Financial statements
PAGE
Retirement
Annuity Mutual
Funds
1995 semiannual report
Offers six funds with separate goals and objectives to provide
investment flexibility with no initial sales charge
Managed by
IDS Life Insurance Company
PAGE
The Retirement Annuity Mutual Funds provide several alternatives
to consider for investment through your annuity contracts.
Contents
From the president 3
Capital Resource Fund
From the portfolio manager 4
Ten largest holdings 5
International Equity Fund
From the portfolio manager 6
Ten largest holdings 7
Aggressive Growth Fund
From the portfolio manager 8
Ten largest holdings 9
Special Income Fund
From the portfolio manager 10
Ten largest holdings 11
Moneyshare Fund
From the portfolio manager 12
Managed Fund
From the portfolio manager 13
Ten largest holdings 14
All Funds
Financial statements 15
Notes to financial statements 22
Investments in securities 35
PAGE
To our contract owners
picture of: William R. Pearce
President of the funds
From the president
The Retirement Annuity mutual funds, as part of the IDS MUTUAL
FUND GROUP, held shareholder meetings on Nov. 9, 1994. The
meetings, which were well-attended, approved all of the proposals
advanced by management. Among the proposals were:
* The election of directors and the selection of KPMG Peat
Marwick LLP as independent auditors for each of the funds in the
group.
* A new investment management agreement with IDS Life.
* A change with respect to a number of "fundamental investment
policies" that allows the board to modify them should it deem
appropriate.
* The name of IDS Life Capital Resource Fund, Inc., the
corporate entity, was changed to IDS Life Investment Series, Inc.
The names of the three portfolios underlying the corporation
remain
IDS Life Aggressive Growth Fund,
IDS Life Capital Resource Fund and
IDS Life International Equity Fund.
No other business was presented at the meeting, which was
concluded by a report to contract owners from American Express
Financial Corporation's investment department.
Lastly, I want to introduce two new portfolio managers for the
Retirement Annuity funds: Steve Merrell (Special Income Fund) and
Marty Hurwitz (Aggressive Growth Fund). Each assumed his
responsibility in January 1995. Please see their respective
letters, as well as those of the other fund managers, for a
review of the past period and an investment outlook.
William R. Pearce
PAGE
To our contract owners
Capital Resource Fund
picture of: Curt Weaver
Portfolio manager
From the portfolio manager
A highly selective investment approach paid off for Capital
Resource Fund during the first half of the fund's fiscal year
(September 1994 through February 1995). The result was a 3.02%
increase in net asset value for contract owners. This figure does
not reflect expenses that apply to the variable accounts or
subaccounts or to the annuity contract.
The considerable price fluctuation that growth stocks have
experienced for some time continued during the six-month period,
as the investment mood swayed with changes in the outlooks for
inflation, economic growth and corporate profits. Still, on an
overall basis, the environment showed some gradual improvement as
the period progressed. The bulk
of the fund's gain came in January and February, which were
strong months for the stock market as a whole.
As has been the case for the past couple of years, the key to our
recent success was owning stocks of fundamentally sound, growing
companies whose prices had fallen to attractive levels during
market downturns. Our holdings spanned a wide range of business
sectors, including pharmaceutical, health care services,
financial services, medical devices, technology and consumer
products. We maintained a mix of both large and small-company
stocks. This broadly diversified approach also provided some
cushion for the fund during periods when a particular stock group
lost ground.
It's likely that changes in the state of the economy and the
inflation trend will continue to have a seesaw effect on the
stock market in the remaining months of the fiscal year.
Still, stocks of companies whether domestic or foreign, that can
consistently produce above-average profits should ultimately be
rewarded. While the run-up in stock prices
last winter has made it more difficult to find bargains among
such companies, that remains our goal as we try to build on our
recent progress.
Curt Weaver
PAGE
<TABLE>
<CAPTION>
Your fund's ten largest holdings
Capital Resource Fund
(Pie chart)
The ten holdings listed here make up 19.15% of the fund's net
assets
Common stocks Percent Value
(of fund's net assets)(as of Feb. 28,
1995)
_________________________________________________________________
_________________
<S> <C> <C>
UNUM 2.37% $76,500,000
UNUM Corp. through various subsidiaries, offers a broad range of
disability, health, life insurance and group pension products.
State Street Boston 2.02 65,343,750
Investment processing services for financial institutions and
corporate and government clients.
Philip Morris 2.01 65,002,500
Philip Morris is the largest cigarette company and has become the
second largest packaged-food company in the world as a result of
the Kraft acquisition.
Wal-Mart Stores 1.99 64,125,000
Wal-Mart Stores, the world's largest retailer, operates a chain
of discount department stores under the names Wal-Mart, Sam's
Club and Bud's Warehouse Outlets located in 45 states and Puerto
Rico.
UST 1.94 62,475,000
Moist smokeless tobacco and wines.
Tele-Communications 'A' 1.90 61,425,000
Tele-Communications 'A' is the largest cable system operator with
over 10 million subscribers in the United States. Approximately
70% of its business is regulated.
Reader's Digest 1.83 59,110,000
Reader's Digest is a publisher and direct mail marketer of
magazines, books, recorded music and other products worldwide.
Union Pacific 1.72 55,385,000
A diversified transportation company composed of a western
railroad and a regional less-than-truckload hauler, Trucking
Overnite. The company also owns Union Pacific Resources, one of
the country's largest producers of oil and gas.
Travelers 1.69 54,425,000
Among the world's largest multi-line financial services
companies, focusing on insurance, managed health care and
investments.
Northern Trust 1.68 54,400,000
Investment processing services for financial institutions and
corporate and government clinics.
Excludes short-term securities.
</TABLE>
PAGE
To our contract owners
International Equity Fund
picture of: Paul Hopkins
Portfolio manager
From the portfolio manager
Substantial downturns in many foreign markets reversed the
positive momentum we enjoyed during the previous fiscal year. As
a result, and despite efforts to cushion the impact of market
declines, the net asset value fell 13.08% during the first half
of the current fiscal year (September 1994 through February
1995). This figure does not reflect expenses that apply to the
variable accounts or subaccounts or to the annuity contracts.
After performing well in 1993, many foreign markets experienced
difficulty last year. We managed to protect your fund from the
most severe impact of this environment by maintaining a broad
exposure to global markets.
At the outset of 1994, stocks in Southeast Asia fell back from
all-time highs. Although they recovered in the summer months, by
fall they were again losing ground. These declines were caused by
fears of rising U.S. interest rates. By year-end the same concern
had led to the devaluation of the Mexican peso. Both the Mexican
market and the currency continued to fall throughout the year and
into 1995. The fund's holdings in Japan proved beneficial during
1994 as that market held up relatively will during November and
December. However, even here in the first months of 1995 the
combined impact of the Kobe earthquake and a strong yen
eventually brought Japanese equities down.
At the time of this writing, we hold cash reserves of 10%.
Looking forward, we
expect a better investment environment thanks to more stable
interest rates. With stock prices having already fallen in many
markets, we will use any further declines to add to holdings. In
the United Kingdom, we are positive as corporate profits remain
strong. In Latin America and Southeast Asia, stock prices have
now fallen to quite low levels, and we have begun to add to
Mexico.
Paul Hopkins
PAGE
<TABLE>
<CAPTION>
Your fund's ten largest holdings
International Equity Fund
(Pie chart)
The ten holdings listed here make up 14.60% of the fund's net
assets
Percent Value
(of fund's net assets)(as of Feb. 28,
1995)
_________________________________________________________________
__________
<S> <C> <C>
Next (United Kingdom) 2.07% $24,341,459
A leading clothing retailer in the United Kingdom
Telefonica (Spain) 1.77 20,834,095
Spain's monopoly operator of basic telephone and telex services.
Siebe (United Kingdom) 1.59 18,697,500
A United Kingdom engineering company with significant U.S.
presence via Foxboro in control devices and process systems.
Societe Nationale Elf Aquitaine (France) 1.58 18,657,934
A leading French oil company.
Lyonnaise des Eaux Dumez (France) 1.34 15,761,039
A leading water utility that has diversified into communications
and construction.
Unilever NV (Netherlands) 1.32 15,551,277
A diverse, international organization, Unilever is a world leader
in brand-name consumer products -- mainly foods, detergents and
toiletries.
Westpac Banking (Australia) 1.31 15,451,020
One of four major banking organizations in Australia, Westpac
Banking is engaged in a broad range of banking and financial
services.
Tokio Marine & Fire (Japan) 1.23 14,442,498
Tokio Marine is the largest and one of the oldest non-life
insurance companies in Japan. The company is part of the
prestigious Mitsubishi industrial group.
Rank Organisation (United Kingdom) 1.22 14,310,450
A major leisure-time company with interests in film, television,
travel and lodging.
Elsevier (Netherlands) 1.17 13,714,400
The world's most profitable publisher, operating around the
globe.
Excludes short-term securities.
</TABLE>
PAGE
To our contract owners
Aggressive Growth Fund
picture of: Martin G. Hurwitz
Portfolio manager
From the portfolio manager
Volatility continued to dominate the stock market and the growth-
stock group in particular during the first half of Aggressive
Growth Fund's fiscal year (September 1994 through February 1995).
Nevertheless, we were able to take advantage of periodic upturns,
which ultimately enabled the fund to provide an increase in net
asset value of 3.00%. This figure does not reflect expenses that
apply to the variable accounts or subaccounts or to the annuity
contract.
The past six months essentially came down to a tug of war between
the positive forces of low inflation and generally good corporate
profits and the negative influence of higher interest rates. The
period got off to a positive start last fall, as we enjoyed gains
in September and October. That advance was soon erased, however,
by a sharp downturn in November. The roller-coaster pattern
continued with a rebound in December, a loss in January and a
large gain in February.
Although their performance was similarly inconsistent, our
holdings among stocks of technology and health care companies
were the best performers on an overall basis. They were
complemented by periodic contributions from financial services
stocks.
With the change in portfolio managers last January, some
modifications to the portfolio have begun to be implemented.
Although the emphasis will remain on stocks of small and mid-size
growth companies, stock-selection criteria will be somewhat
different. The top consideration is outstanding company
management, followed by strong earnings and revenue growth and a
good risk-reward ratio regarding stock prices.
As for near-term prospects, we expect more of what we've seen in
the market for some time - considerable fluctuation with a
moderately positive underlying bias. With effective stock
selection, we expect to build on our progress of the first six
months.
Martin G. Hurwitz
PAGE
<TABLE>
<CAPTION>
Your fund's ten largest holdings
Aggressive Growth Fund
(Pie chart)
The ten holdings listed here make up 16.53 % of the fund's net
assets
Percent Value
(of fund's net assets)(as of Feb. 28,
1995)
<S> <C> <C>
Parametric Technology
2.22% $22,567,500
A producer of software products for the automation of complex
engineering tasks that are essential to the development of
virtually all manufactured products.
Oracle Systems
2.05 20,790,000
One of the largest independent vendors of database-management
software offering a variety of new products, enhancements and
applications software.
HBO & Company
1.90 19,250,000
A health-care information service company that provides a variety
of computer-based information systems and services to hospitals
and their affiliates.
IDEXX Laboratories
1.68 17,100,000
IDEXX develops, manufactures and distributes biotechnology-based
detection systems. The company's products are currently used for
animal health, food quality assurance and biomedical research
applications.
Cisco Systems
1.61 16,368,750
The leading designer and builder of devices that link personal
computers in powerful networks. Cisco is a leader in the fast-
growing business network market.
Cardinal Health
1.54 15,592,500
A wholesale distributor of pharmaceutical, surgical and hospital
supplies and health and beauty aids.
U.S. Health Care
1.46 14,835,000
U.S. Health Care is a strong regional health maintenance
organization operating in the east, including the states of New
York, northern New Jersey and Pennsylvania.
Intel
1.41 14,355,000
The world's number one semiconductor manufacturer, Intel produces
microcomputer components, modules and systems.
Tellabs
1.38 14,040,000
Tellabs designs, manufactures and markets a broad range of
products and equipment for use by telephone companies, the Bell
System, specialized common carriers and other providers of
telecommunication services.
Micron Technology
1.28 13,020,000
Designs, manufactures and markets semiconductor memory components
primarily used in various computer applications.
Excludes short-term securities.
</TABLE>
PAGE
To our contract owners
Special Income Fund
picture of: Steven C. Merrell
Portfolio manager
From the portfolio manager
A gradually improving bond market set the stage for a rebound by
Special Income Fund during the first half of the fiscal year.
As is always the case for bond portfolios, the key to performance
during the six months was the interest-rate trend. In February
1994, the Federal Reserve began raising interest rates to temper
economic growth and thereby head off a potential spike in the
inflation rate. While the bulk of the interest-rate rise was over
by summer, long-term rates didn't begin to stabilize until late
in the year. Along the way, bond prices experienced a steep
decline - an automatic result of higher interest rates.
(Conversely, falling interest rates boost bond prices.)
The lingering effect of higher rates was still troubling the bond
market when the fund's fiscal year began last September, and the
fund lost ground during the fall. Still, the fund held up better
than some others, thanks in part to its holdings among low-grade
bonds, which were less affected by the environment.
The turnaround came in December. With inflation fears abating
somewhat, long-term interest rates leveled off, allowing bonds to
make modest progress. The forward momentum turned into a powerful
rally during January and February that more than made up for the
previous decline. The fund's performance was also aided by our
decision to substantially reduce our cash reserves and put that
money to work in long-term U.S. Treasury bonds.
While we don't expect the bond market to maintain its remarkable
early-year advance, we do look for a much better overall market
than we had in 1994. As we enter the second half of the fiscal
year, we have structured the portfolio with fewer low-grade bonds
and more mortgage-backed and Treasury securities. In addition, we
plan to continue our recent strategy of emphasizing longer-term
issues. We believe these shifts will keep the fund in good
position to benefit from the relatively positive investment
environment we think lies ahead.
Steven C. Merrell
PAGE
<TABLE>
<CAPTION>
Your fund's ten largest holdings
Special Income Fund
(Pie chart)
The ten holdings listed here make up 22.65% of the fund's net
assets
Percent Value
(of fund's net assets)(as of Feb. 28,
1995)
_________________________________________________________________
_____________
<S> <C> <C>
FNMA
6.50% 2023 4.49% $66,223,069
U.S. Treasury Bond
8.125% 2019 3.59 52,891,495
U.S. Treasury Note
7.50% 2001 3.46 50,935,995
FNMA
9.00% 2005 2.42 35,636,432
U.S. Treasury Note
7.875% 1996 2.06 30,370,497
GNMA
6.00% 2024 1.43 21,092,994
U.S. Treasury Bond
7.50% 2016 1.35 19,827,598
GMAC
6.375% 1996 1.34 19,800,000
Hydro Quebec
8.50% 2029 1.33 19,650,000
GNMA
6.00% 2024 1.18 17,343,576
Excludes short-term securities.
</TABLE>
PAGE
To our contract owners
Moneyshare Fund
picture of: Terry Fettig
Portfolio manager
From the portfolio manager
Ongoing economic growth fostered further increases in short-term
interest rates during the first half of the fund's fiscal year
(September 1994 through February 1995). Consistent with that
trend, the fund's yield also increased. For the seven-day period
ended February 28, 1995, the fund's compound annualized yield was
5.24%, and the simple annualized yield was 5.11%. The fund
maintained a stable $1 per share price throughout the six-month
period. (Although the fund seeks to maintain $1 per share price,
there is no assurance that it will be able to do so. Also, an
investment in the fund is neither insured nor guaranteed by the
U.S. government.)
The extended rise in short-term interest rates actually began in
February 1994, when the Federal Reserve Board started raising
rates to slow down the economy and, therefore, prevent a rapid
increase in the inflation rate. (The Fed adjusts short-term rates
based on the condition of the economy and the inflation outlook.
When the economy is weak and inflation is low, the Fed usually
lowers rates to stimulate the economy. When the economy is
growing rapidly, the Fed usually pushes up short-term rates to
moderate economic growth and keep inflation in check.) The Fed's
efforts have led to higher rates
of interest on the securities in which the fund invests and,
ultimately, to a higher fund yield.
As we enter the second half of the fiscal year, it appears that
the Fed will maintain its inflation-fighting policy for at least
the near term. If that proves true, short-term rates are likely
to rise a bit more, again boosting the fund's yield.
Given that forecast, we plan to stick with our recent approach of
keeping the portfolio's average maturity level (the length of
time before securities' principal payments are due) relatively
short. As it has for some months, this strategy will allow us to
quickly take advantage of higher-yielding securities should
interest rates continue to rise.
Terry Fettig
PAGE
To our contract owners
Managed Fund
picture of: Michael P. Ducar
Portfolio manager
picture of: Deborah L. Pederson
Portfolio manager
From the portfolio managers
The threat of rising interest rates kept the stock and bond
markets off balance throughout much of the first half of Managed
Fund's fiscal year (September 1994 through February 1995). The
investment environment improved later in the period, however,
allowing the fund to make up nearly all the lost ground.
Because of the detrimental effect of the higher-interest-rate
trend that dominated almost all of 1994, both stocks and bonds
remained in retreat when the period began last
fall. (Higher interest rates automatically depress bond prices,
and that condition usually spreads to stocks.) In fact, from
September through November, the fund experienced a decline of
approximately 4%.
The turning point for the markets and the fund came in December,
when long-term interest rates stabilized and, at times, even
moved lower. That immediately helped bonds get back on their feet
and began to rouse the slumping stock market. The positive
momentum gained a little strength in January, then turned into a
strong rally the following month.
As always, we maintained a broad mix of stocks during the period.
Overall, our
holdings among technology, pharmaceutical and health care
companies gave us the best returns. As the period progressed, we
reduced our bond holdings and moved more money into stocks, a
move which paid off especially well in February.
At period-end, the portfolio had about 66% of its assets in
stocks, 21% in bonds and
13% in cash reserves. While the markets will no doubt experience
fluctuations in the months ahead, we expect a more favorable
interest-rate environment to make 1995 a more productive year for
both stocks and bonds.
Michael P. Ducar
Deborah L. Pederson
PAGE
<TABLE>
<CAPTION>
Your fund's ten largest holdings (continued)
Managed Fund
(Pie chart)
The ten holdings listed here make up 13.41% of the fund's net
assets
Bonds Percent Value
(of fund's net assets)(as of Feb. 28,
1995)
_________________________________________________________________
_________________
<S> <C> <C>
U.S. Treasury Note
5.50% 1996 1.82% $47,847,751
U.S. Treasury Note
4.625% 1996 1.27 33,239,255
Common Stocks
General Electric 2.41 63,106,250
A diversified company with interests in manufacturing,
broadcasting (NBC), services and technology.
Royal Dutch Petroleum 1.28 33,637,500
Royal Dutch Petroleum Co., which includes Royal Dutch (the Dutch
version) and Shell Transport
(the English version), is a major oil company.
Intel 1.22 31,900,000
The world's number one semiconductor manufacturer, Intel produces
microcomputer components,
modules and systems.
Travelers 1.22 31,877,500
Among the world's largest multi-line financial services
companies, focusing on insurance, managed
health care and investments.
LIN Broadcasting 1.13 29,756,250
LIN Broadcasting Corp. engages in cellular telephone operations,
television broadcasting, and
specialty publishing.
Columbia/HCA Healthcare 1.03 26,893,750
Columbia/HCA Healthcare has transformed itself from a small
hospital management company to an operator of the largest
hospital chain (more than 200), and a factor in most other parts
of health care delivery through ownership or joint ventures.
Amoco 1.02 26,662,500
Amoco Corp. is one of the major integrated domestic oil and gas
companies known traditionally for its extensive petroleum
marketing operations.
United Technologies 1.01 26,550,000
United Technologies is a leading worldwide manufacturer of jet
engines, helicopters, heating/air conditioning equipment, and
elevators and escalators.
Excludes short-term securities.
