|
|
|
|
|
|
|
|
|
|
Previous: ALLMERICA INVESTMENT TRUST, NSAR-B, 2000-02-29 |
Next: MANUFACTURERS INVESTMENT TRUST, NSAR-B, 2000-02-29 |
<PAGE> 1
Manufacturers
Investment Trust
Annual Report
December 31, 1999
VENTURE(R)
VARIABLE PRODUCTS
[GRAPHIC OF TWO PEOPLE ON BICYCLES]
Audited Financial Statements
[MANULIFE FINANCIAL LOGO]
Venture Annuities: Issuer and Administrator
The Manufacturers Life Insurance Company of North America
Venture SPVL, VUL, Survivorship VUL and COLI VUL
Issuer and Administrator
The Manufacturers Life Insurance Company of America
0200:70317
<PAGE> 2
MANUFACTURERS INVESTMENT TRUST
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
February 22, 2000
Dear Fellow Investors:
It is my pleasure to present to you the 1999 audited financial statements of the
Manufacturers Investment Trust, the mutual fund that is the underlying
investment vehicle for your variable insurance product or retirement plan. The
financial statements that follow reflect operations for the period ending
December 31, 1999. During 1999, total net assets of the Trust grew from $13.40
billion as of December 31, 1998, to $18.15 billion as of December 31, 1999,
reflecting the ongoing interest in tax-deferred variable insurance products as
vehicles for retirement and estate planning.
At Manulife Financial, we are committed to helping you meet your long-term
financial goals by delivering you a full range of investment options and
expertise. Part of this commitment is our disciplined and comprehensive asset
manager selection and review process, which seeks to provide our investors with
the highest likelihood of good performance, both today and tomorrow. To this
end, we upgraded our investment program on May 1, 1999, adding six of the
world's best asset managers, including A I M Capital Management, Inc., Capital
Guardian Trust Company, Franklin Advisers, Inc., Pacific Investment Management
Company (PIMCO), State Street Global Advisors (SSgA), and Templeton Investment
Counsel, Inc. This manager lineup now provides you access to 16 outstanding
organizations that together manage over $2.9 trillion in assets and have over
750 years of investment leadership.
1999 PERFORMANCE (BY MAJOR INDEX)
<TABLE>
<CAPTION>
-------------------------------------------
<S> <C>
NASDAQ Comp 85.59
S&P Tech Sector 75.13
MSCI Pacific 57.96
Russell 2000 Growth 43.09
MSCI EAFE 27.30
Dow Jones Indust Avg 25.22
Russell 2000 21.26
S&P 500 21.04
SB High Yield 1.73
LB Agg Bond -0.83
Russell 2000 Value -1.49
LB Govt/Corp -2.15
MS REIT -4.55
</TABLE>
As can be seen in the above graph, 1999 provided another reminder of how
volatile the markets can be, and how important diversification can be in helping
you meet your long-term financial goals. Diversification can help you avoid the
ups and downs of investing in a single type of investment strategy. By including
investments that respond to market or economic factors, when one is doing
poorly, another may be dong well. With our range of asset classes, investment
styles, and world-class managers, at Manulife Financial we help make
diversification easy.
Despite the fact that it is a new millennium and that some are talking about a
new paradigm for investing, at Manulife Financial we still believe that the
tried and true investment principles apply. We encourage you to work closely
with a professional investment advisor to periodically review and update your
financial program to ensure that it is structured to best help you meet your
goals. Now may be the right time to reevaluate your mix of portfolios to take
advantage of our new investment alternatives, to pursue greater defensive
strategies during market volatility, or to add new asset classes to increase
your diversification and spread out your risks.
Thank you for choosing Manulife Financial. We look forward to serving your
investment needs and continuing to earn your trust throughout 2000.
Sincerely,
/s/ Matthew R. Schiffman
MATTHEW R. SCHIFFMAN
President
<PAGE> 3
MANUFACTURERS INVESTMENT TRUST
INDEX TO ANNUAL REPORT
<TABLE>
<CAPTION>
Page
----
<S> <C>
Portfolio Performance and Manager's Commentary......................................................... iii
Report of Independent Accountants...................................................................... 1
Statements of Assets and Liabilities................................................................... 2
Statements of Operations............................................................................... 10
Statements of Changes in Net Assets.................................................................... 18
Financial Highlights................................................................................... 31
Portfolio of Investments:
Pacific Rim Emerging Markets Trust................................................................ 70
Science & Technology Trust........................................................................ 73
International Small Cap Trust..................................................................... 74
Aggressive Growth Trust........................................................................... 77
Emerging Small Company Trust...................................................................... 80
Small Company Blend Trust......................................................................... 85
Mid Cap Growth Trust.............................................................................. 90
Mid Cap Stock Trust............................................................................... 93
Overseas Trust.................................................................................... 95
International Stock Trust......................................................................... 100
International Value Trust......................................................................... 103
Mid Cap Blend Trust............................................................................... 106
Small Company Value Trust......................................................................... 111
Global Equity Trust............................................................................... 120
Growth Trust...................................................................................... 122
Large Cap Growth Trust............................................................................ 124
Quantitative Equity Trust......................................................................... 128
Blue Chip Growth Trust............................................................................ 130
Real Estate Securities Trust...................................................................... 134
Value Trust....................................................................................... 136
Equity Index Trust................................................................................ 138
Growth & Income Trust............................................................................. 146
U.S. Large Cap Value Trust........................................................................ 148
Equity-Income Trust............................................................................... 150
Income & Value Trust.............................................................................. 153
Balanced Trust.................................................................................... 158
High Yield Trust.................................................................................. 161
Strategic Bond Trust.............................................................................. 166
Global Bond Trust................................................................................. 173
Total Return Trust................................................................................ 176
Investment Quality Bond Trust..................................................................... 179
Diversified Bond Trust............................................................................ 188
U.S. Government Securities Trust.................................................................. 191
Money Market Trust................................................................................ 192
Lifestyle Aggressive 1000 Trust................................................................... 194
Lifestyle Growth 820 Trust........................................................................ 194
Lifestyle Balanced 640 Trust...................................................................... 194
Lifestyle Moderate 460 Trust...................................................................... 195
Lifestyle Conservative 280 Trust.................................................................. 195
Notes to Financial Statements.......................................................................... 196
</TABLE>
ii
<PAGE> 4
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, fifteen Portfolios have had portfolio management
changes, namely the Aggressive Growth, Emerging Small Company, Mid Cap Growth,
Overseas, Mid Cap Blend, Global Equity, Growth, Large Cap Growth, Blue Chip
Growth, Equity-Income, Income & Value, Global Bond, Investment Quality Bond,
Diversified Bond and U.S. Government Securities Trusts. For these Portfolios,
the tables also show a cumulative 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. IF THESE WERE INCLUDED, PERFORMANCE WOULD BE
LOWER.
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 gains 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, 1999. The views
expressed are those of the portfolio manager as of December 31, 1999, and are
subject to change based on market and other conditions. Information about a
Portfolio's holdings, asset allocation or country diversification is historical
and is no indication of future portfolio composition, which will vary.
iii
<PAGE> 5
PACIFIC RIM EMERGING MARKETS TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing, under
& POLICIES: normal conditions, at least 65% of the Trust's net assets in
common stocks and equity-related securities of established,
larger-capitalization, non-U.S. companies in the Pacific Rim
that have attractive long-term prospects for capital growth.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Richard James Crook, Stephen Hill and Hugh Williams
INCEPTION DATE: October 4, 1994
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[PACIFIC RIM EMERGING MARKETS TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
PACIFIC RIM EMERGING MARKETS
TRUST MSCI PACIFIC INDEX
---------------------------- ------------------
<S> <C> <C>
Sept. 1994 10000 10000
Dec. 1994 9473 9750
Mar. 1995 9303 9597
Sept.1995 10097 9588
Dec. 1995 10548 10042
Mar. 1996 11184 10255
Sept. 1996 11422 9901
Dec. 1996 11582 9198
Mar. 1997 11284 8289
Sept.1997 10328 8648
Dec. 1997 7630 6868
Mar. 1998 7971 7090
Sept. 1998 5850 5589
Dec. 1998 7279 7053
Mar. 1999 7823 7847
Sept. 1999 9623 9589
Dec. 1999 11854 11140
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
-----------------------------------------------------
Since Since
Periods Ending December 31, 1999 1 Year 5 Year Inception 5 Year Inception
<S> <C> <C> <C> <C> <C>
MSCI Pacific Index* 57.96% 2.70% 2.08% 14.26% 11.40%
Pacific Rim Emerging Markets Trust 62.87% 4.59% 3.30% 25.13% 18.54%
* 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 1999, the Pacific Rim Emerging Markets Trust returned 62.87%,
outperforming the 57.96% return of the MSCI Pacific Index.
ENVIRONMENT: The year 1999 turned out to be a good period for equities. Most of
the Pacific Rim markets registered their best performance in several years.
Although the Australian market was a relatively sluggish performer, it closed
the year at record levels. In Australia, natural resources stocks outperformed
the main benchmark. Optimistic predictions for the region's economies and
markets in 2000 were also positive for stocks. The Trust underperformed its peer
group because it had a more conservative bias toward the smaller Pacific markets
during the first three quarters of the year. It also had a relatively high cash
position. The Trust outperformed its index because it was underweight in
Australia and New Zealand, two areas that lagged other Pacific markets.
OUTLOOK: If U.S. interest rate increases remain as modest as they were in 1999
and if there is no recession in the U.S., the early stage recovery process in
Asia is likely to continue during 2000. Such a recovery would likely provide a
solid backdrop for regional equity markets. Returns may not be as high as those
of 1999, but the prospects for improving corporate profits should underpin
positive share price performance in the coming months.
iv
<PAGE> 6
SCIENCE & TECHNOLOGY TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing at least
& POLICIES: 65% of the portfolio's total assets in the common stocks of
companies expected to benefit from the development,
advancement, and use of science and technology. Current
income is incidental to the portfolio's objective.
SUBADVISER: T. Rowe Price Associates, Inc.
PORTFOLIO MANAGERS: Charles A. Morris
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
<TABLE>
<CAPTION>
LIPPER SCIENCE & TECHNOLOGY FUND
SCIENCE & TECHNOLOGY TRUST INDEX
-------------------------- --------------------------------
<S> <C> <C>
December 1996 10000.00 10000.00
10744.00 10760.00
9896.00 9787.00
March 1997 9344.00 9050.00
9704.00 9446.00
10840.00 10570.00
June 1997 11040.00 10668.00
12336.00 12164.00
12168.00 12239.00
September 1997 12616.00 12758.00
11680.00 11410.00
11632.00 11313.00
December 1997 11071.00 10783.00
11242.00 10974.00
12607.00 12280.00
March 1998 12827.00 12381.00
13436.00 12912.00
12323.00 11965.00
June 1998 12981.00 12667.00
12339.00 12548.00
9575.00 10192.00
September 1998 10787.00 11395.00
12063.00 12264.00
13510.00 13639.00
December 1998 15867.00 15846.00
17882.00 17898.00
16069.00 16029.00
March 1999 17873.00 17663.00
18004.00 17884.00
18233.00 17859.00
June 1999 20674.00 20178.00
20649.00 20172.00
21797.00 21282.00
September 1999 22333.00 21571.00
23749.00 23843.00
26654.00 27379.00
December 1999 31652.00 33895.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
-------------------------------------------------------
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
Lipper Science and Technology Fund Index* 113.90% 50.21% 238.95%
Science & Technology Trust 99.49% 46.88% 216.52%
* 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 1999, the Science & Technology Trust returned 99.49%,
underperforming the 113.90% return of the Lipper Science & Technology Fund
Index.
