<PAGE>
MAP-EQUITY FUND
To Our Shareholders:
MAP-Equity Fund returned 8.2% and 26.9%, respectively, after expenses, in the
six and twelve month periods ending June 30, 1996. In the same two periods, the
Standard & Poor's 500 Index, a generally accepted index of unmanaged securities,
returned 10.1% and 26.0%, respectively, without investment company related
expenses.
We are pleased to report that the Fund has continued a successful track record
in a prudent, conservative manner. As indicated in this report, the Fund had a
large percentage of its assets in liquid, short-term investments and relatively
low exposure to more volatile technology issues.
Even with this conservative positioning, the Fund's performance surpassed the
S&P 500 Index over the past year. More importantly, the Fund was well-positioned
to weather July's increased market volatility. We expect the Fund to continue to
invest conservatively, which we believe will reward long term investors in the
Fund.
On August 13, 1996, the Board of Directors declared a dividend from net
investment income of $0.21 per share and a capital gain distribution of $0.02
per share payable to shareholders of record on August 14, 1996.
The Board of Directors continues to invite you to mail your comments and
suggestions to them and thanks you for your continued support and confidence in
the Fund.
Sincerely,
EUGENE J. CIARKOWSKI
PRESIDENT
August 15, 1996
<PAGE>
REPORT OF THE INVESTMENT ADVISER
Dear Shareholders:
During the six and twelve month periods ending June 30, 1996, the MAP-Equity
Fund, after expenses, returned 8.2% and 26.9%, respectively. In the same six and
twelve month periods, the Standard & Poor's 500 Index, a generally accepted
index of unmanaged securities, unburdened by investment company related
expenses, returned 10.1% and 26.0%, respectively.
In the paragraphs that follow, we talk about holdings that materially affected
the MAP-Equity Fund's performance during the first six months of 1996.
One positive contributor, STORAGE TECHNOLOGY, was a new purchase. We bought
Storage Tek because we saw changes at the Board level that we believed would
revitalize the company. These changes included easing out both the Chief
Financial Officer and Chief Executive Officer and appointing a new team which
crafted a brilliant agreement to sell substantial quantities of leading edge
disc drives to IBM, a former competitor. Cash has swelled to $490 million and
debt is down to $160 million. Meanwhile, employment is down over 26% and is
still dropping and earnings are surging, and a good part of the investment world
has yet to realize how profound the changes in the company are.
TELEDYNE was another positive contributor during the first half of the year. It
appreciated 41.5% on the back of a plan, which has received government approval,
to merge Teledyne and Allegheny Ludlum. The initial price we paid was only
nominally higher than the per share value of its over funded pension plan.
Allegheny is a particularly well run specialty stainless steel manufacturer
which is likely to bring new economies and markets to Teledyne's prospering
specialty metals operations. Since Allegheny has an under funded pension plan,
there will also be financial synergies. While we have benefited from the
impending merger, we worry that Allegheny's basic product, stainless steel, is
coming into oversupply. As a result, we've reduced our Teledyne holdings.
Another large holding, NATIONAL SERVICE INDUSTRIES, helped performance,
appreciating almost 21% during the first half, nicely outpacing the S&P 500
Index. National Service is an under leveraged, modest growth, multi-industry
company.
COCA-COLA appreciated almost 32% during the first half helped by the company's
forecasted strong revenue growth. The company is also experiencing positive
momentum from its sponsoring of the summer Olympic Games -- held in the
company's hometown of Atlanta.
AMERICAN EXPRESS also helped performance during the first six months of 1996.
The company is in the midst of a program to enhance its competitiveness.
Expenses are being controlled, successful new product offerings are being
launched with increased frequency and new marketing partners are being
assembled. In addition, earnings are growing and the company continues to buy
back its own stock.
