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Dear Contractholder:
It would be difficult to imagine a more favorable environment for stocks and
bonds than the U.S. markets of 1995!
The combination of rapidly increasing corporate profits with almost no weak
sectors, very low inflation, rigorous monetary and (uncharacteristically) fiscal
restraint from Washington, and a world environment that favored both U.S.
businesses and U.S. investment securities pushed our stock markets ahead by 30%
to 40% and bonds by 15% to 35%. This was the fourth highest one-year percentage
increase in our stock market since World War II, and the third best bond market
gain since the 1930s.
By an even more meaningful measure, it was the best year ever. More worldwide
investor wealth was created in 1995 by increases in bond and stock market values
than ever before. And most of these gains came in the U.S. markets.
Congratulations to you for sharing in these gains through your ownership of the
Ultra Series Fund!
Ultra Series Fund 1995 Fund Return
----------------- ----------------
Capital Appreciation Stock Fund 30.8%
Growth and Income Stock Fund 31.8%
Balanced Fund 22.3%
Bond Fund 16.4%
Treasury 2000 Fund 21.0%
Money Market Fund 5.2%
Investors now face a difficult dilemma. Do we continue with our long-term
investment accumulation programs, or does the strong advance of 1995 somehow
doom the next few years to such weak returns that we should "cash out" and wait
on the sidelines for a more favorable time? Or, should we continue our programs,
but only in foreign investment markets that haven't run so far and so fast, at
least not recently?
Every investor knows the "right" answer to this question. No one can accurately
predict the future, but the long-term future is likely to resemble the long-term
past. And history shows that exceptional market years are usually immediately
followed by at least "good" market years, and longer-term results are as likely
to be good following a boom year as any other time. It is, in fact, more risky
for long-term investors to be out of the market than in, simply because returns
on stocks and bonds are higher on average than "safer" sideline investments like
CDs and money market funds.
In our view, today's economic and valuation measures also support this
conclusion. Corporate earnings growth rates will surely slow, but U.S. industry
continues to perform very well in the ever-expanding world markets. Inflationary
influences remain dormant. Central bankers are pursuing conservative policies,
and government deficits are shrinking. Population trends should extend all of
these favorable economic trends for many years. And, the mere continuation of
these trends in the near term should at least hold stock and bond market
valuations at current levels, and could fuel further strong advances. Although
1995-like returns should not be expected in 1996, we look for a good year, and a
very good next several years. We are investing accordingly.
Specific areas of particular interest for stock investments are those companies
which have moved beyond cost-cutting and reengineering (which Chuck Gibbons, our
senior stock portfolio manager, calls their "urge to purge"), through
restructurings and acquisitions (their "urge to merge") to the point where they
can now internally grow their businesses by serving growing end markets or by
creating a steady flow of new products and services to sell to existing markets
(fulfilling their "urge to surge"!). We also, however, need to see reasonable
valuations of these companies' stocks using reasonable expectations for the
future. We seek "safety" through conservative stock selection criteria and
rigorous sell disciplines, not by sitting on the sidelines. The current markets
1
<PAGE>
are presenting at least an adequate supply of stocks which appear worthy of
purchase, many of which serve fast-growing world markets from either a U.S. or
foreign headquarters.
In the bond markets, unpredictable changes in market interest rate levels will
always drive short-term returns. The consensus outlook is for stable rates in
1996, or even modest further declines, which could produce another year of
double digit returns. But, we don't seek to add value by guessing short-term
interest rate movements, concentrating instead on finding long-term value in
bonds of various sectors, quality ratings and issuers. All of our bond accounts
are of short or intermediate maturity because that's where adequate price
stability can be achieved. We have no trouble finding such reasonably priced
bonds as we enter the 1996 markets.
Additional descriptions of our specific portfolio management activities and
positions are presented in the following Management's Discussions of 1995
Performance for each of the Ultra Series Funds. We encourage you to read this
report and to contact your representative if you have any questions about these
funds.
We are very pleased to have been part of your investment success during the
great U.S. securities markets of 1995. We are even more pleased to have the
opportunity to work with you in the years ahead as we all pursue our long-term
investment programs.
Thank you for your confidence.
Respectfully,
/s/ Lawrence R. Halverson
Lawrence R. Halverson, CFA
Vice President
December 31, 1995
2
<PAGE>
CAPITAL APPRECIATION STOCK FUND OF ULTRA SERIES FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
At this place, the shareholder report shows a graphic representation of how the
Capital Appreciation Stock Fund compares to several indexes. $10,000 invested on
the inception date of January 3, 1994 would have the following value as of
December 31, 1995.
Capital Apppreciation Stock Fund* $13,785
S&P 500 Stock Index 13,932
Lipper Average** 12,937
Consumer Price Index 10,516
The scale on this chart is different from the scale on the other charts in this
report because the fund's inception date is January 3, 1994.
-------------------------------------------------------------------------
Average Annual Total Return Through December 31, 1995
-------------------------------------------------------------------------
One Five Since Inception
Year Years of Fund
---------------------------------- ---------- ---------- ----------------
Capital Appreciation Stock Fund*** 30.75% N/A 17.41%
S&P 500 Stock Index 37.53% N/A 18.03%
Lipper Average** 31.49% N/A 13.74%
Consumer Price Index 2.40% N/A 2.55%
---------------------------------- ---------- ---------- ----------------
TEN LARGEST HOLDINGS (% of Portfolio)
Wang Laboratories, Inc....... 3.6% MCI Communications.......... 3.0%
Pharmacia & Upjohn, Inc...... 3.2% AT&T Corporation............ 2.6%
Owens Illinois, Inc.......... 3.2% General Motors Corporation.. 2.2%
WMX Technologies, Inc........ 3.2% Occidental Petroleum Corp... 2.0%
Airtouch Communications, Inc. 3.1% Caremark International, Inc. 1.9%
At this place, the shareholder report contains a pie chart showing a portfolio
mix of 4.2% in short-term investments and 95.8% in common stocks.
*Capital Appreciation Stock Fund returns on the graph are from inception,
January 3, 1994. Average Annual Total Returns are for the most recent 1, 5,
and 10 years ending December 31, 1995.
**Lipper Performance Summary Average for Capital Appreciation Stock Funds
represents the average annual total return of all the underlying Capital
Appreciation Stock Funds in Lipper Analytical Services Variable Insurance
Products Performance Analysis Service.
***These returns are after all charges at the mutual fund level have been
subtracted. These returns are higher than the returns at the separate
account level because charges made at the separate account level have not
been subtracted. Capital Appreciation Stock Fund expenses, after
reimbursement, have been .65% annually, that is, approximately $65 for
$10,000 invested during the entire year. More detail on fund level charges
is shown in the Financial Highlights on page 38.
Figures for more than one year reflect a steady compounded rate. Actual returns
fluctuated year by year. Because principal value and investment return
fluctuate, there may be a gain or loss on withdrawal. Past performance is not
predictive of future results. This material must be preceded or accompanied by a
current prospectus. Current prospectuses are mailed to existing policyholders.
3
<PAGE>
Management's Discussion of 1995 Performance
Capital Appreciation Stock Fund
Investment Objective: Seeks a high level of long-term growth of capital by
investing in common stocks, including those of smaller companies and companies
undergoing significant change.
Management's Discussion: The year 1995 provided exceptional returns for
investors in U.S. stocks and bonds. The Capital Appreciation Stock Fund's
investment approach of staying invested in reasonably valued companies of
various sizes and in various economic sectors caused the Fund's return to lag
the more widely cited "big cap" market indexes. The Fund did, however, advance
in line with the broader market indexes and with funds of the same investment
objective:
USF Capital Appreciation Stock Fund 30.8%
Russell 2000 Index (Small capitalization stocks) 28.4%
Standard & Poor's 400 Index(Middle capitalization stocks) 32.4%
Russell 1000 Index(Large capitalization stocks) 37.8%
Standard & Poor's 500 Index(Large capitalization stocks) 37.5%
Lipper Average of Capital Appreciation Funds 31.5%
The Fund's short term investment holdings averaged approximately 7% of assets
during the year. This is a greater "cash" balance than we seek to maintain, and
reflects the heavy flow of new shareholder investments into the Fund throughout
the year. Because the stock markets advanced virtually without interruption all
year, the higher cash balance had the effect of reducing returns by
approximately 2.0% versus having these funds invested in stocks. At year end,
cash balances were 4.2% of Fund assets, a level more representative of the
"operating reserves" we intend to hold in the Fund. The other key operating
factors causing a difference between the Fund's return and that of the market
indexes were Fund expenses, which amounted to .65% of Fund assets in 1995, and
transaction costs. Market indexes are not actual investment funds and do not
bear either expenses or transaction costs.
The stocks in the Capital Appreciation Stock Fund provided a return for the year
of approximately 33.4%. This compares with the S&P 500 return of 37.4%. The
difference was due primarily to the following factors:
Smaller capitalization stocks underperformed larger capitalization stocks (as
indicated above by the Russell Indexes) by 9.4%. The Fund's portfolio is much
more heavily represented in smaller capitalization stocks than the S&P 500
index.
Small capitalization value stocks underperformed small capitalization growth
stocks during the year by 5.3%. The Fund typically employs a value orientation
to stock selection, based on the favorable long term return record of value over
growth.
Although the above size and style comparisons already capture many of the sector
and stock selection differences between the Fund and the S&P 500 Index, the 1995
performance lag can also be attributed to the Fund's underweighting in consumer
staples stocks (approximately 8% versus 12% in the S&P 500), and
underperformance of the Fund's utility and capital goods holdings. Partially
offsetting these factors were the Fund's slight outperformance and overweighting
in the energy sector, and its marked outperformance in technology (+52.2% versus
+37.5% for the S&P 500's tech stocks). This technology stock outperformance was
somewhat diminished by the Fund's underweighting in this sector (approximately
9.2% for the year versus 10.6% for the S&P 500).
The Capital Appreciation Stock Fund enters the new year with approximately
market weightings in most sectors, but an overweighting in healthcare (14.5%
versus 10.5% in the S&P 500), and underweightings in consumer staples (9.4%
versus 12.2%) and basic materials (4.1% versus 6.8%). These weightings reflect
the types of stocks we are finding that appear most attractive; we do not
attempt to make general judgements about the relative prospects of various broad
economic sectors nor of the various segments of the securities markets.
The performance in 1995 of financial assets like those in the Fund was far above
the long-term averages. One should not expect returns of these magnitudes in
1996. Nor, however, should investors abandon long-term asset accumulation
programs in expectation of a market setback. We see no reason to expect a
negative change in the long-term performance of stocks and bonds and, therefore,
see more risk to the long-term investor in "sitting on the sidelines" than in
"remaining in the game" by accumulating a diversified portfolio of quality,
reasonably priced securities like those we seek to provide in the Capital
Appreciation Stock Fund.
Charles R. Gibbons, CFA, CPA Lawrence R. Halverson, CFA
Senior Investment Officer Vice President
Century Investment Management Co. Century Investment Management Co.
4
<PAGE>
GROWTH AND INCOME STOCK FUND OF ULTRA SERIES FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
At this place, the shareholder report shows a graphic representation of how the
Growth and Income Stock fund compares to several indexes. $10,000 invested on
the inception date of January 3, 1985 would have the following value as of
December 31, 1995.
Growth and Income Stock Fund* $41,576
S&P 500 Stock Index 52,528
Lipper Average** 44,766
Consumer Price Index 14,559
-----------------------------------------------------------------------
Average Annual Total Return Through December 31, 1995
-----------------------------------------------------------------------
One Five Ten
Year Years Years
-------------------------------- ------------ ------------ ------------
Growth and Income Stock Fund*** 31.75% 15.51% 12.90%
S&P 500 Stock Index 37.53% 16.62% 13.30%
Lipper Average** 31.11% 15.77% 12.99%
Consumer Price Index 2.40% 2.76% 3.44%
-------------------------------- ------------ ------------ ------------
TEN LARGEST HOLDINGS (% of Portfolio)
AT&T Corporation........... 3.8% GTE Corp...................2.7%
WMX Technologies, Inc.......3.8% MCI Communications.........2.7%
Amoco Corporation.......... 3.3% Allstate Corporation.......2.6%
International Business Tyson Foods Inc., Class A..2.5%
Machines, Inc........... 3.3% General Motors Corporation.2.4%
Sara Lee Corp.............. 3.0%
At this place, the shareholder report contains a pie chart showing a portfolio
mix of 6.9% in short-term investments and 93.1% in common stocks.
*Growth and Income Stock Fund returns on the graph are from inception,
January 3, 1985. Average Annual Total Returns are for the most recent 1, 5,
and 10 years ending December 31, 1995.
**The Lipper Performance Summary Average for Growth and Income Stock Funds
represents the average annual total return of all the underlying Growth and
Income Stock Funds in Lipper Analytical Services Variable Insurance Products
Performance Analysis Service.
***These returns are after all charges at the mutual fund level have been
subtracted. These returns are higher than the returns at the separate
account level because charges made at the separate account level have not
been subtracted. Growth and Income Stock Fund expenses, after reimbursement,
have been .65% annually, that is, approximately $65 for $10,000 invested
during the entire year. More detail on fund level charges is shown in the
Financial Highlights on page 39.
Figures for more than one year reflect a steady compounded rate. Actual returns
fluctuated year by year. Because principal value and investment return
fluctuate, there may be a gain or loss on withdrawal. Past performance is not
predictive of future results. This material must be preceded or accompanied by a
current prospectus. Current prospectuses are mailed to existing policyholders.
5
<PAGE>
Management's Discussion of 1995 Performance
Growth and Income Stock Fund
Investment Objective: Seeks long-term growth of capital, with income as a
secondary consideration, by investing primarily in common stocks of companies
with financial and market strengths and long-term records of performance.
Management's Discussion: The year 1995 provided exceptional returns for
investors in U.S. stocks and bonds. The Growth and Income Stock Fund's
investment approach of staying invested in reasonably valued stocks of generally
larger companies in various economic sectors caused the Fund's return to lag the
more widely cited "big cap" market indexes. The Fund did, however, advance in
line with the broader market indexes and with funds of the same investment
objective:
USF Growth and Income Stock Fund 31.8%
Russell 2000 Index (Small capitalization stocks) 28.4%
Standard & Poor's 400 Index (Middle capitalization stocks) 32.4%
Russell 1000 Index (Large capitalization stocks) 37.8%
Standard & Poor's 500 Index (Large capitalization stocks) 37.5%
Lipper Average of Growth and Income Funds 31.1%
The Fund's short term investment holdings averaged approximately 8% of assets
during the year. This is a greater "cash" balance than we seek to maintain, and
was attributable to the heavy flow of new shareholder investments into the Fund
throughout the year. Because the stock market advanced virtually without
interruption all year, the higher cash balance had the effect of reducing
returns by approximately 2.4% versus having these funds invested in stocks. At
year end, cash balances were still 6.9% of Fund assets, but have since been
reduced further to a level more representative of the "operating reserves" we
intend to hold in the Fund. The other key operating factors causing a difference
between the Fund's return and that of the market indexes were Fund expenses,
which amounted to .65% of Fund assets in 1995, and transaction costs. Market
indexes are not actual investment funds and do not bear either expenses or
transaction costs.
