<PAGE> 1
SEMI-ANNUAL REPORT
NOVEMBER 30, 1998
American
General
Series
Portfolio
Company
[FRONT COVER]
<PAGE> 2
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AMERICAN GENERAL SERIES PORTFOLIO COMPANY - SEMI-ANNUAL REPORT NOVEMBER 30, 1998
================================================================================
TABLE OF CONTENTS
<TABLE>
<S> <C>
CHAIRMAN'S LETTER............................................................... 1
STOCK INDEX FUND................................................................ 4
MIDCAP INDEX FUND............................................................... 12
SMALL CAP INDEX FUND............................................................ 19
INTERNATIONAL EQUITIES FUND..................................................... 36
GROWTH FUND..................................................................... 42
GROWTH & INCOME FUND............................................................ 45
SCIENCE & TECHNOLOGY FUND....................................................... 49
SOCIAL AWARENESS FUND........................................................... 52
ASSET ALLOCATION FUND........................................................... 59
CAPITAL CONSERVATION FUND....................................................... 68
GOVERNMENT SECURITIES FUND...................................................... 71
INTERNATIONAL GOVERNMENT BOND FUND.............................................. 73
MONEY MARKET FUND............................................................... 78
NOTES TO FINANCIAL STATEMENTS................................................... 81
FINANCIAL HIGHLIGHTS............................................................ 84
SUPPLEMENTARY INFORMATION....................................................... 90
</TABLE>
<PAGE> 3
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AGSPC CHAIRMAN'S LETTER 1
================================================================================
Dear Valued Customer,
It is my pleasure to introduce American General Series Portfolio Company's
(AGSPC) November 30, 1998 Semi-Annual Report for your review. In this report,
you will find financial and performance information for AGSPC's 13 funds for the
six-month period ending November 30, 1998. 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 three to determine which funds
are available under your contract.
MARKET CONDITIONS
The six-month period ended November 30 was a volatile period for securities
markets. Specifically, the third calendar quarter (contained in the period) was
a wake-up call to many investors who expected the U.S. bull market to rage on ad
infinitum. The Standard & Poor's 500 Index (S&P 500(R)) closed down 10% for the
quarter, making it the first down quarter in over three years and by far the
worst quarter in eight years. The negative impact of the overseas markets on
U.S. shores deepened with the economic crises in Japan, other points in Asia,
and emerging markets acting as the main catalyst. For the quarter, the average
diversified domestic equity portfolio declined a negative 15% and the average
diversified international equity portfolio lost 16%. Fortunately, the
third-quarter performance was a market correction, and very-strong equity market
performance in October and November served to more than offset it. As a result,
equity market returns for the entire six months ended November 30 were
favorable, and the S&P 500 displayed a 7.49% total return for the period.
Although it was a good period for the overall equity market, it was a difficult
environment for active equity managers who seek to maintain broadly diversified
portfolios relative to the S&P 500, because the strong performance of large-cap
stocks far outran that of the mid-cap and small-cap sectors. To illustrate, the
Lipper Mid-Cap Funds Index and Small-Cap Funds Index showed negative returns of
5% and 14%, respectively, for the six-month period.
On the fixed income side, the market shrugged off the disruptive effect of
Long-Term Capital Management's debacle in August, and enjoyed a low-inflation
environment and a Fed easing of interest rates. As a result, the bond market
returns, as reflected in the Lehman Aggregate Bond Index's 5% total return for
the period, was favorable.
FUND RETURNS (1)
Indexed Funds Indexed Funds are designed to emulate the performance of their
respective indices. All four of our equity indexed funds provided slightly
better than index returns.
o The large capitalization Stock Index Fund returned 7.83% before expenses,
with a positive tracking difference of 0.34 over the S&P 500 Index.
o Although S&P 500 Index returns were positive, both MidCap S&P 400 and
SmallCap Russell 2000(R) Indices had negative returns. However, our MidCap
Index Fund tracked the MidCap 400(R) with a positive 0.30 difference,
returning -1.26% before expenses.
o Similarly, the Small Cap Index Fund tracked the Russell 2000 Index with a
positive 0.46~variance, returning -11.89% before expenses.
o The International Equities Fund tracked the EAFE Index with a positive 0.10
difference and returned 0.44% before expenses.
Managed Funds
o The Science & Technology Fund was our best performing managed stock fund,
as it returned 10.21%, 2.72 above the S&P 500 Index before expenses.
o The Social Awareness Fund was the next best performing managed stock fund,
with a return of 7.30%, 0.19 below the S&P 500 Index before expenses. The
absence of tobacco stocks in the Fund detracted from the performance, as
tobacco stocks were the best performing group in the S&P 500 Index with a
return of about 50%.
o AGSPC's Growth Fund which concentrates on companies with above average
growth potential in the service sectors, recorded a negative return of
2.88% before expenses with a difference of 10.37 below the S&P 500. The
fund return was negatively impacted because of the holdings largely in the
mid-cap media service sector, which underperformed large-cap stocks.
o The Growth & Income Fund utilizes the stock selection process of the Value
Line Ranking System which tends to emphasis small and mid-sized companies.
The fund underperformed the larger capitalization issues in the S&P 500 by
10.06 with a return of -2.57% before expenses.
o The Asset Allocation Fund returned 5.26% and underperformed the relevant
blended Index by 1.65 before expenses. Due to the flight to quality, bonds
lagged while stocks tracked their ~relevant indices.
Bond Funds
In general, bond funds underperformed the relevant indices due to flight to
quality concerns brought on by crises in Russia, Southeast Asia, Brazil, and the
Long-Term Capital hedge fund recapitalization.
o The best relative return was produced by the Money Market Fund with a
return of 2.81%, ~0.50 over the NYC CD Index.
o International Government Bond returned 11.33%, and underperformed the
relevant Index by 0.43.
o The Government Securities Fund returned 5.77%, and underperformed the long
term Treasury Index by 1.14 due to spread widening in Agency Securities.
o The Capital Conservation Fund returned 2.93%, and underperformed the
relevant Corporate Bond Index by 1.27 due to spread widening associated
with less liquid corporate bonds.
All bond fund returns are before expenses.
FUTURE OUTLOOK
While international markets outside of North America and Europe remain
unsettled, the U. S. economy is experiencing unprecedented prosperity. The
Western European economy should get an additional boost by the introduction of
the common currency, the Euro, at the start of 1999. Furthermore, with worldwide
inflation rates low, and the Fed wary of weakness in Asia and emerging markets,
it appears that we can expect a continuation of the current stable rate
environment. As a result, the outlook for bond and equity markets is excellent.
In fact, some of our equity portfolios may even get a boost in future
performance from a "snap back" in the valuations of small and mid-cap issues
relative to the very large-cap issues that have led the market in recent
quarters. Additionally, the larger-than-expected U.S. Government budget surplus
is bullish for bond markets. In short, the future looks promising.
With the prospect of another good year ahead, I hope that you will continue to
trust your future with us. I assure you that we continue to strive to provide
you with a variety of quality options to meet your investment needs. In today's
environment of rapidly changing markets, the commitment to your financial
security remains American General Series Portfolio Company's highest priority.
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
January 21, 1999 American General Series Portfolio Company
FUND RETURNS(1) TO INDEX
6 Months Ended 11/30/98
[GRAPH]
(1) Represents fund performance before subtracting expenses. See page two for
applicable fund expenses and fund level returns after expenses.
<PAGE> 4
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2 AGSPC CHAIRMAN'S LETTER CONTINUED
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FUND RETURNS AND TRACKING DIFFERENCES
For the six months ended November 30, 1998
<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 .............................. 7.67% 0.16% 7.83% 7.49% 0.34
MidCap Index Fund /
Standard & Poor's MidCap 400 ........................... (1.42) 0.16 (1.26) (1.56) 0.30
Small Cap Index Fund / Russell 2000...................... (12.09) 0.20 (11.89) (12.35) 0.46
International Equities Fund / EAFE ...................... 0.23 0.21 0.44 0.34 0.10
MANAGED FUNDS:
Growth Fund / S&P 500 ................................... (3.31) 0.43 (2.88) 7.49 (10.37)
Growth & Income Fund / S&P 500 .......................... (2.97) 0.40 (2.57) 7.49 (10.06)
Science & Technology Fund / S&P 500 ..................... 9.74 0.47 10.21 7.49 2.72
Social Awareness Fund / S&P 500 ......................... 7.02 0.28 7.30 7.49 (0.19)
Asset Allocation Fund / Benchmark(b) .................... 4.98 0.28 5.26 6.91 (1.65)
Capital Conservation Fund /
Merrill Lynch Corporate Master Bond .................... 2.65 0.28 2.93 4.20 (1.27)
Government Securities Fund /
Lehman Brothers U.S. Treasury .......................... 5.49 0.28 5.77 6.91 (1.14)
International Government Bond Fund /
Salomon Brothers Non U.S. Gov't Bond ................... 11.05 0.28 11.33 11.76 (0.43)
Money Market Fund / 30 Day Certificate of Deposit
Primary Offering Rate by New York City Banks
(NYC 30 Day CD Rate).................................... 2.53 0.28 2.81 2.31 0.50
</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 30, MAY 31, NOVEMBER 30, 12/1/97 TO 6/1/98 TO
FUND 1997 1998 1998 5/31/98 11/30/98
- ---- ------------ ------- ------------- ---------- ---------
<S> <C> <C> <C> <C> <C>
Stock Index (emulate S&P 500)................................... $29.38 $33.38 $35.73 $ 0.36 $ 0.20
MidCap Index (emulate MidCap 400) .............................. 23.98 25.27 24.79 1.47 0.11
Small Cap Index (emulate Russell 2000).......................... 18.32 17.94 15.67 1.50 0.10
International Equities
(foreign long term growth stocks) ............................. 10.83 11.95 11.84 0.43 0.13
Growth Fund (long term growth of capital) ...................... 20.01 22.08 21.35 0.34 0.00
Growth & Income Fund (long term growth
of capital and current income) ................................ 19.20 19.91 19.28 0.25 0.04
Science & Technology Fund (long term growth
of capital) ................................................... 20.98 22.07 24.22 0.00 0.00
Social Awareness (social criteria growth stocks) ............... 20.12 22.16 23.60 0.93 0.11
Asset Allocation (asset allocation) ............................ 13.65 14.02 14.51 1.00 0.20
Capital Conservation (quality corporate bonds) ................. 9.61 9.68 9.64 0.32 0.30
Government Securities (intermediate and
long term government bonds) ................................... 9.99 10.09 10.36 0.29 (0.28)
International Government Bond (high quality
foreign government debt securities) ........................... 11.27 11.42 12.50 0.02 0.18
Money Market (money market instruments) ........................ 1.00 1.00 1.00 0.02 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.
<PAGE> 5
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AGSPC CHAIRMAN'S LETTER CONTINUED 3
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FUNDS AVAILABLE UNDER VARIABLE ANNUITY CONTRACTS
<TABLE>
<CAPTION>
AMERICAN GENERAL
LIFE
VALIC SEPARATE ACCOUNT A CONTRACT FORM INSURANCE COMPANY
------------------------------------------------------------------ -------------------
SEPARATE ACCOUNT A
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO INDEPEN- GROUP -------------------
DIRECTOR DIRECTOR DIRECTOR DIRECTOR DENCE UNIT NON
FUND PLUS 2 1 T PLUS IMPACT PURCHASE QUALIFIED QUALIFIED
- ---- --------- --------- --------- --------- -------- ------- -------- --------- ---------
<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).................. Yes No Yes No Yes Yes No Yes Yes
Small Cap Index
(emulate Russell 2000)................ Yes No Yes Yes Yes No No No No
International Equities
(foreign long term growth stocks...... Yes No Yes No Yes No No No No
Growth
(long term growth of capital)......... Yes Yes Yes Yes No No No No No
Growth & Income (long term
growth of capital and current income.. Yes No Yes No No No No No No
Science & Technology
(long term growth of capital)......... Yes Yes Yes Yes No No No No No
Social Awareness
(social criteria growth stocks)....... Yes Yes Yes Yes Yes No No No No
Asset Allocation
(asset allocation).................... Yes No Yes Yes Yes Yes No Yes Yes
Capital Conversation
(quality corporate bonds)............ Yes No Yes No Yes Yes No Yes Yes
Government Securities (intermediate
and long term government bonds)....... Yes No Yes No Yes No No Yes Yes
Int'l Government Bond (high quality
foreign government debt securities.... Yes Yes Yes No Yes No No No No
Money Market
(money market instruments)............ Yes Yes Yes Yes Yes Yes No Yes Yes
<CAPTION>
AMEICAN GENERAL LIFE INSURANCE COMPANY
-------------------------------------------------------------------------------
PLATINUM AMERICAN
SEPARATE PLATINUM INVESTOR PPVUL AMERICAN GENERAL
ACCOUNT SELECT INVESTOR VARIABLE LEGACY ESTATE GENERAL SIGNATURE
FUND B RESERVE I & II ANNUALLY PLUS MANAGER SIGNATURE II-A
- ---- -------- ------- --------- -------- ------ ------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Stock Index
(emulate S&P 500)..................... Yes No Yes Yes No No No Yes
MidCap Index
(emulate MidCap 400).................. Yes No Yes Yes No No No Yes
Small Cap Index
(emulate Russell 2000)................ No No No No No No No No
International Equities
(foreign long term growth stocks...... No No Yes Yes No No No Yes
Growth
(long term growth of capital)......... No No No No No No No No
Growth & Income (long term
growth of capital and current income.. No No No No No No No No
Science & Technology
(long term growth of capital)......... No No No No No No No No
Social Awareness
(social criteria growth stocks)....... No No No No No No No No
Asset Allocation
(asset allocation).................... Yes No No No No No No No
Capital Conversation
(quality corporate bonds)............ Yes No No No No No No No
Government Securities (intermediate
and long term government bonds)....... Yes No No No No No No No
Int'l Government Bond (high quality
foreign government debt securities.... No No No No No No No No
Money Market
(money market instruments)............ Yes Yes Yes Yes Yes Yes Yes Yes
</TABLE>
<PAGE> 6
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STOCK INDEX FUND - STATEMENT OF NET ASSETS
4 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
COMMON STOCKS - 99.14%
ADVERTISING - 0.18%
43,350 Interpublic Group Cos., Inc........................... $ 2,980,312
71,700 Omnicom Group, Inc.................................... 3,831,469
------------
6,811,781
------------
AEROSPACE/DEFENSE - 1.43%
407,008 Boeing Co............................................. 16,534,700
29,000 EG & G, Inc........................................... 810,187
61,260 General Dynamics Corp................................. 3,556,908
15,400 Goodrich (B.F.) Co.................................... 584,238
87,576 Lockheed Martin Corp.................................. 9,086,010
30,800 Northrop Grumman Corp................................. 2,502,500
155,000 Raytheon Co. Class B.................................. 8,583,125
49,800 TRW Inc............................................... 2,742,113
101,300 United Technologies Corp.............................. 10,858,094
------------
55,257,875
------------
AIRLINES - 0.34%
72,600* AMR Corp.............................................. 4,787,063
63,200 Delta Air Lines, Inc.................................. 3,393,050
124,200 Southwest Airlines Co................................. 2,670,300
41,300* US Airways Group, Inc................................. 2,147,600
------------
12,998,013
------------
APPAREL & PRODUCTS - 0.04%
2* Abercrombie and Fitch Co.............................. 112
27,000* Fruit of the Loom, Inc. Class A....................... 398,250
32,900 Liz Claiborne, Inc.................................... 1,114,488
------------
1,512,850
------------
APPLIANCES/FURNISHINGS - 0.09%
35,000 Maytag Corp........................................... 1,894,375
30,200 Whirlpool Corp........................................ 1,691,200
------------
3,585,575
------------
AUTO - CARS - 1.16%
460,300 Ford Motor Co......................................... 25,431,575
279,600 General Motors Corp................................... 19,572,000
------------
45,003,575
------------
AUTO - ORIGINAL EQUIPMENT - 0.06%
54,400 Danaher Corp.......................................... 2,482,000
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
AUTO - REPLACEMENT PARTS - 0.24%
73,900* AutoZone, Inc......................................... $ 2,226,237
18,700 Cooper Tire & Rubber Co............................... 365,819
74,400 Genuine Parts Co...................................... 2,450,550
73,500 Goodyear Tire & Rubber Co............................. 4,171,125
15,800 Pep Boys-Manny, Moe & Jack............................ 223,175
1* SPX Corp. (fractional share).......................... 26
------------
9,436,932
------------
BANKS - NEW YORK CITY - 1.71%
337,200 Bank of New York Co., Inc............................. 11,549,100
923,271 Citigroup Inc......................................... 46,336,663
76,100 J. P. Morgan & Co. Inc................................ 8,133,188
------------
66,018,951
------------
BANKS - OTHER - 3.55%
727,321 BankAmerica Corp...................................... 47,412,237
136,800 BankBoston Corp....................................... 5,694,300
404,000 First Union Corp...................................... 24,543,000
232,386 Fleet Financial Group, Inc............................ 9,687,591
116,500 Mellon Bank Corp...................................... 7,332,219
133,000 National City Corp.................................... 8,944,250
51,600 Providian Financial Corp.............................. 4,737,525
28,000 Republic of New York Corp............................. 1,309,000
53,500 Union Planters Corp................................... 2,547,938
703,930 Wells Fargo Company................................... 25,341,480
------------
137,549,540
------------
BANKS - REGIONAL - 3.01%
471,550 Bank One Corp......................................... 24,196,409
349,764 Chase Manhattan Corp.................................. 22,188,154
67,950 Comerica Inc.......................................... 4,382,775
106,275 Fifth Third Bancorp................................... 7,054,003
65,560 Huntington Bancshares, Inc............................ 1,942,215
180,040 KeyCorp............................................... 5,524,978
51,500 Mercantile Bancorporation Inc......................... 2,269,219
53,900 Northern Trust Corp................................... 4,352,425
135,900 PNC Bank Corp......................................... 7,007,344
84,400 Regions Financial Corp................................ 3,270,500
61,200 State Street Corp..................................... 4,199,850
84,200 Summit Bancorporation................................. 3,520,613
72,200 SunTrust Banks, Inc................................... 5,040,463
102,150 Synovus Financial Corp................................ 2,253,684
301,390 U.S. Bancorp.......................................... 11,094,919
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
BANKS - REGIONAL - Continued
95,713 Wachovia Corp......................................... $ 8,356,941
------------
116,654,492
------------
BEVERAGE - BREWERS/DISTRIBUTORS - 0.49%
11,900 Adolph Coors Class B.................................. 592,025
202,800 Anheuser-Busch Companies, Inc......................... 12,294,750
18,915 Brown-Forman Corp Class B............................. 1,376,066
135,500 Seagram Co. Ltd....................................... 4,649,344
------------
18,912,185
------------
BEVERAGE - SOFT DRINKS - 2.60%
998,400 Coca-Cola Co.......................................... 69,950,400
160,600 Coca Cola Enterprises, Inc............................ 6,072,687
630,900 PepsiCo, Inc.......................................... 24,407,944
------------
100,431,031
------------
BROADCASTING - 1.57%
311,858* CBS Corp.............................................. 9,297,266
89,900* Clear Channel Communications.......................... 4,202,825
141,750 Comcast Corp. Class A Special......................... 6,892,594
241,000* Media One Group Inc................................... 9,760,500
197,178 Tele-Comm Liberty Media Group
Class A.............................................. 8,330,771
223,193 U S WEST, Inc......................................... 13,893,764
126,400* Viacom, Inc Class B................................... 8,413,500
------------
60,791,220
------------
BUILDING MATERIALS - 0.35%
8,900 Armstrong World Inds. Inc............................. 592,962
150,600 Lowe's Companies, Inc................................. 6,362,850
162,800 Masco Corp............................................ 4,700,850
60,700 Sherwin-Williams Co................................... 1,722,363
------------
13,379,025
------------
CHEMICAL - MAJOR - 1.52%
92,200 Dow Chemical Co....................................... 8,977,975
449,100 E.I. du Pont de Nemours and Co........................ 26,384,625
47,500 Hercules, Inc......................................... 1,561,562
249,000 Monsanto Co........................................... 11,282,812
54,900 Morton International, Inc............................. 1,616,119
66,500 PPG Industries, Inc................................... 4,068,969
54,900 Rohm and Haas Co...................................... 1,918,069
68,300 Union Carbide Corp.................................... 3,056,425
------------
58,866,556
------------
</TABLE>
<PAGE> 7
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STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 5
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
CHEMICAL - MISCELLANEOUS - 0.37%
84,200 Air Products and Chemicals Inc........................ $ 3,210,125
45,837 Eastman Chemical Co................................... 2,655,681
27,600 Ecolab Inc............................................ 853,875
15,300* FMC Corp.............................................. 889,312
41,400 W.R. Grace & Co....................................... 683,100
26,500 Great Lakes Chem Corp................................. 1,058,344
15,428 Millipore Corp........................................ 433,913
20,300 Nalco Chemical Co..................................... 678,781
64,700 Praxair, Inc.......................................... 2,470,731
39,500 Sigma Aldrich Corp.................................... 1,268,938
------------
14,202,800
------------
CONGLOMERATES - 1.11%
232,500 Allied Signal Inc..................................... 10,230,000
38,800 ITT Inds, Inc......................................... 1,396,800
39,400 Loews Corp............................................ 3,940,000
125,000 RJR Nabisco Holdings Corp............................. 3,601,563
65,200 Tenneco Inc........................................... 2,322,750
58,300 Textron Inc........................................... 4,529,181
256,667 Tyco International Ltd................................ 16,891,896
------------
42,912,190
------------
CONSUMER FINANCE - 0.25%
26,300 Capital One Financial Corp............................ 2,893,000
306,412 MBNA Corp............................................. 6,951,722
------------
9,844,722
------------
CONTAINERS - METAL/GLASS - 0.23%
4,700 Ball Corp............................................. 200,925
101,100 Corning Inc........................................... 4,056,638
65,600 Crown Cork & Seal Co., Inc............................ 2,214,000
12,100 Owens Corning......................................... 451,481
61,200* Owens-Illinois, Inc................................... 1,966,050
------------
8,889,094
------------
CONTAINERS - PAPER - 0.08%
6,500 Bemis Co., Inc........................................ 245,781
46,814 Sealed Air Corp....................................... 2,065,668
17,700 Temple-Inland Inc..................................... 950,269
------------
3,261,718
------------
COSMETICS/TOILETRIES - 0.73%
6,800 Alberto-Culver Co. Class B............................ 174,250
123,700 Avon Products, Inc.................................... 5,025,313
444,700 Gillette Co........................................... 20,428,406
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COSMETICS/TOILETRIES - Continued
60,000 Int'l. Flavors & Fragrances,.......................... $ 2,512,500
------------
28,140,469
------------
DRUGS - 8.68%
36,000 Allergan, Inc......................................... 2,191,500
43,200* ALZA Corp............................................. 2,257,200
555,800 American Home Products Corp........................... 29,596,350
103,400* Amgen Inc............................................. 7,780,850
23,900 Bausch & Lomb Inc..................................... 1,326,450
405,200 Bristol Myers Squibb Co............................... 49,662,325
448,600 Eli Lilly and Co...................................... 40,233,813
482,200 Merck & Co., Inc...................................... 74,680,725
219,870 Pharmacia & Upjohn, Inc............................... 11,446,982
528,000 Pfizer, Inc........................................... 58,938,000
307,000 Schering-Plough Corp.................................. 32,657,125
326,700 Warner-Lambert Co..................................... 24,665,850
------------
335,437,170
------------
ELECTRICAL EQUIPMENT - 3.66%
92,284 AMP Inc............................................... 4,464,238
62,000* Cabletron Systems, Inc................................ 868,000
189,000 Emerson Electric Co................................... 12,285,000
1,322,700 General Electric Co................................... 119,704,350
28,400 W. W. Grainger Inc.................................... 1,199,900
30,500 National Service Indus., Inc.......................... 1,178,063
48,300 Raychem Corp.......................................... 1,645,219
6,800 Thomas & Betts Corp................................... 294,525
------------
141,639,295
------------
ELECTRONIC INSTRUMENTS - 0.10%
1* Commscope Inc......................................... 15
27,100 Perkin-Elmer Corp..................................... 2,527,075
5,400 Tektronix, Inc........................................ 144,788
70,400* Thermo Electron Corp.................................. 1,188,000
------------
3,859,878
------------
ENTERTAINMENT - 1.53%
849,756 Walt Disney Co........................................ 27,351,521
39,400 Harrah's Entertainment, Inc........................... 613,163
67,475 Hasbro, Inc........................................... 2,365,842
49,400* King World Productions, Inc........................... 1,346,150
119,187 Mattel, Inc........................................... 4,119,401
220,200 Time Warner Inc....................................... 23,286,150
------------
59,082,227
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
FINANCE COMPANIES - 0.72%
148,200 Associates First Capital Corp......................... $ 11,541,075
223,065 Household International, Inc.......................... 8,727,418
96,350 SunAmerica, Inc....................................... 7,635,738
------------
27,904,231
------------
FINANCIAL SERVICES - 0.56%
180,400 American Express Co................................... 18,051,275
40,100 H & R Block Inc....................................... 1,801,994
39,800 Countrywide Credit Ind Inc............................ 1,970,100
------------
21,823,369
------------
FOODS - 1.95%
225,951 Archer Daniels Midland Co............................. 4,151,849
117,100 BestFoods............................................. 6,806,437
174,400 Campbell Soup Co...................................... 9,962,600
199,800 ConAgra, Inc.......................................... 6,281,212
62,300 General Mills, Inc.................................... 4,703,650
156,350 H J Heinz Co.......................................... 9,117,159
47,000 Hershey Foods Corp.................................... 3,160,750
162,800 Kellogg Co............................................ 5,962,550
79,380 Pioneer Hi-Bred Int'l, Inc............................ 2,376,439
60,900 Quaker Oats Co........................................ 3,737,738
142,800 Ralston Purina Co..................................... 4,971,225
182,600 Sara Lee Corp......................................... 10,659,275
42,500 Wm. Wrigley Jr. Co.................................... 3,745,313
------------
75,636,197
------------
FOOTWEAR - 0.08%
73,700 NIKE, Inc. Class B.................................... 2,948,000
18,900* Reebok International Ltd.............................. 301,219
------------
3,249,219
------------
FREIGHT - 0.13%
60,560* FDX Corp.............................................. 3,928,830
37,200 Ryder System, Inc..................................... 1,062,525
------------
4,991,355
------------
FUNERAL SERVICES - 0.08%
83,800 Service Corp. International........................... 3,132,025
------------
GOLD MINING - 0.14%
151,700 Barrick Gold Corp..................................... 3,034,000
52,100 Battle Mountain Gold Co............................... 244,218
86,400 Homestake Mining Co................................... 928,800
</TABLE>
<PAGE> 8
================================================================================
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
6 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
GOLD MINING - 0.14% - Continued
93,800 Placer Dome Inc....................................... $ 1,365,963
------------
5,572,981
------------
GOVERNMENT SPONSORED - 1.32%
272,600 Federal Home Loan Mortg. Corp......................... 16,492,300
433,700 Federal National Mortgage Asso........................ 31,551,675
67,800 SLM Holding Corp...................................... 2,983,200
------------
51,027,175
------------
HARDWARE & TOOLS - 0.10%
40,100 Black & Decker Corp................................... 2,172,918
11,550 Snap-on Inc........................................... 392,700
42,600 Stanley Works......................................... 1,301,963
------------
3,867,581
------------
HEALTHCARE - 0.52%
89,700 Cardinal Health, Inc.................................. 6,155,662
58,500* HCR Manor Care Inc.................................... 1,857,375
180,800* HealthSouth Corp...................................... 2,429,500
65,300* Humana Inc............................................ 1,293,756
68,600 IMS Helath Inc........................................ 4,553,325
87,500 United HealthCare Corp................................ 3,948,438
------------
20,238,056
------------
HEAVY DUTY TRUCKS/PARTS - 0.19%
17,300 Cummins Engine Co., Inc............................... 642,262
52,988 Dana Corp............................................. 2,066,532
37,800 Eaton Corp............................................ 2,582,213
20,110* Navistar International Corp........................... 520,346
35,710 PACCAR Inc............................................ 1,624,805
------------
7,436,158
------------
HOME BUILDERS - 0.05%
30,300 Centex Corp........................................... 1,081,331
14,456 Kaufman & Broad Home Corp............................. 364,110
15,800 Pulte Corp............................................ 401,913
------------
1,847,354
------------
HOSPITAL MANAGEMENT - 0.26%
250,484 Columbia/HCA Healthcare Corp.......................... 6,168,168
13,100 Shared Med Systems Corp............................... 686,113
105,200* Tenet Healthcare Corp................................. 3,109,975
------------
9,964,256
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
HOSPITAL SUPPLIES - 2.92%
631,000 Abbott Laboratories................................... $ 30,288,000
8,400 Bard (C. R.), Inc..................................... 384,825
117,800 Baxter International Inc.............................. 7,487,662
117,300 Becton, Dickinson and Co.............................. 4,985,250
64,100 Biomet, Inc........................................... 2,451,825
140,954* Boston Scientific Corp................................ 6,977,223
550,400 Johnson & Johnson..................................... 44,720,000
30,000 Mallinckrodt, Inc..................................... 969,375
200,900 Medtronic, Inc........................................ 13,598,419
37,833* St Jude Medical, Inc.................................. 1,099,522
------------
112,962,101
------------
HOUSEHOLD PRODUCTS - 2.65%
43,200 Clorox Co............................................. 4,797,900
127,300 Colgate-Palmolive Co.................................. 10,900,062
173,100 Minnesota Mining & Mfg. Co............................ 13,902,093
59,000 Newell Co............................................. 2,610,750
537,852 Procter & Gamble Co................................... 47,129,282
68,600 Rubbermaid, Inc....................................... 2,268,088
35,300 Tupperware Corp....................................... 615,544
260,800 Unilever N V - ADR.................................... 20,163,100
------------
102,386,819
------------
INFORMATION PROCESSING - 0.18%
189,800 HBO & Co.............................................. 4,733,138
136,200* Parametric Technology Corp............................ 2,315,400
------------
7,048,538
------------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 3.73%
87,300* BMC Software, Inc..................................... 4,457,756
1,015,700* Microsoft Corp........................................ 123,915,400
412,687* Oracle Corp........................................... 14,134,530
92,600* Peoplesoft Inc........................................ 1,904,088
------------
144,411,774
------------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 1.78%
61,400 Apple Computer, Inc................................... 1,960,962
685,049 Compaq Computer Corp.................................. 22,264,093
530,400* Dell Computer Corp.................................... 32,254,950
58,100* Silicon Graphics, Inc................................. 711,725
155,600 Sun Microsystems, Inc................................. 11,524,125
------------
68,715,855
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
INFORMATION PROCESSING -
COMPUTER SERVICES - 0.72%
132,800 Automatic Data Processing, Inc........................ $ 10,225,600
27,452* Ceridian Corp......................................... 1,786,095
196,400 Electronic Data Systems Corp. New..................... 7,659,600
182,654 First Data Corp....................................... 4,874,579
65,800 Paychex, Inc.......................................... 3,273,550
------------
27,819,424
------------
INFORMATION PROCESSING -
DATA SERVICES - 4.25%
1 A.C. Nielson.......................................... 27
38,200* Adobe Systems Inc..................................... 1,709,450
27,800 Autodesk, Inc......................................... 1,011,225
329,421* Cendant Corp.......................................... 6,258,999
211,230 Computer Associates Int'l............................. 9,346,927
52,800* Computer Sciences Corp................................ 3,016,200
213,500* E M C Corp............................................ 15,478,750
60,000* Gateway 2000, Inc..................................... 3,367,500
420,800 Hewlett Packard Co.................................... 26,405,200
51,400 Honeywell Inc......................................... 4,108,787
380,100 International Business Machine........................ 62,716,500
164,900* Novell, Inc .......................................... 2,731,156
112,900 Pitney Bowes Inc...................................... 6,322,400
116,400* Seagate Technology.................................... 3,433,800
104,100* Unisys Corp........................................... 2,966,850
142,300 Xerox Corp............................................ 15,297,250
------------
164,171,021
------------
INFORMATION PROCESSING -
NETWORKING - 1.54%
82,700* Ascend Communications Inc............................. 4,646,706
635,475* Cisco Systems, Inc.................................... 47,898,928
45,300* General Insturment Corp............................... 1,274,063
145,500* 3Com Corp............................................. 5,629,031
------------
59,448,728
------------
INSURANCE - CASUALTY - 0.37%
73,700 Chubb Corp............................................ 5,163,606
27,800 Progressive Corp...................................... 4,124,825
58,000 SAFECO Corp........................................... 2,490,375
74,842 St. Paul Companies, Inc............................... 2,638,181
------------
14,416,987
------------
</TABLE>
<PAGE> 9
================================================================================
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 7
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
INSURANCE - LIFE - 0.61%
71,892 Aetna Inc............................................. $ 5,558,150
165,188 Conseco Inc........................................... 5,471,853
66,112 Jefferson-Pilot Corp.................................. 4,512,144
43,900 Lincoln National Corp................................. 3,673,881
54,900 Torchmark Corp........................................ 2,086,200
21,209 Transamerica Corp..................................... 2,253,456
------------
23,555,684
------------
INSURANCE - MISCELLANEOUS - 0.44%
32,100 General Re Corp....................................... 7,495,350
57,100 MBIA, Inc............................................. 3,697,225
51,200 MGIC Investment Corp.................................. 2,249,600
67,400 UNUM Corp............................................. 3,631,175
------------
17,073,350
------------
INSURANCE - MULTILINE - 2.12%
367,640 Allstate Corp......................................... 14,981,329
422,440 American International Gp. Inc........................ 39,709,360
55,100 Aon Corp.............................................. 3,175,137
86,900 CIGNA Corp............................................ 6,761,906
54,000 Cincinnati Financial Corp............................. 2,109,375
115,000 Hartford Financial Svcs Group......................... 6,346,563
119,850 Marsh & McLennan Companies Inc........................ 6,973,772
54,100 Provident Companies Inc............................... 2,079,469
------------
82,136,911
------------
LEISURE TIME - 0.04%
17,900 Brunswick Corp........................................ 393,800
70,900* Mirage Resorts, Inc................................... 1,054,638
------------
1,448,438
------------
LODGING - 0.13%
108,800 Hilton Hotels Corp.................................... 2,366,400
94,000 Marriott International Inc............................ 2,761,250
------------
5,127,650
------------
MACHINE TOOLS - 0.01%
4,700 Milacron Inc.......................................... 95,175
------------
MACHINERY - AGRICULTURE - 0.12%
41,700 Case Corp............................................. 1,011,225
108,300 Deere & Co............................................ 3,783,731
------------
4,794,956
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.25%
153,000 Caterpillar Inc....................................... $ 7,563,937
31,900 Fluor Corp............................................ 1,365,719
29,000 Foster Wheeler Corp................................... 496,625
10,800 Harnischfeger Industries Inc.......................... 108,000
------------
9,534,281
------------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.51%
1,600 Aeroquip-Vickers, Inc................................. 58,200
14,600 Briggs & Stratton Corp................................ 736,387
42,700 Cooper Industries, Inc................................ 2,097,638
95,600 Dover Corp............................................ 3,405,750
89,400 Illinois Tool Works Inc............................... 5,682,488
67,700 Ingersoll-Rand Co..................................... 3,169,206
32,000 Johnson Controls, Inc................................. 1,852,000
59,533 Pall Corp............................................. 1,384,142
33,375 Parker Hannifin Corp.................................. 1,159,781
12,800 Timken Co............................................. 246,400
------------
19,791,992
------------
MEDICAL TECHNOLOGY - 0.15%
68,900 Guidant Corp.......................................... 5,912,481
------------
MERCHANDISE - DRUG - 0.59%
151,200 CVS Corp.............................................. 7,465,500
16,600 Longs Drug Stores Corp................................ 591,375
100,600 Rite Aid Corp......................................... 4,665,325
191,400 Walgreen Co........................................... 10,275,788
------------
22,997,988
------------
MERCHANDISE - SPECIALTY - 2.00%
41,000 American Greetings Corp. Class A...................... 1,734,812
40,900 Circuit City Stores, Inc.............................. 1,480,068
53,600* Consolidated Stores Corp.............................. 1,152,400
95,522* CostCo Companies, Inc................................. 5,994,005
71,500 Dollar General Corp................................... 1,702,594
74,400 Fortune Brands, Inc................................... 2,534,250
164,700 Gap, Inc.............................................. 12,115,744
608,400 Home Depot, Inc....................................... 30,267,900
89,900 Ikon Office Solutions Inc............................. 876,525
973 Jostens, Inc.......................................... 22,805
63,200* Kohl's Corp........................................... 3,108,650
84,773 Limited, Inc.......................................... 2,453,119
79,200 Nordstrom, Inc........................................ 2,950,200
113,000* Staples, Inc.......................................... 3,947,938
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
MERCHANDISE - SPECIALTY - Continued
108,000 TJX Companies, Inc.................................... $ 2,767,500
33,600 Tandy Corp............................................ 1,514,100
127,625* Toys "R" Us, Inc...................................... 2,520,594
------------
77,143,204
------------
MERCHANDISING - DEPARTMENT - 0.51%
179,800 Dayton Hudson Corp.................................... 8,091,000
48,600 Dillards, Inc. Class A................................ 1,670,625
92,300* Federated Dept Stores, Inc ........................... 3,847,756
99,800 May Department Stores Co.............................. 6,019,188
------------
19,628,569
------------
MERCHANDISING - FOOD - 0.85%
113,900 Albertsons, Inc....................................... 6,499,418
119,200 American Stores Co.................................... 4,000,650
15,300 Great Atlantic & Pacific Tea.......................... 417,881
98,300 Kroger Co............................................. 5,216,044
191,600* Safeway, Inc.......................................... 10,118,875
33,400 Supervalu Inc......................................... 862,138
143,800 SYSCO Corp............................................ 3,873,613
52,000 Winn-Dixie Stores, Inc................................ 2,096,250
------------
33,084,869
------------
MERCHANDISING - MASS - 2.31%
190,300* KMart Corp............................................ 2,902,075
59,600 Fred Meyer, Inc....................................... 3,032,150
119,400 J.C. Penney Co., Inc.................................. 6,567,000
163,300 Sears Roebuck and Co.................................. 7,746,544
35,000* Venator Group, Inc.................................... 275,625
914,100 Wal-Mart Stores, Inc.................................. 68,843,156
------------
89,366,550
------------
METALS - ALUMINUM - 0.25%
115,900 Alcan Aluminium Ltd................................... 3,085,838
67,200 Aluminum Co. of America............................... 4,981,200
33,100 Reynolds Metals Co.................................... 1,816,362
------------
9,883,400
------------
METALS - COPPER - 0.08%
19,300 ASARCO Inc............................................ 373,938
67,631 Newmont Mining Corp................................... 1,344,166
27,200 Phelps Dodge Corp..................................... 1,541,900
------------
3,260,004
------------
</TABLE>
<PAGE> 10
================================================================================
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
8 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
METALS - MISCELLANEOUS - 0.07%
31,350 Cyprus Amax Minerals Co............................... $ 356,606
57,075 Engelhard Corp........................................ 1,102,261
48,500* Freeport-McMoRan Copper &
Gold Class ......................................... 633,531
52,400 Inco Limited.......................................... 605,875
------------
2,698,273
------------
METALS - STEEL - 0.12%
59,525 Allegheny Teldyne Inc................................. 1,223,982
46,100* Bethlehem Steel Corp.................................. 380,325
31,100 Nucor Corp............................................ 1,306,200
48,920 USX-US Steel Group, Inc............................... 1,195,483
53,625 Worthington Industries, Inc........................... 653,555
------------
4,759,545
------------
MISCELLANEOUS - 0.16%
103,600 BB & T Corp........................................... 3,826,725
57,800 Equifax Inc........................................... 2,398,700
------------
6,225,425
------------
MOBILE HOMES - 0.01%
14,600 Fleetwood Enterprises, Inc............................ 491,838
------------
NATURAL GAS-DIVERSIFIED - 0.11%
87,800 Coastal Corp.......................................... 3,062,025
37,900 Sonat Inc............................................. 1,125,156
------------
4,187,181
------------
OIL - INTEGRATED DOMESTIC - 1.41%
35,700 Amerada Hess Corp..................................... 1,981,350
406,400 Amoco Corp............................................ 23,952,200
26,900 Ashland Oil, Inc...................................... 1,308,012
131,400 Atlantic Richfield Co................................. 8,738,100
74,967 Burlington Resources, Inc............................. 2,670,699
19,400 Kerr-McGee Corp....................................... 766,300
150,600 Occidental Petroleum Corp............................. 3,049,650
40,800* Oryx Energy Co........................................ 563,550
18,500 Pennzoil Co........................................... 686,812
96,300 Phillips Petroleum Co................................. 4,044,600
114,100 USX-Marathon Group.................................... 3,237,588
98,300 Unocal Corp........................................... 3,329,913
------------
54,328,774
------------
OIL - INTEGRATED INTERNATIONAL - 4.63%
268,200* Chevron Corp.......................................... 22,428,225
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
OIL - INTEGRATED INTERNATIONAL - Continued
991,500 Exxon Corp............................................ $ 74,424,469
320,500 Mobil Corp............................................ 27,623,094
884,900 Royal Dutch Pete Co. - ADR............................ 41,590,300
222,600 Texaco Inc............................................ 12,813,412
------------
178,879,500
------------
OIL - SERVICES - 0.50%
131,160 Baker Hughes Inc...................................... 2,401,868
200,500 Halliburton Co........................................ 5,889,688
34,300 McDermott International, Inc.......................... 919,669
35,500* Rowan Companies, Inc.................................. 348,343
217,400 Schlumberger Ltd...................................... 9,715,062
------------
19,274,630
------------
OIL/GAS PRODUCERS - 0.13%
50,600 Anadarko Petroleum Corp............................... 1,426,288
33,700 Apache Corp........................................... 775,100
6,000 Helmerich & Payne, Inc................................ 103,500
38,716 Sunoco Inc............................................ 1,311,504
113,842 Union Pacific Res. Group Inc.......................... 1,273,607
------------
4,889,999
------------
PAPER/FOREST PRODUCTS - 1.02%
54,200 Avery Dennison Corp................................... 2,598,212
10,566 Boise Cascade Corp.................................... 334,810
45,400 Champion International Corp........................... 1,886,937
96,600 Fort James Corp....................................... 3,779,475
39,200 Georgia-Pacific Corp.................................. 2,224,600
128,918 International Paper Co................................ 5,599,876
240,432 Kimberly-Clark Corp................................... 12,652,734
41,600 Louisiana Pacific Corp................................ 707,200
39,200 Mead Corp............................................. 1,188,250
4,900 Potlatch Corp......................................... 185,281
35,450 Union Camp Corp....................................... 2,293,172
26,850 Westvaco Corp......................................... 755,156
79,500 Weyerhaeuser Co....................................... 3,984,938
35,000 Willamette Industries, Inc............................ 1,222,813
------------
39,413,454
------------
PHOTOGRAPHY - 0.25%
130,750 Eastman Kodak Co...................................... 9,487,547
35,300 Polaroid Corp......................................... 750,125
------------
10,237,672
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----
<S> <C> <C>
POLLUTION CONTROL - 0.34%
83,300 Browning-Ferris Industries Inc........................ $ 2,457,350
97,400 Laidlaw Inc........................................... 967,913
224,150 Waste Management, Inc................................. 9,610,431
------------
13,035,694
------------
PUBLISHING - NEWS - 0.45%
35,600 Dow Jones & Co., Inc.................................. 1,702,125
116,400 Gannett Co., Inc...................................... 7,515,075
42,400 Knight-Ridder, Inc.................................... 2,180,950
77,200 New York Times Co. Class A............................ 2,398,025
24,232 Times Mirror Co....................................... 1,420,601
36,300 Tribune Co............................................ 2,327,738
------------
17,544,514
------------
PUBLISHING/PRINTING - 0.28%
50,800 Deluxe Corp........................................... 1,765,300
74,100 Dun & Bradstreet Corp New............................. 2,236,893
19,217 Harcourt General, Inc................................. 994,480
30,100 McGraw-Hill, Inc...................................... 2,693,950
21,600 Moore Corp. Ltd....................................... 236,250
71,800 R R Donnelley and Son................................. 3,047,013
------------
10,973,886
------------
RAILROAD - 0.57%
205,551 Burlington Northern Santa Fe.......................... 6,988,733
115,900 CSX Corp.............................................. 4,831,581
170,400 Norfolk Southern Corp................................. 5,175,900
103,600 Union Pacific Corp.................................... 5,037,550
------------
22,033,764
------------
RESTAURANTS - 0.64%
55,800 Darden Restaurants, Inc............................... 882,337
285,000 McDonald's Corp....................................... 19,967,813
72,620* Tricon Global Restaurants, Inc........................ 3,308,749
30,000 Wendy's International, Inc............................ 600,000
------------
24,758,899
------------
SAVINGS & LOAN - 0.30%
23,500 Golden West Financial Corp............................ 2,225,156
246,443 Washington Mutual, Inc................................ 9,549,666
------------
11,774,822
------------
SECURITIES RELATED - 1.07%
45,700 Bear Stearns Co. Inc.................................. 1,919,400
97,650 Charles Schwab Corp................................... 5,505,019
</TABLE>
<PAGE> 11
================================================================================
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 9
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
SECURITIES RELATED - Continued
95,500 Franklin Resources, Inc............................... $ 4,082,625
45,600 Lehman Brothers Hldings, Inc.......................... 2,277,150
134,900 Merrill Lynch & Co., Inc.............................. 10,117,500
249,201 Morgan Stanley, Dean Witter,
Discover and Co...................................... 17,381,771
------------
41,283,465
------------
SEMICONDUCTOR EQUIPMENT - 0.19%
158,000* Applied Materials, Inc................................ 6,122,500
35,600* KLA-Tencor Corp....................................... 1,212,625
------------
7,335,125
------------
SEMICONDUCTORS - 2.93%
58,600 Advanced Micro Devices, Inc........................... 1,622,487
683,300 Intel Corp............................................ 73,540,163
55,500* LSI Logic Corp........................................ 860,250
93,300* Micron Technology, Inc................................ 3,854,456
244,700 Motorola, Inc......................................... 15,171,400
95,800* National Semiconductor Corp........................... 1,377,125
95,400 Rockwell International Corp........................... 4,668,638
159,600 Texas Instruments Inc................................. 12,189,450
------------
113,283,969
------------
TELECOMMUNICATIONS - 3.37%
217,800* Airtouch Communications, Inc.......................... 12,455,437
96,500 ALLTEL Corp........................................... 5,114,500
32,335* Andrew Corp........................................... 517,360
54,300 Frontier Corp......................................... 1,635,788
32,800 Harris Corp........................................... 1,244,350
546,580 Lucent Technologies, Inc.............................. 47,040,041
734,612* MCI Worldcom Inc...................................... 43,342,079
89,900* Nextel Communications, Inc. Class A................... 1,932,850
257,040 Northern Telecom Ltd.................................. 12,000,555
29,500 Scientific-Atlanta, Inc............................... 571,563
80,100* Tellabs, Inc.......................................... 4,330,406
------------
130,184,929
------------
TEXTILE - PRODUCTS - 0.08%
26,100 Russell Corp.......................................... 621,506
48,800 V F Corp.............................................. 2,394,250
------------
3,015,756
------------
TOBACCO - 1.52%
994,200 Philip Morris Cos Inc................................. 55,613,063
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
TOBACCO - Continued
94,300 UST Inc............................................... $ 3,276,925
------------
58,889,988
------------
UTILITIES - COMMUNICATION - 5.63%
726,026 A T & T Corp.......................................... 45,240,495
461,500 Ameritech Corp........................................ 24,978,688
655,010 Bell Atlantic Corp.................................... 36,434,931
392,000 BellSouth Corp........................................ 34,202,000
413,000 GTE Corp.............................................. 25,606,000
797,758 SBC Communications, Inc............................... 38,242,524
140,800 Sprint Corp. FON Group................................ 10,243,200
176,000 Sprint Corp. PCS Group................................ 2,816,000
------------
217,763,838
------------
UTILITIES - ELECTRIC - 2.50%
71,700* AES Corp.............................................. 3,280,275
43,700 Ameren Corp........................................... 1,799,893
72,900 American Electric Power, Inc.......................... 3,380,738
35,200 Baltimore Gas and Electric Co......................... 1,080,200
60,100 Carolina Power & Light Co............................. 2,787,137
123,800 Central & South West Corp............................. 3,404,500
42,964 Cinergy Corp.......................................... 1,484,943
114,200 Consolidated Edison, Inc.............................. 5,802,787
42,300 DTE Energy Co......................................... 1,845,337
57,650 Dominion Resources, Inc............................... 2,662,709
154,451 Duke Energy Corp...................................... 9,662,841
170,200 Edison International.................................. 4,680,500
138,300 Entergy Corp.......................................... 4,053,919
87,100 FPL Group, Inc........................................ 5,334,875
80,700 FirstEnergy Corp...................................... 2,496,656
32,600 GPU Inc............................................... 1,428,288
116,279 Houston Industries, Inc............................... 3,677,323
44,900 New Century Energies, Inc............................. 2,158,006
37,500* Niagara Mohawk Power Corp............................. 576,563
52,000 Northern States Power Co.............................. 1,413,750
91,300 Peco Energy Co........................................ 3,663,413
161,800 P G & E Corp.......................................... 5,005,688
42,264 P P & L Resources Inc................................. 1,154,336
121,600 PacifiCorp............................................ 2,280,000
94,950 Public Serv Enterprise Group.......................... 3,703,050
279,700 Southern Co........................................... 8,251,150
142,220 Texas Utilities Co.................................... 6,337,679
83,800 Unicom Corp........................................... 3,158,213
------------
96,564,769
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -------------
<S> <C> <C>
UTILITIES - GAS, DISTRIBUTION - 0.03%
23,700 NICOR Inc............................................. $ 996,881
-------------
UTILITIES - GAS, PIPELINE - 0.54%
37,800 Columbia Energy Group................................. 2,145,150
44,100 Consolidated Natural Gas Co........................... 2,395,181
142,000 Enron Corp............................................ 7,463,875
18,300 ONEOK Inc............................................. 637,069
2,200 Peoples Energy Corp................................... 82,913
94,262 Sempra Energy......................................... 2,362,441
196,500 Williams Companies, Inc............................... 5,661,656
-------------
20,748,285
-------------
TOTAL COMMON STOCK
(Cost $1,821,768,439)................................. 3,835,442,745
-------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
- -----
<S> <C> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 0.67%
AUTO - CARS - 0.21%
$7,950,000 Hertz Corp.,
5.05% due 12/07/1998................................. 7,943,308
------------
FINANCE COMPANIES - 0.46%
11,652,000 Ford Credit Europe PLC,
4.94 12/01/1998...................................... 11,652,000
6,308,000 General Electric Cap Svcs Inc.,
4.95% due 12/03/1998................................. 6,306,264
------------
17,958,264
------------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $25,901,572).................................... 25,901,572
------------
UNITED STATES GOVERNMENT
SHORT TERM - 0.06%
U. S. TREASURY BILLS - 0.06%
2,475,000 United States Treasury Bills,
3.25% due 12/03/1998.................................. 2,463,794
------------
TOTAL UNITED STATES GOVERNMENT
SHORT TERM
(Cost $2,463,794)..................................... 2,463,794
------------
</TABLE>
<PAGE> 12
================================================================================
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
10 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
MARKET
VALUE
--------------
<S> <C>
TOTAL INVESTMENTS
(Cost $1,850,133,805) - 99.87%....................... $3,863,808,111
Other assets less liabilities,
net - 0.13%......................................... 4,870,753
--------------
NET ASSETS (equivalent
to $35.73 per share on
108,284,238 shares
outstanding) - 100%................................. $3,868,678,864
==============
* Non-income producing
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
--------- ------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/98)
81 (2) S&P 500 Index Futures
(December/$1,166.90)................................ $ 112,450
============
(1)U.S.Treasury Bills with a market value of
approximately $2,175,000 were maintained in a
segregated account with a portion placed as
collateral for futures contracts.