PENTAIR's shares appreciated 25% during the first half as the company announced
the purchase of a power tool manufacturer in Germany which will add to net
earnings. Corporate acquisitions during the past twelve months are likely, by
themselves, to boost earnings by 10%. This rate will be measurably enhanced by
the cross selling of current U.S. tool brands into Europe and vice-versa. In
addition, the U.S. power tool division has won a Sears account and has recently
introduced several successful items into the market.
2
<PAGE>
One of our poorer performers was REVCO. It suffered when plans to merge with
Rite Aid were opposed by the Federal Trade Commission. We continue to hold our
position because we think it is the kind of steady grower that could do
relatively well in a slow growth economy.
DIGITAL EQUIPMENT, another holding, suffered when it disclosed its PC business
had slowed materially in March. We had initially bought Digital because it had a
good chance of emerging as the leader in 64 bit computing. This may still be
true but we now believe it will get greater competition from Intel. As a result,
we have recently eliminated our holdings.
Sincerely,
[SIGNATURE]
MICHAEL J. MULLARKEY
Managing Director
MARKSTON INVESTMENT MANAGEMENT
August 15, 1996
3
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
MAP-EQUITY FUND
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments -- Note D:
Common stocks (cost $36,650,712)....... $49,640,577
Preferred stocks (cost $62,121)........ 63,476
Corporate bonds (cost $195,713)........ 263,227
Short-term investments................. 15,120,619
-----------
65,087,899
Cash..................................... 32,899
Receivable for investment securities
sold................................... 283,709
Receivable for Fund shares sold.......... 1,000
Dividends and interest receivable........ 93,958
Other assets............................. 7,454
-----------
Total Assets..................... $65,506,919
-----------
-----------
LIABILITIES
Payable for investment securities
purchased.............................. $ 687,424
Accrued investment advisory fee -- Note
B...................................... 53,921
Accounts payable and accrued expenses.... 46,708
-----------
Total Liabilities................ 788,053
NET ASSETS
Capital stock -- 3,088,535 shares of
$1.00 par value capital stock
outstanding (21,000,000 shares
authorized)............................ 3,088,535
Capital paid-in.......................... 40,835,388
Accumulated undistributed net investment
income................................. 703,977
Accumulated undistributed net realized
gain from security transactions........ 7,032,232
Net unrealized appreciation of
investments............................ 13,058,734
-----------
Total Net Assets................. 64,718,866
-----------
Total Liabilities and Net
Assets......................... $65,506,919
-----------
-----------
Net asset value and redemption price per
share ($64,718,866 DIVIDED BY
3,088,535 shares of capital stock
outstanding)........................... $20.95
-----------
-----------
Computation of maximum public offering
price per share -- 100 DIVIDED BY
95.25 of $20.95 (on sales of $50,000 or
more, the maximum sales charge and,
accordingly, the offering price, is
reduced)............................... $21.99
-----------
-----------
See notes to financial statements.
</TABLE>
STATEMENT OF OPERATIONS
MAP-EQUITY FUND
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<S> <C>
Investment Income:
Dividends.............................. $ 499,080
Interest............................... 372,424
-----------
871,504
Expenses:
Investment advisory fee -- Note B...... 117,134
Custodian.............................. 36,519
Transfer Agent......................... 33,707
Audit.................................. 15,076
Registration and filing fees........... 8,582
Legal.................................. 8,564
Insurance expense...................... 7,162
State taxes............................ 6,135
Printing............................... 4,521
