<PAGE> 1
MANUFACTURERS INVESTMENT TRUST
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
February 25, 1998
Dear Fellow Contract Owners:
It is my pleasure to present the results of operations for 1997. The following
audited financial statements of the Manufacturers Investment Trust (the "Trust),
the mutual fund in which your variable insurance product contract values are
invested, reflect the results of operations for the period ending December 31,
1997.
The past twelve months will be remembered as a stellar year for the bond and
equity markets providing excellent returns for shareholders. The bond market was
marked by falling inflation, a relatively inactive Federal Reserve and rising
prices on almost all types of bonds. U.S. equity markets jumped more than 20%
for an unprecedented third straight year in 1997. Ongoing market volatility and
performance in the international markets reinforces our belief that long-term
investors will fare best with a diversified investment program reviewed
periodically with a professional financial advisor. During 1997, total net
assets of the Trust grew from $6.90 billion at December 31, 1996 to $10.45
billion at December 31, 1997. This 51% increase in net assets for the year
reflects the continued demand for variable insurance products as vehicles for
retirement and estate planning.
At the outset of 1997, we introduced a number of new investment portfolios which
provide you and your planner with access to the broadest range of asset classes
and investment styles from which to build your investment program. Underlying
the selection process for this and our entire group of elite managers is a
strategy based on Modern Portfolio Theory and the Nobel Prize winning Efficient
Frontier theory. In this way, we want to give you an opportunity to build the
strongest possible investment program and create a diversified portfolio of
investments that will help you achieve the maximum amount of long-term returns
at a risk level which is comfortable for you.
No matter how efficient an investment portfolio you might build, your degree of
success in achieving your financial goals will still depend, in part, on the
quality of investment management you choose. Our commitment to you as a Manulife
contract owner is to ensure that your investment with us gets the highest
possible level of attention. For this reason, every one of our professional
investment managers are hand-picked for their recognized expertise in particular
asset classes, such as stocks or bonds, and acknowledged for their distinctive
investment styles. In addition, we continuously monitor each portfolio
subadviser and measure its performance against rigorous criteria to ensure that
our managers meet your expectations.
We are confident that our innovative products and services, along with our
first-rate investment management team will provide you with a solid template for
your financial future. We thank you for choosing Manulife Financial and look
forward to serving you during 1998 and in the years to come.
Sincerely,
/s/ John D. DesPrez III
- ------------------------
John D. DesPrez III
President
<PAGE> 2
MANUFACTURERS INVESTMENT TRUST
INDEX TO ANNUAL REPORT
-------------------------------------------------------------------------------
PAGE
Portfolio Performance and Manager's Commentary....................... iii
Report of Independent Accountants.................................... 1
Statements of Assets and Liabilities................................. 2
Statements of Operations............................................. 9
Statements of Changes in Net Assets.................................. 16
Financial Highlights................................................. 27
Portfolio of Investments:
Pacific Rim Emerging Markets Trust.............................. 63
Science & Technology Trust...................................... 67
International Small Cap Trust................................... 68
Emerging Growth Trust........................................... 69
Pilgrim Baxter Growth Trust..................................... 71
Small/Mid Cap Trust............................................. 72
International Stock Trust....................................... 74
Worldwide Growth Trust.......................................... 78
Global Equity Trust............................................. 80
Small Company Value Trust....................................... 82
Equity Trust.................................................... 87
Growth Trust.................................................... 91
Quantitative Equity Trust....................................... 93
Equity Index Trust.............................................. 95
Blue Chip Growth Trust.......................................... 101
Real Estate Securities Trust.................................... 104
Value Trust..................................................... 105
International Growth and Income Trust........................... 107
Growth and Income Trust......................................... 110
Equity-Income Trust............................................. 112
Balanced Trust.................................................. 115
Aggressive, Moderate and Conservative Asset Allocation Trusts... 117
High Yield Trust................................................ 144
Strategic Bond Trust............................................ 147
Global Government Bond Trust.................................... 152
Capital Growth Bond Trust....................................... 153
Investment Quality Bond Trust................................... 154
U.S. Government Securities Trust................................ 158
Money Market Trust.............................................. 159
Lifestyle Aggressive 1000 Trust................................. 160
Lifestyle Growth 820 Trust...................................... 160
Lifestyle Balanced 640 Trust.................................... 160
Lifestyle Moderate 460 Trust.................................... 160
Lifestyle Conservative 280 Trust................................ 161
Notes to Financial Statements........................................ 162
ii
<PAGE> 3
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO PERFORMANCE AND MANAGER'S COMMENTARY
- --------------------------------------------------------------------------------
TRUST PERFORMANCE
In the following pages we have set forth information regarding the performance
of each Portfolio of the Manufacturers Investment Trust (the "Trust"), excluding
the Money Market Trust. There are several ways to evaluate a Portfolio's
historical performance. One can look at the total percentage change in value,
the average annual percentage change or the growth of a hypothetical $10,000
investment. WITH RESPECT TO ALL PERFORMANCE INFORMATION PRESENTED, IT IS
IMPORTANT TO UNDERSTAND THAT PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
RETURN AND PRINCIPAL FLUCTUATE, AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR
LESS THAN THEIR ORIGINAL COST.
PERFORMANCE TABLES
The Performance Tables show two types of total return information: CUMULATIVE
AND AVERAGE ANNUAL TOTAL RETURNS. A CUMULATIVE TOTAL RETURN is an expression of
a Portfolio's total change in share value in percentage terms over a set period
of time -- one, five and ten years (or since the Portfolio's inception if less
than the applicable period). An AVERAGE ANNUAL TOTAL RETURN takes the
Portfolio's cumulative total return for a time period greater than one year and
shows what would have happened if the Portfolio had performed at a constant rate
each year. In addition, eight Portfolios have had portfolio management changes,
namely the Global Equity, Equity, Blue Chip Growth, Equity-Income, Aggressive
Asset Allocation, Moderate Asset Allocation, Conservative Asset Allocation and
U.S. Government Securities Trusts. For these Portfolios, the tables show an
average annual total return for the period since the current portfolio manager
assumed responsibility. THE TABLES SHOW ALL CUMULATIVE AND AVERAGE ANNUAL TOTAL
RETURNS, NET OF FEES AND EXPENSES OF THE TRUST, BUT DO NOT REFLECT THE INSURANCE
(SEPARATE ACCOUNT) EXPENSES (INCLUDING A POSSIBLE CONTINGENT DEFERRED SALES
CHARGE) OF THE VARIABLE ANNUITY AND VARIABLE LIFE PRODUCTS THAT INVEST IN THE
TRUST.
GRAPH -- CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
The performance graph for each Portfolio shows the change in value of a $10,000
investment over the life of each Portfolio. Each Portfolio's performance is
compared with the performance of one or more broad-based securities indices as a
"benchmark." All performance information includes the reinvestment of dividends
and capital gain distributions, as well as the deduction of ongoing management
fees and Portfolio operating expenses. The benchmarks used for comparison are
unmanaged and include reinvestment of dividends and capital gain distributions,
if any, but do not reflect any fees or expenses. Portfolios that invest in
multiple asset classes are compared with a customized benchmark. This benchmark
is comprised of a set percentage allocation from each of the asset classes in
which the Portfolio invests.
PORTFOLIO MANAGER'S COMMENTARY
Finally, we have provided a commentary by each portfolio manager regarding each
Portfolio's performance during the period ended December 31, 1997.
iii
<PAGE> 4
PACIFIC RIM EMERGING MARKETS TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To achieve long-term growth of capital by investing in a
diversified portfolio that is comprised primarily of common
stocks and equity-related securities of corporations
domiciled in countries in the Pacific Rim region.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Richard Cook, Stephen Hill, Emilia Panadero-Perez
INCEPTION DATE: October 4, 1994
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
PACIFIC RIM BLENDED FINANCIAL FINANCIAL TIMES
MEASUREMENT PERIOD EMERGING TIMES ACTUARIES PACIFIC EX JAPAN FINANCIAL TIMES
(FISCAL YEAR COVERED) MARKETS TRUST INDEX INDEX JAPAN INDEX
- --------------------- ------------- ----- ----- -----------
<S> <C> <C> <C> <C>
SEPTEMBER|1994 10000 10000 10000 10000
DECEMBER|1994 9473 9242 9091 9847
MARCH|1995 9303 9297 9220 9581
JUNE|1995 9748 9604 9743 8987
SEPTEMBER|1995 10097 9978 10122 9338
DECEMBER|1995 10548 10361 10455 9904
MARCH|1996 11184 11205 11520 9901
JUNE|1996 11289 11262 11549 10051
SEPTEMBER|1996 11422 11357 11863 9386
DECEMBER|1996 11582 11816 12829 8226
MARCH|1997 11284 11114 12261 7240
JUNE|1997 11964 12232 13084 8935
SEPTEMBER|1997 10328 10722 11510 7717
DECEMBER|1997 7630 7969 8409 6126
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1997 1 Year Inception Inception
<S> <C> <C> <C>
Blended Financial Times Actuaries Index+ -32.56% -6.75% -20.31%
Financial Times Actuaries Pacific ex Japan Index -34.45% -5.19% -15.91%
Financial Times Actuaries Japan Index -25.53% -14.00% -38.74%
Pacific Rim Emerging Markets Trust (at net asset value) -34.12% -8.01% -23.70%
+ Comprised of 80% Pacific ex Japan and 20% Japan
* All since inception returns for the indices begin on the month-end closest to the actual inception date of the
Trust.
</TABLE>
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: For the year, the Pacific Rim Emerging Markets Trust returned
- -34.1%, below the -25.3% returns of the MSCI Pacific (Free) Index but
approximately in line with the -34.2% returns of the average Morningstar Asia ex
Japan funds. It bears noting that this trust is somewhat uniquely focused on the
developing Asian markets unlike the index and most of our peers. While it is
always a challenge reconciling the absolute size of the decline, 1997 was a
relatively respectable year for this trust given its mandate to invest in the
developing Asian countries most of whom experienced cataclysmic declines in
their local stock markets. The losses for these emerging tigers were further
exaggerated for US investors by the serious devaluation in the local currencies
versus the US dollar. For example, Thailand's market in US dollar terms lost
85%, Philippines lost 45% and Malaysia lost 55%.
ENVIRONMENT: To say the least, the Pacific Rim markets experienced a difficult
year. Japan's economy weakened as the year progressed initially due to the
introduction of a new sales tax and the ending of the benefits of a one-off
income tax reduction. In the latter part of the year, the banking and financial
sector crisis and the economic problems in Southeast Asia further worsened the
economic and financial situation in Japan. The currency crisis which started
with the Thai baht at the end of the second quarter, moved to smaller markets in
the third quarter. In the fourth quarter the focus switched to the Hong Kong
Dollar as speculators attacked the peg. The Hong Kong monetary authorities
defended the currency by raising interest rates to levels not justified on
fundamental grounds, causing panic not only in Hong Kong but in markets
worldwide. Even though some of the troubled Asian countries have received aid
from the International Monetary Fund, sentiment is likely to remain negative for
Asian markets, as there are concerns that Asian governments are being
insufficiently flexible in response to the crisis.
OUTLOOK: The size and character of the declines experienced in the developing
Asian markets may be seen as a potential selling climax that may have priced
much of the crisis into the market. However, even though some of the troubled
Asian countries have received aid from the International Monetary Fund,
sentiment is likely to remain negative for Asian markets for some time as
concerns continue that Asian governments are being insufficiently flexible in
response to the crisis.
iv
<PAGE> 5
SCIENCE & TECHNOLOGY TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks long-term growth of capital. Current income is
incidental to the portfolio's objective.
SUBADVISER: T. Rowe Price Associates, Inc.
PORTFOLIO MANAGERS: Charles A. Morris, Jill L. Hauser, Joseph Klein III, Brian
D. Stansky
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD LIPPER SCIENCE & TECH FUND
(FISCAL YEAR COVERED) SCIENCE & TECHNOLOGY TRUST INDEX
- --------------------- -------------------------- -----
<S> <C> <C>
DEC-96 10000 10000
JAN-97 10744 10780
FEB-97 9896 9805
MAR-97 9344 9067
APR-97 9704 9461
MAY-97 10840 10586
JUN-97 11040 10685
JUL-97 12336 12167
AUG-97 12168 12242
SEP-97 12616 12761
OCT-97 11680 11413
NOV-97 11632 11316
DEC-97 11071 10775
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
Lipper Science & Tech Fund Index* 7.75%
Science & Technology Trust (at net asset value) 10.71%
* All since inception returns for the indices begin on the month-end closest to the
actual inception date of the Trust.
</TABLE>
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: For the year, the Science & Technology Trust returned 10.7%, ahead
of the 8.4% return generated by the average Morningstar Specialty Technology
funds. As we enter 1998 there are several challenges facing science and
technology companies. These challenges include slowing growth in key segments of
the science and technology sector, increasing pricing pressure across most
segments of the industry, intensified competition in select markets, and the
economic crisis in Southeast Asia.
ENVIRONMENT: Growth in the personal computer and wireless communications
industries -- the two primary drivers of sector expansion over the past several
years -- is slowing. Lower prices and the absence of breakthrough software
applications are depressing growth in the personal computer industry while
vendors' efforts to optimize cash flow and financing difficulties are limiting
growth in the wireless communications market. The economic crisis in Southeast
Asia is likely to exacerbate the current growth and pricing dynamics. While it
is difficult to quantify the precise impact on the technology sector from the
current economic and currency crises in Southeast Asia, turmoil in this region
should reduce the growth rate of worldwide technology spending and complicate
the sector's fragile pricing environment.
OUTLOOK: We believe the combination of several significant industry product
cycles, reasonable valuation levels, and waning investor sentiment toward this
sector position stocks of science and technology companies for a steady and
sustainable recovery as 1998 progresses. In the latter stages of 1998 and into
1999 new product cycles should include lower cost, higher performance
microprocessors from Intel, new computer operating systems from Microsoft,
digital cellular network deployment, a variety of broadband communications
technologies, and critical mass in electronic commerce. In addition, the sharp
correction in this sector since late October has resulted in more reasonable
valuation levels and subdued investor sentiment -- characteristics that usually
accompany meaningful recoveries in the stock prices of science and technology
companies. Accordingly, we will maintain our investment philosophy of managing a
diversified, yet concentrated, portfolio of science and technology stocks while
keeping modest levels of cash reserves to take advantage of any opportunities.
v
<PAGE> 6
INTERNATIONAL SMALL CAP TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to provide long-term capital appreciation by investing
primarily in securities issued by foreign companies which
have total market capitalization or annual revenue of $1
billion or less.
SUBADVISER: Founders Asset Management, Inc.
PORTFOLIO MANAGER: Michael W. Gerding
INCEPTION DATE: March 4, 1996
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD INTERNATIONAL SMALL CAP
(FISCAL YEAR COVERED) TRUST MSCI WORLD EX US INDEX
- --------------------- ----- ----------------------
<S> <C> <C>
FEB-96 10000 10000
MAR-96 10048 10212
10344 10513
10576 10333
JUN-96 10624 10378
10240 10074
10304 10112
SEP-96 10424 10386
10632 10317
10832 10745
DEC-96 10920 10599
11033 10271
11298 10429
MAR-97 11257 10443
10998 10510
11496 11205
JUN-97 11641 11806
11601 12026
11143 11143
SEP-97 11560 11771
11086 10886
11151 10766
DEC-97 11006 10872
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1997 Year 1 Inception Inception
<S> <C> <C> <C>
MSCI World ex US Index* 2.58% 4.67% 8.72%
International Small Cap Trust (at net asset value) 0.79% 5.40% 10.06%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the International Small Cap Trust rose 0.8% trailing
both the MSCI EAFE Index which gained 2.1% and the MSCI World ex US Index which
gained 2.6%. Although not directly comparable, the Trust's returns trailed the
4.8% return on the average Morningstar Foreign funds which typically invest in
international large cap stocks.
ENVIRONMENT: As we enter 1998, the Asian currency crisis and international
market volatility continue to dominate investors' attention around the world. In
response to the first warning signs of problems in Asia, we aggressively reduced
our exposure to but one company, a Hong Kong manufacturer with nearly all of
their sales outside Asia. We have limited exposure to Japan. In Europe we are
significantly overweight. We continue to expect improving economic conditions.
Small companies with more sensitivity to their local economies plus the
potential for lower interest rates and continued corporate restructuring should
provide superior earnings growth.
OUTLOOK: In spite of the difficult markets of the last several months, our
outlook for small growth companies around the world is very positive. During the
last year, we visited with nearly 1,000 companies from over 20 countries. Our
focus is the same -- build a portfolio of the most attractive, rapidly growing
small companies from around the world one company at a time, without the
constraints of indices or top-down models. We believe this focus has the Trust
well positioned to take advantage of the growth we see in Europe and the
eventual recovery in Asia.
vi
<PAGE> 7
EMERGING GROWTH TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks maximum capital appreciation by investing primarily in
a portfolio of equity securities of domestic companies. The
portfolio ordinarily will invest at least 65% of its total
assets in common stocks or warrants of emerging growth
companies that represent attractive opportunities for
maximum capital appreciation.
SUBADVISER: Warburg Pincus Asset Management, Inc.
PORTFOLIO MANAGERS: Elizabeth B. Dater, Stephen J. Lurito
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) EMERGING GROWTH TRUST RUSSELL 2000 GROWTH INDEX
- --------------------- --------------------- -------------------------
<S> <C> <C>
DECEMBER|1996 10000 10000
JANUARY|1997 10092 10242
FEBRUARY|1997 9641 9623
MARCH|1997 9049 8945
APRIL|1997 8995 8841
MAY|1997 10034 10170
JUNE|1997 10481 10515
JULY|1997 11087 11053
AUGUST|1997 11194 11385
SEPTEMBER|1997 12180 12293
OCTOBER|1997 11544 11554
NOVEMBER|1997 11408 11279
DECEMBER|1997 11714 11286
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
Russell 2000 Growth Index* 12.86%
Emerging Growth Trust (at net asset value) 17.14%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: 1997 was an exceptional year for the Emerging Growth Trust. For the
year, the Trust posted a cumulative return of 17.1% versus the 12.9% registered
by its comparative benchmark, the Russell 2000 Growth Index and the 14.4% return
for the average Morningstar Small Cap Growth fund.
ENVIRONMENT: Although small cap and emerging growth stocks faced numerous
problems throughout the year, this portfolio drew on the strength of its stock
selection across a number of industries including business services and
financial services. During the earlier part of the year, the managers found
value in sectors such as health care including pharmaceuticals and retail, and
in the financial sector in the later part of the year.
OUTLOOK: The portfolio managers and Warburg Pincus analysts believe that
aggressive stocks may have earnings growth nearly double that of large cap
stocks during 1998. These large companies are vulnerable both to a slowdown in
Asian demand and currency translation losses due to the strong dollar. Smaller
companies, which typically derive most of their revenues domestically (the
notable exception being the technology sector), are expected to be much less
affected by this aspect of Asia's difficulties. This combination of relatively
superior earnings growth and undemanding valuations should draw investor
attention back to the small cap group at some point over the next several
months, though the exact timing of events is hard to predict. Two other factors
that should lend incremental support to the stocks are the subdued IPO market
which is a limiting factor on new supply, and the recent reduction in the
capital gains tax which has increased the after-tax appeal of small company
shares. Combined, these elements all add up to a portfolio that is
well-positioned to take advantage of the rebound anticipated for the group.
vii
<PAGE> 8
PILGRIM BAXTER GROWTH TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks capital appreciation by investing in companies
believed by the subadviser to have an outlook for strong
earnings growth and the potential for significant capital
appreciation.
SUBADVISER: Pilgrim Baxter & Associates, Ltd.
PORTFOLIO MANAGERS: Bruce J. Muzina, Gary L. Pilgrim
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) PILGRIM BAXTER GROWTH TRUST RUSSELL 2000 GROWTH INDEX
- --------------------- --------------------------- -------------------------
<S> <C> <C>
DEC-96 10000 10000
JAN-97 10128 10242
FEB-97 9296 9623
MAR-97 8488 8945
APR-97 8504 8841
MAY-97 9384 10170
JUN-97 9792 10515
JUL-97 10584 11053
AUG-97 10256 11385
SEP-97 10704 12293
OCT-97 10088 11554
NOV-97 9872 11279
DEC-97 10000 11286
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
Russell 2000 Growth Index* 12.86%
Pilgrim Baxter Growth Trust (at net asset value) 0.00%
* All since inception returns for the indices begin on the month-end closest to the
actual inception date of the Trust.
</TABLE>
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: For the year, the Trust was flat, underperforming the 23.1% return
on the Russell MidCap Growth Index and the 15.5% return of the average
Morningstar MidCap Growth fund significantly. Indeed, it would be difficult to
describe -- a priori -- a more arduous investment environment for our particular
style than the year just passed.
ENVIRONMENT: The first quarter of the year was marked by a severe relative
valuations correction in high growth smaller cap stocks. Investors' funds flowed
into large cap, stable growth companies. As a result, the higher the earnings
growth rate and price/earnings ratio and the smaller the market cap, the more
severe the underperformance. Given our portfolio's much higher earnings growth
characteristics we captured the greatest proportion of the negative impact.
In the middle part of the year the low relative valuations and strong relative
earnings growth produced a spectacular rally where the trust outperformed our
benchmarks by a considerable margin. However, the Asian crisis reversed the
recovery. Technology companies and many of our energy service companies do a
significant amount of business in the area and felt the market's swift and
severe retribution.
OUTLOOK: Masked in a disappointing year, however, is the fact that we firmly
believe that our style will continue to produce above average long-term returns.
Four of our five top holdings produced better than 50% appreciation in 1997. Our
portfolio characteristics remain remarkably unchanged from one year ago. We
continue to strive to assemble portfolios of the most rapidly growing mid cap
companies that we are able to find. We believe that the mid-year rally in 1997
demonstrates that the market still has an appetite for earnings growth companies
and that our style will in time reassert itself.
viii
<PAGE> 9
SMALL/MID CAP TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to provide long-term capital appreciation by investing
at least 65% of its assets in companies that at the time of
purchase have total market capitalization between $500
million and $5 billion.
SUBADVISER: Fred Alger Management, Inc.
PORTFOLIO MANAGER: David D. Alger
INCEPTION DATE: March 4, 1996
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD SMALL/MID CAP RUSSELL 2000 S&P MIDCAP 400 50%/50%
(FISCAL YEAR COVERED) TRUST GROWTH INDEX INDEX COMPOSITE INDEX
- --------------------- ----- ------------ ----- ---------------
<S> <C> <C> <C> <C>
FEB-96 10000 10000 10000 10000
MAR-96 10312 10198 10120 10159
10824 10981 10429 10704
10976 11545 10569 11051
JUN-96 10504 10794 10411 10609
9368 9476 9706 9602
9904 10177 10266 10234
SEP-96 10456 10702 10714 10721
10248 10240 10745 10505
10864 10525 11350 10947
DEC-96 10696 10730 11362 11060
11232 10990 11788 11401
10584 10326 11692 11010
MAR-97 9984 9598 11194 10388
10064 9487 11483 10462
10848 10913 12487 11705
JUN-97 11448 11283 12838 12068
12520 11860 14109 12974
12384 12216 14092 13161
SEP-97 13264 13191 14902 14065
12544 12398 14254 13336
12576 12103 14465 13276
DEC-97 12328 12110 15026 13538
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1997 1 Year Inception Inception
<S> <C> <C> <C>
S&P MidCap 400 Index* 32.25% 24.87% 50.26%
Russell 2000 Growth Index* 12.86% 11.01% 21.10%
50%/50% Composite Index*+ 22.40% 17.96% 35.38%
Small/Mid Cap Trust (at net asset value) 15.26% 12.17% 23.28%
* All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust.
+ Comprised of 50% of the return of the S&P MidCap 400 Index and 50% of the return of the Russell 2000 Growth Index.
</TABLE>
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: In a year when large caps outperformed small caps, value
significantly outperformed growth, and technology stocks underperformed while
defensive sectors such as utilities were strong, the Small/Mid Cap Trust posted
a satisfactory annual return of 15.3%. Relative performance was strong when
compared to the 12.9% returns of the small cap Russell 2000 Growth Index but
lagged the 23.1% returns of the Russell Mid Cap Growth Index. Performance was
also in line with the 15.5% returns of the average Morningstar Mid Cap Growth
fund.
ENVIRONMENT: For investors in small to mid cap growth equities, 1997 consisted
of two quarters of euphoric prosperity sandwiched between two quarters of acute
volatility. As speculative investments such as smaller cap growth stocks were
sold off amid fear that the Federal Reserve would raise interest rates, the
Trust began the year with a sizable negative return in the first quarter. The
second quarter marked the reversal of the defensive psychology that had plagued
the market since July of 1996. As fears of inflation and subsequent Fed action
ebbed, investors could no longer ignore the relative values of small to mid cap
growth stocks. The Trust came roaring back in the second quarter and maintained
its ascent in the third quarter when a sizable position in technology helped
fuel performance.
During the fourth quarter, incidents of international economic turbulence led to
a heightened sense of domestic uncertainty, which in turn triggered an abrupt
return to defensive equity investing. Technology stocks with considerable
business in Asia, particularly semiconductors, were among the hardest hit.
ix
<PAGE> 10
INTERNATIONAL STOCK TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks long-term growth of capital by investing primarily in
common stocks of established, non-U.S. companies.
SUBADVISER: Rowe Price-Fleming International, Inc.
PORTFOLIO MANAGERS: Martin G. Wade, Mark J.T. Edwards, John R. Ford, James B.M.
Seldon, David J.L. Warren
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) INTERNATIONAL STOCK TRUST MSCI EAFE INDEX
- --------------------- ------------------------- ---------------
<S> <C> <C>
DEC-96 10000 10000
JAN-97 9808 9652
FEB-97 9904 9813
MAR-97 9895 9850
APR-97 9974 9905
MAY-97 10602 10552
JUN-97 11046 11136
JUL-97 11334 11319
AUG-97 10296 10476
SEP-97 10950 11065
OCT-97 10122 10217
NOV-97 10105 10115
DEC-97 10138 10206
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
MSCI EAFE Index* 2.06%
International Stock Trust (at net asset value) 1.38%
* All since inception returns for the indices begin on the month-end closest to the
actual inception date of the Trust.
</TABLE>
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: For the year ended December 31, 1997, the International Stock Trust
gained 1.4%, in line with the MSCI EAFE benchmark which rose 2.1% but lagging
the 4.8% returns for the average Morningstar Foreign funds.
ENVIRONMENT: The dollar had a strong year gaining some ground against the yen
and even more against European currencies, and this hampered portfolio
performance. European markets were generally good performers. Asian markets
performed poorly, with Japan's Nikkei falling back to its bear market lows. In
Latin America, markets rose sharply despite their Asia-induced stumble towards
year end.
Country allocation relative to the benchmark index was positive over the year.
Underweighting Japan and overweighting Latin America added value although this
was eroded by an underweight position in the UK and an overweight position in
the first half of the year in some smaller Asian markets. Stock selection was a
small negative during 1997. Over the year, underperformance in Europe,
particularly in the Netherlands and Germany, was the main culprit with our
favorite growth stocks starting the year poorly.
OUTLOOK: Looking forward, the outlook remains reasonable for European markets
with corporate profits growth likely to be strong, supported by good economic
growth and further restructuring. We believe that Latin American markets remain
attractive given continued commitment to political and economic reform in the
region. The relative resilience of these markets in recent months despite the
problems in the Pacific has been encouraging. The outlook for Asia is more
uncertain and we remain cautious about the prospects for the region's smaller
markets as we believe that their problems are more deep-seated than is generally
realized. Similarly, we remain cautious on the Japanese market despite recent
weakness -- the economic outlook there is poor and the problems of the banking
sector remain severe. Thus, we expect that 1998 performance is likely to be
driven by the European and Latin American equity markets, with Asia remaining
fragile. While there may be some bounces in markets which have fallen a long way
already, we believe it is a time to be particularly selective when looking at
stocks traded in Asia.
x
<PAGE> 11
WORLDWIDE GROWTH TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks long-term growth of capital by normally investing at
least 65% of its total assets in equity securities of growth
companies in a variety of markets throughout the world.
SUBADVISER: Founders Asset Management, Inc.
PORTFOLIO MANAGER: Michael W. Gerding
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) WORLDWIDE GROWTH TRUST MSCI WORLD INDEX
- --------------------- ---------------------- ----------------
<S> <C> <C>
DEC-96 10000 10000
JAN-97 10120 10122
FEB-97 10208 10240
MAR-97 10208 10040
APR-97 10320 10370
MAY-97 10912 11012
JUN-97 11176 11563
JUL-97 11624 12097
AUG-97 11176 11290
SEP-97 11696 11905
OCT-97 11288 11280
NOV-97 11224 11482
DEC-97 11329 11623
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
MSCI World Index* 16.23%
Worldwide Growth Trust (at net asset value) 13.29%
* All since inception returns for the indices begin on the month-end closest to the
actual inception date of the Trust.
</TABLE>
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Worldwide Growth Trust rose 13.3%, ahead of the
10.1% returns from the average Morningstar World funds but trailing the MSCI
World Index which gained 16.2%.
ENVIRONMENT: As we enter 1998, the Asian currency crisis and international
market volatility continue to dominate investors' attention around the world. In
response to the first warning signs of problems, we aggressively reduced our
exposure to Asia because we no longer had any confidence in our earnings
estimated for our companies. Currently, with the exception of Japan, we have no
holdings in Asia. Our Japanese exposure is relatively limited, as we remain
concerned about the health of the economy and companies' ability to grow their
earnings in 1998.
We are finding the best opportunities in Europe where we expect improving
economic conditions for the third straight year. This coupled with the potential
for lower interest rates and corporate restructuring should lead to much better
earnings across Europe. We look for the same broad impact from these
restructurings that the US has already experienced. We are significantly
overweight in Europe and are finding very attractive companies across many
diverse industries.
OUTLOOK: In spite of the difficult markets of the last several months, our
outlook for growth companies around the world is very positive. During the last
year, we visited with nearly 1,000 companies from over 20 countries. Our focus
is the same -- build a portfolio of the most attractive, rapidly growing
companies from around the world one company at a time regardless of where they
are located.
xi
<PAGE> 12
GLOBAL EQUITY TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek long term capital appreciation by investing
primarily in equity securities throughout the world,
including U.S. issuers and emerging markets.
SUBADVISER: Morgan Stanley Asset Management Inc.
PORTFOLIO MANAGER: Frances Campion
INCEPTION DATE: March 18, 1988*
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) GLOBAL EQUITY TRUST MSCI WORLD INDEX
- --------------------- ------------------- ----------------
<S> <C> <C>
FEB-88 10000 10000
9890 10000
10000 10128
9761 9927
9870 9915
9681 10103
9252 9549
9771 9956
10209 10621
10110 10992
DEC-88 10120 11093
10568 11497
10439 11427
10279 11355
10528 11619
10658 11337
10887 11211
11775 12480
11924 12179
12383 12525
12024 12104
12183 12595
DEC-89 12532 13001
12014 12397
11864 11867
11745 11153
11338 10995
12421 12155
12594 12071
12891 12183
11757 11045
10531 9882
11093 10807
11052 10632
DEC-90 11226 10856
11593 11256
12462 12299
12094 11939
12125 12034
12342 12309
11618 11551
12156 12098
12073 12062
12208 12380
12373 12583
11877 12037
DEC-91 12663 12916
12746 12679
12818 12463
12363 11878
12718 12046
13315 12527
12948 12110
12707 12144
12749 12442
12456 12330
12110 11998
12561 12215
DEC-92 12571 12317
12613 12360
12791 12655
13567 13392
14306 14014
15102 14339
14975 14222
15357 14518
16196 15186
16281 14908
16568 15321
15538 14457
DEC-93 16706 15166
17704 16169
17747 15962
17205 15277
17709 15752
17450 15795
17644 15754
18065 16056
18659 16543
17979 16111
18206 16572
17029 15856
DEC-94 16996 16013
16068 15776
16057 16001
16694 16769
17096 17371
17130 17523
17073 17521
18062 18400
17926 17994
18108 18521
17687 18232
17812 18868
DEC-95 18301 19423
18494 19778
18665 19903
19108 20233
19767 20713
19582 20734
19570 20842
18484 20108
18912 20343
19085 21143
18981 21295
20206 22492
DEC-96 20610 22136
20656 22406
21176 22668
21003 22224
21197 22955
22674 24376
23792 25595
24781 26778
23573 24992
24845 26354
23920 24970
24036 25417
DEC-97 24896 25730
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since* Since
Periods Ending December 31, 1997 1 Year 5 Years Inception Oct 1, 1996 5 Years Inception
<S> <C> <C> <C> <C> <C> <C>
MSCI World Index** 16.23% 15.87% 10.18% 17.01% 21.70% 157.30%
Global Equity Trust (at net asset value) 20.80% 14.64% 9.77% 23.75% 98.04% 148.96%
* Current subadviser assignment became effective 10/1/96.
** All since inception returns for the indices begin on the month-end closest to the actual inception date of the Trust.
</TABLE>
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Global Equity Trust returned 20.8%, well above
both the 10.1% returns for the average Morningstar World fund and the 16.2%
increase in the MSCI World Index. Outperformance during 1997 came largely from
the combination of our heavily underweight position in Japan and Southeast Asia
and strong Japanese stock selection, notably the large exporters which continued
to benefit from yen weakness. Stock selection in many European markets,
particularly financials, also contributed, as did our overweighting in
continental Europe.
ENVIRONMENT: After beginning 1997 as perceivably one of the most 'at risk'
markets on a valuation basis, the US ended the year again among the strongest
developed markets. The 'Goldilocks' investment scenario prevailed: a firming
dollar, robust growth, benign inflation (despite full employment), shrinking
supply in both debt and equities and booming demand, despite a 0.25% rise in the
Fed Funds Rate in February and warnings from the Federal Reserve Chairman of
'irrational exuberance'.
In Europe, weaker currencies, lower yields, accelerating restructuring and
consolidation drove exceptional local currency returns. The UK lagged its
continental counterparts as the newly independent Bank of England hiked interest
rates 1.25% in an attempt to subdue the overheated domestic economy. In Japan, a
weak domestic economy following April's VAT hike, the spectre of deregulation,
and the deepening banking crisis brought a further loss of confidence. Some hope
was extended by year end tax cuts, increasing government willingness to
restructure its bulking system and the collapse of Yamaichi, Japan's 4th largest
broker, perhaps heralding a breakdown in the traditional keiretsu 'convoy'
system. Significant risks to Japan remain, however, not least the threat to
corporate earnings posed by Asian devaluations. Despite the IMF 'bail out' of
Korea, Indonesia and Thailand, the austerity programs, recessions and necessary
reforms in these economies have barely begun and the political willingness to
achieve this not yet demonstrated.
OUTLOOK: Given a projected slowdown in global growth, the US Treasury market is
now predicting the Fed will case rates. If mid single digit growth can be
maintained, and inflation remains quiescent, the US market is arguably fairly
valued with long bond yields at current levels. We remain slightly underweight
in the US, finding better relative value in Europe, particularly Ireland and the
UK. We have moved from market to over weight in the UK recently having found
several strong business franchises with management dedicated to maximizing
shareholder value. Despite continued underperformance, we still struggle to find
value in Japan, other than in selected sectors such as pharmaceuticals. Hence we
expect to remain underweight in the foreseeable future. We also remain cautious
about Asia as a whole despite the exceptionally steep sell off.
xii
<PAGE> 13
SMALL COMPANY VALUE TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek long term growth of capital by investing in equity
securities of smaller companies which are traded principally
in the markets of the United States.
SUBADVISER: Rosenberg Institutional Equity Management
PORTFOLIO MANAGERS: Barr M. Rosenberg, Kenneth Reid, Floyd Coleman, Stephen Dean
INCEPTION DATE: October 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) SMALL COMPANY VALUE TRUST RUSSELL 2000 INDEX
<S> <C> <C>
SEP-97 10000 10000
OCT-97 9512 9728
NOV-97 9496 9835
DEC-97 9552 9665
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
Russell 2000 Index* -3.35%
Small Company Value Trust (at net asset value) -4.48%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: Since inception in the fourth quarter, the Trust returned -4.5%,
below the return on the benchmark Russell 2000 Index.
ENVIRONMENT: The fourth quarter of 1997 marked the end of the strongest three
year period in the history of the US equity market with the S&P 500 posting a
return of 125% during this three-year period. The market moved down about 3% in
October as most equity markets in the world reacted to the problems in Asia.
However, the US market rebounded in November and December with the S&P 500 Index
ending up nearly 3% for the quarter. Small stocks substantially underperformed
larger stocks during the quarter with the Russell 2000 Index falling by 3.35%.
Over the quarter, our exposures to risk factors (value, growth, beta,
capitalization) generally helped our performance. Performance was hurt by
industry exposures (especially modest underweightings in drug and electric
utility stocks.)
OUTLOOK: Our sector, industry, and risk exposures will, on average, be in line
with the Russell 2000 except for a small persistent value bias, as we seek to
outperform the benchmark by picking undervalued stocks, not by betting on
factors or industries.
xiii
<PAGE> 14
EQUITY TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek growth of capital by investing primarily in common
stocks of United States issuers and securities convertible
into or carrying the right to buy stocks.
SUBADVISER: Fidelity Management Trust Company
PORTFOLIO MANAGERS: Katherine Collins, Richard B. Fentin
INCEPTION DATE: June 18, 1985*
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) EQUITY TRUST S&P 500 INDEX BLENDED INDEX
- --------------------- ------------ ------------- -------------
<S> <C> <C> <C>
10000 10000 10000
10034 10000 10000
10077 9974 9974
9952 9913 9913
9549 9595 9595
9916 10024 10024
10452 10742 10742
DEC-85 10889 11243 11243
11153 11293 11293
11718 12152 12152
12121 12825 12825
11735 12666 12666
12179 13362 13362
12544 13583 13583
12598 12810 12810
13486 13769 13769
12808 12637 12637
13095 13340 13340
13191 13681 13681
DEC-86 12904 13320 13320
14730 15109 15109
16069 15733 15733
16487 16161 16161
16711 16018 16018
16966 16183 16183
17583 16991 16991
18465 17837 17837
18988 18524 18524
18552 18116 18116
13390 14218 14218
12559 13053 13053
DEC-87 13791 14017 14017
13963 14615 14615
15039 15302 15302
15381 14840 14840
15770 15000 15000
15748 15117 15117
16615 15819 15819
16329 15755 15755
15792 15234 15234
16450 15880 15880
16735 16313 16313
16274 16082 16082
DEC-88 16648 16373 16373
17921 17556 17556
17515 17119 17119
17649 17523 17523
18626 18427 18427
19526 19168 19168
19204 19065 19065
20736 20777 20777
22158 21178 21178
22014 21095 21095
20903 20604 20604
21070 21032 21032
DEC-89 21258 21529 21529
19526 20084 20084
19892 20343 20343
20525 20878 20878
20010 20362 20362
21483 22348 22348
21119 22191 22191
20622 22120 22120
18305 20123 20123
17328 19133 19133
17080 19062 19062
18040 20290 20290
DEC-90 18752 20846 20846
19546 21767 21767
20721 23325 23325
21119 23881 23881
21341 23947 23947
22218 24972 24972
21324 23831 23831
22100 24946 24946
22572 25533 25533
22184 25114 25114
22555 25450 25450
21290 24422 24422
DEC-91 22116 27214 27214
22690 26708 26708
22858 27049 27049
21729 26519 26519
21170 27291 27291
21119 27438 27438
20504 27040 27040
21239 28130 28130
20743 27562 27562
21051 27879 27879
21922 27979 27979
23238 28922 28922
DEC-92 23870 29301 29301
24519 29515 29515
23784 29913 29913
24588 30557 30557
24109 29808 29808
25856 30613 30613
26052 30714 30714
25571 30569 30569
26641 31734 31734
27532 31499 31499
27818 32139 32139
27104 31837 31837
DEC-93 27764 32228 32228
28798 33308 33308
28584 32409 32409
27407 30999 30999
27748 31402 31402
27409 31914 31914
26166 31125 31125
26750 32156 32156
28087 33464 33464
27447 32658 32658
28407 33406 33406
27428 32180 32180
DEC-94 27616 32650 32650
27409 33498 33498
28501 34798 34798
29594 35828 35828
30955 36871 36871
32112 38327 38327
34672 39228 39228
37442 40534 40534
37840 40644 40644
38997 42347 42347
38864 42198 42198
39832 44055 44055
DEC-95 39433 44870 44870
40439 46396 46396
41387 46827 46827
41785 47277 47277
43248 47972 47972
44589 49209 49209
43751 49396 49396
41007 47213 47213
42515 48209 48209
44756 50923 50923
45175 52329 52329
47688 56285 56285
DEC-96 47374 55170 55170
50181 58619 58619
48233 59076 59076
45217 56648 56648
47164 60030 60030
50659 63686 63686
52261 66539 66539
56071 71835 72088
55125 67812 71309
57700 71528 75381
54258 69139 72449
55283 72341 74173
DEC-97 56492 73585 76213
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since* Since
Periods Ending December 31, 1997 1 Year 5 Years 10 Years Inception Dec 13, 1991 5 Years 10 Years Inception
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Blended Index+** 38.14% 21.07% 18.45% 17.64% 20.57% 160.10% 443.73% 662.13%
S&P 500 Index** 33.38% 20.22% 18.04% 17.31% 19.88% 151.13% 424.98% 635.85%
Equity Trust (at net asset value) 19.25% 18.80% 15.14% 14.81% 17.20% 136.67% 309.63% 464.92%
</TABLE>
* Current subadviser assignment became effective 12/13/91.
** All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
+ Blended Index reflects change from S&P 500 Index to the Russell MidCap Index
as primary benchmark, effective July 1997. This change was made to more
accurately reflect the investment style of the portfolio.
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: The Equity Trust returned 19.3% versus gains of 24.1% for the
average Morningstar Mid-Cap Blend fund and 29.0% for the Russell Mid Cap Index.
ENVIRONMENT: 1997 was a transitional year for this trust. At the end of the
second quarter the Trust had a manager change with responsibility going to two
Fidelity managers -- Rich Fentin, one of Fidelity's most experienced value
managers who also manages Fidelity Value, and Catherine Collins, who also
manages Fidelity MidCap Growth. The resulting portfolio, a blend of 50% value
and 50% mid cap growth should leverage the traditional strengths of Fidelity's
stock-picking ability in the broadest range of medium sized companies where
Fidelity's research depth has historically added tremendous value.
For the six months ending December 31, 1997, the Trust's mid cap growth stocks
were up 15.5% compared to 17.1% for the S&P MidCap with strong performance
coming from retail, healthcare and a variety of technology holdings. The Trust's
mid cap value stocks significantly trailed the benchmark for the six months
ending December 31, 1997, returning 4.9% versus a gain of 13.4% for the
benchmark. Performance was hurt by intermediate, technology and consumer product
positions. Retail and energy holdings added to performance.
In 1997, investors were once again drawn to large-cap growth stocks, with
recognizable names and consistent earnings. Volatility in global markets in
October exacerbated this flight to large-cap quality, to the detriment of small
and mid cap growth stocks. As a result, the NASDAQ Composite and the Russell
2000 significantly trailed large cap indices, and large cap stocks recorded
their third consecutive year of over 20% returns. Because of investors' bent
towards a handful of large cap stocks, it has become increasingly difficult over
the past few years to beat the S&P 500, and it was no different in 1997. Last
year, only 10.3% of actively managed funds beat the S&P 500. In the small
capitalization arena, financial services led the market for the third
consecutive year. Consumer non-durables were also strong, followed closely by
utilities. Technology and healthcare were laggards for the year.
xiv
<PAGE> 15
GROWTH TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to provide long-term growth of capital by investing at
least 65% of its assets in common stocks of well-
established, high-quality growth companies that the
subadviser believes have the potential to increase earnings
faster than the rest of the market.
SUBADVISER: Founders Asset Management, Inc.
PORTFOLIO MANAGER: Edward F. Keely
INCEPTION DATE: July 15, 1996
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) GROWTH TRUST S&P 500 INDEX
- --------------------- ------------ -------------
<S> <C> <C>
JUN-96 10000 10000
JUL-96 9936 9558
AUG-96 10304 9760
SEP-96 10808 10309
OCT-96 10768 10594
NOV-96 11400 11395
DEC-96 11053 11169
JAN-97 11697 11867
FEB-97 11432 11960
MAR-97 11077 11468
APR-97 11593 12153
MAY-97 12293 12893
JUN-97 12937 13470
JUL-97 14056 14543
AUG-97 13412 13728
SEP-97 14081 14481
OCT-97 13485 13997
NOV-97 13598 14645
DEC-97 13855 14897
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average-Annual-Total-Return Cumulative-Total-Return
Since Since
Periods Ending December 31, 1997 1 Year Inception Inception
<S> <C> <C> <C>
S&P 500 Index* 33.38% 30.44% 48.97%
Growth Trust (at net asset value) 25.35% 25.03% 38.55%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Growth Trust rose 25.4%, a little behind the
average Morningstar Large Growth fund at 26.5% and also lagging the S&P Barra
500 Growth Index which rose 36.5%.
ENVIRONMENT: We have just been through a period of time where the classic growth
stocks, particularly technology, have been severely impacted by recent market
volatility. The technology sector has been most affected by the Asian turmoil
simply because many of these companies are heavily dependent on economic growth
in foreign markets. As a defensive strategy, we have sold many of our technology
stocks and brought our technology weighting down from October. The technology
stocks we continue to own are of the highest quality with little foreign
exposure. We have also scaled back the total number of companies in the
portfolio. This allows us to stay focused on a smaller group of companies while
maintaining a certain amount of liquidity in the Trust. The Growth Trust is
currently invested approximately 82% in equities with 17% in cash.
OUTLOOK: Companies in the Standard & Poor's Index of 500 Stocks will probably
see earnings growth around 5-7% this year in part due to Asia, and in part
because comparisons for earnings growth are more difficult than they have been
in the past. We remain focused in the Growth Trust on mid-to-large
capitalization growth companies with the fundamental strengths for growth in
earnings per share. With valuations at historically high levels, it is quite
challenging to find companies with good earnings and appreciation potential.
Many of our companies may be undergoing significant life cycle changes such as
restructuring or focusing on specific product lines.
We are also looking for companies with significant catalysts to accelerate
earnings growth as well as companies with low Asian exposure. We have positioned
the Trust for a volatile environment with companies that we hope will grow more
than the market grows. We have found good opportunities in pharmaceuticals,
consumer products, consumer finance companies and food & beverage firms.
xv
<PAGE> 16
QUANTITATIVE EQUITY TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: The investment objective of the Quantitative Equity Trust is
to achieve intermediate and long-term growth through capital
appreciation and current income by investing in common
stocks and other equity securities of well established
companies with promising prospects for providing an above
average rate of return.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Mark Schmeer, Rhonda Chang
INCEPTION DATE: April 30, 1987
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) QUANTITATIVE EQUITY TRUST S&P 500 INDEX
--------------------- ------------------------- -------------
<S> <C> <C>
10000 10000
9935 10103
10285 10607
10570 11135
11328 11564
11144 11310
8317 8876
7796 8149
DEC-87 8502 8750
8500 9124
8982 9553
8682 9264
8834 9364
8893 9437
9387 9875
9076 9836
8923 9510
9282 9913
9249 10184
9136 10039
DEC-88 9340 10221
9854 10960
9775 10687
10154 10939
10671 11504
11150 11966
10875 11902
11772 12971
11836 13221
12001 13169
11629 12862
11963 13130
DEC-89 12203 13440
11352 12538
11576 12700
11820 13034
11592 12712
12532 13951
12558 13854
12578 13809
11650 12562
11125 11944
10979 11900
11482 12666
DEC-90 11707 13013
12333 13589
13047 14562
13207 14908
13172 14950
13927 15590
13102 14877
14004 15574
14391 15940
14074 15678
14361 15888
13567 15246
DEC-91 15240 16989
15364 16673
15498 16886
14748 16555
14623 17037
14950 17129
14528 16881
15189 17561
14701 17206
15080 17404
15364 17467
16107 18056
DEC-92 16165 18292
16578 18426
16737 18674
16997 19076
16827 18609
17355 19111
17364 19174
17426 19084
18084 19811
18031 19664
18235 20064
18100 19875
DEC-93 18332 20119
19084 20793
18539 20232
17424 19352
17644 19604
17699 19923
17123 19431
17841 20074
18560 20891
18237 20388
18392 20855
17588 20089
DEC-94 17560 20382
17662 20912
18271 21724
18625 22367
18639 23018
19083 23927
19603 24489
20289 25305
20294 25373
21309 26436
21190 26344
22190 27503
DEC-95 22693 28012
23257 28964
23645 29233
23674 29514
24157 29948
24680 30720
24612 30837
23275 29474
24059 30096
25311 31791
26104 32668
27483 35138
DEC-96 26762 34442
28291 36595
28446 36880
27334 35364
28677 37475
30299 39758
31611 41539
34437 44845
33032 42334
34901 44654
33295 43162
34067 45161
DEC-97 34746 45938
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since
Periods Ending December 31, 1997 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
<S> <C> <C> <C> <C> <C> <C> <C>
S&P 500 Index* 33.38% 20.22% 18.04% 15.37% 151.13% 424.98% 359.38%
Quantitative Equity Trust (at net asset
value) 29.83% 16.54% 15.12% 12.38% 114.95% 308.71% 247.46%
</TABLE>
*All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: For the year, the Quantitative Equity Trust returned 29.8%, better
than the 27.8% return posted by the average Morningstar Large Cap Blend fund but
less than the S&P 500 which posted an outstanding return of 33.4%
ENVIRONMENT: Over the course of the year, the largest cap (megacap) stocks
outperformed the rest of the market. At the start of 1997, investors believed
that the market was headed lower which prompted funds to flow into the safety of
the largest cap stocks. At the end of 1997, the Asian crisis accelerated this
trend based on investor desire for safety and liquidity.
On a relative basis the Trust's performance was held back by our 15% allocation
to more mid-sized, growth-oriented companies. Performance was also reduced by
the Trust's equal weighting of its holdings which results in an underweight
position relative to the index of megacap stocks. This past year represented the
third consecutive year and the only consecutive three year period since 1958 in
which a market-weighted S&P 500 outperformed an equal-weighted version of the
index. Truly a remarkable, rare year for the S&P 500.
OUTLOOK: Our portfolio will maintain its weighting of 30% in high dividend
paying stocks and 70% in growth momentum stocks. The high dividend yielding
stocks offer some protection in the event of a market correction while the
growth momentum stocks do well in rising markets. Our quantitative research
based on historical data strongly supports a combination of high yield stocks
and earnings momentum stocks as a portfolio structure that provides superior
risk-adjusted returns over the long-term.
xvi
<PAGE> 17
EQUITY INDEX TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To achieve investment results which approximate the total
return of publicly traded common stocks in the aggregate as
represented by the Standard & Poor's 500 Composite Stock
Price Index.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Les Grober, Brett Hryb
INCEPTION DATE: February 14, 1996
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) EQUITY INDEX TRUST S&P 500 INDEX
--------------------- ------------------ -------------
<S> <C> <C>
JAN-96 10000 10000
9740 10093
MAR-96 9895 10190
10038 10340
10283 10606
JUN-96 10369 10647
9888 10176
10069 10391
SEP-96 10633 10976
10951 11279
11749 12132
DEC-96 11486 11891
12206 12635
12303 12733
MAR-97 11733 12210
12475 12939
13281 13727
JUN-97 13807 14342
14946 15483
14130 14616
SEP-97 14871 15417
14441 14902
15054 15592
DEC-97 15337 15860
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1997 1 Year Inception Inception
<S> <C> <C> <C>
S&P 500 Index* 33.38% 27.21% 58.60%
Equity Index Trust (at net asset value) 33.53% 25.56% 53.37%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGERS' COMMENTARY
The Equity Index Trust returned 33.5% for 1997 as compared with a total return
of 33.4% for the S&P 500 over the same period.
xvii
<PAGE> 18
BLUE CHIP GROWTH TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To achieve long-term growth of capital (current income is a
secondary objective) and many of the stocks in the portfolio
are expected to pay dividends.
SUBADVISER: T. Rowe Price Associates, Inc.
PORTFOLIO MANAGERS: Larry J. Puglia, Brian W.H. Berghuis, Thomas H. Broadus,
Jr., Robert W. Smith, Thomas J. Huber, William J. Strombeg
INCEPTION DATE: December 11, 1992*
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) BLUE CHIP GROWTH TRUST S&P 500 INDEX
- --------------------- ---------------------- -------------
<S> <C> <C>
10000 10000
DEC-92 9930 10000
9930 10073
9530 10209
9590 10428
8832 10173
9112 10448
9052 10482
8782 10433
9102 10830
9102 10750
9332 10968
9393 10865
DEC-93 9553 10999
9663 11367
9473 11061
8962 10579
9114 10717
9064 10892
8702 10623
8933 10974
9476 11421
9275 11146
9365 11401
9164 10982
DEC-94 9094 11143
9305 11432
9506 11876
9787 12228
9922 12583
10235 13080
10659 13388
11103 13834
11093 13871
11416 14452
11244 14402
11577 15035
DEC-95 11507 15313
11890 15834
12173 15981
12264 16135
12756 16372
13252 16794
13120 16858
12260 16113
12725 16453
13728 17379
13677 17859
14689 19209
DEC-96 14487 18829
15094 20006
15115 20162
14426 19333
15067 20487
15937 21735
16599 22709
17850 24516
17040 23143
17862 24412
17445 23596
17984 24689
DEC-97 18389 25113
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total
Since Since* Return Since
Periods Ending December 31, 1997 1 Year 5 Years Inception Oct 1, 1996 5 Years Inception
<S> <C> <C> <C> <C> <C> <C>
S&P 500 Index** 33.38% 20.22% 20.22% 34.24% 151.13% 151.13%
Blue Chip Growth Trust (at net asset value) 26.94% 13.12% 12.81% 26.81% 85.19% 83.89%
</TABLE>
* Current subadviser assignment became effective 10/1/96.
** All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: For the year, the Blue Chip Growth Trust returned 26.9%, somewhat
better than the returns from the average Morningstar Large Cap Growth Fund but
trailing the S&P 500. Overall, the Blue Chip Growth Trust continues to perform
reasonably well. For the six months ending December 3l, the Trust outperformed
the Lipper VA Underlying Growth Funds Average and Standard & Poor's 500 Stock
Index.
ENVIRONMENT: The US stock market again surprised many investors with its
consistent strength. Mounting problems in several Asian economies have caused
investors to begin to question the underpinnings of the long economic expansion
in the US and many of our trading partners. While the severity and the ultimate
effect of the problems in Asia should not be underestimated, the environment for
US equities continues to be favorable. Inflation and interest rate data, mutual
fund inflows, and corporate earnings are also positive.
Financial stocks performed well as interest rates moderated and investors
continue to focus on companies with consistent earnings growth and strong
capital generation (funding significant share repurchase). Consumer product,
consumer services and retailing stocks continued to play a key role in the
Trust's performance. Pharmaceuticals and media giants stocks have been the
standouts. Although the Blue Chip Growth Trust has less exposure to the
technology sector than the average growth fund, in general, our technology
holdings performed quite well for 1997. COMPAQ Computer, Cisco Systems, BMC
Software, and IBM were all performers, despite their market retreat later in the
year.
OUTLOOK: Stock valuations remain expensive by all conventional valuation
measures, particularly as evidenced by the historically low dividend yield on
the S&P 500. We are also cautious because the market has generated strong
results for several consecutive years, and the problems in Asia certainly have
the potential to hurt earnings growth for certain multinational companies. We
believe we can enhance returns and lower risk over time by investing in "all
season" growth companies (those that can generate earnings growth regardless of
the economic or interest rate environment), while striving to invest at
reasonable valuations. As always, we strive to seek out blue chip companies with
leading market positions, seasoned management, and strong financial fundamentals
as we continue to believe they will provide superior investment results.
xviii
<PAGE> 19
REAL ESTATE SECURITIES TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To achieve a combination of long-term capital appreciation
and satisfactory current income by investing in real estate
related equity and debt securities.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Mark Schmeer, Les Grober
INCEPTION DATE: April 30, 1987
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD REAL ESTATE SECURITIES MORGAN STANLEY REIT
(FISCAL YEAR COVERED) TRUST INDEX NAREIT INDEX
--------------------- ----- ----- ------------
<S> <C> <C> <C>
10000 10000
DECEMBER|1987 9158 8707
9694 9888
DECEMBER|1988 10231 9695
10704 10055
DECEMBER|1989 11176 9520
10923 8930
DECEMBER|1990 10670 7868
12862 9864
DECEMBER|1991 15054 10676
16657 11018
DECEMBER|1992 18260 11976
20325 13865
DECEMBER|1993 22389 14197
22079 14724
DECEMBER|1994 21770 21770 14311
23418 22611 15424
DECEMBER|1995 25066 24579 16931
26577 26198 18139
DECEMBER|1996 33761 33402 22984
35514 35126 24357
DECEMBER|1997 39975 39606 27322
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since
Periods Ending December 31, 1997 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
<S> <C> <C> <C> <C> <C> <C> <C>
Morgan Stanley REIT Index+* 18.57% n/a n/a 22.03% n/a n/a 81.93%
NAREIT Index* 18.87% 17.93% 12.12% 9.88% 128.15% 213.80% 173.22%
Real Estate Securities Trust (at
net asset value) 18.41% 15.97% 15.88% 13.87% 118.93% 336.51% 299.75%
</TABLE>
+ The Morgan Stanley REIT Index commenced on December 30, 1994, therefore the 5
year return period is not applicable for this index.
* The cumulative since inception return for the Morgan Stanley REIT Index is for
the period December 30, 1994 to December 31, 1997
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: For the year, the Real Estate Securities Trust rose 18.4% lagging
the 18.9% returns of the NAREIT Index and the 22.0% returns of the average
Morningstar Specialty Real Estate fund. However, unlike many of its peers in the
Lipper universe that allow real estate stocks, this trust is a pure REIT fund
which, in our view, has similar or better long-term investment characteristics
particularly as it relates to a long-term asset diversification vehicle for
client accounts.
ENVIRONMENT: The year started off slowly for REIT investors as the market
digested the tremendous gains that were produced in 1996. While returns for the
first half of the year were less than the broader market, the general perception
was that REIT prices had bottomed and were headed higher. This was confirmed by
a firmer bond market which took the yield on the 10 year Treasury Bond down from
7.0% to 6.4% by mid-June.
REITs outperformed the S&P 500 Index by over 300 basis points in the second half
of the year. The relative outperformance came largely in the third quarter as
REIT prices advanced 11.7%. A number of large merger and acquisition
announcements helped kickstart the rally. Throughout the year, REIT earnings
remained strong and well ahead of expectations. Through the first nine months of
the year, REIT earnings grew in excess of 12.0%, a full 3% greater than
anticipated by analysts at the beginning of the year. Yet despite these rather
impressive earnings results, new supply in the form of initial public offerings
and follow-on offerings held back REIT performance in 1997. During the year,
office and hotel REITs were the only two sectors to come close to last year's
stellar performance, returning 22% and 32% respectively. All of the other
property sectors underperformed the REIT Index with self storage, shopping mall
and factory outlet REITs faring particularly poorly.
As of year end, the Trust's characteristics continue to be superior to that of
the market. Earnings growth, earnings revisions and relative price strength
remain greater than the benchmark average. The Trust's valuation characteristics
are superior to the benchmark, and the dividend yield, now at 6.2%, is higher
than the benchmark. Cash levels at the end of the year stood at less than 1% of
the portfolio.
xix
<PAGE> 20
VALUE TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to realize an above-average total return over a market
cycle of three to five years, consistent with reasonable
risk, by investing primarily in common and preferred stocks,
convertible securities, rights and warrants to purchase
common stocks, ADRs and other equity securities of companies
with equity capitalizations usually greater than $300
million.
SUBADVISER: Miller Anderson & Sherrerd, LLP
PORTFOLIO MANAGERS: Robert J. Marcin, Richard M. Behler
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) VALUE TRUST S&P 500 INDEX
--------------------- ----------- -------------
<S> <C> <C>
DEC-96 10000 10000
JAN-97 10328 10625
FEB-97 10464 10708
MAR-97 10144 10268
APR-97 10536 10881
MAY-97 11168 11543
JUN-97 11576 12061
JUL-97 12232 13021
AUG-97 12120 12291
SEP-97 12480 12965
OCT-97 11904 12532
NOV-97 12120 13112
DEC-97 12214 13338
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
S&P 500 Index* 33.38%
Value Trust (at net asset value) 22.14%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: The fourth quarter of 1997 was a difficult one for the Value Trust
with a total return of -2.2% versus 2.9% for the S&P 500. This single quarter's
variance produced the bulk of the year's underperformance. For the year, the
Value Trust rose 22.1% versus a 34.5% return for the S&P Mid Cap Value and 26.8%
returns for the average Morningstar Mid Cap Value fund.
ENVIRONMENT: Both sector allocation and stock selection contributed to the
performance shortfall. Significant underweightings in traditionally defensive
sectors of the stock market such as health care, beverages and personal care
products, telephone and consumer services, penalized relative returns while
fears of a global economic crisis in Asian financial markets generated strong
interest in defensive stocks and an equally strong aversion to our holdings of
economically sensitive sectors of the market. An increasingly expensive equity
market supported our case for a cash position in the midpoint of our 0-20% range
which impacted relative performance.
Our current portfolio characteristics reflect the commitment to value investing
in low price/earnings ratio stocks. Our projected P/E ratio for the next 12
months is 12.5 versus 18.1 for the S&P 500. Our price to sales ratio is 76%
against 151% for the index. Price/cash flow and price/ book value ratios are
also at significant discounts to the market. Growth has generally now become too
expensive for us to own and still adhere to our valuation restrictions.
OUTLOOK: We had thought that 1997 might well be the year when the market would
rectify the valuation imbalances in nonmegacap stocks. We remain cautious in
1998. The market in general appears quite pricey, but valuations in our low P/E
universe appear quite reasonable. Our portfolio includes many high quality
industrial franchises selling for less than 10 times 1998 estimated earnings. On
either a relative or absolute basis these valuations are cheap, and valuation
divergences between many economically sensitive companies and the broad market
have never been wider. The stock market may continue for some time to ignore the
type of businesses that dominate our portfolio, but in the long run we believe
that our commitment to value will reward our patience handsomely.
xx
<PAGE> 21
INTERNATIONAL GROWTH AND INCOME TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek long term growth of capital and income by investing,
under normal circumstances, at least 65% of its total assets
in equity securities of foreign issuers. The portfolio may
also invest in debt securities of corporate or sovereign
issuers rated A or higher by Moody's or S&P or, if unrated,
of equivalent credit quality as determined by J.P. Morgan.
Under normal circumstances, the portfolio will be invested
approximately 85% in equity securities and 15% in fixed
income securities.
SUBADVISER: J.P. Morgan Investment Management, Inc.
PORTFOLIO MANAGERS: Paul A. Quinsee, Dr. Massimo Fuggetta
INCEPTION DATE: January 9, 1995
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD INTERNATIONAL GROWTH CUSTOMIZED 85%/15% COMPOSITE
(FISCAL YEAR COVERED) AND INCOME TRUST BENCHMARK INDEX
- --------------------- ---------------- --------- -----
<S> <C> <C> <C>
DEC-94 10000 10000 10000
9820 9706 9706
9620 9735 9735
MAR-95 10060 10409 10409
10390 10773 10773
10190 10695 10695
JUN-95 10010 10543 10543
10480 11095 11095
10200 10628 10628
SEP-95 10270 10850 10850
10080 10598 10598
10280 10860 10860
DEC-95 10698 11238 11238
10810 11230 11230
10790 11263 11263
MAR-96 10984 11440 11440
11187 11638 11638
11177 11546 11546
JUN-96 11320 11609 11609
11054 11411 11411
11167 11544 11544
SEP-96 11453 11783 11783
11545 11828 11828
11955 12281 12281
DEC-96 12047 12220 12220
11791 11867 11867
11883 12051 12020
MAR-97 11976 12070 12071
11983 12093 12070
12485 12753 12768
JUN-97 12912 13366 13366
13054 13580 13567
12278 12696 12726
SEP-97 12715 13382 13446
11993 12453 12625
11829 12312 12500
DEC-97 12037 12423 12500
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1997 1 Year Inception Inception
<S> <C> <C> <C>
Customized Benchmark*+ 1.66% 7.50% 24.23%
85%/15% Composite Index*++ 2.30% 7.72% 25.00%
International Growth and Income Trust (at net asset value) -0.08% 6.43% 20.37%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
+ Comprised of 75% of the return of the MSCI EAFE Index, 15% of the return of
the Salomon Brothers Non-$ WGBI 10 Index, and 10% of return of the MSCI
Emerging Markets Free ex Malaysia Index. In February of 1997, the 85%/15%
Composite Index was adjusted to reflect the addition of the MSCI Emerging
Markets Free ex Malaysia Index. This change was made to more accurately
reflect the investment objective of the International Growth and Income Fund.
++ Comprised of 85% of the return of the MSCI EAFE Index and 15% of the return
of the Salomon Brothers Non-$ WGBI 10 Index.
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: For the year, the International Growth & Income Trust had a return
of -0.08% lagging both the 4.8% return for the average Morningstar Foreign fund
and the 2.1% return of the MSCI EAFE Index of international stocks.
ENVIRONMENT: 1997 was a particularly challenging year for international managers
as returns from the world's major equity markets diverged widely. European
stocks surged, helped by falling long term interest rates and continued optimism
over the prospects for corporate profits as a result in part, of the
strengthening US dollar. Over the year, the Italian, German and Swiss markets
showed the strongest returns gaining 33.6%, 23.3% and 43.2% respectively.
However, Asian equity markets continued to struggle. In Japan, stocks suffered a
- -24.2% decline in 1997 with a string of disappointing economic statistics
emphasizing the poor outlook for corporate profits.
Country allocation decisions in the trust contributed positively throughout most
of the year. Overweight positions in Germany and France both proved beneficial
while underweighting Japan and Malaysia contributed favorably to performance.
However, the decision to underweight the very strong Swedish market that was up
11.6% for the year suppressed performance. During the year, stock selection in
the German auto sector had a notable impact. The French media sector and banking
sector also contributed positively.
On the currency side, the US dollar continued to strengthen against both the
Japanese Yen and major European currencies, as a robust US economy led to an
increase in both short and long term rates thus making the US currency
relatively more attractive to investors. The Trust's decision to partially hedge
its yen exposure back in the US dollar also enhanced performance in 1997.
xxi
<PAGE> 22
GROWTH AND INCOME TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek long-term growth of capital and income, consistent
with prudent investment risk, by investing primarily in a
diversified portfolio of common stocks of United States
issuers which the subadviser believes are of high quality.
SUBADVISER: Wellington Management Company, LLP
PORTFOLIO MANAGER: Matthew E. Megargel
INCEPTION DATE: April 23, 1991
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) GROWTH AND INCOME TRUST S&P 500 INDEX
- --------------------- ----------------------- -------------
<S> <C> <C>
10000 10000
9940 10000
10270 10428
9950 9951
10330 10417
10570 10662
10380 10487
10530 10628
10040 10198
DEC-91 11080 11364
10810 11153
10980 11295
10740 11074
10921 11396
10982 11458
10921 11292
11376 11747
11305 11509
11588 11642
11668 11684
11981 12077
DEC-92 12213 12236
12375 12325
12435 12491
12829 12760
12567 12447
12814 12783
12844 12826
12793 12765
13204 13252
13162 13154
13388 13421
13121 13294
DEC-93 13388 13458
13850 13909
13706 13533
13193 12945
13337 13113
13569 13327
13252 12997
13812 13428
14224 13974
13960 13637
14171 13950
13527 13438
DEC-94 13770 13634
13780 13988
14340 14531
14678 14961
15150 15397
15639 16005
15965 16381
16421 16926
16562 16972
17073 17683
16812 17621
17497 18397
DEC-95 17790 18737
18214 19374
18258 19554
18573 19742
18853 20032
19305 20549
19327 20627
18628 19715
19034 20131
20139 21265
20691 21852
22259 23504
DEC-96 21853 23038
23037 24478
23296 24669
22394 23655
23669 25067
25042 26594
26476 27785
28529 29997
26998 29317
28407 29869
27423 28871
28669 30208
DEC-97 29027 30728
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since
Periods Ending December 31, 1997 1 Year 5 Years Inception 5 Years Inception
<S> <C> <C> <C> <C> <C>
S&P 500 Index* 33.38% 20.22% 18.34% 151.13% 207.28%
Growth and Income Trust (at net asset value) 32.83% 18.90% 17.27% 137.67% 190.27%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Growth & Income Trust returned 32.8%, well ahead
of the 27.8% returns for the average Morningstar Large Cap Blend fund. The
Trust's performance was basically in line with the S&P 500 which registered a
robust total return of 33.4% for 1997, completing its third year in a row of
+20% gains!
ENVIRONMENT: Stocks continued to benefit from falling interest rates, positive
earnings growth, and a benign inflation environment. The market ended below its
mid-year high, however, due to growing investor concerns about stock valuation,
the Asian turmoil and slowing EPS growth. Strong industry groups for the year
included retail, media, financial services, energy services, and major
pharmaceuticals. Weak groups for the twelve months included electronics,
communications equipment, and materials. The portfolio was generally helped by
positions in financial services, major pharmaceuticals, energy services, and
retail. Positions in selected technology sectors and an underweighted bank
weighting detracted from returns.
OUTLOOK: Looking forward, decelerating earnings growth in 1998 may pose a
challenge to equity investors. We anticipate the financial and economic turmoil
in Asia will slow corporate profit growth here in the US, thereby removing an
important engine for positive stock price movement. Overall, we have cut our
profit growth estimates from 10% to 2% for 1998. One offsetting factor for
stocks, however, will be lower inflation and interest rates which tend to lead
to higher P/E valuations. We believe those companies able to continue to deliver
earnings growth may achieve even higher relative valuations in this
disinflationary environment.
xxii
<PAGE> 23
EQUITY-INCOME TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to provide substantial dividend income and also
long-term capital appreciation by investing primarily in
dividend-paying common stocks, particularly of established
companies with favorable prospects for both increasing
dividends and capital appreciation.
SUBADVISER: T. Rowe Price Associates, Inc.
PORTFOLIO MANAGERS: Brian C. Rogers, Stephen W. Boesel, Richard P. Howard,
William J. Stromberg, Michael F. Sola
INCEPTION DATE: February 19, 1993*
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
<TABLE>
<S> <C>
10000 10000
10170 10000
10520 10215
10180 9965
10470 10234
10560 10288
10720 10219
10760 10609
10820 10830
10930 10744
10970 10643
11310 10774
11530 11135
11710 10834
11380 10383
11399 10498
11490 10669
11329 10405
11490 10750
12003 11187
11933 10917
11721 11167
11188 10758
11399 10915
11329 11195
12073 11633
12335 11977
12517 12326
12875 12813
13283 13114
13681 13550
13824 13587
13855 14156
13385 14107
13926 14728
14100 15000
14437 15510
14723 15654
14896 15805
15255 18037
15573 16451
15233 16513
14695 16783
15145 16116
15902 17024
16066 17493
17020 18816
18900 18443
17382 19596
17832 19749
17437 18937
17902 20068
18766 21290
19491 22244
20648 24014
20078 22670
21055 23912
20496 23113
21284 24183
21920 24599
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since* Since
Periods Ending December 31, 1997 1 Year Inception Oct. 1, 1996 Inception
<S> <C> <C> <C> <C>
S&P 500 Index** 33.38% 20.47% 34.24% 145.99%
Equity-Income Trust (at net asset value) 29.71% 17.50% 29.13% 119.20%
</TABLE>
* Current subadviser assignment became effective 10/1/96.
** All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: For the 12 months ending December 31, 1997, the Equity-Income Trust
rose 29.7% exceeding the 26.7% returns produced by the average Morningstar Large
Cap Value fund. Performance was in line with the Lipper Variable Annuity
Underlying Equity Income Funds Average, which returned 29.13%, and in line with
the S&P Barra 500 Value Index which had a total return of 30.0%.
ENVIRONMENT: The equity market performed well in 1997 as good corporate earnings
results, continued low inflation, and a supportive interest rate environment
provided ample ammunition to fuel the advance. The performance of stocks in the
second half was particularly impressive in light of the market's October jitters
and concern over the volatility of the Asian markets. Equity returns were
notably impressive coming on the heels of considerable market strength in 1995
and 1996. The 1995-1997 period, in fact, is the first time in modern history
that stock market returns have exceeded 20% in three consecutive years.
Electric utility and telephone company stocks performed well in the last six
months after a lengthy period of underperformance. Strong price appreciation in
stocks such as Bell Atlantic, BellSouth, BGE, and Unicom helped the Trust's
return in the latter part of the year.
OUTLOOK: The equity market has provided investors with three unprecedented years
of prosperity, and the investment environment has been exceptionally conducive
to good returns. As prices have advanced, the market's valuation appeal and
likely near-term upside potential have diminished. The volatility we experienced
in the opening weeks of 1998, due in part to the turmoil in Asia, is a reminder
that investing entails risks that sometimes get in the way of positive returns.
While our emphasis is solely on uncovering interesting investment values, we
believe it is prudent to have more modest expectations for equity market
performance in the year ahead.
xxiii
<PAGE> 24
BALANCED TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks current income and capital appreciation by investing
in a balanced portfolio of common stocks, U.S. and foreign
government obligations and a variety of corporate
fixed-income securities.
SUBADVISER: Founders Asset Management, Inc.
PORTFOLIO MANAGER: Brian F. Kelly
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS
MEASUREMENT PERIOD AGGREGATE BOND 50%/50%
(FISCAL YEAR COVERED) BALANCED TRUST S&P 500 INDEX INDEX COMPOSITE INDEX
- --------------------- -------------- ------------- ----- ---------------
<S> <C> <C> <C> <C>
DEC-96 10000 10000 10000 10000
10311 10625 10031 10328
10299 10708 10056 10381
MAR-97 10134 10268 9944 10110
10451 10881 10094 10488
10835 11543 10190 10857
JUN-97 11170 12081 10311 11165
11499 13021 10589 11760
11140 12291 10499 11381
SEP-97 11584 12965 10655 11777
11493 12532 10809 11665
11633 13112 10859 11962
DEC-97 11779 13338 10968 12126
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
S&P 500 Index* 33.38%
Lehman Brothers Aggregate Bond Index* 9.68%
50%/50% Composite Index*+ 21.26%
Balanced Trust (at net asset value) 17.79%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
+ Comprised of 50% of the return of the S&P 500 Index and 50% of the return of
the Lehman Brothers Aggregate Bond Index.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Balanced Trust returned 18.5%, slightly ahead of
the 18.2% returns posted by the average manager in Morningstar's domestic hybrid
(balanced) category and lagging the 23.2% returns from a 60% S&P 500, 40% Lehman
Brothers Aggregate Bond mix.
ENVIRONMENT: Investors seem to be seeking conservatively positioned portfolios
as a by-product of the domestic market volatility and the currency crisis in
Southeast Asia. At the same time, there are some indications that the domestic
economy may be slowing, as evidenced by the number of companies revising their
earnings estimates downward. The recent low inflation figures and low bond rates
have raised some concern about the possibility of deflation. We believe
large-cap stocks in particular offer strong earnings potential and liquidity
going forward.
The Balanced Trust is conservatively invested with 59% of the portfolio in
large-cap equities, and the balance in US Treasuries. Approximately 4.5% of the
Trust is in cash. We maintain a flexible portfolio of equity and fixed income
holdings that seek to provide investors with both current income and capital
appreciation. The portfolio can be shifted on economic signals.
On the equity side our holdings are well-known growth companies in the chemical,
beverage and forest products area. Our biggest international holding is in
pharmaceuticals which we believe are poised for solid growth in earnings and
will benefit from the aging population. We also maintain positions in the
telecommunications sector where our regional Bell operating company which pays a
dividend of 4.5% -- the highest of any Baby Bell -- is also well situated to
capitalize on growth in its 14 state geographic region.
OUTLOOK: Our outlook for the near term is cautious as portrayed by the Trust's
conservative posture. Although the Southeast Asian crisis has boosted the
popularity of large-cap stocks, we are monitoring the situation carefully.
Valuations seem to be at the upper end of their range and we are looking for
appropriate buying opportunities within our guidelines.
xxiv
<PAGE> 25
AGGRESSIVE ASSET ALLOCATION TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek the highest total return consistent with an
aggressive level of risk tolerance. The Trust attempts to
limit the decline in portfolio value in very adverse market
conditions to 15% over any three year period.
SUBADVISER: Fidelity Management Trust Company
PORTFOLIO MANAGER: Scott D. Stewart
INCEPTION DATE: August 3, 1989*
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
AGGRESSIVE ASSET WILSHIRE MSCI EAFE CUSTOMIZED
ALLOCATION TRUST 5000 INDEX INDEX BENCHMARK
- ---------------- ---------- ----- ---------
<S> <C> <C> <C>
10000 10000 10000 10000
10340 10227 9552 10179
10180 10210 9989 10229
9760 9911 9589 10184
9810 10085 10074 10434
9880 10270 10448 10697
9210 9516 10061 10196
9370 9667 9381 10306
9530 9909 8388 10510
9313 9623 8323 10291
9916 10502 9276 11120
9837 10451 9196 11106
9686 10350 9328 11118
8908 9376 8425 10328
8538 8881 7263 9986
8455 8742 8386 9972
8839 9338 7894 10507
9181 9835 8025 10764
9525 10103 8288 11155
10029 10889 9177 11777
10201 11221 8828 12008
10319 11288 8715 12065
10571 11707 8809 12470
10288 11185 8164 12041
10592 11710 8587 12508
10887 12033 8395 12794
10813 11895 8871 12701
10981 12114 8999 12864
10498 11651 8581 12504
11265 12930 9027 13669
11107 12905 8837 13428
11244 13082 8523 13578
11034 12758 7963 13359
11326 12929 8002 13673
11446 13008 8541 13787
11381 12743 8139 13684
11835 13259 7933 14190
11684 12978 8433 14004
11835 13133 8269 14175
11803 13293 7536 14158
12095 13844 7914 14517
12193 14080 7957 14712
12290 14263 7959 14876
12442 14322 8201 15093
12637 14690 8918 15348
12498 14264 9768 15096
12689 14732 9976 15404
12833 14800 9823 15508
12822 14798 10169 15483
13213 15389 10720 15991
13180 15399 10481 15909
13348 16856 10807 18171
13269 15402 9864 16021
13448 15680 10579 16188
13884 16173 11475 16858
13571 15810 11448 16244
13068 15095 10956 15812
13200 15240 11423 15731
13356 15389 11360 15924
13081 14977 11523 15623
13451 15422 11835 18088
13782 16103 11914 16488
13475 15791 11541 16188
13654 16049 11928 16418
13248 15461 11358 16998
13385 15889 11432 16138
13320 16008 10995 16259
13619 16646 10966 18848
13965 17084 11854 17085
14304 17509 12095 17471
14649 18106 11954 17873
14879 18683 11747 18120
15415 19452 12482 18718
15453 19641 12009 18712
15785 20391 12246 19178
15619 20186 11920 19038
16078 21041 12255 19592
16397 21385 12752 19976
16691 21958 12807 20300
16780 22343 12853 20440
16557 22586 13129 20616
17027 23144 13614 20970
17208 23776 13268 21180
17281 23581 13346 21182
16778 22307 12959 20545
16955 23021 12990 20558
17647 24246 13339 21623
17909 24586 13203 21522
18680 26213 13728 22780
18528 25917 13551 22591
18914 27303 13077 23040
18955 27290 13291 23153
18501 26084 13339 22537
19024 27221 13410 23343
20053 29148 14283 24711
20745 30488 15070 25712
21597 32830 16314 27162
21037 31596 14170 28184
22189 33460 14963 27478
21487 32346 13813 26609
21959 33404 13672 27171
22066 34021 13791 27578
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since* Since
Periods Ending December 31, 1997 1 Year 5 Years Inception Dec 13, 1991 5 Years Inception
<S> <C> <C> <C> <C> <C> <C>
Wilshire 5000 Index** 31.27% 19.28% 15.66% 19.26% 141.46% 240.21%
MSCI EAFE Index** 1.77% 11.63% 4.43% 9.78% 73.31% 37.91%
Customized Benchmark**+ 22.08% 13.39% 12.81% 13.89% 87.45% 175.78%
Aggressive Asset Allocation Trust (at net
asset value) 19.09% 12.60% 9.87% 12.79% 80.98% 120.66%
</TABLE>
* Current subadviser assignment became effective 12/13/91.
** All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
+ Customized Benchmark is comprised of 47.5% of the return of the Wilshire
5000, 20% of the MSCI EAFE Index, 15% of the return of the Lehman Brothers
Aggregate Bond Index, 10% of the return of the 90 Day T-Bill, and 7.5% of the
return of the Merrill Lynch High Yield Index.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Aggressive Asset Allocation Trust was up 19.1%
well ahead of the 16.6% average return among asset allocation peers in the
Morningstar mutual fund universe but trailing the conventional 60% stock, 40%
bond mix that was up 23.17%, owing to the outstanding performance of a small
number of US large cap stocks.
ENVIRONMENT: US equity markets experienced another strong year, the third in a
row. The Wilshire 5000 Index returned 31.3% for the year. However, the
performance of different sectors within the market differed greatly. US large
cap stocks (S&P 500), supported by strong earnings growth and low inflation
returned 33.4% while smaller cap names trailed far behind with the Russell 2000
rising 22.4%.
International markets were quite another story. The Asian currency crisis which
started in Thailand in late summer soon spread over the entire east Asia region.
It caused a severe credit crunch in the region and equity markets crashed as a
result. For example, the Indonesian market in US Dollar terms dropped more than
80% of its value. On the other hand, the European market did much better. This
is further proof of the importance of diversification and risk control
principles at work in the asset allocation funds.
US inflation hit a 20-year low in 1997. The yield on 30-year treasury bonds
dropped below the psychologically important 6% level to as low as 5.70% in late
1997. Given the strong economy it is an astounding achievement.
OUTLOOK: Looking forward, we expect to see stable and low inflation and slower
earnings growth, but the US economy should remain fundamentally healthy.
xxv
<PAGE> 26
MODERATE ASSET ALLOCATION TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek the highest total return consistent with a moderate
level of risk tolerance. This Trust attempts to limit the
decline in portfolio value in very adverse market conditions
to 10% over any three year period.
SUBADVISER: Fidelity Management Trust Company
PORTFOLIO MANAGER: Scott D. Stewart
INCEPTION DATE: August 3, 1989*
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS
MODERATE ASSET WILSHIRE AGGREGATE BOND CUSTOMIZED
ALLOCATION TRUST 5000 INDEX INDEX BENCHMARK
- ---------------- ---------- ----- ---------
<S> <C> <C> <C>
10000 10000 10000 10000
10210 10227 9352 10094
10120 10210 9902 10166
9910 9911 10148 10243
9970 10086 10242 10488
10030 10270 10270 10675
9450 9516 10148 10324
9570 9667 10180 10407
9570 9909 10157 10548
9365 9823 10094 10359
9561 10502 10392 11028
9851 10451 10560 11078
9770 10350 10705 11137
9142 9376 10562 10680
8839 8861 10650 10344
8758 8742 10785 10390
9112 9338 11017 10836
9405 9635 11189 11069
9719 10103 11327 11383
10155 10889 11424 11839
10286 11221 11502 12020
10392 11256 11627 12102
10551 11707 11694 12396
10317 11165 11888 12110
10594 11710 11851 12477
10871 12033 12107 12759
10871 11895 12352 12784
11051 12114 12490 12940
10828 11651 12604 12738
11402 12930 12979 13655
11276 12908 12802 13431
11392 13082 12885 13554
11222 12758 12813 13383
11439 12929 12908 13616
11595 13008 13149 13775
11617 12743 13331 13774
12027 13259 13603 14231
11950 12978 13740 14148
12104 13133 13904 14328
12038 13293 13719 14244
12237 13844 13722 14480
12348 14090 13940 14694
12492 14263 14207 14897
12670 14322 14456 15130
12825 14690 14517 15320
12746 14284 14818 15158
12855 14732 14637 15401
13047 14800 14902 15563
13070 14798 14987 15575
13417 15369 15250 16007
13408 15399 15291 15967
13544 18656 15347 16161
13440 15402 16217 16016
13590 15680 15299 16157
13937 16173 15508 16540
13648 15810 15238 16171
13209 15095 14659 15620
13248 15240 14741 15857
13347 15389 14739 15784
13149 14977 14707 15872
13483 15422 14999 15984
13681 16103 15017 16254
13421 15791 14797 15951
13658 18049 14783 16139
13273 15461 14751 15837
13372 15669 14853 15973
13421 16008 15147 18135
13694 16646 15507 16501
13967 17084 15602 16839
14261 17509 15820 17172
14639 18108 15432 17624
14834 18883 16552 17848
15147 19452 16515 18203
15238 19641 16716 18298
15499 20391 16875 18653
15473 20186 17097 18656
15837 21041 17354 19100
16137 21385 17597 19418
16397 21958 17716 19678
16371 22343 17408 19670
16354 22588 17288 19731
16438 23144 17189 19912
16551 23776 17155 20056
16651 23581 17385 20138
16381 22307 17432 17757
16523 23021 17402 19959
17034 24246 17705 20668
17318 24588 18098 20848
17901 26213 18408 21553
17745 25917 18236 21397
18029 27303 18293 21744
18071 27290 18339 21831
17702 26084 18135 21420
18148 27221 18407 21973
18862 29148 18582 22920
19386 30486 18803 23635
20243 32830 18311 24734
19658 31596 19147 24074
20486 33480 19430 24994
20101 32346 19712 24658
20418 33404 19602 24951
20561 34021 20002 25283
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since* Since
Periods Ending December 31, 1997 1 Year 5 Years Inception Dec 13, 1991 5 Years Inception
<S> <C> <C> <C> <C> <C> <C>
Wilshire 5000 Index** 31.27% 19.28% 15.66% 19.26% 141.46% 240.21%
Lehman Brothers Aggregate Bond Index** 9.68% 7.49% 9.80% 9.51% 43.49% 100.02%
Customized Benchmark**+ 18.16% 11.46% 11.65% 11.93% 72.06% 152.83%
Moderate Asset Allocation Trust (at net asset value) 15.87% 10.74% 8.95% 11.01% 66.51% 105.61%
</TABLE>
* Current subadviser assignment became effective 12/13/91.
** All since inception returns for the indexes begin on the month-end closest to
the actual inception date of the Trust.
+ Customized Benchmark comprised of 32.5% of the return of the Wilshire 5000,
10% of the return of the MSCI EAFE Index, 40% of the return of the Lehman
Brothers Aggregate Bond Index, 10% of the return of the 90 Day T-Bill, and
7.5% of the return of the Merrill Lynch High Yield Index.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Moderate Asset Allocation Trust was up 15.9%,
just behind the 16.6% average return among asset allocation peers in the
Morningstar mutual fund universe but trailing the conventional 60% stock, 40%
bond mix that was up 23.17% owing to the outstanding performance of a small
number of US large cap stocks.
ENVIRONMENT: US equity markets experienced another strong year, the third in a
row. The Wilshire 5000 Index returned 31.3% for the year. However, the
performance of different sectors within the market differed greatly. US large
cap stocks (S&P 500), supported by strong earnings growth and low inflation
returned 33.4% while smaller cap names trailed far behind with the Russell 2000
rising 22.4%.
International markets were quite another story. The Asian currency crisis which
started in Thailand in late summer soon spread over the entire east Asia region.
It caused a severe credit crunch in the region and equity markets crashed as a
result. For example, the Indonesian market in US Dollar terms dropped more than
80% of its value. On the other hand, the European market did much better. This
is further proof of the importance of diversification and risk control
principles at work in the asset allocation funds.
US inflation hit a 20-year low in 1997. The yield on 30-year treasury bonds
dropped below the psychologically important 6% level to as low as 5.70% in late
1997. Given the strong economy it is an astounding achievement.
OUTLOOK: Looking forward, we expect to see stable and low inflation and slower
earnings growth, but the US economy should remain fundamentally healthy.
xxvi
<PAGE> 27
CONSERVATIVE ASSET ALLOCATION TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek the highest total return consistent with a
conservative level of risk tolerance. This Trust attempts to
limit the decline in portfolio value in very adverse market
conditions to 5% over any three year period.
SUBADVISER: Fidelity Management Trust Company
PORTFOLIO MANAGER: Scott D. Stewart
INCEPTION DATE: August 3, 1989*
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS
MEASUREMENT PERIOD CONSERVATIVE ASSET AGGREGATE BOND CUSTOMIZED
(FISCAL YEAR COVERED) ALLOCATION TRUST 90 DAY T-BILL INDEX BENCHMARK
- --------------------- ---------------- ------------- ----- ---------
<S> <C> <C> <C> <C>
JUL-89 10000 10000 10000 10000
10070 10071 9852 10030
10030 10137 9902 10126
10020 10207 10146 10306
10080 10275 10242 10495
DEC. 1989 10110 10345 10270 10657
8700 10414 10148 10475
9780 10476 10180 10536
9620 10647 10187 10618
9447 10615 10094 10495
9834 10687 10382 10960
9905 10757 10560 11063
9905 10830 10705 11181
9468 10903 10582 10819
8285 10972 10650 10751
9234 11043 10755 10837
9495 11110 11017 11170
DEC. 1990 9722 11179 11189 11368
9938 11246 11327 11590
10251 11304 11424 11868
10322 11365 11502 11998
10409 11422 11827 12097
10431 11479 11694 12278
10311 11533 11888 12139
10528 11588 11851 12397
10778 11644 12107 12650
10887 11698 12352 12770
11061 11752 12490 12911
11104 11802 12604 12864
DEC. 1991 11550 11851 12979 13485
11409 11596 12802 13293
11506 11932 12885 13384
11398 11972 12813 13274
11537 12011 12906 13428
11710 12052 13149 13612
11790 12091 13331 13694
12124 12128 13603 14065
12135 12168 13740 14079
12273 12200 13904 14249
12181 12232 13719 14124
12273 12282 13722 14238
DEC. 1992 12400 12294 13940 14445
12572 12327 14207 14656
12745 12357 14456 14876
12848 12389 14517 15000
12855 12419 14618 14961
12915 12460 14637 15098
13095 12481 14902 15291
13143 12513 14987 16335
13395 12546 15280 15660
13407 12577 15291 15662
13503 12610 15347 15788
13407 12641 15217 15664
DEC. 1993 13515 12674 15299 15771
13755 12709 15506 15048
13515 12739 15238 15782
13179 12773 14859 15343
13151 12808 14741 15317
13180 12848 14739 15383
13087 12889 14707 15272
13344 12934 14999 15601
13446 12980 15017 16753
13267 13027 14797 15588
13344 13078 14783 15653
13177 13130 14751 15501
DEC. 1994 13267 13189 14853 15621
13408 13251 15147 15833
13677 13310 15507 16184
13844 13376 15602 16389
14056 13442 15820 16615
14448 13509 16432 17058
14597 13574 16552 17234
14772 13640 16516 17431
14881 13708 16718 17556
15070 13767 16876 17812
15110 13831 17097 17891
15361 13892 17354 18222
DEC. 1995 15664 13956 17597 18486
15827 14016 17718 18851
15732 14072 17408 18578
15719 14131 17288 18591
15744 14189 17189 18678
16801 14248 17155 18764
15917 14308 17385 18884
16787 14388 17432 18599
16859 14430 17402 18826
16219 14491 17705 19239
16478 14551 18098 19516
16896 14611 18408 20002
DEC. 1996 16766 14672 18236 19872
16954 14734 18293 20102
16997 14797 18339 20162
16766 14881 18135 19896
17055 14923 18407 20245
17431 14983 18582 20720
17746 15045 18803 21112
18287 15114 19311 21755
18002 15179 19147 21453
18430 18243 18430 21951
18398 15308 19712 21902
18557 16374 19802 22108
DEC. 1997 18684 15442 20002 22336
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Periods Ending December 31, 1997 1 Year 5 Years Inception Dec 13, 1991 5 Years Inception
<S> <C> <C> <C> <C> <C> <C>
Lehman Brothers Aggregate Bond Index** 9.68% 7.49% 9.80% 9.51% 43.49% 100.02%
90 Day T-Bill** 5.24% 4.66% 5.30% 4.52% 25.60% 54.42%
Customized Benchmark**+ 12.40% 9.11% 10.02% 9.49% 54.63% 123.36%
Conservative Asset Allocation Trust (at net asset
value) 11.44% 8.55% 7.72% 8.83% 50.68% 86.84%
</TABLE>
* Current subadviser assignment became effective 12/13/91.
** All since inception returns for the indexes begin on the month-end closest to
the actual inception date of the Trust.
+ Customized Benchmark is comprised of 20% of the return of the Wilshire 5000,
5% of the return of the MSCI EAFE Index, 50% of the return of the Lehman
Brothers Aggregate Bond Index, and 25% of the return of the 90 Day T-Bill.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Conservative Asset Allocation Trust was up 11.4%.
This was an exceptional year for a portfolio designed to maximize protection of
capital. Performance was well ahead of the 9.7% returns for the Lehman
Government/Corp Bond Index but behind the 16.6% average return generated by the
much more aggressively managed asset allocation peers in the Morningstar mutual
fund universe.
ENVIRONMENT: US equity markets experienced another strong year, the third in a
row. The Wilshire 5000 Index returned 31.3% for the year. However, the
performance of different sectors within the market differed greatly. US large
cap stocks (S&P 500), supported by strong earnings growth and low inflation
returned 33.4% while smaller cap names trailed far behind with the Russell 2000
rising 22.4%.
International markets were quite another story. The Asian currency crisis which
started in Thailand in late summer soon spread over the entire east Asia region.
It caused a severe credit crunch in the region and equity markets crashed as a
result. For example, the Indonesian market in US Dollar terms dropped more than
80% of its value. On the other hand, the European market did much better. This
is further proof of the importance of diversification and risk control
principles at work in the asset allocation funds.
US inflation hit a 20-year low in 1997. The yield on 30-year treasury bonds
dropped below the psychologically important 6% level to as low as 5.70% in late
1997. Given the strong economy it is an astounding achievement.
OUTLOOK: Looking forward, we expect to see stable and low inflation and slower
earnings growth, but the US economy should remain fundamentally healthy.
xxvii
<PAGE> 28
HIGH YIELD TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to realize an above-average total return over a market
cycle of three to five years, consistent with reasonable
risk, by investing primarily in high yield debt securities,
including corporate bonds and other fixed-income securities.
SUBADVISER: Miller Anderson & Sherrerd, LLP
PORTFOLIO MANAGERS: Robert E. Angevine, Thomas L. Bennett, Stephen F. Esser
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
SALOMON BROTHERS HIGH
HIGH YIELD TRUST YIELD MARKET INDEX
- ---------------- ------------------
<S> <C>
10000 10000
10058 10075
10144 10246
9904 10141
10144 10213
10392 10419
10576 10595
10944 10856
10912 10888
11136 11056
11032 11144
11138 11201
11268 11319
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
Salomon Brothers High Yield Market Index* 13.19%
High Yield Trust (at net asset value) 12.68%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: For the year, the High Yield Trust increased in value by 12.7%
basically in line with the average Morningstar High Yield fund that returned
12.8% and the Salomon Brothers High Yield Index which returned 13.2%.
ENVIRONMENT: The high yield market was supported all year by the continuing
decline in interest rates. Ten year Treasury rates declined 67 basis points and
thirty year rates declined 77 basis points from the beginning to the end of the
year. The strong stock market also supported the high yield increasing
investors' confidence that earnings will continue upwards and that companies
will have ready access to capital. Merger and acquisition activity also
continued at a high pace. Stock for stock transactions and mergers into high
grade companies effectively delivered many high yield companies and boosted bond
prices. Our heaviest portfolio weight has been the telecommunications sector, by
far the best performer during 1997 benefiting from acquisition activity and the
fact that many of the securities in the industry tend to have a high duration.
We also avoided many landmines in 1997. For example, the supermarket industry,
generally a popular one in the market, had several high profile credit problems
which we avoided.
Emerging market debt performed spectacularly and as spreads narrowed
dramatically we cut our position by approximately a third. Our timing was
fortunate in that this was accomplished shortly before the Asian crisis. The
Trust was negatively impacted by the fact that this was a start-up portfolio,
and we were unable to take full advantage of all the opportunities available in
the first quarter when the high yield market performed strongly.
OUTLOOK: We are well positioned for 1998. We currently have little exposure to
cyclical credits. We maintain a high allocation to the telecommunications sector
where fundamentals continue to appear very positive. The emerging markets sector
is where we hope for more aggressive returns, but we acknowledge the potential
risks. We attempt to mitigate this risk by investing primarily in what we
consider world class companies or those that have very strong sponsorship and in
sovereign issues where we believe there is significant value.
xxviii
<PAGE> 29
STRATEGIC BOND TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek a high level of total return consistent with
preservation of capital by giving its subadviser broad
discretion to deploy the portfolio's assets among certain
segments of the fixed-income market as the subadviser
believes will best contribute to achievement of the
portfolio's investment objective.