(2)Per 250
</TABLE>
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
108,284,238 shares outstanding................................ $ 1,082,842
Additional paid in capital..................................... 1,816,182,773
Accumulated net realized gain on securities.................... 37,099,937
Undistributed net investment income............................ 526,556
Unrealized appreciation of:
Investments........... $2,013,674,306
Futures .............. 112,450 2,013,786,756
-------------- ---------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING.................................................. $ 3,868,678,864
===============
</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, 1998
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends ........................................................ $ 26,050,437
Interest ......................................................... 686,813
------------
Total investment income ........................................ 26,737,250
------------
EXPENSES:
Advisory fees .................................................... 4,696,528
Custodian and accounting services ................................ 416,470
Reports to shareholders .......................................... 296,034
Audit fees and tax services ...................................... 64,696
Directors' fees and expenses ..................................... 48,092
Miscellaneous .................................................... 92,748
------------
Total expenses ................................................. 5,614,568
------------
NET INVESTMENT INCOME ............................................ 21,122,682
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain (loss) on:
Investments .................................... $ 22,720,875
Futures contracts .............................. (836,664) 21,884,211
------------
Net unrealized appreciation of securities during
the period:
Investments .................................... 226,993,838
Futures contracts .............................. 503,287 227,497,125
------------ ------------
Net realized and unrealized gain on securities
during the period ............................................. 249,381,336
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................. $270,504,018
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ........................................ $ 21,122,682 $ 39,567,862
Net realized gain on securities .............................. 21,884,211 16,742,928
Net unrealized appreciation of securities during the period... 227,497,125 713,815,081
--------------- ---------------
Increase in net assets resulting from operations ........... 270,504,018 770,125,871
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ........................................ (20,974,037) (39,570,522)
Net realized gain on securities .............................. _ (14,847,655)
--------------- ---------------
Decrease in net assets resulting from distributions
to shareholders ........................................... (20,974,037) (54,418,177)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ............................. 179,639,812 367,059,600
Proceeds from capital stock issued for distributions
reinvested ................................................. 20,974,037 54,418,177
--------------- ---------------
.............................................................. 200,613,849 421,477,777
Cost of capital stock repurchased ............................ (64,119,789) (98,730,173)
--------------- ---------------
Increase in net assets resulting from capital stock
transactions .............................................. 136,494,060 322,747,604
--------------- ---------------
TOTAL INCREASE IN NET ASSETS ................................. 386,024,041 1,038,455,298
NET ASSETS:
Beginning of period .......................................... 3,482,654,823 2,444,199,525
--------------- ---------------
End of period (including undistributed net investment income
of $526,556 and $377,911) .................................. $ 3,868,678,864 $ 3,482,654,823
=============== ===============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ................................. 5,303,538 12,118,343
Shares issued for distributions reinvested ................... 622,269 1,806,919
Shares of capital stock repurchased .......................... (1,975,116) (3,279,150)
--------------- ---------------
Increase in shares outstanding ............................. 3,950,691 10,646,112
Shares outstanding:
Beginning of period ........................................ 104,333,547 93,687,435
--------------- ---------------
End of period .............................................. 108,284,238 104,333,547
=============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 14
================================================================================
MIDCAP INDEX FUND - STATEMENT OF NET ASSETS
12 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS - 98.00%
ADVERTISING - 0.25%
53,000* Snyder Communications, Inc............................ $ 1,884,813
------------
AEROSPACE/DEFENSE - 1.01%
32,480 Gencorp Inc........................................... 799,820
49,100* SCI Systems, Inc...................................... 2,387,488
8,000* Sequa Corp. Class A................................... 509,000
51,674 Sunstrand Corp........................................ 2,790,396
30,320 Teleflex Inc.......................................... 1,288,600
------------
7,775,304
------------
AIRLINES - 0.22%
22,021* Alaska Air Group, Inc................................. 824,411
24,574 ASA Holdings, Inc..................................... 833,980
------------
1,658,391
------------
APPAREL & PRODUCTS - 1.55%
49,900* Abercrombie and Fitch Co.............................. 2,794,400
87,206 Cintas Corp........................................... 4,796,330
40,971 Claire's Stores, Inc.................................. 696,507
27,224* Land's End, Inc....................................... 614,241
41,500 Ross Stores, Inc...................................... 1,509,563
60,700 Warnaco Group Inc. Class A............................ 1,502,325
------------
11,913,366
------------
APPLIANCES/FURNISHINGS - 0.88%
44,959 Heilig-Meyers Co...................................... 314,713
37,801 Lancaster Colony Corp................................. 1,039,528
161,852 Leggett & Platt, Inc.................................. 3,672,017
80,156 Herman Miller, Inc.................................... 1,703,315
------------
6,729,573
------------
AUTO - CARS - 0.87%
135,040 Harley-Davidson, Inc.................................. 5,646,360
56,700 Meritor Automotive, Inc............................... 1,002,881
------------
6,649,241
------------
AUTO - ORIGINAL EQUIPMENT - 1.28%
20,125 Arvin Industries, Inc................................. 845,250
24,700 Carlisle Cos Inc...................................... 1,094,519
39,036 Donaldson Co., Inc.................................... 780,720
43,270 Federal-Mogul Corp.................................... 2,455,573
60,700* Lear Corp............................................. 2,344,538
50,245 Mark IV Industries, Inc............................... 847,884
24,928 Modine Manufacturing Co............................... 909,872
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
AUTO - ORIGINAL EQUIPMENT - Continued
23,200 Superior Industries International, Inc................ $ 603,200
------------
9,881,556
------------
AUTO - REPLACEMENT PARTS - 0.37%
31,642 Kaydon Corp........................................... 1,117,358
29,500* SPX Corp.............................................. 1,711,000
------------
2,828,358
------------
BANKS - OTHER - 0.70%
115,804 First Tennessee National Corp......................... 3,879,434
116,900 Sovereign Bancorp, Inc................................ 1,497,781
------------
5,377,215
------------
BANKS - REGIONAL - 6.49%
53,600 Associated Banc-Corp.................................. 1,829,100
33,700 CCB Financial Corp.................................... 1,828,225
38,455 City National Corp.................................... 1,437,256
98,572 Crestar Financial Corp................................ 6,542,717
153,511 First Security Corp................................... 3,089,409
41,762 First Virginia Banks, Inc............................. 1,874,070
84,700 GreenPoint Financial Corp............................. 3,223,894
122,700 Hibernia Corp. Class A................................ 2,070,562
86,948 Marshall & Ilsley Corp................................ 4,428,914
58,934 Mercantile Bankshares Corp............................ 2,070,057
132,550 North Fork Bancorporation Inc......................... 2,791,834
85,859 Old Kent Financial Corp............................... 3,691,937
65,968 Pacific Century Financial Corp........................ 1,410,066
35,000 Provident Financial Group............................. 1,417,500
138,930 SouthTrust Corp....................................... 5,105,677
79,800 TCF Financial Corp.................................... 1,930,163
28,178 Wilmington Trust Corp................................. 1,634,324
67,800 Zions Bancorporation.................................. 3,423,900
------------
49,799,605
------------
BROADCASTING - 0.56%
100,456 A.H. Belo Corp........................................ 1,896,107
26,592* Chris-Craft Industries, Inc........................... 1,229,880
40,632 TCA Cable TV, Inc..................................... 1,158,012
------------
4,283,999
------------
BUILDING MATERIALS - 1.64%
18,566 CalMat Co............................................. 570,905
36,800 Fastenal Co........................................... 1,518,000
49,050 Hon Industries Inc.................................... 1,164,938
43,600 Martin Marietta Materials............................. 2,114,600
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
BUILDING MATERIALS - Continued
80,556 RPM, Inc.............................................. $ 1,319,104
34,900 Southdown, Inc........................................ 2,032,925
30,500 Vulcan Materials Co................................... 3,823,938
------------
12,544,410
------------
CHEMICAL - MAJOR - 0.51%
36,345 Albemarle Corp........................................ 676,926
19,400 Borg-Warner Automotive, Inc........................... 967,575
99,500 Solutia Inc........................................... 2,226,312
------------
3,870,813
------------
CHEMICAL - MISCELLANEOUS - 1.71%
53,200 Airgas, Inc........................................... 538,650
63,437 Crompton & Knowles Corp............................... 1,229,092
36,000* Cytec Industries, Inc................................. 812,250
19,368 Dexter Corp........................................... 620,987
66,900 Ethyl Corp............................................ 388,856
36,170 Ferro Corp............................................ 1,010,499
11,264 H.B. Fuller Co........................................ 489,984
26,933 Georgia Gulf Corp..................................... 504,994
50,436 M.A. Hanna Co......................................... 709,256
31,393 Lawter International, Inc............................. 258,992
52,719 Lubrizol Corp......................................... 1,430,003
72,678 Lyondell Chemical Co.................................. 1,353,628
18,500 Minerals Technologies Inc............................. 811,688
5,955 NCH Corp.............................................. 333,480
40,442 Olin Corp............................................. 1,236,009
32,025 Rollins, Inc.......................................... 546,427
38,073 A. Schulman, Inc...................................... 813,810
------------
13,088,605
------------
CONGLOMERATES - 1.48%
39,698 Alexander & Baldwin, Inc.............................. 913,054
94,100 Dial Corp............................................. 2,470,125
40,300* Litton Industries, Inc................................ 2,465,856
7,900* MAXXAM, Inc........................................... 385,619
45,900 Ogden Corp............................................ 1,219,219
81,300 Viad Corp............................................. 1,895,306
87,600 Whitman Corp.......................................... 1,981,950
------------
11,331,129
------------
CONTAINERS - PAPER - 0.43%
17,414 Chesapeake Corp....................................... 604,048
</TABLE>
<PAGE> 15
================================================================================
MIDCAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 13
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
CONTAINERS - PAPER - Continued
88,979 Sonoco Products Co.................................... $ 2,663,809
------------
3,267,857
------------
DRUGS - 5.04%
25,000* Agouron Pharmaceuticals, Inc.......................... 1,090,625
45,280 Bergen Brunswig Corp. Class A......................... 2,818,680
64,252 Biogen, Inc........................................... 4,875,121
38,046 Carter-Wallace Inc.................................... 675,317
62,688* Centocor, Inc......................................... 2,538,864
147,280 Chiron Corp........................................... 3,332,210
53,425* Covance Inc........................................... 1,335,625
69,982* Forest Laboratories, Inc.............................. 3,262,911
71,042* Genzyme Corp.......................................... 2,988,204
7,680* Genzyme Corp.......................................... 26,879
57,700 ICN Pharmaceuticals, Inc.............................. 1,456,925
109,736* IVAX Corp............................................. 1,042,492
79,700 McKesson Corp......................................... 5,673,644
107,634* Mylan Laboratories Inc................................ 3,572,103
74,200* Watson Pharmaceuticals, Inc........................... 3,997,525
------------
38,687,125
------------
ELECTRIC PRODUCTS -
MISCELLANEOUS - 0.06%
26,716 CMP Group Inc......................................... 479,218
------------
ELECTRICAL EQUIPMENT - 1.99%
84,186* American Power Conversion............................. 3,483,196
29,031 AMETEK, Inc........................................... 602,393
93,600* FORE Systems, Inc..................................... 1,415,700
55,070 Hubbell Inc. Class B.................................. 2,220,009
129,657 Molex Inc............................................. 4,675,756
68,746* Teradyne, Inc......................................... 2,204,169
37,800* UCAR International, Inc............................... 687,487
------------
15,288,710
------------
ELECTRONIC INSTRUMENTS - 1.15%
80,552* Arrow Electronics, Inc................................ 1,752,006
33,250* Imation Corp.......................................... 540,313
66,400 Integrated Device Technology.......................... 390,100
25,621* MagnaTek, Inc......................................... 291,439
33,800 Pittston Brink's Group................................ 1,014,000
60,979* Sensormatic Electronics Corp.......................... 495,454
52,813 Symbol Technologies, Inc.............................. 2,574,634
24,616 Varian Associates, Inc................................ 973,871
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
ELECTRONIC INSTRUMENTS - Continued
55,513* Vishay Intertechnology, Inc........................... $ 787,591
------------
8,819,408
------------
ENTERTAINMENT - 0.11%
34,100* GTECH Holdings Corp................................... 854,631
------------
FERTILIZERS - 0.28%
92,946 IMC Global, Inc....................................... 2,126,140
------------
FINANCE COMPANIES - 0.68%
71,000 Finova Group, Inc..................................... 3,749,688
44,600 Keystone Financial, Inc............................... 1,443,925
------------
5,193,613
------------
FOODS - 3.16%
35,382 Dean Foods Co......................................... 1,609,881
49,209 Dole Food Co., Inc.................................... 1,556,235
27,036 Dreyer's Grand Ice Cream, Inc......................... 368,366
89,404 Flowers Industries, Inc............................... 2,039,529
62,500 Hormel Foods Corp..................................... 1,847,656
84,100 IBP, Inc.............................................. 2,134,037
15,012 International Multifoods Corp......................... 381,868
60,100 Interstate Bakeries Corp.............................. 1,577,625
32,971 Lance, Inc............................................ 649,117
68,778 McCormick & Co., Inc.................................. 2,295,466
22,871 J.M. Smucker Co. Class A.............................. 531,751
35,521 Trinity Industries, Inc............................... 1,374,219
192,486 Tyson Foods, Inc. Class A............................. 3,982,054
42,400* U. S. Foodservices.................................... 1,947,750
44,258 Universal Foods Corp.................................. 1,098,152
37,500* Vlasic Foods Int'l Inc................................ 810,937
------------
24,204,643
------------
FOOTWEAR - 0.27%
28,800* Nine West Group, Inc.................................. 360,000
34,500* Payless ShoeSource, Inc............................... 1,681,875
------------
2,041,875
------------
FREIGHT - 0.30%
47,846 Airborne Freight Corp................................. 1,276,890
29,300 J.B. Hunt Transport Services.......................... 556,700
30,271 Overseas Shipholding Group Inc........................ 478,660
------------
2,312,250
------------
FUNERAL SERVICES - 0.26%
90,400 Stewart Enterprises Inc............................... $ 2,017,050
------------
HEALTHCARE - 3.95%
98,800 Allegiance Corp....................................... 3,982,875
53,900* Apria Healthcare Group, Inc........................... 377,300
426* Coram Healthcare Corp................................. 799
52,372* First Health Group Corp............................... 834,679
99,649* Foundation Health Systems Class A..................... 1,376,402
208,200* Health Management Assoc............................... 4,515,337
53,500* Lincare Holdings Inc.................................. 1,845,750
49,391* NovaCare, Inc......................................... 154,347
79,300* Omnicare, Inc......................................... 2,269,962
66,300* Oxford Health Plans, Inc.............................. 733,444
40,574* PacifiCare Health System, Inc. Class B................ 3,055,730
67,400* Quintiles Transnational Corp.......................... 3,361,575
73,500* Quorum Health Group Inc............................... 1,221,937
55,000* Steris Corp........................................... 1,474,687
80,200* Sybron International Corp............................. 1,994,975
65,000* Total Renal Care Holdings............................. 1,726,563
36,300* Trigon Healthcare, Inc................................ 1,345,369
------------
30,271,731
------------
HEAVY DUTY TRUCKS/PARTS - 0.23%
18,600 Bandag, Inc........................................... 657,975
45,904 Federal Signal Corp................................... 1,121,779
------------
1,779,754
------------
HOME BUILDERS - 0.20%
97,425 Clayton Homes, Inc.................................... 1,510,088
------------
HOSPITAL MANAGEMENT - 0.18%
85,200* Beverly Enterprises, Inc.............................. 489,900
58,400* Concentra Managed Care, Inc........................... 689,850
64,600* Medaphis Corp......................................... 185,725
------------
1,365,475
------------
HOSPITAL SUPPLIES - 1.44%
29,835* Acuson Corp........................................... 417,690
27,533 Beckman Coulter Inc................................... 1,328,467
52,500 DENTSPLY International Inc............................ 1,410,937
56,400 Hillenbrand Industries, Inc........................... 3,204,225
63,800* PSS World Medical, Inc................................ 1,323,850
1* SonoSight, Inc........................................ 10
</TABLE>
<PAGE> 16
================================================================================
MIDCAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
14 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
HOSPITAL SUPPLIES - Continued
78,982 Stryker Corp.......................................... $ 3,336,990
------------
11,022,169
------------
HOUSEHOLD PRODUCTS - 0.95%
123,300* Bed Bath & Beyond, Inc................................ 3,845,419
16,014 Church & Dwight Co., Inc.............................. 553,484
32,446 First Brands Corp..................................... 1,214,697
50,800 Premark International Inc............................. 1,704,975
------------
7,318,575
------------
HUMAN RESOURCES - 1.02%
31,303 Kelly Services Inc. Class A........................... 909,743
66,400 Manpower Inc.......................................... 1,477,400
90,500* Modis Professional Services........................... 1,080,344
66,650 Olsten Corp........................................... 499,875
82,700* Robert Half International, Inc........................ 3,886,900
------------
7,854,262
------------
INFORMATION PROCESSING - 0.30%
40,400* Comverse Technology, Inc.............................. 2,323,000
------------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 0.69%
37,200* Citrix Systems, Inc................................... 3,087,600
149,700* Informix Corp......................................... 809,316
79,900* Platinum Technology, Inc.............................. 1,413,231
------------
5,310,147
------------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 1.00%
56,800* Lexmark Intl Group, Inc............................... 4,338,100
16,971 OEA, Inc.............................................. 221,684
140,492* Quantum Corp.......................................... 3,108,385
------------
7,668,169
------------
INFORMATION PROCESSING -
COMPUTER SERVICES - 5.18%
375,600* America Online, Inc................................... 32,888,475
54,000* Cambridge Technology Partner.......................... 1,127,250
82,852* Sterling Commerce Inc................................. 3,003,386
84,400* SunGard Data Systems, Inc............................. 2,700,800
------------
39,719,911
------------
INFORMATION PROCESSING -
CONSUMER SOFTWARE - 1.13%
49,500* Intuit................................................ $ 2,864,813
113,550* Networks Associates, Inc.............................. 5,776,856
------------
8,641,669
------------
INFORMATION PROCESSING -
DATA SERVICES - 6.31%
47,073 A.C. Nielson.......................................... 1,297,450
122,016 Comdisco, Inc......................................... 2,226,792
154,900* Compuware Corp........................................ 9,642,525
56,551 Diebold, Inc.......................................... 1,943,941
54,800* Electronic Arts....................................... 2,308,450
73,096* Fiserv, Inc........................................... 3,229,930
23,768* Information Resources, Inc............................ 199,057
57,600* Keane, Inc............................................ 1,656,000
53,407* Mentor Graphics Corp.................................. 460,635
90,073* NCR Corp.............................................. 3,355,219
62,400* NOVA Corp............................................. 1,985,100
30,036* Policy Management Systems............................. 1,535,590
71,808 Reynolds and Reynolds Co. Class A..................... 1,516,944
35,025* Sequent Computer Systems, Inc......................... 446,569
78,900* Siebel Systems, Inc................................... 1,913,325
100,300* Solectron Corp........................................ 6,638,606
70,800* Sterling Software, Inc................................ 1,823,100
87,780* Storage Technology Corp............................... 3,072,300
27,695 Structural Dynamic Research Corp...................... 482,931
46,212* Symantec Corp......................................... 924,240
43,800* Tech Data Corp........................................ 1,762,950
------------
48,421,654
------------
INSURANCE - CASUALTY - 0.25%
48,333 American Financial Group, Inc......................... 1,900,091
------------
INSURANCE - MISCELLANEOUS - 1.10%
63,700 AMBAC Financial Group Inc............................. 3,885,700
23,799 HSB Group Inc......................................... 984,684
47,700 Protective Life Corp.................................. 1,857,319
30,800 PMI Group Inc......................................... 1,684,375
------------
8,412,078
------------
INSURANCE - MULTILINE - 1.88%
225,250 AFLAC Inc............................................. 8,306,094
108,500 Old Republic International Corp....................... 2,312,406
81,300 Reliastar Financial Corp.............................. 3,821,100
------------
14,439,600
------------
LEISURE TIME - 0.53%
61,300 Callaway Golf Co...................................... $ 819,887
77,925* Circus Circus Enterprises............................. 901,008
100,402 International Game Technology......................... 2,315,521
------------
4,036,416
------------
LODGING - 0.31%
70,457* Promus Hotel Corp..................................... 2,351,503
------------
MACHINERY - AGRICULTURE - 0.05%
49,000 AGCO Corp............................................. 401,188
------------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.20%
22,456 Granite Construction, Inc............................. 725,610
21,268* Jacobs Engineering Group, Inc......................... 801,537
------------
1,527,147
------------
MACHINERY - INDUSTRIAL/SPECIALTY - 1.17%
24,818 Albany International Corp. Class A ................... 471,542
60,000* American Standard Companies........................... 2,055,000
29,822 Cordant Technologies Inc.............................. 1,198,472
38,218 Flowserve Corp........................................ 678,369
33,000 Newport News Shipbuilding............................. 928,125
16,514 Nordson Corp.......................................... 788,543
26,133 Stewart & Stevenson Services.......................... 259,697
17,900 Tecumseh Products Co. Class A......................... 886,050
55,292 Tidewater, Inc........................................ 1,275,172
22,224 Watts Industries, Inc. Class A........................ 420,867
------------
8,961,837
------------
MERCHANDISE - DRUG - 0.07%
63,000* Perrigo Co............................................ 527,625
------------
MERCHANDISE - SPECIALTY - 2.89%
30,686* BJ's Wholesale Club Inc............................... 1,183,329
56,200* Barnes & Noble, Inc................................... 1,861,625
84,500* Best Buy Co., Inc..................................... 4,869,313
74,900* CompUSA, Inc.......................................... 1,109,456
13,764 Enesco Group Inc...................................... 332,056
68,100* General Nutrition Cos., Inc........................... 1,208,775
29,500* Micro Warehouse, Inc.................................. 807,562
204,837* Office Depot, Inc..................................... 6,657,203
121,700* OfficeMax, Inc........................................ 1,293,063
45,311 Sotheby's Holdings, Inc. Class A...................... 1,268,708
34,236 Tiffany & Co.......................................... 1,495,685
</TABLE>
<PAGE> 17
================================================================================
MIDCAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 15
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
MERCHANDISE - SPECIALTY - Continued
19,515 US Office Products, Co................................ $ 107,333
------------
22,194,108
------------
MERCHANDISING - DEPARTMENT - 0.62%
63,600* Borders Group, Inc.................................... 1,542,300
117,004* Saks Holding, Inc..................................... 3,217,610
------------
4,759,910
------------
MERCHANDISING - FOOD - 0.31%
34,700 Hannaford Bros. Co.................................... 1,622,225
37,300 Ruddick Corp.......................................... 729,681
------------
2,351,906
------------
MERCHANDISING - MASS - 0.69%
54,200* Dollar Tree Stores Inc................................ 2,459,325
140,920 Family Dollar Stores, Inc............................. 2,827,208
------------
5,286,533
------------
METALS - MISCELLANEOUS - 0.19%
24,406 Kennametal, Inc....................................... 520,153
22,050 Precision Castparts Corp.............................. 974,334
------------
1,494,487
------------
METALS - STEEL - 0.52
49,000 AK Steel Holding Corp................................. 940,188
16,910 Carpenter Technology Corp............................. 597,134
9,257 Cleveland-Cliffs Inc.................................. 352,345
41,542 Harsco Corp........................................... 1,344,922
24,885 Inland Steel Industries, Inc.......................... 455,707
21,123 Oregon Steel Mills, Inc............................... 267,998
------------
3,958,294
------------
MISCELLANEOUS - 0.17%
64,100* Corrections Corp. of America.......................... 1,314,052
------------
MULTIMEDIA - 1.00%
177,656* Cadence Design Systems, Inc........................... 4,996,575
56,300* Synopsys Inc.......................................... 2,667,213
------------
7,663,788
------------
NATURAL GAS-DIVERSIFIED - 0.92%
103,600 El Paso Energy Corp................................... 3,535,350
41,500 K N Energy, Inc....................................... 1,815,625
67,486 Questar Corp.......................................... 1,294,888
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
NATURAL GAS-DIVERSIFIED - Continued
52,032* Seagull Energy Corp................................... $ 426,012
------------
7,071,875
------------
OIL - INTEGRATED DOMESTIC - 0.06%
32,214 Quaker State Corp..................................... 461,063
------------
OIL - INTEGRATED INTERNATIONAL - 0.19%
37,246 Murphy Oil Corp....................................... 1,485,184
------------
OIL - SERVICE - PRODUCTS - 0.55%
67,142 BJ Services Co........................................ 927,399
107,700* Noble Drilling Corp................................... 1,245,281
65,525* Parker Drilling Co.................................... 245,719
52,472* Varco International, Inc.............................. 357,465
79,667* Weatherford International Inc......................... 1,453,923
------------
4,229,787
------------
OIL - SERVICES - 1.18%
116,700 ENSCO International, Inc.............................. 1,115,944
140,415* Global Marine Inc..................................... 1,316,391
82,739* Nabors Industries, Inc................................ 1,096,292
40,346* Smith International, Inc.............................. 973,347
90,300 Transocean Offshore, Inc.............................. 2,229,281
47,146 Witco Corp............................................ 898,720
34,000 York International Corp............................... 1,428,000
------------
9,057,975
------------
OIL/GAS PRODUCERS - 1.10%
55,580 Cabot Corp............................................ 1,674,348
52,235 Noble Affiliates, Inc................................. 1,322,198
92,870* Ocean Energy, Inc..................................... 754,569
86,200 Pioneer Natural Resources Corp........................ 1,142,150
92,766* Ranger Oil Ltd........................................ 440,639
82,480 Ultramar Diamond Shamrock............................. 2,123,860
45,391 Valero Energy Corp.................................... 953,210
------------
8,410,974
------------
PAPER/FOREST PRODUCTS - 1.41%
48,939 Bowater Inc........................................... 1,933,091
73,670 Consolidated Papers, Inc.............................. 1,883,189
85,800 Georgia-Pacific Corp. Timber Group.................... 1,973,400
33,300 P. H. Glatfelter Co................................... 428,737
42,639 Longview Fibre Co..................................... 482,354
31,176 Pentair Inc........................................... 1,174,946
23,100 Rayonier Inc.......................................... 981,750
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- ------------
<S> <C> <C>
PAPER/FOREST PRODUCTS - Continued
23,370 Standard Register Co.................................. $ 687,954
57,116 Unisource Worldwide, Inc.............................. 449,789
48,861 Wausau-Mosinee Paper Corp............................. 824,530
------------
10,819,740
------------
POLLUTION CONTROL - 0.85%
149,100* Allied Waste Industries, Inc.......................... 3,037,912
33,033 Calgon Carbon Corp.................................... 239,489
147,212 US Filter Corp........................................ 3,257,066
------------
6,534,467
------------
PUBLISHING - NEWS - 0.86%
36,100 Lee Enterprises, Inc.................................. 1,010,800
22,168 Media General, Inc. Class A........................... 1,051,595
8,561 Washington Post Co. Class B........................... 4,556,057
------------
6,618,452
------------
PUBLISHING/PRINTING - 0.44%
24,486 Banta Corp............................................ 651,940
29,232 Houghton Mifflin Co................................... 1,224,091
13,300* Scholastic Corp....................................... 633,413
37,028 Wallace Computer Services, Inc........................ 830,817
------------
3,340,261
------------
RAILROAD - 0.90%
43,324 GATX Corp............................................. 1,638,189
105,696 Kansas City Southern Ind.............................. 4,511,898
41,800* Wisconsin Central Transport........................... 757,625
------------
6,907,712
------------
RESTAURANTS - 1.30%
36,633 Bob Evans Farms, Inc.................................. 886,061
53,855* Brinker International, Inc............................ 1,369,937
36,732* Buffets, Inc.......................................... 431,601
56,466 Cracker Barrel , Inc.................................. 1,312,835
33,100* Lone Star Steakhouse & Saloon......................... 252,388
46,600* Outback Steakhouse Inc................................ 1,654,300
16,888* Sbarro, Inc........................................... 439,088
78,800* Starbucks Corp........................................ 3,634,650
------------
9,980,860
------------
SAVINGS & LOAN - 0.90%
142,065 Charter One Financial, Inc............................ 4,217,555
</TABLE>
<PAGE> 18
================================================================================
MIDCAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
16 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----------
<S> <C> <C>
SAVINGS & LOAN - Continued
99,700 Dime Bancorp, Inc. ...................... $ 2,648,281
-----------
6,865,836
-----------
SECURITIES RELATED - 1.27%
115,514 A.G. Edwards, Inc. ...................... 4,259,579
133,300 Paine Webber Group Inc. ................. 5,448,637
-----------
9,708,216
-----------
SEMICONDUCTOR EQUIPMENT - 0.20%
43,400* Microchip Technology, Inc. .............. 1,510,863
-----------
SEMICONDUCTORS - 3.13%
81,040* Altera Corp. ............................ 3,976,025
133,238* Analog Devices, Inc. .................... 2,723,045
81,700* Atmel Corp. ............................. 990,613
36,788 Avnet, Inc. ............................. 2,140,602
56,136* Cirrus Logic, Inc. ...................... 691,175
87,982* Cypress Semiconductor Corp. ............. 896,317
68,054 Linear Technology Corp. ................. 4,768,033
116,500* Maxim Integrated Products ............... 4,572,625
64,681* Xilinx, Inc. ............................ 3,282,561
-----------
24,040,996
-----------
TELECOMMUNICATIONS - 1.19%
111,628* ADC Communications, Inc. ................ 3,334,886
48,242 COMSAT Corp. ............................ 1,718,621
61,500* QUALCOMM, Inc. .......................... 3,374,813
30,540 Vanguard Cellular Systems Class A ....... 702,420
-----------
9,130,740
-----------
TEXTILE - PRODUCTS - 0.98%
47,600 Burlington Industries, Inc. ............. 496,825
88,700* Jones Apparel Group, Inc. ............... 2,056,731
112,423 Shaw Industries Inc. .................... 2,276,566
52,229* Unifi, Inc. ............................. 1,005,408
24,984 Wellman, Inc. ........................... 302,931
47,000 WestPoint Stevens Inc. Class A .......... 1,410,000
-----------
7,548,461
-----------
TOBACCO - 0.13%
28,935 Universal Corp. ......................... 1,018,150
-----------
TRUCKERS - 0.23%
26,114 Arnold Industries, Inc. ................. 372,125
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----------
<S> <C> <C>
TRUCKERS - Continued
39,500 CNF Transportation, Inc. ................ $ 1,409,656
-----------
1,781,781
-----------
UTILITIES - COMMUNICATION - 1.43%
28,818 Aliant Communications, Inc. ............. 821,313
74,875 Century Telephone Enterprises ........... 4,267,875
111,600 Cincinnati Bell, Inc. ................... 3,515,400
12 SBC Communications, Inc. ................ 575
54,391 Telephone and Data Systems .............. 2,325,216
-----------
10,930,379
-----------
UTILITIES - ELECTRIC - 9.26%
111,514 Allegheny Energy, Inc. .................. 3,763,598
16,279 Black Hills Corp. ....................... 401,888
18,459 Cleco Corp. ............................. 631,067
91,164 CMS Energy Corp. ........................ 4,444,245
58,800* Calenergy, Inc. ......................... 1,841,175
87,838 Conectiv, Inc. .......................... 2,020,274
139,000 DPL Inc. ................................ 2,780,000
53,821 Energy East Corp. ....................... 2,855,877
89,062 Florida Progress Corp. .................. 3,807,400
24,166 Hawaiian Electric Industries ............ 940,964
30,823 Idacorp Inc. ............................ 1,074,952
58,800 Illinova Corp. .......................... 1,591,275
22,479 Indiana Energy, Inc. .................... 508,580
62,616 Interstate Energy Corp. ................. 1,901,961
39,464 IPALCO Enterprises, Inc. ................ 1,978,133
59,019 Kansas City Power & Light Co. ........... 1,752,126
117,642 LG&E Energy Corp. ....................... 3,293,976
76,334 MidAmerican Energy Holdings Co. ......... 1,984,684
33,818 Minnesota Power Inc. .................... 1,414,015
51,357 Montana Power Co. ....................... 2,603,158
102,144 NIPSCO Industries, Inc. ................. 2,994,096
37,633 Nevada Power Co. ........................ 891,432
52,617 New England Electrical System ........... 2,196,760
104,133* Northeast Utilities ..................... 1,640,095
66,192 OGE Energy Corp. ........................ 1,849,239
73,823 Pinnacle West Capital Corp. ............. 3,363,560
101,364 Potomac Electric Power Co. .............. 2,641,799
34,237 Public Service Co. of New Mexico ........ 665,482
69,062 Puget Sound Energy Inc. ................. 1,873,307
87,688 Scana Corp. ............................. 2,860,821
104,520 TECO Energy, Inc. ....................... 2,808,975
43,488 UtiliCorp United Inc. ................... 1,530,234
35,724 Washington Gas Light Co. ................ 910,962
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----------
<S> <C> <C>
UTILITIES - ELECTRIC - Continued
103,552 Wisconsin Energy Corp. .................. $ 3,203,640
------------
71,019,750
------------
UTILITIES - GAS, DISTRIBUTION-1.48%
45,536 AGL Resources, Inc. ..................... 981,870
140,805 Keyspan Energy Corp. .................... 4,180,148
72,468 MCN Energy Group Inc. ................... 1,372,364
31,178 National Fuel Gas Co. ................... 1,432,240
128,946 Tosco Corp. ............................. 3,368,713
------------
11,335,335
------------
WATER SERVICES - 0.26%
65,200 American Water Works Co., Inc. .......... 2,017,125
------------
TOTAL COMMON STOCKS
(Cost $582,878,594) ..................... 751,522,047
------------
</TABLE>
<TABLE>
PAR MARKET
VALUE VALUE
- ---------- -----------
<S> <C> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 2.12%
FINANCE COMPANIES - 1.46%
$2,600,000 Ford Motor Credit Co.,
5.05% due 12/02/98 ..................... 2,599,635
1,058,000 General Electric Capital Services, Inc.
4.95% due 12/03/98 ..................... 1,057,709
7,564,000 General Motors Acceptance Corp.,
4.86% due 12/01/98 ..................... 7,564,000
------------
11,221,344
------------
UTILITIES - ELECTRIC - 0.66%
5,076,000 Conagra.,
5.22% due 12/04/98 ..................... 5,073,792
------------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $16,295,136) ...................... 16,295,136
------------
UNITED STATES GOVERNMENT -
SHORT TERM - 0.11%
U. S. TREASURY BILLS - .011%
875,000 United States Treasury Bills,
4.20% due 12/31/98 ..................... 870,100
------------
</TABLE>
<PAGE> 19
================================================================================
MIDCAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1998 (Unaudited) 17
================================================================================
<TABLE>
PAR MARKET
VALUE VALUE
- ---------- -------------
<S> <C> <C>
TOTAL UNITED STATES GOVERNMENT
SHORT TERM
(Cost $870,100) ....................... $ 870,100
-------------
TOTAL INVESTMENTS
(Cost $600,043,830) - 100.23% ......... 768,687,283
Other assets less liabilities,
net - (0.23)% ........................ (1,690,783)
-------------
NET ASSETS (equivalent
to $24.79 per share on
30,941,583 shares
outstanding) - 100% .................. $ 766,996,500
=============
* Non-income producing
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS DEPRECIATION
- --------- -------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/98)
78 (2) S&P MidCap 400 Index Futures
(December/$354.70)..................... $ (139,545)
=============
(1)U.S.Treasury Bills with a market value of
approximately $750,000 were maintained in
a segregated account with a portion placed
as collateral for futures contracts
(2)Per 500
</TABLE>
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
30,941,583 shares outstanding ................... $ 309,416
Additional paid in capital ........................ 451,691,775
Accumulated net realized gain on securities ....... 146,455,252
Undistributed net investment income ............... 36,149
Unrealized appreciation (depreciation) of:
Investments .................. $ 168,643,453
Futures ...................... (139,545) 168,503,908
------------- -------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING ....... $ 766,996,500
=============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 20
================================================================================
MIDCAP INDEX FUND - FINANCIAL STATEMENTS (Unaudited)
18
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends ...................................................................... $ 4,633,094
Interest ....................................................................... 323,201
------------
Total investment income ...................................................... 4,956,295
------------
EXPENSES:
Advisory fees .................................................................. 1,181,632
Custodian and accounting services .............................................. 89,099
Reports to shareholders ........................................................ 59,692
Audit fees and tax services .................................................... 12,968
Directors' fees and expenses ................................................... 10,874
Miscellaneous .................................................................. 30,865
------------
Total expenses ............................................................... 1,385,130
------------
NET INVESTMENT INCOME .......................................................... 3,571,165
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain (loss) on:
Investments ..................................................... $ 80,067,104
Futures contracts ............................................... (1,347,612) 78,719,492
------------
Net unrealized depreciation during the period:
Investments ..................................................... (96,218,028)
Futures contracts ............................................... (98,820) (96,316,848)
------------ ------------
Net realized and unrealized loss on securities during the period ............ (17,597,356)
------------
DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................... $(14,026,191)
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30,1998 May 31, 1998
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ............................................. $ 3,571,165 $ 6,901,224
Net realized gain on securities ................................... 78,719,492 68,478,713
Net unrealized appreciation (depreciation) of securities
during the period ............................................ (96,316,848) 104,095,928
------------- -------------
Increase (decrease) in net assets resulting from operations ..... (14,026,191) 179,475,865
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................................. 3,577,363 (6,915,741)
Net realized gain on securities ................................... -- (39,892,715)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders .............................................. (3,577,363) (46,808,456)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold .................................. 17,273,125 54,227,081
Proceeds from capital stock issued for distributions reinvested ... 3,577,363 46,808,456
------------- -------------
20,850,488 101,035,537
Cost of capital stock repurchased ................................. (40,568,063) (36,446,663)
------------- -------------
Increase (decrease) in net assets resulting from
capital stock transactions ................................... (19,717,575) 64,588,874
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ........................... (37,321,129) 197,256,283
NET ASSETS:
Beginning of period ............................................... 804,317,629 607,061,346
------------- -------------
End of period (including undistributed net investment income
of $36,149 and $42,347) ...................................... $ 766,996,500 $ 804,317,629
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ...................................... 714,310 2,234,398
Shares issued for distributions reinvested ........................ 152,128 1,997,359
Shares of capital stock repurchased ............................... (1,754,748) (1,539,198)
------------- -------------
Increase (decrease) in shares outstanding ....................... (888,310) 2,692,559
Shares outstanding:
Beginning of period ............................................. 31,829,893 29,137,334
------------- -------------
End of period ................................................... 30,941,583 31,829,893
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 21
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS
NOVEMBER 30, 1998 (UNAUDITED) 19
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
COMMON STOCK - 97.72%
ADVERTISING - 0.60%
6,625* ADVO, Inc. ................................ $ 171,422
5,100* Catalina Marketing Corp. .................. 297,075
2,600* Doubleclick, Inc. ......................... 105,300
7,500* Getty Images, Inc. ........................ 129,375
300 Grey Advertising, Inc. .................... 108,000
4,525* HA-LO Industries, Inc. .................... 144,517
7,300* NFO Worldwide Inc. ........................ 92,163
1,700* TMP Worldwide Inc. ........................ 54,400
6,800* Westwood One, Inc. ........................ 180,200
----------
1,282,452
----------
AEROSPACE/DEFENSE - 0.55%
3,200* Alliant Techsystems, Inc. ................. 243,800
6,700* Aviall, Inc. .............................. 81,237
1,280* Banner Aerospace, Inc. .................... 11,360
6,600 BE Aerospace, Inc. ........................ 156,750
2,200 Cubic Corp. ............................... 45,100
4,393* Fairchild Corp. Class A ................... 70,562
8,400 Gencorp Inc. .............................. 206,850
2,500 HEICO Corp. ............................... 61,094
3,100* Moog Inc. ................................. 89,900
5,100* Remec, Inc. ............................... 70,763
1,600* Sequa Corp. Class A ....................... 101,800
6,100* Trimble Navigation Ltd. ................... 54,519
----------
1,193,735
----------
AIRLINES - 0.73%
10,600* Airtran Holdings Inc. ..................... 42,400
5,400* Alaska Air Group, Inc. .................... 202,162
11,600 American West Holdings Corp. ..............
Class B .................................. 163,850
2,300* Amtran Inc. ............................... 50,600
5,600 ASA Holdings, Inc. ........................ 190,050
3,400* Atlas Air, Inc. ........................... 157,250
3,300 Circle International Group, Inc. .......... 56,925
6,300 Expeditors International of WA ............ 242,550
10,900* Mesa Airlines, Inc. ....................... 87,200
1,050* Mesaba Holdings, Inc. ..................... 19,687
3,650 Midwest Express Holdings, Inc. ............ 101,288
6,300 SkyWest, Inc. ............................. 170,494
16,600 Transport World Airlines, Inc. ............ 84,038
----------
1,568,494
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
APPAREL & PRODUCTS - 1.35%
4,100* American Eagle Outfitters ................. $ 244,975
6,700* Ann Taylor Stores Corp. ................... 220,681
5,600 Authentic Fitness Corp. ................... 89,600
2,500* Brylane Inc. .............................. 39,688
2,900* Buckle, Inc. .............................. 74,313
11,925 Claire's Stores, Inc. ..................... 202,725
6,100* Dress Barn, Inc. .......................... 89,975
7,700* Footstar Inc. ............................. 187,687
2,900* Gadzooks, Inc. ............................ 21,387
3,200* Goodys Family Clothing Inc. ............... 36,000
10,200* Guess? Inc. ............................... 38,250
6,200* Gymboree Corp. ............................ 41,462
13,500* Hartmarx Corp. ............................ 79,313
5,000* Jo-ann Stores Inc. ........................ 78,750
5,450 Kellwood Co. .............................. 147,150
5,300* Land's End, Inc. .......................... 119,581
6,150* Mens Wearhouse, Inc. ...................... 155,672
8,900 Nautica Enterprises, Inc. ................. 175,219
4,900 Oakley Inc. ............................... 47,775
6,200 OshKosh B'Gosh, Inc. Class A .............. 148,800
900 Oxford Industries Inc. .................... 25,988
5,925* Pacific Sunwear of California ............. 87,764
6,000 Phillips-Van Heusen Corp. ................. 42,000
4,300 St. John Knits, Inc. ...................... 86,000
6,800* Stage Stores, Inc. ........................ 78,200
4,400 Talbots, Inc. ............................. 112,200
2,400 UniFirst Corp. ............................ 52,800
2,400* Urban Outfitters, Inc. .................... 33,900
4,800* Value City Dept. Stores Inc. .............. 49,200
3,700* Wet Seal, Inc. ............................ 102,675
----------
2,909,730
----------
APPLIANCES/FURNISHINGS - 0.87%
6,400 Aaron Rents, Inc. ......................... 100,000
3,850 Bassett Furniture Industries .............. 97,213
5,000* CORT Business Services Corp. .............. 113,438
8,797* Griffon Corp. ............................. 84,671
4,600 Haverty Furniture Cos, Inc. ............... 89,700
15,400 Heilig-Meyers Co. ......................... 107,800
5,800* Helen Of Troy, Ltd. ....................... 97,150
5,200 Hunt Corp. ................................ 71,175
11,500 Hussmann International, Inc. .............. 189,750
9,300 Kimball International, Inc. Class B ....... 179,025
12,000 La-Z-Boy Chair Co. ........................ 201,000
13,185* Metromedia International Group ............ 58,508
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
APPLIANCES/FURNISHINGS - Continued
3,800 National Presto Industries ................ $ 156,988
4,650 Oneida Ltd. ............................... 84,862
4,700* Renters Choice, Inc. ...................... 113,387
3,750* SLI, Inc. ................................. 82,500
6,500* Windmere Corp. ............................ 39,813
----------
1,866,980
----------
AUTO - CARS - 0.15%
8,800* Avis Rent A Car Inc. ...................... 185,350
6,500* Budget Group, Inc. ........................ 81,250
4,000* United Auto Group, Inc. ................... 53,750
----------
320,350
----------
AUTO - ORIGINAL EQUIPMENT - 0.77%
7,100* Allen Telecom, Inc. ....................... 49,256
5,900 Arvin Industries, Inc. .................... 247,800
6,800* Breed Technologies, Inc. .................. 45,900
10,200 Donaldson Co., Inc. ....................... 204,000
6,200* Hayes Lemmerz International, Inc. ......... 195,300
13,300 Mark IV Industries, Inc. .................. 224,438
14,550* Miller Industries, Inc. ................... 70,022
5,700 Modine Manufacturing Co. .................. 208,050
5,300 Superior Industries International, Inc..... 137,800
11,800* Tower Automotive, Inc. .................... 268,450
----------
1,651,016
----------
AUTO - REPLACEMENT PARTS - 0.91%
5,100 A.O. Smith Corp. .......................... 126,863
5,100* Aftermarket Technology Corp. .............. 29,325
15,100* Collins & Aikman Corp. .................... 80,219
3,800* CSK Auto Corp. ............................ 105,925
3,900* Discount Auto Parts, Inc. ................. 97,256
5,400 Furon Co. ................................. 92,813
8,500 Kaydon Corp. .............................. 300,156
3,300 Midas Inc. ................................ 102,919
6,957 Myers Industries, Inc. .................... 156,532
2,200* O'Reilly Automotive, Inc. ................. 99,825
5,350 Simpson Industries, Inc. .................. 56,175
6,400* SPX Corp. ................................. 371,200
4,700 Standard Motor Products, Inc. ............. 107,218
4,450 Standard Products Co. Class A ............. 82,881
6,468 Wynn's International, Inc. ................ 143,509
----------
1,952,816
----------
</TABLE>
<PAGE> 22
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
20 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
BANKS - OTHER - 0.55%
600 Alabama National Bancorp .................. $ 15,600
10,400 First Bancorp/Puerto Rico ................. 284,700
5,400 First Merchants Corp. ..................... 153,900
3,000 Irwin Financial Corp. ..................... 85,875
11,200 Republic Security Financial Co. ........... 125,300
200 Signal Corp. .............................. 6,850
9,965 Sky Financial Group Inc. .................. 302,683
2,100* Sterling Bancshares, Inc. ................. 33,338
12,000 Westernbank Puerto Rico ................... 159,000
----------
1,167,246
----------
BANKS - REGIONAL - 6.77%
7,350 AMCORE Financial, Inc. .................... 173,184
7,700 Anchor BanCorp Wisconsin, Inc. ............ 154,963
2,400 BancFirst Corp. ........................... 97,800
10,400 BancorpSouth, Inc. ........................ 198,900
3,800 Bancwest Corp. ............................ 164,350
3,700 Bank Atlantic Bancorp Class B ............. 29,600
2,931 Bank of Granite Corp. ..................... 83,534
6,100 Banknorth Group, Inc. ..................... 203,588
1,243* BOK Financial Corp. ....................... 59,052
400 BT Financial Corp. ........................ 11,200
3,150 Capital City Bank Group, Inc. ............. 92,138
1,700 Carolina First Corp. ...................... 42,394
3,200 Cathay Bancorp Inc. ....................... 121,000
4,110 Chemical Financial Corp. .................. 174,675
6,350 Citizens Banking Corp. .................... 205,184
6,587 CNB Bancshares, Inc. ...................... 285,711
7,261 Commerce Bancorp, Inc. .................... 346,713
17,044 Commercial Federal Corp. .................. 390,947
7,900 Commonwealth Bancorp, Inc. ................ 120,475
15,000 Community First Bankshares ................ 319,688
1,960 Community Trust Bancorp ................... 45,080
3,750 Corus Bankshares, Inc. .................... 136,172
5,740 Cullen/Frost Bankers, Inc. ................ 307,808
2,860 F & M Bancorporation, Inc. ................ 90,805
8,142 F & M National Corp. ...................... 245,278
2,800 Farmers Capital Bank Corp. ................ 98,350
1 Fifth Third Bancorp ....................... 50
14,358 First American Financial Corp.
Class A .................................. 439,714
1,850 First Citizens BancShares, Inc.
Class A .................................. 158,175
4,900 First Commerce Bancshares, Inc.
Class B .................................. 142,100
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
BANKS - REGIONAL - Continued
5,600 First Commonwealth Financial .............. $ 137,200
7,744 First Financial Bancorp ................... 259,908
2,200 First Financial Bankshares ................ 81,400
2,931 First Financial Corp. ..................... 130,430
8,168 First Midwest Bancorp, Inc. ............... 318,041
4,800 First Source Corp. ........................ 156,000
2,900 First United Bancshares ................... 57,275
5,208 First Western Bancorp, Inc. ............... 164,052
5,410 FNB Corp. ................................. 152,833
8,700* Friedman Billings Ramsey Class A .......... 52,200
1,100* Frontier Financial Corp. .................. 53,350
5,900 GBC Bancorp ............................... 146,763
5,700 Harbor Florida Bancshares ................. 61,988
2,546 Harleysville National Corp. ............... 93,566
4,500 Harris Financial, Inc. .................... 65,812
800 Horizon Bancorp, Inc. ..................... 29,600
5,998 HUBCO, Inc. ............................... 161,946
10,339* Imperial Bancorp .......................... 160,255
21,500 Independence Community Bank ............... 303,687
1,700 International Bancshares Corp. ............ 91,800
2,100 InterWest Bancorp, Inc. ................... 50,663
3,166 JeffBanks, Inc. ........................... 71,630
6,996 KeyCorp ................................... 214,690
3,400 MainStreet Financial Corp. ................ 146,200
2,400 Mississippi Valley Bancshares, Inc. ....... 87,900
6,195 N B T Bancorp, Inc. ....................... 155,649
6,500 National Bancorp of Alaska ................ 201,500
4,553 National City Bancshares, Inc. ............ 173,006
3,276 National Penn Bancshares, Inc. ............ 106,674
6,200 Ocean Financial Corp. ..................... 98,037
6,846 Old National Bancorp Indiana .............. 355,992
2,400 Omega Financial Corp. ..................... 71,850
8,458 One Valley Bancorp of West Va ............. 278,585
2,900 Park National Corp. ....................... 278,400
6,700 Peoples Bancorp, Inc. ..................... 67,000
6,300* PFF Bancorp, Inc. ......................... 96,862
2,400 Premier Bancshares, Inc. .................. 56,100
6,000 Prime Bancorp ............................. 114,000
3,100* Republic Bancshares, Inc. ................. 54,831
6,200 Riggs National Corp. ...................... 130,200
10,800 Roslyn Bancorp, Inc. ...................... 201,150
7,380 S&T Bancorp, Inc. ......................... 196,493
1,800 Santa Barbara Bancorp ..................... 45,000
4,900* Silicon Valley Bancshares ................. 122,500
9,200* Southwest Bancorporation of TX ............ 165,600
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
BANKS - REGIONAL - Continued
11,950 St. Paul Bancorp, Inc. .................... $ 252,444
3,100 Sterling Financial Corp. .................. 127,875
8,718 Susquehanna Bancshares, Inc. .............. 193,975
5,400 Texas Regional Bancshares Class A ......... 147,825
4,950 Triangle Bancorp, Inc. .................... 94,978
6,700 Trust Co. of New Jersey ................... 160,800
6,890 TrustCo Bank Corp. NY ..................... 192,920
4,200 U.S.B. Holding Co., Inc. .................. 67,200
3,792 UMB Financial Corp. ....................... 167,796
9,700 United Bankshares Inc. WV ................. 277,056
3,600 USBANCORP, Inc. ........................... 70,875
13,100 UST Corp. ................................. 324,225
6,300 Vermont Financial Services ................ 148,050
8,600 Webster Financial Corp. ................... 238,650
12,361 Westamerica Bankcorporation ............... 446,541
6,794 Westcorp .................................. 58,173
2,900 Western Bancorp ........................... 94,612
7,200 Whitney Holding Corp. ..................... 266,400
-----------
14,487,641
-----------
BEVERAGE - BREWERS/DISTRIBUTORS - 0.44%
9,100 Adolph Coors Class B ...................... 452,725
3,900 Beringer Wine Estates-B ................... 142,838
3,700* Boston Beer, Inc. Class A ................. 31,450
5,000* Canandaigua Brands, Inc. Class A .......... 248,750
2,000 Robert Mondavi Corp. Class A .............. 73,250
-----------
949,013
-----------
BEVERAGE - SOFT DRINKS - 0.03%
1,400 Coca-Cola Bottling Co. .................... 81,288
-----------
BROADCASTING - 0.77%
3,900 Ackerley Group, Inc. ...................... 69,469
4,100 Adelphia Communications Corp. .............
Class A .................................. 143,244
7,900 American Mobile Satellite Corp. ........... 36,538
8,800* ANTEC Corp. ............................... 162,800
2,000* CD Radio Inc. ............................. 76,750
11,100* Century Communications Corp. ..............
Class A .................................. 271,256
1,500* Cox Radio, Inc. Class A ................... 57,281
3,100* Emmis Communications Corp. ................
Class A .................................. 106,756
2,300* Jones Intercable, Inc. .................... 71,444
2,500 Paxson Communications Corp. ............... 18,125
</TABLE>
<PAGE> 23
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 21
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
BROADCASTING - Continued
13,200* United International Holdings
Class A .................................... $ 222,750
1,800 United Television, Inc. ..................... 198,000
12,100 US Satellite Broadcasting, Inc. .............
