Princor Funds Performance
Average Annual Total Returns
As of March 31, 1995
(the latest calendar quarter)
1 Year 5 Years 10 Years
with without with without with without
sales sales sales sales sales sales
A Shares of: charge charge charge charge charge charge
Balanced 0.88% 5.85% 8.62% 9.67% 8.81%a 9.53%a
Blue Chip 11.47 16.97 7.26b 8.53b -- --
Bond 0.27 5.21 7.93 8.98 8.62a 9.34a
Capital Accumulation 7.15 12.44 9.16 10.21 11.26 11.80
Emerging Growth 6.60 11.85 14.53 15.64 15.40a 16.16a
Government Securities
Income 0.25 5.19 7.46 8.50 9.14c 9.68c
Growth 7.71 13.02 14.83 15.94 14.12 14.67
High Yield 1.37 6.37 7.41 8.45 6.81a 7.52a
Tax-Exempt Bond 1.36 6.36 6.64 7.68 6.98d 7.55d
Utilities -1.88 2.96 -0.64e 1.47e -- --
World -9.48 -5.02 6.63 7.66 10.35 10.89
1 Year(f)
with without
B Shares of: CDSC* CDSC*
Balanced 3.60% 7.60%
Blue Chip 6.21 10.21
Bond 1.29 5.29
Capital Accumulation 6.68 10.68
Emerging Growth 10.57 14.57
Government Securities Income 2.30 6.30
Growth 9.79 13.79
High Yield 0.82 4.82
Tax-Exempt Bond 6.40 10.40
Utilities 1.31 5.31
World -6.11 -2.21
* Contingent Deferred Sales Charge
a Partial period, from effective date 12/18/87
b Partial period, from effective date 3/1/91
c Partial period, from effective date 5/21/85
d Partial period, from effective date 3/20/86
e Partial period, from effective date 12/16/92
f Partial period, from effective date 12/9/94
Total return represents the overall performance of an investment for a
specific period of time, assuming the reinvestment of dividends and capital
gains. Average annual total returns for A shares are with and without maximum
4.75% sales charge. Average annual total returns for B shares are with and
without maximum 4.0% contingent deferred sales charge.
Total returns reflect past performance. Past performance does not predict
future performance. The investment return and principal value of an investment
will fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
Contents
Page
President's Letter.......................1
Comments from the Funds'
Portfolio Managers....................2
The Wall Street Bear Isn't
Scary ... From A Distance................6
The Princor Growth-Oriented Funds
Financial Statements and Financial
Highlights
Statements of Assets and
Liabilities...........................8
Statements of Operations.............10
Statements of Changes in
Net Assets.........................12
Notes to Financial Statements........14
Schedules of Portfolio Investments
Balanced Fund, Inc.................20
Blue Chip Fund, Inc................22
Capital Accumulation
Fund, Inc........................23
Emerging Growth Fund, Inc..........26
Growth Fund, Inc...................28
World Fund, Inc....................31
Financial Highlights.................36
The Princor Income-Oriented Funds
Financial Statements and Financial
Highlights
Statements of Assets and
Liabilities........................40
Statements of Operations.............42
Statements of Changes in
Net Assets.........................44
Notes to Financial Statements........46
Schedules of Portfolio Investments
Bond Fund, Inc.....................52
Cash Management Fund, Inc..........54
Government Securities Income
Fund, Inc........................56
High Yield Fund, Inc...............59
Tax-Exempt Bond Fund, Inc..........60
Tax-Exempt Cash Management
Fund, Inc........................64
Utilities Fund, Inc................66
Financial Highlights.................68
Special Offering of Class A Shares......72
The Princor Family of Mutual
Funds..............................73
<PAGE>
A Message from the President
Dear Shareholder
I am pleased to report that 1995 began on a very positive note for Princor
equity and income funds. In contrast, only six months ago, investors were
feeling the effects of generally declining stock and bond markets. Today, the
environment for both stocks and bonds is improving. Interest rates appear to
have stabilized, and the stock market has experienced a strong uptrend.
In last falls annual report, we reiterated some investment fundamentals to
those who may have been uncertain about their investments. It simply stated to
invest regularly, focus on the long term and diversify among different asset
classes. The message was by no means original or profound. However, most
investors who followed the fundamentals are now realizing the positive
investment results produced by most funds in recent months. Those same, simple
investment fundamentals still apply for today's mutual fund investors.
Growth in assets for the Princor family of funds continues at a rapid pace.
Since the Annual Report in October 1994, assets invested in the Princor funds as
of April 30, 1995, have grown from $1.7 billion to almost $2.0 billion.
Princor continues to develop new products and services so you have more
choices when investing for your future. Last December, Princor introduced a new
class of Princor fund shares, called Class B shares. The original shares are now
known as Class A shares. This dual-class arrangement gives investors a choice of
how to pay sales charges. Class A shares feature a maximum 4.75 percent
front-end sales charge, a .25 percent annual service fee and no surrender
charge. Class B shares have no front-end sales charge, a 1 percent annual
service fee and a surrender charge that declines from 4 to 0 percent over a
six-year period. Be sure to read more about Class B shares in the prospectus
before investing.
On the following pages are comments by our Princor fund managers on the
markets, the economy and other factors affecting how they manage your money.
Following the manager comments is a discussion entitled, "The Wall Street Bear
Isn't Scary ... From A Distance." This provides some compelling reasons why
stock mutual funds may be appropriate for your portfolio.
Thank you for investing with Princor. If you have any questions about your
mutual fund account, please feel free to call us; we're here to serve you.
Sincerely,
Stephan L. Jones
President
<PAGE>
MANAGER'S COMMENTS
Princor Management Corporation, the adviser to the Princor funds, is staffed
with investment professionals who manage each individual fund. Comments by these
individuals in the following paragraphs summarize in capsule form the general
strategy and recent results of each fund over the past six months. We believe
any Princor fund should, under normal circumstances, represent only a portion of
an investor's total investments. For most investors a portfolio should be
balanced among stocks, bonds, and cash reserves to fit their own needs and risk
tolerance. Those who maintain this balanced approach should be aware of the
short-term results, but focus on the long term. Past performance is no guarantee
of future results. Fund values will fluctuate so that the shares, upon
redemption, may be worth more or less than their orginal cost.
Growth-Oriented Funds
Princor Balanced Fund
Judi Vogel
In recent months economic developments have been driving the bond and stock
markets. Through the end of 1994 robust economic growth and higher interest
rates orchestrated by the Federal Reserve tended to raise inflation fears,
resulting in very low or negative stock and bond returns. So far in 1995,
returns in the capital markets have been strongly positive thanks to evidence of
a slowdown in the economy, falling interest rates, and surprisingly strong
corporate earnings. As a balanced fund, we participate in both the stock and
bond markets through investments in common stocks, convertible bonds, U.S.
Treasury securities and cash. In December we began a gradual shift from our
traditional 60% equities/40% fixed income position to a 50/50 portfolio split.
This adjustment is reflective of the favorable relative valuation of bonds
versus stocks. Going forward, we expect the economy to experience a typical
cycle, complete with a peak of activity in 1996 and subsequent recession. We are
currently becoming more defensive in the portfolio, favoring banks, utilities,
and growth companies with international exposure.
Princor Blue Chip Fund
Mark Williams
Companies typically classified as Blue Chip were the beneficiaries of two
events during the past six months. As economic indicators showed a slowing
economy, investors rotated their investment dollars from cyclical companies to
more stable and consistent growth companies that make up the Blue Chip universe.
This resulted in higher prices for those companies that have a history of steady
earnings growth during economic slowdowns. Additionally, the continued weakness
of the dollar allowed these companies to report higher earnings than they
normally would. This is due to the currency exchanges large multi-national firms
engage in to conduct their day-to-day business. These two events, while helping
performance during the past six months, are transitory and should not be counted
on to aid any future performance. We continue to select stocks in the manner
used since the Fund's inception.
Princor Capital Accumulation Fund
David White
Our strategy is to invest in common stocks that have the potential to
produce above average returns for their owners over the long term. This requires
a careful weighing of future cash flows against today's price. This is a "bottom
up" approach to investing. We also pay attention to "top down" issues to help
forecast the future of companies we analyze. This includes looking at economic
cycles, both domestic and worldwide, secular trends and industry conditions.
Therefore, our approach is both "top down" and "bottom up." For the past couple
of years we have been very positive on the current economic cycle, substantially
overweighting the portfolio with cyclical issues. In mid 1994, as the cycle
moved past its midpoint, we started paring down this overweighting, eliminating
it in May 1995. The bulk of the proceeds from the sale of cyclical issues went
into electric utilities, banks and growth stocks. Each of these sectors have
historically performed well in the latter stages of an economic cycle through a
recession.
Princor Emerging Growth Fund
Mike Hamilton
The equity market's preference for large cap stocks was reflected in the
early 1995 returns of the various indexes. The NASDAQ Composite and the Value
Line trailed the S&P 500 and Dow Industrials. The Emerging Growth Fund was able
to outperform the Lipper Mid Cap Fund Average given the Fund's over-weighting in
healthcare and technology. The focus has been on producers not consumers and
continues to be our focus. While an economic slowdown is foreseen and even
healthy the companies within the emerging growth sector should continue to
experience above average growth.
Princor Growth Fund
Mike Hamilton
The first months of 1995 saw one of the strongest equity markets in several
years. This coming on the prior year's equally poor bond market seemed to catch
investors by surprise. The S&P 500 Index was the best performing for the quarter
indicating the market's preference for large cap stocks. The Princor Growth Fund
almost matched the S&P 500 and did better than the Lipper Growth Fund Average.
This is somewhat surprising given its average market cap is below the S&P Index.
The portfolio is positioned to capture the earnings gains from what we believe
to be an elongated economic cycle without dramatic inflationary problems yet
visible. The fund is focused on companies providing products and services that
will help companies operate more efficiently and lower operating costs. This
results in a portfolio with greater exposure to technology and industrial
manufacturing.
Princor World Fund
Scott Opsal
Most international equity markets have fallen over the last six months, but
the U.S. dollar's weakness has masked the significant declines which have taken
place. In particular, the Japanese Yen and the German Mark (and currencies
linked to the mark) have recently gained 15% or more against the dollar. This
has improved returns expressed in U.S. dollars by a like amount. The World Fund
is underweighted in Japanese and German stocks, meaning that the fund benefited
less from a weak dollar than most other funds. The World Fund also experienced
losses in Mexico, which represented approximately 5% of assets. Mexican stocks
lost over 60% of their value following the December devaluation. Looking
forward, the fund is well positioned in European cyclicals which should benefit
from economic recovery in Europe. Asian growth stocks also stand as good values,
but the dollar's future moves will likely dominate foreign market returns in the
near term.
Important Notes for Growth-Oriented Funds
Dow Jones Industrial Average: This price-weighted average consists of 30
actively traded blue chip stocks, primarily industrials.
Lipper Growth Fund Average: This average consists of funds which normally invest
in companies whose long term earnings are expected to grow significantly faster
than the earnings of the stocks represented in the major unmanaged stock
indices. The one-year average currently contains 456 funds.
Lipper Mid Cap Fund Average: This average consists of funds which by prospectus
or portfolio practice, limit their investments to companies with average market
capitalizations and/or revenues between $800 million and the average market
capitalization of the Wilshire 4500 Index (as captured by the Vanguard Index
Extended Market Fund). The one-year average currently contains 68 funds.
NASDAQ Composite Index: This index is based on the National Association of
Securities Dealers Automated Quotations (NASDAQ) and represents most domestic
Over-The-Counter stocks, a total of some 3500 stocks.
Standard & Poor's 500 Stock Index: An unmanaged index of 500 widely held common
stocks representing industrial, financial, utility and transportation companies
listed on the New York Stock Exchange, American Stock Exchange and the
Over-the-Counter market.
Value Line Composite Index: This equally weighted geometric average consists of
a mix of about 1,700 common stocks that are listed on the following exchanges:
New York Stock Exchange, American Stock Exchange and the NASDAQ Exchange.
Income-Oriented Funds
Princor Bond Fund
Don Brattebo
The bond market, while changing courses several times, continued to zig-zag
its way through the past six months. At the same time the Federal Reserve, whom
we heard from several times in 1994, put another shot across the bow of
inflation on February 1 by raising short term interest rates one-half of one
percent. However, this time it had little effect because financial markets had
pretty much anticipated the move. During the last quarter of 1994 interest rates
rose slightly, but this past three-month period saw rates decline very sharply.
The resultant higher bond prices and the fact we are concentrated in "Baa" rated
corporate bonds both contributed to our very strong performance during the first
half of our fiscal year. The "Baa" corporate sector of the bond market
outperformed all other sectors this last quarter, so we participated directly in
the strength of that particular part of the market. Where do we go from here?
The credit tightening by the Federal Reserve during 1994 and early this year is
starting to take effect. We are seeing signs that the economy is slowing, the
talk of further tightening has subsided and recent figures suggest very moderate
inflation in coming months. Although this suggests we could see lower interest
rates in the period ahead, one can expect market swings in either direction as
market analysts and portfolio managers attempt to micro-manage every morsel of
economic news. In this environment, we will continue to seek out the best values
day-to-day and concentrate on credit quality, call protection and a
well-diversified portfolio.
Princor Government Securities Income Fund
Marty Schafer
The most powerful event during this semi-annual period was the previous
action taken by the Federal Reserve Board to increase short-term interest rates.
The Fed's actions were to slow economic growth and potential inflation. During
this period signs of a slowing economy and controlled inflation surfaced and the
markets quickly rewarded bond investors with a steep decline of mortgage
interest rates. Our disciplined approach of running a portfolio priced at or
below par has once again provided our shareholders with strong performance. We
continue to believe the value of discount mortgage securities should persist, as
they are powered by fundamental and technical forces. As always, our focus
continues to be long term, striking an appropriate relationship between current
income and total return.
Princor High Yield Fund
Ken Hovey
Normally the high yield market is not as highly correlated to the Treasury
market as are other types of bonds. However, over the past six months, the high
yield market has fairly closely tracked the movement in Treasuries which
resulted in low returns at the end of 1994 and strong positive results through
April 30. Our Fund has compared well as compared to other high yield funds and
as compared to most other bond type investment. Our strategy of reduced credit
risk within the high yield sector has benefited our total returns. Since there
has been a tightening of promised yields in the top tier of high yield credit
quality, i.e. BB, we have been purchasing more B bonds over the past six months.
We think there currently is more relative value in taking a bit more credit
risk. We continue to be focused on delivering as much return as possible with a
prudent amount of risk. We have been active in enhancing yields by selling our
lowest yielding bonds and replacing them with more attractive holdings. At the
same time, portfolio diversification has been, and will continue to be,
broadened. We have been successful in avoiding defaults. The rate of defaults in
the market is still quite low but increased in 1994 over 1993. The actuality of
defaults or the expectation of higher defaults due to economic conditions is our
greatest concern going forward.
Princor Tax-Exempt Bond Fund
Dan Garrett
The past six months have seen a general improvement in bonds due to falling
interest rates. Municipal bonds have done extremely well compared to taxable
bonds. Those investors who stayed in the fund during the worst bond market in
decades have been rewarded with a rebound equal to the drop we saw in 1994. Our
fund had longer bonds than our peer group resulting in returns worse than the
average in 1994 and better than the average so far in 1995. We have now moved so
that as interest rates change our bonds have about the same market move as the
average. We continue to focus on the long term return of revenue bonds of
investment grade. Our longer bonds do have more short term volatility than
shorter bonds, but should lead to higher returns over the very long term.
Princor Utilities Fund
Catherine Green
The utility sector of the market enjoyed improving performance since the
end of our last fiscal year. A falling interest rate environment has benefited
utility stocks throughout this period. As utility stocks have a history of
tracking changes in interest rates, this has been a positive factor. In the
electric utility industry, there was much discussion in 1994 as to the changing
competitive environment for the industry. As we begin to work through changes,
the fears of these changes have been lessened. Our fund continues to monitor the
regulatory environment and inputs possible changes into our forecasting process.
Our focus is on companies who have higher potential for success in this new
environment.
Princor Cash Management Fund
Princor Tax-Exempt Cash Management Fund
Mike Johnson Steve Schneider
During the latter part of 1994 and continuing into the first month of 1995,
the Federal Reserve continued to raise short-term interest rates in response to
strengthening economic results. However, since February rates have been leveling
off. The average maturity of our own taxable portfolio, as well as that of the
industry, had been declining in response to the string of Fed tightening moves.
However, the strategy has begun to move in the direction of extending average
days since the money market yields have flattened and the marketplace does not
appear to be anticipating any further rate hikes. We continue to target and
actively monitor the industry averages in order to keep both our yields and
average days in line. Our portfolios continue to invest from a list of approved
issues of the highest credit quality maintained by our investment securities
analytical staff. During the first quarter of 1995, the assets for both our
taxable and tax-exempt portfolios as well as those industry-wide all increased
to record levels.
<PAGE>
The Wall Street Bear Isn't Scary . . . from a distance.
Most people are uncomfortable with the unknown. For instance, to those who find
computers intimidating, the chances of becoming a computer wizard are slim. The
dreams of becoming an Olympic gold medal swimmer fade if water chills the spine.
When bears are loose on Wall Street, investors are probably not anxious to
wander onto the street.
However, frequently, the wandering bear on Wall Street isn't the problem. How
investors respond to the bear is.
The stock market does not have to be a part of the unknown for any investor.
Because of the potential for higher long-term investment returns, investors
should give some consideration to equities for their investment portfolios.
One reason is that since 1925, the advantage of stocks over other investment
choices is significant. The chart to the right compares the differing growth of
$1. Inflation adjusts the value of a dollar to $8.35. Treasury Bills of $1 would
have grown to $12.19 in 1994. A $1 investment in long-term government bonds
during this same period would be valued at $25.86. If $1 had been invested in
large-company stocks in 1925, the investment value in 1994 would be $810.54.
However, the same investment in small-company stocks would be valued at
$2,842.77 today!
<TABLE>
<CAPTION>
Chart - Wealth Indices of Investments in the U.S. Capital Market
The chart below shows the values used to calculate the growth of $1 compounded
annually in each of the categories listed below.
Year-by-Year
Total Returns
(in percent)
From 1926 to 1994
Intermediate
Large Small Long-Term Long-Term Term U.S.
Company Company Corporate Government Government Treasury
Year Stocks Stocks Bonds Bonds Bonds Bills Inflation
<C> <C> <C> <C> <C> <C> <C> <C>
1926 11.62 0.28 7.37 7.77 5.38 3.27 -1.49
1927 37.49 22.10 7.44 8.93 4.52 3.12 -2.08
1928 43.61 39.69 2.84 0.10 0.92 3.56 -0.97
1929 -8.42 -51.36 3.27 3.42 6.01 4.75 0.20
1930 -24.90 -38.15 7.98 4.66 6.72 2.41 -6.03
1931 -43.34 -49.75 -1.85 -5.31 -2.32 1.07 -9.52
1932 -8.19 -5.39 10.82 16.84 8.81 0.96 -10.30
1933 53.99 142.87 10.38 -0.07 1.83 0.30 0.51
1934 -1.44 24.22 13.84 10.03 9.00 0.16 2.03
1935 47.67 40.19 9.61 4.98 7.01 0.17 2.99
1936 33.92 64.80 6.74 7.52 3.06 0.18 1.21
1937 -35.03 -58.01 2.75 0.23 1.56 0.31 3.10
1938 31.12 32.80 6.13 5.53 6.23 -0.02 -2.78
1939 -0.41 0.35 3.97 5.94 4.52 0.02 -0.48
1940 -9.78 -5.16 3.39 6.09 2.96 0.00 0.96
1941 -11.59 -9.00 2.73 0.93 0.50 0.06 9.72
1942 20.34 44.51 2.60 3.22 1.94 0.27 9.29
1943 25.90 88.37 2.83 2.08 2.81 0.35 3.16
1944 19.75 53.72 4.73 2.81 1.80 0.33 2.11
1945 36.44 73.61 4.08 10.73 2.22 0.33 2.25
1946 -8.07 -11.63 1.72 -0.10 1.00 0.35 18.16
1947 5.71 0.92 -2.34 -2.62 0.91 0.50 9.01
1948 5.50 -2.11 4.14 3.40 1.85 0.81 2.71
1949 18.79 19.75 3.31 6.45 2.32 1.10 -1.80
1950 31.71 38.75 2.12 0.06 0.70 1.20 5.79
1951 24.02 7.80 -2.69 -3.93 0.36 1.49 5.87
1952 18.37 3.03 3.52 1.16 1.63 1.66 0.88
1953 -0.99 -6.49 3.41 3.64 3.23 1.82 0.62
1954 52.62 60.58 5.39 7.19 2.68 0.86 -0.50
1955 31.56 20.44 0.48 -1.29 -0.65 1.57 0.37
1956 6.56 4.28 -6.81 -5.59 -0.42 2.46 2.86
1957 -10.78 -14.57 8.71 7.46 7.84 3.14 3.02
1958 43.36 64.89 -2.22 -6.09 -1.29 1.54 1.76
1959 11.96 16.40 -0.97 -2.26 -0.39 2.95 1.50
1960 0.47 -3.29 9.07 13.78 11.76 2.66 1.48
1961 26.89 32.09 4.82 0.97 1.85 2.13 0.67
1962 -8.73 -11.90 7.95 6.89 5.56 2.73 1.22
1963 22.80 23.57 2.19 1.21 1.64 3.12 1.65
1964 16.48 23.52 4.77 3.51 4.04 3.54 1.19
1965 12.45 41.75 -0.46 0.71 1.02 3.93 1.92
1966 -10.06 -7.01 0.20 3.65 4.69 4.76 3.35
1967 23.98 83.57 -4.95 -9.18 1.01 4.21 3.04
1968 11.06 35.97 2.57 -0.26 4.54 5.21 4.72
1969 -8.50 -25.05 -8.09 -5.07 -0.74 6.58 6.11
1970 4.01 -17.43 18.37 12.11 16.86 6.52 5.49
1971 14.31 16.50 11.01 13.23 8.72 4.39 3.36
1972 18.98 4.43 7.26 5.69 5.16 3.84 3.41
1973 -14.66 -30.90 1.14 -1.11 4.61 6.93 8.80
1974 -26.47 -19.95 -3.06 4.35 5.69 8.00 12.20
1975 37.20 52.82 14.64 9.20 7.83 5.80 7.01
1976 23.84 57.38 18.65 16.75 12.87 5.08 4.81
1977 -7.18 25.38 1.71 -0.69 1.41 5.12 6.77
1978 6.56 23.46 -0.07 -1.18 3.49 7.18 9.03
1979 18.44 43.46 -4.18 -1.23 4.09 10.38 13.31
1980 32.42 39.88 -2.76 -3.95 3.91 11.24 12.40
1981 -4.91 13.88 -1.24 1.86 9.45 14.71 8.94
1982 21.41 28.01 42.56 40.36 29.10 10.54 3.87
1983 22.51 39.67 6.26 0.65 7.41 8.80 3.80
1984 6.27 -6.67 16.86 15.48 14.02 9.85 3.95
1985 32.16 24.66 30.09 30.97 20.33 7.72 3.77
1986 18.47 6.85 19.85 24.53 15.14 6.16 1.13
1987 5.23 -9.30 -0.27 -2.71 2.90 5.47 4.41
1988 16.81 22.87 10.70 9.67 6.10 6.35 4.42
1989 31.49 10.18 16.23 18.11 13.29 8.37 4.65
1990 -3.17 -21.56 6.78 6.18 9.73 7.81 6.11
1991 30.55 44.63 19.89 19.30 15.46 5.60 3.06
1992 7.67 23.35 9.39 8.05 7.19 3.51 2.90
1993 9.99 20.98 13.19 18.24 11.24 2.90 2.75
1994 l.31 3.11 -5.76 -7.77 -5.14 3.90 2.67
<FN>
The asset classes shown on the charts are represented by these indices:
Common stocks--S&P 500 Index, representing widely held common stocks of
industrial, financial, utility and transportation companies
Small company stocks--Dimensional Fund Advisors 9/10 Small Company Fund
Long-term government bonds--20-year U.S. Government Bond
Treasury bills--30-day U.S. Government Bond
Treasury bills--30-day U.S. Treasury Bill
Inflation--Consumer Price Index
As with indices represented on this chart, investment performance will fluctuate
over time and is not guaranteed. Treasury bills and government bonds are
guaranteed by the full faith and credit of the U.S. Government and, if held to
maturity, offer a fixed rate of return and principal value. The prices of small
company stocks are generally more volatile than those of large company stocks.
NOTE: The S&P is an unmanaged index, and individuals cannot invest directly into
the index. Source: (C) Stocks, Bonds, and Inflation 1995 Yearbook,(TM) Ibbotson
Associates, Chicago. Updates work annually by Roger G. Ibbotson and Rex A
Sinquefield. Used with permission. All right reserved.
</FN>
</TABLE>
Of course, investment decisions should not be based entirely on the past
performances of different investment products. Past performance does not
guarantee future results with any investment product. Investors should also
understand and weigh the risks, which then allows them to define their personal
risk tolerance.
When assessing risk, one mistake an investor makes is to allow concerns over
short-term volatility to influence long-term investment decisions. For instance,
today's weather should not deter planning next week's picnic. So why should the
fluctuations of daily investment values be a consideration for future financial
needs?
When comparing stock performance over longer periods, the risk appears more
tolerable. The two bar charts to the right illustrate stock-market returns for
one-year holding periods and ten-year holding periods. As might be expected,
returns for one-year periods are erratic; some years are very good, some poor.
Now look at results for ten-year periods. Since 1925, only two ten-year periods
(1929-1938 and 1930-1939) experienced negative results. These periods, of
course, reflect the Great Depression.
Chart - Annual Returns, 1926-1994
The chart described below illustrates the stock-market returns for a one-year
holding period.
Year-by-Year
Total Returns
(in percent)
From 1926 to 1994
Large
Company
Year Stocks
1926 11.62
1927 37.49
1928 43.61
1929 -8.42
1930 -24.90
1931 -43.34
1932 -8.19
1933 53.99
1934 -1.44
1935 47.67
1936 33.92
1937 -35.03
1938 31.12
1939 -0.41
1940 -9.78
1941 -11.59
1942 20.34
1943 25.90
1944 19.75
1945 36.44
1946 -8.07
1947 5.71
1948 5.50
1949 18.79
1950 31.71
1951 24.02
1952 18.37
1953 -0.99
1954 52.62
1955 31.56
1956 6.56
1957 -10.78
1958 43.36
1959 11.96
1960 0.47
1961 26.89
1962 -8.73
1963 22.80
1964 16.48
1965 12.45
1966 -10.06
1967 23.98
1968 11.06
1969 -8.50
1970 4.01
1971 14.31
1972 18.98
1973 -14.66
1974 -26.47
1975 37.20
1976 23.84
1977 -7.18
1978 6.56
1979 18.44
1980 32.42
1981 -4.91
1982 21.41
1983 22.51
1984 6.27
1985 32.16
1986 18.47
1987 5.23
1988 16.81
1989 31.49
1990 -3.17
1991 30.55
1992 7.67
1993 9.99
1994 l.31
Chart - Compound Annual Returns for Ten-year Holding Periods, 1926-1994
The chart defined below illustrates the stock-market returns for a ten-year
holding period.
Compound Annual Returns for
Ten-Year Holding Periods
(percent per annum)
From 1926 to 1994
Large
Company
Period Stocks
1926-1935 5.86
1927-1936 7.81
1928-1937 0.02
1929-1938 -0.89
1930-1939 -0.05
1931-1940 1.80
1932-1941 6.43
1933-1942 9.35
1934-1943 7.17
1935-1944 9.28
1936-1945 8.42
1937-1946 4.41
1938-1947 9.62
1939-1948 7.26
1940-1949 9.17
1941-1950 13.38
1942-1951 17.28
1943-1952 17.09
1944-1953 14.31
1945-1954 17.12
1946-1955 16.69
1947-1956 18.43
1948-1957 16.44
1949-1958 20.06
1950-1959 19.35
1951-1960 16.16
1952-1961 16.43
1953-1962 13.44
1954-l963 15.91
1955-1964 12.82
1956-1965 11.06
1957-1966 9.20
1958-1967 12.85
1959-1968 10.00
1960-1969 7.81
1961-1970 8.18
1962-1971 7.06
1963-1972 9.93
1964-1973 6.00
1965-1974 1.24
1966-1975 3.27
1967-1976 6.63
1968-1977 3.59
1969-1978 3.16
1970-1979 5.86
1971-1980 8.44
1972-1981 6.47
1973-1982 6.68
1974-1983 10.61
1975-1984 14.76
1976-1985 14.33
1977-1986 13.82
1978-1987 15.26
1979-1988 16.33
1980-1989 17.55
1981-1990 13.93
1982-1991 17.59
1983-1992 16.19
1984-1993 14.94
1985-1994 14.40
When deciding if and how much to invest in stocks, several factors need to be
considered. Among these factors are:
* the time horizon for each goal
* the purpose of the investment
* the current size of the portfolio
* the holdings in a portfolio
* your individual tax situation
* your risk tolerance
Your registered representative can also help determine a suitable asset
allocation strategy.
After contemplating these factors, Wall Street and its potential effect on a
financial portfolio will no longer be a part of the unknown.
Talk to your registered representative about the possible advantages of adding,
or expanding, your stock investment today. Both your registered representative
and the Wall Street bear can be friendly.
Source: (C) Stocks, Bonds, and Inflation 1995 Yearbook,(TM) Ibbotson Associates,
Chicago. Updates work annually by Roger G. Ibbotson and Rex A Sinquefield. Used
with permission. All right reserved.
<PAGE>
<TABLE>
<CAPTION>
April 30, 1995
STATEMENTS OF ASSETS AND LIABILITIES
(unaudited)
Princor Princor Princor Capital
Balanced Blue Chip Accumulation
GROWTH FUNDS Fund, Inc. Fund, Inc. Fund, Inc.
<S> <C> <C> <C>
Assets
Investment in securities -- at value (cost -- $50,937,294;
$24,521,555; $276,561,881; $91,952,625; $103,483,032;
and $108,930,114, respectively) (Note 4) $ 54,904,009 $ 30,273,720 $ 310,382,524
Cash 2,741 4,503 5,785
Receivables:
Dividends and interest 286,114 55,231 535,873
Investment securities sold 157,310 - 898,447
Capital Stock sold 17,982 36,363 61,052
Other assets 6,421 1,923 38,721
Total Assets 55,374,577 30,371,740 311,922,402
Liabilities
Accrued expenses 71,131 25,021 209,159
Payables:
Investment securities purchased 532,721 - 5,584,769
Capital Stock reacquired 10,187 71,464 75,352
Total Liabilities 614,039 96,485 5,869,280
Net Assets Applicable to Outstanding Shares $ 54,760,538 $ 30,275,255 $ 306,053,122
Capital Stock (par value: Princor World Fund, Inc. - $.10 a
share; Others - $.01 a share)
Shares authorized 100,000,000 100,000,000 100,000,000
Shares issued and outstanding 4,310,779 2,275,162 14,420,356
Net Assets Consist of:
Capital Stock $ 43,108 $ 22,752 $ 144,204
Additional paid-in capital 49,979,467 24,527,866 265,993,710
Accumulated undistributed net investment income 184,627 46,859 1,785,454
Accumulated undistributed net realized gain (loss) from:
Investment transactions 586,621 (74,387) 4,309,111
Foreign currency transactions - - -
Net unrealized appreciation of investments 3,966,715 5,752,165 33,820,643
Net unrealized appreciation on translation of assets and
liabilities in foreign currencies - - -
Total Net Assets $ 54,760,538 $ 30,275,255 $ 306,053,122
Net Asset Value Per Share:
Class A: Net Assets $ 54,364,229 $ 29,760,834 $305,132,879
Shares issued and outstanding 4,279,516 2,236,416 14,376,836
Net asset value per share $ 12.70 $ 13.31 $ 21.22
Class B: Net Assets $ 396,309 $ 514,421 $ 920,243
Shares issued and outstanding 31,263 38,746 43,520
Net asset value per share(1) $ 12.68 $ 13.28 $ 21.15
<FN>
(1) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
</FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
April 30, 1995
STATEMENTS OF ASSETS AND LIABILITIES
(unaudited)
Princor Princor Princor
Emerging Growth Growth World
GROWTH FUNDS Fund, Inc. Fund, Inc. Fund, Inc.
