MAXIM SERIES FUND, INC.
MAXIM VISTA GROWTH & INCOME PORTFOLIO
Financial Statements and Financial Highlights
for the Six Months Ended April 30, 1997 and 1996
<PAGE>
MAXIM SERIES FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
- -------------------------------------------------------------------------------
MAXIM VISTA
GROWTH
& INCOME
PORTFOLIO
-------------------------
ASSETS:
Investment in Hub - Growth and Income Portfolio, at value $ 107,615,173
Receivable for investments sold 212,649
-------------------------
Total assets 107,827,822
-------------------------
LIABILITIES:
Payable for redemptions 364,289
Other liabilities 177,162
-------------------------
Total liabilities 541,451
-------------------------
NET ASSETS $ 107,286,371
=========================
NET ASSETS REPRESENTED BY:
Capital stock, $.10 par value $ 7,537,609
Additional paid-in capital 82,674,072
Net unrealized appreciation on investments 10,327,662
Undistributed net investment income 58,496
Accumulated undistributed net realized gain on investments 6,688,532
-------------------------
NET ASSETS $ 107,286,371
=========================
NET ASSET VALUE PER OUTSTANDING SHARE $ 1.4233
=========================
SHARES OF CAPITAL STOCK:
Authorized 100,000,000
Outstanding 75,376,090
See notes to financial statements.
<PAGE>
MAXIM SERIES FUND INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997
- -------------------------------------------------------------------------------
MAXIM VISTA
GROWTH
& INCOME
PORTFOLIO
-------------------------
INVESTMENT INCOME:
Investment income allocated from Hub portfolio $ 1,048,888
Expenses allocated from Hub portfolio (229,498)
-------------------------
Total investment income 819,390
-------------------------
EXPENSES:
Advisory fees 257,997
-------------------------
Total expenses 257,997
-------------------------
NET INVESTMENT INCOME 561,393
-------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 6,688,532
Change in net unrealized appreciation
on investments 1,983,722
-------------------------
Net change in realized and unrealized
appreciation on investments 8,672,254
-------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 9,233,647
=========================
See notes to financial statements.
<PAGE>
MAXIM SERIES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 AND 1996
- ----------------------------------------------------------------------
MAXIM VISTA GROWTH & INCOME
------------------------------------------------
1997 1996
-------------------------- ----------------------
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income $ 561,393 $ 531,514
Net realized gain 6,688,532 4,033,795
Change in net unrealized appreciation 1,983,722 2,567,363
------------------------- -----------------------
Net increase in net assets
resulting from operations 9,233,647 7,132,672
DISTRIBUTION TO SHAREHOLDERS:
From net investment income (525,862) (527,727)
From long-term capital gain (6,631,434) (1,414,314)
--------------------- -----------------------
Total distribution (7,157,296) (1,942,041)
SHARE TRANSACTIONS:
Net proceeds from sale of shares 14,973,653 24,329,116
Reinvestment of distribution 7,157,443 1,942,041
Cost of shares redeemed (3,351,355) (9,252,157)
----------------------- -----------------------
Net increase in net assets
resulting from share 18,779,741 17,019,000
transactions
------------------------- -----------------------
Total increase in net assets 20,856,092 22,209,631
NET ASSETS:
Beginning of period 86,430,279 49,403,163
---------------------- -----------------------
End of period $ 107,286,371 $ 71,612,794
====================== =======================
OTHER INFORMATION:
SHARES:
Sold 10,524,504 18,843,675
Issued in reinvestment
of distributions 5,264,098 1,547,895
Redeemed (2,339,202) (7,177,529)
------------------------- -----------------------
Net increase in shares of
beneficial interest outstanding 13,449,400 13,214,041
OUTSTANDING SHARES AT:
Beginning of period 61,926,690 40,717,195
------------------------- -----------------------
End of period 75,376,090 53,931,236
========================= =======================
See notes to financial statements.
