CARILLON
FUND, INC.
Semiannual
Report
June 30, 1998
<PAGE>
CARILLON FUND, INC.
SEMIANNUAL REPORT - A MESSAGE FROM THE PRESIDENT
============================================================
June 30, 1998
We are pleased to present the Semiannual Report for Carillon
Fund, Inc. The performance of our Equity and Capital Portfolios
has been disappointing so far this year, but we believe the
smaller capitalization stocks we own represent excellent
relative value that will produce better performance when
markets become more fundamentally based. The Carillon Bond
Portfolio has had an outstanding performance level during
1998's first half, adding to an already great longer-term
record. The S&P 500 Index Portfolio has performed nicely and in
line with the underlying Stock Index, producing strong returns
that have reflected the market's preference for larger
capitalization stocks during 1998's first half.
ECONOMY AND FINANCIAL MARKETS -- The U.S. economy continued its
strength during the first quarter of 1998, producing one of its
stronger growth periods of the current expansionary phase.
Second quarter growth showed at least a temporary slowdown from
the first quarter's torrid pace, as exports weakened in
response to Asia's problems and inventory levels tempered
manufacturing output. Inflation has remained low in 1998, with
only minor hints that it may rise from the current 2 percent
range. Some inflation pressure has occurred from low
unemployment and rising labor costs, but not enough for the
Federal Reserve Board to raise short-term interest rates or
economists to raise their inflation forecasts.
The combination of a strong economy, low inflation, and stable
interest rates has kept the major market averages of the U.S.
stock market moving higher again in 1998's first half. However,
the difference with prior periods has been that corporate
profits are no longer rising sharply on an aggregate basis. Net
operating profits have risen at only a very low single digit
level during the last six months. With corporate earnings being
a prime mover of stock prices, it is surprising that common
stock prices have advanced so strongly. Rising labor costs not
being passed on in higher prices and more competition from
countries with lower valued currencies appear to be the primary
reasons for lackluster earnings growth on the part of many U.S.
corporations. Although stocks suffered a brief setback in May
and early June, investors have focused on large capitalization
U.S. stocks as the place to be in this environment.
The bond market saw longer term interest rates head lower
during the first half, as inflation remained low, government
spending under control, and the U.S. treasury market benefitted
from a safe-haven status during several bouts of concern over
economic developments in Asia and other emerging markets.
VALUATION LEVELS -- I believe the U.S. stock market is more
richly priced, compared with historical valuation levels, than
at any time this century. Ratios of stock prices to earnings,
cash flow, sales, Gross Domestic Product, book value,
replacement cost of assets, and dividends are at all-
time highs. This doesn't mean that stocks will decline any time
soon, but it does mean favorable interest rate and corporate
earnings pictures need to remain in place to support further
advances, and short-term price risks are high. Bond prices
seem in line with the fundamentals of low inflation and slow-
to-moderate economic growth which I expect. Therefore, bonds
should continue to produce modest returns close to their
interest rate levels.
OUTLOOK -- Although the first six months of 1998 have not
proven me correct, I believe the underlying economic
fundamentals favor the opportunities in selective smaller
capitalization stocks. Earnings growth has remained strong for
many companies whose stocks remain in the more normal 10-to-15
times earnings range. I believe our stock portfolios are well
positioned in these reasonably valued equities and will benefit
at such time as when more normal conditions return to the
financial markets.
PORTFOLIO MANAGEMENT CHANGE -- Our Capital Portfolio has
changed portfolio managers and its tactics for managing an
asset allocation fund. Although the Portfolio's investment
objectives have not change, the new managers, Michelle Stevens
and Gary Rodmaker, are putting more emphasis on individual
security selection and have brought the portfolio's asset
allocation among stocks and fixed income securities back closer
to the average for this type of fund.
Individual portfolio reports for all Carillon portfolios are
included within this report. Carillon Advisers is determined to
provide excellent money management and service related to all
portfolios. We want each Contract Owner to feel confident that
investing with Carillon Fund, Inc. is a prudent, long-term
decision.
Sincerely,
/s/ George L. Clucas
George L. Clucas, President
Carillon Fund, Inc.
July 29, 1998
This report has been prepared for Contract owners and is not
authorized for distribution to prospective purchasers of
contracts unless it is preceded or accompanied by an effective
prospectus for Carillon Fund, Inc.
<PAGE>
Carillon Fund, Inc.
EQUITY PORTFOLIO
The Carillon Equity Portfolio's performance so far this year
has been disappointing to us and our investors. However, we
believe that our current stock holdings represent excellent
value that will provide better relative investment performance
over the next year. The Equity Portfolio's strategy has
remained disciplined to finding companies with superior
profitability and growth at below market valuations. This
proven strategy has recently led us to more smaller, under-
followed stocks. While our performance has lagged the major
stock averages, the Carillon Equity Portfolio has performed
close to other funds investing in smaller capitalization
issues. We are slightly behind the Russell 2000 Small Cap
Index, but have produced better results than the average
Morningstar Small Capitalization Value Fund.
Much of the lower performance versus the major market averages
relates to holding smaller capitalization stocks that have recently
not kept pace with larger company stocks. We believe these
circumstances will change due to the following reasons:
1. Smaller capitalization stocks have historically provided
higher returns than large capitalization stocks over the
long-term due to greater growth and more flexible
strategies.
2. Economic fundamentals favor smaller capitalization stocks
even more than normal. Prudential Securities points out
that on factors such as Price to Earnings and Price to
Book Values, smaller stocks are currently 15-to-25 percent
below normal relative valuation versus larger stocks.
The Carillon Equity Portfolio is comprised of the stocks of
companies with better performing fundamentals than the market as
measured by the S&P 500 Index. As illustrated by the following
table, we own more profitable and faster growing companies, and we
are paying less for the earnings of these companies.
<TABLE>
<CAPTION>
PRICE/ EARNINGS REVENUE
RETURN ON EARNINGS GROWTH GROWTH
EQUITY RATIO 3-YR. AVG. 5-YR. AVG.
<S> <C> <C> <C> <C>
EQUITY PORTFOLIO 17% 15 18% 24%
S&P 500 INDEX 16% 21 12% 8%
</TABLE>
Energy stocks, particularly oil field service stocks, represent a
significant holding in the Portfolio. We find this sector
particularly attractive given the increasing worldwide demand for
energy, especially natural gas, the accelerating depletion of the
world's current producing wells, the supply shortage of equipment to
meet the projected drilling demand, and the low stock prices in
relation to replacement value of the equipment. These stocks have
underperformed, however, during the first half of the year in
sympathy with lower crude oil prices, despite the fact that about 70
percent of drilling in the Gulf of Mexico is for natural gas. We
believe these stocks will rebound sharply during the second half as
energy prices stabilize and investors seek companies with stronger
earnings growth in a more difficult economic environment.
Real Estate Investment Trusts (REITs) represent another area we
think is undervalued. In a market of richly valued stocks, many
REITs trade at or below the value of their underlying real estate
assets despite having economies of scale, professional management,
attractive financing alternatives, and development pipelines. The
stocks also provide high yields averaging about 7 1/2 percent.
Other stocks owned by the Portfolio include a variety of companies
in manufacturing and retail businesses which display the financial
characteristics of good profitability, strong growth, and low
relative valuations.
We strongly believe our disciplined approach will return our
Portfolio to favor. Emotions drive stocks for short periods of time,
but earnings and financial performance make stocks worth something
in the long run. We believe earnings and financial performance are
on our side.
<PAGE>
Carillon Fund, Inc.
EQUITY PORTFOLIO
Summary
- ---------------------------------------------------------
OBJECTIVE: Seeks long-term appreciation of capital by
investing in common stocks and other equity
securities with values that are, at present,
not fully recognized by the market.
STRATEGY: The Equity Portfolio will remain in a highly
invested position ranging from 86% to 98%. The
cash position will be held in highly liquid
money market instruments to meet redemptions
and to provide cash for future stock purchases
as new opportunities arise.
INCEPTION: August 15, 1984
MANAGERS: George Clucas; Michelle Stevens
- ---------------------------------------------------------
Highlights
On June 30, 1998, the Equity Portfolio had net assets of
$336,714,887 and diversified holdings of:
Common Stocks 91.24%
Short-Term and Other 8.76%
As an investor in the Carillon Equity Portfolio, for every $1
you had invested on June 30, 1998, your fund owned:
(the following percentages are graphically represented as
portions of a dollar bill)
Real Estate 11.09%
Financials 14.11%
Consumer Nondurable 9.05%
Consumer Cyclical 9.67%
Capital Goods 4.97%
Technology 11.50%
Energy/Utilities 14.81%
Manufacturing 11.46%
Short-Term and Other 8.76%
Transportation 3.66%
Service 0.92%
Top Ten Holdings
- ---------------------------------------------------------
1. Lindsay Manufacturing Company
2. FPIC Insurance Group, Incorporated
3. Cybex Corporation
4. ICN Pharmaceuticals Incorporated
5. Vtech Holdings Limited
6. Medusa Corporation
7. Stanley Furniture Company
8. NCI Building Systems Incorporated
9. Midwest Express Holding
10. Raymond James Financial
*International holdings comprised 7.0% of net assets in the
Equity Portfolio.
<PAGE>
Carillon Fund, Inc.
CAPITAL PORTFOLIO
The first half of 1998 was a difficult period for the Capital
Portfolio. The Portfolio did not have a high enough allocation
to stocks and was not in the right market sectors during the
period. The Capital Portfolio's diversified investment
principles should, in theory, enhance the long-term risk/reward
characteristics of the portfolio by counterbalancing risks of
individual securities. Stock diversification in the Capital
Portfolio included owning international stocks, precious metal
stocks, and real estate related issues, as well as traditional
U.S. stocks. These investments negatively impacted recent fund
performance.
Effective May 1, 1998 there was a change in portfolio
management of the Capital Portfolio. Concurrent with this
shift in management, changes have taken place. The objective
of the Portfolio has not changed -- "to seek the highest total
return by investing in a mix of stocks, bonds and money market
securities." However, the investment strategy of the fund will
differ from previous management. The Portfolio will normally
allocate its assets approximately 55-65% stocks, 30-45% bonds,
and small amounts to money market instruments. As market
conditions dictate, the Capital Portfolio may reposition its
asset mix to take advantage of existing opportunities, but
deviations from these ranges are expected to be small and
typically short in duration. Undervalued domestic growth stocks
will comprise the core of the Portfolio's stock position. The
strategy for the bond portion of the Portfolio will emphasize
individual security selection, sector rotation, yield curve
analysis, and diversification to achieve its objective of
beating the Lehman Aggregate Bond Index.
The following table outlines the asset allocation of the
Capital Portfolio. The asset allocation has become more
aggressive, with 60% allocated to stocks, 39% allocated to
bonds, and 1% allocated to money market securities. This
represents a significantly larger allocation to stocks, a
similar allocation to bonds, and a smaller allocation to cash
than in the recent past. With regard to sector allocation for
stocks, foreign issues, real estate investment trusts,
precious metal holdings, and closed-end bond funds have been
reduced in favor of undervalued domestic equities. These
changes, however, occurred late in the reporting period with
the change in portfolio management.
<TABLE>
<CAPTION>
CAPITAL PORTFOLIO ASSET ALLOCATION
6/30/98 12/31/97 6/30/97
------- -------- -------
<S> <C> <C> <C>
Stocks 60% 39% 35%
Bonds 39% 39% 40%
Money Market 1% 22% 25%
---- ---- ----
Total 100% 100% 100%
==== ==== ====
</TABLE>
TOP TEN HOLDINGS
1. S & P 500 Depository Receipts
2. Diamonds Trust Series I
3. ECI Telecommunications
4. D.R. Horton Inc.
5. Comair Holdings Inc.
6. Dawson Geophysical Co.
7. Duff & Phelps Credit Rating Co.
8. NCI Building Systems Inc.
9. Lindsay Manufacturing, Inc.
10. Scientific Games Holdings Corp.
<PAGE>
Carillon Fund, Inc.
CAPITAL PORTFOLIO
Summary
- ---------------------------------------------------------
OBJECTIVE: Seeks high total return by investing in a mix of
stocks, bonds and money market securities at the
discretion of the portfolio manager.
STRATEGY: When the investment climate is near long-term
historical relationships, the portfolio will
allocate its assets approximately 63% stocks, 30%
bonds, and 7% money market instruments. As market
conditions dictate, the Capital Portfolio
repositions its asset mix to take advantage of
existing opportunities.
INCEPTION: May 1, 1990
MANAGER: Michelle Stevens and Gary R. Rodmaker (effective
May 1, 1998)
- ---------------------------------------------------------
Highlights
On June 30, 1998, the Capital Portfolio had net assets of
$145,125,957 and diversified holdings of:
<TABLE>
<CAPTION>
12/31/97 12/31/96 Long-Term
<S> <C> <C> <C>
Common Stocks 61.75% 38.6% 63%
Bonds and Notes 38.66% 39.6% 30%
Short-Term and Other -.41% 21.8% 7%
</TABLE>
As an investor in the Carillon Capital Portfolio, for every $1
you had invested on June 30, 1998, your fund owned:
(the following percentages are graphically represented as
portions of a dollar bill)
U.S. Stocks 60.61%
International Stocks 1.14%
U.S. Government and Agency Securities 6.61%
Corporate Bonds 25.19%
Short-Term and Other -.41%
Morgtgage-Backed, Collateralized Mortgage Obligations and
Asset-Backed Securities 6.86%
<PAGE>
Carillon Fund, Inc.
BOND PORTFOLIO
The first half of 1998 was characterized by falling interest
rates primarily driven by slowing worldwide economies, led by
Asia, and the stable rate of inflation in the United States.
During the first quarter of 1998, domestic GDP grew at 5.5%.
However, by the end of the second quarter, GDP growth had
slowed to 1.4% as the effects of the recession in Asia spilled
over to the U.S. economy. Slowing worldwide economies, and
the associated reduced demand for goods and services, have
caused commodity prices to plummet. The price of commodities
such as crude oil, chemicals, pulp & paper, and metals are all
down substantially compared to a year ago. Lower commodity
prices, in turn, have and will continue to keep a lid on
inflation in the near term.
Interest rates fell across all maturities during the first half
of 1998, with the greatest drop coming in longer dated
maturities. For example, the yield of the 2-year U.S. Treasury
dropped from 5.64% to 5.48%, while the yield of the 30-year
U.S. Treasury dropped from 5.92% to 5.63% during the period.
Meanwhile, spreads on corporate and mortgage-backed securities
widened slightly as corporate investors worried about the
effects of an economic slowdown and mortgage-backed investors
worried about an increased amount of refinancing in a lower
interest rate environment. Altogether, the first half of 1998
provided fixed income investors solid, but not stellar,
performance with the Lehman Brothers Aggregate Bond Index
posting a total return of 3.93% for the period.
The Bond Portfolio continued its strong performance in the 1st
half of 1998, outperforming both its peer group and the broader
market indices. In the Lipper Analytical Variable Insurance
Products Performance Analysis Service Underlying Funds Report,
the Bond Portfolio's performance was ranked #1 of 32 funds in
its category based on total return performance for the first
half of 1998. In addition, the Bond Portfolio ranks #1 of 27
funds for the last 3 years, #2 of 25 funds for 5 years, and #3
of 18 funds for 10 years. This superior performance can be
attributed to active sector allocation and individual security
selection. Past performance is no guarantee of future results.
Portfolio Quality Distribution
(Pictured here is a pie graph depicting the following
percentages:
AAA 0.5%
AA 2.00%
A 11.9%
BBB 26.6%
BB & Less 24.2%
U.S. Treasury and Agency 34.8%
<PAGE>
Carillon Fund, Inc.