<S> <C> <C> <C>
Assets
Investment in securities -- at value (cost -- $50,937,294;
$24,521,555; $276,561,881; $91,952,625; $103,483,032;
and $108,930,114, respectively) (Note 4)...................... $115,914,924 $140,191,970 $116,509,639
Cash ............................................................ 1,530 7,838 10,533
Receivables:
Dividends and interest........................................ 187,905 175,143 625,901
Investment securities sold.................................... -- -- 265,241
Capital Stock sold............................................ 287,645 242,273 131,687
Other assets..................................................... 6,621 14,388 7,231
Total Assets 116,398,625 140,631,612 117,550,232
Liabilities
Accrued expenses................................................. 141,036 124,027 206,402
Payables:
Investment securities purchased............................... -- -- --
Capital Stock reacquired...................................... 69,720 116,878 102,699
Total Liabilities 210,756 240,905 309,101
Net Assets Applicable to Outstanding Shares .................. $116,187,869 $140,390,707 $117,241,131
Capital Stock (par value: Princor World Fund, Inc. - $.10 a
share; Others - $.01 a share)
Shares authorized................................................ 100,000,000 100,000,000 100,000,000
Shares issued and outstanding.................................... 4,356,508 4,346,741 17,420,858
Net Assets Consist of:
Capital Stock.................................................... $ 43,565 $ 43,467 $ 1,742,086
Additional paid-in capital...................................... 91,126,515 101,665,393 103,708,334
Accumulated undistributed net investment income................. 160,757 458,275 (143,058)
Accumulated undistributed net realized gain (loss) from:
Investment transactions ..................................... 894,733 1,514,634 4,232,703
Foreign currency transactions................................. -- -- 114,632
Net unrealized appreciation of investments....................... 23,962,299 36,708,938 7,579,525
Net unrealized appreciation on translation of assets and
liabilities in foreign currencies............................. -- -- 6,909
Total Net Assets $116,187,869 $140,390,707 $117,241,131
Net Asset Value Per Share:
Class A: Net Assets............................................. $112,987,670 $138,002,536 $115,721,610
Shares issued and outstanding........................... 4,236,247 4,272,565 17,194,300
Net asset value per share............................... $26.67 $32.30 $6.73
Class B: Net Assets ............................................. $3,200,199 $2,388,171 $1,519,521
Shares issued and outstanding........................... 120,261 74,176 226,558
Net asset value per share(1)............................ $26.61 $32.20 $6.71
<FN>
(1) Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended April 30, 1995
STATEMENTS OF OPERATIONS
(unaudited)
Princor Princor Princor Capital
Balanced Blue Chip Accumulation
GROWTH FUNDS Fund, Inc. Fund, Inc. Fund, Inc.
<S> <C> <C> <C>
Net Investment Income
Income:
Dividends $ 452,783 $ 378,692 $ 3,950,733
Withholding tax on foreign dividends - - -
Interest 766,049 69,314 275,362
Total Income 1,218,832 448,006 4,226,095
Expenses:
Management and investment advisory fees (Note 3) 157,748 70,319 646,123
Distribution and shareholder servicing fees--Class A (Note 3). 65,591 35,022 176,013
Distribution and shareholder servicing fees--Class B (Note 3). 526 527 1,024
Transfer and administrative services (Note 3) 143,198 73,569 319,918
Registration fees--Class A 11,365 8,990 17,240
Registration fees--Class B 88 102 120
Custodian fees 7,350 5,049 8,555
Auditing and legal fees 3,809 3,651 4,796
Directors' fees 3,734 3,729 3,842
Other 4,030 2,662 19,116
Total Expenses 397,439 203,620 1,196,747
Net Investment Income 821,393 244,386 3,029,348
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency
Net realized gain from:
Investment transactions 586,600 297,050 4,391,308
Foreign currency transactions - - -
Net increase (decrease) in unrealized appreciation/
depreciation on:
Investments 810,335 1,643,872 6,340,008
Translation of assets and liabilities in foreign currencies - - -
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency 1,396,935 1,940,922 10,731,316
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 2,218,328 $ 2,185,308 $13,760,664
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended April 30, 1995
STATEMENTS OF OPERATIONS
(unaudited)
Princor Princor Princor
Emerging Growth Growth World
GROWTH FUNDS Fund, Inc. Fund, Inc. Fund, Inc.
<S> <C> <C> <C>
Net Investment Income
Income:
Dividends..................................................... $ 594,527 $1,062,575 $ 1,293,877
Withholding tax on foreign dividends.......................... - - (114,249)
Interest...................................................... 429,524 447,126 165,725
Total Income 1,024,051 1,509,701 1,345,353
Expenses:
Management and investment advisory fees (Note 3) ........... 321,816 300,071 409,029
Distribution and shareholder servicing fees--Class A (Note 3). 123,156 151,979 136,581
Distribution and shareholder servicing fees--Class B (Note 3). 3,735 3,223 2,491
Transfer and administrative services (Note 3)................. 330,645 292,018 313,404
Registration fees--Class A................................... 18,025 16,320 19,814
Registration fees--Class B.................................... 108 93 152
Custodian fees ............................................... 5,562 4,534 76,571
Auditing and legal fees ...................................... 3,809 3,907 1,409
Directors' fees .............................................. 3,844 3,842 3,814
Other ........................................................ 4,905 6,858 6,960
Total Expenses 815,605 782,845 970,225
Net Investment Income 208,446 726,856 375,128
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency
Net realized gain from:
Investment transactions....................................... 901,292 1,516,035 4,240,582
Foreign currency transactions................................. - - 114,632
Net increase (decrease) in unrealized appreciation/
depreciation on:
Investments................................................... 6,253,693 6,136,469 (12,258,156)
Translation of assets and liabilities in foreign currencies - - (2,259)
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency 7,154,985 7,652,504 (7,905,201)
Net Increase (Decrease) in Net Assets
Resulting from Operations $7,363,431 $8,379,360 $ (7,530,073)
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended April 30, 1995
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
Princor Princor
Balanced Blue Chip
GROWTH FUNDS Fund, Inc. Fund, Inc.
Six Months Year Six Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Operations
Net investment income............................................ $ 821,393 $ 1,271,900 $ 244,386 $ 431,588
Net realized gain (loss) from investment transactions............ 586,600 234,600 297,050 (288,180)
Net realized gain (loss) from foreign currency transactions...... - - - -
Net increase (decrease) in unrealized appreciation/depreciation
on investments and translation of assets and liabilities in
foreign currencies............................................ 810,335 (1,115,430) 1,643,872 1,524,678
Net Increase (Decrease) in Net Assets
Resulting from Operations 2,218,328 391,070 2,185,308 1,668,086
Dividends and Distributions to Shareholders
From net investment income:
Class A....................................................... (766,370) (1,470,992) (237,515) (541,987)
Class B....................................................... (1,609) - (733) -
(767,979) (1,470,992) (238,248) (541,987)
From net realized gain on investments and foreign currency transactions:
Class A....................................................... (234,514) (1,646,619) - -
Total Distributions (1,002,493) (3,117,611) (238,248) (541,987)
Capital Share Transactions (Note 5)
Shares sold:
Class A....................................................... 4,352,375 24,138,081 2,756,475 5,228,761
Class B....................................................... 390,178 - 502,689 -
Shares issued in reinvestment of dividends and distributions:
Class A....................................................... 786,411 2,123,538 194,873 535,883
Class B....................................................... 1,609 - 678 -
Shares redeemed:
Class A....................................................... (5,348,733) (10,121,469) (2,371,514) (3,403,936)
Class B....................................................... (3,111) - (1,142) -
Net Increase in Net Assets from
Capital Share Transactions 178,729 16,140,150 1,082,059 2,360,708
Total Increase 1,394,564 13,413,609 3,029,119 3,486,807
Net Assets
Beginning of period.............................................. 53,365,974 39,952,365 27,246,136 23,759,329
End of period (including undistributed net investment
income as set forth below).................................... $54,760,538 $53,365,974 $30,275,255 $27,246,136
Undistributed Net Investment Income ............................. $ 184,627 $ 131,213 $ 46,859 $ 40,721
See accompanying notes.
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended April 30, 1995
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
Princor Capital Princor
Accumulation Emerging Growth
GROWTH FUNDS Fund, Inc. Fund, Inc.
Six Months Year Six Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Operations
Net investment income............................................ $ 3,029,348 $ 5,353,058 $ 208,446 $ 12,330
Net realized gain (loss) from investment transactions............ 4,391,308 4,676,679 901,292 541,397
Net realized gain (loss) from foreign currency transactions...... - - - -
Net increase (decrease) in unrealized appreciation/depreciation
on investments and translation of assets and liabilities in
foreign currencies............................................ 6,340,008 7,375,728 6,253,693 4,047,834
Net Increase (Decrease) in Net Assets
Resulting from Operations 13,760,664 17,405,465 7,363,431 4,601,561
Dividends and Distributions to Shareholders
From net investment income:
Class A....................................................... (2,708,099) (5,289,873) (59,879) -
Class B....................................................... (78) - (84) -
(2,708,177) (5,289,873) (59,963) -
From net realized gain on investments and foreign currency transactions:
Class A....................................................... (4,755,179) (16,954,587) (544,422) (193,029)
Total Distributions (7,463,356) (22,244,460) (604,385) (193,029)
Capital Share Transactions (Note 5)
Shares sold:
Class A....................................................... 17,078,399 52,028,708 21,336,780 51,667,572
Class B....................................................... 910,496 - 3,129,992 -
Shares issued in reinvestment of dividends and distributions:
Class A....................................................... 7,318,373 21,826,872 589,970 188,206
Class B....................................................... 78 - 84 -
Shares redeemed:
Class A....................................................... (11,505,850) (23,067,558) (8,565,751) (11,967,357)
Class B....................................................... (10,706) - (26,880) -
Net Increase in Net Assets from
Capital Share Transactions 13,790,790 50,788,022 16,464,195 39,888,421
Total Increase 20,088,098 45,949,027 23,223,241 44,296,953
Net Assets
Beginning of period.............................................. 285,965,024 240,015,997 92,964,628 48,667,675
End of period (including undistributed net investment
income as set forth below).................................... $306,053,122 $285,965,024 $116,187,869 $92,964,628
Undistributed Net Investment Income ............................ $ 1,785,454$ 1,464,283 $ 160,757 $ 12,274
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended April 30, 1995
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
Princor Princor
Growth World
GROWTH FUNDS Fund, Inc. Fund, Inc.
Six Months Year Six Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Operations
Net investment income............................................ $ 726,856 $ 922,413 $ 375,128 $ 95,445
Net realized gain (loss) from investment transactions............ 1,516,035 2,368,804 4,240,582 2,972,274
Net realized gain (loss) from foreign currency transactions...... - - 114,632 (101,324)
Net increase (decrease) in unrealized appreciation/depreciation
on investments and translation of assets and liabilities in
foreign currencies............................................ 6,136,469 5,679,560 (12,260,415) 4,616,059
Net Increase (Decrease) in Net Assets
Resulting from Operations 8,379,360 8,970,777 (7,530,073) 7,582,454
Dividends and Distributions to Shareholders
From net investment income:
Class A....................................................... (560,707) (897,562) (571,155) (212,187)
Class B....................................................... (552) - (1,107) -
(561,259) (897,562) (572,262) (212,187)
From net realized gain on investments and foreign currency transactions:
Class A....................................................... (2,370,007) (4,843,338) (2,940,762) (411,302)
Total Distributions (2,931,266) (5,740,900) (3,513,024) (623,489)
Capital Share Transactions (Note 5)
Shares sold:
Class A....................................................... 21,175,868 41,918,761 17,314,734 61,902,666
Class B....................................................... 2,321,876 - 1,495,227 -
Shares issued in reinvestment of dividends and distributions:
Class A....................................................... 2,835,133 5,507,426 3,389,753 537,492
Class B....................................................... 552 - 1,107 -
Shares redeemed:
Class A....................................................... (7,736,079) (14,344,269) (9,707,686) (17,305,679)
Class B....................................................... (17,404) - (20,691) -
Net Increase in Net Assets from
Capital Share Transactions 18,579,946 33,081,918 12,472,444 45,134,479
Total Increase 24,028,040 36,311,795 1,429,347 52,093,444
Net Assets
Beginning of period.............................................. 116,362,667 80,050,872 115,811,784 63,718,340
End of period (including undistributed net investment
income as set forth below).................................... $140,390,707 $116,362,667 $117,241,131 $115,811,784
Undistributed Net Investment Income ............................ $ 458,275 $ 292,678 $ (143,058)$ 54,076
See accompanying notes.
</TABLE>
<PAGE>
April 30, 1995
NOTES TO FINANCIAL STATEMENTS
(unaudited)
Princor Balanced Fund, Inc.
Princor Blue Chip Fund, Inc.
Princor Capital Accumulation Fund, Inc.
Princor Emerging Growth Fund, Inc.
Princor Growth Fund, Inc.
Princor World Fund, Inc.
Note 1 -- Significant Accounting Policies
Princor Balanced Fund, Inc., Princor Blue Chip Fund, Inc., Princor Capital
Accumulation Fund, Inc., Princor Emerging Growth Fund, Inc., Princor Growth
Fund, Inc. and Princor World Fund, Inc. (the "Growth Funds") are registered
under the Investment Company Act of 1940, as amended, as open-end diversified
management investment companies and operate in the mutual fund industry.
On December 5, 1994, the initial purchase of Class B shares of the Growth
Funds was made by Princor Management Corporation (See Note 3). All shares
outstanding as of the close of business on December 2, 1994 have been classified
as Class A shares. Effective December 9, 1994, the Growth Funds began offering
to the public both Class A and Class B shares. Certain Class A shares are sold
with an initial sales charge based on declining rates which begin at 4.75% of
the offering price. Class B shares are sold without an initial sales charge, but
bear a higher ongoing distribution fee and are subject to a declining contingent
deferred sales charge ("CDSC") of up to 4% on certain redemptions redeemed
within six years of purchase. Both classes of shares for each fund represent
interests in the same portfolio of investments and will vote together as a
single class except where required by law or as determined by their respective
Boards of Directors. In addition, the Board of Directors of each fund declare
separate dividends on each class of shares.
The Growth Funds allocate daily, all income, expenses (other than
class-specific expenses), and realized and unrealized gains or losses to each
class of shares based upon the relative proportion of the value of shares
outstanding of each class. Class-specific expenses, which include distribution
and shareholder servicing fees and any other items specifically attributable to
a particular class, are charged directly to such class.
The Growth Funds value securities for which market quotations are readily
available at market value, which is determined using the last reported sale
price or, if no sales are reported, as is regularly the case for some securities
traded over-the-counter, the last reported bid price. When reliable market
quotations are not considered to be readily available, which may be the case,
for example, with respect to certain debt securities, preferred stocks and
foreign securities, the investments are valued by using market quotations,
prices provided by market makers or estimates of market values obtained from
yield data and other factors relating to instruments or securities with similar
characteristics in accordance with procedures established in good faith by each
fund's Board of Directors. Securities with remaining maturities of 60 days or
less are valued at amortized cost, which approximates market.
With respect to Princor World Fund, Inc., the value of foreign securities
in foreign currency amounts is expressed in U.S. dollars at the closing daily
rate of exchange. The identified cost of the portfolio holdings is translated at
approximate rates prevailing when acquired. Income and expense amounts are
translated at approximate rates prevailing when received or paid, with daily
accruals of such amounts reported at approximate rates prevailing at the date of
valuation.
Since the carrying amount of the foreign securities of the fund is
determined based on the exchange rate and market values at the close of the
period, it is not practicable to isolate that portion of the results of
operations arising as a result of changes in the foreign exchange rates from the
fluctuations arising from changes in the market prices of securities during the
period.
The Growth Funds record investment transactions generally one day after the
trade date. The identified cost basis has been used in determining the net
realized gain or loss from investment transactions and unrealized appreciation
or depreciation on investments. Dividends are taken into income on an accrual
basis as of the ex-dividend date and interest income is recognized on an accrual
basis.
Dividends and distributions to shareholders are recorded on the
ex-dividend date.
Effective November 1, 1993, the Funds adopted Statement of Position 93-2,
"Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies." The
amount of dividends and distributions to shareholders from net investment income
and net realized gain from investments and foreign currency transactions is
determined in accordance with federal income tax regulations, which may differ
from generally accepted accounting principles. To the extent these "book/tax"
differences are permanent in nature (i.e. that they result from other than
timing of recognition - "temporary"), such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. No reclassifications were made for
the six months ended April 30, 1995. The reclassifications for the year ended
October 31, 1994 did not materially impact the financial statements and had no
effect on net investment income, net realized gain (loss) or net assets at
October 31, 1994.
Note 2 -- Federal Income Taxes
No provision for federal income taxes is considered necessary because each
fund is qualified as a "regulated investment company" under the Internal Revenue
Code and intends to distribute each year substantially all of its net investment
income and realized capital gains to shareholders. The cost of investments for
federal income tax reporting purposes is approximately the same as that for
financial reporting purposes.
Note 3 -- Management Agreement and Transactions With Affiliates
The Growth Funds have agreed to pay investment advisory and management fees
to Princor Management Corporation (wholly owned by Princor Financial Services
Corporation, a subsidiary of Principal Mutual Life Insurance Company) (the
"Manager") computed at an annual percentage rate of each fund's average daily
net assets. The annual rate used in this calculation for Princor Blue Chip Fund,
Inc., Princor Capital Accumulation Fund, Inc. and Princor Growth Fund, Inc. is
.50% of the first $100 million of the fund's average daily net assets, .45% of
the next $100 million of the fund's average daily net assets and .40% of the
next $100 million of the fund's average daily net assets. With respect to
Princor Balanced Fund, Inc. , the annual rate is .60% of the first $100 million
of the fund's average daily net assets. With respect to Princor Emerging Growth
Fund, Inc., the annual rate is .65% of the first $100 million of the fund's
average daily net assets and .60% of the next $100 million of the fund's average
daily net assets.With respect to Princor World Fund, Inc., the annual rate is
.75% of the first $100 million of the fund's average daily net assets and .70%
of the next $100 million of the fund's average daily net assets. The Growth
Funds also reimburse the Manager for transfer and administrative services,
including the cost of accounting, data processing, supplies and other services
rendered.
The Manager has agreed to reimburse the Growth Funds annually for their
total expenses (excluding brokerage commissions, interest and taxes) in excess
of limits prescribed by any state in which the Growth Funds' shares are offered
for sale (currently 2 1/2% of the first $30 million of each fund's average
annual net assets, 2% of the next $70 million of such assets and 1 1/2% of such
assets in excess thereof).
Princor Financial Services Corporation, as principal underwriter, receives
proceeds of any CDSC on certain Class B share redemptions within six years of
purchase. The charge is based on declining rates, which begin at 4.00% of the
lesser of the current market value or the cost of shares being redeemed. Princor
Financial Services Corporation also retains sales charges on sales of Class A
shares of the Growth Funds. The aggregate amount of Class A sales charges
retained, by fund, for the period ended April 30, 1995 were as follows:
Class A
Princor Balanced Fund, Inc. $ 142,801
Princor Blue Chip Fund, Inc. 68,976
Princor Capital Accumulation Fund, Inc. 312,361
Princor Emerging Growth Fund, Inc. 605,384
Princor Growth Fund, Inc. 597,354
Princor World Fund, Inc. 444,800
No brokerage commissions were paid by the Growth Funds to Princor Financial
Services Corporation during the periods. Brokerage commissions were paid to
other affiliates by the following funds for the six months ended April 30, 1995
and year ended October 31, 1994, respectively: Princor Capital Accumulation
Fund, Inc. $4,110 and $6,922, Princor Emerging Growth Fund, Inc. $600 and $414,
Princor Growth Fund, Inc. $0 and $500 and Princor Balanced Fund, Inc. $857 and
$0.
The Growth Funds bear distribution and shareholder servicing fees with
respect to Class A shares computed at an annual rate of up to 0.25% of the
average daily net assets attributable to Class A shares of each fund. Effective
December 9, 1994, the Growth Funds adopted a distribution plan with respect to
Class B shares that provides for distribution and shareholder servicing fees
computed at an annual rate of up to 1.00% of the average daily net assets
attributable to Class B shares of each fund. Distribution and shareholder
servicing fees are paid to Princor Financial Services Corporation; a portion of
the fees are subsequently remitted to retail dealers. Pursuant to the
distribution agreement, fees unused by the principal underwriter at the end of
the fiscal year are returned to the Growth Funds.
At April 30, 1995, Principal Mutual Life Insurance Company and benefit
plans sponsored on behalf of Principal Mutual Life Insurance Company owned
shares of the Growth Funds as follows:
Class A
Princor Balanced Fund, Inc. 748,083
Princor Blue Chip Fund, Inc. 724,971
Princor Capital Accumulation Fund, Inc. 6,558,530
Princor Emerging Growth Fund, Inc. 46,736
Princor Growth Fund, Inc. 37,575
Princor World Fund, Inc. 3,500,433
At April 30, 1995, Princor Management Corporation owned shares of the
Growth Funds as follows:
Class B
Princor Balanced Fund, Inc. 84
Princor Blue Chip Fund, Inc. 83
Princor Capital Accumulation Fund, Inc. 52
Princor Emerging Growth Fund, Inc. 42
Princor Growth Fund, Inc. 34
Princor World Fund, Inc. 148
Note 4 -- Investment Transactions
For the six months ended April 30, 1995, the cost of investment securities
purchased and proceeds from investment securities sold (not including short-term
investments and U.S. government securities) by the Growth Funds were as follows:
Purchases Sales
Princor Balanced Fund, Inc. $ 7,580,812 $ 8,551,100
Princor Blue Chip Fund, Inc. 2,532,550 1,717,468
Princor Capital Accumulation Fund, Inc. 78,768,184 74,705,130
Princor Emerging Growth Fund, Inc. 16,795,301 3,125,035
Princor Growth Fund, Inc. 12,900,294 2,425,585
Princor World Fund, Inc. 33,575,774 25,831,874
At April 30, 1995, net unrealized appreciation of investments by the Growth
Funds was composed of the following:
Net Unrealized
Gross Unrealized Appreciation
Appreciation (Depreciation) of Investments
Princor Balanced Fund, Inc. $ 5,310,043 $ (1,343,328) $ 3,966,715
Princor Blue Chip Fund, Inc. 6,469,440 (717,275) 5,752,165
Princor Capital
Accumulation Fund, Inc. 43,058,619 (9,237,976) 33,820,643
Princor Emerging
Growth Fund, Inc. 28,407,122 (4,444,823) 23,962,299
Princor Growth Fund, Inc. 40,429,505 (3,720,567) 36,708,938
Princor World Fund, Inc. 17,203,034 (9,623,509) 7,579,525
At April 30, 1995, Princor Balanced Fund, Inc., Princor Emerging Growth
Fund, Inc., Princor Growth Fund, Inc. and Princor World Fund, Inc. held the
following securities which may require registration under the Securities Act of
1933 or an exemption therefrom in order to effect a sale in the ordinary course
of business.
<TABLE>
<CAPTION>
Value at Value as a
Date of April 30, Percentage of
Fund Security Description Acquisition Cost 1995 Net Assets
<S> <C> <C> <C> <C> <C>
Princor Balanced Federal-Mogul Corp.; Series D
Fund, Inc. Convertible Preferred Stock 10/15/92 $450,450 $ 428,025 .78%
Princor Emerging Ciba-Geigy Corp.; Exchangeable
Growth Fund, Inc. Subordinated Debentures 3/20/91 350,000 320,688 .28%
Metalclad Corp.; Convertible
Subordinated Debentures 6/2/92 425,000 183,813 .16%
Sierra On Line;
Convertible Subordinated Debentures 8/15/94 458,750 725,000 .62%
8/17/94 447,125 710,500 .61%
1,940,001 1.67%
Princor Growth Ciba-Geigy Corp.; Exchangeable
Fund, Inc. Subordinated Debentures 3/20/91 500,000 458,125 .33%
Metalclad Corp.; Convertible
Subordinated Debentures 6/2/92 250,000 108,125 .08%
566,250 .41%
Princor World
Fund, Inc. Koninklijke KNP BT NV 9/21/88 401,467 483,333 .41%
5/11/90 13,730 14,500 .02%
10/25/91 98,606 129,895 .11%
11/13/91 99,491 129,895 .11%
Royal Plastics Group 11/23/94 531,509 692,650 .59%
1,450,273 1.24%
</TABLE>
The Growth Funds' investments are with various issuers in various
industries. The Schedules of Investments contained herein summarize
concentrations of credit risk by issuer and industry except for Princor World
Fund, Inc. which is summarized by country, industry and issuer.
<TABLE>
<CAPTION>
Note 5 -- Capital Share Transactions
Transactions in Capital Stock by fund were as follows:
Princor Princor Blue Princor Capital
Balanced Fund, Inc. Chip Fund, Inc. Accumulation Fund, Inc.
Six Months Ended April 30, 1995:
Shares sold:
<S> <C> <C> <C>
Class A ......................................... 354,069 218,019 843,448
Class B* ........................................ 31,385 38,780 44,023
Shares issued in reinvestment of dividends and
distributions:
Class A ........................................... 64,597 15,562 376,441
Class B* .......................................... 129 52 4
Shares redeemed:
Class A ......................................... (433,231) (184,942) (568,705)
Class B* ........................................ (251) (86) (507)
Net Increase 16,698 87,385 694,704
Year Ended October 31, 1994:
Shares sold:
Class A ......................................... 1,911,481 439,187 2,560,201
Shares issued in reinvestment of dividends and
distributions:
Class A ......................................... 168,881 45,517 1,086,526
Shares redeemed:
Class A ......................................... (798,332) (286,127) (1,131,319)
Net Increase 1,282,030 198,577 2,515,408
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Princor Emerging Princor Princor
Growth Fund, Inc. Growth Fund, Inc. World Fund, Inc.
Six Months Ended April 30, 1995:
Shares sold:
<S> <C> <C> <C>
Class A ......................................... 847,518 692,893 2,598,114
Class B* ........................................ 121,278 74,722 229,602
Shares issued in reinvestment of dividends and
distributions:
Class A ........................................... 24,644 97,264 500,570
Class B* .......................................... 3 18 166
Shares redeemed:
Class A ......................................... (342,728) (253,943) (1,473,697)
Class B* ........................................ (1,020) (565) (3,210)
Net Increase 649,695 610,389 1,851,545
Year Ended October 31, 1994:
Shares sold:
Class A ......................................... 2,125,608 1,390,912 8,559,151
Shares issued in reinvestment of dividends and
distributions:
Class A ......................................... 7,985 188,984 78,576
Shares redeemed:
Class A ......................................... (492,355) (475,778) (2,375,849)
Net Increase 1,641,238 1,104,118 6,261,878
<FN>
* Period from December 5, 1994 (date operations commenced) through April
30, 1995.
</FN>
</TABLE>
Note 6 -- Line of Credit
The Growth Funds have an unsecured line of credit with a bank which allows
each fund to borrow up to $500,000. Borrowings are made solely to facilitate the
handling of unusual and/or unanticipated short-term cash requirements. Interest
is charged to each fund, based on its borrowings, at a rate equal to the bank's
prime rate. Additionally, a commitment fee is charged at the annual rate of .25%
on the unused portion of the line of credit. At April 30, 1995, the Growth Funds
had no outstanding borrowings under the line of credit.
<PAGE>
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<PAGE>
SCHEDULES OF INVESTMENTS
GROWTH FUNDS
PRINCOR BALANCED FUND, INC.
Shares
Held Value
Common Stocks (48.31%)
Advertising (0.60%)
Interpublic Group of Cos., Inc. 8,600 $ 326,800
Air Transportation, Scheduled (0.38%)
Southwest Airlines Co. 8,900 205,813
Automotive Rentals, No Drivers (0.54%)
Ryder Systems, Inc. 12,600 294,525
Beverages (1.17%)
Pepsico, Inc. 12,500 520,312
Universal Foods Corp. 3,700 120,250
640,562
Central Reserve Depositories (0.22%)
Paccar, Inc. 2,575 118,450
Combination Utility Services (0.61%)
Cinergy Corp. 9,600 241,200
Scana Corp. 2,200 94,325
335,525
Commercial Banks (9.26%)
AmSouth Bancorp. 21,900 684,375
Banc One Corp. 23,837 703,192
Boatmen's Bancshares, Inc. 28,146 935,854
Chase Manhattan Bank Corp. 8,600 376,250
Chemical Banking Corp. 8,200 342,350
Comerica, Inc. 8,200 235,750
First of America Bank Corp. 4,700 162,738
First Security Corp. 3,700 88,337
First Tennessee National Corp. 3,550 150,875
Firstar Corp. 2,300 66,412
KeyCorp 8,300 222,025
Marshall & Ilsley Corp. 12,300 247,538
Mercantile Bankshares Corp. 22,350 472,144
Meridian Bancorp., Inc. 5,500 174,625
Nationsbank Corp. 4,200 210,000
5,072,465
Communications Equipment (1.17%)
Allen Group, Inc. 3,600 81,450
DSC Communications Corp. 3,900(a) 144,300
General Instrument Corp. 4,000(a) 136,500
Newbridge Networks Corp. 5,100(a) 158,100
Northern Telecom Ltd. 3,300 120,037
640,387
Computer & Data Processing
Services (0.57%)
Microsoft Corp. 3,800(a) 310,650
Computer & Office Equipment (0.96%)
Cabletron Systems, Inc. 2,900(a) 137,750
Hewlett-Packard Co. 2,000 132,250
International Business
Machines Corp. 2,700 255,825
525,825
Construction & Related
Machinery (0.59%)
Caterpillar, Inc. 5,500 $ 321,750
Crude Petroleum & Natural Gas (0.76%)
Texaco, Inc. 6,100 417,088
Dairy Products (0.30%)
Dean Foods Co. 5,800 165,300
Deep Sea Foreign Transportation
of Freight (0.19%)
Overseas Shipholding Group, Inc. 5,300 106,000
Department Stores (1.00%)
Sears, Roebuck & Co. 10,100 547,925
Drugs (2.08%)
American Home Products Corp. 1,900 146,537
Bristol-Myers Squibb Co. 3,500 227,938
Lilly (Eli) & Co. 3,000 224,250
Merck & Co., Inc. 7,700 330,137
Warner-Lambert Co. 2,600 207,350
1,136,212
Eating & Drinking Places (0.48%)
McDonald's Corp. 7,500 262,500
Electric Light & Wiring
Equipment (0.17%)
Cooper Industries 2,400 93,600
Electric Services (2.36%)
American Electric Power Co., Inc. 11,000 360,250
Dominion Resources, Inc. 9,700 354,050
Florida Progress Corp. 3,500 106,750
FPL Group, Inc. 6,800 249,900
Potomac Electric Power Co. 11,400 222,300
1,293,250
Electrical Industrial Apparatus (0.25%)
Emerson Electric Co. 2,000 134,500
Electronic Components &
Accessories (0.31%)
Duracell International, Inc. 3,900 171,600
Electronic Distribution
Equipment (1.28%)
General Electric Co. 12,500 700,000
Engines & Turbines (0.43%)
Cummins Engine Co., Inc. 2,700 120,825
Outboard Marine Corp. 5,100 112,838
233,663
General Industrial Machinery (0.62%)
BW/IP Holdings, Inc.; Class A 5,100 89,887
Goulds Pumps, Inc. 3,800 94,050
Pall Corp. 6,700 156,613
340,550
Grain Mill Products (0.80%)
Ralston-Ralston Purina Group 9,200 437,000
Grocery Stores (0.32%)
American Stores Co. 6,900 176,812
Household Furniture (0.42%)
Masco Corp. 9,100 $ 232,050
Industrial Inorganic Chemicals (0.81%)
Dow Chemical Co. 6,400 444,800
Insurance Agents, Brokers &
Services (0.56%)
Equifax, Inc. 9,400 304,325
Jewelry, Silverware, & Plated
Ware (0.26%)
Jostens, Inc. 7,000 140,875
Medical Instruments & Supplies (0.93%)
Becton, Dickinson & Co. 2,700 150,525
St. Jude Medical, Inc. 5,800 249,400
United States Surgical Corp. 4,900 109,025
508,950
Medical Service & Health
Insurance (1.57%)
AON Corp. 3,900 143,813
Foundation Health Corp. 7,400(a) 205,350
Pacificare Health Systems, Inc.;
Class B 4,700(a) 291,400
Physicians Corp. of America 4,000(a) 71,500
U.S. Healthcare, Inc. 5,500 147,125
859,188
Metal Forgings & Stampings (0.27%)
Newell Co. 6,200 146,475
Metalworking Machinery (0.17%)
Giddings & Lewis 5,100 92,437
Miscellaneous Business Services (0.30%)
Safety-Kleen Corp. 9,700 164,900
Miscellaneous Converted Paper
Products (1.60%)
Avery Dennison Corp. 7,000 284,375
Minnesota Mining & Mfg. Co. 9,900 590,288
874,663
Miscellaneous Electrical Equipment
& Supplies (0.95%)
Motorola, Inc. 9,100 517,562
Miscellaneous Fabricated Metal
Products (0.23%)
Keystone International, Inc. 6,100 128,100
Miscellaneous Shopping Goods
Stores (0.53%)
Toys 'R' Us, Inc. 11,600(a) 292,900
Motor Vehicles & Equipment (1.31%)
Dana Corp. 5,300 136,475
Ford Motor Co. 12,900 348,300
General Motors Corp. 5,200 234,650
719,425
Offices & Clinics of Medical
Doctors (0.39%)
FHP International Corp. 9,100(a) 216,125
Paper Mills (0.43%)
James River Corp. of Virginia 8,700 235,988
Personnel Supply Services (0.50%)
Olsten Corp. 7,984 272,454
Petroleum Refining (1.81%)
Atlantic Richfield Co. 2,900 $ 332,050
Exxon Corp. 7,200 501,300
Lyondell Petrochemical Co. 6,300 156,712
990,062
Photographic Equipment &
Supplies (0.79%)
Eastman Chemical Co. 2,750 156,063
Eastman Kodak Co. 4,800 276,000
432,063
Plastic Materials & Synthetics (0.25%)
Wellman, Inc. 5,100 137,700
Pulp Mills (0.62%)
International Paper Co. 1,800 138,600
Mead Corp. 3,900 201,825
340,425
Railroad Equipment (0.35%)
Trinity Industries, Inc. 4,900 189,262
Sanitary Services (1.72%)
Browning-Ferris Industries, Inc. 7,800 257,400
WMX Technologies, Inc. 25,200 686,700
944,100
Security Brokers & Dealers (0.33%)
Edwards (A.G.), Inc. 7,975 182,428
Soap, Cleaners & Toilet Goods (0.32%)
Avon Products 2,800 177,100
Telephone Communication (1.91%)
AT&T Corp. 13,400 680,050
MCI Communications Corp. 16,900 367,575
1,047,625
Variety Stores (1.46%)
Dayton-Hudson Corp. 6,500 436,313
Wal-Mart Stores, Inc. 15,300 363,375
799,688
Women's Clothing Stores (0.10%)
Charming Shoppes, Inc. 10,200 55,462
Total Common Stocks 26,455,884
Preferred Stocks (3.87%)
Blast Furnace & Basic
Steel Products (0.58%)
Quanex Corp.
