<TABLE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1995
- -<CAPTION>-------------------------------------------------------
- ---------------- ------
<C> <C> <C>
Issuer Shares Value
- ------<S>----------------------------- ------------
- --------------
LONG-TERM INVESTMENTS -- 86.4%
COMMON STOCK -- 73.3%
Aerospace -- 1.9%
General Motors Class H............. 300,000 $ 12,600,000
Loral Corp. ....................... 320,000 9,480,000
United Technologies, Corp. ........ 150,000 13,312,500
--------------
35,392,500
--------------
Agricultural Production/
Services -- 1.7%
AGCO Corp. ........................ 175,000 7,831,250
Case Corp. ........................ 375,000 14,296,875
Deere & Co. ....................... 100,000 8,937,500
--------------
31,065,625
--------------
Apparel/Textiles -- 0.2%
V.F. Corp. ........................ 75,000 3,590,625
--------------
Automotive -- 2.6%
Chrysler Corp. .................... 214,027 11,049,144
Dana Corp. ........................ 300,000 7,687,500
Echlin, Inc. ...................... 400,000 14,300,000
General Motors..................... 200,000 8,750,000
TRW Inc. .......................... 100,000 6,575,000
--------------
48,361,644
--------------
Banking -- 3.3%
Bank of New York Company, Inc. .... 375,000 15,750,000
Citicorp........................... 265,000 17,191,875
First Bank System Inc. ............ 150,000 7,462,500
NationsBank Corp. ................. 125,000 8,218,750
Norwest Corp. ..................... 415,000 12,242,500
--------------
60,865,625
--------------
Chemicals -- 2.7%
Air Products & Chemicals, Inc. .... 200,000 10,325,000
Dow Chemical Co. .................. 90,000 6,176,250
duPont (EI) deNemours.............. 300,000 18,712,500
Praxair, Inc. ..................... 225,000 6,075,000
Union Carbide Corp. ............... 235,000 8,900,625
--------------
50,189,375
--------------
Computer Software -- 1.5%
Computer Associates
International..................... 200,000 11,000,000
General Motors Corp., Class E...... 200,000 9,425,000
Reynolds & Reynolds, Inc., Class
A................................. 223,000 7,944,375
--------------
28,369,375
--------------
Computers/Computer Hardware -- 4.1%
Apple Computer Inc. ............... 210,000 7,625,625
Comdisco, Inc. .................... 180,000 5,490,000
Compaq Computer*................... 400,000 22,300,000
International Business Machines
Corp. ............................ 75,000 7,293,750
Read-Rite Corp. ................... 250,000 8,718,750
SCI Systems, Inc.*................. 200,000 7,025,000
Sun Microsystems, Inc.*............ 225,000 17,550,000
--------------
76,003,125
--------------
Issuer Shares Value
- ----------------------------------- ------------ --------------
Construction Machinery -- 0.8%
Caterpillar Inc. .................. 250,000 $ 14,031,250
--------------
Consumer Products -- 1.7%
Black & Decker Corp. .............. 300,000 10,162,500
Procter & Gamble Co. .............. 100,000 8,100,000
Shaw Industries.................... 195,000 2,486,250
Toro Co. .......................... 120,000 3,465,000
Whirlpool Corp. ................... 130,000 6,890,000
--------------
31,103,750
--------------
Diversified -- 0.7%
Textron, Inc. ..................... 200,000 13,750,000
--------------
Electronics/Electrical
Equipment -- 1.9%
Analog Devices Inc. ............... 200,000 7,225,000
Texas Instruments.................. 250,198 17,076,014
Xilinx, Inc.*...................... 225,000 10,350,000
--------------
34,651,014
--------------
Electronics Distributor -- 0.4%
Arrow Electronics, Inc.*........... 150,000 7,612,500
--------------
Entertainment -- 0.6%
Trump Hotels & Casino Resorts,
Inc. ............................. 325,000 5,525,000
Viacom, Inc. Class B*.............. 125,763 6,288,150
--------------
11,813,150
--------------
Environmental Services -- 0.4%
Browning-Ferris Industries,
Inc. ............................. 250,000 7,281,250
--------------
Financial Services -- 2.7%
Advanta Corp., Class A............. 100,000 3,875,000
American Express Co. .............. 200,000 8,125,000
American General Delaware.......... 450,000 14,793,750
Dean Witter, Discover & Co. ....... 207,806 10,338,349
Federal National Mortgage
Assoc. ........................... 130,000 13,633,750
--------------
50,765,849
--------------
Food/Beverage Products -- 4.1%
Coca-Cola Enterprises, Inc. ....... 400,000 10,650,000
ConAgra, Inc. ..................... 225,000 8,690,625
CPC International, Inc.*........... 100,000 6,637,500
IBP, Inc. ......................... 140,000 8,382,500
PepsiCo., Inc. .................... 250,000 13,187,500
Philip Morris Companies, Inc. ..... 175,000 14,787,500
RJR Nabisco Holdings Corp. ........ 250,000 7,687,500
Seagram Company, Ltd. ............. 200,000 7,200,000
--------------
77,223,125
--------------
Health Care -- 2.6%
Baxter International Inc. ......... 400,000 15,450,000
Columbia/HCA Healthcare Corp. ..... 235,000 11,544,375
FHP International Corp.*........... 200,000 4,850,000
Humana, Inc.*...................... 225,000 4,753,125
Manor Care, Inc. .................. 125,000 4,093,750
Tenet Healthcare Corp.*............ 415,000 7,418,125
--------------
48,109,375
--------------
See notes to financial statements.<FN>
17
<PAGE>
</TABLE>
<TABLE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1995 (continued)
<caption---------------------------------------------------------
- ---------------------
<C> <C> <C>
Issuer Shares Value
- ---<S>-------------------------------- ------------
- --------------
Insurance -- 4.1%
Allstate Corp. .................... 278,110 $ 10,220,543
American International Group....... 142,500 12,023,438
Chubb Corp. ....................... 150,000 13,481,250
Mid Ocean, Ltd.*................... 170,000 6,013,750
Reliastar Financial Corp. ......... 140,000 5,845,000
St. Paul Companies, Inc. .......... 200,000 10,150,000
Transamerica Corp. ................ 150,000 10,162,500
Transport Holdings, Inc., Class
A*................................ 750 29,437
Travelers, Inc. ................... 150,000 7,575,000
--------------
75,500,918
--------------
Manufacturing -- 2.3%
Eaton Corp. ....................... 150,000 7,687,500
Johnson Controls................... 275,000 16,018,750
Kennametal Inc. ................... 175,000 5,446,875
Varity Corp.*...................... 400,000 14,500,000
--------------
43,653,125
--------------
Metals/Mining -- 1.6%
Aluminum Co. of America (ALCOA).... 200,000 10,200,000
Inco, Ltd. ........................ 375,000 12,890,625
Phelps Dodge Corp. ................ 100,000 6,337,500
--------------
29,428,125
--------------
Office/Business Equipment -- 0.4%
Xerox Corp. ....................... 55,000 7,136,250
--------------
Oil & Gas -- 6.2%
Amoco Corp. ....................... 150,000 9,581,250
Ashland Inc. ...................... 250,000 7,906,250
Halliburton Company................ 449,000 18,633,500
Mobil Corp. ....................... 125,000 12,593,750
Panhandle Eastern Corp. ........... 650,000 16,412,500
Phillips Petroleum Co. ............ 355,000 11,448,750
Smith International*............... 194,200 3,107,200
Triton Energy Corp. ............... 250,000 11,656,250
Ultramar Corp. .................... 200,000 4,875,000
Unocal Corp. ...................... 250,000 6,562,500
Williams Companies, Inc. .......... 300,000 11,587,500
--------------
114,364,450
--------------
Paper/Forest Products -- 3.1%
Boise Cascade Corp. ............... 150,000 5,437,500
Champion International Corp. ...... 370,000 19,795,000
Fort Howard Corp.*................. 400,000 6,700,000
Mead Corp. ........................ 170,000 9,796,250
Willamette Industries.............. 261,000 15,138,000
--------------
56,866,750
--------------
Pharmaceuticals -- 2.4%
Allergan Inc. ..................... 150,000 4,406,250
American Home Products Corp. ...... 100,000 8,862,500
Glaxo Wellcome Plc................. 300,000 8,137,500
Schering-Plough Corp. ............. 250,000 13,406,250
Smithkline Beecham Plc, ADR........ 175,000 9,078,125
--------------
43,890,625
--------------
Issuer Shares Value
- ----------------------------------- ------------ --------------
Printing & Publishing -- 1.1%
Harcourt General, Inc. ............ 200,000 $ 7,925,000
The News Corporation, Ltd, ADR..... 300,000 5,962,500
Tribune Co. ....................... 125,000 7,890,625
--------------
21,778,125
--------------
Real Estate Investment
Trust -- 0.3%
Hospitality Properties Trust....... 181,000 4,751,250
--------------
Restaurants/Food Services -- 0.3%
Wendy's International, Inc. ....... 325,000 6,459,375
--------------
Retailing -- 5.0%
American Stores Co. ............... 485,000 14,489,375
Circuit City Stores, Inc. ......... 420,000 14,017,500