SUBADVISER: Salomon Brothers Asset Management Inc
PORTFOLIO MANAGERS: Peter J. Wilby, David J. Scott, Steven Guterman
INCEPTION DATE: February 19, 1993
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS AGGREGATE
STRATEGIC BOND TRUST BOND INDEX
-------------------- ----------
<S> <C>
10000 10000
10050 10042
10080 10112
10150 10125
10400 10309
10460 10367
10550 10549
10560 10577
10760 10617
10760 10526
10880 10583
11050 10726
10820 10539
10440 10279
10372 10197
10393 10196
10383 10173
10403 10376
10414 10388
10445 10236
10424 10226
10383 10204
10228 10274
10207 10478
10290 10727
10300 10792
10710 10944
11154 11387
11284 11450
11360 11425
11436 11563
11620 11675
11706 11827
11912 12004
12194 12173
12651 12265
12464 12042
12475 11958
12640 11891
12745 11887
12886 12028
12979 12059
13155 12038
13576 12247
13893 12519
13939 12733
13986 12615
14126 12654
14302 12686
14056 12545
14205 12733
14531 12854
14731 13007
15120 13358
15082 13245
15371 13441
15170 13635
15346 13698
15521 13837
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1997 1 Year Inception Inception
<S> <C> <C> <C>
Lehman Brothers Aggregate Bond Index* 9.68% 6.95% 38.37%
Strategic Bond Trust (at net asset value) 10.98% 9.46% 55.21%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGERS' COMMENTARY
PERFORMANCE: The Strategic Bond Trust returned 10.98% for 1997 versus 9.53% for
the Lipper Annuity General Bond category and 9.68% for the Lehman Brothers
Aggregate Bond Index.
ENVIRONMENT: The US economy grew moderately with low inflation and falling
interest rates. Asian economies were mired in crisis for the latter part of 1997
with currencies and stock market values plummeting. That led to an increase of
credit risk premiums globally and pressured the emerging markets and high yield
sectors for most of the fourth quarter.
High yield returned 13.19% for the year led by strong flows into mutual funds,
and solid credit fundamentals bolstered the high yield sector. Falling inflation
rates, stable currencies, stable political environments and rising foreign
domestic investment all helped to support the case for an allocation to the
emerging market sector. In spite of a crash in October, emerging market bonds
rallied to a gain of 16.85% for the year. Strong price increases in ten year and
thirty year bonds heavily influenced the mortgage backed securities (MBS) sector
which returned 9.27%, based on the Salomon MBS index. This is a stellar return
relative to other sectors of the investment grade market when adjusted for the
relatively lower interest rate sensitivity of MBS. The Trust lowered its
allocation to the high yield and emerging markets sectors as they were viewed as
fully valued, with spreads having tightened dramatically throughout the year.
The investment grade portion was raised in the third quarter. The Trust also
extended duration in the third quarter and increased the commitment to the MBS
sector.
OUTLOOK: Our outlook for the investment grade markets is positive given our
sanguine inflation view and optimistic assumptions regarding the budget deficit.
Although we are positive on the fundamentals for the emerging markets and high
yield sectors, in the short run the market may experience some volatility as
Asian countries continue to try to resolve their economic problems. The problems
will take years to correct, but what the markets are looking for is a long term,
multi year strategy combined with a refinancing of short term obligations into
longer term obligations that would resolve the liquidity crisis in countries
such as Indonesia and Korea. Our current high yield and emerging markets
allocations remain at 35% and 15% respectively, below our long term targets of
40% and 20%. We will be monitoring the employment cost index for signs of rising
inflation pressures, progress on the US budget deficit, flows into bond mutual
funds, Asian economic reforms and credit fundamentals in both the US and
emerging market economies.
xxix
<PAGE> 30
GLOBAL GOVERNMENT BOND TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek a high level of total return by placing primary
emphasis on high current income and the preservation of
capital by investing primarily in a global portfolio of
high-quality, fixed-income securities of foreign and United
States governmental entities and supranational issuers.
SUBADVISER: Oechsle International Advisors, L.P.
PORTFOLIO MANAGER: Astrid Vogler
INCEPTION DATE: March 18, 1988
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
GLOBAL GOVERNMENT SALOMON BROTHERS
BOND TRUST WORLD GOV'T BOND INDEX
---------- ----------------------
<S> <C>
10000 10000
10100 10000
10130 9951
10040 9858
9840 9643
9761 9585
9651 9477
9761 9722
10150 10171
10130 10327
10179 10222
10100 10072
10080 10079
9988 9939
10059 10071
9887 9859
10028 10057
10322 10515
10150 10161
10413 10354
10434 10441
10494 10536
10838 10664
10656 10523
10616 10381
10585 10259
10602 10227
10842 10567
10998 10761
11258 11098
11373 11011
11425 11135
11842 11632
12008 11825
12071 11942
12373 12240
12435 12244
12008 11799
12118 11981
12172 11956
11965 11841
12237 12094
12541 12328
13030 12810
13160 12944
13268 13146
13985 13830
13703 13584
13703 13509
13572 13355
13615 13461
13982 13875
14315 14263
14590 14595
14519 15003
14567 15154
14383 14743
14074 14509
14303 14595
14635 14850
15026 15142
15175 15374
15457 15699
15614 16857
15712 15823
16017 15868
16787 15345
16677 16539
16872 16511
16579 16393
17019 16532
17398 16665
16775 16556
16384 16533
16259 16552
15822 16406
15822 16643
15041 16778
15925 16717
15963 16838
16452 17108
16028 16873
16041 16920
16169 17275
16542 17717
16967 18769
17384 19117
17845 19855
17845 19770
18171 19517
18252 19136
18584 19563
18836 19709
19297 19932
19759 20141
19813 19893
19636 19792
19664 19764
19884 19685
20018 19689
20287 19844
20480 20225
20764 20304
21226 20387
21853 20769
22390 21043
22330 20872
21793 20315
21778 20163
21599 20009
21746 19833
21926 20373
22289 20615
22335 20455
22155 20442
22710 20878
22694 21312
22743 20986
22988 20923
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Periods Ending December 31, 1997 1 Year 5 Years Inception 5 Years Inception
<S> <C> <C> <C> <C> <C>
Salomon Brothers World Government Bond Index* 0.24% 7.47% 7.87% 43.35% 109.23%
Global Government Bond Trust (at net asset value) 2.95% 9.95% 8.88% 60.72% 129.88%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Global Government Bond Trust returned 3.0%, well
ahead of the Salomon Brothers World Government Bond Index that was up 0.2% and
basically in line with the 3.6% return generated by the average Morningstar
Global Bond fund.
ENVIRONMENT: The year 1997 will probably go down in history as the year of the
Asian crisis. For more than six months, stories of Asian currency or asset
collapses, defaults, rescue packages or downgrades dominated headlines. For the
most part, the Global Government Bond Trust was a beneficiary of this turmoil in
the Far-East.
The Trust held a neutral position in the US, nothing in Japan, and an overweight
position in Europe. Most of our European holdings concentrated on the former
high yielding markets like Italy and Sweden and where we were long duration and
thus benefited from the continued European Monetary Union-induced yield
convergence. In addition, talk of possible deflation stemming from the Asian
situation, together with a flight to quality and liquidity were other factors
which helped push yields down even further. As the US Dollar continued its
strengthening trend we implemented hedging strategies to protect the value of
the Trust.
OUTLOOK: In 1998, we believe that there are very solid fundamental reasons why
bonds are attractive. The Asian meltdown is already having a dampening effect on
the global economy. Commodity prices are falling. Import price deflation will
keep the lid on domestic prices and profit growth will slow, business pricing
power will falter, profit margins will be squeezed, earnings will be
disappointing. Tighter fiscal policy on the part of Asian nations and among
European nations eager to participate in EMU, an almost balanced budget in the
US, a shrinking US Treasury issuance and higher real yields in the US than a
year ago lead us to conclude that bonds offer value. We will, for the time
being, continue to concentrate on the Dollar-bloc. Looking further ahead into
the new year, demand for the Euro, the new European single currency, could put a
cap on the Dollar's uptrend. This could then provide additional return
opportunities for foreign exchange appreciation.
xxx
<PAGE> 31
CAPITAL GROWTH BOND TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To achieve growth of capital by investing in medium-grade or
better debt securities, with income as a secondary
consideration.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGER: Cathy Addison
INCEPTION DATE: June 26, 1984
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
SALOMON BROTHERS LEHMAN BROTHERS
CAPITAL GROWTH BIG BOND AGGREGATE
BOND TRUST INDEX-CORPORATE BOND INDEX
---------- --------------- ----------
<S> <C> <C>
10000 10000 10000
11373 11926 11711
12859 13416 12995
14345 14906 14301
15949 16176 15595
17554 17445 16488
17405 17625 16461
17257 17806 16941
17873 18648 17755
18489 19490 18276
19772 20851 19958
21055 22211 20933
21747 23021 21524
22440 23830 22806
24278 26032 23824
26117 28234 26455
28885 29457 27173
27665 30739 28414
29115 32601 30376
30575 34484 31184
29889 33854 29977
29202 33244 30274
32157 36850 33739
35112 40455 35866
34307 39601 35429
35989 41798 37164
36881 43096 38319
39126 46049 40763
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1997 1 Year 5 Years 10 Years Inception 5 Years 10 Years Inception
<S> <C> <C> <C> <C> <C> <C> <C>
Salomon Bros BIG Bond Index (Corporate)+ 10.17% 8.42% 9.97% 11.95% 49.81% 158.62% 360.49%
Lehman Brothers Aggregate Bond Index* 9.68% 7.49% 9.18% 10.97% 43.46% 140.62% 307.63%
Capital Growth Bond Trust (at net asset value) 8.72% 7.19% 8.53% 10.62% 41.48% 126.74% 291.26%
</TABLE>
+ Salomon Brothers Broad Investment Grade Bond Index-Corporate Component
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Capital Growth Bond Trust returned 8.7% right in
line with the 8.7% returns generated by the average Morningstar General Bond
fund but below the 9.6% return of the Salomon Broad Investment Grade Index.
ENVIRONMENT: The bond market rallied in 1997. The benchmark 30-year US Treasury
Bond began the year at 6.64% rising to a peak of 7.17% and falling to 5.92% by
the end of the year. The yield on the long bond fell 72 basis points and the
yield on the two year note fell 23 basis points causing the yield curve to
flatten. Early in the year interest rates rose largely due to investors' fears
that inflation would increase which in turn was fueled by economic indicators
showing that the economy had picked up speed. As a result, the Fed raised rates
by 25 basis points in order to slow economic growth. However, interest rates
began their downward move from April until the end of the year.
The rally was supported by a slowdown in the economy as GDP dropped from 4.9% in
the first quarter to 3.3% in the second quarter to 3.1% in the third quarter.
Bond yields were propelled even lower by technical factors such as continued
interest from foreign buyers and hedge fund managers, reallocation of funds by
equity managers, the need of mortgage back security traders to offset the
shortening in their portfolios with Treasuries, and decreased issuance of
Treasuries and corporate bonds.
In the latter part of the year, the meltdown in Asia caused a significant sell
in the Asian stock markets and a loss in foreign currency values. This began a
flight to quality with money flowing into US Treasuries. In addition the Asian
events have caused investors to anticipate slowdowns in growth and inflation in
the US.
xxxi
<PAGE> 32
INVESTMENT QUALITY BOND TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek a high level of current income consistent with the
maintenance of principal and liquidity, by investing
primarily in a diversified portfolio of investment grade
corporate bonds and U.S. Government bonds with intermediate
to longer term maturities. Up to 20% of the portfolio's
assets may be invested in non-investment grade fixed income
securities.
SUBADVISER: Wellington Management Company, LLP
PORTFOLIO MANAGER: Thomas L. Pappas
INCEPTION DATE: April 23, 1991
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
<S> <C> <C>
10000 10000 10000
10070 10000 10000
10110 10058 10054
10090 10053 10046
10181 10193 10179
10472 10413 10412
10753 10824 10626
10853 10742 10725
10944 10841 10832
11376 11163 11193
11155 11011 11036
11276 11083 11111
11195 11021 11065
11247 11100 11117
11521 11310 11344
11679 11465 11513
11984 11700 11812
12089 11818 11913
12216 11959 12069
12016 11800 11875
12016 11802 11874
12195 11990 12084
12469 12220 12353
12711 12434 12819
12795 12466 12662
12863 12573 12759
12863 12590 12760
13116 12817 13057
13173 12891 13143
13439 13116 13454
13494 13152 13495
13538 13200 13555
13350 13088 13397
13418 13158 13462
13594 13336 13685
13261 13104 13379
12574 12781 13023
12735 12678 12909
12724 12577 12877
12700 12649 12846
12933 12901 13126
12956 12916 13135
12758 12726 12920
12724 12715 12901
12689 12687 12879
12793 12775 12972
13028 13028 13230
13316 13338 13562
13409 13419 13561
13611 13607 13555
14170 14133 14472
14281 14237 14592
14232 14205 14533
14405 14377 14735
14554 14517 14893
14802 14705 15103
15038 14926 15355
15288 15135 15601
15361 15238 15699
15060 14973 15352
14926 14868 15223
14797 14785 15096
14758 14755 15070
14942 14953 15278
14982 14993 15311
14956 14988 15271
15233 15228 15559
15536 15565 15943
15839 15832 15252
15681 15685 16057
15721 15734 16077
15760 15773 16122
15562 15598 15911
15520 15832 16147
15961 15982 16307
16174 16172 16514
16885 16609 17051
16486 16486 16840
16756 16712 17114
16955 16964 17371
17040 17032 17484
17210 17204 17648
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1997 1 Year 5 Years Inception 5 Years Inception
<S> <C> <C> <C> <C> <C>
Customized Benchmark*+ 9.91% 7.87% 8.89% 46.05% 76.48%
Lehman Brothers Aggregate Bond Index* 9.68% 7.49% 8.48% 43.49% 72.04%
Investment Quality Bond Trust (at net asset value) 9.75% 7.13% 8.46% 41.12% 72.10%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
+ Customized Benchmark is comprised of 50% of the return of the Lehman Brothers
Government Bond Index and 50% of the return of the Lehman Brothers Corporate
Bond Index.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For the year, the Investment Quality Bond Trust returned 9.75%, in
line with the 9.68% returns on the Lehman Brothers Aggregate Bond Index.
ENVIRONMENT: During 1997, Treasury yields declined and prices rose. Inflation
expectations dove as commodity prices deflated. Oil prices dove 14%, gold
plummeted by 24% and domestic inflation, as measured by CPI, finished at 1.7%.
In addition, with the deflationary implication of troubles in Asia, it was not
surprising to see long Treasuries fall by 70 basis points, breaking through the
6% level.
Treasuries finished the year with the most momentum; for the year, however, they
performed in line with both mortgages and high quality corporate bonds.
Meanwhile, high yield continued to outperform, generating an index total return
over 12%. The Trust benefited from the constructive rate outlook but was held
back by a small (under 2%) position in Southeast Asian bonds.
OUTLOOK: The current outlook for the US, despite robust current growth and
little slack in labor or manufacturing capacity, is materially different as a
result of the situation in Asia. The consensus has reduced growth and inflation
expectations each by one-half percent. Anecdotal evidence which has recently
surfaced suggests that these reductions may not be enough. With a continued
positive backdrop for bonds, our inclination is to add to Treasuries rather than
mortgages or corporate bonds, as the extra yield premium to own corporates and
mortgages leaves little room for error as we enter a riskier time for the
economy. Opportunities continue to surface in high yield, but we do not expect
to increase exposure to the high yield sector.
xxxii
<PAGE> 33
U.S. GOVERNMENT SECURITIES TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To seek a high level of current income consistent with
preservation of capital and maintenance of liquidity by
investing in debt obligations and mortgage-backed securities
issued or guaranteed by the U.S. Government, its agencies or
instrumentalities and derivative securities such as
collateralized mortgage obligations backed by such
securities.
SUBADVISER: Salomon Brothers Asset Management Inc
PORTFOLIO MANAGER: Steven Guterman, Roger Lavan
INCEPTION DATE: May 1, 1989*
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
U.S. GOVERNMENT MERRILL LYNCH 1-10
SECURITIES TRUST YEAR GOV'T INDEX
---------------- ----------------
<S> <C>
10000 10000
10039 10211
10165 10471
10341 10686
10214 10538
10292 10590
10555 10807
10552 10913
10691 10940
10594 10878
10533 10905
10652 10927
10593 10589
10839 11119
10976 11264
11143 11425
11104 11378
11192 11480
11300 11639
11487 11813
11614 11981
11742 12102
11791 12164
11840 12230
11942 12357
12015 12428
12015 12441
12169 12575
12427 12810
12623 13027
12767 13175
12921 13329
13241 13654
13024 13516
13076 13567
12973 13512
13123 13535
13328 13830
13554 14030
13836 14291
13985 14458
14179 14555
13984 14475
13888 14411
14051 14601
14298 14874
14503 15098
14587 15155
14664 15275
14618 15229
14855 15448
14577 15481
15065 15717
15124 15785
15147 15812
15068 15738
15138 15797
15282 15955
15079 15729
14900 15509
14875 15403
14599 15418
14854 15429
15029 15621
15100 15669
14923 15544
14887 15547
14852 15469
14947 15528
15207 15788
15528 16087
15621 16176
15794 16362
16383 16830
16465 16939
16427 16951
16578 17090
16692 17204
16882 17400
17088 17614
17275 17794
17388 17945
17110 17753
17009 17873
16948 17619
16879 17610
17067 17784
17121 17839
17134 17859
17402 18088
17724 18417
17992 18641
17858 18544
17952 18615
18019 18637
17885 18544
18123 18752
18252 18898
18424 19061
18753 19415
18697 19336
18928 19548
19142 19773
19185 19816
19371 19987
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since* Since
Periods Ending December 31, 1997 1 Year 5 Years Inception Dec 13, 1991 5 Years Inception
<S> <C> <C> <C> <C> <C> <C>
Merrill Lynch 1-10yr Gov't Index** 7.78% 6.48% 8.32% 6.84% 36.88% 99.87%
U.S. Gov't Securities Trust (at net asset value) 8.47% 6.62% 7.93% 6.73% 37.77% 93.71%
</TABLE>
* Current subadviser assignment became effective 12/13/91.
** All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: The US Government Securities Trust posted an 8.47% return in 1997
which compares very favorably with the Merrill Lynch 1-10 Year Government Index
return of 7.78%.
ENVIRONMENT: Economic conditions in the US remained surprisingly favorable
throughout 1997. The combination of moderate growth and low inflation supported
the financial markets. The Federal Reserve's decision to raise interest rates in
March was widely anticipated, and since then, the market continued to be
comforted by the fact that strong growth did not translate into higher inflation
readings. The turmoil in Asian markets reverberated throughout the world later
in the year, and the resultant dampening effects are likely to keep the Fed on
hold for the near term.
The Trust's strong performance reflects the continued overweight position in
mortgage-backed securities. Indeed, mortgages (as measured by the Salomon
Brothers Mortgage Index) posted returns of 9.27% in 1997, which on a
duration-adjusted basis outdistanced benchmark Treasuries by approximately 132
basis points. The Trust's performance was also helped by the slightly longer
duration position relative to the benchmark since midyear.
OUTLOOK: As we move into 1998, the effects of the turmoil in Asia will continue.
While we believe that the direct impact on the US will be limited, the indirect
effects could be larger. The weakness in Asia should dampen US growth to
sustainable levels, offsetting strength in housing and other consumer sectors.
This should also serve to curb mounting pressure in the labor force. We believe
that the inflation picture will improve going forward, as price competition in
commodities and produced goods from countries such as Korea and Japan keep US
prices in check. This combination of slower growth and lower inflation should
benefit financial assets in 1998. Barring a significant decline in interest
rates, we believe that additional spreads from mortgages will lead to higher
returns versus Treasuries.
xxxiii
<PAGE> 34
LIFESTYLE AGGRESSIVE 1000 TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to provide long-term growth of capital (current income
is not a consideration) by investing 100% of the Lifestyle
Trust's assets in other portfolios of the Trust which invest
primarily in equity securities.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGER: Management Team
INCEPTION DATE: January 7, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD LIFESTYLE AGGRESSIVE 1000
(FISCAL YEAR COVERED) TRUST RUSSELL 2000 INDEX
- --------------------- ----- ------------------
<S> <C> <C>
DEC-96 10000 10000
10112 10200
9920 9952
MAR-97 9568 9483
9637 9509
10302 10567
JUN-97 10738 11020
11321 11533
10886 11797
SEP-97 11543 12660
10968 12104
10960 12026
DEC-97 11089 12236
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
Russell 2000 Index* 22.36%
Lifestyle Aggressive 1000 Trust (at net asset value) 10.89%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: Since inception on January 7, 1997, the Lifestyle Aggressive 1000
Trust was up 10.9%, below the full-year returns posted by the Morningstar
Aggressive Growth peers who averaged 16.4%. In context, the more aggressively
positioned the portfolio, the worse relative performance was produced. For
example, large cap growth stocks outperformed small cap growth stocks by over
2000 basis points, the biggest gap in 20 years.
ENVIRONMENT: Lifestyle portfolios are constructed as an optimal blend of asset
classes and investment styles based on Modern Portfolio Theory. They are
intended to be long-term investments designed to meet or better the risk-return
characteristics of their benchmarks. Over short periods of time, a few asset
classes and style groups may outperform or underperform the Lifestyle portfolio.
But, over the long-term this well-diversified mix is expected to provide strong,
long-term performance with a relatively low level of volatility. This portfolio
is heavily weighted in small and mid cap stocks (50%) and to international
markets (30%), asset classes that were particularly out of favor in 1997.
Small-cap growth stocks as measured by the Russell 2000 Growth Index returned
only 12.9% for the year and international stocks as measured by the MSCI EAFE
Index advanced only 2.1% for the year. While somewhat disappointing in relation
to the returns on US large caps this year, the assets in this portfolio have
historically demonstrated a tendency toward long-term superior performance.
The only positive contribution to relative performance was the Trust's exposure
to US large cap stocks (10%). All other asset classes, mid caps, small caps,
international fixed income and real estate produced lower relative returns. At
the end of the third quarter, the addition of the Small Company Value portfolio
allowed us to bring our small cap value weight in line with our long-term model.
Timing was less than fortunate as the Asian crisis escalated in the fourth
quarter producing setbacks in small cap stocks.
Relative to our peers who had the benefit of the full year, returns were
impacted by the S&P 500 posting strong returns in the first five days of 1997
prior to the launch of the Trust. Performance was also impacted by poor
performance of the Pilgrim Baxter Growth portfolio (20% allocation). The highly
volatile growth-oriented style of Pilgrim-Baxter has served up stunning returns
and equally breath-taking periods of underperformance. Over time, patience has
rewarded those who can live with the volatility with some of the highest
performance numbers among all growth managers.
OUTLOOK: As with all our Lifestyle Funds our strategy is to stay the course.
Across all investment styles, small and mid-cap stocks appear to offer better
value, i.e. lower Price Earnings ratios, Price to Cash flow ratios and Price to
Book values than US large caps. The flight to quality stemming from the Asian
crisis in the fourth quarter of 1997 served only to exacerbate the difference.
Yet the valuation risk in the US large caps is balanced by the positive economic
and fundamental factors that drove the market to such unexpectedly strong
returns in 1997. Over time, we expect the performance gap that currently exists
between US large caps and all other asset classes to shift and revert to more
historical levels. For example, we expect the high dividends and positive
fundamentals in the real estate segment to continue producing steady returns
with little or no relationship to the overall direction of the market.
xxxiv
<PAGE> 35
LIFESTYLE GROWTH 820 TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to provide long-term growth of capital with
consideration also given to current income by investing
approximately 20% of the Lifestyle Trust's assets in
Underlying Portfolios which invest primarily in fixed income
securities and approximately 80% of its assets in Underlying
Portfolios which invest primarily in equity securities.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGER: Management Team
INCEPTION DATE: January 7, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD LIFESTYLE GROWTH LEHMAN BROTHERS BLENDED
(FISCAL YEAR COVERED) 820 TRUST S&P 500 INDEX GOV'T/CORP INDEX BENCHMARK
<S> <C> <C> <C> <C>
DEC-96 10000 10000 10000 10000
JAN-97 10144 10412 10012 10332
FEB-97 10104 10496 10033 10403
MAR-97 9824 10060 9914 10032
APR-97 9967 10660 10058 10541
MAY-97 10517 11315 10152 11078
JUN-97 10894 11819 10274 11500
JUL-97 11420 12758 10588 12301
AUG-97 11132 12049 10470 11726
SEP-97 11641 12708 10634 12277
OCT-97 11173 12284 10804 11988
NOV-97 11247 12853 10861 12445
DEC-97 11384 13074 10975 12642
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative-Total-Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
S&P 500 Index 30.74%
Lehman Brothers Government/Corporate Bond Index* 9.75%
Blended Benchmark+ 26.42%
Lifestyle Growth 820 Trust (at net asset value) 13.84%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
+ Blended Benchmark consists of 80% of the return of the S&P 500 Index and 20%
of the return of the Lehman Brothers Government/ Corporate Bond Index.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: Since inception on January 7, 1997, the Lifestyle Growth 820 Trust
was up 13.8%. Returns were in line with the 14.2% full-year returns for the
average of its peers in the Morningstar Asset Allocation and Multi-asset Global
categories. This peer group on average maintains a comparable mix of bonds,
international and domestic stocks.
ENVIRONMENT: Lifestyle portfolios are constructed as an optimal blend of asset
classes and investment styles based on Modern Portfolio Theory. They are
intended to be long-term investments designed to meet or better the risk-return
characteristics of their benchmarks. Over short periods of time, a few asset
classes and style groups may outperform or underperform the Lifestyle portfolio.
But, over the long-term this well-diversified mix is expected to provide strong,
long-term performance with a relatively low level of volatility. The Trust's
exposure to US large cap stocks produced a positive contribution. All other
asset classes, mid caps, small caps, international fixed income and real estate
produced lower relative returns. At the end of the third quarter, the addition
of the Small Company Value portfolio allowed us to bring our small cap value
weight in line with our long-term model.
Relative to our peers who had the benefit of the full year, returns were
impacted by the S&P 500 posting strong returns in the first five days of 1997
prior to the launch of the Trust. Performance was also impacted by poor
performance of the Pilgrim Baxter Growth portfolio (10% allocation). The highly
volatile growth-oriented style of Pilgrim-Baxter has served up stunning returns
and scary losses in the past. Over time, patience has rewarded those who can
live with the volatility with some of the highest performance numbers among all
growth managers.
OUTLOOK: As with all our Lifestyle Funds our strategy is to stay the course.
Across all investment styles, small and mid-cap stocks appear to offer better
value, i.e. lower Price Earnings ratios, Price to Cash flow ratios and Price to
Book values than US large caps. Yet the valuation risk in the US large caps is
balanced by the positive economic and fundamental factors that drove the market
to such unexpectedly strong returns in 1997. We are patient, long-term investors
and fully expect that the performance gap that currently exists between US large
caps and all other asset classes will shift and revert to more historical
levels.
xxxv
<PAGE> 36
LIFESTYLE BALANCED 640 TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to provide a balance between a high level of current
income and growth of capital with a greater emphasis given
to capital growth by investing approximately 40% of the
Lifestyle Trust's assets in Underlying Portfolios which
invest primarily in fixed income securities and
approximately 60% of its assets in Underlying Portfolios
which invest primarily in equity securities.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGER: Management Team
INCEPTION DATE: January 7, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
MEASUREMENT PERIOD LIFESTYLE BALANCED LEHMAN BROTHERS BLENDED
(FISCAL YEAR COVERED) 640 TRUST S&P 500 INDEX GOV'T/CORP INDEX BENCHMARK
- --------------------- --------- ------------- ---------------- ---------
<S> <C> <C> <C> <C>
DEC-96 10000 10000 10000 10000
10147 10412 10012 10252
10151 10498 10033 10310
MAR-97 9907 10050 9914 10004
10099 10660 10058 10421
10528 11315 10152 10843
JUN-97 10842 11819 10274 11186
11330 12758 10588 11855
11127 12049 10470 11407
SEP-97 11541 12708 10634 11853
11176 12284 10804 11692
11261 12853 10861 12041
DEC-97 11411 13074 10975 12216
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
S&P 500 Index 30.74%
Lehman Brothers Government/Corporate Bond Index* 9.75%
Blended Benchmark+ 22.16%
Lifestyle Balanced 640 Trust (at net asset value) 14.11%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
+ Blended Benchmark consists of 60% of the return of the S&P 500 Index and 40%
of the return of the Lehman Brothers Government/ Corporate Bond Index.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: Since inception on January 7, 1997, the Lifestyle Balance 640 Trust
was up 14.1%. Returns were somewhat below the full-year 16.6% average return
among asset allocation peers in the Morningstar mutual fund universe. Returns
were in line with the 14.2% full-year returns for the average of its peers in
the Morningstar Asset Allocation and Multi-asset Global categories. This peer
group on average maintains a comparable mix of bonds, international and domestic
stocks.
ENVIRONMENT: Lifestyle portfolios are constructed as an optional blend of asset
classes and investment styles based on Modern Portfolio Theory. They are
intended to be long-term investments designed to meet or better the risk-return
characteristics of their benchmarks. Over short periods of time, a few asset
classes and style groups may outperform or underperform the Lifestyle portfolio.
But, over the long-term this well-diversified mix is expected to provide strong,
long-term performance with a relatively low level of volatility.
The biggest contributor to overall performance was the Trust's 30% exposure to
US large and mid-cap stocks. At the end of the third quarter, the addition of
the Small Company Value portfolio allowed us to bring our small cap value weight
in line with our long-term model. Overall performance was enhanced by the active
fixed income managers all of whom produced at or above benchmark performance.
Particularly rewarding was the 10% allocation to the Salomon-managed Strategic
Bond portfolio (up 10.98% in 1997) which continues to provide access to
high-yielding asset classes and stellar risk-adjusted returns. On a relative
basis, returns were impacted by the S&P 500 posting strong returns in the first
five days of 1997 prior to the launch of the Trust. The poor performance of the
Pilgrim Baxter Growth portfolio (5%) was in part offset by the performance of
the Warburg Pincus-managed Emerging Growth portfolio (5%) which beat the Russell
2000 Growth Index by over 600 basis points. Overall allocations to anything
other than US large caps negatively impacted relative performance. Small caps,
for example suffered their worst performance relative to the S&P 500 in over 20
years.
OUTLOOK: As with all our Lifestyle Funds our strategy is to stay the course.
Small and mid-cap stocks now appear to offer better value, i.e. lower Price
Earnings ratios, Price to Cash flow ratios and Price to Book values than US
large caps. However, the valuation risk in the US large caps is balanced by the
positive economic and fundamental factors that drove the market to such
unexpectedly strong returns in 1997. Over time, we expect the performance gap
that currently exists between US large caps and all other asset classes to shift
and revert to more historical levels.
xxxvi
<PAGE> 37
LIFESTYLE MODERATE 460 TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to provide a balance between a high level of current
income and growth of capital with a greater emphasis given
to high income by investing approximately 60% of the
Lifestyle Trust's assets in Underlying Portfolios which
invest primarily in fixed income securities and
approximately 40% of its assets in Underlying Portfolios
which invest primarily in equity securities.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGER: Management Team
INCEPTION DATE: January 7, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
LIFESTYLE
MEASUREMENT PERIOD MODERATE 460 LEHMAN BROTHERS BLENDED
(FISCAL YEAR COVERED) TRUST S&P 500 INDEX GOV'T/CORP INDEX BENCHMARK
- --------------------- ----- ------------- ---------------- ---------
<S> <C> <C> <C> <C>
DEC-96 10000 10000 10000 10000
10134 10412 10012 10172
10206 10496 10033 10218
MAR-97 10046 10060 9914 9975
10253 10560 10058 10300
10548 11315 10152 10611
JUN-97 10785 11819 10274 10877
11182 12758 10588 11422
10998 12049 10470 11091
SEP-97 11285 12708 10634 11438
11082 12284 10804 11395
11232 12853 10861 11643
DEC-97 11370 13074 10975 11796
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1997 Inception
<S> <C>
S&P 500 Index 30.74%
Lehman Brothers Government/Corporate Bond Index* 9.75%
Blended Benchmark+ 17.96%
Lifestyle Moderate 460 Trust (at net asset value) 13.70%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
+ Blended Benchmark consists of 40% of the return of the S&P 500 Index and 60%
of the return of the Lehman Brothers Government/ Corporate Bond Index.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: Since inception on January 7, 1997, the Lifestyle Moderate 460
Trust was up 13.7%, roughly in line with the 14.2% full year returns for the
average of its peers in the Morningstar Asset Allocation and Multi-asset Global
categories. This peer group maintains a comparable, though somewhat more
aggressive asset mix. However, returns were below the extraordinary 18.9% full
year return to a 40% S&P 500/60% Lehman Brothers Government/Corporate Bond mix.
ENVIRONMENT: Clearly the biggest contributor to overall performance was the
Trust's 30% exposure to US stocks of which two-thirds were large caps. In
addition, all the active fixed income managers produced at or above benchmark
performance, particularly the 10% allocation to the Salomon-managed Strategic
Bond portfolio (up 10.98% in 1997) which continues to provide access to
high-yielding asset classes and stellar risk-adjusted returns. The returns
relative to the full year 40% stock/60% bond benchmark were impacted by the
strong first days of 1997 which accounted for nearly 100 basis points of the
performance gap. Our 10% allocation to international equities dragged on
performance particularly in the fourth quarter when the Asian crisis emerged as
front-page news.
OUTLOOK: Our strategy is to stay the course. At current levels, the US equity
market by most traditional valuation measures is above fair value. Yet, the
positive economic and fundamental factors that drove the market to such
unexpectedly strong returns in 1997 remain intact. We are confident that the
highly defensive, low P/E strategy that has worked so well for the MAS-managed
Value portfolio will provide strong equity exposure with considerable protection
should valuation become a significant negative factor for the market overall.
xxxvii
<PAGE> 38
LIFESTYLE CONSERVATIVE 280 TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: Seeks to provide a high level of current income with some
consideration also given to growth of capital by investing
approximately 80% of the Lifestyle Trust's assets in
Underlying Portfolios which invest primarily in fixed income
securities and approximately 20% of its assets in Underlying
Portfolios which invest primarily in equity securities.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGER: Management Team
INCEPTION DATE: January 7, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[GRAPH]
<TABLE>
<CAPTION>
LIFESTYLE
MEASUREMENT PERIOD CONSERVATIVE 280 LEHMAN BROTHERS BLENDED
(FISCAL YEAR COVERED) TRUST S&P 500 INDEX GOV'T/CORP INDEX BENCHMARK
<S> <C> <C> <C> <C>
DEC-96 10000 10000 10000 10000
10115 10412 10012 10092
10176 10496 10033 10125
MAR-97 10071 10060 9914 9945
10236 10660 10058 10180
10422 11315 10152 10380
JUN-97 10591 11819 10274 10573
10890 12758 10588 10999
10787 12049 10470 10778
SEP-97 10991 12708 10634 11032
10983 12284 10804 11099
11089 12853 10861 11249
DEC-97 11215 13074 10975 11382
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
-----------------------
Since
Periods Ending December 31, 1997 Inception
<S> <C>
S&P 500 Index 30.74%
Lehman Brothers Government/Corporate Bond Index* 9.75%
Blended Benchmark+ 13.82%
Lifestyle Conservative 280 Trust (at net asset value) 12.15%
</TABLE>
* All since inception returns for the indices begin on the month-end closest to
the actual inception date of the Trust.
+ Blended Benchmark consists of 20% of the return of the S&P 500 Index and 80%
of the return of the Lehman Brothers Government/ Corporate Bond Index.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: Since inception, the Lifestyle Conservative 280 Trust was up 12.2%,
well above the 8.7% full year returns of its peers in the Morningstar Corporate
Bond -- General category or the 8.4% full year returns of the peers in the
Morningstar Multi-Sector Bond category.
ENVIRONMENT: Clearly the biggest contributor to overall performance was the
Trust's full 20% exposure to the strong domestic large cap stock rally. To
maintain a full equity weight, the allocation to equity funds was held at 25% of
the portfolio to account for all the cash in the underlying portfolios and bring
the net equity position to a full 20%. In addition, all of our active fixed
income managers produced at or above benchmark performance particularly the
Salomon-managed Strategic Bond portfolio (up 10.97% in 1997) which continues to
provide access to high-yielding asset classes and stellar risk-adjusted returns.
OUTLOOK: Our strategy is to stay the course. At current levels, the US equity
market by most traditional valuation measures is above fair value. Yet, the
positive economic and fundamental factors that drove the market to such
unexpectedly strong returns in 1997 remain intact. We continue to review the
asset mix in the portfolio, particularly the level of international equity
exposure in the underlying portfolios with a view to ensuring that this exposure
reaches about 6%, in line with the long-term asset model for this fund.
xxxviii
<PAGE> 39
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
Manufacturers Investment Trust:
We have audited the accompanying statements of assets and liabilities of
Manufacturers Investment Trust (comprising, the Pacific Rim Emerging Markets,
Science & Technology, International Small Cap, Emerging Growth, Pilgrim
Baxter Growth, Small/Mid Cap, International Stock, Worldwide Growth, Global
Equity, Small Company Value, Equity, Growth, Quantitative Equity, Equity
Index, Blue Chip Growth, Real Estate Securities, Value, International Growth
and Income, Growth and Income, Equity-Income, Balanced, Aggressive Asset
Allocation, Moderate Asset Allocation, Conservative Asset Allocation, High
Yield, Strategic Bond, Global Government Bond, Capital Growth Bond,
Investment Quality Bond, U.S. Government Securities, Money Market, Lifestyle
Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle
Moderate 460 and Lifestyle Conservative 280 Trusts), including the portfolios
of investments, as of December 31, 1997, the related statements of operations
for the period then ended and the statements of changes in net assets for
each of the periods presented. In addition, we have audited the financial
highlights of Science & Technology, International Small Cap, Pilgrim Baxter
Growth, Small/Mid Cap, Worldwide Growth, Global Equity, Small Company Value,
Equity, Growth, Equity Index, Blue Chip Growth, Value, International Growth
and Income, Growth and Income, Equity-Income, Aggressive Asset Allocation,
Moderate Asset Allocation, Conservative Asset Allocation, High Yield,
Strategic Bond, Global Government Bond, Investment Quality Bond, U.S.
Government Securities, Money Market, Lifestyle Aggressive 1000, Lifestyle
Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle
Conservative 280 Trusts for each of the periods presented and the financial
highlights of Pacific Rim Emerging Markets, Emerging Growth, International
Stock, Quantitative Equity, Real Estate Securities, Balanced and Capital
Growth Bond Trusts for the periods ended December 31, 1997 and 1996. These
financial statements and financial highlights are the responsibility of the
Trusts' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
The financial highlights for the periods ended December 31, 1988 through
December 31, 1995, presented therein, for the Pacific Rim Emerging Markets,
Emerging Growth, International Stock, Quantitative Equity, Real Estate
Securities, Balanced and Capital Growth Bond Trusts were audited by other
auditors whose report dated February 2, 1996 expressed an unqualified opinion
on those financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1997 by correspondence with the 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 and financial highlights referred to
in the first paragraph above present fairly, in all material respects, the
financial position of each of the Trusts comprising Manufacturers Investment
Trust as of December 31, 1997, the results of their operations, the changes
in their net assets and the financial highlights for each of the periods
referred to above, in conformity with generally accepted accounting
principles.
Boston, Massachusetts
February 25, 1998
1
<PAGE> 40
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACIFIC RIM PILGRIM
EMERGING SCIENCE & INTERNATIONAL EMERGING BAXTER
MARKETS TECHNOLOGY SMALL CAP GROWTH GROWTH
ASSETS TRUST TRUST TRUST TRUST TRUST
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investments in securities, at value (Includes
repurchase agreements of $5,705,000 and
$30,113,000 in the Pacific Rim Emerging Markets
and International Small Cap Trusts, respectively)
(See accompanying portfolio of investments) ........ $24,313,646 $81,617,741 $134,997,447 $343,991,933 $96,348,849
Forward foreign currency contracts to buy, at value
(Cost $439,330) (Notes 2 and 8) .................... -- -- 432,527 -- --
Cash ................................................. 336,169 963 2,772,918 777 802
Foreign currency (Cost: $1,462,191 and $1,145,976 in
the Pacific Rim Emerging Markets and International
Small Cap Trusts, respectively) (Notes 2 and 8) .... 1,372,956 -- 1,110,812 -- --
Receivables:
Investments sold .............................. 3,968 -- 205,910 36,759 --
Fund shares sold .............................. 2,827 131,010 276,021 -- --
Dividends and interest ........................ 45,852 7,650 40,434 26,315 2,785
Foreign tax withholding reclaims .............. 1,909 -- 54,576 -- --
Other assets ......................................... 69 150 337 679 206
------------ ------------ ------------ ------------ ------------
Total assets .............................. 26,077,396 81,757,514 139,890,982 344,056,463 96,352,642
------------ ------------ ------------ ------------ ------------
LIABILITIES
Payables:
Forward foreign currency contracts to buy
(Notes 2 and 8) ............................. -- -- 439,330 -- --
Investments purchased ......................... -- 477,956 622,317 210,479 2,607,764
Fund shares redeemed .......................... 1,070,660 -- 1,705 1,624,090 397,321
Dividend and interest withholding tax ......... 1,332 -- 5,724 -- --
Custodian fee ................................. 16,328 1,972 21,426 9,137 6,180
Securities lending ............................ 1,136,665 13,925,496 10,214,498 66,418,106 --
Other accrued expenses ........................ 2,087 4,514 10,272 20,570 6,231
------------ ------------ ------------ ------------ ------------
Total liabilities ......................... 2,227,072 14,409,938 11,315,272 68,282,382 3,017,496
------------ ------------ ------------ ------------ ------------
NET ASSETS ........................................... $23,850,324 $67,347,576 $128,575,710 $275,774,081 $93,335,146
============ ============ ============ ============ ============
Net assets consist of:
Undistributed net investment income
(loss) (Note 2) ............................. ($92,260) -- $444,269 -- --
Accumulated undistributed net realized
gain (loss) on investments, foreign currency
and forward foreign currency contracts ...... (494,317) ($1,055,655) (4,503,928) $4,030,117 ($4,090,189)
Unrealized appreciation (depreciation) on:
Investments ................................. (9,050,768) (1,610,969) 8,630,508 43,089,067 6,765,675
Foreign currency and forward foreign currency
contracts ................................. (91,018) -- (37,222) -- --
Capital shares at par value of $.01 (Note 4) .. 33,300 49,441 93,822 114,268 74,667
Additional paid-in capital .................... 33,545,387 69,964,759 123,948,261 228,540,629 90,584,993
------------ ------------ ------------ ------------ ------------
Net assets .............................. $23,850,324 $67,347,576 $128,575,710 $275,774,081 $93,335,146
============ ============ ============ ============ ============
Capital shares outstanding (Note 4) .................. 3,329,953 4,944,146 9,382,231 11,426,808 7,466,705
------------ ------------ ------------ ------------ ------------
Net asset value, offering price and redemption price
per share .......................................... $7.16 $13.62 $13.70 $24.13 $12.50
============ ============ ============ ============ ============
Investments in securities, at identified cost (Note 2) $33,364,414 $83,228,710 $126,366,939 $300,902,866 $89,583,174
============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE> 41
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL
SMALL/MID INTERNATIONAL WORLDWIDE GLOBAL COMPANY
CAP STOCK GROWTH EQUITY VALUE
ASSETS TRUST TRUST TRUST TRUST TRUST
------------ ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
Investments in securities, at value (Includes a
repurchase agreement of $5,570,000 in the
Worldwide Growth Trust) (See accompanying
portfolio of investments) .......................... $313,019,389 $160,219,217 $29,609,825 $918,950,634 $69,525,010
Receivable for forward foreign currency contracts
to sell (Notes 2 and 8) ............................ -- 2,837 -- 83,499,358 --
Forward foreign currency contracts to buy, at value
(Cost: $423,768) (Notes 2 and 8) ................... -- -- -- 421,942 --
Cash ................................................. 725 928 1,307,481 419 55
Foreign currency (Cost: $752,596, $69,892 and
$4,257,204 in the International Stock, Worldwide
Growth and Global Equity Trusts, respectively)
(Notes 2 and 8) .................................... -- 745,526 68,940 4,217,581 --
Receivables:
Investments sold .............................. 5,165,532 43,779 -- 1,141,768 341,435
Fund shares sold .............................. 1,327,202 571,861 -- -- 65,922
Dividends and interest ........................ 108,698 99,519 8,105 1,912,588 92,623
Foreign tax withholding reclaims .............. -- 45,691 3,197 181,402 --
Other assets ......................................... 692 320 54 2,224 10,104
------------ ------------ ------------ ------------- ------------
Total assets .............................. 319,622,238 161,729,678 30,997,602 1,010,327,916 70,035,149
------------ ------------ ------------ ------------- ------------
LIABILITIES
Forward foreign currency contracts to sell, at
value (Cost: $2,837 and $83,499,358 in the
International Stock and Global Equity Trusts,
respectively) (Notes 2 and 8) ...................... -- 2,830 -- 83,577,896 --
Payables:
Forward foreign currency contracts to buy
(Notes 2 and 8) ............................. -- -- -- 423,768 --
Investments purchased ......................... 12,788,500 8,173 1,618,145 3,033,994 2,704,459
Fund shares redeemed .......................... 724 892,005 81,699 1,272,257 239,606
Dividend and interest withholding tax ......... -- 5,211 493 107,457 --
Custodian fee ................................. 4,268 21,895 1,613 49,550 --
Securities lending ............................ 38,431,346 15,537,088 5,032,012 53,383,326 --
Other accrued expenses ........................ 20,888 9,579 1,605 66,921 --
------------ ------------ ------------ ------------- ------------
Total liabilities ......................... 51,245,726 16,476,781 6,735,567 141,915,169 2,944,065
------------ ------------ ------------ ------------- ------------
NET ASSETS ........................................... $268,376,512 $145,252,897 $24,262,035 $868,412,747 $67,091,084
============ ============ ============ ============= ============
Net assets consist of:
Undistributed net investment income
(loss) (Note 2) ............................. -- $9,928 ($7,360) $15,666,642 $56,115
Accumulated undistributed net realized
gain (loss) on investments, foreign currency
and forward foreign currency contracts ...... ($1,179,845) (894,628) (87,537) 48,191,141 (761,428)
Unrealized appreciation (depreciation) on:
Investments ................................. 32,753,291 (1,192,615) 771,847 136,950,676 (1,242,712)
Foreign currency and forward foreign currency
contracts ................................. -- (9,190) (428) (119,572) --
Capital shares at par value of $.01 (Note 4) .. 174,180 126,610 17,278 448,132 56,180
Additional paid-in capital .................... 236,628,886 147,212,792 23,568,235 667,275,728 68,982,929
------------ ------------ ------------ ------------- ------------
Net assets .............................. $268,376,512 $145,252,897 $24,262,035 $868,412,747 $67,091,084
============ ============ ============ ============= ============
Capital shares outstanding (Note 4) .................. 17,417,967 12,661,021 1,727,778 44,813,235 5,618,018
------------ ------------ ------------ ------------- ------------
Net asset value, offering price and redemption price
per share .......................................... $15.41 $11.47 $14.04 $19.38 $11.94
============ ============ ============ ============= ============
Investments in securities, at identified cost (Note 2) $280,266,098 $161,411,832 $28,837,978 $781,999,958 $70,767,722
============ ============ ============ ============= ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 42
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUANTITATIVE EQUITY BLUE CHIP
EQUITY GROWTH EQUITY INDEX GROWTH
ASSETS TRUST TRUST TRUST TRUST TRUST
-------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investments in securities, at value (Includes a
repurchase agreement of $33,923,000 in the
Growth Trust) (See accompanying portfolio
of investments) .................................... $1,696,085,710 $186,742,805 $180,436,025 $30,717,873 $765,629,273
Cash ................................................. 560 822 726 29,274 1,000
Foreign currency (Cost: $7, $32,718 and $12 in the
Equity, Growth and Blue Chip Growth Trusts,
respectively) (Notes 2 and 8) ...................... 6 32,886 -- -- 12
Receivables:
Investments sold .............................. 29,365,620 256,813 -- -- 439,371
Fund shares sold .............................. 1,797,715 676,383 143,384 26,515 351,008
Dividends and interest ........................ 1,243,419 138,325 259,637 25,838 851,491
Foreign tax withholding reclaims .............. -- 1,985 -- -- 2,092
Other assets ......................................... 3,924 377 388 56 1,662
-------------- ------------ ------------ ------------ ------------
Total assets .............................. 1,728,496,954 187,850,396 180,840,160 30,799,556 767,275,909
-------------- ------------ ------------ ------------ ------------
LIABILITIES
Payables:
Investments purchased ......................... 15,797,250 4,104,287 -- -- 2,358,937
Fund shares redeemed .......................... 253,697 -- 26,886 -- 85
Dividend and interest withholding tax ......... 972 903 -- 5 12,130
Variation margin for open futures contracts ... -- -- -- 1,100 --
Custodian fee ................................. 12,732 4,437 4,215 1,458 7,607
Securities lending ............................ 190,931,857 16,341,262 13,267,548 3,720,737 55,974,160
Other accrued expenses ........................ 118,346 11,341 11,806 1,654 115,532
-------------- ------------ ------------ ------------ ------------
Total liabilities .......................... 207,114,854 20,462,230 13,310,455 3,724,954 58,468,451
-------------- ------------ ------------ ------------ ------------
NET ASSETS ........................................... $1,521,382,100 $167,388,166 $167,529,705 $27,074,602 $708,807,458
============== ============ ============ ============ ============
Net assets consist of:
Undistributed net investment income (Note 2) .. $4,882,008 $785,667 $1,960,998 -- $4,121,547
Accumulated undistributed net realized
gain on investments, futures, foreign currency
and forward foreign currency contracts ...... 286,447,188 7,467,441 21,202,387 $641,467 11,503,937
Unrealized appreciation on:
Investments ................................. 67,947,050 13,842,825 18,931,078 315,232 153,458,456
Futures contracts ........................... -- -- -- 65,634 --
Foreign currency and forward foreign currency
contracts ................................. 24 179 -- -- --
Capital shares at par value of $.01 (Note 4) .. 707,575 97,277 74,470 21,688 472,684
Additional paid-in capital .................... 1,161,398,255 145,194,777 125,360,772 26,030,581 539,250,834
-------------- ------------ ------------ ------------ ------------
Net assets .............................. $1,521,382,100 $167,388,166 $167,529,705 $27,074,602 $708,807,458
============== ============ ============ ============ ============
Capital shares outstanding (Note 4) .................. 70,757,532 9,727,676 7,446,999 2,168,839 47,268,444
-------------- ------------ ------------ ------------ ------------
Net asset value, offering price and redemption price
per share .......................................... $21.50 $17.21 $22.50 $12.48 $15.00
============== ============ ============ ============ ============
Investments in securities, at identified cost (Note 2) $1,628,138,660 $172,899,980 $161,504,947 $30,402,641 $612,170,817
============== ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 43
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
REAL ESTATE GROWTH AND GROWTH AND EQUITY-
SECURITIES VALUE INCOME INCOME INCOME
ASSETS TRUST TRUST TRUST TRUST TRUST
------------ ------------ ------------ -------------- ------------
<S> <C> <C> <C> <C> <C>
Investments in securities, at value (Includes a
repurchase agreement of $17,338,000 in the Value
Trust) (See accompanying portfolio of investments) $184,435,661 $159,014,173 $227,575,065 $1,667,087,644 $981,112,571
Receivable for forward foreign currency contracts
to sell (Notes 2 and 8) ........................... -- -- 80,269,910 -- --
Forward foreign currency contracts to buy, at value
(Cost: $55,099,058) (Notes 2 and 8) ................ -- -- 53,548,182 -- --
Cash ................................................. 4 590 726 180,857 494
Foreign currency (Cost: $1,270,804, $12,125, and
and $453 in the International Growth and Income,
Growth and Income and Equity-Income Trusts,
respectively) (Notes 2 and 8) ...................... -- -- 1,245,682 9,844 451
Receivables:
Investments sold .............................. -- 483,304 2,764,050 4,652,417 289,259
Fund shares sold .............................. 183,329 161,273 -- 1,080 138,300
Dividends and interest ........................ 814,837 173,412 1,609,899 2,078,442 2,181,169
Foreign tax withholding reclaims .............. -- 1,025 285,300 -- 20,884
Deferred organization expenses (Note 2) .............. -- -- 19,680 -- 275
Other assets ......................................... 372 268 403 3,873 2,199
------------ ------------ ------------ -------------- ------------
Total assets .............................. 185,434,203 159,834,045 367,318,897 1,674,014,157 983,745,602
------------ ------------ ------------ -------------- ------------
LIABILITIES
Forward foreign currency contracts to sell, at value
(Cost: $80,269,910) (Notes 2 and 8) ............... -- -- 77,559,789 -- --
Payables:
Forward foreign currency contracts to buy
(Notes 2 and 8) ............................. -- -- 55,099,058 -- --
Investments purchased ......................... 581,011 2,611,174 193,315 2,088,219 132,176
Fund shares redeemed .......................... 69,696 127 1,972,048 518,914 763,880
Dividend and interest withholding tax ......... -- 1,567 102,491 -- 20,009
Custodian fee ................................. 5,661 11,848 19,337 8,825 8,670
Securities lending ............................ 23,007,430 12,529,476 28,577,353 65,892,173 41,049,758
Other accrued expenses ........................ 11,212 8,229 19,052 118,748 66,522
------------ ------------ ------------ -------------- ------------
Total liabilities ......................... 23,675,010 15,162,421 163,542,443 68,626,879 42,041,015
------------ ------------ ------------ -------------- ------------
NET ASSETS ........................................... $161,759,193 $144,671,624 $203,776,454 $1,605,387,278 $941,704,587
============ ============ ============ ============== ============
Net assets consist of:
Undistributed net investment income (Note 2) .. $4,808,797 -- $4,240,740 $15,315,008 $18,699,879
Accumulated undistributed net realized
gain (loss) on investments, foreign currency
and forward foreign currency contracts ...... 16,198,159 ($599,054) 6,185,857 99,563,470 40,321,049
Unrealized appreciation (depreciation) on:
Investments ................................. 13,326,506 5,320,474 (3,674,391) 467,120,639 168,625,533
Foreign currency and forward foreign currency
contracts ................................. -- -- 1,083,017 (2,281) 60
Capital shares at par value of $.01 (Note 4) .. 80,592 97,703 185,164 672,005 546,250
Additional paid-in capital .................... 127,345,139 139,852,501 195,756,067 1,022,718,437 713,511,816
------------ ------------ ------------ -------------- ------------
Net assets .............................. $161,759,193 $144,671,624 $203,776,454 $1,605,387,278 $941,704,587
============ ============ ============ ============== ============
Capital shares outstanding (Note 4) ................. 8,059,178 9,770,288 18,516,347 67,200,511 54,625,052
------------ ------------ ------------ -------------- ------------
Net asset value, offering price and redemption price
per share .......................................... $20.07 $14.81 $11.01 $23.89 $17.24
============ ============ ============ ============== ============
Investments in securities, at identified cost (Note 2) $171,109,155 $153,693,699 $231,249,456 $1,199,967,005 $812,487,038
============ ============ ============ ============== ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 44
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
ASSET ASSET ASSET HIGH
BALANCED ALLOCATION ALLOCATION ALLOCATION YIELD
ASSETS TRUST TRUST TRUST TRUST TRUST
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investments in securities, at value (Includes
repurchase agreements of $21,701,000 and
$11,531,000 in the Conservative Asset Allocation
and High Yield Trusts, respectively)
(See accompanying portfolio of investments) ........ $183,736,970 $265,184,316 $663,132,000 $210,882,641 $104,982,047
Receivable for forward foreign currency contracts
to sell (Notes 2 and 8) ............................ 169 16,539 29,883 5,208 2,274,104
Forward foreign currency contracts to buy, at value
(Cost: $32,467, $58,664, $10,225 and $28,468
in the Aggressive, Moderate and Conservative
Asset Allocation and High Yield Trusts,
respectively) (Notes 2 and 8) ...................... -- 32,774 59,218 10,322 27,885
Cash ................................................. 17,905 10,958 114,055 617 239
Foreign currency (Cost: $8,680, $848,245, $1,561,832
and $216,509 in the Balanced, Aggressive,
Moderate and Conservative Asset Allocation
Trusts, respectively) (Notes 2 and 8) .............. 8,680 842,957 1,550,679 214,284 --
Receivables:
Investments sold .............................. 6,826,124 227,907 194,055 29,324 --
Fund shares sold .............................. 87,428 63,331 54 -- 178,623
Variation margin for open futures contracts ... -- 4,787 2,672 100 --
Dividends and interest ........................ 1,118,835 856,343 3,748,673 1,536,435 1,465,834
Foreign tax withholding reclaims .............. 23,953 24,058 50,662 9,432 --
Other assets ......................................... 427 617 1,550 512 170
------------ ------------ ------------ ------------ ------------
Total assets .............................. 191,820,491 267,264,587 668,883,501 212,688,875 108,928,902
------------ ------------ ------------ ------------ ------------
LIABILITIES
Forward foreign currency contracts to sell, at value
(Cost: $169, $16,539, $29,883, $5,208 and
$2,274,104 in the Balanced, Aggressive, Moderate
and Conservative Asset Allocation and High Yield
Trusts, respectively) (Notes 2 and 8) .............. 170 16,387 29,609 5,161 2,230,020
Payables:
Forward foreign currency contracts to buy
(Notes 2 and 8) ............................. -- 32,467 58,664 10,225 28,468
Investments purchased ......................... 4,426,008 16,387 5,776,970 3,231,750 3,412,618
Fund shares redeemed .......................... 27,124 -- 62,617 317,086 --
Variation margin for open futures contracts ... -- -- -- 75 --
Dividend and interest withholding tax ......... 1,756 6,815 13,739 2,724 14,277
Custodian fee ................................. 10,564 28,486 31,760 19,299 1,618
Securities lending ............................ 10,297,248 23,611,834 53,721,023 4,738,674 10,489,036
Other accrued expenses ........................ 12,978 18,982 47,479 15,759 5,210
------------ ------------ ------------ ------------ ------------
Total liabilities .......................... 14,775,848 23,731,358 59,741,861 8,340,753 16,181,247
------------ ------------ ------------ ------------ ------------
NET ASSETS ........................................... $177,044,643 $243,533,229 $609,141,640 $204,348,122 $92,747,655
============ ============ ============ ============ ============
Net assets consist of:
Undistributed net investment income (Note 2) .. $4,637,642 $4,765,263 $20,941,772 $8,844,386 $26,259
Accumulated undistributed net realized
gain on investments, futures, foreign currency
and forward foreign currency contracts ...... 20,294,566 23,728,297 46,265,268 9,582,317 273,457
Unrealized appreciation (depreciation) on:
Investments ................................ 10,890,674 42,289,376 80,861,123 14,740,056 974,604
Futures contracts .......................... -- (107,279) (24,906) 1,772 --
Foreign currency and forward foreign currency
contracts ................................ (161) (5,883) (12,904) (2,314) 43,163
Capital shares at par value of $.01 (Note 4) .. 91,592 169,570 470,358 173,416 68,414
Additional paid-in capital .................... 141,130,330 172,693,885 460,640,929 171,008,489 91,361,758
------------ ------------ ------------ ------------ ------------
Net assets .............................. $177,044,643 $243,533,229 $609,141,640 $204,348,122 $92,747,655
============ ============ ============ ============ ============
Capital shares outstanding (Note 4) .................. 9,159,210 16,957,017 47,035,794 17,341,644 6,841,409
------------ ------------ ------------ ------------ ------------
Net asset value, offering price and redemption price
per share .......................................... $19.33 $14.36 $12.95 $11.78 $13.56
============ ============ ============ ============ ============
Investments in securities, at identified cost (Note 2) $172,846,296 $222,894,940 $582,270,877 $196,142,585 $104,007,443
============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 45
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL CAPITAL INVESTMENT U.S.
STRATEGIC GOVERNMENT GROWTH QUALITY GOVERNMENT
BOND BOND BOND BOND SECURITIES
ASSETS TRUST TRUST TRUST TRUST TRUST
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investments in securities, at value (Includes
repurchase agreements of $8,461,000
and $68,272,000 in the Capital Growth
Bond and U.S. Government Securities
Trusts, respectively) (See accompanying
portfolio of investments) .......................... $475,639,758 $207,979,689 $56,164,078 $233,996,126 $315,578,931
Receivable for forward foreign currency contracts
to sell (Notes 2 and 8) ............................ 23,064,790 161,544,240 -- -- --
Forward foreign currency contracts to buy, at value
(Cost: $4,400,798 and $68,893,676 in the Strategic
Bond and Global Government Bond Trusts,
respectively) (Notes 2 and 8) ...................... 4,327,103 66,730,638 -- -- --
Cash ................................................. 1,907 474 -- 839 213
Foreign currency (Cost: $129 and $1,438,425 in the
Strategic Bond and Global Government Bond Trusts,
respectively) (Notes 2 and 8) ...................... 127 1,427,543 -- -- --
Receivables:
Fund shares sold .............................. 327,215 57,006 6,224 77,769 1,770,693
Dividends and interest ........................ 6,091,249 4,246,100 781,411 3,412,921 1,946,657
Foreign tax withholding reclaims .............. 7,204 17,566 -- -- --
Deferred organization expenses (Note 2) .............. 413 -- -- -- --
Other assets ......................................... 842 547 124 428 574
------------ ------------ ------------ ------------ ------------
Total assets .............................. 509,460,608 442,003,803 56,951,837 237,488,083 319,297,068
------------ ------------ ------------ ------------ ------------
LIABILITIES
Forward foreign currency contracts to sell, at
value (Cost: $23,064,790 and $161,544,240 in the
Strategic Bond and Global Government Bond Trusts,
respectively) (Notes 2 and 8) ...................... 22,620,808 156,925,238 -- -- --
Payables:
Forward foreign currency contracts to buy
(Notes 2 and 8) ............................. 4,400,798 68,893,676 -- -- --
Investments purchased ......................... 41,020,970 -- -- 286,633 38,354,768
Fund shares redeemed .......................... 32 -- 94,754 -- 40,157
Dividend and interest withholding tax ......... 1,340 29,552 -- 773 --
Custodian fee ................................. 6,854 17,389 2,634 5,871 4,200
Securities lending ............................ 75,776,050 -- 2,860,600 48,636,883 29,590,565
Other accrued expenses ........................ 25,743 20,825 3,904 12,980 17,548
Deferred mortgage dollar roll income ................. 17,805 -- -- -- 12,495
------------ ------------ ------------ ------------ ------------
Total liabilities .......................... 143,870,400 225,886,680 2,961,892 48,943,140 68,019,733
------------ ------------ ------------ ------------ ------------
NET ASSETS ........................................... $365,590,208 $216,117,123 $53,989,945 $188,544,943 $251,277,335
============ ============ ============ ============ ============
Net assets consist of:
Undistributed net investment income (Note 2) .. $22,584,781 $12,595,749 $3,103,100 $11,620,376 $13,028,158
Accumulated undistributed net realized
gain (loss) on investments, foreign currency
and forward foreign currency contracts ...... 3,714,537 5,850,749 (857,064) (3,114,002) (3,395,966)
Unrealized appreciation (depreciation) on:
Investments ................................. 8,178,003 (1,037,739) 1,690,900 3,710,810 3,557,968
Foreign currency and forward foreign currency
contracts ................................. 358,245 2,319,116 -- -- --
Capital shares at par value of $.01 (Note 4) .. 295,371 153,622 45,580 155,492 186,164
Additional paid-in capital .................... 330,459,271 196,235,626 50,007,429 176,172,267 237,901,011
------------ ------------ ------------ ------------ ------------
Net assets .............................. $365,590,208 $216,117,123 $53,989,945 $188,544,943 $251,277,335
============ ============ ============ ============ ============
Capital shares outstanding (Note 4) .................. 29,537,067 15,362,187 4,557,940 15,549,187 18,616,392
------------ ------------ ------------ ------------ ------------
Net asset value, offering price and redemption price
per share .......................................... $12.38 $14.07 $11.85 $12.13 $13.50
============ ============ ============ ============ ============
Investments in securities, at identified cost (Note 2) $467,461,755 $209,017,428 $54,473,178 $230,285,316 $312,020,963
============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 46
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE
MONEY AGGRESSIVE GROWTH BALANCED MODERATE CONSERVATIVE
MARKET 1000 820 640 460 280
ASSETS TRUST TRUST TRUST TRUST TRUST TRUST
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Investments in securities,
at value (See accompanying
portfolio of investments) ....... $434,588,104 $49,101,880 $217,156,949 $186,651,479 $52,745,629 $19,750,019
Cash ............................... 380 2,428 709 1,823 -- --
Receivables:
Investments sold ............ -- 172,991 552,076 260,174 -- 90,257
Fund shares sold ............ 4,772,749 4,771 -- 427,702 391,618 847
Dividends and interest ...... 386,542 99,566 1,510,818 1,170,581 330,615 --
From adviser ................ -- 1,205 11,431 8,052 2,276 838
Other assets ....................... 1,072 98 427 349 101 33
------------ ------------ ------------ ------------ ------------ ------------
Total assets ............ 439,748,847 49,382,939 219,232,410 188,520,160 53,470,239 19,841,994
------------ ------------ ------------ ------------ ------------ ------------
LIABILITIES
Payables:
Investments purchased ....... -- 264,398 2,003,667 1,858,457 722,233 91,105
Fund shares redeemed ........ -- 12,931 -- -- -- 15
Dividends ................... -- -- 59,227 -- -- --
Custodian fee ............... 2,087 -- -- -- -- --
Other accrued expenses ...... 33,222 1,083 11,859 8,401 2,376 854
------------ ------------ ------------ ------------ ------------ ------------
Total liabilities ........ 35,309 278,412 2,074,753 1,866,858 724,609 91,974
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS ......................... $439,713,538 $49,104,527 $217,157,657 $186,653,302 $52,745,630 $19,750,020
============ ============ ============ ============ ============ ============
Net assets consist of:
Undistributed net realized
gain on investments ....... -- $1,526,530 $5,455,773 $2,682,201 $341,434 $115,432
Unrealized appreciation
on investments ............ -- 229,927 2,198,847 3,474,631 1,263,874 471,143
Capital shares at par value
of $.01 (Note 4) .......... $439,714 36,446 157,679 137,671 39,513 15,175
Additional paid-in capital .. 439,273,824 47,311,624 209,345,358 180,358,799 51,100,809 19,148,270
------------ ------------ ------------ ------------ ------------ ------------
Net assets ............ $439,713,538 $49,104,527 $217,157,657 $186,653,302 $52,745,630 $19,750,020
============ ============ ============ ============ ============ ============
Capital shares outstanding (Note 4) 43,971,354 3,644,612 15,767,894 13,767,095 3,951,276 1,517,524
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, offering price and
redemption price per share ....... $10.00 $13.47 $13.77 $13.56 $13.35 $13.01
============ ============ ============ ============ ============ ============
Investments in securities,
at identified cost (Note 2) ...... $434,588,104 $48,871,953 $214,958,102 $183,176,848 $51,481,755 $19,278,876
============ ============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE> 47
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACIFIC RIM PILGRIM
EMERGING SCIENCE & INTERNATIONAL EMERGING BAXTER
MARKETS TECHNOLOGY SMALL CAP GROWTH GROWTH
TRUST TRUST TRUST TRUST TRUST
------------ ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest (Net of $1,470 withholding tax in the
Pacific Rim Emerging Markets Trust) .................. $159,340 $204,735 $1,321,030 $1,709,880 $309,733
Dividends (Net of $34,517, $667 and $133,750
withholding tax in the Pacific Rim Emerging
Markets, Science & Technology and
International Small Cap Trusts, respectively) ........ 398,186 37,398 1,049,249 472,409 34,078
------------ ----------- ----------- ------------ -----------
Total income ................................... 557,526 242,133 2,370,279 2,182,289 343,811
------------ ----------- ----------- ------------ -----------
Expenses:
Investment adviser fee (Note 6) ........................ 229,135 369,324 1,347,708 2,331,739 502,149
Custodian fee .......................................... 148,535 48,296 234,838 96,298 55,101
Audit and legal fees ................................... 2,331 4,588 14,732 21,511 6,132
Registration and filing fees ........................... 404 762 335 3,613 657
Trustees fees and expenses (Note 7) .................... 840 1,182 3,855 7,063 1,267
Miscellaneous .......................................... 1,771 336 1,385 2,003 347
------------ ----------- ----------- ------------ -----------
Total expenses ................................. 383,016 424,488 1,602,853 2,462,227 565,653
------------ ----------- ----------- ------------ -----------
Net investment income (loss) ................... 174,510 (182,355) 767,426 (279,938) (221,842)
------------ ----------- ----------- ------------ -----------
Realized and unrealized gain (loss) on investments,
foreign currency and forward foreign currency contracts:
Net realized gain (loss) on:
Investment transactions ............................... (338,181) 187,775 (3,601,942) 4,042,230 (4,090,189)
Foreign currency and forward foreign
currency contracts .................................. (386,822) -- (318,266) -- --
Change in unrealized appreciation (depreciation) on:
Investments ........................................... (10,316,270) (1,610,969) 3,451,228 32,648,479 6,765,675
Translation of foreign currency and
forward foreign currency contracts .................. (85,137) -- (37,787) -- --
------------ ----------- ----------- ------------ -----------
Net gain (loss) on investments, foreign currency
and forward foreign currency contracts ....... (11,126,410) (1,423,194) (506,767) 36,690,709 2,675,486
------------ ----------- ----------- ------------ -----------
Net increase (decrease) in net assets resulting
from operations ......................................... ($10,951,900) ($1,605,549) $260,659 $36,410,771 $2,453,644
============ =========== =========== ============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE> 48
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL
SMALL/MID INTERNATIONAL WORLDWIDE GLOBAL COMPANY
CAP STOCK GROWTH EQUITY VALUE
TRUST TRUST TRUST TRUST TRUST*
------------ ----------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest ............................................... $781,193 $377,295 $150,908 $682,899 $58,234
Dividends (Net of $11,110, $153,973, $8,322,
$1,214,018 and $158 withholding tax in the
Small/Mid Cap, International Stock, Worldwide
Growth, Global Equity and Small Company Value
Trusts, respectively) ............................... 767,350 1,212,306 90,103 15,678,817 163,162
------------ ----------- --------- ------------ -----------
Total income ................................... 1,548,543 1,589,601 241,011 16,361,716 221,396
------------ ----------- --------- ------------ -----------
Expenses:
Investment adviser fee (Note 6) ....................... 2,145,327 860,656 124,952 7,256,254 134,688
Custodian fee .......................................... 71,100 259,094 37,911 731,440 14,599
Audit and legal fees ................................... 30,063 9,512 1,638 107,288 2,730
Registration and filing fees ........................... 1,113 1,062 271 12,252 20
Trustees fees and expenses (Note 7) ................... 7,150 2,117 423 25,356 255
Miscellaneous .......................................... 4,211 627 80 17,767 100
------------ ----------- --------- ------------ -----------
Total expenses ................................. 2,258,964 1,133,068 165,275 8,150,357 152,392
------------ ----------- --------- ------------ -----------
Net investment income (loss) ................... (710,421) 456,533 75,736 8,211,359 69,004
------------ ----------- --------- ------------ -----------
Realized and unrealized gain (loss) on investments, foreign
currency and forward foreign currency contracts:
Net realized gain (loss) on:
Investment transactions ............................... 5,771,995 798,600 63,299 48,944,044 (762,160)
Foreign currency and forward foreign
currency contracts .................................. -- (160,401) (26,045) 7,211,837 --
Change in unrealized appreciation (depreciation) on:
Investments ........................................... 22,179,663 (4,119,284) 771,847 85,480,417 (1,242,712)
Translation of foreign currency and
forward foreign currency contracts .................. -- (5,560) (428) 703,851 --
------------ ----------- --------- ------------ -----------
Net gain (loss) on investments, foreign currency
and forward foreign currency contracts ....... 27,951,658 (3,486,645) 808,673 142,340,149 (2,004,872)
------------ ----------- --------- ------------ -----------
Net increase (decrease) in net assets resulting
from operations ......................................... $27,241,237 ($3,030,112) $884,409 $150,551,508 ($1,935,868)
============ =========== ========= ============ ===========
</TABLE>
* For the period October 1, 1997 (commencement
of operations) to December 31, 1997.
The accompanying notes are an integral part of the financial statements.
10
<PAGE> 49
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUANTITATIVE EQUITY BLUE CHIP
EQUITY GROWTH EQUITY INDEX GROWTH
TRUST TRUST TRUST TRUST TRUST
------------- ----------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest ................................................. $3,180,530 $884,070 $403,368 $576,770 $2,916,575
Dividends (Net of $91,125, $10,961, $498 and
$45,810 withholding tax in the Equity, Growth, Equity
Index and Blue Chip Growth Trusts, respectively) ....... 13,270,385 974,453 2,211,869 105,779 6,647,074
------------- ----------- ----------- ---------- ------------
Total income ..................................... 16,450,915 1,858,523 2,615,237 682,549 9,563,649
------------- ----------- ----------- ---------- ------------
Expenses:
Investment adviser fee (Note 6) .......................... 10,703,211 935,029 913,996 42,212 5,156,008
Custodian fee ............................................ 509,881 84,752 67,196 51,041 179,163
Audit and legal fees ..................................... 192,851 14,465 12,326 1,728 73,598
Registration and filing fees ............................. 17,459 1,130 2,055 296 6,934
Amortization of deferred organization
expenses (Note 2) ...................................... -- -- -- -- 1,896
Trustees fees and expenses (Note 7) ...................... 44,799 3,448 3,967 525 17,541
Miscellaneous ............................................ 15,188 1,384 2,459 620 5,413
------------- ----------- ----------- ---------- ------------
Expenses before reimbursement by
investment adviser .................................... 11,483,389 1,040,208 1,001,999 96,422 5,440,553
Reimbursement of expenses by
investment adviser (Note 6) ........................... -- -- 347,760 28,392 --
------------- ----------- ----------- ---------- ------------
Net expenses ..................................... 11,483,389 1,040,208 654,239 68,030 5,440,553
------------- ----------- ----------- ---------- ------------
Net investment income ............................ 4,967,526 818,315 1,960,998 614,519 4,123,096
------------- ----------- ----------- ---------- ------------
Realized and unrealized gain on investments, futures,
foreign currency and forward foreign currency contracts:
Net realized gain (loss) on:
Investment transactions ................................. 288,434,853 8,261,706 21,256,016 111,548 11,907,336
Futures contracts ....................................... -- -- -- 3,580,341 (94)
Foreign currency and forward foreign
currency contracts .................................... (79,750) (32,648) -- -- --
Change in unrealized appreciation (depreciation) on:
Investments ............................................. (49,085,206) 11,548,165 9,038,807 292,487 112,919,340
Futures contracts ....................................... -- -- -- (201,241) --
Translation of foreign currency and
forward foreign currency contracts .................... 2 188 -- -- --
------------- ----------- ----------- ---------- ------------
Net gain on investments, futures, foreign currency
and forward foreign currency contracts ......... 239,269,899 19,777,411 30,294,823 3,783,135 124,826,582
------------- ----------- ----------- ---------- ------------
Net increase in net assets resulting
from operations ........................................... $244,237,425 $20,595,726 $32,255,821 $4,397,654 $128,949,678
============= =========== =========== ========== ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE> 50
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
REAL ESTATE GROWTH AND GROWTH AND EQUITY-
SECURITIES VALUE INCOME INCOME INCOME
TRUST TRUST TRUST TRUST TRUST
----------- ---------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest (Net of $168 withholding tax in the
International Growth and Income Trust) ............... $113,172 $535,884 $2,881,953 $1,639,350 $4,022,775
Dividends (Net of $4,185 $496,461, $133,085
and $188,210 withholding tax in the Value,
International Growth and Income, Growth
and Income and Equity-Income Trusts,
respectively) ........................................ 6,917,965 1,069,802 3,746,368 24,298,831 21,480,364
----------- ---------- ------------ ------------- -------------
Total income ................................... 7,031,137 1,605,686 6,628,321 25,938,181 25,503,139
----------- ---------- ------------ ------------- -------------
Expenses:
Investment adviser fee (Note 6) ........................ 831,191 523,446 1,965,899 10,037,637 6,141,959
Custodian fee .......................................... 60,701 91,918 314,921 328,285 254,913
Audit and legal fees ................................... 11,600 8,041 26,913 176,061 99,915
Registration and filing fees ........................... 1,807 944 1,761 16,471 9,122
Amortization of deferred organization
expenses (Note 2) .................................... -- -- 6,153 -- 2,004
Trustees fees and expenses (Note 7) .................... 3,450 1,534 8,471 43,008 24,145
Miscellaneous .......................................... 3,314 377 3,128 13,733 8,162
----------- ---------- ------------ ------------- -------------
Expenses before reimbursement by
investment adviser .................................. 912,063 626,260 2,327,246 10,615,195 6,540,220
Reimbursement of expenses by
investment adviser (Note 6) ......................... 316,025 -- -- -- --
----------- ---------- ------------ ------------- -------------
Net expenses ................................... 596,038 626,260 2,327,246 10,615,195 6,540,220
----------- ---------- ------------ ------------- -------------
Net investment income .......................... 6,435,099 979,426 4,301,075 15,322,986 18,962,919
----------- ---------- ------------ ------------- -------------
Realized and unrealized gain (loss) on investments,
foreign currency and forward foreign currency contracts:
Net realized gain (loss) on:
Investment transactions ............................... 15,106,323 2,848,645 6,819,325 99,563,470 40,834,683
Foreign currency and forward foreign
currency contracts .................................. -- -- (7,637) 1,285 (76,448)
Change in unrealized appreciation (depreciation) on:
Investments ........................................... 1,710,688 5,320,474 (11,806,866) 247,910,751 138,364,867
Translation of foreign currency and
forward foreign currency contracts .................. -- -- 594,255 (1,256) 245
----------- ---------- ------------ ------------- -------------
Net gain (loss) on investments, foreign currency
and forward foreign currency contracts ....... 16,817,011 8,169,119 (4,400,923) 347,474,250 179,123,347
----------- ---------- ------------ ------------- -------------
Net increase (decrease) in net assets resulting
from operations ......................................... $23,252,110 $9,148,545 ($99,848) $362,797,236 $198,086,266
=========== ========== ============ ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE> 51
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
ASSET ASSET ASSET HIGH
BALANCED ALLOCATION ALLOCATION ALLOCATION YIELD
TRUST TRUST TRUST TRUST TRUST
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest (Net of $679 and $16,035 withholding
tax in the Conservative Asset Allocation and High
Yield Trusts, respectively) ............................ $4,187,274 $4,157,072 $21,036,541 $9,935,599 $3,333,180
Dividends (Net of $48,602, $116,448, $201,136
and $34,328 withholding tax in the Balanced and
Aggressive, Moderate and Conservative Asset
Allocation Trusts, respectively) ....................... 1,875,262 2,649,322 4,762,828 780,796 26,874
----------- ----------- ----------- ----------- ----------
Total income ..................................... 6,062,536 6,806,394 25,799,369 10,716,395 3,360,054
----------- ----------- ----------- ----------- ----------
Expenses:
Investment adviser fee (Note 6) .......................... 1,261,070 1,766,662 4,584,121 1,521,047 314,373
Custodian fee ............................................ 99,333 314,581 469,614 246,778 37,975
Audit and legal fees ..................................... 13,901 33,308 84,971 28,060 5,159
Registration and filing fees ............................. 2,479 3,297 8,955 2,953 666
Trustees fees and expenses (Note 7) ...................... 5,099 7,242 18,460 6,076 1,128
Miscellaneous ............................................ 3,647 3,038 8,791 2,213 409
----------- ----------- ----------- ----------- ----------
Total expenses ................................... 1,385,529 2,128,128 5,174,912 1,807,127 359,710
----------- ----------- ----------- ----------- ----------
Net investment income ............................ 4,677,007 4,678,266 20,624,457 8,909,268 3,000,344
----------- ----------- ----------- ----------- ----------
Realized and unrealized gain on investments, futures,
foreign currency and forward foreign currency contracts:
Net realized gain (loss) on:
Investment transactions ................................. 20,430,952 21,787,441 44,169,728 9,545,017 731,169
Futures contracts ....................................... -- 2,190,877 2,745,819 38,629 --
Foreign currency and forward foreign
currency contracts .................................... (95,635) (128,171) (177,501) (36,148) 20,337
Change in unrealized appreciation (depreciation) on:
Investments ............................................. 400,364 12,435,747 22,649,867 3,370,336 974,604
Futures contracts ....................................... -- (63,205) 92,982 20,122 --
Translation of foreign currency and
forward foreign currency contracts .................... (161) (10,440) (16,641) (2,821) 43,163
----------- ----------- ----------- ----------- ----------
Net gain on investments, futures, foreign currency
and forward foreign currency contracts ......... 20,735,520 36,212,249 69,464,254 12,935,135 1,769,273
----------- ----------- ----------- ----------- ----------
Net increase in net assets resulting
from operations ............................................ $25,412,527 $40,890,515 $90,088,711 $21,844,403 $4,769,617
=========== =========== =========== =========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE> 52
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL CAPITAL INVESTMENT U.S.
STRATEGIC GOVERNMENT GROWTH QUALITY GOVERNMENT
BOND BOND BOND BOND SECURITIES
TRUST TRUST TRUST TRUST TRUST
----------- ------------ ---------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest (Net of $35,374 withholding tax
in the Global Government Bond Trust) ................. $23,904,254 $15,631,031 $3,304,323 $12,713,368 $14,161,329
Mortgage dollar rolls .................................. 396,169 -- -- -- 894,225
Dividends .............................................. 16,999 -- -- -- --
----------- ------------ ---------- ----------- ------------
Total income ................................... 24,317,422 15,631,031 3,304,323 12,713,368 15,055,554
----------- ------------ ---------- ----------- ------------
Expenses:
Investment adviser fee (Note 6) ....................... 2,240,478 1,837,451 315,701 1,047,782 1,401,568
Custodian fee .......................................... 228,126 255,765 30,794 117,680 102,724
Audit and legal fees ................................... 37,795 30,912 4,196 21,627 28,727
Registration and filing fees ........................... 2,808 2,836 754 1,961 2,991
Amortization of deferred organization
expenses (Note 2) ................................... 3,005 -- -- -- --
Trustees fees and expenses (Note 7) ................... 8,801 6,898 1,576 4,533 6,127
Miscellaneous .......................................... 2,151 12,643 478 1,775 2,120
----------- ------------ ---------- ----------- ------------
Expenses before reimbursement by
investment adviser .................................. 2,523,164 2,146,505 353,499 1,195,358 1,544,257
Reimbursement of expenses by
investment adviser (Note 6) ........................ -- -- 110,604 -- --
----------- ------------ ---------- ----------- ------------
Net expenses ................................... 2,523,164 2,146,505 242,895 1,195,358 1,544,257
----------- ------------ ---------- ----------- ------------
Net investment income .......................... 21,794,258 13,484,526 3,061,428 11,518,010 13,511,297
----------- ------------ ---------- ----------- ------------
Realized and unrealized gain (loss) on investments,
foreign currency and forward foreign currency contracts:
Net realized gain (loss) on:
Investment transactions ............................... 4,357,008 13,533,542 48,206 560,958 (1,285,791)
Foreign currency and forward foreign
currency contracts .................................. 474,566 (8,569,143) -- -- --
Change in unrealized appreciation (depreciation) on:
Investments ........................................... 2,884,064 (14,618,789) 1,026,927 3,072,046 5,453,837
Translation of foreign currency and
forward foreign currency contracts .................. 556,273 2,134,019 -- -- --
----------- ------------ ---------- ----------- ------------
Net gain (loss) on investments, foreign currency
and forward foreign currency contracts ....... 8,271,911 (7,520,371) 1,075,133 3,633,004 4,168,046
----------- ------------ ---------- ----------- ------------
Net increase in net assets resulting
from operations .......................................... $30,066,169 $5,964,155 $4,136,561 $15,151,014 $17,679,343
=========== ============ ========== =========== ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE> 53
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE
MONEY AGGRESSIVE GROWTH BALANCED MODERATE CONSERVATIVE
MARKET 1000 820 640 460 280
TRUST TRUST* TRUST* TRUST* TRUST* TRUST*
----------- ---------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest .......................... $23,822,868 -- -- -- -- --
Income distributions received ..... -- $40,644 $1,638,443 $1,923,233 $692,090 $255,536
----------- ---------- ---------- ---------- ---------- --------
Total income ................ 23,822,868 40,644 1,638,443 1,923,233 692,090 255,536
----------- ---------- ---------- ---------- ---------- --------
Expenses:
Investment adviser fee (Note 6) ... 2,134,875 -- -- -- -- --
Custodian fee ..................... 113,860 1,220 5,321 4,284 1,214 441
Audit and legal fees .............. 52,106 3,012 13,154 10,562 3,003 1,091
Registration and filing fees ...... 4,749 496 2,158 1,745 493 178
Trustee fees and expenses
(Note 7) ........................ 12,486 775 3,324 2,558 749 275
Miscellaneous ..................... 7,263 124 527 415 120 46
----------- ---------- ---------- ---------- ---------- --------
Expenses before reimbursement
by investment adviser ........... 2,325,339 5,627 24,484 19,564 5,579 2,031
Reimbursement of expenses by
investment adviser (Note 6) ..... -- 5,627 24,484 19,564 5,579 2,031
----------- ---------- ---------- ---------- ---------- --------
Net expenses ................ 2,325,339 -- -- -- -- --
----------- ---------- ---------- ---------- ---------- --------
Net investment income ....... 21,497,529 40,644 1,638,443 1,923,233 692,090 255,536
----------- ---------- ---------- ---------- ---------- --------
Realized and unrealized
gain on investments:
Net realized gain on investments .. -- 1,526,530 5,455,773 2,682,201 341,434 115,432
Capital gain distributions received -- 234,940 623,851 519,499 141,843 52,417
Change in unrealized
appreciation on investments ..... -- 229,927 2,198,847 3,474,631 1,263,874 471,143
----------- ---------- ---------- ---------- ---------- --------
Net gain on investments ...... -- 1,991,397 8,278,471 6,676,331 1,747,151 638,992
----------- ---------- ---------- ---------- ---------- --------
Net increase in net assets resulting
from operations .................... $21,497,529 $2,032,041 $9,916,914 $8,599,564 $2,439,241 $894,528
=========== ========== ========== ========== ========== ========
</TABLE>
* For the period January 7, 1997 (commencement
of operations) to December 31, 1997.
The accompanying notes are an integral part of the financial statements.