ENVIRONMENT: Fundamentals across the technology landscape improved throughout
the year. Semiconductor demand rose until it absorbed existing supply.
Corporations around the world implemented Internet-centric computing
architectures. Communications carriers advanced the build-out of their Internet
infrastructures. Demand for digital wireless services was extremely robust.
E-commerce went mainstream. The expansion of e-commerce forced virtually every
company in nearly every region of the world to determine the best way of
leveraging the Internet to expand revenues and streamline operations. The
maturing personal computer industry stood poised to benefit from the symbiotic
effect between more functional operating systems and more powerful processors.
During the year, the shortfall in the Trust's performance relative to its Index
was due largely to the Trust's conservative nature compared to its peers. The
Trust remains broadly diversified across the primary segments of the technology
sector. Performance was affected positively by the Trust's holdings in the
electronic commerce, semiconductor and communication areas of the economy. While
the Trust had its share of underachievers, significant disappointments were few
and far between.
OUTLOOK: When the uninterrupted surge in technology stocks and the nearly
universal optimism and extreme valuations are considered, any erosion in
near-term fundamentals could trigger a sizable correction. Therefore, the Trust
will maintain its mandate to invest in the most promising investment
opportunities within the technology arena with a healthy respect for the
volatility and risk inherent in this sector.
v
<PAGE> 7
INTERNATIONAL SMALL CAP TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve long-term capital appreciation through
& POLICIES: investments in the common stocks of foreign companies with
market capitalizations or annual revenues of $1 billion or
less.
SUBADVISER: Founders Asset Management LLC
PORTFOLIO MANAGERS: Tracy P. Stouffer
INCEPTION DATE: March 4, 1996
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
<TABLE>
<CAPTION>
INTERNATIONAL SMALL CAP MSCI WORLD EX-U.S. SMALL
TRUST MSCI WORLD EX-U.S. INDEX CAP INDEX
----------------------- ------------------------ ------------------------
<S> <C> <C> <C>
10000.00 10000.00 10000.00
March 1996 10048.00 10214.00 10190.00
10344.00 10518.00 10702.00
10576.00 10342.00 10531.00
June 1996 10624.00 10389.00 10485.00
10240.00 10088.00 9921.00
10304.00 10129.00 10019.00
September 1996 10424.00 10406.00 10071.00
10632.00 10339.00 10012.00
10832.00 10768.00 10189.00
December 1996 10920.00 10622.00 9848.00
11033.00 10294.00 9707.00
11298.00 10452.00 9881.00
March 1997 11257.00 10466.00 9613.00
10998.00 10533.00 9305.00
11496.00 11230.00 10014.00
June 1997 11641.00 11832.00 10209.00
11601.00 12052.00 9943.00
11143.00 11167.00 9347.00
September 1997 11560.00 11797.00 9240.00
11086.00 10910.00 8750.00
11151.00 10790.00 8101.00
December 1997 11006.00 10896.00 7681.00
11255.00 11363.00 8099.00
11801.00 12106.00 8839.00
March 1998 12476.00 12507.00 9035.00
12827.00 12607.00 9026.00
13359.00 12544.00 9030.00
June 1998 13383.00 12613.00 8683.00
13383.00 12699.00 8534.00
11514.00 11080.00 7346.00
September 1998 10853.00 10766.00 7059.00
11328.00 11890.00 7608.00
11804.00 12495.00 7961.00
December 1998 12311.00 12978.00 8012.00
12738.00 12983.00 7924.00
12125.00 12660.00 7805.00
March 1999 12681.00 13191.00 8226.00
13210.00 13760.00 8860.00
12749.00 13068.00 8532.00
June 1999 13322.00 13581.00 8976.00
13831.00 13975.00 9254.00
13945.00 14019.00 9467.00
September 1999 14349.00 14173.00 9448.00
15036.00 14724.00 9306.00
18819.00 15242.00 9362.00
December 1999 22767.00 16642.00 9357.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
------------------------------------------------------
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
MSCI World ex U.S. Index* 28.27% 14.21% 66.42%
MSCI World ex U.S. Small Cap Index 18.37% -1.72% -6.43%
International Small Cap Trust 84.92% 23.98% 127.67%
* 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 1999, the International Small Cap Trust returned 84.92%,
outperforming the 28.27% return of the MSCI World ex U.S. Index.
ENVIRONMENT: The year 1999 will be remembered for the stunning returns and
positive economic growth of the Asian markets. Japan was a particularly strong
performer. It benefited from a large influx of foreign investment, which drove
up stock valuations. For most of the year, Europe presented the opposite
situation. The general weakness of the euro and the slow growth of the German
economy led to uninspired returns by European markets for most of the year. Many
of these markets, however, rallied in the fourth quarter, as investors regained
confidence in their economic prospects for 2000. Because of concerns about the
ability of small Japanese companies to produce profits, the Trust had limited
exposure to Japanese small companies in the first half of the year. The lack of
investment in Japanese small companies hurt the Trust relative to some of its
peers. Beginning in the third quarter, however, the Trust added several Japanese
small companies to the portfolio, many of which made major contributions to 1999
performance.
OUTLOOK: As the technological revolution continues around the world, small
companies have a great deal to gain. In the years to come, the Internet should
come of age in Europe and Asia. There should also be further developments in
telecommunications and in outsourcing. International small companies stand to
benefit from these trends. The Trust will continue to search for the companies
that may turn these trends into profits.
vi
<PAGE> 8
AGGRESSIVE GROWTH TRUST
(FORMERLY PILGRIM BAXTER GROWTH TRUST)
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve long-term capital appreciation by investing
& POLICIES: primarily in common stocks, convertible bonds, convertible
preferred stocks and warrants of companies that the
subadviser expects to achieve earnings growth over time at a
rate in excess of 15% per year. Many of these companies are
small- and medium-sized.
SUBADVISER: A I M Capital Management, Inc.
PORTFOLIO MANAGERS: Robert M. Kippes, Charles D. Scavone, Kenneth A. Zschappel
and Ryan E. Crane
INCEPTION DATE: January 1, 1997++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[AGGRESSIVE GROWTH TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH TRUST RUSSELL 2000 GROWTH INDEX
----------------------- -------------------------
<S> <C> <C>
December 1996 10000 10000
10128 10250
9296 9631
March 1997 8488 8951
8504 8848
9384 10177
June 1997 9792 10523
10584 11062
10256 11394
September 1997 10704 12303
10088 11564
9872 11288
December 1997 10000 11295
9600 11144
10432 12128
March 1998 10920 12637
10976 12714
9944 11790
June 1998 10480 11911
9544 10916
7384 8396
September 1998 7888 9248
8328 9730
9120 10485
December 1998 10432 11434
10640 11949
9584 10855
March 1999 10008 11242
9559 12234
9640 12254
June 1999 10384 12900
10440 12501
10336 12034
September 1999 10648 12266
11112 12580
12056 13909
December 1999 13872 16361
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since Since++
Periods Ending December 31, 1999 1 Year Inception Inception May 1, 1999
<S> <C> <C> <C> <C>
Russell 2000 Growth Index* 43.09% 17.83% 63.61% 33.73%
Aggressive Growth Trust 32.98% 11.54% 38.72% 44.38%
++ Current subadviser assignment became effective May 1, 1999.
* 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 1999, the Aggressive Growth Trust returned 32.98%,
underperforming the 43.09% return of the Russell 2000 Growth Index. AIM assumed
management of the Trust, formerly called the Pilgrim Baxter Growth Trust and
managed by Pilgrim Baxter & Associates, Ltd., on May 1, 1999. As a result,
performance for 1999 is attributable to both asset management firms. Under AIM's
management, the Aggressive Growth Trust returned 44.38% since May 1,
outperforming the 33.73% return of the Russell 2000 Growth Index for the same
period.
ENVIRONMENT: When 1999 began, many market forecasters believed that the stock
market could not match its 1998 performance. Most forecasters would have been
correct if it was not for the remarkable surge by technology stocks in the
fourth quarter. Technology companies were rewarded for rewriting many of the
rules on how business is done. However, technology stocks were also victims of
much of the stock market's volatility during the year. Technology stocks climbed
to new highs in the spring, sold off in the summer and then set record highs by
the end of the year. The technology sector, which accounted for 56.5% of the
Trust's assets at year end, was responsible for much of the Trust's market cap
appreciation and performance. In an effort to slow economic growth, the Federal
Reserve Board raised interest rates three times in 1999. These rate increases
contributed to the volatility in the markets. In order to focus on companies
with the strongest earnings growth potential, the Trust reduced the number of
stocks in the portfolio to 175 during the year.
OUTLOOK: In 2000, investors will continue to watch the Fed's interest rate
policy. Technology companies and companies directly or indirectly related to the
sector may continue to lead the way. Small and mid cap stocks should continue
the recovery they began in 1999. With a market that is expected to move in line
with earnings growth, the outlook for the Trust is positive.
vii
<PAGE> 9
EMERGING SMALL COMPANY TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing at least
& POLICIES: 65% of the portfolio's total assets in the common stocks of
companies that have market capitalizations which match the
approximate range of capitalization of the Russell 2000
Index at the time of purchase.
SUBADVISER: Franklin Advisers, Inc.
PORTFOLIO MANAGERS: Ed Jamieson, Mike McCarthy and Aidan O'Connell
INCEPTION DATE: January 1, 1997++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[EMERGING SMALL COMPANY TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
EMERGING SMALL COMPANY TRUST RUSSELL 2000 GROWTH INDEX
---------------------------- -------------------------
<S> <C> <C>
December 1996 10000.00 10000.00
10186.00 10250.00
9731.00 9631.00
March 1997 9133.00 8951.00
9079.00 8848.00
10127.00 10177.00
June 1997 10578.00 10523.00
11191.00 11062.00
11298.00 11394.00
September 1997 12293.00 12303.00
11651.00 11564.00
11514.00 11288.00
December 1997 11823.00 11295.00
11303.00 11144.00
12386.00 12128.00
March 1998 13077.00 12637.00
13103.00 12714.00
12223.00 11790.00
June 1998 12551.00 11911.00
11210.00 10916.00
9189.00 8396.00
September 1998 9904.00 9248.00
10435.00 9730.00
10982.00 10485.00
December 1998 11722.00 11434.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since Since++
Periods Ending December 31, 1999 1 Year Inception Inception May 1, 1999
<S> <C> <C> <C> <C>
Russell 2000 Growth Index* 43.09% 17.83% 63.61% 33.73%
Emerging Small Company Trust 73.53% 26.71% 103.41% 77.98%
++ Current subadviser assignment became effective May 1, 1999.
* 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 1999, the Emerging Small Company Trust returned 73.53%,
outperforming the 43.09% return of the Russell 2000 Growth Index. Franklin
Advisers, Inc. assumed management of the Trust, formerly managed by Warburg
Pincus Asset Management, Inc., on May 1, 1999. As a result, performance for 1999
is attributable to both asset management firms. Under Franklin's management, the
Emerging Small Company Trust returned 77.98% since May 1, outperforming the
33.73% return of the Russell 2000 Growth Index for the same period.