Dayton-Hudson Corp. ............... 250,000 17,187,500
Kroger Co.*........................ 654,000 21,827,250
May Department Stores.............. 400,000 15,700,000
Sears Roebuck & Co. ............... 300,000 10,200,000
--------------
93,421,625
--------------
Shipping/Transportation -- 3.3%
Burlington Northern, Inc. ......... 100,000 8,387,500
Consolidated Railway, Inc. ........ 200,000 13,750,000
CSX Corp. ......................... 200,000 16,750,000
Federal Express Corp.*............. 100,000 8,212,500
Ryder System....................... 300,000 7,237,500
XTRA Corp. ........................ 155,000 6,800,625
--------------
61,138,125
--------------
Steel -- 0.8%
LTV Corp.*......................... 300,000 4,200,000
USX-US Steel Group, Inc. .......... 340,000 10,157,500
--------------
14,357,500
--------------
Telecommunications -- 3.4%
AT&T Corp. ........................ 225,000 14,400,000
Frontier Corp. .................... 200,000 5,400,000
GTE Corp. ......................... 400,000 16,500,000
Sprint Corp. ...................... 275,000 10,587,500
Tele-Communications, Class A*...... 350,000 5,950,000
U S West, Inc. .................... 200,000 9,525,000
--------------
62,362,500
--------------
Toys & Games -- 0.4%
Mattel, Inc. ...................... 250,000 7,187,500
--------------
Utilities -- 4.7%
CINergy Corp. ..................... 200,000 5,675,000
CMS Energy Corp. .................. 375,000 10,359,375
Eastern Utilities Associates....... 200,000 4,700,000
FPL Group Inc. .................... 285,000 11,934,375
General Public Utilities........... 300,000 9,375,000
Nipsco Industries Inc. ............ 205,000 7,482,500
Oklahoma Gas & Electric Co. ....... 150,000 6,000,000
PECO Energy Co. ................... 259,100 7,578,675
Pinnacle West Capital Corp. ....... 700,000 19,250,000
Public Service Co. of Colorado..... 115,000 3,924,375
--------------
86,279,300
--------------
See notes to financial statements. <FN>
18
<PAGE>
</TABLE>
<TABLE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1995 (continued)
- -<CAPTION>-------------------------------------------------------
- ----------------------
<C> <C> <C>
Issuer Shares Value
- -----<S>------------------------------ ------------
- --------------
TOTAL COMMON STOCK
(Cost $1,168,160,359)............. $1,358,754,700
--------------
CONVERTIBLE PREFERRED STOCK -- 5.0%
Airlines --
Delta Airlines, Ser. C, $3.50...... 150,000 8,306,250
--------------
Automotive --
Ford Motor Co., Ser. A, 8.4%....... 80,000 7,520,000
--------------
Computers/Computer Hardware --
Ceridian Corp., 5.5%............... 120,000 11,700,000
--------------
Entertainment --
Time Warner Financing Trust,
$1.24............................. 200,000 6,400,000
--------------
Electronics/Electrical
Equipment --
Westinghouse Electric, Ser. C,
$1.30............................. 800,000 10,981,600
--------------
Environmental Services --
Browning-Ferris, Inc., 7.25%....... 88,000 2,893,000
--------------
Financial Services --
American General Delaware, Ser. A,
$3.00............................. 118,000 6,106,500
--------------
Food/Beverage Products --
RJR Nabisco Holdings Corp., Ser. C,
$0.6012........................... 700,000 4,375,000
--------------
Health Care --
FHP International Corp., Ser. A,
5.0%.............................. 225,000 5,343,750
--------------
Oil & Gas --
Diamond Shamrock, 5.0%#............ 120,000 6,540,000
Occidental Petroleum, $3.00........ 140,000 7,910,000
--------------
14,450,000
--------------
Paper/Forest Products --
International Paper Capital Corp.#
5.25%............................. 200,000 8,783,800
--------------
Printing & Publishing --
The News Corporation ADR, $.11..... 200,000 3,650,000
--------------
Steel --
WHX Corp., Ser. B, $3.75........... 48,500 2,037,000
--------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $82,938,090)............... 92,546,900
--------------
Principal
Issuer Amount (USD) Value
- ----------------------------------- ------------ --------------
FLOATING RATE NOTES -- 1.3%
Financial Services --
Goldman Sachs#,
5.85% @, due 7/1/96
(Cost $25,000,000)................ $ 25,000,000 $ 24,812,500
--------------
CONVERTIBLE CORPORATE NOTES AND BONDS -- 5.9%
Airlines --
AMR, Corp., 6.125%, due 11/1/24.... 10,000,000 9,623,400
--------------
Automotive --
Magna International Inc.,
5.0%, due 10/15/02................ 4,500,000 4,584,375
--------------
Computer Software --
Softkey International Inc.#,
5.5%, due 11/1/00................. 7,000,000 5,929,280
--------------
Consumer Products --
Grand Metropoliton Placing#,
6.5%, due 1/31/00................. 2,850,000 3,216,367
--------------
Electronics/Electrical
Equipment --
National Semiconductor,
6.5%, due 10/1/02................. 10,000,000 9,591,500
Sanmina Corp.#, 5.5%, due 8/15/02.. 2,000,000 2,224,440
--------------
11,815,940
--------------
Financial Services --
First Financial Management,
5%, due 12/15/99.................. 5,000,000 7,687,250
MBL International Finance Bermuda,
3%, due 11/30/02.................. 5,000,000 5,222,500
South African Pulp & Paper
Industries, BVI Finance Ltd, 7.5%,
due 8/1/02........................ 6,600,000 6,814,500
--------------
19,724,250
--------------
Insurance --
Aegon NV#, 4.75%, due 11/1/04...... 8,500,000 11,177,500
--------------
Manufacturing --
3 Com Corp.#, 10.25%, due 11/1/01.. 6,750,000 11,036,992
Coeur D'Alene Mines Corp.,
6.0%, due 6/10/02................. 3,000,000 2,677,500
ICN Pharmaceutical,
8.5%, due 11/15/99................ 5,000,000 5,577,800
Waban Inc., 6.5%, due 7/1/02....... 3,000,000 2,797,500
--------------
22,089,792
--------------
Oil & Gas --
Apache Corp.#, 6%, due 1/15/02..... 5,000,000 5,381,350
--------------
Pharmaceuticals --
Ciba-Geigy AG#,
6.25%, due 3/15/16................ 3,000,000 3,015,000
--------------
See notes to financial statements.<FN>
19
<PAGE>
</TABLE>
<TABLE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1995 (continued)
- -<CAPTION>-------------------------------------------------------
- ----------------------
<C> <C> <C>
Principal
Issuer Amount Value
- -------<S>---------------------------- ------------
- --------------
Printing & Publishing --
Time Warner, Inc.,
8.75%, due 1/10/15................ $ 8,349,550 $ 8,714,843
--------------
Retailing --
Federated Department Stores,
5%, due 10/1/03................... 4,000,000 3,866,760
--------------
TOTAL CONVERTIBLE CORPORATE NOTES
AND BONDS
(Cost $97,167,708)............... 109,138,857
--------------
U.S. GOVERNMENT OBLIGATIONS -- 0.9%
U.S. Treasury Bond,
9.25%, due 02/15/16
(Cost $14,430,500)............... 12,400,000 16,399,000
--------------
TOTAL LONG-TERM INVESTMENTS
(Cost $1,387,696,657)............. 1,601,651,957
--------------
SHORT-TERM INVESTMENTS -- 12.9%
U.S. GOVERNMENT OBLIGATIONS -- 0.2%
U.S. Treasury Bill, due 11/24/95@@
(Cost $3,189,011)................ 3,200,000 3,189,011
--------------
U.S. GOVERNMENT AGENCY SPONSORED
OBLIGATIONS -- 1.9%
Federal National Mortgage
Association, 5.5%, due 11/29/95
(Cost $34,850,005)............... 35,000,000 34,850,005
--------------
Principal
Issuer Amount Value
- ----------------------------------- ------------ --------------
COMMERCIAL PAPER -- 10.8%
Chemicals --
duPont (El) deNemours,
5.71%, due 11/2/95............... $ 35,000,000 $ 34,994,449
--------------
Financial Services --
Federal Home Loan Bank,
5.64%, due 11/2/95................ 20,000,000 19,996,867
Household Finance Corp.,
5.8%, due 11/1/95 ................ 41,042,000 41,042,000
JP Morgan, 5.72%, due 11/9/95...... 35,000,000 34,955,511
Receivables Capital Corp.#,
5.75%, due 11/15/95............... 35,000,000 34,921,736
Svenska Handelsbanken,
5.75%, due 11/3/95................ 35,000,000 34,988,819
--------------
165,904,933
--------------
TOTAL COMMERCIAL PAPER
(Cost $200,899,382).............. 200,899,382
--------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $238,938,398).............. 238,938,398
--------------
TOTAL INVESTMENTS --
(Cost $1,626,635,055)............ 99.3% $1,840,590,355
=================
- ---------------
@ = Rate shown is the rate in effect at 10/31/95.
* = Non income producing security.
# = Security may only be sold to qualified institutional
investors.
@@ = This security is pledged to cover financial futures
contracts.
Purchased Index Futures Outstanding
Expiration Number of Nominal Value Unrealized
Description (A)
Date Contracts at 10/31/95 Appreciation
- -----------------------------------------------------------
- ----------- ------------ -------------- ------------
S & P 500 Futures.......................................... Dec
95 300 $ 87,577,500 $1,362,579
- ---------------
(A) = One contract equals 500 shares.