BOND PORTFOLIO
Summary
- ---------------------------------------------------------
Objective: Seeks a high level of current income, without
undue risk to principal, by investing in long-term,
fixed-income investment-grade corporate bonds.
STRATEGY: The Portfolio intends to invest at least 75% of the
value of its assets in publicly-traded straight
debt securities which have a rating within the four
highest grades as rated by a national rating agency.
Up to 25% of the portfolio may be invested in
convertible debt securities, convertible preferred
and preferred stock, or other securities.
INCEPTION: August 15, 1984
MANAGERS: Steven Sutermeister
- ---------------------------------------------------------
Highlights
On June 30, 1998, the Bond Portfolio had net assets of
$120,171,832 and diversified holdings of:
Bonds 94.00%
Short-Term and Other 6.00%
As an investor in the Carillon Bond Portfolio, for every $1 you
had invested on June 30, 1998, your fund owned:
(the following percentages are graphically presented as
portions of a dollar bill)
Corporate Bonds 51.22%
Mortgage-Backed, Collateralized Mortgage Obligations and
Asset-Backed Securities 14.41%
U.S. Treasuries 28.37%
Short-Term and Other 6.00%
<PAGE>
Carillon Fund, Inc.
S&P 500 INDEX PORTFOLIO
During the first half of 1998, the S&P 500 Index gained almost
18%, with the majority of the gain occurring in the first
quarter. Once again, the S&P 500 Index outperformed the vast
majority of active equity portfolio managers. This has become
a recurring theme over the last several years and is
continuing in 1998. The Carillon S&P 500 Index Portfolio has
capitalized on this trend and continues to be the fastest
growing fund managed by Carillon Advisers. Year to date, the
Portfolio's assets have grown from $55.6 million to $96.1
million, an increase of 72.8%. The flow of funds into the
Portfolio continues to increase as individuals recognize the
strong performance the Portfolio has provided since its
December 29, 1995 inception. The larger portfolio size will
continue to drive down the already low expense ratio of the
Portfolio.
For the first half of 1998, the S&P 500 Index gained an
impressive 17.71%, while the Carillon S&P 500 Index Portfolio
gained 17.70%. This is on top of a 32.72% return in 1997 and
a 23.37% return in 1996. The combination of low management
fees, limited transaction costs, and superior performance
continues to attract investors.
The primary objective of the S&P 500 Index Portfolio is to
produce a return that corresponds to the total return of the
S&P 500 Index. The focus of the portfolio manager is to
monitor and minimize the difference between the return of the
Portfolio and the return of the underlying S&P 500 Index before
fees and expenses. This objective was clearly met in the first
half of 1998 as the difference in return was -.01%. This is
excellent since the Portfolio incurred approximately .22% in
fees and expenses during the period.
The Portfolio contains a combination of stocks, futures
contracts, and S&P Depository Receipts ("SPDR's") which are
designed to produce a return that is highly correlated with the
return of the S&P 500 Index. The stocks included in the
Portfolio are properly weighted by name and industry to produce
the desired results. The Portfolio currently holds 450 of the
500 names contained in the Index. The futures contracts and
SPDR's contained in the Portfolio are used primarily to manage
incoming cash flows. The Portfolio has maintained a 99.9%
correlation with the underlying S&P 500 Index for the first
half of 1998 and since inception.
As the second half of 1998 unfolds, we will endeavor to build
upon the success that we have had in the first half of the
year. We expect the Portfolio to continue its rapid growth as
investors recognize the benefits of indexing all or a portion
of their equity investments. Although no one knows the
direction stocks will take in the future, we are confident that
we can, and will, continue to provide a return that closely
correlates with the S&P 500 Index.
Top Ten Holdings
- ----------------------------------------------------
1. General Electric Company
2. Microsoft Corporation
3. Coca-Cola Company
4. Exxon Corporation
5. Merck & Company
6. Pfizer Incorporated
7. Wal-Mart Stores Incorporated
8. Procter & Gamble
9. Intel Corporation
10. Royal Dutch Petroleum
<PAGE>
Carillon Fund, Inc.
S&P INDEX PORTFOLIO
Summary
- ---------------------------------------------------------
OBJECTIVE: Seeks investment results that correspond to the
total return performance of U.S. common stocks, as
represented by the Standard & Poor's 500 Composite
Stock Index (the "S&P 500").
STRATEGY: The Index Portfolio will remain fully invested in
stocks included in the S&P 500 and in futures
contracts on the Index. The cash position will be
held in highly liquid money market instruments to
meet redemptions and to provide cash for future
stock purchases.
INCEPTION: December 29, 1995
MANAGER: Gary R. Rodmaker
- ---------------------------------------------------------
Highlights
On June 30, 1998, the S&P 500 Index Portfolio had net assets of
$96,566,755 and diversified holdings of:
Common Stocks 92.20%
Short-Term and Other 7.80%
As an investor in the Carillon S&P 500 Index Portfolio, for
every $1 you had invested on June 30, 1998, your fund owned:
(the following percentages are graphically represented as
portions of a dollar bill)
Transportation 1.07%
Banking and Financial Service 16.56%
Service 1.03%
Capital Goods 7.29%
Technology 13.41%
Consumer Cyclical 8.10%
Manufacturing 4.48%
Consumer Nondurable 24.09%
Short-Term, Futures and Other 7.80%
Energy 6.81%
Utilities 9.36%
"Standard & Poor's(R)", "S&P(R)", "Standard & Poor's 500", and
"500" are trademarks of The McGraw-Hill Companies, Inc. and
have been licensed for use by Carillon Fund, Inc. The Product
is not sponsored, endorsed, sold or promoted by Standard &
Poor's and Standard & Poor's makes no representation regarding
the advisability of investing in the Product.
<PAGE>
Carillon Fund, Inc.
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
S&P 500
Equity Capital Bond Index
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
ASSETS
Investments in
securities, at value $337,410,821 $145,860,088 $115,443,936 $96,071,858
(cost $284,333,592;
$146,505,534;
$111,212,294;
$73,187,653)
Cash -- -- -- 21,465
Receivables:
Shares sold 521,062 93,530 2,959,933 488,875
Securities sold 2,330,980 569,318 -- --
Interest and dividends 401,167 866,667 1,975,753 90,576
Prepaid expenses
and other 20,509 8,415 6,585 9,012
------------ ------------ ------------ -----------
340,684,539 147,398,018 120,386,207 96,681,786
LIABILITIES
Payables:
Investment securities
purchased 3,629,358 1,321,794 -- --
Shares redeemed -- 596,994 -- --
Investment advisory
fees 320,570 170,050 92,514 42,244
Custodial and portfolio
accounting fees 12,967 12,976 4,990 3,335
Professional fees 4,429 8,161 8,935 5,484
Bank overdraft -- 159,570 -- --
Variation margin -- -- -- 52,250
Other accrued expenses 2,328 2,516 2,458 11,718
Deferred compensation
for directors -- -- 105,478 --
------------ ------------ ------------ -----------
3,969,652 2,272,061 214,375 115,031
------------ ------------ ------------ -----------
NET ASSETS
Paid-in capital 256,493,645 141,280,985 113,800,514 73,246,104
Undistributed net
investment income 620,109 284,123 497,241 79,660
Accumulated net
realized gain/(loss)
of investments 26,523,904 4,206,295 1,642,435 208,711
Net unrealized
appreciation 53,077,229 (645,446) 4,231,642 23,032,280
of investments ------------ ------------ ------------ -----------
$336,714,887 $145,125,957 $120,171,832 $96,566,755
============ ============ ============ ===========
Shares authorized
($.10) par value 40,000,000 30,000,000 30,000,000 30,000,000
Shares outstanding 18,392,577 11,224,802 10,529,458 5,378,384
Net asset value,
offering, and
redemption price
per share $18.31 $12.93 $11.41 $17.95
</TABLE>
The accompanying notes are an integral part of
the financial statement.
<PAGE>
Carillon Fund, Inc.
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Ended June 30, 1998
(Unaudited)
S&P 500
Equity Capital Bond Index
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 850,808 $ 2,636,955 $4,036,858 $ 134,215
Dividends (net of
foreign withholding
taxes of $134,407;
$56,147; $0; $5,706) 2,327,524 605,763 181,630 532,640
----------- ----------- ---------- -----------
3,178,332 3,242,718 4,218,488 666,855
----------- ----------- ---------- -----------
EXPENSES
Investment advisory fees 942,292 496,608 255,436 112,790
Custodial fees
and expenses 37,740 19,970 12,348 8,523
Portfolio accounting fees 27,138 21,952 21,437 17,605
Professional fees 3,661 7,991 4,030 3,426
Director's fees 5,729 5,729 6,233 5,755
Transfer agent fees 3,615 3,670 4,263 3,299
Registration
and filing fees (212) (217) 151 67
Other 19,603 14,064 8,286 4,471
----------- ----------- ---------- -----------
1,039,566 569,767 312,184 155,936
----------- ----------- ---------- -----------
NET INVESTMENT INCOME 2,138,766 2,672,951 3,906,304 510,919
----------- ----------- ---------- -----------
REALIZED AND UNREALIZED
GAIN/(LOSS)
Net realized gain on
investments 26,550,606 4,192,027 1,660,548 300,479
----------- ----------- ---------- -----------
Net realized gain on
futures contracts -- -- -- 67,550
----------- ----------- ---------- -----------
26,550,606 4,192,027 1,660,548 368,029
----------- ----------- ---------- -----------
Net change in unrealized
appreciation/
(depreciation) of
investments (18,093,981) (9,389,428) 372,048 10,901,599
Net change in unrealized
appreciation/
(depreciation) of futures
contracts -- -- -- 100,625
----------- ----------- ---------- -----------
(18,093,981) (9,389,428) 372,048 11,002,224
----------- ----------- ---------- -----------
NET REALIZED AND
UNREALIZED GAIN/(LOSS) 8,456,625 (5,197,401) 2,032,596 11,370,253
----------- ----------- ---------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS $10,595,391 $(2,524,450) $5,938,900 $11,881,172
=========== =========== ========== ===========
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
Carillon Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Equity Portfolio
- ----------------
For the For the
Six Months Year Ended
Ended June 30, December 31,
-------------- ------------
(Unaudited)
1998 1997
------------ ------------
<S> <C> <C>
OPERATIONS
Net investment income $ 2,138,766 $ 3,840,384
Net realized gain on investments and futures 26,550,606 43,526,118
Net change of unrealized appreciation/
(depreciation) on investments and futures
contracts, and translation of assets and
liabilities in foreign currencies. (18,093,981) 10,788,049
------------ ------------
10,595,391 58,154,551
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (1,750,357) (4,343,382)
Net realized gain on investments (43,531,579) (34,344,113)
------------ ------------
(45,281,936) (38,687,495)
------------ ------------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 23,231,123 27,675,023
Reinvestment of distributions 45,281,936 38,687,495
Payments for shares redeemed (32,739,087) (38,325,837)
------------ ------------
35,773,972 28,036,681
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 1,087,427 47,503,737
NET ASSETS
Beginning of period 335,627,460 288,123,723
------------ ------------
End of period
$336,714,887 $335,627,460
============ ============
FUND SHARE TRANSACTIONS:
Sold 1,174,383 1,441,326
Reinvestment of distributions 2,387,701 2,276,903
Redeemed (1,660,408) (2,041,013)
------------ ------------
Net increase (decrease) from
fund share transactions 1,901,676 1,677,216
============ ============
</TABLE>
The accompanying notes are an integral part of the
financial statements.
Carillon Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Capital Portfolio
- -----------------
For the For the
Six Months Year Ended
Ended June 30, December 31,
-------------- ------------
(Unaudited)
1998 1997
------------ ------------
<S> <C> <C>
OPERATIONS
Net investment income $ 2,672,951 $ 6,609,920
Net realized gain on investments and futures 4,192,027 7,443,577
Net change of unrealized appreciation/
(depreciation) on investments and futures
contracts, and translation of assets and
liabilities in foreign currencies. (9,389,428) (2,869,048)
------------ ------------
(2,524,450) 11,184,449
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (2,849,751) (7,176,810)
Net realized gain on investments (7,315,800) (12,519,532)
------------ ------------
(10,165,551) (19,696,342)
------------ ------------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 20,655,421 12,291,701
Reinvestment of distributions 10,165,551 19,696,342
Payments for shares redeemed (21,834,884) (33,940,166)
------------ ------------
8,986,088 (1,952,123)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (3,703,913) (10,464,016)
NET ASSETS
Beginning of year 148,829,870 159,293,886
End of year $145,125,957 $148,829,870
============ ============
FUND SHARE TRANSACTIONS:
Sold 1,512,294 867,273
Reinvestment of distributions 757,494 1,450,496
Redeemed (1,603,907) (2,414,218)
------------ ------------
Net increase (decrease) from
fund share transactions 665,880 (96,449)
============ ============
</TABLE>
The accompanying notes are an integral part of the
financial statements.
Carillon Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Bond Portfolio
- --------------
For the For the
Six Months Year Ended
Ended June 30, December 31,
-------------- ------------
(Unaudited)
1998 1997
------------ ------------
<S> <C> <C>
OPERATIONS
Net investment income $ 3,906,304 $ 6,405,311
Net realized gain on investments
and futures 1,660,548 1,127,264
Net change in unrealized appreciation/
(depreciation) on investments and
futures contracts, and translation
of assets and liabilities in
foreign currencies. 372,048 1,821,402
------------ -----------
5,938,900 9,353,977
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (3,681,173) (5,860,151)
Net realized gain on investments (1,121,637) (481,254)
------------ -----------
(4,802,810) (6,341,405)
------------ -----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 33,790,976 19,937,289
Reinvestment of distributions 4,802,809 6,341,405
Payments for shares redeemed (19,450,139) (15,033,299)
------------ -----------
19,143,646 11,245,395
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS 20,279,736 14,257,967
NET ASSETS
Beginning of year 99,892,096 85,634,129
------------ -----------
End of year $120,171,832 $99,892,096
============ ===========
FUND SHARE TRANSACTIONS:
Sold 2,949,302 1,786,820
Reinvestment of distributions 424,638 575,269
Redeemed (1,695,923) (1,358,088)
------------ -----------
Net increase (decrease) from
fund share transactions 1,678,017 1,004,001
============ ===========
</TABLE>
The accompanying notes are an integral part of
the financial statements.
Carillon Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
S & P 500 Index Portfolio
- -------------------------
For the For the
Six Months Year Ended
Ended June 30, December 31,
-------------- ------------
(Unaudited)
1998 1997
----------- -----------
<S> <C> <C>
OPERATIONS
Net investment income $ 510,919 $ 640,069
Net realized gain on investments and futures 368,029 1,839,946
Net change of unrealized appreciation/
(depreciation) on investments and futures
contracts, and translation of assets
and liabilities in foreign currencies. 11,002,224 8,999,183
----------- -----------
11,881,172 11,479,198
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (470,924) (642,656)
Net realized gain on investments (1,947,719) (270,297)
----------- -----------
(2,418,643) (912,953)
----------- -----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 31,558,194 35,592,857
Reinvestment of distributions 2,418,643 912,953
Payments for shares redeemed (2,467,280) (20,681,996)
----------- -----------
31,509,557 15,823,814
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS 40,972,086 26,390,059
NET ASSETS
Beginning of year 55,594,669 29,204,610
------------ -----------
End of year $96,566,755 $55,594,669
=========== ===========
FUND SHARE TRANSACTIONS:
Sold 1,849,550 2,463,755
Reinvestment of distributions 139,082 66,017
Redeemed (141,206) (1,406,317)
----------- -----------
Net increase (decrease) from
fund share transactions 1,847,426 1,123,455
=========== ===========
</TABLE>
The accompanying notes are an integral part of the
financial statements.
