<PAGE>
CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC.
1995 SEMI-ANNUAL REPORT
DEAR CMIA SHAREHOLDER:
The 0.5 percent increase in short-term interest rates in February 1995 marked
the end of a series of rate hikes designed by the Fed to rein in a rapidly
growing economy.
But perception changed during the first quarter from one of an economy that
was growing too rapidly to one that was not growing at all.
Buoyed by the positive changes in Federal Reserve policy, the bond market
rallied. The good news signaled by the bond market along with the prospect
for healthy corporate earnings, ignited the stock market.
Connecticut Mutual Investment Accounts (CMIA) benefitted from the upturns,
with three of its funds turning in double-digit increases as reported by
Lipper Analytical Services, Inc.
Riding on the tail of interest rate increases, the CMIA Liquid Account posted
a 4.63 percent increase for the 12 months ended June 30, 1995. This compared
with a 4.91 percent increase for the Lipper category average.
The CMIA Income Account posted an 8.06 percent increase for the twelve month
period, comparing favorably with the 7.26 percent increase in the category
average. The above average results stemmed from the Account's position in
non-callable high-grade corporate bonds that are longer than the average
duration.
The CMIA Government Securities Account was positioned for the decreasing
interest rate environment, with maturities longer than the average of most
funds. The Account turned in an 11.65 percent increase for the 12 month
period ended June 30, 1995, according to Lipper, compared with the category
average increase of 10.85 percent.
The CMIA Total Return Account turned in a 15.53 percent increase for the
year, in line with the 15.99 percent increase for the category average of
most funds. As of June 30, 1995, the Account consisted of 39 percent stocks,
36 percent bonds and 26 percent cash.
The CMIA Growth Account advanced 22.43 percent for the period, outperforming
the Lipper category average of 22.25 percent.
While these results show a marked improvement from last year's returns and
the outlook remains good, the economy is still unsettled.
Although some investors have engaged in profit-taking during these heady
times, our advice remains the same -- that a long-term stance generally
produces greatest results for investors seeking long-term growth of capital.
Short-term moves are unpredictable but, over the long-term the markets have
continued to produce positive results.
We, too, plan to stay the course with our consistently applied, value
oriented investment strategy that has produced solid results during both bull
and bear financial markets. While past performance does not guarantee future
results, we are confident that this approach will continue to reward patient
investors over time.
ECONOMIC FORECAST: THIRD AND FOURTH QUARTERS 1995
All the right elements were in place to produce the strong showings of stocks
and bonds in the first half of 1995. The economy slowed, interest rates
ceased their upward climb, inflation stalled and corporate earnings were
strong.
It appears that the Fed may have succeeded in engineering a soft landing for
the economy with moderate economic growth and low inflation. Although, this
seems to be an ideal situation for investors, there are no guarantees that a
recession will not follow.
On average, stocks are somewhat overvalued by historical standards, dividend
ratios are low and price/earnings ratios are high. These indicators would
suggest caution in the short-term.
Despite this cautionary note, we are optimistic that moderate economic growth
and low inflation will continue, fueling strong demand for stocks and bonds
over time. Inflation is expected to hover around 3 percent, dropping even
lower if the economy slows further.
A slowing of the economy could prompt the Fed to lower interest rates even
further, spurring a continuation of the bond market rally in the second half
of 1995.
SUMMARY
Both the stock and bond markets have picked up a good head of steam that we
expect to continue for the foreseeable future. But amid good news always
lurks the chance for a negative surprise.
We believe that by sticking to a long-term investment discipline[|nb|][cad 228]
rather than chasing the latest investment fad[|nb|][cad 228] you may achieve
favorable returns over the long-term.
As a CMIA investor, you know that your money is in a quality fund with a
solid track record. You can feel confident that our investment professionals
continue to pursue a conservative management philosophy designed to provide
you with highly competitive returns, as well as peace of mind.
If you want additional information on your investment options, talk to your
registered representative or call 1-800-234-5606, and press one, to find out
more.[ql]
David E. Sams, Jr.
PRESIDENT AND CHIEF EXECUTIVE OFFICER CONNECTICUT MUTUAL
LIFE INSURANCE COMPANY
T H E C M I A A C C O U N T S
LIQUID
The objective of this Account is to achieve as high a level of current income
as possible consistent with safety of principal and maintenance of liquidity
by investing in money market instruments.
GOVERNMENT SECURITIES
This Account seeks to provide a high level of current income with a high
degree of safety of principal by investing in securities issued by, or
guaranteed as to principal and interest by, the U.S. Government, its
agencies, authorities or instrumentalities and by obligations that are fully
collateralized or otherwise fully backed by U.S. Government Securities.*
INCOME
The objective of this Account is to obtain a high level of current income
consistent with prudent investment risk and preservation of capital, by
investing primarily in fixed-income debt securities that generally mature
within five years of purchase.
TOTAL RETURN
This Account attempts to maximize over time the return achieved from capital
appreciation and income by varying the allocation of the Account's assets
among stocks, corporate bonds, securities issued by the U.S. Government, and
money market instruments of the type acquired respectively by the Growth
Account, the Government Securities Account, the Income Account and the Liquid
Account.
GROWTH
This Account invests in common stocks with low price-earnings ratios and
better than anticipated earnings, with the goal of long-term growth of
capital.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE.
LIPPER RANKINGS DO NOT TAKE INTO CONSIDERATION THE EFFECT OF SALES CHARGES
AND HAD SALES CHARGES BEEN INCLUDED, THE PERFORMANCE RANKINGS WOULD HAVE BEEN
LESS FAVORABLE.
* THE GOVERNMENT BACKING APPLIES ONLY TO THE TIMELY PAYMENT OF PRINCIPAL AND
INTEREST AND DOES NOT APPLY TO THE SHARES OF THE FUND.
THIS MATERIAL IS INTENDED FOR USE ONLY WHEN ACCOMPANIED OR PRECEDED BY A
PROSPECTUS.
<PAGE>
PERFORMANCE -- TOTAL RETURN*
SALES CHARGE ADJUSTED PERFORMANCE As of 6/30/95* -- AFTER EXPENSES
<TABLE>
<CAPTION>
AVERAGE ANNUALIZED
30 DAY
CURRENT YIELD
ACCOUNTS ONE YEAR FIVE YEAR SINCE INCEPTION AS OF 6/30/95
<S> <C> <C> <C> <C>
LIQUID** 4.63% 4.04% 6.50% 5.09%
GOVERNMENT SECURITIES 7.18% 7.73% 8.98% 5.46%
INCOME 3.74% 6.61% 7.81% 6.21%
TOTAL RETURN 9.75% 10.72% 11.78%
GROWTH 16.31% 12.89% 14.06%
</TABLE>
Sales Charge Adjusted Performance assumes the current initial sales charge
reduces portfolio performance and was paid at the beginning of each period
shown. The current maximum initial sales charges are 4.00% for the Government
Securities and Income Accounts and 5.00% for the Total Return and Growth
Accounts. The Liquid Account has no initial sales charge.
ACTUAL PORTFOLIO PERFORMANCE As of 6/30/95* -- AFTER EXPENSES
<TABLE>
<CAPTION>
AVERAGE ANNUALIZED
7-DAY
CURRENT YIELD
ACCOUNTS ONE YEAR FIVE YEAR SINCE INCEPTION AS OF 6/30/95
<S> <C> <C> <C> <C>
LIQUID** 4.63% 4.04% 6.50% 5.11%
GOVERNMENT SECURITIES 11.65% 8.62% 9.43%
INCOME 8.06% 7.48% 8.26%
TOTAL RETURN 15.53% 11.86% 12.37%
GROWTH 22.43% 14.06% 14.66%
</TABLE>
Actual Portfolio Performance assumes the initial sales charge is paid by a
client in a prior period and is not reflected on this table.
All portfolios became effective September 16, 1985 except for the Liquid Account
which was first offered to the public on March 31, 1982.
*Total Return figures include reinvestment of all dividends and capital gains.
Performance data quoted represents past performance. The investment return and
principal values of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
**There can be no assurance that the Liquid Account will be able to maintain a
stable net asset value of $1.00 per share. An investment in the Liquid Account
is neither insured nor guaranteed by the U.S. Government.
<PAGE>
SCHEDULE OF INVESTMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
June 30, 1995 (Unaudited)
LIQUID ACCOUNT
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
COMMERCIAL PAPER
(96.7% OF NET ASSETS)
American Broadcasting Companies,
Inc.
$ 1,500,000 5.62%, due 10/4/95 $ 1,477,754
American Express Credit Corp.
2,033,000 6.10%, due 7/10/95 2,033,000
784,000 5.75%, due 11/30/95 784,000
600,000 5.70%, due 12/15/95 600,000
American Home Products Corp.
1,035,000 5.97%, due 8/4/95 1,029,164
Banc One Corp.
1,000,000 5.92%, due 8/9/95 993,587
Bank of America
1,000,000 5.87%, due 11/10/95 978,477
2,000,000 5.71%, due 12/4/95 1,950,513
Beneficial Corp.
1,000,000 5.94%, due 8/18/95 992,080
Cargill, Inc.
2,000,000 5.67%, due 10/12/95 1,967,555
Corporate Asset Funding Co., Inc.
1,150,000 6.10%, due 8/24/95 1,139,478
Corporate Receivables Corp.
1,500,000 5.80%, due 8/3/95 1,492,025
1,000,000 5.95%, due 8/23/95 991,240
Dayton Hudson Corp.