The stocks in the Growth and Income Stock Fund provided a return for the year of
approximately 34.7%. This compares with the S&P 500 return of 37.4%. The
difference was due primarily to the following factors:
Smaller capitalization stocks underperformed larger capitalization stocks (as
indicated above by the Russell Indexes) by 9.4%. The Fund's portfolio is more
heavily represented in smaller capitalization stocks than the S&P 500 index.
Small capitalization value stocks underperformed small capitalization growth
stocks during the year by 5.3%. The Fund typically employs a value orientation
to stock selection, based on the favorable long term return record of value over
growth.
Although the above size and style comparisons already capture many of the
sector and stock selection differences between the Fund and the S&P 500 Index,
the 1995 performance lag can also be attributed to the Fund's underweighting in
technology stocks (approximately 6.5% versus 10.6% in the S&P 500), and
underperformance of the Fund's basic materials and capital goods holdings.
Partially offsetting these factors were the Fund's slight outperformance and
overweighting in utilities, and its overweighting in the strong performing
health care and financial services sectors.
The Growth and Income Stock Fund enters the new year with approximately market
weightings in most sectors, but overweightings in utilities (17.1% versus 12.7%
in the S&P 500) and energy (12.2% versus 9.5%), and underweightings in consumer
cyclicals (10.2% versus 13.6%), basic materials (4.2% versus 6.8%) and
technology (7.7% versus 9.8%). These weightings reflect the types of stocks we
are finding that appear most attractive; we do not attempt to make general
judgements about the relative prospects of various broad economic sectors nor of
the various segments of the securities markets. However, the "growth and income"
nature of this Fund typically leads to overweightings in yield-oriented stocks
(like utilities and financials) and underweightings in non-dividend paying
companies (like many of the technology companies).
The performance in 1995 of financial assets like those in the Fund was far above
the long-term averages. One should not expect returns of these magnitudes in
1996. Nor, however, should investors abandon long-term asset accumulation
programs in expectation of a market setback. We see no reason to expect a
negative change in the long-term performance of stocks and bonds and, therefore,
see more risk to the long-term investor in "sitting on the sidelines" than in
"remaining in the game" by accumulating a diversified portfolio of quality,
reasonably priced securities like those we seek to provide in the Growth and
Income Stock Fund.
Charles R. Gibbons, CFA, CPA Lawrence R. Halverson, CFA
Senior Investment Officer Vice President
Century Investment Management Co. Century Investment Management Co.
6
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
At this place, the shareholder report shows a graphic representation of how the
Balanced Fund compares to several indexes. $10,000 invested on the inception
date of January 3, 1985 would have the following value as of December 31, 1995.
Balanced Fund* $33,300
Synthetic Index** 35,871
Lipper Average*** 33,301
Consumer Price Index 14,559
------------------------------------------------------------------------
Average Annual Total Return Through December 31, 1995
------------------------------------------------------------------------
One Five Ten
Year Years Years
------------------------------- ------------ ------------- -------------
Balanced Fund**** 22.27% 11.23% 10.62%
Synthetic Index 23.53% 11.60% 11.33%
Lipper Average*** 24.60% 11.79% 10.20%
Consumer Price Index 2.40% 2.76% 3.44%
------------------------------- ------------ ------------- -------------
At this place, the shareholder report contains a pie chart showing a portfolio
mix of 9.7% in short-term investments, 10.6% in government and agency bonds,
33.9% in corporate bonds, and 45.8% in common stocks.
*Balanced Fund returns on the graph are from inception, January 3, 1985.
Average Annual Total Returns are for the most recent 1, 5, and 10 years
ending December 31, 1995.
**The Synthetic Index represents the average annual total returns of a
portfolio which was annually readjusted to 45% Standard and Poor's 500, 40%
Lehman Intermediate Government/Corporate Index, and 15% 90-Day Treasury
Bills.
***The Lipper Performance Summary Average for Balanced Funds represents the
average annual total return of all the underlying Balanced Funds in Lipper
Analytical Services Variable Insurance Products Performance Analysis
Service.
****These returns are after all charges at the mutual fund level have been
subtracted. These returns are higher than the returns at the separate
account level because charges made at the separate account level have not
been subtracted. Balanced Fund expenses, after reimbursement, have been
.65% annually, that is, approximately $65 for $10,000 invested during the
entire year. More detail on fund level charges is shown in the Financial
Highlights on page 40.
Figures for more than one year reflect a steady compounded rate. Actual returns
fluctuated year by year. Because principal value and investment return
fluctuate, there may be a gain or loss on withdrawal. Past performance is not
predictive of future results. This material must be preceded or accompanied by a
current prospectus. Current prospectuses are mailed to existing policyholders.
7
<PAGE>
Management's Discussion of 1995 Performance
Balanced Fund
Investment Objective: Seeks a high total return through the combination of
income and capital growth by investing in common stocks of the type owned in the
Growth and Income and Capital Appreciation Stock Funds, bonds of the type owned
in the Bond Fund and money market instruments of the type owned in the Money
Market Fund.
Management's Discussion: The year 1995 provided exceptional returns for
investors in U.S. stocks and bonds. The Balanced Fund's conservative investment
approach of staying invested in reasonably valued, higher quality stocks and
bonds allowed it to advance in line with the broader market indexes and with
similar funds:
USF Balanced Stock Fund 22.3%
Synthetic Index * 23.5%
Lipper Average of Balanced Funds 24.6%
* 45% Standard & Poor's 500, 40% Lehman Intermediate Government/Corporate Bond
Index and 15% 90-day U.S. Treasury bills.
The key operating factors causing a difference between the Balanced Fund's
return and that of the synthetic index were Fund expenses, which amounted to
.65% of Fund assets in 1995, and transaction costs. Market indexes are not
actual investment funds and do not bear either expenses or transaction costs.
The Fund's performance relative to the synthetic index was also negatively
impacted by the relative underperformance of the stocks (as described in the
preceding Management's Discussion of Performance of the Capital Appreciation and
Growth and Income Stock Funds), partially offset by the relative outperformance
of the bonds (as described in the following Management's Discussion of
Performance of the Bond Fund).
The performance in 1995 of financial assets like those in the Fund was far above
the long-term averages. One should not expect returns of these magnitudes in
1996. Nor, however, should investors abandon long-term asset accumulation
programs in expectation of a market setback. We see no reason to expect a
negative change in the long-term performance of stocks and bonds and, therefore,
see more risk to the long-term investor in "sitting on the sidelines" than in
"remaining in the game" by accumulating a diversified portfolio of quality,
reasonably priced securities like those we seek to provide in the Balanced Fund.
<TABLE>
<S> <C> <C>
Lawrence R. Halverson, CFA Charles R. Gibbons, CFA, CPA Joseph L. Gogola, CFA
Vice President Senior Investment Officer Senior Investment Officer
Century Investment Mgmt Co. Century Investment Mgmt Co. Century Investment Mgmt Co.
</TABLE>
8
<PAGE>
BOND FUND OF ULTRA SERIES FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
At this place, the shareholder report shows a graphic representation of how the
Bond Fund compares to several indexes. $10,000 invested on the inception date of
January 3, 1985 would have the following value as of December 31, 1995.
Bond Fund* $26,552
Lehman Brothers Intermediate
Government/Corporate Bond Index 27,487
Lipper Average** 24,086
Consumer Price Index 14,559
--------------------------------------------------------------------------
Average Annual Total Return Through December 31, 1995
-------------------------------- ------------- ------------- -------------
One Five Ten
Year Years Years
-------------------------------- ------------- ------------- -------------
Bond Fund*** 16.37% 8.44% 8.37%
Lehman Brothers Intermediate
Govt./Corporate Bond Index 15.31% 8.61% 8.81%
Lipper Average** 12.04% 7.19% 6.23%
Consumer Price Index 2.40% 2.76% 3.44%
-------------------------------- ------------- ------------- -------------
At this place, the shareholder report contains a pie chart showing a portfolio
mix of 3.4% in short-term investments, 18.0% in government and agency bonds, and
78.6% in corporate bonds.
*Bond Fund returns on the graph are from inception, January 3, 1985.
Average Annual Total Returns are for the most recent 1, 5, and 10 years
ending December 31, 1995.
**The Lipper Performance Summary average for Short/Intermediate Investment
Grade Funds represents the average annual total return of all the underlying
Short/Intermediate Investment Grade Funds in Lipper Analytical Services
Variable Insurance Products Performance Analysis Service.
***These returns are after all charges at the mutual fund level have been
subtracted. These returns are higher than the returns at the separate
account level because charges made at the separate account level have not
been subtracted. Bond Fund expenses, after reimbursement, have been .65%
annually, that is, approximately $65 for $10,000 invested during the entire
year. More detail on fund level charges is shown in the Financial Highlights
on page 41.
Figures for more than one year reflect a steady compounded rate. Actual returns
fluctuated year by year. Because principal value and investment return
fluctuate, there may be a gain or loss on withdrawal. Past performance is not
predictive of future results. This material must be preceded or accompanied by a
current prospectus. Current prospectuses are mailed to existing policyholders.
9
<PAGE>
Management's Discussion of 1995 Performance
Bond Fund
Investment Objective: Seeks a high level of current income, consistent with the
prudent limitation of investment risk, through investment in a diversified
portfolio of fixed income securities with maturities of up to 30 years. It
emphasizes intermediate-term securities.
Management's Discussion: The year 1995 provided exceptional returns for
investors in U.S. stocks and bonds. The Bond Fund's conservative investment
approach of staying invested in the more attractive sectors of the U.S. bond
market, concentrating on intermediate maturities, allowed the fund to fully
participate in the market advance as represented by market indexes and similar
funds:
USF Bond Fund 16.4%
Lehman Brothers Intermediate Government/Corporate Bond Index 15.3%
Lipper Average of Bond Funds 12.0%
The key operating factors causing a difference between the Bond Fund's return
and that of the index were Fund expenses, which amounted to .65% of Fund assets
in 1995, and transaction costs. Market indexes are not actual investment funds
and do not bear either expenses or transaction costs. Without operating expenses
and costs, the Fund's return would have exceeded the indexes by an even greater
amount.
The Fund's performance relative to the index was positively impacted by the
Fund's somewhat longer duration (4.0 versus 3.1 for the index) during a year of
markedly declining interest rates, and greater use of higher returning corporate
bonds versus U.S. Treasury and government agency securities (approximately 80%
versus 22%). These differences were retained through year end and position the
Fund well for continued declines or a stabilizing of interest rates. This
positioning also limits risk if the consensus expectations prove to be wrong and
interest rates rise in 1996.
The performance in 1995 of financial assets like those in the Fund was far above
the long-term averages. One should not expect returns of these magnitudes in
1996. Nor, however, should investors abandon long-term asset accumulation
programs in expectation of a market setback. We see no reason to expect a
negative change in the long-term performance of stocks and bonds and, therefore,
see more risk to the long-term investor in "sitting on the sidelines" than in
"remaining in the game" by accumulating a diversified portfolio of quality,
reasonably priced securities like those we seek to provide in the Bond Fund.
Joseph L. Gogola, CFA Lawrence R. Halverson, CFA
Senior Investment Officer Vice President
Century Investment Management Co. Century Investment Management Co.
10
<PAGE>
TREASURY 2000 FUND OF ULTRA SERIES FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
At this place, the shareholder report shows a graphic representation of how the
Treasury 2000 Fund compares to several indexes. $10,000 invested on the
inception date of July 28, 1988 would have the following value as of December
31, 1995.
Treasury 2000 Fund* $23,385
Lipper Average** 23,778
Lehman Brothers Intermediate
Treasury Bond Index 19,453
Consumer Price Index 13,289
--------------------------------------------------------------------------
Average Annual Total Return Through December 31, 1995
--------------------------------------------------------------------------
One Five Since
Year Years Inception of
Fund
---------------------------------- ---------- ----------- ----------------
Treasury 2000 Fund*** 20.98% 11.02% 11.99%
Lipper Average** 25.24% 12.06% 12.24%
Lehman Brothers Intermediate
Treasury Bond Index 14.42% 8.22% 9.28%
Consumer Price Index 2.40% 2.76% 3.27%
---------------------------------- ---------- ----------- ----------------
*Treasury 2000 Fund returns on the graph are from inception, July 28, 1988.
Average Annual Total Returns are for the most recent 1, 5, and 10 years
ending December 31, 1995.
**The Lipper Performance Summary Average for Target Maturity Funds represents
the average annual total return of all the underlying Target Maturity Funds
in Lipper Analytical Services Variable Insurance Products Performance
Analysis Service.
***These return are after all charges at the mutual fund level have been
subtracted. These returns are higher than the returns at the separate
account level because charges made at the separate account level have not
been subtracted. Treasury 2000 Fund expenses have been .45% annually, that
is, approximately $45 for $10,000 invested during the entire year.
Figures for more than one year reflect a steady compounded rate. Actual returns
fluctuated year by year. Because principal value and investment return
fluctuate, there may be a gain or loss on withdrawal. Past performance is not
predictive of future results. This material must be preceded or accompanied by a
current prospectus. Current prospectuses are mailed to existing policyholders.
11
<PAGE>
Management's Discussion of 1995 Performance
Treasury 2000 Fund
Investment Objective: Seeks safety of capital and a relatively predictable
payout upon Portfolio Maturity, primarily by investing in Stripped Treasury
Securities.
Management's Discussion: The year 1995 provided exceptional returns for
investors in U.S. stocks and bonds. The Treasury 2000 Fund's investment
approach of staying invested exclusively in U.S. Treasury Strips or similar
zero coupon securities with a maturity date of November 15, 2000, allowed the
Fund to advance strongly with the bond market and similar funds as interest
rates declined:
USF Treasury 2000 Fund 21.0%
Lehman Intermediate Treasury Bond Index 14.4%
Lipper Average of Target Maturity Funds 25.2%
The key operating factors causing a difference between the Treasury 2000 Fund's
return and that of the index were Fund expenses, which amounted to .45% of Fund
assets in 1995, and transaction costs. Market indexes are not actual investment
funds and do not bear either expenses or transaction costs. Without operating
expenses and costs, the Fund's return would have exceeded the indexes by an even
greater amount.
The Treasury 2000 Fund's 1995 performance relative to the index was positively
impacted by the Fund's somewhat longer duration (5.3 versus 3.1 for the index)
during a year of markedly declining interest rates. Similarly, the average
target maturity fund in the Lipper average has a longer duration than the Fund,
producing the higher return for this "peer group average" in 1995.
Between now and the November 15, 2000, maturity and distribution date, the
Fund's returns will reflect changes in market interest rate levels, but will be
primarily impacted by the appreciation of the Fund's investment securities to
their face value at maturity. A Fund share purchased on December 31, 1995, and
held to the November 15, 2000, maturity date would provide a yield to maturity
of 4.81%.