Class A .................................... 93,775
3,600* Young Broadcasting Inc. Class A ............. 128,250
----------
1,656,438
----------
BUILDING MATERIALS - 0.93%
1,100 Ameron, Inc. ................................ 40,425
7,200 Apogee Enterprises, Inc. .................... 89,100
1,650 Butler Manufacturing Co. .................... 38,363
5,200 CalMat Co. .................................. 159,900
3,000 Centex Construction Production .............. 106,500
9,500* Comfort Systems USA, Inc. ................... 178,125
3,400* Cooper Companies, Inc. ...................... 72,250
12,800* Dal-Tile International, Inc. ................ 110,400
3,450 Elcor Corp. ................................. 106,519
13,700 Fedders USA Inc. ............................ 76,206
3,400 Florida Rock Industries, Inc. ............... 99,663
2,800* Giant Cement Holding, Inc. .................. 67,200
11,900 Interface, Inc. Class A ..................... 148,750
2,700 Lone Star Industries, Inc. .................. 204,356
6,000* NCI Building Systems, Inc. .................. 147,000
1,100 Puerto Rican Cement Co., Inc. ............... 40,700
5,500 Texas Industries, Inc. ...................... 159,156
8,400 Watsco, Inc. ................................ 150,675
----------
1,995,288
----------
CHEMICAL - MAJOR - 0.38%
5,600 Albemarle Corp. ............................. 104,300
4,400* Borg-Warner Automotive, Inc. ................ 219,450
5,000 Chemed Corp. ................................ 169,375
6,009 Hexcel Corp. ................................ 55,208
6,900* Polymer Group, Inc. ......................... 73,312
4,500* Synetic, Inc. ............................... 190,688
----------
812,333
----------
CHEMICAL - MISCELLANEOUS - 1.82%
9,400 A. Schulman, Inc. ........................... 200,925
8,300* Agribiotech, Inc. ........................... 107,900
12,400* Airgas, Inc. ................................ 125,550
5,450 Brady Corp. ................................. 140,338
8,300 Cambrex Corp. ............................... 232,400
7,900 ChemFirst, Inc. ............................. 149,113
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
CHEMICAL - MISCELLANEOUS - Continued
5,900 Dexter Corp. ................................ $ 189,169
6,400 Ethyl Corp. ................................. 37,200
9,600 Ferro Corp. ................................. 268,200
9,300* Fisher Scientific International, Inc. ....... 172,050
4,500 Foamex International, Inc. .................. 51,469
4,500 General Chemical Group, Inc. ................ 76,500
5,900 Geon, Co. ................................... 131,275
8,100 Georgia Gulf Corp. .......................... 151,875
4,600 H.B. Fuller Co. ............................. 200,100
9,800 Lawter International, Inc. .................. 80,850
4,950 LeaRonal, Inc. .............................. 111,994
11,500 M.A. Hanna Co. .............................. 161,719
2,900 MacDermid, Inc. ............................. 106,937
1,900* McWhorter Technologies, Inc. ................ 44,887
5,200 Minerals Technologies Inc. .................. 228,150
1,200 NCH Corp. ................................... 67,200
5,600 NL Industries, Inc. ......................... 74,550
5,800 OM Group, Inc. .............................. 209,887
8,500 Rollins, Inc. ............................... 145,031
2,000 Stepan Co. .................................. 55,875
3,400* TETRA Technologies, Inc. .................... 42,925
5,550* VWR Scientific Products Corp. ............... 173,437
4,900 WD-40 Co. ................................... 151,900
----------
3,889,406
----------
COAL - 0.07%
1,634 NACCO Industries, Inc. Class A .............. 142,260
----------
CONGLOMERATES - 0.17%
7,400 Alexander & Baldwin, Inc. ................... 170,200
2,100* MAXXAM, Inc. ................................ 102,506
3,600* PEC Israel Economic Corp. ................... 86,625
----------
359,331
----------
CONSUMER FINANCE - 0.77%
15,400* AmeriCredit Corp. ........................... 212,712
14,300* Arcadia Financial Ltd. ...................... 50,943
6,875 Chittenden Corp. ............................ 207,969
10,600 Eaton Vance Corp. ........................... 257,712
1,250 Fund American Enterprises ................... 177,188
11,100* IMC Mortgage Co. ............................ 6,938
5,797 Metris Companies Inc. ....................... 193,475
4,300* SEI Investments Co. ......................... 396,675
5,350 WesBanco, Inc. .............................. 147,125
----------
1,650,737
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
CONTAINERS - METAL/GLASS - 0.47%
8,000 AptarGroup, Inc. ............................ $ 223,500
7,900 Ball Corp. .................................. 337,725
6,450 CLARCOR, Inc. ............................... 121,341
1,800* CSS Industries, Inc. ........................ 53,212
5,000 Greif Brothers Corp. Class A ................ 161,250
4,000* Silgan Holdings, Inc. ....................... 110,000
----------
1,007,028
----------
CONTAINERS - PAPER - 0.26%
4,900 Chesapeake Corp. ............................ 169,969
13,000* Gaylord Container Corp. Class A ............. 68,250
3,000* Ivex Packaging Corp. ........................ 58,500
7,390 Rock-Tenn Co. Class A ....................... 120,549
9,000* Shorewood Packaging Corp. ................... 133,313
----------
550,581
----------
COSMETICS/TOILETRIES - 0.07%
9,400* Playtex Products, Inc. ...................... 145,700
----------
DRUGS - 3.35%
4,500 A.L. Pharma Inc. Class A .................... 162,000
8,800* Agouron Pharmaceuticals, Inc. ............... 383,900
2,600* Algos Pharmaceuticals Corp. ................. 70,525
6,100* Alkermes, Inc. .............................. 112,088
6,200* AmeriSource Health Corp. Class A ............ 396,800
2,300* Barr Laboratories, Inc. ..................... 97,175
4,100 Bindley Western Industries .................. 158,363
6,900 Carter-Wallace Inc. ......................... 122,475
7,900* Cephalon, Inc. .............................. 58,756
10,900* Columbia Laboratories, Inc. ................. 40,875
7,900* COR Therapeutics, Inc. ...................... 92,825
4,000* Coulter Pharmaceutical, Inc. ................ 113,500
17,000* Covance Inc. ................................ 425,000
10,200* Dura Pharmaceuticals, Inc. .................. 131,963
7,200* Fuisz Technologies, Ltd. .................... 87,300
4,500* GelTex Pharmaceuticals, Inc. ................ 107,438
28,800* Gensia, Inc. ................................ 133,200
5,700* Guilford Pharmaceuticals, Inc. .............. 80,513
3,000 Herbalife International, Inc. Class A ....... 35,438
5,600* Human Genome Sciences, Inc. ................. 175,000
10,100* ICOS Corp. .................................. 219,044
4,400* IDEC Pharmaceuticals Corp. .................. 147,950
7,800* Immune Response Corp. ....................... 101,400
6,900* Incyte Pharmaceuticals, Inc. ................ 215,625
4,100* Inhale Therapeutic Systems Inc. ............. 132,738
</TABLE>
<PAGE> 24
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
22 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
DRUGS - Continued
21,700* IVAX Corp. .................................. $ 206,150
5,900 Jones Pharma Inc. ........................... 212,400
3,150 Life Technologies, Inc. ..................... 116,944
12,458* Ligand Pharmaceuticals, Inc. Class B ........ 123,801
4,800* Medicis Pharmaceutical Class A .............. 302,400
9,700* Millennium Pharmaceuticals .................. 197,637
2,200* Miravant Medical Technologies ............... 33,550
3,830* Natures Sunshine Products, Inc. ............. 59,843
4,900* Neurogen Corp. .............................. 84,218
7,600* NeXstar Pharmaceuticals, Inc. ............... 76,000
7,100* Parexel International Corp. ................. 185,043
5,300* Pathogenesis Corp. .......................... 254,400
11,100* P-Com, Inc. ................................. 41,278
6,600* Regeneron Pharmaceuticals Inc. .............. 54,450
5,300* Roberts Pharmaceutical Corp. ................ 129,850
5,200* SangStat Medical Corp. ...................... 124,800
2,400* Schein Pharmaceutical, Inc. ................. 32,100
7,900* Sepracor Inc. ............................... 655,700
11,200* SEQUUS Pharmaceuticals, Inc. ................ 221,200
6,500* Vertex Pharmaceuticals Inc. ................. 153,968
8,800* Vivus Inc. .................................. 26,675
4,100* Zonagen, Inc. ............................... 78,925
----------
7,173,223
----------
ELECTRIC PRODUCTS -
MISCELLANEOUS - 0.23%
8,500 CMP Group Inc. .............................. 152,469
5,900* Jabil Circut, Inc. .......................... 342,200
----------
494,669
----------
ELECTRICAL EQUIPMENT- 1.58%
1,900* Advanced Lighting Technologies .............. 16,625
8,500 AMETEK, Inc. ................................ 176,375
14,700* AMKOR Technologies, Inc. .................... 92,794
4,000* Amphenol Corp. Class A ...................... 131,250
5,557* BancTec, Inc. ............................... 73,283
6,700 Belden, Inc. ................................ 113,063
1,500* C & D Technologies, Inc. .................... 43,500
9,300* Cable Design Technologies ................... 171,469
4,300* California Microwave, Inc. .................. 52,138
3,500* Dbt Online, Inc. ............................ 59,719
9,900* Digital Microwave Corp. ..................... 58,163
6,450* Electro Rent Corp. .......................... 77,400
2,900* Electro Scientific Industries ............... 86,819
6,600* Esterline Technologies Corp. ................ 137,775
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
ELECTRICAL EQUIPMENT - Continued
7,500 General Cable Corp. ......................... $ 142,500
1,676 General Electric Co. ........................ 151,714
7,400* GenRad, Inc. ................................ 120,250
2,800* Holophane Corp. ............................. 64,050
5,100* Hutchinson Technology, Inc. ................. 157,781
15,100* Intergraph Corp. ............................ 98,150
7,000 Juno Lighting, Inc. ......................... 163,625
10,000* Kemet Corp. ................................. 141,250
7,100* Kent Electronics Corp. ...................... 100,731
5,700 Kuhlman Corp. ............................... 158,888
5,100* Littelfuse, Inc. ............................ 119,850
10,000* Mail-Well, Inc. ............................. 129,375
4,100* Plexus Corp. ................................ 123,000
4,900 Standex International Corp. ................. 114,537
1,200* Thermo Ecotek Corp. ......................... 12,600
5,850 Thomas Industries Inc. ...................... 100,912
2,300* Triumph Group, Inc. ......................... 77,337
7,900* Vicor Corp. ................................. 70,112
4,600 X-Rite, Inc. ................................ 40,250
----------
3,377,285
----------
ELECTRONIC INSTRUMENTS - 2.29%
1,950 Analogic Corp. .............................. 69,225
7,000 BMC Industries .............................. 43,313
8,800* C-Cube Microsystems, Inc. ................... 230,450
11,500* Checkpoint Systems, Inc. .................... 154,531
8,300* Cognex Corp. ................................ 137,469
12,400* Commscope Inc. .............................. 188,325
5,300 CTS Corp. ................................... 186,825
4,300 Daniel Industries, Inc. ..................... 47,031
8,200* Dionex Corp. ................................ 254,200
2,400* Evans & Sutherland Computer ................. 46,800
18,400* Gentex Corp. ................................ 338,100
6,500 Gerber Scientific, Inc. ..................... 164,531
3,400* HADCO Corp. ................................. 119,000
4,575 Harman International Industries ............. 195,295
10,400* Imation Corp. ............................... 169,000
21,000* Integrated Device Technology ................ 123,375
12,600* InterDigital Communication .................. 59,850
4,700* Lattice Semiconductor Corp. ................. 173,313
7,000* LoJack Corp. ................................ 64,750
7,700* MagnaTek, Inc. .............................. 87,588
4,200* Marshall Industries ......................... 109,200
12,750 Methode Electronics, Inc. Class A ........... 173,719
2,300* Metromedia Fiber Network, Inc. .............. 119,313
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
ELECTRONIC INSTRUMENTS - Continued
8,500* Mettler-Toledo International ................ $ 223,125
9,800 National Computer Systems, Inc. ............. 322,175
2,400* Optical Cable Corp. ......................... 33,300
2,700 Park Electrochemical Corp. .................. 51,806
4,700* Performance Food Group Co. .................. 115,150
6,937 Pioneer-Standard Electronics ................ 75,440
5,200 Pittston Bax Group .......................... 45,175
14,700* Read-Rite Corp. ............................. 197,531
14,000* Sensormatic Electronics Corp. ............... 113,750
4,900 Technitrol, Inc. ............................ 147,918
5,000* Telxon Corp. ................................ 135,000
4,100* Thermedics, Inc. ............................ 42,793
10,800* Vishay Intertechnology, Inc. ............... 153,225
----------
4,911,591
----------
ENTERTAINMENT - 0.92%
3,600* AMC Entertainment, Inc. ..................... 60,300
11,700 Aztar Corp. ................................. 59,231
4,100* Carmike Cinemas, Inc. Class A ............... 82,000
9,100* Florida Panthers Holdings, Inc. ............. 101,806
4,100* Gaylord Entertainment Co. ................... 120,181
1,900* GC Companies, Inc. .......................... 76,475
9,100* GTECH Holdings Corp. ........................ 228,069
9,200* Hollywood Entertainment Corp. ............... 220,800
5,800 International Speedway Corp. ................ 205,900
5,900* Marvel Enterprises Inc. ..................... 36,138
6,946* Midway Games Inc. ........................... 70,762
4,800* N2K Inc. .................................... 78,000
4,000* Playboy Enterprises, Inc. ................... 61,750
3,300* Primadonna Resorts, Inc. .................... 24,750
1,100* Recoton Corp. ............................... 20,556
6,200* SFX Entertainment Inc. Class A .............. 310,775
11,400* Spelling Entertainment Group ................ 83,363
15,900* TCI Satellite Entertainment Inc.
Class A .................................... 17,888
2,800* Trans World Entertainment Corp. ............. 64,750
3,400* Trendwest Resorts, Inc. ..................... 48,875
----------
1,972,369
----------
FERTILIZERS - 0.07%
6,604 Mississippi Chemical Corp. .................. 104,013
8,400 Terra Industries, Inc. ...................... 45,675
----------
149,688
----------
</TABLE>
<PAGE> 25
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 23
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
FINANCE COMPANIES - 0.42%
8,800 Aames Financial Corp. ....................... $ 16,500
2,600 Capital Factors Holdings, Inc. .............. 44,850
9,000* Credit Acceptance Corp. ..................... 59,625
3,300* Delta Financial Corp. ....................... 18,150
8,000 Doral Financial Corp. ....................... 143,000
3,900* First Sierra Financial Inc. ................. 35,100
4,100* Franchise Mortgage Acceptance Co. ........... 39,462
9,734* Imperial Credit Industries .................. 98,557
2,166 Oriental Financial Group .................... 66,605
16,000* Phoenix Investment Partners, Ltd ............ 136,000
5,300* Southern Pacific Funding .................... 319
2,400 Student Loan Corp. .......................... 108,900
2,300 Triad Guaranty, Inc. ........................ 51,750
8,800* UniCapital Corp. ............................ 72,600
----------
891,418
----------
FINANCIAL SERVICES - 0.37%
4,100 Advanta Corp. ............................... 42,793
5,000 Conning Corp. ............................... 85,625
5,000 D & N Financial Corp. ....................... 115,313
10,700 EVEREN Capital Corp. ........................ 274,868
1,200 First Liberty Financial Corp. ............... 26,100
2,300* HealthCare Financial Partners ............... 75,613
2,200* International Telecom. Data
Systems Inc. ............................... 54,175
3,600 Resource America, Inc. ...................... 43,425
4,900 Richmond Count Financial Corp. .............. 80,544
----------
798,456
----------
FOODS - 1.32%
3,900* Agribrands International Inc. ............... 118,462
5,600* American Italian Pasta Co. Class A .......... 141,400
6,100 Chiquita Brands International ............... 68,625
7,500 Corn Products International, Inc. ........... 210,468
6,400 Dreyer's Grand Ice Cream, Inc. .............. 87,200
10,000 Earthgrains Co. ............................. 321,250
4,400 International Multifoods Corp. .............. 111,925
3,600 Interpool, Inc. ............................. 52,200
6,800 J.M. Smucker Co. Class A .................... 158,100
6,000 Lance, Inc. ................................. 118,125
3,500 Michael Foods, Inc. ......................... 87,937
15,600* NBTY, Inc. .................................. 95,550
3,800 Pilgrims Pride Corp. ........................ 92,150
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
FOODS - Continued
8,840* Ralcorp Holdings, Inc. ...................... $ 154,700
12,200 Richfood Holdings, Inc. ..................... 226,463
4,300 Riviana Foods ............................... 86,538
1,000* United Natural Foods, Inc. .................. 24,375
16,800 Universal Foods Corp. ....................... 416,850
9,500* Vlasic Foods International Inc. ............. 205,438
1,700* Wild Oats Markets, Inc. ..................... 48,450
----------
2,826,206
----------
FOOTWEAR - 0.38%
7,400 Brown Group, Inc. ........................... 132,738
6,800* Genesco, Inc. ............................... 37,825
7,250* Just For Feet, Inc. ......................... 164,031
4,300 Justin Industries, Inc. ..................... 55,363
3,600 Kenneth Cole Productions, Inc.
Class A .................................... 65,475
4,600* Nine West Group, Inc. ....................... 57,500
12,100 Stride Rite Corp. ........................... 107,388
1,800* Timberland Co. Class A ...................... 73,687
8,500 Wolverine World Wide, Inc. .................. 115,812
----------
809,819
----------
FREIGHT - 0.46%
8,950 Air Express International Corp. ............. 199,138
2,800* Eagle USA Airfreight, Inc. .................. 53,200
15,400* Greyhound Lines, Inc. ....................... 92,400
7,900 J.B. Hunt Transport Services, Inc. .......... 150,100
5,512* Kirby Corp. ................................. 109,551
14,000* OMI Corp. ................................... 43,750
10,200 Overseas Shipholding Group, Inc. ............ 161,287
3,500* SEACOR Holdings, Inc. ....................... 167,125
----------
976,551
----------
GOLD MINING - 0.18%
53,900 Battle Mountain Gold Co. .................... 252,656
8,230* Getchell Gold Corp. ......................... 134,766
----------
387,422
----------
HARDWARE & TOOLS - 0.12%
3,900 Barnes Group Inc. ........................... 120,656
5,900 Barnett, Inc. ............................... 73,750
2,700 Lawson Products, Inc. ....................... 62,100
----------
256,506
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
HEALTHCARE - 2.06%
5,500 Access Health, Inc. ......................... $ 197,313
9,500* Advanced Tissue Sciences, Inc. .............. 27,906
4,000* Alternative Living Services ................. 107,500
7,300* American Oncology Resources ................. 81,669
10,900* Apria Healthcare Group, Inc. ................ 76,300
3,514 Block Drug Co., Inc. Class A ................ 131,789
3,800* CareMatrix Corp. ............................ 106,400
3,500* Curative Technologies, Inc. ................. 100,625
11,000* Genesis Health Ventures, Inc. ............... 105,188
6,100* Hanger Orthopedic Group, Inc. ............... 146,400
4,900 HealthPlan Services Corp. ................... 49,000
6,900 Henry Schein, Inc. .......................... 244,950
1,900 Hooper Holmes, Inc. ......................... 44,413
7,000 Invacare Corp. .............................. 167,563
28,000* Laboratory Corp. of America ................. 36,750
580* LTC Healthcare Inc. ......................... 1,668
29,673* Mariner Post-Acute Network Inc. ............. 127,965
5,600* Medquist, Inc. .............................. 170,100
6,200 Mentor Corp. ................................ 114,700
3,600* NCS HealthCare, Inc. Class A ................ 72,900
15,800* NovaCare, Inc. .............................. 49,375
22,900* Oxford Health Plans, Inc. ................... 253,331
5,575* Patterson Dental Co. ........................ 232,059
6,199* Pharmaceutical Product
Development, Inc. .......................... 177,446
15,700* PhyCor, Inc. ................................ 96,162
2,200* Priority Healthcare Corp. ................... 80,575
3,300* Province Healthcare Co. ..................... 105,600
9,675* Renal Care Group, Inc. ...................... 260,015
9,896* Respironics Inc. ............................ 186,787
4,400* Rural/Metro Corp. ........................... 45,100
6,100* Sierra Health Services, Inc. ................ 139,537
11,088 Sun Healthcare Group, Inc. .................. 58,212
8,300* Sunrise Medical Inc. ........................ 105,825
2,400* Superior Consultant Holdings Corp. .......... 87,600
20,000* Vencor Inc. ................................. 90,000
4,000* VISX, Inc. .................................. 291,500
2,300* Vital Signs, Inc. ........................... 39,100
----------
4,409,323
----------
</TABLE>
<PAGE> 26
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
24 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
HEAVY DUTY TRUCKS/PARTS - 0.28%
1,800 Bandag, Inc. ................................ $ 63,675
2,200* Detroit Diesel Corp. ........................ 45,513
9,000 Federal Signal Corp. ........................ 219,938
2,900* Terex Corp. ................................. 81,200
7,900 Titan International, Inc. ................... 78,506
5,850 Wabash National Corp. ....................... 109,687
----------
598,519
----------
HOME BUILDERS - 0.83%
5,100* American Homestar Corp. ..................... 83,513
8,605 D R Horton, Inc. ............................ 162,419
6,000 Del Webb Corp. .............................. 159,000
11,700* Fairfield Communities, Inc. ................. 126,506
10,800 Kaufman & Broad Home Corp. .................. 272,025
3,400* NVR, Inc. ................................... 133,875
6,281* Palm Harbor Homes, Inc. ..................... 162,521
6,600 Pulte Corp. ................................. 167,888
4,000 Ryland Group, Inc. .......................... 106,250
9,500 Standard Pacific Corp. ...................... 92,625
7,400* Toll Brothers, Inc. ......................... 179,913
3,770 U.S. Home Corp. ............................. 120,168
----------
1,766,703
----------
HOSPITAL MANAGEMENT - 0.52%
7,400* ABR Information Services, Inc. .............. 125,800
11,829* Concentra Managed Care, Inc. ................ 139,730
12,200* Coventry Health Care Inc. ................... 90,737
7,900* Magellan Health Services, Inc. .............. 74,062
18,100* Medaphis Corp. .............................. 52,038
9,300* Orthodontic Centers of America .............. 177,863
3,100* Pediatrix Medical Group ..................... 166,431
3,600* Sunrise Assisted Living Inc. ................ 155,250
11,600* Ventas Inc. ................................. 139,200
----------
1,121,111
----------
HOSPITAL SUPPLIES - 0.91%
5,700* Acuson Corp. ................................ 79,800
4,700 Arrow International, Inc. ................... 133,950
7,500 Ballard Medical Products .................... 163,125
12,400* Bio-Technology General Corp. ................ 83,700
2,600* Closure Medical Corp. ....................... 59,800
5,800* Coherent, Inc. .............................. 73,225
3,600* CONMED Corp. ................................ 98,100
4,700* Datascope Corp. ............................. 103,988
3,000 Diagnostic Products Corp. ................... 77,625
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
HOSPITAL SUPPLIES - Continued
9,800* Isis Pharmaceuticals, Inc. .................. $ 111,475
2,100 Landauer, Inc. .............................. 59,850
1,600* MiniMed, Inc. ............................... 114,000
7,850 Owens & Minor, Inc. ......................... 134,431
17,275* PSS World Medical, Inc. ..................... 358,456
4,600* TECHE Corp. ................................. 86,250
7,800* Theragenics Corp. ........................... 107,738
3,574 West Co., Inc. .............................. 108,560
----------
1,954,073
----------
HOUSEHOLD PRODUCTS - 0.51%
6,900 Church & Dwight Co., Inc. ................... 238,481
10,200 First Brands Corp. .......................... 381,863
4,500 Libbey, Inc. ................................ 138,656
10,700* Linens `N Things, Inc. ...................... 327,688
----------
1,086,688
----------
HUMAN RESOURCES - 0.68%
2,900* Data Processing Resources ................... 68,875
10,300* Interim Services Inc. ....................... 213,725
7,100* Labor Ready, Inc. ........................... 154,869
7,300* Metamor Worldwide, Inc. ..................... 172,919
6,200 Norrell Corp. ............................... 98,813
10,900* Novacare Employee Services Inc. ............. 66,762
21,800 Olsten Corp. ................................ 163,500
8,400* Personnel Group of America .................. 138,600
2,100* Probusiness Services Inc. ................... 92,400
3,000* Remedytemp, Inc. ............................ 43,500
6,000* SCB Computer Technology ..................... 48,750
4,600* SOS Staffing Services, Inc. ................. 34,213
3,000* Staff Leasing, Inc. ......................... 27,000
4,200* Staffmark, Inc. ............................. 97,650
3,700* Westaff Inc. ................................ 24,512
----------
1,446,088
----------
INFORMATION PROCESSING - 1.65%
15,980* Acxiom Corp. ................................ 377,528
2,500* Administaff, Inc. ........................... 67,656
2,400* Advent Software, Inc. ....................... 91,800
10,800* American Management Systems ................. 318,600
2,400* CDW Computer Centers, Inc. .................. 194,400
9,750* CHS Electronics, Inc. ....................... 144,421
4,500* ChoicePoint Inc. ............................ 261,562
3,400* Complete Business Solutions ................. 83,725
4,700* Decisionone Holdings Corp. .................. 35,837
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
INFORMATION PROCESSING - Continued
4,800* InfoUSA Inc. Class B ........................ $ 27,600
6,400* International Network Services .............. 349,600
10,500* Lycos, Inc. ................................. 619,500
6,900 M D C Holdings Inc. ......................... 126,788
3,800* Micrel, Inc. ................................ 154,138
5,900* Paymentech, Inc. ............................ 93,663
2,800* Pegasystems, Inc. ........................... 18,375
7,200* Safeguard Scientifics, Inc. ................. 203,850
3,700* Sipex Corp. ................................. 119,325
20,600* Sybase Inc. ................................. 149,350
2,500* Veeco Instruments, Inc. ..................... 91,250
----------
3,528,968
----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 1.06%
4,400* Alydaar Software Corp. ...................... 40,425
3,400 Aspect Development, Inc. .................... 113,688
5,000* AXENT Technologies, Inc. .................... 130,313
2,918* Baan Co. NV ................................. 34,651
6,000* Cerner Corp. ................................ 157,500
6,200* Clarify, Inc. ............................... 111,600
1,200* Engineering Animation, Inc. ................. 46,950
4,300* First Consulting Group, Inc. ................ 101,050
4,800* H.T.E., Inc. ................................ 43,200
6,500* Harbinger Corp. ............................. 56,062
6,500* HNC Software, Inc. .......................... 214,500
42,500* Informix Corp. .............................. 229,765
2,500* Metro Information Services, Inc. ............ 65,000
1,300* Peregrine Systems, Inc. ..................... 48,018
6,300* Platinum Software Corp. ..................... 66,938
4,400* Quadramed Corp. ............................. 105,600
2,900* Sanchez Computer Associates ................. 88,088
2,400* SCM Microsystems, Inc. ...................... 143,100
8,800 Software AG Systems, Inc. ................... 169,400
3,700* SS&C Technologies Inc. ...................... 43,013
7,800 TAVA Technologies, Inc. ..................... 44,850
6,200* Visio Corp. ................................. 219,325
----------
2,273,036
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 0.73%
11,194* Artesyn Technologies, Inc. .................. 187,500
15,100* Electronics for Imaging, Inc. ............... 404,869
18,600* Komag, Inc. ................................. 134,850
8,000* MEMC Electronic Materials ................... 75,500
</TABLE>
<PAGE> 27
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 25
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - Continued
12,000* Micron Electronics Inc. ..................... $ 273,000
6,700 OEA, Inc. ................................... 87,520
4,400* Rambus Inc. ................................. 389,675
----------
1,552,914
----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 1.20%
6,800* BA Merchants Services, Inc. ................. 113,900
12,600 Checkfree Holdings Corp. .................... 204,750
5,000* CMG Information Services .................... 387,500
1,600* C-Net Inc. .................................. 84,900
8,425* Computer Horizons Corp. ..................... 189,563
5,900 Computer Task Group, Inc. ................... 159,300
2,600* Concord Communications, Inc. ................ 115,375
4,200* Cotelligent Inc. ............................ 76,913
3,000* Intelligroup, Inc. .......................... 48,000
3,700* Mastech Corp. ............................... 98,512
7,500 National Data Corp. ......................... 280,312
4,700* Nichols Research Corp. ...................... 100,462
5,100* Presstek Inc. ............................... 39,206
20,843* Rationale Software Corp. .................... 472,876
8,100* Security Dynamics Technologies .............. 123,525
7,900* Vantive Corp. ............................... 67,150
----------
2,562,244
----------
INFORMATION PROCESSING -
CONSUMER SOFTWARE - 0.63%
2,300* Advantage Learning Systems, Inc. ............ 127,075
6,000* BroadVision Inc. ............................ 159,750
3,900* Imrglobal Corp. ............................. 82,875
5,500* Infoseek Corp. .............................. 187,344
10,200* Macromedia, Inc. ............................ 284,962
3,200* Mindspring Enterprises, Inc. ................ 206,600
9,400* MTI Technology .............................. 37,013
6,900* Open Market Inc. ............................ 119,025
5,400* QAD Inc. .................................... 23,962
3,300* Realnetworks, Inc. .......................... 127,050
----------
1,355,656
----------
INFORMATION PROCESSING -
DATA SERVICES - 5.19%
5,033* ADAC Laboratories ........................... 130,858
7,100 Analysts International Corp. ................ 119,813
8,800 Anixter Internationall, Inc. ................ 145,200
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
INFORMATION PROCESSING -
DATA SERVICES - Continued
2,120* Applied Graphics Technology ................. $ 27,163
5,400* Aspen Technology, Inc. ...................... 75,938
8,208* Avant! Corp. ................................ 136,971
2,550 Barra, Inc. ................................. 66,300
14,400* Bea Systems, Inc. ........................... 172,800
4,100* Bell & Howell Co. ........................... 138,375
6,100* BISYS Group, Inc. ........................... 293,563
4,300 Black Box Corp. ............................. 151,038
9,137* Boole & Babbage, Inc. ....................... 288,958
2,268* BRC Holdings, Inc. .......................... 43,232
6,500* CCC Information Services .................... 71,500
1,950* Computer Management Sciences ................ 34,491
6,900* CSG Systems International, Inc. ............. 432,975
15,200* Data General Corp. .......................... 275,500
3,800* Data Transmission Network ................... 103,788
2,900* Davox Corp. ................................. 20,663
2,600* Dialogic Corp. .............................. 58,500
13,400* Diamond Multimedia Systems .................. 87,938
3,700* Documentum, Inc. ............................ 155,631
5,400* Envoy Corp. ................................. 215,325
2,600 Fair Issac & Co., Inc. ...................... 104,650
8,900* FileNet Corp. ............................... 76,206
7,300* GT Interactive Software Corp. ............... 43,800
3,250 Henry Jack & Associates ..................... 163,313
9,700* HMT Technology Corp. ........................ 110,338
9,310* Hyperion Solutions Corp. .................... 301,411
2,100* IDX Systems Corp. ........................... 86,231
6,900* Industri-Matematik International
Corp ....................................... 43,125
10,100* Information Resources, Inc. ................. 84,588
6,600 Innovex, Inc. ............................... 105,600
17,900* Inprise Corp. ............................... 99,569
4,700 Integrated Systems, Inc. .................... 47,294
6,150* JDA Software Group, Inc. .................... 49,200
2,100* Kronos, Inc. ................................ 90,825
3,000* Learning Tree International ................. 24,938
10,500* Legato Systems, Inc. ........................ 502,031
4,500* Manugistics Group, Inc. ..................... 39,375
15,800* Mentor Graphics Corp. ....................... 136,275
5,100* Mercury Interactive Corp. ................... 233,963
4,200* MICROS Systems, Inc. ........................ 119,700
8,000 MTS Systems Corp. ........................... 103,500
4,050 National Instruments Corp. .................. 117,450
7,700* Network Appliance, Inc. ..................... 578,462
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
INFORMATION PROCESSING -
DATA SERVICES - Continued
1,800* Network Solutions, Inc. ..................... $ 118,125
15,850* NOVA Corp. .................................. 504,228
17,100* Oak Technology, Inc. ........................ 67,865
9,045* Paxar Corp. ................................. 94,972
7,500* Physician Computer Network .................. 468
5,285* Primark Corp. ............................... 132,125
6,150* Progress Software Corp. ..................... 156,056
2,300* Project Software & Development .............. 69,287
11,000* PsiNet, Inc. ................................ 206,250
3,000* QRS Corp. ................................... 126,375
3,520* Renaissance Worldwide Inc. .................. 25,080
13,200* S3, Inc. .................................... 70,950
4,800* Sandisk Corp. ............................... 57,000
3,400* Sapient Corp. ............................... 157,250
11,200* Sequent Computer Systems, Inc. .............. 142,800
8,300* SMART Modular Technologies .................. 173,262
3,500* Splash Technology Holdings .................. 30,187
9,300 Structural Dynamic Research ................. 162,168
3,100* Sykes Enterprises, Inc. ..................... 62,775
14,700* Symantec Corp. .............................. 294,000
12,850* System Software Associates .................. 88,343
10,000* Systems & Computer Technology ............... 182,500
10,125* Technology Solutions Co. .................... 94,289
6,000* Transaction Systems Architects
Class A .................................... 228,000
5,300* Transition Systems, Inc. .................... 53,000
7,000* USCS International, Inc. .................... 225,750
11,200* Vanstar Corp. ............................... 133,700
5,000* Viasoft, Inc. ............................... 36,250
2,800* Volt Information Sciences, Inc. ............. 65,275
9,800* Wang Laboratories, Inc. ..................... 249,900
5,450* Wind River Systems Inc. ..................... 254,106
5,900* Xircom, Inc. ................................ 178,106
4,800* Zebra Technologies Corp. Class A ............ 161,100
-----------
11,109,906
-----------
INFORMATION PROCESSING -
NETWORKING - 0.90%
5,100* Concentric Network Corp. .................... 144,713
4,200* Earthlink Network, Inc. ..................... 255,413
7,400* Excite, Inc. ................................ 362,138
2,200* Exodus Communications, Inc. ................. 74,250
13,300* Picturetel Corp. ............................ 94,762
7,700* PMC-Sierra, Inc. ............................ 414,837
</TABLE>
<PAGE> 28
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
26 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
INFORMATION PROCESSING -
NETWORKING - Continued
6,000* Remedy Corp. ................................ $ 62,625
7,100* Shiva Corp. ................................. 41,268
9,100* USWeb Corp. ................................. 207,025
4,100* Verio Inc. .................................. 77,900
5,700* Visual Networking, Inc. ..................... 198,075
----------
1,933,006
----------
INSURANCE - CASUALTY - 0.89%
5,000* Acceptance Insurance Co., Inc. .............. 98,438
4,700 Baldwin & Lyons, Inc. Class B ............... 99,875
2,600 Citizens Corp. .............................. 85,962
5,100 Commerce Group, Inc. ........................ 174,675
4,500 E.W. Blanch Holdings, Inc. .................. 180,281
8,217 Frontier Insurance Group, Inc. .............. 116,579
9,700 HCC Insurance Holdings, Inc. ................ 180,056
3,500* Highlands Insurance Group ................... 44,625
2,800 Midland Co. ................................. 69,650
3,900 NAC Re Corp. ................................ 186,225
1,100 Nymagic, Inc. ............................... 23,100
6,300* Risk Capital Holdings, Inc. ................. 135,450
2,000 RLI Corp. ................................... 72,375
7,200 Selective Insurance Group ................... 135,900
900 Stewart Information Services Corp. .......... 44,494
3,350* Trenwick Group Inc. ......................... 106,363
3,505 United Fire & Casualty Co. .................. 129,247
5,300 Vesta Insurance Group, Inc. ................. 30,806
----------
1,914,101
----------
INSURANCE - LIFE - 0.69%
4,100* American Heritage Life Investment
Corp ....................................... 100,706
2,900 American Medical Security Group ............. 41,506
4,400 Arm Financial Group Inc., Class A ........... 94,600
600 Kansas City Life Insurance Co. .............. 49,500
9,400 Life USA Holding, Inc. ...................... 119,850
500* National Western Life Ins. Co.
Class A .................................... 59,250
9,100 Presidential Life Corp. ..................... 163,800
6,550 Reinsurance Group of America ................ 429,025
7,600 UICI ........................................ 151,050
7,570* United Companies Financial .................. 30,753
6,850 W.R. Berkley ................................ 229,475
----------
1,469,515
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
INSURANCE - MISCELLANEOUS - 1.26%
6,000* Amerin Corp. ................................ $ 148,125
4,100 Arthur J. Gallaher & Co. .................... 190,138
5,600 Capital Re Corp. ............................ 110,600
2,900 Chicago Title Corp. ......................... 135,575
6,400 CMAC Investment Corp. ....................... 308,800
9,000 Crawford & Co. Class B ...................... 137,250
3,600 Executive Risk, Inc. ........................ 194,400
5,864 Fidelity National Financial ................. 192,412
4,600 Foremost Corp. of America ................... 94,012
3,200 Harleysville Group .......................... 68,800
7,550 HSB Group Inc. .............................. 312,381
2,747 Liberty Corp. ............................... 133,230
12,000* Mid Atlantic Medical Services, Inc. ......... 106,500
4,200 MMI Companies, Inc. ......................... 68,513
4,387 Poe & Brown Inc. ............................ 153,545
4,200 SCPIE Holdings, Inc. ........................ 128,625
8,300 TIG Holdings, Inc. .......................... 116,719
4,100 Zenith National Insurance Corp. ............. 99,937
----------
2,699,562
----------
INSURANCE - MULTILINE - 0.87%
4,650 Alfa Corp. .................................. 101,719
4,878 American Annuity Group, Inc. ................ 112,194
4,553 AmerUs Life Holdings, Inc. .................. 100,451
4,400 Argonaut Group, Inc. ........................ 110,000
5,600 CNA Surety Corp. ............................ 82,250
3,565* Delphi Financial Group, Inc. Class A ........ 166,436
10,100 FBL Financial Group, Inc. Class A ........... 247,450
4,700 LandAmerica Financial Group ................. 288,169
3,100 Life Re Corp. ............................... 291,981
1,050* Markel Corp. ................................ 175,350
1,500 Meadowbrook Insurance Group ................. 23,719
5,491 Medical Assurance, Inc. ..................... 165,416
6,200* PennCorp Financial Group, Inc. .............. 6,975
----------
1,872,110
----------
LEISURE TIME - 1.09%
16,900* Acclaim Entertainment, Inc. ................. 161,606
3,700* Action Performance Co., Inc. ................ 135,050
2,100* Anchor Gaming ............................... 107,100
7,100* Bally Total Fitness Holding Corp. ........... 168,181
9,300* Boyd Gaming Corp. ........................... 33,713
5,600* Family Golf Centers, Inc. ................... 115,150
10,400* Grand Casinos Inc. .......................... 98,800
8,500* Handleman Co. ............................... 102,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
LEISURE TIME - Continued
5,100* Hollywood Park, Inc. ........................ $ 48,768
7,000 Polaris Industries, Inc. .................... 244,125
15,000* Premier Parks, Inc. ......................... 406,875
7,100* Rio Hotel & Casino Inc. ..................... 110,494
4,800* Scotts Co. Class A .......................... 173,700
5,400* Station Casinos, Inc. ....................... 44,550
6,450* Sunterra Corp. .............................. 75,384
6,800* Vail Resorts Inc. ........................... 171,700
3,300* Vistana, Inc. ............................... 46,613
7,200 Winnebago Industries, Inc. .................. 86,400
----------
2,330,209
----------
LODGING - 0.53%
13,400* Choice Hotels International Inc. ............ 153,263
4,100 Deltic Timber Corp. ......................... 82,000
14,400 Extended Stay America, Inc. ................. 144,000
7,500* Host Marriott Services Corp. ................ 82,031
6,039 Marcus Corp. ................................ 91,340
15,280 Meristar Hospitality Corp. .................. 297,005
8,900* NS Group, Inc. .............................. 48,393
12,800* Prime Hospitality Corp. ..................... 112,000
7,100* Red Roof Inns, Inc. ......................... 120,700
----------
1,130,732
----------
MACHINE - CONTRACT - 0.04%
4,200* Rental Service Corp. ........................ 88,988
----------
MACHINE TOOLS - 0.40%
3,450* Chase Industries, Inc. ...................... 40,322
8,800* Gilead Sciences, Inc. ....................... 273,900
3,200 Gleason Corp. ............................... 61,200
9,700 Milacron Inc. ............................... 196,425
5,000 OmniQuip International, Inc. ................ 67,344
2,900* PRI Automation Inc. ......................... 69,600
8,000 Roper Industries, Inc. ...................... 148,500
----------
857,291
----------
MACHINERY - AGRICULTURE - 0.09%
2,700 Allied Products Corp. ....................... 19,913
5,400 Lindsay Manufacturing Co. ................... 81,000
3,500 Toro Co. .................................... 92,750
----------
193,663
----------
</TABLE>
<PAGE> 29
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 27
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.91%
1,100* Astec Industries Inc. ....................... $ 57,063
6,400 Blount, Inc. Class A ........................ 148,000
6,400* Calpine Corp. ............................... 153,600
4,700 CDI Corp. ................................... 126,019
4,700 Columbus McKinnon Corp. ..................... 85,481
8,100 Foster Wheeler Corp. ........................ 138,713
4,950 Granite Construction, Inc. .................. 159,946
8,500 Insituform Technologies, Inc.
Class A .................................... 111,562
3,900 J. Ray Mcdermott S.A ........................ 95,550
7,700 Jacobs Engineering Group, Inc. .............. 290,193
5,900 Kaman Corp. Class A ......................... 95,875
4,822* Morrison Knudsen Corp. ...................... 46,412
3,400 Stone & Webster, Inc. ....................... 115,600
5,200 TJ International Inc. ....................... 122,850
7,542* United Rentals, Inc. ........................ 197,978
----------
1,944,842
----------
MACHINERY - INDUSTRIAL/
SPECIALTY - 2.57%
7,350 AAR Corp. ................................... 185,588
4,646 Albany International Corp. Class A .......... 88,274
6,075 Applied Industrial Tech., Inc. .............. 85,050
10,180 Applied Power, Inc. Class A ................. 362,663
6,873 Baldor Electric Co. ......................... 137,030
5,000 Briggs & Stratton Corp. ..................... 252,188
7,280 Burlington Coat Factory Warehouse
Corp ....................................... 105,560
8,900* DII Group, Inc. ............................. 185,788
4,600 Exide Corp. ................................. 80,213
12,500 Flowserve Corp. ............................. 221,875
2,000 Franklin Electric Co., Inc. ................. 130,500
5,200* Gardner Denver Inc. ......................... 82,550
1,275 General Binding Corp. ....................... 47,813
6,650 Graco, Inc. ................................. 184,537
5,200* Halter Marine Group, Inc. ................... 36,075
4,400 Helix Technology Corp. ...................... 53,900
4,800 Hughes Supply, Inc. ......................... 133,200
9,350 IDEX Corp. .................................. 253,034
4,700 Integrated Process Equipment ................ 49,056
5,600* Ionics, Inc. ................................ 176,050
10,400 JLG Industries, Inc. ........................ 170,950
6,000* Kulicke & Soffa Industries .................. 102,375
5,850 Lilly Industries, Inc. Class A .............. 109,321
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
MACHINERY - INDUSTRIAL/
SPECIALTY - Continued
11,200 Lincoln Electric Holdings ................... $ 263,200
4,375 Manitowoc Co., Inc. ......................... 173,906
9,100 Newport News Shipbuilding ................... 255,937
3,600 Nordson Corp. ............................... 171,900
4,840* Oak Industries Inc. ......................... 149,435
5,300 Regal-Beloit Corp. .......................... 132,500
2,400 Robbins & Myers, Inc. ....................... 48,000
3,400 SPS Technologies, Inc. ...................... 194,650
5,200 Scotsman Industries Inc. .................... 106,925
4,400* Specialty Equipment Companies ............... 103,950
8,100* Stewart & Stevenson Services, Inc. .......... 80,494
5,100* Stillwater Mining Co. ....................... 186,469
3,700 Tecumseh Products Co. Class A ............... 183,150
2,700 Tennant Co. ................................. 93,150
5,600 Watts Industries, Inc. Class A .............. 106,050
3,300* Zoltek Companies, Inc. ...................... 35,475
----------
5,518,781
----------
MEDICAL TECHNOLOGY - 1.36%
4,900* Affymetrix, Inc. ............................ 122,500
15,200* Alaris Medical Inc. ......................... 79,800
4,400* Aviron ...................................... 94,600
4,300* Bio-Rad Laboratories, Inc. Class A .......... 91,375
2,700 Biomatrix, Inc. ............................. 131,119
5,600* Cytyc Corp. ................................. 110,950
3,800* Dendrite International, Inc. ................ 73,150
7,875* Enzo Biochem, Inc. .......................... 103,852
5,900* Haemonetics Corp. ........................... 133,119
3,900* Hologic, Inc. ............................... 50,944
9,100* Idexx Laboratories, Inc. .................... 236,600
2,000* IGEN International, Inc. .................... 54,250
3,000* Kendle International Inc. ................... 67,125
14,500* Liposome, Inc. .............................. 131,406
2,200* Maxxim Med Inc. ............................. 59,950
1,500* On Assignment, Inc. ......................... 53,343
9,118* Organogenesis, Inc. ......................... 121,953
1,800* Perclose, Inc. .............................. 47,700
16,500* Pharmerica Inc. ............................. 68,062
6,300* Protein Design Labs, Inc. ................... 138,600
7,800 Quest Diagnostics Inc. ...................... 139,425
2,400* ResMed Inc. ................................. 81,900
2,800* Sabratek Corp. .............................. 47,250
13,124 Scios Nova Inc. ............................. 99,250
7,275* Serologicals Corp. .......................... 213,703
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
MEDICAL TECHNOLOGY - Continued
4,200* Thermo Cardiosystems, Inc. .................. $ 48,825
6,900* Thermolase Corp. ............................ 35,363
3,400* ThermoTrex Corp. ............................ 35,700
4,300* Transkaryotic Therapies, Inc. ............... 96,750
6,400 US Bioscience, Inc. ......................... 48,400
2,300* Ventana Medical Systems, Inc. ............... 49,450
1,300* Xomed Surgical Products Inc. ................ 56,875
----------
2,923,289
----------
MERCHANDISE - DRUG - 0.72%
1,800* Andrex Corp. ................................ 71,100
3,700* Duane Reade, Inc. ........................... 148,463
8,600* Express Scripts, Inc. Class A ............... 473,000
8,000 Longs Drug Stores Corp. ..................... 285,000
6,000* Medimmune, Inc. ............................. 401,250
16,900* Perrigo Co. ................................. 141,538
4,600 Weider Nutrition International .............. 30,187
----------
1,550,538
----------
MERCHANDISE - SPECIALTY - 2.75%
1,700* Advanced Energy Industries .................. 30,813
6,900* Ames Department Stores, Inc. ................ 163,875
9,100* APAC Teleservices, Inc. ..................... 59,150
6,818 Arctic Cat, Inc. ............................ 71,589
5,600* Avid Technology, Inc. ....................... 133,700
1,600* Bush Boake Allen, Inc. ...................... 54,600
13,500 Caseys General Stores, Inc. ................. 187,313
8,567 Cash America International .................. 144,568
7,500* Central Garden & Pet Co. .................... 120,703
33,200* Charming Shoppes, Inc. ...................... 136,950
4,800* Cole National Corp. Class A ................. 74,100
5,600* Compucom Systems, Inc. ...................... 21,700
1,000* Copart, Inc. ................................ 23,125
24,400* Corporate Express, Inc. ..................... 143,350
4,200* Daisytek International Corp. ................ 65,100
4,900* Department 56, Inc. ......................... 168,744
8,400* Eagle Hardware & Garden, Inc. ............... 236,775
9,800* Earthshell Corp. ............................ 134,138
4,500 Enesco Group Inc. ........................... 108,563
13,500 Fingerhut Companies, Inc. ................... 150,188
3,150* Fossil, Inc. ................................ 87,216
5,200* Franklin Covey Co. .......................... 97,500
5,000* Friedman's, Inc. Class A .................... 50,000
5,950* Garden Ridge Corp. .......................... 46,856
4,400* Gibson Greetings, Inc. ...................... 48,400
</TABLE>
<PAGE> 30
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
28 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
MERCHANDISE - SPECIALTY - Continued
2,700* Guitar Center, Inc. ......................... $ 61,763
6,700 Hancock Fabrics, Inc. ....................... 56,531
4,005 Hancock Holding Co. ......................... 180,225
15,100* Homebase, Inc. .............................. 86,825
3,300* Inacom Corp. ................................ 68,475
2,800* JLK Direct Distribution Inc. ................ 30,625
8,200 Jostens, Inc. ............................... 192,187
3,578 K2, Inc. .................................... 40,700
2,100* Keystone Automotive Industries .............. 40,031
5,400* Knoll, Inc. ................................. 145,800
2,600 LabOne, Inc. ................................ 37,050
6,600* Michaels Stores, Inc. ....................... 118,800
9,000* Micro Warehouse, Inc. ....................... 246,375
5,200 MicroAge, Inc. .............................. 91,000
5,400* Petco Animal Supplies, Inc. ................. 54,000
33,400* Petsmart Inc. ............................... 285,988
4,963 Price Enterprises Inc. ...................... 27,296
3,700* Rent-Way, Inc. .............................. 100,362
2,700* Russ Berrie and Co. Inc. .................... 61,087
8,300 Seitel, Inc. ................................ 111,012
14,100* Sitel Corp. ................................. 35,250
9,500 Sotheby's Holdings, Inc. Class A ............ 266,000
1,914 South Jersey Industries, Inc. ............... 49,405
7,400* Spiegel, Inc. Class A ....................... 29,137
8,050* Sports Authority, Inc. ...................... 52,325
2,300* SportsLine USA, Inc. ........................ 39,675
5,100 Sturm, Ruger & Co. Inc. ..................... 64,706
16,000 Sunglass Hut International .................. 96,000
5,700 The Finish Line ............................. 52,013
5,700* Twinlab Corp. ............................... 94,763
8,600* United Stationers Inc. ...................... 227,900
2,400* West Marine, Inc. ........................... 27,300
9,100* Zale Corp. .................................. 260,487
----------
5,890,109
----------
MERCHANDISING - DEPARTMENT - 0.12%
1,300* Alexander's, Inc. ........................... 103,594
3,300* K&G Men's Center, Inc. ...................... 31,350
2,900* Maxim Group, Inc. ........................... 56,731
7,500* Stein Mart, Inc. ............................ 64,453
----------
256,128
----------
MERCHANDISING - FOOD - 0.50%
4,800* CEC Entertainment, Inc. ..................... 142,200
75 Farmer Bros. Co. ............................ 14,850
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
MERCHANDISING - FOOD - Continued
9,800 Fleming Companies, Inc. ..................... $ 98,613
4,600 Great Atlantic & Pacific Tea Co., Inc. ...... 125,638
3,200* IHOP Corp. .................................. 127,200
2,300 Ingles Markets, Inc. Class A ................ 27,600
10,800 Ruddick Corp. ............................... 211,275
3,000 Smart & Final Inc. .......................... 31,875
8,500* Smithfield Foods, Inc. ...................... 224,718
7,200* Zapata Corp. ................................ 56,700
----------
1,060,669
----------
MERCHANDISING - MASS - 0.26%
3,800* Coldwater Creek, Inc. ....................... 45,600
4,500* Global Directmail Corp. ..................... 88,312
3,700* Insight Enterprises, Inc. ................... 155,863
8,400* ShopKo Stores, Inc. ......................... 270,900
----------
560,675
----------
METALS - ALUMINUM - 0.22%
6,100* ACX Technologies, Inc. ...................... 77,775
7,000 Century Aluminum Co. ........................ 59,500
5,000 Commonwealth Industries, Inc. ............... 48,125
4,400 IMCO Recycling, Inc. ........................ 65,725
5,500* Kaiser Aluminum Corp. ....................... 36,094
7,500 Tredegar Industries, Inc. ................... 175,312
----------
462,531
----------
METALS - COPPER - 0.12%
7,600 ASARCO Inc. ................................. 147,250
4,800* Wolverine Tube, Inc. ........................ 107,700
----------
254,950
----------
METALS - MISCELLANEOUS - 0.42%
3,337 A.M. Castle & Co. ........................... 64,237
4,400 Brush Wellman Inc. .......................... 70,950
4,033 Commercial Metals Co. ....................... 102,085
14,500* Hecla Mining Co. ............................ 60,719
5,000 Precision Castparts Corp. ................... 220,938
4,500* RTI International Metals .................... 67,781
4,500* Ryerson Tull, Inc. Class A .................. 49,781
9,700 Steel Dynamics, Inc. ........................ 132,163
5,900 Titanium Metals Corp. ....................... 58,631
1,900 Tremont Corp. ............................... 68,163
----------
895,448
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
METALS - STEEL - 1.17%
13,000 AK Steel Holding Corp. ...................... $ 249,438
24,800* Armco Inc. .................................. 97,650
29,495* Bethlehem Steel Corp. ....................... 243,334
8,200 Birmingham Steel Corp. ...................... 39,975
4,500 Carpenter Technology Corp. .................. 158,906
5,300* Citation Corp. .............................. 73,538
4,200 Cleveland-Cliffs Inc. ....................... 159,863
3,550 Commercial Intertech Corp. .................. 56,134
2,300* Gibraltar Steel Corp. ....................... 45,713
10,649 Inland Steel Industries, Inc. ............... 195,010
7,200 Intermet Corp. .............................. 98,550
3,800 J & L Specialty Steel, Inc. ................. 23,750
20,600 LTV Corp. ................................... 113,300
8,600* Metals USA, Inc. ............................ 80,088
9,800* Mueller Industries, Inc. .................... 223,563
8,500 National Steel Corp. Class B ................ 62,156
5,400 Oregon Steel Mills, Inc. .................... 68,512
5,500 Quanex Corp. ................................ 98,656
2,500 Reliance Steel & Aluminum Co. ............... 76,562
6,000 Rohn Industries, Inc. ....................... 16,875
3,300 Shiloh Industries, Inc. ..................... 48,056
7,700 Valmont Industries, Inc. .................... 124,162
3,400* WHX Corp. ................................... 35,912
7,400* Wyman-Gordon Co. ............................ 115,625
----------
2,505,328
----------
MISCELLANEOUS - 3.58%
2,200* Abacus Direct Corp. ......................... 126,638
6,700* Alternative Resources Corp. ................. 64,488
6,700 AMCOL International Corp. ................... 71,188
4,300 AMERCO, Inc. ................................ 98,900
4,600 Arch Coal, Inc. ............................. 88,263
7,000* Associated Group, Inc. Class A .............. 262,500
3,000* Aviation Sales Co. .......................... 111,000
2,800* Avondale Industries, Inc. ................... 77,350
4,600* Bacou U.S.A., Inc. .......................... 86,250
8,500* Billing Concepts Corp. ...................... 108,375
5,500 Borg-Warner Security Corp. .................. 100,719
1,800* Boron LePore & Associates, Inc. ............. 55,350
13,350* Brightpoint, Inc. ........................... 200,250
6,600* Building One Services Corp. ................. 112,200
9,200 C. H. Robinson Worldwide, Inc. .............. 207,575
3,400 Cabot Industrial Trust ...................... 71,188
5,800 Cadiz Inc. .................................. 52,200
1,400* Capital Senior Living Corp. ................. 17,325
</TABLE>
<PAGE> 31
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 29
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
MISCELLANEOUS - Continued
4,600* Caribiner International, Inc. ............... $ 42,838
10,700* Catalytica Inc. ............................. 192,433
2,150* Central Parking Corp. ....................... 63,156
10,200* Century Business Services ................... 137,700
4,600* Championship Auto Racing Teams .............. 128,800
4,800* Coach USA, Inc. ............................. 136,200
1,800* Coinmach Laundry Corp. ...................... 29,363
5,600* Computer Learning Centers ................... 36,050
14,000* DeVry, Inc. ................................. 369,250
1,100* Education Management Corp. .................. 50,325
4,100* Equity Corp. International .................. 106,089
5,353 Equity Residential Properties ............... 226,499
3,758* Gemstar Group Ltd. .......................... 228,299
6,000* Hvide Marine, Inc. Class A .................. 36,000
3,175* ITT Educational Services, Inc. .............. 104,378
3,000* Iron Mountain, Inc. ......................... 87,750
2,400* Lason, Inc. ................................. 147,300
4,200 Matthews International Corp. Class A ........ 126,000
2,000* MemberWorks Inc. ............................ 48,750
2,600* Metzler Group, Inc. ......................... 107,900
7,200* Musicland Stores Corp. ...................... 121,950
1,700* ONSALE, Inc. ................................ 104,550
2,550* Pinkerton's, Inc. ........................... 51,000
6,400* Prepaid Legal Services, Inc. ................ 166,400
2,800 The Profit Recovery Group ................... 94,500
7,900 Protection Onc Inc. ......................... 76,038
5,600* Rayovac Corp. ............................... 129,500
4,700 Regis Corp. ................................. 157,450
7,500* Romac International, Inc. ................... 104,532
1,504* Samsonite Corp. ............................. 9,776
7,500* Scott Technologies Inc. - Class A ........... 116,250
2,100* Service Experts, Inc. ....................... 62,213
6,300* Sola International, Inc. .................... 100,013
49,700* Southland Corp. ............................. 100,954
9,225* Sylvan Learning Systems, Inc. ............... 268,101
4,200* Triangle Pharmaceuticals, Inc. .............. 46,200
8,200 Valhi, Inc. ................................. 90,200
5,800* Veritas DGC Inc. ............................ 84,825
5,300* Veterinary Centers of America ............... 97,388
5,000 Wackenhut Corp. ............................. 121,563
3,900* Wackenhut Corrections Corp. ................. 105,300
16,700 Washington Water Power Co. .................. 305,818
4,600* Wesley Jessen VisionCare .................... 108,100
6,000* West Teleservices Corp. ..................... 66,750
3,600* Westell Technologies, Inc. Class A .......... 21,825
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
MISCELLANEOUS - Continued
4,900 Westinghouse Air Brake Co. .................. $ 107,800
6,200* Whittman-Hart, Inc. ......................... 136,787
4,100 Woodward Governor Co. ....................... 102,500
5,500* World Access, Inc. .......................... 111,718
9,600* Xylan Corp. ................................. 174,000
----------
7,660,840
----------
MOBILE HOMES - 0.42%
10,552 Champion Enterprises, Inc. .................. 235,441
4,400 Coachmen Industries, Inc. ................... 99,000
2,500 McGrath Rentcorp ............................ 50,625
3,900* National R.V. Holdings, Inc. ................ 103,350
12,400 Oakwood Homes Corp. ......................... 185,225
4,200 Skyline Corp. ............................... 136,500
3,875 Thor Industries, Inc. ....................... 92,516
----------
902,657
----------
NATURAL GAS-DIVERSIFIED - 0.88%
8,050 Atmos Energy Corp. .......................... 246,531
3,600 Bay State Gas Co. ........................... 142,200
5,200 Eastern Enterprises ......................... 210,925
6,100* Hanover Compressor Co. ...................... 138,013
4,500 Laclede Gas Co. ............................. 112,781
4,500 New Jersey Resources Corp. .................. 175,219
13,500* Seagull Energy Corp. ........................ 110,531
4,568* Southern Union Co. .......................... 92,777
7,200 Southwest Gas Corp. ......................... 171,000
8,500* UGI Corp. ................................... 207,188
9,500 WICOR, Inc. ................................. 207,813
6,600 Western Gas Resources, Inc. ................. 61,462
----------
1,876,440
----------
OIL - INTEGRATED DOMESTIC - 0.26%
1,800* Belco Oil and Gas Corp. ..................... 10,125
7,875 Cross Timbers Oil Co. ....................... 89,578
12,300 Quaker State Corp. .......................... 176,043
21,100* Santa Fe Energy Resources, Inc. ............. 162,206
9,100* Tesoro Petroleum Corp. ...................... 121,143
----------
559,095
----------
OIL - SERVICE - PRODUCTS - 0.36%
8,150* Barrett Resources Corp. ..................... 199,166
2,700* Drill Quip .................................. 38,981
3,100 Getty Realty Corp. .......................... 40,493
5,700* Global Industrial Technologies .............. 47,737
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
OIL - SERVICE - PRODUCTS - Continued
3,600* Gulf Island Fabrication, Inc. ............... $ 27,000
32,300* Kelley Oil & Gas Corp. ...................... 30,281
8,000* Lone Star Technologies, Inc. ................ 78,000
2,700* Maverick Tube Corp. ......................... 15,356
22,200* Parker Drilling Co. ......................... 83,250
12,800* Pride International, Inc. ................... 96,800
6,300* TransMontaigne Inc. ......................... 94,500
5,200* Trico Marine Services, Inc. ................. 28,600
----------
780,164
----------
OIL - SERVICES - 0.48%
4,100 Cliffs Drilling Co. ......................... 64,831
4,700* Key Energy Group, Inc. ...................... 29,375
14,000* Marine Drilling Companies, Inc. ............. 121,625
7,900 Mascotech, Inc. ............................. 127,388
6,500* Oceaneering International, Inc. ............. 80,844
6,800* Offshore Logistics, Inc. .................... 84,575
3,000* OMNI Energy Services Corp. .................. 29,813
5,350 Pennsylvania Enterprises, Inc. .............. 132,078
5,400* Pool Energy Services Co. .................... 60,750
6,400 Range Resources Corp. ....................... 26,800
11,500* Tuboscope Inc. .............................. 95,594
5,300* UTI Energy Corp. ............................ 44,387
7,700* Unova Inc. .................................. 130,418
----------
1,028,478
----------
OIL/GAS PRODUCERS - 1.29%
3,200* Atwood Oceanics, Inc. ....................... 60,000
8,300* Benton Oil and Gas Co. ...................... 31,125
4,800 Berry Petroleum Co. Class A ................. 62,400
7,000 Cabot Oil & Gas Corp. Class A ............... 108,063
22,016* Chesapeake Energy Corp. ..................... 30,272
6,400* Comstock Resources, Inc. .................... 23,600
5,800 Devon Energy Corp. .......................... 191,038
27,900* EEX Corp. ................................... 99,394
10,100 Equitable Resources, Inc. ................... 297,319
4,000* Forcenergy, Inc. ............................ 16,250
7,400* Forest Oil Corp. ............................ 62,900
27,800* Grey Wolf, Inc. ............................. 27,800
31,700 Harken Energy Corp. ......................... 89,156
11,300 Helmerich & Payne, Inc. ..................... 194,925
1,400 Holly Corp. ................................. 22,750
12,300* Input/Output, Inc. .......................... 100,706
6,500 KCS Energy, Inc. ............................ 26,000
5,000* Louis Dreyfus Natural Gas Corp. ............. 64,688
</TABLE>
<PAGE> 32
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
30 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
OIL/GAS PRODUCERS - Continued
2,300 Mitchell Energy & Development Corp.