15
<PAGE> 54
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACIFIC RIM SCIENCE & INTERNATIONAL
EMERGING MARKETS TECHNOLOGY SMALL CAP
TRUST TRUST TRUST
----------------------------- ------------- -----------------------------
YEAR YEAR 1/01/97* YEAR 3/04/96*
ENDED ENDED TO ENDED TO
12/31/97 12/31/96 12/31/97 12/31/97 12/31/96
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income (loss) ........ $174,510 $150,524 ($182,355) $767,426 $413,084
Net realized gain (loss) on:
Investment transactions ............ (338,181) 864,129 187,775 (3,601,942) (874,882)
Foreign currency and forward
foreign currency contracts ....... (386,822) (96,048) -- (318,266) (31,945)
Change in unrealized
appreciation (depreciation) on:
Investments ........................ (10,316,270) 640,822 (1,610,969) 3,451,228 5,179,280
Foreign currency and forward
foreign currency contracts ....... (85,137) (6,254) -- (37,787) 565
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations .......... (10,951,900) 1,553,173 (1,605,549) 260,659 4,686,102
Distribution to
shareholders from:
Net investment income ............. -- (151,471) -- (56,628) (356,506)
Net realized gains on
investments and foreign
currency transactions .......... -- (782,550) (187,775) -- --
Distribution to shareholders:
In excess of net investment income -- (19,701) -- -- --
In excess of net realized gains
on investments and foreign
currency transactions ........... (72,382) (4,884) (873,300) -- --
Increase in net assets from
capital share transactions (Note 4) 11,633,402 9,589,538 70,014,200 31,153,786 92,888,297
------------- ------------- ------------- ------------- -------------
Increase in net assets ............... 609,120 10,184,105 67,347,576 31,357,817 97,217,893
Net assets at beginning of period .... 23,241,204 13,057,099 -- 97,217,893 --
------------- ------------- ------------- ------------- -------------
Net assets at end of period .......... $23,850,324 $23,241,204 $67,347,576 $128,575,710 $97,217,893
============= ============= ============= ============= =============
Undistributed net
investment income (loss) .......... ($92,260) -- -- $444,269 ($4,890)
============= ============= ============= ============= =============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
16
<PAGE> 55
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING PILGRIM SMALL/MID
GROWTH BAXTER GROWTH CAP
TRUST TRUST TRUST
------------- ------------- -----------------------------
1/01/97* 1/01/97* YEAR 3/04/96*
TO TO ENDED TO
12/31/97 12/31/97 12/31/97 12/31/96
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment loss ................. ($279,938) ($221,842) ($710,421) ($14,719)
Net realized gain (loss) on
investment transactions ........... 4,042,230 (4,090,189) 5,771,995 (6,951,840)
Change in unrealized
appreciation on investments ....... 32,648,479 6,765,675 22,179,663 10,573,628
------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations ......... 36,410,771 2,453,644 27,241,237 3,607,069
Increase in net assets from
capital share transactions (Note 4) 239,363,310 90,881,502 65,073,710 172,454,496
------------- ------------- ------------- -------------
Increase in net assets .............. 275,774,081 93,335,146 92,314,947 176,061,565
Net assets at beginning of period ... -- -- 176,061,565 --
------------- ------------- ------------- -------------
Net assets at end of period ......... $275,774,081 $93,335,146 $268,376,512 $176,061,565
============= ============= ============= =============
Undistributed net
investment loss ................... -- ($221,842) -- --
============= ============= ============= =============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
17
<PAGE> 56
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL
INTERNATIONAL WORLDWIDE GLOBAL COMPANY
STOCK GROWTH EQUITY VALUE
TRUST TRUST TRUST TRUST
------------- ------------- ----------------------------- -------------
1/01/97* 1/01/97* YEAR YEAR 10/01/97*
TO TO ENDED ENDED TO
12/31/97 12/31/97 12/31/97 12/31/96 12/31/97
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income ................ $456,533 $75,736 $8,211,359 $5,359,674 $69,004
Net realized gain (loss) on:
Investment transactions ............ 798,600 63,299 48,944,044 97,559,315 (762,160)
Foreign currency and forward
foreign currency contracts ....... (160,401) (26,045) 7,211,837 (12,440,807) --
Change in unrealized
appreciation (depreciation) on:
Investments ........................ (4,119,284) 771,847 85,480,417 (8,902,810) (1,242,712)
Foreign currency and forward
foreign currency contracts ....... (5,560) (428) 703,851 (955,166) --
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations .......... (3,030,112) 884,409 150,551,508 80,620,206 (1,935,868)
Distribution to
shareholders from:
Net investment income ............. (355,257) (57,051) (10,702,845) (11,270,400) --
Net realized gains on investments
and foreign currency transactions (638,199) (37,254) (62,223,834) -- --
Distribution to shareholders:
In excess of net investment income -- (809) -- -- --
In excess of net realized gains
on investments and foreign
currency transactions ........... (993,554) (113,582) -- -- --
Increase in net assets from
capital share transactions (Note 4) 150,270,019 23,586,322 63,945,517 9,309,957 69,026,952
------------- ------------- ------------- ------------- -------------
Increase in net assets ............... 145,252,897 24,262,035 141,570,346 78,659,763 67,091,084
Net assets at beginning of period .... -- -- 726,842,401 648,182,638 --
------------- ------------- ------------- ------------- -------------
Net assets at end of period .......... $145,252,897 $24,262,035 $868,412,747 $726,842,401 $67,091,084
============= ============= ============= ============= =============
Undistributed net
investment income .................. $9,928 ($7,360) $15,666,642 $10,924,122 $56,115
============= ============= ============= ============= =============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
18
<PAGE> 57
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUANTITATIVE
EQUITY GROWTH EQUITY
TRUST TRUST TRUST
--------------------------------- ---------------------------- ---------------------------
YEAR YEAR YEAR 7/15/96* YEAR YEAR
ENDED ENDED ENDED TO ENDED ENDED
12/31/97 12/31/96 12/31/97 12/31/96 12/31/97 12/31/96
--------------- --------------- ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income ....... $4,967,526 $8,238,170 $818,315 $361,643 $1,960,998 $1,390,103
Net realized gain (loss) on:
Investment
transactions ............ 288,434,853 250,761,937 8,261,706 (791,177) 21,256,016 10,029,581
Foreign currency and
forward foreign
currency contracts ..... (79,750) (373,530) (32,648) (5,992) -- --
Change in unrealized
appreciation
(depreciation) on:
Investments ............... (49,085,206) (48,495,014) 11,548,165 2,294,660 9,038,807 1,171,645
Foreign currency and
forward foreign
currency contracts ..... 2 605 188 (9) -- --
--------------- --------------- ------------- ------------ ------------ ------------
Net increase in net
assets resulting from
operations ................ 244,237,425 210,132,168 20,595,726 1,859,125 32,255,821 12,591,329
Distribution to
shareholders from:
Net investment income ..... (8,208,495) (4,695,040) (2,288) (356,451) -- (2,224,864)
Net realized gains on
investments and foreign
currency transactions .. (250,024,832) (98,365,329) -- -- -- (11,536,168)
Distribution to shareholders:
In excess of net
realized gains on
investments and foreign
currency transactions . -- -- -- -- -- (97,061)
Increase in net assets
from capital share
transactions (Note 4) ..... 189,916,612 249,589,386 89,987,989 55,304,065 43,374,187 32,170,533
--------------- --------------- ------------- ------------ ------------ ------------
Increase in net assets ...... 175,920,710 356,661,185 110,581,427 56,806,739 75,630,008 30,903,769
Net assets at beginning
of period ................. 1,345,461,390 988,800,205 56,806,739 -- 91,899,697 60,995,928
--------------- --------------- ------------- ------------ ------------ ------------
Net assets at end
of period ................. $1,521,382,100 $1,345,461,390 $167,388,166 $56,806,739 $167,529,705 $91,899,697
=============== =============== ============= ============ ============ ============
Undistributed net
investment income ......... $4,882,008 $8,208,496 $785,667 $2,288 $1,960,998 --
=============== =============== ============= ============ ============ ============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
19
<PAGE> 58
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY BLUE CHIP REAL ESTATE
INDEX GROWTH SECURITIES
TRUST TRUST TRUST
-------------------------- ----------------------------- --------------------------
YEAR 2/14/96* YEAR YEAR YEAR YEAR
ENDED TO ENDED ENDED ENDED ENDED
12/31/97 12/31/96 12/31/97 12/31/96 12/31/97 12/31/96
------------ ----------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income ....... $614,519 $132,398 $4,123,096 $898,962 $6,435,099 $3,069,357
Net realized gain (loss) on:
Investment
transactions ............ 111,548 3,717 11,907,336 86,714,103 15,106,323 6,093,674
Futures contracts ......... 3,580,341 139,955 -- -- -- --
Foreign currency and
forward foreign
currency contracts ..... -- -- (94) -- -- --
Change in unrealized
appreciation
(depreciation) on:
Investments ............... 292,487 22,745 112,919,340 (9,894,420) 1,710,688 10,015,576
Futures contracts ......... (201,241) 266,875 -- -- -- --
------------ ----------- ------------- ------------- ------------ ------------
Net increase in net
assets resulting from
operations ................ 4,397,654 565,690 128,949,678 77,718,645 23,252,110 19,178,607
Distribution to
shareholders from:
Net investment income .... (614,519) (132,206) (898,962) (908,877) -- (5,275,859)
Net realized gains on
investments, futures and
foreign currency
transactions .......... (2,783,548) (143,672) (76,558,164) -- -- (6,933,560)
Distribution to shareholders:
In excess of net realized
gains on investments,
futures and foreign
currency transactions . -- (267,066) -- -- -- (166,348)
Increase in net assets
from capital share
transactions (Note 4) ..... 18,257,484 7,794,785 234,744,078 68,086,867 62,287,429 16,976,697
------------ ----------- ------------- ------------- ------------ ------------
Increase in net assets ...... 19,257,071 7,817,531 286,236,630 144,896,635 85,539,539 23,779,537
Net assets at beginning
of period ................. 7,817,531 -- 422,570,828 277,674,194 76,219,654 52,440,117
------------ ----------- ------------- ------------- ------------ ------------
Net assets at end
of period ................. $27,074,602 $7,817,531 $708,807,458 $422,570,828 $161,759,193 $76,219,654
============ =========== ============= ============= ============ ============
Undistributed net
investment income ......... -- -- $4,121,547 $898,962 $4,808,797 --
============ =========== ============= ============= ============ ============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
20
<PAGE> 59
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
VALUE GROWTH AND INCOME GROWTH AND INCOME
TRUST TRUST TRUST
------------- ----------------------------- ---------------------------------
1/01/97* YEAR YEAR YEAR YEAR
TO ENDED ENDED ENDED ENDED
Increase in net assets: 12/31/97 12/31/97 12/31/96 12/31/97 12/31/96
------------- ------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income .............. $979,426 $4,301,075 $2,531,634 $15,322,986 $13,055,784
Net realized gain (loss) on:
Investment transactions .......... 2,848,645 6,819,325 13,800,418 99,563,470 66,608,198
Foreign currency and forward
foreign currency contracts ..... -- (7,637) (4,527,818) 1,285 (241,417)
Change in unrealized
appreciation (depreciation) on:
Investments ...................... 5,320,474 (11,806,866) 5,646,511 247,910,751 98,172,478
Foreign currency and forward
foreign currency contracts ..... -- 594,255 221,135 (1,256) (1,609)
------------- ------------- ------------- --------------- ---------------
Net increase (decrease) in net
assets resulting from operations .. 9,148,545 (99,848) 17,671,880 362,797,236 177,593,434
Distribution to
shareholders from:
Net investment income ............ (979,426) (3,640,170) (203,407) (13,165,084) (11,667,389)
Net realized gains on
investments and foreign
currency transactions ......... (2,848,645) (8,342,784) -- (66,257,481) (15,781,628)
Distribution to shareholders:
In excess of net realized gains
on investments and foreign
currency transactions ........ (599,054) -- -- -- --
Increase in net assets from
capital share transactions (Note 4) 139,950,204 26,849,179 82,903,570 288,274,613 214,206,333
------------- ------------- ------------- --------------- ---------------
Increase in net assets ............. 144,671,624 14,766,377 100,372,043 571,649,284 364,350,750
Net assets at beginning of period .. -- 189,010,077 88,638,034 1,033,737,994 669,387,244
------------- ------------- ------------- --------------- ---------------
Net assets at end of period ........ $144,671,624 $203,776,454 $189,010,077 $1,605,387,278 $1,033,737,994
============= ============= ============= =============== ===============
Undistributed net
investment income ................ -- $4,240,740 $3,194,285 $15,315,008 $13,165,084
============= ============= ============= =============== ===============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
21
<PAGE> 60
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE
EQUITY-INCOME BALANCED ASSET ALLOCATION
TRUST TRUST TRUST
----------------------------- ------------- -----------------------------
YEAR YEAR 1/01/97* YEAR YEAR
ENDED ENDED TO ENDED ENDED
Increase in net assets: 12/31/97 12/31/96 12/31/97 12/31/97 12/31/96
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income ................ $18,962,919 $8,744,645 $4,677,007 $4,678,266 $6,008,096
Net realized gain (loss) on:
Investment transactions ............ 40,834,683 80,310,064 20,430,952 21,787,441 17,873,805
Futures contracts .................. -- -- -- 2,190,877 (425,496)
Foreign currency and forward
foreign currency contracts ....... (76,448) (7,930) (95,635) (128,171) (871,980)
Change in unrealized
appreciation (depreciation) on:
Investments ........................ 138,364,867 395,472 400,364 12,435,747 4,719,321
Futures contracts .................. -- -- -- (63,205) (226,261)
Foreign currency and forward
foreign currency contracts ....... 245 (185) (161) (10,440) 2,798
------------- ------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations .......... 198,086,266 89,442,066 25,412,527 40,890,515 27,080,283
Distribution to
shareholders from:
Net investment income .............. (8,655,530) (5,009,152) -- (6,081,059) (5,427,633)
Net realized gains on
investments, futures and
foreign currency transactions ... (80,825,124) (25,904,015) -- (16,445,138) (10,578,038)
Increase (decrease) in net assets from
capital share transactions (Note 4) 233,613,354 144,130,166 151,632,116 (1,530,327) 3,867,674
------------- ------------- ------------- ------------- -------------
Increase in net assets ............... 342,218,966 202,659,065 177,044,643 16,833,991 14,942,286
Net assets at beginning of period .... 599,485,621 396,826,556 -- 226,699,238 211,756,952
------------- ------------- ------------- ------------- -------------
Net assets at end of period .......... $941,704,587 $599,485,621 $177,044,643 $243,533,229 $226,699,238
============= ============= ============= ============= =============
Undistributed net
investment income .................. $18,699,879 $8,655,530 $4,637,642 $4,765,263 $6,081,059
============= ============= ============= ============= =============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
22
<PAGE> 61
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATE CONSERVATIVE
ASSET ALLOCATION ASSET ALLOCATION HIGH YIELD
TRUST TRUST TRUST
----------------------------- ----------------------------- ------------
YEAR YEAR YEAR YEAR 1/01/97*
ENDED ENDED ENDED ENDED TO
Increase (decrease) in net assets: 12/31/97 12/31/96 12/31/97 12/31/96 12/31/97
------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income ............... $20,624,457 $26,442,844 $8,909,268 $10,020,051 $3,000,344
Net realized gain (loss) on:
Investment transactions ........... 44,169,728 37,335,908 9,545,017 8,576,247 731,169
Futures contracts ................. 2,745,819 (1,002,713) 38,629 (168,117) --
Foreign currency and forward
foreign currency contracts ...... (177,501) (1,527,516) (36,148) (196,816) 20,337
Change in unrealized
appreciation (depreciation) on:
Investments ....................... 22,649,867 (926,299) 3,370,336 (3,354,448) 974,604
Futures contracts ................. 92,982 (487,106) 20,122 (80,347) --
Foreign currency and forward
foreign currency contracts ...... (16,641) (857) (2,821) 45 43,163
------------- ------------- ------------- ------------- ------------
Net increase in net assets
resulting from operations ......... 90,088,711 59,834,261 21,844,403 14,796,615 4,769,617
Distribution to
shareholders from:
Net investment income ............. (26,584,959) (26,460,562) (10,062,867) (10,622,367) (2,994,422)
Net realized gains on
investments, futures and
foreign currency transactions .. (34,563,767) (26,425,885) (8,097,771) (3,004,794) (457,712)
Increase in net assets from
capital share transactions (Note 4) (44,619,393) (32,262,903) (7,801,297) (17,093,800) 91,430,172
------------- ------------- ------------- ------------- ------------
Increase (decrease) in net assets ... (15,679,408) (25,315,089) (4,117,532) (15,924,346) 92,747,655
Net assets at beginning of period ... 624,821,048 650,136,137 208,465,654 224,390,000 --
------------- ------------- ------------- ------------- ------------
Net assets at end of period ......... $609,141,640 $624,821,048 $204,348,122 $208,465,654 $92,747,655
============= ============= ============= ============= ============
Undistributed net
investment income ................. $20,941,772 $26,584,959 $8,844,386 $10,062,867 $26,259
============= ============= ============= ============= ============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
23
<PAGE> 62
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC GLOBAL CAPITAL GROWTH
BOND GOVERNMENT BOND BOND
TRUST TRUST TRUST
----------------------------- ----------------------------- -------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
Increase (decrease) in net assets: 12/31/97 12/31/96 12/31/97 12/31/96 12/31/97 12/31/96
------------- ------------- ------------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income ............. $21,794,258 $13,698,379 $13,484,526 $15,386,752 $3,061,428 $2,636,414
Net realized gain (loss) on:
Investment
transactions .................. 4,357,008 5,399,944 13,533,542 9,598,508 48,206 (211,323)
Foreign currency and
forward foreign
currency contracts ........... 474,566 748,978 (8,569,143) 3,414,227 -- --
Change in unrealized
appreciation
(depreciation) on:
Investments ..................... 2,884,064 3,229,720 (14,618,789) 1,954,903 1,026,927 (1,348,717)
Futures contracts
Foreign currency and
forward foreign
currency contracts ........... 556,273 (94,693) 2,134,019 (417,584) -- --
------------- ------------- ------------- ------------- ----------- ------------
Net increase in net
assets resulting from
operations ...................... 30,066,169 22,982,328 5,964,155 29,936,806 4,136,561 1,076,374
Distribution to
shareholders from:
Net investment income ........... (14,436,515) (10,621,746) (19,668,247) (21,062,640) -- (2,638,011)
Net realized gains on
investments, futures and
foreign currency
transactions ................ (1,809,273) -- (512,991) -- -- --
Increase (decrease) in net
assets from capital share
transactions (Note 4) ........... 130,492,346 86,212,723 (19,459,104) 5,676,210 4,459,955 4,261,280
------------- ------------- ------------- ------------- ----------- ------------
Increase (decrease)
in net assets ................... 144,312,727 98,573,305 (33,676,187) 14,550,376 8,596,516 2,699,643
Net assets at beginning
of period ....................... 221,277,481 122,704,176 249,793,310 235,242,934 45,393,429 42,693,786
------------- ------------- ------------- ------------- ----------- ------------
Net assets at end
of period ....................... $365,590,208 $221,277,481 $216,117,123 $249,793,310 $53,989,945 $45,393,429
============= ============= ============= ============= =========== ============
Undistributed net
investment income ............... $22,584,781 $14,378,392 $12,595,749 $19,668,247 $3,103,100 --
============= ============= ============= ============= =========== ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
24
<PAGE> 63
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT U.S. GOVERNMENT MONEY
QUALITY BOND SECURITIES MARKET
TRUST TRUST TRUST
----------------------------- ----------------------------- -----------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
Increase (decrease) in net assets: 12/31/97 12/31/96 12/31/97 12/31/96 12/31/97 12/31/96
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income ............. $11,518,010 $10,291,383 $13,511,297 $13,679,653 $21,497,529 $15,645,674
Net realized gain (loss) on
investment transactions ......... 560,958 1,165,169 (1,285,791) (464,497) -- --
Change in unrealized
appreciation
(depreciation)
on investments ................. 3,072,046 (7,470,195) 5,453,837 (6,682,550) -- --
------------- ------------- ------------- ------------- ------------- -------------
Net increase in net
assets resulting from
operations ...................... 15,151,014 3,986,357 17,679,343 6,532,606 21,497,529 15,645,674
Distribution to
shareholders from net
investment income .............. (10,368,425) (8,478,262) (13,118,502) (12,847,931) (21,497,529) (15,645,674)
Increase (decrease) in net
assets from capital share
transactions (Note 4) .......... 30,801,522 14,350,133 42,663,878 (6,420,478) 76,147,741 105,448,834
------------- ------------- ------------- ------------- ------------- -------------
Increase (decrease)
in net assets ................... 35,584,111 9,858,228 47,224,719 (12,735,803) 76,147,741 105,448,834
Net assets at beginning
of period ....................... 152,960,832 143,102,604 204,052,616 216,788,419 363,565,797 258,116,963
------------- ------------- ------------- ------------- ------------- -------------
Net assets at end
of period ....................... $188,544,943 $152,960,832 $251,277,335 $204,052,616 $439,713,538 $363,565,797
============= ============= ============= ============= ============= =============
Undistributed net
investment income ............... $11,620,376 $10,356,725 $13,028,158 $13,081,027 -- --
============= ============= ============= ============= ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
25
<PAGE> 64
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE
AGGRESSIVE 1000 GROWTH 820 BALANCED 640 MODERATE 460 CONSERVATIVE 280
TRUST TRUST TRUST TRUST TRUST
------------ ------------- ------------- ------------ ------------
1/07/97* 1/07/97* 1/07/97* 1/07/97* 1/07/97*
TO TO TO TO TO
Increase in net assets: 12/31/97 12/31/97 12/31/97 12/31/97 12/31/97
------------ ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income ............... $40,644 $1,638,443 $1,923,233 $692,090 $255,536
Net realized gain on
investment transactions ........... 1,761,470 6,079,624 3,201,700 483,277 167,849
Change in unrealized
appreciation on investments ....... 229,927 2,198,847 3,474,631 1,263,874 471,143
------------ ------------- ------------- ------------ ------------
Net increase in net assets
resulting from operations ......... 2,032,041 9,916,914 8,599,564 2,439,241 894,528
Distribution to shareholders from:
Net investment income ............. (40,644) (1,638,443) (1,923,233) (692,090) (255,536)
Capital gain distributions received (234,940) (623,851) (519,499) (141,843) (52,417)
Increase in net assets from
capital share transactions (Note 4) 47,348,070 209,503,037 180,496,470 51,140,322 19,163,445
------------ ------------- ------------- ------------ ------------
Increase in net assets .............. 49,104,527 217,157,657 186,653,302 52,745,630 19,750,020
Net assets at beginning of period ... -- -- -- -- --
------------ ------------- ------------- ------------ ------------
Net assets at end of period ......... $49,104,527 $217,157,657 $186,653,302 $52,745,630 $19,750,020
============ ============= ============= ============ ============
Undistributed net
investment income ................. -- -- -- -- --
============ ============= ============= ============ ============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
26
<PAGE> 65
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PACIFIC RIM EMERGING MARKETS TRUST
-----------------------------------------------
YEARS ENDED DECEMBER 31, 10/04/94*
---------------------------------- TO
1997 1996** 1995 12/31/94
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning
of period .................................. $10.90 $10.36 $9.41 $10.00
Income from investment operations:
Net investment income ...................... 0.05 0.07 0.12 0.04
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions ............................ (3.77) 0.94 0.96 (0.59)
------ ------ ------ ------
Total from investment
operations .......................... (3.72) 1.01 1.08 (0.55)
Less distributions:
Dividends from net investment income ....... -- (0.07) (0.09) (0.04)
Dividends in excess of net investment
income ................................... -- (0.01) -- --
Distributions from capital gains ........... -- (0.39) (0.04) --
Distributions in excess of capital gains ... (0.02) -- -- --
------ ------ ------ ------
Total distributions ................... (0.02) (0.47) (0.13) (0.04)
------ ------ ------ ------
Net asset value, end of period ............... $7.16 $10.90 $10.36 $9.41
====== ====== ====== ======
Total return .......................... (34.12%) 9.81% 11.47% (5.63%)+
Net assets, end of period (000's) ............ $23,850 $23,241 $13,057 $7,657
Ratio of operating expenses to
average net assets ......................... 1.42% 1.50% 1.50% 1.50%(A)
Ratio of net investment income to
average net assets ......................... 0.65% 0.78% 1.01% 1.84%(A)
Portfolio turnover rate ...................... 63% 48% 55% 0%(A)
Average commission rate per share (B) ........ $0.013 $0.015 N/A N/A
</TABLE>
- ----------
* Commencement of operations.
** Effective December 31, 1996, the Portfolio changed its name from the Pacific
Rim Emerging Markets Fund.
+ Non-annualized
(A) Annualized
(B) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged. In certain foreign markets the relationship
between the translated U.S. dollar price per share and commission paid per
share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
27
<PAGE> 66
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
SCIENCE &
TECHNOLOGY TRUST
-------------------------
01/01/97*
TO
12/31/97
-------------------------
Net asset value, beginning
of period............................... $12.50
Income from investment operations:
Net investment loss..................... (0.04)
Net realized and unrealized gain
on investments........................ 1.38
-----
Total from investment
operations....................... 1.34
Less distributions:
Distributions from capital gains....... (0.04)
Distributions in excess of
capital gains ....................... (0.18)
------
Total distributions................ (0.22)
------
Net asset value, end of period............ $13.62
======
Total return....................... 10.71%
Net assets, end of period (000's)......... $67,348
Ratio of operating expenses to
average net assets...................... 1.26%
Ratio of net investment loss to
average net assets...................... (0.54%)
Portfolio turnover rate................... 121%
Average commission rate per share......... $0.039
- ----------
* Commencement of operations.
The accompanying notes are an integral part of the financial statements.
28
<PAGE> 67
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
INTERNATIONAL
SMALL CAP TRUST
---------------------------
YEAR 03/04/96*
ENDED TO
12/31/97 12/31/96
------------ ------------
Net asset value, beginning
of period............................... $13.60 $12.50
Income from investment operations:
Net investment income................... 0.08 0.06
Net realized and unrealized gain
on investments and foreign currency
transactions......................... 0.03 1.09
----- -----
Total from investment
operations....................... 0.11 1.15
Less distributions:
Dividends from net investment income... (0.01) (0.05)
------ ------
Net asset value, end of period............ $13.70 $13.60
====== ======
Total return....................... 0.79% 9.20%+
Net assets, end of period (000's)......... $128,576 $97,218
Ratio of operating expenses to
average net assets...................... 1.31% 1.29%(A)
Ratio of net investment income to
average net assets...................... 0.63% 0.93%(A)
Portfolio turnover rate................... 74% 50%(A)
Average commission rate per share (B)..... $0.012 $0.015
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged. In certain foreign markets the relationship
between the translated U.S. dollar price per share and commission paid per
share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
29
<PAGE> 68
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
EMERGING GROWTH TRUST
-------------------------
01/01/97*
TO
12/31/97
-------------------------
Net asset value, beginning
of period............................... $20.60
Income from investment operations:
Net investment loss..................... (0.02)
Net realized and unrealized
gain on investments................... 3.55
-----
Total from investment
operations....................... 3.53
Net asset value, end of period............ $24.13
======
Total return....................... 17.14%
Net assets, end of period (000's)......... $275,774
Ratio of operating expenses to
average net assets...................... 1.11%
Ratio of net investment loss to
average net assets...................... (0.13%)
Portfolio turnover rate................... 120%
Average commission rate per share......... $0.057
- ----------
* Commencement of operations.
The accompanying notes are an integral part of the financial statements.
30
<PAGE> 69
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
PILGRIM BAXTER
GROWTH TRUST
-------------------------
01/01/97*
TO
12/31/97
-------------------------
Net asset value, beginning
of period............................... $12.50
Income from investment operations:
Net investment loss..................... (0.03)
Net realized and unrealized gain
on investments........................ 0.03
-----
Total from investment
operations....................... --
Net asset value, end of period............ $12.50
======
Total return....................... 0.00%
Net assets, end of period (000's)......... $93,335
Ratio of operating expenses to
average net assets...................... 1.18%
Ratio of net investment loss to
average net assets...................... (0.46%)
Portfolio turnover rate................... 63%
Average commission rate per share......... $0.047
- ----------
* Commencement of operations.
The accompanying notes are an integral part of the financial statements.
31
<PAGE> 70
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
SMALL/MID CAP TRUST
------------------------
YEAR 03/04/96*
ENDED TO
12/31/97 12/31/96
---------- ----------
Net asset value, beginning
of period............................... $13.37 $12.50
Income from investment operations:
Net investment loss..................... (0.04) --
Net realized and unrealized gain
on investments........................ 2.08 0.87
----- -----
Total from investment
operations....................... 2.04 0.87
Net asset value, end of period............ $15.41 $13.37
====== ======
Total return....................... 15.26% 6.96%+
Net assets, end of period (000's)......... $268,377 $176,062
Ratio of operating expenses to
average net assets...................... 1.05% 1.10%(A)
Ratio of net investment loss to
average net assets...................... (0.33%) (0.02%)(A)
Portfolio turnover rate................... 151% 67%(A)
Average commission rate per share......... $0.070 $0.069
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
32
<PAGE> 71
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
INTERNATIONAL
STOCK TRUST
-------------------------
01/01/97*
TO
12/31/97
-------------------------
Net asset value, beginning
of period............................... $11.47
Income from investment operations:
Net investment income................... 0.04
Net realized and unrealized gain
on investments and foreign currency
transactions......................... 0.12
-----
Total from investment
operations....................... 0.16
Less distributions:
Dividends from net investment income... (0.03)
Distributions from capital gains....... (0.05)
Distributions in excess of
capital gains ....................... (0.08)
------
Total distributions................ (0.16)
------
Net asset value, end of period............ $11.47
======
Total return....................... 1.38%
Net assets, end of period (000's)......... $145,253
Ratio of operating expenses to
average net assets...................... 1.38%
Ratio of net investment income to
average net assets...................... 0.56%
Portfolio turnover rate................... 43%
Average commission rate per share (A)..... $0.026
- ----------
* Commencement of operations.
(A) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged. In certain foreign markets the relationship
between the translated U.S. dollar price per share and commission paid per
share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
33
<PAGE> 72
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
WORLDWIDE
GROWTH TRUST
-------------------------
01/01/97*
TO
12/31/97
-------------------------
Net asset value, beginning
of period............................... $12.50
Income from investment operations:
Net investment income................... 0.04
Net realized and unrealized gain
on investments and foreign currency
transactions......................... 1.62
-----
Total from investment
operations....................... 1.66
Less distributions:
Dividends from net investment income... (0.03)
Distributions from capital gains....... (0.02)
Distributions in excess of
capital gains ....................... (0.07)
------
Total distributions................ (0.12)
------
Net asset value, end of period............ $14.04
======
Total return....................... 13.29%
Net assets, end of period (000's)......... $24,262
Ratio of operating expenses to
average net assets...................... 1.32%
Ratio of net investment income to
average net assets...................... 0.61%
Portfolio turnover rate................... 84%
Average commission rate per share (A)..... $0.032
- ----------
* Commencement of operations.
(A) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged. In certain foreign markets the relationship
between the translated U.S. dollar price per share and commission paid per
share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
34
<PAGE> 73
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL EQUITY TRUST
------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ............................... $17.84 $16.10 $15.74 $15.73 $12.00 $12.24
Income from investment operations:
Net investment income (loss) (B) ....... 0.19 0.12 0.29 0.05 0.12 0.10
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions ........ 3.16 1.89 0.84 0.22 3.79 (0.19)
------ ------ ------ ------ ------ ------
Total from investment operations ..... 3.35 2.01 1.13 0.27 3.91 (0.09)
Less distributions:
Dividends from net investment income .... (0.27) (0.27) (0.08) (0.02) (0.18) (0.15)
Distributions from capital gains ........ (1.54) -- (0.69) (0.24) -- --
------ ------ ------ ------ ------ ------
Total distributions .................. (1.81) (0.27) (0.77) (0.26) (0.18) (0.15)
------ ------ ------ ------ ------ ------
Net asset value, end of period ............ $19.38 $17.84 $16.10 $15.74 $15.73 $12.00
====== ====== ====== ====== ====== ======
Total return ......................... 20.80% 12.62% 7.68% 1.74% 32.89% (0.72%)
Net assets, end of period (000's).. $868,413 $726,842 $648,183 $616,138 $377,871 $116,731
Ratio of operating expenses to
average net assets (C) .................. 1.01% 1.01% 1.05% 1.08% 1.16% 1.16%
Ratio of net investment income (loss) to
average net assets ...................... 1.02% 0.78% 0.61% 0.44% 0.77% 1.12%
Portfolio turnover rate ................... 33% 169% 63% 52% 52% 69%
Average commission rate per share (D) ..... $0.032 $0.015 N/A N/A N/A N/A
<CAPTION>
------------------------------------------------------
03/18/88*
---------------------------------------- TO
1991 1990 1989 12/31/88
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning
of period ............................... $11.00 $12.57 $10.15 $10.03
Income from investment operations:
Net investment income (loss) (B) ....... 0.16 0.12 0.10 (0.05)
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions ........ 1.23 (1.41) 2.32 0.17
------ ------ ------ ------
Total from investment operations ..... 1.39 (1.29) 2.42 0.12
Less distributions:
Dividends from net investment income .... (0.15) (0.04) -- --
Distributions from capital gains ........ -- (0.24) -- --
------ ------ ------ ------
Total distributions .................. (0.15) (0.28) -- --
------ ------ ------ ------
Net asset value, end of period ............ $12.24 $11.00 $12.57 $10.15
====== ====== ====== ======
Total return ......................... 12.80% (10.43%) 23.84% 1.20%+
Net assets, end of period (000's).. $89,003 $63,028 $26,223 $2,143
Ratio of operating expenses to
average net assets (C) .................. 1.23% 1.28% 1.62% 3.98%(A)
Ratio of net investment income (loss) to
average net assets ...................... 1.47% 1.97% 1.82% (1.71%)(A)
Portfolio turnover rate ................... 74% 67% 109% 81%(A)
Average commission rate per share (D) ..... N/A N/A N/A N/A
</TABLE>
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) After expense reimbursement per share of $0.02 in 1988.
(C) The ratio of operating expenses, before reimbursement from the investment
adviser, was 4.53% in 1988.
(D) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged. In certain foreign markets the relationship
between the translated U.S. dollar price per share and commission paid per
share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
35
<PAGE> 74
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
SMALL COMPANY
VALUE TRUST
-------------------------
10/01/97*
TO
12/31/97
-------------------------
Net asset value, beginning
of period............................... $12.50
Income from investment operations:
Net investment income................... 0.01
Net realized and unrealized loss
on investments and foreign currency
transactions......................... (0.57)
------
Total from investment
operations....................... (0.56)
Net asset value, end of period............ $11.94
======
Total return....................... (4.48%)+
Net assets, end of period (000's)......... $67,091
Ratio of operating expenses to
average net assets...................... 1.19%(A)
Ratio of net investment income to
average net assets...................... 0.54%(A)
Portfolio turnover rate................... 81%(A)
Average commission rate per share (B)..... $0.032
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share of all security
trades on which commissions are charged. In certain foreign markets the
relationship between the translated U.S. dollar price per share and
commission paid per share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
36
<PAGE> 75
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY TRUST
------------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993* 1992
----------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period .......................... $22.62 $20.79 $14.66 $15.57 $13.97 $13.12
Income from investment operations:
Net investment income .............. 0.08 0.13 0.10 0.11 0.07 0.64
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions .. 3.31 3.77 6.14 (0.18) 2.11 0.38
------ ------ ------ ------ ------ ------
Total from investment
operations .................... 3.39 3.90 6.24 (0.07) 2.18 1.02
Less distributions:
Dividends from net investment
income ........................... (0.14) (0.09) (0.11) (0.05) (0.58) (0.17)
Distributions from capital gains ... (4.37) (1.98) -- (0.79) -- --
------ ------ ------ ------ ------ ------
Total distributions ............. (4.51) (2.07) (0.11) (0.84) (0.58) (0.17)
------ ------ ------ ------ ------ ------
Net asset value, end of period ....... $21.50 $22.62 $20.79 $14.66 $15.57 $13.97
====== ====== ====== ====== ====== ======
Total return .................... 19.25% 20.14% 42.79% (0.53%) 16.31% 7.93%
Net assets, end of period (000's) .... $1,521,382 $1,345,461 $988,800 $534,562 $387,842 $192,626
Ratio of operating expenses to
average net assets ................. 0.80% 0.80% 0.80% 0.84% 0.88% 0.95%
Ratio of net investment income to
average net assets ................. 0.35% 0.71% 0.63% 0.88% 0.50% 7.31%
Portfolio turnover rate .............. 224% 223% 88% 132% 173% 782%
Average commission rate per
share (A) .......................... $0.043 $0.043 N/A N/A N/A N/A
<CAPTION>
-----------------------------------------------------------
1991 1990 1989 1988
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning
of period .......................... $11.33 $19.14 $15.17 $12.57
Income from investment operations:
Net investment income .............. 0.14 0.24 0.29 0.15
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions .. 1.88 (1.95) 3.87 2.45
------ ------ ------ ------
Total from investment
operations .................... 2.02 (1.71) 4.16 2.60
Less distributions:
Dividends from net investment
income ........................... (0.23) (0.29) (0.12) --
Distributions from capital gains ... -- (5.81) (0.07) --
------ ------ ------ ------
Total distributions ............. (0.23) (6.10) (0.19) --
------ ------ ------ ------
Net asset value, end of period ....... $13.12 $11.33 $19.14 $15.17
====== ====== ====== ======
Total return .................... 17.94% (11.79%) 27.70% 20.71%
Net assets, end of period (000's) .... $88,235 $36,564 $32,108 $133,852
Ratio of operating expenses to
average net assets ................. 0.89% 0.97% 1.02% 1.08%
Ratio of net investment income to
average net assets ................. 2.23% 2.74% 1.90% 1.80%
Portfolio turnover rate .............. 172% 95% 111% 49%
Average commission rate per
share (A) .......................... N/A N/A N/A N/A
</TABLE>
- ----------
* Net investment income per share was calculated using the average shares
method for fiscal year 1993.
(A) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share of all security
trades on which commissions are charged.
The accompanying notes are an integral part of the financial statements.
37
<PAGE> 76
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
GROWTH TRUST
------------------------------
YEAR 07/15/96*
ENDED TO
12/31/97 12/31/96
------------ ------------
Net asset value, beginning
of period............................... $13.73 $12.50
Income from investment operations:
Net investment income................... 0.08 0.09
Net realized and unrealized gain
on investments and foreign currency
transactions......................... 3.40 1.23
----- -----
Total from investment
operations....................... 3.48 1.32
Less distributions:
Dividends from net investment income... -- (0.09)
------- ------
Net asset value, end of period............ $17.21 $13.73
====== ======
Total return....................... 25.35% 10.53%+
Net assets, end of period (000's)......... $167,388 $56,807
Ratio of operating expenses to
average net assets...................... 0.95% 1.01%(A)
Ratio of net investment income to
average net assets...................... 0.74% 2.57%(A)
Portfolio turnover rate................... 179% 215%(A)
Average commission rate per share......... $0.061 $0.048
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
38
<PAGE> 77
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUANTITATIVE EQUITY TRUST
---------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------
1997 1996** 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period .............................. $17.33 $17.27 $13.36 $14.68 $13.73 $13.33 $10.48
Income from investment operations:
Net investment income (A) .............. 0.26 0.26 0.24 0.20 0.19 0.18 0.21
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions ...... 4.91 2.83 3.67 (0.81) 1.64 0.61 2.94
------ ------ ------ ------ ------ ------ ------
Total from investment
operations ........................ 5.17 3.09 3.91 (0.61) 1.83 0.79 3.15
Less distributions:
Dividends from net investment income ... -- (0.50) -- (0.20) (0.19) (0.18) (0.21)
Distributions from capital gains ....... -- (2.51) -- (0.51) (0.69) (0.21) (0.09)
Distributions in excess of
capital gains ........................ -- (0.02) -- -- -- -- --
------ ------ ------ ------ ------ ------ ------
Total distributions ................. -- (3.03) -- (0.71) (0.88) (0.39) (0.30)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ........... $22.50 $17.33 $17.27 $13.36 $14.68 $13.73 $13.33
====== ====== ====== ====== ====== ====== ======
Total return ........................ 29.83% 17.92% 29.23% (4.19%) 13.39% 6.07% 30.18%
Net assets, end of period (000's) ........ $167,530 $91,900 $60,996 $34,829 $21,651 $9,708 $5,480
Ratio of operating expenses to
average net assets (B) ................. 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income to
average net assets ..................... 1.50% 1.81% 1.76% 1.53% 1.39% 1.51% 1.78%
Portfolio turnover rate .................. 114% 105% 109% 85% 88% 48% 53%
Average commission rate per share (C) .... $0.059 $0.060 N/A N/A N/A N/A N/A
<CAPTION>
----------------------------------
----------------------------------
1990 1989 1988
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning
of period .............................. $11.25 $8.91 $8.36
Income from investment operations:
Net investment income (A) .............. 0.32 0.36 0.28
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions ...... (0.77) 2.34 0.56
------ ------ ------
Total from investment
operations ........................ (0.45) 2.70 0.84
Less distributions:
Dividends from net investment income ... (0.32) (0.36) (0.29)
Distributions from capital gains ....... -- -- --
Distributions in excess of
capital gains ........................ -- -- --
------ ------ ------
Total distributions ................. (0.32) (0.36) (0.29)
------ ------ ------
Net asset value, end of period ........... $10.48 $11.25 $8.91
====== ====== ======
Total return ........................ (4.06%) 30.66% 9.86%
Net assets, end of period (000's) ........ $2,872 $2,138 $1,176
Ratio of operating expenses to
average net assets (B) ................. 0.50% 0.50% 0.50%
Ratio of net investment income to
average net assets ..................... 3.06% 3.48% 3.16%
Portfolio turnover rate .................. 121% 121% 172%
Average commission rate per share (C) .... N/A N/A N/A
</TABLE>
- ----------
* Commencement of operations.
** Effective December 31, 1996, the Portfolio changed its name from the Common
Stock Fund.
(A) After investment adviser expense reimbursement per share of $0.05 for the
year ended December 31, 1997.
(B) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.77% for the year ended December 31, 1997.
(C) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged.
The accompanying notes are an integral part of the financial statements.
39
<PAGE> 78
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
EQUITY INDEX TRUST
-----------------------------
YEAR 02/14/96*
ENDED TO
12/31/97 12/31/96**
---------- ------------
Net asset value, beginning
of period............................... $10.69 $10.00
Income from investment operations:
Net investment income (B)............... 0.32 0.19
Net realized and unrealized gain
on investments........................ 3.26 1.29
----- -----
Total from investment
operations....................... 3.58 1.48
Less distributions:
Dividends from net investment income... (0.32) (0.19)
Distributions from capital gains....... (1.47) (0.21)
Distributions in excess of
capital gains ...................... -- (0.39)
------ ------
Total distributions................ (1.79) (0.79)
------ ------
Net asset value, end of period............ $12.48 $10.69
====== ======
Total return....................... 33.53% 14.86%+
Net assets, end of period (000's)......... $27,075 $7,818
Ratio of operating expenses to
average net assets (C).................. 0.40% 0.40%(A)
Ratio of net investment income to
average net assets...................... 3.64% 4.74%(A)
Portfolio turnover rate................... 7% 27%(A)
Average commission rate per share......... $0.033 $0.041
- ----------
* Commencement of operations.
** Effective December 31, 1996, the Portfolio changed its name from the Equity
Index Fund.
+ Non-annualized
(A) Annualized
(B) After investment adviser expense reimbursement per share of $0.01 for the
year ended December 31, 1997.
(C) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.57% for the year ended December 31, 1997.
The accompanying notes are an integral part of the financial statements.
40
<PAGE> 79
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BLUE CHIP GROWTH TRUST
-------------------------------------------------------------------------
YEARS ENDED DECEMBER 31, 12/11/92*
------------------------------------------------------------ TO
1997 1996** 1995 1994 1993 12/31/92
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .. $14.31 $11.40 $9.05 $9.55 $9.93 $10.00
Income from investment operations:
Net investment income (B) .......... 0.09 0.03 0.03 0.04 0.05 0.00
Net realized and unrealized gain
(loss) on investments ............ 3.13 2.92 2.36 (0.50) (0.42) (0.07)
------ ------ ------ ------ ------ ------
Total from investment operations 3.22 2.95 2.39 (0.46) (0.37) (0.07)
Less distributions:
Dividends from net investment
income ........................... (0.03) (0.04) (0.04) (0.04) (0.01) --
Distributions from capital gains ... (2.50) -- -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions ............ (2.53) (0.04) (0.04) (0.04) (0.01) --
------ ------ ------ ------ ------ ------
Net asset value, end of period ........ $15.00 $14.31 $11.40 $9.05 $9.55 $9.93
====== ====== ====== ====== ====== ======
Total return ................... 26.94% 25.90% 26.53% (4.80%) (3.80%) (0.70%)+
Net assets, end of period (000's) ..... $708,807 $422,571 $277,674 $151,727 $104,966 $31,118
Ratio of operating expenses to
average net assets (C) .............. 0.975% 0.975% 0.975% 0.975% 0.975% 1.06%(A)
Ratio of net investment income to
average net assets .................. 0.74% 0.26% 0.42% 0.65% 0.75% 1.04%(A)
Portfolio turnover rate ............... 37% 159% 57% 33% 12% 0%(A)
Average commission rate per
share (D) ........................... $0.043 $0.049 N/A N/A N/A N/A
</TABLE>
- ----------
* Commencement of operations.
** Effective October 1, 1996, the Portfolio changed its name from the Pasadena
Growth Trust.
+ Non-annualized
(A) Annualized
(B) After investment adviser and subadviser expense reimbursement per share of
$0.006, $0.004, $0.006 and $0.01 for the years ended December 31, 1996,
1995, 1994 and 1993, respectively.
(C) The ratio of operating expenses, before reimbursement from the investment
adviser and subadviser, was 1.02%, 1.03%, 1.06% and 1.09% for the years
ended December 31, 1996, 1995, 1994 and 1993, respectively.
(D) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged.
The accompanying notes are an integral part of the financial statements.
41
<PAGE> 80
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
REAL ESTATE SECURITIES TRUST
-------------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------
1997 1996** 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period .......................... $16.95 $15.10 $13.34 $14.07 $12.75 $10.92 $8.16
Income from investment operations:
Net investment income (A) .......... 0.80 0.74 0.67 0.55 0.47 0.45 0.53
Net realized and unrealized gain
(loss) on investments ............ 2.32 4.31 1.35 (0.93) 2.38 1.83 2.76
------ ------ ------ ------ ------ ------ ------
Total from investment
operations .................... 3.12 5.05 2.02 (0.38) 2.85 2.28 3.29
Less distributions:
Dividends from net investment
income ........................... -- (1.39) (0.26) (0.27) (0.47) (0.45) (0.53)
Distributions from capital gains ... -- (1.77) -- (0.08) (1.06) -- --
Distributions in excess of
capital gains .................... -- (0.04 -- -- -- -- --
------ ------ ------ ------ ------ ------ ------
Total distributions ............. -- (3.20) (0.26) (0.35) (1.53) (0.45) (0.53)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ....... $20.07 $16.95 $15.10 $13.34 $14.07 $12.75 $10.92
====== ====== ====== ====== ====== ====== ======
Total return .................... 18.41% 34.69% 15.14% (2.76%) 22.61% 21.29% 41.10%
Net assets, end of period (000's) .... $161,759 $76,220 $52,440 $42,571 $24,106 $7,273 $4,120
Ratio of operating expenses to
average net assets (B) ............. 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income to
average net assets ................. 5.42% 5.22% 5.06% 4.26% 3.93% 4.13% 5.40%
Portfolio turnover rate .............. 148% 231% 136% 36% 143% 71% 40%
Average commission rate per
share (C) .......................... $0.052 $0.059 N/A N/A N/A N/A N/A
<CAPTION>
----------------------------------
----------------------------------
1990 1989 1988
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning
of period .......................... $9.24 $9.12 $8.76
Income from investment operations:
Net investment income (A) .......... 0.67 0.68 0.70
Net realized and unrealized gain
(loss) on investments ............ (1.09) 0.15 0.37
------ ------ ------
Total from investment
operations .................... (0.42) 0.83 1.07
Less distributions:
Dividends from net investment
income ........................... (0.66) (0.71) (0.71)
Distributions from capital gains ... -- -- --
Distributions in excess of
capital gains .................... -- -- --
------ ------ ------
Total distributions ............. (0.66) (0.71) (0.71)
------ ------ ------
Net asset value, end of period ....... $8.16 $9.24 $9.12
====== ====== ======
Total return .................... (4.53%) 9.23% 11.72%
Net assets, end of period (000's) .... $2,774 $2,874 $2,490
Ratio of operating expenses to
average net assets (B) ............. 0.50% 0.50% 0.50%
Ratio of net investment income to
average net assets ................. 7.74% 7.29% 7.18%
Portfolio turnover rate .............. 24% 15% 23%
Average commission rate per
share (C) .......................... N/A N/A N/A
</TABLE>
- ----------
* Commencement of operations
** Effective December 31, 1996, the Portfolio changed its name from the Real
Estate Securities Fund.
(A) After investment adviser expense reimbursement per share of $0.04 for the
year ended December 31, 1997.
(B) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.77% for the year ended December 31, 1997.
(C) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged. In certain foreign markets the relationship
between the translated U.S. dollar price per share and commission paid per
share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
42
<PAGE> 81
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
VALUE TRUST
-------------------------
01/01/97*
TO
12/31/97
-------------------------
Net asset value, beginning
of period............................... $12.50
Income from investment operations:
Net investment income................... 0.10
Net realized and unrealized gain
on investments........................ 2.67
-----
Total from investment
operations....................... 2.77
Less distributions:
Dividends from net investment income... (0.10)
Distributions from capital gains....... (0.30)
Distributions in excess of
capital gains ....................... (0.06)
------
Total distributions................ (0.46)
------
Net asset value, end of period............ $14.81
======
Total return....................... 22.14%
Net assets, end of period (000's)......... $144,672
Ratio of operating expenses to
average net assets...................... 0.96%
Ratio of net investment income to
average net assets...................... 1.50%
Portfolio turnover rate................... 43%
Average commission rate per share......... $0.058
- ----------
* Commencement of operations.
The accompanying notes are an integral part of the financial statements.
43
<PAGE> 82
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH AND INCOME TRUST
----------------------------------------------
YEARS ENDED DECEMBER 31, 01/09/95*
----------------------------- TO
1997 1996 12/31/95
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value, beginning
of period .............................. $11.77 $10.47 $10.00
Income from investment operations:
Net investment income ................. 0.23 0.17 0.11
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions ....................... (0.26) 1.15 0.59
------ ------ ------
Total from investment
operations ...................... (0.03) 1.32 0.70
Less distributions:
Dividends from net investment
income .............................. (0.22) (0.02) (0.12)
Distributions from capital gains ...... (0.51) -- (0.11)
------ ------ ------
Total distributions ............... (0.73) (0.02) (0.23)
------ ------ ------
Net asset value, end of period ........... $11.01 $11.77 $10.47
====== ====== ======
Total return ...................... (0.08%) 12.61% 6.98%+
Net assets, end of period (000's) ........ $203,776 $189,010 $88,638
Ratio of operating expenses to
average net assets ..................... 1.12% 1.11% 1.47%(A)
Ratio of net investment income to
average net assets ..................... 2.08% 1.82% 0.71%(A)
Portfolio turnover rate .................. 166% 148% 112%(A)
Average commission rate per share (B) .... $0.004 $0.028 N/A
</TABLE>
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged. In certain foreign markets the relationship
between the translated U.S. dollar price per share and commission paid per
share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
44
<PAGE> 83
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND INCOME TRUST
-------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31, 04/23/91*
------------------------------------------------------------------------- TO
1997 1996 1995 1994 1993 1992 12/31/91
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ........................... $19.38 $16.37 $13.04 $13.05 $12.10 $11.08 $10.00
Income from investment operations:
Net investment income ............... 0.22 0.22 0.27 0.25 0.17 0.20 0.13
Net realized and unrealized gain
on investments and foreign currency
transactions ..................... 5.73 3.41 3.45 0.11 0.98 0.92 0.95
------ ------ ------ ------ ------ ------ ------
Total from investment
operations ................... 5.95 3.63 3.72 0.36 1.15 1.12 1.08
Less distributions:
Dividends from net investment
income ............................ (0.24) (0.26) (0.26) (0.19) (0.18) (0.10) --
Distributions from capital gains .... (1.20) (0.36) (0.13) (0.18) (0.02) -- --
------ ------ ------ ------ ------ ------ ------
Total distributions ............ (1.44) (0.62) (0.39) (0.37) (0.20) (0.10) --
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ........ $23.89 $19.38 $16.37 $13.04 $13.05 $12.10 $11.08
====== ====== ====== ====== ====== ====== ======
Total return ................... 32.83% 22.84% 29.20% 2.85% 9.62% 10.23% 10.80%+
Net assets, end of period (000's) ..... $1,605,387 $1,033,738 $669,387 $409,534 $288,765 $130,984 $57,404
Ratio of operating expenses to
average net assets .................. 0.79% 0.80% 0.80% 0.82% 0.85% 0.85% 0.98%(A)
Ratio of net investment income to
average net assets .................. 1.14% 1.56% 2.23% 2.40% 2.29% 2.78% 2.92%(A)
Portfolio turnover rate ............... 34% 49% 39% 42% 39% 44% 62%(A)
Average commission rate per
share (B) ........................... $0.055 $0.055 N/A N/A N/A N/A N/A
</TABLE>
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged.
The accompanying notes are an integral part of the financial statements.
45
<PAGE> 84
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY-INCOME TRUST
-----------------------------------------------------------
YEARS ENDED DECEMBER 31, 02/19/93*
------------------------------------------------ TO
1997 1996** 1995 1994(1) 12/31/93
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ......................... $15.41 $13.81 $11.33 $11.31 $10.00
Income from investment operations:
Net investment income ............ 0.34 0.21 0.17 0.12 0.07
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions ........... 3.68 2.39 2.49 (0.03) 1.24
------ ------ ------ ------ ------
Total from investment
operations ................. 4.02 2.60 2.66 0.09 1.31
Less distributions:
Dividends from net investment
income ......................... (0.21) (0.16) (0.08) (0.05) --
Distributions from capital gains . (1.98) (0.84) (0.10) (0.02) --
------ ------ ------ ------ ------
Total distributions .......... (2.19) (1.00) (0.18) (0.07) --
------ ------ ------ ------ ------
Net asset value, end of period ...... $17.24 $15.41 $13.81 $11.33 $11.31
====== ====== ====== ====== ======
Total return ................. 29.71% 19.85% 23.69% 0.79% 13.10%+
Net assets, end of period (000's) ... $941,705 $599,486 $396,827 $221,835 $86,472
Ratio of operating expenses to
average net assets ................ 0.85% 0.85% 0.85% 0.87% 0.94%(A)
Ratio of net investment income to
average net assets ................ 2.47% 1.78% 1.63% 1.08% 1.30%(A)
Portfolio turnover rate ............. 25% 158% 52% 26% 33%(A)
Average commission rate per
share (B) ......................... $0.035 $0.052 N/A N/A N/A
</TABLE>
- ----------
* Commencement of operations.
** Effective October 1, 1996, the Portfolio changed its name from the Value
Equity Trust.
(1) Net investment income per share was calculated using the average shares
method for fiscal year 1994.
+ Non-annualized
(A) Annualized
(B) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged.
The accompanying notes are an integral part of the financial statements.
46
<PAGE> 85
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
BALANCED TRUST
-------------------------
01/01/97*
TO
12/31/97
-------------------------
Net asset value, beginning
of period............................... $16.41
Income from investment operations:
Net investment income................... 0.51
Net realized and unrealized
gain on investments................... 2.41
-----
Total from investment
operations....................... 2.92
Net asset value, end of period............ $19.33
======
Total return....................... 17.79%
Net assets, end of period (000's)......... $177,045
Ratio of operating expenses to
average net assets...................... 0.88%
Ratio of net investment income to
average net assets...................... 2.97%
Portfolio turnover rate................... 219%
Average commission rate per share......... $0.061
- ----------
* Commencement of operations.
The accompanying notes are an integral part of the financial statements.
47
<PAGE> 86
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE ASSET ALLOCATION TRUST
-------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ........................ $13.45 $12.85 $11.17 $12.03 $11.25 $10.72
Income from investment operations:
Net investment income ............ 0.29 0.36 0.35 0.31 0.34 0.30
Net realized and unrealized gain
(loss) on investments and
foreign currency
transactions ............... 2.01 1.21 2.07 (0.41) 0.79 0.55
------ ------ ------ ------ ------ ------
Total from investment
operations .................. 2.30 1.57 2.42 (0.10) 1.13 0.85
Less distributions:
Dividends from net investment
income ......................... (0.38) (0.33) (0.33) (0.31) (0.30) (0.32)
Distributions from capital gains.. (1.01) (0.64) (0.41) (0.45) (0.05) --
------ ------ ------ ------ ------ ------
Total distributions ........... (1.39) (0.97) (0.74) (0.76) (0.35) (0.32)
------ ------ ------ ------ ------ ------
Net asset value, end of period ..... $14.36 $13.45 $12.85 $11.17 $12.03 $11.25
====== ====== ====== ====== ====== ======
Total return .................. 19.09% 13.00% 22.77% (0.69%) 10.30% 8.24%
Net assets, end of period (000's)... $243,533 $226,699 $211,757 $184,662 $174,448 $151,627
Ratio of operating expenses to
average net assets ............... 0.90% 0.90% 0.91% 0.89% 0.86% 0.89%
Ratio of net investment income to
average net assets ............... 1.99% 2.73% 2.76% 2.90% 2.96% 3.08%
Portfolio turnover rate ............ 91% 75% 111% 136% 92% 123%
Average commission rate per
share (B) ........................ $0.022 $0.025 N/A N/A N/A N/A
<CAPTION>
----------------------------------
08/03/89*
--------------------- TO
1991 1990 12/31/89
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning
of period ........................ $9.08 $9.88 $10.00
Income from investment operations:
Net investment income ............ 0.36 0.36 0.08
Net realized and unrealized gain
(loss) on investments and
foreign currency
transactions ............... 1.69 (1.07) (0.20)
------ ------ ------
Total from investment
operations .................. 2.05 (0.71) (0.12)
Less distributions:
Dividends from net investment
income ......................... (0.41) (0.07) --
Distributions from capital gains.. -- (0.02) --
------ ------ ------
Total distributions ........... (0.41) (0.09) --
------ ------ ------
Net asset value, end of period ..... $10.72 $9.08 $9.88
====== ====== ======
Total return .................. 22.96% (7.27%) (1.20%)+
Net assets, end of period (000's)... $124,632 $91,581 $87,301
Ratio of operating expenses to
average net assets ............... 0.88% 0.78% 0.89%(A)
Ratio of net investment income to
average net assets ............... 3.63% 4.08% 3.32%(A)
Portfolio turnover rate ............ 172% 82% 22%(A)
Average commission rate per
share (B) ........................ N/A N/A N/A
</TABLE>
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged. In certain foreign markets the relationship
between the translated U.S. dollar price per share and commission paid per
share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
48
<PAGE> 87
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATE ASSET ALLOCATION TRUST
---------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ........................ $12.49 $12.39 $10.79 $11.76 $11.14 $10.72
Income from investment operations:
Net investment income ............ 0.48 0.54 0.50 0.45 0.41 0.41
Net realized and unrealized gain
(loss) on investments and
foreign currency
transactions ............... 1.29 0.60 1.65 (0.65) 0.67 0.43
------ ------ ------ ------ ------ ------
Total from investment
operations .................. 1.77 1.14 2.15 (0.20) 1.08 0.84
Less distributions:
Dividends from net investment
income ......................... (0.57) (0.52) (0.45) (0.40) (0.39) (0.42)
Distributions from capital gains.. (0.74) (0.52) (0.10) (0.37) (0.07) --
------ ------ ------ ------ ------ ------
Total distributions ........... (1.31) (1.04) (0.55) (0.77) (0.46) (0.42)
------ ------ ------ ------ ------ ------
Net asset value, end of period ..... $12.95 $12.49 $12.39 $10.79 $11.76 $11.14
====== ====== ====== ====== ====== ======
Total return .................. 15.87% 9.96% 20.68% (1.61%) 10.06% 8.30%
Net assets, end of period (000's)... $609,142 $624,821 $650,136 $604,491 $644,257 $505,967
Ratio of operating expenses to
average net assets ............... 0.85% 0.84% 0.84% 0.85% 0.84% 0.87%
Ratio of net investment income to
average net assets ............... 3.37% 4.17% 4.09% 4.01% 4.02% 4.21%
Portfolio turnover rate ............ 78% 78% 129% 180% 135% 169%
Average commission rate per
share (B) ........................ $0.022 $0.027 N/A N/A N/A N/A
<CAPTION>
-----------------------------------
08/03/89*
--------------------- TO
1991 1990 12/31/89
-------- -------- ---------
<S> <C> <C> <C>
Net asset value, beginning
of period ........................ $9.29 $10.03 $10.00
Income from investment operations:
Net investment income ............ 0.42 0.48 0.11
Net realized and unrealized gain
(loss) on investments and
foreign currency
transactions ............... 1.50 (1.10) (0.08)
------ ------ ------
Total from investment
operations .................. 1.92 (0.62) 0.03
Less distributions:
Dividends from net investment
income ......................... (0.49) (0.10) --
Distributions from capital gains.. -- (0.02) --
------ ------ ------
Total distributions ........... (0.49) (0.12) --
------ ------ ------
Net asset value, end of period ..... $10.72 $9.29 $10.03
====== ====== ======
Total return .................. 21.23% (6.23%) 0.30%+
Net assets, end of period (000's)... $420,074 $327,328 $318,439
Ratio of operating expenses to
average net assets ............... 0.86% 0.73% 0.79%(A)
Ratio of net investment income to
average net assets ............... 4.38% 5.10% 4.51%(A)
Portfolio turnover rate ............ 168% 76% 41%(A)
Average commission rate per
share (B) ........................ N/A N/A N/A
</TABLE>
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged. In certain foreign markets the relationship
between the translated U.S. dollar price per share and commission paid per
share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
49
<PAGE> 88
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONSERVATIVE ASSET ALLOCATION TRUST
---------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ........................ $11.64 $11.59 $10.34 $11.26 $10.78 $10.63 $9.56
Income from investment operations:
Net investment income ............ 0.54 0.57 0.54 0.55 0.50 0.47 0.58
Net realized and unrealized gain
(loss) on investments and
foreign currency
transactions ............... 0.67 0.20 1.26 (0.76) 0.44 0.26 1.15
------ ------ ------ ------ ------ ------ ------
Total from investment
operations .................. 1.21 0.77 1.80 (0.21) 0.94 0.73 1.73
Less distributions:
Dividends from net investment
income ......................... (0.59) (0.56) (0.55) (0.46) (0.46) (0.58) (0.66)
Distributions from capital gains.. (0.48) (0.16) -- (0.25) -- -- --
------ ------ ------ ------ ------ ------ ------
Total distributions ........... (1.07) (0.72) (0.55) (0.71) (0.46) (0.58) (0.66)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ..... $11.78 $11.64 $11.59 $10.34 $11.26 $10.78 $10.63
====== ====== ====== ====== ====== ====== ======
Total return .................. 11.44% 7.03% 18.07% (1.84%) 8.99% 7.36% 18.80%
Net assets, end of period (000's)... $204,348 $208,466 $224,390 $216,716 $250,117 $201,787 $165,167
Ratio of operating expenses to
average net assets ............... 0.89% 0.87% 0.87% 0.87% 0.86% 0.89% 0.88%
Ratio of net investment income to
average net assets ............... 4.39% 4.59% 4.68% 4.86% 4.78% 4.99% 5.65%
Portfolio turnover rate ............ 86% 73% 110% 220% 170% 252% 211%
Average commission rate per
share (B) ........................ $0.021 $0.028 N/A N/A N/A N/A N/A
<CAPTION>
----------------------
08/03/89*
-------- TO
1990 12/31/89
-------- ---------
<S> <C> <C>
Net asset value, beginning
of period ........................ $10.11 $10.00
Income from investment operations:
Net investment income ............ 0.62 0.15
Net realized and unrealized gain
(loss) on investments and
foreign currency
transactions ............... (1.01) (0.04)
------ ------
Total from investment
operations .................. (0.39) 0.11
Less distributions:
Dividends from net investment
income ......................... (0.13) --
Distributions from capital gains.. (0.03) --
------ ------
Total distributions ........... (0.16) --
------ ------
Net asset value, end of period ..... $9.56 $10.11
====== ======
Total return .................. (3.84%) 1.10%+
Net assets, end of period (000's)... $149,901 $141,191
Ratio of operating expenses to
average net assets ............... 0.76% 0.82%(A)
Ratio of net investment income to
average net assets ............... 6.68% 6.00%(A)
Portfolio turnover rate ............ 78% 85%(A)
Average commission rate per
share (B) ........................ N/A N/A
</TABLE>
- ---------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share of all security trades on
which commissions are charged. In certain foreign markets the relationship
between the translated U.S. dollar price per share and commission paid per
share may vary from that of domestic markets.
The accompanying notes are an integral part of the financial statements.
50
<PAGE> 89
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
HIGH YIELD TRUST
-------------------------
01/01/97*
TO
12/31/97
-------------------------
Net asset value, beginning
of period............................... $12.50
Income from investment operations:
Net investment income................... 0.46
Net realized and unrealized gain
on investments and foreign currency
transactions......................... 1.13
-----
Total from investment
operations....................... 1.59
Less distributions:
Dividends from net investment income... (0.46)
Distributions from capital gains....... (0.07)
------
Total distributions................ (0.53)
------
Net asset value, end of period............ $13.56
======
Total return....................... 12.68%
Net assets, end of period (000's)......... $92,748
Ratio of operating expenses to
average net assets...................... 0.89%
Ratio of net investment income to
average net assets...................... 7.40%
Portfolio turnover rate................... 75%
- ----------
* Commencement of operations.
The accompanying notes are an integral part of the financial statements.
51
<PAGE> 90
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC BOND TRUST
-------------------------------------------------------------
YEARS ENDED DECEMBER 31, 02/19/93*
----------------------------------------------- TO
1997 1996 1995 1994 12/31/93
-------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of period .............................. $11.94 $11.26 $9.91 $10.88 $10.00
Income from investment operations:
Net investment income ................. 0.67 0.62 0.78 0.57 0.33
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions ...................... 0.57 0.92 1.04 (1.22) 0.55
------ ------ ------ ------ ------
Total from investment
operations ...................... 1.24 1.54 1.82 (0.65) 0.88
Less distributions:
Dividends from net investment
income .............................. (0.71) (0.86) (0.47) (0.28) --
Distributions from capital gains ...... (0.09) -- -- (0.04) --
------ ------ ------ ------ ------
Total distributions ............... (0.80) (0.86) (0.47) (0.32) --
------ ------ ------ ------ ------
Net asset value, end of period ........... $12.38 $11.94 $11.26 $9.91 $10.88
====== ====== ====== ====== ======
Total return ...................... 10.98% 14.70% 19.22% (5.99%) 8.80%+
Net assets, end of period (000's) ........ $365,590 $221,277 $122,704 $84,433 $53,640
Ratio of operating expenses to
average net assets ..................... 0.87% 0.86% 0.92% 0.91% 1.00%(A)
Ratio of net investment income to
average net assets ..................... 7.54% 8.20% 8.76% 7.49% 6.56%(A)
Portfolio turnover rate .................. 131% 165% 181% 197% 356%(A)
</TABLE>
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
52
<PAGE> 91
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL GOVERNMENT BOND TRUST
--------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ........................ $14.97 $14.56 $12.47 $13.93 $12.47 $12.88 $11.59
Income from investment operations:
Net investment income ............ 0.93 0.93 1.16 0.74 0.59 0.42 0.55
Net realized and unrealized gain
(loss) on investments and
foreign currency
transactions ............... (0.57) 0.79 1.62 (1.54) 1.67 (0.16) 1.21
------ ------ ------ ------ ------ ------ ------
Total from investment
operations .................. 0.36 1.72 2.78 (0.80) 2.26 0.26 1.76
Less distributions:
Dividends from net investment
income ......................... (1.23) (1.31) (0.69) (0.30) (0.70) (0.43) (0.46)
Distributions from capital gains.. (0.03) -- -- (0.36) (0.10) (0.24) (0.01)
------ ------ ------ ------ ------ ------ ------
Total distributions ........... (1.26) (1.31) (0.69) (0.66) (0.80) (0.67) (0.47)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ..... $14.07 $14.97 $14.56 $12.47 $13.93 $12.47 $12.88
====== ====== ====== ====== ====== ====== ======
Total return .................. 2.95% 13.01% 23.18% (5.75%) 18.99% 2.27% 15.86%
Net assets, end of period (000's)... $216,117 $249,793 $235,243 $208,513 $196,817 $67,859 $28,251
Ratio of operating expenses to
average net assets ............... 0.93% 0.90% 0.93% 0.96% 1.06% 1.05% 1.14%
Ratio of net investment income to
average net assets ............... 5.87% 6.38% 6.83% 6.10% 5.61% 6.71% 17.28%
Portfolio turnover rate ............ 160% 167% 171% 157% 154% 132% 164%
<CAPTION>
------------------------------------
03/18/88*
---------------------- TO
1990 1989 12/31/88
-------- -------- ---------
<S> <C> <C> <C>
Net asset value, beginning
of period ........................ $10.50 $10.21 $10.03
Income from investment operations:
Net investment income ............ 0.25 0.45 0.14
Net realized and unrealized gain
(loss) on investments and
foreign currency
transactions ............... 1.13 -- 0.04
------ ------ ------
Total from investment
operations .................. 1.38 0.45 0.18
Less distributions:
Dividends from net investment
income ......................... (0.24) (0.09) --
Distributions from capital gains.. (0.05) (0.07) --
------ ------ ------
Total distributions ........... (0.29) (0.16) --
------ ------ ------
Net asset value, end of period ..... $11.59 $10.50 $10.21
====== ====== ======
Total return .................. 13.49% 4.49% 1.79%+
Net assets, end of period (000's)... $11,582 $4,065 $1,355
Ratio of operating expenses to
average net assets ............... 1.21% 1.50% 3.39%(A)
Ratio of net investment income to
average net assets ............... 6.62% 7.15% 3.74%(A)
Portfolio turnover rate ............ 142% 50% 234%(A)
</TABLE>
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
53
<PAGE> 92
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL GROWTH BOND TRUST
-------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------
1997 1996* 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ......................... $10.90 $11.30 $10.10 $11.33 $11.12 $11.47 $10.62
Income from investment operations:
Net investment income (A) ......... 0.67 0.68 0.72 0.72 0.65 0.77 0.83
Net realized and unrealized gain
(loss) on investments ........... 0.28 (0.40) 1.32 (1.22) 0.51 (0.11) 0.85
------ ------ ------ ------ ------ ------ ------
Total from investment operations 0.95 0.28 2.04 (0.50) 1.16 0.66 1.68
Less distributions:
Dividends from net investment
income .......................... -- (0.68) (0.72) (0.72) (0.65) (0.78) (0.83)
Distributions from capital gains .. -- -- (0.12) (0.01) (0.30) (0.23) --
------ ------ ------ ------ ------ ------ ------
Total distributions ............ -- (0.68) (0.84) (0.73) (0.95) (1.01) (0.83)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ...... $11.85 $10.90 $11.30 $10.10 $11.33 $11.12 $11.47
====== ====== ====== ====== ====== ====== ======
Total return ................... 8.72% 2.48% 20.24% (4.49%) 10.56% 5.89% 16.38%
Net assets, end of period (000's) ... $53,990 $45,393 $42,694 $33,618 $41,183 $30,695 $29,326
Ratio of operating expenses to
average net assets (B) ............ 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income to
average net assets ................ 6.30% 6.15% 6.36% 6.29% 5.69% 6.76% 7.54%
Portfolio turnover rate ............. 73% 58% 85% 79% 95% 153% 20%
<CAPTION>
----------------------------------
----------------------------------
1990 1989 1988
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning
of period ......................... $10.82 $10.32 $10.53
Income from investment operations:
Net investment income (A) ......... 0.88 0.90 0.92
Net realized and unrealized gain
(loss) on investments ........... (0.21) 0.50 (0.17)
------ ------ ------
Total from investment operations 0.67 1.40 0.75
Less distributions:
Dividends from net investment
income .......................... (0.87) (0.90) (0.93)
Distributions from capital gains .. -- -- (0.03)
------ ------ ------
Total distributions ............ (0.87) (0.90) (0.96)
------ ------ ------
Net asset value, end of period ...... $10.62 $10.82 $10.32
====== ====== ======
Total return ................... 6.58% 13.88% 7.14%
Net assets, end of period (000's) ... $24,808 $22,768 $19,732
Ratio of operating expenses to
average net assets (B) ............ 0.50% 0.50% 0.50%
Ratio of net investment income to
average net assets ................ 8.25% 8.34% 8.48%
Portfolio turnover rate ............. 41% 69% 29%
</TABLE>
- ----------
* Effective December 31, 1996, the Portfolio changed its name from the Capital
Growth Bond Fund.
(A) After investment adviser expense reimbursement per share of $0.02 for the
year ended December 31, 1997.
(B) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.73% for the year ended December 31, 1997.
The accompanying notes are an integral part of the financial statements.
54
<PAGE> 93
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT QUALITY BOND TRUST
--------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991*
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ...................... $11.89 $12.32 $11.01 $12.12 $11.58 $11.33 $10.74
Income from investment operations:
Net investment income .......... 0.77 0.77 0.77 0.66 0.60 0.63 0.76
Net realized and unrealized gain
(loss) on investments ........ 0.30 (0.50) 1.28 (1.23) 0.53 0.15 0.85
------ ------ ------ ------ ------ ------ ------
Total from investment
operations ................ 1.07 0.27 2.05 (0.57) 1.13 0.78 1.61
Less distributions:
Dividends from net investment
income ....................... (0.83) (0.70) (0.74) (0.54) (0.59) (0.53) (1.02)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ... $12.13 $11.89 $12.32 $11.01 $12.12 $11.58 $11.33
====== ====== ====== ====== ====== ====== ======
Total return ................ 9.75% 2.58% 19.49% (4.64%) 10.01% 7.21% 16.07%
Net assets, end of period (000's) $188,545 $152,961 $143,103 $111,423 $99,474 $60,185 $38,896
Ratio of operating expenses to
average net assets ............. 0.74% 0.73% 0.74% 0.76% 0.77% 0.80% 0.85%
Ratio of net investment income to
average net assets ............. 7.15% 6.95% 6.91% 6.49% 6.03% 6.96% 7.47%
Portfolio turnover rate .......... 47% 68% 137% 140% 33% 59% 115%
<CAPTION>
----------------------------------
----------------------------------
1990 1989 1988
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning
of period ...................... $12.37 $11.55 $10.79
Income from investment operations:
Net investment income .......... 1.12 0.75 0.57
Net realized and unrealized gain
(loss) on investments ........ (1.50) 0.51 0.19
------ ------ ------
Total from investment
operations ................ (0.38) 1.26 0.76
Less distributions:
Dividends from net investment
income ....................... (1.25) (0.44) --
------ ------ ------
Net asset value, end of period ... $10.74 $12.37 $11.55
====== ====== ======
Total return ................ (2.73%) 11.34% 7.09%
Net assets, end of period (000's) $20,472 $26,965 $114,221
Ratio of operating expenses to
average net assets ............. 0.70% 0.83% 0.89%
Ratio of net investment income to
average net assets ............. 8.41% 8.77% 7.97%
Portfolio turnover rate .......... 120% 351% 94%
</TABLE>
- ----------
* The Investment Quality Bond Trust is the successor to the Bond Trust
effective April 23, 1991.
The accompanying notes are an integral part of the financial statements.
55
<PAGE> 94
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES TRUST
-------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ......................... $13.32 $13.65 $12.64 $13.48 $13.05 $12.85 $11.83
Income from investment operations:
Net investment income (B) ......... 0.75 0.83 0.89 0.77 0.48 0.10 0.19
Net realized and unrealized gain
(loss) on investments ........... 0.31 (0.41) 0.99 (0.95) 0.49 0.65 1.40
------ ------ ------ ------ ------ ------ ------
Total from investment operations 1.06 0.42 1.88 (0.18) 0.97 0.75 1.59
Less distributions:
Dividends from net investment
income .......................... (0.88) (0.75) (0.87) (0.51) (0.46) (0.38) (0.53)
Distributions from capital gains .. -- -- -- (0.15) (0.08) (0.17) (0.04)
------ ------ ------ ------ ------ ------ ------
Total distributions ............ (0.88) (0.75) (0.87) (0.66) (0.54) (0.55) (0.57)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ...... $13.50 $13.32 $13.65 $12.64 $13.48 $13.05 $12.85
====== ====== ====== ====== ====== ====== ======
Total return ................... 8.47% 3.38% 15.57% (1.25%) 7.64% 6.19% 14.01%
Net assets, end of period (000's) ... $251,277 $204,053 $216,788 $188,813 $222,072 $125,945 $29,246
Ratio of operating expenses to
average net assets (C) ............ 0.72% 0.71% 0.71% 0.73% 0.75% 0.76% 0.87%
Ratio of net investment income to
average net assets ................ 6.27% 6.36% 6.46% 5.68% 5.05% 6.12% 7.09%
Portfolio turnover rate ............. 110% 178% 212% 387% 213% 141% 233%
<CAPTION>
-------------------------------------
03/18/88*
--------------------- TO
1990 1989** 12/31/88
-------- -------- ----------
<S> <C> <C> <C>
Net asset value, beginning
of period ......................... $10.98 $9.81 $10.03
Income from investment operations:
Net investment income (B) ......... 1.07 0.20 0.07
Net realized and unrealized gain
(loss) on investments ........... (0.13) 1.08 (0.29)
------ ------ ------
Total from investment operations 0.94 1.28 (0.22)
Less distributions:
Dividends from net investment
income .......................... (0.08) (0.11) --
Distributions from capital gains .. (0.01) -- --
------ ------ ------
Total distributions ............ (0.09) (0.11) --
------ ------ ------
Net asset value, end of period ...... $11.83 $10.98 $9.81
====== ====== ======
Total return ................... 8.63% 13.16% (2.19%)+
Net assets, end of period (000's) ... $10,469 $5,905 $344
Ratio of operating expenses to
average net assets (C) ............ 1.04% 0.90% 5.16%(A)
Ratio of net investment income to
average net assets ................ 7.70% 6.66% 1.16%(A)
Portfolio turnover rate ............. 284% 330% 156%(A)
</TABLE>
- ----------
* Commencement of operations.
** The U.S. Government Securities Trust is the successor to the Convertible
Securities Trust effective May 1, 1989.
+ Non-annualized
(A) Annualized
(B) After expense reimbursement per share of $0.01 and $0.06 in 1989 and 1988,
respectively.
(C) The ratio of operating expenses, before reimbursement from the investment
adviser, was 1.62% and 6.16% in 1989 and 1988, respectively.
The accompanying notes are an integral part of the financial statements.
56
<PAGE> 95
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET TRUST
--------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period .......................... $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Income from investment operations:
Net investment income .............. 0.50 0.49 0.55 0.38 0.27 0.33 0.56
Less distributions:
Dividends from net investment
income (0.50) (0.49) (0.55) (0.38) (0.27) (0.33) (0.56)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ....... $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
====== ====== ====== ====== ====== ====== ======
Total return .................... 5.15% 5.05% 5.62% 3.78% 2.69% 3.36% 5.71%
Net assets, end of period (000's) .... $439,714 $363,566 $258,117 $276,674 $132,274 $89,535 $79,069
Ratio of operating expenses to
average net assets ................. 0.54% 0.55% 0.54% 0.57% 0.59% 0.60% 0.60%
Ratio of net investment income to
average net assets ................. 5.03% 4.97% 5.48% 3.93% 2.66% 3.28% 5.65%
<CAPTION>
----------------------------------
----------------------------------
1990 1989 1988
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning
of period .......................... $10.00 $10.00 $10.00
Income from investment operations:
Net investment income .............. 0.75 0.72 0.57
Less distributions:
Dividends from net investment
income (0.75) (0.72) (0.57)
------ ------ ------
Net asset value, end of period ....... $10.00 $10.00 $10.00
====== ====== ======
Total return .................... 7.76% 8.56% 6.77%
Net assets, end of period (000's) .... $85,040 $19,403 $12,268
Ratio of operating expenses to
average net assets ................. 0.57% 0.79% 0.99%
Ratio of net investment income to
average net assets ................. 7.27% 8.26% 6.68%
</TABLE>
The accompanying notes are an integral part of the financial statements.
57
<PAGE> 96
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
LIFESTYLE
AGGRESSIVE 1000 TRUST
--------------------------
01/07/97*
TO
12/31/97
--------------------------
Net asset value, beginning
of period............................ $12.50
Income from investment operations:
Net investment income (B)........... 0.05
Net realized and unrealized gain
on investments.................... 1.26
------
Total from investment
operations.................... 1.31
Less distributions:
Dividends from net investment
income ........................... (0.05)
Distributions from capital gains.... (0.29)
------
Total distributions............. (0.34)
-------
Net asset value, end of period......... $13.47
======
Total return.................... 10.89%+
Net assets, end of period (000's)...... $49,105
Ratio of operating expenses to
average net assets (C)............... 0.00%(A)
Ratio of net investment income to
average net assets................... 1.29%(A)
Portfolio turnover rate................ 67%(A)
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) After investment adviser expense reimbursement per share of $0.007 for the
year ended December 31, 1997.
(C) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.03% for the year ended December 31, 1997.
The accompanying notes are an integral part of the financial statements.
58
<PAGE> 97
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
LIFESTYLE
GROWTH 820 TRUST
--------------------------
01/07/97*
TO
12/31/97
--------------------------
Net asset value, beginning
of period............................ $12.50
Income from investment operations:
Net investment income (B)........... 0.30
Net realized and unrealized gain
on investments.................... 1.38
------
Total from investment
operations.................... 1.68
Less distributions:
Dividends from net investment
income ........................... (0.30)
Distributions from capital gains.... (0.11)
------
Total distributions............. (0.41)
------
Net asset value, end of period......... $13.77
======
Total return.................... 13.84%+
Net assets, end of period (000's)...... $217,158
Ratio of operating expenses to
average net assets (C)............... 0.00%(A)
Ratio of net investment income to
average net assets................... 2.44%(A)
Portfolio turnover rate................ 51%(A)
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) After investment adviser expense reimbursement per share of $0.004 for the
year ended December 31, 1997.
(C) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.03% for the year ended December 31, 1997.
The accompanying notes are an integral part of the financial statements.
59
<PAGE> 98
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
LIFESTYLE
BALANCED 640 TRUST
--------------------------
01/07/97*
TO
12/31/97
--------------------------
Net asset value, beginning
of period............................ $12.50
Income from investment operations:
Net investment income (B)........... 0.50
Net realized and unrealized gain
on investments.................... 1.19
------
Total from investment
operations.................... 1.69
Less distributions:
Dividends from net investment
income ........................... (0.50)
Distributions from capital gains.... (0.13)
------
Total distributions............. (0.63)
------
Net asset value, end of period......... $13.56
======
Total return.................... 14.11%+
Net assets, end of period (000's)...... $186,653
Ratio of operating expenses to
average net assets (C)............... 0.00%(A)
Ratio of net investment income to
average net assets................... 3.24%(A)
Portfolio turnover rate................ 44%(A)
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) After investment adviser expense reimbursement per share of $0.005 for the
year ended December 31, 1997.
(C) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.03% for the year ended December 31, 1997.
The accompanying notes are an integral part of the financial statements.
60
<PAGE> 99
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
LIFESTYLE
MODERATE 460 TRUST
--------------------------
01/07/97*
TO
12/31/97
--------------------------
Net asset value, beginning
of period............................ $12.50
Income from investment operations:
Net investment income (B)........... 0.65
Net realized and unrealized gain
on investments.................... 0.98
------
Total from investment
operations.................... 1.63
Less distributions:
Dividends from net investment
income ........................... (0.65)
Distributions from capital gains.... (0.13)
------
Total distributions............. (0.78)
------
Net asset value, end of period......... $13.35
======
Total return.................... 13.70%+
Net assets, end of period (000's)...... $52,746
Ratio of operating expenses to
average net assets (C)............... 0.00%(A)
Ratio of net investment income to
average net assets................... 3.91%(A)
Portfolio turnover rate................ 39%(A)
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) After investment adviser expense reimbursement per share of $0.005 for the
year ended December 31, 1997.
(C) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.03% for the year ended December 31, 1997.
The accompanying notes are an integral part of the financial statements.
61
<PAGE> 100
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
LIFESTYLE
CONSERVATIVE 280 TRUST
--------------------------
01/07/97*
TO
12/31/97
--------------------------
Net asset value, beginning
of period............................ $12.50
Income from investment operations:
Net investment income (B)........... 0.76
Net realized and unrealized gain
on investments.................... 0.67
-----
Total from investment
operations.................... 1.43
Less distributions:
Dividends from net investment
income ........................... (0.76)
Distributions from capital gains.... (0.16)
------
Total distributions............. (0.92)
------
Net asset value, end of period......... $13.01
======
Total return.................... 12.15%+
Net assets, end of period (000's)...... $19,750
Ratio of operating expenses to
average net assets (C)............... 0.00%(A)
Ratio of net investment income to
average net assets................... 3.95%(A)
Portfolio turnover rate................ 38%(A)
- ----------
* Commencement of operations.
+ Non-annualized
(A) Annualized
(B) After investment adviser expense reimbursement per share of $0.006 for the
year ended December 31, 1997.
(C) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.03% for the year ended December 31, 1997.
The accompanying notes are an integral part of the financial statements.
62
<PAGE> 101
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
PACIFIC RIM EMERGING MARKETS TRUST
Shares Value
------ -----
COMMON STOCKS - 65.32%
AGRICULTURAL OPERATIONS - 0.53%
Austral Enterprises BHD 58,000 $60,841
United Plantations BHD 65,000 67,181
-------
128,022
AIR TRAVEL - 0.58%
Singapore Airlines, Ltd. 21,500 140,314
-------
ALUMINUM - 0.35%
Indian Aluminum, GDR* 45,000 85,500
------
APPAREL & TEXTILES - 1.28%
Esprit Holdings, Ltd. 78,000 25,416
Glorious Sun Enterprises 128,000 33,449
Guangdong Tannery, Ltd. 5,500 632
Mitsubishi Rayon Company, Ltd. 20,000 49,016
Onward Kashiyama 9,000 104,082
PT Indorama Synthetics 223,000 99,336
-------
311,931
AUTOMOBILES - 0.63%
Honda Motor Company 3,000 110,056
Qingling Motors Company 90,000 44,135
-------
154,191
BANKING - 11.81%
Australia and New Zealand
Bank Group 42,100 278,228
Bangkok Bank 13,000 32,399
Bank International Indonesia 417,102 24,647
Bank of Ayuda Public Company, Ltd. 35,750 14,478
Bank of Tokyo Mitsubishi 10,000 137,857
Dao Heng Bank Group 10,000 24,971
Hang Seng Bank 20,000 192,928
HSBC Holdings 31,200 769,028
Housing & Commercial Bank,
Korea, GDR* 26,500 178,875
Krung Thai Bank PLC 25,300 5,254
Lippo Bank 190,000 20,727
Macquarie Bank, Ltd 34,000 262,546
Malayan Bank BHD 27,000 78,442
Overseas Chinese Bank 49,280 286,529
Overseas Union Bank 55,600 212,768
Sanwa Bank 8,000 80,876
Siam Commercial Bank PLC 21,333 24,368
Thai Farmers Bank 9,000 16,355
United Overseas Bank 41,500 230,214
---------
2,871,490
BROADCASTING - 0.99%
BEC World Public Company, Ltd 7,500 29,284
News Corporation 38,200 210,876
-------
240,160
BUILDING MATERIALS & CONSTRUCTION - 0.93%
Citra Marga Nusaphala Persada 588,600 64,211
Henry Walker Group, Ltd. 68,400 82,472
New World Infrastructure, Ltd.* 35,045 78,918
-------
225,601
BUSINESS SERVICES - 0.55%
Keppel Telecom & Transport 169,000 108,288
Kinseki 3,000 13,533
Matichon Public Company, Ltd. 22,000 11,880
-------
133,701
CHEMICALS - 0.98%
Dainippon Ink & Chemical,
Incorporated 20,000 50,548
Denki Kogyo Company 4,000 13,020
ICI Australia, Ltd. 9,000 63,057
IOI Corporation 93,000 30,127
Toray Industries, Incorporated 18,000 80,646
-------
237,398
COMPUTERS & BUSINESS EQUIPMENT - 0.48%
PT Multipolar Corporation 2,522,000 68,782
Shinawatra C. Communications 20,000 49,014
-------
117,796
CONGLOMERATES - 4.27%
CSR, Ltd. 59,500 201,651
Hutchinson Whampoa 70,000 439,024
Multi-Purpose Holdings BHD 98,000 25,196
Singapore Technologies
Engineering, Ltd.* 302,806 228,160
Swire Pacific 20,000 109,692
Wheelock and Company 30,000 35,037
---------
1,038,760
CONSTRUCTION MATERIALS - 0.23%
Keppel International Engineering, Ltd. 90,000 38,446
Nikko Company 1,000 2,566
PT Semen Cibinong 318,000 14,455
------
55,467
CONSTRUCTION & MINING EQUIPMENT - 0.20%
Cahya Mata Sarawak 70,600 43,382
Sumitomo Densetsu 1,000 5,629
------
49,011
CONTAINERS & GLASS - 0.64%
Kian Joo Can Factory BHD 48,000 42,700
Malaysian Pacific Industries BHD 26,000 62,502
Nippon Sheet Glass 6,000 8,363
Rengo Company 19,000 41,472
-------
155,037
DRUGS & HEALTH CARE - 0.32%
Fujisawa Pharmaceutical Company, Ltd. 9,000 78,579
------
ELECTRIC UTILITIES - 2.81%
BSES, Ltd., GDR 17,000 295,460
China Light and Power 30,000 166,473
Hong Kong Electric 30,000 114,015
Hong Kong & China Gas Company, Ltd. 55,000 106,465
-------
682,413
ELECTRICAL EQUIPMENT - 0.44%
Matsushita Communication
Industrial Company, Ltd. 4,000 106,609
-------
The accompanying notes are an integral part of the financial statements.
63
<PAGE> 102
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
ELECTRONICS - 4.05%
Hosiden Corporation* 12,000 $93,743
Komatsu Electronic Metals
Company, Ltd. 5,000 80,417
K.R. Precision Public Company 37,000 139,855
LG Information & Communication, Ltd. 3,218 90,180
Samsung Electronics Company 3,253 73,696
Taiyo Yuden Company 5,000 34,656
TDK Corporation 4,000 301,447
Thakral Corporation 207,000 107,640
Tokyo Electron, Ltd. 2,000 64,027
-------
985,661
FINANCIAL SERVICES - 2.06%
China Resources Enterprises, Ltd. 28,000 62,511
Commerce Asset Holdings 93,600 44,761
Daiwa Securities 8,000 27,571
Henderson Investors 50,000 39,360
Nichiei Company 700 74,519
Nomura Securities Company, Ltd. 9,000 119,936
Shohkoh Fund & Company 300 91,445
Singapore Finance 59,400 40,528
-------
500,631
FOOD & BEVERAGES - 1.92%
Fraser and Neave 28,500 123,435
Goodman Fielder, Ltd. 118,500 188,447
Guangdong Brewery* 13,749 1,952
KFC Holdings 55,000 89,086
Tokuyama Corporation 12,000 28,858
Vitasoy International 33,810 33,811
-------
465,589
FOREST PRODUCTS - 0.62%
Fletcher Challenge 43,000 150,832
-------
GOLD - 0.51%
Normandy Mining, Ltd. 127,500 123,816
-------
HOTELS & RESTAURANTS - 0.55%
Orchard Parade Holdings 77,000 44,542
Royal Company 6,000 88,688
-------
133,230
HOUSEHOLD APPLIANCES - 0.19%
Guangdong Kelon Elec Holdings 45,000 46,167
------
INDUSTRIAL MACHINERY - 2.83%
Amada Company, Ltd. 15,000 55,717
Daiwa Industries 5,000 19,683
Keppel Corporation 37,125 106,606
Mitsubishi Heavy Industries 15,000 62,495
Mori Seiki Company 8,000 82,714
Reliance Industries, Ltd., GDR 34,000 280,500
Thai Engine Manufacturing Public
Company, Ltd. 13,500 22,430
THK Company, Ltd. 6,000 58,360
-------
688,505
INSURANCE - 1.23%
Mitsui Marine and Fire 15,000 76,511
Nippon Fire and Marine 15,000 56,177
Reinsurance Australia Corporation, Ltd. 64,000 166,848
-------
299,536
LEISURE TIME - 1.21%
Aristocrat Leisure, Ltd. 90,000 178,905
Crown, Ltd.* 96,734 42,872
Guangdong Investment, Ltd. 110,000 73,106
-------
294,883
METAL & METAL PRODUCTS - 1.03%
Amtek Engineering, Ltd. 124,000 75,040
Kitagawa Industries Companies, Ltd. 2,300 15,853
Simsmetal, Ltd. 17,000 98,621
Tambang Timah 56,800 60,931
-------
250,445
MINING - 0.79%
Lanna Lignite Public Company, Ltd. 24,500 47,830
Savage Resources, Ltd. 156,800 73,580
Tanjong 42,00 69,649
-------
191,059
MISCELLANEOUS SERVICES - 1.54%
Alsons Consolidated Resources,
Incorporated* 2,900,000 81,630
Boustead Holdings BHD 73,000 60,435
Cosco Pacific, Ltd. 32,000 26,016
Eastern and Oriental BHD 49,500 10,181
Lung Kee Metal Holdings, Ltd. 217,300 195,570
-------
373,832
NON-FERROUS METALS - 1.82%
MIM Holdings, Ltd. 56,600 34,676
MNI Holdings BHD 36,000 49,055
Straits Trading Company 77,000 91,368
PT Tambang Timah, GDR 6,000 62,400
WMC, Ltd. 59,000 205,725
-------
443,224
OFFICE FURNISHINGS & SUPPLIES - 0.03%
Catena Corporation 3,000 8,501
-----
PETROLEUM SERVICES - 1.64%
Broken Hill Proprietary Company 19,300 179,247
National Petrochemical 99,000 50,374
Novus Petroleum 64,700 168,673
-------
398,294
PUBLISHING - 0.01%
Land and House 8,263 1,647
-----
REAL ESTATE - 7.51%
Amoy Properties 68,000 59,672
Cheung Kong Holdings 40,000 261,969
China Resources Beijing 40,000 19,099
Citic Pacific, Ltd. 28,000 111,292
City Developments 35,000 161,970
Great Eagle Holdings 15,000 21,003
The accompanying notes are an integral part of the financial statements.
64
<PAGE> 103
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
REAL ESTATE - CONTINUED
Henderson China Holding, Ltd. 20,544 $16,437
Henderson Land Development 28,000 131,888
Hysan Development Company, 40,000 79,752
Mitsubishi Estate Company, Ltd. 6,000 65,252
Mitsui Fudosan Company 10,000 96,500
New World Development Company 30,000 103,755
PT Bhuwanatala Indah Permai* 370,000 10,091
Pakuwon Jati 376,500 30,805
Parkway Holdings 91,000 205,162
Singapore Land 52,000 114,150
Sun Hung Kai Properties 30,000 209,059
United Overseas Land 99,000 83,405
Wharf Holdings 20,000 43,877
---------
1,825,138
RETAIL TRADE - 1.37%
Circle K Japan Company 3,980 190,511
Isetan Company, Ltd. 12,000 50,088
Matahari Putra Prima 193,000 15,791
Mitsubishi Corporation 8,000 63,108
Sa Sa International Holdings, Ltd. 69,000 14,247
-------
333,745
SANITARY SERVICES - 0.24%
Puncak Niaga Holdings BHD* 77,000 57,411
------
STEEL - 0.07%
Southern Steel BHD 24,200 16,426
------
SOFTWARE - 2.90%
Datacraft Asia, Ltd. 190,000 490,200
NTT Data Communication
Systems Company 4 215,363
-------
705,563
TELECOMMUNICATION SERVICES - 0.39%
China Telecom, Ltd.* 8,000 13,731
Jasmine International Public
Company, Ltd. 58,000 11,082
Mahanagar Telephone Nigam, Ltd., GDR* 3,000 46,530
Telstra Corporation, Ltd.* 11,000 23,228
------
94,571
TELEPHONE - 2.70%
Hong Kong Telecomm 190,000 391,083
Nippon Telegraph and Telephone
Corporation 20 171,555
PT Telekomunikasi Indonesia 175,000 93,068
-------
655,706
TOBACCO - 0.10%
HM Sampoerna 33,900 25,579
------
TOTAL COMMON STOCKS
(Cost: $24,727,545) $15,881,971
----------
WARRANTS - 0.57%*
BANKING - 0.00%
Bank International Indonesia
(Expiration date 01/17/00; strike
price IDR 1,000) 19,796 270
---
CHEMICALS - 0.10%
Shin Etsu Chemical Company (Expiration
date 08/01/00; strike price Y 1,917) 18 24,750
------
COMPUTERS & BUSINESS EQUIPMENT - 0.09%
Nippon Comsys Corporation (Expiration
date 08/31/99; strike price Y 1,353) 155 22,913
------
CONSTRUCTION & MINING EQUIPMENT - 0.01%
Cahya Mata Sarawak BHD (Expiration
date 06/16/01; strike price MYR 18.10) 26,000 2,607
-----
FINANCIAL SERVICES - 0.31%
Credit Saison Company, Ltd. (Expiration
date 02/15/00; strike price Y 2,094.80) 18 40,275
Promise-Tamporo Company (Expiration
date 02/08/00; strike price Y 4,566.40) 15 35,813
------
76,088
FOOD & BEVERAGES - 0.01%
KFC Holdings BHD (Expiration date
05/07/01; strike price MYR 9.50) 18,333 1,885
-----
LEISURE TIME - 0.01%
Guangdong Investment, Ltd. (Expiration
date 07/30/99; strike price HKD 8.00) 11,000 1,505
-----
MINING - 0.01%
Normandy Mining, Ltd. (Expiration
date 04/30/01; strike price AUD 2.50) 13,200 1,505
-----
Savage Resources, Ltd. (Expiration
date 11/30/98; strike price AUD 1.25) 9,400 214
-----
1,719
MISCELLANEOUS SERVICES - 0.01%
Elpis, Ltd. (Expiration date 07/01/99;
strike price Y 2,367) 10 2,625
-----
PHOTOGRAPHY - 0.01%
Canon Sales Company, Incorporated
(Expiration date 11/22/99;
strike price Y 2,266.30) 100 1,916
-----
RAILROADS & EQUIPMENT - 0.00%
Hankyu Corporation (Expiration date
02/05/98; strike price Y 610.5) 15 $375
---
The accompanying notes are an integral part of the financial statements.
65
<PAGE> 104
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
WARRANTS - CONTINUED
REAL ESTATE - 0.00%
Great Eagles Holdings (Expiration date
11/30/98; strike price HKD 15.00) 3,000 387
Hysan Development Company, Ltd.
(Expiration date 04/30/98;
strike price HKD 25) 1,250 8
United Overseas Land, Ltd. (Expiration
date 05/28/01; strike price SGD 1.60) 4,700 628
-----
1,023
RETAIL TRADE - 0.00%
Takashimaya Company, Ltd. (Expiration
date 07/02/98; strike price Y 1,569) 7 350
---
TOTAL WARRANTS (Cost: $150,466) $138,026
-------
RIGHTS - 0.01%
LEISURE TIME - 0.01%
Crown, Ltd. (Expiration date
02/04/98; strike price AUD 0.50) 35,176 2,980
-----
TOTAL RIGHTS (Cost: $0) $2,980
-----
Principal
Amount Value
------ -----
CORPORATE BONDS - 0.52%
OFFICE FURNISHINGS & SUPPLIES - 0.52%
Ricoh Company, Ltd.,
1.90% due 03/31/98 $13,000,000 $127,441
-------
TOTAL CORPORATE BONDS
(Cost: $124,290) $127,441
-------
CONVERTIBLE BONDS - 5.43%
CHEMICALS - 0.21%
Shin Etsu Chemical Company,
0.40% due 09/30/05 Y 5,000,000 51,696
------
DRUGS & HEALTH CARE - 0.91%
Takeda Chemical Industries,
1.90% due 09/30/98 17,000,000 221,207
-------
ELECTRICAL EQUIPMENT - 0.58%
NEC Corporation,
1.00% due 09/30/11 13,000,000 110,416
2.10% due 09/30/98 4,000,000 31,707
-------
142,123
ELECTRONICS - 1.48%
Sony Corporation,
1.40% due 03/31/05 20,000,000 227,464
Tokyo Electron,
0.90% due 01/13/02 12,000,000 131,699
-------
359,163
FINANCIAL SERVICES - 0.52%
Arab Malaysian Finance,
7.50% due 05/25/02 MYR 76,000 5,178
MTI Capital, Ltd.,
0.50% due 10/01/07 Y 12,000,000 44,804
STB Cayman Capital,
0.50% due 10/01/07 5,000,000 28,337
Shanghai Investment Holdings,
Ltd., 1.00% due 06/12/02 $50,000 48,875
-------
127,194
MINING - 0.53%
Mitsui Mining & Smelting,
0.25% due 09/30/01 Y 15,000,000 130,103
-------
MISCELLANEOUS - 0.48%
AB International Cayman Trust,
0.50& due 08/01/07 6,000,000 33,315
Mitsui & Company, Ltd.,
1.05% due 09/30/09 10,000,000 76,587
Multi-Purpose Holdings,
3.00% due 01/13/02 MYR 90,000 5,785
-------
115,687
OFFICE FURNISHINGS & SUPPLIES - 0.21%
Ricoh Company, Ltd.,
6.35% due 03/31/03 5,000,000 52,041
------
RETAIL TRADE - 0.50%
Marui Company, Ltd.,
1.15% due 01/31/12 15,000,000 122,349
-------
TOTAL CONVERTIBLE BONDS
(Cost: $1,520,448) $1,321,563
---------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 4.67%
$1,136,665 Navigator Securities
Lending Trust, 5.74% $1,136,665
---------
REPURCHASE AGREEMENT - 23.46%
$5,705,000 Repurchase Agreement with
State Street Bank & Trust Company
dated 12/31/97at 5.00%, to be
repurchased at $5,706,585 on
01/02/98, collateralized by U.S.
$5,755,000 Treasury Strips,
5.00% due 02/15/99 (valued at
$5,927,650, including interest) $5,705,000
---------
TOTAL INVESTMENTS (Pacific Rim
Emerging Markets Trust) (Cost: $33,364,414) $24,313,646
==========
The accompanying notes are an integral part of the financial statements.
66
<PAGE> 105
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
SCIENCE & TECHNOLOGY TRUST
Shares Value
------ -----
COMMON STOCKS - 74.98%
BUSINESS SERVICES - 10.20%
America Online, Incorporated* 15,000 $1,337,812
BISYS Group, Incorporated 50,000 1,662,500
First Data Corporation 70,000 2,047,500
Gartner Group, Incorporated* 25,000 931,250
Nokia Corporation, ADR 10,000 700,000
Security Dynamics Technologies,
Incorporated 20,000 715,000
Sun Guard Data Systems* 30,000 930,000
---------
8,324,062
COMPUTERS & BUSINESS EQUIPMENT - 10.64%
3Com Corporation* 20,000 698,750
Affiliated Computer Services,
Incorporated 50,000 1,315,625
Cisco Systems, Incorporated* 25,000 1,393,750
Compaq Computer Corporation 10,000 564,375
Dell Computer Corporation* 8,000 672,000
EMC Corporation* 50,000 1,371,875
E*Trade Group, Incorporated 40,000 920,000
Hewlett-Packard Company 10,000 625,000
Newbridge Networks Corporation* 15,000 523,125
Sequent Computer Systems,
Incorporated 30,000 600,000
---------
8,684,500
DRUGS & HEALTH CARE - 0.97%
ALZA Corporation 25,000 795,312
-------
ELECTRICAL EQUIPMENT - 2.77%
Anixter International, Incorporated 35,000 577,500
ASM Lithography Holding 25,000 1,687,500
---------
2,265,000
ELECTRONICS - 19.44%
ADC Telecommunications,
Incorporated* 10,000 417,500
Adaptec, Incorporated* 40,000 1,485,000
Altera Corporation 45,000 1,490,625
Analog Devices, 75,000 2,076,563
Incorporated
DSC Communications Corporation 25,000 600,000
Electronics For Imaging, Incorporated 70,300 1,168,737
KLA-Tencor Corporation 25,000 965,625
Lam Research Corporation 30,000 877,500
Linear Technology Corporation 20,000 1,152,500
Maxim Integrated Products,
Incorporated* 56,900 1,963,050
Motorola, Incorporated 10,000 570,625
Texas Instruments, Incorporated 30,000 1,350,000
Xilinx, Incorporated* 50,000 1,753,125
----------
15,870,850
INDUSTRIAL MACHINERY - 1.84%
Applied Materials, Incorporated* 50,000 1,506,250
---------
MISCELLANEOUS - 2.11%
Cendant Corporation 50,000 1,718,750
---------
SOFTWARE - 17.53%
Adobe Systems, Incorporated 10,000 412,500
BMC Software, Incorporated 20,000 1,312,500
Mircochip Technology, Incorporated 45,000 1,350,000
Microsoft Corporation* 13,000 1,680,250
Networks Associates, Incorporated 40,000 2,115,000
Parametric Technology Corporation 50,000 2,368,750
Platinum Technology, Incorporated* 20,000 565,000
Sterling Commerce, Incorporated 25,000 960,938
Summit Design, Incorporated 100,000 1,037,500
Synopsys, Incorporated* 50,000 1,787,500
Veritas Software Company* 5,000 255,000
VIASOFT, Incorporated 6,500 274,625
Visio Corporation 5,000 191,875
----------
14,311,438
TELECOMMUNICATION SERVICES - 7.93%
Advanced Fibre Communications 22,200 646,575
Ascend Communications, Incorporated* 25,000 612,500
CIENA Corporation 15,000 916,875
Paging Network, Incorporated 80,000 860,000
Pairgain Technologies, Incorporated 50,000 968,750
QUALCOMM, Incorporated 25,000 1,262,500
Transaction Network Services,
Incorporated 70,000 1,207,500
---------
6,474,700
TELEPHONE - 1.53%
MCI Communications Corporation 15,000 642,188
WorldCom, Incorporated 20,000 605,000
---------
1,247,188
TOTAL COMMON STOCKS
(Cost: $62,809,019) $61,198,050
----------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENTS - 25.02%
$2,445,000 Federal Farm Credit Bank,
5.64% due 02/12/98 $2,428,912
Federal Home Loan Bank,
562,000 4.75% due 01/02/98 561,926
513,000 5.66% due 02/13/98 509,532
3,000,000 Federal Home Loan Mortgage
Corporation, 5.70% due 01/14/98 2,993,825
13,925,496 Navigator Securities
Lending Trust, 5.74% 13,925,496
----------
20,419,691
TOTAL INVESTMENTS (Science &
Technology Trust) (Cost: $83,228,710) $81,617,741
==========
The accompanying notes are an integral part of the financial statements.