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM VISTA GROWTH & INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
Selected data for a share of capital stock of the portfolio for the six months
ended April 30, 1997, the year ended October 31, 1996 and the period December
21, 1994 (inception) to October 31, 1995 were as follows:
Period Ended Period Ended October 31,
April 30, 1997 1996 1995
-------------------- --------------------- -------------------
Net Asset Value,
Beginning of Period $ 1.3957 $1.2133 $1.0000
Income From Investment Operations
Net Investment Income 0.0076 0.0219 0.0174
Net Realized and
Unrealized Gain 0.1312 0.2147 0.2133
-------------------- --------------------- ----------------
Total Income From
Investment Operations 0.1388 0.2366 0.2307
Less Distributions
From Net
Investment Income (0.0072) (0.0215) (0.0174)
From Net Realized Gain (0.1040) (0.0327)
-------------------- --------------------- -----------------
Total Distributions (0.1112) (0.0542) (0.0174)
-------------------- --------------------- ----------------
Net Asset Value,
End of Period $ 1.4233 $1.3957 $1.2133
==================== ===================== =================
Total Return 17.63% * 20.01% 27.30% *
Net Assets,
End of Period $ 107,286,371 $86,430,279 $49,403,163
Ratio of Expenses
to Average Net Assets 1.00% * 1.00% 1.01% *
Ratio of Net Investment
Income to Average Net 1.15% * 1.75% 2.21% *
Assets
* Annualized
<PAGE>
MAXIM SERIES FUND, INC.
MAXIM VISTA GROWTH & INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 AND 1996
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.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies of
the Portfolio, which are in accordance with the accounting principles
generally accepted in the investment company industry:
Dividends
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 other
requirements for regulated investment companies. Accordingly, no
provision for federal income taxes has been made.
<PAGE>
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
The Portfolio's percentage interest in the Hub portfolio is 4.52% at
April 30, 1997. Increases and (decreases) in the Portfolio's investment
in the Hub during the six months ended April 30, 1997 were $14,973,653
and ($3,351,355), respectively.
<PAGE>
Growth & Income Portfolio
Portfolio of Investments April 30, 1997 (unaudited)
Shares Issuer Value
- ------------------------------------------------------------------------------
Long-Term Investments -- 92.1%
---------------------------------------------------------------------------
Common Stock -- 85.6%
-------------------------------------------------------
Aerospace -- 1.2%
175,000 Allied-Signal, Inc. $ 12,643,750
220,000 United Technologies, Corp. 16,637,500
--------------
29,281,250
--------------
Agricultural Production/Services -- 2.3%
350,000 AGCO Corp. 9,056,250
450,000 Case Corp. 24,918,750
440,000 Deere & Co. 20,240,000
--------------
54,215,000
--------------
Airlines -- 1.1%
275,001 AMR Corp. * 25,609,468
--------------
Automotive -- 0.9%
225,000 General Motors 13,021,875
250,000 Lear Corp. * 8,937,500
--------------
21,959,375
--------------
Banking -- 5.1%
145,000 BankAmerica Corp. 16,946,875
100,000 Citicorp 11,262,500
225,000 Comerica, Inc. 13,162,500
290,000 First Union Corp. 24,360,000
170,000 Mellon Bank Corp. 14,131,250
400,000 NationsBank Corp. 24,150,000
350,000 Norwest Corp. 17,456,250
--------------
121,469,375
--------------
Biotechnology -- 0.5%
200,000 Amgen, Inc. * 11,775,000
--------------
<PAGE>
Broadcasting -- 0.3%
500,000 Tele-Communications, TCI Group,
Class A * 6,906,250
--------------
Business Services -- 0.4%
275,000 Ceridian Corp. * 9,178,125
--------------
Chemicals -- 2.6%
230,000 Dow Chemical Co. 19,521,250
245,000 duPont (EI) deNemours 26,000,625
330,000 Union Carbide Corp. 16,458,750
--------------
61,980,625
--------------
See notes to financial statements.