<PAGE>
Carillon Fund, Inc.
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(Unaudited)
EQUITY PORTFOLIO
<TABLE>
<CAPTION>
COMMON STOCKS - 90.68%
SHARES VALUE
-----------------
<S> <C> <C>
BANKING & FINANCIAL SERVICE - 14.11%
Allied Capital Corporation 33,639 $ 824,156
Amresco, Incorporated* 75,000 2,184,375
ARM Financial Group, Incorporated* 100,000 2,212,500
Banco BHIF ADR 220,000 3,286,250
Banco Latinoamericano De Exportanciones
Sponsored ADR* 75,000 2,306,250
Charter One Financial, Incorporated 110,250 3,714,047
Chile Fund, Incorporated* 100,000 1,356,250
Corvel Corporation* 66,000 2,574,000
Duff & Phelps Credit Rating Company 65,000 3,623,750
Fahnestock Viner Holdings 150,000 2,906,250
First Bell Bancorp, Incorporated 100,000 1,912,500
FPIC Insurance Group, Incorporated* 172,500 5,800,300
Hamilton Bancorp, Incorporated* 100,000 3,603,125
Jefferies Group, Incorporated 105,000 4,301,359
Raymond James Financial Corporation 148,725 4,452,455
UICI* 90,000 2,452,500
------------
47,510,067
------------
CAPITAL GOODS - 4.97%
AGCO Corporation 59,400 1,221,413
Friede Goldman International, Incorporated* 100,000 2,887,500
Gulf Island Fabrication, Incorporated* 103,000 1,931,250
Lindsay Manufacturing Company 227,689 6,176,064
LSI Industries 100,000 2,000,000
Unifab International, Incorporated* 155,000 2,518,750
------------
16,734,977
------------
CONSUMER CYCLICAL - 9.67%
CPAC, Incorporated* 200,000 1,925,000
Footstar, Incorporated* 85,000 4,080,000
Maxwell Shoe Comapny, Incorporated* 167,500 3,329,063
NCI Building Systems, Incorporated 80,700 4,660,425
Stanley Furniture Company 183,800 4,663,925
Strattec Security Corporation* 145,000 4,368,125
Supreme International Corporation* 162,500 2,660,938
Tarrant Apparel Group 190,000 3,586,250
Toll Brothers* 115,000 3,299,063
------------
32,572,789
------------
CONSUMER NON-DURABLE - 9.05%
Anchor Gaming* 53,000 4,114,125
Cellstar Corporation* 150,000 1,940,625
Charoen Pok Feedmill ADR* 100,000 330,959
Complete Management, Incorporated* 175,000 689,063
Dairy Farm International Holdings
Sponsored ADR* 200,000 1,070,000
Equity Marketing, Incorporated* 105,500 2,228,688
Gymboree Corporation* 130,000 1,970,313
ICN Pharmeaceuticals, Incorporated 119,900 5,477,931
Laboratorio Chile ADR 156,700 2,252,563
National Health Investors, Incorporated 40,000 1,325,000
Orthofix International N.V.* 125,536 1,631,968
Schlotzsky's, Incorporated* 156,900 2,510,400
Scientific Games Holdings Corporation* 146,100 3,360,300
Young Innovations, Incorporated* 101,000 1,552,875
------------
30,454,810
------------
ENERGY - 14.81%
Atwood Oceanics, Incorporated* 55,000 2,189,688
Basin Exploration, Incorporated* 185,000 3,260,625
Bayard Drilling Technologies* 275,000 2,234,375
Callon Petroleum Company* 165,000 2,361,563
Cliffs Drilling Company* 75,000 2,460,938
Comstock Resources, Incorporated* 330,000 2,454,375
Cross Timbers Oil Company 157,500 3,002,344
Domain Energy Corporation* 175,000 2,100,000
Giant Industries, Incorporated 140,000 2,432,500
Global Industries, Incorporated* 62,500 1,054,688
Marine Drilling Company, Incorporated* 210,000 3,360,000
Maverick Tube Corporation* 110,000 1,278,750
Newfield Exploration Company* 14,800 368,150
Offshore Logistics, Incorporated* 145,300 2,579,075
OYO Geospace Corporation* 20,000 550,000
Plains Resources, Incorporated* 119,500 2,136,063
Pride International, Incorporated* 160,000 2,710,000
R & B Falcon Corporation* 80,000 1,810,000
Southern Mineral Corporation* 350,000 1,203,125
Stone Energy Corporation* 63,000 2,240,438
Superior Energy Services, Incorporated* 240,000 1,215,000
Veritas DGC, Incorporated* 50,000 2,496,875
YPF S.A. Sponsored ADR 145,400 4,371,088
------------
49,869,660
------------
MANUFACTURING - 11.46%
Carbide Graphite Group, Incorporated* 101,000 2,809,063
De Beers Consolidated Mines ADR 125,000 2,187,500
D.R. Horton, Incorporated* 190,000 3,966,250
Elamex S.A. De C.V.* 86,600 514,188
Fibermark, Incorporated* 115,000 1,840,000
Giant Cement Holding, Incorporated* 58,500 1,674,563
Keystone Consolidated Industries,
Incorporated* 88,000 1,045,000
Matthews International Corporation - Class A 154,000 3,782,625
Medusa Corporation 80,300 5,038,825
Mueller Industries 60,000 2,227,500
Northwest Pipe Company* 125,800 2,956,300
Omniquip International, Incorporated 218,000 4,033,000
STB Systems, Incorporated 180,000 2,250,000
Sybron Chemicals, Incorporated* 60,500 1,936,000
Triangle Pacific Corporation* 42,500 2,337,500
------------
38,598,314
------------
REAL ESTATE - 11.09%
Associated Estates Realty Corporation 105,000 1,962,188
Camden Property Trust 44,022 1,309,655
City Developments Limited 250,000 698,425
Commercial Net Lease Realty 99,300 1,607,419
Felcor Suite Hotels 78,600 2,466,075
Gables Residential Trust 70,000 1,898,750
Healthcare Realty Trust 96,400 2,626,900
Horizon Group Properties 6,500 42,859
Hospitality Properties Trust 64,000 2,056,000
Lexington Corporation Properties Trust 100,000 1,462,500
Merry Land & Investment Company 115,000 2,422,188
Mid-America Apartment Communities 80,000 2,105,000
Mills Corporation 75,000 1,800,000
Omega Healthcare Investors, Incorporated 30,000 1,053,750
Pacific Gulf Properties 74,000 1,600,250
Parkway Properties, Incorporated 42,000 1,239,000
Prime Retail, Incorporated 130,000 1,551,875
RFS Hotel Investors, Incorporated 15,700 298,300
Trinet Corporate Realty Trust, Incorporated 80,000 2,720,000
United Dominion Realty Trust, Incorporated 168,000 2,331,000
United Investor Realty Trust, Incorporated* 200,000 1,900,000
Winston Hotels, Incorporated 175,000 2,187,500
------------
37,339,634
------------
SERVICE - .92%
Kevco, Incorporated* 140,000 3,088,750
------------
TECHNOLOGY - 10.94%
AFC Cable Systems, Incorporated* 100,000 3,550,000
Axiohm Technology* 11,438 117,240
Cybex Corporation* 240,000 5,520,000
ECI Telecommunications 106,100 4,018,538
ESC Medical Systems Limited* 60,000 2,025,000
Nam Tai Electronics, Incorporated* 250,000 3,765,625
Performance Technologies, Incorporated* 115,500 1,299,375
Recoton Corporation* 113,100 3,788,850
SPSS, Incorporated* 107,500 2,499,375
Vertex Communications Corporation* 104,000 2,444,000
Vtech Holdings Limited* 142,900 5,320,539
Xircom, Incorporated* 160,000 2,490,000
------------
36,838,542
------------
TRANSPORTATION - 3.66%
Comair Holdings, Incorporated 120,000 3,705,000
Gulfmark Offshore, Incorporated* 68,000 1,547,000
Midwest Express Holdings* 123,750 4,478,203
Trico Marine Services* 190,000 2,600,625
------------
12,330,828
------------
Total Common Stocks (cost $251,887,355) 305,338,371
------------
FOREIGN STOCK - .56%
HONG KONG
Smartone Telecommunications* 775,000 1,890,347
------------
Total Foreign Stock (cost $2,264,134)
<CAPTION>
SHORT-TERM INVESTMENTS - 8.97%
PRINCIPAL VALUE
<S> <C> <C>
COMMERCIAL PAPER - 5.63%
ConAgra Incorporated
(5.650% due 08/17/98) $3,000,000 2,977,871
Countrywide Home Loans
(5.650% due 07/16/98) 3,000,000 2,992,938
DuPont (E.I.) DeNemours
(5.530% due 08/04/98) 2,000,000 1,989,554
Ford Motor Credit Company
(5.500% due 07/02/98) 5,000,000 4,999,236
Lucent Technologies (5.460% due 07/02/98) 3,000,000 2,999,545
Raytheon Company (5.650% due 07/23/98) 3,000,000 2,989,642
------------
18,948,786
------------
VARIABLE RATE DEMAND NOTES<F1> - 2.23%
Firstar Bank (5.660% due 12/31/31) 3,942,802 3,942,802
General Mills, Inc. (5.265% due 12/31/31) 840,443 840,443
Johnson Controls (5.265% due 12/31/31) 2,119,360 2,119,360
Pitney Bowes Credit Corp
(5.265% due 12/31/31) 590,679 590,679
------------
7,493,284
------------
US TREASURY/ AGENCY - 1.11%
Federal Home Loan Bank
(5.760% due 07/08/98) 3,740,000 3,740,033
------------
Total Short-Term Investments
(cost $30,182,103) 30,182,103
------------
TOTAL INVESTMENTS - 100.21%
(cost $284,333,592)<F2> 337,410,821
------------
OTHER ASSETS AND LIABILITIES - (.21)% (695,934)
------------
TOTAL NET ASSETS - 100% $336,714,887
============
____________
*Non-income producing
(ADR) American Depository Receipt
<FN>
<F1> Interest rates vary periodically based on current market rates. The
maturity shown for each variable rate demand note is the later of the next
scheduled interest rate adjustment date or the date on which principal can
be recovered through demand. Information as of June 30 1998.
<F2> Represents cost for Federal income tax purposes. Gross unrealized
appreciation and depreciation of securities at June 30,1998 or financial
reporting purposes was $83,216,990 and ($30,139,761).
</FN>
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
Carillon Fund, Inc.
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
CAPITAL PORTFOLIO
COMMON STOCKS - 60.61% SHARES/
PRINCIPAL VALUE
------------------
<S> <C> <C>
BANKING & FINANCIAL SERVICE - 7.70%
AFP Provida S.A. 80,000 $ 1,335,000
Amresco, Incorporated* 56,000 1,631,000
Banco BHIF ADR 73,000 1,090,438
Duff & Phelps Credit Rating Company 37,000 2,062,750
Fahnestock Viner Holdings Class A 92,000 1,782,500
Jefferies Group, Incorporated 40,000 1,638,544
Texas Regional Bancshares-A 50,000 1,637,500
------------
11,177,732
------------
CAPITAL GOOD - 6.24%
AGCO Corporation 73,000 1,501,063
Gardner Denver, Incorporated* 70,000 1,933,750
Gulf Island Fabrication, Incorporated* 83,500 1,565,625
Lindsay Manufacturing, Incorporated 74,043 2,008,416
LMI Aerospace, Incorporated* 124,000 1,241,250
Unifab International, Incorporated* 50,000 812,500
------------
9,062,604
------------
CONSUMER CYCLICAL -3.75%
NCI Building Systems, Incorporated* 35,000 2,021,250
Nemark Homes Corporation* 160,000 1,660,000
Winsloew Furniture, Incorporated* 65,000 1,755,000
------------
5,436,250
------------
CONSUMER NON-DURABLE - 7.70%
Anchor Gaming* 24,000 1,863,000
Cellstar Corporation 120,000 1,552,500
Charoen Pok Feedmill ADR* 69,225 229,106
Complete Management, Incorporated* 175,000 689,063
ESC Medical Systems Limited* 58,000 1,957,500
ICN Pharmaceuticals, Incorporated 32,000 1,462,000
Schlotzsky's, Incorporated* 88,500 1,416,000
Scientific Games Holdings Corporation* 87,000 2,001,000
------------
11,170,169
------------
ENERGY - 10.04%
Basin Exploration, Incorporated* 69,000 1,216,125
Callon Petroleum Company* 35,000 500,938
Cliffs Drilling Company* 40,000 1,312,500
Cross Timbers Oil Company 41,175 784,898
Dawson Geophysical Company* 110,000 2,090,000
Domain Energy Corporation* 48,000 576,000
Giant Industries, Incorporated 92,400 1,605,450
Marine Drilling Company, Incorporated* 65,000 1,040,000
Maverick Tube Corporation* 34,000 395,250
Miller Exploration Company* 187,000 1,449,250
OYO Geospace Corporation* 21,500 591,250
Pride International, Incorporated* 71,000 1,202,563
YPF S.A. Sponsored ADR 60,000 1,803,750
------------
14,567,974
------------
MANUFACTURING - 5.66%
D.R. Horton, Incorporated* 110,000 2,296,250
DeBeers Consolidated Mines ADR 32,000 560,000
Fibermark, Incorporated* 45,000 720,000
Northwest Pipe Company* 79,600 1,870,600
Omniquip International, Incorporated 86,000 1,591,000
York Group, Incorporated 62,000 1,178,000
------------
8,215,850
------------
REAL ESTATE - 2.95%
Pacific Gulf Properties 43,500 940,688
Parkway Properties, Incorporated 35,000 1,032,500
St. Joe Company 44,500 1,218,188
Trinet Corporate Realty Trust 32,000 1,088,000
------------
4,279,376
------------
TECHNOLOGY - 6.38%
Cybex Corporation* 55,000 1,265,000
ECI Telecommunications 92,000 3,484,500
Nam Tai Electronics, Incorporated 77,333 1,164,828
Vertex Communications Corporation* 76,000 1,786,000
Vtech Holdings Limited 42,000 1,563,769
------------
9,264,097
------------
TRANSPORTATION - 1.49%
Comair Holdings, Incorporated* 70,000 2,161,250
------------
UNIT INVESTMENT TRUST - 8.70%
Diamonds Trust Series I 65,000 5,829,688
S & P Depository Receipt 60,000 6,798,747
------------
12,628,435
------------
Total Common Stocks
(cost $89,640,217) 87,963,737
------------
FOREIGN COMMON STOCK - 1.14%
HONG KONG - .89%
Smartone Telecommunications* 310,000 756,139
Techtronic Industries* 2,617,800 540,548
------------
1,296,687
------------
MALAYSIA - .25%
Bumi Armada Berhad* 500,000 361,664
------------
Total Foreign Common Stock
(cost $1,699,759) 1,658,351
------------
U.S. TREASURY OBLIGATIONS - 6.61%
7.875% due 11/15/04 $4,000,000 4,492,500
6.750% due 04/30/00 5,000,000 5,104,690
------------
9,597,190
------------
Total U.S. Treasury Notes ($9,385,363) 9,597,190
------------
COLLATERALIZED MORTGAGE
OBLIGATIONS - 4.21%
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 1.72%
1662 H (6.250% due 01/15/09) 489,526 485,169
1559 VP (5.500% due 02/15/20) 1,700,000 1,676,540
1399 PAC (7.000% due 09/15/22) 333,427 333,706
------------
2,495,415
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 1.07%
Remic 93-163 PN
(7.000% due 07/25/07) 1,500,000 1,547,932
------------
PRIVATE SECTOR - 1.42%
GE Capital Mortgage Services, Inc.