</TABLE>
PAGE
<TABLE>
<CAPTION>
Statements of assets and liabilities
IDS Retirement Annuity Mutual Funds
February 28, 1995 (Unaudited)
Capital International Aggressive
Resource Equity Growth
Fund Fund Fund
Assets
______________________________________________________________________
_____________________<S> <C> <C> <C>
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated
issuers (identified cost, $3,035,262,294;
$1,252,091,204 and $906,096,029 , respectively)$3,036,662,512$1,176,625,856
$1,032,830,241
Investments in securities of affiliated issuers
(identified cost, $189,328,360 and $10,156,203 for
Capital Resource Fund and International Equity Fund)191,090,93810,816,843 --
Receivable for investment securities sold41,766,3617,226,668 8,755,499
Dividends and accrued interest receivable5,459,277 2,887,079 149,025
Receivable for forward foreign currency contracts
held, at value (Notes 1 and 4) -- 221,064,137 --
U.S. Government Securities held as collateral for
securities loaned (Note 6) -- 43,975,359 --
Receivable (for capital stock sold) from:
IDS Life Accounts 3,522,593 -- --
IDS Life of New York Accounts 164,888 -- --
______________________________________________________________________
_____________________Total assets3,278,666,569 1,462,595,9421,041,734,765
______________________________________________________________________
_____________________Liabilities
______________________________________________________________________
_____________________Cash overdraft 5,909,298 895,195 11,698,553
Dividends payable to separate accounts (Note 1) 9,808,801 -- 457,432
Payable for investment securities purchased32,176,9817,283,29813,126,246
Accrued investment management and services fee 1,565,225 806,806 489,584
Payable for forward foreign currency contracts
held, at value (Notes 1 and 4) -- 223,484,696 --
Payable for securities loaned (Note 6)1,216,600 51,041,889 --
Payable (for capital stock redeemed) to:
IDS Life Accounts -- 1,513,568 91,046
IDS Life of New York Accounts -- 57,614 47,441
Other accrued expenses 344,306 813,058 28,000
______________________________________________________________________
_____________________Total liabilities51,021,211 285,896,124 25,938,302
______________________________________________________________________
_____________________Net assets applicable to outstanding capital
stock $3,227,645,358$1,176,699,818$1,015,796,463
______________________________________________________________________
_____________________Represented by
______________________________________________________________________
_____________________Capital stock - authorized 10,000,000,000
shares for each fund of $.01 par value; outstanding,
133,735,457; 104,814,596 and 86,088,064 shares,
respectively 1,337,355$ 1,048,146$ 860,881
Additional paid-in capital 2,909,007,848 1,249,998,375962,876,753
Undistributed (excess of distributions over) net
investment income (25,730) 3,928,642 (7,402)
Accumulated net realized gain (loss) on investments
in securities 139,728,869 (1,092,300)(74,667,981)
Unrealized appreciation (depreciation) of
investments (Note 4) 177,597,016 (77,183,045)126,734,212
______________________________________________________________________
_____________________Total - representing net assets applicable to
outstanding
capital stock $3,227,645,358$1,176,699,818$1,015,796,463
______________________________________________________________________
_____________________Net asset value per share of outstanding capital
stock $ 24.14$ 11.23 $ 11.80
______________________________________________________________________
_____________________See accompanying notes to financial statements.
Statements of assets and liabilities (continued)
IDS Retirement Annuity Mutual Funds
February 28, 1995 (Unaudited)
Special Moneyshare Managed
Income Fund Fund
Fund
Assets
______________________________________________________________________
_________________________
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated
issuers (identified cost, $1,483,046,077;
$194,540,558 and $2,519,052,187, respectively)$1,441,602,584$194,540,558 $2,663,507,119
Cash in bank on demand deposit -- 140,357 --
Receivable for investment securities sold41,779,054 -- 27,875,798
Dividends and accrued interest receivable25,264,432 54,029 12,515,220
Receivable for forward foreign currency contracts
held, at value (Notes 1 and 4) 32,073,912 -- --
U.S. Government Securities held as collateral for
securities loaned (Note 6) 50,526,523 -- 89,485,242
Receivable (for capital stock sold) from:
IDS Life Accounts 7,727,726 631,224 11,496,358
IDS Life of New York Accounts 386,895 25,162 710,383
______________________________________________________________________
_________________________
Total assets 1,599,361,126 195,391,3302,805,590,120
______________________________________________________________________
_________________________
Liabilities
______________________________________________________________________
_________________________
Cash overdraft 2,431,532 -- 7,580,140
Dividends payable to separate accounts (Note 1) 9,217,873 805,035 17,688,279
Payable for investment securities purchased30,671,541 -- 30,801,675
Accrued investment management and services fee 712,581 79,991 1,275,636
Payable for forward foreign currency contracts
held, at value (Notes 1 and 4) 32,111,480 -- --
Payable for securities loaned (Note 6)50,526,523 --126,411,942
Payable (for capital stock redeemed) to:
IDS Life Accounts 26,780 24,832 --
IDS Life of New York Accounts -- 9,807 --
Other accrued expenses 84,168 52,799 464,033
______________________________________________________________________
________________________
Total liabilities 125,782,478 972,464184,221,705
______________________________________________________________________
________________________
Net assets applicable to outstanding capital stock$1,473,578,648$194,418,866
$2,621,368,415
______________________________________________________________________
________________________
Represented by
______________________________________________________________________
________________________
Capital stock - authorized 10,000,000,000
shares for each fund of $.01 par value ($.001 for
Managed Fund); outstanding, 135,343,261;
194,434,352 and 195,402,103 shares, respectively$ 1,353,433$ 1,944,343 $
195,402
Additional paid-in capital 1,535,312,751 192,475,1872,527,861,363
Undistributed (excess of distributions over) net
investment income (1,159,213) (127) 876,426
Accumulated net realized loss on investments
in securities (19,176,292) (537)(52,029,876)
Unrealized appreciation (depreciation) of investments
(Notes 4 and 7) (42,752,031) --144,465,100
______________________________________________________________________
_________________________
Total - representing net assets applicable to outstanding
capital stock $1,473,578,648 $194,418,866$2,621,368,415
______________________________________________________________________
_________________________
Net asset value per share of outstanding capital stock$
10.89 $ 1.00$ 13.42
______________________________________________________________________
__________________________
See accompanying notes to financial statements.
Statements of operations
IDS Retirement Annuity Mutual Funds
Six months ended February 28, 1995 (Unaudited)
Capital InternationalAggressive
Resource Equity Growth
Fund Fund Fund
______________________________________________________________________
_________________________
Income:
Investment income
Dividends (net of foreign taxes withheld of $73,955;
$1,294,685 and $8,712, respectively)$ 23,076,364 $ 7,207,925$ 1,194,396
Interest 5,156,822 4,231,224 2,841,479
______________________________________________________________________
__________________________
Total income 28,233,186 11,439,149 4,035,875
______________________________________________________________________
__________________________
Expenses (Note 2):
Investment management and services fee9,501,306 5,182,746 2,812,234
Custodial fees and expenses 159,587 984,338 20,359
Directors and officers compensation 50,164 18,893 9,217
Printing & postage 275,000 250,000 60,000
Audit fees 18,000 18,000 12,000
Registration fees 150,000 110,000 60,000
Other 14,323 12,338 4,111
______________________________________________________________________
__________________________
Total expenses 10,168,380 6,576,315 2,977,921
______________________________________________________________________
__________________________
Investment income - net 18,064,806 4,862,834 1,057,954
______________________________________________________________________
__________________________
Realized and unrealized gain (loss) on investments - net
______________________________________________________________________
__________________________
Net realized gain (loss) on security transactions (including $267,342
and $149,509 realized gain on investments of affiliated issuers
for Capital Resource Fund and International Equity
Fund, respectively) (Note 3) 140,697,788 1,652,475(37,973,811)
Net realized loss on foreign currency transactions (29,819)(2,744,775) --
Net realized gain on closed option contracts written -- -- --
______________________________________________________________________
__________________________
Net realized gain (loss) on investments 140,667,969(1,092,300)(37,973,811)
Net change in unrealized appreciation or depreciation
of investments (including $13,814,372 and $234,678
net unrealized appreciation of affiliated issuers
for Capital Resource Fund and International
Equity Fund, respectively) (42,117,260) (165,948,160) 67,549,268
______________________________________________________________________
__________________________
Net gain (loss) on investments 98,550,709 (167,040,460) 29,575,457
______________________________________________________________________
__________________________
Net increase (decrease) in net assets resulting
from operations $116,615,515$(162,177,626)$30,633,411
______________________________________________________________________
__________________________
See accompanying notes to financial statements.
Statements of operations
IDS Retirement Annuity Mutual Funds
Six months ended February 28, 1995 (Unaudited)
Special Moneyshare Managed
Income Fund Fund
Fund
______________________________________________________________________
__________________________
Income:
Investment income
Dividends (net of foreign taxes withheld of
$107,071 for Managed Fund) $ 759,227$ --$16,091,945
Interest 62,270,148 5,043,509 31,120,215
______________________________________________________________________
__________________________
Total income 63,029,375 5,043,509 47,212,160
______________________________________________________________________
__________________________
Expenses (Note 2):
Investment management and services fee4,688,114 493,233 8,007,590
Custodial fees and expenses 55,041 5,195 163,734
Directors and officers compensation 22,129 2,120 52,889
Printing & postage 70,000 5,000 270,000
Audit fees 10,000 6,000 20,000
Registration fees 20,000 125 150,000
Other 3,104 460 14,487
______________________________________________________________________
__________________________
Total expenses 4,868,388 512,133 8,678,700
______________________________________________________________________
__________________________
Investment income - net 58,160,987 4,531,376 38,533,460
______________________________________________________________________
__________________________
Realized and unrealized gain (loss) on investments - net
______________________________________________________________________
__________________________
Net realized gain (loss) on security transactions (Note3)(17,931,604)144 (48,147,498)
Net realized loss on foreign currency transactions (237,186) -- --
Net realized gain on closed options contracts written164,437 -- --
Net realized gain (loss) on closed interest rate
futures contracts 676,379 --(3,491,434)
______________________________________________________________________
__________________________
Net realized gain (loss) on investments(17,327,974) 144(51,638,932)
Net change in unrealized appreciation or
depreciation of investments (5,142,681) -- 10,077,498
______________________________________________________________________
__________________________
Net gain (loss) on investments (22,470,655) 144(41,561,434)
______________________________________________________________________
__________________________
Net increase (decrease) in net assets resulting
from operations $ 35,690,332 $4,531,520$(3,027,974)
______________________________________________________________________
__________________________
See accompanying notes to financial statements.
</TABLE>
PAGE
<TABLE>
<CAPTION>
Statements of changes in net assets
IDS Retirement Annuity Mutual Funds
Capital Resource Fund International Equity Fund
Six months ended Year endedSix months endedYear ended
2/28/95 8/31/94 2/28/95 8/31/94
(Unaudited) (Unaudited)
Operations and distributions
______________________________________________________________________
__________________________
<S> <C> <C> <C> <C>
Investment income - net $ 18,064,806$ 30,730,527$ 4,862,834
$ 7,630,484
Net realized gain (loss) on investments140,667,969 300,809,352 (1,092,300) 24,648,901
Net change in unrealized appreciation or
depreciation of investments(42,117,260)(135,555,243)(165,948,160)63,468,345
______________________________________________________________________
__________________________
Net increase (decrease) in net assets
resulting from operations 116,615,515195,984,636 (162,177,626) 95,747,730
______________________________________________________________________
__________________________
Distributions to shareholders from:
Net investment income (18,000,004)(30,730,527) (2,496,050) (2,495,587)
Net realized gain on investments(882,072)(300,690,606) --(24,648,901)
Excess distributions of net
investment income (Note 1) -- (14,735) -- --
Excess distributions of net realized
gain (Note 1) -- -- (5,473,905)
______________________________________________________________________
__________________________
Total distributions (18,882,076)(331,435,868) (2,496,050)(32,618,393)
______________________________________________________________________
__________________________
Capital share transactions (Note 8)
______________________________________________________________________
__________________________
Proceeds from sales 228,469,144426,174,442 236,135,766 731,788,058
Reinvested distributions at net asset value18,882,076331,435,868 2,496,050 32,618,393
Payments for redemptions (16,881,752)(31,015,165) (8,551,043) (7,151,829)
______________________________________________________________________
__________________________
Increase in net assets from capital
share transactions 230,469,468726,595,145 230,080,773 757,254,622
______________________________________________________________________
___________________________
Total increase in net assets328,202,907591,143,913 65,407,097 820,383,959
______________________________________________________________________
___________________________
Net assets at beginning of period2,899,442,4512,308,298,5381,1
11,292,721 290,908,762
______________________________________________________________________
___________________________
Net assets at end of period$3,227,645,358$2,899,442,451$1,176,699,818$1,111,292,721
______________________________________________________________________
___________________________
Undistributed (excess of distributions over)
net investment income$ (25,730)$ (90,532) $
3,928,642 $ 1,561,858
______________________________________________________________________
____________________
See accompanying notes to financial statements.
</TABLE>
PAGE
<TABLE>
<CAPTION>
Statements of changes in net assets
IDS Retirement Annuity Mutual Funds
Aggressive Growth Fund Special Income Fund
Six months ended Year endedSix months endedYear ended
2/28/95 8/31/94 2/28/95 8/31/94
(Unaudited) (Unaudited)
______________________________________________________________________
_____________________
<S> <C> <C> <C> <C>
Operations and distributions
Investment income - net$ 1,057,954$ 699,372$58,160,987$ 117,482,199
Net realized gain (loss) on investments(37,973,811)(31,561,811)(17,327,974) 20,195,502
Net change in unrealized appreciation or
depreciation of investments67,549,268 16,989,673 (5,142,681)(163,872,465)
______________________________________________________________________
___________________________
Net increase (decrease) in net assets
resulting from operations 30,633,411(13,872,766) 35,690,332(26,194,764)
______________________________________________________________________
___________________________
Distributions to shareholders from:
Net investment income (1,057,488) (707,260) (57,920,343)(119,630,572)
Net realized gain on investments -- -- (1,796,496)(2,399,451)
Excess distributions of net investment
income (Note 1) -- (7,868) --(1,451,679)
______________________________________________________________________
___________________________
Total distributions (1,057,488) (715,128) (59,716,839)(123,481,702)
______________________________________________________________________
___________________________
Capital share transactions (Note 8)
______________________________________________________________________
___________________________
Proceeds from sales 227,355,002482,655,450 6,680,959200,309,350
Reinvested distributions at net asset value1,057,488 715,128 59,716,839 123,481,702
Payments for redemptions (4,841,650)(5,228,787)(127,709,646)(166,515,324)
______________________________________________________________________
___________________________
Increase (decrease) in net assets from
capital share transactions223,570,840478,141,791 (61,311,848)157,275,728
______________________________________________________________________
___________________________
Total increase (decrease) in net assets253,146,763463,553,897(85,338,355) 7,599,262
______________________________________________________________________
___________________________
Net assets at beginning of period762,649,700299,095,8031,558,917,0031,551,317,741
______________________________________________________________________
___________________________
Net assets at end of period$1,015,796,463$762,649,700$1,473,578,648$1,558,917,003
______________________________________________________________________
___________________________
Excess of distributions over
net investment income$ (7,402)$ (7,868)$
(1,159,213) $ (1,399,857)
______________________________________________________________________
___________________________
See accompanying notes to financial statements.
</TABLE>
PAGE
<TABLE>
<CAPTION>
Statements of changes in net assets
IDS Retirement Annuity Mutual Funds
Moneyshare Fund Managed Fund
Six months ended Year endedSix months endedYear ended
2/28/95 8/31/94 2/28/95 8/31/94
(Unaudited) (Unaudited)
______________________________________________________________________
___________________________
<S> <C> <C> <C> <C>
Operations and distributions
Investment income - net $ 4,531,376 $5,413,679$ 38,533,460$75,979,672
Net realized gain (loss) on investments 144 (681)(51,638,932) 72,533,563
Net change in unrealized appreciation or
depreciation of investments -- -- 10,077,498(113,344,204)
______________________________________________________________________
___________________________
Net increase (decrease) in net assets
resulting from operations 4,531,520 5,412,998 (3,027,974) 35,169,031
______________________________________________________________________
___________________________
Distributions to shareholders from:
Net investment income (4,531,503)(5,413,679) (38,516,737)(75,894,536)
Net realized gain on investments -- -- --(71,974,644)
______________________________________________________________________
___________________________
Total distributions (4,531,503)(5,413,679) (38,516,737)(147,869,180)
______________________________________________________________________
___________________________
Capital share transactions (Note 8)
______________________________________________________________________
___________________________
Proceeds from sales 41,114,237 54,005,120 145,852,887629,387,611
Reinvested distributions at net asset value4,531,5035,413,679 38,516,737 147,869,180
Payments for redemptions (30,469,662)(59,822,520)(20,811,501)(23,003,414)
______________________________________________________________________
___________________________
Increase (decrease) in net assets from
capital share transactions 15,176,078 (403,721) 163,558,123754,253,377
______________________________________________________________________
___________________________
Total increase (decrease) in net assets15,176,095 (404,402)122,013,412 641,553,228
______________________________________________________________________
___________________________
Net assets at beginning of period179,242,771179,647,1732,499,355,0031,857,801,775
______________________________________________________________________
___________________________
Net assets at end of period$194,418,866$179,242,771$2,621,368,415$2,499,355,003
______________________________________________________________________
___________________________
Undistributed (excess of distributions over)
net investment income$ (127)$ --$
876,426 $ 859,703
______________________________________________________________________
___________________________
See accompanying notes to financial statements.
</TABLE>
PAGE
Notes to financial statements
Retirement Annuity Mutual Funds
(Unaudited as to Feb. 28, 1995)
_________________________________________________________________
_____________1. Summary of significant accounting policies
Each fund is registered under the Investment Company Act of 1940
as amended (the 1940 Act), as a diversified, open-end management
investment company. Shares of each fund are sold through the
purchase of an annuity contract offered by IDS Life Insurance
Company (IDS Life) or its affiliates.
The significant accounting policies followed by the funds are
summarized as follows:
Valuation of securities
Securities traded on national securities exchanges or included in
the NASDAQ National Market System are valued at the last quoted
sales price at the close of each business day; securities traded
over-the-counter but not included in the NASDAQ National Market
System and securities for which a last quoted sales price is not
readily available are valued at the mean of the bid and asked
prices. Bonds and other securities are valued at fair value as
determined by the board of directors when market quotations are
not readily available. Determination of fair value involves,
among other things, references to market indexes, matrixes and
data from independent brokers. Short-term securities in Capital
Resource Fund, International Equity Fund, Aggressive Growth Fund,
Special Income Fund and Managed Fund maturing in more than 60
days from the valuation date are valued at the market price or
approximate market value based on the current interest rates;
those maturing in 60 days or less are valued at amortized cost.
Pursuant to Rule 2a-7 of the 1940 Act, all securities in
Moneyshare Fund are valued at amortized cost which approximates
market value in order to maintain a constant net asset value of
$1 per share.
Option transactions
In order to produce incremental earnings, protect gains, and
facilitate buying and selling of securities for investment
purposes, the funds may buy and sell put and call options and
write covered call options on portfolio securities and write cash-
secured puts. The risk in writing a call option is that the
funds give up the opportunity for profit if the market price of
the security increases. The risk in writing a put option is that
the funds may incur a loss if the market price of the security
decreases and the option is exercised. The risk in buying an
option is that the funds pay a premium whether or not the option
is exercised. The funds also have the additional risk of not
being able to enter into a closing transaction if a liquid
secondary market does not exist. The funds also may write over-
the-counter options where the completion of the obligation is
dependent upon the credit standing of the other party.
Option contracts are valued daily and unrealized appreciation or
depreciation is recorded. The funds will realize a gain or loss
upon expiration or closing of the option transaction. When an
option is exercised the proceeds on sales for a written call
option, the purchase cost for a written put option or the cost of
a security for a purchased put or call option is adjusted by the
amount of premium received or paid.
Futures transactions
In order to gain exposure to or protect itself from changes in
the market, the funds may buy and sell stock index and interest
rate futures contracts. Risks of entering into futures contracts
and related options include the possibility that there may be an
illiquid market and a change in the value of the contract or
option may not correlate with changes in the value of the
underlying securities.
Upon entering into a futures contract, the funds may be required
to deposit either cash or securities in an amount (initial
margin) equal to a certain percentage of the contract value.
Subsequent payments (variation margin) are made or received by
the funds each day. The variation margin payments are equal to
the daily changes in the contract value and recorded as
unrealized gains and losses. The funds recognize a realized gain
or loss when the contract is closed or expires.
Foreign currency translations and forward foreign currency
contracts
Securities and other assets and liabilities denominated in
foreign currencies are translated daily into U.S. dollars at the
closing rate of exchange. Foreign currency amounts related to
the purchase or sale of securities, income and expenses are
translated at the exchange rate on the transaction date. It is
not practicable to identify that portion of realized and
unrealized gain (loss) arising from changes in the exchange rates
from the portion arising from changes in the market value of
investments.
The funds also may enter into forward foreign currency exchange
contracts for operational purposes. The net U.S. dollar value of
foreign currency underlying all contractual commitments held by
the funds and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates
from an independent pricing service. The funds are subject to
the credit risk that the other party will not complete the
obligations of the contract.
Illiquid securities
At Feb. 28, 1995, investments in securities for Special Income
Fund included issues that are illiquid. The Funds currently
limit investments in illiquid securities to 10% (15% for Capital
Resource Fund) of the net assets, at market value, at the time of
purchase. The aggregate value of such securities at Feb. 28,
1995, was $12,068,518, which represents 0.8 percent of net assets
for Special Income Fund. Pursuant to guidelines adopted by the
board of directors, certain unregistered securities are
determined to be liquid and are not included within the
limitations specified above.
Federal income taxes
Since each fund intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to the
Variable Accounts, no provision for income or excise taxes is
required. Each fund is treated as a separate entity for federal
income tax purposes.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes primarily because
of the deferral of losses on certain futures contracts, the
recognition of certain foreign currency gains (losses) as
ordinary income (loss) for tax purposes, the timing and amount of
market discount recognized as ordinary income, foreign tax
credits and losses deferred due to "wash sale" transactions. The
character of distributions made during the year from net
investment income or net realized gains may differ from their
ultimate characterization for federal income tax purposes. The
effect on dividend distributions of certain book-to-tax
differences is presented as "excess distributions" in the
statement of changes in net assets. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized
gains (losses) are recorded by the funds.
Dividends
At Feb. 28, 1995, dividends were declared of $.073 per share for
Capital Resource Fund, $0 for International Equity Fund, $.005
for Aggressive Growth Fund, $.069 for Special Income Fund, $.004
for Moneyshare Fund and $.091 for Managed Fund payable March 2,
1995. Distributions to the Variable Accounts are recorded as of
the close of business on the record date and are payable on the
first business day following the record date. Dividends from net
investment income are declared daily and paid monthly for Special
Income Fund and Moneyshare Fund and declared and paid quarterly
for Capital Resource Fund, International Equity Fund, Aggressive
Growth Fund, and Managed Fund. Capital gain distributions (if
any) will be made annually. However, an additional capital gain
distribution may be made during the fiscal year in order to
comply with the Internal Revenue Code, as applicable to regulated
investment companies.
Other
Security transactions are accounted for on the date the
securities are purchased or sold. Dividend income is recognized
on the ex-dividend date and interest income, including
amortization of premium and discount on a level yield basis, is
accrued daily.
_________________________________________________________________
_____________
2. Investment management and services agreement
Under the terms of an agreement effective Nov. 13, 1991, (Jan. 9,
1992 for International Equity Fund and Aggressive Growth Fund),
the fee paid to IDS Life for investment management and services
for Capital Resource Fund, International Equity Fund, Aggressive
Growth Fund, Special Income Fund and Managed Fund is computed in
two parts. The first part is a graduated group asset charge
based on the combined net assets of all non-money market funds in
the IDS MUTUAL FUND GROUP. It is equal on an annual basis to
0.46 percent on the first $5 billion of daily net assets and
scaling down thereafter in reduced percentages of each succeeding
billion to 0.32 percent on all net assets in excess of $50
billion. The daily group asset charge equals the daily rate
multiplied by that Fund's net assets for that day. The second
part is based on the average daily net assets of each Fund and is
equal to 0.25 percent of its daily net assets on an annual basis,
except International Equity Fund. International Equity Fund's
individual asset charge is equal to 0.50 percent annually of its
daily net assets. Both parts of the fee are payable monthly.
