CARILLON
FUND, INC.
Annual
Report
December 31, 1998
<PAGE>
CARILLON FUND, INC.
ANNUAL REPORT - TABLE OF CONTENTS
Investment Review
Equity Portfolio.................................... 2
Capital Portfolio .................................. 4
Bond Portfolio ..................................... 6
S&P 500 Index Portfolio ............................ 8
Statements of Assets and Liabilities ..................10
Statements of Operations ..............................11
Statements of Changes in Net Assets ...................12
Schedule of Investments
Equity Portfolio ...................................14
Capital Portfolio ..................................17
Bond Portfolio .....................................21
S&P 500 Index Portfolio ............................24
Notes to Financial Statements .........................31
Independent Auditor's Report ..........................38
<PAGE>
Carillon Fund, Inc.
EQUITY PORTFOLIO
Nineteen ninety-eight proved to be a year of greater-than-normal
divergent performances among various types of stocks, sizes of
stocks, industry groups, and geographic areas. Growth stocks
performed better than value stocks, large stocks did much better
than smaller stocks, technology and service industries
outperformed manufacturing and energy, and the U.S. and Europe
fared better than Latin America and Asia. Because of these
dichotomies in performance, just owning a stock mutual fund gave
an investor little indication about what results they
experienced in 1998. It was a very frustrating year for
professional mutual fund managers, as more than 85% of equity
mutual funds lagged the performance of the benchmark S&P 500
Index and 66% of all common stocks in the U.S. equity universe
posted a negative return for the period. We are disappointed
with last year's results for the Equity Portfolio, which
suffered from poor sector allocation. The lower performance of
the Carillon Equity Portfolio this year can be attributed to two
factors:
1. Small capitalization stocks as measured by the
benchmark Russell 2000 Index lagged large
capitalization stocks this year by a margin of more
than 30%. While the market fundamentals support the
smaller capitalization stocks' story, the last several
years have favored large capitalization stocks.
2. The Portfolio's position in energy-related issues held
back performance as oil and natural gas prices
languished due to sluggish global demand and warmer
weather, respectively.
We believe that 1999 will be a more favorable year for active
stock selection strategies. As expectations for overall
corporate profitability continue to be revised downward,
individual security selection becomes increasingly important.
In the coming year our focus will be on companies with
accelerating earnings growth, solid market positions, and clean
balance sheets. As always, we will also pay strong
consideration to valuation levels in our search for good
companies at compelling prices.
Stock Characteristics
<TABLE>
<CAPTION>
3-Year 3-Year
Price/ Average Average Market
Earnings Revenue Earnings Capitalization*
Ratio* Growth* Growth* ($ millions)
<S> <C> <C> <C> <C>
Carillon
Equity Portfolio 15 25% 19% 700
S&P 500
Stock Index 32 7% 11% 20,000
</TABLE>
*Averages based on data from the Baseline Database as of
12/31/98
As illustrated by the above table, the companies that the Equity
Portfolio own have enjoyed three-year average sales growth rate
approximately three times greater and earnings per share growth
approximately two times greater than the average company in the
S&P 500 Index. These companies' stocks however are priced at an
average price/earnings multiple that is less than one-half that
of the Index. We look forward to a year of improving
performance as markets recognize the relative value inherent in
our individual securities.
Comparison of Change in Value of $10,000 Investment
(The line graph shown here compares Carillon Equity Portfolio on
an annual basis with the Russell 2000 Index and the Consumer
Price Index for the period December 31, 1988 through December
31, 1998. The following table appears at the upper left of the
graph.)
<TABLE>
<CAPTION>
1 Year 5 Year 10 Year
<C> <C> <C>
- -15.3% 10.8% 11.4%
</TABLE>
Past performance is not predictive of future results.
<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 and Michelle Stevens
- ---------------------------------------------------------
Highlights
On December 31, 1998, the Equity Portfolio had net assets of
$248,782,808 and diversified holdings of:
Common Stocks 95.2%
Short-Term and Other 4.8%
As an investor in the Carillon Equity Portfolio, for every $1 you
had invested on December 31, 1998, your fund owned:
(the following percentages are graphically represented as portions
of a dollar bill)
Real Estate 11.5%
Banking and Financial Service 15.2%
Consumer Nondurable 13.6%
Consumer Cyclical 9.7%
Capital Goods 4.8%
Technology 9.5%
Energy/Utilities 10.5%
Manufacturing 14.7%
Short-Term and Other 4.8%
Transportation 5.3%
Service 0.4%
International holdings comprised 4% of net assets in the Equity
Portfolio.
TOP TEN HOLDINGS
1. Vtech Holdings Limited
2. FPIC Insurance Group, Inc.
3. Jefferies Group, Inc.
4. CompX International, Inc.
5. Matthews International Corp.
6. NCI Building Systems
7. D.R. Horton, Inc.
8. Strattec Security Corp.
9. Comair Holdings, Inc.
10. Cybex Corp.
Morningstar, Inc. ratings are updated each month. The composite
rating is calculated using a weighted-average of the three (two
stars shown in parentheses), five (two stars shown in parentheses)
and ten (one star shown in parentheses) year ratings. These ratings
are based on each period's risk-adjusted average annual total
returns (including the impact of insurance expense charges). Ten
percent of the funds in a category receive five stars, the next
22.5% receive four stars and the next 35% receive three stars.
<PAGE>
Carillon Fund, Inc.
CAPITAL PORTFOLIO
The Capital Portfolio's performance this year was very
disappointing due primarily to four factors:
1. An underweighted position in equities and exposure to out-
of favor international markets during the first several
months of the year;
2. The dramatic underperformance of small capitalization
stocks which posted negative returns for the year versus
positive returns for large capitalization indexes;
3. An overweighted position in corporate bonds which did not
perform as well as US Treasuries;
4. Weak oil and natural gas markets which negatively impacted
the energy-related issues within the Portfolio.
While the Portfolio continues to hold a majority of its stock
positions in smaller companies, many new purchases have been
made in the mid and large cap arena where value has presented
itself. The stocks that the Capital Portfolio holds are of
companies with sound financial fundamentals, good growth
prospects, and are selling at compelling valuations which gives
us confidence that they will provide a solid return over time.
The funds position in energy-related equities was reduced
significantly during the fourth quarter of 1998 and is currently
not an overweighted sector in relation to either the S&P 500 or
the Russell 2000 Index.
The Capital Portfolio will continue to adhere to its discipline
of buying sound companies at good prices, a strategy that we
believe is prudent. In addition, the Portfolio will maintain a
fixed income exposure equal to about 35-50% of the fund's assets
which should reduce the volatility and risk profile of the fund
over time. As of December 31, 1998 the Capital Portfolio's
asset allocation was 60% stocks, 38% bonds, and 2% money market
instruments.
The Capital Portfolio is a professionally managed asset allocation
fund that shifts assets among stocks, bonds, and money market
instruments to take advantage of opportunities that the portfolio
manager believes will yield the most desirable returns. The table on
the following page highlights the allocation of fund assets at
December 31, 1998, six months ago, and one year ago.
Comparison of Change in Value of $10,000 Investment
(The line graph shown here compares Carillon Capital Portfolio
on an annual basis with S&P 500 Stock Index, Lehman Aggregate
Bond Index and Consumer Price Index for the period May 1, 1990
through December 31, 1998. The following table appears at the
upper left of the graph.)
<TABLE>
<CAPTION>
Carillon Capital Portfolio Average Annual Total Return
1 Year 5 Year Since Inception
<C> <C> <C>
- -13.3% 4.3% 7.6%
</TABLE>
Past performance is not predictive of future results.
<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 55-65% stocks,
35-40% bonds, and 0-5% 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 December 31, 1998, the Capital Portfolio had net assets of
$109,678,082 and diversified holdings of:
<TABLE>
<CAPTION>
12/31/98 12/31/97 Long-Term
<S> <C> <C> <C>
Stocks 61.0% 38.6% 55-65%
Bonds and Notes 38.8% 39.6% 35-45%
Short-Term and Other .2% 21.8% 0-5%
</TABLE>
As an investor in the Carillon Capital Portfolio, for every $1
you had invested on December 31, 1998, your fund owned:
(the following percentages are graphically represented as
portions of a dollar bill)
U.S. Stocks 57.2%
International Stocks 3.8%
U.S. Government and Agency Securities 13.0%
Corporate Bonds 23.1%
Short-Term and Other .2%
Morgtgage and Asset Backed Securities 2.7%
Top Ten Holdings
1. ECI Telecommunications
2. Duff & Phelps Credit Rationg Company
3. Jefferies Group, Inc.
4. Vtech Holdings Limited
5. Winsloew Furniture, Inc.
6. Invacare Corporation
7. Investment Tech Grouped
8. Scientific Games Holding Corporation
9. D.R. Horton, Inc.
10. Fahnestock Viner Holdings Class A
Morningstar, Inc. ratings are updated each month. The composite
rating is calculated using a weighted-average of the three (two
stars shown in parentheses), and five (two stars shown in
parentheses) year ratings. These ratings are based on each
period's risk-adjusted average annual total returns (including
the impact of insurance expense charges). The top ten percent of
the funds in a category receive five stars, the next 22.5%
receive four stars and the next 35% receive three stars, the
following 22.5% get 2 stars, and the bottom 10% receive one
star.
<PAGE>
Carillon Fund, Inc.
BOND PORTFOLIO
During 1998, investors received a lesson in risk. US Treasuries
benefited from being the safe haven, outperforming all other
major US fixed-income asset classes. Throughout the 1990s,
investors were conditioned to prices moving up and spreads
moving tighter. The 1997 Asian crisis was viewed as a temporary
blip and the fixed-income market trudged to even tighter levels
during the first half of 1998. However, the landscape
drastically changed during the second half of 1998 as credit,
interest rate and liquidity risks increased dramatically. The
Federal Reverse moved quickly, lowering the funds rate three
times from September to November. The easing helped calm the
markets but risk premiums still remain at much higher levels
than a few months previously.
The US economy continues to roll along. For the third year in a
row the economy grew at a rate close to 4%, while inflation
remained low. Strong growth drove the unemployment rate to
thirty year lows, while the flight to quality prompted by
problems abroad and lower inflationary expectations resulted in
record lows in US treasury bond yields. The stock market put in
a stellar but wild performance, reaching new highs in early
summer, then plunging rapidly only to leap back to a new record
high by the close of the year.
For the year ended December 31, 1998, the Carillon Bond Fund had
a total return of 6.52% compared to a 8.69% return for the
Lehman Aggregate Index and a 7.67% average return for the Lipper
category respectively. The under performance is largely
attributed to the fund's overweight in the corporate sector
versus the treasury sector. As mentioned above, treasuries
outperformed all other sectors of the US fixed income market
during 1998. The greatest damage occurred in the lower rated
high yield sector of the corporate market as spreads
dramatically widened in the second half of the year. Given the
uncertainty existing in the investment world at the present
time, the fund has shifted the overall investment strategy to a
more conservative approach. The high yield portion of the fund
has been reduced and upgraded. However, the fund will continue
to maintain a certain level of high yield exposure as we feel it
represents an attractive long-term asset class which has greatly
benefited the overall fund performance in the past. Going
forward, the active sector allocation strategy and individual
security selection practiced in the past will continue to
provide strong long-term performance while maintaining a high
quality portfolio.
Morningstar, Inc. assigned the Bond Portfolio its (five stars
are drawn here) risk-adjusting rating as of December 31, 1998.
The top ten percent of the funds in a Morningstar category
receive this highest rating. The Portfolio continues its strong,
long-term rankings based on total returns surveyed by Lipper in
its Variable Insurance Product Performance Analysis Report.
<TABLE>
<CAPTION>
Lipper Corporate Bond (BBB) Rankings as of December 31, 1998
1- 3- 5- 10-
Year Year Year Year
<S> <C> <C> <C> <C>
Carillon Bond Portfolio Ranking 28 3 3 3
Total Number of Funds Ranked 35 30 28 20
</TABLE>
Rankings based on total return performance.
Past performance is no guarantee of future results.
(the line graph shown here compares the Carillon Bond Portfolio
on an annual basis with Lehman Aggregate Bond Index and Consumer
Price Index for the period December 31, 1988 through December
31, 1998. The following table appears at the upper left of the
graph.)
<TABLE>
<CAPTION>
Carillon Bond Portfolio Average Annual Total Return
1 Year 5 Year 10 Year
<C> <C> <C>
6.5% 8.2% 9.8%
</TABLE>
Past performance is not predictive of future results.
<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 beloe
investment grade securities, convertible debt
securities, convertible preferred and preferred
stock, or other securities.
INCEPTION: August 15, 1984
MANAGERS: Gary R. Rodmaker and Michael J. Schultz (effective
November 1, 1998)
- ---------------------------------------------------------
Highlights
On December 31, 1998, the Bond Portfolio had net assets of
$113,762,311 and diversified holdings of:
Bonds 101.8%
Short-Term and Other -1.8%
As an investor in the Carillon Bond Portfolio, for every $1 you
had invested on December 31, 1998, your fund owned:
(the following percentages are graphically presented as portions
of a dollar bill)
Corporate Bonds 43.5%
Mortgage and Asset-Backed Securities 13.4%
US Treasuries 44.9%
Short-Term and Other -1.8%
Morningstar, Inc. ratings are updated each month. The composite
rating is calculated using a weighted-average of the three(4
stars drawn in parentheses), five (5 stars drawn in parentheses)
and ten (5 stars drawn in parentheses) year ratings. These
ratings are based on each period's risk-adjusted average annual
total returns (including the impact of insurance expense
charges). Ten percent of the funds in a category receive five
stars, the next 22.5% receive four stars and the next 35%
receive three stars.
