<PAGE>
CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC.
---------------------------
1995 ANNUAL REPORT
DEAR CMIA SHAREHOLDER:
The stock and bond markets both turned in impressive performances last
year, making 1995 a banner year for investors. It was a year in which the Dow
Jones Industrial Average exceeded 5200 and the yield on the 30-year Treasury
bond dropped by almost 200 basis points.
What went right for the markets in 1995? Just about everything that
mattered.
We entered the year with a strong economy. The Central Bank, in a
tightening mode, had been increasing interest rates to head off inflation. The
November elections brought victory for the Republicans in Congress, signalling a
better political time for markets.
As expected, the increasing interest rates of 1994 and
early 1995 put the brakes on the economy, slowing it
sufficiently to avoid higher inflation, but not enough to
cause a recession. The Fed began to ease its grip on interest
rates, the dollar gathered strength, and inflation remained
stagnant -- setting a positive tone for the bond market and
providing a good backdrop for the stock market.
At the same time, corporate earnings grew vigorously and
the federal government continued moving toward greater fiscal
responsibility -- contributing to a superlative year for the
stock market.
Because our portfolio managers were anticipating this
type of environment, Connecticut Mutual Investment Accounts
(CMIA) investors were able to capitalize on market trends. All
of the CMIA funds performed well in their respective
categories.
The CMIA Liquid Account, as with all money market funds,
responded to lower inflation and lower interest rates with
modest returns. The CMIA Liquid Fund was up 5.11 percent for
the 12 months ended December 31, 1995 -- in line with the
category average of 5.37 percent, according to Lipper
Analytical Services, Inc.
The CMIA Income Account was up 11.72 percent, compared
with the category average increase of 10.84 percent for the 12
months ended December 31, 1995, according to Lipper. The Fund
was well-positioned for a decreasing interest rate environment
and held maturities that were a little longer than the average
bond fund.
The CMIA Total Return Account, with a mix of stocks,
bonds and cash, ended the 12 months with a 23.95 percent
increase, according to Lipper. The Fund maintained its strict
asset allocation discipline, but a slight underweight in
stocks contributed to its underperformance. The category
average was 25.16 percent.
The CMIA Growth Account boasted a 36.40 percent gain in
the 12 months ended December 31, 1995, according to Lipper,
outperforming the category average increase of 30.79 percent.
The Fund's investment discipline of looking for stocks with
low P/Es and positive earnings surprise contributed to its
impressive results.
The CMIA Government Securities Account performed well,
turning in a gain of 17.90 percent and outperforming the
category average of 17.34 percent for the 12 months, according
to Lipper. The Fund continued to de-emphasize mortgage-backed
securities and held bonds with maturities a little longer than
average.
We are certainly pleased with the performance of CMIA throughout 1995, and
we will continue to monitor economic and market conditions to help maintain
CMIA's position as a top-performing mutual fund.
You likely will find that the expertise of our investment professionals is
even more valuable as we grapple with the federal budget battle and anticipate
the Presidential elections in the months ahead.
ECONOMIC FORECAST: FIRST AND SECOND QUARTERS 1996
A look ahead at 1996 shows a continuation of 1995, with low inflation, a
slow economy and continued reductions in interest rates by the Fed. This
scenario --
combined with a strong dollar and decreasing rates overseas --
provides a favorable backdrop for the bond market.
In the bond market, the ingredients for still lower yields are
present, but most of the rally seems to be behind us. With our
inflation forecast of 2 percent, long-term treasury yields should be
about 6 percent.
A strong bond market and low interest rates should fuel more
growth in the stock market. That growth could, however, be dampened by
a lag in corporate earnings. Lackluster corporate earnings could
introduce downward pressures on the market and create some volatility.
Our investment managers also are keeping a close eye on
Washington. Although the current battle over the federal budget
signifies another step in the march toward fiscal responsibility, it
could create short-term volatility in the markets. The presidential
election in November bears watching as well.
Overall, the fundamentals are extraordinarily bullish: a slowing
economy, no inflation, improving prospects of a balanced federal
budget and falling short-term interest rates. Until these dynamics
change, we look forward to another strong year in the financial
markets.
SUMMARY
For most investors, the current bull market is a dream come true.
But, anyone who has watched the markets over time knows that
circumstances can change quickly and double-digit returns can easily
dwindle.
Successful investors anticipate those ups and downs and ride
them out -- because they know that, in the long run, the stock market
has provided financial rewards. That why we, too, stick to a tried and
true investment discipline designed to work in good times and in bad,
over time.
On the whole, we are pleased with the results of CMIA for 1995
and we hope you share our enthusiasm and optimism for the coming year.
If you want to know more about CMIA and the options available to you,
talk to your registered representative or call 1-800-234-5606.
David E. Sams, Jr.
PRESIDENT AND CHIEF EXECUTIVE OFFICER
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
THE CMIA ACCOUNTS
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
The 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, or
authorities or instrumentalities and by obligations that are fully
collateralized or otherwise fully backed by U.S. Government Securities.*
INCOME
This 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 stock 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>
LIQUID ACCOUNT
The CMIA Liquid Account showed a 5.11 percent increase -- about comparable
with the Lipper category average of 5.37 percent -- for the year ended December
31, 1995.
Money market yields were modest, consistent with low interest rates and low
inflation in 1995. We expect interest rates to remain low and money markets to
continue producing low yields
Over time, however, the CMIA Liquid Account has turned in respectable
results, with a 20.5% return for the five years ended December 31, 1995,
according to Lipper Analytical Services, Inc.
<TABLE>
<CAPTION>
FISCAL
PERIOD CMIA
ENDED LIQUID FUND CPI
- ----------- ----------- ---------
<S> <C> <C>
12/31/85 10,000 10,000
12/31/86 10,603 10,119
12/31/87 11,236 10,566
12/31/88 12,003 11,032
12/31/89 13,027 11,543
12/31/90 14,008 12,265
12/31/91 14,751 12,630
12/31/92 15,177 13,005
12/31/93 15,525 13,361
12/31/94 16,054 13,708
12/31/95 16,875 14,064
</TABLE>
Comparative performance of $10,000 invested in the CMIA Liquid Account and
the Consumer Price Index. The Consumer Price Index is an unmanaged index and
represents price changes in a broad market basket of consumer goods and is
indicative of the rate of inflation. AN INVESTMENT IN THE LIQUID ACCOUNT IS
NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE IS NO ASSURANCE
THAT THE MONEY MARKET INSTRUMENTS WILL BE ABLE TO MAINTAIN A STABLE NET ASSET
VALUE.
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
FOR PERIODS ENDED 12/31/95. THE W/O SC RETURNS DO NOT REFLECT THE EFFECTS
OF SALES CHARGES. THE W/ SC ASSUMES THE CURRENT MAXIMUM INITIAL SALES
CHARGES OF 2.00% FOR THE INCOME ACCOUNT, 4.00% FOR THE GOVERNMENT
SECURITIES ACCOUNT AND 5.00% FOR THE TOTAL RETURN AND GROWTH ACCOUNTS. THE
LIQUID ACCOUNT HAS NO INITIAL SALES CHARGES.
ALL PORTFOLIOS BECAME EFFECTIVE SEPTEMBER 16, 1985 EXCEPT FOR THE LIQUID
ACCOUNT WHICH WAS FIRST OFFERED TO THE PUBLIC ON MARCH 31, 1982.
STANDARD RETURNS ARE NET OF FUND EXPENSES AND INCLUDE REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS.
LIPPER RANKINGS DO NOT TAKE INTO CONSIDERATION THE EFFECT OF SALES CHARGES
AND HAD SALES CHARGES BEEN INCLUDED, THE PERFORMANCE RANKINGS MAY HAVE BEEN
LESS FAVORABLE.
GOVERNMENT
SECURITIES
ACCOUNT
The CMIA Government Securities Account outperformed the competition, turning
in a 17.90 percent return for the year ended December 31, 1996, compared with
17.34 percent for the Lipper category average.
We continued to de-emphasize mortgage-backed securities, which tend to
underperform in periods of falling interest rates. We also maintained bonds with
maturities a little longer than average, which paid off well in last year's
falling rate environment.
We will continue with these strategies as we look for interest rates to
remain low and the bond market to remain healthy.
Over the past five years ended December 31, 1995, the CMIA Government
Securities Account has provided a return of 51.67 percent.
<TABLE>
<CAPTION>
CMIA
FISCAL GOVERNMENT MERRILL LYNCH
PERIOD SECURITIES GOVERNMENT
ENDED FUND CPI MASTER INDEX
- ----------- --------- --------- -------------
<S> <C> <C> <C>
12/31/85 10,000 10,000 10,000
12/31/86 10,719 10,119 11,539
12/31/87 11,076 10,566 11,789
12/31/88 11,961 11,032 12,627
12/31/89 13,648 11,543 14,412
12/31/90 14,936 12,265 15,684
12/31/91 17,181 12,630 18,069
12/31/92 18,224 13,005 19,376
12/31/93 19,966 13,361 21,435
12/31/94 19,132 13,708 20,743
12/31/95 22,558 14,064 24,540
</TABLE>
Comparative performance of $10,000 invested in the CMIA Government
Securities Account, the Merrill Lynch Government Master Index and the Consumer
Price Index. The Merrill Lynch Government Master Index represents a broad index
of unmanaged Government bonds not adjusted for expenses. If portfolio expenses
had been applied to the index, its ending value would have been lower. The
Consumer Price Index is an unmanaged index and represents price changes in a
broad market basket of consumer goods and is indicative of the rate of
inflation.
Past performance is not predictive of future performance.
FOR EACH ACCOUNT, THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
INVESTMENT.
INCOME ACCOUNT
The CMIA Income Account had another very competitive year, providing a
return of 11.72 percent -- compared with the Lipper category average of 10.84
percent for other investment guide short-term bond funds.
The Fund continued to invest in high quality corporate bonds and was
well-positioned for the declining interest rate environment. In line with our
economic views, we held bonds with slightly longer than average maturities. We
continued our conservative management approach and maintained relatively stable
net asset values.
The CMIA Income account, in fact, was cited by U.S. NEWS & WORLD REPORT on
January 29, 1996 as one of the "best funds for the long haul" -- funds that are
"tops at rewarding investors over time."
As interest rates and inflation remain low, we expect bond funds such as the
CMIA Income Account to continue to perform well.
