<PAGE>
LINCOLN LIFE
MULTI FUND(R)
SEMI ANNUAL
REPORT 1995
<PAGE>
Multi Fund(R) 1995 Semi-Annual Report (Unaudited)
Index
Statement of Net Assets:
Lincoln National Aggressive Growth Fund, Inc. 7
----------------------------------------------------------
Lincoln National Bond Fund, Inc. 8
----------------------------------------------------------
Lincoln National Capital Appreciation Fund, Inc. 10
----------------------------------------------------------
Lincoln National Equity Income Fund, Inc. 11
----------------------------------------------------------
Lincoln National Global Asset Allocation Fund, Inc. 14
----------------------------------------------------------
Lincoln National Growth and Income Fund, Inc. 19
----------------------------------------------------------
Lincoln National International Fund, Inc. 21
----------------------------------------------------------
Lincoln National Managed Fund, Inc. 23
----------------------------------------------------------
Lincoln National Money Market Fund, Inc. 26
----------------------------------------------------------
Lincoln National Social Awareness Fund, Inc. 27
----------------------------------------------------------
Lincoln National Special Opportunities Fund, Inc. 28
----------------------------------------------------------
Statement of Operations 30
----------------------------------------------------------
Statement of Changes in Net Assets 32
----------------------------------------------------------
Notes to Financial Statements:
1. Significant Accounting Policies 34
----------------------------------------------------------
2. Other Assets Over(Under) Liabilities 35
----------------------------------------------------------
3. Management Fees and Other
Transactions With Affiliates 35
----------------------------------------------------------
4. Analysis of Net Assets 36
----------------------------------------------------------
5. Investments 36
----------------------------------------------------------
6. Supplemental Financial Instrument
Information 37
----------------------------------------------------------
7. Concentration of Credit Risk 38
----------------------------------------------------------
8. Summary of Changes from
Capital Share Transactions 39
----------------------------------------------------------
9. Distribution To Shareholder 40
----------------------------------------------------------
10. Capital Loss Carryforward 40
----------------------------------------------------------
11. Fund Name Changes 40
----------------------------------------------------------
Financial Highlights 41
----------------------------------------------------------
<PAGE>
LINCOLN LIFE
Dear Multi Fund(R) Contract Owner:
We are pleased to report very strong performance for most of the Multi Fund(R)
Variable Annuity subaccounts during the first six months of 1995. The unit value
changes (including fees and expenses) for the first six months (12/31/94 to
6/30/95) were:
EQUITY FUNDS BALANCED FUNDS
Growth and Income Fund 20.28% Global Asset Allocation Fund* 11.23%
Special Opportunities Fund 18.69 Managed Fund 15.42
Social Awareness Fund 18.83
Capital Appreciation Fund 11.88 FIXED INCOME FUNDS
Equity-Income Fund 17.11 Bond Fund 10.77%
Aggressive Growth Fund 15.98 Money Market Fund** 2.30
International Fund* 2.13
The first six months of 1995 saw a dramatic continuation of the rally of the
financial marketplace that began in late 1994. The positive outlook in the U.S.
for stable interest rates, strong corporate earnings, and moderate inflation
provided an excellent environment for equity securities.
The positive performance of the subaccount for the first half of this year, in
comparison to the relatively poor performance of 1994, illustrates the
importance of keeping a long term perspective and maintaining a well diversified
portfolio. It is important that you allocate your account among the available
investment options consistent with your risk tolerance and your investment
horizon.
The next several pages contain performance and investment commentary from the
Multi Fund(R) Variable Annuity's seven investment management firms regarding
each subaccount for the first 6 months of 1995. The Multi Fund(R) portfolio
advisor and subadvisors continue to utilize their expertise to obtain favorable
relative returns in any given market condition. More detailed information about
the eleven subaccounts follow the commentary.
Please note that the following information pertains to the mutual fund
investments underlying your Multi Fund(R), Account C Variable Annuity contract.
We appreciate your patronage and the opportunity to help you achieve your
financial security goals.
Sincerely,
/s/ Kelly D. Clevenger
Kelly D. Clevenger
President, Board of Directors
* The risks associated with investing on a world-wide basis include differences
in regulation of financial data and reporting, currency exchange differences, as
well as economic and political systems which may be different from those in the
United States.
** An investment in the money market fund is neither insured nor guaranteed by
the U.S. government, and there can be no assurance that the subaccount will
maintain a stable $1 share price.
1
<PAGE>
Fidelity Management Trust Co.
Stephen Petersen
Equity-Income Fund
In the six months ending June 30, 1995, the Fund received net contributions of
approximately $52 million. Changes in industry and sector weightings in the
period resulted from issuer and industry selection as well as cash inflows. We
continued to seek value-oriented stocks with improvement potential on a
stock-by-stock basis.
For the first half of 1995, the Fund performance was slightly under that of its
appropriate index, the S&P 500 Index. The Equity-Income Fund return was 17.57%
while the S&P 500 Index performance for the same time period was 20.2%.
Following the late-1994 sell off of cyclicals, we purchased a variety of
economically sensitive stocks during the first quarter. These stocks, including
General Motors, WMX Technologies, and Deere, already appeared to be discounting
a slowing economy, and the companies had strong cash flow prospects. On stock
price weakness, several energy-related stocks were purchased including British
Petroleum and Atlantic Richfield. These integrated companies have rising
production volumes and declining unit costs.
In the second quarter, we continued to purchase certain economically sensitive
positions, such as Ford and General Motors. These stocks remained down sharply
from their peaks and appeared to overdiscount sluggish economic conditions. We
expect eventual economic stimulus from lower interest rates and ongoing internal
actions to improve earnings at these companies. We swapped Chrysler's
convertible preferred stock for the company's common stock to earn a higher
dividend yield.
Putnam Investment Management Co.
William J. Landes, PhD.
Global Asset Allocation Fund
So far, 1995 has been a spectacular year for financial assets. Both the U.S.
equity market and the U.S. bond market turned in the best 6 month performance in
recent memory. Five year bond yields have fallen by almost 2 percentage points
since the beginning of 1995. The Dow Jones Industrial Average has gained over
750 points over the same period. International bond markets also soared, while
non-U.S. equity markets have lagged.
The Global Asset Allocation Fund ended the first half of the year with a total
return of 13.05%. The Fund's return was less than that of the U.S. stock market
index (The S&P 500 Index). The S&P 500 has returned 20.2% so far in 1995. The
Lehman Brothers Government/Corporate Bond Index was up 11.8% year to date. Bond
markets abroad fared much better than stock markets.
Entering 1995, the Fund was fully invested at neutral asset class weightings,
which means that the Fund's investments were placed at a level that was not
intentionally higher in any certain asset class. This positioning reflected Fund
management's belief that all financial markets were attractively priced
following 1994's sell-offs. In April, we moved to an overweight position in
emerging market bonds and international stocks, taking profits in the U.S. stock
and bond markets to do so. Since that time, emerging market debt has returned
over 15% while non-U.S. equity markets have kept pace with the U.S. market.
All in all, 1995 has been a very profitable year for shareholders of the Fund.
Looking forward to the remainder of this year, the Fund is positioned to take
advantage of capital markets outside of the United States that remain
2
<PAGE>
undervalued. More importantly, the global diversification of the Fund will help
ensure that the impressive returns of the first half of 1995 will be preserved,
even if the ebullience of the U.S. financial markets subsides in the second
half.
Lynch and Mayer, Inc.
Edward Petner
Aggressive Growth Fund
Both the U.S. stock and bond markets were strong performers in the second
quarter, building upon the strong gains achieved in the first quarter. Falling
interest rates were once again the primary driver of this performance. As the
year has progressed, investors increasingly perceive a slowdown in the expected
rate of U.S. economic growth for 1995 and, as a result, both short term and long
term interest rates have fallen. Other drivers have been strong corporate
profits and continued positive money inflows by investors into equity mutual
funds.
The two strongest performing sectors of the stock market this year have been
technology and financial issues where year-to-date returns are in excess of 35%
and 29% respectively.
The Fund finished the first half of 1995 trailing the S&P Mid Cap Index. The
Aggressive Growth Fund performance was 16.55% while the Index performance for
the same time period was 17.6%. The Fund's performance benefited from our
exposure to the technology and financial sectors as well as energy stocks. Our
healthcare holdings underperformed the market.
Even in the best of times, markets do not go straight up without some pause or
pullback in prices along the way. An important factor which may put pressure on
the stock market is that corporate profit margins are probably peaking right now
for this economic cycle which may produce an overall slowdown in earnings growth
later this year.
We remain committed to identifying and purchasing shares of companies undergoing
major, positive fundamental change. Over time the positive earnings surprises
generated by these companies should drive their stock prices higher and produce
excellent returns for our Fund.
Janus Capital Corp.
James Craig
Capital Appreciation Fund
The equity market enjoyed a powerful rally during the first six months of 1995.
Stocks were propelled higher by declining interest rates. Interest rates
declined because the U.S. economy slowed to a more sustainable rate of growth
and inflation remained low. As the year began, the economy was growing rapidly
and interest rates were much higher. Had the economy failed to slow, stock
prices would have come under severe pressure from rising interest rates.
The Capital Appreciation Fund underperformed the S&P 500 Index. This was due in
part to our underweighting in technology (less than 1% of assets), which
continues to lead the market. The Fund's performance for the first six months of
1995 was 12.21%, while the S&P 500 Index performance was 20.2% for the same time
period.
At June 30th, the portfolio was approximately 88% invested in stocks, versus 75%
in stocks at the end of the first quarter. EDS, the large information processor,
and First Data Corp., a credit card processor, remain significant positions in
this portfolio. Both are participating in the boom in outsourcing, and First
Data is in merger talks with First Financial Management, another credit card
processor. After the merger, First Data, we expect will enjoy an even faster
growth rate.
3
<PAGE>
I remain optimistic about the equity markets. The U.S. dollar whose weakness was
a potential negative earlier in the year, appears to have stabilized and has
alleviated, at least in the short to intermediate term, investors' concerns
about inflation in imported goods. I am not sure, however, how aggressively the
Federal Reserve will lower interest rates going forward. Still, growth stocks
are currently providing many good investment opportunities and I will attempt to
capitalize on them in the second half of the year.
Lincoln Investment Management, Inc.
Jay Yentis
Managed Fund
The Managed Fund continues to maintain a very small cash position. The fixed
income allocation does include a small allocation in very short term treasuries.
This allocation was included to increase yields compared to cash, however this
is available if cash flow so dictates. The asset allocation as of June 30, 1995
for the Fund was: equities 51.5%, fixed income 47.7%, and cash .8%. The Fund may
deviate from the usual allocation ranges (equities 40% to 45%, fixed income 50%
to 55%, and cash 3% to 10%) when market conditions dictate that it is
appropriate.
Considering the reduction of risk due to diversification, the Managed Fund
performed quite well in comparison to the applicable indices. The Managed Fund
performance for the first 6 months of 1995 was 18.76% compared to the S&P 500
Index of 20.2% and the Lehman Brother Government/Corporate Bond Index
performance of 11.8%.
In my opinion the outlook for the second half of the year continues to favor
equities over bonds. For the near term I do not envision significant rebalancing
of the portfolio.
Lincoln Investment Management, Inc.
Tim Policinski
Bond Fund
The Bond Fund average duration was equal to the average duration of the Lehman
Brothers Government/Corporate Bond Index at the beginning of the quarter and
slightly longer than the Index by the close of the quarter. This slight
lengthening occurred as the economy started to show signs of weakness. The Fed
Policy is still not clear enough to justify a large duration adjustment. The
cash position was lowered to less than 5% by June 30, 1995 as selected
opportunities became available in the corporate bond market.
In the corporate sector, lower quality utilities were sold as spreads tightened.
Several other sectors including banks and airlines also performed very well in
the second quarter. The Fund continues to be overweighted in the airline sector.
The Bond Fund performance for the first half of 1995 was very respectable at
15.15%, in comparison to the Lehman Brothers Government/Corporate Bond Index
which performed at 11.8% over the same time period.
The near term strategy continues to be neutral to slightly long in duration
compared to our index (Lehman Brothers Government/Corporate Bond Index). We
would like to maintain our underweighting in mortgage backed securities and
overweighting in corporate fixed income securities in comparison to the Index.
4
<PAGE>
Vantage Global Advisors, Inc.
Scott Wittman
Growth & Income Fund
History was made in the first half of 1995 as the Dow Jones Industrial Average
broke through the 4000 level for the first time ever. Perhaps more significant,
however, was that the market's surge continued beyond that point to close at
almost 4600 at the midpoint of the year. The S&P 500 Index, which provides a
broader representation of stocks than the Dow Jones, climbed to 20.2% for the
first six months of 1995.
The Growth & Income Fund provides conservative, risk-controlled exposure to the
stock market. In the first half of 1995, it did just that, performing in line
with the S&P 500 Index and ahead of most other funds which, on average,
underperformed the Index. The Fund performance for 12/31/94 to 6/30/95 was
22.80%.
The market rose in the face of economic uncertainty. Growth in Gross Domestic
Product for the first quarter was reported at 2.7%, the slowest rate since the
third quarter of 1993. Automobile companies reported lower sales, increasing
inventory, and forecasts of decreasing earnings in the near term. The housing
market, despite lower long term interest rates continued to be sluggish. Housing
starts were down in May. The U.S. economy has been losing jobs, primarily in the
manufacturing and construction sectors of the economy, those sectors most
sensitive to an economic downturn.
Out of this first half comes an important lesson: market timing is difficult.
The market provided exceptional returns for the first half, despite the negative
economic news. That economic news may have led some to take money out of the
market. However, for investors with a long-term outlook, it is important to have
solid, risk-controlled equity exposure in an investment portfolio at all times.
Social Awareness Fund
The market provided exceptional returns for the first half of 1995, with the S&P
500 Index returning over 20% and the S&P Mid-Cap Index returning 17.6%. The
Social Awareness Fund, by virtue of its social screens holds companies that are
in between the average size company in either index. Consistent with that, the
returns to the Social Awareness Fund were in between those of the two indices
with performance of 20.61%.
Throughout 1994, the Federal Reserve was raising interest rates in an attempt to
slow down an economy that was growing too quickly and to keep inflation under
control. The initial effects of those tightening moves hit the economy in early
1995. First quarter growth in Gross Domestic Product was at its lowest level
since 1993. Economically sensitive sectors suffered with retail sales declining,
sales of new homes disappointing analysts, and automobile companies reporting
difficult times in the near term.
Despite the negative economic data, the market was strongly optimistic, rising
steadily with few steps backward. It seemed as though each piece of negative
economic news was interpreted positively by market watchers. Participants in the
Social Awareness Fund can be optimistic as well as the Fund is providing strong
equity market returns while investing only in socially responsible companies.
5
<PAGE>
Special Opportunities Fund
The stock market surged to record breaking heights during the first half of
1995. While the Dow Jones Industrial Average wavered back and forth before
struggling to break through the 4000 barrier, the 4500 mark quickly followed.
The market's rise has taken many analysts by surprise as steady negative
economic news has been followed illogically by the market continuing to climb.
Growth in Gross Domestic Product, a prime measure of domestic productivity,
slowed to the lowest level since 1993. Economically sensitive sectors of the
economy such as housing and automobiles showed strains as housing starts were
down and automobile companies reported low levels of sales.
Some investors steered toward larger companies on the theory that those
companies are less likely to be affected by an economic downturn. Thus, large
stocks outperformed smaller stocks for the first six months. Nevertheless, the
market's rise was so dramatic that small and large stocks alike provided
substantial returns for the first six months. The Special Opportunities Fund
outperformed the major mid-cap indices for the first half of 1995.
The Special Opportunities Fund performance for 12/31/94 to 6/30/95 was 20.69%
while the S&P Mid-Cap Index performance was 17.6% for the same time period.
6
<PAGE>
Lincoln National Aggressive Growth
Fund, Inc.
Statement of Net Assets - Unaudited
June 30, 1995
Number Market
Investments of Shares Value
--------- ----------
Common Stocks:
Aerospace:-1.8%
-----------------------------------------------------
Pall Corp. 75,800 $1,686,550
-----------------------------------------------------
Banking and Insurance:-7.5%
-----------------------------------------------------
Corestates Financial Corp. 30,100 1,049,738
-----------------------------------------------------
MBIA Inc. 24,000 1,596,000
-----------------------------------------------------
TCF Financial Corp. 36,400 1,729,000
-----------------------------------------------------
TIG Holdings Inc. 67,300 1,547,900
-----------------------------------------------------
United Companies Financial
Corp. 24,400 1,094,950
-----------------------------------------------------
7,017,588
Chemicals:-1.3%
-----------------------------------------------------
FMC Corp. * 18,700 1,257,575
-----------------------------------------------------
Coal and Gas:-3.0%
-----------------------------------------------------
Apache Corporation 46,500 1,272,937
-----------------------------------------------------
BJ Services Co. * 69,100 1,572,025
-----------------------------------------------------
2,844,962
Consumer Products and Services:-5.3%
-----------------------------------------------------
Omnicom Group, Inc. 22,700 1,376,188
-----------------------------------------------------
Softkey International
Inc. * 37,300 1,184,275
-----------------------------------------------------
Tommy Hilfiger Corp. * 84,800 2,374,400
-----------------------------------------------------
4,934,863
Drug and Hospital Supplies:-5.6%
Biomet Inc. * 94,000 1,451,125
-----------------------------------------------------
St. Judes Medical, Inc. * 38,800 1,942,425
-----------------------------------------------------
Teva Pharmaceutical Inds.
Ltd 48,800 1,830,000
-----------------------------------------------------
5,223,550
Electrical and Electronics:-6.4%
-----------------------------------------------------
Altera Corporation * 14,000 607,250
-----------------------------------------------------
Amphenol Corporation * 43,700 1,272,763
-----------------------------------------------------
General Instrument Corp. * 55,400 2,125,975
-----------------------------------------------------
Tektronix Inc. 41,200 2,029,100
-----------------------------------------------------
6,035,088
Entertainment:-5.6%
-----------------------------------------------------
Aztar Corp. * 89,400 826,950
-----------------------------------------------------
Players International
Inc. * 99,900 2,010,487
-----------------------------------------------------
Regal Cinemas Inc. * 45,600 1,464,900
-----------------------------------------------------
Station Casinos Inc. * 54,900 977,765
-----------------------------------------------------
5,280,102
Financial Services:-5.6%
-----------------------------------------------------
First USA Inc. 22,300 989,563
-----------------------------------------------------
Green Tree Financial
Corporation 47,800 2,121,125
-----------------------------------------------------
MGIC Invt Corporation 45,700 2,142,188
-----------------------------------------------------
5,252,876
Food and Beverage:-3.3%
-----------------------------------------------------
Coca Cola Enterprises Inc. 89,100 1,949,062
-----------------------------------------------------
Hudson Foods Inc. 84,850 1,177,294
-----------------------------------------------------
3,126,356
Hospital and Health Care:-2.1%
-----------------------------------------------------
HealthSouth
Rehabilitation
Corporation * 77,100 1,339,612
-----------------------------------------------------
Physician Reliance
Network Inc. 34,500 664,125
-----------------------------------------------------
2,003,737
Hotels:-1.9%
-----------------------------------------------------
Hilton Hotels Corp. 25,100 1,763,275
-----------------------------------------------------
Industrial:-0.7%
-----------------------------------------------------
COFLEXIP 26,100 662,288
-----------------------------------------------------
Machinery and Engineering:-3.3%
-----------------------------------------------------
Cognex Corporation * 24,400 979,050
-----------------------------------------------------
Harnnischfeger
Industries Inc. 60,900 2,108,663
-----------------------------------------------------
3,087,713
Metals and Mining:-1.1%
-----------------------------------------------------
Potash Corp of
Saskatchewan 18,000 1,005,750
-----------------------------------------------------
Miscellaneous:-5.1%
-----------------------------------------------------
Lam Resh Corporation * 14,900 951,738
-----------------------------------------------------
Partner Re Holding 33,700 878,306
-----------------------------------------------------
Petroleum GEO Services * 61,500 1,779,656
-----------------------------------------------------
Westpoint Stevens Inc. * 67,200 1,188,600
-----------------------------------------------------
4,798,300
Office and Business Equipment and Services:-11.4%
-----------------------------------------------------
Adobe Sysinc 30,900 1,799,925
-----------------------------------------------------
Cadence Design Systems
Inc. * 64,200 2,078,475
-----------------------------------------------------
Danka Business Systems 43,100 1,045,175
-----------------------------------------------------
Filenet Corporation * 38,700 1,562,512
-----------------------------------------------------
Micro Warehouse Inc. * 24,200 1,116,225
-----------------------------------------------------
Qual Communication Inc. * 58,600 2,025,363
-----------------------------------------------------
Symantec Corp. * 35,700 1,028,606
-----------------------------------------------------
10,656,281
Paper:-1.0%
-----------------------------------------------------
Westvaco Corp. 21,300 942,525
-----------------------------------------------------
Petroleum and Petroleum Related:-4.3%
-----------------------------------------------------
Halliburton Co. 42,900 1,533,675
-----------------------------------------------------
Reading & Bates Corp. * 41,400 382,950
-----------------------------------------------------
Triton Energy Corp. 46,900 2,174,987
-----------------------------------------------------
4,091,612
Photography:-1.2%
-----------------------------------------------------
LCI Industries Inc. * 35,500 1,087,187
-----------------------------------------------------
Retail:-7.7%
-----------------------------------------------------
Newell Co. 35,400 867,300
-----------------------------------------------------
Proffitts Inc * 10,200 300,900
-----------------------------------------------------
Revco DS Inc. * 82,500 1,980,000
-----------------------------------------------------
Scholastic Corp. * 31,300 1,705,850
-----------------------------------------------------
Staples Inc. 33,800 975,975
-----------------------------------------------------
Sunglass Hut
International Inc. * 39,200 1,367,100
-----------------------------------------------------
7,197,125
Savings and Loan:-1.3%
-----------------------------------------------------
Ahmanson H F and Co. * 55,500 1,221,000
-----------------------------------------------------
Soaps, Cleaner and Cosmetics:-1.7%
-----------------------------------------------------
Clorox Company 24,300 1,585,575
-----------------------------------------------------
Telecommunications:-0.9%
-----------------------------------------------------
Scientific Atlanta Inc. 36,900 811,800
-----------------------------------------------------
Transportation:-1.5%
-----------------------------------------------------
Fritz Companies Inc. * 24,800 1,457,000
-----------------------------------------------------
Total Common Stocks:-90.6%
(Cost-$72,678,029) 85,030,678
-----------------------------------------------------
Maturity
Amount
Repurchase Agreement: --------
State Street Bank and
Trust Co. repurchase
agreement, dated 6/30/95,
5.5%, maturing 7/03/95
collateralized by U.S.
Treasury Bond 12.0%,
8/15/31 $10,285,282 10,279,000
-----------------------------------------------------
Total Repurchase Agreement:-11.0%
(Cost-$10,279,000) 10,279,000
-----------------------------------------------------
Total Investments:-101.6%
(Cost-$82,957,029) 95,309,678
-----------------------------------------------------
7
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Other Assets Over Liabilities-(1.6) $(1,467,299)
-----------------------------------------------------
Net Assets--100.0%
(equivalent to $10.535 per share
based on 8,907,336 shares
issued and outstanding) $93,842,379
=====================================================
Lincoln National Bond Fund, Inc.
Statement of Net Assets - Unaudited
June 30, 1995
Par Market
Investments Amount Value
--------- ----------
Long-Term Debt Investments:
U.S. Government and Agency Obligations:-26.0%
-----------------------------------------------------
Federal Home Loan Bank
5.6%, 2/22/99 $4,000,000 $3,847,240
5.8%, 4/20/99 3,000,000 3,000,570
-----------------------------------------------------
Federal Home Loan Mortgage Corp.
4.88%, 06/23/98 3,000,000 2,972,370
-----------------------------------------------------
Federal National Mortgage Association
8.0%, 4/1/17 496,553 505,705
-----------------------------------------------------
FNMA
5.85%, Med Term Note
02/02/98 3,000,000 2,966,580
5.24%, Med Term Note
07/15/98 3,000,000 2,920,350
-----------------------------------------------------
GNMA
9.0%, 5/15/17 320,755 336,790
9.0%, 9/15/19 1,031,932 1,083,518
6.5%, 11/15/23 977,639 938,534
-----------------------------------------------------
U.S. Treasury Bond
12.0%, 8/15/13 500,000 740,155
7.13%, 2/15/23 23,000,000 24,279,260
-----------------------------------------------------
U.S. Treasury Notes
6.0%, 6/30/96 3,000,000 3,007,500
7.88%, 11/15/04 7,000,000 7,791,840
6.5%, 8/15/05 5,000,000 5,103,100
-----------------------------------------------------
59,493,512
Collateralized Mortgage Obligations:-2.7%
-----------------------------------------------------
Federal Home Loan Mortgage Corp. Series 58
8.0% CMO, 4/15/16 1,510,156 1,507,770
-----------------------------------------------------
FNMA Remic
7.6%, 7/25/05 2,000,000 2,029,700
-----------------------------------------------------
Mid State Trust III
9.625%, 4/01/22 347,243 354,039
-----------------------------------------------------
Prudential Home Mortgage
6.7%, 11/25/07 1,500,000 1,476,090
-----------------------------------------------------
Resolution Trust Corp.
9.0%, 9/25/28 273,634 275,147
-----------------------------------------------------
Spiegel Charge Account Trust 2
6.95%, 12/17/01 500,000 507,275
-----------------------------------------------------
6,150,021
Indexed Securities:-2.8%
-----------------------------------------------------
Caterpillar Financial
Services Corporation
4.25%, 1/08/96,
coupon inversely
indexed to 2 year
Italian swap rate
multiplied by 5.11 3,500,000 3,384,500
-----------------------------------------------------
Goldman Sachs Group LP
4.24%, 12/29/95, coupon
inversely indexed to
Euro swap basket
multiplied by 6.5 3,000,000 2,907,300
-----------------------------------------------------
6,291,800
Air Transportation:-2.1%
-----------------------------------------------------
American Airlines Equipment Trust
10.18%, 1/02/13 1,500,000 1,716,915
-----------------------------------------------------
Delta Air Lines, Inc.
8.25%, Med Term Note,
12/27/07 1,500,000 1,576,395
-----------------------------------------------------
United Airline Inc. Equipment Trust
9.35%, 4/07/16 1,500,000 1,583,625
-----------------------------------------------------
4,876,935
Aluminum:-0.4%
-----------------------------------------------------
Alcan Aluminum LTD - Debentures
9.7%, 10/15/96 $250,000 $260,795
8.875%, 1/15/22 500,000 539,755
-----------------------------------------------------
800,550
Banking and Insurance:-6.7%
-----------------------------------------------------
Banc One Corp.
9.875%, 3/01/09 500,000 615,410
-----------------------------------------------------
Barclays Bank Services
3.56%, 2/14/49 2,000,000 1,725,000
-----------------------------------------------------
Dow Capital B V
9.0%, 5/15/10 3,000,000 3,523,710
-----------------------------------------------------
First Union Corp.
8.0%, 8/15/09 2,000,000 2,065,960
-----------------------------------------------------
First USA Bank
5.75%, 1/15/99 2,000,000 1,936,580
-----------------------------------------------------
Fleet Financial Group
7.65%, 9/01/99 1,000,000 1,028,300
-----------------------------------------------------
Fleet/Norstar Financial Group Inc.
7.65%, 3/01/97 500,000 508,810
-----------------------------------------------------
Great Western Bank
10.25% Subordinated
Notes, 6/15/00 500,000 556,420
-----------------------------------------------------
Harris Bankcorp Inc.
9.375% Subordinated
Notes, 6/1/01 250,000 282,313
-----------------------------------------------------
National Westminster Bancorp
3.69%, 7/30/49 3,000,000 2,557,500
-----------------------------------------------------
National Westminster Bank p.l.c.
9.45% Debentures,
5/01/01 500,000 565,680
-----------------------------------------------------
15,365,683
Broadcasting:-0.2%
-----------------------------------------------------
Viacom Inc.
8.75%, 5/15/01 500,000 518,125
-----------------------------------------------------
Building Materials:-0.5%
-----------------------------------------------------
Georgia Pacific Corp.
10.1%, 6/15/02 1,000,000 1,161,610
-----------------------------------------------------
Entertainment:-0.9%
-----------------------------------------------------
Time Warner Inc.
8.88%, 10/01/12 500,000 532,585
9.125%, 1/15/13 1,500,000 1,569,105
-----------------------------------------------------
2,101,690
Finance:-15.6%
-----------------------------------------------------
Aristar Finance
7.5% Senior Subordinate
Note, 7/1/99 1,500,000 1,550,205
-----------------------------------------------------
AT & T Capital Corp.
7.47%, 5/11/05 2,750,000 2,861,100
-----------------------------------------------------
Avco Financial Services Inc.
7.25%, 7/15/99 1,000,000 1,027,790
-----------------------------------------------------
Beneficial Corp.
9.0% Med. Term Notes,
1/19/96 1,250,000 1,270,213
-----------------------------------------------------
Chrysler Financial Corporation
9.5%, 12/15/99 1,500,000 1,660,890
-----------------------------------------------------
Discover Credit Corp.
8.73% Med. Term Note,
8/15/96 500,000 514,245
-----------------------------------------------------
Ford Motor Credit Co.
8.875% Med. Term Note,
5/1/96 2,000,000 2,042,840
-----------------------------------------------------
General Motors Acceptance Corp.
7.85%, 11/15/97 1,500,000 1,544,565
8.88%, 6/01/10 1,500,000 1,760,565
-----------------------------------------------------
Household Affinity Credit Card
6.05%, 5/15/01 1,000,000 984,390
-----------------------------------------------------
Household Finance Corp.
9.63% Senior
Subordinated Note,
7/15/00 875,000 981,435
-----------------------------------------------------
International Lease Finance Co
9.8%, 7/27/95 500,000 501,275
8.25%, 1/15/00 2,000,000 2,122,320
-----------------------------------------------------
John Deere Capital Corp.
8.27% Med. Term Note,
8/8/95 500,000 501,300
-----------------------------------------------------
Salomon Inc.
7.25%, 1/15/00 1,500,000 1,499,715
-----------------------------------------------------
Student Loan Marketing Association
4.63%, 3/02/99 15,000,000 14,710,500
-----------------------------------------------------
35,533,348
</TABLE>
8
<PAGE>
Par Market
Amount Value
---------- ----------
Food and Beverage:-2.0%
-----------------------------------------------------
Coca Cola Enterprises Inc.
8.0%, 1/04/05 $2,310,000 $2,550,910
-----------------------------------------------------
ConAgra, Inc.
9.88%, 11/15/05 1,000,000 1,216,420
-----------------------------------------------------
Nabisco Inc.
7.55%, 6/15/15 750,000 742,297
-----------------------------------------------------
4,509,627
Foreign Government:-2.1%
-----------------------------------------------------
Hydro-Quebec
7.20%, Med Term
Note 10/05/09 3,000,000 3,281,700
-----------------------------------------------------
Manitoba (Province of)
7.75%, 7/07/26 1,500,000 1,576,545
-----------------------------------------------------
4,858,245
Machinery and Engineering:-1.0%
-----------------------------------------------------
Deere & Company
8.27%, 8/08/95 2,000,000 2,251,240
-----------------------------------------------------
Metals and Mining:-1.4%
-----------------------------------------------------
Newmont Gold Company Psthr
8.91%, 1/05/09 750,000 806,437
-----------------------------------------------------
Noranda Inc.
8.13%, 6/15/04 2,000,000 2,130,360
-----------------------------------------------------
Reynolds Metals Co.
9.0%, 8/15/03 250,000 281,737
-----------------------------------------------------
3,218,534
Miscellaneous:-1.2%
-----------------------------------------------------
Duquesne II Funding Corporation
8.7%, 6/01/16 2,479,000 2,605,379
-----------------------------------------------------
Motor Vehicles and Equipment:-0.5%
-----------------------------------------------------
General Motors Corp.
8.17%, 1/02/00 1,057,863 1,105,805
-----------------------------------------------------
Office and Business Equipment and Services:-0.2%
-----------------------------------------------------
Xerox Corporation - Euronote
8.375%, 9/25/96 500,000 512,430
-----------------------------------------------------
Paper:-0.7%
-----------------------------------------------------
Champion International Corp.
7.7%, 12/15/99 1,500,000 1,558,800
-----------------------------------------------------
Petroleum and Petroleum Related:-6.0%
-----------------------------------------------------
Atlantic Richfield Co.
10.25% Eurobond,
7/02/00 1,000,000 1,077,260
9.88%, 3/01/16 2,000,000 2,515,940
-----------------------------------------------------
Enron Corp.
9.5%, 6/15/01 1,000,000 1,134,410
-----------------------------------------------------
Enserch Corp.
7.0%, 8/15/99 1,500,000 1,518,000
-----------------------------------------------------
Noble Affiliates Inc.
7.25%, 10/15/23 600,000 564,852
-----------------------------------------------------
Occidental Petroleum Corp.
11.75%, 3/15/11 2,000,000 2,161,600
-----------------------------------------------------
Panhandle Eastern Pipe Line Co.