Directors' fees........................ 3,750
Miscellaneous.......................... 2,310
-----------
243,460
-----------
Net Investment Income............ 628,044
-----------
Realized and Unrealized Gain (Loss) on
Investments -- Note D:
Net realized gain from security
transactions......................... 7,436,958
Decrease in unrealized appreciation of
investments.......................... (3,109,541)
-----------
Net Gain on Investments.............. 4,327,417
-----------
Net Increase in Net Assets Resulting
from Operations.................... $ 4,955,461
-----------
-----------
</TABLE>
4
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
MAP-EQUITY FUND
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE 30, YEAR ENDED
1996 DECEMBER 31, 1995
----------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS
Net investment income......................................................... $ 628,044 $ 1,217,484
Net realized gain from security transactions ($7,033,222 and $5,320,112,
respectively, for federal income tax purposes).............................. 7,436,958 4,912,081
Increase (decrease) in unrealized appreciation of investments................. (3,109,541 ) 9,049,889
----------------- -----------------
Net Increase in Net Assets Resulting from Operations........................ 4,955,461 15,179,454
----------------- -----------------
FROM DISTRIBUTIONS TO SHAREHOLDERS -- NOTE E
Dividends from net investment income ($0 and $.43, per share, respectively)... 0 (1,212,694 )
Distributions from net realized gain from security transactions ($0 and $2.07,
per share, respectively).................................................... 0 (5,842,295 )
Distribution required for tax purposes over amounts recorded for financial
reporting purposes ($0 and $.14, per share, respectively)................... 0 (404,726 )
----------------- -----------------
Total Distributions to Shareholders......................................... 0 (7,459,715 )
----------------- -----------------
FROM CAPITAL SHARE TRANSACTIONS -- NOTE C
Net increase (decrease) in net assets from capital share transactions......... (703,876 ) 4,617,372
----------------- -----------------
Net Increase in Net Assets.................................................. 4,251,585 12,337,111
NET ASSETS
Beginning of period........................................................... 60,467,281 48,130,170
----------------- -----------------
End of period (including undistributed net investment income of $703,977 and
$75,933, respectively)...................................................... $ 64,718,866 $ 60,467,281
----------------- -----------------
----------------- -----------------
</TABLE>
See notes to financial statements.
5
<PAGE>
SCHEDULE OF PORTFOLIO INVESTMENTS
MAP-EQUITY FUND
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF MARKET
SHARES VALUE
- ----------- -----------
<C> <S> <C>
COMMON STOCKS (76.70%)
AEROSPACE AND DEFENSE (3.03%)
54,200 Teledyne, Inc.................. $ 1,957,975
-----------
AGRICULTURE (0.44%)
7,600 IMC Global, Inc................ 285,950
-----------
AUTOMOTIVE (1.71%)
41,000 First Brands Corp.............. 1,107,000
-----------
BANKING AND FINANCE (5.20%)
40,500 American Express Co............ 1,807,313
15,445 BanPonce Corp.................. 693,094
13,300 Northern Trust Corp............ 768,075
2,900 Wilmington Trust Corp.......... 93,525
-----------
3,362,007
-----------
BUILDING (1.94%)
7,600 Lone Star Industries, Inc...... 255,550
12,700 Morgan Products Ltd.*.......... 80,963
15,500 Vulcan Materials Co............ 920,313
-----------
1,256,826
-----------
CHEMICALS (0.73%)
15,600 Lubrizol Corp.................. 473,850
-----------
COMPUTERS AND COMPUTING (7.63%)
6,000 Digital Equipment Corp.*....... 270,000
6,500 Electronic Data Systems
Corp......................... 349,375
55,300 National Computer Systems,
Inc.......................... 1,161,300
36,100 Novell, Inc.*.................. 496,375
60,800 Sequent Computer Systems,
Inc.*........................ 813,200
