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Previous: SIT GROWTH & INCOME FUND INC, DEF 14A, 1995-09-06 |
Next: CONNECTICUT MUTUAL INVESTMENT ACCOUNTS INC, N-30D, 1995-09-06 |
<PAGE>CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC.
1995 SEMI-ANNUAL REPORT
DEAR CMIA LIFESPAN SHAREHOLDER:
I'm pleased to take this opportunity to welcome you to CMIA LifeSpan
Accounts, our newest addition to Connecticut Mutual's extensive array of
funds. I hope you are as enthusiastic as we are about CMIA LifeSpan and its
ability to bring you diversification and a range of expertise -- all within
one fund.
Although CMIA LifeSpan was just introduced in May, we've already attracted
the interest of the financial community. The WALL STREET JOURNAL cited CMIA
LifeSpan Accounts in an August 4, 1995 article about the emerging trend of
the life-cycle funds.
Within a CMIA LifeSpan Account, you are investing in four to seven different
types of securities -- each managed with different investment styles. The mix
reflects your investment objectives and needs, rather than relying on the
traditional approach based on investor age. The investments also are made
within clearly defined parameters, so you know exactly how your money is
being allocated.
The three CMIA LifeSpan Accounts include the funds in the CMIA mutual fund
family -- all of which have an excellent track record over time -- as well as
three funds managed by external managers carefully selected for their
expertise. These funds include the International Fund managed by Scudder,
Stevens and Clark, Inc.; the High Yield/High Risk Bond Fund managed by BA
Associates; and the Small Capital Stock Fund managed by Pilgrim Baxter and
Associates.
If you are new to Connecticut Mutual you'll soon realize that we consistently
adhere to a value-oriented investment strategy that has produced solid
results over time. We plan to stay the course with that strategy in an effort
to produce the long-term rewards sought by investors like you.
Although it is too early to share with you the performance of this newest
member of the CMIA family, we know that all of the funds within CMIA LifeSpan
have performed well over time and, while past performance is no guarantee of
future results, we are confident of a strong future.
I will be communicating with you semi-annually to report on the state of the
economy and the results of your investments. I look forward to a long and
prosperous relationship with you as a CMIA investor, and thank you for your
confidence in us.
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
will continue, fueling strong demand for stocks and bonds. 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 -- rather
than chasing the latest investment fad -- you are more likely to achieve
favorable returns over the long-term.
As a CMIA LifeSpan 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 would like more information about CMIA LifeSpan, or want to consider
expanding your investment options, talk to your registered representative or
call 1-800-234-5606, and press one, to find out more.
David E. Sams, Jr.
PRESIDENT AND CHIEF EXECUTIVE OFFICER
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
T H E C M I A L I F E S P A N A C C O U N T S
CAPITAL APPRECIATION ACCOUNT
This account is designed for the investor seeking capital appreciation. The
Capital Appreciation Account seeks long-term capital appreciation through a
strategically allocated portfolio consisting primarily of equity securities.
Current income is not a primary consideration.
BALANCED ACCOUNT
This Account is designed for the investor seeking capital appreciation and
income. The Balanced Account seeks a blend of capital appreciation and income
through a strategically allocated portfolio of equity securities and
fixed-income securities with a slightly strong emphasis on equity securities.
DIVERSIFIED INCOME ACCOUNT
This Account is designed for the investor with a relatively low tolerance for
risk who is seeking current income with some long-term inflation protection.
The Diversified Income Account seeks high current income, with opportunities
for capital appreciation, through a strategically allocated portfolio
consisting primarily of fixed-income securities.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE.
THIS MATERIAL IS INTENDED FOR USE ONLY WHEN ACCOMPANIED OR PRECEDED BY A
PROSPECTUS.
<PAGE>
SCHEDULE OF INVESTMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
June 30, 1995 (Unaudited)
LIFESPAN DIVERSIFIED INCOME ACCOUNT
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
COMMON STOCKS
(23.5% OF NET ASSETS)
AEROSPACE (2.4%)
2,800 General Dynamics Corp $ 124,250
2,400 General Motors Corp. Class H 94,800
3,000 Lockheed Martin Corp. 189,375
2,300 Rockwell International Corp. 105,225
------------
513,650
------------
BANKING (2.0%)
2,600 Bank of New York Co., Inc. 104,975
1,900 Chase Manhattan Corp. 89,300
1,500 Morgan (J.P.) & Company, Inc. 105,188
700 Wells Fargo & Co. 126,175
------------
425,638
------------
BUSINESS EQUIPMENT & SERVICES (.4%)
4,700 New England Business Service, Inc. 92,825
------------
CHEMICALS (1.4%)
3,100 Grace (W.R.) & Co. 190,262
1,200 Monsanto Co. 108,150
------------
298,412
------------
CONGLOMERATES (.9%)
7,400 Hanson PLC 130,425
900 Textron, Inc. 52,312
------------
182,737
------------
DRUGS & COSMETICS (.5%)
1,400 American Home Products Corp. 108,325
------------
ELECTRIC UTILITIES (2.8%)
3,400 FPL Group, Inc. 131,325
4,200 Illinova Corp. 106,575
5,000 Kansas City Power & Light Co. 114,375
4,800 Unicom Corp. 127,800
3,900 Western Resources, Inc. 120,413
------------
600,488
------------
HEALTH SERVICES & HOSPITAL SUPPLIES
(.8%)
4,400 Baxter International Inc. 160,050
------------
INSURANCE (2.0%)
1,700 Aetna Life & Casualty Co. 106,888
3,100 American General Corp. 104,625
2,300 Lincoln National Corp. 100,625
2,000 St. Paul Companies Inc. 98,500
------------
410,638
------------
IRON & STEEL (1.4%)
1,600 Carpenter Technology Corp. 109,000
25,000 UNR Industries Inc. 184,375
------------
293,375
------------
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
MANUFACTURING (.1)
370 U.S. Industries, Inc. $ 5,041
------------
MISCELLANEOUS (.4%)
3,000 Dial Corp. 74,250
------------
OFFICE EQUIPMENT (.4%)
800 Xerox Corp. 93,800
------------
OIL & GAS (3.4%)
1,600 Amoco Corp. 106,600
2,400 Chevron Corp. 111,900
1,200 Mobil Corp. 115,200
6,200 Panhandle Eastern Corp. 151,125
1,000 Royal Dutch Petroleum Co. 121,875
4,300 Ultramar Corp. 108,575
------------
715,275
------------
REAL ESTATE (1.3%)
3,600 Camden Property Trust 78,750
6,300 Health & Retirement Property Trust 94,500
3,100 Meditrust Corp. 105,787
------------
279,037
------------
RETAIL TRADE (.5%)
1,800 Sears, Roebuck & Co. 107,775
------------
TELEPHONE UTILITIES (1.6%)
3,100 Ameritech Corp. 136,400
2,800 GTE Corp. 95,550
2,500 NYNEX Corp. 100,625
------------
332,575
------------
TOBACCO (1.2%)
2,900 American Brands, Inc. 115,275
1,800 Philip Morris Companies Inc. 133,875
------------
249,150
------------
TOTAL COMMON STOCKS
(COST $4,762,682) 4,943,041
------------
CONVERTIBLE PREFERRED STOCKS
(.6% OF NET ASSETS)
ENERGY SERVICES
J. Ray McDermott, SA (COST
2,300 $142,485) 119,887
------------
PRINCIPAL CORPORATE BONDS
AMOUNT (20.6% OF NET ASSETS)
APPAREL & TEXTILES (.2%)
U.S. Leather, Inc.
$ 50,000 10.25%, 2003 43,250
------------
AUTO & AUTO RELATED (.2%)
Venture Holdings
50,000 9.75%, 2004 41,750
------------
</TABLE>
1
<PAGE>
LIFESPAN DIVERSIFIED INCOME ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
BANKING (2.8%)
BankAmerica Corp
$ 300,000 6.00%, 1997 $ 297,915
First USA Bank of Delaware
150,000 5.35%, 1996 142,710
Shawmut National Corp.
150,000 8.875%, 1996 152,595
------------
593,220
------------
CHEMICALS (.7%)
Building Materials Corp. of
America
100,000 0.00%, 2004 59,000
G-I Holdings
50,000 0.00%, 1998 33,500
Harris Chemical North America,
Inc.
50,000 0.00%, 2001 45,375
------------
137,875
------------
COMPUTER BUSINESS EQUIPMENT &
SERVICES (.6%)
Unisys Corp.
125,000 9.75%, 1996 127,812
------------
DRUGS & COSMETICS (1.5%)
Revlon Consumer Products Corp.
50,000 9.375%, 2001 48,250
Roche Holdings Inc.
300,000 2.75%, 2000 255,375
------------
303,625
------------
FINANCIAL SERVICES (2.0%)
Chrysler Financial Corp.
120,000 6.65%, 1997 121,224
General Motors Acceptance Corp.
300,000 5.65%, 1997 294,792
------------
416,016
------------
HEALTH SERVICES (.9%)
Continental Medical Systems, Inc.
50,000 10.875%, 2002 52,500
Genesis Health Venture, Inc.
75,000 9.75%, 2005 75,563
Integrated Health Services, Inc.
50,000 9.625%, 2002 51,000
------------
179,063
------------
IRON & STEEL (.4%)
Geneva Steel
25,000 9.50%, 2004 17,875
Republic Engineered Steels, Inc.
25,000 9.875%, 2001 22,625
Wierton Steel Corp.
50,000 10.75%, 2005 46,750
------------
87,250
------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
LEASING (.2%)
GPA Delaware, Inc.
$ 50,000 8.75%, 1998 $ 42,500
------------
LEISURE & ENTERTAINMENT (2.8%)
Adelphia Communications Corp.
25,000 12.50%, 2002 24,875
Australis Media Ltd.
75,000 0.00%, 2003 39,188
Bally Park Place Funding
50,000 9.25%, 2004 47,000
Bell Cablemedia PLC
75,000 0.00%, 2004 50,438
Comcast Corp.
