<PAGE>
Mutual Investment Fund
of Connecticut, Inc.
Financial Statements
December 31, 1999
<PAGE>
MUTUAL INVESTMENT FUND OF CONNECTICUT, INC.
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- -------- ------------
<S> <C> <C>
COMMON STOCKS (99.1%)
BASIC INDUSTRIES (4.7%)
CHEMICALS (2.2%)
Rohm & Haas Co. ................................. 23,600 $ 960,225
-----------
FOREST PRODUCTS & PAPER (1.4%)
Temple-Inland, Inc. ............................. 9,400 619,812
-----------
METALS & MINING (1.1%)
Allegheny Technologies, Inc...................... 10,250 229,984
USX-U.S. Steel Group............................. 8,100 267,300
-----------
497,284
-----------
TOTAL BASIC INDUSTRIES......................... 2,077,321
-----------
CONSUMER GOODS & SERVICES (16.2%)
AUTOMOTIVE (1.0%)
Lear Corp.+...................................... 14,100 451,200
-----------
BROADCASTING & PUBLISHING (1.3%)
AT+T Corp. - Liberty Media Group, Class A+....... 10,100 573,175
-----------
ENTERTAINMENT, LEISURE & MEDIA (4.0%)
America Online, Inc.+............................ 7,400 558,237
International Game Technology.................... 10,200 207,187
News Corp Ltd. (Spons. ADR)...................... 13,700 524,025
Seagram Co., Ltd.(i)............................. 10,300 462,856
-----------
1,752,305
-----------
FOOD, BEVERAGES & TOBACCO (2.2%)
Coca-Cola Co..................................... 6,700 390,275
Philip Morris Companies, Inc..................... 24,400 565,775
-----------
956,050
-----------
HOUSEHOLD PRODUCTS (2.4%)
Clorox Co........................................ 3,500 176,312
Procter & Gamble Co.............................. 8,200 898,412
-----------
1,074,724
-----------
PERSONAL CARE (1.7%)
Gillette Co...................................... 18,000 741,375
-----------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- -------- ------------
<S> <C> <C>
RETAIL (3.6%)
Abercrombie & Fitch Co., Class A+................ 9,200 $ 245,525
Circuit City Stores, Inc. - Circuit City Group... 5,500 247,844
Dayton Hudson Corp............................... 6,400 470,000
Wal-Mart Stores, Inc............................. 9,500 656,687
-----------
1,620,056
-----------
TOTAL CONSUMER GOODS & SERVICES................ 7,168,885
-----------
ENERGY (5.1%)
OIL-PRODUCTION (4.5%)
Conoco, Inc, Class B............................. 7,900 196,512
Exxon Mobil Corp................................. 18,009 1,450,850
Shell Transport & Trading Co. (ADR).............. 7,300 359,525
-----------
2,006,887
-----------
OIL-SERVICES (0.6%)
Cooper Cameron Corp.+............................ 5,200 254,475
-----------
TOTAL ENERGY................................... 2,261,362
-----------
FINANCE (12.8%)
BANKING (7.0%)
Astoria Financial Corp. ......................... 7,490 227,977
Bank of America Corp. ........................... 6,728 337,661
Citigroup, Inc. ................................. 7,700 427,831
First Union Corp................................. 24,100 790,781
KeyCorp.......................................... 11,200 247,800
U.S. Bancorp..................................... 20,300 483,394
Washington Mutual, Inc. ......................... 22,700 590,200
-----------
3,105,644
-----------
FINANCIAL SERVICES (1.8%)
C.I.T. Group Inc., Class A....................... 19,800 418,275
Federal Home Loan Mortgage Corp.................. 8,600 404,737
-----------
823,012
-----------
INSURANCE (4.0%)
Ambac Financial Group Inc........................ 10,200 532,312
Aon Corp......................................... 11,000 440,000
UnumProvident Corp............................... 11,200 359,100
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
1
<PAGE>
MUTUAL INVESTMENT FUND OF CONNECTICUT, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- -------- ------------
<S> <C> <C>
INSURANCE (CONTINUED)
XL Capital Ltd., Class A......................... 8,100 $ 420,187
-----------
1,751,599
-----------
TOTAL FINANCE.................................. 5,680,255
-----------
HEALTH CARE (9.5%)
HEALTH SERVICES (0.8%)
Tenet Healthcare Corp.+.......................... 15,500 364,250
-----------
MEDICAL SUPPLIES (0.9%)
PE Corp.- PE Biosystems Group.................... 3,400 409,063
-----------
PHARMACEUTICALS (7.8%)
ALZA Corp.+...................................... 14,700 508,988
American Home Products Corp...................... 9,900 390,431
Bristol-Myers Squibb Co.......................... 6,400 410,800
Eli Lilly & Co................................... 5,500 365,750
Forest Laboratories Inc.+........................ 11,000 675,813
Monsanto Co. .................................... 22,500 801,563
Warner-Lambert Co................................ 3,200 262,200
-----------
3,415,545
