MML SERIES INVESTMENT FUND, N-30D, 2000-02-24

MML SERIES INVESTMENT FUND
N-30D, 2000-02-24

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MML Series Investment Fund

Table of Contents

		Page
To Our Shareholders		2-11

Statement of Assets and Liabilities as of December 31, 1999		12

MML Equity Fund
MML Money Market Fund
MML Managed Bond Fund
MML Blend Fund

Statement of Operations For the Year Ended December 31, 1999		13

MML Equity Fund
MML Money Market Fund
MML Managed Bond Fund
MML Blend Fund

Statement of Changes in Net Assets For the Years Ended December 31, 1999 and 1998		14

MML Equity Fund
MML Money Market Fund
MML Managed Bond Fund
MML Blend Fund

Financial Highlights

MML Equity Fund		15
MML Money Market Fund		16
MML Managed Bond Fund		17
MML Blend Fund		18

Schedule of Investments as of December 31, 1999

MML Equity Fund		19-20
MML Money Market Fund		21-22
MML Managed Bond Fund		23-25
MML Blend Fund		26-31

Notes to Financial Statements		32-36

Report of Independent Accountants		37

MML Series Investment Fund – Letter to Shareholders

To Our Shareholders

[PHOTO]

“The advances in the market indices were primarily fueled by a narrow group of technology stocks, while the majority of stocks did not perform nearly as well.”

February 1, 2000

MassMutual Consolidates Investment Expertise

Before reviewing the year just ended, I would like to pass along some exciting news about MassMutual. During the past year, we recently formed the Financial Services Group (“FSG”) which took responsibility for managing and administering the MML Series Investment Fund (the “Funds ”). FSG has resulted in the integration of MassMutual’s asset accumulation and retirement products—allowing us to leverage our investment and service expertise and resources to clients of our MassMutual Retirement Services, MassMutual Annuities, MassMutual Variable Life and Institutional Life Insurance businesses.

As part of our responsibility for managing the Funds, we have elected new officers of the Funds who come from our various business units. They not only have investment experience, but also bring to the Funds a comprehensive understanding of the business products through which we market the Funds. I have recently been elected as President and Trustee of the Funds.

We have also broadened our line up of investment managers for the Funds. We believe this will give us the best opportunity to provide investors with the widest choice from among the highest regarded and diverse investment managers across all asset classes. We endeavor to retain investment managers that provide top-notch portfolio management, and conduct extensive due diligence before we select those managers. Then we use an independent consulting firm to assist us in monitoring each manager and the Funds they manage.

In that regard, we also take pleasure in announcing that MassMutual has recently consolidated all its portfolio management operations into its subsidiary, David L. Babson and Company Incorporated. The new entity, which will continue to do business under the David L. Babson name, has assets under management of approximately $70 billion. Stu Reese, the Funds’ former president, has been named Chief Executive Officer of David L. Babson. Mr. Reese, who remains MassMutual’s Chief Investment Officer, will remain as Chairman of the Board of Trustees. In connection with that reorganization, MassMutual has retained David L. Babson as investment sub-adviser to the MML Money Market, MML Managed Bond and MML Blend Funds. We want to emphasize that the same portfolio managers will continue to manage those Funds and there will be no change in the level of services, nor has there been an increase in the management fees charged. David L. Babson will continue to serve as manager for the MML Equity and MML Small Cap Value Equity Funds.

With these changes in the management of the Funds, we believe we will be better able to service our existing clients by offering a full range of financial products to both individual and institutional investors. Stu and I look forward to continuing MassMutual’s tradition of excellent service to our clients and encourage you to contact your service representative or us if you have any questions about our new organizational changes.

Another Banner Year for the U.S. Economy

Nineteen ninety-nine will be remembered as a year that came in like a lamb and went out like a lion, at least in terms of expectations for the U.S. economy. At the beginning of the year, forecasts for 1999 were cautious in the wake of 1998’s credit crunch. Growth, however, continued apace, with real GDP for 1999 estimated to have increased by roughly 4.0%, a truly impressive achievement coming so late in this durable economic expansion that began in the summer of 1991. Equally impressive was the fact that, despite sharply higher energy prices, inflation remained subdued, as evidenced by a CPI that averaged around 2.5% during the year.

(Continued)

The U.S. dollar held its own against the Japanese yen while gaining substantially against the euro, briefly trading at parity with the latter. A strong dollar helped attract investment capital to U.S. stock and bond markets even as it exacerbated the nation’s trade deficit. On the fiscal side, the United States recorded its second consecutive budget surplus in fiscal year 1999, with another surplus forecast for the current fiscal year ending in October, 2000. Clearly, 1999 was another year in which the economy was fundamentally in great shape.

Interest Rates Continue Upward Trend

Along with stronger-than-expected growth in the economy, another important theme for 1999 was rising interest rates. The Federal Reserve Board waited until mid-year, when evidence of robust economic growth was undeniable, to implement the first rate hike of the year. Other increases followed in August and November, and the closely watched federal funds rate ended the year at 5.50%, 75 basis points higher than where it began. With the three increases, the Fed reversed the three cuts made in the fall of 1998, taking rates back to their pre-crisis levels, which were still toward the low end of their recent historical range.

As concerns grew during the year about an overheating economy and a possible return of inflation, intermediate and long-term interest rates also rose. The 30-year Treasury bond, for example, climbed almost 140 basis points to finish the year at 6.48%, while securities in the two to ten year range saw even steeper rises. Rising rates and a flatter yield curve made it a difficult year for fixed-income investors, with most high-quality bond managers seeing negative returns for the year. In general, spread product —fixed-income investments offering a yield premium to Treasuries —performed better than Treasuries. Spreads began the year at relatively wide levels and subsequently narrowed, partially offsetting the effects of higher rates. Investments in high-yield or emerging-market securities, which normally carry the widest spreads because of their higher risk, provided the strongest performance, typically generating positive single-digit returns. In addition, investments at the short end of the yield curve managed low single-digit returns since they were less affected by climbing rates.

Technology Stocks Shine

U.S. stocks kept investors guessing in the first half of the year, as responsibility for market leadership shifted from growth stocks in the first quarter to cyclicals and value shares in the second. In the second half, however, interest faded in virtually everything but technology. Particularly in the fourth quarter, investors threw caution to the wind and piled into their favorites—especially Internet stocks —seemingly without regard to earnings prospects, driving the technology-heavy NASDAQ Composite Index to an astonishing gain of 85.6% for the year. Interest was spread among large-cap favorites and small-cap newcomers. The IPO market sizzled, with many stocks seeing huge gains in their first few days of trading.

Other popular benchmarks, which have become increasingly technology-sensitive in the past few years, posted returns that were modest by comparison but still impressive, and all of them finished at or near their all-time highs. The venerable Dow Jones Industrial Average gained 25.2%, while the Standard & Poor’s 500 Index notched a return of 21.04%. That made it an unprecedented five straight years of returns in excess of 20% for the S&P 500. International stocks also did well in 1999, as many overseas economies experienced stronger growth after a period of lackluster performance, or, in the case of Japan, negative growth. The Y2K phenomenon, much discussed throughout the year, appeared to have minimal effects on worldwide equity and debt markets as the year wound down.

Of considerable concern to many investors, however, was the narrowness of the stock market rally. The lack of breadth was evident in the fact that over 70% of stocks listed on the New York Stock Exchange had negative returns for the year, while over 50% of NASDAQ stocks lost value in 1999. In this environment, value-oriented funds struggled because their investment style, which emphasizes growth at a reasonable price, prevented them from owning the richly valued market leaders.

(Continued)

Looking Ahead

Interest rates should continue to be a prime concern for investors in the coming months. Despite three increases by the Fed in 1999, consensus estimates favor at least one more hike in the first quarter. More than likely, though, we are close to seeing some kind of temporary plateau in interest rates. For one thing, the economy is already showing signs of slowing. Another consideration is that changes in interest rates are typically not fully reflected in the economy until a number of months after they are made. With three increases in the last seven months of 1999, we can expect the Fed to become increasingly cautious over the short term about further rate hikes. Finally, since 2000 is a presidential election year, we look for the Fed to keep short-term rates relatively stable in the second half of the year. In summary, we expect 2000 to offer a reasonably positive backdrop for U.S. investment markets, especially the latter half of the year, when we are likely to see a modestly slowing but still healthy economy and more stable interest rates.

We would not be surprised to see European economic growth surpass that of the United States in the new year. As growth accelerates in Europe, interest rates should rise, drawing greater flows of investment capital and boosting the value of the euro, which is already trading at very oversold levels. Thus, we look for European investments, especially equities, to offer attractive opportunities in 2000.

The markets of 1999 have once again demonstrated the importance of diversification. Large-cap and small-cap, growth and value, domestic and international stocks all have their periods of dominance, but these periods are difficult to predict in advance. A properly diversified investment plan will include elements from all of those categories and, history suggests, achieve better returns with less risk in the long run.

/s/ John V. Murphy

John V. Murphy

President

MML Series Investment Fund

MML Equity Fund

What are the investment objectives and policies for the MML Equity Fund?

The objectives and policies of the Fund are to:

Ÿ	achieve high total returns over the long term while minimizing risk

Ÿ	invest in a diversified portfolio of equity securities of larger, well-established companies (generally companies with market capitalization over $2.0 billion)

Ÿ	utilize a value-oriented strategy in making investment decisions

Ÿ	utilize Fundamental analysis to identify companies which

—are of high investment quality

—offer above-average dividend growth potential

—are attractively valued in the marketplace

How did the Fund perform during 1999?

For the 12 months ended December 31, 1999, the Fund’s shares had a return of -3.82%, well behind the 21.04% return of the Standard & Poor ’s 500 Index, a market capitalization-weighted, unmanaged index of 500 common stocks. The Fund also lagged the 6.59% return of the average large-cap value Fund monitored by Morningstar, Inc. The fund’s return reflects changes in the net asset value per share without the deduction of any insurance product charges. The inclusion of these charges would have reduced the performance shown here.

Why did the Fund trail the indexes by such wide margins?

Nineteen ninety-nine turned out to be a dismal year for value investors. The first and second quarters of the year were markedly different, with growth stocks taking center stage in the first quarter and value stocks coming to the fore in the second. In the second half of the year, growth stocks returned to prominence with a vengeance. If anything, the market advance grew more narrow than it had been early in the year.