50,000 9.375%, 2005 49,875
Greate Bay Property Funding
25,000 10.875%, 2004 21,250
GNF Corp.
50,000 10.625%, 2003 41,500
Helicon Group Ltd.
100,000 9.00%, 2003 92,250
Kloster Cruise Ltd.
25,000 13.00%, 2003 19,250
Peoples Choice TV Corp.
75,000 0.00%, 2004 35,625
Santa Fe Hotel
50,000 11.00%, 2000 46,750
Selmer Company, Inc.
50,000 11.00%, 2005 48,750
Trump Plaza Funding
50,000 10.875%, 2001 45,750
Trump Taj Mahal
50,000 0.00%, 1999 40,250
------------
602,751
------------
MACHINERY & EQUIPMENT (.2%)
Specialty Equipment Companies,
Inc.
50,000 11.375%, 2003 51,375
------------
MANUFACTURING (1.7%)
American Standard, Inc.
50,000 0.00%, 2005 38,000
Day International Group, Inc.
50,000 11.125%, 2005 50,250
Huntsman Corp.
75,000 10.625%, 2001 79,125
Interlake Corp.
50,000 12.125%, 2002 49,375
International Wire Group, Inc.
50,000 11.75%, 2005 50,375
Jordan Industries, Inc.
25,000 10.375%, 2003 23,062
</TABLE>
The accompanying notes are an integral part of these financial statements. 2
<PAGE>
LIFESPAN DIVERSIFIED INCOME ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Plantronics, Inc.
$ 75,000 10.00%, 2001 $ 75,533
------------
365,720
------------
OIL & GAS (.4%)
Maxus Energy Corp.
50,000 9.875%, 2002 47,750
Mesa Capital CP
50,000 0.00%, 1998 45,250
------------
93,000
------------
PAPER & FOREST PRODUCTS (1.8%)
Crown Packaging Holdings Ltd.
100,000 0.00%, 2003 50,375
Doman Industries Ltd.
50,000 8.75%, 2004 47,500
Gaylord Container Corp.
50,000 0.00%, 2005 49,000
Grupo Industrial Durango
25,000 12.00%, 2001 18,750
Indah Kiat Pulp & Paper Corp.
50,000 11.875%, 2002 50,500
Malette, Inc.
50,000 12.25%, 2004 55,500
Stone Container Corp.
100,000 9.875%, 2001 99,125
------------
370,750
------------
PRINTING & PUBLISHING (.1%)
Marvel III Holdings Inc.
25,000 9.125%, 1998 23,125
------------
RETAIL TRADE (2.1%)
Cole National Corp.
50,000 11.25%, 2001 46,750
Dairy Mart Convenience Stores,
Inc.
50,000 10.25%, 2004 42,250
Duane Reade, Inc.
50,000 12.00%, 2002 40,250
Farm Fresh, Inc.
50,000 12.25%, 2000 48,375
Hills Stores Co.
50,000 10.25%, 2003 49,500
Pathmark Stores, Inc.
100,000 0.00%, 2003 60,000
Penn Traffic Co.
50,000 9.625%, 2005 47,125
Ralphs Grocery Co.
50,000 11.00%, 2005 48,125
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Waban, Inc.
$ 50,000 11.00%, 2004 $ 51,000
------------
433,375
------------
TECHNOLOGY (.4%)
Monarch Acquisition
75,000 12.50%, 2003 75,562
------------
TELECOMMUNICATIONS (.9%)
Centennial Cellular Corp.
50,000 10.125%, 2005 49,250
Intermedia Communications of
Florida, Inc.
50,000 13.50%, 2005 50,250
MFS Communications Company, Inc.
75,000 0.00%, 2004 52,125
Nextel Communications, Inc.
100,000 0.00%, 2004 48,000
------------
199,625
------------
TRANSPORTATION (.7%)
Federal Express Corp.
150,000 6.25%, 1998 148,869
------------
TOTAL CORPORATE BONDS
(COST $4,386,876) 4,336,513
------------
U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(48.7% OF NET ASSETS)
U.S. Treasury Bond
1,320,000 8.125%, 2019 1,535,741
U.S. Treasury Notes
2,950,000 7.375%, 1997 3,045,875
4,350,000 5.125%, 1998 4,266,393
1,320,000 7.25%, 2004 1,410,539
------------
TOTAL U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(COST $9,922,964) 10,258,548
------------
FOREIGN GOVERNMENT BONDS
(1.5% OF NET ASSETS)
Province of Ontario
300,000 8.25%, 1996 (COST $305,337) 304,587
------------
REPURCHASE AGREEMENTS
(3.3% OF NET ASSETS)
State Street Bank & Trust Co.
5.50%, due 7/3/95 (COST
705,000 $705,000) 705,000
------------
TOTAL INVESTMENTS
(COST $20,225,344) $ 20,667,576
------------
------------
</TABLE>
3
<PAGE>
LIFESPAN BALANCED ACCOUNT
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
COMMON STOCKS
(44.3% OF NET ASSETS)
AEROSPACE (3.1%)
4,300 General Dynamics Corp. $ 190,814
4,500 General Motors Corp. Class H 177,749
4,900 Lockheed Martin Corp. 309,313
2,200 Loral Corp. 113,850
1,300 McDonnell Douglas Corp. 99,775
4,100 Rockwell International Corp. 187,575
------------
1,079,076
------------
AIRLINES (.7%)
1,100 AMR Corp. 82,088
1,300 Delta Air Lines, Inc. 95,875
1,700 Northwest Airlines Corp. 60,137
------------
238,100
------------
APPAREL & TEXTILES (.6%)
2,000 St. John Knits, Inc. 89,750
4,100 Tommy Hilfiger Corp. 114,800
------------
204,550
------------
BANKING (2.3%)
5,500 Bank of New York Co., Inc. 222,063
3,800 Chase Manhattan Corp. 178,600
3,100 Morgan (J.P.) & Company, Inc. 217,388
1,100 Wells Fargo & Co. 198,275
------------
816,326
------------
BUILDING MATERIALS & CONSTRUCTION
(.1%)
800 USG Corp. 19,000
------------
BUSINESS EQUIPMENT & SERVICES (.5%)
2,000 Medic Computer Systems, Inc. 77,000
4,700 New England Business Service, Inc. 92,824
------------
169,824
------------
CHEMICALS (1.5%)
700 FMC Corp. 47,075
4,700 Grace (W.R.) & Co. 288,462
2,200 Monsanto Co. 198,275
------------
533,812
------------
COMMERCIAL SERVICES (.3%)
1,500 Alternative Resources Corp. 39,750
2,500 Corrections Corporation of America 85,937
------------
125,687
------------
COMPUTER BUSINESS EQUIPMENT &
SERVICES (2.6%)
1,700 ALANTEC Corp. 58,225
1,000 Avid Technology, Inc. 37,500
2,900 Cognex Corp. 116,725
2,500 Digital Link Corp. 70,625
2,100 FileNet Corp. 84,788
3,000 Frame Technology Corp. 87,750
2,300 Hyperion Software Corp. 104,075
2,200 McAfee Associates, Inc. 66,687
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
3,000 National Data Corp. $ 69,375
2,900 Optical Data Systems, Inc. 76,125
1,000 Progress Software Corp. 52,000
2,100 Wonderware Corp. 84,525
------------
908,400
------------
CONGLOMERATES (.9%)
1,100 AlliedSignal Inc. 48,950
7,400 Hanson PLC 130,424
3,000 Jardine Matheson Holdings Ltd. 22,050
2,200 Textron, Inc. 127,875
------------
329,299
------------
DRUGS & COSMETICS (.8%)
2,000 American Home Products Corp. 154,750
1,700 Circa Pharmaceuticals, Inc. 54,187
1,500 Watson Pharmaceuticals, Inc. 58,500
------------
267,437
------------
ELECTRICAL & ELECTRONIC EQUIPMENT
(4.1%)
3,100 C-Cube Microsystems, Inc. 84,475
2,000 Cidco, Inc. 62,750
3,150 Credence Systems Corp. 95,288
3,000 GaSonics International 85,500
1,900 Integrated Silicon Solution, Inc. 99,275
2,600 Itron, Inc. 81,250
1,900 Kemet Corp. 99,750
2,400 Lattice Semiconductor Corp. 82,500
600 Mattson Technology, Inc. 28,200
1,400 Micron Technology Inc. 76,825
1,200 Philips Electronics NV 51,300
2,500 Photronics, Inc. 76,875
3,200 S3, Inc. 115,200
2,500 Silicon Valley Group, Inc. 90,625
2,200 Tencor Instruments 90,200
3,000 Ultratech Stepper, Inc. 105,750
1,700 Vicor Corp. 76,394
1,100 VLSI Technology, Inc. 33,137
------------
1,435,294
------------
ELECTRIC UTILITIES (2.3%)
5,400 FPL Group, Inc. 208,575
6,800 Illinova Corp. 172,550
5,000 Kansas City Power & Light Co. 114,375
7,600 Unicom Corp. 202,350
3,900 Western Resources, Inc. 120,412
------------
818,262
------------
ENVIRONMENTAL CONTROL (.4%)
2,500 Newpark Resources, Inc. 52,500
2,200 United Waste Systems, Inc. 79,200
------------
131,700
------------
FINANCIAL SERVICES (.1%)
3,400 National Auto Credit, Inc. 45,474
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 4
<PAGE>
LIFESPAN BALANCED ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
FOOD & BEVERAGES (.9%)
3,700 Archer Daniels Midland Co. $ 68,913
3,200 Boston Chicken, Inc. 77,400
3,200 Landry's Seafood Restaurants, Inc. 64,000
1,500 Papa John's International, Inc. 52,500
2,100 Ralcorp Holdings, Inc. 48,038
------------
310,851
------------
HEALTH SERVICES & HOSPITAL SUPPLIES
(2.2%)
7,200 Baxter International Inc. 261,900
1,800 Columbia Healthcare Corp. 77,850
2,200 Community Health Systems, Inc. 74,525
2,000 Express Scripts, Inc. 70,500
3,000 Gulf South Medical Supply, Inc. 72,000
3,200 Maxicare Health Plans, Inc. 49,600
2,000 PhyCor, Inc. 70,250
2,800 Ren Corp. 44,450
4,100 TheraTx, Inc. 54,838
------------
775,913
------------