-----------
TOTAL HEALTH CARE.............................. 4,188,858
-----------
INDUSTRIAL PRODUCTS & SERVICES (12.1%)
AEROSPACE (0.7%)
Lockheed Martin Corp............................. 14,700 321,563
-----------
COMMERCIAL SERVICES (1.5%)
Cendant Corp.+................................... 24,500 650,781
-----------
DIVERSIFIED MANUFACTURING (5.3%)
Cooper Industries Inc............................ 3,100 125,356
Honeywell International, Inc..................... 10,700 617,256
Quantum Corp.+................................... 28,900 437,113
Tyco International Ltd.(i)....................... 29,528 1,147,901
-----------
2,327,626
-----------
FOREST PRODUCTS & PAPER (1.0%)
Smurfit - Stone Container Corp.+................. 17,700 433,650
-----------
MACHINERY (1.0%)
Deere & Co....................................... 10,400 451,100
-----------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- -------- ------------
<S> <C> <C>
MULTI-SECTOR (2.1%)
General Electric Co.............................. 6,100 $ 943,975
-----------
POLLUTION CONTROL (0.5%)
Waste Management, Inc............................ 11,492 197,519
-----------
TOTAL INDUSTRIAL PRODUCTS & SERVICES........... 5,326,214
-----------
TECHNOLOGY (28.8%)
COMPUTER PERIPHERALS (3.3%)
EMC Corp.+....................................... 8,900 972,325
Seagate Technology+.............................. 10,800 502,875
-----------
1,475,200
-----------
COMPUTER SOFTWARE (5.4%)
BMC Software, Inc................................ 3,000 239,813
Citrix Systems, Inc.+............................ 3,900 479,700
Microsoft Corp.+................................. 14,100 1,646,175
-----------
2,365,688
-----------
COMPUTER SYSTEMS (5.9%)
Compaq Computer Corp............................. 11,400 308,513
Dell Computer Corp.+............................. 6,200 316,200
International Business Machines Corp............. 5,200 561,600
Sun Microsystems, Inc.+.......................... 18,000 1,393,875
-----------
2,580,188
-----------
ELECTRONICS (4.4%)
Cisco Systems, Inc.+............................. 18,000 1,928,250
-----------
INFORMATION PROCESSING (0.6%)
DoubleClick, Inc.+............................... 1,100 278,369
-----------
SEMICONDUCTORS (3.7%)
Intel Corp....................................... 5,800 477,413
Motorola, Inc.................................... 4,000 589,000
Texas Instruments, Inc........................... 5,900 571,563
-----------
1,637,976
-----------
TELECOMMUNICATION SERVICES (4.0%)
Global Crossing Ltd.+............................ 11,300 565,000
MCI WorldCom, Inc.+.............................. 19,200 1,018,800
Sprint Corp. (PCS Group)+........................ 1,900 194,750
-----------
1,778,550
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
2
<PAGE>
MUTUAL INVESTMENT FUND OF CONNECTICUT, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- -------- ------------
<S> <C> <C>
TELECOMMUNICATIONS-EQUIPMENT (1.5%)
Lucent Technologies, Inc. ....................... 8,800 $ 658,350
-----------
TOTAL TECHNOLOGY............................... 12,702,571
-----------
TRANSPORTATION (2.1%)
RAILROADS (1.9%)
CSX Corp......................................... 6,900 216,488
Union Pacific Corp............................... 14,000 610,750
-----------
827,238
-----------
TRANSPORT & SERVICES (0.2%)
United Parcel Services, Inc, Class B............. 1,200 82,800
-----------
TOTAL TRANSPORTATION........................... 910,038
-----------
UTILITIES (7.8%)
ELECTRIC (0.9%)
Northern States Power Co......................... 20,400 397,800
-----------
NATURAL GAS (2.2%)
Columbia Gas System, Inc......................... 15,250 964,563
-----------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- -------- ------------
<S> <C> <C>
TELEPHONE (4.7%)
AT&T Corp........................................ 9,250 $ 469,438
GTE Corp......................................... 7,400 522,163
Level 3 Communications, Inc.+.................... 6,000 491,250
SBC Communications, Inc.......................... 12,100 589,875
-----------
2,072,726
-----------
TOTAL UTILITIES................................ 3,435,089
-----------
TOTAL INVESTMENTS
(COST $34,391,900)(99.1%)................................ 43,750,593
OTHER ASSETS IN EXCESS OF
LIABILITIES (0.9%)....................................... 386,357
-----------
NET ASSETS (100.0%)........................................ $44,136,950
===========
</TABLE>
- ------------------------------
Note: The cost of securities for federal income tax purposes at December 31,
1999 was $35,211,047, the aggregate gross unrealized appreciation and
depreciation was $10,754,587 and $2,215,041, respectively, resulting in net
unrealized appreciation of $8,539,546.