500,000 5.97%, due 7/17/95 498,673
2,500,000 5.80%, due 8/1/95 2,487,514
Electronic Data Systems Corp.
1,200,000 5.90%, due 9/18/95 1,184,463
Ford Motor Credit Co.
2,000,000 6.07%, due 7/20/95 2,000,000
1,300,000 5.55%, due 1/12/96 1,260,919
General Electric Capital Corp.
1,160,000 5.97%, due 8/2/95 1,153,844
1,000,000 6.17%, due 10/11/95 982,518
General Electric Co.
925,000 5.87%, due 8/22/95 917,157
Golden Peanut Co.
750,000 5.95%, due 8/7/95 745,414
International Lease Finance Corp.
1,000,000 6.00%, due 7/20/95 996,833
1,000,000 5.72%, due 10/16/95 982,999
Interstate Power Co.
370,000 5.97%, due 7/17/95 369,018
640,000 5.93%, due 7/25/95 637,470
McGraw-Hill Inc.
700,000 6.10%, due 7/28/95 696,798
1,300,000 5.94%, due 8/2/95 1,293,136
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Merrill Lynch & Co., Inc.
$ 750,000 5.93%, due 8/8/95 $ 745,305
725,000 5.95%, due 8/14/95 719,728
860,000 5.95%, due 8/15/95 853,604
900,000 5.91%, due 8/28/95 891,431
Mitsubishi International Corp.
2,800,000 5.90%, due 8/4/95 2,784,398
Monsanto Co.
1,685,000 5.85%, due 8/29/95 1,668,845
Morgan (J.P.) & Company, Inc.
1,700,000 5.84%, due 9/7/95 1,681,247
National Rural Utilities
Cooperative Finance Corp.
425,000 5.93%, due 9/1/95 420,660
1,000,000 5.88%, due 9/6/95 989,057
1,100,000 5.95%, due 9/6/95 1,087,819
700,000 5.90%, due 9/29/95 689,675
Norwest Corp.
1,300,000 6.01%, due 7/24/95 1,295,008
2,000,000 5.73%, due 9/25/95 1,972,623
NYNEX Corp.
2,000,000 5.71%, due 9/5/95 1,979,063
Penney (J.C.) Funding Corp.
1,000,000 5.94%, due 7/20/95 996,865
1,570,000 5.93%, due 7/21/95 1,564,828
PHH Corp.
1,000,000 5.85%, due 7/12/95 998,213
Philip Morris Companies Inc.
1,100,000 5.99%, due 7/31/95 1,094,509
Potomac Electric Power Co.
595,000 5.97%, due 8/7/95 591,349
U.S. Bancorp
900,000 6.04%, due 7/7/95 899,094
U S West Communications, Inc.
1,480,000 6.07%, due 7/5/95 1,479,002
Wal-Mart Stores Inc.
600,000 6.15%, due 7/3/95 599,795
Xerox Corp.
1,200,000 5.90%, due 8/10/95 1,192,133
1,100,000 5.93%, due 8/22/95 1,090,578
850,000 5.94%, due 8/25/95 842,286
------------
TOTAL COMMERCIAL PAPER
(COST $61,762,744) 61,762,744
------------
U.S. AGENCY SHORT-TERM OBLIGATIONS
(3.1% OF NET ASSETS)
Student Loan Marketing Assn.
5.69%, due 5/14/96 (Cost
2,000,000 $2,000,000) 2,000,000
------------
TOTAL INVESTMENTS
(COST $63,762,744) $ 63,762,744
------------
------------
</TABLE>
1 The accompanying notes are an integral part of these financial statements.
<PAGE>
GOVERNMENT SECURITIES ACCOUNT INCOME ACCOUNT
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(98.5% OF NET ASSETS)
Federal National Mortgage Assn.
$ 1,174,238 7.00%, 2019 $ 1,177,537
Government National Mortgage Assn.
81,101 11.50%, 1998 86,601
45,095 9.50%, 2001 47,251
50,138 7.25%, 2005 51,297
324,599 7.50%, 2006 328,527
200,662 8.00%, 2006 206,766
524,312 8.00%, 2007 541,022
180,541 8.25%, 2008 186,777
84,503 9.00%, 2008 89,548
562,233 9.00%, 2009 596,423
10,111 13.50%, 2010 11,425
98,967 13.00%, 2011 111,894
3,439 13.50%, 2011 3,886
64,994 14.00%, 2011 73,890
43,407 15.00%, 2011 50,135
3,718 12.00%, 2012 4,185
108,607 13.50%, 2012 121,962
168,566 15.00%, 2012 194,694
107,161 11.50%, 2013 120,053
45,032 13.00%, 2013 50,914
203,024 13.50%, 2013 229,417
83,119 12.00%, 2014 93,561
284,277 12.50%, 2014 322,475
139,709 13.00%, 2014 157,958
1,414 13.50%, 2014 1,598
534,679 8.50%, 2016 559,878
445,915 6.50%, 2017 453,023
409,588 10.00%, 2019 446,729
101,689 12.50%, 2019 114,175
2,177,473 6.50%, 2023 2,091,724
1,860,980 7.00%, 2023 1,831,316
952,018 7.00%, 2024 936,843
500,000 8.00%, TBA 511,875
U.S. Treasury Bond
9,650,000 9.25%, 2016 12,373,133
U.S. Treasury Notes
800,000 9.25%, 1996 814,248
5,000,000 9.375%, 1996 5,138,300
500,000 8.50%, 1997 522,185
3,500,000 8.875%, 1997 3,728,585
6,750,000 9.25%, 1998 7,381,733
2,500,000 7.50%, 2001 2,683,600
2,250,000 11.75%, 2001 2,856,442
3,000,000 7.25%, 2004 3,205,770
------------
TOTAL U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(COST $49,799,117) 50,509,355
------------
REPURCHASE AGREEMENTS*
(.6% OF NET ASSETS)
State Street Bank & Trust Co.
5.50%, due 7/3/95 (Cost
310,000 $310,000) 310,000
------------
TOTAL INVESTMENTS
(COST $50,109,117) $ 50,819,355
------------
------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
CORPORATE BONDS
(83.2% OF NET ASSETS)
AEROSPACE (1.7%)
British Aerospace Finance Inc.
$ 500,000 8.00%, 1997 $ 513,750
Coltec Industries Inc.
250,000 9.75%, 2000 258,750
------------
772,500
------------
AIRLINES (1.2%)
Southwest Airlines Co.
500,000 9.25%, 1998 532,270
------------
AUTO & AUTO RELATED (1.9%)
Burmah Castrol Capital, Ltd.
500,000 7.00%, 1997 508,525
Ford Motor Co.
372,474 6.27%, 2000 370,097
------------
878,622
------------
BANKING (12.8%)
Banco Ganadero SA
400,000 9.75%, 1999 399,500
Bank of Boston Corp.
400,000 10.30%, 2000 402,312
Barnett Banks, Inc.
515,000 8.50%, 1999 543,459
Chemical Banking Corp.
500,000 6.625%, 1998 501,985
Citicorp
500,000 9.46%, 1996 513,500
First Fidelity Bancorporation
500,000 8.50%, 1998 524,650
First Union Corp.
500,000 6.75%, 1998 503,420
First USA Bank of Delaware
500,000 5.05%, 1995 497,375
Home Savings of America
500,000 10.50%, 1997 513,910
Mellon Financial Co.
500,000 6.50%, 1997 502,175
Security Pacific Corp.
500,000 7.75%, 1996 510,345
Shawmut National Corp.
500,000 8.875%, 1996 508,650
------------
5,921,281
------------
BROKER/DEALER (1.3%)
Merrill Lynch & Co., Inc.
600,000 8.25%, 1996 619,440
------------
CHEMICALS (2.2%)
FMC Corp.
250,000 8.75%, 1999 266,190
</TABLE>
*Repurchase agreements are fully collateralized by U.S. Government obligations.
2
<PAGE>
INCOME ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Lyondell Petrochemical Co.
$ 750,000 8.25%, 1997 $ 766,560
------------
1,032,750
------------
COMPUTER BUSINESS EQUIPMENT &
SERVICES (.8%)
Unisys Corp.
350,000 9.75%, 1996 357,875
------------
CONGLOMERATES (.9%)
Tenneco, Inc.
375,000 10.00%, 1998 409,357
------------
ELECTRIC UTILITIES (2.8%)
Consumers Power Co.
250,000 8.75%, 1998 262,042
Long Island Lighting Co.
500,000 8.75%, 1996 508,750
Midwest Power Systems Inc.
500,000 6.25%, 1998 498,210
------------
1,269,002
------------
ELECTRICAL & ELECTRONIC EQUIPMENT
(2.2%)
Electrolux
500,000 7.75%, 1997 511,875
Westinghouse Electric Corp.
500,000 7.75%, 1996 503,065
------------
1,014,940
------------
FINANCIAL SERVICES (15.8%)
Allied Lyons
500,000 6.50%, 1997 501,563
American General Finance Corp.
500,000 8.50%, 1998 529,015
Aristar, Inc.
500,000 6.25%, 1996 499,990
Associates Corp. of North America
500,000 7.40%, 1999 517,540
Avco Financial Services, Inc.
500,000 5.875%, 1997 495,300
Banque Nationale de Paris
205,000 9.875%, 1998 222,683
Beneficial Corp.
500,000 9.125%, 1998 532,105
Chrysler Financial Corp.
500,000 5.08%, 1997 491,280
Countrywide Funding Corp.
500,000 6.57%, 1997 502,010
Discover Credit Corp.