<TABLE>
<CAPTION>
SALOMON
BROTHERS
1-3 YEAR
TREASURY/
FISCAL GOVERNMENT
PERIOD CMIA SPONSORED/
ENDED INCOME FUND CPI CORPORATE INDEX
- ----------- ----------- --------- ---------------
<S> <C> <C> <C>
12/31/85 10,000 10,000 10,000
12/31/86 10,900 10,119 11,046
12/31/87 11,121 10,566 11,677
12/31/88 11,886 11,032 12,424
12/31/89 13,001 11,543 13,782
12/31/90 13,824 12,265 15,119
12/31/91 15,789 12,630 16,911
12/31/92 16,831 13,005 18,002
12/31/93 18,173 13,361 19,017
12/31/94 18,097 13,708 19,133
12/31/95 20,227 14,064 21,216
</TABLE>
Comparative performance of $10,000 invested in the CMIA Income Account, the
Salomon Brothers 1-3 Year Treasury/Government Sponsored/Corporate Index and the
Consumer Price Index. The Salomon Brothers Index represents an unmanaged group
of bonds not adjusted for operating expenses. If portfolio operating expenses
had been applied to the index, its ending value would have been lower. The
Consumer Price Index is an unmanaged index and represents price changes in a
broad market basket of consumer goods and is indicative of the rate of
inflation.
In the fourth quarter of 1987, the Income Account investment objectives
changed from a general bond fund to investing primarily in fixed-income debt
securities that generally mature within five years of purchase.
Past performance is not predictive of future performance.
2
<PAGE>
TOTAL RETURN
ACCOUNT
The CMIA Total Return Account posted a 23.95 percent increase for the year
ended December 31, 1995, performing near the Lipper category average of 25.16
percent.
This Fund holds stocks, bonds and cash -- each managed with the same
investment disciplines used in our CMIA stock, bond and money market accounts.
In addition, we vary the mix of stocks, bonds and cash in line with a
quantitatively based, value-oriented asset allocation discipline.
Although the return of the Total Return Account was excellent last year, it
was below the category average because of a slight underweight in stocks. We
maintained our stock weighting near 40 percent for most of the year, consistent
with our asset allocation discipline.
The impact of imbalance in the stock/bond weighting was lessened somewhat by
our good stock selection -- producing about average performance.
Over time, the CMIA Total Return Account has provided healthy returns:
Five Years Ten Years
CMIA 98.13% 211.15%
Avg. Balanced Fund 85.12% 196.14%
<TABLE>
<CAPTION>
FISCAL
PERIOD CMIA TOTAL
ENDED RETURN FUND CPI
- ----------- ----------- ---------
<S> <C> <C>
12/31/85 00,000 00,000
12/31/86 00,000 00,000
12/31/87 00,000 00,000
12/31/88 00,000 00,000
12/31/89 00,000 00,000
12/31/90 00,000 00,000
12/31/91 00,000 00,000
12/31/92 00,000 00,000
12/31/93 00,000 00,000
12/31/94 00,000 00,000
12/31/95 00,000 00,000
</TABLE>
Comparative performance of $10,000 invested in the CMIA Total Return
Account, the Merrill Lynch Corporate & Government Master Index, the S&P 500 and
the Consumer Price Index. The Merrill Lynch Government Corporate Master Index
represents an unmanaged group of bonds not adjusted for operating expenses. The
S&P 500 represents a broad index of unmanaged securities not adjusted for
expenses. If portfolio expenses had been applied to these indices, their ending
values would have been lower. The Consumer Price Index is an unmanaged index and
represents price changes in a broad market basket of consumer goods and is
indicative of the rate of inflation.
Past performance is not predictive of future performance.
GROWTH ACCOUNT
The CMIA Growth Account had a strong year in 1995, returning 36.40 percent
to investors, according to Lipper Analytical Services Inc. That performance
outshone the average growth fund, which Lipper said returned 30.79 percent.
The Growth Account's stellar performance can be attributed to two factors.
First was our consistent strategy of buying stocks with low price-earnings
ratios and positive earnings surprise. Second was the fund's strong performance
in the fourth quarter -- a quarter in which other stock funds were battered by
the underperformance of technology stocks. Because we adhered to our discipline
and didn't chase after the technology stock fad, we were able to avoid the fall
and come out ahead.
Our discipline calls for us to find stocks that are undervalued and out of
favor but are starting to show earnings momentum. This discipline has worked
well over time as evidenced by the long-term results of the CMIA Growth Fund:
Five Years Ten Years
CMIA 151.12% 298.62%
Avg. Growth Fund 113.44% 251.83%
SOURCE: LIPPER ANALYTICAL SERVICES
The CMIA Growth Fund was cited by U.S. NEWS & WORLD REPORT in its January
29, 1996, issue as one of the "best funds for the long haul."
<TABLE>
<CAPTION>
FISCAL
PERIOD CMIA
ENDED GROWTH FUND CPI
- ----------- ----------- ---------
<S> <C> <C>
12/31/85 00,000 00,000
12/31/86 00,000 00,000
12/31/87 00,000 00,000
12/31/88 00,000 00,000
12/31/89 00,000 00,000
12/31/90 00,000 00,000
12/31/91 00,000 00,000
12/31/92 00,000 00,000
12/31/93 00,000 00,000
12/31/94 00,000 00,000
12/31/95 00,000 00,000
</TABLE>
Comparative performance of $10,000 invested in the CMIA Growth Account, the
S&P 500 and the Consumer Price Index. The S&P 500 represents a broad index of
unmanaged securities not adjusted for expenses. If portfolio expenses had been
applied to the index, its ending value would have been lower. The Consumer Price
Index is an unmanaged index and represents price changes in a broad market
basket of consumer goods and is indicative of the rate of inflation.
Past performance is not indicative of future performance.
3
<PAGE>
CONNECTICUT MUTUAL
INVESTMENT ACCOUNTS, INC.
F I N A N C I A L
S T A T E M E N T S
- ----------DECEMBER 31, 1995
Liquid Account
Government Securities Account
Income Account
Total Return Account
Growth Account
<PAGE>
<TABLE>
<S> <C>
PERFORMANCE -- TOTAL RETURN*
</TABLE>
SALES CHARGE ADJUSTED PERFORMANCE AS OF 12/31/95* -- AFTER EXPENSES
<TABLE>
<S> <C> <C> <C> <C>
AVERAGE ANNUALIZED
ACCOUNTS ONE YEAR FIVE YEAR TEN YEAR SINCE INCEPTION
LIQUID** 5.11% 3.79% 5.37% 6.44%
GOVERNMENT SECURITIES 13.18% 7.71% 8.48% 9.17%
INCOME 7.29% 7.03% 7.30% 7.87%
TOTAL RETURN 17.75% 13.48% 11.45% 12.17%
GROWTH 29.58% 19.00% 14.25% 14.93%
<CAPTION>
30 DAY
CURRENT YIELD
ACCOUNTS AS OF 12/31/95
LIQUID** 4.72%
GOVERNMENT SECURITIES 4.89%
INCOME 5.41%
TOTAL RETURN
GROWTH
</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 12/31/95* -- AFTER EXPENSES
<TABLE>
<S> <C> <C> <C> <C>
AVERAGE ANNUALIZED
ACCOUNTS ONE YEAR FIVE YEAR TEN YEAR SINCE INCEPTION
LIQUID** 5.11% 3.79% 5.37% 6.44%
GOVERNMENT SECURITIES 17.90% 8.59% 8.92% 9.61%
INCOME 11.77% 7.91% 7.74% 8.30%
TOTAL RETURN 23.95% 14.65% 12.02% 12.73%
GROWTH 36.40% 20.23% 14.84% 15.50%
<CAPTION>
7-DAY
CURRENT YIELD
ACCOUNTS AS OF 12/31/95
LIQUID** 4.73%
GOVERNMENT SECURITIES
INCOME
TOTAL RETURN
GROWTH
</TABLE>
Actual Portflio 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 not guaranteed by the U.S. Government.
1
<PAGE>
<TABLE>
<S> <C>
SCHEDULE OF INVESTMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC.
December 31, 1995
</TABLE>
LIQUID ACCOUNT
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
COMMERCIAL PAPER
(95.9% OF NET ASSETS)
American Express Credit Corp.
$ 1,300,000 5.60%, due 3/5/96 $ 1,300,000
950,000 5.63%, due 3/20/96 950,000
700,000 5.53%, due 3/29/96 700,000
American Home Products Corp.
1,500,000 5.60%, due 3/4/96 1,485,300
Anheuser-Busch Companies, Inc.
1,000,000 5.55%, due 3/6/96 989,979
Banc One Corp.
1,600,000 5.68%, due 1/19/96 1,595,456
Beneficial Corp.
800,000 5.66%, due 1/3/96 799,748
1,500,000 5.50%, due 4/8/96 1,477,542
Cargill, Inc.
1,500,000 5.65%, due 1/16/96 1,496,469
1,000,000 5.55%, due 3/4/96 990,287
Cargill Financial Services Corp.
1,000,000 5.52%, due 6/3/96 976,387
Carolina Telephone & Telegraph Co.
775,000 5.87%, due 1/2/96 774,874
Clorox Company
1,125,000 5.53%, due 3/11/96 1,112,903
Corporate Asset Funding Co., Inc.
1,500,000 5.67%, due 1/24/96 1,494,566
1,100,000 5.625%, due 2/22/96 1,091,062
Corporate Receivables Corp.
725,000 5.68%, due 2/6/96 720,882
1,500,000 5.68%, due 2/7/96 1,491,243
Electronic Data Systems Corp.
1,500,000 5.70%, due 1/4/96 1,499,287
Ford Motor Credit Co.
1,300,000 5.55%, due 1/12/96 1,297,795
1,400,000 5.69%, due 2/5/96 1,400,000
910,000 5.69%, due 2/12/96 910,000
Gateway Fuel Co.
1,500,000 5.63%, due 1/26/96 1,494,135
General Electric Capital Corp.
1,000,000 5.58%, due 2/8/96 994,110
1,000,000 5.65%, due 2/16/96 992,781
1,000,000 5.58%, due 4/4/96 985,430
500,000 5.50%, due 4/15/96 491,979
Golden Peanut Co.
2,130,000 5.62%, due 3/7/96 2,108,054
Heinz (H.J.) Co.
1,000,000 5.80%, due 1/30/96 995,328
2,000,000 5.75%, due 2/2/96 1,989,778
Hewlett-Packard Co.
1,050,000 5.70%, due 1/2/96 1,049,834
1,000,000 5.42%, due 3/19/96 988,257
Household Finance Corp.
