,389 $1,301,643 $896,134 $492,478
Ratio of expenses to average net
assets ............................... 0.54%(d) 0.55% 0.57% 0.57% 0.56% 0.59%
Ratio of net investment income
to average net assets ................ 1.83%(d) 2.10% 2.18% 2.31% 3.43% 3.32%
Portfolio turnover rate ............... 56% 102% 121% 190% 107% 131%
<CAPTION>
CLASS IB
---------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 2,
ENDED DECEMBER 31, 1996 TO
JUNE 30, ----------------------- DECEMBER 31,
1999 1998 1997 1996
---------------- ----------- ----------- ----------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period (b) ........................... $ 19.84 $ 18.52 $ 17.19 $ 16.78
--------- ------- ------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................ 0.16 0.36 0.36 0.07
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ........................ 1.92 3.03 2.43 0.71
--------- ------- ------- ---------
Total from investment
operations .......................... 2.08 3.39 2.79 0.78
--------- ------- ------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment
income .............................. -- (0.36) (0.43) (0.02)
Dividends in excess of net
investment income ................... -- -- -- (0.09)
Distributions from realized
gains ............................... -- (1.71) (1.03) (0.02)
Distributions in excess of
realized gains ...................... -- -- -- (0.24)
--------- ------- ------- ---------
Total dividends and
distributions ....................... -- (2.07) (1.46) (0.37)
--------- ------- ------- ---------
Net asset value, end of period ........ $ 21.92 $ 19.84 $ 18.52 $ 17.19
========= ======= ======= =========
Total return (c) ...................... 10.50% 18.83% 16.58% 4.64%
========= ======= ======= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $ 134,973 $92,027 $35,730 $ 472
Ratio of expenses to average net
assets ............................... 0.79%(d) 0.80% 0.82% 0.84%(d)
Ratio of net investment income
to average net assets ................ 1.58%(d) 1.85% 1.88% 1.69%(d)
Portfolio turnover rate ............... 56% 102% 121% 190%
</TABLE>
86
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Concluded)
June 30, 1999
- ---------
(a) Net investment income and capital changes per share are based upon
monthly average shares outstanding.
(b) Date as of which funds were first allocated to the Portfolios are as
follows:
Class IA:
Alliance Common Stock Portfolio--June 16, 1975
Alliance Money Market Portfolio--July 13, 1981
Alliance Balanced Portfolio--January 27, 1986
Alliance Aggressive Stock Portfolio--January 27, 1986
Alliance High Yield Portfolio--January 2, 1987
Alliance Global Portfolio--August 27, 1987
Alliance Conservative Investors Portfolio--October 2, 1989
Alliance Growth Investors Portfolio--October 2, 1989
Alliance Intermediate Government Securities Portfolio--April 1, 1991
Alliance Quality Bond Portfolio--October 1, 1993
Alliance Growth and Income Portfolio--October 1, 1993
Alliance Equity Index Portfolio--March 1, 1994
Alliance International Portfolio--April 3, 1995
Alliance Small Cap Growth Portfolio--May 1, 1997
Class IB:
Alliance Money Market, Alliance High Yield, Alliance Common Stock, Alliance
Global, Alliance Aggressive Stock and Alliance Growth Investors
Portfolios--October 2, 1996.
Alliance Intermediate Government Securities, Alliance Growth and Income,
Alliance Equity Index, Alliance International, Alliance Small Cap Growth and
Alliance Conservative Investors Portfolios--May 1, 1997.
Alliance Quality Bond and Alliance Balanced Portfolios--July 8, 1998.
(c) Total return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of
all dividends and distributions at net asset value during the
period, and redemption on the last day of the period. Total return
calculated for a period of less than one year is not annualized.
(d) Annualized.
(e) On February 22, 1994, shares of the Alliance Intermediate Government
Securities Portfolio of the Trust were substituted for shares of the
Trust's Alliance Short-Term World Income Portfolio.
87