<PAGE>
Carillon Fund, Inc.
S&P 500 INDEX PORTFOLIO
Common stocks, as measured by the S&P 500 Index, posted
excellent returns during 1998. The S&P 500 Index gained 28.58
percent, while the Carillon S&P 500 Index Portfolio returned
28.54 percent. The Carillon S&P 500 Index Portfolio was ranked
#8 out of 30 similar funds by Lipper Analytical Variable
Insurance Products Performance Analysis Service based on its
1997 total return results. Since its inception on December 29,
1995, the Carillon S&P 500 Index Portfolio is ranked #2 out of
21 similar funds by Lipper.
The primary objective of the Carillon S&P 500 Index Portfolio is
to produce a return that is highly correlated 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.
For the year 1998, the difference was only 4 basis points which
included approximately 42 basis points in fees and expenses
during the year.
The method used to create the Carillon S&P 500 Index Portfolio
at its inception in 1995 was to select 300 stocks from the
underlying S&P 500 Index that would closely replicate the
performance of the actual index. These 300 stocks were chosen to
ensure a high correlation with the index while keeping
transaction costs at a minimum. By the end of 1998, the number
of stocks held was increased to 450 to more closely track the
Index while keeping costs low. During that time, the Portfolio
grew from its original size of $10.0 million to its current size
of $131.3 million at December 31, 1998. The 400 stocks held
represent approximately 96 percent of the total market value of
the Index. Furthermore, the Carillon S&P 500 Index Portfolio
was carefully constructed to ensure that the weighting in each
of S&P's 90 industry categories varied by less than 1 percent
versus the actual S&P 500 Index.
The Portfolio is designed to be highly correlated to the S&P 500
Index. Cash is held to a minimum, since it does not correlate
with the S&P 500 index, and transactions are limited to keep
expenses low. During 1998, the portfolio maintained a 99.9
percent correlation with the underlying S&P 500 Index.
In 1999, we will continue to build upon the success we have had
in managing the Carillon S&P 500 Index Portfolio. We expect the
Portfolio will continue to grow as investors are attracted to
the excellent returns that have been provided since the
Portfolio's inception. We are confident that we can, and will,
continue to provide a return that is highly correlated with the
underlying S&P 500 Index.
(A line graph shown here compares Carillon S&P 500 Index
Portfolio on a monthly basis with S&P 500 Stock Index and
Consumer Price Index for the period December 31, 1995 through
December 31, 1998. The following table appears at the upper
left of the graph.)
<TABLE>
<CAPTION>
1-Year 3-Year Since Inception
<C> <C> <C>
28.5% 28.2% 28.2%
</TABLE>
Past performance is not predictive of future results.
<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 December 31, 1998, the S&P 500 Index Portfolio had net assets
of $131,344,785 and diversified holdings of:
Common Stocks 96.6%
Short-Term and Other 3.4%
As an investor in the Carillon S&P 500 Index Portfolio, for
every $1 you had invested on December 31, 1998, your fund owned:
(the following percentages are graphically represented as
portions of a dollar bill)
Transportation .9%
Banking and Financial Service 15.3%
Service 1.7%
Capital Goods 6.8%
Technology 18.2%
Consumer Cyclical 8.1%
Manufacturing 3.7%
Consumer Nondurable 25.1%
Short-Term, Futures and Other 3.4%
Energy 5.5%
Utilities 11.3%
Top Ten Holdings
1. Microsoft Corporation
2. General Electric Company
3. Intel Corporation
4. Wal-Mart Stores, Inc.
5. Exxon Corporation
6. Merck & Company Inc.
7. International Business Machines
8. Icoca-Cola Company
9. Pfizer, Inc.
10. Cisco Systems, Inc.
"Standard & Poor's (R)", "S&P(R)", "S&P 500(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
December 31, 1998
<TABLE>
<CAPTION>
Equity Capital Bond S&P 500 Index
Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C>
ASSETS
Investments in
securities, at value $249,084,446 $109,810,560 $125,954,016 $132,530,285
(cost $260,807,637;
$122,506,433;
$122,738,988;
$99,748,400)
Cash --- --- --- 408
Receivables:
Shares sold 13,845 4,575 28,918 522,067
Securities sold 158,992 95,917 --- 674,863
Interest and Dividends 546,959 790,063 1,927,178 133,145
Variation Margin --- --- --- 14,725
Prepaid expenses
and other 21,200 8,567 6,424 4,254
------------ ------------ ------------ ------------
249,825,442 110,709,682 127,916,536 133,879,747
------------ ------------ ------------ ------------
LIABILITIES
Payables:
Investment securities
purchased --- --- --- 1,668,247
Shares redeemed 886,644 937,634 13,962,489 800,771
Investment advisory fees 118,980 64,923 50,741 29,782
Custodian and portfolio
accounting fees 25,472 17,135 10,201 12,145
Professional fees 10,472 10,421 11,598 10,788
Other accrued expenses 1,066 1,487 1,308 13,229
Deferred directors'
compensation --- --- 117,888 ---
------------ ------------ ------------ ------------
1,042,634 1,031,600 14,154,225 2,534,962
------------ ------------ ------------ ------------
NET ASSETS
Paid-in capital 230,628,352 124,790,149 110,569,343 97,290,742
Undistributed net
investment income 548,105 233,033 382,160 81,932
Accumulated net
realized gain/(loss)
on investments and
futures contracts 29,329,542 (2,649,227) (404,220) 1,028,876
Net unrealized
appreciation/
(depreciation)
on investments,
futures contracts,
and translation of
assets and liabilities
in foreign currencies (11,723,191) (12,695,873) 3,215,028 32,943,235
------------ ------------ ------------ ------------
$248,782,808 $109,678,082 $113,762,311 $131,344,785
============ ============ ============ ============
Shares authorized
($.10) par value 40,000,000 30,000,000 30,000,000 30,000,000
Shares outstanding 16,703,745 9,792,816 10,219,371 6,738,069
Net asset value,
offering and
redemption price
per share $14.89 $11.20 $11.13 $19.49
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
CARILLON FUND, INC.
STATEMENTS OF OPERATIONS
Year Ended December 31, 1998
<TABLE>
<CAPTION>
S&P 500
Equity Capital Bond Index
Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 1,391,343 $ 4,340,298 $ 8,498,462 $ 234,683
Dividends (net of
foreign withholding
taxes of $180,249;
$74,781; $0; $11,694) 4,827,377 1,059,547 181,630 1,298,904
------------ ------------ ----------- -----------
6,218,720 5,399,845 8,680,092 1,533,587
------------ ------------ ----------- -----------
EXPENSES
Investment advisory
fees 1,704,750 914,153 551,146 274,418
Custodian fees
and expenses 74,271 44,000 26,932 36,950
Portfolio accounting
fees 54,418 41,264 45,638 39,738
Professional fees 10,786 11,529 10,637 9,316
Director's fees 12,473 12,505 12,940 12,478
Transfer agent fees 6,513 7,254 7,376 6,683
Other 39,537 22,838 22,541 9,779
------------ ------------ ----------- -----------
1,902,748 1,053,543 677,210 389,362
------------ ------------ ----------- -----------
NET INVESTMENT INCOME 4,315,972 4,346,302 8,002,882 1,144,225
------------ ------------ ----------- -----------
REALIZED AND
UNREALIZED
GAIN/(LOSS)
Net realized gain/
(loss) on
investments 29,356,244 (2,555,124) (382,978) 396,848
Net realized gain
on futures contracts --- --- --- 791,348
29,356,244 (2,555,124) (382,978) 1,188,196
------------ ------------ ----------- -----------
Net change in
unrealized
appreciation/
(depreciation)
in investments,
futures contracts
and translation
of assets and
liabilities in
foreign currencies (82,894,401) (21,439,855) (644,567) 20,913,178
------------ ------------ ----------- -----------
NET REALIZED AND
UNREALIZED GAIN(LOSS) (53,538,157) (23,994,979) (1,027,545) 22,101,374
------------ ------------ ----------- -----------
NET INCREASE
(DECREASE)
IN NET ASSETS
FROM OPERATIONS $(49,222,185) $(19,648,677) $ 6,975,337 $23,245,599
============ ============ =========== ===========
</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
Year Ended December 31,
1998 1997
<S> <C> <C>
OPERATIONS
Net investment income $ 4,315,972 $ 3,840,384
Net realized gain/(loss) on investments
and futures 29,356,244 43,526,118
Net change in unrealized appreciation/
(depreciation) on investments,futures
contracts, and translation of assets and
liabilities in foreign currencies (82,894,401) 10,788,049
------------ ------------
(49,222,185) 58,154,551
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (3,999,567) (4,343,382)
Net realized gain (43,531,579) (34,344,113)
------------ ------------
(47,531,146) (38,687,495)
------------ ------------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 27,909,508 27,675,023
Reinvestment of distributions 47,531,146 38,687,495
Payments for shares redeemed (65,531,975) (38,325,837)
------------ ------------
9,908,679 28,036,681
------------ ------------
NET INCREASE/(DECREASE) IN NET ASSETS (86,844,652) 47,503,737
NET ASSETS
Beginning of year 335,627,460 288,123,723
------------ ------------
End of year $248,782,808 $335,627,460
============ ============
UNDISTRIBUTED NET INVESTMENT INCOME $ 548,106 $ 231,700
============ ============
FUND SHARE TRANSACTIONS
Sold 1,482,774 1,441,326
Reinvestment of distributions 2,544,159 2,276,903
Redeemed (3,814,089) (2,041,013)
------------ ------------
Net increase from fund share transactions 212,844 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
Year Ended December 31,
1998 1997
<S> <C> <C>
OPERATIONS
Net investment income $ 4,346,302 $ 6,609,920
Net realized gain/(loss) on investments
and futures (2,555,124) 7,443,577
Net change in unrealized appreciation/
(depreciation) on investments, futures
contracts, and translation of assets and
liabilities in foreign currencies. (21,439,855) (2,869,048)
------------ ------------
(19,648,677) 11,184,449
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (4,682,563) (7,176,810)
Net realized gain on investments (7,315,800) (12,519,532)
------------ ------------
(11,998,363) (19,696,342)
------------ ------------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 23,465,642 12,291,701
Reinvestment of distributions 11,998,363 19,696,342
Payments for shares redeemed (42,968,753) (33,940,166)
------------ ------------
(7,504,748) (1,952,123)
------------ ------------
NET INCREASE/(DECREASE) IN NET ASSETS (39,151,788) (10,464,016)
NET ASSETS
Beginning of year 148,829,870 159,293,886
------------ ------------
End of year $109,678,082 $148,829,870
============ ============
UNDISTRIBUTED NET INVESTMENT INCOME $ 233,033 $ 541,406
============ ============
FUND SHARE TRANSACTIONS
Sold 1,762,635 867,273
Reinvestment of distributions 925,235 1,450,496
Redeemed (3,453,975) (2,414,218)
------------ ------------
Net decrease from fund share transactions (766,105) (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
Year Ended December 31,
--------------------------
1998 1997
<S> <C> <C>
OPERATIONS
Net investment income $ 8,002,882 $ 6,405,311
Net realized gain/(loss) on
investments and futures (382,978) 1,127,264
Net change in unrealized
appreciation/(depreciation)
on investments, futures
contracts, and translation
of assets and liabilities
in foreign currencies (644,567) 1,821,402
------------ -----------
6,975,337 9,353,977
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (7,895,961) (5,860,151)
Net realized gain (1,121,637) (481,254)
------------ -----------
(9,017,598) (6,341,405)
------------ -----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 50,015,086 19,937,289
Reinvestment of distributions 9,017,598 6,341,405
Payments for shares redeemed (43,120,208) (15,033,299)
------------ -----------
15,912,476 11,245,395
------------ -----------
NET INCREASE IN NET ASSETS 13,870,215 14,257,967
NET ASSETS
Beginning of year 99,892,096 85,634,129
------------ -----------
End of year $113,762,311 $99,892,096
============ ===========
UNDISTRIBUTED NET INVESTMENT INCOME $ 383,384 $ 264,047
============ ===========
FUND SHARE TRANSACTIONS
Sold 4,379,828 1,786,820
Reinvestment of distributions 799,240 575,269
Redeemed (3,811,138) (1,358,088)
------------ -----------
Net increase from
fund share transactions 1,367,930 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
Year Ended December 31,
1998 1997
<S> <C> <C>
OPERATIONS
Net investment income $ 1,144,225 $ 640,069
Net realized gain/(loss) on investments
and futures 1,188,196 1,839,946
Net change in unrealized appreciation/
(depreciation) on investments, futures
contracts, and translation of assets and
liabilities in foreign currencies. 20,913,178 8,999,183
------------- -----------
23,245,599 11,479,198
------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (1,101,958) (642,656)
Net realized gain on investments (1,947,719) (270,297)
------------- -----------
(3,049,677) (912,953)
------------- -----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 58,542,452 35,592,857
Reinvestment of distributions 3,049,677 912,953
Payments for shares redeemed (6,037,935) (20,681,996)
------------- -----------
55,554,194 15,823,814
------------- -----------
NET INCREASE IN NET ASSETS 75,750,116 6,390,059
NET ASSETS
Beginning of year 55,594,669 29,204,610
------------- -----------
End of year $131,344,785 $55,594,669
============= ===========
UNDISTRIBUTED NET INVESTMENT INCOME $ 81,932 $ 39,665
============= ===========
FUND SHARE TRANSACTIONS
Sold 3,377,397 2,463,755
Reinvestment of distributions 175,601 66,017
Redeemed (345,887) (1,406,317)
------------- -----------
Net increase from fund share transactions 3,207,111 1,123,455
============= ===========
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
CARILLON FUND, INC.