Convertible Exchangeable 14,000 316,750
Meat Products (0.82%)
Conagra, Inc.;
Class E Convertible 13,200 450,450
Motor Vehicles & Equipment (2.39%)
Federal-Mogul Corp.;
Series D Convertible 7,800(b) 428,025
Ford Motor Co.;
Series A Convertible 10,000 881,250
1,309,275
Paper Mills (0.08%)
James River Corp. of Virginia;
Series L Convertible Exchangeable 1,000 44,000
Total Preferred Stocks 2,120,475
Bonds (4.09%)
Aircraft & Parts (0.36%)
Rohr Industries, Inc.
Convertible Subordinated
Debentures; 7.00%; 10/1/12 $ 260,000 $ 195,000
Electric Lighting & Wiring
Equipment (0.47%)
Cooper Industries, Inc.
Convertible Subordinated
Debentures; 7.05%; 1/1/15 245,000 253,575
Electrical Industrial Apparatus (0.50%)
Liebert Co.
Convertible Subordinated
Debentures; 8.00%; 11/15/10 110,000 275,413
Engines & Turbines (0.98%)
Outboard Marine Corp.
Convertible Subordinated
Debentures; 7.00%; 7/1/02 500,000 537,500
Lumber & Other Building
Materials (0.73%)
Hechinger Co.
Convertible Subordinated
Debentures; 5.50%; 4/1/12 600,000 398,250
Petroleum Refining (0.64%)
Pennzoil Co.
Senior Exchangeable Debentures;
6.50%; 1/15/03 300,000 351,750
Trucking & Courier Services,
Ex., Air (0.41%)
Builders Transport, Inc.
Convertible Subordinated
Debentures; 6.50%; 5/1/11 306,000 225,675
Total Bonds 2,237,163
U.S. Government Treasury Notes & Bonds (34.35%)
5.13%; 2/28/98 $4,000,000 $ 3,836,247
6.00%; 10/15/99 2,150,000 2,080,798
5.50%; 4/15/00 5,800,000 5,475,559
6.38%; 8/15/02 2,300,000 2,220,937
5.88%; 2/15/04 1,050,000 969,281
7.50%; 2/15/05 1,000,000 1,030,937
8.25%; 5/15/05 750,000 782,109
7.25%; 5/15/16 575,000 563,500
7.50%; 11/15/16 575,000 578,594
7.88%; 2/15/21 750,000 784,453
7.25%; 8/15/22 500,000 490,000
18,812,415
Commercial Paper (9.64%)
Electronic Distribution
Equipment (3.15%)
General Electric Capital Corp.
5.93%;5/5/95 $1,725,000 $ 1,723,863
Life Insurance (2.22%)
Prudential Funding Corp.
5.92%; 5/4/95 1,215,000 1,214,401
Motor Vehicles & Euqipment (2.13%)
Ford Motor Credit Co.
5.91%; 5/1/95 1,165,000 1,165,000
Personal Credit Institutions (2.14%)
Household Finance Corp.
5.90%; 5/2/95 1,175,000 1,174,808
Total Commercial Paper 5,278,072
Total Portfolio Investments (100.26%) 54,904,009
Liabilities, net of cash, receivables
and other assets (-0.26%) (143,471)
Total Net Assets (100.00%) $54,760,538
(a) Non-income producing security - No dividend paid during the period.
(b) Restricted security - See Note 4 to the financial statements
PRINCOR BLUE CHIP FUND, INC.
Shares
Held Value
Common Stocks (93.01%)
Beverages (4.61%)
Coca-Cola Co. 12,600 $ 732,375
Pepsico, Inc. 16,000 666,000
1,398,375
Commercial Banks (4.89%)
Banc One Corp. 15,223 449,078
KeyCorp 12,500 334,375
Torchmark Corp. 7,800 304,200
Wachovia Corp. 11,200 393,400
1,481,053
Commercial Printing (1.28%)
R. R. Donnelley & Sons Co. 11,400 387,600
Computer & Office Equipment (2.93%)
Hewlett-Packard Co. 13,400 886,075
Consumer Products (1.97%)
Philip Morris Cos., Inc. 8,800 596,200
Dairy Products (1.65%)
Dean Foods Co. 17,500 498,750
Drug Stores & Proprietary Stores (2.45%)
Walgreen Co. 15,800 $ 742,600
Drugs (11.52%)
American Home Products Corp. 4,400 339,350
Bristol-Myers Squibb Co. 11,100 722,888
Johnson & Johnson 14,200 923,000
Lilly (Eli) & Co. 4,300 321,425
Merck & Co., Inc. 15,100 647,412
Warner-Lambert Co. 6,700 534,325
3,488,400
Eating & Drinking Places (2.13%)
McDonald's Corp. 18,400 644,000
Electric Services (1.51%)
Dominion Resources, Inc. 12,500 456,250
Electrical Industrial Apparatus (2.82%)
Emerson Electric Co. 12,700 854,075
Electronic Distribution
Equipment (3.63%)
General Electric Co. 19,600 1,097,600
Engineering & Architectural
Services (0.91%)
Dun & Bradstreet Corp. 5,300 276,263
General Industrial Machinery (2.32%)
Pall Corp. 30,000 701,250
Grain Mill Products (2.27%)
Ralston-Ralston Purina Group 14,500 688,750
Industrial Inorganic Chemicals (2.57%)
Dow Chemical Co. 11,200 778,400
Insurance Agents, Brokers &
Services (2.72%)
Equifax, Inc. 25,400 822,325
Medical Instruments & Supplies (2.43%)
Becton, Dickinson & Co. 13,200 735,900
Miscellaneous Business Services (1.46%)
Safety-Kleen Corp. 26,000 442,000
Miscellaneous Converted Paper
Products (2.17%)
Minnesota Mining & Mfg. Co. 11,000 655,875
Miscellaneous Electrical Equipment &
Supplies (3.12%)
Motorola, Inc. 16,600 944,125
Motor Vehicles & Equipment (1.52%)
Ford Motor Co. 17,000 459,000
Paper Mills (1.84%)
Union Camp Corp. 11,100 556,388
Petroleum Refining (7.66%)
Exxon Corp. 13,800 960,825
Mobil Corp. 6,100 578,737
Royal Dutch Petroleum Co. ADR 6,300 781,200
2,320,762
Preserved Fruits & Vegetables (1.87%)
H. J. Heinz Co. 13,500 567,000
Pulp Mills (1.70%)
International Paper Co. 6,700 $ 515,900
Sanitary Services (2.39%)
WMX Technologies, Inc. 26,500 722,125
Security Brokers & Dealers (1.32%)
American Express Co. 11,500 399,625
Shoe Stores (1.16%)
Melville Corp. 9,800 350,350
Soap, Cleaners & Toilet Goods (2.24%)
Procter & Gamble Co. 9,700 677,788
Telephone Communication (7.11%)
AT&T Corp. 14,400 730,800
Airtouch Communications, Inc. 13,000(a) 349,375
Bellsouth Corp. 11,000 673,750
Pacific Telesis Group 13,000 401,375
2,155,300
Variety Stores (2.84%)
Dayton-Hudson Corp. 12,800 859,200
Total Common Stocks 28,159,304
Commercial Paper (6.98%)
Principal
Amount Value
Electronic Distribution Equipment (2.33%)
General Electric Capital Corp.
5.93%; 5/5/95 $705,000 $ 704,536
Motor Vehicles & Equipment (2.24%)
Ford Motor Credit Co.
5.91%; 5/1/95 680,000 680,000
Personal Credit Institutions (2.41%)
Household Finance Corp.
5.90%; 5/2/95 730,000 729,880
Total Commercial Paper 2,114,416
Total Portfolio Investments (99.99%) 30,273,720
Cash, receivables and other assets,
net of liabilities (0.01%) 1,535
Total Net Assets (100.00%) $30,275,255
(a) Non-Income producing security - No dividend paid during the period.
PRINCOR CAPITAL ACCUMULATION FUND, INC.
Shares
Held Value
Common Stocks (95.88%)
Advertising (1.33%)
Interpublic Group of Cos., Inc. 106,800 $ 4,058,400
Air Transportation, Scheduled (0.53%)
Southwest Airlines Co. 70,400 1,628,000
Automotive Rentals, No Drivers (1.19%)
Ryder Systems, Inc. 155,200 3,627,800
Beverages (2.62%)
Pepsico, Inc. 155,400 6,468,525
Universal Foods Corp. 47,400 1,540,500
8,009,025
Central Reserve Depositories (0.49%)
Paccar, Inc. 32,320 1,486,720
Combination Utility Services (1.37%)
Cinergy Corp. 119,500 3,002,438
Scana Corp. 27,800 1,191,925
4,194,363
Commercial Banks (9.66%)
Banc One Corp. 96,800 2,855,600
Boatmen's Bancshares, Inc. 87,200 2,899,400
Chase Manhattan Bank Corp. 107,300 4,694,375
Chemical Banking Corp. 102,000 4,258,500
Comerica, Inc. 103,100 2,964,125
First of America Bank Corp. 78,700 2,724,988
First Security Corp. 45,647 1,089,822
First Tennessee National Corp. 42,150 1,791,375
Firstar Corp. 29,400 848,925
KeyCorp 104,400 2,792,700
Nationsbank Corp. 52,600 2,630,000
29,549,810
Communications Equipment (2.60%)
Allen Group, Inc. 44,400 1,004,550
DSC Communications Corp. 48,100(a) 1,779,700
General Instrument Corp. 49,100(a) 1,675,538
Newbridge Networks Corp. 65,100(a) 2,018,100
Northern Telecom Ltd. 40,900 1,487,737
7,965,625
Computer & Data Processing
Services (1.28%)
Microsoft Corp. 47,900(a) 3,915,825
Computer & Office Equipment (2.26%)
Cabletron Systems, Inc. 36,600(a) 1,738,500
Hewlett-Packard Co. 28,800 1,904,400
International Business
Machines Corp. 34,600 3,278,350
6,921,250
Construction & Related
Machinery (1.33%)
Caterpillar, Inc. 69,700 4,077,450
Crude Petroleum & Natural Gas (1.69%)
Texaco, Inc. 75,500 5,162,313
Dairy Products (0.67%)
Dean Foods Co. 72,400 2,063,400
Deep Sea Foreign Transportation
of Freight (0.43%)
Overseas Shipholding Group, Inc. 66,300 $ 1,326,000
Department Stores (2.26%)
Sears, Roebuck & Co. 127,300 6,906,025
Drugs (4.88%)
American Home Products Corp. 26,100 2,012,962
Bristol-Myers Squibb Co. 46,800 3,047,850
Lilly (Eli) & Co. 39,900 2,982,525
Merck & Co., Inc. 100,500 4,308,938
Warner-Lambert Co. 32,400 2,583,900
14,936,175
Eating & Drinking Places (1.07%)
McDonald's Corp. 93,500 3,272,500
Electric Light & Wiring
Equipment (0.37%)
Cooper Industries 29,400 1,146,600
Electric Services (5.33%)
American Electric Power Co., Inc. 138,800 4,545,700
Dominion Resources, Inc. 122,500 4,471,250
Florida Progress Corp. 44,900 1,369,450
FPL Group, Inc. 84,500 3,105,375
Potomac Electric Power Co. 144,700 2,821,650
16,313,425
Electrical Industrial Apparatus (0.60%)
Emerson Electric Co. 27,400 1,842,650
Electronic Components &
Accessories (0.70%)
Duracell International, Inc. 48,700 2,142,800
Electronic Distribution
Equipment (2.91%)
General Electric Co. 158,900 8,898,400
Engines & Turbines (0.97%)
Cummins Engine Co., Inc. 34,600 1,548,350
Outboard Marine Corp. 64,500 1,427,062
2,975,412
General Industrial Machinery (1.38%)
BW/IP Holdings, Inc.; Class A 63,700 1,122,713
Goulds Pumps, Inc. 46,800 1,158,300
Pall Corp. 83,400 1,949,475
4,230,488
Grain Mill Products (1.87%)
Ralston-Ralston Purina Group 120,800 5,738,000
Grocery Stores (0.70%)
American Stores Co. 84,200 2,157,625
Household Furniture (0.95%)
Masco Corp. 114,500 2,919,750
Industrial Inorganic Chemicals (1.84%)
Dow Chemical Co. 81,000 5,629,500
Insurance Agents, Brokers
& Services (1.23%)
Equifax, Inc. 115,700 3,745,787
Jewelry, Silverware & Plated
Ware (0.58%)
Jostens, Inc. 87,700 $ 1,764,963
Medical Instruments & Supplies (2.14%)
Becton, Dickinson & Co. 37,400 2,085,050
St. Jude Medical, Inc. 72,600 3,121,800
United States Surgical Corp. 60,600 1,348,350
6,555,200
Medical Service
& Health Insurance (3.51%)
AON Corp. 48,850 1,801,344
Foundation Health Corp. 92,300(a) 2,561,325
Pacificare Health Systems, Inc.;
Class B 58,000(a) 3,596,000
Physicians Corp. of America 49,700(a) 888,387
U.S. Healthcare, Inc. 69,900 1,869,825
10,716,881
Metal Forgings & Stampings (0.60%)
Newell Co. 78,100 1,845,112
Metalworking Machinery (0.38%)
Giddings & Lewis 63,600 1,152,750
Miscellaneous Business Services (0.67%)
Safety-Kleen Corp. 120,100 2,041,700
Miscellaneous Converted Paper
Products (3.61%)
Avery Dennison Corp. 88,600 3,599,375
Minnesota Mining & Mfg. Co. 124,800 7,441,200
11,040,575
Miscellaneous Electrical Equipment
& Supplies (1.53%)
Motorola, Inc. 82,600 4,697,875
Miscellaneous Fabricated Metal
Products (0.52%)
Keystone International, Inc. 75,700 1,589,700
Miscellaneous Shopping Goods
Stores (1.21%)
Toys 'R' Us, Inc. 146,600(a) 3,701,650
Motor Vehicles & Equipment (3.02%)
Dana Corp. 73,200 1,884,900
Ford Motor Co. 163,200 4,406,400
General Motors Corp. 65,200 2,942,150
9,233,450
Offices & Clinics of Medical
Doctors (0.88%)
FHP International Corp. 112,900(a) 2,681,375
Paper Mills (0.98%)
James River Corp. of Virginia 110,400 2,994,600
Petroleum Refining (4.04%)
Atlantic Richfield Co. 35,300 4,041,850
Exxon Corp. 91,600 6,377,650
Lyondell Petrochemical Co. 78,400 1,950,200
12,369,700
Photographic Equipment
& Supplies (1.78%)
Eastman Chemical Co. 34,800 1,974,900
Eastman Kodak Co. 60,300 3,467,250
5,442,150
Plastic Materials & Synthetics (0.56%)
Wellman, Inc. 63,300 $ 1,709,100
Pulp Mills (1.37%)
International Paper Co. 22,100 1,701,700
Mead Corp. 48,300 2,499,525
4,201,225
Railroad Equipment (0.78%)
Trinity Industries, Inc. 62,000 2,394,750
Sanitary Services (3.93%)
Browning-Ferris Industries, Inc. 102,400 3,379,200
WMX Technologies, Inc. 317,900 8,662,775
12,041,975
Security Brokers & Dealers (0.74%)
Edwards (A.G.), Inc. 99,622 2,278,853
Soap, Cleaners & Toilet Goods (0.73%)
Avon Products 35,400 2,239,050
Telephone Communication (4.29%)
AT&T Corp. 167,100 8,480,325
MCI Communications Corp. 213,800 4,650,150
13,130,475
Variety Stores (3.28%)
Dayton-Hudson Corp. 82,300 5,524,387
Wal-Mart Stores, Inc. 190,300 4,519,625
10,044,012
Women's Clothing Stores (0.24%)
Charming Shoppes, Inc. 137,300 746,569
Total Common Stocks $293,454,808
Bond (1.05%)
Principal
Amount Value
Electrical Industrial Apparatus (1.05%)
Liebert Co.
Convertible Subordinated
Debentures; 8.00%; 11/15/10 $1,281,000 $ 3,207,304
Commercial Paper (4.48%)
Electronic Distribution
Equipment (1.16%)
General Electric Capital Corp.
5.93%; 5/5/95 3,565,000 3,562,651
Life Insurance (0.71%)
Prudential Funding Corp.
5.92%; 5/4/95 2,160,000 2,158,934
Motor Vehicles & Equipment (1.84%)
Ford Motor Credit Co.
5.91%; 5/1/95 3,260,000 3,260,000
5.94%; 5/3/95 2,385,000 2,384,213
5,644,213
Personal Credit Institutions (0.77%)
Household Finance Corp.
5.90%; 5/2/95 $2,355,000 $ 2,354,614
Total Commercial Paper 13,720,412
Total Portfolio Investments (101.41%) 310,382,524
Liabilities, net of cash, receivables
and other assets (-1.41%) (4,329,402)
Total Net Assets (100.00%) $306,053,122
(a) Non-Income producing security - No dividend paid during the period.
PRINCOR EMERGING GROWTH FUND, INC.
Shares
Held Value
Common Stocks (83.60%)
Blast Furnace & Basic Steel
Products (1.39%)
Lukens, Inc. 50,000 $ 1,618,750
Carpets & Rugs (1.69%)
Shaw Industries, Inc. 150,000 1,968,750
Chemicals & Allied Products (0.76%)
Sigma-Aldrich Corp. 20,000 885,000
Commercial Banks (8.09%)
Boatmen's Bancshares, Inc. 10,200 339,150
First Commerce Corp. 15,000 412,500
First Federal Capital Corp. 108,532 1,682,246
Hawkeye Bancorp. 67,000 1,520,063
Independent Bank Corp. Michigan 35,000 857,500
Integra Financial Corp. 10,000 437,500
Merchants Bancorp., Inc. 57,500 1,451,875
North Fork Bancorp., Inc. 25,000 437,500
Peoples Heritage Financial
Group, Inc. 58,900 809,875
Princeton National Bancorp., Inc. 85,250 1,108,250
Summit Bancorp. 17,600 338,800
9,395,259
Commercial Printing (0.63%)
Bowne & Co., Inc. 5,000 81,875
Merrill Corp. 40,000 650,000
731,875
Communications Equipment (1.74%)
California Amplifier, Inc. 50,000(a) 475,000
Newbridge Networks Corp. 50,000(a) 1,550,000
2,025,000
Computer & Data Processing
Services (6.56%)
American Management Systems, Inc. 70,000(a) $ 1,478,750
Effective Management Systems 125,000(a) 828,125
HBO & Co. 24,000 1,098,000
Legent Corp. 80,000(a) 2,180,000
Microsoft Corp. 25,000(a) 2,043,750
7,628,625
Computer & Office Equipment (2.17%)
Digital Biometrics, Inc. 35,000(a) 332,500
EMC Corp. 80,000(a) 1,580,000
Sun Microsystems, Inc. 15,260(a) 608,493
2,520,993
Crude Petroleum & Natural Gas (0.36%)
Devon Energy Corp. 19,950 413,963
Dairy Products (0.77%)
Dreyer's Grand Ice Cream, Inc. 30,000 892,500
Department Stores (1.12%)
Younkers, Inc. 70,000(a) 1,303,750
Drugs (1.46%)
Alliance Pharmaceutical Corp. 28,000(a) 143,500
Forest Laboratories, Inc. 10,000(a) 450,000
Merck & Co., Inc. 16,970 727,589
Seragen, Inc. 40,000(a) 275,000
Syntro Corp. 50,000(a) 100,000
1,696,089
Eating & Drinking Places (0.60%)
Ryan's Family Steak Houses, Inc. 100,000(a) 700,000
Electronic Components &
Accessories (6.11%)
Linear Technology Corp. 25,000 1,493,750
Solectron Corp. 80,000(a) 2,350,000
Vishay Intertechnology, Inc. 55,125(a) 3,259,266
7,103,016
Engineering & Architectural
Services (0.55%)
Paychex, Inc. 13,500 642,937
Fire, Marine & Casualty
Insurance (1.79%)
Avemco Corp. 57,200 958,100
Berkley W. R. Corp. 30,000 1,125,000
2,083,100
Footwear, Except Rubber (1.01%)
Nine West Group, Inc. 36,000(a) 1,170,000
General Industrial Machinery (5.86%)
Flow International Corp. 100,000(a) 837,500
Kaydon Corp. 50,000 1,375,000
MFRI, Inc. 67,000(a) 297,312
Pentair, Inc. 45,000 2,058,750
Roper Industries, Inc. 82,800 2,235,600
6,804,162
Grocery Stores (0.45%)
Casey's General Stores, Inc. 30,000 517,500
Hardware Stores (1.33%)
Central Tractor Farm &
Country, Inc. 121,000(a) 1,542,750
Holding Offices (1.98%)
Central Mortgage Bancshares, Inc. 84,000 $ 1,806,000
Today's Bancorp., Inc. 29,000 500,250
2,306,250
Hose, Belting, Gaskets &
Packing (1.63%)
Mark IV Industries 105,105 1,891,890
Hospitals (2.17%)
Humana, Inc. 75,000(a) 1,462,500
Universal Health Services, Inc.;
Class B 40,000(a) 1,055,000
2,517,500
Industrial Inorganic Chemicals (1.09%)
AMSCO International, Inc. 100,000(a) 1,262,500
Insurance Agents, Brokers
& Services (0.99%)
Equifax, Inc. 35,400 1,146,075
Iron & Steel Foundries (1.32%)
Atchison Casting Corp. 102,000(a) 1,530,000
Laundry, Cleaning & Garment
Services (0.59%)
G&K Services, Inc.; Class A 37,500 684,375
Life Insurance (0.73%)
First Colony Corp. 38,100 847,725
Lumber & Other Building
Materials (0.24%)
Payless Cashways, Inc. 35,000(a) 275,625
Measuring & Controlling
Devices (0.32%)
ISCO, Inc. 30,935 371,214
Meat Products (1.35%)
Michael Foods, Inc. 125,000 1,570,312
Medical Instruments & Supplies (5.67%)
Andros Analyzers, Inc. 10,000(a) 168,750
Boston Scientific Corp. 170,760(a) 4,653,210
MDT Corp. 50,000(a) 312,500
Nellcor, Inc. 35,000(a) 1,452,500
6,586,960
Medical Service & Health
Insurance (3.61%)
Foundation Health Corp. 50,000(a) 1,387,500
Health System International, Inc. 38,900(a) 991,950
United Healthcare Corp. 50,000 1,812,500
4,191,950
Metal Forgings & Stampings (0.58%)
Varlen Corp. 28,485 669,398
Metal Services, NEC (1.08%)
BMC Industries, Inc. 70,000 1,260,000
Miscellaneous Chemical
Products (2.58%)
H. B. Fuller Co. 40,000 1,510,000
Loctite Corp. 30,000 1,492,500
3,002,500
Miscellaneous Fabricated
Metal Products (2.20%)
Intel Corp. 25,000 $ 2,559,375
Miscellaneous Plastics
Products, NEC (0.13%)
Rubbermaid, Inc. 5,266 155,347
Nursing & Personal
Care Facilities (0.26%)
Continental Medical Systems, Inc. 28,036(a) 301,387
Office Furniture (0.53%)
Chromcraft Revington, Inc. 15,000(a) 352,500
Kimball International, Inc.;
Class B 10,000 265,000
617,500
Offices & Clinics of Medical
Doctors (0.07%)
FHP International Corp. 3,360 79,800
Operative Builders (0.47%)
Pulte Corp. 25,000 540,625
Paints & Allied Products (0.68%)
RPM, Inc. 40,000 790,000
Pens, Pencils, Office & Art
Supplies (0.04%)
Hunt Mfg. Co. 3,450 50,887
Personnel Supply Services (0.30%)
Olsten Corp. 10,266 350,327
Plastic Materials & Synthetics (1.08%)
A. Schulman, Inc. 40,000 1,255,000
Plumbing, Heating &
Air-Conditioning (1.12%)
Apogee Enterprises, Inc. 70,000 1,207,500
Metalclad Corp. 55,000(a) 92,813
1,300,313
Refrigeration & Service
Machinery (1.08%)
Tecumseh Products Co.; Class A 25,000 1,256,250
Sanitary Services (0.43%)
Browning-Ferris Industries, Inc. 15,000 495,000
Savings Institutions (0.92%)
North Side Savings Bank (NY) 16,275 368,222
Sterling Financial Corp. 52,030(a) 702,405
1,070,627
Security Brokers & Dealers (0.38%)
Jefferies Group, Inc. 13,043 440,201
Special Industry Machinery (0.46%)
Key Technology, Inc. 60,000(a) 532,500
Toys & Sporting Goods (1.02%)
Mattel, Inc. 50,000 1,187,500
Trucking & Courier Services,
Ex., Air (1.64%)
Consolidated Freightways, Inc. 15,000 382,500
J. B. Hunt Transport Services, Inc.80,500 1,519,437
1,901,937
Women's Clothing Stores (0.42%)
Charming Shoppes, Inc. 90,000 $ 489,375
Total Common Stocks 97,132,244
Preferred Stocks (3.24%)
Gas Production & Distribution (0.98%)
Kelley Oil and Gas Corp.
Convertible 54,432 1,143,072
Offices & Clinics of Medical
Doctors (2.26%)
FHP International Corp.
Series A Convertible 111,200 2,627,100
Total Preferred Stocks 3,770,172
Bonds (3.52%)
Principal
Amount Value
Combination Utility Services (0.00%)
Bonneville Pacific Corp.
Convertible Subordinated
Debentures; 7.75%; 8/15/09 $ 150,000(b) $ 0
Computer & Data Processing
Services (1.24%)
Sierra On Line
Convertible Subordinated
Debentures; 6.50%; 4/1/01 990,000(c) 1,435,500
Computer & Office Equipment (0.16%)
Seagate Technology
Convertible Subordinated
Debentures; 6.75%; 5/1/12 200,000 190,250
Drugs (0.34%)
Genzyme Corp.
Convertible Notes;
6.75%; 10/1/01 400,000 390,000
Industrial Inorganic Chemicals (1.12%)
Ciba-Geigy Corp.
Exchangeable Subordinated
Debentures; 6.25%; 3/15/16 350,000(c) 320,688
ICN Pharmaceuticals, Inc.
Convertible Subordinated
Debentures, 8.50%; 11/15/99 1,000,000 986,250
1,306,938
Nursing & Personal Care
Facilities (0.19%)
Greenery Rehabilitation Group, Inc.
Convertible Senior Subordinated
Notes; 8.75%; 4/1/15 250,000 222,500
Plumbing, Heating & Air-
Conditioning (0.16%)
Metalclad Corp.
Convertible Subordinated
Debentures; 8.00%; 6/1/97 $ 425,000(c) $ 183,812
Sanitary Services (0.31%)
Enclean, Inc.
Convertible Subordinated
Debentures; 7.50%; 8/1/01 200,000 200,655
Sanifill, Inc.
Convertible Subordinated
Debentures; 7.50%; 6/1/06 150,000 155,625
356,280
Total Bonds 4,085,280
Commercial Paper (9.41%)
Electronic Distribution
Equipment (0.69%)
General Electric Capital Corp.
5.93%; 5/5/95 800,000 799,473
Life Insurance (1.45%)
Prudential Funding Corp.
5.92%; 5/4/95 1,685,000 1,684,169
Motor Vehicles & Equipment (2.21%)
Ford Motor Credit Co.
5.91%; 5/1/95 2,565,000 2,565,000
Personal Credit Institutions (2.72%)
Household Finance Corp.
5.90%; 5/2/95 3,165,000 3,164,481
Petroleum Refining (2.34%)
Chevron Oil Finance Co.
5.93%; 5/3/95 2,715,000 2,714,105
Total Commercial Paper 10,927,228
Total Portfolio Investments (99.77%) 115,914,924
Cash, receivables and other assets,
net of liabilities (0.23%) 272,945
Net Assets (100.00%) $116,187,869
(a) Non-income producing security - No dividend paid during the period.
(b) Non-income producing security - Security in default.
(c) Restricted security - See Note 4 to the financial statements.
PRINCOR GROWTH FUND, INC.