INSURANCE (2.9%)
3,500 Aetna Life & Casualty Co. 220,063
5,400 American General Corp. 182,250
1,800 Healthsource, Inc. 63,000
3,500 Lincoln National Corp. 153,125
3,200 St. Paul Companies Inc. 157,600
2,300 TIG Holdings, Inc. 52,900
2,800 Travelers Group 122,500
1,500 Vesta Insurance Group, Inc. 51,561
------------
1,002,999
------------
IRON & STEEL (.8%)
1,600 Carpenter Technology Corp. 109,000
25,000 UNR Industries Inc. 184,374
------------
293,374
------------
LEISURE & ENTERTAINMENT (1.1%)
1,500 Clear Channel Communications, Inc. 96,563
1,300 Grand Casinos, Inc. 45,988
1,900 Mattel, Inc. 49,400
2,500 Regal Cinemas, Inc. 80,000
1,700 Station Casinos, Inc. 29,325
3,000 TCA Cable TV, Inc. 81,000
------------
382,276
------------
MACHINERY & EQUIPMENT (.7%)
900 Caterpillar Inc. 57,825
1,600 Electroglas, Inc. 91,600
2,200 Mark IV Industries, Inc. 47,300
1,800 Parker-Hannifin Corp. 65,250
------------
261,975
------------
MANUFACTURING (.9%)
1,700 Black & Decker Corp. 52,487
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
3,300 FSI International, Inc. $ 76,931
1,900 Helix Technology Corp. 81,700
4,400 Lydall, Inc. 96,800
500 U.S. Industries 6,813
------------
314,731
------------
METALS & MINING (.4%)
1,300 IMC Global Inc. 70,363
Potash Corporation of Saskatchewan
1,400 Inc. 78,224
------------
148,587
------------
MISCELLANEOUS (.7%)
6,300 Dial Corp. 155,925
1,700 Premark International, Inc. 88,188
------------
244,113
------------
OFFICE EQUIPMENT (.5%)
1,500 Xerox Corp. 175,875
------------
OIL & GAS (3.7%)
2,700 Amoco Corp. 179,888
4,200 Chevron Corp. 195,825
2,100 Mobil Corp. 201,600
10,500 Panhandle Eastern Corp. 255,937
2,000 Repsol SA (Sponsored ADR) 63,250
1,600 Royal Dutch Petroleum Co. 195,000
2,000 Seitel, Inc. 62,000
4,300 Ultramar Corp. 108,575
1,500 YPF Sociedad Anonima (ADR) 28,313
------------
1,290,388
------------
PAPER & FOREST PRODUCTS (.6%)
600 Georgia-Pacific Corp. 52,050
1,600 Scott Paper Co. 79,200
1,200 Willamette Industries, Inc. 66,600
------------
197,850
------------
PRINTING & PUBLISHING (.1%)
800 Gartner Group, Inc. 23,200
------------
REAL ESTATE (.8%)
3,600 Camden Property Trust 78,750
6,300 Health & Retirement Property Trust 94,500
3,100 Meditrust Corp. 105,788
------------
279,038
------------
RETAIL TRADE (2.6%)
3,100 American Stores Co. 87,187
3,300 Books-A-Million 51,562
1,700 CDW Computer Centers, Inc. 85,850
4,500 Corporate Express, Inc. 96,188
3,200 Dollar Tree Stores, Inc. 84,800
1,300 Eckerd Corp. 41,600
2,600 General Nutrition Companies, Inc. 91,325
2,700 Kroger Co. 72,563
3,900 Sears, Roebuck & Co. 233,513
</TABLE>
5
<PAGE>
LIFESPAN BALANCED ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
1,400 Sunglass Hut International, Inc. $ 49,000
------------
893,588
------------
TECHNOLOGY (.8%)
600 Applied Materials, Inc. 51,975
1,200 Compaq Computer Corp. 54,450
Computer Associates International,
1,100 Inc. 74,525
International Business Machines
900 Corp. 86,400
------------
267,350
------------
TELCOMMUNICATIONS (1.0%)
1,000 Ascend Communications, Inc. 50,500
1,500 Aspect Telecommunications Corp. 67,125
3,200 Ericsson LM Tel. Co.(Spons. ADR) 64,000
3,000 LCI International, Inc. 91,875
1500 Picturel Corp. 72,188
------------
345,688
------------
TELEPHONE UTILITIES (1.6%)
5,100 Ameritech Corp. 224,400
4,900 GTE Corp. 167,213
4,400 NYNEX Corp. 177,100
------------
568,713
------------
TOBACCO (1.1%)
4,400 American Brands, Inc. 174,900
2,900 Philip Morris Companies Inc. 215,688
------------
390,588
------------
TRANSPORTATION (.4%)
1,500 Fritz Companies, Inc. 88,031
2,400 RailTex, Inc. 57,000
------------
145,031
------------
WHOLESALE TRADE (.2%)
900 CellStar Corp. 21,037
1,600 Fusion Systems Corp. 54,800
------------
75,837
------------
TOTAL COMMON STOCKS
(COST $14,509,846) 15,510,206
------------
FOREIGN COMMON STOCKS
(11.5% OF NET ASSETS)
AUTO & AUTO RELATED (.6%)
1,000 Autoliv AB (Sweden) 53,499
1,000 Michelin CGDE (France) 44,297
3,000 Shinmaywa Industries Ltd. (Japan) 25,167
700 Valeo SA (France) 34,038
2,000 Volvo AB (Sweden) 38,096
------------
195,097
------------
BANKING (1.0%)
400 Banco Popular Espanol (Spain) 59,443
1,500 Banco Santander SA (Spain) 59,133
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
Bangkok Bank Company Ltd.
4,000 (Thailand) $ 44,075
1,000 Deutsche Bank AG (Germany) 48,594
1,200 HSBC Holdings PLC (United Kingdom) 15,392
6,000 Malayan Banking Berhad (Malaysia) 47,498
200 Societe Generale Paris (France) 23,375
4,500 Thai Farmers Bank Ltd. (Thailand) 43,022
------------
340,532
------------
BUILDING MATERIALS & CONSTRUCTION
(.1%)
PT Indocement Tunggal Prakar
6,000 (Indonesia) 23,574
------------
CHEMICALS (.2%)
200 Akzo Nobel (Netherlands) 23,904
225 Bayer AG (Germany) 55,969
------------
79,873
------------
COMPUTER BUSINESS EQUIPMENT &
SERVICES (.2%)
5,000 Fujitsu Ltd. (Japan) 49,850
600 Getronics NV (Netherlands) 29,390
------------
79,240
------------
CONGLOMERATES (.9%)
Alusuisse-Lonza Holding AG
70 (Switzerland) 43,891
2,000 Canadian Pacific Ltd. (Canada) 34,583
13,000 Hanson PLC (United Kingdom) 45,387
10,000 Hutchison Whampoa Ltd. (Hong Kong) 48,334
180 Mannesmann AG (Germany) 54,993
22,000 Renong Berhad (Malaysia) 40,968
100 Viag AG (Germany) 39,468
------------
307,624
------------
DRUGS & COSMETICS (1.3%)
1,800 Astra AB (Sweden) 55,576
100 Ciba-Geigy AG (Switzerland) 73,296
5,000 PT Kalbe Farma (Indonesia) 22,901
100 Sandoz AG (Switzerland) 68,954
1,000 Schering AG (Germany) 69,853
SmithKline Beecham (United
8,000 Kingdom) 72,403
SmithKline Bch/Bec Units (United
5,000 Kingdom) 44,377
4,000 Zeneca Group PLC (Germany) 67,536
------------
474,896
------------
ELECTRIC UTILITIES (.3%)
3,300 Powergen PLC (United Kingdom) 25,326
200 VEBA AG (Germany) 78,603
------------
103,929
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 6
<PAGE>
LIFESPAN BALANCED ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
ELECTRICAL & ELECTRONIC EQUIPMENT
(1.3%)
BBC AG Brown Boveri & Cie.
65 (Switzerland) $ 67,286
5,000 Hitachi Ltd. (Japan) 49,850
200 Keyence Corp. (Japan) 22,418
1,000 Kyocera Corp. (Japan) 82,355
Matsushita Electric Industrial Co.
3,000 Ltd. (Japan) 46,723
Philips Electronics NV
2,000 (Netherlands) 84,672
1,000 Pioneer Electronic Corp. (Japan) 16,990
1,000 Sony Corp. (Japan) 48,021
Sumitomo Electric Industries Ltd.
4,000 (Japan) 47,667
------------
465,982
------------
FINANCIAL SERVICES (.5%)
220 Compagnie Bancaire SA (France) 26,302
International Nederlanden Groep NV
1,000 (Netherlands) 55,308
4,000 Itochu Corporation (Japan) 23,361
1,000 Nichiei Co. Ltd. (Japan) 61,707
------------
166,678
------------
FOOD & BEVERAGES (.4%)
550 Heineken NV (Netherlands) 76,315
50 Nestle SA (Switzerland) 52,063
------------
128,378
------------
INSURANCE (.6%)
2,000 AEGON NV (Netherlands) 69,184
25 Munich Reinsurance (Germany) 54,776
1,300 Skandia Foersaekrings AB (Sweden) 25,209
Union des Assurances Federales SA
400 (France) 49,224
------------
198,393
------------
IRON & STEEL (.4%)
2,000 Hitachi Metals Ltd. (Japan) 22,441
6,000 Kawasaki Steel (Japan) 19,680
12,000 Nisshin Steel Co., Ltd. (Japan) 44,033
2,600 Outokumpu Oy (Finland) 43,222
Rio Tinto-Zinc Corp. PLC (United
4,000 Kingdom) 52,139
7,000 Sumitomo Metal Industries (Japan) 18,253
------------
199,768
------------
LEISURE & ENTERTAINMENT (.3%)
Carlton Communications PLC (United
3,300 Kingdom) 49,996
Television Broadcasts Ltd. (Hong
8,000 Kong) 28,122
400 TV Francaise (TF1) (France) 39,371
------------
117,489
------------
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
MACHINERY & EQUIPMENT (.3%)
800 Mabuchi Motor Co. (Japan) $ 55,124
3,000 NSK Limited (Japan) 17,309
400 SMC Corp. (Japan) 22,984
------------
95,417
------------
METALS & MINING (.2%)
Broken Hill Proprietary Co. Ltd.