Class A .................................... $ 29,900
8,300* Newfield Exploration Co. .................... 161,850
6,700* Nuevo Energy Co. ............................ 99,244
8,100* Patterson Energy, Inc. ...................... 37,969
6,400* Plains Resources, Inc. ...................... 113,600
7,700 Pogo Producing Co. .......................... 89,512
3,800* Rutherford-Moran Oil Corp. .................. 7,837
11,400* Snyder Oil Corp. ............................ 146,775
3,400 St. Mary Land & Exploration ................. 64,600
4,100* Stone Energy Corp. .......................... 123,512
5,610* Swift Energy Co. ............................ 52,243
4,000 The Houston Exploration Co. ................. 70,000
7,300* Titan Exploration, Inc. ..................... 53,837
9,700 Tom Brown, Inc. ............................. 97,000
10,800 Vintage Petroleum, Inc. ..................... 111,375
----------
2,767,640
----------
PAPER/FOREST PRODUCTS - 0.76%
7,200* Buckeye Technologies Inc. ................... 140,400
6,300 Caraustar Industries, Inc. .................. 167,344
13,300 Longview Fibre Co. .......................... 150,456
10,700 P. H. Glatfelter Co. ........................ 137,763
5,700 Potlatch Corp. .............................. 215,531
5,700 Rayonier Inc. ............................... 242,250
4,000 Schweitzer-Mauduit Inc. ..................... 73,000
3,500 Standard Register Co. ....................... 103,031
13,200 Unisource Worldwide, Inc. ................... 103,950
2,300 Universal Forest Products ................... 45,712
14,834 Wausau-Mosinee Paper Corp. .................. 250,324
----------
1,629,761
----------
PHOTOGRAPHY - 0.13%
2,520 CPI Corp. ................................... 53,865
6,100 Photronics Inc. ............................. 122,000
5,400* Ultratech Stepper, Inc. ..................... 100,575
----------
276,440
----------
POLLUTION CONTROL - 0.63%
6,765* Allied Waste Industries, Inc. ............... 137,837
61,800* Aqua Alliance Inc. .......................... 123,600
546 Arcadis N.V ................................. 4,368
9,000 Calgon Carbon Corp. ......................... 65,250
6,150* Cuno, Inc. .................................. 91,866
9,200 Dames & Moore, Inc. ......................... 117,875
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
POLLUTION CONTROL - Continued
6,500* Eastern Environmental Services, Inc. ........ $ 141,375
1,225 Mine Safety Appliances Co. .................. 79,625
737* NCS Corp. ................................... 483
18,900* Newpark Resources, Inc. ..................... 139,388
42,340* Safety Kleen ................................ 145,543
5,800* Superior Services, Inc. ..................... 106,575
9,750* Tetra Tech, Inc. ............................ 204,750
----------
1,358,535
----------
PUBLISHING - NEWS - 0.36%
5,900 Hollinger International, Inc. ............... 76,331
9,100 Lee Enterprises, Inc. ....................... 254,800
6,000 Media General, Inc. Class A ................. 284,625
7,400* Network Equipment Technologies .............. 82,325
3,500* Petersen Companies, Inc. .................... 83,781
----------
781,862
----------
PUBLISHING/PRINTING - 1.50%
7,000 American Business Products .................. 155,750
7,750 Banta Corp. ................................. 206,344
2,200* Berlitz International, Inc. ................. 65,313
6,000* Big Flower Holdings, Inc. ................... 146,625
12,400 Bowne & Co., Inc. ........................... 207,700
2,800* Consolidated Graphics, Inc. ................. 161,175
8,100 Houghton Mifflin Co. ........................ 339,187
9,500 John H. Harland Co. ......................... 144,875
6,600 John Wiley & Sons, Inc. Class A ............. 228,113
5,900* Journal Register Co. ........................ 95,506
5,975 McClatchy Company Class A ................... 196,428
4,700 Merrill Corp. ............................... 79,900
4,700 New England Business Service ................ 150,400
3,400* Scholastic Corp. ............................ 161,925
2,800* Scientific Games Holdings ................... 53,200
8,300* Valassis Communications, Inc. ............... 355,862
8,900 Wallace Computer Services, Inc ............. 199,694
9,100* World Color Press, Inc. ..................... 270,725
----------
3,218,722
----------
RAILROAD - 0.23%
4,300 Florida East Coast Industries ............... 147,275
4,600* Motivepower Industries, Inc. ................ 140,012
11,100* Wisconsin Central Transport ................. 201,188
----------
488,475
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
REAL ESTATE - 0.68%
2,300* Avatar Holdings, Inc. ....................... $ 36,800
5,900 Brandywine Realty Trust ..................... 106,200
7,900 Capital Automotive REIT ..................... 105,663
3,330* Castle & Cooke, Inc. ........................ 52,031
4,400* CB Richard Ellis Services ................... 78,100
4,300 CCA Prison Realty Trust ..................... 104,275
6,475 Cousins Properties, Inc. .................... 199,916
4,000 Forest City Enterprises, Inc. Class A ....... 98,000
7,200* Grubb & Ellis Co. ........................... 60,750
5,200 Insignia Financial Group Inc. ............... 70,525
3,200* LaSalle Partners, Inc. ...................... 91,200
7,100 LNR Property Corp. .......................... 138,450
9,333 Republic Bancorp Inc. ....................... 154,578
2,700 SL Green Realty Corp. ....................... 57,713
2,300 Tejon Ranch Co. ............................. 46,287
3,000* Tower Realty Trust, Inc. .................... 56,437
----------
1,456,925
----------
REAL ESTATE INVESTMENT TRUSTS - 6.64%
500 Alexandria Real Estate Equities, Inc. ....... 15,438
5,700 American Health Properties
Com-Core Group ............................. 129,319
6,600 Amli Residential Properties ................. 143,138
2,044 Apartment Investment &
Management Co. Class A ..................... 69,993
3,400 Associated Estates Realty ................... 42,925
3,200 Bedford Property Investors, Inc. ............ 56,800
9,200* Berkshire Reality Co., Inc. ................. 87,400
5,373 Bradley Real Estate, Inc. ................... 111,154
10,030 BRE Properties, Inc. Class A ................ 241,974
3,500 Burnham Pacific Properties .................. 45,063
14,741 Camden Property Trust ....................... 378,659
17,850* Capstead Mortgage Corp. ..................... 59,128
9,500 CBL & Associates Properties ................. 238,688
4,500 CenterPoint Properties Corp. ................ 153,000
5,400 Charles E. Smith Reality, Inc. .............. 159,638
8,900 Chateau Communities, Inc. ................... 254,763
3,900 Chelsea GCA Properties ...................... 131,869
8,400 Colonial Properties Trust ................... 227,325
7,600 Commercial Net Lease Realty ................. 108,300
9,400 Cornerstone Reality Income .................. 99,288
7,800 Criimi Mae, Inc. ............................ 28,763
6,100 Crown American Realty Trust ................. 48,419
14,600 Developers Diversified Realty ............... 281,963
17,200* Dynex Capital, Inc. ......................... 80,625
</TABLE>
<PAGE> 33
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 31
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS - Continued
4,200 EastGroup Properties, Inc. .................. $ 77,963
12,400 Equity Inns, Inc. ........................... 126,325
3,800 Essex Property Trust, Inc. .................. 117,563
10,300 Federal Reality Investment Trust ............ 246,556
16,881 Felcor Lodging Trust, Inc. .................. 401,979
9,800 First Industrial Reality Trust .............. 237,037
4,300 First Union Real Estate ..................... 24,994
9,600 Franchise Finance Corp. ..................... 235,800
8,800 Gables Residential Trust .................... 218,350
9,200 General Growth Properties ................... 348,450
9,400 Glenborough Reality Trust, Inc. ............. 200,925
6,100 Glimcher Reality Trust ...................... 102,938
500 Great Lakes REIT ............................ 7,875
9,600 Health Care Property Investors .............. 303,000
8,400 Health Care REIT, Inc. ...................... 190,050
9,925 Healthcare Realty Trust, Inc. ............... 228,275
6,800 Home Properties of NY, Inc. ................. 167,450
8,900 Hospitality Properties Trust ................ 231,400
5,800 Imperial Credit Commercial
Mortgage Investment Corp. ................. 57,275
4,600 Innkeepers USA Trust ........................ 50,888
9,500 IRT Property Co. ............................ 95,000
4,800 Irvine Apartment Communities ................ 128,700
12,300 JDN Reality Corp. ........................... 254,456
3,300 JP Reality, Inc. ............................ 73,631
4,400 Kilroy Reality Corp. ........................ 98,450
1,692 Kimco Reality Corp. Class D ................. 43,464
6,900 Koger Equity, Inc. .......................... 109,538
5,800* LTC Properties, Inc. ........................ 97,150
4,700 Macerich Co. ................................ 125,137
8,200 Manufactured Home Communities ............... 200,900
7,900 Meridian Industry. Trust, Inc. .............. 190,587
505* Merry Land Properties Inc. .................. 2,083
3,200 MGI Properties .............................. 89,000
4,900 Mid-Amer Apartment Communities .............. 119,437
8,200 Mills Corp. ................................. 175,788
4,300 National Golf Properties, Inc. .............. 124,163
5,600 National Health Investors, Inc. ............. 148,400
10,800 Nationwide Health Properties ................ 241,650
19,600 New Plan Excel Realty Trust ................. 428,750
6,300 Ocwen Asset Investment Corp. ................ 34,650
4,786 Omega Healthcare Investors .................. 145,375
8,100 Pacific Gulf Properties, Inc. ............... 155,925
1,100 Parkway Properties, Inc. .................... 33,206
4,500 Pennsylvania Real Estate Inv ................ 90,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS - Continued
10,300 Prentiss Properties Trust ................... $ 224,025
16,322 Prime Retail, Inc. .......................... 172,401
1,900 PS Business Parks, Inc. ..................... 44,175
6,500 Realty Income Corp. ......................... 164,125
10,200 Reckson Associates Realty Corp. ............. 235,237
5,800* Redwood Trust, Inc. ......................... 83,737
5,300 Regency Realty Corp. ........................ 123,556
9,000 RFS Hotel Investors, Inc. ................... 128,813
8,500* Security Capital Group ...................... 125,375
7,300 Shurgard Storage Centers, Inc.
Class A .................................... 192,081
3,100 Sovran Self Storage, Inc. ................... 79,050
5,800 Storage Trust Realty ........................ 130,137
7,100 Storage USA, Inc. ........................... 225,425
5,600 Summit Properties, Inc. ..................... 98,000
7,000 Sun Communities, Inc. ....................... 227,937
8,100 Sunstone Hotel Investors, Inc. .............. 86,063
7,700 Taubman Centers, Inc. ....................... 106,837
5,600 Thornburg Mortgage Asset Corp. .............. 49,000
9,900 Town & Country Trust ........................ 149,737
6,200* Trammell Crow Co. ........................... 148,800
5,300 TriNet Corporate Realty Trust ............... 142,106
20,600 United Dominion Realty Trust ................ 222,737
6,100 Urban Shopping Centers, Inc. ................ 200,537
5,400 Walden Residential Properties ............... 111,375
8,600 Washington Real Estate Inv .................. 150,500
7,200 Weeks Corp. ................................. 206,100
5,100 Weingarten Realty Investors ................. 231,731
7,200* Wellsford Real Properties, Inc. ............. 65,700
4,400 Western Investment Real Estate .............. 51,425
4,100 Westfield America Inc. ...................... 71,750
-----------
14,222,637
-----------
RESTAURANTS - 1.12%
6,900* Advantica Restaurant Corp. .................. 44,419
7,750 Applebees International, Inc. ............... 159,359
10,662 Avado Brands Inc. ........................... 81,964
10,700 Bob Evans Farms, Inc. ....................... 258,806
11,780* Buffets, Inc. ............................... 138,415
4,200* Consolidated Products, Inc. ................. 86,888
9,900* Foodmaker, Inc. ............................. 191,813
7,100* Landrys Seafood Restaurants ................. 57,688
7,900* Lone Star Steakhouse & Saloon ............... 60,238
10,000 Luby's Cafeterias, Inc. ..................... 158,750
2,900* NPC International, Inc. ..................... 32,988
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
RESTAURANTS - Continued
5,225* Papa Johns International, Inc. .............. $ 219,123
2,500* PJ America, Inc. ............................ 48,906
8,500* Rainforest Cafe, Inc. ....................... 58,968
7,500 Ruby Tuesday, Inc. .......................... 139,687
15,600* Ryan's Family Steak Houses .................. 177,450
3,500* Sbarro, Inc. ................................ 91,000
7,125* Sonic Corp. ................................. 139,828
8,900 TCBY Enterprises Inc. ....................... 68,975
4,200 The Cheesecake Factory ...................... 109,200
5,000* Triarc Companies Inc. Class A ............... 80,625
-----------
2,405,090
-----------
SAVINGS & LOAN - 1.13%
4,820 ALBANK Financial Corp. ...................... 326,555
6,000 Bay View Capital Corp. ...................... 126,750
5,200* Coast Federal Litigation-CVF ................ 47,450
5,200 Dime Community Bancshares ................... 140,400
5,155 Downey Financial Corp. ...................... 134,030
3,500 First Financial Holdings, Inc. .............. 66,500
4,000 First Indiana Corp. ......................... 76,500
8,113 First Source Bancorp Inc. ................... 64,904
9,000 FirstFed Financial Corp. .................... 159,750
2,900 JSB Financial, Inc. ......................... 152,975
8,900* Local Financial Corp. ....................... 75,650
5,898 MAF Bancorp, Inc. ........................... 151,136
7,625 Provident Bankshares Corp. .................. 204,922
5,622* Queens County Bancorp, Inc. ................. 168,660
2,500 Reliance Bancorp, Inc. ...................... 72,813
10,000 Staten Island Bancorp, Inc. ................. 208,125
6,600 TR Financial Corp. .......................... 246,675
2,400* Wilshire Financial Services Group ........... 2,325
-----------
2,426,120
-----------
SECURITIES RELATED - 0.67%
4,100 Dain Rauscher Corp. ......................... 152,725
9,000* E*Trade Group, Inc. ......................... 243,563
6,200 Enhanced Financial Services ................. 182,125
5,500* Hambrecht & Quist Group ..................... 133,375
2,300* Investment Technology Group ................. 120,175
1,699 Investors Financial Services ................ 95,568
4,800 Jefferies Group, Inc. ....................... 222,600
9,150 Morgan Keegan, Inc. ......................... 183,000
5,700* Pioneer Group, Inc. ......................... 104,025
-----------
1,437,156
-----------
</TABLE>
<PAGE> 34
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
32 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
SEMICONDUCTOR EQUIPMENT - 0.67%
3,000* ATMI Inc. ................................... $ 57,375
8,100* LAM Research Corp. .......................... 144,788
12,000* Microchip Technology, Inc. .................. 417,750
9,800* Novellus Systems, Inc. ...................... 486,325
3,200* QLogic Corp. ................................ 328,400
----------
1,434,638
----------
SEMICONDUCTORS - 1.39%
5,300* Actel Corp. ................................. 89,769
4,500* Applied Micro Circuits Corp. ................ 150,750
8,500* Burr Brown Corp. ............................ 200,813
14,599* Cirrus Logic, Inc. .......................... 179,750
3,100 Cohu, Inc. .................................. 70,525
7,150* Credence Systems Corp. ...................... 140,318
9,000* Cymer Inc. .................................. 135,000
21,200* Cypress Semiconductor Corp. ................. 215,975
10,800* DSP Communications, Inc. .................... 161,325
6,000 Dallas Semiconductor Corp. .................. 226,500
7,800* Electroglas, Inc. ........................... 113,100
5,700* Etec Systems, Inc. .......................... 187,388
6,200* FSI International, Inc. ..................... 48,437
2,900* Fusion Systems Corp. ........................ 0
17,600* International Rectifier Corp. ............... 165,000
10,000* Level One Communications, Inc. .............. 309,375
5,900* MRV Communications, Inc. .................... 38,719
4,950* SDL, Inc. ................................... 110,447
7,200* Silicon Valley Group Inc. ................... 88,650
2,700* Siliconix, Inc. ............................. 51,975
1,900* Speedfam International, Inc. ................ 28,856
9,500* Unitrode Corp. .............................. 160,906
9,200* VLSI Technology, Inc. ....................... 105,225
----------
2,978,803
----------
TELECOMMUNICATIONS - 3.33%
5,400 ABM Industries, Inc. ........................ 179,888
6,400* Adtran, Inc. ................................ 157,200
4,600* Aerial Communications, Inc. ................. 18,256
22,570* American Tower Corp. - Class A .............. 521,931
14,500* Aspect Telecommunications Co. ............... 274,594
12,800* CellNet Data Systems, Inc. .................. 75,200
8,400* CellStar Corp. .............................. 54,075
3,200* Cellular Communication
of Puerto Rico ............................. 47,600
4,650* Cellular Communications
International .............................. 290,044
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
TELECOMMUNICATIONS - Continued
4,800* Centennial Cellular Corp. Class A ........... $ 192,000
2,400* CKS Group, Inc. ............................. 80,400
8,500* CommNet Cellular, Inc. ...................... 89,250
3,200* CoreComm Inc. ............................... 47,600
2,800* Diamond Tech Partners, Inc. ................. 39,200
2,200* Dycom Industries, Inc. ...................... 86,488
10,400* E. Spire Communication, Inc. ................ 83,850
2,200* EchoStar Communications Corp.
Class A .................................... 85,388
3,100* Excel Switching Corp. ....................... 80,988
17,000* General Communication, Inc. ................. 69,063
8,900* General Magic Inc. .......................... 47,281
7,000* Geotel Communications Corp. ................. 192,500
15,700* Glenayre Technologies, Inc. ................. 97,144
10,500* ICG Communications, Inc. .................... 241,500
7,400 Inter-Tel, Inc. ............................. 177,600
11,700* ITC Deltacom, Inc. .......................... 183,544
3,100* Itron, Inc. ................................. 20,731
5,800* IXC Communications, Inc. .................... 158,775
4,750* MasTec, Inc. ................................ 110,437
4,000* MGC Communications, Inc. .................... 22,750
2,794* Millicom International Cellular S.A ......... 93,250
6,200* MMC Networks, Inc. .......................... 80,988
4,600* Natural Microsystems Corp. .................. 50,887
2,000 North Pittsburgh Systems .................... 28,000
9,766* NTL Inc. .................................... 543,844
9,300* Omnipoint Corp. ............................. 82,537
2,100* Pacific Gateway Exchange, Inc. .............. 93,975
12,800* PageMart Wireless, Inc. Class A ............. 76,800
15,900* Pairgain Technologies Inc. .................. 160,987
4,400* Plantronics, Inc. ........................... 289,300
6,000* Powertel Inc. ............................... 81,000
3,000* Powerwave Technologies Inc. ................. 42,750
5,500* Premier Technologies, Inc. .................. 27,156
6,700* Premisys Communications Inc. ................ 99,662
7,600* RCN Corp. ................................... 129,200
14,200* Skytel Communications Inc. .................. 296,425
1,300 Superior Telecom Inc. ....................... 56,550
8,600* Tekelec ..................................... 133,300
5,500* Telegroup, Inc. ............................. 12,375
8,600* Tel-Save.Com Inc. ........................... 102,662
4,100* Transaction Network Services ................ 98,913
2,000* US LEC Corp. ................................ 22,750
9,900* USN Communications, Inc. .................... 4,331
8,200* Vanguard Cellular Systems Class A ........... 188,600
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
TELECOMMUNICATIONS - Continued
19,500* Western Wireless Corp Class A ............... $ 353,437
9,600* WinStar Communications, Inc. ................ 267,600
----------
7,142,556
----------
TEXTILE - PRODUCTS - 0.55%
14,200 Burlington Industries, Inc. ................. 148,213
6,100* Cone Mills Corp. ............................ 27,831
5,700* Dan River Inc - Class A ..................... 46,313
4,850 G & K Services, Inc. Class A ................ 244,925
7,650 Guilford Mills, Inc. ........................ 110,447
6,600* Lydall, Inc. ................................ 83,737
10,400 Russell Corp. ............................... 247,650
4,700 Springs Industries, Inc. Class A ............ 183,006
7,800 Wellman, Inc. ............................... 94,575
----------
1,186,697
----------
TOBACCO - 0.21%
2,800* Cons Cigar Holdings Inc. .................... 31,850
12,100 DIMON, Inc. ................................. 99,068
6,001 General Cigar Holdings, Inc. ................ 58,885
7,300 Universal Corp. ............................. 256,869
----------
446,672
----------
TRUCKERS - 0.81%
7,500* American Freightways Corp. .................. 67,500
5,150 Arnold Industries, Inc. ..................... 73,388
7,800* Consolidated Freightways Corp. .............. 97,988
4,532* Heartland Express, Inc. ..................... 77,611
750* Knight Transportation, Inc. ................. 14,625
3,200* Landstar System, Inc. ....................... 131,200
2,300* M.S. Carriers, Inc. ......................... 56,350
4,200 Roadway Express, Inc. ....................... 62,475
17,862 Rollins Truck Leasing Corp. ................. 214,344
6,900* Swift Transportation Co., Inc. .............. 151,368
6,700 USFreightways Corp. ......................... 180,063
5,875 Varlen Corp. ................................ 154,953
10,587 Werner Enterprises, Inc. .................... 174,024
3,900 Xtra Corp. .................................. 185,493
6,500* Yellow Corp. ................................ 104,812
----------
1,746,194
----------
UTILITIES - COMMUNICATION - 0.30%
9,200 Aliant Communications, Inc. ................. 262,200
3,300 CFW Communications Co. ...................... 68,888
</TABLE>
<PAGE> 35
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 33
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
UTILITIES - COMMUNICATION - Continued
3,966* Commonwealth Telephone
Enterprises, Inc. .......................... $ 107,578
5,178 PXRE Corp. .................................. 114,886
6,200 The Alpine Group, Inc. ...................... 97,650
------------
651,202
------------
UTILITIES - ELECTRIC - 2.13%
5,400 Black Hills Corp. ........................... 133,313
5,700 Cleco Corp. ................................. 194,869
3,400 CILCORP, Inc. ............................... 205,700
4,600 Commonwealth Energy System Co. .............. 177,100
6,000 Eastern Utilities Associates ................ 148,125
15,100* El Paso Electric Co. ........................ 139,675
4,400 Empire District Electric Co. ................ 96,250
10,500 Hawaiian Electric Industries ................ 408,844
7,500 Idacorp Inc. ................................ 261,563
7,467 Indiana Energy, Inc. ........................ 168,933
7,425 Madison Gas & Electric Co. .................. 171,703
11,000 Minnesota Power Inc. ........................ 459,938
11,600 Nevada Power Co. ............................ 274,775
7,800 Northwestern Corp. .......................... 184,275
2,875 Otter Tail Power Co. ........................ 114,281
10,700 Public Service Co. of New Mexico ............ 207,981
10,100 Rochester Gas & Electric Corp. .............. 310,575
5,950 SIG Corp, Inc. .............................. 200,813
2,800 TNP Enterprises, Inc. ....................... 106,400
8,020* Unisource Energy Corp. ...................... 119,798
3,700 United Illuminating Co. ..................... 185,693
11,200 Washington Gas Light Co. .................... 285,600
------------
4,556,204
------------
UTILITIES - GAS, DISTRIBUTION - 0.63%
14,700 AGL Resources, Inc. ......................... 316,969
2,200 Colonial Gas Co. ............................ 76,175
2,400 Connecticut Energy Corp. .................... 67,050
8,600 Energen Corp. ............................... 154,800
6,300 Northwest Natural Gas Co. ................... 178,763
1,200* NUI Corp. ................................... 29,175
7,500 Piedmont Natural Gas Co., Inc. .............. 262,500
5,300 Public Service Co. of NC .................... 128,856
7,500 Southwestern Energy Co. ..................... 56,250
2,650 Yankee Energy Systems, Inc. ................. 77,181
------------
1,347,719
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
UTILITIES - GAS, PIPELINE - 0.33%
2,600 North Carolina Natural Gas .................. $ 83,850
9,900 ONEOK Inc. .................................. 344,644
7,300 Peoples Energy Corp. ........................ 275,119
------------
703,613
------------
UTILITIES - MISCELLANEOUS - 0.68%
4,400 Central Hudson Gas & Electric ............... 177,925
3,800* Group Maintenance America Corp. ............. 50,825
12,075 MDU Resources Group, Inc. ................... 305,648
3,500 Orange and Rockland Utilities ............... 196,875
7,700 Sierra Pacific Resources .................... 277,200
8,300 WPS Resources Corp. ......................... 280,125
11,000* Walter Industries, Inc. ..................... 157,438
------------
1,446,036
------------
WATER SERVICES - 0.27%
3,000 Aquarion Co. ................................ 112,688
2,900 California Water Service Group .............. 75,581
2,000 E'Town Corp. ................................ 84,250
6,300 Philadelphia Suburban Corp. ................. 159,469
6,900 United Water Resources ...................... 143,175
------------
575,163
------------
TOTAL COMMON STOCKS
(Cost $202,714,796) ......................... 209,235,294
------------
PREFERRED STOCKS - 0.04%
5,900 Price Enterprises Inc. ...................... 79,650
778 Prime-Retail, Inc. .......................... 13,858
------------
93,508
------------
TOTAL PREFERRED STOCKS
(Cost $91,185) .............................. 93,508
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- --------- ----------
<S> <C> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 2.15%
SECURITIES RELATED - 1.34%
$2,872,000 Merrill Lynch & Co., Inc.,
5.00% due 12/01/1998 2,872,000
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- --------- ----------
<S> <C> <C>
UTILITIES - ELECTRIC - 0.81%
$1,729,000 Conagra,
5.52% due 12/02/1998 ..................... $ 1,728,735
-------------
TOTAL CORPORATE SHORT
TERM COMMERCIAL PAPER
(Cost $4,600,735) ......................... 4,600,735
-------------
UNITED STATES GOVERNMENT
SHORT TERM - 0.20%
U. S. TREASURY BILLS - 0.20%
United States Treasury Bills:
275,000 4.00% due 12/24/1998 ..................... 274,080
150,000 3.75% due 12/10/1998 ..................... 149,859
-------------
423,939
-------------
TOTAL UNITED STATES GOVERNMENT
SHORT TERM
(Cost $423,939) ........................... 423,939
-------------
TOTAL INVESTMENTS
(Cost $207,830,655) - 100.11% ............ 214,353,476
Other assets less liabilities,
net - (0.11)% ............................ (250,171)
-------------
NET ASSETS (equivalent
to $15.67 per share on
13,660,212 shares
outstanding) - 100% ...................... $ 214,103,305
=============
* Non-income producing
</TABLE>
<PAGE> 36
================================================================================
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS
34 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
- --------- -------------
<S> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/98)
22 (2) Russell 2000 Index Futures
(December/$400.80).......................... $ 1,562
=============
(1)U.S.Treasury Bills with a market value of
approximately $275,000 were maintained in
a segregated account with a portion placed
as collateral for futures contracts.
(2)Per 500
</TABLE>
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
13,660,212 shares outstanding.......................... $ 136,602
Additional paid in capital............................... 172,805,715
Accumulated net realized gain on securities.............. 34,597,991
Undistributed net investment income...................... 38,614
Unrealized appreciation of:
Investments........................... $ 6,522,821
Futures .............................. 1,562 6,524,383
----------- ------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING............................................. $214,103,305
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 37
================================================================================
SMALL CAP INDEX FUND - FINANCIAL STATEMENTS (Unaudited)
35
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends ........................................................................... $ 1,611,718
Interest ............................................................................ 210,818
------------
Total investment income ........................................................... 1,822,536
------------
EXPENSES:
Advisory fees ....................................................................... 377,238
Custodian and accounting services ................................................... 25,809
Reports to shareholders ............................................................. 19,085
Audit fees and tax services ......................................................... 3,635
Directors' fees and expenses ........................................................ 3,314
Miscellaneous ....................................................................... 11,044
------------
Total expenses .................................................................... 440,125
------------
NET INVESTMENT INCOME ............................................................... 1,382,411
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain (loss) on:
Investments ...................................................... $ 16,829,951
Futures contracts ................................................ (928,766) 15,901,185
------------
Net unrealized appreciation (depreciation) during the period:
Investments ...................................................... (47,404,096)
Futures contracts ................................................ 312,787 (47,091,309)
------------ ------------
Net realized and unrealized loss on securities during the period ................. (31,190,124)
------------
DECREASE IN NET ASSETS RESULTING FROM OPERATIONS .................................... $(29,807,713)
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income .............................................. $ 1,382,411 $ 2,380,770
Net realized gain on securities .................................... 15,901,185 19,072,915
Net unrealized appreciation (depreciation) of securities
during the period ................................................ (47,091,309) 19,625,858
--------------- ---------------
Increase (decrease) in net assets resulting from operations ...... (29,807,713) 41,079,543
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .............................................. (1,375,696) (2,367,516)
Net realized gain on securities .................................... -- (17,477,319)
--------------- ---------------
Decrease in net assets resulting from distributions
to shareholders ................................................. (1,375,696) (19,844,835)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ................................... 19,427,789 39,604,509
Proceeds from capital stock issued for distributions reinvested .... 1,375,696 19,844,835
--------------- ---------------
20,803,485 59,449,344
Cost of capital stock repurchased .................................. (22,699,329) (25,960,237)
--------------- ---------------
Increase (decrease) in net assets resulting from capital
stock transactions .............................................. (1,895,844) 33,489,107
--------------- ---------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............................ (33,079,253) 54,723,815
NET ASSETS:
Beginning of period ................................................ 247,182,538 192,458,743
--------------- ---------------
End of period (including undistributed net investment income
of $38,614 and $31,899) .......................................... $ 214,103,305 $ 247,182,558
=============== ===============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ....................................... 1,249,840 2,173,506
Shares issued for distributions reinvested ......................... 88,275 1,157,942
Shares of capital stock repurchased ................................ (1,454,820) (1,447,855)
--------------- ---------------
Increase (decrease) in shares outstanding ........................ (116,705) 1,883,593
Shares outstanding:
Beginning of period .............................................. 13,776,917 11,893,324
--------------- ---------------
End of period .................................................... 13,660,212 13,776,917
=============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 38
================================================================================
INTERNATIONAL EQUITIES FUND - STATEMENT OF NET ASSETS
36 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
COMMON STOCKS - 99.56%
AIRLINES - 0.62%
4,100 British Airways PLC - ADR ................... $ 285,462
40,000* Japan Air Lines Co. Ltd. .................... 101,299
10,000 Lufthansa AG ................................ 218,692
60,000 Malay Airline System BHD .................... 39,158
35,000 Singapore Airlines .......................... 244,013
-----------
888,624
-----------
APPAREL & PRODUCTS - 0.17%
20,000 Onward Kashiyama Co., Ltd. .................. 247,565
-----------
APPLIANCES/FURNISHINGS - 1.42%
4,200 Matsushita Electric Industrial Co.
Ltd. - ADR ................................. 684,338
10,000 Philips Electronics NV ...................... 632,663
33,000 Sanyo Electric Co. Ltd. ..................... 93,214
3,400 Sanyo Electric Co. Ltd. - ADR ............... 49,300
7,970 Sony Corp - ADR ............................. 582,806
-----------
2,042,321
-----------
AUTO - CARS - 3.89%
16,582 Daimler Chrysler AG Stuttgart ............... 1,520,362
50,000 Fiat S.P.A .................................. 153,297
16,500 Fiat S.P.A. - ADR ........................... 252,656
10,000 Honda Motor Co., Ltd. - ADR ................. 725,000
500 Peugeot Citroen SA .......................... 79,097
78,000 Toyota Motor Corp. .......................... 1,975,325
5,000 Volkswagen AG ............................... 406,732
20,000 Volvo AB .................................... 464,487
-----------
5,576,956
-----------
AUTO - ORIGINAL EQUIPMENT - 0.05%
25,000 Calsonic Corp. .............................. 67,979
-----------
AUTO - REPLACEMENT PARTS - 0.97%
26,000 Bridgestone Corp. ........................... 607,792
5,550 Denso Corp. ................................. 429,840
8,191 Michelin (CGDE) Class B ..................... 353,458
-----------
1,391,090
-----------
BANKS - OTHER - 13.27%
60,000 AMMB Holdings BHD ........................... 61,263
50,000 Asahi Bank Ltd. ............................. 190,747
3,190 Asahi Bank Ltd. - ADR ....................... 121,973
106,000 Bank of Tokyo - Mitsubishi .................. 1,152,922
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
BANKS - OTHER - Continued
68,000 Bank of Yokohama Ltd. ....................... $ 143,507
2,296 Bank of Yokohama Ltd. - ADR ................. 48,565
38,893 Barclays PLC ................................ 882,083
50,000 Bco Bilbao Vizcaya .......................... 789,747
11,977 Bco Comm Portugues .......................... 364,821
4,000* Bco Espir Santo ............................. 123,979
51,142 Bco Santander SA ............................ 1,045,160
40,000 Chiba Bank Ltd. ............................. 150,649
108,000 Commerce Asset Holding ...................... 77,589
11,250 Commerce Asset Holding
(Warrants) ................................. 1,688
250,000 DCB Holdings BHD ............................ 135,526
50,000 DCB Holdings BHD (Warrants) ................. 8,947
6,300 Den Danske Bank AF 1871 - ADR ............... 813,469
24,500 Deutsche Bank AG - ADR ...................... 1,589,592
13,000 Development Bank of Singapore Ltd. .......... 98,515
14,987 Development Bank of Singapore Ltd.
- ADR ...................................... 454,984
17,000 Dresdner Bank AG - ADR ...................... 787,270
10,000 Foreningssparbk ............................. 280,167
25,000 Hang Seng Bank .............................. 220,360
2,180 HSBC Holdings PLC - ADR ..................... 558,866
15,000 Industrial Bank of Japan Ltd. ............... 80,966
48,000 Joyo Bank ................................... 175,325
134,101 Lloyds TSB Group PLC ........................ 1,863,549
60,000 Malayan Bk BHD .............................. 94,737
35,000* Merita Oyj .................................. 203,548
32,154 National Australia Bank Ltd. ................ 481,258
9,319 National Australia Bank Ltd. - ADR .......... 695,430
10,746 National Westminster Bank PLC ............... 196,036
2,500* Paribas ..................................... 222,791
20,743 Royal Bank Scot Group ....................... 312,379
98,000 Sakura Bank Ltd. ............................ 249,773
25,000* Sao Paolo Imi SPA ........................... 410,031
30,000 Shizuoka Bank ............................... 325,081
74,000 Sumitomo Bank ............................... 822,289
26,000 Tokai Bank .................................. 131,477
2,225 Tokai Bank - ADR ............................ 225,541
6,653 Ubs AG ...................................... 2,001,189
13,300 Westpac Banking Corp. Ltd. - ADR ............ 444,719
-----------
19,038,508
-----------
BANKS - REGIONAL - 0.49%
21,161* Istituto Bancario San Paolo ................. 698,313
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
BEVERAGE - BREWERS/
DISTRIBUTORS - 1.39%
34,642 Bass ........................................ $ 477,692
60,500 Diageo ...................................... 677,585
16,000 Kirin Brewery Co., Ltd. ..................... 165,974
12,000 LVMH ( Moet Hennessy Louis
Vuitton) - ADR ............................. 468,000
45,000 Sapporo Breweries ........................... 199,067
-----------
1,988,318
-----------
BROADCASTING - 0.32%
764 Canal Plus .................................. 175,516
40,000 Mediaset .................................... 282,185
-----------
457,701
-----------
BUILDING MATERIALS - 1.90%
20,000 Asahi Glass Co. Ltd. ........................ 116,234
1,223 Cie De St Gobain ............................ 180,574
31,216 CRH PLC ..................................... 473,253
2,505 Fletcher Challenge Building Division ........ 31,469
2,700 Glaverbel SA ................................ 348,004
525 Holderbank Finance Glarus ................... 607,606
40,000 Inax Corp. .................................. 219,480
4,459 Lafarge SA .................................. 420,098
23,797 Rexam ....................................... 77,719
15,000 Tostem Corp. ................................ 249,594
-----------
2,724,031
-----------
CHEMICAL - MAJOR - 1.24%
25,000 BASF AG ..................................... 946,093
10,000 Bayer AG .................................... 410,269
10,000 Bayer AG - ADR .............................. 428,205
-----------
1,784,567
-----------
CHEMICAL - MISCELLANEOUS - 1.68%
15,303 Air Liquide - ADR ........................... 521,864
10,200 Akzo Nobel N V- ADR ......................... 416,925
23,420 BOC Group PLC ............................... 340,138
7,500 Degussa AG .................................. 373,574
6,000 Imperial Chemical Industries PLC
- ADR ...................................... 227,250
13,100 Shin Etsu Chemical Co. ...................... 292,411
50,000 Toray Industries Inc. ....................... 237,419
-----------
2,409,581
-----------
</TABLE>
<PAGE> 39
================================================================================
INTERNATIONAL EQUITIES FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1998 (Unaudited) 37
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
CONGLOMERATES - 1.17%
6,890 Broken Hill Proprietary Co. Ltd. ............
- ADR ...................................... $ 108,518
34,942 BTR ......................................... 71,468
15,408 BTR PLC ..................................... 126,145
30,000 Hutchison Whampoa ........................... 214,064
3,300 Itochu Corp. - ADR .......................... 63,090
71,250 Keppel Corp. Ltd. ........................... 187,466
26,875 Keppel Corp. Ltd. - ADR ..................... 141,639
8,157 Lagardere Groupe ............................ 331,918
22,000 Mitsubishi Corp. ............................ 141,071
50,000 Mitsui & Co. ................................ 285,308
6,400* Wharf Hldgs (Warrants) ...................... 752
----------
1,671,439
----------
CONSUMER FINANCE - 0.05%
37,000 Nippon Shinpan Co. .......................... 67,573
----------
COSMETICS/TOILETRIES - 1.28%
1,100 Loreal Co. .................................. 684,648
7,900 Loreal Co. - ADR ............................ 986,523
14,490 Shiseido Ltd. - ADR ......................... 165,153
----------
1,836,324
----------
DRUGS - 8.73%
26,666 Astra AB .................................... 488,232
44,900 Glaxo Wellcome PLC - ADR .................... 2,851,150
7,700 Kissei Pharmaceutical Co. ................... 113,875
1,400 Novartis AG ................................. 2,626,943
5,000 Ono Pharmaceutical .......................... 138,799
3,500 Rhone Poulenc SA ............................ 174,409
200 Roche Holdings AG ........................... 2,349,065
10,000 Sankyo Co. Ltd. ............................. 227,273
149,642 Smithkline Beecham .......................... 1,836,392
25,000 Takeda Chemical Industries Ltd. ............. 842,127
20,900 Zeneca Group PLC - ADR ...................... 879,106
-----------
12,527,371
-----------
ELECTRICAL EQUIPMENT - 1.59%
1,000 Barco ....................................... 267,783
15,000 Fanuc ....................................... 474,838
84,000 General Electric PLC ........................ 686,534
10,400 General Electric PLC - ADR .................. 85,274
10,000 Murata Manufacturing Co. .................... 391,234
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
ELECTRICAL EQUIPMENT - Continued
3,400 Sumitomo Electric Industries Ltd.
- ADR ...................................... $ 370,647
-----------
2,276,310
-----------
ELECTRONIC INSTRUMENTS - 1.92%
50,000 Hitachi Ltd. ................................ 300,730
5,050 Hitachi Ltd. - ADR .......................... 297,950
6,000 Kyocera Corp. ............................... 282,955
50,000 Racal Electronics PLC ....................... 260,613
7,110 Schneider SA ................................ 436,783
8,000 Siemens AG .................................. 556,456
7,000 Siemens AG - ADR ............................ 497,226
25,000 Yokogawa Electric ........................... 124,188
-----------
2,756,901
-----------
FINANCE COMPANIES - 3.35%
30,000 Abbey National .............................. 608,647
44,427 ABN Amro Holdings NV ........................ 915,222
38,879 Allied Zurich ............................... 554,715
9,907 Allied Zurich Plc ........................... 285,842
126 Credit Local de France ...................... 18,892
8,286 Fortis Amev NV .............................. 608,707
20,578 ING Groep NV ................................ 1,178,160
3,984 Societe Generale ............................ 627,446
-----------
4,797,631
-----------
FOODS - 3.19%
25,000 Ajinomoto Inc. .............................. 226,867
22,222 Cadbury Schweppes PLC ....................... 333,552
3,929 Cadbury Schweppes PLC - ADR ................. 237,213
10,000 Daiei, Inc. ................................. 26,705
11,500 Daiei, Inc. - ADR ........................... 58,937
100,000 Golden Hope Plantations ..................... 82,105
1,000 Groupe Danone ............................... 291,781
30,000 Nestle SA - ADR ............................. 3,126,144
30,750 Tate & Lyle PLC ............................. 193,753
----------
4,577,057
----------
FOOTWEAR - 0.11%
1,500 Adidas AG ................................... 163,577
----------
FREIGHT - 0.68%
98,000 Mitsui Osk Lines Ltd. ....................... 158,296
40,000 Nippon Yusen Kabushiki Kaish ................ 121,753
8,570 Nippon Yusen Kabushiki Kaish - ADR .......... 261,450
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
FREIGHT - Continued
35,178 P & O Steam Navigation ...................... $ 426,479
----------
967,978
----------
HOME BUILDERS - 0.32%
214 Sekisui Homes Ltd. - ADR .................... 20,857
20,000 Sekisui House, Ltd. ......................... 194,480
9,000 Skanska AB .................................. 249,939
----------
465,276
----------
HOUSEHOLD PRODUCTS - 0.95%
7,000 Katokichi Co. ............................... 100,682
16,400 Unilever N V- ADR ........................... 1,267,925
----------
1,368,607
----------
INFORMATION PROCESSING - 1.16%
1,200* Cap Gemini .................................. 175,490
14,000 Fujitsu Ltd. ................................ 161,591
7,200 Fujitsu Ltd. - ADR .......................... 416,466
2,000 SAP AG ...................................... 905,420
----------
1,658,967
----------
INSURANCE - CASUALTY - 0.31%
25,000 Mitsui Marine & Fire ........................ 126,015
50,000 Nippon Fire & Marine Insurance .............. 171,266
25,000 Sumitomo Marine & Fire ...................... 149,148
----------
446,429
----------
INSURANCE - LIFE - 1.43%
67,514* Irish Life PLC .............................. 561,560
2,500* Mundial Confianca ........................... 81,769
15,240 Prudential PLC - ADR ........................ 1,119,404
20,000* Skandia Forsakring .......................... 283,854
----------
2,046,587
----------
INSURANCE - MULTILINE - 4.01%
3,088 Allianz AG .................................. 1,111,276
27,313 Assic Generali .............................. 1,019,512
10,962 AXA ......................................... 1,416,204
1,560 Munchener Ruckvers .......................... 717,263
60* Munchener Ruckvers .......................... 2,511
56,462 Royal Sun Alliance .......................... 471,244
400 Swiss Reinsurance AG ........................ 1,010,671
----------
5,748,681
----------
</TABLE>
<PAGE> 40
================================================================================
INTERNATIONAL EQUITIES FUND - STATEMENT OF NET ASSETS CONTINUED
38 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
LEISURE TIME - 1.08%
20,000 Canon, Inc. - ADR ........................... $ 443,750
15,000 Fuji Photo .................................. 560,065
54,585 Ladbroke Group PLC .......................... 211,133
90,053 Rank Group .................................. 337,180
----------
1,552,128
----------
LODGING - 0.24%
297,916 Hong Kong & Shanghai Hotels ................. 246,243
22,916* Hong Kong & Shanghai Hotels
(Warrants) ................................. 30
180,000 Hotel Properties ............................ 94,392
----------
340,665
----------
MACHINE TOOLS - 0.43%
35,000 Amada Co., Ltd. ............................. 174,716
16,000 Makita Corp. - ADR .......................... 179,000
25,000 Minebea Co. Ltd. ............................ 268,466
----------
622,182
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.82%
3,501 Algeco ...................................... 296,611
2,000 Groupe Gtm .................................. 225,691
2,000 Jean Lefebvre SA ............................ 183,154
52,000 Kajima Corp. ................................ 138,442
2,340 Kajima Corp. - ADR .......................... 62,441
16,000* Kumagai Gumi Co (Warrants) .................. 1,467
80,000 Kumagai Gumi Co. ............................ 35,903
70,000 Shimizu Corp. ............................... 230,114
----------
1,173,823
----------
MACHINERY - INDUSTRIAL/
SPECIALTY - 2.38%
10,000 Atlas Copco AB Series A ..................... 227,943
125 Bobst SA .................................... 170,092
61,837 British Aerospace ........................... 531,404
8,000 Ebara Corp. ................................. 67,013
2,530 Ebara Corp. - ADR ........................... 212,411
100,000 Halma PLC ................................... 194,635
50,000 Kawasaki Heavy Industries ................... 123,377
70,000 Kubota Corp. ................................ 161,364
1,350 Kubota Corp. - ADR .......................... 63,112
750 Man AG ...................................... 212,650
10,000 Mannesmann AG ............................... 1,081,671
612 Rauma Oy .................................... 8,601
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
MACHINERY - INDUSTRIAL/
SPECIALTY - Continued
101,468 Siebe PLC ................................... $ 365,277
----------
3,419,550
----------
MEDICAL TECHNOLOGY - 0.02%
20,000* Instrumentation Laboratory S. P. A .......... 22,500
----------
MERCHANDISE - SPECIALTY - 1.38%
43,020 BAA PLC ..................................... 475,427
10,000 Esselte AB Series B ......................... 156,058
35,000 Great Universal Stores PLC .................. 363,992
10,000 Hennes and Mauritz .......................... 738,511
1,500* Herlitz AG .................................. 58,402
3,000 Metro AG .................................... 187,008
----------
1,979,398
----------
MERCHANDISING -
DEPARTMENT - 0.94%
500 Karstadt AG ................................. 234,313
15,311 Marks & Spencer PLC ......................... 104,049
15,033 Marks & Spencer PLC - ADR ................... 621,950
16,000 Marui Co., Ltd. ............................. 285,065
36,000 Mitsukoshi Ltd. ............................. 100,227
200 Mitsukoshi Ltd. - ADR ....................... 5,581
----------
1,351,185
----------
MERCHANDISING - FOOD - 1.84%
16,078 Ahold Kon Nv ................................ 557,356
1,550 Carrefour SA ................................ 1,096,595
10,000 Delhaize-Le Lion, SA ........................ 820,211
15,000 Melco International Development
Limited .................................... 1,395
10,000 Uny Co. Ltd. ................................ 167,208
----------
2,642,765
----------
MERCHANDISING - MASS - 0.86%
4,356 Familymart Co. .............................. 211,082
10,200 Ito-Yokado Co. Ltd. - ADR ................... 633,675
6,500 Jeronimo Martins SGPS ....................... 318,714
20,000 Seiyu Ltd. .................................. 66,396
----------
1,229,867
----------
METALS - MISCELLANEOUS - 1.04%
200* Alusuisse Lonza Holdings .................... 252,095
113,049 North Ltd. .................................. 211,682
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ----------
<S> <C> <C>
METALS - MISCELLANEOUS - Continued
8,062 Rio Tinto Limited ........................... $ 415,690
13,132 Rio Tinto PLC ............................... 396,926
67,410 Western Mining .............................. 212,590
----------
1,488,983
----------
METALS - STEEL - 0.50%
500 Bekaert SA .................................. 268,640
36,700 British Steel PLC ........................... 59,324
2,000 British Steel PLC - ADR ..................... 34,250
78,000 Sumitomo Metal Industries Ltd. .............. 93,068
50,000 Sumitomo Metal Mining ....................... 180,195
2,000 Vallourec Usin .............................. 81,031
----------
716,508
----------
MISCELLANEOUS - 0.69%
8,000 Secom Co. ................................... 591,558
15,718 Tnt Post Groep NV ........................... 395,303
----------
986,861
----------
OIL - INTEGRATED
INTERNATIONAL - 5.35%
27,866 British Petroleum Co. PLC - ADR ............. 2,567,155
16,946 Elf Aquitaine SA - ADR ...................... 1,054,889
225,000 Eni S.P.A ................................... 1,395,074
10,000 Repsol SA - ADR ............................. 561,250
20,392 Royal Dutch Pete Co. ........................ 958,424
9,207 Total ....................................... 1,140,922
----------
7,677,714
----------
OIL/GAS PRODUCERS - 0.45%
2,505 Fletcher Challenge Energy Division .......... 51,196
3,500 Norsk Hydro A/S - ADR ....................... 128,187
3,000 OMV AG ...................................... 282,794
62,500 Santos Ltd. ................................. 181,240
----------
643,417
----------
PAPER/FOREST PRODUCTS - 0.73%
150,801 Fletcher Challenge Forest Ltd. .............. 57,149
4,326 Fletcher Challenge Ltd. - ADR ............... 16,493
5,010 Fletcher Challenge Paper Division ........... 31,939
22,000 New Oji Paper Co., Ltd. ..................... 98,750
300 New Oji Paper Co., Ltd. - ADR ............... 13,496
60,000 Nippon Paper Industries ..................... 256,656
</TABLE>
<PAGE> 41
================================================================================
INTERNATIONAL EQUITIES FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1998 (Unaudited) 39
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
PAPER/FOREST PRODUCTS - Continued
22,000 UPM - Kymmene Corp. ......................... $ 575,749
-----------
1,050,232
-----------
PUBLISHING - NEWS - 0.71%
51,211 Independent Newspapers PLC .................. 183,783
22,500 News Corp Ltd. - ADR ........................ 630,000
21,379 United News & Media PLC ..................... 206,468
-----------
1,020,251
-----------
PUBLISHING/PRINTING - 0.68%
43,333 Reuters Group ............................... 418,489
20,000 Trelleborg AB ............................... 168,346
2,040 Wolters Kluwer NV ........................... 388,790
-----------
975,625
-----------
RAILROAD - 0.65%
30,000 Fukuyama Transporting Co. ................... 135,390
9,218 Nagoya Railroad Co. Ltd. - ADR .............. 307,466
101,970 Odakyu Electric Railway Co. Ltd. ............ 331,072
60,000 Tokyu Corp. ................................. 157,305
-----------
931,233
-----------
REAL ESTATE - 1.54%
6,000* Asticus AB .................................. 50,872
12,000 Diligentia .................................. 80,364
9,000* Drott AB .................................... 71,332
35,000 Great Portland Est .......................... 111,132
42,102 Hammerson PLC ............................... 268,058
240,000 Hang Lung Development Co. ................... 277,412
43,000 Mitsubishi Estate Co. Ltd. .................. 410,454
35,000 Mitsui Fudosan .............................. 268,182
26,634 New World Development Co. ................... 64,667
83,597 Sun Hung Kai Properties Ltd. ................ 599,204
-----------
2,201,677
-----------
SECURITIES RELATED - 0.33%
25,000 Daiwa Securities Co. Ltd. ................... 89,083
2,137 Garban ...................................... 8,354
3,800 Nomura Securities Co. Ltd. - ADR ............ 370,045
160,000* Peregrine Investment Holdings Ltd. .......... 0
6,000* Yamaichi Securities Co. Ltd. - ADR .......... 0
-----------
467,482
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
TELECOMMUNICATIONS - 11.81%
3,000 Alcatel Alst Cge ............................ $ 396,541
36,037 British Telecommunications PLC .............. 493,666
11,379 British Telecommunications PLC
- ADR ...................................... 1,573,147
46,602 Cable & Wireless PLC ........................ 591,881
40,000 Deutsche Telekom ............................ 1,122,344
15,000 France Telecom .............................. 1,041,447
30,600 Hong Kong Telecommunications Ltd.
- ADR ...................................... 575,662
15,621 Kon Kpn NV .................................. 673,829
5,000* Netcom Asa .................................. 130,217
300 Nippon Tel+Tel Cp ........................... 2,240,260
12,000 Nokia Ab Oy ................................. 1,174,760
18* Ntt Mobile Communications ................... 686,688
2,600 Telecom Corp. of New Zealand Ltd.
- ADR ...................................... 87,262
250,000 Telecom Italia Mobile ....................... 1,637,148
106,111 Telecom Italia SPA .......................... 859,438
20,400 Telefonaktiebolage & LM Ericsson
Class B - ADR .............................. 563,550
14,000 Telefonica de Espana ........................ 657,568
6,290 Telefonica de Espana - ADR .................. 876,669
115,000 Telekom Malaysia Berhad ..................... 225,461
9,000 Vodafone Group PLC - ADR .................... 1,329,187
-----------
16,936,725
-----------
TEXTILE - PRODUCTS - 0.26%
20,000 Courtaulds Textiles PLC ..................... 51,133
15,000 Marzotto & Figli S.P.A ...................... 155,380
15,000 Wacoal Corp. ................................ 169,359
------------
375,872
------------
TOBACCO - 0.45%
38,879 British America Tobacco ..................... 356,396
9,908 British American Tobacco PLC ................ 185,775
32,000 Swedish Match AB ............................ 108,135
------------
650,306
------------
UTILITIES - COMMUNICATION - 0.20%
1,500 Telecel Comuni Pes .......................... 293,162
------------
UTILITIES - ELECTRIC - 3.87%
55,000 Clp Holdings ................................ 289,100
48,000 Endesa SA ................................... 1,248,000
6,500 Hidroel Cantabrico .......................... 314,306
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- ------------
<S> <C> <C>
UTILITIES - ELECTRIC - Continued
30,000 Iberdrola SA ................................ $ 496,709
16,600 Kansai Electric Power Co. Inc. .............. 332,808
62,265 National Power .............................. 529,947
2,000 Oesterreichisch Elektrizitatswirt
Schafts - AG Class A ....................... 311,701
10,000 RWE AG - ADR ................................ 533,482
48,488 Scottish Power PLC .......................... 514,262
95,000 Tenaga Nasional Berhad ...................... 126,250
25,200 Tokyo Electric Power ........................ 574,773
5,000 VEBA AG ..................................... 277,049
------------
5,548,387
------------
UTILITIES - GAS, DISTRIBUTION - 0.47%
44,117 Bg .......................................... 302,354
127,000 Osaka Gas Co. ............................... 371,104
------------
673,458
------------
UTILITIES - MISCELLANEOUS - 0.18%
1,500* Tractebel Inv Intl .......................... 257,209
------------
WATER SERVICES - 2.00%
6,349 Eaux (Cie Generale) ......................... 1,435,143
10,196* Eaux (Cie Generale) (Warrants) ............. 20,610
22,242 Hyder PLC ................................... 299,000
24,186 Thames Water ................................ 462,367
45,184 United Utilities PLC ........................ 658,087
------------
2,875,207
------------
TOTAL COMMON STOCKS
(Cost $110,042,347) ........................ 142,796,634
------------
</TABLE>
<PAGE> 42
================================================================================
INTERNATIONAL EQUITIES FUND - STATEMENT OF NET ASSETS CONTINUED
40 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- --------- ------------
<S> <C> <C>
UNITED STATES GOVERNMENT -
SHORT TERM - 0.24%
U.S. TREASURY BILLS - 0.24%
United States Treasury Bills,
$ 25,000 4.20% due 12/31/98 ......................... $ 24,912
200,000 4.17% due 1/14/99 .......................... 198,981
125,000 4.00% due 12/24/98 ......................... 124,680
------------
348,573
------------
TOTAL UNITED STATES GOVERNMENT -
SHORT TERM
(Cost $348,573) ............................. 348,573
------------
TOTAL INVESTMENTS
(Cost $110,390,920) - 99.80% ................ 143,145,207
Other assets less liabilities,
net - 0.20% ................................ 281,881
------------
NET ASSETS (equivalent
to $11.84 per share on
12,109,576 shares
outstanding) - 100% ........................ $143,427,088
============
* Non-income producing
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
- --------- ------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/98)
10 (2) Nikkei 225 Futures
(December/$119.52)............ $ 38,504
============
(1)U.S.Treasury Bills with a market value
of approximately $315,000 were maintained
in a segregated account with a portion
placed as collateral for futures contracts.
