<PAGE> 1
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SEMI-ANNUAL REPORT
NOVEMBER 30, 1997
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American
[GRAPHIC] General
Series
Portfolio
Company
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AMERICAN GENERAL SERIES PORTFOLIO COMPANY - SEMI-ANNUAL REPORT
NOVEMBER 30, 1997
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TABLE OF CONTENTS
<TABLE>
<S> <C>
President's Letter ........................................................ 1
Stock Index Fund .......................................................... 4
MidCap Index Fund ......................................................... 12
Small Cap Index Fund ...................................................... 19
International Equities Fund ............................................... 35
Growth Fund ............................................................... 41
Growth & Income Fund ...................................................... 44
Science & Technology Fund ................................................. 48
Social Awareness Fund ..................................................... 51
Asset Allocation Fund ..................................................... 57
Capital Conservation Fund ................................................. 66
Government Securities Fund ................................................ 69
International Government Bond Fund ........................................ 71
Money Market Fund ......................................................... 75
Notes to Financial Statements ............................................. 78
Financial Highlights ...................................................... 81
</TABLE>
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<PAGE> 3
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AGSPC PRESIDENT'S LETTER 1
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Dear Valued Customer,
In today's environment of rapidly changing markets, the commitment to your
financial security remains American General Series Portfolio Company's highest
priority. This dedication is reflected in the performance of our funds, and it
is my pleasure to introduce AGSPC's November 30, 1997 Semi-Annual Report for
your review. In this report, you will find financial and performance information
for AGSPC's thirteen funds for the six-month period ending November 30, 1997.
Through your variable annuity contract, you are permitted to invest in one or
more of the funds described in this report. Please refer to the chart on page 3
to determine which funds are available under your contract.
MARKET CONDITIONS
On average, securities markets produced positive returns for the six months
ended November 30, 1997. According to Standard & Poor's 500 Index (S&P 500(R)),
the large capitalization sector of the stock market provided a total return of
13.58%, modestly below the 15.83% return of the Standard & Poor's MidCap 400
Index (MidCap 400). Meanwhile, the performance of smaller companies, as measured
by the Russell 2000(R), produced a return of 13.80%. Corporate bonds provided
total returns of 7.44% and Treasury Securities yielded 6.87%.
Several factors influenced equity and fixed income markets: 1) a market-friendly
Federal Reserve policy, holding the Federal Funds rate at 5.5%; 2) a modest
growth in Gross Domestic Product approximating 3.2%; and 3) contained inflation
with the Consumer Price Index averaging an annual rate of 2%.
The subdued economic growth rate, combined with a modest inflation rate, drove
the bond market returns. Long-term bond yields, as measured by the U.S.
Treasury, decreased nearly one full percentage point to 6.1% at the end of
November. The Merrill Lynch Corporate Bond Index returned 7.44% and the Lehman
Brothers U.S. Treasury Index yielded a total of 6.87%.
International markets were impacted by a crisis in Southeast Asia's economy,
causing major losses in stock markets throughout the region. There is potential
for further losses, as higher real interest rates, deflation, and currency
weakness take their toll on those economies. On the other hand, Europe has
experienced positive stock market performance as the result of mergers and
acquisitions, and major multi-national concerns are benefiting from the stronger
Dollar.
FUND RETURNS(1)
INDEXED FUNDS
Due to the fact that these funds emulate their respective indexes, there was
little variance in the performance of AGSPC's Indexed Funds. The Stock Index
Fund's performance was 13.53%, 0.05% below the S&P 500, while the MidCap Index
Fund returned 15.89%, surpassing the MidCap 400 by 0.06%. The Small Cap Index
Fund also exceeded its index (the Russell 2000) by 0.23% with a return of
14.03%. The International Equities Fund maintained a positive tracking
difference of 0.22%; however, due to the Asian market crisis, it performed at
- -4.05%.
MANAGED FUNDS
AGSPC's Growth Fund concentrates on companies with above average growth
potential in the service sectors, and recorded a total return of 13.99%, 0.41%
above its index. The Growth & Income Fund utilizes the stock selection process
of the Value Line Ranking System which tends to emphasize small and mid-sized
companies. Mid-sized company growth aided performance, producing a total return
of 14.43%, 0.85% above the S&P 500.
The Science & Technology Fund's concentration in volatile sectors led to
substantial valuation changes. Investors as well as the personal computer
manufacturers and distributors showed concern regarding the networking sector.
As a result, the fund's return was 5.85%, 7.73% below the S&P 500. Both the
absence of tobacco stocks and a smaller percentage of chemical-related
investments were positive factors for AGSPC's Social Awareness Fund. However,
railroad and domestic petroleum investments detracted from performance, and the
return fell short of the S&P 500 by 0.23%.
The Asset Allocation Fund (previously the Timed Opportunity Fund) returned
10.51%, outperforming its benchmark by 0.27%. The stock and bond components have
tracked their respective indexes within one-half of a percent.
BOND FUNDS
Two significant East Asian holdings experienced reductions in value, causing the
Capital Conservation Fund to under-perform its relevant index by 0.74%,
returning 6.70%. The Government Securities Fund returned 6.63%, 0.24% under its
relevant index.
The International Government Bond Fund outperformed its relevant index by 0.44%,
providing a fund level return of 1.44%. In general, international government
markets had positive returns due to several factors. The European Union required
its members to be fiscally responsible, there was widespread expectation of
moderate inflation, and assets in Pacific Rim investments were redirected into
European bonds.
FUTURE OUTLOOK
The excellent performance of the equity and bond markets from 1995 through the
third quarter of 1997 was followed by a correction in equity markets. Once
again, the driving force for the correction came from an unanticipated source --
the currency and credit crises in Southeast Asia.
Equity markets should benefit from steady or declining interest rates, and
earnings will drive divergence in the market. As currency devaluations make
American goods more expensive, large multi-national companies will likely find
reduced demand for their products in Asia. Subsequently, less expensive imports
from Asia will put pressure on American companies to lower prices on goods such
as automobiles. In this scenario, small and medium-sized companies would benefit
because lower prices for imported goods increase real disposable income.
Fixed income markets will profit if the world-wide moderation of inflation
continues. For the first time in decades, the bond market may also benefit from
a potential U.S. Government surplus. Finally, the Federal Reserve may be forced
to lower interest rates if the economic flu in Asia carries over into U.S.
markets. The potential for rising equity valuations and declining interest rates
could foster another year of above-average returns in both the stock and bond
markets. With this exciting prospect in mind, I hope that you will continue to
entrust your future with us.
We strive to provide a variety of quality options to meet your investment needs.
Thank you for your continued confidence in our ability to invest your funds
wisely.
Sincerely,
/s/ Thomas L. West, Jr.
Thomas L. West, Jr., Chairman and President
January 21, 1998 American General Series Portfolio Company
FUND RETURNS(1) TO INDEX
6 Months Ended 11/30/97
[GRAPH]
(1) Represents fund performance before subtracting expenses. See page two for
applicable fund expenses and fund level returns after expenses.
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2 AGSPC PRESIDENT'S LETTER CONTINUED
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FUND RETURNS AND TRACKING DIFFERENCES
For the six months ended November 30, 1997
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
FUND TOTAL
PERFORMANCE INDEX
BEFORE RETURN
SUBTRACTING INCLUDING TRACKING
FUND FUND EXPENSES REINVESTED DIFFERENCE
AGSPC FUND/RELEVANT MARKET INDEX RETURN(a) EXPENSES (1) + (2) DIVIDENDS (3) - (4)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INDEXED FUNDS:
Stock Index Fund/S&P 500 .............................. 13.37% 0.16% 13.53% 13.58% (0.05)%
MidCap Index Fund/
Standard & Poor's MidCap 400 ........................ 15.70 0.19 15.89 15.83 0.06
Small Cap Index Fund/Russell 2000 ..................... 13.83 0.20 14.03 13.80 0.23
International Equities Fund/EAFE ...................... (4.26) 0.21 (4.05) (4.27) 0.22
MANAGED FUNDS:
Growth Fund/S&P 500 ................................... 13.56 0.43 13.99 13.58 0.41
Growth & Income Fund/S&P 500 .......................... 14.03 0.40 14.43 13.58 0.85
Science & Technology Fund/S&P 500 ..................... 5.37 0.48 5.85 13.58 (7.73)
Social Awareness Fund/S&P 500 ......................... 13.07 0.28 13.35 13.58 (0.23)
Asset Allocation Fund/Benchmark(b) .................... 10.23 0.28 10.51 10.24 0.27
Capital Conservation Fund/
Merrill Lynch Corporate Master Bond ................. 6.42 0.28 6.70 7.44 (0.74)
Government Securities Fund/
Lehman Brothers U.S. Treasury ....................... 6.36 0.27 6.63 6.87 (0.24)
Int'l Gov't Bond Fund/
Salomon Non U.S. Gov't Bond ......................... 1.16 0.28 1.44 1.00 0.44
Money Market Fund/30 Day Certificate of Deposit
Primary Offering Rate by New York City Banks
(NYC 30 Day CD Rate) ................................ 2.59 0.27 2.86 2.38 0.48
</TABLE>
(a) Fund level returns are net of investment management fees and other fund
expenses, but do not reflect charges specified in annuity contracts for
mortality and expense guarantees, administrative fees, or surrender
charges.
(b) Benchmark consists of 55% S&P 500 Index, 35% Merrill Lynch Corporate and
Government Master Index, and 10% NYC 30 Day CD Rate.
SUMMARY OF NET ASSET VALUES PER SHARE
AND PER SHARE DISTRIBUTIONS
<TABLE>
<CAPTION>
DISTRIBUTIONS FROM NET
INVESTMENT INCOME AND
NET REALIZED GAINS
NET ASSET VALUES ON SECURITIES
-------------------------------------- -----------------------
(UNAUDITED) (UNAUDITED)
NOVEMBER 27, MAY 31, NOVEMBER 30, 12/1/96 TO 6/1/97 TO
FUND 1996 1997 1997 5/31/97 11/30/97
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<S> <C> <C> <C> <C> <C>
Stock Index (emulate S&P 500) ........................ $23.37 $26.09 $29.38 $ 0.37 $ 0.51
MidCap Index (emulate MidCap 400) .................... 20.33 20.83 23.98 1.33 0.12
Small Cap Index (emulate Russell 2000) ............... 15.94 16.18 18.32 1.08 0.10
International Equities
(foreign long term growth stocks) .................. 11.43 11.44 10.83 0.43 0.14
Growth Fund (long term growth of capital) ............ 17.51 17.62 20.01 0.34 0.00
Growth & Income Fund (long term growth
of capital and current income) ..................... 16.13 16.87 19.20 0.35 0.04
Science & Technology Fund (long term growth
of capital) ........................................ 21.28 19.88 20.98 0.93 0.00
Social Awareness (social criteria growth stocks) ..... 17.72 17.90 20.12 1.90 0.10
Asset Allocation (asset allocation) .................. 13.23 12.57 13.65 1.98 0.20
Capital Conservation (quality corporate bonds) ....... 9.59 9.31 9.61 0.32 0.29
Government Securities (intermediate and
long term government bonds) ........................ 9.91 9.67 9.99 0.30 0.29
International Government Bond (high quality
foreign government debt securities)................. 12.27 11.33 11.27 0.29 0.19
Money Market (money market instruments) .............. 1.00 1.00 1.00 0.03 0.03
</TABLE>
The change in net asset value of the funds will not be the same as the change in
the accumulation unit value of your annuity contract because (1) the change in
net asset value does not reflect the reinvestment of income and capital gain
distributions and (2) the mortality and expense charges described in your
annuity contract are not included.
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AGSPC PRESIDENT'S LETTER CONTINUED 3
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FUNDS AVAILABLE UNDER VARIABLE ANNUITY CONTRACTS
<TABLE>
<CAPTION>
VALIC SEPARATE ACCOUNT A
-----------------------------------------------------
CONTRACT FORM AG LIFE SEPARATE
----------------------------------------------------- ACCOUNT A AG LIFE AG LIFE
PORTFOLIO PORTFOLIO INDEPEN- GROUP -------------------- SEPARATE SEPARATE
DIRECTOR DIRECTOR DENCE PLUS IMPACT UNIT PUR- NON ACCOUNT ACCOUNT
FUND 2* 1* UIT(G)-585 UIT-981 CHASE** QUALIFIED QUALIFIED B D
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Stock Index
(emulate S&P 500)................... Yes Yes Yes Yes Yes Yes Yes Yes Yes
MidCap Index
(emulate MidCap 400)................ No Yes Yes Yes No Yes Yes Yes No
Small Cap Index
(emulate Russell 2000).............. No Yes Yes No No No No No No
International Equities
(foreign long term growth stocks)... No Yes Yes No No No No No Yes
Growth Fund
(long term growth of capital)....... Yes Yes No No No No No No No
Growth & Income Fund (long term
growth of capital and current
income)............................. No Yes No No No No No No No
Science & Technology Fund
(long term growth of capital)....... Yes Yes No No No No No No No
Social Awareness
(social criteria growth stocks)..... Yes Yes Yes No No No No No Yes
Asset Allocation Fund
(asset allocation).................. No Yes Yes Yes No Yes Yes Yes No
Capital Conservation
(quality corporate bonds)........... No Yes Yes Yes No Yes Yes Yes No
Government Securities (intermediate
and long term government bonds)..... No Yes Yes No No Yes Yes Yes No
Int'l Government Bond (high quality
foreign government debt
securities)......................... Yes Yes Yes No No No No No No
Money Market
(money market instruments).......... Yes Yes Yes Yes No Yes Yes Yes No
</TABLE>
* UIT(G)194, UITN-194, UIT-IRA-194, UIT-SEP-194
** GUP, IVA, GVA SA-1, GVA SA-2
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<PAGE> 6
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4 STOCK INDEX FUND - STATEMENT OF NET ASSETS
November 30, 1997 (Unaudited)
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<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 99.19%
ADVERTISING - 0.07%
43,350 Interpublic Group Cos., Inc.... $ 2,078,091
------------
AEROSPACE/DEFENSE - 1.74%
384,708 Boeing Co...................... 20,437,613
29,000 EG & G, Inc.................... 569,125
27,980 General Dynamics Corp.......... 2,423,768
15,400 Goodrich (B.F.) Co............ 685,300
78,176 Lockheed Martin Corp........... 7,627,046
29,200 Northrop Grumman Corp.......... 3,292,300
95,900* Raytheon Co.................... 5,364,406
44,000 TRW Inc........................ 2,497,000
96,800 United Technologies Corp....... 7,253,950
------------
50,150,508
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AIRLINES - 0.42%
35,700* AMR Corp....................... 4,326,394
31,600 Delta Air Lines, Inc........... 3,521,425
82,800 Southwest Airlines Co.......... 2,023,425
41,400* US Airways Group, Inc.......... 2,282,175
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12,153,419
------------
APPAREL & PRODUCTS - 0.08%
27,000* Fruit of the Loom, Inc.
Class A ...................... 629,438
32,900 Liz Claiborne, Inc............. 1,653,225
------------
2,282,663
------------
APPLIANCES/FURNISHINGS - 0.10%
35,000 Maytag Corp.................... 1,130,938
30,200 Whirlpool Corp................. 1,655,338
------------
2,786,276
------------
AUTO - CARS - 1.57%
275,374 Chrysler Corp.................. 9,448,770
437,300 Ford Motor Co.................. 18,803,900
278,200 General Motors Corp............ 16,970,200
------------
45,222,870
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AUTO - REPLACEMENT PARTS - 0.31%
44,200* AutoZone, Inc.................. 1,326,000
18,700 Cooper Tire & Rubber Co........ 418,412
14,300 Echlin Inc..................... 453,131
74,400 Genuine Parts Co............... 2,380,800
65,800 Goodyear Tire & Rubber Co. .... 3,993,237
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
AUTO - REPLACEMENT PARTS - Continued
15,800* Pep Boys-Manny, Moe & Jack..... $ 396,975
------------
8,968,555
------------
BANKS - NEW YORK CITY - 1.94%
148,600 Bank of New York Co., Inc...... 7,987,250
166,882 Chase Manhattan Corp........... 18,127,557
175,700 CitiCorp....................... 21,073,019
76,300 J. P. Morgan & Co. Inc........ 8,712,506
------------
55,900,332
------------
BANKS - OTHER - 2.73%
266,736 BankAmerica Corp............... 19,471,728
60,400 BankBoston Corp................ 5,383,150
121,923 First Chicago Corp............. 9,540,475
234,094 First Union Corp............... 11,412,082
105,393 Fleet Financial Group, Inc..... 6,962,525
109,000 Mellon Bank Corp............... 6,178,938
73,200 National City Corp............. 4,886,100
51,600 Providian Financial Corp....... 2,273,625
14,000 Republic of New York Corp...... 1,522,500
36,333 Wells Fargo & Co............... 11,163,314
------------
78,794,437
------------
BANKS - REGIONAL - 3.51%
210,672 BANC ONE CORP.................. 10,823,275
86,000 Barnett Banks, Inc............. 6,052,250
32,700 Comerica Inc................... 2,785,631
88,600 CoreStates Financial Corp...... 6,849,887
67,650 Fifth Third Bancorp............ 4,769,325
59,600 Huntington Bancshares, Inc..... 2,026,400
85,170 KeyCorp........................ 5,743,652
287,792 NationsBank Corp............... 17,285,507
313,400 Norwest Corp................... 11,732,913
135,900 PNC Bank Corp.................. 7,313,119
61,200 State Street Corp.............. 3,641,400
72,200 SunTrust Banks, Inc............ 5,126,200
53,600 Synovus Financial Corp......... 1,711,850
103,330 U.S. Bancorp................... 11,114,433
55,513 Wachovia Corp.................. 4,274,501
------------
101,250,343
------------
BEVERAGE - BREWERS/
DISTRIBUTORS - 0.48%
11,900 Adolph Coors Class B........... 428,400
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
BEVERAGE - BREWERS/
DISTRIBUTORS - Continued
193,000 Anheuser-Busch Companies, Inc.. $ 8,335,187
18,915 Brown-Forman Corp Class B...... 971,758
128,400 Seagram Co. Ltd................ 4,148,925
------------
13,884,270
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BEVERAGE - SOFT DRINKS - 2.81%
955,500 Coca-Cola Co................... 59,718,750
580,700 PepsiCo, Inc................... 21,413,312
------------
81,132,062
------------
BROADCASTING - 1.02%
38,600* Clear Channel Communications,
Inc. ......................... 2,615,150
121,350 Comcast Corp. Class A Special.. 3,397,800
165,778* Tele-Comm Liberty Media Group
Class A....................... 3,797,361
204,800 U S West Communications Group.. 9,254,400
226,800* U S West Media Group........... 6,024,375
122,700* Viacom, Inc Class B............ 4,294,500
------------
29,383,586
------------
BUILDING MATERIALS - 0.30%
8,900 Armstrong World Industries,
Inc. ......................... 613,544
67,100 Lowe's Companies, Inc.......... 3,082,406
70,100 Masco Corp..................... 3,303,463
60,700 Sherwin-Williams Co............ 1,733,744
------------
8,733,157
------------
CHEMICAL - MAJOR - 1.99%
97,400 Dow Chemical Co................ 9,618,250
427,900 E.I. du Pont de Nemours
and Co........................ 25,914,694
39,300 Hercules, Inc.................. 1,908,506
229,700 Monsanto Co.................... 10,035,019
54,900 Morton International, Inc...... 1,870,031
66,500 PPG Industries, Inc............ 3,852,844
18,300 Rohm and Haas Co............... 1,682,456
59,500 Union Carbide Corp............. 2,625,438
------------
57,507,238
------------
CHEMICAL - MISCELLANEOUS - 0.55%
41,100 Air Products and Chemicals Inc. 3,151,856
30,637 Eastman Chemical Co............ 1,849,709
8,550 Ecolab Inc..................... 436,050
15,300* FMC Corp....................... 1,117,856
</TABLE>
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<PAGE> 7
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STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 5
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
CHEMICAL - MISCELLANEOUS - Continued
26,500 Great Lakes Chemical Corp...... $ 1,189,187
15,428 Millipore Corp................. 597,835
20,300 Nalco Chemical Co.............. 787,894
59,200 Praxair, Inc................... 2,601,100
39,500 Sigma Aldrich Corp............. 1,426,938
37,800 W. R. Grace & Co............... 2,749,950
------------
15,908,375
------------
CONGLOMERATES - 1.00%
211,600 Allied Signal Inc.............. 7,855,650
38,800 ITT Industries, Inc............ 1,231,900
39,400 Loews Corp..................... 4,181,325
65,200 Tenneco Inc.................... 2,823,975
55,200 Textron Inc.................... 3,263,700
206,800 Tyco International Ltd......... 8,116,900
53,900 Whitman Corp................... 1,418,244
------------
28,891,694
------------
CONSUMER FINANCE - 0.22%
20,400 Beneficial Corp................ 1,583,550
174,675 MBNA Corp...................... 4,639,805
------------
6,223,355
------------
CONTAINERS - METAL/GLASS - 0.34%
4,700 Ball Corp...................... 180,950
99,300 Corning Inc.................... 4,214,044
61,600 Crown Cork & Seal Co., Inc..... 3,006,850
12,100 Owens Corning.................. 444,675
61,200* Owens-Illinois, Inc............ 2,073,150
------------
9,919,669
------------
CONTAINERS - PAPER - 0.04%
6,500 Bemis Co., Inc................. 273,812
17,700 Temple-Inland Inc.............. 1,011,113
------------
1,284,925
------------
COSMETICS/TOILETRIES - 0.87%
6,800 Alberto-Culver Co. Class B..... 212,075
60,100 Avon Products, Inc............. 3,474,531
208,800 Gillette Co.................... 19,274,850
45,300 International Flavors &
Fragrances, Inc............... 2,182,894
------------
25,144,350
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
DRUGS - 7.21%
22,500 Allergan, Inc.................. $ 762,187
43,200* ALZA Corp...................... 1,152,900
241,200 American Home Products Corp.... 16,853,850
111,000* Amgen Inc...................... 5,674,875
23,900 Bausch & Lomb Inc.............. 947,037
383,500 Bristol Myers Squibb Co........ 35,905,187
421,400 Eli Lilly and Co............... 26,574,538
459,000 Merck & Co., Inc............... 43,404,188
501,800 Pfizer, Inc.................... 36,505,950
209,870 Pharmacia & Upjohn, Inc........ 7,083,112
293,600 Schering-Plough Corp........... 18,405,050
104,300 Warner-Lambert Co.............. 14,588,962
------------
207,857,836
------------
ELECTRICAL EQUIPMENT - 4.19%
93,700 AMP Inc........................ 4,070,094
62,000* Cabletron Systems, Inc......... 1,426,000
181,200 Emerson Electric Co............ 9,966,000
1,256,900 General Electric Co............ 92,696,375
30,500 National Service Industries,
Inc. ......................... 1,427,781
21,600 Raychem Corp................... 2,042,550
6,800 Thomas & Betts Corp............ 308,550
252,458 Westinghouse Electric Corp..... 7,573,740
14,200 W. W. Grainger Inc............. 1,329,475
------------
120,840,565
------------
ELECTRONIC INSTRUMENTS - 0.18%
1* Commscope Inc.................. 11
28,100 General Signal Corp............ 1,146,831
19,400 Perkin-Elmer Corp.............. 1,349,513
5,400 Tektronix, Inc................. 226,463
70,400* Thermo Electron Corp........... 2,591,600
------------
5,314,418
------------
ENTERTAINMENT - 1.59%
39,400* Harrah's Entertainment, Inc.... 790,462
67,475 Hasbro, Inc.................... 1,960,992
16,200* King World Productions, Inc.... 880,875
117,787 Mattel, Inc.................... 4,718,842
210,200 Time Warner Inc................ 12,244,150
266,052 Walt Disney Co................. 25,258,312
------------
45,853,633
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
FINANCE COMPANIES - 0.50%
59,300 Green Tree Financial Corp...... $ 1,816,062
42,800 Household International, Inc... 5,392,800
47,700* ITT Corp....................... 3,619,237
90,150 SunAmerica, Inc................ 3,651,075
------------
14,479,174
------------
FINANCIAL SERVICES - 0.60%
176,200 American Express Co............ 13,897,775
39,800 Countrywide Credit Industries,
Inc. ......................... 1,629,312
40,100 H & R Block Inc................ 1,644,100
------------
17,171,187
------------
FOODS - 2.45%
215,192 Archer Daniels Midland Co...... 4,599,728
173,900 Campbell Soup Co............... 9,738,400
178,700 ConAgra, Inc................... 6,422,031
56,400 CPC International Inc.......... 5,830,350
63,700 General Mills, Inc............. 4,713,800
136,650 H J Heinz Co................... 6,841,041
47,000 Hershey Foods Corp............. 2,884,625
162,800 Kellogg Co..................... 7,549,850
20,960 Pioneer Hi-Bred International,
Inc. ......................... 2,140,540
57,400 Quaker Oats Co................. 3,042,200
41,200 Ralston Purina Co.............. 3,831,600
181,200 Sara Lee Corp.................. 9,580,950
42,500 Wm. Wrigley Jr. Co............. 3,362,813
------------
70,537,928
------------
FOOTWEAR - 0.15%
71,400 NIKE, Inc. Class B............ 3,476,287
18,900* Reebok International Ltd....... 743,006
------------
4,219,293
------------
FREIGHT - 0.14%
41,200* Federal Express Corp........... 2,762,975
37,200 Ryder System, Inc.............. 1,350,825
------------
4,113,800
------------
FUNERAL SERVICES - 0.10%
79,100 Service Corp. International.... 2,892,094
------------
GOLD MINING - 0.15%
151,700 Barrick Gold Corp.............. 2,512,531
52,100 Battle Mountain Gold Co........ 263,756
21,800* Echo Bay Mines Ltd............. 50,413
</TABLE>
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<PAGE> 8
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6 STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
GOLD MINING - Continued
53,900 Homestake Mining Co............ $ 565,950
88,900 Placer Dome Inc................ 1,089,025
------------
4,481,675
------------
GOVERNMENT SPONSORED - 1.13%
272,600 Federal Home Loan Mortgage
Corp.......................... 11,244,750
402,000 Federal National Mortgage
Association .................. 21,230,625
------------
32,475,375
------------
HARDWARE & TOOLS - 0.12%
31,300 Black & Decker Corp............ 1,150,275
11,550 Snap-on Inc.................... 507,478
42,600 Stanley Works.................. 1,877,063
------------
3,534,816
------------
HEALTHCARE - 0.46%
49,400 Cardinal Health, Inc........... 3,742,050
154,900* HealthSouth Corp............... 4,066,125
54,400* Humana Inc..................... 1,207,000
79,800 United HealthCare Corp......... 4,154,587
------------
13,169,762
------------
HEAVY DUTY TRUCKS/PARTS - 0.28%
19,700 Cummins Engine Co., Inc........ 1,268,187
27,100 Dana Corp...................... 1,266,925
31,300 Eaton Corp..................... 2,955,894
39,010* Navistar International Corp.... 858,220
32,710 PACCAR Inc..................... 1,799,050
------------
8,148,276
------------
HOME BUILDERS - 0.06%
16,600 Centex Corp.................... 1,052,025
14,456 Kaufman & Broad Home Corp...... 313,515
7,900 Pulte Corp..................... 320,444
------------
1,685,984
------------
HOSPITAL MANAGEMENT - 0.41%
8,000* Beverly Enterprises, Inc....... 136,000
249,584 Columbia/HCA Healthcare Corp... 7,362,728
13,000 Manor Care, Inc................ 458,250
13,100 Shared Medical Systems Corp.... 838,400
99,700* Tenet Healthcare Corp.......... 3,159,244
------------
11,954,622
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
HOSPITAL SUPPLIES - 2.68%
300,800 Abbott Laboratories............ $ 19,552,000
8,400 Bard (C. R.), Inc.............. 251,475
109,700 Baxter International Inc....... 5,553,562
55,200 Becton, Dickinson and Co....... 2,846,250
64,100 Biomet, Inc.................... 1,530,388
67,677* Boston Scientific Corp......... 3,058,154
511,200 Johnson & Johnson.............. 32,173,650
37,900 Mallinckrodt, Inc.............. 1,402,300
191,400 Medtronic, Inc................. 9,139,350
40,650* St. Jude Medical, Inc.......... 1,204,256
25,700 United States Surgical Corp.... 677,837
------------
77,389,222
------------
HOUSEHOLD PRODUCTS - 2.98%
43,200 Clorox Co...................... 3,353,400
118,800 Colgate-Palmolive Co........... 7,937,325
167,400 Minnesota Mining &
Manufacturing Co. ............ 16,311,038
59,000 Newell Co...................... 2,407,938
514,552 Procter & Gamble Co............ 39,266,750
63,100 Rubbermaid, Inc................ 1,530,175
35,300 Tupperware Corp................ 842,788
248,400 Unilever N V - ADR............. 14,422,725
------------
86,072,139
------------
INFORMATION PROCESSING - 9.69%
1* A.C. Nielson................... 22
38,200 Adobe Systems Inc.............. 1,604,400
61,400* Apple Computer, Inc............ 1,089,850
22,200 Autodesk, Inc.................. 853,312
122,600 Automatic Data Processing, Inc. 6,896,250
78,400* Bay Networks, Inc.............. 2,356,900
27,452* Ceridian Corp.................. 1,204,456
257,300* Cisco Systems, Inc............. 22,192,125
68,600 Cognizant Corp................. 2,941,225
292,395 Compaq Computer Corp........... 18,256,413
206,531 Computer Associates
International, Inc. .......... 10,752,494
24,700* Computer Sciences Corp......... 1,955,931
132,600* Dell Computer Corp............. 11,163,262
66,200* Digital Equipment Corp......... 3,260,350
189,200* E M C Corp..................... 5,735,125
180,354 First Data Corp................ 5,106,273
74,500 HBO & Co....................... 3,343,188
405,600 Hewlett Packard Co............. 24,766,950
55,100 Honeywell Inc.................. 3,609,050
377,800 International Business
Machines Corp. ............... 41,392,713
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
INFORMATION PROCESSING - Continued
463,200* Microsoft Corp................. $ 65,542,800
45,300* Nextlevel Systems Inc.......... 600,225
142,500* Novell, Inc ................... 1,318,125
381,587* Oracle Corp.................... 12,711,617
49,900* Parametric Technology Corp..... 2,523,069
52,800 Pitney Bowes Inc............... 4,438,500
96,300* Seagate Technology............. 2,184,806
58,100* Silicon Graphics, Inc.......... 762,562
155,800* Sun Microsystems, Inc.......... 5,608,800
125,300* 3Com Corp...................... 4,542,125
37,700* Unisys Corp.................... 539,581
128,800 Xerox Corp..................... 10,006,150
------------
279,258,649
------------
INSURANCE - CASUALTY - 0.44%
67,800 Chubb Corp..................... 4,809,562
27,500 Progressive Corp............... 2,805,000
58,000 SAFECO Corp.................... 2,834,750
24,300 St. Paul Companies, Inc........ 1,944,000
13,900 USF & G Corp................... 280,606
------------
12,673,918
------------
INSURANCE - LIFE - 0.71%
60,292 Aetna Inc...................... 4,544,509
95,900 Conseco Inc.................... 4,465,344
44,075 Jefferson-Pilot Corp........... 3,363,473
57,000 Lincoln National Corp.......... 4,068,375
40,400 Torchmark Corp................. 1,648,825
21,109 Transamerica Corp.............. 2,291,646
------------
20,382,172
------------
INSURANCE - MISCELLANEOUS - 0.53%
37,600 General Reinsurance Corp....... 7,463,600
31,600 MBIA, Inc...................... 1,986,850
43,600 MGIC Investment Corp........... 2,547,875
67,400 UNUM Corp...................... 3,197,288
------------
15,195,613
------------
INSURANCE - MULTILINE - 2.87%
167,320 Allstate Corp.................. 14,368,604
276,327 American International Group,
Inc. ......................... 27,857,216
49,500 Aon Corp....................... 2,620,406
34,700 CIGNA Corp..................... 5,803,575
55,200 Hartford Financial Services
Group ........................ 4,623,000
71,200 Marsh & McLennan Companies
Inc. ......................... 5,299,950
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 9
================================================================================
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 7
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
INSURANCE - MULTILINE - Continued
439,022 Travelers Group, Inc........... $ 22,170,586
------------
82,743,337
------------
LEISURE TIME - 0.08%
17,900 Brunswick Corp................. 598,531
68,400* Mirage Resorts, Inc............ 1,624,500
------------
2,223,031
------------
LODGING - 0.37%
58,600* HFS, Inc....................... 4,021,425
107,700 Hilton Hotels Corp............. 3,352,162
46,200 Marriott International, Inc.... 3,346,613
------------
10,720,200
------------
MACHINE TOOLS - 0.01%
4,700 Cincinnati Milacron, Inc....... 138,944
------------
MACHINERY - AGRICULTURE - 0.27%
35,000 Case Corp...................... 2,170,000
100,200 Deere & Co..................... 5,492,212
------------
7,662,212
------------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.31%
153,600 Caterpillar Inc................ 7,363,200
34,200 Fluor Corp..................... 1,229,062
2,600 Foster Wheeler Corp............ 80,112
10,800 Harnischfeger Industries Inc... 412,425
------------
9,084,799
------------
MACHINERY - INDUSTRIAL/
SPECIALTY - 0.61%
1,600 Aeroquip-Vickers, Inc.......... 81,700
14,600 Briggs & Stratton Corp......... 746,425
42,700 Cooper Industries, Inc......... 2,204,387
47,800 Dover Corp..................... 3,205,587
83,000 Illinois Tool Works Inc........ 4,549,437
49,800 Ingersoll-Rand Co.............. 2,035,575
32,000 Johnson Controls, Inc.......... 1,466,000
59,533 Pall Corp...................... 1,257,635
33,375 Parker Hannifin Corp........... 1,485,188
12,800 Timken Co...................... 453,600
------------
17,485,534
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
MEDICAL TECHNOLOGY - 0.14%
65,000 Guidant Corp................... $ 4,176,250
------------
MERCHANDISE - DRUG - 0.51%
74,600 CVS Corp....................... 4,951,575
16,600 Longs Drug Stores Corp......... 485,550
49,000 Rite Aid Corp.................. 3,221,750
191,400 Walgreen Co.................... 6,160,687
------------
14,819,562
------------
MERCHANDISE - SPECIALTY - 1.51%
41,000 American Greetings Corp.
Class A ...................... 1,506,750
29,500* Charming Shoppes, Inc.......... 144,736
27,100 Circuit City Stores, Inc....... 889,219
90,722* CostCo Companies, Inc.......... 4,020,119
74,400 Fortune Brands, Inc........... 2,692,350
109,800 Gap, Inc....................... 5,894,888
285,300 Home Depot, Inc................ 15,958,969
49,600 Ikon Office Solutions Inc...... 1,509,700
973 Jostens, Inc................... 23,352
98,498 Limited, Inc................... 2,370,108
34,000 Nordstrom, Inc................. 2,006,000
33,600 Tandy Corp..................... 1,444,800
48,900 TJX Companies, Inc............. 1,687,050
106,625* Toys "R" Us, Inc............... 3,638,578
------------
43,786,619
------------
MERCHANDISING - DEPARTMENT - 0.61%
93,100 Dayton Hudson Corp............. 6,185,331
30,800 Dillards, Inc. Class A......... 1,126,125
90,800* Federated Department Stores,
Inc. ......................... 4,137,075
94,300 May Department Stores Co....... 5,068,625
16,000 Mercantile Stores Co., Inc..... 1,034,000
------------
17,551,156
------------
MERCHANDISING - FOOD - 0.61%
108,100 Albertsons, Inc................ 4,796,937
119,200 American Stores Co............. 2,361,650
6,900 Fleming Companies, Inc......... 114,712
15,500 Giant Food Inc. Class A........ 523,125
15,300 Great Atlantic & Pacific Tea
Co., Inc. .................... 472,387
95,600* Kroger Co...................... 3,292,225
16,700 Supervalu Inc.................. 656,519
71,900 SYSCO Corp..................... 3,204,044
52,000 Winn-Dixie Stores, Inc......... 2,102,750
------------
17,524,349
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
MERCHANDISING - MASS - 1.93%
149,100 CUC International Inc.......... $ 4,286,625
107,000 J.C. Penney Co., Inc........... 6,874,750
190,300* KMart Corp..................... 2,390,644
147,200 Sears Roebuck and Co........... 6,743,600
864,000 Wal-Mart Stores, Inc........... 34,506,000
35,000* Woolworth Corp................. 756,875
------------
55,558,494
------------
METALS - ALUMINUM - 0.29%
76,500 Alcan Aluminium Ltd............ 2,060,719
66,600 Aluminum Co. of America........ 4,478,850
33,100 Reynolds Metals Co............. 1,884,631
------------
8,424,200
------------
METALS - COPPER - 0.15%
19,300 ASARCO Inc..................... 480,087
67,631 Newmont Mining Corp............ 2,033,157
27,200 Phelps Dodge Corp.............. 1,802,000
------------
4,315,244
------------
METALS - MISCELLANEOUS - 0.12%
31,350 Cyprus Amax Minerals Co........ 574,097
57,075 Engelhard Corp................. 1,016,648
47,000 Freeport-McMoRan Copper &
Gold Inc. Class B............. 984,062
52,400 Inco Limited................... 998,875
------------
3,573,682
------------
METALS - STEEL - 0.21%
59,525 Allegheny Teldyne Inc.......... 1,532,769
22,300* Armco Inc...................... 118,469
21,900* Bethlehem Steel Corp........... 224,475
20,200 Inland Steel Industries, Inc... 386,325
31,100 Nucor Corp..................... 1,555,000
43,420 USX-US Steel Group, Inc........ 1,359,589
53,625 Worthington Industries, Inc.... 971,953
------------
6,148,580
------------
MISCELLANEOUS - 0.07%
57,800 Equifax Inc.................... 1,972,425
------------
MOBILE HOMES - 0.02%
14,600 Fleetwood Enterprises, Inc..... 521,037
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 10
================================================================================
8 STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
NATURAL GAS - DIVERSIFIED - 0.13%
43,900 Coastal Corp................... $ 2,570,894
26,600 Sonat Inc...................... 1,158,763
------------
3,729,657
------------
OIL - INTEGRATED DOMESTIC - 1.90%
35,700 Amerada Hess Corp.............. 1,999,200
187,900 Amoco Corp..................... 16,911,000
26,900 Ashland Oil, Inc............... 1,255,894
125,800 Atlantic Richfield Co.......... 10,252,700
62,467 Burlington Resources, Inc...... 2,779,781
19,400 Kerr-McGee Corp................ 1,286,463
117,700 Occidental Petroleum Corp...... 3,494,219
40,800* Oryx Energy Co................. 1,101,600
18,500 Pennzoil Co.................... 1,232,562
96,300 Phillips Petroleum Co.......... 4,664,531
40,916 Sun Co., Inc................... 1,654,541
105,400 Unocal Corp.................... 4,196,238
114,000 USX-Marathon Group............. 3,904,500
------------
54,733,229
------------
OIL - INTEGRATED INTERNATIONAL - 5.40%
254,600 Chevron Corp................... 20,415,737
943,800 Exxon Corp..................... 57,571,800
304,600 Mobil Corp..................... 21,912,163
824,100 Royal Dutch Petroleum Co. -
ADR .......................... 43,419,769
219,200 Texaco Inc..................... 12,384,800
------------
155,704,269
------------
OIL - SERVICES - 1.08%
58,800 Baker Hughes Inc............... 2,462,250
70,900 Dresser Industries, Inc........ 2,649,887
107,800 Halliburton Co................. 5,814,463
34,300 McDermott International, Inc... 1,080,450
25,500* Rowan Companies, Inc........... 867,000
193,400 Schlumberger Ltd............... 15,919,237
26,800* Unova Inc...................... 452,250
26,800* Western Atlas Inc.............. 1,864,275
------------
31,109,812
------------
OIL/GAS PRODUCERS - 0.21%
25,300 Anadarko Petroleum Corp........ 1,644,500
33,700 Apache Corp.................... 1,238,475
3,000 Helmerich & Payne, Inc......... 228,188
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
OIL/GAS PRODUCERS - Continued
113,842 Union Pacific Resources
Group Inc. ................... $ 2,831,820
------------
5,942,983
------------
PAPER/FOREST PRODUCTS - 1.36%
48,200 Avery Dennison Corp............ 2,018,375
8,366 Boise Cascade Corp............. 281,830
45,400 Champion International Corp.... 2,431,737
69,700 Fort James Corp................ 2,727,013
39,200 Georgia-Pacific Corp........... 3,346,700
114,918 International Paper Co......... 5,451,423
228,432 Kimberly-Clark Corp............ 11,892,741
41,600 Louisiana Pacific Corp......... 839,800
19,300 Mead Corp...................... 1,246,056
4,900 Potlatch Corp.................. 238,263
57,364* Stone Container Corp........... 717,050
35,450 Union Camp Corp................ 2,129,216
26,850 Westvaco Corp.................. 875,981
74,300 Weyerhaeuser Co................ 3,923,969
35,000 Willamette Industries, Inc..... 1,229,375
------------
39,349,529
------------
PHOTOGRAPHY - 0.29%
123,850 Eastman Kodak Co............... 7,508,406
18,100 Polaroid Corp.................. 769,250
------------
8,277,656
------------
POLLUTION CONTROL - 0.32%
82,500 Browning-Ferris Industries Inc. 2,944,219
97,400 Laidlaw Inc.................... 1,266,200
50 Safety-Kleen Corp.............. 1,388
198,000 Waste Management, Inc.......... 4,875,750
------------
9,087,557
------------
PUBLISHING - NEWS - 0.56%
35,100 Dow Jones & Co., Inc........... 1,774,744
107,800 Gannett Co., Inc............... 6,259,138
42,400 Knight-Ridder, Inc............. 2,125,300
24,800 New York Times Co. Class A.... 1,472,500
39,732 Times Mirror Co................ 2,359,088
36,300 Tribune Co..................... 2,046,413
------------
16,037,183
------------
PUBLISHING/PRINTING - 0.33%
50,800 Deluxe Corp.................... 1,793,875
64,500 Dun & Bradstreet Corp.......... 1,806,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
PUBLISHING/PRINTING - Continued
19,217 Harcourt General, Inc.......... $ 1,052,131
30,100 McGraw-Hill, Inc............... 2,059,969
21,600 Moore Corp. Ltd................ 336,150
71,800 RR Donnelley & Sons Co......... 2,530,950
------------
9,579,075
------------
RAILROAD - 0.72%
60,417 Burlington Northern Santa Fe... 5,528,155
73,600 CSX Corp....................... 3,850,200
167,000 Norfolk Southern Corp.......... 5,312,688
103,600 Union Pacific Corp............. 6,216,000
------------
20,907,043
------------
RESTAURANTS - 0.58%
55,800 Darden Restaurants, Inc........ 662,625
280,000 McDonald's Corp................ 13,580,000
57,120* Tricon Global Restaurants,
Inc.......................... 1,931,370
30,000 Wendy's International, Inc..... 630,000
------------
16,803,995
------------
SAVINGS & LOAN - 0.37%
25,100 Golden West Financial Corp..... 2,249,588
24,900 H.F. Ahmanson & Co............. 1,481,550
102,325 Washington Mutual, Inc......... 7,073,216
------------
10,804,354
------------
SECURITIES RELATED - 0.89%
97,650 Charles Schwab Corp............ 3,765,628
127,400 Merrill Lynch & Co., Inc....... 8,941,888
237,001 Morgan Stanley, Dean Witter,
Discover and Co............... 12,872,118
------------
25,579,634
------------
SEMICONDUCTOR EQUIPMENT - 0.22%
151,200* Applied Materials, Inc......... 4,989,600
36,600* KLA-Tencor Corp................ 1,418,250
------------
6,407,850
------------
SEMICONDUCTORS - 2.82%
57,700* Advanced Micro Devices, Inc.... 1,258,581
629,400 Intel Corp..................... 48,857,175
55,500* LSI Logic Corp................. 1,290,375
93,300* Micron Technology, Inc......... 2,320,838
225,200 Motorola, Inc.................. 14,159,450
51,000* National Semiconductor Corp.... 1,689,375
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 11
================================================================================
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 9
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
SEMICONDUCTORS - Continued
95,400 Rockwell International Corp.... $ 4,650,750
145,600 Texas Instruments Inc.......... 7,170,800
------------
81,397,344
------------
TELECOMMUNICATIONS - 2.09%
210,200* Airtouch Communications, Inc... 8,250,350
56,300 ALLTEL Corp.................... 2,237,925
32,335* Andrew Corp.................... 856,877
57,000* DSC Communications Corp........ 1,286,062
47,300 Frontier Corp.................. 1,158,850
43,800 Harris Corp.................... 2,077,762
247,390 Lucent Technologies, Inc....... 19,822,124
95,000 Northern Telecom Ltd........... 8,532,187
29,500 Scientific-Atlanta, Inc........ 590,000
76,900* Tellabs, Inc................... 3,998,800
358,100* WorldCom, Inc.................. 11,459,200
------------
60,270,137
------------
TEXTILE - PRODUCTS - 0.11%
26,100 Russell Corp................... 797,681
48,800 V F Corp....................... 2,253,950
------------
3,051,631
------------
TOBACCO - 1.50%
932,700 Philip Morris Cos Inc.......... 40,572,450
85,600 UST Inc........................ 2,642,900
------------
43,215,350
------------
TRUCKERS - 0.03%
14,200 Caliber System, Inc............ 758,812
------------
UTILITIES - COMMUNICATION - 5.65%
218,300 Ameritech Corp................. 16,822,744
626,026 AT & T Corp.................... 34,979,203
293,705 Bell Atlantic Corp............. 26,213,171
368,700 BellSouth Corp................. 20,186,325
355,200 GTE Corp....................... 17,959,800
278,400 MCI Communications Corp........ 12,232,200
363,379 SBC Communications, Inc........ 26,458,533
137,600 Sprint Corp.................... 8,058,200
------------
162,910,176
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
UTILITIES - ELECTRIC - 2.58%
58,900 American Electric Power, Inc... $ 2,919,231
35,200 Baltimore Gas and Electric Co.. 1,080,200
60,100 Carolina Power & Light Co...... 2,246,237
105,700 Central & South West Corp...... 2,642,500
41,164 Cinergy Corp................... 1,466,467
114,200 Consolidated Edison Co.
of New York, Inc.............. 4,311,050
57,650 Dominion Resources, Inc........ 2,241,144
42,300 DTE Energy Co.................. 1,387,969
154,451 Duke Energy Corp............... 8,031,452
170,200 Edison International........... 4,563,488
110,500 Entergy Corp................... 2,873,000
55,200* FirstEnergy Corp............... 1,490,400
87,100 FPL Group, Inc................. 4,872,156
32,600 GPU Inc........................ 1,287,700
168,979 Houston Industries, Inc........ 4,002,690
37,500* Niagara Mohawk Power Corp...... 358,594
26,000 Northern States Power Co....... 1,426,750
161,400 P G & E Corp................... 4,559,550
44,500 P P & L Resources Inc.......... 1,045,750
83,900 PacifiCorp..................... 1,955,919
109,300 Peco Energy Co................. 2,657,356
112,550 Public Service Enterprise
Group......................... 3,285,053
254,700 Southern Co.................... 6,112,800
102,920 Texas Utilities Co............. 4,116,800
81,400 Unicom Corp.................... 2,370,775
28,800 Union Electric Co.............. 1,146,600
-------------
74,451,631
-------------
UTILITIES - GAS, DISTRIBUTION -0.03%
23,700 NICOR Inc...................... 953,925
-------------
UTILITIES - GAS, PIPELINE - 0.49%
22,000 Columbia Gas System, Inc....... 1,600,500
44,100 Consolidated Natural Gas Co.... 2,662,538
130,900 Enron Corp..................... 5,072,375
18,300 ONEOK Inc...................... 683,963
15,000 Pacific Enterprises............ 530,625
2,200 Peoples Energy Corp............ 80,575
66,750 Williams Companies, Inc........ 3,566,953
-------------
14,197,529
-------------
TOTAL COMMON STOCKS
(Cost $1,482,841,966)......... 2,860,992,342
-------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 0.62%
ENTERTAINMENT - 0.08%
$2,323,000 Walt Disney Co.,
5.50% due 12/1/97............. $ 2,323,000
--------------
FINANCE COMPANIES - 0.54%
8,052,000 General Motors Acceptance Corp.,
5.70% due 12/3/97............. 8,049,450
771,000 Ford Motor Credit Co.,
5.54% due 12/1/97............. 771,000
6,601,000 Ford Motor Credit Europe,
5.66% due 12/2/97............. 6,599,962
--------------
15,420,412
--------------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $17,743,412)............. 17,743,412
--------------
UNITED STATES GOVERNMENT -
SHORT TERM - 0.04%
U.S. TREASURY BILLS - 0.04%
United States Treasury Bills:
100,000 4.90% due 12/11/97............ 99,864
100,000 4.88% due 12/11/97............ 99,864
200,000 4.84% due 12/11/97............ 199,731
700,000 4.67% due 12/11/97............ 699,092
100,000 4.50% due 12/11/97............ 99,875
--------------
1,198,426
--------------
TOTAL UNITED STATES GOVERNMENT
SHORT TERM
(Cost $1,198,426).............. 1,198,426
--------------
TOTAL INVESTMENTS
(Cost $1,501,783,804) -
99.85%...................... 2,879,934,180
Other assets and liabilities,
net - 0.15%................... 4,397,673
--------------
NET ASSETS (equivalent
to $29.38 per share on
98,157,662 shares
outstanding) - 100%......... $2,884,331,853
==============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 12
================================================================================
10 STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
- ---------------------------------------------------------------------
<S> <C> <C> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/97)
65(2) S&P 500 Index Futures
(December/$954.90)............ $ 234,003
============
(1)U.S. Treasury Bills with a market value of
approximately $1,200,000 were maintained
in a segregated account with a portion
placed as collateral for futures contracts.
