Financial statements
Retirement
Annuity Mutual Funds
Offers six funds with
separate goals and
objectives to provide
investment flexibility with
no initial sales charge.
1996 SEMIANNUAL REPORT
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
Special Income Fund
From the portfolio manager 6
Ten largest holdings 7
Managed Fund
From the portfolio manager 8
Ten largest holdings 9
Moneyshare Fund
From the portfolio manager 10
International Equity Fund
From the portfolio manager 11
Ten largest holdings 12
Aggressive Growth 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 stock and bond markets continued to advance
throughout most of the past six months, extending a
remarkable rally that began early in 1995. As a result,
the IDS Life Retirement Annuity Mutual Funds that
invest primarily in U.S. securities registered solid
gains for the first half of their fiscal years -
September 1995 through February 1996.
While the stock and bond markets can be volatile on a
short-term basis, they historically have provided
attractive returns over the long term. A focus on long-
term financial objectives and a balanced investment
program are good guidelines for investing in today's
economic environment. (Past performance is no guarantee
of future results.)
The IDS Life Retirement Annuity Mutual Funds allow you
to take advantage of
long-term opportunities through a variety of investment
avenues. New this year are three funds: Growth
Dimensions Fund, Global Yield Fund and Income Advantage
Fund. These additions provide even greater
opportunities to address your investment needs. Please
consult your financial advisor about the role each fund
can play in meeting your long-term financial
objectives. Financial advisors offer investments and
financial planning services on behalf of American
Express Financial Advisors Inc., and fixed and variable
insurance and annuities issued by IDS Life Insurance
Company and its subsidiaries.
Your advisor also can help make sure your investment
and protection strategies continue to fit your
financial situation. As your objectives and time
horizons change, talk to your advisor about the broad
range of products and services designed to help you
meet a variety of investment and protection needs.
William R. Pearce
PAGE
Capital Resource Fund
(picture of Curt Weaver)
Portfolio manager
From the portfolio manager
The continuation of an advantageous investment
environment set the stage
for Capital Resource Fund to deliver positive
performance for the first half of the fiscal year,
September 1995 through February 1996. For contract-
owners, that meant a total return of 9.71% during the
period. (This figure does not reflect expenses that
apply to the variable accounts or subaccounts or to the
annuity contract.)
Aside from a handful of relatively brief setbacks,
stocks maintained the powerful pace they had set since
the beginning of 1995. In addition to the fundamental
forces of strong corporate profits, a low rate of
inflation and declining long-term interest rates,
during the past several months stocks also found
themselves supported by increasingly large cash flows
from individual investors into mutual funds. As fund
managers put the money to work, the market moved
higher.
For our part, we continued to stick with the four
investment themes we carved out some time ago. These
include companies that: have a track record of long-
term growth, are on the verge of experiencing above-
average growth, appear to be ready to rebound after
corporate restructuring, or present what we call a
"special situation." In each case, we insist that the
stock price not be excessive, even if we think the
stock could rise further.
Over the past six months, this approach allowed the
Fund to enjoy especially good results from stocks of
leisure, media and insurance companies. Several other
types of stocks also made somewhat smaller
contributions, including technology, health care and
retailing. Also benefiting performance was our decision
to keep minimal cash reserves, which offered a return
far below what we were able to achieve by investing in
stocks.
As for the rest of the year, we continue to be highly
selective and patient in adding stocks to the
portfolio. While this investment approach may temper
performance somewhat during market run-ups, we believe
it also helps cushion the Fund during downturns. Given
our expectation of more market volatility this year, we
think our more cautious style
will serve us well.
Curt Weaver
PAGE
<TABLE>
<CAPTION>
The Fund's ten largest holdings
Capital Resource Fund
(Pie chart) The ten holdings listed here make up 24.03% of
the Fund's net assets
Percent Value
(of Fund's net assets)(as of Feb. 29, 1996)
<S> <C> <C>
Apple Computer 4.33% $191,125,000
A leading manufacturer of personal computers and related
software and peripherals.
Time Warner 3.68 162,450,000
One of the world's largest median/entertainment/publishing
company. Prominent operating units include Time magazine.
Warner Bros. and HBO.
Novell 3.68 162,093,750
A solid leader in local area network (LAN) software. The
company's NetWare family of products is a leader in the
information sharing among work groups and enterprises.
Tele-Communications Cl A 2.55 112,350,000
The largest cable system operator, with over 10 million
subscribers in the United States. Approximately 70% of its
business is regulated.
Reader's Digest Cl A 2.17 95,750,000
Publisher and direct mail marketer of magazines, books,
recorded music and other products worldwide.
IVAX 2.05 90,168,750
A holding company with subsidiaries involved in personal
care products, generic and branded pharmaceuticals,
intravenous solutions and related products, medical
diagnostics and specialty chemicals.
State Street Boston 1.67 73,531,250
Investment processing services for financial institutions
and corporate and government clients.
Intl Game Technology 1.37 60,475,000
The leading manufacturer of gaming machines in the world. In
addition, the company has created a software package that
can tie many machines at varying locations into a network
that can increase the winnings.
Bankers Trust NY 1.28 56,546,875
A leading money center bank focused heavily on non-bank
activities, including trading, risk management, asset
management and corporate finance.
Tele-Communications Liberty Media Cl A 1.25 55,250,000
Invests in entertainment, educational and informational
programs for television and other media.
Excludes short-term securities.
</TABLE>
PAGE
To our contract owners
Special Income Fund
(picture of Steven C. Merrell)
Portfolio manager
From the portfolio manager
Despite a sharp downturn late in the period, Special
Income Fund posted positive results during the first
half of the fiscal year - September 1995 through
February 1996. For the six months, the Fund's total
return was 5.61%. (This figure does not reflect
expenses that apply to the variable accounts or
subaccounts or to the annuity contract.)
As it had earlier in the year, the bond market enjoyed
largely smooth sailing during the final four months of
1995. Prompted by moderate economic growth, an ongoing
low inflation rate and the possibility of a meaningful
balanced-budget agreement, long-term interest rates
continued their year-long decline. As measured by the
yield on the 30-year U.S. Treasury bond, rates came
down nearly two full percentage points by year-end. As
always, the drop in rates drove up prices of existing
bonds and, consequently, the net asset value of mutual
funds such as this one.
This Fund especially benefited from the positive trend
because of its emphasis on bonds with longer-than-
average maturities, whose prices rise more than those
of shorter-term bonds when rates fall. Also providing
an extra boost last year were our bond holdings in so-
called "emerging markets," including Brazil, Argentina,
Mexico, Poland, Indonesia and China. These bonds
experienced strong price appreciation and substantially
contributed to the Fund's positive performance.
The environment changed with the new year, however, as
bond investors became concerned about the future of the
balanced-budget agreement, political rhetoric stemming
from the presidential campaign, a weakening dollar and
the possibility that foreign investors would pull out
of the U.S. market. The result was a rapid rise in long-
term interest rates that drove down bond prices and,
naturally, the Fund's net asset value.
Our view at this writing (early March) is that the key
fundamentals of moderate economic growth and low
inflation will eventually reassert themselves and,
ultimately, result in long-term interest rates coming
back down. Given that outlook, we have made no major
adjustments to the portfolio and are looking forward to
the bond market returning to a
positive path as the year progresses.
Steven C. Merrell
PAGE
<TABLE>
<CAPTION>
The Fund's ten largest holdings
Special Income Fund
(Pie chart) The ten holdings listed here make up 9.78% of
the Fund's net assets
Percent Value
(of Fund's net assets)(as of Feb. 29, 1996)
____________________________________________________________
__________________
<S> <C> <C>
Govt of Poland 1.33% $25,574,938
3.75% Stepup Nts 2014
Republic of Germany 1.25 24,031,590
4.875% 2002
Hydro Quebec 1.14 22,015,400
8.50% 2029
Republic of Brazil C Bonds 1.12 21,623,812
4.00% 2014
GMAC 1.08 20,763,400
7.85% 1997
Republic of Argentina .82 15,718,750
7.125% 2023
Republic of Argentina .78 15,033,750
5.00% 2023
United Kingdom Treasury .77 14,785,515
8.00% 2003
Govt of Poland .75 14,415,469
6.81% 2024
Govt of Canada .74 14,255,896
7.64% 2001
Excludes short-term securities and U.S. Treasury and
government agency holdings.
</TABLE>
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
Managed Fund posted a solid gain during the past six
months, as a positive environment for stocks and bonds
prevailed throughout most of the period. Contract
owners realized a total return of 8.35% from September
1995 through February 1996, the first half of the
Fund's fiscal year. (This figures does not reflect
expenses that apply to the variable accounts or
subaccounts or to the
annuity contract.)
The favorable forces of robust corporate profits,
moderate economic growth, low inflation and declining
long-term interest rates, which had dominated the
investment climate since early 1995, remained in place
as the period began. Not surprisingly, the stock market
responded with a largely uninterrupted advance that
continued through February. Bonds followed suit until
January, when dimming hopes of an agreement to balance
the federal budget and concerns about higher inflation
drove up long-term interest rates and sent bond prices
on a downward spiral.
Among our better-performing stock holdings during the
six months were those of aerospace/defense, media,
financial services, pharmaceutical and health-care
service companies. The stock side of the portfolio
comprised about 80% of assets last fall, which was
beneficial to Fund performance given the strength of
the market at that time. Later in the period, we
brought the stock exposure down to about 70%, as we
grew somewhat less positive on the market's near-term
prospects.
Although they made up a smaller portion of the
portfolio than in the recent past, our bond holdings
made a substantial contribution to performance for most
of the period. This boost resulted largely from our
"long duration" structure, which makes bond prices more
sensitive to interest-rate swings. When rates fell
during the final four months of 1995, our holdings
enjoyed substantial price appreciation. However, when
interest rates rose during the last several weeks of
the period, the long duration penalized performance. We
were able to temper the effect, though, by shifting
some money from U.S. Treasury bonds into corporate
bonds, which withstood the rate rise relatively well.
As we enter the second half of the fiscal year, we are
taking a less aggressive investment approach than we
employed in 1995. This includes an emphasis on so-
called "defensive" stocks in the health care, food,
household product and electric utility sectors, as well
as a higher level of cash reserves. On the bond side,
we've shortened the duration somewhat and are
maintaining a highly diversified group of holdings.
These strategies reflect our view that stocks and bonds
are unlikely to continue to enjoy the best-of-all-
worlds environment we saw in 1995. While we think the
prospects for positive results remain reasonably good,
a somewhat more cautious stance strikes us as prudent
at this time.
Michael P. Ducar
Deborah L. Pederson
<TABLE>
<CAPTION>
The Fund's ten largest holdings (continued)
Managed Fund
(Pie chart) The ten holdings listed here make up 12.35% of
the Fund's net assets
Percent Value
(of Fund's net assets)(as of Feb. 29, 1996)
____________________________________________________________
__________________<S> <C> <C>
General Electric 1.89% $64,175,000
A diversified company with interests in manufacturing,
broadcasting (NBC), services and technology.
United Healthcare 1.54 52,200,000
UNUM 1.21 41,212,500
Through various subsidiaries, UNUM provides a broad range of
disability, health, life insurance and group pensions
products.
Raytheon 1.18 40,100,000
Designs, manufactures and sells electronic devices,
equipment and systems for government and commercial use.
About two-thirds of sales are to the military (missiles and
electronics).
Columbia Healthcare 1.13 38,325,000
An operator of the largest hospital chain that transformed
itself from a small hospital management company. Columbia
Healthcare is a factor in most other parts of health care
delivery through
ownership or joint ventures.
Loral 1.11 37,700,000
A leading supplier of defense electronics systems,
components and services.
United Technologies 1.11 37,625,000
A leading worldwide manufacturer of jet engines,
helicopters, heating/air conditioning equipment, elevators
and escalators.
Travelers 1.08 36,781,250
Among the world's largest multi-line financial services
companies, focusing on insurance, managed
health care and investments.
Tyco Intl 1.06 36,125,000
A diverse, New England-based producer of packaging, cable
manufacturing, fire extinguishing systems, alarms and
controls, plus miscellaneous simple electronic parts.
Proctor & Gamble 1.04 35,260,000
A major manufacturer of personal-care products, detergents,
diapers and food.
Excludes short-term securities and U.S. Treasury and
government agency holdings.
</TABLE>
PAGE
To our contract owners
Moneyshare Fund
(picture of Terry Fettig)
Portfolio manager
From the portfolio manager
Moneyshare Fund's yield fell slightly during the first
half of its fiscal year (September 1995 through
February 1996), tracking a decline in short-term
interest rates that began last summer. For the seven-
day period ended Feb. 29, 1996, the Fund's compound
annualized yield was 4.98%, and the simple annualized
yield was 4.86%. In keeping with its objective, the
Fund maintained a stable $1 per share price throughout
the six-month period. (Although the Fund seeks
to maintain a $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 decline in interest rates reversed a trend that had
been in place since early 1994 when the Federal Reserve
Board began raising short-term rates to temper economic
growth and head off a potential run-up in the inflation
rate. (The Fed adjusts short-term rates based on the
condition of the economy and the inflation outlook.
When the economy appears weak and inflation is low, the
Fed usually lowers rates to stimulate economic growth.
When the economy is strong, the Fed usually raises
rates to moderate economic growth and thereby keep
inflation in check.)
By July of last year, with evidence that economic
growth was moderating while inflation was remaining
under control, the Fed reversed policy and reduced
short-term rates a bit. Two more of these so-called
"easing" moves were to follow - one in December and one
in February of this year.
While the effect was not dramatic, the rate reductions
did lead to lower rates on the securities this Fund
invests in and, ultimately, to a somewhat lower Fund
yield. To help counter that effect, we emphasized
investments in securities with longer maturities, which
pay higher interest.
However, this strategy did not alter our top priority
of providing a stable cash investment for contract
holders. Therefore, we maintained our conservative
portfolio-management approach, which resulted in an
exclusive focus on high-grade securities and only
subtle shifts in portfolio structure.
For the second half of the fiscal year, we look for the
economy to continue to grow at a modest pace while
inflation remains unthreatening. In such a scenario, we
think the Federal Reserve will keep to its policy of
reducing short-term rates. If that proves true, we plan
to maintain a somewhat longer portfolio maturity to
counteract the likelihood of declining security yields.
Terry Fettig
PAGE
To our contract owners
International Equity Fund
(picture of Paul Hopkins)
Portfolio manager
From the portfolio manager
International markets advanced by nearly 6% during the
first half of the Fund's fiscal year. The Fund's
performance closely tracked that result as it provided
a total return of 7.17% for the September 1995 through
February 1996 period. (This figure does not reflect
expenses that apply to the variable accounts or
subaccounts or to the annuity contract.)
The Japanese market was a good performer until January,
when it was confronted by three factors: the approach
of the Japanese fiscal year-end in March, which usually
leads to stock-selling by Japanese institutions; doubts
regarding resolution of that country's banking crisis;
the Japanese stock market, represented by the Nikkei
Average, reached 22,000 - a level that previously
signaled the top of the market in both 1992 and 1994.
Elsewhere, Southeast Asia provided substantial returns,
with Hong Kong and Singapore each up about 22%. These
results were especially encouraging, as we increased
our investments in those countries during the final
months of 1995. Although there may be some setbacks in
these markets in the short term, we think they continue
to represent attractive opportunities.
In Europe, the major markets were quiet, with the
United Kingdom, France and Germany up 5.7%, 7.7% and
9.5%, respectively. We expect economic growth to
rebound in that part of the world, and therefore have
increased our investments there.
Overall, we think prospects for gain in global stock
markets remain good, and, given that, are holding to a
relatively aggressive investment strategy.
Paul Hopkins
PAGE
<TABLE>
<CAPTION>
The Fund's ten largest holdings
International Equity Fund
(Pie chart) The ten holdings listed here make up 14.75% of
the Fund's net assets
Percent Value
(of Fund's net assets)(as of Feb. 29, 1996)
____________________________________________________________
_______________<S> <C> <C>
Glaxo Wellcome (United Kingdom) 1.85% $31,077,571
Engaged in the research, development, manufacture and
distribution of pharmaceuticals, which are marketed
primarily to wholesale drug distributors, hospitals,
pharmacies and health maintenance organizations.
Sandoz (Switzerland) 1.60 26,775,950
A manufacturer and seller of pharmaceuticals, chemicals,
seeds and agro-chemicals.
Siebe (United Kingdom) 1.51 25,364,480
A United Kingdom engineering company with significant U.S.
presence via Foxboro in control devices and process systems.
TDK (Japan) 1.50 25,226,000
This company and its subsidiaries are engaged in the
manufacturing of components for use in electronic equipment
and machinery.
Credit Commercial de France (France) 1.48 24,856,596
The parent company of a banking group primarily engaged in
retail banking, investment banking, asset management and
international private banking.
Nippon Denso (Japan) 1.44 24,172,425
This company and its subsidiaries form the NatWest Group,
which provides an extensive range of banking and financial
services through offices and branches in the United Kingdom
and overseas.
Telefonica (Spain) 1.40 23,547,808
Spain's monopoly operator of basic telephone and telex
services.
Mitsubishi Heavy Industries (Japan) 1.35 22,680,000
Japan's largest shipbuilder and comprehensive machinery
maker. Its lines range from ships and nuclear power plants
to aerospace and military equipment.
Matsushita Electric (Japan) 1.33 22,388,800
One of the world's leading producers of electronic and
electric products. Most of Matsushita group's products are
marketed under several trade names, including "Panasonic,"
"National," "Technics," "Quasar," "Victor" and "JVC."
Kingfisher (United Kingdom) 1.29 21,577,142
Retails a wide range of consumer goods and merchandise
through B&Q, Charlie Brown's Auto Centers, Comet Group,
Super Drug Stores and Woolworths. The company's products
include car parts and accessories, electrical goods, home
imporvement goods, compact disks, computer games, toys,
clothing, medicines, beauty aids and other items.
Excludes short-term securities.
</TABLE>
PAGE
To our contract owners
Aggressive Growth Fund
(picture of Martin G. Hurwitz)
Portfolio manager
From the portfolio manager
The favorable forces of moderate economic growth, low
inflation, healthy corporate profits and falling long-
term interest rates continued to push stocks higher
during the past six months, extending the powerful bull
market that was set in motion at the start of 1995.
Aggressive Growth Fund was well-positioned to profit
from the trend, as evidenced by a total return of 9.90%
from September 1995 through February 1996 - the first
half of the Fund's fiscal
year. (This figure does not reflect expenses that apply
to the variable accounts
or subaccounts or to the annuity contract.)
In light of the positive investment environment, we
continued to reduce the cash reserves in the portfolio
and put that money to work in stocks, whose return far
exceeded that available from cash-equivalent
investments. We reduced the level of cash reserves
during the period, and we continue to do so as we find
additional opportunities in stocks.
We put much of the money into stocks of biotechnology
and oil services companies. Concurrently, we reduced
our holdings among technology stocks (largely computer-
related), a group that had given us excellent
performance during the first several months of 1995 and
at one point comprised nearly half of portfolio assets.
Our timing proved to be good, as the technology went
into an overall slump late last year, while most of our
biotechnology and oil services issues began to advance.
In addition, we enjoyed largely positive results from
our holdings among health care, retailing, restaurant
and chemical stocks, plus those of selected foreign
companies. Prior to that, stocks of telecommunications
equipment, insurance and financial services companies
were especially productive for the Fund.
Looking to the rest of the fiscal year, we expect the
stock market to continue to benefit from low inflation,
stable-to-declining interest rates and substantial cash
flows into stock mutual funds. That said, we also
anticipate greater overall volatility in the market as
well increased "sector rotation," as various stock
sectors go in and out of favor with investors.
Therefore, nimbleness and sharp stock selection are
likely to be the keys to success in the months ahead.
Martin G. Hurwitz
PAGE
<TABLE>
<CAPTION>
The Fund's ten largest holdings
Aggressive Growth Fund
(Pie chart) The ten holdings listed here make up 15.16% of
the Fund's net assets
Percent Value
(of Fund's net assets)(as of Feb. 29,1996)
<S> <C> <C>
HBO & Company 3.70% $63,360,000
A health-care information service company that provides a
variety of computer-based
information systems and services to hospitals and their
affiliates.
IDEXX Laboratories 2.24 38,400,000
Developer, manufacturer and distributor of 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 27,550,000
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.
Hospitality Franchise 1.46 25,110,000
The largest hotel franchiser in the world, as measured by
the number of rooms. The
company provides operational and administrative services to
its franchises including Days Inn,
Ramada, Howard Johnson, Super 8, Park International and
Village Lodge brand names.
Oracle 1.29 22,100,000
One of the largest independent vendors of database-
management software offering a
variety of new products, enhancements and applications
software.
Paychex 1.12 19,293,750
Provider of computerized payroll accounting services to more
than 172,000 small- to medium-sized businesses nationwide.
Parametric Technology .98 16,734,375
A producer of software products for the automation of
complex engineering tasks that
are essential to the development of virtually all
manufactured products.
Danka Business Systems .96 16,406,250
Distributes and services photocopiers and fax machines,
primarily in the United States.
Viking Office Products .91 15,640,625
A mid-sized catalog retailer selling office products to
small- and mid-sized businesses. The
company has expanded from the United States to a market that
includes the United Kingdom,
France, Germany, the Netherlands and Australia.