Under the terms of an agreement effective Oct. 14, 1988, the
investment management and services fee for Moneyshare Fund will
be paid to IDS Life monthly. The fee is computed on a graduated
fee scale equal on an annual basis to 0.54 percent of the first
$1 billion of average daily net assets and scaling down
thereafter in reduced percentages of each succeeding $500 million
to 0.46 percent of all average daily net assets in excess of $2.5
billion.
Effective March 1995, the funds entered into a new agreement with
IDS Life for managing investments, recordkeeping and other
services which are based solely on the assets of each fund, not
on the assets of the GROUP. The management fee is a percentage
of each fund's average daily net assets in reducing percentages
from 0.63% to 0.57% annually for Capital Resource, 0.87% to
0.795% for International Equity, 0.65% to 0.575% for Aggressive
Growth, 0.61% to 0.535% for Special Income, 0.51% to 0.44% for
Moneyshare, and 0.63% to 0.55% for Managed.
IDS Life, in turn, pays to IDS Financial Corporation a fee based
on a percentage of each Fund's average daily net assets for the
year. This fee is equal to 0.50 percent for International Equity
Fund and 0.25 percent for each remaining fund. In addition to
paying its own management fee, brokerage commissions, taxes, and
costs of certain legal services, each fund will reimburse IDS
Life an amount equal to the cost of certain expenses incurred and
paid by IDS Life in connection with each fund's operations. The
reimbursement paid by Moneyshare Fund will be limited to 0.25
percent of the fund's average daily net assets.
Also effective March 1995, the funds entered into an
administrative and accounting agreement with American Express
Financial Corporation. The administration and accounting
agreement is a percentage of each fund's average daily net assets
in reducing percentages from 0.05% to 0.03% annually for Capital
Resource, 0.06% to 0.035% for International Equity, 0.06% to
0.035% for Aggressive Growth, 0.05% to 0.025% for Special Income,
0.03% to 0.02% for Moneyshare, and 0.04% to 0.02% for Managed.
The funds have a retirement plan for its independent directors.
Upon retirement directors receive monthly payments equal to one-
half of the retainer fee for as many months as they served as a
director up to 120 months. There are no death benefits. The
plan is not funded but the fund recognizes the cost of payments
during the time the directors serve on the Board. The retirement
plan expense for the six months ended Feb. 28, 1995 amounted to
$14,574 for Capital Resource Fund, $1,569 for International
Equity Fund, $387 for Aggressive Growth Fund, $8,855 for Special
Income Fund, $0 for Moneyshare Fund and $9,910 for Managed Fund.
_________________________________________________________________
_____________
3. Securities transactions
For the six months ended Feb. 28, 1995, cost of purchases and
proceeds from sales of securities aggregated, respectively,
$770,729,806 and $755,515,451 for Moneyshare Fund; cost of
purchases and proceeds from sales of securities (other than short-
term obligations) aggregated, respectively, $1,267,845,213 and
$1,001,805,566 for Capital Resource Fund; $397,266,372
and $182,937,336 for International Equity Fund; $503,204,911 and
$386,030,927 for Aggressive Growth Fund; $306,936,223 and
$413,954,426 for Special Income Fund; $1,154,154,815 and
$1,032,213,335 for Managed Fund. Net realized gains (losses) on
investment sales are determined on the basis of identified costs.
Brokerage commissions paid to brokers affiliated with IDS Life
were $505,614 for Capital Resource Fund, $112,339 for Aggressive
Growth Fund and $149,090 for Managed Fund for the six months
ended Feb. 28, 1995.
_________________________________________________________________
_____________4. Forward foreign currency contracts
At Feb. 28, 1995, International Equity Fund and Special Income
Fund had entered into forward foreign currency exchange contracts
that obligate the funds to deliver currencies at specified future
dates. The unrealized appreciation or depreciation of the
contracts is reflected in the accompanying financial statements.
The terms of the open contracts are as follows:
<TABLE>
<CAPTION>
International Equity Fund
_________________________________________________________________
_____________
U.S.dollar value U.S. dollar value
Currency toas of Currency to as of
Exchange datebe deliveredFeb. 28, 1995 be received Feb. 28,1995
_____________________________________________________________________
_________
<S> <C> <C> <C> <C>
March 1, 1995 4,962,296$ 4,962,296 639,461,266$ 5,002,631
U.S. Dollar Spanish Peseta
March 2, 1995 21,055,650 3,257,094 3,247,574 3,247,574
Norwegian Krona U.S. Dollar
March 7, 1995 649,552 649,552 410,511 649,901
U.S. Dollar British Pound
March 31, 199511,906,267 2,321,498 2,314,031 2,314,031
French Franc U.S. Dollar
March 31, 1995210,924,00027,282,711 27,000,000 27,000,000
Hong Kong Dollar U.S. Dollar
March 31, 19955,539,240,00057,532,332 56,000,000 56,000,000
Japanese Yen U.S. Dollar
May 16, 1995 9,531,450 8,974,746 8,850,000 8,850,000
Argentine Peso U.S. Dollar
Nov. 30, 199511,090,820,000118,504,467118,000,000118,000,000
Japanese Yen U.S. Dollar
___________ ___________
$223,484,696 $221,064,137
_________________________________________________________________
_____________
</TABLE>
<TABLE>
<CAPTION>
Special Income Fund
_________________________________________________________________
_____________
U.S.dollar value U.S. dollar value
Currency toas of Currency to as of
Exchange datebe deliveredFeb. 28, 1995 be received Feb. 28,
1995
_________________________________________________________________
_____________
<S> <C> <C> <C> <C>
March 10, 19952,039,004,443$21,113,17121,084,134$21,084,134
Japanese Yen U.S. Dollar
March 2, 19952,999,999 2,999,999 17,819,994 2,982,426
U.S. Dollar Mexican Peso
March 6, 19954,108,818 4,108,818 2,593,951 4,106,613
U.S. Dollar British Pound
March 6, 19953,889,492 3,889,492 6,502,531,250 3,900,739
U.S. Dollar Italian Lira
___________ ___________
$32,111,480 $32,073,912
_________________________________________________________________
__________
</TABLE>
_________________________________________________________________
__________
5. Options contracts written
The number of contracts and premium amounts associated with
option contracts written by Special Income Fund during the period
ended Feb. 28, 1995 is as follows:
<TABLE>
<CAPTION>
Puts
Contracts Premium
_________________________________________________________________
____
<S> <C> <C>
Balance Aug. 31, 1994 --$ --
_________________________________________________________________
____
Opened 450 164,437
Closed or expired (200) (80,250)
Exercised (250) (84,187)
_________________________________________________________________
____
Balance Feb. 28, 1995 --
$ --
_________________________________________________________________
____
</TABLE>
_________________________________________________________________
____
6. Lending of portfolio securities
Presented below is information regarding securities on loan at
Feb. 28, 1995.
<TABLE>
<CAPTION>
Capital International Special
ResourceEquity Income Managed
___________________________________________________________________________
_________
<S> <C> <C> <C> <C>
Value of securities on loan to brokers$1,281,975$47,357,968$50,935,500
$120,249,463
___________________________________________________________________________
_________
Collateral received for securities loaned:
Cash $1,216,600$ 7,066,530$ -- 3
5,596,000
U.S. Government Securities, at value -- 43,975,359 50,526,523
88,397,723
___________________________________________________________________________
_________
Total collateral received for securities
loaned $1,216,600$51,041,889$50,526,523$123,993,723
___________________________________________________________________________
_________
</TABLE>
For the six months ended Feb. 28, 1995, income from security
lending transactions amounted to $58,862, $226,560, $29,180 and
$173,044 for Capital Resource Fund, International Equity Fund,
Special Income Fund and Managed Fund, respectively, and has been
included with interest income in the statement of operations.
The risks related to security lending transactions
are the borrower may not provide additional collateral when
required or return the securities when due.
_________________________________________________________________
_____________
7. Interest rate futures contracts
The funds pledge securities or cash as collateral when making initial deposits
on future contracts.
On Feb. 28, 1995, information about the funds' open futures contracts is as
follows:
<TABLE>
<CAPTION>
Collateral
pledged to Market
Long (L) Type of cover intitial value
Net
or contract and Number of margin of open
unrealized
Short (S) maturity contracts deposit
contracts loss
________________________________________________________________________________
_________
<S> <C> <C> <C> <C> <C> <C>
Special Income S U.S. Treasury
Fund March 1995
T-Bond 200 $2,114,000$20,794,000$(1,203,125)
________________________________________________________________________________
_________
</TABLE>
_________________________________________________________________
_____________
8. Capital share transactions
Transactions in shares of each Fund for the six months ended Feb.
28, 1995 and the year ended Aug. 31, 1994 were as follows:
<TABLE>
<CAPTION>
Number of shares: Six months ended Feb. 28, 1995
_____________________________________________________________________________________
___________________ CapitalInternationalAggressiveSpecial
Resource Equity Growth Income Moneyshare Managed
_____________________________________________________________________________________
___________________<S> <C> <C> <C> <C> <C> <C>
Shares at beginning of period123,760,19586,049,71566,571,368141,040,088
179,257,043 183,064,969
Sold 9,890,02119,298,17219,844,975618,63441,117,67410,989,280
Issued for reinvested
distributions 809,825 220,715 91,2615,553,6684,531,8782,930,665
Redeemed (724,584)(754,006)(419,540)(11,869,129)(30,472,243)(1,582,811)
_____________________________________________________________________________________
___________________
Net increase (decrease)9,975,26218,764,88119,516,696(5,696,827)15,177,309 12,337,134
_____________________________________________________________________________________
___________________
Shares at end of period133,735,457104,814,59686,088,064135,343,261194,434,352
195,402,103
_____________________________________________________________________________________
___________________
Number of shares: Year ended Aug. 31, 1994
_____________________________________________________________________________________
___________________
CapitalInternationalAggressiveSpecial
Resource Equity Growth Income Moneyshare Managed
_____________________________________________________________________________________
___________________
Shares at beginning of year93,921,90325,082,64425,614,230128,401,403179,660,778
129,702,882
Sold 17,017,81458,988,54241,343,09216,667,63654,009,53044,299,470
Issued for reinvested
distributions 14,130,7432,534,743 61,19910,704,8575,414,11210,732,030
Redeemed (1,310,265)(556,214) (447,153)(14,733,808)(59,827,377)(1,669,413)
_____________________________________________________________________________________
___________________
Net increase (decrease)29,838,29260,967,07140,957,13812,638,685(403,735) 53,362,087
_____________________________________________________________________________________
___________________
Shares at end of year123,760,19586,049,71566,571,368141,040,088179,257,043
183,064,969
_____________________________________________________________________________________
___
</TABLE>
_________________________________________________________________
_________
9. Tax loss carryforward
For federal income tax purposes, Aggressive Growth Fund had a
capital loss carryover at Aug. 31, 1994 of $34,506,813, which, if
not offset by subsequent capital gains, will expire in 2001
through 2003. It is unlikely the board of directors will
authorize a distribution of any net realized gain for a Fund
until its capital loss carryover has been offset or expires.
_________________________________________________________________
_____
PAGE
Capital Resource Fund
Financial highlights
10. Financial highlights
The tables below show certain important information for
evaluating each fund's results.
<TABLE>
<CAPTION>
The tables below show certain important financial information for
evaluating each fund's result.
Fiscal year ended August 31,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period$23.43$24.58 $23.90$23.15 $17.54 $20.17
____________________________________________________________________
______________Income (loss) from investment operations:
Net investment income .14 .29 .23 .21 .40 .52
Net gains (losses) on securities (both realized
and unrealized) .72 1.56 1.89 1.75 6.61(2.06)
____________________________________________________________________
______________Total from investment operations.86 1.85 2.12 1.96 7.01 (1.54)
____________________________________________________________________
______________Less distributions:
Dividends from net investment income(.14) (.29) (.23) (.21) (.40) (.52)
Distributions from realized gains (.01) (2.71) (1.21)(1.00) (1.00) (.57)
____________________________________________________________________
______________Total distributions (.15) (3.00) (1.44) (1.21) (1.40) (1.09)
____________________________________________________________________
______________Net asset value, end of period$24.14$23.43$24.58 $23.90 $23.15
$17.54
____________________________________________________________________
______________
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
Net assets, end of period
(in millions) $3,228 $2,899 $2,308 $1,681 $1,191 $702
Ratio of expenses to average
daily net assets .68%# .68% .68% .70% .70% .70%
Ratio of net income to average
daily net assets 1.21%# 1.20% 0.94% 0.91% 1.94% 2.69%
Portfolio turnover rate
(excluding short-term
securities) 35% 85% 65% 63% 74% 82%
____________________________________________________________________
______________Total Return***3.67%##7.61% 8.87% 8.54% 40.68% (7.79)%
____________________________________________________________________
______________*For a share outstanding throughout the year. Rounded
to the nearest cent.
**Six months ended Feb. 28, 1995 (Unaudited).
***Total return does not reflect payment of the expenses that apply
to the variable accounts or any annuity charges.
#Adjusted to an annual basis.
##For the fiscal period ended Feb. 28, 1995, the annualized total
return is 7.34%.
</TABLE>
PAGE
International Equity fund
Financial highlights
<TABLE>
<CAPTION>
Fiscal year ended August 31,
Per share income and capital changes*
1995*** 1994 1993 1992**
<S> <C> <C> <C> <C>
Net asset value, beginning of period$12.91$11.60 $10.01 $10.00
_________________________________________________________________
_____________Income from investment operations:
Net investment income .03 .14 .15 .05
Net gains on securities (both
realized and unrealized) (1.68) 1.61 1.81 .01
_________________________________________________________________
_____________Total from investment operations(1.65) 1.75 1.96 .06
_________________________________________________________________
_____________Less distributions:
Dividends from net investment income(.03) (.08) (.15) (.05)
Distributions from realized gains - (.29) (.22) -
Excess distributions from realized gains - (.07) - -
_________________________________________________________________
_____________Total distributions (.03) (.44) (.37) (.05)
_________________________________________________________________
_____________Net asset value, end of period$11.23 $12.91 $11.60 $10.01
_________________________________________________________________
_____________
Ratios/supplemental data
1995*** 1994 1993 1992**
Net assets, end of period (in millions) $1,177 $1,111 $291 $39
_________________________________________________________________
_____________Ratio of expenses to average
daily net assets 1.12%# .98%1.10%1.57%#
Ratio of net income to average
daily net assets .83%# 1.09%1.37% 0.93%#
Portfolio turnover rate (excluding
short-term securities) 18% 51% 62% 22%
_________________________________________________________________
_____________Total Return### (12.78)%+ 15.11% 19.76% 0.55%##
______________________________________________________________________________
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Commencement of operations. Period from Jan. 13, 1992 to Aug. 31, 1992.
***Six months ended Feb. 28, 1995 (Unaudited).
#Adjusted to an annual basis.
##For the period from Jan. 13, 1992 to Aug. 31, 1992, the annualized total return is
0.87%.
###Total return does not reflect payment of the expenses that apply to the variable
accounts or any annuity charges.
+For the fiscal period ended Feb. 28, 1995, the annualized total return is (25.56) %.
</TABLE>
PAGE
Aggressive Growth Fund
Financial highlights
<TABLE>
<CAPTION>
Fiscal year ended August 31,
Per share income and capital changes*
1995*** 1994 1993 1992**
<S> <C> <C> <C> <C>
Net asset value, beginning of period$11.46$11.68 $9.00 $10.00
_________________________________________________________________
_____________Income (loss) from investment operations:
Net investment income .01 .01 .02 .02
Net gains (losses) on securities (both
realized and unrealized) .34 (.22) 2.68 (1.00)
_________________________________________________________________
_____________Total from investment operations.35 (.21) 2.70 (0.98)
_________________________________________________________________
_____________Less distributions:
Dividends from net investment income(.01) (.01) (.02) (.02)
_________________________________________________________________
_____________Net asset value, end of period$11.80 $11.46 $11.68 $9.00
_________________________________________________________________
_____________
Ratios/supplemental data
1995*** 1994 1993 1992**
Net assets, end of period (in millions)$1,016$763 $299 $57
_________________________________________________________________
_____________Ratio of expenses to average
daily net assets .68%# .69% .75% .98%#
Ratio of net income to average
daily net assets 0.24%# 0.14% 0.28% 0.21%#
Portfolio turnover rate (excluding
short-term securities) 49% 59% 55% 28%
_________________________________________________________________
_____________Total Return### 3.05%+(1.77)% 29.98%(9.76)%##
_________________________________________________________________
_____________*For a share outstanding throughout the period.
Rounded to the nearest cent.
**Commencement of operations. Period from Jan. 13, 1992 to Aug.
31, 1992.
***Six months ended Feb. 28, 1995 (Unaudited).
#Adjusted to an annual basis.
##For the period from Jan. 13, 1992 to Aug. 31, 1992, the
annualized total return is (14.98)%.
###Total return does not reflect payment of the expenses that
apply to the variable accounts or any annuity charges.
+For the fiscal period ended Feb. 28, 1995, the annualized total
return is 6.10%.
</TABLE>
PAGE
Special Income Fund
Financial highlights
<TABLE>
<CAPTION>
Fiscal year ended August 31,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period$11.05$12.08 $11.26$10.72 $10.10 $11.11
____________________________________________________________________
______________Income (loss) from investment operations:
Net investment income .42 .84 .85 .90 .97 .99
Net gains (losses) on securities (both
realized and unrealized) (.15) (.99) .82 .54 .62 (1.01)
____________________________________________________________________
______________Total from investment operations.27 (.15) 1.67 1.44 1.59 (.02)
____________________________________________________________________
______________Less distributions:
Dividends from net investment income(.42) (.85) (.85) (.90) (.97) (.99)
Distributions from realized gains (.01) (.02) - - - -
Excess distributions from net investment
income - (.01) - - - -
____________________________________________________________________
______________Total distributions (.43) (.88) (.85) (.90) (.97) (.99)
____________________________________________________________________
______________Net asset value, end of period$10.89$11.05$12.08 $11.26 $10.72
$10.10
____________________________________________________________________
______________Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
Net assets, end of period
(in millions) $1,474 $1,559 $1,551 $1,136 $800 $641
Ratio of expenses to
average daily net assets .66%# .67% .69% .71% .70% .71%
Ratio of net income to
average daily net assets 7.92%# 7.20% 7.41% 8.22% 9.31% 9.42%
Portfolio turnover rate
(excluding short-term
securities) 22% 57% 77% 92% 97% 118%
____________________________________________________________________
______________Total Return*** 2.44%##(1.30)% 15.47% 13.96% 16.54% (0.12)%
____________________________________________________________________
______________*For a share outstanding thourghout the period.
Rounded to the nearest cent.
**Six months ended Feb. 28, 1995 (Unaudited).
***Total return does not reflect payment of the expenses that apply
to the variable accounts or any annuity charges.
#Adjusted to an annual basis.
##For the fiscal period ended Feb. 28, 1995, the annualized total
return is 4.88%.
</TABLE>
PAGE
Moneyshare Fund
Financial highlights
<TABLE>
<CAPTION>
Fiscal year ended August 31,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period$1.00 $1.00 $1.00$1.00 $1.00 $1.00
____________________________________________________________________
______________Income from investment operations:
Net investment income .02 .03 .03 .04 .07 .08
____________________________________________________________________
______________Total from investment
operations .02 .03 .03 .04 .07 .08
____________________________________________________________________
______________Less distributions:
Dividends from net investment
income (.02) (.03) (.03) (.04) (.07) (.08)
____________________________________________________________________
______________Net asset value, end of period$1.00 $1.00 $1.00 $1.00 $1.00 $1.00
____________________________________________________________________
______________
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
Net assets, end of period
(in millions) $194 $179 $180 $246 $285 $274
____________________________________________________________________
______________Ratio of expenses to average
daily net assets .56%# .57% .60% .60% .57% .62%
____________________________________________________________________
______________Ratio of net income to average
daily net assets 4.92%# 3.12% 2.67% 3.93% 6.55% 7.85%
____________________________________________________________________
______________Total Return***2.10%##3.15% 2.73% 3.98% 6.77% 8.18%
____________________________________________________________________
______________*For a share outstanding throughout the year. Rounded
to the nearest cent.
**Six months ended Feb. 28, 1995 (Unaudited).
***Total return does not reflect payment of the expenses that apply
to the variable accounts or any annuity charges.
#Adjusted to an annual basis.
##For the fiscal period ended Feb. 28, 1995, the annualiezed total
return is 4.20%.
</TABLE>
PAGE
Managed Fund
Financial highlights
<TABLE>
<CAPTION>
Fiscal year ended August 31,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period$13.65$14.32 $13.08$12.59 $10.93 $12.08
____________________________________________________________________
______________Income (loss) from investment operations:
Net investment income .20 .47 .49 .56 .58 .65
Net gains(losses) on securities (both
realized and unrealized) (.23) (.26) 1.60 .95 2.11(.67)
____________________________________________________________________
__________________________
Total from investment operations (.03) .21 2.09 1.51 2.69 (.02)
____________________________________________________________________
______________Less distributions:
Dividends from net investment income(.20) (.47) (.49) (.56) (.58) (.65)
Distributions from net realized gains -- (.41) (.36) (.46) (.45) (.48)
____________________________________________________________________
______________Total distributions (.20) (.88) (.85) (1.02) (1.03) (1.13)
____________________________________________________________________
______________Net asset value, end of period$13.42$13.65$14.32$13.08 $12.59
$10.93
____________________________________________________________________
______________
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
Net assets, end of period (in millions)$2,621$2,499$1,858$1,169 $810 $545
Ratio of expenses to average daily net
assets .69%# .68% .69% .71% .70% .71%
Ratio of net income to average
daily net assets 3.07%# 3.46% 3.70% 4.35% 4.86% 5.42%
Portfolio turnover rate (excluding
short-term securities) 174% 79% 58% 50% 52% 37%
____________________________________________________________________
______________Total Return***(0.22)%##1.51%16.33%12.14% 25.24% (0.23)%
____________________________________________________________________
______________*For a share outstanding throughout the period.
Rounded to the nearest cent.