85 (Australia) 1,046
7,400 Poseidon Gold Ltd. (Australia) 14,937
Western Mining Corp. Holdings Ltd.
2,000 (Australia) 11,016
------------
26,999
------------
MISCELLANEOUS (.1%)
SGS Societe Generale de
Surveillance Holding SA
30 (Switzerland) 52,106
------------
OFFICE EQUIPMENT (.1%)
3,000 Canon Inc. (Japan) 48,847
------------
OIL & GAS (1.3%)
23,000 Ampolex Ltd. (Australia) 52,310
5,000 British Gas Corp. (United Kingdom) 23,024
British Petroleum Co. Ltd. (United
6,000 Kingdom) 42,993
Compagnie Francaise de Petroleum
1,615 Total (France) 97,207
Enterprise Oil PLC (United
7,500 Kingdom) 47,240
Hong Kong & China Gas Company Ltd.
13,000 (Hong Kong) 20,749
800 Imperial Oil Ltd. (Canada) 29,778
16,000 Lasmo PLC (United Kingdom) 43,646
4,000 Saga Petroleum (Norway) 56,804
Societe Nationale Elf Aquitaine
535 (France) 39,535
------------
453,286
------------
PAPER & FOREST PRODUCTS (.3%)
950 Metsa-Serla Oy (Finland) 42,262
800 Mo och Domsjo AB (Sweden) 46,155
------------
88,417
------------
PRINTING & PUBLISHING (.2%)
1,500 De La Rue PLC (United Kingdom) 22,332
2,200 Elsevier NV (Netherlands) 25,983
400 Wolters-Kluwer NV (Netherlands) 35,289
------------
83,604
------------
RETAIL TRADE (.3%)
90 Carrefour Supermarche SA (France) 46,101
LVMH Louis Vuitton Moet-Hennessy
270 (France) 48,587
------------
94,688
------------
</TABLE>
7
<PAGE>
LIFESPAN BALANCED ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
TELECOMMUNICATIONS (.3%)
1,200 Nokia AB (Finland) $ 70,241
10,000 Telecom Italia S.p.A (Italy) 27,105
------------
97,346
------------
TELEPHONE UTILITIES (.2%)
5 DDI Corporation (Japan) 40,116
2,000 Telefonica de Espana (Spain) 25,759
------------
65,875
------------
TOBACCO (.1%)
3,000 PT HM Sampoerna (Indonesia) 23,574
------------
TOTAL FOREIGN COMMON STOCKS
(COST $4,030,459) 4,011,612
------------
CONVERTIBLE PREFERRED STOCKS
(.3% OF NET ASSETS)
ENERGY SERVICES
J. Ray McDermott, SA (COST
2,300 $142,485) 118,450
------------
FOREIGN PREFERRED STOCKS
(.7% OF NET ASSETS)
AUTO & AUTO RELATED (.1%)
13,500 Fiat S.p.A. (Italy) 29,372
------------
COMPUTER BUSINESS & EQUIPMENT (.2%)
40 SAP AG (Germany) 50,401
------------
CONGLOMERATES (.1%)
160 RWE AG (Germany) 44,012
------------
ELECTRIC UTILITIES (.1%)
2,000,000 CEMIG (Brazil) 39,109
------------
FINANCIAL SERVICES (.1%)
4,600,000 Banco Bradesco SA (Brazil) 38,979
------------
TELECOMMUNICATIONS (.1%)
Telecomunicacoes de Sao Paulo SA
350,000 (Brazil) 43,342
------------
TOTAL FOREIGN PREFERRED STOCKS
(COST ($244,716) 245,215
------------
PRINCIPAL CORPORATE BONDS
AMOUNT (16.8% OF NET ASSETS)
APPAREL & TEXTILES (.3%)
U.S. Leather, Inc.
$ 100,000 10.25%, 2003 86,500
------------
AUTO & AUTO RELATED (.2%)
Venture Holdings
100,000 9.75%, 2004 83,500
------------
BANKING (1.1%)
BankAmerica Corp.
200,000 6.00%, 1997 198,610
First USA Bank of Delaware
100,000 5.35%, 1996 95,140
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Shawmut National Corp.
$ 100,000 8.875%, 1996 $ 101,730
------------
395,480
------------
CHEMICALS (.8%)
Building Materials Corp. of
America
200,000 0.00%, 2004 118,000
G-I Holdings
100,000 0.00%, 1998 67,000
Harris Chemical North America,
Inc.
100,000 0.00%, 2001 90,750
------------
275,750
------------
COMPUTER BUSINESS EQUIPMENT &
SERVICES (.2%)
Unisys Corp.
75,000 9.75%, 1996 76,688
------------
DRUGS & COSMETICS (.8%)
Revlon Consumer Products Corp.
100,000 9.375%, 2001 96,500
Roche Holdings Inc.
200,000 2.75%, 2000 170,250
------------
266,750
------------
FINANCIAL SERVICES (.8%)
Chrysler Financial Corp.
80,000 6.65%, 1997 80,815
General Motors Acceptance Corp.
200,000 5.65%, 1997 196,528
------------
277,343
------------
HEALTH SERVICES (.6%)
Continental Medical Systems, Inc.
100,000 10.875%, 2002 105,000
Integrated Health Services, Inc.
100,000 9.625%, 2002 102,000
------------
207,000
------------
IRON & STEEL (.5%)
Geneva Steel
50,000 9.50%, 2004 35,750
Republic Engineered Steels, Inc.
50,000 9.875%, 2001 45,250
Wierton Steel Corp.
100,000 10.75%, 2005 93,500
------------
174,500
------------
LEASING (.3%)
GPA Delaware, Inc.
100,000 8.75%, 1998 85,000
------------
LEISURE & ENTERTAINMENT (3.1%)
Adelphia Communications Corp.
50,000 12.50%, 2002 49,750
Australis Media Ltd.
150,000 0.00%, 2003 78,375
</TABLE>
The accompanying notes are an integral part of these financial statements. 8
<PAGE>
LIFESPAN BALANCED ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Bally Park Place Funding
$ 100,000 9.25%, 2004 $ 94,000
Bell Cablemedia PLC
150,000 0.00%, 2004 100,875
Comcast Corp.
100,000 9.375%, 2005 99,750
Greate Bay Property Funding
50,000 10.875%, 2004 42,500
GNF Corp.
100,000 10.625%, 2003 83,000
Helicon Group Ltd.
50,000 9.00%, 2003 46,125
Kloster Cruise Ltd.
50,000 13.00%, 2003 38,500
People's Choice TV Corp.
150,000 0.00%, 2004 71,250
Santa Fe Hotel
100,000 11.00%, 2000 93,500
Selmer Company, Inc.
100,000 11.00%, 2005 97,500
Trump Plaza Funding
100,000 10.875%, 2001 91,500
Trump Taj Mahal
100,000 0.00%, 1999 80,500
------------
1,067,125
------------
MACHINERY & EQUIPMENT (.3%)
Specialty Equipment Companies,
Inc.
100,000 11.375%, 2003 102,750
------------
MANUFACTURING (1.5%)
American Standard, Inc.
100,000 0.00%, 2005 76,000
Day International Group, Inc.
100,000 11.125%, 2005 100,500
Huntsman Corp.
100,000 10.625%, 2001 105,500
Interlake Corp.
100,000 12.125%, 2002 98,750
International Wire Group, Inc.
100,000 11.75%, 2005 100,750
Jordan Industries, Inc.
50,000 10.375%, 2003 46,125
------------
527,625
------------
OIL & GAS (.5%)
Maxus Energy Corp.
100,000 9.875%, 2002 95,500
Mesa Capital CP
100,000 0.00%, 1998 90,500
------------
186,000
------------
PAPER & FOREST PRODUCTS (1.7%)
Crown Packaging Holdings Ltd.
200,000 0.00%, 2003 100,750
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Doman Industries Ltd.
$ 100,000 8.75%, 2004 $ 95,000
Gaylord Container Corp.
100,000 0.00%, 2005 98,000
Grupo Industrial Durango
50,000 12.00%, 2001 37,585
Indah Kiat Pulp & Paper Corp.
100,000 11.875%, 2002 101,000
Malette, Inc.
100,000 12.25%, 2004 111,000
Stone Container Corp.
50,000 9.875%, 2001 49,563
------------
592,898
------------
PRINTING & PUBLISHING (.1%)
Marvel III Holdings Inc.
50,000 9.125%, 1998 46,250
------------
RETAIL TRADE (2.5%)
Cole National Corp.
100,000 11.25%, 2001 93,500
Dairy Mart Convenience Stores,
Inc.
100,000 10.25%, 2004 84,500
Duane Reade, Inc.
100,000 12.00%, 2002 80,500
Farm Fresh, Inc.
100,000 12.25%, 2000 96,750
Hills Stores Co.
100,000 10.25%, 2003 99,000
Pathmark Stores, Inc.
200,000 0.00%, 2003 120,000
Penn Traffic Co.
100,000 9.625%, 2005 94,250
Ralph's Grocery Co.
100,000 11.00%, 2005 96,250
Waban, Inc.
100,000 11.00%, 2004 102,000
------------
866,750
------------
TECHNOLOGY (.1%)
Monarch Acquisition
50,000 12.50%, 2003 50,375
------------
TELECOMMUNICATIONS (1.1%)
Centennial Cellular Corp.
100,000 10.125%, 2005 98,500
Intermedia Communications of
Florida, Inc.
100,000 13.50%, 2005 100,500
MFS Communications Company, Inc.