The performance in 1995 of financial assets like those in the Fund was far above
the long-term averages. One should not expect returns of these magnitudes in
1996. Nor, however, should investors abandon long-term asset accumulation
programs in expectation of a market setback. We see no reason to expect a
negative change in the long-term performance of stocks and bonds and, therefore,
see more risk to the long-term investor in "sitting on the sidelines" than in
"remaining in the game" by accumulating a diversified portfolio of quality,
reasonably priced securities like those we seek to provide in the Treasury 2000
Fund.
Joseph L. Gogola, CFA Lawrence R. Halverson, CFA
Senior Investment Officer Vice President
Century Investment Management Co. Century Investment Management Co.
12
<PAGE>
ULTRA SERIES FUND
Statement of Assets and Liabilities
December 31, 1995
<TABLE>
<CAPTION>
Capital Growth and Money Treasury
Appreciation Income Stock Balanced Bond Market 2000
Assets: Stock Fund Fund Fund Fund Fund Fund
---------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Investments in securities, at value,
(note 2) - see accompanying schedule
(cost $35,590,786) $39,009,539 $ -- $ -- $ -- $ -- $ --
(cost $90,819,574) -- 103,028,280 -- -- -- --
(cost $100,610,618) -- -- 109,598,168 -- -- --
(cost $ 12,942,480) -- -- -- 13,514,654 -- --
(cost $ 11,363,235) -- -- -- -- 11,363,235 --
(cost $ 1,273,222) -- -- -- -- -- 1,545,960
Receivable for securities sold -- 1,040,686 1,250,031 -- -- --
Receivable for shares purchased -- -- -- 3,577 -- --
Accrued interest receivable 8,895 6,902 786,313 213,376 19,156 --
Accrued dividends receivable 65,914 249,200 117,691 -- -- --
----------- ----------- ----------- ---------- ---------- ----------
Total assets 39,084,348 104,325,068 111,752,203 13,731,607 11,382,391 1,545,960
----------- ----------- ----------- ---------- ---------- ----------
Liabilities:
Payable for securities purchased 884,775 2,019,146 714,422 -- -- --
Payable for shares redeemed 63,684 116,754 12,772 -- 533 --
Dividends payable -- -- -- -- 1,557 --
Accrued expenses 18,557 51,006 56,051 6,839 6,172 633
----------- ----------- ----------- ---------- ---------- ----------
Total liabilities 967,016 2,186,906 783,245 6,839 8,262 633
----------- ----------- ----------- ---------- ---------- ----------
Net assets applicable to outstanding
capital stock 38,117,332 102,138,162 110,968,958 13,724,768 11,374,129 1,545,327
=========== =========== =========== ========== ========== ==========
Represented by:
Capital stock, par value $.01 $30,466 $56,111 $75,853 $12,913 $113,742 $1,825
Additional paid-in capital 34,661,052 89,702,836 101,688,742 13,135,332 11,260,387 1,270,764
Undistributed net investment income 7,061 10,991 23,449 4,349 -- --
Undistributed net realized gain (loss)
on investments -- 159,518 193,364 -- -- --
Unrealized appreciation (depreciation)
on investments 3,418,753 12,208,706 8,987,550 572,174 -- 272,738
----------- ----------- ----------- ---------- ---------- ----------
Total net assets - representing net assets
applicable to outstanding capital stock $38,117,332 $102,138,162 $110,968,958 $13,724,768 $11,374,129 $1,545,327
=========== =========== =========== ========== ========== ==========
Number of shares issued and outstanding
(note 5) 3,046,550 5,611,047 7,585,243 1,291,279 11,374,129 182,546
=========== =========== =========== ========== ========== ==========
Net asset value per share of outstanding
capital stock (note 2) $12.51 $18.20 $14.63 $10.63 $1.00 $8.47
=========== =========== =========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
CAPITAL APPRECIATION STOCK FUND OF ULTRA SERIES FUND
Investments in Securities
December 31, 1995
<TABLE>
<CAPTION>
CAPITAL APPRECIATION STOCK % Net Quality Annualized Maturity Par
FUND INVESTMENTS: Assets Rating* Yield Date Amount Value
------ ------- ----- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Short-Term Investments:
Commercial Paper/Savings: 6.9%
Chase Manhattan - Cash Account 4.82% $2,628,157 $2,628,157
---------
TOTAL SHORT-TERM INVESTMENTS $2,628,157
---------
% Net
Long-Term Investments: Assets Shares Value
Common Stocks: 95.4%
Forest Products/Paper: 1.4%
Champion International Corp. 12,550 527,100
--------
Insurance: 3.5%
Allstate Corporation 15,602 641,632
Prudential Reinsurance Holdings, Inc. 28,800 673,200
--------
Insurance total 1,314,832
--------
Investment Banking/Brokerage: 3.9%
Dean Witter Discover & Company 10,400 488,800
Morgan Stanley Group, Inc. 4,700 378,938
Salomon Inc. 17,400 617,700
--------
Investment Banking/Brokerage total 1,485,438
--------
Banks: 2.1%
Bankers Trust New York Corp. 7,700 512,050
Citicorp, Inc. 4,500 302,625
--------
Banks total 814,675
--------
Finance Companies: 0.5%
Credit Acceptance Corp.*** 10,000 207,500
--------
Drugs/Health Care: 11.2%
American Home Products Corp. 2,600 252,200
Bristol-Meyers Squibb Co. 2,500 214,687
Caremark International, Inc. 40,000 725,000
Centocor Inc.*** 14,000 432,250
Glaxo Wellcome - ADR 25,500 720,375
Perrigo Company*** 37,000 439,375
Pharmacia & Upjohn, Inc. 31,820 1,233,025
Smithkline Beecham - ADR 4,300 238,650
--------
Drugs/Health Care total 4,255,562
--------
Cosmetics/Personal Care: 0.3%
Estee Lauder Companies - Class A 3,300 115,087
---------
</TABLE>
14
<PAGE>
CAPITAL APPRECIATION STOCK FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
CAPITAL APPRECIATION STOCK % Net
FUND INVESTMENTS, CONTINUED: Assets Shares Value
<S> <C> <C> <C>
Hospital Management/Supplies: 0.7%
Healthsouth Corp.*** 9,600 $279,600
--------
Nursing Home Management: 0.5%
ARV Assisted Living*** 16,000 188,000
--------
Retail-Department: 0.5%
Carson Pirie Scott*** 9,300 184,837
--------
Retail-Discount: 1.8%
Price/Costco, Inc.*** 45,900 699,975
--------
Retail-Specialty: 0.3%
Baker (J.), Inc. 21,550 123,912
--------
Real Estate: 0.7%
Town & Country Trust 21,500 279,500
--------
Leisure Time: 1.2%
Johnson Worldwide Associates, Inc.
Class A*** 19,600 441,000
--------
Media: 0.8%
Emmis Broadcasting Corp. - Class A*** 9,500 294,500
--------
Publishing/Printing: 1.1%
K-III Communications, Inc.*** 33,700 408,612
--------
Foods - Products & Service: 5.3%
Brothers Gourmet Coffee, Inc.*** 27,700 100,412
Hudson Foods, Inc. 14,700 253,575
Nabisco Holdings Corp, - Class A 11,600 378,450
Sara Lee Corp. 20,000 637,500
Tyson Foods, Inc. - Class A 25,000 653,125
--------
Foods - Products & Service total 2,023,062
--------
Auto-Related: 5.9%
Bandag Inc. 3,000 162,375
Bandag Inc. - Class A 11,800 625,400
General Motors Corporation 16,100 851,288
Jason, Inc.*** 37,000 240,500
Strattec Security Corp.*** 21,600 383,400
--------
Auto-Related total 2,262,963
--------
Home Furnishings: 3.5%
Congoleum Corporation*** 20,800 223,600
Department 56, Inc.*** 18,200 698,425
Triangle Pacific Inc.*** 24,200 414,425
--------
Home Furnishings total 1,336,450
--------
</TABLE>
15
<PAGE>
CAPITAL APPRECIATION STOCK FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
CAPITAL APPRECIATION STOCK % Net
FUND INVESTMENTS, CONTINUED: Assets Shares Value
<S> <C> <C> <C>
Apparel/Textile: 1.2%
Authentic Fitness 7,700 $159,775
Farah, Inc.*** 6,000 28,500
Kellwood Co. 13,500 275,063
--------
Apparel/Textile total 463,338
--------
Air Transport: 0.4%
Midwest Express Holdings*** 5,700 158,175
--------
Office Equipment/Computers: 7.5%
Amdahl Corp.*** 36,700 311,950
EMC Corp.*** 29,900 459,712
International Business Machines Corp. 5,750 527,563
Seagate Technology, Inc.*** 3,700 175,750
Wang Laboratories, Inc.*** 83,100 1,381,538
--------
Office Equipment/Computers total 2,856,513
--------
Electronics: 0.7%
Texas Instruments, Inc. 5,000 258,750
--------
Aerospace/Defense: 0.7%
Boeing Co. 3,600 282,150
--------
Electrical Equipment: 1.6%
BWIP Holding, Inc. 30,000 495,000
Stewart & Stevenson Services, Inc. 5,000 126,250
--------
Electrical Equipment total 621,250
--------
Pollution Control: 3.2%
WMX Technologies, Inc. 40,800 1,218,900
--------
Oil/Oil Service: 9.2%
Ashland, Inc. 7,850 275,731
Occidental Petroleum Corp. 35,700 763,088
Phillips Petroleum Co. 12,550 428,268
Ranger Oil, Ltd. 52,500 328,125
Santa Fe Energy Resources*** 43,100 414,838
Schlumberger, Ltd. 6,200 429,350
Unocal Corp. 8,400 244,650
USX-Marathon Group 23,200 452,400
Western Atlas*** 3,700 186,850
--------
Oil/Oil Service total 3,523,300
--------
Natural Gas-Diversified: 1.7%
Belden & Blake Corp.*** 36,600 640,500
--------
Containers: 3.2%
Owens Illinois, Inc.*** 84,800 1,229,600
--------
</TABLE>
16
<PAGE>
CAPITAL APPRECIATION STOCK FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
CAPITAL APPRECIATION STOCK % Net
FUND INVESTMENTS, CONTINUED: Assets Shares Value
<S> <C> <C> <C>
Chemicals: 2.0%
Dow Chemical Company 8,300 $584,113
Hanna Company (M. A.) 5,900 165,200
--------
Chemicals total 749,313
--------
Specialty Chemicals: 0.6%
Praxair Inc. 6,400 215,200
--------
Transportation: 2.1%
Delta Air Lines, Inc. 4,900 361,988
Hunt (JB) Transport Services, Inc. 26,300 440,525
--------
Transportation total 802,513
--------
Telecommunications: 3.0%
MCI Communications 44,000 1,149,500
--------
Utilities-Telephone: 8.1%
Airtouch Communications, Inc.*** 41,800 1,180,850
Ameritech Corporation 4,900 289,100
AT&T Corporation 15,200 984,200
GTE Corporation 7,700 338,800
NYNEX Corporation 2,000 108,000
SBC Communications, Inc. 3,000 172,500
--------
Utilities-Telephone total 3,073,450
--------
Utilities-Electric: 1.2%
Pacific Gas & Electric Company 16,000 454,000
--------
Diversified Companies: 1.3%
Rockwell International Corporation 9,600 507,600
--------
Miscellaneous: 2.5%
BDM International, Inc.*** 12,700 368,300
Interim Services, Inc.*** 16,300 566,425
--------
Miscellaneous total 934,725
--------
TOTAL COMMON STOCKS
(COST: $32,962,629) $36,381,382
----------
TOTAL INVESTMENTS, CAPITAL APPRECIATION
STOCK FUND (COST: $35,590,786)** $39,009,539
==========
See accompanying notes to investments in securities.
<FN>
*Moody's/Standard & Poors' quality ratings. See the current Prospectus and Statement of Additional Information for a complete
description of these ratings.
**At December 31, 1995, the cost of securities for federal income tax purposes was $35,590,786. The aggregate unrealized
appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation...............................$4,289,812
Gross unrealized depreciation............................... (871,059)