(2)Per 500
</TABLE>
<TABLE>
<S> <C> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
12,109,576 shares outstanding ....................... $ 121,096
Additional paid in capital ............................ 96,372,480
Accumulated net realized gain on securities ........... 13,830,664
Undistributed net investment income ................... 304,432
Unrealized appreciation of:
Investments ............................ $ 32,754,287
Futures ................................ 38,504
------------
Foreign currency translation ........... 5,625 32,798,416
------------ ------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING ......................................... $143,427,088
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 43
================================================================================
INTERNATIONAL EQUITIES FUND - FINANCIAL STATEMENTS (Unaudited)
41
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $130,620) ............................ $ 1,213,679
Interest ............................................................................ 576,660
------------
Total investment income ........................................................... 1,790,339
------------
EXPENSES:
Advisory fees ....................................................................... 251,837
Custodian and accounting services ................................................... 17,433
Reports to shareholders ............................................................. 12,299
Audit fees and tax services ......................................................... 2,076
Directors' fees and expenses ........................................................ 2,101
Miscellaneous ....................................................................... 10,982
------------
Total expenses .................................................................... 296,728
------------
NET INVESTMENT INCOME ............................................................... 1,493,611
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments ........................................................ $ 3,402,683
Foreign currency transactions ...................................... 89,625
Futures contracts .................................................. (254,834) 3,237,474
------------
Net unrealized appreciation (depreciation) during the period:
Investments ........................................................ (4,904,562)
Foreign currency translation ....................................... 23,673
Futures contracts .................................................. 159,813 (4,721,076)
------------ ------------
Net realized and unrealized loss on securities and
foreign currencies during the period ............................................ (1,483,602)
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .................................... $ 10,009
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ..................................................... $ 1,493,611 $ 3,180,171
Net realized gain on securities and foreign currency transactions ......... 3,237,474 10,927,955
Net unrealized appreciation (depreciation) of securities and
translation of foreign currencies during the period ...................... (4,721,076) 1,477,313
------------- -------------
Increase in net assets resulting from operations ....................... 10,009 15,585,439
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ..................................................... (1,657,996) (3,388,878)
Net realized gain on securities ........................................... -- (4,595,687)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders ........................................................ (1,657,996) (7,984,565)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold .......................................... 30,621,540 58,848,665
Proceeds from capital stock issued for distributions reinvested ........... 1,657,996 7,984,565
------------- -------------
32,279,536 66,833,230
Cost of capital stock repurchased ......................................... (42,673,628) (100,401,920)
------------- -------------
Decrease in net assets resulting from capital stock transactions ........ (10,394,092) (33,568,690)
------------- -------------
TOTAL DECREASE IN NET ASSETS .............................................. (12,042,079) (25,967,816)
NET ASSETS:
Beginning of period ....................................................... 155,469,167 181,436,983
------------- -------------
End of period (including undistributed net investment income
of $304,432 and $468,817) ............................................... $ 143,427,088 $ 155,469,167
------------- -------------
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold .............................................. 2,661,161 5,111,681
Shares issued for distributions reinvested ................................ 144,082 728,332
Shares of capital stock repurchased ....................................... (3,704,943) (8,688,179)
------------- -------------
Decrease in shares outstanding .......................................... (899,700) (2,848,166)
Shares outstanding:
Beginning of period ..................................................... 13,009,276 15,857,442
------------- -------------
End of period ........................................................... 12,109,576 13,009,276
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 44
===============================================================================
GROWTH FUND - STATEMENT OF NET ASSETS
42 November 30, 1998 (Unaudited)
===============================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------ -------------
<S> <C> <C>
COMMON STOCKS - 94.47%
ADVERTISING - 4.93%
435,000* ADVO, Inc. ................................... $11,255,625
330,000* Catalina Marketing Corp. ..................... 19,222,500
900,000 Outdoor Systems Inc. ......................... 24,300,000
-----------
54,778,125
-----------
APPAREL & PRODUCTS - 0.76%
150,000* Abercrombie and Fitch Co. .................... 8,400,000
-----------
AUTO - CARS - 1.18%
623,500* Avis Rent A Car Inc. ......................... 13,132,478
-----------
AUTO - REPLACEMENT PARTS - 1.73%
637,500* AutoZone, Inc. ............................... 19,204,687
-----------
BANKS - OTHER - 1.46%
450,000 Wells Fargo Co. .............................. 16,200,000
-----------
BROADCASTING - 8.04%
600,000* Chancellor Media Corp. Class A ............... 22,612,500
550,000 Comcast Corp. Class A Special ................ 26,743,750
285,000 Jacor Communications, Inc. ................... 16,583,437
580,000 Tele-Comm Liberty Media Group
Class A .................................... 23,381,250
-----------
89,320,937
-----------
ENTERTAINMENT - 2.98%
480,100 Carnival Corp. Class A ....................... 16,563,450
700,000* Fox Entertainment Group Class A .............. 16,537,500
-----------
33,100,950
-----------
FINANCE COMPANIES - 1.65%
235,000 Associates First Capital Corp. ............... 18,300,625
-----------
FINANCIAL SERVICES - 2.32%
800,000 CIT Group Inc. ............................... 22,450,000
139,700 Waddell & Reed Financial, Inc. ............... 3,265,487
-----------
25,715,487
-----------
FUNERAL SERVICES - 0.93%
275,000 Service Corp. International .................. 10,278,125
-----------
GOVERNMENT SPONSORED - 4.01%
465,000 Federal Home Loan Mortgage Corp .............. 28,132,500
225,000 Federal National Mortgage Association ........ 16,368,750
-----------
44,501,250
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------ -------------
<S> <C> <C>
HEALTHCARE - 3.43%
64,200 Cardinal Health, Inc. ........................ $ 4,405,725
490,000 Quorum Health Group Inc. ..................... 8,146,250
750,000* Total Renal Care Holdings .................... 19,921,875
125,000 United HealthCare Corp. ...................... 5,640,625
-----------
38,114,475
-----------
HOSPITAL MANAGEMENT - 0.78%
735,000* Concentra Managed Care, Inc. ................. 8,682,188
-----------
HOUSEHOLD PRODUCTS - 0.21%
108,400 ServiceMaster Co. ............................ 2,330,600
-----------
HUMAN RESOURCES - 3.81%
700,000 Interim Services Inc. ........................ 14,525,000
630,000* Metamor Worldwide, Inc. ...................... 14,923,125
1,075,000* Modis Professional Services .................. 12,832,813
-----------
42,280,938
-----------
INFORMATION PROCESSING - 1.49%
700,000* Acxiom Corp. ................................. 16,537,500
-----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 4.54%
500,000 First Data Corp. ............................. 13,343,750
525,000* Gartner Group, Inc. Class A .................. 11,353,125
200,000 Paychex, Inc. ................................ 9,950,000
492,800* SunGard Data Systems, Inc. ................... 15,769,600
-----------
50,416,475
-----------
INFORMATION PROCESSING -
DATA SERVICES - 8.32%
555,000* Affiliated Computer Services Class A ......... 21,263,438
420,000* BISYS Group, Inc. ............................ 20,212,500
1,625,000* Cendant Corp. ................................ 30,875,000
500,000 Galileo International Inc. ................... 20,000,000
-----------
92,350,938
-----------
INSURANCE - MISCELLANEOUS - 1.76%
305,000 Ace Limited .................................. 9,760,000
222,500 MGIC Investment Corp. ........................ 9,776,094
-----------
19,536,094
-----------
INSURANCE - MULTILINE - 0.70%
24,300* Fairfax Financial Holdings Ltd. .............. 7,772,175
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------ -------------
<S> <C> <C>
LEISURE TIME - 1.47%
600,000* Premier Parks, Inc. .......................... $ 16,275,000
-----------
LODGING - 0.86%
950,000* Extended Stay America, Inc. .................. 9,500,000
-----------
MERCHANDISE - SPECIALTY - 11.96%
475,000 Circuit City Stores, Inc. .................... 17,189,063
555,000* Cole National Corp. Class A .................. 8,567,812
450,000* Corporate Express, Inc. ...................... 2,643,750
320,000* CostCo Companies, Inc. ....................... 20,080,000
850,000* General Nutrition Cos., Inc. ................. 15,087,500
420,000 Home Depot, Inc. ............................. 20,895,000
91,500* Kohl's Corp. ................................. 4,500,656
975,000* Office Depot, Inc. ........................... 31,687,500
411,900* Williams-Sonoma, Inc. ........................ 12,176,794
-----------
132,828,075
-----------
MERCHANDISING - DEPARTMENT - 0.62%
250,000* Saks Inc. .................................... 6,875,000
-----------
MERCHANDISING - FOOD - 0.94%
198,500* Safeway, Inc. ................................ 10,483,281
-----------
MERCHANDISING - MASS - 1.83%
400,000 Fred Meyer, Inc. ............................. 20,350,000
-----------
MISCELLANEOUS - 2.36%
85,000* Apollo Group Inc Class A ..................... 2,741,250
313,300* Coach USA, Inc. .............................. 8,889,888
500,000* Sylvan Learning Systems, Inc. ................ 14,531,280
-----------
26,162,418
-----------
OIL - SERVICES - 1.76%
304,700 Schlumberger Ltd. ............................ 13,616,281
245,000* Smith International, Inc. .................... 5,910,625
-----------
19,526,906
-----------
POLLUTION CONTROL - 3.75%
634,000* Allied Waste Industries, Inc. ................ 12,917,750
670,000 Waste Management, Inc. ....................... 28,726,250
-----------
41,644,000
-----------
PUBLISHING - NEWS - 1.18%
205,000 Tribune Co. .................................. 13,145,625
-----------
</TABLE>
<PAGE> 45
===============================================================================
GROWTH FUND - STATEMENT OF NET ASSETS
November 30, 1998 (Unaudited) 43
===============================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------ ---------------
<S> <C> <C>
RESTAURANTS - 1.59%
496,300* Outback Steakhouse Inc. ...................... $ 17,618,650
--------------
SECURITIES RELATED - 3.74%
580,000 Franklin Resources, Inc. ..................... 24,795,000
240,000 Morgan Stanley, Dean Witter,
Discover and Co. ........................... 16,740,000
--------------
41,535,000
--------------
TELECOMMUNICATIONS - 7.38%
540,000* Airtouch Communications, Inc. ................ 30,881,250
608,719* MCI Worldcom Inc. ............................ 35,914,421
540,900 Paging Network, Inc. ......................... 3,346,716
650,000 Western Wireless Corp. Class A ............... 11,781,250
--------------
81,923,637
--------------
TOTAL COMMON STOCKS
(Cost $810,057,645) .......................... 1,048,821,639
--------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------ ---------------
<S> <C> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 5.11%
CONGLOMERATES - 0.34%
$3,788,000 PHH Corp.,
5.40% due 12/07/1998 ....................... $ 3,784,590
--------------
FINANCE COMPANIES - 1.93%
General Electric Capital Services Inc.:
7,446,000 4.80% due 12/02/1998 ....................... 7,445,006
14,007,000 4.75% due 12/01/1998 ....................... 14,007,000
--------------
21,452,006
--------------
UTILITIES - ELECTRIC - 2.84%
5,000,000 Conagra,
5.52% due 12/02/1998 ....................... 14,997,700
Pacific Gas & Electric Co.:
11,000,000 5.06% due 12/03/1998 ....................... 10,996,907
5,500,000 5.06% due 12/04/1998 ....................... 5,497,635
--------------
31,492,242
--------------
TOTAL CORPORATE SHORT
TERM COMMERCIAL PAPER
(Cost $56,728,838) ........................... 56,728,838
--------------
TOTAL INVESTMENTS
(Cost $866,786,483) - 99.58% ................. 1,105,550,477
Other assets less liabilities,
net - 0.42% ................................ 4,657,422
--------------
NET ASSETS (equivalent
to $21.35 per share on
52,006,265 shares
outstanding) - 100% ........................ $1,110,207,899
==============
* Non-income producing
</TABLE>
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
52,006,265 shares outstanding .............. $ 520,063
Additional paid in capital ................... 816,868,419
Accumulated net realized gain on securities .. 56,869,960
Accumulated net investment loss .............. (2,814,537)
Unrealized appreciation of securities ........ 238,763,994
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING ................................ $ 1,110,207,899
===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 46
===============================================================================
GROWTH FUND - FINANCIAL STATEMENTS (Unaudited)
44
===============================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends ...................................................................... $ 1,517,518
Interest ....................................................................... 1,365,639
------------
Total investment income ...................................................... 2,883,157
------------
EXPENSES:
Advisory fees .................................................................. 4,292,928
Custodian and accounting services .............................................. 128,931
Reports to shareholders ........................................................ 90,343
Audit fees and tax services .................................................... 20,532
Directors' fees and expenses ................................................... 15,363
Miscellaneous .................................................................. 33,815
------------
Total expenses ............................................................... 4,581,912
------------
NET INVESTMENT LOSS ............................................................ (1,698,755)
------------
REALIZED AND UNREALIZED GAIN(LOSS) ON SECURITIES:
Net realized gain (loss) on:
Investments ............................................... $ 5,531,209
Foreign currency translation .............................. (316,974) 5,214,235
Net unrealized depreciation of securities during the period: ------------
Investments ............................................... $(40,733,659)
Foreign currency translation .............................. (672,665) (41,406,324)
------------ ------------
Net realized and unrealized loss on securities and
foreign currencies during the period ........................................ (36,192,089)
------------
DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................... $(37,890,844)
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss .............................................. $ (1,698,755) $ (1,052,032)
Net realized gain on securities .................................. 5,214,235 52,174,007
Net unrealized appreciation (depreciation) of securities
during the period ............................................. (41,406,324) 165,960,273
--------------- ---------------
Increase (decrease) in net assets resulting from operations .... (37,890,844) 217,082,248
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................................ -- (303,215)
Net realized gain on securities .................................. -- (15,121,487)
--------------- ---------------
Decrease in net assets resulting from distributions
to shareholders ............................................... -- (15,424,702)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ................................. 60,159,807 155,432,936
Proceeds from capital stock issued for distributions reinvested .. -- 15,424,702
--------------- ---------------
60,159,807 170,857,638
Cost of capital stock repurchased ................................ (12,198,127) (20,032,134)
--------------- ---------------
Increase in net assets resulting from capital stock transactions 47,961,680 150,825,504
--------------- ---------------
TOTAL INCREASE IN NET ASSETS ..................................... 10,070,836 352,483,050
NET ASSETS:
Beginning of period .............................................. 1,100,137,063 747,654,013
--------------- ---------------
End of period (including accumulated net investment loss
of $(2,814,537) and $(1,115,782)) .............................. $ 1,110,207,899 $ 1,100,137,063
=============== ===============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ..................................... 2,805,115 7,600,994
Shares issued for distributions reinvested ....................... -- 769,312
Shares of capital stock repurchased .............................. (631,109) (959,921)
--------------- ---------------
Increase in shares outstanding ................................. 2,174,006 7,410,385
Shares outstanding:
Beginning of period ............................................ 49,832,259 42,421,874
--------------- ---------------
End of period .................................................. 52,006,265 49,832,259
--------------- ---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 47
===============================================================================
GROWTH & INCOME FUND - STATEMENT OF NET ASSETS
NOVEMBER 30, 1998 (UNAUDITED) 45
===============================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
COMMON STOCKS - 87.49%
ADVERTISING - 1.58%
76,000 Omnicom Group, Inc........................... $ 4,061,250
-----------
AUTO - CARS - 1.06%
65,000 Harley-Davidson, Inc. ....................... 2,717,813
-----------
BANKS - NEW YORK CITY - 1.27%
65,000 Citigroup Inc. .............................. 3,262,188
-----------
BANKS - OTHER - 2.18%
60,000 Mellon Bank Corp. ........................... 3,776,250
50,000 Wells Fargo Co. ............................. 1,800,000
-----------
5,576,250
-----------
BANKS - REGIONAL - 4.47%
30,000 Fifth Third Bancorp ......................... 1,991,250
54,000 Firstar Corp. ............................... 3,955,500
40,000 State Street Corp. .......................... 2,745,000
55,000 Zions Bancorporation ........................ 2,777,500
-----------
11,469,250
-----------
BROADCASTING - 2.01%
110,000* Clear Channel Communications ................ 5,142,500
-----------
BUILDING MATERIALS - 0.66%
40,000 Lowe's Companies, Inc. ...................... 1,690,000
-----------
CHEMICAL - MAJOR - 0.01%
600 Hercules, Inc. .............................. 19,725
-----------
CONGLOMERATES - 1.36%
45,000 Dial Corp. .................................. 1,181,250
35,000 Tyco International Ltd. ..................... 2,303,438
-----------
3,484,688
-----------
CONTAINERS - METAL/GLASS - 0.82%
65,000* Owens-Illinois, Inc. ........................ 2,088,125
-----------
DRUGS - 11.10%
60,000 Eli Lilly and Co. ........................... 5,381,250
50,000 McKesson Corp. .............................. 3,559,375
20,000 Merck & Co., Inc. ........................... 3,097,500
61,000 Pfizer, Inc. ................................ 6,809,125
30,000 Schering-Plough Corp. ....................... 3,191,250
60,000 Warner-Lambert Co. .......................... 4,530,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
DRUGS - Continued
35,000* Watson Pharmaceuticals, Inc.................. $ 1,885,625
-----------
28,454,125
-----------
ELECTRICAL EQUIPMENT - 1.41%
40,000 General Electric Co. ........................ 3,620,000
-----------
FINANCE COMPANIES - 2.52%
40,000 Finova Group, Inc. .......................... 2,112,500
55,000 SunAmerica, Inc. ............................ 4,358,750
-----------
6,471,250
-----------
FOODS - 0.90%
50,000* U. S. Foodservice ........................... 2,296,875
-----------
GOVERNMENT SPONSORED - 1.49%
39,100 Federal Home Loan Mortgage Corp. ............ 2,365,550
20,000 Federal National Mortgage
Association ............................... 1,455,000
-----------
3,820,550
-----------
HEALTHCARE - 1.81%
67,500 Cardinal Health, Inc. ....................... 4,632,188
-----------
HOME BUILDERS - 1.39%
100,000 Centex Corp. ................................ 3,568,750
-----------
HOSPITAL SUPPLIES - 1.88%
30,000 Johnson & Johnson ........................... 2,437,500
35,000 Medtronic, Inc. ............................. 2,369,062
-----------
4,806,562
-----------
HOUSEHOLD PRODUCTS - 2.95%
85,000* Bed Bath & Beyond, Inc. ..................... 2,650,937
25,000 Clorox Co. .................................. 2,776,562
25,000 Colgate-Palmolive Co. ....................... 2,140,625
-----------
7,568,124
-----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 4.05%
100,000* BMC Software, Inc. .......................... 5,106,250
25,000* Microsoft Corp. ............................. 3,050,000
65,000* Oracle Corp. ................................ 2,226,250
-----------
10,382,500
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
INFORMATION PROCESSING -
COMPUTER HARDWARE
SYSTEMS - 3.39%
80,000 Compaq Computer Corp......................... $ 2,600,000
100,000* Dell Computer Corp. ......................... 6,081,250
-----------
8,681,250
-----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 1.71%
50,000* America Online, Inc. ........................ 4,378,125
-----------
INFORMATION PROCESSING -
DATA SERVICES - 7.65%
75,000 Computer Associates International 3,318,750
110,000* E M C Corp. ................................. 7,975,000
57,000* Electronic Arts ............................. 2,401,125
20,000 International Business Machine .............. 3,300,000
75,000* Storage Technology Corp. .................... 2,625,000
-----------
19,619,875
-----------
INFORMATION PROCESSING -
NETWORKING - 2.32%
78,750 Cisco Systems, Inc. ......................... 5,935,781
-----------
INSURANCE - LIFE - 0.52%
40,000 Conseco Inc. ................................ 1,325,000
-----------
INSURANCE - MULTILINE -1.10%
30,000 American International Group Inc ............ 2,820,000
-----------
MACHINERY -
INDUSTRIAL/SPECIALTY - 1.62%
36,000 Illinois Tool Works Inc. .................... 2,288,250
40,000 Ingersoll-Rand Co. .......................... 1,872,500
-----------
4,160,750
MEDICAL TECHNOLOGY - 1.34%
40,000 Guidant Corp. ............................... 3,432,500
-----------
MERCHANDISE - SPECIALTY - 5.77%
45,000* CostCo Companies, Inc. ...................... 2,823,750
40,000 Gap, Inc. ................................... 2,942,500
40,000 Home Depot, Inc. ............................ 1,990,000
45,000* Kohl's Corp. ................................ 2,213,438
100,000* Staples, Inc. ............................... 3,493,750
</TABLE>
<PAGE> 48
===============================================================================
GROWTH & INCOME FUND - STATEMENT OF NET ASSETS CONTINUED
46 NOVEMBER 30, 1998 (UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -------------
<S> <C> <C>
MERCHANDISE - SPECIALTY - Continued
45,000* Williams-Sonoma, Inc. ....................... $ 1,330,312
-------------
14,793,750
-------------
MERCHANDISING -
DEPARTMENT - 2.00%
114,000 Dayton Hudson Corp. ......................... 5,130,000
-------------
MERCHANDISING - FOOD - 2.44%
45,000 Albertsons, Inc. ............................ 2,567,812
70,000* Safeway, Inc. ............................... 3,696,875
-------------
6,264,687
-------------
MERCHANDISING - MASS - 1.03%
35,000 Wal-Mart Stores, Inc. ....................... 2,635,938
-------------
OIL - SERVICES - 0.72%
75,000 Transocean Offshore, Inc. ................... 1,851,563
-------------
SECURITIES RELATED - 1.21%
55,000 Charles Schwab Corp. ........................ 3,100,625
-------------
SEMICONDUCTORS - 1.26%
30,000 Intel Corp. ................................. 3,228,750
-------------
TELECOMMUNICATIONS - 5.62%
50,000* Airtouch Communications, Inc. ............... 2,859,375
20,000 Lucent Technologies, Inc. ................... 1,721,250
75,000* MCI Worldcom Inc. ........................... 4,425,000
100,000* Tellabs, Inc. ............................... 5,406,250
-------------
14,411,875
-------------
TOBACCO - 1.09%
50,000 Philip Morris Cos Inc. ...................... 2,796,875
-------------
UTILITIES - ELECTRIC - 1.78%
100,000* AES Corp. ................................... 4,575,000
-------------
TOTAL COMMON STOCKS
(Cost $150,626,195) ......................... 224,275,057
-------------
PREFERRED STOCK - 1.34%
20,000 IXC Communications, Inc. .................... 585,000
20,000 NEXTLINK Communications, Inc. ............... 865,000
20,000 QUALCOMM FINANCIAL .......................... 937,500
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -------------
<S> <C> <C>
PREFERRED STOCK - Continued
40,000 Intermedia Communications, Inc
7.00% Series 144A .......................... $ 645,000
20,000 Omnipoint Corp. 7.00% ....................... 412,500
-------------
3,445,000
-------------
TOTAL PREFERRED STOCK
(Cost $4,741,875) ........................... 3,445,000
-------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- --------- -------------
<S> <C> <C>
CONVERTIBLE BONDS - 4.97%
ADVERTISING - 0.41%
$1,000,000 Outdoor Systems Inc.,
8.88% due 06/15/2007 ....................... 1,055,000
-------------
BANKS - REGIONAL - 0.32%
1,000,000 Bank Atlantic Bancorp.,
5.63% due 12/01/2007 ....................... 820,000
-------------
BROADCASTING - 1.02%
1,000,000 Adelphia Communications Corp.,
9.88% due 03/01/2007 ....................... 1,101,250
1,000,000 Chancellor Media Corp.,
8.13% due 12/15/2007 ....................... 1,000,000
500,000 Clear Channel Communications,
2.63% due 04/01/2003 ....................... 510,000
-------------
2,611,250
-------------
ENTERTAINMENT - 0.40%
1,000,000 Loews Cineplex Entertainment Corp.,
8.88% due 08/01/2008 ....................... 1,035,000
-------------
LODGING - 0.37%
1,000,000 Hilton Hotels Corp.,
5.00% due 05/15/2006 ....................... 940,000
-------------
MACHINERY -
CONSTRUCTION & CONTRACTS - 0.36%
1,000,000 Columbus McKinnon Corp.,
8.50% due 04/01/2008 ....................... 920,000
-------------
MERCHANDISING - MASS - 0.42%
1,000,000 Fred Meyer, Inc.,
7.45% due 03/01/2008 ....................... 1,062,960
-------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- --------- -------------
<S> <C> <C>
OIL - SERVICES - 0.49%
$2,000,000 Key Energy Group, Inc.,
5.00% due 09/15/2004 ....................... $ 1,265,000
-------------
PUBLISHING/PRINTING - 0.37%
1,000,000 World Color Press, Inc.,
6.00% due 10/01/2007 ....................... 951,250
-------------
TEXTILE - PRODUCTS - 0.40%
1,000,000 WestPoint Stevens Inc.,
7.88% due 06/15/2008 ....................... 1,031,250
-------------
UTILITIES - ELECTRIC - 0.41%
1,000,000 AES Corp.,
8.88% due 08/15/2005 ....................... 1,050,000
-------------
TOTAL CONVERTIBLE BONDS
(Cost $13,633,847) .......................... 12,741,710
-------------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 6.21%
BEVERAGE - SOFT DRINKS - 2.01%
5,151,000 PepsiCo, Inc.,
4.80% due 12/01/1998 ....................... 5,151,000
-------------
FINANCE COMPANIES - 0.72%
1,838,000 General Electric Capital Services,
5.00% due 12/01/1998 ....................... 1,837,816
-------------
UTILITIES - ELECTRIC -3.48%
8,919,000 Conagra,
5.52% due 12/02/1998 ....................... 8,917,632
-------------
TOTAL CORPORATE SHORT
TERM COMMERCIAL PAPER
(Cost $15,906,448) .......................... 15,906,448
-------------
TOTAL INVESTMENTS
(Cost $184,908,365) - 100.01% .............. 256,368,215
Other assets less liabilities,
net - (0.01%) .............................. (14,386)
-------------
NET ASSETS (equivalent
$19.28 per share on
13,298,592 shares
outstanding) - 100% ........................ $ 256,353,829
=============
</TABLE>
<PAGE> 49
===============================================================================
GROWTH & INCOME FUND - STATEMENT OF NET ASSETS CONTINUED
NOVEMBER 30, 1998 (UNAUDITED) 47
===============================================================================
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
13,298,592 shares outstanding ............. $ 132,986
Additional paid in capital .................. 178,264,935
Accumulated net realized gain on securities . 6,313,595
Undistributed net investment income ......... 182,463
Unrealized appreciation of securities ....... 71,459,850
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING ................................ $256,353,829
</TABLE>
* Non-income producing
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 50
===============================================================================
GROWTH & INCOME FUND - FINANCIAL STATEMENTS (Unaudited)
48
===============================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends ...................................................................... $ 664,231
Interest ....................................................................... 850,991
-----------
Total investment income ...................................................... 1,515,222
-----------
EXPENSES:
Advisory fees .................................................................. 959,662
Custodian and accounting fees .................................................. 30,131
Reports to shareholders ........................................................ 15,095
Audit fees and tax services .................................................... 4,303
Directors' fees and expenses ................................................... 2,800
Miscellaneous .................................................................. 9,081
-----------
Total expenses ............................................................... 1,021,072
-----------
NET INVESTMENT INCOME .......................................................... 494,150
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized loss on securities ................................................ (13,647,563)
Net unrealized appreciation on securities during the period .................... 4,219,510
-----------
Net realized and unrealized loss on securities during the period ............ (9,428,053)
-----------
DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................... $(8,933,903)
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income .......................................................... $ 494,150 $ 1,096,169
Net realized gain (loss) on securities ......................................... (13,647,563) 20,112,463
Net unrealized appreciation of securities during the period .................... 4,219,510 21,794,919
------------- -------------
Increase (decrease) in net assets resulting from operations .................. (8,933,903) 43,003,551
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .......................................................... (485,096) (1,084,032)
Net realized gain on securities ................................................ -- (2,863,622)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders ............................................................. (485,096) (3,947,654)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ............................................... 6,196,491 31,809,939
Proceeds from capital stock issued for distributions reinvested ................ 485,096 3,947,654
------------- -------------
6,681,587 35,757,593
Cost of capital stock repurchased .............................................. (12,067,757) (13,199,616)
------------- -------------
Increase (decrease) in net assets resulting from capital
stock transactions .......................................................... (5,386,170) 22,557,977
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ........................................ (14,805,169) 61,613,874
NET ASSETS:
Beginning of period ............................................................ 271,158,998 209,545,124
------------- -------------
End of period (including undistributed net investment income
of $182,463 and $173,409) .................................................... $ 256,353,829 $ 271,158,998
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ................................................... 323,625 1,662,136
Shares issued for distributions reinvested ..................................... 26,247 209,426
Shares of capital stock repurchased ............................................ (669,839) (675,465)
------------- -------------
Increase (decrease) in shares outstanding .................................... (319,967) 1,196,397
Shares outstanding:
Beginning of period .......................................................... 13,618,559 12,422,162
------------- -------------
End of period ................................................................ 13,298,592 13,618,559
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 51
===============================================================================
SCIENCE & TECHNOLOGY FUND - STATEMENT OF NET ASSETS
November 30, 1998 (Unaudited) 49
===============================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCKS - 92.71%
AEROSPACE/DEFENSE - 1.64%
390,000* SCI Systems, Inc. ........................... $ 18,963,750
------------
AUTO - CARS - 0.48%
145,000 General Motors Corp. Class H ............... 5,510,000
------------
ELECTRONIC INSTRUMENTS - 0.47%
115,000* Cognex Corp. ................................ 1,904,688
43,000 Lattice Semiconductor Corp. ................. 1,585,625
30,000* Marshall Industries ......................... 780,000
55,000* Sawtek Inc. ................................. 1,196,250
------------
5,466,563
------------
INFORMATION PROCESSING - 4.33%
85,000* Micrel, Inc. ................................ 3,447,810
2,740,000* Parametric Technology Corp. ................. 46,580,000
------------
50,027,810
------------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 7.79%
575,000* BMC Software, Inc. .......................... 29,360,937
42,000* Great Plains Software, Inc. ................. 1,648,500
345,000* Microsoft Corp. ............................. 42,090,000
645,000* Platinum technology, inc .................... 11,408,438
152,000* Visio Corp. ................................. 5,377,000
------------
89,884,875
------------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 4.34%
35,000 Cyberian Outpost, Inc. ...................... 892,500
170,000* Dell Computer Corp. ......................... 10,338,125
345,000* Electronics for Imaging, Inc. ............... 9,250,313
400,000 Sun Microsystems, Inc. ...................... 29,625,000
------------
50,105,938
------------
INFORMATION PROCESSING -
COMPUTER SERVICES - 8.95%
290,000* America Online, Inc. ........................ 25,393,125
145,000 Automatic Data Processing, Inc. ............. 11,165,000
290,000 Checkfree Holdings Corp. .................... 4,712,500
860,000 First Data Corp. ............................ 22,951,250
760,000* Gartner Group, Inc. Class A ................. 16,435,000
215,000 National Data Corp. ......................... 8,035,625
350,700 Security Dynamics Technology ................ 5,348,175
145,000* Sterling Commerce Inc. ...................... 5,256,250
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -----------
<S> <C> <C>
INFORMATION PROCESSING -
COMPUTER SERVICES - Continued
100,000* VeriSign, Inc. .............................. $ 4,012,500
------------
103,309,425
------------
INFORMATION PROCESSING -
CONSUMER SOFTWARE - 4.98%
145,000* Intuit ...................................... 8,391,875
965,000* Networks Associates, Inc. ................... 49,094,375
------------
57,486,250
------------
INFORMATION PROCESSING -
DATA SERVICES - 27.38%
650,000* Adobe Systems Inc. .......................... 29,087,500
114,000* Affiliated Computer Services Class A ........ 4,367,625
571,000 Anixter Internationall, Inc. ................ 9,421,500
720,000* Ascend Communications Inc. .................. 40,455,000
345,000 Avant! Corp. ................................ 5,757,187
57,000* BISYS Group, Inc. ........................... 2,743,125
385,000* CBT Group PLC ADR ........................... 4,042,500
505,000* Cisco Systems, Inc. ......................... 38,064,375
650,000 Computer Associates International ........... 28,762,500
475,000* E M C Corp. ................................. 34,437,500
260,000* Electronic Arts ............................. 10,952,500
70,100* Envoy Corp. ................................. 2,795,237
390,000 Hewlett Packard Co. ......................... 24,472,500
55,000 Integrated Systems, Inc. .................... 553,438
820,000* Learning Co., Inc. .......................... 23,831,250
115,000 National Instruments Corp. .................. 3,335,000
360,000* Netscape Communications Corp. ............... 13,320,000
570,000* PsiNet, Inc. ................................ 10,687,500
140,000* Renaissance Worldwide Inc. .................. 997,500
245,000* Solectron Corp. ............................. 16,215,938
290,000* Tech Data Corp. ............................. 11,672,500
------------
315,972,175
------------
MERCHANDISE - SPECIALTY - 0.06%
40,000* SportsLine USA, Inc. ........................ 690,000
------------
MISCELLANEOUS - 0.49%
200,000* Brightpoint, Inc. ........................... 3,000,000
140,000* Preview Travel Inc. ......................... 2,660,000
------------
5,660,000
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
--------- -------------
<S> <C> <C>
MULTIMEDIA - 2.95%
720,000 Synopsys Inc. ............................... $ 34,110,000
--------------
SECURITIES RELATED - 1.08%
460,000 E*Trade Group, Inc. ......................... 12,448,750
--------------
SEMICONDUCTOR EQUIPMENT - 0.50%
171,000* Galileo Technology Ltd. ..................... 2,821,500
85,000* Microchip Technology, Inc. .................. 2,959,063
--------------
5,780,563
--------------
SEMICONDUCTORS - 15.01%
460,000* Altera Corp. ................................ 22,568,750
1,440,000* Analog Devices, Inc. ........................ 29,430,000
130,000* Applied Micro Circuits Corp. ................ 4,355,000
260,000* Burr Brown Corp. ............................ 6,142,500
215,000 Intel Corp. ................................. 23,139,375
950,000* Maxim Integrated Products ................... 37,287,500
230,000 Texas Instruments Inc. ...................... 17,566,250
645,000* Xilinx, Inc. ................................ 32,733,750
--------------
173,223,125
--------------
TELECOMMUNICATIONS - 11.38%
345,000 Airtouch Communications, Inc. ............... 19,729,688
490,000 ICG Communications, Inc. .................... 11,270,000
575,000* Intermedia Communications, Inc. ............. 9,918,750
580,000* MCI Worldcom Inc. ........................... 34,220,000
170,000 Nokia Corp - ADR Series A ................... 16,660,000
285,000* PanAmSat Corp. .............................. 9,583,125
210,000* Premisys Communications Inc. ................ 3,123,750
200,000 QUALCOMM, Inc. .............................. 10,975,000
315,000* Sanmina Corp. ............................... 15,690,938
15,000* Sprint Corp. ................................ 240,000
--------------
131,411,251
--------------
UTILITIES - COMMUNICATION - 0.88%
686,000* Vodafone Group Plc .......................... 10,141,824
--------------
TOTAL COMMON STOCKS
(Cost $862,796,437) ......................... 1,070,192,299
--------------
</TABLE>
<PAGE> 52
================================================================================
SCIENCE & TECHNOLOGY FUND - STATEMENT OF NET ASSETS CONTINUED
50 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- ---------------
<S> <C> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 7.32%
BEVERAGE - SOFT DRINKS - 0.66
PepsiCo, Inc.,
$ 7,555,000 4.80% due 12/01/1998 ....................... $ 7,555,000
---------------
CONGLOMERATES - 2.86%
PHH Corp.,
33,022,000 5.40% due 12/08/1998 ....................... 32,987,322
---------------
CONSUMER FINANCE - 1.30%
Sears Roebuck Acceptance Corp.,
15,000,000 4.87% due 12/02/1998 ....................... 14,997,969
---------------
FINANCE COMPANIES - 2.50%
7,296,000 Ford Credit Europe PLC,
4.95% due 12/04/1998 ....................... 7,292,988
14,161,000 General Electric Capital Services Inc.,
4.95% due 12/07/1998 ....................... 14,149,311
7,465,000 General Motors Acceptance Corp.,
4.86% due 12/03/1998 ....................... 7,462,982
---------------
28,905,281
---------------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $84,445,572) .......................... 84,445,572
---------------
TOTAL INVESTMENTS
(Cost $947,242,009) - 100.03% ............... 1,154,637,871
Other assets less liabilities,
net - (0.03%) .............................. (354,811)
---------------
NET ASSETS (equivalent
to $24.22 per share on
47,650,971 shares
outstanding) - 100% ........................ $ 1,154,283,060
===============
</TABLE>
* Non-income producing
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
47,650,971 shares outstanding ............. $ 476,510
Additional paid in capital .................. 845,123,742
Accumulated net realized gain on securities . 104,163,798
Accumulated net investment loss ............. (2,876,852)
Unrealized appreciation of investments ...... 207,395,862
---------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING ............................... $ 1,154,283,060
===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 53
===============================================================================
SCIENCE & TECHNOLOGY FUND - FINANCIAL STATEMENTS (Unaudited)
51
===============================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
INVESTMENT INCOME:
<S> <C> <C>
Dividends ...................................................................... $ 346,950
Interest ....................................................................... 1,551,824
------------
Total investment income ...................................................... 1,898,774
------------
EXPENSES:
Advisory fees .................................................................. 4,532,323
Custodian and accounting services .............................................. 115,404
Reports to shareholders ........................................................ 76,185
Audit fees and tax services .................................................... 15,920
Directors' fees and expenses ................................................... 13,779
Miscellaneous .................................................................. 22,015
------------
Total expenses ............................................................... 4,775,626
------------
NET INVESTMENT LOSS ............................................................ (2,876,852)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments .................................................... $ 9,612,939
Foreign currency transactions .................................. (20,302) 9,592,637
-------------
Net unrealized appreciation (depreciation) during the year:
Investments .................................................... 97,127,945
Foreign currency transactions .................................. (329,583) 96,798,362
------------- ------------
Net realized and unrealized gain on securities during the period ............. 106,390,999
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................... $103,514,147
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss .................................................. $ (2,876,852) $ (4,399,764)
Net realized gain on securities and foreign
currency transactions ............................................... 9,592,637 111,229,008
Net unrealized appreciation (depreciation) of securities
during the period ................................................... 96,798,362 (16,698,726)
----------------- -----------------
Increase in net assets resulting from operations .................. 103,514,147 90,130,518
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................................ -- --
Net realized gain on securities ...................................... -- --
Decrease in net assets resulting from distributions
----------------- -----------------
to shareholders .................................................. -- --
----------------- -----------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ..................................... 66,426,237 217,275,229
Proceeds from capital stock issued for
distributions reinvested ............................................ -- --
----------------- -----------------
66,426,237 217,275,229
Cost of capital stock repurchased .................................... (38,798,263) (89,246,756)
----------------- -----------------
Increase in net assets resulting from capital
stock transactions ............................................... 27,627,974 128,028,473
----------------- -----------------
TOTAL INCREASE IN NET ASSETS ......................................... 131,142,121 218,158,991
NET ASSETS:
Beginning of period .................................................. 1,023,140,939 804,981,947
----------------- -----------------
End of period (including accumulated net investment loss
of $(2,876,852) and $0) ............................................. $ 1,154,283,060 $ 1,023,140,938
================= =================
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ......................................... 3,120,246 10,004,608
Shares issued for distributions reinvested ........................... -- --
Shares of capital stock repurchased .................................. (1,824,435) (4,133,577)
----------------- -----------------
Increase in shares outstanding ..................................... 1,295,811 5,871,031
Shares outstanding:
Beginning of period ................................................ 46,355,160 40,484,129
----------------- -----------------
End of period ...................................................... 47,650,971 46,355,160
================= =================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 54
================================================================================
SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS
52 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ---------- -----------
<S> <C> <C>
COMMON STOCKS - 98.49%
ADVERTISING - 0.22%
6,982 Interpublic Group Cos., Inc. .......................... $ 480,013
7,561 Omnicom Group, Inc. ................................... 404,041
------------
884,054
------------
AEROSPACE/DEFENSE - 0.12%
967 Crane Co. ............................................. 31,246
11,558 Goodrich (B.F.) Co. ................................... 438,482
------------
469,728
------------
AIRLINES - 0.31%
9,636* AMR Corp. ............................................. 635,374
5,366 Delta Air Lines, Inc. ................................. 288,087
11,932 Southwest Airlines Co. ................................ 256,538
1,737* US Airways Group, Inc. ................................ 90,324
------------
1,270,323
------------
APPLIANCES/FURNISHINGS - 0.10%
3,075 Maytag Corp. .......................................... 166,434
4,021 Whirlpool Corp. ....................................... 225,176
------------
391,610
------------
AUTO - CARS - 0.34%
14,357 Daimlerchrysler AG .................................... 1,316,357
2,839 Meritor Automotive, Inc. .............................. 50,215
------------
1,366,572
------------
AUTO - ORIGINAL EQUIPMENT - 0.03%
155 Arvin Industries, Inc. ................................ 6,510
944 Danaher Corp. ......................................... 43,070
903 Federal-Mogul Corp. ................................... 51,245
1,006 Modine Manufacturing Co. .............................. 36,719
------------
137,544
------------
AUTO - REPLACEMENT PARTS - 0.19%
22,878 Genuine Parts Co. ..................................... 753,544
------------
BANKS - NEW YORK CITY - 1.87%
40,342 Bank of New York Co., Inc. ............................ 1,381,714
105,346 Citigroup Inc. ........................................ 5,287,052
8,534 J. P. Morgan & Co. Inc. ............................... 912,071
-----------
7,580,837
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ---------- -----------
<S> <C> <C>
BANKS - OTHER - 4.08%
86,158 BankAmerica Corp. ..................................... $ 5,616,425
12,391 BankBoston Corp. ...................................... 515,775
256 Bankers Trust Corp. ................................... 22,272
54,272 First Union Corp. ..................................... 3,297,024
28,311 Fleet Financial Group, Inc. ........................... 1,180,215
11,807 Mellon Bank Corp. ..................................... 743,103
21,346 National City Corp. ................................... 1,435,519
5,429 Providian Financial Corp. ............................. 498,450
89,438 Wells Fargo Co. ....................................... 3,219,767
------------
16,528,550
------------
BANKS - REGIONAL - 3.18%
65,801 Bank One Corp. ........................................ 3,376,414
44,828 Chase Manhattan Corp. ................................. 2,843,776
5,595 Comerica Inc. ......................................... 360,878
13,723 Fifth Third Bancorp ................................... 910,864
23,409 KeyCorp ............................................... 718,364
2,245 Northern Trust Corp. .................................. 181,284
13,874 PNC Bank Corp. ........................................ 715,378
2,486 State Street Corp. .................................... 170,602
3,649 Summit Bancorporation ................................. 152,574
13,197 SunTrust Banks, Inc. .................................. 921,316
38,504 U.S. Bancorp .......................................... 1,417,429
12,963 Wachovia Corp. ........................................ 1,131,832
------------
12,900,711
------------
BEVERAGE - BREWERS/DISTRIBUTORS - 1.02%
918 Adolph Coors Class B .................................. 45,671
44,346 Anheuser-Busch Companies, Inc. ........................ 2,688,476
6,702 Brown-Forman Corp Class B ............................. 487,571
26,459 Seagram Co. Ltd. ...................................... 907,874
------------
4,129,592
------------
BEVERAGE - SOFT DRINKS - 3.19%
131,103 Coca-Cola Co. ......................................... 9,185,404
18,520 Coca Cola Enterprises, Inc. ........................... 700,288
79,083 PepsiCo, Inc. ......................................... 3,059,524
------------
12,945,216
------------
BROADCASTING - 1.59%
9,819* Clear Channel Communications .......................... 459,038
18,756 Comcast Corp. Class A Special ......................... 912,011
25,059* Media One Group Inc. .................................. 1,014,890
25,926 Tele-Comm Liberty Media Group
Class A .............................................. 1,095,374
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ---------- -----------
<S> <C> <C>
BROADCASTING - Continued
29,737 U S WEST, Inc. ........................................ $1,851,128
17,037* Viacom, Inc Class B ................................... 1,134,025
------------
6,466,466
------------
BUILDING MATERIALS - 0.37%
3,313 Armstrong World Inds. Inc. ............................ 220,729
15,466 Lowe's Companies, Inc. ................................ 653,439
9,620 Sherwin-Williams Co. .................................. 272,968
2,834 Vulcan Materials Co. .................................. 355,313
------------
1,502,449
------------
CHEMICAL - MAJOR - 0.62%
6,899 Albemarle Corp. ....................................... 128,494
7,756 Morton International, Inc. ............................ 228,317
22,959 PPG Industries, Inc. .................................. 1,404,804
22,104 Rohm and Haas Co. ..................................... 772,259
------------
2,533,874
------------
CHEMICAL - MISCELLANEOUS - 0.38%
666 Dexter Corp. .......................................... 21,354
9,884 Ecolab Inc. ........................................... 305,786
15,662 Ethyl Corp. ........................................... 91,035
943 Ferro Corp. ........................................... 26,345
3,023 Great Lakes Chemical Corp. ............................ 120,731
6,386 Lawter International, Inc. ............................ 52,685
5,822 Lubrizol Corp. ........................................ 157,922
5,496 Nalco Chemical Co. .................................... 183,773
9,440 Praxair, Inc. ......................................... 360,490
6,820 Sigma Aldrich Corp. ................................... 219,093
------------
1,539,214
------------
CONGLOMERATES - 0.76%
2,893 Alexander & Baldwin, Inc. ............................. 66,539
4,733 Ogden Corp. ........................................... 125,720
19,389 Tenneco Inc. .......................................... 690,733
33,633 Tyco International Ltd. ............................... 2,213,473
------------
3,096,465
------------
CONSUMER FINANCE - 0.32%
3,276 Capital One Financial Corp. ........................... 360,360
41,367 MBNA Corp. ............................................ 938,514
------------
1,298,874
------------
CONTAINERS - METAL/GLASS - 0.22%
15,643 Corning Inc. .......................................... 627,675
</TABLE>
<PAGE> 55
================================================================================
SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1998 (Unaudited) 53
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
CONTAINERS - METAL/GLASS - Continued
8,280* Owens-Illinois, Inc. .................................. $ 265,995
-----------
893,670
-----------
CONTAINERS - PAPER - 0.13%
4,457 Bemis Co., Inc. ....................................... 168,530
867 Chesapeake Corp. ...................................... 30,074
1,901* Sealed Air Corp. ...................................... 83,874
7,590 Sonoco Products Co. ................................... 227,227
-----------
509,705
-----------
COSMETICS/TOILETRIES - 0.92%
10,847 Avon Products, Inc. ................................... 440,659
64,597 Gillette Co. .......................................... 2,967,425
7,478 International Flavors &
Fragrances, Inc. ..................................... 313,142
-----------
3,721,226
-----------
DRUGS - 7.95%
4,843 Allergan, Inc. ........................................ 294,818
3,659* ALZA Corp. ............................................ 191,183
75,268 American Home Products Corp. .......................... 4,008,021
15,548* Amgen Inc. ............................................ 1,169,987
610 Bausch & Lomb Inc. .................................... 33,855
62,325 Bristol Myers Squibb Co. .............................. 7,638,708
1,041 McKesson Corp. ........................................ 74,106
67,196 Merck & Co., Inc. ..................................... 10,406,981
45,471 Schering-Plough Corp. ................................. 4,836,978
47,217 Warner-Lambert Co. .................................... 3,564,885
-----------
32,219,522
-----------
ELECTRICAL EQUIPMENT - 0.96%
22,443 AMP Inc. .............................................. 1,085,680
39,566 Emerson Electric Co. .................................. 2,571,790
1,647 Thomas & Betts Corp. .................................. 71,337
4,163 W. W. Grainger Inc. ................................... 175,888
-----------
3,904,695
-----------
ELECTRONIC INSTRUMENTS - 0.04%
1,288 Integrated Device Technology .......................... 7,568
1,458 Perkin-Elmer Corp. .................................... 135,959
-----------
143,527
-----------
ENTERTAINMENT - 1.82%
5,228 Hasbro, Inc. .......................................... 183,307
13,552 Mattel, Inc. .......................................... 468,391
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
ENTERTAINMENT - Continued
33,342 Time Warner Inc........................................ $ 3,525,917
99,916 Walt Disney Co......................................... 3,216,047
-----------
7,393,662
-----------
FINANCE COMPANIES - 0.99%
22,600 Associates First Capital Corp. ........................ 1,759,975
38,686 Household International, Inc. ......................... 1,513,590
9,181 SunAmerica, Inc. ...................................... 727,595
-----------
4,001,160
-----------
FINANCIAL SERVICES - 0.95%
33,175 American Express Co. .................................. 3,319,573
4,508 Countrywide Credit Ind Inc. ........................... 223,147
6,816 H & R Block Inc. ...................................... 306,294
-----------
3,849,014
-----------
FOODS - 3.04%
20,839 BestFoods ............................................. 1,211,267
28,610 Campbell Soup Co. ..................................... 1,634,346
28,676 ConAgra, Inc. ......................................... 901,502
13,796 General Mills, Inc. ................................... 1,041,598
27,854 H J Heinz Co. ......................................... 1,624,236
8,089 Hershey Foods Corp. ................................... 543,985
29,038 Kellogg Co. ........................................... 1,063,517
927 Lance, Inc. ........................................... 18,250
14,219 Pioneer Hi-Bred International, Inc. ................... 425,681
7,596 Quaker Oats Co. ....................................... 466,205
21,527 Ralston Purina Co. .................................... 749,409
31,440 Sara Lee Corp. ........................................ 1,835,310
8,996 Wm. Wrigley Jr. Co. ................................... 792,774
-----------
12,308,080
-----------
FOOTWEAR - 0.15%
15,203 NIKE, Inc. Class B .................................... 608,120
-----------
FREIGHT - 0.10%
5,943* FDX Corp. ............................................. 385,552
-----------
GOLD MINING - 0.28%
29,612 Barrick Gold Corp. .................................... 592,240
24,548 Battle Mountain Gold Co. .............................. 115,069
10,410 Homestake Mining Co. .................................. 111,908
22,615 Placer Dome Inc. ...................................... 329,332
-----------
1,148,549
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
GOVERNMENT SPONSORED - 2.07%
44,547 Federal Home Loan Mortgage Corp. ...................... $ 2,695,094
71,684 Federal National Mortgage
Association .......................................... 5,215,012
11,078 SLM Holding Corp. ..................................... 487,432
-----------
8,397,538
-----------
FUNERAL SERVICES - 0.17%
18,716 Service Corp. International ........................... 699,511
-----------
HARDWARE & TOOLS - 0.07%
4,919 Black & Decker Corp. .................................. 266,548
396 Stanley Works ......................................... 12,104
-----------
278,652
-----------
HEALTHCARE - 0.50%
11,570 Cardinal Health, Inc. ................................. 793,992
16,462* HealthSouth Corp. ..................................... 221,208
4,828* Humana Inc. ........................................... 95,655
6,952 IMS Helath Inc. ....................................... 461,439
9,668 United HealthCare Corp. ............................... 436,269
-----------
2,008,563
-----------
HEAVY DUTY TRUCKS/PARTS - 0.25%
18,485 Dana Corp. ............................................ 720,915
6,394 PACCAR Inc. ........................................... 290,927
-----------
1,011,842
-----------
HOSPITAL MANAGEMENT - 0.27%
31,951 Columbia/HCA Healthcare Corp. ......................... 786,794
9,822* Tenet Healthcare Corp. ................................ 290,364
-----------
1,077,158
-----------
HOSPITAL SUPPLIES - 3.95%
102,012 Abbott Laboratories ................................... 4,896,576
20,733 Baxter International Inc. ............................. 1,317,842
14,699 Becton, Dickinson and Co. ............................. 624,708
2,614 Biomet, Inc. .......................................... 99,986
7,927* Boston Scientific Corp. ............................... 392,388
2,290 Hillenbrand Industries, Inc. .......................... 130,101
80,389 Johnson & Johnson ..................................... 6,531,606
29,249 Medtronic, Inc. ....................................... 1,979,793
888 St. Jude Medical, Inc. ................................ 25,808
-----------
15,998,808
-----------
</TABLE>
<PAGE> 56
================================================================================
SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS CONTINUED
54 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
HOUSEHOLD PRODUCTS - 3.09%
5,356 Clorox Co.............................................. $ 594,851
18,357 Colgate-Palmolive Co. ................................. 1,571,819
4,593 Newell Co. ............................................ 203,240
78,261 Procter & Gamble Co. .................................. 6,857,620
2,717 Rubbermaid, Inc. ...................................... 89,832
41,215 Unilever N V - ADR .................................... 3,186,435
-----------
12,503,797
-----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 3.78%
6,811* BMC Software, Inc. .................................... 347,787
110,589* Microsoft Corp. ....................................... 13,491,858
41,590* Oracle Corp. .......................................... 1,424,458
2,227* Peoplesoft Inc. ....................................... 45,793
-----------
15,309,896
-----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 1.81%
4,855* Apple Computer, Inc. .................................. 155,057
75,429 Compaq Computer Corp. ................................. 2,451,443
55,978* Dell Computer Corp. ................................... 3,404,162
402 OEA, Inc. ............................................. 5,251
17,799 Sun Microsystems, Inc. ................................ 1,318,238
-----------
7,334,151
-----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 0.88%
582* America Online, Inc. .................................. 50,961
21,283 Automatic Data Processing, Inc. ....................... 1,638,791