See notes to financial statements. <FN>
20
<PAGE>
</TABLE>
<TABLE>
Capital Growth Portfolio
Portfolio of Investments October 31, 1995
<CAPTION>--------------------------------------------------------
- ----------------------
<C> <C> <C>
Issuer Shares Value
- ---------<S>-------------------------- ------------
- --------------
LONG-TERM INVESTMENTS -- 88.6%
COMMON STOCK -- 86.3%
Agricultural Products/
Services -- 5.0%
AGCO Corp. ........................ 435,000 $ 19,466,250
Agrium, Inc. ...................... 60,000 2,460,000
Case Corp. ........................ 153,500 5,852,188
IMC Global, Inc. .................. 100,000 7,000,000
Mississippi Chemical............... 200,000 4,825,000
Terra Industries, Inc. ............ 500,000 6,312,500
Vigoro Corp. ...................... 110,000 4,771,250
------------
50,687,188
------------
Automotive -- 2.0%
Echlin, Inc. ...................... 115,000 4,111,250
Lear Seating Corp. ................ 160,000 4,440,000
Magna International, Inc. Class
A................................. 100,000 4,325,000
Masland Corp. ..................... 350,000 4,900,000
Strattec Security Corp. ........... 20,000 335,000
Titan Wheel International, Inc. ... 127,500 1,848,750
------------
19,960,000
------------
Banking -- 4.4%
BayBanks, Inc. .................... 175,000 14,175,000
Dime Bancorp, Inc.*................ 200,000 2,125,000
Midlantic Corp., Inc. ............. 50,000 2,650,000
Standard Federal Bancorporation.... 450,000 15,975,000
Zions Bancorporation............... 150,000 10,387,500
------------
45,312,500
------------
Broadcasting -- 0.2%
People's Choice TV Corp.*.......... 87,740 1,820,605
------------
Business Services -- 0.7%
Equifax, Inc. ..................... 125,000 4,875,000
PHH Corp. ......................... 50,000 2,187,500
------------
7,062,500
------------
Chemicals -- 0.9%
Hanna (M.A.) Co. .................. 150,000 3,843,750
Material Sciences Corp.*........... 200,000 3,325,000
The Geon Company................... 100,000 2,487,500
------------
9,656,250
------------
Computer Software -- 3.9%
American Management Systems,
Inc.*............................. 150,000 4,331,250
BMC Software, Inc. ................ 125,000 4,453,125
Computervision Corp.*.............. 300,000 3,525,000
FileNet Corp.*..................... 190,000 8,621,250
Reynolds & Reynolds, Inc., Class
A................................. 500,000 17,812,500
Symantec Corp.*.................... 50,000 1,215,625
------------
39,958,750
------------
Computers/Computer Hardware -- 4.5%
Comdisco, Inc. .................... 350,000 10,675,000
Cornerstone Imaging, Inc.*......... 60,000 1,350,000
Inference Corp., Class A........... 41,650 505,006
Micros Systems, Inc.*.............. 100,000 3,725,000
Read-Rite Corp. ................... 250,000 8,718,750
SCI Systems, Inc.*................. 400,000 14,050,000
Solectron Corp.*................... 175,000 7,043,750
------------
46,067,506
------------
Issuer Shares Value
- ----------------------------------- ------------ --------------
Construction Materials -- 1.7%
Manville Corp.*.................... 500,000 $ 5,812,500
Texas Industries Inc. ............. 100,000 5,262,500
USG Corp. ......................... 200,000 5,825,000
------------
16,900,000
------------
Consumer Products -- 4.7%
Black & Decker Corp. .............. 250,000 8,468,750
Danaher Corp. ..................... 300,000 9,300,000
First Brands Corp. ................ 100,000 4,575,000
Fleetwood Enterprises, Inc. ....... 250,000 5,125,000
Lancaster Colony Corp. ............ 125,000 4,156,250
Leggett & Platt Inc. .............. 200,000 4,800,000
Toro Co. .......................... 400,000 11,550,000
------------
47,975,000
------------
Diversified -- 0.4%
Albany International Corp., Class
A................................. 200,000 4,150,000
------------
Electronics/Electrical Equipment -- 7.3%
Adaptec, Inc. ..................... 150,000 6,675,000
ADT ltd. .......................... 400,000 5,600,000
AVX Corp. ......................... 125,000 3,890,625
Belden, Inc. ...................... 116,000 2,798,500
Harman International Industries,
Inc. ............................. 105,000 4,843,125
Integrated Device Technology,
Inc.*............................. 275,000 5,225,000
ITI Technologies, Inc.*............ 40,000 1,010,000
Lam Research Corp.*................ 90,000 5,478,750
Linear Technology Corp. ........... 75,000 3,281,250
LTX Corp.* ........................ 200,000 2,475,000
Mentor Graphics Corp. ............. 250,000 5,250,000
Microchip Technology, Inc.*........ 125,000 4,960,937
Tektronix Inc. .................... 100,000 5,925,000
Teradyne Inc.*..................... 130,000 4,338,750
Vishay Intertechnology, Inc. ...... 50,600 1,783,650
Watkins-Johnson.................... 100,000 4,812,500
Xilinx, Inc.*...................... 125,000 5,750,000
------------
74,098,087
------------
Electronics Distributors -- 1.5%
Arrow Electronics, Inc.*........... 137,800 6,993,350
Marshall Industries*............... 225,000 7,931,250
------------
14,924,600
------------
Entertainment -- 1.1%
Bally Entertainment Corp.*......... 500,000 5,500,000
Integrity Music, Inc., Class A*.... 200,000 475,000
Mirage Resorts, Inc.* ............. 175,000 5,731,250
------------
11,706,250
------------
Financial Services -- 3.3%
Advanta Corp., Class A............. 200,000 7,750,000
DST Systems, Inc.*................. 174,500 3,664,500
Finova Group, Inc. ................ 100,000 4,525,000
Green Tree Financial Corp. ........ 450,000 11,981,250
National Auto Credit, Inc.*........ 300,000 4,875,000
SEI Corp. ......................... 62,200 1,321,750
------------
34,117,500
------------
Food/Beverage Products -- 1.6%
IBP, Inc. ......................... 275,000 16,465,625
------------
See notes to financial statements.<FN>
21
<PAGE>
</TABLE>
<TABLE>
Capital Growth Portfolio
Portfolio of Investments October 31, 1995 (continued)
- -<CAPTION>-------------------------------------------------------
- ----------------------
<C> <C> <C>
Issuer Shares Value
- ----<S>------------------------------- ------------
- --------------
Health Care -- 4.5%
Apria Healthcare Group, Inc.*...... 60,000 $ 1,297,500
Beckman Instruments, Inc. ......... 200,000 6,625,000
Beverly Enterprises................ 350,000 4,112,500
HealthCare COMPARE*................ 175,000 6,475,000
Horizon/CMS Healthcare Corp. ...... 250,000 5,062,500
OrNda Healthcorp*.................. 500,000 8,812,500
Sybron International Corp.*........ 130,000 5,525,000
Universal Health Services, Inc.,
Class B*.......................... 200,000 7,500,000
------------
45,410,000
------------
Home Building Construction -- 0.6%
Oakwood Homes Corp. ............... 150,000 5,625,000
------------
Insurance -- 6.1%
ACE, Ltd. #........................ 170,000 5,780,000
American Re Corp. ................. 150,000 5,737,500
Mid Ocean, Ltd.*................... 175,000 6,190,625
PartnerRe Holdings, Ltd. .......... 50,000 1,331,250
PXRE Corp. ........................ 103,500 2,639,250
Reliance Group Holdings, Inc. ..... 300,000 2,212,500
Reliastar Financial Corp. ......... 325,000 13,568,750
SunAmerica, Inc. .................. 175,000 10,893,750
TIG Holdings Inc. ................. 200,000 5,075,000
Transatlantic Holdings, Inc. ...... 80,000 5,390,000
USF&G Corp. ....................... 200,000 3,350,000
------------
62,168,625
------------
Machinery & Engineering Equipment -- 0.7%
Blount Inc., Class A............... 75,000 3,253,125
Precision Castparts Corp. ......... 100,000 3,575,000
------------
6,828,125
------------
Manufacturing -- 5.7%
Duriron, Inc. ..................... 100,000 2,675,000
Elsag Bailey Process Automation
N.V.* ADR......................... 283,000 7,711,750
Furon Co. ......................... 125,000 1,937,500
JLG Industries, Inc. .............. 200,000 4,700,000
Johnson Controls................... 85,000 4,951,250
Kennametal Inc. ................... 385,000 11,983,125
Mark IV Industries................. 200,000 3,900,000
Modine Manufacturing Co. .......... 350,000 9,625,000
NACCO Industries, Inc. Class A..... 100,000 5,725,000
Varity Corp.*...................... 125,000 4,531,250
------------
57,739,875
------------
Metals/Mining -- 0.8%
Amcast Industrial Corp. ........... 200,000 3,400,000
Cleveland-Cliffs, Inc. ............ 75,000 2,803,125
Commonwealth Aluminum Corp. ....... 125,000 2,015,625
------------
8,218,750
------------
Oil & Gas -- 4.2%
Diamond Shamrock #................. 200,000 5,150,000
Noble Drilling Corp. .............. 27,097 189,681
Panhandle Eastern Corp. ........... 200,000 5,050,000
Smith International*............... 700,000 11,200,000
Total Petroleum of North America... 500,000 5,062,500
Triton Energy Corp. ............... 110,000 5,128,750
Union Texas Petroleum Holdings..... 225,000 4,050,000
Weatherford Enterra, Inc. ......... 300,000 7,237,500
------------
43,068,431
------------
Issuer Shares Value
- ----------------------------------- ------------ --------------
Paper/Forest Products -- 1.3%
Boise Cascade Corp. ............... 125,000 $ 4,531,250
Bowater, Inc. ..................... 100,000 4,425,000
Rayonier, Inc. .................... 125,000 4,687,500
------------
13,643,750
------------
Printing & Publishing -- 0.4%
Pulitzer Publishing................ 100,000 4,525,000