Particularly in the fourth quarter, there were basically two markets: technology stocks and everything else. The higher a tech stock’s price-to-earnings ratio, the better investors seemed to like it, almost regardless of earnings prospects. The S&P 500, which has gradually evolved into a growth-oriented, technology-sensitive index with the addition of stocks like Qualcomm, concentration of stocks such as Microsoft, Intel and Cisco Systems, America Online, and Yahoo!, reflected the success of those stocks. Since we concentrate on equities that appear undervalued, most of the best-performing technology stocks were too pricey for the Fund. Above-average dividend yield, another factor we look for, was also spurned by investors, as stocks with the lowest yields far outpaced those with higher yields.

Furthermore, many high-quality, non-technology stocks were kept on the defensive by rising interest rates. As the year progressed, it became clear that economic activity would be much stronger than expected, with Gross Domestic Product and corporate earnings advancing at roughly twice the rate anticipated early in 1999. The Federal Reserve Board, in an effort to keep inflation in check, raised short-term interest rates in June, August, and November. While these rate hikes did little to derail the technology juggernaut, stocks in most other sectors stalled or went lower.

Finally, the Fund’s performance suffered because a number of stocks with formerly reliable earnings growth had disappointing results during the year. Conversely, we eliminated or reduced positions in a number of stocks with formerly reliable earnings growth that had disappointing results during the year. This list included Archer Daniels Midland, Albertson’s, Raytheon, Xerox, and Becton Dickinson.

Were there any changes in your management style?

This is a value fund, and we are not going to change that. However, we have been working to improve the relative earnings growth profile of the portfolio without distorting its overall value characteristics. In that regard, we added several reasonably valued new holdings with projected earnings growth in the 14%-16% range. These included United Parcel Service, Avery-Dennison, and Illinois Tool Works.

What is your outlook?

It is important to remember, especially in difficult times like these, that advances in stock prices are ultimately tied to rising earnings. Another important concept for investors is “reversion to the mean. ” Simply put, it means that when the investment environment shifts too far from what is normal or average, it tends to revert or return to a more average state of affairs.

MML Equity Fund (Continued)

How does this apply to the current situation? Right now the investment environment is excessively skewed in favor of growth-oriented technology stocks to the exclusion of virtually everything else. This distortion exists despite the fact that many value stocks have solid earnings prospects. It exists despite the fact that, while interest rates have risen sharply in the past year, their rise is likely to slow in 2000, creating a more hospitable environment for many non-technology stocks.

When earnings considerations and investor psychology diverge, earnings generally prevail in the long run. Reversion to the mean will eventually occur, and when it does, value stocks will have their day. We therefore view the current market environment as an important opportunity for value investors and have positioned the Fund accordingly.

Growth of a $10,000 Investment

Hypothetical Investments in MML Equity Fund and the Standard & Poor’s 500 Composite Index

MML Series Investment Fund

Total Return

	One Year	Five Year	Ten Year
	12/31/98 - 12/31/99	12/31/94 - 12/31/99	12/31/89 - 12/31/99

MML Equity Fund	-3.82%	17.78%	13.56%


Standard & Poor’s 500 Composite Index	21.04%	28.56%	18.21%

GROWTH OF A $10,000 INVESTMENT FOR THE PAST TEN YEARS

[CHART]

                                                          Standard & Poor's
                                  MML Equity Fund         500 Composite Index

1/1/90                               10,000                    10,000
12/31/90                              9,949                     9,688
12/31/91                             12,492                    12,639
12/31/92                             13,801                    13,603
12/31/93                             15,115                    14,973
12/31/94                             15,735                    15,169
12/31/95                             20,633                    20,870
12/31/96                             24,811                    25,661
12/31/97                             31,905                    34,223
12/31/98                             37,073                    44,003
12/31/99                             35,657                    53,262

Past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Investors should note that the Fund is a professionally managed mutual fund, while the Standard & Poor’s 500 Composite Index is unmanaged and does not incur expenses, and cannot be purchased directly by investors.

MML Money Market Fund

What are the investment objectives and policies for the MML Money Market Fund?

The objectives and policies of the Fund are to:

Ÿ	maximize current income to the extent consistent with liquidity and the preservation of capital

Ÿ invest in a diversified portfolio of money market instruments

Ÿ invest in high quality debt instruments with remaining maturity not to exceed 397 days

How did the Fund perform during 1999?

The Fund’s shares had a net return of 4.78%, slightly better than the 4.74% return of the Lipper Taxable Money Market Average. The Fund ’s 7-day yield was 5.36%. This yield quotation more closely reflects the current earnings of the money market fund than the total return quotation. The fund’s return reflects changes in the net asset value per share without the deduction of any insurance product charges. The inclusion of these charges would have reduced the performance shown here.

What was the investment environment during the period?

Higher short-term interest rates represented the major challenge in the investment environment during the period. The year began with modest expectations for economic growth and predictions of stable and possibly even lower interest rates. That was not to be, however.

During the first half, analysts were forced to roughly double their estimates for growth in Gross Domestic Product and corporate earnings. The Federal Reserve Board, fearing a return of inflation, raised short-term rates on June 30 but gave fixed-income investors something to cheer about by returning to a neutral bias regarding future actions.

MML Money Market Fund (Continued)

The tightening trend in rates evident at mid-year continued throughout the second half. Reacting to continued strong economic growth as well as evidence of speculative excess in the stock market, the Federal Reserve Board followed its June rate increase with one in August and another in November. These three rate hikes effectively offset the three reductions engineered by the Fed in the fall of 1998, when it was responding to crisis conditions in the debt and equity markets brought on by the Russian debt default and the near-failure of a prominent hedge fund.

How did you manage the Fund during this period?

The Fund maintained its strong emphasis on high-quality commercial paper providing a yield advantage to Treasury securities of comparable maturity. Despite mergers and acquisitions during the period that resulted in the loss of numerous desirable holdings, our in-depth credit research enabled us to uncover many attractive opportunities. As before, the Fund limited its investments to Tier 1 securities, which have received the highest rating from at least two of the nationally recognized rating agencies.

We typically kept the average life of the Fund’s holdings in a range from 50 to 60 days, which, as is our customary policy, closely mirrored that of our benchmark, the IBC/Donohue Universe. Occasionally—for example, when we thought a Fed tightening move was imminent—we tried to shorten our average duration slightly. Conversely, we sometimes went a little longer when it seemed that upward pressure on rates was ebbing.

What is your outlook?

We are at an interesting juncture. Should this happen, the Fed might well step back for a while and watch to see how its recent actions affect the economy. Typically, changes in interest rates take at least six to nine months to be fully reflected in economic activity. A slight slowing in the economy, if it should occur, would signal to the Fed that its objectives had been achieved and would likely result in a stable rate environment for at least the rest of the first half and possibly the remainder of the year. That would be good for the Fund.

On the other hand, continued strong economic growth and an overly exuberant stock market would undoubtedly bring a series of rate increases. While we cannot control what the Fed does, we can insure that the Fund continues to receive the benefit of MassMutual’s outstanding research and credit analysis capabilities. That is where we will direct our efforts.

Growth of a $10,000 Investment

Hypothetical Investments in MML Money Market Fund and the Lipper Taxable Money Market Fund Average

MML Series Investment Fund

Total Return

	One Year	Five Year	Ten Year
	12/31/98 - 12/31/99	12/31/94 - 12/31/99	12/31/89 - 12/31/99

MML Money Market Fund	4.78%	5.14%	4.98%


Lipper Taxable Money Market Fund Average	4.74%	5.10%	4.91%

GROWTH OF A $10,000 INVESTMENT FOR THE PAST TEN YEARS

[GRAPH]

                                        MML Money            Lipper Taxable Money
                                       Market Fund           Market Fund Average

        1/1/90                         10,000                    10,000
        12/31/90                       10,812                    18,821
        12/31/91                       11,462                    11,435
        12/31/92                       11,861                    11,811
        12/31/93                       12,187                    12,118
        12/31/94                       12,655                    12,560
        12/31/95                       13,361                    13,235
        12/31/96                       14,030                    13,870
        12/31/97                       14,757                    14,549
        12/31/98                       15,519                    15,257
        12/31/99                       16,260                    15,980

Past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Investors should note that the Fund is a professionally managed mutual fund, while the Lipper Taxable Money Market Fund Average is unmanaged and does not incur expenses, and cannot be purchased directly by investors.

MML Managed Bond Fund

What are the investment objectives and policies for the MML Managed Bond Fund?

The objectives and policies of the Fund are to:

Ÿ	achieve a high total return consistent with prudent investment risk and the preservation of capital

Ÿ	invest primarily in a diversified portfolio of investment grade, fixed income securities

Ÿ	maintain duration in a targeted range from four to seven years

Ÿ	diversify investments by industry, sector, maturity, issuer class, and quality sectors to reduce risk of capital erosion

How did the Fund perform during 1999?

For the 12 months ended December 31, 1999, the Fund’s shares returned -1.83%, slightly better than the -2.15% return of the Lehman Brothers Government/Corporate Bond Index. The fund’s return reflects changes in the net asset value per share without the deduction of any insurance product charges. The inclusion of these charges would have reduced the performance shown here.

What factors influenced the Fund’s performance?

Unfortunately, the trend of rising interest rates evident in the first half of the year continued throughout the second half. In fact, measured by the return on 30-year Treasury bonds, 1999 was one of the worst years for bond returns in modern history. Long bond yields generally react to investors’ expectations for the economy and their concerns about inflation. During the period, the 30-year bond yield climb roughly 140 basis points to 6.48%, was a reflection of unexpected strength in the U.S. economy, which at the outset of 1999 seemed rather fragile. Yields in the five-to-ten year maturities rose even more steeply, flattening the yield curve and further depressing prices.

Rising rates were also evident at the short end of the market. The Federal Reserve Board, reacting to robust growth in Gross Domestic Product and corporate earnings, raised short-term interest rates in June, August, and November, bringing the closely watched federal funds rate up to 5.50%. These three moves effectively offset the three rapid decreases in interest rates engineered by the Fed in the fall of 1999, when world debt and equity markets were reeling from the Russian debt default and the near-collapse of a prominent hedge fund. While the recent increases in rates created a difficult environment for most bond funds, we must remember that interest rates may have been artificially low in the wake of 1999’s crisis. Now that market conditions have returned to normal and the crisis appears to have passed, the Fed’s actions may be seen as merely bringing rates back to their pre-crisis levels.