28,235 Electronic Data Systems Corp. ......................... 1,101,165
18,728 First Data Corp. ...................................... 499,804
5,849 Paychex, Inc. ......................................... 290,988
-----------
3,581,709
-----------
INFORMATION PROCESSING -
COMPUTER SOFTWARE - 0.14%
18,150 HBO & Co. ............................................. 452,616
6,713* Parametric Technology Corp. ........................... 114,121
-----------
566,737
-----------
INFORMATION PROCESSING -
DATA SERVICES - 4.59%
214* Adobe Systems Inc. .................................... 9,577
29,335* Cendant Corp. ......................................... 557,365
3,872 Comdisco, Inc. ........................................ 70,664
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
INFORMATION PROCESSING -
DATA SERVICES - Continued
24,771 Computer Associates International ..................... $ 1,096,117
5,653* Computer Sciences Corp. ............................... 322,928
22,783* E M C Corp. ........................................... 1,651,768
5,970* Gateway 2000, Inc. .................................... 335,066
52,143 Hewlett Packard Co. ................................... 3,271,973
45,095 International Business Machine ........................ 7,440,675
2,183* Novell, Inc ........................................... 36,156
20,235 Pitney Bowes Inc. ..................................... 1,133,160
9,167* Seagate Technology .................................... 270,427
10,621* Unisys Corp. .......................................... 302,699
19,579 Xerox Corp. ........................................... 2,104,743
-----------
18,603,318
-----------
INFORMATION PROCESSING -
NETWORKING - 1.59%
7,938* Ascend Communications Inc. ............................ 446,016
69,912* Cisco Systems, Inc. ................................... 5,269,617
5,053* General Insturment Corp. .............................. 142,116
15,240* 3Com Corp. ............................................ 589,598
-----------
6,447,347
-----------
INSURANCE - CASUALTY - 0.41%
7,669 Chubb Corp. ........................................... 537,309
3,031 Progressive Corp. ..................................... 449,725
3,366 SAFECO Corp. .......................................... 144,528
14,868 St. Paul Companies, Inc. .............................. 524,097
-----------
1,655,659
-----------
INSURANCE - LIFE - 0.65%
8,261 Aetna Inc. ............................................ 638,679
12,315 Conseco Inc. .......................................... 407,934
3,331 Jefferson-Pilot Corp. ................................. 227,341
8,032 Lincoln National Corp. ................................ 672,178
2,856 Torchmark Corp. ....................................... 108,528
5,626 Transamerica Corp. .................................... 597,763
-----------
2,652,423
-----------
INSURANCE - MISCELLANEOUS -0.32%
4,696 General Re Corp. ...................................... 1,096,516
3,865 UNUM Corp. ............................................ 208,227
-----------
1,304,743
-----------
INSURANCE - MULTILINE - 2.85%
521 AFLAC Inc. ............................................ 19,212
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
INSURANCE - MULTILINE - Continued
47,656 Allstate Corp. ........................................ $ 1,941,982
57,545 American International Group, Inc. .................... 5,409,230
18,684 Aon Corp. ............................................. 1,076,666
14,197 CIGNA Corp. ........................................... 1,104,704
4,572 Cincinnati Financial Corp. ............................ 178,594
10,892 Hartford Financial Services Group ..................... 601,102
21,178 Marsh & McLennan Companies Inc. ....................... 1,232,295
-----------
11,563,785
-----------
LEISURE TIME - 0.01%
2,483 Brunswick Corp. ....................................... 54,626
-----------
LODGING - 0.05%
3,716 Hilton Hotels Corp. ................................... 80,823
4,542 Marriott International Inc. ........................... 133,421
-----------
214,244
-----------
MACHINERY - AGRICULTURE - 0.14%
1,089 Case Corp. ............................................ 26,408
15,791 Deere & Co. ........................................... 551,698
-----------
578,106
-----------
MACHINERY -
CONSTRUCTION & CONTRACTS - 0.32%
25,989 Caterpillar Inc. ...................................... 1,284,831
178 Foster Wheeler Corp. .................................. 3,048
-----------
1,287,879
-----------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.95%
1,530 Aeroquip-Vickers, Inc. ................................ 55,654
1,790 Albany International Corp. Class A .................... 34,010
12,247 Cooper Industries, Inc. ............................... 601,634
14,995 Dover Corp. ........................................... 534,197
21,581 Illinois Tool Works Inc. .............................. 1,371,742
9,643 Ingersoll-Rand Co. .................................... 451,413
7,015 Johnson Controls, Inc. ................................ 405,993
6,135 Newport News Shipbuilding ............................. 172,547
4,445 Pall Corp. ............................................ 103,346
1,704 Tidewater, Inc. ....................................... 39,299
4,319 Timken Co. ............................................ 83,141
-----------
3,852,976
-----------
MEDICAL TECHNOLOGY - 0.16%
7,674 Guidant Corp. ......................................... 658,525
-----------
</TABLE>
<PAGE> 57
================================================================================
SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1998 (Unaudited) 55
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
MERCHANDISE - DRUG - 0.63%
16,609 CVS Corp............................................... $ 820,069
9,062 Rite Aid Corp. ........................................ 420,250
24,751 Walgreen Co. .......................................... 1,328,819
----------
2,569,138
----------
MERCHANDISE - SPECIALTY - 1.66%
2,323 American Greetings Corp. Class A ...................... 98,292
7,442* CostCo Companies, Inc. ................................ 466,986
784 Dollar General Corp. .................................. 18,669
19,841 Fortune Brands, Inc. .................................. 675,834
16,375 Gap, Inc. ............................................. 1,204,586
69,921 Home Depot, Inc. ...................................... 3,478,570
2,378 Ikon Office Solutions Inc. ............................ 23,186
1,256* Kohl's Corp. .......................................... 61,780
4,585 Limited, Inc. ......................................... 132,678
1,741 Nordstrom, Inc. ....................................... 64,852
8,063* Staples, Inc. ......................................... 281,701
852 Tandy Corp. ........................................... 38,393
5,368 TJX Companies, Inc. ................................... 137,555
1,477* Toys "R" Us, Inc. ..................................... 29,171
----------
6,712,253
----------
MERCHANDISING - DEPARTMENT - 0.36%
18,846 Dayton Hudson Corp. ................................... 848,070
1,473* Federated Dept Stores, Inc ............................ 61,406
9,407 May Department Stores Co. ............................. 567,360
----------
1,476,836
----------
MERCHANDISING - FOOD - 0.95%
13,905 Albertsons, Inc. ...................................... 793,454
11,529 American Stores Co. ................................... 386,942
12,063 Kroger Co. ............................................ 640,093
24,303* Safeway, Inc. ......................................... 1,283,502
15,689 SYSCO Corp. ........................................... 422,622
7,888 Winn-Dixie Stores, Inc. ............................... 317,985
----------
3,844,598
----------
MERCHANDISING - MASS - 2.50%
3,008 Fred Meyer, Inc. ...................................... 153,032
18,996* KMart Corp. ........................................... 289,689
14,083 J.C. Penney Co., Inc. ................................. 774,565
20,895 Sears Roebuck and Co. ................................. 991,207
105,190 Wal-Mart Stores, Inc. ................................. 7,922,122
----------
10,130,615
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
METALS - ALUMINUM - 0.19%
28,390 Alcan Aluminium Ltd.................................... 755,884
---------
METALS - COPPER - 0.02%
4,739 Newmont Mining Corp. .................................. 94,188
---------
METALS - MISCELLANEOUS - 0.17%
7,437 Engelhard Corp. ....................................... 143,627
622* Freeport-McMoRan Copper & Gold
Class B .............................................. 8,125
29,208 Inco Limited .......................................... 337,718
4,188 Precision Castparts Corp. ............................. 185,057
---------
674,527
---------
METALS - STEEL- 0.03%
1,127 Cleveland-Cliffs Inc. ................................. 42,896
4,705 Oregon Steel Mills, Inc. .............................. 59,695
1,948 Worthington Industries, Inc. .......................... 23,741
---------
126,332
---------
MOBILE HOMES - 0.02%
1,840 Fleetwood Enterprises, Inc. ........................... 61,985
---------
MISCELLANEOUS - 0.11%
1,815 BB & T Corp. .......................................... 67,042
8,755 Equifax Inc. .......................................... 363,333
---------
430,375
---------
MULTIMEDIA - 0.01%
629 Meredith Corp. ........................................ 24,413
---------
NATURAL GAS-DIVERSIFIED - 0.26%
3,832 Eastern Enterprises ................................... 155,436
6,901 El Paso Energy Corp. .................................. 235,497
5,980* Seagull Energy Corp. .................................. 48,961
20,348 Sonat Inc. ............................................ 604,081
---------
1,043,975
---------
OIL - INTEGRATED DOMESTIC - 1.62%
17,015 Amerada Hess Corp. .................................... 944,332
9,366 Ashland Oil, Inc. ..................................... 455,421
33,552* Burlington Resources, Inc. ............................ 1,195,290
17,387 Oryx Energy Co. ....................................... 240,158
12,661 Pennzoil Co. .......................................... 470,040
50,279 Phillips Petroleum Co. ................................ 2,111,718
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
OIL - INTEGRATED DOMESTIC - Continued
40,022 USX-Marathon Group .................................... $1,135,624
----------
6,552,583
----------
OIL - INTEGRATED INTERNATIONAL - 1.35%
22,340 Murphy Oil Corp. ...................................... 890,807
79,434 Texaco Inc. ........................................... 4,572,420
----------
5,463,227
----------
OIL - SERVICES - 0.89%
31,126 Baker Hughes Inc. ..................................... 569,994
39,382 Halliburton Co. ....................................... 1,156,846
494 McDermott International, Inc. ......................... 13,245
40,349 Schlumberger Ltd. ..................................... 1,803,095
484* Smith International, Inc. ............................. 11,677
2,002 Transocean Offshore, Inc. ............................. 49,424
----------
3,604,281
----------
OIL/GAS PRODUCERS - 0.64%
16,319 Anadarko Petroleum Corp. .............................. 459,991
18,577 Apache Corp. .......................................... 427,271
6,387 Helmerich & Payne, Inc. ............................... 110,176
9,231 Noble Affiliates, Inc. ................................ 233,659
9,623* Ocean Energy, Inc. .................................... 78,186
14,437 Pioneer Natural Resources Corp. ....................... 191,290
3,155* Ranger Oil Ltd. ....................................... 14,986
8,873 Sunoco Inc. ........................................... 300,572
8,908 Ultramar Diamond Shamrock ............................. 229,381
39,531 Union Pacific Resources Group Inc. .................... 442,253
4,686 Valero Energy Corp. ................................... 98,406
----------
2,586,171
----------
PAPER/FOREST PRODUCTS - 0.87%
9,409 Avery Dennison Corp. .................................. 451,043
44,025 Kimberly-Clark Corp. .................................. 2,316,815
9,697 Longview Fibre Co. .................................... 109,697
6,736 Louisiana Pacific Corp. ............................... 114,512
5,086 Rayonier Inc. ......................................... 216,155
8,529 Willamette Industries, Inc. ........................... 297,981
----------
3,506,203
----------
POLLUTION CONTROL - 0.31%
7,181 Browning-Ferris Industries Inc. ....................... 211,839
24,596 Waste Management, Inc. ................................ 1,054,553
----------
1,266,392
----------
</TABLE>
<PAGE> 58
================================================================================
SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS CONTINUED
56 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
PUBLISHING - NEWS - 0.66%
3,550 Dow Jones & Co., Inc. ................................. $ 169,734
21,631 Gannett Co., Inc. ..................................... 1,396,551
2,042 Knight-Ridder, Inc. ................................... 105,035
12,670 New York Times Co. Class A ............................ 393,562
3,357 Times Mirror Co. ...................................... 196,804
4,887 Tribune Co. ........................................... 313,379
221 Washington Post Co. Class B ........................... 117,613
----------
2,692,678
----------
PUBLISHING/PRINTING - 0.41%
12,865 Deluxe Corp. .......................................... 447,058
11,572 Dun & Bradstreet Corp. ................................ 349,329
9,560 McGraw-Hill, Inc. ..................................... 855,620
----------
1,652,007
----------
RAILROAD - 1.00%
30,788 Burlington Northern Santa Fe .......................... 1,046,792
19,301 CSX Corp. ............................................. 804,610
36,210 Norfolk Southern Corp. ................................ 1,099,878
22,861 Union Pacific Corp. ................................... 1,111,616
----------
4,062,896
----------
RESTAURANTS - 0.76%
41,208 McDonald's Corp. ...................................... 2,887,136
3,962* Tricon Global Restaurants, Inc. ....................... 180,518
----------
3,067,654
----------
SAVINGS & LOAN - 0.27%
1,631 Golden West Financial Corp. ........................... 154,435
24,630 Washington Mutual, Inc. ............................... 954,412
----------
1,108,847
----------
SECURITIES RELATED - 1.15%
11,720 Charles Schwab Corp. .................................. 660,715
13,873 Franklin Resources, Inc. .............................. 593,070
1,764 Lehman Brothers Holdings, Inc. ........................ 88,090
16,058 Merrill Lynch & Co., Inc. ............................. 1,204,350
30,014 Morgan Stanley, Dean Witter,
Discover and Co. ..................................... 2,093,480
----------
4,639,705
----------
SEMICONDUCTOR EQUIPMENT - 0.14%
13,858* Applied Materials, Inc. ............................... 536,997
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
SEMICONDUCTOR EQUIPMENT - Continued
314* KLA-Tencor Corp. ...................................... $ 10,696
-----------
547,693
-----------
SEMICONDUCTORS - 2.56%
2,230* Advanced Micro Devices, Inc. .......................... 61,743
78,086 Intel Corp. ........................................... 8,404,005
2,966* LSI Logic Corp. ....................................... 45,973
8,484* Micron Technology, Inc. ............................... 350,495
3,301* National Semiconductor Corp. .......................... 47,451
19,103 Texas Instruments Inc. ................................ 1,458,992
-----------
10,368,659
-----------
TELECOMMUNICATIONS - 3.35%
20,520* Airtouch Communications, Inc. ......................... 1,173,487
12,745 ALLTEL Corp. .......................................... 675,485
61,855 Lucent Technologies, Inc. ............................. 5,323,396
75,986* MCI Worldcom Inc. ..................................... 4,483,174
1,203* Nextel Communications, Inc. Class A ................... 25,865
30,524 Northern Telecom Ltd. ................................. 1,425,089
832 Scientific-Atlanta, Inc. .............................. 16,120
8,219* Tellabs, Inc. ......................................... 444,340
-----------
13,566,956
-----------
TEXTILE - PRODUCTS - 0.07%
5,513 V F Corp. ............................................. 270,482
-----------
UTILITIES - COMMUNICATION - 6.08%
58,182 Ameritech Corp. ....................................... 3,149,101
89,928 A T & T Corp. ......................................... 5,603,638
84,720 Bell Atlantic Corp. ................................... 4,712,550
55,868 BellSouth Corp. ....................................... 4,874,483
95,035 SBC Communications, Inc. .............................. 4,555,740
21,687 Sprint Corp. FON Group ................................ 1,577,729
10,844 Sprint Corp. PCS Group ................................ 173,496
-----------
24,646,737
-----------
UTILITIES - ELECTRIC - 2.49%
6,280* AES Corp. ............................................. 287,310
22,975 Allegheny Energy, Inc. ................................ 775,406
29,604 Cinergy Corp. ......................................... 1,023,188
3,383 Cleco Corp. ........................................... 115,656
6,006 Hawaiian Electric Industries .......................... 233,859
7,014 Idacorp Inc. .......................................... 244,613
5,481 Indiana Energy, Inc. .................................. 124,015
1,790 IPALCO Enterprises, Inc. .............................. 89,724
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
UTILITIES - ELECTRIC - Continued
4,302 Kansas City Power & Light Co. ......................... $ 127,716
24,336 LG&E Energy Corp. ..................................... 681,408
6,329 Minnesota Power Inc. .................................. 264,631
10,315 Montana Power Co. ..................................... 522,841
9,560 Nevada Power Co. ...................................... 226,453
20,879 New Century Energies, Inc. ............................ 1,003,497
22,287 NIPSCO Industries, Inc. ............................... 653,288
15,157 OGE Energy Corp. ...................................... 423,449
55,779 PacifiCorp ............................................ 1,045,856
22,242 Potomac Electric Power Co. ............................ 579,682
15,868 Puget Sound Energy Inc. ............................... 430,420
24,709 TECO Energy, Inc. ..................................... 664,054
10,086 UtiliCorp United Inc. ................................. 354,901
8,187 Washington Gas Light Co. .............................. 208,768
------------
10,080,735
------------
UTILITIES - GAS, DISTRIBUTION - 0.44%
10,694 AGL Resources, Inc. ................................... 230,589
24,486 Keyspan Energy Corp. .................................. 726,928
1,622 MCN Energy Group Inc. ................................. 30,716
11,619 National Fuel Gas Co. ................................. 533,747
6,130 NICOR Inc. ............................................ 257,843
296 Tosco Corp. ........................................... 7,733
------------
1,787,556
------------
UTILITIES - GAS, PIPELINE - 1.21%
10,633 Columbia Energy Group ................................. 603,423
20,241 Consolidated Natural Gas Co. .......................... 1,099,339
34,124 Enron Corp. ........................................... 1,793,643
8,186 ONEOK Inc. ............................................ 284,975
6,624 Peoples Energy Corp. .................................. 249,642
30,930 Williams Companies, Inc. .............................. 891,171
------------
4,922,193
------------
WATER SERVICES - 0.05%
6,927 American Water Works Co., Inc. ........................ 214,304
------------
TOTAL COMMON STOCKS
(Cost $336,510,956) ................................... 399,077,176
------------
</TABLE>
<PAGE> 59
================================================================================
SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1998 (Unaudited) 57
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- --------- -----------
<S> <C> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 1.20%
SECURITIES RELATED - 0.77%
$3,128,000 Merrill Lynch & Co., Inc.,
5.00% due 12/01/1998 .............................. $ 3,128,000
UTILITIES - ELECTRIC - 0.43%
1,725,000 Conagra,
5.52% due 12/02/1998 .............................. 1,724,735
------------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $4,852,735) .................................. 4,852,735
------------
UNITED STATES GOVERNMENT
SHORT TERM - 0.21%
U.S. TREASURY BILLS - 0.21%
United States Treasury Bills:
50,000 4.17% due 01/14/1999 .............................. 49,745
800,000 3.75% due 12/10/1998 .............................. 799,246
------------
848,991
------------
TOTAL UNITED STATES GOVERNMENT
SHORT TERM
(Cost $848,991) .................................... 848,991
------------
TOTAL INVESTMENTS
(Cost $342,212,682) - 99.90% ....................... 404,778,902
Other assets less liabilities,
net - 0.10% ....................................... 412,235
------------
NET ASSETS (equivalent
to $23.60 per share on
17,167,122 shares
outstanding) - 100%................................ $405,191,137
============
* Non-income producing
</TABLE>
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
17,167,122 shares outstanding ...................... $ 171,671
Additional paid in capital ........................... 297,453,642
Accumulated net realized gain on securities .......... 44,746,911
Undistributed net investment income .................. 252,693
Unrealized appreciation of investments ............... 62,566,220
------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING ........................................ $405,191,137
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 60
================================================================================
58 SOCIAL AWARENESS FUND - STATEMENT OF NET ASSETS CONTINUED
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends ................................................................ $ 2,595,157
Interest ................................................................. 254,776
-----------
Total investment income ................................................ 2,849,933
-----------
EXPENSES:
Advisory fees ............................................................ 895,023
Custodian and accounting services ........................................ 41,386
Reports to shareholders .................................................. 30,030
Audit fees and tax services .............................................. 7,090
Directors' fees and expenses ............................................. 4,612
Miscellaneous ............................................................ 10,787
-----------
Total expenses ......................................................... 988,928
-----------
NET INVESTMENT INCOME .................................................... 1,861,005
-----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on:
Investments ................................................. $ 8,525,578
Futures contracts ........................................... 710,323 9,235,901
-----------
Net unrealized appreciation of securities during the period:
Investments ................................................. 14,314,773
Futures contracts ........................................... 136,333 14,451,106
----------- -----------
Net realized and unrealized gain on securities during the period:...... 23,687,007
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......................... $25,548,012
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- ------------------
<S> <C> <C>
OPERATIONS:
Net investment income ............................................ $ 1,861,005 $ 2,820,855
Net realized gain on securities .................................. 9,235,901 36,311,508
Net unrealized appreciation of securities during
the period ..................................................... 14,451,106 21,289,379
------------- -------------
Increase in net assets resulting from operations ............... 25,548,012 60,421,742
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................................ (1,783,819) (2,737,376)
Net realized gain on securities .................................. -- (9,562,689)
------------- -------------
Decrease in net assets resulting from distributions to
shareholders ................................................... (1,783,819) (12,300,065)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ................................. 49,005,457 120,526,570
Proceeds from capital stock issued for distributions
reinvested .................................................... 1,783,819 12,300,065
------------- -------------
50,789,276 132,826,635
Cost of capital stock repurchased ................................ (3,529,682) (2,130,016)
------------- -------------
Increase in net assets resulting from capital stock transactions 47,259,594 130,696,619
------------- -------------
TOTAL INCREASE IN NET ASSETS ..................................... 71,023,787 178,818,296
NET ASSETS:
Beginning of period .............................................. 334,167,350 155,349,054
------------- -------------
End of period (including undistributed net investment income of
$252,693 and $175,507) ....................................... $ 405,191,137 $ 334,167,350
------------- -------------
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ..................................... 2,176,823 5,891,588
Shares issued for distributions reinvested ....................... 79,799 618,253
Shares of capital stock repurchased .............................. (169,963) (106,789)
------------- -------------
Increase in shares outstanding ............................... 2,086,659 6,403,052
Shares outstanding:
Beginning of period .......................................... 15,080,463 8,677,411
------------- -------------
End of period ................................................ 17,167,122 15,080,463
============= =============
</TABLE>
<PAGE> 61
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS
NOVEMBER 30, 1998 (UNAUDITED) 59
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
COMMON STOCKS - 56.78%
ADVERTISING - 0.11%
1,795 Interpublic Group Cos., Inc. ........................ $ 123,406
2,200 Omnicom Group, Inc. ................................. 117,563
----------
240,969
----------
AEROSPACE/DEFENSE - 0.79%
13,411 Boeing Co. .......................................... 544,822
881 Crane Co. ........................................... 28,468
558 EG & G, Inc. ........................................ 15,589
1,654 General Dynamics Corp. .............................. 96,035
942 Goodrich (B.F.) Co. ................................. 35,737
2,583 Lockheed Martin Corp. ............................... 267,986
932 Northrop Grumman Corp. .............................. 75,725
4,518 Raytheon Co. Class B ................................ 250,184
1,578 TRW Inc. ............................................ 86,889
3,034 United Technologies Corp. ........................... 325,207
----------
1,726,642
----------
AIRLINES - 0.19%
2,352* AMR Corp. ........................................... 155,085
2,014 Delta Air Lines, Inc. ............................... 108,127
4,414 Southwest Airlines Co. .............................. 94,901
1,213* US Airways Group, Inc. .............................. 63,076
----------
421,189
----------
APPAREL & PRODUCTS - 0.02%
1,000* Fruit of the Loom, Inc. Class A ..................... 14,750
910 Liz Claiborne, Inc. ................................. 30,826
----------
45,576
----------
APPLIANCES/FURNISHINGS - 0.06%
1,229 Maytag Corp. ........................................ 66,520
1,029 Whirlpool Corp. ..................................... 57,624
----------
124,144
----------
AUTO - CARS - 0.91%
5,334 Daimlerchrysler AG .................................. 489,065
16,056 Ford Motor Co. ...................................... 887,094
8,678 General Motors Corp. ................................ 607,460
----------
1,983,619
----------
AUTO - REPLACEMENT PARTS - 0.13%
2,008 AutoZone, Inc. ...................................... 60,491
1,000 Cooper Tire & Rubber Co. ............................ 19,563
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
AUTO - REPLACEMENT PARTS - Continued
2,326 Genuine Parts Co. ................................... $ 76,613
2,076 Goodyear Tire & Rubber Co. .......................... 117,813
882 Pep Boys-Manny, Moe & Jack .......................... 12,457
----------
286,937
----------
BANKS - NEW YORK CITY - 0.97%
10,016 Bank of New York Co., Inc. .......................... 343,048
30,309 Citigroup Inc. ...................................... 1,521,133
2,384 J. P. Morgan & Co. Inc. ............................. 254,790
----------
2,118,971
----------
BANKS - OTHER - 1.98%
23,114 BankAmerica Corp. ................................... 1,506,744
3,966 BankBoston Corp. .................................... 165,085
12,927 First Union Corp. ................................... 785,315
7,676 Fleet Financial Group, Inc. ......................... 319,993
3,488 Mellon Bank Corp. ................................... 219,526
4,397 National City Corp. ................................. 295,698
1,274 Providian Financial Corp. ........................... 116,969
1,510 Republic of New York Corp. .......................... 70,593
1,700 Union Planters Corp. ................................ 80,963
21,536 Wells Fargo & Co. ................................... 775,296
----------
4,336,182
----------
BANKS - REGIONAL - 1.75%
15,599 Bank One Corp. ...................................... 800,424
11,358 Chase Manhattan Corp. ............................... 720,523
2,130 Comerica Inc. ....................................... 137,385
3,557 Fifth Third Bancorp ................................. 236,096
2,920 Huntington Bancshares, Inc. ......................... 86,505
5,980 KeyCorp ............................................. 183,511
2,100 Mercantile Bancorporation Inc. ...................... 92,531
1,500 Northern Trust Corp. ................................ 121,125
4,073 PNC Bank Corp. ...................................... 210,014
2,900 Regions Financial Corp. ............................. 112,375
2,200 State Street Corp. .................................. 150,975
2,400 Summit Bancorporation ............................... 100,350
2,785 SunTrust Banks, Inc. ................................ 194,428
3,500 Synovus Financial Corp. ............................. 77,219
9,921 U.S. Bancorp ........................................ 365,217
2,752 Wachovia Corp. ...................................... 240,284
----------
3,828,962
----------
BEVERAGE - BREWERS/DISTRIBUTORS - 0.29%
478 Adolph Coors Class B ................................ 23,781
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
BEVERAGE - BREWERS/DISTRIBUTORS - Continued
6,396 Anheuser-Busch Companies, Inc. ...................... $ 387,757
933 Brown-Forman Corp. Class B .......................... 67,876
4,625 Seagram Co. Ltd. .................................... 158,695
----------
638,109
----------
BEVERAGE - SOFT DRINKS - 1.48%
32,599 Coca-Cola Co. ....................................... 2,283,967
5,400 Coca Cola Enterprises, Inc. ......................... 204,188
19,461 PepsiCo, Inc. ....................................... 752,897
----------
3,241,052
----------
BROADCASTING - 0.92%
9,502* CBS Corp. ........................................... 283,278
3,300* Clear Channel Communications, Inc. .................. 154,275
4,884 Comcast Corp. Class A Special ....................... 237,484
8,063* Media One Group Inc. ................................ 326,552
6,967 Tele-Comm Liberty Media Group
Class A ............................................ 294,356
6,609 U S WEST, Inc. ...................................... 411,410
4,750* Viacom, Inc Class B ................................. 316,172
----------
2,023,527
----------
BUILDING MATERIALS - 0.19%
505 Armstrong World Industries, Inc. .................... 33,646
4,684 Lowe's Companies, Inc. .............................. 197,899
4,534 Masco Corp. ......................................... 130,919
2,268 Sherwin-Williams Co. ................................ 64,354
----------
426,818
----------
CHEMICAL - MAJOR - 0.88%
3,019 Dow Chemical Co. .................................... 293,975
14,962 E.I. du Pont de Nemours and Co. ..................... 879,018
1,253 Hercules, Inc. ...................................... 41,192
7,908 Monsanto Co. ........................................ 358,331
1,710 Morton International, Inc. .......................... 50,339
2,335 PPG Industries, Inc. ................................ 142,873
2,329 Rohm and Haas Co. ................................... 81,369
1,820 Union Carbide Corp. ................................. 81,445
----------
1,928,542
----------
CHEMICAL - MISCELLANEOUS - 0.21%
3,022 Air Products and Chemicals, Inc. .................... 115,214
1,088 Eastman Chemical Co. ................................ 63,036
1,706 Ecolab Inc. ......................................... 52,779
400* FMC Corp. ........................................... 23,250
</TABLE>
<PAGE> 62
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS
60 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
CHEMICAL - MISCELLANEOUS - Continued
731 Great Lakes Chemical Corp. .......................... $ 29,194
573 Millipore Corp. ..................................... 16,116
904 Nalco Chemical Co. .................................. 30,228
2,086 Praxair, Inc. ....................................... 79,659
1,336 Sigma Aldrich Corp. ................................. 42,919
1,000 W.R. Grace & Co. .................................... 16,500
----------
468,895
----------
COAL - 0.01%
100 NACCO Industries, Inc. Class A ...................... 8,706
----------
CONGLOMERATES - 0.68%
7,460 Allied Signal Inc. .................................. 328,240
1,600 ITT Industries, Inc. ................................ 57,600
1,581 Loews Corp. ......................................... 158,100
4,400 RJR Nabisco Holdings Corp. .......................... 126,775
2,251 Tenneco Inc. ........................................ 80,192
2,156 Textron Inc. ........................................ 167,494
8,545 Tyco International Ltd. ............................. 562,368
----------
1,480,769
----------
CONSUMER FINANCE - 0.15%
900 Capital One Financial Corp. ......................... 99,000
10,061 MBNA Corp. .......................................... 228,259
----------
327,259
----------
CONTAINERS - METAL/GLASS - 0.13%
400 Ball Corp. .......................................... 17,100
3,092 Corning Inc. ........................................ 124,067
1,693 Crown Cork & Seal Co., Inc. ......................... 57,138
700 Owens Corning ....................................... 26,119
2,000* Owens-Illinois, Inc. ................................ 64,250
----------
288,674
----------
CONTAINERS - PAPER - 0.05%
700 Bemis Co., Inc. ..................................... 26,469
1,082* Sealed Air Corp. .................................... 47,743
800 Temple-Inland Inc. .................................. 42,950
----------
117,162
----------
COSMETICS/TOILETRIES - 0.41%
699 Alberto-Culver Co. Class B .......................... 17,912
3,514 Avon Products, Inc. ................................. 142,756
14,892 Gillette Co. ........................................ 684,102
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
COSMETICS/TOILETRIES - Continued
1,471 International Flavors &
Fragrances, Inc. ................................... $ 61,598
----------
906,368
----------
DRUGS - 4.95%
875 Allergan, Inc. ...................................... 53,266
1,114* ALZA Corp. .......................................... 58,206
17,456 American Home Products Corp. ........................ 929,532
3,326* Amgen Inc. .......................................... 250,281
792 Bausch & Lomb Inc. .................................. 43,956
13,214 Bristol Myers Squibb Co. ............................ 1,619,541
14,560 Eli Lilly and Co. ................................... 1,305,850
15,737 Merck & Co., Inc. ................................... 2,437,268
6,711 Pharmacia & Upjohn, Inc. ............................ 349,391
17,342 Pfizer, Inc. ........................................ 1,935,801
9,754 Schering-Plough Corp. ............................... 1,037,582
10,854 Warner-Lambert Co. .................................. 819,477
----------
10,840,151
----------
ELECTRICAL EQUIPMENT - 2.10%
2,872 AMP Inc. ............................................ 138,933
2,184* Cabletron Systems, Inc. ............................. 30,576
5,788 Emerson Electric Co. ................................ 376,220
43,102 General Electric Co. ................................ 3,900,731
510 National Service Industries, Inc. ................... 19,699
1,096 Raychem Corp. ....................................... 37,333
750 Thomas & Betts Corp. ................................ 32,484
1,296 W. W. Grainger Inc. ................................. 54,756
----------
4,590,732
----------
ELECTRONIC INSTRUMENTS - 0.05%
606 Perkin-Elmer Corp. .................................. 56,510
650 Tektronix, Inc. ..................................... 17,428
2,176* Thermo Electron Corp. ............................... 36,720
----------
110,658
----------
ENTERTAINMENT - 0.89%
1,339* Harrah's Entertainment, Inc. ........................ 20,838
1,766 Hasbro, Inc. ........................................ 61,920
936* King World Productions, Inc. ........................ 25,506
3,861 Mattel, Inc. ........................................ 133,446
7,963 Time Warner Inc. .................................... 842,087
27,112 Walt Disney Co. ..................................... 872,668
----------
1,956,465
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
FINANCE COMPANIES - 0.38%
4,639 Associates First Capital Corp. ...................... $ 361,262
6,576 Household International, Inc. ....................... 257,286
2,800 SunAmerica, Inc. .................................... 221,900
----------
840,448
----------
FINANCIAL SERVICES - 0.35%
6,121 American Express Co. ................................ 612,483
1,359 H & R Block Inc. .................................... 61,070
1,500 Countrywide Credit Industries, Inc. ................. 74,250
117 Waddell & Reed Financial, Inc. ......................
Class A ............................................ 2,793
506* Waddell & Reed Financial, Inc. ......................
Class B ............................................ 11,828
----------
762,424
----------
FOODS - 1.15%
7,923 Archer Daniels Midland Co. .......................... 145,585
3,838 BestFoods ........................................... 223,084
5,950 Campbell Soup Co. ................................... 339,894
6,482 ConAgra, Inc. ....................................... 203,778
2,034 General Mills, Inc. ................................. 153,567
4,834 H J Heinz Co. ....................................... 281,883
1,844 Hershey Foods Corp. ................................. 124,009
5,432 Kellogg Co. ......................................... 198,947
3,216 Pioneer Hi - Bred International Inc. ................ 96,279
1,819 Quaker Oats Co. ..................................... 111,640
4,100 Ralston Purina Co. .................................. 142,731
6,196 Sara Lee Corp. ...................................... 361,692
1,576 Wm. Wrigley Jr. Co. ................................. 138,885
----------
2,521,974
----------
FOOTWEAR - 0.07%
3,831 NIKE, Inc. Class B .................................. 153,240
700* Reebok International Ltd. ........................... 11,156
----------
164,396
----------
FREIGHT - 0.07%
1,954* FDX Corp. ........................................... 126,766
963 Ryder System, Inc. .................................. 27,505
----------
154,271
----------
FUNERAL SERVICES - 0.06%
3,445 Service Corp. International ......................... 128,757
----------
</TABLE>
<PAGE> 63
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS
NOVEMBER 30, 1998 (UNAUDITED) 61
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
GOLD MINING - 0.09%
4,983 Barrick Gold Corp. .................................. $ 99,660
3,100 Battle Mountain Gold Co. ............................ 14,532
2,871 Homestake Mining Co. ................................ 30,863
3,279 Placer Dome Inc. .................................... 47,750
----------
192,805
----------
GOVERNMENT SPONSORED - 0.76%
9,080 Federal Home Loan Mortgage Corp. .................... 549,340
13,825 Federal National Mortgage
Association ........................................ 1,005,769
2,300 SLM Holding Corp. ................................... 101,200
----------
1,656,309
----------
HARDWARE & TOOLS - 0.06%
1,184 Black & Decker Corp. ................................ 64,158
784 Snap-on Inc. ........................................ 26,656
1,188 Stanley Works ....................................... 36,308
----------
127,122
----------
HEALTHCARE - 0.28%
2,650 Cardinal Health, Inc. ............................... 181,856
1,400 HCR Manor Care Inc. ................................. 44,450
5,568 HealthSouth Corp. ................................... 74,820
2,169 Humana Inc. ......................................... 42,974
2,201 IMS Health Inc. ..................................... 146,091
2,605 United HealthCare Corp. ............................. 117,551
----------
607,742
----------
HEAVY DUTY TRUCKS/PARTS - 0.11%
500 Cummins Engine Co., Inc. ............................ 18,562
2,153 Dana Corp. .......................................... 83,967
978 Eaton Corp. ......................................... 66,810
927 Navistar International Corp. ........................ 23,986
1,088 PACCAR Inc. ......................................... 49,504
----------
242,829
----------
HOME BUILDERS - 0.03%
832 Centex Corp. ........................................ 29,692
500 Kaufman & Broad Home Corp. .......................... 12,594
600 Pulte Corp. ......................................... 15,262
----------
57,548
----------
HOSPITAL MANAGEMENT - 0.16%
8,536 Columbia/HCA Healthcare Corp. ....................... 210,199
400 Shared Medical Systems Corp. ........................ 20,950
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
HOSPITAL MANAGEMENT - Continued
4,081 Tenet Healthcare Corp. .............................. $ 120,645
----------
351,794
----------
HOSPITAL SUPPLIES - 1.61%
20,348 Abbott Laboratories ................................. 976,704
719 Bard (C. R.), Inc. .................................. 32,939
3,810 Baxter International Inc. ........................... 242,173
3,294 Becton, Dickinson and Co. ........................... 139,995
1,500 Biomet, Inc. ........................................ 57,375
2,573 Boston Scientific Corp. ............................. 127,363
17,848 Johnson & Johnson ................................... 1,450,150
1,022 Mallinckrodt, Inc. .................................. 33,023
6,232 Medtronic, Inc. ..................................... 421,829
1,147 St. Jude Medical, Inc. .............................. 33,335
----------
3,514,886
----------
HOUSEHOLD PRODUCTS - 1.51%
1,348 Clorox Co. .......................................... 149,712
3,916 Colgate-Palmolive Co. ............................... 335,308
5,343 Minnesota Mining & Manufacturing ....................
Co ................................................. 429,110
2,110 Newell Co. .......................................... 93,368
17,738 Procter & Gamble Co. ................................ 1,554,292
1,990 Rubbermaid, Inc. .................................... 65,794
800 Tupperware Corp. .................................... 13,950
8,432 Unilever N V - ADR .................................. 651,899
----------
3,293,433
----------
INFORMATION PROCESSING - 0.09%
5,700 HBO & Co. ........................................... 142,144
3,556 Parametric Technology Corp. ......................... 60,452
----------
202,596
----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 2.11%
2,700 BMC Software, Inc. .................................. 137,869
32,614 Microsoft Corp. ..................................... 3,978,908
12,920 Oracle Corp. ........................................ 442,510
3,000 Peoplesoft Inc. ..................................... 61,687
----------
4,620,974
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 1.00%
1,828 Apple Computer, Inc. ................................ $ 58,382
22,072 Compaq Computer Corp. ............................... 717,324
16,756 Dell Computer Corp. ................................. 1,018,974
2,499 Silicon Graphics, Inc. .............................. 30,613
4,978 Sun Microsystems, Inc. .............................. 368,683
----------
2,193,976
----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 0.41%
4,029 Automatic Data Processing, Inc. ..................... 310,233
932 Ceridian Corp. ...................................... 60,638
6,500 Electronic Data Systems Corp. ....................... 253,500
5,898 First Data Corp. .................................... 157,403
2,200 Paychex, Inc. ....................................... 109,450
----------
891,224
----------
INFORMATION PROCESSING -
DATA SERVICES - 2.43%
900 Adobe Systems Inc. .................................. 40,275
635 Autodesk, Inc. ...................................... 23,098
11,396 Cendant Corp. ....................................... 216,524
7,433 Computer Associates International,
Inc ................................................ 328,910
2,070 Computer Sciences Corp. ............................. 118,249
700 Data General Corp. .................................. 12,688
6,622 E M C Corp. ......................................... 480,095
2,100 Gateway 2000, Inc. .................................. 117,862
13,765 Hewlett Packard Co. ................................. 863,754
1,665 Honeywell Inc. ...................................... 133,096
12,374 International Business Machines ..................... 2,041,710
4,684 Novell, Inc. ........................................ 77,579
3,606 Pitney Bowes Inc. ................................... 201,936
3,218 Seagate Technology .................................. 94,931
3,400 Unisys Corp. ........................................ 96,900
4,383 Xerox Corp. ......................................... 471,172
----------
5,318,779
----------
INFORMATION PROCESSING -
NETWORKING - 0.89%
2,900 Ascend Communications Inc. .......................... 162,944
20,574 Cisco Systems, Inc. ................................. 1,550,765
1,947 General Insturment Corp. ............................ 54,759
4,744 3Com Corp. .......................................... 183,534
----------
1,952,002
----------
</TABLE>
<PAGE> 64
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS
62 NOVEMBER 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
INSURANCE - CASUALTY - 0.23%
2,184 Chubb Corp. ......................................... $ 153,016
1,000 Progressive Corp. ................................... 148,375
1,953 SAFECO Corp. ........................................ 83,857
3,168 St. Paul Companies, Inc. ............................ 111,672
----------
496,920
----------
INSURANCE - LIFE - 0.32%
1,997 Aetna Inc. .......................................... 154,393
4,307 Conseco Inc. ........................................ 142,669
1,596 Jefferson-Pilot Corp. ............................... 108,927
1,440 Lincoln National Corp. .............................. 120,510
2,070 Torchmark Corp. ..................................... 78,660
887 Transamerica Corp. .................................. 94,244
----------
699,403
----------
INSURANCE - MISCELLANEOUS - 0.23%
997 General Re Corp. .................................... 232,799
1,344 MBIA, Inc. .......................................... 87,024
1,506 MGIC Investment Corp. ............................... 66,170
2,014 UNUM Corp. .......................................... 108,504
----------
494,497
----------
INSURANCE - MULTILINE - 1.22%
11,092 Allstate Corp. ...................................... 451,999
13,935 American International Group, Inc. .................. 1,309,890
2,352 Aon Corp. ........................................... 135,534
2,929 CIGNA Corp. ......................................... 227,913
2,200 Cincinnati Financial Corp. .......................... 85,937
3,206 Hartford Financial Servics Group .................... 176,931
3,426 Marsh & McLennan Companies Inc. ..................... 199,350
2,000 Provident Companies Inc. ............................ 76,875
----------
2,664,429
----------
LEISURE TIME - 0.03%
1,343 Brunswick Corp. ..................................... 29,546
2,400* Mirage Resorts, Inc. ................................ 35,700
----------
65,246
----------
LODGING - 0.08%
3,510 Hilton Hotels Corp. ................................. 76,342
3,288 Marriott International Inc. ......................... 96,585
----------
172,927
----------
MACHINERY - AGRICULTURE - 0.06%
1,011 Case Corp. .......................................... 24,517
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
MACHINERY - AGRICULTURE - Continued
3,270 Deere & Co. ......................................... $ 114,245
----------
138,762
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.14%
4,840 Caterpillar Inc. .................................... 239,277
1,003 Fluor Corp. ......................................... 42,941
526 Foster Wheeler Corp. ................................ 9,008
700 Harnischfeger Industries Inc. ....................... 7,000
----------
298,226
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.31%
400 Aeroquip-Vickers, Inc. .............................. 14,550
300 Briggs & Stratton Corp. ............................. 15,131
1,507 Cooper Industries, Inc. ............................. 74,031
2,920 Dover Corp. ......................................... 104,025
3,260 Illinois Tool Works Inc. ............................ 207,214
2,134 Ingersoll-Rand Co. .................................. 99,898
1,087 Johnson Controls, Inc. .............................. 62,910
1,595 Pall Corp. .......................................... 37,084
1,504 Parker Hannifin Corp. ............................... 52,264
800 Timken Co. .......................................... 15,400
----------
682,507
----------
MACHINE TOOLS - 0.01%
544 Milacron Inc. ....................................... 11,016
----------
MEDICAL TECHNOLOGY - 0.08%
2,006 Guidant Corp. ....................................... 172,140
----------
MERCHANDISE - DRUG - 0.36%
5,178 CVS Corp. ........................................... 255,664
497 Longs Drug Stores Corp. ............................. 17,706
3,462 Rite Aid Corp. ...................................... 160,550
6,604 Walgreen Co. ........................................ 354,552
----------
788,472
----------
MERCHANDISE - SPECIALTY - 1.11%
889 American Greetings Corp. Class A .................... 37,616
1,351 Circuit City Stores, Inc. ........................... 48,889
1,500* Consolidated Stores Corp. ........................... 32,250
2,866* CostCo Companies, Inc. .............................. 179,841
2,475 Dollar General Corp. ................................ 58,936
2,257 Fortune Brands, Inc. ................................ 76,879
5,147 Gap, Inc. ........................................... 378,626
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
MERCHANDISE - SPECIALTY - Continued
19,412 Home Depot, Inc. .................................... $ 965,747
1,806 Ikon Office Solutions Inc. .......................... 17,608
491 Jostens, Inc. ....................................... 11,508
2,100* Kohl's Corp. ........................................ 103,294
3,044 Limited, Inc. ....................................... 88,086
1,966 Nordstrom, Inc. ..................................... 73,233
3,800* Staples, Inc. ....................................... 132,763
4,156 TJX Companies, Inc. ................................. 106,498
1,282 Tandy Corp. ......................................... 57,770
3,433* Toys "R" Us, Inc. ................................... 67,802
----------
2,437,346
----------
MERCHANDISING - DEPARTMENT - 0.28%
5,852 Dayton Hudson Corp. ................................. 263,340
1,430 Dillards, Inc. Class A .............................. 49,157
2,816* Federated Department Stores, Inc. ................... 117,392
3,057 May Department Stores Co. ........................... 184,375
----------
614,264
----------
MERCHANDISING - FOOD - 0.34%
3,203 Albertsons, Inc. .................................... 182,771
3,642 American Stores Co. ................................. 122,235
500 Great Atlantic & Pacific Tea Co., Inc. .............. 13,656
3,342 Kroger Co. .......................................... 177,335
1,592 Supervalu Inc. ...................................... 41,093
4,414 SYSCO Corp. ......................................... 118,902
1,979 Winn-Dixie Stores, Inc. ............................. 79,778
----------
735,770
----------
MERCHANDISING - MASS - 1.31%
2,000 Fred Meyer, Inc. .................................... 101,750
3,348 J.C. Penney Co., Inc. ............................... 184,140
6,576* KMart Corp. ......................................... 100,284
5,196 Sears Roebuck and Co. ............................... 246,485
1,861* Venator Group, Inc. ................................. 14,656
29,574 Wal-Mart Stores, Inc. ............................... 2,227,292
----------
2,874,607
----------
METALS - ALUMINUM - 0.15%
3,043 Alcan Aluminium Ltd. ................................ 81,020
2,490 Aluminum Co. of America ............................. 184,571
942 Reynolds Metals Co. ................................. 51,692
----------
317,283
----------
</TABLE>
<PAGE> 65
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS
NOVEMBER 30, 1998 (UNAUDITED) 63
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
METALS - COPPER - 0.05%
600 ASARCO Inc. ......................................... $ 11,625
2,273 Newmont Mining Corp. ................................ 45,176
759 Phelps Dodge Corp. .................................. 43,026
----------
99,827
----------
METALS - MISCELLANEOUS - 0.05%
1,366 Cyprus Amax Minerals Co. ............................ 15,539
1,874 Engelhard Corp. ..................................... 36,192
2,453* Freeport-McMoRan Copper & Gold
Inc. Class B ....................................... 32,042
2,207 Inco Limited ........................................ 25,518
----------
109,291
----------
METALS - STEEL - 0.08%
2,579 Allegheny Teldyne Inc. .............................. 53,030
1,400* Armco Inc. .......................................... 5,512
1,695* Bethlehem Steel Corp. ............................... 13,984
1,167 Nucor Corp. ......................................... 49,014
1,215 USX-US Steel Group, Inc. ............................ 29,692
1,300 Worthington Industries, Inc. ........................ 15,844
----------
167,076
----------
MOBILE HOMES - 0.01%
500 Fleetwood Enterprises, Inc. ......................... 16,844
----------
MISCELLANEOUS - 0.10%
3,900 BB & T Corp. ........................................ 144,056
2,000 Equifax Inc. ........................................ 83,000
----------
227,056
----------
MULTIMEDIA - 0.01%
702 Meredith Corp. ...................................... 27,246
----------
NATURAL GAS-DIVERSIFIED - 0.07%
2,762 Coastal Corp. ....................................... 96,325
300 Eastern Enterprises ................................. 12,169
1,441 Sonat Inc. .......................................... 42,779
----------
151,273
----------
OIL - INTEGRATED DOMESTIC - 0.80%
1,164 Amerada Hess Corp. .................................. 64,602
12,588 Amoco Corp. ......................................... 741,905
962 Ashland Oil, Inc. ................................... 46,777
4,308 Atlantic Richfield Co. .............................. 286,482
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
OIL - INTEGRATED DOMESTIC - Continued
2,363 Burlington Resources, Inc. .......................... $ 84,182
667 Kerr-McGee Corp. .................................... 26,346
4,707 Occidental Petroleum Corp. .......................... 95,317
1,373* Oryx Energy Co. ..................................... 18,965
632 Pennzoil Co. ........................................ 23,463
3,384 Phillips Petroleum Co. .............................. 142,128
3,811 USX-Marathon Group .................................. 108,137
3,160 Unocal Corp. ........................................ 107,045
----------
1,745,349
----------
OIL - INTEGRATED INTERNATIONAL - 2.64%
8,659* Chevron Corp. ....................................... 724,109
32,228 Exxon Corp. ......................................... 2,419,115
10,300 Mobil Corp. ......................................... 887,731
28,392 Royal Dutch Pete Co. - ADR .......................... 1,334,424
7,074 Texaco Inc. ......................................... 407,197
----------
5,772,576
----------
OIL - SERVICES - 0.27%
4,220 Baker Hughes Inc. ................................... 77,279
5,791 Halliburton Co. ..................................... 170,111
781 McDermott International, Inc. ....................... 20,941
1,129* Rowan Companies, Inc. ............................... 11,078
7,202 Schlumberger Ltd. ................................... 321,839
----------
601,248
----------
OIL/GAS PRODUCERS - 0.08%
1,600 Anadarko Petroleum Corp. ............................ 45,100
1,300 Apache Corp. ........................................ 29,900
700 Helmerich & Payne, Inc. ............................. 12,075
1,204 Sunoco Inc. ......................................... 40,785
3,311 Union Pacific Resources Group Inc. .................. 37,042
----------
164,902
----------
PAPER/FOREST PRODUCTS - 0.58%
1,563 Avery Dennison Corp. ................................ 74,926
766 Boise Cascade Corp. ................................. 24,273
1,307 Champion International Corp. ........................ 54,322
2,938 Fort James Corp. .................................... 114,949
1,233 Georgia-Pacific Corp. ............................... 69,973
4,062 International Paper Co. ............................. 176,443
7,234 Kimberly-Clark Corp. ................................ 380,689
1,443 Louisiana Pacific Corp. ............................. 24,531
1,368 Mead Corp. .......................................... 41,468
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
PAPER/FOREST PRODUCTS - Continued
415 Potlatch Corp. ...................................... $ 15,692
1,358 Smurfit-Stone Container Corp. ....................... 19,101
944 Union Camp Corp. .................................... 61,065
1,321 Westvaco Corp. ...................................... 37,153
2,644 Weyerhaeuser Co. .................................... 132,530
1,478 Willamette Industries, Inc. ......................... 51,638
----------
1,278,753
----------
PHOTOGRAPHY - 0.15%
4,234 Eastman Kodak Co. ................................... 307,230
646 Polaroid Corp. ...................................... 13,727
----------
320,957
----------
POLLUTION CONTROL - 0.20%
2,259 Browning-Ferris Industries, Inc. .................... 66,640
4,400 Laidlaw Inc. ........................................ 43,725
7,562 Waste Management, Inc. .............................. 324,221
----------
434,586
----------
PUBLISHING - NEWS - 0.27%
1,227 Dow Jones & Co., Inc. ............................... 58,666
3,738 Gannett Co., Inc. ................................... 241,334
996 Knight-Ridder, Inc. ................................. 51,232
2,458 New York Times Co. Class A .......................... 76,352
1,167 Times Mirror Co. .................................... 68,415
1,601 Tribune Co. ......................................... 102,664
----------
598,663
----------
PUBLISHING/PRINTING - 0.17%
1,100 Deluxe Corp. ........................................ 38,225
2,286 Dun & Bradstreet Corp ............................... 69,009
971 Harcourt General, Inc. .............................. 50,249
1,278 McGraw-Hill, Inc. ................................... 114,381
1,196 Moore Corp. Ltd. .................................... 13,081
1,796 R R Donnelley and Son ............................... 76,218
----------
361,163
----------
RAILROAD - 0.29%
6,299 Burlington Northern Santa Fe ........................ 214,166
2,876 CSX Corp. ........................................... 119,893
5,005 Norfolk Southern Corp. .............................. 152,027
3,246 Union Pacific Corp. ................................. 157,837
----------
643,923
----------
</TABLE>
<PAGE> 66
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS CONTINUED
64 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
RESTAURANTS - 0.36%
1,857 Darden Restaurants, Inc. ........................... $ 29,364
9,061 McDonald's Corp. ................................... 634,836
1,976* Tricon Global Restaurants, Inc. .................... 90,032
1,700 Wendy's International, Inc. ........................ 34,000
-----------
788,232
-----------
SAVINGS & LOAN - 0.18%
825 Golden West Financial Corp. ........................ 78,117
7,958 Washington Mutual, Inc. ............................ 308,373
-----------
386,490
-----------
SECURITIES RELATED - 0.63%
1,500 Bear Stearns Co., Inc. ............................. 63,000
3,500 Charles Schwab Corp. ............................... 197,313
3,400 Franklin Resources, Inc. ........................... 145,350
1,600 Lehman Brothers Holdings, Inc. ..................... 79,900
4,630 Merrill Lynch & Co., Inc. .......................... 347,250
7,812 Morgan Stanley, Dean Witter,
Discover and Co. .................................. 544,887
-----------
1,377,700
-----------
SEMICONDUCTOR EQUIPMENT - 0.10%
4,866* Applied Materials, Inc. ............................ 188,557
1,100* KLA-Tencor Corp. ................................... 37,469
-----------
226,026
-----------
SEMICONDUCTORS - 1.66%
1,957* Advanced Micro Devices, Inc. ....................... 54,184
22,202 Intel Corp. ........................................ 2,389,490
1,910* LSI Logic Corp. .................................... 29,605
2,844* Micron Technology, Inc. ............................ 117,493
7,890 Motorola, Inc. ..................................... 489,180
2,237* National Semiconductor Corp. ....................... 32,157
2,517 Rockwell International Corp. ....................... 123,176
5,128 Texas Instruments Inc. ............................. 391,651
-----------
3,626,936
-----------
TELECOMMUNICATIONS - 1.96%
7,549* Airtouch Communications, Inc. ...................... 431,708
3,584 ALLTEL Corp. ....................................... 189,952
1,124* Andrew Corp. ....................................... 17,984
2,278 Frontier Corp. ..................................... 68,625
1,100 Harris Corp. ....................................... 41,731
17,408 Lucent Technologies, Inc. .......................... 1,498,176
23,529* MCI Worldcom Inc. .................................. 1,388,211
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
TELECOMMUNICATIONS - Continued
3,800* Nextel Communications, Inc. ........................