(6.000% due 08/25/09) 517,137 505,506
Prudential Home Mortgage Securities
(7.500% due 07/25/10) 479,751 491,035
MSC 1998-WF 1(7.120% due 01/15/08) 1,000,000 1,070,270
----------
2,066,811
------------
Total Collateralized Mortgage
Obligations (cost $5,835,187) 6,110,158
------------
MORTGAGE - BACKED SECURITIES - 1.93%
FEDERAL HOME LOAN MORTGAGE
CORPORATION - .66%
7.500% due 06/01/07 $ 33,830 34,148
9.500% due 10/01/08 148,595 156,992
8.250% due 03/01/12 89,704 92,787
8.500% due 03/01/16 69,148 72,294
7.500% due 07/01/17 29,871 30,524
11.000% due 04/01/19 31,439 35,212
11.000% due 11/01/19 52,654 58,974
11.000% due 05/01/20 156,301 174,995
11.000% due 06/01/20 274,680 307,630
------------
963,556
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 0.99%
9.500% due 09/01/05 101,518 106,748
9.000% due 11/01/05 34,557 36,170
8.000% due 05/01/07 99,621 102,812
5.500% due 01/01/09 737,076 720,013
5.500% due 04/01/09 482,154 470,645
------------
1,436,388
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 0.28%
9.000% due 11/15/16 80,033 86,518
10.500% due 11/20/19 198,863 216,604
9.000% due 12/15/19 91,213 98,390
------------
401,512
------------
Total Mortgage Backed Securities
(cost $2,664,418) 2,801,456
------------
ASSET - BACKED SECURITY - .72%
PaineWebber Mtg. Accpt. 96 M1 E
(7.655% due 01/02/12) 1,005,805 1,051,066
------------
Total Asset-Backed Securities
(cost $1,041,397) 1,051,066
------------
CORPORATE BONDS AND NOTES - 25.19%
AIR TRANSPORTATION - 1.57%
America West Airlines
(6.850% due 07/02/09) $ 297,112 298,687
Continental Airlines
(8.560% due 07/02/14) 948,930 1,061,378
Delta Airlines
(9.375% due 09/11/07) 813,958 924,844
------------
2,284,909
------------
BANKING & FINANCIAL SERVICE - 1.46%
AB Spintab (7.500% due 08/14/49) 1,000,000 1,042,968
Credit Suisse (7.900% due 05/01/07) 1,000,000 1,069,185
------------
2,112,153
------------
COMMUNICATIONS AND MEDIA - 1.96%
News American Holdings
(8.500% due 02/15/05) 1,600,000 1,772,009
Viacom Inc. Sr. Nt.
(7.750% due 06/01/05) 1,000,000 1,069,804
------------
2,841,813
------------
ELECTRIC - 1.57%
New Orleans Public Service Inc. 1st Mtg. 1,200,000 1,202,217
(8.670% due 04/01/05)
Niagra Mohawk Power (8.000% due 06/01/04) 1,000,000 1,079,670
------------
2,281,887
------------
FOOD, BEVERAGE & TOBACCO - 1.56%
Philip Morris Cos, Inc. Nt
(7.500% due 04/01/04) 1,200,000 1,261,935
RJR Nabisco (8.250% due 07/01/04) 1,000,000 1,001,131
------------
2,263,066
------------
INSURANCE - .69%
Fairfax Financical Holdings
(6.875% due 04/15/08) 1,000,000 1,003,673
------------
MANUFACTURING - 2.75%
Alliance Laundry Systems
(9.625% due 05/01/08) $ 500,000 501,250
Blount Inc. (7.000% due 06/15/05) 1,000,000 978,887
Federal-Mogul Co (7.750% due 07/01/06) 500,000 500,000
Idex Corp (6.875% due 02/15/08) 1,000,000 1,000,403
IMC Global Nt. (6.550% due 01/15/05) 1,000,000 1,003,628
------------
3,984,168
------------
MISCELLANOUS - .64%
Lowen Group International, Inc.
(8.250% due 04/15/03) 900,000 934,889
------------
OIL & GAS - 2.57%
Citgo Petroleum (7.875% due 05/15/06) 1,000,000 1,079,798
Gulf Canada Res. (8.350% due 08/01/06) 1,500,000 1,642,458
Union Pacific Resource Inc.
(6.750% due 05/15/08) 1,000,000 1,005,245
------------
3,727,501
------------
REAL ESTATE - 1.54%
Camden Properties (7.000% due 11/15/06) 500,000 509,104
Colonial Realty LP (6.960% due 07/26/04) 700,000 713,625
Healthcare Properties Notes
(6.875% due 06/08/08) 1,000,000 1,012,422
------------
2,235,151
------------
SUPERMARKET - 1.73%
American Stores Company
(6.500% due 03/20/08) 1,000,000 1,016,133
Fred Meyer, Inc.
(7.450% due 03/01/08) 1,000,000 1,002,108
Pueblo Xtra International
(9.500% due 08/01/03) 500,000 487,500
------------
2,505,741
------------
TECHNOLOGY - .69%
Lexmark International
(6.750% due 05/15/08) 1,000,000 1,001,671
------------
TELECOMMUNICATION - 2.94%
TCI Communications, Inc.
(8.650% due 09/15/04) 1,000,000 1,121,973
Comcast Cellular Holdings
(9.500% due 05/01/07) 1,000,000 1,042,500
Crown Castle Sr. Nt.
(0.000% due 11/15/07) $1,500,000 1,023,750
Qwest Communications Nt
(0.000% due 02/01/08) 1,500,000 1,080,000
------------
4,268,223
------------
UTILITIES - 3.52%
Cal Energy (7.630% due 10/15/07) 1,000,000 1,002,556
Enersis (6.600% due 12/01/26) 1,500,000 1,497,188
NRG Energy (7.500% due 06/15/07) 1,000,000 1,054,264
TE Products Pipeline
(7.510% due 01/15/28) 1,500,000 1,552,156
------------
5,106,164
------------
Total Corporate Bonds (cost $ 36,112,072) 36,551,009
------------
SHORT-TERM INVESTMENTS - .09%
VARIABLE RATE DEMAND NOTES <F1> - .09%
Firstar Bank (5.660% due 12/31/31) $ 127,121 127,121
------------
Total Short Term Investments
(cost $127,121) 127,121
------------
TOTAL INVESTMENTS - 100.50%
(cost $146,505,534)<F2> 145,860,088
OTHER ASSETS AND LIABILITIES - (.50%) (734,131)
------------
TOTAL NET ASSETS - 100% $145,125,957
============
- ----------
*Non-income producing
(ADR) American Depository Receipt
<FN>
<F1> Interest rates vary periodically based on current market rates.
Rates shown are as of June 30, 1998. The maturity shown for each variable
rate demand note is the later of the next scheduled interest rate
adjustment date or the date on which principal can be recovered through
demand. Information shown is as of June 30, 1998.
<F2> Gross unrealized appreciation and depreciation of securities at
June 30, 1998 for financial reporting purposes was $9,363,132 and
($10,008,578) respectively; tax amounts were substantially the same.
</FN>
</TABLE>
The accompanying notes are an integral part of the
financial statements.
<PAGE>
Carillon Fund, Inc.
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
BOND PORTFOLIO
<TABLE>
<CAPTION>
U.S. TREASURY OBLIGATIONS - 28.37%
PRINCIPAL VALUE
------------------
<S> <C> <C>
U.S. TREASURY NOTES - 28.37%
6.000% due 10/15/99 $4,000,000 $ 4,022,500
0.000% due 02/15/00 3,250,000 2,974,432
6.750% due 04/30/00 2,000,000 2,041,876
7.750% due 02/15/01 2,500,000 2,633,595
0.000% due 08/15/02 2,000,000 1,600,920
5.875% due 11/15/05 5,000,000 5,096,875
5.625% due 02/15/06 5,000,000 5,020,315
7.000% due 07/15/06 5,000,000 5,462,500
6.250% due 02/15/07 5,000,000 5,237,500
----------
34,090,513
----------
Total U.S. Treasury Obligations
(cost $32,966,191) 34,090,513
----------
MORTGAGE - BACKED SECURITIES - 1.88%
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 0.63%
7.500% due 02/01/02 26,527 27,198
9.500% due 04/01/05 50,130 52,872
7.500% due 06/01/07 74,456 75,156
11.000% due 05/01/10 6,927 7,659
12.500% due 08/01/10 12,956 14,734
8.000% due 11/01/16 43,206 44,570
9.500% due 02/01/18 74,426 79,008
6.500% due 07/01/23 460,154 460,955
----------
762,152
----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 1.14%
12.000% due 04/01/00 19,842 21,392
9.000% due 08/01/01 28,523 29,869
8.500% due 01/01/02 34,611 36,028
10.500% due 06/01/04 8,547 9,122
10.500% due 05/01/05 166,134 177,296
6.500% due 06/01/08 889,594 895,964
8.000% due 08/01/17 189,888 196,415
----------
1,366,086
----------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 0.11%
11.000% due 03/15/10 58,260 63,740
9.000% due 05/15/20 67,312 72,023
----------
135,763
----------
Total Mortgage-Backed Securities
(cost $2,195,160) 2,264,001
----------COLLATERALIZED MORTGAGE
OBLIGATIONS - 5.25%
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 2.37%
59 E (8.900% due 11/15/20) 951,381 $ 992,180
106 G (8.250% due 12/15/20) 1,000,000 1,043,230
1770 B (8.250% due 01/15/24) 814,936 818,207
----------
2,853,617
----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 0.12%
9.500% due 12/25/18 137,569 145,819
----------
PRIVATE SECTOR - 2.76%
Securitized Asset
Sales, Inc. 1993-2 B2
(6.500% due 07/25/08) 276,627 276,223
CMC2 Securities Corp.
1993 E 1 E 1CP
(0.000% due 12/25/08) 316,452 251,925
Country Wide Mortgage-Backed
Securities, Inc. 1994 - 8B1
(6.000% due 03/01/09) 798,706 781,454
Capstead Mortgage Securities
Corp. C-4
(10.950% due 02/01/14) 143,804 143,804
NSCOR 1996 - 5 B1
(8.000% due 11/25/26) 1,641,421 1,694,022
MSC 1998 - 1PO
(0.000% due 03/25/28 261,054 167,401
3,314,829
----------
Total Collateralized Mortgage
Obligations (cost $6,065,699) 6,314,265
----------
ASSET - BACKED SECURITIES - 7.28%
COMMERCIAL MORTGAGE-BACKED
SECURITIES- 5.61%
Chase Commercial Mortgage
Sec. (6.600% due 12/19/07) 2,609,885 2,510,396
MSC 1998 - WF1 (7.120% due 01/15/08) 2,000,000 2,140,540
Paine Webber Mortgage
Acceptance 96 M1 E
(7.655% due 01/02/12) 2,000,000 2,090,000
----------
6,740,936
----------
HOME EQUITY - 1.67%
Ditech Home Loan Owner Trust
(7.250% due 06/15/21) 2,000,000 2,000,620
----------
Total Asset Backed Securities
(cost $8,597,970) 8,741,556
----------
CORPORATE BONDS AND NOTES - 51.22%
AIR TRANSPORTATION - 1.81%
Continental Airlines
(7.820% due 10/15/23) 961,096 1,040,156
NWA Trust No. 2 Class B
(10.230% due 06/21/14) 913,846 1,138,780
2,178,936
----------
ALUMINUM MANUFACTURING - 1.11%
Kaiser Aluminum & Chemical Sr. Notes
(12.750% due 02/01/03) 1,250,000 1,328,125
----------
BANK & BANK HOLDING COMPANIES - 4.55%
Ahmanson Capital Trust
(8.360% due 12/01/26) 1,500,000 1,671,643
NationsBank Corp.
(7.625% due 04/15/05) 1,000,000 1,080,115
Svenska Handelsbanken
(7.125% due 03/07/07) 1,000,000 1,029,461
Zions Trust (8.536% due 12/15/26) 1,500,000 1,683,484
----------
5,464,703
----------
ENTERTAINMENT & LEISURE - 1.29%
Royal Caribbean (7.000% due 10/15/07) 1,500,000 1,551,426
----------
ENVIRONMENTAL SERVICES - 0.91%
Allied Waste North America
(10.250% due 12/01/06) 1,000,000 1,095,000
FINANCE COMPANIES - 0.67%
Arcadia Financial
(11.500% due 03/15/07) 800,000 802,000
----------
FOOD, BEVERAGE, & TOBACCO - 2.99%
Fresh Food, Inc.
(10.750% due 06/01/06) 1,000,000 1,000,000
Great American Cookie Company
(10.875% due 01/15/01) 500,000 517,500
Nabisco Inc. (7.550% due 06/15/15 ) 1,000,000 1,076,077
RJR Nabisco, Inc.
(7.625% due 09/15/03) 1,000,000 993,804
----------
3,587,381
----------
FOREIGN SOVEREIGN - 0.84%
Republic Of South Africa Notes
(8.375% due 10/17/06) 1,000,000 1,010,000
----------
GAMING INDUSTRY - 3.62%
Alliance Gaming
(10.000% due 08/01/07) 1,000,000 997,500
Argosy Gaming (13.2500% due 06/01/04) 1,000,000 1,125,000
Casino Magic of Louisiana
(13.000% due 08/15/03) 1,000,000 1,150,000
Empress River Casino Finance Corp.
(10.750% due 04/01/02) 1,000,000 1,080,000
----------
4,352,500
----------
GAS DISTRIBUTION - 2.86%
All Star Gas Corp.
(7.000% due 07/15/04) 1,000,000 910,000
Costilla Energy Sr. Notes
(10.250% due 10/01/06) 1,000,000 1,015,000
Louis Dreyfus Notes
(6.875% due 12/01/07) 1,500,000 1,511,727
----------
3,436,727
----------
HEALTH CARE - 1.31%
Universal Health Services Sr. Notes
(8.750% due 08/15/05) 1,500,000 1,575,000
----------
INSURANCE - 3.69%
Farmers Insurance Exchange
(8.500% due 08/01/04) 1,000,000 1,104,709
Leucadia National Corp.
(8.250% due 06/15/05) 1,000,000 1,088,198
Prudential Ins. Surplus Notes
(8.100% due 07/15/15) 1,000,000 1,116,936
USF&G Capital (8.470% due 01/10/27) 1,000,000 1,127,667
----------
4,437,510
----------
MANUFACTURING - 3.22%
Alliance Laundry Systems
(9.625% due 05/01/08) 2,250,000 2,255,625
International Knife & Saw Corp.
(11.375% due 11/15/06) 1,000,000 1,060,000
International Wire Group Inc.
(11.750% due 06/01/05) 500,000 548,125
----------
3,863,750
----------
MEDIA & CABLE - 5.72%
CF Cable TV Inc.
(9.125% due 07/15/07) 1,000,000 1,114,000
Continental Cablevision
(8.300% due 05/15/06) 1,000,000 1,106,991
Jacor Communications Sr. Notes
(8.000% due 02/15/10) 1,000,000 1,010,000
Jones Intercable, Inc.