9.875%, 10/15/96 248,000 258,123
-----------------------------------------------------
Petro Canada - Debentures
8.60%, 10/15/01 1,500,000 1,623,090
-----------------------------------------------------
Tenneco Inc.
10.0%, 8/01/98 2,500,000 2,741,900
-----------------------------------------------------
13,595,175
Public Utilities:-15.9%
-----------------------------------------------------
Arkla Inc.
8.875%, 7/15/99 500,000 525,605
-----------------------------------------------------
Carolina Power & Light Company
9.0%, 4/01/22 500,000 536,670
-----------------------------------------------------
Central Maine Power Company
6.5%, 7/22/97 1,500,000 1,482,390
-----------------------------------------------------
Cleveland Electric Illuminating Company
8.26% Med. Term
Note, 10/30/98 2,500,000 2,497,525
-----------------------------------------------------
Commonwealth Edison Co.
9.375%, 2/15/00 500,000 549,690
-----------------------------------------------------
Consumers Power Company
8.75% 1st Mortgage
Bonds, 2/15/98 1,000,000 1,046,250
8.875% 1st Mortgage,
11/15/99 1,000,000 1,070,760
-----------------------------------------------------
Detroit Edison Company
6.56%, 5/01/01 2,000,000 1,979,760
-----------------------------------------------------
Great Lakes Power Inc.
8.9%, 12/01/99 1,500,000 1,583,130
-----------------------------------------------------
Illinois Power Co.
5.85% 1st Mortgage
Bonds, 10/01/96 625,000 621,919
-----------------------------------------------------
Long Island Lighting Co.
9.63%, 7/01/24 500,000 518,230
-----------------------------------------------------
Nevada Power Co.
7.06%, 5/01/00 1,500,000 1,518,300
-----------------------------------------------------
New Jersey Bell Telephone
7.85%, 11/15/29 1,950,000 2,166,996
-----------------------------------------------------
New York Telephone Co.
6.5%, 3/01/05 1,000,000 971,400
-----------------------------------------------------
Northeast Utilities Series A
8.58%, 12/01/06 982,857 1,055,323
-----------------------------------------------------
Old Dominion Electric Co-op SE
8.76%, 12/01/22 1,600,000 1,756,496
-----------------------------------------------------
Pacificorp
9.15% Med. Term Note,
8/09/11 2,000,000 2,323,840
-----------------------------------------------------
Pennsylvania Power & Light
7.7%, 10/01/09 3,000,000 3,234,750
-----------------------------------------------------
PSI Energy Inc.
8.56% Med. Term Note,
12/27/11 2,000,000 2,206,680
-----------------------------------------------------
Public Service Co. of Colorado
6.375%, 11/01/05 1,500,000 1,420,140
-----------------------------------------------------
Texas Gas Transmission Corp.
8.63%, 4/04/04 1,000,000 1,107,060
-----------------------------------------------------
Texas Utilities Electric Co.
9.85%, 2/05/03 1,500,000 1,748,445
-----------------------------------------------------
Utilicorp United Inc.
10.5%, 12/01/20 2,000,000 2,357,080
-----------------------------------------------------
Washington Water & Power Co.
8.01%, 12/17/01 2,000,000 2,150,700
-----------------------------------------------------
36,429,139
Railroads:-0.8%
-----------------------------------------------------
Burlington Northern RR
6.94%, 1/02/14 500,000 495,940
-----------------------------------------------------
Chicago & Northwestern Holdings Corporation
6.25%, 7/30/12 1,496,890 1,416,806
-----------------------------------------------------
1,912,746
Retail:-1.0%
-----------------------------------------------------
Sears, Roebuck and Co.
9.05%, 2/06/12 2,000,000 2,289,160
-----------------------------------------------------
Securities Dealers:-1.8%
-----------------------------------------------------
Lehman Brothers Holdings Inc.
8.5%, 5/01/07 1,000,000 1,063,540
-----------------------------------------------------
Smith Barney Holdings
7.88%, 10/01/99 3,000,000 3,129,090
-----------------------------------------------------
4,192,630
Telecommunications:-4.0%
-----------------------------------------------------
NYNEX Cap Funding
7.63%, 10/15/09 3,000,000 3,086,250
-----------------------------------------------------
Nynex Corp.
9.55% Debentures,
5/01/10 1,638,700 1,893,223
-----------------------------------------------------
Rochester Telephone Corp.
9% Med. Term Note,
7/19/00 2,000,000 2,206,000
-----------------------------------------------------
Tele-Communications Inc.
6.58%, 2/15/05 2,000,000 2,014,300
-----------------------------------------------------
9,199,773
Total Long-Term Debt Investments--96.5%
(Cost-$213,090,359) 220,531,957
-----------------------------------------------------
9
<PAGE>
<TABLE>
<CAPTION>
Par Market
Amount Value
------ -----
<S> <C> <C>
MONEY MARKET INSTRUMENTS:
A.I. Credit Corp.
6.2%, 7/05/95 $4,785,000 $ 4,780,880
---------------------------------------------------------------------
BellSouth Telecommunications
6.0%, 7/05/95 3,000,000 2,997,500
---------------------------------------------------------------------
General Electric Company
6.11%, 7/05/95 2,951,000 2,951,000
---------------------------------------------------------------------
TOTAL MONEY MARKET INSTRUMENTS--4.7%
(Cost-$10,729,380) 10,729,380
---------------------------------------------------------------------
TOTAL INVESTMENTS--101.2%
(Cost-$223,819,739) 231,261,337
---------------------------------------------------------------------
Other Assets Under Liabilities-(1.2%) (2,644,099)
---------------------------------------------------------------------
NET ASSETS--100.0%
(equivalent to $11.793 per share
based on 19,385,690 shares
issued and outstanding) $228,617,238
=====================================================================
</TABLE>
LINCOLN NATIONAL CAPITAL APPRECIATION
FUND, INC.
STATEMENT OF NET ASSETS - UNAUDITED
June 30, 1995
<TABLE>
<CAPTION>
Number Market
INVESTMENTS of Shares Value
--------- -----
<S> <C> <C>
COMMON STOCKS:
AEROSPACE: -2.4%
---------------------------------------------------------------------
Boeing Co. 20,325 $1,272,853
---------------------------------------------------------------------
Lockheed Martin Corp. 14,050 886,906
---------------------------------------------------------------------
2,159,759
ADVERTISING: -0.7%
---------------------------------------------------------------------
Katz Media Group Inc. * 38,125 605,234
---------------------------------------------------------------------
AIR TRANSPORTATION: -1.5%
---------------------------------------------------------------------
AMR Corp. * 11,275 841,397
---------------------------------------------------------------------
Delta Air Lines, Inc. 6,625 488,594
---------------------------------------------------------------------
1,329,991
BANKING AND INSURANCE: -12.5%
---------------------------------------------------------------------
Ace Ltd. 9,325 270,425
---------------------------------------------------------------------
Alexander & Alexander Services Inc. 23,425 559,272
---------------------------------------------------------------------
American International Group Inc. 4,775 544,350
---------------------------------------------------------------------
Bancorp Hawaii Inc. 12,700 381,000
---------------------------------------------------------------------
Bank of New York, Inc. 31,500 1,271,813
---------------------------------------------------------------------
Barclays PLC (UK) 78,010 838,170
---------------------------------------------------------------------
Chase Manhattan Corp. 12,500 587,500
---------------------------------------------------------------------
Citicorp 15,200 879,700
---------------------------------------------------------------------
First Bank System Inc. 12,550 514,550
---------------------------------------------------------------------
First Hawaiian Inc. 7,300 193,450
---------------------------------------------------------------------
General Re Corporation 10,750 1,439,156
---------------------------------------------------------------------
J.P. Morgan & Co. Incorporated 5,900 413,738
---------------------------------------------------------------------
Progressive Corporation 39,175 1,503,341
---------------------------------------------------------------------
Unum Corporation 39,100 1,832,813
---------------------------------------------------------------------
11,229,278
BROADCASTING: -2.0%
---------------------------------------------------------------------
Heritage Media Corp. * 15,400 444,675
---------------------------------------------------------------------
Renaissance Communication Corporation * 16,000 542,000
---------------------------------------------------------------------
Reuters Holdings (UK) 32,000 266,455
---------------------------------------------------------------------
Viacom Inc. * 1,440 66,960
---------------------------------------------------------------------
Viacom Inc. - Class B 10,910 505,951
---------------------------------------------------------------------
1,826,041
BUILDING MATERIALS: -1.2%
---------------------------------------------------------------------
Georgia Pacific Corp. 12,350 1,071,362
---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number Market
of Shares Value
--------- ----------
<S> <C> <C>
CONSUMER PRODUCTS AND SERVICES: -4.7%
---------------------------------------------------------------------
Coleman Co. Inc. * 33,450 $1,187,475
---------------------------------------------------------------------
Duracell International Inc. 11,425 494,131
---------------------------------------------------------------------
Eastman Kodak Co. 13,450 815,406
---------------------------------------------------------------------
Promus Cos. Inc. * 23,000 901,605
---------------------------------------------------------------------
Wrigley (Wm.) Jr. Co. 17,425 808,084
---------------------------------------------------------------------
4,206,701
CONTAINER: -3.0%
---------------------------------------------------------------------
Crown Cork & Seal Inc. * 53,275 2,670,409
---------------------------------------------------------------------
DRUG AND HOSPITAL SUPPLIES: -7.6%
---------------------------------------------------------------------
Astra AB (Sweden) 37,172 1,147,710
---------------------------------------------------------------------
Elan Corp. PLC * 16,725 681,544
---------------------------------------------------------------------
Merck & Co. Inc. 22,900 1,122,100
---------------------------------------------------------------------
Nellcor Inc. * 10,000 446,250
---------------------------------------------------------------------
Pfizer Inc. 8,875 819,828
---------------------------------------------------------------------
Scherer RP Corp. * 20,750 875,287
---------------------------------------------------------------------
Smithkline Beecham PLC 39,250 1,776,063
---------------------------------------------------------------------
6,868,782
ELECTRICAL AND ELECTRONICS: -3.1%
---------------------------------------------------------------------
Intel Corp. 15,250 965,516
---------------------------------------------------------------------
Texas Instruments Inc. 11,075 1,482,666
---------------------------------------------------------------------
Westinghouse Electric Corp. 24,950 364,894
---------------------------------------------------------------------
2,813,076
ENTERTAINMENT: -4.0%
---------------------------------------------------------------------
Circus Circus Enterprises, Inc. * 11,400 401,850
---------------------------------------------------------------------
Disney (Walt Co.) 28,500 1,585,312
---------------------------------------------------------------------
Mattel Inc. 61,950 1,610,700
---------------------------------------------------------------------
3,597,862
FOOD AND BEVERAGE: -9.3%
---------------------------------------------------------------------
General Mills, Inc. 29,150 1,497,581
---------------------------------------------------------------------
Hershey Foods Corporation 25,750 1,422,687
---------------------------------------------------------------------
Kellogg Co. 21,575 1,539,912
---------------------------------------------------------------------
Nabisco Hldgs Corp. - Class A 52,950 1,429,650
---------------------------------------------------------------------
Pepsico Inc. 14,825 676,391
---------------------------------------------------------------------
Safeway Inc. * 49,225 1,839,784
---------------------------------------------------------------------
8,406,005
HEALTH AND PERSONAL CARE: -1.7%
---------------------------------------------------------------------
Roche Holdings AG - Warrants
(Switzerland) 242 1,559,392
---------------------------------------------------------------------
HOTELS: -2.3%
---------------------------------------------------------------------
Doubletree Corp. * 22,200 482,850
---------------------------------------------------------------------
La Quintainns Inc. 14,625 394,875
---------------------------------------------------------------------
Marriott International Inc. 25,300 907,638
---------------------------------------------------------------------
Prime Hospitality Corp. * 30,000 296,250
---------------------------------------------------------------------
2,081,613
INDUSTRIAL: -0.6%
---------------------------------------------------------------------
First Brands Corp. 13,650 585,244
---------------------------------------------------------------------
MACHINERY AND ENGINEERING: -2.6%
---------------------------------------------------------------------
Agco Corp. 11,225 420,938
---------------------------------------------------------------------
Deere & Company 5,200 445,250
---------------------------------------------------------------------
Sidel 2,588 906,357
---------------------------------------------------------------------
York International Corp 13,450 605,250
---------------------------------------------------------------------
2,377,795
MERCHANDISING: -1.0%
---------------------------------------------------------------------
Catalina Marketing Corp. * 17,500 938,437
---------------------------------------------------------------------
METALS AND MINING: -2.2%
---------------------------------------------------------------------
Minerals Technologies Inc. 46,150 1,661,402
---------------------------------------------------------------------
Potash Corp of Saskatchewan 4,866 271,888
---------------------------------------------------------------------
1,933,290
MISCELLANEOUS: -4.8%
---------------------------------------------------------------------
Dionex Corp.* 22,850 1,042,531
---------------------------------------------------------------------
First Data Corporation 53,400 3,037,125
---------------------------------------------------------------------
Sealed Air Corp. * 5,000 220,000
---------------------------------------------------------------------
4,299,656
</TABLE>
10
<PAGE>
Number Market
of Shares Value
--------- ------
Motor Vehicles and Equipment:-5.3%
----------------------------------------------------------------------------
Diebold Incorporated 12,000 $ 522,000
----------------------------------------------------------------------------
General Motors Corp. Series E 79,250 3,447,375
----------------------------------------------------------------------------
General Motors Corp. Series H 19,400 766,300
----------------------------------------------------------------------------
4,735,675
Office and Business Equipment and Services:-5.4%
----------------------------------------------------------------------------
Hewlett-Packard Co. 12,250 912,625
----------------------------------------------------------------------------
Sap Ag 2,961 3,929,015
----------------------------------------------------------------------------
4,841,640
Paper:-2.5%
----------------------------------------------------------------------------
Alco Standard Corp. 4,500 359,437
----------------------------------------------------------------------------
Boise Cascade Corp. 7,175 290,587
----------------------------------------------------------------------------
Bowater, Inc. 17,700 794,287
----------------------------------------------------------------------------
James River Corporation of Virginia 28,275 781,097
----------------------------------------------------------------------------
2,225,408
Printing and Publishing:-1.7%
----------------------------------------------------------------------------
Reuters Holdings PLC 13,425 672,089
----------------------------------------------------------------------------
Wolters Kluwer NV (Netherlands) 9,975 880,015
----------------------------------------------------------------------------
1,552,104
Railroads:-0.3%
----------------------------------------------------------------------------
Santa Fe Pacific Corporation * 10,000 255,000
----------------------------------------------------------------------------
Retail:-1.9%
----------------------------------------------------------------------------
Federated Department Stores Inc. * 42,500 1,094,375
----------------------------------------------------------------------------
Newell Co. 23,675 580,038
----------------------------------------------------------------------------
1,674,413
Shoes:-1.2%
----------------------------------------------------------------------------
Nine West Group Inc. * 28,875 1,053,938
----------------------------------------------------------------------------
Soaps, Cleaner and Cosmetics:-0.9%
----------------------------------------------------------------------------
Colgate-Palmolive Company 11,375 831,797
----------------------------------------------------------------------------
Telecommunications:-0.8%
----------------------------------------------------------------------------
Tele Communications Inc. * 31,250 732,422
----------------------------------------------------------------------------
Textiles-Apparel Manufacturing:-0.5%
----------------------------------------------------------------------------
Warnaco Group Inc. 22,625 452,500
----------------------------------------------------------------------------
Waste Management:-0.4%
----------------------------------------------------------------------------
Browning Ferris Industries Inc. 11,000 397,375
----------------------------------------------------------------------------
Total Common Stocks:-88.1%
(Cost-$79,312,199) 79,312,199
----------------------------------------------------------------------------
Par Market
Amount Value
------ ------
Money Market Instruments:
Federal Home Loan Bank
5.88%, 7/10/95 $2,000,000 1,997,918
----------------------------------------------------------------------------
Federal Home Loan Mortgage
5.85%, 7/05/95 3,000,000 2,998,050
----------------------------------------------------------------------------
Ford Motor Credit Co.
6.05%, 7/03/95 2,800,000 2,799,059
----------------------------------------------------------------------------
Total Money Market Instruments:-8.6%
(Cost-$7,795,027) 7,795,027
----------------------------------------------------------------------------
Total Investments:-96.7%
(Cost-$79,957,361) 87,107,226
----------------------------------------------------------------------------
Other Assets Over Liabilities-3.3% 2,971,287
----------------------------------------------------------------------------
Net Assets--100.0%
(equivalent to $11.327 per share
based on 7,952,751 shares
issued and outstanding) $90,078,513
============================================================================
Lincoln National Equity Income
Fund, Inc.
Statement of Net Assets - Unaudited
June 30, 1995
Investments
Par Market
Long-Term Debt Investments: Amount Value
------ ------
Air Transportation:-0.1%
----------------------------------------------------------------------------
Delta Air Lines, Inc.
3.23%, 6/15/03 $130,000 $124,475
----------------------------------------------------------------------------
Banking and Insurance:-0.1%
----------------------------------------------------------------------------
Fremont General Corp. - Liquid Yield Option
0.01%, 10/12/13 230,000 87,113
----------------------------------------------------------------------------
NAC Re Corporation
5.25%, 12/15/02 100,000 93,750
----------------------------------------------------------------------------
USF & G Corp.
0.1%, 3/03/09 50,000 27,563
----------------------------------------------------------------------------
208,426
Broadcasting:-0.0%
----------------------------------------------------------------------------
Rogers Communications Inc.
0.0%, 5/20/13 130,000 44,038
----------------------------------------------------------------------------
Building and Construction:-0.1%
----------------------------------------------------------------------------
Cemex
4.25%, 11/01/97 100,000 70,000
----------------------------------------------------------------------------
Coal and Gas:-0.1%
----------------------------------------------------------------------------
Apache Corp
6.0%, 1/15/02 120,000 123,000
----------------------------------------------------------------------------
Consumer Products and Services:-0.2%
----------------------------------------------------------------------------
Comcast Corporation
1.13%, 04/15/07 710,000 335,475
----------------------------------------------------------------------------
Entertainment:-0.4%
----------------------------------------------------------------------------
Time Warner Inc.
0.0%, 6/22/13 1,420,000 569,775
8.75%, 1/10/15 50,000 51,750
----------------------------------------------------------------------------
621,525
Industrial:-0.1%
----------------------------------------------------------------------------
Gencorp Inc.
8.00%, 08/01/02 130,000 126,100
----------------------------------------------------------------------------
Machinery and Engineering:-0.2%
----------------------------------------------------------------------------
Outboard Marine Corporation
7.00%, 07/01/02 310,000 315,813
----------------------------------------------------------------------------
Miscellaneous:-0.2%
----------------------------------------------------------------------------
ADT Operations Inc.
0.0%, 7/06/10 180,000 68,956
----------------------------------------------------------------------------
News Amerhldgs Inc.
0.0%, 3/11/23 360,000 171,000
----------------------------------------------------------------------------
239,956
Office and Business Equipment and Services:-0.1%
----------------------------------------------------------------------------
Automatic Data Processing Inc.
0.0%, 2/20/12 170,000 75,225
----------------------------------------------------------------------------
Paper:-0.3%
----------------------------------------------------------------------------
International Paper Co.
5.75%, 9/23/02 300,000 347,625
----------------------------------------------------------------------------
Stone Container Corp.
8.875%, 7/15/00 50,000 98,563
----------------------------------------------------------------------------
446,188
Petroleum and Petroleum Related:-0.3%
----------------------------------------------------------------------------
Pennzoil Co.
6.5%, 1/15/03 350,000 415,625
----------------------------------------------------------------------------
11
<PAGE>
<TABLE>
<CAPTION>
Par Market
Amount Value
--------- -----------
<S> <C>
Real Estate:-0.0%
-------------------------------------------------------------------------------
Liberty Property LTD Partnership
1.0%, 7/01/01 $ 10,000 $ 9,800
-------------------------------------------------------------------------------
Retail:-0.1%
-------------------------------------------------------------------------------
Baker J. Inc.
7.0%, 6/01/02 160,000 142,400
-------------------------------------------------------------------------------
Price Co.
5.5%, 2/28/12 70,000 65,188
-------------------------------------------------------------------------------
207,588
Steel:-0.0%
-------------------------------------------------------------------------------
Allegheny Ludlum Corporation
5.88%, 3/15/02 20,000 21,950
-------------------------------------------------------------------------------
Textile Products:-0.0%
-------------------------------------------------------------------------------
Unifi Inc.
6.0%, 3/15/02 60,000 59,775
-------------------------------------------------------------------------------
Waste Management:-0.2%
-------------------------------------------------------------------------------
WMX Technologies Inc.
2.0%, 1/24/05 318,000 266,325
-------------------------------------------------------------------------------
Total Long-Term Debt Investments:-2.5%
(Cost-$3,633,729) 3,711,284
-------------------------------------------------------------------------------
Number
Common Stocks: of Shares
---------
U.S. Government and Agency Obligations:-2.3%
-------------------------------------------------------------------------------
Federal National Mortgage Association 35,500 3,350,313
-------------------------------------------------------------------------------
Aerospace:-3.4%
-------------------------------------------------------------------------------
Allied Signal Inc. 21,300 947,850
-------------------------------------------------------------------------------
Lockheed Martin Corp. 25,200 1,590,750
-------------------------------------------------------------------------------
Northrop Grumman Corp. 3,900 203,288
-------------------------------------------------------------------------------
Pall Corp. 5,700 126,825
-------------------------------------------------------------------------------
Textron Inc. 10,600 616,125
-------------------------------------------------------------------------------
United Technologies Corp. 20,900 1,633,103
-------------------------------------------------------------------------------
5,117,941
Aluminum:-0.8%
-------------------------------------------------------------------------------
Aluminum Co. of America 22,700 1,137,838
-------------------------------------------------------------------------------
Banking and Insurance:-9.2%
-------------------------------------------------------------------------------
AllState Corporation 39,300 1,177,613
-------------------------------------------------------------------------------
American Bankers Ins. Group Inc. 8,800 278,300
-------------------------------------------------------------------------------
Banc One Corp. 38,700 1,248,075
-------------------------------------------------------------------------------
Bank Montreal Que (Canada) 4,400 92,400
-------------------------------------------------------------------------------
Bank of New York, Inc. 26,400 1,065,900
-------------------------------------------------------------------------------
BankAmerica Corp. 5,500 289,438
-------------------------------------------------------------------------------
Bankers Trust New York Corp. 5,500 341,000
-------------------------------------------------------------------------------
Boatmens Bancshares Inc. 8,800 309,650
-------------------------------------------------------------------------------
Brascan Ltd 32,300 508,614
-------------------------------------------------------------------------------
Canadian Pac LTD 41,200 715,850
-------------------------------------------------------------------------------
Chemical Banking Corp. 24,100 1,138,725
-------------------------------------------------------------------------------
Cigna Corp. 6,700 520,088
-------------------------------------------------------------------------------
Comerica Inc. 19,200 616,800
-------------------------------------------------------------------------------
Firstar Corporation 5,800 195,025
-------------------------------------------------------------------------------
Fleet Financial Group Inc. 33,300 1,236,263
-------------------------------------------------------------------------------
Fremont General Corporation 11,710 282,504
-------------------------------------------------------------------------------
General Re Corporation 5,300 709,538
-------------------------------------------------------------------------------
National Bank CDA Montreal QUE 13,000 106,710
-------------------------------------------------------------------------------
NationsBank Corp. 8,400 450,450
-------------------------------------------------------------------------------
NBD Bancorp, Inc. 8,600 275,200
-------------------------------------------------------------------------------
Norwest Corporation 6,700 192,625
-------------------------------------------------------------------------------
NWNL Cos. Inc. 9,000 344,250
-------------------------------------------------------------------------------
Republic NY Corp. 6,900 386,400
-------------------------------------------------------------------------------
Travelers Inc. 13,500 590,625
-------------------------------------------------------------------------------
US Life Corporation 500 20,125
-------------------------------------------------------------------------------
Washington Mutual Ins. 28,000 656,250
-------------------------------------------------------------------------------
13,748,418
Number Market
of Shares Value
--------- -----------
Broadcasting:-0.4%
-------------------------------------------------------------------------------
Evergreen Media Corporation 2,200 $ 123,200
-------------------------------------------------------------------------------
Gannett Inc. 9,100 493,675
-------------------------------------------------------------------------------
616,875
Building and Construction:-0.2%
-------------------------------------------------------------------------------
Armstrong World Industries Inc. 6,100 305,763
-------------------------------------------------------------------------------
Kaufman & Broad Home Corp. 4,600 66,700
-------------------------------------------------------------------------------
372,463
Chemicals:-4.0%
-------------------------------------------------------------------------------
Corning Inc. 7,200 235,800
-------------------------------------------------------------------------------
Dow Chemical Co. 2,400 172,500
-------------------------------------------------------------------------------
Du Pont E I De Nemours & Co. 25,300 1,739,375
-------------------------------------------------------------------------------
Eastman Chemical Company 7,500 446,250
-------------------------------------------------------------------------------
Grace WR & Co. 10,100 619,888
-------------------------------------------------------------------------------
Great Lakes Chemical Corp. 11,500 692,875
-------------------------------------------------------------------------------
Imperial Chemical Industries PLC 5,000 243,750
-------------------------------------------------------------------------------
Lubrizol Corp. 3,800 134,425
-------------------------------------------------------------------------------
Montedison SpA * 400 2,850
-------------------------------------------------------------------------------
Nalco Chemical Co. 18,900 687,488
-------------------------------------------------------------------------------
Olin Corp. 1,700 87,550
-------------------------------------------------------------------------------
Union Carbide Corp. 27,800 927,825
-------------------------------------------------------------------------------
5,990,576
Coal and Gas:-1.1%
-------------------------------------------------------------------------------
Pacific Enterprises 39,800 975,100
-------------------------------------------------------------------------------
Panhandle Eastern Corporation 25,000 609,375
-------------------------------------------------------------------------------
1,584,475
Consumer Products and Services:-6.0%
-------------------------------------------------------------------------------
American Brands, Inc. 12,500 496,875
-------------------------------------------------------------------------------
Dimon Inc. 5,850 98,719
-------------------------------------------------------------------------------
Eastman Kodak Co. 7,200 436,500
-------------------------------------------------------------------------------
Fuji Photo Film Co. (Japan) 7,000 166,008
-------------------------------------------------------------------------------
H&R Block Inc. 8,600 353,675
-------------------------------------------------------------------------------
Imasco LTD 35,400 628,231
-------------------------------------------------------------------------------
Johnson & Johnson 15,100 1,021,138
-------------------------------------------------------------------------------
Philip Morris Co. Inc. 61,500 4,574,063
-------------------------------------------------------------------------------
Seagram Company LTD 9,900 342,788
-------------------------------------------------------------------------------
Tambrands Inc. 9,100 389,025
-------------------------------------------------------------------------------
Universal Corporation 4,300 90,300
-------------------------------------------------------------------------------
Whirlpool Corp. 6,400 352,000
-------------------------------------------------------------------------------
8,949,322
Drug and Hospital Supplies:-4.5%
-------------------------------------------------------------------------------
American Home Products Corp. 9,400 727,325
-------------------------------------------------------------------------------
Baxter International Inc. 30,300 1,102,163
-------------------------------------------------------------------------------
Becton, Dickinson & Company 19,800 1,153,350
-------------------------------------------------------------------------------
Bristol Myers Squibb Co. 22,700 1,546,438
-------------------------------------------------------------------------------
Pfizer Inc. 8,700 803,663
-------------------------------------------------------------------------------
Schering-Plough Corporation 14,800 653,050
-------------------------------------------------------------------------------
Warner Lambert Co. 8,100 699,638
-------------------------------------------------------------------------------
6,685,627
Electrical and Electronics:-5.0%
-------------------------------------------------------------------------------
AMP Inc. 6,800 287,300
-------------------------------------------------------------------------------
Cooper Industries, Inc. 17,100 675,450
-------------------------------------------------------------------------------
Entergy Corp. 11,600 279,850
-------------------------------------------------------------------------------
General Electric Co. 58,500 3,297,938
-------------------------------------------------------------------------------
General Signal Corp. 13,000 516,750
-------------------------------------------------------------------------------
Harris Corp. 14,300 738,238
-------------------------------------------------------------------------------
Mitsubishi Elec Cp (Japan) 45,000 316,442
-------------------------------------------------------------------------------
Thomas and Betts Corporation 1,600 109,400
-------------------------------------------------------------------------------
Tyco International LTD 10,300 556,200
-------------------------------------------------------------------------------
Westinghouse Electric Corp. 42,000 614,250
-------------------------------------------------------------------------------
7,391,818
Financial Services:-2.9%
-------------------------------------------------------------------------------
American Express Company 80,400 2,824,050
-------------------------------------------------------------------------------
American Financial Group Inc. 3,600 93,600
-------------------------------------------------------------------------------
Beneficial Corp. 1,500 66,000
-------------------------------------------------------------------------------
Charter One Financial Inc. 1,400 34,388
-------------------------------------------------------------------------------
Dun & Bradstreet Corporation 2,900 152,250
-------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
Number Market
of Shares Value
--------- -----------
Household International Inc. 13,500 $ 668,250
---------------------------------------------------------------
Keycorp 8,800 276,100
---------------------------------------------------------------
Trilon Financial Corp. 39,900 124,914
---------------------------------------------------------------
4,239,552
Food and Beverage:-3.5%
---------------------------------------------------------------
Cadbury Schweppes (UK) 5,529 40,366
---------------------------------------------------------------
CPC International Inc. 3,100 191,425
---------------------------------------------------------------
Fleming Companies, Inc. 11,200 296,800
---------------------------------------------------------------
Great Atlantic and Pacific Tea Inc. 15,700 414,088
---------------------------------------------------------------
Kellogg Co. 10,900 777,988
---------------------------------------------------------------
Pepsico Inc. 12,500 570,313
---------------------------------------------------------------
Ralston Purina Co. 8,300 423,300
---------------------------------------------------------------
RJR Nabisco Holding Corp 68,980 1,922,818
---------------------------------------------------------------
SuperValu Inc. 20,600 599,975
---------------------------------------------------------------
5,237,073
Forest Products:-0.5%
---------------------------------------------------------------
Weyerhaeuser Company 15,500 730,438
---------------------------------------------------------------
Furniture Manufacturing:-0.1%
---------------------------------------------------------------
Masco Corp. 6,200 167,400
---------------------------------------------------------------
Industrial:-1.7%
---------------------------------------------------------------
Armco Inc. * 13,500 91,125
---------------------------------------------------------------
Gencorp Inc. 24,700 265,525
---------------------------------------------------------------
Goulds Pumps Inc. 1,600 35,000
---------------------------------------------------------------
ITT Corp. 4,500 528,750
---------------------------------------------------------------
Johnson Controls Inc. 9,700 548,050
---------------------------------------------------------------
Raytheon Company 8,900 690,863
---------------------------------------------------------------
TRW Inc. 5,000 399,375
---------------------------------------------------------------
Zurn Inds Inc. 2,700 54,025
---------------------------------------------------------------
2,612,713
Machinery and Engineering:-1.1%
---------------------------------------------------------------
Caterpillar Inc. 8,000 514,000
---------------------------------------------------------------
Crane Co. 12,800 464,000
---------------------------------------------------------------
Deere & Company 7,200 616,500
---------------------------------------------------------------
1,594,500
Metals and Mining:-1.0%
---------------------------------------------------------------
Inco Limited 11,200 316,400
---------------------------------------------------------------
Lukens Inc. 3,300 106,425
---------------------------------------------------------------
Noranda Inc. 20,100 395,122
---------------------------------------------------------------
Reynolds Metals Co. 14,200 734,850
---------------------------------------------------------------
1,552,797
Miscellaneous:-2.6%
---------------------------------------------------------------
Bergen Brunswig Corporation 7,105 162,527
---------------------------------------------------------------
Dave & Busters Inc. 2,300 0
---------------------------------------------------------------
Dexter Corp. 9,400 222,075
---------------------------------------------------------------
European Vinyls Corp. Intl. NV * 2,800 130,468
---------------------------------------------------------------
Grand Metropolitan 45,100 276,540
---------------------------------------------------------------
Illinova Corporation 31,200 791,700
---------------------------------------------------------------
Keystone International, Inc. 18,900 370,913
---------------------------------------------------------------
Omron Corporation 20,000 382,278
---------------------------------------------------------------
PMI Group Inc. 1,200 52,050
---------------------------------------------------------------
Ralcorp Holdings Inc. * 8,400 192,150
---------------------------------------------------------------
Safety Kleen Corporation 15,700 253,163
---------------------------------------------------------------
Snap On Inc. 14,300 554,349
---------------------------------------------------------------
St Paul Capital LLC 3,000 156,750
---------------------------------------------------------------
U S Inds Inc. * 19,100 260,238
---------------------------------------------------------------
3,805,201
Motor Vehicles and Equipment:-4.4%
---------------------------------------------------------------
Chrysler Corp. 41,200 1,972,450
---------------------------------------------------------------
Ford Motor Company 28,200 838,950
---------------------------------------------------------------
General Motors Corp. 45,400 2,131,270
---------------------------------------------------------------
General Motors Corp. Series H 9,700 383,150
---------------------------------------------------------------
Genuine Parts Company 16,000 606,000
---------------------------------------------------------------
Goodrich BF Company 10,200 546,975
---------------------------------------------------------------
6,478,795
Office and Business Equipment and Services:-4.3%
---------------------------------------------------------------
Digital Equipment Corp. * 34,600 1,409,950
---------------------------------------------------------------
International Business Machines 30,800 2,956,800
---------------------------------------------------------------
Moore Corporation LTD 26,500 586,313
---------------------------------------------------------------
New England Business Services Inc. 3,400 67,150
---------------------------------------------------------------
Standard Register 9,900 189,338
---------------------------------------------------------------
Wallace Computer Ser Inc. 4,000 153,500
---------------------------------------------------------------
Xerox Corp. 9,300 1,090,425
---------------------------------------------------------------
6,453,476
Paper:-1.2%
---------------------------------------------------------------
International Paper Co. 10,100 866,075
---------------------------------------------------------------
Scott Paper Co. 15,400 762,300
---------------------------------------------------------------
Westvaco Corp. 4,700 207,975
---------------------------------------------------------------
1,836,350
Petroleum and Petroleum Related:-12.0%
---------------------------------------------------------------
Amerada Hess Corporation 22,300 1,089,913
---------------------------------------------------------------