**Six months ended Feb. 28, 1995 (Unaudited).
***Total return does not reflect payment of the expenses that apply
to the variable accounts or any annuity charges.
#Adjusted to an annual basis.
##For the fiscal period ended Feb. 28, 1995, the annualized total
return is (0.44)%.
</TABLE>
PAGE
Investments in securities
Retirement Annuity Mutual Funds (Percentages represent value of
February 28, 1995 (Unaudited)investments compared to total net assets)
Capital Resource Fund
<TABLE>
<CAPTION>
Investment in securities of unaffiliated issuers
Bonds (3.3%)
Issuer Principal Value(a)
Amount
_________________________________________________________________
_____________<S> <C> <C>
Airlines(0.3%)
AMR
6.125% 2024 $12,000,000 $10,890,000
_________________________________________________________________
_____________Building Materials (0.3%)
Cemex
4.25% Cv 1997 15,000,000(e) 9,450,000
_________________________________________________________________
_____________Foreign (0.7%)
Henderson Land (U.S. Dollar)
4.00% Cv 1996 12,000,000(e) 11,640,000
Rogers Communication (U.S. Dollar)
Zero Coupon Cv with attached put
5.49% 2013 30,000,000(g) 9,900,000
Total 21,540,000
________________________________________________________________________________________
_________
Health care services (0.5%)
Service Corp Int'l
6.50% Cv 2001 12,000,000 16,440,000
_________________________________________________________________
_____________Insurance (0.3%)
USF&G
Zero Coupon Cv
4.55% 2009 21,200,000(g) 10,176,000
_________________________________________________________________
_____________Media (0.4%)
Comcast
1.125% Cv 2007 29,800,000 12,367,000
_________________________________________________________________
_____________Retail (0.8%)
Waban
6.50% Cv 2002 25,000,000 24,125,000
_________________________________________________________________
_____________Total bonds
(Cost: $115,310,712) 104,988,000
________________________________________________________________________________________
_________
</TABLE>
<TABLE>
<CAPTION>
Common & preferred stocks & warrants (88.7%)
Issuer Shares Value(a)
_________________________________________________________________
_____________<S> <C> <C>
Aerospace & defense (0.4%)
Sundstrand 300,000 13,725,000
_________________________________________________________________
_____________Airlines (0.6%)
Southwest Airlines 1,075,000 18,946,875
_________________________________________________________________
_____________Automotive & related (0.9%)
Goodyear 810,000 29,868,750
_________________________________________________________________
_____________Banks and savings & loans (1.8%)
BankAmerica 700,000 33,687,500
First Chicago 350,000 17,718,750
First Chicago
$5.50 Cv Pfd 465,000 6,858,750
Total 58,265,000
_________________________________________________________________
_____________Beverages & tobacco (5.9%)
American Brands 275,000 10,278,125
PepsiCo 300,000 11,737,500
Philip Morris 1,070,000 65,002,500
RJR Nabisco 7,400,000 41,625,000
UST 2,100,000 62,475,000
Total 191,118,125
_________________________________________________________________
_____________Building materials (0.7%)
Martin Marietta 400,000 7,450,000
Sherwin Williams 425,000 14,290,625
Total 21,740,625
________________________________________________________________________________________
____
Chemicals (0.6%)
Sigma-Aldrich 525,000 19,162,500
_________________________________________________________________
_____________Computers & office equipment (7.4%)
Automatic Data Processing 570,000 35,055,000
BISYS Group 490,000(b) 9,432,500
Banyan Systems 730,900(b) 12,516,663
Ceridian 325,000 10,237,500
Ceridian
$2.75 Cv Pfd 238,500 17,410,500
Cisco Systems 300,000(b) 10,125,000
Compaq Computer 550,000(b) 18,975,000
Fiserv 500,000(b) 13,125,000
Hewlett Packard 180,000 20,700,000
Pitney Bowes 1,350,000 47,925,000
Policy Mgmt Systems 450,000(b) 20,306,250
Reynolds & Reynolds 680,000 18,785,000
Transaction System 200,000(b) 3,575,000
Total 238,168,413
_________________________________________________________________
_____________Electronics (0.9%)
Premier Industrial 483,300 11,538,788
Vishay Intertechnology 300,000(b) 16,200,000
Total 27,738,788
_________________________________________________________________
_____________Energy (1.0%)
Exxon 310,000 19,840,000
Newfield Exploration 200,000(b) 3,900,000
Snyder Oil
$6.00 Cv Pfd 350,000 7,000,000
Total 30,740,000
_________________________________________________________________
_____________Financial services (10.7%)
Block (H&R) 910,000 34,238,750
Copart 325,000(b) 6,134,375
Countrywide Credit 875,000 14,218,750
Envoy 245,000(b) 5,635,000
Federal National Mortgage 200,000 15,425,000
Insurance Auto Auctions 175,000 (b) 5,512,500
MGIC Investment 875,000 33,359,375
Mercury Finance 780,000 12,480,000
Mutual Risk Management 350,000 10,150,000
Northern Trust 1,600,000 54,400,000
RFS Hotel Investors 400,000 5,800,000
Salomon Elk
$7.25 Cv Pfd 100,000 3,937,500
SBH/AM
$3.185 Cv Pfd 210,000 12,022,500
State Street Boston 2,050,000 65,343,750
SLMA Non/Vtg 163,900 6,043,813
Student Loan 300,000 7,125,000
Travelers 1,400,000 54,425,000
Total 346,251,313
_________________________________________________________________
_____________Food (2.5%)
Pioneer Hi-Bred 700,000 23,625,000
Quaker Oats 400,000 13,050,000
Ralcorp Holdings 300,000(b) 7,575,000
Sysco 500,000 14,187,500
Tootsie Roll 319,059 21,376,953
Total 79,814,453
_________________________________________________________________
_____________Foreign (7.1%)
Archer Resource 400,000(b) 2,726,960
Arjo 800,000 (b,e) 13,963,200
Arnoldo Mondadori 450,000 2,877,300
Astra 800,000(b) 20,181,600
Banca Pop Bergano 300,000 3,815,100
Celsius Industries 1,100,000(b) 24,373,800
Childrens Discovery 200,000 3,075,000
Danka Business Systems 300,000 6,750,000
Femsa Coke 830,000(b,f) 12,450,000
Fulcrum 325,000 6,296,875
G-Casa Autrey 665,000 6,816,250
Henkel 45,000 17,413,335
Loewen Group 200,000 5,575,000
Loewen Group Private 100,000(b) 2,771,800
News Corp Ltd ADR 520,000 9,425,000
News Corp Ltd ADR Pfd 260,000(b) 4,192,500
Petroleum Geo Serv 375,000 8,414,062
Renaissance Energy 125,000(b) 2,489,237
Repsol S. A. 200,000 5,725,000
Rogers Communications 1,050,000(b) 13,092,030
Royal Dutch Petroleum 110,000 12,333,750
Tamro Yhtymae 1,500,000(b) 7,677,000
Telefonos de Mexico 575,000 15,884,375
Vaisala 94,500 3,575,124
Vodafone Group ADR 300,000 9,150,000
YPF 400,000 7,600,000
Total 228,644,298
_________________________________________________________________
_____________Health care (6.8%)
Biogen 320,000(b) 13,200,000
Boston Scientific 400,000 (b,f) 8,650,000
Bristol-Myers Squibb 285,000 17,670,000
Centocor 525,000(b) 10,007,812
Cima Labs 250,000(b) 1,296,875
Genentech 250,000(b) 12,562,500
Guidant 270,000(b) 4,860,000
Lilly (Eli) 108,000 7,236,000
Medtronic 279,000 16,740,000
Merck 415,000 17,585,625
Mylan Labs 480,000 15,000,000
Pfizer 190,000 15,722,500
Stryker 1,090,000 47,415,000
Systemed 260,000(b) 1,917,500
Ventritex 275,000(b) 5,775,000
Warner Lambert 300,000 22,912,500
Xoma Warrants 4,142(b) 217
Total 218,551,529
_________________________________________________________________
_____________Health care services (5.4%)
Beverly Enterprises 750,000(b) 9,750,000
Cardinal Health 880,000 43,560,000
Caremark Int'l 1,000,000 17,500,000
Charter Medical 150,000(b) 2,756,250
Community Psych Centers 1,600,000(b) 18,600,000
Coram Healthcare 275,000(b) 6,462,500
Gulf South Medical 310,000(b) 12,245,000
Health Management Systems 160,000(b) 5,800,000
Hillhaven 200,000(b) 4,825,000
Omnicare 151,000 7,342,375
Regency Health 750,000(b) 10,687,500
Service Corp Int'l 470,000 13,218,750
Stewart Enterprises 800,000 21,400,000
Total 174,147,375
_________________________________________________________________
_____________Household products (1.5%)
Dial 300,000 7,500,000
Newell 1,000,000 23,875,000
Playtex Products 300,000(b) 2,287,500
Tambrands 375,000 16,218,750
Total 49,881,250
_________________________________________________________________
_____________Industrial machines & services (4.8%)
Browning Ferris 315,000 9,804,375
Caterpillar 140,000 7,227,500
Deere & Company 410,000 31,416,250
General Signal 650,000 23,318,750
Giddings & Lewis 800,000 13,600,000
Greenfields 200,000 5,150,000
Illinois Tool Works 325,000 14,584,375
Nordson 240,000 13,380,000
Stewart & Stevenson 450,000 14,850,000
WMX Technologies 875,000 23,078,125
Total 156,409,375
_________________________________________________________________
_____________Industrial transportation (2.6%)
Arnold Industries 400,000 7,700,000
Burlington Northern 200,000 11,200,000
Conrail 200,000 11,050,000
Union Pacific 1,060,000 55,385,000
Total 85,335,000
_________________________________________________________________
_____________Insurance (4.0%)
ACE Limited 1,075,000 26,606,250
Aetna Life & Casualty 100,000 5,375,000
American Int'l 100,000 10,375,000
Horace Mann Educators 409,400 9,825,600
Unum 1,800,000 76,500,000
Total 128,681,850
_________________________________________________________________
_____________Leisure time & entertainment (1.2%)
Carnival 300,000 7,125,000
Circus Circus 250,000(b) 6,562,500
Gaylord Entertainment 300,000 7,875,000
Int'l Game Technology 600,000 8,400,000
Marvel Entertainment 600,000(b) 9,375,000
Total 39,337,500
_________________________________________________________________
_____________Media (8.2%)
ACS 197,500(b) 2,370,000
CBS 452,400 29,179,800
Comcast 1,500,000(b) 24,000,000
Cox Communications 300,000(b) 5,137,500
Information Resource 675,000(b) 10,209,375
Jacor Communications 336,500(b) 4,668,938
Merrill Corporation 345,000 5,778,750
Reader's Digest 1,285,000 59,110,000
Scholastic 275,000(b) 13,887,500
Tele-Communications 'A' 2,700,000(b) 61,425,000
Time Warner 300,000 11,587,500
Turner Broadcasting'B' 1,230,000 23,216,250
Viacom 'B' 300,000(b) 13,425,000
Viacom Wts C 350,000(b) 1,400,000
Total 265,395,613
_________________________________________________________________
_____________Metals (0.3%)
Bethlehem Steel
$3.50 Cv Pfd 200,000(e) 9,000,000
_________________________________________________________________
_____________Multi-Industry (2.5%)
Franklin Quest 200,000(b) 7,125,000
General Electric 725,000(b) 39,784,375
Interim Services 325,000(b) 9,059,375
Minnesota Mining & Manufacturing 430,000 23,542,500
Total 79,511,250
_________________________________________________________________
_____________Natural gas (0.8%)
Enron 275,000 9,075,000
Tenneco 350,000 15,925,000
Total 25,000,000
_________________________________________________________________
_____________Paper & packaging (1.7%)
Crown Cork & Seal 650,000(b) 27,706,250
Kimberly Clark 390,000 20,280,000
Stone Container 300,000(b) 7,012,500
Total 54,998,750
_________________________________________________________________
_____________Restaurants & lodging (0.8%)
McDonalds 800,000 26,600,000
_________________________________________________________________
_____________Retail (5.0%)
Damark Int'l 315,000(b) 2,480,625
Department 56 250,000(b) 9,687,500
Gap 335,000 10,887,500
K-Mart 400,000 5,100,000
Perrigo 200,000(b) 2,775,000
Quality Food Centers 260,000 6,240,000
Rite Aid 250,000 6,187,500
Viking Office Products 200,000(b) 6,000,000
Walgreens 1,000,000 47,250,000
Wal-Mart Stores 2,700,000 64,125,000
Total 160,733,125
_________________________________________________________________
_____________Telecommunication equipment & services (1.3%)
DSC Communications 400,000(b) 14,400,000
NEXTEL Communications 2,400,000(b) 29,100,000
Total 43,500,000
_________________________________________________________________
_____________Utilities - telephone (1.3%)
MFS Communications 300,000(b) 10,425,000
U.S. West 815,000 31,581,250
Total 42,006,250
_________________________________________________________________
_____________Total common & preferred stocks & warrants
(Cost: $2,677,115,181) $2,863,273,007
_________________________________________________________________
_____________</TABLE>
<TABLE>
<CAPTION>
Short-term securities (2.1%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_________________________________________________________________
_____________<S> <C> <C> <C>
U.S. government agency (0.2%)
FHLMC Disc Nts
03-13-95 5.86% $ 6,000,000 $5,988,280
FNMA Disc Nts
04-03-95 5.89 2,000,000 1,989,202
Total 7,977,482
_________________________________________________________________
_____________Commercial paper (1.9%)
AIG Funding
03-01-95 6.07 3,000,000 3.000.000
American General
03-20-95 5.99 5,100,000 5,083,958
Amgen
03-17-95 6.00 2,400,000 2,393,632
Aon
03-20-95 6.00 700,000 697,794
Boc Group
03-13-95 6.02 4,000,000 3,992,000
Paribas
03-13-95 5.98 3,000,000 2,994,050
Bell South Telephone
03-03-95 5.85 4,100,000 4.098.674
CAFCO
03-09-95 5.98 600,000 599,207
04-06-95 6.00 8,200,000 8,151,046
Chevron Transport
03-24-95 6.06 5,900,000(c) 5,877,383
Ciesco
03-06-95 5.84 6,500,000 6,494,764
Fleet Funding
03-21-95 6.05 6,600,000(c) 6,578,000
Metlife Funding
03-15-95 5.99 4,200,000 4,190,249
Motorola
03-17-95 5.99 800,000 797,877
St. Paul Companies
03-16-95 6.00 3,300,000(c) 3,291,791
Sysco
04-12-95 6.08 2,200,000 2,183,598
Total 60,424,023
_________________________________________________________________
_____________Total short-term securities
(Cost: $68,402,456) $ 68,401,505
_________________________________________________________________
_____________Total investments in securities of unaffiliated
issuers
(Cost: $2,860,828,349) $3,036,662,512
________________________________________________________________________________________
_____
</TABLE>
<TABLE>
<CAPTION>
Investments in securities of affiliated issuers (d)
Common stocks (5.9%)
Issuer Shares Value(a)
<S> <C> <C>
Career Horizon 450,000(b) $8,662,500
Ciber 375,000(b) 5,531,250
Concord Holdings 600,000 (b) 8,850,000
Donn-Kenny 695,000(b) 11,554,375
Flair 360,000 6,570,000
HCC Insurance 600,000(b) 16,995,000
Health Management 500,000(b) 12,562,500
Nature's Bounty 1,705,000(b) 11,402,188
North American Mortgage 1,025,000 16,656,250
Norton McNaughton 475,000(b) 8,906,250
ParcPlace Systems 465,000(b) 8,370,000
PMT Services 425,000(b) 5,365,625
Saber Software 435,000(b) 4,458,750
3DO 1,200,000(b) 10,950,000
VMARK Software 325,000(b) 4,956,250
Wall Data 750,000(b) 34,875,000
Webco Metals 600,000(b) 5,400,000
Xpedite 475,000(b) 9,025,000
Total 191,090,938
_________________________________________________________________
_____________Total investments in securities of affiliated
issuers
(Cost: $189,328,360) $191,090,938
_________________________________________________________________
_____________Total investments in securities
(Cost: $3,050,156,709)(h) $3,227,753,450
_________________________________________________________________
_____________Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to
the financial statements.
(b)Presently non-income producing. For long-term debt
securities, items identified are in default as to payment of
interest or principal.
(c)Commercial paper sold within terms of a private placement
memorandum,, exempt from registration under section 4(2) of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or other "accredited
investors." These securities have been determined to be liquid under guidelines
established by the board of directors.
(d)Investments representing 5 percent or more of the outstanding
voting securities of the issuer.
(e)Represents securities sold under Rule 144A which are exempt
from registration under the Securities Act of 1933, as amended.
These securities have been determined to be liquid under
guidelines established by the board of directors.
(f)Security is partially or fully on loan. See Note 6 to the
financial statements.
(g) For zero coupon bonds, the interest rate disclosed
represents the annualized effective yield on the date of
acquisition.