ENVIRONMENT: The Trust's outperformance in the fourth quarter and for the year
was due largely to its overweighting of technology stocks and significant
underweighting of financial and retail stocks. The gap between strong technology
and weak non-technology stock performance widened during the quarter as
investors chased the technology stock winners to higher valuations. The Trust
had already established positions in many of these technology stock winners and
was positioned to benefit from their strong, fourth-quarter performance. One
small group of underappreciated non-technology growth stocks rebounded during
the quarter. These stocks were spread widely across sectors as disparate as
health care and producer manufacturing. The recent fundamental improvements in
the homebuilder and real estate investment trust sectors were encouraging. The
Trust has added selectively to a handful of non-technology stocks that have the
potential to be strong performers when the market eventually broadens.
OUTLOOK: Going into 2000, there is strong growth potential for small cap
companies. Healthy growth prospects for the global economy should set the stage
for a broadening of small cap stock performance away from technology. Small cap
companies are positioned to be prominent innovators in creating and delivering
new products, services and technologies in the years ahead.
viii
<PAGE> 10
SMALL COMPANY BLEND TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing
& POLICIES: primarily in equity and equity related securities of
companies with market capitalizations that match the
approximate range of capitalization of the Russell 2000
Index at the time of purchase.
SUBADVISER: Capital Guardian Trust Company
PORTFOLIO MANAGERS: Michael R. Ericksen, James S. Kang and Robert G. Kirby
INCEPTION DATE: May 1, 1999
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
<TABLE>
<CAPTION>
SMALL COMPANY BLEND TRUST RUSSELL 2000 INDEX
------------------------- ------------------
<S> <C> <C>
May 1999 10024 10146
June 1999 10904 10605
July 1999 10688 10314
August 1999 10432 9932
September 1999 10456 9934
October 1999 10696 9974
November 1999 11536 10570
December 1999 12856 11767
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
-----------------------
Since
Periods Ending December 31, 1999 Inception
<S> <C>
Russell 2000 Index* 17.67%
Small Company Blend Trust 28.56%
* 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: Since its inception on May 1, 1999, the Small Company Blend Trust
returned 28.56%, outperforming the 17.67% return of the Russell 2000 Index.
ENVIRONMENT: By year-end, technology and telecommunication stocks drove the
major U.S. indices to all-time highs. Unlike recent periods, small cap stocks
participated in the market's advances. The Russell 2000 Index had its best year
since 1993. The S&P 500 Index rose 21.04%. More spectacularly, the
technology-heavy NASDAQ Composite Index gained 85.60% over the year. The
NASDAQ's performance was the best ever by a major U.S. stock index. Mirroring
their large cap counterparts, the technology-related names in the Russell 2000
Index had the best performance. In a record year for IPO issuance, the offerings
of small company technology stocks excelled, while many small companies outside
the technology sector struggled.
OUTLOOK: The disparity in valuations between the largest U.S. stocks and the
rest of the stock universe is as wide as it has been in several decades.
Therefore, the upside potential is limited for those stocks commanding a premium
for their large size. Small cap stocks, on the other hand, have been neglected
in recent years, despite their greater potential for real long-term growth. The
strong performance of small company stocks in 1999 may be the beginning of a
period in which small cap stocks narrow the valuation gap with their large cap
counterparts. Going forward, we expect there to be good value among selected
financial services companies and in the small cap industrial firms that have
suffered recently from the market's overwhelming preference for "new economy"
stocks.
ix
<PAGE> 11
MID CAP GROWTH TRUST
(FORMERLY SMALL/MID CAP TRUST)
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve long-term capital appreciation by investing
& POLICIES: primarily in common stocks, emphasizing medium-sized and
smaller emerging growth companies.
SUBADVISER: A I M Capital Management, Inc.
PORTFOLIO MANAGERS: Robert M. Kippes, Charles D. Scavone, David P. Barnard,
Kenneth A. Zschappel and Christopher P. Perras
INCEPTION DATE: March 4, 1996++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
<TABLE>
<CAPTION>
MID CAP GROWTH RUSSELL 2000 S&P MID CAP 400 50%/50% RUSSELL MID CAP
TRUST GROWTH INDEX INDEX COMPOSITE INDEX GROWTH INDEX
-------------- ------------ --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Feb. 1996 10000 10000 10000 10000 10000
Mar. 1996 10312 10198 10120 10159 10079
10824 10981 10429 10704 10566
10976 11544 10569 11051 10781
Jun. 1996 10504 10794 10411 10609 10456
9368 9476 9706 9602 9644
9904 10177 10266 10235 10166
Sept. 1996 10456 10702 10714 10721 10812
10248 10240 10745 10506 10685
10864 10525 11350 10948 11315
Dec. 1996 10696 10730 11362 11060 11124
11232 10998 11788 11406 11616
10584 10334 11692 11015 11361
Mar. 1997 9984 9604 11194 10391 10719
10064 9493 11483 10466 10981
10848 10920 12487 11710 11965
Jun. 1997 11448 11290 12838 12073 12297
12520 11869 14109 12980 13474
12384 12225 14092 13167 13341
Sept. 1997 13264 13201 14902 14071 14017
12544 12408 14254 13342 13314
12576 12112 14465 13282 13454
Dec. 1997 12328 12119 15026 13544 13630
12320 11957 14741 13324 13385
13408 13013 15961 14464 14643
Mar. 1998 14288 13559 16681 15094 15257
14176 13642 16985 15278 15464
13720 12651 16220 14379 14829
Jun. 1998 14792 12780 16323 14498 15248
14536 11713 15689 13612 14596
11592 9009 12770 10774 11809
Sept. 1998 12408 9923 13962 11823 12702
13128 10440 15210 12660 13637
14080 11250 15969 13467 14556
Dec. 1998 15816 12268 17899 14889 16064
15672 12820 17202 14934 16546
14912 11647 16301 13860 15737
Mar. 1999 16224 12062 16756 14301 16614
16237 13127 18078 15496 17371
16192 13148 18155 15543 17147
Jun. 1999 17304 13841 19129 16368 18344
16771 13413 18721 15941 17761
16697 12911 18079 15370 17576
Sept. 1999 16818 13160 17520 15281 17427
18050 13497 18414 15866 18774
19622 14924 19381 17121 20719
Dec. 1999 22884 17555 20537 19138 24306
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Average-Annual-Total-Return
Since Since Since**
Periods Ending December 31, 1999 1 Year Inception Inception May 1, 1999
<S> <C> <C> <C> <C>
Russell 2000 Growth Index* 43.09% 15.81% 75.55% 33.73%
S&P Mid Cap 400 Index 14.72% 20.65% 105.37% 13.58%
50%/50% Composite Index+ 28.53% 18.45% 91.38% 23.50%
Russell Mid Cap Growth Index++ 51.29% 26.07% 143.06% 39.92%
Mid Cap Growth Trust 44.69% 24.15% 128.84% 39.52%
</TABLE>
+ Comprised of 50% of the return of the S&P Mid Cap 400 Index and 50% of the
return of the Russell 2000 Growth Index.
++ The Russell Mid Cap Growth Index was added to more accurately reflect the
investment objective of the Mid Cap Growth Trust.
** Current subadviser assignment became effective May 1, 1999.
* 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 1999, the Mid Cap Growth Trust returned 44.69%, underperforming
the 51.29% return of the Russell Mid Cap Growth Index. AIM assumed management of
the Trust, formerly called the Small/Mid Cap Trust and managed by Fred Alger
Management, Inc., on May 1, 1999. As a result, performance for 1999 is
attributable to both asset management firms. Under AIM's management, the Mid Cap
Growth Trust returned 39.52% since May 1, 1999, underperforming the 39.92%
return of the Russell Mid Cap Growth Index for the same period.
ENVIRONMENT: When 1999 began, many market forecasters believed that the stock
market could not match its 1998 performance. Most forecasters would have been
correct if it was not for the remarkable surge by technology stocks in the
fourth quarter. Technology companies were rewarded for rewriting many of the
rules on how business is done. However, technology stocks were also victims of
much of the stock market's volatility. Technology stocks climbed to new highs in
the spring, sold off in the summer and then set record highs by the end of the
year. The technology sector, which accounted for 48.2% of the Trust's assets at
year end, was responsible for much of the Trust's market cap appreciation and
performance. In an effort to slow the economy, the Federal Reserve Board raised
interest rates three times in 1999. These rate increases contributed to the
volatility of the markets. During the year, the Trust focused on companies with
the strongest earnings potential. As a result, the Trust reduced the number of
stocks in the portfolio to 163.
OUTLOOK: In 2000, investors will continue to watch the Federal Reserve Board's
interest rate policy. Technology companies and companies directly or indirectly
related to the sector may continue to lead the way. With a market that is
expected to move in line with earnings growth, the outlook for the Trust is
positive.
x
<PAGE> 12
MID CAP STOCK TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve long-term growth of capital by investing
& POLICIES: primarily in equity securities of companies with market
capitalizations approximately in the range of the Wilshire
Mid Cap 750 Index.
SUBADVISER: Wellington Management Company, LLP
PORTFOLIO MANAGER: Frank V. Wisneski
INCEPTION DATE: May 1, 1999
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[MID CAP STOCK TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
RUSSELL MID CAP GROWTH WILSHIRE MID CAP 750
MID CAP STOCK TRUST INDEX INDEX
------------------- ---------------------- --------------------
<S> <C> <C> <C>
May 1999 10104 9871 10177
June 1999 10544 10560 10669
July 1999 10320 10224 10478
August 1999 9536 10118 10150
September 1999 9312 10032 9963
October 1999 9327 10807 10375
November 1999 9415 11927 10902
December 1999 10080 13992 12207
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
-----------------------
Since
Periods Ending December 31, 1999 Inception
<S> <C>
Russell Mid Cap Growth Index* 39.92%
Wilshire Mid Cap 750 Index 22.07%
Mid Cap Stock Trust 0.80%
* 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: Since its inception on May 1, 1999, the Mid Cap Stock Trust
returned .80%, underperforming the 39.92% return of the Russell Mid Cap Growth
Index.
ENVIRONMENT: Four factors contributed to the Trust's disappointing performance.
First, the Trust's diversified mid cap exposure hurt the portfolio because
equity markets were focused on technology issues. Technology stocks were the
clear leaders in 1999, driving markets and valuations to new highs. Second, the
speculative nature of the markets produced a difficult environment for the
Trust's disciplined and fundamentally based strategy. For example, one of the
requirements of the Trust is that the companies in which it invests must have
three years of operating profits. Investors showed nearly insatiable demand for
technology companies that had not demonstrated the profitability potential of
their business models and that were often barely beyond the venture capital
stage. Third, within the mid cap sector, the Trust was invested in the smaller
sized stocks. The larger mid cap stocks outperformed for the year. Finally, some
tactical stock selection decisions detracted from results.
OUTLOOK: The U.S. economy remains on solid footing, with real GDP forecast to
grow 3.7% on average in 2000. Once the speculative influences subside, the Trust
will reflect returns that were typical prior to 1999. No one knows when this
narrow market will begin to broaden, but the valuation gap between large and
small stocks is likely to converge soon. Once this convergence occurs, stronger
relative performance for small and mid cap stocks should result. While
frustrating over the short term, there is nothing in the present market that
would prompt a significant change to the Trust's investment approach.
xi
<PAGE> 13
OVERSEAS TRUST
(FORMERLY INTERNATIONAL GROWTH AND INCOME TRUST)
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve growth of capital by investing at least 65% of
& POLICIES: the portfolio's total assets in foreign securities
(including ADRs and EDRs). The portfolio expects to invest
primarily in equity securities. The portfolio may also
invest in U.S. issuers.
SUBADVISER: Fidelity Management Trust Company
PORTFOLIO MANAGER: Richard R. Mace Jr.