250,000 8.73%, 1996 256,215
Fleet Mortgage Group, Inc.
500,000 6.125%, 1997 497,035
General Motors Acceptance Corp.
500,000 5.65%, 1997 491,320
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Green Tree Financial Corp.
$ 250,000 7.70%, 2019 $ 258,905
Household Financial Corporation
Ltd.
250,000 6.00%, 1998 246,907
Household International
Netherlands B.V.
250,000 6.00%, 1999 245,913
Norwest Financial, Inc.
500,000 6.50%, 1997 502,450
Transamerica Finance Group, Inc.
500,000 7.42%, 1998 512,275
------------
7,302,506
------------
FOOD & BEVERAGES (4.5%)
ConAgra, Inc.
500,000 9.75%, 1997 533,695
Grand Metropolitan Investment
Corp.
500,000 8.125%, 1996 510,105
Nabisco Brands Inc.
500,000 8.00%, 2000 523,780
Seagram Company Ltd.
500,000 9.75%, 2000 512,335
------------
2,079,915
------------
INSURANCE (.9%)
SunAmerica Inc.
370,000 9.00%, 1999 395,223
------------
LEASING (2.2%)
Penske Truck Leasing Co.
500,000 7.75%, 1999 513,675
U.S. Leasing International Inc.
500,000 7.00%, 1997 507,250
------------
1,020,925
------------
LEISURE & ENTERTAINMENT (.5%)
Blockbuster Entertainment Corp.
250,000 6.625%, 1998 248,398
------------
MACHINERY & EQUIPMENT (1.1%)
Caterpillar Financial Services
Corp.
500,000 6.85%, 1997 505,230
------------
MANUFACTURING (.6%)
First Brands Corp.
265,000 9.125%, 1999 274,164
------------
MORTGAGE-BACKED SECURITIES (5.8%)
American Southwest Financial Corp.
1,624,603 8.25%, 2016 1,627,649
GE Capital Mortgage Services, Inc.
152,509 6.50%, 2024 152,079
Housing Securities, Inc.
227,396 7.25%, 2012 227,112
</TABLE>
3 The accompanying notes are an integral part of these financial statements.
<PAGE>
INCOME ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Ryland Mortgage Securities Corp.
$ 426,648 8.339%, 2030 $ 423,182
Salomon Brothers, Inc.
263,007 0.00%, 2017 187,637
177,728 12.50%, 2017 43,543
------------
2,661,202
------------
OFFICE EQUIPMENT (.6%)
Xerox Corp.
270,000 9.20%, 1999 277,104
------------
OIL & GAS (8.6%)
Arkla, Inc.
505,000 9.875%, 1997 525,200
BP America Inc.
500,000 8.875%, 1997 529,570
Bridas Corp.
250,000 12.50%, 1999 225,625
Coastal Corp.
500,000 8.75%, 1999 532,955
El Paso Natural Gas Co.
250,000 6.90%, 1997 252,230
Empresa Columbia de Petroleos
250,000 7.25%, 1998 248,125
Florida Gas Transmission Co.
500,000 7.75%, 1997 513,675
Occidental Petroleum Corp.
500,000 6.43%, 1997 499,055
Phillips Petroleum Co.
474,163 7.53%, 1998 483,461
Transcontinental Gas Pipe Line
Corp.
150,000 9.00%, 1996 155,065
------------
3,964,961
------------
PAPER & FOREST PRODUCTS (1.9%)
Celulosa Arauco y Constitucion SA
350,000 7.25%, 1998 350,875
Georgia-Pacific Corp.
500,000 9.85%, 1997 529,880
------------
880,755
------------
PRINTING & PUBLISHING (2.2%)
Reed Publishing USA Inc.
500,000 7.20%, 1997 508,375
Time Warner Inc.
500,000 7.45%, 1998 504,035
------------
1,012,410
------------
RETAIL TRADE (2.7%)
Kmart Corp.
500,000 8.61%, 1997 516,370
Sears, Roebuck & Co.
200,000 9.44%, 1996 204,900
500,000 8.39%, 1999 530,580
------------
1,251,850
------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
SAVINGS & LOAN (1.1%)
Golden West Financial Corp.
$ 500,000 8.625%, 1998 $ 528,925
------------
TELECOMMUNICATIONS (1.3%)
Tele-Communications, Inc.
615,000 5.28%, 1996 607,522
------------
TELEPHONE UTILITIES (2.3%)
GTE Corp.
500,000 8.85%, 1998 527,595
MCI Communications Corp.
500,000 7.625%, 1996 508,645
------------
1,036,240
------------
TOBACCO (2.2%)
B.A.T Capital Corp.
500,000 6.66%, 2000 488,900
Philip Morris Companies Inc.
500,000 8.75%, 1996 516,130
------------
1,005,030
------------
TRANSPORTATION (1.1%)
Federal Express Corp.
500,000 9.75%, 1996 513,670
------------
TOTAL CORPORATE BONDS
(COST $39,041,898) 38,374,067
------------
U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(10.7% OF NET ASSETS)
Federal Home Loan Mortgage Corp.
169,307 5.50%, 1997 166,820
505,197 5.50%, 1998 497,777
Federal National Mortgage Assn.
872,111 7.50%, 2008 886,553
873,484 7.00%, 2009 875,667
816,947 8.00%, 2009 840,173
250,000 6.00%, 2019 242,968
Government National Mortgage Assn.
397,717 7.00%, 2009 399,578
46,223 13.00%, 2014 52,261
U.S. Treasury Note
1,000,000 5.25%, 1998 981,090
------------
TOTAL U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(COST $4,889,313) 4,942,887
------------
COMMERCIAL PAPER
(4.3% OF NET ASSETS)
Wal-Mart Stores Inc.
6.15%, due 7/3/95 (COST
$1,984,322) 1,984,322
1,985,000
------------
TOTAL INVESTMENTS
(COST $45,915,533) $ 45,301,276
------------
------------
</TABLE>
4
<PAGE>
TOTAL RETURN ACCOUNT
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
COMMON STOCKS
(38.7% OF NET ASSETS)
AEROSPACE (4.4%)
22,600 General Dynamics Corp. $ 1,002,875
28,100 General Motors Corp. Class H 1,109,950
35,371 Lockheed Martin Corp. 2,232,794
37,600 Loral Corp. 1,945,800
19,000 McDonnell Douglas Corp. 1,458,250
26,900 Rockwell International Corp. 1,230,675
------------
8,980,344
------------
AIRLINES (1.8%)
16,100 AMR Corp. 1,201,462
22,300 Delta Air Lines, Inc. 1,644,625
25,100 Northwest Airlines Corp. 887,912
------------
3,733,999
------------
BANKING (2.1%)
18,600 Bank of New York Co., Inc. 750,975
26,500 Chase Manhattan Corp. 1,245,500
21,300 Morgan (J.P.) & Company, Inc. 1,493,663
4,600 Wells Fargo & Co. 829,150
------------
4,319,288
------------
BUILDING MATERIALS & CONSTRUCTION
(.1%)
11,500 USG Corp. 273,125
------------
CHEMICALS (2.0%)
13,000 FMC Corp. 874,250
28,800 Grace (W.R.) & Co. 1,767,600
15,700 Monsanto Co. 1,414,963
------------
4,056,813
------------
CONGLOMERATES (1.0%)
21,000 AlliedSignal Inc. 934,500
17,600 Textron, Inc. 1,023,000
------------
1,957,500
------------
DRUGS & COSMETICS (.4%)
9,500 American Home Products Corp. 735,062
------------
ELECTRIC UTILITIES (1.8%)
37,300 FPL Group, Inc. 1,440,712
45,600 Illinova Corp. 1,157,100
41,000 Unicom Corp. 1,091,625
------------
3,689,437
------------
ELECTRICAL & ELECTRONIC EQUIPMENT
(.5%)
18,500 Micron Technology Inc. 1,015,188
------------
FOOD & BEVERAGES (.9%)
60,422 Archer Daniels Midland Co. 1,125,360
30,200 Ralcorp Holdings, Inc. 690,825
------------
1,816,185
------------
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
HEALTH SERVICES & HOSPITAL SUPPLIES
(1.5%)
49,100 Baxter International Inc. $ 1,786,013
28,700 Columbia Healthcare Corp. 1,241,275
------------
3,027,288
------------
INSURANCE (3.4%)
26,500 Aetna Life & Casualty Co. 1,666,187
35,100 American General Corp. 1,184,625
18,500 Lincoln National Corp. 809,375
15,300 St. Paul Companies Inc. 753,525
36,100 TIG Holdings, Inc. 830,300
39,200 Travelers Group 1,715,000
------------
6,959,012
------------
LEISURE RELATED (.8%)
19,300 Grand Casinos, Inc. 682,738
37,675 Mattel, Inc. 979,550
------------
1,662,288
------------
MACHINERY & EQUIPMENT (1.3%)
15,700 Caterpillar Inc. 1,008,725
33,390 Mark IV Industries, Inc. 717,885
25,650 Parker-Hannifin Corp. 929,812
------------
2,656,422
------------
MANUFACTURING (.8%)
25,300 Black & Decker Corp. 781,138
18,000 Philips Electronics NV 769,500
------------
1,550,638
------------
METALS & MINING (1.1%)
19,800 IMC Global Inc. 1,071,675
Potash Corporation of Saskatchewan
19,800 Inc. 1,106,325
------------
2,178,000
------------
MISCELLANEOUS (1.5%)
57,300 Dial Corp. 1,418,175
30,500 Premark International, Inc. 1,582,188
------------
3,000,363
------------
OFFICE EQUIPMENT (.6%)
11,200 Xerox Corp. 1,313,200
------------
OIL & GAS (3.4%)
18,300 Amoco Corp. 1,219,238
26,400 Chevron Corp. 1,230,900
14,800 Mobil Corp. 1,420,800
71,200 Panhandle Eastern Corp. 1,735,500
10,400 Royal Dutch Petroleum Co. 1,267,500
------------
6,873,938
------------
PAPER & FOREST PRODUCTS (1.8%)