67
<PAGE> 106
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
INTERNATIONAL SMALL CAP TRUST
Shares Value
------ -----
COMMON STOCKS - 65.78%
AGRICULTURAL MACHINERY - 0.46%
Kverneland Gruppen AS 38,450 $624,712
-------
AGRICULTURAL PRODUCTS - 0.27%
Perusahaan Perkebunan 644,600 366,250
-------
AIR TRAVEL - 1.16%
Ryanair Holdings PLC, ADR* 33,850 850,481
Virgin Express Holdings PLC, ADR* 34,650 718,987
---------
1,569,468
AUTO SERVICES - 0.23%
Sixt AG 3,925 314,183
-------
BANKING - 1.45%
Banco de A Edwards, Series A, ADR 46,575 791,775
Banco Latinoamericano
de Exportaciones SA, Series E 28,350 1,172,981
---------
1,964,756
BROADCASTING - 2.05%
Editoriale L'Espresso SPA 80,000 384,398
Flextech PLC* 236,025 2,023,643
Sky Network Television, Ltd.* 242,200 364,240
---------
2,772,281
BUSINESS SERVICES - 4.71%
Altran Technologies SA 7,575 2,315,860
Brunel International* 20,525 392,755
Kobenhavn Lufthavne 22,825 2,748,234
Select Appointments Holdings PLC 97,475 896,575
---------
6,353,424
COMPUTERS & BUSINESS EQUIPMENT - 2.70%
Fuji S Ware ABC 26,500 907,214
Psion PLC 370,750 2,740,306
---------
3,647,520
CONGLOMERATES - 2.43%
Misys 108,471 3,278,211
---------
CONTAINERS & GLASS - 2.65%
Compania Cervecerias Unidas SA, ADR 41,725 1,225,672
International Container Terminal
& Services 425,650 52,549
SCHMALBACH LUBECA AG 13,925 2,295,096
---------
3,573,317
DRUGS & HEALTH CARE - 1.57%
Schwarz Pharma AG 31,575 2,123,780
---------
ELECTRONICS - 2.11%
Pricer AB* 8,750 161,998
Toolex-Alpha* 30,500 308,362
VTech Holdings, Ltd. 804,800 2,373,168
---------
2,843,528
FINANCIAL SERVICES - 2.38%
JBA Holdings 189,225 3,216,801
---------
FOOD & BEVERAGES - 2.62%
Raisio Tehtaat Oy PLC 29,800 3,537,108
---------
HOTELS & RESTAURANTS - 9.65%
Doutor Coffee Company 36,000 923,642
Grupo Posadas SA* 1,370,000 950,623
J.D. Wetherspoon PLC 608,265 3,326,921
Pizza Express 294,025 3,602,706
Regent Inns PLC 172,550 926,762
Tele Pizza* 40,825 3,296,012
----------
13,026,666
HOUSEHOLD APPLIANCES - 3.42%
DFS Furniture Company 152,650 1,303,784
Hunter Douglas 52,425 1,835,709
Industrie Natuzzi SPA, ADR 71,425 1,473,141
---------
4,612,634
INDUSTRIAL MACHINERY - 3.66%
IHC Caland 28,275 1,466,984
KCI Konecranes 36,750 1,213,550
International
Noritsu Koki Company 43,800 1,080,156
Tomra Systems AS 52,750 1,178,444
---------
4,939,134
INTERNATIONAL OIL - 1.76%
Cairn Energy PLC* 196,450 1,593,985
Gulf Indonesia Resources, Ltd.* 35,575 782,650
---------
2,376,635
LEISURE TIME - 3.19%
Capital Radio 167,675 1,379,521
Cinar Films, Incorporated, Class B* 57,000 2,215,875
Village Roadshow 279,000 707,351
---------
4,302,747
MISCELLANEOUS SERVICES - 1.91%
BTG PLC 62,050 698,133
Plettac AG 2,310 319,736
Rofin-Sinar Technologies, Incorporated* 129,300 1,567,762
---------
2,585,631
OFFICE FURNISHINGS & SUPPLIES - 0.84%
Turbon International AG 52,600 1,137,408
---------
PAPER - 1.15%
Guilbert SA 10,850 1,546,781
---------
PETROLEUM SERVICES - 2.10%
Coflexip SA, ADR 36,375 2,018,813
Petroleum Geological Services AS, ADR* 12,500 812,612
---------
2,831,425
RETAIL TRADE - 4.06%
Beter Bed Holdings 14,350 276,717
Brito Borneo Pets 415,325 2,906,050
Bulgari SPA 280,000 1,424,534
Douglas Holding AG 17,075 515,396
Narvesen ASA 16,000 353,110
---------
5,475,807
The accompanying notes are an integral part of the financial statements.
68
<PAGE> 107
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
SOFTWARE - 2.15%
Dassault Systems SA 62,825 $1,915,492
Eidos PLC, ADR* 25,000 306,250
Nippon System Development 33,000 677,338
---------
2,899,080
TELECOMMUNICATION SERVICES - 2.09%
Asia Satellite Telecommunications
Holdings, ADR 36,700 617,019
Grupo Iusacell SA De CV, ADR* 101,700 2,205,618
---------
2,822,637
TELEPHONE - 3.01%
Cellular Communications International* 56,350 2,634,362
Netcom Systems AB* 66,500 1,428,009
---------
4,062,371
TOTAL COMMON STOCKS
(Cost $82,095,825) $88,804,295
----------
PREFERRED STOCKS - 4.33%
AUTOMOBILES - 2.22%
Porsche AG* 1,800 3,001,751
---------
FINANCIAL SERVICES - 2.10%
Marschollek Lautenschlaeger und
Partner AG 11,230 2,840,351
---------
TOTAL PREFERRED STOCKS
(Cost: $3,943,616) $5,842,102
---------
WARRANTS - 0.02%*
ELECTRONICS - 0.02%
Gold Peak Industries, Ltd. (Expiration
date 08/06/00; strike price HKD 5.25) 250,000 23,552
------
TOTAL WARRANTS (Cost: $0) $23,552
------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 7.57%
$10,214,498 Navigator Securities
Lending Trust, 5.74% $10,214,498
----------
REPURCHASE AGREEMENT - 22.31%
$30,113,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.00%, to be
repurchased at $30,121,365 on
01/02/98, collateralized by
$24,440,000 U.S. Treasury Bonds,
10.75% due 2/15/03 (valued at
$31,703,262, including interest) $30,113,000
----------
TOTAL INVESTMENTS (International
Small Cap Trust) (Cost: $126,366,939) $134,997,447
===========
EMERGING GROWTH TRUST
COMMON STOCKS - 75.73%
AEROSPACE - 0.79%
Gulfstream Aerospace Corporation* 92,700 $2,711,475
---------
AGRICULTURAL PRODUCTS - 0.34%
U.S. Home & Garden, Incorporated* 280,000 1,155,000
---------
APPAREL & TEXTILES - 1.48%
Interface, Incorporated 81,000 2,349,000
Westpoint Stevens, Incorporated* 58,000 2,740,500
---------
5,089,500
AUTO SERVICES - 0.79%
Budget Group, Incorporated* 79,000 2,730,438
---------
BANKING - 2.66%
Bank United Corporation 55,400 2,711,138
City National Corporation 86,600 3,198,787
Cullen Frost Bankers, Incorporated 53,500 3,246,781
---------
9,156,706
BROADCASTING - 2.03%
Central European Media
Enterprises, Ltd.* 105,500 2,663,875
Heftel Broadcasting Corporation* 39,700 1,855,975
Metro Networks, Incorporated* 75,400 2,469,350
---------
6,989,200
BUSINESS SERVICES - 9.57%
DeVRY, Incorporated* 74,600 2,377,875
Harbinger Corporation* 64,200 1,805,625
Outdoor Systems, Incorporated* 104,050 3,992,919
PMT Services, Incorporated* 198,500 2,754,187
Pre-Paid Legal Services, Incorporated* 87,000 2,974,313
Robert Half International, Incorporated* 127,199 5,087,960
SITEL Corporation* 261,500 2,386,188
SunGuard Data Systems, Incorporated* 103,400 3,205,400
Universal Outdoor Holdings,
Incorporated* 65,200 3,390,400
Valassis Communications, Incorporated* 80,000 2,960,000
Vincam Group, Incorporated* 74,050 1,971,581
----------
32,906,448
COMPUTERS & BUSINESS EQUIPMENT - 1.64%
Hypercom Corporation* 166,200 2,347,575
Network Appliance, Incorporated* 92,800 3,294,400
---------
5,641,975
CRUDE PETROLEUM & NATURAL GAS - 3.24%
Chieftain International, Incorporated* 123,500 2,624,375
Forcenergy, Incorporated* 99,000 2,592,563
Global Industries, Incorporated* 167,000 2,839,000
KCS Energy, Incorporated 117,900 2,446,425
Meridian Resources Corporation 67,400 644,512
----------
11,146,875
The accompanying notes are an integral part of the financial statements.
69
<PAGE> 108
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
DRUGS & HEALTH CARE - 6.74%
ChiRex, Incorporated* 125,000 $2,203,125
FPA Medical Management,
Incorporated* 118,300 2,203,338
Gilead Sciences, Incorporated* 65,400 2,501,550
Mid Atlantic Medical Services,
Incorporated* 166,400 2,121,600
National Surgery Centers,
Incorporated* 98,400 2,583,000
Novacare, Incorporated* 208,300 2,720,919
Sangstat Medical Corporation* 85,500 3,462,750
Sepracor, Incorporated* 67,200 2,692,200
Watson Pharmaceuticals,
Incorporated* 82,700 2,682,581
----------
23,171,063
ELECTRONICS - 5.89%
ATMI, Incorporated 104,700 2,538,975
Etec Systems, Incorporated* 60,200 2,799,300
KLA-Tencor Corporation* 59,100 2,282,737
Maxim Integrated Products,
Incorporated* 203,200 7,010,400
Technology Solutions Company* 102,850 2,712,669
Tracor, Incorporated* 95,100 2,888,662
Uniphase Corporation* 400 16,550
----------
20,249,293
FINANCIAL SERVICES - 3.36%
Allmerica Financial Corporation 65,990 3,295,376
ARM Financial, Incorporated 118,400 3,122,800
Legg Mason, Incorporated 49,132 2,748,321
T.Rowe Price Associates, Incorporated 37,900 2,382,962
----------
11,549,459
FOOD & BEVERAGEE - 0.36%
Hain Food Group, Incorporated* 135,200 1,242,150
---------
HOMEBUILDERS - 0.73%
Fairfield Communities, Incorporated* 57,000 2,515,125
---------
HOTELS & RESTAURANTS - 1.77%
Promus Hotel Corporation* 54,800 2,301,600
Vistana, Incorporated* 164,800 3,790,400
---------
6,092,000
INSURANCE - 0.96%
AmerUS Life Holdings, Incorporated 90,000 3,318,750
---------
LEISURE TIME - 0.74%
Premier Parks, Incorporated* 63,000 2,551,500
---------
METAL & METAL PRODUCTS - 0.80%
Metals USA, Incorporated* 180,000 2,745,000
---------
MISCELLANEOUS SERVICES - 0.54%
Alternative Living Services,
Incorporated* 63,200 1,868,350
---------
OFFICE FURNISHINGS & SUPPLIES - 2.78%
Corporate Express, Incorporated* 197,000 2,536,375
Miller Herman, Incorporated 77,500 4,228,595
U.S. Office Products Company* 143,000 2,806,375
---------
9,571,345
PETROLEUM SERVICES - 3.36%
Nabors Industries, Incorporated* 99,900 3,140,606
Petroleum Geo Services AS, ADR* 72,100 4,668,475
Pride International, Incorporated* 148,200 3,742,050
----------
11,551,131
POLLUTION CONTROL - 1.78%
Casella Waste Systems, Incorporated* 125,000 3,296,875
Allied Waste Industries, Incorporated* 121,000 2,820,812
---------
6,117,687
REAL ESTATE - 0.72%
Security Capital Pacific Trust 102,028 2,474,179
---------
RETAIL TRADE - 5.33%
Borders Group, Incorporated* 152,500 4,775,156
Central Garden & Pet Company* 109,000 2,861,250
Family Dollar Stores, Incorporated 89,500 2,623,469
Payless ShoeSource, Incorporated* 41,800 2,805,825
Staples, Incorporated* 99,000 2,747,250
Wilmar Industries, Incorporated* 105,000 2,506,875
----------
18,319,825
SOFTWARE - 11.80%
Avant Corporation* 106,000 1,775,500
BMC Software, Incorporated* 76,600 5,026,875
Cambridge Technology Partners,
Incorporated* 59,700 2,485,013
JDA Software Group, Incorporated* 78,000 2,730,000
Manugistics Group, Incorporated* 45,000 2,008,125
National Instruments Corporation* 107,400 3,114,600
PeopleSoft, Incorporated* 153,000 5,967,000
Pinnacle Systems, Incorporated* 84,800 2,067,000
Platinum Technology, Incorporated* 117,000 3,305,250
Sterling Commerce, Incorporated* 75,000 2,882,812
System Software Associates,
Incorporated* 200,000 1,750,000
Tecnomatix Technologies, Ltd.* 91,000 3,071,250
Transaction Systems Architects,
Incorporated* 115,800 4,400,400
----------
40,583,825
TELECOMMUNICATION SERVICES - 3.25%
Intermedia Communications,
Incorporated* 60,000 3,645,000
McLeodUSA, Incorporated* 95,100 3,043,200
Paging Network, Incorporated* 217,000 2,332,750
Teledata Communications,
Incorporated* 117,800 2,149,850
----------
11,170,800
The accompanying notes are an integral part of the financial statements.
70
<PAGE> 109
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
TRANSPORTATION - 2.30%
Coach USA, Incorporated* 84,200 $2,820,700
Swift Transportation, Incorporated* 88,000 2,849,000
Heartland Express, Incorporated* 82,800 2,225,250
---------
7,894,950
TOTAL COMMON STOCKS
(Cost: $217,450,691) $260,514,049
-----------
WARRANTS - 0.01%*
FINANCIAL SERVICES - 0.01%
Security Capital Group, Incorporated
(Expiration date 09/18/98;
strike price $28.00) 4,897 25,709
------
TOTAL WARRANTS (Cost: $0) $25,709
------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENTS - 22.19%
$66,418,106 Navigator Securities
Lending Trust, 5.74% $66,418,106
10,000,000 U.S. Treasury Bills,
5.367% due 03/05/98 9,906,069
----------
76,324,175
REPURCHASE AGREEMENT - 2.07%
$7,128,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.75%, to be
repurchased at $7,130,277 on
01/02/98, collateralized by
$7,270,000 U.S. Treasury Notes,
4.75% due 10/31/98 (valued at
$7,329,586, including interest) $7,128,000
---------
TOTAL INVESTMENTS (Emerging
Growth Trust) (Cost: $300,902,866) $343,991,933
===========
PILGRIM BAXTER GROWTH TRUST
Shares Value
------ -----
COMMON STOCKS - 94.94%
APPAREL & TEXTILES - 2.11%
Jones Apparel Group, Incorporated* 21,900 $941,700
Nautica Enterprises, Incorporated* 46,900 1,090,425
---------
2,032,125
AUTOMOBILES - 1.33%
Harley Davidson, Incorporated 46,900 1,283,888
---------
BROADCASTING - 4.42%
Clear Channel Communications* 35,300 2,804,144
Jacor Communications, Incorporated* 27,400 1,455,625
---------
4,259,769
BUSINESS SERVICES - 16.19%
Accustaff, Incorporated* 48,200 1,108,600
America Online, Incorporated* 16,300 1,453,756
Apollo Group, Incorporated* 45,200 2,135,700
Computer Horizons Corporation 17,700 796,500
Corrections Corporation of America* 62,800 2,327,525
Security Dynamics Technologies,
Incorporated* 53,400 1,909,050
Gartner Group, Incorporated* 34,400 1,281,400
Paychex, Incorporated 52,600 2,662,875
Quintiles Transnational Corporation* 50,300 1,923,975
----------
15,599,381
CHEMICALS - 0.18%
Zoltek Companies, Incorporated* 6,400 178,400
-------
COMPUTERS & BUSINESS EQUIPMENT - 1.30%
CDW Computer Centers, Incorporated* 24,000 1,251,000
---------
CRUDE PETROLEUM & NATURAL GAS - 1.78%
BJ Services Company* 14,000 1,007,125
Cliffs Drilling Company 14,200 708,225
---------
1,715,350
DRUGS & HEALTH CARE - 7.41%
Dura Pharmaceuticals, Incorporated* 46,900 2,151,537
General Nutrition Companies,
Incorporated* 46,400 1,577,600
Healthsouth Corporation* 63,500 1,762,125
Medicis Pharmaceutical Corporation 11,900 608,388
Total Renal Care Holdings,
Incorporated* 37,966 1,044,065
---------
7,143,715
ELECTRICAL EQUIPMENT - 1.68%
Helix Technology Corporation 31,200 608,400
Jabil Circuit, Incorporated 25,500 1,013,625
---------
1,622,025
ELECTRONICS - 11.67%
ADC Telecommunications,
Incorporated* 59,500 2,484,125
DSC Communications Corporation* 47,900 1,149,600
Linear Technology Corporation 31,800 1,832,475
Novellus Systems, Incorporated 25,600 827,200
Tellabs, 45,600 2,411,100
Incorporated*
Uniphase Corporation* 29,700 1,228,838
Vitesse Semiconductor Corporation 34,800 1,313,700
----------
11,247,038
FINANCIAL SERVICES - 3.91%
AMRESCO, Incorporated* 32,300 977,075
A.G. Edwards, Incorporated 18,300 727,425
The Money Store, Incorporated 47,700 1,001,700
Newcourt Credit Group, Incorporated 14,000 467,250
Ocwen Finanical Corporation 23,500 597,781
---------
3,771,231
The accompanying notes are an integral part of the financial statements.
71
<PAGE> 110
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
FOOD & BEVERAGES - 1.25%
Suiza Foods Corporation* 20,200 $1,203,163
---------
HOTELS & RESTAURANTS - 1.14%
CapStar Hotel Company* 16,000 549,000
Signature Resorts, Incorporated 25,100 549,063
---------
1,098,063
LEISURE TIME - 0.79%
Callaway Golf Company 26,500 756,906
-------
MISCELLANEOUS - 1.29%
Sunrise Assisted Living, Incorporated* 28,900 1,246,312
---------
PETROLEUM SERVICES - 5.74%
Camco International, Incorporated 16,700 1,063,581
Cooper Cameron Corporation 14,200 866,200
ENSCO International, Incorporated 27,700 927,950
Global Marine, Incorporated 44,100 1,080,450
Nabors Industries, Incorporated* 15,000 471,563
Santa Fe International Corporation 27,600 1,122,975
---------
5,532,719
POLLUTION CONTROL - 5.43%
Allied Waste Industries, Incorporated* 55,700 1,298,506
American Disposal Services,
Incorporated 23,900 872,350
Superior Services, Incorporated* 24,300 701,662
USA Waste Services, Incorporated* 60,012 2,355,471
---------
5,227,989
RETAIL TRADE - 6.85%
Bed Bath & Beyond, Incorporated* 74,500 2,868,250
Borders Group, Incorporated* 17,600 551,100
Dollar Tree Stores, Incorporated* 29,850 1,235,044
Staples, Incorporated* 70,200 1,948,050
---------
6,602,444
SOFTWARE - 16.81%
BMC Software, Incorporated* 32,200 2,113,125
Check Point Software
Technologies, Ltd.* 13,600 554,200
HBO and Company 63,600 3,052,800
HNC Software, Incorporated* 24,300 1,044,900
J.D. Edwards & Company 32,700 964,650
Keane, Incorporated 25,300 1,027,812
Microchip Technology, Incorporated* 24,700 741,000
PeopleSoft, Incorporated 83,100 3,240,900
Solectron Corporation* 28,300 1,176,219
VIASOFT, Incorporated* 25,900 1,094,275
Wind River Systems, Incorporated* 29,850 1,184,672
----------
16,194,553
TELECOMMUNICATION SERVICES - 2.44%
Advanced Fibre Communications 37,300 1,086,363
P-Com, Incorporated 29,500 508,875
QUALCOMM, Incorporated 4,500 236,953
World Access, Incorporated* 21,800 520,475
---------
2,352,666
TRUCKING & FREIGHT - 1.20%
Tidewater, Incorporated 20,900 1,152,112
---------
TOTAL COMMON STOCKS
(Cost: $84,705,174) $91,470,849
----------
Principal
Amount Value
--------- -----
REPURCHASE AGREEMENT - 5.06%
$4,878,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/97 at 5.00%, to be
repurchased at $4,879,355 on
01/02/98, collateralized by
$4,940,000 U.S. Treasury Notes,
5.25% due 01/31/01 (valued at
$5,086,187, including interest) $4,878,000
---------
TOTAL INVESTMENTS (Pilgrim Baxter
Growth Trust) (Cost: $89,583,174) $96,348,849
==========
SMALL/MID CAP TRUST
Shares Value
------ -----
COMMON STOCKS - 77.48%
AEROSPACE - 1.21%
Gulfstream Aerospace Corporation* 129,500 $3,787,875
AIR TRAVEL - 3.30%
Alaska Air Group, Incorporated* 54,000 2,092,500
AMR Corporation* 35,000 4,497,500
Continental Airlines, Incorporated* 78,000 3,753,750
----------
10,343,750
APPAREL & TEXTILES - 1.22%
Nautica Enterprises, Incorporated* 46,200 1,074,150
Pillowtex Corporation 45,700 1,593,787
Polo Ralph Lauren Corporation* 47,700 1,159,706
---------
3,827,643
BANKING - 2.88%
Dime Bancorp, Incorporated 49,300 1,491,325
Sovereign Bancorp, Incorporated 78,300 1,624,725
Star Banc Corporation 33,200 1,904,850
State Street Boston Corporation 68,500 3,985,844
---------
9,006,744
BUSINESS SERVICES - 4.61%
America Online, Incorporated* 28,200 2,515,087
Cognizant Corporation 182,200 8,119,288
Paychex, Incorporated 74,900 3,791,813
----------
14,426,188
COMPUTERS & BUSINESS EQUIPMENT - 1.86%
Bay Networks, Incorporated* 93,000 2,377,312
CISCO Systems, Incorporated* 37,500 2,090,625
Citrix Systems, Incorporated* 18,000 1,368,000
---------
5,835,937
The accompanying notes are an integral part of the financial statements.
72
<PAGE> 111
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
CONTRUCTION MATERIALS - 1.64%
Masco Corporation 100,800 $5,128,200
---------
DRUGS & HEALTH CARE - 17.58%
AmeriSource Health Corporation,
Class A* 89,600 5,219,200
Bergen Brunswig Corporation, Class A 126,400 5,324,600
BioChem Pharma, Incorporated* 150,100 3,133,338
Biomatrix, Incorporated* 41,500 1,245,000
Biomet, Incorporated 130,800 3,351,750
Cardinal Health, Incorporated 72,200 5,424,025
Elan PLC, ADR* 73,000 3,736,688
General Nutrition Companies,
Incorporated* 263,800 8,969,200
Guidant Corporation 104,500 6,505,125
McKesson Corporation 33,200 3,591,825
Mentor Corporation 82,600 3,014,900
Omnicare, Incorporated 87,000 2,697,000
Quorum Health Group, Incorporated* 108,250 2,828,031
----------
55,040,682
ELECTRONICS - 4.59%
Altera Corporation* 82,700 2,739,438
CIENA Corporation* 79,300 4,847,212
Linear Technology Corporation 72,100 4,154,762
Tellabs, Incorporated* 49,700 2,627,888
----------
14,369,300
FINANCIAL SERVICES - 3.40%
Consolidated Capital Corporation* 66,700 1,354,844
INMC Mortgage Holdings, Incorporated 57,400 1,345,313
The Money Store, Incorporated 222,220 4,666,200
Paine Webber Group, Incorporated 94,500 3,266,156
----------
10,632,513
FOOD & BEVERAGES - 0.55%
International Home Foods,
Incorporated* 61,000 1,708,000
---------
HOTELS & RESTAURANTS - 0.68%
CKE Restaurants, Incorporated 6,900 290,662
Mirage Resorts, Incorporated* 81,000 1,842,750
---------
2,133,412
HOUSEHOLD APPLIANCES - 3.60%
Leggett & Platt, Incorporated 92,100 3,856,688
Sunbeam Corporation 176,000 7,414,000
----------
11,270,688
INDUSTRIAL MACHINERY - 1.47%
Tyco International, Ltd. 101,952 4,594,212
---------
INSURANCE - 2.50%
MGIC Investment Corporation 73,00 4,854,500
SunAmerica, Incorporated 69,750 2,981,812
7,836,312
LEISURE TIME - 4.04%
Carnival Corporation 54,000 2,990,250
Family Golf Centers, Incorporated* 42,000 1,317,750
International Game Technology 330,600 8,347,650
----------
12,655,650
MISCELLANEOUS - 2.10%
Cendant Corporation* 150,000 5,156,250
Fortune Brands, Incorporated 38,500 1,426,906
---------
6,583,156
PETROLEUM SERVICES - 1.62%
Diamond Offshore Drilling,
Incorporated 47,700 2,295,563
Halliburton Company 53,500 2,778,656
---------
5,074,219
POLLUTION CONTROL - 3.01%
Allied Waste Industries, Incorporated* 64,700 1,508,319
USA Waste Services, Incorporated* 201,450 7,906,912
---------
9,415,231
REAL ESTATE - 1.32%
Equity Office Properties Trust 80,400 2,537,625
Boston Properties, Incorporated 47,900 1,583,694
---------
4,121,319
RETAIL TRADE - 7.55%
Bed Bath & Beyond, Incorporated* 45,000 1,732,500
BJ's Wholesale Club, Incorporated* 40,500 1,270,687
Borders Group, Incorporated* 131,000 4,101,938
CompUSA, Incorporated* 200,300 6,209,300
CVS Corporation 45,100 2,889,219
Nordstrom, Incorporated 25,000 1,509,375
Rite Aid Corporation 29,100 1,707,806
Staples, Incorporated* 151,300 4,198,575
----------
23,619,400
SOFTWARE - 3.47%
HBO & Company 165,000 7,920,000
Sterling Commerce, Incorporated* 76,800 2,952,000
----------
10,872,000
TELECOMMUNICATION SERVICES - 0.47%
Advanced Fibre Communications* 50,000 1,456,250
---------
TIRES & RUBBER - 0.73%
Safeskin Corporation* 40,500 2,298,375
---------
TOYS, AMUSEMENTS & SPORTING GOODS - 1.56%
Mattel, Incorporated 131,400 4,894,650
---------
TRANSPORTATION - 0.51%
Coach USA, Incorporated* 48,100 1,611,350
---------
TOTAL COMMON STOCKS
(Cost $209,789,765) $242,543,056
-----------
The accompanying notes are an integral part of the financial statements.
73
<PAGE> 112
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENTS - 22.51%
$9,000,000 American Honda Finance,
6.20% due 01/05/98 $8,993,800
9,000,000 Countrywide Funding Corporation,
6.63% due 01/05/98 8,993,370
9,000,000 Merrill Lynch & Company,
Incorporated, 6.05% due 01/09/98 8,987,900
38,431,346 Navigator Securities
Lending Trust, 5.74% 38,431,346
5,069,917 Seven Seas Money Market Fund 5,069,917
-----------
70,476,333
TOTAL INVESTMENTS
(Small/Mid Cap Trust) (Cost: $280,266,098) $313,019,389
===========
INTERNATIONAL STOCK TRUST
Shares Value
------ -----
COMMON STOCKS - 82.25%
AGRICULTURAL PRODUCTS - 0.05%
Grupo Industrial Maseca, S.A. de C.V. 83,000 $85,772
------
AIR TRAVEL - 0.06%
Air New Zealand 49,000 98,159
------
APPAREL & TEXTILES - 0.11%
Gucci Group 4,352 182,240
-------
AUTO PARTS - 0.66%
Denso Corporation 59,000 1,061,882
---------
AUTOMOBILES - 0.38%
Buderus AG 250 112,010
Honda Motor Company 5,000 183,426
Rolls Royce 40,000 154,395
Volkswagen AG 285 160,327
-------
610,158
BANKING - 9.80%
ABN AMRO Holdings 41,060 799,877
Argentaria Corporation 3,830 233,043
Australia and New Zealand
Bank Group 11,000 72,696
Banca Commerciale Italiana 21,000 73,007
Banca di Roma 317,000 319,867
Banco Bilbao Vizcaya 6,120 198,041
Banco De Galicia Buenos Aires SA, ADR 4,510 116,133
Banco Frances Del Rio De La Plata, ADR 4,590 125,651
Banco Latinoamericano De
Exportaciones, S.A. 857 35,458
Banco Popular Espana 6,160 430,614
Banco Santander SA 18,145 606,223
Bayerische Hypotheken und
Wechsel Bank AG 10,445 509,781
Bayerische Vereinsbanks AG 8,078 528,520
Commonwealth Bank 19,037 218,370
Commerzbank AG 4,640 182,613
Credit Commercial de France 2,931 200,887
Credit Suisse Group 1,926 297,889
Credito Italiano 222,538 686,232
Dao Heng Bank Group 82,000 204,762
Den Danske Bank 1,995 265,829
Deutsche Bank AG 11,608 819,487
Dexia France 975 112,914
Dresdner Bank AG 3,700 170,711
Generale De Banque 1,010 439,563
Grupo Financiero Banamex Accival SA* 46,000 137,649
HSBC Holdings 5,600 138,031
Istituto Mobiliare Italiano SPA 28,000 332,391
Kredietbank NV 2,630 1,103,789
National Australia Bank, Ltd. 11,014 153,832
National Westminster 200,000 3,324,420
Nordbanken AB* 106,971 604,919
Overseas Chinese Bank 7,800 45,352
Overseas Union Bank 34,600 132,406
Royal Bank Canada 2,970 157,120
Schweizerischer Bankverein 2,284 709,647
Societe Generale 2,239 305,056
Unidanmark 1,915 140,581
Union Bank of Switzerland/
Schweizerische Bankgesellschaft 300 433,616
United Overseas Bank 29,000 160,872
Westpac Banking Corporation, Ltd. 28,000 179,132
----------
15,706,981
BROADCASTING - 2.00%
Canal Plus 1,330 247,282
Grupo Televisa SA, ADR 5,000 193,437
News Corporation 43,021 237,490
Publishing & Broadcasting, Ltd. 33,000 148,705
Sangetsu Company 3,000 30,788
TV Azteca, SA, ADR* 10,200 230,138
TV Francaise 1,570 160,430
Wolters Kluwer 15,129 1,954,127
---------
3,202,397
BUILDING MATERIALS & CONSTRUCTION - 0.20%
Bilfinger & Berger
Bauaktiengesellschaft AG 3,390 105,151
Fletcher Challenge (Building) 39,019 79,750
John Laing PLC 20,000 105,449
National House Industrial 5,000 34,273
-------
324,623
BUSINESS SERVICES - 2.25%
Adecco SA 2,090 605,745
Brambles Industries, Ltd. 3,000 59,537
Eaux (Cie Generale Des) 15,135 2,112,387
Esselte AB 2,690 54,546
Havas 715 51,441
Kokuyo Company 16,000 275,714
Toppan Printing Company 34,000 442,675
---------
3,602,045
The accompanying notes are an integral part of the financial statements.
74
<PAGE> 113
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
CHEMICALS - 1.49%
AKZO Nobel NV 970 $167,244
Bayer AG 13,611 508,441
Hoechst AG 4,197 146,981
Kuraray Company 37,000 306,043
Mitsui Chemical, Incorporated 10,000 18,381
Sekisui 58,000 294,509
Chemical
Shin Etsu Chemical Company 34,000 648,388
Teijin 82,000 171,448
UCB SA 40 132,034
---------
2,393,469
CONGLOMERATES - 2.42%
First Pacific Company 170,000 82,269
Hutchison Whampoa 128,000 802,787
Kon PTT Netherland 4,020 167,727
Orkla ASA 16,025 1,377,762
Swire Pacific 74,000 405,859
Tomkins 220,500 1,043,053
---------
3,879,457
CONSTRUCTION & MINING EQUIPMENT - 0.28%
Atlas Copco AB 15,260 454,538
-------
CONSTRUCTION MATERIALS - 0.37%
Cemex SA, ADR 28,000 253,887
Cemex SA 20,000 106,809
Heywood Williams 5,000 17,164
Hornback Baummarkt 570 16,159
Inax Corporation 10,000 29,027
Kumagai Gumi Company 8,000 4,350
Lapeyre 2,770 152,572
Nippon Hodo Company 6,000 19,300
-------
599,268
CONTAINERS & GLASS - 0.49%
Cie De St. Gobain 5,095 723,806
Compania Cervecerias Unidas SA, ADR 2,094 61,511
-------
785,317
CRUDE PETROLEUM & NATURAL GAS - 0.86%
Elf Aquitaine 4,621 537,460
Eni SPA 142,873 810,071
Rao Gazprom, ADR 1,307 31,368
---------
1,378,899
DOMESTIC OIL - 0.05%
Primagaz 870 72,711
------
DRUGS & HEALTH CARE - 9.09%
Astra AB 75,656 1,272,066
Companhia Siderurgica National, ADR 4,000 111,109
Daiichi Pharmaceutical Company 43,000 484,108
Gehe AG 13,460 673,393
Glaxo Wellcome 80,000 1,907,245
L'Oreal 455 178,039
Novartis AG 1,830 2,968,177
Rhon Klinikum AG 2,220 217,193
Roche Holdings AG 213 2,114,402
Sankyo Company 42,000 948,916
Sanofi Company 6,722 748,316
Shiseido Company 14,000 190,855
SmithKline Beecham 266,100 2,742,610
----------
14,556,429
ELECTRIC UTILITIES - 2.70%
Australia Gas and Light 41,000 285,923
Centrica* 30,000 44,101
Chilectra SA, ADR 4,004 102,272
Chilgener SA, ADR 3,242 79,429
China Light & Power Company, Ltd. 32,000 177,571
Companhia Energetica de Minas
Gerais, ADR 18,000 782,082
Empressa Nacional Electricidad SA, ADR 5,869 103,808
Endesa SA 21,724 385,713
Enersis SA, ADR 3,399 98,571
Fletcher Challenge, Ltd. (Energy) 29,000 101,538
Gas Natural SDG SA 3,906 202,543
Huaneng Power International,
Incorporated, ADR* 19,000 440,563
Iberdrola SA 27,956 367,915
VEBA AG 16,840 1,146,724
---------
4,318,753
ELECTRICAL EQUIPMENT - 3.49%
ABB AB-SEK 24,640 291,711
ABB AG-CHF 470 590,234
Alcatel Alstom 3,875 492,544
Centrais Electricas Brasileiras, ADR 16,000 397,842
Hitachi 70,000 498,583
Legrand 1,180 235,078
Makita Corporation 25,000 239,335
NEC Corporation 119,000 1,266,830
Otra NV 1,490 21,310
Samsung Electronics Company 1,423 32,238
Siemens AG 4,650 275,286
Sumitomo Electric Industries, Ltd. 90,000 1,226,928
Yuritec Corporation 4,000 24,539
---------
5,592,458
ELECTRONICS - 2.77%
Advantest 2,380 134,885
Alps Electric Company 20,000 188,405
Dainippon Screen 30,000 137,857
Electrocomponents 34,000 252,978
Fanuc 8,400 317,807
Kyocera Corporation 21,000 952,133
Murata Manufacturing Company, Ltd. 19,000 477,292
Schneider SA 10,702 581,110
TDK Corporation 15,000 1,130,428
Tokyo Electron 8,200 262,510
---------
4,435,405
FINANCIAL SERVICES - 2.38%
Cifra SA de CV, ADR* 35,081 81,388
Credicorp, Ltd. 1,770 31,860
Credit Communal Holding/Dexia 1,278 171,603
Fortis Amev NV 14,700 640,880
Internationale Nederlanden Groep NV 40,409 1,701,935
The accompanying notes are an integral part of the financial statements.
75
<PAGE> 114
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
FINANCIAL SERVICES - CONTINUED
Lend Lease Corporation 11,065 $216,348
Nomura Securities 61,000 812,897
TABCORP Holdings, Ltd. 35,000 164,241
---------
3,821,152
FOOD & BEVERAGES - 4.57%
Cadbury Schweppes 76,000 767,055
CSM NV 12,850 570,365
Danone 2,500 446,540
Diageo PLC 235,000 2,149,950
Fomento Economico Mexicano SA 28,000 223,778
Gruma SA de CV* 30,400 120,538
Gruma SA de CV, ADR* 7,046 111,871
Hillsdown Holdings 37,000 89,943
Kao Corporation 31,000 446,351
Koninklijke Numico N.V. 8,700 263,877
Nestle SA 1,228 1,839,647
Panamerican Beverages, Incorporated 9,000 293,625
---------
7,323,540
FOREST PRODUCTS - 0.06%
Sumitomo Forestry 20,000 97,879
------
GAS & PIPELINE UTILITIES - 0.23%
BG 50,764 228,461
Italgas 35,000 144,432
-------
372,893
HOMEBUILDERS - 0.34%
Daiwa House Industries 44,000 232,519
Groupe GTM 1,620 109,014
Seksui House 31,000 199,196
-------
540,729
HOTELS & RESTAURANTS - 0.18%
Ladbroke Group 65,000 281,853
-------
HOUSEHOLD APPLIANCES - 2.35%
Electrolux AB 8,610 597,502
Industrie Natuzzi SPA, ADR 5,000 103,125
Matsushita Electric Industrial
Company, Ltd. 64,000 936,203
Pioneer Electronic 22,000 338,669
Sharp Corporation 59,000 405,775
Sony Corporation 15,600 1,385,923
---------
3,767,197
HOUSEHOLD PRODUCTS - 0.94%
Kimberly-Clark de Mexico, SA de CV 47,000 230,035
Unilever 20,586 1,269,080
---------
1,499,115
INDUSTRIAL MACHINERY - 1.34%
Amada Company 34,000 126,292
Daifuku Company 4,000 19,453
GKN 7,000 143,374
Hitachi Zosen Corporation 60,000 96,040
Ishihara Sangyo 8,000 8,884
Komatsu 42,000 210,692
Komori Corporation 14,000 208,011
Mannesmann AG 458 231,425
Mitsubishi Heavy Industries 199,000 829,103
T & N PLC 66,000 276,433
---------
2,149,707
INSURANCE - 2.09%
Abbey National 54,000 972,097
Allianz AG Holding 3,130 810,795
Assicurazioni Generali 18,000 442,114
Assurances Generales de France 3,130 165,848
AXA-UAP 5,631 435,716
Mediolanum 16,074 302,580
Tokio Marine & Fire Insurance Company 19,000 215,363
---------
3,344,513
INTERNATIONAL OIL - 4.27%
The British Petroleum Company PLC 43,000 568,827
Lukoil Holding, ADR 550 50,504
Royal Dutch Petroleum Company 65,568 3,599,102
Saga Petroleum 2,590 39,275
Shell Transport & Trading 281,500 1,974,293
YPF Sociedad Anonima, ADR 18,014 615,854
---------
6,847,855
INVESTMENT COMPANIES - 0.01%
Brazil Fund 1,000 21,000
------
LEISURE TIME - 1.15%
Accor 840 156,179
Berjaya Sports 73,000 186,746
Compass Group 33,000 405,977
Pathe SA 880 170,780
Rank Group PLC 80,500 448,230
Sodexho Alliance SA 822 440,194
Sodexho Alliance SA-New 58 30,308
---------
1,838,414
LIQUOR - 0.24%
Fosters Brewing Group 76,000 144,636
Grupo Modelo SA, Series C 18,000 151,218
LVMH Moet Hennessy 558 92,621
-------
388,475
METAL & METAL PRODUCTS - 0.24%
Caradon PLC 125,300 364,275
Granges AB 1,695 26,578
-------
390,853
MINING - 0.23%
Tanjong 101,000 167,489
Usinas Siderurgicas de Minas, ADR 33,000 195,155
-------
362,644
NEWSPAPERS - 0.60%
United News & Media PLC 85,000 967,515
-------
NON-FERROUS METALS - 0.87%
Alcan Aluminum, Ltd. 7,500 206,781
Rio Tinto 52,150 642,851
Sandvik AB, A Shares 1,440 40,988
Sandvik AB, B Shares 14,020 400,829
WMC, Ltd. 27,500 95,889
---------
1,387,338
The accompanying notes are an integral part of the financial statements.
76
<PAGE> 115
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
OFFICE FURNISHINGS & SUPPLIES - 0.01%
Scribona AB 1,130 $12,595
------
PAPER - 0.24%
Guilbert SA 1,350 192,457
Mitsubishi Paper 15,000 21,023
David S. Smith Holdings 54,000 176,060
-------
389,540
PETROLEUM SERVICES - 2.15%
Broken Hill Proprietary Company 30,124 279,775
Norsk Hydro AS 22,823 1,110,898
Perez Compac SA 34,090 243,449
Repsol SA 5,949 253,813
TOTAL SA, B Shares 12,529 1,363,545
Woodside Petroleum, Ltd. 27,000 190,402
---------
3,441,882
PHOTOGRAPHY - 0.99%
Canon, Incorporated 68,000 1,583,212
---------
PUBLISHING - 2.60%
Elsevier NV 106,722 1,726,374
John Fairfax Holdings 65,000 135,564
Reed International PLC 208,300 1,984,370
Singapore Press Holdings 25,000 312,963
---------
4,159,271
RAILROADS & EQUIPMENT - 0.33%
East Japan Railway 117 527,786
-------
REAL ESTATE - 1.70%
Cheung Kong Holdings 19,000 124,435
City Developments 9,500 43,963
Hong Kong Land Holdings 194,000 372,480
Mitsui Fudosan Company 95,000 916,750
New World Development Company 183,000 632,907
Singapore Land 65,000 142,688
Sun Hung Kai Properties 19,000 132,404
Wharf Holdings 163,580 358,867
---------
2,724,494
RETAIL GROCERY - 1.13%
ASDA Group 170,000 500,120
Seven Eleven Japan Company, Ltd. 5,000 353,833
Tesco 81,500 672,050
Uny Company, Ltd, 16,000 219,346
Companhia Brasileira de Destribuicao
Grupo Pao de Acucar, GDR 4,000 73,117
---------
1,818,466
RETAIL TRADE - 4.79%
Argos 56,000 505,430
Carrefour 492 256,689
Centros Comerciales Pryca 179 2,667
Citizen Watch Company 24,000 160,833
Hennes & Mauritz AB 18,910 833,575
Ito-Yokado Company 16,000 814,889
Kingfisher 117,000 1,633,466
Koninklijke Ahold NV 7,931 206,914
La Rinascente SPA 7,000 52,233
Lojas Americanas SA, ADR 2,000 9,319
Marui Company, Ltd. 41,000 637,436
Mitsubishi Corporation 42,000 331,316
Pinault Printemps Redoute 2,311 1,232,968
Safeway 99,000 557,744
Santa Isabel SA, ADR 1,662 29,085
Sumitomo Corporation 72,000 402,543
---------
7,667,107
SOFTWARE - 0.65%
Baan Company - NLG 6,302 206,373
Baan Company* 5,980 197,340
SAP AG 2,080 631,880
---------
1,035,593
STEEL - 0.27%
Nippon Steel Corporation 256,000 378,402
Tokyo Steel Manufacturing 18,200 61,471
-------
439,873
TELECOMMUNICATION SERVICES - 0.80%
Cable & Wireless 101,500 891,919
Mahanagar Telephone Nigam, Ltd., GDR* 13,000 201,630
Telstra Corporation, Ltd. 86,000 181,603
---------
1,275,152
TELEPHONE - 4.60%
Compania Anonima Nacional
Telefonos de Venezuela, ADR 4,001 166,542
DDI Corporation 66 174,389
Deutsche Telekom AG 12,847 241,736
Nippon Telegraph & Telephone
Corporation 51 437,466
Telecomunicacoes Brasileiras, ADR 18,000 2,095,875
Teledanmark 305 18,918
Telecom Corporation of New Zealand 39,000 189,089
Telecom Italia Mobile SPA - RNC 44,800 127,385
Telecom Italia Mobile SPA 249,162 1,150,033
Telecom Italia SPA* 164,177 1,048,728
Telefonica de Argentina SA, ADR 8,890 331,152
Telefonica de Espana 20,037 572,110
Telefonica del Peru SA, ADR 1,520 35,435
Telefonos de Mexico SA, ADR 14,000 784,875
---------
7,373,733
TOYS, AMUSEMENTS & SPORTING GOODS - 0.34%
Polygram 9,555 457,098
SEGA Enterprises 5,200 93,988
-------
551,086
TRUCKING & FREIGHT - 0.02%
Bergesen ASA 1,640 38,636
------
TOTAL COMMON STOCKS
(Cost: $132,970,499) $131,782,059
-----------
The accompanying notes are an integral part of the financial statements.
77
<PAGE> 116
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
PREFERRED STOCKS - 0.57%
BROADCASTING - 0.06%
News Corporation 18,603 $92,073
------
CONSTRUCTION MATERIALS - 0.05%
Hornbach Holdings AG 1,090 75,436
------
DRUGS & HEALTH CARE - 0.08%
Fresenius AG 740 136,157
-------
ELECTRONICS - 0.21%
Nokia (AB) OY 4,829 342,844
-------
LEISURE TIME - 0.05%
Sydney Harbour Casino 81,600 77,381
------
RETAIL TRADE - 0.01%
Fielmann AG 930 20,679
------
SOFTWARE - 0.11%
SAP AG 525 171,746
-------
TOTAL PREFERRED STOCKS
(Cost: $928,271) $916,316
-------
WARRANTS - 0.14%*
BANKING - 0.09%
Dresdner Bank AG (Expiration date
04/30/02; strike price DEM 51.3) 8,295 147,553
-------
INSURANCE - 0.05%
Internationale Nederlanden Groep NV
(Expiration date 03/15/01;
strike price NLG 27.20) 7,179 75,201
------
TOTAL WARRANTS (Cost: $214,974) $222,754
-------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 9.70%
$15,537,088 Navigator Securities
Lending Trust, 5.74% $15,537,088
----------
REPURCHASE AGREEMENT - 7.34%
$11,761,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.00%, to be
repurchased at $11,764,267 on
01/02/98, collateralized by
$11,995,000 U.S. Treasury Notes,
4.75% due 10/31/98 (valued at
$12,093,313, including interest) $11,761,000
----------
TOTAL INVESTMENTS (International
Stock Trust) (Cost: $161,411,832) $160,219,217
===========
WORLDWIDE GROWTH TRUST
Shares Value
------ -----
COMMON STOCKS - 58.77%
AIR TRAVEL - 0.89%
Deutsche Lufthansa AG 11,200 $214,792
SAS Danmark A/S 3,300 48,162
-------
262,954
APPAREL & TEXTILES - 2.88%
Adidas AG 1,250 164,401
Warnaco Group, Incorporated 11,600 363,950
Wolverine World Wide, Incorporated 14,275 322,972
-------
851,323
AUTO PARTS - 0.72%
Autoliv 6,481 212,253
-------
BANKING - 4.27%
Banco de A. Edwards, ADR 1,250 21,250
Banco Latinoamericano de
Exportaciones SA 2,050 84,819
Commerzbank AG 3,000 118,069
Credito Italiano 220,575 680,179
Merita PLC 66,000 360,818
---------
1,265,135
BROADCASTING - 2.58%
Carlton Communications 18,500 142,815
Jacor Communications, Incorporated* 6,825 362,578
Pearson PLC 19,875 258,220
-------
763,613
BUILDING MATERIALS & CONSTRUCTION - 0.46%
Brisa-Auto Estradas de Portugal, SA* 4,100 136,355
-------
BUSINESS SERVICES - 2.86%
Kobenhavn Lufthave 250 30,101
Konami Company 5,000 122,923
Manpower, Incorporated 11,800 415,950
Nokia Corporation, ADR 650 45,500
Polygram 4,875 232,476
-------
846,950
CHEMICALS - 2.38%
Air Liquide 1,200 187,821
Imperial Chemical Industries PLC, ADR 4,900 318,194
Morton International Industries,
Incorporated 5,800 199,375
-------
705,390
COMPUTERS & BUSINESS EQUIPMENT - 0.96%
Oce-Van Der Grinten 925 100,819
Radisys Corporation* 3,324 123,856
Sandisk Corporation* 2,925 59,414
-------
284,089
CRUDE PETROLEUM & NATURAL GAS - 2.48%
Apache Corporation 10,225 358,514
Gulf Canada Resources, Ltd.* 53,650 375,550
-------
734,064
The accompanying notes are an integral part of the financial statements.
78
<PAGE> 117
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
DRUGS & HEALTH CARE - 5.51%
Glaxo Wellcome PLC, ADR 7,475 $357,866
Novartis AG 280 454,147
Quorum Health Group,
Incorporated* 7,612 198,863
Roche Holdings AG 44 436,778
Schwarz Pharmaceuticals AG 1,950 131,160
Sulzer Medica, Incorporated* 225 53,894
---------
1,632,708
ELECTRICAL EQUIPMENT - 2.10%
Emerson Electric
Company 5,700 321,694
Philips Electronics NV, ADR 4,975 300,987
-------
622,681
ELECTRONICS - 0.17%
Beijing Datang Power* 107,400 49,202
------
FINANCIAL SERVICES - 0.78%
Internationale Nederlanded Groep NV 5,500 231,647
FOOD & BEVERAGES - 1.70%
Danone 1,000 178,616
J.D. Wetherspoon, PLC 11,750 64,267
Pepsico, Incorporated 7,150 260,528
-------
503,411
GAS & PIPELINE UTILITIES - 1.18%
Sonat, Incorporated 7,625 348,844
-------
HOTELS & RESTAURANTS - 3.58%
Four Seasons Hotels, Incorporated 10,150 320,994
Ladbroke Group 142,575 618,234
Tricon Global Restaurants,
Incorporated* 4,165 121,045
---------
HOUSEHOLD APPLIANCES - 2.43% 1,060,273
Industrie Natuzzi SPA, ADR 3,000 61,875
Sony Corporation 7,400 657,425
-------
719,300
HOUSEHOLD PRODUCTS - 1.02%
Benckiser NV* 7,275 301,025
-------
INDUSTRIAL MACHINERY - 0.38%
VA Technologies AG 750 113,882
-------
INSURANCE - 1.26%
Royal & Sun Alliance Insurance
Group PLC 23,255 233,842
WPP Group 31,000 137,986
-------
371,828
INTERNATIONAL OIL - 1.54%
YPF Sociedad Anonima, ADR 13,375 457,258
-------
LEISURE TIME - 1.77%
Compass Group 28,500 350,616
Sports Authority, Incorporated* 8,400 123,900
Village Roadshow 20,000 50,706
-------
525,222
LIQUOR - 0.48%
Quilmes Industrial Quisna Societe, ADR 10,450 143,034
MINING - 1.31%
Potash Corporation of Saskatchewan,
Incorporated 4,675 388,025
-------
NEWSPAPERS - 1.90%
Ver Ned Uitgevers 19,975 563,495
-------
PAPER - 0.52%
Guilbert SA 250 35,640
Metsa-Serla OY 15,000 116,952
-------
152,592
PETROLEUM SERVICES - 2.41%
Aker Maritime ASA 5,425 115,319
Petroleum Geological Services AS, ADR* 2,350 152,163
Total SA, ADR 8,025 445,387
-------
712,869
RETAIL TRADE - 2.12%
Dixons Group 33,675 337,951
Next PLC 25,475 290,790
-------
628,741
SOFTWARE - 1.91%
Baan Company* 5,400 178,200
NTT Data Corporation 7 376,886
Square Company, Ltd. 400 11,090
-------
566,176
TELECOMMUNICATION SERVICES - 0.66%
France Telecom 5,400 195,866
-------
TELEPHONE - 3.55%
Compania Nacional Telephone
de Venezuela, ADR 7,750 322,594
Telecomunicacoes Brasileiras, ADR 820 95,479
Telefonica de Argentina SA, ADR 8,075 300,794
World Communications, Incorporated* 11,025 333,506
---------
1,052,373
TOTAL COMMON STOCKS
(Cost: $16,779,443) $17,402,578
----------
PREFERRED STOCKS - 5.42%
AUTOMOBILES - 0.69%
Volkswagen AG 475 203,841
-------
BROADCASTING - 0.65%
ProSieben Media AG 4,100 191,445
-------
FINANCIAL SERVICES - 1.79%
Marschollek Lautenschlaeger und
Partner AG 2,100 531,143
-------
SOFTWARE - 2.29%
SAP AG 2,075 678,806
-------
TOTAL PREFERRED STOCKS
(Cost: $1,456,523) $1,605,235
---------
The accompanying notes are an integral part of the financial statements.
79
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 16.99%
$5,032,012 Navigator Securities
Lending Trust, 5.74% $5,032,012
---------
REPURCHASE AGREEMENT - 18.81%
$5,570,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.00%, to be
repurchased at $5,571,547 on
01/02/98, collateralized by
$4,320,000 U.S. Treasury Bonds,
8.75% due 05/15/17 (valued at
$5,735,693, including interest) $5,570,000
---------
TOTAL INVESTMENTS (Worldwide
Growth Trust) (Cost: $28,837,978) $29,609,825
==========
GLOBAL EQUITY TRUST
Shares Value
------ -----
COMMON STOCKS - 92.92%
ALUMINUM - 0.86%
Aluminum Company of America 111,700 $7,860,888
---------
AUTO PARTS - 1.38%
Borg Warner Automotive, Incorporated 243,550 12,664,600
AUTOMOBILES - 1.68%
Volkswagen AG 27,500 15,470,135
----------
BANKING - 6.16%
ABN AMRO Holdings 617,973 12,038,534
Bank of Ireland 644,800 9,902,540
First Chicago Corporation 146,000 12,191,000
Mellon Bank Corporation 222,400 13,483,000
Nordbanken AB 1,587,800 8,978,982
----------
56,594,056
BROADCASTING - 0.71%
Mediaset SPA 1,323,479 6,501,432
---------
BUSINESS SERVICES - 1.44%
Aggreko PLC 662,222 1,696,811
Danka Business Systems, ADR 298,700 4,760,531
Intelidata Technologies Corporation* 963,600 1,776,638
NCR Corporation* 180,193 5,011,618
----------
13,245,598
CHEMICALS - 4.19%
Akzo Nobel NV, ADS 54,300 9,362,207
BASF AG 217,700 7,714,709
Bayer AG 360,700 13,473,993
The B.F. Goodrich Company 191,970 7,954,757
----------
38,505,666
COMPUTERS & BUSINESS EQUIPMENT - 0.67%
Data General Corporation* 353,000 6,155,438
---------
CONGLOMERATES - 1.75%
CSR, Ltd. 1,939,000 6,571,463
----------
16,064,375
CONSTRUCTION MATERIALS - 0.98%
Cimpor-Cimentos de Portugal SA 59,050 1,547,716
---------
8,971,204
CONTAINERS & GLASS - 0.39%
Toyo Seikan Kaisha 254,100 3,619,713
---------
CRUDE PETROLEUM & NATURAL GAS - 1.57%
Elf Aquitaine 84,200 9,793,138
United Meridian Corporation* 165,650 4,658,906
----------
14,452,044
DOMESTIC OIL - 0.98%
Penzoil 27,200 1,817,300
Tenneco, Incorporated 181,820 7,181,890
---------
8,999,190
DRUGS AND HEALTH CARE - 4.28%
Fujisawa Pharmaceutical Company, Ltd. 485,000 4,234,510
Pharmacia & Upjohn, Incorporated 475,700 17,422,512
Reckitt & Coleman 1,131,767 17,752,756
----------
39,409,778
ELECTRIC UTILITIES - 3.11%
Iberdrola SA 752,900 9,908,529
Southern Electric PLC 646,153 5,402,049
VEBA AG 194,600 13,251,341
----------
28,561,919
ELECTRICAL EQUIPMENT - 1.29%
ABB AG 2,390 3,001,403
General Signal Corporation 94,500 3,986,719
Hitachi, Ltd. 680,000 4,843,379
----------
11,831,501
ELECTRONICS - 4.56%
Ascom Holding AG* 3,180 4,091,432
GenRad, Incorporated* 479,700 14,480,944
Premier Farnell PLC, ADS 930,200 6,691,999
Racal Electronics 1,002,442 4,396,184
SGS Thomson Microelectronics,
Incorporated* 68,900 4,264,393
TDK Corporation 106,000 7,988,358
----------
41,913,310
FINANCIAL SERVICES - 6.08%
Enhance Financial Services Group,
Incorporated 126,300 7,514,850
Internationale Nederlanden Groep 343,601 14,471,692
PennCorp Financial Group,
Incorporated 493,350 17,606,428
UST Corporation 585,800 16,255,950
----------
55,848,920
FOOD & BEVERAGES - 5.75%
Bass, ADS 494,500 7,692,013
Danone 22,600 4,036,720
The accompanying notes are an integral part of the financial statements.
80
<PAGE> 119
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
FOOD & BEVERAGES - CONTINUED
IBP, Incorporated 171,550 $3,591,828
Kao Corporation 679,000 9,776,518
Lion Nathan, Ltd. 3,023,650 6,776,933
Nestle SA 8,900 13,332,946
Salveson Christian 662,222 1,065,946
Tate & Lyle PLC 794,523 6,538,070
----------
52,810,974
HOUSEHOLD APPLIANCES - 1.67%
Matsushita Electric Industrial
Company, Ltd. 404,000 5,909,780
Philips Electronics 156,700 9,397,440
----------
15,307,220
HOUSEHOLD PRODUCTS - 2.83%
Benckiser* 99,900 4,133,657
Unilever PLC 2,544,400 21,886,350
----------
26,020,007
INDUSTRIAL MACHINERY - 1.76%
Bobst AG 2,500 3,678,483
Schindler Holding AG 3,400 3,541,473
Sumitomo Rubber Industries 450,000 1,898,981
Tecumseh Products Company 133,700 6,517,875
United Dominion Industries, Ltd. 19,400 491,063
----------
16,127,875
INSURANCE - 8.15%
Irish Life 3,969,176 22,766,779
MBIA, Incorporated 230,600 15,406,963
Royal & Sun Alliance Insurance
Group PLC 1,017,500 10,244,724
SCOR 94,750 4,530,871
Sumitomo Marine & Fire 836,000 4,417,860
Terra Nova Bermuda Holdings, Ltd. 362,300 9,510,375
WPP Group PLC 1,794,000 7,985,408
----------
74,862,980
INVESTMENT COMPANIES - 0.01%
India Gateway Fund* 6,557 63,537
------
LEISURE TIME - 0.38%
Ascent Entertainment Group* 338,664 3,513,636
---------
MINING - 1.62%
English China Clay 596,160 2,624,237
Potash Corporation of
Saskatchewan, Incorporated 147,485 12,286,546
----------
14,910,783
PAPER - 1.46%
Boise Cascade Corporation 306,500 9,271,625
Clondalkin Group 513,400 4,131,972
----------
13,403,597
PETROLEUM SERVICES - 1.14%
Burma Castrol PLC 369,200 6,440,085
Noble Drilling Corporation* 132,850 4,068,531
----------
10,508,616
PHOTOGRAPHY - 1.80%
Fuji Photo Film Company 433,000 16,581,143
----------
POLLUTION CONTROL - 0.69%
Browning-Ferris Industries,
Incorporated 170,183 6,296,771
---------
PUBLISHING - 3.03%
Houghton Mifflin Company 724,950 27,819,956
----------
RETAIL GROCERY - 1.24%
Albertsons, Incorporated 240,100 11,374,738
----------
RETAIL TRADE - 5.82%
BJ's Wholesale Club, Incorporated* 576,200 18,078,275
Coles Myer, Ltd. 711,307 3,416,689
Delhaize-Le Lion SA 118,900 6,033,089
G.I.B. Holdings, Ltd. 79,300 3,852,527
HomeBase, Incorporated* 576,200 4,537,575
Karstadt AG 38,300 13,074,310
Toys R Us, Incorporated* 144,200 4,533,288
----------
53,525,753
STEEL - 0.51%
Lukens, Incorporated 113,000 3,227,563
NKK Corporation 1,850,000 1,473,539
---------
4,701,102
TELECOMMUNICATION SERVICES - 2.43%
Comsat Corporation 692,850 16,801,612
France Telecom, ADS* 65,900 2,390,292
Telstra Corporation, Ltd. 1,471,800 3,107,955
----------
22,299,859
TELEPHONE - 5.83%
American Telephone & Telegraph
Corporation 207,850 12,730,813
Nippon Telegraph & Telephone
Corporation 1,047 8,980,929
Telecom Italia SPA 3,650,000 16,093,838
Telefonica de Espana SA 353,300 10,087,660
Telus Corporation 259,509 5,720,257
----------
53,613,497
TOBACCO - 3.87%
BAT Industries PLC 491,941 4,486,089
Imperial Tobacco 500,700 3,149,791
Philip Morris Companies,
Incorporated 617,100 27,962,344
----------
35,598,224
TRUCKING & FREIGHT - 0.86%
Peninsular & Oriental Steam
Navigation Company 659,099 7,906,273
---------
TOTAL COMMON STOCKS
(Cost: $716,965,632) $853,916,308
-----------
The accompanying notes are an integral part of the financial statements.
81
<PAGE> 120
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 5.81%
$53,383,326 Navigator Securities
Lending Trust, 5.74% $53,383,326
----------
REPURCHASE AGREEMENT - 1.27%
$11,651,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.00%, to be
repurchased at $11,654,236 on
01/02/98 collateralized by
$9,400,000 U.S. Treasury Bonds,
8.125% due 05/15/21 (valued at
$11,986,697, including interest) $11,651,000
----------
TOTAL INVESTMENTS
(Global Equity Trust) (Cost: $781,999,958) $918,950,634
===========
SMALL COMPANY VALUE TRUST
Shares Value
------ -----
COMMON STOCKS - 95.38%
AEROSPACE - 0.49%
Applied Signal Technology, Incorporated 9,500 $130,625
Engineered Support Systems,
Incorporated 4,100 75,338
Primex Technologies, Incorporated 4,000 135,000
-------
340,963
AGRICULTURAL MACHINERY - 0.23%
Gehl Company 7,500 157,500
-------
AIR TRAVEL - 0.57%
Alaska Air Group* 10,200 395,250
-------
APPAREL & TEXTILES - 3.09%
Concord Fabrics, Incorporated 3,800 34,675
Dixie Group, Incorporated 13,300 151,288
Goody's Family Clothing, Incorporated 5,000 135,937
Gulford Mills, Incorporated 2,000 54,750
Haggar Corporation 8,900 140,175
Kellwood Company 13,000 390,000
Oshkosh B'Gosh, Incorporated 7,300 240,900
Quaker Fabric Corporation 4,200 82,425
Russell Corporation 18,900 502,031
Springs Industries, Incorporated 8,000 416,000
---------
2,148,181
AUTO PARTS - 2.85%
Borg-Warner Automotive, Incorporated 10,300 535,600
Excel Industries, Incorporated 7,600 137,275
Federal-Mogul Corporation 21,400 866,700
Insurance Auto Auctions, Incorporated 10,400 119,600
Raytech Corporation 5,000 26,875
Republic Automotive Parts, Incorporated 2,600 38,025
Safety Components International,
Incorporated* 4,200 50,400
Standard Products Company 8,200 210,125
---------
1,984,600
AUTO SERVICES - 0.63%
Budget Group, Incorporated* 12,600 435,488
-------
BANKING - 6.04%
Abington Bancorp, Incorporated 1,600 33,600
Ambanc Holding Company, Incorporated 5,400 101,250
Banknorth Group, Incorporated 800 51,400
Bay View Capital Corporation 4,900 177,625
BCB Financial Services Corporation 1,000 24,750
Carver Bancorp, Incorporated 1,200 19,500
Central Co-Operative Bank 1,600 45,600
Columbia Banking System, Incorporated 1,200 32,400
Commercial Bank of New York 800 18,400
Commercial Federal Corporation 18,300 650,794
Corus Bankshares, Incorporated 4,900 193,856
CVB Financial Corporation 2,500 92,812
Financial Bancorp, Incorporated 1,600 38,600
First Oak Brook Bancshares,
Incorporated 3,100 148,800
First Palm Beach Bancorp, Incorporated 4,100 176,813
First Republic Bank 7,800 249,113
FirstBank Puerto Rico 5,800 197,562
MAF Bancorp, Incorporated 10,100 357,288
North City Bancorp 525 8,400
OnBancorp, Incorporated 6,000 423,000
Pacific Bank, N.A. 2,700 118,800
People's Bancshares, Incorporated 3,700 84,175
PONCEBANK 5,700 107,587
Poughkeepsie Financial Company 9,300 108,112
Sandwich Bancorp, Incorporated 1,800 79,200
Sierrawest Bancorp 2,900 97,875
Silicon Valley Bancshares 5,900 331,875
Skaneateles Bancorp, Incorporated 1,200 24,450
Sterling Bancorp 1,500 36,000
Sterling Financial Corporation 2,200 47,850
Sumitomo Bank of California 2,200 120,175
---------
4,197,662
BROADCASTING - 0.29%
Andersen Group, Incorporated 2,600 13,325
United Video Satellite Group,
Incorporated* 6,500 186,875
-------
200,200
BUILDING MATERIALS & CONSTRUCTION - 0.81%
Abrams Industries, Incorporated* 700 5,162
American Buildings Company 4,800 121,200
Hughes Supply, Incorporated 8,600 300,463
NCI Building Systems, Incorporated 3,900 138,450
-------
565,275
BUSINESS SERVICES - 9.87%
ACNielson Corporation* 35,800 872,625
American Business Information,
Incorporated 4,800 49,200
American Business Information,
Incorporated, Class A 4,800 50,400
The accompanying notes are an integral part of the financial statements.
82
<PAGE> 121
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
BUSINESS SERVICES - CONTINUED
Analysis & Technology, Incorporated 1,400 $39,375
Analysts International Corporation 12,650 436,425
Automobile Protection Corporation* 14,700 98,306
Bowne & Company, Incorporated 11,900 474,512
Complete Management, Incorporated* 7,800 109,200
Grey Advertising, Incorporated 700 229,600
Harbinger Corporation* 7,100 199,688
Information Resources, Incorporated 18,000 240,750
Interim Services, Incorporated 27,100 701,213
Kelly Services, Incorporated 10,500 315,000
LCS Industries, Incorporated 5,900 85,550
M/A/R/C, Incorporated 2,900 52,200
Merrill Corporation 6,600 153,450
National Technical Systems, Incorporated 8,400 54,075
Personal Group of America, Incorporated 7,900 260,700
REFAC Technology Development
Corporation 4,800 51,300
Regis Corporation 4,100 103,012
Snyder Communications, Incorporated* 10,500 383,250
Source Services Corporation* 1,500 32,437
Stone & Webster, Incorporated 4,359 204,328
Systems & Computer Technology
Corporation* 9,400 466,475
Thomas Group, Incorporated* 8,100 101,250
TMP Worldwide, Incorporated* 5,800 133,400
Trio-Tech International 2,600 13,000
Yahoo, Incorporated* 13,700 948,725
---------
6,859,446
CHEMICALS - 1.46%
Carbide/Graphite Group, Incorporated 4,200 141,750
Dexter Corporation 5,700 246,169
Farrel Corporation 5,300 25,506
Ferro Corporation 17,300 420,606
Terra Industries, Incorporated 14,000 182,875
---------
1,016,906
COMPUTERS & BUSINESS EQUIPMENT - 3.10%
Adage, Incorporated 3,200 24,200
AMX Corporation 7,000 40,250
BancTec, Incorporated 9,800 262,763
Dataram Corporation 3,500 31,937
Equinox Systems, Incorporated 4,600 78,200
General Binding Corporation 1,500 45,000
Gerber Scientific, Incorporated 800 15,900
Gradco Systems, Incorporated 5,700 42,037
Intergraph Corporation 25,900 259,000
Metromail Corporation* 10,800 193,050
Microage, Incorporated* 8,400 126,525
Microsemi Corporation 9,400 165,088
National Computer Systems,
Incorporated 7,800 274,950
Printronix Corporation* 5,900 99,931
Programmers Paradise, Incorporated 6,900 64,688
Rainbow Technologies, Incorporated 7,800 226,200
Transnet Corporation 4,900 10,412
Trident Microsystems, Incorporated* 12,000 108,750
Wang Laboratories, Incorporated* 4,000 88,500
---------
2,157,381
CONGLOMERATES - 0.42%
Cooper Life Sciences, Incorporated 2,500 78,750
The First Years, Incorporated 1,700 39,100
Griffon Corporation* 12,100 176,963
-------
294,813
CONSTRUCTION & MINING EQUIPMENT - 0.64%
Astec Industries, Incorporated* 1,700 28,475
CDI Corporation 6,800 311,100
Gencor Industries, Incorporated 5,400 105,300
-------
444,875
CONSTRUCTION MATERIALS - 1.84%
Florida Rock Industries, Incorporated 7,400 168,350
Medusa Corporation 5,000 209,063
Patrick Industries, Incorporated 5,400 79,650
Republic Group, Incorporated 1,000 16,375
Texas Industries, Incorporated 13,300 598,500
TJ International, Incorporated 8,500 210,375
---------
1,282,313
CONTAINERS & GLASS - 0.82%
Ball Corporation 13,700 483,781
Continental Can Company,
Incorporated 3,500 87,938
-------
571,719
COSMETICS & TOILETRIES - 0.31%
Block Drug, Incorporated 5,047 218,283
-------
CRUDE PETROLEUM & NATURAL GAS - 0.62%
American Resources of Delaware,
Incorporated 10,500 27,562
Evergreen Resources, Incorporated 9,000 139,500
National-Oilwell, Incorporated* 7,800 266,663
-------
433,725
DOMESTIC OIL - 0.75%
Devon Energy Corporation 9,300 358,050
Houston Exploration Company* 8,300 152,513
Maynard Oil Company 1,300 13,325
-------
523,888
DRUGS & HEALTH CARE - 5.05%
Acuson Corporation 9,200 152,375
ALPHARMA, Incorporated 12,400 269,700
ATL Ultrasound 7,600 349,600
Bio Reference Laboratories,
Incorporated 7,000 9,844
Chattem, Incorporated* 5,100 75,225
Chemed Corporation 5,000 207,187
D & K Wholesale Drug, Incorporated 4,000 33,500
Datascope Corporation* 8,900 230,288
Gamma Biologicals, Incorporated 4,600 18,975
Hanger Orthopedic Group* 16,700 215,013
Herbalife International,
Incorporated, Class A 3,233 67,893
The accompanying notes are an integral part of the financial statements.
83
<PAGE> 122
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
DRUGS & HEALTH CARE - CONTINUED
Herbalife International,
Incorporated, Class B 6,466 $139,019
Marquette Medical Systems, Incorporated* 9,800 260,925
Minntech Corporation 4,900 60,638
Perrigo Company* 100 1,337
Polymedica Corporation 6,000 58,500
Prime Hospitality Corporation* 2,500 50,937
Quest Diagnostics, Incorporated* 18,100 305,438
Ramsay Health Care, Incorporated 3,100 9,300
Respironics, Incorporated* 10,500 234,937
Sheridan Healthcare, Incorporated 8,300 124,500
Summit Care Corporation 1,300 21,287
Sun Healthcare Group, Incorporated* 24,900 482,438
Syncor International Corporation 8,300 133,837
---------
3,512,693
ELECTRIC UTILITIES - 0.37%
Public Services Company of
New Mexico 10,800 255,825
-------
ELECTRICAL EQUIPMENT - 2.35%
Anixter International, Incorporated 8,100 133,650
Audiovox Corporation* 5,000 34,375
Bel Fuse, Incorporated* 6,300 120,487
Belden, Incorporated 700 24,675
C & D Technologies 2,300 110,975
Cohu, Incorporated 6,100 186,813
Comdial Corporation* 10,400 96,200
CMC Industries, Incorporated 8,600 50,525
ESCO Electronics Corporation 10,700 180,562
Fluke Corporation 10,000 260,625
Furon Company 6,000 125,250
IFR Systems, Incorporated 5,250 81,375
Kewaunee Scientific Corporation 2,500 25,000
PSC, Incorporated* 8,900 117,369
Twin Disc, Incorporated 2,700 88,425
---------
1,636,306
ELECTRONICS - 5.08%
Alpha Industries, Incorporated 6,100 98,362
Asyst Technologies, Incorporated* 5,000 108,750
Cobra Electronics Corporation 8,100 51,131
Cognitronics Corporation* 4,600 88,262
CTS Corporation 6,300 201,206
Dallas Semiconductor Corporation 2,300 93,725
EG & G, Incorporated 27,900 580,669
Frequency Electronics, Incorporated 4,200 67,200
Genicom Corporation* 13,400 154,100
Hadco Corporation* 5,500 248,875
Herley Industries, Incorporated 3,500 42,219
IEC Electronics Corporation 8,000 109,000
Integrated Circuit Systems,
Incorporated 10,900 310,650
Network Equipment Tecnhnologies,
Incorporated* 15,700 229,613
Reliability, Incorporated 5,800 79,750
Splash Technology Holdings,
Incorporated 5,700 128,250
Tech-Sym Corporation 4,400 111,925
TransPro, Incorporated 5,100 45,900
Uniphase Corporation* 18,100 748,888
Vicon Industries, Incorporated* 400 2,725
Xeta Corporation 1,800 31,275
---------
3,532,475
FINANCIAL SERVICES - 6.37%
Advest Group, Incorporated 2,000 49,375
Albank Financial Corporation 7,300 375,494
AmeriCredit Corporation* 500 13,844
Atalanta/Sosnoff Capital Corporation 2,000 24,000
JW Charles Financial Services,
Incorporated 4,300 49,988
D & N Savings Financial Corporation 550 14,575
Eaton Vance Corporation 1,000 37,750
EVEREN Capital Corporation 4,500 213,750
Hallmark Capital Corporation* 400 6,800
Hawthorne Financial Corporation 3,700 74,462
Jefferies Group, Incorporated 9,600 393,000
JSB Financial, Incorporated 1,900 95,119
National R.V. Holdings, Incorporated* 6,200 203,825
North Central Bancshares,
Incorporated 2,500 49,687
Pacific Crest Capital, Incorporated 2,000 36,500
PennFed Financial Services,
Incorporated 4,600 158,700
Peoples Heritage Financial Group,
Incorporated 17,300 795,800
Raymond James Financial,
Incorporated 16,500 654,844
Reliance Bancorp, Incorporated 7,000 256,375
Southwest Securities Group,
Incorporated 3,500 90,125
Standard Management Corporation 4,600 30,187
Stifel Financial Corporation 5,300 89,437
TF Financial Corporation 369 11,070
Thornburg Mortgage Asset
Corporation 11,600 191,400
UST Corporation 14,300 396,825
Value Line, Incorporated 2,000 79,000
WFS Financial, Incorporated* 3,600 40,500
---------
4,432,432
FOOD & BEVERAGES - 1.58%
Bob Evans Farms, Incorporated 6,300 139,388
Chock Full O'Nuts Corporation 11,700 81,900
Earthgrains Corporation 13,000 611,000
Grist Mill Company* 11,000 110,000
International Multifoods Corporation 2,200 62,287
International Dairy Queen,
Incorporated 100 2,678
Taco Cabana, Incorporated 19,000 90,250
---------
1,097,503
The accompanying notes are an integral part of the financial statements.
84
<PAGE> 123
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
FOREST PRODUCTS - 0.24%
American Woodmark Corporation 7,600 $167,200
-------
HOMEBUILDERS - 0.53%
Beazer Homes USA, Incorporated* 5,300 105,669
Walter Industries, Incorporated 12,700 261,937
-------
367,606
HOTELS & RESTAURANTS - 2.53%
Ark Restaurants Corporation 700 8,225
Bertucci's, Incorporated 10,500 66,937
Brinker International, Incorporated* 27,100 433,600
Buffets, Incorporated* 31,900 299,063
Garden Fresh Restaurant Corporation 4,200 60,375
Luby's Cafeterias, Incorporated 13,400 235,338
Red Roof Inns, Incorporated* 9,200 140,875
Ryan's Family Steak Houses,
Incorporated* 28,800 246,600
ShowBiz Pizza Time, Incorporated* 11,700 269,100
---------
1,760,113
HOUSEHOLD APPLIANCES - 0.63%
American Biltrite, Incorporated 4,100 98,400
Graham Corporation 2,400 36,600
Libbey, Incorporated 800 30,300
Metatec Corporation* 7,000 33,250
Toro Company 5,600 238,700
-------
437,250
HOUSEHOLD PRODUCTS - 0.34%
Stanhome, Incorporated 9,300 238,894
-------
INDUSTRIAL MACHINERY - 2.99%
Cameron Ashley Building Product* 5,800 97,150
Gardner Denver Machinery,
Incorporated* 5,100 129,094
Kennametal, Incorporated 13,300 689,106
Lincoln Electric Company 700 27,300
Manitowoc, Incorporated 900 29,250
NACCO Industries, Incorporated 4,200 450,188
Quipp, Incorporated 2,300 37,950
Speizman Industries, Incorporated* 4,400 24,750
SPX Corporation 8,600 593,400
---------
2,078,188
INSURANCE - 2.93%
Acceptance Insurance Company 9,400 227,362
American Indemnity/Financial
Corporation 2,000 27,750
W.R. Berkley Corporation 1,100 48,262
Fidelity National Financial
Corporation 9,540 296,933
First American Financial Corporation 5,900 435,863
Guarantee Life Companies,
Incorporated 5,000 142,500
Intercontinental Life Corporation 1,700 34,000
Life USA Holdings, Incorporated 15,200 256,500
Presidential Life Corporation 6,800 137,700
PXRE Corporation 8,200 272,138
Stewart Information Services
Corporation 5,400 156,600
---------
2,035,608
LEISURE TIME - 0.93%
Anchor Gaming* 3,300 183,975
Children's Discovery Centers of
America, Incorporated 6,100 59,475
Inland Casino Corporation 6,500 24,375
Intrav, Incorporated 5,300 74,200
Movie Gallery, Incorporated 15,200 44,650
Play By Play Toys & Novelties,
Incorporated 6,100 110,944
Quintel Entertainment, Incorporated* 3,700 20,119
Video Lottery Technologies,
Incorporated 11,000 130,625
-------
648,363
METAL & METAL PRODUCTS - 0.86%
Encore Wire Corporation* 7,500 230,156
Mueller Industries, Incorporated* 6,200 365,800
-------
595,956
MINING - 0.56%
Cleveland-Cliffs, Incorporated 6,400 293,200
Pittston Company 3,800 99,750
-------
392,950
MOBILE HOMES - 1.28%
Fleetwood Enterprises, Incorporated 19,400 823,288
Oakwood Homes Corporation* 2,000 66,375
Schult Homes Corporation 100 2,075
-------
891,738
NEWSPAPERS - 0.42%
Media General, Incorporated 7,000 292,688
-------
NON-FERROUS METALS - 0.57%
Handy & Harman 1,400 48,300
Lindberg Corporation 4,900 73,500
Wolverine Tube, Incorporated* 8,800 272,800
-------
394,600
OFFICE FURNISHINGS & SUPPLIES - 0.74%
Kimball International, Incorporated 21,000 387,188
Winsloew Furniture, Incorporated 8,600 124,700
-------
511,888
PAPER - 0.99%
Chesapeake Corporation 2,000 68,750
FiberMark, Incorporated 7,300 156,950
Rock-Tenn Company 6,300 129,150
Shorewood Packaging Corporation* 10,700 286,225
Ultra Pac, Incorporated 4,900 47,775
-------
688,850
PETROLEUM SERVICES - 2.29%
Dawson Geophysical Company* 5,100 83,512
Lufkin Industries, Incorporated 5,700 203,775
Oceaneering International,
Incorporated* 14,600 288,350
Parker Drilling Company* 28,900 352,219
Petroleum Development Corporation 12,800 67,200
Pool Energy Services Company 11,800 262,550
Seitel, Incorporated 13,900 238,038
Varco International, Incorporated* 4,400 94,325
---------
1,589,969
The accompanying notes are an integral part of the financial statements.
85
<PAGE> 124
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
PHOTOGRAPHY - 0.30%
Innovex, Incorporated 3,900 $89,456
Optical Coating Laboratory,
Incorporated 8,600 118,250
-------
207,706
POLLUTION CONTROL - 0.64%
Allied Waste Industries, Incorporated* 9,100 212,144
Harding Lawson Associates Group 5,300 54,325
Zurn Industries, Incorporated 5,800 182,337
-------
448,806
PUBLISHING - 1.66%
Courier Corporation* 2,400 63,600
Houghton Mifflin Company 15,800 606,325
Mail-Well Holdings, Incorporated 8,100 328,050
Plenum Publishing Corporation 3,300 152,625
Pulitzer Publishing Company 100 6,281
---------
1,156,881
REAL ESTATE - 6.92%
Bay Apartment Communities,
Incorporated 15,000 585,000
Brandywine Realty Trust 3,000 75,375
Capstone Capital Corporation 1,800 46,013
China Pacific, Incorporated 10,200 11,475
Dominion Resources Black
Warrior Trust 4,300 86,000
Essex Property Trust 7,500 262,500
Excel Realty Trust, Incorporated 13,400 422,100
FelCor Suite Hotels, Incorporated* 1,600 56,800
First Industrial Realty Trust,
Incorporated 15,500 559,938
Glenborough Realty Trust,
Incorporated 10,600 314,025
Glimcher Realty Trust* 7,800 175,987
Healthcare Realty Trust 200 5,787
Highwood Properties, Incorporated 25,100 933,406
Hospitality Properties Trust 14,400 473,400
JDN Realty Corporation 700 22,663
J.W. Mays, Incorporated 1,000 11,500
Security Capital Atlantic, Incorporated 6,000 126,750
Taubman Centers, Incorporated* 19,700 256,100
Trinet Corporate Realty Trust,
Incorporated* 6,400 247,600
Walden Residential Properties,
Incorporated 5,400 137,700
---------
4,810,119
RETAIL GROCERY - 0.38%
Dominicks Supermarkets, Incorporated* 7,200 262,800
RETAIL TRADE - 3.82%
Ames Department Stores,
Incorporated 15,600 273,000
Bon-Ton Stores, Incorporated 7,000 105,000
Catherines Stores Corporation* 8,300 58,100
Cole National Corporation 6,700 200,581
Cruise America, Incorporated* 6,300 59,456
Damark International, Incorporated 7,100 69,225
Fingerhut Companies, Incorporated 16,400 350,550
Linens'n Things, Incorporated 7,900 344,637
Mac Frugal's Bargains-Close-Out,
Incorporated* 4,500 185,062
Perfunamia, Incorporated 4,900 11,331
Shopko Stores, Incorporated 12,300 267,525
Vans, Incorporated* 9,500 143,687
Video Update, Incorporated 14,900 29,800
Zale Corporation* 24,200 556,600
---------
2,654,554
SHIPBUILDING - 0.38%
Avondale Industries, Incorporated* 8,900 264,219
-------
SOFTWARE - 2.62%
Boole & Babbage, Incorporated 4,700 140,413
Datastream Systems, Incorporated 6,200 192,200
Expert Software, Incorporated* 7,300 26,006
Infinium Software, Incorporated* 11,700 190,125
Intersolv, Incorporated* 14,400 292,050
International Microcomp Software,
Incorporated 6,800 96,050
Mapics, Incorporated 20,000 217,500
Policy Management Systems
Corporation* 5,700 396,506
Progress Software Corporation* 10,200 220,575
Software Spectrum, Incorporated* 4,200 49,878
---------
1,821,303
STEEL - 0.49%
Steel of West Virginia, Incorporated* 7,500 68,437
Varlen Corporation 11,250 275,801
-------
344,238
TELECOMMUNICATION SERVICES - 0.87%
Atlantic Tele-Network, Incorporated 5,560 60,465
Centigram Communications Corporation 7,300 123,644
Commonwealth Tel Enterprises* 8,100 209,587
Emerging Communications 13,900 111,200
Superior Telecom, Incorporated* 2,800 96,775
-------
601,671
TELEPHONE - 0.04%
Hector Communications Corporation 3,100 28,675
------
TIRES & RUBBER - 0.04%
West, Incorporated 900 26,775
------
TRUCKING & FREIGHT - 2.72%
Airbourne Freight Corporation 14,400 894,600
Consolidated Freightways Corporation 15,000 204,375
Hvide Marine, Incorporated* 6,800 175,100
Roadway Express, Incorporated 10,000 221,250
Travel Ports America, Incorporated 2,200 7,425
Yellow Corporation 15,600 391,950
---------
1,894,700
TOTAL COMMON STOCKS
(Cost: $67,552,722) $66,310,010
----------
The accompanying notes are an integral part of the financial statements.
86
<PAGE> 125
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
REPURCHASE AGREEMENT - 4.62%
$3,215,000 Repurchase Agreement with
State Street Bank & Trust Company
dated 12/31/97 at 5.00% to be
repurchased at $3,215,893 on
01/02/98, collateralized by
$3,265,000 U.S. Treasury Notes,
5.50% due 11/15/98 (valued at
$3,304,144, including interest) $3,215,000
TOTAL INVESTMENTS
(Small Company Value Trust)
(Cost: $70,767,722) $69,525,010
==========
EQUITY TRUST
Shares Value
------ -----
COMMON STOCKS - 87.08%
AEROSPACE - 0.56%
Gencorp, Incorporated 69,000 $1,725,000
Gulfstream Aerospace Corporation* 142,100 4,156,425
Litton Industries, Incorporated 63,900 3,674,250
---------
9,555,675
AIR TRAVEL - 0.10%
Virgin Express Holdings PLC, ADR 82,400 1,709,800
---------
ALUMINUM - 1.08%
Aluminum Company of America 260,450 18,329,169
----------
APPAREL & TEXTILES - 1.51%
Kellwood Company 59,300 1,779,000
Mohank Industries, Incorporated* 280,000 6,142,500
Pacific Sunwear of California* 99,399 2,938,483
Reebok International, Ltd. 281,800 8,119,363
Stage Stores, Incorporated* 101,900 3,808,512
Unifi, Incorporated 70,500 2,868,469
----------
25,656,327
AUTOMOBILES - 0.23%
Harley Davidson, Incorporated 139,700 3,824,288
---------
BANKING - 1.96%
Banc One Corporation 53,500 2,905,719
Comerica, Incorporated 126,900 11,452,725
National Bank of Canada 62,000 1,023,897
New York Bancorp, Incorporated 41,500 1,647,031
North Fork Bancorporation,
Incorporated 136,000 4,564,500
U.S. Bancorp 90,825 10,166,723
Westamerica Bancorporation 15,000 1,533,750
----------
33,294,345
BROADCASTING - 1.79%
American Radio Systems Corporation* 170,800 9,105,775
Chancellor Media Corporation* 48,400 3,611,850
Clear Channel Communications 67,700 5,377,919
CBS Corporation 87,500 2,575,781
HSN, Incorporated 87,700 4,516,550
Viacom, Incorporated, Class A* 51,700 2,113,237
Viacom, incorporated, Class B* 75,000 3,107,813
----------
30,408,925
BUILDING MATERIALS & CONSTRUCTION - 1.06%
Fluor Corporation 276,900 10,349,138
Harsco Corporation 177,700 7,663,312
----------
18,012,450
BUSINESS SERVICES - 6.19%
AccuStaff, Incorporated* 143,300 3,295,900
America Online, Incorporated* 49,700 4,432,619
Banta Corporation 123,500 3,334,500
Cognizant Corporation 21,400 953,637
Computer Horizons Corporation* 92,200 4,149,000
Corrections Corporation of America* 62,100 2,301,581
Deluxe Corporation 514,200 17,739,900
DeVRY, Incorporated* 43,700 1,392,938
R. R. Donnelley & Sons Company 653,300 24,335,425
HBO & Company 80,300 3,854,400
Hagler Bailly, Incorporated* 58,100 1,307,250
Laidlaw, Incorporated 120,000 1,637,451
Manpower, Incorporated 7,100 250,275
NCR Corporation* 100,000 2,781,250
Omnicom Group 328,000 13,899,000
Personal Group of America,
Incorporated* 37,300 1,230,900
Pittston Brinks Group 2,600 104,650
Service Corporation International 64,600 2,386,162
Snyder Communications,
Incorporated* 37,800 1,379,700
Stone & Webster, Incorporated 279,300 13,092,188
VWR Scientific Products Corporation 39,000 1,101,750
-----------
104,960,476
CHEMICALS - 5.42%
Cabot Corporation 314,600 8,690,825
Cytec Industries, Incorporated* 115,500 5,421,281
Ferro Corporation 82,650 2,009,428
The B.F. Goodrich Company 76,400 3,165,825
M.A. Hanna Company 13,000 328,250
Hercules, Incorporated 293,300 14,683,331
Hexcel Corporation* 23,900 596,006
Lawter International, Incorporated 195,900 2,130,413
Nalco Chemical Company 356,000 14,084250
Olin Corporation 160,700 7,532,812
Twinlab Corporation* 42,900 1,061,775
Union Carbide Corporation 369,300 15,856,819
Valspar Corporation 58,800 1,874,250
Waters Corporation* 137,700 5,180,963
Witco Corporation 229,900 9,382,794
----------
91,999,022
The accompanying notes are an integral part of the financial statements.
87
<PAGE> 126
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMPUTERS & BUSINESS EQUIPMENT - 1.16%
Affiliated Computer Services,
Incorporated* 50,200 $1,320,888
Citrix Systems, Incorporated* 29,800 2,264,800
Computer Learning Centers,
Incorporated* 50,200 3,074,750
E*Trade Group, Incorporated* 80,900 1,860,700
Pitney Bowes, Incorporated 37,600 3,381,650
Seagate Technology, Incorporated* 165,000 3,176,250
Symbol Technologies, Incorporated 73,600 2,778,400
Unisys Corporation* 132,000 1,831,500
----------
19,688,938
CONGLOMERATES - 0.18%
Harcourt General, Incorporated 51,900 2,841,525
Triarc Companies, Incorporated* 10,600 288,850
---------
3,130,375
CONSTRUCTION & MINING EQUIPMENT - 0.24%
Foster Wheeler Corporation 57,900 1,566,919
Harnischfeger Industries, Incorporated 68,900 2,433,031
---------
3,999,950
CONSTRUCTION MATERIALS - 0.33%
Centex Construction Products,
Incorporated 11,800 355,475
Dayton Superior Corporation 51,600 851,400
Lafarge Corporation 58,200 1,720,537
Medusa Corporation 33,900 1,417,444
Sherwin Williams Company 31,600 876,900
USG Corporation* 6,600 323,400
---------
5,545,156
CONTAINERS & GLASS - 0.54%
Owens-Illinois, Incorporated* 190,450 7,225,197
Silgan Holdings, Incorporated* 57,900 1,881,750
---------
9,106,947
COSMETICS & TOILETRIES - 0.64%
Alberto Culver Company 265,100 7,157,700
Avon Products, Incorporated 60,600 3,719,325
----------
10,877,025
CRUDE PETROLEUM & NATURAL GAS - 1.87%
Apache Corporation 46,100 1,616,381
Burlington Resources, Incorporated 159,297 7,138,497
Enron Oil & Gas Company 112,200 2,377,238
Nuevo Energy Company* 108,200 4,409,150
Occidental Petroleum Corporation 400,000 11,725,000
Pioneer Natural Resources Company* 55,014 1,591,968
Renaissance Energy, Ltd.* 65,300 1,347,993
Weatherford Enterra, Incorporated* 36,000 1,575,000
----------
31,781,227
DOMESTIC OIL -0.49%
Amerada Hess Corporation 90,000 4,938,750
Unocal Corporation 85,700 3,326,231
---------
8,264,981
DRUGS & HEALTH CARE - 6.54%
Anesta Corporation* 37,400 612,425
Barr Laboratories, Incorporated* 2,800 95,550
Bausch & Lomb, Incorporated 353,900 14,023,289
Becton Dickinson & Company 5,000 250,000
Bristol-Myers Squibb Company 11,000 1,040,875
Cardinal Health, Incorporated 106,900 8,030,862
Columbia/HCA Healthcare Corporation 382,500 11,331,562
Cooper Companies, Incorporated* 62,000 2,534,250
Covance, Incorporated* 76,400 1,518,450
Cytyc Corporation* 54,900 1,365,637
Forest Laboratories, Incorporated* 49,300 2,431,106
Gilead Sciences, Incorporated* 32,400 1,239,300
Guidant Corporation 51,600 3,212,100
Health Management Association* 251,950 6,361,737
HEALTHSOUTH Corporation* 337,000 9,351,750
Incontrol, Incorporated* 20,800 122,200
McKesson Corporation 157,000 16,985,438
Medtronic, Incorporated 131,200 6,863,400
Physician Sales & Services,
Incorporated* 74,100 1,593,150
Sybron International Corporation* 123,300 5,787,394
United Healthcare Corporation 304,100 15,109,969
Young Innovations, Incorporated* 55,600 1,000,800
-----------
110,861,244
ELECTRIC UTILITIES - 0.08%
Consolidated Edison Company of
New York, Incorporated 31,400 1,287,400
---------
ELECTRICAL EQUIPMENT - 1.83%
Alcatel Alsthom, ADR 913,300 23,117,906
Boston Scientific Corporation* 94,900 4,353,538
General Electric Company 48,300 3,544,012
----------
31,015,456
ELECTRONICS - 4.41%
Alliant Techsystems, Incorporated* 54,000 3,010,500
Ametek Aerospace Products,
Incorporated 133,970 3,617,190
AMP, Incorporated 505,500 21,231,000
Boston Technology, Incorporated* 38,300 962,287
DSC Communications Corporation* 57,400 1,377,600
EG & G, Incorporated 357,500 7,440,469
Electronic Data Systems Corporation 274,200 12,047,663
Flextronics International* 27,700 955,650
Imation Corporation* 137,200 2,195,200
International Rectifier Group* 1,500 17,719
Leitch Technology Corporation* 51,400 1,546,622
Linear Technology Corporation 30,100 1,734,512
Micron Technology, Incorporated 456,300 11,863,800
Newport Corporation 14,800 208,125
Perkin-Elmer Corporation 46,200 3,283,087
Thermo Instrument Systems,
Incorporated* 93,874 3,232,786
----------
74,724,210
The accompanying notes are an integral part of the financial statements.
88
<PAGE> 127
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
FINANCIAL SERVICES - 1.22%
Allmerica Financial Corporation 5,100 $254,681
Associates First Capital Corporation 45,100 3,207,738
Equifax, Incorporated 199,300 7,062,694
Household International, Incorporated 34,800 4,439,175
Washington Mutual, Incorporated 64,200 4,096,762
Webster Financial Corporation 24,700 1,642,550
----------
20,703,600
FOOD & BEVERAGES - 3.08%
American Italian Pasta Company* 9,600 240,000
Deans Foods Company 94,700 5,634,650
Dole Food, Incorporated 550,000 25,162,500
Fresh Del Monte Produce* 63,200 924,300
Hudson Foods, Incorporated 67,400 1,385,912
Interstate Bakeries Corporation 132,600 4,955,925
JP Foodservice, Incorporated* 119,462 4,412,646
Pilgrims Pride Corporation 64,800 1,008,450
Suiza Foods Corporation* 47,900 2,853,044
Tyson Foods, Incorporated 157,700 3,232,850
Unilever 40,000 2,497,500
----------
52,307,777
FOREST PRODUCTS - 0.10%
Georgia-Pacific Corporation 20,000 1,215,000
Georgia-Pacific Corporation
(Timber Group)* 20,000 453,750
---------
1,668,750
FURNITURE & FIXTURES - 0.29%
Knoll, Incorporated 154,100 4,950,463
---------
GAS & PIPELINE UTILITIES - 0.97%
Cooper Cameron Corporation 93,900 5,727,900
Falcon Drilling 93,100 3,264,319
Ocean Energy, Incorporated* 152,400 7,515,225
----------
16,507,444
HOMEBUILDERS - 0.77%
Centex Corporation 44,100 2,775,544
Elcor Corporation 64,500 1,548,000
Lennar Corporation 104,738 2,258,413
NVR, Incorporated* 49,800 1,089,375
Toll Brothers, Incorporated* 63,400 1,695,950
U.S. Home Corporation 20,800 816,400
Walter Industries, Incorporated* 135,700 2,798,812
----------
12,982,494
HOTELS & RESTAURANTS - 1.43%
CKE Restaurants, Incorporated 135,650 5,714,256
Mirage Resorts, Incorporated 337,200 7,671,300
Pegasus Systems, Incorporated* 127,000 1,889,125
Promus Hotel Corporation* 28,900 1,213,800
Rainforest Cafe, Incorporated* 30,100 993,300
Star Buffet, Incorporated* 30,800 354,200
Tricon Global Restaurants,
Incorporated* 220,500 6,408,282
----------
24,244,263
HOUSEHOLD APPLIANCES - 2.44%
Bassett Furniture Industries,
Incorporated 17,400 522,000
Ethan Allen Interiors, Incorporated 121,200 4,673,775
Furniture Brands International,
Incorporated* 3,300 67,650
Leggett & Platt, Incorporated 339,400 14,212,375
Newell Company 99,900 4,245,750
Whirlpool Corporation 320,000 17,600,000
----------
41,321,550
HOUSEHOLD PRODUCTS - 2.73%
Black & Decker Corporation 348,400 13,609,375
Church & Dwight, Incorporated 84,000 2,357,250
Rubbermaid, Incorporated 823,200 20,580,000
The Stanley Works 100,500 4,742,344
Tupperware Corporation 179,100 4,992,412
----------
46,281,381
INDUSTRIAL MACHINERY - 2.65%
AAR Corporation 118,000 4,572,500
American Standard Companies,
Incorporated* 405,000 15,516,563
GaSonics International Corporation* 29,200 288,350
Group Maintenance America
Corporation* 5,300 89,106
Ingersoll-Rand Company 56,000 2,268,000
Kaydon Corporation 124,600 4,065,075
Pentair, Incorporated 123,200 4,427,500
Thermo Electron Corporation* 80,900 3,600,050
Tyco International, Incorporated 224,100 10,098,506
----------
44,925,650
INSURANCE - 1.36%
Aetna, Incorporated 43,500 3,069,469
AFLAC, Incorporated 87,600 4,478,550
Ambac Financial Group, Incorporated 55,200 2,539,200
American Bankers Insurance Group,
Incorporated 73,700 3,385,594
Gorman-Rupp Company* 2,500 52,812
Paula Financial* 55,500 1,276,500
Progressive Corporation 18,800 2,253,650
ProtectiveLife Corporation 11,900 711,025
SunAmerica, Incorporated 43,600 1,863,900
UNUM Corporation 50,400 2,740,500
Vesta Insurance Group, Incorporated 12,900 765,937
----------
23,137,137
LEATHER PRODUCTS - 0.11%
Samsonite Corporation* 59,800 1,891,175
---------
LEISURE TIME - 1.91%
Action Performance Companies,
Incorporated* 17,100 647,662
AMF Bowling, Incorporated* 57,100 1,427,500
Brunswick Corporation 405,000 12,276,562
Carnival Corporation 74,600 4,130,975
Cinar Films, Incorporated* 41,000 1,593,875
Cinar Films, Incorporated - CAD 26,300 980,004
The accompanying notes are an integral part of the financial statements.