(2)Per 250
- ---------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
98,157,662 shares outstanding.......... $ 981,577
Additional paid in capital............... 1,483,836,397
Undistributed net realized gain on
securities ............................. 20,292,781
Undistributed net investment income...... 836,719
Unrealized appreciation of:
Investments........... $1,378,150,376
Futures .............. 234,003 1,378,384,379
-------------- --------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................ $2,884,331,853
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 13
================================================================================
STOCK INDEX FUND FINANCIAL STATEMENTS (Unaudited) 11
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................ $ 22,659,823
Interest............................................................. 618,587
------------
Total investment income............................................ 23,278,410
------------
EXPENSES:
Advisory fees........................................................ 3,672,651
Custodian and accounting services.................................... 341,175
Reports to shareholders.............................................. 177,190
Audit fees and tax services.......................................... 38,616
Directors' fees and expenses......................................... 31,843
Miscellaneous........................................................ 53,333
------------
Total expenses..................................................... 4,314,808
------------
NET INVESTMENT INCOME................................................ 18,963,602
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on:
Investments.......................................... $ 4,129,121
Futures contracts.................................... 2,843,207 6,972,328
----------- -----------
Net unrealized appreciation (depreciation) of securities
during the period:
Investments ......................................... 305,999,326
Futures contracts.................................... (89,497) 305,909,829
----------- ------------
Net realized and unrealized gain on securities during the period......... 312,882,157
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................ $331,845,759
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
------------------ -----------------
<S> <C> <C>
OPERATIONS:
Net investment income .................................... $ 18,963,602 $ 35,492,537
Net realized gain on securities .......................... 6,972,328 14,778,898
Net unrealized appreciation of securities during
the period ............................................. 305,909,829 489,128,221
--------------- ---------------
Increase in net assets resulting from operations ....... 331,845,759 539,399,656
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .................................... (18,507,454) (35,484,625)
Net realized gain on securities .......................... -- (14,806,928)
--------------- ---------------
Decrease in net assets resulting from distributions
to shareholders ....................................... (18,507,454) (50,291,553)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ......................... 160,068,892 241,746,270
Proceeds from capital stock issued for distributions
reinvested ............................................. 18,507,454 50,291,553
--------------- ---------------
178,576,346 292,037,823
Cost of capital stock repurchased ........................ (51,782,323) (97,732,690)
--------------- ---------------
Increase in net assets resulting from capital stock
transactions .......................................... 126,794,023 194,305,133
--------------- ---------------
TOTAL INCREASE IN NET ASSETS ............................. 440,132,328 683,413,236
NET ASSETS:
Beginning of period ...................................... 2,444,199,525 1,760,786,289
--------------- ---------------
End of period (including undistributed net
investment income of $836,719 and $380,571) .............. $ 2,884,331,853 $ 2,444,199,525
=============== ===============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ............................. 5,617,557 10,718,393
Shares issued for distributions reinvested ............... 650,832 2,200,590
Shares of capital stock repurchased ...................... (1,798,162) (4,348,853)
--------------- ---------------
Increase in shares outstanding ......................... 4,470,227 8,570,130
Shares outstanding:
Beginning of period .................................... 93,687,435 85,117,305
--------------- ---------------
End of period .......................................... 98,157,662 93,687,435
=============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 14
================================================================================
12 MIDCAP INDEX FUND - STATEMENT OF NET ASSETS
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 98.84%
ADVERTISING - 0.68%
64,264 Omnicom Group, Inc............. $ 4,763,569
------------
AEROSPACE/DEFENSE - 1.25%
29,180 Gencorp Inc.................... 731,324
20,355* Rohr, Inc...................... 623,372
48,000* SCI Systems, Inc............... 2,199,000
7,500* Sequa Corp. Class A............ 429,375
48,074 Sunstrand Corp................. 2,466,797
29,420 Teleflex Inc................... 1,125,315
14,861 Thiokol Corp................... 1,227,890
------------
8,803,073
------------
AIRLINES - 0.16%
11,721* Alaska Air Group, Inc.......... 438,072
23,974 ASA Holdings, Inc.............. 710,230
------------
1,148,302
------------
APPAREL & PRODUCTS - 0.91%
20,600* Ann Taylor Stores Corp......... 293,550
77,306 Cintas Corp.................... 3,005,271
39,271 Claire's Stores, Inc........... 888,506
27,324* Land's End, Inc................ 964,879
41,800 Warnaco Group Inc. Class A..... 1,227,875
------------
6,380,081
------------
APPLIANCES/FURNISHINGS - 0.99%
39,859 Heilig-Meyers Co............... 515,676
39,428 Herman Miller, Inc............. 2,000,971
25,201 Lancaster Colony Corp.......... 1,260,051
73,976 Leggett & Platt, Inc........... 3,180,968
------------
6,957,666
------------
AUTO - CARS - 0.64%
121,940 Harley-Davidson, Inc........... 3,223,789
57,000 Meritor Automotive, Inc........ 1,275,375
------------
4,499,164
------------
AUTO - ORIGINAL EQUIPMENT - 1.30%
19,725 Arvin Industries, Inc.......... 680,512
22,900 Carlisle Cos Inc............... 973,250
46,942 Danaher Corp................... 2,757,843
19,418 Donaldson Co., Inc............. 932,064
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ---------------------------------------------------------------
<S> <C> <C>
AUTO - ORIGINAL EQUIPMENT - Continued
28,470 Federal-Mogul Corp............. $ 1,170,829
50,245 Mark IV Industries, Inc........ 1,136,793
24,928 Modine Manufacturing Co........ 845,994
23,200 Superior Industries
International, Inc............ 603,200
------------
9,100,485
------------
AUTO - REPLACEMENT PARTS - 0.15 %
31,642 Kaydon Corp.................... 1,042,208
------------
BANKS - OTHER - 1.55%
51,802 First Tennessee National Corp.. 3,078,981
116,100 Firstar Corp................... 4,527,900
53,100 Union Planters Corp............ 3,278,925
------------
10,885,806
------------
BANKS - REGIONAL - 8.36%
40,000 Associated Banc-Corp........... 1,990,000
50,828 Central Fidelity Banks, Inc.... 2,449,274
37,555 City National Corp............. 1,220,537
88,972 Crestar Financial Corp......... 4,570,936
70,764 First of America Bank Corp..... 4,157,385
91,141 First Security Corp............ 3,087,401
39,862 First Virginia Banks, Inc...... 1,905,902
99,600 Hibernia Corp. Class A......... 1,805,250
71,148 Marshall & Ilsley Corp......... 3,779,738
100,201 Mercantile Bancorporation Inc.. 5,210,452
57,534 Mercantile Bankshares Corp..... 1,948,964
89,706 Northern Trust Corp............ 5,584,199
38,200 Old Kent Financial Corp........ 2,583,275
32,234 Pacific Century Financial
Corp. ........................ 1,643,934
106,518 Regions Financial Corp......... 4,114,258
80,087 SouthTrust Corp................ 4,364,742
140,854 Summit Bancorporation.......... 6,567,318
28,678 Wilmington Trust Corp.......... 1,674,078
------------
58,657,643
------------
BEVERAGE - SOFT DRINKS - 1.37%
313,109 Coca-Cola Enterprises, Inc..... 9,569,394
------------
BROADCASTING - 0.67%
50,228 A.H. Belo Corp................. 2,476,868
25,430* Chris-Craft Industries, Inc.... 1,274,679
22,416 TCA Cable TV, Inc. ............ 930,264
------------
4,681,811
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
BUILDING MATERIALS - 1.43%
18,366 CalMat Co...................... $ 480,960
33,100 Fastenal Co.................... 1,754,300
24,525 HON INDUSTRIES Inc............. 1,321,284
37,000 Martin Marietta Materials...... 1,281,125
63,565 RPM, Inc....................... 1,271,300
17,900 Southdown, Inc................. 1,032,606
28,200 Vulcan Materials Co............ 2,867,588
------------
10,009,163
------------
CHEMICAL - MAJOR - 0.59%
44,425 Albemarle Corp................. 1,107,848
18,700 Borg-Warner Automotive, Inc.... 881,238
95,100 Solutia Inc.................... 2,169,469
------------
4,158,555
------------
CHEMICAL - MISCELLANEOUS - 2.61%
29,173 A. Schulman, Inc............... 652,746
53,200* Airgas, Inc.................... 744,800
24,680 Betz Laboratories, Inc......... 1,502,395
64,637 Crompton & Knowles Corp........ 1,712,880
36,000* Cytec Industries, Inc.......... 1,647,000
19,368 Dexter Corp.................... 771,088
49,000 Ethyl Corp..................... 437,938
21,047 Ferro Corp..................... 806,363
26,833 Georgia Gulf Corp.............. 833,500
11,264 H.B. Fuller Co................. 551,936
42,336 M.A. Hanna Co.................. 1,045,170
37,193 Lawter International, Inc...... 427,720
46,319 Lubrizol Corp.................. 1,806,441
64,278 Lyondell Petrochemical Co...... 1,635,072
18,100 Minerals Technologies Inc...... 791,875
5,955 NCH Corp....................... 406,057
40,242 Olin Corp...................... 1,991,979
28,425 Rollins, Inc................... 579,159
------------
18,344,119
------------
CONGLOMERATES - 1.04%
39,698 Alexander & Baldwin, Inc....... 1,071,846
77,200 Dial Corp...................... 1,495,750
37,000* Litton Industries, Inc......... 1,863,875
6,200* MAXXAM, Inc.................... 288,688
40,200 Ogden Corp..................... 1,070,325
78,400 Viad Corp...................... 1,494,500
------------
7,284,984
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 15
================================================================================
MIDCAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 13
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
CONSUMER FINANCE - 0.43%
67,200 Capital One Financial Corp..... $ 3,045,000
------------
CONTAINERS - PAPER - 0.71%
18,914 Chesapeake Corp................ 647,805
34,222* Sealed Air Corp................ 1,946,376
72,736 Sonoco Products Co............. 2,386,650
------------
4,980,831
------------
DRUGS - 3.37%
40,980 Bergen Brunswig Corp. Class A.. 1,759,579
58,652* Biogen, Inc.................... 2,052,820
37,246 Carter-Wallace Inc............. 616,887
56,088* Centocor, Inc.................. 2,439,828
137,580* Chiron Corp.................... 2,502,236
47,025* Covance Inc.................... 852,328
32,841* Forest Laboratories, Inc....... 1,469,635
61,442* Genzyme Corp................... 1,647,414
97,636* IVAX Corp...................... 689,554
36,200 McKesson Corp.................. 4,049,875
98,034 Mylan Laboratories Inc......... 2,175,129
19,100* R.P. Scherer Corp.............. 1,171,069
73,400* Watson Pharmaceuticals, Inc.... 2,183,650
------------
23,610,004
------------
ELECTRICAL EQUIPMENT - 1.86%
76,386* American Power Conversion...... 2,320,225
29,031 AMETEK, Inc.................... 689,486
53,970 Hubbell Inc. Class B........... 2,452,262
100,766 Molex Inc...................... 3,835,406
69,046* Teradyne, Inc.................. 2,265,572
36,800* UCAR International, Inc........ 1,469,700
------------
13,032,651
------------
ELECTRONIC INSTRUMENTS - 1.46%
78,752* Arrow Electronics, Inc......... 2,411,781
17,966* Exabyte Corp................... 175,168
32,750* Imation Corp................... 571,078
63,000* Integrated Device Technology,
Inc. ......................... 641,812
25,521* MagnaTek, Inc.................. 532,751
33,800 Pittston Brink's Group......... 1,237,925
59,579* Sensormatic Electronics Corp... 968,159
31,609 Symbol Technologies, Inc....... 1,234,727
24,316 Varian Associates, Inc......... 1,404,249
51,727* Vishay Intertechnology, Inc.... 1,095,966
------------
10,273,616
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
ENTERTAINMENT - 0.16%
33,800* GTECH Holdings Corp............ $ 1,087,938
------------
FERTILIZERS - 0.34%
75,546 IMC Global, Inc................ 2,379,699
------------
FINANCE COMPANIES - 0.30%
44,600 Finova Group, Inc.............. 2,101,775
------------
FOODS - 3.00%
35,982 Dean Foods Co.................. 1,911,544
48,109 Dole Food Co., Inc............. 2,375,382
27,036 Dreyer's Grand Ice Cream, Inc.. 655,623
80,204 Flowers Industries, Inc........ 1,599,067
63,000 Hormel Foods Corp.............. 1,921,500
74,000 IBP, Inc....................... 1,688,125
14,612 International Multifoods Corp.. 392,697
59,600 Interstate Bakeries Corp....... 2,059,925
22,871 J.M. Smucker Co. Class A....... 566,057
24,771 Lance, Inc..................... 630,112
60,478 McCormick & Co., Inc........... 1,602,667
34,621 Trinity Industries, Inc........ 1,570,928
173,086 Tyson Foods, Inc. Class A...... 3,137,184
22,129 Universal Foods Corp........... 918,354
------------
21,029,165
------------
FOOTWEAR - 0.38%
28,800* Nine West Group, Inc........... 783,000
30,100* Payless ShoeSource, Inc........ 1,911,350
------------
2,694,350
------------
FREIGHT - 0.34%
17,373 Airborne Freight Corp.......... 1,106,443
31,300 J.B. Hunt Transport Services,
Inc. ......................... 508,625
30,271 Overseas Shipholding Group
Inc........................... 739,748
------------
2,354,816
------------
FUNERAL SERVICES - 0.23%
37,800 Stewart Enterprises Inc........ 1,641,938
------------
HARDWARE & TOOLS - 0.04%
9,555 Lawson Products, Inc........... 289,039
------------
HEALTHCARE - 2.75%
45,000 Allegiance Corp................ 1,425,937
41,300* Apria Healthcare Group, Inc.... 650,475
97,449 Foundation Health Systems
Class A ...................... 2,734,663
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
HEALTHCARE - Continued
131,600 Health Management Assoc........ $ 3,224,200
26,486* Healthcare COMPARE Corp........ 1,380,583
35,506 HealthSouth Corp............... 932,032
103,464 Laboratory Corp. of America
Holdings ..................... 213,395
49,391* NovaCare, Inc.................. 611,214
63,000 Omnicare, Inc.................. 1,819,125
65,000* Oxford Health Plans, Inc....... 1,551,875
32,874* PacifiCare Health System,
Inc. Class B ................. 1,766,978
53,500* Quorum Health Group Inc........ 1,284,000
39,000* Sybron International Corp...... 1,716,000
------------
19,310,477
------------
HEAVY DUTY TRUCKS/PARTS - 0.12%
37,404 Federal Signal Corp............ 813,537
------------
HOME BUILDERS - 0.22%
95,125 Clayton Homes, Inc............. 1,563,617
------------
HOSPITAL MANAGEMENT - 0.60%
32,800* Concentra Managed Care, Inc.... 1,111,100
36,900* Health Care & Retirement Corp.. 1,452,938
58,600* Medaphis Corp.................. 293,000
55,700* Vencor, Inc.................... 1,350,725
------------
4,207,763
------------
HOSPITAL SUPPLIES - 1.31%
26,335* Acuson Corp.................... 502,011
11,410* ATL Ultrasound, Inc............ 490,630
22,733 Beckman Instruments, Inc....... 889,429
13,068* Datascope Corp................. 334,051
43,400 DENTSPLY International Inc..... 1,177,225
10,809 Diagnostic Products Corp....... 299,950
55,200 Hillenbrand Industries, Inc.... 2,459,850
77,082 Stryker Corp................... 3,035,103
------------
9,188,249
------------
HOUSEHOLD PRODUCTS - 0.69%
55,100* Bed Bath & Beyond, Inc......... 1,838,962
16,014 Church & Dwight Co., Inc....... 470,411
32,446 First Brands Corp.............. 833,457
50,200 Premark International Inc...... 1,311,475
15,764 Stanhome Inc................... 405,923
------------
4,860,228
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 16
================================================================================
14 MIDCAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------------------------------------------------------------
<S> <C> <C>
HUMAN RESOURCES - 0.98%
30,603 Kelly Services Inc. Class A.... $ 883,662
65,800 Manpower Inc................... 2,212,525
63,950 Olsten Corp.................... 951,256
72,600* Robert Half International, Inc. 2,835,937
------------
6,883,380
------------
INFORMATION PROCESSING - 7.68%
46,373* A.C. Nielson................... 1,040,494
80,100* America Online, Inc............ 6,047,550
81,604* BMC Software, Inc.............. 5,294,060
59,458 Comdisco, Inc.................. 1,739,147
143,000* Compuware Corp................. 4,996,063
58,051 Diebold, Inc................... 2,681,231
43,700* Electronic Arts................ 1,463,950
41,264* Fiserv, Inc.................... 2,001,304
22,768* Information Resources, Inc..... 338,674
121,800* Informix Corp.................. 806,925
56,800* Lexmark Intl Group, Inc........ 1,810,500
52,107* Mentor Graphics Corp........... 495,017
82,173* NCR Corp....................... 2,424,104
19,071 OEA, Inc....................... 593,585
89,357 Paychex, Inc................... 3,663,638
14,618* Policy Management Systems Corp. 944,688
105,292* Quantum Corp................... 2,803,400
63,608 Reynolds and Reynolds Co.
Class A ...................... 1,216,503
30,725* Sequent Computer Systems, Inc.. 714,356
88,200* Solectron Corp................. 3,213,788
71,452* Sterling Commerce Inc.......... 2,482,957
49,490* Storage Technology Corp........ 3,195,198
18,525* Stratus Computer, Inc.......... 603,220
26,573* Structural Dynamic Research
Corp. ....................... 443,437
68,600* SunGard Data Systems, Inc...... 1,775,025
44,712* Symantec Corp.................. 1,117,800
------------
53,906,614
------------
INSURANCE - CASUALTY - 0.52%
47,333 American Financial Group, Inc.. 1,718,780
27,027 Transatlantic Holdings, Inc.... 1,930,741
------------
3,649,521
------------
INSURANCE - MISCELLANEOUS - 0.69%
56,100 AMBAC Financial Group Inc...... 2,251,012
16,466 HSB Group Inc.................. 855,203
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ---------------------------------------------------------------
<S> <C> <C>
INSURANCE - MISCELLANEOUS - Continued
26,700 PMI Group Inc.................. $ 1,735,500
------------
4,841,715
------------
INSURANCE - MULTILINE - 1.59%
110,025 AFLAC Inc...................... 5,074,903
69,800 Old Republic International
Corp. ....................... 2,517,162
108,172 Provident Companies Inc........ 3,549,394
------------
11,141,459
------------
LEISURE TIME - 0.82%
59,300 Callaway Golf Co............... 1,890,188
76,325* Circus Circus Enterprises...... 1,574,203
92,802 International Game Technology.. 2,320,050
------------
5,784,441
------------
LODGING - 0.25%
41,900* Promus Hotel Corp.............. 1,738,850
------------
MACHINERY - AGRICULTURE - 0.20%
50,200 AGCO Corp...................... 1,374,225
------------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.13%
15,171 Granite Construction, Inc...... 347,036
21,268* Jacobs Engineering Group, Inc.. 562,273
------------
909,309
------------
MACHINERY - INDUSTRIAL/
SPECIALTY - 1.07%
24,573 Albany International Corp.
Class A ...................... 597,431
28,418 Flowserve Corp................. 763,734
27,800 Newport News Shipbuilding...... 674,150
14,414 Nordson Corp................... 756,735
26,633 Stewart & Stevenson Services,
Inc. ......................... 579,268
17,600 Tecumseh Products Co. Class A.. 866,800
48,492 Tidewater, Inc................. 2,718,583
21,724 Watts Industries, Inc.
Class A ...................... 552,604
------------
7,509,305
------------
MERCHANDISE - DRUG - 0.13%
62,900* Perrigo Co..................... 896,325
------------
MERCHANDISE - SPECIALTY - 5.16%
53,500* Barnes & Noble, Inc............ 1,655,156
34,900* Best Buy Co., Inc.............. 1,016,463
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ---------------------------------------------------------------
<S> <C> <C>
MERCHANDISE - SPECIALTY - Continued
26,686* BJ's Wholesale Club Inc........ $ 777,230
73,300* CompUSA, Inc................... 2,680,031
67,343* Consolidated Stores Corp....... 3,274,553
96,152 Dollar General Corp............ 3,617,719
37,100 Fingerhut Companies, Inc....... 769,825
65,300* General Nutrition Cos., Inc.... 2,228,363
13,171* Gibson Greetings, Inc.......... 307,872
60,500* Kohl's Corp.................... 4,378,688
23,821* Mac Frugal's Bargains Close-
outs, Inc. ................... 1,021,325
27,700* Micro Warehouse, Inc........... 401,650
126,737* Office Depot, Inc.............. 2,994,162
99,500* OfficeMax, Inc................. 1,399,219
45,311 Sotheby's Holdings, Inc.
Class A ...................... 773,119
130,750* Staples, Inc................... 3,685,516
28,036 Tiffany & Co................... 1,068,872
54,316 Unisource Worldwide, Inc....... 852,082
88,200* US Office Products, Co......... 1,752,975
67,300* Viking Office Products, Inc.... 1,560,518
------------
36,215,338
------------
MERCHANDISING - FOOD - 0.30%
34,700 Hannaford Bros. Co............. 1,394,506
36,200 Ruddick Corp................... 737,575
------------
2,132,081
------------
MERCHANDISING MASS - 0.65%
75,660 Family Dollar Stores, Inc...... 2,094,836
64,800* Fred Meyer, Inc................ 2,195,100
81,724* Service Merchandise Co., Inc... 275,819
------------
4,565,755
------------
METALS - ALUMINUM - 0.20%
44,167 Alumax Inc..................... 1,388,500
------------
METALS - MISCELLANEOUS - 0.37%
13,600 Brush Wellman Inc.............. 323,000
21,006 Kennametal, Inc................ 1,106,754
19,350 Precision Castparts Corp....... 1,148,906
------------
2,578,660
------------
METALS - STEEL - 0.59%
37,600 AK Steel Holding Corp.......... 740,250
15,710 Carpenter Technology Corp...... 740,334
9,157 Cleveland-Cliffs Inc........... 394,895
39,742 Harsco Corp.................... 1,574,777
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 17
================================================================================
MIDCAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 15
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
METALS - STEEL - Continued
15,516 Lukens Inc..................... $ 259,893
21,123 Oregon Steel Mills, Inc........ 414,539
------------
4,124,688
------------
MISCELLANEOUS - 0.31%
63,000* Corrections Corp. of America... 2,181,375
------------
MULTIMEDIA - 0.57%
158,956* Cadence Design Systems, Inc.... 4,013,639
------------
NATURAL GAS - DIVERSIFIED - 0.77%
47,400 El Paso Natural Gas Co......... 2,909,175
33,343 Questar Corp................... 1,306,629
50,732* Seagull Energy Corp............ 1,157,324
------------
5,373,128
------------
OIL - INTEGRATED DOMESTIC - 0.33%
43,560 MAPCO Inc...................... 1,878,525
29,614 Quaker State Corp.............. 455,315
------------
2,333,840
------------
OIL - INTEGRATED INTERNATIONAL - 0.28%
36,046 Murphy Oil Corp................ 1,982,530
------------
OIL - SERVICE - PRODUCTS - 1.34%
30,921* BJ Services Co................. 2,220,514
105,700* Noble Drilling Corp............ 3,177,606
61,125* Parker Drilling Co............. 806,086
25,686* Varco International, Inc....... 1,314,802
42,082* Weatherford Enterra, Inc....... 1,896,321
------------
9,415,329
------------
OIL - SERVICES - 2.88%
114,800 ENSCO International, Inc....... 4,104,100
137,915* Global Marine Inc.............. 3,628,888
83,339* Nabors Industries, Inc......... 2,922,074
33,446* Smith International, Inc....... 2,140,544
81,400 Transocean Offshore, Inc....... 3,861,412
46,046 Witco Corp. ................... 1,985,734
34,300 York International Corp........ 1,588,519
------------
20,231,271
------------
OIL/GAS PRODUCERS - 1.29%
55,380 Cabot Corp..................... 1,450,264
45,735 Noble Affiliates, Inc.......... 1,697,912
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
OIL/GAS PRODUCERS - Continued
58,700 Pioneer Natural Resources
Corp.......................... $ 1,874,731
79,466 Ranger Oil Ltd................. 561,228
65,680 Ultramar Diamond Shamrock Corp. 1,999,135
46,991 Valero Energy Corp............. 1,474,343
------------
9,057,613
------------
PAPER/FOREST PRODUCTS - 1.20%
32,339 Bowater Inc.................... 1,451,213
36,035 Consolidated Papers, Inc....... 1,941,386
40,939 Longview Fibre Co.............. 660,141
33,300 P. H. Glatfelter Co............ 636,863
30,676 Pentair Inc.................... 1,158,019
23,100 Rayonier Inc................... 1,129,012
23,570 Standard Register Co........... 807,272
29,961 Wausau Paper Mills Co.......... 642,289
------------
8,426,195
------------
POLLUTION CONTROL - 1.09%
33,033 Calgon Carbon Corp............. 363,363
61,800* United States Filter Corp...... 1,938,975
162,500* USA Waste Services, Inc........ 5,372,656
------------
7,674,994
------------
PUBLISHING - NEWS - 0.83%
34,700 Lee Enterprises, Inc........... 960,757
22,168 Media General, Inc. Class A.... 944,911
8,561 Washington Post Co. Class B.... 3,897,395
------------
5,803,063
------------
PUBLISHING/PRINTING - 0.48%
23,886 Banta Corp..................... 597,150
29,232 Houghton Mifflin Co............ 1,088,892
12,900* Scholastic Corp................ 492,619
34,928 Wallace Computer Svcs, Inc.... 1,215,931
------------
3,394,592
------------
RAILROAD - 0.97%
16,912 GATX Corp...................... 1,027,404
49,277 Illinois Central Corp.......... 1,777,051
90,096 Kansas City Southern Ind....... 2,781,714
41,500* Wisconsin Central Transport.... 1,250,188
------------
6,836,357
------------
RESTAURANTS - 1.21%
36,633 Bob Evans Farms, Inc........... 732,660
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
RESTAURANTS - Continued
62,355* Brinker International, Inc..... $ 919,736
37,432* Buffets, Inc................... 332,209
48,966 Cracker Barrel , Inc........... 1,566,912
18,180* International Dairy Queen,
Inc. Class A ................. 479,498
32,900* Lone Star Steakhouse & Saloon.. 612,762
38,100* Outback Steakhouse Inc......... 1,140,619
16,888 Sbarro, Inc.................... 472,864
63,300* Starbucks Corp................. 2,207,587
------------
8,464,847
------------
SAVINGS & LOAN - 0.76%
49,350 Charter One Financial Inc...... 2,923,988
99,000 Dime Bancorp, Inc.............. 2,400,750
------------
5,324,738
------------
SECURITIES RELATED - 3.01%
96,014 A.G. Edwards, Inc.............. 3,252,474
94,484 Bear Stearns Co. Inc........... 3,921,085
108,202 Franklin Resources, Inc........ 9,724,655
126,000 Paine Webber Group Inc......... 4,236,750
------------
21,134,964
------------
SEMICONDUCTORS - 3.22%
73,440* Altera Corp.................... 3,437,910
127,738* Analog Devices, Inc............ 4,007,770
79,800* Atmel Corp..................... 1,790,513
33,888 Avnet, Inc..................... 2,245,080
53,136* Cirrus Logic, Inc.............. 704,052
68,982* Cypress Semiconductor Corp..... 754,491
62,054 Linear Technology Corp......... 3,994,726
51,800* Maxim Integrated Products, Inc. 3,580,675
59,081* Xilinx, Inc.................... 2,041,987
------------
22,557,204
------------
TELECOMMUNICATIONS - 2.01%
105,828* ADC Communications, Inc........ 3,935,479
39,442 COMSAT Corp.................... 902,236
63,000* LCI International, Inc. ....... 1,736,437
203,900* Nextel Communications, Inc.
Class A....................... 5,148,475
97,901* 360 Communications Co.......... 1,884,594
34,040* Vanguard Cellular Systems, Inc.
Class A....................... 474,433
------------
14,081,654
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 18
================================================================================
16 MIDCAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
TEXTILE - PRODUCTS - 0.91%
47,600* Burlington Industries, Inc..... $ 690,200
42,500* Jones Apparel Group, Inc....... 2,071,875
108,110 Shaw Industries Inc............ 1,189,210
49,629 Unifi, Inc..................... 1,885,902
24,984 Wellman, Inc................... 529,349
------------
6,366,536
------------
TOBACCO - 0.16%
28,135 Universal Corp................. 1,113,091
------------
TRUCKERS - 0.28%
20,214 Arnold Industries, Inc......... 361,325
37,200 CNF Transportation, Inc........ 1,618,200
------------
1,979,525
------------
UTILITIES - COMMUNICATION - 1.09%
28,818 Aliant Communications, Inc..... 871,745
48,450 Century Telephone Enterprises.. 2,231,728
52,964 Southern New England Telecom... 2,436,344
47,791 Telephone and Data Systems..... 2,099,817
------------
7,639,634
------------
UTILITIES - ELECTRIC - 8.83%
135,972* AES Corp....................... 4,979,975
98,314 Allegheny Energy, Inc.......... 2,980,143
43,335 Atlantic Energy, Inc........... 872,117
10,853 Black Hills Corp............... 345,261
50,100* Calenergy, Inc................. 1,665,825
18,459 Central Louisiana Electric
Co., Inc. .................... 536,465
27,916 Central Maine Power Co......... 394,314
75,364 CMS Energy Corp................ 2,967,458
49,537 Delmarva Power & Light Co...... 1,046,469
77,962 Florida Progress Corp.......... 2,762,778
24,166 Hawaiian Electric Industries,
Inc. ......................... 940,964
30,123 Idaho Power Co................. 1,012,886
59,200 Illinova Corp.................. 1,431,900
16,859 Indiana Energy, Inc............ 474,159
39,564 IPALCO Enterprises, Inc........ 1,461,395
50,619 Kansas City Power & Light Co... 1,455,296
54,342 LG&E Energy Corp............... 1,215,902
75,334 Mid American Energy Holdings
Co ........................... 1,501,971
23,218 Minnesota Power & Light Co..... 898,246
44,457 Montana Power Co............... 1,217,010
37,633 Nevada Power Co................ 872,615
87,322 New Century Energies, Inc...... 3,863,999
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
UTILITIES - ELECTRIC - Continued
52,017 New England Electrical System.. $ 2,145,701
54,221 New York State Electric & Gas.. 1,667,296
50,372 NIPSCO Industries, Inc......... 2,358,039
104,133* Northeast Utilities............ 1,347,220
32,946 OGE Energy Corp................ 1,676,128
68,023 Pinnacle West Capital Corp..... 2,623,137
95,164 Potomac Electric Power Co...... 2,355,309
33,537 Public Service Co. of New
Mexico ....................... 685,412
69,062 Puget Sound Energy Inc......... 1,907,838
84,688 Scana Corp..................... 2,339,506
95,520 TECO Energy, Inc............... 2,447,700
45,388 UtiliCorp United Inc........... 1,551,702
34,424 Washington Gas Light Co........ 922,994
90,552 Wisconsin Energy Corp.......... 2,444,903
18,416 WPL Holdings, Inc.............. 561,688
------------
61,931,721
------------
UTILITIES - GAS,DISTRIBUTION - 1.42%
45,536 AGL Resources, Inc............. 893,644
39,305 Keyspan Energy Corp............ 1,309,346
57,468 MCN Energy Group Inc........... 2,194,558
31,178 National Fuel Gas Co........... 1,455,623
125,446 Tosco Corp..................... 4,084,834
------------
9,938,005
------------
WATER SERVICES - 0.26%
64,000 American Water Works Co., Inc.. 1,836,000
------------
TOTAL COMMON STOCKS
(Cost $472,384,269)............ 693,482,727
------------
PAR
VALUE
- -----------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 0.99%
<S> <C> <C>
FINANCE COMPANIES
$3,331,000 Ford Motor Credit Co.,
5.63% due 12/1/97............. 3,331,000
3,597,000 General Motors Acceptance
Corp., 5.70% due 12/2/97...... 3,596,430
------------
6,927,430
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- -------------------------------------------------------------
<S> <C> <C>
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $6,927,430).............. $ 6,927,430
------------
UNITED STATES GOVERNMENT - 0.03%
SHORT TERM -
$ 250,000 United States Treasury Bills
4.67% due 12/11/97
(Cost $ 249,676).............. 249,676
------------
TOTAL INVESTMENTS
(Cost $479,561,375) - 99.86%... 700,659,833
Other assets less
liabilities, net - 0.14%...... 951,268
------------
NET ASSETS (equivalent
to $23.98 per share on
29,252,883 shares
outstanding) - 100%........... $701,611,101
============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 19
================================================================================
MIDCAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 17
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS DEPRECIATION
- ---------------------------------------------------------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/97)
43(2) S&P MidCap 400 Index Futures
(December/$320.95)............ $ (17,737)
============
(1)U.S.Treasury Bills with a market value of
approximately $250,000 were maintained in a
segregated account with a portion placed as
collateral for futures contracts.
(2)Per 500
- ---------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
29,252,883 shares outstanding........... $ 292,529
Additional paid in capital................ 409,893,601
Undistributed net realized gain on
securities .............................. 70,202,995
Undistributed net investment income....... 141,255
Unrealized appreciation (depreciation) of:
Investments........... $221,098,458
Futures............... (17,737) 221,080,721
------------ ------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................. $701,611,101
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 20
===============================================================================
18 MIDCAP INDEX FUND - FINANCIAL STATEMENTS (Unaudited)
===============================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends ................................................................ $ 4,400,910
Interest ................................................................. 324,149
------------
Total investment income ................................................ 4,725,059
------------
EXPENSES:
Advisory fees ............................................................ 1,102,031
Custodian and accounting services ........................................ 85,617
Reports to shareholders .................................................. 41,530
Audit fees and tax services .............................................. 7,697
Directors' fees and expenses ............................................. 7,958
Miscellaneous ............................................................ 14,364
------------
Total expenses ......................................................... 1,259,197
------------
NET INVESTMENT INCOME .................................................... $ 3,465,862
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on:
Investments ............................................... $ 30,508,735
Futures contracts ......................................... 544,498 31,053,233
------------
Net unrealized appreciation (depreciation) during the period:
Investments ............................................... 60,493,485
Futures contracts ......................................... (137,592) 60,355,893
------------ ------------
Net realized and unrealized gain on securities during the period ...... 91,409,126
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......................... $ 94,874,988
============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
For the For the
six months ended fiscal year ended
November 30,1997 May 31, 1997
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ................................................ $ 3,465,862 $ 6,894,820
Net realized gain on securities ...................................... 31,053,233 39,709,142
Net unrealized appreciation of securities during the period .......... 60,355,893 45,603,667
------------- -------------
Increase in net assets resulting from operations ................... 94,874,988 92,207,629
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................................ (3,381,471) (6,892,259)
Net realized gain on securities ...................................... -- (33,690,297)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders ................................................... (3,381,471) (40,582,556)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ..................................... 23,790,960 33,601,532
Proceeds from capital stock issued for distributions reinvested ...... 3,381,471 40,582,556
------------- -------------
27,172,431 74,184,088
Cost of capital stock repurchased .................................... (24,116,193) (59,435,374)
------------- -------------
Increase in net assets resulting from
capital stock transactions ........................................ 3,056,238 14,748,714
------------- -------------
TOTAL INCREASE IN NET ASSETS ......................................... 94,549,755 66,373,787
NET ASSETS:
Beginning of period .................................................. 607,061,346 540,687,559
------------- -------------
End of period (including undistributed net investment income
of $141,255 and $56,864) ........................................... $ 701,611,101 $ 607,061,346
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ......................................... 1,005,040 1,775,391
Shares issued for distributions reinvested ........................... 145,087 2,124,784
Shares of capital stock repurchased .................................. (1,034,578) (3,084,568)
------------- -------------
Increase in shares outstanding ..................................... 115,549 815,607
Shares outstanding:
Beginning of period ................................................ 29,137,334 28,321,727
------------- -------------
End of period ...................................................... 29,252,883 29,137,334
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
<PAGE> 21
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS 19
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 97.81%
ADVERTISING - 0.86%
9,025* ADVO, Inc...................... $ 196,294
4,300* American Business Information,
Inc. Class A.................. 50,525
4,300* American Business Information,
Inc. Class B.................. 47,300
5,100* Catalina Marketing Corp........ 235,875
400 Grey Advertising, Inc.......... 142,000
4,525* HA-LO Industries, Inc.......... 115,105
4,000* Lamar Advertising Co........... 123,000
9,200* National Media Corp............ 37,950
6,600* NFO Worldwide Inc.............. 117,150
5,400* Outdoor Systems Inc............ 166,725
4,000* Snyder Communications, Inc..... 135,750
7,100 True North Communications Inc.. 181,938
5,000* Universal Outdoor Holdings..... 223,125
5,700* Westwood One, Inc.............. 167,438
------------
1,940,175
------------
AEROSPACE/DEFENSE - 0.80%
2,300* Alliant Techsystems, Inc....... 136,706
6,700* Aviall, Inc.................... 95,056
6,600* BE Aerospace, Inc.............. 208,725
2,700 Cubic Corp..................... 86,738
9,100 EG & G, Inc.................... 178,588
5,200* Fairchild Corp. Class A........ 117,975
6,800 Gencorp Inc.................... 170,425
14,900* Geotek Communications, Inc..... 28,869
7,700* Orbital Sciences Corp.......... 197,312
1,700* Remec, Inc..................... 39,738
7,000* Rohr , Inc..................... 214,375
2,000* Sequa Corp. Class A............ 114,500
1,700* Tech-Sym Corp.................. 51,531
7,200* Trimble Navigation Ltd......... 152,550
------------
1,793,088
------------
AIRLINES - 0.43%
9,300* Airtran Holdings Inc........... 47,081
3,800* Alaska Air Group, Inc.......... 142,025
14,100 American West Holdings Corp.
Class B....................... 224,719
5,500 ASA Holdings, Inc.............. 162,937
3,100 Circle International Group,
Inc........................... 77,500
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
AIRLINES - Continued
6,100 Expeditors International of
Washington, Inc............... $ 237,519
9,100* Transport World Airlines, Inc.. 68,819
------------
960,600
------------
APPAREL & PRODUCTS - 1.39%
1,800* Abercrombie & Fitch Co......... 53,888
5,400* Ann Taylor Stores Corp......... 76,950
5,600 Authentic Fitness Corp......... 92,050
1,000* Buckle, Inc.................... 32,875
11,925 Claire's Stores, Inc........... 269,803
12,700 Designer Holdings Ltd.......... 119,063
6,300* Dress Barn, Inc................ 162,225
1,200 Fab Industries, Inc............ 35,700
6,500* Footstar Inc................... 195,000
2,900* Gadzooks, Inc.................. 80,838
6,200* Gymboree Corp.................. 179,025
6,000* Hartmarx Corp.................. 48,750
5,250 Kellwood Co.................... 180,141
4,100* Land's End, Inc................ 144,781
4,400* Men's Wearhouse, Inc........... 154,550
8,900* Nautica Enterprises, Inc....... 249,756
3,600 OshKosh B'Gosh, Inc. Class A... 117,000
4,050* Pacific Sunwear of California.. 132,131
8,900 Phillips-Van Heusen Corp....... 122,375
3,600 St. John Knits, Inc............ 137,475
6,000* Stage Stores, Inc.............. 252,750
4,400 Talbots, Inc................... 93,225
2,400 UniFirst Corp.................. 61,950
2,400* Urban Outfitters, Inc.......... 42,000
3,700* Wet Seal, Inc.................. 109,381
------------
3,143,682
------------
APPLIANCES/FURNISHINGS - 1.02%
4,850 Bassett Furniture Industries,
Inc........................... 142,469
5,000* CORT Business Services Corp.... 166,563
6,800 Ethan Allen Interiors Inc...... 261,800
15,600* Furniture Brands International,
Inc........................... 305,175
8,997* Griffon Corp................... 140,016
17,500 Heilig-Meyers Co............... 226,406
5,800* Helen Of Troy, Ltd............. 82,650
4,100 Hunt Corp...................... 88,150
4,600 Kimball International, Inc.
Class B....................... 184,288
2,400 La-Z-Boy Chair Co.............. 103,200
7,385* Metromedia International
Group......................... 72,004
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
APPLIANCES/FURNISHINGS - Continued
1,500 National Presto Industries,
Inc........................... $ 58,781
3,100 Oneida Ltd..................... 116,444
5,500* Renters Choice, Inc............ 123,750
6,800* Windmere Corp.................. 164,050
9,523* Zenith Electronics Corp........ 73,208
------------
2,308,954
------------
AUTO - CARS - 0.08%
3,100* Budget Group, Inc.............. 110,050
5,100* United Auto Group, Inc......... 71,719
------------
181,769
------------
AUTO - ORIGINAL EQUIPMENT - 0.80%
5,900* Allen Telecom, Inc............. 119,844
5,000 Arvin Industries, Inc.......... 172,500
5,100 Breed Technologies, Inc........ 102,956
6,800 Carlisle Cos. Inc.............. 289,000
5,100 Donaldson Co., Inc............. 244,800
8,600 Federal-Mogul Corp............. 353,675
7,150* Miller Industries, Inc......... 69,713
5,700 Modine Manufacturing Co........ 193,444
5,100 Superior Industries
International, Inc............ 132,600
3,100* Tower Automotive, Inc.......... 122,838
------------
1,801,370
------------
AUTO - REPLACEMENT PARTS - 0.76%
3,400 A.O. Smith Corp................ 144,713
2,800* Aftermarket Technology Corp.... 57,400
15,100* Collins & Aikman Corp.......... 134,013
475 Dart Group Corp. Class A....... 55,100
3,900* Discount Auto Parts, Inc....... 72,881
2,700 Furon Co....................... 106,650
4,800 Handy & Harman................. 107,400
8,200 Kaydon Corp.................... 270,088
3,457 Myers Industries, Inc.......... 59,633
5,350 Simpson Industries, Inc........ 62,194
3,200* SPX Corp....................... 218,800
3,200 Standard Motor Products, Inc... 63,000
4,450 Standard Products Co. Class A.. 111,806
6,700* TBC Corp....................... 67,838
3,300 Walbro Corp.................... 48,056
4,312 Wynn's International, Inc...... 139,871
------------
1,719,443
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 22
================================================================================
20 SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
BANKS - NEW YORK CITY - 0.11%
7,066 New York Bancorp, Inc.......... $ 249,960
------------
BANKS - OTHER - 0.09%
1 BankBoston Corp................ 89
600 Citizens Bancshares, Inc....... 37,500
800 Irwin Financial Corp........... 32,000
7,100 Westernbank Puerto Rico........ 132,238
------------
201,827
------------
BANKS - REGIONAL - 6.04%
7,350 AMCORE Financial, Inc.......... 174,563
3,850 Anchor BanCorp Wisconsin, Inc.. 121,275
11,796 Associated Banc-Corp........... 586,851
2,600 BancFirst Corp................. 87,100
4,700 BancorpSouth, Inc.............. 179,188
1,785 Bank of Granite Corp........... 54,219
6,200 Bank United Corp............... 260,400
3,200 Banknorth Group, Inc........... 193,600
1,207* BOK Financial Corp............. 47,985
3,200 Capital Bancorp/Miami, FL...... 164,800
2,100 Capital City Bank Group, Inc... 75,600
3,915 Chemical Financial Corp........ 156,600
6,450 Citizens Banking Corp.......... 188,662
4,464 CNB Bancshares, Inc............ 185,814
10,400 Colonial BancGroup, Inc........ 315,900
3,952 Commerce Bancorp, Inc.......... 165,737
5,450 Commercial Federal Corp........ 261,941
7,500 Commonwealth Bancorp, Inc...... 152,813
4,300 Community First Bankshares,
Inc........................... 203,175
760 Community Trust Bancorp........ 22,990
2,050 Corus Bankshares, Inc.......... 71,238
5,740 Cullen/Frost Bankers, Inc...... 304,938
3,500 F & M Bancorporation, Inc...... 129,500
4,742 F & M National Corp............ 150,855
3,724 First American Financial
Corp. Class A................. 228,095
2,450 First Citizens BancShares,
Inc Class A................... 267,050
8,800 First Colorado Bancorp., Inc... 200,200
5,600 First Commonwealth Financial
Corp. Pennsylvania............ 142,450
3,872 First Financial Bancorp........ 182,468
900 First Financial Bankshares..... 40,500
220 First Financial Corp. of
Indiana....................... 9,460
5,875 First Midwest Bancorp, Inc..... 231,328
5,208 First Western Bancorp, Inc..... 148,428
3,805 Firstbank of Illinois Co....... 121,760
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
BANKS - REGIONAL - Continued
5,800 FirstBank Puerto Rico.......... $ 195,750
1,000 FNB Corp....................... 33,000
4,480 Fort Wayne National Corp....... 170,240
9,077 Fulton Financial Corp.......... 277,983
800 GBC Bancorp.................... 43,700
3,600 Great Financial Corp........... 172,800
446 Harleysville National Corp..... 16,446
2,850 Heritage Financial Services,
Inc........................... 73,388
5,124 HUBCO, Inc..................... 177,747
6,893* Imperial Bancorp............... 321,817
8,700 Magna Group, Inc............... 348,000
10,118 Mid-Am, Inc.................... 211,214
1,925 National Bancorp of Alaska,
Inc........................... 231,000
4,337 National City Bancshares, Inc.. 208,152
2,421 National Penn Bancshares, Inc.. 76,565
3,100 Ocean Financial Corp........... 115,088
8,800* Ocwen Financial Corp........... 213,400
6,235 Old National Bancorp Indiana... 288,369
3,900 Omega Financial Corp........... 132,600
3,160 ONBANCorp, Inc................. 212,510
9,258 One Valley Bancorp of West
Virginia, Inc................. 350,069
2,200 Park National Corp............. 193,050
731 Peoples First Corp............. 26,225
8,100* PFF Bancorp, Inc............... 148,838
7,100 Riggs National Corp............ 172,619
9,700 Roslyn Bancorp, Inc............ 210,975
4,100 S&T Bancorp, Inc............... 164,000
2,300* Silicon Valley Bancshares...... 121,182
8,550 St. Paul Bancorp, Inc.......... 209,475
2,200 Sumitomo Bank of California.... 79,200
4,912 Susquehanna Bancshares, Inc.... 159,640
5,400 Texas Regional Bancshares
Class A....................... 149,175
4,700 Trans Financial, Inc........... 161,563
6,700 Trust Co. of New Jersey........ 147,400
5,992 TrustCo Bank Corp. of New York. 146,804
7,750 Trustmark Corp................. 289,656
3,993 UMB Financial Corp............. 208,634
3,700 United Bankshares Inc.
West Virginia................. 174,363
8,700 UST Corp....................... 231,094
900 Vermont Financial Services..... 24,975
4,300 Webster Financial Corp......... 269,422
4,187 Westamerica Bankcorporation.... 382,587
2,294 Westcorp....................... 38,998
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
BANKS - REGIONAL - Continued
4,300 Whitney Holding Corp........... $ 215,000
------------
13,622,196
------------
BEVERAGE - BREWERS/
DISTRIBUTORS - 0.26%
9,300 Adolph Coors Class B........... 334,800
3,200* Boston Beer, Inc. Class A...... 30,400
3,100* Canandaigua Brands, Inc.
Class A....................... 148,412
1,300* Robert Mondavi Corp. Class A .. 61,588
------------
575,200
------------
BEVERAGE - SOFT DRINKS - 0.06%
1,400 Coca-Cola Bottling Co.......... 86,275
4,500* National Beverage Corp......... 44,437
------------
130,712
------------
BROADCASTING - 1.30%
3,200 Ackerley Group, Inc............ 51,200
7,900* American Mobile Satellite Corp. 61,719
4,570* American Radio Systems, Corp.
Class A....................... 227,357
8,900* ANTEC Corp..................... 135,725
4,500* Cablevision Systems Corp.
Class A....................... 368,719
12,600* Century Communications Corp.
Class A....................... 88,200
3,100* Emmis Broadcasting Corp.
Class A....................... 139,597
3,200* Heftel Broadcasting Corp.
Class A....................... 236,400
12,400* Jacor Communications, Inc...... 542,500
2,500* Paxson Communications Corp..... 21,250
2,675* SAGA Communications, Inc.
Class A....................... 52,497
2,400* SFX Broadcasting, Inc.
Class A....................... 180,375
4,200 TCA Cable TV, Inc.............. 174,300
9,800* United International Holdings
Class A....................... 102,900
12,500* United States Satellite
Broadcasting Co., Inc.
Class A....................... 104,688
1,700 United Television, Inc......... 175,100
4,100* United Video Satellite Group,
Inc. Class A.................. 106,600
4,200* Young Broadcasting Inc.
Class A....................... 152,775
------------
2,921,902
------------
BUILDING MATERIALS - 1.13%
3,800* ABT Building Products Corp. ... 68,400
1,100 Ameron, Inc.................... 70,950
6,900 Apogee Enterprises, Inc........ 152,662
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 23
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 21
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
BUILDING MATERIALS - Continued
1,850 Butler Manufacturing Co........ $ 62,669
8,400 CalMat Co...................... 219,975
3,000 Centex Construction
Productions, Inc.............. 91,875
2,300* Cooper Companies, Inc.......... 89,844
7,300* Dal-Tile International, Inc.... 79,388
3,450 Elcor Corp..................... 83,663
8,800 Fedders USA Inc................ 51,150
3,400 Florida Rock Industries, Inc... 88,400
5,200 Interface, Inc. Class A........ 156,000
3,800 Lone Star Industries, Inc...... 198,075
4,200 Medusa Corp.................... 170,363
1,000* Mestek, Inc.................... 17,750
1,700* NCI Building Systems, Inc...... 65,237
1,100 Puerto Rican Cement Co., Inc... 46,406
5,300 Southdown, Inc................. 305,744
5,700 Texas Industries, Inc.......... 265,406
3,800* Triangle Pacific Corp.......... 122,075
5,700 Watsco, Inc.................... 148,200
------------
2,554,232
------------
CHEMICAL - MAJOR - 0.27%
3,600 Albemarle Corp................. 89,775
4,100 Chemed Corp.................... 160,413
6,009* Hexcel Corp.................... 152,103
4,500* Polymer Group, Inc............. 44,438
4,100* Synetic, Inc................... 167,075
------------
613,804
------------
CHEMICAL - MISCELLANEOUS - 1.86%
9,400 A. Schulman, Inc............... 210,325
2,750 Cambrex Corp................... 124,781
6,600 ChemFirst, Inc................. 176,963
5,800 Dexter Corp.................... 230,913
6,400 Ferro Corp..................... 245,200
5,200 Fisher Scientific
International, Inc............ 249,600
3,600* Foamex International, Inc...... 39,600
4,500 General Chemical Group, Inc.... 124,031
5,900 Geon, Co....................... 139,388
7,100 Georgia Gulf Corp.............. 220,544
3,500 H.B. Fuller Co................. 171,500
12,200 Lawter International, Inc...... 140,300
4,950 LeaRonal, Inc.................. 131,175
9,000 M.A. Hanna Co.................. 222,188
2,200 MacDermid, Inc................. 157,300
1,600* McWhorter Technologies, Inc.... 38,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
CHEMICAL - MISCELLANEOUS - Continued
5,600 Minerals Technologies Inc...... $ 245,000
5,600* Mycogen Corp................... 109,200
1,200 NCH Corp....................... 81,825
8,200* NL Industries, Inc............. 132,738
7,300 OM Group, Inc.................. 280,138
8,500 Rollins, Inc................... 173,188
2,000 Stepan Co...................... 55,750
4,000* TETRA Technologies, Inc........ 93,750
4,450* VWR Scientific Products Corp... 118,203
4,950 W.H. Brady Co. Class A ........ 152,213
5,000 WD-40 Co....................... 135,000
------------
4,198,813
------------
COAL - 0.11%
1,634 NACCO Industries, Inc. Class A. 177,902
4,100 Zeigler Coal Holding Co........ 65,088
------------
242,990
------------
CONGLOMERATES - 0.21%
2,700* MAXXAM, Inc.................... 125,719
12,400 Ogden Corp..................... 330,150
1,400* PEC Israel Economic Corp....... 28,613
------------
484,482
------------
CONSUMER FINANCE - 0.67%
7,700* AmeriCredit Corp............... 212,712
12,100* Arcadia Financial Ltd.......... 101,337
5,500 Chittenden Corp................ 242,687
5,800 Eaton Vance Corp............... 202,637
1,500 Fund American Enterprises, Inc. 183,937
7,400* IMC Mortgage Co................ 98,975
44,400* Mercury Finance Co............. 33,300
3,830* National Auto Credit, Inc...... 25,374
5,000 SEI Corp....................... 207,500
6,450 WesBanco, Inc.................. 193,500
------------
1,501,959
------------
CONTAINERS - METAL/GLASS - 0.53%
1,900* Alltrista Corp................. 55,575
4,500 AptarGroup, Inc................ 256,500
7,600 Ball Corp...................... 292,600
6,100 CLARCOR, Inc................... 180,713
1,400* CSS Industries, Inc............ 46,200
4,200 Greif Brothers Corp. Class A... 138,600
1,125 Liqui-Box Corp................. 42,469
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
CONTAINERS - METAL/GLASS - Continued
4,000* Silgan Holdings, Inc........... $ 139,000
2,900* U.S. Can Corp.................. 47,850
------------
1,199,507
------------
CONTAINERS - PAPER - 0.26%
5,300 Chesapeake Corp................ 181,525
13,000* Gaylord Container Corp. Class A 88,562
8,190 Rock-Tenn Co. Class A.......... 165,848
6,000* Shorewood Packaging Corp....... 144,750
------------
580,685
------------
COSMETICS/TOILETRIES - 0.08%
1,900 Alberto-Culver Co. Class B..... 59,256
11,500* Playtex Products, Inc.......... 112,125
------------
171,381
------------
DRUGS - 3.02%
3,500 A.L. Pharma Inc. Class A....... 80,062
7,500* Agouron Pharmaceuticals, Inc... 287,812
6,100* Alkermes, Inc.................. 120,475
9,600* Alliance Pharmaceutical Corp... 93,000
6,200* AmeriSource Health Corp.