9,500 Georgia-Pacific Corp. 824,125
31,200 Scott Paper Co. 1,544,400
</TABLE>
5 The accompanying notes are an integral part of these financial statements.
<PAGE>
TOTAL RETURN ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
22,000 Willamette Industries, Inc. $ 1,221,000
------------
3,589,525
------------
RETAIL TRADE (2.5%)
45,900 American Stores Co. 1,290,937
18,900 Eckerd Corp. 604,800
49,700 Kroger Co. 1,335,688
30,400 Sears, Roebuck & Co. 1,820,200
------------
5,051,625
------------
TECHNOLOGY (2.0%)
9,800 Applied Materials Inc. 848,925
17,100 Compaq Computer Corp. 775,912
Computer Associates International,
13,200 Inc. 894,300
International Business Machines
15,900 Corp. 1,526,400
------------
4,045,537
------------
TELEPHONE UTILITIES (1.7%)
31,400 Ameritech Corp. 1,381,600
31,000 GTE Corp. 1,057,875
27,200 NYNEX Corp. 1,094,800
------------
3,534,275
------------
TOBACCO (1.3%)
28,800 American Brands, Inc. 1,144,800
18,700 Philip Morris Companies Inc. 1,390,812
------------
2,535,612
------------
TOTAL COMMON STOCKS
(COST $64,331,079) 78,554,664
------------
PRINCIPAL CORPORATE BONDS
AMOUNT (20.8% OF NET ASSETS)
AEROSPACE (.4%)
British Aerospace Finance Inc.
$ 500,000 8.00%, 1997 513,750
Coltec Industries, Inc.
250,000 9.75%, 2000 258,750
------------
772,500
------------
AUTO & AUTO RELATED (.2%)
Burmah Castrol Capital, Ltd.
500,000 7.00%, 1997 508,525
------------
BANKING (2.5%)
Bank of Boston Corp.
500,000 10.30%, 2000 502,890
BankAmerica Corp.
500,000 6.00%, 1997 496,525
Chemical Banking Corp.
250,000 10.125%, 2000 285,820
First Fidelity Bancorporation
500,000 8.50%, 1998 524,650
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
First USA Bank of Delaware
$ 500,000 5.05%, 1995 $ 497,375
750,000 5.35%, 1996 713,550
Fleet Financial Group, Inc.
250,000 9.90%, 2001 285,345
Marshall & Ilsley Corp.
500,000 6.95%, 1997 506,970
Mellon Financial Co.
400,000 6.50%, 1997 401,740
Shawmut National Corp.
750,000 8.875%, 1996 762,975
------------
4,977,840
------------
CHEMICALS (1.3%)
FMC Corp.
500,000 8.75%, 1999 532,380
Lyondell Petrochemical Co.
1,100,000 8.25%, 1997 1,124,288
Morton International, Inc.
500,000 9.25%, 2020 613,510
PPG Industries, Inc.
250,000 9.00%, 2021 296,102
------------
2,566,280
------------
COMPUTER BUSINESS EQUIPMENT &
SERVICES (.4%)
Unisys Corp.
750,000 9.75%, 1996 766,875
------------
CONGLOMERATES (.5%)
Tenneco Credit Corp.
500,000 9.25%, 1996 517,255
Tenneco, Inc.
375,000 10.00%, 1998 409,358
------------
926,613
------------
DRUGS & COSMETICS (.5%)
Procter & Gamble Co.
250,000 9.36%, 2021 304,637
Roche Holdings Inc.
950,000 2.75%, 2000 808,688
------------
1,113,325
------------
ELECTRIC UTILITIES (.7%)
Hydro-Quebec
500,000 9.375%, 2030 595,605
Long Island Lighting Co.
500,000 8.75%, 1996 508,750
Public Service Co. of New
Hampshire
250,000 8.875%, 1996 254,353
------------
1,358,708
------------
</TABLE>
6
<PAGE>
TOTAL RETURN ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
ELECTRICAL & ELECTRONIC EQUIPMENT
(.5%)
Electrolux
$ 500,000 7.75%, 1997 $ 511,875
Westinghouse Electric Corp.
500,000 7.75%, 1996 503,065
------------
1,014,940
------------
FINANCIAL SERVICES (5.3%)
American General Finance Corp.
500,000 7.70%, 1997 514,585
500,000 8.50%, 1998 529,015
Aristar, Inc.
500,000 6.25%, 1996 499,990
250,000 8.125%, 1997 259,777
Associates Corp. of North America
500,000 6.75%, 1999 503,895
Avco Financial Services, Inc.
500,000 5.875%, 1997 495,300
Countrywide Funding Corp.
250,000 6.57%, 1997 251,005
500,000 6.085%, 1999 491,290
Discover Credit Corp.
500,000 8.73%, 1996 512,430
Fleet Mortgage Corp.
1,000,000 6.125%, 1997 994,070
250,000 6.50%, 1999 248,640
Ford Motor Credit Co.
500,000 8.00%, 1997 518,145
500,000 6.25%, 1998 498,710
General Motors Acceptance Corp.
1,000,000 5.65%, 1997 982,640
750,000 7.75%, 1997 766,320
Green Tree Financial Corp.
500,000 8.00%, 2020 521,560
Household Financial Corporation
Ltd.
250,000 6.00%, 1998 246,908
Household International
Netherlands B.V.
500,000 6.00%, 1999 491,825
ITT Financial Corp.
250,000 8.75%, 2006 268,993
Norwest Financial, Inc.
500,000 6.50%, 1997 502,450
Transamerica Finance Corp.
500,000 6.75%, 1997 503,965
250,000 6.80%, 1999 252,465
------------
10,853,978
------------
FOOD & BEVERAGES (1.1%)
Bass America Inc.
250,000 6.75%, 1999 252,217
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
ConAgra, Inc.
$ 500,000 9.75%, 1997 $ 533,695
Nabisco Brands Inc.
500,000 8.00%, 2000 523,780
Seagram Company Ltd.
950,000 9.75%, 2000 973,436
------------
2,283,128
------------
INSURANCE (.2%)
SunAmerica Inc.
450,000 9.00%, 1999 480,677
------------
LEASING (.8%)
Penske Truck Leasing Co.
750,000 7.75%, 1999 770,513
PHH Corp.
350,000 6.50%, 2000 348,709
U.S. Leasing International Inc.
500,000 7.00%, 1997 507,250
------------
1,626,472
------------
LEISURE & ENTERTAINMENT (.2%)
Blockbuster Entertainment Corp.
500,000 6.625%, 1998 496,795
------------
MANUFACTURING (.2%)
Black & Decker Corp.
400,000 6.625%, 2000 394,040
------------
MORTGAGE-BACKED SECURITIES (.3%)
Fleet Mortgage Securities, Inc.
153,076 8.25%, 2023 153,075
Housing Securities, Inc.
363,833 7.25%, 2012 363,379
------------
516,454
------------
OIL & GAS (2.5%)
Arkla, Inc.
750,000 9.875%, 1997 780,000
BP America, Inc.
500,000 8.875%, 1997 529,570
Bridas Corp.
270,000 12.50%, 1999 243,675
Coastal Corp.
500,000 8.125%, 2002 526,220
Norsk Hydro
500,000 8.75%, 2001 549,062
Petroliam Nasional Berhad
500,000 6.875%, 2003 499,920
Phillips Petroleum Co.
948,326 7.53%, 1998 966,922
TransCanada Pipelines Ltd.
500,000 9.875%, 2021 628,375
Transco Energy Co.
250,000 9.625%, 2000 280,565
------------
5,004,309
------------
</TABLE>
7 The accompanying notes are an integral part of these financial statements.
<PAGE>
TOTAL RETURN ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
PAPER & FOREST PRODUCTS (.6%)
Celulosa Arauco y Constitucion SA
$ 500,000 7.25%, 1998 $ 501,250
Georgia-Pacific Corp.
750,000 9.85%, 1997 794,820
------------
1,296,070
------------
PRINTING & PUBLISHING (.5%)
Reed Elsevier, Inc.
400,000 6.625%, 2023 360,388
Time Warner Inc.
700,000 7.45%, 1998 705,649
------------
1,066,037
------------
RETAIL TRADE (.2%)
Sears, Roebuck & Co.
300,000 8.39%, 1999 318,348
------------
SAVINGS & LOAN (.3%)
Golden West Financial Corp.
500,000 10.25%, 1997 531,970
------------
TELECOMMUNICATIONS (.2%)
Tele-Communications, Inc.
400,000 7.15%, 1998 404,412
------------
TELEPHONE UTILITIES (.6%)
GTE Corp.
750,000 8.85%, 1998 791,393
MCI Communications Corp.
500,000 7.125%, 2000 512,780
------------
1,304,173
------------
TOBACCO (.3%)
Philip Morris Companies Inc.
500,000 8.75%, 1996 516,130
------------
TRANSPORTATION (.5%)
Federal Express Corp.