SCHEDULE OF INVESTMENTS
EQUITY PORTFOLIO
DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS - 95.14%
BANKING & FINANCIAL SERVICE - 15.23%
Allied Capital Corporation 33,639 $ 582,375
Amresco, Incorporated* 110,000 962,500
Banco BHIF ADR 127,500 988,125
Banco Latinoamericano De Exportanciones
Sponsored ADR 75,000 1,246,875
Charter One Financial, Incorporated 115,762 3,212,396
Chile Fund, Incorporated 100,000 906,250
Corvel Corporation* 66,000 2,326,500
Duff & Phelps Credit Rating Company 65,000 3,562,813
Fahnestock Viner Holdings 150,000 2,625,000
First Bell Bancorp, Incorporated 100,000 1,550,000
FPIC Insurance Group, Incorporated* 126,000 6,024,375
Hamilton Bancorp, Incorporated* 50,000 1,334,375
Jefferies Group, Incorporated 105,000 5,210,625
Peoples Heritage Financial, Incorporated 100,000 2,000,000
Raymond James Financial Corporation 148,725 3,141,816
UICI* 90,000 2,205,000
------------
37,879,025
------------
CAPITAL GOODS - 4.76%
CTS Corporation 50,000 2,175,000
Encore Wire Corporation* 200,000 1,850,000
Gulf Island Fabrication, Incorporated* 103,000 798,250
Lindsay Manufacturing Company 227,689 3,372,643
LSI Industries 140,000 3,141,250
Unifab International, Incorporated* 61,000 488,000
------------
11,825,143
------------
CONSUMER CYCLICAL - 9.70%
CPAC, Incorporated 114,200 856,500
Claire's Stores, Incorporated 58,100 1,191,050
Maxwell Shoe Company, Incorporated* 167,500 1,832,031
National RV Holdings, Incorporated* 100,000 2,575,000
Nautica Enterprises, Incorporated* 90,500 1,357,500
NCI Building Systems, Incorporated* 161,400 4,539,375
Stanley Furniture Company* 158,800 2,898,100
Strattec Security Corporation* 145,000 4,350,000
Supreme International Corporation* 162,500 1,950,000
Toll Brothers* 115,000 2,594,688
------------
24,144,244
------------
CONSUMER NON-DURABLE - 13.56%
Anchor Gaming* 53,000 2,987,874
Charoen Pok Feedmill ADR* 100,000 489,900
Dairy Farm International Holdings
Sponsored ADR 200,000 1,150,000
Dentsply International, Incorporated 33,000 849,750
Ethan Allen Interiors 41,600 1,705,600
Equity Marketing, Incorporated* 105,500 870,374
Gymboree Corporation* 130,000 828,750
ICN Pharmeaceuticals, Incorporated 79,900 1,807,737
Invacare Corporation 117,000 2,808,000
Laboratorio Chile ADR 156,700 2,252,562
Landry's Seafood Restaurants* 277,000 2,077,500
Luxottica Group S.P.A. 185,000 2,220,000
Orthofix International N.V.* 125,536 1,757,503
Richfood Holdings, Incorporated 172,000 3,569,000
Schlotzsky's, Incorporated* 156,900 1,549,387
Scientific Games Holdings Corporation* 146,100 2,757,637
St. John Knits, Incorporated 105,000 2,730,000
Young Innovations, Incorporated* 101,000 1,325,624
------------
33,737,198
------------
ENERGY - 9.93%
Atwood Oceanics, Incorporated* 55,000 935,000
Basin Exploration, Incorporated* 185,000 2,324,062
Bayard Drilling Technologies* 275,000 1,375,000
Cabot Oil & Gas Corporation 85,000 1,275,000
Callon Petroleum Company* 165,000 1,918,125
Comstock Resources, Incorporated* 330,000 1,010,625
Forest Oil Corporation* 100,000 850,000
Giant Industries, Incorporated 140,000 1,312,500
Global Industries, Incorporated* 62,500 382,813
Houston Exploration Company* 100,000 1,987,500
Marine Drilling Company, Incorporated* 210,000 1,614,375
Newfield Exploration Company* 100,000 2,087,500
Offshore Logistics, Incorporated* 145,300 1,725,438
OYO Geospace Corporation* 10,500 90,563
Pride International, Incorporated* 160,000 1,130,000
Range Resources Corporation 211,452 726,866
Southern Energy Homes Blder. 200,000 1,225,000
Southern Mineral Corporation* 350,000 251,563
Stone Energy Corporation* 63,000 1,811,250
Superior Energy Services, Incorporated* 240,000 682,500
------------
24,715,680
------------
MANUFACTURING - 14.68%
American Building Company* 75,000 1,837,500
Carbide Graphite Group, Incorporated* 81,000 1,194,750
Champion Enterprises, Incorporated* 75,000 2,053,125
CompX International, Incorporated* 197,000 5,195,875
Cotelligent, Incorporated* 100,000 2,131,250
DeBeers Consolidated Mines ADR 125,000 1,593,750
D.R. Horton, Incorporated 190,000 4,370,000
Fibermark, Incorporated* 115,000 1,566,875
Giant Cement Holding, Incorporated* 95,000 2,351,250
J. Ray McDermott, Incorporated* 45,000 1,099,688
Matthews International Corporation - Class A 154,000 4,851,000
Mueller Industries* 60,000 1,218,750
Northwest Pipe Company* 125,800 2,028,525
Omniquip International, Incorporated 218,000 3,270,000
STB Systems, Incorporated* 180,000 1,203,750
Zindart Limited ADR* 76,600 550,563
------------
36,516,651
------------
REAL ESTATE - 11.46%
City Developments Limited 250,000 1,083,350
Commercial Net Lease Realty 13,200 174,900
Felcor Lodging Trust, Incorporated 115,600 2,666,025
Gables Residential Trust 80,000 1,855,000
Healthcare Realty Trust 116,400 2,597,175
Hospitality Properties Trust 64,000 1,544,000
Lexington Corporation Properties Trust 100,000 1,256,250
Mid-America Apartment Communities 90,000 2,041,875
Mills Corporation 85,000 1,689,375
Omega Healthcare Investors, Incorporated 30,000 905,625
Pacific Gulf Properties 74,000 1,484,625
Parkway Properties, Incorporated 109,000 3,406,250
Prime Retail, Incorporated 150,000 1,471,875
RFS Hotel Investors, Incorporated 115,700 1,417,325
Trinet Corporate Realty Trust, Incorporated 80,000 2,140,000
United Investor Realty Trust, Incorporated 200,000 1,350,000
Winston Hotels, Incorporated 175,000 1,432,813
------------
28,516,463
------------
SERVICE - .37%
Kevco, Incorporated* 128,000 928,000
------------
TECHNOLOGY - 9.51%
Axiohm Technology* 11,438 74,347
Cybex Corporation* 133,500 3,921,563
ECI Telecommunications 106,100 3,779,813
ESC Medical Systems Limited* 120,000 1,260,000
Nam Tai Electronics, Incorporated 250,000 2,812,500
Performance Technologies, Incorporated* 115,500 1,515,938
SPSS, Incorporated* 127,500 2,406,563
Vertex Communications Corporation* 104,000 1,651,000
Vtech Holdings Limited 142,900 6,234,684
------------
23,656,408
------------
TRANSPORTATION - 5.33%
America West Holding Corporation* 100,000 1,700,000
Comair Holdings, Incorporated 120,000 4,050,000
FDX Corporation* 25,000 2,225,000
Gulfmark Offshore, Incorporated* 70,000 1,102,500
Midwest Express Holdings* 123,750 3,256,172
Trico Marine Services* 190,000 926,250
------------
13,259,922
------------
UTILITIES - .61%
Washington Water Power* 79,000 1,520,750
------------
Total Common Stocks (cost $248,237,222) 236,699,484
------------
FOREIGN STOCK - .70%
HONG KONG - .70%
Smartone Telecommunications 626,000 1,737,250
------------
Total Foreign Stock (cost $1,811,553) 1,737,250
------------
WARANTS AND RIGHTS - .03%
TECHNOLOGY - .03%
Nam Tai Electronics, Incorporated* 62,500 78,125
------------
Total Warrants and Rights (cost $189,275) 78,125
------------
SHORT-TERM INVESTMENTS - 4.25%
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
COMMERCIAL PAPER - 1.20%
DuPont (E.I.) DeNemours (5.300% due 01/26/99) $3,000,000 2,988,958
------------
2,988,958
------------
VARIABLE RATE DEMAND NOTES<F1> - 3.05%
Firstar Bank (5.378% due 12/31/31) 7,580,629 7,580,629
------------
7,580,629
------------
Total Short-Term Investments (cost $10,569,587) 10,569,587
------------
TOTAL INVESTMENTS - 100.12%
(cost $260,807,637)<F2> 249,084,446
------------
OTHER ASSETS AND LIABILITIES - (.12%) (301,638)
------------
TOTAL NET ASSETS - 100% $248,782,808
============
____________
*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 shown is as of December 31, 1998.
<F2> Cost for income tax purposes is $261,125,710, which is substantially the
same for financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of December 31, 1998 was $48,961,760 and
($61,003,024) respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
Carillon Fund, Inc.