(8.875% due 04/01/07) 500,000 535,000
Spanish Broadcasting Systems
(11.000% due 03/15/04) 1,000,000 1,080,000
Tri-State Outdoor Media
(11.000 due 05/15/08) 2,000,000 2,025,000
----------
6,870,991
----------
MEDIA CONGLOMERATE - 3.51%
News American Holdings
(6.625% due 01/09/08) 1,500,000 1,493,773
Time Warner Inc.
(8.110% due 08/15/06) 1,500,000 1,651,147
Viacom Inc. Sr. Notes
(7.750% due 06/01/05) 1,000,000 1,069,804
----------
4,214,724
----------
OIL & GAS - SERVICES - 1.48%
Mitchell Energy Development Corp.
(6.750% due 02/15/04) 1,750,000 1,776,881
----------
PAPER & FOREST PRODUCT - 1.03%
Indah Kiat Sr. Notes
(10.000% due 07/01/07) 1,000,000 707,500
Westvaco Corp.
(10.300% due 01/15/19) 500,000 529,770
----------
1,237,270
----------
RETAIL - 0.43%
Pamida Inc. Sr. Notes
(11.750% due 03/15/03) 500,000 517,500
----------
REAL ESTATE - 2.61%
Colonial Properties Sr. Notes
(8.050% due 07/15/06) 1,500,000 1,617,418
Healthcare Properties Notes
(6.875% due 06/08/05) 1,500,000 1,518,633
----------
3,136,051
----------
SUPERMARKET - 0.81%
Pueblo Xtra International
(9.500% due 08/01/03) 1,000,000 975,000
----------
TELECOMMUNICATIONS - 5.71%
360 Communications Sr. Notes
(7.500% due 03/01/06) 1,500,000 1,607,215
Call-Net Enterprises
(0.000% due 12/01/04) 1,250,000 1,193,750
Crown Castle Sr. Notes
(0.000% due 11/15/07) 1,000,000 682,500
Nextel Communications, Inc.
(0.000% due 09/15/07) 1,500,000 1,008,750
Talton Holdings Inc. Sr. Notes
(11.000% due 06/30/07) 1,000,000 1,075,000
Triton Communications, LCC Sr. Notes
(0.000% due 05/01/08) 2,300,000 1,293,750
----------
6,860,965
----------
UTILILY - FOREIGN - 1.05%
Tenega Nasional Berhad Notes
(7.625% due 04/29/07) 1,500,000 1,259,386
----------
Total Corporate Bond and Notes
(cost $59,347,963) 61,531,826
----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS - 0.51%
PACKAGING - 0.51%
Earthshell Container Corporation <F1> 63,360 617,760
----------
Total Common Stocks (cost $241,832) 617,760
----------
WARRANTS AND RIGHTS - 0.07%
FOOD, BEVERAGE, & TOBACCO - 0.00%
Great American Cookie Warrants 90 900
CAPITAL GOODS - .07%
Terex Corporation Appreciation Rights 4,000 88,136
----------
Total Warrants and Rights
(cost $ 2,500) 89,036
----------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
SHORT TERM INVESTMENTS - 1.49%
VARIABLE RATE DEMAND
NOTES <F2> - 1.49%
Johnson Controls Inc.
(5.265% due 12/31/31) 973,804 973,804
Firstar Bank (5.660% due 12/31/31) 821,175 821,175
----------
1,794,979
----------
Total Short-Term Investments
(cost 1,794,979) 1,794,979
----------
TOTAL INVESTMENTS - 96.07%
(cost $111,212,294)<F3> 115,443,936
-----------
OTHER ASSETS AND LIABILITIES - 3.93% 4,727,896
-----------
TOTAL NET ASSETS - 100.00% $120,171,832
============
- ------------
* Non-Income Producing
<FN>
<F1> Shares are restricted and cannot be traded until January 1999.
<F2> Interest rates vary periodically based on current market rates.
Rates shown are as of June 30, 1998. The maturity shown for each
variable rate demand note is the later of the next scheduled interest
adjustment date or the date on which principal can be recovered through
demand. Information shown is as of June 30, 1998.
<F3> Gross unrealized appreciation and depreciation of securities at June
30, 1998 for financial reporting purposes was $5,034,319 and ($802,677);
tax amounts were substantially the same.
</FN>
</TABLE>
The accompanying notes are an integral part of the
financial statments.
<PAGE>
Carillon Fund, Inc.
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
S&P 500 INDEX PORTFOLIO
COMMON STOCKS - 92.20%
SHARES VALUE
------------------
<S> <C> <C>
BANKING & FINANCIAL SERVICE - 16.56%
Aetna Life and Casualty Company 1,500 $ 114,188
Ahmanson (H.F.) & Company 1,100 78,100
Allstate (The) Corporation 4,400 402,875
American Express Company 4,600 524,400
American General Corporation 2,500 177,969
American International Group, Incorporated 7,100 1,036,600
Aon Corporation 1,800 126,450
Associates First Capital Corporation 3,451 265,296
Banc One Corporation 6,500 362,781
Bank of New York Company, Incorporated 3,800 230,613
BankAmerica Corporation 6,900 596,419
Bankboston Corporation 2,800 155,750
Bankers Trust Corporation 1,000 116,063
BB&T Corporation 1,400 94,675
Beneficial Corporation 500 76,594
Charles Schwab Corporation 2,600 84,500
Chase Manhattan Corporation 8,600 649,300
Chubb Corporation 1,700 136,638
CIGNA Corporation 2,200 151,800
Cincinnati Financial Corporation 1,700 65,238
Citicorp 4,500 671,625
Comerica, Incorporated 1,650 109,313
Conseco, Incorporated 1,900 88,825
Countrywide Credit Industries, Incorporated 1,100 55,825
Fannie Mae 10,600 643,950
Federal Home Loan Mortgage Corporation 6,900 324,731
Fifth Third Bancorp 2,350 148,050
First Chicago NBD Corporation 2,800 248,150
First Union Corporation 9,754 568,171
Fleet Financial Group, Incorporated 2,700 225,450
Franklin Resources, Incorporated 2,700 145,800
General Re Corporation 800 202,800
Golden West Financial 600 63,788
Green Tree Financial Corporation 1,400 59,938
Hartford Financial Services Group 1,200 137,250
Household International, Incorporated 3,300 164,175
Huntington Bancshares 2,000 67,000
Jefferson-Pilot Corporation 1,250 72,422
KeyCorp 4,400 156,750
Lehman Brothers Holdings 1,000 77,563
Lincoln National Corporation 1,000 91,375
Loews Corporation 1,100 95,838
Marsh & McLennan Companies, Incorporated 2,550 154,116
MBIA, Incorporated 1,100 82,363
MBNA Corporation 5,100 168,300
Mellon Bank Corporation 2,500 174,063
Mercantile Bancorporation 1,400 70,525
Merrill Lynch & Company 3,400 313,650
MGIC Investment Corporation 1,100 62,769
Morgan (J. P.) & Company 1,700 199,113
Morgan Stanley, Dean Witter & Company 5,900 539,113
National City Corporation 3,400 241,400
NationsBank Corporation 9,400 719,100
Northern Trust Corporation 1,100 83,875
Norwest Corporation 7,600 284,050
PNC Bank Corporation 3,000 161,438
Progressive Corporation 700 98,700
Providian Financial Corporation 900 70,706
Republic New York Corporation 1,200 75,525
SAFECO Corporation 1,400 63,525
State Street Corporation 1,600 111,200
St. Paul Companies 2,364 99,436
Summit Bancorp 1,700 80,750
SunAmerica, Incorporated 2,000 114,875
SunTrust Banks, Incorporated 2,100 170,756
Synovus Financial Corporation 3,450 81,938
Torchmark Corporation 1,500 68,625
Transamerica Corporation 600 69,075
Travelers Group, Incorporated 11,400 691,125
UNUM Corporation 1,400 77,700
U.S. Bancorp 7,500 322,500
Wachovia Corporation 2,100 177,450
Washingon Mutual, Incorporated 3,750 162,891
Wells Fargo & Company 900 332,100
-----------
15,987,790
-----------
CAPITAL GOODS - 7.29%
Minnesota Mining & Manufacturing Company 4,100 336,969
AlliedSignal, Incorporated 5,700 252,938
AMP, Incorporated 2,300 79,063
Avery Dennison Company 1,000 53,750
Boeing Company 10,100 450,081
Briggs & Stratton Corporation 300 11,231
Browning-Ferris Industries 2,000 69,500
Case Equipment 800 38,600
Caterpillar, Incorporated 3,800 200,925
Cincinnati Milacron, Incorporated 600 14,588
Cooper Industries, Incorporated 1,300 71,419
Deere & Company 2,500 132,188
Dover Corporation 2,400 82,200
EG& G, Incorporated 600 18,000
Emerson Electric Company 4,500 271,688
Fluor Corporation 900 45,900
Foster Wheeler Corporation 500 10,719
General Dynamics Corporation 1,300 60,450
General Electric Company 32,800 2,984,745
Grainger (W.W.), Incorporated 1,000 49,813
Honeywell, Incorporated 1,300 108,631
Illinois Tool Works, Incorporated 2,500 166,719
Ingersoll-Rand Company 1,700 74,906
Johnson Controls, Incorporated 900 51,469
Lockheed Martin Corporation 2,000 211,750
NACCO Industries-Class A 100 12,925
Northrop Grumman Corporation 700 72,188
Pall Corporation 1,300 26,650
PACCAR, Incorporated 800 41,800
Parker-Hannifin Corporation 1,100 41,938
Perkin-Elmer Corporation 500 31,094
Raychem Corporation 900 26,606
Sealed Air Corporation* 575 21,131
Tektronix, Incorporated 600 21,225
Tenneco, Incorporated 1,800 68,513
Thermo Electron Corporation* 1,600 54,700
Thomas & Betts Corporation 700 34,475
Tyco International Limited 5,800 365,400
United Technologies Corporation 2,300 212,750
Waste Management, Incorporated 4,600 161,000
-----------
7,040,637
-----------
CONSUMER CYCLICAL - 8.10%
Abercrombie & Fitch Company* 32 1,408
American Greetings Company ClasA 800 40,750
AutoZone, Incorporated* 1,600 51,100
Black & Decker Corporation 1,000 61,000
Brunswick Corporation 1,100 27,225
Consolidated Stores Corporation* 1,100 39,875
Costco Companies, Incorporated* 2,100 132,431
Chrysler Corporation 6,500 366,438
Dana Corporation 1,100 58,850
Dayton Hudson Corporation 4,400 213,400
Dillard, Incorporated Class A 1,100 45,581
Dow Jones & Company 900 50,175
Eaton Corporation 800 62,200
Echlin, Incorporated 600 29,438
Federated Dept. Stores* 2,100 113,006
Ford Motor Company 12,100 713,900
Gannett Company, Incorporated 2,900 206,081
Gap, Incorporated 4,000 246,500
General Motors Corporation 7,100 474,369
Genuine Parts Company 2,000 69,125
Goodyear Tire & Rubber 1,600 103,100
Harcourt General, Incorporated 800 47,600
Harrah's Entertainment, Incorporated* 1,000 23,250
Hasbro, Incorporated 1,400 55,038
Hilton Hotels Corporation 2,500 71,250
Home Depot, Incorporated 7,400 614,663
ITT Industries, Incorporated 1,100 48,588
Jostens, Incorporated 500 11,938
K Mart Corporation* 5,000 96,250
Knight-Ridder, Incorporated 900 49,556
Liz Claiborne, Incorporated 700 36,575
Lowe's Companies, Incorporated 3,600 146,025
Marriott International Class A 2,600 84,175
Masco Company 1,700 102,850
Mattel, Incorporated 2,900 122,706
May Department Stores Company 2,300 150,650
McGraw-Hill Companies, Incorporated 1,000 81,563
Mercantile Stores Company 400 31,575
Mirage Resorts, Incorporated* 1,800 38,363
New York Times Class A 1,000 79,250
NIKE, Incorporated Class B 2,900 141,194
Nordstrom, Incorporated 800 61,800
Owens Corning 500 20,406
Penney, (J.C.) Company, Incorporated 2,500 180,781
Reebok International Limited* 600 16,613
Russell Corporation 400 12,075
Sears Roebuck & Company 4,000 244,250
Sherwin-Williams Company 1,700 56,313
Snap-On Tools, Incorporated 800 29,000
Springs Industries, Incorporated 200 9,225
Stanley (The) Works 900 37,406
Tandy Corporation 1,100 58,369
Limited (The), Incorporated 2,200 72,875
Times Mirror Company 900 56,588
TJX Cos, Incorporated 3,200 77,200
Toys "R" Us, Incorporated* 2,800 65,975
Tribune Company 1,300 89,456
TRW, Incorporated 1,300 71,013
Wal-Mart Stores, Incorporated 22,700 1,379,025
Whirlpool Corporation 800 55,000
Venator Group, Incorporated* 1,300 24,863
V.F. Corporation 1,300 66,950
-----------
7,824,194
-----------
CONSUMER NON-DURABLE - 24.09%
Abbott Laboratories 15,200 621,300
Albertson's, Incorporated 2,500 129,531
Allergan, Incorporated 700 32,463
American Home Products Corporation 13,000 672,750
American Stores Company 2,900 70,144
Anheuser-Busch Companies, Incorporated 5,000 235,938
Archer-Daniels-Midland Company 6,000 116,250
Avon Products, Incorporated 1,400 108,500
Bausch & Lomb, Incorporated 700 35,088
Baxter International, Incorporated 2,800 150,675
Becton, Dickinson Company 1,200 93,150
BestFoods, Incorporated 2,900 168,381
Boston Scientific Corporation* 1,900 136,088
Bristol-Meyers Squibb Company 10,000 1,149,375
Campbell Soup Company 4,600 244,375
Cardinal Health, Incorporated 1,100 103,125
CBS, Corporation 7,200 228,600
Clear Channel Communications 1,200 130,950
Clorox Company 1,000 95,375
Coca-Cola Company 24,600 2,103,300
Cognizant Corporation 1,600 100,800
Colgate-Palmolive Company 3,000 264,000
Columbia/HCA Healthcare Corporation 6,500 189,313
Comcast Corporation Class A Special 3,600 146,138
ConAgra, Incorporated 4,800 152,100
CVS Corporation 4,000 155,750
Deluxe Corporation 800 28,650
Donnelly (RR) & Sons Company 1,500 68,625
Fortune Brands, Incorporated 1,700 65,344
General Mills, Incorporated 1,600 109,400
Gillette Company 3,000 634,900
Great Atlantic & Pacific Tea Company,
Incorporated 400 13,225
Guidant Corporation 1,500 106,969
Heinz (H.J.) Company 3,600 202,050
Healthsouth Corporation* 4,100 109,419
Hershey Foods Corporation 1,400 96,600
Humana, Incorporated* 1,800 56,138
Johnson & Johnson Company 13,500 995,625
Kellogg Company 4,100 154,006
King World Productions, Incorporated 800 20,400
Kroger Company* 2,600 111,475
Lilly,(Eli) & Company 11,100 733,294
Mallincrokdt, Incorporated 900 26,719
Manor Care, Incorporated 700 26,906
McDonald's Corporation 7,000 483,000
Medtronic, Incorporated 4,800 306,000
Merck & Company, Incorporated 12,000 1,605,000
Newell Company 1,600 79,700
PepsiCo, Incorporated 15,200 626,050
Pfizer, Incorporated 13,000 1,412,938
Pharmacia & Upjohn, Incorporated 5,100 235,238
Philip Morris Companies, Incorporated 24,100 948,938
Pioneer Hi-Bred International 2,400 99,300
Procter & Gamble Company 13,400 1,220,238
Quaker Oats 1,300 71,419
Ralston-Ralston Purina Group 1,000 116,813
Rite Aid Corporation 2,700 101,419
Rubbermaid, Incorporated 1,500 49,781
Sara Lee Corporation 4,700 262,906
Schering-Plough Corporation 7,400 678,025
Seagram Company, Limited 3,700 151,469
Supervalu, Incorporated 800 35,500
St. Jude Medical* 900 33,131
Sysco Corporation 3,500 89,688
Tele-Communications, Incorporated* 5,100 196,031
Tenet Healthcare Corporation* 3,000 93,750
Time Warner, Incorporated 5,800 495,538
TRICON Global Restaurants* 1,500 47,531
Unilever N.V. 6,400 505,200
United HealthCare Corporation 1,900 120,650