1,000,000 5.70%, due 2/9/96 993,825
International Lease Finance Corp.
1,100,000 5.67%, due 1/11/96 1,098,267
2,220,000 5.65%, due 2/26/96 2,200,489
McGraw-Hill Inc.
1,500,000 5.52%, due 3/11/96 1,483,900
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
MCI Communications Corp.
$ 1,000,000 5.53%, due 2/28/96 $ 991,091
Merrill Lynch & Co., Inc.
1,250,000 5.72%, due 1/18/96 1,246,624
1,000,000 5.63%, due 2/21/96 992,024
Monsanto Co.
1,000,000 5.80%, due 1/23/96 996,456
Morgan (J.P.) & Company, Inc.
1,100,000 5.58%, due 3/15/96 1,087,383
1,500,000 5.45%, due 3/18/96 1,482,515
Morgan Guaranty Trust Co.
1,000,000 5.57%, due 3/1/96 990,717
National Rural Utilities
Cooperative Finance Corp.
1,100,000 5.68%, due 1/9/96 1,098,612
Norwest Corp.
1,600,000 5.67%, due 2/23/96 1,586,644
PHH Corporation
1,500,000 5.68%, due 1/8/96 1,498,343
1,000,000 5.65%, due 1/17/96 997,489
1,000,000 5.70%, due 1/29/96 995,567
Penney (J.C.) Funding Corp.
1,500,000 5.60%, due 2/29/96 1,486,233
Republic National Bank of New York
2,000,000 5.57%, due 2/1/96 1,990,407
Swiss Bank Corp.
1,000,000 5.67%, due 3/25/96 999,769
Tampa Electric Co.
1,200,000 5.67%, due 1/29/96 1,194,708
Transamerica Finance Corp.
1,000,000 5.60%, due 1/5/96 999,378
1,400,000 5.65%, due 1/5/96 1,399,121
1,090,000 5.71%, due 1/16/96 1,087,407
U.S. Bancorp
1,000,000 5.55%, due 2/13/96 993,371
2,450,000 5.50%, due 2/22/96 2,430,536
Xerox Corp.
1,500,000 5.70%, due 1/10/96 1,497,862
1,150,000 5.69%, due 1/17/96 1,147,092
1,100,000 5.70%, due 1/22/96 1,096,342
-----------
TOTAL COMMERCIAL PAPER
(COST $72,705,638) 72,705,638
-----------
U.S. GOVERNMENT & AGENCY
SHORT-TERM OBLIGATIONS
(4.0% OF NET ASSETS)
Student Loan Marketing Assn.
2,000,000 5.23%, due 5/14/96 2,000,000
U.S. Treasury Note
1,000,000 6.125%, due 7/31/96 1,001,875
-----------
TOTAL U.S. GOVERNMENT AGENCY
SHORT-TERM OBLIGATIONS
(COST $3,001,875) 3,001,875
-----------
TOTAL INVESTMENTS
(COST $75,707,513) $75,707,513
-----------
-----------
</TABLE>
4 The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
GOVERNMENT SECURITIES ACCOUNT INCOME ACCOUNT
</TABLE>
3
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
U.S. GOVERNMENT & AGENCY LONG-TERM
OBLIGATIONS
(97.4% OF NET ASSETS)
Federal National Mortgage Assn.
$ 870,467 7.00%, 2019 $ 876,178
Government National Mortgage Assn.
62,393 11.50%, 1998 65,980
31,954 9.50%, 2001 33,581
46,713 7.25%, 2005 48,844
297,452 7.50%, 2006 310,260
187,668 8.00%, 2006 197,716
450,852 8.00%, 2007 470,293
168,055 8.25%, 2008 177,600
78,352 9.00%, 2008 83,871
501,423 9.00%, 2009 537,000
74,173 13.00%, 2011 88,057
3,408 13.50%, 2011 4,099
52,664 14.00%, 2011 64,316
31,389 15.00%, 2011 38,461
3,466 12.00%, 2012 4,018
107,759 13.50%, 2012 128,856
166,026 15.00%, 2012 203,214
104,227 11.50%, 2013 119,329
44,287 13.00%, 2013 52,482
174,954 13.50%, 2013 210,436
82,420 12.00%, 2014 95,813
280,426 12.50%, 2014 330,306
137,371 13.00%, 2014 163,084
1,406 13.50%, 2014 1,692
422,135 7.375%, 2017 428,995
391,370 10.00%, 2019 430,749
62,082 12.50%, 2019 72,113
2,092,796 6.50%, 2023 2,075,782
1,251,999 7.00%, 2023 1,267,350
U.S. Treasury Bond
8,500,000 9.25%, 2016 11,683,505
U.S. Treasury Notes
3,500,000 8.875%, 1997 3,725,295
6,750,000 9.25%, 1998 7,403,872
2,500,000 6.75%, 1999 2,614,050
1,500,000 9.125%, 1999 1,673,910
2,500,000 7.50%, 2001 2,753,525
4,050,000 11.75%, 2001 5,201,091
4,450,000 7.25%, 2004 4,948,533
-----------
TOTAL U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(COST $46,462,748) 48,584,256
-----------
REPURCHASE AGREEMENTS*
(.7% OF NET ASSETS)
State Street Bank & Trust Co.
4.75%, due 1/2/96 (COST
377,000 $377,000) 377,000
-----------
TOTAL INVESTMENTS
(COST $46,839,748) $48,961,256
-----------
-----------
</TABLE>
*Repurchase agreements are fully collateralized by U.S. Government
obligations.
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
CORPORATE BONDS
(68.7% OF NET ASSETS)
AEROSPACE (1.7%)
British Aerospace Finance BV
$ 300,000 8.00%, 1997 $ 309,000
Coltec Industries Inc.
250,000 9.75%, 2000 257,500
-----------
566,500
-----------
AIRLINES (1.6%)
Southwest Airlines Co.
500,000 9.25%, 1998 533,600
-----------
AUTO & AUTO RELATED (2.4%)
Burmah Castrol Capital, Ltd.
500,000 7.00%, 1997 513,800
Ford Motor Co.
286,301 6.27%, 2000 289,261
-----------
803,061
-----------
BANKING (8.6%)
Barnett Banks, Inc.
325,000 8.50%, 1999 351,111
Chemical Banking Corp.
325,000 6.625%, 1998 331,269
Citicorp
325,000 9.46%, 1996 328,731
First Fidelity Bancorporation
325,000 8.50%, 1998 342,885
First Union Corp.
325,000 6.75%, 1998 331,103
Home Savings of America
500,000 10.50%, 1997 504,475
Mellon Financial Co.
325,000 6.50%, 1997 330,223
Security Pacific Corp.
325,000 7.75%, 1996 331,097
-----------
2,850,894
-----------
BROKER/DEALER (1.0%)
Merrill Lynch & Co., Inc.
325,000 8.25%, 1996 330,912
-----------
CHEMICALS (2.0%)
FMC Corp.
250,000 8.75%, 1999 269,248
Lyondell Petrochemical Co.
400,000 8.25%, 1997 410,320
-----------
679,568
-----------
CONGLOMERATES (1.2%)
Tenneco, Inc.
375,000 10.00%, 1998 412,237
-----------
ELECTRIC UTILITIES (3.8%)
Consumers Power Co.
250,000 8.75%, 1998 263,335
Long Island Lighting Co.
500,000 8.75%, 1996 506,145
</TABLE>
5
<PAGE>
INCOME ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Midwest Power Systems Inc.
$ 500,000 6.25%, 1998 $ 505,235
-----------
1,274,715
-----------
ELECTRICAL & ELECTRONIC EQUIPMENT
(1.5%)
Westinghouse Electric Corp.
500,000 7.75%, 1996 502,105
-----------
FINANCIAL SERVICES (13.0%)
American General Finance Corp.
300,000 8.50%, 1998 320,706
Associates Corp. of North America
300,000 7.40%, 1999 316,149
Avco Financial Services, Inc.
500,000 5.875%, 1997 501,975
Banque Nationale de Paris
205,000 9.875%, 1998 224,157
Beneficial Corp.
500,000 9.125%, 1998 534,940
Countrywide Funding Corp.
300,000 6.57%, 1997 304,269
General Motors Acceptance Corp.
500,000 5.65%, 1997 500,675
Green Tree Financial Corp.
250,000 7.70%, 2019 260,232
Household Financial
Corporation Ltd.
250,000 6.00%, 1998 251,853
Household International
Netherlands BV
250,000 6.00%, 1999 251,222
Norwest Financial, Inc.
325,000 6.50%, 1997 330,275
Transamerica Finance Group, Inc.
500,000 7.42%, 1998 517,065
-----------
4,313,518
-----------
FOOD & BEVERAGES (4.6%)
ConAgra, Inc.
500,000 9.75%, 1997 532,925
Grand Metropolitan Investment
Corp.
325,000 8.125%, 1996 329,602
Nabisco Brands Inc.
325,000 8.00%, 2000 345,443
Seagram Company Ltd.
300,000 9.75%, 2000 304,167
-----------
1,512,137
-----------
INSURANCE (1.2%)
SunAmerica Inc.
370,000 9.00%, 1999 399,186
-----------
LEASING (2.6%)
Penske Truck Leasing Co.
325,000 7.75%, 1999 339,417
U.S. Leasing International Inc.
500,000 7.00%, 1997 511,645
-----------
851,062
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
LEISURE & ENTERTAINMENT (.8%)
Blockbuster Entertainment Corp.
$ 250,000 6.625%, 1998 $ 252,798
-----------
MANUFACTURING (.8%)
First Brands Corp.
265,000 9.125%, 1999 273,679
-----------
MORTGAGE-BACKED SECURITIES (2.9%)
GE Capital Mortgage Services, Inc.
135,893 6.50%, 2024 135,596
Housing Securities, Inc.
193,964 7.25%, 2012 196,752
Ryland Mortgage Securities Corp.
413,677 8.339%, 2030 417,167
Salomon Brothers, Inc.
239,258 0.00%, 2017 (principal only) 174,881
161,680 12.50%, 2017 44,664
-----------
969,060
-----------
OFFICE EQUIPMENT (.8%)
Xerox Corp.
270,000 9.20%, 1999 274,450
-----------
OIL & GAS (6.8%)
Arkla, Inc.
505,000 9.875%, 1997 525,513
Coastal Corp.
325,000 8.75%, 1999 350,681
Empresa Columbia de Petroleos
250,000 7.25%, 1998 249,375
Florida Gas Transmission Co.
500,000 7.75%, 1997 516,745
Phillips Petroleum Co.