<PAGE>
Growth & Income Portfolio
Portfolio of Investments April 30, 1997 (unaudited) (continued)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------------------
Computer Software -- 2.8%
600,000 Cisco Systems, Inc. * $ 31,050,000
550,000 Computer Associates International 28,600,000
300,000 Reynolds & Reynolds, Inc., Class A 6,225,000
--------------
65,875,000
--------------
Computers/Computer Hardware -- 5.4%
255,000 Compaq Computer Corp. * 21,770,625
650,000 EMC Corp. * 23,643,750
119,000 International Business Machines Corp. 19,129,250
300,000 Seagate Technology, Inc. * 13,762,500
280,000 Storage Technology Corp. * 9,835,000
550,000 Sun Microsystems, Inc. * 15,846,875
275,000 Texas Instruments 24,543,750
--------------
128,531,750
--------------
Construction Machinery -- 0.6%
160,000 Caterpillar Tractor, Inc. 14,240,000
--------------
Consumer Products -- 5.2%
425,000 Avon Products, Inc. * 26,190,625
400,000 Black & Decker Corp. 13,400,000
100,000 Colgate-Palmolive Co. 11,100,000
385,000 Fruit of the Loom, Inc., Class A, * 13,860,000
300,000 Liz Claiborne, Inc. 13,575,000
675,000 Philip Morris Companies, Inc. 26,578,125
150,000 Procter & Gamble Co. 18,862,500
--------------
123,566,250
--------------
Diversified -- 0.5%
300,000 American Standard Companies, Inc. * 12,562,500
--------------
Electronics/Electrical Equipment -- 1.2%
190,000 Intel Corp. 29,093,750
<PAGE>
--------------
Entertainment/Leisure -- 1.3%
840,000 Carnival Corp., Class A 30,975,000
--------------
Financial Services -- 3.8%
470,100 Countrywide Credit Industries, Inc. 12,751,463
400,000 Federal Home Loan Mortgage Corp. 12,750,000
250,000 Federal National Mortgage Assoc. 10,281,250
400,000 Green Tree Financial Corp. 11,850,001
350,000 Lehman Brothers Holding, Inc. 11,856,250
See notes to financial statements.
<PAGE>
Growth & Income Portfolio
Portfolio of Investments April 30, 1997 (unaudited) (continued)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------------------
Financial Services -- (continued)
200,000 The PMI Group, Inc. $ 10,225,000
400,000 Washington Mutual Inc. 19,750,000
--------------
89,463,964
--------------
Food/Beverage Products -- 3.8%
400,000 Coca-Cola Enterprises, Inc. 24,150,000
525,000 ConAgra, Inc. 30,253,125
600,000 PepsiCo., Inc. 20,925,000
80,000 Unilever NV, ADR (Netherlands) 15,700,000
--------------
91,028,125
--------------
Health Care/Health Care Services -- 3.2%
701,000 Columbia/HCA Healthcare Corp. 24,535,000
200,000 Guidant Corp. 13,650,000
1,220,000 HEALTHSOUTH Corp. * 24,095,000
500,000 Tenet Healthcare Corp. * 13,000,000
--------------
75,280,000
--------------
Insurance -- 4.2%
150,000 Aetna Inc. 13,668,750
400,000 Allstate Corp. 26,200,000
110,500 American International Group 14,199,250
155,000 Loews Corp. 14,240,625
170,000 Progressive Corp. 12,941,250
140,000 Reliastar Financial Corp. 8,470,000
200,000 Travelers, Inc. 11,075,000
--------------
100,794,875
--------------
Manufacturing -- 3.9%
300,000 Ingersoll-Rand Co. 14,737,500
490,000 Johnson Controls 18,803,750
340,000 Kennametal Inc. 12,240,000
<PAGE>
300,000 Parker Hannifin Corp. 14,925,000
515,000 Tyco International Ltd. 31,415,000
--------------
92,121,250
--------------
Metals/Mining -- 1.9%
450,000 Aluminum Co. of America (ALCOA) 31,443,750
450,000 Inco, Ltd. 14,400,000
--------------
45,843,750
--------------
Office/Business Equipment -- 0.8%
310,000 Xerox Corp. 19,065,000
--------------
See notes to financial statements.
<PAGE>
Growth & Income Portfolio
Portfolio of Investments April 30, 1997 (unaudited) (continued)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------------------
Oil & Gas -- 8.5%
165,000 Amoco Corp. $ 13,798,125
125,000 British Petroleum PLC, ADR (United Kingdom) 17,203,125
300,000 Coastal Corp. 14,250,000
255,000 Elf Aquitaine SA, ADR (France) 12,399,375
300,000 Halliburton Company 21,187,500
210,000 Mobil Corp. 27,300,000
32,000 Murphy Oil Corp. 1,392,000
400,000 PanEnergy Corp. 17,700,000
355,000 Phillips Petroleum Co. 13,978,125
210,000 Texaco, Inc. 22,155,000
300,000 Tidewater, Inc. 12,037,500
662,500 Williams Companies, Inc. 29,067,188
--------------
202,467,938
--------------
Paper/Forest Products -- 0.7%
9,142 Deltic Timber Corp. 231,978
240,000 Willamette Industries, Inc. 15,300,000
--------------
15,531,978
--------------
Pharmaceuticals -- 4.6%
225,000 American Home Products Corp. 14,906,250
320,000 Bristol-Myers Squibb Co. 20,960,000
330,000 Johnson & Johnson 20,212,500
240,000 Schering-Plough Corp. 19,200,000
425,000 SmithKline Beecham PLC, ADR (United Kingdom) 34,265,625
--------------
109,544,375
--------------
Photographic Equipment -- 0.9%
250,000 Eastman Kodak Co. 20,875,000
--------------
Printing & Publishing -- 1.0%
560,000 New York Times Company, Class A 24,220,000
<PAGE>
--------------
Real Estate Investment Trust -- 2.0%
345,000 Beacon Properties Corp. 10,651,875
140,000 Cali Realty Corp. 4,130,000
177,000 Duke Realty Investments, Inc. 6,504,750
230,000 Equity Residential Properties Trust 10,062,500
310,000 Security Capital Industrial Trust 6,238,750
720,000 Security Capital US Realty, (Luxembourg) ADR * 10,728,000
--------------
48,315,875
--------------
See notes to financial statements.