Schedule of Investments
CAPITAL PORTFOLIO
DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL VALUE
<S> <C> <C>
COMMON STOCKS - 55.66%
BANKING & FINANCIAL SERVICE - 9.11%
AFP Provida S.A. 80,000 $ 1,075,000
Amresco, Incorporated* 56,000 490,000
Duff & Phelps Credit Rating Company 37,000 2,028,063
Fahnestock Viner Holdings Class A 86,500 1,513,750
Investment Tech Group* 26,500 1,644,656
Jefferies Group, Incorporated 40,000 1,985,000
Texas Regional Bancshares-A 50,000 1,253,125
------------
9,989,594
------------
CAPITAL GOODS - 1.70%
CTS Corporation 25,000 1,087,500
LMI Aerospace, Incorporated* 124,000 775,000
------------
1,862,500
------------
CONSUMER CYCLICAL - 4.06%
Claire's Stores, Incorporated 46,000 943,000
Nautica Enterprises, Incorporated* 44,500 667,500
Newmark Homes Corporation* 160,000 1,120,000
Winsloew Furniture, Incorporated* 65,000 1,722,500
------------
4,453,000
------------
CONSUMER NON-DURABLE - 11.51%
Anchor Gaming* 24,000 1,353,000
Corrections Corporation of America* 16,000 282,000
DENTSPLY International, Incorporated 27,000 695,250
ESC Medical Systems Limited* 58,000 609,000
Invacare Corporation 70,000 1,680,000
ICN Pharmaceuticals, Incorporated 62,000 1,402,750
Landry's Seafood Restaurants, Incorporated* 98,000 735,000
Luxottica Group S.p.A. Sponsored ADR 95,000 1,140,000
Orthofix International N.V.* 65,000 910,000
Richfood Holdings, Incorporated 63,000 1,307,250
Schlotzsky's, Incorporated* 88,500 873,937
Scientific Games Holdings Corporation* 87,000 1,642,124
------------
12,630,311
------------
ENERGY - 4.40%
Dawson Geophysical Company* 84,400 606,624
Gulf Island Fabrication, Incorporated* 83,500 647,125
Marine Drilling Company, Incorporated* 65,000 499,687
Miller Exploration Company* 187,000 841,500
OYO Geospace Corporation* 17,500 150,937
Pride International, Incorporated* 71,000 501,437
Range Resources Corporation 57,998 199,368
Stone Energy Corporation* 14,000 402,500
YPF S.A. Sponsored ADR 35,000 977,813
------------
4,826,991
------------
MANUFACTURING - 8.27%
American Building Company* 50,000 1,225,000
Champion Enterprises, Incorporated* 36,000 985,500
D.R. Horton, Incorporated 70,000 1,610,000
DeBeers Consolidated Mines ADR 32,000 408,000
Lindberg Corporation 100,000 909,375
National RV Holdings, Incorporated* 30,000 772,500
Northwest Pipe Company* 79,600 1,283,550
Omniquip International, Incorporated 86,000 1,290,000
York Group, Incorporated 62,000 589,000
------------
9,072,925
------------
REAL ESTATE - 4.42%
FelCor Lodging Trust, Incorporated 33,000 761,063
Healthcare Realty Trust 32,000 714,000
Parkway Properties, Incorporated 47,000 1,468,750
St. Joe Company 44,500 1,042,969
Trinet Corporate Realty Trust 32,000 856,000
------------
4,842,782
------------
TECHNOLOGY - 7.48%
Cybex Corporation* 34,500 1,013,438
ECI Telecommunications 92,000 3,277,500
Nam Tai Electronics, Incorporated 77,333 869,996
Vertex Communications Corporation* 76,000 1,206,500
Vtech Holdings Limited 42,000 1,832,447
------------
8,199,881
------------
TRANSPORTATION - 3.83%
American West Holdings, Incorporated* 65,000 1,105,000
Comair Holdings, Incorporated 25,000 843,750
FDX Corporation* 12,000 1,068,000
Midwest Express Holdings, Incorporated* 45,000 1,184,063
------------
4,200,813
------------
UTILITIES - .88%
Washington Water Power* 50,000 962,500
------------
Total Common Stocks (cost $73,049,298) 61,041,297
------------
UNIT INVESTMENT TRUST - 3.93%
S & P Depository Receipt 35,000 4,315,938
------------
Total Unit Investment Trust (cost $3,880,850) 4,315,938
------------
WARRANTS AND RIGHTS - .02%
ELECTRONIC - .02%
Nam Tai Electronics Warrants* 14,333 17,916
------------
Total Warrants and Rights (cost $43,406) 17,916
------------
FOREIGN COMMON STOCK - 1.43%
HONG KONG - 1.21%
Smartone Telecommunications 310,000 860,300
Techtronic Industries 2,617,800 466,300
------------
1,326,600
------------
MALAYSIA - .22%
Bumi Armada Berhad* 500,000 239,411
------------
Total Foreign Common Stock (cost $2,434,732) 1,566,011
------------
U.S. TREASURY OBLIGATIONS - 9.05%
5.625% due 02/28/01 $3,000,000 3,060,939
7.500% due 02/15/05 6,000,000 6,868,128
------------
9,929,067
------------
Total U.S. Treasury Notes ($9,907,021) 9,929,067
------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 3.55%
FEDERAL HOME LOAN MORTGAGE CORPORATION - .37%
1662 H (6.250% due 01/15/09) 343,135 345,297
1399 PAC (7.000% due 09/15/22) 62,871 63,056
------------
408,353
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.41%
Remic 93-163 PN
(7.000% due 07/25/07) 1,500,000 1,541,049
------------
PRIVATE SECTOR - 1.77%
GE Capital MTG Services (6.000% due 08/25/09) 498,505 485,290
Prudential Home Mortgage Securities
(7.500% due 07/25/10) 464,890 471,109
MSC 1998-WF 1(7.120% due 01/15/08) 1,000,000 988,130
------------
1,944,529
------------
Total Collateralized Mortgage Obligations
(cost $3,738,586) 3,893,931
MORTGAGE - BACKED SECURITIES - 2.14%
FEDERAL HOME LOAN MORTGAGE CORPORATION - .70%
7.500% due 06/01/07 $ 30,454 $ 30,747
9.500% due 10/01/08 128,515 135,879
8.250% due 03/01/12 85,303 88,492
8.500% due 03/01/16 52,111 54,590
7.500% due 07/01/17 21,418 21,940
11.000% due 04/01/19 23,643 25,874
11.000% due 11/01/19 52,349 57,289
11.000% due 05/01/20 125,022 136,785
11.000% due 06/01/20 195,461 213,939
------------
765,535
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.19%
9.500% due 09/01/05 85,059 90,097
9.000% due 11/01/05 22,334 23,473
8.000% due 05/01/07 81,483 83,843
5.500% due 01/01/09 675,528 670,862
5.500% due 04/01/09 443,356 439,237
------------
1,307,512
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - .25%
9.000% due 11/15/16 79,053 85,135
10.500% due 11/20/19 121,012 133,847
9.000% due 12/15/19 55,308 59,324
------------
278,306
------------
Total Mortgage Backed Securities
(cost $2,229,715) 2,351,353
------------
ASSET - BACKED SECURITY - .89%
PaineWebber Mtg. Accpt. 96 M1 E
(7.655% due 01/02/12) 1,005,805 975,319
------------
Total Asset-Backed Securities
(cost $1,040,070) 975,319
------------
CORPORATE BONDS AND NOTES - 23.10%
AIR TRANSPORTATION - 1.67%
America West Airlines (6.850% due 07/02/09) $ 291,297 $ 291,055
Continental Airlines (8.560% due 07/02/14) 948,930 1,041,526
Midway Airlines (7.140% due 01/02/15) 500,000 503,395
------------
1,835,976
------------
BANKING & FINANCIAL SERVICE - 1.84%
AB Spintab (7.500% due 08/14/49) 1,000,000 1,017,225
Credit Suisse (7.900% due 05/01/07) 1,000,000 1,000,000
------------
2,017,225
------------
ELECTRIC - 1.65%
Niagra Mohawk Power (7.750% due 11/01/05) 1,500,000 1,808,828
------------
FOOD, BEVERAGE & TOBACCO - .91%
RJR Nabisco (8.250% due 07/01/04) 1,000,000 998,676
------------
INSURANCE - .91%
Fairfax Financial Holdings
(6.875% due 04/15/08) 1,000,000 996,100
------------
MANUFACTURING - 1.84%
Blount Inc. (7.000% due 06/15/05) 1,000,000 1,000,306
Federal-Mogul Co. (7.750% due 07/01/06) 500,000 1,022,124
------------
2,022,430
------------
METALS/MINING - .24%
Barrick Gold Corp. (7.500% due 05/01/07) 250,000 268,418
------------
OIL & GAS - 3.14%
Citgo Petroleum (7.875% due 05/15/06) 1,000,000 1,007,620
Gulf Canada Res. (8.350% due 08/01/06) 1,500,000 1,462,500
Union Pacific Resource Inc
(6.750% due 05/15/08) 1,000,000 970,191
------------
3,440,311
------------
REAL ESTATE - 2.17%
Camden Properties (7.000% due 11/15/06) 500,000 477,605
Colonial Properties (7.000% due 07/14/07) 1,000,000 957,091
Healthcare Properties Notes
(6.875% due 06/08/05) 1,000,000 941,875
------------
2,376,571
------------
SERVICE - .70%
Loewen Group International, Inc.
(8.250% due 04/15/03) 900,000 765,000
------------
SUPERMARKET - .94%
American Stores Company (6.500% due 03/20/08) 1,000,000 1,035,081
------------
TECHNOLOGY - .92%
Lexmark International (6.750% due 05/15/08) 1,000,000 1,014,324
------------
TELECOMMUNICATION - 2.96%
Comcast Cellular Holdings
(9.500% due 05/01/07) 1,000,000 1,060,000
Crown Castle Sr. Nt. (0.000% due 11/15/07) 1,500,000 1,050,000
Qwest Communications Nt. (0.000% due 02/01/08) 1,500,000 1,132,500
------------
3,242,500
------------
UTILITIES - 3.21%
Cal Energy (7.630% due 10/15/07) 1,000,000 1,068,741
Enersis (6.600% due 12/01/26) 1,500,000 1,397,114
NRG Energy (7.500% due 06/15/07) 1,000,000 1,053,458
------------
3,519,313
------------
Total Corporate Bonds (cost $ 25,803,780) 25,340,753
------------
SHORT-TERM INVESTMENTS - .35%
VARIABLE RATE DEMAND NOTES <F1> - .35%
Firstar Bank (5.378% due 12/31/31) 378,975 378,975
------------
Total Short Term Investments (cost $378,975) 378,975
------------
TOTAL INVESTMENTS - 100.12%
(cost $122,506,433)<F2> 109,810,560
------------
OTHER ASSETS AND LIABILITIES - (.12%) (132,478)
------------
TOTAL NET ASSETS - 100% $109,678,082
============
*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 shown is as of December 31, 1998
<F2> Cost for income tax purposes is $122,606,851, which is substantially the
same for financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of December 31, 1998 was $7,101,748 and
($19,898,039) respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
CARILLON FUND, INC.
SCHEDULE OF INVESTMENTS
BOND PORTFOLIO
DECEMBER 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 44.87%
U.S. TREASURY NOTES - 44.87%
6.000% due 10/15/99 $4,000,000 $ 4,041,252
0.000% due 02/15/00 3,250,000 3,088,082
6.750% due 04/30/00 2,000,000 2,052,500
7.750% due 02/15/01 5,000,000 5,307,815
0.000% due 08/15/02 2,000,000 1,690,878
5.875% due 11/15/05 5,000,000 5,334,375
5.625% due 02/15/06 5,000,000 5,273,440
7.000% due 07/15/06 5,000,000 5,693,750
6.250% due 02/15/07 5,000,000 5,484,375
6.625% due 05/15/07 5,000,000 5,623,440
5.500% due 02/15/08 2,000,000 2,120,000
5.625% due 05/15/08 5,000,000 5,334,375
------------
51,044,282
------------
Total U.S. Treasury Obligations
(cost $48,795,442) 51,044,282
------------
MORTGAGE - BACKED SECURITIES - 1.71%
FEDERAL HOME LOAN MORTGAGE CORPORATION - .64%
7.500% due 02/01/02 20,719 21,024
9.500% due 04/01/05 38,085 40,144
7.500% due 06/01/07 67,025 67,671
11.000% due 05/01/10 3,700 3,917
12.500% due 08/01/10 11,311 12,602
8.000% due 11/01/16 40,128 41,603
9.500% due 02/01/18 73,784 78,477
6.500% due 07/01/23 456,476 459,827
------------
725,265
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.01%
12.000% due 04/01/00 6,308 6,593
9.000% due 08/01/01 24,483 25,362
8.500% due 01/01/02 20,320 20,951
10.500% due 06/01/04 6,967 7,496
10.500% due 05/01/05 155,812 167,642
6.500% due 06/01/08 769,705 780,834
8.000% due 08/01/17 136,888 142,537
------------
1,151,415
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - .06%
9.000% due 05/15/20 61,379 65,853
------------
Total Mortgage-backed Securities
(cost $1,878,139) 1,942,533
------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 4.53%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.61%
59 E (8.900% due 11/15/20) $ 773,087 $ 798,572
106 G (8.250% due 12/15/20) 1,000,000 1,031,942
------------
1,830,514
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - .11%
1988-30 D (9.500% due 12/25/18) 113,909 119,780
PRIVATE SECTOR - 2.81%
Securitized Asset Sales, Inc. 1993-2 B2
(6.500% due 07/25/08) 259,836 257,885
CMC2 Securities Corp. 1993 E 1 E 1CP
(0.000% due 12/25/08) 274,771 230,294
Country Wide Mortgage-Backed Securities, Inc.
1994 - 8B1 (6.000% due 03/01/09) 770,541 750,900
Capstead Mortgage Securities Corp. C - 4
(10.950% due 02/01/14) 123,690 123,690
NSCOR 1996 - 5 B1 (8.000% due 11/25/26) 1,633,977 1,664,096
MSC 1998 - 1PO (0.000% due 03/25/28) 251,481 169,986
------------
3,196,851
------------
Total Collateralized Mortgage Obligations
(cost $4,943,062) 5,147,145
------------
ASSET - BACKED SECURITIES - 7.14%
COMMERCIAL MORTGAGE-BACKED SECURITIES- 5.48%
Chase Commercial Mortgage Sec.
(6.600% due 12/19/07) 2,609,885 2,311,392
MSC 1998 - WF1 (7.120% due 01/15/08) 2,000,000 1,976,260
Paine Webber Mortgage Acceptance 96 M1 E
(7.655% due 01/02/12) 2,000,000 1,939,380
------------
6,227,032
------------
HOME EQUITY - 1.66%
Ditech Home Loan Owner Trust
(7.250% due 06/15/21) 2,000,000 1,893,120
------------
Total Asset backed Securities
(cost $8,597,901) 8,120,152
------------
CORPORATE BONDS AND NOTES - 43.51%
AIR TRANSPORTATION - 1.79%
Continental Airlines (7.820% due 10/15/13) 954,115 987,041
NWA Trust No. 2 Class B
(10.230% due 06/21/14) 901,538 1,054,665
------------
2,041,706
------------
BANK, BANK HOLDING COMPANIES,
& OTHER BANK SERVICERS - 4.61%
Ahmanson Capital Trust (8.360% due 12/01/26) 1,500,000 1,672,643
Banc Tec Inc. (7.500% due 06/01/08) 1,500,000 1,479,126
NationsBank Corp. (7.625% due 04/15/05) 1,000,000 1,099,437
Svenska Handelsbanken (7.125% due 03/07/07) 1,000,000 998,943
------------
5,250,149
------------
ENERGY - 4.75%
All Star Gas Corp. (7.000% due 07/15/04) 1,000,000 780,000
Costilla Energy Sr. Notes
(10.250% due 10/01/06) 1,000,000 700,000
Eagle Geophysical Inc. (10.75 % due 07/15/08) 1,000,000 830,000
Louis Dreyfus Notes (6.875% due 12/01/07) 1,500,000 1,383,081
Mitchell Energy Development Corp.