INCEPTION DATE: January 9, 1995++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[OVERSEAS TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
MSCI ALL COUNTRY WORLD
OVERSEAS TRUST MSCI EAFE INDEX EX-US INDEX
-------------- --------------- ----------------------
<S> <C> <C> <C>
Dec. 1994 10000 10000 10000
9820 9618 9546
9620 9593 9494
Mar. 1995 10060 10194 10031
10390 10581 10422
10190 10457 10376
Jun. 1995 10010 10276 10232
10480 10918 10813
10200 10505 10438
Sep. 1995 10270 10713 10617
10080 10428 10333
10280 10721 10576
Dec. 1995 10698 11155 10994
10810 11203 11145
10790 11243 11145
Mar. 1996 10984 11485 11353
11187 11821 11697
11177 11606 11521
Jun. 1996 11320 11675 11580
11054 11336 11195
11167 11363 11261
Sep. 1996 11453 11668 11540
11545 11551 11425
11955 12013 11865
Dec. 1996 12047 11862 11728
11791 11449 11513
11883 11639 11724
Mar. 1997 11976 11685 11699
11983 11749 11798
12485 12516 12526
Jun. 1997 12912 13209 13218
13054 13426 13485
12278 12426 12424
Sep. 1997 12715 13124 13096
11993 12119 11981
11829 11998 11831
Dec. 1997 12037 12106 11968
12387 12662 12326
13196 13478 13148
Mar. 1998 13786 13896 13602
14015 14008 13700
13809 13944 13451
Jun. 1998 13602 14053 13401
13682 14199 13528
11352 12442 11620
Sep. 1998 10778 12064 11375
12064 13325 12566
12672 14011 13242
Dec. 1998 13006 14567 13698
13225 14528 13683
12834 14185 13376
Mar. 1999 13558 14781 14023
13949 15382 14624
13190 14593 13886
Jun. 1999 13765 15165 14558
14270 15620 14868
14454 15681 14952
Sep. 1999 14547 15843 15032
15236 16440 15600
16420 17015 16218
Dec. 1999 18274 18549 17775
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
--------------------------------------------------------------
Since Since Since++
Periods Ending December 31, 1999 1 Year Inception Inception May 1, 1999
<S> <C> <C> <C> <C>
MSCI All Country World ex-US Index* 29.77 % 12.19 % 77.75 % 21.55 %
MSCI EAFE Index+ 27.30 % 13.15 % 85.49 % 20.55 %
Overseas Trust 40.51 % 12.87 % 82.74 % 30.92 %
+ The MSCI EAFE Index was added to more accurately reflect the investment objective of the Overseas Trust.
++ Current subadviser assignment became effective May 1, 1999
* All since inception returns of the indices begin on the month-end closest to the actual inception date of the Trust.
</TABLE>
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For 1999, the Overseas Trust returned 40.51%, outperforming the
27.30% return of the MSCI EAFE Index. Fidelity Management Trust Company assumed
management of the Trust, formerly called the International Growth and Income
Trust and managed by J.P. Morgan Investment Management Inc., on May 1, 1999. As
a result, performance for 1999 is attributable to both asset management firms.
Under Fidelity's management, the Overseas Trust returned 30.92% since May 1,
1999, outperforming the 20.55% return of the MSCI EAFE Index for the same
period.
ENVIRONMENT: The Trust's performance relative to its Index was aided by strong
stock selection in Europe and Japan. Lifted by strong sales, earnings growth and
continued merger activity, telecommunication companies around the world made
impressive gains. Japanese technology and electronics holdings were particularly
strong contributions to the Trust's performance, as rising demand from the
world's improving economies boosted sales and earnings. Conversely, emerging
market positions in Asia and Latin America detracted from performance, as these
regions struggled to regain their economic health.
OUTLOOK: The Trust continues to focus on large cap companies that are industry
leaders and that provide strong earnings growth and shareholder friendly
management. Astute stock selection will continue to be the key to outperformance
in Europe and Japan. The Japanese economic recovery remains on track mainly
because of the government's expansionary fiscal and monetary policies.
Industrial production, business sentiment and labor conditions in Japan are
improving. However, continued corporate restructuring efforts have led to
weakness in underlying capital expenditures and consumption. In Europe, the
Trust will seek additional opportunities, as economic conditions are improving,
consumer and business sentiment is picking up and earnings estimates are being
revised upward.
xii
<PAGE> 14
INTERNATIONAL STOCK TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing the
POLICIES: portfolio's assets primarily in common stocks of
established, non-U.S. companies. The portfolio may also
invest up to 35% of its assets in other equity-related
securities, such as preferred stocks, warrants and
convertible securities as well as corporate and governmental
debt securities. Rowe Price-Fleming intends to
geographically diversify the portfolio, including developed,
newly industrialized and emerging markets.
SUBADVISER: Rowe Price-Fleming International, Inc.
PORTFOLIO MANAGERS: Martin G. Wade, Mark C. J. Bickford-Smith, John R. Ford,
James B.M. Seddon and David J.L. Warren
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[INTERNATIONAL STOCK TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
INTERNATIONAL STOCK TRUST MSCI EAFE INDEX
------------------------- ---------------
<S> <C> <C>
Dec. 1996 10000 10000
9929 9652
10026 9813
Mar. 1997 10018 9850
10097 9905
10733 10552
Jun. 1997 11183 11136
11474 11319
10424 10476
Sept. 1997 11086 11065
10247 10217
10229 10115
Dec. 1997 10264 10206
10604 10675
11221 11363
Mar. 1998 11615 11715
11696 11810
11642 11756
Jun. 1998 11651 11847
11803 11970
10300 10490
Sept. 1998 10067 10171
10962 11234
11437 11812
Dec. 1998 11650 12281
11497 12248
11228 11959
Mar. 1999 11677 12461
12058 12968
11448 12303
Jun. 1999 11888 12785
12067 13169
12175 13220
Sept. 1999 12228 13356
12659 13860
13466 14345
Dec. 1999 15112 15633
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
-------------------------------------------------------
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
MSCI EAFE Index* 27.30% 16.06% 56.33%
International Stock Trust 29.71% 14.76% 51.12%
</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 1999, the International Stock Trust returned 29.71%,
outperforming the 27.30% return of the MSCI EAFE Index.
ENVIRONMENT: An underweight position in Japan detracted from value, while an
overweight position in Latin America added significant value to the Trust. In
Japan, the willingness of government and businesses to grapple with a number of
problems such as financial sector issues, excess capacity, staff reductions and
foreign acquisitions attracted heavy foreign buying. Latin America's stock
markets rebounded after the devaluation of the real, Brazil's currency, in
January. International Monetary Fund (IMF) funding, interest rate reductions and
better fiscal discipline encouraged investors to return to the Latin American
market. Underweight positions in the weaker United Kingdom and German markets
were positive for the Trust. Overweighting in consumer electronics and
electronic components also added value. Underweighting in the utility and
insurance sectors was also positive.
OUTLOOK: Stronger economic growth is expected in Europe. In Japan, declining
domestic demand and capital expenditures and the potential for a strong yen are
likely to keep the economy weak. Elsewhere in Asia, economic recovery is well
under way and should continue. There is reason for cautious optimism in Latin
America. Although valuations of some "new economy" stocks in international
regions have become excessive, there is reason to be enthusiastic about the
growth potential of well-managed telecommunication, Internet-related and
technology businesses. Fortified by a year of improvement, international
economies are poised for better growth with moderate inflation in 2000. In 1999,
greater-than-expected progress in restructuring and reform and more mergers and
acquisitions than anticipated enhanced the earnings potential of international
companies and paved the way for international stock markets to rise in the year
ahead.
xiii
<PAGE> 15
INTERNATIONAL VALUE TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing
POLICIES: primarily in equity securities of companies located outside
the United States, including in emerging markets.
SUBADVISER: Templeton Investment Counsel, Inc.
PORTFOLIO MANAGERS: Gary R. Clemens and Edgerton Scott, III
INCEPTION DATE: May 1, 1999
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[INTERNATIONAL VALUE TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
INTERNATIONAL VALUE TRUST MSCI EAFE INDEX
------------------------- ---------------
<S> <C> <C>
May 1999 9504 9487
June 1999 9920 9859
July 1999 9840 10155
August 1999 9743 10194
September 1999 9519 10299
October 1999 9447 10688
November 1999 9623 11062
December 1999 10384 12055
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative-Total-Return
Since
Periods Ending December 31, 1999 Inception
<S> <C>
MSCI EAFE Index* 20.55%
International Value Trust 3.84%
</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 its inception on May 1, 1999, the International Value Trust
returned 3.84%, underperforming the 20.55% return of the MSCI EAFE Index.
ENVIRONMENT: Another quarter passed in a year that provided a great deal of
anxiety and excitement for investors. In the fourth quarter, the effect of Y2K
on global markets was a major concern. Except for a few emerging market
countries, returns for virtually every country were positive. The market favored
large cap and technology stocks. These stocks had soaring price/earnings ratios
and benefited from index fund buying. The Trust continues to use prudence in its
investment approach. It continues to favor companies with sound fundamentals and
reasonable valuations, and it maintains a well-diversified portfolio. During the
fourth quarter, the Trust remained underweighted in Japan. Although there were
bargains in Japan, in general valuations were high relative to earnings growth
rates. At year-end, the Trust had a 7.1% weighting in Japan. The Trust was
somewhat underweighted in Europe, where it was invested heavily in more cyclical
areas, which are producing solid returns from restructuring activity and renewed
global economic growth. The Trust's stock selection the United Kingdom detracted
from performance, while its emerging market exposure contributed positively to
performance. Telecommunication stocks, in particular, benefited the Trust.
OUTLOOK: The potential for value stocks to outpace growth stocks is encouraging.
Investor infatuation with growth has resulted in one of the worst periods of
underperformance for value style managers. This trend may be reversed by the
extreme valuation difference between growth and value and the growing number of
mergers and acquisitions that may occur in Europe and Asia. Increased volatility
in the world markets may also encourage investors to protect their investments
by owning companies with good assets and solid earnings prospects.
xiv
<PAGE> 16
MID CAP BLEND TRUST
(FORMERLY EQUITY TRUST)
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve growth of capital by investing the portfolio's
POLICIES: assets primarily in common stocks of U.S. issuers or
securities convertible into, or that carry the right to buy,
common stocks. Although current income is a secondary
objective, growth of income may accompany growth of capital.