+ Non-income producing security.
(i) Foreign security.
ADR - American Depositary Receipt
Spons. ADR - Sponsored ADR
The Accompanying Notes are an Integral Part of the Financial Statements.
3
<PAGE>
MUTUAL INVESTMENT FUND OF CONNECTICUT, INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $34,391,900) $43,750,593
Cash 694,210
Dividends Receivable 35,442
Receivable for Expense Reimbursement 8,669
Interest Receivable 3,093
Prepaid Directors' Fees 2,875
Prepaid Expenses and Other Assets 810
-----------
Total Assets 44,495,692
-----------
LIABILITIES
Distributions Payable to Shareholders 272,573
Advisory Fee Payable 18,333
Custody Fee Payable 7,818
Administration Fee Payable 4,987
Accrued Expenses 55,031
-----------
Total Liabilities 358,742
-----------
NET ASSETS
Applicable to 1,225,468 Shares of Beneficial
Interest Outstanding (2,000,000 shares
authorized without par value) $44,136,950
===========
Net Asset Value, Offering and Redemption Price
per Share $36.02
-----
-----
ANALYSIS OF NET ASSETS
Paid-in Capital $35,524,870
Undistributed Net Investment Income 12,227
Distributions in Excess of Net Realized Gain on
Investments (758,840)
Net Unrealized Appreciation of Investments 9,358,693
-----------
Net Assets $44,136,950
===========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
4
<PAGE>
MUTUAL INVESTMENT FUND OF CONNECTICUT, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividend Income (Net of Foreign Withholding Tax
of $3,457) $ 557,604
Interest Income 44,259
----------
Investment Income 601,863
FUND EXPENSES
Advisory Fee $217,403
Custodian Fees and Expenses 42,576
Professional Fees and Expenses 39,170
Transfer Agent Expense 16,283
Administration Fee 6,555
Printing Expenses 4,748
Directors' Fees and Expenses 3,690
Insurance Expense 3,318
Miscellaneous 12,921
--------
Total Expenses 346,664
Less: Reimbursement of Expenses (7,517)
--------
NET FUND EXPENSES 339,147
----------
NET INVESTMENT INCOME 262,716
NET REALIZED GAIN ON INVESTMENTS 5,714,395
NET CHANGE IN UNREALIZED APPRECIATION OF
INVESTMENTS (91,226)
----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $5,885,885
==========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
5
<PAGE>
MUTUAL INVESTMENT FUND OF CONNECTICUT, INC.
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
----------------- -----------------
<S> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 262,716 $ 326,889
Net Realized Gain on Investments 5,714,395 7,154,869
Net Change in Unrealized Appreciation
(Depreciation) of Investments (91,226) 1,775,166
---------------- ----------------
Net Increase in Net Assets Resulting from
Operations 5,885,885 9,256,924
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (256,230) (326,942)
Net Realized Gain (5,791,147) (7,078,703)
In Excess of Net Realized Gain (758,840) --
---------------- ----------------
Total Distributions to Shareholders (6,806,217) (7,405,645)
---------------- ----------------
FROM SHAREHOLDER TRANSACTIONS
Proceeds from Shares Sold 465,000 1,500,000
Reinvestment of Dividends and Distributions 4,596,311 4,744,560
Cost of Shares Redeemed (3,129,558) (4,811,800)
---------------- ----------------
Net Increase from Shareholder Transactions 1,931,753 1,432,760
---------------- ----------------
Total Increase in Net Assets 1,011,421 3,284,039
NET ASSETS
Beginning of Year 43,125,529 39,841,490
---------------- ----------------
End of Year (including undistributed net
investment income of $12,227 and $0,
respectively) $ 44,136,950 $ 43,125,529
================ ================
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
6
<PAGE>
MUTUAL INVESTMENT FUND OF CONNECTICUT, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout each year is as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
-------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $ 37.08 $ 35.72 $ 37.55 $ 34.77 $ 30.54
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.23 0.31 0.34 0.43 0.59
Net Realized and Unrealized Gain on Investments 4.84 8.15 10.26 6.82 9.10
------- ------- ------- ------- -------
Total from Investment Operations 5.07 8.46 10.60 7.25 9.69
------- ------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (0.22) (0.31) (0.34) (0.43) (0.59)
Net Realized Gain (5.22) (6.79) (12.09) (4.04) (4.87)
In Excess of Net Realized Gain (0.69) -- -- -- --
------- ------- ------- ------- -------
Total Distributions to Shareholders (6.13) (7.10) (12.43) (4.47) (5.46)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF YEAR $ 36.02 $ 37.08 $ 35.72 $ 37.55 $ 34.77
======= ======= ======= ======= =======
RATIOS AND SUPPLEMENTAL DATA
Total Return 14.42% 23.92% 29.44% 21.44% 32.11%