Class A....................... 401,450
8,500* Amylin Pharmaceuticals, Inc.... 57,375
1,700* Aphton Corp.................... 19,975
2,700* Barr Laboratories, Inc......... 97,200
2,700 Bindley Western Industries,
Inc........................... 83,025
7,900 Carter-Wallace Inc............. 130,844
7,900* Cephalon, Inc.................. 79,988
5,300* CNS, Inc....................... 41,738
7,000* Columbia Laboratories, Inc..... 96,250
7,300* COR Therapeutics, Inc.......... 166,075
11,900* Covance Inc.................... 215,688
6,400* Cygnus, Inc.................... 144,000
4,500* GelTex Pharmaceuticals, Inc.... 126,000
13,900* Gensia, Inc.................... 70,369
5,000* Guilford Pharmaceuticals, Inc.. 112,500
3,300 Herbalife International, Inc... 66,000
4,800* Human Genome Sciences, Inc..... 196,800
10,465 ICN Pharmaceuticals, Inc....... 517,363
11,200* ICOS Corp...................... 154,700
4,100* IDEC Pharmaceuticals Corp...... 143,244
5,500* Incyte Pharmaceuticals, Inc.... 221,375
4,400* Inhale Therapeutic Systems..... 136,400
5,900* Interneuron Pharmaceuticals.... 70,431
5,600 Jones Medical Industries, Inc.. 184,800
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 24
================================================================================
22 SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
DRUGS - Continued
3,300* KOS Pharmaceuticals, Inc....... $ 55,275
4,450 Life Technologies, Inc......... 136,281
9,558* Ligand Pharmaceuticals, Inc.
Class B....................... 121,864
4,300* Martek Biosciences Corp........ 48,375
3,000* Medicis Pharmaceutical Class A. 128,250
7,300* Millennium Pharmaceuticals..... 146,000
2,400* Miravant Medical Technologies.. 111,900
4,030 Natures Sunshine Products, Inc. 87,904
6,700* Neoprobe Corp.................. 54,438
2,900* Neurogen Corp.................. 56,550
8,300* NeXstar Pharmaceuticals, Inc... 113,606
4,800* Parexel International Corp..... 165,600
5,300* Pathogenesis Corp.............. 188,150
11,000* P-Com, Inc..................... 193,875
6,600* Regeneron Pharmaceuticals Inc.. 65,175
2,700* Roberts Pharmaceutical Corp.... 28,012
5,200* SangStat Medical Corp.......... 181,350
6,800* Sepracor Inc................... 250,750
12,400* SEQUUS Pharmaceuticals, Inc.... 96,100
5,400* Vertex Pharmaceuticals Inc..... 149,512
5,750* Vitalink Pharmacy Services,
Inc........................... 136,563
8,000* Vivus Inc...................... 179,000
------------
6,809,469
------------
ELECTRICAL EQUIPMENT - 2.08%
8,200 AMETEK, Inc.................... 194,750
3,600* Amphenol Corp. Class A......... 182,700
6,200* Applied Magnetics Corp......... 104,625
5,257* BancTec, Inc................... 130,111
6,100 Belden, Inc.................... 202,062
4,600* Cable Design Technologies Corp. 186,300
4,300* California Microwave, Inc...... 79,550
6,100* Computer Products, Inc......... 120,856
9,600* Digital Microwave Corp......... 151,200
3,475* Electro Rent Corp.............. 129,009
2,900* Electro Scientific Industries.. 120,531
3,300* Esterline Technologies Corp.... 116,738
3,400 General Cable Corp............. 116,025
7,000* GenRad, Inc.................... 185,938
2,800* Holophane Corp................. 63,700
4,800* Hutchinson Technology, Inc..... 114,000
4,800* Identix Inc.................... 48,000
14,600* Intergraph Corp................ 154,212
7,400 Juno Lighting, Inc............. 142,450
9,400* Kemet Corp..................... 222,075
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT - Continued
5,800* Kent Electronics Corp.......... $ 194,300
5,100 Kuhlman Corp................... 180,094
4,800* Littelfuse, Inc................ 132,600
5,100* Mail-Well, Inc................. 166,387
4,600* Plexus Corp.................... 122,475
2,700* Spectrian Corp................. 55,350
4,900 Standex International Corp..... 171,806
1,200* Thermo Ecotek Corp............. 16,350
4,300 Thomas Industries Inc.......... 136,525
9,400* Uniphase Corp.................. 377,175
7,900* Vicor Corp..................... 223,175
5,100 X-Rite, Inc.................... 97,538
1,800* Zytec Corp..................... 46,800
------------
4,685,407
------------
ELECTRONIC INSTRUMENTS - 2.65%
2,300* ADE Corp. ..................... 51,750
13,800* Ampex Corp. Class A............ 35,362
1,950 Analogic Corp.................. 73,125
7,600* Berg Electronics Corp.......... 175,275
7,100 BMC Industries, Inc. .......... 131,794
7,300* C-Cube Microsystems, Inc. ..... 154,669
11,500* Checkpoint Systems, Inc........ 185,438
8,300* Cognex Corp.................... 220,988
3,300 CTS Corp....................... 112,200
4,300 Daniel Industries, Inc......... 79,819
3,000* Dionex Corp.................... 150,188
3,900* Dynatech Corp.................. 141,619
2,100* Eltron International, Inc...... 65,625
2,800* Evans & Sutherland Computer
Corp.......................... 86,800
7,600* Exabyte Corp................... 74,100
5,400 Fluke Corp..................... 128,250
10,800* Gentex Corp.................... 267,300
6,800 Gerber Scientific, Inc......... 136,000
2,200* HADCO Corp..................... 136,400
4,575 Harman International
Industries, Inc............... 231,609
9,000* Imation Corp................... 156,938
23,000* Integrated Device
Technology, Inc............... 234,312
16,300* InterDigital Communications
Corp.......................... 70,294
7,000* LoJack Corp.................... 97,125
9,500* LTX Corp....................... 52,844
7,700* MagnaTek, Inc.................. 160,737
4,200* Marshall Industries............ 144,900
7,350 Methode Electronics, Inc.
Class A....................... 119,437
5,200 National Computer Systems,
Inc........................... 189,800
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
ELECTRONIC INSTRUMENTS - Continued
3,800* Nimbus CD International, Inc... $ 37,525
18,900* OIS Optical Imaging Systems.... 31,304
2,600* Optical Cable Corp............. 24,050
4,400 Park Electrochemical Corp...... 115,500
4,700* Performance Food Group Co...... 98,700
9,537 Pioneer-Standard Electronics,
Inc........................... 156,764
4,800 Pittston Brink's Group......... 132,300
12,600* Read-Rite Corp................. 240,975
5,100* Robotic Vision Systems, Inc.... 70,444
5,000 Technitrol, Inc................ 158,438
5,700 Telxon Corp.................... 138,938
3,900* Thermedics Detection, Inc...... 39,488
7,000* Thermedics, Inc................ 111,125
4,300* Thermospectra Corp............. 40,313
5,500* Tracor, Inc.................... 154,344
6,400* Waters Corp.................... 274,000
3,400 Watkins-Johnson Co............. 106,250
5,100 ZERO Corp...................... 142,481
1,600* Zygo Corp...................... 34,200
------------
5,971,837
------------
ENTERTAINMENT - 0.48%
3,200* AMC Entertainment, Inc......... 70,200
17,200* Aztar Corp..................... 120,400
1,800* BET Holdings, Inc. Class A..... 96,300
3,900* Carmike Cinemas, Inc. Class A.. 120,656
7,200* Florida Panthers Holdings, Inc. 135,450
1,900* GC Companies, Inc.............. 82,412
6,100* Hollywood Entertainment Corp... 52,612
3,000 NN Ball & Roller, Inc.......... 25,500
1,600* Penn National Gaming, Inc...... 18,400
4,000* Playboy Enterprises, Inc....... 54,750
3,300* Primadonna Resorts, Inc........ 54,656
2,800* Sodak Gaming, Inc.............. 25,200
9,300* TCI Satellite Entertainment Inc .
Class A....................... 62,194
4,900* Ticketmaster Group, Inc........ 110,250
5,900* Toy Biz, Inc. Class A ......... 53,100
------------
1,082,080
------------
FERTILIZERS - 0.21%
9,687 Delta & Pine Land Co........... 255,486
6,504 Mississippi Chemical Corp...... 126,828
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 25
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 23
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
FERTILIZERS - Continued
7,100 Terra Industries, Inc.......... $ 86,531
------------
468,845
------------
FINANCE COMPANIES - 0.99%
6,200 Aames Financial Corp........... 83,700
8,000* Amresco, Inc................... 224,000
2,600* Capital Factors Holdings, Inc.. 45,175
5,000* Cityscape Financial Corp....... 9,062
7,400* Credit Acceptance Corp......... 37,925
2,800* Delta Financial Corp........... 46,375
5,500* FIRSTPLUS Financial Group,
Inc........................... 209,687
7,400* HomeSide, Inc.................. 203,038
5,734* Imperial Credit Industries,
Inc........................... 137,258
15,001 Keystone Financial, Inc........ 558,787
825 Oriental Financial Group....... 25,111
16,400 Phoenix Duff & Phelps Corp..... 123,000
3,700* Southern Pacific Funding....... 45,787
2,000 Student Loan Corp.............. 99,750
1,800* Triad Guaranty, Inc............ 53,100
4,900 U.S. Trust Corp................ 289,100
2,530* WFS Financial, Inc............. 30,044
------------
2,220,899
------------
FOODS - 1.09%
6,400 Dreyer's Grand Ice Cream, Inc.. 155,200
5,000 Earthgrains Co................. 216,250
7,850 Hudson Foods, Inc. Class A..... 148,659
4,100 International Multifoods Corp.. 110,187
3,600 Interpool, Inc................. 50,175
5,700 J.M. Smucker Co. Class A....... 141,075
4,800* JP Foodservice, Inc............ 141,300
7,600 Lance, Inc..................... 193,325
3,200 Michael Foods, Inc............. 70,600
5,800* NBTY, Inc...................... 126,150
1,100 Pilgrims Pride Corp............ 17,600
8,200* Ralcorp Holdings, Inc.......... 138,888
9,800 Richfood Holdings, Inc......... 267,662
6,945* Suiza Foods Corp............... 404,112
800* United Natural Foods, Inc...... 19,200
6,300 Universal Foods Corp........... 261,450
------------
2,461,833
------------
FOOTWEAR - 0.36%
7,000 Brown Group, Inc............... 113,312
5,400* Converse, Inc.................. 39,488
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
FOOTWEAR - Continued
8,800* Genesco, Inc................... $ 114,400
8,250* Just For Feet, Inc............. 139,734
4,300 Justin Industries, Inc......... 62,619
2,100* Kenneth Cole Productions,
Inc. Class A.................. 35,044
12,000 Stride Rite Corp............... 143,250
2,000* Timberland Co. Class A ........ 155,750
------------
803,597
------------
FREIGHT - 0.68%
7,350 Air Express International
Corp.......................... 210,853
5,000 Airborne Freight Corp.......... 318,437
3,200* Eagle USA Airfreight, Inc...... 99,200
10,800* Greyhound Lines, Inc........... 42,525
8,700 J.B. Hunt Transport
Services, Inc................. 141,375
6,300* Kirby Corp..................... 116,944
14,000* OMI Corp....................... 143,500
6,700 Overseas Shipholding
Group, Inc.................... 163,731
3,500* SEACOR Holdings, Inc........... 194,906
6,300* Transmontaigne Oil Co.......... 94,500
------------
1,525,971
------------
GOLD MINING - 0.13%
12,800* Amax Gold, Inc................. 28,000
5,600* Coeur d'Alene Mines Corp....... 48,300
8,230* Getchell Gold Corp............. 216,038
------------
292,338
------------
HARDWARE & TOOLS - 0.14%
4,700 Barnes Group Inc............... 122,787
6,200* Barnett, Inc................... 126,325
2,100 Lawson Products, Inc........... 63,525
------------
312,637
------------
HEALTHCARE - 2.20%
5,500* Access Health, Inc............. 163,625
11,000* Advanced Tissue Sciences, Inc.. 140,937
8,900* American Oncology
Resources, Inc................ 121,262
11,100* Apria Healthcare Group, Inc.... 174,825
2,612 Block Drug Co., Inc. Class A... 118,197
4,000* Curative Technologies, Inc..... 114,000
21,202* CYTOGEN Corp................... 67,581
4,900 HealthPlan Services Corp....... 94,631
3,300* Henry Schein, Inc.............. 116,325
12,544 Integrated Health Services,
Inc........................... 381,808
7,000 Invacare Corp.................. 161,875
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
HEALTHCARE - Continued
11,900* Laboratory Corp. of America
Holdings...................... $ 24,544
7,800* Mariner Health Group, Inc...... 113,100
5,500* Maxicare Health Plans, Inc..... 70,812
6,200 Mentor Corp.................... 210,800
4,650* National Surgery Centers, Inc.. 116,250
3,200* NCS HealthCare, Inc. Class A... 85,200
15,900* NovaCare, Inc.................. 196,762
2,558* Paragon Health Network, Inc.... 132,681
3,650* Patterson Dental Co............ 149,878
5,199* Pharmaceutical Product
Development, Inc.............. 79,285
3,000* PHP Healthcare Corp............ 48,375
5,250* Renal Care Group, Inc.......... 166,688
6,500* Renal Treatment Centers Inc.... 216,531
6,900* Respironics Inc................ 184,575
4,000* RightCHOICE Managed Care, Inc.
Class A....................... 43,250
4,400* Rural/Metro Corp............... 149,325
3,800* Sierra Health Services, Inc.... 138,225
2,600* SpaceLabs Medical, Inc......... 55,900
10,488* Sun Healthcare Group, Inc...... 225,492
5,500* Sunrise Medical Inc............ 86,969
5,850* TECHNOL Medical Products, Inc.. 128,243
11,666* Total Renal Care Holdings...... 301,858
9,600* Trigon Healthcare, Inc......... 246,000
4,000* VISX, Inc...................... 98,500
2,300 Vital Signs, Inc............... 46,575
------------
4,970,884
------------
HEAVY DUTY TRUCKS/PARTS - 0.17%
2,500 Cascade Corp................... 45,000
2,200* Detroit Diesel Corp............ 50,188
8,000 Titan International, Inc....... 160,000
4,450 Wabash National Corp........... 125,991
------------
381,179
------------
HOME BUILDERS - 0.81%
7,905 D R Horton, Inc................ 140,808
6,100 Del Webb Corp.................. 131,913
5,750* Fairfield Communities, Inc..... 266,297
9,900 Kaufman & Broad Home Corp...... 214,706
4,100* NVR, Inc....................... 92,250
5,125* Palm Harbor Homes, Inc......... 147,344
4,200 Pulte Corp..................... 170,363
6,700 Ryland Group, Inc.............. 146,144
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 26
================================================================================
24 SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
HOME BUILDERS - Continued
11,100 Standard Pacific Corp.......... $ 149,850
7,700* Toll Brothers, Inc............. 185,763
4,670* U.S. Home Corp................. 173,374
------------
1,818,812
------------
HOSPITAL MANAGEMENT - 0.65%
5,800* ABR Information Services, Inc.. 139,200
9,929* Concentra Managed Care, Inc.... 336,345
8,000* Coventry Corp.................. 119,500
5,500* FPA Medical Management......... 141,969
7,700* Magellan Health Services, Inc.. 183,356
15,800* Medaphis Corp.................. 79,000
8,000* Orthodontic Centers of
America, Inc.................. 145,000
2,700* Pediatrix Medical Group........ 119,475
10,300* Physicians Resource Group, Inc. 58,581
3,800* Prime Medical Services, Inc.... 50,350
2,800* Sunrise Assisted Living Inc.... 100,800
------------
1,473,576
------------
HOSPITAL SUPPLIES - 1.48%
5,400* Acuson Corp.................... 102,937
3,700 Advanced Technology Laboratories,
Inc........................... 159,100
4,700 Arrow International, Inc....... 164,500
8,300* Arterial Vascular Engineering.. 459,612
6,900 Ballard Medical Products....... 159,131
11,600* Bio-Technology General Corp.... 145,000
2,600* Closure Medical Corp........... 63,700
2,900* Coherent, Inc.................. 108,750
3,600* CONMED Corp.................... 85,500
5,300* Datascope Corp................. 135,481
4,200 Diagnostic Products Corp....... 116,550
4,900* Gulf South Medical Supply,
Inc........................... 159,862
3,250* Healthdyne Technologies, Inc... 62,359
5,500* Immunomedics, Inc.............. 27,156
8,300* Isis Pharmaceuticals, Inc...... 122,944
2,100 Landauer, Inc.................. 56,175
5,500* Marquette Medical Systems Inc.. 123,750
1,600* MiniMed, Inc................... 60,000
9,350 Owens & Minor, Inc............. 129,731
8,300* Physician Sales & Service...... 188,825
4,100* Physio-Control International
Corp.......................... 64,575
4,100* Safeskin Corp.................. 195,263
9,500* Summit Technology, Inc......... 61,750
4,400* TECHNE Corp.................... 81,400
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
HOSPITAL SUPPLIES - Continued
3,600* Theragenics Corp............... $ 144,450
5,200 West Co., Inc.................. 165,100
------------
3,343,601
------------
HOUSEHOLD PRODUCTS - 0.55%
6,500 Church & Dwight Co., Inc....... 190,938
5,461* Culligan Water Technologies,
Inc............................ 245,062
8,100 First Brands Corp.............. 208,069
3,900 Libbey, Inc.................... 154,050
4,400* Linens `N Things, Inc.......... 151,250
7,050* Rykoff-Sexton, Inc............. 158,184
4,500 Stanhome Inc................... 115,875
1,500* USA Detergents, Inc............ 15,844
------------
1,239,272
------------
HUMAN RESOURCES - 0.41%
5,700* COREStaff, Inc................. 153,187
3,100* Data Processing Resources Corp. 71,687
6,000* Employee Solutions, Inc........ 33,000
9,000* Interim Services Inc........... 254,812
3,200 Kelly Services Inc. Class A.... 92,400
3,300 Norrell Corp................... 80,438
4,200* Personnel Group of America,
Inc........................... 153,562
2,500* Staffmark, Inc................. 87,187
------------
926,273
------------
INFORMATION PROCESSING - 9.39%
16,400* A.C. Nielson................... 367,975
3,200* Activision, Inc................ 51,200
8,900* Acxiom Corp.................... 152,969
4,733* ADAC Laboratories.............. 98,801
2,600* Advent Software, Inc........... 61,425
7,600* Affiliated Computer Services,
Inc. Class A.................. 177,650
6,600* Amati Communications Corp...... 130,763
8,700* American Management Systems.... 202,819
5,200 Analysts International Corp.... 247,650
8,800* Anixter International, Inc..... 157,850
3,800* Arbor Software Corp............ 114,950
5,100* Aspen Technology, Inc.......... 194,438
8,900* Auspex Systems, Inc............ 99,569
6,808* Avant! Corp.................... 162,967
1,459 Baan Co. NV.................... 104,319
2,550* Barra, Inc..................... 71,082
7,200* BDM International Inc.......... 210,600
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
INFORMATION PROCESSING - Continued
5,200* Bea Systems, Inc............... $ 74,750
4,100* Bell & Howell Co............... 97,375
5,800 BISYS Group, Inc............... 185,600
4,100* Black Box Corp................. 146,063
5,925* Boole & Babbage, Inc........... 175,528
11,800* Borland International, Inc..... 119,475
6,400* Boston Technology, Inc......... 137,600
1,300* BRC Holdings, Inc.............. 53,625
5,200* Broderbund Software, Inc....... 151,125
6,900* CCC Information Services....... 131,100
2,400* CDW Computer Centers, Inc...... 141,600
4,200* Centennial Technologies, Inc... 8,400
6,000* Cerner Corp.................... 144,375
12,600* Checkfree Corp................. 329,963
6,850* CHS Electronics, Inc........... 129,295
2,900* Ciber, Inc..................... 127,600
6,700* Citrix Systems, Inc............ 479,887
6,500* Clarify, Inc................... 69,875
8,125* Computer Horizons Corp......... 268,125
1,950* Computer Management Sciences,
Inc........................... 31,688
4,700 Computer Task Group, Inc....... 148,050
22,900* Computervision Corp............ 83,013
5,500* Comverse Technology, Inc....... 185,281
16,900* CopyTele, Inc.................. 60,206
6,900* CSG Systems International, Inc. 255,300
3,000* CyberMedia, Inc................ 67,500
2,900* Data Dimensions, Inc........... 52,925
9,900* Data General Corp.............. 177,582
3,800* Data Transmission Network...... 102,600
2,900* Davox Corp..................... 95,700
2,300* Dialogic Corp.................. 96,456
11,400* Diamond Multimedia Systems,
Inc........................... 112,575
2,300* Documentum, Inc................ 71,444
4,700* Edify Corp..................... 79,313
4,000* Envoy Corp..................... 123,500
3,200 Fair Issac & Co., Inc.......... 137,200
5,400* FileNet Corp................... 148,163
5,900* Forte Software, Inc............ 59,737
7,500* FTP Software, Inc.............. 16,875
6,800* General DataComm Industries,
Inc........................... 35,700
8,000* GT Interactive Software Corp... 65,500
4,000* Harbinger Corp................. 120,000
2,900* HCIA, Inc...................... 34,800
4,450 Henry Jack & Associates........ 112,364
10,500* HMT Technology Corp............ 137,813
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 27
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 25
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
INFORMATION PROCESSING - Continued
4,000* HNC Software, Inc.............. $ 126,000
6,000* HPR, Inc....................... 159,563
5,800* Hyperion Software Corp......... 249,945
2,000* IDX Systems Corp............... 60,000
5,400* IKOS Systems, Inc.............. 43,200
3,400* Imnet Systems, Inc............. 55,887
3,700* In Focus Systems, Inc.......... 121,638
7,800* Industri-Matematik
International Corp............ 212,550
4,700* Infinity Financial
Technology, Inc............... 79,313
3,800* Information Management
Resources..................... 98,563
9,700* Information Resources, Inc..... 144,287
4,600 Innovex, Inc................... 105,800
3,000* Inso Corp...................... 32,250
2,300* Integrated Circuit Systems..... 64,687
3,800* Integrated Systems, Inc........ 59,137
6,700* International Network
Services...................... 120,600
5,800* INTERSOLV, Inc................. 92,438
2,800* Intevac, Inc................... 28,000
2,900* JDA Software Group, Inc........ 89,900
1,900* JPM Co......................... 46,550
2,000* Kronos, Inc.................... 62,500
11,600* Learning Co., Inc.............. 210,250
3,300* Learning Tree International,
Inc........................... 82,088
5,300* Legato Systems, Inc............ 202,063
2,400* LHS Group, Inc................. 103,200
2,900* Lycos, Inc..................... 88,631
10,000* Macromedia, Inc................ 99,688
3,700* Manugistics Group, Inc......... 129,037
11,800* Mentor Graphics Corp........... 112,100
5,800* Mercury Interactive Corp....... 141,375
4,500* Metromail Corp ................ 80,438
4,000* Micrel, Inc.................... 138,500
7,000* MicroProse, Inc................ 33,250
2,700* MICROS Systems, Inc............ 141,750
4,000 MTS Systems Corp............... 153,500
5,200* Mylex Corp..................... 41,600
5,250* National Instruments Corp...... 141,095
3,900* National TechTeam, Inc......... 41,925
3,400* Network Appliance, Inc......... 171,275
6,800* Network Computing Devices...... 56,950
12,600* Network General Corp........... 237,825
3,900* NOVA Corp...................... 104,325
11,800* Oak Technology, Inc............ 97,350
2,700* ODS Networks, Inc.............. 22,782
4,100 OEA, Inc....................... 127,613
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
INFORMATION PROCESSING - Continued
7,645* Paxar Corp..................... $ 114,675
2,800* Pegasystems, Inc............... 53,900
2,200* Perceptron, Inc................ 48,675
4,300* Periphonics Corp............... 41,657
4,700* Phoenix Technologies Ltd....... 69,325
7,500* Physician Computer Network,
Inc........................... 36,563
10,600* Picturetel Corp................ 92,088
17,300* PLATINUM technology, Inc....... 449,800
7,100* PMC-Sierra, Inc................ 195,250
8,500* PMT Services, Inc.............. 133,875
3,800* Policy Management Systems
Corp.......................... 245,575
5,800* Primark Corp................... 196,475
5,100* Progress Software Corp......... 105,187
2,300* Project Software &
Development, Inc.............. 44,850
11,000* PsiNet, Inc.................... 74,250
2,900* QuickResponse Services, Inc.... 101,863
1,500* Radisys Corp................... 67,125
3,200* Rambus Inc..................... 178,600
20,843* Rational Software Corp......... 211,035
960* Registry, Inc.................. 42,300
6,000* Remedy Corp.................... 261,750
12,000* S3, Inc........................ 76,500
5,800* Safeguard Scientifics, Inc..... 183,064
4,000* Sandisk Corp................... 98,000
400* Sapient Corp................... 20,800
4,200* Scopus Technology, Inc......... 50,400
8,700* Sequent Computer Systems, Inc.. 202,275
8,800* Shiva Corp..................... 78,100
4,800* Siebel Systems, Inc............ 199,800
2,600* Sipex Corp..................... 80,925
3,600* SMART Modular Technologies,
Inc........................... 223,200
3,500* Splash Technology Holdings..... 113,750
2,700* SPSS, Inc...................... 67,838
7,100* Stratus Computer, Inc.......... 231,194
8,700* Structural Dynamic Research
Corp.......................... 145,182
3,100* Sykes Enterprises, Inc......... 71,300
15,300* Symantec Corp.................. 382,500
9,650* System Software Associates,
Inc........................... 127,862
5,000* Systems & Computer Technology
Corp.......................... 233,750
4,300* Systemsoft Corp................ 30,906
6,450* Technology Solutions Co........ 199,145
5,800* Transition Systems, Inc........ 121,075
2,900* Trident Microsystems, Inc...... 33,169
3,600* USCS International, Inc........ 68,400
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
INFORMATION PROCESSING - Continued
9,400* Vanstar Corp................... $ 129,250
3,600* Vantive Corp................... 86,850
1,600* Veeco Instruments, Inc......... 63,800
7,650* Veritas Software Corp.......... 334,449
4,200* Viasoft, Inc................... 154,350
4,100* VideoServer, Inc............... 61,757
6,300* Viewlogic Systems, Inc......... 167,737
4,900* Visio Corp..................... 184,362
2,800* Volt Information Sciences,
Inc........................... 179,025
3,200* Wall Data, Inc................. 52,000
8,500* Wang Laboratories, Inc......... 188,063
4,850* Wind River Systems Inc......... 188,241
3,500* Wonderware Corp................ 63,875
5,500* Xircom, Inc.................... 58,438
5,200* Yahoo!, Inc.................... 265,850
4,900* Zebra Technologies Corp.
Class A....................... 156,188
------------
21,139,279
------------
INSURANCE - CASUALTY - 1.06%
5,000* Acceptance Insurance
Companies, Inc................ 121,562
4,700 Baldwin & Lyons, Inc. Class B.. 113,975
2,600 Citizens Corp.................. 76,538
5,100 Commerce Group, Inc............ 160,013
4,500 E.W. Blanch Holdings, Inc...... 155,531
6,370 Frontier Insurance Group, Inc.. 153,278
4,473 Gainsco, Inc................... 37,461
6,900 HCC Insurance Holdings, Inc.... 129,375
5,700* Highlands Insurance Group,
Inc........................... 160,312
3,600 NAC Re Corp.................... 160,650
1,100 Nymagic, Inc................... 28,050
6,362 Orion Capital Corp............. 286,688
6,500* Risk Capital Holdings, Inc..... 149,500
1,500 RLI Corp....................... 65,531
3,600 Selective Insurance Group...... 181,350
4,350 Trenwick Group Inc............. 161,494
1,805 United Fire & Casualty Co...... 78,969
3,100 Vesta Insurance Group, Inc..... 170,112
------------
2,390,389
------------
INSURANCE - LIFE - 0.66%
1,950 American Heritage Life
Investment Corp............... 71,662
2,500* Compdent Corp.................. 50,938
5,800 Hartford Life Inc. Class A..... 222,575
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 28
================================================================================
26 SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
INSURANCE - LIFE - Continue
300 Kansas City Life Insurance Co.. $ 25,069
4,300* Life USA Holding, Inc.......... 72,025
500* National Western Life
Insurance Co. Class A......... 46,625
6,500 Presidential Life Corp......... 132,031
10,850 Reinsurance Group of America,
Inc........................... 463,159
7,570 United Companies Financial
Corp.......................... 164,174
5,550 W.R. Berkley Corp.............. 231,019
------------
1,479,277
------------
INSURANCE - MISCELLANEOUS - 1.29%
3,675 ALLIED Group, Inc.............. 150,445
6,200* Amerin Corp.................... 144,925
4,100 Arthur J. Gallaher & Co........ 146,575
2,700 Capital Re Corp................ 151,369
1,800 CapMAC Holdings, Inc........... 60,975
6,400 CMAC Investment Corp........... 332,400
9,000 Crawford & Co. Class B......... 186,750
2,400 Executive Risk, Inc............ 156,000
4,877 Fidelity National Financial.... 126,802
1,900 Foremost Corp. of America...... 115,306
5,312 Fremont General Corp........... 244,352
1,770 Guaranty National Corp......... 63,499
3,200 Harleysville Group............. 74,000
3,250 Hilb, Rogal & Hamilton Co...... 62,156
5,100 HSB Group Inc.................. 264,881
3,000 Liberty Corp................... 135,000
10,300* Mid Atlantic Medical
Services, Inc................. 137,119
4,400 MMI Companies, Inc............. 106,150
525 Poe & Brown Inc................ 21,984
4,200 SCPIE Holdings, Inc............ 117,075
4,100 Zenith National Insurance Corp. 109,675
------------
2,907,438
------------
INSURANCE - MULTILINE - 0.80%
4,650 Alfa Corp...................... 75,562
2,278 American Annuity Group, Inc.... 47,411
3,500 AmVestors Financial Corp....... 76,781
4,400 Argonaut Group, Inc............ 146,300
3,200 CNA Surety Corp................ 46,400
3,427* Delphi Financial Group, Inc.
Class A....................... 137,508
3,900 FBL Financial Group, Inc.
Class A....................... 154,050
5,300 John Alden Financial Corp...... 142,769
3,500 Life Re Corp................... 199,937
1,050* Markel Corp.................... 161,700
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
INSURANCE - MULTILINE - Continued
2,000 Meadowbrook Insurance Group,
Inc........................... $47,250
4,944* Medical Assurance, Inc......... 140,595
6,200 PennCorp Financial Group, Inc.. 209,638
3,000 United Wisconsin Services, Inc. 73,125
4,600* Washington National Corp....... 152,088
------------
1,811,114
------------
LEISURE TIME - 1.07%
8,100* Acclaim Entertainment, Inc..... 32,906
3,800* Action Performance Companies,
Inc........................... 110,200
2,100* Anchor Gaming.................. 166,950
400* Ballys Grand, Inc.............. 20,500
9,000* Boyd Gaming Corp............... 65,250
4,000* Family Golf Centers, Inc....... 113,750
6,600* Grand Casinos Inc.............. 86,625
8,500* Handleman Co................... 56,844
6,100* Hollywood Park, Inc............ 118,950
5,000 Huffy Corp..................... 75,313
6,200* Lewis Galoob Toys, Inc......... 73,625
8,500 Polaris Industries, Inc........ 257,656
3,500* Premier Parks, Inc............. 136,500
4,900* Rio Hotel & Casino Inc......... 102,287
4,900* Sabre Group Holdings, Inc...... 126,175
4,800* Scotts Co. Class A............. 140,400
6,100 Showboat Inc................... 117,044
5,150* Signature Resorts, Inc......... 137,762
5,200* Station Casinos, Inc........... 34,450
5,800* Trump Hotels & Casino
Resorts, Inc.................. 50,387
5,500* Vail Resorts Inc............... 145,406
3,300* Vistana, Inc................... 73,013
3,600 Winnebago Industries, Inc...... 27,675
5,800* WMS Industries Inc............. 134,850
------------
2,404,518
------------
LODGING - 0.68%
6,450* Bristol Hotel Co............... 159,637
4,100* CapStar Hotel Co............... 153,494
14,400* Choice Hotels International
Inc........................... 251,100
4,100 Deltic Timber Corp............. 117,875
42 Doubletree Corp................ 1,845
12,600* Host Marriott Services Corp.... 185,062
4,400* Interstate Hotels Co........... 162,800
5,293 Marcus Corp.................... 149,527
8,200* Prime Hospitality Corp......... 156,825
4,300* Red Roof Inns, Inc............. 68,262
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
LODGING - Continued
4,800* Sunburst Hospitality Corp...... $ 48,000
1,600* Wyndham Hotel Corp............. 68,000
------------
1,522,427
------------
MACHINE TOOLS - 0.47%
2,300* Chase Industries, Inc.......... 56,063
9,100 Cincinnati Milacron, Inc....... 269,019
7,200* Gilead Sciences, Inc........... 248,400
3,200 Gleason Corp................... 83,000
5,000 OmniQuip International, Inc.... 95,625
2,500* PRI Automation Inc............. 85,313
7,600 Roper Industries, Inc.......... 218,975
------------
1,056,395
------------
MACHINERY - AGRICULTURE - 0.15%
2,700 Allied Products Corp........... 65,137
3,600 Lindsay Manufacturing Co....... 146,025
3,100 Toro Co........................ 136,788
------------
347,950
------------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.64%
2,700 Blount, Inc. Class A........... 136,519
3,700* CDI Corp....................... 153,088
7,600* Calpine Corp................... 112,100
5,200 Columbus McKinnon Corp......... 121,550
3,300 Granite Construction, Inc...... 75,487
3,900* J. Ray Mcdermott S.A........... 144,056
5,300* Jacobs Engineering Group, Inc.. 140,119
5,300 Kaman Corp. Class A............ 98,050
7,100 Lennar Corp.................... 148,213
3,522* Morrison Knudsen Corp.......... 34,780
2,900 Stone & Webster, Inc........... 135,937
5,600 TJ International Inc........... 139,300
------------
1,439,199
------------
MACHINERY - INDUSTRIAL/
SPECIALTY - 2.24%
4,900 AAR Corp....................... 188,956
4,700 Albany International Corp.
Class A....................... 114,269
6,075 Applied Industrial Technology,
Inc........................... 171,619
3,225 Applied Power, Inc. Class A.... 196,725
1,600* Asyst Technologies, Inc........ 49,300
4,780 Baldor Electric Co............. 147,881
7,080 Burlington Coat Factory
Warehouse..................... 132,307
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 29
================================================================================
SMALL CAP INDEX FUND - STATEMENTS OF NET ASSETS CONTINUED 27
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
MACHINERY - INDUSTRIAL/
SPECIALTY - Continued
7,400* DII Group, Inc................. $ 165,575
5,400 Exide Corp..................... 128,925
11,600 Flowserve Corp................. 311,750
1,175 General Binding Corp........... 35,544
4,500 Graco, Inc..................... 160,875
5,800 Helix Technology Corp.......... 136,663
4,800 Hughes Supply, Inc............. 157,200
6,750 IDEX Corp...................... 224,859
2,550* Insilco Corp................... 88,613
4,700* Integrated Process Equipment
Corp.......................... 101,050
4,100* Ionics, Inc.................... 151,188
9,000 JLG Industries, Inc............ 115,313
5,100* Kulicke & Soffa Industries
Inc........................... 140,569
5,850 Lilly Industries, Inc.
Class A....................... 107,494
4,800 Lincoln Electric Co. Class A... 178,500
4,275 Manitowoc Co., Inc............. 142,411
6,800 Newport News Shipbuilding...... 164,900
2,800 Nordson Corp................... 147,000
4,140* Oak Industries Inc............. 114,626
900* Osmonics, Inc. ................ 13,050
5,200 Regal-Beloit Corp.............. 141,375
3,100 Robbins & Myers, Inc........... 119,350
4,500 Scotsman Industries Inc........ 114,469
4,400* Specialty Equipment Companies,
Inc........................... 68,200
3,800* SPS Technologies, Inc.......... 166,250
7,700 Stewart & Stevenson
Services, Inc................. 167,475
6,000* Stillwater Mining Co........... 109,500
3,800 Tennant Co..................... 143,925
4,600 Watts Industries, Inc.
Class A...................... 117,013
3,300* Zoltek Companies, Inc.......... 122,513
------------
5,057,232
------------
MEDICAL TECHNOLOGY - 1.43%
4,900* Affymetrix, Inc................ 168,437
4,800* Arqule, Inc.................... 99,000
2,700* Biomatrix, Inc................. 79,312
2,200* Bio-Rad Laboratories, Inc.
Class A....................... 55,412
4,100* Cadus Pharmaceutical Corp...... 52,275
3,700 Capstone Pharmacy Services..... 41,162
7,700* Creative BioMolecules, Inc..... 59,675
3,800* Cytyc Corp..................... 82,175
7,200 Dekalb Genetics Corp. Class B.. 279,900
7,500* Enzo Biochem, Inc.............. 121,406
5,900* Haemonetics Corp............... 86,656
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
MEDICAL TECHNOLOGY - Continued
5,200* Heartport Inc.................. $ 117,000
3,900* Hologic, Inc................... 100,913
7,100* Idexx Laboratories, Inc........ 113,156
26,600* Imatron, Inc................... 90,608
4,200* I-STAT Corp.................... 77,700
1,235 Lab Holdings, Inc.............. 28,637
8,400* Liposome, Inc.................. 49,875
1,800* Lunar Corp..................... 40,725
2,700* Myriad Genetics, Inc........... 74,250
8,400* NABI, Inc...................... 35,700
5,800* Neopath, Inc................... 95,700
6,300* Neurex Corp.................... 98,438
7,400* Neuromedical Systems, Inc...... 27,750
5,900* Organogenesis, Inc............. 202,075
2,700* Perclose, Inc.................. 55,350
93* Perseptive Biosystems, Inc.
(Warrants).................... 325
3,800* Protein Design Labs, Inc....... 159,600
5,700* Quest Diagnostics Inc.......... 92,981
11,124* Scios Nova Inc................. 84,125
5,350* Serologicals Corp.............. 119,038
3,300* Spine-Tech, Inc................ 108,694
3,700* Thermo Cardiosystems, Inc...... 71,687
3,400* ThermoTrex Corp................ 82,450
3,800* Transkaryotic Therapies, Inc... 131,100
5,400* US Bioscience, Inc............. 49,950
------------
3,233,237
------------
MERCHANDISE -DRUG - 0.45%
6,825 Arbor Drugs, Inc............... 185,128
3,300* Express Scripts, Inc. Class A.. 194,700
7,600 Longs Drug Stores Corp......... 222,300
4,900* Medimmune, Inc................. 187,425
16,500* Perrigo Co..................... 235,125
------------
1,024,678
------------
MERCHANDISE - SPECIALTY - 3.25%
4,200* Ames Department Stores, Inc.... 71,400
5,100* APAC Teleservices Inc.......... 71,400
6,818 Arctic Cat, Inc................ 71,589
5,100* Avid Technology, Inc........... 149,175
7,800* Best Buy Co., Inc.............. 227,175
11,800* BJ's Wholesale Club Inc........ 343,675
1,600* Bush Boake Allen, Inc.......... 45,000
6,500 Casey's General Stores, Inc.... 153,156
6,567 Cash America International,
Inc........................... 82,088
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
MERCHANDISE - SPECIALTY - Continued
6,000* Central Garden & Pet Co........ $ 170,250
24,700* Charming Shoppes, Inc.......... 121,186
3,000* Cole National Corp. Class A.... 103,500
5,600* Compucom Systems, Inc.......... 57,400
1,000* Copart, Inc.................... 17,438
2,900 Cross (A.T.) Co. Class A....... 31,356
2,100* Daisytek International Corp.... 82,425
4,500* Department 56, Inc............. 131,344
5,900* Eagle Hardware & Garden, Inc... 100,300
12,200 Fingerhut Companies, Inc....... 253,150
1,300* Fossil, Inc.................... 28,925
5,200* Franklin Covey Co.............. 110,175
5,000* Friedman's, Inc. Class A....... 73,125
5,950* Garden Ridge Corp.............. 90,737
6,100* Gibson Greetings, Inc.......... 142,587
7,200* Graham Field Health Products... 107,550
2,300* Guitar Center, Inc............. 50,025
8,800 Hancock Fabrics, Inc........... 124,300
3,105 Hancock Holding Co............. 184,748
8,300* Homebase, Inc.................. 69,513
3,200* Inacom Corp.................... 90,800
7,800 Jostens, Inc................... 187,200
3,578 K2, Inc........................ 98,395
1,800* Knoll, Inc..................... 54,225
3,700 LabOne, Inc.................... 60,125
6,300* Mac Frugal's Bargains
Close-outs Inc................ 270,112
5,500* Michaels Stores, Inc........... 178,062
7,300* Micro Warehouse, Inc........... 105,850
5,200* MicroAge, Inc.................. 104,650
4,000* Nu Skin Asia Pacific, Inc.
Class A....................... 80,000
2,700* Paragon Trade Brands, Inc...... 60,750
4,000* Petco Animal Supplies, Inc..... 118,000
5,900 Price Enterprises Inc.......... 106,200
6,900* Rexall Sundown, Inc............ 163,875
2,700 Russ Berrie and Co. Inc........ 80,663
3,700* Seitel, Inc.................... 142,450
9,600* Sitel Corp..................... 89,400
9,300 Sotheby's Holdings, Inc.
Class A....................... 158,681
1,614 South Jersey Industries, Inc... 40,552
6,200* Spiegel, Inc. Class A.......... 33,325
8,050* Sports Authority, Inc.......... 157,981
7,300 Sturm, Ruger & Co. Inc......... 132,313
18,700* Sunglass Hut International..... 119,213
3,500* Tractor Supply Co.............. 54,250
6,500* Twinlab Corp................... 119,438
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 30
================================================================================
28 SMALL CAP INDEX FUND - STATEMENTS OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
MERCHANDISE - SPECIALTY - Continued
4,300* United Stationers Inc.......... $ 184,900
3,300 Unitog Co...................... 75,900
28,950* US Office Products, Co......... 575,381
2,100* West Marine, Inc............... 44,100
4,900* Williams-Sonoma, Inc........... 186,813
8,600* Zale Corp...................... 191,350
------------
7,329,646
------------
MERCHANDISING - DEPARTMENT - 0.53%
1,300* Alexander's, Inc............... 118,462
4,100* Carson Pirie Scott & Co........ 211,663
19,272 Pier 1 Imports, Inc............ 431,211
10,292* Proffit's Inc.................. 314,549
3,750* Stein Mart, Inc................ 110,625
------------
1,186,510
------------
MERCHANDISING - FOOD - 0.80%
4,500* Dominick's Supermarkets, Inc... 174,937
75 Farmer Bros. Co................ 11,700
9,400 Fleming Companies, Inc......... 156,275
2,900 Great Atlantic & Pacific
Tea Co., Inc.................. 89,537
3,700* IHOP Corp...................... 126,263
1,500 Ingles Markets, Inc. Class A... 20,250
2,875 NashFinch Co................... 53,906
3,634* Quality Food Centers Inc....... 228,261
6,700 Ruddick Corp................... 136,513
1,600 Sanderson Farms, Inc........... 19,400
4,485 Savannah Foods & Industries,
Inc........................... 80,169
5,000* ShowBiz Pizza Time, Inc........ 107,500
3,000 Smart & Final Inc.............. 54,750
7,400* Smithfield Foods, Inc.......... 261,775
6,000* Whole Foods Market, Inc........ 275,250
------------
1,796,486
------------
MERCHANDISING - MASS - 0.14%
4,900* Global Directmail Corp......... 88,200
1,475* Pricesmart, Inc................ 23,784
34,000* Service Merchandise Co., Inc... 114,750
4,500 ShopKo Stores, Inc............. 94,500
------------
321,234
------------
METALS - ALUMINUM - 0.29%
5,300* ACX Technologies, Inc.......... 142,106
8,300 Century Aluminum Co............ 121,387
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
METALS - ALUMINUM - Continued
5,700 Commonwealth Industries, Inc... $ 94,763
4,400 IMCO Recycling, Inc............ 69,300
5,500* Kaiser Aluminum Corp........... 57,062
2,706 Tredegar Industries, Inc....... 178,258
------------
662,876
------------
METALS - COPPER - 0.12%
3,700* Essex International, Inc....... 119,556
4,800* Wolverine Tube, Inc............ 152,400
------------
271,956
------------
METALS - MISCELLANEOUS - 0.78%
3,337 A.M. Castle & Co............... 78,002
6,100 Brush Wellman Inc.............. 144,875
4,033 Commercial Metals Co........... 132,837
6,000 Freeport McMoRan, Inc.......... 189,000
19,700* Hecla Mining Co................ 97,269
7,800 Kennametal, Inc................ 410,962
4,050* Material Sciences Corp......... 59,484
4,400* Oregon Metallurgical Corp...... 141,350
4,500* RMI Titanium Co................ 106,875
5,000* Ryerson Tull, Inc. Class A..... 74,063
7,900* Steel Dynamics, Inc............ 146,150
3,300* Titanium Metals Corp........... 101,887
1,300* Tremont Corp................... 74,019
------------
1,756,773
------------
METALS - STEEL - 1.21%
3,000* Acme Metals, Inc............... 37,312
14,200 AK Steel Holding Corp.......... 279,562
2,400 Amcast Industrial Corp......... 59,400
25,300* Armco Inc...................... 134,406
8,600 Birmingham Steel Corp.......... 131,687
4,400 Carpenter Technology Corp...... 207,350
1,100 Chaparral Steel Co............. 16,844
1,800* Citation Corp.................. 30,938
2,800 Cleveland-Cliffs Inc........... 120,750
3,650 Commercial Intertech Corp...... 65,244
3,000* Gibraltar Steel Corp........... 60,375
4,100* Intermedia Communications,
Inc........................... 203,463
7,200 Intermet Corp.................. 133,200
4,500 J & L Specialty Steel, Inc..... 43,875
6,100 Lukens Inc..................... 102,175
4,900* Mueller Industries, Inc........ 228,156
7,400* National Steel Corp. Class B... 111,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------------
<S> <C> <C>
METALS - STEEL - Continued
5,400 Oregon Steel Mills, Inc........ $ 105,975
3,700 Quanex Corp.................... 110,075
2,100 Reliance Steel & Aluminium Co.. 58,931
3,300* Shiloh Industries, Inc......... 61,875
4,100 TriMas Corp.................... 127,100
6,000 UNR Industries, Inc............ 30,750
7,700 Valmont Industries, Inc........ 167,475
4,800* Wyman-Gordon Co................ 102,600
------------
2,730,518
------------
MISCELLANEOUS - 2.50%
2,900* Abacus Direct Corp............. 121,075
4,800* Alternative Resources Corp..... 117,600
6,200 AMCOL International Corp....... 148,800
4,500* AMERCO, Inc.................... 127,125
4,600 Arch Coal, Inc................. 121,037
5,200* Associated Group, Inc. Class A. 169,650
2,800* Avondale Industries, Inc....... 79,450
4,100* Bacou U.S.A., Inc.............. 69,700
3,800* Billing Information Concepts
Corp.......................... 169,100
3,500* Borg-Warner Security Corp...... 62,562
10,950* Brightpoint, Inc............... 175,884
3,400* Caribiner International, Inc... 144,288
1,300 Central Parking Corp........... 74,831
3,300* Clin Trials, Inc............... 27,638
4,500* Coach USA, Inc................. 125,438
900* Coinmach Laundry Corp.......... 18,225
1,900* Computer Learning Centers...... 104,737
6,700* DeVry, Inc..................... 179,225
3,600* Encad, Inc..................... 139,050
2,100* Equity Corp. International..... 44,888
7,500* Figgie International, Inc.
Class A....................... 103,125
6,600* Firearms Training Systems...... 39,600
3,758 Gemstar Group Ltd.............. 89,253
4,100* Hvide Marine, Inc. Class A..... 116,081
1,275* ITT Educational Services, Inc.. 26,775
1,800 Matthews International Corp.
Class A....................... 76,725
2,000* Metzler Group, Inc............. 78,000
5,900* Moneygram Payment Systems...... 75,963
2,850* Pinkerton's, Inc............... 65,194
6,800* Prepaid Legal Services, Inc.... 192,525
4,700 Regis Corp..................... 111,038
5,900* Rexel, Inc..................... 132,381
5,800* Romac International, Inc....... 113,100
3,100* Samsonite Corp................. 112,375
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 31
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 29
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
MISCELLANEOUS - Continued
5,800* Sola International, Inc........ $ 175,450
3,850* Sylvan Learning Systems, Inc... 156,887
2,900* The Profit Recovery Group
International, Inc............ 44,406
4,200* Triangle Pharmaceuticals, Inc.. 75,600
2,800* TurboChef, Inc................. 29,050
3,600* U.S. Rentals, Inc.............. 92,475
4,900* Veritas DGC Inc................ 196,000
5,000* Veterinary Centers of America.. 63,125
5,000 Wackenhut Corp................. 108,125
3,900* Wackenhut Corrections Corp..... 109,200
10,100 Washington Water Power Co...... 215,888
6,600* West Teleservices Corp......... 76,725
4,500* Westell Technologies, Inc.