SUBADVISER: Fidelity Management Trust Company
PORTFOLIO MANAGERS: Bahaa W. Fam and Richard B. Fentin
INCEPTION DATE: June 18, 1985**
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
<TABLE>
<CAPTION>
MID CAP BLEND TRUST S&P 500 INDEX BLENDED INDEX RUSSELL MID CAP
------------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
Dec. 1989 21258.00 21871.00 21871.00 21262.00
19526.00 20403.00 20403.00 19529.00
19892.00 20667.00 20667.00 19896.00
20525.00 21210.00 21210.00 20529.00
20010.00 20686.00 20686.00 20014.00
21483.00 22703.00 22703.00 21487.00
21119.00 22544.00 22544.00 21124.00
20622.00 22472.00 22472.00 20627.00
18305.00 20443.00 20443.00 18309.00
17328.00 19437.00 19437.00 17333.00
17080.00 19365.00 19365.00 17085.00
18040.00 20612.00 20612.00 18045.00
Dec. 1990 18752.00 21177.00 21177.00 18756.00
19546.00 22113.00 22113.00 19552.00
20721.00 23696.00 23696.00 20727.00
21119.00 24260.00 24260.00 21125.00
21341.00 24328.00 24328.00 21346.00
22218.00 25369.00 25369.00 22224.00
21324.00 24210.00 24210.00 21330.00
22100.00 25343.00 25343.00 22107.00
22572.00 25939.00 25939.00 22580.00
22184.00 25513.00 25513.00 22191.00
22555.00 25855.00 25855.00 22562.00
21290.00 24811.00 24811.00 21296.00
Dec. 1991 22116.00 27646.00 27646.00 22123.00
22690.00 27132.00 27132.00 22696.00
22858.00 27479.00 27479.00 22863.00
21729.00 26941.00 26941.00 21734.00
21170.00 27725.00 27725.00 21175.00
21119.00 27875.00 27875.00 21125.00
20504.00 27470.00 27470.00 20510.00
21239.00 28577.00 28577.00 21244.00
20743.00 28000.00 28000.00 20749.00
21051.00 28322.00 28322.00 21056.00
21922.00 28424.00 28424.00 21928.00
23238.00 29382.00 29382.00 23244.00
Dec. 1992 23870.00 29767.00 29767.00 23876.00
24519.00 29984.00 29984.00 24525.00
23784.00 30389.00 30389.00 23790.00
24588.00 31042.00 31042.00 24594.00
24109.00 30282.00 30282.00 24114.00
25856.00 31099.00 31099.00 25862.00
26052.00 31202.00 31202.00 26059.00
25571.00 31055.00 31055.00 25577.00
26641.00 32239.00 32239.00 26646.00
27532.00 32000.00 32000.00 27539.00
27818.00 32650.00 32650.00 27825.00
27104.00 32343.00 32343.00 27113.00
Dec. 1993 27764.00 32741.00 32741.00 27771.00
28798.00 33837.00 33837.00 28807.00
28584.00 32924.00 32924.00 28594.00
27407.00 31492.00 31492.00 27416.00
27748.00 31901.00 31901.00 27756.00
27409.00 32421.00 32421.00 27417.00
26166.00 31620.00 31620.00 26173.00
26750.00 32667.00 32667.00 26756.00
28087.00 33996.00 33996.00 28094.00
27447.00 33177.00 33177.00 27454.00
28407.00 33937.00 33937.00 28414.00
27428.00 32691.00 32691.00 27434.00
Dec. 1994 27616.00 33169.00 33169.00 27623.00
27409.00 34031.00 34031.00 27416.00
28501.00 35351.00 35351.00 28510.00
29594.00 36398.00 36398.00 29602.00
30955.00 37457.00 37457.00 30964.00
32112.00 38937.00 38937.00 32122.00
34672.00 39852.00 39852.00 34682.00
37442.00 41179.00 41179.00 37453.00
37840.00 41290.00 41290.00 37850.00
38997.00 43020.00 43020.00 39008.00
38864.00 42869.00 42869.00 38876.00
39832.00 44756.00 44756.00 39844.00
Dec. 1995 39433.00 45584.00 45584.00 39445.00
40439.00 47152.00 47152.00 40451.00
41387.00 47604.00 47604.00 41402.00
41785.00 48061.00 48061.00 41799.00
43248.00 48768.00 48768.00 43262.00
44589.00 50026.00 50026.00 44603.00
43751.00 50231.00 50231.00 43765.00
41007.00 47996.00 47996.00 41021.00
42515.00 49013.00 49013.00 42530.00
44756.00 51768.00 51768.00 44772.00
45175.00 53186.00 53186.00 45192.00
47688.00 57223.00 57223.00 47705.00
Dec. 1996 47374.00 56102.00 56102.00 47390.00
50181.00 59585.00 59585.00 50196.00
48233.00 60068.00 60068.00 48248.00
45217.00 57569.00 57569.00 45233.00
47164.00 61006.00 61006.00 47182.00
50659.00 64752.00 64752.00 50678.00
52261.00 67640.00 67640.00 52280.00
56071.00 73010.00 73281.00 56091.00
55125.00 68951.00 72482.00 55143.00
57700.00 72730.00 76621.00 57718.00
54258.00 70300.00 73640.00 54273.00
55283.00 73555.00 75393.00 55298.00
Dec. 1997 56492.00 74820.00 77474.00 56509.00
56334.00 75651.00 76017.00 56351.00
60827.00 81105.00 81962.00 60848.00
63744.00 85258.00 85847.00 63762.00
64122.00 86119.00 86062.00 64139.00
62345.00 84638.00 83402.00 62362.00
63106.00 88074.00 84553.00 63123.00
60568.00 87141.00 80520.00 60585.00
50003.00 74540.00 67637.00 50019.00
51716.00 79318.00 72013.00 51735.00
56348.00 85767.00 76924.00 56370.00
58950.00 90964.00 80570.00 58975.00
Dec. 1998 61806.00 96204.00 85300.00 61829.00
61645.00 100225.00 85155.00 61668.00
59266.00 97108.00 82319.00 59288.00
61139.00 100992.00 84896.00 61161.00
68714.00 104901.00 91170.00 68739.00
68927.00 102425.00 90905.00 68952.00
72566.00 108110.00 94114.00 72593.00
69896.00 104737.00 91535.00 69922.00
68057.00 104213.00 89165.00 68083.00
66397.00 101357.00 86026.00 66421.00
66901.00 107773.00 90104.00 66926.00
70902.00 109961.00 92699.00 70928.00
Dec. 1999 43811.00 53244.00 46110.00 37140.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
------Average-Annual-Total-Return----------Cumulative-Total-Return-
Since**
Periods Ending December 31, 1999 1 Year 5 Year 10 Year Dec 13, 1991 5 Year 10 Year
<S> <C> <C> <C> <C> <C> <C>
Blended Index+* 18.23% 24.91% 16.51% 18.94% 204.04% 361.10%
S&P 500 Index 21.04% 28.55% 18.20% 21.08% 251.08% 432.44%
Russell Mid Cap Index++ 18.23% 21.86% 15.92% 18.30% 168.68% 338.11%
Mid Cap Blend Trust 27.75% 23.38% 14.02% 17.44% 185.90% 271.40%
</TABLE>
+ Blended Index reflects the change from the S&P 500 Index to the Russell Mid
Cap Index as primary benchmark, effective July 1997. This change was made to
more accurately reflect the investment objective of the Mid Cap Blend Trust.
++ The Russell Mid Cap Index was added to more accurately reflect the investment
objective of the Mid Cap Blend Trust.
** Current subadviser assignment became effective December 13, 1991.
* 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 1999, the Mid Cap Blend Trust returned 27.75%, outperforming
the 18.23% return of the Russell Mid Cap Index.
ENVIRONMENT: The stock market rallied in the fourth quarter, setting a new
investment record. For five consecutive years the stock market produced returns
that exceeded 20 percent. Growth stocks trounced value stocks by some of the
widest margins on record. This divergence between growth and value can be
attributed to a robust rally in technology stocks during the fourth quarter.
Technology stocks accounted for roughly 64% of the Russell Mid Cap Index's total
return. Consumer nondurables, capital goods and utility stocks also contributed
to the Index's returns. The strongest performance in the Trust came from
technology holdings, which were overweighted in the portfolio. The Trust's
underweighted energy position also gave performance a boost. Utility stocks
turned in the second highest return, but the Trust's relatively smaller position
in these stocks minimized their contribution to performance. Despite relatively
small weightings, good stock selection in the health care, financial and utility
sectors aided performance. Transportation and retail holdings underperformed.
OUTLOOK: Corporate profits are robust, the economy is showing surprisingly
strong growth, yet inflation remains benign. The Federal Reserve Board will
likely tighten interest rates in February. While higher rates may have an
adverse impact on high P/E stocks, there is reason for optimism about equity
prospects as long as earnings continue to grow.
xv
<PAGE> 17
SMALL COMPANY VALUE TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing the
POLICIES: portfolio's assets in equity securities of smaller companies
80% of which, under normal circumstances, will have market
values of $1 billion or less, and that are traded
principally in the United States. AXA Rosenberg uses several
computer models to assist in the stock selection process.
SUBADVISER: AXA Rosenberg Investment Management LLC
PORTFOLIO MANAGERS: Barr M. Rosenberg, Kenneth Reid, Floyd Coleman and Stephen
O. Dean
INCEPTION DATE: October 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[SMALL COMPANY VALUE TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
SMALL COMPANY VALUE
TRUST RUSSELL 2000 INDEX RUSSELL 2000 VALUE INDEX
------------------- ------------------ ------------------------
<S> <C> <C> <C>
Sept-97 10000 10000 10000
Oct-97 9512 9728 9728
Nov-97 9496 9835 9835
Dec-97 9552 9665 10168
Jan-98 9368 9512 9984
Feb-98 10032 10216 10587
Mar-98 10448 10637 11017
Apr-98 10622 10696 11071
May-98 10141 10120 10679
Jun-98 9965 10141 10620
Jul-98 9213 9320 9788
Aug-98 7652 7510 8255
Sept-98 8140 8098 8722
Oct-98 8164 8428 8981
Nov-98 8677 8870 9224
Dec-98 9101 9419 9514
Jan-99 9037 9544 9298
Feb-99 8341 8771 8663
Mar-99 8356 8908 8591
Apr-99 8627 9706 9375
May-99 8771 9848 9663
Jun-99 9276 10293 10013
Jul-99 9139 10011 9775
Aug-99 8891 9641 9419
Sept-99 8899 9643 9230
Oct-99 8810 9681 9046
Nov-99 9099 10259 9093
Dec-99 9828 11421 9371
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
-------------------------------------------------------
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
Russell 2000 Index* 21.26% 6.08% 14.21%
Russell 2000 Value Index+ -1.49% -2.85% -6.29%
Small Company Value Trust 8.00% -0.77% -1.72%
</TABLE>
+ The Russell 2000 Value Index was added to more accurately reflect the
investment objective of the Small Cap Value Trust.
* 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 1999, the Small Company Value Trust returned 8.00%,
outperforming the -1.49% return of the Russell 2000 Value Index.
ENVIRONMENT: Because of a remarkable rally in the fourth quarter, small cap
stocks posted strong returns for 1999. For the first year since 1993, the
Russell 2000 Index, which returned 21.26%, outperformed the S&P 500 Index, which
returned 21.04%. Not all small cap stocks participated equally in the gains for
1999. For the year, the Russell 2000 Growth Index rose 43.09% while the Russell
2000 Value Index declined 1.49%. This is the largest spread between small cap
value and small cap growth stocks in the 21-year history of the Index. Since the
beginning of the recent small cap growth surge in September 1998, the Russell
2000 Growth Index has outperformed the Russell 2000 Value Index by 81.34%. The
increasingly extreme domination by growth stocks over value stocks represents a
market environment in which the performance of the Trust relative to the Russell
2000 Index will generally suffer. However, because the Trust's strategy focuses
on relative value (that is, uncovering bargains within each sector), performance
in this growth environment will be much stronger than a passive small cap value
strategy.
OUTLOOK: The strategy of the Trust remains unchanged. It seeks to outperform its
benchmark by identifying individual stocks that are undervalued relative to
similar stocks.
xvi
<PAGE> 18
GLOBAL EQUITY TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve long-term capital appreciation by investing the
POLICIES: Trust's assets primarily in equity securities of issuers
throughout the world, including issuers in the United States
and emerging markets.
SUBADVISER: Morgan Stanley Asset Management Inc.