89
<PAGE> 128
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
LEISURE TIME - CONTINUED
Premier Parks, Incorporated* 42,000 $1,701,000
The Walt Disney Company 23,500 2,327,969
Westwood One, Incorporated* 178,200 6,615,675
WMS Industries, Incorporated* 33,400 705,575
----------
32,406,797
MINING - 0.39%
Getchell Gold Corporation* 101,700 2,440,800
Newmont Mining Corporation 140,000 4,112,500
---------
6,553,300
MISCELLANEOUS - 1.62%
W.H. Brady Company 146,400 4,538,400
Cendant Corporation* 665,930 22,891,344
----------
27,429,744
MOBILE HOMES - 0.26%
Oakwood Homes Corporation 131,800 4,374,113
---------
NEWSPAPERS - 0.41%
Central Newspapers, Incorporated 20,900 1,545,294
Tribune Company 87,900 5,471,775
---------
7,017,069
OFFICE FURNISHINGS & SUPPLIES - 0.30%
Reynolds & Reynolds Company 277,200 5,110,875
---------
PAPER - 0.75%
Fort James Corporation 130,875 5,005,969
Ivex Packaging Corporation 123,800 2,971,200
Unisource Worldwide, Incorporated 338,100 4,817,925
----------
12,795,094
PETROLEUM SERVICES - 2.02%
EVI, Incorporated 49,900 2,582,325
Noble Drilling Corporation* 51,300 1,571,062
Reading & Bates Corporation* 115,300 4,828,188
Tosco Corporation 253,000 9,566,563
Total SA, B Shares 20,000 2,176,622
Total SA, ADR 10,000 555,000
Transocean Offshore, Incorporated 139,900 6,741,431
Valero Energy Corporation 196,900 6,190,044
----------
34,211,235
PHOTOGRAPHY - 1.06%
Polaroid Corporation 370,200 18,024,113
----------
PLASTICS - 1.00%
First Brands Corporation 375,600 10,117,725
Sealed Air Corporation* 83,800 5,174,650
Spartech Corporation 101,600 1,536,700
----------
16,829,075
POLLUTION CONTROL - 3.91%
Browning Ferris Industries,
Incorporated 786,600 29,104,200
Eastern Environmental Services,
Incorporated* 34,000 748,000
USA Waste Services, Incorporated* 543,537 21,333,827
Waste Industries, Incorporated* 1,300 24,212
Waste Management, Incorporated 549,800 15,119,500
----------
66,329,739
PUBLISHING - 0.51%
Eltron International Company* 127,100 3,844,775
John H. Harland Company 195,000 4,095,000
Scholastic Corporation* 20,900 783,750
---------
8,723,525
REAL ESTATE - 0.19%
Bedford Property Investments,
Incorporated 25,900 566,562
Brandywine Realty Trust 43,900 1,102,987
LNR Property Corporation 59,800 1,412,775
SL Green Realty Corporation 8,500 220,469
---------
3,302,793
RETAIL GROCERY - 1.09%
Hannaford Brothers Company 109,300 4,747,719
Safeway, Incorporated* 141,200 8,930,900
Starbucks Corporation* 126,900 4,869,787
----------
18,548,406
RETAIL TRADE - 9.96%
99 Cents Only Stores* 1,213 35,769
AnnTaylor Stores Corporation* 224,200 2,998,675
Arbor Drugs, Incorporated 148,700 2,750,950
Brylane, Incorporated* 62,700 3,087,975
Charming Shoppes, Incorporated* 81,500 382,031
Consolidated Stores Corporation* 316,631 13,911,975
CVS Corporation 162,300 10,397,344
Dollar Tree Stores, Incorporated* 124,000 5,130,500
Federated Department Stores,
Incorporated* 660,000 28,421,250
Haverty Furniture Companies,
Incorporated 18,100 244,350
Heilig-Meyers Company 474,900 5,698,800
Hudson Bay Company 94,400 2,103,943
The Limited, Incorporated 427,600 10,903,800
Mac Frugal's Bargains-Close-Out,
Incorporated* 59,000 2,426,375
Michael's Stores, Incorporated* 80,700 2,360,475
Musicland Stores, Incorporated* 60,000 438,750
Payless ShoeSource, Incorporated* 47,600 3,195,150
Proffitt's, Incorporated* 227,200 6,461,000
Ross Stores, Incorporated 140,600 5,114,325
TJX Companies, Incorporated 266,200 9,150,625
Wal-Mart Stores, Incorporated 1,260,000 49,691,250
Zale Corporation 173,900 3,999,700
-----------
168,905,012
SHIPBUILDING - 0.18%
Avondale Industries, Incorporated* 103,300 3,066,719
SOFTWARE - 2.01%
BMC Software, Incorporated* 83,600 5,486,250
CIBER, Incorporated* 30,700 1,780,600
Compuware Corporation* 173,700 5,558,400
Dialogic Corporation* 46,000 2,012,500
Keane, Incorporated* 216,000 8,775,000
Siebal Systems, Incorporated* 72,000 3,010,500
Symantec Corporation* 218,800 4,799,925
Synopsys, Incorporated* 75,300 2,691,975
----------
34,115,150
The accompanying notes are an integral part of the financial statements.
90
<PAGE> 129
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
STEEL - 0.70%
Nucor Corporation 219,000 $10,580,438
Steel Dynamics, Incorporated* 76,100 1,217,600
----------
11,798,038
TELECOMMUNICATION SERVICES - 0.14%
Mobile Telecommunication
Technologies Corporation* 3,900 85,800
Teleport Communications Group* 41,700 2,288,287
---------
2,374,087
TELEPHONE - 2.68%
Cincinnati Bell, Incorporated 900,800 27,924,800
Worldcom, Incorporated* 580,095 17,547,874
----------
45,472,674
TOBACCO - 0.23%
Philip Morris Companies,
Incorporated 80,000 3,625,000
UST, Incorporated 9,000 332,437
---------
3,957,437
TOYS, AMUSEMENTS & SPORTING GOODS - 0.23%
Mattel, Incorporated 102,700 3,825,575
---------
TRUCKING & FREIGHT - 0.17%
C.H. Robinson Worldwide 30,500 682,438
Ryder System, Incorporated 49,600 1,624,400
Wisconsin Central Transportation
Corporation* 25,000 584,375
---------
2,891,213
TOTAL COMMON STOCKS
(Cost: $1,409,069,803) $1,477,016,853
-------------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 11.25%
$190,931,857 Navigator Securities
Lending Trust, 5.74% $190,931,857
-----------
REPURCHASE AGREEMENT - 1.65%
$28,137,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/97 at 5.00%, to be
repurchased at $28,144,816 on
01/02/98, collateralized by
$26,870,000 U.S. Treasury Notes,
7.50% due 11/15/01 (valued at
$28,956,573, including interest) $28,137,000
----------
TOTAL INVESTMENTS
(Equity Trust) (Cost: $1,628,138,660) $1,696,085,710
=============
GROWTH TRUST
Shares Value
------ -----
COMMON STOCKS - 73.08%
AEROSPACE - 0.34%
Gulfstream Aerospace Corporation* 21,850 $639,113
-------
AIR TRAVEL - 2.40%
Galileo International, Incorporated 70,825 1,956,541
Deutsche Lufthansa AG 81,200 1,557,241
Southwest Airlines Company 39,462 971,752
---------
4,485,534
AUTOMOBILES - 1.37%
Ford Motor Credit Company 52,650 2,563,397
---------
BANKING - 1.60%
BankAmerica Corporation 15,425 1,126,025
Chase Manhattan Corporation 8,950 980,025
Mellon Bank Corporation 14,550 882,094
---------
2,988,144
BROADCASTING - 1.40%
CBS Corporation 71,050 2,091,535
Jacor Communications, Incorporated* 9,675 513,984
2,605,519
BUILDING MATERIALS & CONSTRUCTION - 1.20%
Lowe's Companies, Incorporated 46,900 2,236,544
---------
BUSINESS SERVICES - 2.40%
Cognizant Corporation 30,400 1,354,700
Fiserv, Incorporated* 63,525 3,120,666
---------
4,475,366
CHEMICALS - 0.19%
Imperial Chemical Industries PLC, ADR 5,500 357,156
COMPUTERS & BUSINESS EQUIPMENT - 1.12%
Bay Networks, Incorporated* 6,450 164,878
Hewlett-Packard Company 17,775 1,110,937
Oce-Van Der Grinten 7,500 817,449
---------
2,093,264
CRUDE PETROLEUM & NATURAL GAS - 0.35%
B.J. Services Company* 9,150 658,228
-------
DRUGS & HEALTH CARE - 11.62%
ALZA Corporation* 40,100 1,275,681
American Home Products Corporation 9,025 690,412
Bristol-Myers Squibb Company 27,650 2,616,381
Dura Pharmaceuticals, Incorporated* 27,800 1,275,325
Eli Lilly and Company 69,100 4,811,088
HEALTHSOUTH Corporation* 51,000 1,415,250
Merck & Company, Incorporated 16,650 1,769,063
Novartis AG 1,050 1,703,052
Pfizer, Incorporated 48,050 3,582,728
SmithKline Beecham PLC, ADR 30,250 1,555,984
Stryker Corporation 26,975 1,004,819
----------
21,699,783
ELECTRICAL EQUIPMENT - 2.93%
General Electric Company 65,400 4,798,725
Phillips Electronics, ADR 11,275 682,138
---------
5,480,863
ELECTRONICS - 5.91%
Altera Corporation* 46,750 1,548,594
CIENA Corporation* 42,850 2,619,206
Electronic Data Systems Corporation 28,150 1,236,841
The accompanying notes are an integral part of the financial statements.
91
<PAGE> 130
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
ELECTRONICS - CONTINUED
Lam Research Corporation* 4,100 $119,925
Maxim Integrated Products,
Incorporated* 67,400 2,325,300
Tellabs, Incorporated* 28,125 1,487,109
Xilinx, Incorporated* 48,325 1,694,395
----------
11,031,370
FINANCIAL SERVICES - 8.14%
Associates First Capital
Corporation, Class A 27,075 1,925,709
Beneficial Corporation 9,100 756,437
Capital One Financial Corporation 29,075 1,575,502
CIT Group, Incorporated* 28,950 933,638
Federal National Mortgage Association 32,475 1,853,105
Hartford Financial Services Group 22,500 2,109,834
H.F. Ahmanson & Company 26,925 1,802,292
SLM Holding Corporation 17,950 2,497,294
Washington Mutual, Incorporated 27,257 1,739,337
----------
15,193,148
FOOD & BEVERAGES - 3.75%
Coca-Cola Enterprises, Incorporated 58,025 2,063,514
Pepsico, Incorporated 44,750 1,630,578
Ralston Purina Company 10,550 980,491
Sara Lee Corporation 41,350 2,328,522
---------
7,003,105
HOTELS & RESTAURANTS - 0.90%
Mirage Resorts, Incorporated* 73,600 1,674,400
---------
HOUSEHOLD APPLIANCES - 3.66%
Hunter Douglas 12,050 421,942
Maytag Corporation 81,000 3,022,312
Sunbeam Corporation 80,650 3,397,381
---------
6,841,635
HOUSEHOLD PRODUCTS - 3.61%
Dial Corporation 73,925 1,538,564
Gillette Company 24,400 2,450,675
Proctor & Gamble Company 34,550 2,757,522
---------
6,746,761
INDUSTRIAL MACHINERY - 0.62%
Crane Company 26,600 1,153,775
---------
INSURANCE - 2.65%
Allstate Corporation 22,700 2,062,863
Everest Reinsurance Holdings 27,725 1,143,656
Marsh & McLennan Companies,
Incorporated 11,700 872,381
The Progressive Corporation 7,200 863,100
---------
4,942,000
LEISURE TIME - 1.12%
The Walt Disney Company 21,200 2,100,125
---------
PAPER - 1.83%
Fort James Corporation 32,250 1,233,563
International Paper Company 24,700 1,065,187
Mead Corporation 40,200 1,125,600
---------
3,424,350
PETROLEUM SERVICES - 2.82%
Baker Hughes, Incorporated 45,900 2,002,387
Reading & Bates Corporation* 34,250 1,434,219
Schlumberger, Ltd. 22,650 1,823,325
---------
5,259,931
POLLUTION CONTROL - 0.32%
Allied Waste Industries, Incorporated* 25,500 594,469
RETAIL TRADE - 1.42%
Dayton Hudson Corporation 19,875 1,341,563
Toys R Us, Incorporated* 41,550 1,306,228
---------
2,647,791
SOFTWARE - 3.79%
Microsoft Corporation* 38,950 5,034,288
PeopleSoft, Incorporated* 36,350 1,417,650
VERITAS Software Company* 12,400 632,400
---------
7,084,338
TELECOMMUNICATION SERVICES - 0.37%
Lucent Technologies, Incorporated 8,725 696,909
-------
TELEPHONE - 2.29%
American Telephone & Telegraph
Corporation 17,675 1,082,594
MCI Communications Corporation 74,525 3,190,601
---------
4,273,195
TOBACCO - 2.21%
Philip Morris Companies, Incorporated 50,875 2,305,273
RJR Nabisco Corporation 48,750 1,828,125
---------
4,133,398
TRUCKING & FREIGHT - 0.75%
CNF Transportation, Incorporated 36,350 1,394,932
---------
TOTAL COMMON STOCKS
(Cost: $122,635,718) $136,478,543
-----------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 8.75%
$16,341,262 Navigator Securities
Lending Trust, 5.74% $16,341,262
----------
REPURCHASE AGREEMENT - 18.16%
$33,923,000 Repurchase Agreement with
State Street Bank & Trust Company
dated 12/31/97 at 5.00% to be
repurchased at $33,932,423 on
01/02/98, collateralized by
$27,640,000 U.S. Treasury Bonds,
7.875% due 02/15/21 (valued at
$35,418,069, including interest) $33,923,000
----------
TOTAL INVESTMENTS
(Growth Trust) (Cost: $172,899,980) $186,742,805
===========
The accompanying notes are an integral part of the financial statements.
92
<PAGE> 131
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
QUANTITATIVE EQUITY TRUST
Shares Value
------ -----
COMMON STOCKS - 85.07%
AEROSPACE - 0.62%
United Technologies Corporation 15,500 $1,128,594
---------
AIR TRAVEL - 0.41%
Galileo International, Incorporated 5,000 138,125
Southwest Airlines Company 24,300 598,387
-------
736,512
APPAREL & TEXTILES - 0.51%
Jones Apparel Group, Incorporated* 21,300 915,900
-------
AUTO PARTS - 0.89%
Eaton Corporation 18,000 1,606,500
---------
AUTOMOBILES - 2.66%
Chrysler Corporation 32,500 1,143,594
Ford Motor Company 39,900 1,942,631
General Motors Corporation 19,200 1,164,000
PACCAR, Incorporated 10,400 546,000
---------
4,796,225
BANKING - 14.04%
Banc One Corporation 34,400 1,868,350
BankAmerica Corporation 28,000 2,044,000
BankBoston Corporation 22,100 2,076,019
Bankers Trust New York Corporation 16,700 1,877,706
Chase Manhattan Corporation 18,300 2,003,850
Citicorp 15,000 1,896,562
First Union Corporation 33,300 1,706,625
Fleet Financial Group, Incorporated 24,000 1,798,500
KeyCorp 17,600 1,246,300
MBNA Corporation 52,575 1,435,955
National City Corporation 26,600 1,748,950
NationsBank Corporation 26,900 1,635,856
Northern Trust Corporation 18,100 1,262,475
PNC Bank Corporation 34,700 1,980,069
State Street Corporation 13,000 756,438
----------
25,337,655
BROADCASTING - 0.39%
Clear Channel Communications* 8,800 699,050
-------
BUSINESS SERVICES - 3.13%
AccuStaff, Incorporated* 19,900 457,700
First Data Corporation 25,300 740,025
Omnicom Group 27,600 1,169,550
Outsource International, Incorporated* 75,000 909,375
Peapod, Incorporated* 11,500 74,750
Quintiles Transnational Corporation* 29,900 1,143,675
Robert Half International Corporation* 28,750 1,150,000
---------
5,645,075
CHEMICALS - 1.95%
Crompton & Knowles Corporation 22,700 601,550
E.I. Du Pont De Nemours & Company 17,500 1,051,094
Hercules, Incorporated 25,500 1,276,594
Praxair, Incorporated 13,100 589,500
---------
3,518,738
COMPUTERS & BUSINESS EQUIPMENT - 3.31%
Cabletron Systems, Incorporated* 27,500 412,500
Cisco Systems, Incorporated* 15,000 836,250
Compaq Computer Corporation 13,700 773,194
International Business Machines
Corporation 9,500 993,344
Pitney Bowes, Incorporated 13,000 1,169,188
Seagate Technology* 26,200 504,350
Sun Microsystems, Incorporated* 5,700 227,287
Sundstrand Corporation 21,000 1,057,875
---------
5,973,988
CONSTRUCTION MATERIALS - 0.45%
Masco Corporation 16,000 814,000
-------
CRUDE PETROLEUM & NATURAL GAS - 0.94%
Occidental Petroleum Corporation 57,600 1,688,400
---------
DOMESTIC OIL - 2.20%
Atlantic Richfield Company 20,200 1,618,525
Phillips Petroleum Company 21,800 1,060,025
USX Marathon Group 38,300 1,292,625
---------
3,971,175
DRUGS & HEALTH CARE - 3.16%
Baxter International, Incorporated 34,300 1,730,006
Dura Pharmaceuticals, Incorporated* 12,000 550,500
General Nutrition Companies,
Incorporated* 23,300 792,200
Merck & Company, Incorporated 12,400 1,317,500
Pharmacia & Upjohn, Incorporated 17,600 644,600
Watson Pharmaceuticals, Incorporated* 20,600 668,213
---------
5,703,019
ELECTRIC UTILITIES - 0.91%
CalEnergy, Incorporated* 8,400 241,500
Dominion Resources, Incorporated 18,000 766,125
PG&E Group, Incorporated 20,700 630,056
---------
1,637,681
ELECTRICAL EQUIPMENT - 3.02%
Cooper Industries, Incorporated* 35,000 1,715,000
Emerson Electric Company 13,600 767,550
General Cable Corporation 43,200 1,563,300
General Electric Company 19,100 1,401,463
---------
5,447,313
ELECTRONICS - 4.45%
AMP, Incorporated 36,500 1,533,000
Intel Corporation 16,100 1,131,025
LSI Logic Corporation* 30,500 602,375
Motorola, Incorporated 21,200 1,209,725
Raytheon Company, Class A* 1,224 60,359
Raytheon Company, Class B 40,000 2,020,000
Silicon Graphics, Incorporated* 29,900 371,881
Texas Instruments, Incorporated 24,600 1,107,000
---------
8,035,365
The accompanying notes are an integral part of the financial statements.
93
<PAGE> 132
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
FINANCIAL SERVICES - 2.59%
H.F. Ahmanson & Company 15,100 $1,010,756
American Express Company 11,300 1,008,525
Capital One Financial Corporation 12,100 655,669
Travelers Group, Incorporated 37,050 1,996,069
---------
4,671,019
FOOD & BEVERAGES - 3.71%
Archer-Daniels-Midland Company 59,495 1,290,298
Coca-Cola Enterprises, Incorporated 10,100 359,181
Conagra, Incorporated 27,300 895,781
General Mills, Incorporated 10,500 752,063
Interstate Bakeries Corporation 13,000 485,875
PepsiCo, Incorporated 35,700 1,300,819
Quaker Oats Company 18,900 996,975
Sysco Corporation 13,600 619,650
---------
6,700,642
FOREST PRODUCTS - 0.93%
Georgia-Pacific Corporation 20,200 1,227,150
Georgia-Pacific Corporation
(Timber Group)* 20,200 458,287
---------
1,685,437
GAS & PIPELINE UTILITIES - 2.41%
Coastal Corporation 30,000 1,858,125
Consolidated Natural Gas Company 22,000 1,331,000
Cooper Cameron Corporation 11,800 719,800
Ocean Energy, Incorporated* 8,900 438,881
---------
4,347,806
HOTELS & RESTAURANTS - 0.46%
Hilton Hotels Corporation 27,700 824,075
---------
HOUSEHOLD APPLIANCES - 0.75%
Sunbeam Corporation 13,900 585,537
Whirlpool Corporation 14,000 770,000
---------
1,355,537
HOUSEHOLD PRODUCTS - 0.82%
Clorox Company 8,100 640,406
Gillette Company 8,300 833,631
-------
1,474,037
INDUSTRIAL MACHINERY - 2.59%
AES Corporation* 21,600 1,007,100
Applied Materials, Incorporated* 22,400 674,800
Ingersol Rand Company 32,150 1,302,075
Tyco International, Ltd. 37,400 1,685,337
---------
4,669,312
INSURANCE - 5.62%
Aetna, Incorporated 18,300 1,291,294
Allstate Corporation 19,900 1,808,413
American International Group,
Incorporated 11,950 1,299,562
Conseco, Incorporated 5,500 249,906
General RE Corporation 7,100 1,505,200
Marsh and McLennan Companies,
Incorporated 21,500 1,603,094
MGIC Investment Corporation 19,400 1,290,100
SunAmerica, Incorporated 11,800 504,450
Travelers Property Casualty
Corporation 13,400 589,600
----------
10,141,619
INTERNATIONAL OIL - 1.52%
Chevron Corporation 25,600 1,971,200
Texaco, Incorporated 14,200 772,125
---------
2,743,325
LEISURE TIME - 1.12%
Carnival Corporation 21,400 1,185,025
The Walt Disney Company 8,500 842,031
---------
2,027,056
MISCELLANEOUS - 0.45%
Dollar Thrifty Automotive Group 40,000 820,000
-------
NEWSPAPERS - 0.33%
New York Times Company 8,900 588,512
-------
PAPER - 1.75%
Fort James Corporation 42,700 1,633,275
Union Camp Corporation 28,300 1,519,356
---------
3,152,631
PETROLEUM SERVICES - 1.91%
Dresser Industries, Incorporated 24,300 1,019,081
EVI, Incorporated* 11,100 574,425
Halliburton Company 23,700 1,230,919
Nabors Industries, Incorporated* 20,100 631,894
---------
3,456,319
POLLUTION CONTROL - 0.31%
Browning Ferris Industries,
Incorporated 15,152 560,624
PUBLISHING - 0.83% -------
McGraw-Hill Companies, Incorporated 20,300 1,502,200
REAL ESTATE - 0.58% ---------
Equity Residential Properties Trust 8,400 424,725
Simon DeBartolo Group, Incorporated 18,900 617,794
-------
1,042,519
RETAIL GROCERY - 0.61%
American Stores Company 53,500 1,100,094
---------
RETAIL TRADE - 4.10%
AutoZone, Incorporated* 32,100 930,900
CVS Corporation 15,400 986,563
Dayton Hudson Corporation 21,400 1,444,500
Federated Department Stores,
Incorporated* 30,800 1,326,325
Lowe's Companies, Incorporated 23,700 1,130,194
TJX Companies, Incorporated 21,800 749,375
Toys R Us, Incorporated* 26,200 823,662
---------
7,391,519
SOFTWARE - 2.51%
BMC Software, Incorporated* 8,500 557,813
Cadence Design Systems, Incorporated* 8,600 210,700
Electronic Arts* 14,900 563,406
The accompanying notes are an integral part of the financial statements.
94
<PAGE> 133
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
SOFTWARE - CONTINUED
HBO & Company* 15,500 $744,000
Informix Corporation* 41,700 198,075
Microsoft Corporation* 9,100 1,176,175
PeopleSoft, Incorporated* 27,600 1,076,400
---------
4,526,569
TELECOMMUNICATION SERVICES - 0.72%
Lucent Technologies, Incorporated 16,200 1,293,975
---------
TELEPHONE - 2.24%
Airtouch Communications, Incorporated* 34,400 1,429,750
U.S. West, Incorporated 30,200 1,362,775
WorldCom, Incorporated* 41,370 1,251,442
---------
4,043,967
TOBACCO - 2.83%
Philip Morris Companies, Incorporated 72,100 3,267,031
RJR Nabisco Holdings Corporation 49,200 1,845,000
---------
5,112,031
TRUCKING & FREIGHT - 0.34%
Air Express International Corporation 2,800 85,400
Airbourne Freight Corporation 8,500 528,062
-------
613,462
TOTAL COMMON STOCKS
(Cost: $134,568,399) $153,499,477
-----------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 7.35%
$13,267,548 Navigator Securities
Lending Trust, 5.74% $13,267,548
----------
REPURCHASE AGREEMENT - 7.57%
$13,669,000 Repurchase Agreement with
State Street Bank & Trust Company
dated 12/31/97 at 5.85% to be
repurchased at $13,673,442 on
01/02/98 collateralized by
$13,505,000 U.S. Treasury Notes,
6.75% due 04/30/00 (valued at
$14,099,197, including interest) $13,669,000
----------
TOTAL INVESTMENTS (Quantitative
Equity Trust) (Cost: $161,504,947) $180,436,025
===========
EQUITY INDEX TRUST
Shares Value
------ -----
COMMON STOCKS - 70.52%
AEROSPACE - 1.27%
AlliedSignal, Incorporated 1,610 $62,689
Boeing Company 2,837 138,836
General Dynamics Corporation 177 15,299
Lockheed Martin Corporation 551 54,274
Northrop Grumman Corporation 176 20,240
Rockwell International Corporation 601 31,402
TRW, Incorporated 354 18,895
United Technologies Corporation 673 49,003
-------
390,638
AGRICULTURAL MACHINERY - 0.18%
Case Corporation 212 12,813
Deere & Company 722 42,102
------
54,915
AIR TRAVEL - 0.29%
AMR Corporation* 260 33,410
Delta Air Lines, Incorporated 209 24,871
Southwest Airlines Company 622 15,317
US Airways Group, Incorporated* 239 14,938
------
88,536
ALUMINUM - 0.21%
Alcan Aluminum, Ltd. 646 17,846
Aluminum Company of America 495 34,835
Reynolds Metals Company 209 12,540
------
65,221
APPAREL & TEXTILES - 0.24%
Fruit of The Loom, Incorporated* 214 5,484
Liz Claiborne, Incorporated 200 8,363
NIKE, Incorporated 822 32,264
Reebok International, Ltd.* 160 4,610
Russell Corporation 104 2,763
Springs Industries, Incorporated 58 3,016
Stride Rite Corporation 79 948
V.F. Corporation 362 16,629
------
74,077
AUTO PARTS - 0.20%
Dana Corporation 295 14,013
Eaton Corporation 219 19,546
Echlin, Incorporated 178 6,441
Genuine Parts Company 512 17,376
Meritor Automotive, Incorporated 115 2,422
------
59,798
AUTOMOBILES - 1.21%
Chrysler Corporation 1,941 68,299
Ford Motor Company 3,392 165,148
General Motors Corporation 2,075 125,797
PACCAR, Incorporated 221 11,603
-------
370,847
BANKING - 5.91%
Banc One Corporation 1,645 89,344
Bank of New York, Incorporated 1,092 63,131
BankAmerica Corporation 2,005 146,365
BankBoston Corporation 416 39,078
Bankers Trust New York Corporation 248 27,885
Barnett Banks, Incorporated 566 40,681
BB & T Corporation 167 10,698
Chase Manhattan Corporation 1,218 133,371
Citicorp 1,312 165,886
Comerica, Incorporated 300 27,075
Corestates Financial Corporation 582 46,596
The accompanying notes are an integral part of the financial statements.
95
<PAGE> 134
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
BANKING - CONTINUED
Fifth Third Bancorp 446 $36,461
First Chicago NBD Corporation 868 72,478
First Union Corporation 1,698 87,023
Fleet Financial Group, Incorporated 731 54,779
Huntington Bancshares, Incorporated 234 8,424
KeyCorp 629 44,541
MBNA Corporation 1,426 38,948
Mellon Bank Corporation 728 44,135
J.P. Morgan & Companies, Incorporated 518 58,469
National City Corporation 621 40,831
NationsBank Corporation 2,055 124,970
Norwest Corporation 2,130 82,271
PNC Bank Corporation 897 51,185
Republic New York Corporation 155 17,699
State Street Corporation 196 11,405
SunTrust Banks, Incorporated 619 44,181
Synovus Financial Corporation 214 7,009
U.S. Bancorp 696 77,909
Wachovia Corporation 468 37,967
Wells Fargo & Company 252 85,538
---------
1,816,333
BROADCASTING - 0.77%
Clear Channel Communications* 120 9,533
Comcast Corporation 995 31,405
Tele-Communications, Incorporated 1,697 47,410
CBS Corporation 1,895 55,784
U S West, Incorporated* 1,726 49,838
Viacom, Incorporated* 1,003 41,562
-------
235,532
BUILDING MATERIALS & CONSTRUCTION - 0.03%
Fluor Corporation 240 8,970
-----
BUSINESS SERVICES - 0.71%
Automatic Data Processing, Incorporated 833 51,125
H & R Block, Incorporated 296 13,265
Cognizant Corporation 473 21,078
Deluxe Corporation 234 8,073
R. R. Donnelley & Sons Company 417 15,533
EcoLab, Incorporated 184 10,201
First Data Corporation 1,270 37,148
Interpublic Group Companies, Incorporated 352 17,534
Laidlaw, Incorporated 912 12,426
Safety-Kleen Corporation 166 4,555
Service Corporation International 696 25,709
-------
216,647
CHEMICALS - 1.78%
Air Products & Chemicals, Incorporated 312 25,662
Dow Chemical Company 658 66,787
E.I. Du Pont De Nemours & Company 3,215 193,101
Eastman Chemical Company 223 13,282
Engelhard Corporation 410 7,124
FMC Corporation* 105 7,068
The B.F. Goodrich Company 154 6,381
W.R. Grace & Company 207 16,650
Great Lakes Chemical Corporation 170 7,629
Hercules, Incorporated 284 14,218
Monsanto Company 1,681 70,602
Morton International, Incorporated 390 13,406
Nalco Chemical Company 190 7,517
PPG Industries, Incorporated 512 29,248
Praxair, Incorporated 449 20,205
Rohm & Haas Company 176 16,852
Sigma-Aldrich Corporation 286 11,369
Solutia, Incorporated 192 5,124
Union Carbide Corporation 356 15,286
-------
547,511
COMPUTERS & BUSINESS EQUIPMENT - 4.06%
Apple Computer* 361 4,738
Applied Materials, Incorporated* 1,034 31,149
3Com Corporation 960 33,540
Bay Networks, Incorporated* 580 14,826
Cabletron Systems, Incorporated* 446 6,690
Ceridian Corporation* 223 10,216
Cisco Systems, Incorporated* 2,842 158,442
Compaq Computer Corporation 2,137 120,607
Computer Sciences Corporation* 218 18,203
Data General Corporation* 124 2,162
Dell Computer Corporation* 948 79,632
Digital Equipment Corporation* 435 16,095
EMC Corporation* 1,403 38,495
Hewlett-Packard Company 2,921 182,563
Honeywell, Incorporated 362 24,797
Intergraph Corporation 78 780
International Business Machines
Corporation 2,813 294,134
Lowe's Companies, Incorporated 494 23,558
Pitney Bowes, Incorporated 413 37,144
Seagate Technology, Incorporated* 697 13,417
Silicon Graphics, Incorporated* 503 6,256
Sun Microsystems, Incorporated* 1,050 41,869
Tandy Corporation 306 11,800
Unisys Corporation* 498 6,910
Xerox Corporation 922 68,055
---------
1,246,078
CONGLOMERATES - 0.24%
Aeroquip-Vickers, Incorporated 79 3,876
Fortune Brands, Incorporated 488 18,087
Harcourt General, Incorporated 201 11,005
ITT Industries, Incorporated* 337 10,573
Textron, Incorporated 470 29,375
------
72,916
CONSTRUCTION & MINING EQUIPMENT - 0.27%
Caterpillar, Incorporated 1,073 52,108
Dover Corporation 636 22,975
Foster Wheeler Corporation 116 3,139
Harnischfeger Industries, Incorporated 140 4,944
------
83,166
The accompanying notes are an integral part of the financial statements.
96
<PAGE> 135
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
CONSTRUCTION MATERIALS - 0.17%
Armstrong World Industries, Incorporated 116 $8,671
Masco Corporation 464 23,606
Owens-Corning 151 5,153
Sherwin Williams Company 491 13,625
------
51,055
CONTAINERS & GLASS - 0.14%
Ball Corporation 86 3,037
Bemis, Incorporated 151 6,653
Crown Cork & Seal, Incorporated 366 18,346
Owens-Illinois, Incorporated* 172 6,525
Temple-Inland, Incorporated 160 8,370
------
42,931
COSMETICS & TOILETRIES - 0.14%
Alberto Culver Company 160 5,130
Avon Products, Incorporated 376 23,077
International Flavours & Fragrances,
Incorporated 311 16,017
------
44,224
CRUDE PETROLEUM & NATURAL GAS - 0.40%
Anadarko Petroleum Corporation 73 4,430
Apache Corporation 110 3,857
Burlington Resources, Incorporated 503 22,541
EEX Corporation 170 1,541
Enron Oil & Gas Company 870 36,159
Occidental Petroleum Corporation 940 27,554
Oryx Energy Company* 300 7,650
Santa Fe Energy Resources, Incorporated* 162 1,822
Union Pacific Resources Group,
Incorporated 722 17,508
-------
123,062
DOMESTIC OIL - 0.77%
Amerada Hess Corporation 263 14,432
Ashland, Incorporated 212 11,382
Atlantic Richfield Company 915 73,314
Kerr-McGee Corporation 136 8,611
Pennzoil Company 134 8,953
Phillips Petroleum Company 750 36,469
Sun Company, Incorporated 208 8,749
Tenneco, Incorporated 486 19,197
Unocal Corporation 707 27,440
USX-Marathon Group 819 27,641
-------
236,188
DRUGS & HEALTH CARE - 7.72%
Abbott Laboratories 2,197 144,041
Allergan, Incorporated 185 6,209
ALZA Corporation* 242 7,699
American Home Products Corporation 1,838 140,607
Amgen, Incorporated 754 40,810
Bausch & Lomb, Incorporated 158 6,261
Baxter International, Incorporated 793 39,997
Becton Dickinson & Company 347 17,350
Beverly Enterprises, Incorporated* 161 2,093
Biomet, Incorporated 317 8,123
Bristol-Myers Squibb Company 2,841 268,830
Cardinal Health, Incorporated 309 23,214
Columbia/HCA Healthcare Corporation 1,883 55,784
C.R. Bard, Incorporated 163 5,104
Crescendo Pharmaceuticals Corporation 6 69
Eli Lilly & Company 3,164 220,294
Guidant Corporation 421 26,207
HEALTHSOUTH Corporation* 1,031 28,610
Humana, Incorporated* 465 9,649
Johnson & Johnson 3,789 249,600
Mallinckrodt, Incorporated 209 7,942
Manor Care, Incorporated 181 6,335
Medtronic, Incorporated 1,346 70,413
Merck & Company, Incorporated 3,436 365,075
Pfizer, Incorporated 3,676 274,092
Pharmacia & Upjohn, Incorporated 1,445 52,923
Pharmerica, Incorporated 73 757
Schering-Plough Corporation 2,084 129,469
St. Jude Medical, Incorporated* 260 7,930
Tenet Healthcare Corporation* 859 28,454
United Healthcare Corporation 531 26,384
United States Surgical Corporation 209 6,126
Warner-Lambert Company 773 95,852
---------
2,372,303
ELECTRIC UTILITIES - 1.90%
American Electric Power, Incorporated 537 27,723
Baltimore Gas & Electric Company 420 14,306
Carolina Power & Light Company 430 18,248
Central & South West Corporation 604 16,346
CINergy Corporation 449 17,202
Consolidated Edison Company of
New York, Incorporated 669 27,429
Dominion Resources, Incorporated 526 22,388
DTE Energy Company 413 14,326
Duke Energy Company 1,023 56,649
Edison International 1,151 31,293
Entergy Corporation 681 20,387
FirstEnergy Corporation 529 15,341
FPL Group, Incorporated 519 30,718
GPU, Incorporated 344 14,491
Houston Industries, Incorporated 896 23,912
Niagara Mohawk Power Corporation* 411 4,316
Northern States Power Company 202 11,767
PP&L Resources, Incorporated 469 11,227
PacifiCorp 842 22,997
Peco Energy Company 633 15,350
PG&E Corporation 1,200 36,525
Public Service Enterprise Group 661 20,945
Southern Company 1,944 50,301
Texas Utilities Company 684 28,429
Unicom Corporation 615 18,911
Union Electric Company 291 12,586
-------
584,113
The accompanying notes are an integral part of the financial statements.
97
<PAGE> 136
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
ELECTRICAL EQUIPMENT - 2.77%
Boston Scientific Corporation* 553 $25,369
Cooper Industries, Incorporated 341 16,709
Emerson Electric Company 1,265 71,393
General Electric Company 9,328 684,442
General Semiconductor, Incorporated 59 682
General Signal Corporation 144 6,075
W.W. Grainger, Incorporated 145 14,092
Johnson Controls, Incorporated 238 11,365
Millipore Corporation* 124 4,208
National Service Industries, Incorporated 128 6,344
Raychem Corporation 249 10,723
-------
851,402
ELECTRONICS - 2.19%
Advanced Micro Devices, Incorporated* 400 7,175
AMP, Incorporated 625 26,250
Andrew Corporation 258 6,192
Commscope, Incorporated 79 1,061
DSC Communications Corporation* 335 8,040
EG & G, Incorporated 131 2,726
Harris Corporation 227 10,414
Intel Corporation 4,655 327,014
KLA-Tencor Corporation 102 3,940
LSI Logic Corporation* 403 7,959
Micron Technology, Incorporated* 599 15,574
Motorola, Incorporated 1,693 96,607
National Semiconductor Corporation* 426 11,049
Nextlevel Systems, Incorporated 418 7,472
Perkin-Elmer Corporation 125 8,883
Raytheon Company, Class A 132 6,509
Raytheon Company, Class B 673 33,987
Scientific-Atlanta, Incorporated 221 3,702
TekTronix, Incorporated 142 5,636
Tellabs, Incorporated* 514 27,178
Texas Instruments, Incorporated 1,089 49,005
Thomas & Betts Corporation 155 7,324
-------
673,697
FINANCIAL SERVICES - 4.14%
H.F. Ahmanson & Company 282 18,876
American Express Company 1,341 119,684
Beneficial Corporation 152 12,635
Countrywide Credit Industries,
Incorporated 301 12,905
Equifax, Incorporated 429 15,203
Federal Home Loan Mortgage
Corporation 1,978 82,952
Federal National Mortgage Association 3,020 172,329
Green Tree Financial Corporation 387 10,134
Golden West Financial Corporation 162 15,846
Hartford Financial Services Group 335 31,343
Household International, Incorporated 304 38,779
Merrill Lynch & Company, Incorporated 943 68,780
Morgan Stanley Dean Witter 1,647 97,379
Providian Financial Corporation 267 12,065
Charles Schwab Corporation 749 31,411
SPDR Trust 3,990 387,279
Travelers Group, Incorporated 1,858 100,100
Washington Mutual, Incorporated 712 45,434
---------
1,273,134
FOOD & BEVERAGES - 4.31%
Archer-Daniels-Midland Company 1,594 34,570
Campbell Soup Company 1,317 76,551
The Coca-Cola Company 7,057 470,173
ConAgra, Incorporated 1,354 44,428
CPC International, Incorporated 409 44,070
General Mills, Incorporated 457 32,733
H.J. Heinz Company 1,048 53,251
Hershey Foods Corporation 423 26,199
Kellogg Company 1,178 58,458
PepsiCo, Incorporated 4,359 158,831
Pioneer Hi-Bred International,
Incorporated 213 22,844
Quaker Oats Company 389 20,520
Ralston Purina Company 303 28,160
Sara Lee Corporation 1,367 76,979
Super Valu, Incorporated 171 7,161
Sysco Corporation 496 22,599
Unilever N.V. 1,822 113,761
Whitman Corporation 289 7,532
William Wrigley Jr Company 331 26,335
---------
1,325,155
FOREST PRODUCTS - 0.18%
Georgia-Pacific Corporation 261 15,856
Georgia-Pacific Corporation
(Timber Group) 261 5,921
Louisiana Pacific Corporation 311 5,909
Weyerhaeuser Company 566 27,769
------
55,455
GAS & PIPELINE UTILITIES - 0.34%
Coastal Corporation 302 18,705
Columbia Gas System, Incorporated 158 12,413
Consolidated Natural Gas Company 271 16,396
Eastern Enterprises 58 2,610
NICOR, Incorporated 138 5,822
Pacific Enrterprises 237 8,917
Peoples Energy Corporation 100 3,937
Sonat, Incorporated 245 11,209
Williams Companies, Incorporated 902 25,594
-------
105,603
GOLD - 0.08%
Barrick Gold Corporation 1,061 19,761
Battle Mountain Gold Company 654 3,842
-----
23,603
HOMEBUILDERS - 0.03%
Centex Corporation 82 5,161
Kaufman & Broad Home Corporation 110 2,468
Pulte Corporation 60 2,509
------
10,138
The accompanying notes are an integral part of the financial statements.
98
<PAGE> 137
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
HOTELS & RESTAURANTS - 0.65%
Darden Restaurants, Incorporated 435 $5,437
Hilton Hotels Corporation 711 21,152
ITT Corporation 331 27,432
Marriot International, Incorporated 362 25,069
McDonald's Corporation 1,961 93,638
Mirage Resorts, Incorporated* 219 4,982
Tricon Global Restaurants, Incorporated* 435 12,642
Wendy's International, Incorporated 374 8,999
-------
199,351
HOUSEHOLD APPLIANCES - 0.13%
Maytag Corporation 279 10,410
Newell Company 452 19,210
Whirlpool Corporation 212 11,660
------
41,280
HOUSEHOLD PRODUCTS - 2.03%
Black & Decker Corporation 268 10,469
Clorox Company 294 23,244
Colgate-Palmolive Company 841 61,814
Corning, Incorporated 654 24,280
Gillette Company 1,589 159,595
Procter & Gamble Company 3,851 307,358
Rubbermaid, Incorporated 426 10,650
Snap-On, Incorporated 174 7,591
The Stanley Works 253 11,938
Tupperware Corporation 175 4,878
-------
621,817
INDUSTRIAL MACHINERY - 0.50%
Briggs & Stratton Corporation 72 3,496
Cincinnati Milacron, Incorporated 114 2,957
Crane Company 130 5,639
Cummins Engine, Incorporated 109 6,438
Ingersoll-Rand Company 467 18,913
NACCO Industries, Incorporated 23 2,465
Pall Corporation 361 7,468
Parker-Hannifin Corporation 318 14,588
Thermo Electron Corporation* 428 19,046
Timken Company 178 6,119
Tyco International, Ltd. 1,443 65,025
UNOVA, Incorporated 87 1,430
-------
153,584
INSURANCE - 2.80%
Aetna, Incorporated 428 30,201
Allstate Corporation 1,248 113,412
American General Corporation 695 37,573
American International Group,
Incorporated 2,000 217,500
Aon Corporation 474 27,788
ChoicePoint, Incorporated 24 1,146
Chubb Corporation 495 37,434
CIGNA Corporation 210 36,343
Conseco, Incorporated 527 23,946
General Re Corporation 228 48,336
Jefferson-Pilot Corporation 202 15,731
Lincoln National Corporation 293 22,891
Loews Corporation 328 34,809
Marsh & McLennan Companies,
Incorporated 475 35,417
MBIA, Incorporated 249 16,636
MGIC Investment Corporation 331 22,012
Progressive Corporation 88 10,549
SAFECO Corporation 375 18,281
ST. Paul Companies, Incorporated 239 19,613
SunAmerica, Incorporated 556 23,769
Torchmark, Incorporated 395 16,615
Transamerica Corporation 185 19,702
UNUM Corporation 398 21,641
USF&G Corporation 315 6,950
-------
858,295
INTERNATIONAL OIL - 4.13%
Amoco Corporation 1,402 119,345
Chevron Corporation 1,861 143,297
Exxon Corporation 7,056 431,739
Mobil Corporation 2,238 161,556
Royal Dutch Petroleum Company 6,102 330,652
Texaco, Incorporated 1,526 82,976
--------
1,269,565
LEISURE TIME - 0.69%
Brunswick Corporation 282 8,548
Harrahs Entertainment, Incorporated* 290 5,474
King World Productions, Incorporated 106 6,121
The Walt Disney Company 1,921 190,299
-------
210,442
LIQUOR - 0.36%
Adolph Coors Company 106 3,524
Anheuser-Busch Companies,
Incorporated 1,406 61,864
Brown-Forman Corporation 196 10,829
Seagram Company, Ltd. 1,055 34,090
-------
110,307
MINING - 0.16%
Cyprus Amax Minerals Company 266 4,090
Echo Bay Mines, Ltd.* 396 965
Freeport McMoRan Copper & Gold 568 8,946
Homestake Mining Company 418 3,710
Newmont Mining Corporation 444 13,043
Phelps Dodge Corporation 175 10,894
Placer Dome, Incorporated 682 8,653
------
50,301
MISCELLANEOUS - 0.25%
Cendant Corporation* 2,247 77,241
------
MOBILE HOMES - 0.01%
Fleetwood Enterprises, Incorporated 102 4,329
-----
NEWSPAPERS - 0.44%
Dow Jones & Company, Incorporated 272 14,603
Gannett, Incorporated 806 49,821
Knight-Ridder, Incorporated 255 13,260
New York Times Company 272 17,986
The accompanying notes are an integral part of the financial statements.
99
<PAGE> 138
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
NEWSPAPERS - CONTINUED
Times Mirror Company 272 $16,728
Tribune Company 349 21,725
-------
134,123
NON-FERROUS METALS - 0.04%
ASARCO, Incorporated 121 2,715
Inco, Ltd. 474 8,058
------
10,773
OFFICE FURNISHINGS & SUPPLIES - 0.09%
Avery Dennison Corporation 294 13,156
Ikon Office Solutions, Incorporated 377 10,603
Moore Corporation, Ltd. 251 3,796
------
27,555
PAPER - 0.94%
Boise Cascade Corporation 147 4,447
Champion International Corporation 272 12,325
Fort James Corporation 371 14,191
International Paper Company 858 37,001
Kimberly-Clark Corporation 1,589 78,358
Mead Corporation 298 8,344
Minnesota Mining & Manufacturing
Company 1,184 97,162
Potlatch Corporation 82 3,526
Stone Container Corporation* 282 2,943
Union Camp Corporation 197 10,577
Westvaco Corporation 291 9,148
Willamette Industries, Incorporated 316 10,171
-------
288,193
PETROLEUM SERVICES - 0.73%
Baker Hughes, Incorporated 474 20,678
Dresser Industries, Incorporated 500 20,969
Halliburton Company 721 37,447
Helmerich & Payne, Incorporated 71 4,819
McDermott International, Incorporated 157 5,750
ONEOK, Incorporated 83 3,351
Rowan Companies, Incorporated* 245 7,472
Schlumberger, Ltd. 1,407 113,263
Western Atlas, Incorporated* 153 11,322
-------
225,071
PHOTOGRAPHY - 0.21%
Eastman Kodak Company 932 56,677
Polaroid Corporation 129 6,281
------
62,958
PLASTICS - 0.14%
Illinois Tool Works, Incorporated 710 42,689
------
POLLUTION CONTROL - 0.16%
Browning Ferris Industries, Incorporated 370 13,690
Waste Management, Incorporated 1,289 35,447
------
49,137
PUBLISHING - 0.49%
American Greetings Corporation 214 8,373
Dun & Bradstreet Corporation 486 15,036
John H. Harland Company 88 1,848
McGraw-Hill Companies, Incorporated 283 20,942
Meredith Corporation 152 5,424
Time Warner, Incorporated 1,592 98,704
-------
150,327
RAILROADS & EQUIPMENT - 0.49%
Burlington Northern Santa Fe 440 40,892
CSX Corporation 619 33,426
Norfolk Southern Corporation 1,073 33,062
Union Pacific Corporation 703 43,894
-------
151,274
RETAIL GROCERY - 0.34%
Albertsons, Incorporated 707 33,494
American Stores Company 775 15,936
Fleming Companies, Incorporated 107 1,438
Giant Foods, Incorporated 170 5,727
Great Atlantic & Pacific Tea,
Incorporated 109 3,236
Kroger Company* 723 26,706
Winn-Dixie Stores, Incorporated 424 18,523
-------
105,060
RETAIL TRADE - 2.88%
AutoZone, Incorporated 430 12,470
Charming Shoppes, Incorporated 300 1,406
Circuit City Stores, Incorporated 279 9,922
Costco Companies, Incorporated* 603 26,909
CVS Corporation 481 30,814
Dayton Hudson Corporation 618 41,715
Dillard's, Incorporated 321 11,315
Federated Department Stores,
Incorporated* 594 25,579
Gap, Incorporated 1,158 41,037
Home Depot, Incorporated 2,075 122,166
Jostens, Incorporated 111 2,560
Kmart Corporation* 1,382 15,979
The Limited, Incorporated 772 19,686
Longs Drug Stores Corporation 111 3,566
May Department Stores Company 669 35,248
Mercantile Stores, Incorporated 105 6,392
Nordstrom, Incorporated 223 13,464
J.C. Penney, Incorporated 705 42,520
Pep Boys-Manny, Moe & Jack 176 4,202
Rite Aid Corporation 349 20,482
Sears Roebuck & Company 1,115 50,454
TJX Companies, Incorporated 452 15,537
Toys R Us, Incorporated* 813 25,559
Wal-Mart Stores, Incorporated 6,446 254,214
Walgreen Company 1,402 43,988
Woolworth Corporation* 383 7,804
-------
884,988
SOFTWARE - 2.08%
Adobe Systems, Incorporated 205 8,456
Autodesk, Incorporated 137 5,069
Computer Associates International,
Incorporated 1,552 82,062
HBO & Company 242 11,616
Microsoft Corporation* 3,411 440,872
Novell, Incorporated* 990 7,425
The accompanying notes are an integral part of the financial statements.
100
<PAGE> 139
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
SOFTWARE - CONTINUED
Oracle Systems Corporation* 2,789 $62,230
Parametric Technology Corporation* 363 17,197
Shared Medical Systems Corporation 70 4,620
-------
639,547
STEEL - 0.14%
Allegheny Teldyne, Incorporated 501 12,963
Armco, Incorporated* 305 1,506
Bethleham Steel Corporation* 320 2,760
Inland Steel Industries, Incorporated 139 2,380
Nucor Corporation 250 12,078
USX-U.S. Steel Group 244 7,625
Worthington Industries, Incorporated 275 4,538
------
43,850
TELECOMMUNICATION SERVICES - 0.99%
AirTouch Communications, Incorporated* 1,433 59,559
ALLTEL Corporation 531 21,801
Frontier Corporation 467 11,237
Lucent Technologies, Incorporated 1,823 145,612
Northern Telecom, Ltd. 742 66,038
-------
304,247
TELEPHONE - 4.54%
American Telephone & Telegraph
Corporation 4,624 283,220
Ameritech Corporation 1,563 125,821
Bell Atlantic Corporation 2,209 201,019
BellSouth Corporation 2,823 158,970
GTE Corporation 2,719 142,068
MCI Communications Corporation 1,961 83,955
SBC Communications, Incorporated 2,598 190,303
Sprint Corporation 1,225 71,816
U.S. West, Incorporated 1,364 61,550
Worldcom, Incorporated* 2,553 77,228
---------
1,395,950
TIRES & RUBBER - 0.11%
Cooper Tire & Rubber Company 224 5,460
Goodyear Tire & Rubber Company 444 28,249
------
33,709
TOBACCO - 1.08%
Philip Morris Companies, Incorporated 6,905 312,883
UST, Incorporated 523 19,318
332,201
TOYS, AMUSEMENTS & SPORTING GOODS - 0.14%
Hasbro, Incorporated 363 11,434
Mattel, Incorporated 828 30,843
------
42,277
TRUCKING & FREIGHT - 0.12%
Caliber Systems, Incorporated 111 5,404
Federal Express Corporation* 327 19,968
------
Navistar International Corporation,
Incorporated* 208 5,161
Ryder System, Incorporated 219 7,172
------
37,705
TOTAL COMMON STOCKS (Cost: $21,346,162) $21,661,394
----------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENTS - 24.89%
$400,000 Caterpillar Financial Services NV,
5.66% due 02/17/98 $397,044
400,000 Cregem North America, Incorporated,
5.685% due 02/18/98 396,968
1,500,000 Federal National Mortgage Association,
5.64% due 02/11/98 1,490,365
400,000 Merrill Lynch & Company, Incorporated,
5.71% due 02/18/98 396,955
400,000 MetLife Funding, Incorporated,
5.72% due 02/22/98 398,665
3,720,737 Navigator Securities
Lending Trust, 5.74% 3,720,737
250,000 United Parcel Service,
5.60% due 02/13/98 248,328
United States Treasury Bills,****
100,000 5.11% due 02/12/98 99,404
500,000 5.12% due 02/12/98 497,013
---------
7,645,479
REPURCHASE AGREEMENT - 4.59%
$1,411,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.85% to be repurchased
at $1,411,459 on 01/02/98,
collateralized by $1,415,000
U.S. Treasury Notes, 6.375% due
04/30/99 (valued at $1,457,341,
including interest) $1,411,000
---------
TOTAL INVESTMENTS
(Equity Index Trust) (Cost: $30,402,641) $30,717,873
==========
BLUE CHIP GROWTH TRUST
Shares Value
------ -----
COMMON STOCKS - 85.97%
AEROSPACE - 1.88%
AlliedSignal, Incorporated 239,200 $9,313,850
Boeing Company 23,500 1,150,031
Lockheed Martin Corporation 39,800 3,920,300
----------
14,384,181
AIR TRAVEL - 0.20%
Galileo International, Incorporated 56,300 1,555,288
---------
APPAREL & TEXTILES - 1.06%
Unifi, Incorporated 79,600 3,238,725
Warnaco Group, Incorporated, Class A 155,100 4,866,263
---------
8,104,988
AUTO PARTS - 0.88%
Danaher Corporation 106,800 6,741,750
---------
BANKING - 7.94%
Banc One Corporation 114,000 6,191,625
BankBoston Corporation 53,000 4,978,687
The accompanying notes are an integral part of the financial statements.
101
<PAGE> 140
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
BANKING - CONTINUED
The Chase Manhattan Corporation 59,800 $6,548,100
Citicorp 55,300 6,991,994
First Union Corporation 107,600 5,514,500
Mellon Bank Corporation 144,100 8,736,063
Mercantile Bancorporation,
Incorporated 30,400 1,869,600
NationsBank Corporation 66,500 4,044,031
Norwest Corporation 191,800 7,408,275
U.S. Bancorp 52,000 5,820,750
Wells Fargo & Company 7,900 2,681,556
----------
60,785,181
BROADCASTING - 0.50%
U.S. West, Incorporated* 132,300 3,820,163
---------
BUSINESS SERVICES - 4.45%
Automatic Data Processing,
Incorporated 89,100 5,468,512
H & R Block, Incorporated 113,600 5,090,700
R. R. Donnelley & Sons Company 34,900 1,300,025
First Data Corporation 184,700 5,402,475
National Data Corporation 39,600 1,430,550
Nokia Corporation, ADR 33,900 2,373,000
Omnicom Group 83,800 3,551,025
Service Corporation International 154,500 5,706,844
SunGard Data Systems, Incorporated* 120,400 3,732,400
----------
34,055,531
CHEMICALS - 1.74%
E.I. Du Pont De Nemours & Company 54,000 3,243,375
Great Lakes Chemical Corporation 77,400 3,473,325
Hercules, Incorporated 67,400 3,374,213
Olin Corporation 30,000 1,406,250
Sigma-Aldrich Corporation 45,000 1,788,750
----------
13,285,913
COMPUTERS & BUSINESS EQUIPMENT - 4.36%
Cisco Systems, Incorporated* 106,350 5,929,013
Compaq Computer Corporation 84,250 4,754,859
Dell Computer Corporation* 25,500 2,142,000
EMC Corporation* 62,000 1,701,125
Hewlett-Packard Company 67,400 4,212,500
Honeywell, Incorporated 65,800 4,507,300
International Business Machines
Corporation 61,100 6,388,769
Sun Microsystems, Incorporated* 39,600 1,579,050
Xerox Corporation 29,000 2,140,562
----------
33,355,178
CONGLOMERATES - 0.27%
Textron, Incorporated 33,000 2,062,500
---------
CONSTRUCTION MATERIALS - 0.57%
Masco Corporation 86,000 4,375,250
---------
CONTAINERS & GLASS - 0.32%
Crown Cork & Seal, Incorporated 49,100 2,461,138
---------
CRUDE PETROLEUM & NATURAL GAS - 0.27%
BJ Services Company* 29,000 2,086,188
---------
DOMESTIC OIL - 0.96%
Atlantic Richfield Company 50,300 4,030,288
USX-Marathon Group 99,100 3,344,625
---------
7,374,913
DRUGS & HEALTH CARE - 11.39%
Abbott Laboratories 38,300 2,511,044
American Home Products Corporation 79,900 6,112,350
Baxter International, Incorporated 40,700 2,052,806
Biogen, Incorporated* 41,000 1,491,375
Bristol-Myers Squibb Company 69,000 6,529,125
General Nutrition Companies,
Incorporated* 99,100 3,369,400
HEALTHSOUTH Corporation* 144,000 3,996,000
Johnson & Johnson 99,700 6,567,738
Eli Lilly & Company 34,200 2,381,175
McKesson Corporation 6,200 670,762
Medtronic, Incorporated 65,300 3,416,006
Merck & Company, Incorporated 88,200 9,371,250
Pfizer, Incorporated 123,800 9,230,837
Schering-Plough Corporation 84,800 5,268,200
SmithKline Beecham PLC, ADR 96,400 4,958,575
St. Jude Medical, Incorporated 48,000 1,464,000
Tenet Healthcare Corporation* 107,500 3,560,938
United Healthcare Corporation 112,000 5,565,000
United States Surgical Corporation 133,300 3,907,356
Warner-Lambert Company 38,700 4,798,800
----------
87,222,737
ELECTRICAL EQUIPMENT - 2.01%
ASM Lithography Holding NV 18,500 1,248,750
Boston Scientific Corporation* 59,100 2,711,212
General Electric Company 103,800 7,616,325
Hubbell, Incorporated, Class B 77,400 3,816,787
----------
15,393,074
ELECTRONICS - 2.69%
Intel Corporation 73,600 5,170,400
KLA-Tencor Corporation 21,000 811,125
Linear Technology Corporation 36,000 2,074,500
Maxim Integrated Products,
Incorporated* 88,000 3,036,000
Motorola, Incorporated 45,700 2,607,756
Raytheon Company 20,800 1,050,400
Teleflex, Incorporated 154,000 5,813,500
----------
20,563,681
FINANCIAL SERVICES - 6.60%
American Express Company 82,900 7,398,825
Associates First Capital Corporation 6,000 426,750
CIT Group, Incorporated 31,200 1,006,200
Corporate Express, Incorporated* 122,500 1,577,188
Federal Home Loan Mortgage
Corporation 199,900 8,383,306
Federal National Mortgage Association 146,900 8,382,481
Household International, Incorporated 41,800 5,332,113
The Money Store, Incorporated 34,600 726,600
Morgan Stanley Dean Witter 26,300 1,554,987
SLM Holding Corporation 39,600 5,509,350
The accompanying notes are an integral part of the financial statements.
102
<PAGE> 141
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
FINANCIAL SERVICES - CONTINUED
Travelers Group, Incorporated 189,700 $10,220,088
----------
50,517,888
FOOD & BEVERAGES - 4.43%
Cadbury Schweppes 250,000 2,523,209
Dean Foods Company 30,000 1,785,000
H.J. Heinz Company 65,000 3,302,813
Hershey Foods Corporation 37,500 2,322,656
Interstate Bakeries Corporation 53,200 1,988,350
JP Foodservices, Incorporated* 58,748 2,169,986
Nabisco Holdings Corporation, Class A 67,300 3,259,844
PepsiCo, Incorporated 153,900 5,607,731
Ralston Purina Company 31,400 2,918,237
Sara Lee Corporation 120,300 6,774,393
Unilever NV 20,800 1,298,700
----------
33,950,919
GAS PIPELINE UTILITIES - 0.45%
Cooper Cameron Corporation* 56,600 3,452,600
---------
HOTELS & RESTAURANTS - 0.31%
McDonald's Corporation 49,700 2,373,175
---------
HOUSEHOLD APPLIANCES - 0.70%
Newell Company 78,300 3,327,750
Sony Company, ADR 22,000 1,996,500
---------
5,324,250
HOUSEHOLD PRODUCTS - 1.98%
Black & Decker Corporation 14,000 546,875
Colgate-Palmolive Company 68,700 5,049,450
Corning, Incorporated 52,900 1,963,913
Gillette Company 14,600 1,466,387
Procter & Gamble Company 42,600 3,400,013
The Stanley Works 58,400 2,755,750
----------
15,182,388
INDUSTRIAL MACHINERY - 1.47%
SPX Corporation 38,600 2,663,400
Tyco International, Ltd. 191,532 8,630,911
----------
11,294,311
INSURANCE - 4.21%
ACE, Ltd. 87,200 8,414,800
American International Group,
Incorporated 26,150 2,843,813
EXEL, Ltd.* 59,000 3,739,125
Mid Ocean, Ltd. 70,000 3,797,500
St. Paul Companies, Incorporated 47,600 3,906,175
Travelers Property Casualty
Corporation, Class A 152,600 6,714,400
UNUM Corporation 51,400 2,794,875
----------
32,210,688
INTERNATIONAL OIL - 1.91%
The British Petroleum Company
PLC, ADR 55,800 4,446,562
Mobil Corporation 89,600 6,468,000
Texaco, Incorporated 68,400 3,719,250
----------
14,633,812
LEISURE TIME - 1.73%
Carnival Corporation, Class A 103,900 5,753,463
The Walt Disney Company 75,300 7,459,406
----------
13,212,869
MINING - 0.29%
Newmont Mining Corporation 74,500 2,188,438
---------
MISCELLANEOUS - 0.96%
Cendant Corporation* 215,800 7,418,125
---------
NEWSPAPERS - 0.79%
Tribune Company 97,500 6,069,375
---------
OFFICE FURNISHINGS & SUPPLIES - 0.22%
Wallace Computer Service,
Incorporated 42,500 1,652,187
---------
PAPER - 0.57%
Kimberly-Clark Corporation 88,800 4,378,950
---------
PETROLEUM SERVICES - 0.61%
Camco International, Incorporated 14,500 923,469
Halliburton Company 71,800 3,729,112
---------
4,652,581
POLLUTION CONTROL - 0.43%
USA Waste Services, Incorporated* 83,500 3,277,375
---------
PUBLISHING - 1.01%
Time Warner, Incorporated 88,100 5,462,200
Valassis Communications, Incorporated* 62,400 2,308,800
---------
7,771,000
RAILROADS & EQUIPMENT - 0.53%
Burlington Northern Santa Fe 35,200 3,271,400
Norfolk Southern Corporation 25,600 788,800
---------
4,060,200
REAL ESTATE - 1.32%
Crescent Real Estate Equities 48,000 1,890,000
Patriot American Hospitality,
Incorporated 99,998 2,881,192
Starwood Lodging Trust 92,500 5,353,438
----------
10,124,630
RETAIL GROCERY - 1.25%
American Stores Company 77,500 1,593,594
Safeway, Incorporated* 126,400 7,994,800
---------
9,588,394
RETAIL TRADE - 3.97%
CVS Corporation 96,283 6,168,130
Dayton Hudson Corporation 21,000 1,417,500
Federated Department Stores,
Incorporated* 89,600 3,858,400
Fred Meyer, Incorporated 70,400 2,560,800
The Home Depot, Incorporated 70,350 4,141,856
Kohl's Corporation* 41,500 2,827,187
Neiman-Marcus Group, Incorporated* 95,000 2,873,750
J.C. Penney, Incorporated 32,000 1,930,000
The accompanying notes are an integral part of the financial statements.
103
<PAGE> 142
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
RETAIL TRADE - CONTINUED
Wal-Mart Stores, Incorporated 116,500 $4,594,469
----------
30,372,092
SOFTWARE - 3.27%
BMC Software, Incorporated* 92,600 6,076,875
Microsoft Corporation* 57,000 7,367,250
Networks Associates, Incorporated* 89,400 4,727,025
Oracle Systems Corporation* 62,000 1,383,375
Parametric Technology Corporation* 71,700 3,396,787
Synopsys, Incorporated* 57,400 2,052,050
----------
25,003,362
TELECOMMUNICATION SERVICES - 0.57%
ALLTEL Corporation 75,000 3,079,687
Lucent Technologies, Incorporated 16,300 1,301,962
---------
4,381,649
TELEPHONE - 3.19%
American Telephone & Telegraph
Corporation 80,200 4,912,250
MCI Communications Corporation 114,900 4,919,156
SBC Communications, Incorporated 112,700 8,255,275
Vodafone Group PLC, ADR 45,300 3,284,250
WorldCom, Incorporated* 101,300 3,064,325
----------
24,435,256
TOBACCO - 1.01%
Philip Morris Companies, Incorporated 170,600 7,730,312
---------
TOYS, AMUSEMENTS & SPORTING GOODS - 0.70%
Mattel, Incorporated 143,300 5,337,925
---------
TOTAL COMMON STOCKS
(Cost: $504,763,949) $658,222,405
-----------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENTS - 13.98%
$6,319,000 Caisse Des Depots Et Consign,
5.85% due 01/15/98 $6,304,624
30,000,000 CIESCO LP, 5.60% due 02/10/98 29,813,334
55,974,160 Navigator Securities
Lending Trust, 5.74% 55,974,160
15,000,000 Transamerica Finance Corporation,
5.70% due 01/23/98 14,947,750
-----------
107,039,868
REPURCHASE AGREEMENT - 0.05%
$367,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.00%, to be
repurchased at $367,102 on
01/02/98, collateralized by
$375,380 U.S. Treasury Notes,
6.00% due 08/15/00 (valued at
$383,592, including interest) $367,000
-------
TOTAL INVESTMENTS
(Blue Chip Growth Trust) (Cost: $612,170,817) $765,629,273
===========
REAL ESTATE SECURITIES TRUST
COMMON STOCKS - 87.08%
REAL ESTATE - 87.08%
Apartment Investment & Management
Company, Class A 110,500 $4,060,875
Arden Realty, Incorporated 45,850 1,409,888
Avalon Properties, Incorporated 49,300 1,525,219
Bay Apartment Communities,
Incorporated 32,650 1,273,350
Boston Properties, Incorporated 124,400 4,112,975
Brandywine Realty Trust SBI 4,200 105,525
BRE Properties, Incorporated 52,700 1,482,188
Camden Property Trust 129,000 3,999,000
Capital Trust* 82,000 922,500
CarrAmerica Realty Corporation 85,300 2,702,944
CBL & Associates Properties,
Incorporated 117,200 2,893,375
Centerpoint Properties Corporation 23,987 842,543
Chateau Communities, Incorporated 31,570 994,455
Chelsea GCA Realty, Incorporated 75,400 2,879,338
Colonial Properties Trust 109,250 3,291,156
Cornerstone Properties, Incorporated 60,000 1,151,250
Cousins Properties, Incorporated 111,350 3,263,947
Crescent Real Estate Equities 150,570 5,928,694
Developers Diversified Realty 95,000 3,633,750
Duke Realty Investments, Incorporated 94,500 2,291,625
Equity Office Properties Trust, REIT 170,480 5,380,775
Equity Residential Properties Trust 130,912 6,619,238
Essex Property Trust 91,950 3,218,250
Excel Realty Trust, Incorporated 69,700 2,195,550
Federal Realty Investment Trust 53,100 1,367,325
FelCor Suite Hotels, Incorporated 105,800 3,755,900
First Industrial Realty Trust,
Incorporated 118,000 4,262,750
Franchise Finance Corporation
of America 51,800 1,398,600
Gables Residential Trust 23,300 643,663
General Growth Properties,
Incorporated 45,800 1,654,525
Glenborough Realty Trust, Incorporated 38,100 1,128,713
Glimcher Realty Trust 26,000 586,625
Highwoods Properties, Incorporated 121,800 4,529,437
Hospitality Properties Trust 39,100 1,285,413
Irvine Apartment Communities,
Incorporated 30,700 976,644
JDN Realty Corporation 95,200 3,082,100
Kilroy Realty Corporation 33,600 966,000
Kimco Realty Corporation 51,400 1,811,850
Liberty Property 61,200 1,748,025
Mack-California Realty Corporation 68,200 2,796,200
Macerich Company 116,300 3,314,550
Manufactured Home Communities,
Incorporated 110,400 2,980,800
Merry Land and Investment Company 51,100 1,168,912
Mid-America Apartment Communities,
Incorporated 24,500 699,781
The accompanying notes are an integral part of the financial statements.
104
<PAGE> 143
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
REAL ESTATE - CONTINUED
Mills Corporation 88,300 $2,163,350
New Plan Realty Trust 76,100 1,940,550
Patriot American Hospitality,
Incorporated 125,171 3,606,489
Post Properties,
Incorporated 36,291 1,474,322
Prentiss Properties Trust 34,100 952,669
Public Storage,
Incorporated 132,950 3,905,406
Reckson Associates Realty
Corporation 43,700 1,108,887
Regency Realty Corporation 29,700 822,319
Secuity Capital Atlantic,
Incorporated 59,700 1,261,162
Security Capital Industrial Trust 146,600 3,646,675
Security Capital Pacific Trust 116,950 2,836,037
Shurgard Storage Centers, Incorporated 38,400 1,113,600
Simon DeBartolo Group, Incorporated 155,360 5,078,330
Spieker Properties, Incorporated 65,400 2,804,025
Starwood Lodging Trust 60,800 3,518,800
Storage USA, Incorporated 73,700 2,943,394
Summit Properties, Incorporated 31,900 673,887
Sun Communities, Incorporated 20,700 743,906
Taubman Centers, Incorporated 68,200 886,600
Trammell Crow Company* 31,700 816,275
Trinet Corporation Realty Trust,
Incorporated 27,250 1,054,234
United Dominion Realty Trust,
Incorporated 122,729 1,710,535
Urban Shopping Centers, Incorporated 22,700 791,663
Vornado Realty Trust 117,250 5,503,422
Weeks Corporation 28,500 912,000
Weingarten Realty Investments 44,750 2,005,359
-----------
160,610,119
TOTAL COMMON STOCKS
(Cost: $147,362,725) $160,610,119
-----------
WARRANTS - 0.04%*
INSURANCE - 0.04%
Security Capital Group, Incorporated
(Expiration date 09/18/98;
strike price $28.00) 15,069 79,112
------
TOTAL WARRANTS (Cost: $0) $79,112
------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 12.47%
$23,007,430 Navigator Securities
Lending Trust, 5.74% $23,007,430
----------
REPURCHASE AGREEMENT - 0.40%
$739,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.85%, to be
repurchased at $739,240 on
01/02/98, collateralized by
$755,092 U.S. Treasury Notes,
6.125% due 07/31/00 (valued at
$773,682, including interest) $739,000
-------
TOTAL INVESTMENTS (Real Estate
Securities Trust) (Cost: $171,109,155) $184,435,661
===========
VALUE TRUST
Shares Value
------ -----
COMMON STOCKS - 81.22%
AEROSPACE - 0.82%
TRW, Incorporated 24,400 $1,302,350
AGRICULTURAL MACHINERY - 0.24%
Deere & Company 6,600 384,863
-------
AIR TRAVEL - 2.64%
AMR Corporation* 13,000 1,670,500
Delta Air Lines, Incorporated 21,300 2,534,700
---------
4,205,200
APPAREL & TEXTILES - 2.54%
Russell Corporation 31,600 839,375
Springs Industries, Incorporated 24,100 1,253,200
VF Corporation 42,200 1,938,563
---------
4,031,138
AUTO PARTS - 1.67%
Dana Corporation 28,200 1,339,500
Eaton Corporation 14,800 1,320,900
---------
2,660,400
AUTOMOBILES - 4.64%
Ford Motor Company 98,700 4,805,456
General Motors Corporation 42,400 2,570,500
7,375,956
BANKING - 7.19%
Bank of New York, Incorporated 14,000 809,375
Chase Manhattan Corporation 23,300 2,551,350
Citicorp 12,200 1,542,537
Crestar Financial Corporation 14,300 815,100
First Union Corporation 55,820 2,860,775
Mellon Bank Corporation 25,200 1,527,750
Republic New York Corporation 11,600 1,324,575
11,431,462
BUSINESS SERVICES - 0.82%
Olsten Corporation 87,200 1,308,000
---------
CHEMICALS - 5.74%
Cabot Corporation 29,900 825,987
The Dow Chemical Company 14,700 1,492,050
E. I. Du Pont De Nemours & Company 20,000 1,201,250
FMC Corporation* 15,700 1,056,806
Great Lakes Chemical Corporation 41,100 1,844,363
IMC Global, Incorporated 36,500 1,195,375
Rohm & Haas Company 15,700 1,503,275
---------
9,119,106
COMPUTERS & BUSINESS EQUIPMENT - 4.67%
International Business Machines
Corporation 38,300 4,004,744
Quantum Corporation* 34,400 690,150
The accompanying notes are an integral part of the financial statements.
105
<PAGE> 144
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
COMPUTERS & BUSINESS EQUIPMENT - CONTINUED
Seagate Technology* 38,100 $733,425
Stratus Computer,
Incorporated* 52,800 1,996,500
7,424,819
CONGLOMERATES - 2.05%
Aeroquip-Vickers, Incorporated 66,300 3,252,844
---------
CONSTRUCTION MATERIALS - 0.82%
Owens-Corning 38,000 1,296,750
---------
CONSTRUCTION & MINING EQUIPMENT - 1.91%
Caterpillar, Incorporated 18,900 917,831
Harnischfeger Industries, Incorporated 59,800 2,111,688
---------
3,029,519
DOMESTIC OIL - 2.80%
Atlantic Richfield Company 20,000 1,602,500
Phillips Petroleum Company 34,400 1,672,700
Ultramar Diamond Shamrock 37,100 1,182,563
---------
4,457,763
DRUGS & HEALTH CARE - 3.25%
Bergen Brunswig Corporation 14,700 619,238
Columbia/HCA Healthcare
Corporation 55,600 1,647,150
Mallinckrodt, Incorporated 33,500 1,273,000
Maxicare Health Plans, Incorporated* 30,100 327,337
Vencor, Incorporated* 24,300 593,831
Wellpoint Health Networks,
Incorporated* 16,600 701,350
---------
5,161,906
ELECTRIC UTILITIES - 2.57%
CINergy Corporation 16,300 624,494
DTE Energy Company 26,500 919,219
Duke Energy Company 13,639 755,260
Entergy Corporation 27,400 820,287
GPU, Incorporated 23,100 973,087
---------
4,092,347
ELECTRICAL EQUIPMENT - 0.78%
Arrow Electronics, Incorporated* 38,100 1,235,869
ELECTRONICS - 1.97%
Beckman Instruments, Incorporated 41,400 1,656,000
Raytheon Company 2,657 131,023
Tektronix, Incorporated 33,900 1,345,407
---------
3,132,430
FINANCIAL SERVICES - 3.40%
Case Corporation 49,700 3,003,744
Federal National Mortgage Association 16,400 935,825
Reliastar Financial Corporation 35,700 1,470,394
---------
5,409,963
FOOD & BEVERAGES - 1.43%
IBP, Incorporated 38,900 814,469
Universal Foods Corporation 34,500 1,457,625
---------
2,272,094
HOUSEHOLD PRODUCTS - 0.52%
Tupperware Corporation 29,800 830,675
-------
INDUSTRIAL MACHINERY - 4.56%
Cummins Engine, Incorporated 43,700 2,581,031
Kennametal, Incorporated 33,900 1,756,444
Parker Hannifin Corporation 36,050 1,653,794
Tecumseh Products Company 25,800 1,257,750
---------
7,249,019
INSURANCE - 9.02%
Allstate Corporation 22,500 2,044,687
American General
Corporation 23,000 1,243,437
Chubb Corporation 13,800 1,043,625
CIGNA Corporation 11,500 1,990,219
Everest Reinsurance Holdings 39,000 1,608,750
Foundation Health Systems,
Incorporated* 54,240 1,213,620
Hartford Financial Services
Group 17,400 1,627,987
Old Republic International Corporation 35,400 1,316,437
TIG Holdings, Incorporated 32,900 1,091,869
Transatlantic Holdings, Incorporated 16,300 1,165,450
----------
14,346,081
INTERNATIONAL OIL - 2.94%
Amoco Corporation 17,200 1,464,150
British Petroleum PLC, ADR 19,800 1,577,812
YPF Sociedad Anonima, ADR 47,800 1,634,163
---------
4,676,125
OFFICE FURNISHINGS & SUPPLIES - 0.36%
Standard Register 16,300 566,425
-------
PAPER - 0.41%
Westvaco Corporation 20,900 657,044
-------
PETROLEUM SERVICES - 0.84%
Repsol SA, ADR 31,300 1,332,206
---------
RAILROADS & EQUIPMENT - 0.74%
CSX Corporation 21,900 1,182,600
---------
RETAIL TRADE - 3.69%
Dillard's, Incorporated 29,800 1,050,450
Federal Department Stores,
Incorporated* 36,000 1,550,250
Sears, Roebuck & Company 43,000 1,945,750
Toys R Us, Incorporated* 42,000 1,320,375
---------
5,866,825
STEEL - 0.67%
Inland Steel Industries, Incorporated 39,800 681,575
National Steel Corporation* 33,600 388,500
---------
1,070,075
TIRES & RUBBER - 1.90%
The Goodyear Tire & Rubber Company 47,500 3,022,187
---------
TOBACCO - 3.62%
Philip Morris Companies, Incorporated 70,900 3,212,656
RJR Nabisco Holdings Corporation 68,000 2,550,000
---------
5,762,656
TOTAL COMMON STOCKS
(Cost: $123,826,223) $129,146,697
-----------
The accompanying notes are an integral part of the financial statements.
106
<PAGE> 145
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 7.88%
$12,529,476 Navigator Securities
Lending Trust, 5.74% $12,529,476
----------
REPURCHASE AGREEMENT - 10.90%
$17,338,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.00%, to be
repurchased at $17,342,816 on
01/02/98, collateralized by
$17,689,011 U.S. Treasury Bonds,
8.125% due 05/15/21 (valued at
$17,833,400, (including interest) $17,338,000
----------
TOTAL INVESTMENTS
(Value Trust) (Cost: $153,693,699) $159,014,173
===========
INTERNATIONAL GROWTH AND INCOME TRUST
Shares Value
------ -----
COMMON STOCKS - 66.72%
AEROSPACE - 1.27%
CSF Thomson 33,800 $1,065,359
Lucas Varity PLC, ADS 517,300 1,826,780
---------
2,892,139
AIR TRAVEL - 1.46%
British Airways PLC, ADS 107,000 984,186
Deutsche Lufthansa AG 65,300 1,252,314
Singapore Airlines, Ltd. 166,000 1,083,358
---------
3,319,858
AUTO PARTS - 0.46%
Autoliv, Incorporated, ADR 15,900 517,658
Qingling Motors Company 1,070,300 524,860
---------
1,042,518
AUTOMOBILES - 1.39%
Nissan Motor Company, Ltd. 124,000 512,828
Tata Engineering and Locomotive
Company, Ltd., GDR 42,200 318,846
Toyota Motor Corporation 81,000 2,320,135
---------
3,151,809
BANKING - 10.27%
Allied Irish Banks 250,900 2,428,319
Banco Bilbao Vizcaya, ADS 57,900 1,873,626
Banco Santander-Chile, ADR 55,700 786,763
Bangkok Bank 161,100 401,495
Bank of East Asia 120 281
Bank of Tokyo Mitsubishi, ADS 63,000 868,500
Deutsche Bank AG 29,380 2,074,132
Dresdner Bank AG 8,270 381,561
Housing & Commerical Bank of
Korea, ADR 142,500 961,875
HSBC Holdings - HKD 14,400 354,936
HSBC Holdings - P 54,700 1,419,547
Istituto Mobiliare Italiano SPA 121,000 1,436,405
Lloyds TSB Group PLC 159,900 2,080,233
The Mitsui Trust & Banking
Company, Ltd. 293,000 567,734
National Australia Bank, Ltd. 158,200 2,209,579
Royal Bank of Scotland Group PLC 201,800 2,572,732
Union Bank of Switzerland/
Schweizerische Bankgesellschaft 780 1,127,402
United Overseas Bank 203,000 1,126,105
Yapi ve Kredi Bankasi AS 18,050,860 688,067
----------
23,359,292
BROADCASTING - 0.28%
Central European Media
Enterprises, Ltd.* 25,200 636,300
-------
BUILDING MATERIALS & CONSTRUCTION - 0.19%
ACS, Actividades de Construccion y
Servicios SA 12,700 307,601
Gamuda BHD 222,200 123,397
-------
430,998
BUSINESS SERVICES - 2.06%
Eaux (Cie Generale Des) 13,569 1,893,821
Keppel Telecom & Transport 658,000 421,619
Toppan Printing Company, Ltd. 68,000 885,349
Wessex Water PLC 175,100 1,475,397
---------
4,676,186
CHEMICALS - 1.43%
Allied Colloids Group PLC 236,242 644,126
Bayer AG 17,060 637,278
Fauji Fertilizer Company, Ltd. 416,600 797,586
Henkel 8,890 499,119
Mitsubishi Rayon Company, Ltd. 121,000 296,546
SGL Carbon AG 2,076 267,729
Shin-Etsu Chemical Company 6,000 114,421
---------
3,256,805
COAL - 0.14%
Banpu Public Company, Ltd. 81,100 325,074
-------
COMPUTERS & BUSINESS EQUIPMENT - 1.24%
Fujitsu, Ltd. 160,000 1,715,555
Ricoh Company, Ltd. 89,000 1,104,235
---------
2,819,790
CONGLOMERATES - 0.66%
CSR, Ltd. 214,100 725,606
Hutchison Whampoa 43,000 269,686
Tomkins PLC, ADS 108,600 513,722
---------
1,509,014
CONSTRUCTION & MINING EQUIPMENT - 0.06%
Nishimatsu Construction 40,000 125,603
-------
CONSTRUCTION MATERIALS - 0.61%
CRH 34,200 400,124
Siam Cement Company 73,300 578,484
Tostem Company 38,000 407,444
---------
1,386,052
The accompanying notes are an integral part of the financial statements.
107
<PAGE> 146
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
CRUDE PETROLEUM & NATURAL GAS - 1.49%
Elf Aquitaine 10,097 $1,174,363
ENI SPA 390,000 2,211,249
---------
3,385,612
DRUGS & HEALTH CARE - 4.57%
Elan PLC, ADR 3,900 199,631
Glaxo Wellcome PLC 86,500 2,062,208
Ranbaxy Laboratories, Ltd., GDR 24,400 616,100
Roche Holding AG 70 694,874
Sanofi SA 12,280 1,367,052
Schering AG 4,880 470,652
Takeda Chemical Industries, Ltd. 42,000 1,196,599
Wockhardt, Ltd., ADR 11,500 64,688
Yamanouchi Pharmaceutical
Company, Ltd. 64,000 1,372,444
Zeneca Group PLC 66,500 2,355,519
----------
10,399,767
ELECTRIC UTILITIES - 3.49%
Chilgener SA, ADR 25,200 617,400
Companhia Energetica de Minas
Gerais, ADR 29,100 1,264,366
Empresa Nacional Electricidad SA, ADR 69,300 1,225,744
The Hub Power Company, Ltd., GDR* 19,800 613,800
Iberdrola SA 148,700 1,956,964
National Grid Group PLC 10 47
VEBA AG 33,300 2,267,573
---------
7,945,894
ELECTRICAL EQUIPMENT - 1.20%
Elektrim Spolka Akcyjina SA 28,169 272,500
Hitachi, Ltd. 91,000 648,158
Siemens AG 30,560 1,809,189
---------
2,729,847
ELECTRONICS - 1.85%
Fanuc, Ltd. 31,000 1,172,857
Nissei Sangyo Company 29,000 237,650
Racal Electronics 320,000 1,403,352
Samsung Electronics, Ltd., ADR 31,818 501,134
TDK Corporation 12,000 904,342
---------
4,219,335
FINANCIAL SERVICES - 1.99%
Brierley Investment, Ltd. 1,002,000 715,628
Compagnie Financiere de Paribas 17,310 1,504,217
Koc Holdings 4,964,000 1,161,660
Nichiei Company, Ltd. (Kyoto) 5,000 532,282
Nomura Securities 46,000 613,004
---------
4,526,791
FOOD & BEVERAGES - 2.27%
Diageo PLC 135,000 1,235,078
Greencore Group PLC 72,600 340,994
Lion Nathan, Ltd. 714,200 1,600,743
Molinos Rio de la Plata SA 195,410 469,073
Nestle SA 800 1,198,467
Okocimskie Zaklady Piwowarskie SA 47,700 324,766
---------
5,169,121
FOREST PRODUCTS - 0.41%
Carter Holt Harvey 610,000 942,163
-------
HOMEBUILDERS - 0.06%
Bilfinger & Berger
Bauaktiengesellschaft AG 4,600 142,683
-------
HOUSEHOLD APPLIANCES - 0.87%
Guangdong Kelon Elec Holdings 470,000 482,191
Philips Electronics NV 7,950 476,769
Sony Corporation 11,600 1,030,558
---------
1,989,518
HOUSEHOLD PRODUCTS - 0.97%
Unilever 256,000 2,202,054
---------
INDUSTRIAL MACHINERY - 1.11%
Daiken Corporation 109,000 263,797
Ebara Corporation 77,000 813,816
Hindalco Industries, Ltd., ADR 25,800 488,905
Ishihara Sangyo Kaisha 69,000 76,626
Reliance Industries, ADR 108,000 891,000
---------
2,534,144
INSURANCE - 4.32%
Axa-UAP 9,000 696,403
Irish Life PLC 200,000 1,147,179
Istituto Nazionale della
Assicurazioni 1,462,000 2,962,843
Munchener Ruckversicherungs AG 7,082 2,669,111
Prudential Corporation 89,000 1,083,782
Royal & Sun Alliance Insurance
Group PLC 71,000 714,865
Tokio Marine & Fire Insurance Company 48,000 544,076
---------
9,818,259
INTERNATIONAL OIL - 2.04%
Pakistan State Oil Company, Ltd.* 102,362 871,122
The Shell Transport and Trading
Company PLC 339,400 2,380,373
YPF Sociedad Anonima, ADR 40,610 1,388,354
---------
4,639,849
LEISURE TIME - 1.25%
Compass Group 231,700 2,850,449
---------
NON-FERROUS METALS - 0.48%
Billiton PLC* 137,000 351,035
WMC, Ltd. 210,800 735,031
---------
1,086,066
PAPER - 0.83%
Fletcher Challenge, Ltd. 514,700 672,436
Jefferson Smurfit Group PLC 432,400 1,218,561
---------
1,890,997
PETROLEUM SERVICES - 1.45%
Broken Hill Proprietary Company, Ltd. 163,800 1,521,282
Petroleo Brasileiro S/A-Petrobras, ADR 25,000 584,665
Repsol SA, ADS 13,700 584,509
Zhenhai Refining and Chemical
Company, Ltd. 1,467,300 610,665
---------
3,301,121
The accompanying notes are an integral part of the financial statements.
108
<PAGE> 147
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
PHOTOGRAPHY - 0.65%
Canon Sales Company, Incorporated 23,000 $262,465
Fuji Photo Film Company 32,000 1,225,396
---------
1,487,861
PUBLISHING - 0.51%
Hurriyet Gazetecilik ve Matbaacilik 4,901,000 922,263
Singapore Press Holdings, Ltd. 19,000 237,852
---------
1,160,115
REAL ESTATE - 1.27%
City Developments 137,000 633,996
Mepc PLC 111,000 926,173
Mitsubishi Estate Company, Ltd. 96,000 1,044,037
Sun Hung Kai Properties 42,000 292,683
---------
2,896,889
RETAIL GROCERY - 1.12%
Ito-Yokado Company, Ltd. 16,000 814,889
J. Sainsbury PLC 205,805 1,734,118
---------
2,549,007
RETAIL TRADE - 1.55%
Carrefour SA 2,619 1,366,397
The Great Universal Stores PLC 112,000 1,410,973
JD Group, Ltd. 906 5,539
Mitsubishi Corporation 93,000 733,629
---------
3,516,538
SHIPBUILDING - 0.08%
Sembawang Maritime, Ltd. 123,000 180,979
-------
SOFTWARE - 0.84%
SAP AG 6,280 1,907,791
---------
STEEL - 0.72%
Nippon Steel Corporation 310,000 458,222
Rautaruukki OY 42,000 339,023
Tokyo Steel Manufacturing
Company, Ltd. 46,000 155,365
Unisor SA 47,315 683,172
---------
1,635,782
TELECOMMUNICATION SERVICES - 3.20%
France Telecom SA* 15,730 570,551
Telecom Argentina Stet France, ADR 30,430 1,087,873
Telecom Corporation of New Zealand 369,000 1,789,070
Telecom Italia SPA 6 38
Telecom Italia SPA-RNC 670,000 2,954,211
Telefonica del Peru SA, ADR 27,800 648,087
Telstra Corporation* 114,700 242,208
---------
7,292,038
TELEPHONE - 2.70%
Nippon Telegraph & Telephone
Corporation 162 1,389,599
Philippine Long Distance Telephone
Company, ADR 13,616 306,360
Telecomunicacoes Brasileiras S/A-
Telebras, ADR 18,200 2,119,162
VodaFone Group 323,000 2,334,321
---------
6,149,442
TIRES & RUBBER - 1.03%
Bridgestone Corporation 66,000 1,430,497
Continental AG 41,800 922,460
---------
2,352,957
TOBACCO - 0.45%
ITC, Ltd., ADR 29,100 574,725
Japan Tobacco, Incorporated 64 453,887
---------
1,028,612
TRUCKING & FREIGHT - 0.43%
Mayne Nickless, Ltd. 141,560 748,242
Osprey Maritime, Ltd. 286,000 229,072
-------
977,314
TOTAL COMMON STOCKS
(Cost: $153,741,248) $151,840,433
-----------
PREFERRED STOCKS - 1.29%
AUTOMOBILES - 0.10%
Volkswagen AG 540 231,735
-------
BROADCASTING - 0.82%
News Corporation 378,000 1,870,869
---------
MISCELLANEOUS - 0.37%
WBK STRYPES Trust 24,900 834,150
-------
TOTAL PREFERRED STOCKS
(Cost: $2,632,321) $2,936,754
---------
WARRANTS - 0.07%*
CHEMICALS - 0.07%
Shin-Etsu Chemical (Expiration date
08/01/11; strike price Y 1,917) 125 171,875
-------
TOTAL WARRANTS (Cost: $162,500) $171,875
-------
Principal
Amount Value
------ -----
FOREIGN GOVERNMENT OBLIGATIONS - 15.14%
COMMONWEALTH OF AUSTRALIA - 3.07%
New South Wales Treasury,
6.50% due 05/01/06 AUD 10,500,000 $6,997,349
---------
GOVERNMENT OF CANADA - 1.62%
7.00% due 12/01/06 CAD 4,800,000 3,682,368
---------
KINGDOM OF DENMARK - 3.41%
8.00% due 05/15/03 DKK 854,000 140,728
8.00% due 03/15/06 45,000,000 7,608,474
---------
7,749,202
The accompanying notes are an integral part of the financial statements.
109
<PAGE> 148
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
REPUBLIC OF ITALY - 0.81%
8.50% due 08/01/04 ITL 2,800,000,000 $1,842,631
---------
GOVERNMENT OF SPAIN - 0.64%
7.90% due 02/28/02 ESP 200,000,000 1,453,233
---------
UNITED KINGDOM TREASURY - 5.59%
8.00% due 09/27/13 P 3,110,000 5,941,446
8.50% due 07/16/07 2,730,000 5,146,818
8.75% due 08/25/17 780,000 1,632,264
----------
12,720,528
TOTAL FOREIGN GOVERNMENT
OBLIGATIONS (Cost: $34,727,475) $34,445,311
----------
CORPORATE BONDS - 1.29%
Athena Neuroscience, Incorporated,
4.75% due 11/15/04 $920,000 916,550
Mesta-Serla OY,
4.375% due 10/15/02 1,109,000 1,025,825
Nykredit,
6.00% due 10/01/06 DKK 6,965,000 990,585
-------
TOTAL CORPORATE BONDS
(Cost: $2,956,888) $2,932,960
---------
CONVERTIBLE BONDS - 1.03%
BTM Cayman Finance,
4.25% due 03/31/03 Y 130,000,000 $1,090,220
Elektrim SA,
2.00% due 05/30/04 DEM 540,000 284,416
MIT Capital Cayman, Ltd.,
0.50% due 10/01/07 Y 260,000,000 970,743
-------
TOTAL CONVERTIBLE BONDS
(Cost: $4,126,671) $2,345,379
---------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 12.56%
$28,577,353 Navigator Securities
Lending Trust, 5.74% $28,577,353
----------
REPURCHASE AGREEMENT - 1.90%
$4,325,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.00%, to be
repurchased at $4,326,201 on
01/02/98, collateralized by
$4,416,368 U.S. Treasury Bonds,
6.875% due 08/15/25 (valued at
$4,516,657, including interest) $4,325,000
---------
TOTAL INVESTMENTS (International
Growth & Income Trust) (Cost: $231,249,456) $227,575,065
===========
GROWTH AND INCOME TRUST
Shares Value
------ -----
COMMON STOCKS - 93.08%
AEROSPACE - 3.02%
Boeing Company 400,000 $19,575,000
Lockheed Martin Corporation 175,000 17,237,500
United Technologies Corporation 185,000 13,470,312
----------
50,282,812
AGRICULTURAL MACHINERY - 0.87%
Deere & Company 250,000 14,578,125
----------
AIR TRAVEL - 1.44%
Southwest Airlines Company 975,000 24,009,375
----------
ALUMINUM - 0.65%
Aluminum Company of America 155,000 10,908,125
----------
AUTOMOBILES - 0.29%
General Motors Corporation 130,000 4,801,875
---------
BANKING - 6.89%
The Chase Manhattan Corporation 90,000 9,855,000
Citicorp 250,000 31,609,375
Crestar Financial Corporation 180,000 10,260,000
First Union Corporation 600,000 30,750,000
U.S. Bancorp 289,000 32,349,938
-----------
114,824,313
BUSINESS SERVICES - 1.60%
Automatic Data Processing,
Incorporated 195,000 11,968,125
First Data Corporation 500,000 14,625,000
----------
26,593,125
CHEMICALS - 2.36%
The Dow Chemical Company 95,000 9,642,500
E.I. Du Pont De Nemours & Company 255,000 15,315,937
Zeneca Group PLC, ADR 133,300 14,396,400
----------
39,354,837
COMPUTERS & BUSINESS EQUIPMENT - 5.32%
3Com Corporation* 88,900 3,105,944
Cisco Systems, Incorporated* 292,500 16,306,875
EMC Corporation* 260,000 7,133,750
Hewlett-Packard Company 255,000 15,937,500
International Business Machines
Corporation 300,000 31,368,750
Xerox Corporation 200,000 14,762,500
----------
88,615,319
CONSTRUCTION & MINING EQUIPMENT - 0.87%
Caterpillar, Incorporated 219,500 10,659,469
Foster Wheeler Corporation 143,200 3,875,350
----------
14,534,819
CONTAINERS & GLASS - 0.45%
Crown Cork & Seal, Incorporated 150,000 7,518,750
---------
DOMESTIC OIL - 0.86%
Unocal Corporation 370,000 14,360,625
----------
The accompanying notes are an integral part of the financial statements.