Amoco Corp. 13,500 899,438
---------------------------------------------------------------
Atlantic Richfield Co. 31,400 1,846,525
---------------------------------------------------------------
Baker Hughes, Inc. 22,000 451,000
---------------------------------------------------------------
British Peteroleum PLC 35,630 3,050,819
---------------------------------------------------------------
Chevron Corp. 12,100 564,163
---------------------------------------------------------------
Diamond Shamrock Inc. 1,400 75,600
---------------------------------------------------------------
Enron Corp. 11,900 417,988
---------------------------------------------------------------
Enserch Corp. 7,900 135,288
---------------------------------------------------------------
Exxon Corp. 7,900 557,938
---------------------------------------------------------------
GATX 8,000 377,000
---------------------------------------------------------------
Halliburton Co. 16,700 597,025
---------------------------------------------------------------
Kerr McGee Corp. 6,000 321,750
---------------------------------------------------------------
Mobil Corp. 9,500 912,000
---------------------------------------------------------------
Occidental Petroleum Corp. 12,500 740,625
---------------------------------------------------------------
Phillips Petroleum Co. 12,000 400,500
---------------------------------------------------------------
Royal Dutch Petroleum Co. 3,900 475,313
---------------------------------------------------------------
Schlumberger LTD 34,800 2,161,950
---------------------------------------------------------------
Texaco Inc. 2,100 137,813
---------------------------------------------------------------
Total S A 12,600 381,150
---------------------------------------------------------------
Unocal Corp. 54,400 1,502,800
---------------------------------------------------------------
Williams Companies, Inc. * 7,200 251,100
---------------------------------------------------------------
Witco Corporation 18,200 586,950
---------------------------------------------------------------
17,934,648
Photography:-0.2%
---------------------------------------------------------------
Akzo Nobel NV 5,000 299,375
---------------------------------------------------------------
Printing and Publishing:-0.8%
---------------------------------------------------------------
Deluxe Corp. 11,300 374,313
---------------------------------------------------------------
Dow Jones & Co. Inc. 7,200 265,500
---------------------------------------------------------------
Harland John H Co. 9,200 210,450
---------------------------------------------------------------
McGraw Hill Inc. 1,600 121,400
---------------------------------------------------------------
Readers Digest Assn Inc. 3,700 163,263
---------------------------------------------------------------
1,134,926
Public Utilities:-1.3%
---------------------------------------------------------------
Cinergy Corp. 5,000 131,250
---------------------------------------------------------------
DPL Inc. 6,300 139,388
---------------------------------------------------------------
DQE Inc. 5,000 117,500
---------------------------------------------------------------
MCN Corp. 14,400 284,400
---------------------------------------------------------------
Niagara Mohawk Power Co. 10,000 147,500
---------------------------------------------------------------
Pacificorp 10,000 187,500
---------------------------------------------------------------
Peco Energy Company 8,000 221,000
---------------------------------------------------------------
Portland General 10,000 221,250
---------------------------------------------------------------
Unicom Corp. 16,500 439,313
---------------------------------------------------------------
1,889,101
Railroads:-0.7%
---------------------------------------------------------------
Burlington Northern Inc. 17,100 1,083,713
---------------------------------------------------------------
Real Estate:-0.7%
---------------------------------------------------------------
Equity Residential PPTY TR 12,200 340,075
---------------------------------------------------------------
Lennar Corp. 4,800 90,000
---------------------------------------------------------------
Pinnacle West Capital Corp. 18,000 441,000
---------------------------------------------------------------
Pulte Corp. 900 25,200
---------------------------------------------------------------
Spieker Propertys Inc. 1,500 33,563
---------------------------------------------------------------
Storage Equities Inc. 6,100 99,888
---------------------------------------------------------------
1,029,726
13
<PAGE>
<TABLE>
<CAPTION>
Number Market
of Shares Value
--------- -----
<S> <C> <C>
RETAIL:-3.5%
---------------------------------------------------------------------------
Dayton Hudson Corp. 10,800 $774,900
---------------------------------------------------------------------------
Dillard Department Stores Inc. 10,300 302,563
---------------------------------------------------------------------------
Edison Brothers Stores Inc. 11,500 178,250
---------------------------------------------------------------------------
Fingerhut Cos. Inc. 10,200 159,375
---------------------------------------------------------------------------
Hudsons Bay Co. (Canada) 4,000 79,359
---------------------------------------------------------------------------
Jostens Inc. 11,500 244,375
---------------------------------------------------------------------------
K Mart Corp. 11,700 171,113
---------------------------------------------------------------------------
Limited Inc. 21,000 462,000
---------------------------------------------------------------------------
May Department Stores Co. 15,000 624,375
---------------------------------------------------------------------------
Sears, Roebuck and Co. 28,700 1,718,413
---------------------------------------------------------------------------
TJX Cos. Inc. 15,600 206,700
---------------------------------------------------------------------------
Wal-Mart Stores 8,900 238,061
---------------------------------------------------------------------------
5,159,484
SAVINGS AND LOAN:-1.1%
---------------------------------------------------------------------------
Ahmanson H F and Co. 2,500 55,000
---------------------------------------------------------------------------
First Chicago Corp. 12,500 748,438
---------------------------------------------------------------------------
First Fidelity Bancorp New 11,000 649,000
---------------------------------------------------------------------------
Great Western Financial Corp. 11,800 243,636
---------------------------------------------------------------------------
1,696,074
SECURITIES DEALERS:-0.4%
---------------------------------------------------------------------------
Bear, Stearns & Co. Inc 7,665 163,839
---------------------------------------------------------------------------
First Marathon Inc. 25,000 263,924
---------------------------------------------------------------------------
Lehman Brothers Holdings Inc. 5,380 117,688
---------------------------------------------------------------------------
Painewebber Group Inc. 5,100 96,263
---------------------------------------------------------------------------
641,714
SHOES:-0.2%
---------------------------------------------------------------------------
Melville Corp. 9,400 321,950
---------------------------------------------------------------------------
SOAPS, CLEANER AND COSMETICS:-0.6%
---------------------------------------------------------------------------
Avon Products, Inc. 5,700 381,900
---------------------------------------------------------------------------
Dial Corp. 18,900 467,775
---------------------------------------------------------------------------
849,675
STEEL:-0.0%
---------------------------------------------------------------------------
Macerich Company 400 7,850
---------------------------------------------------------------------------
TELECOMMUNICATIONS:-5.3%
---------------------------------------------------------------------------
ALC Communications Corp 3,100 139,888
---------------------------------------------------------------------------
Ameritech Corp. 41,500 1,826,000
---------------------------------------------------------------------------
Bell Atlantic Corp. 18,600 1,041,600
---------------------------------------------------------------------------
Bellsouth Corp. 16,700 1,060,450
---------------------------------------------------------------------------
Frontier Corp. 17,600 422,400
---------------------------------------------------------------------------
Nynex Corp. 40,900 1,646,225
---------------------------------------------------------------------------
Pacific Telesis Group 7,000 187,250
---------------------------------------------------------------------------
SBC Communications Inc. 28,000 1,333,500
---------------------------------------------------------------------------
Sprint Corp. 1,100 38,225
---------------------------------------------------------------------------
U S West, Inc. 4,900 215,039
---------------------------------------------------------------------------
7,910,577
TEXTILES-APPAREL MANUFACTURING:-0.0%
---------------------------------------------------------------------------
Stride Rite Corp. 2,500 25,938
---------------------------------------------------------------------------
TEXTILE PRODUCTS:-0.2%
---------------------------------------------------------------------------
Unifi Inc. 13,700 328,800
---------------------------------------------------------------------------
TRANSPORTATION:-0.8%
---------------------------------------------------------------------------
CSX Corp. 16,300 1,224,538
---------------------------------------------------------------------------
WASTE MANAGEMENT:-1.4%
---------------------------------------------------------------------------
Betz Laboratories Inc. 9,000 407,250
---------------------------------------------------------------------------
Browning Ferris Industries Inc. * 4,000 146,000
---------------------------------------------------------------------------
WMX Technologies Inc. 52,600 1,492,525
---------------------------------------------------------------------------
2,045,775
TOTAL COMMON STOCKS:-89.4%
(Cost-$118,673,585) 133,237,825
---------------------------------------------------------------------------
PREFERRED STOCKS:
Alexander & Alexander Services Inc. 2,300 117,300
---------------------------------------------------------------------------
Alumax Inc. 6,100 817,400
---------------------------------------------------------------------------
Armco Inc. 1,500 78,563
---------------------------------------------------------------------------
Chiquita Brands International Inc. 1,900 83,600
---------------------------------------------------------------------------
Ford Motor Co. 4,500 437,063
---------------------------------------------------------------------------
Kaiser Alum Corp. 17,200 232,200
---------------------------------------------------------------------------
National Semiconductor Corp. 1,800 177,525
---------------------------------------------------------------------------
Norwest Corporation 10,200 810,900
---------------------------------------------------------------------------
Reynolds Metals Co. 1,700 82,025
---------------------------------------------------------------------------
Times Mirror Co. 7,967 190,212
---------------------------------------------------------------------------
Travelers Inc. 500 31,375
---------------------------------------------------------------------------
US Surgical Inc. 6,600 168,300
---------------------------------------------------------------------------
Williams Companies Inc. 500 30,142
---------------------------------------------------------------------------
TOTAL PREFERRED STOCKS:-2.2%
(Cost-$2,925,004) 3,256,605
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Maturity
REPURCHASE AGREEMENT: Amount
------
<S> <C> <C>
State Street Bank and Trust Co. repurchase
agreement dated 6/30/95, 5.5%, maturing
7/03/95 collateralized by U.S. Treasury
Bonds 12.0%, 8/15/31 $10,484,403 10,478,000
---------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT:-7.0%
(Cost-$10,478,000) 10,478,000
---------------------------------------------------------------------------
TOTAL INVESTMENTS:-101.1%
(Cost-$135,710,318) 150,683,714
---------------------------------------------------------------------------
Other Assets Under Liabilities-(1.1%) (1,666,050)
---------------------------------------------------------------------------
NET ASSETS--100.0%
(equivalent to $11.955 per share
based on 12,464,307 shares
issued and outstanding) $149,017,664
===========================================================================
</TABLE>
LINCOLN NATIONAL GLOBAL ASSET
ALLOCATION FUND, INC.
STATEMENT OF NET ASSETS - UNAUDITED
June 30, 1995
<TABLE>
<CAPTION>
Par Market
INVESTMENTS Amount** Value
-------- -----
<S> <C> <C>
LONG-TERM DEBT INVESTMENTS:
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS:-15.7%
---------------------------------------------------------------------------
FNMA
6.0%, 1/01/99 $1,450,000 $1,404,688
9.0%, 3/25/00 13,448 13,340
9.5%, 5/01/07 1,595,117 1,669,880
7.5%, 7/01/07 478,454 486,664
7.5%, 2/01/14 949,058 951,727
7.5%, 5/01/17 39,889 40,285
.01%, 5/25/17 110,952 108,437
7.5%, 7/01/23 675,871 677,770
7.0%, 10/25/23 961,131 904,357
7.5%, 6/01/24 246,909 247,602
7.5%, 6/01/24 48,914 49,052
7.5%, 6/01/24 257,601 258,324
7.5%, 7/01/24 165,275 165,740
7.5%, 7/01/24 719,009 721,029
7.5%, 7/01/24 433,075 434,292
7.5%, 7/01/24 78,335 78,556
7.5%, 8/01/24 568,033 569,629
---------------------------------------------------------------------------
GNMA
6.0%, 1/15/99 745,000 715,433
6.5%, 1/15/99 730,000 721,331
11.0%, 12/15/15 88,285 97,997
11.0%, 12/15/15 106,923 118,685
11.0%, 12/15/15 9,500 10,545
7.5%, 12/15/22 604,912 607,936
7.5%, 3/15/23 485,893 488,323
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
Par Market
Amount Value
------ ------
<S> <C> <C>
7.5%, 4/15/23 $422,054 $424,164
7.5%, 4/15/23 548,487 551,230
7.5%, 9/15/23 24,615 24,738
7.5%, 9/15/23 400,602 402,605
7.5%, 10/15/23 165,384 166,211
7.5%, 10/15/23 267,088 268,424
7.5%, 12/15/23 207,809 208,848
7.5%, 1/15/24 494,125 496,596
7.5%, 1/15/24 197,112 198,098
7.5%, 1/15/24 138,391 139,083
7.5%, 4/15/24 162,010 162,820
-----------------------------------------------------------------------------
U.S. Treasury Bonds
10.375%, 11/15/12 3,690,000 4,888,091
8.13%, 8/15/19 3,195,000 3,727,162
8.0%, 11/15/21 + 590,000 681,819
-----------------------------------------------------------------------------
U.S. Treasury Notes
7.125%, 2/29/00 1,750,000 1,828,200
6.875%, 3/31/00 1,920,000 1,987,200
6.875%, 4/30/00 1,325,000 1,365,577
7.875%, 8/15/01 1,400,000 1,528,185
-----------------------------------------------------------------------------
U.S. Treasury Strips *
0.0%, 11/15/99 815,000 630,100
0.0%, 8/15/00 2,090,000 1,542,740
0.0%, 11/15/00 1,470,000 1,068,957
0.0%, 8/15/02 680,000 440,592
0.0%, 2/15/03 1,295,000 811,778
-----------------------------------------------------------------------------
35,084,840
COLLATERALIZED MORTGAGE OBLIGATIONS:-0.9%
-----------------------------------------------------------------------------
Citicorp Mtg Secs Inc.
5.75, 12/01/08 885,000 833,051
-----------------------------------------------------------------------------
Standard Cr Card Master TR I
8.25%, 11/07/03 1,000,000 1,081,300
-----------------------------------------------------------------------------
1,914,351
BANKING AND INSURANCE:-0.7%
-----------------------------------------------------------------------------
Capital One Bank
8.625%, 1/15/97 980,000 1,008,880
-----------------------------------------------------------------------------
First National Bank Boston
8.0%, 9/15/04 525,000 557,682
-----------------------------------------------------------------------------
1,566,562
FINANCIAL SERVICES:-1.4%
-----------------------------------------------------------------------------
Associates Corporation of North America *
5.49%, 1/28/99 650,000 632,730
-----------------------------------------------------------------------------
Banponce Fin'l Corp *
6.16%, 7/30/98 400,000 395,484
-----------------------------------------------------------------------------
General Electric Capital Mortgage Services Inc.
6.0%, 2/25/24 600,000 591,611
-----------------------------------------------------------------------------
Green Tree Financial Corp.
4.85%, 1/15/19 249,980 246,433
6.8%, 5/15/26 443,823 445,208
-----------------------------------------------------------------------------
McDonnell Douglas Financial Corp.
8.15%, 10/15/96 500,000 510,750
-----------------------------------------------------------------------------
Merrill Lynch Mortgage Invest. Inc.
10.35%, 5/15/09 237,385 255,189
-----------------------------------------------------------------------------
3,077,405
FOREIGN GOVERNMENT:-8.5%
-----------------------------------------------------------------------------
Canada (Government of)
7.5%, 7/01/97 250,000 183,327
9.0%, 12/01/04 525,000 408,284
-----------------------------------------------------------------------------
Denmark (Kingdom of)
8.0%, 8/15/06 9,040,000 1,591,897
7.0%, 11/10/24 5,035,000 733,737
-----------------------------------------------------------------------------
France (Government of)
7.0%, 11/12/99 5,060,000 1,039,056
7.75%, 4/12/00 3,810,000 803,184
8.5%, 11/25/21 9,770,000 2,133,720
-----------------------------------------------------------------------------
Germany (Republic of)
7.375%, 1/03/05 2,830,000 2,093,492
6.875%, 5/12/05 1,130,000 813,595
6.25%, 1/04/24 2,595,000 1,589,388
-----------------------------------------------------------------------------
Hydro-Quebec
8.50%, 12/01/29 600,000 648,209
-----------------------------------------------------------------------------
Italy (Republic Of)
8.50%, 04/01/99 980,000,000 536,402
12.00%, 01/01/03 1,935,000,000 1,177,852
8.50%, 04/01/04 2,525,000,000 1,233,296
-----------------------------------------------------------------------------
Quebec (Province of)
7.125%, 2/09/24 585,000 541,739
-----------------------------------------------------------------------------
Sweden (Kingdom of)
10.25%, 5/05/00 7,600,000 1,032,702
-----------------------------------------------------------------------------
United Kingdom Treasury
9.75%, 8/27/02 1,160,000 1,972,502
8.7%, 9/27/13 340,000 516,463
-----------------------------------------------------------------------------
19,048,845
MACHINERY AND ENGINEERING:-0.2%
-----------------------------------------------------------------------------
AMBAC Inc *
9.38%, 08/01/11 400,000 482,708
-----------------------------------------------------------------------------
MISCELLANEOUS:-0.4%
-----------------------------------------------------------------------------
Petroliam Nasional Berha
6.875%, 7/01/03 575,000 471,500
-----------------------------------------------------------------------------
RBSG Capital Corporation
10.125%, 3/01/04 450,000 540,690
-----------------------------------------------------------------------------
1,012,190
OFFICE AND BUSINESS EQUIPMENT AND
SERVICES:-0.4%
-----------------------------------------------------------------------------
Comdisco Inc. *
7.75%, 09/01/99 800,000 831,470
-----------------------------------------------------------------------------
PETROLEUM AND PETROLEUM RELATED:-0.5%
-----------------------------------------------------------------------------
Occidental Petroleum Corp.
9.25% Senior Debentures, 8/1/19 925,000 1,068,474
-----------------------------------------------------------------------------
PUBLIC UTILITIES:-1.3%
-----------------------------------------------------------------------------
Commonwealth Edison Co.
6.00%, 03/15/98 600,000 589,244
6.50%, 04/15/00 500,000 495,420
-----------------------------------------------------------------------------
Iberdrolaintl B V
7.50%, 10/01/02 725,000 746,847
-----------------------------------------------------------------------------
Long Island Lighting Co.
5.25%, 03/01/96 350,000 346,857
-----------------------------------------------------------------------------
Public Service Co.
8.875%, 05/15/96 400,000 406,748
-----------------------------------------------------------------------------
Puget Sound Power & Light Company
7.88%, 10/01/97 400,000 412,404
-----------------------------------------------------------------------------
2,997,520
RETAIL:-0.5%
-----------------------------------------------------------------------------
Sears, Roebuck and Co.
9.42%, 4/03/96 350,000 358,061
8.45%, 11/01/98 500,000 531,348
-----------------------------------------------------------------------------
Wal-Mart Stores
1.0%, 9/15/06 300,000 328,601
-----------------------------------------------------------------------------
1,218,010
SECURITIES DEALERS:-0.3%
-----------------------------------------------------------------------------
Smith Barney Holdings
7.0%, 5/15/00 570,000 577,765
-----------------------------------------------------------------------------
TRANSPORTATION:-0.3%
-----------------------------------------------------------------------------
The Penn Central Corp.
10.625%, 4/15/00 600,000 601,976
-----------------------------------------------------------------------------
WASTE MANAGEMENT:-0.2%
-----------------------------------------------------------------------------
Waste Management Inc.
8.75%, 5/01/18 350,000 397,508
-----------------------------------------------------------------------------
TOTAL LONG-TERM DEBT INVESTMENTS:-31.3%
(Cost - $68,417,038) 69,879,624
-----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number Market
COMMON STOCKS: of Shares Value
--------- -----
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS:-0.5%
-----------------------------------------------------------------------------
Federal National Mortgage Association 12,700 1,198,563
-----------------------------------------------------------------------------
</TABLE>
15
<PAGE>
Number Market
of Shares Value
--------- ------
Aerospace:-1.3%
-------------------------------------------------------------------------
Allied Signal Inc. 13,900 $ 618,550
-------------------------------------------------------------------------
Boeing Co. 12,950 810,994
-------------------------------------------------------------------------
Lockheed Martin Corp. 10,300 650,188
-------------------------------------------------------------------------
McDonnell Douglas Corporation 6,700 514,225
-------------------------------------------------------------------------
United Technologies Corp. 3,950 308,594
-------------------------------------------------------------------------
2,902,551
Air Transportation:-0.2%
-------------------------------------------------------------------------
KLM 5,340 173,348
-------------------------------------------------------------------------
Singapore Airlines (Singapore) 26,000 240,000
-------------------------------------------------------------------------
413,348
Banking and Insurance:-6.8%
-------------------------------------------------------------------------
ABN Amro Holdings NV (Netherlands) 4,280 165,178
-------------------------------------------------------------------------
Aegon NV (Netherlands) * 7,300 252,520
-------------------------------------------------------------------------
Aetna Life & Casualty Co. 8,300 521,863
-------------------------------------------------------------------------
Allied Irish Banks (Ireland) 68,090 322,062
-------------------------------------------------------------------------
American International Group, Inc. 4,900 558,600
-------------------------------------------------------------------------
Aon Corp. 12,800 476,800
-------------------------------------------------------------------------
Asahi Bank (Japan) 28,000 298,979
-------------------------------------------------------------------------
BankAmerica Corp. 34,400 1,810,300
-------------------------------------------------------------------------
Bankers Trust New York Corp. 11,550 716,100
-------------------------------------------------------------------------
Barclays PLC (UK) 16,191 173,962
-------------------------------------------------------------------------
Barnett Banks Inc. 10,200 522,750
-------------------------------------------------------------------------
Cigna Corp. 13,250 1,028,531
-------------------------------------------------------------------------
Citicorp * 15,400 891,275
-------------------------------------------------------------------------
Corestates Financial Corp. 14,450 503,944
-------------------------------------------------------------------------
CRA Managed Care Inc. * 2,850 64,838
-------------------------------------------------------------------------
Credit Local De France (France) 3,500 324,655
-------------------------------------------------------------------------
Development Bank Singapore (Singapore) 27,000 307,191
-------------------------------------------------------------------------
First Bank System Inc. 11,000 451,000
-------------------------------------------------------------------------
Fleet Financial Group Inc. 16,321 605,917
-------------------------------------------------------------------------
HCC Insurance Holdings Inc. * 4,250 110,500
-------------------------------------------------------------------------
Health Wise Amer. Inc. 2,575 66,306
-------------------------------------------------------------------------
HSBC Holdings PLC (Hong Kong) 26,162 335,571
-------------------------------------------------------------------------
J.P. Morgan & Co. Incorporated 14,400 1,009,800
-------------------------------------------------------------------------
Life Partners Group Inc. 2,635 52,700
-------------------------------------------------------------------------
Mitsubishi Bank (Japan) 13,000 280,691
-------------------------------------------------------------------------
Mitsui Marine & Fire Insurance Co. (Japan) 29,000 190,242
-------------------------------------------------------------------------
NationsBank Corp. 9,400 504,075
-------------------------------------------------------------------------
Reinsurance Group America Inc. 3,200 91,600
-------------------------------------------------------------------------
Reliance Group Holdings Inc. 44,700 290,550
-------------------------------------------------------------------------
Royal Insurance (UK) 44,573 219,072
-------------------------------------------------------------------------
Schw Ruckversicher (Switzerland) * 185 142,505
-------------------------------------------------------------------------
Sierra Health Svcs. Inc. * 2,195 53,778
-------------------------------------------------------------------------
Societe Generale (France) 1,455 170,054
-------------------------------------------------------------------------
Travelers Inc. 16,633 727,694
-------------------------------------------------------------------------
Trenwick Group Inc. 2,100 89,775
-------------------------------------------------------------------------
United Amern Healthcare Corp. * 2,250 39,375
-------------------------------------------------------------------------
United Overseas Bank (Singapore) 40,274 380,406
-------------------------------------------------------------------------
Wellcare Mgmt. Inc. * 3,025 74,491
-------------------------------------------------------------------------
Wells Fargo & Company 2,021 364,285
-------------------------------------------------------------------------
15,189,935
Broadcasting:-0.8%
-------------------------------------------------------------------------
Capital Cities ABC Inc. 7,200 775,920
-------------------------------------------------------------------------
Clear Channel Communications * 2,325 149,672
-------------------------------------------------------------------------
Evergreen Media * 2,300 60,088
-------------------------------------------------------------------------
Heartland Wireless Communications Inc. * 2,700 63,450
-------------------------------------------------------------------------
Infinity Broadcasting Corp. * 3,575 119,316
-------------------------------------------------------------------------
LIN Television Corp. * 2,150 72,294
-------------------------------------------------------------------------
Pearson (UK) 13,000 123,032
-------------------------------------------------------------------------
Renaissance Communication Corporation * 1,400 47,425
-------------------------------------------------------------------------
Saga Communications - Class A * 2,800 58,100
-------------------------------------------------------------------------
SFX Broadcasting Inc. * 3,150 83,475
-------------------------------------------------------------------------
Sinclair Broadcasting Group Inc. * 1,700 47,069
-------------------------------------------------------------------------
Young Broadcasting Inc. * 3,925 107,447
-------------------------------------------------------------------------
1,707,288
Building and Construction:-0.3%
-------------------------------------------------------------------------
Armstrong World Industries Inc. 3,781 189,523
-------------------------------------------------------------------------
CRH (Ireland) 60,000 401,637
-------------------------------------------------------------------------
591,160
Chemicals:-2.1%
-------------------------------------------------------------------------
Akzo NV (Netherlands) 2,800 334,663
-------------------------------------------------------------------------
Brady (WH) Co. 1,310 88,753
-------------------------------------------------------------------------
Ciba Geigy AG (Switzerland) 190 139,262
-------------------------------------------------------------------------
Corning Inc. 21,430 701,833
-------------------------------------------------------------------------
Du Pont E I De Nemours & Co. 18,800 1,292,500
-------------------------------------------------------------------------
Eastman Chemical Company 10,200 606,900
-------------------------------------------------------------------------
Grace WR & Co. 9,748 598,284
-------------------------------------------------------------------------
Sekisui Chemical (Japan) 21,000 247,773
-------------------------------------------------------------------------
Union Carbide Corp. 16,550 552,356
-------------------------------------------------------------------------
4,562,324
Construction:-0.3%
-------------------------------------------------------------------------
Fluor Corporation 9,400 488,800
-------------------------------------------------------------------------
IHC Caland NV (Netherlands) 8,500 241,368
-------------------------------------------------------------------------
730,168
Consumer Products and Services:-5.0%
-------------------------------------------------------------------------
American Brands, Inc. 12,250 486,938
-------------------------------------------------------------------------
Benson Eyecare Corp. * 11,750 118,969
-------------------------------------------------------------------------
Black and Decker Corporation 24,200 747,175
-------------------------------------------------------------------------
B.A.T. Industries (UK) 29,058 222,776
-------------------------------------------------------------------------
Cannondale Corp. * 2,825 39,197
-------------------------------------------------------------------------
Eastman Kodak Co. 35,550 2,155,219
-------------------------------------------------------------------------
Genting Berhad (Singapore) 32,500 320,930
-------------------------------------------------------------------------
Home Depot Inc. 1 41
-------------------------------------------------------------------------
Johnson & Johnson 13,900 939,988
-------------------------------------------------------------------------
KAO Corp. (Japan) 10,000 120,347
-------------------------------------------------------------------------
Loewen Group Inc. 5,450 193,475
-------------------------------------------------------------------------
Magna International Inc. 22,300 983,988
-------------------------------------------------------------------------
Magna International Inc. Class A 4,100 182,090
-------------------------------------------------------------------------
Philip Morris Co. Inc. 30,500 2,268,438
-------------------------------------------------------------------------
Polaroid Corporation 8,850 360,638
-------------------------------------------------------------------------
Premark Intl Inc. 9,800 508,375
-------------------------------------------------------------------------
Procter & Gamble Co. 10,000 718,750
-------------------------------------------------------------------------
Siebe (UK) 34,333 343,494
-------------------------------------------------------------------------
Softkey International Inc. * 2,199 69,818
-------------------------------------------------------------------------
Sola Intl Inc. * 5,775 143,653
-------------------------------------------------------------------------
Stewart Enterprises Inc. 4,300 144,588
-------------------------------------------------------------------------
Tommy Hilfiger Corp * 4,900 137,200
-------------------------------------------------------------------------
11,206,087
Drug and Hospital Supplies:-3.7%
-------------------------------------------------------------------------
American Home Products Corp. 6,700 518,413
-------------------------------------------------------------------------
Amgen Inc. * 6,700 538,513
-------------------------------------------------------------------------
Astra AB (Sweden) 10,900 336,545
-------------------------------------------------------------------------
Avecor Cardiovascular Inc. * 5,350 71,891
-------------------------------------------------------------------------
Baxter International Inc. 48,750 1,773,253
-------------------------------------------------------------------------
Bristol Myers Squibb Co. 10,900 742,563
-------------------------------------------------------------------------
Dura Pharmaceuticals Inc. * 6,850 128,438
-------------------------------------------------------------------------
I Stat Corp. * 2,625 95,813
-------------------------------------------------------------------------
Idexx Labs Inc. * 4,100 107,369
-------------------------------------------------------------------------
Lilly (Eli) & Company 5,100 400,350
-------------------------------------------------------------------------
Lincare Holdings Inc. * 4,425 117,816
-------------------------------------------------------------------------
Pfizer Inc. 7,100 655,863
-------------------------------------------------------------------------
Research Inds Corp * 1,700 38,781
-------------------------------------------------------------------------
Santen Pharmaceutical Co. 6,000 159,991
-------------------------------------------------------------------------
Smithkline Beecham PLC 16,500 746,625
-------------------------------------------------------------------------
Upjohn Co. 10,100 382,538
-------------------------------------------------------------------------
Warner Lambert Co. 12,900 1,114,238
-------------------------------------------------------------------------
Yamanouchi Pharm (Japan) 14,000 315,498
-------------------------------------------------------------------------
8,244,498
Electrical and Electronics:-4.6%
-------------------------------------------------------------------------
Actel Corp. * 4,100 53,300
-------------------------------------------------------------------------
Applied Materials Inc. * 6,100 527,650
-------------------------------------------------------------------------
Baldor Electric Co. 4,580 131,103
-------------------------------------------------------------------------
BBC Brown Boveri (Switzerland) 260 269,145
-------------------------------------------------------------------------
Cambridge Technology Partners * 3,350 111,806
-------------------------------------------------------------------------
Cherry Corp. 5,200 70,338
-------------------------------------------------------------------------
Coherent Communications Sys Corp. * 1,700 29,113
-------------------------------------------------------------------------
CP Clare Corp. * 3,275 64,681
-------------------------------------------------------------------------
Emerson Electric Co. 8,100 579,150
-------------------------------------------------------------------------
Franklin Electric Publishers Inc. * 2,100 53,813
-------------------------------------------------------------------------
Fusion Systems Corp. * 2,150 72,831
-------------------------------------------------------------------------
General Electric Co. 12,700 715,963
-------------------------------------------------------------------------
16
<PAGE>
Number Market
of Shares Value
--------- -----------
General Instrument Corp. * 13,300 $ 510,388
------------------------------------------------------------------
Getronics NV (Netherlands) 7,919 387,901
------------------------------------------------------------------
Harman International 2,275 92,138
------------------------------------------------------------------
Hidroel Cantabrico (Spain) 6,600 201,610
------------------------------------------------------------------
Hirose Electric (Japan) 2,000 123,886
------------------------------------------------------------------
Iberdrola SA (Spain) * 38,300 288,376
------------------------------------------------------------------
Intel Corp. 12,000 759,750
------------------------------------------------------------------
ITI Technologies Inc. * 3,125 74,609
------------------------------------------------------------------
Keane Inc. * 4,275 106,341
------------------------------------------------------------------
Kyocera Corporation (Japan) 2,000 164,710
------------------------------------------------------------------
Lattice Semiconductor Corp. * 2,450 84,372
------------------------------------------------------------------
LSI Logic Corp. * 10,600 414,725
------------------------------------------------------------------
Mabuchi Motor Co. (Japan) 2,500 172,261
------------------------------------------------------------------
Maxim Integrated Products Inc. * 3,425 174,675
------------------------------------------------------------------
Microcom Inc. * 3,625 54,768
------------------------------------------------------------------
Motorola Inc. 11,800 792,075
------------------------------------------------------------------
Murata Manufacturing Company (Japan) 7,000 265,117
------------------------------------------------------------------
Oak Ind.s Inc. * 3,450 88,838
------------------------------------------------------------------
Rohm Company (Japan) 3,000 155,035
------------------------------------------------------------------
S3 Inc. * 2,325 83,555
------------------------------------------------------------------
Sanmina Corp. * 3,625 139,109
------------------------------------------------------------------
SGS Thomson Microelectronics * 10,500 426,563
------------------------------------------------------------------
Silicon Graphics Inc. * 13,900 554,263
------------------------------------------------------------------
Silicon Vy Group Inc. * 2,725 98,952
------------------------------------------------------------------
Tandy Company 12,600 653,625
------------------------------------------------------------------
Texas Instruments Inc. 4,700 629,213
------------------------------------------------------------------
Zilog Inc. 3,090 154,114
------------------------------------------------------------------
10,329,862
Entertainment:-0.2%
------------------------------------------------------------------
Burgo (Cartiere) (Italy) * 6,520 574
------------------------------------------------------------------
Burgo(Cartiere) Spa (Italy) * 25,820 170,424
------------------------------------------------------------------
Sierra On-Line Inc. 5,950 149,494
------------------------------------------------------------------
Speedway Motorsports Inc. * 2,800 60,550
------------------------------------------------------------------
381,042
Financial Services:-1.7%
------------------------------------------------------------------
American Express Company 15,500 544,438
------------------------------------------------------------------
Beneficial Corp. 21,550 948,200
------------------------------------------------------------------
Concord Efs Inc. * 4,762 126,193
------------------------------------------------------------------
Dean Witter Discover & Co. 13,501 634,547
------------------------------------------------------------------
Dun & Bradstreet Corporation 16,300 855,750
------------------------------------------------------------------
First USA Inc. 11,500 510,313
------------------------------------------------------------------
SCHW Bankgesellsch (Switzerland) 260 269,370
------------------------------------------------------------------
3,888,811
Food and Beverage:-1.6%
------------------------------------------------------------------
Coca Cola Co. 9,800 624,750
------------------------------------------------------------------
Heinz H.J. Company 7,800 346,125
------------------------------------------------------------------
Kellogg Co. 7,300 521,038
------------------------------------------------------------------
Nestle SA (Switzerland) 183 190,549
------------------------------------------------------------------
Pepsico Inc. 20,800 949,000
------------------------------------------------------------------
Sara Lee Corp. 20,600 587,100
------------------------------------------------------------------
Tate & Lyle (UK) 40,678 274,983
------------------------------------------------------------------
3,493,545
Forest Products:-0.4%
------------------------------------------------------------------
Repola (Finland) 16,765 353,278
------------------------------------------------------------------
Weyerhaeuser Company 12,900 607,913
------------------------------------------------------------------
961,191
Health and Personal Care:-0.4%
------------------------------------------------------------------
Authentic Fitness Corp. * 5,365 89,864
------------------------------------------------------------------
Columbia/HCA Healthcare Corporation 10,400 449,800
------------------------------------------------------------------
ICU Medical Inc. * 300 4,219
------------------------------------------------------------------
Instent Inc. * 2,650 38,425
------------------------------------------------------------------
Schering AG (Germany) 3,550 247,979
------------------------------------------------------------------
Spine Tech Inc. * 1,200 13,100
------------------------------------------------------------------
843,387
Hospital and Health Care:-0.4%
------------------------------------------------------------------
Advantage Health Corporation * 5,230 136,634