458,313 7.53%, 1998 470,781
Transcontinental Gas Pipe Line
Corp.
150,000 9.00%, 1996 153,974
-----------
2,267,069
-----------
PAPER & FOREST PRODUCTS (2.0%)
Celulosa Arauco y Constitucion SA
350,000 7.25%, 1998 359,187
Georgia-Pacific Corp.
300,000 9.85%, 1997 316,293
-----------
675,480
-----------
PRINTING & PUBLISHING (2.6%)
Reed Publishing USA Inc.
325,000 7.24%, 1997 330,986
Time Warner Inc.
500,000 7.45%, 1998 513,925
-----------
844,911
-----------
RETAIL TRADE (1.0%)
Sears, Roebuck & Co.
300,000 8.39%, 1999 322,965
-----------
SAVINGS & LOAN (1.1%)
Golden West Financial Corp.
325,000 8.625%, 1998 346,986
-----------
</TABLE>
6 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>
TELECOMMUNICATIONS (.9%)
Tele-Communications, Inc.
$ 315,000 5.28%, 1996 $ 313,743
-----------
TELEPHONE UTILITIES (1.9%)
GTE Corp.
300,000 8.85%, 1998 319,845
MCI Communications Corp.
300,000 7.625%, 1996 304,779
-----------
624,624
-----------
TOBACCO (1.9%)
B.A.T Capital Corp.
300,000 6.66%, 2000 306,930
Philip Morris Companies Inc.
300,000 8.75%, 1996 308,247
-----------
615,177
-----------
TOTAL CORPORATE BONDS
(COST $22,975,602) 22,810,437
-----------
U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(25.6% OF NET ASSETS)
Federal Home Loan Mortgage Corp.
130,372 5.50%, 1997 129,241
369,783 5.50%, 1998 366,199
Federal National Mortgage Assn.
813,043 7.50%, 2008 836,158
822,819 7.00%, 2009 837,983
250,000 6.00%, 2019 249,295
Government National Mortgage Assn.
387,056 7.00%, 2009 396,004
45,963 13.00%, 2014 54,566
U.S. Treasury Notes
3,350,000 6.75%, 1999 3,502,827
1,950,000 7.75%, 1999 2,116,062
-----------
TOTAL U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS (COST
$8,352,192) 8,488,335
-----------
COMMERCIAL PAPER
(3.8% OF NET ASSETS)
Carolina Telephone & Telegraph Co.
1,250,000 5.87%, due 1/2/96 1,249,796
-----------
TOTAL INVESTMENTS
(COST $32,577,590) $32,548,568
-----------
-----------
</TABLE>
TOTAL RETURN ACCOUNT
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
COMMON STOCKS
(42.5% OF NET ASSETS)
AEROSPACE (4.2%)
22,600 General Dynamics Corp. $1,336,225
29,671 Lockheed Martin Corp. 2,344,009
80,300 Loral Corp. 2,840,612
19,000 McDonnell Douglas Corp. 1,748,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
17,600 Rockwell International Corp. $ 930,600
------------
9,199,446
------------
AIRLINES (1.5%)
12,400 AMR Corp. 920,700
15,900 Delta Air Lines, Inc. 1,174,612
25,100 Northwest Airlines Corp. 1,280,100
------------
3,375,412
------------
BANKING (4.0%)
42,800 Bank of Boston Corp. 1,979,500
12,600 Bankers Trust New York Corp. 837,900
32,400 Chase Manhattan Corp. 1,964,250
21,300 Morgan (J.P.) & Company, Inc. 1,709,325
34,100 PNC Bank Corp. 1,099,725
5,400 Wells Fargo & Co. 1,166,400
------------
8,757,100
------------
BUILDING MATERIALS & CONSTRUCTION
(.5%)
33,800 USG Corp. 1,014,000
------------
CHEMICALS (4.0%)
9,600 Cabot Corp. 517,200
16,000 FMC Corp. 1,082,000
15,000 Goodrich (B.F.) Co. 1,021,875
28,800 Grace (W.R.) & Co. 1,702,800
39,600 IMC Global, Inc. 1,618,650
12,000 Monsanto Co. 1,470,000
Potash Corporation of Saskatchewan
19,800 Inc. 1,403,325
------------
8,815,850
------------
CONGLOMERATES (1.5%)
26,000 Textron, Inc. 1,755,000
41,600 Tyco International Ltd. 1,482,000
------------
3,237,000
------------
DRUGS & COSMETICS (.4%)
9,500 American Home Products Corp. 921,500
------------
ELECTRIC UTILITIES (3.0%)
50,700 Entergy Corp. 1,482,975
37,300 FPL Group, Inc. 1,729,787
33,900 Illinova Corp. 1,017,000
10,600 Texas Utilities Co. 435,925
54,300 Unicom Corp. 1,778,325
------------
6,444,012
------------
FOOD & BEVERAGES (.4%)
24,100 Dole Food Company, Inc. 843,500
------------
HEALTH SERVICES & HOSPITAL SUPPLIES
(1.6%)
24,100 Baxter International Inc. 1,009,188
28,700 Columbia Healthcare Corp. 1,456,525
44,300 OrNda HealthCorp. 1,029,975
------------
3,495,688
------------
INSURANCE (4.2%)
26,500 Aetna Life & Casualty Co. 1,835,125
</TABLE>
7
<PAGE>
TOTAL RETURN ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
41,381 Allstate Corp. $1,701,794
12,600 CIGNA Corp. 1,300,950
15,300 St. Paul Companies Inc. 851,062
36,100 TIG Holdings, Inc. 1,028,850
39,200 Travelers Group 2,464,700
------------
9,182,481
------------
LEISURE RELATED (.5%)
37,675 Mattel, Inc. 1,158,506
------------
MACHINERY & EQUIPMENT (2.3%)
26,300 AGCO Corp. 1,341,300
38,400 Case Corp. 1,756,800
11,400 Harnischfeger Industries, Inc. 379,050
33,390 Mark IV Industries, Inc. 659,453
25,650 Parker-Hannifin Corp. 878,513
------------
5,015,116
------------
MANUFACTURING (.4%)
25,300 Black & Decker Corp. 891,825
------------
MISCELLANEOUS (.8%)
35,800 Premark International, Inc. 1,812,375
------------
OFFICE EQUIPMENT (.8%)
12,400 Xerox Corp. 1,698,800
------------
OIL & GAS (3.3%)
13,400 Amoco Corp. 963,125
26,400 Chevron Corp. 1,386,000
16,400 Mobil Corp. 1,836,800
71,200 Panhandle Eastern Corp. 1,984,700
8,000 Royal Dutch Petroleum Co. 1,129,000
------------
7,299,625
------------
PAPER & FOREST PRODUCTS (.9%)
24,336 Kimberly-Clark Corp. 2,013,804
------------
REAL ESTATE (.1%)
8,033 Castle & Cooke Inc. 134,558
------------
RETAIL TRADE (2.5%)
25,100 Eckerd Corp. 1,120,088
49,700 Kroger Co. 1,863,750
42,700 Sears, Roebuck & Co. 1,665,300
37,100 Service Merchandise Co., Inc. 185,500
37,000 Waban Inc. 693,750
------------
5,528,388
------------
SAVINGS & LOAN (.5%)
39,000 Ahmanson (H.F.) & Co. 1,033,500
------------
TECHNOLOGY (2.8%)
26,000 Compaq Computer Corp. 1,248,000
21,200 Conner Peripherals, Inc. 445,200
20,900 Seagate Technology Inc. 992,750
30,600 Storage Technology Corp. 730,575
38,600 Stratus Computer, Inc. 1,336,525
28,000 Sun Microsystems, Inc. 1,277,500
------------
6,030,550
------------
TELEPHONE UTILITIES (2.3%)
31,400 Ameritech Corp. 1,852,600
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
37,100 GTE Corp. $1,632,400
27,200 NYNEX Corp. 1,468,800
------------
4,953,800
------------
TOTAL COMMON STOCKS
(COST $70,464,960) 92,856,836
------------
PRINCIPAL CORPORATE BONDS
AMOUNT (16.3% OF NET ASSETS)
AEROSPACE (.4%)
British Aerospace Finance BV
$ 500,000 8.00%, 1997 515,000
Coltec Industries, Inc.
250,000 9.75%, 2000 257,500
------------
772,500
------------
AUTO & AUTO RELATED (.2%)
Burmah Castrol Capital, Ltd.
500,000 7.00%, 1997 513,800
------------
BANKING (1.2%)
BankAmerica Corp.
500,000 6.00%, 1997 503,515
Chemical Banking Corp.
250,000 10.125%, 2000 293,310
First Fidelity Bancorporation
500,000 8.50%, 1998 527,515
Fleet Financial Group, Inc.
250,000 9.90%, 2001 292,550
Marshall & Ilsley Corp.
500,000 6.95%, 1997 508,285
Mellon Financial Co.
400,000 6.50%, 1997 406,428
------------
2,531,603
------------
CHEMICALS (1.4%)
FMC Corp.
500,000 8.75%, 1999 538,495
Lyondell Petrochemical Co.
1,100,000 8.25%, 1997 1,128,380
Morton International, Inc.
500,000 9.25%, 2020 653,780
PPG Industries, Inc.
250,000 9.00%, 2021 320,792
Reliance Industries Ltd.
400,000 8.125%, 2005 402,000
------------
3,043,447
------------
CONGLOMERATES (.7%)
Norsk Hydro
500,000 8.75%, 2001 562,500
Tenneco Credit Corp.
500,000 9.25%, 1996 513,235
Tenneco, Inc.
375,000 10.00%, 1998 412,238
------------
1,487,973
------------
DRUGS & COSMETICS (.5%)
Procter & Gamble Co.
250,000 9.36%, 2021 319,375
</TABLE>
8 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>
Roche Holdings Inc.
$ 950,000 2.75%, 2000 $ 845,500
------------
1,164,875
------------
ELECTRIC UTILITIES (.3%)
Long Island Lighting Co.
500,000 8.75%, 1996 506,145
Public Service Co. of New
Hampshire
250,000 8.875%, 1996 252,733
------------
758,878
------------
ELECTRICAL & ELECTRONIC
EQUIPMENT (.5%)
Electrolux
500,000 7.75%, 1997 514,062
Westinghouse Electric Corp.
500,000 7.75%, 1996 502,105
------------
1,016,167
------------
FINANCIAL SERVICES (4.2%)
American General Finance Corp.