Loral .89 15,315,625
A leading supplier of defense electronic systems, components
and services.
Excludes short-term securities.
</TABLE>
PAGE
<TABLE>
<CAPTION>
Statements of assets and liabilities
Retirement Annuity Mutual Funds
Feb. 29, 1996 (Unaudited)
Capital Special Managed
Resource Income Fund
Fund Fund
Assets
_________________________________________________________________
___________________<S> <C> <C> <C>
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated
issuers (identified cost, $3,537,893,992;
$1,872,061,440 and $2,952,906,519, respectively)$3,829,679,839$1,946,759,875
$3,425,759,126
Investments in securities of affiliated issuers
(identified cost, $590,626,340 for Capital
Resource Fund ) 438,213,215 -- --
Cash in bank on demand deposit 156,972 1,449,992 --
Receivable for investment securities sold256,681,7061,170,46476,501,112
Dividends and accrued interest receivable6,097,73933,031,273 17,151,185
U.S. government securities held as collateral for
securities loaned (Note 5) 4,587,902 -- 20,289,261
Receivable (for capital stock sold) from:
IDS Life accounts 1,071,901 11,475,431 14,418,581
IDS Life of New York accounts 115,639 508,019 879,483
_________________________________________________________________
___________________Total assets 4,536,604,913 1,994,395,0543,554,998,748
_________________________________________________________________
___________________Liabilities
_________________________________________________________________
___________________Disbursements in excess of cash on demand
deposit -- -- 11,244,715
Dividends payable to separate accounts (Note 1) 10,632,110 12,319,080 23,214,906
Payable for investment securities purchased61,877,9965,706,65145,559,591
Accrued investment management and services fee 1,960,677 847,778 1,540,601
Unrealized depreciation on forward foreign currency
contracts held, at value (Notes 1 and 4) -- 85,640 --
Payable for securities loaned (Note 5)51,007,502 50,875,000 77,008,111
Other accrued expenses 759,988 427,291 640,963
_________________________________________________________________
___________________Total liabilities126,238,273 70,261,440159,208,887
_________________________________________________________________
___________________Net assets applicable to outstanding capital
stock $4,410,366,640$1,924,133,614$3,395,789,861
_________________________________________________________________
___________________Represented by
_________________________________________________________________
___________________Capital stock - authorized 10,000,000,000
shares for each Fund of $.01 par value ($.001 for
Managed Fund); outstanding, 165,932,549,
163,185,830 and 214,029,796 shares,
respectively $ 1,659,326 $ 1,631,858$ 214,030
Additional paid-in capital 3,711,811,849 1,859,726,5472,803,469,070
Undistributed (excess of distributions over)
net investment income (1,844,434) 859,236 (832,174)
Accumulated net realized gain (loss) on investments
in securities 559,367,177 (12,652,956)120,081,035
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies (Note 4)13
9,372,722 74,568,929 472,857,900
_________________________________________________________________
___________________Total - representing net assets applicable to
outstanding
capital stock $4,410,366,640$1,924,133,614$3,395,789,861
_________________________________________________________________
___________________Net asset value per share of outstanding
capital stock $ 26.58 $
11.79 $ 15.87
_________________________________________________________________
___________________See accompanying notes to financial
statements.
PAGE
Statements of assets and liabilities (continued)
Retirement Annuity Mutual Funds
Feb. 29, 1996 (Unaudited)
MoneyshareInternational Aggressive
Fund Equity Growth
Fund Fund
Assets
_________________________________________________________________
______________________________
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated
issuers (identified cost, $244,939,219;
$1,569,390,672 and $1,404,334,982, respectively)$244,939,219$1,716,580,830
$1,741,688,884
Cash in bank on demand deposit 106,934 -- 54,729
Receivable for investment securities sold -- 20,308,779 13,943,656
Dividends and accrued interest receivable127,785 3,415,285 623,353
Unrealized appreciation on forward foreign currency contracts
held, at value (Notes 1 and 4) -- 19,454 --
U.S. government securities held as collateral for
securities loaned (Note 5) -- 57,173,182 --
Receivable (for capital stock sold) from:
IDS Life accounts 754,993 5,543,278 524,012
IDS Life of New York accounts 90,698 305,669 67,905
_________________________________________________________________
______________________________
Total assets 246,019,629 1,803,346,4771,756,902,539
_________________________________________________________________
______________________________
Liabilities
_________________________________________________________________
_____________________________
Disbursements in excess of cash on demand deposit -- 491,736 --
Dividends payable to separate accounts (Note 1) 952,138 8,490,504 3,608,831
Payable for investment securities purchased -- 14,757,853 37,788,331
Accrued investment management and services fee 90,487 1,030,343 751,321
Unrealized depreciation on forward foreign currency
contracts held, at value (Notes 1 and 4) -- 1,543,773 --
Payable for securities loaned (Note 5) -- 97,466,682 --
Payable (for capital stock redeemed) to:
IDS Life accounts 472,690 -- --
IDS Life of New York accounts -- -- --
Other accrued expenses 88,279 861,382 345,646
_________________________________________________________________
_____________________________
Total liabilities 1,603,594 124,642,273 42,494,129
_________________________________________________________________
_____________________________
Net assets applicable to outstanding capital stock$244,416,035$1,678,704,204
$1,714,408,410
_________________________________________________________________
_____________________________
Represented by
_________________________________________________________________
_____________________________
Capital stock - authorized 10,000,000,000
shares for each Fund of $.01 par value;
outstanding, 244,435,704; 126,837,271
and 108,416,290 shares, respectively$ 2,444,357 $
1,268,373 $ 1,084,163
Additional paid-in capital 241,972,447 1,527,561,4911,270,859,391
Excess of distributions over net investment income --(1,041,953) (7,425)
Accumulated net realized gain (loss) on investments
in securities (769) 5,155,785105,118,379
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies --145,760,508 337,353,902
_________________________________________________________________
______________________________
Total - representing net assets applicable to outstanding
capital stock $244,416,035$1,678,704,204$1,714,408,410
_________________________________________________________________
______________________________
Net asset value per share of outstanding capital stock$
1.00 $ 13.24$
15.81
_________________________________________________________________
_______________________________
See accompanying notes to financial statements.
PAGE
Statements of operations
Retirement Annuity Mutual Funds
Six months ended Feb. 29, 1996 (Unaudited)
Capital Special Managed
Resource Income Fund
Fund Fund
_________________________________________________________________
______________________________
Income:
Investment income
Dividends (net of foreign taxes withheld of $218,472 ;
$0 and $199,394, respectively) $29,291,700$ 281,109 $ 17,499,355
Dividends earned from affiliates 264,000 -- --
Interest (net of foreign taxes withheld of $150,579 for7,312,79073,538,696 38,399,655
Special Income Fund)
_________________________________________________________________
_______________________________
Total income 36,868,490 73,819,805 55,899,010
___________________________________________________________________________________________
_____
Expenses (Note 2):
Investment management services fee 12,974,373 5,782,836 9,979,265
Administrative services fee 306,662 155,312 169,050
Custodial fees and expenses 177,207 95,449 125,969
Directors and officers compensation 52,106 21,178 55,563
Printing and postage 125,000 70,000 100,000
Audit fees 15,000 14,000 15,000
Registration fees 273,333 50,000 145,000
Other 16,808 6,872 6,032
_________________________________________________________________
_______________________________
Total expenses 13,940,489 6,195,647 10,595,879
_________________________________________________________________
_______________________________
Investment income -- net 22,928,001 67,624,158 45,303,131
_________________________________________________________________
_______________________________
Realized and unrealized gain (loss) on investments - net
_________________________________________________________________
_______________________________
Net realized gain on security transactions (including
$5,200,944 realized gain on investments of affiliated
issuers for Capital Resource Fund) (Note 3) 569,327,781 12,481,424 168,197,932
Net realized gain on foreign currency transactions 27,896 1,251,539 --
_________________________________________________________________
_______________________________
Net realized gain on investments 569,355,677 13,732,963168,197,932
Net change in unrealized appreciation or depreciation
of investments and on translation of assets and liabilities
in foreign currencies (209,040,462) 17,273,078 44,690,360
_________________________________________________________________
_______________________________
Net gain on investments 360,315,215 31,006,041212,888,292
_________________________________________________________________
_______________________________
Net increase in net assets resulting
from operations $383,243,216 $98,630,199$258,191,423
_________________________________________________________________
_______________________________
See accompanying notes to financial statements.
PAGE
Statements of operations
Retirement Annuity Mutual Funds
Six months ended Feb. 29, 1996 (Unaudited)
Moneyshare International Aggressive
Fund Equity Growth
Fund Fund
_________________________________________________________________
_______________________________
Income:
Investment income
Dividends (net of foreign taxes withheld of $0;
$1,690,350 and $9,450, respectively)$ --$ 9,0
96,843 $ 1,894,567
Interest 6,908,919 3,473,459 9,557,736
_________________________________________________________________
_______________________________
Total income 6,908,919 12,570,302 11,452,303
_________________________________________________________________
_______________________________
Expenses (Note 2):
Investment management and services fee 651,641 6,652,279 4,939,399
Administrative services fee 12,297 132,165 130,653
Custodial fees and expenses 16,209 519,735 92,460
Directors and officers compensation 4,148 38,556 31,130
Printing and postage 12,000 100,000 50,000
Audit fees 9,000 15,000 12,000
Registration fees 125 95,000 60,000
Other 510 3,144 2,567
_________________________________________________________________
_______________________________
Total expenses 705,930 7,555,879 5,318,209
_________________________________________________________________
_____________________________
Investment income -- net 6,202,989 5,014,423 6,134,094
_________________________________________________________________
_______________________________
Realized and unrealized gain (loss) on investments -- net
_________________________________________________________________
_______________________________
Net realized gain on security transactions (Note 3) 190 21,220,452 135,633,618
Net realized gain (loss) on foreign currency transactions -- 17,864,513 (441)
_________________________________________________________________
_______________________________
Net realized gain on investments 190 39,084,965135,633,177
Net change in unrealized appreciation or depreciation of
investments and on translation of assets and liabilities
in foreign currencies -- 63,543,410 8,022,587
___________________________________________________________________________________________
_____
Net gain on investments 190 102,628,375143,655,764
_________________________________________________________________
_______________________________
Net increase in net assets resulting from operations$6,203,179$107,642,798 $149,789,858
_________________________________________________________________
_______________________________
See accompanying notes to financial statements.
</TABLE>
PAGE
<TABLE>
<CAPTION>
Statements of changes in net assets
Retirement Annuity Mutual Funds
Capital Resource Fund Special Income Fund
Six months ended Year endedSix months endedYear ended
2/29/96 8/31/95 2/29/96 8/31/95
(Unaudited) (Unaudited)
Operations and distributions
_________________________________________________________________
_______________________________
<S> <C> <C> <C> <C>
Investment income -- net $ 22,928,001$ 39,674
,769 $ 67,624,158$ 123,083,727
Net realized gain (loss) on investments569,355,677 383,135,166 13,732,963 (19,987,914)
Net change in unrealized appreciation or
depreciation of investments and on
translation of assets and liabilities
in foreign currencies (209,040,462)128,698,908 17,273,078 94,905,201
_________________________________________________________________
_______________________________
Net increase in net assets
resulting from operations383,243,216551,508,843 98,630,199 198,001,014
_________________________________________________________________
_______________________________
Distributions to shareholders from:
Net investment income (21,083,680)(39,584,237) (67,180,920)(121,683,870)
Net realized gain on investments(10,799,235)(383,078,138)(1,
251,539) (2,300,916)
Excess distributions of net
investment income (Note 1) (1,844,434)(52,587) -- (2,378,142)
Excess distributions of net realized
gain (Note 1) -- (977,300) -- --
_________________________________________________________________
_______________________________
Total distributions (33,727,349)(423,692,262)(68,432,459)(126,362,928)
_________________________________________________________________
_______________________________
Capital share transactions (Note 6)
_________________________________________________________________
_______________________________
Proceeds from sales 214,549,980436,224,431 134,758,137 86,906,199
Reinvested distributions at net asset value33,727,349423,692,26268,432,459 126,362,928
Payments for redemptions (32,140,668)(42,461,613) (12,454,006)(140,624,932)
_________________________________________________________________
_______________________________
Increase in net assets from capital
share transactions 216,136,661817,455,080 190,736,590 72,644,195
_________________________________________________________________
________________________________
Total increase in net assets565,652,528945,271,661 220,934,330 144,282,281
_________________________________________________________________
________________________________
Net assets at beginning of period3,844,714,1122,899,442,4511,7
03,199,284 1,558,917,003
_________________________________________________________________
________________________________
Net assets at end of period$4,410,366,640$3,844,714,112$1,924,
133,614 $1,703,199,284
_________________________________________________________________
________________________________
Undistributed (excess of distributions over)
net investment income$ (1,844,434)$ (1,844,321)$
859,236 $ 415,998
_________________________________________________________________
________________________________
See accompanying notes to financial statements.
PAGE
Statements of changes in net assets
Retirement Annuity Mutual Funds
Managed Fund Moneyshare Fund
Six months ended Year endedSix months endedYear ended
2/29/96 8/31/95 2/29/96 8/31/95
(Unaudited) (Unaudited)
Operations and distributions
_________________________________________________________________
________________________________
Investment income -- net$ 45,303,131$ 79,031,286$ 6,202,989$ 10,161,955
Net realized gain (loss) on investments168,197,932(49,425,540) 190 (152)
Net change in unrealized appreciation or
depreciation of investments and on
translation of assets and liabilities in
foreign currencies 44,690,360293,779,938 -- --
_________________________________________________________________
________________________________
Net increase in net assets resulting from
operations 258,191,423323,385,684 6,203,179 10,161,803
_________________________________________________________________
________________________________
Distributions to shareholders from:
Net investment income (44,689,837)(78,601,919) (6,202,989)(10,161,955)
Net realized gain on investments -- (198,282) -- --
Excess distributions of net investment
income (Note 1) (832,174) -- -- (126)
_________________________________________________________________
________________________________
Total distributions (45,522,011)(78,800,201) (6,202,989)(10,162,081)
_________________________________________________________________
________________________________
Capital share transactions (Note 6)
_________________________________________________________________
________________________________
Proceeds from sales 114,874,810265,867,838 86,019,512113,426,072
Reinvested distributions at net asset value45,522,01178,800,201 6,202,989 10,162,081
Payments for redemptions (21,493,028)(44,391,869) (74,747,622)(75,889,680)
_________________________________________________________________
________________________________
Increase in net assets from capital share
transactions 138,903,793300,276,170 17,474,879 47,698,473
_________________________________________________________________
________________________________
Total increase in net assets351,573,205544,861,653 17,475,069 47,698,195
_________________________________________________________________
________________________________
Net assets at beginning of period3,044,216,6562,499,355,003226
,940,966 179,242,771
_________________________________________________________________
________________________________
Net assets at end of period$3,395,789,861$3,044,216,656$244,41
6,035 $226,940,966
_________________________________________________________________
________________________________
Excess of distributions over net
investment income$ (832,174)$ (613,294)$
- -- $ --
_________________________________________________________________
________________________________
See accompanying notes to financial statements.
PAGE
Statements of changes in net assets
Retirement Annuity Mutual Funds
International Equity FundAggressive Growth Fund
Six months ended Year endedSix months endedYear ended
2/29/96 8/31/95 2/29/96 8/31/95
(Unaudited) (Unaudited)
Operations and distributions
_________________________________________________________________
________________________________
Investment income -- net $ 5,014,423$ 19,548,137$ 6,134,094$ 7,510,039
Net realized gain (loss) on investments39,084,965 (16,979,187)135,633,177 6,178,928
Net change in unrealized appreciation or
depreciation of investments and on translation
of assets and liabilities in foreign currencies 63,543,410(6,548,017) 8,022,587
270,146,371
_________________________________________________________________
________________________________
Net increase (decrease) in net assets resulting from
operations 107,642,798(3,979,067) 149,789,858283,835,338
_________________________________________________________________
________________________________
Distributions to shareholders from:
Net investment income --(17,257,772) (6,126,228)(7,502,171)
Net realized gain on investments(25,186,958)-- -- --
Excess distributions of net investment
income (Note 1) -- -- (7,425) (7,442)
_________________________________________________________________
________________________________
Total distributions (25,186,958)(17,257,772) (6,133,653)(7,509,613)
_________________________________________________________________
________________________________
Capital share transactions (Note 6)
_________________________________________________________________
________________________________
Proceeds from sales 144,798,766360,572,294 167,090,235383,256,895
Reinvested distributions at net asset value25,186,95817,257,772 6,133,653 7,509,613
Payments for redemptions (15,614,965)(26,008,343) (14,364,291)(17,849,325)
_________________________________________________________________
________________________________
Increase in net assets from capital share
transactions 154,370,759351,821,723 158,859,597372,917,183
_________________________________________________________________
________________________________
Total increase in net assets236,826,599330,584,884 302,515,802649,242,908
_____________________________________________________________________________________________
____
Net assets at beginning of period1,441,877,6051,111,292,7211,4
11,892,608 762,649,700
_________________________________________________________________
________________________________
Net assets at end of period$1,678,704,204$1,441,877,605$1,714,
408,410 $1,411,892,608
_________________________________________________________________
________________________________
Excess of distributions over net
investment income $ (1,041,953)$ (6,056,376)$
(7,425) $ (7,866)
_________________________________________________________________
________________________________
See accompanying notes to financial statements.
</TABLE>
PAGE
__________________________________________________
_______________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 hen 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, Special
Income Fund, Managed Fund, International Equity
Fund and Aggressive Growth 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. The Funds also may buy or write put
and call options on 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
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. In the statement of
operations, net realized gains or losses from
foreign currency transactions may arise from sales
of foreign currency, closed forward contracts,
exchange gains or losses realized between the
trade date and settlement dates on securities
transactions, and other translation gains or
losses on dividends, interest income and foreign
withholding taxes.
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. 29, 1996, investments in securities for
Special Income Fund included issues that are
illiquid. The Funds currently limit investments
in illiquid securities to 10% of the net assets,
at market value, at the time of purchase.
The aggregate value of such securities at Feb. 29,
1996, was $15,616,149,
which represents 0.8 percent of net assets for
Special Income Fund. Pursuant
to guidelines adopted by the board, 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. 29, 1996, dividends were declared of $.064
per share for Capital Resource Fund, $.076 for
Special Income Fund, $.109 for Managed Fund, $.004
for Moneyshare Fund, $.067 for International
Equity Fund and $.033 for Aggressive Growth Fund
payable March 1, 1996. 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, Managed Fund,
International Equity Fund and Aggressive Growth
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
Effective March 20, 1995, the Funds entered into a
new agreement with IDS Life for managing
investments, recordkeeping and other services that
are based solely on the assets of each Fund. 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,
0.61% to 0.535% for Special Income, 0.63% to 0.55%
for Managed, 0.51% to 0.44% for Moneyshare, 0.87%
to 0.795% for International Equity and 0.65% to
0.575% for Aggressive Growth.
IDS Life, in turn, pays to American Express
Financial Corporation (AEFC) a fee based on a
percentage of each Fund's average daily net assets
for the year. This fee is equal to 0.50% for
International Equity Fund and 0.25% 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 Funds
also pay custodian fees to American Express Trust
Company, an affiliate of IDS Life. The
reimbursement paid by Moneyshare Fund will be
limited to 0.25% of the Fund's average daily net
assets.
Also effective March 20, 1995, the Funds entered
into an Administrative Services Agreement with
AEFC. Under this agreement, each Fund pays AEFC
for administration and accounting services at a
percentage of each Fund's average daily net assets
in reducing percentages from 0.05% to 0.03%
annually for Capital Resource, 0.05% to 0.025% for
Special Income, 0.04% to 0.02% for Managed, 0.03%
to 0.02% for Moneyshare, 0.06% to 0.035% for
International Equity and 0.06% to 0.035% for
Aggressive Growth.
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 Funds
recognize the cost of payments during the time the
directors serve on the board. The retirement plan
expense for the six months ended Feb. 29, 1996
amounted to $23,354 for Capital Resource Fund,
$5,499 for Special Income Fund, $18,464 for
Managed Fund, $92 for Moneyshare Fund, $13,434 for
International Equity Fund and $12,857 for
Aggressive Growth Fund.
__________________________________________________
_______________3. Securities transactions
For the six months ended Feb. 29, 1996, cost of
purchases and proceeds from sales of securities
aggregated, respectively, $881,035,079 and
$863,823,862 for Moneyshare Fund; cost of
purchases and proceeds from sales of securities
(other than short-term obligations) aggregated,
respectively, $2,409,027,788 and $2,422,836,988
for Capital Resource Fund; $556,515,366 and
$341,029,148 for Special Income Fund;
$1,377,043,005 and $1,257,406,098 for Managed
Fund; $509,194,341 and $388,137,482 for
International Equity Fund and $1,126,660,158 and
$1,046,904,020 for Aggressive Growth 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 $427,354 for Capital Resource
Fund, $54,219 for Managed Fund and $121,196 for
Aggressive Growth Fund for the six months ended
Feb. 29, 1996.