Because the Fund’s allocation of Treasury securities approximating 25% during the second half of the year, the rise in Treasury yields took its toll on performance. On the other hand, performance was aided by the Fund’s holdings of spread product—those categories of securities offering a yield premium to the Treasury market. This was especially the case with our corporate holdings. Overall, spreads narrowed marginally during the year, partially offsetting the increase in interest rates. Tighter spreads, together with higher yields, enabled our spread product to post better overall returns than its Treasury counterparts.

How was the Fund positioned during the period?

Corporate securities were once again the Fund’s largest sector allocation, comprising approximately 47% of net assets at the end of the year. Treasury securities were the second-largest category, at 26% on December 31. Mortgage-backed securities were next largest, ending the year at 20%.

The Fund ’s overall credit quality remained Aa, while duration, which typically is targeted to remain within plus or minus 5% of the duration of our benchmark, came in at 5.4 on the final day of the period.

What is your outlook?

Historically, our policy has been to overweight spread product relative to our benchmark, and we expect that trend to continue. The general consensus on spreads, at the current time, is that they will continue to narrow. While this would benefit the Fund, we feel the need to be especially selective about new purchases over the short term, if only because we see few, if any, clearly outstanding opportunities available. Other considerations, such as the possible ramifications of further Fed tightening, a correction in equities, or the return of the business cycle, serve to temper our basically positive outlook for 2000.

MML Managed Bond Fund (Continued)

Growth of a $10,000 Investment

Hypothetical Investments in MML Managed Bond Fund and the Lehman Brothers Government/Corporate Index

MML Series Investment Fund

Total Return

	One Year	Five Year	Ten Year
	12/31/98 - 12/31/99	12/31/94 - 12/31/99	12/31/89 - 12/31/99

MML Managed Bond Fund	-1.83%	7.50%	7.68%


Lehman Brothers Government/Corporate Index	-2.15%	7.60%	7.65%

GROWTH OF A $10,000 INVESTMENT FOR THE PAST TEN YEARS

[GRAPH]

                                                            Lehman Brothers
                                     MML Managed          Government/Corporate
                                      Bond Fund                   Index

       1/1/90                          10,000                    10,000
       12/31/90                        10,837                    10,829
       12/31/91                        12,642                    12,576
       12/31/92                        13,567                    13,528
       12/31/93                        15,169                    15,024
       12/31/94                        14,598                    14,497
       12/31/95                        17,393                    17,287
       12/31/96                        17,958                    17,786
       12/31/97                        19,738                    19,521
       12/31/98                        21,344                    21,368
       12/31/99                        20,954                    20,909

Past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Investors should note that the Fund is a professionally managed mutual fund, while the Lehman Brothers Government/Corporate Index is unmanaged and does not incur expenses, and cannot be purchased directly by investors.

MML Blend Fund

What are the investment objectives and policies for the MML Blend Fund?

The objectives and policies of the Fund are to:

Ÿ	achieve a high total rate of return over an extended period of time consistent with the preservation of capital values

Ÿ	invest in a diversified portfolio of equity securities, fixed-income securities and money market instruments

Ÿ	manage the allocation of investments, under normal circumstances, in three sectors with the following ranges:

Money Market segment at least 25% of net assets

Bond segment no more than 50% of net assets

Equity segment no more than 90% of net assets

How did the Fund perform during 1999?

For the 12 months ended December 31, 1999, the Fund’s shares returned -1.24%, trailing the 8.98% gain recorded by the Lipper Balanced Fund Index, an unmanaged index of stock and bond portfolios. The fund’s return reflects changes in the net asset value per share without the deduction of any insurance product charges. The inclusion of these charges would have reduced the performance shown here.

What were the Fund’s allocations among the three asset classes during the period?

The Fund began the period with targets of 53% stocks, 21% bonds, and 26% money market securities. In April, when cyclical stocks began their rally, we marginally increased the stock target allocation to 54%. In October, to take advantage of the attractive pricing that existed with value stocks, we again increased the stock target allocation to the neutral position of 55%. The Fund’s bond allocation was increased once in February and once in June, bringing it up to 30%. These increases were based on our judgment that rising yields made bonds attractive relative to stocks.

What factors affected the Fund’s performance?

Unfortunately, the Fund’s stock and bond components both had weak absolute returns during the period. The stock portion suffered because 1999 turned out be a dismal year for value investors. Except for a brief respite in the spring, when cyclical and value shares enjoyed a strong rally, growth stocks took center stage for most of the year.

MML Blend Fund (Continued)

Particularly in the fourth quarter, there were basically two markets: technology stocks and everything else. The higher a tech stock’s price-to-earnings ratio, the better investors seemed to like it, almost regardless of earnings prospects. Since we concentrate on equities that appear undervalued, most of the best-performing technology stocks were too pricey for the Fund.

Furthermore, many high-quality, non-technology stocks were kept on the defensive by rising interest rates. The Federal Reserve Board, attempting to keep inflation in check in the face of economic growth that was much stronger than expected, raised short-term interest rates in June, August, and November. While these rate hikes did little to derail the technology juggernaut, stocks in most other sectors stalled or went lower.

Strong economic growth and rising rates also limited returns in the bond portion of the Fund. The 30-year bond yield climbed roughly 140 basis points to 6.48%, and yields in the five- to 10-year maturities rose even more steeply, flattening the yield curve and depressing prices. The rise in yields was especially damaging to the Fund’s holdings of Treasury securities, which totaled 30% of the bond portfolio during the second half of the year.

On the other hand, performance relative to our benchmark was aided by the Fund’s holdings of spread product—those categories of securities offering a yield premium to the Treasury market. This was especially the case with our corporate holdings. Overall, spreads narrowed marginally during the year, partially offsetting the increase in interest rates. Tighter spreads, together with higher yields, enabled our spread product to post better overall returns than its Treasury counterparts.

What were some of the changes that occurred in the Fund’s stock holdings?

We have been working to improve the relative earnings growth profile of the portfolio without distorting its overall value characteristics. In that regard, we added several reasonably valued new holdings with projected earnings growth in the 14%-16% range. These included United Parcel Service, Avery-Dennison, and Illinois Tool Works. Conversely, we eliminated or reduced positions in a number of stocks with formerly reliable earnings growth that had disappointing results during the year. This list included Archer Daniels Midland, Albertson’s, Raytheon, Xerox, and Becton Dickinson.

Stock prices are ultimately tied to rising earnings. Right now the investment environment is excessively skewed in favor of growth-oriented technology stocks to the exclusion of virtually everything else. This distortion exists despite the fact that many value stocks have solid earnings prospects. When earnings considerations and investor psychology diverge, earnings generally prevail in the long run. This bodes well for many of the Fund’s holdings. We view the current market environment as an important opportunity for value investors and have positioned the Fund accordingly.

How was the bond portfolio positioned?

Corporate securities were once again the Fund’s largest sector allocation, comprising approximately 45% of total assets in the bond portfolio at the end of the year. Treasury securities were the second-largest category, at 31% on December 31. Mortgage-backed securities were next largest, ending the year at 17%.

The Fund’s overall credit quality remained Aa, while duration, which typically is targeted to remain within plus or minus 5% of the duration of our benchmark, came in at 5.35 on the final day of the period.

MML Blend Fund (Continued)

What is your outlook?

With respect to the Fund’s bond portfolio, our policy has been to overweight spread product relative to our benchmark, and we expect that trend to continue. The general consensus on spreads, at the current time, is that they will continue to narrow. While this would benefit the Fund, we feel the need to be especially selective about new purchases over the short term, if only because we see few, if any, clearly outstanding opportunities available. Other considerations, such as the possible ramifications of further Fed tightening, a correction in equities, or the return of the business cycle, serve to temper our basically positive outlook for 2000.

Growth of a $10,000 Investment

Hypothetical Investments in MML Blend Fund and the corresponding indices

MML Series Investment Fund

Total Return

	One Year	Five Year	Ten Year
	12/31/98 - 12/31/99	12/31/94 - 12/31/99	12/31/89 - 12/31/99

MML Blend Fund	-1.24%	13.75%	11.51%


Lipper Balanced Fund Index	8.98%	16.27%	12.14%

Standard & Poor’s 500 Composite Index	21.04%	28.56%	18.21%

Lehman Brothers Government/Corporate Index	-2.15%	7.60%	7.65%

GROWTH OF A $10,000 INVESTMENT FOR THE PAST TEN YEARS

[CHART]


                                    Lipper       S&P 500       Lehman Bros.
                       MML         Balanced     Composite      Gov't/Corp.
                    Blend Fund       Fund         Index           Index

      1/1/90          10,000        10,000        10,000          10,000
      12/31/90        10,237        10,066         9,688          10,829
      12/31/91        12,694        12,665        12,639          12,576
      12/31/92        13,883        13,584        13,603          13,528
      12/31/93        15,229        15,173        14,973          15,024
      12/31/94        15,606        14,795        15,169          14,497
      12/31/95        19,239        18,434        20,870          17,287
      12/31/96        21,923        20,830        25,661          17,786
      12/31/97        26,502        25,007        34,223          19,521
      12/31/98        30,096        28,850        44,003          21,368
      12/31/99        29,723        31,439        53,262          20,909

	MML Equity Fund	MML Money Market Fund		MML Managed Bond Fund		MML Blend Fund

ASSETS

Investments at value (See Schedule of Investments) (Note 2)

Equities (Identified cost: $1,757,118,246; $907,333,631, respectively)	$ 2,751,561,310	$ -		$ -		$ 1,607,580,952

Bonds (Identified cost: $249,095,267; $678,837,930, respectively)	-	-		239,603,092		650,032,083

Short Term Investments (Identified cost: $83,535,236; $201,679,612; $998,500; $442,098,649, respectively)	83,535,204	201,679,612		998,333		441,945,717

Total investments	2,835,096,514	201,679,612		240,601,425		2,699,558,752


Cash	11,673	1,843		76,885		(16,466	)