(h)At Feb. 28, 1995, the cost of securities for federal income
tax purposes was approximately $3,050,157,000 and the approximate
aggregate gross unrealized appreciation and depreciation based on
that cost was:
Unrealized appreciation . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . $331,416,000
Unrealized depreciation . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . (153,819,000)
_________________________________________________________________
_____________Net unrealized appreciation . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. $177,597,000
_________________________________________________________________
_____________</TABLE>
PAGE
Investments in securities
Retirement Annuity Mutual Funds (Percentages represent value of
February 28, 1995 (Unaudited) investments compared to total net assets)
International Equity Fund
<TABLE>
<CAPTION>
Investments in securities of unaffiliated issuers
_________________________________________________________________
_____________Bonds (0.5%)
Issuer Principal Value(a)
Amount
_________________________________________________________________
_____________<S> <C> <C>
Renong Cv
2.50% 2005 $6,000,000(b) $5,670,000
(Cost: $6,006,762)
_________________________________________________________________
_____________</TABLE>
<TABLE>
<CAPTION>
Common & preferred stocks & warrants (87.0%)
Issuer Shares Value(a)
_________________________________________________________________
_____________<S> <C> <C>
Argentina (1.0%)
Multi-industry (0.7%)
Perez Companc 'B' Shares 2,583,000 $ 8,495,487
_________________________________________________________________
_____________________________
Telecommunications (0.3%)
Telefonica de Argentina 180,000(e) 3,352,500
_________________________________________________________________
_____________Australia (6.2%)
Banking (1.3%)
Westpac Banking 4,185,000 15,451,020
_________________________________________________________________
_____________Energy (0.7%)
Broken Hill Proprietary 582,475 8,043,980
Broken Hill Proprietary
Warrants 06-29-95 1,306,000(c) 487,007
___________
Total 8,530,987
_________________________________________________________________
_____________Forest products (0.6%)
Amcor 925,000 6,673,875
_________________________________________________________________
_____________Industrial transportation (1.0%)
Brambles 1,183,616 11,224,231
_________________________________________________________________
_____________Merchandising (1.0%)
Woolworth 5,230,991 11,701,727
_________________________________________________________________
____________Metals (1.6%)
CRA 736,800 9,403,042
Pasminco 9,132,600(c) 9,433,976
____________
Total 18,837,018
_________________________________________________________________
_____________Canada (1.3%)
Electronics (0.5%)
Northern Telecom 177,300 6,050,362
_________________________________________________________________
_____________Energy (0.4%)
Rennaissance Energy 255,300(c) 5,084,019
_________________________________________________________________
_____________Telecommunications (0.4%)
BCE Mobile 150,300(c) 5,042,355
_________________________________________________
_____________________________
Chile (0.6%)
Telecommunications
Telefonos de Chile 116,000 7,076,000
_________________________________________________________________
_____________Denmark (1.0%)
Telecommunications
TeleDanmark 'B' Shares 220,000 11,228,580
_________________________________________________________________
_____________France (6.1%)
Banking (0.5%)
Credit Commercial de France 142,563 5,837,385
_________________________________________________________________
_____________Building materials (0.5%)
Lafarge-Coppee (Bearer) 92,614 5,977,122
_________________________________________________________________
_____________Electronics (0.2%)
Alcatel Alsthom Electricite 30,000 2,415,810
_________________________________________________________________
_____________Energy (2.1%)
Societe Nationale Elf Aquitaine 259,820 18,657,934
Total Petroleum 'B' 114,750(e) 6,347,511
___________
Total 25,005,445
_________________________________________________________________
_____________Financial services (0.5%)
Cie de Suez 131,900 5,794,235
_________________________________________________________________
_____________Food (0.5%)
Danone 42,500 6,132,155
_________________________________________________________________
_____________Insurance (0.5%)
Union des Assurances Federales 65,000 6,400,225
_________________________________________________________________
_____________Multi-industry (1.3%)
Lyonnaise des Eaux Dumez 185,400 15,761,039
_________________________________________________________________
_____________Germany (1.5%)
Chemicals (0.4%)
Henkel Pfd Shares 13,250(c) 5,127,260
_________________________________________________________________
_____________Merchandising (0.5%)
Karstadt 14,040 5,664,157
_________________________________________________________________
_____________Multi-industry (0.6%)
Preussag 21,000(e) 6,498,093
_________________________________________________________________
_____________Hong Kong (2.7%)
Merchandising (0.6%)
Dairy Farm Int'l 5,500,000(e) 6,611,000
_________________________________________________________________
_____________Multi-industry (1.5%)
Hutchison Whampoa 2,260,000 9,586,920
Swire Pacific 'A' 1,200,000 8,419,200
___________
Total 18,006,120
_________________________________________________________________
_____________
Real estate (0.3%)
Great Eagle Holdings 8,689,000 3,649,380
_________________________________________________________________
_____________Shipping (0.3%)
Shun Tak Holdings 6,050,000 3,593,700
_________________________________________________________________
_____________Italy (0.7%)
Telecommunications
Telecom Italia 3,379,500 8,147,975
_________________________________________________________________
_____________Japan (28.2%)
Appliances & durables (0.7%)
Sony 172,100 7,484,457
_________________________________________________________________
_____________Banking (2.5%)
Fuji Bank 499,000 10,746,963
Sanwa Bank 361,000 7,064,770
Sumitomo Trust & Banking 978,000 11,341,866
____________
Total 29,153,599
_________________________________________________________________
_____________Building materials (1.1%)
Nihon Cement 1,884,000 13,108,872
_________________________________________________________________
_____________Chemicals (0.9%)
Sekisui Chemical 1,014,000 10,079,160
_________________________________________________________________
_____________Construction ( 2.0%)
JGC 703,000(e) 11,355,559
Daiwa Kosho Lease 750,000 6,763,500
Sho-Bond 180,000 5,554,080
___________
Total 23,673,139
_________________________________________________________________
_____________Data processing (0.1%)
Fujitsu Warrants 06-12-98 11,000(c) 659,648
_________________________________________________________________
_____________Electrical (1.5%)
Hitachi 1,022,000 8,941,478
Toshiba 1,409,000 8,913,334
___________
Total 17,854,812
_________________________________________________________________
_____________Electronic component (3.7%)
Kyocera 185,000 11,934,165
Rohm 319,000 11,659,769
TDK 314,000 12,972,910
Yokogawa Electric Corp 790,000 7,222,970
___________
Total 43,789,814
_________________________________________________________________
_____________Financial services (0.9%)
Daiwa Securities 261,000 2,918,763
Nomura Securities 471,000 8,144,532
___________
Total 11,063,295
_________________________________________________________________
_____________Forest products (0.5%)
Nippon Paper Industries 1,000,000(c) 6,316,000
_________________________________________________________________
_____________Industrial component (2.9%)
Nippon Denso 575,000 10,180,950
NTN 1,890,000 11,330,550
Sumitomo Electric Industries 1,083,000(e) 12,335,370
___________
Total 33,846,870
_________________________________________________________________
_____________Insurance (1.2%)
Tokio Marine & Fire 1,381,000 14,442,498
_________________________________________________________________
_____________Machinery & engineering (2.4%)
Fanuc 239,000 9,750,483
Fuji Machine Mfg Co Ltd. 216,000 5,636,088
Ishikawajima-Harima 1,015,000 3,898,615
Mitsubishi Heavy Industries 1,340,000 8,463,440
___________
Total 27,748,626
_________________________________________________________________
_____________Merchandising (1.2%)
Amway Japan 52,000 1,588,392
Ito-Yokado 132,000 6,013,920
Marui 472,000 6,744,408
___________
Total 14,346,720
_________________________________________________________________
_____________Metals - steel (1.4%)
Hitachi Metals 660,000 6,546,540
Nippon Steel 2,806,000 9,818,194
___________
Total 16,364,734
_________________________________________________________________
_____________Miscellaneous materials & commodities (1.6%)
Asahi Glass 720,000(e) 7,976,880
NGK Spark Plug 989,000(e) 10,957,131
___________
Total 18,934,011
_________________________________________________________________
_____________Real estate (0.9%)
Mitsui Fudosan 1,050,000 10,752,000
_________________________________________________________________
_____________Recreation & goods (0.4%)
Sega Enterprises 110,400(e) 5,155,570
_________________________________________________________________
_____________Telecommunications (0.9%)
DDI 1,011 7,505,948
Tokyo Broadcasting 200,000 2,712,800
___________
Total 10,218,748
_________________________________________________________________
_____________Transportation (0.5%)
Nippon Express 719,000 6,401,976
_________________________________________________________________
_____________Wholesale, int'l trade (0.9%)
Itochu 1,848,000 10,886,568
_________________________________________________________________
_____________Malaysia (3.1%)
Banking (0.3%)
Malayan Banking 603,500 3,995,170
_________________________________________________________________
_____________Construction (0.6%)
United Engineers 1,370,000 7,621,310
_________________________________________________________________
_____________Leisure (0.4%)
Resorts World 809,000 4,373,454
_________________________________________________________________
_____________Multi-industry (0.8%)
Sime Darby 3,720,000 9,032,160
_________________________________________________________________
_____________Telecommunications (0.6%)
Telekom Malaysia 992,000 6,955,904
_________________________________________________________________
_____________Utilities (0.4%)
Tenaga Nasional 1,261,000 5,038,956
_________________________________________________________________
_____________Mexico (0.7%)
Building materials (0.3%)
Cemex ADR Series 'B' 654,675 3,273,375
Cemex ADR Series 'A' 75,000(b) 324,375
___________
Total 3,597,750
_________________________________________________________________
_____________Construction (0.3%)
Empresas Ica Sociedad Controladora 553,500(e) 3,044,250
Grupo Mexicano de Desarollo Series 'B' 144,500 397,375
__________
Total 3,441,625
_________________________________________________________________
_____________Financial services (0.1%)
Banorte Series 'C' 828,000 665,132
_________________________________________________________________
_____________Merchandising (0.1%)
Benavides 'B' Shares 586,900 577,568
_________________________________________________________________
_____________Netherlands (4.2%)
Broadcast publishing (1.2%)
Elsevier 1,400,000 13,714,400
_________________________________________________________________
_____________Chemicals (1.1%)
Akzo Nobel N.V. 84,200 9,872,197
EVC 72,980 (c) 3,248,413
___________
Total 13,120,610
_________________________________________________________________
_____________Financial services (0.3%)
International Nederlanden Groep 71,750 3,518,692
_________________________________________________________________
_____________Household products (1.3%)
Unilever NV 127,000 15,551,277
_________________________________________________________________
_____________Machinery, engineering (0.3%)
Stork VMF 116,035 3,132,945
_________________________________________________________________
_____________New Zealand (1.6%)
Forest products
Carter Holt Harvey 4,570,000 10,076,850
Fletcher Challenge 3,263,100 8,125,119
___________
Total 18,201,969
_________________________________________________________________
_____________Norway (0.6%)
Energy (0.4%)
Saga Petroleum 'A' 343,860 4,449,205
_________________________________________________________________
_____________Shipping (0.2%)
First Olsen Tankers 408,000(c) 2,844,984
_________________________________________________________________
_____________Philippines (0.5%)
Telecommunications
Philippine Long Distance Telephone 99,900(e) 5,906,587
_________________________________________________________________
_____________Singapore (5.1%)
Automobiles (0.8%)
Cycle & Carriage 1,306,000 9,913,846
_________________________________________________________________
_____________Banking (1.8%)
Development Bank of Singapore (Fgn Rgd) 1,114,500 10,767,184
Overseas Union Bank (Fgn Rgd) 1,714,350 9,996,375
___________
Total 20,763,559
_________________________________________________________________
_____________Beverages & tobacco (0.8%)
Fraser & Neave 916,600(e) 9,678,379
_________________________________________________________________
_____________Machinery & engineering (1.7%)
Keppel 1,467,000 11,743,335
Sembawang Shipyard 1,243,000 8,749,477
___________
Total 20,492,812
_________________________________________________________________
_____________Spain (3.8%)
Banking (1.0%)
Banco de Galicia 298,655(e) 2,650,563
Banco Popular 70,000 8,898,820
___________
Total 11,549,383
_________________________________________________________________
_____________Energy (1.0%)
Repsol 414,000 11,756,772
_________________________________________________________________
_____________Telecommunications (1.8%)
Telefonica de Espana 1,669,800 20,834,095
_________________________________________________________________
_____________Sweden (1.7%)
Electronics (1.0%)
Asea 'B' Free Shares 94,500 7,113,204
Ericsson (LM) 'B' Free 80,520 4,457,829
____________
Total 11,571,033
_________________________________________________________________
_____________Forest Products (0.2%)
SCA 'B' Free 104,000(c) 1,843,608
_________________________________________________________________
_____________Health care (0.5%)
Astra 'A' Shares 222,000 5,600,394
_________________________________________________________________
_____________Switzerland (0.7%)
Banking
Swiss Bank Corp. (Rgd) 55,000(c) 7,888,925
_________________________________________________________________
_____________Thailand (0.5%)
Banking
Siam Commercial Bank (Frn Rgd) 616,000 5,334,560
_________________________________________________________________
_____________United Kingdom (15.2%)
Airline (1.1%)
British Airways 2,133,700 13,171,330
_________________________________________________________________
_____________Appliances & durables (0.7%)
Thorn Emi 496,800 8,186,767
_________________________________________________________________
_____________Banking (1.3%)
HSBC Holdings 241,100 2,532,273
National Westminster 1,648,950 12,555,105
___________
Total 15,087,378
_________________________________________________________________
_____________Beverages & tobacco (1.0%)
Guinness 1,780,000(c) 11,707,060
_________________________________________________________________
_____________Building materials (0.5%)
Tarmac 3,200,000 5,344,000
_________________________________________________________________
_____________Business & public service (0.4%)
WPP 2,668,100 4,602,472
_________________________________________________________________
_____________Data processing (1.2%)
Rank Organisation 2,450,000 14,310,450
_________________________________________________________________
_____________Energy (0.5%)
Shell Transports & Trading 569,600 6,333,952
_________________________________________________________________
_____________Health & personal care ( 1.0%)
SmithKline Beecham 'A' 1,479,400 11,790,818
_________________________________________________________________
_____________Machinery & engineering (1.6%)
Siebe 2,250,000 18,697,500
_________________________________________________________________
_____________Merchandising (2.5%)
Argyll Group 1,277,300 5,448,962
Next 5,881,000 24,341,459
____________
Total 29,790,421
_________________________________________________________________
_____________Metals (0.9%)
RTZ 907,000 10,574,713
_________________________________________________________________
_____________Multi-industry (2.5%)
Ampolex 3,953,821(e) 9,781,753
BTR 2,000,000 9,924,000
Framlington Maghreb Units 50,000(c) 2,500,000
Hanson 1,906,600(c) 7,046,794Hajhh
___________
Total 29,252,547
_________________________________________________________________
_____________Total common & preferred stocks & warrants
(Cost: $1,098,586,746) $1,023,466,851
_________________________________________________________________
____________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (12.5%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_________________________________________________________________
_____________<S> <C> <C> <C>
U.S. government agency (0.3%)
FHLMC Disc Nts
03-15-95 5.88% 3,600,000 $ 3,591,810
_________________________________________________________________
_____________Commercial paper (12.2%)
American General
03-03-95 6.05 4,200,000(d) 4,198,595
Amgen
03-10-95 5.88 6,300,000 6,290,818
Aon
03-24-95 5.95 1,600,000 1,593,938
AT& T
03-21-95 6.04 3,100,000 3,089,667
Bell South Capital Funding
03-13-95 6.04 3,800,000 3,790,765
Bell South Telecom
04-10-95 5.98 5,300,000 5,265,020
Cargill
03-06-95 6.06 2,000,000 1,997,751
Ciesco
03-06-95 5.84 3,500,000 3,497,181
Commericial Credit
03-16-95 6.03 4,000,000 3,990,000
Commerzbank
04-10-95 6.05 6,300,000 6,255,402
Corporate Asset Funding
03-09-95 5.98 4,000,000 3,994,711
CPC Int'l
03-27-95 6.06 4,300,000(d) 4,279,266
Fleet Funding
03-07-95 5.79 7,500,000(d) 7,492,812
Ford Motor Credit
03-22-95 6.04 2,200,000 2,191,625
General Electric Capital
03-14-95 5.91 5,000,000 4,989,419
Glaxo
04-26-95 6.00 3,000,000 2,972,000
Goldman Sachs
03-09-95 6.00 7,300,000 7,290,315
Household Finance
03-22-95 6.04 5,300,000 5,280,532
Lincoln National
03-01-95 6.04 6,300,000(d) 6,300,000
03-06-95 6.06 1,100,000(d) 1,099,079
03-28-95 6.00 1,700,000(d) 1,692,388
National Australia Funding
03-17-95 5.97 3,700,000 3,690,216
National Detroit Canada
04-03-95 6.00 2,400,000 2,386,866
Paccar Financial
03-29-95 5.97 2,400,000 2,388,893
Penney (JC)
03-17-95 6.01 3,800,000 3,789,900
PepsiCo
03-08-95 5.97 5,800,000 5,793,290
03-20-95 6.01 4,600,000 4,585,482
Pfizer
03-23-95 5.97 3,600,000 3,586,910
St. Paul Companies
03-06-95 5.97 3,000,000 2,997,521
03-13-95 5.96 6,700,000 6,686,756
03-21-95 5.98 3,800,000 3,787,439
Sandoz
03-03-95 6.05 4,700,000 4,698,426
SBT Funding
03-06-95 6.05 1,800,000(d) 1,798,495
Toyota Motor
03-01-95 6.04 900,000 900,000
04-11-95 6.06 6,000,000 5,959,000
U.S. West
03-07-95 6.00 3,300,000 3,296,717
_____________
Total 143,897,195
________________________________________________________________________________________
________
Total short-term securities
(Cost: $147,497,697) $ 147,489,005
_________________________________________________________________
_____________Total investments in securities of unaffiliated
issuers
(Cost: $1,252,091,204) $1,176,625,856
________________________________________
______________________________________</TABLE>
<TABLE>
<CAPTION>
Investments in securities of affiliated issuers (f)
Common stock (0.9%)
Issuer Shares Value(a)
_________________________________________________________________
_____________<S> <C> <C>
Switzerland(0.9%)
Health & personal care
Sandoz (Registered) 18,800(c) 10,816,843
_________________________________________________________________
_____________Total investments in securities of affiliated
issuers
(Cost: $10,156,203) $ 10,816,843
_________________________________________________________________
_____________Total investments in securities
(Cost: $1,262,247,407)(g) $1,187,442,699
_________________________________________________________________
_____________Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to
the financial statements.
(b) Represents securities sold under Rule 144A, which are exempt
from registration under the Securities Act of 1933, as amended.
These securities have been determined to be liquid under
guidelines established by the board of directors.
(c) Presently non-income producing.
(d) Commercial paper sold within terms of a private placement
memorandum, exempt from registration under section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other "accredited
investors." These securities have been determined to be liquid under guidelines
established by the board of directors.
(e) Security is partially or fully on loan. See Note 6 to the
financial statements.
(f) Investments representing 5 percent or more of the
outstanding voting securities of the issuer.
(g) At Feb. 28, 1995, the cost of securities for federal income
tax purposes was approximately $1,262,247,000 and the approximate
aggregate gross unrealized appreciation and depreciation based on
that cost was:
Unrealized appciation . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . $ 45,797,000
Unrealized depreciation . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . (120,601,000)
_________________________________________________________________
_____________Net unrealized depreciation . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . $ (74,804,000)
_________________________________________________________________
_____________</TABLE>
PAGE
Investments in securities
Retirement Annuity Mutual Funds (Percentages represent value of
February 28, 1995 (Unaudited)investments compared to total net assets)
Aggressive Growth Fund
<TABLE>
<CAPTION>
_________________________________________________________________
_____________Bond (0.1 %)
Issuer Principal Value(a)
Amount
_________________________________________________________________
_____________<S> <C> <C>
Hospitality Franchise System
4.50% Cv 1999 $1,300,000 $ 1,293,500
_________________________________________________________________
_____________(Cost: $1,300,000)
</TABLE
_________________________________________________________________
_____________
</TABLE>
<TABLE>
<CAPTION>
Common & preferred stocks (79.6%)
Issuer Shares Value(a)
_________________________________________________________________
_____________<S> <C> <C>
Banks and savings & loans (2.3%)
B&T Financial 78,000 2,486,250
Citicorp 110,000 4,950,000
First Fidelity Bancorporation 90,000 4,545,000
Mercantile Bancorporation 190,000 7,006,250
Roosevelt Financial Chesterfield MO 250,000 3,984,375
Total 22,971,875
_________________________________________________________________
_____________Building materials (0.7%)
Granite Construction 75,000 1,476,563
Tyco Intl 100,000 5,212,500
Total 6,689,063
_________________________________________________________________
_____________Chemicals (0.2%)
IMC Global 37,200 1,739,100
_________________________________________________________________
_____________Communications equipment (2.9%)
ADC Telecommunications 111,300(b) 6,204,975
CommNet Cellular 110,000(b) 2,530,000
EIS Intl 250,000(b) 3,875,000
Stratacom 70,000(b) 2,590,000
Tellabs 270,000(b) 14,040,000
Total 29,239,975
_________________________________________________________________
_____________Computers & office equipment (16.8%)
Alantec 87,500(b) 3,040,625
American Management Systems 375,000(b) 7,664,063
Avid Technology 110,000(b) 3,685,000
Broadway & Seymour 170,000(b) 3,060,000
Cabletron Systems 190,000(b) 7,528,750
Ceridian 55,300(b) 1,741,950
Cisco Systems 485,000(b) 16,368,750
Compuware 180,000(b) 6,615,000
Digital Link 100,000(b) 2,350,000
Informix 260,000(b) 9,815,000
Intuit 78,000(b) 5,167,500
Komag 220,000(b) 5,555,000
Network General 210,000(b) 5,591,250
Network Peripherals 175,000(b) 4,068,750
Oracle Systems 660,000(b) 20,790,000
Parametric Technology 590,000(b) 22,567,500
Sanmina 125,000(b) 3,625,000
Sierra On-line 133,300(b) 5,165,375
Silicon Graphics 290,000(b) 10,041,250
Sterling Software 175,000(b) 6,321,875
Sybase Software 270,000(b) 11,002,500
Synopsys 120,000(b) 5,670,000
3Com 60,000(b) 3,127,500
Total 170,562,638
_________________________________________________________________
_____________Electronics (12.9%)
Applied Materials 200,000(b) 9,225,000
Atmel 150,000(b) 5,118,750
Credence Systems 201,000(b) 4,874,250
Cypress Semiconductor 140,000(b) 3,972,500
Harman Intl 61,200 2,570,400
Intel 180,000 14,355,000
Intergated Development Tech 230,000 8,768,750
KLA Instruments 50,000(b) 2,900,000
LAM Research 200,000(b) 8,000,000
Lattice Semiconductor 140,000(b) 3,692,500
Linear Technology 190,000 10,355,000
Maxim Integrated Products 160,000(b) 5,260,000
Medar 200,000(b) 1,775,000
Microchip Technologies 270,000(b) 6,817,500
Micron Technology 210,000 13,020,000
Molex 160,000 5,400,000
Sensormatic Electronics 300,000 8,512,500
Standard Microsystems 190,000(b) 5,035,000
Teradyne 55,400(b) 2,015,175
Xilinx 70,000(b) 4,681,250
Zilog 125,000(b) 4,203,125
Total 130,551,700
_________________________________________________________________
_____________Energy (--%)
HS Resources 24,100(b) 367,525
_________________________________________________________________
_____________Energy equipment and services (0.2%)
Corrpro 140,000(b) 2,345,000
_________________________________________________________________
_____________Financial services (1.8%)
ADVANTA B 190,000 5,985,000
First Financial Management 40,000 2,765,000
Paychex 235,000 9,635,000
Total 18,385,000
_________________________________________________________________
_____________Foreign (3.8%)
Autoliv 130,000(b) 4,786,210
Danka Business Systems 307,300 6,914,250
First Pacific 5,479,477 3,539,742
Grupo Sidek ADR 343,000(b) 1,071,875
Nokia Pref Free 155,000(b) 11,663,750
Renaissance Energy 220,000(b) 4,381,058
SAP Preferred 7,500 6,200,685
Total 38,557,570
_________________________________________________________________
_____________Health care (8.3%)
Amgen 80,000(b) 5,520,000
Anesta 90,000(b) 500,625
Centocor 460,000(b) 8,768,750
Cordis 75,000(b) 4,875,000
Forest Labs 181,100(b) 9,190,825
Genentech 160,000(b) 8,040,000
Heart Technology 295,000(b) 5,494,375
I-Stat 170,000(b) 4,080,000
IDEXX Laboratories 450,000(b) 17,100,000
Interpore 158,100(b) 1,185,750
PLC Systems 247,500(b) 959,062
Scherer R.P. 115,000(b) 5,275,625
STERIS 215,000(b) 7,121,875
Target Therapeutics 157,000(b) 5,848,250
Total 83,960,137
_________________________________________________________________
_____________Health care services (16.5%)
Advocat 250,000(b) 3,250,000
American Medical Resp 210,000(b) 5,748,750
Beverly Enterprises 274,900(b) 3,573,700
Cardinal Health 315,000 15,592,500
Cerner 120,000(b) 5,565,000
Coram Healthcare 184,500(b) 4,335,750
Coventry 200,000(b) 5,400,000
Express Scripts 168,400(b) 5,725,600
HBO & Company 500,000 19,250,000
HEALTHSOUTH Rehabilitation 273,600(b) 11,012,400
Healthsource 210,000(b) 9,135,000
Horizon Healthcare 200,000(b) 4,875,000
Humana 200,000(b) 4,750,000
Medaphis 110,000(b) 6,215,000
Oxford Health Plans 55,000(b) 5,005,000
PacifiCare Health Systems 70,000(b) 4,917,500
PhyCor 370,000(b) 11,377,500
Sun Healthcare 175,000(b) 4,484,375
Surgical Care Affiliates 465,000 9,765,000
United Healthcare 100,000 4,300,000
U S Healthcare 345,000 14,835,000
Value Health 230,000(b) 8,567,500
Total 167,680,575
_________________________________________________________________
_____________Industrial equipment & services (1.9%)
Energy Biosystems 88,400(b) 419,900
Energy Biosystems 35,000(b,c) 1,417,500
Sanifill 226,700(b) 5,355,787
Thermo Electron 200,000(b) 9,475,000
United Waste Systems 120,000(b) 3,150,000
Total 19,818,187
_________________________________________________________________
_____________Industrial transportation (1.3%)
American Freightways 400,000(b) 9,550,000
Heartland Express 120,000(b) 3,525,000
Total 13,075,000
_________________________________________________________________
_____________Leisure time & entertainment (0.5%)
Primadonna Resorts 200,000(b) 4,650,000
_________________________________________________________________
_____________Media (1.6%)
Catalina Marketing 95,400(b) 4,936,950
Infinity Broadcasting, Class A 120,000(b) 4,230,000
Information Resources 200,000(b) 3,025,000
Westcott Communications 330,000(b) 3,960,000
Total 16,151,950
_________________________________________________________________
_____________Metals (0.5 %)
Nucor 100,000(b) 5,612,500
_________________________________________________________________
_____________Multi-industry conglomorates (0.6%)
Manpower 220,000 6,435,000
_________________________________________________________________
_____________Restaurants & lodging (1.5%)
Hospitality Franchis 200,000(b) 5,675,000
Outback Steakhouse 355,000(b) 9,274,375
Total 14,949,375
_________________________________________________________________
_____________Retail (4.7%)
Barnes & Noble 140,000(b) 4,130,000
CUC Int'l 255,000(b) 8,988,750
Gymboree 170,000(b) 4,080,000
Office Depot 200,000(b) 4,675,000
Pep Boys-Manny Moe & Jack 230,000 7,532,500
PETsMART 306,100(b) 10,636,975
Viking Office Products 250,000(b) 7,500,000
Total 47,543,225
_________________________________________________________________
_____________Utilities - gas (0.6%)
Enron 200,000 6,600,000
_________________________________________________________________
_____________Total common & preferred stocks
(Cost: $681,135,086) $ 807,885,395
_________________________________________________________________
_____________</TABLE>
<TABLE>
<CAPTION>
Short-term securities (22%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_________________________________________________________________
_____________<S> <C> <C> <C>
U.S. government agency (0.5%)
FNMA Disc Nts
03-09-95 5.88% $5,000,000 $ 4,993,489
_________________________________________________________________
_____________Commercial paper (21.5%)
American General
03-29-95 5.97 4,000,000(d) 3,981,520
Anheuser-Busch
03-01-95 5.95 2,400,000 2,400,000
Aon
03-15-95 6.00 3,400,000 3,392,093
03-20-95 6.01 4,000,000 3,987,376
Avco
03-03-95 6.05 3,600,000 3,598,796
BOC Group
03-13-95 6.02 3,800,000 3,792,400
03-21-95 6.00 3,500,000 3,488,392
Becton Dickinson
03-07-95 5.97 6,200,000 6,193,852
03-21-95 6.06 4,400,000(d) 4,385,260
03-28-95 5.97 8,200,000 8,163,408
Bell Atlantic Network
03-02-95 5.99 1,200,000 1,199,801
Bellsouth Telecommunications
03-03-95 5.85 4,000,000 3,998,707
03-03-95 5.89 3,100,000 3,098,993
Beneficial
03-30-95 5.98 1,000,000 995,207
Ciesco
04-05-95 5.96 4,700,000 4,672,949
04-11-95 6.06 5,000,000 4,962,909
Commercial Credit
03-03-95 6.06 2,400,000 2,399,196
Commerzbank U.S. Finance
04-06-95 6.03 5,600,000 5,566,456
Consolidated Rail
04-28-95 6.04 4,500,000(d) 4,456,645
Kredietbank Finance
03-16-95 6.02 4,200,000 4,189,518
Lilly (Eli)
03-01-95 6.02 3,500,000(d) 3,500,000
Lincoln National
03-01-95 6.04 4,700,000(d) 4,700,000
03-28-95 6.00 5,300,000(d) 5,276,269
Merrill Lynch
04-26-95 6.12 3,500,000 3,465,361
Metlife Funding
03-22-95 5.98 4,400,000 4,384,728
Morgan Guaranty
03-02-95 6.04 5,500,000 5,499,080
National Australia Funding
03-17-95 5.97 3,300,000 3,291,273
Nestle Capital
03-16-95 6.00 5,000,000 4,987,542
Norfolk Southern
04-12-95 6.06 4,000,000(d) 3,970,277
Paribas Finance
03-07-95 5.98 6,500,000 6,487,108
Penney J.C. Funding
04-10-95 6.06 4,400,000 4,368,801
PepsiCo
03-08-95 5.97 6,000,000 5,993,058
Pfizer
03-23-95 5.97 14,000,000(d) 13,949,094
03-24-95 5.95 10,100,000(d) 10,061,735
Pitney Bowes
03-16-95 5.99 2,600,000 2,593,543
Reed Elsevier
04-11-95 6.08 5,400,000(d) 5,362,977
St. Paul Companies
03-06-95 5.97 3,500,000(d)3,497,108
03-13-95 5.98 9,200,000(d) 9,181,753
04-03-95 5.98 5,200,000(d) 5,171,638
SBT Funding
03-06-95 6.05 3,100,000(d) 3,097,408
Sysco
04-12-95 6.08 3,200,000(d) 3,176,142
USAA Capital
03-06-95 5.89 5,200,000 5,195,775
03-08-95 5.79 2,600,000 2,597,093
04-03-95 5.96 5,600,000 5,569,559
Unilever Capital
03-20-95 5.98 5,000,000(d) 4,984,299
UBS Finance
03-28-95 5.94 3,500,000 3,484,460
U S West Communications
03-13-95 5.98 5,900,000 5,888,298
Total 218,657,857
_________________________________________________________________
_____________Total short-term securities
(Cost: $223,660,943) $ 223,651,346
_________________________________________________________________
_____________Total investments in securities
(Cost: $906,096,029)(e) $1,032,830,241
_________________________________________________________________
_____________Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to
the financial statements.