(6.750% due 02/15/04) 1,750,000 1,707,263
------------
5,400,344
------------
ENTERTAINMENT & LEISURE - 2.21%
Imax Corp. Sr. Nt. (7.875% due 12/01/05) 1,000,000 1,010,000
Royal Caribbean (7.000% due 10/15/07) 1,500,000 1,501,284
------------
2,511,284
------------
FOOD, BEVERAGE, & TOBACCO - 2.57%
Fresh Food, Inc. (10.750% due 06/01/06) 1,000,000 940,000
Nabisco Inc. (7.550% due 06/15/15) 1,000,000 1,003,883
RJR Nabisco, Inc. (7.625% due 09/15/03) 1,000,000 976,798
------------
2,920,681
------------
GAMING INDUSTRY - 1.98%
Argosy Gaming (13.2500% due 06/01/04) 1,000,000 1,120,000
Casino Magic of Louisiana
(13.000% due 08/15/03) 1,000,000 1,130,000
------------
2,250,000
------------
HEALTH CARE - 3.06%
Rural/Metro Corp. Sr. Nt.
(7.875% due 03/15/08) 1,000,000 910,000
Tenet Healthcare Corp. (7.875% due 01/15/03) 1,000,000 1,025,641
Universal Health Services Sr. Notes
(8.750% due 08/15/05) 1,500,000 1,545,000
------------
3,480,641
------------
INSURANCE - 3.86%
Farmers Insurance Exchange
(8.500% due 08/01/04) 1,000,000 1,114,317
Leucadia National Corp. (8.250% due 06/15/05) 1,000,000 1,012,873
Prudential Ins. Surplus Notes
(8.100% due 07/15/15) 1,000,000 1,142,952
USF&G Capital (8.470% due 01/10/27) 1,000,000 1,121,819
------------
4,391,961
------------
MANUFACTURING - .90%
International Knife & Saw Corp.
(11.375% due 11/15/06) 1,000,000 1,025,000
------------
MEDIA & CABLE - 3.72%
CF Cable TV Inc. (9.125% due 07/15/07) 1,000,000 1,062,500
Continental Cablevision (8.300% due 05/15/06) 1,000,000 1,109,839
Spanish Broadcasting Systems
(11.000% due 03/15/04) 1,000,000 1,060,000
Tri-State Outdoor Media (11.000 due 05/15/08) 1,000,000 995,000
------------
4,227,339
------------
MEDIA CONGLOMERATE - 3.82%
News American Holdings (6.625% due 01/09/08) 1,500,000 1,543,373
Time Warner Inc. (8.110% due 08/15/06) 1,500,000 1,714,791
Viacom Inc. Sr. Notes (7.750% due 06/01/05) 1,000,000 1,091,918
------------
4,350,082
------------
PAPER & FOREST PRODUCT - .47%
Westvaco Corp. (10.300% due 01/15/19) 500,000 529,800
------------
REAL ESTATE - 2.58%
Colonial Properties Sr. Notes
(8.050% due 07/15/06) 1,500,000 1,525,640
Healthcare Properties Notes
(6.875% due 06/08/05) 1,500,000 1,412,812
------------
2,938,452
------------
TELECOMMUNICATIONS - 6.25%
360 Communications Sr. Notes
(7.500% due 03/01/06) 1,500,000 1,652,174
Arch Comm Group Sub Debentures
(6.750% due 12/01/2003) 1,000,000 545,000
Call-Net Enterprises (0.000% due 12/01/04) 1,250,000 1,212,500
Comcast Cellular Holdings
(9.500% due 05/01/07) 1,000,000 1,060,000
Talton Holdings Inc. Sr. Notes
(11.000% due 06/30/07) 1,000,000 950,000
Worldcom Inc. (7.750% due 04/01/07) 1,500,000 1,692,129
------------
7,111,803
------------
UTILITY - .94%
Cal Energy (7.630% due 10/15/07) 1,000,000 1,068,741
------------
Total Corporate Bond and Notes
(cost $48,837,051) 49,497,983
------------
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS - .66%
PACKAGING - .66%
Earthshell Container Corporation 63,360 756,360
------------
Total Common Stocks (cost $241,832) 756,360
------------
<caption<
PRINCIPAL VALUE
<S> <C> <C>
SHORT TERM INVESTMENTS - 8.30%
COMMERCIAL PAPER - 5.27%
Block Financial Corp. (5.400% due 01/04/99) $2,000,000 1,999,100
Duke Power Co. (5.550% due 01/04/99) 2,000,000 1,999,075
Koch Industries (5.130% due 01/04/99) 2,000,000 1,999,145
------------
5,997,320
------------
VARIABLE RATE DEMAND NOTES <F1> - 3.03%
Firstar Bank (5.378% due 12/31/31) 3,448,241 3,448,241
------------
Total Short-Term Investments (cost 9,445,561) 9,445,561
------------
TOTAL INVESTMENTS - 110.72%
(cost $122,738,988)<F2> 125,954,016
------------
OTHER ASSETS AND LIABILITIES - (10.72%) (12,191,705)
------------
TOTAL NET ASSETS - 100.00% $113,762,311
============
<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 shown is as of December 31, 1998.
<F2> Represents cost for income tax purposes which is substantially the same
for financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of December 31, 1998 was $5,213,614 and
($1,998,586) respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of the
financial statements.
<PAGE>
CARILLON FUND, INC.
SCHEDULE OF INVESTMENTS
S&P 500 INDEX PORTFOLIO
DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS - 96.56%
BANKING & FINANCIAL SERVICE - 15.29%
Aetna Life and Casualty Company 1,900 $ 149,388
Allstate (The) Corporation 10,700 413,288
American Express Company 5,900 603,275
American General Corporation 3,300 257,400
American International Group, Incorporated 13,550 1,309,269
Aon Corporation 2,200 121,825
Associates First Capital Corporation 9,000 381,375
Banc One Corporation 15,046 768,286
Bank of New York Company, Incorporated 9,600 386,400
BankAmerica Corporation 22,352 1,343,914
Bankboston Corporation 3,800 147,963
Bankers Trust Corporation 1,200 102,525
BB&T Corporation* 3,700 149,156
Capital One Financial Corporation 900 103,500
Charles Schwab Corporation 5,100 286,556
Chase Manhattan Corporation 11,000 748,688
Chubb Corporation 2,100 136,238
CIGNA Corporation 2,700 208,744
Cincinnati Financial Corporation 2,200 80,575
Citigroup, Incorporated 29,400 1,455,300
Comerica, Incorporated 2,000 136,375
Conseco, Incorporated 4,000 122,250
Countrywide Credit Industries, Incorporated 1,400 70,263
Fannie Mae 13,400 991,600
Federal Home Loan Mortgage Corporation 8,700 560,606
Fifth Third Bancorp 3,400 242,463
First Union Corporation 12,500 760,156
Firstar Bank NA 3,035 282,255
Fleet Financial Group, Incorporated 7,300 326,219
Franklin Resources, Incorporated 3,300 105,600
Golden West Financial 700 64,181
Hartford Financial Services Group 3,000 164,625
Household International, Incorporated 6,300 249,638
Huntington Bancshares 2,720 81,770
Jefferson-Pilot Corporation 1,400 105,000
KeyCorp 5,700 182,400
Lehman Brothers Holdings 1,500 66,094
Lincoln National Corporation 1,300 106,356
Loews Corporation 1,500 147,375
Marsh & McLennan Companies, Incorporated 3,300 192,844
MBIA, Incorporated 1,300 85,231
MBNA Corporation 9,700 241,894
Mellon Bank Corporation 3,400 233,750
Mercantile Bancorporation 2,000 92,250
Merrill Lynch & Company 4,500 300,375
MGIC Investment Corporation 1,500 59,719
Morgan (J. P.) & Company 2,300 241,644
Morgan Stanley, Dean Witter & Company 7,500 532,500
National City Corporation 4,200 304,500
Northern Trust Corporation 1,400 122,238
PNC Bank Corporation 3,900 211,088
Progressive Corporation 900 152,438
Providian Financial Corporation 1,800 135,000
Regions Financial Corporation 2,800 112,875
Republic New York Corporation 1,400 63,788
SAFECO Corporation 1,800 77,288
SLM Holding Corporation 2,200 105,600
State Street Corporation 2,100 146,081
St. Paul Companies 3,000 104,250
Summit Bancorp 2,200 96,113
SunAmerica, Incorporated 2,700 219,038
SunTrust Banks, Incorporated 2,700 206,550
Synovus Financial Corporation 3,400 82,875
Torchmark Corporation 1,800 63,563
Transamerica Corporation 800 92,400
Union Planters Corporation 1,600 72,500
UNUM Corporation 1,800 105,074
U.S. Bancorp 9,600 340,800
Wachovia Corporation 2,700 236,081
Waddell & Reed Financial, Incorporated 96 2,272
Waddell & Reed Financial-Cl B* 416 9,672
Washingon Mutual, Incorporated 7,684 293,432
Wells Fargo & Company 20,800 830,700
------------
20,085,314
------------
CAPITAL GOODS - 6.78%
AlliedSignal, Incorporated 7,200 319,050
AMP, Incorporated 2,768 144,109
Avery Dennison Company 1,500 67,594
Boeing Company 13,000 424,125
Briggs & Stratton Corporation 300 14,963
Browning-Ferris Industries 2,200 62,563
Case Equipment 1,000 21,813
Caterpillar, Incorporated 4,700 216,200
Cincinnati Milacron, Incorporated 500 9,625
Cooper Industries, Incorporated 1,500 71,531
Deere & Company 3,200 106,000
Dover Corporation 2,900 106,213
EG& G, Incorporated 600 16,688
Emerson Electric Company 5,700 344,850
Fluor Corporation 1,000 42,563
Foster Wheeler Corporation 500 6,594
General Dynamics Corporation 1,600 93,800
General Electric Company 41,900 4,276,419
Grainger (W.W.), Incorporated 1,300 54,113
Honeywell, Incorporated 1,600 120,500
Illinois Tool Works, Incorporated 3,200 185,600
Ingersoll-Rand Company 2,100 98,569
Johnson Controls, Incorporated 1,100 64,900
Lockheed Martin Corporation 2,500 211,875
Minnesota Mining & Manufacturing Company 5,200 369,850
NACCO Industries-Class A 100 9,200
Northrop Grumman Corporation 900 65,813
Pall Corporation 1,600 40,500
PACCAR, Incorporated 1,000 41,125
Parker-Hannifin Corporation 1,400 45,850
Perkin-Elmer Corporation 600 58,538
Raychem Corporation 1,100 35,544
Sealed Air Corporation* 1,100 56,169
Tektronix, Incorporated 600 18,038
Tenneco, Incorporated 2,200 74,938
Thermo Electron Corporation* 2,100 35,569
Thomas & Betts Corporation 700 30,319
Tyco International Limited 8,284 624,924
United Technologies Corporation 2,900 315,375
------------
8,902,009
------------
CONSUMER CYCLICAL - 8.10%
American Greetings Company Class A 900 36,955
AutoZone, Incorporated* 2,000 65,875
Black & Decker Corporation 1,200 67,275
Brunswick Corporation 1,300 32,175
Carnival Corporation 7,900 379,200
Consolidated Stores Corporation* 1,400 28,263
Costco Companies, Incorporated* 2,800 202,123
Dana Corporation 2,149 87,840
Dayton Hudson Corporation 5,700 309,225
Dillard, Incorporated Class A 1,400 39,725
Dow Jones & Company 1,200 57,750
Eaton Corporation 900 63,617
Federated Department Stores* 3,700 117,618
Ford Motor Company 15,600 915,525
Gannett Company, Incorporated 3,700 238,650
Gap, Incorporated 7,650 430,313
General Motors Corporation 8,400 601,125
Genuine Parts Company 2,300 76,905
Goodyear Tire & Rubber 2,000 100,875
Harcourt General, Incorporated 900 47,867
Harrah's Entertainment, Incorporated* 1,300 20,394
Hasbro, Incorporated 1,700 61,413
Hilton Hotels Corporation 3,400 65,025
Home Depot, Incorporated 18,900 1,156,444
ITT Industries, Incorporated 1,500 59,625
Jostens, Incorporated 500 13,092
K Mart Corporation* 6,300 96,469
Knight-Ridder, Incorporated 1,000 51,125
Kohl's Corporation* 2,000 122,875
Liz Claiborne, Incorporated 900 28,406
Lowe's Companies, Incorporated 4,500 230,344
Marriott International Class A 3,200 92,800
Masco Company 4,400 126,500
Mattel, Incorporated 3,800 86,687
May Department Stores Company 3,000 181,125
McGraw-Hill Companies, Incorporated 1,300 132,437
Meyer (Fred), Incorporated* 2,000 120,500
Mirage Resorts, Incorporated* 2,300 34,354
New York Times Class A 2,400 83,250
NIKE, Incorporated Class B 3,700 150,081
Nordstrom, Incorporated 1,900 65,906
Owens Corning Corporation 700 24,806
Penney, (J.C.) Company, Incorporated 3,300 154,687
Reebok International Limited* 700 10,413
Russell Corporation 500 10,155
Sears Roebuck & Company 5,100 216,750
Sherwin-Williams Company 2,200 64,625
Snap-On Tools, Incorporated 800 27,850
Springs Industries, Incorporated 200 8,287
Stanley (The) Works 1,100 30,525
Staples, Incorporated* 3,700 161,644
Tandy Corporation 1,300 53,542
Limited (The), Incorporated 2,900 84,463
Times Mirror Company 1,100 61,600
TJX Cos, Incorporated 4,100 118,900
Toys "R" Us, Incorporated* 3,400 57,375
Tribune Company 1,600 105,600
TRW, Incorporated 1,600 89,900
Wal-Mart Stores, Incorporated 28,800 2,345,400
Whirlpool Corporation 1,000 55,375
V.F. Corporation 1,600 75,000
------------
10,634,650
------------
CONSUMER NON-DURABLE - 25.06%
Abbott Laboratories 19,800 970,200
Albertson's, Incorporated 3,200 203,800
Allergan, Incorporated 800 51,800
American Home Products Corporation 16,900 951,680
American Stores Company 3,500 129,280
Anheuser-Busch Companies, Incorporated 6,200 406,874
Archer-Daniels-Midland Company 7,725 132,773
Avon Products, Incorporated 3,400 150,450
Bausch & Lomb, Incorporated 700 42,000
Baxter International, Incorporated 3,700 237,956
Becton, Dickinson Company 3,200 136,600