Shares
Held Value
Common Stocks (84.58%)
Advertising (1.62%)
Interpublic Group of Cos., Inc. 60,000 $ 2,280,000
Beverages (2.28%)
Coca-Cola Co. 28,000 1,627,500
Pepsico, Inc. 37,800 1,573,425
3,200,925
Blast Furnace & Basic Steel
Products (1.67%)
Lukens, Inc. 55,000 1,780,625
Quanex Corp. 24,142 561,302
2,341,927
Carpets & Rugs (1.40%)
Shaw Industries, Inc. 150,000 1,968,750
Commercial Banks (3.42%)
Boatmen's Bancshares, Inc. 45,000 1,496,250
First of America Bank Corp. 30,400 1,052,600
Firstmerit Corporation 50,000 1,156,250
Meridian Bancorp., Inc. 10,000 317,500
Princeton National Bancorp., Inc. 60,000 780,000
4,802,600
Communications Equipment (1.30%)
Northern Telecom Ltd. 50,000 1,818,750
Computer & Data Processing
Services (4.00%)
Legent Corp. 80,000(a) 2,180,000
Microsoft Corp. 42,000(a) 3,433,500
5,613,500
Computer & Office Equipment (1.78%)
Digital Equipment Corp. 6,800(a) 313,650
Hewlett-Packard Co. 20,000 1,322,500
Pitney Bowes, Inc. 10,000 371,250
Tandy Corp. 10,000 495,000
2,502,400
Construction & Related
Machinery (1.59%)
Clark Equipment Co. 26,100(a) 2,231,550
Department Stores (1.88%)
May Department Stores 42,000 1,522,500
Younkers, Inc. 60,000(a) 1,117,500
2,640,000
Drugs (4.29%)
Alliance Pharmaceutical Corp. 20,000(a) 102,500
Bristol-Myers Squibb Co. 10,000 651,250
Johnson & Johnson 16,000 1,040,000
Lilly (Eli) & Co. 20,000 1,495,000
Merck & Co., Inc. 44,100 1,890,787
Seragen, Inc. 70,500(a) 484,688
Upjohn Co. 10,000 362,500
6,026,725
Electric Light & Wiring
Equipment (0.21%)
Raychem Corp. 8,100 288,562
Electrical Goods (0.32%)
Avnet, Inc. 10,000 445,000
Electronic Components &
Accessories (3.88%)
Linear Technology Corp. 45,000 2,688,750
Vishay Intertechnology, Inc. 46,725(a) 2,762,616
5,451,366
Electronic Distribution
Equipment (0.80%)
General Electric Co. 20,000 1,120,000
Engineering & Architectural
Services (0.37%)
Dun & Bradstreet Corp. 10,000 $ 521,250
Federal & Federally Sponsored
Credit (0.63%)
Federal National Mortgage
Association 10,000 882,500
Footwear, Except Rubber (0.80%)
Stride Rite Corp. 94,000 1,116,250
General Industrial Machinery (3.34%)
Flow International Corp. 100,000(a) 837,500
Ingersoll-Rand Co. 55,000 1,966,250
Tyco International Ltd. 36,000 1,890,000
4,693,750
Grain Mill Products (3.04%)
General Mills, Inc. 40,000 2,440,000
Ralcorp Holdings, Inc. 10,833(a) 250,513
Ralston Continental Baking Group 6,500(a) 26,813
Ralston-Ralston Purina Group 32,500 1,543,750
4,261,076
Grocery Stores (0.26%)
Casey's General Stores, Inc. 21,052 363,147
Holding Offices (0.37%)
Today's Bancorp Inc. 30,000 517,500
Hose, Belting, Gaskets & Packing (1.56%)
Mark IV Industries 122,054 2,196,974
Hospitals (2.19%)
Humana, Inc. 100,000(a) 1,950,000
Universal Health Services, Inc.;
Class B 42,511(a) 1,121,227
3,071,227
Household Furniture (1.45%)
Masco Corp. 80,000 2,040,000
Medical Instruments & Supplies (6.71%)
Andros Analyzers, Inc. 60,000(a) 1,012,500
Becton, Dickinson & Co. 20,000 1,115,000
Boston Scientific Corp. 206,961(a) 5,639,687
Nellcor, Inc. 40,000(a) 1,660,000
9,427,187
Medical Service & Health
Insurance (4.97%)
AON Corp. 40,000 1,475,000
Foundation Health Corp. 70,000(a) 1,942,500
Health System International, Inc. 50,000(a) 1,275,000
Provident Life & Accident Insurance Co.;
Class A 10,000 216,250
Class B 10,000 222,500
United Healthcare Corp. 51,000 1,848,750
6,980,000
Millwork, Plywood & Structural
Members (0.34%)
Georgia-Pacific Corp. 6,096 483,870
Miscellaneous Chemical
Products (0.71%)
Loctite Corp. 20,000 995,000
Miscellaneous Converted Paper
Products (0.59%)
Minnesota Mining & Mfg. Co. 14,000 $ 834,750
Miscellaneous Electrical Equipment
& Supplies (2.03%)
Motorola, Inc. 50,000 2,843,750
Miscellaneous Fabricated Metal
Products (2.30%)
Intel Corp. 31,500 3,224,813
Motor Vehicles & Equipment (3.21%)
Chrysler Corp. 46,000 1,983,750
Dana Corp. 98,000 2,523,500
4,507,250
Office Furniture (0.25%)
Chromcraft Revington, Inc. 15,000(a) 352,500
Offices & Clinics of Medical
Doctors (0.25%)
FHP International Corp. 15,000(a) 356,250
Operative Builders (0.65%)
Pulte Corp. 42,105 910,520
Petroleum Refining (3.37%)
Atlantic Richfield Co. 20,000 2,290,000
Exxon Corp. 35,000 2,436,875
4,726,875
Plumbing, Heating & Air-
Conditioning (0.20%)
Metalclad Corp. 162,500 274,219
Refrigeration & Service
Machinery (1.43%)
Tecumseh Products Co.; Class A 40,000 2,010,000
Rubber & Plastics Footwear (0.89%)
Reebok International Ltd. 40,000 1,250,000
Sanitary Services (2.75%)
Browning-Ferris Industries, Inc. 80,000 2,640,000
WMX Technologies, Inc. 45,000 1,226,250
3,866,250
Security Brokers & Dealers (1.54%)
Salomon, Inc. 60,000 2,167,500
Soap, Cleaners & Toilet Goods (5.32%)
Colgate-Palmolive Co. 35,000 2,458,750
Ecolab, Inc. 100,000 2,300,000
International Flavors &
Fragrances, Inc. 15,000 770,625
SmithKline Beecham PLC 50,000 1,943,750
7,473,125
Toys & Sporting Goods (1.67%)
Mattel, Inc. 98,437 2,337,879
Trucking & Courier Services,
Ex., Air (0.52%)
Roadway Services, Inc. 15,000 $ 727,500
Women's Clothing Stores (0.43%)
Charming Shoppes, Inc. 110,000 598,125
Total Common Stocks 118,743,092
Preferred Stocks (2.71%)
Motor Vehicles & Equipment (0.63%)
Ford Motor Co.
Series A Convertible 10,000 881,250
Offices & Clinics of Medical
Doctors (2.08%)
FHP International Corp.
Series A Convertible 124,000 2,929,500
Total Preferred Stocks 3,810,750
Bonds (2.54%)
Principal
Amount Value
Drugs (0.17%)
Genzyme Corp.
Convertible Notes;
6.75%; 10/1/01 $ 250,000 $ 243,750
Electrical Industrial Apparatus (0.89%)
Liebert Co.
Convertible Subordinated
Debentures; 8.00%; 11/15/10 500,000 1,251,875
Industrial Inorganic Chemicals (0.33%)
Ciba-Geigy Corp.
Exchangeable Subordinated
Debentures; 6.25%; 3/15/16 500,000(b) 458,125
Nursing & Personal Care
Facilities (0.63%)
Greenery Rehabilitation Group, Inc.
Convertible Senior Subordinated
Notes; 8.75%; 4/1/15 1,000,000 890,000
Plumbing, Heating &
Air-Conditioning (0.08%)
Metalclad Corp.
Convertible Subordinated
Debentures; 8.00%; 6/1/97 250,000(b) 108,125
Sanitary Services (0.44%)
Enclean, Inc.
Convertible Subordinated
Debentures; 7.50%; 8/1/01 300,000 300,982
Sanifill, Inc.
Convertible Subordinated
Debentures; 7.50%; 6/1/06 300,000 311,250
612,232
Total Bonds 3,564,107
Commercial Paper (10.03%)
Electronic Distribution
Equipment (1.64%)
General Electric Capital Corp.
5.93%; 5/8/95 $2,310,000 $ 2,307,336
Motor Vehicles & Equipment (2.54%)
Ford Motor Credit Co.
5.91%; 5/2/95 3,560,000 3,559,416
Personal Credit Institutions (1.54%)
Household Finance Corp.
5.90%; 5/3/95 2,155,000 2,154,293
Petroleum Refining (4.31%)
Chevron Oil Finance Co.
5.85%; 5/1/95 2,475,000 2,475,000
5.93%; 5/4/95 2,020,000 2,019,002
5.92%; 5/5/95 1,560,000 1,558,974
6,052,976
Total Commercial Paper 14,074,021
Total Portfolio Investments (99.86%) 140,191,970
Cash, receivables and other assets,
net of liabilities (0.14%) 198,737
Total Net Assets (100.00%) $140,390,707
(a) Non-income producing security - No dividend paid during the period.
(b) Restricted security - See Note 4 to the financial statements.
PRINCOR WORLD FUND, INC.
Shares
Held Value
Common Stocks (96.16%)
AUSTRALIA (4.78%)
Commercial Banks (1.92%)
National Australia Bank Ltd. 259,144 $ 2,244,282
Crude Petroleum & Natural Gas (0.64%)
Ampolex Ltd. 259,000 748,307
Gas Production & Distribution (0.85%)
Australia Gas & Light 305,000 998,853
Miscellaneous Food &
Kindred Products (1.37%)
Burns, Philp & Co., Ltd. 634,938 1,608,050
5,599,492
AUSTRIA (1.41%)
Airports, Flying Fields & Services (0.69%)
Flughafen Wien AG 18,200 812,192
Railroad Equipment (0.72%)
Vae AG 9,350 $ 843,158
1,655,350
CANADA (3.36%)
Coal Mining Services (0.52%)
Morgan Hydrocarbons, Inc. 213,600(a) 612,207
Communications Equipment (1.00%)
Newbridge Networks Corp. 37,700(a) 1,168,700
Iron & Steel Foundries (1.25%)
Dofasco, Inc. 117,300 1,465,478
Miscellaneous Plastics
Products, NEC (0.59%)
Royal Plastics Group 65,000(a)(b) 692,650
3,939,035
CHILE (1.04%)
Agricultural Chemicals (0.48%)
Sociedad Quimica Minera De
Chile SA ADR 16,000 558,000
Telephone Communication (0.56%)
Compania De Telef Chile ADR 9,600 662,400
1,220,400
FINLAND (4.10%)
Forest Products (0.70%)
Metsa-Serla 18,800 821,446
Miscellaneous Wood Products (1.10%)
Enso-Gutzeit 142,000 1,280,938
Pulp Mills (1.30%)
Kymmene 50,700 1,524,496
Sugar & Confectionary Products (1.00%)
Huhtamake I Free 36,200 1,173,535
4,800,415
FRANCE (0.64%)
Drugs (0.64%)
Roussel-Uclaf 5,250 754,149
GERMANY (4.53%)
Flat Glass (0.67%)
Weru AG 1,275 784,067
Industrial Inorganic Chemicals (1.91%)
Bayer AG 9,055 2,237,192
Miscellaneous Chemical Products (1.95%)
Hoechst AG 10,700 2,287,522
5,308,781
HONG KONG (6.61%)
Communications Equipment (0.44%)
ABC Communications
Holdings Ltd. 1,946,000 $ 515,495
Electric Services (0.72%)
CEP-A Consolidated Electric
Power-Asia 387,000 847,635
Electrical Industrial Apparatus (0.42%)
Johnson Electric Industrial
Mfg., Ltd. 226,800 493,823
Electronic Components
& Accessories (0.42%)
Varitronix 340,000 496,461
Highway & Street Construction (0.48%)
Wai Kee Holdings, Ltd 3,630,000 567,571
Holdings Offices (1.56%)
First Pacific Co. Ltd. 2,228,000 1,828,172
Office Furniture (0.43%)
Lamex Holdings 2,660,000 498,400
Personal Credit Institutions (1.19%)
Manhattan Card Co. 3,363,000 1,390,609
Security Brokers & Dealers (0.95%)
Peregrine Investment Holdings 1,058,000 1,114,222
7,752,388
INDONESIA (1.57%)
Miscellaneous Furniture
& Fixtures (0.24%)
Pt Surya Toto 154,000 275,871
Photographic Equipment
& Supplies (0.35%)
PT Modern Photo Film Co. 100,000 418,732
Pulp Mills (0.98%)
Asia Pacific Resources 146,700(a) 1,155,262
1,849,865
ITALY (2.32%)
Metalworking Machinery (0.30%)
Danieli & Co.-DR 110,000 353,316
Telephone Communication (2.02%)
Telecom Italia-DI 1,136,000 2,364,959
2,718,275
JAPAN (1.03%)
Computer & Office Equipment (0.49%)
Canon, Inc. 35,000 $ 579,047
Electronic Components
& Accessories (0.31%)
Murata Mfg. 9,000 362,068
Engines & Turbines (0.23%)
Mabuchi Motor 4,000 264,231
1,205,346
KOREA (2.62%)
Concrete Work (0.28%)
Hanil Cemet 6,000 330,567
Construction & Related
Machinery (0.72%)
Keumkang 10,000 840,847
Electric Services (0.89%)
Korea Electric Power Corp. 28,500 1,043,057
Foreign Banks, Branches
& Agencies (0.33%)
Shinhan Bank 16,300 331,420
Shinhan Bank Bonus Shares 2,992(a) 60,835
392,255
Industrial Inorganic Chemicals (0.40%)
Korea Chemical 4,000 466,992
3,073,718
MALAYSIA (1.22%)
Electronic Distribution
Equipment (0.22%)
Matsushita Electric Co.
of Malaysia 33,500 257,781
Holding Offices (0.56%)
C. I. Holdings 180,000 656,097
Non-Classifiable Establishments (0.44%)
Malaysian Pacific Industries 244,000 513,862
1,427,740
MEXICO (1.97%)
Aircraft & Parts (0.13%)
Tolmex SA 46,000 153,726
Cement, Hydraulic (0.27%)
Apasco SA 90,000 308,364
Concrete, Gypsum & Plaster
Products (0.22%)
Cementos De Mexico SA 80,000 257,900
Department Stores (0.27%)
Sears Roebuck De Mexico SA 83,400(a) 313,903
Foreign Banks, Branches
& Agencies (0.26%)
Grupo Financiero Bancomer 1,030,000 307,706
Miscellaneous Food & Kindred
Products (0.17%)
Grupo Herdez SA 498,000 $ 199,206
Telephone Communication (0.65%)
Telefonos De Mexico SA ADR 25,300 765,325
2,306,130
NETHERLANDS (13.99%)
Beer, Wine & Distilled
Beverages (0.48%)
Heineken Holdings 4,344 569,168
Communications Services, NEC (1.70%)
KPN Royal PTT Nederland 57,086 1,993,457
Electric Light & Wiring
Equipment (0.64%)
Otra 3,700 748,720
Electronic Distribution
Equipment (1.99%)
Phillips Electronics 61,100 2,334,763
Foreign Banks, Branches &
Agencies (1.76%)
ABN-AMRO Holdings NV 53,415 2,058,342
Grocery Stores (1.32%)
Ahold NV New ADR 39,854 1,384,926
Koninklijke Ahold NV 4,940 170,274
1,555,200
Meat Products (2.46%)
Unilever NV 21,500 2,882,404
Miscellaneous Durable Goods (0.89%)
Hagemeyer NV 12,000 1,037,925
Miscellaneous Transportation
Services (0.76%)
Koninklijke Pakhoed NV 30,178 896,041
Paperboard Containers &
Boxes (0.65%)
Koninklijke KNP BT NV 25,080(b) 757,623
Special Industry Machinery (1.34%)
IHC Caland NV 57,300 1,568,197
16,401,840
NEW ZEALAND (0.65%)
Miscellaneous Manufacturers (0.65%)
Carter Holt Harvey Ltd. 297,300 756,482
NORWAY (1.98%)
Commercial Banks (0.64%)
Christiana Bank Ordinary Shares 361,000(a) 748,477
Drugs (0.34%)
Hafslund Nycomed 18,500 402,895
Ship & Boat Building &
Repairing (1.00%)
Unitor Ships Service 76,600 1,175,746
2,327,118
SINGAPORE (1.46%)
Air Transportation, Scheduled (0.62%)
Singapore International Airlines 76,000 730,841
Electric Light & Wiring
Equipment (0.27%)
Clipsal Industries Holdings 149,000 321,840
Electronic Components &
Accessories (0.57%)
Amtek Engineering 450,000 662,020
1,714,701
SPAIN (6.27%)
Combination Utility Services (1.18%)
Iberdrola 1 SA 210,000 1,381,846
Commercial Banks (1.42%)
Banco Popular 12,230 1,671,121
Miscellaneous Special Trade
Contractors (0.50%)
Zardoya-Otis 5,500 578,613
Oil & Gas Field Services (2.03%)
Repsol Petroleo, SA 74,800 2,382,007
Telephone Communication (1.14%)
Telefonica De Espana, SA 109,400 1,337,547
7,351,134
SWEDEN (7.50%)
Carpentry & Floor Work (0.46%)
Skane-Gripen AB 'B' Free 61,100 542,353
Foreign Banks, Branches
& Agencies (1.37%)
Svenska Handelsbanken AB Free 130,750 1,601,449
Household Audio & Video
Equipment (0.85%)
SKF 'B' Free 49,700(a) 1,002,018
Miscellaneous Transportation
Equipment (0.56%)
Autoliv AB 14,500(a) 656,516
Motor Vehicles & Equipment (1.40%)
Volvo AB 87,000 1,634,305
Plastic Materials & Synthetics (1.14%)
Astra AB 47,050 1,340,329
Water Transportation of
Freight, NEC (1.72%)
Argonaut AB 'B' Free 237,000(a) 384,869
ICB Shipping AB 'B' Free 213,733 1,632,472
2,017,341
8,794,311
SWITZERLAND (11.92%)
Combination Utility Services (0.70%)
BBC AG (Brown Boveri) 830 $ 822,015
Drugs (3.72%)
Galencia Holdings AG 3,600 1,182,150
Immuno International AG 2,720 1,309,997
Sandoz AG 2,850 1,869,242
4,361,389
Functions Closely Related to
Banking (1.27%)
BIL GT Group 3,000 1,494,763
Nonferrous Rolling & Drawing (0.50%)
Von Moos Holdings AG 5,600(a) 588,448
Plumbing & Heating, Except
Electric (0.63%)
Elco Holdings 1,700 744,317
Pulp Mills (0.80%)
Attisholz AG 1,450 939,590
Special Industry Machinery (2.45%)
Bobst SA 1,345 1,837,324
Sulzer AG 1,800 1,032,411
2,869,735
Sugar & Confectionary Products (1.85%)
Nestle 2,204 2,159,636
13,979,893
THAILAND (2.02%)
Commercial Banks (1.25%)
Bangkok Bank 152,000 1,470,914
Non-Classifiable Establishments (0.77%)
Thailand International Fund 31 899,000
2,369,914
UNITED KINGDOM (13.17%)
Construction & Related
Machinery (2.28%)
Powerscreen International PLC 595,000 2,671,519
Crude Petroleum & Natural
Gas (1.24%)
Hardy Oil & Gas 520,000 1,456,095
Electric Services (1.73%)
Northern Ireland Electric 361,000 2,033,351
Lumber & Other Building
Materials (1.12%)
Wickes PLC 754,000 1,310,486
Miscellaneous Fabricated Metal
Products (0.43%)
Bridon PLC 225,000 499,688
Miscellaneous Non-Durable
Goods (1.53%)
Grand Metropolitan PLC 279,000 1,793,734
Primary Nonferrous Metals (1.65%)
British Steel PLC 712,000 1,936,439
Pulp Mills (0.43%)
Babcock International Group 1,140,857(a) 495,715
Sand & Gravel (0.41%)
Bardon Group PLC 1,033,000 482,098
Telephone Communication (1.10%)
Cable & Wireless PLC 200,000 1,292,268
Water Supply (1.25%)
Wessex Water PLC 322,392 1,468,277
15,439,670
Total Common Stocks 112,746,147
Preferred Stocks (0.72%)
AUSTRIA (0.72%)
Highway & Street Construction (0.72%)
Bau Holdings AG 16,200 839,544
Commercial Paper (2.50%)
Principal
Amount Value
UNITED STATES (2.50%)
Electronic Distribution
Equipment (0.78%)
General Electric Capital Corp.
5.93%; 5/5/95 $ 910,000 $ 909,400
Motor Vehicles & Equipment (0.78%)
Ford Motor Credit Co.
5.93%; 5/4/95 915,000 914,548
Personal Credit Institutions (0.94%)
Beneficial Corp.
5.89%; 5/1/95 1,100,000 1,100,000
Total Commercial Paper 2,923,948
Total Portfolio Investments (99.38%) 116,509,639
Cash, receivables and other assets,
net of liabilities (0.62%) 731,492
Total Net Assets (100.00%) $117,241,131
(a) Non-Income producing security - No dividend paid during the period.
(b) Restricted security - See Notes 4 to the financial statements.
<PAGE>
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<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected data for a share of Capital Stock outstanding throughout each period:
Income from Investment Operations Less Distributions
Net Realized
and
Net Asset Net Unrealized Total Dividends
Value at Invest- Gain from from Net Distributions
Beginning ment (Loss) on Investment Investment from Total
of Period Income Investments Operations Income Capital Gains Distributions
PRINCOR BALANCED FUND, INC.
Class A:
<S> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended April 30, 1995 $12.43 $.19 $ .31 $ .50 $(.18) $ (.05) $ (.23)
Year Ended October 31,
1994 13.26 .32 (.20) .12 (.40) (.55) (.95)
1993 12.78 .35 1.14 1.49 (.37) (.64) (1.01)
1992 11.81 .41 .98 1.39 (.42) -- (.42)
1991 9.24 .46 2.61 3.07 (.50) -- (.50)
1990 11.54 .53 (1.70) (1.17) (.59) (.54) (1.13)
Class B:
Period Ended April 30, 1995 (e) 11.80 .14 .90 1.04 (.16) -- (.16)
PRINCOR BLUE CHIP FUND, INC.
Class A:
Six Months Ended April 30, 1995 12.45 .11 .86 .97 (.11) -- (.11)
Year Ended October 31,
1994 11.94 .20 .57 .77 (.26) -- (.26)
1993 11.51 .21 .43 .64 (.18) (.03) (.21)
1992 10.61 .17 .88 1.05 (.15) -- (.15)
Period Ended October 31, 1991(d) 10.02 .10 .57 .67 (.08) -- (.08)
Class B:
Period Ended April 30, 1995(e) 11.89 .07 1.40 1.47 (.08) -- (.08)
PRINCOR CAPITAL ACCUMULATION FUND, INC.
Class A:
Six Months Ended April 30, 1995 20.83 .21 .72 .93 (.19) (.35) (.54)
Year Ended October 31,
1994 21.41 .39 .93 1.32 (.41) (1.49) (1.90)
1993 21.34 .43 1.67 2.10 (.43) (1.60) (2.03)
1992 19.53 .45 1.82 2.27 (.46) -- (.46)
1991 14.31 .49 5.24 5.73 (.51) -- (.51)
1990 18.16 .52 (3.64) (3.12) (.40) (.33) (.73)
Class B:
Period Ended April 30, 1995(e) 19.12 .21 2.01 2.22 (.19) -- (.19)
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
Value at Net Assets at Expenses to Income to Portfolio
End Total End of Period Average Average Turnover
of Period Return(b) (in thousands) Net Assets Net Assets Rate
PRINCOR BALANCED FUND, INC.
Class A:
<S> <C> <C> <C> <C> <C> <C>
Six Months Ended April 30, 1995 $12.70 4.13%(c) $ 54,364 1.51%(a) 3.13%(a) 36.6%(a)
Year Ended October 31,
1994 12.43 0.94% 53,366 1.51% 2.70% 14.4%
1993 13.26 12.24% 39,952 1.35% 2.78% 27.5%
1992 12.78 11.86% 31,339 1.29% 3.39% 30.6%
1991 11.81 34.09% 23,372 1.30% 4.25% 23.6%
1990 9.24 (11.28)% 18,122 1.32% 5.22% 33.7%
Class B:
Period Ended April 30, 1995 (e) 12.68 4.65%(c) 396 2.27%(a) 2.07%(a) 36.6%(a)
PRINCOR BLUE CHIP FUND, INC.
Class A:
Six Months Ended April 30, 1995 13.31 7.80%(c) 29,761 1.44%(a) 1.74%(a) 13.3%(a)
Year Ended October 31,
1994 12.45 6.58% 27,246 1.46% 1.72% 5.5%
1993 11.94 5.65% 23,759 1.25% 1.87% 11.2%
1992 11.51 9.92% 19,926 1.56% 1.49% 13.5%
Period Ended October 31, 1991(d) 10.61 6.37%(c) 12,670 1.71%(a) 1.67%(a) .4%(a)
Class B:
Period Ended April 30, 1995(e) 13.28 7.96%(c) 514 2.18%(a) .31%(a) 13.3%(a)
PRINCOR CAPITAL ACCUMULATION FUND, INC.
Class A:
Six Months Ended April 30, 1995 21.22 4.69%(c) 305,133 .84%(a) 2.12%(a) 53.5%(a)
Year Ended October 31,
1994 20.83 6.67% 285,965 .83% 2.02% 31.7%
1993 21.41 10.42% 240,016 .82% 2.16% 24.8%
1992 21.34 11.67% 190,301 .93% 2.17% 38.3%
1991 19.53 40.63% 152,814 .99% 2.72% 19.7%
1990 14.31 (17.82)% 109,507 1.10% 3.10% 27.7%
Class B:
Period Ended April 30, 1995(e) 21.15 7.47%(c) 920 1.68%(a) .58%(a) 53.5%(a)
See accompanying notes.
<FN>
Notes to Financial Highlights
(a) Computed on an annualized basis.
(b) Total return is calculated without the front-end sales charge or
contingent deferred sales charge.
(c) Total return amounts have not been annualized.
(d) Period from March 1, 1991, date shares first offered to public, through
October 31, 1991. Net investment income, aggregating $.01 per share for
the period from the initial purchase of shares on February 11, 1991
through February 28, 1991, was recognized, none of which was
distributed to its sole stockholder, Principal Mutual Life Insurance
Company, during the period. Additionally, the fund incurred unrealized
gains on investments of $.01 per share during this initial interim
period. This represented activities of the fund prior to the initial
public offering of fund shares.
(e) Period from December 9, 1994, date Class B shares first offered to the
public, through April 30, 1995. The Growth Funds Class B shares
recognized no net investment income for the period from the initial
purchase of Class B shares on December 5,1994 through December 8, 1994
The Growth Funds Class B shares incurred unrealized loss during the
initial interim period as follows. This represented Class B share
activities of each fund prior to the initial public offering of Class
B shares:
Per Share
Unrealized
Fund (Loss)
Princor Balanced Fund, Inc (0.19)
Princor Blue Chip Fund, Inc. (0.15)
Princor Capital Accumulation
Fund, Inc. (0.46)
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected data for a share of Capital Stock outstanding throughout each period:
Income from Investment Operations Less Distributions
Net Realized
and
Net Asset Net Unrealized Total Dividends
Value at Invest- Gain from from Net Distributions
Beginning ment (Loss) on Investment Investment from Total
of Period Income Investments Operations Income Capital Gains Distributions
PRINCOR EMERGING GROWTH FUND, INC.
Class A:
<S> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended April 30, 1995 $25.08 $.05 $ 1.70 $ 1.75 $(.02) $(.14) $ (.16)
Year Ended October 31,
1994 23.56 -- 1.61 1.61 -- (.09) (.09)
1993 19.79 .06 3.82 3.88 (.11) -- (.11)
1992 18.33 .14 1.92 2.06 (.15) (.45) (.60)
1991 11.35 .17 7.06 7.23 (.21) (.04) (.25)
1990 14.10 .31 (2.59) (2.28) (.37) (.10) (.47)
Class B:
Period Ended April 30, 1995(d) 23.15 .01 3.47 3.48 (.02) -- (.02)
PRINCOR GROWTH FUND, INC.
Class A:
Six Months Ended April 30, 1995 31.14 .17 1.76 1.93 (.14) (.63) (.77)
Year Ended October 31,
1994 30.41 .26 2.56 2.82 (.28) (1.81) (2.09)
1993 28.63 .40 2.36 2.76 (.42) (.56) (.98)
1992 25.92 .39 3.32 3.71 (.40) (.60) (1.00)
1991 16.57 .41 9.32 9.73 (.38) -- (.38)
1990 19.35 .35 (1.99) (1.64) (.34) (.80) (1.14)
Class B:
Period Ended April 30, 1995(d) 28.33 .15 3.86 4.01 (.14) -- (.14)
PRINCOR WORLD FUND, INC.
Class A:
Six Months Ended April 30, 1995 7.44 .02 (.51) (.49) (.03) (.19) (.22)
Year Ended October 31,
1994 6.85 .01 .64 .65 (.02) (.04) (.06)
1993 5.02 .03 1.98 2.01 (.05) (.13) (.18)
1992 5.24 .06 (.14) (.08) (.06) (.08) (.14)
1991 4.64 .05 .58 .63 (.03) -- (.03)
1990 4.66 .09 (.04) .05 (.07) -- (.07)
Class B:
Period Ended April 30, 1995(d) 6.71 .05 (.02) .03 (.03) -- (.03)
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Ratio of
Net Asset Ratio of Investment
Value at Net Assets at Expenses to Income to Portfolio
End Total End of Period Average Average Turnover
of Period Return(b) (in thousands) Net Assets Net Assets Rate
PRINCOR EMERGING GROWTH FUND, INC.
Class A:
<S> <C> <C> <C> <C> <C> <C>
Six Months Ended April 30, 1995 $26.67 7.05%(c) $ 112,988 1.64%(a) .42%(a) 6.9% (a)
Year Ended October 31,
1994 25.08 6.86% 92,965 1.74% .02% 8.1%
1993 23.56 19.66% 48,668 1.66% .26% 7.0%
1992 19.79 11.63% 29,055 1.74% .80% 5.8%
1991 18.33 64.56% 17,174 1.78% 1.14% 8.4%
1990 11.35 (16.80)% 8,959 1.94% 2.43% 15.8%
Class B:
Period Ended April 30, 1995(d) 26.61 11.27%(c) 3,200 2.24%(a) (.26)%(a) 6.9% (a)
PRINCOR GROWTH FUND, INC.
Class A:
Six Months Ended April 30, 1995 32.30 6.47%(c) 138,003 1.27%(a) 1.19%(a) 4.3% (a)
Year Ended October 31,
1994 31.14 9.82% 116,363 1.30% .95% 13.6%
1993 30.41 9.83% 80,051 1.26% 1.40% 16.4%
1992 28.63 14.76% 63,405 1.19% 1.46% 15.6%
1991 25.92 59.30% 45,892 1.13% 1.85% 10.6%
1990 16.57 (9.20)% 28,917 1.18% 1.88% 9.7%
Class B:
Period Ended April 30, 1995(d) 32.20 9.93%(c) 2,388 1.92%(a) .23%(a) 4.3% (a)
PRINCOR WORLD FUND, INC.
Class A:
Six Months Ended April 30, 1995 6.73 (6.60)%(c) 115,722 1.76%(a) .68% 48.8% (a)
Year Ended October 31,
1994 7.44 9.60% 115,812 1.74% .10% 13.2%
1993 6.85 41.39% 63,718 1.61% .59% 19.5%
1992 5.02 (1.57)% 35,048 1.69% 1.23% 19.9%
1991 5.24 13.82% 26,478 1.72% 1.36% 27.6%
1990 4.64 .94% 16,044 1.79% 1.89% 37.9%
Class B:
Period Ended April 30, 1995(d) 6.71 (2.27)%(c) 1,519 2.47%(a) 1.41%(a) 48.8% (a)
See accompanying notes.
<FN>
Notes to Financial Highlights
(a) Computed on an annualized basis.
(b) Total return is calculated without the front-end sales charge.
(c) Total return amounts have not been annualized.
(d) Period from December 9, 1994, date Class B shares first offered to the
public, through April 30, 1995.The Growth Funds Class B shares recognized
no net investment income for the period from the initial purchase of Class
B shares on December 5, 1994 through December 8, 1994. The Growth Funds
Class B shares incurred unrealized loss during the initial interim period
as follows. This represented Class B share activities of each fund prior
to the initial public offering of Class B shares:
Per Share
Unrealized
Fund (Loss)
Princor Emerging Growth Fund, Inc. (0.77)
Princor Growth Fund, Inc. (0.86)
Princor World Fund, Inc. (0.07)
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
April 30, 1995
STATEMENTS OF ASSETS AND LIABILITIES
(unaudited)
Princor Princor Cash Princor Government
Bond Management Securities Income
INCOME FUNDS Fund, Inc. Fund, Inc. Fund, Inc.
<S> <C> <C> <C>
Assets
Investment in securities -- at value
(cost -- $94,724,137; $505,426,707;
$262,580,072; $21,628,075;
$174,298,004; $94,770,529; and
$65,626,549, respectively) (Note 4)..... $94,549,533 $505,426,707 $252,045,729
Cash....................................... 4,479 41,621 3,657
Receivables:
Dividends and interest.................. 2,153,490 37,620 1,571,754
Investment securities sold.............. - - -
Capital Stock sold...................... 74,493 10,532,711 109,895
Other assets............................... 7,984 36,671 29,510
Total Assets 96,789,979 516,075,330 253,760,545
Liabilities
Accrued expenses........................... 63,595 105,526 196,655
Payables:
Investment securities purchased......... - - 1,000,781
Capital Stock reacquired................ 84,225 7,804,686 158,794
Total Liabilities 147,820 7,910,212 1,356,230
Net Assets Applicable to
Outstanding Shares ...................... $96,642,159 $508,165,118 $252,404,315
Capital Stock (par value: $.01 a share)
Shares authorized.......................... 100,000,000 2,000,000,000 100,000,000
Shares issued and outstanding.............. 9,017,717 508,165,118 23,321,445
Net Assets Consist of:
Capital Stock.............................. $ 90,177 $ 5,081,651 $ 233,214
Additional paid-in capital................. 96,454,141 503,083,467 262,983,079
Accumulated undistributed net
investment income....................... 677,574 - 1,390,181
Accumulated undistributed net realized
(loss) on investment transactions....... (405,129) - (1,667,816)
Net unrealized (depreciation)
of investments.......................... (174,604) - (10,534,343)
Total Net Assets $96,642,159 $508,165,118 $252,404,315
Net Asset Value Per Share:
Class A: Net Assets....................... $95,764,312 $508,138,774 $250,785,220
Shares issued and outstanding. 8,935,647 508,138,774 23,171,617
Net asset value per share...... $10.72 $1.00 $10.82
Class B: Net Assets ................... $877,847 $26,344 $1,619,095
Shares issued and outstanding. 82,070 26,344 149,828
Net asset value per share(1)... $10.70 $1.00 $10.81
<FN>
(1) Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
April 30, 1995
STATEMENTS OF ASSETS AND LIABILITIES
(unaudited)
Princor Princor Princor Tax-Exempt Princor
High Yield Tax-Exempt Cash Management Utilities
INCOME FUNDS Fund, Inc. Bond Fund, Inc. Fund, Inc. Fund, Inc.