2,300 Silicon Graphics, Inc.*........ 55,200
43,700 Storage Technology Corp.*...... 1,671,525
3,700 Summagraphics Corp.*........... 12,025
8,675 Symantec Corp.*................ 108,438
-----------
4,937,438
-----------
CONGLOMERATES (1.51%)
14,200 Minnesota Mining &
Manufacturing Co............. 979,800
-----------
CONSUMER GOODS AND SERVICES (12.17%)
16,800 American Greetings Corp., Class
A............................ 457,800
13,700 Clorox Co...................... 1,214,162
17,200 Eastman Kodak Co............... 1,337,300
17,188 Gillette Co.................... 1,072,102
2,200 Hasbro, Inc.................... 78,650
8,621 Mattel, Inc.................... 246,776
44,400 National Service Industries,
Inc.......................... 1,737,150
33,100 Time Warner, Inc............... 1,299,175
9,400 Valspar Corp................... 432,400
-----------
7,875,515
-----------
<CAPTION>
NUMBER
OF MARKET
SHARES VALUE
- ----------- -----------
<C> <S> <C>
ELECTRICAL AND ELECTRONICS (0.48%)
13,130 Vishay Intertechnology,
Inc.*........................ $ 310,196
-----------
FOOD AND BEVERAGES (8.70%)
8,000 CPC International, Inc......... 576,000
25,200 Coca-Cola Co................... 1,231,650
12,300 Kellogg Co..................... 900,975
18,500 Luby's Cafeterias, Inc......... 434,750
20,000 McDonald's Corp................ 935,000
24,400 Quaker Oats Co................. 832,650
27,450 Showbiz Pizza Time, Inc.*...... 418,613
25,100 Vicorp Restaurants, Inc.*...... 301,200
-----------
5,630,838
-----------
HEALTHCARE AND MEDICAL (2.92%)
20,700 Caremark International, Inc.... 522,675
46,400 Cooper Companies, Inc.*........ 545,200
12,800 Shared Medical System Corp..... 822,400
-----------
1,890,275
-----------
INDUSTRIAL SERVICES (0.64%)
23,000 Ogden Corp..................... 416,875
-----------
INSURANCE (2.67%)
55,200 Allmerica Property & Casualty
Co........................... 1,490,400
6,000 Argonaut Group, Inc............ 183,000
3,200 USF&G Corp..................... 52,400
-----------
1,725,800
-----------
INVESTMENT COMPANIES (1.49%)
17,600 AIM Strategic Income Fund,
Inc.......................... 170,500
900 Counsellors Tandem Securities
Fund, Inc.*.................. 16,425
90,200 Dean Witter Government Income
Trust........................ 777,975
-----------
964,900
-----------
OIL AND GAS (5.73%)
7,500 Amoco Corp..................... 542,812
774 Apache Corp.................... 25,445
49,997 PanEnergy Corp................. 1,643,651
2,200 Petroleum Helicopters, Inc.,
voting....................... 33,000
5,800 Petroleum Helicopters, Inc.,
non-voting................... 86,275
5,000 Piedmont Natural Gas, Inc...... 115,625
11,200 Quaker State Corp.............. 168,000
7,100 Royal Dutch Petroleum Co....... 1,091,625
-----------
3,706,433
-----------
PAPER AND FOREST PRODUCTS (1.71%)
36,888 Pentair, Inc................... 1,106,640
-----------
</TABLE>
6
<PAGE>
SCHEDULE OF PORTFOLIO INVESTMENTS -- CONTINUED
MAP-EQUITY FUND
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF MARKET
SHARES VALUE
- ----------- -----------
PRINTING AND PUBLISHING (4.26%)
<C> <S> <C>
12,500 Dun & Bradstreet Corp.......... $ 781,250
26,900 Meredith Corp.................. 1,123,075
17,300 Nelson, Thomas Inc............. 231,388
14,200 Times Mirror Co., Series A..... 617,700
-----------
2,753,413
-----------
REAL ESTATE INVESTMENT (2.43%)
23,900 Health Care Property Investors,
Inc.......................... 806,625
53,400 United Dominion Realty Trust,
Inc.......................... 767,625
-----------
1,574,250
-----------
RETAIL TRADE (4.60%)
31,000 Burlington Coat Factory
Warehouse Corp.*............. 325,500
74,518 Genovese Drug Stores, Inc.,
Class A...................... 633,403
70,083 Revco D.S., Inc.*.............. 1,673,232
4,700 Rite Aid Corp.................. 139,825
7,559 Smith's Food & Drug Centers,
Inc., Class B................ 180,471
5,600 Universal International,
Inc.*........................ 25,200
-----------
2,977,631
-----------
TEXTILE & APPAREL (0.07%)
2,500 Oshkosh B'Gosh, Inc., Class