Receivable for investment securities sold	4,491,323	-		1,562		3,733,842

Interest and dividends receivable	3,626,974	-		3,194,458		11,490,144


Total assets	2,843,226,484	201,681,455		243,874,330		2,714,766,272


LIABILITIES

Payable for investment securities purchased	6,098,388	-		-		3,057,807

Dividends payable (Note 2)	86,114,676	874,528		3,650,000		72,654,848

Investment management fee payable (Note 3)	2,836,609	222,097		304,401		2,708,558

Accrued liabilities	21,478	14,919		10,367		24,223

Total liabilities	95,071,151	1,111,544		3,964,768		78,445,436


NET ASSETS	$ 2,748,155,333	$ 200,569,911		$ 239,909,562		$ 2,636,320,836


Net assets consist of:

Series shares, (par value $.01 per share) (Note 5)	$ 751,766	$ 2,005,699		$ 206,634		$ 1,121,518

Additional paid-in capital	1,752,901,805	198,562,122		251,132,836		1,963,860,224

Undistributed net investment income (Note 2)	58,730	16,538		49,970		50,552

Accumulated net realized loss on investments (Note 7)	-	(14,448	)	(1,987,536	)	-

Net unrealized appreciation (depreciation) on investments (Note 7)	994,443,032	-		(9,492,342	)	671,288,542

NET ASSETS	$ 2,748,155,333	$ 200,569,911		$ 239,909,562		$ 2,636,320,836


Outstanding series shares	75,176,572	200,569,911		20,663,404		112,151,790


Net asset value per share	$ 36.56	$ 1.00		$ 11.61		$ 23.51

	MML Equity Fund		MML Money Market Fund		MML Managed Bond Fund		MML Blend Fund

Investment income (Note 2)

Dividends	$ 59,479,611		$ -		$ -		$ 34,401,978

Interest	5,470,322		9,653,689		17,066,150		73,016,528

Total income	64,949,933		9,653,689		17,066,150		107,418,506


Expenses

Investment management fee (Note 3)	11,203,491		865,386		1,213,876		10,793,795

Trustees’ fees	23,760		22,729		22,729		26,156

Audit fees	37,674		30,248		37,809		41,314

Other expenses	18,385		13,666		-		20,530

Total expenses	11,283,310		932,029		1,274,414		10,881,795

Net investment income (Note 2)	53,666,623		8,721,660		15,791,736		96,536,711


Net realized and unrealized gain (loss) on investments

Net realized gain (loss) on investments	32,212,209		(2,451	)	(1,987,536	)	49,460,859

Net change in unrealized depreciation on investments	(199,732,667	)	-		(18,606,086	)	(178,772,580	)

Net loss	(167,520,458	)	(2,451	)	(20,593,622	)	(129,311,721	)


Net increase (decrease) in net assets resulting from operations	$ (113,853,835	)	$ 8,719,209		$ (4,801,886	)	$ (32,775,010	)

	1999								1998
	MML Equity Fund		MML Money Market Fund		MML Managed Bond Fund		MML Blend Fund		MML Equity Fund		MML Money Market Fund		MML Managed Bond Fund		MML Blend Fund

From Operations:

Net investment income	$ 53,666,623		$ 8,721,660		$ 15,791,736		$ 96,536,711		$ 54,275,280		$ 7,669,549		$ 13,889,255		$ 95,937,529

Net realized gain (loss) on investments and forward commitments	32,212,209		(2,451	)	(1,987,536	)	49,460,859		94,862,149		(96	)	1,157,167		152,811,311

Net change in unrealized appreciation (depreciation) on investments	(199,732,667	)	-		(18,606,086	)	(178,772,580	)	271,601,536		-		2,666,019		109,417,834


Net increase (decrease) in net assets resulting from operations	(113,853,835	)	8,719,209		(4,801,886	)	(32,775,010	)	420,738,965		7,669,453		17,712,441		358,166,674

Distributions to shareholders from: (Note 2)

Net investment income	(53,615,000	)	(8,719,209	)	(15,861,796	)	(96,568,344	)	(54,285,000	)	(7,669,453	)	(13,769,225	)	(95,855,344	)

Net realized gains	(32,524,676	)	-		-		(49,654,848	)	(94,537,870	)	-		(1,157,166	)	(152,423,440	)


Decrease in net assets from distributions to shareholders	(86,139,676	)	(8,719,209	)	(15,861,796	)	(146,223,192	)	(148,822,870	)	(7,669,453	)	(14,926,391	)	(248,278,784	)

Net increase in capital share transactions (Note 5)	10,041,380		22,136,154		6,464,564		630,128		302,750,092		37,268,372		46,006,732		232,973,529

Total increase (decrease)	(189,952,131	)	22,136,154		(14,199,118	)	(178,368,074	)	574,666,187		37,268,372		48,792,782		342,861,419

NET ASSETS, at beginning of the year	2,938,107,464		178,433,757		254,108,680		2,814,688,910		2,363,441,277		141,165,385		205,315,898		2,471,827,491


NET ASSETS, at end of the year	$ 2,748,155,333		$ 200,569,911		$ 239,909,562		$ 2,636,320,836		$ 2,938,107,464		$ 178,433,757		$ 254,108,680		$ 2,814,688,910


Undistributed net investment income included in net assets at end of the year	$ 58,730		$ 16,538		$ 49,970		$ 50,552		$ 7,107		$ 14,087		$ 120,030		$ 82,185

	MML EQUITY FUND


	Year Ended December 31,
	1999		1998		1997		1996		1995		1994		1993		1992		1991		1990

Net asset value: Beginning of year	$ 39.198		$ 35.443		$ 29.786		$ 25.924		$ 20.520		$ 20.510		$ 19.862		$ 18.735		$ 15.659		$ 16.764


Income from investment operations:

Net investment income	0.713		0.724		0.709		0.703		0.634		0.594		0.524		0.543		0.563		0.636

Net realized and unrealized gain (loss) on investments	(2.210	)	5.016		7.806		4.547		5.754		0.248		1.365		1.420		3.440		(0.722	)

Total income (loss) from investment operations	(1.497	)	5.740		8.515		5.250		6.388		0.842		1.889		1.963		4.003		(0.086	)


Less distributions:

Dividends from net investment income	(0.713	)	(0.724	)	(0.709	)	(0.703	)	(0.634	)	(0.594	)	(0.524	)	(0.543	)	(0.562	)	(0.665	)

Distribution from net realized gains	(0.433	)	(1.261	)	(2.149	)	(0.685	)	(0.350	)	(0.238	)	(0.717	)	(0.288	)	(0.365	)	(0.354	)

Distribution in excess of net realized gains	-		-		-		-		-		-		-		(0.005	)	-		-

Total distributions	(1.146	)	(1.985	)	(2.858	)	(1.388	)	(0.984	)	(0.832	)	(1.241	)	(0.836	)	(0.927	)	(1.019	)


Net asset value: End of year	$ 36.555		$ 39.198		$ 35.443		$ 29.786		$ 25.924		$ 20.520		$ 20.510		$ 19.862		$ 18.735		$ 15.659


Total return**	(3.82%	)	16.20%		28.59%		20.25%		31.13%		4.10%		9.52%		10.48%		25.56%		(0.51%	)

Net assets (in millions):

End of year	$ 2,748.16		$ 2,938.11		$ 2,363.44		$ 1,701.99		$ 1,248.90		$ 820.78		$ 663.09		$ 490.62		$ 355.04		$ 235.45

Ratio of expenses to average net assets	0.37%		0.37%		0.35%		0.38%		0.41%		0.43%		0.44%		0.46%		0.48%		0.49%

Ratio of net investment income to average net assets	1.78%		1.95%		2.03%		2.65%		2.89%		3.04%		3.23%		3.09%		3.43%		4.09%

Portfolio turnover rate	15.89%		14.03%		15.30%		11.42%		11.72%		9.99%		11.28%		9.07%		9.37%		13.50%

	MML MONEY MARKET FUND


	Year Ended December 31,
	1999		1998		1997		1996		1995		1994		1993		1992		1991		1990

Net asset value: Beginning of year	$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000


Income from investment operations:

Net investment income	0.047		0.500		0.051		0.049		0.054		0.038		0.027		0.034		0.059		0.078

Total income from investment operations	0.047		0.500		0.051		0.049		0.054		0.038		0.027		0.034		0.059		0.078


Less distributions:

Dividends from net investment income	(0.047	)	(0.500	)	(0.051	)	(0.049	)	(0.054	)	(0.038	)	(0.027	)	(0.034	)	(0.059	)	(0.078	)

Total distributions	(0.047	)	(0.500	)	(0.051	)	(0.049	)	(0.054	)	(0.038	)	(0.027	)	(0.034	)	(0.059	)	(0.078	)


Net asset value: End of year	$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000		$ 1.000


Total return**	4.78%		5.16%		5.18%		5.01%		5.58%		3.84%		2.75%		3.48%		6.01%		8.12%

Net assets (in millions):

End of year	$ 200.57		$ 178.43		$ 141.17		$ 145.23		$ 108.92		$ 91.79		$ 73.66		$ 84.56		$ 94.41		$ 114.59

Ratio of expenses to average net assets	0.50%		0.49%		0.52%		0.52%		0.54%		0.55%		0.54%		0.53%		0.52%		0.54%

Ratio of net investment income to average net assets	4.68%		5.05%		5.07%		4.92%		5.43%		3.81%		2.71%		3.42%		5.91%		7.80%

	Number of Shares	Market Value (Note 2)


EQUITIES - 100.12%

Aerospace & Defense - 3.20%
Honeywell International, Inc.	749,925	$ 43,261,298
TRW, Inc.	861,100	44,723,381

		87,984,679



Apparel, Textiles & Shoes - 0.87%
V F Corporation	800,000	24,000,000



Automotive & Parts - 1.83%
Delphi Automotive Systems Corporation	1,491,500	23,491,125
Ford Motor Company	500,000	26,718,750

		50,209,875



Banking, Savings & Loans - 6.90%
The Bank of New York Company, Incorporated	1,320,000	52,800,000
Comerica, Inc.	485,250	22,655,109
First Union Corp.	543,776	17,842,650
Fleet Boston Financial Corp.	620,853	21,613,445
Pacific Century Financial Corporation	977,900	18,274,506
Wachovia Corp.	363,200	24,697,600
Wells Fargo & Company	782,000	31,622,125

