<PAGE>
BANKERS NATIONAL LIFE INSURANCE COMPANY
A Conseco Company
Bankers National Variable
Account B
Conseco Series Trust
June 30, 1995
SEMIANNUAL REPORT TO CONTRACT OWNERS
<PAGE>
SEMIANNUAL REPORT TO CONTRACT OWNERS
June 30, 1995
<TABLE>
<CAPTION>
TABLE OF CONTENTS
PAGE
----
<S> <C>
CONSECO CAPITAL MANAGEMENT, INC.
Report from the President .......................................................... 2
Report from the Asset Allocation Portfolio Adviser ................................. 3
Report from the Common Stock Portfolio Adviser ..................................... 4
Report from the Corporate Bond Portfolio Adviser ................................... 5
Report from the Government Securities Portfolio Adviser ............................ 6
Report from the Money Market Portfolio Adviser ..................................... 6
BANKERS NATIONAL VARIABLE ACCOUNT B
Statement of Assets and Liabilities as of June 30, 1995 ............................ 7
Statement of Operations for the Six Months Ended June 30, 1995 and the Year
Ended December 31, 1994 .......................................................... 8
Statement of Changes in Net Assets for the Six Months Ended June 30, 1995 and
the Year Ended December 31, 1994 ................................................. 9
Notes to Financial Statements ...................................................... 10
CONSECO SERIES TRUST
Statement of Assets and Liabilities as of June 30, 1995 ............................ 12
Statement of Operations for the Six Months Ended June 30, 1995 ..................... 13
Statement of Changes in Net Assets for the Six Months Ended June 30, 1995 and
the Year Ended December 31, 1994 ................................................. 14
Statements of Investments in Securities as of June 30, 1995:
Asset Allocation Portfolio ....................................................... 16
Common Stock Portfolio ........................................................... 19
Corporate Bond Portfolio ......................................................... 21
Government Securities Portfolio .................................................. 23
Money Market Portfolio ........................................................... 24
Notes to Financial Statements ...................................................... 25
</TABLE>
<PAGE>
CONSECO CAPITAL MANAGEMENT, INC.
REPORT FROM THE PRESIDENT
Dear Contract Owner:
I am pleased to report the performance of the Conseco Series Trust portfolios
for the Bankers National Variable Account B for the first six months of 1995.
Performance for all portfolios, measured by the percentage change in unit values
for the period, net of all mortality and expense charges, for the six months
ended June 30, 1995 was as follows:
<TABLE>
<CAPTION>
Morningstar
Six months Six months
ended ended
June 30, June 30,
1995 1995(1)
---- -------
<S> <C> <C>
Asset Allocation ......................... 14.82% 12.36%
Common Stock ............................. 15.01% 18.27%
Corporate Bond ........................... 11.18% 10.19%
Government Securities .................... 10.51% 9.77%
Money Market ............................. 2.19% 2.19%
<FN>
(1) Average Accumulation Unit Value Total Return for each respective peer group
from Morningstar Variable Annuity/Life Performance Report through 6/30/95.
</FN>
</TABLE>
Unlike 1994, the first half of 1995 has provided substantial positive
returns for financial assets. The stock market, measured by the Standard &
Poor's 500 and Russell 1000, increased 20.2% and 19.8% respectively through
the first half of the year. Likewise, the bond market, measured by the
Lehman Brothers Aggregate index, increased 11.4% over the same period.
Due in large part to the Federal Reserve's aggressive tightening
throughout 1994, the domestic economy appears to have slowed considerably.
The recent declines in the leading economic indicators and the purchasing
managers production index reinforce this notion. However, the economy
clearly has some life to it as witnessed by strong corporate profitability
and a high level of consumer confidence. Much of the support for the rally
in both markets has resulted from an improving outlook for inflation.
Conseco Capital Management's investment philosophy, which is driven by
a quest to find value in every individual investment we make in every
portfolio, has proven successful over this market cycle. Given our
discipline of independent fundamental research, our portfolios are
structured to weather the increased volatility which currently exists.
Sincerely,
/s/ MAXWELL E. BUBLITZ
----------------------
MAXWELL E. BUBLITZ
President
<PAGE>
REPORT FROM THE ASSET ALLOCATION PORTFOLIO ADVISERS
The Conseco Series Trust Asset Allocation portfolio employs a strategy in
which a mix of fixed income and equity securities are used to produce a high
total return without the volatility typically associated with an equity
fund. The fixed income portion emphasizes securities which earn a high level
of income while the equity portion of the portfolio is managed similarly to
the Common Stock portfolio.
The first six months of 1995 provided excellent returns in both the fixed
income and equity markets. Through this period, the portfolio was generally
weighted 60% towards equity securities and 40% towards fixed income. With
regard to the fixed income portion of the portfolio, we generally have been
investing in lower quality, higher yielding securities such as Union Texas
Petroleum Holdings 8.50% of 04/15/07, GNS Finance Corp 9.25% of 03/15/03,
and Delta Airlines 1988 ETC-B 10.05% due 06/16/05. This provides a solid
level of income to the portfolio with some incremental return potential
through the specific security selection.
The strategic focus of our equity investment process has been and
continues to be a bottom-up research intensive approach. This approach has
led us to identify opportunities in a number of varied market sectors.
During the quarter, we held large positions in companies as diverse as IMC
Global, IBM, Philip Morris, Nokia and Franklin Resources. We continue to
believe these names have unrecognized value.
Going forward, we will continue to look for equity opportunities to build
positions in companies which can have good long term, secular growth
prospects and significant exposure to global markets. Presently, we believe
that many promising opportunities exist in the technology, energy, and basic
industries sectors of the market. This strategy must be executed within the
context of the current market. Since many of the indices are at lofty
levels, we will continue to execute our strategy of slightly increasing our
cash position. Whatever the landscape of the market, we will continue our
process of bottom-up and proprietary approach, which we believe will
identify the best opportunities regardless of market conditions.
/S/ GREGORY J. HAHN /S/ THOMAS J. PENCE
--------------------- ----------------------
Gregory J. Hahn, CFA Thomas J. Pence
Senior Vice President Second Vice President
Portfolio Manager Portfolio Manager
<PAGE>
REPORT FROM THE COMMON STOCK PORTFOLIO ADVISER
During the first half of 1995, technology assumed its rightful place as
the leader of the latest bull market advance. After a year of investor
indecisiveness in the face of a tightening Federal Reserve Board (the "Fed")
policy, the market decided to shrug off concerns about emerging markets,
interest rates and inflation and focus upon core earnings growth in the U.S.
The dollar also played a part, making U.S. assets and earnings cheaper to
the foreign investor. This fact contributed toward the first quarter gains
as blue chips and index futures were the recipients of foreign capital
seeking recognizable and liquid investments.
Over the period, the Standard & Poor's 500 returned 20.25% with the
strongest gains in technology, financials and airlines. Some of the worst
performers over the period included cyclicals, healthcare and interest rate
sensitives.
Our focus over the period was to carefully monitor valuation levels and
to establish larger positions in our best investment opportunities rather
than get caught up in the euphoria of a rising market. As such, our total
number of holdings dropped from 73 to 57. We continued to maintain an above
average exposure to the Technology sector with companies such as Nokia
Corp., Cisco Systems, Network General and Cypress Semiconductor. We also
significantly increased our exposure to financials with the addition of
names such as First Union, General Re Corporation, Franklin Resources, Chubb
and First USA.
Going forward, we do not think we are alone in assuming that the market
is in for a breather. However, our objective will be to protect the gains
achieved in the first half of the year by investing in counter-cyclical
names that should benefit from the Fed's recent action to establish the
ceiling on rate increases. We believe that in the event that the Fed follows
through with another rate reduction, cyclicals look to be a low risk
investment at current levels. Additionally, we expect the market to resume
its rotational characteristics exhibited through much of 1994. Our objective
will be to stay focused on the long term and let short term fluctuations
work in our favor in the form of buying opportunities.
/S/ THOMAS J. PENCE
--------------------
Thomas J. Pence
Second Vice President
Portfolio Manager
<PAGE>
REPORT FROM THE CORPORATE BOND PORTFOLIO ADVISER
Conseco Capital Management adds incremental return to the Corporate Bond
portfolio through purchasing securities which we consider undervalued and
selling securities which we consider overvalued. Thus, we do not make
significant bets on the change in the level of interest rates in the course
of managing the portfolio. Through the first half of 1995, we have managed
the Corporate Bond portfolio to a duration which is consistent with the
overall fixed income market (measured by the Lehman Brothers Aggregate
Index).
As corporate spreads have generally narrowed over the period, we have
moved to increase the overall quality of the portfolio. This has been
accomplished primarily through swapping corporate bonds into U.S. Agency
debt. With the well publicized bankruptcy of Orange County, California,
brokerage debt cheapened considerably early in the first quarter. Yet,
through the first half of the year, brokerage debt has been one of the
better performing sectors. Also, with the return to profitability in the
airline sector, the debt of airline companies, such as Delta Airlines
(Baa3/BB+), has performed well. In addition, there has been a significant
increase in merger activity in the bank sector. We continue to favor
superregional banks over the money center banks and, in spite of the merger
activity, bank debt has performed well.
Although mortgage-backed securities posted respectable returns through
the first half of the year, the sector underperformed others as market
volatility increased and spreads widened.
Looking ahead, we will continue to try to swap up in quality if corporate
spreads remain tight. Also, we will focus on those securities which, because
of the underlying credit fundamentals, structure, or technical
characteristics surrounding the security, have better potential to
outperform the general market.
/S/ GREGORY J. HAHN
---------------------------
Gregory J. Hahn, CFA
Senior Vice President
Portfolio Manager
<PAGE>
REPORT FROM THE GOVERNMENT SECURITIES PORTFOLIO ADVISER
The bond market reversed course in early 1995. After falling in price for
the final two quarters of 1994, the U.S. Treasury market rallied in the
first quarter of 1995 before accelerating to a breakneck pace during the
second quarter. The 30 year U.S. Treasury bond began 1995 yielding 7.88% and
finished at 6.62%. The short end of the Treasury yield curve performed even
better with the yield on the two year U.S. Treasury note falling from 7.69%
to 5.79%. The spread between the two year and 30 year U.S. Treasuries now
stands at 83 basis points ("bps") whereas year-end 1994 saw a spread of just
19 bps.