150,000 0.00%, 2004 104,250
</TABLE>
9
<PAGE>
LIFESPAN BALANCED ACCOUNT (cont'd) LIFESPAN CAPITAL APPRECIATION
ACCOUNT
------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Nextel Communications, Inc.
$ 200,000 0.00%, 2004 $ 96,000
------------
399,250
------------
TRANSPORTATION (.3%)
Federal Express Corp.
100,000 6.25%, 1998 99,246
------------
TOTAL CORPORATE BONDS
(COST $5,953,769) 5,866,780
------------
U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(20.4% OF NET ASSETS)
U.S. Treasury Bond
920,000 8.125%, 2019 1,070,365
U.S. Treasury Notes
2,000,000 7.375%, 1997 2,065,000
3,100,000 5.125%, 1998 3,040,418
920,000 7.25%, 2004 983,103
------------
TOTAL U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(COST $6,924,556) 7,158,886
------------
FOREIGN GOVERNMENT BONDS
(.6% OF NET ASSETS)
Province of Ontario
200,000 8.25%, 1996 (COST $203,559) 203,058
------------
FOREIGN CURRENCY
(.1% OF NET ASSETS)
3,904 Deutsche Mark 2,823
9,579 Finnish Markka 2,243
6,523 French Franc 1,344
15,257 Hong Kong Dollar 1,972
2,414 Netherlands Guilder 1,558
6,800 Norwegian Krone 1,104
2 Pound Sterling 4
10,923 Swedish Krona 1,502
2,616 Swiss Franc 2,272
------------
TOTAL FOREIGN CURRENCY
(COST $14,553) 14,822
------------
REPURCHASE AGREEMENTS
(3.5% OF NET ASSETS)
State Street Bank & Trust Co.
5.50%, due 7/3/95 (COST
1,242,000 $1,242,000) 1,242,000
------------
TIME DEPOSITS
(2.0% OF NET ASSETS)
State Street Bank & Trust Co.
3.50%, due 7/3/95 (COST
702,000 $702,000) 702,000
------------
TOTAL INVESTMENTS
(COST $33,967,943) $ 35,073,029
------------
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
COMMON STOCKS
(58.9% OF NET ASSETS)
AEROSPACE (4.1%)
4,300 General Dynamics Corp. $ 190,813
4,500 General Motors Corp. Class H 177,750
4,900 Lockheed Martin Corp. 309,312
2,200 Loral Corp. 113,850
1,300 McDonnell Douglas Corp. 99,775
4,100 Rockwell International Corp. 187,575
------------
1,079,075
------------
AIRLINES (.9%)
1,100 AMR Corp. 82,088
1,300 Delta Air Lines, Inc. 95,875
1,700 Northwest Airlines Corp. 60,138
------------
238,101
------------
APPAREL & TEXTILES (.8%)
2,000 St. John Knits, Inc. 89,749
4,100 Tommy Hilfiger Corp. 114,800
------------
204,549
------------
BANKING (3.1%)
5,500 Bank of New York Co., Inc. 222,063
3,800 Chase Manhattan Corp. 178,600
3,100 Morgan (J.P.) & Company, Inc. 217,388
1,100 Wells Fargo & Co. 198,275
------------
816,326
------------
BUILDING MATERIALS & CONSTRUCTION
(.1%)
800 USG Corp. 19,000
------------
BUSINESS EQUIPMENT & SERVICES (.6%)
2,000 Medic Computer Systems, Inc. 77,000
4,700 New England Business Service, Inc. 92,825
------------
169,825
------------
CHEMICALS (2.0%)
700 FMC Corp. 47,075
4,700 Grace (W.R.) & Co. 288,462
2,200 Monsanto Co. 198,275
------------
533,812
------------
COMMERCIAL SERVICES (.5%)
1,500 Alternative Resources Corp. 39,750
2,500 Corrections Corporation of America 85,937
------------
125,687
------------
COMPUTER BUSINESS EQUIPMENT &
SERVICES (3.4%)
1,700 ALANTEC Corp. 58,225
1,000 Avid Technology, Inc. 37,500
2,900 Cognex Corp. 116,725
2,500 Digital Link Corp. 70,625
2,100 FileNet Corp. 84,788
</TABLE>
The accompanying notes are an integral part of these financial statements. 10
<PAGE>
LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
3,000 Frame Technology Corp. $ 87,750
2,300 Hyperion Software Corp. 104,075
2,200 McAfee Associates, Inc. 66,688
3,000 National Data Corp. 69,375
2,900 Optical Data Systems, Inc. 76,125
1,000 Progress Software Corp. 52,000
2,100 Wonderware Corp. 84,525
------------
908,401
------------
CONGLOMERATES (1.2%)
1,100 AlliedSignal Inc. 48,950
7,400 Hanson PLC 130,424
3,000 Jardine Matheson Holdings Ltd. 22,050
2,200 Textron, Inc. 127,875
------------
329,299
------------
DRUGS & COSMETICS (1.0%)
2,000 American Home Products Corp. 154,750
1,700 Circa Pharmaceuticals, Inc. 54,187
1,500 Watson Pharmaceuticals, Inc. 58,500
------------
267,437
------------
ELECTRICAL & ELECTRONIC EQUIPMENT
(5.4%)
3,100 C-Cube Microsystems, Inc. 84,475
2,000 Cidco, Inc. 62,750
3,150 Credence Systems Corp. 95,288
3,000 GaSonics International 85,500
1,900 Integrated Silicon Solution, Inc. 99,275
2,600 Itron, Inc. 81,250
1,900 Kemet Corp. 99,750
2,400 Lattice Semiconductor Corp. 82,500
600 Mattson Technology, Inc. 28,200
1,400 Micron Technology Inc. 76,825
1,200 Philips Electronics NV 51,300
2,500 Photronics, Inc. 76,875
3,200 S3, Inc. 115,200
2,500 Silicon Valley Group, Inc. 90,625
2,200 Tencor Instruments 90,200
3,000 Ultratech Stepper, Inc. 105,750
1,700 Vicor Corp. 76,394
1,100 VLSI Technology, Inc. 33,138
------------
1,435,295
------------
ELECTRIC UTILITIES (3.1%)
5,400 FPL Group, Inc. 208,575
6,800 Illinova Corp. 172,550
5,000 Kansas City Power & Light Co. 114,375
7,600 Unicom Corp. 202,350
3,900 Western Resources, Inc. 120,412
------------
818,262
------------
ENVIRONMENTAL CONTROL (.5%)
2,500 Newpark Resources, Inc. 52,500
2,200 United Waste Systems, Inc. 79,200
------------
131,700
------------
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
FINANCIAL SERVICES (.2%)
3,400 National Auto Credit, Inc. $ 45,475
------------
FOOD & BEVERAGES (1.2%)
3,700 Archer Daniels Midland Co. 68,913
3,200 Boston Chicken, Inc. 77,400
3,000 Landry's Seafood Restaurants, Inc. 60,000
1,500 Papa John's International, Inc. 52,500
2,100 Ralcorp Holdings, Inc. 48,038
------------
306,851
------------
HEALTH SERVICES & HOSPITAL SUPPLIES
(2.9%)
7,200 Baxter International Inc. 261,900
1,800 Columbia Healthcare Corp. 77,850
2,200 Community Health Systems, Inc. 74,525
2,000 Express Scripts, Inc. 70,500
3,000 Gulf South Medical Supply, Inc. 72,000
3,200 Maxicare Health Plans, Inc. 49,600
2,000 PhyCor, Inc. 70,250
2,800 Ren Corp. 44,450
4,100 TheraTx, Inc. 54,837
------------
775,912
------------
INSURANCE (3.8%)
3,500 Aetna Life & Casualty Co. 220,062
5,400 American General Corp. 182,250
1,800 Healthsource, Inc. 63,000
3,500 Lincoln National Corp. 153,125
3,200 St. Paul Companies Inc. 157,600
2,300 TIG Holdings, Inc. 52,900
2,800 Travelers Group 122,500
1,500 Vesta Insurance Group, Inc. 51,561
------------
1,002,998
------------
IRON & STEEL (1.1%)
1,600 Carpenter Technology Corp. 109,000
25,000 UNR Industries Inc. 184,375
------------
293,375
------------
LEISURE & ENTERTAINMENT (1.4%)
1,500 Clear Channel Communications, Inc. 96,563
1,300 Grand Casinos, Inc. 45,988
1,900 Mattel, Inc. 49,400
2,500 Regal Cinemas, Inc. 80,000
1,700 Station Casinos, Inc. 29,325
3,000 TCA Cable TV, Inc. 81,000
------------
382,276
------------
MACHINERY & EQUIPMENT (1.0%)
900 Caterpillar Inc. 57,825
1,600 Electroglas, Inc. 91,600
2,200 Mark IV Industries, Inc. 47,300
1,800 Parker-Hannifin Corp. 65,250
------------
261,975
------------
</TABLE>
11
<PAGE>
LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
MANUFACTURING (1.2%)
1,700 Black & Decker Corp. $ 52,488
3,300 FSI International, Inc. 76,931
1,900 Helix Technology Corp. 81,700
4,400 Lydall, Inc. 96,800
500 U.S. Industries 6,813
------------
314,732
------------
METALS & MINING (.6%)
1,300 IMC Global Inc. 70,362
Potash Corporation of Saskatchewan
1,400 Inc. 78,225
------------