<S> <C> <C> <C> <C>
Assets
Investment in securities -- at value
(cost -- $94,724,137; $505,426,707;
$262,580,072; $21,628,075;
$174,298,004; $94,770,529; and
$65,626,549, respectively) (Note 4)..... $21,443,260 $172,878,638 $94,770,529 $61,330,504
Cash........................................ 212,723 69,646 24,651 4,265
Receivables:
Dividends and interest.................. 561,073 3,734,669 727,117 311,668
Investment securities sold.............. - - - 519,773
Capital Stock sold...................... 52,194 165,640 1,977,009 114,990
Other assets............................... 3,033 15,327 7,355 3,535
Total Assets 22,272,283 176,863,920 97,506,661 62,284,735
Liabilities
Accrued expenses........................... 14,808 139,856 30,702 56,226
Payables:
Investment securities purchased......... 700,000 499,525 - 748,340
Capital Stock reacquired................ - 14,514 1,848,522 149,394
Total Liabilities 714,808 653,895 1,879,224 953,960
Net Assets Applicable to
Outstanding Shares ...................... $21,557,475 $176,210,025 $95,627,437 $61,330,775
Capital Stock (par value: $.01 a share)
Shares authorized.......................... 100,000,000 100,000,000 1,000,000,000 100,000,000
Shares issued and outstanding.............. 2,702,524 15,347,918 95,627,437 6,349,865
Net Assets Consist of:
Capital Stock.............................. $ 27,025 $ 153,479 $ 956,274 $ 63,499
Additional paid-in capital................. 24,476,510 178,940,659 94,671,163 68,442,887
Accumulated undistributed net
investment income....................... 203,041 916,570 - 299,431
Accumulated undistributed net realized
(loss) on investment transactions....... (2,964,286) (2,381,317) - (3,178,997)
Net unrealized (depreciation)
of investments.......................... (184,815) (1,419,366) - (4,296,045)
Total Net Assets $21,557,475 $176,210,025 $95,627,437 $61,330,775
Net Asset Value Per Share:
Class A: Net Assets....................... $21,424,258 $174,713,933 $95,601,259 $59,904,617
Shares issued and outstanding.... 2,685,803 15,217,487 95,601,259 6,202,080
Net asset value per share........ $7.98 $11.48 $1.00 $9.66
Class B: Net Assets ................... $133,217 $1,496,092 $26,178 $1,426,158
Shares issued and outstanding... 16,721 130,431 26,178 147,785
Net asset value per share(1).... $7.97 $11.47 $1.00 $9.65
<FN>
(1) Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended April 30, 1995
STATEMENTS OF OPERATIONS
(unaudited)
Princor Princor Cash Princor Government
Bond Management Securities Income
INCOME FUNDS Fund, Inc. Fund, Inc. Fund, Inc.
<S> <C> <C> <C>
Net Investment Income
Income:
Dividends.............................. $ - $ - $ -
Interest............................... 3,914,006 12,191,237 9,512,909
Total Income 3,914,006 12,191,237 9,512,909
Expenses:
Management and investment advisory
fees (Note 3)....................... 157,154 707,599 565,456
Distribution and shareholder servicing
fees--Class A (Note 3).............. 113,253 - 249,201
Distribution and shareholder servicing
fees--Class B (Note 3).............. 1,295 58 2,439
Transfer and administrative services
(Note 3)............................ 130,935 646,457 306,850
Registration fees--Class A............. 10,600 59,044 17,748
Registration fees--Class B............. 91 42 84
Custodian fees ........................ 4,699 16,958 20,588
Auditing and legal fees ............... 3,958 4,966 5,029
Directors' fees ....................... 3,733 3,692 3,764
Other ................................. 7,396 16,920 22,537
Total Expenses 433,114 1,455,736 1,193,696
Net Investment Income 3,480,892 10,735,501 8,319,213
Net Realized and Unrealized
Gain (Loss) on Investments
Net realized (loss) from
investment transactions................ (405,362) - (833,566)
Net increase in unrealized
appreciation/depreciation
on investments......................... 4,460,429 - 13,539,402
Net Realized and Unrealized Gain
on Investments 4,055,067 - 12,705,836
Net Increase in Net Assets
Resulting from Operations $7,535,959 $10,735,501 $21,025,049
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended April 30, 1995
STATEMENTS OF OPERATIONS
(unaudited)
Princor Princor Princor Tax-Exempt Princor
High Yield Tax-Exempt Cash Management Utilities
INCOME FUNDS Fund, Inc. Bond Fund, Inc. Fund, Inc. Fund, Inc.
<S> <C> <C> <C> <C>
Net Investment Income
Income:
Dividends.............................. $ - $ - $ - $1,728,122
Interest............................... 1,036,084 5,650,163 1,730,654 113,730
Total Income 1,036,084 5,650,163 1,730,654 1,841,852
Expenses:
Management and investment advisory
fees (Note 3)....................... 59,911 396,430 133,073 55,346
Distribution and shareholder servicing
fees--Class A (Note 3).............. 24,905 185,281 - 72,020
Distribution and shareholder servicing
fees--Class B (Note 3).............. 226 2,941 58 2,011
Transfer and administrative services
(Note 3)............................ 49,146 153,662 116,505 144,816
Registration fees--Class A............. 7,400 8,981 37,309 11,062
Registration fees--Class B............. 54 118 48 157
Custodian fees ........................ 2,142 3,895 4,878 4,659
Auditing and legal fees ............... 3,713 4,948 4,192 3,833
Directors' fees ....................... 3,733 3,923 3,730 3,722
Other ................................. 2,316 17,331 5,548 4,365
Total Expenses 153,546 777,510 305,341 301,991
Net Investment Income 882,538 4,872,653 1,425,313 1,539,861
Net Realized and Unrealized
Gain (Loss) on Investments
Net realized (loss) from
investment transactions................ (67,044) (1,731,502) - (330,558)
Net increase in unrealized
appreciation/depreciation
on investments......................... 393,717 9,997,724 - 2,917,278
Net Realized and Unrealized Gain
on Investments 326,673 8,266,222 - 2,586,720
Net Increase in Net Assets
Resulting from Operations $1,209,211 $13,138,875 $1,425,313 $4,126,581
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended April 30, 1995
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
Princor Princor Cash Princor Government
Bond Management Securities Income
INCOME FUNDS Fund, Inc. Fund, Inc. Fund, Inc.
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income..................... $ 3,480,892 $ 6,505,178 $ 10,735,501 $ 9,633,432 $ 8,319,213 $ 16,336,007
Net realized gain (loss) from
investment transactions................ (405,362) 104,695 - - (833,566) (752,360)
Net increase (decrease) in unrealized
appreciation/depreciation
on investments......................... 4,460,429 (12,203,552) - - 13,539,402 (32,499,913)
Net Increase (Decrease) in Net Assets
Resulting from Operations 7,535,959 (5,593,679) 10,735,501 9,633,432 21,025,049 (16,916,266)
Net Equalization Charges ................. - - - - - 146,563
Dividends and Distributions to
Shareholders
From net investment income:
Class A................................ (3,426,197) (6,377,064) (10,735,157) (9,633,432) (8,295,858) (15,876,078)
Class B ............................... (6,882) - (344) - (12,333) -
(3,433,079) (6,377,064) (10,735,501) (9,633,432) (8,308,191) (15,876,078)
From net realized gain on investments:
Class A................................ (104,351) (96,038) - - - (2,490,495)
Class B................................ - - - - - -
(104,351) (96,038) - - - (2,490,495)
Total Distributions (3,537,430) (6,473,102) (10,735,501) (9,633,432) (8,308,191) (18,366,573)
Capital Share Transactions (Note 5)
Shares sold:
Class A................................ 9,104,886 33,612,070 1,203,219,479 1,466,697,888 13,439,898 95,058,851
Class B................................ 864,289 - 26,000 - 1,574,453 -
Shares issued in reinvestment of dividends
and distributions:
Class A................................ 2,357,957 4,266,227 10,347,761 9,340,862 6,504,020 14,819,070
Class B................................ 5,953 - 344 - 11,211 -
Shares redeemed:
Class A ............................... (8,479,888) (22,025,515) (1,037,774,415)(1,428,431,391) (31,279,322) (62,021,691)
Class B ............................... (10,895) - - - (600) -
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 3,842,302 15,852,782 175,819,169 47,607,359 (9,750,340) 47,856,230
Total Increase (Decrease) 7,840,831 3,786,001 175,819,169 47,607,359 2,966,518 12,719,954
Net Assets
Beginning of period....................... 88,801,328 85,015,327 332,345,949 284,738,590 249,437,797 236,717,843
End of period (including undistributed net
investment income as set forth below).. $96,642,159 $88,801,328 $ 508,165,118$ 332,345,949 $252,404,315 $249,437,797
Undistributed Net Investment Income....... $ 677,574 $ 629,761 - - $ 1,390,181 $ 1,379,159
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended April 30, 1995
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
Princor Princor Princor Tax-Exempt
High Yield Tax-Exempt Bond Cash Management
INCOME FUNDS Fund, Inc. Fund, Inc. Fund, Inc.
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income..................... $ 882,538 $ 1,551,128 $ 4,872,653 $ 9,870,108 $ 1,425,313 $ 1,733,433
Net realized gain (loss) from
investment transactions................ (67,044) (323,328) (1,731,502) (649,814) - -
Net increase (decrease) in unrealized
appreciation/depreciation
on investments......................... 393,717 (954,699) 9,997,724 (23,104,372) - -
Net Increase (Decrease) in Net Assets
Resulting from Operations 1,209,211 273,101 13,138,875 (13,884,078) 1,425,313 1,733,433
Net Equalization Charges ................. - - - - - -
Dividends and Distributions to
Shareholders
From net investment income:
Class A................................ (817,700) (1,576,325) (4,983,972) (9,577,733) (1,425,135) (1,733,433)
Class B ............................... (1,440) - (13,232) - (178) -
(819,140) (1,576,325) (4,997,204) (9,577,733) (1,425,313) (1,733,433)
From net realized gain on investments:
Class A................................ - - - (2,327,570) - -
Class B................................ - - - - - -
- - - (2,327,570) - -
Total Distributions (819,140) (1,576,325) (4,997,204) (11,905,303) (1,425,313) (1,733,433)
Capital Share Transactions (Note 5)
Shares sold:
Class A................................ 1,654,095 4,181,418 9,410,638 44,140,938 202,766,374 266,977,052
Class B................................ 128,294 - 1,441,532 - 26,000 -
Shares issued in reinvestment of dividends
and distributions:
Class A................................ 606,333 1,151,559 3,402,874 8,767,989 1,385,643 1,689,093
Class B................................ 1,423 - 10,232 - 178 -
Shares redeemed:
Class A ............................... (1,025,133) (3,380,935) (17,621,631) (33,174,660) (188,286,391)(268,153,427)
Class B ............................... - - - - - -
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 1,365,012 1,952,042 (3,356,355) 19,734,267 15,891,804 512,718
Total Increase (Decrease) 1,755,083 648,818 4,785,316 (6,055,114) 15,891,804 512,718
Net Assets
Beginning of period....................... 19,802,392 19,153,574 171,424,709 177,479,823 79,735,633 79,222,915
End of period (including undistributed net
investment income as set forth below).. $21,557,475 $19,802,392 $176,210,025 $171,424,709 $ 95,627,437$ 79,735,633
Undistributed Net Investment Income....... $ 203,041 $ 139,643 $ 916,570 $ 1,041,121 - -
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended April 30, 1995
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
Princor
Utilities
INCOME FUNDS Fund, Inc.
Six Months Year
Ended Ended
April 30, October 31,
1995 1994
<S> <C> <C>
Operations
Net investment income..................... $ 1,539,861 $ 2,771,062
Net realized gain (loss) from
investment transactions................ (330,558) (2,848,439)
Net increase (decrease) in unrealized
appreciation/depreciation
on investments......................... 2,917,278 (8,960,974)
Net Increase (Decrease) in Net Assets
Resulting from Operations 4,126,581 (9,038,351)
Net Equalization Charges ................. - -
Dividends and Distributions to
Shareholders
From net investment income:
Class A................................ (1,558,601) (2,648,682)
Class B ............................... (12,064) -
(1,570,665) (2,648,682)
From net realized gain on investments:
Class A................................ - (96,182)
Class B................................ - -
- (96,182)
Total Distributions (1,570,665) (2,744,864)
Capital Share Transactions (Note 5)
Shares sold:
Class A................................ 5,869,463 32,570,988
Class B................................ 1,429,579 -
Shares issued in reinvestment of dividends
and distributions:
Class A................................ 1,289,370 2,223,596
Class B................................ 10,190 -
Shares redeemed:
Class A ............................... (6,535,433) (16,636,425)
Class B ............................... (35,526) -
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 2,027,643 18,158,159
Total Increase (Decrease) 4,583,559 6,374,944
Net Assets
Beginning of period....................... 56,747,216 50,372,272
End of period (including undistributed net
investment income as set forth below).. $61,330,775 $56,747,216
Undistributed Net Investment Income....... $ 299,431 $ 330,235
See accompanying notes.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(unaudited)
Princor Bond Fund, Inc.
Princor Cash Management Fund, Inc.
Princor Government Securities Income Fund, Inc.
Princor High Yield Fund, Inc.
Princor Tax-Exempt Bond Fund, Inc.
Princor Tax-Exempt Cash Management Fund, Inc.
Princor Utilities Fund, Inc.
Note 1 -- Significant Accounting Policies
Princor Bond Fund, Inc., Princor Cash Management Fund, Inc., Princor
Government Securities Income Fund, Inc., Princor High Yield Fund, Inc., Princor
Tax-Exempt Bond Fund, Inc., Princor Tax-Exempt Cash Management Fund, Inc. and
Princor Utilities Fund, Inc. (the "Income Funds") are registered under the
Investment Company Act of 1940, as amended, as open-end diversified management
investment companies and operate in the mutual fund industry.
On December 8, 1994, the initial purchase of Class B shares of Cash
Management Fund, Inc. and Tax-Exempt Cash Management Fund, Inc. was made by
Princor Management Corporation; the initial purchase of Class B shares of the
other funds was made on December 5, 1994 (see Note 3). All shares outstanding
prior to the initial Class B share purchase have been classified as Class A
shares. Effective December 9, 1994, the Income Funds began offering to the
public both Class A and Class B shares. Except for Princor Cash Management Fund,
Inc. and Princor Tax-Exempt Cash Management Fund, Inc., certain Class A shares
are sold with an initial sales charge based on declining rates which begin at
4.75% of the offering price. Class B shares are sold without an initial sales
charge, but bear a higher ongoing distribution fee and are subject to a
declining contingent deferred sales charge ("CDSC") of up to 4.00% on certain
redemptions redeemed within six years of purchase. Both classes of shares for
each fund represent interests in the same portfolio of investments, and will
vote together as a single class except where required by law or as determined by
their respective Boards of Directors. In addition, the Board of Directors of
each fund declare separate dividends on each class of shares.
With respect to Princor Cash Management Fund, Inc. and Princor Tax-Exempt
Cash Management Fund, Inc., all income, expenses (other than class-specific
expenses), and realized and unrealized gains or losses are allocated daily to
each class of shares based upon the relative proportion of the number of traded
shares outstanding of each class. The other funds allocate such amounts based
upon the relative proportion of the value of shares outstanding of each class.
Class-specific expenses, which include distribution and shareholder servicing
fees and any other items specifically attributable to a particular class, are
charged directly to such class.
Princor Cash Management Fund, Inc. and Princor Tax-Exempt Cash Management
Fund, Inc. value their securities at amortized cost, which approximates market.
Under the amortized cost method, a security is valued by applying a constant
amortization to maturity of the difference between the principal amount due at
maturity and the cost of the security to the fund.
The other funds value securities for which market quotations are readily
available at market value, which is determined using the last reported sale
price or, if no sales are reported, as is regularly the case for some securities
traded over-the-counter, the last reported bid price. When reliable market
quotations are not considered to be readily available, which may be the case,
for example, with respect to certain debt securities and preferred stocks, the
investments are valued by using market quotations, prices provided by market
makers or estimates of market values obtained from yield data and other factors
relating to instruments or securities with similar characteristics in accordance
with procedures established in good faith by each fund's Board of Directors.
Securities with remaining maturities of 60 days or less are valued at amortized
cost, which approximates market.
The Income Funds record investment transactions generally one day after the
trade date. The identified cost basis has been used in determining the net
realized gain or loss from investment transactions and unrealized appreciation
or depreciation on investments. Dividends are taken into income on an accrual
basis as of the ex-dividend date and interest income is recognized on an accrual
basis.
With respect to Princor Cash Management Fund, Inc. and Princor Tax-Exempt
Cash Management Fund, Inc., all net investment income and any realized gains and
losses from investment transactions are declared as dividends daily to
shareholders of record as of that day. Dividends and distributions to
shareholders of the other funds are recorded on the ex-dividend date.
Effective November 1, 1993, the Funds adopted Statement of Position 93-2,
"Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies." The
amount of dividends and distributions to shareholders from net investment income
and net realized gain from investments is determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. To the extent these "book/tax" differences are permanent in nature
(i.e. that they result from other than timing of recognition - "temporary"),
such amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification. No
reclassifications were made for the six months ending April 30, 1995. The
reclassifications for the year ended October 31, 1994 did not materially impact
the financial statements and had no effect on net investment income, net
realized gain (loss) or net assets at October 31, 1994.
On November 1, 1994, Princor Government Securities Income Fund, Inc.
discontinued the accounting practice of equalization, which it had been using
since fiscal year 1986. Equalization is a practice whereby a portion of the
proceeds from sales and cost of purchases of shares, equivalent on a per-share
basis to the amount of the undistributed net investment income on the date of
the transaction, is credited or charged to undistributed net investment income.
The balance of equalization included in undistributed net investment income at
the date of the change, which was immaterial, was transferred to additional
paid-in capital. Such reclassification had no effect on net assets, results of
operations or net asset value per share of the fund.
Note 2 -- Federal Income Taxes
No provision for federal income taxes is considered necessary because each
fund is qualified as a "regulated investment company" under the Internal Revenue
Code and intends to distribute each year substantially all of its net investment
income and realized capital gains to shareholders. The cost of investments for
federal income tax reporting purposes is approximately the same as that for
financial reporting purposes.
Note 3 -- Management Agreement and Transactions With Affiliates
The Income Funds have agreed to pay investment advisory and management fees
to Princor Management Corporation (wholly owned by Princor Financial Services
Corporation, a subsidiary of Principal Mutual Life Insurance Company) (the
"Manager") computed at an annual percentage rate of each fund's average daily
net assets. With the exception of Princor High Yield Fund, Inc. and Princor
Utilities Fund, Inc., the annual rate used in this calculation is .50% of the
first $100 million of each fund's average daily net assets, .45% of the next
$100 million of each fund's average daily net assets, .40% of the next $100
million of each fund's average daily net assets, .35% of the next $100 million
of each fund's average daily net assets and .30% of each fund's average daily
net assets over $400 million. With respect to Princor High Yield Fund, Inc. and
Princor Utilities Fund, Inc., the annual rate is .60% of the first $100 million
of the fund's average daily net assets. The Income Funds also reimburse the
Manager for transfer and administrative services, including the cost of
accounting, data processing, supplies and other services rendered.
The Manager has agreed to reimburse the Income Funds annually for their
total expenses (excluding brokerage commissions, interest and taxes) in excess
of limits prescribed by any state in which the Income Funds' shares are offered
for sale (currently 2 1/2% of the first $30 million of each fund's average
annual net assets, 2% of the next $70 million of such assets and 1 1/2% of such
assets in excess thereof).
The Manager voluntarily waived a portion of its fee for Princor Bond Fund,
Inc. in the amount of $70,185 and $120,999 throughout the six months ended April
30, 1995 and year ended October 31, 1994, respectively. The waiver was in an
amount that maintained a total level of operating expenses as a percentage of
the fund's average net assets attributable to each class on an annualized basis
during such period at or below .95% and 1.70% of Class A and Class B shares,
respectively. The Manager intends to continue such voluntary waiver and, if
necessary, reimburse operating expenses otherwise payable by the fund through
February 29, 1996.
The Manager voluntarily waived a portion of its fee for Princor Cash
Management Fund, Inc. (1995 - $145,430; 1994 - $595,343) and Princor Tax-Exempt
Cash Management Fund, Inc. (1995 - $86,816; 1994 - $150,515) throughout the six
months ended April 30, 1995 and year ended October 31, 1994. The waivers,
through February 28, 1995, were in amounts that maintained a total level of
operating expenses for each fund as a percentage of average net assets
attributable to each class on an annualized basis during such period at or below
.70% and 1.70% of Class A and Class B shares, respectively. During the remainder
of the period ended April 30, 1995, the Manager waived a portion of its fee in
an amount that maintained a total level of operating expenses for each fund as a
percentage of average net assets attributable to each class on an annualized
basis during such period at or below .75% and 1.75% of Class A and Class B
shares, respectively. The Manager intends to continue such voluntary waivers
and, if necessary, reimburse operating expenses otherwise payable by Princor
Cash Management Fund, Inc. and Tax-Exempt Cash Management Fund, Inc. through
February 29, 1996.
The Manager voluntarily waived a portion of its fee for Princor Utilities
Fund, Inc. in the amount of $118,757 and $284,836 throughout the six months
ended April 30, 1995 and year ended October 31, 1994, respectively. The waiver,
through February 28, 1995, was in an amount that maintained a total level of
operating expenses for the fund as a percentage of average net assets
attributable to each class on an annualized basis during such period at or below
1.00% and 1.75% of Class A and Class B shares, respectively. During the
remainder of the period ended April 30, 1995, the Manager waived a portion of
its fee in an amount that maintained a total level of operating expenses as a
percentage of average net assets attributable to each class on an annualized
basis during such period at or below 1.10% and 1.85% of Class A and Class B
shares, respectively. The Manager intends to continue such voluntary waiver and,
if necessary, reimburse operating expenses otherwise payable by the fund through
February 29, 1996.
Princor Financial Services Corporation, as principal underwriter, receives
proceeds of any CDSC on certain Class B share redemptions within six years of
purchase. The charge is based on declining rates, which begin at 4.00% of the
lesser of the current market value or the cost of shares being redeemed. Princor
Financial Services Corporation also retains sales charges on sales of Class A
shares of the Income Funds. The aggregate amount of sales charges retained, by
fund, for the period ended April 30, 1995 were as follows:
Class A
Princor Bond Fund, Inc. $233,826
Princor Government Securities
Income Fund, Inc. 391,698
Princor High Yield Fund, Inc. 39,360
Princor Tax-Exempt Bond
Fund, Inc. 283,143
Princor Utilities Fund, Inc. 159,684
No brokerage commissions were paid by the Income Funds to Princor Financial
Services Corporation during the periods. Brokerage commissions were paid to
another affiliate by Princor Utilities Fund, Inc. in the amount of $1,710 and
$6,005 for the six months ended April 30, 1995 and year ended October 31, 1994,
respectively.
With the exception of Princor Cash Management Fund, Inc. and Princor
Tax-Exempt Cash Management Fund, Inc., the Income Funds bear distribution and
shareholder servicing fees with respect to Class A shares computed at an annual
rate of up to 0.25% of the average daily net assets attributable to Class A
shares of each fund. Effective December 9, 1994, each of the Income Funds
adopted a distribution plan with respect to Class B shares that provides for
distribution and shareholder servicing fees computed at an annual rate of up to
1.00% of the average daily net assets attributable to Class B shares of each
fund. Distribution and shareholder servicing fees are paid to Princor Financial
Services Corporation; a portion of the fees are subsequently remitted to retail
dealers. Pursuant to the distribution agreement, fees unused by the principal
underwriter at the end of the fiscal year are returned to the Income Funds.
At April 30, 1995, Principal Mutual Life Insurance Company, benefit plans
sponsored on behalf of Principal Mutual Life Insurance Company and several joint
ventures (in each of which a subsidiary of Principal Mutual Life Insurance
Company is a participant) owned shares of the Income Funds as follows:
Class A
Princor Bond Fund, Inc. 84,716
Princor Cash Management Fund, Inc. 10,370,425
Princor Government Securities
Income Fund, Inc. 94,029
Princor High Yield Fund, Inc. 1,046,134
Princor Tax-Exempt Bond Fund, Inc. 92,510
Princor Tax-Exempt Cash
Management Fund, Inc. 1,000,000
Princor Utilities Fund, Inc. 285,238
At April 30, 1995, Princor Management Corporation owned shares of the
Income Funds as follows:
Class A Class B
Princor Bond Fund, Inc. -- 101
Princor Cash Management Fund, Inc. 11,132 26,333
Princor Government Securities
Income Fund, Inc. -- 100
Princor High Yield Fund, Inc. -- 134
Princor Tax-Exempt Bond Fund, Inc. -- 96
Princor Tax-Exempt Cash
Management Fund, Inc. 52 26,172
Princor Utilities Fund, Inc. -- 111
At April 30, 1995, Princor Financial Services Corporation owned 93,529 and
2,127,392 Class A shares of Princor Bond Fund, Inc. and Princor Cash Management
Fund, Inc. , respectively; Principal Investors Corporation (wholly owned by
Princor Financial Services Corporation) owned 83,900 Class A shares of Princor
Cash Management Fund, Inc.; and Principal Commercial Advisors, Inc., an indirect
wholly-owned subsidiary of Principal Mutual Life Insurance Company, owned
184,832 Class A shares of Princor Cash Management Fund, Inc.
Note 4 -- Investment Transactions
For the six months ended April 30, 1995, the cost of investment securities
purchased and proceeds from investment securities sold (not including short-term
investments and U.S. government securities) by the Income Funds were as follows:
Purchases Sales
Princor Bond Fund, Inc. $ 8,216,598 $ 3,465,200
Princor High Yield Fund, Inc. 6,833,245 4,949,487
Princor Tax-Exempt Bond Fund, Inc. 16,272,681 20,090,245
Princor Utilities Fund, Inc. 5,552,830 2,146,241
At April 30, 1995, net unrealized depreciation of investments by the Income
Funds was composed of the following:
Net Unrealized
Gross Unrealized (Depreciation)
Appreciation (Depreciation) of Investments
Princor Bond Fund, Inc. $2,453,318 $ (2,627,922) $ (174,604)
Princor Government Securities
Income Fund, Inc. 1,302,543 (11,836,886) (10,534,343)
Princor High Yield Fund, Inc. 362,425 (547,240) (184,815)
Princor Tax-Exempt
Bond Fund, Inc. 3,480,881 4,900,247) (1,419,366)
Princor Utilities Fund, Inc. 1,885,509 (6,181,554) (4,296,045)
Princor Government Securities Income Fund, Inc. may trade portfolio
securities on a "to-be-announced" (TBA) basis. In a TBA transaction, the fund
commits to purchase or sell securities for which all specific information is not
known at the time of the trade. Securities purchased on a TBA basis are not
settled until they are delivered to the fund, normally 15 to 30 days later.
These transactions are subject to market fluctuations and their current value is
determined in the same manner as for other portfolio securities. As of April 30,
1995, TBA purchase commitments involved securities with a face amount of
$1,000,000, cost of $1,000,781 and market value of $1,000,170. Princor
Government Securities Income Fund, Inc. has set aside investment securities and
other assets in excess of the commitments to serve as collateral.
At April 30, 1995, Princor High Yield Fund, Inc. and Princor Tax-Exempt
Bond Fund, Inc. held the following securities which may require registration
under the Securities Act of 1933 or an exemption therefrom in order to effect a
sale in the ordinary course of business.
<TABLE>
<CAPTION>
Value at Value as a
Date of April 30, Percentage of
Fund Security Description Acquisition Cost 1995 Net Assets
<S> <C> <C> <C> <C> <C>
Princor High Yield Fund, Inc. Dominick's Finer Foods, Inc. 04/27/95 $700,000.00 $707,000 3.28%
Senior Subordinated Notes
Princor Tax-Exempt Bond Fund, Inc. Eddyville, Iowa, IDR Ref. Bonds, 01/11/95 859,910.00 912,500 0.52%
Cargill Inc. Project
</TABLE>
The Income Funds' investments are with various issuers in various
industries. The Schedules of Investments contained herein summarize
concentration of credit risk by issuer and industry.
<PAGE>
<TABLE>
<CAPTION>
Note 5 -- Capital Share Transactions
Transactions in Capital Stock by fund were as follows:
Princor Princor Cash Princor Government
Bond Fund, Inc. Management Fund, Inc. Securities Income Fund, Inc.
Six Months Ended April 30, 1995:
Shares sold:
<S> <C> <C> <C>
Class A ......................................... 879,645 1,203,219,479 1,287,509
Class B* ........................................ 82,540 26,000 148,826
Shares issued in reinvestment of dividends and
distributions:
Class A ........................................... 228,936 10,347,761 627,173
Class B* .......................................... 568 344 1,058
Shares redeemed:
Class A ......................................... (818,525) (1,037,774,415) (3,007,025)
Class B* ........................................ (1,038) -- (56)
Net Increase (Decrease) 372,126 175,819,169 (942,515)
Year Ended October 31, 1994:
Shares sold:
Class A ......................................... 3,039,199 1,466,697,888 8,550,182
Shares issued in reinvestment of dividends and
distributions:
Class A ......................................... 393,042 9,340,862 1,352,251
Shares redeemed:
Class A ......................................... (2,021,840) (1,428,431,391) (5,718,185)
Net Increase 1,410,401 47,607,359 4,183,248
Princor Princor Princor Tax-Exempt Princor
High Yield Tax-Exempt Bond Cash Management Utilities
Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc.
Six Months Ended April 30, 1995:
Shares sold:
Class A ......................................... 212,405 849,220 202,766,374 622,321
Class B* ........................................ 16,539 129,514 26,000 150,439
Shares issued in reinvestment of dividends and
distributions:
Class A ........................................... 78,384 310,483 1,385,643 139,030
Class B* .......................................... 182 917 178 1,079
Shares redeemed:
Class A ......................................... (132,515) (1,629,565) (188,286,391) (692,552)
Class B* ........................................ -- -- -- (3,733)
Net Increase (Decrease) 174,995 (339,431) 15,891,804 216,584
Year Ended October 31, 1994:
Shares sold:
Class A ......................................... 514,435 3,702,350 266,977,052 3,178,133
Shares issued in reinvestment of dividends and
distributions:
Class A ......................................... 143,233 739,643 1,689,093 232,342
Shares redeemed:
Class A ......................................... (419,999) (2,814,941) (268,153,427) (1,675,304)
Net Increase (Decrease) 237,669 1,627,052 512,718 (1,735,171)
<FN>
* Period from December 5, 1994 (date operations commenced) through April
30, 1995.
</FN>
</TABLE>
Note 6 -- Line of Credit
The Income Funds have an unsecured line of credit with a bank
which allows each fund to borrow up to $500,000. Borrowings
are made solely to facilitate the handling of unusual and/or
unanticipated short-term cash requirements. Interest is charged
to each fund, based on its borrowings, at a rate equal to the
bank's prime rate. Additionally, a commitment fee is charged at
the annual rate of .25% on the unused portion of the line of
credit. At April 30, 1995, the Income Funds had no outstanding
borrowings under the line of credit.
<PAGE>
SCHEDULES OF INVESTMENTS
INCOME FUNDS
PRINCOR BOND FUND, INC.