Although mortgage-backed securities ("MBS") held their own versus U.S.
Treasuries in the first quarter, the magnitude of the drop in rates in the
second quarter and the concurrent spike in volatility caused MBS to suffer.
Spreads between MBS and comparable duration Treasuries gapped wider. For the
first six months of 1995, the Lehman Mortgage Index returned 10.73% while
the Lehman Government Index showed a 11.20% return. Considering that the
mortgage index outperformed the government index by 53 bps in the first
quarter, one can see what a debacle the second quarter was for MBS.
With volatility at such high, unsustainable levels, we feel MBS look
cheap. Option-adjusted spreads on most mortgage products are wider than
during the high prepayment environment of 1993. With new issuance of MBS
much lower than in 1993, technicals also bode well for the mortgage market.
An increase in MBS allocation is warranted.
/S/ JOSEPH F. DEMICHELE
-----------------------
Joseph F. DeMichele
Vice President
Portfolio Manager
REPORT FROM THE MONEY MARKET PORTFOLIO ADVISER
During the first half of 1995, the Federal Reserve Board (the "Fed")
continued with the objective set in 1994 which was a sustained,
non-inflationary growth policy. At the February 1st Federal Open Market
Committee meeting ("FOMC"), the Fed backed up this strategy by again
tightening monetary policy by raising interest rates an additional 50 basis
points to yield a 6.00 percent with the next meeting scheduled for March
28,1995.
However, in late February, Chairman Greenspan began hinting that the
economy was slowing and that lower interest rates might be needed if this
deceleration surpassed expectations. Nevertheless, these comments did not
change the outlook for many economists who still believed another Fed
tightening was inevitable later this year--moving the federal funds rate to
the 7.00 percent level. Greenspan's comments did seem to pave the way for
the addition of a "Soft Landing" objective by the Fed. This soft landing
strategy avoids both inflationary growth and a recession. The next few
months were marked with various conflicting releases of economic data that
left economists with no real solid indication that the economy was moving
steadily in any one particular direction. Then as expected, on March 28 and
May 23, both FOMC meetings adjourned with no announcement signaling no
change in interest rates for the time being.
The objectives of the Money Market Portfolio have not changed. We attempt
to balance safety, liquidity, and current income in managing a fully
diversified portfolio of money market securities. These objectives are met
by investing in United States Government and agency obligations, top-tier
commercial paper and highly rated corporate debt. By June 30th, the
portfolio's average maturity of the total invested assets was 30 days. This
allowed us to lock in yield with the threat of an easing of monetary policy
on the horizon. Furthermore, this average maturity of 30 days satisfies our
liquidity objective as well as allowing us to take advantage of market
inefficiencies and opportunities to improve total return.
/S/ WILLIAM F. FICCA
----------------------
William F. Ficca
Portfolio Manager
<PAGE>
BANKERS NATIONAL VARIABLE
ACCOUNT B
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
(UNAUDITED)
<S> <C>
Assets:
Investments in portfolio shares, at net asset value (Note 2):
Asset Allocation Portfolio, 170,612 shares (cost - $1,962,705) .................................... $ 2,078,231
Common Stock Portfolio, 267,805 shares (cost - $4,392,101) ......................................... 4,949,401
Corporate Bond Portfolio, 1,482 shares (cost - $14,711) ............................................ 14,868
Government Securities Portfolio, 356,390 shares (cost - $4,194,164) ................................ 4,394,964
Money Market Portfolio, 952,687 shares (cost - $952,687) ........................................... 952,687
------------
Total assets ........................................................................... 12,390,151
Liabilities:
Amounts due to Bankers National Life Insurance Company ................................................ 43,475
------------
Net assets (Note 5) .................................................................... $ 12,346,676
============
</TABLE>
<TABLE>
<CAPTION>
Units Unit Value
----- ----------
<S> <C> <C> <C>
Net assets attributable to:
Contract owners' deferred annuity reserves:
Contracts issued prior to August 20, 1984:
Government Securities Portfolio .......................................... 445.3 $ 25.394028 $ 11,307
Money Market Portfolio ................................................... 88.7 17.150836 1,521
Contracts issued on or after August 20, 1984
Asset Allocation Portfolio ............................................... 111,399.2 18.592698 2,071,212
Common Stock Portfolio ................................................... 146,707.5 33.632057 4,934,074
Corporate Bond Portfolio ................................................. 1,319.8 11.230364 14,822
Government Securities Portfolio .......................................... 188,242.1 23.214028 4,369,858
Money Market Portfolio ................................................... 60,118.3 15.700395 943,882
------------
Net assets ......................................................... $ 12,346,676
============
<FN>
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
BANKERS NATIONAL VARIABLE
ACCOUNT B
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1995
and the Year Ended December 31, 1994
Six months Year ended
ended June 30, December 31,
1995 1994
---- ----
(unaudited) (audited)
<S> <C> <C>
Investment income:
Dividends from investments in portfolio shares............................................. $ 298,551 $ 321,420
Expenses:
Mortality and expense risk fees............................................................ 79,956 176,200
---------- ---------
Net investment income................................................................... 218,595 145,220
---------- ---------
Net realized gain (loss) and unrealized appreciation (depreciation) on
investments:
Net realized gain (loss) on sale of investments in portfolio shares........................ 57,803 (30,681)
Net change in unrealized appreciation (depreciation)of investments in portfolio shares..... 1,127,160 (402,007)
---------- ---------
Net gain (loss) on investments in portfolio shares...................................... 1,184,963 (432,688)
---------- ---------
Net increase (decrease) in net assets from operations................................. $1,403,558 $(287,468)
========== =========
<FN>
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
BANKERS NATIONAL VARIABLE
ACCOUNT B
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended
June 30, 1995
and the Year Ended December 31, 1994
Six months Year ended
ended June 30, December 31,
1995 1994
---- ----
(unaudited) (audited)
<S> <C> <C>
Changes from operations:
Net investment income ............................................................... $ 218,595 $ 145,220
Net realized gain (loss) on sale of investments in portfolio shares ................. 57,803 (30,681)
Net change in unrealized appreciation (depreciation) of investments
in portfolio shares ............................................................... 1,127,160 (402,007)
------------ ------------
Net increase (decrease) in net assets from operations .......................... 1,403,558 (287,468)
------------ ------------
Changes from principal transactions:
Net contract purchase payments ...................................................... 31,455 96,152
Contract redemptions ................................................................ (1,327,411) (4,649,673)
Withdrawals by Bankers National Life Insurance Company (Note 3) ..................... -- (2,087,684)
------------ ------------
Net decrease in net assets from principal transactions ......................... (1,295,956) (6,641,205)
------------ ------------
Net increase (decrease) in net assets ...................................... 107,602 (6,928,673)
Net assets, beginning of period ........................................................ 12,239,074 19,167,747
------------ ------------
Net assets, end of period (Note 5) ..................................................... $ 12,346,676 $ 12,239,074
============ ============
<FN>
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
BANKERS NATIONAL VARIABLE
ACCOUNT B
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) GENERAL
Bankers National Variable Account B (the "Account") is registered under the
Investment Company Act of 1940, as amended, as a unit investment trust. The
Account was established on June 8, 1982, as a segregated investment account for
Individual Flexible Purchase Payment Deferred Variable Annuity Contracts issued
by Bankers National Life Insurance Company (the "Company"). The operations of
the Account are included in the operations of the Company pursuant to the
provisions of the Texas Insurance Code. The Company is an indirect wholly owned
subsidiary of Conseco, Inc., a specialized financial services company listed on
the New York Stock Exchange.
The Account invests solely in shares of the portfolios of Conseco Series
Trust (the "Trust"), a diversified, open-end management investment company.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION, TRANSACTIONS AND RELATED INVESTMENT INCOME
Investments are valued using the net asset value of the respective portfolios
of the Trust at the end of each business day of the New York Stock Exchange,
with the exception of regional business holidays. Investment transactions are
accounted for on the valuation date following the trade date (the date the order
to buy or sell is executed). The cost of investments sold is determined on a
specific identification basis. The Account does not hold any investments which
are restricted as to resale.
Net investment income and net realized gain (loss) and unrealized
appreciation (depreciation) on investments are allocated to the contracts on
each valuation date based on each contract's pro rata share of the assets of the
Account as of the beginning of the valuation date.
FEDERAL INCOME TAXES
No provision for federal income taxes has been made in the accompanying
financial statements because the operations of the Account are included in the
total operations of the Company, which is treated as a life insurance company
for federal income tax purposes under the Internal Revenue Code. Net investment
income and realized gains (losses) will be retained in the Account and will not
be taxable until received by the contract owner or beneficiary in the form of
annuity payments or other distributions.
ANNUITY RESERVES
Deferred annuity contract reserves are comprised of net contract purchase
payments less redemptions and benefits. These reserves are adjusted daily for
the net investment income and net realized gain (loss) and unrealized
appreciation (depreciation) on investments.
(3) PURCHASES AND SALES OF INVESTMENTS IN PORTFOLIO SHARES
The aggregate cost of purchases and proceeds from sales of investments in
portfolio shares of the Trust during the six months ended June 30, 1995,
amounted to $653,245 and $1,725,832, respectively.
In 1994, the Company made withdrawals from the portfolios as follows: $381,501
from Money Market, $335,879 from Government Securities, $813,530 from
Common Stock and $556,774 from Asset Allocation.
(4) DEDUCTIONS AND EXPENSES
Although periodic retirement payments to contract owners vary according to
the investment performance of the portfolios of the Trust, such payments are not
affected by expense or mortality experience because the Company assumes the
mortality risk and the expense risk under the contracts.
<PAGE>
The mortality risk assumed by the Company results from the life income option
in the contracts in which the Company agrees to make annuity payments regardless
of how long a particular annuitant or other payee lives. The annuity payments
are determined in accordance with annuity purchase rate provisions established
at the time the contracts are issued. Based on the actuarial determination of
expected mortality, the Company is required to fund any deficiency in the
annuity payment reserves from its general account assets.
The expense risk assumed by the Company is the risk that the deductions for
contract administrative charges and transfer processing fees may prove
insufficient to cover the actual administrative and transfer processing
expenses.
These contracts also provide for an amount payable upon the death of an
annuitant during the accumulation period equal to the greater of (a) the
aggregate purchase payments reduced by any partial surrenders or (b) the value
of the contract as of the date of death.