U.S. Surgical Corporation 800 36,500
UST, Incorporated 1,800 48,600
Viacom, Incorporated - Class B* 3,600 209,700
Walgreen Company 5,100 210,694
Walt Disney Company, The 6,800 714,425
Warner-Lambert Company 8,200 568,875
Wendy's International 1,500 35,250
Winn-Dixie Stores, Incorporated 1,500 76,781
Wrigley, (Wm), Jr. Company 1,100 107,800
-----------
23,267,082
-----------
ENERGY - 6.81%
Amerada Hess Corporation 1,100 59,744
Amoco Corporation 10,000 416,250
Anadarko Petroleum Corporation 600 40,313
Ashland, Incorporated 800 41,300
Atlantic Richfield Company 3,200 250,000
Baker Hughes, Incorporated 1,700 58,756
Burlington Resources, Incorporated 1,800 77,513
Chevron Corporation 6,700 556,519
Dresser Industries, Incorporated 1,800 79,313
Exxon Corporation 24,700 1,761,419
Halliburton Company 2,700 120,319
Kerr-McGee Company 600 34,725
Mobil Corporation 7,900 605,338
Occidental Petroleum 3,600 97,200
Oryx Energy* 1,100 24,338
Pennzoil Company 500 25,313
Phillips Petroleum Company 2,700 130,106
Royal Dutch Petroleum ADR 21,500 1,178,469
Schlumberger Limited 5,400 368,888
Sun Company, Incorporated 700 27,169
Texaco, Incorporated 5,700 340,219
Union Pacific Resources Group 2,700 47,419
Unocal Corporation 2,500 89,375
USX-Marathon 2,900 99,506
Western Atlas, Incorporated* 600 50,925
-----------
6,580,436
-----------
MANUFACTURING - 4.48%
Air Products & Chemicals, Incorporated 2,400 96,000
Alcan Aluminum Limited 2,000 55,250
Allegheny Teledyne, Incorporated 2,100 48,038
Aluminum Company of America 1,600 105,500
Applied Materials, Incorporated* 3,800 112,100
Armco, Incorporated* 1,000 6,375
ASARCO, Incorporated 500 11,125
Ball Corporation 400 16,075
Barrick Gold Corporation 4,000 76,750
Bemis Company 500 20,438
Bethlehem Steel Corporation* 1,200 14,925
Centex Corporation 600 22,650
Champion International Corporation 1,200 59,025
Corning, Incorporated 2,300 79,925
Crown Cork & Seal Company, Incorporated 1,300 61,750
Dow Chemical Company 2,300 222,381
DuPont (E.I.) De Nemours & Company 11,400 850,725
Eastman Chemical Company 900 56,025
Englehard Corporation 1,500 30,375
FMC Corporation* 400 27,275
Fort James Corporation 2,100 93,450
Freeport-McMoRan Copper & Gold 1,900 28,856
Georgia-Pacific Company 1,000 58,938
Grace, (W.R.) & Company* 800 13,650
Great Lakes Chemical Corporation 700 27,606
Hercules, Incorporated 1,000 41,125
Inco, Limited 1,700 23,163
Inland Steel Industries, Incorporated 500 14,094
International Flavors & Fragrance, Incorporated 1,200 52,125
International Paper Company 3,400 146,200
Kaufman & Broad Home Corporation 400 12,700
Kimberly-Clark Corporation 5,600 256,900
Louisiana Pacific Corporation 1,300 23,725
Mead Corporation 1,500 47,625
Monsanto Company 6,000 335,250
Morton International, Incorporated 1,300 32,500
Nalco Chemical Company 800 28,100
National Service Industries 500 25,438
Newmont Mining Corporation 3,400 80,325
Nucor Corporation 1,000 46,000
Octel Corporation* 150 2,981
Owens-Illinois, Incorporated* 1,500 67,125
Phelps Dodge Corporation 600 34,313
Pitney-Bowes, Incorporated 2,900 139,563
Placer Dome, Incorporated 3,000 35,250
PPG Industries, Incorporated 1,800 125,213
Praxair, Incorporated 1,600 74,900
Pulte Corporation 400 11,950
Reynolds Metals Company 600 33,563
Rohm & Haas Company 600 62,363
Sigma-Aldrich Corporation 1,100 38,638
Temple-Inland 800 43,100
Union Camp Corporation 1,000 49,625
Union Carbide Corporation 1,300 69,388
USX-U.S. Steel Group 900 29,700
Weyerhaeuser Company 2,100 96,994
Willamette Industries 1,200 38,400
Worthington Industries, Incorporated 1,000 15,063
-----------
4,328,606
-----------
SERVICE - 1.03%
Automatic Data Processing, Incorporated 2,900 211,338
Block (H&R), Incorporated 1,100 46,338
Cendant Corporation* 8,100 169,088
Dun & Bradstreet Corporation 1,700 61,200
Equifax, Incorporated 1,500 54,469
First Data Corporation 4,300 143,244
Interpublic Group Companies, Incorporated 1,300 78,894
Laidlaw, Incorporated 3,400 41,438
Omnicom Group 1,700 84,788
Service Corporation International 2,500 107,188
-----------
997,985
-----------
TECHNOLOGY - 13.41%
3COM Corporation* 3,700 113,544
Adobe Systems, Incorporated 700 29,706
Advanced Micro Devices, Incorporated* 1,400 23,888
Amgen, Incorporated* 2,600 169,975
Andrew Corporation* 900 16,256
Apple Computer, Incorporated* 1,300 37,294
Bay Networks* 2,200 70,950
Cabletron Systems, Incorporated* 1,700 22,844
Cisco Systems, Incorporated* 10,300 948,244
COMPAQ Computers Corporation* 16,617 471,507
Computer Associates International, Incorporated 5,500 305,594
Computer Sciences Corporation 1,600 102,400
Data General Corporation* 600 8,963
Dell Computer Corporation 6,500 603,281
DSC Communications Corporation* 1,200 36,000
Eastman Kodak Company 3,200 233,800
EMC Corporation Massachusetts* 5,000 224,063
Gateway 2000, Incorporated* 1,700 86,063
General Instrument Corporation* 1,500 40,781
HBO & Company 4,200 148,050
Hewlett-Packard Company 10,400 622,700
IKON Office Solution 1,400 20,388
Intel Corporation 16,300 1,208,238
International Business Machines Corporation 9,700 1,113,681
LSI Logic Corporation* 1,400 32,288
Lucent Technologies 13,100 1,089,756
Micron Technology, Incorporated* 2,200 54,588
Microsoft Corporation 24,500 2,655,188
Motorola, Incorporated 6,000 315,375
National Semiconductor* 1,700 22,419
Nothern Telecom, Limited 5,300 300,775
Novell, Incorporated* 3,700 47,175
Oracle Systems Corporation* 10,000 245,625
Parametric Technology Company 2,600 70,525
Raytheon Company - Class B 3,500 206,938
Rockwell International Corporation 2,000 96,125
Seagate Technology, Incorporated* 2,400 57,150
Scientific-Atlanta, Incorporated 900 22,838
Silicon Graphics, Incorporated* 1,800 21,825
Sun Microsystems, Incorporated* 3,800 165,063
Tellabs, Incorporated* 1,800 128,925
Texas Instruments, Incorporated 4,000 233,250
Textron, Incorporated 1,700 121,869
Unisys Corporation* 2,600 73,450
Xerox Corporation 3,200 325,200
-----------
12,944,557
-----------
TRANSPORTATION - 1.07%
AMR Corporation 1,800 149,850
Burlington Northern Santa Fe Corporation 1,800 176,738
CSX Corporation 2,300 104,650
Delta Air Lines 800 103,400
FDX Corporation* 1,400 87,850
Norfolk Southern Company 4,200 125,213
Ryder System 1,000 31,563
Southwest Airlines Company 2,400 71,100
Union Pacific Corporation 2,500 110,313
US Airways Group, Incorporated* 900 71,325
-----------
1,032,002
-----------
UTILITIES - 9.36%
AirTouch Communications* 5,700 333,094
ALLTELL Corporation 1,900 88,350
Ameren Corporation 1,400 55,650
AT & T Corporation 16,200 925,425
American Electric Power Company, Incorporated 2,100 95,288
Ameritech Corporation 10,800 484,650
Baltimore Gas & Electric Company 1,500 46,594
Bell Atlantic Corporation 15,600 711,750
BellSouth Corporation 9,900 664,538
Carolina Power & Light Company 1,500 65,063
Central & SouthWest Corporation 2,200 59,125
CINergy Corporation 1,600 56,000
Coastal Corporation 1,100 76,794
Columbia Energy Group 900 50,063
Consolidated Edison, Incorporated 2,500 115,156
Consolidated Natural Gas Company 1,000 58,875
Dominion Resources 2,100 85,575
Duke Energy 3,700 219,225
DTE Energy Company 1,600 64,600
Eastern Enterprises 400 17,150
Edison International 4,000 118,250
Entergy Corporation 2,500 71,875
Enron Corporation 3,400 183,813
FirstEnergy Corporation 1,700 52,275
Frontier Corporation 1,700 53,550
FPL Group, Incorporated 1,900 119,700
GPU Corporation 1,400 52,938
GTE Corporation 9,500 528,438
Houston Industries, Incorporated 2,800 86,450
MCI Communications Corporation 6,900 401,063
Mediaone Group* 6,200 272,413
Niagara Mohawk Power Corporation* 1,500 22,406
Northern States Power Company 1,800 51,525
ONEOK, Incorporated 400 15,950
PacifiCorp 3,100 70,138
PECO Energy Company 2,300 67,131
PG & E Corporation 4,000 126,250
PP & L Resources, Incorporated 1,700 38,569
Public Service Enterprises Group, Incorporated 2,300 79,206
SBC Communications, Incorporated 18,500 740,000
Sonat, Incorporated 1,100 42,488
Southern Company 7,100 196,581
Sprint Corporation 4,400 310,200
Texas Utilities Holings Cos. 2,500 104,063
Unicom Corporation 2,200 77,138
US West Communications Group 5,169 242,943
Williams Cos. 4,200 141,750
WorldCom, Incorporated 10,200 494,063
-----------
9,034,131
-----------
Total Common Stocks (cost $66,153,215) 89,037,420
-----------
<CAPTION>
SHORT-TERM INVESTMENTS - 7.29%
PRINCIPAL VALUE
<S> <C> <C>
US Treasury Bill (0.000% due 11/12/98) $6,741,000 6,613,797
Firstar US Federal Money Market Fund 420,641 420,641
-----------
Total Short-Term Investments (cost $7,034,438) 7,034,438
-----------
TOTAL INVESTMENTS - 99.49%
(cost $73,187,653) <F1> 96,071,858
-----------
OTHER ASSETS AND LIABILITIES - .51% 494,897
-----------
TOTAL NET ASSETS - 100% $96,566,755
===========
- -------
*Non-income producing
<FN>
<F1> Gross unrealized appreciation and depreciation of securities at June
30, 1998 for financial reporting was $24,502,971 and ($1,618,766)
respectively.
<F2> Securities with an aggregate market value of $7,143,750 have been
segregated with the custodian to cover margin requirements for the following
open futures contracts at June 30, 1998:
<CAPTION>
Unrealized Appreciation/
Type Contracts (Depreciation)
<S> <C> <C>
Standard & Poor's 500 Index (09/98) 2 $16,750
Standard & Poor's 500 Index (09/98) 1 7,500
Standard & Poor's 500 Index (09/98) 1 10,900
Standard & Poor's 500 Index (09/98) 2 16,250
Standard & Poor's 500 Index (09/98) 1 12,125
Standard & Poor's 500 Index (09/98) 1 7,450
Standard & Poor's 500 Index (09/98) 1 2,875
Standard & Poor's 500 Index (09/98) 1 4,800
Standard & Poor's 500 Index (09/98) 1 6,075
Standard & Poor's 500 Index (09/98) 1 8,750
Standard & Poor's 500 Index (09/98) 1 12,250
Standard & Poor's 500 Index (09/98) 1 12,500
Standard & Poor's 500 Index (09/98) 2 17,500
Standard & Poor's 500 Index (09/98) 2 11,500
Standard & Poor's 500 Index (09/98) 1 7,475
Standard & Poor's 500 Index (09/98) 1 3,175
Standard & Poor's 500 Index (09/98) 1 (1,625)
Standard & Poor's 500 Index (09/98) 1 (675)
Standard & Poor's 500 Index (09/98) 2 (6,250)
Standard & Poor's 500 Index (09/98) 1 (1,250)
--------
$148,075
========
</FN>
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
Carillon Fund, Inc.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Carillon Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a no-load,
diversified, open-end management investment company. The
shares of the Fund are sold only to The Union Central Life
Insurance Company (Union Central) and its separate accounts to
fund the benefits under certain variable insurance and
retirement products. The Fund's shares are offered in five
different series - Equity Portfolio, Capital Portfolio, Bond
Portfolio, S&P 500 Index Portfolio and Micro-Cap Portfolio.
The Equity Portfolio seeks long-term appreciation of capital by
investing primarily in common stocks and other equity
securities. The Capital Portfolio seeks the highest total
return through a combination of income and capital appreciation
consistent with the reasonable risks associated with an
investment portfolio of above-average quality by investing in
equity securities, debt instruments, and money market
instruments. The Bond Portfolio seeks a high level of current
income as is consistent with reasonable investment risk by
investing primarily in long-term, fixed-income, investment-
grade corporate bonds. The S&P 500 Index Portfolio seeks
investment results that correspond to the total return
performance of U.S. common stocks, as represented in the
Standard & Poor's 500 Index. The financial statements of
Micro-Cap are presented separately.
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 revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Securities valuation - Securities held in each Portfolio,
except for money market instruments maturing in 60 days or
less, are valued as follows: Securities traded on stock
exchanges (including securities traded in both the over-the-
counter market and on an exchange), or listed on the NASDAQ
National Market System, are valued at the last sales price as
of the close of the New York Stock Exchange on the day the
securities are being valued, or, lacking any sales, at the
closing bid prices. Securities traded only in the over-the-
counter market are valued at the last bid price, as of the
close of trading on the New York Stock Exchange, quoted by
brokers that make markets in the securities. Other securities
for which market quotations are not readily available are
valued at fair value as determined in good faith under
procedures adopted by the Board of Directors. Money market
instruments with a remaining maturity of 60 days or less held
in each Portfolio are valued at amortized cost which
approximates market.
Securities transactions and investment income - Securities
transactions are recorded on the trade date (the date the order
to buy or sell is executed). Dividend income is recorded on
the ex-dividend date and interest income is recorded on the
accrual basis. All amortization of discount is recognized
currently under the effective interest method. Gains and losses
on sales of investments are calculated on the identified cost
basis for financial reporting and tax purposes.
Federal taxes - It is the intent of the Fund to comply with the
requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its net
investment income and any net realized capital gains.