500,000 7.70%, 1997 517,670
500,000 8.50%, 1998 534,510
Aristar, Inc.
250,000 8.125%, 1997 260,955
Associates Corp. of North America
500,000 6.75%, 1999 514,915
Countrywide Funding Corp.
250,000 6.57%, 1997 253,557
500,000 6.085%, 1999 503,090
Fleet Mortgage Corp.
1,000,000 6.125%, 1997 1,006,130
250,000 6.50%, 1999 255,380
Ford Motor Credit Co.
500,000 8.00%, 1997 520,760
500,000 6.25%, 1998 507,455
General Motors Acceptance Corp.
1,000,000 5.65%, 1997 1,001,350
750,000 7.75%, 1997 766,673
Green Tree Financial Corp.
500,000 8.00%, 2020 524,375
Household Financial Corporation
Ltd.
250,000 6.00%, 1998 251,853
Household International
Netherlands BV
500,000 6.00%, 1999 502,445
Norwest Financial, Inc.
500,000 6.50%, 1997 508,115
Transamerica Finance Corp.
500,000 6.75%, 1997 508,240
250,000 6.80%, 1999 257,702
------------
9,195,175
------------
FOOD & BEVERAGES (1.0%)
Bass America Inc.
250,000 6.75%, 1999 257,310
ConAgra, Inc.
500,000 9.75%, 1997 532,925
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
Nabisco Brands Inc.
$ 500,000 8.00%, 2000 $ 531,450
Seagram Company Ltd.
950,000 9.75%, 2000 963,195
------------
2,284,880
------------
INSURANCE (.2%)
SunAmerica Inc.
450,000 9.00%, 1999 485,496
------------
LEASING (.8%)
Penske Truck Leasing Co.
750,000 7.75%, 1999 783,270
PHH Corp.
350,000 6.50%, 2000 357,360
U.S. Leasing International Inc.
500,000 7.00%, 1997 511,645
------------
1,652,275
------------
LEISURE & ENTERTAINMENT (.2%)
Blockbuster Entertainment Corp.
500,000 6.625%, 1998 505,595
------------
MANUFACTURING (.2%)
Black & Decker Corp.
400,000 6.625%, 2000 408,032
------------
MORTGAGE-BACKED SECURITIES (.2%)
Fleet Mortgage Securities, Inc.
20,523 8.25%, 2023 20,523
Housing Securities, Inc.
310,342 7.25%, 2012 314,803
------------
335,326
------------
OIL & GAS (2.0%)
Arkla, Inc.
750,000 9.875%, 1997 780,465
BP America, Inc.
500,000 8.875%, 1997 530,165
Coastal Corp.
500,000 8.125%, 2002 546,885
Petroliam Nasional Berhad
500,000 6.875%, 2003 518,635
Phillips Petroleum Co.
916,625 7.53%, 1998 941,561
TransCanada Pipelines Ltd.
500,000 9.875%, 2021 672,620
Transco Energy Co.
250,000 9.625%, 2000 282,693
------------
4,273,024
------------
PAPER & FOREST PRODUCTS (.6%)
Celulosa Arauco y Constitucion SA
500,000 7.25%, 1998 513,125
Georgia-Pacific Corp.
750,000 9.85%, 1997 790,732
------------
1,303,857
------------
</TABLE>
9
<PAGE>
TOTAL RETURN ACCOUNT (cont'd)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
PRINTING & PUBLISHING (.5%)
Reed Elsevier, Inc.
$ 400,000 6.625%, 2023 $ 390,224
Time Warner Inc.
700,000 7.45%, 1998 719,495
------------
1,109,719
------------
RETAIL TRADE (.1%)
Sears, Roebuck & Co.
300,000 8.39%, 1999 322,965
------------
SAVINGS & LOAN (.2%)
Golden West Financial Corp.
500,000 10.25%, 1997 529,240
------------
TELECOMMUNICATIONS (.2%)
Tele-Communications, Inc.
400,000 7.15%, 1998 409,100
------------
TELEPHONE UTILITIES (.6%)
GTE Corp.
750,000 8.85%, 1998 799,612
MCI Communications Corp.
500,000 7.125%, 2000 520,950
------------
1,320,562
------------
TRANSPORTATION (.1%)
Federal Express Corp.
250,000 6.25%, 1998 252,062
------------
TOTAL CORPORATE BONDS
(COST $34,849,067) 35,676,551
------------
U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(18.3% OF NET ASSETS)
Federal Home Loan Mortgage Corp.
1,000,000 6.00%, 2007 955,930
Federal National Mortgage Assn.
1,207,257 7.50%, 2008 1,241,580
800,000 6.00%, 2019 797,744
653,381 7.00%, 2022 618,262
Government National Mortgage Assn.
645,858 7.00%, 2009 660,791
944,737 7.50%, 2009 976,914
574,570 8.00%, 2017 603,919
2,492,635 6.50%, 2023 2,472,370
3,625,377 6.50%, 2024 3,595,903
1,133,072 7.00%, 2024 1,146,522
U.S. Treasury Bonds
2,150,000 7.50%, 2016 2,520,875
8,250,000 8.75%, 2017 10,910,625
550,000 8.125%, 2019 691,537
U.S. Treasury Notes
3,120,000 6.75%, 1999 3,262,335
250,000 9.125%, 1999 278,985
2,500,000 7.50%, 2001 2,753,525
300,000 5.75%, 2003 303,609
5,620,000 7.25%, 2004 6,249,609
------------
TOTAL U.S. GOVERNMENT & AGENCY
LONG-TERM OBLIGATIONS
(COST $36,540,338) 40,041,035
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
FOREIGN GOVERNMENT BONDS
(.4% OF NET ASSETS)
Fomento Economico Mexicano
$ 450,000 9.50%, 1997 $ 447,188
Republic of Columbia
300,000 7.125%, 1998 300,000
United Mexican States
250,000 6.97%, 2000 205,000
------------
TOTAL FOREIGN GOVERNMENT BONDS
(COST $989,997) 952,188
------------
COMMERCIAL PAPER
(22.7% OF NET ASSETS)
Beneficial Corp.
4,075,000 5.77%, due 1/2/96 4,074,347
Carolina Telephone & Telegraph Co.
1,125,000 5.88%, due 1/5/96 1,124,265
Corporate Receivables Corp.
3,395,000 5.85%, due 1/9/96 3,390,586
Duke Power Co.
4,050,000 5.70%, due 1/5/96 4,047,435
Ford Motor Credit Co.
4,152,000 5.80%, due 1/3/96 4,152,000
General Electric Capital Corp.
3,747,000 5.80%, due 1/10/96 3,747,000
GTE California, Inc.
4,800,000 5.79%, due 1/8/96 4,794,596
Household Finance Corp.
2,015,000 5.77%, due 1/11/96 2,011,770
International Lease Finance Corp.
2,553,000 5.74%, due 1/4/96 2,551,779
Johnson Controls, Inc.
1,250,000 5.90%, due 1/2/96 1,249,795
Oklahoma Gas & Electric Co.
3,300,000 5.75%, due 1/5/96 3,297,892
Pacific Gas & Electric Co.
3,000,000 5.75%, due 1/16/96 2,992,813
PHH Corp.
5,750,000 5.85%, due 1/19/96 5,733,181
U S West Communications, Inc.
4,360,000 5.70%, due 1/4/96 4,357,929
Xerox Corp.
2,150,000 5.70%, due 1/11/96 2,146,596
------------
TOTAL COMMERCIAL PAPER
(COST $49,671,984) 49,671,984
------------
TOTAL INVESTMENTS
(COST $192,516,346) 2$19,198,594
------------
------------
</TABLE>
GROWTH ACCOUNT
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
COMMON STOCKS
(90.8% OF NET ASSETS)
AEROSPACE (8.9%)
25,400 General Dynamics Corp. $1,501,775
</TABLE>
10 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>
31,371 Lockheed Martin Corp. $2,478,309
83,400 Loral Corp. 2,950,275
24,500 McDonnell Douglas Corp. 2,254,000
26,900 Rockwell International Corp. 1,422,338
------------
10,606,697
------------
AIRLINES (3.2%)
15,700 AMR Corp. 1,165,725
14,400 Delta Air Lines, Inc. 1,063,800
30,000 Northwest Airlines Corp. 1,530,000
------------
3,759,525
------------
BANKING (9.0%)
48,500 Bank of Boston Corp. 2,243,125
16,800 Bankers Trust New York Corp. 1,117,200
35,200 Chase Manhattan Corp. 2,134,000
30,000 Morgan (J.P.) & Company, Inc. 2,407,500
45,700 PNC Bank Corp. 1,473,825
6,300 Wells Fargo & Co. 1,360,800
------------
10,736,450
------------
BUILDING MATERIALS &
CONSTRUCTION (1.1%)
42,400 USG Corp. 1,272,000
------------
CHEMICALS (9.0%)
12,900 Cabot Corp. 694,988
18,400 FMC Corp. 1,244,300
20,300 Goodrich (B.F.) Co. 1,382,938
28,700 Grace (W.R.) & Co. 1,696,887
54,700 IMC Global, Inc. 2,235,863
13,800 Monsanto Co. 1,690,500
Potash Corporation of Saskatchewan
24,100 Inc. 1,708,087
------------
10,653,563
------------
CONGLOMERATES (3.4%)
31,800 Textron, Inc. 2,146,500
51,800 Tyco International Ltd. 1,845,375
------------
3,991,875
------------
DRUGS & COSMETICS (.8%)
9,900 American Home Products Corp. 960,300
------------
ELECTRIC UTILITIES (6.0%)
62,500 Entergy Corp. 1,828,125
35,600 FPL Group, Inc. 1,650,950
35,000 Illinova Corp. 1,050,000
14,400 Texas Utilities Co. 592,200
62,600 Unicom Corp. 2,050,150
------------
7,171,425
------------
FOOD & BEVERAGES (.9%)
30,400 Dole Food Company, Inc. 1,064,000
------------
HEALTH SERVICES & HOSPITAL
SUPPLIES (3.3%)
23,200 Baxter International Inc. 971,500
32,700 Columbia Healthcare Corp. 1,659,525
57,000 OrNda HealthCorp 1,325,250
------------
3,956,275
------------
INSURANCE (8.6%)
24,000 Aetna Life & Casualty Co. 1,662,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
46,827 Allstate Corp. $1,925,760
16,100 CIGNA Corp. 1,662,325
26,700 St. Paul Companies Inc. 1,485,187
36,400 TIG Holdings, Inc. 1,037,400
39,500 Travelers Group 2,483,563
------------
10,256,235
------------
LEISURE RELATED (.9%)
35,968 Mattel, Inc. 1,106,016
------------
MACHINERY & EQUIPMENT (5.3%)
32,600 AGCO Corp. 1,662,600
44,000 Case Corp. 2,013,000
15,200 Harnischfeger Industries, Inc. 505,400
38,955 Mark IV Industries, Inc. 769,361
37,400 Parker-Hannifin Corp. 1,280,950
------------
6,231,311
------------
MANUFACTURING (.9%)
30,000 Black & Decker Corp. 1,057,500
------------
MISCELLANEOUS (1.7%)
39,000 Premark International, Inc. 1,974,375
------------
OFFICE EQUIPMENT (1.5%)
12,700 Xerox Corp. 1,739,900
------------
OIL & GAS (7.0%)
16,400 Amoco Corp. 1,178,750
32,200 Chevron Corp. 1,690,500
18,900 Mobil Corp. 2,116,800
73,100 Panhandle Eastern Corp. 2,037,663
9,400 Royal Dutch Petroleum Co. 1,326,575
------------
8,350,288
------------
PAPER & FOREST PRODUCTS (1.5%)
21,996 Kimberly-Clark Corp. 1,820,169
------------
REAL ESTATE (.1%)
10,133 Castle & Cooke Inc. 169,733
------------
RETAIL TRADE (5.4%)
29,200 Eckerd Corp. 1,303,050
52,300 Kroger Co. 1,961,250
53,100 Sears, Roebuck & Co. 2,070,900
46,900 Service Merchandise Co., Inc. 234,500
45,300 Waban Inc. 849,375
------------
6,419,075
------------
SAVINGS & LOAN (.9%)
40,400 Ahmanson (H.F.) & Co. 1,070,600
------------
TECHNOLOGY (6.4%)
31,500 Compaq Computer Corp. 1,512,000
26,500 Conner Peripherals, Inc. 556,500
25,600 Seagate Technology Inc. 1,216,000
47,300 Storage Technology Corp. 1,129,288
44,300 Stratus Computer, Inc. 1,533,887
35,800 Sun Microsystems, Inc. 1,633,375
------------
7,581,050
------------
TELEPHONE UTILITIES (5.0%)
33,000 Ameritech Corp. 1,947,000
</TABLE>
11
<PAGE>
GROWTH ACCOUNT (cont'd)
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES SECURITY VALUE
<C> <S> <C>
44,500 GTE Corp. $1,958,000
37,300 NYNEX Corp. 2,014,200
------------
5,919,200
------------
TOTAL COMMON STOCKS
(COST $82,143,516) 107,867,562
------------
PRINCIPAL COMMERCIAL PAPER
AMOUNT (10.9% OF NET ASSETS)
Beneficial Corp.