The Company deducts daily from the Account a fee, which is equal on an annual
basis to 1.25 percent (0.75 percent for those contracts issued prior to August
20, 1984) of the daily value of the total investments of the Account, for
assuming the mortality and expense risks. These fees aggregated $79,956 and
$176,200 for the six months ended June 30, 1995 and the year ended December 31,
1994, respectively.
The Company does not deduct a sales charge from purchase payments received on
contracts issued after August 20, 1984. However, upon surrender, the Company,
with certain exceptions, deducts from the contract value a contingent deferred
sales charge equal to the lesser of (a) 5.0 percent of the total of all purchase
payments made within 72 months prior to the date of the request for surrender or
(b) 5.0 percent of the amount surrendered. No charge is made for such part of a
surrender in a contract year that does not exceed 10.0 percent of the net sum of
purchase payments made more than one year prior to the date of the surrender.
Purchase payments received on contracts issued before August 20, 1984 are
charged 6.5 percent by the Company to cover sales expenses. Sales charges
aggregated $2,140 and $8,104 for the six months ended June 30, 1995 and the year
ended December 31, 1994, respectively.
An annual contract administrative charge of $30 ($12 on Individual Retirement
Accounts or "IRAs") on contracts issued after August 20, 1984 and $36 ($12 on
IRAs) on contracts issued prior to August 20, 1984 is deducted in units from
each contract owner's account. Such charges aggregated $6,842 and $17,167 for
the six months ended June 30, 1995 and the year ended December 31, 1994,
respectively.
A transfer processing fee (currently at $5 and guaranteed not to exceed $15)
for each transfer between portfolios is deducted from the amount transferred.
These fees aggregated $20 and $85 for the six months ended June 30, 1995 and the
year ended December 31, 1994, respectively.
(5) NET ASSETS
Net assets consisted of the following at June 30, 1995:
<TABLE>
<S> <C>
Proceeds from sales of units since organization,
less cost of units redeemed ......................... $ (7,577,880)
Undistributed net investment income .................... 18,257,711
Undistributed net realized gains on sales of investments 793,061
Net unrealized appreciation of investments ............. 873,784
------------
Net assets ....................................... $ 12,346,676
============
</TABLE>
<PAGE>
CONSECO SERIES TRUST
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
(UNAUDITED)
Asset Common Corporate Government Money
Allocation Stock Bond Securities Market
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in securities
(cost-$6,488,612; $72,161,318;
$12,978,846; $4,308,214;
and $4,358,910; respectively) $ 7,125,971 $82,598,388 $13,187,165 $ 4,511,258 $ 4,358,910
Cash ........................... 230,455 3,361,540 1,084,470 1,087,269 532,346
Accrued interest and dividends . 81,856 156,277 282,176 69,965 1,232
Receivable for securities sold . 352,189 5,025,720 408,338 912,193 --
Receivable for shares sold ..... 40,199 205,228 25,891 -- 14,784
----------- ----------- ----------- ----------- -----------
Total assets .............. 7,830,670 91,347,153 14,988,040 6,580,685 4,907,272
----------- ----------- ----------- ----------- -----------
Liabilities:
Accrued expenses ............... 4,604 58,172 8,368 2,812 1,803
Payable for securities purchased 313,813 1,922,819 329,236 1,729,666 --
Payable for shares redeemed .... -- -- 5,590 18,588 --
----------- ----------- ----------- ----------- -----------
Total liabilities ......... 318,417 1,980,991 343,194 1,751,066 1,803
----------- ----------- ----------- ----------- -----------
Net assets (Note 5) ....... $ 7,512,253 $89,366,162 $14,644,846 $ 4,829,619 $ 4,905,469
=========== =========== =========== =========== ===========
Shares outstanding (unlimited
number of shares authorized) ... 616,717 4,835,477 1,458,974 391,636 4,905,469
Net asset value, offering and
redemption price per share .... $ 12.18 $ 18.48 $ 10.04 $ 12.33 $ 1.00
----------- ----------- ----------- ----------- -----------
<FN>
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1995
(UNAUDITED)
Asset Common Corporate Government Money
Allocation Stock Bond Securities Market
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Investment income:
Dividends ........................... $ 38,689 $ 784,278 $ -- $ -- $ --
Interest ............................ 125,859 177,292 535,826 170,881 151,440
------------ ------------ ------------ ------------ ----------
Total investment income ......... 164,548 961,570 535,826 170,881 151,440
------------ ------------ ------------ ------------ ----------
Expenses:
Investment advisory fees ............ 18,512 242,835 34,007 11,807 6,259
Custodial fees ...................... 3,110 35,265 6,567 2,473 2,343
Administrative expenses ............. 163 309 179 160 160
Legal and filing fees ............... 3,647 454 1,636 1,216 1,876
Printing fees ....................... 1,287 14,591 2,717 1,023 970
Other ............................... 4,379 28,862 7,013 3,895 1,784
------------ ------------ ------------ ------------ ----------
Total expenses .................. 31,098 322,316 52,119 20,574 13,392
Less: reimbursement by
the Adviser (Note 3) .............. 5,854 (1,464) 4,509 4,044 2,126
Net expenses .................. 25,244 323,780 47,610 16,530 11,266
------------ ------------ ------------ ------------ ----------
Net investment income ......... 139,304 637,790 488,216 154,351 140,174
------------ ------------ ------------ ------------ ----------
Net realized gain on sale
of investments ...................... 233,806 5,014,031 129,850 94,733 --
------------ ------------ ------------ ------------ ----------
Unrealized appreciation (depreciation)
of investments:
Beginning of period ............... 33,318 4,174,477 (711,570) (52,491) --
End of period ..................... 637,359 10,437,070 208,319 203,044 --
------------ ------------ ------------ ------------ ----------
Net change in unrealized
appreciation of investments ... 604,041 6,262,593 919,889 255,535 --
------------ ------------ ------------ ------------ ----------
Net realized and unrealized
gain on investments ......... 837,847 11,276,624 1,049,739 350,268 --
------------ ------------ ------------ ------------ ----------
Net increase in net assets
from operations ............. $ 977,151 $ 11,914,414 $ 1,537,955 $ 504,619 $ 140,174
============ ============ ============ ============ ==========
<FN>
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1995
and the Year Ended December 31, 1994
<TABLE>
<CAPTION>
ASSET ALLOCATION COMMON STOCK
PORTFOLIO PORTFOLIO
-------------------------- ----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1995 1994 1995 1994
---- ---- ---- ----
(UNAUDITED) (AUDITED) (UNAUDITED) (AUDITED)
<S> <C> <C> <C> <C>
Changes from operations:
Net investment income .................................. $ 139,304 $ 270,931 $ 637,790 $ 1,024,867
Net realized gain (loss) on sale of investments ........ 233,806 (116,597) 5,014,031 913,112
Net change in unrealized appreciation
(depreciation) of investments ........................ 604,041 (209,775) 6,262,593 (437,837)
----------- ----------- ------------ ------------
Net increase (decrease) in
net assets from operations ...................... 977,151 (55,441) 11,914,414 1,500,142
Net income equalization (Note 2) ......................... (3,818) 3,309 (35,391) (189,980)
----------- ----------- ------------ ------------
Dividends to shareholders from net
investment income ...................................... (327,009) (140,625) (3,041,947) (627,654)
----------- ----------- ------------ ------------
Distributions to shareholders of net realized
capital gains .......................................... -- (18,117) -- (577,489)
----------- ----------- ------------ ------------
Capital share transactions:
Net proceeds from sale of shares ....................... 884,703 2,270,083 4,817,114 10,531,683
Net asset value of shares issued to shareholders
from reinvestment of dividends ....................... 330,827 155,433 3,077,338 1,395,123
Cost of shares redeemed ................................ (521,991) (2,204,176) (2,125,094) (4,071,921)
----------- ----------- ------------ ------------
Net increase (decrease) in net assets from
capital share transactions ......................... 693,539 221,340 5,769,358 7,854,885
----------- ----------- ------------ ------------
Net increase (decrease) in net assets ................ 1,339,863 10,466 14,606,434 7,959,904
Net assets, beginning of period .......................... 6,172,390 6,161,924 74,759,728 66,799,824
----------- ----------- ------------ ------------
Net assets, end of period (Note 5) ....................... $ 7,512,253 $ 6,172,390 $ 89,366,162 $ 74,759,728
=========== =========== ============ ============
Share data:
Shares sold ........................................... 74,487 203,375 271,468 645,373
Shares issued to shareholders from
reinvestment of dividends ........................... 27,419 15,862 166,510 121,947
Shares redeemed ....................................... (44,033) (200,819) (121,264) (250,071)
------- -------- -------- --------
Net increase (decrease) in number
of shares outstanding ............................. 57,873 18,418 316,714 517,249
======= ======== ======== ========
(Continued on following page)
<FN>
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (Continued)
For the Six Months Ended June 30, 1995
and the Year Ended December 31, 1994
<TABLE>
<CAPTION>
CORPORATE BOND GOVERNMENT MONEY MARKET
PORTFOLIO SECURITIES PORTFOLIO PORTFOLIO