Class A........................ 74,813
5,600 Westinghouse Air Brake Co...... 128,800
3,100* Whittman-Hart, Inc............. 101,525
3,500 Woodward Governor Co........... 114,625
5,100* World Access, Inc.............. 124,950
7,600* Xlyan Corp..................... 155,800
4,700* Zitel Corp..................... 52,875
------------
5,648,757
------------
MOBILE HOMES - 0.45%
12,352* Champion Enterprises, Inc...... 237,776
3,800 Coachmen Industries, Inc....... 84,550
5,400 Fleetwood Enterprises, Inc..... 192,713
2,500 McGrath Rentcorp............... 54,531
10,300 Oakwood Homes Corp............. 309,000
4,200 Skyline Corp................... 113,925
1,050 Thor Industries, Inc........... 33,141
------------
1,025,636
------------
NATURAL GAS - DIVERSIFIED - 0.83%
8,450 Atmos Energy Corp.............. 224,453
6,100 Bay State Gas Co............... 179,187
4,800 Eastern Enterprises............ 193,200
4,500 Laclede Gas Co................. 116,156
4,500 New Jersey Resources Corp...... 156,656
2,201* Southern Union Co.............. 56,120
6,400 Southwest Gas Corp............. 119,200
3,772* Tejas Gas Corp................. 230,564
8,300 UGI Corp....................... 229,806
7,300 Western Gas Resources, Inc..... 166,988
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
NATURAL GAS - DIVERSIFIED - Continued
4,400 WICOR, Inc..................... $ 202,950
------------
1,875,280
------------
OIL - INTEGRATED DOMESTIC - 0.21%
5,250 Cross Timbers Oil Co........... 121,734
12,700 Quaker State Corp.............. 195,263
9,100* Tesoro Petroleum Corp.......... 151,288
------------
468,285
------------
OIL - SERVICE - PRODUCTS - 0.82%
7,950* Barrett Resources Corp......... 235,519
3,100 Getty Petroleum Corp........... 60,062
5,800* Global Industrial
Technologies, Inc............. 103,675
13,000* Global Industries, Inc......... 208,000
32,300* Kelley Oil & Gas Corp.......... 94,881
5,100* Lone Star Technologies, Inc.... 147,900
1,500* Maverick Tube Corp............. 42,844
20,100* Parker Drilling Co............. 265,069
12,100 Pride International, Inc....... 334,263
4,900* Trico Marine Services, Inc..... 136,281
4,163* Varco International, Inc....... 213,094
------------
1,841,588
------------
OIL - SERVICES - 0.73%
3,800* Cliffs Drilling Co............. 210,900
2,400* Key Energy Group, Inc.......... 58,350
6,400 Lomak Petroleum, Inc........... 111,200
13,900* Marine Drilling Companies, Inc. 316,225
7,200 Mascotech, Inc................. 124,650
6,500* Oceaneering International, Inc. 134,063
7,100* Offshore Logistics, Inc........ 159,750
5,850 Pennsylvania Enterprises, Inc.. 147,347
4,800* Pool Energy Services Co........ 124,200
10,700* Tuboscope Inc.................. 263,488
------------
1,650,173
------------
OIL/GAS PRODUCERS - 1.84%
3,800* Atwood Oceanics, Inc........... 187,387
8,300* Benton Oil and Gas Co.......... 119,831
4,500 Berry Petroleum Co. Class A.... 84,094
7,600 Cabot Oil & Gas Corp. Class A.. 157,700
9,500 Chesapeake Energy Corp......... 73,031
4,200* Comstock Resources, Inc........ 55,125
6,700 Devon Energy Corp.............. 260,462
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
OIL/GAS PRODUCERS - Continued
3,000* DLB Oil & Gas, Inc............. $ 34,500
10,100 Equitable Resources, Inc....... 326,988
3,700* Forcenergy, Inc................ 114,931
8,000* Forest Oil Corp................ 127,500
23,100* Grey Wolf, Inc................. 142,931
21,900* Harken Energy Corp............. 121,819
1,400 Holly Corp..................... 37,800
5,200* Hugoton Energy Corp............ 50,375
9,200* Input/Output, Inc.............. 238,050
5,900 KCS Energy, Inc................ 140,125
2,800* Louis Dreyfus Natural Gas Corp. 57,925
8,500* Newfield Exploration Co........ 198,156
6,100* Nuevo Energy Co................ 254,294
3,000* Ocean Energy, Inc.............. 167,812
3,000* Patterson Energy, Inc.......... 110,250
3,300* Plains Resources, Inc.......... 54,450
6,900 Snyder Oil Corp................ 137,137
3,400 St. Mary Land & Exploration.... 140,675
4,200* Stone Energy Corp.............. 120,750
5,610* Swift Energy Co................ 122,017
6,800* Titan Exploration, Inc......... 80,750
8,200* Tom Brown, Inc................. 179,887
3,800* Unit Corp...................... 41,563
10,800 Vintage Petroleum, Inc......... 209,250
------------
4,147,565
------------
PAPER/FOREST PRODUCTS - 0.64%
5,800* American Pad & Paper Co........ 84,100
3,600* Buckeye Technologies Inc....... 157,725
6,300 Caraustar Industries, Inc...... 203,569
12,600 Longview Fibre Co.............. 203,175
5,239 Mosinee Paper Corp............. 155,860
6,000 P. H. Glatfelter Co............ 114,750
4,700 Pope & Talbot, Inc............. 77,550
4,000 Schweitzer-Mauduit
International Inc............. 142,000
3,700 Standard Register Co........... 126,725
2,300 Universal Forest Products, Inc. 35,075
7,000 Wausau Paper Mills Co.......... 150,063
------------
1,450,592
------------
PHOTOGRAPHY - 0.24%
3,700 CPI Corp....................... 68,913
6,600* Panavision, Inc................ 151,800
3,050* Photronics Inc................. 145,638
2,000* Seattle Filmworks, Inc......... 19,750
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 32
================================================================================
30 SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
PHOTOGRAPHY - Continued
5,900* Ultratech Stepper, Inc......... $ 145,288
------------
531,389
------------
POLLUTION CONTROL - 0.99%
22,500* Allied Waste Industries, Inc... 492,187
8,700 Calgon Carbon Corp............. 95,700
3,450* Cuno, Inc...................... 58,219
7,700 Dames & Moore, Inc............. 95,288
546 Heidemij NV.................... 6,006
15,200* Laidlaw Environmental
Services Inc.................. 68,400
1,625 Mine Safety Appliances Co...... 108,063
19,000* Newpark Resources, Inc......... 378,813
5,200* OHM Corp....................... 44,200
14,300 Safety-Kleen Corp.............. 396,825
5,600* Superior Services, Inc......... 132,300
5,200* Tetra Tech, Inc................ 132,925
6,600* Thermo TerraTech, Inc.......... 57,338
4,900 Zurn Industries, Inc........... 167,825
------------
2,234,089
------------
PUBLISHING - NEWS - 0.20%
4,700 Media General, Inc. Class A.... 200,338
7,400* Network Equipment
Technologies, Inc............. 107,763
2,633 Pulitzer Publishing Co......... 143,663
------------
451,764
------------
PUBLISHING/PRINTING - 1.18%
5,500 American Business
Products, Inc................. 114,125
7,750 Banta Corp..................... 193,750
700* Berlitz International, Inc..... 18,069
6,000* Big Flower Press Holdings,
Inc........................... 131,625
4,300 Bowne & Co., Inc............... 164,206
2,900* Consolidated Graphics, Inc..... 138,656
1,700* Devon Group, Inc............... 70,550
8,700* Golden Books Family
Entertainment, Inc............ 81,563
7,000 Houghton Mifflin Co............ 260,750
7,700 John H. Harland Co............. 159,294
3,300 John Wiley & Sons, Inc.
Class A....................... 150,769
10,500* Journal Register Co............ 177,844
5,975 McClatchy Newspapers, Inc.
Class A....................... 171,781
5,600 Merrill Corp................... 112,700
4,700 New England Business Service,
Inc........................... 148,931
4,200* Scholastic Corp................ 160,388
2,800* Scientific Games Holdings
Corp.......................... 58,975
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
PUBLISHING/PRINTING - Continued
1,700* Steck-Vaughn Publishing Corp... $ 25,394
2,909 Thomas Nelson, Inc............. 32,908
14,400* Topps Co. Inc.................. 36,900
900 Waverly, Inc................... 38,250
7,900* World Color Press, Inc......... 211,325
------------
2,658,753
------------
RAILROAD - 0.09%
1,200 Florida East Coast
Industries, Inc............... 113,400
3,300* Motivepower Industries, Inc.... 87,450
------------
200,850
------------
REAL ESTATE - 0.60%
2,300* Avatar Holdings, Inc........... 64,400
3,800* Castle & Cooke, Inc............ 63,175
3,700* CB Commercial Real Estate...... 123,487
5,675 Cousins Properties, Inc........ 171,669
2,100 Forest City Enterprises, Inc.
Class A....................... 119,963
7,200* Grubb & Ellis Co............... 89,550
7,600* Insignia Financial Group, Inc.
Class A....................... 150,100
7,100 LNR Property Corp.............. 165,075
8,800 Merry Land & Investment Co.,
Inc........................... 206,250
7,468 Republic Bancorp Inc........... 128,821
2,100 Tejon Ranch Co................. 60,900
------------
1,343,390
------------
REAL ESTATE INVESTMENT TRUSTS - 7.17%
6,100 Allied Capital Commercial Corp. 195,200
4,200 American General Hospitality... 113,925
5,300 American Health Properties
Com-Core Group................ 137,800
7,000 Amli Residential Properties.... 161,000
6,000 Apartment Investment &
Management Co. Class A........ 212,250
7,400 Arden Realty, Inc.............. 225,237
2,800 Associated Estates Realty Corp. 63,175
7,300 Avalon Properties, Inc......... 224,475
8,600 Bay Apartment Communities, Inc. 343,462
9,200 Berkshire Realty Co., Inc...... 104,650
5,373 Bradley Real Estate, Inc....... 108,803
8,230 BRE Properties, Inc. Class A... 236,612
2,300 Burnham Pacific Properties,
Inc........................... 32,919
11,200 Cali Realty Corp............... 444,500
10,928 Camden Poperty Trust........... 357,209
10,750 Capstead Mortgage Corp......... 271,438
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS - Continued
6,500 Capstone Capital Corp.......... $ 153,563
5,400 CBL & Associates Properties,
Inc........................... 129,937
2,800 CenterPoint Properties Corp.... 92,750
5,200 Charles E. Smith
Residential Realty, Inc....... 179,400
3,800 Chateau Communities, Inc....... 115,900
3,200 Chelsea GCA Properties......... 121,600
6,500 Colonial Properties Trust...... 186,469
9,800 Commercial Net Lease Realty,
Inc........................... 158,025
10,200 Cornerstone Properties, Inc.... 196,987
10,800 Cornerstone Realty Income...... 123,525
7,800 Criimi Mae, Inc................ 115,538
6,100 Crown American Realty Trust.... 54,519
7,200 Developers Diversified
Realty Corp................... 280,350
10,400 Dynex Capital, Inc............. 144,300
12,500 Equity Inns, Inc............... 189,844
4,900 Essex Property Trust, Inc...... 177,012
4,500 Evans Withycombe Residential,
Inc........................... 111,937
3,900 Excel Realty Trust, Inc........ 118,950
13,400 Federal Realty Investment
Trust......................... 337,512
7,600 FelCor Suite Hotels, Inc....... 275,975
11,100 First Industrial Realty Trust,
Inc........................... 391,969
3,500 First Union Real Estate........ 52,062
8,100 Franchise Finance Corp. of
America....................... 214,650
4,800 Gables Residential Trust....... 130,500
7,000 General Growth Properties,
Inc........................... 258,125
3,400 Glenborough Realty Trust, Inc.. 91,800
5,800 Glimcher Realty Trust.......... 127,237
7,100 Health Care Property
Investors, Inc................ 280,450
3,500 Health Care REIT, Inc.......... 89,469
3,500 Healthcare Realty Trust, Inc... 102,375
9,100 Highwoods Properties, Inc...... 327,031
2,600 Home Properties of NY, Inc..... 69,062
3,892 Horizon Group, Inc............. 46,218
5,300 Hospitality Properties Trust... 188,481
15,300 INMC Mortgage Holdings, Inc.... 347,119
3,700 Innkeepers USA Trust........... 59,431
11,300 IRT Property Co................ 136,306
4,100 Irvine Apartment Communities,
Inc........................... 127,356
5,400 JDN Realty Corp................ 167,737
3,300 JP Realty, Inc................. 82,500
4,400 Kilroy Realty Corp............. 115,500
7,200 Koger Equity, Inc.............. 150,300
7,200 Liberty Property Trust......... 201,150
5,800 LTC Properties, Inc............ 118,537
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 33
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 31
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS - Continued
3,500 Macerich Co.................... $ 94,938
8,500 Manufactured Home
Communities, Inc.............. 231,625
3,200 MGI Properties................. 74,200
5,300 Mid-America Apartment
Communities, Inc.............. 146,412
8,800 Mills Corp..................... 243,650
4,300 National Golf Properties, Inc.. 136,525
5,600 National Health Investors, Inc. 222,600
10,500 Nationwide Health Properties,
Inc........................... 248,062
7,000 Oasis Residential, Inc......... 152,687
6,300 Ocwen Asset Investment Corp.... 114,581
4,586 Omega Healthcare Investors,
Inc........................... 165,956
4,500 Pennsylvania Real Estate
Investment Trust.............. 107,719
9,482 Post Properties, Inc........... 366,242
7,000 Prentiss Properties Trust...... 181,125
4,700 Price REIT, Inc................ 185,650
1,700 Prime Retail, Inc.............. 24,544
5,800 Realty Income Corp............. 151,887
7,400 Reckson Associates Realty
Corp.......................... 196,562
2,500 Redwood Trust, Inc............. 63,281
5,300 Regency Realty Corp............ 140,781
9,000 RFS Hotel Investors, Inc....... 171,000
2,900 Saul Centers, Inc.............. 51,113
5,200 Security Capital Atlantic,
Inc........................... 112,450
369 Security Capital Group
Warrants...................... 1,983
6,800 Shurgard Storage Centers, Inc.
Class A....................... 187,425
324 SLH Corp....................... 17,496
1,600 Sovran Self Storage, Inc....... 48,800
5,800 Storage Trust Realty........... 144,275
6,200 Storage USA, Inc............... 242,188
5,600 Summit Properties, Inc......... 116,200
3,900 Sun Communities, Inc........... 142,106
4,100 Sunstone Hotel Investors, Inc.. 72,006
7,700 Taubman Centers, Inc........... 95,288
6,200 Thornburg Mortgage Asset Corp.. 121,675
3,900 Town & Country Trust........... 69,225
3,600 TriNet Corporate Realty Trust,
Inc........................... 138,600
3,600 Universal Health Realty
Income Trust.................. 75,375
7,100 Urban Shopping Centers, Inc.... 236,519
6,300 Walden Residential
Properties, Inc............... 153,563
7,900 Washington Real Estate
Investment Trust.............. 128,375
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS - Continued
5,100 Weeks Corp..................... $ 163,200
4,300 Western Investment Real
Estate Trust.................. 59,125
------------
16,169,127
------------
RESTAURANTS - 1.48%
7,562 Apple South, Inc............... 138,952
7,850 Applebees International, Inc... 165,831
10,400 Bob Evans Farms, Inc........... 208,000
17,100* Brinker International, Inc..... 252,225
14,880* Buffets, Inc................... 132,060
9,650 CKE Restaurants, Inc........... 362,478
9,900* Foodmaker, Inc................. 153,450
4,300* International Dairy Queen,
Inc Class A................... 113,412
7,100* Landrys Seafood Restaurants,
Inc........................... 199,687
7,600* Lone Star Steakhouse & Saloon.. 141,550
5,900 Luby's Cafeterias, Inc......... 116,525
2,700 Morrison Health Care, Inc...... 48,263
6,800* NPC International, Inc......... 90,525
4,625* Papa Johns International, Inc.. 153,781
5,200* Rainforest Cafe, Inc........... 187,200
5,900* Ruby Tuesday, Inc.............. 154,875
15,600* Ryan's Family Steak Houses,
Inc........................... 138,450
5,000 Sbarro, Inc.................... 140,000
16,200* Shoney's, Inc.................. 70,875
4,750* Sonic Corp..................... 131,367
2,800* The Cheesecake Factory......... 86,100
6,100* Triarc Companies Inc. Class A.. 145,638
------------
3,331,244
------------
SAVINGS & LOAN - 1.72%
5,020 ALBANK Financial Corp.......... 232,175
6,540 Astoria Financial Corp......... 360,517
6,000 Bay View Capital Corp.......... 202,500
1,200 CFX Corp....................... 33,300
4,100 CitFed Bancorp, Inc............ 207,562
5,200* Coast Savings Financial, Inc... 312,000
5,200 Dime Community Bancorp, Inc.... 120,900
4,910 Downey Financial Corp.......... 135,025
4,500* FirstFed Financial Corp........ 164,250
4,000 HFNC Financial Corp............ 59,500
2,900 JSB Financial, Inc............. 135,212
2,600 Klamath First Bancorp.......... 56,875
7,600 Long Island Bancorp, Inc....... 358,150
4,132 MAF Bancorp, Inc............... 134,290
3,000 ML Bancorp Inc................. 86,250
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
SAVINGS & LOAN - Continued
6,224 Peoples Heritage Financial
Group, Inc.................... $ 265,298
3,631 Provident Bankshares Corp...... 215,137
3,748 Queens County Bancorp, Inc..... 131,180
23,017 Sovereign Bancorp, Inc......... 435,885
7,100 TR Financial Corp.............. 233,412
------------
3,879,418
------------
SECURITIES RELATED - 1.23%
7,800* E*Trade Group, Inc............. 195,488
3,100 Enhanced Financial Services
Group Inc..................... 173,213
8,017 Financial Security Assurance
Holding Ltd................... 351,746
3,600* Hambrecht & Quist Group........ 138,150
3,300 Interra Financial, Inc......... 182,119
2,900 Investors Financial Services
Corp.......................... 121,800
199 Investors Financial Services
Corp. Class A................. 7,263
2,400 Jefferies Group, Inc........... 170,100
5,133 Legg Mason, Inc................ 248,309
6,600 McDonald & Co Investments,
Inc........................... 177,787
9,150 Morgan Keegan, Inc............. 183,572
5,400 Pioneer Group, Inc............. 169,425
4,900 Piper Jaffray Companies, Inc... 135,669
5,031 Quick & Reilly Group Inc....... 188,977
6,100 Raymond James Financial Inc.... 217,694
1,700* White River Corp............... 117,300
------------
2,778,612
------------
SEMICONDUCTORS - 1.50%
6,300* Actel Corp..................... 92,925
6,200* Alliance Semiconductor Corp.... 39,137
4,800* Altron, Inc.................... 75,600
3,600* Anadigics, Inc................. 119,700
3,000* ATMI Inc....................... 96,375
6,200* Burr Brown Corp................ 187,550
8,000* Chips & Technologies, Inc...... 123,500
13,400* Cirrus Logic, Inc.............. 177,550
3,100 Cohu, Inc...................... 110,050
5,550* Credence Systems Corp.......... 148,809
6,200* Cymer Inc...................... 118,963
11,100* DSP Communications, Inc........ 177,600
4,300* Electroglas, Inc............... 81,700
5,300* ESS Technology, Inc............ 53,000
5,700* Etec Systems, Inc.............. 260,775
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 34
================================================================================
32 SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
SEMICONDUCTORS - Continued
8,000* FSI International, Inc......... $ 121,500
2,900* Fusion Systems Corp............ 3,263
11,000* International Rectifier Corp... 155,375
5,100* Level One Communications, Inc.. 212,925
4,600* MRV Communications, Inc........ 129,950
3,960* National Semiconductor Corp.... 131,175
11,000* Ramtron International Corp..... 70,813
2,950* SDL, Inc....................... 49,044
7,400* Silicon Valley Group Inc....... 175,750
3,400* Siliconix, Inc................. 164,050
1,600* Speedfam International, Inc.... 41,000
2,700* Triquint Semiconductor, Inc.... 54,000
6,200* Unitrode Corp.................. 116,638
5,350* Zilog, Inc..................... 102,319
------------
3,391,036
------------
TELECOMMUNICATIONS - 3.15%
7,100 ABM Industries, Inc............ 197,912
3,700* ACC Corp....................... 172,975
4,000* Adtran, Inc.................... 143,500
4,600* Aerial Communications, Inc..... 41,687
14,100* Aspect Telecommunications Co... 316,369
9,100* Brooks Fiber Properties, Inc... 498,225
825* Cable Michigan, Inc............ 16,655
10,300* CellNet Data Systems, Inc...... 86,263
4,200* CellStar Corp.................. 108,675
3,500* Cellular Communications
International, Inc............ 152,250
8,180* Cellular Technical Services
Inc........................... 22,495
4,800* Centennial Cellular Corp.
Class A....................... 91,800
3,700* Cidco, Inc..................... 74,925
700* CKS Group, Inc................. 9,275
3,500* Coherent Communications
Systems Corp.................. 96,031
4,500* CommNet Cellular, Inc.......... 158,906
10,500 COMSAT Corp.................... 240,188
3,200* CoreComm Inc................... 42,000
13,400* Glenayre Technologies, Inc..... 145,725
1,699* Hearst-Argyle Television, Inc.. 49,696
7,100* HighwayMaster Communications,
Inc........................... 45,262
5,200 Inter-Tel, Inc................. 109,200
5,400* InterVoice, Inc................ 52,313
4,300* Itron, Inc..................... 77,400
5,000* IXC Communications, Inc........ 173,437
2,750* MasTec, Inc.................... 70,125
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS - Continued
8,000* McLeodUSA, Inc. Class A........ $ 296,000
2,794* Millicom International
Cellular S.A.................. 104,077
12,400* Mobile Telecommunications
Technologies Corp............. 215,450
3,200* Natural Microsystems Corp...... 152,000
1,600 North Pittsburgh Systems....... 28,100
6,766 NTL Inc........................ 190,294
7,300* Omnipoint Corp................. 154,213
1,900* Pacific Gateway Exchange, Inc.. 73,863
12,500* PageMart Wireless, Inc.
Class A....................... 123,437
29,700* Paging Network, Inc............ 358,256
4,400* Plantronics, Inc............... 163,350
4,500* Premier Technologies, Inc...... 107,438
7,200* Premisys Communications Inc.... 198,450
6,640* PriCellular Class A............ 71,380
3,500* Proxim, Inc.................... 42,000
1,200* Quintel Entertainment, Inc..... 6,900
3,300* RCN Corp....................... 108,075
4,700* Sanmina Corp................... 319,600
4,800* Symmetricom, Inc............... 61,800
1,800* Tekelec........................ 68,175
7,200* Tel-Save Holdings, Inc......... 155,700
4,100* Transaction Network
Services, Inc................. 71,750
6,200* USLD Communications Corp....... 128,650
8,200* Vanguard Cellular Systems,
Inc. Class A.................. 114,287
16,100* Western Wireless Corp.
Class A....................... 299,863
8,800* WinStar Communications, Inc.... 232,650
8,600 Wireless Telecom Group......... 61,813
------------
7,100,860
------------
TEXTILE - PRODUCTS - 0.63%
14,200* Burlington Industries, Inc..... 205,900
6,100* Cone Mills Corp................ 48,038
4,100 Culp, Inc...................... 76,363
5,500* Fabri-Centers of America, Inc.
Class A....................... 115,156
4,750 G & K Services, Inc. Class A... 174,563
7,650 Guilford Mills, Inc............ 193,641
6,600* Lydall, Inc.................... 133,650
5,400* Mohawk Industries, Inc......... 163,350
3,200 Springs Industries, Inc.
Class A....................... 161,400
6,800 Wellman, Inc................... 144,075
------------
1,416,136
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
TOBACCO - 0.18%
3,000 Cons Cigar Holdings Inc........ $ 82,687
9,500 DIMON, Inc..................... 237,500
3,601* General Cigar Holdings, Inc.... 84,623
8,400* Mafco Consolidated Group Inc... 3,413
------------
408,223
------------
TRUCKERS - 0.75%
7,500* American Freightways Corp...... 107,812
4,950 Arnold Industries, Inc......... 88,481
7,800* Consolidated Freightways Corp.. 121,875
5,832* Heartland Express, Inc......... 137,781
500* Knight Transportation, Inc..... 13,719
5,200* Landstar System, Inc........... 134,875
2,300* M.S. Carriers, Inc............. 55,487
3,100 Roadway Express, Inc........... 83,700
12,575 Rollins Truck Leasing Corp..... 211,417
4,600* Swift Transportation Co., Inc.. 127,650
5,600 USFreightways Corp............. 172,200
3,750 Werner Enterprises, Inc........ 80,156
3,700 Xtra Corp...................... 195,175
6,500* Yellow Corp.................... 171,438
------------
1,701,766
------------
UTILITIES - COMMUNICATION - 0.2 8%
9,200 Aliant Communications, Inc..... 278,300
3,200 CFW Communications Co.......... 72,800
4,666* Commonwealth Telephone
Enterprise.................... 135,314
5,178 PXRE Corp...................... 153,075
------------
639,489
------------
UTILITIES - ELECTRIC - 1.90%
13,100 Atlantic Energy, Inc........... 263,637
3,600 Black Hills Corp............... 114,525
5,600 Central Louisiana Electric
Co., Inc...................... 162,750
8,100 Central Maine Power Co......... 114,412
3,400 CILCORP, Inc................... 149,175
4,600 Commonwealth Energy System
Companies..................... 131,387
11,500 Delmarva Power & Light Co...... 242,937
9,300 Eastern Utilities Associates... 223,200
15,100* El Paso Electric Co............ 101,925
4,100 Empire District Electric Co.... 77,131
5,700 Hawaiian Electric Industries,
Inc........................... 221,944
5,600 Indiana Energy, Inc............ 157,500
3,200 Interstate Power Co............ 106,200
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 35
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED 33
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
UTILITIES - ELECTRIC - Continued
7,525 Madison Gas & Electric Co...... $ 153,322
6,300 Minnesota Power & Light Co..... 243,731
11,600 Nevada Power Co................ 268,975
2,875 Otter Tail Power Co............ 99,906
10,400 Public Service Co. of New
Mexico........................ 212,550
9,300 Rochester Gas & Electric Corp.. 255,750
5,950 SIG Corp, Inc.................. 159,163
2,700 TNP Enterprises, Inc........... 74,250
8,020* Tuscon Electric Power Co....... 139,348
3,700 United Illuminating Co......... 150,775
10,500 Washington Gas Light Co........ 281,531
5,900 WPL Holdings, Inc.............. 179,950
------------
4,285,974
------------
UTILITIES - GAS, DISTRIBUTION - 0.73%
12,700 AGL Resources, Inc............. 249,237
2,200 Colonial Gas Co................ 55,137
2,200 Connecticut Energy Corp........ 56,925
2,700 Connecticut Natural Gas Corp... 65,137
4,300 Energen Corp................... 163,400
9,200* National-Oilwell, Inc.......... 291,525
5,600 Northwest Natural Gas Co....... 156,800
1,200 NUI Corp....................... 29,550
7,400 Piedmont Natural Gas Co., Inc.. 241,887
7,800 Public Service Co. of
North Carolina, Inc........... 157,950
9,900 Southwestern Energy Co......... 115,706
2,550 Yankee Energy Systems, Inc..... 60,403
------------
1,643,657
------------
UTILITIES - GAS, PIPELINE - 0.12%
1,600 North Carolina Natural Gas
Corp.......................... 53,000
5,900 ONEOK Inc...................... 220,513
------------
273,513
------------
UTILITIES - MISCELLANEOUS - 0.72%
4,400 Central Hudson Gas & Electric
Corp.......................... 169,400
7,000 IES Industries, Inc............ 245,438
7,150 MDU Resources Group, Inc....... 213,606
8,100 Northwestern Public Service Co. 168,581
3,500 Orange and Rockland Utilities,
Inc........................... 139,781
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
UTILITIES - MISCELLANEOUS - Continued
7,700 Sierra Pacific Resources....... $ 260,837
2,900 Trigen Energy Corp............. 66,519
9,000* Walter Industries, Inc......... 178,875
5,600 WPS Resources Corp............. 169,750
------------
1,612,787
------------
WATER SERVICES - 0.26%
3,000 Aquarion Co.................... 91,125
1,400 California Water Service Co.... 74,900
1,900 E'Town Corp.................... 67,094
7,950 Philadelphia Suburban Corp..... 197,259
2,150 Southern California Water Co... 48,509
6,200 United Water Resources......... 111,600
------------
590,487
------------
TOTAL COMMON STOCKS
(Cost $176,254,670)............ 220,506,813
------------
PAR
VALUE
- -----------------------------------------------------------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 1.89%
SECURITIES RELATED - 1.89%
$4,262,000 Merrill Lynch & Co., Inc.
5.73% due 12/1/97............. 4,262,000
------------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $4,262,000).............. 4,262,000
------------
UNITED STATES GOVERNMENT
SHORT TERM - 0.11%
U. S. TREASURY BILLS - 0.11%
United States Treasury Bills,
100,000 4.69% due 12/11/97............ 99,870
150,000 4.67% due 12/11/97............ 149,804
------------
TOTAL UNITED STATES GOVERNMENT
SHORT TERM
(Cost $249,674)................ 249,674
------------
MARKET
VALUE
- -----------------------------------------------------------
TOTAL INVESTMENTS
(Cost $180,766,344) - 99.81%... $225,018,487
Other assets and liabilities,
net - 0.19%................... 436,520
------------
NET ASSETS (equivalent
to $18.32 per share on
12,309,654 shares
outstanding ) - 100%........... $225,455,007
============
* Non-income producing
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS DEPRECIATION
- -----------------------------------------------------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/97)
18(2) Russell 2000 Index Futures
(December/$431.85)............ $ (66,925)
============
(1)U.S.Treasury Bills with a market value of approximately $250,000
were maintained in a segregated account with a portion placed as
collateral for futures contracts.
(2)Per 500
- --------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
12,309,654 shares outstanding........... $ 123,097
Additional paid in capital................ 149,218,449
Undistributed net realized gain on
securities.............................. 31,885,016
Undistributed net investment income....... 43,227
Unrealized appreciation (depreciation) of:
Investments........... $44,252,143
Futures .............. (66,925) 44,185,218
------------ ------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................. $225,455,007
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 36
================================================================================
34 SMALL CAP INDEX FUND - FINANCIAL STATEMENTS (Unaudited)
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................ $ 1,361,332
Interest............................................................. 244,424
------------
Total investment income............................................ 1,605,756
------------
EXPENSES:
Advisory fees........................................................ 378,414
Custodian and accounting services.................................... 27,298
Reports to shareholders.............................................. 12,954
Audit fees and tax services.......................................... 2,370
Directors' fees and expenses......................................... 2,509
Miscellaneous........................................................ 4,453
------------
Total expenses..................................................... 427,998
------------
NET INVESTMENT INCOME................................................ 1,177,758
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on:
Investments.......................................... $13,960,776
Futures contracts.................................... 823,030 14,783,806
-----------
Net unrealized appreciation (depreciation)
during the period: Investments....................... 10,574,309
Futures contracts.................................... (378,925) 10,195,384
----------- ------------
Net realized and unrealized gain on securities during the period...... 24,979,190
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......................... $ 26,156,948
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ....................................... $ 1,177,758 $ 2,388,474
Net realized gain on securities ............................. 14,783,806 17,523,137
Net unrealized appreciation (depreciation) of securities
during the period ......................................... 10,195,384 (6,382,053)
------------- -------------
Increase in net assets resulting from operations .......... 26,156,948 13,529,558
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ....................................... (1,153,176) (2,385,945)
Net realized gain on securities ............................. -- (11,216,991)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders .......................................... (1,153,176) (13,602,936)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ............................ 21,597,002 20,665,121
Proceeds from capital stock issued for distributions
reinvested ............................................... 1,153,176 13,602,936
------------- -------------
22,750,178 34,268,057
Cost of capital stock repurchased ........................... (14,757,686) (22,521,418)
------------- -------------
Increase in net assets resulting from capital
stock transactions ....................................... 7,992,492 11,746,639
------------- -------------
TOTAL INCREASE IN NET ASSETS ................................ 32,996,264 11,673,261
NET ASSETS:
Beginning of period ......................................... 192,458,743 180,785,482
------------- -------------
End of period (including undistributed net investment
income of $43,227 and $18,645) ........................... $ 225,455,007 $ 192,458,743
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ................................ 1,175,201 1,339,448
Shares issued for distributions reinvested .................. 64,240 890,371
Shares of capital stock repurchased ......................... (823,111) (1,465,127)
------------- -------------
Increase in shares outstanding ............................ 416,330 764,692
Shares outstanding:
Beginning of period ....................................... 11,893,324 11,128,632
------------- -------------
End of period ............................................. 12,309,654 11,893,324
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 37
================================================================================
INTERNATIONAL EQUITIES FUND - STATEMENT OF NET ASSETS 35
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 98.32%
AEROSPACE/DEFENSE - 0.27%
15,264 British Aerospace.............. $ 416,595
------------
AIRLINES - 0.81%
4,100 British Airways plc - ADR...... 375,150
40,000* Japan Air Lines Co. Ltd........ 124,427
25,000 Lufthansa Ag................... 474,908
60,000 Malay Airline System Bhd....... 44,162
35,000 Singapore Airlines............. 228,321
------------
1,246,968
------------
APPAREL & PRODUCTS - 0.40%
20,000 Onward Kashiyama Co., Ltd...... 282,076
163,039 Pacific Dunlop Ltd............. 333,994
------------
616,070
------------
APPLIANCES/FURNISHINGS - 1.84%
50,000 Brother Industries............. 110,872
22,000 Matsushita Electric Industrial
Co. Ltd....................... 343,036
4,200 Matsushita Electric Industrial
Co. Ltd. - ADR ............... 651,263
10,000 Philips Electronics NV......... 660,695
33,000 Sanyo Electric Co. Ltd......... 93,085
3,400 Sanyo Electric Co. Ltd. - ADR.. 47,600
10,970 Sony Corp - ADR................ 915,995
------------
2,822,546
------------
AUTO - CARS - 4.50%
20,000 Daimler-Benz AG - ADR.......... 1,412,500
50,000 Fiat S.p.A..................... 144,423
16,500 Fiat S.p.A. - ADR.............. 235,125
12,500 Honda Motor Co., Ltd. - ADR.... 888,281
35,000 Nissan Motor Co., Ltd.......... 152,204
18,000 Nissan Motor Co., Ltd. - ADR... 163,125
500 Peugeot Citroen SA............. 56,494
98,000 Toyota Motor Corp.............. 2,825,779
3,519 Toyota Motor Corp. - ADR....... 201,903
500 Volkswagen Ag.................. 283,527
20,000 Volvo AB....................... 533,575
------------
6,896,936
------------
AUTO - ORIGINAL EQUIPMENT - 0.09%
25,000 Calsonic Corp.................. 131,244
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
AUTO - REPLACEMENT PARTS - 1.35%
36,000 Bridgestone Corp............... $ 781,352
1,600 Bridgestone Corp. - ADR........ 347,267
5,550 Denso Corp..................... 405,297
10,093 Michelin (CGDE) Class B........ 543,691
------------
2,077,607
------------
BANKS - OTHER - 12.62%
60,000 AMMB Holdings BHD.............. 51,352
50,000 Asahi Bank Ltd................. 211,557
3,190 Asahi Bank Ltd. - ADR.......... 134,973
126,000 Bank of Tokyo - Mitsubishi..... 1,826,445
68,000 Bank of Yokohama Ltd........... 210,993
2,296 Bank of Yokohama Ltd. - ADR.... 71,241
38,287 Barclays plc................... 923,387
30,000 Bco Santander.................. 907,384
40,000 Chiba Bank Ltd................. 156,082
108,000 Commerce Asset Holding......... 57,925
11,250* Commerce Asset Holding
(Warrants).................... 1,220
250,000 DCB Holdings BHD............... 146,209
50,000* DCB Holdings BHD (Warrants).... 15,120
6,300 Den Danske Bank AF 1871 - ADR.. 747,818
27,500 Deutsche Bank AG - ADR......... 1,763,350
10,000 Development Bank of Singapore
Ltd........................... 94,088
13,625 Development Bank of Singapore
Ltd. - ADR ................... 513,333
25,000 Dresdner Bank AG - ADR......... 969,480
4,830 Fuji Bank Ltd. - ADR........... 259,240
25,000 Hang Seng Bank................. 219,914
5,180 HSBC Holdings plc - ADR........ 1,249,720
15,000 Industrial Bank of Japan Ltd... 133,986
25,000* Istituto Banco San Paolo Torino 207,084
13,500 Istituto Mobiliare Italiano
S.p.A.- ADR .................. 419,344
48,000 Joyo Bank...................... 192,564
165,488 Lloyds TSB Group plc........... 1,886,577
30,658 National Australia Bank Ltd.... 405,508
9,319 National Australia Bank Ltd.
- ADR......................... 621,461
10,412 National Westminster Bank plc.. 157,912
20,201 Royal Bank Scot Group.......... 232,340
98,000 Sakura Bank Ltd................ 342,472
2,000* Schweiz Bankverein............. 574,414
30,000 Shizuoka Bank.................. 277,375
74,000 Sumitomo Bank.................. 939,314
26,000 Tokai Bank..................... 139,549
2,225 Tokai Bank - ADR............... 238,844
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
BANKS - OTHER - Continued
1,300 Union Bank of Switzerland AG... $ 1,654,860
13,300 Westpac Banking Corp. Ltd.
- ADR......................... 412,300
------------
19,366,735
------------
BEVERAGE - BREWERS/
DISTRIBUTORS - 0.87%
38,800 Bass plc....................... 557,000
16,000 Kirin Brewery Co., Ltd......... 123,236
12,000 LVMH (Moet Hennessy Louis
Vuitton) - ADR ............... 418,500
45,000 Sapporo Breweries.............. 240,470
------------
1,339,206
------------
BROADCASTING - 0.33%
50,000 British Sky Broadcasting
Group plc..................... 371,558
764 Canal Plus..................... 132,914
------------
504,472
------------
BUILDING MATERIALS - 1.52%
20,000 Asahi Glass Co. Ltd............ 127,718
1,223 Cie De St Gobain............... 166,152
30,818 CRH plc........................ 361,468
2,505 Fletcher Challenge Building
Division ..................... 73,271
2,700 Glaverbel SA................... 384,394
725 Holderbank Finance Glarus...... 632,049
40,000 Inax Corp...................... 145,426
4,116 Lafarge SA..................... 271,923
15,000 Tostem Corp.................... 170,421
------------
2,332,822
------------
CHEMICAL - MAJOR - 1.15%
25,000 BASF AG........................ 884,604
10,000 Bayer AG....................... 370,116
10,000 Bayer AG - ADR................. 370,047
20,000 Sekisui Chemical............... 145,583
------------
1,770,350
------------
CHEMICAL - MISCELLANEOUS - 1.84%
13,603 Air Liquide - ADR.............. 428,126
5,100 Akzo Nobel N V- ADR............ 447,525
28,420 BOC Group plc.................. 453,586
7,500 Degussa Ag..................... 347,888
6,000 Imperial Chemical Industries
plc -ADR ..................... 356,625
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 38
================================================================================
36 INTERNATIONAL EQUITIES FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
CHEMICAL - MISCELLANEOUS - Continued
13,100 Shin Etsu Chemical Co.......... $ 311,013
50,000 Toray Industries Inc........... 227,228
5,500 Toray Industries Inc. - ADR.... 249,951
------------
2,821,942
------------
CONGLOMERATES - 1.90%
6,890 Broken Hill Proprietary Co.
Ltd. - ADR ................... 125,743
43,006 BTR plc........................ 149,261
37,426 BTR plc - ADR.................. 517,684
30,000 Hutchison Whampoa.............. 199,863
3,300 Itochu Corp. - ADR............. 85,586
71,250 Keppel Corp. Ltd............... 241,336
26,875 Keppel Corp. Ltd. - ADR........ 182,255
8,157 Lagardere Groupe............... 234,901
70,000 Marubeni Corp.................. 174,966
3,200 Marubeni Corp. - ADR........... 79,984
42,000 Mitsubishi Corp................ 327,773
50,000 Mitsui & Co.................... 347,502
60,000 Sime Darby Holdings Ltd........ 59,910
194,400 Sime Darby Holdings
Ltd. - ADR.................... 194,886
------------
2,921,650
------------
CONSUMER FINANCE - 0.03%
37,000 Nippon Shinpan Co.............. 44,936
------------
COSMETICS/TOILETRIES - 1.35%
1,100 Loreal Co...................... 421,121
15,400 Loreal Co. - ADR............... 1,179,098
34,490 Shiseido Ltd. - ADR............ 467,522
------------
2,067,741
------------
DRUGS - 7.96%
26,666 Astra AB....................... 462,766
55,400 Glaxo Wellcome plc - ADR....... 2,531,088
7,700 Kissei Pharmaceutical Co....... 103,169
1,600 Novartis Ag.................... 2,556,319
5,000 Ono Pharmaceutical............. 127,718
250 Roche Holdings AG.............. 2,237,341
10,000 Sankyo Co. Ltd................. 318,903
158,325 Smithkline Beecham............. 1,569,610
45,000 Takeda Chemical Industries
Ltd........................... 1,315,181
10,300 Zeneca Group plc - ADR......... 990,731
------------
12,212,826
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT - 1.69%
1,000 Barco.......................... $ 186,893
58,000 Delta plc...................... 257,870
15,000 Fanuc.......................... 564,153
30,000 Fujikura....................... 216,023
84,000 General Electric plc........... 546,900
10,400 General Electric plc - ADR..... 67,590
10,000 Murata Manufacturing Co........ 300,098
3,400 Sumitomo Electric Industries
Ltd. - ADR ................... 455,553
------------
2,595,080
------------
ELECTRONIC INSTRUMENTS - 2.41%
50,000 Hitachi Ltd.................... 354,554
8,550 Hitachi Ltd. - ADR............. 613,997
6,000 Kyocera Corp................... 289,598
25,000 NEC Corp....................... 264,447
5,100 NEC Corp. - ADR................ 269,662
50,000 Racal Electronics plc.......... 182,823
7,110 Schneider SA................... 380,594
8,000 Siemens AG..................... 469,748
12,000 Siemens AG - ADR............... 704,489
25,000 Yokogawa Electric.............. 164,153
------------
3,694,065
------------
FINANCE COMPANIES - 2.10%
20,000 Abbey National................. 319,202
63,000 ABN Amro Holdings N V.......... 1,201,480
126* Credit Local de France......... 13,084
8,182 Fortis Amev NV................. 338,429
20,180 ING Groep NV................... 820,482
3,984 Societe Generale............... 523,704
------------
3,216,381
------------
FOODS - 3.44%
25,000 Ajinomoto Inc.................. 227,228
1,900 Ajinomoto Inc. - ADR........... 172,693
21,799 Cadbury Schweppes plc.......... 226,421
3,929 Cadbury Schweppes plc - ADR.... 164,527
31,532 Coca-Cola Amatil Ltd........... 234,738
10,000 Daiei, Inc..................... 43,330
11,500 Daiei, Inc. - ADR.............. 83,375
100,000 Golden Hope Plantations........ 114,115
106,875 Grand Metropolitan............. 972,902
38,000 Nestle S A - ADR............... 2,795,983
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
FOODS - Continued
30,750 Tate & Lyle plc................ $ 243,569
------------
5,278,881
------------
FOOTWEAR - 0.41%
4,500 Adidas AG...................... 634,108
------------
FREIGHT - 0.59%
98,000* Mitsui Osk Lines Ltd........... 148,200
40,000 Nippon Yusen Kabushiki Kaish... 122,546
8,570 Nippon Yusen Kabushiki Kaish
- ADR......................... 262,556
33,599 P & O Steam Navigation......... 363,738
------------
897,040
------------
HOME BUILDERS - 0.18%
15,000 Daiwa House Industry Co. Ltd... 121,058
214 Sekisui Homes Ltd. - ADR....... 15,393
20,000 Sekisui House, Ltd............. 143,859
------------
280,310
------------
HOSPITAL SUPPLIES - 0.67%
2,000 Novo-Nordisk A/S............... 244,920
12,800 Novo-Nordisk A/S - ADR......... 786,400
------------
1,031,320
------------
HOUSEHOLD PRODUCTS - 0.69%
7,000 Katokichi Co................... 101,469
16,400 Unilever N V- ADR.............. 952,225
------------
1,053,694
------------
INFORMATION PROCESSING - 0.79%
14,000 Fujitsu Ltd.................... 156,866
7,200 Fujitsu Ltd. - ADR............. 403,369
2,250 SAP AG......................... 654,522
------------
1,214,757
------------
INSURANCE - CASUALTY - 0.26%
25,000 Mitsui Marine & Fire........... 123,408
50,000 Nippon Fire & Marine
Insurance..................... 154,750
25,000 Sumitomo Marine & Fire......... 126,347
------------
404,505
------------
INSURANCE - LIFE - 0.76%
66,012 Irish Life plc................. 341,152
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 39
================================================================================
INTERNATIONAL EQUITIES FUND - STATEMENT OF NET ASSETS CONTINUED 37
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
INSURANCE - LIFE - Continued
15,240 Prudential plc - ADR........... $ 822,285
------------
1,163,437
------------
INSURANCE - MULTILINE - 3.07%
3,000 Allianz AG..................... 711,936
23,549 Assic Generali................. 528,215
15,962 AXA............................ 1,158,356
7,000* Gan Group...................... 164,230
1,000 Munchener Ruckvers............. 312,447
54,014 Royal Sun Alliance............. 486,226
154,095 Sedgwick Group plc............. 325,314
4,000* Skandia Foersaekrings Ab....... 210,840
500 Swiss Reinsurance AG........... 816,734
------------
4,714,298
------------
LEISURE TIME - 1.56%
4,000 Canon, Inc. - ADR.............. 482,000
20,000 Fuji Photo..................... 719,295
152,542 Ladbroke Group plc............. 693,020
85,000 Rank Group..................... 495,988
------------
2,390,303
------------
LODGING - 0.25%
297,916 Hong Kong & Shanghai Hotels.... 256,283
22,916* Hong Kong & Shanghai Hotels
(Warrants) ................... 548
180,000 Hotel Properties............... 129,842
------------
386,673
------------
MACHINE TOOLS - 0.53%
35,000 Amada Co., Ltd................. 175,788
16,000 Makita Corp. - ADR............. 184,000
40,000 Minebea Co. Ltd................ 445,054
------------
804,842
------------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.87%
3,501* Algeco......................... 134,624
15,000 Bilfinger & Berger Bau AG...... 552,027
2,000* Jean Lefebvre SA............... 115,190
52,000 Kajima Corp.................... 171,126
2,340 Kajima Corp. - ADR............. 77,007
80,000* Kumagai Gumi Co................ 62,611
16,000* Kumagai Gumi Co. (Warrants).... 1,511
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
MACHINERY - CONSTRUCTION &
CONTRACTS - Continued
70,000 Shimizu Corp................... $ 224,878
------------
1,338,974
------------
MACHINERY - INDUSTRIAL/
SPECIALTY - 1.94%
10,000 Atlas Copco AB Series A........ 306,935
125 Bobst SA....................... 184,107
8,000 Ebara Corp..................... 89,011
2,530 Ebara Corp. - ADR.............. 281,496
100,000 Halma plc...................... 182,401
50,000 Kawasaki Heavy Industries...... 122,625
70,000 Kubota Corp.................... 241,881
1,350 Kubota Corp. - ADR............. 92,644
750* Man AG......................... 223,278
1,000 Mannesmann AG.................. 465,551
612 Rauma Oy....................... 10,561
79,662 Rolls Royce.................... 318,863
25,367 Siebe plc...................... 461,412
------------
2,980,765
------------
MEDICAL TECHNOLOGY - 0.03%
20,000* Instrumentation Laboratory
S. p. A....................... 40,000
------------
MERCHANDISE - SPECIALTY - 1.18%
42,066 BAA plc........................ 354,871
75,000* Dickson Concepts
International Ltd............. 140,680
10,000 Esselte AB Series B............ 206,566
35,000 Great Universal Stores plc..... 410,825
10,000 Hennes and Mauritz............. 462,345
1,500 Herlitz AG..................... 107,599
15,000 Takashimaya Co................. 119,883
------------
1,802,769
------------
MERCHANDISING - DEPARTMENT - 1.46%
500 Karstadt AG.................... 173,802
15,000 Marks & Spencer plc............ 154,281
25,033 Marks & Spencer plc - ADR...... 1,558,810
16,000 Marui Co., Ltd................. 250,735
36,000 Mitsukoshi Ltd................. 101,547
200 Mitsukoshi Ltd. - ADR.......... 5,642
------------
2,244,817
------------
MERCHANDISING - FOOD - 1.24%
15,607 Ahold Kon Nv................... 416,228
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
MERCHANDISING - FOOD - Continued
1,550 Carrefour SA................... $ 829,443
10,000 Delhaize-Le Lion, S.A.......... 505,710
15,000 Melco International Development
Limited ...................... 3,881
10,000 Uny Co. Ltd.................... 147,307
------------
1,902,569
------------
MERCHANDISING - MASS - 0.68%
32,666 Argos plc...................... 341,500
4,356 Familymart Co.................. 162,123
2,550 Ito-Yokado Co. Ltd. - ADR...... 457,088
20,000 Seiyu Ltd...................... 82,899
------------
1,043,610
------------
METALS - MISCELLANEOUS - 0.87%
200 Alusuisse Lonza Holdings....... 183,616
108,274 North Ltd...................... 277,626
8,062 Rio Tinto Limited - ADR........ 355,251
6,432 Rio Tinto plc.................. 77,670
6,700 Rio Tinto plc - ADR............ 328,300
37,031* Western Mining................. 118,468
------------
1,340,931
------------
METALS - STEEL - 1.24%
500 Bekaert SA..................... 310,915
36,700 British Steel plc.............. 85,691
2,000 British Steel plc - ADR........ 48,000
50,000* Cockerill Sambre............... 230,868
60,000 Kawasaki Steel................. 98,727
5,420 Kawasaki Steel - ADR........... 89,183
200,000 Nippon Steel Co................ 369,833
155,000 NKK Corp....................... 156,670
78,000 Sumitomo Metal Industries
Ltd........................... 158,903
7,400 Sumitomo Metal Industries
Ltd. - ADR ................... 150,753
50,000 Sumitomo Metal Mining.......... 199,021
------------
1,898,564
------------
MISCELLANEOUS - 0.33%
8,000 Secom Co....................... 501,469
------------
OIL - INTEGRATED INTERNATIONAL - 6.38%
29,905 British Petroleum Co. PLC - ADR 2,482,126
20,946 Elf Aquitaine SA - ADR......... 1,199,159
225,000 Eni S.p.A...................... 1,313,485
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 40
================================================================================
38 INTERNATIONAL EQUITIES FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
OIL - INTEGRATED INTERNATIONAL - Continued
10,000 Repsol S A - ADR............... $ 431,250
60,392 Royal Dutch Pete Co............ 3,181,904
11,207 Total.......................... 1,177,026
------------
9,784,950
------------
OIL/GAS PRODUCERS - 0.74%
2,505 Fletcher Challenge Energy
Division...................... 104,584
3,500 Norsk Hydro A/S - ADR.......... 181,344
3,000 OMV AG......................... 390,402
112,500 Santos Ltd..................... 464,765
------------
1,141,095
------------
PAPER/FOREST PRODUCTS - 0.81%
149,394 Fletcher Challenge Forest
Ltd........................... 137,331
4,326 Fletcher Challenge
Ltd. - ADR.................... 40,556
5,010 Fletcher Challenge Paper
Division...................... 65,130
22,000 New Oji Paper Co., Ltd......... 91,534
300 New Oji Paper Co.,
Ltd. - ADR.................... 12,482
60,000 Nippon Paper Industries........ 293,360
10,000* Stora Kopparbergs.............. 132,746
22,000 UPM - Kymmene Corp............. 472,488
------------
1,245,627
------------
PUBLISHING - NEWS - 1.13%
69,816 Independent Newspapers plc..... 409,440
22,500 News Corp Ltd. - ADR........... 487,969
50,000 Reuters Holdings plc........... 564,093
21,379 United News & Media plc........ 269,719
------------
1,731,221
------------
PUBLISHING/PRINTING - 0.59%
30,000 Dai Nippon Printing Co. Ltd.... 594,711
100,000* Seat S.p.A..................... 39,652
2,020 Wolters Kluwer NV.............. 267,429
------------
901,792
------------
RAILROAD - 0.99%
30,000 Fukuyama Transporting Co....... 122,233
90,000 Nagoya Railroad Co. Ltd........ 316,631
9,218 Nagoya Railroad Co. Ltd.
- ADR......................... 324,299
101,970 Odakyu Electric Railway Co.