<PAGE>
Growth & Income Portfolio
Portfolio of Investments April 30, 1997 (unaudited) (continued)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------------------
Retailing -- 4.9%
320,000 American Stores Co. $ 14,560,000
300,000 CVS Corp. 14,887,500
450,000 Dayton-Hudson Corp. 20,250,000
525,000 Federated Department Stores * 17,850,000
500,000 Gap, Inc. 15,937,500
1,155,000 Kroger Co. * 31,762,500
--------------
115,247,500
--------------
Shipping/Transportation -- 1.3%
235,000 Burlington Northern, Inc. 18,506,250
230,000 Federal Express Corp. * 12,391,250
--------------
30,897,500
--------------
Steel -- 0.4%
385,000 Allegheny Teledyne, Inc. 10,250,625
--------------
Telecommunications -- 4.3%
650,000 BellSouth Corp. 28,925,000
375,000 Frontier Corp. 5,953,125
385,000 GTE Corp. 17,661,875
400,000 Sprint Corp. 17,550,000
475,000 Telefonaktiebolaget LM Ericsson, Sp,
(Sweden) ADR 15,971,875
700,000 WorldCom, Inc. 16,800,000
--------------
102,861,875
--------------
Textiles -- 0.3%
250,000 Unifi, Inc. 7,750,000
--------------
Utilities -- 3.7%
500,000 Centrais Electricas Brasileiras
S/A-Electrobras, 11,682,600
(Brazil) ADR
425,000 CINergy Corp. 14,131,250
250,000 Companhia Energetica de Minas Gerais (CEMIG), 11,377,100
(Brazil) ADR
505,000 FPL Group Inc. 22,535,625
350,000 GPU, Inc. 11,287,500
550,000 Pinnacle West Capital Corp. 15,675,000
--------------
86,689,075
--------------
Total Common Stock (Cost $1,615,430,230) 2,035,467,423
--------------
Convertible Preferred Stock -- 3.5%
-------------------------------------------------------
Aerospace -- 0.2%
120,000 Loral Space & Communications, 6.00%,
11/01/06 Ser. 5,743,680
# --------------
See notes to financial statements.
<PAGE>
Growth & Income Portfolio
Portfolio of Investments April 30, 1997 (unaudited) (continued)
Shares Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------------------
Airlines -- 0.3%
100,000 Continental Air Finance Trust,
8.50%, 12/01/20 $ 7,238,200
--------------
Broadcasting -- 0.2%
100,000 American Radio Systems, 7.00% # 4,662,500
--------------
Consumer Products -- 0.8%
700,000 RJR Nabisco Holdings Corp. $0.6012,
Ser. C 4,112,500
960,000 Westinghouse Electric, $1.30 # 14,456,640
--------------
18,569,140
--------------
Entertainment/Leisure -- 0.2%
150,000 Time Warner Financing Trust, $1.24 5,550,000
--------------
Financial Services -- 0.5%
100,000 Nuevo Financing Inc., 5.75%, Ser. A 4,562,500
112,500 Pacificare Holding, $1.00, Ser. C 3,515,625
91,000 SunAmerica Inc., $3.188, 10/31/99 Ser. 3,844,750
--------------
11,922,875
--------------
Insurance -- 0.2%
67,000 American Bankers Insurance Group,
6.25%, Ser. B 4,212,625
--------------
Oil & Gas -- 0.5%
80,000 Occidental Petroleum, $3.00 5,680,000
90,000 Ultramar Diamond Shamrock Corp., 5.00% 5,438,250
--------------
11,118,250
--------------
Paper/Forest Products -- 0.3%
125,000 International Paper Capital Corp., 5.25% # 5,962,125
--------------
Telecommunications -- 0.3%
75,000 Viacom International, 5.0%, 07/31/06 7,068,750
--------------
<PAGE>
Total Convertible Preferred Stock (Cost $77,743,423) 82,048,145
--------------
Preferred Stock -- 0.3%
-------------------------------------------------------
Financial Services --
6,600,000 South African Pulp & Paper
Industries, BVI Finance 6,105,000
Ltd., 7.5%, 08/01/02 (Cost $6,600,000) --------------
See notes to financial statements.