__________________________________________________
_______________4. Foreign currency contracts
At Feb. 29, 1996, Special Income Fund and
International Equity Fund had entered into forward
foreign currency exchange contracts that obligate
the Funds to deliver currencies at a specified
future date. The gross unrealized appreciation
(depreciation) on these contracts is included in
the accompanying financial statements. The terms
of the open contracts are as follows:
<TABLE>
<CAPTION>
Special Income Fund
____________________________________________________________
__________________
Currency to Currency to UnrealizedUnrealized
Exchange datebe delivered be received appreciationdepreci
ation
________________________________________________________________
______________
<S> <C> <C> <C> <C>
May 15, 1996 35,482,700 24,154,323 $ -- $85,640
Deutsche Mark U.S. Dollar
____________________________________________________________
__________________
International Equity Fund
Currency to Currency to UnrealizedUnrealized
Exchange datebe delivered be received appreciationdepreci
ation
____________________________________________________________
__________________
Mar. 1, 1996 1,072,870 811,412$ -- $ 8,744
Australian Dollar U.S. Dollar
Mar. 1, 1996 2,542,563 1,652,947 -- 8,761
U.S. Dollar British Pound
Mar. 1, 1996 4,656,413 485,524,210 -- 34,574
U.S. Dollar Japanese Yen
Mar. 4, 1996 2,217,595 1,682,711 -- 12,529
Australian Dollar U.S. Dollar
Mar. 5, 1996 1,352,137 2,078,708 6,017 --
British Pound U.S. Dollar
Mar. 29, 1996 5,256,997 1,056,916 13,437 --
French Franc U.S. Dollar
July 31, 199666,601,340 40,340,000 -- 479,399
Dutch Guildr U.S. Dollar
July 31, 1996246,639,268 48,410,000 -- 712,423
French Franc U.S. Dollar
July 31, 1996 48,083,018 40,412,690 --
287,343
Swiss Franc U.S. Dollar
________________
$19,454$1,543,773
</TABLE>
____________________________________________________________
__________________
5. Lending of portfolio securities
Presented below is information regarding securities on loan
at Feb. 29, 1996.
<TABLE>
<CAPTION>
Capital Special International
Resource Income Managed Equity
______________________________________________________________________
______________
<S> <C> <C> <C> <C>
Value of securities on loan to brokers$50,161,525$49,000,500$70,877
,560 $93,427,471
______________________________________________________________________
______________
Collateral received for securities loaned:
Cash $46,419,600$50,875,000$ 56,718,85040,293,500
U.S. Government Securities, at value4,587,902 -- 20,289,261
57,173,182
______________________________________________________________________
______________
Total collateral received for securities
loaned $51,007,502$50,875,000$77,008,111$97,466,682
______________________________________________________________________
______________
</TABLE>
For the six months ended Feb. 29, 1996, income
from security lending transactions amounted to
$268,301, $156,473, $133,306 and $155,691 for
Capital Resource Fund, Special Income Fund,
Managed Fund and International Equity Fund,
respectively, and has been included with interest
income in the statement of operations.
The risks related to security lending
transactions are that the borrower may not provide
additional collateral when required or return the
securities when due.
__________________________________________________
_______________6. Capital share transactions
Transactions in shares of each Fund for the six
months ended Feb. 29, 1996 and the year ended Aug.
31, 1995 were as follows:
<TABLE>
<CAPTION>
Number of shares: Six months ended Feb. 29, 1996
________________________________________________________________________________
________________________
Capital Special InternationalAggressive
Resource Income ManagedMoneyshare Equity Income
________________________________________________________________________________
________________________
<S> <C> <C> <C> <C> <C> <C>
Shares at beginning of period157,440,979147,091,617205,056,931226,959,381
114,884,903 97,796,581
Sold 8,434,78811,372,0357,455,02286,024,845 11,191,384
11,165,308
Issued for reinvested
distributions 1,319,0965,769,1862,901,2586,203,5091,976,805 402,806
Redeemed (1,262,314)(1,047,008)(1,373,415)(74,752,031)(1,215,821)
(948,405)
________________________________________________________________________________
________________________
Net increase 8,491,57016,094,2138,972,86517,476,32311,952,36810,619,709
________________________________________________________________________________
________________________
Shares at end of period165,932,549163,185,830214,029,796244,435,704126,837,271
108,416,290
________________________________________________________________________________
_______
Number of shares: Year ended Aug. 31, 1995
________________________________________________________________________________
________________________
Capital Special InternationalAggressive
Resource Income ManagedMoneyshare Equity Income
________________________________________________________________________________
________________________
Shares at beginning of year123,760,195141,040,088183,064,969179,257,0438
6,049,715 66,571,368
Sold 18,048,3657,654,88019,490,950113,435,448 29,602,833
32,035,435
Issued for reinvested17,356,23011,415,9695,727,71610,162,9081,338,365638,223
distributions
Redeemed (1,723,811)(13,019,320)(3,226,704)(75,896,018)(2,106,010)
(1,448,445)
________________________________________________________________________________
________________________
Net increase 33,680,7846,051,52921,991,96247,702,33828,835,18831,225,213
________________________________________________________________________________
________________________
Shares at end of year157,440,979147,091,617205,056,931226,959,381114,884,903
97,796,581
________________________________________________________________________________
_______
</TABLE>
__________________________________________________
_______________7. Tax loss carryforward
For federal income tax purposes, Special Income
Fund, Managed Fund, International Equity Fund and
Aggressive Growth Fund, had capital loss
carryovers at Aug. 31, 1995 of $20,031,747,
$47,700,266, $11,050,244 and $29,350,034,
respectively, which, if not offset by subsequent
capital gains, will expire in 2000 through 2004.
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.
__________________________________________________
_______________8. Financial highlights
The tables below show certain important
information for evaluating each Fund's results.
PAGE
<TABLE>
<CAPTION>
Capital Resouce Fund
Financial highlights
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*
1996** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period$24.42$23.43 $24.58 $23.90 $23.15 $17.54
_______________________________________________________________
___________________Income from investment operations:
Net investment income .14 .29 .29 .23 .21 .40
Net gains on securities (both realized
and unrealized) 2.23 3.70 1.56 1.89 1.75 6.61
_______________________________________________________________
___________________Total from investment operations2.37 3.99 1.85 2.12 1.96 7.01
_______________________________________________________________
___________________Less distributions:
Dividends from net investment income(.13) (.29) (.29) (.23) (.21) (.40)
Distributions from realized gains (.07) (2.71) (2.71) (1.21) (1.00) (1.00)
Excess distributions from net investment
income (.01) -- -- -- -- --
_______________________________________________________________
___________________Total distributions(.21)(3.00)(3.00) (1.44) (1.21) (1.40)
_______________________________________________________________
___________________Net asset value, end of period$26.58 $24.42 $23.43 $24.58
$23.90 $23.15
_______________________________________________________________
___________________
Ratios/supplemental data
1996** 1995 1994 1993 1992 1991
Net assets, end of period
(in millions) $4,410 $3,845 $2,899 $2,308 $1,681 $1,191
Ratio of expenses to average
daily net assets .68%# .69%# .68% .68% .70% .70%
Ratio of net income to average
daily net assets 1.11%# 1.22%# 1.20% 0.94% 0.91% 1.94%
Portfolio turnover rate
(excluding short-term
securities) 61% 88% 85% 65% 63% 74%
_______________________________________________________________
___________________Total return*** 9.71% 17.18% 7.61% 8.87% 8.54% 40.68%
_______________________________________________________________
___________________*For a share outstanding throughout the
year. Rounded to the nearest cent.
**Six months ended Feb. 29, 1996 (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.
</TABLE>
PAGE
<TABLE>
<CAPTION>
Special Income Fund
Financial highlights
Fiscal year ended August 31,
Per share income and capital changes*
1996** 1995 1994 19931992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period$11.58$11.05 $12.08 $11.26 $10.72 $10.10
_______________________________________________________________
___________________Income from investment operations:
Net investment income .44 .88 .84 .85 .90 .97
Net gains (losses) on securities (both
realized and unrealized) .21 (.56) (.99) .82 .54 .62
_______________________________________________________________
___________________Total from investment operations .65 1.44 (.15) 1.67 1.44 1.59
_______________________________________________________________
___________________
Less distributions:
Dividends from net investment income(.43) (.87) (.85) (.85) (.90) (.97)
Distributions from realized gains (.01) (.02) (.02) - - -
Excess distributions from net investment
income - (.02) (.01) - - -
Total distributions (.44) (.91) (.88) (.85) (.90) (.97)
_______________________________________________________________
___________________Net asset value, end of period 11.79 $11.58 $11.05 $12.08
$11.26 $10.72
_______________________________________________________________
___________________Ratios/supplemental data
1996** 1995 1994 1993 1992 1991
Net assets, end of period
(in millions) $1,924 $1,703 $1,559 $1,551 $1,136 $800
Ratio of expenses to
average daily net assets .68%# .68% .67% .69% .71% .70%
Ratio of net income to
average daily net assets 7.37%# 8.08% 7.20% 7.41% 8.22% 9.31%
Portfolio turnover rate
(excluding short-term securities) 19% 56% 57% 77% 92% 97%
_______________________________________________________________
___________________Total return*** 5.61% 13.75%(1.30)% 15.47% 13.96%
16.54%
_______________________________________________________________
___________________*For a share outstanding throughout the
period. Rounded to the nearest cent.
**Six months ended Feb. 29, 1996 (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.
</TABLE>
<TABLE>
<CAPTION>
Managed Fund
Financial highlights
Fiscal year ended August 31,
Per share income and capital changes*
1996** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period$14.85$13.65 $14.32 $13.08$12.59 $10.93
_______________________________________________________________
___________________Income from investment operations:
Net investment income .22 .40 .47 .49 .56 .58
Net gains (losses) on securities (both
realized and unrealized) 1.02 1.20 (.26) 1.60 .95 2.11
_______________________________________________________________
___________________Total from investment operations1.24 1.60 .21 2.09 1.51 2.69
_______________________________________________________________
___________________Less distributions:
Dividends from net investment income(.22) (.40) (.47) (.49) (.56) (.58)
Distributions from net realized gains -- -- (.41) (.36) (.46) (.45)
_______________________________________________________________
___________________Total distributions(.22)(.40) (.88) (.85) (1.02) (1.03)
_______________________________________________________________
___________________Net asset value, end of period$15.87 $14.85 $13.65 $14.32
$13.08 $12.59
_______________________________________________________________
___________________
Ratios/supplemental data
1996** 1995 1994 1993 1992 1991
Net assets, end of period (in millions)$3,396$3,044$2,499$1,858 $1,169 $810
Ratio of expenses to
average daily net assets .66%# .68% .68% .69% .71% .70%
Ratio of net income to
average daily net assets 2.80# 2.96% 3.46% 3.70% 4.35% 4.86%
Portfolio turnover rate (excluding
short-term securities) 43% 72% 79% 58% 50% 52%
_______________________________________________________________
___________________Total return*** 8.35% 11.94% 1.51% 16.33% 12.14% 25.24%
_______________________________________________________________
___________________*For a share outstanding throughout the
period. Rounded to the nearest cent.
**Six months ended Feb. 29, 1996 (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.
</TABLE>
PAGE
<TABLE>
<CAPTION>
Moneyshare Fund
Financial highlights
Fiscal year ended August 31,
Per share income and capital changes*
1996** 1995 1994 1993 1992 1991
<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 .03 .05 .03 .03 .04 .07
_______________________________________________________________
___________________Total from investment
operations .03 .05 .03 .03 .04 .07
_______________________________________________________________
___________________Less distributions:
Dividends from net investment
income (.03) (.05) (.03) (.03) (.04) (.07)
_______________________________________________________________
___________________Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
$1.00
_______________________________________________________________
___________________Ratios/supplemental data
1996** 1995 1994 1993 1992 1991
Net assets, end of period
(in millions) $244 $227 $179 $180 $246 $285
_______________________________________________________________
___________________Ratio of expenses to average
daily net assets .59%# .59% .57% .60% .60% .57%
_______________________________________________________________
___________________Ratio of net income to average
daily net assets 5.16%# 5.23% 3.12% 2.67% 3.93% 6.55%
_______________________________________________________________
___________________Total return*** 3.00% 5.27% 3.15% 2.73% 3.98% 6.77%
_______________________________________________________________
___________________*For a share outstanding throughout the
year. Rounded to the nearest cent.
**Six months ended Feb. 29, 1996 (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.
</TABLE>
<TABLE>
<CAPTION>
International Equity Fund
Financial highlights
Fiscal year ended August 31,
Per share income and capital changes*
1996*** 19951994 1993 1992**
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period$12.55$12.91 $11.60 $10.01 $10.00
____________________________________________________________
__________________Income from investment operations:
Net investment income .04 .17 .14 .15 .05
Net gains on securities (both
realized and unrealized) .86 (.37) 1.61 1.81 .01
____________________________________________________________
__________________Total from investment operations .90 (.20) 1.75 1.96 .06
____________________________________________________________
__________________Less distributions:
Dividends from net investment income-- (.16) (.08) (.15) (.05)
Distributions from realized gains(.17) -- (.29) (.22) -
Excess distributions from realized gains -- -- (.07) - -
Excess distributions from net investment income (.04)
____________________________________________________________
__________________Total distributions(.21)(.16) (.44) (.37) (.05)
____________________________________________________________
__________________Net asset value, end of year$13.24$12.55 $12.91 $11.60 $10.01
____________________________________________________________
__________________
Ratios/supplemental data
1996*** 19951994 1993 1992**
Net assets, end of period (in millions) $1,679 $1,442 $1,111 $291 $39
Ratio of expenses to average
daily net assets .98%# 1.03%
.98% 1.10% 1.57%#
Ratio of net income to average
daily net assets .65%# 1.56%
1.09% 1.37% 0.93%#
Portfolio turnover rate (excluding
short-term securities) 27% 38% 51% 62% 22%
____________________________________________________________
__________________Total return## 7.17% (1.77%) 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. 29, 1996 (Unaudited)
#Adjusted to an annual basis
##Total return does not reflect payment of the expenses that apply to the
variable accounts or any annuity charges.
</TABLE>
Aggressive Growth Fund
Financial highlights
Fiscal year ended August 31,
Per share income and capital changes*
1996*** 1995 1994 1993 1992**
[S] [C] [C] [C] [C] [C]
Net asset value, beginning of period$14.44$11.46 $11.68 $9.00 $10.00
____________________________________________________________
__________________Income from investment operations:
Net investment income .06 .08 .01 .02 .02
Net gains (losses) on securities (both
realized and unrealized) 1.37 2.98 (.22) 2.68 (1.00)
____________________________________________________________
Total from investment operations 1.43 3.06 (.21) 2.70 (0.98)
____________________________________________________________
Less distributions:
Dividends from net investment income(.06) (.08) (.01) (.02) (.02)
____________________________________________________________
Net asset value, end of period $15.81 $14.44 $11.46$11.68 $9.00
____________________________________________________________
__________________
Ratios/supplemental data
1996*** 1995 1994 1993 1992**
Net assets, end of period (in millions)$1,714$1,412 $763 $299 $57
Ratio of expenses to
average daily net assets .69%# .70% .69% .75% .98%#
Ratio of net income to
average daily net assets 0.80%# 0.72% 0.14% 0.28% 0.21%#
Portfolio turnover rate (excluding
short-term securities) 84% 116% 59% 55% 28%
____________________________________________________________
__________________
Total return## 9.90% 26.80% (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. 29, 1996 (Unaudited).
#Adjusted to an annual basis.
##Total return does not reflect payment of the expenses that
apply to the variable accounts or any annuity charges.