A............................ 45,000
-----------
UTILITIES -- ELECTRIC AND GAS (1.51%)
16,800 Cinergy Corp................... 537,600
6,500 Eastern Utilities Assoc........ 127,562
9,100 Noram Energy Corp.............. 98,963
6,100 Northwest Natural Gas Co....... 213,500
-----------
977,625
-----------
UTILITIES -- TELEPHONE (4.48%)
25,914 Alltel Corp.................... 796,856
22,900 GTE Corp....................... 1,024,775
17,030 Sprint Corp.................... 715,260
15,176 360 Communications Co.*........ 364,224
-----------
2,901,115
-----------
<CAPTION>
NUMBER
OF MARKET
SHARES VALUE
- ----------- -----------
<C> <S> <C>
VOCATIONAL TRAINING (0.65%)
29,700 National Education Corp.*...... $ 423,225
-----------
Total Common Stocks............ 49,640,577
-----------
PREFERRED STOCKS (0.10%)
AEROSPACE AND DEFENSE (0.04%)
1,728 Teledyne, Inc., Series E....... 26,676
-----------
CONSUMER GOODS AND SERVICES
(0.06%)
3,200 Craig Corp., Class A*.......... 36,800
-----------
Total Preferred Stocks......... 63,476
-----------
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
CORPORATE BONDS (0.41%)
INSURANCE (0.18%)
$ 129,000 CII Financial, Inc., 7.50%
conv. sub. deb., due
September 15, 2001........... 117,067
-----------
VOCATIONAL TRAINING (0.23%)
174,000 National Education Corp., 6.50%
conv. sub. deb., due May 15,
2011......................... 146,160
-----------
Total Corporate Bonds.......... 263,227
-----------
SHORT-TERM INVESTMENTS (23.36%)
15,215,000 U.S. Treasury Bills, 4.95% to
5.01%, due July 25 to August
22, 1996..................... 15,120,619
-----------
Total Investments (100.57%).... 65,087,899
-----------
Cash, receivables and other
assets, less payables
(-0.57%)..................... (369,033)
-----------
Net Assets (100.00%)........... $64,718,866
-----------
-----------
</TABLE>
- ---------
* Non-income producing security.
The percentage shown for each investment category is the total value of that
category expressed as a percentage of the total net assets of the Fund.
See notes to financial statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
MAP-EQUITY FUND (UNAUDITED)
NOTE A -- ACCOUNTING POLICIES
MAP-Equity Fund (the "Fund") is a diversified, open-end, management investment
company registered under the Investment Company Act of 1940, as amended.
Significant accounting policies of the Fund are as follows:
INVESTMENTS: Investments, except for short-term investments which are stated at
amortized cost which approximates market value, are valued at closing prices on
national securities exchanges. Securities traded on a national securities
exchange for which there are no sales on the valuation date and securities
traded over-the-counter, are valued at closing bid prices. Investment security
transactions are recorded on the date of purchase or sale. Realized gains and
losses on investment transactions are determined on the basis of identified
cost.
FEDERAL INCOME TAXES: The Fund does not provide for federal income taxes since
it intends to continue to qualify as a "regulated investment company" under the
Internal Revenue Code and to maintain this qualification by distributing each
year substantially all of its taxable net income and net realized capital gains
to its shareholders. Income dividends and capital gain distributions are
determined in accordance with Federal income tax regulations which may differ
from generally accepted accounting principles. Dividends and distributions which
exceed net investment income and net realized capital gains for financial
reporting purposes, but not for tax purposes are reported as distributions in
excess of net investment income and distributions in excess of net realized
capital gains. During the year ended December 31, 1995, the Fund realized
$404,726 of capital losses which for federal income tax purposes are treated as
if they occurred on January 1, 1996.
DIVIDENDS: Dividends receivable on investment securities and dividends payable
to shareholders are recorded on the ex-dividend date.