110
<PAGE> 149
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
DRUGS & HEALTH CARE - 10.07%
Abbott Laboratories 320,000 $20,980,000
American Home Products Corporation 90,000 6,885,000
Bristol-Myers Squibb Company 180,000 17,032,500
Columbia/HCA Healthcare Corporation 360,000 10,665,000
Johnson & Johnson 214,000 14,097,250
Merck & Company, Incorporated 150,000 15,937,500
Pfizer, Incorporated 460,000 34,298,750
Pharmacia & Upjohn, Incorporated 700,000 25,637,500
Tenet Healthcare Corporation* 125,700 4,163,813
Warner-Lambert Company 146,000 18,104,000
-----------
167,801,313
ELECTRIC UTILITIES - 2.58%
DPL, Incorporated 445,000 12,793,750
Duke Energy Company 208,000 11,518,000
New England Electric System 195,000 8,336,250
Texas Utilities Company 250,000 10,390,625
----------
43,038,625
ELECTRICAL EQUIPMENT - 3.08%
General Electric Company 700,000 51,362,500
----------
ELECTRONICS - 3.43%
AMP, Incorporated 270,000 11,340,000
Analog Devices, Incorporated* 245,000 6,783,438
Intel Corporation 290,000 20,372,500
Motorola, Incorporated 270,000 15,406,875
Raytheon Company 1 49
Texas Instruments, Incorporated 74,000 3,330,000
----------
57,232,862
FINANCIAL SERVICES - 6.72%
American Express Company 330,000 29,452,500
Federal National Mortgage Association 550,000 31,384,375
Morgan Stanley Dean Witter 250,000 14,781,250
Travelers Group, Incorporated 675,000 36,365,625
-----------
111,983,750
FOOD & BEVERAGES - 3.98%
General Mills, Incorporated 170,000 12,176,250
H.J. Heinz Company 160,000 8,130,000
Nabisco Holdings Corporation 190,000 9,203,125
PepsiCo, Incorporated 300,000 10,931,250
Sara Lee Corporation 460,000 25,903,750
----------
66,344,375
GAS & PIPELINE UTILITIES - 0.82%
KN Energy, Incorporated 100,000 5,400,000
National Fuel Gas Company 100,000 4,868,750
Peoples Energy Corporation 85,600 3,370,500
----------
13,639,250
HOTELS & RESTAURANTS - 1.02%
McDonalds Corporation 355,000 16,951,250
----------
HOUSEHOLD PRODUCTS - 2.42%
Colgate-Palmolive Company 150,000 11,025,000
Gillette Company 70,600 7,090,887
Procter & Gamble Company 278,000 22,187,875
----------
40,303,762
INSURANCE - 5.46%
ACE, Ltd. 242,500 23,401,250
Allstate Corporation 330,000 29,988,750
American International Group,
Incorporated 189,000 20,553,750
Marsh & McLennan Companies,
Incorporated 230,000 17,149,375
----------
91,093,125
INTERNATIONAL OIL - 5.49%
Amoco Corporation 200,000 17,025,000
Chevron Corporation 330,000 25,410,000
Exxon Corporation 360,000 22,027,500
Royal Dutch Petroleum Company, ADR 500,000 27,093,750
----------
91,556,250
LEISURE TIME - 0.39%
The Walt Disney Company 66,000 6,538,125
---------
LIQUOR - 0.73%
Anheuser-Busch Companies,
Incorporated 276,000 12,144,000
----------
NEWSPAPERS - 1.63%
Gannett, Incorporated 440,000 27,197,500
----------
PAPER - 2.62%
International Paper Company 230,000 9,918,750
Kimberly-Clark Corporation 385,000 18,985,312
Minnesota Mining & Manufacturing
Company 180,000 14,771,250
----------
43,675,312
PETROLEUM SERVICES - 2.05%
Diamond Offshore Drilling, Incorporated 170,000 8,181,250
Schlumberger, Ltd. 323,400 26,033,700
----------
34,214,950
RAILROAD & EQUIPMENT - 0.86%
Union Pacific Corporation 230,000 14,360,625
----------
REAL ESTATE - 0.28%
Security Capital Pacific Trust 190,000 4,607,500
---------
RETAIL TRADE - 4.15%
Dayton Hudson Corporation 340,000 22,950,000
Gap, Incorporated 300,000 10,631,250
May Department Stores, Incorporated 205,000 10,800,938
Wal-Mart Stores, Incorporated 630,000 24,845,625
----------
69,227,813
SOFTWARE - 1.94%
Microsoft Corporation* 250,000 32,312,500
----------
TELECOMMUNICATION SERVICES - 1.01%
Cox Communications, Incorporated* 210,000 8,413,125
Lucent Technologies, Incorporated 105,000 8,386,875
----------
16,800,000
TELEPHONE - 5.57%
Bell Atlantic Corporation 283,699 25,816,609
BellSouth Corporation 170,000 9,573,125
The accompanying notes are an integral part of the financial statements.
111
<PAGE> 150
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
TELEPHONE - CONTINUED
SBC Communications, Incorporated 390,000 $28,567,500
U.S. West, Incorporated 350,000 15,793,750
WorldCom, Incorporated* 435,000 13,158,750
----------
92,909,734
TIRES & RUBBER - 0.67%
Goodyear Tire and Rubber Company 175,000 11,134,375
TOBACCO - 1.49%
Philip Morris Companies, Incorporated 550,000 24,921,875
TOTAL COMMON STOCKS
(Cost: $1,084,612,832) $1,551,733,471
-------------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 3.95%
$65,892,173 Navigator Securities
Lending Trust, 5.74% $65,892,173
----------
REPURCHASE AGREEMENT - 2.97%
$49,462,000 Repurchase Agreement with Lehman
Brothers Incorporated dated
12/31/97 at 6.57%, to be
repurchased at $49,480,054 on
01/02/98, collateralized by
$52,139,501 U.S. Treasury Strips,
zero coupon due 08/15/17 (valued
at $52,139,501, including interest) $49,462,000
----------
TOTAL INVESTMENTS (Growth and
Income Trust) (Cost: $1,199,967,005) $1,667,087,644
=============
EQUITY-INCOME TRUST
Shares Value
------ -----
COMMON STOCKS - 88.65%
AEROSPACE - 0.12%
AlliedSignal, Incorporated 31,300 $1,218,744
---------
ALUMINUM - 0.47%
Reynolds Metals Company 76,500 4,590,000
---------
APPAREL & TEXTILES - 0.06%
Unifi, Incorporated 15,000 610,313
-------
AUTO PARTS - 1.11%
Echlin, Incorporated 120,500 4,360,594
Genuine Parts Company 192,150 6,521,091
----------
10,881,685
AUTOMBILES - 0.61%
General Motors Corporation 98,100 5,947,313
---------
BANKING - 8.87%
Banc One Corporation 143,000 7,766,688
BankBoston Corporation 64,000 6,012,000
Bankers Trust New York Corporation 72,200 8,117,987
The Chase Manhattan Corporation 75,900 $8,311,050
First Union Corporation 109,610 5,617,512
Fleet Financial Group, Incorporated 92,500 6,931,719
Mellon Bank Corporation 293,000 17,763,125
Mercantile Bankshares Corporation 96,150 3,761,869
J.P. Morgan & Company, Incorporated 67,200 7,585,200
National City Corporation 80,000 5,260,000
PNC Bank Corporation 72,400 4,131,325
Wells Fargo & Company 17,100 5,804,381
----------
87,062,856
BUSINESS SERVICES - 1.55%
H & R Block, Incorporated 152,000 6,811,500
Deluxe Corporation 61,400 2,118,300
R. R. Donnelley & Sons Company 168,600 6,280,350
----------
15,210,150
CHEMICALS - 6.77%
The Dow Chemical Company 145,600 14,778,400
E.I. Du Pont De Nemours & Company 150,200 9,021,388
Eastman Chemical Company 55,000 3,275,937
Great Lakes Chemical Corporation 165,700 7,435,788
Imperial Chemical Industries PLC, ADR 74,100 4,811,869
Lubrizol Corporation 96,900 3,573,187
Nalco Chemical Company 102,000 4,035,375
Olin Corporation 150,900 7,073,437
PPG Industries, Incorporated 77,800 4,444,325
Witco Corporation 194,700 7,946,194
----------
66,395,900
CONGLOMERATES - 1.25%
Fortune Brands, Incorporated 123,400 4,573,513
Lonrho PLC 990,500 1,529,282
Tomkins 1,298,500 6,142,424
----------
12,245,219
CONSTRUCTION MATERIALS - 0.43%
Armstrong World Industries,
Incorporated 56,200 4,200,950
---------
COSMETICS & TOILETRIES - 0.97%
International Flavours & Fragrances,
Incorporated 184,900 9,522,350
---------
CRUDE PETROLEUM & NATURAL GAS - 1.04%
Enron Corporation 112,000 4,655,000
Occidental Petroleum Corporation 188,800 5,534,200
----------
10,189,200
DOMESTIC OIL - 3.04%
Amerada Hess Corporation 113,700 6,239,288
Atlantic Richfield Company 170,200 13,637,275
Phillips Petroleum Company 98,000 4,765,250
USX-Marathon Group 152,000 5,130,000
----------
29,771,813
The accompanying notes are an integral part of the financial statements.
112
<PAGE> 151
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
DRUGS & HEALTH CARE - 5.41%
Abbott Laboratories 84,600 $5,546,588
American Home Products Corporation 160,300 12,262,950
Amgen, Incorporated 57,000 3,085,125
C.R. Bard, Incorporated 91,000 2,849,437
Bausch & Lomb, Incorporated 115,300 4,568,762
Baxter International, Incorporated 68,500 3,454,969
Pharmacia & Upjohn, Incorporated 287,100 10,515,038
Smith & Nephew PLC 1,267,200 3,746,477
United States Surgical Corporation 241,700 7,084,831
----------
53,114,177
ELECTRIC UTILITIES - 8.08%
Baltimore Gas & Electric Company 92,100 3,137,156
Central & South West Corporation 98,000 2,652,125
Dominion Resources, Incorporated 120,300 5,120,269
DQE, Incorporated 128,200 4,503,025
Duke Energy Company 150,800 8,350,550
Entergy Corporation 145,900 4,367,881
FirstEnergy Corporation* 240,775 6,982,475
GPU, Incorporated 58,300 2,455,887
Houston Industries, Incorporated 201,000 5,364,188
PacifiCorp 162,900 4,449,206
PECO Energy Company 191,800 4,651,150
PG & E Corporation 109,600 3,335,950
Public Service Enterprise Group,
Incorporated 97,700 3,095,869
Southern Company 274,900 7,113,038
TECO Energy, Incorporated 118,000 3,318,750
Unicom Corporation 209,400 6,439,050
Western Resources, Incorporated 92,000 3,956,000
----------
79,292,569
ELECTRICAL EQUIPMENT - 1.91%
Cooper Industries, Incorporated 92,500 4,532,500
General Electric Company 127,000 9,318,625
Hubbell, Incorporated 99,000 4,881,937
----------
18,733,062
ELECTRONICS - 0.64%
AMP, Incorporated 143,100 6,010,200
Raytheon Company 6,255 308,450
---------
6,318,650
FINANCIAL SERVICES - 2.05%
American Express Company 53,300 4,757,025
Federal National Mortgage Association 156,500 8,930,281
Travelers Group, Incorporated 119,049 6,413,765
----------
20,101,071
FOOD & BEVERAGES - 4.14%
Cadbury Schweppes PLC 270,700 2,732,130
General Mills, Incorporated 114,200 8,179,575
H.J. Heinz Company 123,200 6,260,100
McCormick & Company, Incorporated 226,000 6,328,000
Quaker Oats Company 159,700 8,424,175
Sara Lee Corporation 70,000 3,941,875
Unilever NV 75,400 4,707,788
----------
40,573,643
FOREST PRODUCTS - 0.39%
Georgia-Pacific Corporation 45,600 2,770,200
Georgia-Pacific Corporation
(Timber Group)* 45,600 1,034,550
---------
3,804,750
HOMEBUILDERS - 0.15%
Rouse Company 45,600 1,493,400
---------
HOTELS & RESTAURANTS - 0.59%
Hilton Hotels Corporation 90,500 2,692,375
ITT Corporation* 37,700 3,124,387
---------
5,816,762
HOUSEHOLD APPLIANCES - 0.64%
Whirlpool Corporation 114,700 6,308,500
---------
HOTELS & RESTAURANTS - 0.52%
Colgate-Palmolive Company 15,000 1,102,500
Rubbermaid, Incorporated 17,600 440,000
Tupperware Corporation 126,200 3,517,825
---------
5,060,325
INDUSTRIAL MACHINERY - 0.50%
Pall Corporation 236,000 4,882,250
---------
INSURANCE - 4.54%
American General Corporation 147,800 7,990,438
Exel, Ltd. 89,300 5,659,387
Hilb, Rogal & Hamilton Company 27,500 531,094
Lincoln National Corporation 58,000 4,531,250
SAFECO Corporation 103,600 5,050,500
St. Paul Companies, Incorporated 101,600 8,337,550
Transamerica Corporation 55,300 5,889,450
USF & G Corporation 169,000 3,728,562
Willis Corroon Group PLC, ADR 230,820 2,841,971
----------
44,560,202
INTERNATIONAL OIL - 6.07%
Amoco Corporation 94,500 8,044,312
The British Petroleum Company
PLC, ADR 76,000 6,056,250
Chevron Corporation 105,700 8,138,900
Exxon Corporation 179,400 10,977,038
Mobil Corporation 131,900 9,521,531
Royal Dutch Petroleum Company, ADR 141,600 7,672,950
Texaco, Incorporated 168,600 9,167,625
----------
59,578,606
LIQUOR - 1.56%
Anheuser-Busch Companies,
Incorporated 224,300 9,869,200
Brown-Forman Corporation, Class B 98,300 5,431,075
----------
15,300,275
MINING - 0.51%
Newmont Mining Corporation 168,700 4,955,562
---------
The accompanying notes are an integral part of the financial statements.
113
<PAGE> 152
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
NEWSPAPERS - 1.47%
Dow Jones & Company, Incorporated 121,800 $6,539,137
Knight-Ridder, Incorporated 151,400 7,872,800
----------
14,411,937
NON-FERROUS METALS - 0.17%
Inco, Ltd. 97,000 1,649,000
---------
PAPER - 2.36%
Consolidated Papers, Incorporated 94,600 5,049,275
International Paper Company 110,700 4,773,938
Kimberly-Clark Company 37,000 1,824,562
Minnesota Mining & Manufacturing
Company 31,600 2,593,175
Union Camp Corporation 165,200 8,869,175
----------
23,110,125
PETROLEUM SERVICES - 0.39%
Repsol SA, ADR 90,000 3,830,625
---------
PHOTOGRAPHY - 0.81%
Eastman Kodak Company 131,000 7,966,438
---------
POLLUTION CONTROL - 0.46%
Waste Management, Incorporated 165,000 4,537,500
---------
PUBLISHING - 1.26%
Dun & Bradstreet Corporation 144,200 4,461,188
McGraw-Hill Companies, Incorporated 63,000 4,662,000
The Reader's Digest Association,
Incorporated 136,900 3,234,262
----------
12,357,450
RAILROADS & EQUIPMENT - 2.89%
Burlington Northern Santa Fe
Corporation 64,300 5,975,881
Gatx Corporation 37,500 2,721,094
Norfolk Southern Corporation 256,900 7,915,731
Union Pacific Corporation 188,100 11,744,494
----------
28,357,200
REAL ESTATE - 1.20%
Security Capital Pacific Trust 56,500 1,370,125
Simon DeBartolo Group, Incorporated 238,700 7,802,506
Weingarten Realty Investors 57,700 2,585,681
----------
11,758,312
RETAIL TRADE - 1.41%
May Department Stores Company 77,600 4,088,550
J.C. Penney, Incorporated 162,300 9,788,719
----------
13,877,269
STEEL - 0.34%
USX-U.S. Steel Group 108,200 3,381,250
---------
TELEPHONE - 9.08%
ALLTEL Corporation 309,100 12,692,419
American Telephone & Telegraph
Corporation 261,900 17,878,875
BCE, Incorporated 170,600 5,683,113
Bell Altantic Corporation 90,000 8,190,000
BellSouth Corporation 125,700 7,078,481
Frontier Corporation 156,000 3,753,750
GTE Corporation 196,500 10,267,125
SBC Communications, Incorporated 151,229 11,077,524
Southern New England
Telecommunications Corporation 92,900 4,674,031
Sprint Corporation 75,000 4,396,875
U.S. West, Incorporated 75,900 3,424,988
----------
89,117,181
TOBACCO - 2.61%
Philip Morris Companies, Incorporated 245,300 11,115,156
RJR Nabisco Holdings Corporation 122,900 4,608,750
UST, Incorporated 266,600 9,847,538
----------
25,571,444
TRUCKING & FREIGHT - 0.21%
Alexander & Baldwin, Incorporated 76,400 2,086,675
TOTAL COMMON STOCKS
(Cost: $701,127,169) $869,752,702
-----------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENTS - 11.30%
$4,665,000 Bank of New York,
5.83% due 01/16/98 $4,653,668
32,000,000 Beta Finance, Incorporated,
5.68% due 02/19/98 31,752,604
4,375,000 Caisse Des Depots Et Consign,
28,300,000 5.85% due 01/15/98 4,365,047
CIESCO LP, 5.65% due 02/20/98 28,077,924
1,000,000 Federal Home Loan Bank,
4.75% due 01/02/98 999,868
41,049,758 Navigator Securities
Lending Trust, 5.74% 41,049,758
-----------
110,898,869
REPURCHASE AGREEMENT - 0.05%
$461,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/97 at 5.00%, to be
repurchased at $461,128 on
01/02/98, collateralized by
$470,231 U.S. Treasury Strips,
5.00% due 02/15/99 (valued at
$478,950, including interest) $461,000
-------
TOTAL INVESTMENTS
(Equity-Income Trust) (Cost: $812,487,038) $981,112,571
===========
The accompanying notes are an integral part of the financial statements.
114
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
BALANCED TRUST
Shares Value
------ -----
COMMON STOCKS - 56.87%
BANKING - 1.60%
BankAmerica Corporation 22,500 $1,642,500
NationsBank Corporation 21,200 1,289,225
---------
2,931,725
CHEMICALS - 2.28%
ARCO Chemical Company 31,800 1,484,663
E.I. Du Pont De Nemours & Company 13,900 834,867
Imperial Chemical Industries PLC, ADR 28,900 1,876,695
---------
4,196,225
COMPUTERS & BUSINESS EQUIPMENT - 0.94%
Hewlett-Packard Company 13,100 818,750
International Business Machines
Corporation 8,700 909,694
---------
1,728,444
COSMETICS & TOILETRIES - 0.31%
Avon Products, Incorporated 4,800 294,600
Revlon, Incorporated* 7,800 275,437
-------
570,037
DOMESTIC OIL - 2.08%
Atlantic Richfield Company 37,700 3,020,713
Phillips Petroleum Corporation 16,500 802,312
---------
3,823,025
DRUGS & HEALTH CARE - 19.06%
Abbott Laboratories 14,800 970,325
ALZA Corporation* 29,300 932,106
American Home Products Corporation 7,300 558,450
Becton, Dickinson & Company 26,400 1,320,000
Bristol-Myers Squibb Company 6,600 624,525
Columbia/HCA Healthcare Corporation 29,300 868,012
Eli Lilly & Company 29,900 2,081,788
Glaxo Wellcome PLC, ADR 120,000 5,745,000
Johnson & Johnson 22,900 1,508,537
Merck & Company, Incorporated 13,100 1,391,875
Mylan Laboratories, Incorporated 26,400 552,750
Novartis AG 3,400 5,514,646
Pfizer, Incorporated 49,500 3,690,844
Schering-Plough Corporation 13,900 863,537
SmithKline Beecham PLC, ADR 114,500 5,889,594
Warner-Lambert Company 20,200 2,504,800
----------
35,016,789
ELECTRIC UTILITIES - 1.52%
Consolidated Edison Company of
New York, Incorporated 32,525 1,333,525
Duke Energy Company 26,194 1,450,493
---------
2,784,018
ELECTRICAL EQUIPMENT - 0.75%
Boston Scientific Corporation* 6,175 283,278
General Electric Company 14,800 1,085,950
---------
1,369,228
ELECTRONICS - 0.48%
Intel Corporation 12,600 885,150
-------
FINANCIAL SERVICES - 0.26%
American Express Company 5,300 473,025
-------
FOOD & BEVERAGES - 1.26%
Nestle SA 800 1,198,467
PepsiCo, Incorporated 29,900 1,089,481
Ralston Purina Company 325 30,196
---------
2,318,144
GAS & PIPELINE UTILITIES - 0.60%
Sonat, Incorporated 24,000 1,098,000
---------
HOTELS & RESTAURANTS - 0.18%
Hilton Hotels Corporation 11,150 331,712
-------
HOUSEHOLD PRODUCTS - 2.22%
Colgate-Palmolive Company 47,200 3,469,200
Dial Corporation 29,400 611,888
---------
4,081,088
INSURANCE - 5.32%
Allstate Corporation 47,300 4,298,388
W.R. Berkley Corporation 36,037 1,581,123
General Re Corporation 1,400 296,800
SAFECO Corporation 34,450 1,679,437
Travelers Property Casualty
Corporation 43,575 1,917,300
---------
9,773,048
INTERNATIONAL OIL - 3.21%
Amoco Corporation 20,200 1,719,525
The British Petroleum Company
PLC, ADR 15,600 1,243,125
Chevron Corporation 18,825 1,449,525
Mobil Corporation 10,200 736,312
Texaco, Incorporated 13,900 755,813
---------
5,904,300
LEISURE TIME - 0.09%
International Game Technology 6,900 174,225
-------
MINING - 4.51%
Newmont Mining Corporation 125,500 3,686,563
Potash Corporation of Saskatchewan,
Incorporated 55,450 4,602,350
---------
8,288,913
PAPER - 2.58%
Fort James Corporation 78,700 3,010,275
Kimberly-Clark Corporation 17,100 843,244
Minnesota Mining & Manufacturing
Company 10,700 878,069
---------
4,731,588
The accompanying notes are an integral part of the financial statements.
115
<PAGE> 154
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Shares Value
------ -----
PETROLEUM SERVICES - 0.75%
Baker Hughes, Incorporated 9,875 $430,797
Global Marine, Incorporated* 25,000 612,500
Helmerich & Payne, Incorporated 5,000 339,375
---------
1,382,672
RAILROADS & EQUIPMENT - 0.85%
Canadian Pacific, Ltd. 57,000 1,553,250
---------
REAL ESTATE - 1.08%
Legacy Hotels Real Estate
Investment 295,100 1,982,408
---------
SOFTWARE - 0.42%
Oracle Corporation* 34,800 776,475
-------
TELEPHONE - 4.18%
Ameritech Corporation 9,100 732,550
U.S. West, Incorporated 153,800 6,940,225
---------
7,672,775
TOBACCO - 0.34%
RJR Nabisco Holdings Corporation 16,975 636,562
-------
TOTAL COMMON STOCKS
(Cost: $96,057,446) $104,482,826
-----------
Principal
Amount Value
------ -----
U.S. TREASURY
OBLIGATIONS - 32.47%
U.S. Treasury Bonds - 4.42%
6.00% due 02/15/26 $470,000 $469,412
6.375% due 08/15/27 1,600,000 1,687,504
6.50% due 11/15/26 1,540,000 1,643,950
6.625% due 02/15/27 1,760,000 1,910,691
6.75% due 08/15/26 1,290,000 1,420,213
6.875% due 08/15/25 895,000 997,925
---------
8,129,695
U.S. TREASURY NOTES - 28.05%
5.625% due 11/30/99 1,300,000 1,298,778
5.75% due 10/31/00 3,775,000 3,779,719
5.75% due 11/31/00 1,700,000 1,703,179
5.75% due 10/31/02 1,700,000 1,701,598
5.875% due 02/15/00 10,000,000 10,039,100
5.875% due 11/15/05 800,000 804,248
6.00% due 08/15/99 8,400,000 8,460,396
6.125% due 12/31/01 1,600,000 1,621,248
6.25% due 08/31/00 965,000 977,970
6.25% due 02/15/07 4,635,000 4,782,717
6.625% due 03/31/02 10,300,000 10,633,102
6.625% due 04/30/02 1,100,000 1,136,091
6.875% due 05/15/06 4,300,000 4,601,000
----------
51,539,146
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $57,381,015) $59,668,841
----------
CORPORATE BONDS - 1.88%
TELEPHONE - 1.88%
New Jersey Bell Telephone Company,
5.875% due 12/01/06 500,000 484,215
New York Telephone Company,
5.875% due 09/01/03 2,000,000 1,960,660
7.00% due 12/01/33 1,000,000 1,002,180
---------
TOTAL CORPORATE BONDS
(Cost: $3,269,587) $3,447,055
---------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 5.60%
$10,297,248 Navigator Securities
Lending Trust, 5.74% $10,297,248
----------
REPURCHASE AGREEMENT - 3.18%
$5,841,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/97 at 5.00%, to be
repurchased at $5,842,623 on
01/02/98, collateralized by
$5,958,925 U.S. Treasury Bonds,
7.875% due 02/15/21 (valued at
$6,099,494, including interest) $5,841,000
---------
TOTAL INVESTMENTS
(Balanced Trust)
(Cost: $172,846,296) $183,736,970
===========
The accompanying notes are an integral part of the financial statements.
116
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSET ALLOCATION TRUSTS
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCKS: 72.30% 50.04% 23.92%
AEROSPACE: 0.63% 0.46% 0.27%
BE Aerospace, Incorporated* 3,100 $82,925 16,100 $430,675 3,400 $90,950
Boeing Company 9,114 446,016 17,042 833,993 3,642 178,230
British Aerospace 10,087 287,453 18,235 519,650 3,223 91,847
Gulfstream Aerospace Corporation -- -- -- -- 1,300 38,025
Kellstrom Industries, Incorporated* 5,500 136,125 6,100 150,975 900 22,275
Lockheed Martin Corporation 4,800 472,800 3,800 374,300 900 88,650
Northrop Grumman Corporation 900 103,500 5,800 667,000 400 46,000
United Technologies Corporation 1,800 131,063 1,200 87,375 300 21,844
--------- --------- -------
1,659,882 3,063,968 577,821
AIR FREIGHT: 0.07% 0.00% 0.01%
Expeditors International
of Washington, Incorporated 4,600 177,100 -- -- 300 11,550
------- ------
AIR TRAVEL: 1.01% 0.68% 0.33%
Air New Zealand, Ltd. 13,800 27,645 25,000 50,081 4,300 8,614
AMR Corporation* 17,700 2,274,450 30,500 3,919,250 4,400 565,400
Continental Airlines, Incorporated,
Class B* 3,000 144,375 5,800 279,125 1,800 86,625
Delta Air Lines, Incorporated 1,400 166,600 700 83,300 100 11,900
Japan Airlines Company, Ltd.* 11,000 29,907 36,000 97,879 6,000 16,313
Singapore Airlines, Ltd.* 4,000 26,105 8,000 52,210 -- --
--------- --------- -------
2,669,082 4,481,845 688,852
ALUMINUM: 0.06% 0.07% 0.04%
Alumax, Incorporated* 4,600 156,400 5,800 197,200 2,200 74,800
Aluminum Company of America -- -- 4,100 288,537 -- --
------- ------- ------
156,400 485,737 74,800
APPAREL & TEXTILES: 0.00% 0.00% 0.00%
Cygene Designs, Incorporated -- -- -- -- 900 253
---
AUTO PARTS: 1.00% 0.56% 0.32%
Eaton Corporation 26,000 2,320,500 41,200 3,677,100 6,600 589,050
Echlin, Incorporated -- -- 1,900 68,756 -- --
Modine Manufacturing 9,700 331,013 -- -- 2,800 95,550
--------- --------- -------
2,651,513 3,745,856 684,600
AUTOMOBILES: 0.78% 0.58% 0.29%
Bayer Motoren Werk 150 112,149 250 186,915 50 37,383
Chrysler Corporation 10,600 372,988 18,300 643,931 2,700 95,006
Daimler Benz AG* 1,900 133,289 3,500 245,532 700 49,106
Honda Motor Company 8,000 293,482 15,000 550,279 3,000 110,056
Oriental Holdings BHD* 6,400 7,832 11,200 13,707 1,600 1,958
Spartan Motors, Incorporated -- -- 11,900 73,631 2,900 17,944
Tower Automotive, Incorporated* 7,400 311,263 11,700 492,131 2,100 88,331
Toyota Motor Corporation 21,000 601,516 37,000 1,059,815 6,000 171,862
Volvo AB, Series B 3,100 83,162 5,600 150,229 1,000 26,827
Volvo Aktiebolaget, ADR 6,000 162,000 15,400 415,800 400 10,800
--------- --------- -------
2,077,681 3,831,970 609,273
</TABLE>
The accompanying notes are an integral part of the financial statements.
117
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
BANKING: 6.95% 4.87% 2.42%
Akita Bank, Ltd. 29,000 $113,273 54,000 $210,921 9,000 $35,154
Banc One Corporation 13,400 727,788 17,400 945,038 1,500 81,469
Bank of New York, Incorporated 45,300 2,618,906 78,900 4,561,406 12,400 716,875
Bank of Ireland 19,800 304,079 34,200 525,228 6,200 95,217
Bank of Tokyo-Mitsubishi, Ltd.* 37,000 510,071 67,000 923,642 12,000 165,429
Bank United Corporation 2,100 102,769 -- -- -- --
BankAmerica Corporation 24,400 1,781,200 45,400 3,314,200 6,000 438,000
Banco Bilbao Vizcaya SA* 7,050 228,136 12,700 410,968 2,200 71,191
Barclays 16,247 432,519 29,367 781,793 5,146 136,994
BHF-Bank AG* 7,850 222,546 14,150 401,151 2,450 69,457
Charter One Financial, Incorporated 10,400 656,484 28,638 1,807,774 2,315 146,134
Citicorp 11,300 1,428,744 23,500 2,971,281 3,600 455,175
Comerica, Incorporated 1,900 171,475 -- -- 800 72,200
Credito Italiano 67,500 208,147 122,000 376,207 22,500 69,382
Credit Suisse Group 3,370 521,229 6,085 941,151 1,165 180,188
Den Danske Bank* 975 129,917 1,775 236,515 300 39,974
Den Norske Bank 39,500 186,114 70,800 333,591 12,300 57,954
Deutsche Bank AG 1,700 120,014 3,000 211,790 550 38,828
First Chicago NBD Corporation 8,693 725,866 19,231 1,605,789 3,615 301,853
Fleet Financial Group, Incorporated 3,898 292,106 7,345 550,416 1,659 124,321
Fuji Bank 25,000 101,095 46,000 186,015 8,000 32,350
Hang Seng Bank* 14,000 135,050 20,000 192,928 4,000 38,586
HSBC Holdings - HKD 2,535 62,484 4,736 116,735 754 18,585
HSBC Holdings -(pound) 14,730 363,394 26,604 656,330 4,636 114,372
Lloyds TSB Group PLC 47,320 615,614 85,011 1,105,958 14,700 191,241
Mitsubishi Trust & Banking 8,000 80,263 15,000 150,494 2,000 20,066
National City Corporation 9,800 644,350 16,700 1,098,025 1,200 78,900
NationsBank Corporation 17,596 1,070,057 30,260 1,840,186 4,528 275,359
National Australia Bank* 12,500 174,587 22,900 319,844 3,900 54,471
Nordbanken Holdings AB* 20,300 114,796 43,400 245,426 7,000 39,585
North Fork Bancorporation, Incorporated 11,514 386,439 13,692 459,538 4,356 146,198
Popular, Incorporated 8,500 420,750 14,600 722,700 2,200 108,900
Sakura Bank, Ltd.* 40,000 114,268 72,000 205,683 13,000 37,137
Society Generale* 2,742 373,588 4,827 657,662 863 117,581
Svenska Handelbanken 7,100 245,463 12,800 442,524 2,200 76,059
Toyo Trust & Banking* 16,000 94,356 30,000 176,917 5,000 29,486
United Overseas Bank 13,800 76,553 25,600 142,011 6,200 34,393
U.S. Bancorp 8,300 929,081 8,300 929,081 2,400 268,650
Wachovia Corporation 2,700 219,037 4,500 365,063 700 56,788
Wells Fargo & Company 2,000 678,875 2,900 984,369 133 45,145
Westpac Banking Corporation, Ltd. 6,600 42,224 11,900 76,131 2,100 13,435
Zions Bancorp -- -- 2,000 90,750 -- --
---------- ---------- ---------
18,423,707 32,273,231 5,093,082
BROADCASTING: 1.09% 0.63% 0.38%
CBS Corporation 33,807 995,194 43,634 1,284,476 9,198 270,766
BET Holdings, Incorporated* 2,700 147,487 4,500 245,812 2,000 109,250
Flextech PLC* 7,000 60,017 12,600 108,031 2,200 18,863
King World Productions, Incorporated* 10,800 623,700 11,400 658,350 1,900 109,725
Medialink Worldwide, Incorporated* 12,600 170,100 16,500 222,750 -- --
News Corporation 13,800 76,180 24,000 132,488 4,300 23,737
Pearson 17,400 226,064 30,800 400,159 5,500 71,457
Sky Network Television, Ltd.* 6,700 10,076 12,100 18,197 2,100 3,158
</TABLE>
The accompanying notes are an integral part of the financial statements.
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(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
BROADCASTING - CONTINUED
Viacom, Incorporated, Class A* -- -- -- -- 272 $11,118
Viacom, Incorporated, Class B* 14,000 $ 580,125 26,400 $1,093,950 4,400 182,325
--------- --------- -------
2,888,943 4,164,213 800,399
BUILDING CONSTRUCTION: 0.24% 0.11% 0.08%
Fluor Corporation 4,700 175,662 10,000 373,750 1,600 59,800
Harsco Corporation 10,400 448,500 7,800 336,375 2,400 103,500
------- ------- -------
624,162 710,125 163,300
BUSINESS SERVICES: 2.59% 1.71% 0.93%
ADVO, Incorporated* 4,400 85,800 5,000 97,500 2,200 42,900
Automatic Data Processing, Incorporated 2,500 153,438 4,300 263,912 700 42,962
Barra, Incorporated* 4,200 101,325 9,450 227,981 1,950 47,044
Brambles Industries, Ltd.* 4,700 93,275 8,700 172,658 1,100 21,830
Britax International* 49,900 109,827 78,000 171,674 13,800 30,373
Cap Gemini SA* 2,100 172,194 3,700 303,390 650 53,298
Cendant Corporation* 31,720 1,090,375 44,245 1,520,922 9,131 313,878
Dames and Moore, Incorporated 4,400 58,300 9,300 123,225 3,500 46,375
EA Engineering Science and Technology,
Incorporated -- -- -- -- 2,100 4,200
Fiserv, Incorporated* 2,535 124,532 8,132 399,485 612 30,065
ISS International* 7,450 273,997 13,450 494,666 2,350 86,429
Nokia Corporation, ADR 7,100 497,000 12,000 840,000 2,100 147,000
Ogden Corporation 36,900 1,040,119 66,700 1,880,106 11,700 329,794
OmniCom Group 41,200 1,745,850 74,800 3,169,650 11,000 466,125
Rentokil Initial PLC* 21,800 96,473 39,400 174,360 6,900 30,535
SABRE Group Holdings, Incorporated,
Class A* 10,700 308,962 5,000 144,375 1,200 34,650
Securitas AB, Series B* 1,200 36,273 2,200 66,500 400 12,091
Security Dynamics Technologies* 7,700 275,275 9,400 336,050 -- --
Sitel Corporation* 9,700 88,512 13,100 119,537 4,100 37,412
SunGard Data Systems, Incorporated* 11,800 365,800 18,000 558,000 2,600 80,600
TRC Companies, Incorporated -- -- -- -- 2,500 10,625
Universal Outdoor Holdings, Incorporated* 3,100 161,200 4,700 244,400 1,600 83,200
--------- ---------- ---------
6,878,527 11,308,391 1,951,386
CHEMICALS: 2.87% 2.14% 0.87%
Air Products & Chemicals, Incorporated 1,000 82,250 -- -- -- --
AKZO Nobel NV 650 112,071 1,150 198,279 200 34,483
Bayer AG* 3,200 119,536 5,800 216,660 1,000 37,355
Ciba Specialty Chemicals AG* 1,025 122,057 1,855 220,894 250 29,770
Cytec Industries, Incorporated* 22,200 1,042,013 44,000 2,065,250 5,600 262,850
Dainippon Ink & Chemicals, Incorporated* 42,000 106,150 76,000 192,081 13,000 32,856
E.I. Du Pont De Nemours & Company 24,100 1,447,506 43,200 2,594,700 6,100 366,381
W.R. Grace & Company 6,100 490,669 12,700 1,021,556 1,200 96,525
Hexcel Corporation* 5,700 142,144 16,600 413,963 2,000 49,875
Imperial Chemical Industries PLC 10,200 159,326 18,300 285,849 3,200 49,985
Imperial Chemical Industries PLC, ADR 5,400 350,662 13,400 870,162 -- --
Martek Biosciences Corporation* -- -- -- -- 600 4,950
Microfluidics International Corporation* -- -- -- -- 1,100 2,681
Monsanto Company 40,800 1,713,600 68,400 2,872,800 7,600 319,200
Olin Corporation -- -- 1,600 75,000 400 18,750
</TABLE>
The accompanying notes are an integral part of the financial statements.
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CHEMICALS - CONTINUED
Om Group, Incorporated 2,700 $98,888 4,350 $159,319 -- --
Praxair, Incorporated 2,600 117,000 4,500 202,500 700 $31,500
Rhone Poulenc SA 12,313 551,563 22,831 1,022,720 3,808 170,580
Shin-Etsu Chemical Company, Ltd. 6,000 114,421 10,000 190,702 2,000 38,141
Solutia, Incorporated* 9,060 241,789 13,260 353,876 2,580 68,854
TETRA Technologies, Incorporated* 6,500 136,906 12,200 256,962 800 16,850
Toray Industries, Incorporated* 20,000 89,607 36,000 161,293 6,000 26,882
Union Carbide Corporation 5,500 236,156 12,600 541,012 2,600 111,638
Wesfarmers, Ltd.* 9,891 82,850 17,928 150,170 3,091 25,891
Witco Corporation 1,200 48,975 3,500 142,844 800 32,650
--------- ---------- ---------
7,606,139 14,208,592 1,828,647
COMPUTERS & BUSINESS EQUIPMENT: 2.40% 1.43% 0.81%
3COM Corporation* 1,500 52,406 3,500 122,281 900 31,444
Avant Corporation* 3,800 63,650 6,900 115,575 1,900 31,825
Cisco Systems, Incorporated* 7,950 443,213 13,650 760,988 1,950 108,713
Citrix Systems, Incorporated* 2,300 174,800 -- -- -- --
Compaq Computer Corporation 11,900 671,606 20,500 1,156,969 3,000 169,312
Dell Computer Corporation* 6,700 562,800 10,000 840,000 1,500 126,000
EMC Corporation* 37,800 1,037,138 59,600 1,635,275 8,200 224,987
Evans & Sutherland Computer* 6,700 194,300 5,000 145,000 1,800 52,200
Fujitsu 22,000 235,889 40,000 428,889 7,000 75,056
General Binding Corporation 6,000 180,000 12,500 375,000 -- --
Hewlett-Packard Company 2,100 131,250 4,000 250,000 800 50,000
International Business Machines Corporation 11,100 1,160,644 13,800 1,442,963 2,700 282,319
Iomega Corporation* 26,600 330,837 28,800 358,200 3,000 37,312
Pitney Bowes, Incorporated 11,600 1,043,275 18,200 1,636,862 3,700 332,769
Sundstrand Corporation 1,900 95,712 3,900 196,462 2,800 141,050
Tech Data Corporation -- -- -- -- 1,000 38,875
--------- --------- ---------
6,377,520 9,464,464 1,701,862
CONGLOMERATES: 0.27% 0.21% 0.09%
Berjaya Group BHD* 46,000 9,343 83,000 16,858 14,000 2,844
CSR, Ltd.* 24,400 82,694 47,300 160,304 9,200 31,180
Harcourt General, Incorporated 3,100 169,725 6,700 366,825 -- --
Hutchison Whampoa 40,000 250,871 72,000 451,568 13,000 81,533
Sophus Berendsen* 650 107,197 1,100 181,410 225 37,106
Viag AG* 200 107,729 400 215,459 50 26,932
------- --------- -------
727,559 1,392,424 179,595
CONSTRUCTION MATERIALS: 0.45% 0.35% 0.07%
Boral, Ltd.* 14,500 36,667 26,000 65,748 4,500 11,380
CRH* 3,851 44,657 7,693 89,210 916 10,622
Lafarge Corporation 1,100 32,519 1,800 53,212 -- --
Masco Corporation 10,100 513,838 21,500 1,093,812 1,000 50,875
Portland Valderrivas SA* 700 62,947 1,250 112,406 200 17,985
Sherwin-Williams Company 10,300 285,825 16,300 452,325 -- --
Tarmac PLC* 38,300 71,715 69,200 129,574 12,000 22,469
Vulcan Materials Company -- -- 800 81,700 -- --
Wolseley PLC 16,900 134,325 30,600 243,216 5,300 42,126
--------- --------- -------
1,182,493 2,321,203 155,457
</TABLE>
The accompanying notes are an integral part of the financial statements.
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CONSTRUCTION & MINING EQUIPMENT: 0.00% 0.01% 0.00%
Harnischfeger Industries, Incorporated -- -- 1,434 $50,638 291 $10,276
------ ------
CONTAINERS & GLASS: 0.06% 0.01% 0.01%
Silgan Holdings, Incorporated* 5,200 $169,000 3,000 97,500 500 16,250
------- ------ ------
Cosmetics & Toiletries: 0.09% 0.07% 0.04%
Avon Products, Incorporated 2,200 135,025 3,900 239,362 500 30,687
Kao Corporation 8,000 115,187 14,000 201,578 3,000 43,195
------- ------- ------
250,212 440,940 73,882
DOMESTIC OIL: 0.49% 0.26% 0.13%
Amerada Hess Corporation 4,000 219,500 5,900 323,763 1,100 60,363
Kerr-McGee Corporation 1,400 88,637 -- -- 600 37,987
USX Marathon Group 29,400 992,250 40,700 1,373,625 4,900 165,375
--------- --------- -------
1,300,387 1,697,388 263,725
DRUGS & HEALTH CARE: 7.26% 4.97% 2.27%
Alkermes, Incorporated* 8,900 176,888 23,500 467,062 2,100 41,737
American Home Products Corporation 11,800 902,700 23,000 1,759,500 3,500 267,750
Anesta Corporation* 8,600 140,825 6,200 101,525 -- --
Arris Pharmaceutical Corporation* 18,900 158,288 -- -- -- --
Astra AB* 10,533 182,406 17,766 307,664 3,100 53,685
Baxter International, Incorporated 3,700 186,619 7,100 358,106 600 30,263
Bristol-Myers Squibb Company 10,800 1,021,950 21,600 2,043,900 4,000 378,500
Columbia/HCA-Healthcare Corporation 20,700 613,237 34,150 1,011,694 4,150 122,944
Cor Therapeutics, Incorporated* 8,100 182,250 19,200 432,000 3,100 69,750
Eli Lilly & Company 8,400 584,850 4,400 306,350 2,200 153,175
GEHE AG* 3,500 175,102 6,570 328,692 1,120 56,033
GelTex Pharmaceuticals, Incorporated* 2,600 68,900 -- -- -- --
Genentech, Incorporated* 22,000 1,333,750 29,000 1,758,125 3,900 236,438
Genzyme Corporation* -- -- 4,700 130,425 -- --
Gilead Sciences* 900 34,425 1,400 53,550 -- --
Glaxo Wellcome PLC 21,769 518,985 39,251 935,766 6,830 162,831
Health Management Association, Class A* 13,387 338,022 25,050 632,512 4,462 112,665
Healthsouth Corporation* 34,800 965,700 53,100 1,473,525 4,800 133,200
ICN Pharmaceuticals, Incorporated 2,100 102,506 4,400 214,775 -- --
INCYTE Pharmaceuticals, Incorporated* 2,200 99,000 5,200 234,000 -- --
Johnson & Johnson 10,200 671,925 19,200 1,264,800 6,200 408,425
Ligand Pharmaceuticals,
Incorporated, Class B* 23,200 298,700 41,100 529,162 1,700 21,887
Medimmune, Incorporated* -- -- 6,700 287,263 -- --
Medtronic, Incorporated 2,400 125,550 -- -- 2,400 125,550
Merck & Company, Incorporated 28,900 3,070,625 46,000 4,887,500 5,700 605,625
Novartis AG 623 1,010,478 1,128 1,829,565 197 319,525
Pfizer, Incorporated 9,600 715,800 19,100 1,424,144 2,700 201,319
Renal Treatment Centers, Incorporated* 6,500 234,813 16,000 578,000 600 21,675
Roche Holdings AG 28 277,950 50 496,339 9 89,341
SangStat Medical Corporation* 10,000 405,000 20,700 838,350 2,400 97,200
Sankyo Company, Ltd.* 9,000 203,339 5,000 73,141 1,000 14,628
Sanofi 1,200 133,588 2,600 289,441 350 38,963
Schering-Plough Corporation 18,100 1,124,463 31,100 1,932,088 4,700 291,987
Sierra Health Services, Incorporated* 8,100 272,362 9,800 329,525 500 16,812
SmithKline Beecham PLC* 40,954 422,100 80,792 832,698 12,924 133,204
</TABLE>
The accompanying notes are an integral part of the financial statements.
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PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
DRUGS & HEALTH CARE - CONTINUED
Spacelabs, Incorporated* 2,800 $53,200 6,100 $115,900 1,900 $36,100
St. Jude Medical, Incorporated* 4,450 135,725 11,500 350,750 1,100 33,550
Takeda Chemical Industries 11,000 313,395 20,000 569,809 4,000 113,962
Tenet Healthcare Corporation* 16,400 543,250 28,200 934,125 4,100 135,812
Thermedics, Incorporated* 5,900 96,613 9,600 157,200 2,200 36,025
United Healthcare Corporation 12,200 606,187 24,400 1,212,375 2,800 139,125
Universal Health Services, Incorporated* 4,900 246,837 10,600 533,975 1,200 60,450
ViroPharma, Incorporated* 2,800 49,350 11,900 209,737 -- --
Warner Lambert Company 2,100 260,400 3,500 434,000 300 37,200
Wellpoint Health Networks, Incorporated* 4,600 194,350 7,200 304,200 -- --
---------- ---------- ---------
19,252,403 32,963,258 4,797,336
ELECTRICAL EQUIPMENT: 3.15% 2.20% 0.91%
ABB AG* 65 81,628 120 150,698 25 31,395
Alcatel Alsthom Cie Generale D'Electric 3,587 455,937 6,449 819,720 1,124 142,870
AVX Corporation 9,100 167,781 13,600 250,750 -- --
Baldor Electric Company 28,667 621,708 48,800 1,058,350 -- --
Boston Scientific Corporation* 2,600 119,275 5,200 238,550 1,600 73,400
Emerson Electric Company 7,000 395,063 10,400 586,950 -- --
FLIR Systems, Incorporated* 4,500 93,375 16,200 336,150 3,800 78,850
General Electric Company 68,900 5,055,537 119,500 8,768,313 17,000 1,247,375
Hitachi, Incorporated 20,000 142,452 30,000 213,678 5,000 35,613
IFR Systems, Incorporated 11,100 172,050 12,450 192,975 -- --
Johnson Controls, Incorporated 8,300 396,325 13,600 649,400 1,800 85,950
Matsushita Electric Works 14,000 121,161 26,000 225,013 4,000 34,617
NEC Corporation 6,000 63,874 11,000 117,102 2,000 21,291
Raychem Corporation 6,400 275,600 12,000 516,750 2,600 111,963
Sanmina Corporation* -- -- 1,600 108,400 -- --
Siemens AG* 2,100 124,323 3,800 224,965 600 35,521
Sumitomo Electric Industry 5,000 68,163 9,000 122,693 2,000 27,265
--------- ---------- ---------
8,354,252 14,580,457 1,926,110
ELECTRIC UTILITIES: 1.14% 0.80% 0.38%
American Electric Power, Incorporated 1,300 67,113 4,900 252,963 800 41,300
China Light & Power Holdings, Ltd. 22,000 122,080 40,000 221,964 7,000 38,844
CINergy Corporation 8,300 317,994 12,400 475,075 2,700 103,444
DPL, Incorporated 7,000 201,250 5,900 169,625 800 23,000
Datacraft Asia* 15,000 38,700 27,000 69,660 5,000 12,900
DQE -- -- 2,600 91,325 500 17,562
Duke Energy Company 12,400 686,650 20,100 1,113,038 2,100 116,288
Electric De Portugal* 8,400 159,055 15,000 284,026 2,650 50,178
Enova Corporation 2,800 75,775 9,700 262,506 1,300 35,181
Entergy Corporation 4,000 119,750 6,800 203,575 1,000 29,937
Iberdrola SA 8,400 110,548 15,150 199,381 2,650 34,875
Kansai Electric Power 4,800 81,244 9,000 152,332 1,500 25,389
National Grid Group 49,400 234,493 89,100 422,942 17,700 84,019
Peco Energy Company 3,700 89,725 3,900 94,575 -- --
Tenaga Nasional* 11,000 23,473 26,000 55,483 5,000 10,670
Tokyo Electric Power 2,400 43,747 4,000 72,911 -- --
United Water Resources, Incorporated 21,400 418,637 38,300 749,244 5,400 105,638
VEBA AG 1,150 78,310 2,050 139,595 400 27,238
Yorkshire Water* 18,646 148,536 34,495 274,791 6,008 47,860
--------- --------- -------
3,017,080 5,305,011 804,323
</TABLE>
The accompanying notes are an integral part of the financial statements.
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ELECTRONICS: 2.09% 1.41% 0.64%
ADC Telecommunications, Incorporated 15,000 $626,250 25,300 $1,056,275 700 $29,225
Adflex Solutions, Incorporated* -- -- 4,800 77,400 2,000 32,250
Altera Corporation* 7,400 245,125 10,400 344,500 2,100 69,562
AMP, Incorporated 2,400 100,800 5,500 231,000 1,000 42,000
Andrew Corporation* 19,000 456,000 17,600 422,400 2,500 60,000
DSC Communications Corporation -- -- -- -- 200 4,800
Dynatech Corporation* -- -- 2,900 135,937 400 18,750
Elec & Eltek International Holdings, Ltd.* 13,200 59,664 23,100 104,412 3,300 14,916
Electronic Data Systems Corporation 5,300 232,869 13,900 610,731 -- --
Electronics For Imaging, Incorporated* 11,400 189,525 17,800 295,925 3,800 63,175
Fanuc, Ltd. 1,000 37,834 3,000 113,502 -- --
Intel Corporation 18,700 1,313,675 26,400 1,854,600 4,300 302,075
Liberty Technologies, Incorporated -- -- -- -- 3,500 8,094
Linear Technology Corporation 7,400 426,425 12,700 731,838 1,900 109,487
Maxim Integrated Products, Incorporated* -- -- 8,400 289,800 1,200 41,400
Motorola, Incorporated 6,400 365,200 11,500 656,219 2,300 131,244
Raytheon Company 3,400 171,700 6,700 338,350 -- --
REMEC, Incorporated* 2,800 63,000 12,100 272,250 -- --
Rohm Company 2,000 203,722 3,000 305,583 1,000 101,861
Sawtek, Incorporated* 1,300 34,288 -- -- 400 10,550
Scientific-Atlanta, Incorporated 16,800 281,400 32,600 546,050 5,500 92,125
TDK Corporation 2,000 150,724 3,000 226,086 1,000 75,362
Texas Instruments, Incorporated 6,000 270,000 9,500 427,500 1,600 72,000
ThermoQuest Corporation* 5,400 97,875 5,700 103,313 -- --
Tracor, Incorporated* 2,700 82,012 -- -- -- --
Vitesse Semiconductor Corporation* 3,900 147,225 4,100 154,775 1,700 64,175
Xilinx, Incorporated* -- -- 2,100 73,631 400 14,025
--------- --------- ---------
5,555,313 9,372,077 1,357,076
FINANCIAL SERVICES: 3.33% 2.59% 1.12%
3I Group PLC 13,800 114,466 25,000 207,366 4,300 35,667
Acom Company 3,700 204,028 5,000 275,714 1,400 77,200
American Express Company 9,200 821,100 14,000 1,249,500 2,600 232,050
Associates First Capital Corporation 7,200 512,100 9,500 675,688 800 56,900
Bear Stearns 1,900 90,250 -- -- -- --
Beneficial Corporation 5,500 457,188 18,900 1,571,062 1,500 124,688
Case Corporation 3,400 205,488 12,000 725,250 -- --
Corporate Express, Incorporated* -- -- 3,700 47,637 600 7,725
Eaton Vance Corporation -- -- -- -- 1,200 45,300
A.G. Edwards, Incorporated 2,800 111,300 -- -- -- --
Enhance Financial Services
Group, Incorporated 3,900 232,050 6,300 374,850 -- --
FactSet Research Systems, Incorporated* 2,200 67,650 4,000 123,000 900 27,675
Federal Home Loan Mortgage Corporation 7,200 301,950 11,400 478,087 3,200 134,200
Federal National Mortgage Association 30,900 1,763,231 71,300 4,068,556 7,800 445,087
Green Tree Financial Corporation 9,300 243,544 21,200 555,175 2,500 65,469
Hartford Financial Services Group 6,100 570,731 9,300 870,131 1,500 140,344
Household International, Incorporated 4,100 523,006 7,800 994,988 1,500 191,344
Internationale Nederlanden Groep* 4,162 175,294 7,522 316,810 1,405 59,175
Interra Financial, Incorporated -- -- 8,100 558,900 1,450 100,050
Japan Associated Finance Company* 1,000 35,613 2,000 71,226 1,000 35,613
Julius Baer Holdings* 50 92,732 90 166,918 15 27,820
</TABLE>
The accompanying notes are an integral part of the financial statements.
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - CONTINUED
Lehman Brothers Holdings, Incorporated 5,700 $290,700 13,400 $683,400 -- --
London Forfaiting Company PLC 12,900 75,642 23,200 136,038 4,000 $23,455
McDonald Company Investments,
Incorporated 4,800 136,200 9,800 278,075 1,600 45,400
Morgan Stanley Dean Witter 1,980 117,068 -- -- 1,320 78,045
Nomura Securities Company, Ltd. 10,000 133,262 18,000 239,871 2,000 26,652
Orix Corporation 1,000 69,694 2,000 139,389 -- --
Peoples Heritage Financial Group 6,400 294,400 12,200 561,200 2,400 110,400
Pioneer Group, Incorporated 10,400 292,500 11,900 334,688 1,100 30,938
Providian Financial Corporation 1,400 63,262 1,900 85,856 600 27,112
SLM Holding Corporation 1,200 166,950 700 97,388 -- --
Travelers Group, Incorporated 12,447 670,582 24,247 1,306,307 4,047 218,032
--------- ---------- ---------
8,831,981 17,193,070 2,366,341
FOOD & BEVERAGES: 3.01% 2.18% 1.13%
Archer-Daniels-Midland Company 4,427 96,011 14,349 311,194 2,662 57,732
Asahi Breweries* 8,000 116,413 15,000 218,274 3,000 43,655
Campbell Soup Company 13,500 784,688 24,800 1,441,500 1,100 63,937
Celestial Seasonings, Incorporated* -- -- 2,900 91,350 1,600 50,400
The Coca Cola Company 29,900 1,992,087 60,900 4,057,463 8,400 559,650
Devro PLC* 18,000 111,460 33,000 204,343 5,700 35,296
Dole Food Company, Incorporated 3,900 178,425 6,100 279,075 1,500 68,625
General Mills, Incorporated 6,088 436,053 11,879 850,833 2,174 155,713
Goodmark Foods, Incorporated 4,400 81,400 10,900 201,650 2,600 48,100
Hershey Foods Corporation 5,200 322,075 5,800 359,238 -- --
Huhtamaki Oy 1,100 45,405 2,000 82,554 400 16,511
Kellogg Company 3,500 173,688 6,100 302,713 900 44,662
Lion Nathan, Ltd.* 19,700 44,154 35,600 79,791 6,200 13,896
Nabisco Holdings Corporation, Class A 5,800 280,937 6,000 290,625 5,100 247,031
Nestle SA 88 131,831 160 239,693 23 34,456
Nippon Suisan Kaisha, Ltd.* 50,000 63,185 131,000 165,543 16,000 20,219
PepsiCo, Incorporated 39,900 1,453,856 68,500 2,495,969 10,100 368,019
Pioneer Hi Bred International, Incorporated 3,700 396,825 6,800 729,300 1,100 117,975
Ralston Purina Company 6,300 585,506 10,800 1,003,725 1,800 167,287
Sara Lee Corporation 4,600 259,037 4,400 247,775 2,700 152,044
Snow Brand Milk Products Company, Ltd.* 31,000 83,335 56,000 150,540 9,000 24,194
Tyson Foods, Incorporated, Class A 16,950 347,475 33,000 676,500 4,950 101,475
--------- ---------- ---------
7,983,846 14,479,648 2,390,877
FOREST PRODUCTS: 0.08% 0.00% 0.01%
Georgia-Pacific Corporation 2,600 157,950 -- -- 200 12,150
Georgia-Pacific Corporation (Timber Group)* 2,600 58,988 -- -- 200 4,537
Wickes Lumber Company -- -- -- -- 1,800 5,850
------- ------
216,938 22,537
GAS & PIPELINE UTILITIES: 1.27% 0.94% 0.58%
Coastal Corporation 22,600 1,399,788 40,500 2,508,469 5,600 346,850
Eastern Enterprises -- -- 3,800 171,000 1,600 72,000
Enron Corporation 4,200 174,563 7,600 315,875 1,100 45,719
MCN Corporation 8,800 355,300 16,000 646,000 3,100 125,163
Ocean Energy, Incorporated* 5,300 261,356 6,700 330,394 1,200 59,175
Pacific Enterprises 9,900 372,488 19,000 714,875 3,400 127,925
Piedmont National Gas, Incorporated 7,900 283,906 14,200 510,312 3,200 115,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
124
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PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
GAS & PIPELINE UTILITIES - CONTINUED
Questar Corporation 4,100 $182,962 12,900 $575,662 5,900 $263,287
UGI Corporation 11,600 340,025 16,700 489,519 2,400 70,350
--------- --------- ---------
3,370,388 6,262,106 1,225,469
GOLD: 0.23% 0.15% 0.09%
Newmont Mining Corporation 20,600 605,125 33,600 987,000 6,300 185,063
------- ------- -------
HOMEBUILDERS: 0.12% 0.12% 0.06%
Beazer Homes USA, Incorporated* 40,300 106,570 72,800 192,514 12,700 33,584
Elcor Chemical Corporation 6,300 151,200 16,100 386,400 1,050 25,200
Lennar Corporation -- -- -- -- 2,000 43,125
Sekisui House 10,000 64,257 36,000 231,324 3,000 19,277
------- ------- -------
322,027 810,238 121,186
HOTELS & RESTAURANTS: 0.53% 0.36% 0.19%
Hilton Hotels Corporation 4,100 121,975 7,000 208,250 1,100 32,725
ITT Corporation* 1,300 107,738 3,200 265,200 400 33,150
La Quinta Inns, Incorporated 7,425 143,395 14,850 286,791 4,275 82,561
McDonald's Corporation 10,800 515,700 18,600 888,150 2,800 133,700
Mirage Resorts, Incorporated* 2,800 63,700 5,100 116,025 800 18,200
Promus Hotel Corporation* -- -- 1,433 60,186 323 13,566
Rainforest Cafe, Incorporated* 5,600 184,800 2,300 75,900 -- --
Tricon Global Restaurants, Incorporated* 6,080 176,700 11,250 326,953 1,760 51,150
Yoshinoya D&C Company, Ltd. 10 91,139 18 164,050 3 27,342
--------- --------- -------
1,405,147 2,391,505 392,394
HOUSEHOLD APPLIANCES FURNISHING: 0.37% 0.27% 0.13%
Fedders USA, Incorporated 10,000 62,500 23,800 148,750 -- --
Matsushita Electronic Industries 18,000 263,307 33,000 482,730 5,000 73,141
Philips Electronics 7,200 431,791 12,950 776,623 2,350 140,931
Sony Corporation 2,600 230,987 4,500 399,785 700 62,189
------- --------- -------
988,585 1,807,888 276,261
HOUSEHOLD PRODUCTS: 0.35% 0.20% 0.13%
Cultor Oyj* 1,300 70,593 2,350 127,611 350 19,006
Gillette Company 600 60,262 -- -- -- --
Procter & Gamble Company 2,000 159,625 -- -- -- --
Snap-On, Incorporated 1,700 74,163 2,800 122,150 800 34,900
Stanhome, Incorporated 2,500 64,219 7,100 182,381 2,600 66,788
Unilever PLC* 33,200 285,579 59,600 512,665 10,400 89,458
Unilever NV* 3,550 218,849 6,450 397,628 1,200 73,977
------- --------- -------
933,290 1,342,435 284,129
INDUSTRIAL MACHINERY: 0.82% 0.59% 0.31%
AES Corporation* 5,800 270,425 8,600 400,975 1,900 88,588
American Standard Companies, Incorporated -- -- -- -- 500 19,156
Applied Materials, Incorporated* 7,700 231,963 7,700 231,963 1,200 36,150
Bunka Shutter Company* 27,000 74,443 50,000 137,857 8,000 22,057
Ingersoll Rand Company 8,400 340,200 20,100 814,050 1,650 66,825
Komatsu, Ltd. 26,000 130,428 48,000 240,790 8,000 40,132
Laird Group PLC* 13,000 95,019 25,100 183,459 4,400 32,160
Mannesmann AG 500 252,647 1,000 505,295 150 75,794
Minebea Company 17,000 182,278 29,000 310,944 5,000 53,611
Mitsubishi Heavy Industry 7,000 29,164 12,000 49,996 -- --
</TABLE>
The accompanying notes are an integral part of the financial statements.
125
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PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INDUSTRIAL MACHINERY - CONTINUED
Sulzer AG 160 $101,396 290 $183,780 50 $31,686
Tadano, Ltd. 28,000 76,128 51,000 138,661 9,000 24,470
Thermo Electron Corporation* 3,825 170,212 6,075 270,338 1,950 86,775
THK Company, Ltd.* 14,400 140,063 30,000 291,798 4,500 43,770
TSI, Incorporated 7,800 78,000 14,400 144,000 2,400 24,000
--------- --------- -------
2,172,366 3,903,906 645,174
INSURANCE: 2.47% 1.74% 0.75%
Aflac, Incorporated 1,700 86,913 2,100 107,363 -- --
Allianz AG* 700 181,328 1,250 323,800 200 51,808
Allstate Corporation 29,842 2,711,892 51,744 4,702,236 8,262 750,809
American International Group, Incorporated 900 97,875 -- -- -- --
Assicurazioni Generali 6,000 147,371 10,000 245,619 2,000 49,124
CIGNA Corporation 1,200 207,675 700 121,144 -- --
Fortis AG* 300 62,589 500 104,316 100 20,863
Harleysville Group, Incorporated 7,000 168,000 14,600 350,400 4,000 96,000
Istituto Nazionale delle Assicurazioni 60,000 121,594 108,000 218,869 19,000 38,505
Marsh & McLennan Companies, Incorporated -- -- 3,600 268,425 -- --
MBIA, Incorporated 6,400 427,600 9,600 641,400 1,400 93,538
Mercury General Corporation* 800 44,200 -- -- -- --
National Mutual Asia, Ltd.* 42,000 41,734 76,000 75,519 14,000 13,911
PMI Group, Incorporated 13,100 947,294 26,900 1,945,206 2,500 180,781
Pohjola, Series B 1,500 55,587 2,700 100,056 450 16,676
Protective Life Corporation 2,100 125,475 4,400 262,900 -- --
Prudential Corporation 4,200 51,145 7,500 91,330 1,300 15,831
Selective Insurance Group, Incorporated 13,400 361,800 25,600 691,200 3,800 102,600
Skandia Foersaekrings AB 6,300 297,151 11,200 528,269 1,900 89,617
Sumitomo Marine & Fire 18,000 95,121 34,000 179,674 6,000 31,707
Transamerica Corporation 1,100 117,150 1,900 202,350 -- --
Vesta Insurance Group, Incorporated 3,300 195,938 5,900 350,312 600 35,625
--------- ---------- ---------
6,545,432 11,510,388 1,587,395
INTERNATIONAL OIL: 1.83% 1.24% 0.56%
British Petroleum Company PLC 28,071 371,338 50,812 672,168 8,864 117,258
British Petroleum Company PLC, ADR 600 47,812 2,200 175,312 600 47,812
Mobil Corporation 7,000 505,312 11,900 859,031 1,800 129,937
Royal Dutch Petroleum Company 9,100 493,106 6,600 357,638 900 48,769
Royal Dutch Petroleum Company - NLG 12,300 675,161 22,200 1,218,583 3,850 211,331
Shell Transport & Trading Company PLC 18,300 128,347 33,100 232,146 5,800 40,678
Texaco, Incorporated 48,500 2,637,188 86,700 4,714,313 10,800 587,250
--------- --------- ---------
4,858,264 8,229,191 1,183,035
LEISURE TIME: 1.13% 0.84% 0.40%
American Skiing Company* 130 32,500 370 92,500 -- --
Berjaya Sports 9,000 23,024 17,000 43,489 3,000 7,674
Capital Radio* 8,200 66,669 12,800 104,069 2,300 18,700
Granada Group PLC* 14,178 216,572 25,604 391,108 4,480 68,433
Hollywood Entertainment Corporation* -- -- 8,600 91,375 -- --
MGM Grand, Incorporated* -- -- 1,700 61,306 -- --
Sankyo Company, Ltd., Gunma 3,000 43,884 17,000 384,085 3,000 67,780
Sodak Gaming, Incorporated* -- -- 9,800 62,475 800 5,100
The Walt Disney Company 26,419 2,617,132 43,734 4,332,399 6,809 674,517
--------- --------- -------
2,999,781 5,562,806 842,204
</TABLE>
The accompanying notes are an integral part of the financial statements.
126
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PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
LIQUOR: 0.02% 0.01% 0.01%
Carlsberg Brewery* 16,500 $50,906 23,000 $70,960 4,500 $13,884
------ ------ ------
MINING: 0.31% 0.22% 0.10%
Canyon Resources Corporation* -- -- 48,200 57,238 -- --
Cookson Group 29,919 96,810 54,038 174,852 9,455 30,594
English China Clay 32,500 143,062 47,500 209,090 10,500 46,220
Getchell Gold Corporation* 23,800 571,200 40,400 969,600 4,900 117,600
Stillwater Mining Company* -- -- 4,100 68,675 1,100 18,425
------- --------- -------
811,072 1,479,455 212,839
MOBIL HOMES: 0.08% 0.00% 0.00%
Coachmen Industries, Incorporated 4,900 105,656 -- -- -- --
Fleetwood Enterprises, Incorporated 2,300 97,606 -- -- -- --
-------
203,262
NEWSPAPERS: 0.47% 0.33% 0.12%
Times Mirror Company, Series A 16,200 996,300 29,100 1,789,650 2,500 153,750
Ver Ned Uitgevers* 8,700 245,427 15,150 427,381 3,200 90,272
--------- --------- -------
1,241,727 2,217,031 244,022
NON-FERROUS METALS: 0.18% 0.13% 0.07%
Billiton PLC* 55,000 140,926 100,600 257,767 17,500 44,840
Imco Recycling, Incorporated 7,100 114,044 10,200 163,838 2,000 32,125
Pechiney 4,154 163,993 7,488 295,613 1,283 50,651
WMC, Ltd. 18,435 64,280 33,018 115,129 5,772 20,126
------- ------- -------
483,243 832,347 147,742
OFFICE FURNISHINGS & SUPPLIES: 0.02% 0.02% 0.01%
Ikon Office Solutions, Incorporated 2,200 61,875 3,900 109,688 600 16,875
------ ------- ------
PAPER: 2.81% 1.95% 0.87%
Boise Cascade Corporation 13,900 420,475 23,800 719,950 3,600 108,900
Bowater, Incorporated 8,500 377,719 15,200 675,450 2,100 93,319
Chesapeake Corporation 12,000 412,500 21,000 721,875 3,200 110,000
Domtar, Incorporated 5,400 37,463 -- -- -- --
Fort James Corporation 49,912 1,641,384 71,362 2,729,596 10,375 396,844
Jefferson Smurfit Corporation* -- -- 3,300 46,612 500 7,062
Kimberly Clark Corporation 31,000 1,528,688 55,100 2,717,119 8,900 438,881
Minnesota Mining & Manufacturing Company 28,400 2,330,575 49,200 4,037,475 6,600 541,613
Pope & Talbot, Incorporated 16,400 247,025 32,800 494,050 2,900 43,681
Stone Container Corporation -- -- -- -- 400 4,175
Willamette Industries, Incorporated 11,000 354,062 18,200 585,813 2,200 70,812
UPM-Kymmene Oyj* 4,800 95,983 8,700 173,970 1,000 19,997
--------- ---------- ---------
7,445,874 12,901,910 1,835,284
PETROLEUM & NATURAL GAS: 0.55% 0.34% 0.15%
Anadarko Petroleum Corporation 6,000 364,125 5,200 315,575 1,100 66,756
Burlington Resources, Incorporated 5,500 246,469 6,300 282,319 1,200 53,775
Elf Aquitaine* 2,700 314,032 4,900 569,909 900 104,677
ENI SPA* 19,000 107,727 34,300 194,477 6,000 34,019
Monument Oil & Gas PLC* 26,900 37,114 48,700 67,191 8,500 11,728
Occidental Petroleum Corporation -- -- 7,000 205,188 1,300 38,106
Santa Fe Energy Resources, Incorporated* -- -- 14,400 162,000 -- --
Union Pacific Resource Group, Incorporated 4,000 97,000 7,200 174,600 -- --
Vastar Resources, Incorporated 8,300 296,725 8,300 296,725 -- --
--------- --------- -------
1,463,192 2,267,984 309,061
</TABLE>
The accompanying notes are an integral part of the financial statements.
127
<PAGE> 166
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PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
PETROLEUM SERVICES: 1.72% 1.26% 0.68%
Broken Hill Proprietary Company, Ltd. 10,168 $94,435 18,344 $170,369 3,202 $29,738
Diamond Offshore Drilling, Incorporated 2,100 101,063 2,300 110,687 800 38,500
Dresser Industries, Incorporated 6,600 276,788 11,300 473,894 3,100 130,006
Halliburton Company 8,700 451,856 17,600 914,100 4,000 207,750
Noble Drilling Corporation* 6,000 183,750 16,300 499,187 1,300 39,813
Schlumberger, Ltd. 4,100 330,050 7,300 587,650 1,100 88,550
Total SA, ADR 30,346 1,684,203 46,628 2,587,854 8,789 487,790
Total SA, B Shares 5,872 639,056 10,216 1,111,819 1,783 194,046
Transocean Offshore, Incorporated 5,600 269,850 23,700 1,142,044 1,400 67,463
Western Atlas, Incorporated* 6,000 444,000 7,900 584,600 1,500 111,000
Woodside Petroleum 13,700 96,611 22,400 157,963 4,300 30,323
--------- --------- ---------
4,571,662 8,340,167 1,424,979
PHOTOGRAPHY: 0.18% 0.12% 0.07%
Canon, Incorporated 11,000 256,108 19,000 442,368 3,000 69,848
Fuji Photo Film Company 6,000 229,762 10,000 382,936 2,000 76,587
------- ------- -------
485,870 825,304 146,435
PLASTICS: 0.10% 0.10% 0.03%
Sealed Air Corporation* 4,100 253,175 10,600 654,550 1,000 61,750
------- ------- ------
POLLUTION CONTROL: 0.22% 0.24% 0.11%
Republic Industries, Incorporated* 2,700 62,944 11,300 263,431 1,000 23,312
Sevenson Environmental
Services, Incorporated 4,320 52,920 7,520 92,120 -- --
USA Waste Services, Incorporated* 11,990 470,607 30,870 1,211,648 5,175 203,119
------- --------- -------
586,471 1,567,199 226,431
PUBLISHING: 0.17% 0.11% 0.02%
Meredith Corporation 900 32,119 -- -- -- --
Playboy Enterprises, Incorporated, Class B* 14,800 232,175 15,600 244,725 -- --
Time Warner, Incorporated* 3,100 192,200 8,300 514,600 800 49,600
------- ------- ------
456,494 759,325 49,600
RAILROADS & EQUIPMENT: 0.67% 0.31% 0.19%
CSX Corporation 14,800 799,200 15,700 847,800 1,800 97,200
Canadian National Railway Company 4,900 231,525 -- -- -- --
East Japan Railway 22 99,242 40 180,440 3 13,533
Norfolk Southern Corporation 20,700 637,819 34,200 1,053,787 8,100 249,581
Wisconsin Central Transportation Corporation -- -- -- -- 1,800 42,075
--------- --------- -------
1,767,786 2,082,027 402,389
REAL ESTATE: 0.16% 0.11% 0.06%
Mitsubishi Estate 14,000 152,256 25,000 271,885 4,000 43,502
Mitsui Fudosan Company, Ltd. 8,000 77,200 14,000 135,100 3,000 28,950
Sun Hung Kai Properties 27,000 188,153 48,000 334,495 8,000 55,749
------- ------- -------
417,609 741,480 128,201
RETAIL GROCERY: 0.40% 0.35% 0.14%
Giant Foods, Incorporated, Class A 6,900 232,444 17,000 572,688 2,900 97,694
Safeway* 3,900 246,675 11,700 740,025 700 44,275
Somerfield PLC* 41,800 144,178 75,000 258,694 13,100 45,185
Starbucks Corporation* 11,600 445,150 19,900 763,662 3,000 115,125
--------- --------- -------
1,068,447 2,335,069 302,279
</TABLE>
The accompanying notes are an integral part of the financial statements.
128
<PAGE> 167
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PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
RETAIL TRADE: 3.20% 2.15% 1.03%
Ahold Kon* 3,539 $92,330 6,308 $164,571 927 $24,185
Amway Malaysia* 16,000 26,533 29,000 48,091 2,000 3,317
AutoZone, Incorporated* 2,500 72,500 4,400 127,600 700 20,300
Boots Company 7,000 100,776 12,600 181,396 2,200 31,672
Cheung Kong (Holdings), Ltd. 22,000 144,083 39,000 255,420 7,000 45,845
Colruyt SA* 150 76,617 250 127,696 50 25,539
Consolidated Stores Corporation* 7,812 343,240 12,031 528,612 2,656 116,698
CVS Corporation 29,300 1,877,031 55,900 3,581,094 8,700 557,344
Dayton Hudson Corporation 5,400 364,500 -- -- 400 27,000
Dixons Group 6,453 64,760 11,676 117,177 2,049 20,563
Federated Department Stores, Incorporated* 2,400 103,350 5,100 219,619 600 25,837
Footstar, Incorporated* 4,203 112,956 10,997 295,544 2,216 59,555
Gadzooks, Incorporated* 5,300 111,300 -- -- -- --
Haverty Furniture Companies, Incorporated 5,600 75,600 -- -- -- --
The Home Depot, Incorporated 22,050 1,298,194 40,950 2,410,931 5,250 309,094
Ito-Yokado Company, Ltd. 4,000 203,722 7,000 356,514 1,000 50,930
Kingfisher 14,189 198,096 25,691 358,678 4,449 62,114
Lillian Vernon Corporation 4,500 74,813 10,500 174,562 2,500 41,562
Lowes Companies, Incorporated 11,100 529,331 19,600 934,675 2,900 138,294
Mitsubishi Corporation 11,000 86,773 20,000 157,770 3,000 23,665
Mitsui & Company 17,000 100,513 33,000 195,114 6,000 35,475
New World Development Company 16,609 57,442 28,584 98,858 6,361 22,000
Proffitts, Incorporated* 11,252 319,979 19,380 551,119 980 27,869
Takashimaya Company 9,000 54,454 17,000 102,857 3,000 18,151
TJX Companies, Incorporated 13,800 474,375 18,400 632,500 2,400 82,500
Wal-Mart Stores, Incorporated 38,800 1,530,175 66,300 2,614,706 10,300 406,206
--------- ---------- ---------
8,493,443 14,235,104 2,175,715
SAVINGS & LOAN: 0.85% 0.64% 0.26%
Astoria Financial Corporation 12,800 713,600 27,400 1,527,550 6,000 334,500
Commercial Federal Corporation 11,925 424,083 21,825 776,152 4,725 168,033
Greenpoint Financial Corporation -- -- 800 58,050 -- --
Long Island Bancorp, Incorporated 3,000 148,875 -- -- 300 14,887
TCF Financial Corporation 6,600 223,987 24,200 821,287 -- --
Washington Federal, Incorporated 17,800 559,588 18,100 569,019 -- --
Washington Mutual, Incorporated 2,900 185,056 8,200 523,262 600 38,288
--------- --------- -------
2,255,189 4,275,320 555,708
SHIPBUILDING: 0.04% 0.01% 0.07%
Anangel American Shipholdings, Ltd., ADR 5,000 43,750 7,700 67,375 2,700 23,625
Avondale Industries, Incorporated -- -- -- -- 3,100 92,031
West Marine, Incorporated* 2,600 58,175 -- -- 1,400 31,325
------- ------ -------
101,925 67,375 146,981
SOFTWARE: 2.27% 1.49% 0.69%
BMC Software, Incorporated* -- -- 1,800 118,125 -- --
Cadence Design System, Incorporated -- -- -- -- 800 19,600
Electronic Arts* -- -- 1,700 64,281 200 7,563
HBO & Company -- -- -- -- 600 28,800
Micro Focus Group, Incorporated PLC, ADR* 1,500 60,562 -- -- -- --
Microsoft Corporation* 35,300 4,562,525 60,800 7,858,400 8,900 1,150,325
Oracle Systems Corporation* 15,400 343,613 26,550 592,397 4,087 91,191
Peoplesoft, Incorporated* 12,600 491,400 21,600 842,400 2,200 85,800
Policy Management Systems Corporation* 3,100 215,644 -- -- 400 27,825
</TABLE>
The accompanying notes are an integral part of the financial statements.
129
<PAGE> 168
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Software - continued
Synopsys, Incorporated* 9,500 $ 339,625 11,400 $ 407,550 1,400 $ 50,050
--------- --------- ---------
6,013,369 9,883,153 1,461,154
STEEL: 0.10% 0.07% 0.02%
Amcast Industrial Corporation 5,400 123,862 6,500 149,094 -- --
Nippon Steel Corporation 38,000 56,169 70,000 103,469 12,000 17,738
Sumitomo Metal Industry 75,000 95,926 152,000 194,409 24,000 30,696
------- ------- ------
275,957 446,972 48,434
TELECOMMUNICATION SERVICES: 0.34% 0.32% 0.12%
Arch Communications Group, Incorporated* -- -- -- -- 600 3,075
China Telecom (Hong Kong)* 38,000 65,221 70,000 120,144 12,000 20,596
Ericsson Telecommunications 5,600 210,532 10,100 379,709 1,800 67,671
France Telecom SA* 3,382 122,670 6,482 235,112 1,132 41,059
Heartland Wireless Communications,
Incorporated* -- -- -- -- 500 875
ICG Communications, Incorporated* 1,300 35,425 -- -- -- --
Lucent Technologies, Incorporated 2,481 198,170 3,642 290,905 1,024 81,792
Omnipoint Corporation* -- -- -- -- 300 6,975
Portugal Telecom SA* 1,300 60,320 2,300 106,721 400 18,560
Superior Telecom, Incorporated* 3,900 134,794 25,500 881,344 -- --
Telstra Corporation, Ltd.* 29,400 62,083 57,300 120,998 9,200 19,428
------- --------- -------
889,215 2,134,933 260,031
TELEPHONE: 5.33% 3.65% 1.80%
360 Communications Company* -- -- 3,100 62,581 600 12,113
Ameritech Corporation 7,200 579,600 13,800 1,110,900 2,300 185,150
American Telephone & Telegraph
Corporation 43,000 2,633,750 61,200 3,748,500 8,500 520,625
BellSouth Corporation 5,400 304,088 8,400 473,025 1,500 84,469
British Telecommunication 18,000 141,832 32,400 255,298 5,600 44,126
Cincinnati Bell, Incorporated -- -- -- -- 1,000 31,000
Deutsche Telekom* 10,900 205,100 19,650 369,745 3,400 63,976
GTE Corporation 10,700 559,075 25,900 1,353,275 3,500 182,875
MCI Communications Corporation 72,500 3,103,906 120,300 5,150,344 17,600 753,500
McLeodUSA, Incorporated* 7,600 243,200 13,500 432,000 1,700 54,400
Nippon Telphone & Telegraph Corporation 76 651,911 139 1,192,311 24 205,867
SBC Communications, Incorporated 4,243 310,800 4,098 300,178 1,700 124,525
Singapore Telecommunications, Ltd.* 54,000 100,599 97,000 180,706 17,000 31,670
Sprint Corporation 2,400 140,700 7,400 433,825 -- --
Tel Save Holdings, Incorporated* 26,300 522,712 38,700 769,163 7,300 145,088
Telecom Italia Mobile* 53,500 246,935 100,500 463,868 17,200 79,045
Telecom Italia Mobile RISP* 91,000 258,751 157,100 446,700 27,800 79,388
Telecom Italia Mobile SPA RISP* 25,000 110,232 44,000 194,008 8,000 35,274
Telecomunicacoes Brasileiras
S/A-Telebras, ADR 2,800 326,025 6,200 721,912 1,400 163,012
Telefonica de Espana SA* 11,000 314,079 19,800 565,343 3,450 98,507
Telekom Malaysia 12,000 35,480 13,000 38,437 4,000 11,827
Teleport Communications Group, Class A* 3,400 186,575 8,000 439,000 1,300 71,338
VodaFone Group 52,758 381,282 95,229 688,220 16,583 119,845
WorldCom, Incorporated* 92,050 2,784,513 160,100 4,843,025 23,100 698,775
---------- ---------- ---------
14,141,145 24,232,364 3,796,395
TIRES & RUBBER: 0.03% 0.02% 0.01%
Bridgestone Corporation 4,000 86,697 7,000 151,719 1,000 21,674
------ ------- ------
</TABLE>
The accompanying notes are an integral part of the financial statements.
130
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
TOBACCO: 1.40% 0.96% 0.41%
BAT Industries PLC 25,056 $228,490 45,295 $413,052 7,815 $71,266
Philip Morris Companies, Incorporated 66,800 3,026,875 115,400 5,229,063 15,100 684,219
RJR Nabisco Holdings Corporation 7,000 262,500 9,900 371,250 1,500 56,250
R.J. Reynolds BHD* 19,000 31,019 34,000 55,508 6,000 9,796
Rothmans Pall Mall* 3,000 23,332 6,000 46,664 1,000 7,778
Swedish Match Company 40,600 135,505 73,300 244,644 12,700 42,387
--------- --------- -------
3,707,721 6,360,181 871,696
TRANSPORTATION: 0.10% 0.09% 0.04%
ASA Holdings, Incorporated 9,500 270,156 20,200 574,438 3,000 85,313
------- ------- ------
TRUCKING & FREIGHT FORWARDING: 0.33% 0.28% 0.10%
Air Express International Corporation 11,850 361,425 31,350 956,175 3,000 91,500
Hartwall* 700 57,788 1,250 103,193 200 16,511
Kirby Corporation* -- -- 5,200 100,425 -- --
Knight Transportation, Incorporated* 3,100 86,025 -- -- -- --
NCL Holdings* 46,555 166,407 84,111 300,649 14,666 52,422
Peninsular & Oriental Steam
Navigation Company* 13,004 147,911 23,436 266,568 4,135 47,033
U.S. Freightways Corporation 2,000 65,000 3,000 97,500 -- --
------- --------- -------
884,556 1,824,510 207,466
TOTAL COMMON STOCKS (COST:
$151,539,573, $259,021,934 and
$38,255,958, respectively) $191,720,563 $331,810,034 $50,444,258
----------- ----------- ----------
PREFERRED STOCKS: 2.33% 1.69% 0.14%
APPAREL & TEXTILES: 0.07% 0.05% 0.03%
Hugo Boss AG 150 191,779 250 319,631 50 63,926
------- ------- ------
BROADCASTING: 0.80% 0.59%
American Radio Systems Corporation, Series B 586 69,807 325 38,716 -- --
Cablevision Systems Corporation, Series H* 320 38,016 651 77,377 -- --
Cablevision Systems Corporation, Series M* 7,294 844,325 15,524 1,796,912 -- --
Capstar Broadcasting Partners* 6,593 759,843 9,986 1,150,887 -- --
Citadel Broadcasting Company* 1,700 198,475 3,550 414,462 -- --
Echostar Communications Corporation* 200 208,500 386 402,405 -- --
SFX Broadcasting, Incorporated, Series E -- -- 159 18,219 -- --
--------- ---------
2,118,966 3,898,978
COMPUTERS & BUSINESS EQUIPMENT: 0.00% 0.00%
Hyperion Telecommunications, Series B* 10 10,100 24 24,240 -- --
------ ------
DRUGS & HEALTH CARE: 0.04% 0.03% 0.02%
Wella AG* 150 113,816 250 189,694 50 37,939
------- ------- ------
ELECTRONICS: 0.09% 0.06% 0.03%
Nokia (AB) OY, Series A 3,200 227,190 5,800 411,781 800 56,798
------- ------- ------
FINANCIAL SERVICES: 0.00% 0.00%
S D Warren Company 169 8,323 558 27,482 -- --
----- ------
LEISURE TIME: 0.02% 0.01% 0.01%
Sydney Harbour Casino* 46,900 44,475 84,700 80,321 15,200 14,414
------ ------ ------
</TABLE>
The accompanying notes are an integral part of the financial statements.
131
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------- ------------------------ -------------------------
Shares Value Shares Value Shares Value
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
MISCELLANEOUS: 0.24% 0.15%
Nextel Communications,
Incorporated, Series D* 480 $539,146 634 $711,406 -- --
Winstar Corporation* 1,000 100,000 2,750 275,000 -- --
------- -------
639,146 986,406
PUBLISHING: 0.55% 0.52%
Intermedia Communications,
Incorporated, Series B* 3,763 456,246 7,650 927,532 -- --
Nextlink Communications* 7,363 458,347 19,126 1,190,594 -- --
Primedia, Incorporated, Series E* 800 80,200 1,600 160,400 -- --
Primedia, Incorporated, Series D* 390 41,145 1,100 116,050 -- --
Time Warner, Incorporated, Series M* 387 434,991 927 1,043,055 -- --
--------- ---------
1,470,929 3,437,631
SOFTWARE: 0.15% 0.11% 0.06%
Sap AG 1,250 408,919 2,250 736,054 400 $130,854
------- ------- -------
TELECOMMUNICATION SERVICES: 0.32% 0.13%
American Communications Services* -- -- 29 30,232 -- --
IXC Communications, Incorporated* 720 844,200 720 844,200 -- --
------- -------
844,200 874,432
TELEPHONE: 0.04% 0.04%
Adelphia Communications
Corporation, Series B* 904 107,802 2,048 244,224 -- --
------- -------
TOTAL PREFERRED STOCK
(COST: $5,421,277, $9,801,442,
and $259,287, respectively) $6,185,645 $11,230,874 $303,931
--------- ---------- -------
WARRANTS:* 0.02% 0.03%
BUSINESS SERVICES: 0.00% 0.01%
Protection One, Incorporated (Expiration
date 06/30/05; strike price $6.60) 960 12,480 3,200 41,600 -- --
------ ------
CHEMICALS: 0.00% 0.00%
Sterling Chemicals Holdings, Incorporated
(Expiration date 08/05/08; strike
price $0.01) 40 1,400 120 4,200 -- --
----- -----
TELECOMMUNICATION SERVICES: 0.02% 0.02%
Highwaymaster Communication (Expiration
date 05/14/98; strike price $6.50) 162 18 338 37 -- --
Hyperion Telecommunications, Incorporated
(Expiration date 04/15/01; strike
price $0.0187) 220 13,200 830 49,800 -- --
Microcell Telecommunications, Incorporated
(Expiration date 06/15/06; strike
price $0.01) 1,280 17,472 3,760 51,324 -- --
(Expiration date 06/15/06; strike
price $0.01) 1,280 13 3,760 38 -- --
Orion Network Systems, Incorporated
(Expiration date 01/15/07;
strike price $0.01) 150 1,875 260 3,250 -- --
Powertel, Incorporated (Expiration date
02/01/06; strike price $18.15) 1,312 11,808 3,488 31,392 -- --
------ ------
44,386 135,841
TOTAL WARRANTS (COST: $13,082,
$36,385,and $0, respectively) $58,266 $181,641 --
------ -------
</TABLE>
The accompanying notes are an integral part of the financial statements.
132
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS: 5.41% 6.87% 22.88%
U.S. TREASURY BILLS: 0.87% 0.98% 11.85%
zero coupon due 01/08/98**** $2,300,000 $2,298,298 $6,500,000 $6,495,190 $25,000,000 $24,981,500
--------- --------- ----------
U.S. TREASURY BONDS: 1.33% 4.73% 7.98%
6.50% due 11/15/26 360,000 384,300 -- -- 125,000 133,437
7.125% due 02/15/23 770,000 879,001 1,760,000 2,009,146 920,000 1,050,235
7.625% due 02/15/25 -- -- 75,000 91,019 40,000 48,544
8.125% due 08/15/19 -- -- -- -- 751,000 939,689
8.875% due 02/15/19 704,000 941,818 8,620,000 11,531,922 5,716,000 7,646,922
9.00% due 11/15/18 -- -- 2,120,000 2,863,993 350,000 472,829
10.75% due 05/15/03 67,000 82,232 72,000 88,368 -- --
11.625% due 11/15/04 -- -- 330,000 438,022 240,000 318,562
12.00% due 08/15/13 170,000 250,485 7,970,000 11,743,317 2,690,000 4,361,382
12.375% due 05/15/04 304,000 409,734 1,288,000 1,735,979 171,000 230,475
12.75% due 11/15/10 373,000 532,398 630,000 899,224 1,137,000 1,622,886
13.875% due 05/15/11 30,000 45,652 -- -- -- --
--------- ---------- ----------
3,525,620 31,400,990 16,824,961
U.S. TREASURY NOTES: 3.21% 1.16% 3.05%
5.75% due 10/31/00 3,150,000 3,153,937 -- -- -- --
6.125% due 03/31/98 -- -- -- -- 3,980,000 3,986,209
6.875% due 03/31/00 2,400,000 2,459,256 5,055,000 5,179,808 2,390,000 2,449,009
7.00% due 07/15/06 2,105,000 2,272,074 -- -- -- --
7.75% due 12/31/99 -- -- 2,404,000 2,497,540 -- --
7.875% due 08/15/01 600,000 641,436 -- -- -- --
--------- --------- ---------
8,526,703 7,677,348 6,435,218
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $13,957,289, $43,627,297 and
$47,157,642, respectively) $14,350,621 $45,573,528 $48,241,679
---------- ---------- ----------
U.S GOVERNMENT AGENCY AND
MORTGAGE-BACKED OBLIGATIONS: 7.97% 15.26%
FEDERAL AGRICULTURAL MORTGAGE CORPORATION: 0.13% 0.15%
7.04% due 08/10/05 -- -- 800,000 848,128 300,000 318,048
------- -------
FEDERAL HOME LOAN BANK: 0.24% 0.33%
7.59% due 03/10/05 -- -- 280,000 304,937 120,000 130,687
9.50% due 02/25/04 -- -- 1,130,000 1,331,987 470,000 554,013
--------- -------
1,636,924 684,700
FEDERAL HOME LOAN MORTGAGE CORPORATION: 0.99% 1.81%
6.50% due 07/01/06 - 08/15/14 -- -- -- -- 21,525 21,595
8.00% due 04/01/23 - 08/01/24 -- -- 2,374,601 2,464,058 1,351,051 1,404,205
9.50% due 12/01/19 - 12/01/22 -- -- 3,806,095 4,121,365 2,219,514 2,396,268
--------- ---------
6,585,423 3,822,068
FEDERAL NATIONAL MORTGAGE ASSOCIATION: 4.97% 8.36%
6.00% due 12/01/08 - 04/01/11 -- -- 7,082,520 6,998,101 2,326,685 2,300,777
6.50% due 09/01/07 - 05/01/26 -- -- 10,682,656 10,629,043 5,383,539 5,365,900
7.00% due 12/01/99 - 12/01/25 -- -- 8,325,464 8,395,090 4,487,626 4,524,675
7.49% due 03/02/05 -- -- 470,000 508,996 200,000 216,594
7.50% due 11/01/06 - 10/01/27 -- -- 5,678,966 5,813,930 3,935,701 4,030,147
7.71% due 04/25/00 -- -- -- -- 320,639 321,440
8.50% due 05/01/17 - 06/01/24 -- -- 574,195 604,480 836,488 879,692
---------- ----------
32,949,640 17,639,225
</TABLE>
The accompanying notes are an integral part of the financial statements.
133
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION: 1.09% 2.51%
7.50% due 10/15/22 - 07/01/23 -- -- $3,273,751 $3,363,216 $2,053,997 $2,110,401
9.00% due 09/15/16 - 11/15/24 -- -- 3,565,461 3,847,003 2,952,931 3,176,200
--------- ---------
7,210,219 5,286,601
OTHER: 0.55% 2.10%
Government Backed Trust,
9.625% due 05/15/02 -- -- 175,910 186,776 73,296 77,823
Government Loan Trust,
8.50% due 04/01/06 -- -- 1,120,000 1,235,517 1,720,000 1,897,401
Government Trust Certificates,
Class 1C, 9.25% due 11/15/01 -- -- 434,803 462,700 510,875 543,653
Class 2E, 9.40% due 05/15/02 -- -- 1,083,624 1,151,101 1,548,035 1,644,431
Guaranteed Export Trust,
Series 1993 C, 5.20% due 10/15/04 -- -- 197,867 194,571 87,733 86,272
Series 1993 D, 5.23% due 05/15/05 -- -- 344,680 338,842 153,191 150,596
6.61% due 09/15/99 -- -- 74,245 74,749 30,373 30,579
--------- ---------
3,644,256 4,430,755
TOTAL U.S. GOVERNMENT AGENCY AND
MORTGAGE-BACKED OBLIGATIONS
(Cost: $0, $51,688,820 and
$31,508,861, respectively) -- $52,874,590 $32,181,397
---------- ----------
FOREIGN BOND OBLIGATIONS: 0.56% 1.46%
Israel Export Trust, Series 1994-1
GTD Certificates, 6.88% due 01/26/03 -- -- 362,353 369,042 155,294 158,161
Israel State, U.S. Government GTD Notes,
Class 1D, 6.125% due 03/15/03 -- -- -- -- 250,000 251,367
Class 4A, 7.125% due 08/15/99 -- -- -- -- 355,000 360,911
Class 5B, 8.00% due 11/15/01 -- -- 3,155,000 3,381,119 2,150,000 2,304,091
--------- ---------
3,750,161 3,074,530
TOTAL FOREIGN BOND OBLIGATIONS
(Cost: $0, $3,699,331 and
$2,989,519, respectively) -- $3,750,161 $3,074,530
--------- ---------
CORPORATE BONDS: 6.71% 15.57% 16.72%
AEROSPACE: 0.17% 0.14%
Advance Agro Public Company, Ltd.,
13.00% due 11/15/07 $490,000 $445,900 1,010,000 919,100 -- --
------- -------
AUTO PARTS: 0.10%
Safelite Glass Corpopration,
9.875% due 12/15/06 250,000 263,750 -- -- -- --
-------
BANKING: 2.31% 4.07%
Banc One Corporation,
6.25% due 09/01/00 -- -- 880,000 885,685 490,000 493,165
6.70% due 03/24/00 -- -- 860,000 869,365 430,000 434,683
Banponce Corporation,
5.75% due 03/01/99 -- -- 490,000 487,173 270,000 268,442
6.378% due 4/08/99 -- -- 590,000 592,129 330,000 331,191
6.665% due 03/05/01 -- -- 820,000 826,314 430,000 433,311
</TABLE>
The accompanying notes are an integral part of the financial statements.