Net Assets, End of Year (in thousands) $44,137 $43,126 $39,841 $40,563 $32,600
Ratios to Average Net Assets
Net Expenses 0.78% 0.78% 0.78% 0.81% 0.69%
Net Investment Income 0.60% 0.76% 0.80% 1.18% 1.66%
Expenses without Reimbursement 0.80% 0.79% 0.78% 0.96% 0.69%
Portfolio Turnover 93% 90% 109% 99% 71%
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
7
<PAGE>
MUTUAL INVESTMENT FUND OF CONNECTICUT, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Mutual Investment Fund of Connecticut, Inc. (the "fund") is a diversified
open-end management investment company registered under the Investment Company
Act of 1940, as amended (the "Act"). The fund's investment objective is capital
growth consistent with an effort to reduce volatility. The fund seeks to achieve
its objective by investing in a diversified portfolio of securities consisting
principally of common stock. Under the terms of its Bylaws and Certificate of
Incorporation, fund shares may be owned by state bank and trust companies,
national banks, state or federally chartered savings and loan associations or
state or federally chartered savings banks (and pension plans of the preceding)
located in Connecticut, by Connecticut bank trade associations of any of the
foregoing, provided any such trade association is classified as such under
Section 501(e)(6) of the Internal Revenue Code.
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. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies of the fund:
a) The fund values securities that are listed on an exchange using prices
supplied daily by an independent pricing service that are based on the
last traded price on a national exchange or in the absence of recorded
trades, at the readily available mean of the bid and asked prices on such
exchange, if such exchange or market constitutes the broadest and most
representative market for the security. Securities listed on a foreign
exchange are valued at the last traded price or in the absence of recorded
trades, at the readily available mean of the bid and asked prices on such
exchange available before the time when net assets are valued. Independent
pricing service procedures may also include the use of prices based upon
yields or prices of securities of comparable quality, coupon, maturity and
type, indications as to values from dealers, operating data, and general
market conditions. Unlisted securities are valued at the last traded price
in the over-the-counter market provided by a principal market maker or
dealer. If prices are not supplied by the fund's independent pricing
service or principal market maker or dealer, such securities are priced
using fair values in accordance with procedures adopted by the fund's
trustees. All short-term securities with a remaining maturity of sixty
days or less are valued using the amortized cost method.
b) Securities transactions are recorded on a trade date basis. Dividend
income is recorded on the ex-dividend date or as of the time that the
relevant ex-dividend date and amount becomes known. Interest income, which
includes amortization of premiums and discounts, if any, is recorded on an
accrual basis. For financial and tax reporting purposes, realized gains
and losses are determined on the basis of specific lot identification.
c) The fund intends to comply with the provisions of the Internal Revenue
Code of 1986, as amended, applicable to regulated investment companies and
to distribute substantially all of its income, including net realized
capital gains, if any, within the prescribed time periods. Accordingly, no
provision for federal income or excise tax is necessary.
d) The fund records dividends and distributions to its shareholders on the
ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in
accordance with federal income tax regulations which may differ from
generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To
8
<PAGE>
MUTUAL INVESTMENT FUND OF CONNECTICUT, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
the extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassification.
e) The fund accounts for and reports distributions to shareholders in
accordance with Statement of Position 93-2 "Determination, Disclosure and
Financial Statement Presentation of Income, Capital Gain and Return of
Capital Distributions by Investment Companies." The effect of applying
this statement was to increase undistributed net income by $5,741 and
decrease paid in capital by $5,741. The adjustment is attributable to
non-deductible expenses. Net investment income, net realized gains, and
net assets were not affected by this change.