Ltd........................... 491,374
60,000 Tokyu Corp..................... 256,219
------------
1,510,756
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
REAL ESTATE - 1.81%
41,427 Hammerson plc.................. $ 321,844
240,000 Hang Lung Development Co....... 364,798
63,000 Mitsubishi Estate Co. Ltd...... 730,578
35,000 Mitsui Fudosan................. 370,225
25,000 New World Development Co....... 92,655
82,600 Sun Hung Kai Properties Ltd.... 630,429
128,000 Wharf (Holdings) Ltd........... 260,792
------------
2,771,321
------------
SECURITIES RELATED - 0.87%
25,000 Daiwa Securities Co. Ltd....... 87,170
46,000 Mitsubishi Trust & Banking
Corp.......................... 612,733
3,800 Nomura Securities Co. Ltd.
- ADR......................... 470,440
160,000* Peregrine Investment Holdings
Ltd........................... 157,303
16,000* Peregrine Investment Holdings
Ltd.(Warrants)................ 207
------------
1,327,853
------------
TELECOMMUNICATIONS - 9.19%
35,000 British Telecommunications
plc........................... 270,140
16,379 British Telecommunications
plc - ADR .................... 1,277,562
45,924 Cable & Wireless plc........... 417,279
30,000 Deutsche Telekom............... 608,166
10,000* France Telecom................. 367,252
49,399 Hong Kong Telecommunications
Ltd.- ADR .................... 938,581
15,621 Kon Ptt Nederland.............. 627,261
300 Nippon Telephone & Telegraph
Corp.......................... 2,468,168
7,000 Nokia AB OY.................... 561,959
2,600 Telecom Corp. of New Zealand
Ltd.- ADR .................... 106,600
300,000 Telecom Italia Mobile.......... 1,214,719
186,111 Telecom Italia Spa............. 1,160,258
30,200 Telefonaktiebolage & LM
Ericsson Class B - ADR ....... 1,221,212
14,000 Telefonica de Espana........... 403,729
11,600 Telefonica de Espana - ADR..... 1,003,400
165,000 Telekom Malaysia Berhad........ 367,164
16,500 Vodafone Group plc - ADR....... 1,089,000
------------
14,102,450
------------
TEXTILE - PRODUCTS - 0.43%
20,000 Courtaulds Textiles plc........ 118,223
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
TEXTILE - PRODUCTS - Continued
4,000* DMC Dollfus Mieg............... $ 68,978
30,000 Marzotto & Figli S.p.A......... 321,262
15,000 Wacoal Corp.................... 145,740
------------
654,203
------------
TOBACCO - 0.87%
76,278 B.A.T. Industries plc......... 685,354
30,100 B.A.T. Industries plc - ADR... 547,444
32,000 Swedish Match AB............... 108,166
------------
1,340,964
------------
UTILITIES - ELECTRIC - 4.52%
155,000 China Light & Power.......... 781,988
48,000 Endesa S A..................... 900,000
6,500 Hidroel Cantabrico............. 299,041
30,000 Iberdrola SA................... 383,274
16,600 Kansai Electric Power
Co. Inc....................... 282,249
60,000 National Power................. 573,044
4,000 Oesterreichisch
Elektrizitatswirt Schafts -
AG Class A ................... 320,400
10,000 RWE AG - ADR................... 490,126
48,488 Scottish Power plc............. 393,079
145,000 Tenaga Nasional Berhad......... 268,882
25,200 Tokyo Electric Power........... 452,168
30,000 VEBA AG........................ 1,782,818
------------
6,927,069
------------
UTILITIES - GAS, DISTRIBUTION - 0.32%
44,117 Bg............................. 211,606
127,000 Osaka Gas Co................... 283,605
------------
495,211
------------
WATER SERVICES - 1.60%
7,349 Eaux (Cie Generale)............ 971,020
10,196* Eaux (Cie Generale)
(Warrants).................... 6,235
21,147 Hyder plc...................... 337,508
26,385 Thames Water plc............... 397,490
57,782 United Utilities plc........... 742,645
------------
2,454,898
------------
TOTAL COMMON STOCKS
(Cost $128,533,062)............ 150,834,218
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 41
================================================================================
INTERNATIONAL EQUITIES FUND - STATEMENT OF NET ASSETS CONTINUED 39
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- -----------------------------------------------------------
<S> <C> <C>
UNITED STATES GOVERNMENT -
SHORT TERM - 0.16%
U.S. TREASURY BILLS - 0.16%
$ 250,000 United States Treasury Bills,
4.67% due 12/11/97............ $ 249,676
------------
TOTAL UNITED STATES GOVERNMENT -
SHORT TERM (Cost $249,676).... 249,676
------------
TOTAL INVESTMENTS
(Cost $128,782,738) - 98.48%... 151,083,894
Other assets and liabilities,
net - 1.52% .................. 2,333,958
------------
NET ASSETS (equivalent
to $10.83 per share on
14,169,142 shares
outstanding) - 100% .......... $153,417,852
============
</TABLE>
* Non-income producing
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS DEPRECIATION
- ------------------------------------------------------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/97)
30(2) Nikkei 225 Futures
(December/$130.62)............ $ (220,372)
============
(1)U.S.Treasury Bills with a market value of apimately $500,000
were maintained in a segregated account with a portion placed as
collateral for futures contracts.
(2)Per 500
- ----------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
14,169,142 shares outstanding........... $ 141,691
Additional paid in capital................ 120,399,210
Undistributed net realized gain on
securities.............................. 10,724,419
Undistributed net investment income....... 96,174
Unrealized appreciation (depreciation) of:
Investments........... $22,301,156
Futures .............. (220,372)
Foreign currency
translation.......... (24,426) 22,056,358
----------- ------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................. $153,417,852
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 42
===============================================================================
40 INTERNATIONAL EQUITIES FUND - FINANCIAL STATEMENTS (Unaudited)
===============================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $204,157) ... $ 1,510,796
Interest ................................................... 444,587
------------
Total investment income .................................. 1,955,383
------------
EXPENSES:
Advisory fees .............................................. 308,691
Custodian and accounting services .......................... 23,799
Reports to shareholders .................................... 11,500
Audit fees and tax services ................................ 1,564
Directors' fees and expenses ............................... 2,284
Miscellaneous .............................................. 10,263
------------
Total expenses ........................................... 358,101
------------
NET INVESTMENT INCOME ...................................... 1,597,282
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments .................................. $ 6,154,413
Foreign currency transactions ................ (25,550)
Futures ...................................... 105,997 6,234,860
-----------
Net unrealized depreciation during the period:
Investments .................................. (13,414,919)
Foreign currency translation ................. (48,512)
Futures ...................................... (522,390) (13,985,821)
----------- ------------
Net realized and unrealized loss on securities and
foreign currencies during the period .................. (7,750,961)
------------
DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ........... $ (6,153,679)
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income .................................................. $ 1,597,282 $ 3,339,991
Net realized gain on securities and foreign currency transactions ...... 6,234,860 6,077,411
Net unrealized appreciation (depreciation) of securities and
translation of foreign currencies during the period................... (13,985,821) 3,956,886
------------- -------------
Increase (decrease) in net assets resulting from operations ......... (6,153,679) 13,374,288
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .................................................. (1,949,995) (3,206,176)
Net realized gain on securities ........................................ -- (6,030,686)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders ..................................................... (1,949,995) (9,236,862)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ....................................... 37,727,989 74,488,255
Proceeds from capital stock issued for distributions reinvested ........ 1,949,995 9,236,862
------------- -------------
39,677,984 83,725,117
Cost of capital stock repurchased ...................................... (59,593,441) (112,684,896)
------------- -------------
Decrease in net assets resulting from capital stock transactions ..... (19,915,457) (28,959,779)
------------- -------------
TOTAL DECREASE IN NET ASSETS ........................................... (28,019,131) (24,822,353)
NET ASSETS:
Beginning of period .................................................... 181,436,983 206,259,336
------------- -------------
End of period (including undistributed net investment income
of $96,174 and $448,887) ............................................. $ 153,417,852 $ 181,436,983
------------- -------------
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ........................................... 3,257,666 6,846,567
Shares issued for distributions reinvested ............................. 169,076 848,956
Shares of capital stock repurchased .................................... (5,115,042) (10,334,613)
------------- -------------
Decrease in shares outstanding ....................................... (1,688,300) (2,639,090)
Shares outstanding:
Beginning of period .................................................. 15,857,442 18,496,532
------------- -------------
End of period ........................................................ 14,169,142 15,857,442
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
<PAGE> 43
================================================================================
GROWTH FUND - STATEMENT OF NET ASSETS 41
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
-------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 94.26%
ADVERTISING - 3.77%
415,000* ADVO, Inc...................... $ 9,026,250
300,000* Catalina Marketing Corp........ 13,875,000
370,000* Outdoor Systems Inc............ 11,423,750
-------------
34,325,000
-------------
APPAREL & PRODUCTS - 0.36%
84,500* Tommy Hilfiger Corp............ 3,316,625
-------------
AUTO - REPLACEMENT PARTS - 1.57%
475,000* AutoZone, Inc.................. 14,250,000
-------------
BANKS - REGIONAL - 1.85%
450,000 Norwest Corp................... 16,846,875
-------------
BROADCASTING - 4.07%
775,000 Comcast Corp. Class A Special.. 21,700,000
176,500 Liberty Media Group Series A... 5,956,875
250,000* Sinclair Broadcast Group, Inc.. 9,343,750
-------------
37,000,625
-------------
CONGLOMERATES - 0.74%
172,186 Tyco International Ltd......... 6,758,301
-------------
ELECTRICAL EQUIPMENT - 0.22%
67,300 Westinghouse Electric Corp..... 2,019,000
-------------
ENTERTAINMENT - 3.32%
303,600 Carnival Corp. Class A......... 16,413,377
145,000 Walt Disney Co................. 13,765,941
-------------
30,179,318
-------------
FINANCE COMPANIES - 3.39%
211,500 Green Tree Financial Corp...... 6,477,188
105,000 Household International, Inc... 13,230,000
234,100 Money Store, Inc............... 5,867,131
168,000* Newcourt Credit Group, Inc. ... 5,252,083
-------------
30,826,402
-------------
FUNERAL SERVICES - 2.69%
668,600 Service Corp. International.... 24,445,697
-------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
---------------------------------------------------------------
<S> <C> <C>
GOVERNMENT SPONSORED - 3.21%
440,000 Federal Home Loan Mortgage
Corp.......................... $18,150,000
210,000 Federal National Mortgage
Association .................. 11,090,625
-----------
29,240,625
-----------
HEALTHCARE - 5.27%
275,000 Cardinal Health, Inc........... 20,831,250
38,900* Patterson Dental Co............ 1,597,331
380,000* PhyCor, Inc.................... 9,357,500
675,000* Quorum Health Group Inc........ 16,200,000
-----------
47,986,081
-----------
HOSPITAL MANAGEMENT - 1.11%
415,000* Vencor, Inc.................... 10,063,750
-----------
HUMAN RESOURCES - 4.95%
475,000* Accustaff, Inc................. 14,042,188
460,000* COREStaff, Inc................. 12,362,500
198,400* Employee Solutions, Inc........ 1,091,200
620,000* Interim Services Inc........... 17,553,750
-----------
45,049,638
-----------
INFORMATION PROCESSING - 8.57%
525,000* Acxiom Corp.................... 9,023,437
400,000* Affiliated Computer Services
Inc., Class A................. 9,350,000
375,000* BISYS Group, Inc............... 12,000,000
550,000 First Data Corp................ 15,571,887
400,000 Galileo International Inc...... 10,725,000
228,600 Paychex, Inc................... 9,372,600
460,000* SunGard Data Systems, Inc...... 11,902,500
-----------
77,945,424
-----------
INSURANCE - LIFE - 1.06%
270,000* UICI........................... 9,686,250
-----------
INSURANCE - MISCELLANEOUS - 6.10%
250,000 Ace Limited.................... 24,812,500
200,000 MGIC Investment Corp........... 11,687,500
400,000 UNUM Corp...................... 18,975,000
-----------
55,475,000
-----------
INSURANCE - MULTILINE - 0.87%
36,300* Fairfax Financial Holdings
Ltd........................... 7,900,450
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
------------------------------------------------------------
<S> <C> <C>
LEISURE TIME - 0.16%
54,600* Vail Resorts Inc............... $ 1,443,488
------------
LODGING - 4.61%
700,000* Extended Stay America, Inc..... 8,050,000
275,000* HFS, Inc....................... 18,871,875
790,000 La Quinta Inns, Inc............ 15,010,000
------------
41,931,875
------------
MERCHANDISE - SPECIALTY - 13.35%
395,400 Circuit City Stores, Inc....... 12,974,063
425,000* Cole National Corp. Class A.... 14,662,500
1,050,000* Corporate Express, Inc......... 16,406,250
370,000* CostCo Companies, Inc.......... 16,395,625
547,400* General Nutrition Cos., Inc.... 18,680,025
225,000 Home Depot, Inc................ 12,585,950
254,700 Ikon Office Solutions Inc...... 7,752,431
134,400* Kohl's Corp.................... 9,727,200
530,000* Viking Office Products, Inc.... 12,289,377
------------
121,473,421
------------
MERCHANDISING - FOOD - 1.44%
215,000* Safeway, Inc................... 13,061,250
------------
MERCHANDISING - MASS - 2.88%
875,000 CUC International Inc.......... 25,156,250
63,000* Global Directmail Corp......... 1,134,000
------------
26,290,250
------------
OIL - SERVICE - PRODUCTS - 1.62%
90,000* BJ Services Co................. 6,463,125
100,000 Schlumberger Ltd............... 8,231,250
------------
14,694,375
------------
OIL - SERVICES - 3.56%
155,000 Camco International, Inc....... 9,726,250
185,000* Smith International, Inc....... 11,840,000
155,000* Western Atlas Inc.............. 10,782,187
------------
32,348,437
------------
POLLUTION CONTROL - 3.08%
395,000* Republic Industries, Inc....... 10,294,700
535,000* USA Waste Services, Inc........ 17,688,442
------------
27,983,142
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 44
================================================================================
42 GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------------
<S> <C> <C>
PUBLISHING - NEWS - 1.12%
180,000 Tribune Co..................... $ 10,147,500
------------
RESTAURANTS - 1.69%
515,000* Outback Steakhouse Inc......... 15,417,813
------------
SECURITIES RELATED - 3.37%
341,300 Franklin Resources, Inc........ 30,674,337
------------
TELECOMMUNICATIONS - 3.55%
450,000* Airtouch Communications, Inc... 17,662,500
553,200* Paging Network, Inc............ 6,672,977
250,000* WorldCom, Inc.................. 8,000,000
------------
32,335,477
------------
UTILITIES - COMMUNICATION - 0.71%
147,100 MCI Communications Corp........ 6,463,206
------------
TOTAL COMMON STOCKS
(Cost $637,445,632)............ 857,579,632
------------
PAR
VALUE
- ----------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 7.47%
CONSUMER FINANCE - 1.00%
$9,088,000 Commercial Credit Co.,
5.62 % due 12/8/97............ 9,078,069
------------
FINANCE COMPANIES - 3.13%
4,917,000 Ford Motor Credit Europe.,
5.58% due 12/4/97............. 4,914,714
General Motors Acceptance
Corp.:
6,087,000 5.58 % due 12/5/97............ 6,083,226
8,440,000 5.57 % due 12/2/97............ 8,438,694
9,000,000 5.56 % due 12/3/97............ 8,997,220
------------
28,433,854
------------
SECURITIES RELATED - 3.34%
Merrill Lynch & Co., Inc.:
10,259,000 5.65 % due 12/4/97............ 10,254,170
20,168,000 5.57 % due 12/1/97............ 20,168,000
------------
30,422,170
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
- ----------------------------------------------------------------------
<S> <C>
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $67,934,093)............. $ 67,934,093
-------------
TOTAL INVESTMENTS
(Cost $705,379,725) - 101.73%.. 925,513,725
Other assets less liabilities,
net - (1.73%)................. (15,709,190)
-------------
NET ASSETS (equivalent
to $20.01 per share on
45,467,727 shares
outstanding ) - 100%.......... $ 909,804,535
=============
*Non-income producing
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
- -----------------------------------------------------------------------
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
45,467,727 shares outstanding........... $ 454,677
Additional paid in capital................ 677,462,077
Undistributed net realized gain on securities 11,324,434
Undistributed net investment income....... 429,347
Unrealized appreciation of securities..... 220,134,000
------------
Net Assets Applicable to Shares
Outstanding............................. $909,804,535
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 45
================================================================================
GROWTH FUND - FINANCIAL STATEMENTS (Unaudited) 43
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................ $ 1,290,921
Interest............................................................. 2,459,231
------------
Total investment income............................................ 3,750,152
------------
EXPENSES:
Advisory fees........................................................ 3,426,811
Custodian and accounting services.................................... 106,349
Reports to shareholders.............................................. 52,567
Audit fees and tax services.......................................... 11,932
Directors' fees and expenses.......................................... 9,771
Miscellaneous........................................................ 16,590
------------
Total expenses..................................................... 3,624,020
------------
NET INVESTMENT INCOME................................................ 126,132
------------
REALIZED AND UNREALIZED GAIN(LOSS) ON SECURITIES:
Net realized loss on securities...................................... (3,215,021)
Net unrealized appreciation of securities during the period.......... 105,923,955
------------
Net realized and unrealized gain on securities during the period... 102,708,934
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $102,835,066
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income.................................. $ 126,132 $ 552,393
Net realized gain (loss) on securities................. (3,215,021) 16,994,556
Net unrealized appreciation of securities during the
period............................................... 105,923,955 39,599,901
----------------- -----------------
Increase in net assets resulting from operations..... 102,835,066 57,146,850
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................. -- (503,196)
Net realized gain on securities........................ -- (11,891,551)
----------------- -----------------
Decrease in net assets resulting from distributions
to shareholders..................................... -- (12,394,747)
----------------- -----------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold....................... 66,612,589 268,628,198
Proceeds from capital stock issued for distributions
reinvested............................................ -- 12,394,747
----------------- -----------------
66,612,589 281,022,945
Cost of capital stock repurchased...................... (7,297,133) (3,908,102)
----------------- -----------------
Increase in net assets resulting from capital
stock transactions.................................. 59,315,456 277,114,843
----------------- -----------------
TOTAL INCREASE IN NET ASSETS........................... 162,150,522 321,866,946
NET ASSETS:
Beginning of period.................................... 747,654,013 425,787,067
----------------- -----------------
End of period (including undistributed net investment
income of $429,347 and $303,215)...................... $ 909,804,535 $ 747,654,013
================= =================
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold........................... 3,420,059 16,096,764
Shares issued for distributions reinvested............. -- 733,851
Shares of capital stock repurchased ................... (374,206) (234,388)
----------------- -----------------
Increase in shares outstanding....................... 3,045,853 16,596,227
Shares outstanding:
Beginning of period.................................. 42,421,874 25,825,647
----------------- -----------------
End of period........................................ 45,467,727 42,421,874
================= =================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 46
================================================================================
44 GROWTH & INCOME FUND - STATEMENT OF NET ASSETS
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C>
COMMON STOCKS - 80.60%
ADVERTISING - 1.11%
38,000 Omnicom Group, Inc............. $ 2,816,750
------------
AEROSPACE/DEFENSE - 2.26%
60,000* SCI Systems, Inc............... 2,748,750
40,000 United Technologies Corp....... 2,997,500
------------
5,746,250
------------
BANKS - NEW YORK CITY - 1.09%
23,000 CitiCorp....................... 2,758,563
------------
BANKS - OTHER - 2.92%
55,000 BankAmerica Corp............... 4,015,000
60,000 Mellon Bank Corp............... 3,401,250
------------
7,416,250
------------
BANKS - REGIONAL - 2.48%
90,000 Norwest Corp................... 3,369,375
54,000 Star Banc Corp................. 2,916,000
------------
6,285,375
------------
BROADCASTING - 0.80%
30,000* Clear Channel Communications,
Inc........................... 2,032,500
------------
BUILDING MATERIALS - 0.58%
27,400 HON INDUSTRIES Inc............. 1,476,175
------------
CHEMICAL - MAJOR - 0.01%
600 Hercules, Inc.................. 29,137
------------
CONTAINERS - PAPER - 0.36%
16,000* Sealed Air Corp................ 910,000
------------
DRUGS - 6.77%
40,000* Centocor, Inc,................. 1,740,000
363* Crescendo Phamarceuticals
Corp.......................... 4,152
50,000* Dura Pharmaceuticals, Inc...... 2,193,750
60,000 Eli Lilly and Co............... 3,783,750
45,214 ICN Pharmaceuticals, Inc....... 2,235,267
61,000 Pfizer, Inc.................... 4,437,750
20,000 Warner-Lambert Co.............. 2,797,500
------------
17,192,169
------------
ELECTRICAL EQUIPMENT - 1.16%
40,000 General Electric Co............ 2,950,000
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C>
FINANCE COMPANIES - 1.12%
70,000 SunAmerica, Inc................ $ 2,835,000
------------
FOODS - 2.44%
56,000 Campbell Soup Co............... 3,136,000
50,000 Hershey Foods Corp............. 3,068,750
------------
6,204,750
------------
FREIGHT - 2.23%
64,200 Air Express International
Corp.......................... 1,841,737
60,000 Airborne Freight Corp.......... 3,821,250
------------
5,662,987
------------
HEALTHCARE - 2.70%
45,000 Cardinal Health, Inc........... 3,408,750
131,480* HealthSouth Corp............... 3,451,350
------------
6,860,100
------------
INFORMATION PROCESSING - 9.92%
55,000* Adaptec, Inc................... 2,722,500
65,000* BMC Software, Inc.............. 4,216,875
35,000* Cisco Systems, Inc............. 3,018,750
75,000 Computer Associates
International, Inc............ 3,904,688
120,000* Compuware Corp................. 4,192,500
52,083* Data General Corp.............. 934,239
90,000* EMC Corp....................... 2,728,125
5,000 Microsoft Corp................. 442,812
50,000* Newbridge Networks Corp........ 2,106,250
14,183* Storage Technology Corp........ 915,690
------------
25,182,429
------------
INSURANCE - LIFE - 1.49%
40,000 Conseco Inc.................... 1,862,500
40,404 Equitable Cos., Inc............ 1,926,766
------------
3,789,266
------------
INSURANCE - MISCELLANEOUS - 1.41%
55,000 Executive Risk, Inc............ 3,575,000
------------
INSURANCE - MULTILINE - 3.93%
45,000 Allstate Corp.................. 3,864,375
70,000 Reliastar Financial Corp....... 2,590,000
69,999 Travelers Group, Inc........... 3,534,950
------------
9,989,325
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C>
MACHINERY - INDUSTRIAL/SPECIALTY - 2.32%
36,000 Illinois Tool Works Inc........ $ 1,973,250
70,000 Tidewater, Inc................. 3,924,375
------------
5,897,625
------------
MEDICAL TECHNOLOGY - 1.01%
40,000 Guidant Corp................... 2,570,000
------------
MERCHANDISE - SPECIALTY - 4.30%
50,000* CompUSA, Inc................... 1,828,125
55,312* Consolidated Stores Corp....... 2,689,546
75,375* Staples, Inc................... 2,124,633
84,000 TJX Companies, Inc............. 2,898,000
70,000* US Office Products, Co......... 1,391,250
------------
10,931,554
------------
MERCHANDISING - DEPARTMENT - 1.49%
57,000 Dayton Hudson Corp............. 3,786,937
------------
MERCHANDISING - FOOD - 1.32%
55,000* Safeway, Inc................... 3,341,250
------------
MERCHANDISING - MASS - 0.20%
23,900 ShopKo Stores, Inc............. 501,900
------------
METALS - MISCELLANEOUS - 1.07%
45,900 Precision Castparts Corp....... 2,725,312
------------
MISCELLANEOUS - 1.22%
193,400* Brightpoint, Inc............... 3,106,488
------------
OIL - INTEGRATED DOMESTIC - 1.41%
40,000 Occidental Petroleum Corp...... 1,187,500
70,000 USX-Marathon Group............. 2,397,500
------------
3,585,000
OIL - INTEGRATED INTERNATIONAL - 0.99%
30,180 British Petroleum Co. plc
- ADR......................... 2,504,940
------------
OIL - SERVICE - PRODUCTS - 2.09%
60,000* BJ Services Co................. 4,308,750
75,000* Parker Drilling Co............. 989,063
------------
5,297,813
------------
OIL - SERVICES - 7.35%
60,000 Baker Hughes Inc............... 2,512,500
90,000 ENSCO International, Inc....... 3,217,500
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 47
================================================================================
GROWTH & INCOME FUND - STATEMENT OF NET ASSETS CONTINUED 45
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C>
OIL - SERVICES - Continued
50,000* Global Marine Inc.............. $ 1,315,625
80,000* Rowan Companies, Inc........... 2,720,000
50,000* Smith International, Inc....... 3,200,000
120,000 Transocean Offshore, Inc....... 5,692,500
------------
18,658,125
------------
OIL/GAS PRODUCERS - 3.34%
90,000* Falcon Drilling Co., Inc....... 2,902,500
60,000 Helmerich & Payne, Inc......... 4,563,750
27,285 Noble Affiliates, Inc.......... 1,012,956
------------
8,479,206
------------
SEMICONDUCTORS - 0.95%
35,000* Maxim Integrated Products,
Inc........................... 2,419,375
------------
TELECOMMUNICATIONS - 3.95%
40,000* ADC Communications, Inc........ 1,487,500
150,000* Pairgain Technologies Inc...... 3,543,750
50,000* Tellabs, Inc................... 2,600,000
75,000* WorldCom, Inc.................. 2,400,000
------------
10,031,250
------------
TOBACCO - 1.37%
80,000 Philip Morris Cos Inc.......... 3,480,000
------------
UTILITIES - ELECTRIC - 1.44%
100,000* AES Corp....................... 3,662,500
------------
TOTAL COMMON STOCKS
(Cost $144,408,688)............ 204,691,301
------------
PAR
VALUE
- -----
CONVERTIBLE BONDS - 6.96%
AEROSPACE/DEFENSE - 0.82%
$ 500,000 Rohr, Inc.,
7.75% due 5/15/04............. 1,085,040
500,000 SCI Systems, Inc.,
5.00% due 5/1/06.............. 991,250
------------
2,076,290
------------
AIRLINES - 0.34%
500,000 Alaska Air Group, Inc.,
6.50% due 6/15/05............. 862,500
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
BANKS - REGIONAL - 0.79%
$2,000,000 Bank Atlantic Bancorp,
5.63% due 12/1/07............. $ 2,000,000
------------
DRUGS - 0.19%
500,000 ALZA Corp.,
5.00% due 5/1/06.............. 493,750
------------
ELECTRONIC INSTRUMENTS - 0.12%
300,000 C-Cube Microsystems, Inc.,
5.88% due 11/1/05............. 303,000
------------
HEALTHCARE - 0.37%
1,000,000 PhyCor, Inc.,
4.50% due 2/15/03............. 942,500
------------
INFORMATION PROCESSING - 0.93%
500,000 Adaptec, Inc.,
4.75% due 2/1/04.............. 588,750
300,000 Data General Corp.,
6.00% due 5/15/04............. 298,500
1,500,000 National Data Corp.,
5.00% due 11/1/03............. 1,483,125
------------
2,370,375
------------
LODGING - 0.46%
500,000 HFS, Inc.,
4.75% due 3/1/03.............. 606,875
500,000 Hilton Hotels Corp.,
5.00% due 5/15/06............. 560,000
------------
1,166,875
------------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.22%
500,000 Halter Marine Group, Inc.,
4.50% due 9/15/04............. 560,625
------------
MERCHANDISE - SPECIALTY - 0.36%
500,000 Home Depot, Inc.,
3.25% due 10/1/01............. 655,625
250,000 Inacom Corp.,
4.50% due 11/1/04............. 255,000
------------
910,625
------------
OIL - INTEGRATED DOMESTIC - 0.54%
1,000,000 Pennzoil Co.,
4.75% due 10/1/03............. 1,377,500
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
OIL - SERVICES - 1.17%
$2,000,000 Key Energy Group, Inc.,
5.00% due 9/15/04............. $ 1,795,000
500,000 Nabors Industries, Inc.,
5.00% due 5/15/06............. 1,175,000
------------
2,970,000
------------
OIL/GAS PRODUCERS - 0.27%
500,000 Diamond Offshore Drilling,
Inc., 3.75% due 2/15/07....... 685,000
------------
PUBLISHING/PRINTING - 0.38%
1,000,000 World Color Press, Inc.,
6.00% due 10/1/07............. 955,000
------------
TOTAL CONVERTIBLE BONDS
(Cost $15,905,213)............. 17,674,040
------------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 11.83%
CONSUMER FINANCE - 1.57%
4,000,000 Commercial Credit Co.,
5.62% due 12/8/97............. 3,995,627
------------
FINANCE COMPANIES - 6.01%
5,450,000 Ford Motor Credit Co.,
5.54% due 12/2/97............. 5,449,161
2,402,000 General Electric Capital Corp.,
5.40% due 12/1/97............. 2,402,000
General Motors Acceptance Corp.,
1,402,000 5.59% due 12/10/97............ 1,400,040
6,000,000 5.58% due 12/3/97............. 5,998,138
------------
15,249,339
------------
SECURITIES RELATED - 4.25%
Merrill Lynch & Co., Inc.,
4,517,000 5.65% due 12/5/97............. 4,514,162
6,284,000 5.58% due 12/4/97............. 6,281,075
------------
10,795,237
------------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $30,040,203)............. 30,040,203
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 48
================================================================================
46 GROWTH & INCOME FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
MARKET
VALUE
- -----------------------------------------------------------
<S> <C>
TOTAL INVESTMENTS
(Cost $190,354,104)
- 99.39%...................... $252,405,544
Other assets less liabilities,
net - 0.61%................... 1,541,666
------------
NET ASSETS (equivalent
to $19.20 per share on
13,224,672 shares
outstanding) - 100%............ $253,947,210
============
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
- -----------------------------------------------------------
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
13,224,672 shares outstanding........... $ 132,247
Additional paid in capital................ 176,430,081
Accumulated net realized gain on
securities.............................. 15,137,812
Undistributed net investment income....... 195,630
Unrealized appreciation of securities..... 62,051,440
------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................. $253,947,210
============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 49
================================================================================
GROWTH & INCOME FUND - FINANCIAL STATEMENTS (Unaudited) 47
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends ................................................................ $ 809,484
Interest ................................................................. 646,270
-----------
Total investment income ................................................ 1,455,754
-----------
EXPENSES:
Advisory fees ............................................................ 911,764
Custodian and accounting fees ............................................ 29,823
Reports to shareholders .................................................. 15,026
Audit fees and tax services .............................................. 3,504
Directors' fees and expenses ............................................. 2,778
Miscellaneous ............................................................ 4,079
-----------
Total expenses ......................................................... 966,974
-----------
NET INVESTMENT INCOME .................................................... 488,780
-----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities .......................................... 12,425,495
Net unrealized appreciation on securities during the period .............. 16,606,019
-----------
Net realized and unrealized gain on securities during the period ...... 29,031,514
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......................... $29,520,294
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- ------------------
<S> <C> <C>
OPERATIONS:
Net investment income .................................... $ 488,780 $ 1,134,645
Net realized gain on securities .......................... 12,425,495 2,722,032
Net unrealized appreciation of securities during
the period ............................................ 16,606,019 24,022,009
------------- -------------
Increase in net assets resulting from operations ....... 29,520,294 27,878,686
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .................................... (454,422) (1,058,649)
Net realized gain on securities .......................... -- (3,131,642
------------- -------------
Decrease in net assets resulting from distributions
to shareholders ....................................... (454,422) (4,190,291)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ......................... 19,629,282 70,892,821
Proceeds from capital stock issued for distributions
reinvested ............................................ 454,422 4,190,291
------------- -------------
20,083,704 75,083,112
Cost of capital stock repurchased ........................ (4,747,490) (2,772,662)
------------- -------------
Increase in net assets resulting from capital
stock transactions .................................... 15,336,214 72,310,450
------------- -------------
TOTAL INCREASE IN NET ASSETS ............................. 44,402,086 95,998,845
NET ASSETS:
Beginning of period ...................................... 209,545,124 113,546,279
------------- -------------
End of period (including undistributed net investment
income of $195,630 and $161,272) ...................... $ 253,947,210 $ 209,545,124
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ............................. 1,030,416 4,647,143
Shares issued for distributions reinvested ............... 24,203 268,315
Shares of capital stock repurchased ...................... (252,109) (177,920)
------------- -------------
Increase in shares outstanding ......................... 802,510 4,737,538
Shares outstanding:
Beginning of period .................................... 12,422,162 7,684,624
------------- -------------
End of period .......................................... 13,224,672 12,422,162
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 50
================================================================================
48 SCIENCE & TECHNOLOGY FUND - STATEMENT OF NET ASSETS
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ------
<S> <C> <C>
COMMON STOCKS - 95.31%
DRUGS - 0.93%
325,000* ALZA Corp...................... $ 8,673,438
------------
HOSPITAL SUPPLIES - 1.96%
200,000* Boston Scientific Corp......... 9,037,500
350,000 United States Surgical Corp.... 9,231,250
------------
18,268,750
------------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 10.63%
300,000* BMC Software, Inc.............. 19,462,500
350,000 McAfee Associates, Inc......... 16,012,500
200,000* Microsoft Corp................. 28,300,000
400,000* Oracle Corp.................... 13,325,000
700,000* PLATINUM technology, inc....... 18,200,000
60,000* Veritas Software Corp.......... 2,623,128
35,000* Visio Corp..................... 1,316,875
------------
99,240,003
------------
INFORMATION PROCESSING-
COMPUTER HARDWARE SYSTEMS - 8.30%
375,000* Adaptec, Inc................... 18,562,500
180,000 Compaq Computer Corp........... 11,238,750
125,000* Dell Computer Corp............. 10,523,438
471,900* Electronics for Imaging, Inc... 22,769,175
250,000 OEA, Inc....................... 7,781,250
250,000* Quantum Corp................... 6,656,250
------------
77,531,363
------------
INFORMATION PROCESSING -
COMPUTER SERVICES - 12.24%
250,000* America Online, Inc............ 18,875,000
60,000 Cambridge Technology
Partners, Inc. .............. 2,332,500
1,000,000 First Data Corp................ 28,312,500
500,000* Gartner Group, Inc............. 14,562,500
250,000 National Data Corp............. 8,843,750
250,000* Security Dynamics Technology... 8,500,000
500,000* Sterling Commerce Inc.......... 17,375,000
600,000* SunGard Data Systems, Inc...... 15,525,000
------------
114,326,250
------------
INFORMATION PROCESSING -
DATA SERVICES - 6.65%
360,000* Affiliated Computer Services
Inc. Class A.................. 8,415,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ------
<S> <C> <C>
INFORMATION PROCESSING - DATA
SERVICES - Continued
500,000* Anixter International, Inc..... $ 8,968,750
115,000* CBT Group PLC.................. 8,121,875
400,000* E M C Corp..................... 12,125,000
150,000 Hewlett Packard Co............. 9,159,375
500,000* Sequent Computer Systems, Inc.. 11,625,000
100,000* Viasoft, Inc................... 3,675,000
------------
62,090,000
------------
INFORMATION PROCESSING -
NETWORKING - 3.79%
225,000* Cisco Systems, Inc............. 19,406,250
400,000* Network General Corp........... 7,550,000
200,000* Newbridge Networks Corp........ 8,425,000
------------
35,381,250
------------
MERCHANDISE - SPECIALTY - 0.17%
31,300* Amazon.com, Inc................ 1,549,350
------------
MERCHANDISING - MASS - 3.08%
1,000,000 CUC International, Inc......... 28,750,000
------------
MULTIMEDIA - 6.87%
700,000* Parametric Technology Corp..... 35,393,750
700,000* Synopsys Inc................... 28,787,500
------------
64,181,250
------------
SECURITIES RELATED - 0.81%
300,000* E*Trade Group, Inc............. 7,518,750
------------
SEMICONDUCTOR EQUIPMENT - 9.34%
500,000* Applied Materials, Inc......... 16,500,000
367,300* ASM Lithography Holding NV..... 22,956,250
350,000* KLA-Tencor Corp................ 13,562,500
300,000* LAM Research Corp.............. 9,187,500
500,000* Microchip Technology, Inc...... 17,500,000
200,000 Novellus Systems, Inc. 7,525,000
------------
87,231,250
------------
SEMICONDUCTORS - 17.75%
350,000* Altera Corp.................... 16,384,374
1,200,000* Analog Devices, Inc............ 37,650,000
125,000 Intel Corp..................... 9,703,125
250,000 Linear Technology Corp......... 16,093,750
400,000* Maxim Integrated Products, Inc. 27,650,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ------
<S> <C> <C>
SEMICONDUCTORS - Continued
150,000 Motorola, Inc.................. $ 9,431,250
500,000 Texas Instruments Inc.......... 24,625,000
700,000* Xilinx, Inc.................... 24,193,750
------------
165,731,249
------------
TELECOMMUNICATIONS - 11.85%
125,000* ADC Communications, Inc........ 4,648,437
150,000* Advanced Fibre Communications.. 3,881,250
250,000* Airtouch Communications, Inc... 9,812,500
200,000* CIENA Corp..................... 10,800,000
200,000* DSC Communications Corp........ 4,512,500
175,000 Ericsson (LM) Tel Co. -
ADR Series B 7,076,563
100,000 Nokia Corp. ADR Class A........ 8,312,500
361,600* Pairgain Technologies Inc...... 8,542,800
500,000* QUALCOMM, Inc.................. 33,875,000
600,000* WorldCom, Inc.................. 19,200,000
------------
110,661,550
------------
UTILITIES - COMMUNICATION - 0.94%
200,000 MCI Communications Corp........ 8,787,500
------------
TOTAL COMMON STOCKS
(Cost $804,299,230)............ 889,921,953
------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
- -----
<S> <C> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 4.31%
FINANCE COMPANIES - 1.53%
$12,000,000 Ford Motor Credit Europe.,
5.63% due 12/4/97............. 11,994,370
2,308,000 General Motors Acceptance Corp.,
5.70% due 12/5/97............ 2,306,538
------------
14,300,908
------------
PUBLISHING/PRINTING - 0.70%
6,537,000 RR Donnelley & Sons Co.,
5.52% due 12/1/97............ 6,537,000
------------
SECURITIES RELATED - 2.08%
Merrill Lynch & Co., Inc.:
12,956,000 5.65% due 12/3/97............. 12,951,933
6,492,000 5.58% due 12/2/97............. 6,490,994
------------
19,442,927
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 51
================================================================================
SCIENCE & TECHNOLOGY FUND - STATEMENT OF NET ASSETS CONTINUED 49
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
MARKET
VALUE
------
<S> <C>
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $40,280,835)............ $ 40,280,835
------------
TOTAL INVESTMENT
(Cost $844,580,065) - 99.62%... 930,202,788
Other assets and liabilities,
net - 0.38%................... 3,501,819
------------
NET ASSETS (equivalent
to $20.98 per share on
44,500,172 shares
outstanding) - 100%........... $933,704,607
============
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
------
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
44,500,172 shares outstanding........... $ 445,002
Additional paid in capital................ 778,500,554
Accumulated net realized gain on securities 70,813,963
Accumulated net investment loss........... (1,677,635)
Unrealized appreciation of securities..... 85,622,723
------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................. $933,704,607
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 52
================================================================================
50 SCIENCE & TECHNOLOGY FUND - FINANCIAL STATEMENTS (Unaudited)
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends ............................................................. $ 365,885
Interest .............................................................. 2,317,575
------------
Total investment income ............................................. 2,683,460
------------
EXPENSES:
Advisory fees ......................................................... 4,157,675
Custodian and accounting services ..................................... 114,629
Reports to shareholders ............................................... 52,776
Audit fees and tax services ........................................... 10,475
Directors' fees and expenses .......................................... 10,107
Miscellaneous ......................................................... 15,433
------------
Total expenses ...................................................... 4,361,095
------------
NET INVESTMENT LOSS ................................................... (1,677,635)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
AND FOREIGN CURRENCIES:
Net realized gain on securities ....................................... 83,072,046
Net unrealized depreciation of securities during the period ........... (41,673,503)
------------
Net realized and unrealized gain on securities during the period .... 41,398,543
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................... $ 39,720,908
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss ................................................... $ (1,677,635) $ (1,919,791)
Net realized gain (loss) on securities ................................ 83,072,046 (8,889,903)
Net unrealized appreciation (depreciation) of securities
during the period ................................................... (41,673,503) 33,692,829
------------- -------------
Increase in net assets resulting from operations ................... 39,720,908 22,883,135
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................................. -- --
Net realized gain on securities ....................................... -- (32,117,202)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders .................................................... -- (32,117,202)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ...................................... 120,365,901 286,682,331
Proceeds from capital stock issued for distributions reinvested ....... -- 32,117,202
------------- -------------
120,365,901 318,799,533
Cost of capital stock repurchased ..................................... (31,364,149) (71,770,130)
------------- -------------
Increase in net assets resulting from capital stock transactions .... 89,001,752 247,029,403
------------- -------------
TOTAL INCREASE IN NET ASSETS .......................................... 128,722,660 237,795,336
NET ASSETS:
Beginning of period ................................................... 804,981,947 567,186,611
------------- -------------
End of period [including undistributed net investment income
of $(1,677,635) and $0] ............................................. $ 933,704,607 $ 804,981,947
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold .......................................... 5,443,930 14,868,580
Shares issued for distributions reinvested ............................ -- 1,636,128
Shares of capital stock repurchased ................................... (1,427,887) (3,716,452
------------- -------------
Increase in shares outstanding ...................................... 4,016,043 12,788,256
Shares outstanding:
Beginning of period ................................................. 40,484,129 27,695,873
------------- -------------
End of period ....................................................... 44,500,172 40,484,129
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 53
================================================================================
SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS 51
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 96.47%
ADVERTISING - 0.14%
6,720 Interpublic Group Cos., Inc.... $ 322,140
------------
AEROSPACE/DEFENSE - 0.15%
7,581 Goodrich (B.F.) Co............. 337,355
------------
AIRLINES - 0.19%
1,733* AMR Corp....................... 210,018
1,050 Delta Air Lines, Inc........... 117,009
5,000 Southwest Airlines Co.......... 122,175
------------
449,202
------------
APPAREL & PRODUCTS - 0.03%
1,254 Liz Claiborne, Inc............. 63,014
------------
APPLIANCES/FURNISHINGS - 0.03%
1,460 Whirlpool Corp................. 80,026
------------
AUTO - CARS - 0.70%
46,907 Chrysler Corp.................. 1,609,496
------------
AUTO - REPLACEMENT PARTS - 0.56%
5,782 Cooper Tire & Rubber Co........ 129,372
4,836 Echlin Inc..................... 153,241
11,929 Genuine Parts Co............... 381,728
10,371 Goodyear Tire & Rubber Co...... 629,390
------------
1,293,731
------------
BANKS - NEW YORK CITY - 2.62%
15,831 Bank of New York Co., Inc...... 850,915
16,742 Chase Manhattan Corp........... 1,818,600
19,433 CitiCorp....................... 2,330,744
8,941 J. P. Morgan & Co. Inc......... 1,020,950
------------
6,021,209
------------
BANKS - OTHER - 3.21%
30,630 BankAmerica Corp............... 2,235,990
4,410 BankBoston Corp................ 393,041
11,835 First Chicago Corp............. 926,089
24,621 First Union Corp............... 1,200,274
10,292 Fleet Financial Group, Inc..... 679,915
12,169 Mellon Bank Corp............... 689,830
11,011 National City Corp............. 734,984
1,751 Wells Fargo & Co............... 537,995
------------
7,398,118
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
BANKS - REGIONAL - 3.19%
31,976 BANC ONE CORP.................. $ 1,642,766
5,683 Barnett Banks, Inc............. 399,941
2,589 CoreStates Financial Corp...... 200,162
5,812 Huntington Bancshares, Inc..... 197,608
6,857 KeyCorp........................ 462,419
27,905 NationsBank Corp............... 1,676,044
24,817 Norwest Corp................... 929,086
8,764 PNC Bank Corp.................. 471,613
2,556 State Street Corp.............. 152,082
8,579 SunTrust Banks, Inc............ 609,109
5,052 U.S. Bancorp................... 543,406
737 Wachovia Corp.................. 56,749
------------
7,340,985
------------
BEVERAGE - BREWERS/
DISTRIBUTORS - 0.80%
29,984 Anheuser-Busch Companies, Inc.. 1,294,934
16,697 Seagram Co. Ltd................ 539,522
------------
1,834,456
------------
BEVERAGE - SOFT DRINKS - 3.37%
94,862 Coca-Cola Co................... 5,928,875
49,780 PepsiCo, Inc................... 1,835,638
------------
7,764,513
------------
BROADCASTING - 1.19%
6,226 Comcast Corp. Class A Special.. 174,328
13,155* Tele-Comm Liberty Media Group
Class A....................... 301,332
30,242 U S West Communications Group.. 1,366,560
12,644* U S West Media Group........... 335,856
15,965* Viacom, Inc. Class B........... 558,775
------------
2,736,851
------------
BUILDING MATERIALS - 0.39%
11,756 Masco Corp..................... 554,002
1,813 RPM, Inc....................... 36,260
10,674 Sherwin-Williams Co............ 304,875
------------
895,137
------------
CHEMICAL - MAJOR - 1.08%
10,394 Morton International, Inc...... 354,046
21,696 PPG Industries, Inc............ 1,257,012
6,882 Rohm and Haas Co............... 632,714
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
CHEMICAL - MAJOR - Continued
5,478 Union Carbide Corp............. $ 241,717
------------
2,485,489
------------
CHEMICAL - MISCELLANEOUS - 0.55%
6,257 Ecolab Inc..................... 319,107
11,703 Ethyl Corp..................... 104,596
4,664 Lubrizol Corp.................. 181,896
3,076 Millipore Corp................. 119,195
108 Nalco Chemical Co.............. 4,192
7,986 Praxair, Inc................... 350,885
2,480 W. R. Grace & Co............... 180,420
------------
1,260,291
------------
CONGLOMERATES - 0.49%
3,236 Ogden Corp..................... 86,159
26,770 Tyco International Ltd......... 1,050,723
------------
1,136,882
------------
CONSUMER FINANCE - 0.39%
2,387 Beneficial Corp................ 185,291
26,670 MBNA Corp...................... 708,422
------------
893,713
------------
CONTAINERS - METAL/GLASS - 0.35%
9,975 Corning Inc.................... 423,314
6,479 Crown Cork & Seal Co., Inc..... 316,256
1,636* Owens-Illinois, Inc............ 55,420
------------
794,990
------------
CONTAINERS - PAPER - 0.15%
6,007 Bemis Co., Inc................. 253,045
2,847 Sonoco Products Co............. 93,416
------------
346,461
------------
COSMETICS/TOILETRIES - 1.11%
3,423 Avon Products, Inc............. 197,892
22,056 Gillette Co.................... 2,036,045
6,440 International Flavors &
Fragrances, Inc............... 310,328
------------
2,544,265
------------
DRUGS - 6.88%
25,318 American Home Products Corp.... 1,769,094
2,726* Amgen Inc...................... 139,367
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 54
================================================================================
52 SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
DRUGS - Continued
39,599 Bristol Myers Squibb Co........ $ 3,707,456
40,522 Eli Lilly and Co............... 2,555,419
49,468 Merck & Co., Inc............... 4,677,818
25,773 Schering-Plough Corp........... 1,615,645
9,854 Warner-Lambert Co.............. 1,378,328
------------
15,843,127
------------
ELECTRICAL EQUIPMENT - 1.15%
16,127 AMP Inc........................ 700,517
160* Cabletron Systems, Inc......... 3,680
34,311 Emerson Electric Co............ 1,887,105
1,562* Teradyne, Inc.................. 51,253
------------
2,642,555
------------
ENTERTAINMENT - 1.92%
3,016 Hasbro, Inc.................... 87,653
7,615 Mattel, Inc.................... 305,076
22,012 Time Warner Inc................ 1,282,199
29,017 Walt Disney Co................. 2,754,801
------------
4,429,729
------------
FINANCE COMPANIES - 0.48%
8,237 Green Tree Financial Corp...... 252,258
5,663 Household International, Inc... 713,538
3,247 SunAmerica, Inc................ 131,504
------------
1,097,300
------------
FINANCIAL SERVICES - 1.18%
29,824 American Express Co............ 2,352,367
4,444 Countrywide Credit Industries,
Inc. ......................... 181,926
4,652 H & R Block Inc................ 190,732
------------
2,725,025
------------
FOODS - 2.90%
23,781 Archer Daniels Midland Co...... 508,319
17,582 Campbell Soup Co............... 984,592
22,697 ConAgra, Inc................... 815,673
1,522 CPC International Inc.......... 157,337
13,991 General Mills, Inc............. 1,035,334
18,236 H J Heinz Co................... 912,940
4,487 Hershey Foods Corp............. 275,390
18,869 Kellogg Co..................... 875,050
6,793 Quaker Oats Co................. 360,029
3,790 Ralston Purina Co.............. 352,470
4,470 Tyson Foods, Inc. Class A...... 81,019
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
FOODS - Continued
3,894 Wm. Wrigley Jr. Co............. $ 308,113
------------
6,666,266
------------
FOOTWEAR - 0.24%
10,849 NIKE, Inc. Class B............ 528,211
393* Reebok International Ltd....... 15,450
------------
543,661
------------
FREIGHT - 0.18%
6,151* Federal Express Corp........... 412,501
------------
FUNERAL SERVICES - 0.22%
14,023 Service Corp. International.... 512,716
------------
GOLD MINING - 0.12%
11,446 Barrick Gold Corp.............. 189,574
7,697 Placer Dome Inc................ 94,288
------------
283,862
------------
GOVERNMENT SPONSORED - 1.80%
32,722 Federal Home Loan Mortgage
Corp. ........................ 1,349,783
52,870 Federal National Mortgage
Association................... 2,792,197
------------
4,141,980
------------
HEALTHCARE - 0.25%
188 Cardinal Health, Inc........... 14,241
9,493* HealthSouth Corp............... 249,191
1,538* Oxford Health Plans, Inc....... 36,720
5,376 United HealthCare Corp......... 279,888
------------
580,040
------------
HEAVY DUTY TRUCKS/PARTS - 0.46%
3,439 Cummins Engine Co., Inc........ 221,386
9,838 Dana Corp...................... 459,927
3,735* Navistar International Corp.... 82,170
5,290 PACCAR Inc..................... 290,950
------------
1,054,433
------------
HOSPITAL MANAGEMENT - 0.37%
21,837 Columbia/HCA Healthcare Corp... 644,192
6,346* Tenet Healthcare Corp.......... 201,089
564* Vencor, Inc.................... 13,677
------------
858,958
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
HOSPITAL SUPPLIES - 3.57%
39,205 Abbott Laboratories............ $ 2,548,325
542 Bard (C. R.), Inc.............. 16,226
15,973 Baxter International Inc....... 808,633
6,432* Boston Scientific Corp......... 290,646
57,463 Johnson & Johnson.............. 3,616,578
19,705 Medtronic, Inc................. 940,914
------------
8,221,322
------------
HOUSEHOLD PRODUCTS - 3.69%
4,783 Clorox Co...................... 371,280
14,769 Colgate-Palmolive Co........... 986,754
6,566 Newell Co...................... 267,975
61,719 Procter & Gamble Co............ 4,709,931
7,194 Rubbermaid, Inc................ 174,455
34,008 Unilever N V - ADR............. 1,974,590
------------
8,484,985
------------
HUMAN RESOURCES - 0.01%
519 Olsten Corp.................... 7,720
------------
INFORMATION PROCESSING - 10.09%
4,742* Apple Computer, Inc............ 84,171
1,807 Autodesk, Inc.................. 69,457
12,777 Automatic Data Processing,
Inc. ......................... 718,706
5,408* Bay Networks, Inc.............. 162,578
19,419* Cisco Systems, Inc............. 1,674,889
1,925 Cognizant Corp................. 82,534
25,170 Compaq Computer Corp........... 1,571,552
15,549 Computer Associates
International, Inc............ 809,520
11,533* Dell Computer Corp............. 970,934
12,354* E M C Corp..................... 374,481
19,306 First Data Corp................ 546,601
2,419 HBO & Co....................... 108,553
37,679 Hewlett Packard Co............. 2,300,774
36,689 International Business Machine
Corp. ........................ 4,019,739
40,314* Microsoft Corp................. 5,704,431
7,739* Nextlevel Systems Inc.......... 102,542
509* Novell, Inc ................... 4,708
32,825* Oracle Corp.................... 1,093,483
439 Parametric Technology Corp..... 22,197
5,959 Pitney Bowes Inc............... 500,928
2,244 Reynolds and Reynolds Co.