------------------------------------------------------------------
American Homepatient Inc. * 2,600 76,700
------------------------------------------------------------------
Apps Dental Inc. * 3,025 62,391
------------------------------------------------------------------
Genesis Health Ventures Inc. * 3,700 109,613
------------------------------------------------------------------
Health Management Assoc. * 3,782 110,624
------------------------------------------------------------------
Health Management * 1,100 12,031
------------------------------------------------------------------
Healthcare Services Group Inc. * 5,700 59,850
------------------------------------------------------------------
Living Centers of America Inc. * 3,475 94,259
------------------------------------------------------------------
Ren Corp USA * 4,130 66,338
------------------------------------------------------------------
Vencor Inc. * 2,525 79,538
------------------------------------------------------------------
807,978
Hotels:-0.3%
------------------------------------------------------------------
Doubletree Corp. * 2,700 58,725
------------------------------------------------------------------
Marriott International Inc. 15,800 566,825
------------------------------------------------------------------
625,550
Household Appliances:-0.1%
------------------------------------------------------------------
Maytag Corp. 20,017 320,272
------------------------------------------------------------------
Industrial:-1.3%
------------------------------------------------------------------
Blyth Industries Inc. * 2,500 106,563
------------------------------------------------------------------
ITT Corp. 5,250 616,875
------------------------------------------------------------------
Johnson Controls Inc. 8,750 494,375
------------------------------------------------------------------
Sundstrand Corp. 6,450 385,388
------------------------------------------------------------------
TRW Inc. 13,660 1,098,679
------------------------------------------------------------------
Zebra Technologies Corp. * 2,063 111,144
------------------------------------------------------------------
2,813,024
Machinery and Engineering:-1.0%
------------------------------------------------------------------
Caterpillar Inc. 11,200 719,600
------------------------------------------------------------------
Cognex Corporation * 5,025 201,628
------------------------------------------------------------------
Credence Systems Corp. * 5,025 150,750
------------------------------------------------------------------
Deere & Company 8,000 685,000
------------------------------------------------------------------
Molins (UK) 15,000 158,184
------------------------------------------------------------------
Rieter Hldgs (Switzerland) * 3,000 158,055
------------------------------------------------------------------
United Engineering (Malaysia) 26,000 165,299
------------------------------------------------------------------
2,238,516
Merchandising:-0.0%
------------------------------------------------------------------
Catalina Marketing Corp. * 900 48,236
------------------------------------------------------------------
Metals and Mining:-0.3%
------------------------------------------------------------------
Freeport McMoran Copper & Gold 24,100 497,063
------------------------------------------------------------------
Tostem Corp. (Japan) 3,000 92,384
------------------------------------------------------------------
589,447
Miscellaneous:-3.8%
------------------------------------------------------------------
Anglian Water (UK) 12,800 102,001
------------------------------------------------------------------
Argentaria (Spain) 3,700 136,698
------------------------------------------------------------------
BCO Tottae Acores-Registered (Portugal) 5,720 121,203
------------------------------------------------------------------
Best Denki Company (Japan) 8,000 118,931
------------------------------------------------------------------
Ciadea S.A. (Argentina) * 1,200 5,821
------------------------------------------------------------------
Community Health Sys. Inc. * 3,000 101,625
------------------------------------------------------------------
Computer Sciences Corporation * 8,900 506,188
------------------------------------------------------------------
CSK Corporation (Japan) 4,000 92,502
------------------------------------------------------------------
Cuc International Inc. * 5,700 239,400
------------------------------------------------------------------
Cycle & Carriage 17,000 152,057
------------------------------------------------------------------
Danieli & Company (Italy) * 27,500 145,210
------------------------------------------------------------------
Edaran Otomobil (Malaysia) 24,000 234,290
------------------------------------------------------------------
Essilor International (France) 2,200 294,766
------------------------------------------------------------------
Exar Corporation * 5,500 160,875
------------------------------------------------------------------
Fischer AG (Switzerland) 200 269,214
------------------------------------------------------------------
Fujitsu (Japan) 28,000 279,158
------------------------------------------------------------------
Futaba Corporation (Japan) 4,000 181,228
------------------------------------------------------------------
Greencore (Ireland) 36,000 272,209
------------------------------------------------------------------
Hutchison Whampoa LTD (Hong Kong) 37,000 178,836
------------------------------------------------------------------
Igen Inc. * 3,700 22,663
------------------------------------------------------------------
Inference Corp. 100 1,100
------------------------------------------------------------------
Jardine Matheson * 29,000 213,273
------------------------------------------------------------------
Komori Corporation (Japan) 6,000 122,471
------------------------------------------------------------------
Kon Ptt Nederland (Netherlands) 5,200 186,925
------------------------------------------------------------------
Lafarge Coppee SA (France) 3,700 287,684
------------------------------------------------------------------
Landstar Systems Inc. * 1,875 48,281
------------------------------------------------------------------
Leader Univ. Holdings (Singapore) 31,333 116,588
------------------------------------------------------------------
Maeda Corporation 18,000 199,634
------------------------------------------------------------------
Marui Company 10,000 159,283
------------------------------------------------------------------
Mayr Melnhof * 7,000 100,625
------------------------------------------------------------------
Medisense Inc. * 3,460 67,686
------------------------------------------------------------------
Mercury Interactive Coporation * 3,365 67,721
------------------------------------------------------------------
17
<PAGE>
<TABLE>
<CAPTION>
Number Market
of Shares Value
--------- -----
<S> <C> <C>
Nichicon Corp. (Japan) 17,000 $204,590
-----------------------------------------------------------------------------
Nippondenso Company (Japan) 13,000 236,210
-----------------------------------------------------------------------------
Omron Corporation 16,000 305,823
-----------------------------------------------------------------------------
SGS Holdings (Switzerland) 105 182,371
-----------------------------------------------------------------------------
Soc Elf Aquitaine (France) 3,250 240,168
-----------------------------------------------------------------------------
Solvay (Belgian) 700 383,885
-----------------------------------------------------------------------------
Sommer Allibert (France) 500 183,971
-----------------------------------------------------------------------------
Sovac (France) 2,190 194,113
-----------------------------------------------------------------------------
Spyglass Inc. 100 2,875
-----------------------------------------------------------------------------
Swire Pacific (Hong Kong) 20,000 152,498
-----------------------------------------------------------------------------
Takuma Company (Japan) 6,000 55,784
-----------------------------------------------------------------------------
Tele Danmark 9,300 260,400
-----------------------------------------------------------------------------
Toda Corporation (Japan) 19,000 166,787
-----------------------------------------------------------------------------
Transaction Network Services Inc. * 3,600 58,500
-----------------------------------------------------------------------------
Ugine SA (France) 2,875 202,085
-----------------------------------------------------------------------------
Ultratech Stepper Inc. 1,650 57,750
-----------------------------------------------------------------------------
VA Technologie Ag. (Austria) 2,500 312,885
-----------------------------------------------------------------------------
8,386,841
MOTOR VEHICLES AND EQUIPMENT:-1.3%
-----------------------------------------------------------------------------
Bridgestone Corp. (Japan) 14,000 206,477
-----------------------------------------------------------------------------
Chrysler Corp. * 3,700 177,138
-----------------------------------------------------------------------------
Custom Chrome Inc. * 2,950 58,263
-----------------------------------------------------------------------------
Dana Corp. 9,100 260,488
-----------------------------------------------------------------------------
Eaton Corp. 9,250 537,656
-----------------------------------------------------------------------------
Edelbrock Corp. * 3,450 45,497
-----------------------------------------------------------------------------
General Motors Corp. 10,300 482,813
-----------------------------------------------------------------------------
General Motors Corp. Series H 22,400 884,800
-----------------------------------------------------------------------------
Mitsubishi Motors (Japan) 27,000 222,677
-----------------------------------------------------------------------------
Peugeot SA (France) 1,000 138,726
-----------------------------------------------------------------------------
3,014,535
OFFICE AND BUSINESS EQUIPMENT AND SERVICES:-3.8%
-----------------------------------------------------------------------------
ABR Information Services Inc. * 300 8,625
-----------------------------------------------------------------------------
Accustaff Ind. * 2,150 47,031
-----------------------------------------------------------------------------
Alternative Res. Corp. * 2,800 72,800
-----------------------------------------------------------------------------
America Online Inc. * 3,865 169,094
-----------------------------------------------------------------------------
American Business Information * 2,650 72,544
-----------------------------------------------------------------------------
Analyst International Corp. 2,000 51,750
-----------------------------------------------------------------------------
Arcsys Inc. * 100 3,438
-----------------------------------------------------------------------------
Automatic Data Processing, Inc. 7,300 458,988
-----------------------------------------------------------------------------
Business Objects SA * 1,800 58,500
-----------------------------------------------------------------------------
Cabletron Systems Inc. 7,000 372,750
-----------------------------------------------------------------------------
Cisco Systems Inc. * 7,600 384,275
-----------------------------------------------------------------------------
Computer Associates International Inc. 10,300 697,825
-----------------------------------------------------------------------------
Computer Horizons Corp. * 5,938 92,773
-----------------------------------------------------------------------------
Datalogix Intl Inc. * 2,725 65,741
-----------------------------------------------------------------------------
Encad Inc. * 2,040 55,463
-----------------------------------------------------------------------------
Fiserv Inc. * 3,975 111,052
-----------------------------------------------------------------------------
Hewlett-Packard Co. 8,700 648,150
-----------------------------------------------------------------------------
Honeywell Inc. 10,050 433,406
-----------------------------------------------------------------------------
Inso Corp * 1,000 59,188
-----------------------------------------------------------------------------
International Business Machines 14,150 1,358,400
-----------------------------------------------------------------------------
Mcafee Associates Inc. * 2,550 77,616
-----------------------------------------------------------------------------
Mysoftware Co. * 400 4,950
-----------------------------------------------------------------------------
National Data Corp. 2,600 60,125
-----------------------------------------------------------------------------
On Assignment Inc. * 3,150 58,669
-----------------------------------------------------------------------------
Oracle Systems Corp. * 12,550 483,959
-----------------------------------------------------------------------------
Peak Technologies Group Inc.* 3,100 84,088
-----------------------------------------------------------------------------
Platinum Software Corp. * 6,600 95,288
-----------------------------------------------------------------------------
Robert Half International Inc. * 4,075 104,422
-----------------------------------------------------------------------------
Security Dynamics Tech. Inc.* 1,475 65,822
-----------------------------------------------------------------------------
Security Services (UK) 21,100 298,696
-----------------------------------------------------------------------------
Shiva Corp. * 1,400 60,200
-----------------------------------------------------------------------------
SOS Staffing Svcs Inc. * 1,400 9,625
-----------------------------------------------------------------------------
State of the Art Inc. * 5,200 50,375
-----------------------------------------------------------------------------
US Delivery Sys Inc. * 3,275 85,969
-----------------------------------------------------------------------------
Xerox Corp. 14,000 1,641,500
-----------------------------------------------------------------------------
8,403,097
PAPER:-0.8%
-----------------------------------------------------------------------------
Kimberly Clark Corp. 10,050 601,744
-----------------------------------------------------------------------------
Scott Paper Co. 15,600 772,200
-----------------------------------------------------------------------------
Svenska Cellulosa (Sweden) 17,000 315,633
-----------------------------------------------------------------------------
1,689,577
PETROLEUM AND PETROLEUM RELATED:-4.1%
-----------------------------------------------------------------------------
Amoco Corp. 7,000 $466,375
-----------------------------------------------------------------------------
Atlantic Richfield Co. 4,100 449,975
-----------------------------------------------------------------------------
British Petroleum PLC 10,300 881,938
-----------------------------------------------------------------------------
Burmah Castrol PLC (UK) 20,641 298,928
-----------------------------------------------------------------------------
Enron Corp. 25,700 902,713
-----------------------------------------------------------------------------
Exxon Corp. 6,800 480,250
-----------------------------------------------------------------------------
Mobil Corp. 9,800 940,800
-----------------------------------------------------------------------------
Occidental Petroleum Corp. 22,871 523,174
-----------------------------------------------------------------------------
Phillips Petroleum Co. 12,800 427,200
-----------------------------------------------------------------------------
Repsol SA (Spain) 12,675 398,693
-----------------------------------------------------------------------------
Sonat Inc. 6,750 205,875
-----------------------------------------------------------------------------
Tenneco Inc. 11,550 531,300
-----------------------------------------------------------------------------
Texaco Inc. 5,250 344,531
-----------------------------------------------------------------------------
Total S A 36,052 1,090,549
-----------------------------------------------------------------------------
Ultramar Corporation 12,900 325,725
-----------------------------------------------------------------------------
Witco Corporation 24,800 799,800
-----------------------------------------------------------------------------
9,067,826
PHOTOGRAPHY:-0.1%
-----------------------------------------------------------------------------
Toray Industries Inc. (Japan) 36,000 223,845
-----------------------------------------------------------------------------
PRINTING AND PUBLISHING:-0.5%
-----------------------------------------------------------------------------
Dai Nippon Printing (Japan) 17,000 270,780
-----------------------------------------------------------------------------
McGraw Hill Inc. 6,500 493,188
-----------------------------------------------------------------------------
Scientific Games Hldgs Corp. * 3,520 96,360
-----------------------------------------------------------------------------
Singapore Press HD (Singapore) 9,600 143,571
-----------------------------------------------------------------------------
Wolters Kluwer NV (Netherlands) 2,520 222,319
-----------------------------------------------------------------------------
1,226,218
PUBLIC UTILITIES:-1.6%
-----------------------------------------------------------------------------
Chubu Electric Power (Japan) 1,000 27,373
-----------------------------------------------------------------------------
Cinergy Corp. 18,903 496,204
-----------------------------------------------------------------------------
East Midlands Electricity 12,600 128,565
-----------------------------------------------------------------------------
Gaz Et Eaux (France) 643 250,504
-----------------------------------------------------------------------------
General Electric (UK) 25,714 125,564
-----------------------------------------------------------------------------
Hong Kong Electric 50,000 169,945
-----------------------------------------------------------------------------
Kurita Water Industries (Japan) 5,000 128,606
-----------------------------------------------------------------------------
Matsushita Electric Industries (Japan) 17,000 264,763
-----------------------------------------------------------------------------
MCN Corp. 20,200 398,950
-----------------------------------------------------------------------------
North West Water (UK) 21,587 190,564
-----------------------------------------------------------------------------
Northeast Utilities 20,100 452,250
-----------------------------------------------------------------------------
Texas Utilities Co. 7,242 248,944
-----------------------------------------------------------------------------
Tokyo Electric Power (Japan) 12,300 377,323
-----------------------------------------------------------------------------
Veba AG (Germany) 695 273,145
-----------------------------------------------------------------------------
3,532,700
RAILROADS:-1.0%
-----------------------------------------------------------------------------
Burlington Northern Inc. 9,800 621,075
-----------------------------------------------------------------------------
Conrail Inc. 8,550 475,594
-----------------------------------------------------------------------------
Norfolk Southern Corp. 7,100 478,363
-----------------------------------------------------------------------------
Union Pac Corp. 10,400 575,900
-----------------------------------------------------------------------------
2,150,932
REAL ESTATE:-0.2%
-----------------------------------------------------------------------------
Cheung Kong Holdings (Hong Kong) * 27,000 133,643
-----------------------------------------------------------------------------
Hong Kong Land Hld * 59,000 107,380
-----------------------------------------------------------------------------
Hong Leong Industries (Singapore) 22,000 137,162
-----------------------------------------------------------------------------
378,185
RESTRAURANT:-0.1%
-----------------------------------------------------------------------------
Apple South Inc. 4,200 81,375
-----------------------------------------------------------------------------
Davco Restaurants Inc. 300 3,975
-----------------------------------------------------------------------------
Landry's Seafood Restaurant Inc. * 6,100 122,763
-----------------------------------------------------------------------------
O'Charleys Inc. * 2,225 28,647
-----------------------------------------------------------------------------
Studio Plus America Inc. * 4,100 67,675
-----------------------------------------------------------------------------
304,435
RETAIL:-2.8%
-----------------------------------------------------------------------------
Argyll Group (UK) 42,033 224,305
-----------------------------------------------------------------------------
Corporate Express Inc. * 2,250 48,234
-----------------------------------------------------------------------------
Department 56 Inc. * 3,640 139,230
-----------------------------------------------------------------------------
Fastenal Co. 4,695 128,819
-----------------------------------------------------------------------------
Federated Department Stores Inc. * 27,100 697,825
-----------------------------------------------------------------------------
Gymboree Corp. * 3,325 96,841
-----------------------------------------------------------------------------
Hollywood Entmt. Corp. * 3,990 180,049
-----------------------------------------------------------------------------
</TABLE>
18
<PAGE>
Number Market
of Shares Value
--------- --------
ITO Yokado Company
(Japan) 5,000 $263,701
-----------------------------------------------------
K Mart Corp. 50,250 734,906
-----------------------------------------------------
Kenneth Cole
Productions Inc. * 4,475 149,353
-----------------------------------------------------
Lowe's Companies 13,100 391,363
-----------------------------------------------------
Michelin CGDE (France) 5,920 262,241
-----------------------------------------------------
Office Depot Inc. * 22,150 622,969
-----------------------------------------------------
Penney (J.C.) Company,
Inc. 9,500 456,000
-----------------------------------------------------
Revco DS Inc. 5,525 132,600
-----------------------------------------------------
Rite Aid Corp. 25,400 650,875
-----------------------------------------------------
Sears (UK) 160,000 253,221
-----------------------------------------------------
Sears, Roebuck and Co. 5,600 335,300
-----------------------------------------------------
Sunglass Hut
International Inc. * 2,000 69,750
-----------------------------------------------------
Walgreen Co. 9,400 471,175
-----------------------------------------------------
6,308,757
Savings and Loan:-0.2%
-----------------------------------------------------
First Chicago Corp. 8,200 490,975
-----------------------------------------------------
Securities Dealers:-0.1%
-----------------------------------------------------
Daiwa Securities
(Japan) 20,000 210,961
-----------------------------------------------------
Shoes:-0.3%
-----------------------------------------------------
Melville Corp. 17,300 592,525
-----------------------------------------------------
Wolverine World Wide
Inc. 6,960 144,420
-----------------------------------------------------
736,945
Soaps, Cleaner and Cosmetics:-0.6%
-----------------------------------------------------
Avon Products, Inc. 19,300 1,293,100
-----------------------------------------------------
Steel:-0.4%
-----------------------------------------------------
Bekaert SA (Belgium) * 263 208,026
-----------------------------------------------------
Nisshin Steel Company 35,000 128,429
-----------------------------------------------------
Nucor Corporation 12,100 647,350
-----------------------------------------------------
983,805
Telecommunications:-3.5%
-----------------------------------------------------
3Com Corporation * 5,400 361,800
-----------------------------------------------------
American Telephone &
Telegraph Co. 24,550 1,304,219
-----------------------------------------------------
Cellular Comms
Puerto Rico * 675 20,672
-----------------------------------------------------
Cellular Communications
Intl * 1 38
-----------------------------------------------------
Centennial Cellular
Corp. * 3,800 63,413
-----------------------------------------------------
Century Communications
Corp. * 5,931 56,345
-----------------------------------------------------
Comnet Cellular Inc. * 2,365 66,368
-----------------------------------------------------
DSC Communications Corp. * 13,800 642,563
-----------------------------------------------------
Ericsson L. M. Tel. Co. 26,400 529,650
-----------------------------------------------------
EZ Communications Inc. * 5,200 94,900
-----------------------------------------------------
Frontier Corp. 22,350 536,400
-----------------------------------------------------
Highwaymaster Comm. Inc. * 700 10,763
-----------------------------------------------------
MCI Communications Corp. 26,400 579,150
-----------------------------------------------------
Nynex Corp. 23,117 930,459
-----------------------------------------------------
Sprint Corp. 27,850 936,456
-----------------------------------------------------
Tele Communications Inc. * 25,900 607,031
-----------------------------------------------------
U S West, Inc. 18,150 755,494
-----------------------------------------------------
Vodafone Group (UK) 75,860 281,745
-----------------------------------------------------
7,777,466
Textiles-Apparel Manufacturing:-0.1%
-----------------------------------------------------
Nautica Enterprises Inc. * 2,870 103,320
-----------------------------------------------------
St. John Knits Inc. 4,900 219,888
-----------------------------------------------------
323,208
Transportation:0.1%
-----------------------------------------------------
Expeditores International
of Washington Inc. 4,325 97,853
-----------------------------------------------------
Fritz Companies Inc. * 1,690 99,288
-----------------------------------------------------
Jurong Shipyard
(Singapore) 14,000 100,179
-----------------------------------------------------
297,320
Waste Management:-0.5%
-----------------------------------------------------
Browning Ferris
Industries Inc. 16,400 592,450
-----------------------------------------------------
WMX Technologies Inc. 17,600 499,400
-----------------------------------------------------
1,091,850
Total Common Stocks:-59.2%
(Cost - $111,539,135) 131,979,361
-----------------------------------------------------
Number Market
of Shares Value
--------- --------
Preferred Stocks:
-----------------------------------------------------
Case Equipment Inc. 5,750 $462,875
-----------------------------------------------------
Chrysler Corp. 1,532 203,756
-----------------------------------------------------
Citicorp 4,950 785,813
-----------------------------------------------------
Ford Motor Co. 1,350 131,119
-----------------------------------------------------
Unisys Corporation 3,100 133,300
-----------------------------------------------------
Total Preferred Stocks:-0.8%
(Cost - $1,472,986) 1,716,863
-----------------------------------------------------
Par
Amount
Options Purchased: -------
S & P 500 Index
Put Expiring 7/22/95,
strike price 540 $20,500 66,625
-----------------------------------------------------
Japanese 10 year future
Call Expiring 8/31/95,
strike price 113 123,300,000 113,066
-----------------------------------------------------
Total Options Purchased:-0.1%
(Cost - $148,991) 179,691
-----------------------------------------------------
Maturity
Amount
Repurchase Agreement: --------
Shearson Lehman
repurchase agreement,
dated 6/30/95, 6.22%,
maturing 7/03/95
collateralized by U.S.
Treasury Notes
7.875%, 7/31/96 $22,307,406 22,292,000
-----------------------------------------------------
Total Repurchase Agreement:-10.0%
(Cost-$1,787,000) 22,292,000
-----------------------------------------------------
Total Investments:-101.4%
(Cost $195,579,002) 226,047,539
-----------------------------------------------------
Other Assets Under Total
Liabilities-(1.4%) (2,986,392)
-----------------------------------------------------
Net Assets: 100%
(equivalent to 12.250
per share based on
18,208,356 shares
issued and outstanding) $223,061,147
=====================================================
Lincoln National Growth and Income
Fund, Inc.
Statement of Net Assets - Unaudited
June 30, 1995
Investments Number Market
of Shares Value
Common Stocks: --------- -----------
Aerospace:-1.4%
-----------------------------------------------------
McDonnell Douglas
Corporation 270,900 $20,791,575
-----------------------------------------------------
Air Transportation:-0.6%
-----------------------------------------------------
AMR Corp. * 128,200 9,566,925
-----------------------------------------------------
Banking and Insurance:-7.3%
-----------------------------------------------------
Bank of Boston
Corporation 521,500 19,556,250
-----------------------------------------------------
Bank of New York, Inc. 491,900 19,860,462
-----------------------------------------------------
Chase Manhattan Corp. 89,600 4,211,200
-----------------------------------------------------
Chemical Banking Corp. 404,300 19,103,175
-----------------------------------------------------
Cigna Corp. 236,800 18,381,600
-----------------------------------------------------
First Interstate Bank 19,300 1,548,825
-----------------------------------------------------
MBNA Corp. 339,500 11,458,125
-----------------------------------------------------
NWNL Cos. Inc. 18,700 715,275
-----------------------------------------------------
Ohio Casualty Corp. 120,800 3,835,400
-----------------------------------------------------
St. Paul Companies Inc. 90,000 4,432,500
-----------------------------------------------------
Transamerica Corp. 104,300 6,075,475
-----------------------------------------------------
109,178,287
19
<PAGE>
Number Market
of Shares Value
--------- ----------
Broadcasting:-1.7%
-----------------------------------------------------
Belo (A.H.) Corporation 36,500 $ 1,117,813
-----------------------------------------------------
Capital Cities ABC Inc. 218,100 23,554,800
-----------------------------------------------------
24,672,613
Building and Construction:0.4%
-----------------------------------------------------
Armstrong World
Industries Inc. 114,900 5,759,363
-----------------------------------------------------
Chemicals:-3.7%
-----------------------------------------------------
Dow Chemical Co. 147,600 10,608,750
-----------------------------------------------------
Du Pont E I De Nemours
& Co. 248,300 17,070,625
-----------------------------------------------------
Eastman Chemical Company 82,900 4,932,550
-----------------------------------------------------
Georgia Gulf Corp. 126,400 4,123,800
-----------------------------------------------------
Olin Corp. 171,400 8,827,100
-----------------------------------------------------
Union Carbide Corp. 273,100 9,114,712
-----------------------------------------------------
54,677,537
Consumer Products and Services:-4.5%
-----------------------------------------------------
American Brands, Inc. 121,500 4,829,625
-----------------------------------------------------
Omnicom Group, Inc. 116,400 7,056,750
-----------------------------------------------------
Philip Morris Co. Inc. 547,000 40,683,125
-----------------------------------------------------
Procter & Gamble Co. 203,200 14,605,000
-----------------------------------------------------
67,174,500
Drug and Hospital Supplies:-7.6%
-----------------------------------------------------
Baxter International Inc. 581,900 21,166,613
-----------------------------------------------------
Bristol Myers Squibb Co. 429,300 29,246,063
-----------------------------------------------------
Lilly (Eli) & Company 225,800 17,725,300
-----------------------------------------------------
Schering-Plough
Corporation 541,600 23,898,100
-----------------------------------------------------
Upjohn Co. 549,900 20,827,462
-----------------------------------------------------
112,863,538
Electrical and Electronics:-5.3%
-----------------------------------------------------
Avnet Inc. 123,200 5,959,800
-----------------------------------------------------
General Electric Co. 628,700 35,442,963
-----------------------------------------------------
General Instrument
Corp. * 192,200 7,375,675
-----------------------------------------------------
Tektronix Inc. 209,600 10,322,800
-----------------------------------------------------
Teradyne Inc. * 307,400 20,096,275
-----------------------------------------------------
79,197,513
Entertainment:-1.6%
-----------------------------------------------------
Mattel Inc. 199,231 5,180,006
-----------------------------------------------------
Mirage Resorts Inc. * 609,900 18,678,187
-----------------------------------------------------
23,858,193
Financial Services:-3.0%
-----------------------------------------------------
American General Corp. 584,000 19,710,000
-----------------------------------------------------
Dean Witter Discover
& Co. 261,800 12,304,600
-----------------------------------------------------
Household International
Inc. 270,700 13,399,650
-----------------------------------------------------
45,414,250
Food and Beverage:-6.6%
-----------------------------------------------------
Archer Daniels Midland
Co. 149,600 2,786,300
-----------------------------------------------------
Campbell Soup Co. 238,800 11,701,200
-----------------------------------------------------
Coca Cola Co. 329,700 21,018,375
-----------------------------------------------------
ConAgra, Inc. 295,400 10,302,075
-----------------------------------------------------
Coors (Adolph) C.B. 263,900 4,271,749
-----------------------------------------------------
IBP, Inc. 425,600 18,513,600
-----------------------------------------------------
RJR Nabisco Holding Corp. 318,920 8,889,895
-----------------------------------------------------
Safeway Inc. * 456,200 17,050,475
-----------------------------------------------------
Universal Foods
Corporation 142,600 4,616,675
-----------------------------------------------------
99,150,344
Household Appliances:-0.6%
-----------------------------------------------------
Maytag Corp. 547,800 8,764,800
-----------------------------------------------------
Industrial:-0.7%
-----------------------------------------------------
TRW Inc. 126,100 10,072,238
-----------------------------------------------------
Machinery and Engineering:-2.6%
-----------------------------------------------------
Deere & Company 239,400 20,498,625
-----------------------------------------------------
Novellus Systems Inc. * 277,600 18,807,400
-----------------------------------------------------
39,306,025
Metals and Mining:-2.1%
-----------------------------------------------------
Cyprus Amax Minerials
Company 280,000 7,980,000
-----------------------------------------------------
Parker Hannifin Corp. 113,250 4,105,313
-----------------------------------------------------
Phelps Dodge Corp. 331,100 19,534,900
-----------------------------------------------------
31,620,213
Miscellaneous:-0.1%
-----------------------------------------------------
Outboard Marine
Corporation 45,800 898,825
-----------------------------------------------------
Motor Vehicles and Equipment:-3.1%
-----------------------------------------------------
Eaton Corp. 343,700 19,977,563
-----------------------------------------------------
Ford Motor Company 619,000 18,415,250
-----------------------------------------------------
Goodrich BF Company 139,400 7,475,325
-----------------------------------------------------
45,868,138
Office and Business Equipment and Services:-9.3%
-----------------------------------------------------
Advanced Micro Devices,
Inc. 142,500 5,183,438
-----------------------------------------------------
Avery Dennison Corp. 35,800 1,432,000
-----------------------------------------------------
Broderbund Software
Inc. * 150,200 9,556,475
-----------------------------------------------------
Cadence Design Systems
Inc. * 329,500 10,667,563
-----------------------------------------------------
Ceridian Corporation * 90,100 3,322,438
-----------------------------------------------------
Computer Associates
International Inc. 227,000 15,379,250
-----------------------------------------------------
Digital Equipment Corp. * 106,700 4,348,025
-----------------------------------------------------
International Business
Machines 283,500 27,216,000
-----------------------------------------------------
Manpower Inc. 213,100 5,434,050
-----------------------------------------------------
Micron Technology Inc. 402,100 22,065,237
-----------------------------------------------------
Reynolds & Reynolds Co. 209,200 6,171,400
-----------------------------------------------------
Sun Microsystems Inc. * 431,000 20,930,222
-----------------------------------------------------
Tandem Computers Inc.* 502,400 8,101,200
-----------------------------------------------------
139,807,298
Paper:-2.3%
-----------------------------------------------------
Federal Paper Board Co. 451,000 15,954,125
-----------------------------------------------------
Stone Container Corp. * 465,500 9,891,875
-----------------------------------------------------
Union Camp Corp. 151,600 8,773,850
-----------------------------------------------------
34,619,850
Petroleum and Petroleum Related:-8.9%
-----------------------------------------------------
Amoco Corp. 346,200 23,065,575
-----------------------------------------------------
Atlantic Richfield Co. 54,900 6,025,275
-----------------------------------------------------
Exxon Corp. 523,900 37,000,438
-----------------------------------------------------
Halliburton Co. 243,100 8,690,825
-----------------------------------------------------
Lyondell Petrochemical
Company 588,300 15,075,187
-----------------------------------------------------
Mobil Corp. 105,800 10,156,800
-----------------------------------------------------
Royal Dutch Petroleum Co. 114,600 13,966,875
-----------------------------------------------------
Williams Companies, Inc. 537,500 18,745,312
-----------------------------------------------------
132,726,287
Public Utilities:-4.5%
-----------------------------------------------------
Baltimore Gas & Electric
Co. 474,300 11,857,500
-----------------------------------------------------
Consolidated Edison
Company 679,900 20,057,050
-----------------------------------------------------
General Public Utilities
Corp. 406,950 12,106,762
-----------------------------------------------------
Northeast Utilities 388,000 8,730,000
-----------------------------------------------------
Pacific Gas & Electric
Co. 150,000 4,350,000
-----------------------------------------------------
Public Service Enterprise 224,000 6,216,000
-----------------------------------------------------
SCE Corporation 203,700 3,488,362
-----------------------------------------------------
66,805,674
Railroads:-0.9%
-----------------------------------------------------
Conrail Inc. 108,400 6,029,750
-----------------------------------------------------
Illinois Central Corp. 207,800 7,169,100
-----------------------------------------------------
13,198,850
Retail:-4.4%
-----------------------------------------------------
Eckerd Corp.* 114,900 3,676,800
-----------------------------------------------------
Jostens Inc. 56,100 1,192,125
-----------------------------------------------------
Kroger Co.* 658,800 17,705,250
-----------------------------------------------------
Pier 1 Imports Inc. 416,700 3,854,475
-----------------------------------------------------
Sears, Roebuck and Co. 228,200 13,663,475
-----------------------------------------------------
Staples Inc. * 440,200 12,738,067
-----------------------------------------------------
Waban Inc. * 252,500 3,755,937
-----------------------------------------------------
Wal-Mart Stores 331,200 8,859,600
-----------------------------------------------------
65,445,729
20
<PAGE>
<TABLE>
<CAPTION>
Number Market
of Shares Value
---------- --------------
<S> <C> <C>
Savings and Loan:-1.3%
-------------------------------------------------------------------------------
First Chicago Corp. 334,500 $ 20,028,187
-------------------------------------------------------------------------------
Soaps, Cleaner and Cosmetics:-2.4%
-------------------------------------------------------------------------------
Clorox Company 185,800 12,123,450
-------------------------------------------------------------------------------
Colgate-Palmolive Company 264,900 19,370,813
-------------------------------------------------------------------------------
Dial Corp. 193,100 4,779,225
-------------------------------------------------------------------------------
36,273,488
Telecommunications:-8.1%
-------------------------------------------------------------------------------
American Telephone & Telegraph Co. 345,200 18,338,750
-------------------------------------------------------------------------------
Ameritech Corp. 541,600 23,830,400
-------------------------------------------------------------------------------
Bellsouth Corp. 341,800 21,704,300
-------------------------------------------------------------------------------
Comsat Corporation 281,600 5,526,400
-------------------------------------------------------------------------------
GTE Corp. 522,700 17,837,138
-------------------------------------------------------------------------------
Pacific Telesis Group 692,500 18,524,375
-------------------------------------------------------------------------------
SBC Communications Inc. 104,700 4,986,337
-------------------------------------------------------------------------------
Sprint Corp. 323,800 10,887,775
-------------------------------------------------------------------------------
121,635,475
Textiles-Apparel Manufacturing:-0.3%
-------------------------------------------------------------------------------
V F Corporation 90,900 4,885,875
-------------------------------------------------------------------------------
Transportation:-0.3%
-------------------------------------------------------------------------------
PHH Corporation 92,700 4,125,150
-------------------------------------------------------------------------------
Total Common Stocks:-95.6%
(Cost-$1,181,630,368) 1,428,386,740
-------------------------------------------------------------------------------
Par
Money Market Instruments: Amount
----------
American General Corp.