ESTIMATES: The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
NOTE B -- INVESTMENT ADVISORY AND SERVICE AGREEMENTS
The Fund has an investment advisory and a service agreement with Markston
Investment Management ("Adviser"), a partnership between Markston International,
Inc. ("Markston") and MBL Sales Corporation ("MBL Sales"). Markston is a 49%
general partner of Adviser, and MBL Sales is a 51% general partner. MBL Sales is
a wholly-owned subsidiary of MBLLAC Holding Corporation which is a wholly-owned
subsidiary of the MBL Life Assurance Corporation ("MBL Life"). Under the
investment advisory and service agreements, the Fund pays Adviser a periodic fee
(basic fee) at the annual rate of .50% of the first $200,000,000 of the Fund's
total net assets, .45% of the next $100,000,000 of such value, .40% of the next
$100,000,000 of such value, and .35% of such value in excess of $400,000,000.
The basic fee may be adjusted by an amount determined according to a formula
based on the Fund's performance in relation to the Standard & Poor's 500 Index
("Index"). The formula provides for a weekly increase or decrease in the basic
fee by an amount equal to .05% per annum for each full two percentage points
that the Fund's investment performance, over a 24-month period, is better or
worse than that of the Index. The maximum adjustment is .30%. The fee is
computed and accrued daily and paid quarterly. Based on the formula, for the
24-month period ended June 30, 1996, the Fund's investment performance was 9.55
percentage points worse than that of the Index, resulting in a downward
adjustment to the basic fee of 0.20%.
8
<PAGE>
NOTE B -- INVESTMENT ADVISORY AND SERVICE AGREEMENTS -- CONTINUED
In the event operating expenses of the Fund, exclusive of taxes and interest,
but including the investment advisory fee, exceed 1.5% of the first $30,000,000
of the Fund's average daily net asset value and 1% of the Fund's average daily
net asset value in excess of $30,000,000 for any fiscal year related thereto,
Adviser will reimburse the Fund promptly after the end of the fiscal year for
such excess. No reimbursement was required for the period ended June 30, 1996.
In addition, the Fund has a distribution agreement with First Priority
Investment Corporation ("FPIC"), a wholly-owned subsidiary of MBLLAC Holding
Corporation. During the period ended June 30, 1996, the Fund was advised that
FPIC received $13,649 as distributor of the Fund's shares. From this amount,
FPIC paid commissions to its sales force, as well as the cost of printing
prospectuses, advertising and other sales literature.
The compensation of each disinterested director is paid by the Fund at the rate
of $400 per meeting attended, plus an annual retainer of $900. Aggregate fees
paid during the period to the Fund's disinterested directors amounted to $2,550.
Two of the directors of the Fund and all officers of the Fund are either
officers or employees of MBL Life. The compensation of the directors, officers
and any employees of the Fund affiliated with Adviser or FPIC is paid by the
affiliated entities.
At June 30, 1996, MBL Life owned 1,546,555 Fund shares.
NOTE C -- CAPITAL STOCK
A summary of capital share transactions follows:
<TABLE>
<CAPTION>
Six Months Ended June Year Ended December 31,
30, 1996 1995
------------------------ -------------------------
Shares Amount Shares Amount
--------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Shares sold.................................. 26,402 $ 542,201 47,046 $ 862,252
Shares issued in reinvestment of income
dividends and capital gain distributions... 0 0 378,061 7,251,403
--------- ------------- ---------- -------------
26,402 542,201 425,107 8,113,655
Less shares repurchased...................... (61,425) (1,246,077) (189,308) (3,496,283)
--------- ------------- ---------- -------------
Net increase (decrease) in number of shares
outstanding and net assets resulting from
capital share transactions................. (35,023) $ (703,876) 235,799 $ 4,617,372
--------- ------------- ---------- -------------
--------- ------------- ---------- -------------
</TABLE>
NOTE D -- PURCHASES AND SALES OF INVESTMENTS
Purchases and proceeds from sales of investments during the period ended June
30, 1996, other than short-term investments, aggregated $14,716,337 and
$19,628,562, respectively.