PORTFOLIO MANAGER: Frances Campion, Richard Boon and Paul Boyne
INCEPTION DATE: March 18, 1988++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
<TABLE>
<CAPTION>
GLOBAL EQUITY TRUST MSCI WORLD INDEX
------------------- ----------------
<S> <C> <C>
December 1989 12532.00 13002.00
12014.00 12397.00
11864.00 11868.00
11745.00 11153.00
11338.00 10994.00
12421.00 12154.00
12594.00 12070.00
12891.00 12182.00
11757.00 11043.00
10531.00 9882.00
11093.00 10806.00
11052.00 10630.00
December 1990 11226.00 10854.00
11593.00 11254.00
12462.00 12297.00
12094.00 11937.00
12125.00 12032.00
12342.00 12307.00
11618.00 11549.00
12156.00 12097.00
12073.00 12060.00
12208.00 12379.00
12373.00 12582.00
11877.00 12035.00
December 1991 12663.00 12914.00
12746.00 12677.00
12818.00 12460.00
12363.00 11876.00
12718.00 12043.00
13315.00 12524.00
12948.00 12106.00
12707.00 12140.00
12749.00 12437.00
12456.00 12326.00
12110.00 11994.00
12561.00 12211.00
December 1992 12571.00 12312.00
12613.00 12355.00
12791.00 12650.00
13567.00 13386.00
14306.00 14009.00
15102.00 14334.00
14975.00 14216.00
15357.00 14511.00
16196.00 15178.00
16281.00 14900.00
16568.00 15313.00
15538.00 14450.00
December 1993 16706.00 15159.00
17704.00 16162.00
17747.00 15955.00
17205.00 15270.00
17709.00 15745.00
17450.00 15788.00
17644.00 15747.00
18065.00 16049.00
18659.00 16535.00
17979.00 16103.00
18206.00 16564.00
17029.00 15849.00
December 1994 16996.00 16005.00
16068.00 15768.00
16057.00 16001.00
16694.00 16775.00
17096.00 17363.00
17130.00 17515.00
17073.00 17513.00
18062.00 18393.00
17926.00 17986.00
18108.00 18514.00
17687.00 18226.00
17812.00 18862.00
December 1995 18301.00 19417.00
18494.00 19772.00
18665.00 19896.00
19108.00 20231.00
19767.00 20710.00
19582.00 20732.00
19570.00 20840.00
18484.00 20107.00
18912.00 20342.00
19085.00 21143.00
18981.00 21294.00
20206.00 22491.00
December 1996 20610.00 22135.00
20656.00 22405.00
21176.00 22667.00
21003.00 22222.00
21197.00 22953.00
22674.00 24373.00
23792.00 25593.00
24781.00 26776.00
23573.00 24988.00
24845.00 26350.00
23920.00 24967.00
24036.00 25413.00
December 1997 24896.00 25726.00
25012.00 26447.00
26964.00 28241.00
28442.00 29438.00
28738.00 29730.00
28409.00 29361.00
28025.00 30062.00
27573.00 30019.00
23267.00 26020.00
23925.00 26485.00
26160.00 28883.00
27189.00 30606.00
Dec-98 27943.00 32105.00
27683.00 32811.00
26354.00 31942.00
26847.00 33277.00
28565.00 34595.00
28134.00 33335.00
28981.00 34896.00
29274.00 34794.00
29010.00 34739.00
27809.00 34405.00
27995.00 36198.00
28396.00 37222.00
Dec-99 23113.00 30949.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
----------------------------------------------------
Periods Ending December 31, 1999 1 Year 5 Year 10 Year Oct. 1, 1996 5 Year 10 Year
<S> <C> <C> <C> <C> <C> <C>
MSCI World Index* 25.34% 20.25% 11.96% 21.90% 151.42% 209.49%
Global Equity Trust 3.66% 11.25% 8.74% 13.70% 70.43% 131.13%
</TABLE>
++ Current subadviser assignment became effective October 1, 1996.
* 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 1999, the Global Equity Trust returned 3.66%, underperforming
the 25.34% return of the MSCI World Index.
ENVIRONMENT: The Trust's lack of exposure to the largest U.S. index stocks,
which were dominated by technology, had a negative impact on returns. The Trust
also struggled against stock specific weakness in U.S. consumer defensive
stocks, which were overweighted in the portfolio. Megacaps (companies with
capitalizations exceeding $100 billion) continued to be responsible for the
majority of the MSCI World Index returns. Only twenty stocks accounted for 52%
of the World Index's return in 1999. The Trust was wary of the megacap premium,
which was at an all-time high. Contrary to market sentiment, the Trust has
underweighted the very largest 30 stocks in the World Index. The Trust has a 3%
weighting in large stocks, while the Index has a 30% weighting. The biggest risk
in the global equity market has been the technology and telecommunications
bubble that gathered momentum in December. The Trust has stayed clear of this
bubble. The technology sector trades at 50 times cash flow, while the MSCI World
Index trades at 16 times cash flow. The Trust trades at 9 times cash flow.
OUTLOOK: The Trust should perform defensively if market volatility increases.
Likewise, the Trust's overweighting in Europe and underweighting in the United
States should bear fruit in 2000, given the improving fundamentals of the
European economy and more attractive relative valuation. The euro looks set to
strengthen in 2000.
xvii
<PAGE> 19
GROWTH TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing
POLICIES: primarily in equity securities of large capitalization
growth companies with market capitalizations of
approximately $1 billion or greater.
SUBADVISER: State Street Global Advisors
PORTFOLIO MANAGERS: Richard B. Weed, Jennifer W. Bardsley, Peter Stonberg and
David A. Hanna
INCEPTION DATE: July 15, 1996++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[GROWTH TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
GROWTH TRUST RUSSELL 1000 GROWTH INDEX
------------ -------------------------
<S> <C> <C>
June 1996 10000.00 10000.00
9936.00 9414.00
10304.00 9657.00
September 1996 10808.00 10360.00
10768.00 10422.00
11400.00 11205.00
December 1996 11053.00 10985.00
11697.00 11755.00
11432.00 11675.00
March 1997 11077.00 11044.00
11593.00 11777.00
12293.00 12627.00
June 1997 12937.00 13132.00
14056.00 14293.00
13412.00 13457.00
September 1997 14081.00 14119.00
13485.00 13597.00
13598.00 14175.00
December 1997 13855.00 14333.00
14016.00 14762.00
14894.00 15872.00
March 1998 15658.00 16505.00
15892.00 16733.00
15657.00 16258.00
June 1998 16503.00 17253.00
16269.00 17139.00
13621.00 14566.00
September 1998 14442.00 15685.00
15330.00 16946.00
16009.00 18236.00
December 1998 17173.00 19881.00
18320.00 21048.00
17860.00 20086.00
March 1999 18823.00 21144.00
18697.00 21172.00
18416.00 20522.00
June 1999 19713.00 21958.00
19204.00 21260.00
19485.00 21607.00
September 1999 19064.00 21153.00
20343.00 22750.00
21342.00 23976.00
December 1999 23563.00 26477.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since Since++
Periods Ending December 31, 1999 1 Year Inception Inception May 1, 1999
<S> <C> <C> <C> <C>
Russell 1000 Growth Index* 33.16% 32.07% 164.77% 25.04%
Growth Trust 37.20% 28.08% 135.63% 25.61%
</TABLE>
++ Current subadviser assignment became effective May 1, 1999.
* 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 1999, the Growth Trust returned 37.20%, outperforming the
33.16% return of the Russell 1000 Growth Index. State Street Global Advisors
(SSgA) assumed management of the Trust, formerly managed by Founders Asset
Management LLC, on May 1, 1999. As a result, performance for 1999 is
attributable to both asset management firms. Under SSgA's management, the Growth
Trust returned 25.61% since May 1, 1999, outperforming the 25.04% return of the
Russell 1000 Growth Index for the same period.
ENVIRONMENT: During 1999, growth stocks were strongly favored over value stocks.
Stock selection was responsible for the Trust's performance. Selection within
the technology and consumer staples sectors was very good. Selection was
particularly strong in the computer hardware, Internet and household products
industries. For most of the year, the valuation components of the Trust's stock
evaluation process exhibited poor ranking ability and hurt the Trust's stock
selection. This was countered, however, by the good predictive power of the
Trust's estimate revision and price models.
OUTLOOK: The Trust's investment philosophy focuses on evaluating securities from
multiple perspectives. It emphasizes relative valuations and earnings estimate
revisions. It also assesses a stock's price to identify opportune times to trade
a security in light of price trends. The Trust will continue to use this
investment approach. By maintaining this investment approach, the Trust is
expected to outperform the Russell 1000 Growth Index in the future.
xviii
<PAGE> 20
LARGE CAP GROWTH TRUST
(FORMERLY AGGRESSIVE ASSET ALLOCATION TRUST)
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing
POLICIES: primarily in equity securities of companies with large
market capitalizations.