Class A............................................ $ 81,700
8,583 Northern Telecom Ltd. .............................. 400,719
1,081 Scientific-Atlanta, Inc. ........................... 20,944
2,604* Tellabs, Inc. ...................................... 140,779
-----------
4,280,529
-----------
TEXTILE - PRODUCTS - 0.05%
500 Russell Corp. ...................................... 11,907
300 Springs Industries, Inc. Class A ................... 11,681
1,600 V F Corp. .......................................... 78,500
-----------
102,088
-----------
TOBACCO - 0.86%
32,229 Philip Morris Cos Inc. ............................. 1,802,810
2,427 UST Inc. ........................................... 84,338
-----------
1,887,148
-----------
UTILITIES - COMMUNICATION - 3.23%
23,954 AT & T Corp. ....................................... 1,492,634
14,618 Ameritech Corp. .................................... 791,199
20,590 Bell Atlantic Corp. ................................ 1,145,319
13,027 BellSouth Corp. .................................... 1,136,606
12,787 GTE Corp. .......................................... 792,794
25,914 SBC Communications, Inc. ........................... 1,242,252
5,720 Sprint Corp. FON Group ............................. 416,130
2,860 Sprint Corp. PCS Group ............................. 45,760
-----------
7,062,694
-----------
UTILITIES - ELECTRIC - 1.45%
2,300* AES Corp. .......................................... 105,225
1,825 Ameren Corp. ....................................... 75,167
2,549 American Electric Power, Inc. ...................... 118,210
1,998 Baltimore Gas and Electric Co. ..................... 61,314
2,006 Carolina Power & Light Co. ......................... 93,028
2,892 Central & South West Corp. ......................... 79,530
2,118 Cinergy Corp. ...................................... 73,203
3,099 Consolidated Edison, Inc. .......................... 157,468
1,893 DTE Energy Co. ..................................... 82,582
2,608 Dominion Resources, Inc. ........................... 120,457
4,804 Duke Energy Corp. .................................. 300,550
4,717 Edison International ............................... 129,718
3,327 Entergy Corp. ...................................... 97,523
2,370 FPL Group, Inc. .................................... 145,163
3,126 FirstEnergy Corp. .................................. 96,711
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- --------- -----------
<S> <C> <C>
UTILITIES - ELECTRIC - Continued
1,654 GPU Inc. ........................................... $ 72,466
3,989 Houston Industries, Inc. ........................... 126,152
1,500 New Century Energies, Inc. ......................... 72,094
2,400* Niagara Mohawk Power Corp. ......................... 36,900
1,968 Northern States Power Co. .......................... 53,505
5,035 P G & E Corp. ...................................... 155,770
2,046 P P & L Resources Inc. ............................. 55,881
4,045 PacifiCorp ......................................... 75,844
2,977 Peco Energy Co. .................................... 119,452
3,081 Public Services Enterprise Group ................... 120,159
9,208 Southern Co. ....................................... 271,636
3,694 Texas Utilities Co. ................................ 164,614
2,900 Unicom Corp. ....................................... 109,293
-----------
3,169,615
-----------
UTILITIES - GAS, DISTRIBUTION - 0.01%
590 NICOR Inc. ......................................... 24,817
-----------
UTILITIES - GAS, PIPELINE - 0.29%
1,130 Columbia Energy Group .............................. 64,127
1,295 Consolidated Natural Gas Co. ....................... 70,335
4,347 Enron Corp. ........................................ 228,489
400 ONEOK Inc. ......................................... 13,925
500 Peoples Energy Corp. ............................... 18,844
3,234 Sempra Energy ...................................... 81,052
5,626 Williams Companies, Inc. ........................... 162,099
-----------
638,871
-----------
TOTAL COMMON STOCKS
(Cost $76,707,605) ................................. 124,219,061
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ---------- -----------
<S> <C> <C>
CORPORATE BONDS - 10.97%
AIRLINES - 1.42%
$3,001,000 Continental Airlines,
7.08% due 11/01/2004............................... 3,104,234
-----------
BANKS - OTHER - 0.67%
1,500,000 Santander Finance Issuance,
6.38% due 02/15/2011............................... 1,474,065
-----------
</TABLE>
<PAGE> 67
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1998 (Unaudited) 65
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
BANKS - REGIONAL - 0.39%
$ 850,000 First Union National,
5.80% due 12/01/2008............................... $ 856,970
-----------
BEVERAGE - SOFT DRINKS - 0.23%
475,000 Coca Cola Enterprises, Inc.,
7.88% due 02/01/2002 .............................. 505,329
-----------
CONSUMER FINANCE - 0.47%
1,000,000 Associates Corp. of North America,
6.25% due 11/01/2008 .............................. 1,031,370
-----------
FINANCE COMPANIES - 0.95%
1,500,000 Finova Capital Corp.,
9.13% due 02/27/2002 .............................. 1,627,110
455,000 Markel Cap Trust I,
8.71% due 01/01/2046 .............................. 460,496
-----------
2,087,606
-----------
INFORMATION PROCESSING -
DATA SERVICES - 0.37%
800,000 Cendant Corp.,
7.75% due 12/01/2003 .............................. 799,840
-----------
LODGING - 0.41%
900,000 Marriott International, Inc.,
6.88% due 11/15/2005 .............................. 903,547
-----------
MERCHANDISE - SPECIALTY - 1.69%
2,000,000 Goodrich (B.F.),
7.10% due 11/15/2027 .............................. 2,161,700
1,500,000 Tandy Corp.,
6.95% due 09/01/2007 .............................. 1,540,380
-----------
3,702,080
-----------
OIL - INTEGRATED DOMESTIC - 0.95%
2,000,000 Union Oil Co. California,
7.20% due 05/15/2005 .............................. 2,071,300
-----------
SECURITIES RELATED - 0.42%
925,000 Paine Webber Group Inc.,
6.45% due 12/01/2003 .............................. 915,658
-----------
TELECOMMUNICATIONS - 1.71%
1,500,000 Tele-Communications Inc.,
7.25% due 08/01/2005 .............................. 1,630,515
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
TELECOMMUNICATIONS - Continued
$2,000,000 360 Communications Co.,
7.13% due 03/01/2003................................ $ 2,104,900
-----------
3,735,415
-----------
UTILITIES - ELECTRIC - 0.58%
1,240,646 Texas Utilities Electric,
6.62% due 07/01/2001............................... 1,266,045
-----------
UTILITIES - GAS, PIPELINE - 0.71%
1,500,000 Consolidated Natural Gas Co.,
6.00% due 10/15/2010............................... 1,547,250
-----------
TOTAL CORPORATE BONDS
(Cost $23,240,912).................................. 24,000,709
-----------
UNITED STATES GOVERNMENT -
LONG TERM- 27.47%
GOVERNMENT SPONSORED - 18.17%
Federal Home Loan Mortgage Corp:
5,000,000 5.50% due 12/15/2028............................... 4,929,688
3,000,000 5.50% due 08/13/2001............................... 3,044,070
3,000,000 5.13% due 10/15/2008............................... 2,950,770
Federal Home Loan Mortgage Corp,
(Pools/REMICS)
139,049 7.50% due 09/01/2025............................... 142,829
347,218 7.50% due 09/01/2025............................... 356,655
281,718 7.50% due 09/01/2025............................... 289,375
429,465 7.50% due 09/01/2025............................... 441,138
Federal National Mortgage Association:
10,000,000 8.50% due 12/10/2028............................... 10,437,500
5,000,000 7.50% due 12/10/2028............................... 5,140,625
5,000,000 7.00% due 12/10/2028............................... 5,101,565
2,000,000 7.00% due 05/10/2001............................... 2,015,940
940,000 5.53% due 12/01/2003............................... 942,938
4,000,000 4.63% due 10/15/2001............................... 3,973,760
-----------
39,766,853
-----------
UNITED STATES BONDS & NOTES - 9.30%
United States Treasury Bonds,
1,500,000 8.13% due 08/15/2019............................... 2,017,965
United States Treasury Notes:
4,000,000 6.50% due 08/15/2005............................... 4,405,640
2,000,000 6.25% due 02/28/2002............................... 2,094,680
1,500,000 6.25% due 02/15/2003............................... 1,588,830
1,000,000 5.75% due 08/15/2003............................... 1,045,470
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
UNITED STATES BONDS & NOTES - Continued
United States Treasury Notes:
$1,000,000 5.75% due 11/30/2002............................... $ 1,039,060
2,000,000 5.63% due 05/15/2008............................... 2,127,500
1,000,000 5.50% due 04/15/2000............................... 1,011,560
1,000,000 5.50% due 02/15/2008............................... 1,055,940
4,000,000 4.25% due 11/15/2003............................... 3,957,500
-----------
20,344,145
-----------
TOTAL UNITED STATES GOVERNMENT
LONG TERM
(Cost $58,695,437).................................. 60,110,998
-----------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 18.71%
AEROSPACE/DEFENSE - 4.20%
9,200,000 Lockheed Martin Corp.,
5.63% due 12/10/1998............................... 9,187,012
-----------
CONSUMER FINANCE - 3.65%
8,000,000 Commercial Credit Co.,
5.15% due 12/10/1998............................... 7,989,672
-----------
FINANCE COMPANIES - 3.32%
5,000,000 Ford Credit Europe PLC,
4.94% due 12/01/1998............................... 5,000,000
2,265,000 General Electric Capital Services, Inc.,
4.95% due 12/04/1998............................... 2,264,065
-----------
7,264,065
-----------
METALS - MISCELLANEOUS - 1.06%
2,311,000 Engelhard Corp.,
5.50% due 12/01/1998............................... 2,311,000
-----------
SECURITIES RELATED - 4.20%
9,200,000 Merrill Lynch & Co.,
5.15% due 12/10/1998............................... 9,188,123
-----------
UTILITIES - COMMUNICATION - 2.28%
4,988,000 Cincinnati Bell, Inc.,
5.10% due 12/03/1998............................... 4,986,586
-----------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $41,126,107).................................. 40,926,458
-----------
</TABLE>
<PAGE> 68
================================================================================
ASSET ALLOCATION FUND - STATEMENT OF NET ASSETS CONTINUED
66 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
UNITED STATES GOVERNMENT -
SHORT TERM - 0.09%
UNITED STATES TREASURY BILLS - 0.09%
United States Treasury Bills:
$ 100,000 4.00% due 12/24/1998............................... $ 99,744
100,000 3.75% due 12/10/1998............................... 99,906
-----------
199,650
-----------
TOTAL UNITED STATES GOVERNMENT -
SHORT TERM
(Cost $199,650)..................................... 199,650
-----------
TOTAL INVESTMENTS
(Cost $199,969,711) - 114.02%....................... 249,456,876
Other assets less liabilities,
net - (14.02%)..................................... (30,670,410)
-----------
NET ASSETS (equivalent
to $14.51 per share on
15,078,692 shares
outstanding) - 100%................................ $218,786,466
============
* 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,
15,078,692 shares outstanding..................... $ 150,787
Additional paid in capital.......................... 154,572,443
Accumulated net realized gain on securities......... 14,509,047
Undistributed net investment income................. 67,024
Unrealized appreciation of securities............... 49,487,165
------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING....................................... $218,786,466
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 69
================================================================================
ASSET ALLOCATION FUND - FINANCIAL STATEMENTS (Unaudited) 67
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends ................................................................... $ 905,705
Interest .................................................................... 2,632,687
------------
Total investment income ................................................... 3,538,392
------------
EXPENSES:
Advisory fees ............................................................... 513,771
Custodian and accounting services ........................................... 24,172
Reports to shareholders ..................................................... 17,269
Audit fees and tax services ................................................. 3,455
Directors' fees and expenses ................................................ 2,735
Miscellaneous ............................................................... 9,918
------------
Total expenses ............................................................ 571,320
------------
NET INVESTMENT INCOME ....................................................... 2,967,072
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain (loss) on:
Investments ................................................ $ 2,713,977
Futures contracts .......................................... (904,875) 1,809,102
------------
Net unrealized appreciation during the period:
Investments ................................................ 5,308,798
Futures contracts .......................................... 68,925 5,377,723
------------ ------------
Net realized and unrealized gain during the period ....................... 7,186,825
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................ $ 10,153,897
------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ............................................ $ 2,967,072 $ 5,684,679
Net realized gain on securities .................................. 1,809,102 13,272,397
Net unrealized appreciation of securities during the period ...... 5,377,723 18,286,139
------------- -------------
Increase in net assets resulting from operations ............... 10,153,897 37,243,215
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................................ (2,951,844) (5,673,369)
Net realized gain on securities .................................. -- (10,552,054)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders ............................................... (2,951,844) (16,225,423)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ................................. 12,127,662 6,643,565
Proceeds from capital stock issued for distributions reinvested... 2,951,844 16,225,423
------------- -------------
15,079,506 22,868,988
Cost of capital stock repurchased ................................ (3,593,905) (21,134,651)
------------- -------------
Increase in net assets resulting from capital
stock transactions ............................................ 11,485,601 1,734,337
------------- -------------
TOTAL INCREASE IN NET ASSETS ..................................... 18,687,654 22,752,129
NET ASSETS:
Beginning of period .............................................. 200,098,812 177,346,683
------------- -------------
End of period (including undistributed net investment income
of $67,024 and $51,796) ........................................ $ 218,786,466 $ 200,098,812
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ..................................... 858,130 488,059
Shares issued for distributions reinvested ....................... 208,946 1,231,303
Shares of capital stock repurchased .............................. (257,864) (1,556,774)
------------- -------------
Increase in shares outstanding ................................. 809,212 162,588
Shares outstanding:
Beginning of period ............................................ 14,269,480 14,106,892
------------- -------------
End of period .................................................. 15,078,692 14,269,480
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 70
================================================================================
CAPITAL CONSERVATION FUND - STATEMENT OF NET ASSETS
68 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
CORPORATE BONDS - 87.68%
AIRLINES - 2.75%
$ 1,500,000 Delta Air Lines, Inc.,
9.75% due 5/15/2021................................ $ 1,823,025
-----------
AUTO - CARS - 2.25%
1,500,000 Hertz Corp.,
6.00% due 01/15/2003............................... 1,489,740
-----------
BANKS - OTHER - 5.42%
1,000,000 BankAmerica Corp.,
7.20% due 04/15/2006............................... 1,077,790
1,500,000 Santander Finance Issuance,
7.25% due 11/01/2015............................... 1,512,570
1,000,000 Toronto Dominion Bank,
6.13% due 11/01/2008............................... 999,430
-----------
3,589,790
-----------
BANKS - REGIONAL - 6.63%
1,500,000 Bank Boston Capital Trust I,
8.25% due 12/15/2026............................... 1,620,675
1,500,000 Barnett Capital Trust I,
8.06% due 12/01/2026............................... 1,673,070
1,000,000 SouthTrust Corp.,
7.63% due 05/01/2004............................... 1,090,730
-----------
4,384,475
-----------
BUILDING MATERIALS - 3.02%
2,000,000 CSR America, Inc.,
6.88% due 07/21/2005............................... 1,995,360
-----------
DRUGS - 3.05%
2,000,000 Akzo Nobel Inc.
6.00% due 11/15/2003............................... 2,016,200
-----------
FINANCE COMPANIES - 8.76%
2,000,000 Capital One Bank,
8.13% due 03/01/2000............................... 2,034,960
1,000,000 C.I.T. Group Holdings, Inc.,
8.38% due 11/01/2001............................... 1,074,100
2,000,000 Finova Capital Corp.,
9.13% due 02/27/2002............................... 2,169,480
500,000 Ford Motor Credit Co.,
6.38% due 11/05/2008............................... 520,290
-----------
5,798,830
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
HEALTHCARE - 2.05%
$1,500,000 Columbia Healthcare Corp.,
7.50% due 12/15/2023............................... $ 1,355,460
-----------
HEAVY DUTY TRUCKS/PARTS - 2.26%
1,500,000 Dana Corp.,
7.00% due 03/15/2028............................... 1,494,300
-----------
INFORMATION PROCESSING -
DATA SERVICES - 2.99%
2,000,000 Comdisco, Inc.,
6.13% due 08/01/2001............................... 1,975,660
-----------
MERCHANDISE - DRUG - 0.75%
500,000 Imcera Group, Inc.,
6.00% due 10/15/2003............................... 496,390
-----------
MERCHANDISING - DEPARTMENT - 7.42%
2,000,000 Associated Dry Goods Corp.,
8.85% due 03/01/2006............................... 2,331,780
2,500,000 Federated Department Stores, Inc.,
6.79% due 07/15/2027............................... 2,577,275
-----------
4,909,055
-----------
MERCHANDISING - MASS - 2.27%
1,500,000 ShopKo Stores, Inc.,
6.50% due 08/15/2003............................... 1,504,935
-----------
METALS - STEEL - 2.69%
2,000,000 Pohang Iron & Steel Limited,
7.50% due 08/01/2002............................... 1,782,860
-----------
PAPER/FOREST PRODUCTS - 3.74%
2,000,000 Georgia-Pacific Corp.,
9.50% due 12/01/2011............................... 2,475,300
-----------
POLLUTION CONTROL - 2.24%
1,500,000 US Filter Corp.,
6.38% due 05/15/2001............................... 1,484,100
-----------
PUBLISHING - NEWS - 3.45%
2,000,000 News America Holdings,
8.25% due 08/10/2018............................... 2,280,860
-----------
RAILROAD - 3.06%
2,000,000 Union Pacific Corp.,
6.79% due 11/09/2007............................... 2,027,340
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
TELECOMMUNICATIONS - 6.41%
$2,000,000 Airtouch Communications, Inc.,
7.50% due 07/15/2006............................... $ 2,138,900
2,000,000 360 Communications Co.,
7.13% due 03/01/2003............................... 2,104,900
-----------
4,243,800
-----------
UTILITIES - COMMUNICATION - 6.35%
2,500,000 Century Telephone Enterprises, Inc.,
7.20% due 12/01/2025............................... 2,660,750
1,500,000 GTE South, Inc.,
6.00% due 02/15/2008............................... 1,539,195
-----------
4,199,945
-----------
UTILITIES - ELECTRIC - 2.08%
2,000,000 Tenaga Nasional Berhad,
7.88% due 06/15/2004............................... 1,377,820
-----------
UTILITIES - GAS, DISTRIBUTION - 1.67%
1,000,000 Tosco Corp.,
9.63% due 03/15/2002............................... 1,103,830
-----------
UTILITIES - GAS, PIPELINE - 6.37%
2,000,000 Columbia Energy Group,
7.62% due 11/28/2025............................... 2,087,700
2,000,000 Enron Corp.,
7.63% due 09/10/2004............................... 2,128,300
-----------
4,216,000
-----------
TOTAL CORPORATE BOND
(Cost $57,598,948).................................. 58,025,075
-----------
UNITED STATES GOVERNMENT
LONG TERM - 8.40%
FEDERAL AGENCIES - 0.37%
Government National Mortgage Association
(Pools/REMICS)
41,244 9.50% due 05/15/2018............................... 44,548
2,516 9.50% due 06/15/2018............................... 2,717
1,230 9.50% due 06/15/2018............................... 1,329
150,136 9.50% due 07/15/2018............................... 162,164
18,035 9.50% due 08/15/2018............................... 19,480
10,587 9.50% due 10/15/2018............................... 11,435
-----------
241,673
-----------
</TABLE>
<PAGE> 71
================================================================================
CAPITAL CONSERVATION FUND - STATEMENT OF NET ASSETS CONTINUED
November 30, 1998 (Unaudited) 69
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
GOVERNMENT SPONSORED - 7.18%
Federal Home Loan Mortgage Corp.,
$ 845,299 6.50% due 06/01/2012............................... $ 857,708
1,000,000 5.75% due 12/15/2016............................... 1,000,000
Federal National Mortgage Association,
(Pool/REMICS)
714,213 7.00% due 60/01/2011............................... 730,504
689,319 7.50% due 07/01/2026............................... 708,268
700,410 7.00% due 05/01/2011............................... 716,387
722,430 7.00% due 05/01/2011............................... 738,909
-----------
4,751,776
-----------
UNITED STATES NOTES - 0.85%
500,000 United States Treasury Notes,
6.88% due 05/15/2006............................... 564,685
-----------
TOTAL UNITED STATES GOVERNMENT -
LONG TERM (Cost $5,352,899)......................... 5,558,134
-----------
FOREIGN GOVERNMENT BONDS - 0.80%
CANADA - 0.80%
500,000 New Brunswick, Province
7.13% due 10/01/2002
(Cost $499,259).................................... 531,920
-----------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 0.80%
CONGLOMERATES - 0.80%
530,000 CSW Corp
5.65% due 12/01/1998
(Cost $530,000) 530,000
-----------
TOTAL INVESTMENTS
(Cost $63,981,106) - 97.68%......................... 64,645,129
Other assets less liabilities,
net - 2.32%........................................ 1,533,769
-----------
NET ASSETS (equivalent
to $9.64 per share on
6,868,287 shares
outstanding - 100%................................. $66,178,898
===========
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
- ----------- ------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED(1)
(Delivery month/Value at 11/30/98)
10 (2) U.S. Treasury 30 Year Notes
(March/$130.22).................................... $ 21,100
============
(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
</TABLE>
<TABLE>
<S> <C> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
6,868,287 shares outstanding................................... $ 68,683
Additional paid in capital....................................... 65,663,586
Accumulated net realized loss on securities...................... (285,441)
Undistributed net investment income.............................. 46,947
Unrealized appreciation of:
Investments........................................ $ 664,023
Futures ........................................... 21,100 685,123
---------- -----------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING..................................................... $66,178,898
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 72
================================================================================
70 CAPITAL CONSERVATION FUND - FINANCIAL STATEMENTS (Unaudited)
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest ............................................................................. $ 2,241,122
-----------
EXPENSES:
Advisory fees ........................................................................ 163,510
Custodian and accounting services .................................................... 7,746
Reports to shareholders .............................................................. 5,522
Audit fees and tax services .......................................................... 975
Directors' fees and expenses ......................................................... 877
Miscellaneous ........................................................................ 2,133
-----------
Total expenses ..................................................................... 180,763
-----------
NET INVESTMENT INCOME ................................................................ 2,060,359
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on:
Investments ......................................................... $ 151,807
Futures contracts ................................................... 79,936 231,743
-----------
Net unrealized appreciation (depreciation) during the period:
Investments ......................................................... (580,459)
Futures contracts ................................................... 21,202 (559,257)
----------- -----------
Net realized and unrealized loss on securities during the period ... (327,514)
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................... $ 1,732,845
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ............................................ $ 2,060,359 $ 4,230,852
Net realized gain on securities .................................. 231,743 259,260
Net unrealized appreciation (depreciation) of securities
during the period .............................................. (559,257) 2,346,983
------------ ------------
Increase in net assets resulting from operations .............. 1,732,845 6,837,095
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................................ (2,048,014) (4,220,237)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ................................. 7,245,051 11,469,948
Proceeds from capital stock issued for distributions reinvested .. 2,048,014 4,220,237
------------ ------------
9,293,065 15,690,185
Cost of capital stock repurchased ................................ (6,452,550) (21,400,947)
------------ ------------
Increase (decrease) in net assets resulting from capital
stock transactions ............................................ 2,840,515 (5,710,762)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .......................... 2,525,346 (3,093,904)
NET ASSETS:
Beginning of period .............................................. 63,653,552 66,747,456
------------ ------------
End of period (including undistributed net investment income
of $46,947 and $34,604) ........................................ $ 66,178,898 $ 63,653,552
============ ============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ..................................... 749,791 1,185,836
Shares issued for distributions reinvested ....................... 212,701 439,548
Shares of capital stock repurchased .............................. (671,216) (2,216,430)
------------ ------------
Increase (decrease) in shares outstanding ...................... 291,276 (591,046)
Shares outstanding:
Beginning of period ............................................ 6,577,011 7,168,057
------------ ------------
End of period .................................................. 6,868,287 6,577,011
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 73
================================================================================
GOVERNMENT SECURITIES FUND - STATEMENT OF NET ASSETS
November 30, 1998 (Unaudited) 71
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
UNITED STATES GOVERNMENT -
LONG TERM - 97.90%
FEDERAL AGENCIES - 10.37%
Tennessee Valley Authority:
$2,000,000 6.75% due 11/01/2025............................... $ 2,134,060
2,500,000 6.38% due 06/15/2005............................... 2,799,675
3,000,000 6.00% due 03/15/2013............................... 3,125,610
3,500,000 5.38% due 11/13/2008............................... 3,501,085
-----------
11,560,430
-----------
GOVERNMENT SPONSORED - 55.45%
1,500,000 Federal Farm Credit Banks,
6.92% due 05/13/2002................................ 1,589,295
Federal Home Loan Banks:
1,155,000 7.26% due 09/06/2001................................ 1,220,685
1,150,000 7.10% due 11/02/2002................................ 1,236,434
2,000,000 6.38% due 12/20/2000................................ 2,052,180
5,000,000 6.12% due 08/26/2008................................ 5,081,250
3,000,000 6.11% due 06/19/2003................................ 3,007,500
3,000,000 5.91% due 03/27/2008................................ 3,099,840
1,145,000 5.81% due 01/21/2005................................ 1,177,381
3,000,000 5.70% due 12/19/2000................................ 3,037,980
Federal Home Loan Mortgage Corp.:
1,500,000 7.09% due 06/01/2005................................ 1,521,795
3,500,000 6.71% due 11/09/2005................................ 3,530,625
1,500,000 6.37% due 01/23/2006................................ 1,520,625
Federal Home Loan Mortgage Corp.
(Pools/REMICS):
88,093 7.50% due 09/01/2025................................ 90,488
339,726 7.50% due 09/01/2025................................ 348,960
175,092 7.50% due 09/01/2025................................ 179,851
2,000,000 7.00% due 06/01/2019................................ 2,064,360
2,113,248 6.50% due 06/01/2012................................ 2,144,270
175,000 5.50% due 02/25/2019................................ 174,069
Federal National Mortgage Association:
1,000,000 9.05% due 04/10/2000................................ 1,051,410
2,000,000 7.27% due 08/24/2005................................ 2,042,180
3,000,000 7.00% due 08/27/2012................................ 3,202,980
2,000,000 6.85% due 09/12/2005................................ 2,022,180
2,000,000 6.62% due 06/25/2007................................ 2,160,620
2,000,000 6.41% due 03/08/2006................................ 2,131,880
4,000,000 6.25% due 12/13/2002................................ 4,026,880
1,475,000 6.15% due 07/02/2008................................ 1,500,576
3,000,000 6.06% due 05/07/2003................................ 3,037,980
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
GOVERNMENT SPONSORED - Continued
$2,000,000 5.74% due 12/23/1999............................... $ 2,013,120
2,500,000 5.50% due 09/29/2003............................... 2,498,000
2,000,000 4.63% due 10/15/2001............................... 1,986,880
1,000,000 Student Loan Marketing Association,
7.50% due 03/08/2000............................... 1,029,370
-----------
61,781,644
-----------
UNITED STATES BONDS, NOTES
& STRIPS - 32.08%
United States Treasury Bonds:
1,800,000 9.00% due 11/15/2018............................... 2,607,462
4,000,000 8.75% due 08/15/2020............................... 5,736,240
3,500,000 8.50% due 02/15/2020............................... 4,890,690
3,500,000 7.25% due 08/15/2022............................... 4,391,940
2,000,000 6.75% due 08/15/2026............................... 2,410,320
United States Treasury Notes:
2,500,000 6.75% due 04/30/2000............................... 2,571,100
1,000,000 6.38% due 01/15/2000............................... 1,017,970
6,000,000 5.88% due 11/15/1999............................... 6,065,640
3,000,000 5.75% due 08/15/2003............................... 3,136,410
2,000,000 5.50% due 01/31/2003............................... 2,061,880
United States Treasury Strips,
1,500,000 due 11/15/2009..................................... 852,465
-----------
35,742,117
-----------
TOTAL UNITED STATES
GOVERNMENT - LONG TERM
(Cost $103,905,695)................................. 109,084,191
-----------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 0.44%
CONGLOMERATES - 0.44%
495,000 CSW Corp.,
5.65 % due 12/01/1998............................... 495,000
-----------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $495,000)..................................... 495,000
-----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
------------
<S> <C>
TOTAL INVESTMENTS
(Cost $104,400,695) - 98.34%......................... $109,579,191
Other assets less liabilities,
net - 1.66%......................................... 1,848,639
------------
NET ASSETS (equivalent
to $10.36 per share on
10,757,636 shares
outstanding) - 100% ................................ $111,427,830
============
</TABLE>
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
10,757,636 shares outstanding ................................ $ 107,576
Additional paid in capital ..................................... 107,527,062
Accumulated net realized loss on securities .................... (1,451,447)
Undistributed net investment income ............................ 66,143
Unrealized appreciation of investments ......................... 5,178,496
-------------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING ........................................... $ 111,427,830
=============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 74
================================================================================
72 GOVERNMENT SECURITIES FUND - FINANCIAL STATEMENTS (Unaudited)
================================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest ........................................................................... $3,076,031
----------
EXPENSES:
Advisory fees ...................................................................... 255,786
Custodian and accounting services .................................................. 11,756
Reports to shareholders ............................................................ 8,575
Audit fees and tax services ........................................................ 1,625
Directors' fees and expenses ....................................................... 1,325
Miscellaneous ...................................................................... 2,786
----------
Total expenses ................................................................... 281,853
----------
NET INVESTMENT INCOME .............................................................. 2,794,178
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on:
Investments ........................................................ $ 52,463
Futures contracts .................................................. 230,297 282,760
----------
Net unrealized appreciation during the period:
Investments ........................................................ 2,162,474
Futures contracts .................................................. 133 2,162,607
---------- ----------
Net realized and unrealized gain on securities during the period ................... 2,445,367
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..................................... $5,239,545
==========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ............................................. $ 2,794,178 $ 5,097,779
Net realized gain on securities ................................... 282,760 358,401
Net unrealized appreciation of securities during the period ....... 2,162,607 3,271,061
------------- -------------
Increase in net assets resulting from operations ............... 5,239,545 8,727,241
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................................. (2,775,508) (5,081,964)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold .................................. 32,249,130 17,280,167
Proceeds from capital stock issued for distributions reinvested ... 2,775,508 5,081,964
------------- -------------
35,024,638 22,362,131
Cost of capital stock repurchased ................................. (18,181,062) (17,713,793)
------------- -------------
Increase in net assets resulting from capital
stock transactions ............................................. 16,843,576 4,648,338
------------- -------------
TOTAL INCREASE IN NET ASSETS ...................................... 19,307,613 8,293,615
NET ASSETS:
Beginning of period ............................................... 92,120,217 83,826,602
------------- -------------
End of period (including undistributed net investment income
of $66,143 and $47,473) ......................................... $ 111,427,830 $ 92,120,217
============= ==============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ...................................... 3,124,242 1,716,427
Shares issued for distributions reinvested ........................ 269,549 509,952
Shares of capital stock repurchased ............................... (1,765,652) (1,769,096)
------------- -------------
Increase in shares outstanding .................................. 1,628,139 457,283
Shares outstanding:
Beginning of period ............................................. 9,129,497 8,672,214
------------- -------------
End of period ................................................... 10,757,636 9,129,497
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 75
================================================================================
INTERNATIONAL GOVERNMENT BOND FUND - INVESTMENT PORTFOLIO
November 30, 1998 (Unaudited) 73
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
GOVERNMENT BONDS - 83.84%
AUSTRALIA - 1.09%
Commonwealth:
A$ 500,000 9.75% due 3/15/02................................ $ 362,756
A$ 500,000 9.00% due 9/15/04................................ 379,712
A$ 500,000 8.75% due 1/15/01................................ 340,556
A$ 500,000 7.50% due 7/15/05................................ 359,982
A$ 500,000 7.50% due 9/15/09................................ 376,067
----------
1,819,073
----------
AUSTRIA - 2.75%
Republic of Austria:
DM 1,000,000 7.25% due 5/3/07.................................. 712,370
As 2,000,000 7.125% due 7/12/04................................ 193,975
As 1,500,000 7.00% due 2/14/00................................ 130,776
As 2,200,000 7.00% due 1/20/03................................ 207,105
As 2,000,000 7.00% due 5/16/05................................ 195,400
As 2,000,000 6.875% due 4/19/02................................ 184,507
As 2,000,000 6.50% due 11/17/05................................ 191,881
As 6,000,000 6.25% due 5/31/06................................ 571,344
As 3,000,000 5.625% due 7/15/07................................ 276,509
As 2,000,000 5.50% due 1/18/04................................ 180,566
Ff11,000,000 5.50% due 1/18/04................................ 2,082,908
Y. 100MM 4.75% due 12/20/04............................... 1,001,421
Y. 50MM 4.50% due 9/28/05................................ 503,754
As 3,000,000 4.375% due 2/28/02............................... 257,656
----------
6,690,172
----------
BELGIUM - 3.58%
Kingdom of Belgium:
Bf 10,000,000 8.75% due 6/25/02................................. 334,686
Bf 10,000,000 8.00% due 12/24/12................................ 390,529
Bf 10,000,000 8.00% due 3/28/15................................. 396,531
Bf 10,000,000 7.75% due 12/22/00................................ 310,223
Bf 25,000,000 7.75% due 10/15/04................................ 860,078
Bf 20,000,000 7.50% due 7/29/08................................. 716,984
Bf 15,000,000 7.00% due 5/15/06................................. 509,574
Bf 20,000,000 6.50% due 3/31/05................................. 653,940
Bf 20,000,000 6.25% due 3/28/07................................. 655,140
Bf 20,000,000 5.00% due 3/28/01................................. 591,695
Bf 20,000,000 4.00% due 1/22/00................................. 575,588
----------
5,994,968
----------
CANADA - 4.27%
Government of Canada:
C$ 550,000 9.50% due 6/1/10.................................. 497,442
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ----------- -----------
<S> <C> <C>
CANADA - CONTINUED
C $ 500,000 9.00% due 12/1/04................................. $ 395,877
C $ 500,000 9.00% due 6/1/25.................................. 494,378
C $1,000,000 8.75% due 12/1/05................................. 800,236
C $1,000,000 8.50% due 4/1/02.................................. 727,216
C $1,000,000 8.00% due 6/1/23.................................. 891,440
C $ 500,000 7.50% due 9/1/00.................................. 341,709
C $1,000,000 7.50% due 3/1/01.................................. 691,145
C $1,000,000 7.25% due 6/1/03.................................. 716,510
C $1,000,000 7.00% due 12/1/06................................. 741,200
C $ 500,000 6.50% due 6/1/04.................................. 352,260
C $ 750,000 5.50% due 2/1/00.................................. 494,971
----------
7,144,384
----------
DENMARK - 2.35
Kingdom of Denmark:
DK 5,000,000 8.00% due 11/15/01................................ 860,289
DK 2,500,000 8.00% due 5/15/03................................. 449,411
DK 3,000,000 8.00% due 3/15/06................................. 571,763
DK 5,500,000 7.00% due 12/15/04................................ 982,222
DK 1,250,000 7.00% due 11/10/24................................ 243,991
DK 5,000,000 6.00% due 11/15/02................................ 830,361
----------
3,938,037
----------
FINLAND - 2.44%
Republic of Finland:
FIM 2,000,000 10.00% due 9/15/01................................ 453,458
FIM 3,000,000 9.50% due 3/15/04................................. 737,238
FIM 3,000,000 7.25% due 4/18/06................................. 697,127
Ff 5,000,000 7.00% due 6/15/04................................. 1,013,433
Y. 100MM 6.00% due 1/29/02................................. 952,719
FIM 1,000,000 6.00% due 4/25/08................................. 219,870
----------
4,073,845
----------
FRANCE - 4.60%
Government of France:
Ff 4,600,000 9.50% due 1/25/01................................. 910,588
Ff 3,500,000 8.50% due 11/25/02................................ 726,860
Ff 1,500,000 8.50% due 12/26/12................................ 377,162
Ff 7,000,000 6.75% due 10/25/03................................ 1,399,828
Ff 2,000,000 6.50% due 10/25/06................................ 412,888
Ff 8,500,000 6.00% due 10/25/25................................ 1,733,108
Ff 2,000,000 5.50% due 4/25/04................................. 384,413
Ff 4,000,000 5.50% due 4/25/07................................. 779,371
Ff 3,000,000 5.50% due 4/25/29................................. 579,703
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
FRANCE - Continued
Ff 2,000,000 5.25% due 4/25/08................................. $ 383,534
----------
7,687,455
----------
GERMANY - 10.64%
Federal Republic of Germany:
DM 2,000,000 7.50% due 9/9/04.................................. 1,404,344
DM 3,100,000 7.125% due 12/20/02............................... 2,074,585
DM 3,000,000 6.50% due 3/15/00................................. 1,837,897
DM 3,000,000 6.50% due 7/15/03................................. 1,985,735
DM 3,000,000 6.50% due 10/14/05................................ 2,043,385
DM 1,000,000 6.25% due 4/26/06................................. 676,413
DM 2,000,000 6.25% due 1/4/24.................................. 1,415,898
DM 1,000,000 6.00% due 1/5/06.................................. 663,916
DM 3,000,000 6.00% due 1/4/07.................................. 2,007,309
DM 2,000,000 6.00% due 6/20/16................................. 1,403,755
DM 3,750,000 4.50% due 8/19/02................................. 2,287,202
----------
17,800,439
----------
IRELAND - 0.66%
Republic of Ireland:
Ilb 100,000 8.25% due 8/18/15................................. 206,537
Ilb 100,000 8.00% due 8/18/06................................. 183,539
Ilb 150,000 6.50% due 10/18/01................................ 237,517
Ilb 150,000 6.25% due 4/1/99.................................. 221,544
Ilb 150,000 6.25% due 10/18/04................................ 247,075
----------
1,096,212
----------
ITALY - 9.77%
Republic of Italy:
Lit 1,000MM 12.00% due 6/1/01................................. 711,951
Lit 1,000MM 12.00% due 1/1/02................................. 737,610
Lit 1,000MM 10.50% due 7/15/00................................ 659,265
Lit 500MM 10.50% due 4/1/05................................. 404,495
Lit 500MM 10.50% due 9/1/05................................. 409,912
Lit 3,400MM 10.00% due 8/1/03................................. 2,554,023
Lit 500MM 9.50% due 1/1/05.................................. 384,878
Lit 500MM 9.50% due 2/1/06.................................. 396,487
Lit 2,000MM 9.00% due 11/1/23................................. 1,845,513
Lit 1,000MM 8.50% due 4/1/04.................................. 726,775
Lit 1,500MM 8.50% due 8/1/04.................................. 1,096,324
Lit 1,000MM 7.75% due 9/15/01................................. 660,872
Lit 1,500MM 6.75% due 2/1/07.................................. 1,047,031
Lit 500MM 6.25% due 3/1/02.................................. 321,566
Lit 2,000MM 5.75% due 9/15/02................................. 1,279,000
Lit 3,000MM 5.50% due 9/15/00................................. 1,848,757
</TABLE>
<PAGE> 76
================================================================================
INTERNATIONAL GOVERNMENT BOND FUND - INVESTMENT PORTFOLIO CONTINUED
74 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------------ -----------
<S> <C> <C>
ITALY - CONTINUED
Lit 2,000MM 5.00% due 5/1/08............................ $ 1,266,617
------------
16,351,076
------------
JAPAN - 19.49%
Government of Japan:
Y. 250MM 6.60% due 6/20/01............................ 2,345,576
Y. 105MM 6.00% due 12/20/01........................... 993,665
Y. 365MM 5.50% due 3/20/02............................ 3,442,317
Y. 120MM 5.00% due 12/20/02........................... 1,143,994
Y. 100MM 5.00% due 9/21/09............................ 1,116,940
Y. 100MM 5.00% due 3/20/15............................ 1,192,322
Y. 127MM 4.50% due 6/20/03............................ 1,205,985
Y. 75MM 4.50% due 12/20/04........................... 738,738
Y. 150MM 4.40% due 9/22/03............................ 1,428,166
Y. 200MM 4.20% due 9/21/15............................ 2,206,039
Y. 150MM 4.10% due 6/21/04............................ 1,434,375
Y. 100MM 3.90% due 6/21/04............................ 947,321
Y. 100MM 3.80% due 9/20/16............................ 1,059,773
Y. 250MM 3.50% due 3/21/16............................ 2,553,348
Y. 100MM 3.30% due 6/20/06............................ 946,266
Y. 200MM 3.20% due 3/20/06............................ 1,874,351
Y. 250MM 3.00% due 9/20/05............................ 2,301,339
Y. 150MM 2.90% due 12/20/05........................... 1,376,055
Y. 100MM 2.70% due 3/20/07............................ 917,175
Y. 150MM 2.00% due 12/20/07........................... 1,312,232
Y. 250MM 1.10% due 10/22/01........................... 2,064,083
------------
32,600,060
------------
NETHERLANDS - 4.09%
Government of the Netherlands:
NG 1,000,000 8.75% due 9/15/01............................ 595,017
NG 500,000 8.25% due 2/15/02............................ 298,293
NG 500,000 8.25% due 6/15/02............................ 301,430
NG 500,000 8.25% due 2/15/07............................ 336,462
NG 1,500,000 7.75% due 3/1/05............................. 951,740
NG 500,000 7.50% due 4/15/10............................ 338,422
NG 750,000 7.50% due 1/15/23............................ 540,770
NG 2,000,000 6.50% due 4/15/03............................ 1,165,460
NG 1,500,000 6.00% due 1/15/06............................ 883,898
NG 2,000,000 5.75% due 1/15/04............................ 1,145,591
NG 500,000 5.75% due 2/15/07............................ 292,934
------------
6,850,017
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------------ -----------
<S> <C> <C>
PORTUGAL - 0.92%
Republic Of Portugal:
Ff 3,000,000 6.625% due 5/13/08........................... $ 619,396
PTE75,000,000 5.375% due 6/23/08........................... 466,741
PTE75,000,000 4.812% due 4/23/03........................... 448,508
-----------
1,534,645
-----------
SPAIN - 4.62%
Government of Spain:
Pst 50MM 10.50% due 10/30/03........................... 449,827
Pst 100MM 10.30% due 6/15/02............................ 845,307
Pst 50MM 10.00% due 2/28/05............................ 460,218
Pst 70MM 8.20% due 2/28/09............................. 635,456
Pst 80MM 8.00% due 5/30/04............................. 668,292
Ff 2,000,000 6.50% due 6/20/01............................. 376,810
Pst 236MM 6.00% due 1/31/08............................. 1,845,670
Pst 100MM 6.00% due 1/31/29............................. 782,979
Pst 67MM 5.25% due 1/31/03............................. 496,588
Pst 163MM 5.00% due 1/31/01............................. 1,165,247
-----------
7,726,394
-----------
SWEDEN - 2.23%
Kingdom of Sweden:
SK 3,000,000 10.25% due 5/5/00............................ 401,340
SK 6,000,000 10.25% due 5/5/03............................ 923,593
SK 3,000,000 9.00% due 4/20/09............................ 508,688
SK 3,000,000 8.00% due 8/15/07............................ 466,559
C $ 500,000 6.75% due 12/31/01........................... 341,738
SK 2,000,000 6.50% due 10/25/06........................... 281,671
SK 6,000,000 6.00% due 2/9/05............................. 809,587
-----------
3,733,176
-----------
SWITZERLAND - 0.70%
Government of Switzerland:
Chf 500,000 4.50% due 7/8/02............................. 391,463
Chf 500,000 4.50% due 4/8/06............................. 413,056
Chf 500,000 4.00% due 4/8/28............................. 370,973
-----------
1,175,492
-----------
UNITED KINGDOM - 6.95%
Government of United Kingdom:
L 250,000 9.75% due 8/27/02............................ 477,722
L 400,000 9.00% due 10/13/08........................... 881,202
L 250,000 9.00% due 7/12/11............................ 577,720
L 750,000 8.75% due 8/25/17............................ 1,864,290
L 500,000 8.50% due 12/7/05............................ 1,004,514
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------------ -----------
<S> <C> <C>
UNITED KINGDOM - CONTINUED
L 500,000 8.00% due 9/25/09........................... $ 1,030,906
L 500,000 8.00% due 12/7/15........................... 1,149,006
L 750,000 8.00% due 6/7/21............................ 1,829,033
L 1,000,000 7.50% due 12/7/06........................... 1,947,999
L 500,000 7.00% due 11/6/01........................... 868,023
-----------
11,630,415
-----------
UNITED STATES - 1.45%
DM 4,000,000 Federal National Mortgage Association,
5.00% due 2/16/01............................ 2,433,022
-----------
TOTAL GOVERNMENT BONDS
(Cost $133,207,822)........................... 140,278,882
-----------
SUPRANATIONAL - 5.95%
Ff 1,600,000 Eurofima:
9.25% due 12/18/03........................... 349,785
European Investment Bank:
Lit 1,100MM 10.50% due 2/7/02........................... 787,047
L 250,000 9.00% due 5/14/02........................... 455,660
Ff 2,000,000 6.125% due 10/8/04.......................... 391,971
L 1,000,000 6.00% due 11/26/04.......................... 1,705,118
Y. 100MM 4.625% due 2/26/03.......................... 949,675
L 100,000,000 3.00% due 9/20/06........................... 932,427
International Bank for
Reconstruction & Development:
Lit 150MM 10.80% due 11/13/01.......................... 106,902
Lit 200MM 9.45% due 8/11/03............................ 147,046
L 400,000 9.25% due 7/20/07............................ 833,384
Y. 250MM 5.25% due 3/20/02............................ 2,350,092
Y. 100MM 4.50% due 3/20/03............................ 948,154
-----------
TOTAL SUPRANATIONAL
(Cost $10,124,302)............................ 9,957,261
-----------
CORPORATE BONDS - 4.18%
FRANCE - 3.94%
Credit Local de France:
Lit 1,000MM 9.00% due 6/14/01............................ 670,487
Ff 5,000,000 8.875% due 6/10/02........................... 1,025,621
Ff 8,000,000 6.25% due 9/27/05............................ 1,588,976
Ff 4,000,000 6.00% due 11/15/01........................... 747,029
Ff 10,000,000 Elf Aquitaine SA,
7.125% due 8/11/03........................... 1,990,614
</TABLE>
<PAGE> 77
================================================================================
INTERNATIONAL GOVERNMENT BOND FUND - INVESTMENT PORTFOLIO CONTINUED
November 30, 1998 (Unaudited) 75
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------------ ------------
<S> <C> <C>
FRANCE - CONTINUED
FF3,000,000 Toyota Motor Credit,
6.25% due 4/11/02........................... $ 565,216
------------
6,587,943
------------
UNITED KINGDOM - 0.25%
L 250,000 Sudwestdeutsche Lbank Cap,
0.00% due................................... 412,156
------------
TOTAL CORPORATE BONDS
(Cost $7,391,954)............................ 7,000,099
------------
TOTAL INVESTMENTS
(Cost $150,724,078) - 93.98%................. 157,236,242
Other assets less liabilities,
net - 6.02%.................................. 10,075,800
------------
NET ASSETS (equivalent
to $12.50 per share on
13,382,708 shares
outstanding) - 100%.......................... $167,312,042
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 78
================================================================================
76 INTERNATIONAL GOVERNMENT BOND FUND - FINANCIAL STATEMENTS (Unaudited)
================================================================================
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1998
<TABLE>
<S> <C>
ASSETS:
Investments (cost $150,724,078) ......................................... $157,236,242
Cash .................................................................... 955,982
Foreign currencies ...................................................... 1,907,707
Receivables:
Investment securities sold ............................................ 457,120
Investment income ..................................................... 3,780,122
Capital stock sold .................................................... 3,159,291
Foreign withholding taxes ............................................. 20,415
Prepaid expenses ........................................................ 1,483
------------
Total assets .......................................................... 167,518,362
------------
LIABILITIES:
Advisory fees ........................................................... 139,491
Foreign tax withholding ................................................. 37,278
Shareholder reports ..................................................... 14,503
Custodian fees .......................................................... 5,526
Other liabilities ....................................................... 9,522
------------
Total liabilities ..................................................... 206,320
------------
NET ASSETS APPLICABLE TO CAPITAL
SHARES OUTSTANDING .................................................... $167,312,042
------------
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
13,382,708 at 11/30/98 and 13,645,599 at 5/31/98 shares outstanding ... $ 133,827
Additional paid in capital .............................................. 158,190,288
Accumulated net realized gain on securities ............................. 783,420
Undistributed net investment income ..................................... 1,628,030
Unrealized appreciation of:
Investments ........................................................... 6,512,164
Foreign currency transactions ......................................... 64,313
------------
TOTAL NET ASSETS APPLICABLE TO CAPITAL
SHARES OUTSTANDING .................................................... $167,312,042
============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding taxes of $45,345) ....................... $ 3,924,225
------------
EXPENSES:
Advisory fees ................................................................ 396,707
Custodian and accounting services ............................................ 18,240
Reports to shareholders ...................................................... 13,014
Audit fees and tax services .................................................. 2,215
Directors' fees and expenses ................................................. 2,243
Miscellaneous ................................................................ 5,908
------------
Total expenses ............................................................. 438,327
------------
NET INVESTMENT INCOME ........................................................ 3,485,898
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
AND FOREIGN CURRENCIES:
Net realized gain (loss) on:
Investments .................................................. $ (263,729)
Foreign currency translation ................................. 61,786
Futures contracts ............................................ 326,660 124,717
------------
Net unrealized appreciation (depreciation) during the year:
Securities ................................................... 13,071,652
Foreign currency transactions ................................ 83,756
Futures contracts ............................................ (214,063) 12,941,345
------------ ------------
Net realized and unrealized gain on securities and
foreign currencies during the period ..................................... 13,066,062
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .............................. $ 16,551,960
============
</TABLE>
<PAGE> 79
================================================================================
INTERNATIONAL GOVERNMENT BOND FUND - FINANCIAL STATEMENTS CONTINUED 77
================================================================================
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ............................................. $ 3,485,898 $ 7,923,140
Net realized gain (loss) on securities and
foreign currency transactions ................................... 124,717 (3,852,314)
Net unrealized appreciation of securities and
translation of foreign currencies during the period ............. 12,941,345 241,624
------------- -------------
Increase in net assets resulting from operations ............... 16,551,960 4,312,450
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................................. (2,319,997) (3,034,869)
Net realized gain on securities ................................... -- (136,607)
------------- -------------
Decrease in net assets resulting from distributions
to shareholders ................................................ (2,319,997) (3,171,476)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold .................................. 35,386,864 30,361,915
Proceeds from capital stock issued for distributions reinvested ... 2,319,997 3,171,476
------------- -------------
37,706,861 33,533,391
Cost of capital stock repurchased ................................. (40,409,665) (56,600,279)
------------- -------------
Decrease in net assets resulting from
capital stock transactions ..................................... (2,702,804) (23,066,888)
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ........................... 11,529,159 (21,925,914)
NET ASSETS:
Beginning of period ............................................... 155,782,883 177,708,797
------------- -------------
End of period (including undistributed net investment income
of $1,628,030 and $462,129) ..................................... $ 167,312,042 $ 155,782,883
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ...................................... 2,919,958 2,685,573
Shares issued for distributions reinvested ........................ 188,737 279,556
Shares of capital stock repurchased ............................... (3,371,586) (4,999,093)
------------- -------------
Decrease in shares outstanding .................................. (262,891) (2,033,964)
Shares outstanding:
Beginning of period ............................................. 13,645,599 15,679,563
------------- -------------
End of period ................................................... 13,382,708 13,645,599
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 80
================================================================================
MONEY MARKET FUND - STATEMENT OF NET ASSETS
78 November 30, 1998 (Unaudited)
================================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------ ------------
<S> <C> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 85.96%
AEROSPACE/DEFENSE - 0.95%
$2,200,000 Lockheed Martin Corp.,
5.60% due 02/16/1999........................... $ 2,173,649
------------
BEVERAGE - SOFT DRINKS - 0.69%
1,577,000 Coca Cola Co.,
5.07% due 12/15/1998........................... 1,573,891
------------
CHEMICAL - MAJOR - 3.30%
E.I. du Pont de Nemours and Co.:
2,700,000 5.19% due 12/08/1998........................... 2,697,275
1,300,000 5.10% due 01/13/1999........................... 1,292,081
1,050,000 4.98% due 01/26/1999........................... 1,036,928
2,584,000 4.94% due 03/04/1999........................... 2,550,014
------------
7,576,298
------------
CONSUMER FINANCE - 15.81%
Associates Corp. of North America:
1,500,000 7.82% due 10/21/1999........................... 1,537,630
1,000,000 6.38% due 08/15/1999........................... 1,008,336
1,800,000 5.20% due 12/23/1998........................... 1,794,280
1,500,000 5.14% due 02/19/1999........................... 1,482,867
3,858,000 5.09% due 02/26/1999........................... 3,810,543
Commercial Credit Co.:
2,300,000 5.25% due 02/10/1999........................... 2,276,185
1,072,000 5.17% due 02/02/1999........................... 1,062,301
4,000,000 5.09% due 12/14/1998........................... 3,992,648
2,848,000 5.08% due 12/09/1998........................... 2,844,785
Countrywide Home Loans:
2,200,000 5.20% due 01/27/1999........................... 2,181,887
3,000,000 5.20% due 01/29/1999........................... 2,974,433
1,300,000 5.20% due 02/05/1999........................... 1,287,607
Sears Roebuck Acceptance Corp.:
1,000,000 6.54% due 05/06/1999........................... 1,004,497
3,000,000 5.20% due 01/22/1999........................... 2,977,467
650,000 5.15% due 03/02/1999........................... 641,538
940,000 5.06% due 01/26/1999........................... 932,601
1,300,000 5.07% due 03/22/1999........................... 1,279,678
1,400,000 5.00% due 02/24/1999........................... 1,383,472
1,800,000 5.00% due 03/08/1999........................... 1,775,750
------------
36,248,505
------------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------ ------------
<S> <C> <C>
DRUGS - 0.97%
$2,228,000 Schering Corp.,
5.00% due 12/02/1998........................... $ 2,227,691
------------
ELECTRICAL EQUIPMENT - 0.65%
1,500,000 General Electric Co.,
5.15% due 12/01/1998........................... 1,500,000
------------
ENTERTAINMENT - 6.02%
Mattel Inc.:
3,500,000 5.37% due 12/10/1998........................... 3,495,301
3,000,000 5.28% due 12/21/1998........................... 2,991,200
Walt Disney:
1,600,000 5.13% due 01/12/1999........................... 1,590,424
4,000,000 5.08% due 01/05/1999........................... 3,980,244
1,770,000 5.00% due 02/17/1999........................... 1,750,825
------------
13,807,994
------------
FINANCE COMPANIES - 21.13%
1,957,000 Bell Atlantic Financial Services Inc.,
5.35 % due 0.00 12/01/1998.... 1,957,000
2,000,000 Caterpillar Financial Service Corp,
6.80% due 06/15/1999........................... 2,011,155
Ciesco L P:
1,200,000 5.20% due 12/01/1998........................... 1,200,000
2,000,000 5.20% due 12/04/1998........................... 1,999,133
2,000,000 5.15% due 01/06/1999.......................... 1,989,700
2,500,000 5.13% due 01/20/1999.......................... 2,482,205
CIT Group Holdings Inc.:
2,000,000 6.13% due 01/14/1999........................... 2,001,115
1,000,000 5.33% due 12/14/1998........................... 998,075
1,200,000 5.10% due 12/28/1998........................... 1,195,410
1,500,000 5.07% due 12/24/1998........................... 1,495,141
1,825,000 5.03% due 12/16/1998........................... 1,821,175
2,400,000 5.00% due 02/01/1999.......................... 2,379,333
2,500,000 Ford Motor Credit Co.,
5.03% due 01/28/1999.......................... 2,479,740
Ford Motor Credit Europe:
1,700,000 5.05% due 01/19/1999........................... 1,688,315
2,000,000 5.03% due 02/03/1999........................... 1,982,116
1,592,000 5.02% due 01/21/1999........................... 1,580,678
2,068,000 5.02% due 02/04/1999........................... 2,049,256
General Electric Capital Corp.:
2,000,000 5.13% due 02/22/1999.......................... 1,976,345
1,900,000 5.04% due 03/29/1999.......................... 1,868,612
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------ ------------
<S> <C> <C>
FINANCE COMPANIES - Continued
General Electric Capital Services:
$1,600,000 5.33% due 12/21/1998........................... $ 1,595,262
2,300,000 5.06% due 02/08/1999........................... 2,277,694
900,000 5.03% due 02/10/1999.......................... 891,072
General Motors Acceptance Corp.:
2,250,000 8.40% due 10/15/1999........................... 2,314,312
1,560,000 7.38% due 05/26/1999........................... 1,571,826
750,000 6.50% due 04/16/1999........................... 751,673
1,000,000 6.45% due 05/24/1999........................... 1,004,895
900,000 5.18% due 01/05/1999........................... 895,467
1,500,000 5.18% due 01/27/1999........................... 1,487,698
500,000 International Lease Finance Corp.,
6.63% due 04/01/1999........................... 502,338
------------
48,446,741
------------
FOODS - 4.31%
Archer Daniels Midland Co.:
3,000,000 5.43% due 12/03/1998........................... 2,999,095
2,500,000 5.43% due 12/03/1998........................... 2,499,246
2,000,000 4.93% due 02/25/1999........................... 1,976,446
2,409,000 Kellogg Co.,
5.16% due 12/22/1998........................... 2,401,749
------------
9,876,536
------------
HOSPITAL SUPPLIES - 1.70%
Abbott Labs:
3,000,000 4.88% due 12/30/1998........................... 2,988,207
922,000 4.76% due 12/28/1998........................... 918,708
------------
3,906,915
------------
HOUSEHOLD PRODUCTS - 0.87%
2,000,000 Colgate-Palmolive Co.,
5.15% due 12/11/1998........................... 1,997,139
------------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 2.17%
IBM Corp.:
2,000,000 5.20% due 12/09/1998........................... 1,997,688
3,000,000 5.05% due 01/07/1999........................... 2,984,429
------------
4,982,117
------------
INFORMATION PROCESSING -
DATA SERVICES- 0.87%
2,000,000 International Business Machine Corp.,
5.12% due 12/29/1998........................... 1,992,036
------------
</TABLE>
<PAGE> 81
===============================================================================
MONEY MARKET FUND - STATEMENT OF NET ASSETS continued
November 30, 1998 (Unaudited) 79
===============================================================================
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------ ------------
<S> <C> <C>
INSURANCE - MULTILINE - 3.38%
Marsh & McLennan Companies Inc.:
$2,500,000 5.23% due 12/17/1998........................... $ 2,494,189
3,348,000 5.18% due 03/24/1999........................... 3,293,563
2,000,000 5.06% due 03/26/1999........................... 1,967,672
------------
7,755,424
------------
MACHINERY - INDUSTRIAL/SPECIALTY - 2.17%
Dover Corp.:
2,500,000 5.22% due 01/15/1999........................... 2,483,688
2,500,000 5.18% due 01/04/1999........................... 2,487,769
------------
4,971,457
------------
MERCHANDISE - SPECIALTY - 1.08%
2,500,000 Fortune Brands,
5.30% due 01/11/1999........................... 2,484,910
------------
OIL - INTEGRATED DOMESTIC - 0.86%
2,000,000 Atlantic Richfield Co.,
4.95% due 04/05/1999........................... 1,965,625
------------
OIL - INTEGRATED INTERNATIONAL - 1.18%
2,705,000 Shell Oil Co.,
6.95% due 12/15/1998........................... 2,706,273
------------
SECURITIES RELATED - 12.59%
Bear Stearns Co. Inc.:
1,000,000 6.08% due 10/06/1999........................... 1,006,779
3,000,000 Floating rate note due 06/07/1999,
5.56188% at 11/30/98........................... 3,000,000
2,000,000 Floating rate note due 04/06/1999,
5.2525% at 11/30/98............................ 2,000,000
3,000,000 Floating rate note due 04/30/1999,
5.15969% at 11/30/98........................... 3,000,000
Merrill Lynch & Co. Inc.:
650,000 5.44% due 12/11/1998........................... 649,018
400,000 5.18% due 01/15/1999........................... 397,410
900,000 5.16% due 03/11/1999........................... 887,100
1,300,000 5.16% due 03/15/1999........................... 1,280,621
2,000,000 5.16% due 03/16/1999........................... 1,969,900
350,000 5.13% due 01/04/1999........................... 348,304
225,000 5.13% due 01/29/1999........................... 223,108
305,000 5.13% due 03/19/1999........................... 300,306
1,025,000 5.07% due 01/15/1999........................... 1,018,504
2,500,000 5.06% due 01/25/1999........................... 2,480,674
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------ ------------
<S> <C> <C>
Morgan Stanley, Dean Witter, Discover:
$3,000,000 5.63% due 03/01/1999........................... $ 2,999,072
2,500,000 5.35% due 01/11/1999........................... 2,484,767
850,000 5.35% due 01/12/1999........................... 844,695
2,000,000 5.29% due 02/26/1999........................... 1,974,432
1,300,000 5.10% due 02/12/1999........................... 1,286,556
725,000 5.08% due 02/05/1999........................... 718,248
------------
28,869,494
------------
UTILITIES - COMMUNICATION - 5.26%
BellSouth Telecomm:
4,119,000 5.07% due 02/23/1999........................... 4,070,272
368,000 5.00% due 01/27/1999........................... 365,087
GTE Corp.:
1,900,000 5.50% due 02/09/1999........................... 1,879,681
1,600,000 5.47% due 02/12/1999........................... 1,582,253
1,700,000 5.40% due 01/26/1999.......................... 1,685,720
2,500,000 5.40% due 02/11/1999........................... 2,473,000
------------
12,056,013
------------
TOTAL CORPORATE SHORT TERM
COMMERCIAL PAPER
(Cost $197,118,708).............................. 189,118,708
------------
FOREIGN GOVERNMENT BONDS - 0.54%
CANADA - 0.54%
1,250,000 British Columbia Province,
5.02% due 12/21/1998........................... 1,246,514
------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $1,246,514)........................... 1,246,514
------------
UNITED STATES GOVERNMENT
SHORT TERM - 13.03%
1,000,000 Federal Farm Credit Bank,
5.50% due 04/01/1999........................... 999,428
Federal Home Loan Bank:
1,000,000 5.60% due 03/10/1999........................... 1,000,014
1,000,000 5.56% due 03/25/1999........................... 999,664
1,000,000 5.50% due 03/26/1999........................... 999,669
1,000,000 5.48% due 12/07/1998........................... 999,980
2,000,000 5.09% due 11/05/1999........................... 2,000,000
3,000,000 5.03% due 10/29/1999........................... 3,000,000
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
- ------------ ------------
<S> <C> <C>
UNITED STATES GOVERNMENT
SHORT TERM-Continued
Federal Home Loan Mortgage Corp.:
$4,000,000 5.04% due 12/07/1998........................... $ 3,996,640
2,000,000 5.02% due 11/05/1999........................... 2,000,000
Federal National Mortgage Association:
1,000,000 5.65% due 04/09/1999........................... 999,905
1,000,000 5.63% due 05/05/1999........................... 999,622
2,000,000 5.57% due 05/07/1999........................... 1,998,486
2,000,000 5.29% due 12/18/1998........................... 1,995,004
3,000,000 5.00% due 01/08/1999........................... 2,984,167
4,946,000 4.87% due 02/05/1999........................... 4,901,840
------------
29,874,419
------------
TOTAL UNITED STATES GOVERNMENT
SHORT TERM
(Cost $29,874,419)............................... 29,874,419
------------
TOTAL INVESTMENTS
(Cost $228,239,641) - 99.53%.. 228,239,641
Other assets less liabilities,
net - 0.47%..................................... 1,084,524
------------
NET ASSETS (equivalent
to $1.00 per share on
229,324,165 shares
outstanding) - 100%............................. $229,324,165
============
NET ASSETS REPRESENTED BY:
Capital stock, $.01 par value per share,
1,000,000,000 shares authorized,
229,324,165 shares outstanding............................. 2,293,242
Additional paid in capital................................... 227,030,923
------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING.................................................. $229,324,165
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 82
===============================================================================
80 MONEY MARKET FUND - FINANCIAL STATEMENTS (Unaudited)
===============================================================================
STATEMENT OF OPERATIONS
For the six months ended November 30, 1998
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest .................................................. $5,994,442
----------
EXPENSES:
Advisory fees ............................................. 540,476
Custodian and accounting services ......................... 24,429
Reports to shareholders ................................... 15,616
Audit fees and tax services ............................... 3,783
Directors' fees and expenses .............................. 2,631
Miscellaneous ............................................. 5,892
----------
Total expenses .......................................... 592,827
----------
NET INVESTMENT INCOME ..................................... 5,401,615
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $5,401,615
==========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
six months ended fiscal year ended
November 30, 1998 May 31, 1998
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income .............................. $ 5,401,615 $ 7,739,732
------------- -------------
Increase in net assets resulting from operations.. 5,401,615 7,739,732
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .............................. (5,401,615) (7,739,732)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold ................... 164,453,163 331,782,891
Proceeds from capital stock issued for
distributions reinvested ........................ 5,401,615 7,739,732
------------- -------------
169,854,778 339,522,623
Cost of capital stock repurchased .................. (131,506,063) (276,671,818)
------------- -------------
Increase in net assets resulting from capital
stock transactions ............................. 38,348,715 62,850,805
------------- -------------
TOTAL INCREASE IN NET ASSETS ....................... 38,348,715 62,850,805
NET ASSETS:
Beginning of period ................................ 190,975,450 128,124,645
------------- -------------
End of period ...................................... $ 229,324,165 $ 190,975,450
============= =============
CHANGE IN SHARES OUTSTANDING:
Shares of capital stock sold ....................... 164,453,164 331,782,891
Shares issued for distributions reinvested ......... 5,401,615 7,739,732
Shares of capital stock repurchased ................ (131,506,064) (276,671,818)
------------- -------------
Increase in shares outstanding ................... 38,348,715 62,850,805
Shares outstanding:
Beginning of period .............................. 190,975,450 128,124,645
------------- -------------
End of period .................................... 229,324,165 190,975,450
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 83
===============================================================================
NOTES TO FINANCIAL STATEMENTS (Unaudited) 81
===============================================================================
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> 84
===============================================================================
82 NOTES TO FINANCIAL STATEMENTS (Unaudited) CONTINUED
===============================================================================
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,
1998, the Series paid VALIC $495,993 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,
1998, the Series paid $2,280 for such services.