Class A ...................... 42,917
7,507* Seagate Technology............. 170,314
5,510* Silicon Graphics, Inc.......... 72,319
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 55
================================================================================
SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS CONTINUED 53
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
INFORMATION PROCESSING - Continued
14,897* Sun Microsystems, Inc.......... $ 536,292
10,473* 3Com Corp...................... 379,646
13,850 Xerox Corp..................... 1,075,972
------------
23,200,238
------------
INSURANCE - CASUALTY - 0.38%
6,615 Chubb Corp..................... 469,252
5,693 SAFECO Corp.................... 278,244
1,624 St. Paul Companies, Inc........ 129,920
------------
877,416
------------
INSURANCE - LIFE - 0.28%
4,626 Aetna Inc...................... 348,685
2,613 Conseco Inc.................... 121,668
2,412 Lincoln National Corp.......... 172,157
------------
642,510
------------
INSURANCE - MISCELLANEOUS - 0.16%
1,808 General Reinsurance Corp....... 358,888
------------
INSURANCE - MULTILINE - 3.81%
15,795 Allstate Corp.................. 1,356,396
27,603 American International Group,
Inc. ......................... 2,782,727
8,742 Aon Corp....................... 462,780
3,793 CIGNA Corp..................... 634,379
6,416 Hartford Financial Services
Group ........................ 537,340
14,244 Marsh & McLennan Companies
Inc. ......................... 1,060,288
38,498 Travelers Group, Inc........... 1,944,127
------------
8,778,037
------------
LEISURE TIME - 0.18%
11,045 Brunswick Corp................. 369,317
564 Callaway Golf Co............... 17,978
1,101* Mirage Resorts, Inc............ 26,149
------------
413,444
------------
LODGING - 0.28%
3,077* HFS, Inc....................... 211,159
6,339 Hilton Hotels Corp............. 197,301
3,230 Marriott International, Inc.... 233,973
------------
642,433
------------
MACHINERY - AGRICULTURE - 0.16%
6,705 Deere & Co..................... 367,518
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.46%
18,519 Caterpillar Inc................ $ 887,755
5,225 Foster Wheeler Corp............ 160,995
------------
1,048,750
------------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.89%
7,401 Cooper Industries, Inc......... 382,077
3,768 Dover Corp..................... 252,692
9,761 Illinois Tool Works Inc........ 535,025
10,369 Ingersoll-Rand Co.............. 423,833
4,386 Johnson Controls, Inc.......... 200,934
2,529 Pall Corp...................... 53,425
5,859 Timken Co...................... 207,628
------------
2,055,614
------------
MEDICAL TECHNOLOGY - 0.08%
2,870 Guidant Corp................... 184,398
------------
MERCHANDISE - DRUG - 0.29%
1,610 CVS Corp....................... 106,864
17,447 Walgreen Co.................... 561,575
------------
668,439
------------
MERCHANDISE - SPECIALTY - 1.34%
136 American Greetings Corp.
Class A....................... 4,998
261* CostCo Companies, Inc.......... 11,566
18,852 Fortune Brands, Inc........... 682,207
7,885 Gap, Inc....................... 423,326
23,180 Home Depot, Inc................ 1,296,631
5,494 Jostens, Inc................... 131,856
13,131 Limited, Inc................... 315,965
6,130* Toys "R" Us, Inc............... 209,186
------------
3,075,735
------------
MERCHANDISING - DEPARTMENT - 0.27%
3,673 Dayton Hudson Corp............. 244,025
6,991 May Department Stores Co....... 375,766
------------
619,791
------------
MERCHANDISING - FOOD - 0.09%
3,017 American Stores Co............. 59,773
1,416 Giant Food Inc. Class A........ 47,790
1,125 Supervalu Inc.................. 44,227
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
MERCHANDISING - FOOD - Continued
1,449 Winn-Dixie Stores, Inc......... $ 58,594
------------
210,384
------------
MERCHANDISING - MASS - 2.44%
9,974 CUC International Inc.......... 286,753
13,383 J.C. Penney Co., Inc........... 859,858
6,434* KMart Corp..................... 80,827
19,472 Sears Roebuck and Co........... 892,060
87,132 Wal-Mart Stores, Inc........... 3,479,834
824* Woolworth Corp................. 17,819
------------
5,617,151
------------
METALS - ALUMINUM - 0.19%
16,243 Alcan Aluminium Ltd............ 437,546
------------
METALS - COPPER - 0.14%
10,946 Newmont Mining Corp............ 329,064
------------
METALS - MISCELLANEOUS - 0.30%
5,460 Engelhard Corp................. 97,256
9,048 Freeport-McMoRan Copper &
Gold Inc. Class B............. 189,443
10,777 Inco Limited................... 205,437
3,384 Precision Castparts Corp....... 200,925
------------
693,061
------------
METALS - STEEL - 0.16%
1,816 Carpenter Technology Corp...... 85,579
2,095 Lukens Inc..................... 35,091
3,563 Nucor Corp..................... 178,150
3,048 Oregon Steel Mills, Inc........ 59,817
------------
358,637
------------
MISCELLANEOUS - 0.05%
558* Corrections Corp. of America... 19,321
2,741 Equifax Inc.................... 93,537
------------
112,858
------------
NATURAL GAS - DIVERSIFIED - 0.33%
1,267 El Paso Natural Gas Co......... 77,762
4,128 Questar Corp................... 161,766
2,195* Seagull Energy Corp............ 50,073
10,677 Sonat Inc...................... 465,117
------------
754,718
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 56
================================================================================
54 SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
OIL - INTEGRATED DOMESTIC - 2.24%
9,487 Amerada Hess Corp.............. $ 531,272
4,931 Ashland Oil, Inc............... 230,215
23,442 Burlington Resources, Inc..... 1,043,169
2,971* Oryx Energy Co................. 80,217
6,619 Pennzoil Co.................... 440,991
36,949 Phillips Petroleum Co.......... 1,789,717
4,100 Sun Co., Inc................... 165,794
25,685 USX-Marathon Group............. 879,711
------------
5,161,086
------------
OIL - INTEGRATED INTERNATIONAL - 1.63%
6,294 Murphy Oil Corp................ 346,170
60,223 Texaco Inc..................... 3,402,600
------------
3,748,770
------------
OIL - SERVICES - 1.83%
8,626 Baker Hughes Inc............... 361,214
10,475 Dresser Industries, Inc........ 391,503
6,369 Global Marine Inc.............. 167,584
12,294 Halliburton Co................. 663,108
1,704 Nabors Industries, Inc......... 59,747
696 Rowan Companies, Inc........... 23,664
28,347 Schlumberger Ltd............... 2,333,311
2,480 Smith International, Inc....... 158,720
239 Western Atlas Inc.............. 16,625
1,312 Witco Corp..................... 56,580
------------
4,232,056
------------
OIL/GAS PRODUCERS - 0.76%
3,308 Anadarko Petroleum Corp........ 215,020
7,115 Apache Corp.................... 261,476
232 Helmerich & Payne, Inc......... 17,647
3,785 Noble Affiliates, Inc.......... 140,518
3,438 Pioneer Natural Resources Corp. 109,801
8,511 Ranger Oil Ltd................. 60,109
8,717 Ultramar Diamond Shamrock...... 265,324
25,199 Union Pacific Res. Group Inc... 626,825
1,678 Valero Energy Corp............. 52,647
------------
1,749,367
------------
PAPER/FOREST PRODUCTS - 1.19%
3,157 Avery Dennison Corp............ 132,198
1,865 Bowater Inc.................... 83,692
16,375 Fort James Corp................ 640,672
20,498 Kimberly-Clark Corp............ 1,067,177
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
PAPER/FOREST PRODUCTS - Continued
6,904 Longview Fibre Co.............. $ 111,327
5,086 Louisiana Pacific Corp......... 102,674
3,577 Mead Corp...................... 230,940
9,409 Unisource Worldwide, Inc....... 147,604
6,815 Willamette Industries, Inc..... 239,377
------------
2,755,661
------------
POLLUTION CONTROL - 0.33%
2,988 Browning-Ferris Industries Inc. 106,634
26,272 Waste Management, Inc.......... 646,948
------------
753,582
------------
PUBLISHING - NEWS - 0.69%
1,566 Dow Jones & Co., Inc........... 79,181
15,862 Gannett Co., Inc............... 920,987
2,766 Knight-Ridder, Inc............. 138,646
4,424 Times Mirror Co................ 262,675
3,232 Tribune Co..................... 182,204
------------
1,583,693
------------
PUBLISHING/PRINTING - 0.51%
11,557 Deluxe Corp.................... 408,107
4,480 Dun & Bradstreet Corp.......... 125,440
6,625 McGraw-Hill, Inc............... 453,398
12,444 Moore Corp. Ltd................ 193,660
------------
1,180,605
------------
RAILROAD - 1.08%
2,483 Burlington Northern Santa Fe... 227,195
12,643 CSX Corp...................... 661,387
24,901 Norfolk Southern Corp.......... 792,163
13,532 Union Pacific Corp............. 811,920
------------
2,492,665
------------
RESTAURANTS - 0.61%
28,315 McDonald's Corp................ 1,373,278
987* Tricon Global Restaurants, Inc. 33,373
------------
1,406,651
------------
SAVINGS & LOAN - 0.31%
10,321 Washington Mutual, Inc......... 713,439
------------
SECURITIES RELATED - 1.30%
2,451 A.G. Edwards, Inc.............. 83,028
1,275 Bear Stearns Co. Inc........... 52,913
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
SECURITIES RELATED - Continued
7,950 Charles Schwab Corp............ $ 306,572
15,457 Merrill Lynch & Co., Inc....... 1,084,888
26,906 Morgan Stanley, Dean Witter,
Discover and Co............... 1,461,335
------------
2,988,736
------------
SEMICONDUCTOR EQUIPMENT - 0.27%
15,306* Applied Materials, Inc......... 505,098
3,273* KLA-Tencor Corp................ 126,829
------------
631,927
------------
SEMICONDUCTORS - 2.41%
2,149* Advanced Micro Devices, Inc.... 46,874
57,423 Intel Corp..................... 4,457,460
2,792* LSI Logic Corp................. 64,914
6,301* Micron Technology, Inc......... 156,737
17,063 Rockwell International Corp.... 831,820
------------
5,557,805
------------
TELECOMMUNICATIONS - 1.95%
1,383* Airtouch Communications, Inc... 54,283
3,099* DSC Communications Corp........ 69,921
2,408 Frontier Corp.................. 58,996
26,308 Lucent Technologies, Inc....... 2,107,929
12,050 Northern Telecom Ltd........... 1,082,241
3,360* Tellabs, Inc................... 174,720
29,423* WorldCom, Inc.................. 941,536
------------
4,489,626
------------
TEXTILE - PRODUCTS - 0.04%
842 V F Corp....................... 38,890
2,413 Wellman, Inc................... 51,125
------------
90,015
------------
UTILITIES - COMMUNICATION - 6.50%
30,249 Ameritech Corp................. 2,331,064
50,432 AT & T Corp.................... 2,817,887
35,862 Bell Atlantic Corp............. 3,200,684
46,271 BellSouth Corp................. 2,533,337
17,280 MCI Communications Corp........ 759,240
35,814 SBC Communications, Inc........ 2,607,707
12,201 Sprint Corp.................... 714,521
------------
14,964,440
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 57
================================================================================
SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS CONTINUED 55
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -----------------------------------------------------------
<S> <C> <C>
UTILITIES - ELECTRIC - 2.64%
6,047* AES Corp....................... $ 221,470
17,172 Allegheny Energy, Inc.......... 520,526
3,150 Central Louisiana Electric
Co., Inc. .................... 91,547
22,115 Cinergy Corp................... 787,847
4,419 Hawaiian Electric Industries,
Inc. ......................... 172,065
4,046 Idaho Power Co................. 136,047
3,167 Indiana Energy, Inc............ 89,072
9,325 LG&E Energy Corp............... 208,647
4,654 Minnesota Power & Light Co..... 180,052
7,664 Montana Power Co............... 209,802
6,977 Nevada Power Co................ 161,779
11,423 New Century Energies, Inc...... 505,468
5,353 OGE Energy Corp................ 272,334
41,089 PacifiCorp..................... 957,887
16,620 Potomac Electric Power Co...... 411,345
11,860 Puget Sound Energy Inc......... 327,633
18,352 TECO Energy, Inc............... 470,270
7,067 UtiliCorp United Inc........... 241,603
4,335 Washington Gas Light Co........ 116,232
------------
6,081,626
------------
UTILITIES - GAS, DISTRIBUTION - 0.38%
7,945 AGL Resources, Inc............. 155,921
4,119 Keyspan Energy Corp............ 137,214
5,350 National Fuel Gas Co........... 249,778
3,642 NICOR Inc...................... 146,591
5,597 Tosco Corp..................... 182,252
------------
871,756
------------
UTILITIES - GAS, PIPELINE 1.32%
3,343 Columbia Gas System, Inc....... 243,203
13,375 Consolidated Natural Gas Co.... 807,516
29,351 Enron Corp..................... 1,137,351
796 ONEOK Inc...................... 29,751
11,684 Pacific Enterprises............ 413,322
4,918 Peoples Energy Corp............ 180,122
4,445 Williams Companies, Inc........ 237,530
------------
3,048,795
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- -----------------------------------------------------------
<S> <C> <C>
TOTAL COMMON STOCKS
(Cost $190,086,158)............ $222,063,435
------------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 3.03%
SECURITIES RELATED - 3.03%
Merrill Lynch & Co., Inc.:
$2,539,000 5.68% due 12/3/19............. 2,538,199
2,583,000 5.58% due 12/2/97............. 2,582,600
1,865,000 5.55% due 12/1/19............. 1,865,000
------------
6,985,799
------------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $6,985,799).............. 6,985,799
------------
UNITED STATES GOVERNMENT
SHORT TERM - 0.17%
U.S. TREASURY BILLS - 0.17%
United States Treasury Bills:
100,000 4.88% due 12/11/97............ 99,863
100,000 4.80% due 12/11/97............ 99,867
200,000 4.67% due 12/11/97............ 199,741
------------
399,471
------------
TOTAL UNITED STATES GOVERNMENT
SHORT TERM
(Cost $399,471)................ 399,471
------------
TOTAL INVESTMENTS
(Cost $197,471,428) - 99.67%... 229,448,705
Other assets less liabilities,
net - 0.33%................... 748,522
------------
NET ASSETS (equivalent
to $20.12 per share on
11,439,048 shares
outstanding) - 100%........... $230,197,227
============
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
- ------------------------------------------------------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/97)
26(2) S&P 500 Index Futures
(December/$954.90)............. $ 132,950
============
(1) U.S.Treasury Bills with a market value of
approximately $400,000 were maintained in a
segregated account with a portion placed as
collateral for futures contracts.
(2) Per 250
- ------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
11,439,048 shares outstanding........... $ 114,390
Additional paid in capital................ 173,483,042
Undistributed net realized gain on
securities .............................. 24,323,059
Undistributed net investment income....... 166,509
Unrealized appreciation of:
Investments........... $31,977,277
-----------
Futures .............. 132,950 32,110,227
----------- ------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................. $230,197,227
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 58
================================================================================
56 SOCIAL AWARENESS FUND - FINANCIAL STATEMENTS (Unaudited)
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................ $ 1,617,366
Interest............................................................. 165,629
-----------
Total investment income............................................ 1,782,995
-----------
EXPENSES:
Advisory fees........................................................ 491,183
Custodian and accounting services.................................... 23,623
Reports to shareholders.............................................. 13,189
Audit fees and tax services.......................................... 3,424
Directors' fees and expenses......................................... 1,920
Miscellaneous........................................................ 3,175
-----------
Total expenses..................................................... 536,514
-----------
NET INVESTMENT INCOME................................................ 1,246,481
-----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on:
Investments.......................................... $15,101,982
Futures Contracts.................................... 458,886 15,560,868
----------- -----------
Net unrealized appreciation of securities during
the period:
Investments.......................................... 5,242,192
-----------
Futures Contracts.................................... 42,300 5,284,492
----------- -----------
Net realized and unrealized gain on securities during the period:......... 20,845,360
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................. $22,091,841
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ................................................. $ 1,246,481 $ 1,619,474
Net realized gain on securities ....................................... 15,560,868 13,356,463
Net unrealized appreciation of securities during the period ........... 5,284,492 14,695,812
------------- -------------
Increase in net assets resulting from operations .................... 22,091,841 29,671,749
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................................. (1,172,000) (1,578,118)
Net realized gain on securities ....................................... -- (10,727,011)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders .................................................... (1,172,000) (12,305,129)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ...................................... 54,250,111 52,814,227
Proceeds from capital stock issued for distributions reinvested ....... 1,172,000 12,305,129
------------- -------------
55,422,111 65,119,356
Cost of capital stock repurchased ..................................... (1,493,779) (8,024,362)
------------- -------------
Increase in net assets resulting from capital stock transactions .... 53,928,332 57,094,994
------------- -------------
TOTAL INCREASE IN NET ASSETS .......................................... 74,848,173 74,461,614
NET ASSETS:
Beginning of period ................................................... 155,349,054 80,887,440
------------- -------------
End of period (including undistributed net investment income
of $166,509 and $92,028) ............................................ $ 230,197,227 $ 155,349,054
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold .......................................... 2,777,848 3,190,691
Shares issued for distributions reinvested ............................ 60,205 775,715
Shares of capital stock repurchased ................................... (76,416) (509,440)
------------- -------------
Increase in shares outstanding ...................................... 2,761,637 3,456,966
Shares outstanding:
Beginning of period ................................................. 8,677,411 5,220,445
------------- -------------
End of period ....................................................... 11,439,048 8,677,411
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 59
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS 57
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 59.59%
ADVERTISING - 0.05%
1,995 Interpublic Group Cos., Inc.... $ 95,635
----------
AEROSPACE/DEFENSE - 1.03%
14,811 Boeing Co...................... 786,834
521 Crane Co....................... 21,947
758 EG & G, Inc.................... 14,876
727 General Dynamics Corp.......... 62,976
642 Goodrich (B.F.) Co............. 28,569
3,083 Lockheed Martin Corp........... 300,785
1,032 Northrop Grumman Corp.......... 116,358
3,218* Raytheon Co.................... 180,007
1,578 TRW Inc........................ 89,552
3,734 United Technologies Corp....... 279,817
----------
1,881,721
----------
AIRLINES - 0.24%
1,326* AMR Corp....................... 160,695
1,207 Delta Air Lines, Inc........... 134,505
3,077 Southwest Airlines Co.......... 75,182
1,213* US Airways Group, Inc.......... 66,867
----------
437,249
----------
APPAREL & PRODUCTS - 0.04%
1,070* Fruit of the Loom, Inc.
Class A...................... 24,944
910 Liz Claiborne, Inc............. 45,728
----------
70,672
----------
APPLIANCES/FURNISHINGS - 0.06%
1,429 Maytag Corp.................... 46,175
1,129 Whirlpool Corp................. 61,883
----------
108,058
----------
AUTO - CARS - 0.96%
9,955 Chrysler Corp.................. 341,581
17,556 Ford Motor Co.................. 754,908
10,778 General Motors Corp............ 657,458
----------
1,753,947
----------
AUTO - REPLACEMENT PARTS - 0.21%
2,108* AutoZone, Inc.................. 63,240
900 Cooper Tire & Rubber Co........ 20,138
1,815 Echlin Inc..................... 57,513
2,826 Genuine Parts Co............... 90,432
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------
<S> <C> <C>
AUTO - REPLACEMENT PARTS - Continued
2,276 Goodyear Tire & Rubber Co...... $ 138,125
882* Pep Boys-Manny, Moe & Jack..... 22,160
----------
391,608
----------
BANKS - NEW YORK CITY - 1.17%
5,908 Bank of New York Co., Inc...... 317,555
6,379 Chase Manhattan Corp........... 692,919
6,839 CitiCorp....................... 820,253
2,784 J. P. Morgan & Co. Inc......... 317,898
----------
2,148,625
----------
BANKS - OTHER - 1.65%
10,276 BankAmerica Corp............... 750,148
2,433 BankBoston Corp................ 216,841
4,554 First Chicago Corp............. 356,350
8,762 First Union Corp............... 427,147
3,888 Fleet Financial Group, Inc..... 256,851
3,888 Mellon Bank Corp............... 220,401
3,397 National City Corp............. 226,750
1,674 Providian Financial Corp....... 73,761
1,105 Republic of New York Corp...... 120,169
1,250 Wells Fargo & Co............... 384,063
----------
3,032,481
----------
BANKS - REGIONAL - 2.01%
8,637 BANC ONE CORP.................. 443,726
3,130 Barnett Banks, Inc............. 220,274
1,620 Comerica Inc................... 138,004
2,518 CoreStates Financial Corp...... 194,673
2,538 Fifth Third Bancorp............ 178,929
3,200 Huntington Bancshares, Inc..... 108,800
3,240 KeyCorp........................ 218,497
10,550 NationsBank Corp............... 633,659
10,836 Norwest Corp................... 405,673
4,473 PNC Bank Corp.................. 240,703
2,300 State Street Corp.............. 136,850
3,385 SunTrust Banks, Inc............ 240,335
3,407 U.S. Bancorp................... 366,465
2,052 Wachovia Corp.................. 158,004
----------
3,684,592
----------
BEVERAGE - BREWERS/
DISTRIBUTORS - 0.31%
478 Adolph Coors Class B........... 17,208
7,496 Anheuser-Busch Companies, Inc.. 323,734
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- -------------------------------------------------------
<S> <C> <C>
BEVERAGE - BREWERS/
DISTRIBUTORS - Continued
733 Brown-Forman Corp. Class B..... $ 37,658
5,625 Seagram Co. Ltd................ 181,758
----------
560,358
----------
BEVERAGE - SOFT DRINKS - 1.69%
36,499 Coca-Cola Co................... 2,281,188
22,261 PepsiCo, Inc................... 820,874
----------
3,102,062
----------
BROADCASTING - 0.83%
10,702 CBS Corp....................... 321,060
1,800* Clear Channel Communications,
Inc. ......................... 121,950
5,084 Comcast Corp. Class A Special.. 142,352
7,267* Tele-Comm Liberty Media Group
Class A....................... 166,460
7,365 U S West Communications Group.. 332,806
9,163* U S West Media Group........... 243,392
5,650 Viacom, Inc. Class B........... 197,750
----------
1,525,770
----------
BUILDING MATERIALS - 0.18%
505 Armstrong World Industries,
Inc. .......................... 34,813
2,292 Lowe's Companies, Inc.......... 105,289
2,467 Masco Corp..................... 116,257
2,868 Sherwin-Williams Co............ 81,917
----------
338,276
----------
CHEMICAL - MAJOR - 1.18%
3,019 Dow Chemical Co................ 298,126
16,962 E.I. du Pont de Nemours
and Co. ....................... 1,027,261
1,453 Hercules, Inc.................. 70,561
8,408 Monsanto Co.................... 367,325
1,910 Morton International, Inc...... 65,059
2,535 PPG Industries, Inc............ 146,872
1,143 Rohm and Haas Co............... 105,085
1,920 Union Carbide Corp............. 84,720
----------
2,165,009
----------
CHEMICAL - MISCELLANEOUS - 0.34%
1,661 Air Products and Chemicals Inc. 127,378
1,188 Eastman Chemical Co............ 71,725
1,453 Ecolab Inc..................... 74,103
364* FMC Corp....................... 26,595
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 60
================================================================================
58 ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
CHEMICAL - MISCELLANEOUS - Continued
331 Great Lakes Chemical Corp...... $ 14,854
1,073 Millipore Corp................. 41,579
904 Nalco Chemical Co.............. 35,087
2,486 Praxair, Inc................... 109,229
936 Sigma Aldrich Corp............. 33,813
1,187 W. R. Grace & Co............... 86,354
------------
620,717
------------
COAL - 0.01%
200 NACCO Industries, Inc.
Class A. ..................... 21,775
------------
CONGLOMERATES - 0.64%
8,760 Allied Signal Inc.............. 325,215
1,200 ITT Industries, Inc............ 38,100
1,581 Loews Corp..................... 167,784
2,551 Tenneco Inc.................... 110,490
2,656 Textron Inc.................... 157,036
8,558 Tyco International Ltd......... 335,902
1,754 Whitman Corp................... 46,152
------------
1,180,679
------------
CONSUMER FINANCE- 0.14%
766 Beneficial Corp................ 59,461
7,841 MBNA Corp...................... 208,277
------------
267,738
------------
CONTAINERS - METAL/GLASS - 0.20%
300 Ball Corp...................... 11,550
3,792 Corning Inc.................... 160,923
1,993 Crown Cork & Seal Co., Inc..... 97,283
607 Owens Corning.................. 22,307
2,100* Owens-Illinois, Inc............ 71,138
------------
363,201
------------
CONTAINERS - PAPER - 0.05%
1,232 Bemis Co., Inc................. 51,898
890 Temple-Inland Inc.............. 50,841
------------
102,739
------------
COSMETICS/TOILETRIES - 0.53%
699 Alberto-Culver Co. Class B..... 21,800
1,757 Avon Products, Inc............. 101,576
8,146 Gillette Co.................... 751,978
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
COSMETICS/TOILETRIES - Continued
1,971 International Flavors &
Fragrances, Inc............... $ 94,977
------------
970,331
------------
DRUGS - 4.32%
1,175 Allergan, Inc.................. 39,803
1,414* ALZA Corp...................... 37,736
9,678 American Home Products Corp.... 676,250
3,726* Amgen Inc...................... 190,492
592 Bausch & Lomb Inc.............. 23,458
14,614 Bristol Myers Squibb Co........ 1,368,236
16,160 Eli Lilly and Co............... 1,019,090
18,137 Merck & Co., Inc............... 1,715,080
18,742 Pfizer, Inc.................... 1,363,481
7,611 Pharmacia & Upjohn, Inc........ 256,871
10,654 Schering-Plough Corp........... 667,873
3,918 Warner-Lambert Co.............. 548,030
------------
7,906,400
------------
ELECTRICAL EQUIPMENT - 2.35%
3,137 AMP Inc........................ 136,263
2,384* Cabletron Systems, Inc......... 54,832
6,488 Emerson Electric Co............ 356,840
48,202 General Electric Co............ 3,554,898
1,110 National Service Industries,
Inc. ......................... 51,961
298 Raychem Corp................... 28,180
950 Thomas & Betts Corp............ 43,106
748 W. W. Grainger Inc............. 70,032
------------
4,296,112
------------
ELECTRONIC INSTRUMENTS - 0.11%
1,091 General Signal Corp............ 44,526
706 Perkin-Elmer Corp.............. 49,111
750 Tektronix, Inc................. 31,453
2,076* Thermo Electron Corp........... 76,423
------------
201,513
------------
ENTERTAINMENT - 0.92%
1,839* Harrah's Entertainment, Inc.... 36,895
2,066 Hasbro, Inc.................... 60,043
268* King World Productions, Inc.... 14,572
4,261 Mattel, Inc.................... 170,706
8,063 Time Warner Inc................ 469,669
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
ENTERTAINMENT - Continued
9,904 Walt Disney Co................. $ 940,261
------------
1,692,146
------------
FINANCE COMPANIES - 0.27%
2,056 Green Tree Financial Corp...... 62,965
1,578 Household International, Inc... 198,828
1,493* ITT Corp....................... 113,281
2,800 SunAmerica, Inc................ 113,400
------------
488,474
------------
FINANCIAL SERVICES - 0.37%
7,221 American Express Co............ 569,556
1,300 Countrywide Credit Industries,
Inc. ......................... 53,219
1,659 H & R Block Inc................ 68,019
------------
690,794
------------
FOODS - 1.51%
8,318 Archer Daniels Midland Co...... 177,797
6,450 Campbell Soup Co............... 361,200
7,382 ConAgra, Inc................... 265,291
1,869 CPC International Inc.......... 193,208
2,834 General Mills, Inc............. 209,716
5,034 H J Heinz Co................... 252,014
2,044 Hershey Foods Corp............. 125,451
6,232 Kellogg Co..................... 289,009
1,072 Pioneer Hi-Bred International,
Inc. ......................... 109,478
2,419 Quaker Oats Co................. 128,207
1,700 Ralston Purina Co.............. 158,100
6,596 Sara Lee Corp.................. 348,763
1,876 Wm. Wrigley Jr. Co............. 148,438
------------
2,766,672
------------
FOOTWEAR - 0.14%
4,231 NIKE, Inc. Class B............ 205,996
1,095* Reebok International Ltd....... 43,047
------------
249,043
------------
FREIGHT - 0.10%
1,874* Federal Express Corp........... 125,675
1,363 Ryder System, Inc.............. 49,494
------------
175,169
------------
FUNERAL SERVICES - 0.08%
4,045 Service Corp. International.... 147,895
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 61
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS CONTINUED 59
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
GOLD MINING - 0.09%
5,583 Barrick Gold Corp.............. $ 92,468
1,600 Battle Mountain Gold Co........ 8,100
2,600* Echo Bay Mines Ltd............. 6,013
1,971 Homestake Mining Co............ 20,696
3,779 Placer Dome Inc................ 46,293
------------
173,570
------------
GOVERNMENT SPONSORED - 0.70%
10,680 Federal Home Loan Mortgage
Corp. ........................ 440,550
15,825 Federal National Mortgage
Association .................. 835,757
------------
1,276,307
------------
HARDWARE & TOOLS - 0.07%
1,084 Black & Decker Corp............ 39,837
784 Snap-on Inc.................... 34,447
1,088 Stanley Works.................. 47,940
------------
122,224
------------
HEALTHCARE - 0.26%
1,800 Cardinal Health, Inc........... 136,350
5,168* HealthSouth Corp............... 135,660
2,769* Humana Inc..................... 61,437
2,905 United HealthCare Corp......... 151,241
------------
484,688
------------
HEAVY DUTY TRUCKS/PARTS - 0.17%
706 Cummins Engine Co., Inc........ 45,449
1,624 Dana Corp...................... 75,922
978 Eaton Corp..................... 92,360
1,127* Navistar International Corp.... 24,794
1,388 PACCAR Inc..................... 76,340
------------
314,865
------------
HOME BUILDERS - 0.02%
316 Centex Corp.................... 20,026
595 Kaufman & Broad Home Corp...... 12,904
------------
32,930
------------
HOSPITAL MANAGEMENT - 0.27%
1,500* Beverly Enterprises, Inc....... 25,500
9,536 Columbia/HCA Healthcare Corp... 281,312
722 Manor Care, Inc................ 25,451
320 Shared Medical Systems Corp.... 20,480
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
HOSPITAL MANAGEMENT - Continued
4,281* Tenet Healthcare Corp.......... $ 135,654
------------
488,397
------------
HOSPITAL SUPPLIES - 1.59%
11,724 Abbott Laboratories............ 762,060
1,019 Bard (C. R.), Inc.............. 30,506
4,110 Baxter International Inc....... 208,068
1,697 Becton, Dickinson and Co....... 87,501
1,000 Biomet, Inc.................... 23,875
2,973* Boston Scientific Corp......... 134,342
19,648 Johnson & Johnson.............. 1,236,596
1,022 Mallinckrodt, Inc.............. 37,814
6,732 Medtronic, Inc................. 321,453
1,647* St. Jude Medical, Inc.......... 48,792
1,022 United States Surgical Corp.... 26,955
------------
2,917,962
------------
HOUSEHOLD PRODUCTS - 1.79%
1,848 Clorox Co...................... 143,451
4,416 Colgate-Palmolive Co........... 295,044
6,143 Minnesota Mining &
Manufacturing Co.............. 598,559
2,310 Newell Co...................... 94,277
20,138 Procter & Gamble Co............ 1,536,781
2,190 Rubbermaid, Inc................ 53,108
812 Tupperware Corp................ 19,387
9,232 Unilever N V - ADR............. 536,033
------------
3,276,640
------------
INFORMATION PROCESSING - 5.80%
1,100 Adobe Systems Inc.............. 46,200
1,928* Apple Computer, Inc............ 34,222
835 Autodesk, Inc.................. 32,095
3,929 Automatic Data Processing,
Inc. ......................... 221,006
2,982* Bay Networks, Inc.............. 89,646
832* Ceridian Corp.................. 36,504
9,689* Cisco Systems, Inc............. 835,676
2,701 Cognizant Corp................. 115,805
11,239 Compaq Computer Corp........... 701,751
7,934 Computer Associates
International, Inc............ 413,038
1,135* Computer Sciences Corp......... 89,878
1,114* Data General Corp.............. 19,982
5,014* Dell Computer Corp............. 422,116
2,110* Digital Equipment Corp......... 103,917
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
INFORMATION PROCESSING - Continued
7,122* E M C Corp..................... $ 215,885
6,898 First Data Corp................ 195,300
2,600 HBO & Co....................... 116,675
15,465 Hewlett Packard Co............. 944,332
1,465 Honeywell Inc.................. 95,958
14,574 International Business
Machine Corp.................. 1,596,764
17,857* Microsoft Corp................. 2,526,766
2,547* Nextlevel Systems Inc.......... 33,748
4,584* Novell, Inc. .................. 42,402
14,520* Oracle Corp.................... 483,698
1,578 Parametric Technology Corp..... 79,788
2,153 Pitney Bowes Inc............... 180,987
3,718* Seagate Technology............. 84,352
2,799* Silicon Graphics, Inc.......... 36,737
5,878* Sun Microsystems, Inc.......... 211,608
4,944* 3Com Corp...................... 179,220
2,800* Unisys Corp.................... 40,075
4,883 Xerox Corp..................... 379,348
------------
10,605,479
------------
INSURANCE - CASUALTY - 0.30%
2,584 Chubb Corp..................... 183,303
1,100 Progressive Corp............... 112,200
2,153 SAFECO Corp.................... 105,228
1,283 St. Paul Companies, Inc........ 102,640
2,079 USF & G Corp................... 41,970
------------
545,341
------------
INSURANCE - LIFE - 0.38%
2,397 Aetna Inc...................... 180,674
2,698 Conseco Inc.................... 125,626
1,164 Jefferson-Pilot Corp........... 88,828
1,640 Lincoln National Corp.......... 117,055
2,270 Torchmark Corp................. 92,644
887 Transamerica Corp.............. 96,295
------------
701,122
------------
INSURANCE - MISCELLANEOUS - 0.29%
1,197 General Reinsurance Corp....... 237,605
1,444 MBIA, Inc...................... 90,792
1,606 MGIC Investment Corp........... 93,851
2,114 UNUM Corp...................... 100,283
------------
522,531
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 62
================================================================================
60 ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
INSURANCE - MULTILINE - 1.69%
6,146 Allstate Corp.................. $ 527,788
10,190 American International Group,
Inc........................... 1,027,279
2,752 Aon Corp....................... 145,684
1,343 CIGNA Corp..................... 224,617
2,003 Hartford Financial Services
Group......................... 167,751
2,484 Marsh & McLennan Companies,
Inc. ......................... 184,903
16,263 Travelers Group, Inc........... 821,277
------------
3,099,299
------------
LEISURE TIME - 0.07%
1,943 Brunswick Corp................. 64,969
2,500* Mirage Resorts, Inc............ 59,375
------------
124,344
------------
LODGING - 0.22%
2,299* HFS, Inc....................... 157,769
3,710 Hilton Hotels Corp............. 115,474
1,788 Marriott International, Inc.... 129,518
------------
402,761
------------
MACHINE TOOLS - 0.01%
444 Cincinnati Milacron, Inc....... 13,126
------------
MACHINERY - AGRICULTURE - 0.15%
1,211 Case Corp...................... 75,082
3,670 Deere & Co..................... 201,162
------------
276,244
------------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.20%
5,640 Caterpillar Inc................ 270,368
1,303 Fluor Corp..................... 46,827
726 Foster Wheeler Corp............ 22,370
579 Harnischfeger Industries Inc... 22,111
------------
361,676
------------
MACHINERY - INDUSTRIAL/
SPECIALTY - 0.38%
200 Aeroquip-Vickers, Inc.......... 10,213
217 Briggs & Stratton Corp......... 11,094
1,607 Cooper Industries, Inc......... 82,961
1,610 Dover Corp..................... 107,971
3,360 Illinois Tool Works Inc........ 184,170
2,334 Ingersoll-Rand Co.............. 95,402
1,387 Johnson Controls, Inc.......... 63,542
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
MACHINERY - INDUSTRIAL/
SPECIALTY - Continued
1,795 Pall Corp...................... $ 37,919
1,504 Parker Hannifin Corp........... 66,928
1,118 Timken Co...................... 39,619
------------
699,819
------------
MEDICAL TECHNOLOGY - 0.07%
2,106 Guidant Corp................... 135,311
------------
MERCHANDISE - DRUG - 0.29%
2,489 CVS Corp....................... 165,207
697 Longs Drug Stores Corp......... 20,387
1,681 Rite Aid Corp.................. 110,526
7,104 Walgreen Co.................... 228,660
------------
524,780
------------
MERCHANDISE - SPECIALTY - 0.90%
989 American Greetings Corp.
Class A ...................... 36,346
1,451 Circuit City Stores, Inc....... 47,611
3,266* CostCo Companies, Inc.......... 144,724
2,557 Fortune Brands, Inc........... 92,531
3,965 Gap, Inc....................... 212,871
10,656 Home Depot, Inc................ 596,070
1,406 Ikon Office Solutions Inc...... 42,795
591 Jostens, Inc................... 14,184
4,344 Limited, Inc................... 104,528
1,133 Nordstrom, Inc................. 66,847
1,582 Tandy Corp..................... 68,026
2,378 TJX Companies, Inc............. 82,041
4,133* Toys "R" Us, Inc............... 141,039
------------
1,649,613
------------
MERCHANDISING - DEPARTMENT - 0.36%
3,076 Dayton Hudson Corp............. 204,362
1,630 Dillards, Inc. Class A......... 59,597
3,116* Federated Department Stores,
Inc. ......................... 141,973
3,657 May Department Stores Co....... 196,564
758 Mercantile Stores Co., Inc..... 48,986
------------
651,482
------------
MERCHANDISING - FOOD - 0.36%
3,403 Albertsons, Inc................ 151,008
4,842 American Stores Co............. 95,932
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
MERCHANDISING - FOOD - Continued
975 Fleming Companies, Inc......... $ 16,209
1,170 Giant Food Inc. Class A........ 39,488
600 Great Atlantic & Pacific Tea
Co., Inc. .................... 18,525
3,842* Kroger Co...................... 132,309
1,196 Supervalu Inc.................. 47,018
1,857 SYSCO Corp..................... 82,753
1,879 Winn-Dixie Stores, Inc......... 75,982
------------
659,224
------------
MERCHANDISING - MASS - 1.17%
5,872 CUC International Inc.......... 168,820
3,548 J.C. Penney Co., Inc........... 227,959
6,276* KMart Corp..................... 78,842
6,096 Sears Roebuck and Co........... 279,273
33,574 Wal-Mart Stores, Inc........... 1,340,862
2,161* Woolworth Corp................. 46,732
------------
2,142,488
------------
METALS - ALUMINUM - 0.18%
3,443 Alcan Aluminium Ltd............ 92,746
2,590 Aluminum Co. of America........ 174,177
1,042 Reynolds Metals Co............. 59,329
------------
326,252
------------
METALS - COPPER - 0.07%
465 ASARCO Inc..................... 11,567
2,373 Newmont Mining Corp............ 71,338
759 Phelps Dodge Corp.............. 50,284
------------
133,189
------------
METALS - MISCELLANEOUS - 0.09%
1,666 Cyprus Amax Minerals Co........ 30,509
1,674 Engelhard Corp................. 29,818
2,653 Freeport-McMoRan Copper &
Gold Inc. Class B............. 55,547
2,707 Inco Limited................... 51,602
------------
167,476
------------
METALS - STEEL - 0.12%
2,779 Allegheny Teldyne Inc.......... 71,559
1,995* Bethlehem Steel Corp........... 20,449
600 Inland Steel Industries, Inc... 11,475
1,167 Nucor Corp..................... 58,350
1,315 USX-US Steel Group, Inc........ 41,176
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 63
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS CONTINUED 61
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
METALS - STEEL - Continued
1,100 Worthington Industries, Inc.... $ 19,938
------------
222,947
------------
MISCELLANEOUS - 0.04%
2,000 Equifax Inc.................... 68,250
------------
MOBILE HOMES - 0.01%
635 Fleetwood Enterprises, Inc..... 22,662
------------
MULTIMEDIA - 0.01%
402 Meredith Corp.................. 14,020
------------
NATURAL GAS - DIVERSIFIED - 0.09%
1,381 Coastal Corp................... 80,875
363 Eastern Enterprises............ 14,611
1,441 Sonat Inc...................... 62,774
------------
158,260
------------
OIL - INTEGRATED DOMESTIC - 1.15%
1,364 Amerada Hess Corp.............. 76,384
7,344 Amoco Corp..................... 660,960
1,262 Ashland Oil, Inc............... 58,920
4,508 Atlantic Richfield Co.......... 367,402
2,863 Burlington Resources, Inc..... 127,404
667 Kerr-McGee Corp................ 44,230
4,407 Occidental Petroleum Corp...... 130,833
1,373* Oryx Energy Co................. 37,071
932 Pennzoil Co.................... 62,095
3,884 Phillips Petroleum Co.......... 188,131
1,404 Sun Co., Inc................... 56,774
3,360 Unocal Corp.................... 133,770
4,611 USX-Marathon Group............. 157,927
------------
2,101,901
------------
OIL - INTEGRATED INTERNATIONAL - 3.24%
9,459 Chevron Corp................... 758,493
36,528 Exxon Corp..................... 2,228,208
11,600 Mobil Corp..................... 834,475
31,592 Royal Dutch Petroleum Co. -
ADR........................... 1,664,504
7,874 Texaco Inc..................... 444,881
------------
5,930,561
------------
OIL - SERVICES - 0.63%
2,760 Baker Hughes Inc............... 115,575
2,477 Dresser Industries, Inc........ 92,578
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
OIL - SERVICES - Continued
3,714 Halliburton Co................. $ 200,324
681 McDermott International, Inc... 21,452
1,129* Rowan Companies, Inc........... 38,386
7,402 Schlumberger Ltd............... 609,277
1,058* Western Atlas Inc.............. 73,597
------------
1,151,189
------------
OIL/GAS PRODUCERS - 0.11%
800 Anadarko Petroleum Corp........ 52,000
1,200 Apache Corp.................... 44,100
300 Helmerich & Payne, Inc......... 22,819
3,611 Union Pacific Resources Group
Inc. ......................... 89,823
------------
208,742
------------
PAPER/FOREST PRODUCTS - 0.79%
1,663 Avery Dennison Corp............ 69,638
1,066 Boise Cascade Corp............. 35,911
1,507 Champion International Corp.... 80,719
2,938 Fort James Corp................ 114,949
1,333 Georgia-Pacific Corp........... 113,805
4,762 International Paper Co......... 225,897
7,534 Kimberly-Clark Corp............ 392,239
943 Louisiana Pacific Corp......... 19,037
834 Mead Corp...................... 53,845
315 Potlatch Corp.................. 15,317
1,972* Stone Container Corp........... 24,650
1,044 Union Camp Corp................ 62,705
1,221 Westvaco Corp.................. 39,835
2,844 Weyerhaeuser Co................ 150,199
1,578 Willamette Industries, Inc..... 55,427
------------
1,454,173
------------
PHOTOGRAPHY - 0.17%
4,634 Eastman Kodak Co............... 280,936
746 Polaroid Corp.................. 31,705
------------
312,641
------------
POLLUTION CONTROL - 0.18%
2,459 Browning-Ferris Industries
Inc. ......................... 87,756
5,700 Laidlaw Inc.................... 74,100
141 Safety-Kleen Corp.............. 3,912
6,731 Waste Management, Inc.......... 165,751
------------
331,519
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
PUBLISHING - NEWS - 0.34%
1,327 Dow Jones & Co., Inc........... $ 67,096
4,038 Gannett Co., Inc............... 234,456
1,296 Knight-Ridder, Inc............. 64,962
1,329 New York Times Co. Class A... 78,909
1,267 Times Mirror Co................ 75,228
1,801 Tribune Co..................... 101,531
------------
622,182
------------
PUBLISHING/PRINTING - 0.24%
1,519 Deluxe Corp.................... 53,640
2,686 Dun & Bradstreet Corp.......... 75,208
1,071 Harcourt General, Inc.......... 58,637
426 John H. Harland Co............. 8,812
1,578 McGraw-Hill, Inc............... 107,994
1,796 Moore Corp. Ltd................ 27,950
2,896 RR Donnelley & Sons Co......... 102,084
------------
434,325
------------
RAILROAD - 0.42%
2,133 Burlington Northern Santa Fe... 195,170
3,176 CSX Corp...................... 166,145
5,805 Norfolk Southern Corp.......... 184,672
3,746 Union Pacific Corp............. 224,760
------------
770,747
------------
RESTAURANTS - 0.35%
2,957 Darden Restaurants, Inc........ 35,114
10,061 McDonald's Corp................ 487,959
2,276* Tricon Global Restaurants, Inc. 76,957
2,200 Wendy's International, Inc..... 46,200
------------
646,230
------------
SAVINGS & LOAN - 0.24%
925 Golden West Financial Corp..... 82,903
1,385 H.F. Ahmanson & Co............. 82,408
3,864 Washington Mutual, Inc......... 267,099
------------
432,410
------------
SECURITIES RELATED - 0.53%
3,600 Charles Schwab Corp............ 138,825
5,030 Merrill Lynch & Co., Inc....... 353,043
8,912 Morgan Stanley, Dean Witter,
Discover and Co............... 484,033
------------
975,901
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 64
================================================================================
62 ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
SEMICONDUCTOR EQUIPMENT - 0.13%
5,666* Applied Materials, Inc......... $ 186,978
1,400* KLA-Tencor Corp................ 54,250
------------
241,228
------------
SEMICONDUCTORS - 1.68%
1,857* Advanced Micro Devices, Inc.... 40,506
24,202 Intel Corp..................... 1,878,680
2,010* LSI Logic Corp................. 46,733
3,144* Micron Technology, Inc......... 78,207
8,890 Motorola, Inc.................. 558,959
2,037* National Semiconductor Corp.... 67,476
2,817 Rockwell International Corp.... 137,329
5,628 Texas Instruments Inc.......... 277,179
------------
3,085,069
------------
TELECOMMUNICATIONS - 1.24%
7,349* Airtouch Communications, Inc... 288,448
2,784 ALLTEL Corp.................... 110,664
1,224* Andrew Corp.................... 32,436
1,847* DSC Communications Corp........ 41,673
2,278 Frontier Corp.................. 55,811
1,100 Harris Corp.................... 52,181
9,504 Lucent Technologies, Inc....... 761,508
3,817 Northern Telecom Ltd........... 342,814
1,381 Scientific-Atlanta, Inc........ 27,620
2,504* Tellabs, Inc................... 130,208
13,268* WorldCom, Inc.................. 424,576
------------
2,267,939
------------
TEXTILE - PRODUCTS - 0.07%
383 Russell Corp................... 11,705
300 Springs Industries, Inc.
Class A ...................... 15,131
2,000 V F Corp....................... 92,375
------------
119,211
------------
TOBACCO - 0.89%
35,829 Philip Morris Cos Inc.......... 1,558,562
2,027 UST Inc........................ 62,584
------------
1,621,146
------------
TRUCKERS - 0.02%
600 Caliber System, Inc............ 32,063
------------
UTILITIES - COMMUNICATION - 3.43%
23,254 AT & T Corp.................... 1,299,317
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
UTILITIES - COMMUNICATION - Continued
8,359 Ameritech Corp................. $ 644,165
11,495 Bell Atlantic Corp............. 1,025,929
14,627 BellSouth Corp................. 800,828
14,787 GTE Corp....................... 747,667
9,757 MCI Communications Corp........ 428,698
13,457 SBC Communications, Inc........ 979,837
6,220 Sprint Corp.................... 364,259
------------
6,290,700
------------
UTILITIES - ELECTRIC - 1.54%
2,949 American Electric Power, Inc... 146,160
2,698 Baltimore Gas and Electric Co.. 82,795
2,406 Carolina Power & Light Co...... 89,924
2,892 Central & South West Corp...... 72,300
2,718 Cinergy Corp................... 96,829
3,299 Consolidated Edison Co. of
New York, Inc................. 124,537
2,808 Dominion Resources, Inc........ 109,161
2,593 DTE Energy Co.................. 85,083
5,404 Duke Energy Corp............... 281,008
5,817 Edison International........... 155,968
2,627 Entergy Corp................... 68,302
2,826* FirstEnergy Corp............... 76,302
2,670 FPL Group, Inc................. 149,353
1,554 GPU Inc........................ 61,383
5,489 Houston Industries, Inc........ 130,020
1,200* Niagara Mohawk Power Corp...... 11,475
1,234 Northern States Power Co....... 67,715
5,335 P G & E Corp................... 150,714
1,700 P P & L Resources Inc.......... 39,950
5,445 PacifiCorp..................... 126,937
3,377 Peco Energy Co................. 82,103
3,681 Public Service Enterprise
Group......................... 107,439
10,808 Southern Co.................... 259,392
3,594 Texas Utilities Co............. 143,760
1,600 Unicom Corp.................... 46,600
1,525 Union Electric Co.............. 60,714
------------
2,825,924
------------
UTILITIES - GAS, DISTRIBUTION - 0.02%
890 NICOR Inc...................... 35,823
------------
UTILITIES - GAS, PIPELINE - 0.28%
787 Columbia Gas System, Inc....... 57,254
1,495 Consolidated Natural Gas Co.... 90,261
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ----------------------------------------------------------
<S> <C> <C>
UTILITIES - GAS, PIPELINE - Continued
4,147 Enron Corp..................... $ 160,696
200 ONEOK Inc...................... 7,475
1,520 Pacific Enterprises............ 53,770
625 Peoples Energy Corp............ 22,890
2,113 Williams Companies, Inc........ 112,913
------------
505,259
------------
TOTAL COMMON STOCKS
(Cost $75,467,445)............. 109,149,623
------------
PAR
VALUE
- -----
CORPORATE BONDS - 18.76%
AEROSPACE/DEFENSE - 1.11%
$2,000,000 Goodrich (B.F.),
7.10% due 11/15/27............ 2,026,820
------------
AUTO - CARS - 1.15%
2,000,000 Ford Motor Co.,
7.25 due 10/1/08.............. 2,097,780
------------
BANKS - OTHER - 2.78%
1,000,000 BankAmerica Corp.,
6.63% due 5/30/01............. 1,006,800
3,000,000 Malayan Banking Berhad,
7.13% due 9/15/05............. 2,635,020
1,500,000 Santander Finance Issuance,
6.38% due 2/15/11............. 1,450,290
------------
5,092,110
------------
BANKS - REGIONAL - 1.18%
2,000,000 NationsBank Corp.,
7.75% due 8/15/15............. 2,163,720
------------
FINANCE COMPANIES - 4.68%
3,000,000 AT&T Capital Corp.,
6.80% due 2/1/01.............. 3,045,900
1,000,000 Ford Motor Credit Co.,
6.25% due 11/8/00............. 998,150
1,500,000 GE Capital Mortgage Services
Inc., 6.46% due 2/25/01....... 1,502,168
3,000,000 International Lease Finance
Corp., 6.45% due 9/11/00...... 3,024,510
------------
8,570,728
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 65
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS CONTINUED 63
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------
<S> <C> <C>
HOSPITAL MANAGEMENT - 0.83%
$1,650,000 Columbia/HCA Healthcare Corp.,
7.19% due 11/15/15............