		189,505,435



Beverages - 0.96%
Brown-Forman Corporation (Class B)	463,000	26,506,750



Broadcasting, Publishing & Printing - 2.24%
McGraw-Hill Companies, Inc.	1,000,000	61,625,000



Chemicals - 3.61%
Air Products & Chemicals, Inc.	700,000	23,493,750
Engelhard Corporation	1,650,000	31,143,750
Rohm & Haas Company	1,095,000	44,552,812

		99,190,312

	Number of Shares	Market Value (Note 2)


Communications - 4.83%
GTE Corporation	946,800	$ 66,808,575
SBC Communications, Inc.	1,352,824	65,950,170

		132,758,745


Computers & Office Equipment - 11.14%
Electronic Data Systems Corporation	900,400	60,270,525
Hewlett-Packard Company	940,000	107,101,250
International Business Machines Corporation	880,000	95,040,000
Pitney Bowes, Inc.	904,000	43,674,500

		306,086,275



Containers - 2.68%
Bemis Company, Inc.	700,300	24,422,962
Crown Cork & Seal Company, Inc.	1,220,700	27,313,162
Temple-Inland, Inc.	330,000	21,759,375

		73,495,499



Cosmetics & Personal Care - 2.55%
Kimberly-Clark Corporation	1,075,000	70,143,750



Electric Utilities - 2.32%
Dominion Resources, Inc.	840,000	32,970,000
Pinnacle West Capital	459,800	14,052,637
Teco Energy, Inc.	904,700	16,793,494

		63,816,131

Electrical Equipment & Electronics - 4.69%
General Electric Company	700,000	108,325,000
Hubbell, Incorporated (Class B)	757,144	20,632,175

		128,957,175



Energy - 10.89%
APACHE Corporation	714,200	26,380,763
BP Amoco plc - Sponsored ADR**	1,402,732	83,199,542
Burlington Resources, Inc.	850,000	28,103,125
Chevron Corporation	350,000	30,318,750
Conoco, Inc. (Class A)	1,018,900	25,217,775

	Number of Shares	Market Value (Note 2)


Energy (Continued)
Exxon Mobil Corporation	726,082	$ 58,494,981
Unocal Corporation	931,000	31,246,688
USX-Marathon Group, Inc.	655,200	16,175,250

		299,136,874

Financial Services - 3.47%
American Express Company	324,800	53,998,000
American General Corporation	492,900	37,398,788
The Goldman Sachs Group, L.P.	41,200	3,880,525

		95,277,313



Foods - 3.45%
Bestfoods	493,000	25,913,313
ConAgra, Inc.	1,781,000	40,183,813
General Mills, Inc.	800,000	28,600,000

		94,697,126

Forest Products & Paper - 2.60%
Westvaco Corporation	873,055	28,483,419
Weyerhaeuser Company	600,000	43,087,500

		71,570,919

Healthcare - 7.56%
Becton, Dickinson & Company	1,388,600	37,145,050
Bristol-Myers Squibb Company	1,281,100	82,230,606
Pharmacia & Upjohn, Inc.	933,800	42,021,000
Schering-Plough Corp.	1,100,000	46,406,250

		207,802,906



Industrial Distribution - 1.06%
W.W. Grainger, Inc.	612,000	29,261,250



Industrial Diversified - 1.77%
Illinois Tool Works, Inc.	317,500	21,451,094
Tyco International Ltd.	700,008	27,212,811

		48,663,905



Insurance - 5.81%
Hartford Financial Services Group, Inc.	563,200	26,681,600

	Number of Shares	Market Value (Note 2)


Insurance (Continued)
Jefferson-Pilot Corporation	355,500	$ 24,262,875
Marsh & McLennan Companies, Inc.	841,500	80,521,031
MBIA, Inc.	536,000	28,307,500

		159,773,006



Machinery & Components - 2.32%
Dover Corporation	650,000	29,493,750
Parker-Hannifin Corporation	668,075	34,280,598

		63,774,348


Miscellaneous - 1.38%
Avery Dennison Corp.	23,800	1,734,425
Minnesota Mining & Manufacturing Co.	369,500	36,164,813

		37,899,238



Pharmaceuticals - 1.08%
American Home Products Corporation	750,000	29,578,125



Retail - 3.07%
The May Department Stores Company	814,500	26,267,625
Newell Rubbermaid, Inc.	1,250,800	36,273,200
Sears Roebuck and Co.	719,300	21,893,694

		84,434,519



Retail - Grocery - 2.52%
Albertson’s, Inc.	2,148,066	69,275,129



Tobacco - 2.29%
Fortune Brands, Inc.	1,061,500	35,095,844
UST, Inc.	1,100,500	27,718,844

		62,814,688



Transportation - 3.03%
Burlington Northern Sante Fe Corp.	1,038,600	25,186,050
Galileo International, Inc.	929,000	27,811,938
Norfolk Southern Corporation	1,120,100	22,962,050
United Parcel Service, Inc. (Class B)	106,700	7,362,300

		83,322,338

	Principal Amount	Market Value (Note 2)


TOTAL EQUITIES (Cost $1,757,118,246)		$ 2,751,561,310



SHORT-TERM INVESTMENTS - 3.04%
Commercial Paper - 3.04%
AIG Funding, Inc.
6.41% 01/20/2000	$ 10,000,000	9,966,192
Abbott Laboratories
6.26% 01/13/2000	7,500,000	7,484,345
AT&T Corporation
6.36% 01/14/2000	7,500,000	7,482,769
Bell Atlantic Financial Services
6.52% 01/21/2000	7,500,000	7,472,863
Coca Cola Company
6.04% 02/03/2000	8,074,000	8,029,408
Du Pont (EI) de Nemours
5.36% 1/21/2000	3,598,000	3,587,301
Ford Motor Credit
6.37% 01/13/2000	2,953,000	2,947,082
General Electric Capital Corp.
6.56% 01/12/2000	9,500,000	9,480,955
General Motors Acceptance Corporation
6.42% 01/14/2000	12,000,000	11,972,204
Heinz H.J. Company
6.32% 01/27/2000	6,188,000	6,159,795
Nike, Inc.
6.37% 01/31/2000	9,000,000	8,952,290



TOTAL SHORT-TERM INVESTMENTS
(Cost $83,535,236)		83,535,204

TOTAL INVESTMENTS - 103.16%	2,835,096,514
(Cost $1,840,653,482)***

Other Assets/(Liabilities) - (3.16%)	(86,941,181	)

NET ASSETS - 100%	$2,748,155,333

Notes to Schedule of Investments
**	ADR: American Depository Receipt
***	Aggregate cost for Federal tax purposes (Note 7)

	Principal Amount	Market Value (Note 2)


SHORT-TERM INVESTMENTS - 100.55%

Commercial Paper - 95.83%
Abbott Laboratories
5.77% 01/11/2000	$ 3,160,000	$ 3,154,953
Allied Signal, Inc.
5.77% 02/11/2000	4,530,000	4,500,593
Allied Signal, Inc.
5.87% 02/14/2000	1,485,000	1,474,437
Bell Atlantic Network Funding Corp.
5.82% 01/13/2000	5,880,000	5,868,632
BellSouth Telecommunications, Inc.
5.70% 01/27/2000	1,600,000	1,593,494
BellSouth Telecommunications, Inc.
5.56% 01/28/2000	3,240,000	3,226,684
BellSouth Telecommunications, Inc.
5.83% 02/03/2000	1,065,000	1,059,337
BEMIS Co.
5.39% 01/31/2000	3,930,000	3,912,643
BEMIS Co.
5.84% 02/10/2000	2,485,000	2,469,041
CIT Group Holdings, Inc.
5.92% 01/07/2000	7,190,000	7,182,930
Campbell Soup Company
5.79% 02/01/2000	3,880,000	3,860,755
Campbell Soup Company
5.90% 02/02/2000	3,330,000	3,312,595
Cargill, Inc.
4.96% 02/04/2000	6,135,000	6,106,782
Caterpillar Financial Services
5.76% 02/28/2000	6,770,000	6,707,829
Coca Cola Co.
5.86% 03/21/2000	5,925,000	5,848,370
Cooper Industries, Inc.
6.00% 01/20/2000	3,975,000	3,962,475
Cooper Industries, Inc.
6.13% 02/08/2000	3,700,000	3,676,176
Corning, Inc.
6.08% 01/25/2000	3,880,000	3,864,428
Countrywide Home Loans
5.25% 01/04/2000	4,915,000	4,912,849
Duke Energy Corporation
6.16% 01/06/2000	4,895,000	4,890,819

	Principal Amount	Market Value (Note 2)


Duke Energy Corporation
6.08% 02/17/2000	$ 1,680,000	$ 1,666,730
E.I. Dupont De Nemours
5.74% 04/27/2000	1,110,000	1,089,581
E.I. Dupont De Nemours
5.76% 06/02/2000	1,750,000	1,707,755
E.I. Dupont De Nemours
5.65% 08/28/2000	2,520,000	2,427,096
Ford Motor Credit Co.
5.93% 01/20/2000	390,000	388,786
Ford Motor Credit Co.
5.42% 03/31/2000	685,000	675,890
Fortune Brands, Inc.
5.44% 02/03/2000	1,600,000	1,592,153
GTE Funding, Inc.
5.99% 02/23/2000	3,250,000	3,221,627
GTE Funding, Inc.
5.99% 03/10/2000	2,730,000	2,698,867
General Electric Capital Corp.
5.96% 01/20/2000	2,400,000	2,392,501
General Electric Capital Corp.
4.95% 01/21/2000	3,580,000	3,570,368
General Electric Capital Corp.
5.81% 02/03/2000	800,000	795,783
General Electric Capital Corp.
5.93% 03/22/2000	445,000	439,143
General Mills, Inc.
5.86% 02/23/2000	3,775,000	3,742,655
General Motors Acceptance Corp.
5.88% 02/10/2000	3,000,000	2,980,500
General Motors Acceptance Corp.
5.97% 02/22/2000	3,840,000	3,807,219
Georgia Power Company
5.79% 02/15/2000	4,890,000	4,855,098
Heinz H.J. Company
5.90% 02/07/2000	3,100,000	3,068,661

	Principal Amount	Market Value (Note 2)