148,587
------------
MISCELLANEOUS (.9%)
6,300 Dial Corp. 155,925
1,700 Premark International, Inc. 88,187
------------
244,112
------------
OFFICE EQUIPMENT (.7%)
1,500 Xerox Corp. 175,875
------------
OIL & GAS (4.9%)
2,700 Amoco Corp. 179,888
4,200 Chevron Corp. 195,825
2,100 Mobil Corp. 201,600
10,500 Panhandle Eastern Corp. 255,938
2,000 Repsol SA (Sponsored ADR) 63,250
1,600 Royal Dutch Petroleum Co. 195,000
2,000 Seitel, Inc. 62,000
4,300 Ultramar Corp. 108,575
1,500 YPF Sociedad Anonima (ADR) 28,313
------------
1,290,389
------------
PAPER & FOREST PRODUCTS (.8%)
600 Georgia-Pacific Corp. 52,050
1,600 Scott Paper Co. 79,200
1,200 Willamette Industries, Inc. 66,600
------------
197,850
------------
PRINTING & PUBLISHING (.1%)
800 Gartner Group, Inc. 23,200
------------
REAL ESTATE (1.1%)
3,600 Camden Property Trust 78,750
6,300 Health & Retirement Property Trust 94,500
3,100 Meditrust Corp. 105,787
------------
279,037
------------
RETAIL TRADE (3.4%)
3,100 American Stores Co. 87,188
3,300 Books-A-Million 51,563
1,700 CDW Computer Centers, Inc. 85,850
4,500 Corporate Express, Inc. 96,188
3,100 Dollar Tree Stores, Inc. 82,150
1,300 Eckerd Corp. 41,600
2,600 General Nutrition Companies, Inc. 91,325
2,700 Kroger Co. 72,563
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
3,900 Sears, Roebuck & Co. $ 233,513
1,400 Sunglass Hut International, Inc. 49,000
------------
890,940
------------
TECHNOLOGY (1.0%)
600 Applied Materials, Inc. 51,975
1,200 Compaq Computer Corp. 54,450
Computer Associates International,
1,100 Inc. 74,525
International Business Machine
900 Corp. 86,400
------------
267,350
------------
TELCOMMUNICATIONS (1.3%)
1,000 Ascend Communications, Inc. 50,500
1,500 Aspect Telecommunications Corp. 67,125
3,200 Ericsson LM Tel. Co.(Spons. ADR) 64,000
3,000 LCI International, Inc. 91,875
1,500 Picturel Corp. 72,187
------------
345,687
------------
TELEPHONE UTILITIES (2.2%)
5,100 Ameritech Corp. 224,400
4,900 GTE Corp. 167,212
4,400 NYNEX Corp. 177,100
------------
568,712
------------
TOBACCO (1.5%)
4,400 American Brands, Inc. 174,900
2,900 Philip Morris Companies Inc. 215,687
------------
390,587
------------
TRANSPORTATION (.6%)
1,500 Fritz Companies, Inc. 88,030
2,400 RailTex, Inc. 57,000
------------
145,030
------------
WHOLESALE TRADE (.3%)
900 CellStar Corp. 21,037
1,600 Fusion Systems Corp. 54,800
------------
75,837
------------
TOTAL COMMON STOCKS
(COST $14,503,446) 15,503,556
------------
FOREIGN COMMON STOCKS
(15.2% OF NET ASSETS)
AUTO & AUTO RELATED (.7%)
1,000 Autoliv AB (Sweden) 53,499
1,000 Michelin CGDE (France) 44,297
3,000 Shinmaywa Industries Ltd. (Japan) 25,167
700 Valeo SA (France) 34,038
2,000 Volvo AB (Sweden) 38,096
------------
195,097
------------
BANKING (1.3%)
400 Banco Popular Espanol (Spain) 59,443
1,500 Banco Santander SA (Spain) 59,133
</TABLE>
The accompanying notes are an integral part of these financial statements. 12
<PAGE>
LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
Bangkok Bank Company Ltd.
4,000 (Thailand) $ 44,075
1,000 Deutsche Bank AG (Germany) 48,594
1,200 HSBC Holdings PLC (United Kingdom) 15,392
6,000 Malayan Banking Berhad (Malaysia) 47,498
200 Societe Generale Paris (France) 23,375
4,500 Thai Farmers Bank Ltd. (Thailand) 43,022
------------
340,532
------------
BUILDING MATERIALS & CONSTRUCTION
(.1%)
PT Indocement Tunggal Prakar
6,000 (Indonesia) 23,574
------------
CHEMICALS (.3%)
200 Akzo Nobel (Netherlands) 23,904
225 Bayer AG (Germany) 55,969
------------
79,873
------------
COMPUTER BUSINESS EQUIPMENT &
SERVICES (.3%)
5,000 Fujitsu Ltd. (Japan) 49,850
600 Getronics NV (Netherlands) 29,390
------------
79,240
------------
CONGLOMERATES (1.2%)
Alusuisse-Lonza Holding AG
70 (Switzerland) 43,891
2,000 Canadian Pacific Ltd. (Canada) 34,583
13,000 Hanson PLC (United Kingdom) 45,387
10,000 Hutchison Whampoa Ltd. (Hong Kong) 48,334
180 Mannesmann AG (Germany) 54,993
22,000 Renong Berhad (Malaysia) 40,968
100 Viag AG (Germany) 39,468
------------
307,624
------------
DRUGS & COSMETICS (1.8%)
1,800 Astra AB (Sweden) 55,576
100 Ciba-Geigy AG (Switzerland) 73,296
5,000 PT Kalbe Farma (Indonesia) 22,901
100 Sandoz AG (Switzerland) 68,954
1,000 Schering AG (Germany) 69,853
SmithKline Beecham (United
8,000 Kingdom) 72,403
SmithKline Bch/Bec Units (United
5,000 Kingdom) 44,377
4,000 Zeneca Group PLC (Germany) 67,536
------------
474,896
------------
ELECTRIC UTILITIES (.4%)
3,300 Powergen PLC (United Kingdom) 25,326
200 VEBA AG (Germany) 78,603
------------
103,929
------------
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
ELECTRICAL & ELECTRONIC EQUIPMENT
(1.8%)
BBC AG Brown Boveri & Cie.
65 (Switzerland) $ 67,286
5,000 Hitachi Ltd. (Japan) 49,850
200 Keyence Corp. (Japan) 22,418
1,000 Kyocera Corp. (Japan) 82,355
Matsushita Electric Industrial Co.
3,000 Ltd. (Japan) 46,723
Philips Electronics NV
2,000 (Netherlands) 84,672
1,000 Pioneer Electronic Corp. (Japan) 16,990
1,000 Sony Corp. (Japan) 48,021
Sumitomo Electric Industries Ltd.
4,000 (Japan) 47,667
------------
465,982
------------
FINANCIAL SERVICES (.6%)
220 Compagnie Bancaire SA (France) 26,302
International Nederlanden Groep NV
1,000 (Netherlands) 55,308
4,000 Itochu Corporation (Japan) 23,361
1,000 Nichiei Co. Ltd. (Japan) 61,707
------------
166,678
------------
FOOD & BEVERAGES (.5%)
550 Heineken NV (Netherlands) 76,315
50 Nestle SA (Switzerland) 52,063
------------
128,378
------------
INSURANCE (.7%)
2,000 AEGON N.V. (Netherlands) 69,184
25 Munich Reinsurance (Germany) 54,776
1,300 Skandia Foersaekrings AB (Sweden) 25,209
Union des Assurances Federales SA
400 (France) 49,224
------------
198,393
------------
IRON &STEEL (.6%)
2,000 Hitachi Metals Ltd. (Japan) 22,441
6,000 Kawasaki Steel (Japan) 19,680
12,000 Nisshin Steel Co. Ltd. (Japan) 44,033
2,600 Outokumpu Oy (Finland) 43,222
Rio Tinto-Zinc Corp. PLC (United
4,000 Kingdom) 52,139
7,000 Sumitomo Metal Industries (Japan) 18,253
------------
199,768
------------
LEISURE & ENTERTAINMENT (.4%)
Carlton Communications PLC (United
3,300 Kingdom) 49,996
Television Broadcasts Ltd. (Hong
8,000 Kong) 28,122
400 TV Francaise (TF1) (France) 39,371
------------
117,489
------------
MACHINERY & EQUIPMENT (.4%)
800 Mabuchi Motor Co. (Japan) 55,124
</TABLE>
13
<PAGE>
LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
3,000 NSK Limited (Japan) $ 17,309
400 SMC Corp. (Japan) 22,984
------------
95,417
------------
METALS & MINING (.3%)
Broken Hill Proprietary Co. Ltd.
85 (Australia) 1,046
7,400 Poseidon Gold Ltd. (Australia) 14,937
Western Mining Corp. Holdings Ltd.
2,000 (Australia) 11,016
------------
26,999
------------
MISCELLANEOUS (.2%)
SGS Societe Generale de
Surveillance Holding SA
30 (Switzerland) 52,106
------------
OFFICE EQUIPMENT (.2%)
3,000 Canon Inc. (Japan) 48,847
------------
OIL & GAS (1.7%)
23,000 Ampolex Ltd. (Australia) 52,310
5,000 British Gas Corp. (United Kingdom) 23,024
British Petroleum Co. Ltd. (United
6,000 Kingdom) 42,993
Compagnie Francaise de Petroleum
1,615 Total (France) 97,207
Enterprise Oil PLC (United
7,500 Kingdom) 47,240
Hong Kong & China Gas Company Ltd.