The identified cost of investments owned at June 30, 1996 for federal income tax
purposes was $52,039,803. At June 30, 1996, gross unrealized appreciation of
investments was $13,786,426 and gross unrealized depreciation was $738,330
resulting in net unrealized appreciation of $13,048,096 for federal income tax
purposes.
9
<PAGE>
NOTE E -- DISTRIBUTIONS AND DIVIDENDS
A capital gain distribution and income dividend of $0.02 and $0.21 per share,
respectively, was declared by the Board of Directors on August 13, 1996, and
paid on August 22, 1996 to shareholders of record on August 14, 1996.
------------------------------------------------------------------------------
10
<PAGE>
FINANCIAL HIGHLIGHTS
MAP-EQUITY FUND
(UNAUDITED)
Selected data for each share of capital stock outstanding throughout the periods
indicated:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period........ $ 19.36 $ 16.67 $ 18.13 $ 20.02 $ 19.66 $ 15.84 $ 17.46 $ 14.27 $ 11.65 $ 13.65
Net investment
income........ 0.20 0.43 0.37 0.36 0.42 0.49 0.52 0.36 0.32 0.33
Net realized and
unrealized
gain (loss) on
investments... 1.39 4.90 0.13 1.32 1.65 3.87 (1.41) 3.68 3.13 (0.825)
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Net increase
(decrease) in
net assets
from
operations.... 1.59 5.33 0.50 1.68 2.07 4.36 (0.89) 4.04 3.45 (0.495)
Dividends from
net investment
income........ -- (0.43) (0.37) (0.36) (0.43) (0.49) (0.54) (0.41) (0.31) (0.475)
Distributions
from net
realized gain
from security
transactions... -- (2.07) (1.59) (3.21) (1.28) (0.05) (0.19) (0.44) (0.52) (1.03)
Distribution
required for
tax purposes
over amounts
recorded for
financial
reporting
purposes...... -- (0.14) -- -- -- -- -- -- -- --
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Total
distributions... -- (2.64) (1.96) (3.57) (1.71) (0.54) (0.73) (0.85) (0.83) (1.505)
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Net Asset Value,
End of
Period........ $ 20.95 $ 19.36 $ 16.67 $ 18.13 $ 20.02 $ 19.66 $ 15.84 $ 17.46 $ 14.27 $ 11.65
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Total
Return(1)..... 8.21% 32.50% 2.76% 8.67% 10.53% 27.69% -5.09% 28.18% 29.92% -4.44%
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Ratios/Supplemental
Data:
Net Assets, End
of Period
(thousands)... $ 64,719 $ 60,467 $ 48,130 $ 49,438 $ 48,602 $ 46,228 $ 37,148 $ 35,947 $ 20,752 $ 14,401
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Ratio of
Expenses to
Average Net
Assets........ 0.39% 0.81% 1.07% 1.04% 1.01% 0.85% 1.01% 1.45% 1.52% 1.34%
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Ratio of Net
Investment
Income to
Average Net
Assets........ 1.00% 2.30% 2.03% 1.76% 2.01% 2.69% 3.32% 2.47% 2.57% 2.29%
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Portfolio
Turnover
Rate.......... 30.02% 39.40% 39.31% 19.55% 17.60% 9.12% 6.22% 14.34% 16.85% 20.84%
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
----------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
</TABLE>
- -------------
(1) Total return does not reflect the sales commission (maximum 4.75%) charged
on Fund shares.
See notes to financial statements.
11
<PAGE>
RECORD OF PERFORMANCE (UNAUDITED)
The primary investment objective of MAP-Equity Fund is long-term appreciation of
capital. This can only be achieved over a period of time. The performance of the
Fund should not be judged over the short-term, but should be considered in light
of its investment policies and objectives. Following is a tabular illustration
of the Fund's history since shares of the Fund were first offered for sale on
January 21, 1971. Prior to May 1, 1995, the Fund was known as the Mutual Benefit
Fund.