------------
Real Estate Investment
Trust -- 2.8%
Avalon Properties, Inc. ........... 200,000 3,900,000
Bay Apartment Communities, Inc. ... 150,000 3,093,750
Developers Diversified Realty...... 50,000 1,425,000
Evans Withycombe Residential,
Inc. ............................. 150,000 2,831,250
Home Properties of New York,
Inc. ............................. 222,400 3,753,000
Liberty Property Trust............. 200,000 4,050,000
Oasis Residential, Inc. ........... 200,000 4,350,000
ROC Communities, Inc. ............. 100,000 2,250,000
Storage Trust Realty............... 100,000 1,962,500
Walden Residential Properties,
Inc.,............................. 65,000 1,194,375
------------
28,809,875
------------
Retailing -- 6.6%
Baker (J.), Inc. .................. 150,000 862,500
Big B Inc. ........................ 212,000 3,127,000
Casey's General Stores, Inc. ...... 225,000 5,175,000
Circuit City Stores, Inc. ......... 200,000 6,675,000
Dillard Department Stores, Inc.,
Class A........................... 350,000 9,493,750
Eckerd Corp.*...................... 300,000 11,887,500
Ethan Allen Interiors, Inc.*....... 471,000 9,302,250
General Nutrition Companies,
Inc. ............................. 280,000 6,965,000
Kroger Co.*........................ 150,000 5,006,250
Mercantile Stores.................. 200,000 8,975,000
------------
67,469,250
------------
Shipping/Transportation -- 2.7%
Consolidated Freightways........... 200,000 4,650,000
GATX Corp. ........................ 200,000 9,500,000
Pittston Services Group............ 250,000 6,875,000
XTRA Corp. ........................ 100,000 4,387,500
Landstar System, Inc.*............. 65,000 1,706,250
------------
27,118,750
------------
Steel -- 0.5%
LTV Corp.*......................... 400,000 5,600,000
------------
Telecommunications -- 1.3%
Aspect Telecommunications Corp.*... 350,000 12,031,250
Mobilemedia Corp. ................. 65,000 1,706,250
------------
13,737,500
------------
Textile Mill Products -- 1.0%
Springs Industries, Inc., Class
A................................. 125,000 5,359,375
Warnaco Group, Inc., Class A....... 190,000 4,417,500
------------
9,776,875
------------
Utilities -- 3.9%
CINergy Corp. ..................... 200,000 5,675,000
CMS Energy Corp. .................. 400,000 11,050,000
DQE, Inc. ......................... 300,000 8,250,000
Pinnacle West Capital Corp. ....... 300,000 8,250,000
Public Service Co. of Colorado..... 200,000 6,825,000
------------
40,050,000
------------
See notes to financial statements.<FN>
22
<PAGE>
</TABLE>
<TABLE>
Capital Growth Portfolio
Portfolio of Investments October 31, 1995 (continued)
<CAPTION>--------------------------------------------------------
- ----------------------
<C> <C> <C>
Issuer Shares Value
- ---<S>-------------------------------- ------------
- --------------
TOTAL COMMON STOCK
(Cost $775,067,805)............... $ 880,652,167
------------
PREFERRED STOCK -- 0.1%
Electronics/Electrical Equipment --
Comptronix, Ser. A, 6%............. 3,758 6,577
------------
Telecommunications --
LCI International, Inc., 5%........ 10,000 478,750
------------
TOTAL PREFERRED STOCK
(Cost $250,000)................... 485,327
------------
WARRANTS -- 0.1%
Oil & Gas --
BJ Services Co., Expires 1/15/15,
strike price, $30.00
(Cost $600)....................... 60,000 270,000
------------
Principal
Amount
------------
CONVERTIBLE CORPORATE BONDS &
NOTES -- 1.0%
Computer Software --
Softkey International Inc.#,
5.5%, due 11/1/00................. $ 5,000,000 4,235,200
------------
Computers/Computer Hardware --
Quantum Corp.#,
6.375%, due 4/1/00................ 250,000 265,000
------------
Health Care --
ICN Pharmaceutical,
8.5%, due 11/15/99................ 3,000,000 3,346,680
Surgical Laser Technology, Inc.,
8.00%, due 7/30/99................ 3,033 1,820
Shuler Homes,
6.5%, due 1/15/03................. 300,000 252,375
------------
3,600,875
------------
Restaurants/Food Services --
Flagstar Companies, Inc.,
10%, due 11/1/14.................. 100,000 61,167
------------
Tire & Rubber --
Titan Wheel International,
4.75%, due 12/1/00................ 1,500,000 1,800,000
------------
Principal
Issuer Amount Value
- ----------------------------------- ------------ --------------
TOTAL CONVERTIBLE CORPORATE BONDS &
NOTES
(Cost $10,140,800)................ $ 9,962,242
------------
VARIABLE RATE NOTES -- 1.1%
Goldman Sachs #,
5.85%, due 7/1/96@
(Cost $12,000,000)............... $ 12,000,000 11,889,720
------------
TOTAL LONG-TERM INVESTMENTS
(Cost $797,459,205)............... 903,259,456
------------
SHORT-TERM INVESTMENTS -- 10.4%
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 3.9%
Federal Home Loan Bank, Discount
Note, due 12/04/95................ 20,000,000 19,897,517
Federal National Mortgage
Association, Discount Note,
due 11/15/95...................... 20,000,000 19,956,133
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $39,853,650)................ 39,853,650
------------
COMMERCIAL PAPER -- 6.5%
Household Finance Corp.,
5.80%, due 11/01/95.............. 26,325,000 26,325,000
Merrill Lynch, 5.73%, due
11/10/95.......................... 20,000,000 19,971,350
Receivables Capital Corp.,
5.75%, due 11/15/95#.............. 20,000,000 19,955,278
------------
TOTAL COMMERCIAL PAPER
(Cost $66,251,628)................ 66,251,628
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $106,105,278).............. 106,105,278
------------
TOTAL INVESTMENTS --
(Cost $903,564,483)............... 99.0% $1,009,364,734
------------
------------
- ---------------
* = Non-income producing security.
Security may only be sold to qualified
# = institutional investors.
@ = Rate shown is the rate in effect at 10/31/95
See notes to financial statements.<FN>
23
<PAGE>
</TABLE>
<TABLE>
International Equity Portfolio
Portfolio of Investments October 31, 1995
- -----------------------------------------------------------------
- -------------
<CAPTION> <C> <C> <C>
Value
Issuer Shares (USD)
- -------<S>-------------------------------- ---------
- -------------
LONG-TERM INVESTMENTS -- 93.4%
COMMON STOCK -- 93.2%
ARGENTINA -- 1.1%
Banking--
Banco Frances del Rio de la Plata
S.A., ADR........................... 13,500 $ 295,313
Oil & Gas--
YPF Sociedad, ADR..................... 5,000 85,625
-----------
380,938
-----------
CHILE -- 0.7%
Packaging --
Cristalerias De Chile S.A., ADR....... 10,000 242,500
-----------
FINLAND -- 1.7%
Electronics/Electrical Equipment --
Nokia AB, Ser. A...................... 5,000 286,182
Nokia AB, Ser. K Shares............... 1,800 105,145
Paper/Forest Products --
Kymmene OY............................ 7,485 204,511
-----------
595,838
-----------
FRANCE -- 5.8%
Automotive --
Peugeot S.A.*......................... 1,000 130,439
Broadcasting & Publishing --
TV Francaise.......................... 1,055 109,097
Consumer Products --
SEITA................................. 7,050 245,418
Financial Services --
Cetelem Group*........................ 1,950 311,457
Leisure --
Salomon S.A........................... 433 250,215
Oil & Gas --
Total S.A., Ser. B.................... 3,200 198,022
Pharmaceuticals --
Roussel-Uclaf......................... 1,500 246,340
Retailing --
Docks De France....................... 3,318 505,496
-----------
1,996,484
-----------
GERMANY -- 6.4%
Banking --
Commerzbank AG........................ 1,062 245,922
Electronics/Electrical Equipment --
Siemens AG............................ 313 164,181
Machinery & Equipment --
Mannesmann AG......................... 540 177,819
Pharmaceuticals --
Altana Industrie-Aktien Und Anlagen
AG.................................. 800 465,404
Retailing --
Asko Deutsche Kaufhaus AG............. 790 410,455
Karstadt AG........................... 560 244,387
Utilities --
VEBA AG............................... 11,700 480,573
-----------
2,188,741
-----------
Value
Issuer Shares (USD)
- --------------------------------------- --------- -------------
HONG KONG -- 3.0%
Banking --
HSBC Holdings Plc..................... 42,024 $ 621,215
Diversified --
Jardine Matheson Holdings............. 70,000 427,000
-----------
1,048,215
-----------
INDONESIA -- 1.0%
Telecommunications --
PT Indosat, ADR *..................... 10,000 331,250
-----------
IRELAND -- 1.9%
Banking --
Bank of Ireland....................... 83,000 551,102
Insurance --
Irish Life Plc........................ 28,000 103,138
-----------
654,240
-----------
ITALY -- 1.8%
Telecommunications --
Telecom Italia Mobile................. 287,374 483,457
Stet D Risp Port, Non-Convertible
Savings Shares...................... 60,947 132,975
-----------
616,432
-----------
JAPAN -- 30.0%
Automotive --
Hitachi Zosen Corp.,.................. 45,000 221,380
Nissan Motor Co, Ltd.................. 85,000 573,622
Banking --
Industrial Bank of Japan.............. 13,000 354,736
Engineering Services --
JGC Corp. ............................ 26,000 282,263
Electronics/Electrical Equipment --
Advantest Corp........................ 16,000 907,624
Fanuc Co.............................. 21,000 909,873
Keyence Corp.......................... 8,000 985,867
Kyocera Corp.......................... 15,000 1,229,400
Mitsubishi Electric Corp.............. 70,000 523,057
Murata Manufacturing Co., Ltd......... 5,000 171,646
NEC Corp.............................. 51,000 673,382