750,000 9.75%, 1996 770,505
250,000 6.25%, 1998 248,115
------------
1,018,620
------------
TOTAL CORPORATE BONDS
(COST $41,824,531) 42,117,219
------------
U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(14.3% OF NET ASSETS)
Federal Home Loan Mortgage Corp.
1,000,000 6.00%, 2007 927,180
Federal National Mortgage Assn.
1,288,885 7.50%, 2008 1,310,229
800,000 6.00%, 2019 777,496
630,973 7.00%, 2022 547,369
Government National Mortgage Assn.
680,968 7.00%, 2009 684,155
979,208 7.50%, 2009 997,871
606,893 8.00%, 2017 625,203
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
$ 209,596 9.00%, 2018 $ 221,496
294,868 9.00%, 2019 310,726
306,072 9.00%, 2021 323,451
258,677 9.00%, 2022 272,588
2,566,997 6.50%, 2023 2,465,909
285,601 8.50%, 2023 296,488
3,705,272 6.50%, 2024 3,559,358
4,599,878 7.00%, 2024 4,526,556
U.S. Treasury Bonds
650,000 7.50%, 2016 707,688
8,250,000 8.75%, 2017 10,144,943
U.S. Treasury Note
300,000 5.75%, 2003 290,859
------------
TOTAL U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(COST $27,188,364) 28,989,565
------------
FOREIGN GOVERNMENT BONDS
(.7% OF NET ASSETS)
Fomento Economico Mexicano
450,000 9.50%, 1997 429,750
Republic of Columbia
300,000 7.125%, 1998 294,750
400,000 8.75%, 1999 414,000
United Mexican States
250,000 6.97%, 2000 180,000
------------
TOTAL FOREIGN GOVERNMENT BONDS
(COST $1,387,071) 1,318,500
------------
COMMERCIAL PAPER
(25.2% OF NET ASSETS)
Armstrong World Industries Inc.
4,100,000 5.97%, due 7/18/95 4,088,441
Beneficial Corp.
1,700,000 5.95%, due 7/17/95 1,695,505
Cargill, Inc.
3,630,000 5.92%, due 7/7/95 3,626,418
Corporate Receivables Corp.
2,000,000 6.00%, due 7/19/95 1,994,000
Dayton Hudson Corp.
2,000,000 6.00%, due 7/21/95 1,993,333
Ford Motor Credit Co.
5,065,000 5.97%, due 7/12/95 5,065,000
1,914,000 5.96%, due 7/17/95 1,914,000
GTE Florida, Inc.
4,000,000 6.00%, due 7/20/95 3,987,333
Hewlett Packard Finance Co.
3,000,000 5.95%, due 7/11/95 2,995,042
Merrill Lynch & Co., Inc.
2,880,000 5.98%, due 7/6/95 2,877,608
4,025,000 5.97%, due 7/13/95 4,016,990
PACCAR Financial Corp.
2,380,000 5.95%, due 7/5/95 2,378,427
3,000,000 5.97%, due 7/14/95 2,993,533
</TABLE>
8
<PAGE>
TOTAL RETURN ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
PHH Corp.
$ 1,605,000 5.97%, due 7/6/95 $ 1,603,669
Public Service Electric and Gas
Co.
3,050,000 5.97%, due 7/10/95 3,045,448
U.S. Central Credit Union
2,885,000 5.98%, due 7/5/95 2,883,083
Xerox Corp.
3,895,000 5.96%, due 7/13/95 3,887,262
------------
TOTAL COMMERCIAL PAPER
(COST $51,045,092) 51,045,092
------------
TOTAL INVESTMENTS
(COST $185,776,137) $202,025,040
------------
------------
</TABLE>
GROWTH ACCOUNT
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
COMMON STOCKS
(90.8% OF NET ASSETS)
AEROSPACE (10.8%)
25,400 General Dynamics Corp. $ 1,127,125
36,000 General Motors Corp. Class H 1,422,000
35,371 Lockheed Martin Corp. 2,232,794
41,700 Loral Corp. 2,157,975
24,500 McDonnell Douglas Corp. 1,880,375
38,400 Rockwell International Corp. 1,756,800
------------
10,577,069
------------
AIRLINES (4.3%)
20,400 AMR Corp. 1,522,350
22,500 Delta Air Lines, Inc. 1,659,375
30,000 Northwest Airlines Corp. 1,061,250
------------
4,242,975
------------
BANKING (5.0%)
18,600 Bank of New York Co., Inc. 750,975
23,800 Chase Manhattan Corp. 1,118,600
27,100 Morgan (J.P.) & Company, Inc. 1,900,388
6,300 Wells Fargo & Co. 1,135,575
------------
4,905,538
------------
BUILDING MATERIALS & CONSTRUCTION
(.4%)
14,800 USG Corp. 351,500
------------
CHEMICALS (4.5%)
14,600 FMC Corp. 981,850
28,700 Grace (W.R.) & Co. 1,761,462
18,800 Monsanto Co. 1,694,350
------------
4,437,662
------------
CONGLOMERATES (2.6%)
24,700 AlliedSignal Inc. 1,099,150
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
24,000 Textron, Inc. $ 1,395,000
------------
2,494,150
------------
DRUGS & COSMETICS (.8%)
9,900 American Home Products Corp. 766,013
------------
ELECTRIC UTILITIES (4.1%)
35,600 FPL Group, Inc. 1,375,050
49,400 Illinova Corp. 1,253,525
52,300 Unicom Corp. 1,392,487
------------
4,021,062
------------
ELECTRICAL & ELECTRONIC EQUIPMENT
(1.2%)
21,000 Micron Technology Inc. 1,152,375
------------
FOOD & BEVERAGES (2.1%)
71,115 Archer Daniels Midland Co. 1,324,517
30,100 Ralcorp Holdings, Inc. 688,538
------------
2,013,055
------------
HEALTH SERVICES & HOSPITAL SUPPLIES
(3.3%)
50,700 Baxter International Inc. 1,844,212
32,700 Columbia Healthcare Corp. 1,414,275
------------
3,258,487
------------
INSURANCE (8.1%)
24,000 Aetna Life & Casualty Co. 1,509,000
51,300 American General Corp. 1,731,375
22,200 Lincoln National Corp. 971,250
22,700 St. Paul Companies Inc. 1,117,975
36,400 TIG Holdings, Inc. 837,200
39,500 Travelers Group 1,728,125
------------
7,894,925
------------
LEISURE RELATED (1.8%)
23,300 Grand Casinos, Inc. 824,238
35,968 Mattel, Inc. 935,168
------------
1,759,406
------------
MACHINERY & EQUIPMENT (3.2%)
17,400 Caterpillar Inc. 1,117,950
38,955 Mark IV Industries, Inc. 837,533
31,100 Parker-Hannifin Corp. 1,127,375
------------
3,082,858
------------
MANUFACTURING (2.0%)
30,000 Black & Decker Corp. 926,250
23,300 Philips Electronics NV 996,075
------------
1,922,325
------------
METALS & MINING (2.7%)
24,400 IMC Global Inc. 1,320,650
Potash Corporation of Saskatchewan
24,100 Inc. 1,346,588
------------
2,667,238
------------
</TABLE>
9 The accompanying notes are an integral part of these financial statements.
<PAGE>
GROWTH ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
MISCELLANEOUS (3.1%)
64,900 Dial Corp. $ 1,606,275
27,600 Premark International, Inc. 1,431,750
------------
3,038,025
------------
OFFICE EQUIPMENT (1.5%)
12,700 Xerox Corp. 1,489,075
------------
OIL & GAS (7.9%)
22,400 Amoco Corp. 1,492,400
32,200 Chevron Corp. 1,501,325
16,700 Mobil Corp. 1,603,200
73,100 Panhandle Eastern Corp. 1,781,812
10,600 Royal Dutch Petroleum Co. 1,291,875
------------
7,670,612
------------
PAPER & FOREST PRODUCTS (3.8%)
10,800 Georgia-Pacific Corp. 936,900
28,200 Scott Paper Co. 1,395,900
24,600 Willamette Industries, Inc. 1,365,300
------------
3,698,100
------------
RETAIL TRADE (6.1%)
55,700 American Stores Co. 1,566,562
21,600 Eckerd Corp. 691,200
52,300 Kroger Co. 1,405,563
38,000 Sears, Roebuck & Co. 2,275,250
------------
5,938,575
------------
TECHNOLOGY (4.8%)
11,700 Applied Materials Inc. 1,013,512
22,100 Compaq Computer Corp. 1,002,787
Computer Associates International,
12,100 Inc. 819,775
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
International Business Machines
19,700 Corp. $ 1,891,200
------------
4,727,274
------------
TELEPHONE UTILITIES (4.1%)
33,000 Ameritech Corp. 1,452,000
36,900 GTE Corp. 1,259,213
32,700 NYNEX Corp. 1,316,175
------------
4,027,388
------------
TOBACCO (2.6%)
28,500 American Brands, Inc. 1,132,875
18,800 Philip Morris Companies Inc. 1,398,250
------------
2,531,125
------------
TOTAL COMMON STOCKS
(COST $71,945,181) 88,666,812
------------
PRINCIPAL COMMERCIAL PAPER
AMOUNT (9.6% OF NET ASSETS)
Armstrong World Industries Inc.
$ 2,420,000 6.03%, due 7/11/95 2,415,946
CSW Credit, Inc.
2,200,000 6.00%, due 7/6/95 2,198,167
International Lease Finance Corp.
1,220,000 6.00%, due 7/5/95 1,219,187
Merrill Lynch & Co., Inc.
2,000,000 6.00%, due 7/7/95 1,998,000
U S West Communications, Inc.