Hershey Foods Corporation
5.78% 02/09/2000	$ 4,610,000	$ 4,581,340
Hershey Foods Corporation
5.92% 02/25/2000	3,000,000	2,973,004
IBM Credit Corporation
5.69% 02/16/2000	4,895,000	4,859,661
Jostens, Inc.
5.85% 01/26/2000	7,000,000	6,971,903
Lucent Technologies, Inc.
5.17% 01/31/2000	870,000	866,317
Lucent Technologies, Inc.
5.82% 03/30/2000	4,155,000	4,095,935
Lucent Technologies, Inc.
5.86% 04/28/2000	2,760,000	2,707,801
Minnesota Mining & Manufacturing Co.
5.68% 01/18/2000	4,515,000	4,502,954
Minnesota Mining & Manufacturing Co.
5.98% 02/24/2000	1,485,000	1,471,746
Nestle Capital Corp.
5.60% 09/22/2000	3,650,000	3,502,763
Potomac Electric Power
5.95% 01/24/2000	2,535,000	2,525,391
Potomac Electric Power
5.81% 01/27/2000	5,000,000	4,979,236
Textron, Inc.
5.93% 01/14/2000	4,745,000	4,734,891
Walt Disney Company
5.71% 01/19/2000	6,255,000	6,237,298
Walt Disney Company
5.74% 05/26/2000	1,400,000	1,367,920
Wisconsin Electric Power Co.
6.13% 02/18/2000	5,890,000	5,842,095
Wisconsin Gas Co.
5.95% 01/10/2000	5,000,000	4,992,625
Wisconsin Gas Co.
6.02% 01/12/2000	2,295,000	2,290,807

Total Commercial Paper
(Cost $192,209,922)		192,209,922

	Principal Amount	Market Value (Note 2)


Discount Notes - 4.72%
Federal Home Loan Mortgage Corporation
5.56% 06/02/2000	$ 1,975,000	$ 1,928,868
Federal Home Loan Mortgage Corporation
5.88% 06/15/2000	2,570,000	2,501,234
Federal National Mortgage Association
5.64% 05/18/2000	5,150,000	5,039,588



Total Discount Notes
(Cost $9,469,690)		9,469,690

TOTAL SHORT-TERM INVESTMENTS
(Cost $201,679,612)		201,679,612


TOTAL INVESTMENTS - 100.55%		201,679,612
(Cost $201,679,612)***

Other Assets/(Liabilities) - (0.55%)		(1,109,701	)

NET ASSETS - 100%		$ 200,569,911

Notes to Schedule of Investments

*** Aggregate cost for Federal tax purposes (Note 7)

	Principal Amount	Market Value (Note 2)


BONDS AND NOTES - 99.87%


Asset Backed Securities - 7.06%
California Infrastructure PG&E-1, 1997-1, Class A6
6.320% 09/25/2005	$ 250,000	$ 245,870
California Infrastructure SDG&E-1, 1997-1, Class A5
6.190% 09/25/2005	250,000	244,962
California Infrastructure SCE-1, 1997-1, Class A5
6.280% 09/25/2005	300,000	294,699
Capita Equipment Receivables Trust, 1996-1, Class A4
6.280% 06/15/2000	335,430	335,414
Case Equipment Loan Trust, 1998-A, Class A4
5.830% 02/15/2005	1,500,000	1,478,775
Chase Manhattan Auto Owner Trust, 1998-A, Class A4
5.800% 12/16/2002	1,500,000	1,481,055
Chase Manhattan RV Owner Trust, 1997-A, Class A7
6.140% 10/16/2006	2,000,000	1,989,600
Metlife Capital Equipment Loan Trust, 1997-A, Class A
6.850% 05/20/2008	1,000,000	993,010
Peco Energy Transition Trust 1999-A, Class A6
6.050% 03/01/2009	1,000,000	938,120
Peco Energy Transition Trust 1999-A, Class A7
6.130% 03/01/2009	500,000	460,465
Premier Auto Trust 1998-4,
Class A3 5.690% 06/08/2002	1,500,000	1,486,485
Premier Auto Trust 1998-5,
Class A3 5.070% 07/08/2002	1,000,000	981,960
Railcar Trust No. 1992-1
7.750% 06/01/2004	1,089,700	1,100,161

	Principal Amount	Market Value (Note 2)


Rental Car Finance Series 1999-1 Class A 144A
5.900% 02/25/2007 †	$ 750,000	$ 721,493
Textron Financial Corp. Series 1998, Class A2
5.890% 01/15/2005	1,500,000	1,474,110
Toyota Auto Lease Trust 1998-B, Class A1
5.350% 07/25/2002	1,500,000	1,497,750
Travelers Funding Ltd Series 1A Class A1
6.300% 02/18/2014	1,400,000	1,205,820

Total Asset Backed Securities
(Cost $17,413,153)		16,929,749



Corporate Debt - 46.73%
AMR Corp.
9.000% 08/01/2012	1,000,000	1,027,240
AirTouch Communications, Inc.
7.500% 07/15/2006	1,500,000	1,517,760
Alcan Aluminum Ltd.
6.250% 11/01/2008	800,000	727,600
America West Airlines 1996-1, Class A
6.850% 7/02/2009	1,655,233	1,542,330
American Airlines, Inc.
9.780% 11/26/2011	1,732,567	1,874,014
American General Finance Corp.
5.750% 11/01/2003	1,000,000	945,790
Analog Devices, Inc.
6.625% 03/01/2000	1,000,000	1,000,200
Archer-Daniels Midland Co.
6.750% 12/15/2027	750,000	654,960
Associates Corp. of North America
7.875% 09/30/2001	2,000,000	2,031,700
Atlantic Richfield Co.
7.770% 02/13/2002	3,000,000	3,051,870
BHP Finance (USA) Limited
6.420% 03/01/2026	2,000,000	1,937,520
Barrick Gold Corp.
7.500% 05/01/2007	2,000,000	1,967,880

	Principal Amount	Market Value (Note 2)


Bell Atlantic Financial
Services, Inc. 6.610% 02/04/2000	$ 2,000,000	$ 2,000,640
Boston Scientific Corp.
6.625% 03/15/2005	2,500,000	2,296,375
CIT Group Holdings
5.625% 10/15/2003	1,000,000	944,830
Capitol Records, Inc. 144A
8.375% 08/15/2009 †	2,000,000	1,948,638
Carlisle Companies, Inc.
7.250% 01/15/2007	1,500,000	1,395,435
Celulosa Arauco Constitution
6.950% 09/15/2005	1,000,000	940,850
Champion International Corp.
6.400% 02/15/2026	1,500,000	1,403,265
Columbia Gas System, Inc.
6.610% 11/28/2002	2,000,000	1,950,040
Comcast Cable Comm., Inc.
8.375% 05/01/2007	1,250,000	1,296,963
Commercial Credit Co.
7.750% 03/01/2005	3,000,000	3,056,160
ConAgra, Inc.
7.000% 10/01/2028	1,250,000	1,098,550
Continental Airlines, Inc. Series 1996-B
7.820% 10/15/2013	1,367,125	1,323,034
Continental Airlines, Inc. Series 1996-2B
8.560% 07/02/2014	929,950	941,082
CSX Corp.
7.050% 05/01/2002	1,000,000	996,170
CSX Corp.
7.250% 05/01/2027	2,000,000	1,948,800
Dover Corp.
6.250% 06/01/2008	750,000	675,428
Dover Corp.
6.650% 06/01/2028	750,000	626,588
Dow Capital
7.125% 01/15/2003	4,000,000	3,977,800
Duke Capital Corp.
8.000% 10/01/2019	800,000	805,840

	Principal Amount	Market Value (Note 2)


Emerald CBO 144A
6.544% 05/24/2011 †	$ 1,000,000	$ 992,500
Equifax, Inc.
6.500% 06/15/2003	1,250,000	1,210,062
ERAC USA Finance Co. 144A
6.750% 5/15/2007†	2,000,000	1,853,040
FBG Finance Ltd. 144A
7.875% 06/01/2016 †	1,250,000	1,240,413
Fletcher Challenge Ltd.
6.750% 03/24/2005	500,000	463,815
Fletcher Challenge Ltd.
7.750% 06/20/2006	1,500,000	1,445,520
Ford Motor Credit Company
7.375% 10/28/2009	1,000,000	987,250
General American Transportation Corp.
6.750% 03/01/2006	2,000,000	1,848,520
General Electric Capital Corp.
5.500% 04/15/2002	1,000,000	970,650
General Electric Capital Corp.
8.750% 05/21/2007	1,000,000	1,080,240
General Mills
8.900% 06/15/2006	1,000,000	1,077,540
Heller Financial, Inc.
6.250% 03/01/2001	1,000,000	991,250
Heller Financial, Inc. 144A
7.375% 11/01/2009 †	1,000,000	972,197
Hershey Foods Co.
7.200% 08/15/2027	1,500,000	1,423,680
Household Finance Corp.
6.500% 11/15/2008	1,000,000	926,110
I C I Wilmington
7.050% 09/15/2007	750,000	715,912
IMC Global, Inc.
6.625% 10/15/2001	1,000,000	982,310
IMCERA Group, Inc.
6.000% 10/15/2003	2,000,000	1,854,880
Interpool, Inc
7.350% 08/01/2007	500,000	412,095
Jet Equipment Trust
8.235% 11/01/2012	1,793,812	1,817,491

	Principal Amount	Market Value (Note 2)