5.87%, 7/24/95 $7,700,000 7,655,308
-------------------------------------------------------------------------------
Donnelley (R.R.) & Sons Co.
5.85%, 7/18/95 5,900,000 5,860,691
-------------------------------------------------------------------------------
General Electric Co.
6.11%, 7/24/95 3,575,000 3,575,000
-------------------------------------------------------------------------------
Idaho Power Company
5.97%, 7/27/95 3,500,000 3,479,105
-------------------------------------------------------------------------------
Merrill Lynch & Company Inc.
5.9%, 7/03/95 2,700,000 2,688,053
5.97%, 7/13/95 5,300,000 5,274,511
5.95%, 7/17/95 4,400,000 4,371,638
-------------------------------------------------------------------------------
Mitsui & Co. (USA) Inc.
5.97%, 7/10/95 5,000,000 4,978,442
-------------------------------------------------------------------------------
Prudential Funding Inc.
5.96%, 7/11/95 6,000,000 5,981,127
-------------------------------------------------------------------------------
Smith Barney
5.94%, 8/02/95 1,400,000 1,390,760
-------------------------------------------------------------------------------
Southwestern Bell Telephone Co.
5.98%, 8/07/95 1,200,000 1,180,465
-------------------------------------------------------------------------------
Sumitomo Corp. of America
6.02%, 7/17/95 1,700,000 1,676,974
6.03%, 7/26/95 1,000,000 995,310
5.98%, 7/31/95 6,500,000 6,463,289
5.95%, 8/09/95 5,000,000 4,959,507
-------------------------------------------------------------------------------
Temple-Inland Inc.
5.98%, 7/26/95 5,000,000 4,965,947
5.95%, 8/02/95 2,000,000 1,984,133
5.95%, 8/22/95 1,900,000 1,880,216
-------------------------------------------------------------------------------
U.S. Treasury Bill *
0.0% 5/02/96 4,500,000 4,229,958
-------------------------------------------------------------------------------
Vermont American Corp.
5.95%, 7/24/95 1,400,000 1,390,513
5.95%, 7/27/95 6,400,000 6,352,400
-------------------------------------------------------------------------------
Total Money Market Instruments:-5.4%
(Cost-$81,333,347) 81,333,347
-------------------------------------------------------------------------------
Total Investments:-101.0%
(Cost-$1,262,963,715) 1,509,720,087
-------------------------------------------------------------------------------
Other Assets Under Liabilities-(1.0%) (15,097,350)
-------------------------------------------------------------------------------
Net Assets--100.0%
(equivalent to $26.276 per share
based on 56,881,977 shares
issued and outstanding) $1,494,622,737
===============================================================================
Lincoln National International
Fund, Inc.
Statement of Net Assets - Unaudited
June 30, 1995
Number Market
Investments of Shares Value
---------- --------------
Common Stocks:
Air Transportation:--1.9%
-------------------------------------------------------------------------------
British Airport Authority (UK) 409,600 $3,215,168
-------------------------------------------------------------------------------
Singapore Airlines (Singapore) 335,000 3,092,308
-------------------------------------------------------------------------------
6,307,476
Banking and Insurance:-11.8%
-------------------------------------------------------------------------------
Asahi Bank (Japan) 225,000 2,402,513
-------------------------------------------------------------------------------
DePfa Bank (Germany)* 7,944 4,036,433
-------------------------------------------------------------------------------
Guoco Group (Hong Kong) 593,000 2,766,587
-------------------------------------------------------------------------------
Hong Leong Credit (Malasia) 439,000 2,214,807
-------------------------------------------------------------------------------
HSBC Holdings PLC (Hong Kong) 246,000 3,155,354
-------------------------------------------------------------------------------
Intl Nederlanden (Netherlands) 71,000 3,926,880
-------------------------------------------------------------------------------
Mitsubishi Bank (Japan) 113,000 2,439,856
-------------------------------------------------------------------------------
Overseas Chinese Banking Corp. (Singapore) 311,500 3,454,919
-------------------------------------------------------------------------------
Peregrine Investment Holdings (Hong Kong) 219,000 304,965
-------------------------------------------------------------------------------
Sanwa Bank (Japan) 132,000 2,491,888
-------------------------------------------------------------------------------
Skandia Foersaekrings (Sweden) 173,800 3,370,302
-------------------------------------------------------------------------------
Standard Chartered Bank (UK) 721,528 3,833,153
-------------------------------------------------------------------------------
Sumitomo Bank (Japan) 100,000 1,734,411
-------------------------------------------------------------------------------
Winterthur Schweiz Registered (Switzerland) 5,280 3,173,044
-------------------------------------------------------------------------------
39,305,112
Broadcasting:-5.8%
-------------------------------------------------------------------------------
Argentinian Investment Co. (Argentina)* 100,200 1,703,400
-------------------------------------------------------------------------------
De La Rue(UK) 113,600 1,694,396
-------------------------------------------------------------------------------
Nippon TV Network (Japan) 12,100 2,726,801
-------------------------------------------------------------------------------
Reed Elsevier International (UK) 258,200 3,626,381
-------------------------------------------------------------------------------
Reuters Holdings (UK) 463,000 3,855,265
-------------------------------------------------------------------------------
Television Broadcast (Hong Kong) 629,000 2,211,068
-------------------------------------------------------------------------------
TF1 (France) 35,200 3,464,638
-------------------------------------------------------------------------------
19,281,949
Building Materials:-0.8%
-------------------------------------------------------------------------------
Matsushita Electric Works (Japan) 247,000 2,663,654
-------------------------------------------------------------------------------
Building and Construction:-1.0%
-------------------------------------------------------------------------------
Renonga BHD (Malaysia)* 1,841,000 3,428,277
-------------------------------------------------------------------------------
Chemicals:-1.4%
-------------------------------------------------------------------------------
Shin Etsu Chemical Company (Japan) 150,000 2,637,013
-------------------------------------------------------------------------------
Tosoh Corp. (Japan)* 516,000 1,942,117
-------------------------------------------------------------------------------
4,579,130
Construction:-1.8%
-------------------------------------------------------------------------------
IHC Caland NV (Netherlands) 118,500 3,364,956
-------------------------------------------------------------------------------
Sekisui House (Japan) 220,000 2,725,503
-------------------------------------------------------------------------------
6,090,459
Consumer Products and Services:-5.1%
-------------------------------------------------------------------------------
Amway Japan Ltd. (Japan) 74,100 2,710,283
-------------------------------------------------------------------------------
BIC (France) 25,375 4,201,916
-------------------------------------------------------------------------------
Canon Sales Co. Inc. (Japan) 111,000 3,077,695
-------------------------------------------------------------------------------
Carrefour (France) 7,100 3,636,860
-------------------------------------------------------------------------------
Centros Com Pryca (Spain)* 186,800 3,469,969
-------------------------------------------------------------------------------
17,096,723
</TABLE>
<PAGE>
Number Market
of Shares Value
----------- ------------
Drug and Hospital Supplies:-2.1%
--------------------------------------------------------------------------
Astra AB (Sweden) 135,000 $ 4,168,214
--------------------------------------------------------------------------
Yamanouchi Pharm (Japan) 127,000 2,862,014
--------------------------------------------------------------------------
7,030,228
Electrical and Electronics:-12.8%
--------------------------------------------------------------------------
BBC Brown Boveri (Switzerland) 3,500 3,623,100
--------------------------------------------------------------------------
Canon Inc. (Japan) 170,000 2,767,978
--------------------------------------------------------------------------
Ericsson (LM) Tel (Sweden) 236,000 4,706,303
--------------------------------------------------------------------------
Getronics NV (Netherlands) 41,800 2,047,512
--------------------------------------------------------------------------
Hitachi LTD (Japan) 200,000 1,993,983
--------------------------------------------------------------------------
Keyence Corporation (Japan) 26,500 2,970,326
--------------------------------------------------------------------------
Kinden Corp. (Japan) 135,000 2,516,666
--------------------------------------------------------------------------
Kyocera Corporation (Japan) 41,000 3,376,556
--------------------------------------------------------------------------
Legrand (France) 26,000 4,126,729
--------------------------------------------------------------------------
Murata Manufacturing Company (Japan) 75,000 2,840,540
--------------------------------------------------------------------------
Nokia A (Finland)* 90,000 5,268,087
--------------------------------------------------------------------------
Rohm Company (Japan) 61,000 3,152,380
--------------------------------------------------------------------------
Tokyo Electron (Japan) 89,000 3,045,248
--------------------------------------------------------------------------
42,435,408
Entertainment:-1.3%
--------------------------------------------------------------------------
Polygram NV (Netherlands) 73,000 4,310,745
--------------------------------------------------------------------------
Financial Services:-6.3%
--------------------------------------------------------------------------
Aegon NV (Netherlands) 105,625 3,674,209
--------------------------------------------------------------------------
Chile Fund Inc.* 71,900 3,864,625
--------------------------------------------------------------------------
India Magnum Fund * 56,250 2,643,750
--------------------------------------------------------------------------
Korea Europe Fund (Korea)* 238,000 1,904,000
--------------------------------------------------------------------------
Korea Fund Inc.* 20,625 404,766
--------------------------------------------------------------------------
Latin Management Company 109,000 3,316,870
--------------------------------------------------------------------------
Mitsubishi Trust and Banking (Japan) 161,000 2,279,512
--------------------------------------------------------------------------
Nichiei Co. (Japan) 44,000 2,715,120
--------------------------------------------------------------------------
20,802,852
Food and Beverage:-3.1%
--------------------------------------------------------------------------
Heineken Holding (Netherlands)* 49,000 4,324,460
--------------------------------------------------------------------------
Nestle SA (Switzerland) 3,300 3,436,127
--------------------------------------------------------------------------
Seven Eleven Japan (Japan) 37,000 2,649,873
--------------------------------------------------------------------------
10,410,460
Forest Products:-1.4%
--------------------------------------------------------------------------
Fletcher Challenge (New Zealand)* 1,617,000 4,540,313
--------------------------------------------------------------------------
Health and Personal Care:-2.4%
--------------------------------------------------------------------------
Gehe AG (Germany) 1,400 643,803
--------------------------------------------------------------------------
Roche Holdings AG - Warrants (Switzerland) 590 3,801,824
--------------------------------------------------------------------------
Schering (Germany)* 50,000 3,492,660
--------------------------------------------------------------------------
7,938,287
Hospital and Health Care:-1.1%
--------------------------------------------------------------------------
Beiersdorf AG (Germany) 4,680 3,722,612
--------------------------------------------------------------------------
Industrial:-2.6%
--------------------------------------------------------------------------
AXA (France) 68,800 3,715,623
--------------------------------------------------------------------------
Carter Holt Harvey (New Zealand)* 1,000,000 2,446,851
--------------------------------------------------------------------------
China North Industries* 2,850,000 2,593,500
--------------------------------------------------------------------------
8,755,974
Machinery and Engineering:-4.2%
--------------------------------------------------------------------------
Keppel Corp. (Singapore) 297,000 2,422,755
--------------------------------------------------------------------------
Mannesmann AG (Germany) 11,800 3,605,105
--------------------------------------------------------------------------
Mitsubishi Hvy Ind (Japan) 242,000 1,644,646
--------------------------------------------------------------------------
Schneider SA (France) 44,000 3,480,057
--------------------------------------------------------------------------
Secom Company (Japan) 44,000 2,767,034
--------------------------------------------------------------------------
13,919,597
Merchandising:-1.1%
--------------------------------------------------------------------------
Hagemeyer (Netherlands) 32,000 1,427,041
--------------------------------------------------------------------------
Pinault Printemps Re (France) 11,050 2,368,850
--------------------------------------------------------------------------
3,795,891
Metals and Mining:-2.9%
--------------------------------------------------------------------------
Broken Hill Proprietary Co. LTD (Australia) 275,000 3,385,217
--------------------------------------------------------------------------
Manila Mining Corp. (Philippines) 150,000,000 587,314
--------------------------------------------------------------------------
Tostem Corp. (Japan) 82,000 2,525,161
--------------------------------------------------------------------------
Western Mining CP (Australia) 572,500 3,153,429
--------------------------------------------------------------------------
9,651,121
Miscellaneous:-6.7%
--------------------------------------------------------------------------
AGIV AG (Germany) 7,225 2,345,813
--------------------------------------------------------------------------
Baer Holdings AG (Switzerland) 2,000 2,344,768
--------------------------------------------------------------------------
Corp. Fin. Reunida (Spain)* 362,677 1,314,470
--------------------------------------------------------------------------
Ecco (France) 23,500 3,686,331
--------------------------------------------------------------------------
Hutchison Whampoa LTD (Hong Kong) 597,000 2,885,549
--------------------------------------------------------------------------
Itochu Corp. (Japan) 302,000 1,763,790
--------------------------------------------------------------------------
Multi Purpose Holding (Malaysia) 1,600,000 2,821,985
--------------------------------------------------------------------------
Riso Kagaku Corporation (Japan) 35,000 2,440,564
--------------------------------------------------------------------------
Swire Pacific (Hong Kong) 352,000 2,683,967
--------------------------------------------------------------------------
22,287,237
Motor Vehicles and Equipment:-3.7%
--------------------------------------------------------------------------
Autoliv AB (Sweden) 60,000 3,209,968
--------------------------------------------------------------------------
Bridgestone Corp. (Japan) 182,000 2,684,207
--------------------------------------------------------------------------
Valeo (France) 67,600 3,287,127
--------------------------------------------------------------------------
Volvo AB (Sweden) 165,500 3,152,446
--------------------------------------------------------------------------
12,333,748
Office and Business Equipment and Services:-2.3%
--------------------------------------------------------------------------
Carlton Communications (UK) 225,400 3,414,880
--------------------------------------------------------------------------
Randstad Holdings (Netherlands) 58,000 4,102,485
--------------------------------------------------------------------------
7,517,365
Paper:-0.9%
--------------------------------------------------------------------------
KNP BT (KON) NV (Netherlands) 102,500 3,082,607
--------------------------------------------------------------------------
Petroleum and Petroleum Related:-2.0%
--------------------------------------------------------------------------
British Petroleum (UK) 476,400 3,413,682
--------------------------------------------------------------------------
Saga Petroleum (Norway)* 225,600 3,211,881
--------------------------------------------------------------------------
6,625,563
Public Utilities:-1.1%
--------------------------------------------------------------------------
Veba AG (Germany) 9,260 3,639,316
--------------------------------------------------------------------------
Real Estate:-1.0%
--------------------------------------------------------------------------
Hong Leong Properties BHD (Malaysia)* 1,500,000 2,030,353
--------------------------------------------------------------------------
Mitsubishi Warehouse (Japan) 100,000 1,368,651
--------------------------------------------------------------------------
3,399,004
Securities Dealers:-0.5%
--------------------------------------------------------------------------
Daiwa Securities (Japan) 153,000 1,613,852
--------------------------------------------------------------------------
Steel:-2.4%
--------------------------------------------------------------------------
Nippon Steel Corp. (Japan) 734,000 2,390,231
--------------------------------------------------------------------------
NKK Corp. (Japan)* 966,000 2,268,114
--------------------------------------------------------------------------
Viag (Germany) 8,360 3,299,507
--------------------------------------------------------------------------
7,957,852
Telecommunications:-2.9%
--------------------------------------------------------------------------
DDI Corp. (Japan) 322 2,583,446
--------------------------------------------------------------------------
Nippon Telephone & Telegraph CP (Japan) 223 1,868,090
--------------------------------------------------------------------------
Videotron (UK)* 86,000 1,214,750
--------------------------------------------------------------------------
Vodafone Group (UK) 1,086,000 4,033,418
--------------------------------------------------------------------------
9,699,704
Total Common Stocks:-94.4%
(Cost - $309,722,344) 314,222,516
--------------------------------------------------------------------------
22
<PAGE>
Maturity Market
Amount Value
Repurchase Agreement: ---------- ----------
State Street Bank and Trust Co. repurchase
agreement dated 6/30/95, 4.75%, maturing
on 7/3/95 collateralized by U.S. Treasury
Bond 9.25%, 2/15/16 $3,494,844 $3,493,000
-------------------------------------------------------------------------
Total Repurchase Agreement: - 1.1%
(Cost - $3,493,000) 3,493,000
-------------------------------------------------------------------------
Total Investments:-95.5%
(Cost - $313,215,344) 317,715,516
-------------------------------------------------------------------------
Other Assets Over Liabilities - 4.5% 15,063,148
-------------------------------------------------------------------------
Net Assets: 100%
(Equivalent to 12.653 per share based
on 26,298,584 shares issued and
outstanding) $332,778,664
=========================================================================
Lincoln National Managed Fund, Inc.
Statement of Net Assets - Unaudited
June 30, 1995
Par Market
Investments Amount Value
---------- ----------
Long-Term Debt Investments:
U.S. Government and Agency Obligations: - 17.3%
-------------------------------------------------------------------------
Federal Home Loan Bank
5.6%, 2/22/99 $4,000,000 $3,847,240
5.8%, 4/20/99 3,000,000 3,000,570
-------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.
4.88%, 6/23/98 3,000,000 2,972,370
8.5%, 1/01/17 1,328,983 1,360,945
-------------------------------------------------------------------------
Federal National Mortgage Association
0% Debenture, 7/05/14* 2,500,000 651,775
-------------------------------------------------------------------------
FNMA
5.85%, Med Term Note 2/02/98 3,000,000 2,966,580
5.24%, Med Term Note 7/15/98 3,000,000 2,920,350
-------------------------------------------------------------------------
GNMA
6.5%, 12/15/23 1,434,811 1,377,419
-------------------------------------------------------------------------
U.S. Treasury Bond
7.13%, 2/15/23 32,000,000 33,779,840
-------------------------------------------------------------------------
U.S. Treasury Notes
8.88%, 2/15/96 7,000,000 7,133,420
7.38%, 5/15/96 2,000,000 2,027,500
6.0%, 6/30/96 13,000,000 13,032,500
5.375%, 5/31/98 5,000,000 4,932,800
7.88%, 11/15/04 3,000,000 3,339,360
6.5%, 8/15/05 7,200,000 7,348,464
-------------------------------------------------------------------------
90,691,133
Collateralized Mortgage Obligations: - 2.0%
-------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. Series 58
8.0% CMO, 4/15/16 2,265,234 2,261,655
-------------------------------------------------------------------------
Federal National Mortgage Association
REMIC 92-84
7.5%, 5/25/20 4,000,000 4,051,360
-------------------------------------------------------------------------
FNMA
7.6%, 7/25/05 2,000,000 2,029,700
-------------------------------------------------------------------------
Mid State Trust III
9.625%, 4/01/22 347,243 354,039
-------------------------------------------------------------------------
Prudential Home Mortgage
6.7%, 11/25/07 1,500,000 1,476,090
-------------------------------------------------------------------------
Spiegel Charge Account Trust 2
6.95%, 12/17/01 500,000 507,275
-------------------------------------------------------------------------
10,680,119
Indexed Securities: - 1.2%
-------------------------------------------------------------------------
Caterpillar Financial Services Corporation
4.25%, 1/08/96, coupon inversely
indexed to 2 year Italian swap
rate multiplied by 5.11 $3,500,000 $3,384,500
-------------------------------------------------------------------------
Goldman Sachs Group LP
4.24%, 12/29/95, coupon inversely
indexed to Euro swap basket
multiplied by 6.5 3,000,000 2,907,300
-------------------------------------------------------------------------
6,291,800
Air Transportation: - 0.9%
-------------------------------------------------------------------------
American Airlines Equipment Trust
10.18%, 1/02/13 1,500,000 1,716,915
-------------------------------------------------------------------------
Delta Air Lines, Inc.
8.25%, Med Term Note, 12/27/07 1,500,000 1,576,395
-------------------------------------------------------------------------
United Airline Inc. Equipment Trust
9.35%, 4/07/16 1,500,000 1,583,625
-------------------------------------------------------------------------
4,876,935
Banking and Insurance: - 4.1%
-------------------------------------------------------------------------
Banc One Corp.
9.875%, 3/01/09 500,000 615,410
-------------------------------------------------------------------------
Barclays Bank Services
3.875%, 11/30/49 2,000,000 1,730,000
-------------------------------------------------------------------------
Dow Capital B V
9.0%, 5/15/10 3,000,000 3,523,710
-------------------------------------------------------------------------
First Chicago Corp.
6.38%, 1/30/09 3,000,000 2,750,130
-------------------------------------------------------------------------
First Union Corp.
8.0%, 8/15/09 2,000,000 2,065,960
-------------------------------------------------------------------------
First USA Bank
5.75%, 1/15/99 2,000,000 1,936,580
-------------------------------------------------------------------------
Fleet Financial Group
7.65%, 9/01/99 1,000,000 1,028,300
-------------------------------------------------------------------------
National Westminster Bancorp
3.69%, 7/30/49 3,000,000 2,557,500
-------------------------------------------------------------------------
National Westminster Bank p.l.c.
9.45% Debentures, 5/01/01 500,000 565,680
-------------------------------------------------------------------------
NationsBank Corp.
8.125% Subordinated Debentures, 6/15/02 1,000,000 1,065,890
-------------------------------------------------------------------------
Travelers Inc.
8.63%, 2/01/07 3,000,000 3,336,480
-------------------------------------------------------------------------
21,175,640
Broadcasting: - 0.1%
-------------------------------------------------------------------------
Viacom Inc.
8.75%, 5/15/01 500,000 518,125
-------------------------------------------------------------------------
Entertainment: - 0.4%
-------------------------------------------------------------------------
Time Warner Inc.
8.88%, 10/01/12 500,000 532,585
9.125%, 1/15/13 1,500,000 1,569,105
-------------------------------------------------------------------------
2,101,690
Finance: - 7.5%
-------------------------------------------------------------------------
Aristar Finance
7.5% Senior Subordinated Note, 7/01/99 1,500,000 1,550,205
-------------------------------------------------------------------------
Avco Financial Services Inc.
7.25%, 7/15/99 1,000,000 1,027,790
-------------------------------------------------------------------------
Chrysler Financial Corporation
9.5%, 12/15/99 1,500,000 1,660,890
-------------------------------------------------------------------------
Discover Credit Corp.
8.73% Med. Term Note, 8/15/96 500,000 514,245
-------------------------------------------------------------------------
Ford Motor Credit Co.
7.95% Med. Term Notes, 5/17/99 2,000,000 2,089,620
-------------------------------------------------------------------------
General Electric Capital Corp.
8.3%, 9/20/09 3,000,000 3,462,000
-------------------------------------------------------------------------
General Motors Acceptance Corp.
7.85%, 11/15/97 1,500,000 1,544,565
8.88%, 6/01/10 1,500,000 1,760,565
-------------------------------------------------------------------------
Household Finance Corp.
9.63% Senior Subordinated Note, 7/15/00 875,000 981,435
-------------------------------------------------------------------------
International Lease Finance Co
8.25%, 1/15/00 2,000,000 2,122,320
-------------------------------------------------------------------------
23
<PAGE>
Par Market
Amount Value
----------- ------------
John Deere Capital Corp.
8.27% Med. Term Note, 8/08/95 $ 500,000 $ 501,300
------------------------------------------------------------------------------
National Rural Utilities Cooperative Finance Corp.
8.5%, 2/15/98 1,000,000 1,049,550
------------------------------------------------------------------------------
Salomon Inc.
7.25%, 1/15/00 1,500,000 1,499,715
------------------------------------------------------------------------------
Student Loan Marketing Association
4.63%, 3/02/99 20,000,000 19,614,000
------------------------------------------------------------------------------
39,378,200
Food and Beverage:-0.8%
------------------------------------------------------------------------------
Coca Cola Enterprises Inc.
8.0%, 1/04/05 3,000,000 3,312,870
------------------------------------------------------------------------------
Nabisco Inc.
7.55%, 6/15/15 750,000 742,297
------------------------------------------------------------------------------
4,055,167
Foreign Government:-0.9%
------------------------------------------------------------------------------
Hydro-Quebec
7.2%, Med Term Note 10/05/09 3,000,000 3,281,700
------------------------------------------------------------------------------
Manitoba (Province of)
7.75%, 7/07/26 1,500,000 1,576,545
------------------------------------------------------------------------------
4,858,245
Machinery and Engineering:-0.4%
------------------------------------------------------------------------------
Deere & Company
8.27%, 8/08/95 2,000,000 2,251,240
------------------------------------------------------------------------------
Metals and Mining:-0.6%
------------------------------------------------------------------------------
Newmont Gold Company Psthr
8.91%, 1/05/09 750,000 806,437
------------------------------------------------------------------------------
Noranda Inc.
8.13%, 6/15/04 2,000,000 2,130,360
------------------------------------------------------------------------------
2,936,797
Miscellaneous:-0.5%
------------------------------------------------------------------------------
Duquesne II Funding Corporation
8.7%, 6/01/16 2,480,000 2,606,430
------------------------------------------------------------------------------
Office and Business Equipment and Services:-0.1%
------------------------------------------------------------------------------
Xerox Corporation - Euronote
8.375%, 9/25/96 500,000 512,430
------------------------------------------------------------------------------
Paper:-0.8%
------------------------------------------------------------------------------
Champion International Corp.
7.7%, 12/15/99 1,500,000 1,558,800
------------------------------------------------------------------------------
Westvaco Corp.
8.3%, 8/01/22 2,500,000 2,647,825
------------------------------------------------------------------------------
4,206,625
Petroleum and Petroleum Related:-2.5%
------------------------------------------------------------------------------
Atlantic Richfield Co.
10.375% Debentures, 7/15/95 1,000,000 1,001,050
9.88%, 3/1/16 2,000,000 2,515,940
------------------------------------------------------------------------------
Enron Corp.
9.5%, 6/15/01 1,000,000 1,134,410
------------------------------------------------------------------------------
Enserch Corp.
7.0%, 8/15/99 1,500,000 1,518,000
------------------------------------------------------------------------------
Noble Affiliates Inc.
7.25%, 10/15/23 600,000 564,852
------------------------------------------------------------------------------
Occidental Petroleum Corp.
11.75%, 3/15/11 2,000,000 2,161,600
------------------------------------------------------------------------------
Petro Canada - Debentures
8.6%, 10/15/01 1,500,000 1,623,090
------------------------------------------------------------------------------
Tenneco Inc.
10.0%, 8/01/98 2,500,000 2,741,900
------------------------------------------------------------------------------
13,260,842
Public Utilities:-5.1%
------------------------------------------------------------------------------
Baltimore Gas & Electric Co.
8.92% Med. Term Note, 7/16/98 1,000,000 1,068,860
------------------------------------------------------------------------------
Carolina Power & Light Company
9.0%, 4/01/22 500,000 536,670
------------------------------------------------------------------------------
Central Maine Power Company
6.5%, 7/22/97 1,500,000 1,482,390
------------------------------------------------------------------------------
Commonwealth Edison Co.
9.375%, 2/15/00 500,000 549,690
------------------------------------------------------------------------------
Detroit Edison Company
6.56%, 5/01/01 2,000,000 1,979,760
------------------------------------------------------------------------------
Great Lakes Power Inc.
8.9%, 12/01/99 1,500,000 1,583,130
------------------------------------------------------------------------------
Gulf States Utilities Company
7.35%, 11/01/98 1,500,000 1,509,585
------------------------------------------------------------------------------
Illinois Power Co.
5.85% 1st Mortgage Bonds, 10/01/96 625,000 621,919
------------------------------------------------------------------------------
Long Island Lighting Co.
9.63%, 7/01/24 500,000 518,230
------------------------------------------------------------------------------
Nevada Power Co.
7.06%, 5/01/00 1,500,000 1,518,300
------------------------------------------------------------------------------
Old Dominion Electric Co-op
7.48%, 12/01/13 1,500,000 1,548,300
------------------------------------------------------------------------------
Pacificorp
9.15% Med. Term Note, 8/09/11 1,500,000 1,742,880
------------------------------------------------------------------------------
Pennsylvania Power & Light
7.70%, 10/01/09 3,000,000 3,234,750
------------------------------------------------------------------------------
Public Service Company of Indiana, Inc.
8.57% 1st Mortgage Bonds, 12/27/11 500,000 552,140
------------------------------------------------------------------------------
Public Service Co. of Colorado
6.375%, 11/01/05 1,500,000 1,420,140
------------------------------------------------------------------------------
Texas Gas Transmission Corp.
8.63%, 4/04/04 2,000,000 2,214,120
------------------------------------------------------------------------------
Texas Utilities Electric Co.
7.375%, 8/01/01 1,500,000 1,541,505
------------------------------------------------------------------------------
Utilicorp United Inc.
9.3% Senior Notes, 12/01/95 1,000,000 1,011,620
------------------------------------------------------------------------------
Utilicorp United Inc.