[/TABLE]
PAGE
<TABLE>
<CAPTION>
Retirement Annuity Mutual Funds (Percentages represent value of
August 31, 1995 investments compared to total net assets)
Capital Resource Fund
Investment in securities of unaffiliated issuers
Bonds (2.4%)
Issuer Principal Value(a)
Amount
____________________________________________________________
__________________<S> <C> <C>
Foreign (0.9%)
Cemex (U.S. Dollar)
4.25% Cv 1997 20,000,000(e) $16,800,000
Rogers Communication (U.S. Dollar)
Zero Coupon Cv with attached put
5.51% 2013 50,000,000(g) 17,062,500
Total 33,862,500
________________________________________________________________________________________
_________
Health care services (0.5%)
Service Corp Intl
6.50% Cv 2001 12,000,000 19,695,000
____________________________________________________________
__________________Media (1.0%)
Comcast
1.125% Cv 2007 75,000,000 39,750,000
____________________________________________________________
__________________Total bonds
(Cost: $89,146,099) $ 93,307,500
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Common & preferred stocks & warrants (89.9%)
Issuer Shares Value(a)
____________________________________________________________
__________________<S> <C> <C>
Aerospace & defense (0.4%)
General Dynamics 300,000 $ 15,787,500
____________________________________________________________
__________________Airlines (0.6%)
Southwest Airlines 850,000 21,993,750
____________________________________________________________
_________________
Automotive & related (0.5%)
General Motors 400,000 18,800,000
____________________________________________________________
__________________Banks and savings & loans (5.2%)
Bank of New York 300,000 13,050,000
First Chicago
$5.50 Cv Pfd 1,492,700 32,093,050
NBD Bancorp 700,000 25,025,000
Northern Trust 1,350,000 60,750,000
Norwest 700,000 21,087,500
State Street Boston 1,324,200 48,829,875
Total 200,835,425
____________________________________________________________
__________________Beverages & tobacco (5.6%)
American Brands 1,000,000 42,000,000
RJR Nabisco 4,200,000 119,700,000
UST 2,000,000 54,500,000
Total 216,200,000
____________________________________________________________
__________________Chemicals (0.7%)
Browning Ferris
$7.25 Cv Pfd 225,000 8,015,625
Sigma-Aldrich 400,000 19,200,000
Total 27,215,625
____________________________________________________________
__________________Computers & office equipment (11.4%)
Apple Computer 2,000,000 86,000,000
Automatic Data Processing 800,000 52,000,000
Compaq Computer 300,000(b) 14,325,000
First Data 400,000 23,350,000
Fiserv 800,000(b) 22,800,000
FTP Software 205,000(b) 4,766,250
Hewlett-Packard 250,000 20,000,000
HNC Software 300,000(b) 7,462,500
Hummingbird Communications 250,000(b) 8,218,750
Network General 300,000(b) 10,556,250
Novell 3,900,000(b) 70,200,000
Pitney Bowes 1,000,000 40,625,000
Policy Mgmt Systems 600,000(b) 29,700,000
Reynolds & Reynolds Cl A 1,100,000 35,337,500
Technology Solutions 300,000(b) 4,687,500
Transaction Systems 250,000(b) 6,125,000
VIASOFT 295,000(b) 3,097,500
Total 439,251,250
_________________________________________________
_____________________________Energy (1.0%)
Mobil 250,000 23,812,500
Unocal 500,000 14,562,500
Total 38,375,000
____________________________________________________________
__________________Financial services (2.7%)
Block (H&R) 1,450,000 56,550,000
Travelers 1,000,000 48,000,000
Total 104,550,000
____________________________________________________________
__________________Food (4.2%)
General Mills 945,000 48,785,625
Kellogg 102,900 6,945,750
Nabisco Holdings Cl A 525,000 15,028,125
Pioneer Hi-Bred Intl 500,000 21,500,000
Quaker Oats 400,000 13,900,000
Tootsie Roll 800,000 31,900,000
Wrigley, Wm Jr 500,000 22,562,500
Total 160,622,000
____________________________________________________________
__________________Foreign (6.1%)
Amway Asia Pacific 300,000 11,925,000
Amway Japan Ltd ADR 500,000(b) 9,000,000
Astra 850,000(b) 28,191,100
Femsa Coke 1,100,000(b,f) 25,437,500
Fulcrum 60,000(b) 1,230,000
Groupo Casa Autrey ADR 1,000,000 17,250,000
Moore 500,000(f) 10,437,500
News Corp Ltd ADR 520,000 11,830,000
News Corp Ltd ADR Pfd 260,000 5,265,000
Panamerican Beverages 127,500 3,793,125
Renaissance Energy 125,000(b) 2,734,695
Repsol S. A. ADR 300,000 9,487,500
Reuters Holdings ADR 300,000 15,712,500
Rogers Communication Cl B 1,600,000(b) 16,384,896
Royal Dutch Petroleum 110,000 13,117,500
Seagram Ltd 600,000 22,200,000
Sony ADR 450,000 24,806,250
Tamro 1,500,000 6,087,000
Total 234,889,566
____________________________________________________________
__________________Health care (5.3%)
Benson Eyecare 850,000(b) 7,862,500
Bristol-Myers Squibb 300,000 20,587,500
Centocor 1,500,000(b) 18,187,500
Genentech 500,000(b) 23,562,500
Guidant 400,000(f) 10,100,000
IVAX 750,000 19,218,750
Mylan Labs 1,178,850 26,966,194
Stryker 900,000 37,575,000
Warner-Lambert 300,000 27,112,500
Watson Pharmaceuticals 300,000(b) 12,412,500
Total 203,584,944
____________________________________________________________
__________________Health care services (6.5%)
Beverly Enterprises 1,300,000(b) 17,225,000
Cardinal Health 1,172,800 62,744,800
Caremark Intl 1,000,000 20,750,000
Charter Medical 825,000(b) 16,603,125
Foundation Health 500,000(b) 17,312,500
Gulf South Medical Supply 250,000(b) 7,062,500
Health Management Systems 300,000(b) 9,225,000
Horizon Healthcare 250,000(b) 5,468,750
Retirement Care 250,000(b) 4,187,500
Service Corp Intl 470,000 16,450,000
Stewart Enterprises Cl A 700,000 22,312,500
United Healthcare 1,000,000 42,250,000
Universal Health Services Cl B 260,300(b) 8,947,813
Total 250,539,488
____________________________________________________________
__________________Household products (1.1%)
Dial Arizona 400,000 9,600,000
Newell 1,000,000 25,000,000
Playtex Products 600,000(b) 5,925,000
Total 40,525,000
____________________________________________________________
__________________Industrial machines & services (3.9%)
Caterpillar 400,000 26,850,000
General Signal 700,000 24,850,000
Giddings & Lewis Wisc 1,250,000 20,468,750
Greenfield Industries 400,000 13,500,000
Illinois Tool Works 250,000 15,312,500
Stewart & Stevenson 300,000 9,562,500
WMX Technologies 1,300,000 38,187,500
Total 148,731,250
____________________________________________________________
__________________Industrial transportation (0.4%)
Arnold Industries 800,000 14,300,000
____________________________________________________________
__________________Insurance (5.5%)
ACE Limited 1,000,000 30,750,000
Aetna Life & Casualty 300,000 20,475,000
American Intl Group 450,000 36,281,250
Horace Mann Educators 1,000,000 28,375,000
Reliance Group Holdings 50,000 393,750
UNUM 2,000,000 96,000,000
Total 212,275,000
____________________________________________________________
__________________Leisure time & entertainment (2.1%)
Carnival Cl A 400,000 8,700,000
Circus Circus Enterprises 341,700(b) 11,190,675
Gaylord Entertainment Cl A 315,000 8,741,250
Harrah's Entertainment 400,000(b) 12,750,000
Intl Game Technology 1,100,000 15,675,000
Primadonna Resorts 900,000(b) 18,225,000
Station Casinos 300,000(b) 5,812,500
Total 81,094,425
____________________________________________________________
__________________Media (12.7%)
ACS Enterprises 400,000(b) 7,250,000
American Telecasting 350,000(b) 3,762,500
Comcast Cl A 1,850,000 39,312,500
Cox Communications 600,000(b) 11,850,000
Dun & Bradstreet 564,100 32,647,287
Gannett 675,000 36,112,500
Information Resources 600,000(b) 7,725,000
Jacor Communications 551,000(b) 9,160,375
Liberty Media Cl A 1,925,000(b) 51,132,812
Marvel Entertainment Group 1,500,000(b) 21,562,500
People's Choice TV 300,000(b) 5,775,000
Reader's Digest Cl A 2,000,000 92,500,000
Tele-Communications Cl A 5,225,000(b) 96,662,500
Time Warner 1,000,000 42,125,000
Turner Broadcasting Cl B 950,000 29,212,500
Viacom Wts C 350,000(b) 1,487,500
Total 488,277,974
____________________________________________________________
__________________Metals (--%)
Webco Industries 141,700(b) 921,050
____________________________________________________________
__________________Multi-Industry (2.1%)
General Electric 725,000 42,684,375
Interim Services 325,000(b) 8,450,000
Minnesota Mining & Manufacturing 300,000 16,387,500
Romac 63,300(b) 1,028,625
Westinghouse Electric 1,000,000 13,625,000
Total 82,175,500
____________________________________________________________
__________________Paper & packaging (1.7%)
Champion Intl 300,000 16,987,500
Crown Cork & Seal 300,000(b) 13,500,000
Kimberly-Clark 300,000 19,162,500
Stone Container 750,000(b) 16,312,500
Total 65,962,500
____________________________________________________________
__________________Restaurants & lodging (0.6%)
Darden Restaurants 750,000(b) 7,687,500
McDonald's 400,000 14,600,000
Total 22,287,500
____________________________________________________________
__________________Retail (5.6%)
Arbor Drugs 500,000 9,375,000
Federated Department Stores 700,000(b) 18,900,000
Food Lion Cl A 3,000,000 17,250,000
Josten's 300,000 7,200,000
May Department Stores 300,000 12,712,500
Perrigo 650,000(b) 8,775,000
Quality Food Centers 825,000 20,418,750
Rite Aid 600,000 16,800,000
Ross Stores 300,000 4,800,000
Walgreen 1,550,000 37,975,000
Wal-Mart Stores 2,500,000 61,562,500
Total 215,768,750
____________________________________________________________
__________________Telecommunication equipment & services
(0.8%)
NEXTEL Communications Cl A 1,750,000(b) 31,281,250
____________________________________________________________
__________________
Textiles & apparel (0.4%)
Liz Claiborne 600,000 13,650,000
____________________________________________________________
__________________Utilities - telephone (2.8%)
AT & T 500,000 28,250,000
MCI Communications 600,000 14,437,500
Pacific Telesis Group 650,000 18,443,750
U.S. West 875,000 38,062,500
Windstar 500,000(b) 6,687,500
Total 105,881,250
____________________________________________________________
__________________Total common & preferred stocks & warrants
(Cost: $3,093,132,392) $3,455,775,997
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Short-term securities (1.9%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
____________________________________________________________
__________________<S> <C> <C> <C>
U.S. government agency (--%)
Federal Home Loan Mtge Corp Disc Nts
09-08-95 5.69 % $ 600,000 $ 599,337
Federal Natl Mtge Assn Disc Nts
09-11-95 5.68 700,000 698,902
Total 1,298,239
____________________________________________________________
__________________Commercial paper (1.9%)
A.I. Credit
09-11-95 5.74 4,600,000 4,592,704
AT & T
09-21-95 5.75 4,200,000 4,186,653
Bell Atlantic
09-14-95 5.74 9,700,000 9,679,964
Ciesco
09-13-95 5.75 6,500,000 6,487,607
Colgate Palmolive
09-19-95 5.76 7,000,000(c) 6,979,945
Goldman Sachs
09-12-95 5.75 1,000,000 998,252
Metlife Funding
09-21-95 5.75 6,000,000 5,980,900
Pepsico
09-28-95 5.76 2,500,000(c) 2,489,275
Pitney Bowes
09-20-95 5.75 3,100,000 3,090,625
Reed Elsevier
09-12-95 5.75 9,800,000(c) 9,782,872
Safeco Credit
09-13-95 5.76 4,900,000 4,890,625
Sandoz
09-22-95 5.75 3,900,000(c) 3,886,964
SW Bell Telephone
09-08-95 5.76 1,300,000 1,298,549
Toyota Motor
09-01-95 5.75 4,400,000 4,400,000
Transamerica Financial
09-27-95 5.77 3,500,000 3,485,490
Total 72,230,425
____________________________________________________________
__________________Total short-term securities
(Cost: $73,528,664) $ 73,528,664
____________________________________________________________
__________________Total investments in securities of
unaffiliated issuers
(Cost: $3,255,807,155) $3,622,612,161
________________________________________________________________________________________
_____
</TABLE>
<TABLE>
<CAPTION>
Investments in securities of affiliated issuers (d)
Common stocks (6.6%)
Issuer Shares Value(a)
____________________________________________________________
__________________<S> <C> <C>
Bolle America 325,000(b) 2,884,375
Career Horizons 525,000(b) 13,125,000
CIBER 340,000(b) 7,990,000
Community Psych Centers 2,629,300 30,894,275
Coram Healthcare 3,875,000(b) 18,890,625
DAKA Intl 300,000(b) 7,987,500
Envoy 600,000(b) 6,300,000
FPA Medical Management 400,000(b) 4,400,000
HCC Insurance 500,000(b) 15,500,000
Health Management 650,000(b,f) 8,815,625
Insurance Auto Auctions 1,100,000(b) 14,025,000
NBTY 1,425,000(b) 8,460,938
Norton McNaughton 715,000(b) 15,193,750
Owens & Minor 2,100,000 30,450,000
PMT Services 475,000(b) 8,906,250
Regency Health Services 1,100,000(b) 12,650,000
Renaissance Solutions 350,000(b) 6,912,500
Spiegel Cl A 810,000 9,618,750
SysteMed 1,275,000(b) 8,128,125
Ventritex 1,150,000(b) 23,287,500
____________________________________________________________
__________________Total investments in securities of
affiliated issuers
(Cost: $272,811,155) $ 254,420,213
____________________________________________________________
__________________Total investments in securities
(Cost: $3,528,618,310)(h) $3,877,032,374
____________________________________________________________
__________________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)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% or more of the outstanding
voting securities of the issuer.
(e)Represents a security sold under Rule 144A which is
exempt from registration under the Securities Act of 1933,
as amended. This security has 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 Aug. 31, 1995, the cost of securities for federal
income tax purposes was $3,537,538,476 and the aggregate
gross unrealized appreciation and depreciation based on that
cost was:
Unrealized appreciation . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. $435,636,636
Unrealized depreciation . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. (96,142,738)
____________________________________________________________
__________________Net unrealized appreciation . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . $339,493,898
____________________________________________________________
__________________</TABLE>
PAGE
<TABLE>
<CAPTION>
Retirement Annuity Mutual Funds (Percentages represent value of
Feb. 29, 1996 (Unaudited) investments compared to total net assets)
Special Income Fund
Bonds (95.1%)
Issuer Coupon Maturity Principal Value(a)
rate year amount
____________________________________________________________
__________________<S> <C> <C> <C> <C>
U.S. government obligations (15.0%)
Resolution Funding Corp 8.13 % 2019$ 48,059,000 $ 55,992,099
U.S. Treasury Bonds 7.25 2016 12,700,000 13,626,846
7.50 2016 40,000,000 44,026,800
8.125 2019 50,000,000 58,763,000
U.S. Treasury Notes 5.875 2005 50,000,000(h) 49,000,500
6.375 2002 14,000,000 14,359,660
7.50 2001 50,000,000 53,997,000
Total $289,765,905
________________________________________________________________________________
__________
Mortgage backed securities (17.8%)
Federal Home Loan Mtge Corp 8.00 2024 4,588,333 4,703,041
8.00 2024 5,451,430 5,587,715
9.00 2007 13,102,175 13,798,294
9.00 2025 3,713,025 3,898,676
Collateralized Mtge Obligation3.24 2023 6,101,857 3,563,546
7.00 2022 10,455,000 10,335,290
7.00 2022 12,940,000 12,438,057
8.50 2022 10,000,000 10,615,400
Inverse Floater 3.64 2024 16,150,000(g) 10,160,611
Federal Natl Mtge Assn 6.00 2024 9,492,540 8,920,045
6.00 2026 20,174,109 18,913,227
6.50 2010 13,853,299 13,723,494
6.50 2023 67,949,263 65,571,039
6.50 2025 24,575,025 23,714,900
8.00 2021 832,279 854,126
8.00 2022 5,657,462 5,805,970
8.50 2007 13,496,311 14,090,958
8.50 2023 11,093,158 11,530,007
9.00 2005 27,564,443 29,046,032
9.00 2024 11,582,235 12,183,122
Collateralized Mtge Obligation
Inverse Floater 3.29 2024 13,627,812(g) 7,077,877
3.30 2023 7,244,751 (g)5,041,622
Government Natl Mtge Assn 6.00 2023 19,230,036 18,118,347
6.00 2024 23,546,838 22,185,596
Adjustable Rate Mortgage 7.00 2024 8,743,233 8,901,704
Structured Asset Securities Corp
Collateralized Mtge Obligation 6.76 20282,500,000
2,505,078
Total 343,283,774
See accompanying notes to investments in securities
_________________________________
_____________________________________________Aerospace &
defense (0.3%)
BE Aerospace 9.875 2006 5,000,000(d) 5,150,000
____________________________________________________________
__________________Airlines (1.2%)
AMR 9.50 2001 4,500,000 5,023,440
9.75 2021 5,000,000 5,852,500
Delta Air Lines
Sr Deb 10.375 2011 6,250,000 7,485,188
United Air Lines 10.67 2004 4,500,000 5,330,475
Total 23,691,603
________________________________________________________________________________
__________
Automotive & related (2.0%)
Ford Motor Credit 7.50 2003 5,000,000 5,269,800
GMAC 5.95 1998 10,000,000 9,998,900
7.85 1997 20,000,000 20,763,400
Mascotech
Cv 4.50 2003 3,500,000 2,778,125
Total 38,810,225
________________________________________________________________________________
_______
Banks and savings & loans (1.9%)
BankAmerica 7.50 2002 7,500,000 7,897,050
First Bank Systems 6.875 2007 11,500,000 11,599,780
Fleet/Norstar Fin'l 9.00 2001 5,000,000 5,597,550
9.90 2001 5,000,000 5,755,550
Norwest
Sr Nts 6.38 2002 6,650,000 6,658,579
Total 37,508,509
________________________________________________________________________________
________
Building materials (2.0%)
AAF McQuay
Sr Nts 8.875 2003 10,000,000 10,100,000
Centex 9.05 1996 5,000,000 5,025,650
Georgia-Pacific 8.125 2023 5,000,000 4,905,000
Masco 9.00 2001 5,000,000 5,620,250
Peters (JM) 12.75 2002 1,380,000 1,321,350
Southdown
Sub Nts 14.00 2001 3,000,000 3,307,500
Total 30,279,750
________________________________________________________________________________
__________
Chemicals (0.4%)
G-I Holdings
Zero Coupon 11.37 1998 1,820,000(k) 1,467,375
Sub Nts 10.00 2006 1,733,100 1,798,091
General Chemical 9.25 2003 5,000,000 5,187,500
Total 8,452,966
________________________________________________________________________________
___________
Computers & office equipment (0.2%)
Softkey Intl
Cv 5.50 2000 5,000,000(b,d)4,175,000
____________________________________________________________
__________________Electronics (0.4%)
Berg Electronics 11.375 2003 3,000,000(d) 3,330,000
Thomas & Betts 6.50 2006 4,500,000(d) 4,369,140
Total 7,699,140
____________________________________________________________
__________________Energy (2.2%)
Honam Oil 7.125 2005 9,000,000(d) 8,879,310
Occidental Petroleum
Medium-term Nts 10.98 2000 5,000,000 5,859,700
with attached put 9.25 2019 8,725,000 10,540,411
Oryx Energy 10.00 2001 5,000,000 5,479,200
PDV America 7.875 2003 7,500,000 6,853,800
Triton Energy
Zero Coupon 9.75 1996 5,000,000(l) 4,812,500
Total 42,424,921
____________________________________________________________
__________________Financial services (2.2%)
Developers Div Realty 7.00 1999 1,500,000 1,494,375
First Union REIT
Sub Nts 8.875 2003 4,000,000 3,560,000
GPA Delaware 8.75 1998 3,000,000 2,985,000
Household Finance
Sr Sub Nts 9.55 2000 6,500,000 7,267,585
Liberty Property Trust
Cv 8.00 2001 1,250,000 1,351,563
Malan Realty REIT
Cv 9.50 2004 2,750,000(d) 2,337,500
Mutual Risk Management
Cv with attached put 7.03 2015 9,000,000 3,847,500
Olympic Financial 13.00 2000 6,500,000 7,044,375
Salomon 8.91 1998 5,000,000 5,040,400
Standard Credit Card 8.625 2002 6,590,000 6,753,366
Total 41,681,664
________________________________________________________________________________
___________
Food (0.2%)
Specialty Foods 7.27 2001 1,000,000(d) 468,750
Zero Coupon 11.25 2003 4,000,000(d,l)3,350,000
Total 3,818,750
____________________________________________________________
__________________Foreign (23.7%)(c)
Alcan Aluminum
(U.S. Dollar) 8.875 2022 6,750,000 7,397,865
Asian Pulp & Paper
(U.S. Dollar) 11.75 2005 7,000,000 6,947,500
Banca Italy N.Y.