Lasmo USA, Inc.
6.750% 12/15/2007	$ 2,000,000	$ 1,883,992
Leucadia National Corp.
7.750% 08/15/2013	2,000,000	1,888,640
Marsh & Mclennan Companies
7.125% 06/15/2009	750,000	725,891
Meritor Automotive Inc
6.800% 02/15/2009	1,000,000	908,920
Millipore Corp.
7.500% 04/01/2007	1,000,000	924,140
Mobil Corp.
8.625% 08/15/2021	2,000,000	2,251,640
Morgan Stanley, Dean Witter
5.625% 01/20/2004	1,300,000	1,224,509
Newmont Mining Corp.
8.625% 04/01/2002	2,000,000	2,014,140
News America, Inc.
7.300% 04/30/2028	1,000,000	891,980
News America Holdings, Inc.
9.250% 02/01/2013	2,000,000	2,176,560
Norfolk Southern Corp.
7.050% 05/01/2037	2,500,000	2,478,225
Pepsi Bottling Holdings, Inc. 144A
5.625% 2/17/2009†	700,000	618,069
Ralston Purina Co.
7.750% 10/01/2015	3,000,000	2,833,590
Raytheon Co.
6.750% 08/15/2007	500,000	466,465
Raytheon Co.
6.750% 03/15/2018	750,000	651,420
Republic Services
7.125% 05/15/2009	1,000,000	877,480
Ryder System, Inc.
6.600% 11/15/2005	750,000	690,187
Scholastic Corp.
7.000% 12/15/2003	1,500,000	1,459,035
Schwab (Charles) Corp.
6.250% 01/23/2003	2,000,000	1,926,260
Sears Roebuck Acceptance Corp.
6.750% 09/15/2005	1,500,000	1,420,110

	Principal Amount	Market Value (Note 2)


Sprint Capital Corp.
6.125% 11/15/2008	$ 750,000	$ 680,010
Sprint Capital Corp.
6.900% 05/01/2019	750,000	682,110
SuperValu, Inc. 144A
7.875% 08/01/2009 †	2,000,000	1,978,930
Thomas & Betts Corp.
8.250% 01/15/2004	1,500,000	1,500,645
Time Warner, Inc. 144A
6.100% 12/30/2001 †	500,000	490,085
Times Mirror Company
7.450% 10/15/2009	1,300,000	1,293,201
U S Airways, Inc.
7.500% 04/15/2008	909,519	832,528
Union Tank Car
6.790% 05/01/2010	2,000,000	1,826,020
United Air Lines, Inc.
10.110% 02/19/2006	353,576	376,152
Valero Energy Corp.
7.375% 03/15/2006	1,000,000	948,736
Vulcan Materials
6.000% 04/01/2009	800,000	716,296
W P P Finance
6.625% 07/15/2005	900,000	834,601
Williams Companies, Inc.
7.625% 07/15/2019	500,000	479,970

Total Corporate Debt
(Cost $116,899,593)		112,121,364


Non-U S Government Agency Obligations - 3.30%
Asset Securitization Corp Commercial Mortgage, 1995-MD-IV
7.100% 08/13/2007	2,329,033	2,305,650
Chase Commercial Mortgage Sec, Inc., 1998-2, Class A1
6.025% 08/18/2007	1,163,608	1,106,637
C S First Boston Mortgage Corp, 1998-C2, Class A1
5.960% 12/15/2007	937,945	891,048
Merrill Lynch Mortgage Inv. ctf, 1998, Class A1
6.310% 11/15/2026	1,502,563	1,454,782

	Principal Amount	Market Value (Note 2)


Salomon Brothers Mtg Secs VII Series 1997-TZH Class B 144A
7.491% 03/25/2022 †	$ 1,250,000	$ 1,226,594
Starwood Commercial Mtg Trust Series 1999-C1A Class B 144A
6.920% 02/03/2009 †	1,000,000	934,000

Total Non-U S Government Agency Obligations
(Cost $8,381,245)		7,918,711



U.S. Government Agency Obligations - 16.95%
Federal Home Loan Mortgage Corporation (FHLMC) - 2.13%
Collateralized Mortgage Obligations - 1.25%
FHLMC Series 1322 Class G
7.500% 02/15/2007	1,008,131	1,013,484
FHLMC Series 1460 Class H
7.000% 05/15/2007	2,000,000	1,993,120

		3,006,604



Pass-Through Securities - 0.88%
FHLMC
6.420% 12/01/2005	2,099,556	2,025,231
FHLMC
9.000% 03/01/2017	80,178	83,593

		2,108,824

Total Federal Home Loan Mortgage Corporation (FHLMC)		5,115,428



Federal National Mortgage Association (FNMA) - 6.48%
Collateralized Mortgage Obligations - 5.68%
FNMA Series 1993-221 Class D
6.000% 12/25/2008	1,000,000	966,250
FNMA Series 1993-134 Class GA
6.500% 02/25/2007	2,000,000	1,980,620
FNMA Series 1993-231 Class M
6.000% 12/25/2008	3,322,000	3,180,815
FNMA Series 1993-186 Class G
6.250% 03/25/2008	3,700,000	3,660,669

	Principal Amount	Market Value (Note 2)


FNMA Series 1996-54 Class C
6.000% 09/25/2008	$ 4,000,000	$ 3,830,000

		13,618,354



Pass-Through Securities - 0.80%
FNMA
6.000% 11/01/2028	1,901,794	1,739,533
FNMA
9.000% 05/01/2009	178,863	185,443

		1,924,976

Total Federal National Mortgage Association (FNMA)		15,543,330



Government National Mortgage Association (GNMA) - 8.34%
Pass-Through Securities - 8.34%
GNMA 8.000%
12/15/2003 - 01/15/2009	4,270,643	4,312,069
GNMA 7.500%
03/15/2017 - 08/15/2029	7,918,089	7,857,642
GNMA 7.000%
09/15/2023 - 09/15/2029	7,382,920	7,138,676
GNMA - ARMS 6.750%
08/20/2025 ††	17,508	17,628
GNMA - ARMS 6.125%
11/20/2025 - 11/20/2027††	663,529	667,990

Total Government National Mortgage Association (GNMA)		19,994,005

Total U.S. Government Agency Obligations (Cost $41,392,074)		40,652,763

	Principal Amount	Market Value (Note 2)


U.S. Treasury Obligations - 25.83%
U.S. Treasury Bonds and Notes - 20.22%
U.S. Treasury Bond
7.500% 11/15/2016	$ 5,225,000	$ 5,589,914
U.S. Treasury Bond
7.125% 02/15/2023	2,000,000	2,082,180
U.S. Treasury Note
7.500% 02/15/2005	2,700,000	2,816,019
U.S. Treasury Note
6.500% 10/15/2006	34,250,000	34,158,895
U.S. Treasury Note
5.500% 05/15/2009	4,150,000	3,866,637

		48,513,645



U.S.Treasury Strips - 5.61%
U.S. Treasury Strip*
0.000% 05/15/2016	41,000,000	13,466,860

Total U.S. Treasury Obligations
(Cost $65,009,202)		61,980,505

TOTAL BONDS AND NOTES
(Cost $249,095,267)		239,603,092



SHORT-TERM INVESTMENTS - 0.42%
Commercial Paper
Enron Corporation
6.010% 01/10/2000	1,000,000	998,333

TOTAL SHORT-TERM INVESTMENTS
(Cost $998,500)		998,333


TOTAL INVESTMENTS - 100.29%		240,601,425
(Cost $250,093,767)***

Other Assets/(Liabilities) - (0.29%)		(691,863	)

NET ASSETS - 100%		$ 239,909,562


	*	Non-income producing security.

	***	Aggregate cost for Federal tax purposes (Note 7)

	†	Securites exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 1999, these securities amounted to a value of $12,975,959 or 5.4% of net assets.

	††	Variable rate coupon, interest rate shown reflects the rate currently in effect.

	Number of Shares	Market Value (Note 2)


EQUITIES - 60.98%

Aerospace & Defense - 1.95%
Honeywell International, Inc.	442,687	$ 25,537,506
TRW, Inc.	496,600	25,792,163

		51,329,669



Apparel, Textiles & Shoes - 0.46%
V F Corporation	405,500	12,165,000



Automotive & Parts - 1.17%
Delphi Automotive Systems Corporation	1,000,000	15,750,000
Ford Motor Company	282,300	15,085,406

		30,835,406



Banking, Savings & Loan - 4.39%
The Bank of New York Company, Incorporated	920,200	36,808,000
Comerica, Incorporated	370,500	17,297,719
Fleet Boston Financial Corp.	302,160	10,518,945
Pacific Century Financial Corporation	690,600	12,905,588
Wachovia Corp.	260,000	17,680,000
Wells Fargo & Company	508,300	20,554,381

		115,764,633



Beverages - 0.83%
Brown-Forman Corporation (Class B)	382,500	21,898,125



Broadcasting, Publishing & Printing - 1.64%
McGraw-Hill Companies, Inc.	700,000	43,137,500



Chemicals - 2.43%
Air Products & Chemicals, Inc.	429,700	14,421,806
Engelhard Corporation	900,200	16,991,275
Rohm & Haas Company	799,300	32,521,519

		63,934,600

	Number of Shares	Market Value (Note 2)


Communications - 2.71%
GTE Corporation	494,400	$ 34,886,100
SBC Communications, Inc.	750,036	36,564,255

		71,450,355



Computers & Office Equipment - 6.60%
Electronic Data Systems Corporation	400,000	26,775,000
Hewlett-Packard Company	529,600	60,341,300
International Business Machine Corporation	542,200	58,557,600
Pitney Bowes, Inc.	585,900	28,306,294

		173,980,194



Containers - 1.47%
Bemis Company, Inc.	407,600	14,215,050
Crown Cork & Seal Company, Inc.	684,100	15,306,738
Temple-Inland, Inc.	140,600	9,270,812

		38,792,600



Cosmetics & Personal Care - 1.52%
Kimberly-Clark Corporation	615,900	40,187,475



Electric Utilities - 1.36%
Dominion Resources, Inc.	388,000	15,229,000
Pinnacle West Capital Corporation	349,800	10,690,762
Teco Energy, Inc.	541,300	10,047,881

		35,967,643



Electrical Equipment & Electronics - 3.09%
General Electric Company	450,000	69,637,500
Hubbell, Incorporated (Class B)	434,480	11,839,581

		81,477,081



Energy - 6.63%
APACHE Corporation	350,000	12,928,125
BP Amoco plc- Sponsored ADR**	800,358	47,471,234
Burlington Resources, Inc.	500,500	16,547,781
Chevron Corporation	200,000	17,325,000
Conoco, Inc. (Class A)	500,000	12,375,000

	Number of Shares	Market Value (Note 2)


Energy (Continued)
Exxon Mobil Corp.	484,099	$ 39,000,226
Unocal Corporation	584,900	19,630,706
USX-Marathon Group, Inc.	387,300	9,561,469

		174,839,541



Financial Services - 2.14%
American Express Company	182,400	30,324,000
American General Corporation	314,300	23,847,512
The Goldman Sachs Group, L.P.	24,400	2,298,175