---------
Net unrealized appreciation.................................$3,418,753
=========
***This Security is not income producing.
</FN>
</TABLE>
17
<PAGE>
GROWTH AND INCOME STOCK FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
GROWTH AND INCOME STOCK % Net Quality Annualized Maturity Par
FUND INVESTMENTS: Assets Rating* Yield Date Amount Value
------ ------- ----- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Short-Term Investments:
Commercial Paper/Savings: 7.8%
American Express Credit A-1/P-1 5.82% Jan 09, 1996 $1,000,000 $997,308
Coca Cola Co. A-1+/P-1 5.68% Jan 30, 1996 1,000,000 995,212
Chevron Oil Finance Company A-1+/P-1 5.76% Jan 16, 1996 500,000 498,666
Ford Motor Credit Company A-1/P-1 5.89% Jan 11, 1996 500,000 499,033
General Electric Capital Corporation A-1+/P-1 5.72% Jan 16, 1996 500,000 498,662
Interstate Power Company A-1/P-1 5.72% Feb 09, 1996 900,000 894,260
John Deere Capital Corp. A-1/P-1 5.63% Feb 06, 1996 1,000,000 994,194
Merrill Lynch Capital Market A-1+/P-1 5.79% Feb 08, 1996 1,000,000 996,650
Texaco Group, Inc. A-1/P-1 5.73% Jan 23, 1996 500,000 498,123
Chase Manhattan - Cash Account 4.82% 1,098,937 1,098,937
--------
TOTAL COMMERCIAL PAPER/
SAVINGS, AT COST $7,971,045
---------
<CAPTION>
% Net
Long-Term Investments: Assets Shares Value
<S> <C>
Common Stocks: 93.1%
Forest Products/Paper: 1.6%
Champion International Corp. 25,600 1,075,200
International Paper Company 13,500 511,313
--------
Forest Products/Paper total 1,586,513
--------
Insurance: 4.9%
Allstate Corporation 64,919 2,669,793
Prudential Reinsurance Holdings, Inc. 60,000 1,402,500
St. Paul Companies 16,700 928,938
--------
Insurance total 5,001,231
--------
Banks: 2.0%
Bankers Trust New York Corp. 12,000 798,000
Citicorp, Inc. 18,500 1,244,125
--------
Banks total 2,042,125
--------
Investment Banking/Brokerage: 3.9%
Dean Witter Discover & Company 36,400 1,710,800
Morgan Stanley Group, Inc. 12,600 1,015,875
Salomon Inc. 35,000 1,242,500
--------
Investment Banking/Brokerage total 3,969,175
</TABLE>
18
<PAGE>
GROWTH AND INCOME STOCK FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
GROWTH AND INCOME STOCK % Net
FUND INVESTMENTS, CONTINUED: Assets Shares Value
<S> <C> <C> <C>
Drugs/Health Care: 7.8%
American Home Products Corp. 9,600 $931,200
Bristol-Meyers Squibb Co. 17,000 1,459,875
Caremark International, Inc. 52,800 957,000
Glaxo Wellcome - ADR 47,000 1,327,750
Pharmacia & Upjohn, Inc. 54,865 2,126,019
Smithkline Beecham - ADR 20,700 1,148,850
--------
Drugs/Health Care total 7,950,694
--------
Hospital Management/Supplies: 2.0%
Columbia HCA Healthcare Corp. 40,671 2,064,053
--------
Retail - Department: 0.9%
Sears Roebuck & Co. 24,400 951,600
--------
Retail - Discount: 2.2%
Price/Costco, Inc.*** 62,200 948,550
Wal-Mart Stores 61,700 1,380,538
--------
Retail - Discount total 2,329,088
--------
Retail - Drug: 0.9%
Revco D. S., Inc.*** 33,100 935,075
--------
Retail - Specialty: 0.2%
Baker (J.), Inc. 46,500 267,375
--------
Cosmetics/Personal Care: 1.4%
Estee Lauder Companies - Class A 8,500 296,438
Unilever, NV 8,000 1,126,000
--------
Cosmetics/Personal Care total 1,422,438
--------
Real Estate: 1.5%
Highwoods Properties, Inc. 23,300 658,225
Town & Country Trust 63,900 830,700
--------
Real Estate total 1,488,925
--------
Printing/Publishing: 1.0%
Readers Digest Assn., Inc. - Class A 20,300 1,040,375
--------
Foods - Products & Service: 7.1%
Nabisco Holdings Corp. - Class A 54,000 1,761,750
Sara Lee Corp. 94,600 3,015,375
Tyson Foods Inc., Class A 97,100 2,536,738
--------
Foods - Products & Service total 7,313,863
--------
</TABLE>
19
<PAGE>
GROWTH AND INCOME STOCK FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
GROWTH AND INCOME STOCK % Net
FUND INVESTMENTS, CONTINUED: Assets Shares Value
------ ------ -----
<S> <C> <C> <C>
Beverage/Confect/Tobacco: 1.3%
Pepsico, Inc. 23,750 $1,327,031
--------
Auto-Related: 4.1%
Bandag, Inc. 29,000 1,537,000
Bandag, Inc. - Class A 3,500 189,437
General Motors Corporation 46,500 2,458,687
--------
Auto-Related total 4,185,124
--------
Apparel/Textile: 1.0%
Kellwood Co. 47,650 970,868
--------
Office Equipment/Computers: 4.5%
Amdahl Corp.*** 63,600 540,600
EMC Corp.*** 44,500 684,187
International Business Machines Corp. 36,650 3,362,638
--------
Office Equipment/Computers total 4,587,425
--------
Electronics: 2.7%
Motorola, Inc. 13,300 758,100
Texas Instruments, Inc. 15,300 791,775
Zero Corporation 65,100 1,155,525
--------
Electronics total 2,705,400
--------
Telecommunications: 2.7%
MCI Communications, Inc. 103,900 2,714,387
--------
Electrical Equipment: 1.7%
BWIP Holding, Inc. 45,100 744,150
Grainger, (WW) Inc. 15,000 993,750
--------
Electrical Equipment total 1,737,900
--------
Pollution Control: 3.8%
WMX Technologies, Inc. 128,700 3,844,913
--------
Oil/Oil Service: 11.3%
Amerada Hess Corporation 14,100 747,300
Amoco Corporation 47,300 3,399,687
Exxon Corp. 13,800 1,105,725
Occidental Petroleum Corp. 65,800 1,406,475
Phillips Petroleum Co. 49,100 1,675,538
Schlumberger, Ltd. 15,750 1,090,688
Unocal Corp. 23,300 678,612
USX-Marathon Group 47,000 916,500
Vastar Resources 16,000 508,000
--------
Oil/Oil Service total 11,528,525
--------
</TABLE>
20
<PAGE>
GROWTH AND INCOME STOCK FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
GROWTH AND INCOME STOCK % Net
FUND INVESTMENTS, CONTINUED: Assets Shares Value
------ ------ -----
<S> <C> <C> <C>
Containers: 1.2%
Owens-Illinois, Inc.*** 87,000 1,261,500
--------
Chemicals: 1.7%
Dow Chemical Company 18,100 1,273,788
Hanna Company (M.A.) 16,700 467,600
--------
Chemicals total 1,741,388
--------
Specialty Chemicals: 0.7%
Praxair Inc. 20,700 696,038
--------
Transportation: 1.6%
Delta Air Lines, Inc. 14,200 1,049,025
Hunt (JB) Transport Services, Inc. 35,200 589,600
--------
Transportation total 1,638,625
--------
Utilities-Telephone: 10.1%
Ameritech Corporation 31,500 1,858,500
AT&T Corp. 59,200 3,833,200
GTE Corp. 62,200 2,736,800
NYNEX Corp. 17,300 934,200
SBC Communications, Inc. 17,000 977,500
--------
Utilities-Telephone total 10,340,200
---------
Utilities-Electric: 3.2%
Duke Power Company 27,900 1,321,762
Pacific Gas & Electric Company 69,500 1,972,063
--------
Utilities-Electric total 3,293,825
Diversified Companies: 4.0%
Alexander & Baldwin, Inc. 45,800 1,053,400
Rockwell International Corp. 42,400 2,241,900
Tenneco, Inc. 16,650 826,256
--------
Diversified Companies total 4,121,556
--------
TOTAL COMMON STOCKS
(COST: $82,848,528) $95,057,235
----------
TOTAL INVESTMENTS, GROWTH AND
INCOME STOCK FUND (COST: $90,819,574)** $103,028,280
See accompanying notes to investments in securities.
<FN>
*Moody's/Standard & Poors' quality ratings. See the current Prospectus and Statement of Additional Information for a complete
description of these ratings.
**At December 31, 1995, the cost of securities for federal income tax purposes was $90,819,574. The aggregate unrealized
appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation............................ $14,374,580
Gross unrealized depreciation............................ (2,165,874)
----------
Net unrealized appreciation.............................. $12,208,706
==========
***This Security is not income producing.
</FN>
</TABLE>
21
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
% Net Quality Annualized Maturity Par
BALANCED FUND INVESTMENTS: Assets Rating* Yield Date Amount Value
------ ------- ----- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Short-Term Investments:
Commercial Paper/Savings: 9.0%
American Express Credit Corporation A-1/P-1 5.81% Jan 09, 1996 $1,000,000 $998,417
Coca-Cola Co. A-1/P-1 5.68% Jan 30, 1996 1,000,000 995,212
Chevron Oil Finance Company A-1+/P-1 5.76% Jan 16, 1996 1,000,000 997,332
Ford Motor Credit Company A-1/P-1 5.72% Jan 31, 1996 1,000,000 995,013
General Electric Capital Corporation A-1+/P-1 5.78% Jan 26, 1996 700,000 697,018
John Deere Capital Corp. A-1/P-1 5.63% Jan 06, 1996 1,000,000 994,194
Merrill Lynch Capital Markets A-1+/P-1 5.88% Jan 02, 1996 2,000,000 1,995,208
Pepsico, Inc. A-1/P-1 5.66% Feb 09, 1996 500,000 496,840
Chase Manhattan - Cash Account 4.82% 1,762,495 1,762,495
---------
TOTAL COMMERCIAL PAPER
SAVINGS, AT COST $9,931,729
---------
<CAPTION>
% Net Quality Coupon Maturity Par
Long-Term Investments: Assets Rating* Rate Date Amount Value
------ ------- ---- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Government Guaranteed - U.S.: 9.2%
U.S. Treasury Notes AAA 8.500 Feb 15, 2000 500,000 557,500
U.S. Treasury Notes AAA 7.875 Nov 15, 1999 500,000 543,593
U.S. Treasury Notes AAA 7.125 Oct 15, 1998 1,000,000 1,047,813
U.S. Treasury Notes AAA 7.500 Nov 15, 2001 1,000,000 1,102,187
U.S. Treasury Notes AAA 6.250 Jan 31, 1997 500,000 505,468
U.S. Treasury Notes AAA 7.875 Apr 15, 1998 1,000,000 1,056,250
U.S. Treasury Notes AAA 5.500 Jul 31, 1997 500,000 502,343
U.S. Treasury Notes AAA 5.750 Oct 31, 1997 500,000 504,843
U.S. Treasury Notes AAA 5.500 Sep 30, 1997 500,000 502,500
U.S. Treasury Notes AAA 5.500 Apr 15, 2000 500,000 503,750
U.S. Treasury Notes AAA 7.125 Sep 30, 1999 1,000,000 1,060,000
U.S. Treasury Notes AAA 5.875 Feb 15, 2004 850,000 867,265
U.S. Treasury Notes AAA 7.375 May 15, 1996 750,000 755,860
U.S. Treasury Notes AAA 8.500 May 15, 1997 700,000 730,188
----------
TOTAL GOVERNMENT GUARANTEED- U.S.
(COST: $9,807,051) $10,239,560
----------
Quasi-Government/Government Sponsored: 1.3%
Federal Home Loan Bank AAA 4.400 Jan 21, 1997 500,000 495,642
Federal Home Loan Bank AAA 5.440 Oct 15, 2003 620,000 604,222
Federal Home Loan Bank AAA 6.440 Jan 28, 2000 250,000 257,906
FNMA Pass Through Cert. AAA 8.000 Feb 01, 2002 128,608 133,150
---------
TOTAL QUASI-GOVERNMENT/GOVERNMENT
SPONSORED (COST: $1,455,284) $1,490,920
---------
Nonconvertible Corporate Bonds: 33.6%
Building Materials: 0.2%
Stanley Works A-2/A 7.375 Dec 15, 2002 250,000 268,372
--------
</TABLE>
22
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BALANCED FUND INVESTMENTS, % Net Quality Coupon Maturity Par
CONTINUED: Assets Rating* Rate Date Amount Value
------ ------- ---- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Drug/Health Care: 2.2%
Abbott Laboratories, Inc. AA-1/AAA 5.600 Oct 01, 2003 $300,000 $295,700
Abbott Laboratories, Inc. AA-1/AAA 6.800 May 15, 2005 500,000 532,147
American Home Products, Corp. A-2/A- 7.700 Feb 15, 2000 500,000 535,761
Bergen Brunswig BAA-1/A- 7.250 Jun 01, 2005 500,000 527,999
Upjohn Company A-1/AA- 5.875 Apr 15, 2000 500,000 502,335
--------
Drug/Health Care total 2,393,942
--------
Electronics: 1.0%
Raytheon Co. A-1/A+ 6.500 Jul 15, 2005 500,000 516,164
Texas Instruments, Inc. A-3/A 9.000 Mar 15, 2001 500,000 565,905
--------
Electronics total 1,082,069
--------
Forest Products/Paper: 2.0%
Champion International Corp. BAA-1/BBB 9.875 Jun 01, 2000 250,000 287,870
Champion International Corp. BAA-1/BBB 7.100 Sep 01, 2005 550,000 577,625
International Paper A-3/A- 7.875 Aug 01, 2006 500,000 561,664
Kimberly Clark Corp. AA-2/AA 9.000 Aug 01, 2000 750,000 846,514
--------
Forest Products/Paper total 2,273,673
--------
Hospital Supplies: 0.2%
Baxter International, Inc. A-3/A- 7.625 Nov 15, 2002 250,000 270,701
--------
Insurance/Casualty: 0.9%
Aetna Life & Casualty A-2/A- 6.375 Aug 15, 2003 500,000 500,695
Lincoln National Corp. A-2/A 7.250 May 15, 2005 500,000 529,660
--------
Insurance/Casualty total 1,030,355
--------
Investment Banking/Brokerage: 1.0%
Dean Witter Discover & Company A-2/A 6.250 Mar 15, 2000 200,000 202,986
Donaldson, Lufkin Jenrette, Inc. BAA-1/A- 6.875 Nov 11, 2005 300,000 307,407
Salomon Inc. BAA-1/BBB 6.700 Dec 01, 1998 650,000 653,948
--------
Investment Banking/Brokerage total 1,164,341
--------
Finance Co. - Consumer Loan: 2.0%
American General Finance A-1/A+ 7.125 Feb 01, 1999 500,000 522,765
American General Finance A-1/A+ 7.250 May 15, 2005 650,000 696,456
Household Finance Co. A-2/A 7.125 Sep 01,2005 500,000 531,215
Norwest Financial Inc. AA-3/AA- 7.875 Feb 15, 2002 500,000 548,798
--------
Finance Co. - Consumer Loan total 2,299,234
--------
Cosmetics/Personal Care: 0.7%
Gillette Co. AA-3/AA- 5.75 Oct 15, 2005 300,000 293,572
Procter & Gamble AA-2/AA 6.85 Jun 01, 1997 500,000 510,186
--------
Cosmetics/Personal Care total 803,758
--------
</TABLE>
23
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BALANCED FUND INVESTMENTS, % Net Quality Coupon Maturity Par
CONTINUED: Assets Rating* Rate Date Amount Value
------ ------- ---- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Media: 0.3%
McGraw-Hill, Inc. A-1 9.430 Sep 01, 2000 $250,000 $287,195
--------
Publishing-News: 0.9%
Gannett Co. AA-2/A+ 5.850 May 01, 2000 500,000 501,802
Knight Ridder, Inc. A-1/AA- 8.500 Sep 01, 2001 500,000 541,813
--------