(b) Presently non-income producing.
(c)Represents securities sold under Rule 144A, which are exempt
from registration under the Securities Act of 1933, as amended.
These securities have been determined to be liquid under
guidelines established by the board of directors.
(d) Commerical paper sold within terms of a private placement
memorandum, exempt from registration under section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other "accredited
investors." These securities have been determined to be liquid under guidelines
established by the board of directors.
(e)At Feb. 28, 1995, the cost of securities for federal income
tax purposes was approximately $906,096,000 and the approximate
aggregate gross unrealized appreciation and depreciation based
on that cost was:
Unrealized appreciation. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . $143,884,000
Unrealized depreciation. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . (17,150,000)
_________________________________________________________________
_____________Net unrealized appreciation. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $126,734,000
_________________________________________________________________
_____________</TABLE>
PAGE
Investments in securities
Retirement Annuity Mutual Funds (Percentages represent value of
February 28, 1995 (Unaudited)investments compared to total net assets)
Special Income Fund
<TABLE>
<CAPTION>
Bonds (91.4%)
Issuer Coupon Maturity Principal Value(a)
rate year amount
_________________________________________________________________
_____________<S> <C> <C> <C> <C>
U.S. government obligations (12.3%)
Resolution Financial Trust Company Strips
Zero Coupon 8.03 2015 70,000,000(k) 15,126,293
U.S. Treasury Bonds 7.25 2016 12,700,000 12,272,263
7.50 2016 20,000,000 19,827,598
8.125 2019 50,000,000(m) 52,891,495
U.S. Treasury Notes 7.50 2001 50,000,000(h) 50,935,995
7.875 1996 30,000,000 30,370,497
Total 181,424,141
_________________________________________________________________
_____________Mortgage backed securities (20.5%)
FHLMC 8.00 2024 5,000,000 4,960,937
9.00 2007 16,235,443 16,859,493
Collateralized Mtge Obligation3.24 2023 6,101,857 2,446,463
Collateralized Mtge Obligation7.00 2022 10,455,000 9,099,300
Collateralized Mtge Obligation7.00 2022 12,940,000 11,193,229
Collateralized Mtge Obligation8.50 2022 10,000,000 10,091,100
Inverse Floater 1.255 2023 5,200,000(g) 2,288,000
FNMA 6.00 2024 9,935,847 8,790,120
6.50 2023 72,325,537 66,223,069
8.00 2021 937,396 931,831
8.00 2022 6,272,360 6,235,117
8.50 2007 16,642,367 17,151,624
8.50 2023 13,141,266 13,330,171
9.00 2005 34,307,034 35,636,432
9.00 2024 13,590,927 14,036,879
9.00 2024 13,813,426 14,266,679
9.00 2024 14,653,721 15,134,546
Collateralized Mtge Obligation1.55 2021 10,977,637 4,981,103
Inverse Floater
Collateralized Mtge Obligation1.103 2023 450,569(g) 105,884
1.938 2007 9,187,584(g) 212,463
GNMA 6.00 2023 19,892,274 17,343,576
6.00 2024 24,192,682 21,092,994
Adjustable Rate Mortgage 6.00 2024 9,823,336(i) 9,786,499
Total 302,197,509
_________________________________________________________________
_____________Aerospace & defense (0.3%)
AEC Acquisition 10.00 2003 3,700,000 3,787,875
_________________________________________________________________
_____________Airlines (1.5%)
AMR 9.50 2001 9,000,000 9,416,250
See accompanying notes to investments in securities.
Delta Air Lines
Sr Deb 10.375 2011 12,500,000 13,062,500
Total 22,478,750
_________________________________________________________________
_____________Automotive & related (2.5%)
Ford Motor Credit 7.50 2003 5,000,000 4,893,750
GMAC 6.375 1996 20,000,000 19,800,000
5.95 1998 10,000,000 9,387,500
Mascotech 4.50 2003 3,500,000 2,450,000
Total 36,531,250
__________________________________________________________________________________________
Banks and savings & loans (1.2%)
BankAmerica 7.50 2002 7,500,000 7,312,500
Fleet Norstar Fin'l 9.00 2001 5,000,000 5,218,750
9.90 2001 5,000,000 5,425,000
Total 17,956,250
_________________________________________________________________
_____________Beverages & tobacco (0.3%)
Royal Crown
Sr Nts 9.75 2000 5,000,000 4,700,000
_________________________________________________________________
_____________Building materials (1.3%)
Bacnotan Construction Industry
Cv 5.50 2004 1,750,000(d) 1,557,500
Centex 9.05 1996 5,000,000 5,093,750
Masco 9.00 2001 5,000,000 5,318,750
Nortek 9.875 2004 2,500,000 2,287,500
Southdown
Sub Nts 14.00 2001 3,000,000 3,397,500
Toll
Cv 4.75 2004 1,750,000 1,417,500
Total 19,072,500
_________________________________________________________________
_____________Chemicals (0.8%)
General Chemical 9.25 2003 5,000,000 4,825,000
G-I Holdings
Zero Coupon
Sub Nts 11.69 1998 4,000,000(k) 2,590,000
Huntsman 11.00 2004 3,500,000 3,718,750
Total 11,133,750
_________________________________________________________________
_____________Computers & office equipment (0.3%)
Conner Peripherals
Cv 6.50 2002 3,000,000 2,250,000
Convex Computer
Cv 6.00 2012 4,000,000 2,440,000
Total 4,690,000
_________________________________________________________________
_____________Electronics (0.2%)
Berg Electronics 11.375 2003 3,000,000(d) 3,090,000
_________________________________________________________________
_____________Energy (2.8%)
Atlantic Richfield 8.75 2032 10,000,000 10,537,500
Cross Timbers Oil
Cv Sub Nts 5.25 2003 500,000 397,500
Occidental Petroleum 10.98 2000 5,000,000 5,668,750
with attached put 9.25 2019 8,725,000 9,542,969
Oryx Energy 10.00 2001 5,000,000 5,031,250
PDV America 7.875 2003 7,500,000 5,850,000
Triton Energy
Zero Coupon Cv 9.68 1996 5,000,000(l) 4,025,000
Total 41,052,969
_________________________________________________________________
_____________Energy equipment & services (0.2%)
McDermott 9.375 2002 3,000,000 3,247,500
_________________________________________________________________
_____________Financial services (2.0%)
Corporate Property Investors 7.05 2003 5,000,000(d) 4,706,250
Developers Div Realty 7.00 1999 1,500,000 1,410,000
First Union 8.875 2003 4,000,000 3,390,000
GPA Delaware 8.75 1998 3,000,000 2,355,000
Household Finance
Sr Sub Nts 9.55 2000 6,500,000 6,987,500
Liberty Property Trust
Cv 8.00 2001 1,250,000 1,281,250
Malon Realty
Cv 9.50 2004 2,750,000 2,392,500
Salomon 8.91 1998 4,800,000 4,836,000
Taubman Realty
Cv 7.00 2003 2,000,000 1,760,000
Total 29,118,500
_________________________________________________________________
_____________Food (0.2%)
Grand Met Place
Cv 6.50 2000 1,175,000(d) 1,222,000
Specialty Foods 11.25 2003 1,000,000(d) 957,500
Zero Coupon Cv 12.96 1999 1,000,000(d,l) 475,000
Total 2,654,500
_________________________________________________________________
_____________Foreign (15.5%)(c)
Aegon
(Euro Dollar) Cv 4.75 2004 1,175,000 1,257,250
Agnico Eagle Mines
(U.S. Dollar) Cv 3.50 2004 2,000,000 1,370,000
Alcan Aluminum
(U.S. Dollar) 8.875 2022 6,750,000 6,918,750
Avenor
(U.S. Dollar) 9.375 2004 2,000,000 1,965,000
Banca Italy N.Y.
(U.S. Dollar) 8.25 2007 5,000,000 4,962,500
BNCE
(U.S. Dollar) 7.25 2004 3,000,000 1,740,000
Carter Holt Harvey
(U.S. Dollar) 8.875 2004 5,000,000 5,237,500
City of Helsinki
Sr Nts 7.95 2006 2,000,000(e) 1,854,400
8.40 2007 1,800,000(e) 1,741,842
8.45 2006 1,200,000(e) 1,154,868
8.70 2006 1,600,000(e) 1,567,584
9.20 2006 1,500,000(e) 1,501,875
Doman Industries
(U.S. Dollar) 8.75 2004 5,000,000 4,587,500
Ford Capital BV
(U.S. Dollar) 9.875 2002 5,000,000 5,593,750
Gov't of Canada
(Canadian Dollar) 7.752 2001 17,000,000 13,442,240
Gov't of Italy
(Italian Lira) 8.50 20048,300,000,000 3,818,000
Gov't of Poland
(Euro Dollar) Stepup Nts 3.25 2014 20,000,000 8,000,000
Groupe Videotron
(U.S. Dollar) 10.625 2005 2,000,000 2,060,000
Guang Dong Enterprise
(U.S. Dollar) 8.75 2003 7,500,000(d) 6,881,250
Gulf Canada Resources
(U.S. Dollar) 9.00 1999 5,000,000 4,818,750
Hanson Industries
(British Pound) Cv 9.50 2006 800,000 1,298,872
Hydro Quebec
(U.S. Dollar) 8.50 2029 20,000,000 19,650,000
Korea Electric Power
(U.S. Dollar) 6.375 2003 3,100,000 2,724,125
MacMillan Bloedel
(U.S. Dollar) 8.50 2004 7,500,000 7,621,875
Mexican U.S. Series C
(U.S. Dollar) 6.938 2019 4,000,000(b,g)2,480,000
Ogden
(Euro Dollar) Cv 6.00 2002 2,200,000 1,815,000
Petroleos Mexicanos
(U.S. Dollar) 8.625 2023 5,000,000 3,125,000
Philip Long Distance Telephone
(U.S. Dollar) 10.625 2004 2,500,000 2,425,000
Province of Quebec
(U.S. Dollar) 11.00 2015 2,500,000 2,859,375
PT Indah Kiat Pulp & Paper
(U.S. Dollar) 11.875 2002 5,000,000 4,925,000
Pueblo Extra Int'l
(U.S. Dollar) Sr Nts 9.50 2003 4,000,000 3,325,000
Qantas Air
(U.S. Dollar) 7.50 2003 7,500,000(d) 7,050,000
Republic of Argentina
(U.S. Dollar) 4.25 2023 24,000,000 9,510,000
Republic of Brazil
(U.S. Dollar) 4.00 2014 21,430,398 8,706,099
(Euro Dollar) 4.00 2024 13,500,000 5,214,375
(Euro Dollar) 4.00 2024 10,000,000 3,862,500
(U.S. Dollar) 5.187 2024 7,500,000(g) 4,443,750
(U.S. Dollar) 6.75 2012 21,000,000 10,500,000
Republic of Columbia
(U.S. Dollar) 7.25 2004 5,300,000 4,438,750
Republic of Italy
(U.S. Dollar) 6.875 2023 7,500,000 6,084,375
Roche Holding
(U.S. Dollar) 2.75 2000 5,000,000 4,003,100
Rogers Cable Systems
(Canadian Dollar) 9.65 2014 2,700,000 1,579,117
Rogers Cantel Mobile
(U.S. Dollar) 10.75 2001 3,000,000 3,090,000
Tarkett
(U.S. Dollar) 9.00 2002 4,000,000(d) 3,780,000
Telecom Argentina
(U.S. Dollar) 8.375 2000 5,000,000(d) 3,650,000
UEM
(U.S. Dollar) with attached put Cv 2.00 19991,5
00,000 (d) 1,496,250
United Kingdom Treasury
(British Pound) 12.292 2003 2,650,000 4,019,361
United Mexican State
(U.S. Dollar) 8.50 2002 9,000,000 5,962,500
WMC Finance USA
(U.S. Dollar) 7.25 2013 10,000,000 8,800,000
Total 228,912,483
_________________________________________________________________
_____________Furniture & appliances (0.6%)
Black & Decker 6.625 2000 10,000,000 9,325,000
_________________________________________________________________
_____________Health care (0.3%)
Amerisource Distribution
Pay-in-kind 11.25 2005 3,780,050 4,006,853
_________________________________________________________________
_____________Health care services (1.6%)
American Medical Int'l 11.00 2000 1,600,000 1,704,000
Charter Medical
Sr Sub Nt 11.25 2004 5,000,000(d) 5,275,000
Foundation Health 7.75 2003 3,250,000 3,132,188
Healthtrust 8.75 2005 6,500,000 6,565,000
Hillhaven 10.125 2001 3,000,000 3,060,000
Nat'l Medical Center
Sr Sub Nt 10.125 2005 3,800,000 3,885,500
Total 23,621,688
_________________________________________________________________
_____________Household products (0.4%)
Mary Kay Cosmetics
Sr Sub Nts 12.75 2000 2,000,000(e) 2,120,000
Revlon Consumer Products 10.50 2003 2,500,000 2,340,625
Sweetheart Cup
Sr Sub Nt 9.625 2000 2,000,000 1,905,000
Total 6,365,625
_________________________________________________________________
_____________Industrial machines & services (0.8%)
ADT Operations 9.25 2003 3,500,000 3,360,000
Clark Equipment 9.75 2001 5,000,000 5,400,000
IDEX 9.75 2002 3,000,000 3,030,000
Total 11,790,000
_________________________________________________________________
_____________Industrial transportation (0.3%)
CSX 9.23 1998 5,000,000 5,250,000
_________________________________________________________________
_____________Insurance (0.8%)
Americo Life 9.25 2005 2,500,000 2,193,750
NAC Re
Cv 5.25 2002 2,000,000(e) 1,700,000
Nationwide Mutual 7.50 2024 4,000,000(d) 3,385,000
New England Mutual
Credit Sensitive Nts 7.875 2024 5,000,000(d) 4,243,750
Total 11,522,500
_________________________________________________________________
_____________Leisure time & entertainment (1.3%)
Bally's Grand
1st Mtge 10.375 2003 3,500,000 3,290,000
Bally's Park Place Funding
1st Mtge 9.25 2004 3,500,000 3,115,000
GNF Bally 10.625 2003 3,500,000 2,642,500
Kloster Cruise
Sr Secured Nts 13.00 2003 3,000,000 2,340,000
MGM Grand Hotel Finance 12.00 2002 3,000,000 3,303,750
Showboat 9.25 2008 3,000,000 2,617,500
Trump Taj Mahal
Pay-in-kind 11.35 1999 3,556,938 2,525,426
Total 19,834,176
_________________________________________________________________
_____________Media (3.9%)
Ackerley Communications
Sr Secured Nts 10.75 2003 2,500,000(d) 2,500,000
Adelphia Communications 12.50 2002 3,000,000 2,895,000
Cablevision Systems 10.75 2004 2,000,000 2,092,500
Continental Cablevision
Sr Deb 8.875 2005 5,000,000 4,750,000
News America Holdings 7.50 2000 7,000,000 6,851,250
8.875 2023 7,000,000 6,982,500
12.00 2001 5,000,000 5,656,250
Tele-Communications 9.25 2023 7,500,000 7,359,375
Time Warner Entertainment 8.375 2033 7,500,000 6,675,000
Zero Coupon Cv with attached put 6.75 199510,
000,000 (l) 9,650,000
Zero Coupon Cv 6.59 2012 4,750,000(k) 1,496,250
Total 56,908,125
_________________________________________________________________
_____________Metals (0.5%)
Magma Copper 12.00 2001 5,000,000 5,400,000
Rep Engineered Steel 9.875 2001 2,000,000 1,870,000
Total 7,270,000
_________________________________________________________________
_____________Multi-industry (0.9%)
Fairchild Industries 12.25 1999 2,000,000 1,947,500
Mark IV Industries 8.75 2003 3,500,000 3,342,500
Tally
Zero Coupon Cv 12.20 1998 1,750,000(l) 980,000
Tally Mfg & Technology 10.75 2003 2,500,000 2,287,500
Westinghouse Electric 8.375 2002 5,000,000 4,912,500
Total 13,470,000
_________________________________________________________________
_____________Natural gas (1.2%)
Tenneco Credit 9.625 2001 10,000,000 10,850,000
Transco Energy 9.875 2020 6,000,000 6,742,500
Total 17,592,500
_________________________________________________________________
_____________Paper & packaging (4.0%)
Bowater 9.50 2012 10,000,000 10,687,500
Chesapeake 9.875 2003 5,000,000 5,537,500
Container Corp America 9.75 2003 3,000,000 2,932,500
Sr Nts 10.75 2002 2,500,000 2,556,250
Crown Cork & Seal 8.00 2023 5,000,000 4,762,500
Federal Paperboard 10.00 2011 6,000,000 6,697,500
Owens Illinois 11.00 2003 5,000,000 5,368,750
Plastic Container 10.75 2001 2,000,000 2,012,500
Pope & Talbot 8.375 2013 4,000,000 3,800,000
Scotia Pacific Holding 7.95 2015 6,926,804 6,658,391
Silgan
Sr Sub Nt 11.75 2002 2,000,000 2,057,500
Zero Coupon Cv 13.19 1995 2,000,000(l) 1,760,000
Stone Container 9.875 2001 3,000,000 2,940,000
12.625 1998 1,500,000 1,586,250
Total 59,357,141
_________________________________________________________________
_____________Restaurants & lodging (0.5%)
Hammons (John Q) Hotel 8.875 2004 3,400,000 3,145,000
Host Marriott 10.875 2001 4,472,589 4,517,315
Total 7,662,315
_________________________________________________________________
_____________Retail (2.4%)
Eye Care Center 12.00 2003 3,000,000 2,441,250
Food 4 Less Supermarket
Zero Coupon Cv 15.25 1997 2,500,000(l) 1,937,500
Kroger 9.25 2005 3,000,000 3,030,000
Pathmark Stores 9.625 2003 5,000,000 4,700,000
Penney (J.C.) 9.05 2001 5,000,000 5,393,750
Penn Traffic 9.625 2005 3,000,000 2,827,500
Sr Nts 10.25 2002 3,000,000 3,007,500
Purity Supreme 11.75 1999 2,500,000 2,150,000
Revco 9.125 2000 2,000,000 2,025,000
Specialty Retailers 10.00 2000 2,600,000 2,398,500
Stop & Shop 9.75 2002 3,000,000 3,116,250
Super-Rite Foods
Sr Sub Nts 10.625 2002 2,000,000 2,032,500
Total 35,059,750
_________________________________________________________________
_____________Telecommunications equipment & services (0.8%)
Celcaribe
Unit 13.50 2004 1,450,000(d) 1,225,250
13.50 2004 1,700,000(d) 1,079,500
CenCall Communications