SUBADVISER: Fidelity Management Trust Company
PORTFOLIO MANAGER: Karen Firestone
INCEPTION DATE: August 3, 1989++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
<TABLE>
<CAPTION>
LARGE CAP GROWTH WILSHIRE 5000 MSCI EAFE CUSTOMIZED RUSSELL 1000
TRUST INDEX INDEX BENCHMARK GROWTH INDEX
---------------- ------------- --------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Dec. 1989 9880.00 10270.00 10448.00 10275.00 10486.00
9210.00 9516.00 10061.00 9809.00 9643.00
9370.00 9667.00 9361.00 9746.00 9712.00
9530.00 9909.00 8388.00 9680.00 10098.00
9313.00 9623.00 8323.00 9530.00 9967.00
9916.00 10502.00 9276.00 10223.00 11003.00
9837.00 10451.00 9196.00 10232.00 11121.00
9686.00 10350.00 9328.00 10263.00 11020.00
8908.00 9376.00 8425.00 9556.00 9963.00
8538.00 8861.00 7253.00 9030.00 9426.00
8455.00 8742.00 8386.00 9257.00 9464.00
8839.00 9338.00 7894.00 9491.00 10102.00
Dec. 1990 9181.00 9635.00 8025.00 9705.00 10459.00
9525.00 10103.00 8286.00 10031.00 10995.00
10029.00 10889.00 9177.00 10701.00 11868.00
10201.00 11221.00 8628.00 10785.00 12336.00
10319.00 11256.00 8715.00 10874.00 12278.00
10571.00 11707.00 8809.00 11122.00 12825.00
10288.00 11185.00 8164.00 10746.00 12217.00
10592.00 11710.00 8567.00 11142.00 12872.00
10887.00 12033.00 8395.00 11304.00 13302.00
10813.00 11895.00 8871.00 11422.00 13071.00
10981.00 12114.00 8999.00 11608.00 13275.00
10498.00 11651.00 8581.00 11321.00 12936.00
Dec. 1991 11265.00 12930.00 9027.00 12094.00 14764.00
11107.00 12905.00 8837.00 12042.00 14407.00
11244.00 13082.00 8523.00 12073.00 14428.00
11034.00 12758.00 7963.00 11779.00 14034.00
11326.00 12929.00 8002.00 11887.00 14135.00
11446.00 13008.00 8541.00 12133.00 14240.00
11381.00 12743.00 8139.00 11940.00 13883.00
11835.00 13259.00 7933.00 12168.00 14505.00
11684.00 12978.00 8433.00 12233.00 14328.00
11835.00 13133.00 8269.00 12291.00 14494.00
11803.00 13293.00 7838.00 12196.00 14711.00
12095.00 13844.00 7914.00 12473.00 15351.00
Dec. 1992 12193.00 14090.00 7957.00 12634.00 15503.00
12290.00 14263.00 7959.00 12771.00 15325.00
12442.00 14322.00 8201.00 12928.00 15083.00
12637.00 14690.00 8919.00 13340.00 15374.00
12498.00 14284.00 9768.00 13443.00 14759.00
12689.00 14732.00 9976.00 13719.00 15275.00
12833.00 14800.00 9823.00 13767.00 15135.00
12822.00 14798.00 10169.00 13889.00 14864.00
13213.00 15369.00 10720.00 14344.00 15473.00
13180.00 15399.00 10481.00 14308.00 15359.00
13348.00 15656.00 10807.00 14542.00 15786.00
13269.00 15402.00 9864.00 14167.00 15682.00
Dec. 1993 13448.00 15680.00 10579.00 14521.00 15953.00
13884.00 16173.00 11475.00 15041.00 16321.00
13571.00 15810.00 11446.00 14829.00 16024.00
13068.00 15095.00 10955.00 14296.00 15250.00
13200.00 15240.00 11423.00 14456.00 15322.00
13356.00 15389.00 11360.00 14510.00 15553.00
13081.00 14977.00 11523.00 14373.00 15095.00
13451.00 15421.00 11636.00 14660.00 15611.00
13782.00 16103.00 11914.00 15053.00 16480.00
13475.00 15791.00 11541.00 14793.00 16255.00
13654.00 16049.00 11928.00 15014.00 16638.00
13248.00 15461.00 11358.00 14600.00 16106.00
Dec. 1994 13385.00 15669.00 11432.00 14747.00 16376.00
13320.00 16008.00 10995.00 14852.00 16725.00
13619.00 16646.00 10966.00 15221.00 17426.00
13965.00 17084.00 11653.00 15640.00 17937.00
14304.00 17509.00 12095.00 16014.00 18329.00
14649.00 18106.00 11954.00 16374.00 18969.00
14879.00 18683.00 11747.00 16600.00 19701.00
15415.00 19452.00 12482.00 17151.00 20521.00
15453.00 19641.00 12009.00 17147.00 20543.00
15785.00 20391.00 12246.00 17573.00 21490.00
15619.00 20186.00 11920.00 17449.00 21505.00
16078.00 21041.00 12255.00 17958.00 22342.00
Dec. 1995 16397.00 21385.00 12752.00 18314.00 22469.00
16691.00 21958.00 12807.00 18612.00 23222.00
16780.00 22342.00 12854.00 18743.00 23647.00
16557.00 22586.00 13130.00 18903.00 23678.00
17027.00 23144.00 13515.00 19230.00 24301.00
17208.00 23777.00 13270.00 19423.00 25149.00
17281.00 23581.00 13348.00 19424.00 25184.00
16778.00 22309.00 12961.00 18839.00 23708.00
16955.00 23023.00 12993.00 19156.00 24320.00
17647.00 24249.00 13341.00 19836.00 26090.00
17909.00 24588.00 13208.00 20016.00 26247.00
18680.00 26217.00 13737.00 20896.00 28218.00
Dec. 1996 18528.00 25921.00 13563.00 20725.00 27665.00
18914.00 27309.00 13092.00 21138.00 29604.00
18955.00 27296.00 13309.00 21244.00 29403.00
18501.00 26089.00 13360.00 20766.00 27812.00
19024.00 27227.00 13435.00 21296.00 29659.00
20053.00 29156.00 14312.00 22366.00 31800.00
20745.00 30495.00 15105.00 23176.00 33072.00
21597.00 32840.00 15352.00 24251.00 35996.00
21037.00 31605.00 14209.00 23434.00 33890.00
22189.00 33470.00 15008.00 24449.00 35557.00
21487.00 32355.00 13858.00 23761.00 34242.00
21959.00 33415.00 13719.00 24126.00 35697.00
Dec. 1997 22066.00 34032.00 13842.00 24445.00 36097.00
22358.00 34217.00 14479.00 24821.00 37176.00
23710.00 36708.00 15411.00 26013.00 39972.00
24724.00 38545.00 15889.00 26837.00 41567.00
24976.00 39003.00 16018.00 27073.00 42140.00
24597.00 37965.00 15944.00 26769.00 40944.00
25131.00 39296.00 16069.00 27313.00 43449.00
24994.00 38435.00 16235.00 27119.00 43163.00
21566.00 32450.00 14227.00 24418.00 36684.00
22617.00 34569.00 13795.00 25131.00 39501.00
23822.00 37141.00 15237.00 26494.00 42677.00
25063.00 39480.00 16021.00 27694.00 45925.00
Dec. 1998 26286.00 42006.00 16657.00 28775.00 50067.00
26959.00 43552.00 16612.00 29333.00 53006.00
26201.00 41975.00 16220.00 28606.00 50584.00
27166.00 43595.00 16901.00 29432.00 53250.00
27543.00 45684.00 17589.00 30407.00 53319.00
26703.00 44683.00 16687.00 29729.00 51682.00
28041.00 46998.00 17341.00 30686.00 55300.00
27545.00 45489.00 17861.00 30397.00 53541.00
27966.00 45066.00 17931.00 30273.00 54414.00
27259.00 43890.00 18115.00 30015.00 53271.00
28921.00 46681.00 18798.00 31165.00 57293.00
30220.00 48245.00 19456.00 31922.00 60381.00
Dec. 1999 33332.00 50540.00 20296.00 32750.00 63574.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Average Annual Total Return Since++
Periods Ending December 31, 1999 1 Year 5 Year 10 Year 5 Year 10 Year May 1, 1999
<S> <C> <C> <C> <C> <C> <C>
Wilshire 5000 Index* 23.56% 27.07% 17.59% 231.24% 405.40% 13.62%
MSCI EAFE Index 27.30% 13.15% 7.33% 85.49% 102.96% 20.55%
Customized Benchmark+ 16.95% 17.94% 12.60% 128.20% 227.50% 10.67%
Russell 1000 Growth Index** 33.16% 32.41% 20.32% 307.08% 535.74% 25.04%
Large Cap Growth Trust 25.28% 19.78% 12.79% 146.58% 233.32% 18.58%
</TABLE>
+ Customized Benchmark is comprised of 47.5% of the return of the Wilshire 5000
Index, 20% of the MSCI EAFE Index, 15% of the Lehman Brothers Aggregate Bond
Index, 10% of the 90 Day T-Bill, and 7.5% of the Merrill Lynch High Yield
Index.
** The Russell 1000 Growth Index was added to more accurately reflect the
current investment objective of the Large Cap Growth Trust, which changed on
May 1, 1999.
++ Current subadviser assignment became effective December 13, 1991.
* 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 1999, the Large Cap Growth Trust returned 25.28%,
underperforming the 33.16% return of the Russell 1000 Growth Index.
ENVIRONMENT: Several themes played out in the stock market during the year. Two
of the most prominent were the late-year reversal of small cap stocks and the
overall dominance of growth stocks relative to value stocks. However, it was the
market's ongoing enthusiasm for technological innovation that drove returns. The
Dow Jones Industrial Average and the S&P 500 Index finished the year at record
levels, capping an unprecedented five-year run of double-digit returns. Large
cap stocks consistently beat the broader market in 1999. However, the
performance gap between the S&P 500 Index and the mid and small cap markets
narrowed considerably in the fourth quarter. Important reversals occurred in the
second and fourth quarters as mid and small cap stock returns either matched or
exceeded large cap returns. More important, style proved to be a dominant
characteristic during the year. Growth and value stocks diverged significantly
in all capitalization ranges. The Trust's returns were driven by strong stock
selection in the health and service sectors. Its underweighting relative to its
benchmark in the technology sector was the primary contributor to the Trust's
underperformance.
OUTLOOK: Corporate profits are robust and the economy is showing surprisingly
strong growth. However, inflation remains benign. The Federal Reserve Board will
likely tighten interest rates in February. While higher rates may have an
adverse impact on high P/E stocks, there is reason for optimism about the
prospects for equities as long as earnings continue to grow.
xix
<PAGE> 21
QUANTITATIVE EQUITY TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve intermediate and long-term growth through capital
& POLICIES: appreciation and current income by investing the portfolio's
assets 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 and Rhonda Chang
INCEPTION DATE: April 30, 1987
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
<TABLE>
<CAPTION>
QUANTITATIVE EQUITY TRUST S&P 500 INDEX
------------------------- -------------
<S> <C> <C>
December 1989 12203.00 13440.00
11352.00 12538.00
11576.00 12700.00
11820.00 13034.00
11592.00 12712.00
12532.00 13951.00
12558.00 13854.00
12578.00 13809.00
11650.00 12562.00
11125.00 11944.00
10979.00 11900.00
11482.00 12666.00
December 1990 11707.00 13013.00
12333.00 13589.00
13047.00 14562.00
13207.00 14908.00
13172.00 14950.00
13927.00 15590.00
13102.00 14877.00
14004.00 15574.00
14391.00 15940.00
14074.00 15678.00
14361.00 15888.00
13567.00 15246.00
December 1991 15240.00 16989.00
15364.00 16673.00
15498.00 16886.00
14748.00 16555.00
14623.00 17037.00
14950.00 17129.00
14528.00 16881.00
15189.00 17561.00
14701.00 17206.00
15080.00 17404.00
15364.00 17467.00
16107.00 18056.00
December 1992 16165.00 18292.00
16578.00 18426.00
16737.00 18674.00
16997.00 19076.00
16827.00 18609.00
17355.00 19111.00
17364.00 19174.00
17426.00 19084.00
18084.00 19811.00
18031.00 19664.00
18235.00 20064.00
18100.00 19875.00
December 1993 18332.00 20119.00
19084.00 20793.00
18539.00 20232.00
17424.00 19352.00
17644.00 19604.00
17699.00 19923.00
17123.00 19431.00
17841.00 20074.00
18560.00 20891.00
18237.00 20388.00
18392.00 20855.00
17588.00 20089.00
December 1994 17560.00 20382.00
17662.00 20912.00
18271.00 21724.00
18625.00 22367.00
18639.00 23018.00
19083.00 23927.00
19603.00 24489.00
20289.00 25305.00
20294.00 25373.00
21309.00 26436.00
21190.00 26344.00
22190.00 27503.00
December 1995 22693.00 28012.00
23257.00 28975.00
23645.00 29253.00
23674.00 29534.00
24157.00 29968.00
24680.00 30741.00
24612.00 30868.00
23275.00 29494.00
24059.00 30119.00
25311.00 31812.00
26104.00 32684.00
27483.00 35164.00
December 1996 26762.00 34475.00
28291.00 36616.00
28446.00 36912.00
27334.00 35377.00
28677.00 37489.00
30299.00 39791.00
31611.00 41565.00
34437.00 44866.00
33032.00 42371.00
34901.00 44693.00
33295.00 43200.00
34067.00 45201.00
December 1997 34746.00 45978.00
34731.00 46488.00
37263.00 49840.00
39163.00 52392.00
39428.00 52921.00
38470.00 52011.00
39845.00 54123.00
38940.00 53549.00
33161.00 45806.00
35180.00 48742.00
37931.00 52705.00
40228.00 55898.00
December 1998 43901.00 59118.00
46061.00 61589.00
44564.00 59674.00
46810.00 62061.00
47189.00 64463.00
45929.00 62941.00
48749.00 66435.00
47813.00 64362.00
47163.00 64040.00
45941.00 62285.00
48574.00 66228.00
49715.00 67572.00
December 1999 43997.00 53244.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Periods Ending December 31, 1999 1 Year 5 Year 10 Year 5 Year 10 Year
<S> <C> <C> <C> <C> <C>
S&P 500 Index* 21.04% 28.55% 18.20% 251.08% 432.44%
Quantitative Equity Trust 22.30% 25.05% 15.97% 205.75% 339.97%
</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 1999, the Quantitative Equity Trust returned 22.30%,
outperforming the 21.04% return of the S&P 500 Index.