134
<PAGE> 173
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
BANKING - CONTINUED
Canadian Imperial Bank of Commerce,
6.20% due 08/01/00 -- -- $1,050,000 $1,051,166 $590,000 $590,655
Capital One Bank, 6.42% due 11/12/99 -- -- 3,380,000 3,390,343 1,600,000 1,604,896
Den Danske Bank Aktieselskab,
7.40% due 06/15/10 -- -- 830,000 859,930 460,000 476,588
First Tennessee National Corporation,
6.75% due 11/15/05 -- -- 350,000 355,418 190,000 192,941
First USA Bank, 5.75% due 01/15/99 -- -- 840,000 837,388 660,000 657,947
Firstar Corporation, 7.15% due 09/01/00 -- -- 820,000 824,756 360,000 362,088
Fleet Financial Group, Incorporated,
7.625% due 12/01/99 -- -- 150,000 153,688 80,000 81,967
Kansallis-Osake-Pankki,
10.00% due 05/01/02 -- -- 360,000 409,100 150,000 170,458
Long Island Savings Bank,
7.00% due 06/13/02 -- -- 450,000 459,184 270,000 275,511
Provident Bank, 6.125% due 12/15/00 -- -- 1,040,000 1,035,143 520,000 517,572
Shawmut National Corporation,
8.625% due 12/15/99 -- -- -- -- 360,000 375,523
Union Planters Corporation,
6.75% due 11/01/05 -- -- 850,000 855,338 450,000 452,826
Union Planters National Bank,
6.29% due 08/20/98 -- -- 1,400,000 1,401,750 870,000 871,088
---------- ---------
15,293,870 8,590,852
BROADCASTING: 0.45% 0.51% 0.19%
Citadel Broadcasting Company,
10.25% due 07/01/07 $390,000 $422,175 810,000 876,825 -- --
EchoStar Communications Corporation,
Step up to 13.125% due 06/01/04 240,000 219,600 650,000 594,750 -- --
EchoStar Satellite Broadcasting Corporation,
Step up to 13.125% due 03/15/04 370,000 307,100 1,050,000 871,500 -- --
Granite Broadcasting Corporation,
9.375% due 12/01/05 250,000 253,125 250,000 253,125 -- --
Hearst-Argyle Television, Incorporated,
7.50% due 11/15/27 -- -- 770,000 781,334 400,000 405,888
--------- --------- -------
1,202,000 3,377,534
BUSINESS SERVICES: 0.19% 0.73% 0.82%
Comdisco, Incorporated,
5.75% due 02/15/01 -- -- 1,700,000 1,671,814 1,000,000 983,420
6.50% due 06/15/00 -- -- 1,700,000 1,708,075 750,000 753,562
Federal Data Corporation,
10.125% due 08/01/05 170,000 171,700 370,000 373,700 -- --
Protection One Alarm, Incorporated,
Step up to 13.625% due 06/30/05 300,000 322,500 1,000,000 1,075,000 --
------- --------- ---------
494,200 4,828,589 1,736,982
CHEMICAL PRODUCTS: 0.13% 0.14%
Huntsman Corporation,
9.50% due 07/01/07 210,000 220,500 540,000 567,000 -- --
Sterling Chemicals, Incorporated,
11.25% due 04/01/07 130,000 130,000 350,000 350,000 -- --
------- -------
350,500 917,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
135
<PAGE> 174
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CRUDE PETROLEUM & NATURAL GAS 0.06% 0.28% 0.41%
Occidental Petroleum Corporation,
5.93% due 11/09/98 -- -- $470,000 $469,154 $270,000 $269,514
Southwest Gas Corporation,
9.75% due 06/15/02 -- -- 290,000 326,595 170,000 191,452
Stone Energy Corporation,
8.75% due 09/15/07 $160,000 $161,600 340,000 343,400 -- --
Union Oil Company, 7.67% due 04/19/02 -- -- 680,000 718,440 390,000 412,047
------- --------- -------
161,600 1,857,589 873,013
DRUGS & HEALTH CARE: 0.09% 0.08%
Integrated Health Services, Incorporated,
9.25% due 01/15/08 246,000 250,920 520,000 530,400 -- --
------- -------
ELECTRIC UTILITIES: 0.06% 0.42% 0.66%
Avon Energy Partners Holdings,
6.73% due 12/11/02 -- -- 930,000 936,417 520,000 523,588
British Columbia Hydro & Power,
12.50% due 01/15/14 -- -- 460,000 506,635 260,000 286,359
Israel Electric Corporation,
7.10% due 12/17/07 -- -- 1,025,000 1,032,195 580,000 584,072
Trench Electric & Trench, Incorporated
10.25% due 12/15/07 160,000 162,400 340,000 345,100 -- --
------- --------- ---------
162,400 2,820,347 1,394,019
ELECTRICAL EQUIPMENT: 0.19% 0.16%
High Voltage Engineer Corporation,
10.50% due 08/15/04 320,000 332,000 680,000 705,500 -- --
SC International Services, Incorporated,
9.25% due 09/01/07 160,000 165,600 340,000 351,900 -- --
------- ---------
497,600 1,057,400
ELECTRONICS: 0.16% 0.29%
Raytheon Company, 6.45% due 08/15/02 -- -- 1,070,000 1,075,254 600,000 602,946
--------- -------
FINANCIAL SERVICES: 0.46% 3.72% 5.18%
American Telephone and
Telegraph Capital Corporation,
6.16% due 12/03/99 -- -- 2,490,000 2,487,162 1,120,000 1,118,723
6.65% due 04/30/99 -- -- 900,000 906,885 360,000 362,754
Ahmanson Capital Trust I,
8.36% due 12/01/26 -- -- 1,080,000 1,175,234 720,000 783,490
APP Financial II Mauritius, Ltd., Series B,
12.00% due 02/15/04 430,000 369,800 1,070,000 920,200 -- --
BankBoston Capital Trust II, Series B,
7.75% due 12/15/26 -- -- 1,610,000 1,642,538 910,000 928,391
Banponce Financial Corporation,
6.34% due 03/29/99 -- -- 350,000 351,089 200,000 200,622
Beal Financial Corporation,
12.75% due 08/15/00 120,000 128,400 380,000 406,600 --- --
Chrysler Financial Corporation,
6.375% due 01/28/00 -- -- 1,270,000 1,276,083 600,000 602,874
The CIT Group Holdings, Incorporated,
6.25% due 10/04/99 -- -- 3,850,000 3,858,470 1,850,000 1,854,070
</TABLE>
The accompanying notes are an integral part of the financial statements.
136
<PAGE> 175
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - CONTINUED
First Nationwide Escrow Corporation,
10.625% due 10/01/03 $190,000 $212,325 $250,000 $279,375 -- --
First Nationwide Parent Holdings,
12.50% due 04/15/03 250,000 283,750 750,000 851,250 -- --
General Motors Acceptance Corporation,
6.75% due 07/10/02 -- -- 1,050,000 1,063,781 $600,000 $607,875
GST Equipment Funding, Incorporated,
13.25% due 05/01/07 150,000 171,750 300,000 343,500 -- --
Great Western Financial Trust II, Series A,
8.206% due 02/01/27 -- -- 730,000 774,253 410,000 434,854
Heller Financial, Incorporated,
7.875% due 11/01/99 -- -- 1,000,000 1,026,100 540,000 554,094
Home Savings of America,
6.50% due 08/15/04 -- -- 510,000 512,310 290,000 291,314
Hydro Quebec Enterprises,
7.40% due 03/28/25 -- -- 630,000 765,986 360,000 437,706
Manufacturers Hanover Corporation,
8.50% due 02/15/99 -- -- 1,540,000 1,577,853 210,000 215,162
MCN Investment Corporation,
5.84% due 02/01/99 -- -- 800,000 800,480 440,000 440,264
Ocwen Capital Trust,
10.875% due 08/01/27 50,000 54,250 130,000 141,050 -- --
Secured Finance, 9.05% due 12/15/04 -- -- 2,500,000 2,854,675 1,480,000 1,689,968
U.S. West Capital Funding, Incorporated,
6.95% due 01/15/37 -- -- 640,000 659,245 380,000 391,427
--------- ---------- ----------
1,220,275 24,674,119 10,913,588
FOOD PRODUCTS: 0.01% 0.01%
Del Monte Foods Company,
Step up to 12.50% due 12/15/07 50,000 28,625 90,000 51,525 -- --
------ ------
FURNITURE & FIXTURES: 0.01% 0.01%
Sealy Mattress Company,
9.875% due 12/15/07 10,000 10,250 20,000 20,500 -- --
Step up to 10.875% due 12/15/07 20,000 12,100 40,000 24,200 -- --
------ ------
22,350 44,700
HOTELS & RESTAURANTS: 0.07% 0.26%
Darden Restaurants, Incorporated,
7.125% due 02/01/16 -- -- 490,000 470,719 570,000 547,571
------- -------
INDUSTRIALS: 1.36% 1.66% 1.07%
Advanced Accessory System LLC,
9.75% due 10/01/07 130,000 127,725 410,000 402,825 -- --
Anker Coal Group, Incorporated,
9.75% due 10/01/07 140,000 140,700 310,000 311,550 -- --
Atlantis Group, Incorporated,
11.00% due 02/15/03 50,000 52,500 130,000 136,500 -- --
Carson, Incorporated,
10.375% due 03/01/07 160,000 160,000 340,000 340,000 -- --
Color Spot Nursuries,
10.50% due 12/15/07 100,000 101,250 210,000 212,625 -- --
</TABLE>
The accompanying notes are an integral part of the financial statements.
137
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INDUSTRIALS - CONTINUED
Conagra, Incorporated,
7.125% due 10/01/26 -- -- $1,000,000 $1,061,990 $575,000 $610,644
Container Corporation of America,
9.75% due 04/01/03 $90,000 $96,750 200,000 215,000 -- --
10.75% due 05/01/02 120,000 131,400 250,000 273,750 -- --
11.25% due 05/01/04 90,000 98,100 300,000 327,000 -- --
Decision Holdings Corporation,
Step up to 11.50% due 08/01/08 10,000 6,400 40,000 25,600 -- --
Desa International, Incorporated,
9.875% due 12/15/07 80,000 81,900 180,000 184,275 -- --
E&S Holdings Corporation,
10.375% due 10/01/06 30,000 27,300 120,000 109,200 -- --
Flores and Rucks, Incorporated,
9.75% due 10/01/06 170,000 186,575 230,000 252,425 -- --
Freedom Chemical Company,
10.625% due 10/15/06 260,000 286,000 590,000 649,000 -- --
Holmes Products Corporation
9.875% due 11/15/07 80,000 81,400 170,000 172,975 -- --
Host Marriott Travel Plazas, Incorporated,
Series B, 9.50% due 05/15/05 150,000 159,750 350,000 372,750 -- --
Internorth Incorporated,
9.625% due 03/15/06 -- -- 590,000 701,711 330,000 392,482
Livent, Incorporated, 9.375% due 10/15/04 330,000 330,000 690,000 690,000 -- --
McCaw International, Ltd.,
13.00% due 04/15/07 250,000 145,000 250,000 145,000 -- --
McKesson Corporation,
6.60% due 03/01/00 -- -- 950,000 959,718 440,000 444,501
Motors and Gears, Incorporated, Series B,
10.75% due 11/15/06 260,000 276,250 740,000 786,250 -- --
Pathmark Stores, Incorporated,
9.625% due 05/01/03 210,000 193,200 360,000 331,200 -- --
Pennzoil Company,
9.625% due 11/15/99 -- -- 540,000 570,181 310,000 327,326
Perry-Judds, Incorporated,
10.625% due 12/15/07 10,000 10,400 30,000 31,200 -- --
Pueblo Xtra International, Incorporated,
9.50% due 08/01/03 260,000 247,000 40,000 38,000 -- --
Repap New Brunswick, Incorporated,
9.875% due 07/15/00 40,000 40,200 120,000 120,600 -- --
Roller Bearing Company of America,
Incorporated, Step up to
13.00% due 06/15/09 240,000 146,400 510,000 311,100
Stone Container Corporation,
12.58% due 08/01/16 250,000 263,750 -- -- -- --
Town Sports International, Incorporated,
9.75% due 10/15/04 190,000 190,000 410,000 410,000 -- --
WMX Technologies, Incorporated,
7.10% due 08/01/26 -- -- 830,000 858,353 470,000 486,055
Wyman-Gordon Company,
8.00% due 12/15/07 20,000 20,150 30,000 30,225 -- --
--------- ---------- ---------
3,600,100 11,031,003 2,261,008
</TABLE>
The accompanying notes are an integral part of the financial statements.
138
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INSURANCE: 0.77% 1.32%
Metropolitan Life Insurance Company,
6.30% due 11/03/03 -- -- $2,350,000 $2,328,169 $1,155,000 $1,144,270
Nationwide Life Insurance Company,
6.50% due 02/15/04 -- -- 2,760,000 2,771,978 1,630,000 1,637,074
--------- ---------
5,100,147 2,781,344
LEISURE TIME: 0.83% 0.72%
AMC Entertainment, Incorporated,
9.50% due 03/15/09 $250,000 $256,250 750,000 768,750 -- --
American Skiing Company, Series B,
12.00% due 07/15/06 500,000 555,000 900,000 999,000 -- --
AMF Bowling Worldwide, Incorporated,
Series B, 10.875% due 03/15/06 170,000 184,450 530,000 575,050 -- --
Ballys Health & Tennis Corporation,
9.875% due 10/15/07 390,000 395,850 788,000 799,820 -- --
Hollywood Entertainment Corporation,
Series B, 10.625% due 08/15/04 450,000 441,000 970,000 950,600 -- --
Hollywood Theaters, Incorporated,
10.625% due 08/01/07 160,000 170,000 360,000 382,500 -- --
Six Flags Theme Parks, Incorporated,
zero coupon due 06/15/05 190,000 202,350 310,000 330,150 -- --
--------- ---------
2,204,900 4,805,870
MISCELLANEOUS: 0.11% 0.15%
HMC Acquisition Properties, Incorporated,
Series B, 9.00% due 12/15/07 280,000 292,600 940,000 982,300 -- --
------- -------
NON-BANK FINANCE: 0.14% 0.19%
Ford Capital BV, 9.00% due 08/15/98 -- -- 920,000 935,760 400,000 406,852
------- -------
PAPER: 0.03% 0.02%
American Pad & Paper Company,
Series B, 13.00% due 11/15/05 60,000 67,800 140,000 158,200 -- --
------ -------
PRINTING & PUBLISHING: 0.33% 0.23%
Sullivan Graphics, Incorporated,
12.75% due 08/01/05 600,000 606,000 1,180,000 1,191,800 -- --
Von Hoffman Press, Incorporated,
10.375% due 05/15/07 240,000 256,800 330,000 353,100 -- --
------- ---------
862,800 1,544,900
REAL ESTATE: 0.20% 0.20%
HMH Properties, Incorporated, Series B,
8.875% due 07/15/07 230,000 242,075 520,000 547,300 -- --
9.50% due 05/15/05 260,000 276,900 740,000 788,100
------- ---------
518,975 1,335,400
RETAIL TRADE: 0.20% 0.56% 0.70%
Amscan Holdings, Incorporated,
9.875% due 12/15/07 160,000 163,600 340,000 347,650 -- --
Federated Department Stores, Incorporated,
6.79% due 07/15/27 -- -- 550,000 564,723 350,000 359,369
</TABLE>
The accompanying notes are an integral part of the financial statements.
139
<PAGE> 178
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
RETAIL TRADE - CONTINUED
Levi Strauss & Company,
7.00% 11/01/06 -- -- $1,980,000 $2,026,273 $1,080,000 $1,105,240
Sunglass Hut International, Incorporated,
5.25% due 06/15/03 $484,000 $366,025 1,016,000 768,350 -- --
------- --------- ---------
529,625 3,706,996 1,464,609
TELECOMMUNICATION SERVICES: 0.55% 0.51%
Brooks Fiber Properties, Incorporated,
Step up to 10.875% due 03/01/06 220,000 182,600 520,000 431,600 -- --
11.875% due 11/01/06 30,000 23,925 90,000 71,775 -- --
GST Telecommunications, Incorporated,
12.75% due 11/15/07 50,000 52,375 110,000 115,225 -- --
Hyperion Telecommunications, Incorporated,
12.25% due 09/01/04 100,000 110,000 200,000 220,000
Series B, Step up to 13.00% due 04/15/03 220,000 161,150 830,000 607,975 -- --
McLeodUSA, Incorporated,
Step up to 10.50% due 03/01/07 90,000 65,475 190,000 138,225 -- --
Orion Network Systems, Incorporated
11.25% due 01/15/07 150,000 170,250 260,000 295,100 -- --
NEXTLINK Communications,
Incorporated, 9.625% due 10/01/07 30,000 30,975 60,000 61,950 -- --
Winstar Communications, Incorporated,
Step up to 14.00% due 10/15/05 480,000 381,600 1,020,000 810,900 -- --
Winstar Equipment II Corporation,
12.50% due 03/15/04 265,000 295,475 560,000 624,400 -- --
--------- ---------
1,473,825 3,377,150
TELEPHONE: 0.56% 0.51%
Adelphia Communications Corporation,
Series B, 9.25% due 10/01/02 100,000 102,000 200,000 204,000 -- --
Series B, 9.875% due 03/01/07 490,000 515,725 930,000 978,825 -- --
Benedek Communications Corporation,
Step up to 13.25% due 05/15/06 410,000 307,500 1,170,000 877,500 -- --
HighwayMaster Communications,
Incorporated, 13.75% due 09/15/05 160,000 162,400 340,000 345,100 -- --
Microcell Telecommunications, Series B,
Step up to 14.00% due 06/01/06 90,000 60,750 270,000 182,250 -- --
Millicom International Cellular SA,
Step up to 13.50% due 06/01/06 150,000 110,250 290,000 213,150 -- --
NEXTEL Communications, Incorporated,
9.75% due 10/31/07 363,000 222,791 900,000 552,375 -- --
--------- ---------
1,481,416 3,353,200
TOBACCO: 0.48% 0.90%
Philip Morris Companies, Incorporated,
6.95% due 06/01/06 -- -- 1,400,000 1,449,924 850,000 880,311
7.00% due 07/15/05 -- -- 850,000 866,456 480,000 489,293
7.25% due 09/15/01 -- -- 850,000 870,868 520,000 532,766
--------- ---------
3,187,248 1,902,370
</TABLE>
The accompanying notes are an integral part of the financial statements.
140
<PAGE> 179
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
TRANSPORTATION: 0.50% 0.74% 0.66%
Burlington Northern Santa Fe,
7.29% due 06/01/36 -- -- $1,070,000 $1,146,173 $610,000 $653,425
Greyhound Lines, Incorporated, Series B,
11.50% due 04/15/07 $500,000 $553,125 600,000 663,750 -- --
Norfolk Southern Corporation,
7.05% due 05/01/37 -- -- 1,220,000 1,289,467 690,000 729,289
Transtar Holdings L.P., Series B,
Step up to 13.375% due 12/15/03 400,000 350,000 1,100,000 962,500 -- --
U.S. Air, Incorporated,
9.625% due 02/01/01 190,000 195,700 490,000 504,700 -- --
10.00% due 07/01/03 210,000 216,300 355,000 365,650 -- --
--------- --------- ---------
1,315,125 4,932,240 1,382,714
TRANSPORTATION EQUIPMENT: 0.13% 0.14%
Aftermarket Technology Corporation,
Series B, 12.00% due 08/01/04 180,000 199,800 600,000 666,000 -- --
K & F Industries, Incorporated,
9.25% due 10/15/07 10,000 10,250 30,000 30,750 -- --
Newport News Shipbuilding, Incorporated,
9.25% due 12/01/06 130,000 137,475 220,000 232,650 -- --
------- -------
347,525 929,400
TOTAL CORPORATE BONDS
(Cost: $16,917,266, $100,292,106
and $34,738,680, respectively) $17,794,811 $103,297,960 $35,263,756
---------- ----------- ----------
CONVERTIBLE BONDS: 0.09% 0.08%
GST Telecommunications, Incorporated,
Step up to 13.875% due 12/15/05 10,000 9,500 10,000 9,500 -- --
Sunglass Hut International, Incorporated,
5.25% due 06/15/03 320,000 242,000 680,000 514,250 -- --
------- -------
251,500 523,750
TOTAL CONVERTIBLE BONDS
(Cost: $244,400, $507,310
and $0, respectively) $251,500 $523,750 --
-------- --------
FIXED INCOME - OTHER: 0.06% 3.69% 6.84%
MISCELLANEOUS ASSET BACKED SECURITIES: 0.00% 1.02% 1.97%
CPS Auto Grantor Trust,
Series 1997 1 Certificates, Class A,
6.55% due 07/15/02 -- -- 682,232 687,253 404,285 407,261
Series 1996 2 Certificates, Class A,
6.70% due 02/15/02 -- -- 371,011 373,097 209,115 210,291
Dayton Hudson Credit Card Master
Certificates, Series 95 1, Class A
6.25% due 08/25/05 -- -- 870,000 873,463 490,000 491,950
Discover Card Trust, 1992 B,
7.50% due 06/16/00 -- -- 1,330,000 1,334,987 730,000 732,738
Ford Credit Grantor Trust, 1995 B
Certificates, Class A, 5.90% due 10/15/00 -- -- 964,422 963,516 420,839 420,443
MBNA Master Credit Card Trust II,
Series 97 Certificates, Class A,
6.55% due 01/15/07 -- -- 1,720,000 1,758,150 970,000 991,515
</TABLE>
The accompanying notes are an integral part of the financial statements.
141
<PAGE> 180
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
MISCELLANEOUS ASSET
BACKED SECURITIES - CONTINUED
Premier Auto Trust, Series 933, Class A3,
4.90% due 12/15/98 -- -- $151,246 $150,819 $84,418 $84,179
Railcar Trust 1992 1, 7.75% due 06/01/04 -- -- 617,845 648,558 770,835 809,154
--------- ---------
6,789,843 4,147,531
OTHER COLLATERALIZED MORTGAGE OBLIGATIONS: 0.06% 2.67% 4.87%
Airplane Pass Thru Trust, Series 1,
Class D, 10.875% due 03/15/19 $135,000 $156,076 385,000 445,106 -- --
American Housing Trust, Series IV,
9.552% due 09/25/20 -- -- 1,773,996 1,838,121 874,622 906,236
CBM Funding Corporation, Certificates 96 1B,
Class A2, 6.88% due 07/01/07 -- -- 480,000 487,950 270,000 274,472
Class A1, 7.55% due 07/01/04 -- -- 67,697 68,474 38,684 39,128
Contimortgage Home Equity Loan Trust,
Series 1997-4, Class A3,
6.26% VR due 07/15/12 -- -- 880,000 880,000 490,000 490,000
Credit Suisse First Boston Mortgage,
Certificates 1997, 7.27% due 04/18/11 -- -- 990,000 992,784 560,000 561,575
Edison Mission Energy Funding
Corporation, Series A 144A,
6.77% due 09/15/03 -- -- 944,102 953,420 680,317 687,032
First Union Lehman Brothers Mortgage
Trust, Series 1997 C2, Certificates
Class A, 6.65% due 11/18/29 -- -- 1,100,000 1,116,844 620,000 629,494
General Growth Properties, Series 1,
Class A2, 6.602% due 11/15/07 -- -- 710,000 711,839 400,000 401,036
Class D2, 6.992% due 11/15/07 -- -- 760,000 763,815 430,000 432,159
Class E2, 7.224% due 11/15/07 -- -- 450,000 452,255 260,000 261,303
GMAC Commericial Mortgage Security,
Incorporated, Certificates 1997 C2,
Class D, 7.192% VR due 01/15/08 -- -- 270,000 270,000 150,000 150,000
Class E, 7.624% VR due 04/15/11 -- -- 570,000 570,000 320,000 320,000
Green Tree Financial Corporation,
96 8 Series Certificates, Class A2,
6.55% due 10/15/27 -- -- 900,000 901,125 950,000 951,187
97 6 Series, 6.68% due 01/15/29 -- -- 1,230,000 1,243,444 690,000 697,542
GS Mortgage Securities Corporation II,
Certificates Series 97 GL 1,
6.86% due 07/13/30 -- -- 850,000 873,010 470,000 482,723
Meritor Mortgage Securities Corporation,
Certificates 87 1, 9.40% due 06/01/99 -- -- 23,910 23,880 12,584 12,569
Morgan Stanley Capital Income, 97 C1,
Class A1, 7.63% due 12/15/06 -- -- 1,090,000 1,155,400 620,000 657,200
NationsLink Funding Corporation,
Certificates 96 1, Class A1,
7.53% due 09/20/02 -- -- 1,311,195 1,367,026 786,717 820,216
Nomura Asset Securities Corporation,
Series 1994 MD II A/6,
6.952% due 07/07/03 -- -- 1,092,469 1,095,244 702,302 704,085
</TABLE>
The accompanying notes are an integral part of the financial statements.
142
<PAGE> 181
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE MODERATE CONSERVATIVE
------------------------ ------------------------- -------------------------
Principal Principal Principal
Amount Value Amount Value Amount Value
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OTHER COLLATERALIZED
MORTGAGE OBLIGATIONS - CONTINUED
Olympic Automobile Receivable, 1997 A,
6.40% due 09/15/01 -- -- $1,080,000 $1,084,493 $440,000 $441,830
Overseas Private Investment Corporation,
Series 1995, 6.08% due 08/15/04 -- -- 421,400 421,851 352,800 353,177
Structured Asset Securities Corporation,
Certificates Series 95 C4, Class A 1A,
6.90% due 06/25/26 -- -- 19,128 19,043 11,089 11,039
------- ---------- ----------
156,076 17,735,124 10,284,003
TOTAL FIXED INCOME - OTHER
(Cost: $135,219, $24,273,235
and $14,315,967, respectively) $156,076 $24,524,967 $14,431,534
------- ---------- ----------
SUPRANATIONAL OBLIGATIONS: 0.13% 0.24%
Inter-American Development Bank,
6.29% due 07/16/27 -- -- 800,000 836,472 480,000 501,883
------- -------
TOTAL SUPRANATIONAL OBLIGATIONS
(Cost: $0, $794,994 and $476,997,
respectively) -- $836,472 $501,883
------- -------
SHORT TERM INVESTMENTS: 8.90% 8.10% 2.25%
Navigator Securities
Lending Trust, 5.74% $23,611,834 $53,721,023 $4,738,674
---------- ---------- ---------
REPURCHASE AGREEMENTS: 4.17% 5.24% 10.29%
Repurchase Agreement with State Street Bank
& Trust Company dated 12/31/97 at 5.00%, to
be repurchased at $11,058,071 on 01/02/98,
collateralized by $11,276,557 U.S. Treasury
Notes, 5.125% due 12/31/98 (valued at
$11,567,016, including interest) $11,055,000
----------
Repurchase Agreement with State Street Bank
& Trust Company dated 12/31/97 at 5.00%, to
be repurchased at $34,816,669 on 01/02/98,
collateralized by $35,505,861 U.S. Treasury
Notes, 6.125% due 12/31/01 (valued at
$36,580,798, including interest) $34,807,000
----------
Repurchase Agreement with State Street Bank
& Trust Company dated 12/31/97 at 5.00%, to
be repurchased at $21,704,028 on 01/02/98,
collateralized by $22,136,870 U.S. Treasury
Notes, 7.50% due 11/15/01 (valued at
$22,334,387, including interest) $21,701,000
----------
TOTAL INVESTMENTS
(Aggressive, Moderate and Conservative
Asset Allocation Trusts) (Cost:
$222,894,940, $582,270,877
and $196,142,585, respectively) $265,184,316 $663,132,000 $210,882,641
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
143
<PAGE> 182
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
HIGH YIELD TRUST
Shares Value
------ -----
COMMON STOCKS - 0.04%
TELECOMMUNICATION SERVICES - 0.04%
NEXTEL Communications, Incorporated* 1,673 $43,498
------
TOTAL COMMON STOCKS
(Cost: $27,000) $43,498
------
PREFERRED STOCKS - 4.00%
INDUSTRIAL - 0.33%
Sinclair Capital 3,125 $346,094
-------
PUBLISHING - 3.16%
Time Warner, Incorporated* 2,944 3,312,935
---------
TELECOMMUNICATION SERVICES - 0.52%
IXC Communications, Incorporated* 463 542,867
-------
TOTAL PREFERRED STOCKS
(Cost: $3,922,875) $4,201,896
---------
Principal
Amount Value
------ -----
U.S. TREASURY OBLIGATIONS - 1.77%
U.S. TREASURY NOTES - 1.77%
6.50% due 10/15/06 $1,775,000 $1,858,478
---------
TOTAL U.S. TREASURY
OBLIGATIONS (Cost: $1,773,206) $1,858,478
---------
FOREIGN GOVERNMENT OBLIGATIONS - 4.40%
REPUBLIC OF ARGENTINA - 1.29%
5.50% due 03/31/23 1,855,000 1,358,787
---------
REPUBLIC OF COLUMBIA - 0.35%
8.70% due 02/15/16 375,000 364,950
-------
GOVERNMENT OF JAMAICA - 0.25%
9.625% due 07/02/02 275,000 261,250
-------
GOVERNMENT OF MEXICO - 1.04%
United Mexican States,
6.25% due 12/31/19 1,315,000 1,094,738
---------
REPUBLIC OF PANAMA - 1.09%
7.875% due 02/13/02 1,180,000 1,147,550
---------
REPUBLIC OF VENEZUELA - 0.37%
9.25% due 09/15/27 435,000 389,760
-------
TOTAL FOREIGN GOVERNMENT
OBLIGATIONS (Cost: $4,465,221) $4,617,035
---------
CORPORATE BONDS - 62.17%
BANKING - 0.22%
Korea Development Bank,
7.375% due 09/17/04 $295,000 $236,062
-------
BROADCASTING - 7.56%
Cablevision Systems Corporation,
7.875% due 12/15/07 575,000 586,500
9.875% due 05/15/06 885,000 969,075
Comcast Cellular Holdings,
Incorporated, 9.50% due 05/01/07 975,000 1,014,000
Fox/Liberty Network LLC
8.875% due 08/15/07 240,000 240,000
Step up to 9.75% due 08/15/07 1,765,000 1,129,600
Rogers Cablesystems, Ltd., Series B,
10.00% due 03/15/05 115,000 126,500
10.125% due 09/01/12 650,000 708,500
Sinclair Broadcast Group,
Incorporated, 9.00% due 07/15/07 1,080,000 1,101,600
TCI Satellite Entertainment, Incorporated,
Step up to 12.25% due 02/15/07 2,025,000 1,336,500
TV Azteca SA DE CV, Series B,
10.50% due 02/15/07 700,000 722,750
---------
7,935,025
BUSINESS SERVICES - 0.48%
Kinetic Concepts, Incorporated,
9.625% due 11/01/07 500,000 508,125
-------
CHEMICALS - 0.35%
Huntsman Corporation,
FRN due 07/01/07 360,000 371,700
-------
COSMETICS & TOILETRIES - 1.33%
Revlon Worldwide Corporation,
Series B, zero coupon due 03/15/01 2,005,000 1,398,487
---------
DRUGS & HEALTH CARE - 2.97%
Integrated Health Services,
Incorporated, 9.50% due 09/15/07 980,000 1,009,400
Tenet Healthcare Corporation,
8.625% due 01/15/07 1,175,000 1,213,187
Vencor, Incorporated,
8.625% due 07/15/07 900,000 897,750
---------
3,120,337
ELECTRIC UTILITIES - 1.37%
AES Corporation,
8.50% due 11/01/07 630,000 630,000
Quezon Power, Ltd.,
8.86% due 06/15/17 970,000 803,965
---------
1,433,965
The accompanying notes are an integral part of the financial statements.
144
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
ELECTRONICS - 0.69%
Hyundai Semiconductor,
8.625% due 05/15/07 $830,000 $729,537
-------
FINANCIAL SERVICES - 5.70%
APP FIN II Mauritius, Ltd.,
12.00% due 02/15/04 860,000 739,600
Geberit International SA,
10.125% due 04/15/07 250,000 152,172
Globalstar LP, 11.375% due 02/15/04 750,000 757,500
Kmart Funding Corporation,
Series F, 8.80% due 07/01/10 1,175,000 1,229,814
Navistar Financial Corporation,
Series B, 9.00% due 06/01/02 110,000 113,988
PTC International Finance BV,
Step up to 10.75% due 07/01/07 1,270,000 825,500
Pindo Deli Financial Mauritius, Ltd.,
10.75% due 10/01/07 1,045,000 898,700
Riggs Capital Trust II,
8.875% due 03/15/27 200,000 220,122
Western Financial Savings,
8.875% due 08/01/07 1,090,000 1,048,973
---------
5,986,369
HOTELS & RESTAURANTS - 1.58%
Host Marriott Travel Plazas, Incorporated,
Series B, 9.50% due 05/15/05 1,560,000 1,661,400
---------
INDUSTRIALS - 11.13%
Advanced Micro Devices,
Incorporated, 11.00% due 08/01/03 1,350,000 1,444,500
Ameriserve Food Distribution,
Incorporated, 10.125% due 07/15/07 220,000 228,800
AST Research, Incorporated,
7.45% due 10/01/02 565,000 449,517
Azteca Holdings SA,
11.00% due 06/15/02 120,000 123,600
Concentric Network Corporation,
12.75% due 12/15/07 250,000 255,938
EES Coke Battery, Incorporated,
9.328% due 04/15/07 525,000 566,024
Hermes Europe Railtel BV,
11.50% due 08/15/07 135,000 148,838
Hylsa SA De CV,
9.25% due 09/15/07 750,000 735,000
Iridium LLC/Capital Corporation,
Series A, 13.00% due 07/15/05 490,000 512,050
ISP Holdings, Incorporated,
Series B, 9.00% due 10/15/03 1,570,000 1,624,950
ITT Promedia,
9.125% due 09/15/07 DEM 1,050,000 612,857
Multicanal SA, 10.50% due 02/01/07 $1,195,000 1,178,509
Murrin Murrin Holdings Property,
9.375% due 08/31/07 1,070,000 1,059,300
Paramount Communications,
Incorporated, 8.25% due 08/01/22 900,000 906,912
RBS Participacoes SA,
11.00% due 04/01/07 870,000 802,575
RCN Corporation,
11.125% due 10/15/07 1,000,000 627,500
Reliance Industries, Ltd.,
9.375% due 06/24/26 250,000 246,468
Transamerican Energy Corporation,
Step up to 13.00% due 06/15/02 200,000 161,500
----------
11,684,838
INSURANCE - 0.28%
Anthem Insurance Companies,
Incorporated, 9.00% due 04/01/27 $265,000 $291,622
-------
LEISURE TIME - 2.34%
Grand Casino, Incorporated,
10.125% due 12/01/03 525,000 567,000
Horseshoe Gaming L.L.C.,
Series B, 9.375% due 06/15/07 925,000 968,937
Station Casinos, Incorporated,
9.75% due 04/15/07 425,000 442,000
10.125% due 03/15/06 450,000 474,750
---------
2,452,687
METAL & METAL PRODUCTS - 0.33%
Impress Metal Packaging Holdings,
9.875% due 05/29/07 600,000 346,035
-------
PETROLEUM SERVICES - 2.75%
Newpark Resources, Incorporated,
8.625% due 12/15/07 1,035,000 1,050,525
Nuveo Energy Company,
9.50% due 04/15/06 800,000 846,000
Synder Oil Corporation,
8.75% due 06/15/07 985,000 991,156
---------
2,887,681
POLLUTION CONTROL - 1.35%
Norcal Waste Systems, Incorporated,
Series B, 13.50% due 11/15/05 1,220,000 1,415,200
---------
PUBLISHING - 2.03%
Big Flower Press Holdings,
Incorporated, 8.875% due 07/01/07 500,000 497,500
Outdoor Systems, Incorporated,
8.875% due 06/15/07 1,115,000 1,159,600
S.D. Warren Company,
Series B, 12.00% due 12/15/04 420,000 469,350
---------
2,126,450
REAL ESTATE - 1.13%
Criimi Mae, Incorporated,
9.125% due 12/01/02 1,050,000 1,052,625
The accompanying notes are an integral part of the financial statements.
145
<PAGE> 184
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
REAL ESTATE - CONTINUED
HMH Properties, Incorporated,
Series B, 8.875% due 07/15/07 130,000 $ 136,825
---------
1,189,450
RETAIL GROCERY - 3.12%
Fleming Companies, Incorporated,
10.50% due 12/01/04 1,185,000 1,250,175
10.625% due 07/31/07 200,000 210,000
Southland Corporation,
5.00% due 12/15/03 2,109,000 1,813,740
---------
3,273,915
TELECOMMUNICATION SERVICES - 5.71%
Brooks Fiber Properties, Incorporated,
zero coupon due 03/01/06 500,000 415,000
11.875% due 11/01/06 625,000 498,438
Esprit Telecom Group PLC,
11.50% due 12/15/07 1,850,000 1,061,800
Globo Comunicacoes,
10.50% due 12/20/06 600,000 570,000
Rogers Cantel, Incorporated,
8.30% due 10/01/07 1,355,000 1,344,837
Rogers Communications,
Incorporated, 8.875% due 07/15/07 400,000 400,000
Telesystem International Wireless,
Incorporated, Step up to
10.50% due 11/01/07 1,565,000 868,575
Teligent, Incorporated,
11.50% due 12/01/07 830,000 832,075
---------
5,990,725
TELEPHONE - 9.74%
Dial Call Communications,
Incorporated, Series B,
Step up to 10.25% due 12/15/05 650,000 593,125
Interamericas Communications,
14.00% due 10/27/07 440,000 440,000
Intermedia Communications,
Incorporated, Series B,
Step up to 11.25% due 07/15/07 2,400,000 1,746,000
IXC Communications, Incorporated,
Series B, 12.50% due 10/01/05 590,000 675,550
Lenfest Communications,
Incorporated, 8.375% due 11/01/05 890,000 914,475
NEXTEL Communications, Incorporated,
zero coupon due 08/15/04 3,050,000 2,714,500
Occidente y Caribe Celular SA, Series B,
Step up to 14.00% due 03/15/04 900,000 675,000
Philippine Long Distance Telephone
Company, 7.85% due 03/06/07 880,000 774,400
Qwest Communications International,
Incorporated, 10.875% due 04/01/07 225,000 255,938
Teleport Communications Group,
zero coupon due 07/01/07 1,765,000 1,438,475
----------
10,227,463
TOTAL CORPORATE BONDS
(Cost: $64,742,252) $65,267,073
----------
CONVERTIBLE BONDS - 0.53%
INDUSTRIALS - 0.35%
Comcast Corporation,
1.125% due 04/15/07 $570,000 $367,650
-------
TELECOMMUNICATION SERVICES - 0.18%
Total Access Communication Public
Company, Ltd., 2.00% due 05/15/06 400,000 186,000
-------
TOTAL CONVERTIBLE BONDS
(Cost: $775,493) $553,650
-------
COLLATERALIZED
MORTGAGE OBLIGATIONS - 4.00%
ALPS, 12.75% due 06/15/06 149,588 161,610
CA FM Lease Trust,
8.50% due 07/15/17 244,664 272,142
DLJ Mortgage Acceptance Corporation,
Series 1997-CF2, Class S,
0.3567% due 10/15/17 IO 21,000,000 558,182
DR Structured Finance,
6.66% due 08/15/10, Series A-1 649,302 601,208
7.43% due 08/15/18, Series A-2 375,000 334,253
8.375% due 08/15/15, Series A-2 550,000 540,254
9.35% due 08/15/19, Series 94K2 400,000 416,684
Jet Equipment Trust,
11.79% due 06/15/13 300,000 404,058
Midland Funding Corporation,
10.33% due 07/23/02 294,107 316,162
Securitized Multiple Asset Rated
Trust, Series 1997, Class 5,
7.72% due 04/15/05 589,612 595,547
---------
4,200,100
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost: $4,048,082) $4,200,100
---------
FIXED INCOME - OTHER - 2.11%
MISCELLANEOUS ASSET BACKED SECURITIES - 2.11%
Long Beach Acceptance Auto
Business, 14.22% due 10/25/03 1,603,201 1,603,631
OHA Auto Grantor Trust, Series 1997-1,
Class B, 11.00% due 01/15/04 615,144 616,650
---------
2,220,281
TOTAL FIXED INCOME - OTHER
(Cost: $2,233,278) $2,220,281
---------
The accompanying notes are an integral part of the financial statements.
146
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 9.99%
$10,489,036 Navigator Securities
Lending Trust, 5.74% $10,489,036
----------
REPURCHASE AGREEMENT - 10.98%
$11,531,000 Repurchase Agreement with
State Street Bank & Trust
Company dated 12/31/97 at
5.00%, to be repurchased at
$11,534,203 on 01/02/98,
collateralized by $9,300,000
U.S. Treasury Bonds, 8.125%
due 05/16/21 (valued at
$11,857,092, including interest) $11,531,000
----------
TOTAL INVESTMENTS
(High Yield Trust) (Cost: $104,007,443) $104,982,047
-----------
STRATEGIC BOND TRUST
Shares Value
------ -----
WARRANTS - 0.00%*
FINANCIAL SERVICES - 0.00%
BPC Holdings Corporation (Expiration
date 04/15/04; strike price $18.797) 1,000 $20,000
------
TELEPHONE - 0.00%
Wireless One, Incorporated (Expiration
date 10/19/00; strike price $11.50) 2,250 22
--
TOTAL WARRANTS (Cost: $0) $20,022
------
Principal
Amount Value
------ -----
U.S. TREASURY OBLIGATIONS - 10.02%***
U.S. TREASURY BONDS - 1.21%
6.375% due 08/15/27 $5,470,000 $5,769,154
---------
U.S. TREASURY NOTES - 8.81%
3.375% due 01/15/07 1,190,000 1,158,763
5.875% due 09/30/02 5,000,000 5,027,350
6.125% due 08/15/07 16,325,000 16,776,549
6.25% due 08/31/02 13,000,000 13,266,110
6.625% due 03/31/02 5,500,000 5,677,870
----------
41,906,642
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $47,005,225) $47,675,796
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.63%
FEDERAL HOME LOAN BANK - 0.36%
5.89% due 07/24/00 1,200,000 1,202,064
5.94% due 06/13/00 500,000 501,560
---------
1,703,624
FEDERAL HOME LOAN
MORTGAGE CORPORATION - 1.10%
6.50% TBA** $1,250,000 1,235,538
7.595% due 07/15/06 IO 1,576,986 220,778
8.00% due 05/01/10 1,000,259 1,027,686
8.50% due 05/01/08 519,773 541,645
10.00% due 05/15/20 1,971,493 2,182,798
---------
5,208,445
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 10.91%
Interest Only due 03/17/20, REMIC 24,923,683 763,911
Interest Only due 10/17/36, REMIC 51,248,891 1,601,528
6.50% TBA** 750,000 741,322
6.50% due 11/01/10 - 12/01/10 1,296,169 1,304,270
6.65% due 08/25/07 5,350,000 5,472,047
7.00% TBA** 34,750,000 34,999,505
7.50% TBA** 4,075,000 4,170,477
8.80% due 01/25/19, REMIC 1,464,589 1,562,526
10.40% due 04/25/19, REMIC 860,316 968,389
13.00% due 11/01/15 270,627 324,329
----------
51,908,304
STUDENT LOAN MARKETING ASSOCIATION - 0.26%
7.20% due 11/09/00 1,200,000 1,242,936
---------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (Cost: $59,092,987) $60,063,309
----------
FOREIGN GOVERNMENT OBLIGATIONS - 17.23%
REPUBLIC OF ARGENTINA - 2.22%
5.50% due 03/31/23 14,400,000 10,548,000
----------
COMMONWEALTH OF AUSTRALIA - 0.05%
8.75% due 08/15/08 AUD 300,000 235,668
-------
FEDERAL REPUBLIC OF BRAZIL - 1.82%
10.125% due 05/15/27 $9,250,000 8,671,875
---------
NATIONAL REPUBLIC OF BULGARIA - 0.92%
6.687% due 07/28/11 6,000,000 4,395,000
---------
GOVERNMENT OF CANADA - 0.95%
6.50% due 09/01/98 CAD 3,060,000 2,162,588
7.00% due 12/01/06 590,000 452,625
7.50% due 09/01/00 2,590,000 1,908,486
---------
4,523,699
GOVERNMENT OF COSTA RICA - 0.11%
Series B, 6.25% due 05/21/15 $700,000 518,000
-------
KINGDOM OF DENMARK - 0.67%
6.00% due 11/15/02 DKK 19,000,000 2,879,712
8.00% due 03/15/06 1,900,000 321,247
---------
3,200,959
The accompanying notes are an integral part of the financial statements.
147
<PAGE> 186
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
REPUBLIC OF ECUADOR - 0.26%
3.25% due 02/27/15 $2,023,076 $1,246,821
---------
FEDERAL REPUBLIC OF GERMANY - 2.16%
5.25% due 10/20/98 DEM 8,790,000 4,939,932
6.50% due 07/04/27 8,850,000 5,328,842
----------
10,268,774
REPUBLIC OF ITALY - 0.72%
zero coupon due 07/31/98 ITL 6,200,000,000 3,403,867
---------
GOVERNMENT OF MEXICO - 2.03%
6.25% due 12/31/19, Series B $1,400,000 1,165,500
6.25% due 12/31/19, Series W-A 1,000,000 832,500
6.25% due 12/31/19, Series W-B 3,000,000 2,497,500
FRN due 12/31/19, Series D 2,500,000 2,312,500
11.50% due 05/15/26 2,400,000 2,835,000
---------
9,643,000
GOVERNMENT OF MOROCCO - 1.27%
FRN due 01/01/09 7,000,000 6,020,000
---------
GOVERNMENT OF NEW ZEALAND - 0.71%
8.00% due 07/15/98 NZD 5,800,000 3,360,664
---------
REPUBLIC OF PANAMA - 0.57%
3.75% due 07/17/14 $3,500,000 2,699,375
---------
KINGDOM OF SWEDEN - 0.93%
6.50% due 10/25/06 SEK 8,100,000 1,059,644
11.00% due 01/21/99 25,200,000 3,363,100
---------
4,422,744
REPUBLIC OF VENEZUELA - 1.85%
VR, 6.75% due 03/31/07, Series A $452,381 405,469
VR, 6.75% due 03/31/07, Series B 1,130,952 1,013,673
FRN due 12/18/07, Series DL 6,047,619 5,322,207
9.25% due 09/15/27 2,325,000 2,075,062
---------
8,816,411
TOTAL FOREIGN GOVERNMENT
OBLIGATIONS (Cost: $78,779,838) $81,974,857
----------
FOREIGN BONDS - 1.16%
Russian Ian,
FRN due 12/02/15 5,600,000 3,969,000
Treuhandanstalt,
7.375% due 12/02/02 DEM 2,480,000 1,529,399
---------
5,498,399
TOTAL FOREIGN BONDS
(Cost: $5,466,552) $5,498,399
---------
CORPORATE BONDS - 30.89%
APPAREL & TEXTILES - 0.79%
ClarkSchwebel, Incorporated,
10.50% due 04/15/06 $1,150,000 $1,253,500
Collins & Aikman Floorcover,
10.00% due 01/15/07 1,250,000 1,293,750
Synthetic Industries, Incorporated,
Series B, 9.25% due 02/15/07 1,150,000 1,207,500
---------
3,754,750
BANKING - 2.33%
Banc One Corporation,
7.60% due 05/01/07 3,200,000 3,439,584
Korea Development Bank,
9.60% due 12/01/00 3,000,000 2,680,290
Malayan Banking BHD,
7.125% due 09/15/05 2,100,000 1,912,155
Midland Bank PLC,
7.65% due 05/01/25 2,825,000 3,070,944
----------
11,102,973
BROADCASTING - 0.59%
Cablevision Systems Corporation,
10.50% due 05/15/16 1,000,000 1,165,000
Chancellor Media Corporation,
9.375% due 10/01/04 500,000 520,000
SFX Broadcasting, Incorporated,
Series B, 10.75% due 05/15/06 1,000,000 1,097,500
---------
2,782,500
BUSINESS SERVICES - 0.21%
Borg-Warner Security Corporation,
9.125% due 05/01/03 1,000,000 1,020,000
---------
CHEMICAL PRODUCTS - 0.25%
Texas-Petro Chemical Corporation,
11.125% due 07/01/06 1,085,000 1,171,800
---------
CONSTRUCTION & BUILDING MATERIALS - 0.29%
Southdown, Incorporated,
Series B, 10.00% due 03/01/06 1,250,000 1,371,875
---------
COSMETICS & TOILETRIES - 0.29%
Revlon Worldwide Corporation,
Series B, zero coupon due 03/15/01 2,000,000 1,395,000
---------
DRUGS & HEALTH CARE - 1.16%
Dade International, Incorporated,
11.125% due 05/01/06 1,000,000 1,112,500
Eye Care Centers of America,
Incorporated, 12.00% due 10/01/03 1,250,000 1,350,000
Imagyn Medical Technologies,
Incorporated, 12.50% due 04/01/04 1,000,000 947,500
The accompanying notes are an integral part of the financial statements.
148
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
DRUGS & HEALTH CARE - CONTINUED
Integrated Health Services,
Incorporated, 9.25% due 01/15/08 $1,000,000 $1,020,000
Maxxim Medical, Incorporated,
10.50% due 08/01/06 1,000,000 1,087,500
---------
5,517,500
ELECTRONICS - 0.17%
Amphenol Corporation,
9.875% due 05/15/07 750,000 795,000
-------
ENERGY & UTILITIES - 0.83%
AES Corporation,
8.50% due 11/01/07 1,000,000 1,000,000
AES China Generating, Ltd.,
10.125% due 12/15/06 1,000,000 1,015,000
KCS Energy, Incorporated, Series B,
11.00% due 01/15/03 1,000,000 1,100,000
Transamerican Energy Corporation,
Step up to 13.00% due 06/15/02 1,050,000 847,875
---------
3,962,875
FINANCIAL SERVICES - 3.67%
APP FIN II Mauritius, Ltd., Series B,
Step up to 12.00% due 02/15/04 1,000,000 860,000
Dollar Financial Group, Incorporated,
Series A, 10.875% due 11/15/06 525,000 567,000
DVI, Incorporated,
9.875% due 02/01/04 1,000,000 1,020,000
Foamex Capital Corporation,
9.875% due 05/15/07 1,000,000 1,025,000
Green Tree Financial Corporation,
7.07% due 09/15/07 8,355,334 8,514,586
Intertek Finance PLC, Series B,
10.25% due 11/01/06 1,250,000 1,300,000
Paine Webber Group, Incorporated,
7.00% due 03/01/00 1,700,000 1,718,734
United States Leasing International,
8.45% due 01/25/05 1,500,000 1,662,180
Venture Holdings Trust,
9.75% due 04/01/04 781,000 777,095
----------
17,444,595
FOOD & BEVERAGES - 0.99%
B & G Foods, Incorporated,
9.625% due 08/01/07 500,000 503,750
Delta Beverage Group, Incorporated,
9.75% due 12/15/03 750,000 780,000
Dole Foods, Incorporated,
6.75% due 07/15/00 1,500,000 1,512,480
Specialty Foods Corporation,
Series B, 11.125% due 10/01/02 1,000,000 1,010,000
Stroh Brewery Company,
11.10% due 07/01/06 1,000,000 905,000
---------
4,711,230
FOREST PRODUCTS - 0.20%
Doman Industries, Ltd.,
8.75% due 03/15/04 1,000,000 955,000
-------
FURNITURE & FIXTURES - 0.11%
Simmons Company,
10.75% due 04/15/06 500,000 526,250
-------
HOTELS & RESTAURANTS - 0.53%
Prime Hospitality Corporation,
Series B,9.75% due 04/01/07 1,000,000 1,070,000
Wyndham Hotel Corporation,
10.50% due 05/15/06 1,250,000 1,450,000
---------
2,520,000
INDUSTRIALS - 6.79%
Alvey Systems, Incorporated,
11.375% due 01/31/03 750,000 817,500
Ameriserve Food Distribution, Incorporated,
10.125% due 07/15/07 1,000,000 1,040,000
Berry Plastics Corporation,
12.25% due 04/15/04 1,150,000 1,267,875
CFP Holding, Incorporated,
Series B, 11.625% due 01/15/04 1,100,000 1,100,000
CLN Holdings, Incorporated,
zero coupon due 05/15/01 2,500,000 1,656,250
Dawson Production Services,
Incorporated, 9.375% due 02/01/07 1,250,000 1,317,187
Decisionone Corporation,
9.75% due 08/01/07 1,030,000 1,058,325
Ekco Group, Incorporated,
Series B, 9.25% due 04/01/06 1,000,000 1,040,000
Exide Electronics Group, Incorporated,
Series B, 11.50% due 03/15/06 750,000 890,625
Harnischfeger Industries,
Incorporated, 6.875% due 02/15/27 2,400,000 2,495,400
Hollinger, Incorporated,
zero coupon due 10/05/13 3,000,000 1,166,250
Huntsman Packaging Corporation,
9.125% due 10/01/07 1,000,000 1,030,000
ICG Holdings, Incorporated,
Step up to 13.50% due 09/15/05 1,250,000 1,026,563
International Semi Tech Microelectronic,
Step up to 11.50% due 08/15/03 800,000 288,000
Insilco Corporation,
10.25% due 08/15/07 1,000,000 1,047,500
Jordan Industries, Incorporated, Series B,
Step up to 11.75% due 04/01/09 2,412,580 1,423,422
Key Plastics, Incorporated,
Series B, 10.25% due 03/15/07 500,000 530,000
Loomis Fargo & Company,
10.00% due 01/15/04 1,000,000 1,005,000
Marcus Cable Company,
Step up to 14.25% due 12/15/05 1,750,000 1,513,750
The accompanying notes are an integral part of the financial statements.
149
<PAGE> 188
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
INDUSTRIALS - CONTINUED
Murrin Murrin Holdings Property,
9.375% due 08/31/07 $1,000,000 $990,000
Nortek, Incorporated, Series B,
9.125% due 09/01/07 1,000,000 1,015,000
Packard Bioscience Company,
Series B, 9.375% due 03/01/07 900,000 864,000
Printpack, Incorporated, Series B,
10.625% due 08/15/06 750,000 802,500
Production Resource,
11.50% due 01/15/08 500,000 501,250
Pueblo Xtra International,
9.50% due 08/01/03 1,000,000 952,500
Rayovac Corporation, Series B,
10.25% due 11/01/06 650,000 708,500
SC International Services, Incorporated,
9.25% due 09/01/07 1,000,000 1,035,000
Stellex Industries, Incorporated,
9.50% due 11/01/07 750,000 757,500
Talley Manufacturing & Technology,
Incorporated, 10.75% due 10/15/03 1,000,000 1,065,000
Terex Corporation,
13.25% due 05/15/02 667,000 753,710
Williams Scotsman, Incorporated,
9.875% due 06/01/07 1,100,000 1,133,000
----------
32,291,607
INSURANCE - 0.38%
Aetna Services, Incorporated,
7.625% due 08/15/26 1,700,000 1,792,004
---------
LEISURE TIME - 0.32%
Grand Casinos, Incorporated,
9.00% due 10/15/04 1,000,000 1,000,000
Sun International Hotels, Ltd.,
9.00% due 03/15/07 500,000 516,250
---------
1,516,250
METAL & METAL PRODUCTS - 1.05%
Algoma Steel, Incorporated,
12.375% due 07/15/05 1,000,000 1,160,000
Commonwealth Aluminum
Corporation, 10.75% due 10/01/06 1,000,000 1,080,000
EnviroSource, Incorporated,
9.75% due 06/15/03 600,000 610,500
International Knife & Saw,
11.375% due 11/15/06 1,000,000 1,080,000
Renco Metals, Incorporated,
11.50% due 07/01/03 1,000,000 1,060,000
---------
4,990,500
MINING - 0.07%
Royal Oaks Mines, Incorporated,
Series B, 11.00% due 08/15/06 500,000 355,000
-------
MISCELLANEOUS SERVICES - 0.79%
American Media Operations, Incorporated,
11.625% due 11/15/04 1,150,000 1,247,750
Hines Horticulture, Incorporated,
Series B, 11.75% due 10/15/05 1,290,000 1,406,100
Selmer Company, Incorporated,
11.00% due 05/15/05 1,000,000 1,095,000
---------
3,748,850
NEWSPAPERS - 0.21%
Garden State Newspapers,
Incorporated, 8.75% due 10/01/09 1,000,000 1,003,750
---------
OFFICE FURNISHINGS & SUPPLIES - 0.61%
Staples, Incorporated,
7.125% due 08/15/07 2,850,000 2,895,486
---------
PAPER - 0.44%
Crown Paper Company,
11.00% due 09/01/05 800,000 816,000
Stone Container Corporation,
12.25% due 04/01/02 1,250,000 1,268,750
---------
2,084,750
PETROLEUM SERVICES - 1.90%
Bellwether Exploration Company,
10.875% due 04/01/07 1,000,000 1,100,000
Benton Oil & Gas Company,
11.625% due 05/01/03 1,000,000 1,102,500
Cliffs Drilling Company,
10.25% due 05/15/03 1,100,000 1,188,000
Costilla Energy, Incorporated,
10.25% due 10/01/06 1,000,000 1,045,000
National Energy Group, Incorporated,
10.75% due 11/01/06 1,250,000 1,296,875
Occidental Petroleum Corporation,
9.25% due 08/01/19 2,225,000 2,778,958
United Refining Company,
10.75% due 06/15/07 500,000 525,000
---------
9,036,333
PLASTICS - 0.17%
Plastic Containers, Incorporated,
Series B, 10.00% due 12/15/06 750,000 795,000
-------
POLLUTION CONTROL - 0.60%
Allied Waste Industries, Incorporated,
Step up to 11.30% due 06/01/07 2,000,000 1,400,000
Norcal Waste Systems, Incorporated,
Series B, 13.50% due 11/15/05 1,250,000 1,450,000
---------
2,850,000
REAL ESTATE - 0.27%
Radnor Holdings Corporation,
10.00% due 12/01/03 1,250,000 1,296,875
---------
The accompanying notes are an integral part of the financial statements.
150
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
RETAIL GROCERY - 0.58%
Carr Gottstein Foods Company,
12.00% due 11/15/05 $1,000,000 $1,110,000
Fleming Companies, Incorporated,
10.50% due 12/01/04 500,000 527,500
Jitney-Jungle Stores of America,
Incorporated, 12.00% due 03/01/06 1,000,000 1,135,000
---------
2,772,500
RETAIL TRADE - 0.93%
Cole National Group, Incorporated,
8.625% due 08/15/07 1,000,000 993,750
Fox Kids Worldwide, Incorporated,
Step up to 10.25% due 11/01/07 1,500,000 888,750
French Fragrances, Incorporated,
Series B, 10.375% due 05/15/07 500,000 522,500
Herff Jones, Incorporated,
Series B, 11.00% due 08/15/05 500,000 542,500
Hills Stores Company,
Series B, 12.50% due 07/01/03 500,000 392,500
Windy Hill Pet Food, Incorporated,
9.75% due 05/15/07 1,040,000 1,060,800
---------
4,400,800
TELECOMMUNICATION SERVICES - 1.49%
Adelphia Communications Corporation,
Series B, 9.875% due 03/01/07 525,000 552,563
Series B, 10.50% due 07/15/04 475,000 508,844
Comcast Cellular Holdings, Incorporated,
Series B, 9.50% due 05/01/07 1,000,000 1,040,000
Diamond Cable Communications PLC,
Step up to 11.75% due 12/15/05 1,000,000 777,500
International Cabletel,
Incorporated, Series B,
Step up to 11.50% due 02/01/06 1,500,000 1,177,500
Telewest Communication PLC,
Step up to 11.00% due 10/01/07 1,500,000 1,166,250
United International Holdings,
Incorporated, zero coupon
due 11/15/99 2,250,000 1,845,000
---------
7,067,657
TELEPHONE - 0.78%
Intermedia Communications,
Incorporated, Series B,
Step up to 11.25% due 07/15/07 1,000,000 727,500
8.875% due 11/01/07 500,000 513,750
NEXTEL Communications, Incorporated,
zero coupon due 08/15/04 1,250,000 1,112,500
Nextlink Communications LLC,
12.50% due 04/15/06 1,000,000 1,140,000
Wireless One, Incorporated,
13.00% due 10/15/03 750,000 232,500
---------
3,726,250
TRANSPORTATION SERVICES - 0.89%
Atlantic Express Transportation
Corporation, 10.75% due 02/01/04 1,250,000 1,328,125
Iron Mountain, Incorporated,
10.125% due 10/01/06 1,000,000 1,100,000
Ryder Trucks, Incorporated,
10.00% due 12/01/06 850,000 850,000
TFM SA DE CV,
Step up to 11.75% due 06/15/09 1,500,000 952,500
---------
4,230,625
TOYS, AMUSEMENTS & SPORTING GOODS - 0.22%
Riddell Sports, Incorporated,
10.50% due 07/15/07 1,000,000 1,027,500
---------
TOTAL CORPORATE BONDS
(Cost: $143,951,192) $146,913,085
-----------
CONVERTIBLE BONDS - 0.17%
Fresenius Medical Care Capital
Trust, 9.00% due 12/01/06 750,000 785,625
-------
TOTAL CONVERTIBLE BONDS
(Cost: $766,875) $785,625
-------
FIXED INCOME - OTHER - 1.41%
MISCELLANEOUS ASSET BACKED SECURITIES - 1.41%
Mid State Trust VI, Class A,
7.34% due 07/01/35 6,379,917 6,688,513
---------
TOTAL FIXED INCOME - OTHER
(Cost: $6,378,934) $6,688,513
---------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENTS - 26.49%
$15,000,000 Bausch & Lomb, Incorporated,
7.50% due 01/02/98 $14,996,875
15,000,000 Bombardier Capital, Incorporated,
7.25% due 01/02/98 14,996,979
11,656,000 Cummins Engine, Incorporated,
7.15% due 01/05/98 11,646,740
75,776,050 Navigator Securities
Lending Trust, 5.74% 75,776,050
3,000,000 New York, New York,
3,000,000 Series 7, 5.78% due 02/04/98 3,000,000
Series B, VR, 5.85%, 02/03/98 3,000,000
2,604,000 SuperValue, Incorporated,
6.80% due 01/02/98 2,603,508
-----------
126,020,152
TOTAL INVESTMENTS
(Strategic Bond Trust) (Cost: $467,461,755) $475,639,758
-----------
The accompanying notes are an integral part of the financial statements.
151
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
GLOBAL GOVERNMENT BOND TRUST
Principal
Amount Value
------ -----
U.S. GOVERNMENT
AGENCY OBLIGATIONS - 7.32%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 7.32%
5.80% due 12/10/03 $10,000,000 $9,920,300
6.375% due 08/15/07 AUD 8,000,000 5,302,632
----------
15,222,932
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost: $14,976,721) $15,222,932
----------
FOREIGN GOVERNMENT OBLIGATIONS - 63.48%
COMMONWEALTH OF AUSTRALIA - 2.23%
Queensland Treasury,
6.50% due 06/14/05 AUD 7,000,000 4,635,245
---------
GOVERNMENT OF CANADA - 8.65%
6.00% due 02/21/06 $10,000,000 9,945,000
6.125% due 07/15/02 8,000,000 8,045,000
----------
17,990,000
KINGDOM OF DENMARK - 6.08%
zero coupon due 12/23/02 6,000,000 4,503,750
7.00% due 11/10/24 DKK 50,000,000 8,140,808
----------
12,644,558
FEDERAL REPUBLIC OF GERMANY - 4.62%
zero coupon due 07/04/27 DEM 40,000,000 3,779,983
6.00% due 07/04/07 10,000,000 5,838,961
---------
9,618,944
REPUBLIC OF ITALY - 18.08%
zero coupon due 01/10/01 $14,000,000 11,690,000
6.75% due 02/01/07 ITL 10,000,000,000 6,127,190
7.25% due 11/01/26 10,000,000,000 6,579,989
8.50% due 04/01/04 10,000,000,000 6,544,940
9.00% due 10/01/03 10,000,000,000 6,667,609
----------
37,609,728
GOVERNMENT OF NEW ZEALAND - 3.35%
7.00% due 07/15/09 NZD 12,000,000 6,962,567
---------
REPUBLIC OF SOUTH AFRICA - 4.66%
12.50% due 12/21/06 ZAR 20,000,000 3,819,994
13.00% due 08/31/10 30,000,000 5,872,448
---------
9,692,442
KINGDOM OF SWEDEN - 11.81%
zero coupon due 07/31/00 $4,000,000 3,442,500
5.50% due 04/12/02 SEK 50,000,000 6,282,888
6.00% due 02/09/05 50,000,000 6,342,775
6.50% due 10/25/06 65,000,000 8,503,318
----------
24,571,481
GOVERNMENT OF UNITED KINGDOM - 3.99%
United Kingdom Treasury,
7.00% due 11/06/01 P 5,000,000 8,307,453
---------
TOTAL FOREIGN GOVERNMENT
OBLIGATIONS (Cost: $132,808,129) $132,032,418
-----------
CORPORATE BONDS - 17.11%
FINANCIAL SERVICES - 12.19%
Commerzbank Overseas Finance,
14.00% due 01/05/01 ZAR 6,000,000 $1,225,984
DEPFA Finance NV,
7.125% due 11/11/03 P 5,000,000 8,294,625
Deutsche Finance BV,
zero coupon due 11/18/26 DKK 130,000,000 3,059,370
Helaba International Finance
PLC, 7.375% due 12/30/02 P 5,000,000 8,325,422
Swedish Export Credit,
zero coupon due 05/22/17 ZAR 150,000,000 2,581,424
Westlb Finance Curacao,
15.25% due 02/07/00 9,000,000 1,863,249
----------
25,350,074
TOBACCO - 4.92%
Philip Morris Companies,
Incorporated,
7.00% due 07/15/05 $10,000,000 10,239,720
----------
TOTAL CORPORATE BONDS
(Cost: $34,634,265) $35,589,794
----------
FIXED INCOME - OTHER - 3.89%
MISCELLANEOUS ASSET BACKED SECURITIES - 3.89%
Citibank Credit Card
Master Trust, Series A,
5.75% due 07/16/07 DEM 15,000,000 8,088,051
---------
TOTAL FIXED-INCOME - OTHER
(Cost: $8,518,679) $8,088,051
---------
SUPRANATIONAL OBLIGATIONS - 6.80%
International Bank for Reconstruction
& Development (World Bank),
zero coupon due 07/14/27 ZAR 500,000,000 3,531,799
7.00% due 09/18/00 NZD 12,000,000 6,815,379
Eurofima,
15.50% due 02/07/02 ZAR 9,000,000 1,909,483
European Investment Bank,
14.75% due 06/13/02 9,000,000 1,889,833
----------
14,146,494
TOTAL SUPRANATIONAL
OBLIGATIONS (Cost: $15,179,634) $14,146,494
----------
The accompanying notes are an integral part of the financial statements.
152
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
REPURCHASE AGREEMENT - 1.39%
$2,900,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/97 at 5.00%, to be
repurchased at $2,900,806 on
01/02/98, collateralized by
$2,945,000 U.S. Treasury Notes,
5.625% due 11/30/98 (valued at
$2,972,296, including interest) $2,900,000
---------
TOTAL INVESTMENTS
(Global Government Bond Trust)
(Cost: $209,017,428) $207,979,689
-----------
CAPITAL GROWTH BOND TRUST
Principal
Amount Value
------ -----
U.S. TREASURY OBLIGATIONS - 7.85%
U.S. TREASURY BONDS - 3.93%
6.375% due 08/15/27 $750,000 $791,017
6.625% due 02/15/27 1,065,000 1,156,185
6.75% due 08/15/26 235,000 258,721
---------
2,205,923
U.S. TREASURY NOTES - 3.92%
6.125% due 08/15/07 1,000,000 1,027,660
6.375% due 05/15/99 360,000 363,319
7.25% due 05/15/04 750,000 809,415
---------
2,200,394
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $4,283,785) $4,406,317
---------
FOREIGN GOVERNMENT OBLIGATIONS - 1.97%
GOVERNMENT OF CANADA - 1.97%
Province of Quebec,
8.80% due 04/15/03 1,000,000 1,108,760
---------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost: $1,106,594) $1,108,760
---------
CORPORATE BONDS - 61.07%
AUTOMOBILES - 5.55%
Ford Motor Credit Corporation,
6.375% due 04/15/00 1,000,000 1,004,200
Chrysler Corporation,
7.45% due 02/01/97 2,000,000 2,114,380
---------
3,118,580
BANKING - 9.53%
Bank of New York, Incorporated,
6.625% due 06/15/03 1,000,000 1,012,810
Bank of Nova Scotia Halifax,
9.00% due 10/01/99 1,000,000 1,046,530
BCH Cayman Islands, Ltd.,
6.50% due 02/15/06 1,000,000 984,880
Citicorp, 7.125% due 06/01/03 1,000,000 1,038,210
Republic New York Corporation,
9.50% due 04/15/14 1,000,000 1,271,700
---------
5,354,130
COMPUTERS & BUSINESS EQUIPMENT - 2.13%
GTE Corporation,
8.75% due
11/01/21 1,000,000 1,197,820
---------
CONGLOMERATES - 1.75%
ITT Corporation, 6.25% due 11/15/00 1,000,000 983,300
-------
DRUGS & HEALTH CARE - 1.92%
Columbia/HCA Healthcare
Corporation, 8.70% due 02/10/10 1,000,000 1,078,130
---------
ELECTRIC UTILITIES - 5.36%
Baltimore Gas and Electric Company,
6.125% due 07/01/03 1,000,000 997,830
Northern States Power Company,
6.375% due 04/01/03 1,000,000 1,008,120
Pacific Gas & Electric Company,
6.25% due 08/01/03 1,000,000 1,002,710
---------
3,008,660
FINANCIAL SERVICES - 18.23%
Associates Corporation of North
America, 6.125% due 02/01/98 1,000,000 999,980
Bear Stearns Capital Trust,
Incorporated, 7.00% due 01/15/27 1,000,000 1,012,858
CEZ Finance BV,
7.125% due 07/15/07 1,000,000 989,890
CIT Group Holdings, Incorporated,
8.75% due 04/15/98 1,000,000 1,007,880
Commerical Credit Group,
Incorporated, 7.375% due 04/15/05 1,000,000 1,055,060
Donaldson Lufkin and Jenrette,
5.625% due 02/15/16 1,000,000 984,640
Fifth Third Capital Trust
Incorporated, 8.136% due 03/15/27 1,000,000 1,113,341
Household Finance Corporation,
7.75% due 06/01/99 1,000,000 1,020,790
Salomon, Incorporated,
5.75% due 03/31/98 1,000,000 999,410
Southern Company Capital Trust,
Incorporated, 8.19% due 02/01/37 1,000,000 1,057,140
----------
10,240,989
FUNERAL SERVICES - 1.80%
Service Corporation International,
6.75% due 06/01/01 1,000,000 1,011,650
---------
HOUSEHOLD PRODUCTS - 2.29%
Procter & Gamble Profit,
Series A, 9.36% due
01/01/21 1,000,000 1,284,850
---------
The accompanying notes are an integral part of the financial statements.
153
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
INSURANCE - 1.82%
Zurich Reinsurance Centre
Holdings, Incorporated,
7.125% due 10/15/23 $1,000,000 $1,023,600
---------
NATURAL GAS - 1.82%
Columbia Gas Systems,
Incorporated, 7.05% due 11/28/07 1,000,000 1,021,490
---------
NEWSPAPERS - 1.95%
News America Holdings,
Incorporated, 8.50% due 02/15/05 1,000,000 1,096,610
---------
PETROLEUM SERVICES - 1.93%
Ultramar Corporation,
8.00% due 03/15/05 1,000,000 1,082,340
---------
REAL ESTATE - 1.86%
MEPC Finance, Incorporated,
7.50% due 05/01/03 1,000,000 1,044,770
---------
TELEPHONE - 1.30%
BellSouth Savings, ESOT
9.19% due 07/01/03 667,674 729,614
-------
TOYS, AMUSEMENTS & SPORTING GOODS - 1.82%
Brunswick Corporation,
7.125% due 08/01/27 1,000,000 1,024,820
---------
TOTAL CORPORATE BONDS
(Cost: $32,776,509) $34,301,353
----------
FIXED INCOME - OTHER - 8.95%
MISCELLANEOUS ASSET BACKED SECURITIES - 8.95%
Carco Auto Loan Master Trust,
Series 1997-1, Class A,
6.689% due 08/15/04 1,000,000 1,010,240
Discover Card Master Trust I,
Series 1997-2, Class A,
6.792% due 04/16/10 1,000,000 1,009,790
Mortgage Index Amortizing Trust,
Series 1997-1, Class A-1,
7.00% due 08/25/04 1,000,000 1,003,750
Residential Funding Mortgage
Securities, Series 1996-S1,
Class A12, 7.25% due 01/25/26 1,000,000 1,010,621
Residential Funding Mortgage
Securities, Series 1996-S3,
Class A5, 7.25% due 01/25/26 981,758 991,647
---------
5,026,048
TOTAL FIXED INCOME - OTHER
(Cost: $4,984,690) $5,026,048
---------
SHORT TERM INVESTMENT - 5.09%
$2,860,600 Navigator Securities
Lending Trust, 5.74% $2,860,600
---------
REPURCHASE AGREEMENT - 15.06%
$8,461,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/97 at 5.85%, to be
repurchased at $8,463,750 on
01/02/98, collateralized by
$8,415,000 U.S. Treasury Notes,
5.875% due 01/31/99 (valued at
$8,840,554, including interest) $8,461,000
---------
TOTAL INVESTMENTS (Capital Growth
Bond Trust) (Cost: $54,473,178) $56,164,078
----------
INVESTMENT QUALITY BOND TRUST
Shares Value
------ -----
PREFERRED STOCKS - 0.12%
MINING - 0.12%
Fairfield Manufacturing,
Incorporated 270 $279,450
-------
TOTAL PREFERRED STOCKS
(Cost: $279,450) $279,450
-------
Principal
Amount Value
------ -----
U.S. TREASURY OBLIGATIONS - 36.65%
U.S. TREASURY BONDS - 34.94%
7.50% due 11/15/16 $3,100,000 $3,618,289
9.25% due 02/15/16 1,500,000 2,035,305
11.625% due 11/15/04 3,100,000 4,114,754
11.875% due 11/15/03 20,000,000 26,015,600
12.00% due 08/15/13 31,200,000 45,971,328
----------
81,755,276
U.S. TREASURY NOTES - 1.71%
5.75% due 10/31/00 4,000,000 4,005,000
---------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $84,205,492) $85,760,276
----------
U.S. GOVERNMENT
AGENCY OBLIGATIONS - 10.14%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.93%
6.00% due 02/01/03 - 07/01/03 686,436 680,376
6.50% due 08/17/11 500,000 502,030
6.50% due 06/25/19, REMIC 900,000 906,462
7.00% due 06/01/23 - 01/01/26 3,716,307 3,762,878
7.50% due 06/01/10 - 04/01/11 972,480 1,000,164
---------
6,851,910
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 0.42%
5.90% due 10/25/19, REMIC 1,000,000 992,180
-------
The accompanying notes are an integral part of the financial statements.
154
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 6.78%
6.50% due 07/15/08 - 05/15/09 $184,992 $186,840
7.00% due 04/15/23 - 02/15/24 7,618,933 7,706,919
7.50% due 04/15/02 - 01/15/24 3,711,486 3,811,843
8.00% due 06/15/23 - 10/15/23 2,095,593 2,181,386
8.50% due 09/15/16 - 04/15/22 1,867,573 1,985,240
9.50% due 10/15/09 816 905
----------
15,873,133
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (Cost: $23,053,945) $23,717,223
----------
FOREIGN GOVERNMENT OBLIGATIONS - 0.82%
REPUBLIC OF ARGENTINA - 0.82%
11.00% due 10/09/06 1,800,000 1,921,500
---------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost: $1,975,500) $1,921,500
---------
CORPORATE BONDS - 27.06%
APPAREL & TEXTILES - 0.18%
Clark-Schwebel, Incorporated,
10.50% due 04/15/06 95,000 103,550
Collins & Aikman Products Company,
11.50% due 04/15/06 250,000 280,938
Pillowtex Corporation,
9.00% due 12/15/07 30,000 30,750
-------
415,238
BANKING - 5.46%
BankAmerica Corporation,
9.625% due 02/13/01 1,475,000 1,611,216
Credit National, 7.00% due 11/14/05 1,300,000 1,306,500
Export-Import Bank of Korea,
6.375% due 02/15/06 1,550,000 1,106,018
First Financial Caribbean Corporation,
7.84% due 10/10/06 450,000 473,062
First Republic Bancorp,
7.75% due 09/15/12 825,000 843,777
Korea Development Bank,
7.125% due 09/17/01 715,000 599,342
National Westminster Bank PLC,
9.45% due 05/01/01 1,000,000 1,092,470
NBD Bancorp, 8.25% due 11/01/24 2,000,000 2,370,320
Norwest Corporation,
6.00% due 03/15/00 900,000 897,534
U.S. Bancorp, 7.50% due 06/01/26 2,300,000 2,486,530
----------
12,786,769
BROADCASTING - 0.35%
Chancellor Broadcasting Company,
8.125% due 12/15/07 225,000 220,219
Granite Broadcasting Corporation,
10.375% due 05/15/05 275,000 288,062
Jacor Communications Company,
8.75% due 06/15/07 60,000 61,500
Young Broadcasting, Incorporated,
9.00% due 01/15/06 250,000 250,000
-------
819,781
BUSINESS SERVICES - 0.65%
International Lease Finance
Corporation, 7.50% due 03/01/99 1,500,000 1,521,855
---------
CHEMICALS - 0.19%
Huntsman Corporation,
9.50% due 07/01/07 135,000 141,750
Sovereign Specialty Chemicals,
9.50% due 08/01/07 35,000 35,963
Texas-Petro Chemical Corporation,
11.125% due 07/01/06 250,000 270,000
-------
447,713
COSMETICS & TOILETRIES - 0.11%
Revlon Worldwide Corporation,
Series B, zero coupon due 03/15/01 370,000 258,075
-------
DRUGS & HEALTH CARE - 1.76%
Allegiance Corporation,
7.00% due 10/15/26 2,570,000 2,652,882
Owens & Minor, Incorporated,
10.875% due 06/01/06 250,000 277,500
Tenet Healthcare Corporation,
7.875% due 01/15/03 850,000 860,625
Vencor, Incorporated,
8.625% due 07/15/07 335,000 334,163
---------
4,125,170
ELECTRIC UTILITIES - 0.74%
Cleveland Electric Illuminating
Company, 7.19% due 07/01/00 1,010,000 1,024,958
Duke Energy Company,
7.50% due 04/01/99 700,000 712,159
---------
1,737,117
ELECTRONICS - 0.11%
Fairchild Semiconductor Corporation,
10.125% due 03/15/07 250,000 262,500
-------
FINANCIAL SERVICES - 5.56%
American General Finance
Corporation, 8.00% due 02/15/05 1,270,000 1,313,663
Amerus Capital I, 8.85% due 02/01/27 900,000 959,526
Associates Corporation of North America,
9.125% due 04/01/00 300,000 318,327
BanPonce Financial Corporation,
6.75% due 08/09/01 2,150,000 2,170,790
Beneficial Corporation,
8.40% due 05/15/08 350,000 396,868
The accompanying notes are an integral part of the financial statements.
155
<PAGE> 194
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
FINANCIAL SERVICES - CONTINUED
Dime Capital Trust I,
9.33% due 05/06/27 $1,200,000 $1,357,392
General Electric Capital Corporation,
8.88% due 06/18/03 600,000 681,348
Japan Financial Corporation,
8.70% due 07/30/01 1,500,000 1,619,610
9.125% due 10/11/00 500,000 537,605
Pindo Deli Financial Mauritius, Ltd.,
10.75% due 10/01/07 100,000 86,000
Sun Canada Financial Company,
7.25% due 12/15/15 1,500,000 1,576,275
Tembec Finance Corporation,
9.875% due 09/30/05 240,000 244,800
U.S. West Capital Funding,
Incorporated, 6.95% due 01/15/37 1,515,000 1,560,556
Western Financial Savings,
8.875% due 08/01/07 200,000 192,472
----------
13,015,232
FOOD & BEVERAGES - 0.07%
Del Monte Foods Company,
Step up to 12.50% due 12/15/07 275,000 157,437
-------
HOMEBUILDERS - 0.05%
Standard Pacific Corporation,
8.50% due 06/15/07 115,000 114,856
-------
INDUSTRIALS - 3.63%
Acindar Industria, Argentina,
11.25% due 02/15/04 75,000 73,875
Advanced Micro Devices,
Incorporated, 11.00% due 08/01/03 275,000 294,250
Cincinnati Milacron, Incorporated,
7.875% due 05/15/00 870,000 890,709
Concentric Network Corporation,
12.75% due 12/15/07 40,000 40,950
Decision Holdings Corporation,
Step up to 11.50% due 08/01/08 85,000 54,400
EchoStar DBS Corporation,
12.50% due 07/01/02 250,000 270,000
Elgin National Industries,
Incorporated, 11.00% due 11/01/07 210,000 217,875
GCI, Incorporated,
9.75% due 08/01/07 250,000 258,125
Globalstar L.P. Capital Corporation,
10.75% due 11/01/04 350,000 343,000
Grupo Industrial Durango,
12.625% due 08/01/03 300,000 335,250
Guitar Center Management,
11.00% due 07/01/06 120,000 133,800
Hylsa SA De CV,
9.25% due 09/15/07 205,000 200,900
International Wire Group,
Incorporated, 11.75% due 06/01/05 150,000 165,298
Iridium LLC/Capital Corporation,
11.25% due 07/15/05 370,000 364,450
JCAC, Incorporated,
10.125% due 06/15/06 100,000 108,750
Key Plastics, Incorporated,
10.25% due 03/15/07 95,000 100,700
LDM Technologies, Incorporated,
10.75% due 01/15/07 160,000 174,400
Moog, Incorporated,
10.00% due 05/01/06 150,000 165,000
Neenah Corporation,
11.125% due 05/01/07 85,000 92,863
News America Holdings,
Incorporated, 9.25% due 02/01/13 1,800,000 2,143,962
Park Ohio Industries,
Incorporated, 9.25% due 12/01/07 210,000 213,150
Pioneer Americas Acquisition
Corporation, 9.25% due 06/15/07 175,000 176,313
Repap New Brunswick, Incorporated,
10.625% due 04/15/05 275,000 261,250
Rifkin Acquisitions Partners LP,
11.125% due 01/15/06 150,000 164,625
Scotsman Group, Incorporated,
8.625% due 12/15/07 65,000 65,522
YPF Sociedad Anonima,
8.00% due 02/15/04 1,150,000 1,187,570
---------
8,496,987
INSURANCE - 1.58%
Jackson National Life Insurance
Company, 8.15% due 03/15/27 1,000,000 1,098,520
Ohio National Life Insurance
Company, 8.50% due 05/15/26 1,150,000 1,285,401
Security Benefit Life Company,
8.75% due 05/15/16 1,150,000 1,306,862
---------
3,690,783
LEISURE TIME - 0.32%
Argosy Gaming Company,
13.25% due 06/01/04 210,000 219,450
Hollywood Casino, Incorporated,
12.75% due 11/01/03 205,000 219,862
Plitt Theatres, Incorporated,
10.875% due 06/15/04 95,000 102,719
Riviera Holdings Corporation,
10.00% due 08/15/04 200,000 198,500
-------
740,531
METAL & METAL PRODUCTS - 0.05%
CSN Iron SA, 9.125% due 06/01/07 140,000 116,200
-------
The accompanying notes are an integral part of the financial statements.
156
<PAGE> 195
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
NON-BANK FINANCE - 0.47%
KFW International Financial, Incorporated,
9.125% due 05/15/01 $1,000,000 $1,090,080
---------
PETROLEUM SERVICES - 1.25%
Cross Timbers Oil Company,
8.75% due 11/01/09 55,000 56,100
9.25% due 04/01/07 210,000 218,400
Energy Corporation of America,
Incorporated, 9.50% due 05/15/07 200,000 200,000
Newfield Exploration Company,
7.45% due 10/15/07 340,000 331,740
Petroliam Nasional BHD,
7.125% due 08/15/05 1,450,000 1,383,010
Petroleos Mexicanos,
8.85% due 09/15/07 370,000 366,300
Plains Resources, Incorporated,
10.25% due 03/15/06 350,000 377,125
---------
2,932,675
PUBLISHING - 0.09%
Sullivan Graphics, Incorporated,
12.75% due 08/01/05 210,000 212,100
-------
RETAIL TRADE - 0.92%
J. Crew Group, Incorporated,
Step up to 13.125% due 10/15/08 135,000 60,750
J.C. Penney Company, Incorporated,
7.40% due 04/01/37 1,900,000 2,081,545
---------
2,142,295
STEEL - 0.19%
AK Steel Corporation,
9.125% due 12/15/06 115,000 117,587
Silgan Holdings, Incorporated,
9.00% due 06/01/09 65,000 66,463
Weirton Steel Corporation,
11.375% due 07/01/04 250,000 260,000
-------
444,050
TELECOMMUNICATION SERVICES - 0.73%
Esprit Telecom Group PLC,
11.50% due 12/15/07 60,000 61,800
Tele-Communications, Incorporated,
9.25% due 04/15/02 1,500,000 1,646,505
---------
1,708,305
TELEPHONE - 1.89%
Benedek Communications,
Step up to 13.25% due 05/15/06 215,000 161,250
Clearnet Communications,
Step up to 14.75% due 12/15/05 300,000 236,250
Comcast Cable Communications,
8.50% due 05/01/27 1,000,000 1,174,860
GST Telecommunications,
Incorporated, 12.75% due 11/15/07 210,000 219,975
Intermedia Communications,
Incorporated, 8.875% due 11/01/07 250,000 256,875
Lenfest Communications, Incorporated
8.375% due 11/01/05 200,000 205,500
MobileMedia Communications,
Incorporated, 9.375% due 11/01/07 250,000 28,750
NEXTEL Communications, Incorporated,
Step up to 9.75% due 10/31/07 660,000 405,075
Teleport Communications Group,
Step up to 11.125% due 07/01/07 270,000 220,050
WorldCom, Incorporated,
7.55% due 04/01/04 1,450,000 1,518,426
---------
4,427,011
TRANSPORTATION SERVICES - 0.40%
Iron Mountain, Incorporated,
8.75% due 09/30/09 75,000 76,875
Johnstown American Industries,
Incorporated, 11.75% due 08/15/05 300,000 327,000
Southern Railway Company,
8.75% due 10/15/03 470,000 526,353
-------
930,228
TRANSPORTATION EQUIPMENT - 0.31%
Argo-Tech Corporation,
8.625% due 10/01/07 300,000 300,750
Hayes Wheels International,
Incorporated, 11.00% due 07/15/06 200,000 223,000
K & F Industries, Incorporated,
9.25% due 10/15/07 55,000 56,375
Walbro Corporation,
9.875% due 07/15/05 150,000 152,250
-------
732,375
TOTAL CORPORATE BONDS
(Cost: $61,821,757) $63,325,363
----------
COLLATERALIZED MORTGAGE OBLIGATIONS - 1.91%
Asset Securitization Corporation,
Series 1992-D5, Class A1B,
6.66% due 02/14/41 2,110,000 2,146,925
CS First Boston Mortgage Securities
Corporation, Series 1992-C2,
Class A2, 6.52% due 07/17/07 400,000 400,875
First Union-Lehman Brothers Commercial
Mortgage Trust II, Series 1997-C2,
Class A2, 6.60% due 05/18/07 1,915,000 1,915,000
---------
4,462,800
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost: $4,451,145) $4,462,800
---------
The accompanying notes are an integral part of the financial statements.
157
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
FIXED INCOME - OTHER - 0.77%
MISCELLANEOUS ASSET BACKED SECURITIES - 0.77%
American Express Master Trust,
Series 1992, Class A,
6.60% due 05/15/00 $1,500,000 $1,510,770
Premier Auto Trust, Series 1993,
Class A2, 4.65% due 11/02/99 290,036 287,861
---------
1,798,631
TOTAL FIXED INCOME - OTHER
(Cost: $1,767,144) $1,798,631
---------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 20.79%
$48,636,883 Navigator Securities
Lending Trust, 5.74% $48,636,883
----------
REPURCHASE AGREEMENT - 1.75%
$4,094,000 Repurchase Agreement with
Lehman Brothers dated 12/31/97
at 6.57% to be repurchased at
$4,095,494 on 01/02/98,
collateralized by $11,080,000
U.S. Treasury Strip, zero
coupon due 11/15/13 (valued at
$4,305,555, including interest) $4,094,000
---------
TOTAL INVESTMENTS
(Investment Quality Bond Trust)
(Cost: $230,285,316) $233,996,126
-----------
U.S. GOVERNMENT SECURITIES TRUST
Principal
Amount Value
------ -----
U.S. TREASURY OBLIGATIONS - 12.78%
U.S. TREASURY BONDS - 0.87%
6.375% due 08/15/27 $2,100,000 $2,214,849
6.625% due 02/15/27 500,000 542,810
---------
2,757,659
U.S. TREASURY NOTES - 11.91%
5.875% due 09/30/02 7,000,000 7,038,290
6.125% due 08/15/07 22,250,000 22,865,435
6.25% due 08/31/02 6,750,000 6,888,173
6.625% due 05/15/07 750,000 793,830
----------
37,585,728
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $39,706,903) $40,343,387
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 56.21%
FEDERAL HOME LOAN BANK - 1.05%
5.94% due 06/13/00 3,300,000 3,310,296
---------
FEDERAL HOME LOAN
MORTGAGE CORPORATION - 13.00%
6.00% due 10/01/10 994,396 983,517
6.50% due 07/01/06 9,391 9,422
7.00% due 12/01/04 - 04/15/21 32,867,096 33,433,290
7.50% due 05/01/07 3,604,673 3,709,857
8.25% due 07/01/06 132,811 136,920
9.50% due 08/01/20 2,413,910 2,590,150
11.75% due 07/01/06 - 12/01/13 154,991 175,197
----------
41,038,353
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 30.08%
6.50% TBA** 6,600,000 6,517,500
6.50% due 12/01/03 - 04/01/26 22,725,000 22,515,667
6.74% due 08/25/07 9,000,000 9,289,687
6.783% due 01/17/03, REMIC 2,183,812 2,206,109
6.909% due 06/25/16, REMIC 6,000,000 6,159,375
7.00% TBA** 31,225,000 31,449,195
7.50% TBA** 500,000 511,715
8.00% due 08/01/04 - 10/01/24 25,369 26,066
8.25% due 09/01/08 250,022 261,263
8.50% due 02/01/09 47,747 50,090
8.75% due 08/01/09 - 10/01/11 1,968,885 2,067,825
10.00% due 04/01/16 5,046 5,542
10.50% due 03/01/16 8,268 8,575
11.50% due 09/01/13 - 09/01/19 2,307,883 2,642,411
11.75% due 09/01/11 - 12/01/15 117,553 135,799
12.00% due 10/01/15 - 04/01/16 3,617,449 4,218,636
12.50% due 08/01/11 - 09/01/15 2,258,883 2,685,947
13.00% due 11/01/15 1,811,974 2,171,538
13.50% due 11/01/14 883,055 1,086,986
14.50% due 11/01/14 742,827 914,374
----------
94,924,300
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 10.66%
7.50% due 02/15/07 - 12/15/27 25,524,273 26,147,631
8.00% due 10/15/05 11,688 12,128
9.00% due 02/20/16 - 10/20/17 6,630,103 7,173,021
9.50% due 09/15/20 263,586 285,725
11.00% due 09/15/15 30,735 35,067
----------
33,653,572
STUDENT LOAN
MARKETING ASSOCIATION - 1.41%
7.50% due 03/08/00 4,300,000 4,446,458
---------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost: $174,451,495) $177,372,979
-----------
The accompanying notes are an integral part of the financial statements.
158
<PAGE> 197
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
SHORT TERM INVESTMENT - 9.38%
$29,590,565 Navigator Securities
Lending Trust, 5.74% $29,590,565
----------
REPURCHASE AGREEMENTS - 21.63%***
$34,136,000 Repurchase Agreement with
State Street Bank & Trust Company
dated 12/31/97 at 5.00%, to be
repurchased at $34,145,482 on
01/02/98, collateralized by
$22,615,000 U.S. Treasury Bonds,
10.625% due 08/15/15 (valued at
$35,721,155, including interest) $34,136,000
----------
34,136,000 Repurchase Agreement with Merrill
Lynch dated 12/31/97 at 6.60%, to
be repurchased at $34,148,517 on
01/02/98, collateralized by
$33,280,000 U.S. Treasury Notes,
6.50% due 08/31/01 (valued at
$35,548,234, including interest) 34,136,000
----------
68,272,000
TOTAL INVESTMENTS
(U.S. Government Securities Trust)
(Cost: $312,020,963) $315,578,931
-----------
MONEY MARKET TRUST
Principal
Amount Value
------ -----
U.S. GOVERNMENT
AGENCY OBLIGATIONS - 11.60%
FEDERAL HOME LOAN BANKS - 5.41%
5.775% due 10/30/98 $13,500,000 $13,501,634
6.00% due 12/30/98 10,000,000 10,000,000
----------
23,501,634
STUDENT LOAN MARKETING ASSOCIATION - 6.19%
5.619% due 09/28/98 9,000,000 9,000,000
5.629% VR due 01/02/98 7,900,000 7,900,293
5.779% due 04/16/98 10,000,000 9,998,481
----------
26,898,774
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS $50,400,408
----------
COMMERCIAL PAPER - 88.08%
AC Acquisition Holdings
Company, 5.68% due 02/10/98 16,600,000 16,495,236
Allianz of America Finance,
5.70% due 02/03/98 2,330,000 2,317,826
5.70% due 02/10/98 7,875,000 7,825,125
Bank of Nova Scotia,
5.59% due 02/03/98 19,500,000 19,400,079
Bil North America, Incorporated,
5.59% due 01/23/98 15,000,000 14,948,758
Caterpillar Financial Services NV,
5.55% due 01/16/98 15,000,000 14,965,312
Cregem North America, Incorporated,
5.60% due 01/29/98 4,100,000 4,082,142
5.685% due 02/18/98 15,000,000 14,886,300
CXC, Incorporated,
5.62% due 01/29/98 15,000,000 14,934,433
Daimler-Benz of North America,
5.50% due 01/05/98 20,000,000 19,987,778
Delaware Funding Corporation,
5.56% due 01/16/98 20,000,000 19,953,667
Duff & Phelps Utility
Corporation, 5.78% due 01/06/98 3,000,000 2,997,592
Ford Motor Credit Company,
5.48% due 01/27/98 15,000,000 14,940,633
General Electric Capital Corporation,
5.55% due 01/15/98 5,000,000 4,989,208
5.58% due 02/20/98 15,000,000 14,883,750
Goldman Sachs Group LP,
5.65% due 03/24/98 20,000,000 19,742,611
Household Financial Corporation,
5.64% due 02/11/98 20,000,000 19,871,533
International Lease Finance Corporation,
5.50% due 01/12/98 10,000,000 9,983,194
5.53% due 01/23/98 10,000,000 9,966,206
Merrill Lynch & Company, Incorporated,
5.50% due 01/14/98 10,000,000 9,980,139
5.55% due 01/08/98 5,300,000 5,294,280
New York Life Capital Corporation,
5.58% due 02/09/98 10,000,000 9,939,550
Peoples Security Life Insurance,
Company, 5.88% VR due 02/01/98 10,000,000 10,000,000
Province of Quebec,
5.58% due 02/04/98 15,000,000 14,920,950
PHH Corporation,
5.55% due 01/26/98 20,000,000 19,922,917
Royal Bank of Canada,
5.619% due 03/18/98 20,000,000 19,762,754
Toronto Dominion Holdings,
5.54% due 01/26/98 20,000,000 19,923,057
Travelers Insurance Company,
5.925% due 06/01/98 6,000,000 6,000,000
Trident Capital Finance,
5.68% due 02/12/98 10,000,000 9,933,733
Winn-Dixie Stores, Incorporated,
5.68% due 02/03/98 10,000,000 9,947,933
---------
TOTAL COMMERCIAL PAPER $382,796,696
-----------
The accompanying notes are an integral part of the financial statements.
159
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MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
Principal
Amount Value
------ -----
REPURCHASE AGREEMENT - 0.32%
$1,391,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/97 at 5.85%, to
be repurchased at $1,391,452 on
01/02/98, collateralized by
$1,390,000 U.S. Treasury Notes,
5.875% due 02/28/99 (valued at
$1,447,867, including interest) $1,391,000
---------
TOTAL INVESTMENTS
(Money Market Trust) (Note 2) $434,588,104
-----------
LIFESTYLE AGGRESSIVE 1000 TRUST
Shares Value
------ -----
COMMON STOCKS - 100.00%
INVESTMENT COMPANIES - 100.00%
Manufacturers Investment Trust
Blue Chip Growth Trust 163,673 $2,455,094
Emerging Growth Trust 203,489 4,910,188
Equity Trust 114,190 2,455,094
Growth Trust 142,655 2,455,094
International Small Cap Trust 358,408 4,910,188
International Stock Trust 642,134 7,365,282
Pilgrim Baxter Growth Trust 785,630 9,820,376
Small Company Value Trust 822,477 9,820,376
Real Estate Securities Trust 244,653 4,910,188
----------
49,101,880
TOTAL INVESTMENTS
(Lifestyle Aggressive 1000 Trust)
(Cost: $48,871,953) $49,101,880
==========
LIFESTYLE GROWTH 820 TRUST
Shares Value
------ -----
COMMON STOCKS - 100.00%
INVESTMENT COMPANIES - 100.00%
Manufacturers Investment Trust
Blue Chip Growth Trust 723,857 $10,857,848
Emerging Growth Trust 449,973 10,857,848
Equity Trust 505,016 10,857,848
Equity-Income Trust 629,806 10,857,847
Growth Trust 630,903 10,857,848
High Yield Trust 800,726 10,857,847
International Small Cap Trust 792,544 10,857,847
International Stock Trust 2,839,890 32,573,542
Pilgrim Baxter Growth Trust 1,737,256 21,715,695
Small Company Value Trust 1,818,735 21,715,692
Real Estate Securities Trust 540,999 10,857,848
Strategic Bond Trust 1,754,095 21,715,694
U.S. Government Securities Trust 804,285 10,857,847
Value Trust 1,467,277 21,715,698
-----------
217,156,949
TOTAL INVESTMENTS
(Lifestyle Growth 820 Trust)
(Cost: $214,958,102) $217,156,949
===========
LIFESTYLE BALANCED 640 TRUST
Shares Value
------ -----
COMMON STOCKS - 100.00%
INVESTMENT COMPANIES - 100.00%
Manufacturers Investment Trust
Emerging Growth Trust 386,762 $9,332,574
Equity Trust 434,073 9,332,574
Equity-Income Trust 541,333 9,332,574
Growth Trust 542,276 9,332,574
High Yield Trust 688,243 9,332,574
International Stock Trust 1,627,301 18,665,148
Investment Quality Bond Trust 769,380 9,332,574
Money Market Trust 933,257 9,332,575
Pilgrim Baxter Growth Trust 746,606 9,332,574
Quantitative Equity Trust 414,781 9,332,574
Small Company Value Trust 1,563,245 18,665,147
Real Estate Securities Trust 465,001 9,332,574
Strategic Bond Trust 1,507,686 18,665,147
U.S. Government Securities Trust 1,382,604 18,665,149
Value Trust 1,261,159 18,665,147
-----------
186,651,479
TOTAL INVESTMENTS
(Lifestyle Balanced 640 Trust)
(Cost: $183,176,848) $186,651,479
===========
LIFESTYLE MODERATE 460 TRUST
Shares Value
COMMON STOCKS - 100.00%
INVESTMENT COMPANIES - 100.00%
Manufacturers Investment Trust
Blue Chip Growth Trust 351,638 $5,274,563
Equity-Income Trust 305,949 5,274,562
High Yield Trust 194,490 2,637,281
International Stock Trust 459,857 5,274,563
Investment Quality Bond Trust 434,836 5,274,565
Money Market Trust 791,184 7,911,844
Quantitative Equity Trust 117,213 2,637,281
Strategic Bond Trust 426,055 5,274,563
U.S. Government Securities Trust 586,063 7,911,844
Value Trust 356,389 5,274,563
----------
52,745,629
TOTAL INVESTMENTS
(Lifestyle Moderate 460 Trust)
(Cost: $51,481,755) $52,745,629
==========
The accompanying notes are an integral part of the financial statements.