BestFoods, Incorporated 3,700 197,025
Boston Scientific Corporation* 5,000 134,062
Bristol-Meyers Squibb Company 12,800 1,712,800
Campbell Soup Company 5,800 319,000
Cardinal Health, Incorporated 2,600 197,275
CBS, Corporation 9,200 301,300
Clear Channel Communications* 3,200 174,400
Clorox Company 1,300 151,855
Coca-Cola Company 31,800 2,126,625
Coca-Cola Enterprises 5,200 185,900
Colgate-Palmolive Company 3,800 352,925
Columbia/HCA Healthcare Corporation 8,300 205,425
Comcast Corporation Class A Special 4,800 281,700
ConAgra, Incorporated 6,300 198,450
CVS Corporation 5,000 275,000
Deluxe Corporation 1,000 36,561
Donnelly (RR) & Sons Company 1,800 78,862
Fortune Brands, Incorporated 2,200 69,575
General Mills, Incorporated 2,000 155,500
Gillette Company 14,500 700,531
Great Atlantic & Pacific Tea
Company, Incorporated 500 14,813
Guidant Corporation 1,900 209,475
HCR Manor Care, Incorporated* 1,400 41,125
Heinz (H.J.) Company 4,700 266,135
Healthsouth Corporation* 5,400 83,363
Hershey Foods Corporation 1,800 111,936
Humana, Incorporated* 2,100 37,406
Johnson & Johnson Company 17,300 1,451,037
Kellogg Company 5,200 177,450
King World Productions, Incorporated 900 26,492
Kroger Company* 3,300 199,650
Lilly,(Eli) & Company 14,200 1,262,025
Mallincrokdt, Incorporated 900 27,731
McDonald's Corporation 8,800 674,300
Medtronic, Incorporated 6,000 445,500
Merck & Company, Incorporated 15,300 2,259,617
Newell Company 2,100 86,625
PepsiCo, Incorporated 19,000 777,813
Pfizer, Incorporated 16,800 2,107,350
Pharmacia & Upjohn, Incorporated 6,500 368,063
Philip Morris Companies, Incorporated 31,300 1,674,550
Pioneer Hi-Bred International 3,100 83,700
Procter & Gamble Company 17,300 1,579,706
Quaker Oats 1,800 107,100
RJR Nabisco Holdings Corporation 4,150 123,203
Ralston-Ralston Purina Group 4,000 129,500
Rite Aid Corporation 3,300 163,556
Rubbermaid, Incorporated 1,900 59,731
Safeway, Incorporated* 6,300 383,906
Sara Lee Corporation 12,000 338,250
Schering-Plough Corporation 19,000 1,049,750
Seagram Company, Limited 4,500 171,000
Supervalu, Incorporated 1,600 44,800
St. Jude Medical* 1,100 30,456
Sysco Corporation 4,300 117,981
Tele-Communications, Incorporated* 6,700 370,594
Tenet Healthcare Corporation* 4,000 105,000
Time Warner, Incorporated 15,400 955,763
TRICON Global Restaurants* 2,000 100,250
Unilever N.V. ADR 8,200 680,088
United HealthCare Corporation 2,500 107,656
UST, Incorporated 2,400 83,700
Viacom, Incorporated - Class B* 4,600 340,400
Walgreen Company 6,400 374,800
Walt Disney Company, The 26,400 792,000
Warner-Lambert Company 10,600 796,988
Wendy's International 1,600 34,900
Winn-Dixie Stores, Incorporated 1,900 85,260
Wrigley, (Wm), Jr. Company 1,500 134,345
------------
32,915,023
------------
ENERGY - 5.47%
Amerada Hess Corporation 1,200 59,700
Anadarko Petroleum Corporation 1,500 46,313
Ashland, Incorporated 1,100 48,375
Atlantic Richfield Company 4,100 267,525
Baker Hughes, Incorporated 4,090 72,342
Burlington Resources, Incorporated 2,300 82,369
Chevron Corporation 8,400 696,675
Exxon Corporation 31,400 2,296,125
Halliburton Company 5,700 168,863
Kerr-McGee Company 600 22,950
Mobil Corporation 10,100 879,963
Occidental Petroleum 4,500 75,938
Oryx Energy* 1,400 18,813
PennzEnergy Company 600 9,788
Pennzoil-Quaker State Company* 600 8,888
Phillips Petroleum Company 3,300 140,663
Royal Dutch Petroleum ADR 27,600 1,321,350
Schlumberger Limited 7,000 322,875
Sunoco, Incorporated 1,200 43,275
Texaco, Incorporated 6,900 364,838
Union Pacific Resources Group 3,200 29,000
Unocal Corporation 3,100 90,481
USX-Marathon 4,000 120,500
------------
7,187,609
------------
MANUFACTURING - 3.73%
Air Products & Chemicals, Incorporated 3,000 120,000
Alcan Aluminum Limited 2,900 78,481
Allegheny Teledyne, Incorporated 2,500 51,094
Aluminum Company of America 2,400 178,950
Applied Materials, Incorporated* 4,700 200,631
Armco, Incorporated* 1,400 6,125
ASARCO, Incorporated 500 7,531
Ball Corporation 400 18,300
Barrick Gold Corporation 4,800 93,600
Bemis Company 700 26,556
Bethlehem Steel Corporation* 1,700 14,238
Centex Corporation 800 36,050
Champion International Corporation 1,200 48,600
Corning, Incorporated 3,000 135,000
Crown Cork & Seal Company, Incorporated 1,600 49,300
Dow Chemical Company 2,900 263,719
DuPont (E.I.) De Nemours & Company 14,600 774,713
Eastman Chemical Company 1,000 44,750
Englehard Corporation 1,900 37,050
FMC Corporation* 400 22,400
Fort James Corporation 2,800 112,000
Freeport-McMoRan Copper & Gold 2,300 24,006
Georgia-Pacific Company 1,200 70,275
Grace, (W.R.) & Company* 1,000 15,688
Great Lakes Chemical Corporation 800 32,000
Hercules, Incorporated 1,200 32,850
Inco, Limited 2,100 22,181
International Flavors & Fragrance,
Incorporated 1,400 61,863
International Paper Company 4,000 179,250
Kaufman & Broad Home Corporation 500 14,375
Kimberly-Clark Corporation 7,000 381,500
Louisiana Pacific Corporation 1,400 25,638
Mead Corporation 1,300 38,106
Monsanto Company 7,700 365,750
Morton International, Incorporated 1,700 41,650
Nalco Chemical Company 800 24,800
National Service Industries 500 19,000
Newmont Mining Corporation 2,200 39,738
Nucor Corporation 1,100 47,575
Owens-Illinois, Incorporated* 2,000 61,250
Phelps Dodge Corporation 800 40,700
Pitney-Bowes, Incorporated 3,500 231,219
Placer Dome, Incorporated 3,200 36,800
PPG Industries, Incorporated 2,300 133,975
Praxair, Incorporated 2,000 70,500
Pulte Corporation 600 16,688
Reynolds Metals Company 900 47,419
Rohm & Haas Company 2,300 69,288
Sigma-Aldrich Corporation 1,300 38,188
Temple-Inland 700 41,519
Union Camp Corporation 900 60,750
Union Carbide Corporation 1,700 72,250
USX-U.S. Steel Group 1,100 25,300
Weyerhaeuser Company 2,600 132,113
Willamette Industries 1,400 46,900
Worthington Industries, Incorporated 1,200 15,000
------------
4,895,192
------------
SERVICE - 1.73%
Automatic Data Processing, Incorporated 3,900 312,731
Block (H&R), Incorporated 1,300 58,500
Cendant Corporation* 11,000 209,688
Dun & Bradstreet Corporation 2,200 69,438
Electronic Data Systems Corporation 6,354 319,289
Equifax, Incorporated 1,900 64,956
First Data Corporation 5,800 183,788
IMS Health, Incorporated 2,100 158,417
Interpublic Group Companies, Incorporated 1,800 143,550
Laidlaw, Incorporated 4,200 42,263
Omnicom Group 2,200 127,600
Paychex, Incorporated 2,100 108,019
Service Corporation International 3,300 125,606
Waste Management, Incorporated 7,370 343,626
------------
2,267,471
------------
TECHNOLOGY - 18.16%
3COM Corporation* 4,600 206,138
Adobe Systems, Incorporated 900 42,075
Advanced Micro Devices, Incorporated* 1,900 54,981
American Online 6,000 960,000
Amgen, Incorporated* 3,300 345,056
Andrew Corporation* 1,100 18,150
Apple Computer, Incorporated* 1,700 69,594
Ascend Communications, Incorporated* 2,800 184,100
BMC Software, Incorporated* 2,700 120,319
Cabletron Systems, Incorporated* 2,100 17,588
Cisco Systems, Incorporated* 20,050 1,860,891
COMPAQ Computers Corporation 21,500 901,656
Computer Associates International,
Incorporated 7,200 306,900
Computer Sciences Corporation* 2,000 128,875
Compuware, Incorporated 2,400 187,500
Data General Corporation* 600 9,863
Dell Computer Corporation* 16,300 1,192,956
Eastman Kodak Company 4,200 302,400
EMC Corporation Massachusetts* 6,400 544,000
Gateway 2000, Incorporated* 2,000 102,375
General Instrument Corporation* 1,900 64,481
HBO & Company 5,600 160,650
Hewlett-Packard Company 13,400 915,388
IKON Office Solution 1,700 14,556
Intel Corporation 21,600 2,560,950
International Business Machines Corporation 12,000 2,217,000
LSI Logic Corporation* 1,800 29,025
Lucent Technologies 16,900 1,859,000
Micron Technology, Incorporated* 2,700 136,519
Microsoft Corporation* 31,700 4,396,394
Motorola, Incorporated 7,700 470,181
National Semiconductor* 2,100 28,350
Nothern Telecom, Limited 8,420 422,053
Novell, Incorporated* 4,600 83,375
Oracle Systems Corporation* 12,500 539,063
Parametric Technology Company* 3,500 56,875
PeopleSoft, Incorporated* 3,000 56,813
Raytheon Company - Class B 4,400 234,300
Rockwell International Corporation 2,500 121,406
Seagate Technology, Incorporated* 3,100 93,775
Scientific-Atlanta, Incorporated 1,000 22,813
Silicon Graphics, Incorporated* 2,400 30,900
Sun Microsystems, Incorporated* 4,900 419,563
Tellabs, Incorporated* 2,500 171,406
Texas Instruments, Incorporated 5,000 427,813
Textron, Incorporated 2,100 159,469
Unisys Corporation* 3,300 113,644
Xerox Corporation 4,200 495,600
------------
23,856,779
------------
TRANSPORTATION - .92%
AMR Corporation* 2,300 136,563
Burlington Northern Santa Fe Corporation 6,100 205,875
CSX Corporation 2,800 116,200
Delta Air Lines 2,000 104,000
FDX Corporation* 1,900 169,100
Norfolk Southern Company 4,900 155,269
Ryder System 900 23,400
Southwest Airlines Company 4,300 96,481
Union Pacific Corporation 3,200 144,200
US Airways Group, Incorporated* 1,200 62,400
------------
1,213,488
------------
UTILITIES - 11.32%
AES Corporation* 2,300 108,963
AirTouch Communications* 7,400 533,725
Alcatel 1,141 27,883
ALLTELL Corporation 3,500 209,344
Ameren Corporation 1,800 76,838
AT & T Corporation 23,300 1,753,325
American Electric Power Company 2,500 117,656
Ameritech Corporation 14,200 899,925
Baltimore Gas & Electric Company 1,900 58,663
Bell Atlantic Corporation 20,000 1,060,000
BellSouth Corporation 25,400 1,266,825
Carolina Power & Light Company 1,900 89,419
Central & SouthWest Corporation 2,700 74,081
CINergy Corporation 2,000 68,750
Coastal Corporation 2,700 94,331
Columbia Energy Group 1,100 63,525
Consolidated Edison, Incorporated 3,000 158,625
Consolidated Natural Gas Company 1,200 64,800
Dominion Resources 2,500 116,875
Duke Energy 4,700 301,094
DTE Energy Company 1,900 81,463
Eastern Enterprises 300 13,125
Edison International 4,600 128,225
Enron Corporation 4,200 239,663
Entergy Corporation 3,200 99,600
FirstEnergy Corporation 3,100 100,944
Frontier Corporation 2,200 74,800
FPL Group, Incorporated 2,300 141,738
GPU, Incorporated 1,600 70,700
GTE Corporation 12,400 806,000
Houston Industries, Incorporated 3,800 122,075
MCI WorldCom, Incorporated* 22,873 1,641,138
Mediaone Group* 7,800 366,600
Nextel Communications, Incorporated* 3,700 87,413
Niagara Mohawk Power Corporation* 2,400 38,700
Northern States Power Company 1,900 52,725
ONEOK, Incorporated 400 14,450
PacifiCorp 3,800 80,038
PECO Energy Company 2,900 120,713
PG & E Corporation 4,900 154,350
PP & L Resources, Incorporated 1,900 52,963
Public Service Enterprises Group, Incorporated 3,000 120,000
SBC Communications, Incorporated 25,200 1,351,350
Sempra Energy 3,100 78,663
Sonat, Incorporated 1,400 37,888
Southern Company 9,000 261,563
Sprint Corporation FON Group 5,500 462,688
Sprint PCS Group, Incorporated 2,750 63,594
Texas Utilities Holdings Cos. 3,600 168,075
Unicom Corporation 2,800 107,975
US West Communications Group 6,500 420,063
Williams Cos. 5,500 171,531
------------
14,875,460
------------
Total Common Stocks (cost $94,051,110) 126,832,995
------------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
SHORT-TERM INVESTMENTS<F2> - 4.34%
U.S. Treasury Bill (0.000% due 04/08/99) $5,199,597 5,199,597
Firstar U.S. Federal Money Market Fund 497,693 497,693
------------
Total Short-Term Investments (cost $5,697,290) 5,697,290
------------
TOTAL INVESTMENTS - 100.90%
(cost $99,748,400)<F1> 132,530,285
------------
OTHER ASSETS AND LIABILITIES -(.90%) (1,185,500)
------------
TOTAL NET ASSETS - 100% $131,344,785
============
- ---------------
*Non-income producing
<FN>
<F1> Represents cost for income tax purposes which is substantially the same
for financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of December 31, 1998 was $36,612,438 and
($3,830,553) respectively.