Regulated investment companies owned by the segregated asset
accounts of a life insurance company, held in connection with
variable annuity contracts, are exempt from excise tax on
undistributed income. Therefore, no provision for income or
excise taxes has been recorded.
Distributions -Distributions from net investment income in all
Portfolios are declared and paid quarterly. Net realized
capital gains are distributed periodically, no less frequently
than annually. Distributions are recorded on the ex-dividend
date. All distributions are reinvested in additional shares of
the respective Portfolio at the net asset value per share.
The amount of distributions are determined in accordance with
federal income tax regulations which may differ from generally
accepted accounting principles. These "book/tax" differences
are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their
federal tax-basis treatment; temporary differences do not
require reclassification. Distributions which exceed net
investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as
distributions in excess of net investment income or
distributions in excess of net realized capital gains. To the
extent they exceed net investment income and net realized
capital gains for tax purposes, they are reported as
distributions of paid-in-capital.
Expenses - Allocable expenses of the Fund are charged to each
Portfolio based on the ratio of the net assets of each
Portfolio to the combined net assets of the Fund. Nonallocable
expenses are charged to each Portfolio based on specific
identification.
NOTE 2 - TRANSACTIONS WITH AFFILIATES
Investment advisory fees - The Fund pays investment advisory
fees to Carillon Advisers, Inc. (the Adviser), under terms of
an Investment Advisory Agreement (the Agreement). Certain
officers and directors of the Adviser are affiliated with the
Fund. The Fund pays the Adviser, as full compensation for all
services and facilities furnished, a monthly fee computed
separately for each Portfolio on a daily basis, at an annual
rate, as follows:
(a) for the Equity Portfolio - .65% of the first
$50,000,000, .60% of the next $100,000,000, and
.50% of all over $150,000,000 of the current net
asset value:
(b) for Capital Portfolio - .75% of the first
$50,000,000, .65% of the next $100,000,000, and
.50% of all over $150,000,000 of the current net
asset value.
(c) for the Bond Portfolio - .50% of the first
$50,000,000, .45% of the next $100,000,000, and
.40% of all over $150,000,000 of the current net
asset value.
(d) for the S & P 500 Index Portfolio - .30% of the
current net asset value.
The Agreement provides that if the total operating expenses of
the Fund, exclusive of the advisory fee and certain other
expenses as described in the Agreement, for any fiscal quarter
exceed an annual rate of 1% of the average daily net assets of
the Equity, Capital , or Bond Portfolios, the Adviser will
reimburse the Fund for such excess, up to the amount of the
advisory fee for that year. The Adviser has agreed to waive
its advisory fee and pay any other expenses of the S&P 500
Index Portfolio to the extent that such expenses exceed 0.60%
of its average annual net assets.
In addition to providing investment advisory services, the
Adviser is responsible for providing certain administrative
functions to the Fund. The Adviser has entered into an
Administration Agreement with Carillon Investments, Inc. (the
Distributor) under which the Distributor furnishes
substantially all of such services for an annual fee of .20% of
the Fund's average net assets for the Equity, Capital, and Bond
Portfolios, and .05% of the Fund's average net assets for the S
& P 500 Index Portfolio. The fee is borne by the Adviser, not
the Fund.
Carillon Advisers, Inc. and Carillon Investments, Inc. are
wholly-owned subsidiaries of Union Central.
Directors' fees - Each director who is not affiliated with the
Adviser receives fees from the Fund for service as a director.
Members of the Board of Directors who are not affiliated with
the Adviser are eligible to participate in a deferred
compensation plan. The value of each director's deferred
compensation account will increase or decrease at the same rate
as if it were invested in shares of the Scudder Money Market
Fund.
NOTE 3 - FUTURES CONTRACTS
S&P 500 Index Portfolio ("Index") may purchase futures
contracts on the Standard & Poor's 500 Stock Index. These
contracts provide for the sale of a specified quantity of a
financial instrument at a fixed price at a future date. When
Index enters into a futures contract, it is required to deposit
and maintain as collateral such initial margin as required by
the exchange on which the contract is traded. Under terms on
the contract, Index agrees to receive from or pay to the broker
an amount equal to the daily fluctuation in the value of the
contract (known as the variation margin). The variation margin
is recorded as unrealized gain or loss until the contract
expires or is otherwise closed, at which time the gain or loss
is realized. Index invests in futures as a substitute to
investing in the 500 common stock positions in the Standard &
Poor's 500 Index. The potential risk to Index is that the
change in the value in the underlying securities may not
correlate to the value of the contracts.
NOTE 4 - SUMMARY OF PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of securities for the six months ended June
30, 1998 excluding short-term obligations, follow:
<TABLE>
<CAPTION>
Equity Capital Bond S&P 500
Portfolio Portfolio Portfolio Index
<S> <C> <C> <C> <C>
Total Cost of
Purchases of:
Common Stocks $108,175,673 $ 71,274,442 $ 500,000 $27,807,197
U.S. Government Securities -- 34,111,890 10,804,013 --
Corporate Bonds -- 38,166,860 37,315,194 --
------------ ------------ ----------- -----------
$108,175,673 $143,553,192 $48,619,207 $27,807,197
============ ============ =========== ===========
Total Proceeds
from Sales of:
Common Stocks $113,680,587 $ 35,540,622 $ 1,854,049 $ 684,419
U.S. Government Securities -- 59,833,973 6,367,691 --
Corporate Bonds -- 13,659,857 23,955,287 --
------------ ------------ ----------- -----------
$113,680,587 $109,034,452 $32,177,027 $ 684,419
============ ============ =========== ===========
</TABLE>
<PAGE>
Carillon Fund, Inc.
NOTES TO FINANCIAL STATEMENTS
Note 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital
stock outstanding throughout the period.
<TABLE>
<CAPTION>
Equity Portfolio
Six Months Ended
June 30, Year Ended December 31,
---------------- -----------------------
(Unaudited)
1998 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of period $20.35 $19.45 $16.54 $14.30 $14.58 $13.74
---------- -------- -------- -------- -------- --------
Investment
Activities:
Net investment
income .12 .23 .29 .24 .20 .16
Net realized and
unrealized gains/
(losses) .62 3.23 3.61 3.36 .31 1.69
---------- -------- -------- -------- -------- --------
Total from
Investment
Operations .74 3.46 3.90 3.60 .51 1.85
---------- -------- -------- -------- -------- --------
Distributions:
Net investment
income (0.10) (.27) (.27) (.23) (.19) (.16)
Net realized gains (2.68) (2.29) (.72) (1.13) (.60) (.85)
---------- -------- -------- -------- -------- --------
Total Distributions (2.78) (2.56) (.99) (1.36) (.79) (1.01)
---------- -------- -------- -------- -------- --------
Net Asset Value,
End of period $18.31 $20.35 $19.45 $16.54 $14.30 $14.58
========== ======== ======== ======== ======== ========
Total Return 3.20% 20.56% 24.52% 26.96% 3.42% 14.11%
Ratios/Supplemental
Data:
Ratio of Expenses
to Average
Net Assets .61%<F1> .62% .64% .66% .69% .70%
Ratio of Net
Investment Income
to Average
Net Assets 1.25%<F1> 1.23% 1.66% 1.73% 1.45% 1.18%
Portfolio Turnover
Rate 68.51%<F1> 57.03% 52.53% 34.33% 40.33% 37.93%
Net Assets,
End of Period
(000's) $336,715 $335,627 $288,124 $219,563 $157,696 $138,239
<FN>
<F1> The ratios are annualized.
</FN>
</TABLE>
<PAGE>
Carillon Fund, Inc.
NOTES TO FINANCIAL STATEMENTS
Note 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital
stock outstanding throughout the period.
<TABLE>
<CAPTION>
Capital Portfolio
Six Months Ended
June 30, Year Ended December 31,
---------------- -----------------------
(Unaudited)
1998 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $14.10 $14.95 $13.72 $13.19 $13.81 $12.99
----------- -------- -------- -------- -------- --------
Investment
Activities:
Net investment
income .24 .62 .63 .64 .52 .43
Net realized and
unrealized gains/
(losses) (.42) .37 1.36 1.15 (.39) 1.17
----------- -------- -------- -------- -------- --------
Total from
Investment
Operations (.18) .99 1.99 1.79 .13 1.60
----------- -------- -------- -------- -------- --------
Distributions:
Net investment
income (.27) (.66) (.57) (.64) (.52) (.42)
In excess of net
investment income (.72) (1.18) (.19) (.62) (.23) (.36)
----------- -------- -------- -------- -------- -------
Total Distributions (.99) (1.84) (.76) (1.26) (.75) (.78)
----------- -------- -------- -------- -------- --------
Net Asset Value,
End of period $12.93 $14.10 $14.95 $13.72 $13.19 $13.81
=========== ======== ======== ======== ======== ========
Total Return (1.48%) 7.40% 14.94% 14.28% .94% 12.72%
Ratios/Supplemental
Data:
Ratio of Expenses to
Average Net Assets .78%<F1> .77% .77% .77% .80% .82%
Ratio of Net
Investment Income
to Average
Net Assets 3.68%<F1> 4.22% 4.42% 4.99% 4.25% 3.31%
Portfolio Turnover
Rate 178.19%<F1> 60.84% 53.11% 43.83% 41.89% 32.42%
Net Assets,
End of Period
(000's) $145,126 $148,830 $159,294 $145,623 $119,263 $100,016
<FN>
<F1> The ratios are annualized.
</FN>
</TABLE>
<PAGE>
Carillon Fund, Inc.
NOTES TO FINANCIAL STATEMENTS
Note 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital
stock outstanding throughout the period.
<TABLE>
<CAPTION>
Bond Portfolio
Six Months Ended
June 30 Year Ended December 31,
---------------- -----------------------
(Unaudited)
1998 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $11.29 $10.91 $11.07 $10.04 $11.30 $10.91
--------- ------- ------- ------- ------- -------
Investment Activities:
Net investment income .31 .79 .79 .88 .77 .73
Net realized and
unrealized gains/
(losses) .13 .37 (.04) .98 (.95) .54
--------- ------- ------- ------- ------- -------
Total from Investment
Operations .44 1.16 .75 1.86 (.18) 1.27
--------- ------- ------- ------- ------- -------
Distributions:
Net investment income (.29) (.72) (.87) (.83) (.78) (.73)
In excess of net
investment income -- -- (.04) -- -- --
Net realized gains (.03) (.06) -- -- (.30) (.15)
--------- ------- ------- ------- ------- -------
Total Distributions (.32) (.78) (.91) (.83) (1.08) (.88)
--------- ------- ------- ------- ------- -------
Net Asset Value,
End of period $11.41 $11.29 $10.91 $11.07 $10.04 $11.30
========= ======= ======= ======= ======= =======
Total Return 4.78% 11.02% 7.19% 19.03% (1.63%) 11.94%
Ratios/Supplemental
Data:
Ratio of Expenses
to Average
Net Assets .58%<F1> .60% .62% .65% .68% .66%
Ratio of Net
Investment Income
to Average
Net Assets 7.23%<F1> 7.15% 7.24% 7.43% 7.21% 6.65%
Portfolio
Turnover Rate 62.92%<F1> 113.41% 202.44% 111.01% 70.27% 137.46%
Net Assets,
End of Period
(000's) $120,172 $99,892 $85,634 $73,568 $55,929 $54,128
<FN>
<F1> The ratios are annualized.
</FN>
</TABLE>
<PAGE>
Carillon Fund, Inc.
NOTES TO FINANCIAL STATEMENTS
Note 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital
stock outstanding throughout the period.
<TABLE>
<CAPTION>
S & P Index Portfolio
Six Months Ended
June 30, Year Ended December 31,
---------------- ----------------------
(Unaudited)
1998 1997 1996
<S> <C> <C> <C>
Net Asset Value,
Beginning of period $15.74 $12.13 $10.00
--------- --------- ---------
Investment Activities:
Net investment income .10 .20 .20
Net realized and unrealized
gains/(losses) 2.67 3.72 2.12
--------- --------- ---------
Total from Investment Operations 2.77 3.92 2.32
--------- --------- ---------
Distributions:
Net investment income (.10) (.21) (.19)
Net realized gains (.46) (.10) --
--------- --------- ---------
Total Distributions (.56) (.31) (.19)
--------- --------- ---------
Net Asset Value,
End of period $17.95 $15.74 $12.13
========= ========= =========
Total Return 17.70% 32.72% 23.37%
Ratios/Supplemental Data:
Ratio of Expenses to
Average Net Assets .41%<F1> .50% .59%<F2>
Ratio of Net Investment
Income to Average Net Assets 1.36%<F1> 1.48% 2.14%<F2>
Portfolio Turnover Rate 2.02%<F1> 9.06% 1.09%
Net Assets, End of Period (000's) $96,567 $55,595 $29,205
<FN>
<F1> The ratios are annualized.
<F2> The ratios of net expenses to average net assets would have increased
and net investment income to average net assets would have decreased by .25%
for the year ended December 31, 1996, had the Adviser not waived a portion
of its fee.
</FN>
</TABLE>
<PAGE>
Financial Statements
Carillon Fund, Inc.
Micro-Cap Portfolio
<PAGE>
CARILLON FUND, INC.
MICRO-CAP PORTFOLIO
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
June 30, 1998
(Unaudited)
<S> <C>
ASSETS
Investments in securities, at value $3,075,211
(cost $3,042,843)
Receivables:
Securities sold 167,196
Interest and dividends 1,049
Prepaid expenses and other 313
----------
3,243,769
----------
LIABILITIES
Payables:
Investment securities purchased 139,296
Bank overdraft 78,360
Professional fees 7,118
Custodial and portfolio accounting fees 6,580
Investment advisory fees 2,426
Other accrued expenses 1,926
----------
235,706
----------
NET ASSETS
Paid-in capital 2,976,203
Accumulated net realized gain/(loss) (508)
of investments
Net unrealized appreciation of investments 32,368
----------
$3,008,063
==========
Shares authorized ($.10) par value 20,000,000
Shares outstanding 300,000
Net asset value, offering and
redemption price per share $10.03
==========
</TABLE>
The accompanying notes are an integral part of
the financial statement.
<PAGE>
CARILLON FUND, INC.
MICRO-CAP PORTFOLIO
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Ended June 30, 1998
(Unaudited)
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding
taxes of $90) 8,052
Interest 2,302
--------
10,354
--------
EXPENSES
Investment advisory fees 15,197
Portfolio accounting fees 11,366
Director's fees 7,100
Professional fees 6,124
Custodial fees and expenses 1,744
Transfer agent fees 540
Registration and filing fees 193
Other 904
--------
43,168
Expense Reimbursement (12,771)
--------
30,397
--------
NET INVESTMENT LOSS (20,043)
--------
REALIZED AND UNREALIZED LOSS
Net realized loss on investments (508)
--------
Net change in unrealized appreciation/
(depreciation) of investments 48,224
--------
NET REALIZED AND UNREALIZED GAIN/(LOSS) 47,716
--------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 27,673
========
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
CARILLON FUND, INC.
MICRO-CAP PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Period from
Six Months November 24, 1997
Ended to
June 30, 1997 December 31, 1997
------------- -----------------
Unaudited
<S> <C> <C>
OPERATIONS
Net investment loss $ (20,043) $ (3,754)
Net realized loss on investments (508) --
et change of unrealized appreciation/
(depreciation) on investments,
and translation of assets and
liabilities in foreign currencies. 48,224 (15,856)
---------- ----------
27,673 (19,610)
---------- ----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold -- 3,000,000
---------- ----------
NET INCREASE IN NET ASSETS 27,673 2,980,390
NET ASSETS
Beginning of period 2,980,390 --
---------- ----------
End of period $3,008,063 $2,980,390
========== ==========
FUND SHARE TRANSACTIONS:
Sold -- 300,000
---------- ----------
Net increase from
fund share transactions -- 300,000
========== ==========
</TABLE>
The accompanying notes are an integral part of
the financial statements
<PAGE>
CARILLON FUND, INC.