		56,469,687

Foods - 2.11%
Bestfoods	318,200	16,725,388
ConAgra, Inc.	976,400	22,030,025
General Mills, Inc	469,400	16,781,050

		55,536,463



Forest Products & Paper - 1.43%
Westvaco Corporation	276,412	9,017,942
Weyerhaeuser Company	399,200	28,667,550

		37,685,492



Healthcare - 4.65%
Becton, Dickinson and Company	907,900	24,286,325
Bristol-Myers Squibb Company	825,300	52,973,944
Pharmacia & Upjohn, Inc.	415,200	18,684,000
Schering Plough Corp.	629,400	26,552,812

		122,497,081



Industrial Distribution - 0.76%
W.W. Grainger, Inc.	421,000	20,129,063



Industrial Diversified - 1.05%
Illinois Tool Works, Inc.	181,400	12,255,838
Tyco International Ltd.	399,962	15,548,523

		27,804,361



Insurance - 3.72%
Hartford Financial Services Group, Inc.	366,700	17,372,412

	Number of Shares	Market Value (Note 2)


Insurance (Continued)
Jefferson-Pilot Corporation	264,300	$ 18,038,475
Marsh & McLennan Companies, Inc.	458,300	43,853,581
MBIA, Inc.	356,000	18,801,250

		98,065,718



Machinery & Components - 1.00%
Dover Corporation	579,100	26,276,662



Miscellaneous - 0.92%
Avery Dennison Corp.	13,800	1,005,675
Minnesota Mining & Manufacturing Company	238,100	23,304,038

		24,309,713

Pharmaceuticals - 0.68%
American Home Products Corporation	453,100	17,869,131



Retail - 1.88%
The May Department Stores Company	468,450	15,107,513
Newell Rubbermaid, Inc.	750,000	21,750,000
Sears Roebuck & Co.	417,400	12,704,613

		49,562,126



Retail-Grocery - 1.21%
Albertson’s, Inc.	991,602	31,979,165



Tobacco - 1.32%
Fortune Brands, Inc.	600,000	19,837,500
UST, Inc.	589,400	14,845,512

		34,683,012



Transportation - 1.86%
Burlington Northern Santa Fe Corp.	667,000	16,174,750
Galileo International, Inc.	454,300	13,600,606
Norfolk Southern Corporation	730,200	14,969,100
United Parcel Service, Inc. (Class B)	61,000	4,209,000

		48,953,456

TOTAL EQUITIES
(Cost $907,333,631)		1,607,580,952

	Principal Amount	Market Value (Note 2)


BONDS AND NOTES - 24.66%

Asset Backed Securities - 1.65%
California Infrastructure PG&E, 1997-1, Class A6
6.320% 09/25/2005	$ 600,000	$ 590,088
California Infrastructure SDG&E, 1997-1, Class A5
6.190% 09/25/2005	500,000	489,925
California Infrastructure SCE, 1997-1, Class A5
6.280% 09/25/2005	650,000	638,515
Capital Equipment Receivables Trust, 1996-1, Class A4
6.280% 06/15/2000	670,861	670,827
Case Equipment Loan Trust, 1998-A, Class A4
5.830% 02/15/2005	3,500,000	3,450,475
Caterpillar Financial Services, 1997-B, Class A3
6.160% 09/25/2003	2,340,776	2,334,433
Chase Manhattan RV Owner Trust, 1997-A, Class A7
6.140% 10/16/2006	4,500,000	4,476,600
Chase Manhattan Auto Owner Trust, 1998-A, Class A4
5.800% 12/16/2002	3,750,000	3,702,637
Ford Credit Auto Master Trust, 1996-B, Class A4
6.300% 01/15/2001	2,019,095	2,019,095
Metlife Capital Equipment Loan Trust, 1997-A, Class A
6.850% 05/20/2008	2,500,000	2,482,525
Peco Energy, 1999-A, Class A7
6.130% 03/01/2009	1,300,000	1,197,209
Peco Energy, 1999-A, Class A6
6.050% 03/01/2009	2,450,000	2,298,394
Premier Auto Trust Series, 1998-4, Class A3
5.690% 06/08/2002	4,000,000	3,963,960
Premier Auto Trust Series, 1998-5, Class A3
5.070% 07/08/2002	2,000,000	1,963,920
Railcar Trust, 1992-1, Class A
7.750% 06/01/2004	986,178	995,646

	Principal Amount	Market Value (Note 2)


Rental Car Finance Corp. 1999-1, Class A 144A
5.900% 02/25/2007†	$ 2,400,000	$ 2,308,776
Textron Financial Corp. 1998-A, Class A2
5.890% 01/15/2005	3,500,000	3,439,590
Toyota Auto Lease Trust, 1998-B, Class A1
5.350% 07/25/2002	3,500,000	3,494,750
Travelers Funding Ltd., CBO Series 1A, Class A1
6.300% 02/18/2014	3,400,000	2,928,420

Total Asset Backed Securities
(Cost $44,572,181)		43,445,785



Corporate Debt - 11.02%
AMR Corporation
9.000% 08/01/2012	2,000,000	2,054,480
AT & T Corporation
5.625% 03/15/2004	4,050,000	3,830,045
Airtouch Communications, Inc.
7.500% 07/15/2006	4,000,000	4,047,360
Alcan Aluminum Ltd.
6.250% 11/01/2008	2,500,000	2,273,750
American West Airlines, Inc. Series A
6.850% 07/02/2009	4,019,852	3,745,658
American Airlines, Inc. Passthru Trust 94-A
9.780% 11/26/2011	4,331,418	4,685,035
American General Finance Corp.
5.750% 11/01/2003	2,000,000	1,891,580
Analog Devices
6.625% 03/01/2000	1,500,000	1,500,300
Archer-Daniels Midland Co.
6.750% 12/15/2027	1,650,000	1,440,912
Associates Corp. of North America
6.750% 08/01/2001	4,000,000	3,992,760
Associates Corp. of North America
6.500% 08/15/2002	2,000,000	1,975,540
BHP Finance (USA) Limited
6.420% 03/01/2026	4,500,000	4,359,420
Barrick Gold Corp.
7.500% 05/01/2007	4,250,000	4,181,745

	Principal Amount	Market Value (Note 2)


Corporate Debt (Continued)
Bell Atlantic Financial Services, Inc
6.610% 02/04/2000	$ 1,000,000	$ 1,000,320
Bombardier Capital 144A
6.000% 01/15/2002 †	4,000,000	3,898,704
Boston Scientific Corporation
6.625% 03/15/2005	6,050,000	5,557,228
C I T Group Holdings, Inc.
5.625% 10/15/2003	2,500,000	2,362,075
C I T Group Holdings, Inc.
6.375% 10/01/2002	4,000,000	3,916,720
CSX Corporation
7.050% 05/01/2002	2,000,000	1,992,340
CSX Corporation
7.250% 05/01/2004	250,000	245,928
CSX Corporation
7.250% 05/01/2027	4,500,000	4,384,800
Cable & Wireless Communications plc
6.750% 12/01/2008	5,750,000	5,693,805
Capitol Records, Inc. 144A
8.375% 08/15/2009 †	6,000,000	5,845,914
Carlisle Companies, Inc.
7.250% 01/15/2007	2,760,000	2,567,600
Celulosa Arauco Constitucion
6.950% 09/15/2005	2,500,000	2,352,125
Champion International Corp.
6.400% 02/15/2026	3,500,000	3,274,285
Columbia Gas System, Inc.
6.610% 11/28/2002	3,000,000	2,925,060
Comcast Cable Comm, Inc.
8.375% 05/01/2007	2,500,000	2,593,925
Commercial Credit Co.
7.750% 03/01/2005	2,500,000	2,546,800
ConAgra, Inc.
7.000% 10/01/2028	3,000,000	2,636,520
Continental Airlines, Inc. Series 1996-B
7.820% 10/15/2013	1,822,832	1,764,046
Continental Airlines, Inc. Series 1996-2B
8.560% 07/02/2014	1,627,413	1,646,893
Delta Air Lines, Inc. 92-C
8.540% 01/02/2007	3,811,892	3,887,558
Dover Corp.
6.250% 06/01/2008	2,000,000	1,801,140

	Principal Amount	Market Value (Note 2)



I C I Wilmington
7.050% 09/15/2007	$ 2,500,000	$ 2,386,375
IMC Global, Inc.
6.625% 10/15/2001	2,500,000	2,455,775
Interpool, Inc.
7.350% 08/01/2007	2,000,000	1,648,382
Lasmo USA, Inc.
6.750% 12/15/2007	6,000,000	5,651,976
Leucadia National Corporation
7.750% 08/15/2013	3,000,000	2,832,960
Marsh & Mclennan Companies
7.125% 06/15/2009	2,000,000	1,935,708
Meritor Automotive, Inc.
6.800% 02/15/2009	4,000,000	3,635,680
Midway Airlines 144A
8.140% 01/02/2013 †	2,500,000	2,282,025
Millipore Corporation
7.500% 04/01/2007	4,250,000	3,927,595
Mobil Corp.
8.625% 08/15/2021	4,500,000	5,066,190
Morgan Stanley, Dean Witter
5.625% 01/20/2004	5,000,000	4,709,650
Newmont Mining Corp.
8.625% 04/01/2002	5,000,000	5,035,350
News America, Inc.
7.300% 04/30/2028	3,000,000	2,675,940
News America Holdings, Inc.
9.250% 02/01/2013	4,000,000	4,353,120
Norfolk Southern Corp.
7.050% 05/01/2037	6,000,000	5,947,740
North Finance (Bermuda) Ltd. 144A
7.000% 09/15/2005 †	4,000,000	3,841,440
Pepsi Bottling Holdings, Inc. 144A
5.625% 02/17/2009 †	2,250,000	1,986,651
Ralston Purina Co.
7.750% 10/01/2015	2,000,000	1,889,060
Raytheon Company
6.750% 08/15/2007	2,700,000	2,518,911
Raytheon Company
6.750% 03/15/2018	1,750,000	1,519,980
Republic Services
7.125% 05/15/2009	3,000,000	2,632,440
Ryder System, Inc.
6.600% 11/15/2005	3,500,000	3,220,875