<F2> Securities with an aggregate market value of $5,293,375 have been
segregated with the custodian to cover margin requirements for the following
open futures contracts at December 31, 1998:
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
<S> <C> <C>
Standard & Poor's 500 Index (03/99) 1 $ 10,250
Standard & Poor's 500 Index (03/99) 1 10,125
Standard & Poor's 500 Index (03/99) 1 10,925
Standard & Poor's 500 Index (03/99) 1 18,875
Standard & Poor's 500 Index (03/99) 1 13,450
Standard & Poor's 500 Index (03/99) 1 12,375
Standard & Poor's 500 Index (03/99) 1 14,125
Standard & Poor's 500 Index (03/99) 1 12,250
Standard & Poor's 500 Index (03/99) 1 17,325
Standard & Poor's 500 Index (03/99) 2 27,950
Standard & Poor's 500 Index (03/99) 1 7,900
Standard & Poor's 500 Index (03/99) 1 3,500
Standard & Poor's 500 Index (03/99) 1 1,500
Standard & Poor's 500 Index (03/99) 1 1,175
Standard & Poor's 500 Index (03/99) 1 (1,500)
Standard & Poor's 500 Index (03/99) 1 1,125
--------
$161,350
========
</FN>
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
CARILLON FUND, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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 (individually
"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 the
Micro-Cap Portfolio 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 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 the intent of each Portfolio 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. The Capital Portfolio and the Bond Portfolio have a
capital loss carry forward of $2,649,227 and $404,220 which can
be carried forward until 2006.
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.
Foreign Currency-The Funds' accounting records are maintained in
U.S. dollars. All Portfolios may purchase foreign securities
within certain limitations set forth in the Prospectus. Amounts
denominated in or expected to settle in foreign currencies are
translated into U.S. dollars at the spot rate at the close of
the London Market. The Fund does not isolate that portions 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 - 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 the 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 AND FORWARD CURRENCY 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.
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 counterparties
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
Purchases and sales of securities for the year ended
December 31, 1998 excluding short-term obligations, follow:
<TABLE>
<CAPTION>
Equity Capital Bond S&P 500 Index
Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C>
Total Cost
of Purchases of:
Common Stocks $176,565,997 $95,496,275 $ 500,000 $57,204,221
U.S. Government Securities --- 66,200,913 38,169,352 ---
Corporate Bonds --- 52,847,328 57,048,754 ---
------------ ------------ ----------- ----------
$176,565,997 $214,544,516 $95,718,106 $57,204,221
------------ ------------ ----------- ----------
Total Proceeds
from Sales of:
Common Stocks $157,825,885 $ 64,391,326 $ 1,897,784 $ 2,300,118
U.S. Government Securities --- 94,201,280 19,232,107 ---
Corporate Bonds --- 38,998,914 52,432,185 ---
------------ ------------ ----------- -----------
$157,825,885 $197,591,520 $73,562,076 $ 2,300,118
============ ============ =========== ===========
</TABLE>
Note 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding throughout the
year.
<TABLE>
<caption
Equity Portfolio
Year Ended December 31,
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of year $ 20.35 $ 19.45 $ 16.54 $ 14.30 $ 14.58
------- ------- ------- ------- -------
Investment Activities:
Net investment income .25 .23 .29 .24 .20
Net realized
and unrealized
gains/(losses) (2.80) 3.23 3.61 3.36 .31
------- ------- ------- ------- -------
Total from
Investment Activities (2.55) 3.46 3.90 3.60 .51
------- ------- ------- ------- -------
Distributions:
Net investment income (.23) (.27) (.27) (.23) (.19)
Net realized gains (2.68) (2.29) (.72) (1.13) (.60)
------- ------- ------- ------- -------
Total Distributions (2.91) (2.56) (.99) (1.36) (.79)
------- ------- ------- ------- -------
Net Asset Value,
End of year $14.89 $20.35 $19.45 $16.54 $14.30
======= ======= ======= ======= =======
Total Return (15.31%) 20.56% 24.52% 26.96% 3.42%
Ratios/Supplemental Data:
Ratio of Expenses to
Average Net Assets .62% .62% .64% .66% .69%
Ratio of Net Investment
Income to Average
Net Assets 1.41% 1.23% 1.66% 1.73% 1.45%
Portfolio Turnover Rate 62.50% 57.03% 52.53% 34.33% 40.33%
Net Assets, End of Year
(000's) $248,783 $335,627 $288,124 $219,563 $157,696
</TABLE>
<PAGE>
Note 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding
throughout the year.
<TABLE>
<CAPTION>
Capital Portfolio
Year Ended December 31,
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of year $ 14.10 $ 14.95 $ 13.72 $ 13.19 $ 13.81
------- ------- ------- ------- -------
Investment Activities:
Net investment income .41 .62 .63 .64 .52
Net realized
and unrealized
gains/(losses) (2.14) .37 1.36 1.15 (.39)
------- ------- ------- ------- -------
Total from
Investment Activities (1.73) .99 1.99 1.79 .13
------- ------- ------- ------- -------
Distributions:
Net investment income (.45) (.66) (.57) (.64) (.52)
Net realized gains (.72) (1.18) (.19) (.62) (.23)
------- ------- ------- ------- -------
Total Distributions (1.17) (1.84) (.76) (1.26) (.75)
------- ------- ------- ------- -------
Net Asset Value,
End of year $ 11.20 $ 14.10 $ 14.95 $ 13.72 $ 13.19
======= ======= ======= ======= =======
Total Return (13.25%) 7.40% 14.94% 14.28% .94%
Ratios/Supplemental Data:
Ratio of Expenses to
Average Net Assets .79% .77% .77% .77% .80%
Ratio of Net Investment
Income to Average
Net Assets 3.27% 4.22% 4.42% 4.99% 4.25%
Portfolio Turnover Rate 165.00% 60.84% 53.11% 43.83% 41.89%
Net Assets,
End of Year (000's) $109,678 $148,830 $159,294 $145,623 $119,263
</TABLE>
<PAGE>Note 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding
throughout the year.
<TABLE>
<CAPTION>
Bond Portfolio
Year Ended December 31,
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of year $ 11.29 $ 10.91 $ 11.07 $ 10.04 $ 11.30
------- ------- ------- ------- -------
Investment Activities:
Net investment income .77 .79 .79 .88 .7
Net realized and
unrealized gains/
(losses) (.05) .37 (.04) .98 (.95)
------- ------- ------- ------- -------
Total from
Investment Activities .72 1.16 .75 1.86 (.18)
------- ------- ------- ------- -------
Distributions:
Net investment income (.76) (.72) (.87) (.83) (.78)
In excess of net
investment income ---- ---- (.04) ---- ----
Net realized gains (.12) (.06) ---- ---- (.30)
------- ------- ------- ------- -------
Total Distributions (.88) (.78) (.91) (.83) (1.08)
------- ------- ------- ------- -------
Net Asset Value,
End of year $ 11.13 $ 11.29 $ 10.91 $ 11.07 $ 10.04
======= ======= ======= ======= =======
Total Return 6.52% 11.02% 7.19% 19.03% (1.63%)
Ratios/Supplemental Data:
Ratio of Expenses to
Average Net Assets .58% .60% .62% .65% .68%
Ratio of Net Investment
Income to Average
Net Assets 6.84% 7.15% 7.24% 7.43% 7.21%
Portfolio Turnover Rate 67.57% 113.41% 202.44% 111.01% 70.27%
Net Assets,
End of Year (000's) $113,762 $ 99,892 $ 85,634 $ 73,568 $55,929
</TABLE>
<PAGE>
Note 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding
throughout the year.
<TABLE>
<CAPTION>
S&P 500 INDEX PORTFOLIO
Year Ended December 31,
1998 1997 1996<F1>
------- ------- -------
<S> <C> <C> <C>
Net Asset Value,
Beginning of year $ 15.74 $ 12.13 $ 10.00
------- ------- -------
Investment Activities:
Net investment income .20 .20 .20
Net realized and unrealized
gains /(losses) 4.21 3.72 2.12
------- ------- -------
Total from Investment Activities 4.41 3.92 2.32
------- ------- -------
Distributions:
Net investment income (.20) (.21) (.19)
Net realized gains (.46) (.10) ---
------- ------- -------
Total Distributions (.66) (.31) (.19)
------- ------- -------
Net Asset Value,
End of year $ 19.49 $ 15.74 $ 12.13
------- ------- -------
Total Return 28.54% 32.72% 23.37%
Ratios / Supplemental Data:
Ratio of Net Expenses to
Average Net Assets .43% .50% .59%<F2>
Ratio of Net Investment
Income to Average Net Assets 1.25% 1.48% 2.14%<F2>
Portfolio Turnover Rate 2.64% 9.06% 1.09%
Net Assets, End of Year (000's) $131,345 $ 55,595 $ 29,205
<FN>
<F1> The portfolio commenced operation on December 29, 1995. The financial
highlights table for the period ending December 31, 1995 is not presented
because the activity for the period did not round to $0.01 in any category of
the reconciliation of beginning to ending net asset value per share. The
ratios and total return were all less than 0.1%. The net assets at December
31, 1995 were $305,148.
<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 six months ended December 31, 1996, had the Adviser not waived a
portion of its fee.
</FN>
</TABLE>
<PAGE>
CARILLON FUND, INC.
Report of Independent Auditor
To the Board of Directors and Shareholders
of Carillon Fund, Inc.
We have audited the accompanying statements of assets and
liabilities, including the schedules of investments, of Carillon
Fund, Inc. (the "Fund") consisting of the Equity Portfolio,
Capital Portfolio, Bond Portfolio and the S&P Index Portfolio,
as of December 31, 1998, and the related statements of
operations and the statements of changes in net assets for the
periods presented, and the financial highlights for each of the
four years in the period ended December 31, 1998. These
financial statements and financial highlights ("financial
statements") are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial
statements based on our audits. The financial highlights for the
year ended December 31, 1994 were audited by other auditors
whose report, dated February 6, 1995, expressed an unqualified
opinion on those statements.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosure in the financial statements. Our
procedures included confirmation of securities owned as of
December 31, 1998, by correspondence with the Fund's custodian
and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements present fairly, in all
material respects, the financial position of the Fund as of
December 31, 1998, the results of its operations, and the
changes in its net assets and the financial highlights for the
respective stated periods in conformity with generally accepted
accounting principles.
Deloitte & Touche LLP
Dayton, Ohio
February 5, 1999
<PAGE>
Carillon Fund, Inc.
MICRO-CAP PORTFOLIO
Nineteen ninety-eight proved to be a year of greater-than-normal
divergent performances among various types of stocks, sizes of
stocks, industry groups, and geographic areas. Growth stocks
performed better than value stocks, large stocks did much better
than smaller stocks, technology and service industries
outperformed manufacturing and energy, and the U.S. and Europe
fared better than Latin America and Asia. Because of these
dichotomies in performance, just owning a stock mutual fund gave
an investor little indication about what results they
experienced in 1998. It was a very frustrating year for
professional mutual fund managers, as more than 85% of equity
mutual funds lagged the performance of the benchmark S&P 500
Index and 66% of all common stocks in the U.S. equity universe
posted a negative return for the period.
The largest divergence in performance occurred between large
capitalization and small capitalization stocks. Never before
has the Russell 2000 Index underperformed the S&P 500 by 30% in
one year. Never before has the Russell 2000 underperformed the
S&P 500 for five consecutive years. Never before have small cap
stocks sold at such low valuation levels relative to their
larger brethren. This confluence of events tend to bolster our
belief that small cap stocks are poised for a meaningful period
of outperformance.