<PAGE>
Growth & Income Portfolio
Portfolio of Investments April 30, 1997 (unaudited) (continued)
Principal
Amount Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------------------
Convertible Corporate Notes & Bonds -- 1.7%
-------------------------------------------------------
Computers/Computer Hardware -- 0.3%
$ 3,600,000 EMC Corp., 3.25%, 03/15/02 # $ 3,725,063
--------------
Consumer Services -- 0.1%
3,000,000 CUC International Inc., 3.00%, 02/15/02 # 2,874,360
--------------
Electronics/Electrical Equipment -- 0.2%
3,850,000 SCI Systems Inc., 5.00%, 05/01/06 # 5,462,188
--------------
Environmental Services -- 0.1%
2,000,000 USA Waste Services Inc., 4.00%, 02/01/02 1,969,680
--------------
Financial Services -- 0.2%
2,300,000 First Financial Management, 5.00%, 12/15/99 3,739,570
--------------
Hotels/Other Lodging -- 0.2%
5,000,000 Hilton Hotels Corp., 5.00%, 05/15/06 5,209,700
--------------
Pharmaceuticals -- 0.2%
5,000,000 ICN Pharmaceutical, 8.50%, 11/15/99 5,525,000
--------------
Retail -- 0.2%
4,000,000 Federated Department Stores 4,640,760
--------------
Utilities -- 0.2%
86,000 Calenergy Capital Trust II, 6.25%, 02/25/12 # 4,606,848
--------------
Total Convertible Corporate Notes & Bonds (Cost 37,753,169
$32,962,000) --------------
Corporate Notes & Bonds -- 1.0%
-------------------------------------------------------
Automotive -- 0.2%
4,500,000 Magna International Inc., 5.00%, 10/15/02 4,936,995
--------------
<PAGE>
Electronics/Electrical Equipment -- 0.4%
7,000,000 Xilinx Inc., 5.25%, 11/01/02 8,004,080
--------------
Financial Services -- 0.2%
3,000,000 Aames Financial Corp., 5.50% 03/15/06 2,650,950
2,000,000 UBS Finance of Delaware, 2.00% 12/15/00 1,998,340
--------------
4,649,290
--------------
See notes to financial statements.
<PAGE>
Growth & Income Portfolio
Portfolio of Investments April 30, 1997 (unaudited) (continued)
Principal
Amount Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- -------------------------------------------------------------------------------
Health Care/Health Care Services -- 0.2%
$ 4,000,000 Tenet Healthcare Corp. 6.00% 12/01/05 $ 4,927,520
--------------
Total Corporate Notes & Bonds (Cost $21,115,000) 22,517,885
----------------------------------------------------------------------------
Total Long-Term Investments 2,183,891,622
(Cost $1,753,850,653)
----------------------------------------------------------------------------
Short-Term Investments -- 7.8%
----------------------------------------------------------------------------
U.S. Government Agency Obligations -- 5.0%
-------------------------------------------------------
Discount Notes,
20,000,000 Federal Home Loan Mortgage Corp., 05/19/97 19,946,900
20,000,000 Federal Home Loan Mortgage Corp., 05/07/97 19,982,067
40,000,000 Federal Home Loan Mortgage Corp., 05/30/97 39,827,128
20,000,000 Federal National Mortgage Association, 05/09/97 19,976,089
20,000,000 Tennessee Valley Authority, 05/14/97 19,961,506
-------------
Total U.S. Government Agency Obligations (Cost 119,693,690
$119,693,690) -------------
Commercial Paper -- 2.8%
-------------------------------------------------------
20,000,000 Falcon Asset Securitization Corp., 05/30/97 19,910,583
27,545,000 Household Finance Corp., 05/01/97 27,545,000
20,000,000 Thames Asset Global Sec., 05/30/97 19,910,261
-------------
Total Commercial Paper (Cost $67,365,844) 67,365,844
----------------------------------------------------------------------------
Total Short-Term Investments 187,059,534
(Cost $187,059,534)
===============================================================================
Total Investments -- 99.9% $2,370,951,156
(Cost $1,940,680,587)
<PAGE>
---------------------------------------------------------------------------
See notes to financial statements.