Publishing-News total 1,043,615
--------
Retail-Department: 1.6%
Dayton Hudson Corp. A-3/BBB+ 9.750 Nov 01, 1998 500,000 550,380
J. C. Penney Co. A-1/A+ 6.875 Jun 15, 1999 500,000 517,697
Wal-Mart Stores, Inc. AA-1/AA 5.875 Oct 15, 2005 750,000 738,659
--------
Retail-Department total 1,806,736
--------
Foods-Products & Services: 0.9%
Archer Daniels Midland AA-2/AA- 6.250 May 15, 2003 500,000 508,412
H.J. Heinz Company A-1/A+ 5.500 Sep 15, 1997 250,000 250,357
Supervalu Inc. A-3/BBB+ 7.800 Nov 15, 2002 250,000 274,104
--------
Foods-Products & Services total 1,032,873
--------
Beverage/Confect/Tobacco: 0.7%
Coca-Cola Co. AA-3/AA 6.000 Jul 15, 2003 500,000 502,725
Pepsico Inc. A-1/A 6.125 Jan 15, 1998 250,000 253,495
--------
Beverage/Confect/Tobacco total 756,220
--------
Auto-Related: 0.8%
Ford Motor Company A-1/A+ 7.500 Nov 15, 1999 500,000 528,138
General Motors Corporation A-3/A- 7.000 Jun 15, 2003 300,000 313,031
--------
Auto-Related total 841,169
--------
Electrical Equipment: 0.4%
Emerson Electric Co. AA-1/AA+ 6.300 Nov 01, 2005 500,000 514,202
--------
Electric Household Appliances: 0.3%
Maytag Corporation BAA-1/BBB+ 9.750 May 15, 2002 250,000 298,494
--------
Finance-Diversified: 0.9%
Dow Capital B.V. A-1/A 7.125 Jan 15, 2003 250,000 256,930
Dow Capital B.V. A-1/A 7.375 Jul 15, 2002 250,000 260,493
John Deere Capital A-2/A 4.625 Sep 02, 1996 500,000 497,069
--------
Finance-Diversified total 1,014,492
--------
Engineering/Construction Services: 0.6%
Foster Wheeler Corp. BAA-2/BBB 6.750 Nov 15, 2005 600,000 614,311
--------
</TABLE>
24
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BALANCED FUND INVESTMENTS, % Net Quality Coupon Maturity Par
CONTINUED: Assets Rating* Rate Date Amount Value
------ ------- ---- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Machine Tools: 0.5%
Giddings & Lewis BA1/BBB 7.500 Oct 01, 2005 $500,000 $523,845
--------
Office Equipment/Computers: 0.8%
International Business Machines A-1/A 6.375 Jun 15, 2000 500,000 510,000
Xerox Corporation A-2/A 7.150 Aug 01, 2004 300,000 319,217
--------
Office Equipment/Computers total 829,217
--------
Telecommunications: 0.5%
Cox Communications BAA-2/A- 6.875 Jun 15, 2005 500,000 519,856
--------
Oil/Oil Service: 2.3%
Enron Corp. BAA-2/BBB+ 7.625 Sep 10, 2004 500,000 545,923
Mobil Corporation AA-2/AA 8.375 Feb 12, 2001 500,000 551,875
Shell Oil Company AA-2/AAA 6.625 Jul 01, 1999 300,000 310,064
Shell Canada, Ltd. A-1/AA 8.875 Jan 14, 2001 500,000 567,130
Union Oil California BAA-2/BBB 6.250 May 15, 2005 500,000 530,748
--------
Oil/Oil Service total 2,505,740
--------
Pollution Control: 0.3%
WMX Technologies, Inc. A-1/AA- 7.700 Oct 01, 2002 350,000 382,371
--------
Chemicals: 0.9%
Monsanto Co. A-1/A 6.000 Jul 01, 2000 500,000 503,401
PPG Industries, Inc. A-1/A 6.875 Aug 01, 2005 500,000 529,777
--------
Chemicals total 1,033,178
--------
Specialty Chemicals: 0.5%
Praxair, Inc. A-3/BBB+ 6.850 Jun 15, 2005 500,000 519,697
--------
Transportation: 0.9%
Burlington Northern Inc. BAA-2/BBB 7.400 May 15, 1999 500,000 522,656
Union Pacific Co. A-3/A- 6.250 Mar 15, 1999 500,000 506,566
--------
Transportation total 1,029,222
--------
Aerospace/Defense: 0.5%
Rockwell International Corp. AA-3/AA- 7.625 Feb 17, 1998 500,000 522,058
--------
Utilities-Natural Gas Distribution: 1.8%
Consolidated Natural Gas Co. A-1/AA- 5.750 Aug 01, 2003 500,000 492,623
Laclede Gas Co. AA-3/AA- 6.250 May 01, 2003 700,000 709,722
Northern Illinois Gas Co. AA-1/AA 5.500 Feb 01, 1997 250,000 250,082
Southern California Gas A2\AA- 5.250 Mar 01, 1998 500,000 496,178
--------
Utilities-Natural Gas Dist total: 1,948,605
--------
</TABLE>
25
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BALANCED FUND INVESTMENTS, % Net Quality Coupon Maturity Par
CONTINUED: Assets Rating* Rate Date Amount Value
------ ------- ---- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Utilities-Telephone: 3.9%
Alltel Corporation A2/A+ 7.250 Apr 01, 2004 $500,000 $535,315
American Telephone & Telegraph Corp. AA-3/AA 6.750 Apr 01, 2004 500,000 524,732
Bell South Telecommunications, Inc. AAA/AAA 6.500 Feb 01, 2000 250,000 257,052
Bell South Telecommunications, Inc. AAA/AAA 6.500 Jun 15, 2005 350,000 363,027
Bell Tel of Penn AA-1/AA 6.125 Mar 15, 2003 500,000 504,814
GTE-California AA-3/AA- 6.250 Jan 15, 1998 250,000 253,465
GTE Corporation BAA-1/BBB+ 9.100 Jun 01, 2003 500,000 578,928
New England Telephone & Telegraph AA-2/AA- 4.625 Jul 01, 2005 572,000 509,408
New York Telephone A-2/A 6.500 Mar 01, 2005 500,000 511,546
Northwestern Bell Telephone Co. AA-3/AA- 9.500 May 01, 2000 250,000 284,308
--------
Utilities-Telephone total 4,322,595
--------
Utilities-Electric: 2.5%
Central Power & Light, Inc. A-2/A 6.000 Oct 01, 1997 250,000 251,394
Consolidated Edison of New York, Inc. A-1/A+ 6.250 Apr 01, 1998 300,000 303,754
Florida Power Corp. AA-3/AA- 6.000 Jul 01, 2003 400,000 397,588
Gulf Power Co. A-1/A+ 5.550 Apr 01, 1998 250,000 249,614
Midwest Power Systems A-2/A+ 7.125 Feb 01, 2003 250,000 263,715
Pacific Gas & Electric Co. A-2/A 6.250 Aug 01, 2003 300,000 298,560
Pacificorp A-2/A 6.750 Apr 01, 2005 500,000 514,410
Wisconsin Public Service, Inc. AA-2/AA+ 7.300 Oct 01, 2002 500,000 530,471
--------
Utilities-Electric total 2,809,506
--------
Utilities-Natural Gas Pipeline: 0.3%
Burlington Resources Inc. A-3/A- 9.625 Jun 15, 2000 250,000 286,116
--------
Miscellaneous: 0.3%
Chrysler Buildings of New York A-1/A+ 9.125 May 01, 1999 250,000 273,040
--------
TOTAL NONCONVERTIBLE CORPORATE
BONDS (COST: $35,443,997) $37,300,798
----------
% Net
Assets Shares Value
Common Stocks: 45.7%
Forest Products/Paper: 0.8%
Champion International Corp. 14,800 621,600
International Paper Company 7,700 291,638
--------
Forest Products/Paper total 913,238
--------
Insurance: 1.8%
Allstate Corporation 30,857 1,268,994
Prudential Reinsurance Holdings, Inc 30,000 701,250
--------
Insurance total 1,970,244
--------
</TABLE>
26
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BALANCED FUND INVESTMENTS, % Net
CONTINUED: Assets Shares Value
------ ------ -----
<S> <C> <C> <C>
Banks: 1.0%
Bankers Trust New York Corp. 6,500 $432,250
Citicorp, Inc. 10,300 692,675
--------
Banks total 1,124,925
--------
Investment Banking/Brokerage: 1.6%
Dean Witter Discover & Company 14,700 690,900
Morgan Stanley Group, Inc. 6,000 483,750
Salomon Inc. 17,200 610,600
--------
Investment Banking/Brokerage total 1,785,250
--------
Finance Companies: 0.2%
Credit Acceptance Corp.*** 8,300 172,225
--------
Drugs/Health Care: 3.9%
American Home Products Corp. 5,100 494,700
Bristol-Meyers Squibb Co. 3,000 257,625
Caremark International, Inc. 29,900 541,938
Centocor Inc*** 16,400 506,350
Glaxo Wellcome - ADR 26,500 748,625
Pharmacia & Upjohn, Inc. 32,335 1,252,981
Smith-Kline Beecham - ADR 9,700 538,350
--------
Drugs/Health Care total 4,340,569
--------
Hospital Management/Supplies: 1.2%
Columbia HCA Healthcare Corp. 16,822 853,717
Healthsouth Corp.*** 16,000 466,000
--------
Hospital Management/Supplies total 1,319,717
--------
Retail - Department: 0.3%
Sear Roebuck & Co. 8,800 343,200
--------
Retail-Discount: 1.0%
Price/Costco, Inc.*** 39,500 602,375
Wal-Mart Stores, Inc. 22,500 503,438
--------
Retail-Discount total 1,105,813
--------
Retail-Drug: 0.4%
Revco D.S. Inc.*** 14,700 415,275
--------
Retail - Specialty: 0.2%
Baker (J.) Inc. 37,600 216,200
--------
Cosmetics\Personal Care: 0.1%
Estee Lauder Companies - Class A 4,300 149,962
--------
</TABLE>
27
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BALANCED FUND INVESTMENTS, % Net
CONTINUED: Assets Shares Value
------ ------ -----
<S> <C> <C> <C>
Leisure Time: 0.2%
Johnson Worldwide Associates, Inc.*** 12,350 $277,875
--------
Real Estate: 0.5%
Highwoods Properties, Inc. 8,700 245,775
Town & Country Trust 28,300 367,900
--------
Real Estate total 613,675
--------
Printing/Publishing: 0.3%
Readers Digest Assn, Inc. - Class A 6,300 322,875
--------
Foods-Food Products: 2.8%
Nabisco Holdings Corp. - Class A 24,200 789,525
Sara Lee Corp. 37,500 1,195,312
Tyson Foods, Inc. - Class A 40,900 1,068,513
--------
Foods-Food Products total 3,053,350
--------
Beverage/Confect/Tobacco: 0.4%
Pepsico, Inc. 8,800 491,700
--------
Auto-Related: 2.3%
A. O. Smith Corp. 15,700 325,775
Bandag Inc. - Class A 16,300 863,900
Bandag Inc. 5,000 270,625
General Motors Corporation 21,200 1,120,950
--------
Auto-Related total 2,581,250
--------
Home Furnishings: 0.9%
Congoleum Corporation*** 20,300 218,225
Department 56, Inc. 19,300 740,638
--------
Home Furnishings total 958,863
--------
Apparel/Textile: 0.8%
Farah, Inc.*** 28,000 133,000
Kellwood Co. 35,800 729,425
--------
Apparel/Textile total 862,425
--------
Office Equipment/Computers: 2.8%
Amdahl Corp.*** 43,000 365,500
EMC Corp.*** 25,700 395,138
International Business Machines Corp. 13,150 1,206,512
Seagate Technology, Inc.*** 4,800 228,000
Wang Laboratories, Inc.*** 53,500 889,438
--------
Office Equipment/Computers total 3,084,588
--------
</TABLE>
28
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BALANCED FUND INVESTMENTS, % Net
CONTINUED: Assets Shares Value
------ ------ -----
<S> <C> <C> <C>
Electronics: 1.1%
Motorola, Inc. 3,400 193,800
Texas Instruments, Inc. 7,700 398,475
Zero Corporation 35,300 626,575
--------
Electronics total 1,218,850
--------
Telecommunications: 1.4%
MCI Communications, Inc. 59,100 1,543,987
--------
Electrical Equipment: 1.1%
BWIP Holding, Inc. 43,200 712,800
Grainger, (W. W.) Inc. 7,000 463,750
Stewart & Stevenson Services, Inc. 2,800 70,700
--------
Electrical Equipment total 1,247,250
--------
Pollution Control: 1.7%
WMX Technologies, Inc. 61,150 1,826,856
--------
Oil/Oil Service: 5.1%
Amerada Hess Corporation 7,300 386,900
Amoco Corporation 18,000 1,293,750
Ashland, Inc. 6,100 214,262
Belden & Blake Corp.*** 19,000 332,500
Occidental Petroleum Corp. 37,800 807,975
Phillips Petroleum Co. 25,400 866,775
Ranger Oil Ltd. 25,400 158,750
Schlumberger, Ltd. 10,050 695,962
Unocal Corp. 11,100 323,287
USX-Marathon Group 30,300 590,850
--------
Oil/Oil Service total 5,671,011
--------
Containers: 0.8%
Owens-Illinois, Inc. 58,500 848,250
--------
Chemicals: 0.8%
Dow Chemical Company 9,400 661,525
Hanna Company (M. A.) 9,800 274,400
--------
Chemicals total 935,925
--------
Specialty Chemicals: 0.3%
Praxair Inc. 10,900 366,512
--------
Transportation: 0.9%
Delta Air Lines Inc. 7,000 517,125
Hunt (JB) Transport Services, Inc. 28,500 477,375
--------
Transportation total 994,500
--------
</TABLE>
29
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BALANCED FUND INVESTMENTS, % Net
CONTINUED: Assets Shares Value
------ ------ -----
<S> <C> <C> <C>
Utilities-Telephone: 4.8%
Airtouch Communications, Inc.*** 38,400 $1,084,800
Ameritech Corporation 12,700 749,300
AT&T Corp. 28,500 1,845,375
GTE Corporation 20,500 902,000
NYNEX Corp. 4,000 216,000
SBC Communications, Inc. 8,500 488,750
--------
Utilities-Telephone total 5,286,225
--------
Utilities-Electric: 1.1%
Duke Power Company 5,800 274,775
Pacific Gas & Electric Company 32,700 927,863
--------
Utilities-Electric total 1,202,638
--------
Diversified Companies: 1.7%
Alexander & Baldwin, Inc. 21,700 499,100
Rockwell International Corporation 22,100 1,168,538
Tenneco, Inc. 4,600 228,275
--------
Diversified Companies total 1,895,913
--------
Miscellaneous: 1.4%
BDM, International Inc.*** 22,400 649,600
Interim Services, Inc.*** 24,300 844,425
--------
Miscellaneous total 1,494,025
--------
TOTAL COMMON STOCKS,
(COST: $43,972,558) $50,635,161
----------
TOTAL INVESTMENTS, BALANCED SERIES
FUND (COST: $100,610,619)** $109,598,168
===========
See accompanying notes to investments in securities.
<FN>
*Moody's/Standard & Poors' quality ratings. See the current Prospectus and Statement of Additional Information for a complete
description of these ratings.
**At December 31, 1995, the cost of securities for federal income tax purposes was $100,610,619. The aggregate unrealized
appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation............................ $10,599,239
Gross unrealized depreciation............................ (1,611,689)
---------
Net unrealized appreciation.............................. $8,987,550
=========
***This Security is not income producing.
</FN>
</TABLE>
30
<PAGE>
BOND FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
% Net Quality Annualized Maturity Par
BOND FUND INVESTMENTS: Assets Rating* Yield Date Amount Value
------ ------- ----- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Short-Term Investments:
Savings: 3.3%
Chase Manhattan - Cash Account 4.82% $452,116
--------
TOTAL SHORT-TERM INVESTMENTS,
AT COST: $452,116
--------
<FN>
* For Short-term Investments, Market Value is assumed to equal Book Value.