Ushio Inc............................. 51,000 578,610
Financial Services --
Credit Saison Co. Ltd................. 5,000 105,140
New Japan Securities.................. 72,000 338,012
Machinery & Engineering Equipment --
Komori Corp........................... 21,000 497,041
Mitsubishi Heavy Industries Ltd....... 75,000 578,757
Shin Nippon Machinery................. 7,000 52,716
Retailing --
Ito-Yokado Co. Ltd.................... 12,000 656,071
Steel --
Nippon Steel Company.................. 114,000 377,974
Telecommunications --
Tamura Electric Works................. 20,000 305,149
-----------
10,322,320
-----------
See notes to financial statements.<FN>
24
<PAGE>
</TABLE>
<TABLE>
International Equity Portfolio
Portfolio of Investments October 31, 1995 (continued)
<CAPTION>--------------------------------------------------------
- ----------------------
<C> <C> <C>
Value
Issuer Shares (USD)
- --<S>------------------------------------- ---------
- -------------
MALAYSIA -- 2.8%
Construction Materials --
Sungei Way Holdings Bhd............... 84,000 $ 282,645
Packaging --
Kian Joo Can Factory Bhd.............. 169,500 667,060
-----------
949,705
-----------
NETHERLANDS -- 5.1%
Appliances & Household Durables --
Philips Gloeilampen................... 4,000 154,577
Broadcasting & Publishing --
Verenigde Nederlandse Uitgevbedri
Verigd Bezit (VNU).................. 2,843 398,398
Financial Services --
International Nederlanden Groep NV.... 8,315 495,687
Food/Beverage Products --
Heineken NV........................... 1,927 341,818
Telecommunications --
Royal PTT Nederland NV................ 10,010 351,951
-----------
1,742,431
-----------
SPAIN -- 3.1%
Banking --
Banco Santander....................... 13,545 590,627
Steel --
Acerinox SA -- New.................... 294 30,989
Utilities --
Iberdrola S.A......................... 60,787 458,375
-----------
1,079,991
-----------
SWEDEN -- 1.5%
Automotive --
Autoliv AB............................ 4,875 279,660
Machinery & Engineering Equipment --
Svedala Industri AB-Free.............. 10,000 253,706
-----------
533,366
-----------
SWITZERLAND -- 5.6%
Pharmaceuticals --
Ciba-Geigy AG (Bearer Shares)......... 300 258,962
Ciba-Geigy AG (Registered Shares)..... 390 337,682
Roche Holding AG...................... 102 741,214
Sandoz AG (Registered Shares)......... 540 445,680
Sandoz AG (Bearer Shares)............. 157 130,684
-----------
1,914,222
-----------
THAILAND -- 6.7%
Banking --
Bangkok Metropolitan Bank (Foreign)... 480,000 515,001
Krung Thai Bank Ltd. (Foreign)........ 149,000 592,092
Financial Services --
Finance One Co., Ltd. (Foreign)....... 79,000 442,639
Steel --
Sahaviriya Steel Industry (Foreign)... 180,000 418,438
Telecommunications --
Loxley Company Ltd. (Foreign)......... 16,000 321,717
-----------
2,289,887
-----------
UNITED KINGDOM -- 15.0%
Aerospace --
British Aerospace Plc................. 7,629 85,510
Airlines --
British Airways Plc................... 28,864 207,621
Value
Issuer Shares (USD)
- --------------------------------------- --------- -------------
Automotive --
Cowie Group Plc....................... 35,218 $ 165,915
Banking --
Abbey National Plc.................... 12,990 109,970
Broadcasting & Publishing --
General Cable Plc..................... 86,000 256,280
Computers/Computer Hardware --
Amstrad Plc........................... 42,044 193,752
Consumer Products --
B.A.T. Industries Plc................. 31,296 256,780
Electronics/Electrical Equipment --
General Electric Company Plc.......... 18,783 93,239
Hotels/Other Lodging --
Greenalls Group Plc................... 45,122 345,254
Industrial Components --
McKechnie Group Plc................... 27,822 191,769
Insurance --
General Accident Plc.................. 26,898 274,912
Lloyds Abbey Life Group............... 20,450 147,907
Royal Insurance Holdings Plc.......... 37,493 231,460
Machinery & Equipment --
Powerscreen International Plc......... 25,754 156,751
Senior Engineering Group Plc.......... 101,176 158,350
Vickers Plc........................... 22,933 90,999
Packaging --
David S. Smith (Holdings) Plc......... 18,961 172,659
Pharmaceuticals --
Glaxo Wellcome Plc.................... 14,899 201,032
Restaurants/Food Services --
Compass Group Plc..................... 13,556 92,152
Retailing --
Tesco Plc............................. 67,925 322,148
Shipping/Transportation --
Ocean Group Plc....................... 18,680 108,675
Telecommunications --
British Telecommunications Plc........ 14,512 86,377
Textile Mill Products and Apparel --
Coats Viyella Plc..................... 49,341 145,866
Dewhirst Group Plc.................... 36,021 106,488
Utilities --
Anglian Water Plc..................... 31,064 276,239
National Power Plc.................... 85,268 272,296
South West Water Plc.................. 23,885 189,177
Thames Water Plc...................... 24,205 201,469
-----------
5,141,047
-----------
TOTAL COMMON STOCK
(Cost $29,074,450).................... 32,027,607
-----------
WARRANTS -- 0.2%
MALAYSIA --
Construction Materials --
Sungei Way Holdings Bhd., expires
06/29/99............................ 12,000 14,168
Packaging --
Kian Joo Can Factory Bhd, expires
05/22/99............................ 23,000 38,016
-----------
TOTAL WARRANTS
(Cost $13,456)........................ $ 52,184
-----------
See notes to financial statements.<FN>
25
<PAGE>
</TABLE>
<TABLE>
International Equity Portfolio
Portfolio of Investments October 31, 1995 (continued)
- -----------------------------------------------------------------
- ------------ <C> <C>
<CAPTION>
Principal
Amount
(in local Value
currency) (USD)
--------- -------------
CORPORATE BONDS AND NOTES -- .0%
FRANCE --
Banking --
Societe Generale (FRF),
3.50%, due 01/01/00
(Cost $2,844)....................... 15,840 $ 3,573
-----------
TOTAL LONG-TERM INVESTMENTS
(Cost $29,090,750).................... 32,083,364
-----------
SHORT-TERM INVESTMENTS -- 0.1%
MONEY MARKET DEPOSIT
ACCOUNT -- 0.1%
Principal Value
Issuer Amount (USD)
- --------------------------------------- --------- -------------
UNITED STATES --
Chase Manhattan Bank @ 4.0%, due
11/01/95
(Cost $51,623)..................... $ 51,623 $ 51,623
-----------
TOTAL INVESTMENTS --
(Cost $29,142,373)................... 93.5% $ 32,134,987
-----------
-----------
- ---------------
* = Non income producing security.
FRF = French Francs
USD = United States Dollars
ADR = American Depositary Receipts
@ = Affiliated Issuer
See notes to financial statements.<FN>
26
<PAGE>
</TABLE>
<TABLE>
Statement of Assets and Liabilities October 31, 1995
- -----------------------------------------------------------------
- -<CAPTION>------------
Growth
& International
Income
Capital Growth Equity
Portfolio Portfolio Portfolio
- -------------- -------------- ------------
ASSETS:
Investment securities, at value (Note 1)..............
$1,840,590,355 $1,009,364,734 $ 32,134,987
Cash..................................................
152 152,545 --
Foreign Currency (Cost $761,993)...................... --
-- 757,663
Receivable for open forward currency contracts........ --
-- 14,938
Receivable for investment securities sold.............
10,829,363 19,865,046 1,473,752
Dividends and interest receivable.....................
4,017,526 776,763 64,928
Receivable from VBDS (Note 2)......................... --
-- 7,902
Unamortized organization costs (Note 1)...............
23,996 23,996 24,923
Other assets.......................................... --
26,895 472
- -------------- -------------- -----------
Total Assets........................................
1,855,461,392 1,030,209,979 34,479,565
- -------------- -------------- -----------
LIABILITIES:
Payable to Custodian.................................. --
-- 43,628
Payable for investment securities purchased........... --
10,213,300 --
Accrued liabilities:
Advisory fees (Note 2)..............................
638,362 348,151 --
Administration fees (Note 2)........................
79,795 43,520 --
Organization costs payable..........................
40,000 40,000 --
Other accrued expenses..............................
110,092 139,289 61,609
Variation margin payable on futures contracts.........
427,500 -- --
Payable for open forward currency contracts........... --
-- 5,002
- -------------- -------------- -----------
Total Liabilities...................................
1,295,749 10,784,260 110,239
- -------------- -------------- -----------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL
INTERESTS.............................................
$1,854,165,643 $1,019,425,719 $ 34,369,326
============== ============== ===========
Cost of Investments.....................................
$1,626,635,055 $ 903,564,483 $ 29,142,373
============== ============== ===========
See notes to financial statements.<FN>
27
<S>
Statement of Operations
For the Year Ended October 31, 1995
<CAPTION>--------------------------------------------------------
- ----------------------
<S>
International
<C> <C>
Growth <C>
& Income Capital Growth Equity
Portfolio Portfolio Portfolio
- ---------------- -------------- -------------
INVESTMENT INCOME (Note 1):
Interest.............................................. $
26,372,528 $ 7,285,147 $ 119,763
Dividends.............................................