<PAGE>
Statement of Assets and Liabilities April 30, 1997 (unaudited)
- ------------------------------------------------------------------------------
Growth &
Income
Portfolio
--------------
ASSETS:
Investment securities, at value (Note 1)........................ $2,370,951,156
Cash............................................................ 185,351
Receivables:
Investment securities sold.................................... 18,249,920
Interest and dividends........................................ 4,293,307
Other assets.................................................... 103,657
--------------
Total Assets.............................................. 2,393,783,391
--------------
LIABILITIES:
Payable for investment securities purchased..................... 13,500,630
Accrued liabilities: (Note 2)
Administration fees............................................. 94,723
Investment advisory fees...................................... 756,782
Custodian..................................................... 38,210
Other......................................................... 165,666
--------------
Total Liabilities......................................... 14,556,011
--------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS.........
$2,379,227,380 $1,138,265,755
Cost of Investments.............................................. $1,940,680,587
==============
See notes to financial statements.
<PAGE>
Statement of Operations
For the six months ended April 30, 1997 (unaudited)
- ------------------------------------------------------------------------------
Growth &
Income
Portfolio
-------------
INVESTMENT INCOME:
Dividend......................................................... $ 19,379,782
Interest......................................................... 5,104,694
------------
Total investment income.................................... 24,484,476
------------
EXPENSES: (Note 2)
Investment Advisory fees......................................... 4,559,163
Administration fees.............................................. 569,895
Custodian fees................................................... 83,604
Amortization of organization costs (Note 1)...................... 3,962
Professional fees................................................ 42,027
Trustees fees and expenses....................................... 22,796
Other............................................................ 75,569
------------
Total expenses............................................. 5,357,016
------------
Net investment income.......................................... 19,127,460
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on:
Investments.................................................... 156,531,502
Change in net unrealized appreciation/depreciation on:
Investments.................................................... 51,491,981
------------
Net realized and unrealized gain (loss) on investments........... 208,023,483
------------
Net increase in net assets from operations....................... $ 227,150,943
============
See notes to financial statements.
<PAGE>
Statement of Changes in Net Assets For the periods indicated (unaudited)
- ------------------------------------------------------------------------------
Growth &
Capital
Income
Growth
Portfolio
Portfolio
----------------------------------
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11/01/96 Year 11/01/96
Year
Through Ended Through
Ended
04/30/97 10/31/96 04/30/97
10/31/96
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INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income......... $ 19,127,460 $ 46,623,872
$6,372,255 $ 12,451,547
Net realized gain (loss) on investments and futures
transactions.................... 156,531,502 163,677,802
85,494,781 132,963,967
Change in net unrealized appreciation/depreciation
on investments and futures............ 51,491,981 163,237,283
(32,681,818) 71,608,504
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Increase (decrease) in net assets from operations...
227,150,943 373,538,957
59,185,218 217,024,018
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TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions.................... 605,163,112 470,616,913
631,520,095 1,114,082,444
Withdrawals... .................. (545,434,616) (605,973,572)
(642,571,891) (1,260,399,848)
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Net increase (decrease) from transactions in
investors' beneficial interests...... 59,728,496 (135,356,659)
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(11,051,796) (146,317,404)
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Net increase (decrease) in net assets.....6,879,439 238,182,298
48,133,422 70,706,614
NET ASSETS:
Beginning of period..................... 2,092,347,941 1,854,165,643
1,090,132,333 1,019,425,719
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End of period........................ $ 2,379,227,380 $ 2,092,347,941
$1,138,265,755 $ 1,090,132,333
==============
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===============
See notes to financial statements.