</FN>
<CAPTION>
% Net Quality Coupon Maturity Par
Government & Agency Bonds: Assets Rating* Rate Date Amount Value
------ ------- ---- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Government Guaranteed - U.S.: 14.2%
U.S. Treasury Note AAA 8.500 May 15, 1997 300,000 312,938
U.S. Treasury Note AAA 7.125 Oct 15, 1998 250,000 261,953
U.S. Treasury Note AAA 7.500 Nov 15, 2001 200,000 220,437
U.S. Treasury Note AAA 6.375 Jan 15, 1999 300,000 309,281
U.S. Treasury Note AAA 7.000 Apr 15, 1999 400,000 420,375
U.S. Treasury Note AAA 7.125 Sep 30, 1999 250,000 265,000
U.S. Treasury Note AAA 5.875 Feb 15, 2004 150,000 153,047
--------
Government Guaranteed - U.S. total
(Cost $1,851,475) $1,943,031
---------
Quasi-Government/Government Sponsored: 3.5%
Federal Home Loan Bank AAA 4.400 Jan 21, 1997 300,000 297,385
Federal Home Loan Mortgage Corp. AAA 6.440 Jan 28, 2000 150,000 154,743
FHLMC Pass Through Cert. AAA 8.500 Apr 01, 2001 9,054 9,311
FHLMC Pass Through Cert. AAA 8.500 May 01, 2002 22,673 23,317
--------
Quasi-Government/Government Sponsored
Total (Cost $483,773) $484,756
--------
Nonconvertible Corporate Bonds: 77.5%
Forest Products/Paper: 3.6%
Champion International Corp. BAA-1/BBB 9.875 Jun 01, 2000 100,000 115,148
Champion International Corp. BAA-1/BBB 7.100 Sep 01, 2005 250,000 262,556
Kimberly-Clark Corp. AA-2/AA 9.000 Aug 01, 2000 100,000 112,869
--------
Forest Products/Paper total 490,573
--------
Insurance: 1.8%
Aetna Life & Casualty A-2/A- 6.375 Aug 15, 2003 250,000 250,348
--------
Investment Banking/Brokerage: 2.6%
Donaldson, Lufkin, Jenrette, Inc. BAA-1/A- 6.875 Nov 01, 2005 200,000 204,938
Salomon Inc. BAA-1/BBB 6.700 Dec 01, 1998 150,000 150,911
--------
Investment Banking/Brokerage total 355,849
--------
</TABLE>
31
<PAGE>
BOND FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BOND FUND INVESTMENTS, % Net Quality Coupon Maturity Par
CONTINUED: Assets Rating* Rate Date Amount Value
------ ------- ---- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Finance Co. - Consumer Loans: 2.5%
Household Finance Co. A-2/A 7.125 Sep 01, 2005 $325,000 $345,289
--------
Drugs/Health Care: 3.4%
Abbott Labs AA-1/AAA 5.600 Oct 01, 2003 200,000 197,133
American Home Products A-2/A- 7.700 Feb 15, 2000 250,000 267,881
--------
Drugs/Health Care total 465,014
--------
Cosmetics/Personal Care: 1.9%
Procter & Gamble Co. AA-2/AA 6.850 Jun 01, 1997 250,000 255,093
--------
Media: 0.8%
McGraw-Hill, Inc. A-1 9.430 Sep 01, 2000 100,000 114,878
--------
Publishing/New: 1.8%
Gannett Co. AA-2/A+ 5.850 May 01, 2000 250,000 250,901
--------
Retail-Department: 4.2%
Dayton Hudson Corp. A-3/BBB+ 9.750 Nov 01, 1998 250,000 275,190
Wal-Mart Stores, Inc. AA-1/AA 5.500 Mar 01, 1998 300,000 295,464
--------
Retail-Department total 570,654
--------
Foods-Products & Services: 1.5%
Dean Foods Co. A-3/A 6.750 Jun 15, 2005 100,000 102,791
H.J. Heinz Company A-1/A+ 5.500 Sep 15, 1997 100,000 100,143
--------
Foods-Products & Services total 202,934
--------
Beverages/Confect/Tobacco: 1.8%
Coca-Cola Co. AA-3/AA 6.000 Jul 15, 2003 250,000 251,363
--------
Auto-Related: 2.3%
Ford Motor Co. A-1/A+ 7.500 Nov 15, 1999 200,000 211,255
General Motors Acceptance Corporation A-3/A- 6.625 Oct 01, 2002 100,000 102,840
--------
Auto-Related total 314,095
--------
Office Equipment/Computers: 1.9%
International Business Machines Corp. A-1/A 6.375 Nov 01, 1997 262,000 265,275
--------
Electronics: 2.3%
Raytheon Co. A-1/A+ 6.500 Jul 15, 2005 300,000 309,698
--------
Electrical Equipment: 2.3%
Emerson Electric Co. AA-1/AA+ 6.300 Nov 01, 2005 300,000 308,521
--------
</TABLE>
32
<PAGE>
BOND FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BOND FUND INVESTMENTS, % Net Quality Coupon Maturity Par
CONTINUED: Assets Rating* Rate Date Amount Value
------ ------- ---- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Aerospace/Defense: 1.1%
Rockwell International Corp. AA-3/AA- 6.750 Sep 15, 2002 $150,000 $157,119
--------
Electric Household Appliance: 0.9%
Maytag Corporation BAA-1/BBB+ 9.750 May 15, 2002 100,000 119,398
--------
Engineering/Construction Services: 1.5%
Foster Wheeler Corp. BAA-2/BBB 6.750 Nov 15, 2005 200,000 204,770
--------
Machine Tools: 1.9%
Giddings & Lewis BA1/BBB 7.500 Oct 01, 2005 250,000 261,922
--------
Finance-Diversified: 3.7%
John Deere Capital A-2/A 7.375 Sep 02, 1996 250,000 248,534
Dow Capital B.V. A-1/A 7.375 Jul 15, 2002 250,000 260,494
--------
Finance-Diversified total 509,028
--------
Pollution Control: 1.2%
WMX Technologies, Inc. A-1/AA- 4.100 Oct 01, 2002 150,000 163,873
--------
Oil/Oil Service: 5.8%
Enron Corp BAA-2/BBB+ 7.625 Sep 10, 2004 300,000 327,554
Shell Oil Company AA-2/AAA 6.625 Jul 01, 1999 150,000 155,032
Union Oil Co. of California BAA-2/BBB 7.200 May 15, 2005 300,000 318,449
--------
Oil/Oil Service total 801,035
--------
Chemicals: 1.8%
Monsanto Co. A-1/A 6.000 Jul 01, 2000 250,000 251,701
--------
Transportation: 1.5%
Burlington Northern, Inc. BAA-2/BBB 7.400 May 15, 1999 200,000 209,062
--------
Metals-Fabrication & Manufacturing: 1.0%
Cyprus Minerals BAA-2/BBB- 6.625 Oct 15, 2005 130,000 131,681
--------
Utilities-Nat'l Gas Diversified: 1.8%
Consolidated Natural Gas Co. A-1/AA- 5.750 Aug 01, 2003 250,000 246,312
--------
</TABLE>
33
<PAGE>
BOND FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
BOND FUND INVESTMENTS, % Net Quality Coupon Maturity Par
CONTINUED: Assets Rating* Rate Date Amount Value
------ ------- ---- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Utilities-Telephone: 9.3%
Bell South Telecommunications, Inc. AAA/AAA 6.500 Feb 01, 2000 $150,000 $154,232
Bell South Telecommunications, Inc. AAA/AAA 6.500 Jun 15, 2005 150,000 155,583
Bell Tel of Penn AA-1/AA 6.125 Mar 15, 2003 250,000 252,406
GTE-North A-1/AA- 5.500 Feb 15, 1999 250,000 249,078
Indiana Bell Tele. AAA/AAA 4.375 Jun 01, 2003 200,000 180,571
New Jersey Bell Telephone AAA/AA+ 4.625 Jun 01, 2005 191,000 170,853
Northwestern Bell Telephone Co. AA-3/AA- 9.500 May 01, 2000 100,000 113,723
--------
Utilities-Telephone total 1,276,446
--------
Utilities-Electric: 10.5%
Baltimore Gas & Electric A-1/A+ 5.500 Jul 15, 2000 100,000 98,864
Consolidated Edison of New York A-1/A+ 6.250 Apr 01, 1998 200,000 202,503
Gulf Power Co. A-1/A+ 5.550 Apr 01, 1998 150,000 149,769
Midwest Power Systems A-2/A+ 7.125 Feb 01, 2003 150,000 158,229
Northern States Power A-1/AA- 5.875 Oct 01, 1997 150,000 150,910
Pacificorp A-2/A 6.750 Apr 01, 2005 250,000 257,205
Union Electric Company A-1/AA- 6.750 Oct 15, 1999 150,000 154,757
Wisconsin Public Service, Inc. AA-2/AA+ 7.300 Oct 01, 2002 250,000 265,235
--------
Utilities-Electric total 1,437,472
--------
Utilities-Natural Gas Pipeline: 0.8%
Burlington Resources, Inc. A-3/A- 9.625 Jun 15, 2000 100,000 114,447
--------
TOTAL NONCONVERTIBLE CORPORATE
BONDS (COST: $10,155,116) $10,634,751
----------
TOTAL INVESTMENTS, BOND FUND
(COST: $12,942,480)** $13,514,654
==========
See accompanying notes to investments in securities.
<FN>
*Moody's/Standard & Poors' quality ratings. See the current Prospectus and Statement of Additional Information for a complete
description of these ratings.
**At December 31, 1995, the cost of securities for federal income tax purposes was $12,942,480. The aggregate unrealized
appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation................................ $579,993
Gross unrealized depreciation................................ (7,819)
--------
Net unrealized appreciation.................................. $572,174
========
</FN>
</TABLE>
34
<PAGE>
MONEY MARKET FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
% Net Quality Annualized Maturity Par
MONEY MARKET FUND INVESTMENTS: Assets Rating* Yield Date Amount Value
------ ------- ----- ---- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Short-Term Investments:
Commercial Paper/Savings: 56.3%
American Express Credit A-1/P-1 5.71% Apr 02, 1996 $598,000 $589,365
Associates Corp of North America A-1+/P-1 5.86% Jan 19, 1996 612,000 610,062
Chevron Oil Finance Company A-1+/P-1 5.80% Jan 19, 1996 493,000 491,444
Coca-Cola Co. A-1+/P-1 5.73% Jan 31, 1996 591,000 588,068
Ford Motor Credit Company A-1/P-1 5.86% Jan 05, 1996 600,000 599,430
Interstate Power A-1/P-1 5.88% Jan 31, 1996 598,000 594,944
John Deere Capital Corp. A-1/P-1 5.75% Feb 23, 1996 590,000 584,970
Madison Gas & Electric Co. A-1+/P-1 5.73% Feb 15, 1996 600,000 595,613
Merrill Lynch Capital Markets A-1+/P-1 5.91% Jan 31, 1996 564,000 561,132
Pfizer Inc. A-1+/P-1 5.79% Jan 19, 1996 603,000 601,097
Chase Manhattan - Cash Account 4.82% 587,450 587,450
----------
TOTAL COMMERCIAL PAPER/
SAVINGS, AT COST $6,403,573
----------
Quasi-Government/Government Sponsored: 34.8%
Federal Home Loan Bank P-1 5.62% Mar 07, 1996 4,000,000 3,959,658
----------
TOTAL QUASI-GOVERNMENT/
GOVERNMENT SPONSORED, AT COST $3,959,658
----------
Government Guaranteed: 8.8%
Student Loan Marketing Assn. P-1 5.78% Mar 14, 1996 1,000,000 1,000,000
----------
TOTAL GOVERNMENT GUARANTEED,
AT COST $1,000,000
----------
TOTAL INVESTMENTS, MONEY
MARKET FUND, AT COST $11,363,233
----------
See accompanying notes to investments in securities.
<FN>
*Moody's/Standard & Poors' quality ratings. See the current Prospectus and Statement of Additional Information for a complete
description of these ratings.
</FN>
</TABLE>
35
<PAGE>
TREASURY 2000 FUND OF ULTRA SERIES FUND
Investments in Securities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Interest Maturity Principal
TREASURY 2000 FUND INVESTMENTS: Rate Date Amount Value
---- ---- ------ -----
<S> <C> <C> <C> <C>
Government Guaranteed - U.S.:
U.S. Treasury Strip (Cost $1,273,222)* 9.69% Nov 15, 2000 $2,000,000 $1,545,960.00
============
See accompanying notes to investments in securities.
Notes to investments in securities:
Interest rates on short-term investments and stripped Treasury Securities
represent annualized yield to maturity at date of purchase.
Interest rates on other securities represent coupon rates.
Values of investment securities are determined as described in Note 2 of the
financial statements.
<FN>
*At December 31, 1995, the cost of securities for federal income tax purposes was $1,273,222. The aggregate unrealized
appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation............................ $272,738
Gross unrealized depreciation............................ --
--------
Net unrealized appreciation.............................. $272,738
========
</FN>
</TABLE>
36
<PAGE>
ULTRA SERIES FUND
Statement of Operations
Year Ended December 31, 1995
<TABLE>
<CAPTION>
Capital Growth and Money Treasury
Appreciation Income Stock Balanced Bond Market 2000
Stock Fund Fund Fund Fund Fund Fund
---------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Investment income (note 2):
Interest income $79,700 $331,523 $3,152,226 $690,419 $562,355 $111,658
Dividend income 337,588 1,762,795 939,820 -- -- --
---------- ---------- ---------- -------- -------- --------
Total income 417,288 2,094,318 4,092,046 690,419 562,355 111,658
---------- ---------- ---------- -------- -------- --------
Expenses (note 4):
Advisory fees 102,598 355,655 434,607 51,014 47,967 --
Advisory/Administrative fees -- -- -- -- -- 6,379
Accounting and custodian fees 37,690 80,630 96,927 11,410 14,694 --
Trustees' fees 877 3,027 3,694 434 408 --
Legal fees 1,299 4,484 5,472 643 605 --
Audit fees 1,959 6,763 8,253 969 912 --
Other expenses 11,761 40,609 49,554 5,820 5,476 --
---------- ---------- ---------- -------- -------- --------
Expenses before reimbursement 156,184 491,168 598,507 70,290 70,062 6,379
Reimbursable expenses from Century
Life of America (22,806) (28,817) (33,518) (3,971) (7,705) --
---------- ---------- ---------- -------- -------- --------
Total net expenses 133,378 462,351 564,989 66,319 62,357 6,379
---------- ---------- ---------- -------- -------- --------
Net investment income 283,910 1,631,967 3,527,057 624,100 499,998 105,279
---------- ---------- ---------- -------- -------- --------
Realized and unrealized gain (loss
on investments (notes 2 and 3):
Realized gain (loss)on security
transactions:
Proceeds from sale of securities
and principal pay downs 13,157,907 40,626,106 30,316,916 1,257,169 2,747,991 --
Cost of securities sold (12,079,245) (34,069,788) (26,069,055) (1,227,329) (2,747,991) --
---------- ---------- ---------- --------- -------- --------
Net realized gain (loss) on security
transactions 1,078,662 6,556,318 4,247,861 29,840 -- --
Net change in unrealized appreciation
or depreciation on investments 3,744,217 11,134,096 9,430,371 883,542 -- 161,762
---------- ---------- ---------- --------- -------- --------
Net gain (loss) on investments 4,822,879 17,690,414 13,678,232 913,382 -- 161,762
---------- ---------- ---------- --------- -------- --------
Net increase (decrease) in net assets
resulting from operations $5,106,789 $19,322,381 $17,205,289 $1,537,482 $499,998 $267,041
========== ========== ========== ========= ======== ========
</TABLE>
See accompanying notes to financial statements.