During the six months ended November 30, 1998, 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 $40,645,652 $18,297,519
</TABLE>
At November 30, 1998, VALIC Separate Account A (a registered separate
account of VALIC) owned over five percent of the outstanding shares of the
following Funds:
<TABLE>
<CAPTION>
VALIC SEPARATE
ACCOUNT A
--------------
<S> <C>
Stock Index Fund ............................................... 97.13%
MidCap Index Fund .............................................. 99.97
Small Cap Index Fund ........................................... 100.00
International Equities Fund .................................... 99.92
Growth Fund .................................................... 97.99
Growth & Income Fund ........................................... 100.00
Science & Technology Fund ...................................... 100.00
Social Awareness Fund .......................................... 99.99
Asset Allocation Fund .......................................... 99.95
Capital Conservation Fund ...................................... 100.00
Government Securities Fund ..................................... 100.00
International Government Bond Fund ............................. 100.00
Money Market Fund .............................................. 99.64
</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 30,1998.
<TABLE>
<CAPTION>
IDENTIFIED COST GROSS GROSS
OF INVESTMENTS UNREALIZED UNREALIZED NET UNREALIZED
OWNED APPRECIATION DEPRECIATION APPRECIATION
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Stock Index Fund ............. $1,851,439,873 $2,063,434,110 $ 50,953,121 $2,012,480,989
MidCap Index Fund ............ 601,706,069 235,879,807 68,898,592 166,981,215
Small Cap Index Fund ......... 207,883,140 41,540,212 35,059,131 6,481,081
International Equities Fund... 110,429,424 54,935,052 22,219,252 32,715,800
Growth Fund .................. 867,758,005 287,925,726 52,464,502 235,461,224
Growth & Income Fund ......... 185,222,633 74,780,958 3,635,376 71,145,582
Science & Technology Fund .... 966,287,292 252,274,629 64,470,250 187,804,379
Social Awareness Fund ........ 343,844,974 75,195,214 14,261,286 60,933,928
Asset Allocation Fund ........ 200,281,075 51,943,955 2,777,942 49,166,013
Capital Conservation Fund .... 64,002,206 1,956,026 1,292,003 664,023
Government Securities Fund ... 104,400,695 5,266,488 87,992 5,178,496
International Government
Bond Fund ................. 150,724,078 11,363,283 4,840,270 6,523,013
Money Market Fund ............ 228,239,641 0 0 0
</TABLE>
The following net realized capital loss carryforwards at November 30, 1998,
may be utilized to offset future capital gains.
<TABLE>
<CAPTION>
CAPITAL LOSS CARRYFORWARD EXPIRATION THROUGH
-------------------------- -------------------
<S> <C> <C>
Capital Conservation Fund .... 517,286 May 31, 2003
Government Securities Fund ... 1,734,344 May 31, 2003
Money Market Fund ............ 3,017 May 31, 2004
</TABLE>
<PAGE> 85
===============================================================================
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONTINUED 83
===============================================================================
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 .................... $ 290,835,805 $ 161,687,086
MidCap Index Fund ................... 135,204,099 167,282,088
Small Cap Index Fund ................ 77,192,326 76,074,185
International Equities Fund ......... 4,691,686 13,707,849
Growth Fund ......................... 334,101,094 295,641,866
Growth & Income Fund ................ 162,069,566 181,071,524
Science & Technology Fund ........... 573,915,502 611,537,625
Social Awareness Fund ............... 204,940,524 154,565,004
Asset Allocation Fund ............... 92,469,552 78,843,111
Capital Conservation Fund ........... 18,812,422 19,891,523
Government Securities Fund .......... 31,857,589 14,165,988
International Government Bond Fund... 13,986,924 20,767,444
</TABLE>
NOTE 5 -- PORTFOLIO SECURITIES LOANED
To realize additional income, a Fund may lend portfolio securities with a
value of up to 30% (33 1/3% 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, 1998 are summarized as
follows:
<TABLE>
<CAPTION>
MARKET VALUE COLLATERAL VALUE
--------------- ----------------
<S> <C> <C>
Stock Index Fund.............. $ 11,653,552 $ 12,026,772
MidCap Index Fund............. 10,692,871 11,095,596
Small Cap Index Fund.......... 13,532,183 14,183,643
International Equities Fund... 9,627,963 9,920,840
Growth & Income Fund.......... 1,471,088 1,504,900
Science & Technology Fund..... 51,246,976 53,163,005
Social Awareness Fund......... 1,497,850 1,545,600
Asset Allocation Fund......... 2,146,653 2,192,900
Capital Conservation Fund..... 2,076,192 2,119,000
Total ..................... $ 103,945,328 $ 107,752,256
--------------- ----------------
</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,
1998, Government Securities Fund had 55.45% of its net assets invested in such
securities.
At November 30, 1998, International Government Bond Fund had 19.49% of its
net assets invested in securities issued by the Government of Japan and an
additional 4% 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 EVENTS
On December 30, 1998, annual distributions from undistributed net realized
gains on investments were declared payable on December 31, 1998, to shareholders
of record December 30, 1998, as follows:
<TABLE>
<CAPTION>
RATE
PER SHARE
---------
<S> <C>
Stock Index Fund ................................. 0.1472
MidCap Index Fund ................................ 2.2617
Small Cap Index Fund ............................. 1.3602
International Equities Fund ...................... 0.9050
Growth Fund ...................................... 1.0129
Growth & Income Fund ............................. 1.5339
Social Awareness Fund ............................ 2.1153
Asset Allocation Fund ............................ 0.8532
International Government Bond Fund ............... 0.0662
</TABLE>
On January 19, 1999, the Board of Directors of the Series approved the
termination of Value Line, Inc., as sub-adviser of the Growth & Income Fund.
VALIC expects to re-assume direct management of the Fund's investment portfolio
on February 22, 1999.
NOTE 8 -- YEAR 2000
VALIC is in the process of modifying its systems to achieve Year 2000
readiness. This endeavor is directed and managed by VALIC and monitored by the
parent company, American General Corporation. VALIC has developed clearly
defined and documented plans that have been implemented to minimize the risk of
significant negative impact on its operations.
These plans include the following activities: (1) perform an inventory of
VALIC's information technology and non-information technology systems; (2)
assess which items in the inventory may expose VALIC to business interruptions
due to Year 2000 issues; (3) test systems for Year 2000 readiness; (4) reprogram
or replace systems that are not Year 2000 ready; and (5) return the systems to
operation. VALIC expects to complete the forgoing activities for all critical
business systems relevant to the Series by December 1998.
In addition, the Series and VALIC have business relationships with various
third parties, each of which must also be Year 2000 ready. Therefore, VALIC's
plans also include assessing and attempting to mitigate the risks associated
with the potential failure of third parties, as well as contingency plans for
any identified risks or shortcomings, to achieve Year 2000 readiness. Due to the
various stages of the third parties' Year 2000 readiness, VALIC's efforts in
this regard will extend through 1999.
Through October 31, 1998, VALIC has incurred and expensed $18.8 million
(pretax) related to Year 2000 readiness, including $12.3 million incurred during
the first ten months of 1998. VALIC currently anticipates that it will incur
future costs of $7.9 million (pretax) for additional internal staff, third party
vendors, and other expenses for the remainder of 1998 to achieve Year 2000
readiness.
As of this date, VALIC has completed the inventory, assessment, testing,
reprogramming and implementation phases of the plan with respect to its critical
systems. VALIC believes its comprehensive plan and resource commitment will
allow it to meet its Year 2000 objectives. However, the Year 2000 issue remains
complex and the risks, uncertainties, and unforeseen circumstances associated
with the Year 2000 issue could have a material adverse impact on VALIC and the
Series.
<PAGE> 86
===============================================================================
84 FINANCIAL HIGHLIGHTS (Unaudited)
===============================================================================
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 June 1, 1996.
STOCK INDEX FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------
1998 1998 1997 1996
----------- ----------- ----------- -----------
PER SHARE DATA
<S> <C> <C> <C> <C>
Net asset value at beginning of
period ................................ $ 33.38 $ 26.09 $ 20.69 $ 16.81
----------- ----------- ----------- -----------
Income from investment operations:
Net investment income ................. 0.20 0.40 0.39 0.39
Net realized and unrealized gain
on securities ....................... 2.35 7.44 5.57 4.26
----------- ----------- ----------- -----------
Total income from investment
operations .......................... 2.55 7.84 5.96 4.65
----------- ----------- ----------- -----------
Distributions:
Distributions from net investment
income .............................. (0.20) (0.40) (0.39) (0.38)
Distributions from net realized gain
on securities ....................... -- (0.15) (0.17) (0.39)
----------- ----------- ----------- -----------
Total distributions ................... (0.20) (0.55) (0.56) (0.77)
----------- ----------- ----------- -----------
Net asset value at end of period ........ $ 35.73 $ 33.38 $ 26.09 $ 20.69
=========== =========== =========== ===========
TOTAL RETURN ............................ 7.67% 30.30% 29.24% 28.17%
=========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ............................ 0.16% 0.31% 0.34% 0.35%
Ratio of net investment income to
average net assets .................... 0.60% 1.33% 1.76% 2.05%
Portfolio turnover rate ................. 5% 3% 3% 3%
Number of shares outstanding at
end of period (000's) ................. 108,284 104,334 93,687 85,117
Net assets at end of period (000's) ..... $ 3,868,679 $3,482,655 $ 2,444,200 $ 1,760,786
Average net assets during the
period (000's) ........................ $ 3,531,045 $ 2,968,059 $ 2,019,826 $ 1,498,398
Average commission rate paid ............ $ 0.0257 $ 0.0283 $ 0.0281 n/a
</TABLE>
<TABLE>
<CAPTION>
FISCAL YEAR ENDED MAY 31,
-----------------------------
1995 1994
----------- -----------
PER SHARE DATA
<S> <C> <C>
Net asset value at beginning of
period ................................ $ 14.39 $ 14.36
------------- -------------
Income from investment operations:
Net investment income ................. 0.37 0.35
Net realized and unrealized gain
on securities ....................... 2.45 0.12
------------- -------------
Total income from investment
operations .......................... 2.82 0.47
------------- -------------
Distributions:
Distributions from net investment
income .............................. (0.37) (0.35)
Distributions from net realized gain
on securities ....................... (0.03) (0.09)
------------- -------------
Total distributions ................... (0.40) (0.44)
------------- -------------
Net asset value at end of period ........ $ 16.81 $ 14.39
============= =============
TOTAL RETURN ............................ 19.98% 3.29%
============= =============
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ............................ 0.38% 0.39%
Ratio of net investment income to
average net assets .................... 2.44% 2.44%
Portfolio turnover rate ................. 14% 3%
Number of shares outstanding at
end of period (000's) ................. 75,451 75,494
Net assets at end of period (000's) ..... $ 1,267,992 $ 1,086,459
Average net assets during the
period (000's) ........................ $ 1,140,085 $ 1,030,581
Average commission rate paid ............ n/a n/a
</TABLE>
<TABLE>
<CAPTION>
MIDCAP INDEX FUND
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
------------ --------- --------- --------- --------- ---------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 25.27 $ 20.83 $ 19.09 $ 15.68 $ 14.54 $ 14.38
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income ............... 0.11 0.23 0.24 0.24 0.26 0.23
Net realized and unrealized gain
(loss) on securities .............. (0.48) 5.80 2.95 4.06 1.59 0.28
--------- --------- --------- --------- --------- ---------
Total income (loss) from
investment operations ............. (0.37) 6.03 3.19 4.30 1.85 0.51
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ............................ (0.11) (0.23) (0.24) (0.24) (0.26) (0.23)
Distributions from net realized
gain on securities ................ -- (1.36) (1.21) (0.65) (0.45) (0.12)
--------- --------- --------- --------- --------- ---------
Total distributions ................. (0.11) (1.59) (1.45) (0.89) (0.71) (0.35))
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ...... $ 24.79 $ 25.27 $ 20.83 $ 19.09 $ 15.68 $ 14.54
========= ========= ========= ========= ========= =========
TOTAL RETURN .......................... (1.42)% 29.62% 17.48% 28.10% 13.26% 3.52%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.19% 0.36% 0.40% 0.41% 0.44% 0.46%
Ratio of net investment income to
average net assets .................. 0.48% 0.95% 1.24% 1.36% 1.73% 1.62%
Portfolio turnover rate ............... 18% 26% 19% 21% 23% 17%
Number of shares outstanding at
end of period (000's) ............... 30,942 31,830 29,137 28,322 25,988 24,001
Net assets at end of period (000's) ... $ 766,997 $ 804,318 $ 607,061 $ 540,688 $ 407,557 $ 349,041
Average net assets during the
period (000's) ...................... $ 741,052 $ 722,652 $ 554,397 $ 477,372 $ 376,486 $ 285,247
Average commission rate paid .......... $ 0.0239 $ 0.0278 $ 0.0277 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 June 1, 1996.
<TABLE>
<CAPTION>
SMALL CAP INDEX FUND
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
--------- --------- --------- --------- --------- ---------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 17.94 $ 16.18 $ 16.25 $ 12.49 $ 11.52 $ 11.28
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income ............... 0.10 0.19 0.19 0.20 0.17 0.13
Net realized and unrealized gain
(loss) on securities .............. (2.27) 3.17 0.93 4.04 0.97 0.58
--------- --------- --------- --------- --------- ---------
Total income (loss) from
investment operations ............. (2.17) 3.36 1.12 4.24 1.14 0.71
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ............................ (0.10) (0.19) (0.19) (0.20) (0.17) (0.13)
Distributions from net realized
gain on securities ................ -- (1.41) (1.00) (0.28) -- (0.34)
--------- --------- --------- --------- --------- ---------
Total distributions ................. (0.10) (1.60) (1.19) (0.48) (0.17) (0.47)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ...... $ 15.67 $ 17.94 $ 16.18 $ 16.25 $ 12.49 $ 11.52
========= ========= ========= ========= ========= =========
TOTAL RETURN .......................... (12.09)% 21.34% 7.51% 34.50% 9.98% 6.18%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.20% 0.39% 0.41% 0.41% 0.44% 0.47%
Ratio of net investment income to
average net assets .................. 0.64% 1.05% 1.34% 1.36% 1.44% 1.10%
Portfolio turnover rate ............... 36% 36% 42% 31% 34% 16%
Number of shares outstanding at
end of period (000's) ............... 13,660 13,777 11,893 11,129 10,136 9,381
Net assets at end of period (000's) ... $ 214,103 $ 247,183 $ 192,459 $ 180,785 $ 126,567 $ 108,050
Average net assets during the
period (000's) ...................... $ 216,147 $ 227,757 $ 178,368 $ 150,448 $ 120,298 $ 70,690
Average commission rate paid .......... $ 0.0078 $ 0.0162 $ 0.0297 n/a n/a n/a
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITIES FUND
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
------------ --------- --------- --------- --------- ---------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 11.95 $ 11.44 $ 11.15 $ 10.42 $ 10.14 $ 8.99
--------- --------- --------- --------- --------- ---------
Income (loss) from investment
operations:
Net investment income ............... 0.14 0.23 0.20 0.17 0.15 0.11
Net realized and unrealized
gain (loss) on securities and
foreign currencies ................ (0.12) 0.85 0.63 0.97 0.34 1.17
--------- --------- --------- --------- --------- ---------
Total income from investment
operations ........................ 0.02 1.08 0.83 1.14 0.49 1.28
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ............................ (0.13) (0.24) (0.19) (0.17) (0.15) (0.11)
Distributions from net realized
gain on securities ................ -- (0.33) (0.35) (0.24) (0.06) (0.02)
--------- --------- --------- --------- --------- ---------
Total distributions ................. (0.13) (0.57) (0.54) (0.41) (0.21) (0.13)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ...... $ 11.84 $ 11.95 $ 11.44 $ 11.15 $ 10.42 $ 10.14
========= ========= ========= ========= ========= =========
TOTAL RETURN .......................... 0.23% 9.92% 7.74% 11.14% 4.92% 14.31%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.21% 0.40% 0.42% 0.42% 0.45% 0.47%
Ratio of net investment income to
average net assets .................. 1.04% 1.92% 1.75% 1.65% 1.47% 1.43%
Portfolio turnover rate ............... 3% 9% 12% 20% 14% 7%
Number of shares outstanding at
end of period (000's) ............... 12,110 13,009 15,857 18,497 20,074 17,273
Net assets at end of period (000's) ... $ 143,427 $ 155,469 $ 181,437 $ 206,259 $ 209,091 $ 175,183
Average net assets during the
period (000's) ...................... $ 143,621 $ 165,984 $ 191,117 $ 204,792 $ 199,235 $ 117,264
Average commission rate paid .......... $ 0.0258 $ 0.0332 $ 0.0236 n/a n/a n/a
</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. The average commission rate paid on investment equity securities (on
a per share basis) is presented for the periods beginning June 1, 1996.
GROWTH FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -------------------------------------------------------------
1998 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 22.08 $ 17.62 $ 16.49 $ 11.43 $ 9.87
---------- ---------- ---------- ---------- ----------
Income (loss) from investment
operations:
Net investment income ............. (0.07) (0.02) 0.02 0.11 0.04
Net realized and unrealized gain
(loss) on securities ............ (0.66) 4.82 1.45 5.27 1.56
---------- ---------- ---------- ---------- ----------
Total income (loss) from
investment operations ............ (0.73) 4.80 1.47 5.38 1.60
---------- ---------- ---------- ---------- ----------
Distributions:
Distributions from net investment
income ............................ -- (0.01) (0.01) (0.09) (0.04)
Distributions from net realized
gain on securities ................ -- (0.33) (0.33) (0.23) --
---------- ---------- ---------- ---------- ----------
Total distributions ................. -- (0.34) (0.34) (0.32) (0.04)
---------- ---------- ---------- ---------- ----------
Net asset value at end of period ...... $ 21.35 $ 22.08 $ 17.62 $ 16.49 $ 11.43
========== ========== ========== ========== ==========
TOTAL RETURN .......................... (3.31)% 27.41% 9.00% 47.46% 16.25%
========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.43% 0.84% 0.86% 0.83% 0.91%
Ratio of net investment income to
average net assets .................. (0.16)% (0.11)% 0.09% 0.89% 0.41%
Portfolio turnover rate ............... 29% 43% 40% 36% 61%
Number of shares outstanding at
end of period (000's) ............... 52,006 49,832 42,422 25,826 8,800
Net assets at end of period (000's) ... $1,110,208 $1,100,137 $ 747,654 $ 425,787 $ 100,614
Average net assets during the
period (000's) ...................... $1,072,354 $ 946,335 $ 588,056 $ 238,228 $ 42,232
Average commission rate paid .......... $ 0.0544 $ 0.0474 $ 0.0499 n/a n/a
</TABLE>
GROWTH & INCOME FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -------------------------------------------------------------
1998 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 19.91 $ 16.87 $ 14.78 $ 11.09 $ 9.87
---------- ---------- ---------- ---------- ----------
Income (loss) from investment
operations:
Net investment income ............... 0.06 0.08 0.10 0.08 0.09
Net realized and unrealized
gain (loss) on securities ......... (0.65) 3.25 2.38 3.77 1.22
---------- ---------- ---------- ---------- ----------
Total income (loss) from
investment operations ............. (0.59) 3.33 2.48 3.85 1.31
---------- ---------- ---------- ---------- ----------
Distributions:
Distributions from net investment
income ............................ (0.04) (0.08) (0.10) (0.07) (0.09)
Distributions from net realized
gain on securities ................ -- (0.21) (0.29) (0.09) --
---------- ---------- ---------- ---------- ----------
Total distributions ................. (0.04) (0.29) (0.39) (0.16) (0.09)
---------- ---------- ---------- ---------- ----------
Net asset value at end of period ...... $ 19.28 $ 19.91 $ 16.87 $ 14.78 $ 11.09
========== ========== ========== ========== ==========
TOTAL RETURN .......................... (2.97)% 19.87% 17.08% 34.85% 13.35%
========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.40% 0.80% 0.81% 0.79% 0.86%
Ratio of net investment income to
average net assets .................. 0.19% 0.43% 0.70% 0.63% 0.93%
Portfolio turnover rate ............... 67% 78% 45% 64% 97%
Number of shares outstanding at end
of period (000's) ................... 13,299 13,619 12,422 7,685 3,867
Net assets at end of period (000's) ... $ 256,354 $ 271,159 $ 209,545 $ 113,546 $ 42,867
Average net assets during the
period (000's) ...................... $ 253,895 $ 252,647 $ 161,226 $ 75,158 $ 21,910
Average commission rate paid .......... $ 0.050 $ 0.0500 $ 0.0500 n/a n/a
</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. 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 June 1, 1996.
SCIENCE & TECHNOLOGY FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30,------------------------------------------------------------------
1998 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 22.07 $ 19.88 $ 20.48 $ 14.43 $ 9.83
---------- ---------- ---------- ---------- ----------
Income (loss) from investment
operations:
Net investment income ............... (0.16) (0.09) -- -- 0.03
Net realized and unrealized gain
(loss) on securities .............. 2.31 2.28 0.33 8.08 4.72
---------- ---------- ---------- ---------- ----------
Total income (loss) from
investment operations ............... 2.15 2.19 0.33 8.08 4.75
---------- ---------- ---------- ---------- ----------
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 ...... $ 24.22 $ 22.07 $ 19.88 $ 20.48 $ 14.43
========== ========== ========== ========== ==========
TOTAL RETURN .......................... 9.74% 10.85% 1.81% 58.28% 48.61%
========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.47% 0.95% 0.96% 0.94% 1.00%
Ratio of net investment income to
average net assets .................. (0.29)% (0.46)% (0.29)% (0.07)% 0.36%
Portfolio turnover rate ............... 60% 128% 122% 116% 121%
Number of shares outstanding at end
of period (000's) ................... 47,651 46,355 40,484 27,696 11,550
Total net assets at
end of period (000's) ............... $1,154,283 $1,023,141 $ 804,982 $ 567,187 $ 166,683
Average net assets during the
period (000's) ...................... $1,007,553 $ 949,947 $ 664,608 $ 363,087 $ 64,974
Average commission rate paid .......... $ 0.0455 $ 0.0455 $ 0.0393 n/a n/a
</TABLE>
SOCIAL AWARENESS FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30,-----------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
------------ --------- --------- --------- --------- ---------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 22.16 $ 17.90 $ 15.49 $ 13.02 $ 11.98 $ 12.12
--------- --------- --------- --------- --------- ---------
Income (loss) from investment
operations:
Net investment income ............... 0.11 0.23 0.24 0.26 0.27 0.26
Net realized and unrealized gain
(loss) on securities .............. 1.44 5.07 4.19 3.37 1.75 (0.02)
--------- --------- --------- --------- --------- ---------
Total income from investment
operations .......................... 1.55 5.30 4.43 3.63 2.02 0.24
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ............................ (0.11) (0.23) (0.24) (0.25) (0.27) (0.26)
Distributions from net realized
gain on securities ................ -- (0.81) (1.78) (0.91) (0.71) (0.12)
--------- --------- --------- --------- --------- ---------
Total distributions ................. (0.11) (1.04) (2.02) (1.16) (0.98) (0.38)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ...... $ 23.60 $ 22.16 $ 17.90 $ 15.49 $ 13.02 $ 11.98
========= ========= ========- ========= ========= =========
TOTAL RETURN .......................... 7.02% 30.34% 30.48% 28.85% 18.19% 1.97%
========= ========= ========- ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.28% 0.54% 0.56% 0.56% 0.58% 0.60%
Ratio of net investment income to
average net assets .................. 0.52% 1.17% 1.53% 1.80% 2.22% 2.19%
Portfolio turnover rate ............... 45% 120% 109% 117% 148% 83%
Number of shares outstanding at end
of period (000's) ................... 17,167 15,080 8,677 5,220 4,143 3,817
Total net assets at
end of period (000's) ............... $405,191 $334,167 $155,349 $ 80,887 $ 53,927 $ 45,729
Average net assets during the
period (000's) ...................... $355,436 $240,782 $106,139 $ 66,888 $ 47,942 $ 41,002
Average commission rate paid .......... $ 0.0353 $ 0.0431 $ 0.0400 n/a n/a n/a
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 90
===============================================================================
88 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 June 1, 1996.
ASSET ALLOCATION FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
------------ --------- --------- --------- --------- ---------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 14.02 $ 12.57 $ 12.55 $ 11.24 $ 10.84 $ 11.18
--------- --------- --------- --------- --------- ---------
Income (loss) from investment
operations:
Net investment income ............... 0.20 0.41 0.77 0.44 0.44 0.37
Net realized and unrealized gain
(loss) on securities .............. 0.49 2.24 1.44 1.53 0.82 (0.15)
--------- --------- --------- --------- --------- ---------
Total income from investment
operations .......................... 0.69 2.65 2.21 1.97 1.26 0.22
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ............................ (0.20) (0.41) (0.78) (0.44) (0.44) (0.37)
Distributions from net realized
gain on securities ................ -- (0.79) (1.41) (0.22) (0.42) (0.19)
--------- --------- --------- --------- --------- ---------
Total distributions ................. (0.20) (1.20) (2.19) (0.66) (0.86) (0.56)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ...... $ 14.51 $ 14.02 $ 12.57 $ 12.55 $ 11.24 $ 10.84
========= ========= ========- ========= ========= =========
TOTAL RETURN .......................... 4.98% 21.94% 15.89% 17.90% 12.43% 1.86%
========= ========= ========- ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.28% 0.54% 0.57% 0.57% 0.58% 0.59%
Ratio of net investment income to
average net assets .................. 1.45% 3.02% 3.26% 3.62% 4.03% 3.24%
Portfolio turnover rate ............... 42% 24% 103% 119% 133% 76%
Number of shares outstanding at end
of period (000's) ................... 15,079 14,269 14,107 15,142 16,319 17,956
Total net assets at
end of period (000's) ............... $218,786 $200,099 $177,347 $190,024 $183,393 $194,576
Average net assets during the
period (000's) ...................... $204,483 $188,184 $179,615 $187,576 $186,487 $185,036
Average commission rate paid .......... $ 0.0359 $ 0.0205 $ 0.0401 n/a n/a n/a
</TABLE>
CAPITAL CONSERVATION FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30, -------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
------------ --------- --------- --------- --------- ---------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 9.68 $ 9.31 $ 9.23 $ 9.52 $ 9.13 $ 9.87
--------- --------- --------- --------- --------- ---------
Income (loss) from investment
operations:
Net investment income ............... 0.31 0.61 0.62 0.62 0.63 0.61
Net realized and unrealized gain
(loss) on securities .............. (0.05) 0.37 0.08 (0.29) 0.39 (0.69)
--------- --------- --------- --------- --------- ---------
Total income (loss) from 0.26 0.98 0.70 0.33 1.02 (0.08)
investment operations ............... --------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ............................ (0.30) (0.61) (0.62) (0.62) (0.63) (0.61)
Distributions from net realized
gain on securities ................ -- -- -- -- -- (0.05)
--------- --------- --------- --------- --------- ---------
Total distributions ................. (0.30) (0.61) (0.62) (0.62) (0.63) (0.66)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ...... $ 9.64 $ 9.68 $ 9.31 $ 9.23 $ 9.52 $ 9.13
========= ========= ========- ========= ========= =========
TOTAL RETURN .......................... 2.65% 10.76% 7.75% 3.41% 11.80% (1.13)%
========= ========= ========- ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.28% 0.54% 0.57% 0.57% 0.58% 0.59%
Ratio of net investment income to
average net assets .................. 3.16% 6.32% 6.59% 6.47% 6.88% 6.24%
Portfolio turnover rate ............... 30% 14% 45% 80% 100% 55%
Number of shares outstanding at end
of period (000's) ................... 6,868 6,577 7,168 7,604 6,935 6,712
Total net assets at
end of period (000's) ............... $ 66,179 $ 63,654 $ 66,747 $ 70,212 $ 66,031 $ 61,305
Average net assets during the
period (000's) ...................... $ 65,243 $ 66,996 $ 69,352 $ 70,271 $ 61,568 $ 59,210
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 91
===============================================================================
FINANCIAL HIGHLIGHTS (Unaudited) continued 89
===============================================================================
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 June 1, 1996.
GOVERNMENT SECURITIES FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30,-----------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
------------ --------- --------- --------- --------- ---------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 10.09 $ 9.67 $ 9.61 $ 9.89 $ 9.55 $ 10.30
--------- --------- --------- --------- --------- ---------
Income (loss) from investment
operations:
Net investment income ............... 0.28 0.58 0.59 0.61 0.60 0.55
Net realized and unrealized gain
(loss) on securities .............. 0.27 0.42 0.06 (0.28) 0.35 (0.59)
--------- --------- --------- --------- --------- ---------
Total income (loss) from
investment operations ............... 0.55 1.00 0.65 0.33 0.95 (0.04)
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ............................ (0.28) (0.58) (0.59) (0.61) (0.61) (0.55)
Distributions from net realized
gain on securities ................ -- -- -- -- -- (0.16)
--------- --------- --------- --------- --------- ---------
Total distributions ................. (0.28) (0.58) (0.59) (0.61) (0.61) (0.71)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ...... $ 10.36 $ 10.09 $ 9.67 $ 9.61 $ 9.89 $ 9.55
========= ========= ========- ========= ========= =========
TOTAL RETURN .......................... 5.49% 10.60% 6.94% 3.32% 10.43% (0.66)%
========= ========= ========- ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.28% 0.54% 0.56% 0.56% 0.58% 0.59%
Ratio of net investment income to
average net assets .................. 2.74% 5.82% 6.11% 6.21% 6.36% 5.44%
Portfolio turnover rate ............... 14% 24% 38% 36% 229% 85%
Number of shares outstanding at end
of period (000's) ................... 10,758 9,129 8,672 8,164 5,478 4,544
Total net assets at
end of period (000's) ............... $ 111,428 $ 92,120 $ 83,827 $ 78,423 $ 54,174 $ 43,401
Average net assets during the
period (000's) ...................... $ 102,045 $ 87,574 $ 83,293 $ 68,017 $ 45,200 $ 41,596
</TABLE>
INTERNATIONAL GOVERNMENT BOND FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30,-----------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
------------ --------- --------- --------- --------- ---------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period .............................. $ 11.42 $ 11.33 $ 11.79 $ 12.72 $ 10.97 $ 11.16
--------- --------- --------- --------- --------- ---------
Income (loss) from investment
operations:
Net investment income ............... (0.05) 0.56 0.63 0.65 0.65 0.62
Net realized and unrealized gain
(loss) on securities .............. 1.31 (0.26) (0.49) (0.89) 1.80 (0.20)
--------- --------- --------- --------- --------- ---------
Total income (loss) from
investment operations ............... 1.26 0.30 0.14 (0.24) 2.45 0.42
--------- --------- --------- --------- --------- ---------
Distributions:
Distributions from net investment
income ............................ (0.18) (0.20) (0.58) (0.68) (0.70) (0.60)
Distributions from net realized
gain on securities ................ -- (0.01) (0.02) (0.01) -- (0.01)
--------- --------- --------- --------- --------- ---------
Total distributions ................. (0.18) (0.21) (0.60) (0.69) (0.70) (0.61)
--------- --------- --------- --------- --------- ---------
Net asset value at end of period ...... $ 12.50 $ 11.42 $ 11.33 $ 11.79 $ 12.72 $ 10.97
========= ========= ========- ========= ========= =========
TOTAL RETURN .......................... 11.05% 2.65% 1.13% (1.91)% 23.23% 3.87%
========= ========= ========- ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.28% 0.55% 0.56% 0.56% 0.59% 0.48%
Ratio of net investment income to
average net assets .................. 2.20% 4.70% 5.13% 5.45% 5.83% 5.87%
Portfolio turnover rate ............... 9% 17% 4% 11% 6% 3%
Number of shares outstanding at end
of period (000's) ................... 13,383 13,646 15,680 12,073 6,111 3,741
Total net assets at
end of period (000's) ............... $ 167,312 $ 155,783 $ 177,709 $ 142,383 $ 77,734 $ 41,028
Average net assets during the
period (000's) ...................... $ 158,516 $ 168,439 $ 166,147 $ 114,693 $ 51,451 $ 33,561
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 92
===============================================================================
90 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.
MONEY MARKET FUND
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FISCAL YEAR ENDED MAY 31,
NOVEMBER 30,-----------------------------------------------------------------------------
1998 1998 1997 1996 1995 1994
------------ --------- --------- --------- --------- ---------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
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 0.05 0.03
--------- --------- --------- -------- -------- --------
Distributions:
Distributions from net investment
income ............................ (0.03) (0.05) (0.05) (0.05) (0.05) (0.03)
--------- --------- --------- -------- -------- --------
Net asset value at end of period ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ======== ======== ========
TOTAL RETURN .......................... 2.53% 5.25% 5.02% 5.26% 4.90% 2.83%
========= ========= ========= ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average
net assets .......................... 0.28% 0.54% 0.57% 0.57% 0.57% 0.58%
Ratio of net investment income to
average net assets .................. 2.54% 5.14% 4.95% 5.14% 4.75% 2.78%
Number of shares outstanding at end
of period (000's) ................... 229,324 190,975 128,125 83,618 82,255 50,533
Total net assets at
end of period (000's) ............... $ 229,324 $ 190,975 $ 128,125 $ 83,618 $ 82,255 $ 50,533
Average net assets during the
period (000's) ...................... $ 212,761 $ 150,625 $ 113,882 $ 84,271 $ 67,021 $ 46,222
</TABLE>
===============================================================================
SUPPLEMENTAL INFORMATION (Unaudited)
===============================================================================
ANNUAL MEETING OF SHAREHOLDERS
PROXY VOTING RESULTS
The Annual Meeting of Shareholders of American General Series Portfolio Company
was held on November 10, 1998. Shareholders of the Funds voted on proposals to
elect twelve members of the Board of Directors and to ratify the selection of
Ernst & Young LLP as independent auditors for the Series for the fiscal year
ending on May 31, 1999. The results of the proposals voted on by shareholders of
each Fund were as follows:
ASSET ALLOCATION FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 14,649,479 23,463 14,672,942
Dr. Timothy J. Ebner 14,649,479 23,463 14,672,942
Judge Gustavo E. Gonzales, Jr. 14,648,183 24,759 14,672,942
John A. Graf 14,649,479 23,463 14,672,942
Dr. Norman Hackerman 14,530,149 142,793 14,672,942
Dr. John Wm. Lancaster 14,626,880 46,062 14,672,942
Ben H. Love 14,648,183 24,759 14,672,942
Dr. John E. Maupin, Jr. 14,648,183 24,759 14,672,942
Dr. F. Robert Paulsen 14,626,880 46,062 14,672,942
Craig R. Rodby 14,649,479 23,463 14,672,942
Dr. R. Miller Upton 14,530,149 142,793 14,672,942
Thomas L. West 14,649,479 23,463 14,672,942
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
14,616,084 49,085 7,773 14,672,942
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 93
===============================================================================
SUPPLEMENTAL INFORMATION (Unaudited) continued 91
===============================================================================
CAPITAL CONSERVATION FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 6,649,981 159,645 6,809,626
Dr. Timothy J. Ebner 6,649,981 159,645 6,809,626
Judge Gustavo E. Gonzales, Jr. 6,649,981 159,645 6,809,626
John A. Graf 6,649,981 159,645 6,809,626
Dr. Norman Hackerman 6,374,777 434,849 6,809,626
Dr. John Wm. Lancaster 6,374,777 434,849 6,809,626
Ben H. Love 6,649,981 159,645 6,809,626
Dr. John E. Maupin, Jr. 6,649,981 159,645 6,809,626
Dr. F. Robert Paulsen 6,374,777 434,849 6,809,626
Craig R. Rodby 6,649,981 159,645 6,809,626
Dr. R. Miller Upton 6,374,777 434,849 6,809,626
Thomas L. West 6,649,981 159,645 6,809,626
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDINg
<S> <C> <C> <C>
6,192,488 503,316 113,822 6,809,626
</TABLE>
GOVERNMENT SECURITIES FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 10,078,999 191,780 10,270,779
Dr. Timothy J. Ebner 10,078,999 191,780 10,270,779
Judge Gustavo E. Gonzales, Jr. 10,078,999 191,780 10,270,779
John A. Graf 10,078,999 191,780 10,270,779
Dr. Norman Hackerman 9,874,674 396,105 10,270,779
Dr. John Wm. Lancaster 10,078,999 191,780 10,270,779
Ben H. Love 10,078,999 191,780 10,270,779
Dr. John E. Maupin, Jr. 10,078,999 191,780 10,270,779
Dr. F. Robert Paulsen 10,078,999 191,780 10,270,779
Craig R. Rodby 10,078,999 191,780 10,270,779
Dr. R. Miller Upton 9,939,504 331,275 10,270,779
Thomas L. West 10,078,999 191,780 10,270,779
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31,
1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
8,353,780 1,767,971 149,028 10,270,779
</TABLE>
GROWTH FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 50,464,412 1,104,476 51,568,888
Dr. Timothy J. Ebner 50,875,139 693,749 51,568,888
Judge Gustavo E. Gonzales, Jr. 50,823,327 745,561 51,568,888
John A. Graf 50,803,151 765,737 51,568,888
Dr. Norman Hackerman 50,510,267 1,058,621 51,568,888
Dr. John Wm. Lancaster 50,495,968 1,072,920 51,568,888
Ben H. Love 50,647,834 921,054 51,568,888
Dr. John E. Maupin, Jr. 50,875,139 693,749 51,568,888
Dr. F. Robert Paulsen 50,527,525 1,041,363 51,568,888
Craig R. Rodby 50,803,151 765,737 51,568,888
Dr. R. Miller Upton 50,503,364 1,065,524 51,568,888
Thomas L. West 50,809,561 759,327 51,568,888
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
49,862,302 502,017 1,204,569 51,568,888
</TABLE>
GROWTH & INCOME FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 13,099,393 333,647 13,433,040
Dr. Timothy J. Ebner 13,376,038 57,002 13,433,040
Judge Gustavo E. Gonzales, Jr. 13,366,494 66,546 13,433,040
John A. Graf 13,362,571 70,469 13,433,040
Dr. Norman Hackerman 13,309,328 123,712 13,433,040
Dr. John Wm. Lancaster 13,315,604 117,436 13,433,040
Ben H. Love 13,378,652 54,388 13,433,040
Dr. John E. Maupin, Jr. 13,376,038 57,002 13,433,040
Dr. F. Robert Paulsen 13,315,604 117,436 13,433,040
Craig R. Rodby 13,362,571 70,469 13,433,040
Dr. R. Miller Upton 13,318,219 114,821 13,433,040
Thomas L. West 13,362,571 70,469 13,433,040
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
13,137,961 63,147 231,932 13,433,040
</TABLE>
<PAGE> 94
===============================================================================
92 SUPPLEMENTAL INFORMATION (Unaudited) continued
===============================================================================
INTERNATIONAL EQUITIES FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 12,173,665 183,750 12,357,415
Dr. Timothy J. Ebner 12,198,915 158,500 12,357,415
Judge Gustavo E. Gonzales, Jr. 12,198,915 158,500 12,357,415
John A. Graf 12,198,915 158,500 12,357,415
Dr. Norman Hackerman 11,324,474 1,032,941 12,357,415
Dr. John Wm. Lancaster 11,324,474 1,032,941 12,357,415
Ben H. Love 11,988,097 369,318 12,357,415
Dr. John E. Maupin, Jr. 12,198,915 158,500 12,357,415
Dr. F. Robert Paulsen 11,324,474 1,032,941 12,357,415
Craig R. Rodby 12,198,915 158,500 12,357,415
Dr. R. Miller Upton 11,324,474 1,032,941 12,357,415
Thomas L. West 12,198,915 158,500 12,357,415
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
12,103,715 104,986 148,714 12,357,415
</TABLE>
INTERNATIONAL GOVERNMENT BOND FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 12,843,749 120,509 12,964,258
Dr. Timothy J. Ebner 12,840,310 123,948 12,964,258
Judge Gustavo E. Gonzales, Jr. 12,840,310 123,948 12,964,258
John A. Graf 12,776,106 188,152 12,964,258
Dr. Norman Hackerman 12,383,880 580,378 12,964,258
Dr. John Wm. Lancaster 12,425,536 538,722 12,964,258
Ben H. Love 12,755,215 209,043 12,964,258
Dr. John E. Maupin, Jr. 12,840,310 123,948 12,964,258
Dr. F. Robert Paulsen 12,480,949 483,309 12,964,258
Craig R. Rodby 12,776,106 188,152 12,964,258
Dr. R. Miller Upton 12,473,051 491,207 12,964,258
Thomas L. West 12,822,093 142,165 12,964,258
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
12,561,204 240,763 162,291 12,964,258
</TABLE>
MIDCAP INDEX FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 30,469,705 746,102 31,215,807
Dr. Timothy J. Ebner 30,579,048 636,759 31,215,807
Judge Gustavo E. Gonzales, Jr. 30,421,619 794,188 31,215,807
John A. Graf 30,570,166 645,641 31,215,807
Dr. Norman Hackerman 30,148,110 1,067,697 31,215,807
Dr. John Wm. Lancaster 30,146,885 1,068,922 31,215,807
Ben H. Love 30,552,095 663,712 31,215,807
Dr. John E. Maupin, Jr. 30,554,852 660,955 31,215,807
Dr. F. Robert Paulsen 30,304,313 911,494 31,215,807
Craig R. Rodby 30,579,048 636,759 31,215,807
Dr. R. Miller Upton 30,015,490 1,200,317 31,215,807
Thomas L. West 30,579,048 636,759 31,215,807
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
30,405,080 522,822 287,905 31,215,807
</TABLE>
MONEY MARKET FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 218,186,667 10,266,408 228,453,075
Dr. Timothy J. Ebner 218,186,667 10,266,408 228,453,075
Judge Gustavo E. Gonzales, Jr. 218,186,667 10,266,408 228,453,075
John A. Graf 218,186,667 10,266,408 228,453,075
Dr. Norman Hackerman 218,186,667 10,266,408 228,453,075
Dr. John Wm. Lancaster 218,186,667 10,266,408 228,453,075
Ben H. Love 218,186,667 10,266,408 228,453,075
Dr. John E. Maupin, Jr. 218,186,667 10,266,408 228,453,075
Dr. F. Robert Paulsen 218,186,667 10,266,408 228,453,075
Craig R. Rodby 218,186,667 10,266,408 228,453,075
Dr. R. Miller Upton 218,186,667 10,266,408 228,453,075
Thomas L. West 218,186,667 10,266,408 228,453,075
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
223,392,848 98,960 4,961,267 228,453,075
</TABLE>
<PAGE> 95
===============================================================================
SUPPLEMENTAL INFORMATION (Unaudited) continued 93
===============================================================================
SCIENCE & TECHNOLOGY FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 46,066,407 1,141,485 47,207,892
Dr. Timothy J. Ebner 46,495,443 712,449 47,207,892
Judge Gustavo E. Gonzales, Jr. 46,277,221 930,671 47,207,892
John A. Graf 46,371,479 836,413 47,207,892
Dr. Norman Hackerman 46,059,997 1,147,895 47,207,892
Dr. John Wm. Lancaster 45,993,176 1,214,716 47,207,892
Ben H. Love 46,308,345 899,547 47,207,892
Dr. John E. Maupin, Jr. 46,492,678 715,214 47,207,892
Dr. F. Robert Paulsen 46,188,109 1,019,783 47,207,892
Craig R. Rodby 46,377,009 830,883 47,207,892
Dr. R. Miller Upton 45,898,244 1,309,648 47,207,892
Thomas L. West 46,376,087 831,805 47,207,892
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
45,188,726 936,875 1,082,292 47,207,892
</TABLE>
SMALL CAP INDEX FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 13,256,839 242,035 13,498,874
Dr. Timothy J. Ebner 13,256,839 242,035 13,498,874
Judge Gustavo E. Gonzales, Jr. 13,256,839 242,035 13,498,874
John A. Graf 13,249,461 249,413 13,498,874
Dr. Norman Hackerman 13,040,761 458,113 13,498,874
Dr. John Wm. Lancaster 13,032,328 466,546 13,498,874
Ben H. Love 13,115,993 382,881 13,498,874
Dr. John E. Maupin, Jr. 13,256,839 242,035 13,498,874
Dr. F. Robert Paulsen 13,040,761 458,113 13,498,874
Craig R. Rodby 13,256,839 242,035 13,498,874
Dr. R. Miller Upton 13,040,761 458,113 13,498,874
Thomas L. West 13,256,839 242,035 13,498,874
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
13,339,318 36,496 123,060 13,498,874
</TABLE>
SOCIAL AWARENESS FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 16,227,886 222,643 16,450,529
Dr. Timothy J. Ebner 16,227,886 222,643 16,450,529
Judge Gustavo E. Gonzales, Jr. 16,022,091 428,438 16,450,529
John A. Graf 16,201,085 249,444 16,450,529
Dr. Norman Hackerman 16,189,783 260,746 16,450,529
Dr. John Wm. Lancaster 16,198,502 252,027 16,450,529
Ben H. Love 15,992,707 457,822 16,450,529
Dr. John E. Maupin, Jr. 16,227,886 222,643 16,450,529
Dr. F. Robert Paulsen 16,211,579 238,950 16,450,529
Craig R. Rodby 16,201,085 249,444 16,450,529
Dr. R. Miller Upton 16,189,783 260,746 16,450,529
Thomas L. West 16,201,085 249,444 16,450,529
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
15,969,078 336,629 144,822 16,450,529
</TABLE>
STOCK INDEX FUND
ELECTION OF TWELVE MEMBERS OF THE BOARD OF DIRECTORS:
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD TOTAL OUTSTANDING
<S> <C> <C> <C>
Dr. Judith L. Craven 105,248,388 1,493,854 106,742,242
Dr. Timothy J. Ebner 105,651,394 1,090,848 106,742,242
Judge Gustavo E. Gonzales, Jr. 105,392,900 1,349,342 106,742,242
John A. Graf 105,373,564 1,368,678 106,742,242
Dr. Norman Hackerman 104,560,429 2,181,813 106,742,242
Dr. John Wm. Lancaster 105,034,673 1,707,569 106,742,242
Ben H. Love 105,087,593 1,654,649 106,742,242
Dr. John E. Maupin, Jr. 105,693,119 1,049,123 106,742,242
Dr. F. Robert Paulsen 105,134,407 1,607,835 106,742,242
Craig R. Rodby 105,488,563 1,253,679 106,742,242
Dr. R. Miller Upton 104,623,526 2,118,716 106,742,242
Thomas L. West 105,370,511 1,371,731 106,742,242
</TABLE>
Ratify the selection of Ernst & Young LLP as independent auditors for the
Company for the fiscal year ending on May 31, 1999:
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN TOTAL OUTSTANDING
<S> <C> <C> <C>
104,182,327 615,322 1,944,593 106,742,242
</TABLE>
<PAGE> 96
===============================================================================
AMERICAN GENERAL SERIES PORTFOLIO COMPANY
===============================================================================
BOARD OF DIRECTORS
Judith L. Craven
Timothy J. Ebner
Gustavo E. Gonzales, Jr.
John A. Graf
Norman Hackerman
John W. Lancaster
Ben H. Love
John E. Maupin, Jr.
F. Robert Paulsen
Craig R. Rodby
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
John A. Graf,
President
Craig R. Rodby,
Executive Vice President
Michael G. Atnip,
Executive Vice President
John E. Arant,
Executive Vice President
Joe C. Osborne,
Executive Vice President
Peter V. Tuters,
Senior Vice President
Brent C. Nelson,
Vice President
Maruti D. More,
Vice President - Investments
Teresa S. Moro,
Vice President and Investment Officer
Leon A. Olver,
Vice President and Investment Officer
William Trimbur, Jr.,
Vice President and Investment Officer
Cynthia A. Toles,
Vice President and Secretary
Gregory R. Seward,
Treasurer
Kathryn A. Pearce,
Controller
Nori L. Gabert,
Vice President and Assistant Secretary
Jaime M. Sepulveda,
Assistant Treasurer
Earl E. Allen, Jr.,
Assistant Treasurer
Donna L. Hathaway,
Assistant Controller
Heriberto Valdez,
Assistant Controller
Cynthia A. Gibbons,
Assistant Vice President
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.
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AMERICAN GENERAL SERIES PORTFOLIO COMPANY Bulk Rate
U.S. Postage
P.O. Box 3206 PAID
Houston, Texas 77253-3206 Permit No. 6748
Houston, Texas
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VA 4873 VER 11/98 Recycled Paper