1,540,000 5.97%, due 7/10/95 1,537,701
------------
TOTAL COMMERCIAL PAPER
(COST $9,369,001) 9,369,001
------------
TOTAL INVESTMENTS
(COST $81,314,182) $ 98,035,813
------------
------------
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
A C C O U N T S
1. Aggregate gross unrealized appreciation
(depreciation) as of June 30, 1995, based on
cost for Federal income tax purposes, was as GOVERNMENT TOTAL
follows: LIQUID SECURITIES INCOME RETURN GROWTH
Aggregate gross unrealized appreciation $ -- $ 1,077,858 $ 316,314 $ 16,947,234 $16,779,774
Aggregate gross unrealized depreciation -- (367,620) (930,571) (698,331) (58,143)
------------ ------------ ------------ ------------- ------------
Net unrealized appreciation (depreciation) $ -- $ 710,238 $ (614,257) $ 16,248,903 $16,721,631
------------ ------------ ------------ ------------- ------------
------------ ------------ ------------ ------------- ------------
2. The aggregate cost of investments for Federal
income tax purposes was: $63,762,744 $50,109,117 $45,915,533 $185,776,137 $81,314,182
------------ ------------ ------------ ------------- ------------
------------ ------------ ------------ ------------- ------------
3. Purchases and sales of securities (excluding
short-term securities) for the six months ended
June 30, 1995 are summarized as follows:
Purchases $ -- $15,982,930 $ 8,377,048 $ 42,898,643 $35,140,419
Sales $ -- $27,933,247 $10,605,131 $ 74,114,376 $29,874,172
</TABLE>
10
<PAGE>
STATEMENT OF NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
A C C O U N T S
GOVERNMENT TOTAL
LIQUID SECURITIES INCOME RETURN GROWTH
<S> <C> <C> <C> <C> <C>
ASSETS
Investments:
Bonds, at market value
(Cost $49,799,117, $43,931,211,
$70,399,966) $ -- $50,509,355 $43,316,954 $ 72,425,284 $ --
Common stocks, at market value
(Cost $64,331,079, $71,945,181) -- -- -- 78,554,664 88,666,812
Short-term securities 63,762,744 310,000 1,984,322 51,045,092 9,369,001
------------ ------------ ------------ ------------- ------------
63,762,744 50,819,355 45,301,276 202,025,040 98,035,813
Cash 2,853 1,393 9,863 8,746 5,339
Investment income receivable 80,093 1,033,935 794,292 1,224,367 214,040
Receivable from securities sold -- -- -- 588,984 636,602
Receivable from Fund shares sold 117,807 28,911 48,828 59,956 50,401
------------ ------------ ------------ ------------- ------------
Total Assets 63,963,497 51,883,594 46,154,259 203,907,093 98,942,195
------------ ------------ ------------ ------------- ------------
LIABILITIES
Accrued expenses payable 91,408 113,406 45,371 334,009 167,379
Payable for securities purchased -- 511,720 -- 855,457 1,083,336
Dividends payable 8,306 -- -- -- --
Total Liabilities 99,714 625,126 45,371 1,189,466 1,250,715
------------ ------------ ------------ ------------- ------------
NET ASSETS $63,863,783 $51,258,468 $46,108,888 $202,717,627 $97,691,480
------------ ------------ ------------ ------------- ------------
------------ ------------ ------------ ------------- ------------
OUTSTANDING SHARES 63,863,783 4,907,718 4,882,627 13,611,392 5,874,382
------------ ------------ ------------ ------------- ------------
------------ ------------ ------------ ------------- ------------
NET ASSET VALUE PER SHARE $1.00 $10.44 $9.44 $14.89 $16.63
----- ------ ----- ------ ------
----- ------ ----- ------ ------
NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) $63,863,783 $53,921,691 $48,871,786 $183,199,804 $78,476,370
Undistributed net investment income -- 72,169 36,057 128,739 67,221
Accumulated undistributed net realized
gain (loss) -- (3,445,630) (2,184,698) 3,140,181 2,426,258
Net unrealized appreciation
(depreciation) -- 710,238 (614,257) 16,248,903 16,721,631
------------ ------------ ------------ ------------- ------------
NET ASSETS $63,863,783 $51,258,468 $46,108,888 $202,717,627 $97,691,480
------------ ------------ ------------ ------------- ------------
------------ ------------ ------------ ------------- ------------
</TABLE>
11 The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENT OF OPERATIONS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
A C C O U N T S
GOVERNMENT TOTAL
LIQUID SECURITIES INCOME RETURN GROWTH
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest $2,021,301 $2,382,456 $1,807,409 $ 4,146,518 $ 276,503
Dividends -- -- -- 945,743 1,016,400
----------- ----------- ----------- ------------ ------------
Total Income 2,021,301 2,382,456 1,807,409 5,092,261 1,292,903
----------- ----------- ----------- ------------ ------------
Expenses:
Investment advisory fees 165,853 183,692 145,711 586,971 271,369
Transfer agent fees 99,800 45,100 30,200 189,400 91,700
Distribution fees -- -- -- 83,049 39,540
Registration fees 16,750 15,250 14,250 21,750 18,250
Custodian fees 14,000 12,475 13,500 22,450 17,900
Shareholder reports 5,000 5,500 4,000 20,000 10,000
Professional services 7,700 6,050 5,500 24,200 11,550
Directors' fees 2,100 1,900 1,710 5,220 2,820
Other 116 5,158 -- 18,954 13,291
Expense reimbursement from investment
adviser -- -- (69,160) -- --
----------- ----------- ----------- ------------ ------------
Total Expenses 311,319 275,125 145,711 971,994 476,420
----------- ----------- ----------- ------------ ------------
NET INVESTMENT INCOME 1,709,982 2,107,331 1,661,698 4,120,267 816,483
----------- ----------- ----------- ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 2 (592,478) (486,025) 2,607,488 1,898,129
Net unrealized appreciation on
investments -- 4,666,776 2,054,379 16,532,094 11,899,886
----------- ----------- ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 2 4,074,298 1,568,354 19,139,582 13,798,015
----------- ----------- ----------- ------------ ------------
NET INCREASE IN NET
ASSETS RESULTING FROM OPERATIONS $1,709,984 $6,181,629 $3,230,052 $23,259,849 $14,614,498
----------- ----------- ----------- ------------ ------------
----------- ----------- ----------- ------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
For the six months ended June 30, 1995
(Unaudited)
and the year ended December 31, 1994
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
A C C O U N T S
LIQUID GOVERNMENT SECURITIES
1995 1994 1995 1994
INCREASE (DECREASE) IN NET
ASSETS
FROM OPERATIONS:
Net investment income $ 1,709,982 $ 2,575,968 $ 2,107,331 $ 4,942,102
Net realized gain (loss)
on investments 2 (987) (592,478) (2,822,974)
Net unrealized
appreciation
(depreciation) -- -- 4,666,776 (5,366,869)
------------- -------------- ------------- -------------
Net increase (decrease) in
net assets resulting from
operations 1,709,984 2,574,981 6,181,629 (3,247,741)
------------- -------------- ------------- -------------
DIVIDENDS TO SHAREHOLDERS
FROM:
Net investment income (1,709,984) (2,574,981) (2,067,140) (4,939,034)
Net realized gain from
investment transactions -- -- -- (56,279)
------------- -------------- ------------- -------------
(1,709,984) (2,574,981) (2,067,140) (4,995,313)
------------- -------------- ------------- -------------
FROM CAPITAL SHARE
TRANSACTIONS:
Net proceeds from sale of
shares 87,303,939 177,469,640 1,630,430 7,468,147
Net asset value of shares
issued to shareholders
from reinvestment of
dividends 1,674,793 2,548,202 1,834,042 4,527,905
Cost of shares reacquired (89,060,819) (192,692,366) (16,482,832) (21,186,898)
------------- -------------- ------------- -------------
Increase (decrease) in net
assets derived from
capital share
transactions (82,087) (12,674,524) (13,018,360) (9,190,846)
------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN
NET ASSETS (82,087) (12,674,524) (8,903,871) (17,433,900)
NET ASSETS -- BEGINNING OF
PERIOD 63,945,870 76,620,394 60,162,339 77,596,239
------------- -------------- ------------- -------------
NET ASSETS -- END OF PERIOD $ 63,863,783 $ 63,945,870 $ 51,258,468 $ 60,162,339
------------- -------------- ------------- -------------
------------- -------------- ------------- -------------
Undistributed net investment
income included in net
assets at end of period -- -- $72,169 $31,978
------------- -------------
------------- -------------
Undistributed net realized
gain (loss) on investments
included in net assets at
end of period -- -- $(3,445,628) $(2,853,150)
------------- -------------
------------- -------------
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
A C C O U N T S
INCOME TOTAL RETURN GROWTH
1995 1994 1995 1994 1995 1994
INCREASE (DECREASE) IN NET