37
<PAGE>
ULTRA SERIES FUND
Statement of Changes in Net Assets
Years Ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
CAPITAL APPRECIATION GROWTH AND INCOME
STOCK FUND STOCK FUND BALANCED FUND
Operations: 1995 1994 1995 1994 1995 1994
- ----------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net investment income $283,910 $77,791 $1,631,967 $ 874,346 $3,527,057 $ 2,397,340
Net realized gain (loss) on security
transaction 1,078,662 415,595 6,556,318 969,090 4,247,861 996,435
Net change in unrealized appreciation
or depreciation on investments 3,744,217 (325,464) 11,134,096 (1,460,770) 9,430,371 (3,711,318)
----------- ---------- ----------- ----------- ----------- -----------
Change in net assets from
operations 5,106,789 167,922 19,322,381 382,666 17,205,289 (317,543)
----------- ---------- ----------- ----------- ----------- -----------
Distributions to shareholders:
From net investment income (280,255) (74,385) (1,628,238) (867,949) (3,519,859) (2,388,749)
From realized gains on investments (1,089,798) (404,459) (6,422,927) (1,080,893) (4,072,590) (1,095,767)
----------- ---------- ----------- ----------- ----------- -----------
Change in net assets from
distributions (1,370,053) (478,844) (8,051,165) (1,948,842) (7,592,449) (3,484,516)
----------- ---------- ----------- ----------- ----------- -----------
Capital share transactions (note 5):
Proceeds from sale of shares 25,682,821 9,344,358 35,770,514 17,152,559 28,498,420 16,851,604
Net asset value of shares issued in
reinvestment of distributions 1,370,053 478,844 8,051,165 1,948,842 7,592,449 3,484,516
----------- ---------- ----------- ----------- ----------- -----------
27,052,874 9,823,202 43,821,679 19,101,401 36,090,869 20,336,120
Cost of shares repurchased (2,121,172) (63,386) (1,868,194) (1,089,803) (2,203,087) (3,428,898)
----------- ---------- ----------- ----------- ----------- -----------
Change in net assets derived from
capital share transactions 24,931,702 9,759,816 41,953,485 18,011,598 33,887,782 16,907,222
----------- ---------- ----------- ----------- ----------- -----------
Increase in net assets 28,668,438 9,448,894 53,224,701 16,445,422 43,500,622 13,105,163
Net assets:
Beginning of year 9,448,894 -- 48,913,461 32,468,039 67,468,336 54,363,173
----------- ---------- ----------- ----------- ----------- -----------
End of year $38,117,332 $9,448,894 $102,138,162 $48,913,461 $110,968,958 $67,468,336
=========== ========== =========== =========== =========== ===========
Undistributed net investment
income included in net assets $7,061 $3,406 $10,991 $7,261 $23,449 $16,251
=========== ========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
ULTRA SERIES FUND
Statement of Changes in Net Assets (Continued)
Years Ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
BOND FUND MONEY MARKET FUND TREASURY 2000 FUND
Operations: 1995 1994 1995 1994 1995 1994
- ----------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net investment income $624,100 $416,928 $499,998 $209,397 $105,279 $96,809
Net realized gain (loss) on security
transactions 29,840 4,272 -- -- -- --
Net change in unrealized appreciation
or depreciation on investments 883,542 (649,375) -- -- 161,762 (193,861)
---------- ---------- ---------- ---------- ---------- ----------
Change in net assets from
operations 1,537,482 (228,175) 499,998 209,397 267,041 (97,052)
----------- ---------- ----------- ----------- ----------- -----------
Distributions to shareholders:
From net investment income (622,541) (416,148) (499,998) (209,397) -- --
From realized gains on investments (29,840) (4,272) -- -- -- --
----------- ---------- ----------- ----------- ----------- -----------
Change in net assets from
distributions (652,381) (420,420) (499,998) (209,397) -- --
----------- ---------- ----------- ----------- ----------- -----------
Capital share transactions (note 5):
Proceeds from sale of shares 5,496,387 2,888,932 16,248,249 11,468,113 6,176 5,899
Net asset value of shares issued in
reinvestment of distributions 652,380 420,420 499,536 208,618 -- --
----------- ---------- ----------- ----------- ----------- -----------
6,148,767 3,309,352 16,747,785 11,676,731 6,176 5,899
Cost of shares repurchased (1,176,460) (1,090,887) (13,173,017) (8,626,862) -- --
----------- ---------- ----------- ----------- ----------- -----------
Change in net assets derived from
capital share transactions 4,972,307 2,218,465 3,574,768 3,049,869 6,176 5,899
----------- ---------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets 5,857,408 1,569,870 3,574,768 3,049,869 273,217 (91,153)
Net assets:
Beginning of year 7,867,360 6,297,490 7,799,361 4,749,492 1,272,110 1,363,263
----------- ---------- ----------- ----------- ----------- -----------
End of year $13,724,768 $7,867,360 $11,374,129 $7,799,361 $1,545,327 $1,272,110
=========== ========== =========== =========== =========== ===========
Undistributed net investment
income included in net assets $4,349 $2,789 -- -- -- --
=========== ========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
CAPITAL APPRECIATION STOCK FUND OF ULTRA SERIES FUND
Financial Highlights
Years Ended December 31
<TABLE>
<CAPTION>
------------------------------------ CAPITAL APPRECIATION STOCK FUND ----------------------
<S> <C> <C>
(For a share outstanding throughout the period): 1995 1994
---- ----
Net Asset Value, Beginning of Period $9.97 $10.00
------ ------
Income from Investment Operations
Net Investment Income .14 0.16
Net Realized and Unrealized Gain (Loss)
on Investments 2.91 0.37
------ ------
Total from Investment Operations 3.05 0.53
--------------------------
Distributions
Distributions from Net Investment Income (.14) (0.15)
------ ------
Distributions from Realized Capital Gains (.37) (0.41)
------ ------
Total Distributions (.51) (0.56)
--------------------------
Net Asset Value, End of Period $12.51 $9.97
====================================================================================================================================
Total Return* 30.75% 5.44%
====================================================================================================================================
Ratio/Supplemental Data
Net Assets, End of Period (000s Omitted) $38,117 $9,449
Ratio of Expenses to Average Net Assets** 0.65% 0.65%
Ratio of Net Investment Income to Average
Net Assets** 1.37% 1.55%
Portfolio Turnover Rate 61.32% 65.81%
Average Commission Rate $0.06
====================================================================================================================================
<FN>
*These returns are after all charges at the mutual fund level have been subtracted. These returns are higher than the returns
at the separate account level because charges made at the separate account level have not been subtracted.
**During the periods shown, Century Life of America and its affiliates absorbed all expenses in excess of .65% of the average
net assets of the Capital Appreciation Stock, Growth and Income Stock, Balanced, Bond and Money Market Funds under the terms of
an Expense Reimbursement Agreement between the Ultra Series Fund and Century Life of America. Annually, the Fund and Century
Life of America have renewed the Expense Reimbursement Agreement. If the Expense Reimbursement Agreement had not been in effect
and if the full expenses allowable under the Investment Advisory Agreement between the Ultra Series Fund and the Investment
Adviser had been charged, the amounts that would have been charged and the ratios that would have resulted are:
</FN>
<CAPTION>
Capital Appreciation Stock Fund 1995 1994
---- ----
<S> <C> <C>
Amount Charged $156,184 $42,519
Ratio of Expenses to
Average Net Assets 0.75% 0.85%
Ratio of Net Investment
Income to Average Net Assets 1.25% 1.35%
</TABLE>
40
<PAGE>
GROWTH AND INCOME STOCK FUND OF ULTRA SERIES FUND
Financial Highlights
Years Ended December 31
<TABLE>
<CAPTION>
---------------------------------- GROWTH AND INCOME STOCK FUND ----------------------------
<S> <C> <C> <C> <C> <C>
(For a share outstanding throughout the period): 1995 1994 1993 1992 1991
-----------------------------------------------------------------------------
Net Asset Value, Beginning of Period $15.06 $15.51 $15.49 $15.21 $12.75
----- ----- ----- ----- -----
Income from Investment Operations
Net Investment Income .37 0.32 0.29 0.32 0.33
Net Realized and Unrealized Gain (Loss)
on Investments 4.37 (0.04) 1.87 0.90 2.95
----- ----- ----- ----- -----
Total from Investment Operations 4.74 0.28 2.16 1.22 3.29
-------------------------------------------------------------------------------------
Distributions
Distributions from Net Investment Income (.37) (0.32) (0.29) (0.32) (0.34)
Distributions from Realized Capital Gains (1.23) (0.40) (1.85) (0.62) (0.49)
----- ----- ----- ----- -----
Total Distributions (1.60) (0.73) (2.14) (0.94) (0.83)
-------------------------------------------------------------------------------------
Net Asset Value, End of Period $18.20 $15.06 $15.51 $15.49 $15.21
====================================================================================================================================
Total Return* 31.75% 1.42% 13.77% 7.66% 25.66%
====================================================================================================================================
Ratio/Supplemental Data
Net Assets, End of Period (000s Omitted) $102,138 $48,913 $32,468 $24,382 $17,101
Ratio of Expenses to Average Net Assets** 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of Net Investment Income to Average
Net Assets** 2.28% 2.19% 1.84% 2.11% 2.58%
Portfolio Turnover Rate 57.80% 45.36% 56.79% 29.67% 27.90%
Average Commission Rate $0.06
====================================================================================================================================
<FN>
*These returns are after all charges at the mutual fund level have been subtracted. These returns are higher than the returns
at the separate account level because charges made at the separate account level have not been subtracted.
**During the periods shown, Century Life of America and its affiliates absorbed all expenses in excess of .65% of the average
net assets of the Capital Appreciation Stock, Growth and Income Stock, Balanced, Bond and Money Market Funds under the terms of
an Expense Reimbursement Agreement between the Ultra Series Fund and Century Life of America. Annually, the Fund and Century
Life of America have renewed the Expense Reimbursement Agreement. If the Expense Reimbursement Agreement had not been in effect
and if the full expenses allowable under the Investment Advisory Agreement between the Ultra Series Fund and the Investment
Adviser had been charged, the amounts that would have been charged and the ratios that would have resulted are:
</FN>
<CAPTION>
Growth and Income Stock Fund 1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Amount Charged $491,168 $281,760 $210,141 $151,195 $90,028
Ratio of Expenses to
Average Net Assets 0.69% 0.70% 0.73% 0.74% 0.74%
Ratio of Net Investment
Income to Average Net Assets 2.23% 2.14% 1.76% 2.02% 2.49%
</TABLE>
41
<PAGE>
BALANCED FUND OF ULTRA SERIES FUND
Financial Highlights
Years Ended December 31
<TABLE>
<CAPTION>
---------------------------------------------------- BALANCED FUND -----------------------------
(For a share outstanding throughout the period): 1995 1994 1993 1992 1991
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.90 $13.70 $13.54 $13.44 $12.11
----- ----- ----- ----- -----
Income from Investment Operations
Net Investment Income .55 0.52 0.50 0.55 0.62
Net Realized and Unrealized Gain (Loss)
on Investments 2.29 (0.56) 0.95 0.40 1.56
----- ----- ----- ----- -----
Total from Investment Operations 2.84 (0.04) 1.45 0.95 2.18
-------------------------------------------------------------------------------------
Distributions
Distributions from Net Investment Income (.55) (0.51) (0.50) (0.55) (0.63)
Distributions from Realized Capital Gains (.56) (0.25) (0.79) (0.30) (0.22)
----- ----- ----- ----- -----
Total Distributions (1.11) (0.76) (1.29) (0.85) (0.85)
-------------------------------------------------------------------------------------
Net Asset Value, End of Period $14.63 $12.90 $13.70 $13.54 $13.44
====================================================================================================================================
Total Return* 22.27% -0.46% 10.47% 6.85% 18.53%
====================================================================================================================================
Ratio/Supplemental Data
Net Assets, End of Period (000s Omitted) $110,969 $67,468 $54,363 $41,604 $29,539
Ratio of Expenses to Average Net Assets** 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of Net Investment Income to Average
Net Assets** 4.03% 4.00% 3.62% 4.10% 4.98%
Portfolio Turnover Rate 36.68% 28.53% 28.71% 19.23% 13.26%
Average Commission Rate $0.06
====================================================================================================================================
<FN>
*These returns are after all charges at the mutual fund level have been subtracted. These returns are higher than the returns
at the separate account level because charges made at the separate account level have not been subtracted.
**During the periods shown, Century Life of America and its affiliates absorbed all expenses in excess of .65% of the average
net assets of the Capital Appreciation Stock, Growth and Income Stock, Balanced, Bond and Money Market Funds under the terms of
an Expense Reimbursement Agreement between the Ultra Series Fund and Century Life of America. Annually, the Fund and Century
Life of America have renewed the Expense Reimbursement Agreement. If the Expense Reimbursement Agreement had not been in effect
and if the full expenses allowable under the Investment Advisory Agreement between the Ultra Series Fund and the Investment
Adviser had been charged, the amounts that would have been charged and the ratios that would have resulted are:
</FN>
<CAPTION>
Balanced Fund 1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Amount Charged $598,507 $417,750 $362,284 $254,326 $172,438
Ratio of Expenses to
Average Net Assets 0.68% 0.70% 0.74% 0.72% 0.71%
Ratio of Net Investment
Income to Average Net Assets 4.00% 3.95% 3.53% 4.03% 4.92%
</TABLE>
42
<PAGE>
BOND FUND OF ULTRA SERIES FUND
Financial Highlights
Years Ended December 31
<TABLE>
<CAPTION>
------------------------------------------------------- BOND FUND ---------------------------------
(For a share outstanding throughout the period): 1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.67 $10.58 $10.32 $10.37 $9.75
----- ----- ----- ----- -----
Income from Investment Operations
Net Investment Income .60 0.59 0.64 0.69 0.77
Net Realized and Unrealized Gain (Loss)
on Investments .96 (0.90) 0.28 (0.03) 0.62
----- ----- ----- ----- -----
Total from Investment Operations 1.56 (0.31) 0.92 0.66 1.39
-------------------------------------------------------------------------------------
Distributions
Distributions from Net Investment Income (.59) (0.59) (0.65) (0.70) (0.77)
Distributions from Realized Capital Gains (.01) (0.01) (0.01) (0.01) 0.00
----- ----- ----- ----- -----
Total Distributions (.60) (0.60) (0.66) (0.71) (0.77)
-------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.63 $9.67 $10.58 $10.32 $10.37
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return* 16.37% -3.06% 8.87% 6.47% 14.70%
====================================================================================================================================
Ratio/Supplemental Data
Net Assets, End of Period (000s Omitted) $13,725 $7,867 $6,297 $5,244 $3,975
Ratio of Expenses to Average Net Assets** 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of Net Investment Income to Average
Net Assets** 6.08% 6.03% 5.99% 6.83% 7.74%
Portfolio Turnover Rate 14.74% 11.97% 12.23% 13.58% 8.74%
====================================================================================================================================
<FN>
*These returns are after all charges at the mutual fund level have been subtracted. These returns are higher than the returns
at the separate account level because charges made at the separate account level have not been subtracted.