2. TRANSACTIONS WITH AFFILIATES
a) The fund has an Investment Advisory Agreement with J.P. Morgan Investment
Management Inc. ("JPMIM"), an affiliate of Morgan Guaranty Trust Company
of New York ("Morgan") and a wholly owned subsidiary of J.P. Morgan and
Co. Incorporated ("J.P. Morgan"). Under the terms of the agreement, the
fund pays JPMIM at an annual rate of 0.50% of the first $75,000,000 of the
fund's average daily net assets and 0.45% of the next $75,000,000 of the
fund's average daily net assets. Notwithstanding the foregoing, the fund
has agreed to pay JPMIM a minimum annual fee of $125,000 for its services
as investment advisor. For the year ended December 31, 1999, such fees
amounted to $217,403.
b) The fund has a Services Agreement with Morgan under which Morgan acts as
the fund's custodian, transfer agent and registrar, and provides financial
and fund accounting oversight services to the fund. Morgan is also
responsible for certain usual and customary expenses incurred by the fund.
These expenses include, but are not limited to, federal and state
governmental fees; interest charges; taxes; expenses of the fund's
administrator; fees and expenses of any subcustodian or subtransfer agent;
expenses of the fund's Directors in connection with their duties as
Directors; fees and expenses of the fund's independent auditors and legal
counsel; the expenses of printing and mailing reports; notices and proxies
to fund shareholders; the expenses of meetings of shareholders and of the
Board of Directors; and insurance premiums. The fund will pay these
expenses directly and such amounts will be deducted from the fee to be
paid to Morgan under the Services Agreement. This fee is computed daily
and payable monthly at the annual rate of 0.28% of the fund's average
daily net assets. If such amounts are more than the amount of Morgan's fee
under the Services Agreement, Morgan will reimburse the fund for such
excess amounts. For the year ended December 31, 1999, Morgan has agreed to
reimburse the fund $7,517 for expenses under this agreement.
c) Administration of the fund is currently provided by The Connecticut
Banker's Association (the "Association"). The Association is reimbursed
for reasonable expenses incurred in connection with such administration.
For the year ended December 31, 1999, the fund reimbursed the Association
$6,555 for administration expenses incurred.
9
<PAGE>
MUTUAL INVESTMENT FUND OF CONNECTICUT, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the year ended
December 31, 1999 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
- --------- -----------
<S> <C>
$40,021,227 $43,992,758
</TABLE>
4. SHAREHOLDER TRANSACTIONS
At December 31, 1999, there were 2,000,000 shares authorized without par value.
Transactions in capital shares of the fund were as follows:
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
----------------- -----------------
<S> <C> <C>
Shares sold...................................... 12,003 42,591
Reinvestment of dividends and distributions...... 130,479 127,988
Shares redeemed.................................. (80,211) (122,675)
---------------- ----------------
Net Increase..................................... 62,271 47,904
================ ================
</TABLE>
From time to time, the fund may have a concentration of several shareholders
holding a significant percentage of shares outstanding. Investment activities of
these shareholders could have a material impact on the fund.
- --------------------------------------------------------------------------------
TAX INFORMATION NOTICE (UNAUDITED)
For federal income tax purposes, the following information is furnished with
respect to distributions of the fund. Shareholders received a 1999 U.S. Treasury
Department Form 1099-DIV in January 2000. This will reflect the total of all
distributions which are taxable for calendar year 1999.
<TABLE>
<CAPTION>
PER SHARE
----------------------------
ORDINARY LONG-TERM
INCOME CAPITAL GAIN
RECORD DATE EX DATE PAY DATE DISTRIBUTIONS DISTRIBUTIONS
- ------------------ ------------------ ------------------ ------------- -------------
<S> <C> <C> <C> <C>
March 30, 1999 March 31, 1999 April 1, 1999 $ 0.06067774 $ --
June 29, 1999 June 30, 1999 July 1, 1999 0.05705218 --
September 29, 1999 September 30, 1999 October 1, 1999 0.06688856 --
December 30, 1999 December 31, 1999 January 3, 2000 0.03814661 --
September 8, 1999 September 9, 1999 September 10, 1999 2.38852000 2.82343
December 30, 1999 December 31, 1999 January 3, 2000 0.1771200 0.51821
------------ ------------
$ 2.78840509 $ 3.34164
============ ============
</TABLE>
For corporate taxpayers 19.14% of the ordinary income distributions paid during
the calendar year 1999 qualify for the corporate dividends received deductions.
10
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
Mutual Investment Fund of Connecticut, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and financial highlights present fairly, in all material
respects, the financial position of Mutual Investment Fund of Connecticut, Inc.
(the "fund") at December 31, 1999, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles generally accepted
in the United States. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 15, 2000
11