13,000 (Hong Kong) 20,749
800 Imperial Oil Ltd. (Canada) 29,778
16,000 Lasmo PLC (United Kingdom) 43,646
4,000 Saga Petroleum (Norway) 56,804
Societe Nationale Elf Aquitaine
535 (France) 39,535
------------
453,286
------------
PAPER & FOREST PRODUCTS (.3%)
950 Metsa-Serla Oy (Finland) 42,262
800 Mo och Domsjo AB (Sweden) 46,155
------------
88,417
------------
PRINTING & PUBLISHING (.3%)
1,500 De La Rue PLC (United Kingdom) 22,332
2,200 Elsevier NV (Netherlands) 25,983
400 Wolters-Kluwer NV (Netherlands) 35,289
------------
83,604
------------
RETAIL TRADE (.4%)
90 Carrefour Supermarche SA (France) 46,101
LVMH Louis Vuitton Moet-Hennessy
270 (France) 48,587
------------
94,688
------------
TELECOMMUNICATIONS (.4%)
1,200 Nokia AB (Finland) 70,241
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
10,000 Telecom Italia S.p.A (Italy) $ 27,105
------------
97,346
------------
TELEPHONE UTILITIES (.2%)
5 DDI Corporation(Japan) 40,116
2,000 Telefonica de Espana (Spain) 25,759
------------
65,875
------------
TOBACCO (.1%)
3,000 PT HM Sampoerna (Indonesia) 23,574
------------
TOTAL FOREIGN COMMON STOCKS
304,065 (COST $4,030,459) 4,011,612
------------
CONVERTIBLE PREFERRED STOCKS
(.4% OF NET ASSETS)
ENERGY SERVICES
J. Ray McDermott, SA
2,300 (COST $142,485) 118,450
------------
FOREIGN PREFERRED STOCKS
(.9% OF NET ASSETS)
AUTO & AUTO RELATED (.1%)
13,500 Fiat S.p.A.(Italy) 29,372
------------
COMPUTER BUSINESS & EQUIPMENT (.2%)
40 SAP AG (Germany) 50,401
------------
CONGLOMERATES (.2%)
160 RWE AG (Germany) 44,012
------------
ELECTRIC UTILITIES (.1%)
2,000,000 CEMIG (Brazil) 39,109
------------
FINANCIAL SERVICES (.1%)
4,600,000 Banco Bradesco S.A. (Brazil) 38,979
------------
TELECOMMUNICATIONS (.2%)
Telecomunicacoes de Sao Paulo SA
350,000 (Brazil) 43,342
------------
TOTAL FOREIGN PREFERRED STOCKS
(COST $244,716) 245,215
------------
PRINCIPAL CORPORATE BONDS
AMOUNT (9.3% OF NET ASSETS)
APPAREL & TEXTILES (.2%)
U.S. Leather, Inc.
$ 50,000 10.25%, 2003 43,251
------------
AUTO & AUTO RELATED (.1%)
Venture Holdings
50,000 9.75%, 2004 41,750
------------
CHEMICALS (.5%)
Building Materials Corp. of
America
100,000 0.00%, 2004 59,000
G-I Holdings
50,000 0.00%, 1998 33,500
</TABLE>
The accompanying notes are an integral part of these financial statements. 14
<PAGE>
LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Harris Chemical North America,
Inc.
$ 50,000 0.00%, 2001 $ 45,375
------------
137,875
------------
DRUGS & COSMETICS (.2%)
Revlon Consumer Products Corp.
50,000 9.375%, 2001 48,250
------------
HEALTH SERVICES (.4%)
Continental Medical Systems, Inc.
50,000 10.875%, 2002 52,500
Integrated Health Services, Inc.
50,000 9.625%, 2002 51,000
------------
103,500
------------
IRON & STEEL (.3%)
Geneva Steel
25,000 9.50%, 2004 17,875
Republic Engineered Steels, Inc.
25,000 9.875%, 2001 22,625
Wierton Steel Corp.
50,000 10.75%, 2005 46,750
------------
87,250
------------
LEASING (.2%)
GPA Delaware, Inc.
50,000 8.75%, 1998 42,500
------------
LEISURE & ENTERTAINMENT (2.1%)
Adelphia Communications Corp.
25,000 12.50%, 2002 24,875
Australis Media Ltd.
75,000 0.00%, 2003 39,188
Bally Park Place Funding
50,000 9.25%, 2004 47,000
Bell Cablemedia PLC
75,000 0.00%, 2004 50,438
Comcast Corp.
50,000 9.375%, 2005 49,875
Greate Bay Property Funding
25,000 10.875%, 2004 21,250
GNF Corp.
50,000 10.625%, 2003 41,500
Helicon Group Ltd.
50,000 9.00%, 2003 46,125
Kloster Cruise Ltd.
25,000 13.00%, 2003 19,250
People's Choice TV Corp.
75,000 0.00%, 2004 35,625
Santa Fe Hotel
50,000 11.00%, 2000 46,750
Selmer Company, Inc.
50,000 11.00%, 2005 48,750
Trump Plaza Funding
50,000 10.875%, 2001 45,750
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Trump Taj Mahal
$ 50,000 0.00%, 1999 $ 40,250
------------
556,626
------------
MACHINERY & EQUIPMENT (.2%)
Specialty Equipment Companies,
Inc.
50,000 11.375%, 2003 51,375
------------
MANUFACTURING (1.0%)
American Standard, Inc.
50,000 0.00%, 2005 38,000
Day International Group, Inc.
50,000 11.125%, 2005 50,250
Huntsman Corp.
50,000 10.625%, 2001 52,750
Interlake Corp.
50,000 12.125%, 2002 49,375
International Wire Group, Inc.
50,000 11.75%, 2005 50,375
Jordan Industries, Inc.
25,000 10.375%, 2003 23,063
------------
263,813
------------
OIL & GAS (.4%)
Maxus Energy Corp.
50,000 9.875%, 2002 47,750
Mesa Capital CP
50,000 0.00%, 1998 45,250
------------
93,000
------------
PAPER & FOREST PRODUCTS (1.2%)
Crown Packaging Holdings Ltd.
100,000 0.00%, 2003 50,375
Doman Industries Ltd.
50,000 8.75%, 2004 47,500
Gaylord Container Corp.
50,000 0.00%, 2005 49,000
Grupo Industrial Durango
25,000 12.00%, 2001 18,750
Indah Kiat Pulp & Paper Corp.
50,000 11.875%, 2002 50,500
Malette, Inc.
50,000 12.25%, 2004 55,500
Stone Container Corp.
50,000 9.875%, 2001 49,562
------------
321,187
------------
PRINTING & PUBLISHING (.1%)
Marvel III Holdings Inc.
25,000 9.125%, 1998 23,124
------------
RETAIL TRADE (1.6%)
Cole National Corp.
50,000 11.25%, 2001 46,750
Dairy Mart Convenience Stores,
Inc.
50,000 10.25%, 2004 42,250
</TABLE>
15
<PAGE>
LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Duane Reade, Inc.
$ 50,000 12.00%, 2002 $ 40,250
Farm Fresh, Inc.
50,000 12.25%, 2000 48,375
Hills Stores Co.
50,000 10.25%, 2003 49,500
Pathmark Stores, Inc.
100,000 0.00%, 2003 60,000
Penn Traffic Co.
50,000 9.625%, 2005 47,125
Ralph's Grocery Co.
50,000 11.00%, 2005 48,125
Waban, Inc.
50,000 11.00%, 2004 51,000
------------
433,375
------------
TELECOMMUNICATIONS (.8%)
Centennial Cellular Corp.
50,000 10.125%, 2005 49,250
Intermedia Communications of
Florida, Inc.
50,000 13.50%, 2005 50,250
MFS Communications Company, Inc.
75,000 0.00%, 2004 52,125
Nextel Communications, Inc.
100,000 0.00%, 2004 48,000
------------
199,625
------------
TOTAL CORPORATE BONDS
(COST $2,486,385) 2,446,501
------------
U.S. GOVERNMENT & AGENCY LONG-TERM
OBLIGATIONS
(9.7% OF NET ASSETS)
U.S. Treasury Bond
460,000 8.125%, 2019 535,182
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
U.S. Treasury Notes
$ 1,550,000 5.125%, 1998 $ 1,520,209
460,000 7.25%, 2004 491,551
------------
TOTAL U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(COST $2,446,731) 2,546,942
------------
FOREIGN CURRENCY
(.1% OF NET ASSETS)
3,904 Deutsche Mark 2,626
9,579 Finnish Markka 2,243
6,523 French Franc 1,345
15,257 Hong Kong Dollar 1,972
2,414 Netherlands Guilder 1,558
6,800 Norwegian Krone 1,104
4 Pound Sterling 7
10,923 Swedish Krona 1,502
1,641 Swiss Franc 1,425
------------
TOTAL FOREIGN CURRENCY
(COST $13,517) 13,782
------------
REPURCHASE AGREEMENTS
(3.2% OF NET ASSETS)
State Street Bank & Trust Co.
5.50%, due 7/3/95 (COST
837,000 $837,000) 837,000
------------
TIME DEPOSITS
(2.6% OF NET ASSETS)
State Street Bank & Trust Co.