-------------------------- ------------------------- -------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
(UNAUDITED) (AUDITED) (UNAUDITED) (AUDITED) (UNAUDITED) (AUDITED)
<S> <C> <C> <C> <C> <C> <C>
Changes from operations:
Net investment income ................ $ 488,216 $ 882,258 $ 154,351 $ 384,464 $ 140,174 $ 188,492
Net realized gain (loss)on
sale of investment ................. 129,850 (593,357) 94,733 (544,871) -- --
Net change in unrealized
appreciation (depreciation)
of investments ..................... 919,889 (667,763) 255,535 (47,147) -- --
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in
net assets from operations ..... 1,537,955 (378,862) 504,619 (207,554) 140,174 188,492
Net income equalization (Note 2) ....... (1,799) 5,783 31,227 68,488 -- --
------------ ------------ ----------- ----------- ----------- -----------
Dividends to shareholders from net
investment income .................... (720,798) (368,156) (31,227) (94,576) (140,174) (188,492)
------------ ------------ ----------- ----------- ----------- -----------
Distributions to shareholders of net
realized capital gains ............... -- -- -- -- -- --
------------ ------------ ----------- ----------- ----------- -----------
Capital share transactions:
Net proceeds from sale of shares ..... 810,767 1,465,435 314,657 164,019 532,004 1,883,108
Net asset value of shares issued
to shareholders from
reinvestment of dividends .......... 722,597 362,373 -- 26,088 140,174 188,492
Cost of shares redeemed .............. (606,939) (1,760,950) (702,442) (2,823,046) (872,076) (2,195,874)
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in
net assets from capital
share transactions ............... 926,425 66,858 (387,785) (2,632,939) (199,898) (124,274)
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in
net assets ....................... 1,741,783 (674,377) 116,834 (2,866,581) (199,898) (124,274)
Net assets, beginning of period ........ 12,903,063 13,577,440 4,712,785 7,579,366 5,105,367 5,229,641
------------ ------------ ----------- ----------- ----------- -----------
Net assets, end of period .............. $ 14,644,846 $ 12,903,063 $ 4,829,619 $ 4,712,785 $ 4,905,469 $ 5,105,367
============ ============ =========== =========== =========== ===========
Share data:
Shares sold .......................... 82,455 152,017 26,512 14,714 532,004 1,883,108
Shares issued to shareholders
from reinvestment of dividends ..... 72,946 37,376 -- 2,260 140,174 188,492
Shares redeemed ...................... (62,482) (183,354) (59,948) (253,588) (872,076) (2,195,874)
------- -------- ------- -------- -------- ----------
Net increase (decrease) in
number of shares outstanding ..... 92,919 6,039 (33,436) (236,614) (199,898) (124,274)
======= ======== ======= ======== ======== ==========
<FN>
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
ASSET ALLOCATION PORTFOLIO
STATEMENT OF INVESTMENTS IN SECURITIES
June 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
<S> <C> <C>
COMMON STOCKS
(60.07% of total investments) (a)
AIR TRANSPORT (0.48%)
200 SkyWest, Inc....................... $ 4,525
2,550 U.S. Air Group (b)................. 29,644
---------
34,169
---------
ALUMINUM (0.68%)
1,600 Alcan Aluminum Limited............. 48,400
---------
AUTO PARTS/EQUIPMENT (1.11%)
4,620 Miller Industries, Inc. (b)........ 79,117
---------
BANKING (1.71%)
2,700 First Union Corporation............ 122,175
---------
BROADCASTING (1.44%)
2,209 Viacom, Inc., Class B (b).......... 102,442
---------
CHEMICALS (2.68%)
3,530 IMC Global, Inc.................... 191,061
---------
CONTAINERS (0.62%)
1,250 Federal Paper Board................ 44,219
---------
DATA PROCESSING (4.25%)
2,720 Cisco Systems, Inc. (b)............ 137,529
5,600 IKOS Systems, Inc. (b)............. 51,100
4,200 Network General Corporation (b).... 114,450
---------
303,079
---------
ELECTRONICS/ELECTRIC (8.58%)
2,500 California Microwave (b)........... $ 62,655
1,800 Cypress Semiconductor Corporation(b) 72,900
1,400 Dovatron International, Inc. (b)... 34,300
1,600 Exar Corporation (b)............... 47,200
6,993 Genus, Inc. (b).................... 94,839
2,100 Intergrated Device Tech, Inc. (b).. 97,125
1,500 KLA Instruments Corporation (b).... 115,875
5,000 Mentor Graphics Corporation (b).... 86,250
---------
611,144
---------
FILMED ENTERTAINMENT (0.81%)
2,200 British Sky Broadcasting (ADR)(b).. 57,475
---------
FINANCE (1.03%)
3,600 Comdata Holdings Corporation (b)... 55,350
400 First USA, Inc..................... 17,750
---------
73,100
---------
HEALTH CARE CENTERS (3.39%)
1,800 Orthodontic Centers of America (b). 43,650
2,120 Ren Corporation (b)................ 33,655
3,350 Renal Treatment Centers, Inc. (b).. 82,494
5,176 Sun Healthcare Group, Inc. (b)..... 81,522
---------
241,321
---------
HOME FURNISHINGS (0.84%)
1,200 Armstrong World Industries......... 60,150
---------
(Continued)
</TABLE>
<PAGE>
CONSECO SERIES TRUST
ASSET ALLOCATION PORTFOLIO
STATEMENT OF INVESTMENTS IN SECURITIES - (Continued)
June 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
<S> <C> <C>
INSURANCE (6.67%)
1,160 American Reinsurance (b)........... $ 43,210
1,950 Chubb Corporation.................. 156,244
970 General Re Corporation............. 129,859
2,800 Healthsource, Inc. (b)............. 98,000
1,100 Lincoln National Corporation....... 48,125
---------
475,438
---------
MUTUAL FUND (1.62%)
2,600 Franklin Resources, Inc............ 115,700
---------
OIL AND GAS (8.69%)
2,670 Apache Corporation................. 73,091
1,925 Louisiana Land &
Exploration Company................ 76,759
10,800 Noble Drilling Corporation (b)..... 79,650
2,360 Occidental Petroleum............... 53,985
2,100 Petroleum Geo-Services (ADR) (b)... 60,375
1,465 Texaco, Inc........................ 96,141
2,115 Tosco Corporation.................. 67,416
2,655 Ultramar Corporation............... 67,039
2,140 Union Texas Petroleum Holdings, Inc. 45,207
---------
619,663
---------
PUBLISHING (1.55%)
1,200 Time Warner, Inc................... 49,350
800 Times Mirror Company............... 19,100
2,500 Valassis Communications, Inc., (b). 41,875
---------
110,325
---------
RAIL EQUIPMENT (0.26%)
800 ABC Rail Products Corporation (b).. $ 18,400
---------
RETAIL STORES (2.24%)
3,200 American Eagle Outfitters (b)...... 50,400
2,675 Proffitt's, Inc. (b)............... 79,581
2,360 Sport Supply Group, Inc............ 29,500
---------
159,481
---------
SERVICES (1.71%)
3,200 AccuStaff, Inc. (b)................ 70,400
5,100 Employee Solutions, Inc. (b)....... 51,638
---------
122,038
---------
TELECOMMUNICATIONS (6.71%)
5,110 Brite Voice Systems, Inc. (b)...... 93,257
1,000 DSP Communications, Inc. (b)....... 20,750
4,350 Network Equipment Tech., Inc. (b).. 103,312
4,370 Nokia Corporation (ADR) (b)........ 260,561
---------
477,880
---------
TOBACCO (1.67%)
1,600 Philip Morris Companies, Inc....... 119,000
---------
UTILITIES GAS (1.33%)
3,130 The Coastal Corporation............ 95,074
---------
TOTAL COMMON STOCKS
(COST $3,745,090).................. 4,280,851
---------
(Continued)
</TABLE>
<PAGE>
CONSECO SERIES TRUST
ASSET ALLOCATION PORTFOLIO
STATEMENT OF INVESTMENTS IN SECURITIES - (Continued)
June 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
--------- -------- -----
<S> <C> <C>
CORPORATE BONDS
(39.93% of total investments)(a)
AIR TRANSPORT (1.61%)
$100,000 Delta Airlines 1988 ETC-B,
10.050%, due 10/16/2005 $ 114,750
-----------
BANKING (4.05%)
200,000 Anchor Bancorp,
8.938%, due 07/09/2003............. 200,750
100,000 Bankers Trust Company,
6.000%, due 10/15/2008............. 88,000
-----------
288,750
-----------
BROADCASTING (2.74%)
200,000 Viacom International, Inc.,
8.000%, due 07/07/2006............. 195,000
-----------
FINANCE (2.95%)
100,000 Countrywide Funding-MTN,
7.750%, due 08/10/2001............. 104,750
100,000 GNS Finance Corp.,
9.250%, due 03/15/2003............. 105,125
-----------
209,875
-----------
MINING/DIVERSIFIED (1.54%)
100,000 Inco Ltd., 9.600%, due 06/15/2022.. 109,500
-----------
OIL AND GAS (4.32%)
100,000 Lyondell Petrochemical Company,
8.250%, due 03/15/1997............. 102,125
200,000 Union Texas Petroleum Holdings,
8.500%, due 04/07/2015............. 205,500
-----------
307,625
-----------
PUBLISHING (3.32%)
200,000 News America Holdings,
9.500%, due 07/15/2024............. 235,250
-----------
PAPER/PRODUCTS (1.50%)
100,000 Westvaco Corporation,
10.300%, due 01/15/2019............ $ 107,250
-----------
SECURITIES (1.51%)
100,000 Lehman Brothers Holdings, Inc.,
8.800%, due 03/01/2015............. 108,250
-----------
TEXTILES (2.79%)
200,000 Guess?, Inc.,
9.500%, due 08/15/2003............. 199,000
-----------
TOBACCO (1.43%)
100,000 RJR Nabisco, Inc.,
9.250%, due 08/15/2013............. 101,750
-----------
UTILITIES ELECTRIC (3.53%)
200,000 Commonwealth Edison Co.,
9.170%, due 10/15/2002............. 222,250
29,000 System Energy Resources, Inc.,
11.375%, due 09/01/2016............ 29,290
-----------
251,540
-----------
UTILITIES DIVERSIFIED (8.64%)
100,000 Hero Asia (BVI) Company Limited,
9.110%, due 10/15/2001 (144A)...... 101,830
100,000 Hydro Quebec,
8.050%, due 07/07/2024............. 108,875
100,000 Long Island Lighting,
7.125%, due 06/01/2005............. 89,625
200,000 Niagara Mohawk Power,
9.500%, due 06/01/2000............. 218,000
100,000 Northern Indiana Public Service
Company, 7.420%, due 01/08/2024.... 98,250
-----------
616,580
-----------
TOTAL CORPORATE BONDS
(COST $2,743,522) ................. 2,845,120
-----------
TOTAL INVESTMENTS IN
SECURITIES (COST $6,488,612) (c)... $ 7,125,971
===========
<FN>
(a) Using Standard & Poor's industry classifications.
(b) Non-dividend paying common stock.
(c) Cost also represents cost for federal income tax purposes.