Principal
Amount Value
Bonds (97.28%)
Air Transportation, Scheduled (1.57%)
Federal Express Corp. 1994 Pass
Through Cert., Series A310-A3;
8.40%; 3/23/10 $1,500,000 $ 1,520,646
Aircraft & Parts (1.13%)
Textron, Inc. Medium-Term Notes, Series C;
9.80%; 1/10/00 500,000 545,980
9.55%; 3/19/01 500,000 547,035
1,093,015
Beverages (1.08%)
Joseph E. Seagram & Sons Guaranteed
Debentures; 8.38%; 2/15/07 1,000,000 1,040,292
Business Credit Institutions (1.68%)
Gatx Capital Corp. Medium-Term Notes,
Series B; 9.50%; 1/10/02 1,500,000 1,626,471
Cable & Other Pay TV Services (2.34%)
Tele-Communications, Inc. Notes;
7.25%; 8/1/05 2,000,000 1,823,062
Tele-Communications, Inc. Senior
Debentures; 7.88%; 8/1/13 500,000 439,626
2,262,688
Cash Grains (2.70%)
Aktiebolaget SKF Senior Notes;
7.63%; 7/15/03 2,500,000 2,318,182
DEKALB Corp. Notes; 10.00%; 4/15/98 300,000 292,500
2,610,682
Combination Utility Services (1.84%)
Pennsylvania Gas & Water Co. First
Mortgage Bonds; 8.38%; 12/1/02 500,000 502,303
Public Service Electric & Gas Medium-
Term Notes; 8.16%; 5/26/09 1,250,000 1,278,212
1,780,515
Computer & Office Equipment (0.47%)
Apple Computer, Inc. Notes;
6.50%; 2/15/04 500,000 456,472
Construction & Related Machinery (1.15%)
Caterpillar, Inc. Global Debentures;
9.38%; 8/15/11 1,000,000 1,110,959
Consumer Products (1.02%)
RJR Nabisco Capital Corp. Senior Notes;
8.75%; 4/15/04 1,000,000 981,250
Copper Ores (2.69%)
Asarco, Inc. Debentures;
7.88%; 4/15/13 1,500,000 1,426,528
Asarco, Inc. Notes;
7.38%; 2/1/03 1,200,000 1,170,336
2,596,864
Crude Petroleum & Natural Gas (0.57%)
Occidental Petroleum Corp. Medium-Term
Notes; 9.73%; 6/15/01 $ 500,000 $ 548,615
Department Stores (3.39%)
Dillard Investment Co. Notes (Guaranteed
by Parent Co.); 9.25%; 5/1/97 200,000 208,553
Harcourt General, Inc. Subordinated Notes;
9.50%; 3/15/00 400,000 430,459
Sears Roebuck Co. Medium-Term Notes;
9.05%; 2/6/12 500,000 537,855
9.12%; 2/13/12 1,000,000 1,081,110
Sears Roebuck Co. Notes;
8.55%; 8/1/96 1,000,000 1,020,784
3,278,761
Drug Stores & Proprietary Stores (1.83%)
Rite Aid Corp. Senior Debentures;
6.88%; 8/15/13 2,000,000 1,764,080
Eating & Drinking Places (1.25%)
Marriott International Notes;
6.75%; 12/15/03 1,300,000 1,210,916
Electric Services (4.39%)
Cleveland Electric Illuminating Co. First
Mortgage Medium-Term Notes;
7.85%; 7/30/02 1,500,000 1,313,070
Ohio Edison Co. First Mortgage Bonds;
8.25%; 4/1/02 2,000,000 2,023,116
Toledo Edison Co. Debentures;
8.70%; 9/1/02 1,000,000 905,107
4,241,293
Fabricated Rubber Products, NEC (1.70%)
M. A. Hanna Co. Senior Notes;
9.38%; 9/15/03 1,500,000 1,645,539
Farm & Garden Machinery (1.62%)
Tenneco, Inc. Notes;
9.88%; 2/1/01 500,000 551,649
7.88%; 10/1/02 1,000,000 1,010,422
1,562,071
Gas Production & Distribution (2.21%)
Panhandle Eastern Pipeline Sinking Fund
Debentures; 9.88%; 10/15/96 518,000 537,277
Tennessee Gas Pipeline Co. Notes;
9.25%; 5/15/96 400,000 408,748
Transco Energy Co. Notes;
9.38%; 8/15/01 1,100,000 1,192,521
2,138,546
General Government, NEC (4.04%)
Ontario Hydro Debentures;
7.45%; 3/31/13 2,000,000 1,908,360
Province of Saskatchewan, Canada Global
Notes; 8.00%; 2/1/13 2,000,000 1,997,280
3,905,640
Grocery Stores (1.09%)
Food Lion, Inc. Medium-Term Notes;
8.67%; 8/28/06 1,000,000 1,056,920
Household Furniture (1.84%)
Masco Corp. Debentures;
7.13%; 8/15/13 2,000,000 1,782,434
Industrial Inorganic Chemicals (3.24%)
FMC Corp. Senior Notes;
6.38%; 9/1/03 $ 750,000 $ 685,666
Grace, (W.R.) & Co. Guaranteed Notes;
8.00%; 8/15/04 2,500,000 2,449,892
3,135,558
Iron Ores (0.76%)
Cyprus Minerals Co. Notes;
10.13%; 4/1/02 650,000 733,063
Metalworking Machinery (1.24%)
Black & Decker Corp. Notes;
7.00%; 2/1/06 1,300,000 1,194,478
Millwork, Plywood & Structural
Members (1.11%)
Georgia-Pacific Corp. Debentures;
9.50%; 12/1/11 600,000 667,321
Georgia-Pacific Corp. Notes;
10.13%; 5/15/00 400,000 405,349
1,072,670
Miscellaneous Chemical Products (1.49%)
Cabot Corp. Notes; 10.25%; 12/15/97 400,000 428,143
Ferro Corp. Senior Debentures;
7.63%; 5/1/13 1,100,000 1,011,688
1,439,831
Miscellaneous Equipment Rental
& Leasing (1.11%)
McDonnell Douglas Finance Corp.
Medium-Term Notes, Series 9;
9.94%; 6/11/98 1,000,000 1,069,350
Motion Picture Production
& Services (0.44%)
Columbia Pictures Entertainment, Inc.
Senior Subordinated Notes;
9.88%; 2/1/98 400,000 421,280
Motor Vehicles & Equipment (2.20%)
Ford Motor Co. Debentures;
8.88%; 1/15/22 1,000,000 1,071,081
General Motors Corp. Global
Medium-Term Notes;
8.88%; 5/15/03 1,000,000 1,054,150
2,125,231
Paper Mills (8.99%)
Boise Cascade Corp. Notes;
9.90%; 3/15/00 500,000 537,233
9.85%; 6/15/02 1,000,000 1,087,969
Bowater, Inc. Debentures;
9.50%; 10/15/12 1,000,000 1,086,400
9.38%; 12/15/21 1,500,000 1,618,986
Champion International Corp. Notes;
9.88%; 6/1/00 750,000 821,596
Chesapeake Corp. Notes;
9.88%; 5/1/03 1,000,000 1,113,143
7.20%; 3/15/05 600,000 567,652
James River Corp. Notes;
6.70%; 11/15/03 2,000,000 1,852,217
8,685,196
Paperboard Mills (1.57%)
Federal Paper Board Co., Inc. Debentures;
8.88%; 7/1/12 1,500,000 1,518,486
Personal Credit Institutions (4.42%)
Coastal Corp. Senior Notes;
9.75%; 8/1/03 $1,500,000 $ 1,643,004
General Motors Acceptance Corp. Global
Notes; 8.50%; 1/1/03 2,000,000 2,084,596
Household Finance Corp. Senior
Subordinated Notes; 9.63%; 7/15/00 500,000 542,463
4,270,063
Petroleum Refining (8.01%)
Ashland Oil, Inc. Medium-Term Notes;
7.72%; 7/15/13 1,000,000 944,990
7.73%; 7/15/13 750,000 709,440
Mapco, Inc. Medium-Term Notes;
8.48%; 8/5/13 1,000,000 978,170
Pennzoil Co. Debentures;
10.13%; 11/15/09 1,675,000 1,939,284
Sun Co., Inc. Debentures;
9.00%; 11/1/24 2,000,000 2,120,582
Ultramar Credit Corp. Guaranteed
Notes (by Ultramar Corp.);
8.63%; 7/1/02 1,000,000 1,043,199
7,735,665
Photographic Equipment
& Supplies (1.09%)
Xerox Corp. Notes; 9.63%; 9/1/97 1,000,000 1,055,646
Primary Nonferrous Metals (3.99%)
Amax, Inc. Notes; 9.88%; 6/13/01 900,000 974,123
Reynolds Metals Co. Medium-Term Notes;
8.22%; 5/30/07 2,000,000 2,032,060
7.65%; 2/4/08 875,000 848,750
3,854,933
Pulp Mills (2.80%)
International Paper Co. Medium-Term
Notes; 9.70%; 8/15/00 800,000 873,432
ITT Rayonier, Inc. Notes;
7.50%; 10/15/02 1,875,000 1,832,672
2,706,104
Refrigeration & Service
Machinery (2.60%)
Westinghouse Electric Corp. Debentures;
8.63%; 8/1/12 1,000,000 967,348
Westinghouse Electric Corp. Global
Notes; 8.88%; 6/1/01 1,500,000 1,546,740
2,514,088
Rental of Railroad Cars (0.44%)
General American Transportation Corp.
Medium-Term Notes; 10.65%; 11/14/97 400,000 428,293
Sanitary Services (1.78%)
Laidlaw, Inc. Notes; 7.70%; 8/15/02 1,000,000 980,122
Laidlaw, Inc. Senior
Notes; 7.88%; 4/15/05 750,000 744,554
1,724,676
Telephone Communication (1.59%)
Sprint Corp. Notes; 8.13%; 7/15/02 1,500,000 1,539,475
Variety Stores (6.81%)
Dayton-Hudson Corp. Debentures;
9.25%; 8/15/11 1,000,000 1,089,794
Dayton-Hudson Corp. Sinking Fund
Debentures; 9.50%; 10/15/16 900,000 943,642
Variety Stores (con't)
K Mart Corp. Global Notes;
8.13%; 12/1/06 $1,000,000 $ 991,215
K Mart Corp. Medium-Term Notes;
7.55%; 7/27/04 1,000,000 954,630
Shopko Stores, Inc. Senior Notes;
9.00%; 11/15/04 2,500,000 2,596,497
6,575,778
Total Bonds 94,014,533
Commercial Paper (0.55%)
Electronic Distribution Equipment (0.55%)
General Electric Capital Corp.;
5.90%; 5/1/95 535,000 535,000
Total Portfolio Investments (97.83%) 94,549,533
Cash, receivables and other assets, net of
liabilities (2.17%) 2,092,626
Total Net Assets (100.00%) $96,642,159
PRINCOR CASH MANAGEMENT FUND, INC.
Principal
Amount Value
Commercial Paper (98.87%)
Blankbooks & Bookbinding (0.78%)
Warner-Lambert Co.;
5.98%; 7/31/95 $4,000,000 $ 3,939,536
Business Credit Institutions (9.17%)
CIT Group Holdings, Inc.;
6.05%; 5/11/95 1,775,000 1,772,017
6.03%; 5/30/95 3,000,000 2,985,428
6.08%; 6/12/95 3,000,000 2,978,720
6.06%; 6/16/95 3,500,000 3,472,898
6.10%; 7/5/95 2,475,000 2,447,741
6.01%; 8/18/95 2,000,000 1,963,606
6.00%; 8/25/95 2,850,000 2,794,900
International Lease Finance Corp.;
6.01%; 5/26/95 3,000,000 2,987,479
6.03%; 5/30/95 2,125,000 2,114,678
6.18%; 6/14/95 3,050,000 3,026,962
6.18%; 6/15/95 1,050,000 1,041,889
6.06%; 7/5/95 5,500,000 5,439,821
6.08%; 7/11/95 4,000,000 3,952,036
6.00%; 7/20/95 4,000,000 3,946,667
Retailer Funding Corp.;
6.05%; 5/18/95 $3,500,000 $ 3,490,000
5.97%; 5/24/95 2,175,000 2,166,704
46,581,546
Cash Grains (1.43%)
Transmission Agency Northern California;
LOC Industrial Bank of Japan Ltd.;
6.20%; 5/4/95 4,250,000 4,247,804
6.00%; 5/31/95 3,019,000 3,003,905
7,251,709
Combination Utility Services (2.26%)
Iowa-Illinois Gas & Electric Co.;
6.02%; 5/4/95 3,500,000 3,498,244
6.10%; 5/11/95 4,000,000 3,993,222
6.10%; 5/11/95 1,000,000 998,306
Southwest Gas Corp.; LOC Union
Bank of Switzerland;
5.98%; 6/26/95 3,000,000 2,972,093
11,461,865
Computer & Office Equipment (6.02%)
Pitney Bowes Credit Corp.;
5.96%; 5/3/95 3,000,000 2,999,007
6.03%; 6/23/95 3,700,000 3,667,153
Xerox Credit Corp.;
6.00%; 7/14/95 4,000,000 3,950,667
Xerox Corp;
6.03%; 5/3/95 3,000,000 2,998,995
6.02%; 5/23/95 4,475,000 4,458,537
6.05%; 6/1/95 1,675,000 1,666,274
6.02%; 6/8/95 4,000,000 3,974,582
6.05%; 7/6/95 4,000,000 3,955,633
6.03%; 7/7/95 2,950,000 2,916,893
30,587,741
Electric Services (6.63%)
AES Shady Point, Inc.; LOC
Bank of Tokyo Ltd.;
6.08%; 6/1/95 1,100,000 1,094,241
6.10%; 6/1/95 5,000,000 4,973,736
6.19%; 6/6/95 3,000,000 2,981,430
6.02%; 7/19/95 2,000,000 1,973,579
CommEd Fuel Co., Inc.;
LOC Credit Suisse;
6.07%; 5/9/95 1,650,000 1,647,774
6.02%; 5/10/95 3,767,000 3,761,331
6.07%; 5/16/95 2,650,000 2,643,298
6.05%; 5/17/95 4,200,000 4,188,707
6.05%; 6/9/95 2,600,000 2,582,959
6.03%; 6/13/95 3,000,000 2,978,392
6.02%; 6/19/95 2,400,000 2,380,335
6.00%; 7/6/95 2,500,000 2,472,500
33,678,282
Electronic Distribution Equipment (5.47%)
General Electric Capital Corp.;
6.27%; 5/2/95 2,500,000 2,499,565
6.37%; 5/5/95 1,075,000 1,074,239
6.00%; 5/24/95 2,150,000 2,141,758
6.03%; 6/19/95 2,400,000 2,380,302
6.03%; 6/19/95 2,100,000 2,082,764
6.07%; 7/10/95 3,450,000 3,409,281
6.07%; 7/10/95 2,740,000 2,707,660
6.04%; 7/12/95 1,700,000 ` 1,679,464
6.13%; 8/2/95 $3,450,000 $ 3,395,366
6.10%; 8/3/95 3,850,000 3,788,678
General Electric Co.;
6.03%; 7/18/95 2,650,000 2,615,378
27,774,455
Farm & Garden Machinery (0.58%)
Deere (John) Capital Corp.;
6.04%; 6/28/95 3,000,000 2,970,807
Life Insurance (9.95%)
American General Finance Corp.;
6.10%; 5/15/95 2,650,000 2,643,714
6.10%; 5/16/95 3,000,000 2,992,375
6.07%; 7/11/95 4,000,000 3,952,114
6.07%; 7/12/95 3,500,000 3,457,510
6.07%; 7/17/95 4,000,000 3,948,068
6.00%; 8/21/95 2,000,000 1,962,667
6.01%; 8/23/95 4,000,000 3,923,873
6.01%; 8/24/95 2,500,000 2,452,003
American General Corp.;
6.00%; 5/10/95 3,000,000 2,995,500
6.00%; 5/12/95 3,425,000 3,418,721
6.05%; 5/17/95 3,500,000 3,490,589
6.05%; 5/18/95 3,000,000 2,991,429
6.02%; 5/30/95 2,300,000 2,288,846
6.00%; 6/20/95 3,000,000 2,975,000
5.98%; 7/26/95 3,200,000 3,154,286
6.13%; 8/1/95 4,000,000 3,937,338
50,584,033
Motor Vehicles & Equipment (4.95%)
Ford Motor Credit Co.;
6.04%; 5/10/95 4,500,000 4,493,205
6.03%; 5/17/95 2,950,000 2,942,094
6.10%; 5/23/95 2,250,000 2,241,613
6.07%; 6/6/95 3,000,000 2,981,790
6.07%; 7/5/95 1,750,000 1,730,821
6.08%; 7/18/95 2,250,000 2,220,360
6.07%; 7/19/95 2,500,000 2,466,699
6.08%; 8/7/95 3,150,000 3,097,864
6.03%; 8/16/95 3,050,000 2,995,336
25,169,782
Non-Classifiable Establishments (4.96%)
Mitsubishi International Corp.;
6.08%; 5/1/95 1,570,000 1,570,000
6.08%; 5/3/95 400,000 399,865
6.18%; 5/8/95 700,000 699,159
6.03%; 5/15/95 5,000,000 4,988,275
6.08%; 6/1/95 3,000,000 2,984,293
6.05%; 6/13/95 2,500,000 2,481,934
6.03%; 6/14/95 3,650,000 3,623,099
6.06%; 6/15/95 2,000,000 1,984,850
6.05%; 6/22/95 2,075,000 2,056,867
6.04%; 7/11/95 2,000,000 1,976,176
6.07%; 8/4/95 2,500,000 2,459,955
25,224,473
Personal Credit Institutions (18.20%)
American Express Credit Corp.;
6.05%; 5/19/95 3,500,000 3,489,412
6.05%; 5/19/95 3,500,000 3,489,412
6.05%; 5/22/95 3,200,000 3,188,707
6.03%; 6/2/95 2,500,000 2,486,600
6.08%; 6/8/95 $3,500,000 $ 3,477,538
6.10%; 6/8/95 1,500,000 1,490,342
6.10%; 7/21/95 3,500,000 3,451,962
6.08%; 7/25/95 1,775,000 1,749,519
6.08%; 8/9/95 2,500,000 2,457,778
Associates Corp. of North America;
6.02%; 5/5/95 2,000,000 1,998,662
6.02%; 5/5/95 1,975,000 1,973,679
Avco Financial Services, Inc.;
6.02%; 5/8/95 2,850,000 2,846,664
Beneficial Corp.;
6.02%; 5/1/95 2,200,000 2,200,000
6.13%; 5/3/95 5,000,000 4,998,297
6.43%; 5/5/95 1,500,000 1,498,928
6.01%; 5/22/95 1,675,000 1,669,128
6.13%; 6/7/95 5,000,000 4,968,499
6.01%; 8/25/95 1,500,000 1,470,952
Commercial Credit Co.;
6.00%; 5/9/95 4,000,000 3,994,667
6.00%; 5/12/95 2,550,000 2,545,325
Household Finance Corp.;
6.10%; 5/5/95 2,500,000 2,498,305
6.12%; 6/9/95 3,000,000 2,980,110
6.01%; 7/19/95 1,750,000 1,726,920
5.99%; 7/24/95 3,500,000 3,451,082
6.01%; 7/24/95 4,000,000 3,943,907
Norwest Financial, Inc.;
6.10%; 5/16/95 1,725,000 1,720,615
6.04%; 5/18/95 2,500,000 2,492,869
6.01%; 6/12/95 3,100,000 3,078,264
6.04%; 7/7/95 3,725,000 3,683,127
6.05%; 7/13/95 3,000,000 2,963,196
6.05%; 7/13/95 3,000,000 2,963,196
5.99%; 7/21/95 1,830,000 1,805,336
5.99%; 7/27/95 3,775,000 3,720,354
92,473,352
Security Brokers & Dealers (16.23%)
Bear Stearns Cos., Inc.;
6.08%; 5/1/95 2,250,000 2,250,000
6.17%; 5/2/95 5,000,000 4,999,143
6.12%; 5/15/95 2,250,000 2,244,645
6.10%; 7/20/95 4,300,000 4,241,711
6.04%; 7/28/95 2,750,000 2,709,398
Goldman Sachs Group L.P.;
6.50%; 5/1/95 2,500,000 2,500,000
6.50%; 5/4/95 2,500,000 2,498,646
6.50%; 5/8/95 2,500,000 2,496,840
6.50%; 5/9/95 2,450,000 2,446,461
6.03%; 5/25/95 3,800,000 3,784,724
6.14%; 6/1/95 5,000,000 4,973,564
6.05%; 6/2/95 3,000,000 2,983,867
6.75%; 6/15/95 1,000,000 991,563
6.90%; 9/11/95 1,000,000 974,508
6.96%; 9/20/95 1,000,000 972,547
Merrill Lynch & Co., Inc.;
6.10%; 5/8/95 3,000,000 2,996,442
6.10%; 5/12/95 1,050,000 1,048,043
6.05%; 5/22/95 1,500,000 1,494,706
6.12%; 6/5/95 1,050,000 1,043,752
6.10%; 6/13/95 3,500,000 3,474,498
6.10%; 6/14/95 2,250,000 2,233,225
6.20%; 6/15/95 1,400,000 1,389,150
Security Brokers & Dealers (con't)
6.05%; 7/14/95 $3,700,000 $ 3,653,986
6.08%; 8/4/95 2,000,000 1,967,911
6.08%; 8/8/95 2,200,000 2,163,216
6.08%; 8/10/95 1,700,000 1,671,002
6.05%; 8/28/95 2,300,000 2,254,003
Smith Barney, Inc.;
6.00%; 6/21/95 4,000,000 3,966,000
5.98%; 6/22/95 3,500,000 3,469,768
6.00%; 6/26/95 2,000,000 1,981,333
5.98%; 6/27/95 4,000,000 3,962,127
6.00%; 7/25/95 2,700,000 2,661,750
82,498,529
Subdividers & Developers (7.26%)
Hartz 667 Commercial Paper Corp.;
LOC Mitsubishi Bank Ltd.;
6.02%; 5/5/95 2,000,000 1,998,662
Maguire/Thomas Partners
Westlake/Southlake Partnership;
LOC Sumitomo Bank Ltd.;
6.02%; 5/2/95 2,000,000 1,999,665
6.03%; 5/5/95 1,000,000 999,330
6.08%; 5/5/95 2,500,000 2,498,311
6.05%; 5/8/95 1,000,000 998,824
6.04%; 5/15/95 1,000,000 997,651
6.05%; 5/26/95 5,050,000 5,028,783
6.07%; 5/31/95 3,000,000 2,984,825
6.12%; 6/5/95 3,000,000 2,982,150
6.12%; 6/27/95 1,000,000 990,310
6.05%; 7/27/95 925,000 911,476
Towson Town Center, Inc.; LOC
Mitsubishi Bank Ltd.;
6.05%; 5/8/95 3,556,000 3,551,817
6.12%; 5/9/95 2,600,000 2,596,464
6.08%; 5/16/95 1,175,000 1,172,023
6.06%; 6/16/95 3,276,000 3,250,633
6.02%; 7/19/95 4,000,000 3,947,158
36,908,082
Tires & Inner Tubes (4.98%)
Bridgestone/Firestone, Inc.; LOC
Dai-Ichi Kangyo Bank Ltd.;
6.07%; 5/2/95 1,750,000 1,749,705
6.02%; 5/8/95 1,000,000 998,829
6.00%; 5/12/95 3,050,000 3,044,408
6.04%; 7/18/95 5,000,000 4,934,567
6.05%; 7/18/95 3,000,000 2,960,675
Bridgestone/Firestone, Inc.; LOC
Sumitomo Bank Ltd.;
6.02%; 5/11/95 1,000,000 998,328
6.02%; 7/17/95 4,775,000 4,713,516
6.04%; 7/17/95 6,000,000 5,922,487
25,322,515
Total Commercial Paper 502,426,707
Bank Notes (0.59%)
Commercial Banks (0.59%)
Lasalle National Bank;
6.26%; 7/27/95 $2,000,000 $ 2,000,000
7.59%; 12/28/95 1,000,000 1,000,000
3,000,000
Total Portfolio Investments (99.46%) 505,426,707
Cash, receivables and other assets, net of
liabilities (0.54%) 2,738,411
Total Net Assets (100.00%) $508,165,118
PRINCOR GOVERNMENT SECURITIES INCOME
FUND, INC.
Description of Issue Principal
Type Rate Maturity Amount Value
Government National Mortgage Association (GNMA) Certificates (99.50%)
GNMA I 6.00% 10/15/23 $ 190,546 $ 168,140
GNMA I 6.00 10/15/23 46,824 41,318
GNMA I 6.00 10/15/23 937,110 826,915
GNMA I 6.00 10/15/23 983,170 867,559
GNMA I 6.00 10/15/23 4,951,207 4,368,994
GNMA I 6.00 11/15/23 976,124 861,341
GNMA I 6.00 11/15/23 383,649 338,535
GNMA I 6.00 11/15/23 2,004,010 1,768,359
GNMA I 6.00 11/15/23 501,769 442,766
GNMA I 6.00 11/15/23 472,049 416,541
GNMA I 6.00 11/15/23 421,786 372,188
GNMA I 6.00 12/15/23 1,002,074 884,240
GNMA I 6.00 12/15/23 1,006,307 887,976
GNMA I 6.00 1/15/24 1,005,492 887,256
GNMA I 6.00 1/15/24 988,955 872,664
GNMA I 6.00 1/15/24 1,003,766 885,733
GNMA I 6.00 2/15/24 943,311 832,387
GNMA I 6.00 2/15/24 984,444 868,683
GNMA I 6.00 2/15/24 1,003,991 885,931
GNMA I 6.00 3/15/24 1,000,311 882,685
GNMA I 6.50 9/15/23 939,756 860,374
GNMA I 6.50 9/15/23 942,316 862,718
GNMA I 6.50 9/15/23 966,757 885,095
GNMA I 6.50 9/15/23 906,369 829,808
GNMA I 6.50 10/15/23 935,172 856,178
GNMA I 6.50 10/15/23 949,061 868,894
GNMA I 6.50 10/15/23 982,749 899,736
GNMA I 6.50 10/15/23 962,514 881,210
GNMA I 6.50 10/15/23 295,246 270,306
GNMA I 6.50 10/15/23 962,046 880,782
GNMA I 6.50 10/15/23 986,648 903,306
GNMA I 6.50 10/15/23 980,566 897,738
GNMA I 6.50 10/15/23 940,781 861,313
GNMA I 6.50 10/15/23 986,648 903,306
GNMA I 6.50% 10/15/23 $ 962,046 $ 880,782
GNMA I 6.50 10/15/23 921,875 844,005
GNMA I 6.50 10/15/23 980,467 897,647
GNMA I 6.50 11/15/23 959,467 878,421
GNMA I 6.50 11/15/23 951,649 871,263
GNMA I 6.50 11/15/23 971,807 889,719
GNMA I 6.50 12/15/23 995,812 911,696
GNMA I 6.50 12/15/23 995,812 911,696
GNMA I 6.50 12/15/23 1,935,221 1,771,753
GNMA I 6.50 12/15/23 950,624 870,325
GNMA I 6.50 12/15/23 878,266 804,079
GNMA I 6.50 12/15/23 954,132 873,536
GNMA I 6.50 12/15/23 973,403 891,180
GNMA I 6.50 12/15/23 984,582 901,415
GNMA I 6.50 12/15/23 965,166 883,638
GNMA I 6.50 12/15/23 995,812 911,696
GNMA I 6.50 1/15/24 943,386 863,698
GNMA I 6.50 1/15/24 993,259 909,358
GNMA I 6.50 1/15/24 943,386 863,698
GNMA I 6.50 1/15/24 964,876 883,373
GNMA I 6.50 1/15/24 999,285 914,876
GNMA I 6.50 1/15/24 962,747 881,423
GNMA I 6.50 1/15/24 932,883 854,082
GNMA I 6.50 1/15/24 941,798 862,244
GNMA I 6.50 1/15/24 971,335 889,287
GNMA I 6.50 1/15/24 911,963 834,929
GNMA I 6.50 1/15/24 988,961 905,424
GNMA I 6.50 1/15/24 962,200 880,923
GNMA I 6.50 2/15/24 957,693 876,796
GNMA I 6.50 3/15/24 965,437 883,887
GNMA I 6.50 4/15/24 1,008,597 923,401
GNMA I 7.00 10/15/22 952,577 902,176
GNMA I 7.00 10/15/22 898,573 851,030
GNMA I 7.00 10/15/22 869,310 823,315
GNMA I 7.00 10/15/22 932,368 883,036
GNMA I 7.00 10/15/22 965,667 914,573
GNMA I 7.00 10/15/22 932,368 883,036
GNMA I 7.00 11/15/22 959,862 909,076
GNMA I 7.00 11/15/22 939,250 889,554
GNMA I 7.00 11/15/22 907,021 859,031
GNMA I 7.00 11/15/22 907,021 859,031
GNMA I 7.00 11/15/22 959,862 909,076
GNMA I 7.00 11/15/22 959,862 909,076
GNMA I 7.00 11/15/22 900,663 853,009
GNMA I 7.00 11/15/22 969,086 917,811
GNMA I 7.00 11/15/22 969,086 917,811
GNMA I 7.00 11/15/22 969,086 917,811
GNMA I 7.00 11/15/22 969,086 917,811
GNMA I 7.00 11/15/22 1,856,186 1,757,975
GNMA I 7.00 11/15/22 963,436 912,460
GNMA I 7.00 11/15/22 963,436 912,460
GNMA I 7.00 11/15/22 963,436 912,460
GNMA I 7.00 11/15/22 933,253 883,875
GNMA I 7.00 11/15/22 858,456 813,035
GNMA I 7.00 11/15/22 923,826 874,947
GNMA I 7.00 11/15/22 933,253 883,875
GNMA I 7.00 12/15/22 995,464 942,794
GNMA I 7.00 12/15/22 920,960 872,232
GNMA I 7.00 12/15/22 920,960 872,232
GNMA I 7.00 12/15/22 920,960 872,232
GNMA I 7.00 12/15/22 939,789 890,065
GNMA I 7.00 12/15/22 939,789 890,065
GNMA I 7.00% 12/15/22 $ 939,789 $ 890,065
GNMA I 7.00 12/15/22 873,672 827,446
GNMA I 7.00 1/15/23 905,705 857,784
GNMA I 7.00 1/15/23 905,705 857,784
GNMA I 7.00 1/15/23 964,162 913,149
GNMA I 7.00 1/15/23 905,705 857,784
GNMA I 7.00 1/15/23 905,705 857,784
GNMA I 7.00 1/15/23 902,501 854,750
GNMA I 7.00 1/15/23 910,065 861,914
GNMA I 7.00 1/15/23 888,037 841,051
GNMA I 7.00 1/15/23 1,680,146 1,591,249
GNMA I 7.00 1/15/23 905,705 857,784
GNMA I 7.00 1/15/23 937,090 887,509
GNMA I 7.00 1/15/23 946,893 896,793
GNMA I 7.00 1/15/23 878,561 832,076
GNMA I 7.00 2/15/23 950,258 899,980
GNMA I 7.00 2/15/23 934,303 884,869
GNMA I 7.00 2/15/23 934,303 884,869
GNMA I 7.00 2/15/23 950,005 899,741
GNMA I 7.00 2/15/23 950,005 899,741
GNMA I 7.00 2/15/23 950,005 899,741
GNMA I 7.00 2/15/23 950,005 899,741
GNMA I 7.00 3/15/23 958,372 907,664
GNMA I 7.00 3/15/23 952,035 901,663
GNMA I 7.00 3/15/23 930,309 881,087
GNMA I 7.00 3/15/23 849,660 804,705
GNMA I 7.00 3/15/23 958,372 907,664
GNMA I 7.00 4/15/23 932,839 883,483
GNMA I 7.00 7/15/23 808,869 766,072
GNMA I 7.00 7/15/23 24,762 23,452
GNMA I 7.00 7/15/23 148,224 140,382
GNMA I 7.00 7/15/23 708,133 670,666
GNMA I 7.00 7/15/23 120,431 114,059
GNMA I 7.00 7/15/23 910,308 862,143
GNMA I 7.00 7/15/23 941,274 891,471
GNMA I 7.00 7/15/23 42,525 40,275
GNMA I 7.00 7/15/23 89,406 84,676
GNMA I 7.00 7/15/23 935,480 885,984
GNMA I 7.00 7/15/23 922,236 873,441
GNMA I 7.00 8/15/23 916,485 867,994
GNMA I 7.00 8/15/23 895,204 847,839
GNMA I 7.00 8/15/23 815,423 772,280
GNMA I 7.00 8/15/23 1,426,609 1,351,127
GNMA I 7.00 8/15/23 972,223 920,783
GNMA I 7.00 9/15/23 917,521 868,975
GNMA I 7.00 9/15/23 963,434 912,459
GNMA I 7.00 10/15/23 974,397 922,842
GNMA I 7.00 12/15/23 943,639 893,711
GNMA I 7.00 12/15/23 935,304 885,817
GNMA I 7.00 1/15/24 966,743 915,593
GNMA I 7.00 1/15/24 966,904 915,745
GNMA I 7.00 2/15/24 1,773,952 1,680,092
GNMA I 7.00 10/15/24 917,071 868,549
GNMA I 7.50 4/15/17 659,713 655,709
GNMA I 7.50 4/15/17 709,505 705,198
GNMA I 7.50 4/15/17 608,640 603,771
GNMA I 7.50 5/15/17 199,219 197,625
GNMA I 7.50 5/15/17 584,154 580,608
GNMA I 7.50 7/15/18 609,295 602,574
GNMA I 7.50 11/15/21 872,148 851,199
GNMA I 7.50 12/15/21 794,756 775,666
GNMA I 7.50 12/15/21 894,753 873,261
GNMA I 7.50% 12/15/21 $ 714,052 $ 696,901
GNMA I 7.50 2/15/22 782,258 763,468
GNMA I 7.50 2/15/22 750,004 731,989
GNMA I 7.50 2/15/22 750,004 731,989
GNMA I 7.50 3/15/22 739,480 721,717
GNMA I 7.50 3/15/22 764,422 746,060
GNMA I 7.50 3/15/22 516,316 503,914
GNMA I 7.50 3/15/22 719,057 701,785
GNMA I 7.50 3/15/22 892,638 871,197
GNMA I 7.50 4/15/22 751,626 733,572
GNMA I 7.50 4/15/22 707,417 690,424
GNMA I 7.50 4/15/22 826,045 806,203
GNMA I 7.50 4/15/22 741,993 724,171
GNMA I 7.50 4/15/22 756,192 738,028
GNMA I 7.50 4/15/22 705,896 688,941
GNMA I 7.50 4/15/22 883,482 862,261
GNMA I 7.50 4/15/22 822,241 802,491
GNMA I 7.50 4/15/22 643,291 627,840
GNMA I 7.50 5/15/22 836,429 816,338
GNMA I 7.50 7/15/22 886,308 865,019
GNMA I 7.50 7/15/22 916,537 894,522
GNMA I 7.50 8/15/22 905,178 883,435
GNMA I 7.50 8/15/22 851,665 831,208
GNMA I 7.50 8/15/22 863,138 842,405
GNMA I 7.50 8/15/22 659,527 643,685
GNMA I 7.50 8/15/22 900,525 878,895
GNMA I 7.50 8/15/22 838,449 818,309
GNMA I 7.50 8/15/22 765,251 746,870
GNMA I 7.50 8/15/22 770,897 752,380
GNMA I 7.50 8/15/22 822,081 802,334
GNMA I 7.50 8/15/22 771,438 752,908
GNMA I 7.50 8/15/22 634,092 618,861
GNMA I 7.50 8/15/22 818,832 799,164
GNMA I 7.50 8/15/22 791,378 772,370
GNMA I 7.50 8/15/22 842,604 822,365
GNMA I 7.50 8/15/22 903,103 881,410
GNMA I 7.50 11/15/22 833,243 813,228
GNMA I 7.50 12/15/22 983,097 959,483
GNMA I 7.50 12/15/22 858,792 838,163
GNMA I 7.50 2/15/23 931,967 909,582
GNMA I 7.50 2/15/23 953,358 930,459
GNMA I 7.50 2/15/23 959,948 936,890
GNMA I 7.50 4/15/23 852,864 832,378
GNMA I 7.50 4/15/23 911,577 889,681
GNMA I 7.50 4/15/23 1,345,742 1,313,418
GNMA I 7.50 4/15/23 911,577 889,681
GNMA I 7.50 4/15/23 760,371 742,106
GNMA I 7.50 5/15/23 1,306,030 1,274,659
GNMA I 7.50 5/15/23 887,118 865,809
GNMA I 7.50 5/15/23 916,448 894,435
GNMA I 7.50 5/15/23 693,954 677,285
GNMA I 7.50 5/15/23 1,625,659 1,586,610
GNMA I 7.50 5/15/23 848,061 827,690
GNMA I 7.50 5/15/23 847,343 826,990
GNMA I 7.50 5/15/23 890,675 869,281
GNMA I 7.50 6/15/23 882,320 861,127
GNMA I 7.50% 6/15/23 $ 894,532 $ 873,046
GNMA I 7.50 8/15/23 2,612,582 2,549,828
GNMA I 7.50 8/15/23 971,806 948,463
GNMA I 7.50 9/15/23 1,011,452 987,157
GNMA I 7.50 10/15/23 934,799 912,345
GNMA I 7.50 11/15/23 1,010,209 985,944
GNMA I 7.50 1/15/24 995,746 971,829
GNMA I 7.50 1/15/24 872,284 851,332
GNMA I 7.50 6/15/24 1,012,543 988,222
GNMA I 8.00 TBA* 1,000,000 1,000,170
GNMA I 8.00 8/15/16 425,874 433,127
GNMA I 8.00 8/15/16 413,649 419,005
GNMA I 8.00 9/15/16 398,640 403,802
GNMA I 8.00 11/15/16 607,960 615,833
GNMA I 8.00 12/15/16 416,441 421,834
GNMA I 8.00 4/15/17 693,516 702,497
GNMA I 8.00 4/15/17 707,451 716,612
GNMA I 8.00 4/15/17 422,141 428,485
GNMA I 8.00 4/15/17 303,486 308,048
GNMA I 8.00 4/15/17 3,195,144 3,243,167
GNMA I 8.00 4/15/17 580,602 589,328
GNMA I 8.00 5/15/17 492,316 498,691
GNMA I 8.00 5/15/17 430,729 436,307
GNMA I 8.00 6/15/17 661,963 669,112
GNMA I 8.00 6/15/17 593,644 603,753
GNMA I 8.00 6/15/17 665,850 674,473
GNMA I 8.00 6/15/17 532,285 539,178
GNMA I 8.00 7/15/17 545,386 552,449
GNMA I 8.00 3/15/20 745,689 752,705
GNMA I 8.00 4/15/21 807,856 807,994
GNMA I 8.00 6/15/21 834,923 842,780
GNMA I 8.00 7/15/21 583,572 583,671
GNMA I 8.00 9/15/21 732,726 739,621
GNMA I 8.00 11/15/21 668,388 668,502
GNMA I 8.00 11/15/21 657,816 657,928
GNMA I 8.00 2/15/22 592,739 592,840
GNMA I 8.00 3/15/22 910,595 910,750
GNMA I 8.00 3/15/22 662,785 662,898
GNMA I 8.00 3/15/22 663,863 663,976
GNMA I 8.00 3/15/22 661,357 661,469
GNMA I 8.00 5/15/22 4,039,277 4,039,964
GNMA I 8.00 5/15/22 802,659 802,796
GNMA I 8.00 5/15/22 802,659 802,796
GNMA I 8.00 6/15/22 614,927 615,032
GNMA I 8.00 6/15/22 1,244,514 1,244,725
GNMA I 8.00 7/15/22 590,323 590,423
GNMA I 8.00 6/15/24 1,011,197 1,011,368
GNMA I 8.00 8/15/24 973,066 973,231
GNMA I 8.00 10/15/24 1,001,659 1,001,829
GNMA I 8.00 4/15/25 1,004,665 1,004,836
GNMA I 8.00 4/15/25 1,019,717 1,019,890
GNMA I 8.50 1/15/17 1,792,840 1,849,386
GNMA I 8.50 3/15/17 1,102,488 1,137,260
GNMA I 8.50 5/15/17 668,706 689,797
GNMA I 8.50 6/15/17 359,076 370,401
GNMA I 8.50 7/15/17 445,517 459,568
GNMA I 8.50 3/15/20 468,718 481,523
GNMA I 8.50 12/15/20 241,964 246,954
GNMA I 8.50 7/15/21 416,716 425,309
GNMA I 8.50 8/15/21 212,012 216,383
GNMA I 8.50 9/15/21 640,091 653,290
GNMA I 8.50 12/15/21 722,979 737,887
GNMA I 8.50 1/15/22 543,463 554,669
GNMA I 8.50% 1/15/22 $ 543,463 $ 554,669
GNMA I 8.50 1/15/22 521,253 532,001
GNMA I 8.50 1/15/22 507,828 518,299
GNMA I 8.50 2/15/22 307,133 315,524
GNMA I 8.50 2/15/22 475,852 485,664
GNMA I 8.50 2/15/22 375,604 383,349
GNMA I 8.50 2/15/22 313,273 319,733
GNMA I 8.50 2/15/22 602,141 614,557
GNMA I 8.50 2/15/22 467,501 477,140
GNMA I 8.50 3/15/22 493,484 503,660
GNMA I 8.50 7/15/24 972,047 992,090
GNMA I 8.50 9/15/24 1,015,017 1,035,946
GNMA I 8.50 11/15/24 2,033,109 2,075,032
GNMA I 8.50 12/15/24 997,761 1,018,335
GNMA I 8.50 1/15/25 997,647 1,018,218
GNMA I 9.00 11/15/22 1,831,635 1,901,457
GNMA GPM 9.00 3/15/09 210,697 218,531
GNMA GPM 9.00 4/15/09 126,510 131,213
GNMA GPM 9.00 5/15/09 154,736 160,489
GNMA GPM 9.00 5/15/09 66,026 68,481
GNMA GPM 9.00 5/15/09 114,269 118,518
GNMA GPM 9.00 5/15/09 239,142 248,033
GNMA GPM 9.00 5/15/09 295,846 306,845
GNMA GPM 9.00 5/15/09 279,506 289,898
GNMA GPM 9.00 5/15/09 336,259 348,762
GNMA GPM 9.00 5/15/09 336,259 348,762
GNMA GPM 9.00 6/15/09 196,145 203,438
GNMA GPM 9.00 10/15/09 138,944 144,110
Total GNMA Certificates 251,145,729
Federal Agency Short-Term Obligations (0.36%)
Federal Home Loan Mortgage Corporation;
5.85%; 5/1/95 900,000 900,000
Total Portfolio Investments (99.86%) 252,045,729
Cash, receivables and other assets, net of
liabilities (0.14%) 358,586
Total Net Assets (100.00%) $252,404,315
*Securities purchased on a to-be-announced basis.