$ 2,020,000 5.83%, due 1/8/96 2,017,710
Carolina Telephone & Telegraph Co.
2,225,000 5.88%, due 1/5/96 2,223,546
Ford Motor Credit Co.
652,000 5.75%, due 1/3/96 652,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY VALUE
<C> <S> <C>
General Electric Capital Corp.
$ 2,210,000 5.80%, due 1/3/96 $2,210,000
Gillette Co.
1,855,000 5.80%, due 1/5/96 1,853,805
Household Finance Corp.
2,000,000 5.90%, due 1/4/96 1,999,017
U S West Communications, Inc.
1,970,000 5.70%, due 1/2/96 1,969,688
------------
TOTAL COMMERCIAL PAPER
(COST $12,925,766) 12,925,766
------------
TOTAL INVESTMENTS
(COST $95,069,282) 1$20,793,328
------------
------------
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS December 31, 1995
<TABLE>
<S> <C> <C> <C> <C> <C>
A C C O U N T S
1. Aggregate gross unrealized appreciation
(depreciation) as of December 31, 1995,
based on cost for Federal income tax GOVERNMENT TOTAL
purposes, was as follows: LIQUID SECURITIES INCOME RETURN GROWTH
Aggregate gross unrealized appreciation $ -- $2,294,937 $ 435,777 $ 27,208,985 $25,984,836
Aggregate gross unrealized depreciation -- (173,429) (464,799) (526,737) (260,790)
-------------- -------------- -------------- -------------- --------------
Net unrealized appreciation
(depreciation) $ -- $2,121,508 $ (29,022) $ 26,682,248 $25,724,046
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
2. The aggregate cost of investments for
Federal income tax purposes was: $75,707,513 $46,839,748 $32,577,590 $192,516,346 $95,069,282
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
3. Purchases and sales of securities
(excluding short-term securities) for the
year ended December 31, 1995 are
summarized as follows:
Purchases $ -- $27,090,969 $23,653,745 $ 88,015,567 $70,697,765
Sales $ -- $41,107,836 $37,629,462 $115,330,077 $61,274,945
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENT OF NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
December 31, 1995
<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 $46,462,748, $31,327,794,
$72,379,402) $ -- $48,584,256 $31,298,772 $ 76,669,774 $ --
Common stocks, at market value
(Cost $70,464,960, $82,143,516) -- -- -- 92,856,836 107,867,562
Short-term securities 75,707,513 377,000 1,249,796 49,671,984 12,925,766
------------ ------------ ------------ ------------- -------------
75,707,513 48,961,256 32,548,568 219,198,594 120,793,328
Cash 12,344 107 13,220 6,632 21,967
Investment income receivable 103,419 1,058,287 654,267 1,390,464 220,695
Receivable from securities sold -- -- -- 104,295 140,291
Receivable from Fund shares sold 112,587 6,461 4,629 67,621 58,292
------------ ------------ ------------ ------------- -------------
Total Assets 75,935,863 50,026,111 33,220,684 220,767,606 121,234,573
------------ ------------ ------------ ------------- -------------
LIABILITIES
Accrued expenses payable 124,293 123,228 34,323 377,614 199,744
Payable for securities purchased -- -- -- 1,640,712 2,200,297
Dividends payable 3,819 -- -- -- --
------------ ------------ ------------ ------------- -------------
Total Liabilities 128,112 123,228 34,323 2,018,326 2,400,041
------------ ------------ ------------ ------------- -------------
NET ASSETS $75,807,751 $49,902,883 $33,186,361 $218,749,280 $118,834,532
------------ ------------ ------------ ------------- -------------
------------ ------------ ------------ ------------- -------------
OUTSTANDING SHARES -- CLASS A 75,807,751 4,644,816 3,478,038 14,108,084 6,619,121
------------ ------------ ------------ ------------- -------------
------------ ------------ ------------ ------------- -------------
OUTSTANDING SHARES -- CLASS B -- 6,904 6,150 41,504 39,640
------------ ------------ ------------ ------------- -------------
------------ ------------ ------------ ------------- -------------
NET ASSET VALUE PER SHARE -- CLASS A $1.00 $10.73 $9.52 $15.46 $17.84
------------ ------------ ------------ ------------- -------------
------------ ------------ ------------ ------------- -------------
NET ASSET VALUE PER SHARE -- CLASS B -- $10.77 $9.56 $15.66 $18.08
------------ ------------ ------------ ------------- -------------
------------ ------------ ------------ ------------- -------------
NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) $75,807,751 $51,220,513 $35,612,380 $191,347,357 $ 92,323,812
Undistributed net investment income -- 32,873 19,045 68,633 11,438
Accumulated undistributed net realized
gain (loss) -- (3,472,011) (2,416,042) 651,042 775,236
Net unrealized appreciation (depreciation) -- 2,121,508 (29,022) 26,682,248 25,724,046
------------ ------------ ------------ ------------- -------------
NET ASSETS $75,807,751 $49,902,883 $33,186,361 $218,749,280 $118,834,532
------------ ------------ ------------ ------------- -------------
------------ ------------ ------------ ------------- -------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
STATEMENT OF OPERATIONS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
For the year ended December 31, 1995
<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 $4,162,889 $4,326,765 $3,327,978 $8,376,038 $ 598,872
Dividends -- -- -- 1,826,407 2,035,451
--------------- --------------- --------------- -------------- --------------
Total Income 4,162,889 4,326,765 3,327,978 10,202,445 2,634,323
--------------- --------------- --------------- -------------- --------------
Expenses:
Investment advisory fees 349,609 342,325 274,057 1,251,666 613,378
Transfer agent fees 216,300 84,800 61,100 354,800 181,400
Distribution fees -- Class A -- -- -- 348,698 176,158
Distribution fees -- Class B -- 75 112 917 742
Registration fees 26,942 24,048 23,316 52,101 45,955
Custodian fees 28,900 24,600 26,900 42,800 35,600
Professional services 16,580 20,660 15,180 59,820 37,710
Shareholder reports 13,000 9,400 7,400 34,850 17,800
Directors' fees 4,383 3,829 3,396 10,303 5,859
Other 18,946 25,140 -- 42,120 18,014
Expense reimbursement from investment
adviser -- -- (137,292) -- --
--------------- --------------- --------------- -------------- --------------
Total Expenses 674,660 534,877 274,169 2,198,075 1,132,616
--------------- --------------- --------------- -------------- --------------
NET INVESTMENT INCOME 3,488,229 3,791,888 3,053,809 8,004,370 1,501,707
--------------- --------------- --------------- -------------- --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 2 (618,861) (717,369) 7,754,106 7,939,891
Net unrealized appreciation on investments -- 6,078,046 2,639,614 26,965,439 20,902,301
--------------- --------------- --------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 2 5,459,185 1,922,245 34,719,545 28,842,192
--------------- --------------- --------------- -------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $3,488,231 $9,251,073 $4,976,054 $42,723,915 $30,343,899
--------------- --------------- --------------- -------------- --------------
--------------- --------------- --------------- -------------- --------------
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
(This page has been left blank intentionally.)