The accompanying notes are an integral part of these financial
statements.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
<TABLE>
<CAPTION>
COMMON STOCK PORTFOLIO
STATEMENT OF INVESTMENTS IN SECURITIES
June 30, 1995
(UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
<S> <C> <C>
COMMON STOCKS
(100.00 % of total investments) (a)
AIR TRANSPORT (0.69%)
3,900 SkyWest, Inc....................... $ 88,238
41,250 U.S. Air Group (b)................. 479,531
----------
567,769
----------
ALUMINUM (1.14%)
31,200 Alcan Aluminum Limited............. 943,800
----------
AUTO PARTS/EQUIPMENT (1.72%)
82,940 Miller Industries, Inc.(b)......... 1,420,347
----------
BANKING (2.74%)
49,950 First Union Corporation............ 2,260,238
----------
BROADCASTING (2.44%)
43,464 Viacom, Inc., Class B (b).......... 2,015,643
----------
CHEMICALS (4.19%)
63,900 Imc Global, Inc.................... 3,458,588
----------
CONTAINERS (1.07%)
25,000 Federal Paper Board................ 884,375
----------
DATA PROCESSING (7.23%)
54,600 Cisco Systems, Inc. (b)............ 2,760,685
109,300 IKOS Systems, Inc. (b)............. 997,362
81,300 Network General Corporation (b).... 2,215,425
----------
5,973,472
----------
ELECTRONICS/ELECTRIC (14.38%)
48,750 California Microwave (b)........... $ 1,221,772
35,200 Cypress Semiconductor
Corporation (b).................... 1,425,600
28,100 Dovatron International, Inc. (b)... 688,450
31,200 Exar Corporation (b) .............. 920,400
136,200 Genus, Inc. (b).................... 1,847,144
40,900 Integrated Device Tech, Inc. (b)... 1,891,625
28,500 KLA Instruments Corporation (b).... 2,201,625
97,500 Mentor Graphics Corporation (b).... 1,681,875
----------
11,878,491
----------
FILMED ENTERTAINMENT (1.36%).......
42,900 British Sky Broadcasting (ADR)(b).. 1,120,763
----------
FINANCE (1.73%)
70,600 Comdata Holdings Corporation (b) .. 1,085,475
7,800 First Usa, Inc..................... 346,125
----------
1,431,600
----------
HEALTH CARE CENTERS (6.00%)
35,100 Orthodontic Centers of America (b). 851,175
45,340 Ren Corporation (b)................ 719,773
72,800 Renal Treatment Centers, Inc. (b).. 1,792,700
100,772 Sun Healthcare Group, Inc. (b)..... 1,587,159
----------
4,950,807
----------
HOME FURNISHINGS (1.42%)
23,400 Armstrong World Industries......... 1,172,925
----------
(Continued)
</TABLE>
<PAGE>
CONSECO SERIES TRUST
<TABLE>
<CAPTION>
COMMON STOCK PORTFOLIO
STATEMENT OF INVESTMENTS IN SECURITIES - (Continued)
June 30, 1995
(UNAUDITED)
NUMBER
OF SHARES SECURITY VALUE
--------- -------- -----
<S> <C> <C>
INSURANCE (10.74%)
20,710 American Reinsurance (b)........... $ 771,447
36,850 Chubb Corporation.................. 2,952,606
18,890 General Re Corporation............. 2,528,899
54,600 Healthsource, Inc. (b)............. 1,911,000
16,100 Lincoln National Corporation....... 704,375
-----------
8,868,327
-----------
MUTUAL FUND (2.68%)
49,800 Franklin Resources, Inc............ 2,216,100
-----------
OIL AND GAS (14.48%)
53,250 Apache Corporation ................ 1,457,719
29,680 Louisiana Land &
Exploration Company ............... 1,183,490
210,600 Noble Drilling Corporation (b)..... 1,553,175
48,235 Occidental Petroleum............... 1,103,376
40,800 Petroleum Geo-Services (ADR) (b) .. 1,173,000
29,010 Texaco, Inc. ...................... 1,903,781
40,630 Tosco Corporation.................. 1,295,081
55,220 Ultramar Corporation .............. 1,394,305
42,520 Union Texas Petroleum Holdings, Inc. 898,235
-----------
11,962,162
-----------
PUBLISHING (2.69%)
22,800 Time Warner, Inc................... 937,650
15,600 Times Mirror Company............... 372,450
54,520 Valassis Communications, Inc. (b).. 913,210
-----------
2,223,310
-----------
RAIL EQUIPMENT (0.43%)
15,600 ABC Rail Products Corporation(b)... $ 358,800
-----------
RETAIL STORES (3.56%)
50,100 American Eagle Outfitters (b)...... 789,075
53,675 Proffitt's, Inc. (b) .............. 1,596,831
44,270 Sport Supply Group, Inc. .......... 553,375
-----------
2,939,281
-----------
SERVICES (2.89%)
62,400 AccuStaff, Inc. (b)................ 1,372,800
100,300 Employee Solutions, Inc. (b)....... 1,015,537
-----------
2,388,337
-----------
TELECOMMUNICATIONS (11.15%)
117,230 Brite Voice Systems, Inc. (b)...... 2,139,448
19,500 DSP Communications, Inc. .......... 404,625
83,250 Network Equipment Tech, Inc. (b)... 1,977,187
78,630 Nokia Corporation (ADR) (b)........ 4,688,314
-----------
9,209,574
-----------
TOBACCO (2.99%)
33,175 Philip Morris Companies, Inc....... 2,467,391
-----------
UTILITIES GAS (2.28%)
62,100 The Coastal Corporation............ 1,886,288
-----------
TOTAL COMMON STOCKS
(COST $72,161,318)(c).............. $82,598,388
===========
<FN>
(a) Using Standard & Poor's industry classifications.
(b) Non-dividend paying common stock.
(c) Cost also represents cost for federal income tax purposes.
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
<TABLE>
<CAPTION>
CORPORATE BOND PORTFOLIO
STATEMENT OF INVESTMENTS IN SECURITIES
June 30, 1995
(UNAUDITED)
PRINCIPAL
AMOUNT SECURITY VALUE
------ -------- -----
<S> <C> <C>
CORPORATE BONDS
(81.70% of total investments) (a)
AIR TRANSPORT (3.61%)
$ 200,000 Delta Airlines 1988 ETC-B,
10.050%, due 06/16/2005............ $ 229,500
187,764 Delta Airlines 1992,
8.540%, due 01/02/2007 ............ 197,856
46,941 Delta Airlines 1992,
8.540%, due 01/02/2007............. 48,760
---------
476,116
---------
AEROSPACE (1.81%)
200,000 McDonnell Douglas Corporation,
9.750%, due 04/01/2012............. 238,000
---------
BANKING (16.89%)
300,000 Banc One Arizona,
6.000%, due 09/15/2005............. 283,875
100,000 Bankers Trust Company,
7.125%, due 07/31/2002............. 100,500
200,000 Bankers Trust Company,
6.000%, due 10/15/2008............. 176,000
250,000 Dime Bancorp, Inc.,
10.500%, due 11/15/2005............ 270,313
300,000 First Bank National Association,
6.250%, due 08/15/2005............. 294,000
250,000 First Union Corp.,
6.000%, due 10/30/2008 ............ 226,875
200,000 First USA Bank,
7.650%, due 08/01/2003............. 201,302
200,000 National City Corporation,
7.200%, due 05/15/2005............. 204,250
250,000 PNC Bank, 7.875%, due 04/15/2005... 266,563
200,000 Society National Bank,
7.250%, due 06/01/2005............. 203,500
---------
2,227,178
---------
BUILDING (1.97%)
250,000 Scotia Pacific Holding Co.,
7.950%, due 07/20/2015............. 260,625
---------
CONTAINERS (2.26%)
300,000 Stone Container,
9.875%, due 02/01/2001............. 298,500
---------
FINANCE (7.59%)
250,000 CIT Group Holdings, Inc.,
7.000%, due 09/30/1997............. 254,062
250,000 Ford Capital BV.,
9.000%, due 08/15/1998............. 268,750
250,000 GNS Finance Corp.,
9.250%, due 03/15/2003............. 262,813
200,000 Green Tree Financial Corp.
1994-4 A5, 8.300%, due 07/15/2019.. 215,094
---------
1,000,719
---------
INSURANCE (5.18%)
250,000 American Reinsurance,
10.875%, due 09/15/2004 ........... 277,187
400,000 USF&G Corp., 7.000%, due 05/15/1998 405,500
---------
682,687
---------
MINING/DIVERSIFIED (0.88%)
100,000 Cyprus Minerals Company,
10.125%, due 04/01/2002 116,125
---------
OIL AND GAS (3.99%)
100,000 Lyondell Petrochemical Company,
8.250%, due 03/15/1997............. 102,125
400,000 Parker & Parsley Petroleum,
8.875%, due 04/01/2022............. 424,000
---------
526,125
---------
PAPER/PRODUCTS (1.62%)
200,000 Westvaco Corporation,
10.300%, due 01/15/2019............ 214,500
---------
PUBLISHING (3.57%)
400,000 News America Holdings,
9.500%, due 07/15/2024............. 470,500
---------
RETAIL STORES (7.31%)
250,000 K Mart Corporation-MTN,
8.000%, due 12/13/2001 ............ 257,500
500,000 Price Co., 6.750%, due 03/01/2001.. 500,000
200,000 Wal-mart Stores,
10.875%, due 08/15/2000............ 206,250
---------
963,750
---------
(Continued)
</TABLE>
<PAGE>
CONSECO SERIES TRUST
<TABLE>
<CAPTION>
CORPORATE BOND PORTFOLIO
STATEMENT OF INVESTMENTS IN SECURITIES (Continued)
June 30, 1995
(UNAUDITED)
PRINCIPAL
AMOUNT SECURITY VALUE
------ -------- -----
<S> <C> <C>
SECURITIES (5.57%)
$ 250,000 Lehman Brothers Holdings, Inc.,
8.800%, due 03/01/2015............. $ 270,625
250,000 Paine Webber Group, Inc.,
6.500%, due 11/01/2005 ............ 227,188
250,000 Salomon, Inc.,
6.750%, due 08/15/2003 ............ 236,875
-----------
734,688
-----------
TEXTILES (1.89%)
250,000 Guess?, Inc.,
9.500%, due 08/15/2003............. 248,750
-----------
TOBACCO (1.93%)
250,000 RJR Nabisco, Inc.,
9.250%, due 08/15/2013............. 254,375
-----------
UTILITIES ELECTRIC (5.24%)
200,000 Commonwealth Edison Co.,
9.170%, due 10/15/2002............. 222,250
350,000 Detroit Edison Co.- MTN,
7.200%, due 08/01/2002............. 360,500
100,000 Texas Utilities Electric Company,
10.625%, due 09/01/2020 ........... 108,625
-----------
691,375
-----------
UTILITIES GAS (6.74%)
300,000 The Coastal Corporation,
10.000%, due 02/01/2001............ 340,500
250,000 Seagull Energy Corp.,
8.625%, due 08/01/2005 ............ 242,188
100,000 Southern California Gas Co.,
9.750%, due 12/01/2020............. 107,625
200,000 Southern Union Company,
7.600%, due 02/01/2024 ............ 198,000
-----------
888,313
-----------
UTILITIES DIVERSIFIED (3.65%)
200,000 Niagara Mohawk Power,
9.500%, due 06/01/2000 ............ 218,000
250,000 Philadelphia Electric Co.,
8.750%, due 04/01/2022 ............ 263,125
-----------
481,125
-----------
TOTAL CORPORATE BONDS
(COST $10,558,392) ................ 10,773,451
-----------
U.S. GOVERNMENT
AND AGENCY OBLIGATIONS
(18.30% of total investments)
$ 300,000 Federal Farm Credit Banks-MTN,
7.440%, due 04/07/1998............. $ 304,713
393,779 Federal Home Loan Banks,
5.375%, due 03/25/1999 ............ 380,914
250,000 Federal Home Loan Mortgage Corp.,
6.500%, due 06/08/2000............. 250,295
251,362 Federal Home Loan Mortgage Corp.,
#D51789, 7.000%, due 04/01/2024.... 247,316
49,431 Federal National Mortgage Assn.,
#062289, 5.697%, due 03/01/2028.... 50,420
293,665 Federal National Mortgage Assn.,
#183567, 7.500%, due 11/01/2022.... 294,766
247,447 Federal National Mortgage Assn.,
#286122, 7.000%, due 06/01/2024.... 243,387
3,666 Government National Mortgage Assn.,
#051699, 15.000%, due 07/15/2011... 4,216
3,362 Government National Mortgage Assn.,
#056522, 14.000%, due 08/15/2012... 3,782
126,972 Government National Mortgage Assn.,
#180604, 9.000%, due 11/15/2016.... 133,400
500,000 U.S. Treasury Note,
6.000%, due 10/15/1999 ............ 500,505
-----------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(COST $2,420,454).................. 2,413,714
-----------
TOTAL INVESTMENTS
IN SECURITIES
(COST $12,978,846) (b)............. $13,187,165
===========
<FN>
(a) Using Standard & Poor's industry classifications.