3.50%, due 7/3/95 (COST
695,000 $695,000) 695,000
------------
TOTAL INVESTMENTS
(COST $25,399,739) $ 26,418,058
------------
------------
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C> <C>
A C C O U N T S
1. Aggregate gross unrealized appreciation (depreciation) as of June 30, DIVERSIFIED CAPITAL AP-
1995, based on cost for Federal income tax purposes, was as follows: INCOME BALANCED PRECIATION
Aggregate gross unrealized appreciation $ 575,291 $1,508,306 $ 1,358,483
Aggregate gross unrealized depreciation (133,059) (403,220) (340,164)
-------------- -------------- --------------
Net unrealized appreciation $ 442,232 $1,105,086 $ 1,018,319
-------------- -------------- --------------
-------------- -------------- --------------
2. The aggregate cost of investments for Federal income tax purposes was: $20,225,344 $33,967,943 $ 25,399,739
-------------- -------------- --------------
-------------- -------------- --------------
3. Purchases and sales of securities (excluding short-term securities)
for the six months ended June 30, 1995 are summarized as follows:
Purchases $21,620,374 $36,218,870 $ 25,059,402
Sales $2,153,883 $4,149,171 $ 1,102,671
</TABLE>
The accompanying notes are an integral part of these financial statements. 16
<PAGE>
STATEMENT OF NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C> <C>
L I F E S P A N
A C C O U N T S
<CAPTION>
DIVERSIFIED CAPITAL
INCOME BALANCED APPRECIATION
<S> <C> <C> <C>
ASSETS
Investments:
Bonds, at market value
(Cost $14,615,177, $13,081,884, $4,933,116) $14,899,648 $13,228,724 $ 4,993,443
Common stocks, at market value
(Cost $4,762,682, $18,540,305, $18,533,905) 4,943,041 19,521,818 19,515,168
Preferred stocks, at market value
(Cost $142,485, $387,201, $387,201) 119,887 363,665 363,665
Foreign currency, at market value
(Cost $14,553, $13,517) -- 14,822 13,782
Short-term securities 705,000 1,944,000 1,532,000
------------ ------------ ------------
20,667,576 35,073,029 26,418,058
Cash 1,239 4,286 100,209
Investment income receivable 266,854 260,678 133,272
Receivable from securities sold 76,741 52,233 52,233
Receivable from Fund shares sold 145,125 -- --
Foreign tax receivable -- 3,316 3,121
------------ ------------ ------------
Total Assets 21,157,535 35,393,542 26,706,893
------------ ------------ ------------
LIABILITIES
Accrued expenses payable 33,923 56,501 42,393
Payable for securities purchased 75,000 331,429 331,429
Foreign currency market payable -- 3,336 3,334
------------ ------------ ------------
Total Liabilities 108,923 391,266 377,156
------------ ------------ ------------
NET ASSETS $21,048,612 $35,002,276 $26,329,737
------------ ------------ ------------
------------ ------------ ------------
OUTSTANDING SHARES 2,053,427 3,394,150 2,539,828
------------ ------------ ------------
------------ ------------ ------------
NET ASSET VALUE PER SHARE $10.25 $10.31 $10.37
------ ------ ------
------ ------ ------
NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) $20,548,744 $33,955,503 $25,409,189
Undistributed net investment income 22,783 30,048 19,265
Accumulated undistributed net realized gain (loss) 34,853 (85,025) (113,702)
Net unrealized appreciation 442,232 1,101,750 1,014,985
------------ ------------ ------------
NET ASSETS $21,048,612 $35,002,276 $26,329,737
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
17 The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENT OF OPERATIONS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
For the period from May 1, 1995
(Inception)
to June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C> <C>
L I F E S P A N
A C C O U N T S
<CAPTION>
DIVERSIFIED CAPITAL
INCOME BALANCED APPRECIATION
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest $189,468 $ 225,282 $ 118,607
Dividends 38,966 96,704 96,521
--------- ----------- -----------
Total Income 228,434 321,986 215,128
--------- ----------- -----------
Expenses:
Investment advisory fees 25,313 47,682 35,739
Distribution fees 8,438 14,024 10,511
Other 16,875 25,244 18,921
--------- ----------- -----------
Total Expenses 50,626 86,950 65,171
--------- ----------- -----------
NET INVESTMENT INCOME 177,808 235,036 149,957
--------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments 34,853 (75,466) (104,358)
Net realized loss on foreign currency -- (9,559) (9,344)
Net unrealized appreciation on investments 442,232 1,105,086 1,018,319
Net unrealized depreciation on foreign currency -- (3,336) (3,334)
--------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 477,085 1,016,725 901,283
--------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $654,893 $1,251,761 $1,051,240
--------- ----------- -----------
--------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 18
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
For the period from May 1, 1995
(Inception)
to June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C> <C>
L I F E S P A N
A C C O U N T S
<CAPTION>
DIVERSIFIED CAPITAL
INCOME BALANCED APPRECIATION
<S> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 177,808 $ 235,036 $ 149,957
Net realized gain (loss) on investments 34,853 (75,466) (104,358)
Net realized loss on foreign currency -- (9,559) (9,344)
Net unrealized appreciation 442,232 1,101,750 1,014,985
------------ ------------ ------------
Net increase in net assets resulting from
operations 654,893 1,251,761 1,051,240
------------ ------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (155,025) (204,988) (130,692)
Net realized gain from investment transactions -- -- --
------------ ------------ ------------
(155,025) (204,988) (130,692)
------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 20,395,511 33,750,515 25,288,802
Net asset value of shares issued to shareholders
from reinvestment of dividends 153,233 204,988 130,692
Cost of shares reacquired -- -- (10,305)
------------ ------------ ------------
Increase in net assets derived from capital share
transactions 20,548,744 33,955,503 25,409,189
------------ ------------ ------------
NET INCREASE IN NET ASSETS 21,048,612 35,002,276 26,329,737
NET ASSETS -- BEGINNING OF PERIOD -- -- --
------------ ------------ ------------
NET ASSETS -- END OF PERIOD $21,048,612 $35,002,276 $26,329,737
------------ ------------ ------------
------------ ------------ ------------
Undistributed net investment income included in net
assets
at end of period $22,783 $30,048 $19,265
------------ ------------ ------------
------------ ------------ ------------
Undistributed net realized gain (loss) on investments
included in net assets at end of period $34,853 $(75,466) $(104,358)
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
FINANCIAL HIGHLIGHTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
For the period from May 1, 1995
(Inception)
to June 30, 1995 (Unaudited)
Selected data for a share of capital stock outstanding throughout the period:
<TABLE>
<CAPTION>
NET REALIZED DISTRIBUTIONS
YEAR DIVIDENDS & UNREALIZED FROM NET NET ASSET NET ASSET
ENDED NET FROM NET GAIN (LOSS) REALIZED VALUE AT VALUE AT
DECEMBER INVESTMENT INVESTMENT ON GAIN ON BEGINNING END
31 INCOME INCOME INVESTMENTS INVESTMENTS OF PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
LIFESPAN DIVERSIFIED INCOME ACCOUNT
1995(a) $ .09 $ (.08) $ .24 $ -- $ 10.00 $ 10.25
LIFESPAN BALANCED ACCOUNT
1995(a) $ .07 $ (.06) $ .30 $ -- $ 10.00 $ 10.31
LIFESPAN CAPITAL APPRECIATION ACCOUNT
1995(a) $ .06 $ (.05) $ .36 $ -- $ 10.00 $ 10.37
<CAPTION>
RATIO OF RATIO OF NET
YEAR EXPENSES TO INCOME TO NET ASSETS
ENDED AVERAGE AVERAGE AT END ANNUAL
DECEMBER NET NET PORTFOLIO OF PERIOD TOTAL
31 ASSETS(B) ASSETS(B) TURNOVER(B) (IN THOUSANDS) RETURN(C)
<S> <C> <C> <C> <C> <C>
- ---------- -----------------------------------------------------------------------
LIFESPAN D
1995(a) 1.50% 5.27% 65.86% $ 21,049 3.27%
LIFESPAN B
1995(a) 1.55% 4.19% 78.13% $ 35,002 3.71%
LIFESPAN C
1995(a) 1.55% 3.57% 27.81% $ 26,330 4.22%
<FN>
(a) For the period from May 1, 1995 (Inception) to June 30, 1995
(b) Annualized
(c) Annual total returns do not include the effect of sales charges
</TABLE>
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
For the period from May 1, 1995
(Inception)
to 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 three LifeSpan
Accounts included in these financial statements: Diversified Income, Balanced
and Capital Appreciation. 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 - 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.
(b)FOREIGN CURRENCY TRANSACTIONS - Foreign currency transactions are
translated to U. S. dollars at the prevailing exchange rate on the trade
date. Since investment transactions are recorded on a trade date basis, the
prevailing exchange rate may differ on actual settlement date. Similarly,
the prevailing exchange rate on ex-dividend or interest receivable date may
vary from the date when dividends or interest are received. These
differences give rise to currency gains and losses which are included as a
component of investment income. For the two months ended June 30, 1995, the
Balanced Account and the Capital Appreciation Account had net currency
gains of $6,050 and $5,867, respectively.
(c)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 owns
7,887,268 shares of the three LifeSpan Accounts of the Fund as follows:
Diversified Income Balanced Capital Appreciation
2,014,946 3,359,773 2,512,549
(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. Subject to review by the Board of Directors of the Fund,
the Investment Adviser is responsible for the investment management (the
buying, holding and selling of securities) for all Accounts and has engaged
three Sub-Advisers to assist in the selection of portfolio investments for
three of the Components of the Accounts. Scudder, Stevens & Clark, Inc. is the
Sub-Adviser to the International Equity Component, BEA Associates is the
Sub-Adviser to the High Yield Bond Component and Pilgrim Baxter & Associates
is the Sub-Adviser to the Small Cap Component. The Fund's Board of Directors
has approved all Sub-Advisory Agreements. The Investment Adviser performs
certain administrative services for all the Accounts.
The Diversified Income Account, Balanced Account and Capital Appreciation
Account each pay monthly to the Investment Adviser a fee equal on an annual
basis to 0.75%, 0.85% and 0.85%, respectively, of the respective Accounts'
first $250 million of average daily net assets and 0.65%, 0.75% and 0.75%,
respectively, on such assets over $250 million.
21
<PAGE>
The investment advisory fees, which also cover certain administrative and
management services, amounted to $108,734 for all Accounts for the two months
ended June 30, 1995. As compensation for their services to the Accounts, the
Sub-Advisers received the following fees for the two months ending June 30,
1995: Scudder, Stevens & Clark, Inc. - $12,387, BEA Associates - $7,807 and
Pilgrim Baxter & Associates - $10,196. For the two months ended June 30, 1995,
the Investment Adviser, serving as principal underwriter for sale of shares of
the Accounts, earned $21,957 related to sales charges deducted from proceeds
for shares sold.
On May 1, 1995, each Account 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 pays G. R. Phelps & Co., Inc. (the
Distributor) a fee as reimbursement for its expenditures incurred in
distributing and servicing shares of the Account. The Accounts accrue fees
daily and pay 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 $32,973 in fees from these Accounts.
3. DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid monthly for the
Diversified Income Account and semi-annually for the Balanced and Capital
Appreciation Accounts. All net realized capital gains, 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, three 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 PERIOD FROM MAY 1, 1995 (INCEPTION) TO JUNE 30, 1995
DIVERSIFIED CAPITAL
INCOME BALANCED APPRECIATION
<S> <C> <C> <C>
Shares authorized (in millions) 200 200 200
---- ---- ----
---- ---- ----
Shares sold 2,038,477 3,374,190 2,528,138
Shares issued to shareholders from
reinvestment of dividends 14,950 19,960 12,689
------------ ---------- -------------
Total issued 2,053,427 3,394,150 2,540,827
Shares reacquired -- -- (999)
------------ ---------- -------------
Net increase 2,053,427 3,394,150 2,539,828
------------ ---------- -------------
------------ ---------- -------------
</TABLE>
22
<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.
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