The Carillon Micro-Cap Portfolio posted a negative total return
for the year as did all small capitalization indexes. The
Portfolio's position in energy-related issues held back
performance versus its benchmark as oil and natural gas prices
languished due to sluggish global demand and warmer weather,
respectively. Good performance was posted by technology issues
including Xircom, Innotrac, and Boston Acoustics.
We believe that 1999 will be a more favorable year for active
stock selection strategies. As expectations for overall
corporate profitability continue to be revised downward,
individual security selection becomes increasingly important.
In the coming year our focus will be on companies with
accelerating earnings growth, solid market positions, and clean
balance sheets. As always, we will also pay strong
consideration to valuation levels in our search for good
companies at compelling prices.
Comparison of Change in Value of $10,000 Investment
(The line graph shown here compares Carillon Micro-Cap Portfolio
with Russell 2000 for the period November 24, 1997 through
December 31, 1998. The following table appears at the upper
left of the graph.)
<TABLE>
<CAPTION>
1 Year Inception
<C> <C>
- -14.1% -13.5%
</TABLE>
Past performance is not predictive of future results.
<PAGE>
CARILLON FUND, INC.
MICRO-CAP PORTFOLIO
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities, at value $2,686,368
(cost $2,783,700)
Interest and dividends receivable 2,293
Prepaid expenses and other 173
----------
2,688,834
----------
LIABILITIES
Payables:
Investment securities purchased 72,328
Professional fees 9,123
Custodial and portfolio accounting fees 4,634
Investment advisory fees 7,291
Other accrued expenses 618
----------
93,994
----------
NET ASSETS
Paid-in capital 2,965,352
Accumulated net realized gain/(loss) (273,180)
of investments
Net unrealized/(depreciation) appreciation
of investments (97,332)
----------
$2,594,840
==========
Shares authorized ($.10) par value 20,000,000
Shares outstanding 300,000
Net asset value, offering and
redemption price per share $8.65
==========
</TABLE>
The accompanying notes are an integral part of
the financial statement.
<PAGE>
CARILLON FUND, INC.
MICRO-CAP PORTFOLIO
STATEMENT OF OPERATIONS
Year Ended December 31, 1998
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding
taxes of $529) 20,340
Interest 4,351
---------
24,691
---------
EXPENSES
Investment advisory fees 28,186
Portfolio accounting fees 22,728
Director's fees 13,261
Professional fees 8,273
Custodial fees and expenses 1,423
Transfer agent fees 1,352
Other 1,257
---------
76,480
Expense Reimbursement (20,895)
---------
55,585
---------
NET INVESTMENT LOSS (30,894)
---------
REALIZED AND UNREALIZED LOSS
Net realized loss on investments (273,180)
---------
Net change in unrealized appreciation/
(depreciation) of investments, and
translation of assets and
liabilities in foreign currencies (81,476)
---------
NET REALIZED AND UNREALIZED GAIN/(LOSS) (354,656)
---------
NET DECREASE IN NET ASSETS FROM OPERATIONS $(385,550)
=========
</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>
Period from
For the Year November 24,1997
Ended December 31,1998 to December 31,1997
<S> <C> <C>
OPERATIONS
Net investment loss $ (30,894) $ (3,754)
Net realized loss on investments (273,180) ---
Net change in unrealized
appreciation/(depreciation)
on investments, and translation
of assets and liabilities in
foreign currencies (81,476) (15,856)
---------- ----------
(385,550) (19,610)
---------- ----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold --- 3,000,000
---------- ----------
NET INCREASE (DECREASE)
IN NET ASSETS (385,550) 2,980,390
NET ASSETS
Beginning of year 2,980,390 ---
---------- ----------
End of year $2,594,840 $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
DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS - 96.06%
BANKING & FINANCIAL SERVICE - 15.81%
Duff & Phelps Credit Rating Company 2,300 $ 126,069
Jefferies Group, Incorporated 2,500 124,063
Mid-Iowa Financial 7,700 103,950
Warren Bancorp, Incorporated 6,200 56,188
----------
410,270
----------
CAPITAL GOODS - 1.44%
LMI Aerospace, Incorporated* 6,000 37,500
----------
CONSUMER CYCLICAL - 19.34%
Decorator Industries, Incorporated 7,500 59,063
Maxwell Shoe Company Incorporated - A* 5,000 54,688
Musicland Stores, Incorporated* 4,000 59,750
Newmark Homes Corporation* 10,000 70,000
Strattec Security Corporation* 3,200 96,000
Supreme International Corporation* 6,900 82,800
Winsloew Furniture, Incorporated* 3,000 79,500
----------
501,801
----------
CONSUMER NON-DURABLE - 22.26%
Advanced Marketing Services 5,000 96,250
Boston Acoustics 4,050 107,324
Marinemax, Incorporated* 9,000 70,875
Orthofix International N.V.* 6,300 88,200
Schlotzsky's, Incorporated* 4,500 44,437
Scientific Games Holdings Corporation* 5,000 94,374
Young Innovations, Incorporated* 5,800 76,124
----------
577,584
----------
ENERGY - 3.65%
Dawson Geophysical Company* 4,000 28,750
Mitcham Industries, Incorporated* 4,000 18,375
OYO Geospace Corporation* 3,300 28,463
Range Resources Corporation 5,558 19,106
----------
94,694
----------
MANUFACTURING - 11.71%
American Building Company* 2,600 63,700
CFC International, Incorporated* 7,500 60,000
CompX International, Incorporated* 3,500 92,313
Lindberg Corporation 4,700 42,741
Omniquip International, Incorporated 3,000 45,000
----------
303,754
----------
SERVICE - 5.59%
Innotrac Corporation* 8,000 145,000
----------
TECHNOLOGY - 16.26%
LCA-Vision, Incorporated* 44,300 60,913
Nam Tai Electronics, Incorporated 4,700 52,874
SPSS, Incorporated* 3,500 66,063
Vertex Communications Corporation* 3,300 52,388
Vtech Holdings Limited 2,400 104,711
Xircom, Incorporated* 2,500 85,000
----------
421,949
----------
Total Common Stocks (cost $ 2,565,859) 2,492,552
----------
FOREIGN COMMON STOCK - 1.60%
HONG KONG - 1.60%
Techtronic Industries 232,800 41,468
----------
Total Foreign Common Stock (cost $65,493) 41,468
----------
SHORT-TERM INVESTMENTS - 5.87%
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
VARIABLE RATE DEMAND NOTES<F1> - 5.87%
Firstar Bank (5.378% due 12/31/31) 62,392 $ 62,392
Pitney Bowes (5.233% due 12/31/31) 89,956 89,956
----------
152,348
----------
Total Short-Term Investments (cost $152,348) 152,348
----------
TOTAL INVESTMENTS - 103.53%
(cost $2,783,700)<F2> 2,686,368
----------
OTHER ASSETS AND LIABILITIES - (3.53%) (91,528)
----------
TOTAL NET ASSETS - 100% $2,594,840
==========
_________
* 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 December 31, 1998.
<F2> Represents cost for income tax purposes which is substantially the same
for financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of December 31, 1998 was $396,775 and ($494,108),
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
- -------------------------------------------------------
DECEMBER 31, 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. Net investment loss for
federal income tax purposes is reclassified to paid-in capital.
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. The fund has a capital loss carry forward of $273,180
which can be carried forward until 2002.
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 $1,775,565 and sold $1,801,078 of securities
for the year ended December 31, 1998, excluding short-term
obligations.
<PAGE>
CARILLON FUND, INC.
MICRO-CAP PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
- ------------------------------------------------------------
Note 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding
throughout the year.
<TABLE>
<CAPTION>
For the Year Period from
Ended November 24, 1997
December 31, 1998 to December 31, 1997
----------------- --------------------
<S> <C> <C>
Net Asset Value,
Beginning of year $ 9.93 $ 10.00
------- -------
Investment Activities:
Net investment income (loss) (.10) (.01)
Net realized and unrealized
gains / (losses) (1.18) (.06)
------- -------
Total from investment Operations (1.28) (.07)
------- -------
Net Asset Value,
End of Year $ 8.65 $ 9.93
======= =======
Total Return (12.89%) (0.7%)
Ratios/Supplemental Data:
Ratio of Net Expenses to
Average Net Assets 1.97% <F1> 2.00% <F1>
Ratio of Net Investment loss
to Average Net Assets (1.10%) <F1> (1.16%)<F1>
Portfolio Turnover Rate 64.22% ----
Net Assets, End of Year (000's) $ 2,595 $ 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 .74%
for the year ended December 31, 1998, and 3.00% for the period ended
December 31, 1997, had the Adviser not reimbursed expenses.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000743773
<NAME> CARILLON FUND, INC.
<SERIES>
<NUMBER> 2
<NAME> EQUITY PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 260,807,637
<INVESTMENTS-AT-VALUE> 249,084,446
<RECEIVABLES> 719,796
<ASSETS-OTHER> 21,200
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 249,825,442
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,042,634
<TOTAL-LIABILITIES> 1,042,634
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 230,628,352
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 548,105
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 29,329,542
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (11,723,191)
<NET-ASSETS> 28,782,808
<DIVIDEND-INCOME> 4,827,377
<INTEREST-INCOME> 1,391,343
<OTHER-INCOME> 0
<EXPENSES-NET> 1,902,748
<NET-INVESTMENT-INCOME> 4,315,972
<REALIZED-GAINS-CURRENT> 29,356,244
<APPREC-INCREASE-CURRENT> (82,894,401)
<NET-CHANGE-FROM-OPS> (49,222,185)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,999,567
<DISTRIBUTIONS-OF-GAINS> 43,531,579
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,482,774
<NUMBER-OF-SHARES-REDEEMED> 3,814,089
<SHARES-REINVESTED> 2,544,159
<NET-CHANGE-IN-ASSETS> (86,844,652)
<ACCUMULATED-NII-PRIOR> 231,700
<ACCUMULATED-GAINS-PRIOR> 43,504,877
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,704,750
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,902,748
<AVERAGE-NET-ASSETS> 305,950,043
<PER-SHARE-NAV-BEGIN> 20.35
<PER-SHARE-NII> 0.25
<PER-SHARE-GAIN-APPREC> (2.80)
<PER-SHARE-DIVIDEND> 0.23
<PER-SHARE-DISTRIBUTIONS> 2.68
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.89
<EXPENSE-RATIO> .006
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000743773
<NAME> CARILLON FUND, INC.
<SERIES>
<NUMBER> 4
<NAME> CAPITAL PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 122,506,433
<INVESTMENTS-AT-VALUE> 109,810,560
<RECEIVABLES> 890,555
<ASSETS-OTHER> 8,567
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 110,709,682
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,031,600
<TOTAL-LIABILITIES> 1,031,600
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 124,790,149
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 233,033
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,649,227)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (12,695,873)
<NET-ASSETS> 109,678,082
<DIVIDEND-INCOME> 1,059,547
<INTEREST-INCOME> 4,340,298
<OTHER-INCOME> 0
<EXPENSES-NET> 1,053,543
<NET-INVESTMENT-INCOME> 4,346,302
<REALIZED-GAINS-CURRENT> (2,555,124)
<APPREC-INCREASE-CURRENT> (21,439,855)
<NET-CHANGE-FROM-OPS> (19,648,677)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,682,563
<DISTRIBUTIONS-OF-GAINS> 7,315,800
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,762,635
<NUMBER-OF-SHARES-REDEEMED> 3,453,975
<SHARES-REINVESTED> 925,235
<NET-CHANGE-IN-ASSETS> (39,151,788)
<ACCUMULATED-NII-PRIOR> 541,406
<ACCUMULATED-GAINS-PRIOR> 7,249,585
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 914,153
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,053,543
<AVERAGE-NET-ASSETS> 133,014,858
<PER-SHARE-NAV-BEGIN> 14.10
<PER-SHARE-NII> 0.41
<PER-SHARE-GAIN-APPREC> (2.14)
<PER-SHARE-DIVIDEND> 0.45
<PER-SHARE-DISTRIBUTIONS> 0.72
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.20
<EXPENSE-RATIO> .008
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000743773
<NAME> CARILLON FUND, INC.
<SERIES>
<NUMBER> 1
<NAME> BOND PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 122,738,988
<INVESTMENTS-AT-VALUE> 125,954,016
<RECEIVABLES> 1,956,096
<ASSETS-OTHER> 6,424
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 127,916,536
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 14,154,225
<TOTAL-LIABILITIES> 14,154,225
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 110,569,343
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 382,160
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (404,220)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,215,028
<NET-ASSETS> 113,762,311
<DIVIDEND-INCOME> 181,630
<INTEREST-INCOME> 8,498,462
<OTHER-INCOME> 0
<EXPENSES-NET> 677,210
<NET-INVESTMENT-INCOME> 8,002,882
<REALIZED-GAINS-CURRENT> (382,978)
<APPREC-INCREASE-CURRENT> (644,567)
<NET-CHANGE-FROM-OPS> 6,975,337
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 7,895,961
<DISTRIBUTIONS-OF-GAINS> 1,121,637
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,379,828
<NUMBER-OF-SHARES-REDEEMED> 3,811,138
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