PRINCOR HIGH YIELD FUND, INC.
Principal
Amount Value
Bonds (97.04%)
Agricultural Chemicals (3.21%)
IMC Fertilizer Group, Inc. Senior
Debentures; 9.45%; 12/15/11 $700,000 $ 691,250
Aircraft & Parts (2.67%)
Rohr Industries, Inc. Subordinated
Debentures; 9.25%; 3/1/17 700,000 575,750
Blast Furnace & Basic Steel
Products (1.87%)
Weirton Steel Corp. Senior Notes;
10.88%; 10/15/99 400,000 404,000
Broadwoven Fabric Mills, Cotton (2.87%)
J.P. Stevens & Co., Inc. Sinking Fund
Debentures; 9.00%; 3/1/17 700,000 617,750
Cable & Other Pay TV Services (3.27%)
Jones Intercable, Inc. Senior Notes;
9.63%; 3/15/02 700,000 705,250
Consumer Products (2.72%)
RJR Nabisco, Inc. Senior Notes;
8.75%; 8/15/05 600,000 586,500
Communications Equipment (2.89%)
Rogers Cantel Mobile, Inc. Senior
Secured Guaranteed Notes;
10.75%; 11/1/01 600,000 622,500
Computer & Office Equipment (3.48%)
Dell Computer Corp. Senior Notes;
11.00%; 8/15/00 700,000 750,750
Electric Services (2.73%)
Tucson Electric Power Co. First Mortgage
Bonds; 8.50%; 11/1/99 600,000 588,032
Engines & Turbines (2.92%)
Outboard Marine Debentures;
9.13%; 4/15/17 700,000 630,000
Ferroalloy Ores, Except Vanadium (2.76%)
Geneva Steel Co. Senior Notes;
9.50%; 1/15/04 700,000 595,000
Forest Products (3.04%)
Doman Industries Ltd. Senior Notes;
8.75%; 3/15/04 700,000 654,486
Fuel Dealers (3.07%)
Petroleum Heat & Power Co., Inc.
Subordinated Notes;
10.13%; 4/1/03 700,000 661,500
General Government, NEC (2.37%)
Republic of Argentina Global Bonds;
8.38%; 12/20/03 700,000 511,000
Groceries & Related Products (6.46%)
Fleming Cos., Inc. Senior Notes;
10.63%; 12/15/01 700,000 717,500
Rykoff-Sexton, Inc. Senior
Subordinated Notes;
8.88%; 11/1/03 700,000 675,500
1,393,000
Grocery Stores (3.28%)
Dominick's Finer Foods, Inc. Senior
Subordinated Notes;
10.88%; 5/1/05 700,000(a) 707,000
Hotels & Motels (6.21%)
Bally's Grand, Inc. First Mortgage
Notes; 10.38%; 12/15/03 $700,000$ 679,000
John Q. Hammons Hotels, L.P. &
Finance Corp. First Mortgage
Notes; 8.88%; 2/15/04 700,000 660,625
1,339,625
Knitting Mills (3.28%)
Tultex Corp. Senior Notes;
10.63%; 3/15/05 700,000 706,125
Meat Products (1.87%)
Chiquita Brands International, Inc.
Subordinated Notes;
11.50%; 6/1/01 400,000 403,000
Miscellaneous Converted Paper
Products (3.28%)
Drypers Corp. Senior Notes;
12.50%; 11/1/02 700,000 707,000
Miscellaneous General Merchandise
Stores (2.60%)
Service Merchandise, Inc. Senior
Subordinated Notes;
9.00%; 12/15/04 700,000 560,875
Miscellaneous Plastics Products,
NEC (4.47%)
Congoleum Corp. Senior Notes;
9.00%; 2/1/01 700,000 661,500
Plastic Containers, Inc. Senior Secured
Notes; 10.75%; 4/1/01 300,000 303,000
964,500
Motor Vehicles & Equipment (3.02%)
Lear Seating Corp. Subordinated
Notes; 8.25%; 2/1/02 700,000 651,000
Paper Mills (1.41%)
Southwest Forest Industries, Inc.
Subordinated Debentures;
12.13%; 9/15/01 300,000 304,500
Paperboard Containers & Boxes (3.42%)
Riverwood International Corp. Senior
Notes; 10.75%; 6/15/00 700,000 738,500
Petroleum Refining (3.25%)
Crown Central Petroleum Corp. Senior
Notes; 10.88%; 2/1/05 700,000 700,000
Plastic Materials & Synthetics (0.55%)
Dow Corning Corp. Debentures;
9.38%; 2/1/08 200,000 118,001
Pulp Mills (3.16%)
Magnetek, Inc. Senior Subordinated
Debentures; 10.75%; 11/15/98 $650,000$ 680,875
Refrigeration & Service Machinery (2.91%)
Inter-City Products Corp. Senior Secured
Notes; 9.75%; 3/1/00 700,000 626,500
Soap, Cleaners, & Toilet Goods (1.65%)
Coty, Inc. Senior Subordinated Notes;
10.25%; 5/1/05 350,000 354,812
Telephone Communication (6.35%)
Paging Network, Inc. Senior Debentures;
8.88%; 2/1/06 700,000 620,375
Rogers Cablesystems Ltd. Senior
Secured Second Priority Notes;
9.63%; 8/1/02 750,000 749,063
1,369,438
Total Bonds 20,918,519
Commercial Paper (2.43%)
Life Insurance (2.43%)
Prudential Funding Corp.;
5.92%; 5/4/95 525,000 524,741
Total Portfolio Investments (99.47%) 21,443,260
Cash, receivables and other assets, net of
liabilities (0.53%) 114,215
Total Net Assets (100.00%) $21,557,475
(a) Restricted security - See Note 4 to the financial statements.
PRINCOR TAX-EXEMPT BOND FUND, INC.
Principal
Amount Value
Long-Term Tax-Exempt Bonds (97.60%)
Alabama (2.75%)
Courtland, Alabama IDB IDR Bonds
for Champion International, Series A;
7.20%; 12/1/13 $3,815,000 $ 4,034,363
Courtland, Alabama IDB Solid Waste
Disposal Rev. Bonds for Champion
International Corp. Project;
7.00%; 6/1/22 800,000 810,000
4,844,363
Alaska (1.58%)
Valdez, Alaska Terminal Rev. Ref. Bonds,
BP Pipelines, Inc. Project, Series C;
5.65%; 12/1/28 3,100,000 2,786,125
Arizona (3.70%)
Navajo County Arizona Pollution Control
Corp. Rev. Ref. Bonds, Arizona Public
Service Co., Series 1993A;
5.88%; 8/15/28 $7,100,000$ 6,514,250
Arkansas (2.89%)
City of Blytheville, Arkansas Solid Waste
Recycling & Sewer Treatment Rev.
Bonds, Series 1992, Nucor Corp.
Project; 6.90%; 12/1/21 4,610,000 4,771,350
City of Little Rock, Arkansas; Health Fac.
Board Healthcare Rev. Ref. Bond for
Baptist Medical Center; BRI Series
1993; 5.50%; 9/1/15 350,000 313,250
5,084,600
California (1.86%)
Abag Finance Authority for Nonprofit
Corp., Cert.of Participation,
Stanford University Hospital;
5.00%; 11/1/04 750,000 687,187
5.50%; 11/1/13 1,250,000 1,126,563
5.25%; 11/1/20 1,750,000 1,463,437
3,277,187
Colorado (2.74%)
City & County of Denver, Colorado,
Airport System Rev. Bonds,
Series 1991D;
7.75%; 11/15/13 3,185,000 3,491,556
Colorado Health Fac. Authority
Rev. Bonds for Sisters of Charity
Healthcare Systems, Series 1994;
5.25%; 5/15/14 1,500,000 1,340,625
4,832,181
Georgia (3.24%)
Coweta County, Georgia Dev. Authority
Pollution Control Rev. Bonds,
Georgia Power Co., Yates Project;
6.00%; 3/1/18 2,500,000 2,371,875
Fulco, Georgia, Hospital Authority Rev.
Anticipation Cert. for St. Joseph's
Hospital of Atlanta, Inc.;
5.50%; 10/1/14 2,000,000 1,727,500
Municipal Electric Authority of Georgia
Power Rev. Bonds, Series R;
7.30%; 1/1/09 1,505,000 1,608,469
5,707,844
Illinois (16.87%)
Chicago, Illinois O'Hare International
Airport Special Fac. Rev. Bonds for
American Airlines, Inc. Project-A;
7.88%; 11/1/25 6,010,000 6,220,350
City of Chicago, Illinois Adj. Rate Gas
Supply Rev. Bonds, Series 1985A,
Peoples Gas Light & Coke Project;
6.88%; 3/1/15 3,800,000 4,075,500
Illinois Dev. Financial Authority Pollution
Control Rev. Bonds for Illinois
Power Co.; 7.63%; 12/1/16 2,050,000 2,173,000
Illinois Health Fac. Authority for Sarah Bush
Lincoln Health Center Area E-7 Hospital
Association Bonds, Series 1987;
7.20%; 4/1/01 $ 150,000 $ 157,125
7.38%; 4/1/17 850,000 874,437
Illinois Health Fac. Authority Ref. Rev.
Bonds for OSF Healthcare System;
6.00%; 11/15/10 500,000 474,375
6.00%; 11/15/13 500,000 469,375
6.00%; 11/15/23 660,000 603,900
Illinois Health Fac. Authority Ref. Rev.
Bonds for OSF Healthcare System,
Series 1993; 5.75%; 11/15/07 1,600,000 1,524,000
Illinois Health Fac. Authority Rev. Bonds
for Sarah Bush Lincoln Health
Center, Series 1992;
7.25%; 5/15/12 2,950,000 2,975,812
7.25%; 5/15/22 1,515,000 1,518,788
Illinois Health Fac. Authority Rev. Bonds
for South Suburban Hospital,
Series 1992;
7.00%; 2/15/09 500,000 508,125
7.00%; 2/15/18 1,250,000 1,270,313
Illinois Health Fac. Authority Rev. Bonds,
Northwestern Memorial Hospital,
Series 1994A;
5.60%; 8/15/06 500,000 484,375
5.75%; 8/15/08 615,000 591,169
5.80%; 8/15/09 840,000 804,300
6.10%; 8/15/14 1,000,000 976,250
Illinois Health Fac. Authority Rev. Ref.
Bonds for Advocate Healthcare,
Series A; 6.75%; 4/15/12 2,000,000 2,042,500
Regional Transportation Authority,
Illinois General Obligation Bonds,
Series 1994A; 6.25%; 6/1/15 2,000,000 1,985,000
29,728,694
Indiana (6.98%)
City of Petersburg, Indiana, Pollution
Control Rev. Bonds, for Indianapolis
Power & Light Co. Project,
Series 1993A; 6.10%; 1/1/16 3,000,000 2,906,250
Indiana Health Fac. Financing Authority
Hospital Rev. Ref. Bonds, Welborn
Memorial Baptist Hospital, Series 1993;
5.63%; 7/1/23 2,360,000 2,020,750
Lawrenceburg, Indiana Pollution Control
Rev. Ref. Bonds, Indiana Michigan
Power Co. Project,
Series D; 7.00%; 4/1/15 1,000,000 1,022,500
Series E; 5.90%; 11/1/19 3,220,000 2,877,875
Sullivan, Indiana, Pollution Control Rev.
Ref. Bonds, Indiana Michigan Power Co.
Project, Series C; 5.95%; 5/1/09 2,500,000 2,334,375
Warrick County, Indiana Environmental
Improvement Rev. Bonds, Southern
Indiana Gas & Electric, Series 1993B;
6.00%; 5/1/23 1,190,000 1,127,525
12,289,275
Iowa (4.89%)
Chillicothe, Iowa Pollution Control Rev.
Bonds for Iowa Southern Utilities Co.,
Series 1977; 5.95%; 2/1/07 $ 500,000 $ 492,500
City of Muscatine, Iowa, Electric Rev.
Ref. Bonds, Series 1986;
6.00%; 1/1/06 160,000 158,200
5.00%; 1/1/07 1,665,000 1,475,606
Eddyville, Iowa, IDR Ref. Bonds,
Cargill, Inc. Project;
5.63%; 12/1/13 1,000,000(a) 912,500
Iowa Finance Authority Hospital Fac.
Ref. Rev. Bonds for Jennie
Edmundson Memorial Hospital;
7.40%; 11/1/06 550,000 571,313
7.65%; 11/1/16 4,900,000 5,010,250
8,620,369
Kentucky (1.01%)
City of Ashland, Kentucky Sewage and
Solid Waste Rev. Bonds for Ashland,
Inc. Project, Series 1995;
7.13%; 2/1/22 750,000 761,250
City of Ashland, Kentucky, Solid Waste
Rev. Bonds for Ashland Oil, Inc.
Project, Series 1991;
7.20%; 10/1/20 1,000,000 1,022,500
1,783,750
Louisiana (1.15%)
St. Charles Parish, Louisiana Pollution
Control Rev. Bonds for Louisiana
Power & Light Co. Project;
7.50%; 6/1/21 1,950,000 2,018,250
Maine (2.31%)
Skowhegan, Maine, Pollution Control
Rev. Ref. Bonds for Scott Paper
Co. Project, Series 1993;
5.90%; 11/1/13 4,450,000 4,077,312
Michigan (1.26%)
Michigan State Hospital Financing
Authority Hospital Rev. Bonds for
Detroit Medical Center, Series 1993B;
5.75%; 8/15/13 600,000 542,250
5.50%; 8/15/23 2,000,000 1,685,000
2,227,250
Minnesota (1.36%)
City of Bass Brook, Minnesota, Pollution
Control Ref. Rev. Bonds for Minnesota
Power & Light Project; 6.00%; 7/1/22 2,500,000 2,393,750
Missouri (2.71%)
Missouri State Environmental Improvement
& Energy Authority Rev. Bonds, Union
Electric Co., Series 1993;
5.45%; 10/1/28 3,050,000 2,626,813
Missouri State Health & Educational Fac.
Authority Health Fac. Rev., BJC
Health System, Series 1994A;
6.75%; 5/15/12 2,000,000 2,155,000
4,781,813
Montana (1.06%)
Forsyth, Montana, Pollution Control Rev.
Ref. Bonds, Montana Power Co.,
Colstrip Project, Series 1993A;
6.13%; 5/1/23 2,000,000 1,865,000
Nebraska (1.98%)
Nebraska Public Power Dist. Power
Supply System Rev. Bonds;
5.30%; 1/1/02 1,000,000 997,500
5.40%; 1/1/03 1,500,000 1,496,250
5.50%; 1/1/04 1,000,000 997,500
3,491,250
Nevada (2.08%)
Clark County, Nevada, IDR Ref. Bonds,
Nevada Power Co. Project,
Series 1992C; 7.20%; 10/1/22 3,600,000 3,667,500
New Mexico (1.15%)
City of Lordsburg, New Mexico, Pollution
Control Rev. Bonds for Phelps Dodge
Corp. Project; 6.50%; 4/1/13 2,000,000 2,025,000
North Carolina (3.88%)
Martin County, North Carolina Industrial
Fac. & Pollution Control Finance
Authority Solid Waste Rev. Bonds,
Weyerhaeuser; 6.80%; 5/1/24 3,750,000 3,806,250
North Carolina Medical Care Hospital
Rev. Bonds for Rex Hospital Project;
6.13%; 6/1/10 1,700,000 1,710,625
North Carolina Municipal Power Agency
Catawba Electric Rev. Bonds;
6.00%; 1/1/15 1,400,000 1,321,250
6,838,125
North Dakota (1.16%)
Mercer County, North Dakota, Pollution
Control Rev. Bonds, Ottertail Power
Co. Project, Series 1991;
6.90%; 2/1/19 1,950,000 2,040,187
Ohio (4.95%)
Cuyahoga County, Ohio, Hospital Rev.
Bonds for Meridia Health Systems,
Series 1991;
7.25%; 8/15/19 1,445,000 1,511,831
7.00%; 8/15/23 250,000 258,438
Lorain County, Ohio Hospital Ref. Bonds,
Humility Mary Health Care, Series A;
5.90%; 12/15/08 2,270,000 2,241,625
Ohio Air Quality Dev. Rev. Bonds,
Columbus Southern Power Co. Project,
Series 1985B; 6.25%; 12/1/20 4,900,000 4,704,000
8,715,894
Oklahoma (3.91%)
Midwest City, Oklahoma Memorial
Hospital Authority for Midwest City
Regional Hospital, Series 1992;
7.38%; 4/1/12 $2,970,000 $ 3,047,962
7.38%; 4/1/22 2,350,000 2,376,438
Midwest City, Oklahoma Memorial
Hospital Authority Rev. Ref. Bonds;
7.50%; 7/1/14 200,000 203,000
Tulsa Industrial Authority Rev. Bonds,
St. John Medical Center Project, Series
1994; 6.25%; 2/15/14 1,280,000 1,264,000
6,891,400
South Carolina (1.02%)
York County, South Carolina Exempt Fac.
Industrial Rev. Bonds for Hoechst
Celanese Project, Series 1994;
5.70%; 1/1/24 2,000,000 1,787,500
South Dakota (0.59%)
Pennington County, South Dakota Pollution
Control Rev. Ref. Bonds for Black Hills
Power & Light Co. Project;
6.70%; 6/1/10 1,000,000 1,031,250
Texas (5.26%)
Brazos River Authority, Texas, Pollution
Control Rev. Bonds for Houston
Lighting & Power;
8.25%; 5/1/15 820,000 875,350
7.75%; 10/1/15 855,000 909,506
8.25%; 5/1/19 500,000 533,750
Matagorda County, Texas, Navigational
District No. 1 Pollution Control Rev.
Bonds for Central Power & Light Co.;
7.50%; 12/15/14 2,585,000 2,798,263
6.00%; 7/1/28 1,000,000 933,750
Sabine River Authority Pollution Control
Rev. Bonds for Texas Utilities Co.
Project; 7.75%; 4/1/16 2,155,000 2,230,425
Tarrant County, Texas, Health Fac. Dev.
Corp. Harris Methodist Health System
Rev. Bonds; 5.90%; 9/1/06 1,000,000 996,250
9,277,294
Utah (0.77%)
Intermountain Power Agency, Utah Power
Supply, Rev. Ref. Bonds, Series 1993A;
5.50%; 7/1/20 1,500,000 1,357,500
Virginia (3.00%)
Arlington County, Virginia, IDA Hospital
Fac. Rev. Ref. Bonds, Arlington Hospital,
Series 1993; 5.00%; 9/1/21 2,715,000 2,192,363
Penninsula Ports Authority of Virginia,
Dominion Terminal Associates Project -
The Pittson Co.; 7.38%; 6/1/20 3,000,000 3,101,250
5,293,613
Washington (3.21%)
City of Seattle, Washington Municipal
Light and Power Rev. Bonds;
1993; 5.10%; 11/1/05 1,950,000 1,847,625
1994; 6.63%; 7/1/16 1,000,000 1,041,250
Pilchuck Dev. Public Corp., State of
Washington, Special Fac. Airport Rev.
Bonds, Series 1993, Tramco, Inc. Project
for BF Goodrich; 6.00%; 8/1/23 3,155,000 2,772,456
5,661,331
West Virginia (5.40%)
Marshall County, West Virginia, Pollution
Control Rev. Bonds for Ohio Power
Co. Project;
Series C; 6.85%; 6/1/22 1,200,000 1,233,000
Series D; 5.90%; 4/1/22 4,500,000 4,370,625
Putnam County, West Virginia, Pollution
Control Rev. Bonds for Appalachian
Power Co. Project, Series C;
6.60%; 7/1/19 3,875,000 3,908,906
9,512,531
Wisconsin (0.88%)
Pleasant Prairie, Wisconsin Pollution
Control Rev. Bonds for Wisconsin
Electric Power Co. Project;
9.75%; 9/15/15 1,500,000 1,556,250
Total Long-Term Tax-Exempt Bonds 171,978,638
Short-Term Tax-Exempt Bonds (0.28%)
Massachusetts (0.11%)
Commonwealth of Massachusetts, Dedicated
Income Tax Bonds, Series B; LOC
National Westminster;
5.15%; 5/1/95*; 12/1/97 200,000 200,000
Pennsylvania (0.17%)
Delaware County, Pennsylvania, Tax and
Rev. Anticipation Notes, Fac. Rev.,
Series 1985; Guaranteed by United
Parcel Service; 5.15%; 5/1/95*; 12/1/15 300,000 300,000
Total Short-Term Tax-Exempt Bonds 500,000
Other (0.23%)
Municipal Fund for Temporary Investment -
Munifund 400,000 400,000
Total Portfolio Investments (98.11%) 172,878,638
Cash, receivables and other assets, net of
liabilities (1.89%) 3,331,387
Total Net Assets (100.00%) $176,210,025
(a) Restricted security - See Note 4 to the financial statements.
* Demand Date
PRINCOR TAX-EXEMPT CASH MANAGEMENT FUND, INC.
Short-Term Tax-Exempt Bonds (99.10%)
Alabama (6.69%)
City of Mobile, Alabama, IDB, Solid Waste
Rev. Bonds, Scott Paper Co.; LOC
Morgan Guaranty;
Series 1984A;4.65%;5/3/95*;12/1/19 $1,600,000 $ 1,600,000
Series 1984B;4.65%;5/3/95*;12/1/19 600,000 600,000
Series 1984C;4.65%;5/3/95*;12/1/19 1,500,000 1,500,000
City of Mobile, Alabama, IDB, Solid Waste
Rev. Bonds, Scott Paper Co., Series
1984E; LOC Swiss Bank Corp.;
4.65%; 5/3/95*; 12/1/19 1,000,000 1,000,000
City of Stevenson, Alabama, IDB,
Improvement Rev. Bonds, The
Mead Corp., Series 1986;
LOC Credit Suisse;
5.15%; 5/1/95*; 11/1/16 1,700,000 1,700,000
6,400,000
Alaska (3.88%)
Alaska Industrial Dev. & Export Authority,
IDB Current Ref. Bonds, Series
1988A; LOC Security Pacific
Bank Washington;
Lot #2; 5.05%; 5/3/95*; 7/1/97 120,000 120,000
Lot #3; 5.05%; 5/3/95*; 7/1/97 620,000 620,000
Lot #5; 5.05%; 5/3/95*; 7/1/98 1,535,000 1,535,000
Lot #6; 5.05%; 5/3/95*; 7/1/01 310,000 310,000
Lot #9; 5.05%; 5/3/95*; 7/1/05 260,000 260,000
Lot #12; 5.05%; 5/3/95*; 7/1/12 870,000 870,000
3,715,000
Arizona (1.36%)
Chandler County, Arizona, IDA, F/R
Monthly IDR, Parsons Municipal
Services, Series 1983; LOC
National Westminster;
4.15%; 5/15/95*; 12/15/09 1,300,000 1,300,000
California (3.66%)
County of Los Angeles, California, 1994-95
Tax & Rev. Anticipation Notes;
4.50%; 6/30/95 3,500,000 3,502,497
Colorado (4.71%)
Adams County, Colorado, IDR Bonds,
City View Park Project, Series 1985;
LOC Barclays Bank;
4.80%; 5/3/95*; 12/1/15 300,000 300,000
Arapahoe County, Colorado, Capital Trust
Fund Highway Rev. Bonds, E470 Project,
Series 1986C; Secured by Federal
National Mortgage Association;
4.40%; 8/31/95**; 8/31/26 3,500,000 3,500,000
Arapahoe County, Colorado, F/R Monthly
IDR, Beckett Aviation, Inc., Series
1983; LOC Barclays Bank;
4.09%; 5/15/95*; 5/15/13 $ 600,000 $ 600,000
City of Thornton, Colorado, F/R Monthly
IDR, Service Merchandise Co., Inc.,
Series 1984; LOC Industrial Bank of
Japan; 4.10%; 5/15/95*; 12/15/99 100,000 100,000
4,500,000
Florida (4.39%)
Florida Housing Finance Agency, F/R
Monthly MF Rev's., Water Apt. Project,
Series 1984A; LOC Wells Fargo;
4.10%; 5/1/95*; 4/1/07 1,700,000 1,700,000
Florida Housing Finance Agency, F/R
Monthly MF Rev's., Webb Road 1 Apt.
Project, Series 1984; LOC Wells
Fargo; 4.10%; 5/1/95*; 4/1/07 900,000 900,000
Florida Housing Finance Agency, F/R
Monthly MF Rev's., Webb Road 2 Apt.
Project; Series 1984C; LOC Wells
Fargo; 4.10%; 5/1/95*; 4/1/07 1,600,000 1,600,000
4,200,000
Georgia (7.79%)
Burke County, Georgia, Dev. Authority, Adj.