MICRO-CAP PORTFOLIO
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
JUNE 30, 1998
(Unaudited)
COMMON STOCKS - 96.78%
SHARES VALUE
<S> <C> <C>
BANKING & FINANCIAL SERVICE - 19.72%
Duff & Phelps Credit Rating Company 2,300 $ 128,225
Fahnestock Viner Holdings Class-A 4,300 83,313
Investment Technology Group 2,800 79,296
Jefferies Group, Incorporated 1,500 61,500
Mid-Iowa Financial 7,700 84,700
Warren Bancorp, Incorporated 6,200 82,150
West Coast Bancorp/Oregon 3,000 73,875
----------
593,059
----------
CAPITAL GOODS - 6.05%
LMI Aerospace, Incorporated* 6,000 60,000
Mitcham Industries, Incorporated* 4,000 46,750
Petroleum Helicopters (non-voting) 3,500 75,250
182,000
----------
CONSUMER CYCLICAL - 21.69%
Decorator Industries, Incorporated 6,000 78,000
Maxwell Shoe Company Incorporated - A* 5,000 99,375
NCI Building Systems, Incorporated* 1,400 80,851
Nemark Homes Corporation 10,000 103,750
Strattec Security Corporation* 3,200 96,400
Supreme International Corporation* 6,900 112,988
Winsloew Furniture, Incorporated* 3,000 81,000
----------
652,364
----------
CONSUMER NON-DURABLE - 17.80%
Advanced Marketing Services 5,000 85,000
Boston Acoustics 2,700 99,225
Complete Management Incorporated* 4,800 18,900
Nam Tai Electronics, Incorporated 4,700 70,794
Norland Medical Systems, Incorporated* 10,500 18,375
Orthofix International N.V. 6,300 81,900
Schlotzsky's, Incorporated* 4,500 72,000
Young Innovations, Incorporated* 5,800 89,175
----------
535,369
----------
ENERGY - 9.42%
Callon Petroleum Company* 4,300 61,544
Dawson Geophysical Company 4,000 76,000
Domain Energy Corporation* 4,600 55,200
OYO Geospace Corporation* 3,300 90,750
----------
283,494
----------
MANUFACTURING - 10.06%
Cannondale Corporation* 3,800 50,825
CFC International, Incorporated 7,500 80,625
Fibermark, Incorporated* 4,100 65,600
Omniquip International, Incorporated 3,000 55,500
STB Systems, Incorporated 4,000 50,000
----------
302,550
----------
TECHNOLOGY - 12.04%
DRS Technologies, Incorporated* 6,700 80,400
Vertex Communications Corporation* 3,300 77,550
Vtech Holdings Limited 3,400 126,588
Xircom, Incorporated 5,000 77,813
----------
362,351
----------
Total Common Stocks (cost $ 2,861,396) 2,990,483
----------
FOREIGN COMMON STOCK - 1.60%
HONG KONG - 1.60%
Techtronic Industries* 232,800 48,071
----------
Total Foreign Common Stock
(cost $65,494) 48,071
----------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
VARIABLE RATE DEMAND NOTES <F1> - 3.84%
Johnson Controls (5.265% due 12/31/31) $77,212 $ 77,212
Firstar Bank (5.660% due 12/31/31) 38,741 38,741
----------
115,953
----------
Total Short-Term Investments
(cost $115,953) 115,953
----------
TOTAL INVESTMENTS - 102.23%
(cost $3,042,843)<F2> 3,075,211
OTHER ASSETS AND LIABILITIES - (2.23%) (67,148)
----------
TOTAL NET ASSETS - 100% $3,008,063
==========
_________
*Non-income producing
(ADR) American Depository Receipt
<FN>
<F1> Interest rates vary periodically based on current market rates. The
maturity shown for each variable rate demand note is the later of the next
scheduled interest rate adjustment date or the date on which principal can
be recovered through demand. Information as of June 30, 1998.
<F2> Represents cost for Federal income tax purposes. Gross unrealized
appreciation and depreciation of securities at June 30, 1998 was $362,700
and ($330,332), respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
CARILLON FUND, INC.
MICRO-CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
The Micro-Cap Portfolio (Micro-Cap) of Carillon Fund, Inc. (the
Fund) is registered under the Investment Company Act of 1940,
as amended, as a no-load, diversified, open-end management
investment company. The shares of the Fund are sold only to
The Union Central Life Insurance Company (Union Central) and
its separate accounts to fund the benefits under certain
variable insurance and retirement products. The Fund's shares
are offered in five different series - Equity Portfolio,
Capital Portfolio, Bond Portfolio, S&P 500 Index Portfolio and
Micro-Cap Portfolio. Micro-Cap seeks long-term appreciation by
investing primarily in the common stocks of domestic companies
with smaller market capitalization. The financial statements
of the Equity, Bond, Capital and S&P 500 Index Portfolios are
presented separately.
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 revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Securities valuation - Securities except for short-term fixed
income securities maturing in 60 days or less, are valued as
follows: Securities traded on stock exchanges (including
securities traded in both the over-the-counter market and on an
exchange), or listed on the NASDAQ National Market System, are
valued at the last sales price as of the close of the New York
Stock Exchange on the day the securities are being valued, or,
lacking any sales, at the closing bid prices. Securities
traded only in the over-the-counter market are valued at the
last bid price, as of the close of trading on the New York
Stock Exchange, quoted by brokers that make markets in the
securities. Other securities for which market quotations are
not readily available are valued at fair value as determined in
good faith under procedures adopted by the Board of Directors.
Short-term fixed income securities with a remaining maturity of
60 days or less held in each Portfolio are valued at amortized
cost which approximates market. Non-U.S. dollar securities are
translated into U.S. dollars using the spot exchange rate at
the close of the London market.
Securities transactions and investment income - Securities
transactions are recorded on the trade date (the date the order
to buy or sell is executed). Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual
basis. All amortization of discount is recognized currently
under the effective interest method. Gains and losses on sales of
investments are calculated on the identified cost basis for
financial reporting and tax purposes.
Federal taxes - It is Micro-Cap's intent to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its net investment
income and any net realized capital gains. Regulated investment
companies owned by the segregated asset accounts of a life
insurance company, held in connection with variable annuity
contracts, are exempt from excise tax on undistributed income.
Therefore, no provision for income or excise taxes has been
recorded.
Distributions - Distributions from net investment income are
declared and paid quarterly. Net realized capital gains are
distributed periodically, no less frequently than annually.
Distributions are recorded on the ex-dividend date. All
distributions are reinvested in additional shares at the net
asset value per share.
The amount of distributions are determined in accordance with
federal income tax regulations which may differ from generally
accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their
federal tax-basis treatment; temporary differences do not require
reclassification. Distributions which exceed net investment
income and net realized capital gains for financial reporting
purposes but not for tax purposes are reported as distributions
in excess of net investment income or distributions in excess of
net realized capital gains. To the extent they exceed net
investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
Expenses - Allocable expenses of the Fund are charged to each
Portfolio based on the ratio of the net assets of each Portfolio
to the combined net assets of the Fund. Nonallocable expenses
are charged to each Portfolio based on specific identification.
Foreign Currency - The Fund's accounting records are maintained
in U.S. dollars. All Portfolios may purchase foreign
securities within certain limitations set forth in the
Prospectus. Amounts dominated in or expected to settle in
foreign currencies are translated into U.S. dollars at the spot
rate reported at the close of the London market. The Fund does
not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the
underlying fluctuation in the securities resulting from market
prices. All are included in net realized and unrealized gain
or loss for investments.
NOTE 2 - TRANSACTIONS WITH AFFILIATES
Investment advisory fees - Micro-Cap pays investment advisory
fees to Carillon Advisers, Inc. (the Adviser), under terms of
an Investment Advisory Agreement (the Agreement). Certain
officers and directors of the Adviser are affiliated with the
Fund. The Fund pays the Adviser, as full compensation for all
services and facilities furnished, a monthly fee computed on a
daily basis, at an annual rate of 1.0% of net assets.
The Adviser has agreed to limit expenses of the Fund to 2% of
the average annual net assets.
In addition to providing investment advisory services, the
Adviser is responsible for providing certain administrative
functions to the Fund. The Adviser has entered into an
Administration Agreement with Carillon Investments, Inc. (the
Distributor) under which the Distributor furnishes
substantially all of such services for an annual fee of .10% of
the Fund's average net assets. The fee is borne by the Adviser
not the Fund.
Carillon Advisers, Inc. and Carillon Investments, Inc. are
wholly-owned subsidiaries of Union Central.
Directors' fees - Each director who is not affiliated with the
Adviser receives fees from the Fund for service as a director.
Members of the Board of Directors who are not affiliated with
the Adviser are eligible to participate in a deferred
compensation plan. The value of each director's deferred
compensation account will increase or decrease at the same rate
as if it were invested in shares of the Scudder Money Market
Fund.
NOTE 3 - FORWARD CURRENCY CONTRACTS
All portfolios may enter into forward foreign currency exchange
contacts for the purchase or sale of a specific foreign
currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of
counter-parties to meet the terms of their contracts and from
unanticipated movements in their value of a foreign currency
relative to the U.S. dollar. The funds typically utilize the
contracts as a hedge against fluctuation in currency values
between the trade and settlement dates of security
transactions.
NOTE 4 - SUMMARY OF PURCHASES AND SALES OF INVESTMENTS
Micro-Cap purchased $1,055,150 and sold $1,057,798 of
securities for the six months ended June 30, 1998, excluding
short-term obligations.
Note 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock
outstanding throughout the period.
<TABLE>
<CAPTION>
For the Period from
Six Months November 24, 1997
Ended to
June 30, 1998 December 31, 1997
------------- -----------------
<S> <C> <C>
Net Asset Value,
Beginning of Period $ 9.93 $ 10.00
--------- ---------
Investment Activities:
Net investment income (loss) (.01) (.01)
Net realized and unrealized
gains/(losses) .11 (.06)
--------- ---------
Total from Investment Operations .10 (.07)
--------- ---------
Net Asset Value,
End of Year $ 10.03 $ 9.93
========= =========
Total Return 1.01% (0.7%)
Ratios/Supplemental Data:
Ratio of Net Expenses to
Average Net Assets 2.00%<F1> 2.00%<F1>
Ratio of Net Investment loss
to Average Net Assets (1.32%)<F1> (1.16%)<F1>
Portfolio Turnover Rate 70.70% --
Net Assets, End of Year (000's)
$3,008 $2,980
<FN>
<F1> The ratios of net expenses to average net assets would have increased
and net investment income to average net assets would have decreased by .84%
for the six months ended June 30, 1998, and 3.00% for the period ended
December 31, 1997, had the Adviser not reimbursed expenses. These ratios
are annualized.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000743773
<NAME> CARILLON FUND, INC.
<SERIES>
<NUMBER> 1
<NAME> BOND PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 111,212,294
<INVESTMENTS-AT-VALUE> 115,443,936
<RECEIVABLES> 4,935,686
<ASSETS-OTHER> 6,585
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 120,386,207
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 214,375
<TOTAL-LIABILITIES> 214,375
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 113,800,514
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 497,241
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,642,435
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,231,642
<NET-ASSETS> 120,171,832
<DIVIDEND-INCOME> 181,630
<INTEREST-INCOME> 4,036,858
<OTHER-INCOME> 0
<EXPENSES-NET> 312,184
<NET-INVESTMENT-INCOME> 3,906,304
<REALIZED-GAINS-CURRENT> 1,660,548
<APPREC-INCREASE-CURRENT> 372,048
<NET-CHANGE-FROM-OPS> 5,938,900
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,681,173
<DISTRIBUTIONS-OF-GAINS> 1,121,637
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,949,302
<NUMBER-OF-SHARES-REDEEMED> 1,695,923
<SHARES-REINVESTED> 424,638
<NET-CHANGE-IN-ASSETS> 20,279,736
<ACCUMULATED-NII-PRIOR> 264,047
<ACCUMULATED-GAINS-PRIOR> 1,111,587
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 255,436
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 312,184
<AVERAGE-NET-ASSETS> 108,912,583
<PER-SHARE-NAV-BEGIN> 11.29
<PER-SHARE-NII> 0.31
<PER-SHARE-GAIN-APPREC> 0.13
<PER-SHARE-DIVIDEND> 0.29
<PER-SHARE-DISTRIBUTIONS> 0.03
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.41
<EXPENSE-RATIO> 0.005
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000743773
<NAME> CARILLON FUND, INC.
<SERIES>
<NUMBER> 2
<NAME> EQUITY PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 284,333,592
<INVESTMENTS-AT-VALUE> 337,410,821
<RECEIVABLES> 3,253,209
<ASSETS-OTHER> 20,509
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 340,684,539
<PAYABLE-FOR-SECURITIES> 3,629,358
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 340,294
<TOTAL-LIABILITIES> 3,969,652
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 256,493,645
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 620,109
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 26,523,904
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 53,077,229
<NET-ASSETS> 336,714,887
<DIVIDEND-INCOME> 2,327,524
<INTEREST-INCOME> 850,808
<OTHER-INCOME> 0
<EXPENSES-NET> 1,039,566
<NET-INVESTMENT-INCOME> 2,138,766
<REALIZED-GAINS-CURRENT> 26,550,606
<APPREC-INCREASE-CURRENT> (18,093,981)
<NET-CHANGE-FROM-OPS> 10,595,391
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,750,357
<DISTRIBUTIONS-OF-GAINS> 43,531,579
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,174,383
<NUMBER-OF-SHARES-REDEEMED> 1,660,408
<SHARES-REINVESTED> 2,387,701
<NET-CHANGE-IN-ASSETS> 1,087,427
<ACCUMULATED-NII-PRIOR> 231,700
<ACCUMULATED-GAINS-PRIOR> 43,504,877
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 942,292
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,039,566
<AVERAGE-NET-ASSETS> 345,040,500
<PER-SHARE-NAV-BEGIN> 20.35
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 0.62
<PER-SHARE-DIVIDEND> 0.10
<PER-SHARE-DISTRIBUTIONS> 2.68
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 18.31
<EXPENSE-RATIO> 0.006
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000743773
<NAME> CARILLON FUND, INC.
<SERIES>
<NUMBER> 4
<NAME> CAPITAL PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 146,505,534
<INVESTMENTS-AT-VALUE> 145,860,088
<RECEIVABLES> 1,529,515
<ASSETS-OTHER> 8,415
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 147,398,018
<PAYABLE-FOR-SECURITIES> 1,321,794
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 950,267
<TOTAL-LIABILITIES> 2,272,061
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 141,280,985
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 284,123
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,206,295
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (645,446)
<NET-ASSETS> 145,125,957
<DIVIDEND-INCOME> 605,763
<INTEREST-INCOME> 2,636,955
<OTHER-INCOME> 0
<EXPENSES-NET> 569,767
<NET-INVESTMENT-INCOME> 2,672,951
<REALIZED-GAINS-CURRENT> 4,192,027
<APPREC-INCREASE-CURRENT> (9,389,428)
<NET-CHANGE-FROM-OPS> (2,524,450)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,849,751
<DISTRIBUTIONS-OF-GAINS> 7,315,800
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