Zero Coupon Cv 10.09 1999 7,750,000(l) 3,012,812
Comcast Cellular
Zero Coupon with attached put 9.53 1995 4,000,000(k) 2,900,000
Panamsat
Sr Nts 9.75 2000 3,000,000 2,947,500
Total 11,165,062
_________________________________________________________________
_____________Textiles & apparel (1.0%)
Dominion Textiles 8.875 2003 4,000,000 3,770,000
VF 9.50 2001 5,000,000 5,431,250
WestPoint Stevens 9.00 2017 2,500,000 2,518,750
Sr Nts 8.75 2001 2,500,000 2,368,750
Total 14,088,750
_________________________________________________________________
_____________Utilities - electric (5.4%)
Arizona Public Service 8.75 2024 2,500,000 2,518,750
Boston Edison 9.875 2020 5,000,000 5,468,750
Cincinnati Gas & Electric 9.70 2019 5,000,000 5,356,250
Long Island Lighting 9.625 2024 9,000,000 8,617,500
Louisiana Power & Light
Sale Lease-Backed Obligation 10.30 2005 1,199,000 1,243,963
10.67 2017 2,500,000 2,659,375
Midland Cogeneration Venture 10.33 2002 2,127,213 2,111,259
10.33 2002 1,832,438(d) 1,818,694
11.75 2005 5,000,000 4,775,000
North Atlantic Energy 9.05 2002 5,000,000 4,856,250
Pacific Gas & Electric 7.25 2026 6,000,000 5,272,500
RGS Funding AEGCO
Sale Lease-Backed Obligation 9.82 2022 2,484,142 2,710,820
RGS Funding IME
Sale Lease-Backed Obligation 9.82 2022 2,485,469 2,712,269
Sithe Independent Funding 9.00 2013 7,500,000(d) 7,537,500
Texas-New Mexico Power 11.25 1997 5,000,000 5,100,000
1st Mtge 9.25 2000 3,500,000 3,508,750
Texas Utilities 9.70 2002 6,000,000 6,660,000
Texas Utilities Electric
1st Mtge 9.75 2021 6,350,000 6,889,750
Total 79,817,380
_________________________________________________________________
_____________Utilities - telephone (1.7%)
Bell Telephone Company of Pennsylvania 7.375 203310,
000,000 9,000,000
GTE 10.25 2020 7,000,000 7,857,500
New England Tel & Tel 9.00 2031 7,500,000 7,837,500
Total 24,695,000
_________________________________________________________________
_____________Miscellaneous (1.1%)
KinderKare Learning Center 10.375 2001 3,000,000 3,056,250
Nationwide CSN Trust 9.875 2025 6,500,000(d) 6,735,625
Standard Credit Card Trust 8.625 2002 6,590,000 6,759,890
Total 16,551,765
___________________________________________________________________________________________
_
Total bonds
(Cost: $1,383,539,056) $1,347,401,607
_________________________________________________________________
_____________</TABLE>
<TABLE>
<CAPTION>
Common & preferred stocks and warrants (1.6%)
_________________________________________________________________
_____________Issuer Shares Value(a)
_________________________________________________________________
_____________<S> <C> <C>
ABN Amro Holdings
6% Cv 41,100 1,451,940
Celcaribe 276,420(b,d) 359,346
Envirodyne Industries 90,890(b) 380,602
Eye Care Center
Warrants 3,000(b) 15,000
Federated Department Stores
Warrants Exp 02-15-96 6,000(b) 9,562
First Chicago
2.875% Cm Cv 42,500 2,188,750
First Nationwide Bank
11.50% 25,000 2,500,000
Great Buy Power 30,222(b) 241,776
Methanex 200,000(b) 2,100,000
Nat'l Health Investors
8.50% Cv 40,000 920,000
Service Corp
3.125% Cv 49,000 2,744,000
Pittston Minerals Group
6.25% Cv 25,000(d) 975,000
Property Trust America
1.75% Cv 52,500 1,194,375
Public Service of New Hampshire
10.60% Cm 182,000 4,644,640
Purity Supreme
Warrants Exp 08-06-97 8,664(b,e) 173
Sonoco Products
$2.25 Cv 49,600 2,591,600
Southdown
Warrants Exp 10-15-96 30,000(b,e) 90,000
Specialty Foods 15,000(b) 30,000
Triangle Wire Cable 84,444(b,e) 337,776
Total 22,774,540
_________________________________________________________________
_____________Total common & preferred stocks & warrants
(Cost: $28,080,584) $22,774,540
_________________________________________________________________
_____________</TABLE>
<TABLE>
<CAPTION>
Short-term securities (4.8%)
_________________________________________________________________
_____________Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_________________________________________________________________
_____________<S> <C> <C> <C>
U.S. government agency (0.2%)
FNMA Disc Nts
03-14-95 5.90 3,700,000 $ 3,692,143
_________________________________________________________________
_____________Commercial paper (4.6%)
AIG Funding
03-01-95 6.07 6,000,000 6,000,000
Amgen
03-17-95 6.00 2,900,000 2,892,305
Anheuser-Busch
03-01-95 5.95 2,700,000 2,700,000
Aon
03-02-95 5.99 7,000,000 6,998,839
03-15-95 6.00 900,000 897,907
03-20-95 6.01 5,000,000 4,984,219
03-27-95 5,95 2,600,000 2,588,865
Becton Dickinson Real Estate
03-21-95 6.06 4,500,000(f) 4,484,925
Bell South Telephone
03-03-95 5.89 3,500,000 3,498,863
Ciesco
04-05-95 5.96 6,000,000 5,965,467
Lincoln Nat'l
03-01-95 6.04 1,100,000(f) 1,100,000
Nat'l Bank of Detroit
03-27-95 5.96 4,000,000 3,982,869
Penney (J.C.) Funding
04-03-95 5.95 2,000,000 1,989,147
Pfizer
03-24-95 5.95 3,200,000(f) 3,187,876
Pitney Bowes
03-16-95 5.99 3,300,000 3,291,805
St. Paul Companies
03-13-95 5.98 2,800,000(f) 2,794,447
Sara Lee
03-06-95 6.04 5,100,000 5,095,757
Southwestern Bell Telephone
03-23-95 5.94 4,700,000 4,682,996
Total 67,136,287
_________________________________________________________________
_____________Letter of credit (--%)
First Chicago
03-21-95 6.01 600,000 598,007
_________________________________________________________________
_____________Total short-term securities
(Cost: $71,426,437) $71,426,437
_________________________________________________________________
_____________Total investments in securities
(Cost: $1,483,046,077)(n) $1,441,602,584
_________________________________________________________________
_____________
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to
the financial statements.
(b)Presently non-income producing. For long-term debt
securities, items identified are in default as to payment of
interest or principal.
(c)Foreign securities values are stated in U.S. dollars;
principal amounts are denominated in the currency indicated.
(d)Represents securities sold under Rule 144A, which are exempt
from registration under the Securities Act of 1933, as amended.
These securities have been determined to be liquid under
guidelines established by the board of directors.
(e) Identifies issues considered to be illiquid as to their
marketability (see Note 1 to the financial statements).
Information concerning such security holdings at Feb. 28 1995, is
as follows:
Security Acquisition Purchase
date cost
_________________________________________________________________
_____________City of Helsinki
7.95% 2006 02-07-95 $1,851,900
8.40% 2007 02-07-95 1,739,592
8.45% 2006 02-07-95 1,153,368
8.70% 2006 02-07-95 1,565,584
9.20% 2006 02-07-95 1,500,000
Mary Kay Cosmetics
12.75% 2000 12-05-90 2,000,000
NAC Re Cv
5.25% 2002 01-20-94 1,870,000
Purity Supreme Warrants
Exp 08-06-97 07-29-92 -
Southdown Warrants
Exp 10-15-96 10-30-91 90,000
Triangle Wire Cable
13.50% 2002 01-13-92 2,000,018
_________________________________________________________________
_____________
(f)Commercial paper sold within terms of a private placement
memorandum, exempt from registration under section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other "accredited
investors." These securities have been determined to be liquid under guidelines
established by the board of directors.
(g) Inverse floaters represent securities that pay interest at a
rate that increases (decreases) in the same magnitude as, or in a
multiple of, a decline (increase) in the LIBOR (London InterBank
Offering Rate) Index. Interest rate disclosed is the rate in
effect on Feb. 28, 1995.
(h) Security is partially or fully on loan. See Note 6 to the
financial statements.
(i) Adjustable rate mortgage; interest rate varies to reflect
current market conditions; shown is the effective rate on
Feb. 28, 1995.
(j) Interest rate varies to reflect current market conditions;
rate shown is the effective rate on Feb. 28, 1995.
(k) For zero coupon bonds, the interest rate disclosed represents
the annualized effective yield on the date of acquisition.
(l) For zero coupon bonds, the interest rate disclosed represents
the annualized effective yield from the date of acquisition to
interest reset date shown in the maturity year column.
(m) Partially pledged as initial deposit on the following open
interest rate futures purchase contracts (see Note 7 to the
financial statements).
Type of security Notional amount
_________________________________________________________________
____
U.S. Treasury Bonds March 1995 $20,000,000
(n) At Feb. 28, 1995, the cost of securities for federal income
tax purposes was approximately $1,483,046,000 and the approximate
aggregate gross unrealized appreciation and depreciation based on
that cost was:
Unrealized appreciation . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . $ 20,038,000
Unrealized depreciation . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . (61,482,000)
_________________________________________________________________
_____________
Net unrealized depreciation . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . $(41,444,000)
_________________________________________________________________
_____________
</TABLE>
PAGE
Investments in securities
Retirement Annuity Mutual Funds (Percentages represent value of
February 28, 1995 (Unaudited)investments compared to total net assets)
Moneyshare Fund
<TABLE>
<CAPTION>
_________________________________________________________________
_____________Short-term securities
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_________________________________________________________________
_____________<S> <C> <C> <C>
Commercial paper (74.5%)
Automotive & related (1.5%)
Ford Motor Credit
04-04-95 6.08 $3,000,000 $ 2,982,915
_________________________________________________________________
_____________Banks and savings & loans (9.6%)
BBV Finance Delaware
04-04-95 6.32 2,200,000 2,187,055
Commerzbank US Finance
04-03-95 6.00 6,000,000 5,967,165
Harris Trust Bank Notes
05-15-95 6.14 6,000,000 6,000,033
Kredietbank North America Finance
05-01-95 6.20 4,500,000 4,453,335
Total 18,607,588
_________________________________________________________________
_____________Beverages & tobacco (3.7%)
PepsiCo
03-01-95 5.97 600,000 600,000
03-08-95 5.97 6,600,000 6,592,364
Total 7,192,364
_________________________________________________________________
_____________Electronics (0.7%)
Siemens
03-06-95 6.26 1,400,000 1,398,800
_________________________________________________________________
_____________Energy (4.7%)
Chevron Transport
03-14-95 6.01 5,000,000(b) 4,989,203
Mobil Australia
03-07-95 5.99 4,100,000(b) 4,095,914
Total 9,085,117
_________________________________________________________________
_____________Financial services (25.0%)
Associates North America
03-13-95 6.02 2,000,000 1,996,013
03-29-95 5.97 1,800,000 1,791,670
AVCO Financial
05-09-95 6.16 1,900,000 1,877,895
Beneficial
03-02-95 6.06 4,700,000 4,699,213
01-23-96 6.11 1,000,000(d) 1,000,000
CIT Group Holdings
03-15-95 6.00 7,800,000 7,781,891
Fleet Funding
03-09-95 6.00 1,200,000(b) 1,198,405
04-28-95 6.06 5,100,000(b) 5,050,700
Merrill Lynch
03-14-95 5.95 2,100,000 2,095,526
Metlife Funding
03-22-95 5.98 3,900,000 3,886,464
Morgan Guaranty Canada
03-02-95 6.04 2,500,000 2,499,582
Nat'l Australia Funding
04-18-95 6.09 3,700,000 3,670,400
Nestle Capital
03-24-95 5.98 3,700,000 3,685,935
PACCAR Financial
05-23-95 6.09 3,200,000 3,155,733
USAA Capital
04-03-95 6.29 4,200,000 4,176,130
Total 48,565,557
_________________________________________________________________
_____________Food (3.0%)
Cargill
03-03-95 6.26 5,800,000 5,798,012
_________________________________________________________________
_____________Foreign (3.8%)
Glaxo Holdings
04-26-95 6.00 3,000,000 2,972,000
04-27-95 5.98 4,500,000 4,457,392
Total 7,429,392
_________________________________________________________________
_____________Health care (5.0%)
Amgen
03-17-95 6.05 5,800,000 5,784,533
Lilly (Eli)
03-20-95 6.04 3,900,000 3,887,691
Total 9,672,224
_________________________________________________________________
_____________Health care services (3.6%)
Sandoz
05-22-95 6.10 7,000,000 6,904,015
_________________________________________________________________
_____________Media (4.6%)
Reed Elsevier
05-16-95 6.13 9,000,000(b) 8,885,050
_________________________________________________________________
_____________Multi-industry (1.4%)
BOC Group
03-21-95 6.00 2,800,000 2,790,713
_________________________________________________________________
_____________Retail (2.0%)
Penney (J.C.)
03-10-95 6.04 4,000,000 3,994,020
_________________________________________________________________
_____________Transportation (4.2%)
Consolidated Rail
04-04-95 6.14 5,000,000(b) 4,971,289
Norfolk Southern
05-04-95 6.16 3,200,000(b) 3,165,469
Total 8,136,758
_________________________________________________________________
_____________Utilities - gas (1.7%)
Gateway Fuel
04-03-95 6.04 3,400,000 3,381,393
_________________________________________________________________
_____________Total commercial paper
(Cost: $144,823,918) $144,823,918
_________________________________________________________________
_____________Letters of credit (23.0%)
Domestic (6.2%)
Bank of America
Hyundai Motor Finance
05-10-95 6.19 $5,900,000 $ 5,830,019
Bank of New York River Fuel
03-20-95 6.09 6,300,000(b) 6,279,884
Total 12,109,903
_________________________________________________________________
_____________International (16.8%)(c)
Banque Pariabas
Southeast Paper
03-07-95 6.05 4,300,000 4,295,664
Banque Paribas
Cogentrix of Richmond
03-10-95 5.87 4,500,000 4,493,396
Barclays Bank Plc Banco Real
04-14-95 6.15 2,000,000 1,984,967
Credit Agricole Louis Dreyfus
03-17-95 6.03 900,000 897,588
03-21-95 6.00 5,000,000 4,983,334
Credit Suisse
Pemex Capital
03-23-95 6.09 6,000,000 5,977,890
Toronto Dominion
Franciscan Services
03-16-95 6.00 3,000,000 2,992,500
Union Bank of Switzerland
MLTC Funding
03-13-95 6.05 4,000,000 3,991,933
Union Bank of Switzerland
River Fuel Trust
03-22-95 6.02 3,000,000(b) 2,989,465
Total 32,606,737
_________________________________________________________________
_____________Total letters of credit
(Cost: $44,716,640) $ 44,716,640
_________________________________________________________________
_____________Certificate of deposit (2.6%)
International
Societe Generale Yankee
03-27-95 6.10 5,000,000 $ 5,000,000
_________________________________________________________________
_____________Total investments in securities
(Cost: $194,540,558)(e) $194,540,558
_________________________________________________________________
_____________Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to
the financial statements.
(b) Commercial paper sold within terms of a private placement
memorandum, exempt from registration under Section 4(2) of the
Securities Act of 1933, as amended, and may be sold only to
dealers in that program or other "accredited investors." These
securities have been determined to be liquid under guidelines
established by the board of directors.
(c) Foreign securities values are stated in U.S. dollars;
principal amounts are denominated in U.S. dollars.
(d) Interest rate varies to reflect current market conditions;
rate shown is the effective rate on Feb. 28, 1995.
(e) At Feb. 28, 1995, this cost also represents the cost of
securities for federal income tax purposes.