$ 1,525,441
------------
MERCHANDISE - SPECIALTY - 1.38%
2,500,000 Tandy Corp.,
6.95% due 9/1/07..............
2,524,725
------------
MERCHANDISING - MASS - 0.56%
1,000,000 Sears Roebuck and Co.,
7.35% due 3/23/00.............
1,023,620
------------
OIL - INTEGRATED DOMESTIC - 1.13%
2,000,000 Union Oil California,
7.20% due 5/15/05............. 2,077,140
------------
PUBLISHING - NEWS - 1.71%
3,000,000 News America Holdings,
9.13% due 10/15/99............ 3,138,150
------------
SECURITIES RELATED - 1.15%
Bear Stearns Co. Inc.:
1,000,000 9.38% due 6/1/01.............. 1,090,270
1,000,000 6.75% due 5/1/01.............. 1,008,850
------------
2,099,120
------------
TELECOMMUNICATIONS - 1.10%
2,000,000 360 Communications Co.,
7.13% due 3/1/03.............. 2,023,580
------------
TOTAL CORPORATE BONDS
(Cost $34,352,922)............. 34,362,934
------------
UNITED STATES GOVERNMENT -
LONG TERM - 13.48%
GOVERNMENT SPONSORED - 3.57%
Federal Home Loan Mortgage
Corp (pools/REMICS):
190,246 7.50% due 9/1/25.............. 194,645
474,798 7.50% due 9/1/25.............. 485,775
356,205 7.50% due 9/1/25.............. 364,441
470,948 7.50% due 9/1/25.............. 481,836
Federal National Mortgage
Association:
2,000,000 7.00% due 5/10/01............. 1,996,240
3,000,000 6.90% due 10/9/01............. 3,012,180
------------
6,535,117
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------
<S> <C> <C>
UNITED STATES BONDS & NOTES - 9.91%
United States Treasury Bonds:
$1,500,000 8.13% due 8/15/19............. $ 1,855,080
2,000,000 7.25% due 5/15/16............. 2,249,680
1,000,000 7.25% due 8/15/22............. 1,140,310
United States Treasury Notes:
1,000,000 8.00% due 8/15/99............. 1,035,160
4,000,000 6.50% due 8/15/05............. 4,144,360
2,200,000 6.38% due 4/30/99............. 2,218,216
1,500,000 6.25% due 2/15/03............. 1,525,305
2,000,000 5.75% due 12/31/98............ 2,000,620
1,000,000 5.75% due 8/15/03............. 993,750
1,000,000 5.50% due 4/15/00............. 993,440
------------
18,155,921
------------
TOTAL UNITED STATES GOVERNMENT -
LONG TERM
(Cost $24,038,623)............. 24,691,038
------------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 7.48%
AEROSPACE/DEFENSE - 1.10%
2,015,000 Lockheed Martin Corp.,
5.72% due 12/15/97............ 2,010,509
------------
CONSUMER FINANCE - 1.96%
Commercial Credit Co.:
2,193,000 5.62% due 12/8/97............. 2,190,602
1,405,000 5.58% due 12/2/97............. 1,404,782
------------
3,595,384
------------
FINANCE COMPANIES - 1.62%
1,999,000 Ford Motor Credit Europe,
5.63% due 12/4/97............. 1,998,061
964,000 General Motors Acceptance Corp.,
5.57% due 12/1/97............. 964,000
------------
2,962,061
------------
SECURITIES RELATED - 1.09%
2,004,000 Merrill Lynch & Co., Inc.,
5.57% due 12/3/97............. 2,003,379
------------
UTILITIES - COMMUNICATION - 1.71%
3,125,000 GTE Corp.,
5.75% due 12/5/97............. 3,123,000
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------
<S> <C> <C>
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $13,694,333)............. $ 13,694,333
------------
UNITED STATES GOVERNMENT -
SHORT TERM - 0.17%
U.S. TREASURY BILLS - 0.17%
United States Treasury Bills,
$ 100,000 4.84% due 12/11/97............ 99,865
200,000 4.67% due 12/11/97............ 199,734
------------
299,599
------------
TOTAL UNITED STATES GOVERNMENT -
SHORT TERM
(Cost $299,599)................ 299,599
------------
TOTAL INVESTMENTS
(Cost $147,852,922) - 99.48%... 182,197,527
Other assets less liabilities,
net - 0.52%................... 954,929
------------
NET ASSETS (equivalent
to $13.65 per share on
13,419,860 shares
outstanding) - 100%........... $183,152,456
============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 66
================================================================================
64 ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
- ----------------------------------------------------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/97)
15(2) S&P 500 Index Futures
(December/$954.90)............ $ 102,200
============
(1)U.S.Treasury Bills with a market value
of approximately $300,000 were maintained
in a segregated account with a portion
placed as collateral for futures contracts.
(2)Per 250
- ----------------------------------------------------------
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
13,419,860 shares outstanding........... $ 134,199
Additional paid in capital................ 132,145,279
Undistributed net realized gain on
securities............................... 16,359,550
Undistributed net investment income....... 66,623
Unrealized appreciation of:
Investments........... $34,344,605
Futures .............. 102,200 34,446,805
----------- ------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................. $183,152,456
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 67
================================================================================
ASSET ALLOCATION FUND - FINANCIAL STATEMENTS (Unaudited) 65
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................ $ 916,391
Interest............................................................. 2,351,195
-----------
Total investment income............................................ 3,267,586
-----------
EXPENSES:
Advisory fees........................................................ 460,663
Custodian and accounting services.................................... 24,084
Reports to shareholders.............................................. 11,524
Audit fees and tax services.......................................... 1,758
Directors' fees and expenses......................................... 2,267
Miscellaneous........................................................ 4,249
-----------
Total expenses..................................................... 504,545
-----------
NET INVESTMENT INCOME................................................ 2,763,041
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on:
Investments.......................................... $ 5,652,492
Futures contracts.................................... 727,456 6,379,948
-----------
Net unrealized appreciation (depreciation) during
the period:
Investments.......................................... 8,623,902
Futures contracts.................................... (400) 8,623,502
----------- -----------
Net realized and unrealized gain during the period........................ 15,003,450
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................. $17,766,491
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ................................................. $ 2,763,041 $ 5,846,609
Net realized gain on securities ....................................... 6,379,948 10,528,549
Net unrealized appreciation of securities during the period ........... 8,623,502 9,840,402
------------- -------------
Increase in net assets resulting from operations .................... 17,766,491 26,215,560
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................................. (2,736,904) (5,861,358)
Net realized gain on securities ....................................... -- (19,664,171)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders .................................................... (2,736,904) (25,525,529)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ...................................... 1,645,388 3,274,322
Proceeds from capital stock issued for distributions reinvested ....... 2,736,904 25,525,529
------------- -------------
4,382,292 28,799,851
Cost of capital stock repurchased ..................................... (13,606,106) (42,167,070)
------------- -------------
Decrease in net assets resulting from capital stock transactions .... (9,223,814) (13,367,219)
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............................... 5,805,773 (12,677,188)
NET ASSETS:
Beginning of period ................................................... 177,346,683 190,023,871
------------- -------------
End of period (including undistributed net investment income
of $66,623 and $40,486) ............................................. $ 183,152,456 $ 177,346,683
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold .......................................... 121,795 264,558
Shares issued for distributions reinvested ............................ 204,908 2,146,236
Shares of capital stock repurchased ................................... (1,013,735) (3,446,167)
------------- -------------
Decrease in shares outstanding ...................................... (687,032) (1,035,373)
Shares outstanding:
Beginning of period ................................................. 14,106,892 15,142,265
------------- -------------
End of period ....................................................... 13,419,860 14,106,892
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 68
================================================================================
66 CAPITAL CONSERVATION FUND - STATEMENT OF NET ASSETS
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- -------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS - 83.89%
AIRLINES - 6.08%
$1,500,000 Delta Air Lines, Inc.,
9.75% due 5/15/21............. $ 1,891,905
2,000,000 Southwest Airlines Co.,
8.75% due 10/15/03............ 2,218,220
------------
4,110,125
------------
AUTO - CARS - 2.15%
1,500,000 Hertz Corp.,
6.00% due 1/15/03............. 1,458,150
------------
BANKS - OTHER - 5.23%
1,000,000 BankAmerica Corp.,
7.20% due 4/15/06............. 1,037,540
1,500,000 Santander Finance Issuance,
7.25% due 11/1/15............. 1,543,560
1,000,000 Toronto Dominion Bank Ont,
6.13% due 11/1/08............. 958,980
------------
3,540,080
------------
BANKS - REGIONAL - 6.28%
1,500,000 Bank of Boston Corp.,
8.25% due 12/15/26............ 1,606,440
1,500,000 Barnett Banks, Inc.,
8.06% due 12/1/26............. 1,587,990
1,000,000 SouthTrust Corp.,
7.63% due 5/1/04............. 1,051,110
------------
4,245,540
------------
BUILDING MATERIALS - 2.98%
2,000,000 CSR America , Inc.,
6.88% due 7/21/05............. 2,019,620
------------
FINANCE COMPANIES - 13.04%
2,000,000 Capital One Bank,
8.13% due 3/1/00.............. 2,069,700
1,000,000 C.I.T. Group Holdings, Inc.,
8.38% due 11/1/01............. 1,067,050
2,000,000 Finova Capital Corp.,
9.13% due 2/27/02............. 2,189,520
500,000 Ford Motor Credit Co.,
6.38% due 11/5/08............. 490,205
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- -------------------------------------------------------------
<S> <C> <C>
FINANCE COMPANIES - Continued
$3,000,000 GE Capital Mortgage Services
Inc.,
6.46% due 2/25/01............ $ 3,004,336
------------
8,820,811
------------
HEALTHCARE - 2.08%
1,500,000 Columbia Healthcare Corp.,
7.50% due 12/15/23............ 1,404,345
------------
MERCHANDISE - DRUG - 0.71%
500,000 IMCERA Group Inc.,
6.00% due 10/15/03............ 481,680
------------
MERCHANDISING - DEPARTMENT - 3.39%
2,000,000 Associated Dry Goods Corp.,
8.85% due 3/1/06.............. 2,295,040
------------
MERCHANDISING - MASS - 1.46%
1,000,000 Sears Roebuck and Co.,
6.25% due 1/15/04............. 987,030
------------
METALS - STEEL - 2.78%
2,000,000 Pohang Iron & Steel Limited,
7.50% due 8/1/02.............. 1,880,360
------------
OIL/GAS PRODUCERS - 3.21%
2,000,000 Gulf Canada Res,
8.35% due 8/1/06.............. 2,171,640
------------
PAPER/FOREST PRODUCTS - 3.61%
2,000,000 Georgia-Pacific Corp.,
9.50% due 12/1/11............. 2,440,160
------------
PUBLISHING - NEWS - 3.17%
2,000,000 News America Holdings,
8.25% due 8/10/18............. 2,143,260
------------
SECURITIES RELATED - 5.18%
Lehman Brothers Holdings Inc.:
1,500,000 7.13% due 9/15/03............. 1,523,850
2,000,000 6.13% due 2/1/01.............. 1,978,040
------------
3,501,890
------------
TELECOMMUNICATIONS - 6.11%
2,000,000 Airtouch Communications, Inc.,
7.50% due 7/15/06............. 2,108,720
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- -------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS - Continued
$2,000,000 360 Communications Co.,
7.13% due 3/1/03.............. $ 2,023,580
------------
4,132,300
------------
UTILITIES - COMMUNICATION - 5.79%
2,500,000 Century Telephone Enterprises,
Inc.,
7.20% due 12/1/25............. 2,488,600
1,500,000 GTE South, Inc.,
6.00% due 2/15/08............. 1,427,700
------------
3,916,300
------------
UTILITIES - ELECTRIC - 4.54%
1,000,000 Georgia Power Co.,
6.13% due 9/1/99............. 997,920
2,000,000 Tenaga Nasional Berhad,
7.88% due 6/15/04............. 2,073,320
------------
3,071,240
------------
UTILITIES - GAS, PIPELINE - 6.10%
2,000,000 Columbia Gas System, Inc.,
7.62% due 11/28/25............ 2,030,660
2,000,000 Enron Corp.,
7.63% due 9/10/04............. 2,099,040
------------
4,129,700
------------
TOTAL CORPORATE BONDS
(Cost $56,160,369)............. 56,749,271
------------
UNITED STATES GOVERNMENT
LONG TERM - 12.45%
FEDERAL AGENCIES - 0.47%
Government National Mortgage
Association:
76,780 9.50% due 5/15/18............. 83,387
4,284 9.50% due 6/15/18............. 4,653
2,073 9.50% due 6/15/18............. 2,252
169,021 9.50% due 7/15/18............. 183,565
27,413 9.50% due 8/15/18............. 29,772
14,069 9.50% due 10/15/18............ 15,280
------------
318,909
------------
GOVERNMENT SPONSORED - 11.20%
Federal Home Loan Mortgage Corp.,
(Pools/REMICS):
969,362 6.50% due 6/1/12.............. 966,629
1,000,000 5.75% due 12/15/16............ 991,560
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 69
================================================================================
CAPITAL CONSERVATION FUND - STATEMENT OF NET ASSETS CONTINUED 67
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------------
<S> <C> <C>
GOVERNMENT SPONSORED - Continued
$2,000,000 Federal National Mortgage
Association,
7.23% due 3/30/06............. $ 2,011,560
Federal National Mortgage
Association (Pools/REMICS):
946,286 7.50% due 7/1/26.............. 966,102
898,706 7.00% due 5/1/11.............. 909,751
826,814 7.00% due 5/1/11.............. 836,976
881,430 7.00% due 6/1/11.............. 892,262
------------
7,574,840
------------
UNITED STATES NOTES - 0.78%
500,000 United States Treasury Notes,
6.88% due 5/15/06............. 531,640
------------
TOTAL UNITED STATES GOVERNMENT -
LONG TERM (Cost $8,255,022).... 8,425,389
------------
FOREIGN GOVERNMENT BONDS - 0.77%
CANADA - 0.77%
500,000 New Brunswick Province,
7.13% due 10/1/02
(Cost $499,097)............... 518,520
------------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 1.07%
MACHINERY - INDUSTRIAL/SPECIALTY - 1.07%
725,000 Cooper Industries, Inc.,
5.85% due 12/1/97
(Cost $725,000)............... 725,000
------------
TOTAL INVESTMENTS
(Cost $65,639,488) - 98.18%.... 66,418,180
Other assets and liabilities,
net - 1.82%................... 1,230,987
------------
NET ASSETS (equivalent
to $9.61 per share on
7,042,218 shares
outstanding) - 100%........... $ 67,649,167
============
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION
CONTRACTS (DEPRECIATION)
- -------------------------------------------------------------------
<S> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/97)
4(2) U.S. Treasury 10 Year Notes
(March/$111.38)............... $ (500)
10(2) U.S. Treasury 30 Year Notes
(March/$119.03)............... 2,188
-------------
$ 1,688
=============
(1) U.S.Treasury Notes with a market value
of approximately $100,000 were maintained
in a segregated account with a portion placed
as collateral for futures contracts.
(2) Per 1,000
- -------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
7,042,218 shares outstanding............ $ 70,422
Additional paid in capital................ 67,331,414
Accumulated net realized loss on securities (604,824)
Undistributed net investment income....... 71,775
Unrealized appreciation of:
Investments........... $ 778,692
Futures .............. 1,688 780,380
------------ ------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................. $ 67,649,167
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 70
================================================================================
68 CAPITAL CONSERVATION FUND - FINANCIAL STATEMENTS (Unaudited)
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest............................................................. $ 2,301,035
-----------
EXPENSES:
Advisory fees........................................................ 169,568
Custodian and accounting services.................................... 8,762
Reports to shareholders.............................................. 4,244
Audit fees and tax services.......................................... 694
Directors' fees and expenses......................................... 856
Miscellaneous........................................................ 2,013
-----------
Total expenses..................................................... 186,137
-----------
NET INVESTMENT INCOME................................................ 2,114,898
-----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on:
Investments.......................................... $ 103,904
Futures contracts.................................... 67,717 171,621
-----------
Net unrealized appreciation during the period:
Investments.......................................... 1,881,295
Futures contracts.................................... 1,688 1,882,983
----------- -----------
Net realized and unrealized gain on securities during the period............... 2,054,604
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................. $ 4,169,502
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ......................................... $ 2,114,898 $ 4,570,257
Net realized gain (loss) on securities ........................ 171,621 (127,757
Net unrealized appreciation of securities during the period ... 1,882,983 760,448
------------ ------------
Increase in net assets resulting from operations ........... 4,169,502 5,202,948
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ......................................... (2,067,112) (4,560,074)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold .............................. 3,833,240 5,054,950
Proceeds from capital stock issued for distributions reinvested 2,067,112 4,560,074
------------ ------------
5,900,352 9,615,024
Cost of capital stock repurchased ............................. (7,101,031) (13,722,282)
------------ ------------
Decrease in net assets resulting from
capital stock transactions ................................. (1,200,679) (4,107,258)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ....................... 901,711 (3,464,384)
NET ASSETS:
Beginning of period ........................................... 66,747,456 70,211,840
------------ ------------
End of period (including undistributed net investment income
of $71,775 and $23,989) ..................................... $ 67,649,167 $ 66,747,456
============ ============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold .................................. 398,434 540,826
Shares issued for distributions reinvested .................... 215,711 488,804
Shares of capital stock repurchased ........................... (739,984) (1,466,062)
------------ ------------
Decrease in shares outstanding .............................. (125,839) (436,432)
Shares outstanding:
Beginning of period ......................................... 7,168,057 7,604,489
------------ ------------
End of period ............................................... 7,042,218 7,168,057
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 71
===============================================================================
GOVERNMENT SECURITIES FUND - STATEMENT OF NET ASSETS 69
November 30, 1997 (Unaudited)
===============================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
----- ------
<S> <C> <C>
UNITED STATES GOVERNMENT-
LONG TERM - 95.79%
FEDERAL AGENCIES - 5.36%
Tennessee Valley Authority:
$2,500,000 6.75% due 11/01/25............ $ 2,595,075
2,000,000 6.38% due 6/15/05............. 2,020,940
-----------
4,616,015
-----------
GOVERNMENT SPONSORED - 60.86%
Federal Farm Credit Banks:
1,150,000 7.10% due 11/02/02............ 1,200,496
1,500,000 6.92% due 5/13/02............. 1,548,990
Federal Home Loan Banks:
1,155,000 7.26% due 9/6/01.............. 1,202,101
2,000,000 6.60% due 4/13/99............. 2,017,820
2,000,000 6.38% due 12/20/00............ 2,023,120
3,000,000 5.70% due 12/19/00............ 2,977,980
Federal Home Loan Mortgage Corp.:
3,000,000 7.13% due 7/21/99............. 3,055,770
1,500,000 7.09% due 6/1/05.............. 1,520,385
1,500,000 6.90% due 3/26/03............. 1,506,330
3,500,000 6.71% due 11/9/05............. 3,506,545
1,500,000 6.37% due 1/23/06............. 1,482,180
Federal Home Loan Mortgage Corp.
(Pools/REMICS):
117,915 7.50% due 9/1/25.............. 120,641
429,551 7.50% due 9/1/25.............. 439,483
192,005 7.50% due 9/1/25.............. 196,444
2,000,000 7.00% due 9/15/23............. 2,026,240
2,423,406 6.50% due 6/1/12.............. 2,416,572
175,000 5.50% due 2/25/19............. 170,187
Federal National Mortgage
Association:
1,000,000 9.05% due 4/10/00............. 1,064,060
2,000,000 7.27% due 8/24/05............. 2,042,820
2,300,000 6.90% due 10/9/01............. 2,309,338
2,000,000 6.85% due 9/12/05............. 2,014,380
2,000,000 6.62% due 6/25/07............. 2,055,940
3,000,000 6.45% due 6/10/03............. 2,967,660
2,000,000 6.41% due 3/8/06.............. 2,020,940
2,500,000 6.40% due 12/10/01............ 2,491,800
5,000,000 6.00% due 3/26/99............. 5,007,050
Student Loan Marketing
Association:
1,000,000 7.50% due 3/8/00.............. 1,032,500
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
----- ------
<S> <C> <C>
GOVERNMENT SPONSORED - Continued
$2,000,000 5.88% due 2/6/01.............. $ 1,976,560
-----------
52,394,332
-----------
UNITED STATES BONDS, NOTES
& STRIPS - 29.57%
United States Treasury Bonds:
1,800,000 9.00% due 11/15/18............ 2,404,404
4,000,000 8.75% due 8/15/20............. 5,271,880
3,500,000 8.50% due 2/15/20............. 4,496,415
United States Treasury Notes:
2,500,000 6.75% due 4/30/00............. 2,551,950
1,000,000 6.38% due 1/15/00............. 1,011,410
6,000,000 5.88% due 11/15/99............ 6,009,360
3,000,000 5.75% due 8/15/03............. 2,981,250
United States Treasury Strips:
1,500,000 0.00% due 11/15/09............ 726,225
-----------
25,452,894
-----------
TOTAL UNITED STATES
GOVERNMENT - LONG TERM
(Cost $80,187,039)............. 82,463,241
-----------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 2.63%
SECURITIES RELATED - 1.68%
1,445,000 Merrill Lynch & Co., Inc.,
5.73% due 12/2/97.............. 1,444,770
-----------
MACHINERY - INDUSTRIAL/
SPECIALTY - 0.95%
817,000 Cooper Industries, Inc.,
5.85% due 12/1/97.............. 817,000
-----------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $2,261,770).............. 2,261,770
-----------
TOTAL INVESTMENTS
(Cost $82,448,809) - 98.42%.... 84,725,011
Other assets and liabilities,
net - 1.58%................... 1,358,030
-----------
NET ASSETS (equivalent
to $9.99 per share on
8,614,145 shares
outstanding) - 100%........... $86,083,041
===========
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION
CONTRACTS (DEPRECIATION)
--------- --------------
<S> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/97)
15(2) U.S. Treasury 10 Year Notes
(March/$111.38)............... $ (1,875)
-----------
12(2) U.S. Treasury 30 Year Notes
(March/$119.03)............... 2,625
-----------
$ 750
===========
(1)U.S.Treasury Notes with a market value of
approximately $100,000 were maintained in a
segregated account with a portion placed as
collateral for futures contracts.
(2)Per 1,000
- ----------------------------------------------------------
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
8,614,145 shares outstanding............ $ 86,141
Additional paid in capital................ 85,503,227
Accumulated net realized loss on securities (1,866,267)
Undistributed net investment income....... 82,988
Unrealized appreciation of:
Investments........... $ 2,276,202
Futures .............. 750 2,276,952
----------- -----------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING...................... $86,083,041
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
<PAGE> 72
================================================================================
70 GOVERNMENT SECURITIES FUND - FINANCIAL STATEMENTS (Unaudited)
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest............................................................. $ 2,737,541
-----------
EXPENSES:
Advisory fees........................................................ 211,702
Custodian and accounting services.................................... 10,950
Reports to shareholders.............................................. 5,133
Audit fees and tax services.......................................... 877
Directors' fees and expenses......................................... 1,020
Miscellaneous........................................................ 2,389
-----------
Total expenses..................................................... 232,071
-----------
NET INVESTMENT INCOME................................................ 2,505,470
-----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on:
Investments.......................................... $ 146,336
Futures contracts.................................... 80,005 226,341
-----------
Net unrealized appreciation during the period:
Investments.......................................... 2,531,374
Futures contracts.................................... 750 2,532,124
----------- -----------
Net realized and unrealized gain on securities during the period.............. 2,758,465
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................ $ 5,263,935
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ......................................... $ 2,505,470 $ 5,088,757
Net realized gain on securities ............................... 226,341 4,132
Net unrealized appreciation of securities during the period ... 2,532,124 479,407
------------ ------------
Increase in net assets resulting from operations ........... 5,263,935 5,572,296
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ......................................... (2,454,140) (5,073,340)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold .............................. 4,576,812 11,299,725
Proceeds from capital stock issued for distributions reinvested 2,454,140 5,073,340
------------ ------------
7,030,952 16,373,065
Cost of capital stock repurchased ............................. (7,584,308) (11,468,468)
------------ ------------
Increase (decrease) in net assets resulting from
capital stock transactions ................................. (553,356) 4,904,597
------------ ------------
TOTAL INCREASE IN NET ASSETS .................................. 2,256,439 5,403,553
NET ASSETS:
Beginning of period ........................................... 83,826,602 78,423,049
------------ ------------
End of period (including undistributed net investment income
of $82,988 and $31,658) ..................................... $ 86,083,041 $ 83,826,602
============ ============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold .................................. 460,835 1,165,828
Shares issued for distributions reinvested .................... 248,127 523,483
Shares of capital stock repurchased ........................... (767,031) (1,180,771)
------------ ------------
Increase (decrease) in shares outstanding ................... (58,069) 508,540
Shares outstanding:
Beginning of period ......................................... 8,672,214 8,163,674
------------ ------------
End of period ............................................... 8,614,145 8,672,214
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 73
================================================================================
INTERNATIONAL GOVERNMENT BOND FUND - STATEMENT OF NET ASSETS 71
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------
<S> <C>
GOVERNMENT BONDS - 85.79%
AUSTRALIA - 1.34%
Commonwealth:
A$ 500,000 9.75% due 3/15/02............ $ 392,588
A$ 500,000 9.00% due 9/15/04............ 397,023
A$ 500,000 8.75% due 1/15/01............ 371,774
A$ 500,000 7.50% due 7/15/05............ 370,313
A$ 500,000 7.50% due 9/15/09............ 377,224
A$ 500,000 7.00% due 4/15/00............ 353,057
------------
2,261,979
------------
AUSTRIA - 2.67%
Republic of Austria:
As 2,500,000 8.50% due 2/21/01............ 222,209
DM 1,000,000 7.25% due 5/3/07............. 631,982
As 2,000,000 7.125% due 7/12/04........... 176,317
As 1,500,000 7.00% due 2/14/00............ 126,677
As 2,200,000 7.00% due 1/20/03............ 191,023
As 2,000,000 7.00% due 5/16/05............ 175,994
As 2,000,000 6.875% due 4/19/02........... 171,723
As 2,000,000 6.50% due 11/17/05........... 171,804
As 6,000,000 6.25% due 5/31/06............ 507,719
As 1,000,000 5.75% due 3/22/99............ 81,873
As 3,000,000 5.625% due 7/15/07........... 243,254
As 2,000,000 5.50% due 1/18/04............ 163,512
Y. 100MM 4.75% due 12/20/04........... 941,234
Y. 50MM 4.50% due 9/28/05............ 468,168
As 3,000,000 4.375% due 2/28/02........... 236,190
------------
4,509,679
------------
BELGIUM - 3.47%
Kingdom of Belgium:
Bf25,000,000 8.75% due 6/25/02............ 788,660
Bf10,000,000 8.00% due 12/24/12........... 332,559
Bf10,000,000 8.00% due 3/28/15............ 335,720
Bf10,000,000 7.75% due 12/22/00........... 297,737
Bf25,000,000 7.75% due 10/15/04........... 779,453
Bf20,000,000 7.50% due 7/29/08............ 628,784
Bf15,000,000 7.00% due 5/15/06............ 452,294
Bf20,000,000 6.50% due 3/31/05............ 584,589
Bf20,000,000 6.25% due 3/28/07............ 575,300
Bf20,000,000 5.00% due 3/28/01............ 552,983
Bf20,000,000 4.00% due 1/22/00............ 544,389
------------
5,872,468
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------
<S> <C>
CANADA - 4.67%
Government of Canada:
C$ 550,000 9.50% due 6/1/10............. $ 514,822
C$ 500,000 9.00% due 12/1/04............ 422,035
C$ 500,000 9.00% due 6/1/25............. 495,219
C$ 1,000,000 8.75% due 12/1/05............ 845,796
C$ 500,000 8.50% due 3/1/00............. 376,487
C$ 1,000,000 8.50% due 4/1/02............. 788,829
C$ 1,000,000 8.00% due 6/1/23............. 890,932
C$ 500,000 7.50% due 9/1/00............. 372,570
C$ 1,000,000 7.50% due 3/1/01............. 750,160
C$ 1,000,000 7.25% due 6/1/03............. 763,569
C$ 1,000,000 7.00% due 12/1/06............ 771,924
C$ 500,000 6.50% due 6/1/04............. 371,408
C$ 750,000 5.50% due 2/1/00............. 531,922
------------
7,895,673
------------
DENMARK - 2.88%
Kingdom of Denmark:
DK 2,500,000 9.00% due 11/15/00........... 412,036
DK 5,000,000 8.00% due 11/15/01........... 819,379
DK 2,500,000 8.00% due 5/15/03............ 417,287
DK 3,000,000 8.00% due 3/15/06............ 510,488
DK 5,500,000 7.00% due 12/15/04........... 881,980
DK 1,250,000 7.00% due 11/10/24........... 199,351
DK 5,000,000 6.00% due 11/15/02........... 769,174
Ff 5,000,000 5.50% due 10/26/99........... 863,394
------------
4,873,089
------------
FINLAND - 2.24%
Republic of Finland:
FI 1,000,000 11.00% due 1/15/99........... 201,069
FI 2,000,000 10.00% due 9/15/01........... 438,673
FI 1,000,000 9.50% due 3/15/04............ 231,161
L. 250,000 8.00% due 4/7/03............. 436,739
FI 3,000,000 7.25% due 4/18/06............ 622,356
Ff 5,000,000 7.00% due 6/15/04............ 924,801
Y. 100MM 6.00% due 1/29/02............ 940,255
------------
3,795,054
------------
FRANCE - 4.75%
Government of France:
Ff 4,600,000 9.50% due 1/25/01............ 887,070
Ff 3,500,000 8.50% due 11/25/02........... 683,838
Ff 1,500,000 8.50% due 12/26/12........... 324,987
Ff 8,000,000 7.75% due 4/12/00............ 1,452,476
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------
<S> <C>
FRANCE - Continued
Ff 3,000,000 7.25% due 4/25/06............ $ 573,747
Ff 7,000,000 6.75% due 10/25/03........... 1,286,450
Ff 2,000,000 6.50% due 10/25/06........... 365,423
Ff 8,500,000 6.00% due 10/25/25........... 1,435,553
Ff 2,000,000 5.50% due 4/25/04............ 345,332
Ff 4,000,000 5.50% due 4/25/07............ 681,788
------------
8,036,664
------------
GERMANY - 11.29%
Federal Republic of Germany:
DM 2,000,000 7.50% due 9/9/04............. 1,272,810
DM 3,100,000 7.125% due 12/20/02.......... 1,916,779
DM 2,000,000 7.00% due 1/13/00............ 1,193,536
DM 3,000,000 6.875% due 2/24/99........... 1,755,600
DM 1,000,000 6.75% due 7/15/04............ 613,212
DM 3,000,000 6.50% due 3/15/00............ 1,776,184
DM 3,000,000 6.50% due 7/15/03............ 1,810,377
DM 2,000,000 6.50% due 10/14/05........... 1,212,362
DM 1,000,000 6.25% due 4/26/06............ 597,959
DM 2,000,000 6.25% due 1/4/24............. 1,166,657
DM 1,000,000 6.00% due 11/12/03........... 590,439
DM 1,000,000 6.00% due 1/4/07............. 588,489
DM 4,000,000 6.00% due 6/20/16............ 2,307,003
DM 2,000,000 5.00% due 1/14/99............ 1,145,222
DM 2,000,000 5.00% due 5/21/01............ 1,144,088
------------
19,090,717
------------
IRELAND - 0.62%
Republic of Ireland:
Ilb 100,000 8.25% due 8/18/15............ 182,395
Ilb 100,000 8.00% due 8/18/06............ 169,924
Ilb 150,000 6.50% due 10/18/01........... 231,947
Ilb 150,000 6.25% due 4/1/99............. 225,712
Ilb 150,000 6.25% due 10/18/04........... 230,388
------------
1,040,366
------------
ITALY - 8.47%
Republic of Italy:
Lit 1,000MM 12.00% due 6/1/01............ 695,895
Lit 1,000MM 12.00% due 1/1/02............ 713,318
Lit 2,000MM 10.50% due 4/1/00............ 1,284,355
Lit 1,000MM 10.50% due 7/15/00........... 650,628
Lit 500MM 10.50% due 4/1/05............ 369,683
Lit 500MM 10.50% due 9/1/05............ 372,722
Lit 3,400MM 10.00% due 8/1/03............ 2,377,654
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 74
================================================================================
72 INTERNATIONAL GOVERNMENT BOND FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- -------------------------------------------------------------
<S> <C>
ITALY - Continued
Lit 500MM 9.50% due 1/1/05............. $ 351,073
Lit 500MM 9.50% due 2/1/06............. 357,875
Lit 2,000MM 9.00% due 11/1/23............ 1,535,808
Lit 2,000MM 8.50% due 1/1/99............. 1,194,980
Lit 1,000MM 8.50% due 4/1/99............. 602,179
Lit 500MM 8.50% due 8/1/99............. 302,826
Lit 1,000MM 8.50% due 4/1/04............. 663,363
Lit 1,500MM 8.50% due 8/1/04............. 997,163
Lit 1,000MM 7.75% due 9/15/01............ 625,391
Lit 1,500MM 6.75% due 2/1/07............. 922,110
Lit 500MM 6.25% due 3/1/02............. 298,369
------------
14,315,392
------------
JAPAN - 20.75%
Government of Japan:
Y. 50MM 6.70% due 6/20/00............ 451,792
Y. 250MM 6.60% due 6/20/01............ 2,346,719
Y. 320MM 6.40% due 3/20/00............ 2,840,321
Y. 105MM 6.00% due 12/20/01........... 983,977
Y. 365MM 5.50% due 3/20/02............ 3,387,600
Y. 120MM 5.00% due 12/20/02........... 1,111,005
Y. 100MM 5.00% due 9/21/09............ 1,012,263
Y. 100MM 5.00% due 3/20/15............ 1,048,462
Y. 250MM 4.90% due 9/20/99............ 2,114,594
Y. 130MM 4.80% due 6/21/99............ 1,087,467
Y. 170MM 4.60% due 6/22/98............ 1,363,197
Y. 127MM 4.50% due 6/20/03............ 1,158,598
Y. 75MM 4.50% due 12/20/04........... 700,901
Y. 150MM 4.40% due 9/22/03............ 1,367,013
Y. 200MM 4.20% due 9/21/15............ 1,920,000
Y. 150MM 4.10% due 6/21/04............ 1,357,023
Y. 100MM 3.90% due 6/21/04............ 894,809
Y. 100MM 3.80% due 9/20/16............ 916,121
Y. 250MM 3.50% due 3/21/16............ 2,200,588
Y. 100MM 3.30% due 6/20/06............ 869,579
Y. 200MM 3.20% due 3/20/06............ 1,725,994
Y. 250MM 3.00% due 9/20/05............ 2,130,460
Y. 150MM 2.90% due 12/20/05........... 1,267,933
Y. 100MM 2.70% due 3/20/07............ 829,344
------------
35,085,760
------------
NETHERLANDS - 4.34%
Government of the Netherlands:
NG 1,050,000 9.00% due 10/16/00........... 588,323
NG 1,000,000 8.75% due 9/15/01............ 569,114
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- -------------------------------------------------------------
<S> <C>
NETHERLANDS - Continued
NG 500,000 8.50% due 3/15/01............ $ 279,273
NG 500,000 8.25% due 2/15/02............ 282,544
NG 500,000 8.25% due 6/15/02............ 284,180
NG 500,000 8.25% due 2/15/07............ 301,917
NG 1,500,000 7.75% due 3/1/05............. 864,238
NG 500,000 7.50% due 6/15/99............ 263,423
NG 500,000 7.50% due 4/15/10............ 294,118
NG 750,000 7.50% due 1/15/23............ 451,744
NG 2,000,000 6.50% due 4/15/03............ 1,071,303
NG 1,500,000 6.00% due 1/15/06............ 785,739
NG 2,000,000 5.75% due 1/15/04............ 1,036,079
NG 500,000 5.75% due 2/15/07............ 257,384
------------
7,329,379
------------
PORTUGAL - 0.32%
Ff 3,000,000 Republic of Portugal,
6.625% due 5/13/08........... 545,034
------------
SPAIN - 4.81%
Government of Spain:
Pst 100MM 10.50% due 10/30/03.......... 839,481
Pst 100MM 10.30% due 6/15/02........... 803,937
Pst 100MM 10.15% due 1/31/06........... 863,597
Pst 50MM 10.10% due 2/28/01........... 385,504
Pst 50MM 10.00% due 2/28/05........... 422,255
Pst 50MM 8.40% due 4/30/01............ 370,414
Pst 70MM 8.20% due 2/28/09............ 558,531
Pst 80MM 8.00% due 5/30/04............ 609,885
Pst 50MM 7.90% due 2/28/02............ 368,453
Pst 150MM 7.40% due 7/30/99............ 1,048,270
Pst 150MM 6.75% due 4/15/00............ 1,048,773
Ff 2,000,000 6.50% due 6/20/01............ 356,157
Pst 67MM 5.25% due 1/31/03............ 448,031
------------
8,123,288
------------
SWEDEN - 2.38%
Kingdom of Sweden:
SK 4,000,000 13.00% due 6/15/01........... 633,530
SK 3,000,000 10.25% due 5/5/00............ 428,058
SK 6,000,000 10.25% due 5/5/03............ 927,170
SK 3,000,000 9.00% due 4/20/09............ 471,709
SK 3,000,000 8.00% due 8/15/07............ 437,592
C$ 500,000 6.75% due 12/31/01........... 365,381
SK 6,000,000 6.00% due 2/9/05............. 768,480
------------
4,031,920
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- --------------------------------------------------------------
<S> <C>
SWITZERLAND - 0.66%
Government of Switzerland:
Chf 500,000 4.50% due 7/8/02............... $ 376,981
Chf 500,000 4.50% due 4/8/06............... 378,910
Chf 500,000 4.00% due 3/10/99.............. 359,974
------------
1,115,865
------------
UNITED KINGDOM - 8.78%
Government of the United Kingdom:
L. 500,000 9.75% due 8/27/02............ 939,715
L. 400,000 9.00% due 10/13/08........... 808,984
L. 250,000 9.00% due 7/12/11............ 516,038
L. 400,000 9.00% due 8/6/12............. 832,417
L. 750,000 8.75% due 8/25/17............ 1,586,511
L. 500,000 8.50% due 12/7/05............ 943,937
L. 500,000 8.00% due 12/7/00............ 866,617
L. 550,000 8.00% due 6/10/03............ 981,146
L. 500,000 8.00% due 9/25/09............ 950,007
L. 500,000 8.00% due 12/7/15............ 980,090
L. 750,000 8.00% due 6/7/21............. 1,507,344
L. 1,000,000 7.50% due 12/7/06............ 1,797,096
L. 500,000 7.00% due 11/6/01............ 847,881
L. 750,000 6.75% due 11/26/04........... 1,280,529
------------
14,838,312
------------
UNITED STATES - 1.35%
DM 4,000,000 Federal National Mortgage
Association, 5.00% due 2/16/01.. 2,279,921
------------
TOTAL GOVERNMENT BONDS
(Cost $151,158,539)............. 145,040,560
------------
SUPRANATIONAL - 7.00%
Y. 150MM Asian Development Bank:
3.125% due 6/29/05............. 1,282,566
Eurofima:
Ff 5,000,000 9.875% due 8/21/00............. 956,033
Ff 1,600,000 9.25% due 12/18/03............. 326,428
Ff 3,000,000 5.625% due 11/25/99............ 518,618
European Investment Bank:
Lit 1,100MM 10.50% due 2/7/02.............. 770,451
L. 250,000 9.00% due 5/14/02.............. 454,420
Y. 25MM 6.625% due 3/15/00............. 222,821
Ff 2,000,000 6.125% due 10/8/04............. 354,463
Y. 100MM 4.625% due 2/26/03............. 914,299
Y. 100MM 3.00% due 9/20/06.............. 850,147
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 75
================================================================================
INTERNATIONAL GOVERNMENT BOND FUND - STATEMENT OF NET ASSETS CONTINUED 73
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- -------------------------------------------------------------
<S> <C>
SUPRANATIONAL - Continued
Y. 55MM Inter America Development Bank:
6.75% due 2/20/01............ $ 511,215
International Bank for
Reconstruction & Development:
Lit 150MM 10.80% due 11/13/01.......... 105,224
Lit 200MM 9.45% due 8/11/03............ 136,753
L. 400,000 9.25% due 7/20/07............ 792,095
Y. 250MM 5.25% due 3/20/02............ 2,305,338
Y. 100MM 4.50% due 3/20/03............ 911,362
Y. 50MM 4.50% due 6/20/00............ 430,460
------------
TOTAL SUPRANATIONAL
(Cost $13,026,636)............ 11,842,693
------------
CORPORATE BONDS - 4.18%
FRANCE - 3.99%
Credit Local de France:
Lit 2,000MM 9.00% due 6/14/01............ 1,286,496
Ff 5,000,000 8.875% due 6/10/02........... 971,914
Ff 8,000,000 6.25% due 9/27/05............ 1,417,851
Ff 4,000,000 6.00% due 11/15/01........... 701,303
Ff10,000,000 Elf Aquitaine SA,
7.125% due 8/11/03........... 1,839,014
Ff 3,000,000 Toyota Motor Credit,
6.25% due 4/11/02............ 530,423
------------
6,747,001
------------
SWITZERLAND - 0.19%
Lit 500MM Union Bank of Switzerland AG,
9.25% due 8/23/00............ 317,283
TOTAL CORPORATE BONDS
(Cost $7,548,113)............. 7,064,284
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
- -------------------------------------------------------------
<S> <C>
TOTAL INVESTMENTS
(Cost $171,733,288) - 96.97%.. $163,947,537
Other assets and liabilities,
net - 3.03% ................. 5,116,991
------------
NET ASSETS (equivalent
to $11.27 per share on
15,000,818 shares
outstanding) - 100% ......... $169,064,528
------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
- -------------------------------------------------------------
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
15,000,818 shares outstanding........... $ 150,008
Additional paid in capital................ 176,265,723
Accumulated net realized loss on securities (864,310)
Undistributed net investment income....... 1,352,645
Unrealized appreciation (depreciation) of:
Investments........... $(7,785,751)
Foreign currency translation (53,787) (7,839,538)
----------- ------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................. $169,064,528
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 76
================================================================================
74 INTERNATIONAL GOVERNMENT BOND FUND - FINANCIAL STATEMENTS (Unaudited)
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding taxes of $92,651)............... $ 4,701,223
-----------
EXPENSES:
Advisory fees ....................................................... 438,487
Custodian and accounting services.................................... 22,517
Reports to shareholders.............................................. 11,163
Audit fees and tax services.......................................... 1,998
Directors' fees and expenses......................................... 2,387
Miscellaneous........................................................ 6,907
-----------
Total expenses..................................................... 483,459
-----------
NET INVESTMENT INCOME................................................ 4,217,764
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
AND FOREIGN CURRENCIES:
Net realized loss on:
Securities........................................... $ (815,331)
Foreign currency transactions........................ (185,586) (1,000,917)
-----------
Net unrealized appreciation (depreciation) during
the period:
Securities........................................... (1,300,590)
Foreign currency translation......................... 67,544 (1,233,046)
----------- ----------
Net realized and unrealized loss on securities and
foreign currencies during the period..................................... (2,233,963)
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $ 1,983,801
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................................... $ 4,217,764 $ 8,522,441
Net realized loss on securities and foreign currency
transactions (1,000,917) (145,962)
Net unrealized depreciation of securities and
translation of foreign currencies during the period ........... (1,233,046) (7,210,455)
------------- -------------
Increase in net assets resulting from operations ............. 1,983,801 1,166,024
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ........................................... (2,949,994) (8,295,746)
Net realized gain on securities ................................. -- (295,588)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders .............................................. (2,949,994) (8,591,334)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ................................ 15,477,185 72,164,939
Proceeds from capital stock issued for distributions reinvested . 2,949,994 8,591,334
------------- -------------
18,427,179 80,756,273
Cost of capital stock repurchased ............................... (26,105,255) (38,005,431)
------------- -------------
Increase (decrease) in net assets resulting from
capital stock transactions ................................... (7,678,076) 42,750,842
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ......................... (8,644,269) 35,325,532
NET ASSETS:
Beginning of period ............................................. 177,708,797 142,383,265
------------- -------------
End of period (including undistributed net investment income
of $1,352,645 and $84,875) .................................... $ 169,064,528 $ 177,708,797
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold .................................... 1,370,447 6,113,938
Shares issued for distributions reinvested ...................... 259,728 729,242
Shares of capital stock repurchased ............................. (2,308,920) (3,236,292)
------------- -------------
Increase (decrease) in shares outstanding ..................... (678,745) 3,606,888
Shares outstanding:
Beginning of period ........................................... 15,679,563 12,072,675
------------- -------------
End of period ................................................. 15,000,818 15,679,563
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 77
================================================================================
MONEY MARKET FUND - STATEMENT OF NET ASSETS 75
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 83.02%
AEROSPACE/DEFENSE - 0.80%
$1,200,000 Lockheed Martin Corp.,
5.68% due 12/15/97............ $ 1,197,349
------------
BANKS - REGIONAL - 0.97%
1,449,000 BANC ONE CORP,
5.50% due 12/11/97............ 1,446,786
------------
BEVERAGE - SOFT DRINKS - 1.34%
2,000,000 Coca Cola Co.,
5.51% due 12/26/97............ 1,992,347
------------
CHEMICAL - MAJOR - 8.14%
Dow Chemical Co.:
2,500,000 5.57% due 12/22/97............ 2,491,877
2,000,000 5.50% due 12/22/97............ 1,993,583
1,500,000 5.53% due 12/30/97............ 1,493,318
E.I. du Pont de Nemours and Co.:
1,700,000 5.51% due 1/27/98............ 1,685,169
2,500,000 5.50% due 12/29/97............ 2,489,306
2,000,000 5.46% due 12/18/97............ 1,994,843
------------
12,148,096
============
CONSUMER FINANCE - 16.17%
Associates Corp. of North America:
1,500,000 5.57% due 2/4/98............ 1,484,915
1,622,000 5.51% due 12/1/97............ 1,622,000
900,000 5.50% due 12/2/97............ 899,863
500,000 5.25% due 9/1/98........... 497,320
Beneficial Corp.:
458,000 5.63% due 1/28/98............ 453,846
1,300,000 5.63% due 3/2/98............. 1,281,499
3,000,000 5.58% due 1/26/98............ 2,973,960
2,000,000 5.57% due 2/2/98............. 1,980,505
Commercial Credit Co.:
610,000 5.70% due 3/1/98............. 609,854
1,900,000 5.63% due 2/19/98............ 1,876,229
2,000,000 5.57% due 2/6/98............. 1,979,267
2,000,000 5.50% due 1/6/98............. 1,989,000
Sears Roebuck Acceptance Corp.:
450,000 5.73% due 1/30/98............ 445,703
2,000,000 5.72% due 1/29/98............ 1,981,251
1,500,000 5.62% due 2/17/98............ 1,481,735
1,000,000 5.60% due 2/11/98............ 988,800
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------------
<S> <C> <C>
CONSUMER FINANCE - Continued
Sears Roebuck Acceptance Corp.,
$1,600,000 5.54% due 1/7/98............. $ 1,590,890
------------
24,136,637
ELECTRICAL EQUIPMENT - 1.53% ------------
2,300,000 General Electric Co.,
5.58% due 1/20/98............. 2,282,175
------------
ENTERTAINMENT - 5.23%
1,400,000 Mattel, Inc.,
5.71% due 12/17/97............ 1,396,447
Walt Disney Co.:
3,000,000 5.58% due 3/6/98............. 2,955,825
1,500,000 5.57% due 6/4/98............. 1,457,065
2,000,000 5.50% due 12/17/97............ 1,995,111
------------
7,804,448
FINANCE COMPANIES - 19.43% ------------
CIESCO L P:
556,000 5.67% due 1/28/98............ 550,921
2,000,000 5.51% due 12/11/97............ 1,996,939
2,000,000 5.50% due 12/8/97............. 1,997,861
1,500,000 5.49% due 12/4/97............. 1,499,314
CIT Group Holdings, Inc.:
2,500,000 5.63% due 3/4/98.............. 2,463,640
2,500,000 5.62% due 2/13/98............. 2,471,119
1,500,000 5.60% due 2/10/98............. 1,483,433
Ford Motor Credit Co.:
979,000 5.63% due 2/26/98............. 965,680
1,300,000 5.51% due 1/8/98.............. 1,292,439
General Electric Capital Corp.:
1,700,000 5.69% due 1/21/98............. 1,686,297
600,000 5.67% due 2/19/98............. 592,440
1,000,000 5.50% due 4/8/98.............. 998,145
General Motors Acceptance Corp.:
1,000,000 6.30% due 06/11/98............ 1,001,926
900,000 5.71% due 2/25/98............. 887,724
1,400,000 5.71% due 3/16/98............. 1,376,684
1,100,000 5.63% due 2/9/98.............. 1,087,958
1,500,000 5.62% due 2/24/98............. 1,480,096
900,000 5.55% due 1/14/98............. 893,895
IBM Credit Co.:
1,000,000 5.80% due 11/4/98............. 999,954
1,300,000 5.63% due 1/23/98............. 1,289,225
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------------
<S> <C> <C>
FINANCE COMPANIES - Continued
$2,000,000 International Lease Finance Corp.,
5.54% due 1/22/98............. $ 1,983,996
------------
28,999,686
------------
FOODS - 3.34%
Archer Daniels Midland Co.:
1,012,000 5.65% due 2/25/98............ 998,341
1,500,000 5.52% due 12/23/97............ 1,494,940
2,500,000 5.50% due 12/10/97............ 2,496,562
------------
4,989,843
------------
HOSPITAL SUPPLIES - 2.61%
Abbott Laboratories:
1,400,000 5.55% due 12/2/97............. 1,399,784
2,500,000 5.48% due 12/31/97............ 2,488,583
------------
3,888,367
------------
INFORMATION PROCESSING - 2.74%
International Business Machines
Corp.:
2,000,000 5.81% due 10/1/98............. 1,999,550
1,000,000 5.65% due 1/22/98............. 999,863
1,100,000 5.50% due 1/13/98............. 1,092,774
------------
4,092,187
------------
MACHINERY - INDUSTRIAL/SPECIALTY - 2.58%
1,857,000 Cooper Industries, Inc.,
5.85% due 12/1/97............. 1,857,000
2,000,000 Dover Corp.,
5.60% due 12/18/97............ 1,994,711
------------
3,851,711
------------
MERCHANDISE - SPECIALTY - 1.67%
2,500,000 Toys "R" Us, Inc.,
5.52% due 12/10/97............ 2,496,550
------------
OIL - INTEGRATED DOMESTIC - 1.66%
2,500,000 Atlantic Richfield Co.,
5.53% due 2/5/98.............. 2,474,654
------------
PUBLISHING/PRINTING - 2.68%
RR Donnelley & Sons Co.:
2,000,000 5.50% due 12/16/97............ 1,995,417
2,000,000 5.48% due 12/9/97............. 1,997,564
------------
3,992,981
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 78
================================================================================
MONEY MARKET FUND - STATEMENT OF NET ASSETS CONTINUED 76
November 30, 1997 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------------
<S> <C> <C>
SECURITIES RELATED - 4.48%
Merrill Lynch & Co., Inc.:
$2,000,000 5.71% due 2/27/98............ $ 1,972,084
1,000,000 5.63% due 2/18/98............ 987,645
1,200,000 5.58% due 1/5/98.............. 1,193,490
600,000 5.58% due 1/12/98............. 596,094
1,100,000 5.57% due 1/9/98............. 1,093,362
850,000 5.55% due 1/12/98............ 844,496
------------
6,687,171
------------
UTILITIES - COMMUNICATION - 4.32%
GTE Corp.:
900,000 5.71% due 12/9/97............. 898,858
3,000,000 5.67% due 12/11/97............ 2,995,275
2,559,000 5.62% due 12/5/97............. 2,557,402
------------
6,451,535
------------
UTILITIES - ELECTRIC - 3.33%
1,900,000 Pacific Gas & Electric Co.,
5.48% due 12/03/97............ 1,899,422
Southern California Edison Co.:
2,500,000 5.49% due 12/12/97............ 2,495,806
576,000 5.45% due 12/12/97............ 575,041
------------
4,970,269
------------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $123,902,792)............ 123,902,792
------------
FOREIGN SHORT TERM
COMMERCIAL PAPER - 3.64%
CANADA - 3.64%
British Columbia Province:
2,500,000 5.63% due 2/10/98............. 2,472,241
1,500,000 5.53% due 3/16/98............. 1,475,806
1,500,000 5.52% due 2/3/98.............. 1,485,280
------------
5,433,327
------------
TOTAL FOREIGN SHORT TERM
COMMERCIAL PAPER
(Cost $5,433,327 )............. 5,433,327
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT TERM OBLIGATIONS - 3.35%
SECURITIES RELATED - 3.35%
Bear Stearns Co. Inc.:
$2,000,000 Floating rate note due 4/6/98
5.72% at 11/30/97............ $ 2,000,000
3,000,000 Floating rate note due 5/27/98
5.6675% at 11/30/97........... 3,000,000
------------
TOTAL CORPORATE SHORT TERM
OBLIGATIONS (Cost $5,000,000).. 5,000,000
------------
UNITED STATES GOVERNMENT
SHORT TERM - 9.38%
Federal Farm Credit Banks:
1,000,000 5.75% due 9/11/98............. 999,518
1,000,000 5.51% due 1/2/98.............. 999,878
Federal Home Loan Banks:
1,000,000 5.88% due 2/5/98............ 1,000,000
1,000,000 5.70% due 10/23/98............ 999,482
1,000,000 5.67% due 3/10/98............ 999,896
1,000,000 5.46% due 12/12/97........... 999,971
Federal National Mortgage
Association:
1,000,000 5.68% due 10/23/98............ 998,884
1,000,000 5.63% due 2/12/98 ........... 1,000,000
1,000,000 5.62% due 2/23/98............. 999,702
1,000,000 5.60% due 1/16/98............. 999,855
1,000,000 5.42% due 12/16/97............ 999,911
1,000,000 5.40% due 12/5/97............. 999,989
1,000,000 5.20% due 4/30/98............. 997,994
Student Loan Marketing Association:
1,000,000 5.79% due 9/16/98............ 1,000,154
------------
13,995,234
------------
TOTAL UNITED STATES GOVERNMENT
SHORT TERM
(Cost $13,995,234)............. 13,995,234
------------
TOTAL INVESTMENTS
(Cost $148,331,353) - 99.39%... 148,331,353
Other assets and liabilities,
net - 0.61%................... 914,288
------------
NET ASSETS (equivalent
to $1.00 per share on
149,245,641 shares
outstanding) - 100%........... $149,245,641
============
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------------------------------------------------------------
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
149,245,641 shares outstanding.......... $ 1,492,456
Additional paid in capital................. 147,753,185
------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................. $149,245,641
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- ----------------------------------------------------------------
<PAGE> 79
===============================================================================
MONEY MARKET FUND - FINANCIAL STATEMENTS (Unaudited) 77
===============================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest .............................................. $3,881,341
----------
EXPENSES:
Advisory fees ......................................... 342,052
Custodian and accounting services ..................... 15,965
Reports to shareholders ............................... 8,832
Audit fees and tax services ........................... 1,864
Directors' fees and expenses .......................... 1,708
Miscellaneous ......................................... 3,715
----------
Total expenses ...................................... 374,136
----------
NET INVESTMENT INCOME ................................. 3,507,205
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...... $3,507,205
==========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income................................................. $ 3,507,205 $ 5,637,643
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................................ (3,507,205) (5,637,643)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ..................................... 153,910,886 294,478,892
Proceeds from capital stock issued for distributions reinvested ...... 3,507,205 5,637,643
------------ ------------
157,418,091 300,116,535
Cost of capital stock repurchased .................................... (136,297,095) (255,609,535)
------------ ------------
Increase in net assets resulting from capital stock transactions ... 21,120,996 44,507,000
------------ ------------
TOTAL INCREASE IN NET ASSETS ......................................... 21,120,996 44,507,000
NET ASSETS:
Beginning of period .................................................. 128,124,645 83,617,645
------------ ------------
End of period ........................................................ $149,245,641 $128,124,645
============ ============
CHANGE IN SHARES OUTSTANDING
Shares of capital stock sold ......................................... 153,910,886 294,478,892
Shares issued for distributions reinvested ........................... 3,507,205 5,637,643
Shares of capital stock repurchased .................................. (136,297,095) (255,609,535)
------------ ------------
Increase in shares outstanding ..................................... 21,120,996 44,507,000
Shares outstanding:
Beginning of period ................................................ 128,124,645 83,617,645
------------ ------------
End of period ...................................................... 149,245,641 128,124,645
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
<PAGE> 80
================================================================================
78 NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
NOTE 1 -- ORGANIZATION
The American General Series Portfolio Company (the "Series") consists of
thirteen separate investment portfolios (the "Funds"):
Stock Index Fund
MidCap Index Fund
Small Cap Index Fund
International Equities Fund
Growth Fund
Growth & Income Fund
Science & Technology Fund
Social Awareness Fund
Asset Allocation Fund (formerly Timed Opportunity Fund)
Capital Conservation Fund
Government Securities Fund
International Government Bond Fund
Money Market Fund
The Series is registered under the Investment Company Act of 1940 (the "1940
Act"), as amended, as an open-end management investment company. Each Fund is
diversified with the exception of International Government Bond Fund which is
non-diversified as defined by the 1940 Act.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in accordance with generally
accepted accounting principles ("GAAP"). GAAP requires accruals which
occasionally are based upon management estimates. The following is a summary of
significant accounting policies consistently followed by each Fund in the
preparation of its financial statements.