30,917,914 11,074,210 725,167
Foreign taxes withheld................................
(121,509) (3,018) (117,243)
- ----------- ----------- -----------
Total investment income...........................
57,168,933 18,356,339 727,687
- ----------- ----------- -----------
EXPENSES:
Advisory fees (Note 2)................................
6,815,197 3,563,194 431,019
Administration fees (Note 2)..........................
851,900 445,399 21,632
Accounting fees.......................................
83,003 81,003 74,151
Custodian fees (Note 2)...............................
134,266 103,147 64,251
Professional fees.....................................
70,000 68,769 64,275
Trustee fees..........................................
8,000 8,001 2,001
Miscellaneous expense.................................
37,503 44,465 24,999
Amortization of organization costs (Note 1)...........
7,990 7,990 11,516
- ----------- ----------- -----------
Total expenses....................................
8,007,859 4,321,968 693,844
- ----------- ----------- -----------
Less fees waived by the Advisor and Administrator (Note
2).................................................... --
-- 297,934
- ----------- ----------- -----------
Net Expenses........................................
8,007,859 4,321,968 395,910
- ----------- ----------- -----------
Net investment income.................................
49,161,074 14,034,371 331,777
- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments...........................................
79,876,783 38,313,408 (2,936,445)
Futures transactions..................................
15,400,050 -- --
Foreign currency transactions.........................
56 -- 152,966
- ----------- ----------- -----------
Net realized gain (loss)............................
95,276,889 38,313,408 (2,783,479)
- ----------- ----------- -----------
Change in net unrealized appreciation (depreciation) on:
Investments...........................................
153,073,852 83,513,979 1,410,173
Futures contracts.....................................
1,767,626 -- --
Foreign currency contracts and foreign currency
translations........................................ --
-- (23,821)
- ----------- ----------- -----------
Change in net unrealized appreciation
(depreciation).................................
154,841,478 83,513,979 1,386,352
- ----------- ----------- -----------
Net realized and unrealized gain (loss).................
250,118,367 121,827,387 (1,397,127)
- ----------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations............................................
$299,279,441 $ 135,861,758 ($ 1,065,350)
=========== =========== ===========
See notes to financial statements.<FN>
28
</TABLE>
<TABLE>
<S>
Statement of Changes in Net Assets For the Periods Indicated
- -----------------------------------------------------------------
- -------------
<C> <C>
Growth & Income
Capital Growth International Equity
Portfolio
Portfolio Portfolio
-------------------------------
- ------------------------------- -----------------------------
Year 11/29/93*
Year 11/29/93* Year Year
ended through
ended through ended ended
10/31/95 10/31/94
10/31/95 10/31/94 10/31/95 10/31/94
-------------- --------------
- -------------- -------------- ------------- -------------
INCREASE (DECREASE) IN NET
ASSETS:
FROM OPERATIONS:
Net investment income......... $ 49,161,074 $ 30,288,120
$ 14,034,371 $ 5,544,732 $ 331,777 $ 228,285
Net realized gain (loss) on
investments and foreign
currency.................... 95,276,889 (4,034,603)
38,313,408 14,244,098 (2,783,479) 914,084
Change in net unrealized
appreciation on investments,
futures and foreign currency
translations................ 154,841,478 9,175,252
83,513,979 4,750,804 1,386,352 397,695
-------------- --------------
- -------------- -------------- ------------- -------------
Increase (decrease) in net
assets resulting from
operations................ 299,279,441 35,428,769
135,861,758 24,539,634 (1,065,350) 1,540,064
-------------- --------------
- -------------- -------------- ------------- -------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS:
Contributions................. 511,820,403 1,858,407,526
1,403,653,138 1,071,735,107 27,092,056 61,709,664
Withdrawals................... (542,453,501) (308,316,995)
(1,217,251,104) (399,112,814) (47,239,948) (30,833,170)
-------------- --------------
- -------------- -------------- ------------- -------------
Net increase (decrease) from
transactions in investors'
beneficial interests.......... (30,633,098) 1,550,090,531
186,402,034 672,622,293 (20,147,892) 30,876,494
-------------- --------------
- -------------- -------------- ------------- -------------
Net increase (decrease) in
net assets................ 268,646,343 1,585,519,300
322,263,792 697,161,927 (21,213,242) 32,416,558
NET ASSETS:
Beginning of period........... 1,585,519,300 --
697,161,927 -- 55,582,568 23,166,010
-------------- --------------
- -------------- -------------- ------------- -------------
End of period................. $1,854,165,643 $1,585,519,300
$1,019,425,719 $ 697,161,927 $ 34,369,326 $ 55,582,568
================= =================
================= ================= =============== ===============
- ---------------
* Commencement of operations.
See notes to financial statements.<FN>
29
<PAGE>
Notes to Financial Statements October 31, 1995
- -----------------------------------------------------------------
- -------------
1. Organization and Significant Accounting Policies -- Growth and
Income
Portfolio ("GIP"), Capital Growth Portfolio ("CGP") and
International Equity
Portfolio ("IEP") (the "Portfolios") are separately registered
under the
Investment Company Act of 1940, as amended, as non-diversified,
open end
management investment companies organized as trusts under the laws
of the
State of New York. Each declaration of trust permits the Trustees
to issue
beneficial interests in the respective Portfolios. The GIP and CGP
Portfolios
commenced operations on November 29, 1993 and the IEP commenced
operations on
December 31, 1992.
Effective October 16, 1995, the offshore partner, International
Equity Fund,
withdrew its partnership interests from the International Equity
Portfolio in
the form of cash. The partnership interest of the offshore fund
declined from
19% at the beginning of the year to 1% at the time of transfer.
The following is a summary of significant accounting policies
followed by
the Portfolios:
A. Valuation of Investments -- Equity securities, purchased
options and
futures are valued at the last sale price on the exchange on
which they
are primarily traded, including the NASDAQ National Market.
Securities
for which sale prices are not available and other
over-the-counter
securities are valued at the last quoted bid price. Bonds and
other fixed
income securities (other than short-term obligations),
including listed
issues, are valued on the basis of valuations furnished by a
pricing
service. In making such valuations, the pricing service
utilizes both
dealer-supplied valuations and electronic data processing
techniques that
take into account appropriate factors such as
institutional-sized trading
in similar groups of securities, yield, quality, coupon rate,
maturity,
type of issue, trading characteristics and other market data,
without
exclusive reliance upon quoted prices. Short-term obligations
are valued
at amortized cost if acquired with fewer than 61 days to
maturity, or at
value based on quoted exchange or over-the-counter prices,
until the 61st
day prior to maturity and thereafter by amortizing the value
on the 61st
day to par at maturity. Portfolio securities for which there
are no such
quotations or valuations are valued at fair value as
determined in good
faith by or at the direction of the Trustees.
B. Security Transactions and Investment Income -- Investment
transactions are accounted for on the trade date (the date the
order to
buy or sell is executed). Securities gains and losses are
calculated on
the identified cost basis. Interest income is accrued as
earned. Dividend
income is recorded on the ex-dividend date.
C. Repurchase agreements -- It is the Trusts' policy that
repurchase
agreements are fully collateralized by U.S. Treasury and
Government
agency securities. All collateral is held by the Trust's
custodian bank,
sub-custodian or a bank with which the custodian bank has
entered into a
sub-custodian agreement or is segregated in the Federal
Reserve Book
Entry System. In connection with transactions in repurchase
agreements,
if the seller defaults and the value of the collateral
declines, or if
the seller enters into an insolvency proceeding, realization
of the
collateral by the Trust may be delayed or limited.
D. Futures contracts -- When a portfolio enters into a
futures
contract, it makes an initial margin deposit in a segregated
account,
either in cash or liquid securities. Thereafter, the deposit
is marked to
market based upon changes in the value of the futures contract
and the
portfolio makes (or receives) additional cash payments daily
to the
broker. Changes in the value of the contract are recorded as
unrealized
appreciation/depreciation until the contract is closed or
settled.
30
<PAGE>
Notes to Financial Statements October 31, 1995 (continued)
- -----------------------------------------------------------------
- -------------
The Growth and Income Portfolio invested a portion of its
liquid assets
in long stock index futures contracts to more fully
participate in the
market. Use of futures contracts subject the Portfolio to risk
of loss in
excess of amounts shown on the Statement of Assets and
Liabilities, up to
the amount of the value of the contract.
The Portfolio may enter into futures contracts only on
exchanges or
boards of trade. The exchange or board of trade acts as the
counterparty
to each futures transaction, therefore, the Portfolio's credit
risk is
limited to failure of the exchange or board of trade.
E. Foreign Currency Translations -- The books and records of
the
Portfolios are maintained in U.S. dollars. Foreign currency
amounts are
translated into U.S. dollars at the official exchange rates,
or at the
mean of the current bid and asked prices, of such currencies
against the
U.S. dollar as quoted by a major bank, on the following basis:
(a) Market value of investment securities and other assets
and
liabilities: at the closing rate of exchange at the balance
sheet date.
(b) Purchases and sales of investment securities, income and
expenses:
at the rates of exchange prevailing on the respective dates of
such
transactions.
Although the net assets of the Portfolio are presented at the
foreign
exchange rates and market values at the close of the year, the
Portfolio
does not isolate that portion of the results of operations
arising as a
result of changes in the foreign exchange rates from the
fluctuations
arising from changes in the market prices of the securities
held at year
end. Similarly, the Portfolio does not isolate the effect of
changes in
foreign exchange rates from the fluctuations arising from
changes in the
market prices of securities sold during the year. Accordingly,
realized
foreign currency gains (losses) are included in the reported
net realized
losses on security transactions.