(b) Cost also represents cost for federal income tax purposes.
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF INVESTMENTS IN SECURITIES
June 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE
------ -------- -----
<S> <C> <C>
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(83.65% of total investments)
$ 500,000 Federal National Mortgage Assn.,
15 yr TBA, 7.500%, due 01/01/2010.. $ 508,281
300,000 Federal National Mortgage Assn.,
30 yr TBA, 8.000%, due 01/01/2025.. 305,719
1,591 Government National Mortgage Assn.,
#044522, 13.000%, due 03/15/2011... 1,844
8,560 Government National Mortgage Assn.,
#068651, 12.000%, due 08/15/2013... 9,652
14,169 Government National Mortgage Assn.,
#105200, 13.000%, due 10/15/2013... 16,418
7,260 Government National Mortgage Assn.,
#119896, 13.000%, due 11/15/2014... 8,412
488,883 Government National Mortgage Assn.,
Dollar Roll, 8.000%, due 08/15/2024 500,799
100,000 U.S. Treasury Note,
5.125%, due 06/30/1998............. 97,902
250,000 U.S. Treasury Note,
8.250%, due 07/15/1998............. 266,020
200,000 U.S. Treasury Note,
7.750%, due 11/30/1999............. 213,364
260,000 U.S. Treasury Note,
7.750%, due 01/31/2000............. 277,852
375,000 U.S. Treasury Note,
5.875%, due 02/15/2004............. 366,195
550,000 U.S. Treasury Note,
7.250%, due 08/15/2004............. 588,126
550,000 U.S. Treasury Note,
7.875%, due 11/15/2004............. 612,997
-----------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(COST $3,594,254).................. 3,773,581
-----------
COLLATERALIZED
MORTGAGE OBLIGATIONS
(16.35% of total investments)
250,000 American Express Master Trust,
93 1 A, 5.375%, due 07/15/2001.... 238,825
489,371 Federal Home Loan Mortgage Corp.,
#C80306, 8.000%, due 04/01/2025.... 498,852
-----------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $713,960).................... 737,677
-----------
TOTAL INVESTMENTS IN
SECURITIES (COST $4,308,214) (a)... $ 4,511,258
===========
<FN>
(a) Cost also represents cost for federal income tax purposes.
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS IN SECURITIES
June 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY VALUE(b)
------ -------- --------
<S> <C> <C>
COMMERCIAL PAPER
(88.94% of total investments) (a)
BANKING (5.62%)
$ 245,000 Banc One Corporation, Inc.,
6.030%, due 07/07/95............... $ 244,754
----------
ELECTRONICS/ELECTRIC (9.36%)
170,000 Emerson Electronic Company, Inc.,
5.980%, due 7/10/1995.............. 169,746
240,000 Motorola, Inc.,
5.830%, due 08/18/1995............. 238,134
----------
407,880
----------
FINANCE (5.57%)
245,000 National Rural Utilities Coop
Finance Co., 5.900%, due 08/24/1995 242,832
----------
FOOD (5.59%)
245,000 Heinz (H.J.) & Company, Inc.,
5.950%, due 07/31/1995............. 243,785
----------
GRAPHIC ARTS (5.48%)
240,000 R.R. Donnelley & Sons, Inc.,
5.920%, due 07/27/1995............. 238,974
----------
HOUSEHOLD PRODUCTS (4.45%)
195,000 Procter & Gamble Company, Inc.,
5.900%, due 08/08/1995............. 193,786
----------
MANUFACTURING/
DISTRIBUTION (10.74%)
230,000 Bemis Company, Inc.,
5.900%, due 07/14/1995............. 229,510
240,000 Unilever Capital Corporation, Inc.,
5.900%, due 08/04/1995............. 238,663
----------
468,173
----------
MEDICAL EQUIPMENT/
SUPPLIES (5.49%)
240,000 Bausch & Lomb, Inc.,
6.000%, due 07/21/1995............. 239,200
----------
OIL & GAS (5.58%)
245,000 Shell Oil Company, Inc.,
5.830%, due 08/11/1995............. 243,373
----------
PUBLISHING (5.48%)
240,000 Dun & Bradstreet Corporation, Inc.,
5.925%, due 08/01/1995............. 238,776
----------
RETAIL STORES (5.50%)
240,000 Wal-Mart Stores, Inc.,
6.000%, due 07/05/1995............. 239,840
----------
SECURITIES (10.85%)
236,000 Goldman Sachs L.P.,
5.850%, due 08/14/1995............. 234,312
240,000 Smith Barney, Inc.,
5.950%, due 08/03/1995............. 238,691
----------
473,003
----------
TELECOMMUNICATIONS (3.65%)
160,000 AT&T Capital Corporation, Inc.,
5.920%, due 08/04/1995............. 159,105
----------
TOBACCO (5.58%)
245,000 Philip Morris Capital Corporation, Inc.,
5.890%, due 08/10/1995............. 243,397
----------
TOTAL COMMERCIAL PAPER 3,876,878
----------
SHORT TERM U.S. GOVERNMENT
AND AGENCY OBLIGATIONS
(11.06% of total investments)
240,000 Federal National Mortgage Assn.,
Discount Note, 5.730%, due 08/02/1995 238,778
245,000 Federal National Mortgage Assn.,
Discount Note, 5.830%, due 08/14/1995 243,254
----------
TOTAL SHORT TERM
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS................. 482,032
----------
TOTAL INVESTMENTS
IN SECURITIES...................... $ 4,358,910
===========
<FN>
(a) Using Standard & Poor's industry classifications.
(b) Value also represents cost for federal income tax purposes.
The accompanying notes are an integral part
of these financial statements.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) GENERAL
Conseco Series Trust (the "Trust", formerly Bankers National Series Trust) is
a diversified, open-end management investment company registered under the
Investment Company Act of 1940, as amended ("the Act"), and was organized as a
Massachusetts Trust effective November 15, 1982. The Trust offers shares only to
affiliated life insurance company separate accounts (registered as unit
investment trusts under the Act) to fund the benefits under variable annuity
contracts.
Effective May 1, 1993, Great American Reserve Variable Annuity Account C
("Account C") transferred its assets to the Trust in exchange for shares of the
Common Stock, Corporate Bond (newly created effective May 1, 1993) and Money
Market Portfolios. Since May 1, 1993, the Trust continues to offer shares of
each of its portfolios to Account C.
On July 25, 1994 Great American Reserve Variable Annuity Account E commenced
operations which also invests in the shares of the Trust's portfolios.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION, TRANSACTIONS AND RELATED INVESTMENT INCOME
Investments in each portfolio are valued at the end of each business day of
the New York Stock Exchange, with the exception of regional business holidays.
Investment transactions are accounted for on the valuation date following the
trade date (the date the order to buy or sell is executed). Dividend income is
recorded on the ex-dividend date. The cost of investments sold is determined on
the specific identification basis. The Trust does not hold any investments which
are restricted as to resale, except the Hero Asia 9.110% bonds held in the Asset
Allocation Portfolio which are eligible for resale under Rule 144A of the
Securities Act of 1933.
The Board of Trustees (the "Trustees") determined that it will value the
Money Market Portfolio investments at amortized cost, which is conditioned on
the Trust's compliance with certain conditions contained in Rule 2a-7 of the
Act. The investment adviser of the Trust continuously reviews this method of
valuation and recommends changes to the Trustees, if necessary, to ensure that
the Money Market Portfolio investments are valued at fair value (as determined
by the Trustees in good faith).
In all portfolios of the Trust, except for the Money Market Portfolio,
securities traded on a national securities exchange are valued at closing market
prices. Listed securities for which no sale was reported on the valuation date
are valued at the mean of the bid and asked prices. Short term notes, U.S.
government obligations maturing within one year or less from the date purchased
and bank certificates of deposit are valued at amortized cost, which
approximates market.
Fixed income securities for which representative market quotes are readily
available are valued at the mid-day mean between the bid and asked prices as
quoted by one or more dealers who make a market in such securities.