ASSETS
FROM OPERATIONS:
Net investment income $ 1,661,698 $ 3,484,675 $ 4,120,267 $ 7,127,925 $ 816,483 $ 1,077,298
Net realized gain (loss)
on investments (486,025) (660,384) 2,607,488 2,872,138 1,898,129 3,074,097
Net unrealized
appreciation
(depreciation) 2,054,379 (3,054,974) 16,532,094 (14,089,642) 11,899,886 (4,619,868)
------------ ------------- ------------- ------------- ------------ ------------
Net increase (decrease) in
net assets resulting from
operations 3,230,052 (230,683) 23,259,849 (4,089,579) 14,614,498 (468,473)
------------ ------------- ------------- ------------- ------------ ------------
DIVIDENDS TO SHAREHOLDERS
FROM:
Net investment income (1,643,000) (3,473,505) (4,036,099) (7,098,435) (750,655) (1,076,035)
Net realized gain from
investment transactions -- -- -- (3,186,699) -- (3,254,775)
------------ ------------- ------------- ------------- ------------ ------------
(1,643,000) (3,473,505) (4,036,099) (10,285,134) (750,655) (4,330,810)
------------ ------------- ------------- ------------- ------------ ------------
FROM CAPITAL SHARE
TRANSACTIONS:
Net proceeds from sale of
shares 3,779,052 11,501,443 14,787,890 52,357,416 9,109,416 20,893,600
Net asset value of shares
issued to shareholders
from reinvestment of
dividends 1,405,785 3,019,579 3,941,409 10,101,758 737,664 4,286,409
Cost of shares reacquired (7,209,965) (12,906,272) (13,139,429) (41,385,584) (4,409,281) (6,485,813)
------------ ------------- ------------- ------------- ------------ ------------
Increase (decrease) in net
assets derived from
capital share
transactions (2,025,128) 1,614,750 5,589,870 21,073,590 5,437,799 18,694,196
------------ ------------- ------------- ------------- ------------ ------------
NET INCREASE (DECREASE) IN
NET ASSETS (438,076) (2,089,438) 24,813,620 6,698,877 19,301,642 13,894,913
NET ASSETS -- BEGINNING OF
PERIOD 46,546,964 48,636,402 177,904,007 171,205,130 78,389,838 64,494,925
------------ ------------- ------------- ------------- ------------ ------------
NET ASSETS -- END OF PERIOD $46,108,888 $ 46,546,964 $202,717,627 $177,904,007 $97,691,480 $78,389,838
------------ ------------- ------------- ------------- ------------ ------------
------------ ------------- ------------- ------------- ------------ ------------
Undistributed net investment
income included in net
assets at end of period $ 36,057 $ 17,359 $ 128,739 $ 44,571 $ 67,221 $ 1,393
------------ ------------- ------------- ------------- ------------ ------
------------ ------------- ------------- ------------- ------------ ------
Undistributed net realized
gain (loss) on investments
included in net assets at
end of period $(2,184,698) $ (1,698,673) $ 3,140,182 $ 532,694 $ 2,426,260 $ 528,131
------------ ------------- ------------- ------------- ------------ ------------
------------ ------------- ------------- ------------- ------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 14
<PAGE>
FINANCIAL HIGHLIGHTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
June 30, 1995 (Unaudited)
Selected data for a share of capital stock outstanding throughout the period:
<TABLE>
<CAPTION>
NET REALIZED DISTRIBUTIONS
DIVIDENDS & UNREALIZED FROM NET NET ASSET
YEARS NET FROM NET GAIN (LOSS) REALIZED VALUE AT
ENDED INVESTMENT INVESTMENT ON GAIN ON BEGINNING
DECEMBER 31 INCOME INCOME INVESTMENTS INVESTMENTS OF PERIOD
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------
LIQUID ACCOUNT
1986 $.0588 $(.0588) $ -- $ -- $ 1.00
1987 .0581 (.0581) -- -- 1.00
1988 .0664 (.0664) -- -- 1.00
1989 .0822 (.0822) -- -- 1.00
1990 .0731 (.0731) -- -- 1.00
1991 .0522 (.0522) -- -- 1.00
1992 .0287 (.0287) -- -- 1.00
1993 .0227 (.0227) -- -- 1.00
1994 .0334 (.0334) -- -- 1.00
1995 (c) .0256 (.0256) -- -- 1.00
GOVERNMENT SECURITIES ACCOUNT
1986 .92 (.92) .28 (.11) 10.73
1987 .84 (.84) (.52) (.21) 10.90
1988 .84 (.85) (.05) (.05) 10.17
1989 .84 (.84) .52 -- 10.06
1990 .84 (.84) .10 -- 10.58
1991 .85 (.85) .68 -- 10.68
1992 .77 (.77) (.12) (.05) 11.36
1993 .70 (.70) .36 (.64) 11.19
1994 .69 (.69) (1.14) (.01) 10.91
1995 (c) .37 (.36) .67 -- 9.76
INCOME ACCOUNT
1986 .83 (.83) .57 (.08) 10.55
1987 .76 (.76) (.56) (.51) 11.04
1988 .84 (.85) (.19) -- 9.97
1989 .88 (.88) .02 -- 9.77
1990 .94 (.94) (.35) -- 9.79
1991 .81 (.81) .47 -- 9.44
1992 .79 (.79) (.16) -- 9.91
1993 .65 (.65) .11 -- 9.75
1994 .68 (.68) (.72) -- 9.86
1995 (c) .33 (.33) .30 -- 9.14
TOTAL RETURN ACCOUNT
1986 .31 (.30) .99 (.04) 10.91
1987 .38 (.38) .13 (1.09) 11.87
1988 .53 (.53) .60 -- 10.91
1989 .76 (.76) 1.81 (.63) 11.51
1990 .66 (.66) (.68) (.07) 12.69
1991 .54 (.54) 2.79 (.71) 11.94
1992 .50 (.50) .86 (1.07) 14.02
1993 .48 (.48) 1.70 (.97) 13.81
1994 .55 (.55) (.86) (.24) 14.54
1995 (c) .31 (.30) 1.44 -- 13.44
GROWTH ACCOUNT
1986 .24 (.24) 1.11 (.08) 10.94
1987 .22 (.22) (.12) (2.05) 11.97
1988 .20 (.20) 1.20 -- 9.80
1989 .51 (.51) 3.30 (1.25) 11.00
1990 .34 (.34) (1.36) (.07) 13.05
1991 .25 (.25) 4.00 (1.22) 11.62
1992 .26 (.26) 1.44 (1.64) 14.40
1993 .30 (.30) 2.64 (1.70) 14.20
1994 .22 (.22) (.32) (.62) 15.14
1995 (c) .14 (.13) 2.42 -- 14.20
<CAPTION>
RATIO OF RATIO OF NET
NET ASSET OPERATING INVESTMENT NET ASSETS
YEARS VALUE AT EXPENSES TO INCOME TO AT END ANNUAL
ENDED END AVERAGE AVERAGE PORTFOLIO OF PERIOD TOTAL
DECEMBER 31 OF PERIOD NET ASSETS NET ASSETS TURNOVER (IN THOUSANDS) RETURN(B)
<S> <C> <C> <C> <C> <C> <C>
-----------
LIQUID ACCOUNT
1986 $ 1.00 1.00% 5.88% n/a $74,111 6.03%
1987 1.00 1.00 5.81 n/a 68,908 5.97
1988 1.00 1.04 6.64 n/a 73,921 6.82
1989 1.00 1.06 8.22 n/a 87,264 8.53
1990 1.00 1.06 7.31 n/a 84,387 7.53
1991 1.00 1.01 5.22 n/a 69,932 5.31
1992 1.00 1.02 2.87 n/a 67,549 2.89
1993 1.00 .95 2.27 n/a 76,620 2.30
1994 1.00 .93 3.34 n/a 63,946 3.40
1995 (c) 1.00 .94(a) 5.16(a) n/a 63,864 2.58
GOVERNMENT SECURITIES ACCOUNT
1986 10.90 1.27 8.92 111.68% 22,947 11.66
1987 10.17 1.24 8.12 207.67 24,703 3.33
1988 10.06 1.16 8.27 175.50 35,910 7.99
1989 10.58 1.19 8.14 68.14 41,561 14.10
1990 10.68 1.16 8.07 44.19 47,524 9.44
1991 11.36 1.07 7.83 27.50 55,332 15.03
1992 11.19 1.01 6.92 131.79 67,612 6.07
1993 10.91 .93 6.03 224.02 77,596 9.56
1994 9.76 .91 6.71 156.90 60,162 (4.18)
1995 (c) 10.44 .94(a) 7.17(a) 55.89(a) 51,258 10.83
INCOME ACCOUNT
1986 11.04 1.29 7.69 164.13 14,620 13.54
1987 9.97 1.27 7.32 231.39 15,367 2.03
1988 9.77 1.24 8.43 150.04 16,789 6.70
1989 9.79 1.27 8.93 52.95 18,705 9.56
1990 9.44 1.24 9.78 90.20 19,809 6.33
1991 9.91 1.12 8.44 50.44 22,839 14.22
1992 9.75 .63 8.09 109.47 38,675 6.60
1993 9.86 .63 6.56 145.94 48,636 7.97
1994 9.14 .63 7.16 62.88 46,547 (0.42)
1995 (c) 9.44 .63(a) 7.13(a) 37.88(a) 46,109 6.97
TOTAL RETURN ACCOUNT
1986 11.87 1.26 3.22 143.32 35,382 11.88
1987 10.91 1.08 3.15 197.79 44,770 3.92
1988 11.51 1.11 4.61 223.62 54,253 10.40
1989 12.69 1.20 5.90 149.22 65,071 22.61
1990 11.94 1.24 5.31 115.45 66,382 (0.21)
1991 14.02 1.20 4.02 122.40 86,455 28.21
1992 13.81 1.11 3.61 177.85 109,701 9.90
1993 14.54 1.02 3.40 155.16 171,205 15.89
1994 13.44 .96 3.80 115.01 177,904 (2.11)
1995 (c) 14.89 1.20(a) 4.39(a) 53.78(a) 202,718 13.04
GROWTH ACCOUNT
1986 11.97 1.31 2.21 163.15 19,469 12.25
1987 9.80 1.17 1.71 214.32 19,638 (0.29)
1988 11.00 1.23 1.95 246.14 26,285 14.32
1989 13.05 1.18 3.90 169.75 37,323 34.86
1990 11.62 1.19 2.73 143.95 35,202 (7.98)
1991 14.40 1.19 1.74 148.30 40,716 36.91
1992 14.20 1.12 1.74 141.69 45,600 11.99
1993 15.14 1.05 1.95 99.67 64,495 20.91
1994 14.20 1.02 1.50 98.46 78,390 (0.65)
1995 (c) 16.63 1.26(a) 1.88(a) 75.89(a) 97,691 18.03
<FN>
(a) Annualized
(b) Annual total returns do not include the effect of sales charges
(c) For the six months ended June 30, 1995
</TABLE>
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
June 30, 1995 (Unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Connecticut Mutual Investment Accounts, Inc. (the Fund), a Maryland
corporation, is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. The Fund is comprised
of thirteen distinct mutual funds, including the following five Accounts
included in these financial statements: Liquid, Government Securities, Income,
Total Return and Growth. An interest in the Fund is limited to the assets of
the Account or Accounts in which shares are held by shareholders, and such
shareholders are entitled to a pro rata share of all dividends and
distributions arising from the net investment income and net realized capital
gains on the investments of such Accounts.