Reported realized foreign exchange gains or losses arise from
disposition
of foreign currency, currency gains or losses realized between
the trade
and settlement dates on securities transactions, and the
difference
between the amounts of dividends, interest, and foreign
withholding taxes
recorded on the Portfolios' books on the transaction date and
the U.S.
dollar equivalent of the amounts actually received or paid.
Unrealized
foreign exchange gains and losses arise from changes (due to
the changes
in the exchange rate) in the value of foreign currency and
other assets
and liabilities denominated in foreign currencies which are
held at
period end.
G. Forward Foreign Currency Exchange Contracts -- The
portfolios may
enter into forward foreign currency contracts (obligations to
purchase or
sell foreign currency in the future on a date and price fixed
at the time
the contracts are entered into) to hedge the portfolio against
fluctuations in the value of its assets or liabilities due to
change in
the value of foreign currencies. Each day the forward contract
is open,
changes in the value of the contract are recognized as
unrealized gains
or losses by "marking to market". When the forward contract is
closed, or
the delivery of the currency is made or taken, the portfolio
records a
realized gain or loss equal to the difference between the
proceeds from
(or cost of) the closing transaction and the portfolio's basis
in the
contract. The portfolios are subject to off-balance sheet risk
to the
extent of the value of the contracts for purchases of
currency, and in an
unlimited amount for sales of currency.
31
<PAGE>
Notes to Financial Statements October 31, 1995 (continued)
- -----------------------------------------------------------------
- -------------
H. Federal Income Taxes and Distributions to Investors --
The
Portfolios intend to qualify as partnerships and therefore net
income and
net realized gains are taxed to the partners. The investors in
the
Portfolios must take into account their proportionate share of
the
Portfolios' income, gains, losses, deductions, credits and tax
preference
items in computing their federal income tax liability, without
regard to
whether they have received any cash distributions from the
Portfolio. The
Portfolios do not intend to distribute to investors their net
investment
income or their net realized gains, if any. It is intended
that the
Portfolios will be managed in such a way that investors in the
portfolio
will be able to satisfy the requirements of subchapter M of
the Internal
Revenue Code to be taxed as regulated investment companies.
I. Organization Costs -- Organization and initial
registration costs
incurred in connection with establishing each of the
Portfolios have been
deferred and are being amortized on a straight-line basis over
a
sixty-month period beginning with the commencement of
operations of each
Portfolio.
2. Fees and Other Transactions with Affiliates
A. Investment Advisory Fees -- The Chase Manhattan Bank,
N.A.
("Chase"), a direct wholly-owned subsidiary of The Chase
Manhattan
Corporation, is the Portfolios' investment adviser (the
"Adviser") and
custodian (the "Custodian"). The Adviser manages the assets of
the
Portfolios pursuant to an Advisory Agreement, and for such
services, is
paid an annual fee computed daily and paid monthly based on an
annual
rate equal to .40% of the GIP's and CGP's average daily net
assets and
1.00% of the IEP's average daily net assets. The Adviser
voluntarily
waived all or a portion of its fees as outlined in Note 2.D.
below.
B. Custodial Fees -- Chase, as Custodian, provides
safekeeping services
for the Portfolios' securities. Compensation for such services
are
presented in the Statement of Operations as custodian fees.
C. Administration Fee -- Pursuant to an Administration
Agreement,
effective October 16, 1995, Chase ("the Administrator"), and
prior
thereto The Chase Manhattan Trust Corporation Limited,
provides certain
administration services to the Portfolios. For these services,
the
Administrator, and the predecessor administrator, receives
from each
Portfolio a fee computed at an annual rate equal to 0.05% of
the
respective Portfolio's average daily net assets. The
Administrator and
its predecessor voluntarily waived all or a portion of its
fees as
outlined in Note 2D below.
D. Waivers of fees -- For the year ended October 31, 1995,
the Adviser
and Administrator (including the predecessor) of IEP
voluntarily waived
fees to which they were entitled of $276,302 and $21,632,
respectively.
E. Other -- The Portfolios' organizational costs payable are
comprised
of liabilities owed to the Funds' Distributor, Vista Broker
Dealer
Services (VBDS).
On August 27, 1995, the Chase Manhattan Corporation and
Chemical Banking
Corporation announced an agreement in principle to merge,
which was
approved by shareholders of both corporations on December 11,
1995,
subject to the approval of regulators.
32
<PAGE>
Notes to Financial Statements October 31, 1995 (continued)
- -----------------------------------------------------------------
- -------------
3. Investment Transactions
Purchases and sales of investments (excluding short-term
investments) for the
year ended October 31, 1995, were as follows:
GIP
CGP IEP
- -------------- ------------- ------------
Purchases (excluding U.S. Government)...................
$1,097,535,211 $ 855,989,009 $ 53,287,404
Sales (excluding U.S. Government).......................
899,470,573 673,232,243 67,431,260
Purchases of U.S. Government............................
19,583,924 -- --
Sales of U.S. Government................................
113,064,899 -- --
The portfolio turnover rates of GIP, CGP and IEP Portfolios for
this period
were 71%, 86% and 137%, respectively.
4. Open Forward Foreign Currency Contracts
International Equity Portfolio
Net
Unrealized
Delivery
Market Gain
Value (Local Cost
Settlement Value (Loss)
Sales Currency) (USD)
Date (USD) (USD)
- ------------------------------------- ------------
- ----------- ---------- ----------- ----------
Italian Lira......................... 965,910,000
$600,000 11/22/95 $604,315 ($4,315)
Japanese Yen......................... 35,000,000
342,801 11/02/95 342,425 376
Japanese Yen......................... 35,000,000
342,801 11/02/95 342,425 376
Japanese Yen......................... 70,000,000
686,275 11/02/95 684,650 1,625
Japanese Yen......................... 39,000,000
381,792 11/17/95 382,479 (687)
Japanese Yen......................... 178,000,000
1,758,198 11/30/95 1,749,196 9,002
Japanese Yen......................... 103,000,000
1,015,809 11/30/95 1,012,250 3,559
- ----------- ----------- ----------
Total Sales..........................
$5,127,676 $5,117,740 $9,936
========== ========== =========
5. Foreign Cash Positions
International Equity Portfolio
Net Unrealized
Local
Cost Market Value Gain (Loss)
Currency Value
(USD) (USD) (USD)
- ------------------------------------------------ -----------
- --------- ------------ --------------
Australian Dollar............................... 3,684
$ 2,788 $ 2,806 $18
German Deutsche Mark............................ 441,079
313,535 313,524 (11)
Great British Pound............................. 88,003
139,125 139,125 0
Japanese Yen.................................... 30,899,255
306,545 302,208 (4,337)
- --------- ------------ --------------
$ 761,993 $757,663 ($4,330)
======== =========== ============
33
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees
and Beneficial Interest Holders of
Growth and Income Portfolio
Capital Growth Portfolio
International Equity Portfolio
In our opinion, the accompanying statement of assets of
liabilities, including
the portfolios of investments, and the related statements of
operations and of
changes in net assets present fairly, in all material respects, the
financial
position of Growth and Income Portfolio, Capital Growth Portfolio
and
International Equity Portfolio (the "Portfolios") at October 31,
1995, the
results of each of their operations for the year then ended and the
changes in
each of their net assets for the periods presented, in conformity
with
generally accepted accounting principles. These financial
statements are the
responsibility of the Portfolios' management; our responsibility is
to express
an opinion on these financial statements based on our audits. We
conducted our
audits of these financial statements in accordance with generally
accepted
auditing standards which require that we plan and perform the audit
to obtain
reasonable assurance about whether the financial statements are
free of
material misstatement. An audit includes examining, on a test
basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing
the accounting principles used and significant estimates made by
management,
and evaluating the overall financial statement presentation. We
believe that
our audits, which included confirmation of securities at October
31, 1995 by
correspondence with the custodian and brokers and the application
of
alternative auditing procedures where confirmations from brokers
were not
received, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, NY 10036
December 15, 1995
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM VISTA GROWTH & INCOME PORTFOLIO
Financial Statements and Financial Highlights
for the Period from December 21, 1994
(Inception) to October 31, 1995 and
Independent Auditors' Report
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Stockholders of
Maxim Series Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, of Maxim Vista Growth & Income Portfolio of Maxim
Series Fund, Inc. as of October 31, 1995, and the related statement
of operations, statement of changes in net assets and the financial
highlights for the period from December 21, 1994 (inception) to
October 31, 1995. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial
statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities
owned as of October 31, 1995, by correspondence with the custodian
and brokers, and the application of alternative auditing procedures
when confirmations were not received. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Maxim Vista Growth & Income Portfolio of Maxim Series Fund, Inc. at
October 31, 1995 and the results of its operations, the changes in
net assets and the financial highlights for the period from
December 21, 1994 (inception) to October 31, 1995, in conformity
with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
December 28, 1995
</TABLE>
<TABLE>MAXIM SERIES FUND INC. <CAPTION> STATEMENT