(U.S. Dollar) 8.25 2007 5,000,000 5,239,700
BNCE
(U.S. Dollar) 7.25 2004 10,000,000 8,100,000
British Air
(British Pound)
$5.75 Cv 8.82 2006 2,000,000 3,153,940
Bulgaria
(U.S. Dollar) 2.00 2012 15,000,000 4,968,750
Carter Holt Harvey
(U.S. Dollar) 8.875 2004 5,000,000 5,628,600
City of Helsinki
(U.S. Dollar) Sr Nts 7.95 2006 2,000,000(d,e)1,952,500
(U.S. Dollar) 8.40 2007 1,800,000(d,e)1,775,250
(U.S. Dollar) 8.45 2006 1,200,000(d,e)1,197,000
(U.S. Dollar) 8.70 2006 1,600,000(d,e)1,600,480
(U.S. Dollar) 9.20 2006 1,500,000(d,e)1,526,625
Doman Industries
(U.S. Dollar) 8.75 2004 5,000,000 4,768,750
Empresas La Moderna
(U.S. Dollar) 11.375 1999 3,000,000(d) 2,977,500
Ford Capital BV
(U.S. Dollar) 9.875 2002 5,000,000 5,842,800
Govt of Canada
(Canadian Dollar) 7.64 2001 17,000,000 14,255,896
Govt of Poland
(U.S. Dollar) 6.81 2024 16,750,000(j) 14,415,469
(U.S. Dollar) Stepup Nts 3.75 2014 34,300,000(d) 25,574,938
(U.S. Dollar) Stepup Nts 2.75 2024 15,000,000(j) 8,062,500
(U.S. Dollar) Zero Coupon 3.23 1996 14,500,000 5,049,218
Groupe Videotron
(U.S. Dollar) 10.625 2005 2,000,000 2,200,000
Guang Dong Enterprise
(U.S. Dollar) 8.75 2003 7,500,000(d) 7,007,025
Gulf Canada Resources
(U.S. Dollar) 9.00 1999 5,000,000 5,087,500
Hydro Quebec
(U.S. Dollar) 8.50 2029 20,000,000 22,015,400
Korea Electric Power
(U.S. Dollar) 7.75 2013 4,300,000 4,348,375
MacMillan Bloedel
(U.S. Dollar) 8.50 2004 7,500,000 8,156,100
Magna Intl
(U.S. Dollar) 5.00 2002 2,500,000 2,512,500
Mass Transit Railway
(U.S. Dollar) 7.25 2005 5,000,000 5,044,150
News America Holdings 7.50 2000 7,000,000 7,257,250
(U.S. Dollar) 8.875 2023 7,000,000 7,648,410
(U.S. Dollar) 12.00 2001 5,000,000 5,497,550
Ogden
(Euro Dollar) Cv 6.00 2002 2,200,000 2,123,000
People's Republic of China
(U.S. Dollar) 9.00 1996 5,000,000 4,696,250
Petronas
(U.S. Dollar) Cv 7.75 2015 10,000,000(d) 10,346,600
Pueblo Extra Int'l
(U.S. Dollar) Sr Nts 9.50 2003 4,000,000 3,715,000
Qantas Air
(U.S. Dollar) 7.50 2003 7,500,000(d) 7,595,400
Reliance Industries
(U.S. Dollar) 8.125 2005 3,500,000(d) 3,523,905
Repap New Brunswick
(U.S. Dollar) 10.625 2005 2,000,000 1,945,000
Republic of Argentina
(U.S. Dollar) 2.43 2002 13,000,000 10,383,750
(U.S. Dollar) 5.00 2023 28,500,000 15,033,750
(U.S. Dollar) 6.81 2005 6,750,000 4,805,156
(U.S. Dollar) 7.125 2023 25,000,000 15,718,750
Republic of Brazil
(U.S. Dollar) C Bonds 4.00 2014 35,815,838 21,623,812
(U.S. Dollar) 4.25 2024 26,500,000 13,481,875
(U.S. Dollar) Inverse Floater 6.81 2024 9,500,000(g) 12,735,625
(U.S. Dollar) Inverse Floater 6.875 2012 5,000,000(g) 3,009,375
(U.S. Dollar) 7.25 2006 10,000,000 7,112,500
Republic of Columbia
(U.S. Dollar) 7.25 2004 5,300,000 5,083,866
(U.S. Dollar) 8.70 2016 6,000,000 5,748,600
Republic of Germany
(Deutsche Mark) 4.875 2002 33,000,000 24,031,590
Republic of Italy
(U.S. Dollar) 6.875 2023 7,500,000 6,907,800
State of Isreal
(U.S. Dollar) 6.375 2005 3,700,000 3,591,072
Rogers Cable Systems
(Canadian Dollar) 9.65 2014 2,700,000 1,781,301
Rogers Cantel Mobile
(U.S. Dollar) 10.75 2001 2,000,000 2,107,500
11.125 2002 1,000,000 1,077,500
Tarkett
(U.S. Dollar) 9.00 2002 4,000,000(d) 4,290,000
Telekom Malaysia
(U.S. Dollar) 7.875 2025 10,000,000(d) 10,417,100
United Kingdom Treasury
(British Pound) 8.00 2003 9,500,000 14,785,515
United Mexican States
(U.S. Dollar) 9.75 2001 7,000,000 6,720,000
U.S. Mexico
(U.S. Dollar) Series A 6.25 2019 4,500,000 2,770,313
(U.S. Dollar) Series B 6.25 2019 13,000,000 8,003,125
Series C
(U.S. Dollar) Inverse Floater 6.94 2019 4,000,000(b,g)2,845,000
WMC Finance USA
(U.S. Dollar) 7.25 2013 10,000,000 10,067,900
Total 455,287,471
____________________________________________________________
__________________Furniture & appliances (0.8%)
Black & Decker 6.625 2000 10,000,000 10,076,700
Interface 9.50 2005 5,000,000(d) 5,150,000
Total 15,226,700
________________________________________________________________________________
____________
Health care (0.5%)
Eli Lilly 6.77 2036 10,000,000 9,487,000
____________________________________________________________
__________________Health care services (1.7%)
Amerisource Distribution
Pay-in-kind -- 2005 1,996,338 (m) 2,208,449
Columbia/HCA Healthcare 7.69 2025 6,500,000 6,667,895
Foundation Health 7.75 2003 3,250,000 3,341,552
Magellan Health
Sr Sub Nts 11.25 2004 5,000,000(d) 5,600,000
Merit Behavioral 11.50 2005 2,000,000(d) 2,137,500
Tenet Healthcare
Sr Sub Nts 10.125 2005 8,800,000 13,098,000
Total 33,053,396
________________________________________________________________________________
____________
Household products (0.2%)
Revlon Consumer Products 9.375 2001 2,500,000 2,562,500
Sweetheart Cup
Sr Sub Nts 9.625 2000 2,000,000 2,082,500
Total 4,645,000
____________________________________________________________
__________________Industrial machines & services (0.9%)
ADT Operations 9.25 2003 3,500,000 3,745,000
Case 7.25 2005 5,000,000 5,597,859
Clark Equipment 9.75 2001 5,000,000 5,654,550
IDEX 9.75 2002 3,000,000 3,206,250
Total 18,203,659
____________________________________________________________
__________________Industrial transportation (0.7%)
Burlington Northern 7.00 2025 8,000,000 7,542,960
CSX
Medium-term Nts 9.23 1998 5,000,000 5,299,550
Total 12,842,510
____________________________________________________________
__________________Insurance (1.4%)
Americo Life 9.25 2005 4,500,000 4,443,750
Equitable 7.70 2015 5,000,000(d) 4,939,200
NAC Re
Cv 5.25 2002 1,750,000(d,e)1,723,750
Nationwide CSN Trust 9.875 2025 6,500,000(d) 7,332,845
Nationwide Mutual 7.50 2024 4,000,000(d) 3,719,040
New England Mutual
Credit Sensitive Nts 7.875 2024 5,000,000(d) 5,019,100
Total 27,177,685
____________________________________________________________
__________________Leisure time & entertainment (0.9%)
Bally's Park Place Funding
1st Mtge 9.25 2004 3,500,000 3,596,250
MGM Grand Hotel Finance 12.00 2002 3,000,000 3,307,500
Mohegan Tribal Gaming 13.50 2002 1,500,000(d) 1,803,750
Premier Parks 12.00 2003 2,500,000 2,643,750
Trump Holdings
Sr Nts 15.50 2005 2,500,000 2,781,250
Trump Taj Mahal
Pay-in-kind -- 1999 3,627,187(m) 3,740,537
Total 17,873,037
____________________________________________________________
__________________Media (3.2%)
Ackerley Communications
Sr Secured Nts 10.75 2003 2,500,000(d) 2,690,625
Cablevision Systems 10.75 2004 2,000,000 2,127,500
Continental Cablevision
Sr Deb 8.875 2005 5,000,000 5,575,000
Cox Communications 7.625 2025 10,000,000 10,133,700
Heritage Media 8.75 2006 2,000,000 1,985,000
Paramount Communications Ser A 7.00 2003 2,500,000 2,399,000
Plitt Theatres 10.875 2004 5,000,000 5,137,500
Scandinavian Broadcasting
Cv 7.25 2005 5,000,000(d) 5,200,000
Time Warner Entertainment 8.375 2033 7,500,000(d) 7,689,900
6.835 2000 2,500,000(j) 2,512,500
7.975 2004 1,500,000 1,547,655
8.11 2006 3,000,000 3,117,480
8.18 2007 3,000,000 3,128,880
United Artists 9.30 2015 5,000,000(d) 4,987,500
ViaCom Intl 8.00 2006 3,000,000 2,970,000
Total 61,202,240
____________________________________________________________
__________________Metals (0.5%)
Magma Copper 12.00 2001 5,000,000 5,537,500
Santa Fee Gold 8.375 2005 5,000,000 5,118,750
Total 10,656,250
____________________________________________________________
__________________Multi-industry (0.5%)
Fairchild Industries 12.25 1999 2,000,000 2,172,500
Mark IV Industries 8.75 2003 3,500,000 3,675,000
Talley Industries
Zero Coupon 12.25 1998 1,750,000(l) 1,378,125
Talley Mfg & Technology 10.75 2003 2,500,000 2,575,000
Total 9,800,625
_________________________________
_____________________________________________Natural gas
(1.1%)
Tenneco Credit 9.625 2001 10,000,000 11,413,100
Transco Energy 9.875 2020 6,000,000 7,348,740
Transtexas Gas
Sr Secured Nts 11.50 2002 2,500,000 2,543,750
Total 21,305,590
____________________________________________________________
__________________Paper & packaging (2.6%)
Chesapeake 9.875 2003 5,000,000 5,843,150
Crown Cork & Seal 8.00 2023 5,000,000 5,060,450
Federal Paperboard 10.00 2011 6,000,000 7,397,760
Gaylord
Zero Coupon 11.23 1996 5,500,000(l) 5,706,250
Plastic Container 10.75 2001 2,000,000 2,057,500
Pope & Talbot 8.375 2013 4,000,000 3,798,880
Scotia Pacific Holding 7.95 2015 6,822,720 6,869,040
Silgan
Sr Sub Nts 11.75 2002 2,000,000 2,162,500
Zero Coupon 13.25 1995 2,000,000(l) 1,980,000
Stone Container 12.625 1998 1,500,000 1,614,375
Total 49,437,405
________________________________________________________________________________
___________
Restaurants & lodging (0.6%)
Flagstar 10.875 2002 1,250,000 1,128,125
10.75 2001 8,750,000 7,896,875
Hammons (John Q) Hotel 8.875 2004 3,400,000 3,425,500
Total 12,450,500
____________________________________________________________
__________________Retail (2.0%)
Dairy Mart Stores Ser A 10.25 2004 1,500,000 1,335,000
Dayton Hudson 8.50 2022 3,000,000 3,043,950
Eye Care Center 12.00 2003 3,000,000 2,940,000
Kroger 9.25 2005 3,000,000 3,247,500
Musicland Stores 9.00 2003 6,500,000 3,705,000
Pathmark Stores 9.625 2003 5,000,000 4,850,000
Penn Traffic 9.625 2005 6,000,000 5,145,000
Penney (JC) 9.05 2001 5,000,000 5,605,700
Ralph's Grocery 10.45 2004 3,500,000 3,438,750
Revco 9.125 2000 2,000,000 2,145,000
Stop & Shop 9.75 2002 3,000,000 3,292,500
Total 38,748,400
________________________________________________________________________________
____________
Telecommunications equipment & services (1.1%)
American Communication Services
Zero Coupon 6.37 2005 6,000,000(d) 3,900,000
Celcaribe 13.50 2004 1,700,000(d,k)1,258,000
9.20 2004 1,450,000(d) 1,392,000
CenCall Communications
Zero Coupon 13.82 1999 4,000,000(l) 2,440,000
Comcast Cellular
Zero Coupon with attached put 9.53 1995 5,500,000(k) 4,138,750
GST Telecommunications 13.875 2005 745,000(d) 4,358,250
Intl Cable 11.00 2006 5,000,000(d) 3,006,250
Total 20,493,250
____________________________________________________________
__________________Textiles & apparel (0.8%)
Dominion Textiles 8.875 2003 4,000,000 3,990,000
JP Stevens 9.00 2017 2,500,000 2,484,375
VF 9.50 2001 5,000,000 5,695,450
WestPoint Stevens 8.75 2001 2,500,000 2,540,625
Total 14,710,450
____________________________________________________________
__________________Utilities - electric (4.7%)
Arizona Public Service 8.75 2024 2,500,000 2,675,975
Boston Edison 9.875 2020 5,000,000 5,496,600
Cleveland Electric 9.50 2005 6,000,000 6,053,100
Long Island Lighting 9.625 2024 9,000,000 9,063,270
Louisiana Power & Light
Sale Lease-Backed Obligation 10.67 2017 2,500,000 2,692,100
Midland Cogeneration Venture 10.33 2002 1,928,772 2,063,786
10.33 2002 1,661,496 (d)1,777,801
11.75 2005 5,000,000 5,362,500
Niagara Mohawk Power 7.75 2006 10,500,000 9,568,860
North Atlantic Energy 9.05 2002 4,718,000 4,956,825
Pacific Gas & Electric 7.25 2026 6,000,000 5,670,540
RGS Funding AEGCO
Sale Lease-Backed Obligation 9.82 2022 2,485,153 3,071,500
RGS Funding IME
Sale Lease-Backed Obligation 9.82 2022 2,485,315 3,071,499
Sithe Independent Funding 9.00 2013 7,500,000(d) 7,821,150
Texas-New Mexico Power 11.25 1997 3,877,000 3,998,156
1st Mtge 9.25 2000 3,500,000 3,753,750
Texas Utilities 9.70 2002 6,000,000 6,972,180
Texas Utilities Electric
1st Mtge 9.75 2021 6,350,000 7,152,894
Total 91,222,486
____________________________________________________________
__________________Utilities - telephone (1.5%)
Bell Telephone Company of Pennsylvania 7.375 203310,000,000
9,746,300
GTE 10.25 2020 7,000,000 8,142,540
Geotek Comm
Zero Coupon Cv 7.10 2005 5,000,000(d,k)2,825,000
New England Tel & Tel 9.00 2031 7,500,000 8,296,875
Total 29,010,715
____________________________________________________________
__________________Miscellaneous (0.3%)
Coty 10.25 2005 1,500,000(h) 1,616,250
Jitney Jungle
Sr Nts 12.00 2006 2,000,000 2,000,000
KinderKare Learning Center 10.375 2001 3,000,000 3,176,250
Total 6,792,500
________________________________________________________________________________
____________
Total bonds
(Cost: $1,752,839,506) $1,829,421,576
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Stocks and Other (0.7%)
____________________________________________________________
__________________Issuer Shares Value(a)
____________________________________________________________
__________________<S> <C> <C>
ABN Amro Holdings
6% Cv Preferred 41,100 $ 1,823,319
Celcaribe
Common 276,420(b,d) 317,883
Crown Cork
1.885% Cv Preferred 62,500 3,023,438
Dairy Mart
Warrants 10,000 13,300
Envirodyne
Common 90,890(b) 272,670
Eye Care Center
Warrants 3,000(b) 30,000
First Nationwide Bank
11.50% Preferred 25,000 2,837,500
Great Bay Power
Common 28(b) 238
Geotek
Common 150,000(b) 675,000
Methanex
Common 200,000(b) 1,525,000
Nat'l Health Investors
8.50% Cv Preferred 40,000 1,185,000
Security Pacific
1.75% Cv Preferred 73,500 1,966,125
Southdown
Warrants 30,000(b,e) 127,500
Specialty Foods
Common 15,000(b) 11,250
Triangle Wire Cable
Common 84,444(b,e) 84,444
__
____________________________________________________________
________________Total common & preferred stocks & warrants
(Cost: $15,776,302) $13,892,667
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Short-term securities (5.4%)
____________________________________________________________
__________________Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
____________________________________________________________
__________________<S> <C> <C> <C>
U.S. government agency (0.2%)
Federal Home Loan Mtge Corp Disc Note
03-20-96 5.15% $4,300,000 $ 4,288,358
____________________________________________________________
__________________Commercial paper (4.9%)
Aon
03-08-96 5.22 5,400,000 5,394,540
03-18-96 5.23 3,500,000 3,491,389
AT&T
04-04-96 5.24 7,100,000 7,064,997
Barclays US Funding
03-07-96 5.26 2,100,000 2,098,166
Beneficial
03-04-96 5.26 3,400,000 3,398,512
Deutsche Financial
03-08-96 5.23 3,500,000 3,496,454
USL Capital
03-26-96 5.22 4,800,000 4,782,667
04-02-96 5.21 1,800,000 1,791,696
Gateway Fuel
03-25-96 5.22 5,000,000 4,982,667
Krediet
03-14-96 5.25 4,200,000 4,192,068
Lincoln National
03-13-96 5.23 2,100,000(f) 2,096,353
Northern State
03-25-96 5.20 5,800,000 5,779,971
PepsiCo
03-15-96 5.23 3,200,000 3,193,529
03-28-96 5.20 2,300,000 2,291,064
Reed Elsevier
03-20-96 5.22 2,000,000(f) 1,994,511
Siemens
03-08-96 5.41 2,200,000 2,197,699
03-19-96 5.22 6,000,000 5,984,400
03-28-96 5.23 3,900,000 3,884,790
04-03-96 5.20 5,100,000 5,075,783
Toyota Motor
03-06-96 5.25 6,700,000 6,695,133
US WEST Communications
03-27-96 5.20 6,400,000 6,376,057
Wachovia
03-07-96 5.25 7,100,000 7,100,000
Total 93,362,446
____________________________________________________________
__________________Letter of credit (0.3%)
LC Bank of New York
03-07-96 5.37 5,800,000(f) 5,794,828
____________________________________________________________
__________________Total short-term securities
(Cost: $103,445,632) $ 103,445,632
____________________________________________________________
__________________Total investments in securities
(Cost: $1,872,061,440)(n) $1,946,759,875
____________________________________________________________
__________________
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.
(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. 29,
1996, 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
NAC Re Cv
5.25% 2002 01-20-94 1,870,000
Southdown Warrants
Exp 10-15-96 10-30-91 90,000
Triangle Wire Cable 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.
(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 Offered Rate) Index. Interest rate
disclosed is the rate in effect on Feb. 29, 1996.
(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
PAGE
Feb. 29, 1996.
(j) Interest rate varies to reflect current market
conditions; rate shown is the effective rate on Feb. 29,
1996.
(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) Pay-in-kind securities are securities in which the
issuer has the option to make interest payments in cash or
in additional securities. These securities issued as
interest usually have the same terms, including maturity
date, as the pay-
in-kind securities.
(n) At Feb. 29, 1996, the cost of securities for federal
income tax purposes was $1,869,575,000 and the approximate
aggregate gross unrealized appreciation and depreciation
based on that cost was:
Unrealized appreciation . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . $98,616,000
Unrealized depreciation . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,431,000)
____________________________________________________________
__________________Net unrealized appreciation . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . $77,185,000
____________________________________________________________
__________________</TABLE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
Retirement Annuity Mutual Funds (Percentages represent value of
Feb. 29, 1996 (Unaudited) investments compared to total net assets)
Managed Fund
Common & preferred stocks (60.5%)
Issuer Shares Value(a)
____________________________________________________________
__________________<S> <C> <C>
Aerospace & defense (4.3%)
Allied Signal 350,000 $ 19,468,750
Litton Inds 250,000(b) 12,665,400
Loral 800,000 37,700,000
Raytheon 800,000 40,100,000
United Technologies 350,000 37,625,000
Total 147,559,150
____________________________________________________________
__________________Airlines (0.2%)
Southwest Airlines 235,000 7,226,250
____________________________________________________________
__________________Banks and savings & loans (2.3%)
Barnett Banks 221,900 13,868,750
Citicorp 200,000 15,600,000
First Chicago 700,000 30,362,500
First Nationwide
$11.50 Pfd 20,000 2,270,000
Norwest 400,000 14,600,000
Total 76,701,250
____________________________________________________________
__________________Beverages & tobacco (1.0%)
Coca-Cola 400,000 32,300,000
____________________________________________________________
__________________Building materials (1.6%)
Clayton Homes 875,000 16,515,625
Tyco Intl 1,000,000 36,125,000
Total 52,640,625
____________________________________________________________
__________________Chemicals (0.2%)
Morton Intl 200,000 7,575,000
____________________________________________________________
__________________Communications equipment (0.8%)
ADC Telecommunications 300,000(b) 11,925,000
DSC Communcation 400,000(b) 12,200,000
Scientific Atlanta 150,000 2,512,500
Total 26,637,500
____________________________________________________________
__________________Computers & office equipment (4.4%)
American Power Conversion 1,000,000(b,g) 10,500,000
Compaq Computer 200,000(b) 10,125,000
Computer Associates 380,000 26,125,000
First Data 380,000 26,315,000
Hewlett Packard 200,000 20,150,000
Intl Business Machines 100,000 12,262,500
Microsoft 130,000(b) 12,829,375
Novell 200,000(b) 2,437,500
Oracle Systems 100,000(b) 5,200,000
3 Com 200,000(b) 9,775,000
Xerox 100,000 13,025,000
Total 148,744,375
____________________________________________________________
__________________Electronics (0.9%)
Intel 240,000 14,115,000
Vishay Intertechnology 600,000(b) 15,825,000
Total 29,940,000
____________________________________________________________
__________________Energy (1.5%)
Amoco 500,000 34,750,000
Mobil 150,000 16,443,750
Total 51,193,750
____________________________________________________________
__________________Financial services (1.8%)
Federal National Mortgage 720,000 22,770,000
Travelers 550,000 36,781,250
Total 59,551,250
____________________________________________________________
__________________Food (1.6%)
ConAgra 650,000 27,381,250
Hershey Foods 100,000 7,537,500
Pioneer Hi-Bred 285,000 15,354,375
Quaker Oats 100,000 3,437,500
Total 53,710,625
____________________________________________________________
__________________Foreign (c) (3.8%)
ASEA Class A 200,000(b) 20,092,600
Ericsson Class B 200,000 4,375,000
Nokia Preferred 530,000(b,g) 18,483,750
Northern Telecom 200,000 9,500,000
Sandoz Registered 20,000(b) 18,790,140
Singer 600,000 17,550,000
Tele Danmark 650,000(g) 19,175,000
Total 600,000 19,725,000
Total 127,691,490
____________________________________________________________
__________________Furniture & appliances (0.7%)
Black & Decker 670,000 22,612,500
____________________________________________________________
__________________Health care (3.6%)
American Home Products 300,000 29,550,000
Amgen 300,000 17,925,000
Medtronic 170,000 9,753,750
Merck 300,000 19,875,000
Pfizer 450,000 29,643,750
SmithKline Beecham 320,000 17,520,000
Total 124,267,500
____________________________________________________________
__________________Health care services (4.1%)
Cardinal Health 200,000 12,050,000
Columbia/HCA Healthcare 7000,000 38,325,000
PacifiCare Health
Systems Class B 250,000(b) 23,500,000
Service Intl 300,000 13,612,500
United Healthcare 800,000(b) 52,200,000
Total 139,687,500
____________________________________________________________
__________________Household products (2.5%)
Clorox 150,000 12,712,500
Gillette 500,000 27,062,500
Newell 400,000 11,100,000
Proctor & Gamble 430,000 35,260,000
Total 86,135,000