</TABLE>
PAGE
Investments in securities
Retirement Annuity Mutual Funds (Percentages represent value of
February 28, 1995 (Unaudited)investments compared to total net assets)
Managed Fund
<TABLE>
<CAPTION>
Investments in securities of unaffiliated issuers
Bonds (20.8%)
Issuer CouponMaturityPrincipal Value(a)
rate year amount
_________________________________________________________________
_____________<S> <C> <C> <C> <C>
U.S. government obligations (6.2%)
U.S. Treasury Bond 8.875 201713,450,000 15,297,896
U.S. Treasury Notes 4.625 199633,800,000 (g) 33,239,255
5.125 1998 7,500,000 7,133,249
5.375 199825,000,000 23,873,997
5.50 199648,400,000 (g) 47,847,751
5.625 199715,000,000 14,593,199
5.625 199820,000,000 19,338,398
Total 161,323,745
_________________________________________________________________
_____________Mortgage-backed securities (4.0%)
FHLMC 8.00 20245,400,000 5,357,813
10.00 200511,862,745 12,555,974
Collateralized Mtge Obligation 6.00 2023 10,776,827 7,417,582
6.50 20235,040,576 3,495,589
FNMA 6.00 20247,053,467 6,240,114
6.50 20232,810,541 2,573,402
7.00 20164,790,344 4,313,034
7.40 200410,000,000 9,938,799
8.00 20226,803,915 6,763,517
8.50 20238,761,146 8,887,088
9.00 20245,348,633 5,524,135
Collateralized Mtge Obligation 6.00 2024 6,370,067 3,842,601
6.50 202310,275,889 7,328,700
7.00 20195,749,030 5,196,778
7.00 202212,508,709 10,182,339
7.50 20146,163,675 5,552,300
Total 105,169,765
_________________________________________________________________
_____________Airlines (0.4%)
AMR 6.125 202412,000,000 10,890,000
_________________________________________________________________
_____________Automotive & related (0.3%)
GMAC 5.95 19987,000,000 6,623,750
8.375 19971,400,000 1,422,750
Total 8,046,500
_________________________________________________________________
_____________Banks and savings & loans (0.5%)
Chrysler Building NY 9.125 19991,460,000 1,553,075
First USA Bank 6.88 19966,700,000 6,674,875
Riggs Natl
Sub Nts 8.50 20064,900,000 4,569,250
Total 12,797,200
_________________________________________________________________
_____________Building materials (0.2%)
Building Material 11.75 20042,200,000 (d,f) 1,188,000
Owens Corning Fiberglass 9.375 20121,500,000 1,588,125
Schuller Int'l Group 10.875 20041,750,000 1,848,437
Total 4,624,562
_________________________________________________________________
_____________Chemicals (0.1%)
Rexene 11.75 20041,750,000 (g) 1,837,500
_________________________________________________________________
_____________Communications equipment (0.3%)
Celcaribe
2.14 20041,450,000 (d,f) 1,225,250
Unit 13.50 20041,700,000 (d,f) 1,079,500
Cencel
10.125 20044,000,000 (f) 1,555,000
Comcast Cellular
attached put 9.45 20005,000,000 (f) 3,625,000
Total 7,484,750
_________________________________________________________________
_____________Computers & office equipment (0.7%)
Conner Peripherals
Cv 6.75 200110,000,000 7,450,000
Silicon Graphics
Cv 3.45 201320,000,000 (d,f) 11,600,000
Total 19,050,000
_________________________________________________________________
_____________Energy (0.2%)
Petroleum Heat & Power 12.25 20051,000,000 1,037,500
Standard Oil 9.00 20194,000,000 4,170,000
Total 5,207,500
_________________________________________________________________
_____________Financial services (1.0%)
Associates Corp NA 7.25 199810,000,000 9,962,500
AVCO Financial 7.25 19994,750,000 4,720,312
Corporate Property Investors7.05 20032,000,000 (d) 1,882,500
7.18 20132,200,000 (d) 1,925,000
General Electric Capital 8.65 20181,000,000 1,020,000
Int'l Lease Finance 9.82 19952,000,000 2,052,500
Liberty Property Trust
Cv 8.00 20011,250,000 1,281,250
Salomon Brothers 6.75 20064,000,000 3,390,000
Total 26,234,062
_________________________________________________________________
_____________Foreign (2.3%)(c)
Cemex
(U.S. Dollar) 4.25 199710,000,000 (d) 6,300,000
Doman Inds
(U.S. Dollar) 8.75 20042,000,000 1,835,000
Empressa
(U.S. Dollar) 5.00 20045,000,000 (d) 1,500,000
Gov't Certificates of Israel
(U.S. Dollar) 9.25 20013,000,000 3,198,750
Hydro Quebec
(Canadian Dollar) 10.875 20015,000,000 3,880,000
(U.S. Dollar) 9.50 2030 2,500,000 2,725,000
KFW Int'l Finance
(U.S. Dollar) 8.20 20064,000,000 4,135,000
LeGrand
(U.S. Dollar) 8.50 20251,800,000 1,811,250
Methanex
(U.S. Dollar) 8.875 20015,000,000 5,150,000
Mexican U.S. Series D
(U.S. Dollar) 6.25 20191,500,000 735,000
(Euro Dollar) 7.25 20191,500,000 930,000
Phillipines Long Distance Telephone
(U.S. Dollar) 10.625 20041,400,000 1,358,000
Poland
(Euro Dollar) Stepup 3.25 20144,600,000 1,840,000
PT Inda Kiat Pulp & Paper
(U.S. Dollar) 11.875 20022,500,000 2,462,500
Republic of Argentina
(U.S. Dollar) 4.25 20238,500,000 3,368,125
Republic of Australia
(Australian Dollar) 7.50 20053,000,000 1,880,910
Republic of Brazil
(U.S. Dollar) 4.00 20142,040,000 828,750
(U.S. Dollar) 6.75 20121,600,000 800,000
Republic of Colombia
(U.S. Dollar) 7.25 20045,000,000 4,187,500
Republic of Italy
(U.S. Dollar) 6.875 20235,000,000 4,056,250
Roche Holding
(U.S. Dollar) 2.75 20007,000,000 5,604,340
Rogers Cable System
(Canadian Dollar) 9.65 20015,000,000 2,924,290
Total 61,510,665
_________________________________________________________________
_____________Health care (0.6%)
Johnson & Johnson 8.00 199810,000,000 10,212,500
Schering-Plough 7.44 19965,000,000 (d,f) 4,443,750
Total 14,656,250
_________________________________________________________________
_____________Health care services (0.4%)
Charter Medical
Sr Sub 11.25 20042,000,000 (d) 2,110,000
Foundation Health
Sr Nts 7.75 20036,600,000 6,360,750
Nat'l Medical Enterprises
Sr Sub 10.125 20051,000,000 1,022,500
Total 9,493,250
_________________________________________________________________
_____________Household products (0.1%)
Sweetheart Cup 9.625 20002,000,000 1,905,000
_________________________________________________________________
_____________Insurance (0.3%)
Nationwide Mutual 7.50 20244,000,000 (d) 3,385,000
New England Mutual
Credit Sensitive Nts 7.875 20241,000,000 (d) 1,697,500
Principal Mutual 8.00 20442,500,000 (d) 2,190,625
Total 7,273,125
_________________________________________________________________
_____________Leisure time & entertainment (0.1%)
Ballys Grand 10.375 20031,750,000 1,645,000
Hollywood Casino 14.00 19981,300,000 1,378,000
Kloster Cruise 13.00 20031,250,000 975,000
Total 3,998,000
_________________________________________________________________
_____________Media (0.8%)
Aldelphia Communications 9.875 20051,500,000 1,261,875
America Media Oper 11.625 20041,750,000 1,855,000
News America Holdings 7.50 20004,000,000 3,915,000
Tele-Communications 7.875 20131,150,000 1,016,312
Time Warner
Zero Coupon Cv 6.59 201241,900,000 (f) 13,198,500
Total 21,246,687
_________________________________________________________________
_____________Multi-industry conglomerates (0.1%)
Crane 7.25 19992,000,000 1,960,000
Tally Inds 12.25 20052,500,000 (h) 1,400,000
Total 3,360,000
_________________________________________________________________
_____________Paper & packaging (0.3%)
Container 10.75 20022,500,000 2,556,250
Pope and Talbot 8.375 20133,800,000 3,610,000
Stone Container 9.875 20012,500,000 2,450,000
Total 8,616,250
_________________________________________________________________
_____________Retail (--%)
Broadway Stores
Cv 6.25 2000500,000 (d) 340,000
_________________________________________________________________
_____________Utilities - electric (0.7%)
Alabama Power 9.00 20242,200,000 2,318,250
Arizona Public Service
Sale-Leased Obligation Bond 8.00 2015 3,600,000 3,370,500
Commonwealth Edison 8.375 20235,000,000 4,787,500
Long Island Lighting 9.75 20212,500,000 2,415,625
Sithe Independent Funding9.00 20131,500,000 (d) 1,507,500
Texas Utilities 5.875 19985,000,000 4,775,000
Total 19,174,375
_________________________________________________________________
_____________Utilities-gas (0.5%)
ARKLA 9.875 1997 5,000,000 5,106,250
Coastal 10.25 20042,500,000 2,787,500
Transcontinental Energy 9.375 2001 5,000,000 5,325,000
Total 13,218,750
_________________________________________________________________
_____________Utilities - telephone (0.3%)
AT & T
Zero Coupon Cv 0.00 19995,000,000 (d,f) 3,850,000
GTE Florida 9.625 20303,200,000 3,404,000
Total 7,254,000
_________________________________________________________________
_____________Miscellaneous (0.4%)
KinderKare Learning Center10.375 20012,750,000 2,801,563
Carco Auto
Asset-Backed Obligation7.875 19983,325,000 3,350,835
Standard Credit Card Trust5.95 20043,000,000 2,658,930
8.625 20021,750,000 1,795,115
Total 10,606,443
_________________________________________________________________
_____________Total bonds
(Cost: $565,212,945) $545,318,379
_________________________________________________________________
_____________</TABLE>
<TABLE>
<CAPTION>
Common & preferred stocks (66.3%)
Issuer Shares Value(a)
_________________________________________________________________
_____________<S> <C> <C>
Aerospace & defense (3.5%)
Allied Signal 350,000 $ 13,300,000
E-Systems 100,000 4,375,000
General Motors Cl H 200,000 7,525,000
Loral 100,000 4,087,500
Northrop Grumman 330,000 14,643,750
Raytheon 300,000 21,150,000
United Technologies 400,000 26,550,000
Total 91,631,250
_________________________________________________________________
_____________Airlines (0.1%)
Mesa Airlines 275,000(b) 1,718,750
_________________________________________________________________
_____________Banks and savings & loans (1.5%)
BankAmerica 250,000 12,031,250
First Chicago 450,000 22,781,250
First Chicago NEXTELL
$5.50 Cv Pfd 250,000 3,687,500
First Nationwide
$11.50 Pfd 20,000 2,000,000
Total 40,500,000
_________________________________________________________________
_____________Beverages & tobacco (0.8%)
Coca-Cola 400,000 22,000,000
_________________________________________________________________
_____________Building materials (1.4%)
Clayton Homes 750,000 13,406,250
Tyco Int'l 420,000 21,892,500
Total 35,298,750
_________________________________________________________________
_____________Chemicals (0.2%)
Morton Int'l 200,000 5,850,000
_________________________________________________________________
_____________Communications equipment (3.1%)
Celcaribe 276,420 359,346
DSC Communcation 330,000(b,g) 11,880,000
Motorola 360,000 20,700,000
Nokia Pfd 125,000(b) 9,406,250
Northern Telcom 600,000 20,475,000
PictureTel 35,000(b) 958,125
Scientific Atlanta 650,000 15,193,750
Video Telecomm 100,000(b) 1,000,000
Total 79,972,471
_________________________________________________________________
_____________Computers & office equipment (6.3%)
American Power Conversion 1,000,000(b,g) 17,937,500
Compaq Computer 500,000(b) 17,250,000
Computer Associates 400,000 22,800,000
Compuware 450,000(b) 16,537,500
Hewlett Packard 170,000 19,550,000
Int'l Business Machines 61,100 4,597,775
Microsoft 250,000(b) 15,750,000
Oracle Systems 375,000(b) 11,812,500
Pitney Bowes 400,000 14,200,000
Xerox 230,000(g) 25,501,250
Total 165,936,525
_________________________________________________________________
_____________Electronics (2.0%)
Intel 400,000(g) 31,900,000
Vishay Intertechnology 400,000 21,600,000
Total 53,500,000
_________________________________________________________________
_____________Energy (2.9%)
Amoco 450,000 26,662,500
Exxon 400,000 25,600,000
Mobil 200,000 17,400,000
Vastar 207,600 5,371,650
Total 75,034,150
_________________________________________________________________
_____________Financial services (5.4%)
Aimco 110,000 1,980,000
Bay Apartment 130,000 2,453,750
Dean Witter 430,000(g) 17,361,250
Duke Realty 220,000 5,912,500
Equity Residential 130,000 3,510,000
Federal National Mortgage 240,000 18,510,000
First Financial Management 300,000 20,737,500
First Industrial 140,000 2,677,500
Merry Land & Investment 110,000 2,268,750
National Golf 80,000 1,700,000
Oasis 180,000 3,982,500
Paragon 220,000 4,015,000
RFS Hotel 330,000 4,785,000
ROC Communities 220,000 4,592,500
SBH-Hewlett ELK
5.25% Cv Pfd 75,000(i) 6,825,000
Southwestern Property Trust 120,000 1,455,000
Summit Properties 170,000 2,890,000
Travelers 820,000 31,877,500
Weeks 200,000 4,425,000
Total 141,958,750
_________________________________________________________________
_____________Foreign (4.1%)
BBC Brown Boveri 10,000 8,727,710
British Gas ADR 200,000 9,200,000
Ericsson Cl B ADR 250,000 14,218,750
Grupo Carso ADR 600,000(b,g) 4,438,500
News Corp Ltd ADR 600,000(g) 10,875,000
News Corp Ltd ADR Pfd 200,000 3,225,000
Royal Dutch Petroleum 300,000(g) 33,637,500
Tele Danmark 400,000(b) 10,050,000
YPF 700,000 13,300,000
Total 107,672,460
_________________________________________________________________
_____________Food (0.2%)
Sysco 150,000 4,256,250
_________________________________________________________________
_____________Furniture & appliances (1.1%)
Black & Decker 500,000 13,375,000
Singer 600,000 14,625,000
Total 28,000,000
_________________________________________________________________
_____________Health care (2.7%)
Genetech Red Comm 420,000(b) 21,105,000
Johnson & Johnson 100,000 5,675,000
Merck 300,000 12,712,500
Pfizer 280,000 23,170,000
Schering-Plough 100,000 7,837,500
Total 70,500,000
_________________________________________________________________
_____________Health care services (3.9%)
Beverly Enterprises 500,000(b) 6,500,000
Columbia/HCA Healthcare 650,000(g) 26,893,750
FHP Int'l
Series A Pfd 208,000 5,174,000
Humana 700,000(b) 16,625,000
PacifiCare Health
Systems Class B 220,000(b) 15,455,000
United Healthcare 400,000 17,200,000
U.S. HealthCare 350,000(g) 15,050,000
Total 102,897,750
_________________________________________________________________
_____________Household products (1.7%)
Gillette 300,000 23,737,500
Proctor & Gamble 300,000 19,950,000
Total 43,687,500
_________________________________________________________________
_____________Industrial equipment & services (4.0%)
Caterpillar 460,000 23,747,500
Deere 220,000 16,857,500
Illinois Tool Works 250,000 11,218,750
Service Master 50,000 1,218,750
Stewart & Stevenson 700,000 23,100,000
WMX Technologies 600,000 15,825,000
York Int'l 300,000 11,550,000
Total 103,517,500
_________________________________________________________________
_____________Industrial transportation (2.2%)
Conrail 200,000 11,050,000
CSX 250,000 19,437,500
Federal Express 50,000(b) 3,256,250
Norfolk Southern 160,000 10,580,000
Union Pacific 255,000 13,323,750
Total 57,647,500
_________________________________________________________________
_____________Insurance (0.5%)
Unum 290,000 12,325,000
_________________________________________________________________
_____________Media (3.5%)
CBS 300,000(g) 19,350,000
Comcast
Class SPL 750,000 11,812,500
LIN Television 115,000(b) 3,392,500
Tele-Communications Class A 1,050,000(b) 23,887,500
Time Warner 550,000 21,243,750
Turner Broadcasting Class B 700,000 13,212,500
Total 92,898,750
_________________________________________________________________
_____________Metals (1.8%)
Alumax 450,000(b) 12,881,250
Freeport McMorRan & Gold Cl A 8,750 183,750
Freeport McMorRan 700,000 12,600,000
Inco Ltd 250,000 6,718,750
Kaiser Aluminum
7.25% Cv Pfd 270,000 2,227,500
Nucor 200,000 11,225,000
Total 45,836,250
_________________________________________________________________
_____________Multi-industry conglomerates (4.3%)
ALCO Standard 100,000(g) 6,800,000
ALCO Standard
2.375% Cv Pfd 100,000 7,825,000
Emerson Electric 360,000 23,805,000
General Electric 1,150,000 63,106,250
Olsten 350,000 12,031,250
Total 113,567,500
_________________________________________________________________
_____________Paper & packaging (1.1%)
Crown Cork & Seal 500,000(b) 21,312,500
International Paper 100,000 7,637,500
Total 28,950,000
_________________________________________________________________
_____________Restaurants & lodging (0.8%)
McDonalds 400,000 13,300,000
Wendy's Int'l 560,000 8,680,000
Total 21,980,000
_________________________________________________________________
_____________Retail (2.5%)
CUC Int'l 600,000(b) 21,150,000
Dayton Hudson 180,000 12,690,000
Home Depot 300,000 13,462,500
OfficeMax 200,000(b) 5,000,000
Pep Boys 400,000 13,100,000
Total 65,402,500
_________________________________________________________________
_____________Textiles & apparel (0.3%)
Unifi 300,000 8,475,000
_________________________________________________________________
_____________Utilities-electric (1.0%)
California Energy 500,000(b,g) 8,562,500
Cinergy 300,000 7,425,000
SCE 600,000 9,825,000
Total 25,812,500
_________________________________________________________________
_____________Utilities-gas (0.4%)
Enron 350,000 11,550,000
_________________________________________________________________
_____________Utilities - telephone (3.0%)
Airtouch Communications 800,000(b) 21,800,000
Century Telephone 250,000 7,781,250
LIN Broadcasting 230,000 29,756,250
MCI Communications 1,000,000 20,125,000
Total 79,462,500
_________________________________________________________________
_____________Total common & preferred stocks
(Cost: $1,573,421,518) $1,737,839,606
_________________________________________________________________
_____________</TABLE>
<TABLE>
<CAPTION>
Short-term securities (14.5%)
_________________________________________________________________
_____________Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_________________________________________________________________
_____________<S> <C> <C> <C>
U.S. government agency (0.3%)
FHL Bank Disc Nts
03-06-95 5.87% $ 2,800,000 $2,797,725
03-09-95 5.86 5,405,000 5,397,985
Total 8,195,710
_________________________________________________________________
_____________Commercial paper (13.7%)
AI Credit
04-06-95 6.29 6,500,000 6,458,877
Albertson's
03-08-95 6.02 6,000,000 5,993,035
American General
03-24-95 5.98 13,800,000(e) 13,747,541
Aon
03-01-95 5.90 500,000 500,000
03-24-95 5.95 1,300,000 1,295,075
04-24-95 6.02 3,000,000 2,973,135
Associates North America
03-29-95 5.97 7,000,000 6,967,605
AVCO Financial
03-02-95 5.88 6,500,000 6,498,944
Barclays
03-29-95 5.98 3,600,000 3,583,340
BBV Finance Delaware
04-04-95 6.34 1,200,000 1,192,535
Beneficial
03-02-95 6.06 10,300,000 10,298,275
CAFCO
03-06-95 6.06 5,200,000 5,195,667
04-06-95 6.00 5,100,000(e) 5,069,553
04-25-95 6.19 5,000,000 4,951,385
Cargill Financial
03-06-95 6.05 6,000,000(e) 5,995,000
Chevron Oil
03-21-95 5.98 6,000,000 5,980,167
Ciesco (LP)
04-05-95 5.96 4,300,000 4,275,251
04-05-95 5.99 5,100,000 5,070,448
04-10-95 6.16 4,200,000 4,169,325
CIT Group Holdings
04-21-95 6.06 8,700,000 8,622,224
Commercial Credit
03-09-95 6.01 4,500,000 4,494,020
03-16-95 6.03 6,500,000 6,483,750
Consolidated Railway
04-04-95 6.14 2,800,000(e) 2,782,777
04-28-95 6.04 7,000,000(e) 6,932,559
Duke Power
03-13-95 5.97 8,500,000 8,483,142
Fleet Funding
03-15-95 5.96 4,300,000(e) 4,289,210
Gannett
03-07-95 6.04 5,500,000(e) 5,493,518
Gateway Fuel
04-03-95 6.11 7,110,000 7,067,369
GE Capital
03-03-95 5.97 3,600,000 3,598,810
07-06-95 6.38 5,000,000 4,887,822
GE Capital Service
04-11-95 6.08 7,000,000 6,949,133
Goldman Sachs
04-06-95 6.07 10,600,000 10,536,188
Household Finance
03-01-95 5.90 9,000,000 9,000,000
03-22-95 6.04 4,700,000 4,682,736
04-21-95 6.19 2,900,000 2,873,716
Kredietbank
North America Finance
05-01-95 6.18 6,000,000 5,935,727
Merrill Lynch
04-07-95 6.04 13,000,000 12,919,833
Nat'l Australia Funding
04-18-95 6.09 3,200,000 3,171,968
Nestle Capital
03-16-95 6.00 7,100,000 7,082,309
Norfolk Southern
05-04-95 6.16 7,200,000(e) 7,119,140
PACCAR Financial
04-21-95 6.21 3,000,000 2,972,287
05-22-95 6.08 700,000 689,962
Penney (JC)
04-17-95 6.11 5,900,000 5,849,517
PepsiCo
03-20-95 6.01 6,900,000 6,878,223
Pfizer
03-15-95 5.98 6,600,000 6,584,728
Pitney Bowes Credit
03-14-95 5.96 6,000,000 5,987,173
04-17-95 6.10 3,900,000 3,866,630
05-11-95 6.14 5,000,000 4,937,800
Societe Generale Yankee
04-04-95 6.29 4,500,000 4,471,500
04-10-95 6.19 6,900,000 6,849,605
Southwest Bell Capital
03-23-95 5.94 6,000,000 5,978,293
St. Paul Companies
03-17-95 5.99 2,400,000(e) 2,393,632
04-03-95 5.98 4,800,000(e) 4,773,820
Sysco
03-09-95 6.06 10,000,000(e) 9,983,195
03-14-95 5.88 4,100,000(e) 4,091,368
04-13-95 6.09 2,700,000(e) 2,678,750
04-17-95 6.09 5,000,000(e) 4,957,218
04-18-95 6.11 2,700,000(e) 2,676,348
05-16-95 6.16 5,000,000(e) 4,933,480
Toyota Motor
04-06-95 6.05 5,000,000 4,970,000
04-07-95 6.05 10,000,000 9,938,333
Unilever Capital
03-27-95 6.15 900,000 895,550
USAA Capital
03-07-95 6.24 4,000,000 3,994,659
03-14-95 6.01 7,000,000 6,984,909
US WEST Communications
04-12-95 6.04 6,460,000 6,410,237
Total 358,368,326
_________________________________________________________________
_____________Letters of Credit (0.5%)
Bank of New York-
River Fuel
03-20-95 6.09 8,922,000(e) 8,893,512
First Chicago-
Commed Fuel
03-10-95 6.11 4,900,000 4,891,586
Total 13,785,098
_________________________________________________________________
_____________Total short-term securities
(Cost: $380,417,723) $ 380,349,134
_________________________________________________________________
_____________Total investments in securities
(Cost: $2,519,052,187)(j) $2,663,507,119
_________________________________________________________________
_____________
Notes to investments in securities
(a)Securities are valued by procedures described in Note 1 to the
financial statements.
(b) Presently non-income producing.
(c)Foreign securities values are stated in U.S. dollars;
principal amounts are denominated in the currency indicated.
(d)Represents securities sold under Rule 144A, which are exempt
from registration under the Securities Act of 1933, as amended.
These securities have been determined to be liquid under
guidelines established by the board of directors.
(e)Commercial paper sold within terms of a private placement
memorandum, exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other "accredited
investors." These securities have been determined to be liquid under guidelines
established by the board of directors.
(f)For zero coupon bonds, the interest rate disclosed represents
the annualized effective yield on the date of acquistion.
(g)Security is partially or fully on loan. See Note 6 to the
financial statements.
(h)For these securities, the interest rate disclosed represents
the annualized effective yield on the date of acquistion to
interest reset date shown in the maturity year column.
(i)ELKS are equity-linked securities that are structured as an
interest-bearing debt security of a brokerage firm and linked to
the common stock of another company. The terms of ELKS differ
from those of ordinary debt securities in that the principal
amount received at maturity is not fixed, but is based on the
price of the common stock the ELK is linked to.
The principal amount disclosed equals the current estimated
future value of the amount to be received upon maturity.
(j)Feb. 28, 1995, the cost of securities for federal income tax
purposes was approximately $2,519,052,000 and the approximate
aggregate gross unrealized appreciation and depreciation based on
that cost was:
Unrealized appreciation . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $219,309,000
Unrealized depreciation . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (74,854,000)
_________________________________________________________________
_____________
Unrealized appreciation . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $144,455,000
_________________________________________________________________
_____________</TABLE>
PAGE
Quick telephone reference
IDS Life Surrenders and exchanges,dollar-
National/Minnesota:
Insurance Company cost averaging and automated 800-437-0602
partial surrenders
Mpls./St.Paul area:
671-4736
________________________________________________________________________
_______
TTY Service For the hearing impaired 800-285-8846
________________________________________________________________________
_______
American Express Automated account information National/Minnesota:
Infoline (TouthTone* phones only), 800-272-4445
including current fund prices and
performance, account values Mpls./St. Paul area:
and recent account transactions 671-1630
________________________________________________________________________
_______
Retirement Annuity Mutual Funds
IDS Tower 10
Minneapolis, MN 55440-0010