OF ASSETS AND LIABILITIES OCTOBER 31, 1995
<C> MAXIM VISTA GROWTH & INCOME <S> PORTFOLIO
ASSETS: Investments in Hub - Growth and Income Portfolio, at
value $ 49,416,846 Receivable for investments sold 64,033
Total Assets 49,480,879 LIABILITIES: Payable for
redemptions 55,535 Other liabilities 22,181 Total
Liabilities 77,716 NET ASSETS $ 49,403,163 NET ASSETS
REPRESENTED BY: Capital stock, $.10 par value $ 4,071,719
Additional paid-in capital 39,527,174 Net unrealized
appreciation on investments 4,389,466 Undistributed net
investment income 343 Accumulated undistributed net realized
gain on investments 1,414,461 NET ASSETS $ 49,403,163
NET ASSET VALUE PER OUTSTANDING SHARE $ 1.2133 SHARES OF
CAPITAL STOCK: Authorized 100,000,000 Outstanding
40,717,195
See notes to financial statements.<FN> </TABLE>
<TABLE>MAXIM SERIES FUND INC. <CAPTION> STATEMENT OF
OPERATIONS FOR THE PERIOD DECEMBER 21, 1994 (Inception) TO
OCTOBER 31, 1995
<C> MAXIM VISTA GROWTH <S> & INCOME PORTFOLIO
INVESTMENT INCOME: Investment income allocated from Hub
portfolio $ 932,323 Expenses allocated from Hub portfolio
(138,311) Total investment income from Hub portfolio
794,012 EXPENSES: Advisory fees 155,092 Total
expenses 155,092 NET INVESTMENT INCOME 638,920
REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized
gain on investments 1,414,461 Change in net unrealized
appreciation on investments 4,389,466 Net change in realized
and unrealized appreciation on investments 5,803,927 NET
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $
6,442,847 See notes to financial statements.<FN> </TABLE>
<TABLE>MAXIM SERIES FUND, INC. <CAPTION> STATEMENT OF CHANGES
IN NET ASSETS FOR THE PERIOD DECEMBER 21, 1994 (Inception) TO
OCTOBER 31, 1995
<S>
<C> MAXIM VISTA
GROWTH & INCOME PORTFOLIO INCREASE IN NET
ASSETS: OPERATIONS: Net investment income $ 638,920
Net realized gain 1,414,461 Change in net unrealized
appreciation 4,389,466 Net increase in net assets resulting
from operations 6,442,847 DISTRIBUTION TO SHAREHOLDERS:
From net investment income (638,577) Total distribution
(638,577) SHARE TRANSACTIONS: Net proceeds from sale of
shares 54,737,972 Reinvestment of distribution 638,577 Cost
of shares redeemed (11,777,656) Net increase in net assets
resulting from share transactions 43,598,893 Total
increase in net assets 49,403,163 NET ASSETS: Beginning
of period 0 End of period $ 49,403,163
See notes to financial statements.<FN> </TABLE>
<TABLE>MAXIM SERIES FUND, INC. <CAPTION> MAXIM
VISTA GROWTH & INCOME PORTFOLIO FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock of the
portfolio for the period December 21, 1994 (inception) to
October 31, 1995 were as follows: <C>
Period Ended October 31, 1995 <S> Net Asset Value,
Beginning of Period $ 1.0000 Income From Investment Operations
Net Investment Income 0.0174 Net realized and
unrealized gain 0.2133 Total Income From Investment
Operations 0.2307 Less Distributions From Net
Investment Income (0.0174) Total Distributions (0.0174)
Net Asset Value, End of Period $ 1.2133 Total Return 27.30%
* Net Assets, End of Period $ 49,403,163 Ratio of
Expenses to Average Net Assets 1.01% * Ratio of Net
Investment Income to Average Net Assets 2.21% * *
Annualized
MAXIM SERIES FUND, INC.
MAXIM VISTA GROWTH & INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD DECEMBER 21, 1994 (Inception) TO OCTOBER 31, 1995
1. HISTORY OF THE FUND
Maxim Series Fund, Inc. (the Fund) is a Maryland corporation
organized on December 7, 1981 as an open-end management investment
company. The Maxim Vista Growth & Income Portfolio (the
Portfolio) is non-diversified. The Portfolio commenced operations
on December 21, 1994. Interests in the Portfolio are represented
by separate classes of beneficial interest of the Fund. Shares of
the Fund are sold only to FutureFunds Series Account II of
Great-West Life & Annuity Insurance Company (the Company), to fund
benefits under variable annuity contracts and variable life
insurance policies issued by the Company. The shares are sold at
a price equal to the respective net asset value per share of each
class of shares.
The Fund seeks to achieve the investment objective of the
Portfolio through the adoption of a Hub and Spoke structure.
Contribution of Portfolio (i.e., the Spoke) investible funds to the
Hub portfolio are made in exchange for beneficial interests in the
Hub portfolio of equal value. The Hub portfolio is the Growth and
Income Portfolio; a non-diversified open-end management investment
company organized as a trust under the laws of the State of New
York and registered under the Investment Company Act of 1940, as
amended. Financial statements of the Hub portfolio are presented
following the Portfolio's financial statements.
The portfolio's percentage interest in the Hub portfolio is 2.67%
at October 31, 1995.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies
of the Fund, which are in accordance with the accounting principles
generally accepted in the investment company industry:
Security Transactions
Security transactions are recorded at the earlier of trade date
or the date a commitment is made to buy or sell the related
investment. The cost of investments sold is determined on the
basis of first in, first out. Distributions to shareholders are
recorded on the ex-dividend date. Dividends from investment income
of the Portfolio are declared and reinvested quarterly and
dividends from capital gains are declared and reinvested annually.
Security Valuation
The Portfolio's investment in the Hub portfolio is valued at the
last reported net asset value of the Hub portfolio. The portfolio
receives an allocation of investment income and Hub expenses as
well as realized and unrealized gains and losses on a daily basis
from the Hub. In addition, the Portfolio accrues its own expenses
daily as incurred.
Federal Income Taxes
For federal income tax purposes, the Portfolio qualifies as a
regulated investment company under the provisions of the Internal
Revenue Code by distributing substantially all of its taxable net
income (both ordinary and capital gain) to its shareholders and
complying with the requirements for regulated investment companies.
Accordingly, no provision for federal income taxes has been
made
3. INVESTMENT ADVISORY AGREEMENT
The Fund has entered into an investment advisory agreement with
The Great-West Life Assurance Company (parent of the Company). As
compensation for its services to the Fund with respect to the Maxim
Vista Growth & Income Portfolio, the investment advisor receives
monthly compensation at the annual rate of .53% of the average
daily net assets of the Maxim Vista Growth & Income Portfolio.
4. Investment Transactions - Increases and decreases in the
Portfolio's investment in the Hub portfolio during the period
December 21, 1994 to October 31, 1995 were as follows:
Increases in Decreases in Hub Portfolio
Investment Hub Portfolio Investment Maxim Vista Growth &
Income Portfolio $ 54,737,972 $ 11,777,656 5. Transactions in
shares of beneficial interest during the period December 21, 1994
to October 31, 1995 were as follows: Shares
sold 50,481,605 Shares issued in reinvestment of distributions
544,981 Shares redeemed (10,309,391) Net increase in shares
of beneficial interest outstanding 40,717,195 Outstanding
shares at: Beginning of period 0 End of Period<FN>
40,717,195 Maxim Vista Growth and Income Portfolio
Since inception (December 21, 1994), the Portfolio has
benefitted from a positive
economic environment for the U.S. stock market. For the year ended
October 31, 1995, the
Portfolio had a total return of 22.78%.
In late 1994, the U.S. stock market was at a crossroad as
economic signals were
mixed. That is, some sectors were showing solid growth while
others were slowing as a result
of recent rate hikes by the Federal Reserve. By the end of the
first quarter, 1995, however,
stocks had climbed into the record books as conditions for the
stock market improved:
inflation was under control, the dollar firmed and first quarter
earnings were better-than-
expected.
The market continued its ascent to new highs in the second
and third quarters of
1995, sparked by continued declines in interest rates and as the
threat of inflation dissipated.
Strong economic reports dampened fears that the economy was
entering a recession and
helped bolster the market's performance. The market was further
helped as the dollar
stabilized against major foreign currencies.
After equities posted solid gains for the first nine
months of the fiscal period, cyclical
issues began to turn lower in July on expectations of a weakening
economy while the
defensive sector gained. The fiscal period ended on a negative
note for equities on weaker-
than-expected third-quarter earnings results in the cyclical area
and continued mixed
economic data.
For the period under review, the Portfolio benefited from
significant investments in
basic industry, capital goods and financial companies, which
performed well.
Going forward, basic industry, capital goods and financial
sectors appear to show the
most promise; some consumer staples and health care issues also may
be promising.
Technology stocks are expected to remain volatile as investors with
large weightings and sold
gains take some profits and those who missed the rally begin buying
on downturns. It is
anticipated that a 10% cash position will be maintained to give the
opportunity to take
advantage of attractive investment opportunities in the months
ahead.
</TABLE>
<TABLE>
Average Annual Total Returns
One Year N/A
Five Year N/A
Ten Year N/A
Since Inception 22.78%
(12/21/94)
Growth of $10,000
<S>
$13,000
<C>
<C> $12,407.36 (Lipper Growth and
Income Fund Index) <C>
<C> $12,315.70 (Maxim Vista
Growth and Income Portfolio
$12,000
$11,000
$10,000
Maxim Vista Growth and Income Portfolio
- -------- Lipper Growth and Income Fund Index
Past performance is not predictive of future performance.
Investment return and
principal value will fluctuate with market conditions. When share
are redeemed,
they may be worth more or less than their original cost.
This chart illustrates comparative performance for $10,000 invested
in the Maxim
Vista Growth and Income Portfolio and the Lipper Growth and Income
Fund
Index from December 21, 1994 to October 31, 1995.
The Lipper Growth and Income Funds Index, an equally wieghted
performance
indicator, tracks the total returns of the 30 largest growth and
income funds in
the industry. Funds included in the index are representative of
the
market.
</TABLE>