____________________________________________________________
__________________Industrial equipment & services (2.1%)
Amer Standard 400,000(b) 11,300,000
Deere 750,000 29,343,750
General Signal 270,000 9,821,250
Illinois Tool Works 170,000 11,198,750
York Int'l 300,000 9,575,000
Total 71,238,750
____________________________________________________________
__________________Industrial transportation (0.6%)
Union Pacific 300,000 19,800,000
____________________________________________________________
__________________Insurance (2.3%)
General Re 180,000 25,897,500
Progressive 205,300 9,443,800
Unum 700,000 41,212,500
Total 76,553,800
____________________________________________________________
__________________Leisure time & entertainment (0.4%)
Disney (Walt) 200,000 13,100,000
____________________________________________________________
__________________Media (1.2%)
Comcast
Class SPL 500,000 9,812,500
Time Warner 450,000 19,237,500
Turner Broadcasting Cl B 450,000 13,050,000
Total 42,100,000
____________________________________________________________
__________________Metals (0.7%)
Freeport Copper Cl B 500,000 16,312,500
Newmont Mining 150,000 8,531,250
Total 24,843,750
____________________________________________________________
__________________Multi-industry conglomerates (4.5%)
ALCO Standard 300,000 14,212,500
ALCO Standard
6.50% Cv Pfd 129,250 11,648,656
Emerson Electric 400,000 31,150,000
General Electric 850,000 64,175,000
Olsten 400,000 18,300,000
Westinghouse Electric 700,000 12,950,000
Total 152,436,156
____________________________________________________________
__________________Paper & packaging (1.4%)
Crown Cork & Seal 600,000(g) 28,275,000
Kimberly-Clark 275,000 21,003,125
Total 49,278,125
____________________________________________________________
__________________Real Estate Investment Trust (2.5%)
Bay Apartment 200,000 4,700,000
Dean Witter 400,000 21,500,000
Duke Realty 220,000 6,985,000
Equity Residential 300,000 9,525,000
Healthcare Property 200,000 6,700,000
Nationwide Health 200,000 8,400,000
ROC Communities 300,000 7,275,000
Shurgard Storage Center 200,000 5,350,000
Storage USA 180,000 5,715,000
Summit Properties 200,000 4,050,000
Weeks 200,000 5,225,000
Total 85,425,000
____________________________________________________________
__________________Restaurants & lodging (0.8%)
McDonalds 400,000 20,000,000
Wendy's Int'l 500,000 9,062,500
Total 29,062,500
____________________________________________________________
__________________Retail (1.9%)
CUC Int'l 930,000(b) 30,108,750
Home Depot 500,000 21,625,000
Pep Boys 400,000 12,000,000
Total 63,733,750
____________________________________________________________
__________________Utilities-electric (3.4%)
CMS 400,000 12,150,000
California Energy 500,000(b) 11,125,000
Duke Power 200,000 9,775,000
Edison Intl 800,000 14,000,000
FPL Group 400,000 17,850,000
General Public Utilities 350,000 11,681,250
Northern States Power 300,000 14,775,000
PECO Energy 300,000 8,475,000
Pinnacle West Capital 300,000 8,512,500
Southern 300,000 7,162,500
Total 115,506,250
____________________________________________________________
__________________Utilities-gas (0.5%)
Enron 500,000 18,312,500
____________________________________________________________
__________________Utilities - telephone (2.9%)
Airtouch Communications 730,000(b) 22,630,000
AT&T 400,000 25,450,000
Century Telephone 210,000 7,061,250
GTE 600,000 25,725,000
MCI Communications 600,000 17,550,000
Total 98,416,250
____________________________________________________________
__________________Total common & preferred stocks
(Cost: $1,593,176,656) $2,053,980,596
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Bonds (30.2%)
Issuer Coupon MaturityPrincipal Value(a)
rate year amount
____________________________________________________________
__________________U.S. government obligations (7.7%)
<S> <C> <C> <C> <C>
U.S. Treasury Bond 6.25 % 2023$ 6,500,000 $ 6,197,165
7.25 201612,000,000 12,875,760
8.875 201740,150,000 50,550,857
U.S. Treasury Notes 5.125 1998 4,000,000 3,959,880
5.375 199848,000,000 47,930,400
5.625 19974,200,000 4,215,204
5.75 200326,000,000 25,612,860
7.50 200536,100,000 39,416,146
7.75 200055,100,000 59,110,729
Resolution Funding Corp
Zero Coupon 6.61 201128,000,000 (f,g) 9,913,120
Total 259,782,121
____________________________________________________________
__________________Mortgage-backed securities (5.8%)
Federal Home Loan Mtge Corp6.50 202534,561,576 33,319,433
8.00 20244,820,831 4,950,415
Collateralized Mtge Obligation
Trust Series Z 6.50 20235,349,178 (j) 4,354,606
Federal Natl Mtge Assn 5.50 200929,377,800 28,046,692
6.00 20246,738,763 6,332,349
6.50 2010-2519,625,792 19,223,057
7.00 20269,900,000 9,788,625
7.40 200410,000,000 (g) 10,690,100
8.00 20226,136,907 6,298,001
8.50 20237,395,694 7,686,936
9.00 20244,548,935 4,784,933
Trust Series Z 7.00 20165,106,848 (j) 5,075,339
Collateralized Mtge Obligation
Trust Series Z 6.00 20246,729,762 (j) 5,171,553
7.00 20196,128,876 (j) 6,100,683
7.00 202213,335,176 (j) 12,310,101
7.50 20146,600,922 (j) 6,384,873
Govt Natl Mtge Assn 7.00 202424,938,364 24,681,250
Merrill Lynch Mtge Investors8.29 20212,000,000 (d) 1,808,750
Total 197,007,696
____________________________________________________________
__________________Aerospace & defense (0.2%)
Alliant Techsystems
Sr Sub Nts 11.75 2003700,000 (d) 781,375
BE Aerospace 9.875 20062,500,000 (d) 2,575,000
Northrup-Grumman 7.75 20163,750,000 (d) 3,734,850
Total 7,091,225
____________________________________________________________
__________________Airlines (0.7%)
AMR 9.75 20215,500,000 6,437,750
10.00 20212,500,000 2,984,550
Continental Air 6.94 20155,100,000 (d) 4,971,225
Delta 9.75 20215,050,000 5,907,743
United 9.75 20211,700,000 1,949,305
10.67 20041,200,000 1,421,460
Total 23,672,033
____________________________________________________________
__________________Automotive & related (0.3%)
GMAC
Medium Term Nts 5.95 19987,000,000 7,005,460
8.375 19971,400,000 1,445,570
Total 8,451,030
____________________________________________________________
__________________Banks and savings & loans (0.8%)
First Bank System 6.875 20078,600,000 8,637,066
First USA Bank
Medium Term Nts 6.88 19966,700,000 6,739,396
Norwest
Sr Nts 6.375 20025,800,000 5,807,482
Riggs Natl
Sub Nts 8.50 20064,900,000 5,102,125
Total 26,286,069
____________________________________________________________
__________________Building materials (0.3%)
AAF McQuay
Sr Nts 8.875 20033,000,000 3,030,000
Georgia Pacific 8.125 20233,000,000 2,943,000
Owens Corning Fiberglass 9.375 20121,500,000 1,719,645
Schuller Intl Group 10.875 20041,750,000 1,955,625
Total 9,648,270
____________________________________________________________
__________________Communications equipment (0.3%)
Celcaribe
Zero Coupon 2.14 20041,450,000 (d,f) 1,392,000
Comcast Cellular
Zero Coupon attached put9.45 20005,000,000 (f) 3,762,500
GST Telecommunications
Zero Coupon 13.875 2005550,000 (d,f) 3,217,500
Total 8,372,000
____________________________________________________________
__________________Computers & office equipment (0.5%)
Silicon Graphics
Zero Coupon Cv attached put 4.15 201320,000,000 (d,f) 10,300,000
Softkey
Cv 5.50 20008,000,000 (d) 6,680,000
Total 16,980,000
____________________________________________________________
__________________Electronics (0.1%)
Thomas & Betts 6.50 20064,500,000 (d) 4,369,140
____________________________________________________________
__________________Energy (0.4%)
Honam Oil 7.125 20055,750,000 (d) 5,672,892
Parker & Parsley 8.25 20074,200,000 4,357,122
Standard Oil 9.00 20194,000,000 4,444,640
Total 14,474,654
____________________________________________________________
__________________Energy equipment & services (0.3%)
Foster Wheeler 6.75 20058,600,000 8,502,734
____________________________________________________________
__________________Financial services (1.3%)
Associates Corp NA 6.375 200210,000,000 10,028,400
AVCO Financial 7.25 19994,750,000 4,916,155
Corporate Property Investors7.18 20132,200,000 (d) 2,153,316
General Electric Capital 8.65 20181,000,000 1,004,700
GPA Delaware 8.75 19981,900,000 1,890,500
Olympic Financial 13.00 20002,000,000 2,167,500
Salomon Brothers 6.75 20064,000,000 3,782,360
Salomon-Oracle ELK
Cv Pfd 7.25 199619,920,000 (i) 9,337,500
Salomon Hewlett-Packard ELK
Cv Pfd 5.25 199710,000,000 (i) 10,350,000
Total 45,630,431
____________________________________________________________
__________________Foreign (3.4%)(c)
Bank of China
(U.S. Dollar) 8.25 20142,500,000 2,385,350
BNCE
(U.S. Dollar) 7.25 20042,250,000 1,822,500
CAF
(U.S. Dollar) 7.10 20035,200,000 5,083,468
Clearnet Communications
(U.S. Dollar) 14.75 200526,000 (h) 1,534,000
Doman Inds
(U.S. Dollar) 8.75 20042,000,000 1,907,500
Empresas La Moderna
(U.S. Dollar) 11.375 19991,000,000 (d) 992,500
Gov't Certificates of Israel
(U.S. Dollar) 9.25 20013,000,000 3,306,000
Hanson Overseas
(U.S. Dollar) 6.75 20055,000,000 4,948,100
Hydro Quebec
(U.S. Dollar) 9.50 2030 2,500,000 3,048,550
KFW Int'l Finance
(U.S. Dollar) 8.00 20104,000,000 4,412,520
Korea Electric Power
(U.S. Dollar) 7.75 20132,100,000 2,123,625
Mass Transit Railway
(U.S. Dollar) 7.25 20056,600,000 6,658,278
Mexican U.S. Series A
(U.S. Dollar) 6.25 20193,500,000 (k) 2,154,687
Mexican U.S. Series D
(U.S. Dollar) 7.25 20191,500,000 (k) 1,066,875
Peoples Republic of China
(U.S. Dollar) 9.00 19962,500,000 2,348,125
Petronas
(U.S. Dollar) 7.75 20156,000,000 (d) 6,207,960
Poland
(Euro Dollar) 3.75 201412,950,000 (m) 9,655,844
(U.S. Dollar) 6.812 20243,400,000 2,926,125
Quno
(U.S. Dollar) 9.125 20052,500,000 2,593,750
Reliance Inds
(U.S. Dollar) 8.125 20051,000,000 (d) 1,006,830
Republic of Argentina
(U.S. Dollar) 6.813 20058,000,000 (k) 5,695,000
(U.S. Dollar) 5.00 20231,750,000 (k) 923,125
Republic of Brazil
(U.S. Dollar) 4.00 20147,959,069 (k) 4,805,288
(U.S. Dollar) 4.25 20243,500,000 1,780,625
(U.S. Dollar) 6.12 20241,500,000 (k) 931,875
(U.S. Dollar) 6.875 20124,100,000 (k) 2,467,688
Republic of Colombia
(U.S. Dollar) 7.25 20045,000,000 4,796,100
Republic of Italy
(U.S. Dollar) 6.875 20235,000,000 4,605,200
Republic of New Brunswick
(U.S. Dollar) 10.625 20051,400,000 1,361,500
Roche Holding
(U.S. Dollar)
Zero Coupon Cv attached put 6.65 2010 30,000,000 (d,f)
13,200,000
Rogers Cable System
(Canadian Dollar) 9.65 20145,000,000 3,298,706
State of Israel
(U.S. Dollar) 6.375 20051,850,000 1,795,536
Telekom Malaysia
(U.S. Dollar) 7.875 20253,000,000 (d) 3,125,130
Total 114,968,360
____________________________________________________________
__________________Furniture & appliances (0.1%)
Interface 9.50 20053,500,000 (d) 3,605,000
____________________________________________________________
__________________Health care (0.6%)
Johnson & Johnson 8.00 199810,000,000 10,119,700
Lilly (Eli) 6.77 20365,000,000 4,743,500
Schering-Plough
Zero Coupon 7.31 19965,000,000 (d,f) 4,803,100
Total 19,666,300
____________________________________________________________
__________________Health care services (0.5%)
Columbia Healthcare 7.69 20253,600,000 3,692,988
Foundation Health
Sr Nts 7.75 20036,600,000 6,785,922
La Petite Holdings 9.625 20011,200,000 1,107,000
Magellan Health
Sr Subs Cl A 11.25 20042,000,000 (d) 2,240,000
Merit Behavioral 11.50 20051,300,000 (d) 1,389,375
Tenet Healthcare
Sr Subs 10.125 20052,000,000 2,220,000
Total 17,435,285
____________________________________________________________
__________________Household products (0.1%)
Sweetheart Cup
Sr Sub Nts 9.625 20002,000,000 2,082,500
____________________________________________________________
__________________Industrial equipment & services (0.1%)
Case 7.25 20055,000,000 5,112,200
____________________________________________________________
__________________Industrial transportation (0.1%)
Burlington Northern 7.00 20254,100,000 3,865,767
Teekay Shipping 8.32 20081,000,000 1,005,000
Total 4,870,767
____________________________________________________________
__________________Insurance (1.2%)
Aetna Life & Casualty 7.25 20234,200,000 4,031,244
Amer United Life 7.75 20262,500,000 (d) 2,377,475
Americo Life 9.25 20051,600,000 1,580,000
Equitable Life 7.70 20152,450,000 (d) 2,420,208
Met Life 7.80 20256,900,000 (d) 6,883,026
MN Mutual Surplus 8.25 20252,700,000 (d) 2,865,429
Nationwide Mutual 7.50 20244,000,000 (d) 3,719,040
Credit Sensitive Nts 9.875 20245,000,000 (d) 5,640,650
New England Mutual
Credit Sensitive Nts 7.875 20242,000,000 (d) 2,007,640
Principal Mutual 8.00 20442,500,000 (d) 2,436,475
SunAmerica
Medium Term Nts 7.34 20055,000,000 5,147,700
Total 39,108,887
____________________________________________________________
__________________Leisure time & entertainment (0.2%)
Alliance Entertainment 11.25 20051,000,000 (d) 1,008,750
Hollywood Casino
Sr Nts 12.75 20031,600,000 1,528,000
Mohegan Tribal Gaming 13.50 20021,150,000 (d) 1,382,875
Premier Parks 12.00 20031,400,000 (d) 1,480,500
Trump Tajmahal
Zero Coupon Pay-in-kind-- 1999 2,250,000(f,l) 2,320,312
Total 7,720,437
____________________________________________________________
__________________Media (1.8%)
Aldelphia Communications 9.875 20051,500,000 1,466,250
CAI Wireless System
Sr Nts 12.25 20022,000,000 2,175,000
Comcast
Cv 3.375 200510,000,000 9,750,000
Cv 1.125 200710,000,000 5,175,000
Cox Communications 7.25 20155,000,000 4,922,050
7.625 20255,000,000 5,066,850
CS Wire
Zero Coupon 11.375 20062,000,000 (d,f) 4,500,000
News Amer Holdings 7.50 20004,000,000 4,147,000
7.70 20255,000,000 4,802,700
Paramount Communications 7.00 20032,000,000 1,919,200
Plitt Theatres 10.875 20043,000,000 3,082,500
Tele-Communications 7.875 20131,150,000 1,143,940
8.75 20233,500,000 3,528,665
Time Warner 8.375 20335,000,000 (d) 5,126,600
United Art Theater 9.30 20152,000,000 (d) 1,995,000
Viacom Intl 8.00 20064,000,000 3,960,000
Total 62,760,755
____________________________________________________________
__________________Multi-industry conglomerates (0.2%)
Crane 7.25 19992,000,000 2,047,440
Fairchild Inds 12.25 19991,600,000 1,738,000
Tally Inds 11.74 19982,500,000 (h) 1,968,750
Total 5,754,190
____________________________________________________________
__________________Paper & packaging (0.2%)
Gaylord 11.23 19962,150,000 (h) 2,230,625
Pope and Talbot 8.375 20133,800,000 3,608,936
Total 5,839,561
____________________________________________________________
__________________Retail (0.2%)
Bruno's
Sr Sub Nts 10.50 2005250,000 243,750
Penn Traffic 9.625 20053,500,000 3,001,250
Pep Boys 7.00 20054,200,000 4,241,958
Total 7,486,958
____________________________________________________________
__________________Restaurants & lodging (--%)
Flagstar 10.875 20021,500,000 (g) 1,353,750
____________________________________________________________
__________________Utilities - electric (1.5%)
Alabama Power 9.00 20242,200,000 2,331,890
Arizona Public Service
Sale-Leased Obligation Bond 8.00 2015 3,600,000 3,666,996
California Energy 9.875 20031,000,000 1,067,500
Cleveland Electric Illuminating 9.50 2005 2,000,000 2,017,700
Commonwealth Edison 8.375 20235,000,000 5,315,400
El Paso Electric 8.90 20062,750,000 2,818,750
First PV Funding 10.15 20163,000,000 2,945,850
Jersey Central Power & Light6.75 20257,200,000 6,544,368
Long Island Lighting 9.75 20212,500,000 2,523,575
Niagra Mohawk Power 7.75 20065,500,000 5,012,260
Pacific Gas & Electric 7.25 20265,000,000 4,725,450
Public Services Electric & Gas 6.75 2016 2,600,000 2,482,376
Salton Sea 7.84 20101,325,000 (d) 1,333,785
Sithe Independent Funding9.00 20131,500,000 (d) 1,564,230
Texas Utilities 5.875 19985,000,000 4,984,800
Wisconsin Electric Power 6.875 19952,800,000 2,591,932
Total 51,926,862
____________________________________________________________
__________________Utilities-gas (0.7%)
ARKLA 9.875 1997 5,000,000 5,191,000
Coastal 7.75 20351,250,000 1,222,763
10.25 20041,450,000 1,758,067
Columbia Gas System 7.32 20107,000,000 6,961,500
Transcontinental Energy 9.375 2001 5,000,000 5,597,600
Transtexas Gas
Sr Sub Nts 11.50 20022,000,000 2,035,000
Total 22,765,930
____________________________________________________________
__________________Utilities - telephone (0.2%)
AT&T
Zero Coupon Cv 0.00 19995,000,000 (d,f) 4,175,000
BellSouth Telecommunications7.00 19953,500,000 3,421,320
Total 7,596,320
____________________________________________________________
__________________Miscellaneous (0.4%)
Coty 10.25 20051,500,000 1,616,250
KinderKare Learning Center10.375 20012,750,000 2,911,563
Carco Auto
Asset-Backed Obligation7.875 19983,325,000 (d) 3,351,035
Norcal Waste System
Sr Nts 12.50 20052,000,000 2,095,000
Standard Credit Card Trust5.95 20043,000,000 2,902,950
8.625 20021,750,000 1,793,382
Total 14,670,180
____________________________________________________________
__________________Total bonds
(Cost: $1,007,438,486) $1,024,991,645
____________________________________________________________
__________________
Put options purchased (--%)
Issuer Number Exercise Expiration Value(a)
of price date
contracts
S&P 500 2,000 $590 March 96 $ 1,000,000
2,000 605 March 96 200,000
4,000 610 June 96 500,000
____________________________________________________________
__________________Total put options purchased
(Cost: $7,153,000) $ 1,700,000
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Short-term securities (10.2%)
____________________________________________________________
__________________Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
____________________________________________________________
__________________<S> <C> <C> <C>
U.S. government agency (0.2%)
Federal Natl Mtge Assn Disc Notes
03-04-96 5.13% $ 5,900,000 $ 5,897,483
____________________________________________________________
__________________Commercial paper (9.2%)
Alabama Power
05-16-96 5.11 5,800,000 5,733,630
Aon
03-08-96 5.22 3,300,000 3,296,663
03-22-96 5.54 4,000,000 3,986,705
Associates
03-01-96 5.49 5,700,000 5,700,000
05-06-96 5.18 2,600,000 2,574,112
AT&T
03-11-96 5.39 10,500,000 10,484,367
04-01-96 5.40 8,000,000 7,962,320
05-09-96 5.16 500,000 494,799
05-10-96 5.10 5,000,000 4,947,243
AVCO Financial Services
04-17-96 5.18 1,100,000 1,092,291
Barclays U.S. Funding
03-07-96 5.26 9,200,000 9,191,965
CAFCO
04-24-96 5.21 13,600,000 13,494,532
Cargill Financial
06-19-96 5.10 8,500,000 8,368,172
Chevron Transport
03-05-96 5.47 5,000,000(e) 4,996,978
Ciesco LP
03-22-96 5.40 4,100,000 4,086,352
Commercial Credit
04-09-96 5.23 7,000,000 6,960,567
Commerzbank U.S. Finance
04-22-96 5.35 8,300,000 8,234,349
Consolidated Rail
04-19-96 5.17 5,770,000(e) 5,727,626
CPC Intl
06-20-96 5.15 8,500,000(e) 8,365,927
Dean Witter
03-12-96 5.24 6,600,000 6,589,473
04-19-96 5.17 1,200,000 1,190,930
Fleet Funding
03-08-96 5.41 6,000,000(e) 5,993,723
03-15-96 5.44 4,500,000(e) 4,490,550
Ford Motor Credit
03-04-96 5.43 3,000,000 2,998,647
06-07-96 5.17 5,300,000 5,223,481
Gannett
03-11-96 5.22 5,100,000(e) 5,092,633
Household Finance
03-01-96 5.45 8,000,000 8,000,000
03-21-96 5.23 2,500,000 2,492,764
04-01-96 5.22 8,800,000 8,760,595
Intel
03-29-96 5.41 11,200,000 11,148,291
Kredietbank North Amer
03-11-96 5.22 10,600,000 10,584,689
Merrill Lynch
04-08-96 5.25 6,100,000 6,066,325
Metlife Funding
04-25-96 5.17 2,700,000 2,678,008
04-26-96 5.19 6,400,000 6,348,729
Mobil Australia Finance
03-20-96 5.23 1,100,000(e) 1,096,981
Morgan Stanley
03-06-96 5.45 5,500,000 5,495,860
Natl Australia Funding
04-08-96 5.43 8,700,000 8,649,903
NationsBank
05-21-96 5.12 7,900,000 7,900,000
Norfolk Southern
03-27-96 5.39 9,000,000(e) 8,963,985
PACCAR Financial
03-19-96 5.65 5,000,000 4,985,849
PepsiCo
03-28-96 5.19 4,900,000 4,881,000
Proctor & Gamble
05-22-96 5.10 6,700,000 6,617,357
Reed Elsevier
03-26-96 5.20 3,300,000(e) 3,288,129
SAFECO
03-26-96 5.36 1,900,000 1,892,981
04-19-96 5.17 3,100,000 3,077,664
Sandoz
03-15-96 5.57 4,600,000 4,589,306
03-21-96 5.68 6,000,000 5,980,670
03-25-96 5.39 5,800,000(e) 5,777,886
Societe Generale
North Amer
03-13-96 5.48 8,400,000 8,383,522
04-16-96 5.44 2,700,000 2,681,072
Toyota Motor Credit
03-29-96 5.25 6,600,000 6,573,153
Transamerica Finance
03-06-96 5.48 2,400,000 2,398,183
05-06-96 5.20 4,300,000 4,257,185
USAA Capital
03-15-96 5.41 4,000,000 3,991,647
05-24-96 5.08 2,100,000 2,073,473
US WEST Communications
05-23-96 5.14 5,800,000 5,727,597
Total 312,640,839
____________________________________________________________
__________________Repurchase (0.3%)
Daiwa Tri Party
03-01-96 5.47 10,000,000 10,000,000
____________________________________________________________
__________________Letters of Credit (0.5%)
Bank of Amer-
Aes Baarbers Point
03-08-96 5.22 7,800,000 7,792,113
04-04-96 5.26 8,800,000 8,756,450
Total 16,548,563
____________________________________________________________
__________________Total short-term securities
(Cost: $345,138,376) $ 345,086,885
____________________________________________________________
__________________Total investments in securities
(Cost: $2, 952,906,519)(n) $3,425,759,126
____________________________________________________________
__________________
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.