10.5%, 12/01/20 1,000,000 1,178,540
------------------------------------------------------------------------------
Washington Water Power Co.
8.01%, 12/17/01 1,000,000 1,075,350
------------------------------------------------------------------------------
26,887,879
Railroads:-0.4%
------------------------------------------------------------------------------
Burlington Northern RR
6.94%, 1/02/14 500,000 495,940
------------------------------------------------------------------------------
Chicago & Northwestern Holdings Corporation
6.25%, 7/30/12 1,496,890 1,416,806
------------------------------------------------------------------------------
1,912,746
Retail:-0.6%
------------------------------------------------------------------------------
Sears, Roebuck and Co.
9.05%, 2/06/12 2,500,000 2,861,450
------------------------------------------------------------------------------
Securities Dealers:-0.8%
------------------------------------------------------------------------------
Lehman Brothers Holdings Inc.
8.5%, 5/01/07 1,000,000 1,063,540
------------------------------------------------------------------------------
Smith Barney Holdings
7.88%, 10/01/99 3,000,000 3,129,090
------------------------------------------------------------------------------
4,192,630
Telecommunications:-1.0%
------------------------------------------------------------------------------
NYNEX Cap Funding
7.63%, 10/15/09 3,000,000 3,086,250
------------------------------------------------------------------------------
Tele-Communications Inc.
6.58%, 2/15/05 2,000,000 2,014,300
------------------------------------------------------------------------------
5,100,550
Total Long-Term Debt Investments-48.0%
(Cost-$243,568,455) 251,356,673
------------------------------------------------------------------------------
Number
Common Stocks: of Shares
-----------
Aerospace:-0.8%
------------------------------------------------------------------------------
McDonnell Douglas Corporation 52,600 4,037,050
------------------------------------------------------------------------------
Air Transportation:-0.2%
------------------------------------------------------------------------------
AMR Corp.* 15,900 1,186,537
------------------------------------------------------------------------------
24
<PAGE>
<TABLE>
<CAPTION>
Number Market
of Shares Value
--------- -----
<S> <C> <C>
BANKING AND INSURANCE:-4.0%
------------------------------------------------------------------------------
Bank of Boston Corporation 107,700 $4,038,750
------------------------------------------------------------------------------
Bank of New York, Inc. 92,800 3,746,800
------------------------------------------------------------------------------
Chase Manhattan Corp. 12,400 582,800
------------------------------------------------------------------------------
Chemical Banking Corp. 73,100 3,453,975
------------------------------------------------------------------------------
Cigna Corp. 50,300 3,904,538
------------------------------------------------------------------------------
First Interstate Bank 3,200 256,800
------------------------------------------------------------------------------
Healthcare Compare Corp.* 29,300 879,000
------------------------------------------------------------------------------
MBNA Corp. 50,400 1,701,000
------------------------------------------------------------------------------
NWNL Cos. Inc. 3,300 126,225
------------------------------------------------------------------------------
Ohio Casualty Corp. 7,000 222,250
------------------------------------------------------------------------------
St. Paul Companies Inc. 14,100 694,425
------------------------------------------------------------------------------
Transamerica Corp. 20,700 1,205,775
------------------------------------------------------------------------------
20,812,338
BROADCASTING:-0.6%
------------------------------------------------------------------------------
Belo (A.H.) Corporation 7,300 223,563
------------------------------------------------------------------------------
Capital Cities ABC Inc. 24,600 2,656,800
------------------------------------------------------------------------------
2,880,363
BUILDING AND CONSTRUCTION:-0.3%
------------------------------------------------------------------------------
Armstrong World Industries Inc. 29,300 1,468,662
------------------------------------------------------------------------------
CHEMICALS:-2.2%
------------------------------------------------------------------------------
ASARCO Inc. 32,700 997,350
------------------------------------------------------------------------------
Dow Chemical Co. 35,500 2,551,562
------------------------------------------------------------------------------
Du Pont E I De Nemours & Co. 25,900 1,780,625
------------------------------------------------------------------------------
Eastman Chemical Company 20,400 1,213,800
------------------------------------------------------------------------------
Georgia Gulf Corp. 24,800 809,100
------------------------------------------------------------------------------
Olin Corp. 53,000 2,729,500
------------------------------------------------------------------------------
Union Carbide Corp. 40,600 1,355,025
------------------------------------------------------------------------------
11,436,962
CONSUMER PRODUCTS AND SERVICES:-3.0%
------------------------------------------------------------------------------
American Brands, Inc. 21,100 838,725
------------------------------------------------------------------------------
Handleman Company 36,900 355,163
------------------------------------------------------------------------------
Omnicom Group, Inc. 11,000 666,875
------------------------------------------------------------------------------
Philip Morris Co. Inc. 105,000 7,809,375
------------------------------------------------------------------------------
Procter & Gamble Co. 81,400 5,850,625
------------------------------------------------------------------------------
15,520,763
DRUG AND HOSPITAL SUPPLIES:-4.2%
------------------------------------------------------------------------------
Baxter International Inc. 118,800 4,321,350
------------------------------------------------------------------------------
Bristol Myers Squibb Co. 81,500 5,552,188
------------------------------------------------------------------------------
Lilly (Eli) & Company 64,000 5,024,000
------------------------------------------------------------------------------
Schering-Plough Corporation 90,400 3,988,900
------------------------------------------------------------------------------
Upjohn Co. 86,100 3,261,037
------------------------------------------------------------------------------
22,147,475
ELECTRICAL AND ELECTRONICS:-2.9%
------------------------------------------------------------------------------
General Electric Co. 121,000 6,821,375
------------------------------------------------------------------------------
General Instrument Corp.* 41,000 1,573,375
------------------------------------------------------------------------------
Tektronix Inc. 63,300 3,117,525
------------------------------------------------------------------------------
Teradyne Inc.* 55,000 3,595,625
------------------------------------------------------------------------------
15,107,900
ENTERTAINMENT:-0.7%
------------------------------------------------------------------------------
Mattel Inc. 11,412 296,712
------------------------------------------------------------------------------
Mirage Resorts Inc.* 115,800 3,546,375
------------------------------------------------------------------------------
3,843,087
FINANCIAL SERVICES:-1.7%
------------------------------------------------------------------------------
American General Corp. 114,900 3,877,875
------------------------------------------------------------------------------
Household International Inc. 69,000 3,415,500
------------------------------------------------------------------------------
Dean Witter Discover & Co. 31,800 1,494,600
------------------------------------------------------------------------------
8,787,975
FOOD AND BEVERAGE:-3.6%
------------------------------------------------------------------------------
Campbell Soup Co. 55,100 2,699,900
------------------------------------------------------------------------------
Coca Cola Co. 48,600 3,098,250
------------------------------------------------------------------------------
ConAgra, Inc. 104,400 3,640,950
------------------------------------------------------------------------------
Coors (Adolph) C.B. 17,400 281,654
------------------------------------------------------------------------------
IBP, Inc. 90,700 3,945,450
------------------------------------------------------------------------------
RJR Nabisco Holding Corp. 73,580 2,051,043
------------------------------------------------------------------------------
Safeway Inc.* 80,000 2,990,000
------------------------------------------------------------------------------
18,707,247
HOUSEHOLD APPLIANCES:-0.3%
------------------------------------------------------------------------------
Maytag Corp. 103,600 1,657,600
------------------------------------------------------------------------------
INDUSTRIAL:-0.4%
------------------------------------------------------------------------------
TRW Inc. 24,600 1,964,925
------------------------------------------------------------------------------
MACHINERY AND ENGINEERING:-1.3%
------------------------------------------------------------------------------
Briggs & Stratton Corporation 38,000 1,311,000
------------------------------------------------------------------------------
Deere & Company 24,500 2,097,812
------------------------------------------------------------------------------
Novellus Systems Inc.* 53,900 3,651,725
------------------------------------------------------------------------------
7,060,537
METALS AND MINING:-1.0%
------------------------------------------------------------------------------
Cyprus Amax Minerals Company 15,600 444,600
------------------------------------------------------------------------------
Parker Hannifin Corp. 33,750 1,223,438
------------------------------------------------------------------------------
Phelps Dodge Corp. 60,000 3,540,000
------------------------------------------------------------------------------
5,208,038
MISCELLANEOUS:-0.1%
------------------------------------------------------------------------------
Outboard Marine Corporation 38,600 757,525
------------------------------------------------------------------------------
MOTOR VEHICLES AND EQUIPMENT:-1.6%
------------------------------------------------------------------------------
Eaton Corp. 66,200 3,847,875
------------------------------------------------------------------------------
Ford Motor Company 112,700 3,352,825
------------------------------------------------------------------------------
Goodrich BF Company 26,500 1,421,062
------------------------------------------------------------------------------
8,621,762
OFFICE AND BUSINESS EQUIPMENT AND SERVICES:-5.2%
------------------------------------------------------------------------------
Advanced Micro Devices, Inc. 17,200 625,650
------------------------------------------------------------------------------
Avery Dennison Corp. 38,700 1,548,000
------------------------------------------------------------------------------
Broderbund Software Inc.* 27,100 1,724,238
------------------------------------------------------------------------------
Cadence Design Systems Inc.* 46,100 1,492,488
------------------------------------------------------------------------------
Ceridian Corporation* 36,300 1,338,563
------------------------------------------------------------------------------
Computer Associates International Inc. 45,100 3,055,525
------------------------------------------------------------------------------
Digital Equipment Corp.* 14,800 603,100
------------------------------------------------------------------------------
International Business Machines 52,500 5,040,000
------------------------------------------------------------------------------
Micron Technology Inc. 82,000 4,499,750
------------------------------------------------------------------------------
Reynolds & Reynolds Co. 27,800 820,100
------------------------------------------------------------------------------
Sun Microsystems Inc.* 77,700 3,773,267
------------------------------------------------------------------------------
Tandem Computers Inc.* 156,400 2,521,950
------------------------------------------------------------------------------
27,042,631
PAPER:-0.7%
------------------------------------------------------------------------------
Federal Paper Board Co. 50,900 1,800,587
------------------------------------------------------------------------------
Stone Container Corp.* 85,400 1,814,750
------------------------------------------------------------------------------
3,615,337
PETROLEUM AND PETROLEUM RELATED:-4.8%
------------------------------------------------------------------------------
Amoco Corp. 68,100 4,537,162
------------------------------------------------------------------------------
Atlantic Richfield Co. 23,500 2,579,125
------------------------------------------------------------------------------
Exxon Corp. 89,400 6,313,875
------------------------------------------------------------------------------
Halliburton Co. 45,800 1,637,350
------------------------------------------------------------------------------
Lyondell Petrochemical Company 123,600 3,167,250
------------------------------------------------------------------------------
Mobil Corp. 34,800 3,340,800
------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 22,500 2,742,188
------------------------------------------------------------------------------
Williams Companies, Inc. 25,200 878,850
------------------------------------------------------------------------------
25,196,600
PUBLIC UTILITIES:-2.4%
------------------------------------------------------------------------------
Baltimore Gas & Electric Co. 43,100 1,077,500
------------------------------------------------------------------------------
Consolidated Edison Company 121,000 3,569,500
------------------------------------------------------------------------------
General Public Utilities Corp. 71,400 2,124,150
------------------------------------------------------------------------------
Northeast Utilities 110,100 2,477,250
------------------------------------------------------------------------------
Ohio Edison Co. 28,500 644,813
------------------------------------------------------------------------------
SCE Corporation 167,100 2,861,588
------------------------------------------------------------------------------
12,754,801
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
Number Market
of Shares Value
---------- ------------
<S> <C> <C>
Railroads:-0.6%
-------------------------------------------------------------------------------
Conrail Inc. 20,800 $ 1,157,000
-------------------------------------------------------------------------------
Illinois Central Corp. 56,100 1,935,450
-------------------------------------------------------------------------------
3,092,450
Retail:-3.0%
-------------------------------------------------------------------------------
Eckerd Corp.* 21,900 700,800
-------------------------------------------------------------------------------
Jostens Inc. 129,500 2,751,875
-------------------------------------------------------------------------------
Kroger Co.* 100,700 2,706,312
-------------------------------------------------------------------------------
Pier 1 Imports Inc. 71,000 656,750
-------------------------------------------------------------------------------
Sears, Roebuck and Co. 62,900 3,766,137
-------------------------------------------------------------------------------
Staples Inc.* 64,200 1,857,755
-------------------------------------------------------------------------------
Waban Inc.* 60,200 895,475
-------------------------------------------------------------------------------
Wal-Mart Stores 83,600 2,236,300
-------------------------------------------------------------------------------
15,571,404
Savings and Loan:-0.7%
-------------------------------------------------------------------------------
First Chicago Corp. 63,500 3,802,063
-------------------------------------------------------------------------------
Shoes:-0.2%
-------------------------------------------------------------------------------
Nike, Inc. 15,800 1,327,200
-------------------------------------------------------------------------------
Soaps, Cleaner and Cosmetics:-0.9%
-------------------------------------------------------------------------------
Colgate-Palmolive Company 51,200 3,744,000
-------------------------------------------------------------------------------
Dial Corp. 29,800 737,550
-------------------------------------------------------------------------------
4,481,550
Telecommunications:-4.4%
-------------------------------------------------------------------------------
American Telephone & Telegraph Co. 66,100 3,511,562
-------------------------------------------------------------------------------
Ameritech Corp. 105,800 4,655,200
-------------------------------------------------------------------------------
Bellsouth Corp. 62,600 3,975,100
-------------------------------------------------------------------------------
Cincinnati Bell Inc. 63,500 1,603,375
-------------------------------------------------------------------------------
Comsat Corporation 18,000 353,250
-------------------------------------------------------------------------------
GTE Corp. 86,300 2,944,987
-------------------------------------------------------------------------------
Pacific Telesis Group 122,600 3,279,550
-------------------------------------------------------------------------------
SBC Communications Inc. 200 9,525
-------------------------------------------------------------------------------
Sprint Corp. 76,200 2,562,225
-------------------------------------------------------------------------------
22,894,774
Textiles-Apparel Manufacturing:-0.1%
-------------------------------------------------------------------------------
V F Corporation 11,900 639,625
-------------------------------------------------------------------------------
Transportation:-0.2%
-------------------------------------------------------------------------------
PHH Corporation 25,100 1,116,950
-------------------------------------------------------------------------------
Total Common Stocks--52.1%
(Cost-$225,785,633) 272,742,131
-------------------------------------------------------------------------------
Par
Amount
----------
Money Market Instruments:
General Electric Co.
6.11%, 7/05/95 $5,085,000 5,085,000
-------------------------------------------------------------------------------
Total Money Market Instruments:-1.0%
(Cost-$5,085,000) 5,085,000
-------------------------------------------------------------------------------
Total Investments:-101.1%
(Cost-$474,439,088) 529,183,804
-------------------------------------------------------------------------------
Other Assets Under Liabilities-(1.1%) (5,697,662)
-------------------------------------------------------------------------------
Net Assets--100.0%
(equivalent to $14.509 per share
based on 36,079,481 shares
issued and outstanding) $523,486,142
===============================================================================
Lincoln National Money Market
Fund, Inc.
Statement of Net Assets - Unaudited
June 30, 1995
<CAPTION>
Par Market
Investments Amount Value
---------- ------------
<S> <C> <C>
Money Market Instruments:
AT & T Corp.
5.73%, 9/01/95 $1,500,000 $ 1,479,468
-------------------------------------------------------------------------------
Boatman's Bank of Southern Missouri
6.25%, 2/14/96 4,100,000 4,099,559
-------------------------------------------------------------------------------
Caterpellar Financial Services Corp
6.12%, 7/25/96 4,000,000 4,000,000
-------------------------------------------------------------------------------
Chemical Banking Corp.
6.02%, 11/17/95 3,500,000 3,395,235
-------------------------------------------------------------------------------
Comerica Bank
6.11%, 11/22/95 3,900,000 3,898,568
-------------------------------------------------------------------------------
Daimler-Benz N America Corp.
5.94%, 7/20/95 4,000,000 3,961,720
-------------------------------------------------------------------------------
Donnelley (R.R.) & Sons Co.
5.92%, 7/27/95 3,000,000 2,968,920
-------------------------------------------------------------------------------
DuPont (E.I) De Nemours & Company
6.0%, 7/06/95 3,500,000 3,453,334
-------------------------------------------------------------------------------
General Electric Co.
6.11%, 7/05/95 2,960,000 2,960,000
-------------------------------------------------------------------------------
International Lease Finance Co.
5.93%, 7/17/95 4,000,000 3,955,854
-------------------------------------------------------------------------------
J.P. Morgan & Company
5.95%, 7/24/95 3,200,000 3,153,458
-------------------------------------------------------------------------------
Kimberly Clark Corp.
5.94%, 7/19/95 4,000,000 3,955,120
-------------------------------------------------------------------------------
Merrill Lynch & Company Inc.
5.93%, 8/21/95 4,000,000 3,936,747
-------------------------------------------------------------------------------
Monsanto Company
6.07%, 8/03/95 3,000,000 2,941,829
-------------------------------------------------------------------------------
Philip Morris Co. Inc.
6.02%, 7/12/95 3,500,000 3,447,325
-------------------------------------------------------------------------------
PNC Bank
4.86%, 8/07/95 4,000,000 3,999,885
-------------------------------------------------------------------------------
Prudential Funding Inc.
5.88%, 8/17/95 1,500,000 1,483,095
-------------------------------------------------------------------------------
Southwestern Bell Telephone Co.
5.98%, 8/07/95 3,800,000 3,738,140
-------------------------------------------------------------------------------
Temple-Inland Inc.
5.9%, 8/04/95 3,800,000 3,746,441
-------------------------------------------------------------------------------
Toyota Motor Credit
6.08%, 1/12/95 3,000,000 3,000,000
-------------------------------------------------------------------------------
Unilever Capital Corp.
5.97%, 7/06/95 3,700,000 3,652,754
-------------------------------------------------------------------------------
U.S. Treasury Bill
6.235%, 8/10/95 5,000,000 4,842,393
6.61%, 2/08/96 5,000,000 4,665,828
-------------------------------------------------------------------------------
U.S. West Communications Group
5.99%, 7/17/95 3,500,000 3,447,588
-------------------------------------------------------------------------------
Vermont American Corp.
5.95%, 7/27/95 2,000,000 1,985,125
-------------------------------------------------------------------------------
Total Money Market Instruments--101.7%
(Cost-$88,168,386) 86,168,386
-------------------------------------------------------------------------------
Other Assets Under Liabilities-(1.7%) (1,422,372)
-------------------------------------------------------------------------------
Net Assets--100.0%
(equivalent to $10.000 per share
based on 8,474,602 shares
issued and outstanding) $84,746,014
===============================================================================
</TABLE>
26
<PAGE>
Lincoln National Social Awareness
Fund, Inc.
Statement of Net Assets-Unaudited
June 30, 1995
Number Market
Investments of Shares Value
--------- ------
Common Stocks:
Banking and Insurance:-18.0%
-----------------------------------------------------------------------------
AFLAC Inc. 48,600 $ 2,126,250
-----------------------------------------------------------------------------
Bank of Boston Corporation 78,100 2,928,750
-----------------------------------------------------------------------------
Bank of New York, Inc. 75,700 3,056,387
-----------------------------------------------------------------------------
Chase Manhattan Corp. 62,300 2,928,100
-----------------------------------------------------------------------------
Chemical Banking Corp. 76,900 3,633,525
-----------------------------------------------------------------------------
Cigna Corp. 35,100 2,724,638
-----------------------------------------------------------------------------
First Interstate Bank 15,500 1,243,875
-----------------------------------------------------------------------------
First Union Corp. 62,100 2,810,025
-----------------------------------------------------------------------------
Healthcare Compare Corp. * 79,000 2,370,000
-----------------------------------------------------------------------------
MBNA Corp. 86,400 2,916,000
-----------------------------------------------------------------------------
NationsBank Corp. 70,200 3,764,475
-----------------------------------------------------------------------------
NBD Bancorp, Inc. 48,100 1,539,200
-----------------------------------------------------------------------------
St. Paul Companies Inc. 30,500 1,502,125
-----------------------------------------------------------------------------
Transamerica Corp. 47,600 2,772,700
-----------------------------------------------------------------------------
US Life Corporation 51,300 2,064,825
-----------------------------------------------------------------------------
38,380,875
Broadcasting:-2.0%
-----------------------------------------------------------------------------
Belo (A.H.) Corporation 14,400 441,000
-----------------------------------------------------------------------------
Capital Cities ABC Inc. 35,900 3,877,200
-----------------------------------------------------------------------------
4,318,200
Building and Construction:-0.8%
-----------------------------------------------------------------------------
Armstrong World Industries Inc. 34,800 1,744,350
-----------------------------------------------------------------------------
Consumer Products and Services:-2.0%
-----------------------------------------------------------------------------
Handleman Company 36,800 354,200
-----------------------------------------------------------------------------
Procter & Gamble Co. 55,300 3,974,687
-----------------------------------------------------------------------------
4,328,887
Drug and Hospital Supplies:-4.9%
-----------------------------------------------------------------------------
Amgen Inc. * 44,700 3,592,762
-----------------------------------------------------------------------------
Baxter International Inc. 104,000 3,783,000
-----------------------------------------------------------------------------
Nellcor Inc. * 40,000 1,785,000
-----------------------------------------------------------------------------
Schering-Plough Corporation 30,000 1,323,750
-----------------------------------------------------------------------------
10,484,512
Electrical and Electronics:-2.2%
-----------------------------------------------------------------------------
Avnet Inc. 12,600 609,525
-----------------------------------------------------------------------------
Good Guys Inc. * 152,100 1,682,530
-----------------------------------------------------------------------------
Tandy Company 45,400 2,355,125
-----------------------------------------------------------------------------
4,647,180
Entertainment:-1.2%
-----------------------------------------------------------------------------
Mattel Inc. 97,718 2,540,668
-----------------------------------------------------------------------------
Financial Services:-5.4%
-----------------------------------------------------------------------------
American General Corp. 93,500 3,155,625
-----------------------------------------------------------------------------
Green Tree Financial Corporation 60,400 2,680,250
-----------------------------------------------------------------------------
Household International Inc. 85,400 4,227,300
-----------------------------------------------------------------------------
Dean Witter Discover & Co. 18,000 846,000
-----------------------------------------------------------------------------
Student Loan Marketing Association 13,700 642,187
-----------------------------------------------------------------------------
11,551,362
Food and Beverage:-10.1%
-----------------------------------------------------------------------------
Campbell Soup Co. 75,400 3,694,600
-----------------------------------------------------------------------------
Coca Cola Co. 134,000 8,542,500
-----------------------------------------------------------------------------
Flowers Industries Inc. 134,200 2,650,450
-----------------------------------------------------------------------------
Hormel Foods Corp. 80,400 2,100,450
-----------------------------------------------------------------------------
International Multifoods Corp. 74,000 1,665,000
-----------------------------------------------------------------------------
Safeway Inc. * 58,700 2,193,913
-----------------------------------------------------------------------------
Universal Foods Corporation 21,300 689,588
-----------------------------------------------------------------------------
21,536,501
Household Appliances:-0.8%
-----------------------------------------------------------------------------
Maytag Corp. 109,300 1,748,800
-----------------------------------------------------------------------------
Machinery and Engineering:-2.1%
-----------------------------------------------------------------------------
Briggs & Stratton Corporation 53,000 1,828,500
-----------------------------------------------------------------------------
Novellus Systems Inc. * 38,500 2,608,375
-----------------------------------------------------------------------------
4,436,875
Metals and Mining:-1.4%
-----------------------------------------------------------------------------
Cleveland-Cliffs, Inc. 47,200 1,817,200
-----------------------------------------------------------------------------
Kennametal Inc. 33,200 1,170,300
-----------------------------------------------------------------------------
2,987,500
Miscellaneous:-0.8%
-----------------------------------------------------------------------------
Sealed Air Corp. * 39,500 1,738,000
-----------------------------------------------------------------------------
Office and Business Equipment and Services:-9.3%
-----------------------------------------------------------------------------
Cadence Design Systems Inc. * 77,500 2,509,063
-----------------------------------------------------------------------------
Computer Associates International Inc. 40,100 2,716,775
-----------------------------------------------------------------------------
Dell Computer Corp. * 44,400 2,672,303
-----------------------------------------------------------------------------
Federal Express Corporation * 38,300 2,326,725
-----------------------------------------------------------------------------
Kelly Services Inc. 78,300 1,996,650
-----------------------------------------------------------------------------
Manpower Inc. 82,100 2,093,550
-----------------------------------------------------------------------------
Reynolds & Reynolds Co. 84,600 2,495,700
-----------------------------------------------------------------------------
Sun Microsystems Inc. * 62,500 3,035,125
-----------------------------------------------------------------------------
19,845,891
Petroleum and Petroleum Related:-1.8%
-----------------------------------------------------------------------------
Smith International Inc. * 98,900 1,656,575
-----------------------------------------------------------------------------
Williams Companies, Inc. 65,300 2,277,337
-----------------------------------------------------------------------------
3,933,912
Printing and Publishing:-1.0%
-----------------------------------------------------------------------------
Banta Corporation 40,750 1,370,219
-----------------------------------------------------------------------------
Ennis Business Forms, Inc. 64,100 793,238
-----------------------------------------------------------------------------
2,163,457
Public Utilities:-0.9%
-----------------------------------------------------------------------------
Portland General 90,100 1,993,462
-----------------------------------------------------------------------------
Retail:-8.6%
-----------------------------------------------------------------------------
C M L Group Inc. 59,250 466,594
-----------------------------------------------------------------------------
Eckerd Corp. * 29,100 931,200
-----------------------------------------------------------------------------
Hancock Fabrics Inc. 100,000 912,500
-----------------------------------------------------------------------------
Jostens Inc. 83,300 1,770,125
-----------------------------------------------------------------------------
Kroger Co. * 102,800 2,762,750
-----------------------------------------------------------------------------
Mac Frugals Bargain Close-Out Inc. * 43,500 761,250
-----------------------------------------------------------------------------
Sears, Roebuck and Co. 84,500 5,059,437
-----------------------------------------------------------------------------
Smith's Food & Drug Centers Inc. 71,000 1,402,250
-----------------------------------------------------------------------------
Staples Inc. * 88,400 2,558,031
-----------------------------------------------------------------------------
Waban Inc. * 64,200 954,975
-----------------------------------------------------------------------------
Wal-Mart Stores 27,800 743,650
-----------------------------------------------------------------------------
18,322,762
Savings and Loan:-1.4%
-----------------------------------------------------------------------------
First Chicago Corp. 50,700 3,035,663
-----------------------------------------------------------------------------
Soaps, Cleaner and Cosmetics:-4.0%
-----------------------------------------------------------------------------
Clorox Company 40,900 2,668,725
-----------------------------------------------------------------------------
Dial Corp. 76,000 1,881,000
-----------------------------------------------------------------------------
Gillette Company 40,000 1,785,000
-----------------------------------------------------------------------------
International Flavors & Fragrances, Inc. 44,700 2,223,825
-----------------------------------------------------------------------------
8,558,550
Telecommunications:-11.4%
-----------------------------------------------------------------------------
Ameritech Corp. 117,400 5,165,600
-----------------------------------------------------------------------------
Bell Atlantic Corp. 40,700 2,279,200
-----------------------------------------------------------------------------
Bellsouth Corp. 58,100 3,689,350
-----------------------------------------------------------------------------
Cincinnati Bell Inc. 61,000 1,540,250
-----------------------------------------------------------------------------
Comsat Corporation 42,000 824,250
-----------------------------------------------------------------------------
Pacific Telesis Group 125,500 3,357,125
-----------------------------------------------------------------------------
SBC Communications Inc. 72,000 3,429,000
-----------------------------------------------------------------------------
Southern New England Telecomm 26,800 944,700
-----------------------------------------------------------------------------
Sprint Corp. 89,700 3,016,162
-----------------------------------------------------------------------------
24,245,637
27
<PAGE>
<TABLE>
<CAPTION>
Number Market
of Shares Value
---------- ------------
<S> <C> <C>
Textiles-Apparel Manufacturing:-0.4%
-------------------------------------------------------------------------
V F Corporation 14,400 $774,000
-------------------------------------------------------------------------
Total Common Stocks-90.5%
(Cost-$164,972,199) 193,317,044
-------------------------------------------------------------------------
Par
Money Market Instruments: Amount
----------
BellSouth Telecommunications
5.95%, 7/20/95 $2,900,000 2,889,934
-------------------------------------------------------------------------
Credit Suisse Financial
6.0%, 7/06/95 7,800,000 7,788,300
-------------------------------------------------------------------------
DuPont (E.I.) De Nemours & Co.
5.98%, 7/13/95 1,293,000 1,290,208
-------------------------------------------------------------------------
Merrill Lynch & Company Inc.
5.98%, 7/13/95 1,500,000 1,494,768
-------------------------------------------------------------------------
Pfizer Inc.
5.95, 7/10/95 6,800,000 6,779,770
-------------------------------------------------------------------------
U.S. Treasury Bill *
0.0%, 5/02/96 750,000 704,993
-------------------------------------------------------------------------
Total Money Market Instruments-9.8%
(Cost-$20,947,973) 20,947,973
-------------------------------------------------------------------------
Total Investments-100.3%
(Cost-$185,920,172) 214,265,017
-------------------------------------------------------------------------
Other Assets Under Liabilities-(0.3%) (585,481)
-------------------------------------------------------------------------
Net Assets-100.0%
(equivalent to $18.986 per share
based on 11,254,668 shares
issued and outstanding) $213,679,536
=========================================================================
Lincoln National Special Opportunities
Fund, Inc.