<TABLE>
<CAPTION>
Per share
----------------------------
<S> <C> <C> <C>
Dividends
Net asset from net Capital
value investment gains
Period ended per share income distributions
- -----------------------------------------------------------------
December 31, 1971 $ 10.81 $ .09 --
December 31, 1972 11.27 .10 $ .02
December 31, 1973 8.98 .08 --
December 31, 1974 6.52 .17 --
December 31, 1975 8.26 .155 --
December 31, 1976 9.70 .18 --
December 31, 1977 9.05 .225 --
December 31, 1978 8.86 .33 --
December 31, 1979 9.46 .43 --
December 31, 1980 10.77 .53 --
December 31, 1981 10.55 .45 --
December 31, 1982 11.60 .775 1.39
December 31, 1983 13.93 .37 .28
December 31, 1984 11.08 .39 2.51
December 31, 1985 12.89 .38 1.01
December 31, 1986 13.65 .315 1.66
December 31, 1987 11.65 .475 1.03
December 31, 1988 14.27 .31 .52
December 31, 1989 17.46 .41 .44
December 31, 1990 15.84 .54 .19
December 31, 1991 19.66 .49 .05
December 31, 1992 20.02 .43 1.28
December 31, 1993 18.13 .36 3.21
December 31, 1994 16.67 .37 1.59
December 31, 1995 19.36 .43 2.21
June 30, 1996 20.95 -- --
- -----------------------------------------------------------------
</TABLE>
PORTFOLIO CHANGES (UNAUDITED)
For the period ended June 30, 1996:
INVESTMENTS ADDED
AIM Strategic Income Fund, Inc.
Amoco Corp.
Burlington Coat Factory Warehouse Corp.
Counsellors Tandem Securities Fund, Inc.
Dean Witter Government Income Trust
Electronic Data Systems Corp.
IMC Global, Inc.
Nelson, Thomas Inc.
Novell, Inc.
Sequent Computer Systems, Inc.
Silicon Graphics, Inc.
Storage Technology Corp.
Symantec Corp.
360 Communications Co.
USF&G Corp.
Vicorp Restaurants, Inc.
Vishay Intertechnology, Inc.
INVESTMENTS ELIMINATED
CCH, Inc. (Classes A and B)
Cray Research, Inc.
Data I/O Corp.
Emerging Tigers Fund, Inc.
Global Government Plus Fund, Inc.
Global Total Return Fund, Inc.
Grossman's, Inc.
Intel Corp.
NextHealth, Inc.
Rhone-Poulenc Rorer, Inc.
Western Gas Resources, Inc.
12
<PAGE>
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<PAGE>
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<PAGE>
MAP-EQUITY FUND
520 Broad Street
Newark, New Jersey 07102-3111
1-800-559-5535
FUND DIRECTORS
Eugene J. Ciarkowski
Horace J. DePodwin
Herbert M. Groce Jr.
Kathleen M. Koerber
Jerome M. Scheckman
INVESTMENT ADVISER
Markston Investment Management
1 North Lexington Avenue
White Plains, New York 10601-1702
DISTRIBUTOR
First Priority Investment Corporation
520 Broad Street
Newark, New Jersey 07102-3111
1-800-559-5535
CUSTODIAN and TRANSFER AGENT
State Street Bank & Trust Co.
P.O. Box 8500
Boston, Massachusetts 02266-8500
1-800-343-0529
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
THIS REPORT HAS BEEN PREPARED FOR THE SHAREHOLDERS OF THE FUND. IT IS NOT
AUTHORIZED FOR OTHER DISTRIBUTION UNLESS PRECEDED OR ACCOMPANIED BY A CURRENT
PROSPECTUS, WHICH INCLUDES INFORMATION CONCERNING THE FUND AND THE SALES
COMMISSION CHARGED ON FUND SHARES.
[LOGO]
SEMI-ANNUAL REPORT
JUNE 30, 1996
-------------------------------
FS-306 (8-96)
15152
<PAGE>