Tender Pollution Control Rev. Bonds,
Oglethorpe Power Corp., Vogtle Project,
Series 1992A; LOC Credit Suisse;
4.15%; 5/1/95**; 1/1/25 300,000 300,000
4.20%; 5/4/95**; 1/1/25 500,000 500,000
4.20%; 5/19/95**; 1/1/25 500,000 500,000
4.15%; 5/22/95**; 1/1/25 500,000 500,000
3.85%; 6/1/95**; 1/1/25 500,000 500,000
4.00%; 6/2/95**; 1/1/25 300,000 300,000
4.05%; 6/2/95**; 1/1/25 450,000 450,000
3.95%; 6/7/95**; 1/1/25 700,000 700,000
4.10%; 7/6/95**; 1/1/25 500,000 500,000
Fulton County, Georgia, Housing Authority,
Municipal Housing Rev. Bonds, Series
1986A; LOC Sumitomo Bank Ltd.;
4.95%; 5/3/95*; 8/1/16 1,800,000 1,800,000
Hapeville, Georgia, Dev. Authority, Adj.
Tender IDR Bonds, Hapeville Hotel Ltd.
Partnership Project, Series 1985;
LOC Swiss Bank Corp.;
5.10%; 5/1/95*; 11/1/15 1,400,000 1,400,000
7,450,000
Idaho (1.05%)
State of Idaho Tax Anticipation Notes,
Series 1994; 4.50%; 6/29/95 1,000,000 1,001,059
Illinois (6.03%)
Chicago, Illinois, Cook County CSX Beckett
Aviation, Inc., F/R Monthly Airport
Rev. Bonds; LOC Barclays Bank;
4.09%; 5/15/95*; 12/15/14 1,000,000 1,000,000
City of Burbank, Illinois, F/R Monthly IDR,
Service Merchandise Co., Inc., Series
1984; LOC Pittsburgh National Bank;
4.10%; 5/15/95*; 9/15/24 2,100,000 2,100,000
City of Chicago General Obligation
Tender Notes, Series 1995A;
LOC Morgan Guaranty;
4.60%; 10/31/95 $1,270,000 $ 1,270,000
City of Naperville, Illinois, Economic Dev.
Rev. Bonds, Service Merchandise Co.,
Inc.; LOC Pittsburgh National Bank;
4.10%; 5/15/95*; 11/30/24 1,400,000 1,400,000
5,770,000
Indiana (1.05%)
Marion County, Metro. School District
of Washington Township, First
Series 1995; 4.73%; 6/30/95 1,000,000 1,000,368
Louisiana (9.06%)
Jefferson Parish, Louisiana, Hospital Rev.
Bonds, Jefferson Parish Hospital Service,
District #2, Customized Purchase
Program, Series 1985; LOC Mitsubishi
Bank; 4.75%; 5/3/95*; 12/1/15 3,100,000 3,100,000
Jefferson Parish, Louisiana, IDB Rev.
Ref. Bonds, George J. Achel, Sr.
Project, Series 1986; LOC Barclays
Bank; 4.80%; 5/3/95*; 12/1/04 1,200,000 1,200,000
Louisiana Public Fac. Authority, CP
Program Hospital Equip. Rev.
Bonds, Series 1985A, Pooled Project;
LOC Sumitomo Bank;
4.95%; 5/3/95*; 12/1/15 4,365,000 4,365,000
8,665,000
Maine (2.62%)
State of Maine General Obligation Tax
Anticipation Notes;
4.50%; 6/30/95 2,500,000 2,502,847
Maryland (0.94%)
Montgomery County, Maryland, F/R
Monthly IDA, Information Systems &
Networks; LOC Pittsburgh National
Bank; 4.00%; 5/1/95*; 4/1/14 900,000 900,000
Massachusetts (0.10%)
Commonwealth of Massachusetts,
Dedicated Income Tax Bonds, Series B;
LOC National Westminster;
5.15%; 5/1/95*; 12/1/97 100,000 100,000
Michigan (0.78%)
Township of Cornell, Michigan, The
Economic Dev. Corp.,
Environmental Improvement Rev.
Ref. Bonds, Series 1986, Mead
Escanaba Paper Co. Project; LOC Suisse
Bank; 5.15%; 5/1/95*; 11/1/16 750,000 750,000
Minnesota (7.01%)
City of Rochester, Minnesota, Health Care
Fac. Rev. Bonds, Mayo Foundation/Mayo
Medical Center, Adj. Tender;
Series 1992A; 3.85%; 6/6/95**; 11/15/18 500,000 500,000
Series 1992C; 4.15%; 5/12/95**; 11/15/21 500,000 500,000
Series 1992C; 3.90%; 5/9/95**; 11/15/21 $ 500,000 $ 500,000
Series 1992C; 4.25%; 6/1/95**; 11/15/21 700,000 700,000
Series 1992C; 3.95%; 6/8/95**; 11/15/21 500,000 500,000
University of Minnesota Regents Variable
Rate Demand Bonds;
Series 1985F; 4.50%; 8/1/95**; 10/1/01 2,500,000 2,500,000
Series 1985G; 4.50%; 8/1/95**; 10/1/07 1,500,000 1,500,000
6,700,000
Missouri (3.87%)
Callaway County, Missouri, IDA, F/R
Monthly Rev's, Series 1984, Callaway
Community Hospital; LOC
National Westminster;
4.05%; 5/1/95*; 8/1/14 3,700,000 3,700,000
Montana (5.12%)
City of Forsyth, Montana, Portland General
Electric Co.; LOC Swiss Bank Corp.;
Series 1984; 4.65%; 5/3/95*; 8/1/14 1,000,000 1,000,000
Series B; 4.45%; 5/3/95*; 6/1/13 2,400,000 2,400,000
Series D; 4.65%; 5/3/95*; 6/1/13 1,500,000 1,500,000
4,900,000
Nebraska (2.93%)
Nebraska Investment Finance Authority, F/R
Monthly MF Rev's., Series 1985A, Apple
Creek Associates; LOC Citibank;
4.40%; 5/1/95*; 9/1/07 2,800,000 2,800,000
New Hampshire (1.88%)
New Hampshire IDA, F/R Monthly 1983
Hudson, Oerlikon-Buhrle USA/Balzers;
LOC Union Bank of Switzerland;
4.00%; 5/1/95*; 7/1/13 1,800,000 1,800,000
New York (4.18%)
New York State Energy Research & Dev.
Authority Pollution Control Rev. Bonds,
Long Island Lighting Co.; Series 1985B;
LOC Deutsche Bank;
4.70%; 3/1/96**; 3/1/16 4,000,000 4,000,000
North Carolina (1.88%)
North Carolina Eastern Municipal Power
Agency, Series 1988B; LOC Morgan
Guaranty Trust Co.; LOC Union
Bank of Switzerland;
4.00%; 5/2/95**; 1/1/26 500,000 500,000
4.15%; 5/3/95**; 1/1/26 500,000 500,000
4.25%; 5/15/95**; 1/1/26 300,000 300,000
4.10%; 6/5/95**; 1/1/26 500,000 500,000
1,800,000
Ohio (1.05%)
Village of Evendale, Ohio, SHV Real Estate
Income Project; LOC Citibank;
4.35%; 5/3/95*; 9/1/15 1,000,000 1,000,000
Pennsylvania (1.99%)
Bucks County, Pennsylvania, IDA SHV
Real Estate, Inc. Project, Series 1985;
LOC ABN-AMRO Bank;
4.35%; 5/3/95*; 7/1/15 700,000 700,000
Chester, Pennsylvania, IDA, F/R
Monthly IDR, Keystone Foods
Corp.; LOC Barclays Bank;
4.10%; 5/15/95*; 10/15/99 $ 800,000 $ 800,000
Delaware County, Pennsylvania, Tax & Rev.
Anticipation Notes, Fac. Rev.,
Series 1985; Guaranteed by
United Parcel Service;
5.15%; 5/1/95*; 12/1/15 400,000 400,000
1,900,000
Tennessee (0.52%)
Knox, Tennessee, IDB F/R Monthly
IDR 1983, Service Merchandise Co.,
Inc.; LOC Barclays Bank;
4.10%; 5/15/95*; 12/15/08 500,000 500,000
Texas (7.51%)
Austin, Texas, Higher Education
Authority, Inc. F/R Monthly Education
Fac. Rev's., St. Edward's University;
LOC Mitsubishi Bank;
4.40%; 5/1/95*; 8/1/10 500,000 500,000
Calhoun County, Texas, NAV IDA PCA,
Alcoa, Series 1987; LOC Credit Suisse;
4.30%; 5/2/95*; 3/1/01 300,000 300,000
Cedar Hill, Texas, Industrial Dev. Corp.
F/R Monthly IDR 1985, Minyard
Properties Project; LOC Citibank;
4.35%; 5/1/95*; 5/1/02 500,000 500,000
Coppell, Texas, Industrial Dev.
Corp., IDA 1984, Minyard
Properties Project; LOC Citibank;
4.35%; 5/1/95*; 12/1/01 1,270,000 1,270,000
Port Arthur Navigation Dist. Industrial
Dev. Corp. Adj. Tender Pollution
Control Rev. Bonds, American
Petrofina Co. of Texas Project, Series
1985; LOC Sumitomo Bank;
5.20%; 5/1/95*; 5/1/03 1,600,000 1,600,000
Port Dev. Corp., Adj. Tender Marine
Terminal Rev. Ref. Bonds, Mitsui &
Co. (USA), Inc. Project, Series 1985A;
LOC Industrial Bank of Japan;
3.90%; 5/1/95**; 12/1/05 500,000 500,000
3.90%; 5/5/95**; 12/1/05 500,000 500,000
4.10%; 6/9/95**; 12/1/05 500,000 500,000
State of Texas, Tax & Rev.
Anticipation Notes, Series 1994;
5.00%; 8/31/95 1,500,000 1,503,123
7,173,123
Washington (2.55%)
Chelan County, Washington Dev. Corp.,
PCA, Alcoa, Series 1987;
LOC Credit Suisse;
4.30%; 5/2/95*; 3/1/01 200,000 200,000
Port of Kalama, Washington, Public Corp.,
Port Fac. Rev. Bonds, Conagra, Inc.
Project; LOC Morgan Guaranty;
4.65%; 5/3/95*; 1/1/04 2,240,000 2,240,000
2,440,000
West Virginia (1.88%)
Putnam County, West Virginia, F/R
Monthly IDR 1981, FMC Corp.
Project; LOC Bankers Trust;
4.00%; 5/1/95*; 10/1/11 1,800,000 1,800,000
Wisconsin (1.05%)
State of Wisconsin 1994 Operating
Notes; 4.50%; 6/15/95 1,000,000 1,000,635
Wyoming (1.57%)
Lincoln County, Wyoming, Pollution
Control Ref. Bonds, Pacificorp
Project, Series 1991; LOC
Union Bank of Switzerland;
3.80%; 5/2/95**; 1/1/16 500,000 500,000
4.10%; 5/8/95**; 1/1/16 500,000 500,000
4.25%; 6/5/95**; 1/1/16 500,000 500,000
1,500,000
Total Portfolio Investments (99.10%) 94,770,529
Cash, receivables and other assets, net of
liabilities (0.90%) 856,908
Total Net Assets (100.00%) $95,627,437
* Demand Date
** Put Date
PRINCOR UTILITIES FUND, INC.
Shares
Held Value
Common Stocks (95.49%)
Combination Utility Services (18.87%)
Cilcorp, Inc. 42,900 $ 1,560,488
Cinergy Corp. 95,699 2,404,437
Delmarva Power & Light Co. 30,300 590,850
LG&E Energy Corp. 30,000 1,158,750
Niagara Mohawk Power Corp. 38,000 527,250
Pacificorp 96,000 1,824,000
WPS Resources Corp. 63,000 1,819,125
Washington Water Power Co. 110,000 1,691,250
11,576,150
Electric Services (40.11%)
Allegheny Power System, Inc. 80,000 1,880,000
American Electric Power Co., Inc. 56,000 1,834,000
Dominion Resources, Inc. 49,400 1,803,100
Duke Power Co. 45,400 1,793,300
FPL Group, Inc. 50,000 1,837,500
Idaho Power Co. 59,800 1,450,150
KU Energy Corp. 65,800 1,793,050
Midwest Resources, Inc. 125,000 1,781,250
Minnesota Power & Light Co. 46,000 $ 1,201,750
New England Electric System 44,000 1,325,500
Pennsylvania Power & Light Co. 67,500 1,240,312
Portland General Corp. 88,000 1,826,000
Southern Co. 89,000 1,835,625
Teco Energy, Inc. 87,000 1,848,750
Texas Utilities Co. 35,200 1,148,400
24,598,687
Gas Production & Distribution (9.53%)
Atlanta Gas Light Co. 27,200 992,800
British Gas PLC 26,600 1,296,750
Laclede Gas Co. 20,600 388,825
New Jersey Resources Corp. 43,700 983,250
Peoples Energy Corp. 53,000 1,338,250
Washington Energy Co. 56,800 844,900
5,844,775
Telephone Communication (26.98%)
AT&T Corp. 46,100 2,339,575
Ameritech Corp. 49,500 2,227,500
Bell Atlantic Corp. 39,000 2,140,125
Bellsouth Corp. 34,500 2,113,125
GTE Corp. 62,000 2,115,750
Nynex Corp. 47,500 1,941,563
Sprint Corp. 51,000 1,683,000
US West, Inc. 48,000 1,986,000
16,546,638
Total Common Stocks 58,566,250
Commercial Paper (4.51%)
Principal
Amount Value
Motor Vehicles & Equipment (4.51%)
Ford Motor Credit Co.;
5.91%; 5/1/95 $1,255,000 $ 1,255,000
5.93%; 5/4/95 1,510,000 1,509,254
Total Commercial Paper 2,764,254
Total Portfolio Investments (100.00%) 61,330,504
Cash, receivables and other assets, net of
liabilities (0.00%) 271
Total Net Assets (100.00%) $61,330,775
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected data for a share of Capital Stock outstanding throughout each period:
Income from Investment Operations Less Distributions
Net Realized
and
Net Asset Net Unrealized Total Dividends Net Asset
Value at Invest- Gain from from Net Distributions Value at
Beginning ment (Loss) on Investment Investment from Total End
of Period Income Investments Operations Income Capital Gains Distributions of Period
PRINCOR BOND FUND, INC.
Class A
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended April 30, 1995 $10.27 $.39(d) $ .46 $ .85 $(.39) $(.01) $(.40) $10.72
Year Ended October 31,
1994 11.75 .78(d) (1.47) (.69) (.78) (.01) (.79) 10.27
1993 10.97 .81(d) .79 1.60 (.81) (.01) (.82) 11.75
1992 10.65 .85(d) .32 1.17 (.85) - (.85) 10.97
1991 9.99 .88(d) .65 1.53 (.87) - (.87) 10.65
1990 10.57 .86 (.55) .31 (.89) - (.89) 9.99
Class B:
Period Ended April 30, 1995(e) 10.19 .27(d) .48 .75 (.24) - (.24) 10.70
PRINCOR CASH MANAGEMENT FUND, INC.
Class A:
Six Months Ended April 30, 1995 1.000 .026(d) - .026 (.026) - (.026) 1.000
Year Ended October 31,
1994 1.000 .033(d) - .033 (.033) - (.033) 1.000
1993 1.000 .026(d) - .026 (.026) - (.026) 1.000
1992 1.000 .036(d) - .036 (.036) - (.036) 1.000
1991 1.000 .061(d) - .061 (.061) - (.061) 1.000
1990 1.000 .074(d) - .074 (.074) - (.074) 1.000
Class B:
Period Ended April 30, 1995(e) 1.000 .018(d) - .018 (.018) - (.018) 1.000
PRINCOR GOVERNMENT SECURITIES INCOME FUND, INC.
Class A:
Six Months Ended April 30, 1995 10.28 .35 .54 .89 (.35) - (.35) 10.82
Year Ended October 31,
1994 11.79 .69 (1.40) (.71) (.68) (.12) (.80) 10.28
1993 11.44 .74 .55 1.29 (.74) (.20) (.94) 11.79
1992 11.36 .81 .12 .93 (.81) (.04) (.85) 11.44
1991 10.54 .85 .84 1.69 (.87) - (.87) 11.36
1990 10.76 .85 (.22) .63 (.85) - (.85) 10.54
Class B:
Period Ended April 30, 1995(e) 10.20 .23 .60 .83 (.22) - (.22) 10.81
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected data for a share of Capital Stock outstanding throughout each period:
Ratios/Supplemental Data
Ratio of Net
Ratio of Investment
Net Assets at Expenses to Income to Portfolio
Total End of Period Average Average Turnover
Return(b)(in thousands) Net Assets Net Assets Rate
PRINCOR BOND FUND, INC.
Class A
<S> <C> <C> <C> <C> <C>
Six Months Ended April 30, 1995 8.52%(c) $ 95,764 .95%(a)(d) 7.65%(a) 7.9%(a)
Year Ended October 31,
1994 (6.01)% 88,801 .95%(d) 7.27% 8.9%
1993 15.22% 85,015 .92%(d) 7.19% 9.3%
1992 11.45% 62,534 .88%(d) 7.95% 8.4%
1991 16.04% 37,825 .80%(d) 8.66% 0.9%
1990 3.08% 22,719 1.22% 8.40% 3.6%
Class B:
Period Ended April 30, 1995(e) 3.18%(c) 878 1.66%(a)(d) 6.82%(a) 7.9%(a)
PRINCOR CASH MANAGEMENT FUND, INC.
Class A:
Six Months Ended April 30, 1995 2.61%(c) 508,139 .71%(a)(d) 5.25%(a) N/A
Year Ended October 31,
1994 3.40% 332,346 .70%(d) 3.27% N/A
1993 2.67% 284,739 .67%(d) 2.63% N/A
1992 3.71% 247,189 .65%(d) 3.66% N/A
1991 6.29% 262,543 .61%(d) 5.95% N/A
1990 7.65% 151,007 .93%(d) 7.36% N/A
Class B:
Period Ended April 30, 1995(e) 1.82%(c) 26 1.37%(a)(d) 4.84%(a) N/A
PRINCOR GOVERNMENT SECURITIES INCOME FUND, INC.
Class A:
Six Months Ended April 30, 1995 8.86%(c) 250,785 .97%(a) 6.78%(a) 5.0%(a)
Year Ended October 31,
1994 (6.26)% 249,438 .95% 6.35% 24.8%
1993 11.80% 236,718 .93% 6.38% 52.6%
1992 8.49% 161,565 .95% 7.04% 54.3%
1991 16.78% 94,613 .98% 7.80% 14.9%
1990 6.17% 71,806 1.07% 8.15% 22.4%
Class B:
Period Ended April 30, 1995(e) 4.02%(c) 1,619 1.72%(a) 5.92%(a) 5.0%(a)
See accompanying notes.
<FN>
Notes to Financial Highlights
(a) Computed on an annualized basis.
(b) Total return is calculated without the front-end sales charge or contingent
deferred sales charge.
(c) Total return amounts have not been annualized.
(d) Without the Manager's voluntary waiver of a portion of certain of its
expenses (see Note 3 to the financial statements) for the periods indicated,
the following funds would have had per share net investment income and the
ratios of expenses to average net assets as shown:
Year, Per Share Ratio of Expenses
Except Net Invest- to Average Net Amount
Fund as Noted ment Income Assets Waived
Princor Bond Fund, Inc.
Class A 1995* $.38 1.10% $ 69,975
1994 .77 1.09% 120,999
1993 .79 1.07% 111,162
1992 .82 1.11% 110,868
1991 .84 1.15% 100,396
Class B 1995(e) .26 1.81% 210
Princor Cash Management
Fund, Inc.
Class A 1995* .026 .78% 145,377
1994 .031 .90% 595,343
1993 .025 .84% 468,387
1992 .035 .80% 385,328
1991 .059 .79% 433,196
1990 .073 1.01% 106,841
Class B 1995(e) .016 2.12% 53
*Period from 10/31/94 through 4/30/95.
(e) Period from December 9, 1994, date Class B shares first offered to the
public, through April 30, 1995. Certain of the Income Funds Class B shares
recognized net investment income as follows, for the period from the initial
purchase of Class B shares on December 5, 1994 through December 8, 1994,
none of which was distributed to the sole shareholder, Princor Management
Corporation. Additionally, the Income Funds Class B shares incurred
unrealized loss during the initial interim period as follows. This
represented Class B share activities of each fund prior to the initial
public offering of Class B shares:
Per Share Per Share
Net Investment Unrealized
Fund Income (Loss)
Princor Bond Fund, Inc. .01 -
Princor Government Securities
Income Fund, Inc. .01 (.02)
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected data for a share of Capital Stock outstanding throughout each period:
Income from Investment Operations Less Distributions
Net Realized
and
Net Asset Net Unrealized Total Dividends Net Asset
Value at Invest- Gain from from Net Distributions Value at
Beginning ment (Loss) on Investment Investment from Total End
of Period Income Investments Operations Income Capital Gains Distributions of Period
PRINCOR HIGH YIELD FUND, INC.
Class A:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended April 30, 1995 $ 7.83 $ 34 $ .13 $ .47 $ (.32) $ - $ (.32) $ 7.98
Year Ended October 31,
1994 8.36 .63 (.51) .12 (.65) - (.65) 7.83
1993 8.15 .71 .21 .92 (.71) - (.71) 8.36
1992 7.86 .79 .29 1.08 (.79) - (.79) 8.15
1991 7.12 .88 .80 1.68 (.94) - (.94) 7.86
1990 9.47 1.10 (2.35) (1.25) (1.09) (.01) (1.10) 7.12
Class B:
Period Ended April 30, 1995(f) 7.64 .22 .30 .52 (.19) - (.19) 7.97
PRINCOR TAX-EXEMPT BOND FUND, INC.
Class A:
Six Months Ended April 30, 1995 10.93 .32 .56 .88 (.33) - (.33) 11.48
Year Ended October 31,
1994 12.62 .64 (1.54) (.90) (.63) (.16) (.79) 10.93
1993 11.62 .66 1.11 1.77 (.66) (.11) (.77) 12.62
1992 11.47 .68 .19 .87 (.69) (.03) (.72) 11.62
1991 10.82 .69 .68 1.37 (.70) (.02) (.72) 11.47
1990 11.06 .68 (.25) .43 (.67) - (.67) 10.82
Class B:
Period Ended April 30, 1995(f) 10.56 .21 .90 1.11 (.20) - (.20) 11.47
PRINCOR TAX-EXEMPT CASH MANAGEMENT FUND, INC.
Class A:
Six Months Ended April 30, 1995 1.000 .016(d) - .016 (.016) - (.016) 1.000
Year Ended October 31,
1994 1.000 .021(d) - .021 (.021) - (.021) 1.000
1993 1.000 .020(d) - .020 (.020) - (.020) 1.000
1992 1.000 .028(d) - .028 (.028) - (.028) 1.000
1991 1.000 .043(d) - .043 (.043) - (.043) 1.000
1990 1.000 .053(d) - .053 (.053) - (.053) 1.000
Class B:
Period Ended April 30, 1995(f) 1.000 .009(d) - .009 (.009) - (.009) 1.000
PRINCOR UTILITIES FUND, INC.
Class A:
Six Months Ended April 30, 1995 9.25 .25(d) .41 .66 (.25) - (.25) 9.66
Year Ended October 31, 1994 11.45 .46(d) (2.19) (1.73) (.45) (.02) (.47) 9.25
Period Ended October 31, 1993(e) 10.18 .35(d) 1.27 1.62 (.35) - (.35) 11.45
Class B:
Period Ended April 30, 1995(f) 9.20 .21(d) .48 .69 (.24) - (.24) 9.65
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected data for a share of Capital Stock outstanding throughout each period:
Ratios/Supplemental Data
Ratio of Net
Ratio of Investment
Net Assets at Expenses to Income to Portfolio
Total End of Period Average Average Turnover
Return(b)(in thousands) Net Assets Net Assets Rate
PRINCOR HIGH YIELD FUND, INC.
Class A:
<S> <C> <C> <C> <C> <C>
Six Months Ended April 30, 1995 6.17%(c) $ 21,424 1.54%(a) 8.84%(a) 58.4%(a)
Year Ended October 31,
1994 1.45% 19,802 1.46% 7.82% 27.2%
1993 11.66% 19,154 1.35% 8.57% 23.4%
1992 14.35% 16,359 1.41% 9.69% 28.2%
1991 25.63% 13,195 1.50% 12.06% 14.2%
1990 (14.51)% 9,978 1.45% 12.99% 15.8%
Class B:
Period Ended April 30, 1995(f) 2.97%(c) 133 2.40%(a) 8.34%(a) 52.4%(a)
PRINCOR TAX-EXEMPT BOND FUND, INC.
Class A:
Six Months Ended April 30, 1995 8.21%(c) 174,714 .93%(a) 5.85%(a) 20.0%(a)
Year Ended October 31,
1994 (7.41)% 171,425 .91% 5.49% 20.6%
1993 15.70% 177,480 .89% 5.45% 20.3%
1992 7.76% 106,661 .99% 5.96% 22.9%
1991 13.09% 62,755 1.01% 6.24% 13.1%
1990 4.06% 46,846 1.11% 6.31% 2.6%
Class B:
Period Ended April 30, 1995(f) 6.48%(c) 1,496 1.67%(a) 4.92%(a) 20.0%(a)
PRINCOR TAX-EXEMPT CASH MANAGEMENT FUND, INC.
Class A:
Six Months Ended April 30, 1995 1.58%(c) 95,601 .68%(a)(d) 3.18%(a) N/A
Year Ended October 31,
1994 2.11% 79,736 .67%(d) 2.08% N/A
1993 1.99% 79,223 .66%(d) 1.96% N/A
1992 2.86% 69,224 .65%(d) 2.84% N/A
1991 4.36% 71,469 .61%(d) 4.27% N/A
1990 5.40% 58,301 .71%(d) 5.26% N/A
Class B:
Period Ended April 30, 1995(f) .93%(c) 26 1.51%(a)(d) 2.52%(a) N/A
PRINCOR UTILITIES FUND, INC.
Class A:
Six Months Ended April 30, 1995 7.30%(c) 59,905 1.03%(a)(d) 5.31%(a) 7.9%(a)
Year Ended October 31, 1994 (15.20)% 56,747 1.00%(d) 4.89% 13.8%
Period Ended October 31, 1993(e) 15.92%(c) 50,372 1.00%(a)(d) 4.48%(a) 4.3%(a)
Class B:
Period Ended April 30, 1995(f) 3.47%(c) 1,426 1.78%(a)(d) 4.00%(a) 7.9%(a)
See accompanying notes.
<FN>
Notes to Financial Highlights
(a) Computed on an annualized basis.
(b) Total return is calculated without the front-end sales charge or contingent
deferred sales charge.
(c) Total return amounts have not been annualized.
(d) Without the Manager's voluntary waiver of a portion of certain of its
expenses (see Note 3 to the financial statements) for the periods indicated,
the following funds would have had per share net investment income and the
ratios of expenses to average net assets as shown:
Year, Per Share Ratio of Expenses
Except Net Invest- to Average Net Amount
Fund as Noted ment Income Assets Waived
Princor Tax-Exempt Cash
Management Fund, Inc.
Class A 1995* $.015 .87% $ 86,760
1994 .019 .85% 150,515
1993 .018 .83% 131,442
1992 .026 .82% 134,497
1991 .040 .83% 147,279
1990 .050 .96% 123,656
Class B 1995(f) .007 2.30% 56
Princor Utilities Fund, Inc.
Class A 1995* .23 1.44% 118,002
1994 .41 1.50% 284,836
1993(e) .32 1.54% 139,439
Class B 1995(f) .20 2.14% 774
*Period from 10/31/94 through 4/30/95.
(e) Period from December 16, 1992, date shares first offered to public, through
October 31, 1993. Net investment income, aggregating $.05 per share for the
period from the initial purchase of shares on November 16, 1992 through
December 15, 1992, was recognized, none of which was distributed to its sole
stockholder, Principal Mutual Life Insurance Company, during the period.
Additionally, the fund incurred unrealized gains on investments of $.13 per
share during the initial interim period. This represented activities of the
fund prior to the initial public offering of fund shares.
(f) Period from December 9, 1994, date Class B shares first offered to the
public, through April 30, 1995. Certain of the Income Funds Class B shares
recognized net investment income as follows, for the period from the initial
purchase of Class B shares on December 5, 1994 through December 8, 1994,
none of which was distributed to the sole shareholder, Princor Management
Corporation. Additionally, the Income Funds Class B shares incurred
unrealized loss during the initial interim period as follows. This
represented Class B share activities of each fund prior to the initial
public offering of Class B shares:
Per Share Per Share
Net Investment Unrealized
Fund Income (Loss)
Princor High Yield Fund, Inc. .01 (.03)
Princor Tax-Exempt
Bond Fund, Inc. - (.05)
Princor Utilities Fund, Inc. .01 (.01)
</FN>
</TABLE>
Special Offer of Class A Shares of Princor Funds
During the period ending August 31, 1995, a reduced sales charge as
designated in the table below is available for purchases of Class A shares of
any of the Funds to the extent that the investment represents the proceeds from
a total surrender of the Pension Builder Annuity Contract, an unregistered fixed
annuity contract issued by Principal Mutual Life Insurance Company.
<TABLE>
<CAPTION>
Sales Charge as % of:
Net
Offering Amount Dealer Allowance as %
Amount of Purchase Price Invested of Offering Price
<S> <C> <C> <C> <C>
Less than $500,000 2.50% 2.56% 2.10%
$500,000 but less than $1,000,000 1.50% 1.52% 1.25%
$1,000,000 or more No Sales Charge 0 Negotiated
</TABLE>
Also during the period ending June 30, 1995, investors may purchase Class A
shares of the Funds at net asset value to the extent that this investment
represents the proceeds of a redemption, within the preceding 60 days, of shares
(the purchase price of which shares included a front-end sales charge on the
redemption of which was subject to a contingent deferred sales charge) of
another investment company if those shares were purchased through Hamilton
Investments from offices of Household Bank Services Group. When making a
purchase at net asset value pursuant to this provision, the investor must
forward to Princor either (i) the redemption check representing the proceeds of
the shares redeemed, endorsed to the order of Princor Financial Services
Corporation, or (ii) a copy of the confirmation from the other investment
company showing the redemption transactions. In the case of a wire purchase
pursuant to this provision, a copy of the confirmation from the other investment
company showing the redemption must be forwarded to and received by Princor
within 21 days following the date of purchase. If the confirmation is not
provided within the 21-day period, a sufficient number of shares will be
redeemed from the shareholders account to pay the otherwise applicable sale
charge.
<PAGE>
THE PRINCOR FAMILY OF MUTUAL FUNDS
Principal Mutual Life Insurance Company has sponsored the development of a
number of mutual funds. The funds which make up the Princor family of mutual
funds and a brief description of their respective investment objectives are
provided below. For more complete information about any of the funds, including
charges and expenses, obtain a prospectus from Princor Financial Services
Corporation, The Principal Financial Group, Des Moines, Iowa 50392-0200
(telephone 1-800-247-4123). Please read it carefully before you invest or send
money.
GROWTH FUNDS INVESTMENT OBJECTIVE
Princor Balanced Fund To seek the generation of a total return
consisting of current income and capital
appreciation while assuming reasonable risks in
furtherance of this objective.
Princor Blue Chip Fund To seek growth of capital and growth of income
by investing primarily in common stocks
of well capitalized, established companies.
Princor Capital To seek long-term capital appreciation and a
Accumulation Fund secondary objective of growth of investment
income.
Princor Emerging To seek capital appreciation by investing
Growth Fund primarily in securities of emerging and other
growth oriented companies.
Princor Growth Fund To seek growth of capital with realization of current
income incidental to the objective of growth of capital.
Princor World Fund To seek long-term growth of capital by investing in a
portfolio of equity securities of companies domiciled in any of the nations of
the world.
INCOME FUNDS
Princor Bond Fund To seek as high a level of income as is consistent with
preservation of capital and prudent investment risk.
Princor Cash Management Fund To seek as high a level of current income
available from short-term securities as is considered consistent with
preservation of principal and maintenance of liquidity by investing in a
portfolio of money market instruments.
Princor Government Securities Income Fund To seek a high level of current
income, liquidity and safety of principal.
Princor High Yield Fund To seek high current income. Capital growth is a
secondary objective when consistent with seeking high current income.
Princor Tax-Exempt Bond Fund To seek as high a level of current income
exempt from federal taxation as is consistent with preservation of capital.
Princor Tax-Exempt Cash Management Fund To seek, through investment in a
professionally-managed portfolio of high quality short- term Municipal
Obligations, as high a level of current interest income exempt from federal
incometax as is consistent with stability of principal and mainte nance of
liquidity.
Princor Utilities Fund To seek current income and long-term growth of
income and capital by investing primarily in equity and fixed income securities
of companies in the public utilities industry.