Statement of Net Assets - Unaudited
June 30, 1995
Number Market
Investments of Shares Value
---------- ------------
Common Stocks:
Aerospace:-1.9%
-------------------------------------------------------------------------
McDonnell Douglas Corporation 52,100 $3,998,675
-------------------------------------------------------------------------
Parker Hannifin Corp. 109,050 3,953,063
-------------------------------------------------------------------------
7,951,738
Banking and Insurance:-9.4%
-------------------------------------------------------------------------
Aon Corp. 109,500 4,078,875
-------------------------------------------------------------------------
Bank of Boston Corporation 108,000 4,050,000
-------------------------------------------------------------------------
Bank of New York, Inc. 99,100 4,001,163
-------------------------------------------------------------------------
Chase Manhattan Corp. 67,300 3,152,888
-------------------------------------------------------------------------
Chemical Banking Corp. 81,900 3,869,775
-------------------------------------------------------------------------
Cigna Corp. 51,600 4,005,450
-------------------------------------------------------------------------
First Interstate Bank 48,800 3,916,200
-------------------------------------------------------------------------
NWNL Cos. Inc. 104,300 3,989,475
-------------------------------------------------------------------------
Transamerica Corp. 70,400 4,100,800
-------------------------------------------------------------------------
US Life Corporation 99,300 3,996,825
-------------------------------------------------------------------------
39,161,451
Building and Construction:-0.9%
-------------------------------------------------------------------------
Armstrong World Industries 77,400 3,879,675
-------------------------------------------------------------------------
Chemicals:-5.1%
-------------------------------------------------------------------------
ASARCO Inc. 141,700 4,321,850
-------------------------------------------------------------------------
Cabot Corp. 84,600 4,462,650
-------------------------------------------------------------------------
Georgia Gulf Corp. 122,300 3,990,037
-------------------------------------------------------------------------
Olin Corp. 78,200 4,027,300
-------------------------------------------------------------------------
Union Carbide Corp. 131,500 4,388,813
-------------------------------------------------------------------------
21,190,650
Coal and Gas:-1.0%
-------------------------------------------------------------------------
Pacific Enterprises 178,400 4,370,800
-------------------------------------------------------------------------
Consumer Products and Services:-4.5%
-------------------------------------------------------------------------
American Brands, Inc. 98,900 3,931,275
-------------------------------------------------------------------------
Handleman Company 382,800 3,684,450
-------------------------------------------------------------------------
Leggett & Platt Inc. 92,000 4,048,000
-------------------------------------------------------------------------
The Stanley Works 89,900 3,404,962
-------------------------------------------------------------------------
Universal Corporation 179,700 3,773,700
-------------------------------------------------------------------------
18,842,387
Drug and Hospital Supplies:-5.0%
-------------------------------------------------------------------------
Amsco International Inc. * 310,100 4,302,638
-------------------------------------------------------------------------
Baxter International Inc. 115,400 4,197,675
-------------------------------------------------------------------------
Marion Merrell Dow Inc. 158,800 4,049,400
-------------------------------------------------------------------------
Nellcor Inc. * 89,000 3,971,625
-------------------------------------------------------------------------
Upjohn Co. 112,000 4,242,000
-------------------------------------------------------------------------
20,763,338
Electrical and Electronics:-2.8%
-------------------------------------------------------------------------
Arrow Electrics Inc. * 83,200 4,139,200
-------------------------------------------------------------------------
Cypress Semiconductor Corporation * 94,900 3,843,450
-------------------------------------------------------------------------
Harris Corp. 74,100 3,825,412
-------------------------------------------------------------------------
11,808,062
Entertainment:-2.0%
-------------------------------------------------------------------------
Mattel Inc. 158,343 4,116,918
-------------------------------------------------------------------------
Mirage Resorts Inc. * 133,800 4,097,625
-------------------------------------------------------------------------
8,214,543
Financial Services:-1.8%
-------------------------------------------------------------------------
Beneficial Corp. 81,200 3,572,800
-------------------------------------------------------------------------
Household International Inc. 81,500 4,034,250
-------------------------------------------------------------------------
7,607,050
Food and Beverage:-2.9%
-------------------------------------------------------------------------
Coors (Adolph) C.B. 235,500 3,812,039
-------------------------------------------------------------------------
IBP, Inc. 96,900 4,215,150
-------------------------------------------------------------------------
International Multifoods Inc. 181,900 4,092,750
-------------------------------------------------------------------------
12,119,939
Industrial:-3.0%
-------------------------------------------------------------------------
Timken Company 94,700 4,368,038
-------------------------------------------------------------------------
Trinova Corp. 114,100 3,993,500
-------------------------------------------------------------------------
TRW Inc. 51,700 4,129,537
-------------------------------------------------------------------------
12,491,075
Machinery and Engineering:-3.8%
-------------------------------------------------------------------------
Briggs & Stratton Corporation 114,700 3,957,150
-------------------------------------------------------------------------
Carpenter Technology Corporation 61,500 4,189,688
-------------------------------------------------------------------------
Deere & Company 44,800 3,836,000
-------------------------------------------------------------------------
Novellus Systems Inc. * 57,900 3,922,725
-------------------------------------------------------------------------
15,905,563
Metals and Mining:-2.8%
-------------------------------------------------------------------------
Ball Corporation 104,500 3,644,437
-------------------------------------------------------------------------
Cleveland-Cliffs, Inc. 106,300 4,092,550
-------------------------------------------------------------------------
Phelps Dodge Corp. 67,400 3,976,600
-------------------------------------------------------------------------
11,713,587
Miscellaneous:-0.0%
-------------------------------------------------------------------------
Flight Transportation Corporation * 4,725 1
-------------------------------------------------------------------------
Motor Vehicles and Equipment:-2.0%
-------------------------------------------------------------------------
Dana Corp. 150,000 4,293,750
-------------------------------------------------------------------------
Eaton Corp. 72,500 4,214,062
-------------------------------------------------------------------------
8,507,812
Office and Business Equipment and Services:-11.3%
-------------------------------------------------------------------------
Advanced Micro Devices, Inc. 112,700 4,099,463
-------------------------------------------------------------------------
Avery Dennison Corp. 93,200 3,728,000
-------------------------------------------------------------------------
Cadence Design Systems Inc. * 136,200 4,409,475
-------------------------------------------------------------------------
Comdisco Inc. 133,300 4,048,987
-------------------------------------------------------------------------
Computer Associates International Inc. 57,300 3,882,075
-------------------------------------------------------------------------
Manpower Inc. 160,000 4,080,000
-------------------------------------------------------------------------
Micron Technology Inc. 71,100 3,680,404
-------------------------------------------------------------------------
</TABLE>
28
<PAGE>
Number Market
of Shares Value
----------- ------
New England Business Services Inc. 181,000 $ 3,574,750
-------------------------------------------------------------------------------
Reynolds & Reynolds Co. 132,100 3,896,950
-------------------------------------------------------------------------------
Sun Microsystems Inc. * 81,300 3,948,091
-------------------------------------------------------------------------------
Tandem Computers Inc. * 243,500 3,926,438
-------------------------------------------------------------------------------
Xerox Corp. 33,200 3,892,700
-------------------------------------------------------------------------------
47,167,333
Paper:-4.1%
-------------------------------------------------------------------------------
Boise Cascade Corp. 110,300 4,467,150
-------------------------------------------------------------------------------
Chesapeake Corp. 127,900 3,980,887
-------------------------------------------------------------------------------
Stone Container Corp. * 210,400 4,471,000
-------------------------------------------------------------------------------
Westvaco Corp. 91,900 4,066,575
-------------------------------------------------------------------------------
16,985,612
Petroleum and Petroleum Related:-5.8%
-------------------------------------------------------------------------------
GATX 85,700 4,038,613
-------------------------------------------------------------------------------
Lyondell Petrochemical Company 170,000 4,356,250
-------------------------------------------------------------------------------
Oryx Energy Company * 275,200 3,784,000
-------------------------------------------------------------------------------
Phillips Petroleum Co. 124,600 4,158,525
-------------------------------------------------------------------------------
Smith International Inc. * 230,600 3,862,550
-------------------------------------------------------------------------------
Williams Companies, Inc. 113,000 3,940,875
-------------------------------------------------------------------------------
24,140,813
Printing and Publishing:-0.9%
-------------------------------------------------------------------------------
Banta Corporation 108,500 3,648,312
-------------------------------------------------------------------------------
Public Utilities:-6.7%
-------------------------------------------------------------------------------
Baltimore Gas & Electric Co. 152,200 3,805,000
-------------------------------------------------------------------------------
General Public Utilities Corp. 133,200 3,962,700
-------------------------------------------------------------------------------
Kansas City Power & Light Co. 174,500 3,991,688
-------------------------------------------------------------------------------
Northeast Utilities 170,700 3,840,750
-------------------------------------------------------------------------------
Ohio Edison Co. 192,900 4,364,363
-------------------------------------------------------------------------------
Rochester Gas & Electric Corp. 184,700 3,924,875
-------------------------------------------------------------------------------
SCE Corporation 235,400 4,031,225
-------------------------------------------------------------------------------
27,920,601
Railroads:-1.9%
-------------------------------------------------------------------------------
Burlington Northern Inc. 68,100 4,287,915
-------------------------------------------------------------------------------
Conrail Inc. 68,700 3,821,437
-------------------------------------------------------------------------------
8,109,352
Restraurant:-0.8%
-------------------------------------------------------------------------------
Sbarro Inc. 148,900 3,443,661
-------------------------------------------------------------------------------
Retail:-6.7%
-------------------------------------------------------------------------------
C M L Group Inc. 159,400 1,255,275
-------------------------------------------------------------------------------
Eckerd Corp. * 125,400 4,012,800
-------------------------------------------------------------------------------
Family Dollar Stores, Inc. 163,100 2,405,725
-------------------------------------------------------------------------------
Kroger Co.* 153,500 4,125,312
-------------------------------------------------------------------------------
Rite Aid Corp. 166,100 4,256,312
-------------------------------------------------------------------------------
Smith's Food & Drug Centers Inc. 190,500 3,762,375
-------------------------------------------------------------------------------
Staples Inc. * 140,500 4,065,648
-------------------------------------------------------------------------------
Waban Inc. * 275,900 4,104,012
-------------------------------------------------------------------------------
27,987,459
Savings and Loan:-1.0%
-------------------------------------------------------------------------------
First Chicago Corp. 67,400 4,035,575
-------------------------------------------------------------------------------
Shoes:-1.0%
-------------------------------------------------------------------------------
Nike, Inc. 47,700 4,006,800
-------------------------------------------------------------------------------
Soaps, Cleaner and Cosmetics:-2.1%
-------------------------------------------------------------------------------
Clorox Company 68,100 4,350,421
-------------------------------------------------------------------------------
International Flavors & Fragrances, Inc. 85,500 4,253,625
-------------------------------------------------------------------------------
8,604,046
Steel:-0.9%
-------------------------------------------------------------------------------
USX Steel Group Inc. 105,300 3,598,645
-------------------------------------------------------------------------------
Telecommunications:-1.7%
-------------------------------------------------------------------------------
Comsat Corporation 194,200 3,811,175
-------------------------------------------------------------------------------
Pacific Telesis Group 128,100 3,426,675
-------------------------------------------------------------------------------
7,237,850
Textiles-Apparel Manufacturing:-1.0%
-------------------------------------------------------------------------------
Springs Industries Inc. 107,800 4,015,550
-------------------------------------------------------------------------------
Market
Value
------
Total Common Stocks-94.8%
(Cost-$344,573,199) $395,429,280
-------------------------------------------------------------------------------
Par
Money Market Instruments: Amount
------
BellSouth Telecommunications
5.95%, 7/20/95 $ 1,300,000 1,295,488
-------------------------------------------------------------------------------
Corporate Asset Funding Co.
6.05%, 7/13/95 1,000,000 997,479
-------------------------------------------------------------------------------
Credit Suisse Financial
6.0%, 7/06/95 11,600,000 11,582,600
-------------------------------------------------------------------------------
Du Pont E I De Nemours & Co.
6.0%, 7/07/95 8,219,000 8,209,411
-------------------------------------------------------------------------------
General Electric Co.
6.1%, 7/05/95 380,000 380,000
-------------------------------------------------------------------------------
Prudential Funding Inc.
5.94%, 7/20/95 6,000,000 5,991,090
-------------------------------------------------------------------------------
U.S. Treasury Bill
0.0%, 5/02/96 + 750,000 704,993
-------------------------------------------------------------------------------
Total Money Market Instruments:-7.0%
(Cost-$29,161,061) 29,161,061
-------------------------------------------------------------------------------
Total Investments-101.8%
(Cost-$373,735,260) 424,590,341
-------------------------------------------------------------------------------
Liability for Stock Call Options Number
Written: of Shares
-----------
Armstrong World Industries Inc.
Expiring 7/22/95, strike price 45 60,000 (322,500)
-------------------------------------------------------------------------------
Beneficial Corp.
Expiring 7/22/95, strike price 40 51,400 (215,238)
-------------------------------------------------------------------------------
Burlington Northern Inc.
Expiring 7/22/95, strike price 60 66,000 (247,500)
-------------------------------------------------------------------------------
Chase Manhattan Corp.
Expiring 7/22/95, strike price 40 25,200 (177,975)
-------------------------------------------------------------------------------
Clorox Company
Expiring 7/22/95, strike price 55 20,000 (207,500)
-------------------------------------------------------------------------------
Comdisco Inc.
Expiring 7/22/95, strike price 23 80,000 (640,000)
-------------------------------------------------------------------------------
General Public Utilities Corp.
Expiring 7/22/95, strike price 30 35,000 (17,500)
-------------------------------------------------------------------------------
Micron Technology Inc.
Expiring 7/22/95, strike price 43 40,000 (502,500)
-------------------------------------------------------------------------------
Sbarro Inc.
Expiring 7/22/95, strike price 20 15,000 (55,313)
-------------------------------------------------------------------------------
USX Steel Group Inc.
Expiring 7/22/95, strike price 30 45,000 (199,687)
-------------------------------------------------------------------------------
Total Liability for Stock Call
Options Written:-(0.6%)
(Premium Received - $2,223,883) (2,585,713)
-------------------------------------------------------------------------------
Other Assets Under Liabilities-(1.2%) (5,000,189)
-------------------------------------------------------------------------------
Net Assets-100.0%
(equivalent to $25.027 per share
based on 16,661,883 shares
issued and outstanding) $417,004,439
===============================================================================
* Non-income producing.
+ Pledged as collateral for financial futures contracts.
** Par amounts for foreign debt are expressed in local currency.
See accompanying notes to financial statements.
29
<PAGE>
STATEMENT OF OPERATIONS - Unaudited
Six Months Ended June 30, 1995
<TABLE>
<CAPTION>
Lincoln Lincoln Lincoln Lincoln Lincoln
National Lincoln National National National National
Aggressive National Capital Equity Global Asset Growth
Growth Bond Appreciation Income Allocation and Income
Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc.
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Interest $209,960 $8,106,889 $583,374 $382,833 $3,205,178 $2,312,282
-------------------------------------------------------------------------------------------------------------------------
Dividends 242,508 - 392,699 1,638,659 1,623,035 18,134,088
-------------------------------------------------------------------------------------------------------------------------
Total investment income 452,468 8,106,889 976,073 2,021,492 4,828,213 20,446,370
-------------------------------------------------------------------------------------------------------------------------
Expenses:
Management fees 281,964 503,893 281,397 528,469 778,565 2,245,055
-------------------------------------------------------------------------------------------------------------------------
Dividend tax 3,837 - 12,950 18,807 86,172 -
-------------------------------------------------------------------------------------------------------------------------
Professional fees - - - - - -
-------------------------------------------------------------------------------------------------------------------------
Custodial fees 40,130 - 48,091 60,338 166,989 -
-------------------------------------------------------------------------------------------------------------------------
Directors fees 1,500 1,500 1,500 1,500 1,500 1,500
-------------------------------------------------------------------------------------------------------------------------
Other fees 325 325 325 325 325 325
-------------------------------------------------------------------------------------------------------------------------
Other 46,020 20,489 42,982 26,869 (41,523) 88,580
-------------------------------------------------------------------------------------------------------------------------
Total expenses 373,776 526,207 387,245 636,308 992,028 2,335,460
-------------------------------------------------------------------------------------------------------------------------
Net investment income 78,692 7,580,682 588,828 1,385,184 3,836,185 18,110,910
-------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on
investments:
Net realized gain
(loss) on:
Investment transactions 2,028,654 2,123,321 1,362,524 1,293,493 3,677,223 34,664,505
-------------------------------------------------------------------------------------------------------------------------
Foreign currency transactions (7) - (8,149) 8 1,521 -
-------------------------------------------------------------------------------------------------------------------------
Options written - - - - - -
-------------------------------------------------------------------------------------------------------------------------
Net realized
gain (loss) on
investments 2,028,647 2,123,321 1,354,375 1,293,501 3,678,744 34,664,505
-------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation or
depreciation on:
Investments 9,883,339 14,002,702 6,570,593 15,384,355 17,411,254 201,891,132
-------------------------------------------------------------------------------------------------------------------------
Translation of
assets and
liabilities in
foreign
currencies - - 65,941 (155) (1,111,189) -
-------------------------------------------------------------------------------------------------------------------------
Options written - - - - 5,093 -
-------------------------------------------------------------------------------------------------------------------------
Net change in
unrealized
appreciation
or depreciation
on investments 9,883,339 14,002,702 6,636,534 15,384,200 16,305,158 201,891,132
-------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 11,911,986 16,126,023 7,990,909 16,677,701 19,983,902 236,555,637
-------------------------------------------------------------------------------------------------------------------------
Net increase(decrease) in net assets
resulting from operations $11,990,678 $23,706,705 $8,579,737 $18,062,885 $23,820,087 $254,666,547
=========================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS - Unaudited (Continued)
Six Months Ended June 30, 1995
<TABLE>
<CAPTION>
Lincoln Lincoln Lincoln
Lincoln Lincoln National National National
National National Money Social Special
International Managed Market Awareness Opportunities
Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc.
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income:
Interest $177,665 $8,741,981 $2,514,290 $564,056 $676,932
--------------------------------------------------------------------------------------------------------------------------
Dividends 3,569,670 3,556,557 - 2,183,440 4,824,743
--------------------------------------------------------------------------------------------------------------------------
Total investment income 3,747,335 12,298,538 2,514,290 2,747,496 5,501,675
--------------------------------------------------------------------------------------------------------------------------
Expenses:
Management fees 1,315,649 998,473 193,747 448,784 811,084
--------------------------------------------------------------------------------------------------------------------------
Dividend tax 478,079 - - - -
--------------------------------------------------------------------------------------------------------------------------
Professional fees - - - - -
--------------------------------------------------------------------------------------------------------------------------
Custodial fees 248,664 - - - -
--------------------------------------------------------------------------------------------------------------------------
Directors fees 1,500 1,500 1,500 1,500 1,500
--------------------------------------------------------------------------------------------------------------------------
Other fees 325 325 325 325 325
--------------------------------------------------------------------------------------------------------------------------
Other (131,463) 38,595 13,032 28,953 38,934
--------------------------------------------------------------------------------------------------------------------------
Total expenses 1,912,754 1,038,893 208,604 479,562 851,843
--------------------------------------------------------------------------------------------------------------------------
Net investment income 1,834,581 11,259,645 2,305,686 2,267,934 4,649,832
--------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain(loss) on:
Investment transactions (5,750,914) 9,207,676 - 7,754,987 14,394,227
--------------------------------------------------------------------------------------------------------------------------
Foreign currency transctions (220,068) - - - -
--------------------------------------------------------------------------------------------------------------------------
Options written - - - - (848,799)
--------------------------------------------------------------------------------------------------------------------------
Net realized gain(loss) on
investments (5,970,982) 9,207,676 - 7,754,987 13,545,428
--------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
or depreciation on:
Investments 12,956,391 53,019,636 - 23,445,621 47,668,716
--------------------------------------------------------------------------------------------------------------------------
Translation of assets and
liabilities in foreign
currencies 47,436 - - - -
--------------------------------------------------------------------------------------------------------------------------
Options written - - - - (341,154)
--------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation or depreciation
on investments 13,003,827 53,019,636 - 23,445,621 47,327,562
--------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 7,032,845 62,227,312 - 31,200,608 60,872,990
--------------------------------------------------------------------------------------------------------------------------
Net increase(decrease) in net assets
resulting from operations $8,867,426 $73,486,957 $2,305,686 $33,468,542 $65,522,822
==========================================================================================================================
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS - Unaudited
Six Months Ended June 30, 1994 and 1995
<TABLE>
<CAPTION>
Lincoln Lincoln Lincoln Lincoln Lincoln
National Lincoln National National National National
Aggressive National Capital Equity Global Asset Growth
Growth Bond Appreciation Income Allocation and Income
Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc.
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Assets at January 1, 1994 $110,000 $226,149,503 $110,000 $110,000 $153,499,616 $1,034,105,477
-----------------------------------------------------------------------------------------------------------------------------
Changes from operations:
Net investment income 1,892 6,597,854 79,682 185,543 2,521,582 14,682,737
-----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss)
on investments (1,523,187) (4,510,446) (236,694) 88,735 671,181 41,981,099
-----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation or
depreciation on
investments (3,017,083) (13,218,194) (399,412) 146,871 (10,658,414) (90,040,847)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
operations (4,538,378) (11,130,786) (556,424) 421,149 (7,465,651) (33,377,011)
-----------------------------------------------------------------------------------------------------------------------------
Dividends to shareholder from:
Net investment income (1,892) (6,597,854) (79,682) (185,543) (2,521,582) (14,682,737)
-----------------------------------------------------------------------------------------------------------------------------
Net realized gain on
investments - (9,456,561) - - (10,629,009) (45,931,842)
-----------------------------------------------------------------------------------------------------------------------------
Total dividends to
shareholder (1,892) (16,054,415) (79,682) (185,543) (13,150,591) (60,614,579)
-----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from capital share
transactions 35,962,861 10,610,597 28,213,078 35,271,922 51,668,620 137,186,311
-----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets 31,422,591 (16,574,604) 27,576,972 35,507,528 31,052,378 43,194,721
-----------------------------------------------------------------------------------------------------------------------------
Net Assets at June 30, 1994 $31,532,591 $209,574,899 $27,686,972 $35,617,528 $184,551,994 $1,077,300,198
=============================================================================================================================
Net Assets at January 1, 1995 $60,697,261 $195,009,766 $52,903,888 $78,861,187 $195,696,899 $1,161,324,307
Changes from operations:
Net investment income 78,692 7,580,682 588,828 1,385,184 3,836,185 18,110,910
-----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss)
on investments 2,028,647 2,123,321 1,354,375 1,293,501 3,678,744 34,664,505
-----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation or
depreciation on
investments 9,883,339 14,002,702 6,636,534 15,384,200 16,305,158 201,891,132
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
operations 11,990,678 23,706,705 8,579,737 18,062,885 23,820,087 254,666,547
-----------------------------------------------------------------------------------------------------------------------------
Dividends to shareholder from:
Net investment income (78,692) (7,580,682) (588,828) (1,385,184) (3,836,185) (18,110,910)
-----------------------------------------------------------------------------------------------------------------------------
Net realized gain on
investments - - - (580,264) - (69,061,295)
-----------------------------------------------------------------------------------------------------------------------------
Total dividends to
shareholder (78,692) (7,580,682) (588,828) (1,965,448) (3,836,185) (87,172,205)
-----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from capital share
transactions 21,233,132 17,481,449 29,183,716 54,059,040 7,380,346 165,804,088
-----------------------------------------------------------------------------------------------------------------------------
Total increase in net
assets 33,145,118 33,607,472 37,174,625 70,156,477 27,364,248 333,298,430
-----------------------------------------------------------------------------------------------------------------------------
Net Assets at June 30, 1995 $93,842,379 $228,617,238 $90,078,513 $149,017,664 $223,061,147 $1,494,622,737
=============================================================================================================================
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS - Unaudited (Continued)
Six Months Ended June 30, 1994 and 1995
<TABLE>
<CAPTION>
Lincoln Lincoln Lincoln
Lincoln Lincoln National National National
National National Money Social Special
International Managed Market Awareness Opportunities
Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc. Fund, Inc.
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets at January 1, 1994 $161,469,998 $445,039,996 $81,041,767 $137,606,415 $273,997,784
------------------------------------------------------------------------------------------------------------------------------
Changes from operations:
Net investment income 739,470 9,733,894 1,373,640 1,440,283 3,382,145
------------------------------------------------------------------------------------------------------------------------------
Net realized gain(loss) on investments 361,469 2,078,926 - 3,299,345 9,512,228
------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
or depreciation on investments 669,255 (30,916,026) - (7,203,979) (27,597,292)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 1,770,194 (19,103,206) 1,373,640 (2,464,351) (14,702,919)
------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholder from:
Net investment income (739,470) (9,733,894) (1,373,640) (1,440,283) (3,382,145)
------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments - (17,841,259) - (7,339,542) (18,072,011)
------------------------------------------------------------------------------------------------------------------------------
Total dividends to shareholder (739,470) (27,575,153) (1,373,640) (8,779,825) (21,454,156)
------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from capital share transactions 95,307,609 49,202,594 5,778,452 24,065,169 48,197,925
------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 96,338,333 2,524,235 5,778,452 12,820,993 12,040,850
------------------------------------------------------------------------------------------------------------------------------
Net Assets at June 30, 1994 $257,808,331 $447,564,231 $86,820,219 $150,427,408 $286,038,634
==============================================================================================================================
Net Assets at January 1, 1995 $316,349,905 $442,139,584 $77,177,437 $163,514,159 $318,417,174
Changes from operations:
Net investment income 1,834,581 11,259,645 2,305,686 2,267,934 4,649,832
------------------------------------------------------------------------------------------------------------------------------
Net realized gain(loss) on investments (5,970,982) 9,207,676 - 7,754,987 13,545,428
------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
or depreciation on investments 13,003,827 53,019,636 - 23,445,621 47,327,562
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 8,867,426 73,486,957 2,305,686 33,468,542 65,522,822
------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholder from:
Net investment income (1,834,581) (11,259,645) (2,305,686) (2,267,934) (4,649,832)
------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments (14,698,525) (718,100) - (6,175,723) (15,004,876)
------------------------------------------------------------------------------------------------------------------------------
Total dividends to shareholder (16,533,106) (11,977,745) (2,305,686) (8,443,657) (19,654,708)
------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from capital share transactions 24,094,439 19,837,346 7,568,577 25,140,492 52,719,151
------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 16,428,759 81,346,558 7,568,577 50,165,377 98,587,265
------------------------------------------------------------------------------------------------------------------------------
Net Assets at June 30, 1995 $332,778,664 $523,486,142 $84,746,014 $213,679,536 $417,004,439
==============================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
June 30, 1995
1. SIGNIFICANT ACCOUNTING POLICIES
THE FUNDS: Lincoln National Aggressive Growth Fund, Inc., Lincoln National Bond
Fund, Inc., Lincoln National Capital Appreciation Fund, Inc., Lincoln National
Equity Income Fund, Inc., Lincoln National Global Asset Allocation Fund, Inc.,
Lincoln National Growth and Income Fund, Inc., Lincoln National International
Fund, Inc., Lincoln National Managed Fund, Inc., Lincoln National Money Market
Fund, Inc., and Lincoln National Social Awareness Fund, Inc. are registered as
open-end, diversified management investment companies and Lincoln National
Special Opportunities Fund, Inc. is registered as an open-end, non-diversified
management investment company under the Investment Company Act of 1940, as
amended. The Funds' shares are sold only to The Lincoln National Life Insurance
Company (the Company) for allocation to its Variable Annuity Account C, which
was established for the purpose of funding variable annuity contracts, and to
its Flexible Premium Variable Life Accounts D, G, and K, which were established
for the purpose of funding variable universal life contracts.
INVESTMENT VALUATION: Investments are stated at value. Portfolio securities
which are traded on stock exchanges are valued at the last reported sale price
on the exchange or market where primarily traded or listed or, in the absence of
recent sales, at the mean between the last reported bid and asked prices. Long-
term debt investments are valued at their bid quotations. The Funds hedge
certain portions of their exposure to fluctuations in interest, market, and
foreign exchange risks by entering into derivative transactions. These hedges
include options, financial futures, and forward foreign currency contracts.
Options traded on exchanges are valued at the last bid price for options
purchased and the last sale price for options written. Options traded in the
over-the-counter market are valued at the last asked price for options written
and the last bid price for options purchased. Financial futures are valued at
the settlement price established each day by the board of trade or exchange on
which they are traded. Forward foreign currency contracts are valued at the
forward exchange rates prevailing on the day of valuation. Other securities and
assets for which market quotations are not readily available are valued at fair
value as determined in good faith by or under the direction of the Funds' Board
of Directors. Money market instruments in securities are stated at amortized
cost, which approximates market value.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on the trade date. Dividend income is recorded on the ex-dividend
date and interest income is recorded on the accrual basis. Interest income
includes premium and discount amortization on money market instruments and
mortgage-backed securities; it also includes original issue and market discount
amortization on long-term debt investments. Realized gains or losses from
investment transactions are reported on an identified cost basis. Gains and
losses on premiums from expired options are recognized on the date of
expiration.
FOREIGN CURRENCY TRANSACTIONS: The books and records of the Funds are maintained
in U.S. dollars. All assets and liabilities denominated in a foreign currency
are translated into U.S. dollars based upon foreign exchange rates prevailing at
the end of the period. Income and expenses and purchases and sales of
investments are translated into U.S. dollars at the rate of exchange prevailing
on the respective dates of such transactions. The effects of changes in foreign
currency exchange rates on investments in securities are not segregated from the
effects of changes in market prices of those securities, but are included with
the net realized and unrealized gain or loss on investment in securities.
Reported net realized gains and losses on foreign currency transactions arise
from sales and maturities of forward foreign currency contracts, currency gains
and losses between the trade and settlement dates on securities transactions,
and the differences between the amounts of dividends, interest, and foreign
withholding taxes recorded on the Funds' books and the U.S. dollar equivalent of
the amounts actually received or paid. Net change in unrealized appreciation or
depreciation on translation of assets and liability in foreign currencies arise
from changes in the value of other assets and liabilities at the end of the
period resulting from changes in the exchange rates.
TAXES: Each Fund has complied with the special provisions of the Internal
Revenue Code for regulated investment companies. As such, each Fund is not
subject to U.S. federal income taxes to the extent that it distributes all of
its taxable income for its fiscal year.
Withholding taxes on foreign interest have been provided for in accordance with
the applicable country's tax rates.
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS - UNAUDITED (CONTINUED)
2. OTHER ASSETS OVER (UNDER) LIABILITIES
The statement of net assets accounts "Other Assets Over(Under) Liabilities" at
June 30, 1995 consisted of the following assets (liabilities):
<TABLE>
<CAPTION>
LINCOLN LINCOLN LINCOLN LINCOLN LINCOLN
NATIONAL LINCOLN NATIONAL NATIONAL NATIONAL NATIONAL
AGGRESSIVE NATIONAL CAPITAL EQUITY GLOBAL ASSET GROWTH
GROWTH BOND APPRECIATION INCOME ALLOCATION AND INCOME
FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC.
<S> <C> <C> <C> <C> <C> <C>
Foreign currency $ - $ - $ 75,659 $ 180,142 $ 2,621,498 $ -
-------------------------------------------------------------------------------------------------------------------------
Receivable for dividends earned 65,272 - 91,454 442,078 408,785 3,585,149
-------------------------------------------------------------------------------------------------------------------------
Receivable for interest earned 1,570 4,377,612 - 56,570 1,284,982 244,798
-------------------------------------------------------------------------------------------------------------------------
Receivable for securities sold 589,935 - 13,149,408 1,048,039 68,493,173 3,265,719
-------------------------------------------------------------------------------------------------------------------------
Dividends declared and unpaid (78,692) (7,580,682) (588,828) (1,385,184) (3,836,185) (18,110,910)
-------------------------------------------------------------------------------------------------------------------------
Payable for securities
purchased (1,839,393) - (9,601,086) (1,528,052) (70,445,031) (3,150,436)
-------------------------------------------------------------------------------------------------------------------------
Management fees payable (128,483) (88,397) (123,075) (252,160) (273,950) (408,755)
-------------------------------------------------------------------------------------------------------------------------
Other, net (77,508) 647,368 (32,245) (227,483) (1,239,664) (522,915)
-------------------------------------------------------------------------------------------------------------------------
$(1,467,299) $ (2,644,099) $ 2,971,287 $(1,666,050) $ (2,986,392) $(15,097,350)
======================================================================================
</TABLE>
<TABLE>
<CAPTION>
LINCOLN LINCOLN LINCOLN
LINCOLN LINCOLN NATIONAL NATIONAL NATIONAL
NATIONAL NATIONAL MONEY SOCIAL SPECIAL
INTERNATIONAL MANAGED MARKET AWARENESS OPPORTUNITIES
FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC.
<S> <C> <C> <C> <C> <C>
Foreign currency $18,250,982 $ - $ - $ - $ -
---------------------------------------------------------------------------------------------------------
Receivable for dividends earned 807,727 745,672 - 450,372 1,027,680
---------------------------------------------------------------------------------------------------------
Receivable for interest earned 461 5,810,685 927,214 25,688 20,789
---------------------------------------------------------------------------------------------------------
Receivable for securities sold 3,611,255 (115,955) - 1,688,226 183,994
---------------------------------------------------------------------------------------------------------
Dividends declared and unpaid (1,834,581) (11,259,645) (2,305,686) (2,267,934) (4,649,832)
---------------------------------------------------------------------------------------------------------
Payable for securities
purchased (5,540,552) (204,350) - (663,970) (919,016)
---------------------------------------------------------------------------------------------------------
Management fees payable (495,298) (174,458) (33,093) (82,405) (147,287)
---------------------------------------------------------------------------------------------------------
Other, net 263,154 (499,611) (10,807) 264,542 (516,517)
---------------------------------------------------------------------------------------------------------
$15,063,148 $(5,697,662) $ (1,422,372) $ (585,481) $(5,000,189)
======================================================================
</TABLE>
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Lincoln National Investment Management Company (the Advisor) manages the Funds'
investment portfolios, maintains their accounts and records, and furnishes the
services of individuals to perform executive and administrative functions of the
Funds. In return for these services, the Advisor receives a management fee at
an annual rate of .48% of the first $200,000,000 of the average daily net asset
value of the Funds, .40% of the next $200,000,000, and .30% of the average daily
net asset value of the Funds in excess of $400,000,000 for all the Funds except
for the Lincoln National Global Asset Allocation Fund, Inc. which has management
fee annual rates of .75%, .70%, and .68%, respectively, the Lincoln National
International Fund, Inc. which has management fee annual rates of .90%, .75%,
and .60%, respectively, and the Lincoln National Aggressive Growth Fund, Inc.
which has management fee annual rates of .75%, .70%, and .65%, respectively. The
Lincoln National Capital Appreciation Fund, Inc. and the Lincoln National Equity
Income Fund, Inc. have management fees of .80% and .95%, respectively, with no
breakpoints. If the aggregate annual expenses of the Funds, including the
management fee, but excluding taxes, interest, brokerage commissions relating to
the purchase or sale of portfolio securities and extraordinary non-recurring
expenses, exceeds 1 1/2% of the average daily net asset value of the Fund, the
Advisor will reimburse the Funds in the amount of such excess. No reimbursement
was due for the year ended June 30, 1995.
Certain officers and directors of the Funds are also officers or directors of
the Company. The compensation of unaffiliated directors of the Funds is borne
by the Funds.
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS - UNAUDITED (CONTINUED)
4. ANALYSIS OF NET ASSETS
The analysis of net assets at June 30, 1995 consisted of the following:
<TABLE>
<CAPTION>
LINCOLN LINCOLN LINCOLN LINCOLN LINCOLN
NATIONAL LINCOLN NATIONAL NATIONAL NATIONAL NATIONAL
AGGRESSIVE NATIONAL CAPITAL EQUITY GLOBAL ASSET GROWTH
GROWTH BOND APPRECIATION INCOME ALLOCATION AND INCOME
FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC.
<S> <C> <C> <C> <C> <C> <C>
Common Stock, par value
$.01 per share ** $ 89,073 $ 193,857 $ 79,528 $ 124,643 $ 182,084 $ 568,820
---------------------------------------------------------------------------------------------------------------------------
Paid-in capital in excess
of par value of shares
issued 83,129,583 228,823,459 81,674,803 132,626,397 200,575,025 1,212,633,039
---------------------------------------------------------------------------------------------------------------------------
Undistributed net realized
gain (loss) on
investments (1,728,926) (7,841,675) 1,160,917 1,293,501 2,537,288 34,664,506
---------------------------------------------------------------------------------------------------------------------------
Net unrealized
appreciation or
depreciation on
investments 12,352,649 7,441,597 7,163,265 14,973,123 19,766,750 246,756,372
---------------------------------------------------------------------------------------------------------------------------
$ 93,842,379 $228,617,238 $ 90,078,513 $149,017,664 $223,061,147 $1,494,622,737
=============================================================================================
</TABLE>
<TABLE>
<CAPTION>
LINCOLN LINCOLN LINCOLN
LINCOLN LINCOLN NATIONAL NATIONAL NATIONAL
NATIONAL NATIONAL MONEY SOCIAL SPECIAL
INTERNATIONAL MANAGED MARKET AWARENESS OPPORTUNITIES
FUND, INC. FUND, INC. FUND, INC. FUND, INC. FUND, INC.