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
For the years ended December 31, 1995
and 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 $ 3,488,229 $ 2,575,968 $ 3,791,888 $ 4,942,102
Net realized gain (loss)
on investments 2 (987) (618,861) (2,822,974)
Net unrealized
appreciation
(depreciation) on
investments -- -- 6,078,046 (5,366,869)
------------- -------------- ------------- -------------
Net increase (decrease) in
net assets resulting from
operations 3,488,231 2,574,981 9,251,073 (3,247,741)
------------- -------------- ------------- -------------
DIVIDENDS TO SHAREHOLDERS
FROM:
Net investment income --
Class A (3,488,229) (2,574,981) (3,790,617) (4,939,034)
Net investment income --
Class B -- -- (376) --
Net realized gain on
investments -- Class A (2) -- -- (56,279)
Net realized gain on
investments -- Class B -- -- -- --
------------- -------------- ------------- -------------
(3,488,231) (2,574,981) (3,790,993) (4,995,313)
------------- -------------- ------------- -------------
FROM CAPITAL SHARE
TRANSACTIONS:
Net proceeds from sale of
shares 184,452,934 177,469,640 3,206,633 7,468,147
Net asset value of shares
issued to shareholders
from reinvestment
of dividends 3,424,659 2,548,202 3,327,217 4,527,905
Cost of shares reacquired (176,015,712) (192,692,366) (22,253,386) (21,186,898)
------------- -------------- ------------- -------------
Increase (decrease) in net
assets derived from
capital share
transactions 11,861,881 (12,674,524) (15,719,536) (9,190,846)
------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN
NET ASSETS 11,861,881 (12,674,524) (10,259,456) (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 $ 75,807,751 $ 63,945,870 $ 49,902,883 $ 60,162,339
------------- -------------- ------------- -------------
------------- -------------- ------------- -------------
Undistributed net investment
income included in net
assets at end of
period -- -- $32,873 $31,978
------------- -------------
------------- -------------
Undistributed net realized
gain (loss) on investments
included in net assets at
end of period -- -- $(3,472,011) $(2,853,150)
------------- -------------
------------- -------------
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<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 $ 3,053,809 $ 3,484,675 $ 8,004,370 $ 7,127,925 $ 1,501,707 $ 1,077,298
Net realized gain (loss)
on investments (717,369) (660,384) 7,754,106 2,872,138 7,939,891 3,074,097
Net unrealized
appreciation
(depreciation) on
investments 2,639,614 (3,054,974) 26,965,439 (14,089,642) 20,902,301 (4,619,868)
------------ ------------- ------------- ------------- ------------ ------------
Net increase (decrease) in
net assets resulting from
operations 4,976,054 (230,683) 42,723,915 (4,089,579) 30,343,899 (468,473)
------------ ------------- ------------- ------------- ------------ ------------
DIVIDENDS TO SHAREHOLDERS
FROM:
Net investment income --
Class A (3,051,490) (3,473,505) (7,977,727) (7,098,435) (1,491,101) (1,076,035)
Net investment income --
Class B (633) -- (2,581) -- (561) --
Net realized gain on
investments -- Class A -- -- (7,615,071) (3,186,699) (7,649,952) (3,254,775)
Net realized gain on
investments -- Class B -- -- (20,687) -- (42,834) --
------------ ------------- ------------- ------------- ------------ ------------
(3,052,123) (3,473,505) (15,616,066) (10,285,134) (9,184,448) (4,330,810)
------------ ------------- ------------- ------------- ------------ ------------
FROM CAPITAL SHARE
TRANSACTIONS:
Net proceeds from sale of
shares 7,223,431 11,501,443 30,319,938 52,357,416 21,362,895 20,893,600
Net asset value of shares
issued to shareholders
from reinvestment
of dividends 2,567,525 3,019,579 15,328,598 10,101,758 9,082,811 4,286,409
Cost of shares reacquired (25,075,490) (12,906,272) (31,911,112) (41,385,584) (11,160,463) (6,485,813)
------------ ------------- ------------- ------------- ------------ ------------
Increase (decrease) in net
assets derived from
capital share
transactions (15,284,534) 1,614,750 13,737,424 21,073,590 19,285,243 18,694,196
------------ ------------- ------------- ------------- ------------ ------------
NET INCREASE (DECREASE) IN
NET ASSETS (13,360,603) (2,089,438) 40,845,273 6,698,877 40,444,694 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 $33,186,361 $ 46,546,964 $218,749,280 $177,904,007 $118,834,532 $78,389,838
------------ ------------- ------------- ------------- ------------ ------------
------------ ------------- ------------- ------------- ------------ ------------
Undistributed net investment
income included in net
assets at end of
period $ 19,045 $ 17,359 $ 68,633 $ 44,571 $ 11,438 $ 1,393
------------ ------------- ------------- ------------- ------------ ------
------------ ------------- ------------- ------------- ------------ ------
Undistributed net realized
gain (loss) on investments
included in net assets at
end of period $(2,416,042) $(1,698,673) $651,042 $532,694 $775,236 $528,131
------------ ------------- ------------- ------------- ------------ ------------
------------ ------------- ------------- ------------- ------------ ------------
</TABLE>
17
<PAGE>
FINANCIAL HIGHLIGHTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
December 31, 1995
Selected data for a share of capital stock outstanding throughout the period:
<TABLE>
<CAPTION>
NET REALIZED DISTRIBUTIONS RATIO OF RATIO OF NET
DIVIDENDS & UNREALIZED FROM NET NET ASSET NET ASSET OPERATING INVESTMENT
YEARS NET FROM NET GAIN (LOSS) REALIZED VALUE AT VALUE AT EXPENSES TO INCOME TO
ENDED INVESTMENT INVESTMENT ON GAIN ON BEGINNING END AVERAGE AVERAGE
DECEMBER 31 INCOME INCOME INVESTMENTS INVESTMENTS OF PERIOD OF PERIOD NET ASSETS NET ASSETS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
LIQUID ACCOUNT
1986 $ .0588 $ (.0588) $ -- $ -- $ 1.00 $ 1.00 1.00 % 5.88 %
1987 .0581 (.0581) -- -- 1.00 1.00 1.00 5.81
1988 .0664 (.0664) -- -- 1.00 1.00 1.04 6.64
1989 .0822 (.0822) -- -- 1.00 1.00 1.06 8.22
1990 .0731 (.0731) -- -- 1.00 1.00 1.06 7.31
1991 .0522 (.0522) -- -- 1.00 1.00 1.01 5.22
1992 .0287 (.0287) -- -- 1.00 1.00 1.02 2.87
1993 .0227 (.0227) -- -- 1.00 1.00 .95 2.27
1994 .0334 (.0334) -- -- 1.00 1.00 .93 3.34
1995 .0499 (.0499) -- -- 1.00 1.00 .96 4.99
GOVERNMENT SECURITIES ACCOUNT -- CLASS A
1986 .92 (.92) .28 (.11) 10.73 10.90 1.27 8.92
1987 .84 (.84) (.52) (.21) 10.90 10.17 1.24 8.12
1988 .84 (.85) (.05) (.05) 10.17 10.06 1.16 8.27
1989 .84 (.84) .52 -- 10.06 10.58 1.19 8.14
1990 .84 (.84) .10 -- 10.58 10.68 1.16 8.07
1991 .85 (.85) .68 -- 10.68 11.36 1.07 7.83
1992 .77 (.77) (.12) (.05) 11.36 11.19 1.01 6.92
1993 .70 (.70) .36 (.64) 11.19 10.91 .93 6.03
1994 .69 (.69) (1.14) (.01) 10.91 9.76 .91 6.71
1995 .72 (.72) .97 -- 9.76 10.73 .98 6.93
INCOME ACCOUNT -- CLASS A
1986 .83 (.83) .57 (.08) 10.55 11.04 1.29 7.69
1987 .76 (.76) (.56) (.51) 11.04 9.97 1.27 7.32
1988 .84 (.85) (.19) -- 9.97 9.77 1.24 8.43
1989 .88 (.88) .02 -- 9.77 9.79 1.27 8.93
1990 .94 (.94) (.35) -- 9.79 9.44 1.24 9.78
1991 .81 (.81) .47 -- 9.44 9.91 1.12 8.44
1992 .79 (.79) (.16) -- 9.91 9.75 .63 8.09
1993 .65 (.65) .11 -- 9.75 9.86 .63 6.56
1994 .68 (.68) (.72) -- 9.86 9.14 .63 7.16
1995 .67 (.66) .37 -- 9.14 9.52 .63 6.97
TOTAL RETURN ACCOUNT -- CLASS A
1986 .31 (.30) .99 (.04) 10.91 11.87 1.26 3.22
1987 .38 (.38) .13 (1.09) 11.87 10.91 1.08 3.15
1988 .53 (.53) .60 -- 10.91 11.51 1.11 4.61
1989 .76 (.76) 1.81 (.63) 11.51 12.69 1.20 5.90
1990 .66 (.66) (.68) (.07) 12.69 11.94 1.24 5.31
1991 .54 (.54) 2.79 (.71) 11.94 14.02 1.20 4.02
1992 .50 (.50) .86 (1.07) 14.02 13.81 1.11 3.61
1993 .48 (.48) 1.70 (.97) 13.81 14.54 1.02 3.40
1994 .55 (.55) (.86) (.24) 14.54 13.44 .96 3.80
1995 .60 (.60) 2.59 (.57) 13.44 15.46 1.17 4.00
GROWTH ACCOUNT -- CLASS A
1986 .24 (.24) 1.11 (.08) 10.94 11.97 1.31 2.21
1987 .22 (.22) (.12) (2.05) 11.97 9.80 1.17 1.71
1988 .20 (.20) 1.20 -- 9.80 11.00 1.23 1.95
1989 .51 (.51) 3.30 (1.25) 11.00 13.05 1.18 3.90
1990 .34 (.34) (1.36) (.07) 13.05 11.62 1.19 2.73
1991 .25 (.25) 4.00 (1.22) 11.62 14.40 1.19 1.74
1992 .26 (.26) 1.44 (1.64) 14.40 14.20 1.12 1.74
1993 .30 (.30) 2.64 (1.70) 14.20 15.14 1.05 1.95
1994 .22 (.22) (.32) (.62) 15.14 14.20 1.02 1.50
1995 .25 (.25) 4.88 (1.24) 14.20 17.84 1.22 1.53
<CAPTION>
NET ASSETS
AT END
YEARS OF PERIOD ANNUAL
ENDED PORTFOLIO (IN TOTAL
DECEMBER 31 TURNOVER THOUSANDS) RETURN(A)
<S> <C> <C> <C>
- --------------
1986 n/a $ 74,111 6.03 %
1987 n/a 68,908 5.97
1988 n/a 73,921 6.82
1989 n/a 87,264 8.53
1990 n/a 84,387 7.53
1991 n/a 69,932 5.31
1992 n/a 67,549 2.89
1993 n/a 76,620 2.30
1994 n/a 63,946 3.40
1995 n/a 75,808 5.11
GOVERNMENT SEC
1986 111.68 22,947 11.66
1987 207.67 24,703 3.33
1988 175.50 35,910 7.99
1989 68.14 41,561 14.10
1990 44.19 47,524 9.44
1991 27.50 55,332 15.03
1992 131.79 67,612 6.07
1993 224.02 77,596 9.56
1994 156.90 60,162 (4.18)
1995 50.64 49,829 17.90
INCOME ACCOUNT
1986 164.13 14,620 13.54
1987 231.39 15,367 2.03
1988 150.04 16,789 6.70
1989 52.95 18,705 9.56
1990 90.20 19,809 6.33
1991 50.44 22,839 14.22
1992 109.47 38,675 6.60
1993 145.94 48,636 7.97
1994 62.88 46,547 (0.42)
1995 57.08 33,127 11.77
TOTAL RETURN A
1986 143.32 35,382 11.88
1987 197.79 44,770 3.92
1988 223.62 54,253 10.40
1989 149.22 65,071 22.61
1990 115.45 66,382 (0.21)
1991 122.40 86,455 28.21
1992 177.85 109,701 9.90
1993 155.16 171,205 15.89
1994 115.01 177,904 (2.11)
1995 55.20 218,099 23.95
GROWTH ACCOUNT
1986 163.15 19,469 12.25
1987 214.32 19,638 (0.29)
1988 246.14 26,285 14.32
1989 169.75 37,323 34.86
1990 143.95 35,202 (7.98)
1991 148.30 40,716 36.91