<PAGE>
Vista Mutual Funds
Notes to Financial Statements April 30, 1997 (unaudited)
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1. Organization and Significant Accounting Policies -- Growth and Income
Portfolio ("GIP") and Capital Growth Portfolio ("CGP"), (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
the CGP commenced operations on November 29, 1993.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
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 supplied by pricing services or by matrix pricing
systems of a major dealer in bonds. Short-term debt securities with 61 days
or more to maturity at time of purchase are valued, through the 61st day
prior to maturity, at market value based on quotations obtained from market
makers or other appropriate sources; thereafter, the value on the 61st day
is amortized on a straight-line basis over the remaining number of days to
maturity. Short-term investments with 60 days or less to maturity at time of
purchase are valued at amortized cost, which approximates market. 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. Repurchase agreements -- It is the Portfolios' policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Trusts' custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian 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 an insolvency proceeding, realization of the collateral by the
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Trusts may be delayed or limited.
C. 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 futures contract is marked to market 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.
The GIP 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 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.
As of April 30, 1997, the Portfolios had no outstanding futures contracts.
D. Written options -- When a Portfolio writes an option on a futures
contract, an amount equal to the premium received by the Portfolio is
included in the portfolio's Statement of Assets and Liabilities as an asset
and corresponding liability. The amount of the liability is adjusted daily
to reflect the current market value of the written options and the change is
recorded in a corresponding unrealized gain or loss account. When a written
option expires on its stipulated expiration date, or when a closing
transaction is entered into, the related liability is extinguished and the
Portfolio realizes a gain (or loss if the cost of the closing transaction
exceeds the premium received when the option was written).
<PAGE>
Vista Mutual Funds
Notes to Financial Statements April 30, 1997 (unaudited) (continued)
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The GIP writes options on stock index securities futures. These options are
settled for cash and subject the Portfolio to market risk in excess of the
amounts that are reflected in the Statement of Assets and Liabilities. The
Portfolio, however, is not subject to credit risk on written options as the
counterparty has already performed its obligation by paying a premium at the
inception of the contract.
As of April 30, 1997 the Portfolios had no outstanding written options.
E. 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.
F. Organization costs -- Organization and initial registration costs
incurred in connection with establishing the Portfolios have been deferred
and are being amortized on a straight-line basis over a sixty month period
beginning at the commencement of operations of each Portfolio.
G. Federal income taxes -- The Portfolios intend to continue to qualify as
partnerships and therefore net income and net realized gains are taxed to
the partners. Accordingly, no tax provisions are recorded by the Portfolios.
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.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Adviser") acts as
the Investment Adviser to the Portfolios. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Adviser,
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Chase supervises the investments of the Portfolios and for such services is
paid a fee.
The fee is computed daily and paid monthly at an annual rate equal to 0.40%
of the Portfolios' average daily net assets.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sub-investment adviser to each of the Portfolios pursuant to a
Sub-Investment Advisory Agreement between CAM and Chase. CAM is a wholly
owned subsidiary of Chase and is entitled to receive a fee, payable by Chase
from its advisory fee, at an annual rate equal to 0.20% of each Portfolio's
average daily net assets.
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, Chase (the
"Administrator") provides certain administration services to the Trusts. For
these services and facilities, the Administrator receives from each
Portfolio a fee computed at the annual rate equal to 0.05% of the respective
Portfolio's average daily net assets.
<PAGE>
Vista Mutual Funds
Notes to Financial Statements April 30, 1997 (unaudited) (continued)
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3. Investment Transactions -- For the period ended April 30, 1997, purchases and
sales of investments (excluding short-term investments) were as follows:
GIP CGP
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Purchases (excluding U.S. Government)......... $ 669,083,738 $ 382,031,565
Sales (excluding U.S. Government)............. 443,147,228 366,932,401
Purchases of U.S. Government................. -- --
Sales of U.S. Government..................... 58,099,444 --
The portfolio turnover rates of GIP and CGP for the year end ended were 21% and
34%, respectively. The average commission rates paid per share were $.05958 and
$.05904 for GIP and CGP, respectively.
4. Retirement Plan -- The Portfolios have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Portfolios
who will have served as an independent trustee for at least five years at the
time of retirement. Benefits under this plan are based on compensation and years
of service. Pension expenses for the period ended April 30, 1997, included in
Trustees Fees and Expenses in the Statement of Operations, and accrued pension
liability included in other accrued liabilities, respectively, in the Statement
of Assets and Liabilities were as follows:
Accrued
Pension Pension
Expenses Liability
-------- -------
GIP...................................................... $11,640 $73,972
CGP......................... ............................. 6,194 40,664
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