For debt securities, 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.
(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.
(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) This security is a collateralized mortgage obligation
that pays no interest or principal during its initial
accrual period
until payment of a previous series within the trust have
been paid off. Interest is accrued at an effective yield.
(k)Interest rate varies to reflect current market
conditions; rate shown is the effective rate on Feb.
29,1996.
(l) Pay-in-kind securities are securities in which the
issuer has the option to make interest payments in cash or
in additional securities. These securities issued as
interest usually have the same terms, including maturity
date, as the pay-in-kind securities.
(m) Interest rate varies, rate shown is the effective rate
on Feb. 29, 1996.
(n)At Feb. 29, 1996, the cost of securities for federal
income tax purposes was approximately $2,950,879,000 and the
approximate aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation . . . . . . . . . . . . .. . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . $510,344,000
Unrealized depreciation . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . (35,464,000)
____________________________________________________________
__________________Net unrealized appreciation. . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . $474,880,000
____________________________________________________________
__________________</TABLE>
PAGE
<TABLE>
<CAPTION>
Retirement Annuity Mutual Funds (Percentages represent value of
Feb. 29, 1996 (Unaudited) investments compared to total net assets)
Moneyshare Fund
____________________________________________________________
__________________Commercial paper (89.9 %)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
____________________________________________________________
__________________
<S> <C> <C> <C>
Banks and savings & loans (12.0 %)
BBV Finance Delaware
05-07-96 5.16% $4,400,000 $ 4,358,237
Kredietbank
North Amer Finance
03-11-96 5.23 9,500,000 9,486,251
NationsBank
04-08-96 5.42 5,000,000 5,000,000
04-11-96 5.44 5,000,000 5,000,000
PNB Bank
12-20-96 5.26 1,000,000 999,689
Societe Generale
03-13-96 5.48 4,600,000 4,591,674
Total 29,435,851
____________________________________________________________
__________________Commercial finance (4.6 %)
Ciesco LP
03-20-96 5.39 4,600,000(b) 4,587,011
03-22-96 5.40 1,700,000 1,694,695
05-07-96 5.15 5,000,000(b) 4,952,542
Total 11,234,248
____________________________________________________________
__________________Computer & office equipment (1.0 %)
Hewlett-Packard
07-19-96 4.98 2,500,000 2,452,556
____________________________________________________________
__________________Energy (4.3 %)
Alabama Power
04-04-96 5.18 6,700,000 6,667,475
Chevron Transport
03-04-96 5.43 3,800,000(b) 3,798,287
Total 10,465,762
____________________________________________________________
__________________Financial services (34.5 %)
Associates North Amer
04-23-96 5.19 7,400,000 7,343,894
05-06-96 5.18 4,000,000 3,962,380
PAGE
Beneficial
03-04-96 5.49 4,000,000 3,998,180
CAFCO
03-21-96 5.45 5,000,000(b) 4,985,000
Dean Witter, Discover
03-01-96 5.45 5,000,000 5,000,000
05-13-96 5.11 1,500,000 1,484,640
Fleet Funding
03-15-96 5.44 5,000,000(b) 4,989,500
General Electric Capital Services
03-18-96 5.39 6,200,000 6,184,336
03-22-96 5.25 1,800,000 1,794,508
Goldman Sachs
04-12-95 5.44 2,400,000 2,384,964
Merrill Lynch
04-25-96 5.31 6,000,000 5,950,999
05-13-96 5.39 3,000,000 2,967,758
Metlife Funding
04-25-96 5.17 6,200,000 6,151,408
04-26-96 5.19 4,900,000 4,860,746
Morgan Stanley Group
03-06-96 5.45 5,400,000 5,395,935
04-18-96 5.24 5,000,000 4,965,267
Penney (JC) Funding
04-18-96 5.17 5,500,000 5,462,380
Transamerica Finance
03-01-96 5.50 3,300,000 3,300,000
05-09-96 5.28 3,000,000 2,970,100
Total 84,151,995
____________________________________________________________
__________________Food (6.9%)
Cargill Global Funding
03-15-96 5.65 2,500,000(b) 2,494,575
CPC Intl
06-07-96 5.08 5,000,000(b) 4,931,944
06-20-96 5.12 2,500,000(b) 2,461,150
Sara Lee
03-27-96 5.43 4,000,000 3,984,487
Sysco
03-27-96 5.23 2,900,000(b) 2,889,109
Total 16,761,265
____________________________________________________________
__________________Health care (1.1%)
Sandoz
05-23-96 5.14 2,700,000(b) 2,668,377
____________________________________________________________
__________________Insurance (7.5 %)
Amer General Finance
03-14-96 5.24 4,800,000 4,790,969
Pacific Mutual Life
03-01-96 5.23 3,500,000 3,500,000
PAGE
Safeco Credit
03-26-96 5.36 3,200,000 3,188,178
03-26-96 5.40 4,000,000 3,985,139
03-28-96 5.39 3,000,000 2,987,962
Total 18,452,248
____________________________________________________________
__________________Media (2.0 %)
Gannett
04-10-96 5.39 5,000,000(b) 4,970,389
____________________________________________________________
__________________Transportation (3.2 %)
Norfolk Southern
03-22-96 5.45 4,000,000(b) 3,987,400
03-27-96 5.39 4,000,000(b) 3,984,573
Total 7,971,973
____________________________________________________________
__________________Utilities - Gas ( 3.8%)
Ameritech
06-07-96 5.17 4,800,000(b) 4,733,360
Southern California
03-29-96 5.38 4,500,000(b) 4,481,345
Total 9,214,705
____________________________________________________________
__________________Utilities - electric (5.1%)
Bayshore Fuel
04-24-96 5.21 6,500,000 6,449,592
Gateway Fuel
03-25-96 5.22 6,000,000 5,979,200
Total 12,428,792
____________________________________________________________
__________________Utilities - telephone ( 1.7%)
AT&T
05-30-96 5.31 4,100,000 4,046,597
____________________________________________________________
__________________Miscellaneous (2.2 %)
United Parcel Service
06-06-96 5.10 5,600,000 5,524,103
____________________________________________________________
__________________
Total commercial paper
(Cost: $219,778,861) $219,778,861
____________________________________________________________
__________________
Letters of credit (5.4 %)
International
ABN Amro-
Sci Systems
03-20-96 5.24 4,500,000 4,487,555
Credit Suisse-
Cafco Capital
03-22-96 5.23 5,000,000 4,984,746
Credit Suisse-
Cosco Cayman
03-18-96 5.61 1,700,000 1,695,496
03-27-96 5.24 2,000,000 1,992,431
____________________________________________________________
__________________Total letters of credit
(Cost: $13,160,228) $ 13,160,228
____________________________________________________________
__________________Certificates of deposit (4.9%)
International
ABN Amro Yankee
03-18-96 5.49 4,000,000 4,000,019
CIBC Yankee Callable
01-09-97 5.50 1,000,000 1,000,000
Commerzbank Yankee
05-21-96 5.12 5,000,000 5,000,111
Societe Generale Yankee Callable
02-24-97 5.35 2,000,000 2,000,000
____________________________________________________________
__________________Total certificates of deposit
(Cost: $12,000,130) $ 12,000,130
____________________________________________________________
__________________Total investments in securities
(Cost: $244,939,219)(c) $244,939,219
____________________________________________________________
__________________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.
(c) At Feb. 29, 1996 this cost also represents the cost of
securities for federal income tax purposes.
</TABLE>
PAGE
<TABLE>
<CAPTION>
Retirement Annuity Mutual Funds (Percentages represent value of
Feb. 29, 1996 (Unaudited) investments compared to total net assets)
International Equity Fund
____________________________________________________________
__________________
<S> <C> <C>
Common stocks (91.8%)
Issuer Shares Value(a)
____________________________________________________________
__________________Argentina (0.3%)
Multi-industry conglomerates
Perez Naviera B shares 967,280 $ 5,090,183
____________________________________________________________
__________________Australia (4.0%)
Banks and savings & loans (1.0%)
Westpac Banking 3,488,000 16,477,312
____________________________________________________________
__________________Energy (0.5%)
Broken Hill Proprietary 524,045 7,591,316
____________________________________________________________
__________________Metals (2.1%)
CRA 792,060 12,139,904
Pasminco 9,132,600 11,023,048
WMC Limited 1,976,000 12,703,704
___________
Total 35,866,656
____________________________________________________________
__________________Paper & packaging (0.4%)
Amcor 925,000(c) 6,717,350
_________________________________________________
_____________________________Brazil (0.6%)
Communications equipment
Telebras ADR 203,800(c) 10,699,500
____________________________________________________________
__________________Canada (1.5%)
Aerospace & defense (0.5%)
Bombardier Cl B 600,800 8,978,602
____________________________________________________________
__________________Communications equipment (0.5%)
BCE Mobile 250,300(b) 8,211,044
________________________________________________________________________________________
_
Electronics (0.5%)
Northern Telecom 177,300 8,421,750
____________________________________________________________
__________________France (7.4%)
Automotive & related (0.4%)
Peugeot 44,305(b) 6,630,864
____________________________________________________________
__________________Banks and savings & loans (2.3%)
Banque Nationale de Paris 341,000 13,198,746
Credit Commercial de France 522,000 24,856,596
____________
Total 38,055,342
____________________________________________________________
__________________Building materials (1.1%)
Lafarge-Coppee (Bearer) 179,523 12,354,234
Lafarge-Coppee Bonus Shares 81,677 5,620,766
____________
Total 17,975,000
____________________________________________________________
__________________Energy (1.1%)
Societe Nationale Elf Aquitaine 167,990 11,597,358
Total Petroleum Cl B 112,500(c) 7,429,275
____________
Total 19,026,633
____________________________________________________________
__________________Food (0.4%)
Danone 43,570 6,970,546
____________________________________________________________
__________________Insurance (0.5%)
Union des Assurances Federales 65,000 7,225,140
____________________________________________________________
__________________Metals (0.4%)
Usinor Sacilor 430,000(b) 6,725,630
____________________________________________________________
__________________Multi-industry conglomerates (1.1%)
Lyonnaise des Eaux Dumez 207,000 19,183,932
____________________________________________________________
__________________Retail (0.1%)
Casino Guichard Perrachon 59,366 2,062,137
____________________________________________________________
__________________Germany (4.3%)
Automotive & related (1.0%)
Daimler-Benz 30,400 16,790,011
____________________________________________________________
__________________Banks and savings & loans (1.2%)
Commerzbank 86,652(c) 19,815,579
____________________________________________________________
__________________Chemicals (0.6%)
Hoechst 30,200(c) 9,500,044
____________________________________________________________
__________________Retail (0.3%)
Karstadt 14,040(c) 5,475,333
____________________________________________________________
__________________Utilities-electric (0.5%)
Rwe Ag 206,000 8,563,420
____________________________________________________________
__________________Miscellancous (0.7%)
Degussa 33,200 11,975,738
____________________________________________________________
__________________Hong Kong (3.9%)
Banks and savings & loans (1.0%)
HSBC Holdings 1,022,800 16,404,689
____________________________________________________________
__________________Multi-industry conglomerates (1.7%)
Hutchison Whampoa 2,897,000 18,361,186
Swire Pacific Cl A 1,200,000 10,477,200
____________
Total 28,838,386
____________________________________________________________
__________________Real estate (0.9%)
Henderson Land 1,024,000 7,416,832
Sun Hung Kai Properties 941,000(b) 8,398,425
____________
Total 15,815,257
____________________________________________________________
__________________Retail (0.3%)
Dairy Farm Intl 5,500,000(c) 5,362,500
____________________________________________________________
__________________Indonesia (0.2%)
Multi-industry conglomerates
India Fund 350,000(b) 3,456,250
____________________________________________________________
__________________Italy (3.4%)
Automobiles & related (0.2%)
Fiat 1,310,000 4,119,950
____________________________________________________________
__________________Energy (1.0%)
Ente Nazionale Idrocarburi Spa 4,457,297 16,906,527
____________________________________________________________
__________________Insurance (0.5%)
INA 5,993,800 8,073,649
____________________________________________________________
__________________Communications equipment (1.7%)
Stet Risp 4,095,500 9,304,976
Telecom Italia 5,256,000 8,788,032
Telecom Italia Mobil 5,256,000 9,628,992
____________
Total 27,722,000
____________________________________________________________
__________________Japan (28.7%)
Banks and savings & loans (2.0%)
Sakura Bank 850,000 9,223,350
Sanwa Bank 455,000 8,359,260
Sumitomo Trust & Banking 1,300,000 16,211,000
____________
Total 33,793,610
____________________________________________________________
__________________Building materials (2.4%)
Daiwa Kosho Lease 880,000 9,214,480
Nihon Cement 2,300,000 15,324,900
Sho-Bond 180,000(b,c) 6,151,320
Taisei 1,601,000 10,438,520
____________
Total 41,129,220
____________________________________________________________
__________________Chemicals (0.8%)
Sekisui Chemical 1,014,000 12,933,570
____________________________________________________________
__________________Electronics (6.4%)
Matsushita Electric 1,400,000 22,388,800
Omron 328,000 7,268,480
Rohm 260,000(c) 15,468,700
Sanyo Electric 3,400,000 20,454,400
TDK 500,000 25,226,000
Yokogawa Electric 1,550,000 16,524,550
____________
Total 107,330,930
____________________________________________________________
__________________Health care (1.2%)
Banyu Pharmaceuticals 433,000 5,358,375
Sankyo Pharmaceuticals 670,000 15,434,120
____________
Total 20,792,495
____________________________________________________________
__________________Industrial equipment & services (2.9%)
Ishikawajima-Harima Heavy Inds 1,466,000 6,349,246
Mitsubishi Heavy Inds 2,800,000 22,680,000
Secom 310,000 19,358,260
____________
Total 48,387,506
____________________________________________________________
__________________Insurance (1.1%)
Tokio Marine & Fire 1,500,000 18,133,500
____________________________________________________________
__________________Metals (1.0%)
Hitachi Metals 1,400,000 16,924,600
____________________________________________________________
__________________Real estate (1.4%)
Mitsubishi Estates 620,000 7,554,080
Mitsui Fudosan 1,300,000 15,220,400
____________
Total 22,774,480
____________________________________________________________
__________________Retail (1.6%)
Amway Japan 85,000(c) 3,835,285
Autobocs Seven 40,000(b) 3,217,480
Family Mart 34,650 1,385,307
Ito-Yokado 180,000 10,075,140
Marui 472,000 9,075,616
____________
Total 27,588,828
____________________________________________________________
__________________Telecommunications (0.8%)
DDI 1,800 13,210,852
____________________________________________________________
__________________Textiles & apparel (0.6%)
Onward Kashiyama 700,000 10,395,000
____________________________________________________________
__________________Transportation (1.6%)
Nippon Express 1,500,000 13,779,000
Nippon Yusen 2,250,000 12,849,750
____________
Total 26,628,750
____________________________________________________________
__________________Wire & cable (3.3%)
Nippon Denso 1,215,000 24,172,425
NTN 2,250,000 15,057,000
Sumitomo Electric Inds 1,250,000 16,182,500
____________
Total 55,411,925
____________________________________________________________
__________________Miscellaneous (1.6%)
Itochu 2,969,000 19,895,269
Mitsubishi Material 1,192,000 6,210,320
____________
Total 26,105,589
____________________________________________________________
__________________Korea (0.4%)
Utilities-electric
Korea Electric Power ADR 300,000 7,275,000
____________________________________________________________
__________________Malaysia (1.8%)
Banks and savings & loans (0.3%)
Malayan Banking 471,500 4,310,925
____________________________________________________________
__________________Building materials (0.4%)
United Engineers 945,000 6,081,075
____________________________________________________________
__________________Leisure time & entertainment (0.5%)
Resorts World 1,444,000 8,102,284
____________________________________________________________
__________________Multi-industry conglomerates (0.4%)
Sime Darby 2,818,000 7,574,784
____________________________________________________________
__________________Utilities - telephone (0.2%)
Telekom Malaysia 496,000 4,262,128
____________________________________________________________
__________________Mexico (0.5%)
Banks and savings & loans (--%)
Banamex Series B 400,000 770,600
____________________________________________________________
__________________Building materials (0.4%)
Empresas ICA Sociedad Controladora ADR 553,500(c) 6,434,438
____________________________________________________________
__________________Financial services (0.1%)
Banorte Series B 828,000(b) 1,010,549
____________________________________________________________
__________________Netherlands (3.5%)
Chemicals (1.0%)
Akzo Nobel 152,621 16,982,596
____________________________________________________________
__________________Financial services (0.9%)
Ing Groep 227,055 15,081,674
____________________________________________________________
__________________Media (1.2%)
Elsevier 1,400,000 19,822,600
____________________________________________________________
__________________Textiles & apparel (0.4%)
Gucci 180,000(b) 7,668,180
____________________________________________________________
__________________New Zealand (1.0%)
Paper & packaging
Carter Holt Harvey 3,851,000 8,241,140
Fletcher Challenge 3,263,100 7,488,815
Fletcher Challenge Forest 462,988 644,942
____________
Total 16,374,897
____________________________________________________________
__________________Norway (0.4%)
Banks and savings & loans (0.2%)
Christiania Bank 1,671,800 4,284,823
____________________________________________________________
__________________Industrial transportation (0.2%)
First Olsen Tankers 408,000(b) 2,869,464
____________________________________________________________
__________________Philippines (0.8%)
Financial services (0.3%)
Philippine Commercial Intl Bank 441,000 4,805,136
____________________________________________________________
__________________Utilities - telephone (0.5%)
Philippines Long Distance Telephone ADR 131,900(c) 7,798,588
____________________________________________________________
__________________Singapore (4.8%)
Automotive & related (0.9%)
Cycle & Carriage 1,306,000 14,705,560
____________________________________________________________
__________________Banks and savings & loan (1.2%)
Development Bank Singapore 539,500(b) 7,679,782
Overseas Union Bank 1,714,350 12,504,469
___________
Total 20,184,251
____________________________________________________________
__________________Beverages & tobacco (0.7%)
Fraser & Neave 916,600 12,268,691
____________________________________________________________
__________________Industrial equipment & services (0.4%)
Sembawang Shipyard 1,243,000 6,821,584
____________________________________________________________
__________________Industrial transportation (1.0%)
Keppel 1,647,000 16,679,169
_________________________________________________
_____________________________Real estate (0.6%)
DBS Land 2,550,000 10,021,500
____________________________________________________________
__________________Spain (3.3%)
Banks and savings & loans (1.0%)
Argentaria Bancaria de Espana 380,000 17,134,200
____________________________________________________________
__________________Energy (0.9%)
Repsol 414,000 15,121,350
____________________________________________________________
__________________Telecommunications (1.4%)
Telefonica 1,432,000 23,547,808
____________________________________________________________
__________________Sweden (1.9%)
Industrial equipment & services
Asea B Free Shares 130,000 13,098,800
Ericsson (LM) B Free 825,000 17,908,275
____________
Total 31,007,075
____________________________________________________________
__________________Switzerland (2.9%)
Banks and savings & loans (1.3%)
Swiss Bank 113,500(b) 20,881,617
____________________________________________________________
__________________Health care (1.6%)
Sandoz 28,500 26,775,950
____________________________________________________________
__________________Taiwan (0.4%)
Taiwan Fund 322,800(c) 6,819,150
____________________________________________________________
__________________Thailand (2.2%)
Banks and savings & loans (1.1%)
First Bangkok 8,665,000 8,249,106
Siam Commercial Bank 616,000 10,066,672
____________
Total 18,315,778
_________________________________________________
_____________________________Building materials (0.7%)
TPI Polene 2,265,585 12,581,591
____________________________________________________________
__________________Financial services (0.4%)
Dhana Sima Finance 1,006,400 6,506,376
____________________________________________________________
__________________United Kingdom (13.6%)
Banks and savings & loans (0.9%)
Natl Westminster 1,464,007 15,506,762
____________________________________________________________
__________________Beverages & tobacco (0.7%)
Guinness 1,780,000 12,524,080
____________________________________________________________
__________________Building materials (0.9%)
Redland 2,160,000 14,268,960
____________________________________________________________
__________________Electronics (0.1%)
Farnell Electronics 210,200 1,987,861
____________________________________________________________
__________________Health care (1.8%)
Glaxo Wellcome 2,244,030 31,077,571
____________________________________________________________
__________________Leisure time & entertainment (1.0%)
Rank Organisation 2,170,225 16,166,006
____________________________________________________________
__________________Machinery (1.5%)
Siebe 2,048,000 25,364,480
____________________________________________________________
__________________Metals (0.3%)
RTZ 379,040 5,292,915
____________________________________________________________
__________________Multi-industry conglomerates (1.2%)
BTR 3,656,700 18,075,068
Framlington Maghreb Fund Units 50,000(b) 2,206,250
____________
Total 20,281,318
____________________________________________________________
__________________Retail (2.3%)
Argyll Group 1,600,400 7,237,009
Kingfisher 2,712,400 21,577,142
Next 1,208,100 8,776,847
____________
Total 37,590,998
____________________________________________________________
__________________Telecommunications (0.5%)
British Telecomm 1,478,800 8,420,287
____________________________________________________________
__________________Transportation (1.7%)
British Airways 2,631,200 20,549,672
NFC 3,126,500 7,569,257
____________
Total 28,118,929
____________________________________________________________
__________________Utilities - telephone (0.7%)
Vodafone Group 3,328,995 11,811,274
____________________________________________________________
__________________Total common stocks
(Cost: $1,395,242,195) $1,541,561,957
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Bond (0.4%)
Issuer Principal Value (a)
Amount
____________________________________________________________
__________________<S> <C> <C>
Renong
(U.S. Dollar)
2.50% Cv 2005 $6,000,000(d) $ 6,892,500
(Cost $6,004,460)
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Short-term securities (10.0%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
____________________________________________________________
__________________<S> <C> <C> <C>
U.S. government agency (0.3%)
Federal Home Loan Mtge Corp Disc Note
03-20-96 5.15% $5,800,000 $ 5,784,296
____________________________________________________________
__________________Commercial paper (8.8%)
Alabama Power
04-04-96 5.18 2,900,000 2,885,922
05-21-96 5.12 1,235,000 1,219,950
AT&T
03-28-96 5.22 5,500,000 5,478,550
05-09-96 5.16 4,500,000 4,453,188
Aon
03-08-96 5.22 1,200,000 1,198,787
Bell South
03-07-96 5.22 3,100,000 3,097,313
03-12-96 5.31 6,000,000 5,990,320
CAFCO
03-08-96 5.41 2,800,000(e) 2,797,071
Campbell Soup
03-28-96 5.20 3,000,000(e) 2,988,345
CIT Group Holdings
03-27-96 5.24 2,000,000 1,992,474
03-29-96 5.25 4,900,000 4,880,106
Commercial Credit
03-25-96 5.23 6,900,000 6,876,034
Consolidated Rail
04-19-96 5.17 5,000,000(e) 4,963,281
Emerson Electric
03-22-96 5.22 3,300,000 3,289,990
Fleet Funding
03-08-96 5.41 4,000,000(e) 3,995,816
03-20-96 5.24 1,100,000(e) 1,096,975
Illinois Tool
04-09-96 5.19 2,800,000 2,784,348
Kredietbank North Amer Finance
03-13-96 5.23 7,700,000 7,686,628
Merrill Lynch
04-25-96 5.24 800,000 793,484
Metlife Funding
04-25-96 5.17 5,400,000 5,356,015
04-26-96 5.19 6,000,000 5,951,933
Mobil Australia
03-19-96 5.22 5,400,000(e) 5,385,960
Morgan Stanley
03-06-96 5.45 5,500,000 5,495,860
Pacific Mutual
03-01-96 5.23 2,000,000 2,000,000
Reed Elsevier
03-26-96 5.20 3,400,000(e) 3,387,770
04-01-96 5.22 5,500,000(e) 5,475,372
Sandoz
03-21-96 5.39 5,000,000(e) 4,984,388
04-03-96 5.24 5,500,000 5,473,683
Siemens
03-01-96 5.48 5,200,000 5,200,000
03-25-96 5.23 8,800,000 8,769,493
Southern California Gas
03-29-96 5.38 1,700,000(e) 1,688,735
04-08-96 5.19 2,300,000(e) 2,282,376
Toyota Motor
03-08-96 5.36 5,000,000 4,994,808
03-15-96 5.38 1,700,000 1,696,463
04-02-96 5.22 8,000,000 7,963,022
USL Capital
03-07-96 5.25 1,000,000 999,128
03-26-96 5.22 2,200,000 2,192,056
____________
Total 147,765,644
________________________________________
______________________________________
Letters of Credit (0.9%)
Bank of Amer-
AES Barbers Point
04-04-96 5.26 2,600,000 2,587,133
Bank of New York-
River Fuel
03-07-96 5.37 12,000,000(e) 11,989,300
____________
Total 14,576,433
____________________________________________________________
__________________Total short-term securities
(Cost: $168,144,017) $ 168,126,373
____________________________________________________________
__________________Total investments in securities
(Cost: $1,569,390,672)(f) $1,716,580,830
________________________________________
______________________________________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) Security is partially or fully on loan. See Note 6 to
the financial statements.