<S> <C> <C> <C> <C> <C>
Common Stock, par value
$.01 per share ** $ 262,986 $ 360,795 $ 84,746 $ 112,547 $ 166,619
---------------------------------------------------------------------------------------------------------
Paid-in capital in excess
of par value of shares
issued 312,271,424 459,172,955 84,661,268 177,467,156 352,600,881
---------------------------------------------------------------------------------------------------------
Undistributed net realized
gain (loss) on
investments (5,970,981) 9,207,676 - 7,754,988 13,545,427
---------------------------------------------------------------------------------------------------------
Net unrealized
appreciation or
depreciation on
investments 26,215,235 54,744,716 - 28,344,845 50,691,512
---------------------------------------------------------------------------------------------------------
$332,778,664 $523,486,142 $ 84,746,014 $213,679,536 $417,004,439
===========================================================================
</TABLE>
** Each Fund has 50,000,000 authorized shares except for the Lincoln
National Growth and Income Fund, Inc. which has 100,000,000.
5. INVESTMENTS
The cost of investments for federal income tax purposes is the same as for book
purposes. The aggregate cost of investments purchased, the aggregate proceeds
from investments sold, the aggregate gross unrealized appreciation, the
aggregate gross unrealized depreciation and the net unrealized appreciation
(depreciation) at June 30, 1995 are as follows:
<TABLE>
<CAPTION>
NET
AGGREGATE AGGREGATE GROSS GROSS UNREALIZED
COST OF PROCEEDS UNREALIZED UNREALIZED APPRECIATION
PURCHASES FROM SALES APPRECIATION DEPRECIATION (DEPRECIATION)
----------- ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
Lincoln National
Aggressive Growth Fund,
Inc. $ 55,240,456 $ 33,574,159 $ 12,975,975 $ (623,326) $ 12,352,649
Lincoln National Bond
Fund, Inc. 153,610,129 144,376,821 8,711,848 (1,270,251) 7,441,597
Lincoln National Capital
Appreciation Fund, Inc. 93,509,592 48,651,985 7,295,513 (132,248) 7,163,265
Lincoln National Equity
Income Fund, Inc. 1,337,083 18,177,845 15,684,210 (711,087) 14,973,123
Lincoln National Global
Asset Allocation Fund, Inc. 149,651,853 151,210,116 24,608,202 (4,841,452) 19,766,750
Lincoln National Growth
and Income Fund, Inc. 432,622,281 367,280,613 260,292,893 (13,536,521) 246,756,372
Lincoln National
International Fund, Inc. 103,030,036 97,493,294 37,865,664 (11,650,429) 26,215,235
Lincoln National Managed
Fund, Inc. 277,150,146 270,217,770 59,501,568 (4,756,852) 54,744,716
Lincoln National Social
Awareness Fund, Inc. 54,949,131 42,793,786 33,411,961 (5,067,116) 28,344,845
Lincoln National Special
Opportunities Fund, Inc. 194,864,383 163,944,217 61,506,652 (10,815,140) 50,691,512
</TABLE>
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS - UNAUDITED (CONTINUED)
6. SUPPLEMENTAL FINANCIAL INSTRUMENT INFORMATION
OPTIONS: The Funds purchase or write options which are exchange traded to hedge
fluctuation risks in the price of certain securities. When the Funds write a
call or put option, an amount equal to the premium received is reflected as a
liability. The amount of the liability is subsequently "marked-to-market" to
reflect the current market value of the option written. The premium paid by the
Funds for the purchase of a call or put option is recorded as an investment and
subsequently "marked-to-market" to reflect the current market value of the
option purchased. The Funds are subject to the risk of an imperfect correlation
between movement in the price of the instrument and the price of the underlying
security or transaction. Risks may also arise due to illiquid secondary markets
for the instruments. Written call option activity for 1995 is summarized as
follows:
<TABLE>
<CAPTION>
LINCOLN NATIONAL GLOBAL
ASSET ALLOCATION FUND, INC.
----------------------------------------
PAR PREMIUMS
AMOUNT RECEIVED
----------------------------------------
<S> <C> <C>
Options outstanding at January 1, 1995 $ 92,600 $ 5,556
Options written 0 0
Options expired 0 0
Options closed (92,600) (5,556)
-------- -------
Options outstanding at June 30, 1995 $ 0 0
Unrealized appreciation at June 30, 1995 0
-------
Market value of options written at June 30, 1995 $ 0
-------
</TABLE>
<TABLE>
<CAPTION>
LINCOLN NATIONAL SPECIAL
OPPORTUNITIES FUND, INC.
---------------------------------------
NUMBER OF PREMIUMS
SHARES RECEIVED
---------------------------------------
<S> <C> <C>
Options outstanding at January 1, 1995 125,400 $ 204,656
Options written 2,010,500 7,773,092
Options exercised (140,700) (651,982)
Options expired (94,800) (184,575)
Options closed (1,462,800) (4,917,308)
---------------------------------------
Options outstanding at June 30, 1995 437,600 2,223,883
---------- ----------
Unrealized depreciation at June 30, 1995 361,830
----------
Market value of options written at June 30, 1995 $2,585,713
----------
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS: The Funds may purchase or sell forward
foreign currency contracts to hedge risks of fluctuations in specific
transactions or portfolio positions. Forward foreign currency contracts
obligate the Funds to take or deliver a financial instrument of foreign currency
at a future date at a specified price. The unrealized gain or loss on the
contracts are reflected in the accompanying financial statements. The Funds are
subject to the credit risks that the counterparties to these contracts will fail
to perform; although this risk is minimized by purchasing such agreements from
financial institutions with long standing, superior performance records. In
addition, the Funds are subject to the market risks associated with
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar; however, such changes in the value generally are offset by changes in
the value of the items being hedged by such contracts. The sale of forward
foreign currency contracts that were open at June 30, 1995 were as follows:
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS - UNAUDITED (CONTINUED)
<TABLE>
<CAPTION>
FOREIGN AGGREGATE UNREALIZED
FUND CURRENCY FACE VALUE SETTLEMENT DATE(S) GAIN (LOSS)
--------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
Capital 4,155,000 Deutschemark $ 3,006,987 July 1995 $ (915)
Appreciation 10,500,000 Swedish Krona 1,428,856 July, November 1995 (2,022)
1,640,000 Swiss Franc 1,450,169 November 1995 15,817
------------
$ 12,880
============
Global Asset 3,980,000 Australian Dollar 2,841,503 September 1995 $ (7,657)
Allocation 700,000 Canadian Dollar 510,725 September 1995 (1,962)
9,300,000 Danish Krone 1,638,478 September 1995 (80,870)
11,600,000 Deutschemark 8,270,153 August, September 1995 (48,650)
21,245,000 French Franc 4,246,387 August, September 1995 (124,286)
2,860,000 Great Britain Pound 4,522,567 August, September 1995 (24,663)
2,000,000,000 Lira 1,145,068 August, September 1995 (62,552)
974,712,180 Japanese Yen 10,887,511 July, August, September 1995 (774,080)
4,300,000 Netherlands Guilder 2,715,682 August, September 1995 (54,690)
80,000,000 Spanish Peseta 655,845 September 1995 415
4,400,000 Swedish Krona 591,420 September 1995 (9,784)
775,000 Swiss Franc 640,760 August 1995 (35,228)
------------
$(1,224,007)
============
</TABLE>
FINANCIAL FUTURES CONTRACTS: The Funds may purchase or sell financial futures
contracts, which are exchange traded, to hedge fluctuation risks of adverse
changes in exchange markets or interest rates. Financial futures contracts
obligate the Funds to take delivery or deliver a financial instrument at a
future date at a specified price. The Funds deposit with its custodian a
specified amount of cash or eligible securities called "initial margin" or
"variation margin". The market value of investments pledged to cover margin
requirements for open positions at June 30, 1995 was $704,993 for the Lincoln
National Special Opportunities Fund, Inc., and $681,819 for Lincoln National
Global Asset Allocation Fund, Inc. The unrealized gain or loss on the contracts
are reflected in the accompanying financial statements. The Funds are subject
to the market risks of unexpected changes in the underlying markets and interest
rates; however, such changes in the value generally are offset by changes in the
value of the items being hedged by such contracts. Purchased financial futures
contracts open at June 30, 1995 were as follows:
<TABLE>
<CAPTION>
UNDERLYING EXPIRATION UNREALIZED
FUND CONTRACTS FACE AMOUNT DATE GAIN
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Special Opportunities 85 S&P 500 contracts $ 8,283,615 September 1995 $ 197,260
Global Asset 132 5 year U.S. Treasury contracts 14,124,000 September 1995 (1,424,876)
Allocation Fund 82 Financial Times contracts 68,429 September 1995 213,015
-----------
$(1,211,861)
</TABLE>
INDEXED SECURITIES: The Funds may invest in indexed securities whose value is
linked either directly or inversely to changes in foreign currencies, interest
rates, commodities, indices, or other reference instruments. Indexed securities
may be more volatile than the reference instrument itself, but any loss is
limited to the amount of the original investment.
REPURCHASE AGREEMENTS: The Funds, through their respective custodians, receive
delivery of the underlying securities, whose market value is required to be at
least 102% of the repurchase price. The advisor is responsible for determining
that the value of the collateral is at least equal to the repurchase price.
Repurchase agreements are subject to the risk of the default or insolvency of
the counterparty.
7. CONCENTRATION OF CREDIT RISK
The Lincoln National Money Market Fund, Inc. had investments in securities
issued by banks, including foreign banks, foreign branches of domestic banks,
and other financial institutions of $34,638,448 at June 30, 1995 (40.1% of net
assets). The ability of these entities to meet their obligations may be
affected by economic conditions related to the industry.
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS - UNAUDITED (CONTINUED)
Lincoln National Capital Appreciation Fund, Inc., Lincoln National Equity Income
Fund, Inc., Lincoln National Global Asset Allocation Fund, Inc., and Lincoln
National International Fund, Inc., invest in foreign securities. As a result,
there may be additional risks, such as the investments being subject to
restrictions as to repatriation of cash back to the United States and to
political or economic uncertainties. None of these Funds had investments in
excess of 4% in any individual foreign country except the Lincoln National
International Fund, Inc.
Distribution of investments for the Lincoln National International Fund, Inc. by
country of issue, as a percentage of total value of investment in securities,
consisted of the following at June 30, 1995:
<TABLE>
<CAPTION>
<S> <C>
Japan............................................................ 27.5%
France........................................................... 10.2
Netherlands...................................................... 9.6
Great Britain.................................................... 9.0
Germany.......................................................... 7.9
Sweden........................................................... 5.9
Switzerland...................................................... 5.2
Hong Kong........................................................ 4.5
Malaysia......................................................... 3.3
Others (individually less than 3%)............................... 16.9
-----
100.0%
=====
</TABLE>
8. SUMMARY OF CHANGES FROM CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SHARES ISSUED UPON NET INCREASE (DECREASE)
CAPITAL REINVESTMENT OF CAPITAL SHARES RESULTING FROM CAPITAL
SHARES SOLD DIVIDENDS REDEEMED SHARE TRANSACTIONS
---------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- ----------- ---------- ------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended June 30,
1994:
Lincoln National
Aggressive Growth Fund,
Inc. 3,784,294 $35,996,648 - $ - (3,803) $ (33,787) 3,780,491 $ 35,962,861
Lincoln National Bond
Fund, Inc. 498,329 5,788,825 1,738,842 21,824,702 (1,415,926) (17,002,930) 821,245 10,610,597
Lincoln National Capital
Appreciation Fund, Inc. 2,803,040 28,215,478 - - (239) (2,400) 2,802,801 28,213,078
Lincoln National Equity
Income Fund, Inc. 3,495,473 35,274,338 - - (240) (2,416) 3,495,233 35,271,922
Lincoln National Global
Asset Allocation Fund,
Inc. 3,278,695 38,483,065 1,187,851 14,293,180 (96,481) (1,107,625) 4,370,065 51,668,620
Lincoln National Growth
and Income Fund, Inc. 3,325,648 78,867,606 2,858,034 69,491,281 (480,372) (11,172,576) 5,703,310 137,186,311
Lincoln National
International Fund, Inc. 7,652,146 98,992,475 6,025 77,392 (293,076) (3,762,258) 7,365,095 95,307,609
Lincoln National Managed
Fund, Inc. 1,499,837 20,222,486 2,489,917 34,885,203 (447,936) (5,905,095) 3,541,818 49,202,594
Lincoln National Money
Market Fund, Inc. 4,519,498 45,194,981 257,051 2,570,513 (4,198,704) (41,987,042) 577,845 5,778,452
Lincoln National Social
Awareness Fund, Inc. 1,014,490 17,324,338 552,266 9,491,031 (162,309) (2,750,200) 1,404,447 24,065,169
Lincoln National Special
Opportunities Fund, Inc. 2,453,096 55,990,532 983,330 23,219,317 (1,381,144) (31,011,924) 2,055,282 48,197,925
Six Months Ended June 30, 1995:
Lincoln National Aggressive
Growth Fund, Inc. 2,361,805 22,801,299 7,077 65,795 (170,043) (1,633,962) 2,198,839 21,233,132
Lincoln National Bond Fund, Inc. 914,424 10,413,461 1,218,139 13,491,950 (570,301) (6,423,962) 1,562,262 17,481,449
Lincoln National Capital
Appreciation Fund, Inc. 2,743,496 29,215,296 33,385 352,060 (35,561) (383,640) 2,741,320 29,183,716
Lincoln National Equity Income
Fund, Inc. 4,702,941 52,659,663 139,249 1,493,577 (8,299) (94,200) 4,833,891 54,059,040
Lincoln National Global Asset
Allocation Fund, Inc. 676,183 7,877,266 498,073 5,639,620 (527,286) (6,136,540) 646,970 7,380,346
Lincoln National Growth and
Income Fund, Inc. 3,080,048 75,306,254 4,377,795 100,769,414 (425,159) (10,271,580) 7,032,684 165,804,088
Lincoln National International
Fund, Inc. 2,153,768 26,534,547 1,305,767 15,350,245 (1,444,640) (17,790,353) 2,014,895 24,094,439
Lincoln National Managed Fund,
Inc. 731,886 10,029,024 1,590,320 20,897,760 (830,577) (11,089,438) 1,491,629 19,837,346
Lincoln National Money Market
Fund, Inc. 2,497,026 24,970,258 319,661 3,196,614 (2,059,829) (20,598,295) 756,858 7,568,577
Lincoln National Social Awareness
Fund, Inc. 942,078 16,845,814 560,629 9,583,464 (73,236) (1,288,786) 1,429,471 25,140,492
Lincoln National Special
Opportunities Fund, Inc. 1,782,194 41,428,814 1,003,269 22,445,189 (489,693) (11,154,852) 2,295,770 52,719,151
</TABLE>
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS - UNAUDITED (CONTINUED)
9. DISTRIBUTION TO SHAREHOLDER
The Funds declare dividends daily on net investment income and annually, if any,
on net realized gains. Dividends are distributed annually.
10. CAPITAL LOSS CARRYFORWARD
As of June 30, 1995 the following Funds had available for federal income tax
purposes unused capital loss carryforwards expiring in the year 2002:
<TABLE>
<CAPTION>
<S> <C>
Lincoln National Aggressive Growth Fund, $1,716,614
Lincoln National Bond Fund, Inc. 7,898,450
Lincoln National International Fund, Inc. 5,750,914
</TABLE>
11. FUND NAME CHANGES
Effective April 28, 1995, the name of the Lincoln National Growth Fund, Inc. was
changed to the Lincoln National Growth and Income Fund, Inc. and the Lincoln
National Putnam Master Fund, Inc. was changed to Lincoln National Global Asset
Allocation Fund, Inc.
40
<PAGE>
FINANCIAL HIGHLIGHTS - Unaudited
(Selected data for each share of Common Stock outstanding throughout the year)
<TABLE>
<CAPTION>
Income from Investment Operation Less Dividends From:
----------------------------------------- -------------------------------------
Net Net
Asset Realized and Total
Year Value Net Unrealized From Net Net Realized
Ended Beginning Investment Gain(Loss) on Investment Investment Gain on Total
12/31 of Period Income(Loss) Investments Operations Income Investments Dividends
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Lincoln National Aggressive Growth Fund, Inc.
1993 $10.000 $ - $ - $ - $ - $ $
1994 10.000 0.019 (0.952) (0.933)* (0.019) - (0.019)
1995+ 9.048 0.010 1.487 1.497 (0.010) 0.000 (0.010)
Lincoln National Bond Fund, Inc.
1986 $11.904 $1.192 $ 0.780 $ 1.972 $(1.192) $(0.236) $(1.428)
1987 12.448 1.055 (0.873) 0.182 (1.055) (0.434) (1.489)
1988 11.141 1.053 (0.131) 0.922 (1.053) - (1.053)
1989 11.010 1.027 0.428 1.455 (1.027) - (1.027)
1990 11.438 0.998 (0.240) 0.758 (0.998) - (0.998)
1991 11.198 0.956 0.990 1.946 (0.956) - (0.956)
1992 12.188 0.903 0.052 0.955 (0.903) - (0.903)
1993 12.240 0.758 0.703 1.461 (0.758) (0.250) (1.008)
1994 12.693 0.741 (1.233) (0.492) (0.741) (0.519) (1.260)
1995+ 10.941 0.402 0.852 1.254 (0.402) 0.000 (0.402)
Lincoln National Capital Appreciation Fund, Inc.
1993 $10.000 $ - $ - $ - $ - $ - $ -
1994 10.000 0.134 0.152 0.286 (0.134) - (0.134)
1995+ 10.152 0.088 1.175 1.263 (0.088) 0.000 (0.088)
Lincoln National Equity Income Fund, Inc.
1993 $10.000 $ - $ - $ - $ - $ - $ -
1994 10.000 0.258 0.335 0.593 (0.258) - (0.258)
1995+ 10.335 0.138 1.678 1.816 (0.138) (0.058) (0.196)
Lincoln National Global Asset Allocation Fund, Inc.
1987 $10.000 $ 0.146 $(0.973) $(0.827) $(0.146) $ - $(0.146)
1988 9.027 0.405 0.589 0.994 (0.405) - (0.405)
1989 9.616 0.573 1.165 1.738 (0.573) - (0.573)
1990 10.781 0.549 (0.516) 0.033 (0.549) (0.279) (0.828)
1991 9.986 0.426 1.391 1.817 (0.426) (0.138) (0.564)
1992 11.239 0.404 0.271 0.675 (0.404) (0.306) (0.710)
1993 11.204 0.362 1.522 1.884 (0.362) (0.224) (0.586)
1994 12.502 0.349 (0.702) (0.353) (0.349) (0.656) (1.005)
1995+ 11.144 0.213 1.106 1.319 (0.213) 0.000 (0.213)
Lincoln National Growth and Income Fund, Inc.
1986 $16.138 $ 0.544 $ 2.147 $ 2.691 $(0.544) $(0.254) $(0.798)
1987 18.031 0.587 2.148 2.735 (0.587) (0.539) (1.126)
1988 19.640 0.540 0.729 1.269 (0.540) (2.997) (3.537)
1989 17.372 0.793 2.859 3.652 (0.793) - (0.793)
1990 20.231 0.512 (0.539) (0.027) (0.512) (1.068) (1.580)
1991 18.624 0.617 5.142 5.759 (0.617) - (0.617)
1992 23.766 0.663 (0.336) 0.327 (0.663) (0.503) (1.166)
1993 22.927 0.610 2.285 2.895 (0.610) (0.519) (1.129)
1994 24.693 0.668 (0.428) 0.240 (0.668) (0.968) (1.636)
1995+ 23.297 0.334 4.252 4.586 (0.334) (1.273) (1.607)
Lincoln National International Fund, Inc.
1991 $10.000 $(0.030) $ 0.047 $ 0.017 $(0.059) $ - $(0.059)
1992 9.958 0.037 (0.867) (0.830) (0.037) - (0.037)
1993 9.091 0.010 3.551 3.561 (0.010) - (0.010)
1994 12.642 0.033 0.385 0.418 (0.033) - (0.033)
1995+ 13.027 0.072 0.200 0.271 (0.072) (0.574) (0.645)
</TABLE>
<TABLE>
<CAPTION>
Net Ratio of Net
Asset Ratio of Investment Net Assets
Year Value Expenses Income Portfolio At End
Ended End Total To Average To Average Turnover of Period
12/31 of Period Return** Net Assets Net Assets Rate (000's)
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lincoln National Aggressive Growth Fund, Inc.
1993 $10.000 - - - - $ 110
1994 9.048 * (9.52%) 1.11% 0.21% 100.31% 60,697
1995+ 10.535 16.55% 0.49% 0.10% 48.72% 93,842
Lincoln National Bond Fund, Inc.
1986 $12.448 16.53% 0.52% 9.75% 156.50% $ 59,449
1987 11.141 (0.47%) 0.56% 9.17% 176.75% 50,795
1988 11.010 9.24% 0.57% 9.41% 183.79% 59,947
1989 11.438 13.23% 0.53% 9.13% 121.19% 91,152
1990 11.198 5.45% 0.53% 9.00% 76.67% 103,845
1991 12.188 17.96% 0.52% 8.32% 72.80% 139,854
1992 12.240 7.68% 0.52% 7.45% 257.27% 168,636
1993 12.693 13.39% 0.50% 6.05% 324.90% 226,150
1994 10.941 (5.01%) 0.50% 6.40% 213.26% 195,010
1995+ 11.793 15.15% 0.25% 3.56% 69.62% 228,617
Lincoln National Capital Appreciation Fund, Inc.
1993 $10.000 - - - - $ 110
1994 10.152 * 1.52% 1.18% 1.33% 185.28% 52,904
1995+ 11.327 12.21% 0.54% 0.82% 95.52% 90,079
Lincoln National Equity Income Fund, Inc.
1993 $10.000 - - - - $ 110
1994 10.335 * 3.35% 1.26% 2.48% 33.40% 78,861
1995+ 11.955 17.57% 0.57% 1.23% 17.48% 149,018
Lincoln National Global Asset Allocation Fund, Inc.
1987 $ 9.027 (9.73%) 0.45% 1.42% 12.92% $ 21,084
1988 9.616 7.56% 1.16% 4.36% 136.79% 26,885
1989 10.781 16.74% 1.33% 5.59% 79.11% 44,913
1990 9.986 (0.12%) 1.14% 5.49% 56.28% 56,088
1991 11.239 20.17% 1.04% 4.01% 101.41% 76,269
1992 11.204 6.39% 1.07% 3.70% 128.53% 95,607
1993 12.502 17.88% 1.05% 3.04% 208.55% 153,500
1994 11.144 (2.43%) 1.06% 3.07% 134.33% 195,697
1995+ 12.250 13.05% 0.47% 1.83% 77.23% 223,061
Lincoln National Growth and Income Fund, Inc.
1986 $18.031 16.77% 0.50% 3.06% 55.22% $105,781
1987 19.640 14.75% 0.52% 2.78% 142.01% 177,354
1988 17.372 8.06% 0.54% 3.08% 179.88% 209,513
1989 20.231 19.86% 0.50% 4.06% 208.98% 295,399
1990 18.624 1.68% 0.48% 2.79% 59.47% 356,329
1991 23.766 30.83% 0.44% 2.86% 33.59% 581,297
1992 22.927 1.24% 0.41% 2.97% 74.50% 765,457
1993 24.693 13.31% 0.38% 2.58% 60.76% 1,034,105
1994 23.297 0.94% 0.37% 2.85% 76.34% 1,161,324
1995+ 26.276 22.80% 0.18% 1.38% 29.11% 1,494,623
Lincoln National International Fund, Inc.
1991 $ 9.958 (0.42%) 1.06% (0.30%) 25.18% $ 20,935
1992 9.091 (8.41%) 1.46% 0.39% 22.86% 45,627
1993 12.642 39.46% 1.24% 0.09% 61.44% 161,470
1994 13.027 3.09% 1.24% 0.25% 52.78% 316,350
1995+ 12.653 2.31% 0.60% 0.58% 31.15% 332,779
</TABLE>
41
<PAGE>
FINANCIAL HIGHLIGHTS - Unaudited (Continued)
(Selected data for each share of Common Stock outstanding throughout the year)
<TABLE>
<CAPTION>
Income from Investment Operation Less Dividends From:
----------------------------------------- -------------------------------------
Net Net
Asset Realized and Total
Year Value Net Unrealized From Net Net Realized
Ended Beginning Investment Gain(Loss) on Investment Investment Gain on Total
12/31 of Period Income Investments Operations Income Investments Dividends
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Lincoln National Managed Fund, Inc.
1986 $11.305 $0.699 $ 0.943 $ 1.642 $(0.699) - $(0.699)
1987 12.248 0.674 0.352 1.026 (0.674) (0.317) (0.991)
1988 12.283 0.666 0.352 1.018 (0.666) (1.108) (1.774)
1989 11.527 0.798 1.186 1.984 (0.798) - (0.798)
1990 12.713 0.705 (0.334) 0.371 (0.705) (0.438) (1.143)
1991 11.941 0.710 1.906 2.616 (0.710) - (0.710)
1992 13.847 0.653 (0.158) 0.495 (0.653) (0.036) (0.689)
1993 13.653 0.584 0.908 1.492 (0.584) (0.409) (0.993)
1994 14.152 0.628 (0.814) (0.186) (0.628) (0.555) (1.183)
1995+ 12.783 0.316 1.746 2.063 (0.316) (0.020) (0.337)
Lincoln National Money Market Fund, Inc.
1986 $10.000 $0.662 - $ 0.662 $(0.662) - $(0.662)
1987 10.000 0.658 - 0.658 (0.658) - (0.658)
1988 10.000 0.744 - 0.744 (0.744) - (0.744)
1989 10.000 0.909 - 0.909 (0.909) - (0.909)
1990 10.000 0.802 - 0.802 (0.802) - (0.802)
1991 10.000 0.571 - 0.571 (0.571) - (0.571)
1992 10.000 0.354 - 0.354 (0.354) - (0.354)
1993 10.000 0.276 - 0.276 (0.276) - (0.276)
1994 10.000 0.381 - 0.381 (0.381) - (0.381)
1995+ 10.000 0.283 - 0.283 (0.283) - (0.283)
Lincoln National Social Awareness Fund, Inc.
1988 $10.000 $0.032 $ 0.454 $ 0.486 $(0.032) $ - $(0.032)
1989 10.454 0.309 2.920 3.229 (0.309) (0.024) (0.333)
1990 13.350 0.289 (0.989) (0.700) (0.289) (0.154) (0.443)
1991 12.207 0.348 4.242 4.590 (0.348) - (0.348)
1992 16.449 0.399 0.179 0.578 (0.399) (0.051) (0.450)
1993 16.557 0.326 1.792 2.118 (0.326) (0.454) (0.780)
1994 17.915 0.377 (0.461) (0.084) (0.377) (0.812) (1.189)
1995+ 16.642 0.214 2.926 3.139 (0.214) (0.582) (0.795)
Lincoln National Special Opportunities Fund, Inc.
1986 $17.233 $0.178 $(0.616) $(0.438) $(0.178) - $(0.178)
1987 16.617 0.064 1.316 1.380 (0.064) - (0.064)
1988 17.933 0.060 0.327 0.387 (0.060) (2.659) (2.719)
1989 15.601 0.276 4.904 5.180 (0.276) - (0.276)
1990 20.505 0.236 (1.931) (1.695) (0.236) (1.208) (1.444)
1991 17.366 0.323 7.195 7.518 (0.323) - (0.323)
1992 24.561 0.546 1.106 1.652 (0.546) (0.955) (1.501)
1993 24.712 0.530 2.703 3.233 (0.530) (2.937) (3.467)
1994 24.478 0.565 (0.942) (0.377) (0.565) (1.372) (1.937)
1995+ 22.164 0.296 3.818 4.114 (0.296) (0.955) (1.251)
</TABLE>
<TABLE>
<CAPTION>
Net Ratio of Net
Asset Ratio of Investment Net Assets
Year Value Expenses Income Portfolio At End
Ended End Total To Average To Average Turnover of Period
12/31 of Period Return** Net Assets Net Assets Rate (000's)
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lincoln National Managed Fund, Inc.
1986 $12.248 14.03% 0.51% 5.77% 76.05% $ 78,824
1987 12.283 7.35% 0.53% 5.23% 121.98% 121,167
1988 11.527 8.17% 0.55% 5.71% 166.57% 140,135
1989 12.713 16.00% 0.52% 6.47% 158.73% 182,576
1990 11.941 3.41% 0.52% 5.96% 93.38% 204,310
1991 13.847 22.59% 0.50% 5.53% 22.70% 276,899
1992 13.653 3.69% 0.49% 4.86% 226.66% 343,439
1993 14.152 11.91% 0.45% 4.24% 235.59% 445,040
1994 12.783 (2.42%) 0.44% 4.45% 160.79% 442,140
1995+ 14.509 18.76% 0.22% 2.34% 56.52% 523,486
Lincoln National Money Market Fund, Inc.
1986 $10.000 9.18% 0.55% 6.71% - $ 45,932
1987 10.000 8.02% 0.56% 6.50% - 55,093
1988 10.000 5.45% 0.55% 7.21% - 59,160
1989 10.000 7.20% 0.54% 9.09% - 88,551
1990 10.000 7.61% 0.53% 7.94% - 102,399
1991 10.000 7.48% 0.53% 5.79% - 149,555
1992 10.000 4.70% 0.53% 3.48% - 92,472
1993 10.000 4.46% 0.50% 2.76% - 81,042
1994 10.000 3.20% 0.52% 3.82% - 77,177
1995+ 10.000 4.22% 0.26% 2.82% - 84,746
Lincoln National Social Awareness Fund, Inc.
1988 $10.454 4.54% 1.64% 0.30% 10.07% $ 2,067
1989 13.350 28.51% 0.99% 2.43% 63.37% 9,565
1990 12.207 (5.54%) 0.65% 2.34% 29.39% 24,674
1991 16.449 36.98% 0.56% 2.33% 45.00% 52,959
1992 16.577 2.87% 0.55% 2.50% 84.32% 89,669
1993 17.915 13.77% 0.51% 1.90% 84.43% 137,606
1994 16.642 (0.39%) 0.53% 2.22% 64.97% 163,514
1995+ 18.986 20.61% 0.26% 1.21% 25.08% 213,680
Lincoln National Special Opportunities Fund, Inc.
1986 $16.617 (2.50%) 0.54% 1.00% 102.32% $ 43,369
1987 17.933 8.77% 0.56% 0.31% 110.80% 58,866
1988 15.601 3.73% 0.59% 0.39% 73.91% 63,982
1989 20.505 31.92% 0.55% 1.50% 92.56% 75,245
1990 17.366 (7.28%) 0.55% 1.33% 37.50% 83,762
1991 24.561 43.14% 0.53% 1.49% 111.60% 132,753
1992 24.712 6.24% 0.53% 2.35% 128.49% 189,867
1993 24.478 18.31% 0.49% 2.29% 74.11% 273,998
1994 22.164 (1.55%) 0.48% 2.49% 74.63% 318,417
1995+ 25.027 20.69% 0.23% 1.27% 46.81% 417,004
</TABLE>
The per share data, total return, ratios, and portfolio turnover are
calculated for the period from commencement of investment activity on August
3, 1987 through December 31, 1987 for the Lincoln National Global Asset
Allocation Fund, Inc., May 2, 1988 through December 31, 1988 for the Lincoln
National Social Awareness Fund, Inc., and May 1, 1991 through December 31,
1991 for the Lincoln National International Fund, Inc.; accordingly, the
total return percentage, ratios and portfolio turnover have NOT been
calculated on an annualized basis.
* Amounts differ from December 31, 1994 Annual Report due to restatement.
** Total return percentages in this table are calculated on the basis
prescribed by the Securities and Exchange Commission. These percentages are
based on the underlying mutual fund shares in which Separate Accounts C, D,
G and K may invest. The total return percentages in the table are NOT
calculated on the same basis as the performance percentages noted in the
letter at the front of this booklet (those percentages are based upon the
change in unit values).
+ Six Months ended June 30, 1995. Returns, ratios and portfolio turnovers
have NOT been calculated on an annualized basis.
42
<PAGE>
___________________
The Lincoln National Life Insurance Co. | Bulk Rate |
1300 South Clinton Street | U.S. Postage |
Fort Wayne, IN 46802 | PAID |
| Lansing, MI |
| Permit No. 1015 |
___________________
[LOGO OF LINCOLN NATIONAL LIFE INSURANCE CO.]
LINCOLN NATIONAL
LIFE INSURANCE CO.
----------------------------
A part of LINCOLN NATIONAL CORPORATION
Fort Wayne, Indiana 46801