FEDERAL INCOME TAXES
Each portfolio is treated as a separate taxable entity for federal income
tax purposes and qualifies as a regulated investment company under the Internal
Revenue Code. The Trust intends to continue to distribute all taxable income to
shareholders, and therefore, no provision has been made for federal income
taxes.
DIVIDENDS TO SHAREHOLDERS
For the Money Market Portfolio, dividends are declared and reinvested daily
from the sum of net investment income and net realized short-term capital gains
or losses. For all other portfolios, dividends are declared and reinvested on a
monthly or quarterly basis from net investment income, and on an annual basis,
from net investment income and net realized capital gains and losses.
INCOME EQUALIZATION
All portfolios, except the Money Market Portfolio, follow the accounting
practice known as income equalization by which a portion of the proceeds from
sales and costs of redemptions of shares is equivalent, on a per share basis, to
the amount of distributable investment income on the date the transaction is
credited or charged to undistributed income. As a result, undistributed
investment income per share is not materially affected by sales or redemptions
of the portfolio shares.
<PAGE>
(3) TRANSACTIONS WITH AFFILIATES
As investment adviser of the Trust, Conseco Capital Management, Inc. (the
"Adviser"), a wholly-owned subsidiary of Conseco, Inc., a specialized financial
services company listed on the New York Stock Exchange, charges an investment
advisory fee based on the daily net asset value at an annual rate of 0.25
percent for the Money Market Portfolio, 0.50 percent for the Government
Securities Portfolio and the Corporate Bond Portfolio, 0.55 percent for the
Asset Allocation Portfolio, and 0.60 percent for the Common Stock Portfolio. The
total fees paid to the Adviser for the six months ended June 30, 1995 and the
year ended December 31, 1994 were $313,420 and $560,765, respectively. The
Adviser reimburses each Trust portfolio whenever the ratio of expenses,
including investment advisory fees, to average net assets exceeds 0.45 percent
for the Money Market Portfolio, 0.70 percent for the Government Securities
Portfolio and the Corporate Bond Portfolio, 0.75 percent for the Asset
Allocation Portfolio and 0.80 percent for the Common Stock Portfolio.
(4) INVESTMENT TRANSACTIONS
The aggregate cost of purchases and proceeds from sales of investments
(excluding short term investments) during the six months ended June 30, 1995
amounted to $115,305,080 and $110,408,478, respectively. The aggregate cost of
purchases and proceeds from sales of U.S. government securities amounted to
$7,535,699 and $7,951,558, respectively.
At June 30, 1995, gross unrealized appreciation and depreciation of
investments were as shown in Chart 1.
(5) NET ASSETS
Net assets at June 30, 1995 are shown in Chart 2.
CHART 1
<TABLE>
<CAPTION>
ASSET COMMON CORPORATE GOVERNMENT MONEY
ALLOCATION STOCK BOND SECURITIES MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Gross unrealized appreciation......... $ 721,147 $ 11,495,058 $ 316,892 $ 205,294 $ --
Gross unrealized depreciation ........ (83,787) (1,057,988) (108,573) (2,250) --
----------- ------------ ------------ ------------ --------
Net unrealized appreciation ....... $ 637,359 $ 10,437,070 $ 208,319 $ 203,044 $ --
=========== ============ ============ ============ ========
</TABLE>
CHART 2
<TABLE>
<CAPTION>
ASSET COMMON CORPORATE GOVERNMENT MONEY
ALLOCATION STOCK BOND SECURITIES MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Proceeds from the sales of shares since
organization, less cost of shares
redeemed and net equalization ...... $ 6,851,319 $ 77,620,915 $ 14,618,515 $ 4,629,262 $ 4,905,469
Undistributed net investment expense .. -- -- -- (11,642) --
Undistributed net realized gain (loss)
on sale of investments ............. 23,575 1,308,177 (181,988) 8,955 --
Net unrealized appreciation
of investments ..................... 637,359 10,437,070 208,319 203,044 --
------------ ------------ ------------ ------------ -----------
Total net assets ................ $ 7,512,253 $ 89,366,162 $ 14,644,846 $ 4,829,619 $ 4,905,469
============ ============ ============ ============ ===========
</TABLE>
<PAGE>
CONSECO SERIES TRUST
NOTES TO FINANICAL STATEMENTS - (Continued)
(6) FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ASSET ALLOCATION PORTFOLIO
-----------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1993 1992 (e) 1991 (f)
(UNAUDITED) (AUDITED) (AUDITED) (AUDITED) (AUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value per share,
beginning of period .............................. $ 11.040 $ 11.400 $ 11.630 $ 11.740 $ 11.050
Income from investment operations (a):
Net investment income ............................ 0.239 0.463 0.410 0.633 0.210
Net realized gain (loss) and change
in unrealized appreciation
(depreciation) on investments ................. 1.469 (0.558) 0.218 0.867 2.094
--------- --------- --------- --------- ---------
Total income (loss) from
investment operations .................... 1.708 (0.095) 0.628 1.500 2.304
--------- --------- --------- --------- ---------
Distributions (a):
Dividends from net
investment income .............................. (0.568) (0.234) (0.570) (1.463) (0.532)
Distribution of net realized
capital gains .................................. -- (0.031) (0.288) (0.147) (1.082)
--------- --------- --------- --------- ---------
Total distributions .......................... (0.568) (0.265) (0.858) (1.610) (1.614)
--------- --------- --------- --------- ---------
Net asset value per share, end of period ........... $ 12.180 $ 11.040 $ 11.400 $ 11.630 $ 11.740
========= ========= ========= ========= =========
Total return (b) (d) ............................... 30.87%(g) (0.55%) 10.38% 10.36% 21.57%
Ratios/supplemental data:
Net assets, end of period (c) .................... $ 7,512,253 $ 6,172,390 $ 6,161,924 $4,308,251 $1,373,327
Ratio of expenses to average
net assets (d) ................................. 0.75%(g) 0.75% 0.75% 1.25% 1.25%
Ratio of net investment income
to average net assets (d) ...................... 4.23%(g) 4.20% 3.55% 5.46% 1.69%
Portfolio turnover rate .......................... 246.11%(g) 223.92% 539.90% 690.17% 128.46%
<FN>
(a) Per share amounts presented are based on a share outstanding throughout the
periods indicated.
(b) Total return represents performance of the Trust portfolios only and does
not include mortality and expense deductions in separate accounts.
(c) Effective May 1, 1993, Account C became a shareholder of the portfolios of
the Trust.
(d) These ratios have been favorably affected by a guarantee from the Adviser
that the ratio of expenses to average net assets would not exceed 0.45
percent for the Money Market Portfolio, 0.70 percent for the Government
Securities Portfolio and the Corporate Bond Portfolio, 0.80 percent for the
Common Stock Portfolio and 0.75 percent for the Asset Allocation Portfolio
for the six months ended June 30, 1995 and the years ended December 31, 1994
and 1993 and 1.25 percent for each portfolio for the years ended December
31, 1992 and 1991.
(e) The BNL High Yield and BNL Convertible Portfolios were merged into the Asset
Allocation Portfolio (formerly the BNL Multiple Strategies Portfolio)
effective March 11, 1992.
(f) Lexington Management Corporation was Sub-adviser to the Government
Securities, Common Stock, and Asset Allocation (formerly the BNL Multiple
Strategies) Portfolios prior to November 19, 1991.
(g) Annualized.
</FN>
</TABLE>
<PAGE>
(6) FINANCIAL HIGHLIGHTS - (Continued)
<TABLE>
<CAPTION>
COMMON STOCK PORTFOLIO
-----------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1993 1992 1991 (e)
(UNAUDITED) (AUDITED) (AUDITED) (AUDITED) (AUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value per share,
beginning of period .............................. $ 16.540 $ 16.690 $ 16.880 $ 16.290 $ 13.870
Income from investment operations (a):
Net investment income ............................ 0.142 0.240 0.232 0.292 0.347
Net realized gain (loss) and change
in unrealized appreciation
(depreciation) on investments .................. 2.483 (0.063) 0.920 2.787 3.311
--------- --------- --------- --------- ---------
Total income from
investment operations ................... 2.625 0.177 1.152 3.079 3.658
--------- --------- --------- --------- ---------
Distributions (a):
Dividends from net
investment income ............................ (0.685) (0.192) (1.181) (1.101) (0.186)
Distribution of net realized
capital gains ................................ -- (0.135) (0.161) (1.388) (1.052)
--------- --------- --------- --------- ---------
Total distributions ...................... (0.685) (0.327) (1.342) (2.489) (1.238)
--------- --------- --------- --------- ---------
Net asset value per share, end of period............ $ 18.480 $ 16.540 $ 16.690 $ 16.880 $ 16.290
========= ========= ========= ========= =========
Total return (b) (d) ............................... 31.45%(f) 1.92% 8.35% 18.34% 25.77%
Ratios/supplemental data:
Net assets, end of period (c) ................. $ 89,366,162 $ 74,759,728 $ 66,799,824 $ 8,307,023 $8,379,781
Ratio of expenses to average
net assets (d) ................................ 0.80%(f) 0.80% 0.80% 1.25% 1.25%
Ratio of net investment income
to average net assets (d) .................... 1.68%(f) 1.47% 1.40% 1.73% 2.19%
Portfolio turnover rate ......................... 207.20%(f) 213.67% 205.81% 461.05% 100.39%
<FN>
(a) Per share amounts presented are based on a share outstanding throughout the
periods indicated.
(b) Total return represents performance of the Trust portfolios only and does
not include mortality and expense deductions in separate accounts.
(c) Effective May 1, 1993, Account C became a shareholder of the portfolios of
the Trust.
(d) These ratios have been favorably affected by a guarantee from the Adviser
that the ratio of expenses to average net assets would not exceed 0.45
percent for the Money Market Portfolio, 0.70 percent for the Government
Securities Portfolio and the Corporate Bond Portfolio, 0.80 percent for the
Common Stock Portfolio and 0.75 percent for the Asset Allocation Portfolio
for the six months ended June 30, 1995 and the years ended December 31, 1994
and 1993 and 1.25 percent for each portfolio for the years ended December
31, 1992 and 1991.
(e) Lexington Management Corporation was Sub-adviser to the Government
Securities, Common Stock, and Asset Allocation (formerly the BNL Multiple
Strategies) Portfolios prior to November 19, 1991.
(f) Annualized.