160
<PAGE> 199
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1997 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
LIFESTYLE CONSERVATIVE 280 TRUST
Shares Value
------ -----
COMMON STOCKS - 100.00%
INVESTMENT COMPANIES - 100.00%
Manufacturers Investment Trust
Blue Chip Growth Trust 65,833 $987,500
Equity-Income Trust 114,559 1,975,001
Investment Quality Bond Trust 244,229 2,962,501
Money Market Trust 592,502 5,925,015
Quantitative Equity Trust 87,778 1,975,001
Strategic Bond Trust 79,766 987,500
U.S. Government Securities Trust 365,741 4,937,501
----------
19,750,019
TOTAL INVESTMENTS
(Lifestyle Conservative 280 Trust)
(Cost: $19,278,876) $19,750,019
==========
Key to Currency Abbreviations
AUD - Australian Dollar
BEF - Belgian Franc
CAD - Canadian Dollar
DKK - Danish Krone
FIM - Finnish Markka
FRF - French Franc
DEM - German Deustche Mark
P - Great British Pound
HKD - Hong Kong Dollar
IDR - Indonesian Rupiah
IEP - Irish Punt
ITL - Italian Lira
KRW - Korean Wan
Y - Japanese Yen
MYR - Malaysian Ringgit
NLG - Netherland Guilder
NZD - New Zealand Dollar
SGD - Singapore Dollar
ZAR - South African Rand
ESP - Spanish Peseta
SEK - Swedish Krone
CHF - Swiss Franc
THB - Thailand Baht
Key to Security Abbreviations and Legend
ADR - American Depository Receipt
ADS - American Depository Shares
FRN - Floating Rate Note
GTD - Guaranteed
IO - Interest Only (Carries notional principal amount)
REIT - Real Estate Investment Trust
REMIC - Real Estate Mortgage Investment Conduit
TBA - To Be Announced
VR - Variable Rate Demand Note (Rate effective
as of December 31, 1997)
(1) - Non-Income producing, issuer is in bankruptcy
and is in default of interest payments.
* - Non-Income producing
** - Purchased on a forward commitment (Note 2)
*** - At December 31, 1997 a portion of this security
was pledged to cover forward commitments purchased.
**** - At December 31, 1997 a portion of this security was pledged to
cover margin requirements for open futures contracts.
The accompanying notes are an integral part of the financial statements.
161
<PAGE> 200
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION OF THE TRUST. The Manufacturers Investment Trust (the "Trust"),
formerly NASL Series Trust, is a no-load, open-end management investment company
organized as a Massachusetts business trust. It is a series company, which means
that it has several portfolios, each with a stated investment objective which it
pursues through separate investment policies. The Trust currently offers the
following thirty six Portfolios: The Pacific Rim Emerging Markets Trust
("Pacific Rim Emerging Markets"), the Science & Technology Trust ("Science &
Technology"), the International Small Cap Trust ("International Small Cap"), the
Emerging Growth Trust ("Emerging Growth"), the Pilgrim Baxter Growth Trust
("Pilgrim Baxter Growth"), the Small/Mid Cap Trust ("Small/Mid Cap"), the
International Stock Trust ("International Stock"), the Worldwide Growth Trust
("Worldwide Growth"), the Global Equity Trust ("Global Equity"), the Small
Company Value Trust ("Small Company Value"), the Equity Trust ("Equity"), the
Growth Trust ("Growth"), the Quantitative Equity Trust ("Quantitative Equity"),
the Equity Index Trust ("Equity Index"), the Blue Chip Growth Trust ("Blue Chip
Growth"), the Real Estate Securities Trust ("Real Estate Securities"), the Value
Trust ("Value"), the International Growth and Income Trust ("International
Growth and Income"), the Growth and Income Trust ("Growth and Income"), the
Equity-Income Trust ("Equity-Income"), the Balanced Trust ("Balanced"), the
Aggressive Asset Allocation Trust ("Aggressive Asset Allocation"), the Moderate
Asset Allocation Trust ("Moderate Asset Allocation"), the Conservative Asset
Allocation Trust ("Conservative Asset Allocation"), the High Yield Trust ("High
Yield"), the Strategic Bond Trust ("Strategic Bond"), the Global Government Bond
Trust ("Global Government Bond"), the Capital Growth Bond Trust ("Capital Growth
Bond"), the Investment Quality Bond Trust ("Investment Quality Bond"), the U.S.
Government Securities Trust ("U.S. Government Securities"), the Money Market
Trust ("Money Market"), the Lifestyle Aggressive 1000 Trust ("Lifestyle
Aggressive 1000"), the Lifestyle Growth 820 Trust ("Lifestyle Growth 820"), the
Lifestyle Balanced 640 Trust ("Lifestyle Balanced 640"), the Lifestyle Moderate
460 Trust ("Lifestyle Moderate 460") and the Lifestyle Conservative 280 Trust
("Lifestyle Conservative 280"). Each of the Portfolios with the exception of
Emerging Growth, Global Government Bond, Lifestyle Aggressive 1000, Lifestyle
Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle
Conservative 280 is diversified for purposes of the Investment Company Act of
1940, as amended.
Shares of the Portfolios are presently offered only to Separate Accounts A, B
and C, separate accounts of The Manufacturers Life Insurance Company of North
America ("MNA"), to Separate Account A, a separate account of The Manufacturers
Life Insurance Company of New York ("MNY"), to Separate Accounts One, Two,
Three, and Four, separate accounts of The Manufacturers Life Insurance Company
of America ("Manulife America") and in the case of certain Portfolios, to
unregistered separate accounts issued by The Manufacturers Life Insurance
Company (U.S.A.) ("Manulife USA"). MNA is controlled by The Manufacturers Life
Insurance Company ("Manulife"), a mutual life insurance company based in
Toronto, Canada. MNY is a wholly-owned subsidiary of MNA. Manulife America and
Manulife USA are wholly-owned subsidiaries of Manulife.
At December 31, 1997, Manulife America owned seed money shares in Pacific Rim
Emerging Markets, International Stock, and Equity Index. Manulife USA owned seed
money shares in Science & Technology, Pilgrim Baxter Growth, Worldwide Growth,
Value and High Yield.
Manufacturers Securities Services, LLP ("MSS"), formerly NASL Financial
Services, a wholly-owned subsidiary of MNA, serves as investment adviser for the
Trust (See Note 6). MSS is also the principal underwriter of the variable
contracts issued by MNA and MNY.
NAME CHANGE. Effective October 1, 1997, the Trustees, including a majority of
Trustees who are not interested persons of the Trust, voted to approve a name
change for the Trust from NASL Series Trust to Manufacturers Investment Trust.
NEW PORTFOLIOS. On January 1, 1997, Science & Technology, Pilgrim Baxter Growth,
Worldwide Growth, Value and High Yield commenced operations. In addition, also
effective January 1, 1997, Emerging Growth, International Stock and Balanced
were reorganized whereby all assets and liabilities of these existing Portfolios
were transferred to form new Portfolios of the Trust. Concurrent with this
reorganization, the subadvisors to these Portfolios were changed. T. Rowe Price
Associates, Inc. ("T. Rowe Price") is the subadviser to Science & Technology,
Warburg Pincus Asset Management, Inc. ("Warburg Pincus") is the subadviser to
Emerging Growth, Pilgrim Baxter & Associates ("PBHG") is the subadviser to
Pilgrim Baxter Growth, Rowe Price-Fleming International, Inc. ("Price-Fleming")
is the subadviser to International Stock, Founders Asset Management, Inc.
("Founders") is the subadviser to Worldwide Growth and Balanced and Miller
Anderson & Sherrerd, LLP ("MAS") is the subadviser to Value and High Yield. On
January 7, 1997, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle
Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative 280 commenced
operations. Manufacturers Adviser Corporation ("MAC") is the subadviser to
Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640,
Lifestyle Moderate 460 and Lifestyle Conservative 280. Small Company Value,
managed by Rosenberg Institutional Equity Management ("Rosenberg") commenced
operations on October 1, 1997.
162
<PAGE> 201
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES. The policies described below are followed by
the Trust in the preparation of the financial statements.
SECURITY VALUATION. Securities held by Money Market and short term instruments
with remaining maturities of 60 days or less held by the other Portfolios of the
Trust are valued at amortized cost basis, which approximates market value. All
other securities held by the Portfolios are valued at the last sale price as of
the close of business on a principal securities exchange (domestic or foreign)
or, lacking any sales, at the closing bid price. Securities traded only in the
over-the-counter market are valued at the last bid price quoted by brokers
making markets in the securities at the close of trading.
Portfolio securities for which there are no such quotations, principally debt
securities, are valued on the basis of the valuation provided by a pricing
service which utilizes both dealer-supplied and electronic data processing
techniques. Other assets and securities for which no such quotations are readily
available are valued at their fair value as determined in good faith under
consistently applied procedures established by and under the general supervision
of the Board of Trustees.
FOREIGN CURRENCY TRANSLATIONS. The accounting records of the Trust are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars on the following basis:
(i) market value of securities, other assets and other liabilities at
the current rate of exchange of such currencies against U.S.
dollars; and
(ii) purchases and sales of securities, income and expenses at the rate
of exchange quoted on the respective dates of such transactions.
Gains and losses that arise from changes in foreign exchange rates have been
segregated from gains and losses that arise from changes in the market prices of
investments. These gains and losses are included with gains and losses on
foreign currency and forward foreign currency contracts in the Statements of
Operations.
FORWARD FOREIGN CURRENCY CONTRACTS. All portfolios with the exception of Equity
Index, Real Estate Securities, Investment Quality Bond, U.S. Government
Securities, Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820,
Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative 280
may purchase and sell forward foreign currency contracts in order to hedge a
specific transaction or portfolio position. Forward foreign currency contracts
are valued at forward foreign currency exchange rates and marked to market
daily.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held at the end of the period, the resulting net unrealized
appreciation (depreciation) and related net receivable or payable amount are
determined using forward foreign currency exchange rates supplied by a quotation
service. The Portfolios could be exposed to risks if the counterparties to the
contracts are unable to meet the terms of their contracts or if the value of the
forward foreign currency contract changes unfavorably.
Net realized gains (losses) on foreign currency and forward foreign currency
contracts shown in the Statements of Operations, include net gains or losses
realized by a Portfolio on contracts which have matured or which the Portfolio
has terminated by entering into an offsetting commitment with the same broker.
FUTURES. All Portfolios with the exception of Real Estate Securities, Investment
Quality Bond, Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820,
Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative 280
may purchase and sell financial futures contracts and options on those
contracts. The Portfolios invest in contracts based on financial instruments
such as U.S. Treasury Bonds or Notes or on securities indices such as the S&P
500 Index, in order to hedge against a decline in the value of securities owned
by the Portfolios.
When a Portfolio sells a futures contract based on a financial instrument, the
Portfolio becomes obligated to deliver that kind of instrument at an agreed upon
date for a specified price. The Portfolio realizes a gain or loss depending on
whether the price of an offsetting purchase is less or more than the price of
the initial sale or on whether the price of an offsetting sale is more or less
than the price of the initial purchase . The Portfolios could be exposed to
risks if it could not close out futures positions because of an illiquid
secondary market or the inability of counterparties to meet the terms of their
contracts. Upon entering into futures contracts, the Portfolio is required to
deposit with a broker an amount, initial margin, which typically represents 5%
of the purchase price indicated in the futures contract.
Payments to and from the broker, known as variation margin, are required to be
made on a daily basis as the price of the futures contract fluctuates, making
the long or short positions in the contract more or less valuable. If the
position is closed out by taking an opposite position prior to the settlement
date of the futures contract, a final determination of variation margin is made,
cash is required to be paid to or released by the broker, and the Portfolio
realizes a gain or loss.
163
<PAGE> 202
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
The following is a summary of open futures contracts at December 31, 1997:
<TABLE>
<CAPTION>
SALES OF FUTURES CONTRACTS PURCHASES OF FUTURES CONTRACTS
---------------------------------------- -----------------------------------------
NUMBER AGGREGATE NUMBER AGGREGATE
EXPIRATION OF OPEN MARKET VALUE UNREALIZED OF OPEN MARKET VALUE UNREALIZED
DATE CONTRACTS OF CONTRACTS LOSS CONTRACTS OF CONTRACTS GAIN/LOSS
------------ ---------- ---------------- ----------- ---------- ---------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
EQUITY INDEX:
S&P 500 Futures.............. March 1998 -- -- 22 $5,385,050 $65,634
AGGRESSIVE ASSET ALLOCATION:
S&P 500 Futures.............. March 1998 6 $1,468,650 ($4,866) -- --
CAC 40 Futures............... March 1998 -- -- 8 FRF 4,840,800 (20,976)
DAX 30 Futures............... March 1998 -- -- 5 DEM 2,139,250 93,895
FTSE 100 Futures............. March 1998 -- -- 5 P 647,875 80,141
NIKKEI 300 Futures........... March 1998 -- -- 62 Y 147,126,000 (255,473)
MODERATE ASSET ALLOCATION:
S&P 500 Futures.............. March 1998 12 2,937,300 (9,732) -- --
CAC 40 Futures............... March 1998 -- -- 4 FRF 2,420,400 (22,402)
DAX 30 Futures............... March 1998 -- -- 2 DEM 855,700 82,968
FTSE 100 Futures............. March 1998 -- -- 2 P 259,150 97,572
NIKKEI 300 Futures........... March 1998 -- -- 27 Y 64,071,000 (173,312)
CONSERVATIVE ASSET ALLOCATION:
S&P 500 Futures.............. March 1998 2 469,550 1,772 -- --
</TABLE>
FORWARD COMMITMENTS. All Portfolios with the exception of Lifestyle Aggressive
1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460 and
Lifestyle Conservative 280 may purchase debt securities on a when issued or
forward delivery basis, which means that the obligations will be delivered to
the Portfolios of the Trust at a future date, which may be a month or more after
the date of commitment. The price of the underlying securities and the date when
the securities will be delivered and paid for are fixed at the time the
transaction is negotiated. The value of the securities underlying a forward
commitment to purchase securities, and the subsequent fluctuations in their
value, are taken into account when determining the Portfolio's net asset value
starting on the day the Portfolio agrees to purchase the securities. At December
31, 1997, forward commitments in Strategic Bond and U.S. Government Securities
were valued at $41,146,842 and $38,478,410, respectively.
SECURITIES LENDING. All Portfolios with the exception of Lifestyle Aggressive
1000, Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460 and
Lifestyle Conservative 280 may lend securities in amounts up to 33 1/3% of its
total non-cash assets to brokers, dealers and other financial institutions,
provided such loans are callable at any time and are at all times fully secured
by cash, cash equivalents or securities issued or guaranteed by the U.S.
government or its agencies or instrumentalities, marked to market to the value
of the loaned securities on a daily basis. The Portfolios may bear the risk of
delay in recovery of, or even of rights in, the securities loaned should the
borrower of the securities fail financially. Consequently, loans of Portfolio
securities will only be made to firms deemed by the subadvisers to be
creditworthy. The Portfolios receive compensation for lending its securities
either in the form of fees or by retaining a portion of interest on the
investment of any cash received as collateral. Income generated from the
investment of cash collateral is included as interest income in the Statement of
Operations. All collateral received will be in an amount equal to at least 100%
of the market value of the loaned securities and must be maintained at that
level during the period of the loan. During the loan period, the Portfolio
continues to retain rights of ownership, including dividends and interest of the
loaned securities.
At December 31, 1997, the value of the securities loaned amounted to $1,490,350,
$13,611,016, $9,824,123, $65,312,522, $37,541,612, $17,085,652, $4,883,669,
$50,105,089, $190,760,729, $18,482,172, $13,124,693, $3,863,859, $55,897,235,
$22,329,636, $12,321,889, $30,478,510, $75,229,383, $41,733,409, $10,738,299,
$23,947,743, $54,572,939, $4,850,423, $10,198,532, $73,906,137, $2,801,609,
$47,995,504 and $29,201,997 in Pacific Rim Emerging Markets, Science &
Technology, International Small Cap, Emerging Growth, Small/Mid Cap,
International Stock, Worldwide Growth, Global Equity, Equity, Growth,
Quantitative Equity, Equity Index, Blue Chip Growth, Real Estate Securities,
Value, International Growth and Income, Growth and Income, Equity-Income,
Balanced, Aggressive Asset Allocation, Moderate Asset Allocation, Conservative
Asset Allocation, High Yield, Strategic Bond, Capital Growth Bond, Investment
Quality Bond and U.S. Government Securities, respectively.
164
<PAGE> 203
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
At December 31, 1997, the value of collateral amounted to $1,589,540,
$14,020,686, $10,214,498, $66,418,106, $38,431,346, $17,946,172, $5,032,012,
$53,383,326, $194,776,908, $19,081,662, $13,357,643, $3,954,637, $56,669,960,
$23,007,430, $12,675,676, $32,349,003, $77,127,781, $42,557,216, $10,920,106,
$24,716,245, $56,027,675, $5,035,515, $10,489,036, $75,776,050, $2,860,600,
$48,836,383 and $29,590,565 in Pacific Rim Emerging Markets, Science &
Technology, International Small Cap, Emerging Growth, Small/Mid Cap,
International Stock, Worldwide Growth, Global Equity, Equity, Growth,
Quantitative Equity, Equity Index, Blue Chip Growth, Real Estate Securities,
Value, International Growth and Income, Growth and Income, Equity-Income,
Balanced, Aggressive Asset Allocation, Moderate Asset Allocation, Conservative
Asset Allocation, High Yield, Strategic Bond, Capital Growth Bond, Investment
Quality Bond and U.S. Government Securities, respectively.
MORTGAGE DOLLAR ROLLS. Strategic Bond and U.S. Government Securities may enter
into mortgage dollar rolls in which they sell mortgage securities for delivery
currently and simultaneously contract to repurchase similar, but not identical,
securities at the same price on an agreed upon date. The Portfolios receive
compensation as consideration for entering into the commitment to repurchase.
The compensation is recorded as deferred income and amortized to income over the
roll period. As the holder, the counterparty receives all principal and interest
payments, including prepayments, made with respect to the similar security.
Mortgage dollar rolls may be renewed with a new sale and repurchase price with a
cash settlement made at renewal without physical delivery of the securities
subject to the contract.
ORGANIZATION COSTS. Costs incurred by a Portfolio in connection with its
organization, initial registration and public offering of shares are being
amortized on a straight-line basis for International Growth and Income,
Equity-Income and Strategic Bond over a five-year period beginning with the
commencement of operations of each Portfolio.
FEDERAL INCOME TAXES. The Trust's and Portfolios policy is to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code, as
amended, and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required. Each Portfolio of the
Trust is treated as a separate taxpayer for federal income tax purposes.
DISTRIBUTION OF INCOME AND GAINS. All of the net investment income of Money
Market, Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle
Conservative 280 is declared as a dividend to shareholders of record as of the
close of business each day and is reinvested daily. During any particular year,
net realized gains from investment transactions of each Portfolio, in excess of
available capital loss carryforwards of each Portfolio would be taxable to such
Portfolio if not distributed. Therefore, each Portfolio of the Trust intends to
distribute all of its investment company taxable income and any net realized
capital gains in order to avoid federal income tax. The Portfolios'
distributions are based on income amounts determined in accordance with federal
income tax regulations. The character of distributions made during the year from
net investment income and net realized gains may differ for tax purposes due to
various differences in recording net investment income and realized gains for
financial statement and tax purposes.
EXPENSE ALLOCATION. Expenses not directly attributable to a particular Portfolio
are allocated based on the relative share of net assets of each Portfolio at the
time the expense was incurred, except as discussed in footnote 5.
REPURCHASE AGREEMENTS. Each Portfolio of the Trust may enter into repurchase
agreements. When a Portfolio enters into a repurchase agreement through its
custodian, it receives delivery of securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value is 102% of the repurchase amount. Each
Portfolio will take constructive receipt of all securities underlying the
repurchase agreements it has entered into until such agreements expire. If the
seller defaults, a Portfolio would suffer a loss to the extent that proceeds
from the sale of underlying securities were less than the repurchase amount.
CAPITAL ACCOUNTS. The Portfolios report the undistributed net investment income
and accumulated undistributed net realized gain (loss) accounts on a basis
approximating amounts available for future tax distributions (or to offset
future taxable realized gains when a capital loss carryforward is available).
Accordingly, each Portfolio of the Trust may periodically make reclassifications
among certain capital accounts without impacting its net asset value.
OTHER. Investment security transactions are accounted for on the trade date.
Interest income is accrued as earned. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Foreign dividends are
recorded on the ex-date or as soon after the ex-date that the Portfolio is aware
of such dividends, net of all taxes. All original issue discounts are accreted
for financial and tax reporting purposes. The Portfolios use the First In, First
Out method for determining realized gain or loss on investments for both
financial and federal income tax reporting purposes. 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 at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results may differ from these estimates.
165
<PAGE> 204
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
3. CAPITAL LOSS CARRYFORWARDS. At
December 31, 1997, capital loss carryforwards available to offset future
realized gains were approximately:
<TABLE>
<CAPTION>
CAPITAL LOSS CARRYFORWARD
EXPIRATION YEAR
-------------------------------------------------------------------------------
PORTFOLIO 2002 2003 2004 2005
- ------------------ ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
International Small Cap..................... -- -- $426,000 $3,982,000
Pilgrim Baxter Growth....................... -- -- -- 4,038,000
Small/Mid Cap............................... -- -- 1,180,000 --
Small Company Value......................... -- -- -- 732,000
Capital Growth Bond......................... $644,000 -- 213,000 --
Investment Quality Bond..................... 3,114,000 -- -- --
U.S. Government Securities.................. 2,529,000 -- -- 867,000
</TABLE>
4. CAPITAL SHARES. Share activity for the Trust for the year ended December 31,
1997 was as follows:
<TABLE>
<CAPTION>
SHARES CAPITAL
-------------------- --------------------
<S> <C> <C>
PACIFIC RIM EMERGING MARKETS
Sold........................................ 3,400,497 $32,539,805
Reinvestment of distributions............... 10,109 72,382
Redeemed.................................... (2,213,030) (20,978,785)
--------- -----------
Net increase.............................. 1,197,576 $11,633,402
========= ===========
SCIENCE & TECHNOLOGY
Sold........................................ 5,455,276 $76,940,278
Reinvestment of distributions............... 77,906 1,061,075
Redeemed.................................... (589,036) (7,987,153)
--------- -----------
Net increase.............................. 4,944,146 $70,014,200
========= ===========
INTERNATIONAL SMALL CAP
Sold........................................ 6,033,997 $84,497,104
Reinvestment of distributions............... 4,164 56,628
Redeemed.................................... (3,804,258) (53,399,946)
--------- -----------
Net increase.............................. 2,233,903 $31,153,786
========= ===========
EMERGING GROWTH
Sold........................................ 4,278,426 $94,741,094
Redeemed.................................... (2,147,743) (46,889,392)
Issued in connection with asset transfer.... 9,296,125 191,511,608
--------- ------------
Net increase.............................. 7,426,808 $239,363,310
========= ============
PILGRIM BAXTER GROWTH
Sold........................................ 8,406,519 $102,216,243
Redeemed.................................... (939,814) (11,334,741)
--------- ------------
Net increase.............................. 7,466,705 $ 90,881,502
========= ============
SMALL/MID CAP
Sold........................................ 7,383,392 $110,225,373
Redeemed.................................... (3,131,150) (45,151,663)
--------- ------------
Net increase.............................. 4,252,242 $ 65,073,710
========= ============
INTERNATIONAL STOCK
Sold........................................ 11,384,468 $136,647,399
Reinvestment of distributions............... 173,235 1,987,010
Redeemed.................................... (1,787,295) (21,507,311)
Issued in connection with asset transfer.... 2,890,613 33,142,921
---------- ------------
Net increase.............................. 12,661,021 $150,270,019
========== ============
</TABLE>
166
<PAGE> 205
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
CAPITAL SHARES, CONTINUED
<TABLE>
<CAPTION>
SHARES CAPITAL
-------------------- --------------------
<S> <C> <C>
WORLDWIDE GROWTH
Sold........................................ 1,787,771 $24,432,259
Reinvestment of distributions............... 14,864 208,696
Redeemed.................................... (74,857) (1,054,633)
--------- -----------
Net increase.............................. 1,727,778 $23,586,322
========= ===========
GLOBAL EQUITY
Sold........................................ 5,372,811 $98,427,703
Reinvestment of distributions............... 4,509,999 72,926,679
Redeemed.................................... (5,809,552) (107,408,865)
--------- -----------
Net increase.............................. 4,073,258 $63,945,517
========= ===========
SMALL COMPANY VALUE
Sold........................................ 5,662,330 $69,557,589
Redeemed.................................... (44,312) (530,637)
--------- -----------
Net increase.............................. 5,618,018 $69,026,952
========= ===========
EQUITY
Sold........................................ 8,030,182 $168,965,845
Reinvestment of distributions............... 14,581,215 258,233,327
Redeemed.................................... (11,346,571) (237,282,560)
---------- ------------
Net increase.............................. 11,264,826 $189,916,612
========== ============
GROWTH
Sold........................................ 6,715,373 $108,024,505
Reinvestment of distributions............... 163 2,287
Redeemed.................................... (1,124,814) (18,038,803)
--------- ------------
Net increase.............................. 5,590,722 $ 89,987,989
========= ============
QUANTITATIVE EQUITY
Sold........................................ 3,133,709 $64,485,410
Redeemed.................................... (989,855) (21,111,223)
--------- -----------
Net increase.............................. 2,143,854 $43,374,187
========= ===========
EQUITY INDEX
Sold........................................ 1,943,741 $24,678,547
Reinvestment of distributions............... 272,281 3,398,067
Redeemed.................................... (778,770) (9,819,130)
--------- -----------
Net increase.............................. 1,437,252 $18,257,484
========= ===========
BLUE CHIP GROWTH
Sold........................................ 16,962,808 $238,884,781
Reinvestment of distributions............... 6,465,537 77,457,126
Redeemed.................................... (5,697,993) (81,597,829)
---------- ------------
Net increase.............................. 17,730,352 $234,744,078
========== ============
REAL ESTATE SECURITIES
Sold........................................ 4,924,515 $88,035,372
Redeemed.................................... (1,362,424) (25,747,943)
--------- -----------
Net increase.............................. 3,562,091 $62,287,429
========= ===========
VALUE
Sold........................................ 10,980,659 $159,142,076
Reinvestment of distributions............... 299,130 4,427,125
Redeemed.................................... (1,509,501) (23,618,997)
--------- ------------
Net increase.............................. 9,770,288 $139,950,204
========= ============
</TABLE>
167
<PAGE> 206
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
CAPITAL SHARES, CONTINUED
<TABLE>
<CAPTION>
SHARES CAPITAL
-------------------- --------------------
<S> <C> <C>
INTERNATIONAL GROWTH AND INCOME
Sold........................................ 10,352,348 $117,674,886
Reinvestment of distributions............... 1,115,731 11,982,954
Redeemed.................................... (9,013,183) (102,808,661)
--------- ------------
Net increase.............................. 2,454,896 $ 26,849,179
========= ============
GROWTH AND INCOME
Sold........................................ 12,971,288 $281,085,010
Reinvestment of distributions............... 4,267,736 79,422,565
Redeemed.................................... (3,367,863) (72,232,962)
---------- ------------
Net increase.............................. 13,871,161 $288,274,613
========== ============
EQUITY-INCOME
Sold........................................ 13,837,627 $218,464,961
Reinvestment of distributions............... 6,521,913 89,480,654
Redeemed.................................... (4,638,631) (74,332,261)
---------- ------------
Net increase.............................. 15,720,909 $233,613,354
========== ============
BALANCED
Sold........................................ 2,059,156 $36,894,383
Redeemed.................................... (1,116,401) (20,068,809)
Issued in connection with asset transfer.... 8,216,455 134,806,542
--------- ------------
Net increase.............................. 9,159,210 $151,632,116
========= ============
AGGRESSIVE ASSET ALLOCATION
Sold........................................ 679,646 $9,394,223
Reinvestment of distributions............... 1,870,946 22,526,197
Redeemed.................................... (2,451,432) (33,450,747)
--------- ----------
Net increase (decrease)................... 99,160 ($1,530,327)
========= ==========
MODERATE ASSET ALLOCATION
Sold........................................ 860,403 $10,390,694
Reinvestment of distributions............... 5,474,371 61,148,726
Redeemed.................................... (9,320,339) (116,158,813)
--------- -----------
Net decrease.............................. (2,985,565) ($44,619,393)
========= ===========
CONSERVATIVE ASSET ALLOCATION
Sold........................................ 1,076,901 $12,425,189
Reinvestment of distributions............... 1,713,268 18,160,638
Redeemed.................................... (3,356,484) (38,387,124)
--------- ----------
Net decrease.............................. (566,315) ($7,801,297)
========= ==========
HIGH YIELD
Sold........................................ 7,004,304 $93,538,496
Reinvestment of distributions............... 254,582 3,452,134
Redeemed.................................... (417,477) (5,560,458)
--------- -----------
Net increase.............................. 6,841,409 $91,430,172
========= ===========
STRATEGIC BOND
Sold........................................ 12,161,795 $145,357,240
Reinvestment of distributions............... 1,453,112 16,245,787
Redeemed.................................... (2,607,070) (31,110,681)
---------- ------------
Net increase.............................. 11,007,837 $130,492,346
========== ============
</TABLE>
168
<PAGE> 207
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
CAPITAL SHARES, CONTINUED
<TABLE>
<CAPTION>
SHARES CAPITAL
-------------------- --------------------
<S> <C> <C>
GLOBAL GOVERNMENT BOND
Sold........................................ 445,962 $6,317,050
Reinvestment of distributions............... 1,530,040 20,181,238
Redeemed.................................... (3,299,413) (45,957,392)
--------- -----------
Net increase.............................. (1,323,411) ($19,459,104)
========= ===========
CAPITAL GROWTH BOND
Sold........................................ 1,100,955 $12,419,231
Redeemed.................................... (708,093) (7,959,276)
------- -----------
Net increase.............................. 392,862 $ 4,459,955
======= ===========
INVESTMENT QUALITY BOND
Sold........................................ 3,757,805 $44,037,489
Reinvestment of distributions............... 944,301 10,368,425
Redeemed.................................... (2,019,021) (23,604,392)
--------- -----------
Net increase.............................. 2,683,085 $30,801,522
========= ===========
U.S. GOVERNMENT SECURITIES
Sold........................................ 6,194,421 $81,409,947
Reinvestment of distributions............... 1,050,320 13,118,502
Redeemed.................................... (3,945,265) (51,864,571)
--------- -----------
Net increase.............................. 3,299,476 $42,663,878
========= ===========
MONEY MARKET
Sold........................................ 72,701,409 $727,014,088
Reinvestment of distributions............... 2,149,753 21,497,529
Redeemed.................................... (67,236,388) (672,363,876)
---------- ------------
Net increase.............................. 7,614,774 $ 76,147,741
========== ============
LIFESTYLE AGGRESSIVE 1000
Sold........................................ 3,820,037 $49,636,650
Reinvestment of distributions............... 22,372 275,584
Redeemed.................................... (197,797) (2,564,164)
--------- -----------
Net increase.............................. 3,644,612 $47,348,070
========= ===========
LIFESTYLE GROWTH 820
Sold........................................ 15,722,003 $208,934,467
Reinvestment of distributions............... 172,185 2,262,295
Redeemed.................................... (126,294) (1,693,725)
---------- ------------
Net increase.............................. 15,767,894 $209,503,037
========== ============
LIFESTYLE BALANCED 640
Sold........................................ 13,728,402 $180,016,438
Reinvestment of distributions............... 190,251 2,442,732
Redeemed.................................... (151,558) (1,962,700)
---------- ------------
Net increase.............................. 13,767,095 $180,496,470
========== ============
LIFESTYLE MODERATE 460
Sold........................................ 3,978,329 $51,517,510
Reinvestment of distributions............... 65,379 833,933
Redeemed.................................... (92,432) (1,211,121)
--------- -----------
Net increase.............................. 3,951,276 $51,140,322
========= ===========
</TABLE>
169
<PAGE> 208
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
CAPITAL SHARES, CONTINUED
<TABLE>
<CAPTION>
SHARES CAPITAL
-------------------- --------------------
<S> <C> <C>
LIFESTYLE CONSERVATIVE 280
Sold........................................ 1,519,237 $19,198,138
Reinvestment of distributions............... 25,234 308,024
Redeemed.................................... (26,947) (342,717)
--------- -----------
Net increase.............................. 1,517,524 $19,163,445
========= ===========
</TABLE>
5. PURCHASES AND SALES OF SECURITIES. The following summarizes the securities
transactions (except for short-term investments) for the Portfolios (with the
exception of Money Market) for the year ended December 31, 1997:
<TABLE>
<CAPTION>
PURCHASES SALES
-------------------------------------- ---------------------------------------
PORTFOLIO U.S. GOVERNMENT OTHER ISSUES U.S. GOVERNMENT OTHER ISSUES
----------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Pacific Rim Emerging Markets........ -- $20,573,217 -- $13,802,893
Science & Technology................ -- 101,895,920 -- 39,275,981
International Small Cap............. -- 86,703,231 -- 69,086,144
Emerging Growth..................... -- 368,191,802 -- 231,329,283
Pilgrim Baxter Growth............... -- 117,930,914 -- 29,135,551
Small/Mid Cap....................... -- 347,757,745 -- 299,724,666
International Stock................. -- 139,940,638 -- 32,114,037
Worldwide Growth.................... -- 26,288,767 -- 8,116,100
Global Equity....................... -- 282,732,746 -- 259,726,754
Small Company Value*................ -- 79,902,241 -- 11,587,359
Equity.............................. -- 3,088,809,325 -- 3,154,584,852
Growth.............................. -- 236,264,860 -- 165,112,426
Quantitative Equity................. -- 178,450,940 -- 139,002,323
Equity Index........................ -- 21,358,532 -- 458,718
Blue Chip Growth.................... -- 335,112,351 -- 186,132,772
Real Estate Securities.............. -- 243,779,445 -- 173,099,465
Value............................... -- 146,863,079 -- 25,885,501
International Growth and Income..... -- 335,579,590 -- 309,113,646
Growth and Income................... -- 633,517,513 -- 442,181,054
Equity-Income....................... -- 320,249,766 -- 171,721,637
Balanced............................ $75,034,928 263,596,684 $31,352,131 286,189,838
Aggressive Asset Allocation......... 26,465,619 175,231,873 43,929,378 220,791,841
Moderate Asset Allocation........... 107,248,551 343,653,109 200,040,761 342,481,720
Conservative Asset Allocation....... 98,929,063 58,847,589 120,347,928 57,030,314
High Yield.......................... 1,773,059 107,985,909 -- 29,037,823
Strategic Bond...................... 129,480,684 312,031,113 119,284,520 232,661,015
Global Government Bond.............. 56,809,087 284,398,811 70,922,246 286,916,127
Capital Growth Bond................. 13,745,096 21,934,779 11,993,554 20,067,514
Investment Quality Bond............. 46,829,582 54,827,292 15,575,007 58,103,122
U.S. Government Securities.......... 244,784,871 -- 204,671,603 369,145
Lifestyle Aggressive 1000**......... -- 62,984,819 -- 15,639,396
Lifestyle Growth 820**.............. -- 257,374,971 -- 47,872,642
Lifestyle Balanced 640**............ -- 216,576,563 -- 36,081,916
Lifestyle Moderate 460**............ -- 59,019,893 -- 7,879,572
Lifestyle Conservative 280**........ -- 22,418,452 -- 3,255,008
</TABLE>
* For the period October 1, 1997 (commencement of operations) to December 31,
1997.
** For the period January 7, 1997 (commencement of operations) to December 31,
1997.
Purchases and sales for Money Market for the year ended December 31, 1997 were
$4,880,797,613 and $4,813,287,167, respectively.
170
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MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
PURCHASES AND SALES OF SECURITIES - CONTINUED
At December 31, 1997, tax basis net unrealized appreciation (depreciation) was
equal to the aggregate gross unrealized appreciation for all securities in which
there was an excess of market value over tax cost and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
market value as follows:
<TABLE>
<CAPTION>
TAX BASIS NET
UNREALIZED TAX BASIS TAX BASIS
TAX BASIS APPRECIATION UNREALIZED UNREALIZED
PORTFOLIO COST (DEPRECIATION) APPRECIATION DEPRECIATION
--------- ------------------- ------------------- ------------------- --------------------
<S> <C> <C> <C> <C>
Pacific Rim Emerging Markets........ $33,383,480 ($9,069,834) $1,183,498 $10,253,332
Science & Technology................ 83,537,990 (1,920,249) 3,967,267 5,887,516
International Small Cap............. 126,462,919 8,534,528 15,138,686 6,604,158
Emerging Growth..................... 300,986,226 43,005,707 53,590,157 10,584,450
Pilgrim Baxter Growth............... 89,635,688 6,713,161 10,208,280 3,495,119
Small/Mid Cap ...................... 280,266,098 32,753,291 37,259,251 4,505,960
International Stock................. 161,606,048 (1,386,831) 9,773,713 11,160,544
Worldwide Growth.................... 28,884,047 725,778 1,332,724 606,946
Global Equity....................... 782,022,128 136,928,506 169,929,345 33,000,839
Small Company Value................. 70,784,833 (1,259,823) 2,876,539 4,136,362
Equity.............................. 1,630,273,388 65,812,322 134,323,289 68,510,967
Growth.............................. 173,088,662 13,654,143 16,173,488 2,519,345
Quantitative Equity................. 161,513,612 18,922,413 24,156,609 5,234,196
Equity Index........................ 30,402,696 315,177 1,066,635 751,458
Blue Chip Growth.................... 612,382,133 153,247,140 159,795,129 6,547,989
Real Estate Securities.............. 170,736,929 13,698,732 14,352,799 654,067
Value............................... 154,129,921 4,884,252 9,046,237 4,161,985
International Growth and Income..... 231,976,641 (4,401,576) 14,452,390 18,853,966
Growth and Income................... 1,199,957,742 467,129,902 482,483,178 15,353,276
Equity-Income....................... 812,757,137 168,355,434 175,693,764 7,338,330
Balanced............................ 172,912,191 10,824,779 13,196,749 2,371,970
Aggressive Asset Allocation......... 223,567,651 41,616,665 49,272,219 7,655,554
Moderate Asset Allocation........... 583,282,558 79,849,442 94,061,869 14,212,427
Conservative Asset Allocation....... 196,302,399 14,580,242 17,170,147 2,589,905
High Yield.......................... 104,007,991 974,056 2,304,481 1,330,425
Strategic Bond...................... 467,644,287 7,995,471 11,911,148 3,915,677
Global Government Bond.............. 209,064,456 (1,084,767) 3,636,611 4,721,378
Capital Growth Bond................. 54,473,178 1,690,901 1,734,452 43,551
Investment Quality Bond............. 230,285,316 3,710,810 4,925,602 1,214,792
U.S. Government Securities.......... 312,020,963 3,557,968 3,727,163 169,195
Lifestyle Aggressive 1000........... 48,920,775 181,105 1,055,395 874,290
Lifestyle Growth 820................ 215,049,293 2,107,654 5,683,430 3,575,776
Lifestyle Balanced 640.............. 183,242,041 3,409,438 5,312,971 1,903,533
Lifestyle Moderate 460.............. 51,512,291 1,233,338 1,561,982 328,644
Lifestyle Conservative 280.......... 19,298,855 451,164 451,164 --
</TABLE>
171
<PAGE> 210
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
6. INVESTMENT ADVISORY AGREEMENTS. Effective March 20, 1987, the Trust entered
into an Investment Advisory Agreement with MSS (the "Adviser"), a wholly-owned
subsidiary of MNA and the principal underwriter of the variable annuity
contracts issued by MNA and MNY. The Adviser is responsible for managing the
corporate and business affairs of the Trust and for selecting and compensating
subadvisers to handle the investment and reinvestment of the assets of each
Portfolio of the Trust, subject to the supervision of the Trust's Board of
Trustees. As compensation for its services, the Adviser receives an advisory fee
from the Trust based on the average daily net assets of each Portfolio, except
for the Lifestyle Trusts for which the Adviser makes no charge. Advisory fees
charged to each Portfolio were as follows:
PORTFOLIO FEE
- ---------------- -------------
Pacific Rim Emerging Markets...................... .850%
Science & Technology.............................. 1.100%
International Small Cap........................... 1.100%
Emerging Growth................................... 1.050%
Pilgrim Baxter Growth............................. 1.050%
Small/Mid Cap..................................... 1.000%
International Stock............................... 1.050%
Worldwide Growth.................................. 1.000%
Global Equity..................................... .900%
Small Company Value(1)............................ 1.050%
Equity............................................ .750%
Growth............................................ .850%
Quantitative Equity............................... .700%*
Equity Index...................................... .250%
Blue Chip Growth.................................. .925%
Real Estate Securities............................ .700%*
Value............................................. .800%
International Growth and Income................... .950%
Growth and Income................................. .750%
Equity-Income..................................... .800%
Balanced.......................................... .800%
Aggressive Asset Allocation....................... .750%
Moderate Asset Allocation......................... .750%
Conservative Asset Allocation..................... .750%
High Yield........................................ .775%
Strategic Bond.................................... .775%
Global Government Bond............................ .800%
Capital Growth Bond............................... .650%*
Investment Quality Bond........................... .650%
U.S. Government Securities........................ .650%
Money Market...................................... .500%
(1) For the period October 1, 1997 (commencement of operations) to December 31,
1997.
* Because of the special one year expense limitation described below, total fees
including advisory fees did not exceed 0.50%.
For the year ended December 31, 1997, the Adviser paid aggregate subadvisory
fees of $26,369,969 and retained net investment advisory fees after payment of
subadvisory fees of $44,607,679, allocated among the portfolios as follows:
<TABLE>
<CAPTION>
% OF AVERAGE % OF AVERAGE
FEE ANNUAL NET ASSETS FEE ANNUAL NET
PAID TO PAID TO RETAINED ASSETS RETAINED
PORTFOLIO SUBADVISER SUBADVISER BY ADVISER BY ADVISER
- ------------ ------------------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Pacific Rim Emerging Markets........ $107,828 .400% $121,307 .450%
Science & Technology................ 201,450 .600% 167,874 .500%
International Small Cap............. 760,136 .620% 587,572 .480%
Emerging Growth..................... 1,221,387 .550% 1,110,352 .500%
Pilgrim Baxter Growth............... 286,942 .600% 215,207 .450%
Small/Mid Cap....................... 1,078,894 .500% 1,066,433 .500%
International Stock................. 487,128 .590% 373,528 .460%
</TABLE>
172
<PAGE> 211
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
INVESTMENT ADVISORY AGREEMENTS, CONTINUED
<TABLE>
<CAPTION>
FEE % OF NET ASSETS FEE % OF NET ASSETS
PAID TO PAID TO RETAINED RETAINED
PORTFOLIO SUBADVISER SUBADVISER BY ADVISER BY ADVISER
- ------------ ------------------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Worldwide Growth.................... $74,971 .600% $49,981 .400%
Global Equity....................... 3,045,314 .380% 4,210,940 .520%
Small Company Value(1).............. 76,634 .600% 58,054 .450%
Equity.............................. 3,354,190 .240% 7,349,021 .510%
Growth.............................. 495,015 .450% 440,014 .400%
Quantitative Equity................. 318,784 .240% 595,212 .460%
Equity Index........................ 16,885 .100% 25,327 .150%
Blue Chip Growth.................... 2,298,963 .412% 2,857,045 .513%
Real Estate Securities.............. 292,169 .250% 539,022 .450%
Value............................... 233,286 .360% 290,160 .440%
International Growth and Income..... 951,446 .460% 1,014,453 .490%
Growth and Income................... 2,507,394 .190% 7,530,243 .560%
Equity-Income....................... 1,785,490 .230% 4,356,469 .570%
Balanced............................ 537,310 .340% 723,760 .460%
Aggressive Asset Allocation......... 831,665 .350% 934,997 .400%
Moderate Asset Allocation........... 1,722,433 .280% 2,861,688 .470%
Conservative Asset Allocation....... 631,791 .310% 889,256 .440%
High Yield.......................... 138,181 .341% 176,192 .434%
Strategic Bond...................... 847,735 .293% 1,392,743 .482%
Global Government Bond.............. 801,544 .350% 1,035,907 .450%
Capital Growth Bond................. 109,281 .220% 206,420 .430%
Investment Quality Bond............. 362,694 .230% 685,088 .420%
U.S. Government Securities.......... 473,424 .220% 928,144 .430%
Money Market........................ 319,605 .075% 1,815,270 .425%
</TABLE>
(1) For the period October 1, 1997 (commencement of operations) to December 31,
1997.
Of the total retained by the Adviser, $2,631,602 was paid to Manulife America
and $104 was paid to Manulife USA.
EXPENSE REIMBURSEMENT. Pursuant to the Advisory Agreement, the Adviser
reimburses the Trust for expenses (excluding advisory fees, taxes, portfolio
brokerage commissions and interest) incurred in excess, on an annualized basis,
of 0.15% of the average daily net assets of Equity Index, 0.50% of the average
daily net assets of Science & Technology, Emerging Growth, Pilgrim Baxter
Growth, Small/Mid Cap, Growth, Equity, Quantitative Equity, Blue Chip Growth,
Real Estate Securities, Value, Growth and Income, Equity-Income, Balanced,
Aggressive Asset Allocation, Moderate Asset Allocation, Conservative Asset
Allocation, High Yield, Strategic Bond, Capital Growth Bond, Investment Quality
Bond, U.S. Government Securities, Money Market, Lifestyle Aggressive 1000,
Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460 and
Lifestyle Conservative 280 and 0.75% of the average daily net assets of Pacific
Rim Emerging Markets, International Small Cap, International Stock, Worldwide
Growth, Global Equity, International Growth and Income and Global Government
Bond. For the limited period of one year ended December 31, 1997, the expense
limitation applicable to Quantitative Equity, Real Estate Securities and Capital
Growth Bond included all expenses of such portfolios, so that their total
expenses for the year, including advisory fees, did not exceed 0.50%. In
addition, in the case of the Lifestyle Trusts, the Adviser has agreed to pay the
expenses of the Lifestyle Trusts (other than the expenses of the underlying
Portfolios) for a period of one year commencing January 1, 1997. After this one
year period, this expense reimbursement may be terminated at any time. For the
year ended December 31, 1997, the Adviser reimbursed Equity Index, Quantitative
Equity, Real Estate Securities, Capital Growth Bond, Lifestyle Aggressive 1000,
Lifestyle Growth 820, Lifestyle Balanced 640, Lifestyle Moderate 460 and
Lifestyle Conservative 280 the amounts of $28,392, $347,760, $316,025, $110,604,
$5,627, $24,484, $19,564, $5,579 and $2,031 respectively, for expenses incurred
in excess of the applicable limitations.
7. TRUSTEES' FEES. The Trust pays each Trustee who is not an employee or
director of the Adviser or its affiliates a fee of $7,500 plus travel expenses
for each Board of Trustees meeting attended. The Trust also pays each Trustee
who is not an employee of the Adviser or its affiliates an annual retainer of
$30,000.
173
<PAGE> 212
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
8. COMMITMENTS. At December 31, 1997, International Small Cap, International
Stock, Global Equity, International Growth and Income, Balanced, Aggressive
Asset Allocation, Moderate Asset Allocation, Conservative Asset Allocation, High
Yield, Strategic Bond and Global Government Bond had entered into forward
foreign currency contracts which contractually obligate the Portfolio to deliver
currencies at future dates. Open sale and purchase contracts at December 31,
1997 were as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED
CONTRACTS IN EXCHANGE SETTLEMENT APPRECIATION
TO DELIVER FOR DATE VALUE (DEPRECIATION)
------------ -------------- -------------- -------------- -----------------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL SMALL CAP:
PURCHASES $233,378 DEM 411,724 1/02/98 $228,869 ($4,509)
197,683 DEM 351,678 1/05/98 195,491 (2,192)
8,268 NLG 16,561 1/05/98 8,167 (101)
-------- -------- ------
$439,330 $432,527 ($6,802)
======== ======== ======
INTERNATIONAL STOCK:
SALES
Japanese Yen.................. 59,075 $455 1/05/98 $452 $3
New Zealand Dollar............ 4,095 2,382 1/05/98 2,378 4
------- ------- ---
$2,837 $2,830 $7
====== ====== ==
GLOBAL EQUITY:
SALES
Great British Pound........... 32,400,000 $52,882,650 12/16/98 $52,402,510 $480,140
Netherlands Guilder........... 63,000,000 30,616,708 12/16/98 31,175,386 (558,678)
----------- ----------- -------
. $83,499,358 $83,577,896 ($78,538)
=========== =========== -------
PURCHASES $202,536 ITL 356,767,585 1/05/98 $201,677 ($859)
221,232 NZD 379,342 1/05/98 220,265 (967)
-------- -------- ------
$423,768 $421,942 ($1,826)
======== ======== ------
($80,364)
=======
INTERNATIONAL GROWTH AND INCOME:
SALES
Australian Dollar............. 28,244,850 $19,343,090 2/23/98 $18,429,958 $913,132
Canadian Dollar............... 3,236,279 2,298,493 2/23/98 2,268,514 29,979
German Deutsche Mark.......... 31,000,427 17,472,000 2/23/98 17,285,446 186,554
Great British Pound........... 7,561,728 12,676,595 2/23/98 12,388,477 288,118
Hong Kong Dollar.............. 20,233,454 2,583,269 2/23/98 2,601,635 (18,366)
Japanese Yen.................. 1,819,405,136 14,548,370 2/23/98 14,042,177 506,193
New Zealand Dollar............ 10,542,776 6,587,517 2/23/98 6,095,961 491,556
Singapore Dollar.............. 7,547,893 4,760,576 2/23/98 4,447,621 312,955
----------- ----------- ----------
$80,269,910 $77,559,789 $2,710,121
=========== =========== ----------
PURCHASES $7,697,743 AUD 11,717,930 2/23/98 $7,646,030 ($51,713)
33,413,819 DEM 57,826,253 2/23/98 32,243,186 (1,170,633)
2,431,496 P 1,458,949 2/23/98 2,390,215 (41,281)
1,640,000 HKD 12,891,860 2/23/98 1,657,646 17,646
9,916,000 Y 1,245,283,698 2/23/98 9,611,105 (304,895)
----------- ----------- ----------
$55,099,058 $53,548,182 ($1,550,876)
=========== =========== ----------
$1,159,245
==========
BALANCED:
SALES
Canadian Dollar............... 243 $169 1/02/98 $170 ($1)
==== ==== ==
AGGRESSIVE ASSET ALLOCATION:
SALES
Norwegian Krone............... 121,030 $16,539 1/02/98 $16,387 $152
======= ======= ----
PURCHASES $16,241 NOK 121,030 1/07/98 $16,387 $146
16,226 NOK 121,030 1/09/98 16,387 161
------- ======= ----
$32,467 $32,774 $307
======= ======= ----
$459
====
</TABLE>
174
<PAGE> 213
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
COMMITMENTS, CONTINUED
<TABLE>
<CAPTION>
NET
UNREALIZED
CONTRACTS IN EXCHANGE SETTLEMENT APPRECIATION
TO DELIVER FOR DATE VALUE (DEPRECIATION)
------------ ------------------ -------------- -------------- -----------------
<S> <C> <C> <C> <C> <C>
MODERATE ASSET ALLOCATION:
SALES
Norwegian Krone............... 218,686 $29,883 1/02/98 $29,609 $274
======= ======= ----
PURCHASES
$29,346 NOK 218,686 1/07/98 $29,609 $263
29,318 NOK 218,686 1/09/98 29,609 291
------- ======= ----
$58,664 $59,218 $554
======= ======= ----
$828
=====
CONSERVATIVE ASSET ALLOCATION:
SALES
Norwegian Krone............... 38,116 $5,208 1/02/98 $5,161 $47
====== ====== ---
PURCHASES
$5,115 NOK 38,116 1/07/98 $5,161 $46
5,110 NOK 38,116 1/09/98 5,161 51
------- ======= -----
$10,225 $10,322 $ 97
======= ======= -----
$144
=====
HIGH YIELD:
SALES
German Deutsche Mark.......... 300,000 $172,811 1/20/98 $166,967 $5,844
German Deutsche Mark.......... 630,000 362,590 2/27/98 351,355 11,235
German Deutsche Mark.......... 1,850,000 1,050,003 3/18/98 1,033,039 16,964
German Deutsche Mark.......... 1,215,000 688,700 3/23/98 678,659 10,041
---------- ---------- -------
$2,274,104 $2,230,020 $44,084
========== ========== -------
PURCHASES
$28,468 DEM 50,000 2/27/98 $27,885 ($583)
======= ======= -------
($583)
-------
$43,501
=======
STRATEGIC BOND:
SALES
Australian Dollar............. 273,816 $180,622 2/11/98 $178,622 $2,000
Canadian Dollar............... 6,219,459 4,379,901 2/11/98 4,358,266 21,635
German Deutsche Mark.......... 26,586,579 15,155,093 2/11/98 14,814,758 340,335
Italian Lira.................. 5,784,961,140 3,349,174 2/11/98 3,269,162 80,012
----------- ----------- --------
$23,064,790 $22,620,808 $443,982
=========== =========== --------
PURCHASES
$4,400,798 DEM 7,765,422 2/11/98 $4,327,103 ($73,695)
========== ========== --------
($73,695)
--------
$370,287
========
GLOBAL GOVERNMENT BOND:
SALES
German Deutsche Mark.......... 1,000,000 $563,412 1/02/98 $555,880 $7,532
South African Rand............ 1,251,000 257,222 1/02/98 257,064 158
South African Rand............ 55,000,000 11,258,956 1/15/98 11,254,348 4,608
German Deutsche Mark.......... 31,732,799 18,100,000 1/26/98 17,667,583 432,417
Danish Krone.................. 81,430,380 12,200,000 1/26/98 11,900,910 299,090
Great British Pound........... 11,085,520 18,500,000 1/26/98 18,184,192 315,808
Italian Lira.................. 22,057,100,000 13,000,000 1/26/98 12,465,629 534,371
Swedish Krona................. 99,216,650 13,000,000 1/26/98 12,505,445 494,555
</TABLE>
175
<PAGE> 214
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- --------------------------------------------------------------------------------
COMMITMENTS, CONTINUED
<TABLE>
<CAPTION>
NET
UNREALIZED
CONTRACTS IN EXCHANGE SETTLEMENT APPRECIATION
TO DELIVER FOR DATE VALUE (DEPRECIATION)
------------ ------------------ -------------- -------------- -----------------
<S> <C> <C> <C> <C> <C>
GLOBAL GOVERNMENT BOND - CONTINUED
New Zealand Dollar............ 21,049,406 $13,000,000 1/27/98 $12,192,496 $807,504
New Zealand Dollar............ 10,911,249 6,964,650 4/09/98 6,286,922 677,728
Australian Dollar............. 11,415,118 8,000,000 5/11/98 7,461,968 538,032
Italian Lira.................. 18,599,275,000 10,700,000 5/11/98 10,516,558 183,442
Swedish Krone................. 46,674,000 6,000,000 5/11/98 5,897,431 102,569
German Deutsche Mark.......... 30,001,813 17,000,000 6/04/98 16,824,506 175,494
Italian Lira.................. 22,812,400,000 13,000,000 10/02/98 12,954,306 45,694
------------ ------------ ----------
$161,544,240 $156,925,238 $4,619,002
============ ============ ----------
PURCHASES
$18,571,258 DEM 31,732,799 1/26/98 $17,667,583 ($903,675)
12,158,527 DKK 81,430,380 1/26/98 11,900,910 (257,617)
12,635,331 ITL 22,057,100,000 1/26/98 12,465,629 (169,702)
8,002,141 SEK 62,216,650 1/26/98 7,841,899 (160,242)
6,964,650 NZD 11,000,000 4/09/98 6,338,059 (626,591)
10,561,769 ITL 18,599,275,000 5/11/98 10,516,558 (45,211)
----------- ----------- ----------
$68,893,676 $66,730,638 ($2,163,038)
=========== =========== ----------
$2,455,964
==========
</TABLE>
9. REORGANIZATION. On December 20, 1996, the shareholders of the Manulife Series
Fund, Inc. (MSF), a registered management investment company with nine
portfolios voted to approve an Agreement and Plan of Reorganization (the
"Reorganization") effective December 31, 1996 between MSF on behalf of its
portfolios and comparable portfolios of the Trust. The agreement provided for
the tax free transfer of all assets and liabilities of each MSF portfolio to the
corresponding Trust portfolio in exchange solely for shares of beneficial
interest, par value of $0.01 per share of such Trust portfolio and the
distribution of such Trust portfolio shares to the shareholders of such MSF
portfolio in liquidation of such MSF portfolio. Costs of the merger were borne
by Manulife and NASL Financial. The MSF portfolios and the corresponding Trust
Portfolios were as follows:
<TABLE>
<CAPTION>
MSF PORTFOLIOS CORRESPONDING TRUST PORTFOLIOS
----------------- -----------------------------------
<S> <C>
Money-Market Fund Money Market Trust
International Fund International Stock Trust (a newly organized Trust shell portfolio)
Emerging Growth Equity Fund Emerging Growth Trust (a newly organized Trust shell portfolio)
Balanced Assets Fund Balanced Trust (a newly organized Trust shell portfolio)
Common Stock Fund Quantitative Equity Trust (a newly organized Trust shell portfolio)
Pacific Rim Emerging Markets Fund Pacific Rim Emerging Markets Trust (a newly organized Trust shell portfolio)
Real Estate Securities Fund Real Estate Securities Trust (a newly organized Trust shell portfolio)
Capital Growth Bond Fund Capital Growth Bond Trust (a newly organized Trust shell portfolio)
Equity Index Fund Equity Index Trust (a newly organized Trust shell portfolio)
</TABLE>
The total value of all shares of each Trust portfolio issued in the
Reorganization equaled the total value of the net assets of the corresponding
MSF portfolio being acquired by such Trust portfolio. The MSF Money-Market Fund
was merged into Money Market with the resulting activity as follows:
<TABLE>
<CAPTION>
PORTFOLIO SHARES TOTAL NET ASSETS NET ASSET VALUE
- -------------- ---------------- --------------------- ---------------------
<S> <C> <C> <C>
MSF Money-Market Fund
at December 31, 1996........................... 4,364,278 $45,731,589 $10.48
NASL Series Trust
Money Market Trust
at December 31, 1996........................... 31,783,421 $317,834,208 $10.00
Money Market Trust
after reorganization
on December 31, 1996........................... 36,356,580 $363,565,797 $10.00
</TABLE>
176
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 1
<NAME> EQUITY TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1,628,138,660
<INVESTMENTS-AT-VALUE> 1,696,085,710
<RECEIVABLES> 32,406,754
<ASSETS-OTHER> 3,924
<OTHER-ITEMS-ASSETS> 566
<TOTAL-ASSETS> 1,728,496,954
<PAYABLE-FOR-SECURITIES> 15,797,250
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 191,317,604
<TOTAL-LIABILITIES> 207,114,954
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,162,105,830
<SHARES-COMMON-STOCK> 70,757,532
<SHARES-COMMON-PRIOR> 59,492,706
<ACCUMULATED-NII-CURRENT> 4,882,008
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 286,447,188
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 67,947,074
<NET-ASSETS> 1,521,382,100
<DIVIDEND-INCOME> 13,270,385
<INTEREST-INCOME> 3,180,530
<OTHER-INCOME> 0
<EXPENSES-NET> 11,483,389
<NET-INVESTMENT-INCOME> 4,967,526
<REALIZED-GAINS-CURRENT> 288,355,103
<APPREC-INCREASE-CURRENT> (49,085,204)
<NET-CHANGE-FROM-OPS> 244,237,425
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 8,208,495
<DISTRIBUTIONS-OF-GAINS> 250,024,832
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,030,182
<NUMBER-OF-SHARES-REDEEMED> 11,346,571
<SHARES-REINVESTED> 14,581,215
<NET-CHANGE-IN-ASSETS> 175,920,710
<ACCUMULATED-NII-PRIOR> 8,208,495
<ACCUMULATED-GAINS-PRIOR> 248,037,167
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 10,703,211
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,483,389
<AVERAGE-NET-ASSETS> 1,427,094,804
<PER-SHARE-NAV-BEGIN> 22.62
<PER-SHARE-NII> .08
<PER-SHARE-GAIN-APPREC> 3.31
<PER-SHARE-DIVIDEND> 0.14
<PER-SHARE-DISTRIBUTIONS> 4.37
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 21.50
<EXPENSE-RATIO> 0.80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 2
<NAME> INVESTMENT QUALITY BOND TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 230,285,316
<INVESTMENTS-AT-VALUE> 233,996,126
<RECEIVABLES> 2,490,690
<ASSETS-OTHER> 428
<OTHER-ITEMS-ASSETS> 839
<TOTAL-ASSETS> 237,488,083
<PAYABLE-FOR-SECURITIES> 286,633
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 48,656,507
<TOTAL-LIABILITIES> 48,943,140
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 176,327,759
<SHARES-COMMON-STOCK> 15,549,187
<SHARES-COMMON-PRIOR> 12,866,102
<ACCUMULATED-NII-CURRENT> 11,620,376
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3,114,002)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,710,810
<NET-ASSETS> 188,544,943
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 12,713,368
<OTHER-INCOME> 0
<EXPENSES-NET> 1,195,358
<NET-INVESTMENT-INCOME> 11,518,010
<REALIZED-GAINS-CURRENT> 560,958
<APPREC-INCREASE-CURRENT> 3,072,046
<NET-CHANGE-FROM-OPS> 15,151,014
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 10,368,425
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,757,805
<NUMBER-OF-SHARES-REDEEMED> 2,019,021
<SHARES-REINVESTED> 944,301
<NET-CHANGE-IN-ASSETS> 35,584,111
<ACCUMULATED-NII-PRIOR> 10,356,725
<ACCUMULATED-GAINS-PRIOR> (3,560,894)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,047,782
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,195,358
<AVERAGE-NET-ASSETS> 161,197,190
<PER-SHARE-NAV-BEGIN> 11.89
<PER-SHARE-NII> 0.77
<PER-SHARE-GAIN-APPREC> 0.30
<PER-SHARE-DIVIDEND> 0.83
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.13
<EXPENSE-RATIO> 0.74
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 3
<NAME> MONEY MARKET TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 434,588,104
<INVESTMENTS-AT-VALUE> 434,588,104
<RECEIVABLES> 5,159,291
<ASSETS-OTHER> 1,072
<OTHER-ITEMS-ASSETS> 380
<TOTAL-ASSETS> 439,748,847
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 35,309
<TOTAL-LIABILITIES> 35,309
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 439,713,538
<SHARES-COMMON-STOCK> 43,971,354
<SHARES-COMMON-PRIOR> 36,356,580
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 439,713,539
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 23,822,868
<OTHER-INCOME> 0
<EXPENSES-NET> 2,325,339
<NET-INVESTMENT-INCOME> 21,497,529
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 21,497,529
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 21,497,529
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 72,701,409
<NUMBER-OF-SHARES-REDEEMED> 67,236,388
<SHARES-REINVESTED> 2,149,753
<NET-CHANGE-IN-ASSETS> 76,147,741
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,134,874
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,325,339
<AVERAGE-NET-ASSETS> 426,974,947
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.50
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.50
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.00
<EXPENSE-RATIO> 0.54
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 4
<NAME> GLOBAL EQUITY TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 781,999,958
<INVESTMENTS-AT-VALUE> 918,950,634
<RECEIVABLES> 3,235,758
<ASSETS-OTHER> 2,224
<OTHER-ITEMS-ASSETS> 88,139,300
<TOTAL-ASSETS> 1,010,327,916
<PAYABLE-FOR-SECURITIES> 87,035,658
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 54,879,511
<TOTAL-LIABILITIES> 141,915,169
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 667,723,860
<SHARES-COMMON-STOCK> 44,813,235
<SHARES-COMMON-PRIOR> 40,739,977
<ACCUMULATED-NII-CURRENT> 15,666,642
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 48,191,141
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 136,831,104
<NET-ASSETS> 868,412,747
<DIVIDEND-INCOME> 15,678,817
<INTEREST-INCOME> 682,899
<OTHER-INCOME> 0
<EXPENSES-NET> 8,150,357
<NET-INVESTMENT-INCOME> 8,211,359
<REALIZED-GAINS-CURRENT> 56,155,881
<APPREC-INCREASE-CURRENT> 86,184,268
<NET-CHANGE-FROM-OPS> 150,551,508
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 10,702,845
<DISTRIBUTIONS-OF-GAINS> 62,223,834
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,372,811
<NUMBER-OF-SHARES-REDEEMED> 5,809,552
<SHARES-REINVESTED> 4,509,999
<NET-CHANGE-IN-ASSETS> 141,570,346
<ACCUMULATED-NII-PRIOR> 10,924,122
<ACCUMULATED-GAINS-PRIOR> 61,470,931
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7,256,254
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,150,357
<AVERAGE-NET-ASSETS> 806,250,438
<PER-SHARE-NAV-BEGIN> 17.84
<PER-SHARE-NII> 0.19
<PER-SHARE-GAIN-APPREC> 3.16
<PER-SHARE-DIVIDEND> 0.27
<PER-SHARE-DISTRIBUTIONS> 1.54
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.38
<EXPENSE-RATIO> 1.01
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 5
<NAME> GLOBAL GOVERNMENT BOND TRUST
<MULTIPLIER> 1
<CURRENCY> USDA
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 209,017,428
<INVESTMENTS-AT-VALUE> 207,979,689
<RECEIVABLES> 4,320,672
<ASSETS-OTHER> 547
<OTHER-ITEMS-ASSETS> 229,702,895
<TOTAL-ASSETS> 442,003,803
<PAYABLE-FOR-SECURITIES> 225,818,914
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 67,766
<TOTAL-LIABILITIES> 225,886,680
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 196,389,248
<SHARES-COMMON-STOCK> 15,362,187
<SHARES-COMMON-PRIOR> 16,685,598
<ACCUMULATED-NII-CURRENT> 12,595,749
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,850,749
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,281,377
<NET-ASSETS> 216,117,123
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 15,631,031
<OTHER-INCOME> 0
<EXPENSES-NET> 2,146,505
<NET-INVESTMENT-INCOME> 13,484,526
<REALIZED-GAINS-CURRENT> 4,964,399
<APPREC-INCREASE-CURRENT> (12,484,770)
<NET-CHANGE-FROM-OPS> 5,964,155
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 19,668,247
<DISTRIBUTIONS-OF-GAINS> 512,991
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 445,962
<NUMBER-OF-SHARES-REDEEMED> 3,299,413
<SHARES-REINVESTED> 1,530,040
<NET-CHANGE-IN-ASSETS> (33,676,187)
<ACCUMULATED-NII-PRIOR> 19,668,247
<ACCUMULATED-GAINS-PRIOR> 510,560
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,837,451
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,146,505
<AVERAGE-NET-ASSETS> 229,681,382
<PER-SHARE-NAV-BEGIN> 14.97
<PER-SHARE-NII> 0.93
<PER-SHARE-GAIN-APPREC> (0.57)
<PER-SHARE-DIVIDEND> 1.23
<PER-SHARE-DISTRIBUTIONS> 0.03
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.07
<EXPENSE-RATIO> 0.93
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 6
<NAME> U.S. GOVERNMENT SECURITIES TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 312,020,963
<INVESTMENTS-AT-VALUE> 315,578,931
<RECEIVABLES> 3,717,350
<ASSETS-OTHER> 574
<OTHER-ITEMS-ASSETS> 213
<TOTAL-ASSETS> 319,297,068
<PAYABLE-FOR-SECURITIES> 38,354,768
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 29,664,965
<TOTAL-LIABILITIES> 68,019,733
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 238,087,175
<SHARES-COMMON-STOCK> 18,616,392
<SHARES-COMMON-PRIOR> 15,316,916
<ACCUMULATED-NII-CURRENT> 13,028,158
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3,395,966)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,557,968
<NET-ASSETS> 251,277,335
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 14,161,329
<OTHER-INCOME> 894,225
<EXPENSES-NET> 1,544,257
<NET-INVESTMENT-INCOME> 13,511,297
<REALIZED-GAINS-CURRENT> (1,285,791)
<APPREC-INCREASE-CURRENT> 5,453,837
<NET-CHANGE-FROM-OPS> 17,679,343
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13,118,502
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,194,421
<NUMBER-OF-SHARES-REDEEMED> 3,945,265
<SHARES-REINVESTED> 1,050,320
<NET-CHANGE-IN-ASSETS> 47,224,719
<ACCUMULATED-NII-PRIOR> 13,081,027
<ACCUMULATED-GAINS-PRIOR> (2,555,271)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,401,568
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,544,257
<AVERAGE-NET-ASSETS> 215,625,789
<PER-SHARE-NAV-BEGIN> 13.32
<PER-SHARE-NII> 0.75
<PER-SHARE-GAIN-APPREC> 0.31
<PER-SHARE-DIVIDEND> 0.88
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.50
<EXPENSE-RATIO> 0.72
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 7
<NAME> CONSERVATIVE ASSET ALLOCATION TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 196,142,585
<INVESTMENTS-AT-VALUE> 210,882,641
<RECEIVABLES> 1,575,291
<ASSETS-OTHER> 512
<OTHER-ITEMS-ASSETS> 230,431
<TOTAL-ASSETS> 212,688,875
<PAYABLE-FOR-SECURITIES> 3,247,136
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,093,617
<TOTAL-LIABILITIES> 8,340,753
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 171,181,905
<SHARES-COMMON-STOCK> 17,341,644
<SHARES-COMMON-PRIOR> 17,907,959
<ACCUMULATED-NII-CURRENT> 8,844,386
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 9,582,317
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 14,739,514
<NET-ASSETS> 204,348,122
<DIVIDEND-INCOME> 780,796
<INTEREST-INCOME> 9,935,599
<OTHER-INCOME> 0
<EXPENSES-NET> 1,807,127
<NET-INVESTMENT-INCOME> 8,909,268
<REALIZED-GAINS-CURRENT> 9,547,498
<APPREC-INCREASE-CURRENT> 3,387,637
<NET-CHANGE-FROM-OPS> 21,844,403
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 10,062,867
<DISTRIBUTIONS-OF-GAINS> 8,097,771
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,076,901
<NUMBER-OF-SHARES-REDEEMED> 3,356,484
<SHARES-REINVESTED> 1,713,268
<NET-CHANGE-IN-ASSETS> (4,117,532)
<ACCUMULATED-NII-PRIOR> 10,062,867
<ACCUMULATED-GAINS-PRIOR> 8,074,045
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,521,047
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,807,127
<AVERAGE-NET-ASSETS> 202,806,259
<PER-SHARE-NAV-BEGIN> 11.64
<PER-SHARE-NII> 0.54
<PER-SHARE-GAIN-APPREC> 0.67
<PER-SHARE-DIVIDEND> 0.59
<PER-SHARE-DISTRIBUTIONS> 0.48
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.78
<EXPENSE-RATIO> 0.89
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from
Manufacturers Investment Trust Annual Report dated December 31, 1997 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 8
<NAME> MODERATE ASSET ALLOCATION TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 582,270,877
<INVESTMENTS-AT-VALUE> 663,132,000
<RECEIVABLES> 3,996,116
<ASSETS-OTHER> 1,550
<OTHER-ITEMS-ASSETS> 1,753,835
<TOTAL-ASSETS> 668,883,501
<PAYABLE-FOR-SECURITIES> 5,865,243
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 53,876,618
<TOTAL-LIABILITIES> 59,741,861
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 461,111,287
<SHARES-COMMON-STOCK> 47,035,794
<SHARES-COMMON-PRIOR> 50,021,359
<ACCUMULATED-NII-CURRENT> 20,941,772
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 46,265,268
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 80,823,313
<NET-ASSETS> 609,141,640
<DIVIDEND-INCOME> 4,762,828
<INTEREST-INCOME> 21,036,541
<OTHER-INCOME> 0
<EXPENSES-NET> 5,174,912
<NET-INVESTMENT-INCOME> 20,624,457
<REALIZED-GAINS-CURRENT> 46,738,046
<APPREC-INCREASE-CURRENT> 22,726,208
<NET-CHANGE-FROM-OPS> 90,088,711
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 26,584,959
<DISTRIBUTIONS-OF-GAINS> 34,563,767
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 860,403
<NUMBER-OF-SHARES-REDEEMED> 9,320,339
<SHARES-REINVESTED> 5,474,371
<NET-CHANGE-IN-ASSETS> (15,679,408)
<ACCUMULATED-NII-PRIOR> 26,584,959
<ACCUMULATED-GAINS-PRIOR> 34,355,001
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,584,121
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,174,912
<AVERAGE-NET-ASSETS> 611,216,119
<PER-SHARE-NAV-BEGIN> 12.49
<PER-SHARE-NII> 0.48
<PER-SHARE-GAIN-APPREC> 1.29
<PER-SHARE-DIVIDEND> 0.57
<PER-SHARE-DISTRIBUTIONS> 0.74
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.95
<EXPENSE-RATIO> 0.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 9
<NAME> AGGRESSIVE ASSET ALLOCATION TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 222,894,940
<INVESTMENTS-AT-VALUE> 265,184,316
<RECEIVABLES> 1,176,426
<ASSETS-OTHER> 617
<OTHER-ITEMS-ASSETS> 903,228
<TOTAL-ASSETS> 267,264,587
<PAYABLE-FOR-SECURITIES> 65,241
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23,666,117
<TOTAL-LIABILITIES> 23,731,358
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 172,863,455
<SHARES-COMMON-STOCK> 16,957,017
<SHARES-COMMON-PRIOR> 16,857,857
<ACCUMULATED-NII-CURRENT> 4,765,263
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 23,728,297
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 42,176,214
<NET-ASSETS> 243,533,229
<DIVIDEND-INCOME> 2,649,322
<INTEREST-INCOME> 4,157,072
<OTHER-INCOME> 0
<EXPENSES-NET> 2,128,128
<NET-INVESTMENT-INCOME> 4,678,266
<REALIZED-GAINS-CURRENT> 23,850,147
<APPREC-INCREASE-CURRENT> 12,362,102
<NET-CHANGE-FROM-OPS> 40,890,515
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6,081,059
<DISTRIBUTIONS-OF-GAINS> 16,445,138
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 679,646
<NUMBER-OF-SHARES-REDEEMED> 2,451,432
<SHARES-REINVESTED> 1,870,946
<NET-CHANGE-IN-ASSETS> 16,833,991
<ACCUMULATED-NII-PRIOR> 6,081,059
<ACCUMULATED-GAINS-PRIOR> 16,384,235
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,766,662
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,128,128
<AVERAGE-NET-ASSETS> 235,554,949
<PER-SHARE-NAV-BEGIN> 13.45
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> 2.01
<PER-SHARE-DIVIDEND> 0.38
<PER-SHARE-DISTRIBUTIONS> 1.01
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.36
<EXPENSE-RATIO> 0.90
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS FINANCIAL INFORMATION EXTRACTED FROM MANUFACTURERS
INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 10
<NAME> GROWTH AND INCOME TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1,199,967,005
<INVESTMENTS-AT-VALUE> 1,667,087,644
<RECEIVABLES> 6,731,939
<ASSETS-OTHER> 3,873
<OTHER-ITEMS-ASSETS> 190,701
<TOTAL-ASSETS> 1,674,014,157
<PAYABLE-FOR-SECURITIES> 2,088,219
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 66,538,660
<TOTAL-LIABILITIES> 68,626,879
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,023,390,442
<SHARES-COMMON-STOCK> 67,200,511
<SHARES-COMMON-PRIOR> 53,329,350
<ACCUMULATED-NII-CURRENT> 15,315,808
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 99,563,470
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 467,118,358
<NET-ASSETS> 1,605,387,278
<DIVIDEND-INCOME> 24,298,831
<INTEREST-INCOME> 1,639,350
<OTHER-INCOME> 0
<EXPENSES-NET> 10,615,195
<NET-INVESTMENT-INCOME> 15,322,986
<REALIZED-GAINS-CURRENT> 99,564,755
<APPREC-INCREASE-CURRENT> 247,909,495
<NET-CHANGE-FROM-OPS> 362,797,236
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13,165,084
<DISTRIBUTIONS-OF-GAINS> 66,257,481
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,971,288
<NUMBER-OF-SHARES-REDEEMED> 3,367,863
<SHARES-REINVESTED> 4,267,736
<NET-CHANGE-IN-ASSETS> 571,649,284
<ACCUMULATED-NII-PRIOR> 13,165,084
<ACCUMULATED-GAINS-PRIOR> 66,257,481
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 10,037,637
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10,615,195
<AVERAGE-NET-ASSETS> 1,338,262,760
<PER-SHARE-NAV-BEGIN> 19.38
<PER-SHARE-NII> 0.22
<PER-SHARE-GAIN-APPREC> 5.73
<PER-SHARE-DIVIDEND> 0.24
<PER-SHARE-DISTRIBUTIONS> 1.20
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 23.89
<EXPENSE-RATIO> 0.79
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM MANUFACTURERS
INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 11
<NAME> BLUE CHIP GROWTH TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 612,170,817
<INVESTMENTS-AT-VALUE> 765,629,273
<RECEIVABLES> 1,643,962
<ASSETS-OTHER> 1,662
<OTHER-ITEMS-ASSETS> 1,012
<TOTAL-ASSETS> 767,275,909
<PAYABLE-FOR-SECURITIES> 2,358,937
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 56,109,514
<TOTAL-LIABILITIES> 58,468,451
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 539,723,518
<SHARES-COMMON-STOCK> 47,268,444
<SHARES-COMMON-PRIOR> 29,538,092
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<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11,503,937
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 153,458,456
<NET-ASSETS> 708,807,458
<DIVIDEND-INCOME> 6,647,074
<INTEREST-INCOME> 2,916,575
<OTHER-INCOME> 0
<EXPENSES-NET> 5,440,553
<NET-INVESTMENT-INCOME> 4,123,096
<REALIZED-GAINS-CURRENT> 11,907,242
<APPREC-INCREASE-CURRENT> 112,919,340
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<DISTRIBUTIONS-OF-INCOME> 898,962
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<NUMBER-OF-SHARES-REDEEMED> 5,697,993
<SHARES-REINVESTED> 6,465,537
<NET-CHANGE-IN-ASSETS> 286,236,630
<ACCUMULATED-NII-PRIOR> 898,962
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<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,156,008
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,440,553
<AVERAGE-NET-ASSETS> 557,406,289
<PER-SHARE-NAV-BEGIN> 14.31
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 12
<NAME> EQUITY-INCOME TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 812,487,038
<INVESTMENTS-AT-VALUE> 981,112,571
<RECEIVABLES> 2,629,612
<ASSETS-OTHER> 2,474
<OTHER-ITEMS-ASSETS> 945
<TOTAL-ASSETS> 983,745,602
<PAYABLE-FOR-SECURITIES> 132,176
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 41,908,839
<TOTAL-LIABILITIES> 42,041,015
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 714,058,066
<SHARES-COMMON-STOCK> 54,625,052
<SHARES-COMMON-PRIOR> 38,904,143
<ACCUMULATED-NII-CURRENT> 18,699,879
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<ACCUMULATED-NET-GAINS> 40,321,049
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 168,625,593
<NET-ASSETS> 941,704,587
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<EXPENSES-NET> 6,540,220
<NET-INVESTMENT-INCOME> 18,962,919
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<GROSS-ADVISORY-FEES> 6,141,959
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<GROSS-EXPENSE> 6,540,220
<AVERAGE-NET-ASSETS> 767,744,878
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<PER-SHARE-NAV-END> 17.24
<EXPENSE-RATIO> 0.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 13
<NAME> STRATEGIC BOND TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 467,461,755
<INVESTMENTS-AT-VALUE> 475,639,758
<RECEIVABLES> 6,425,668
<ASSETS-OTHER> 1,255
<OTHER-ITEMS-ASSETS> 27,393,927
<TOTAL-ASSETS> 509,460,608
<PAYABLE-FOR-SECURITIES> 68,042,576
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 75,827,824
<TOTAL-LIABILITIES> 143,870,400
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 330,754,642
<SHARES-COMMON-STOCK> 29,537,067
<SHARES-COMMON-PRIOR> 18,529,230
<ACCUMULATED-NII-CURRENT> 22,584,781
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,714,537
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8,536,248
<NET-ASSETS> 365,590,208
<DIVIDEND-INCOME> 16,999
<INTEREST-INCOME> 23,904,254
<OTHER-INCOME> 396,169
<EXPENSES-NET> 2,523,164
<NET-INVESTMENT-INCOME> 21,794,258
<REALIZED-GAINS-CURRENT> 4,831,574
<APPREC-INCREASE-CURRENT> 3,440,337
<NET-CHANGE-FROM-OPS> 30,066,169
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 14,436,515
<DISTRIBUTIONS-OF-GAINS> 1,809,273
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,161,795
<NUMBER-OF-SHARES-REDEEMED> 2,607,070
<SHARES-REINVESTED> 1,453,112
<NET-CHANGE-IN-ASSETS> 144,312,727
<ACCUMULATED-NII-PRIOR> 14,378,392
<ACCUMULATED-GAINS-PRIOR> 1,671,226
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,240,478
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,523,164
<AVERAGE-NET-ASSETS> 289,093,861
<PER-SHARE-NAV-BEGIN> 11.94
<PER-SHARE-NII> 0.67
<PER-SHARE-GAIN-APPREC> 0.57
<PER-SHARE-DIVIDEND> 0.71
<PER-SHARE-DISTRIBUTIONS> 0.09
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.38
<EXPENSE-RATIO> 0.87
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 14
<NAME> INTERNATIONAL GROWTH AND INCOME TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 231,249,456
<INVESTMENTS-AT-VALUE> 227,575,065
<RECEIVABLES> 4,659,249
<ASSETS-OTHER> 20,083
<OTHER-ITEMS-ASSETS> 135,064,500
<TOTAL-ASSETS> 367,318,897
<PAYABLE-FOR-SECURITIES> 132,852,162
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 30,690,281
<TOTAL-LIABILITIES> 163,542,443
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 195,941,231
<SHARES-COMMON-STOCK> 18,516,347
<SHARES-COMMON-PRIOR> 16,061,451
<ACCUMULATED-NII-CURRENT> 4,240,740
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,185,857
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2,591,374)
<NET-ASSETS> 203,776,454
<DIVIDEND-INCOME> 3,746,368
<INTEREST-INCOME> 2,881,953
<OTHER-INCOME> 0
<EXPENSES-NET> 2,327,246
<NET-INVESTMENT-INCOME> 4,301,075
<REALIZED-GAINS-CURRENT> 6,811,688
<APPREC-INCREASE-CURRENT> (11,212,611)
<NET-CHANGE-FROM-OPS> (99,848)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,640,170
<DISTRIBUTIONS-OF-GAINS> 8,342,784
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,352,348
<NUMBER-OF-SHARES-REDEEMED> 9,013,183
<SHARES-REINVESTED> 1,115,731
<NET-CHANGE-IN-ASSETS> 14,766,377
<ACCUMULATED-NII-PRIOR> 3,194,285
<ACCUMULATED-GAINS-PRIOR> 8,102,503
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,965,899
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,327,246
<AVERAGE-NET-ASSETS> 206,936,794
<PER-SHARE-NAV-BEGIN> 11.77
<PER-SHARE-NII> 0.23
<PER-SHARE-GAIN-APPREC> (0.26)
<PER-SHARE-DIVIDEND> 0.22
<PER-SHARE-DISTRIBUTIONS> 0.51
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.01
<EXPENSE-RATIO> 1.12
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 15
<NAME> SMALL/MID CAP TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 280,266,098
<INVESTMENTS-AT-VALUE> 313,019,389
<RECEIVABLES> 6,601,432
<ASSETS-OTHER> 692
<OTHER-ITEMS-ASSETS> 725
<TOTAL-ASSETS> 319,622,238
<PAYABLE-FOR-SECURITIES> 12,788,500
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 38,457,226
<TOTAL-LIABILITIES> 51,245,726
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 236,803,066
<SHARES-COMMON-STOCK> 17,417,967
<SHARES-COMMON-PRIOR> 13,165,725
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,179,845)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 32,753,291
<NET-ASSETS> 268,376,512
<DIVIDEND-INCOME> 767,350
<INTEREST-INCOME> 781,193
<OTHER-INCOME> 0
<EXPENSES-NET> 2,258,964
<NET-INVESTMENT-INCOME> (710,421)
<REALIZED-GAINS-CURRENT> 5,771,995
<APPREC-INCREASE-CURRENT> 22,179,663
<NET-CHANGE-FROM-OPS> 27,241,237
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,383,392
<NUMBER-OF-SHARES-REDEEMED> 3,131,150
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 92,314,947
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (6,951,840)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,145,327
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,258,964
<AVERAGE-NET-ASSETS> 214,532,655
<PER-SHARE-NAV-BEGIN> 13.37
<PER-SHARE-NII> (0.04)
<PER-SHARE-GAIN-APPREC> 2.08
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.41
<EXPENSE-RATIO> 1.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from
Manufacturers Investment Trust Annual Report dated December 31, 1997 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 16
<NAME> INTERNATIONAL SMALL CAP TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 126,366,939
<INVESTMENTS-AT-VALUE> 134,997,447
<RECEIVABLES> 576,941
<ASSETS-OTHER> 337
<OTHER-ITEMS-ASSETS> 4,316,257
<TOTAL-ASSETS> 139,890,982
<PAYABLE-FOR-SECURITIES> 1,061,647
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10,253,625
<TOTAL-LIABILITIES> 11,315,272
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 124,042,083
<SHARES-COMMON-STOCK> 9,382,231
<SHARES-COMMON-PRIOR> 7,148,328
<ACCUMULATED-NII-CURRENT> 444,269
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (4,503,928)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8,593,286
<NET-ASSETS> 128,575,710
<DIVIDEND-INCOME> 1,049,249
<INTEREST-INCOME> 1,321,030
<OTHER-INCOME> 0
<EXPENSES-NET> 1,602,853
<NET-INVESTMENT-INCOME> 767,426
<REALIZED-GAINS-CURRENT> (3,920,208)
<APPREC-INCREASE-CURRENT> 3,413,441
<NET-CHANGE-FROM-OPS> 260,659
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 56,628
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,033,997
<NUMBER-OF-SHARES-REDEEMED> 3,804,258
<SHARES-REINVESTED> 4,164
<NET-CHANGE-IN-ASSETS> 31,357,817
<ACCUMULATED-NII-PRIOR> (4,890)
<ACCUMULATED-GAINS-PRIOR> (845,359)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,347,708
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,602,853
<AVERAGE-NET-ASSETS> 122,522,757
<PER-SHARE-NAV-BEGIN> 13.60
<PER-SHARE-NII> 0.08
<PER-SHARE-GAIN-APPREC> 0.03
<PER-SHARE-DIVIDEND> 0.01
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.70
<EXPENSE-RATIO> 1.31
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BE REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 17
<NAME> GROWTH TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 172,899,980
<INVESTMENTS-AT-VALUE> 186,742,805
<RECEIVABLES> 1,073,506
<ASSETS-OTHER> 377
<OTHER-ITEMS-ASSETS> 33,708
<TOTAL-ASSETS> 187,850,396
<PAYABLE-FOR-SECURITIES> 4,104,287
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 16,357,943
<TOTAL-LIABILITIES> 20,462,230
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 145,292,054
<SHARES-COMMON-STOCK> 9,727,676
<SHARES-COMMON-PRIOR> 4,136,954
<ACCUMULATED-NII-CURRENT> 785,667
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7,467,441
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 13,843,004
<NET-ASSETS> 167,388,166
<DIVIDEND-INCOME> 974,453
<INTEREST-INCOME> 884,070
<OTHER-INCOME> 0
<EXPENSES-NET> 1,040,208
<NET-INVESTMENT-INCOME> 818,315
<REALIZED-GAINS-CURRENT> 8,229,058
<APPREC-INCREASE-CURRENT> 11,548,353
<NET-CHANGE-FROM-OPS> 20,595,726
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,288
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,715,373
<NUMBER-OF-SHARES-REDEEMED> 1,124,814
<SHARES-REINVESTED> 163
<NET-CHANGE-IN-ASSETS> 110,581,427
<ACCUMULATED-NII-PRIOR> 2,288
<ACCUMULATED-GAINS-PRIOR> (794,265)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 935,029
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,040,208
<AVERAGE-NET-ASSETS> 110,003,402
<PER-SHARE-NAV-BEGIN> 13.73
<PER-SHARE-NII> 0.08
<PER-SHARE-GAIN-APPREC> 3.40
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.21
<EXPENSE-RATIO> 0.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from
Manufacturers Investment Trust Annual Report dated December 31, 1997 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 18
<NAME> EMERGING GROWTH TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 300,902,866
<INVESTMENTS-AT-VALUE> 343,991,933
<RECEIVABLES> 63,074
<ASSETS-OTHER> 679
<OTHER-ITEMS-ASSETS> 777
<TOTAL-ASSETS> 344,056,463
<PAYABLE-FOR-SECURITIES> 210,479
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<OTHER-ITEMS-LIABILITIES> 68,071,903
<TOTAL-LIABILITIES> 68,282,382
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 228,654,897
<SHARES-COMMON-STOCK> 11,426,808
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,030,117
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 43,089,067
<NET-ASSETS> 275,774,081
<DIVIDEND-INCOME> 472,409
<INTEREST-INCOME> 1,709,880
<OTHER-INCOME> 0
<EXPENSES-NET> 2,462,227
<NET-INVESTMENT-INCOME> (279,938)
<REALIZED-GAINS-CURRENT> 4,042,230
<APPREC-INCREASE-CURRENT> 32,648,479
<NET-CHANGE-FROM-OPS> 36,410,771
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,574,551
<NUMBER-OF-SHARES-REDEEMED> 2,213,030
<SHARES-REINVESTED> 10,109
<NET-CHANGE-IN-ASSETS> 609,120
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 229,135
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 383,016
<AVERAGE-NET-ASSETS> 26,957,067
<PER-SHARE-NAV-BEGIN> 10.90
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> (3.77)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0.02
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.16
<EXPENSE-RATIO> 1.42
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 19
<NAME> QUANTITATIVE EQUITY TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 161,504,947
<INVESTMENTS-AT-VALUE> 180,436,025
<RECEIVABLES> 403,021
<ASSETS-OTHER> 388
<OTHER-ITEMS-ASSETS> 726
<TOTAL-ASSETS> 180,840,160
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13,310,455
<TOTAL-LIABILITIES> 13,310,455
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 125,435,242
<SHARES-COMMON-STOCK> 7,446,999
<SHARES-COMMON-PRIOR> 5,303,145
<ACCUMULATED-NII-CURRENT> 1,960,998
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 21,202,387
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18,931,078
<NET-ASSETS> 167,529,705
<DIVIDEND-INCOME> 2,211,869
<INTEREST-INCOME> 403,368
<OTHER-INCOME> 0
<EXPENSES-NET> 654,239
<NET-INVESTMENT-INCOME> 1,960,998
<REALIZED-GAINS-CURRENT> 21,256,016
<APPREC-INCREASE-CURRENT> 9,038,807
<NET-CHANGE-FROM-OPS> 32,255,821
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,133,709
<NUMBER-OF-SHARES-REDEEMED> 989,855
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 75,630,008
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (53,629)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 913,996
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,001,999
<AVERAGE-NET-ASSETS> 130,670,831
<PER-SHARE-NAV-BEGIN> 17.33
<PER-SHARE-NII> 0.26
<PER-SHARE-GAIN-APPREC> 4.91
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 22.50
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from
Manufacturers Investment Annual Report dated December 31, 1997 and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 20
<NAME> BALANCED TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 172,846,296
<INVESTMENTS-AT-VALUE> 183,736,970
<RECEIVABLES> 8,056,340
<ASSETS-OTHER> 427
<OTHER-ITEMS-ASSETS> 26,754
<TOTAL-ASSETS> 191,820,491
<PAYABLE-FOR-SECURITIES> 4,426,178
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10,349,670
<TOTAL-LIABILITIES> 14,775,848
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 141,221,922
<SHARES-COMMON-STOCK> 9,159,210
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 4,637,642
<OVERDISTRIBUTION-NII> 0
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<EQUALIZATION> 0
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<NUMBER-OF-SHARES-SOLD> 10,275,611
<NUMBER-OF-SHARES-REDEEMED> 1,116,401
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 177,044,643
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<GROSS-EXPENSE> 1,385,529
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from
Manufacturers Investment Trust Annual Report dated December 31, 1997 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
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<NAME> REAL ESTATE SECURITIES TRUST
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
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<SERIES>
<NUMBER> 22
<NAME> CAPITAL GROWTH BOND TRUST
<MULTIPLIER> 1
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<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
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<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 54,473,178
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<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
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<PERIOD-TYPE> YEAR
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 24
<NAME> INTERNATIONAL STOCK TRUST
<MULTIPLIER> 1
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<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 25
<NAME> EQUITY INDEX TRUST
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<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 26
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<PERIOD-TYPE> YEAR
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
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<S> <C>
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THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
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THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
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THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
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THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
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THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
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THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
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<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 40,644
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 40,644
<REALIZED-GAINS-CURRENT> 1,761,470
<APPREC-INCREASE-CURRENT> 229,927
<NET-CHANGE-FROM-OPS> 2,032,041
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 40,644
<DISTRIBUTIONS-OF-GAINS> 234,940
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,820,037
<NUMBER-OF-SHARES-REDEEMED> 197,797
<SHARES-REINVESTED> 22,372
<NET-CHANGE-IN-ASSETS> 49,104,527
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,627
<AVERAGE-NET-ASSETS> 21,702,821
<PER-SHARE-NAV-BEGIN> 12.50
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 1.26
<PER-SHARE-DIVIDEND> 0.05
<PER-SHARE-DISTRIBUTIONS> 0.29
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.47
<EXPENSE-RATIO> 0.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
MANUFACTURERS INVESTMENT TRUST ANNUAL REPORT DATED DECEMBER 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000756913
<NAME> MANUFACTURERS INVESTMENT TRUST
<SERIES>
<NUMBER> 36
<NAME> SMALL COMPANY VALUE TRUST
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> OCT-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 70,767,722
<INVESTMENTS-AT-VALUE> 69,525,010
<RECEIVABLES> 499,980
<ASSETS-OTHER> 10,104
<OTHER-ITEMS-ASSETS> 55
<TOTAL-ASSETS> 70,035,149
<PAYABLE-FOR-SECURITIES> 2,704,459
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 239,606
<TOTAL-LIABILITIES> 2,944,065
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 69,039,109
<SHARES-COMMON-STOCK> 5,618,018
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 56,115
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (761,428)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,242,712)
<NET-ASSETS> 67,091,084
<DIVIDEND-INCOME> 163,162
<INTEREST-INCOME> 58,234
<OTHER-INCOME> 0
<EXPENSES-NET> 152,392
<NET-INVESTMENT-INCOME> 69,004
<REALIZED-GAINS-CURRENT> (762,160)
<APPREC-INCREASE-CURRENT> (1,242,712)
<NET-CHANGE-FROM-OPS> (1,935,868)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,662,330
<NUMBER-OF-SHARES-REDEEMED> 44,312
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 67,091,084
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 134,688
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 152,392
<AVERAGE-NET-ASSETS> 50,891,360
<PER-SHARE-NAV-BEGIN> 12.50
<PER-SHARE-NII> 0.01
<PER-SHARE-GAIN-APPREC> (0.57)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.94
<EXPENSE-RATIO> 1.19
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