(d) Represents a security sold under Rule 144A, which is
exempt from registration under the Securities Act of 1933,
as amended. This security has been determined to be liquid
under guidelines established by the board.
(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." This security has been determined to be liquid
under guidelines established by the board.
(f) At Feb. 29, 1996, the cost of securities for federal
income tax purposes was approximately $1,569,391,000 and the
approximate aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appciation $189,404,000
Unrealized depreciation (42,214,000)
____________________________________________________________
__________________Net unrealized appreciation $147,190,000
____________________________________________________________
__________________</TABLE>
PAGE
<TABLE>
<CAPTION>
Retirement Annuity Mutual Funds (Percentages represent value of
Feb. 29, 1996 (Unaudited) investments compared to total net assets)
Aggressive Growth Fund
____________________________________________________________
__________________Common & preferred stocks (84.4 %)
Issuer Shares Value(a)
____________________________________________________________
__________________<S>
<C> <C>
Aerospace & defense (1.2%)
Loral 325,000 $ 15,315,625
Sundstrand 75,200 5,668,200
Total 20,983,825
____________________________________________________________
__________________Airlines (0.8 %)
Northwest Airlines 93,600(b) 4,293,900
Southwest Airlines 300,000 9,225,000
Total 13,518,900
____________________________________________________________
__________________Automotive & related (1.0 %)
Miller Indus 275,000 (b) 7,803,125
Snap-On 200,000 8,950,000
Total 16,753,125
____________________________________________________________
__________________Building materials (1.4 %)
Masco 380,000 10,830,000
Tyco Intl 340,000 12,282,500
Total 23,112,500
____________________________________________________________
__________________Chemicals ( 3.7 %)
Culligan Water Technologies 325,000(b) 9,993,750
IMC Global 150,000 6,187,500
Morton Intl 230,000 8,711,250
Pall 300,000 8,175,000
Praxair 325,000 11,212,500
Raychem 130,000 8,433,750
Signa-Aldrich 195,000 11,163,750
Total 63,877,500
____________________________________________________________
__________________Communications equipment (3.8%)
Andrew 69,500(b) 3,614,000
Ascend Communications 208,700(b) 9,443,675
Cascade Communications 112,500(b) 7,635,937
Cylink 148,300(b) 3,485,050
Exabyte 590,000(b) 8,407,500
FORE Systems 130,000(b) 8,580,000
McAfee Associates 150,000(b) 8,025,000
Mylex 320,000(b) 7,680,000
Stratacom 220,000(b) 8,800,000
Total 65,671,162
____________________________________________________________
__________________Computers & office equipment (12.4%)
America Online 130,000(b) 6,386,250
American Management Systems 540,000(b) 12,960,000
Broadway & Seymour 377,500(b) 5,096,250
Cisco Systems 580,000(b) 27,550,000
Compaq Computer 160,000(b) 8,100,000
First Data 209,295 14,493,679
Gateway 2000 300,000(b) 8,850,000
Network General 250,000(b) 10,062,500
Novell 525,000(b) 6,398,438
Oracle 425,000(b) 22,100,000
Parametric Technology 225,000(b) 16,734,375
PeopleSoft 104,100(b) 5,621,400
Quarterdeck 315,000(b) 5,866,875
Sanmina 210,000(b) 11,235,000
Softquad Intl 115,000(b) 833,750
Sterling Software 180,000(b) 11,992,500
Sungard Data Systems 285,000(b) 9,761,250
Synopsys 200,000(b) 6,550,000
Tech Data 550,000(b) 8,318,750
3Com 267,000(b) 13,049,625
Total 211,960,642
____________________________________________________________
__________________Electronics ( 1.2 %)
ADT Ltd 575,000(b) 8,481,250
Dynatech 125,900(b) 3,147,500
Maxim Integrated Products 200,000(b) 7,250,000
Microchip Technologies 60,000(b) 1,665,000
Plasma & Materials Technologies 27,500(b) 371,250
Total 20,915,000
____________________________________________________________
__________________Energy (1.2%)
Nabors Inds 675,000(b) 8,690,625
Pogo Producing 325,000 11,009,375
Total 19,700,000
____________________________________________________________
__________________Energy equipment and services (4.2%)
Dresser Inds 321,000 9,028,125
ENSCO Intl 415,000(b) 10,011,875
Fluor 130,000 8,726,250
Global Marine 1,200,000(b) 10,650,000
Halliburton 265,000 14,541,875
Rowan 850,000(b) 9,243,750
Tidewater 275,000 9,384,375
Total 71,586,250
____________________________________________________________
__________________Financial services ( 1.1%)
Paychex 350,000 19,293,750
____________________________________________________________
__________________Foreign (7.7 %)
Adidas 275,000 (b,c) 8,799,505
Astra A 205,000(b) 9,416,470
Biochem Pharma 200,000(b) 9,250,000
Bufete Industrial 230,000(b) 3,967,500
Danka Business Systems 375,000 16,406,250
Elan ADR 120,000(b) 6,960,000
Empresas ICA Sociedad 500,000 5,812,500
Grupo Televisa 200,000 4,900,000
Nera Telecom 260,000(b) 9,847,500
Northern Telecom 180,000 8,550,000
Panamerican Beverages 105,000 4,252,500
Renaissance Energy 117,000(b,c) 2,963,914
Schlumberger 125,000 9,109,375
Seagram 235,000 8,078,125
Sofamor Danek Group 201,700(b) 6,580,462
Sun Hung Kai Properties ADR 880,000(b) 7,854,000
Telefonos de Mexico "L" 125,000 3,812,500
Teva Pharmaceutical ADR 130,000 5,622,500
Total 132,183,101
____________________________________________________________
__________________Health care (12.7 %)
ALZA 288,000(b) 9,576,000
Amgen 170,000(b) 10,157,500
Biogen 130,000(b) 8,498,750
Biomet 480,000(b) 9,120,000
Boston Scientific 200,000(b) 9,600,000
Coherent 195,000(b) 8,872,500
Conceptus 165,000(b) 3,258,750
Cytogen 487,300(b) 3,898,400
Genzyme 140,000(b) 9,660,000
Gilead Sciences 425,000(b) 15,087,500
Guidant 184,000 8,717,000
Hologic 100,000(b) 4,900,000
IDEXX Laboratories 800,000(b) 38,400,000
Kinetic Concepts 560,900 7,642,263
Liposome 330,000(b) 5,795,625
Magainin Pharmaceuticals 310,000(b) 3,991,250
Medtronic 155,000 8,893,125
Mentor 340,000 8,712,500
Optical Sensors 32,000(b) 428,000
Ostex 225,000(b) 2,896,875
PLC Systems 192,000(b) 5,904,000
SEQUUS Pharmaceuticals 550,000(b) 9,075,000
Stryker 150,000 8,137,500
Uromed 500,000(b) 7,000,000
Ventritex 121,200(b) 2,181,600
Watson Pharmaceuticals 184,000(b) 7,912,000
Total 218,316,138
____________________________________________________________
__________________Health care services (8.5 %)
Apria Healthcare Group 41,600(b) 1,300,000
Cardinal Health 160,000 9,640,000
Genesis Health Ventures 200,000(b) 8,725,000
HBO & Company 640,000 63,360,000
Health Mgmt Associates 322,000(b) 10,102,750
HEALTHSOUTH 265,000(b) 9,275,000
Medaphis 250,000(b) 9,718,750
OrNda HealthCorp 335,000(b) 8,584,375
PhyCor 215,000(b) 9,782,500
Physician Support Systems 90,300(b) 1,602,825
Tenet Healthcare 215,900(b) 4,830,763
Vivra 289,000(b) 8,525,500
Total 145,447,463
____________________________________________________________
__________________Household products (0.5 %)
Duracell Intl 175,000 9,034,375
____________________________________________________________
__________________Industrial equipment & services (2.3%)
Case 175,000 9,296,875
Energy Biosystems
8% Cv Pfd 35,000(b,c) 1,435,000
Sanifill 259,600(b) 10,156,850
Thermo Electron 180,000(b) 9,855,000
United Waste Systems 200,000(b) 9,300,000
Total 40,043,725
____________________________________________________________
__________________Insurance (3.8%)
ACE Ltd 215,000 10,051,250
Horace Mann Educators 330,000 10,848,750
PennCorp Financial Group 375,000 12,281,250
Prudential Reinsurance 209,400 5,130,300
Risk Capital 330,200(b) 6,686,550
TIG Holdings 360,000 11,385,000
UMUM 145,000 8,536,875
Total 64,919,975
____________________________________________________________
__________________Leisure time & entertainment (1.4 %)
Cannondale 79,400(b) 1,230,700
Grand Casinos 124,000(b) 3,952,500
Harley-Davidson 245,000 8,789,375
Marriott Intl 200,000 9,825,000
Total 23,797,575
____________________________________________________________
__________________Metals (0.5%)
Nucor 150,000 8,081,250
____________________________________________________________
__________________Media (2.8%)
Emmis Broadcasting 190,000(b) 7,267,500
HA-LO Inds 300,000(b) 6,750,000
Infinity Broadcasting Cl A 365,000(b) 15,056,250
Regal Cinemas 270,000(b) 9,112,500
Tele-Communications 500,000(b) 10,500,000
Total 48,686,250
____________________________________________________________
__________________Multi-industry conglomorates (1.4%)
Alco Standard 200,000(b) 9,475,000
Olsten 210,000 9,607,500
Wackenhut Corrections 140,000(b) 4,900,000
Total 23,982,500
________________________________________________
______________________________Paper & packaging (0.9 %)
Crown Cork & Seal 175,000 8,246,875
Kimberly-Clark 100,000 7,637,500
Total 15,884,375
____________________________________________________________
__________________Restaurants & lodging (2.7%)
Boston Chicken 150,000(b) 5,381,250
Hospitality Franchise 540,000(b) 25,110,000
Manhattan Bagel 470,000(b) 10,810,000
Rainforest Cafe 122,000(b) 2,958,500
Sun Intl Hotels 75,700(b) 2,715,737
Total 46,975,487
____________________________________________________________
__________________Retail (5.6%)
Corporate Express 500,000(b) 14,875,000
Gap 200,000 10,725,000
Kohl's 165,900(b) 10,265,062
May Dept Stores 195,000 9,091,875
Pep Boys-Manny, Moe & Jack 285,000 8,550,000
PETsMart 200,000(b) 6,950,000
Rite Aid 275,000 8,662,500
TJX 500,000 11,125,000
Viking Office Products 275,000(b) 15,640,625
Total 95,885,062
____________________________________________________________
__________________Utilities - telephone (1.5%)
Ceutury Telephone Enterprises 245,000 8,238,125
Millicom Intl Cellular 250,000(b) 9,468,750
Paging Network 310,000(b) 8,215,000
Total 25,921,875
____________________________________________________________
__________________Total common & preferred stocks
(Cost: $ 1,112,342,391) $1,446,531,805
</TABLE>
____________________________________________________________
__________________<TABLE>
<CAPTION>
Bonds (1.3 %)
Issuer Principal Value(a)
Amount
____________________________________________________________
__________________<S>
<C> <C>
Boston Chicken
Zero Coupon Cv
with attached put
8.00% 2015 $20,000,000(e) $ 6,500,000
Park Electrochemical
7.00% 2006 4,500,000 4,410,000
Richy Electronics
7.00% Cv 2006 3,000,000(c) 3,000,930
Thermo Electron
4.25% Cv 2003 7,500,000(c) 8,700,000
(Cost: $19,419,458) 22,610,930
</TABLE>
____________________________________________________________
__________________<TABLE>
<CAPTION>
Short-term securities (15.9%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
____________________________________________________________
__________________<S>
<C> <C> <C>
U.S. government agency (0.6%)
Federal Home Loan Mtge Corp Disc Nts
03-13-96 5.13% $5,000,000 $ 4,991,483
Federal Natl Mtge Assn Disc Nts
05-03-96 5.23 5,000,000 4,954,222
Total 9,945,705
____________________________________________________________
__________________Commercial paper (14.9 %)
ABN Amro
North Amer Finance
05-20-96 5.15 7,800,000 7,706,107
Amer General Capital
03-06-96 5.46 10,000,000(d) 9,992,458
Amer General Finance
03-14-96 5.24 9,700,000 9,681,751
Aon
03-08-96 5.22 2,900,000 2,897,068
AT&T
03-06-96 5.39 6,800,000 6,789,876
Associates
05-06-96 5.18 5,900,000 5,841,254
Beneficial
03-04-96 5.49 6,500,000 6,497,042
CAFCO
03-08-96 5.41 6,200,000(d) 6,193,514
04-16-96 5.19 7,000,000(d) 6,950,928
04-24-96 5.21 600,000 595,347
Cargill
03-07-96 5.24 9,800,000 9,791,474
Cargill Global Funding
03-21-96 5.54 4,000,000(d) 3,987,113
CIT Group
03-27-96 5.24 5,700,000 5,678,552
04-24-96 5.19 1,700,000 1,686,867
CPC Intl
06-20-96 5.15 2,000,000(d) 1,968,453
Ciesco
03-13-96 5.41 4,700,000 4,691,579
04-03-96 5.24 3,700,000 3,682,295
Coca-Cola
04-26-96 5.27 4,600,000 4,561,224
Commercial Credit
03-18-96 5.22 5,400,000 5,386,740
Consolidated Rail
05-10-96 5.19 1,500,000(d) 1,484,173
Ford Motor Credit
03-01-96 5.59 4,300,000(d) 4,300,000
06-07-96 5.17 6,400,000 6,307,600
Gannett
03-11-96 5.23 2,000,000(d) 1,997,111
Gateway Fuel
03-25-96 5.22 6,572,000 6,549,217
General Electric Capital
03-05-96 5.44 5,000,000 4,996,994
03-18-96 5.24 4,800,000 4,788,191
Household Finance
03-12-96 5.23 5,800,000 5,790,767
03-21-96 5.23 7,000,000 6,979,739
Metlife Funding
04-25-96 5.17 4,400,000 4,364,161
Michigan Consolidated Gas
04-22-96 5.19 5,000,000 4,961,158
Natl Australia Funding Delware
03-19-96 5.38 10,100,000 10,073,033
Nationsbank Nts
04-11-96 5.44 10,000,000 10,002,260
Nestle Capital
05-06-96 5.09 5,400,000 5,346,233
Pacific Mutual
03-01-96 5.23 1,800,000 1,800,000
Penney (J.C.) Funding
04-18-96 5.17 6,500,000 6,455,540
Pitney Bowes Credit
03-19-96 5.23 4,400,000 4,388,538
03-22-96 5.38 6,500,000 6,479,753
Reed Elsevier
03-13-96 5.22 8,500,000(d) 8,485,267
03-20-96 5.22 4,300,000(d) 4,288,199
Sara Lee
03-27-96 5.43 9,900,000 9,859,251
Ssysco
03-27-96 5.21 3,900,000(d) 3,885,410
Toyota Motor Credit
03-06-96 5.25 2,400,000 2,398,257
03-15-96 5.38 4,000,000 3,991,678
04-02-96 5.22 4,900,000 4,877,351
Transamerica Finance
03-01-96 5.50 4,700,000 4,700,000
USAA Capital
03-14-96 5.41 6,300,000 6,287,783
03-15-96 5.41 5,000,000 4,989,558
Total 255,406,863
____________________________________________________________
__________________Letter of Credit (0.4%)
Bank of New York
River Fuel
03-07-96 5.37 7,200,000(d) 7,193,580
____________________________________________________________
__________________Total short-term securities
(Cost: $272,573,133) $ 272,546,149
____________________________________________________________
__________________Total investments in securities
(Cost: $1,404,334,982)(f) $1,741,688,884
____________________________________________________________
__________________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.
(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.
(e) For zero coupon bonds, the interest rate disclosed
represents the annualized effective yield on the date of
acquisition.
(f)At Feb. 29, 1996, the cost of securities for federal
income tax purposes was approximately $1,404,335,000 and the
approximate aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . $354,670,000
Unrealized depreciation. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,316,000)
____________________________________________________________
__________________Net unrealized appreciation. . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . $337,354,000
____________________________________________________________
__________________</TABLE>
PAGE
Quick telephone reference
IDS Life Insurance Company
Surrenders and exchanges, dollar-cost averaging and
automated partial surrenders
National/Minnesota:
800-437-0602
_______________________________________________________
________
TTY Service
For the hearing impaired
800-285-8846
_______________________________________________________
________
American Express Infoline
Automated account information (TouchTone phones only),
including current fund prices and performance, account
values and recent account transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
_______________________________________________________
_________
American Express Financial Advisors
Retirement Annuity Mutual Funds
IDS Tower 10
Minneapolis, MN 55440-0010