The following is a summary of significant accounting policies followed by the
Fund:
(a)VALUATION OF INVESTMENT SECURITIES - Except with respect to securities held
by the Liquid Account, equity and debt securities which are traded on
securities exchanges are valued at the last sales price as of the close of
business on the day the securities are being valued. Lacking any sales,
equity securities are valued at the last bid price and debt securities are
valued at the mean between closing bid and asked prices. Securities traded
in the over-the-counter market and included in the NASDAQ National Market
System are valued using the last sales price when available. Otherwise,
over-the-counter securities are valued at the mean between the bid and
asked prices or yield equivalent as obtained from one or more dealers who
make a market in the securities. Short-term securities are valued on an
amortized cost basis, which approximates market value. Securities for which
market quotations are not readily available are valued at fair value as
determined in accordance with procedures established by the Board of
Directors of the Fund, including the use of valuations furnished by a
private service retained by the custodian.
Securities held by the Liquid Account are valued on an amortized cost
basis. This basis involves valuing a security at cost and thereafter
assuming a constant amortization to maturity of any discount or premium,
regardless of the impact of fluctuating interest rates on the market value
of the instrument. The amortized cost method, in the opinion of the Board
of Directors, represents the fair value of the particular security. The
Board monitors the deviation between the Account's net asset value per
share as determined by using available market quotations and its amortized
cost price per share. If the deviation exceeds one half of one percent, the
Board will consider what action, if any, should be initiated to provide
fair valuation. Throughout the second quarter of 1995, the deviation was
less than one half of one percent.
(b)FEDERAL INCOME TAXES - The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue
Code. Under such provisions, by distributing substantially all of its
taxable income to its shareholders or otherwise complying with requirements
for regulated investment companies, the Fund will not be subject to Federal
income taxes. Accordingly, no provision for Federal income taxes is
required. For Federal tax reporting purposes, each Account is treated as a
separate taxable entity.
(c)GAINS AND LOSSES - Realized gains and losses from sales of investments are
determined on the identified cost basis.
(d)AFFILIATE HOLDINGS - Connecticut Mutual Life Insurance Company and its
affiliates own 29,124,112 shares of the five Accounts of the Fund as
follows:
<TABLE>
<CAPTION>
GOVERNMENT
LIQUID SECURITIES INCOME TOTAL RETURN GROWTH
<S> <C> <C> <C> <C>
25,026,814 725,035 1,533,159 210 1,838,894
</TABLE>
(e)OTHER - Investment transactions are accounted for on the trade date which
is the date the order to buy or sell is executed. Dividend income is
recorded on the ex-dividend date and interest income is accrued on a daily
basis. All expenses are accrued on a daily basis.
2. INVESTMENT ADVISORY FEES AND OTHER AFFILIATE TRANSACTIONS
The Fund has an Investment Advisory Agreement with G.R. Phelps & Co., Inc.
(the Investment Adviser), a wholly-owned subsidiary of Connecticut Mutual Life
Insurance Company. The Investment Adviser, subject to review by the Board of
Directors, is responsible for the investment management of each Account and
has the responsibility for making decisions to buy, sell or hold any
particular security. The Investment Adviser is obligated to perform certain
administrative services for the Fund.
As compensation for its services to the Liquid Account, the Investment Adviser
receives monthly compensation at the annual rate of 0.50% of the first $200
million of average daily net assets, 0.45% of the next $100 million of average
daily net assets and 0.40% of the average daily net assets in excess of $300
million of the Account. As compensation for its services to the Government
Securities, Income, Total Return and Growth Accounts, the Investment Adviser
receives monthly compensation at the annual rate of 0.625% of the first $300
million of average daily net assets, 0.50% of the next $100 million of average
daily net assets and 0.45% of the average daily net assets in excess of $400
million of each Account.
16
<PAGE>
The investment advisory fees, which also cover certain administrative and
management services, amounted to $1,353,596 for all Accounts for the six
months ended June 30, 1995. For the six months ended June 30, 1995, the
Investment Adviser, serving as principal underwriter for sale of shares of the
Accounts, earned $809,906 related to sales charges deducted from proceeds for
shares sold.
Expenses incurred in the operation of the Fund are borne by the Fund. However,
the Investment Adviser has agreed that in any year the aggregate expenses
(including the investment advisory fee, but excluding interest, taxes,
brokerage fees, commissions and uncommon charges such as litigation costs)
exceed 1% of the value of the average daily net assets of the Liquid Account
or 1.5% of the value of the average daily net assets in each of the other four
Accounts, it will reimburse the Accounts for such excess.
Each Account has adopted a distribution plan (Plan) in accordance with the
requirements of Rule 12b-1 of the Investment Company Act of 1940. Under each
Plan, each Account may pay G. R. Phelps & Co., Inc. (the Distributor) a fee,
not exceeding 0.25% of the Account's average daily net assets for any fiscal
year, as reimbursement for its expenditures incurred in distributing and
servicing shares of the Account. Effective May 1, 1995, the Total Return and
Growth Accounts commenced accruing fees daily and paying fees monthly to the
Distributor at an annual rate of 0.25% of each Account's average daily net
assets. For the two months ended June 30, 1995, the Distributor received
$122,589 in fees from these Accounts. The Liquid, Government Securities and
Income Accounts accrued no fees and paid no amounts pursuant to any Plan
during the six months ended June 30, 1995.
3. DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid monthly for the
Government Securities and Income Accounts and semi-annually for the Total
Return and Growth Accounts. Dividends from net investment income of the Liquid
Account, which include any net short-term capital gains, are declared and
accrued daily and paid monthly. All net realized capital gains (excluding the
Liquid Account), if any, are declared and paid at least annually.
4. CAPITAL STOCK
The authorized capital stock of the Fund at June 30, 1995 consisted of
3,000,000,000 shares of common stock, par value $0.001 per share. The shares
of stock are divided among thirteen separate Accounts, five of which are
indicated below. All shares of common stock have equal voting rights, except
that only shares of a particular Account are entitled to vote on matters
pertaining to that Account.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JUNE 30, 1995
GOVERNMENT TOTAL
LIQUID SECURITIES INCOME RETURN GROWTH
<S> <C> <C> <C> <C> <C>
Shares authorized (in millions) 600 200 200 200 200
--- --- --- --- ---
--- --- --- --- ---
Shares sold 87,303,939 161,212 406,488 1,034,767 595,765
Shares issued to shareholders from reinvestment
of dividends 1,674,793 181,502 151,184 265,449 44,738
------------ ----------- ---------- ------------ ---------
Total issued 88,978,732 342,714 557,672 1,300,216 640,503
Shares reacquired (89,060,819) (1,598,262) (769,419) (921,386) (286,565)
------------ ----------- ---------- ------------ ---------
Net increase (decrease) (82,087) (1,255,548) (211,747) 378,830 353,938
------------ ----------- ---------- ------------ ---------
------------ ----------- ---------- ------------ ---------
</TABLE>
17
<PAGE>
CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC.
-------------------------------------------
BOARD OF DIRECTORS AND OFFICERS
DIRECTORS
RICHARD H. AYERS
Chairman and Chief Executive Officer
The Stanley Works
DAVID E. A. CARSON
President, Chairman and
Chief Executive Officer
People's Bank
RICHARD W. GREENE
Executive Vice President and Treasurer
University of Rochester
BEVERLY L. HAMILTON
President
ARCO Investment Management Company
DAVID E. SAMS, JR.
President and Chief Executive Officer
Connecticut Mutual Life Insurance Company
OFFICERS
LINDA M. NAPOLI, Treasurer and Controller
Treasurer, Mutual Funds
Connecticut Mutual Life Insurance Company
LOUIS A. LACCAVOLE, CPA, General Auditor
Vice President and General Auditor
Connecticut Mutual Life Insurance Company
ANN F. LOMELI, Secretary
Corporate Secretary and Counsel
Connecticut Mutual Life Insurance Company
AUDITORS
ARTHUR ANDERSEN LLP
Hartford, CT
This report has been prepared for shareholders of the Account and may be
distributed to prospective investors in the Account when preceded or accompanied
by a current prospectus.