1992 141.69 45,600 11.99
1993 99.67 64,495 20.91
1994 98.46 78,390 (0.65)
1995 69.69 118,118 36.40
</TABLE>
(a) Annual total returns do not include the effect of sales charges
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS (CONT'D)
<TABLE>
<CAPTION>
NET REALIZED DISTRIBUTIONS RATIO OF RATIO OF NET
DIVIDENDS & UNREALIZED FROM NET NET ASSET NET ASSET OPERATING INVESTMENT
YEARS NET FROM NET GAIN (LOSS) REALIZED VALUE AT VALUE AT EXPENSES TO INCOME TO
ENDED INVESTMENT INVESTMENT ON GAIN ON BEGINNING END AVERAGE AVERAGE
DECEMBER 31 INCOME INCOME INVESTMENTS INVESTMENTS OF PERIOD OF PERIOD NET ASSETS (A) NET ASSETS (A)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES ACCOUNT -- CLASS B
1995 (c) $ .12 $ (.12) $ .32 $ -- $ 10.45 $ 10.77 1.98 % 1.36 %
INCOME ACCOUNT -- CLASS B
1995 (c) .13 (.13) .10 -- 9.46 9.56 1.63 1.43
TOTAL RETURN ACCOUNT -- CLASS B
1995 (c) .07 (.07) .70 (.52) 15.48 15.66 1.92 .73
GROWTH ACCOUNT -- CLASS B
1995 (c) .02 (.02) 1.40 (1.15) 17.83 18.08 1.97 .21
<CAPTION>
NET ASSETS
YEARS AT END ANNUAL
ENDED PORTFOLIO OF PERIOD TOTAL
DECEMBER 31 TURNOVER (IN THOUSANDS) RETURN(B)
<S> <C> <C> <C>
- --------------
1995 50.64 $ 74 4.20 %
INCOME ACCOUNT
1995 57.08 59 2.41
TOTAL RETURN A
1995 55.20 650 4.93
GROWTH ACCOUNT
1995 69.69 717 8.04
</TABLE>
(a) Annualized
(b) Annual total returns do not include the effect of sales charges
(c) For the period from October 1, 1995 (Inception) through December 31, 1995
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS,
INC.
December 31, 1995
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. The Fund offers both Class A and Class B shares.
Class A shares are sold with a front-end sales charge. Class B shares may be
subject to a contingent deferred sales charge. 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 per
share, the Board will consider what action, if any, should be initiated to
provide fair valuation. Throughout 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 33,548,333 shares of the five Accounts of the Fund as
follows:
<TABLE>
<CAPTION>
LIQUID GOVERNMENT SECURITIES INCOME TOTAL RETURN
<S> <C> <C> <C>
30,904,449 662,517 239 222
<CAPTION>
LIQUID GROWTH
<S> <C>
30,904,449 1,980,906
</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.
20
<PAGE>
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.
The investment advisory fees, which also cover certain administrative and
management services, amounted to $2,831,035 for all Accounts for the year
ended December 31, 1995. For the year ended December 31, 1995, the Investment
Adviser, serving as principal underwriter for sale of shares of the Accounts,
earned $1,642,321 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.
3. DISTRIBUTION PLANS
Each Account has adopted a distribution plan for both Class A shares (Class A
Plan) and Class B shares (Class B Plan) and, with respect to the Liquid
Account, for its shares (Liquid Account Plan) designed to meet the
requirements of Rule 12b-1 under the Investment Company Act of 1940.
Under the Class A Plan of each Account, each Account may make payments for
personal services and/or the maintenance of shareholder accounts to account
executives of Connecticut Mutual Financial Services, Inc. (CMFS), the
Distributor, and other broker dealer firms with whom CMFS has agreements in
amounts not exceeding 0.25% of the average daily net assets of the Account's
Class A shares for any fiscal year. Effective May 1, 1995, the Total Return
and Growth Accounts commenced accruing fees daily and paying fees monthly to
the Distributor. For the eight months ended December 31, 1995, the Distributor
received $524,856 in fees from these Accounts. The Government Securities and
Income Accounts accrued no fees and paid no amounts pursuant to any Plan
during the year ended December 31, 1995.
Under each Account's Class B Plan, such Account may pay CMFS a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the
Account's Class B shares for its expenditures incurred in servicing and
maintaining shareholder accounts, and may pay CMFS a distribution fee at the
annualized rate of up to 0.75% of the average daily net assets of the
Account's Class B shares for its expenditures incurred in providing services
as distributor. Effective October 1, 1995, the Government Securities, Income,
Total Return and Growth Accounts commenced accruing fees daily and paying fees
monthly to the Distributor. For the three months ended December 31, 1995, the
Distributor received $1,846 in fees from these Accounts.
Under the Liquid Account Plan, the Liquid Account reimburses CMFS for its
actual expenses associated with the sale of shares of the Liquid Account. This
reimbursement may include payments to third parties, such as banks or broker
dealers, that provide shareholder support services or engage in the sale of
shares of the Liquid Account. However, payments to CMFS from the assets of the
Liquid Account cannot exceed 0.10% of the average daily net assets of the
Liquid Account's shares. The Liquid Account accrued no fees and paid no
amounts pursuant to any Plan during the year ended December 31, 1995.
21
<PAGE>
4. 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, if any, are
declared and paid at least annually.
5. CAPITAL STOCK
The authorized capital stock of the Fund at December 31, 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>
CLASS A SHARES FOR THE YEAR ENDED DECEMBER 31, 1995
GOVERNMENT TOTAL
LIQUID SECURITIES INCOME RETURN
<S> <C> <C> <C> <C>
Shares authorized (in millions) 250 200 200 200
Shares sold 184,452,934 304,895 764,273 1,998,083
Shares issued to shareholders from reinvestment
of dividends 3,424,659 324,108 274,100 1,003,774
--------------- --------------- --------------- ---------------
Total issued 187,877,593 629,003 1,038,373 3,001,857
Shares reacquired (176,015,712) (2,147,453) (2,654,709) (2,126,335)
--------------- --------------- --------------- ---------------
Net increase (decrease) 11,861,881 (1,518,450) (1,616,336) 875,522
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
<CAPTION>
GROWTH
<S> <C>
Shares authorized (in millions) 200
Shares sold 1,242,427
Shares issued to shareholders from reinvestment
of dividends 513,302
---------------
Total issued 1,755,729
Shares reacquired (657,052)
---------------
Net increase (decrease) 1,098,677
---------------
---------------
</TABLE>
<TABLE>
<CAPTION>
CLASS B SHARES FOR THE PERIOD FROM OCTOBER 1, 1995
(INCEPTION)
TO DECEMBER 31, 1995
GOVERNMENT TOTAL
SECURITIES INCOME RETURN GROWTH
<S> <C> <C> <C> <C>
Shares authorized (in millions) 50 50 50 50
Shares sold 6,888 6,140 40,033 37,415
Shares issued to shareholders from reinvestment of
dividends 35 10 1,471 2,434
------------- ------------- ------------- -------------
Total issued 6,923 6,150 41,504 39,849
Shares reacquired (19) -- -- (209)
------------- ------------- ------------- -------------
Net increase 6,904 6,150 41,504 39,640
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
6. SUBSEQUENT EVENT
On January 27, 1996, the policyholders of Connecticut Mutual Life Insurance
Company (CML) approved a merger, subject to regulatory approval, of CML into
the Massachusetts Mutual Life Insurance Company (MML). In connection with this
merger, the shareholders of the Fund are being asked to consider and approve a
new investment advisory agreement between the Fund and OppenheimerFunds, Inc.,
an indirect subsidiary of MML.
22
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors of Connecticut Mutual Investment Accounts, Inc.:
We have audited the accompanying statement of net assets, including the
schedule of investments, of Connecticut Mutual Investment Accounts, Inc.
(a Maryland corporation) Liquid, Government Securities, Income, Total
Return, and Growth Accounts as of December 31, 1995, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended, and the
financial highlights for each of the ten years in the period then ended.
These financial statements and financial highlights are the responsibility
of the Accounts' management. Our responsibility is to express an opinion
on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1995, by
correspondence with the custodian bank. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of each of the respective Accounts comprising Connecticut Mutual
Investment Accounts, Inc. as of December 31, 1995, the results of their
operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial
highlights for each of the ten years in the period then ended, in
conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
February 9, 1996
23
<PAGE>
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<PAGE>
CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC.
--------------------------------------
BOARD OF DIRECTORS AND OFFICERS
DIRECTORS
RICHARD H. AYERS, Director
Chairman and Chief Executive Officer
The Stanley Works
DAVID E. A. CARSON, Director
President, Chairman and
Chief Executive Officer
People's Bank
RICHARD W. GREENE, Director
Executive Vice President and Treasurer
University of Rochester
BEVERLY L. HAMILTON, Director
President
ARCO Investment Management Company
DONALD H. POND, JR., President and Director
Retired Executive Vice President
Connecticut Mutual Life Insurance Company
DAVID E. SAMS, JR., Director
President and Chief Executive Officer
Connecticut Mutual Life Insurance Company
OFFICERS
DONALD H. POND, JR., President and Director
Retired Executive Vice President
Connecticut Mutual Life Insurance Company
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.