**During the periods shown, Century Life of America and its affiliates absorbed all expenses in excess of .65% of the average
net assets of the Capital Appreciation Stock, Growth and Income Stock, Balanced, Bond and Money Market Funds under the terms of
an Expense Reimbursement Agreement between the Ultra Series Fund and Century Life of America. Annually, the Fund and Century
Life of America have renewed the Expense Reimbursement Agreement. If the Expense Reimbursement Agreement had not been in effect
and if the full expenses allowable under the Investment Advisory Agreement between the Ultra Series Fund and the Investment
Adviser had been charged, the amounts that would have been charged and the ratios that would have resulted are:
</FN>
<CAPTION>
Bond Fund 1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Amount Charged $70,290 $48,651 $44,293 $33,269 $27,311
Ratio of Expenses to
Average Net Assets 0.68% 0.70% 0.75% 0.75% 0.75%
Ratio of Net Investment
Income to Average Net Assets 6.04% 5.98% 5.89% 6.74% 7.65%
</TABLE>
43
<PAGE>
MONEY MARKET FUND OF ULTRA SERIES FUND
Financial Highlights
Years Ended December 31
<TABLE>
<CAPTION>
---------------------------------------------- MONEY MARKET FUND -------------------------------
(For a share outstanding throughout the period): 1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- -----
Income from Investment Operations
Net Investment Income 0.05 0.03 0.03 0.03 0.05
Net Realized and Unrealized Gain (Loss)
on Investments 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- -----
Total from Investment Operations 0.05 0.03 0.03 0.03 0.05
--------------------------------------------------------------------------------------
Distributions
Distributions from Net Investment Income (0.05) (0.03) (0.03) (0.03) (0.05)
Distributions from Realized Capital Gains (0.00) 0.00 0.00 0.00 0.00
----- ----- ----- ----- -----
Total Distributions (0.05) (0.03) (0.03) (0.03) (0.05)
--------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00
====================================================================================================================================
Total Return* 5.21% 3.34% 2.86% 3.05% 5.36%
====================================================================================================================================
Ratio/Supplemental Data
Net Assets, End of Period (000s Omitted) $11,374 $7,799 $4,749 $5,097 $5,082
Ratio of Expenses to Average Net Assets** 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of Net Investment Income to Average
Net Assets** 5.17% 3.66% 2.43% 3.05% 5.36%
Portfolio Turnover Rate -- -- -- -- --
====================================================================================================================================
For the Money Market Fund, the "seven-day average" yield for the seven days
ended December 31, 1995, was 4.93% and the "effective" yield for that period was
5.05%.
<FN>
*These returns are after all charges at the mutual fund level have been subtracted. These returns are higher than the returns
at the separate account level because charges made at the separate account level have not been subtracted.
**During the periods shown, Century Life of America and its affiliates absorbed all expenses in excess of .65% of the average
net assets of the Capital Appreciation Stock, Growth and Income Stock, Balanced, Bond and Money Market Funds under the terms of
an Expense Reimbursement Agreement between the Ultra Series Fund and Century Life of America. Annually, the Fund and Century
Life of America have renewed the Expense Reimbursement Agreement. If the Expense Reimbursement Agreement had not been in effect
and if the full expenses allowable under the Investment Advisory Agreement between the Ultra Series Fund and the Investment
Adviser had been charged, the amounts that would have been charged and the ratios that would have resulted are:
</FN>
<CAPTION>
Money Market Fund 1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Amount Charged $70,062 $44,391 $44,836 $39,068 $38,030
Ratio of Expenses to
Average Net Assets 0.73% 0.78% 0.77% 0.75% 0.73%
Ratio of Net Investment
Income to Average Net Assets 5.09% 3.53% 2.31% 2.96% 5.29%
</TABLE>
44
<PAGE>
TREASURY 2000 FUND OF ULTRA SERIES FUND
Financial Highlights
Years Ended December 31
<TABLE>
<CAPTION>
------------------------------------------------- TREASURY 2000 FUND -------------------------------
(For a share outstanding throughout the period) 1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $7.00 $7.53 $6.53 $6.04 $5.02
----- ----- ----- ----- -----
Income from Investment Operations
Net Investment Income 0.58 0.53 0.48 0.45 0.41
Net Realized and Unrealized Gain (Loss)
on Investments 0.89 (1.06) 0.52 0.04 0.61
----- ----- ----- ----- -----
Total from Investment Operations 1.47 (0.53) 1.00 0.49 1.02
---------------------------------------------------------------------------------------
Distributions
Distributions from Net Investment Income 0.00 0.00 0.00 0.00 0.00
Distributions from Realized Capital Gains 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- -----
Total Distributions 0.00 0.00 0.00 0.00 0.00
---------------------------------------------------------------------------------------
Net Asset Value, End of Period $8.47 $7.00 $7.53 $6.53 $6.04
====================================================================================================================================
Total Return* 20.99% -7.12% 15.43% 8.01% 20.37%
====================================================================================================================================
Ratio/Supplemental Data
Net Assets, End of Period (000s Omitted) $1,545 $1,272 $1,363 $1,176 $1,084
Ratio of Expenses to Average Net Assets 0.45% 0.45% 0.45% 0.45% 0.45%
Ratio of Net Investment Income to Average
Net Assets 7.40% 7.50% 6.69% 7.26% 7.76%
Portfolio Turnover Rate -- -- -- -- --
====================================================================================================================================
<FN>
*These returns are after all charges at the mutual fund level have been subtracted. These returns are higher than the returns
at the separate account level because charges made at the separate account level have not been subtracted.
</FN>
</TABLE>
45
<PAGE>
ULTRA SERIES FUND
Notes to Financial Statements
(1) Description of the Fund
The Ultra Series Fund, a Massachusetts Business Trust, is registered as a
diversified, open-end management investment company under the Investment
Company Act of 1940. The Ultra Series Fund is a series fund with six
investment portfolios (funds), each with different investment objectives
and policies and each issuing a separate class of common stock with a par
value of $.01 per share. Fund shares are sold and redeemed at a price equal
to the shares' net asset value (note 2(b)). The assets of each fund are
held separate from the assets of the other funds.
Shares in each fund are currently offered only to separate accounts of
Century Life of America at a price equal to their respective net asset
values per share, without sales charge.
(2) Significant Accounting Policies
(a) Valuation of Investment Securities
Value of Securities, including call options, which are traded on
exchanges are valued at the last sales price on the principal exchange
as of the close of the New York Stock Exchange or 3:00 p.m. Central
Standard Time, whichever is earlier, on the day the securities are
being valued. Securities not traded on a stock exchange on a given day
or traded over-the-counter are valued using a procedure determined in
good faith to represent a fair value and which is authorized by the
Board of Trustees. Pursuant to Rule 2A-7 of the Investment Company Act
of 1940 (as amended), all money market instruments in the Money Market
Fund are valued on an amortized cost basis. Money Market instruments in
the other funds are valued on an amortized cost basis if there are less
than 60 days to maturity.
(b) Share Valuation and Dividends to Shareholders
The net asset value of the shares of each fund is determined on a daily
basis based on the valuation of the net assets of the funds divided by
the number of shares of the fund outstanding. Expenses, including the
investment advisory and advisory/ administrative fees (note 4), are
accrued daily and reduce the net asset value per share.
Dividends on the Money Market Fund will be declared and reinvested
daily in additional full and fractional shares of the Money Market
Fund. Dividends of ordinary income from the Capital Appreciation Stock
Fund, Growth and Income Stock Fund, Bond Fund, and Balanced Fund will
be declared and reinvested quarterly in additional full and fractional
shares of the respective funds. All net realized capital gains of these
funds, if any, will be declared and reinvested at least annually. The
Treasury 2000 Fund will utilize an annual consent dividend procedure
which provides the Fund with the deduction for dividends constructively
paid to shareholders. During 1995 the Treasury 2000 Series reclassified
$105,588 of undistributed net investment income into additional paid-in
capital as a result of a consent dividend process.
(c) Federal Income and Excise Taxes
The Ultra Series Fund intends to distribute all of its taxable income
and to comply with the other requirements of the Internal Revenue Code
applicable to regulated investment companies. Accordingly, no provision
for income or excise taxes is required.
(d) Other
Security transactions are recorded on the trade date basis. Realized
gains and losses from security transactions are reported on the
identified cost basis. Interest, including amortization of premium and
discount, is accrued daily and dividend income is recorded on the
ex-dividend date.
46
<PAGE>
(e) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of increase
and decrease in net assets from operations during the period. Actual
results could differ from those estimates.
(3) Purchase and Sales of Investment Securities
The cost of securities purchased and the proceeds from securities sold
(including maturities, excluding short-term securities for all funds except
Money Market) for each fund during the year ended December 31, 1995, were
as follows:
<TABLE>
<CAPTION>
Capital Growth and Money Treasury
Appreciation Income Stock Balanced Bond Market 2000
Stock Fund Fund Fund Fund Fund Fund
---------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Total costs of securities purchased 36,043,321 74,801,837 58,644,587 6,257,222 104,918,148 $ --
========== =========== =========== ========== =========== ========
Total proceeds received on security
sales and principal paydowns 13,157,907 40,626,106 30,316,916 1,257,169 101,900,757 $ --
========== =========== =========== ========== =========== ========
</TABLE>
(4) Transactions with Affiliates
The Ultra Series Fund has entered into an investment advisory agreement
with Century Investment Management Co. (the Investment Adviser), an
affiliated company. During 1995, the Investment Adviser received monthly
advisory or advisory/administrative fees, based on average daily net
assets, at an annual rate of .5 percent of the Capital Appreciation Stock,
Growth and Income Stock, Balanced, Bond and Money Market Funds and .45
percent of the Treasury 2000 Fund.
Expenses of the Ultra Series Fund are accrued daily. Each fund bears the
expenses directly attributable to its own investments. Such expenses
include, but are not limited to, brokerage and other commission costs,
legal fees relating to the enforcement of rights under a specific
investment owned by the fund and expenses related to defense of claims made
solely against the fund. However, certain expenses from shared resources
are allocated to the various funds on the basis of the net assets of the
respective funds as determined each day. These expenses include Trustees,
accountants, legal, investment management and other general and
administrative expenses. As a result of sharing these resources, the funds
are expected to experience cost savings over the aggregate amount that
would be payable if each fund were a separate mutual fund. There can be no
assurance, however, that such savings will be realized.
The Investment Adviser is required to reimburse the funds for the amount,
if any, by which the aggregate expenses of any fund (including the
Investment Adviser's fee, but excluding brokerage commissions, interest,
taxes, and extraordinary expenses) in any calendar year exceed 2.0 percent
of the average daily net assets of the funds. In addition, Century Life of
America has voluntarily agreed to reimburse the Capital Appreciation Stock,
Growth and Income Stock, Balanced, Bond and Money Market Funds for ordinary
business expenses in excess of .65 percent (of which .5 percent is the
advisory fee and .15 percent is general and administrative expenses) of the
average daily net assets of these funds. Also, the Investment Adviser has
agreed to assume responsibility for providing all administrative services
and paying all ordinary business expenses of the Treasury 2000 Fund which
exceed .45 percent (all of which is the advisory/administrative fee) of
average daily net assets. Currently, Century Life of America and CUNA
Mutual Insurance Society, affiliated companies, are providing
administrative services on behalf of the Adviser.
47
<PAGE>
During the year ended December 31, 1995, Century Life of America
voluntarily reimbursed expenses for each of the funds in the following
amounts:
Capital Appreciation Stock Fund...............$22,806
Bond Fund......................................$3,971
Growth and Income Stock Fund..................$28,817
Money Market Fund..............................$7,705
Balanced Fund.................................$33,518
All capital shares outstanding at December 31,1995, are owned by separate
investment accounts of Century Life of America.
Certain officers and directors of the Ultra Series Fund are also officers
of Century Life of America or Century Investment Management Co. During the
year ended December 31, 1995, the Ultra Series Fund made no direct payments
to its officers and paid trustees' fees of approximately $8,500.00 to its
unaffiliated trustees.
(5) Share Activity
Transactions in shares of each fund for the years ended December 31, 1995
and 1994, were as follows:
<TABLE>
<CAPTION>
Capital Growth and Money Treasury
Appreciation Income Stock Balanced Bond Market 2000
Stock Fund Fund Fund Fund Fund Fund
---------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Shares outstanding at December 31, 1993 -- 2,093,707 3,969,329 595,097 4,749,492 180,966
Share sold, including reinvestment
of dividends 964,787 1,322,730 1,687,122 351,808 11,676,731 841
Shares repurchased (17,362) (167,734) (425,576) (133,385) (8,626,862) --
--------- --------- --------- -------- ---------- -------
Shares outstanding at December 31, 1994 947,425 3,248,703 5,230,875 813,520 7,799,361 181,807
--------- --------- --------- -------- ---------- -------
Share sold, including reinvestment
of dividends 2,337,211 2,621,441 2,823,694 657,600 16,747,785 43,617
Shares repurchased (238,086) (259,097) (469,326) (179,841) (13,173,017) (42,878)
--------- --------- --------- -------- ---------- -------
Shares outstanding at December 31, 1995 3,046,550 5,611,047 7,585,243 1,291,279 11,374,129 182,546
-------- --------- --------- -------- ---------- -------
</TABLE>
48
<PAGE>
ULTRA SERIES FUND
INDEPENDENT AUDITORS' REPORT
The Trustees and Shareholders
Ultra Series Fund:
We have audited the statements of assets and liabilities, including the
schedules of investments in securities, of the Capital Appreciation Stock Fund,
Growth and Income Stock Fund, Balanced Fund, Bond Fund, Money Market Fund, and
Treasury 2000 Fund of the Ultra Series Fund as of December 31, 1995, and the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period then ended,
and financial highlights for each of the years in the five-year (two years for
Capital Appreciation Stock Fund) period then ended. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Investment securities held in custody were confirmed to us by the
custodian. As to securities purchased or sold, but not received or delivered, we
request confirmation from brokers, and where replies are not received, we
carried out other appropriate audit procedures. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Capital Appreciation Stock Fund, Growth and Income Stock Fund, Balanced Fund,
Bond Fund, Money Market Fund, and Treasury 2000 Fund of Ultra Series Fund as of
December 31, 1995, the results of their operations for the year then ended, the
changes in their nets assets for each of the years in the two-year period then
ended, and the financial highlights for each of the years in the five-year (two
years for Capital Appreciation Stock Fund) period then ended, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Des Moines, Iowa
February 16, 1996
49
<PAGE>
ULTRA SERIES FUND
Officers and Trustees
<TABLE>
<CAPTION>
OFFICERS BOARD OF TRUSTEES
<S> <C>
Michael S. Daubs, President Gwendolyn M. Boeke
Lawrence R. Halverson, Vice President/Secretary Alfred L. Disrud
Donald Heltner, Vice President Kevin T. Lentz
Michael G. Joneson, Chief Accounting Officer, Treasurer and Assistant Secretary Keith S. Noah
Robert M. Buckingham, Chief Financial Officer/Assitant Secretary Thomas C. Watt
</TABLE>
50
<PAGE>
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