</FN>
</TABLE>
<PAGE>
(6) FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
CORPORATE BOND PORTFOLIO(e)
------------------------------------------------
SIX MONTHS PERIOD FROM
ENDED YEAR ENDED MAY 1, 1993 TO
JUNE 30, DECEMBER 31, DECEMBER 31,
1995 1994 1993
(UNAUDITED) (AUDITED) (AUDITED)
----------- --------- ---------
<S> <C> <C> <C>
Net asset value per share, beginning of period ............................... $ 9.450 $ 9.980 $ 10.000
Income from investment operations (a):
Net investment income ...................................................... 0.357 0.649 0.417
Net realized gain (loss) and change in unrealized appreciation
(depreciation) on investments ............................................ 0.761 (0.912) 0.173
--------- --------- ---------
Total income (loss) from investment operations ........................ 1.118 (0.263) 0.590
--------- --------- ---------
Distributions (a):
Dividends from net investment income ....................................... (0.528) (0.267) (0.610)
Distribution of net realized capital gains ................................. -- -- --
--------- --------- ---------
Total distributions ................................................... (0.528) (0.267) (0.610)
--------- --------- ---------
Net asset value per share, end of period ..................................... $ 10.040 $ 9.450 $ 9.980
========= ========= =========
Total return (b) (d) ......................................................... 23.36%(f) (2.65%) 8.84%(f)
Ratios/supplemental data:
Net assets, end of period (c) .............................................. $ 14,644,846 $12,903,063 $13,577,440
Ratio of expenses to average net assets (d) ................................ 0.70%(f) 0.70% 0.70%(f)
Ratio of net investment income to average net assets (d) ................... 7.38%(f) 6.78% 6.22%(f)
Portfolio turnover rate .................................................... 248.88%(f) 198.48% 406.24%(f)
<FN>
(a) Per share amounts presented are based on a share outstanding throughout the
periods indicated.
(b) Total return represents performance of the Trust portfolios only and does
not include mortality and expense deductions in separate accounts.
(c) Effective May 1, 1993, Account C became a shareholder of the portfolios of
the Trust.
(d) These ratios have been favorably affected by a guarantee from the Adviser
that the ratio of expenses to average net assets would not exceed 0.45
percent for the Money Market Portfolio, 0.70 percent for the Government
Securities Portfolio and the Corporate Bond Portfolio, 0.80 percent for
the Common Stock Portfolio and 0.75 percent for the Asset Allocation
Portfolio for the six months ended June 30, 1995 and the years ended
December 31, 1994 and 1993 and 1.25 percent for each portfolio for the
years ended December 31, 1992 and 1991.
(e) The Corporate Bond Portfolio became an available investment option
effective May 1, 1993, with an initial offering price of $10.00.
(f) Annualized.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
NOTES TO FINANICAL STATEMENTS - (Continued)
(6) FINANCIAL HIGHLIGHTS - (Continued)
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES PORTFOLIO
-----------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1993 1992 (e) 1991 (f)
(UNAUDITED) (AUDITED) (AUDITED) (AUDITED) (AUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value per share,
beginning of period ............................... $ 11.090 $ 11.450 $ 11.610 $ 12.000 $ 11.220
Income from investment operations (a):
Net investment income ............................. 0.351 0.720 0.738 0.679 0.830
Net realized gain (loss) and change
in unrealized appreciation
(depreciation) on investments ................... 0.889 (1.031) 0.281 0.219 0.856
--------- --------- --------- --------- ---------
Total income (loss) from
investment operations ...................... 1.240 (0.311) 1.019 0.898 1.686
--------- --------- --------- --------- ---------
Distributions (a):
Dividends from net
investment income ............................... -- (0.049) (1.179) (1.094) (0.906)
Distribution of net realized
capital gains ................................... -- -- -- (0.194) --
--------- --------- --------- --------- ---------
Total distributions ........................... -- (0.049) (1.179) (1.288) (0.906)
--------- --------- --------- --------- ---------
Net asset value per share, end of period ............ $ 12.330 $ 11.090 $ 11.450 $ 11.610 $ 12.000
========= ========= ========= ======== =========
Total return (b) (d) ................................ 22.40%(g) (2.79%) 8.91% 6.62% 15.01%
Ratios/supplemental data:
Net assets, end of period (c) ..................... $ 4,829,619 $ 4,712,785 $ 7,579,366 $ 10,220,193 $5,780,442
Ratio of expenses to average
net assets (d) .................................. 0.70%(g) 0.70% 0.70% 1.25% 1.25%
Ratio of net investment income
to average net assets (d) ....................... 6.16%(g) 6.45% 6.30% 5.77% 7.24%
Portfolio turnover rate ........................... 274.62%(g) 421.05% 397.42% 742.09% 55.85%
<FN>
(a) Per share amounts presented are based on a share outstanding throughout the
periods indicated.
(b) Total return represents performance of the Trust portfolios only and does
not include mortality and expense deductions in separate accounts.
(c) Effective May 1, 1993, Account C became a shareholder of the portfolios of
the Trust.
(d) These ratios have been favorably affected by a guarantee from the Adviser
that the ratio of expenses to average net assets would not exceed 0.45
percent for the Money Market Portfolio, 0.70 percent for the Government
Securities Portfolio and the Corporate Bond Portfolio, 0.80 percent for
the Common Stock Portfolio and 0.75 percent for the Asset Allocation
Portfolio for the six months ended June 30, 1995 and the years ended
December 31, 1994 and 1993 and 1.25 percent for each portfolio for the
years ended December 31, 1992 and 1991.
(e) The BNL Mortgage-Backed Securities Portfolio was merged into the Government
Securities Portfolio (formerly the BNL Government Securities Portfolio)
effective March 11, 1992.
(f) Lexington Management Corporation was Sub-adviser to the Government
Securities, Common Stock, and Asset Allocation (formerly the BNL Multiple
Strategies) Portfolios prior to November 19, 1991.
(g) Annualized.
</FN>
</TABLE>
<PAGE>
CONSECO SERIES TRUST
NOTES TO FINANICAL STATEMENTS - (Continued)
(6) FINANCIAL HIGHLIGHTS - (Continued)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1993 1992 1991
(UNAUDITED) (AUDITED) (AUDITED) (AUDITED) (AUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value per share,
beginning of period ................................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from investment operations (a):
Net investment income .............................. 0.028 0.038 0.029 0.026 0.050
Net realized gain and change
in unrealized appreciation
on investments ................................... -- -- -- 0.001 --
--------- --------- --------- -------- ---------
Total income from
investment operations ........................ 0.028 0.038 0.029 0.027 0.050
--------- --------- --------- -------- ---------
Distributions (a):
Dividends from net
investment income ................................ (0.028) (0.038) (0.029) (0.026) (0.050)
Distribution of net realized
capital gains .................................. -- -- -- (0.001) --
--------- --------- --------- -------- ---------
Total distributions .......................... (0.028) (0.038) (0.029) (0.027) (0.050)
--------- --------- --------- -------- ---------
Net asset value per share, end of period.............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========= ========= ========= ======== =========
Total return (b) (d) ................................. 5.64%(e) 3.78% 2.86% 2.66% 5.06%
Ratios/supplemental data:
Net assets, end of period (c) ..................... $4,905,469 $5,105,367 $5,229,641 $3,111,264 $5,010,336
Ratio of expenses to average
net assets (d) ................................. 0.45%(e) 0.45% 0.45% 1.25% 1.25%
Ratio of net investment income
to average net assets (d) ...................... 5.64%(e) 3.78% 2.86% 2.66% 5.06%
Portfolio turnover rate ........................... N/A N/A N/A N/A N/A
<FN>
(a) Per share amounts presented are based on a share outstanding throughout the
periods indicated.
(b) Total return represents performance of the Trust portfolios only and does
not include mortality and expense deductions in separate accounts.
(c) Effective May 1, 1993, Account C became a shareholder of the portfolios of
the Trust.
(d) These ratios have been favorably affected by a guarantee from the Adviser
that the ratio of expenses to average net assets would not exceed 0.45
percent for the Money Market Portfolio, 0.70 percent for the Government
Securities Portfolio and the Corporate Bond Portfolio, 0.80 percent for the
Common Stock Portfolio and 0.75 percent for the Asset Allocation Portfolio
for the six months ended June 30, 1995 and the years ended December 31, 1994
and 1993 and 1.25 percent for each portfolio for the years ended December
31, 1992 and 1991.
(e) Annualized.
</FN>
</TABLE>
<PAGE>
BANKERS NATIONAL VARIABLE ACCOUNT B
SPONSOR
Bankers National Life Insurance Company
Carmel, Indiana.
INDEPENDENT PUBLIC ACCOUNTANTS
Coopers & Lybrand L.L.P. Indianapolis, Indiana.
CONSECO SERIES TRUST
BOARD OF TRUSTEES
William P. Daves, Jr., Chairman Consultant to the insurance and health care
industries.
Director, President and Chief Executive Officer,
FFG Insurance Co., Dallas, Texas.
Harold W. Hartley, Trustee
Retired. Chartered Financial Analyst.
Formerly Executive Vice President,
Tenneco Financial Services Inc.,
Fort Myers Beach, Florida.
Maxwell E. Bublitz, Trustee and President
President,
Conseco Capital Management, Inc.,
Carmel, Indiana.
Dr. R. Jan LeCroy, Trustee
President,
Dallas Citizens Council,
Dallas, Texas.
Dr. Jesse H. Parrish, Trustee
Retired. Formerly President,
Midland College, Midland, Texas.
INVESTMENT ADVISER
Conseco Capital Management, Inc.
Carmel, Indiana.
INDEPENDENT PUBLIC ACCOUNTANTS
Coopers & Lybrand L.L.P. Indianapolis, Indiana.
CUSTODIAN
Bankers Trust Company New York, New York.
<PAGE>
BANKERS NATIONAL
LIFE INSURANCE COMPANY
A Conseco Company
Bankers National
Variable Account B
Conseco Series Trust
June 30, 1995
SEMIANNUAL REPORT
TO CONTRACT OWNERS
This report is for the information of contract owners and participants of the
Bankers National Variable Account B and Conseco Series Trust. It is authorized
for distribution to other persons only when preceded or accompanied by a current
prospectus which contains more complete information, including charges and
expenses.
Bankers National Life Insurance Company
11815 North Pennsylvania Street
Carmel, Indiana 46032