A. INVESTMENT VALUATION
Securities listed or traded on a national exchange are valued daily at their
last reported sale price. In the absence of any exchange sales on that day and
for unlisted issues, securities are valued at the last sale price on the NASDAQ
National Market System. In the absence of any National Market System sales on
that day, securities are valued at the last reported bid price. However, options
written for which other over-the-counter market quotations are readily available
are valued at the last reported asked price, in the absence of any National
Market System sales on that day. Futures contracts, options thereon, and options
on stock indexes are valued at the amount which would be received upon a current
disposition of such investments (i.e., their fair market value), in the absence
of any sales on that day. Short term debt securities for which market quotations
are readily available are valued at the last reported bid price. However, any
short term security with a remaining maturity of 60 days or less and all
investments of the Money Market Fund are valued by the amortized cost method
which approximates fair market value. Investments for which market quotations
are not readily available are valued at fair value as determined in good faith
by, or under authority delegated by, the Series' Board of Directors.
B. OPTIONS AND FUTURES
CALL AND PUT OPTIONS. When a Fund writes a call or a put option, an amount
equal to the premium received is recorded as a liability. The liability is
"marked to market" daily to reflect the current market value of the option
written. When a written option expires, the Fund realizes a gain in the amount
of the premium originally received. If the Fund enters into a closing purchase
transaction, the Fund realizes a gain or loss in the amount of the original
premium less the cost of the closing transaction. If a written call option is
exercised, the Fund realizes a gain or loss from the sale of the underlying
security, and the proceeds from such sale are increased by the premium
originally received. If a written put option is exercised, the amount of the
premium originally received reduces the cost of the security which the Fund
purchases upon exercise of the option.
Purchased options are recorded as investments. If a purchased option expires,
the Fund realizes a loss in the amount of the cost of the option. If the Fund
enters into a closing transaction, it realizes a gain (or loss), to the extent
that the proceeds from the sale are greater (or less) than the cost of the
option. If the Fund exercises a put option, it realizes a gain or loss from the
sale of the underlying security by adjusting the proceeds from such sale by the
amount of the premium originally paid. If the Fund exercises a call option, the
cost of the security purchased upon exercise is increased by the premium
originally paid.
FUTURES CONTRACTS. The initial margin deposit made upon entering into a
futures contract is held by the custodian, in a segregated account, in the name
of the broker (the Fund's agent in acquiring the futures position). During the
period the futures contract is open, changes in the value of the contract are
recognized as unrealized gains or losses by "marking to market" on a daily basis
to reflect the market value of the contract at the end of each day's trading.
Variation margin payments are received or made daily, as unrealized gains or
losses are incurred. When the contract is closed, the Fund realizes a gain or
loss in the amount of the cost of or proceeds from the closing transaction less
the Fund's basis in the contract.
C. REPURCHASE AGREEMENTS
The seller of a repurchase agreement collateralizes the agreement with
securities delivered to the Fund's custodian bank. The Adviser determines, on a
daily basis, that the seller maintains collateral of at least 100% of the
repurchase proceeds due to the Fund at maturity.
D. FOREIGN CURRENCY TRANSLATION
The accounting records of each Fund are maintained in U.S. dollars.
Transactions denominated in foreign currencies ("local currencies") are
translated into U.S. dollars at prevailing exchange rates on transaction date.
Net realized gains or losses on foreign currency transactions include
exchange rate gains and losses from disposition of foreign currencies, currency
gains and losses realized between trade and settlement dates of security
transactions, and currency gains and losses realized on settlement of other
assets and liabilities settled in local currencies.
In determining realized and unrealized gains or losses on foreign securities
for the period, the Funds do not isolate exchange rate fluctuations from local
security price fluctuations. Foreign currencies and other assets and liabilities
denominated in local currencies are marked-to-market daily to reflect
fluctuations in foreign exchange rates.
E. FEDERAL INCOME TAXES
Each Fund intends to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code and to distribute all of its taxable
net investment income and taxable net realized capital gains, in excess of any
available capital loss carryovers. Therefore no federal income tax provision is
required.
- --------------------------------------------------------------------------------
<PAGE> 81
================================================================================
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONTINUED 79
================================================================================
F. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME
Investment transactions are accounted for on the trade date. Realized gains
and losses are determined on the basis of identified cost. Dividend income is
recorded on the ex-dividend date, except for dividend income on certain foreign
securities which is recorded when the Fund becomes aware of the dividend.
Interest income on investments is accrued daily.
G. DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on the record date. The Funds
declare distributions from net investment income monthly, except for the Money
Market Fund, which declares daily. Capital gains distributions are declared
annually.
Investment income and capital gains and losses are recognized in accordance
with generally accepted accounting principles ("book"). Distributions from net
investment income and realized capital gains are based on earnings as determined
in accordance with federal tax regulations ("tax") which may differ from book
basis earnings. At the end of the year, offsetting adjustments to undistributed
net investment income and undistributed net realized gains (losses) are made to
eliminate permanent book/tax differences arising in the current year.
NOTE 3 -- ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
VALIC (the "Adviser") serves as investment adviser to the Series. VALIC is an
indirect wholly-owned subsidiary of American General Corporation, Houston,
Texas. On May 1, 1992, the Adviser entered into a sub-advisory agreement with
Bankers Trust Company ("Bankers Trust"), a wholly-owned subsidiary of Bankers
Trust New York Corporation, to serve as investment sub-adviser to Stock Index
Fund, MidCap Index Fund, and Small Cap Index Fund. On April 29, 1994, the
Adviser entered into sub-advisory agreements with T. Rowe Price Associates, Inc.
to serve as investment sub-adviser to Growth Fund and Science & Technology Fund,
and with Value Line, Inc., to serve as investment sub-adviser to Growth & Income
Fund. Sub-advisers are compensated for such services by the Adviser.
The Adviser receives from the Series a monthly fee based on each Fund's
average daily net asset value at the following annual rates: for Stock Index
Fund, MidCap Index Fund, Small Cap Index Fund and International Equities Fund
.35% on the first $500 million and .25% on the excess over $500 million; for
Social Awareness Fund, Asset Allocation Fund, Capital Conservation Fund,
Government Securities Fund, International Government Bond Fund, and Money Market
Fund, .50%; for Growth & Income Fund, .75%; for Growth Fund, .80%; for Science &
Technology Fund, .90%.
To the extent that any Fund's accrued expenses for a given month exceed, on
an annualized basis, 2% of the Fund's average daily net assets, the Adviser will
voluntarily reduce expenses of any such Fund by the amount of the excess. The
Adviser may withdraw this voluntary undertaking upon 30 days written notice to
the Series.
On October 31, 1996, the Series entered into an accounting services agreement
with VALIC which appointed VALIC as Accounting Services Agent. Under the
agreement VALIC will provide, or cause to be provided, certain accounting and
administrative services to the Series. During the period ended November 30,
1997, the Series paid VALIC $382,024 for such services provided directly by
VALIC.
VALIC provided to the Series, at cost, certain services associated with the
printing of reports to shareholders. During the six months ended November 30,
1997, the Series paid $4,943 for such services.
During the six months ended November 30, 1997, security transactions were
affected between the following Funds at the then current market price with no
brokerage commissions incurred:
<TABLE>
<CAPTION>
SELLER PURCHASER COST TO PURCHASER NET GAIN TO SELLER
------ --------- ----------------- ------------------
<S> <C> <C> <C>
MidCap Index Fund Stock Index Fund $3,822,050 $4,581,590
Stock Index Fund MidCap Index Fund 881,474 557,665
</TABLE>
At November 30, 1997, VALIC Separate Account A (a registered separate account
of VALIC) and VALIC owned over five percent of the outstanding shares of the
following Funds:
<TABLE>
<CAPTION>
VALIC SEPARATE
ACCOUNT A VALIC
-------------------------
<S> <C> <C>
Stock Index Fund........................................ 97.04%
MidCap Index Fund....................................... 99.99
Small Cap Index Fund.................................... 100.00
International Equities Fund............................. 99.85
Growth Fund............................................. 99.51
Growth & Income Fund.................................... 100.00
Science & Technology Fund............................... 100.00
Social Awareness Fund................................... 99.98
Asset Allocation Fund................................... 99.95
Capital Conservation Fund............................... 90.41 9.57
Government Securities Fund.............................. 99.99
International Government Bond Fund...................... 100.00
Money Market Fund....................................... 100.00
</TABLE>
Certain officers and directors of the Series are officers and directors of
VALIC or American General Corporation.
NOTE 4 -- INVESTMENT ACTIVITY
The information in the following table is presented on the basis of cost for
federal income tax purposes at November 30,1997.
<TABLE>
<CAPTION>
IDENTIFIED COST GROSS GROSS NET UNREALIZED
OF INVESTMENTS UNREALIZED UNREALIZED APPRECIATION
OWNED APPRECIATION DEPRECIATION (DEPRECIATION)
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Stock Index Fund .................. $1,503,221,509 $1,405,313,708 $28,601,037 $1,376,712,671
MidCap Index Fund ................. 480,166,736 249,514,625 29,021,528 220,493,097
Small Cap Index Fund .............. 180,763,529 57,119,260 12,864,302 44,254,958
International Equities
Fund .............................. 128,668,495 45,980,362 23,458,834 22,521,528
Growth Fund ....................... 705,961,757 240,586,524 21,034,556 219,551,968
Growth & Income Fund .............. 190,505,409 64,755,342 2,855,207 61,900,135
Science & Technology Fund ......... 855,044,905 126,230,736 51,072,853 75,157,883
Social Awareness Fund ............. 198,314,228 35,669,368 4,534,891 31,134,477
Asset Allocation Fund ............. 148,425,974 35,951,020 2,179,467 33,771,553
Capital Conservation Fund ......... 65,641,176 1,369,574 592,570 777,004
Government Securities Fund ........ 82,455,576 2,451,851 182,416 2,269,435
International Government
Bond Fund ...................... 171,733,288 5,315,800 13,101,551 (7,785,751)
Money Market Fund ................. 148,331,353 -- -- --
</TABLE>
The following net realized capital loss carryforwards at November 30, 1997,
may be utilized to offset future capital gains.
<TABLE>
<CAPTION>
Capital Loss Carryforward Expiration through
----------------------------------------------
<S> <C> <C>
Science & Technology Fund ......... $ 698,127 May 31, 2005
Capital Conservation Fund ......... 574,958 May 31, 2003
Government Securities Fund ........ 2,086,592 May 31, 2003
Money Market Fund ................. 3,017 May 31, 2005
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 82
================================================================================
80 NOTES TO FINANCIAL STATEMENTS (Unaudited) CONTINUED
================================================================================
During the six months, the cost of purchases and proceeds from sales of
securities, excluding short term securities were:
<TABLE>
<CAPTION> COST OF PROCEEDS FROM
SECURITIES SECURITIES SOLD
PURCHASED OR MATURED
-----------------------------
<S> <C> <C>
Stock Index Fund.................................... $184,934,947 $ 47,606,356
MidCap Index Fund................................... 89,507,101 87,486,230
Small Cap Index Fund................................ 76,991,450 62,360,214
International Equities Fund......................... 9,603,711 25,562,804
Growth Fund......................................... 224,070,949 122,452,087
Growth & Income Fund................................ 95,666,914 105,814,740
Science &Technology Fund............................ 694,321,075 511,848,244
Social Awareness Fund............................... 157,880,690 104,413,517
Asset Allocation Fund............................... 16,325,894 27,520,558
Capital Conservation Fund........................... 5,130,430 6,695,481
Government Securities Fund.......................... 6,460,744 8,269,037
International Government Bond Fund.................. 15,541,473 21,555,841
</TABLE>
NOTE 5-- PORTFOLIO SECURITIES LOANED
To realize additional income, a Fund may lend portfolio securities with a
value of up to 30% (331/3% in the case of Growth Fund and Science & Technology
Fund) of its total assets. Any such loans will be continuously secured by
collateral consisting of cash or U.S. Government securities, maintained in a
segregated account, at least equal to the market value of the securities loaned.
The risks in lending portfolio securities, as with other extensions of secured
credit, consist of possible delays in receiving additional collateral or in the
recovery of the securities or possible loss of rights in the collateral should
the borrower fail financially. Loans by a Fund will only be made to
broker-dealers deemed by the Custodian to be creditworthy and will not be made
unless, in the judgment of the Adviser, the consideration to be earned from such
loans would justify the risk. Each Fund receives income earned on the securities
loaned during the lending period and a portion of the earnings or rebate earned
on the collateral received.
Portfolio securities on loan at November 30, 1997 are summarized as follows:
<TABLE>
<CAPTION>
MARKET VALUE COLLATERAL VALUE
-----------------------------
<S> <C> <C>
Stock Index Fund.................................... $ 7,117,931 $ 7,327,700
MidCap Index Fund................................... 15,800,390 16,540,067
Small Cap Index Fund................................ 13,106,982 13,913,327
International Equities Fund......................... 8,441,314 8,733,665
Growth Fund......................................... 18,393,750 19,257,200
Growth & Income Fund................................ 4,687,439 4,816,789
Science & Technology Fund........................... 17,143,462 17,854,600
Social Awareness Fund............................... 880,818 904,256
Asset Allocation Fund............................... 219,650 226,744
Capital Conservation Fund........................... 1,024,416 1,045,710
------------ ------------
Total............................................ $ 86,816,152 $ 90,620,058
------------ ------------
</TABLE>
NOTE 6 -- INVESTMENT CONCENTRATION
A significant portion of Government Securities Fund's investments may be in
U.S. Government sponsored securities. No assurance can be given that the U.S.
Government will provide support to such U.S. Government sponsored agencies or
instrumentalities in the future since it is not required to do so by law. As a
result of the Fund's concentration in such investments, it may be subject to
risks associated with U.S. Government sponsored securities. At November 30,
1997, Government Securities Fund had 61% of its net assets invested in such
securities.
At November 30, 1997, International Government Bond Fund had 21% of its net
assets invested in securities issued by the Government of Japan and an
additional 6% in issues of companies located in Japan and/or denominated in
Japanese Yen. Future economic and political developments in a foreign country
could adversely affect the liquidity and value of foreign securities or the
currency exchange rates from which foreign currencies are translated.
NOTE 7 -- SUBSEQUENT EVENT
On December 30, 1997, annual distributions from undistributed net realized
gains on investments were declared payable on December 31, 1997, to shareholders
of record December 30, 1997, as follows:
<TABLE>
<CAPTION>
RATE
PER SHARE
---------
<S> <C>
Stock Index Fund....................................................... 0.1503
MidCap Index Fund...................................................... 1.3608
Small Cap Index Fund................................................... 1.4144
International Equities Fund............................................ 0.3274
Growth Fund............................................................ 0.3289
Growth & Income Fund................................................... 0.2135
Social Awareness Fund.................................................. 0.8098
Asset Allocation Fund.................................................. 0.7917
International Government Bond Fund..................................... 0.0092
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 83
================================================================================
FINANCIAL HIGHLIGHTS (Unaudited) 81
================================================================================
Per share data is for a share of capital stock outstanding throughout the
period. Total return includes reinvestment of dividends on the reinvestment
date. Total returns and ratios for periods of less than one year are not
annualized. The average commission rate paid on investment equity securities (on
a per share basis) is presented for the periods beginning after May 31, 1996.
STOCK INDEX FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------------------------
1997 1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period ................................. $ 26.09 $ 20.69 $ 16.81 $ 14.39 $ 14.36 $ 13.34
---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income .................. .19 0.39 0.39 0.37 0.35 0.34
Net realized and unrealized gain
on securities ......................... 3.29 5.57 4.26 2.45 0.12 1.20
---------- ---------- ---------- ---------- ---------- ----------
Total income from investment
operations ............................ 3.48 5.96 4.65 2.82 0.47 1.54
---------- ---------- ---------- ---------- ---------- ----------
Distributions:
Distributions from net investment
income ................................ (0.19) (0.39) (0.38) (0.37) (0.35) (0.34)
Distributions from net realized gain
on securities ......................... -- (0.17) (0.39) (0.03) (0.09) (0.18)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions .................... (0.19) (0.56) (0.77) (0.40) (0.44) (0.52)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at end of period ......... $ 29.38 $ 26.09 $ 20.69 $ 16.81 $ 14.39 $ 14.36
========== ========== ========== ========== ========== ==========
TOTAL RETURN ............................. 13.37% 29.24% 28.17% 19.98% 3.29% 11.74%
========== ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ............................. 0.16% 0.34% 0.35% 0.38% 0.39% 0.43%
Ratio of net investment income to
average net assets ..................... 0.70% 1.76% 2.05% 2.44% 2.44% 2.52%
Portfolio turnover rate .................. 2% 3% 3% 14% 3% 1%
Number of shares outstanding at
end of period (000's) .................. 98,158 93,687 85,117 75,451 75,494 66,224
Net assets at end of period (000's) ...... $2,884,332 $2,444,200 $1,760,786 $1,267,992 $1,086,459 $ 951,200
Average net assets during the
period (000's) ......................... $2,701,074 $2,019,826 $1,498,398 $1,140,085 $1,030,581 $ 836,510
Average commission rate paid ............. $ 0.0283 $ 0.0281 n/a n/a n/a n/a
</TABLE>
MIDCAP INDEX FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -------------------------------------------------------------
1997 1997 1996 1995 1994 1993
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period ................................. $ 20.83 $ 19.09 $ 15.68 $ 14.54 $ 14.38 $ 12.86
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income .................. 0.11 0.24 0.24 0.26 0.23 0.24
Net realized and unrealized gain
on securities ......................... 3.16 2.95 4.06 1.59 0.28 1.93
-------- -------- -------- -------- -------- --------
Total income from investment
operations ............................ 3.27 3.19 4.30 1.85 0.51 2.17
-------- -------- -------- -------- -------- --------
Distributions:
Distributions from net investment
income ................................ (0.12) (0.24) (0.24) (0.26) (0.23) (0.24)
Distributions from net realized gain
on securities ......................... -- (1.21) (0.65) (0.45) (0.12) (0.41)
-------- -------- -------- -------- -------- --------
Total distributions .................... (0.12) (1.45) (0.89) (0.71) (0.35) (0.65)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ......... $ 23.98 $ 20.83 $ 19.09 $ 15.68 $ 14.54 $ 14.38
======== ======== ======== ======== ======== ========
TOTAL RETURN ............................. 15.70% 17.48% 28.10% 13.26% 3.52% 17.21%
======== ======== ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ............................. 0.19% 0.40% 0.41% 0.44% 0.46% 0.47%
Ratio of net investment income to
average net assets ..................... 0.52% 1.24% 1.36% 1.73% 1.62% 1.79%
Portfolio turnover rate .................. 13% 19% 21% 23% 17% 5%
Number of shares outstanding at
end of period (000's) .................. 29,253 29,137 28,322 25,988 24,001 14,673
Net assets at end of period (000's) ...... $701,611 $607,061 $540,688 $407,557 $349,041 $210,931
Average net assets during the
period (000's) ......................... $671,419 $554,397 $477,372 $376,486 $285,247 $154,979
Average commission rate paid ............. $ 0.0213 $ 0.0277 n/a n/a n/a n/a
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 84
================================================================================
82 FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED
================================================================================
Per share data is for a share of capital stock outstanding throughout the
period. Total return includes reinvestment of dividends on the reinvestment
date. Total returns and ratios for periods of less than one year are not
annualized. The average commission rate paid on investment equity securities (on
a per share basis) is presented for the periods beginning after May 31, 1996.
SMALL CAP INDEX FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, ---------------------------------------------------------------------
1997 1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period ................................. $ 16.18 $ 16.25 $ 12.49 $ 11.52 $ 11.28 $ 9.93
---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income .................. 0.09 0.19 0.20 0.17 0.13 0.15
Net realized and unrealized gain
on securities ......................... 2.15 0.93 4.04 0.97 0.58 1.48
---------- ---------- ---------- ---------- ---------- ----------
Total income from investment
operations ............................ 2.24 1.12 4.24 1.14 0.71 1.63
---------- ---------- ---------- ---------- ---------- ----------
Distributions:
Distributions from net investment
income ................................ (0.10) (0.19) (0.20) (0.17) (0.13) (0.15)
Distributions from net realized gain
on securities ......................... -- (1.00) (0.28) -- (0.34) (0.13)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions .................... (0.10) (1.19) (0.48) (0.17) (0.47) (0.28)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at end of period ......... $ 18.32 $ 16.18 $ 16.25 $ 12.49 $ 11.52 $ 11.28
========== ========== ========== ========== ========== ==========
TOTAL RETURN ............................. 13.83% 7.51% 34.50% 9.98% 6.18% 16.64%
========== ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ............................. 0.20% 0.41% 0.41% 0.44% 0.47% 0.47%
Ratio of net investment income to
average net assets ..................... 0.55% 1.34% 1.36% 1.44% 1.10% 1.40%
Portfolio turnover rate .................. 30% 42% 31% 34% 16% 20%
Number of shares outstanding at
end of period (000's) .................. 12,310 11,893 11,129 10,136 9,381 3,687
Net assets at end of period (000's) ...... $ 225,455 $ 192,459 $ 180,785 $ 126,567 $ 108,050 $ 41,581
Average net assets during the
period (000's) ......................... $ 214,073 $ 178,368 $ 150,448 $ 120,298 $ 70,690 $ 22,142
Average commission rate paid ............. $ 0.0147 $ 0.0297 n/a n/a n/a n/a
</TABLE>
INTERNATIONAL EQUITIES FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, --------------------------------------------------------
1997 1997 1996 1995 1994 1993
-------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period .................................... $ 11.44 $ 11.15 $ 10.42 $ 10.14 $ 8.99 $ 8.03
-------- -------- -------- -------- -------- -------
Income (loss) from investment operations:
Net investment income ..................... 0.13 0.20 0.17 0.15 0.11 0.18
Net realized and unrealized gain
(loss) on securities and
foreign currencies ....................... (0.60) 0.63 0.97 0.34 1.17 0.93
-------- -------- -------- -------- -------- -------
Total income (loss) from investment
operations ............................... (0.47) 0.83 1.14 0.49 1.28 1.11
-------- -------- -------- -------- -------- -------
Distributions:
Distributions from net investment
income ................................... (0.14) (0.19) (0.17) (0.15) (0.11) (0.15)
Distributions from net realized gain
on securities ............................ -- (0.35) (0.24) (0.06) (0.02) --
-------- -------- -------- -------- -------- -------
Total distributions ....................... (0.14) (0.54) (0.41) (0.21) (0.13) (0.15)
-------- -------- -------- -------- -------- -------
Net asset value at end of period ............ $ 10.83 $ 11.44 $ 11.15 $ 10.42 $ 10.14 $ 8.99
======== ======== ======== ======== ======== =======
TOTAL RETURN ................................ (4.26)% 7.74% 11.14% 4.92% 14.31% 14.18%
======== ======== ======== ======== ======== =======
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ................................ 0.21% 0.42% 0.42% 0.45% 0.47% 0.53%
Ratio of net investment income to
average net assets ........................ 0.92% 1.75% 1.65% 1.47% 1.43% 2.33%
Portfolio turnover rate ..................... 6% 12% 20% 14% 7% 9%
Number of shares outstanding at
end of period (000's) ..................... 14,169 15,857 18,497 20,074 17,273 7,429
Net assets at end of period (000's) ......... $153,418 $181,437 $206,259 $209,091 $175,183 $66,809
Average net assets during the
period (000's) ............................ $173,556 $191,117 $204,792 $199,235 $117,264 $45,509
Average commission rate paid ................ $ 0.0381 $ 0.0236 n/a n/a n/a n/a
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 85
================================================================================
FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED 83
================================================================================
Per share data is for a share of capital stock outstanding throughout the
period. Total return includes reinvestment of dividends on the reinvestment
date. Total returns and ratios for periods of less than one year are not
annualized. The average commission rate paid on investment equity securities (on
a per share basis) is presented for the periods beginning after May 31, 1996.
GROWTH FUND
<TABLE>
<CAPTION>
FOR THE SIX PERIOD FROM
MONTHS ENDED FISCAL YEAR ENDED MAY 31, APRIL 29, 1994
NOVEMBER 30, ---------------------------------- TO
1997 1997 1996 1995 MAY 31, 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period .................................... $ 17.62 $ 16.49 $ 11.43 $ 9.87 $ 10.00(1)
-------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income .................... 0.01 0.02 0.11 0.04 0.01
Net realized and unrealized gain
(loss) on securities ................... 2.38 1.45 5.27 1.56 (0.13)
-------- -------- -------- -------- --------
Total income (loss) from
investment operations .................. 2.39 1.47 5.38 1.60 (0.12)
-------- -------- -------- -------- --------
Distributions:
Distributions from net investment
income ................................... -- (0.01) (0.09) (0.04) (0.01)
Distributions from net realized gain
on securities ............................ -- (0.33) (0.23) -- --
-------- -------- -------- -------- --------
Total distributions ....................... -- (0.34) (0.32) (0.04) (0.01)
-------- -------- -------- -------- --------
Net asset value at end of period ............ $ 20.01 $ 17.62 $ 16.49 $ 11.43 $ 9.87
======== ======== ======== ======== ========
TOTAL RETURN ................................ 13.56% 9.00% 47.46% 16.25% (1.19)%
======== ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ................................ 0.43% 0.86% 0.83% 0.91% 0.08%
Ratio of net investment income to
average net assets ........................ 0.01% 0.09% 0.89% 0.41% 0.11%
Portfolio turnover rate ..................... 16% 40% 36% 61% 0%
Number of shares outstanding at
end of period (000's) ..................... 45,468 42,422 25,826 8,800 1,001
Net assets at end of period (000's) ......... $909,805 $747,654 $425,787 $100,614 $ 9,885
Average net assets during the
period (000's) ............................ $846,845 $588,056 $238,228 $ 42,232 $ 9,944
Average commission rate paid ................ $ 0.0435 $ 0.0499 n/a n/a n/a
</TABLE>
(1) The net asset value at the beginning of the period is as of commencement of
operations on April 29, 1994.
GROWTH & INCOME FUND
<TABLE>
<CAPTION>
FOR THE SIX PERIOD FROM
MONTHS ENDED FISCAL YEAR ENDED MAY 31, APRIL 29, 1994
NOVEMBER 30, --------------------------------------- TO
1997 1997 1996 1995 MAY 31, 1994
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period .................................... $ 16.87 $ 14.78 $ 11.09 $ 9.87 $ 10.00(1)
---------- ---------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income ..................... 0.04 0.10 0.08 0.09 0.02
Net realized and unrealized gain
(loss) on securities ..................... 2.33 2.38 3.77 1.22 (0.13)
---------- ---------- ---------- ---------- ----------
Total income (loss) from
investment operations .................... 2.37 2.48 3.85 1.31 (0.11)
---------- ---------- ---------- ---------- ----------
Distributions:
Distributions from net investment
income ................................... (0.04) (0.10) (0.07) (0.09) (0.02)
---------- ---------- ---------- ---------- ----------
Distributions from net realized gain
on securities ............................ -- (0.29) (0.09) -- --
---------- ---------- ---------- ---------- ----------
Total distributions ....................... (0.04) (0.39) (0.16) (0.09) (0.02)
---------- ---------- ---------- ---------- ----------
Net asset value at end of period ............ $ 19.20 $ 16.87 $ 14.78 $ 11.09 $ 9.87
========== ========== ========== ========== ==========
TOTAL RETURN ................................ 14.03% 17.08% 34.85% 13.35% (1.11)%
========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ................................ 0.40% 0.81% 0.79% 0.86% 0.07%
Ratio of net investment income to
average net assets ........................ 0.21% 0.70% 0.63% 0.93% 0.22%
Portfolio turnover rate ..................... 43% 45% 64% 97% 11%
Number of shares outstanding at end
of period (000's) ......................... 13,225 12,422 7,685 3,867 1,002
Net assets at end of period (000's) ......... $ 253,947 $ 209,545 $ 113,546 $ 42,867 $ 9,890
Average net assets during the
period (000's) ............................ $ 237,652 $ 161,226 $ 75,158 $ 21,910 $ 9,946
Average commission rate paid ................ $ 0.0500 $ 0.0500 n/a n/a n/a
</TABLE>
(1) The net asset value at the beginning of the period is as of commencement of
operations on April 29, 1994.
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 86
================================================================================
84 FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED
================================================================================
Per share data is for a share of capital stock outstanding throughout the
period. Total return includes reinvestment of dividends on the reinvestment
date. Total returns and ratios for periods of less than one year are not
annualized. The average commission rate paid on investment equity securities (on
a per share basis) is presented for the periods beginning after May 31, 1996.
SCIENCE & TECHNOLOGY FUND
<TABLE>
<CAPTION>
FOR THE SIX PERIOD FROM
MONTHS ENDED FISCAL YEAR ENDED MAY 31, APRIL 29, 1994
NOVEMBER 30, ------------------------------------------ TO
1997 1997 1996 1995 MAY 31, 1994
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period .................................... $ 19.88 $ 20.48 $ 14.43 $ 9.83 $ 10.00(1)
----------- ----------- ----------- ----------- ----------
Income (loss) from investment operations:
Net investment income ..................... (0.05) -- -- 0.03 --
Net realized and unrealized gain
(loss) on securities ..................... 1.15 0.33 8.08 4.72 (0.17)
----------- ----------- ----------- ----------- ----------
Total income (loss) from
investment operations .................... 1.10 0.33 8.08 4.75 (0.17)
----------- ----------- ----------- ----------- ----------
Distributions:
Distributions from net investment
income ................................... -- -- -- (0.02) --
Distributions from net realized gain
on securities ............................ -- (0.93) (2.03) (0.13) --
----------- ----------- ----------- ----------- ----------
Total distributions ....................... -- (0.93) (2.03) (0.15) --
----------- ----------- ----------- ----------- ----------
Net asset value at end of period ............ $ 20.98 $ 19.88 $ 20.48 $ 14.43 $ 9.83
=========== =========== =========== =========== ==========
TOTAL RETURN ................................ 5.37% 1.81% 58.28% 48.61% (1.66)%
=========== =========== =========== =========== ==========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ................................ 0.48% 0.96% 0.94% 1.00% 0.08%
Ratio of net investment income to
average net assets ........................ (0.19)% (0.29)% (0.07)% 0.36% 0.04%
Portfolio turnover rate ..................... 62% 122% 116% 121% 0%
Number of shares outstanding at end
of period (000's) ......................... 44,500 40,484 27,696 11,550 1,001
Net assets at end of period (000's) ......... $ 933,705 $ 804,982 $ 567,187 $ 166,683 $ 9,834
Average net assets during the
period (000's) ............................ $ 901,714 $ 664,608 $ 363,087 $ 64,974 $ 9,918
Average commission rate paid ................ $ 0.0435 $ 0.0393 n/a n/a n/a
</TABLE>
(1) The net asset value at the beginning of the period is as of commencement of
operations on April 29, 1994.
SOCIAL AWARENESS FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, ------------------------------------------------------------------
1997 1997 1996 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period .................................... $ 17.90 $ 15.49 $ 13.02 $ 11.98 $ 12.12 $ 11.43
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income ..................... 0.11 0.24 0.26 0.27 0.26 0.24
Net realized and unrealized gain
(loss) on securities ..................... 2.22 4.19 3.37 1.75 (0.02) 1.22
--------- --------- --------- --------- --------- ---------
Total income from investment
operations ............................... 2.33 4.43 3.63 2.02 0.24 1.46
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ................................... (0.11) (0.24) (0.25) (0.27) (0.26) (0.24)
Distributions from net realized gain
on securities ............................ -- (1.78) (0.91) (0.71) (0.12) (0.53)
--------- --------- --------- --------- --------- ---------
Total distributions ....................... (0.11) (2.02) (1.16) (0.98) (0.38) (0.77)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ............ $ 20.12 $ 17.90 $ 15.49 $ 13.02 $ 11.98 $ 12.12
========= ========= ========= ========= ========= =========
TOTAL RETURN ................................ 13.07% 30.48% 28.85% 18.19% 1.97% 13.08%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ................................ 0.28% 0.56% 0.56% 0.58% 0.60% 0.63%
Ratio of net investment income to
average net assets ........................ 0.64% 1.53% 1.80% 2.22% 2.19% 2.14%
Portfolio turnover rate ..................... 56% 109% 117% 148% 83% 106%
Number of shares outstanding at
end of period (000's) ..................... 11,439 8,677 5,220 4,143 3,817 2,819
Total net assets at end of
period (000's) ............................ $ 230,197 $ 155,349 $ 80,887 $ 53,927 $ 45,729 $ 34,166
Average net assets during the
period (000's) ............................ $ 194,344 $ 106,139 $ 66,888 $ 47,942 $ 41,002 $ 26,920
Average commission rate paid ................ $ 0.0400 $ 0.0400 n/a n/a n/a n/a
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 87
================================================================================
FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED 85
================================================================================
Per share data is for a share of capital stock outstanding throughout the
period. Total return includes reinvestment of dividends on the reinvestment
date. Total returns and ratios for periods of less than one year are not
annualized. The average commission rate paid on investment equity securities (on
a per share basis) is presented for the periods beginning after May 31, 1996.
ASSET ALLOCATION FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------------------
1997 1997 1996 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period .................................... $ 12.57 $ 12.55 $ 11.24 $ 10.84 $ 11.18 $ 10.66
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income ..................... 0.20 0.77 0.44 0.44 0.37 0.35
Net realized and unrealized gain
(loss) on securities ..................... 1.08 1.44 1.53 0.82 (0.15) 0.61
--------- --------- --------- --------- --------- ---------
Total income from investment
operations ............................... 1.28 2.21 1.97 1.26 0.22 0.96
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ................................... (0.20) (0.78) (0.44) (0.44) (0.37) (0.35)
Distributions from net realized gain
on securities ............................ -- (1.41) (0.22) (0.42) (0.19) (0.09)
--------- --------- --------- --------- --------- ---------
Total distributions ....................... (0.20) (2.19) (0.66) (0.86) (0.56) (0.44)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ............ $ 13.65 $ 12.57 $ 12.55 $ 11.24 $ 10.84 $ 11.18
========= ========= ========= ========= ========= =========
TOTAL RETURN ................................ 10.23% 15.89% 17.90% 12.43% 1.86% 9.17%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ................................ 0.28% 0.57% 0.57% 0.58% 0.59% 0.70%
Ratio of net investment income to
average net assets ........................ 1.52% 3.26% 3.62% 4.03% 3.24% 3.28%
Portfolio turnover rate ..................... 10% 103% 119% 133% 76% 78%
Number of shares outstanding at
end of period (000's) ..................... 13,420 14,107 15,142 16,319 17,956 14,758
Total net assets at end of
period (000's) ............................ $ 183,152 $ 177,347 $ 190,024 $ 183,393 $ 194,576 $ 165,002
Average net assets during the
period (000's) ............................ $ 182,267 $ 179,615 $ 187,576 $ 186,487 $ 185,036 $ 151,450
Average commission rate paid ................ $ 0.0400 $ 0.0401 n/a n/a n/a n/a
</TABLE>
CAPITAL CONSERVATION FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------------------
1997 1997 1996 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period .................................... $ 9.31 $ 9.23 $ 9.52 $ 9.13 $ 9.87 $ 9.29
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income .................... 0.30 0.62 0.62 0.63 0.61 0.65
Net realized and unrealized gain
(loss) on securities ................... 0.29 0.08 (0.29) 0.39 (0.69) 0.58
--------- --------- --------- --------- --------- ---------
Total income (loss) from
investment operations .................. 0.59 0.70 0.33 1.02 (0.08) 1.23
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ................................... (0.29) (0.62) (0.62) (0.63) (0.61) (0.65)
Distributions from net realized gain
on securities ............................ -- -- -- -- (0.05) --
--------- --------- --------- --------- --------- ---------
Total distributions ....................... (0.29) (0.62) (0.62) (0.63) (0.66) (0.65)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ............ $ 9.61 $ 9.31 $ 9.23 $ 9.52 $ 9.13 $ 9.87
========= ========= ========= ========= ========= =========
TOTAL RETURN ................................ 6.42% 7.75% 3.41% 11.80% (1.13)% 13.60%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ................................ 0.28% 0.57% 0.57% 0.58% 0.59% 0.67%
Ratio of net investment income to
average net assets ........................ 3.13% 6.59% 6.47% 6.88% 6.24% 6.77%
Portfolio turnover rate ..................... 8% 45% 80% 100% 55% 58%
Number of shares outstanding at end
of period (000's) ......................... 7,042 7,168 7,604 6,935 6,712 5,095
Total net assets at end of
period (000's) ............................ $ 67,649 $ 66,747 $ 70,212 $ 66,031 $ 61,305 $ 50,290
Average net assets during the
period (000's) ............................ $ 67,640 $ 69,352 $ 70,271 $ 61,568 $ 59,210 $ 43,316
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 88
================================================================================
86 FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED
================================================================================
Per share data is for a share of capital stock outstanding throughout the
period. Total return includes reinvestment of dividends on the reinvestment
date. Total returns and ratios for periods of less than one year are not
annualized.
GOVERNMENT SECURITIES FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, ------------------------------------------------------------------
1997 1997 1996 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period .................................... $ 9.67 $ 9.61 $ 9.89 $ 9.55 $ 10.30 $ 9.84
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income .................... 0.29 0.59 0.61 0.60 0.55 0.61
Net realized and unrealized gain
(loss) on securities ................... 0.32 0.06 (0.28) 0.35 (0.59) 0.59
--------- --------- --------- --------- --------- ---------
Total income (loss) from
investment operations .................. 0.61 0.65 0.33 0.95 (0.04) 1.20
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ................................... (0.29) (0.59) (0.61) (0.61) (0.55) (0.61)
Distributions from net realized gain
on securities ............................ -- -- -- -- (0.16) (0.13)
--------- --------- --------- --------- --------- ---------
Total distributions ....................... (0.29) (0.59) (0.61) (0.61) (0.71) (0.74)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ............ $ 9.99 $ 9.67 $ 9.61 $ 9.89 $ 9.55 $ 10.30
========= ========= ========= ========= ========= =========
TOTAL RETURN ................................ 6.36% 6.94% 3.32% 10.43% (0.66)% 12.56%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ................................ 0.27% 0.56% 0.56% 0.58% 0.59% 0.67%
Ratio of net investment income to
average net assets ........................ 2.96% 6.11% 6.21% 6.36% 5.44% 6.08%
Portfolio turnover rate ..................... 8% 38% 36% 229% 85% 105%
Number of shares outstanding at end
of period (000's) ......................... 8,614 8,672 8,164 5,478 4,544 3,110
Total net assets at end of
period (000's) ............................ $ 86,083 $ 83,827 $ 78,423 $ 54,174 $ 43,401 $ 32,023
Average net assets during the
period (000's) ............................ $ 84,661 $ 83,293 $ 68,017 $ 45,200 $ 41,596 $ 26,145
</TABLE>
INTERNATIONAL GOVERNMENT BOND FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------------------
1997 1997 1996 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period .................................... $ 11.33 $ 11.79 $ 12.72 $ 10.97 $ 11.16 $ 10.43
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income .................... 0.27 0.63 0.65 0.65 0.62 0.76
Net realized and unrealized gain
(loss) on securities ................... (0.14) (0.49) (0.89) 1.80 (0.20) 0.70
--------- --------- --------- --------- --------- ---------
Total income (loss) from
investment operations .................... 0.13 0.14 (0.24) 2.45 0.42 1.46
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ................................... (0.19) (0.58) (0.68) (0.70) (0.60) (0.73)
Distributions from net realized gain
on securities ............................ -- (0.02) (0.01) -- (0.01) --
--------- --------- --------- --------- --------- ---------
Total distributions ....................... (0.19) (0.60) (0.69) (0.70) (0.61) (0.73)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ............ 11.27 $ 11.33 $ 11.79 $ 12.72 $ 10.97 $ 11.16
========= ========= ========= ========= ========= =========
TOTAL RETURN ................................ 1.16% 1.13% (1.91)% 23.23% 3.87% 14.50%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ................................ 0.28% 0.56% 0.56% 0.59% 0.48% 0.14%
Ratio of net investment income to
average net assets ........................ 2.42% 5.13% 5.45% 5.83% 5.87% 7.02%
Portfolio turnover rate ..................... 9% 4% 11% 6% 3% 26%
Number of shares outstanding at end
of period (000's) ......................... 15,001 15,680 12,073 6,111 3,741 2,062
Total net assets at end of
period (000's) ............................ $ 169,065 $ 177,709 $ 142,383 $ 77,734 $ 41,028 $ 23,009
Average net assets during the
period (000's) ............................ $ 174,490 $ 166,147 $ 114,693 $ 51,451 $ 33,561 $ 18,135
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 89
================================================================================
FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED 87
================================================================================
Per share data is for a share of capital stock outstanding throughout the
period. Total return includes reinvestment of dividends on the reinvestment
date.
MONEY MARKET FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, ----------------------------------------------------------------------
1997 1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of
period ............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income ................ 0.03 0.05 0.05 0.05 0.03 0.03
---------- ---------- ---------- ---------- ---------- ----------
Distributions:
Distributions from net investment
income .............................. (0.03) (0.05) (0.05) (0.05) (0.03) (0.03)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ==========
TOTAL RETURN ........................... 2.59% 5.02% 5.26% 4.90% 2.83% 2.85%
========== ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ........................... 0.27% 0.57% 0.57% 0.57% 0.58% 0.63%
Ratio of net investment income to
average net assets ................... 2.58% 4.95% 5.14% 4.75% 2.78% 2.81%
Number of shares outstanding at end
of period (000's) .................... 149,246 128,125 83,618 82,256 50,534 45,323
Total net assets at end of
period (000's) ....................... $ 149,246 $ 128,125 $ 83,618 $ 82,254 $ 50,533 $ 45,322
Average net assets during the
period (000's) ....................... $ 135,737 $ 113,882 $ 84,271 $ 67,021 $ 46,222 $ 45,562
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE> 90
================================================================================
AMERICAN GENERAL SERIES PORTFOLIO COMPANY
================================================================================
BOARD OF DIRECTORS
Norman Hackerman
John W. Lancaster
Ben H. Love
Joe C. Osborne
F. Robert Paulsen
Peter V. Tuters
R. Miller Upton
Thomas L. West, Jr.
DISTRIBUTOR
The Variable Annuity Marketing
Company (VAMCO)
2929 Allen Parkway
Houston, Texas 77019
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
INVESTMENT ADVISER
The Variable Annuity Life
Insurance Company (VALIC)
2929 Allen Parkway
Houston, Texas 77019
INVESTMENT SUB-ADVISERS
Bankers Trust Company
1 Bankers Trust Plaza
New York, New York 10006
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, Maryland 21202
Value Line, Inc.
220 East 42nd Street
New York, New York 10017-5891
INDEPENDENT AUDITORS
Ernst & Young LLP
1221 McKinney
Houston, Texas 77010
SHAREHOLDER SERVICE AGENT
The Variable Annuity Life
Insurance Company (VALIC)
2929 Allen Parkway
Houston, Texas 77019
OFFICERS
Thomas L. West, Jr.,
Chairman and President
Craig R. Rodby,
Executive Vice President
Michael G. Atnip
Executive Vice President
Norman Jaskol,
Vice President and
Senior Investment Officer
Brent C. Nelson,
Vice President
Teresa S. Moro,
Vice President and
Investment Officer
John W. Mossbarger,
Vice President and
Investment Officer
Leon A. Olver,
Vice President and
Investment Officer
William Trimbur, Jr.,
Vice President and
Investment Officer
Cynthia A. Toles,
General Counsel
and Secretary
Gregory R. Seward,
Treasurer
Kathryn A. Pearce,
Controller
Nori L. Gabert,
Assistant Secretary
Earl E. Allen, Jr.,
Assistant Treasurer
Heriberto R. Valdez,
Assistant Controller
This report is for the information of the shareholders and variable
contract owners participating in the American General Series Portfolio Company.
It is authorized for distribution to other persons only when preceded or
accompanied by an effective prospectus which contains information on how to
purchase shares and other pertinent information.
If you would like further information about this material or products
issued by VALIC or American General Life Insurance Company, please contact your
account representative.
"Standard & Poor's(R)", "Standard & Poor's MidCap 400 Index" and "S&P 500
(R)" are trademarks of Standard & Poor's Corporation. The Stock Index Fund and
MidCap Index Fund are not sponsored, endorsed, sold or promoted by S&P and S&P
makes no representation regarding the advisability of investing in the funds.
The Russell 2000(R) Index is a trademark / service mark of the Frank Russell
Company. Russell(TM) is a trademark of the Frank Russell Company.
[VALIC LOGO]
- --------------------------------------------------------------------------------
<PAGE> 91
AMERICAN GENERAL SERIES PORTFOLIO COMPANY
===============
P.O. Box 3206 Bulk Rate
Houston, Texas 77253-3206 U.S. Postage
PAID
Permit No. 6748
Houston, Texas
===============
[VALIC LOGO]