ENVIRONMENT: The stock market's advance in 1999 was fueled by optimism, as
corporate America continued to demonstrate strong profit growth. The economy was
strong with GDP growth of about 3.9%. The performance of stocks was narrow, with
growth stocks exhibiting exceptional returns. Technology stocks had a
spectacular run. They rose more than 60% for the year. Consumer nondurables,
health care, transportation and financials had negative returns for the year. A
growth emphasis and technology overweighting contributed to the Trust's strong
returns. Technology continues to produce strong growth. Telecommunications
equipment, data management and semiconductor stocks are driving performance in
the technology sector, and the Trust benefits by remaining overweighted in these
areas. The Trust is also overweighted in health care stocks. The Trust remains
modestly overweighted in the technology and merchandising sectors. Stocks within
these sectors continue to produce above-average earnings momentum and earnings
growth.
OUTLOOK: Because performance of the S&P 500 Index has been strong and valuations
are high, the market may experience some profit taking in the near term.
However, over the next year, the market is likely to generate healthy returns.
GDP growth is estimated to be 3.7% in 2000, and inflation should remain around
2%. The favorable economic environment and expected profit growth of at least
10% in 2000 are positive for stocks. The stocks in the Trust continue to deliver
strong earnings growth and momentum and have valuations near the benchmark
averages. With these characteristics, the Trust is well positioned for
outstanding long-term performance.
xx
<PAGE> 22
BLUE CHIP GROWTH TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To provide long-term growth of capital by investing at least
POLICIES: 65% of the portfolio's total assets in the common stocks of
large and medium blue chip companies as defined by the
subadviser. These are firms that the subadviser believes are
well established in their industries and have the potential
for above-average earnings growth. Current income is a
secondary objective.
SUBADVISER: T. Rowe Price Associates, Inc.
PORTFOLIO MANAGER: Larry J. Puglia
INCEPTION DATE: December 11, 1992++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
<TABLE>
<CAPTION>
BLUE CHIP GROWTH TRUST S&P 500 INDEX
---------------------- -------------
<S> <C> <C>
10000.00 10000.00
December 1992 9930.00 10064.00
9930.00 10137.00
9530.00 10274.00
9590.00 10495.00
8832.00 10238.00
9112.00 10515.00
9052.00 10549.00
8782.00 10500.00
9102.00 10900.00
9102.00 10819.00
9332.00 11039.00
9393.00 10935.00
December 1993 9553.00 11069.00
9663.00 11440.00
9473.00 11131.00
8962.00 10647.00
9114.00 10786.00
9064.00 10961.00
8702.00 10691.00
8933.00 11044.00
9476.00 11494.00
9275.00 11217.00
9365.00 11474.00
9164.00 11053.00
December 1994 9094.00 11214.00
9305.00 11506.00
9506.00 11952.00
9787.00 12306.00
9922.00 12664.00
10235.00 13164.00
10659.00 13474.00
11103.00 13922.00
11093.00 13960.00
11416.00 14545.00
11244.00 14494.00
11577.00 15132.00
December 1995 11507.00 15411.00
11890.00 15942.00
12173.00 16095.00
12264.00 16249.00
12756.00 16488.00
13252.00 16913.00
13120.00 16983.00
12260.00 16227.00
12725.00 16571.00
13728.00 17502.00
13677.00 17982.00
14689.00 19347.00
December 1996 14487.00 18968.00
15094.00 20145.00
15115.00 20309.00
14426.00 19464.00
15067.00 20626.00
15937.00 21892.00
16599.00 22869.00
17850.00 24684.00
17040.00 23312.00
17862.00 24589.00
17445.00 23768.00
17984.00 24869.00
December 1997 18389.00 25296.00
18597.00 25577.00
20007.00 27421.00
20914.00 28825.00
21131.00 29116.00
20606.00 28615.00
21543.00 29777.00
21306.00 29462.00
17871.00 25201.00
18933.00 26817.00
20569.00 28997.00
21830.00 30754.00
December 1998 23629.00 32526.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since++ Since
Periods Ending December 31, 1999 1 Year 5 Year Inception Oct. 1, 1996 5 Year Inception
<S> <C> <C> <C> <C> <C> <C>
S&P 500 Index* 21.04% 28.55% 21.46% 28.33% 251.08% 296.32%
Blue Chip Growth Trust 19.43% 25.42% 15.84% 25.00% 210.31% 182.20%
</TABLE>
++ Current subadviser assignment became effective October 1, 1996.
* 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 1999, the Blue Chip Growth Trust returned 19.43%,
underperforming the 21.04% return of the S&P 500 Index.
ENVIRONMENT: During the year, U.S. corporations benefited from strong GDP
growth, low inflation and improvement in international economies. Markets
rallied around a belief that technology, telecommunications and the Internet
would enhance growth while limiting inflation. These developments added fuel to
the bull market in U.S. equities, but the threat of inflation and three Federal
Reserve Board interest rate hikes caused occasional volatility. The Trust's
performance was muted somewhat because it held relatively few cyclical,
technology and foreign stocks. The pharmaceutical and financial stocks in the
Trust posted more moderate performance. Although the Trust had less technology
exposure than the average growth fund, several technology holdings performed
well. Telecommunication, entertainment and media stocks were valuable
contributors to performance. On the other hand, several financial stocks
weakened on rising interest rates. A number of holdings in supermarket chains
and drugstores struggled against Internet competition.
OUTLOOK: On balance, inflation and interest rates should rise at a manageable
pace and corporate earnings among blue chip stocks should remain strong. Even
so, almost all stocks are expensive by most conventional measures, and more
market volatility seems certain. Therefore, careful stock selection with a focus
on valuation and sustainable growth should become increasingly important.
xxi
<PAGE> 23
REAL ESTATE SECURITIES TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve a combination of long-term capital appreciation
& POLICIES: and current income by investing in real estate-related
equity and debt securities. The portfolio will invest
principally in real estate investment trusts (REITs) and
equity and fixed income securities issued by companies that
invest in real estate or related interests.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Robert Lutzko and Steven Brett Hryb
INCEPTION DATE: April 30, 1987
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
<TABLE>
<CAPTION>
REAL ESTATE SECURITIES TRUST NAREIT INDEX
---------------------------- ------------
<S> <C> <C>
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 14311
23418 15424
December 1995 25066 16931
26577 18139
December 1996 33761 22984
35514 24357
December 1997 39975 27322
38104 25915
December 1998 33402 22180
34187 23274
December 1999 27497 21789
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Periods Ending December 31, 1999 1 Year 5 Year 10 Year 5 Year 10 Year
<S> <C> <C> <C> <C> <C>
Morgan Stanley REIT Index+++* -4.55% 7.61% N/A 44.30% N/A
NAREIT Index -6.48% 7.71% 8.10% 44.94% 117.89%
Real Estate Securities Trust -8.00% 7.14% 10.64% 41.16% 174.97%
+ The Morgan Stanley REIT Index commenced on December 30, 1994, therefore the 10 year
return period is not applicable for this index.
++ The cumulative since inception return for the Morgan Stanley REIT Index is for the
period of December 30, 1994 to December 31, 1999.
* 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 1999, the Real Estate Securities Trust returned -8.00%,
underperforming the -4.55% return of the Morgan Stanley REIT Index.
ENVIRONMENT: Real estate and related securities had a difficult year. REITs have
now posted two consecutive years of negative performance. With an S&P 500 Index
return of 21.04% and a NASDAQ gain of more than 85%, investor focus was on
growth. Value stocks, including REITs, took a back seat. Many REITs traded at
significant discounts to their net asset value. Many companies, in an attempt to
take advantage of these prices, bought back what they considered to be very
inexpensive stock only to see further weakness. The poor valuations
substantially stifled any merger activity within the sector, particularly in the
latter half of the year. The Trust's performance was held back in the first half
of the year by small and mid cap REITs that underperformed large cap REITs. The
Trust's performance was also dampened by exposure to poorly performing real
estate financial securities.
OUTLOOK: Fundamentals remain intact. Growth in Funds From Operations (FFO) and
secure dividends should renew investor interest in this overlooked group.
Portfolio diversification through the addition of real estate lending securities
should also improve the Trust's characteristics in 2000.
xxii
<PAGE> 24
VALUE TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE: To realize an above-average total return over a market cycle
of three to five years, consistent with reasonable risk by
investing the portfolio's assets 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. The subadviser seeks equity
securities it believes to be undervalued relative to the
stock market in general, as measured by the S&P 500 Index,
based on value measures such as price/earnings and
price/book ratios, as well as fundamental research.
SUBADVISER: Miller Anderson & Sherrerd, LLP
PORTFOLIO MANAGERS: Robert J. Marcin, Richard M. Behler and Nicholas J. Kovich
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
<TABLE>
<CAPTION>
VALUE TRUST S&P 500 INDEX RUSSELL MIDCAP VALUE
----------- ------------- --------------------
<S> <C> <C> <C>
'Dec-96' 10000.00 10000.00 10000.00
'Jan-97' 10328.00 10625.00 10314.00
'Feb-97' 10464.00 10708.00 10489.00
'Mar-97' 10144.00 10268.00 10170.00
'Apr-97' 10536.00 10881.00 10427.00
'May-97' 11168.00 11543.00 11041.00
'Jun-97' 11576.00 12061.00 11451.00
'Jul-97' 12232.00 13021.00 12302.00
'Aug-97' 12120.00 12291.00 12158.00
'Sept-97' 12480.00 12965.00 12912.00
'Oct-97' 11904.00 12532.00 12519.00
'Nov-97' 12120.00 13112.00 12942.00
'Dec-97' 12214.00 13338.00 13437.00
'Jan-98' 11991.00 13486.00 13176.00
'Feb-98' 12882.00 14459.00 14056.00
'Mar-98' 13328.00 15199.00 14780.00
'Apr-98' 13353.00 15352.00 14697.00
'May-98' 13155.00 15088.00 14354.00
'Jun-98' 12858.00 15701.00 14400.00
'Jul-98' 12330.00 15534.00 13670.00
'Aug-98' 10563.00 13288.00 11748.00
'Sept-98' 10613.00 14139.00 12433.00
'Oct-98' 11537.00 15289.00 13238.00
'Nov-98' 12065.00 16216.00 13703.00
'Dec-98' 12003.00 17150.00 14120.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
--------------------------------------------------------
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
Russell Mid Cap Value Index* -0.11 % 12.15 % 41.04 %
Value Trust -2.79 % 5.28 % 16.69 %
* 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 1999, the Value Trust returned -2.79%, underperforming the
- -0.11% return of the Russell Mid Cap Value Index.
ENVIRONMENT: In 1999, style bias was the most important portfolio characteristic
in determining performance. Therefore, while growth investors celebrated another
year of exceptional returns, value investors remained mired in mediocrity. While
value investing struggled, low
P/E investing suffered even more. With equal weighted returns of -6.20%, the
Trust's low P/E universe continued to account for the poorest segment of stock
market performance. On the bright side, the Trust significantly outperformed its
low P/E universe, indicating that stock selection added value. The portfolio's
meager position in technology stocks had the most significant impact on relative
performance in 1999. The extremely high valuations for most technology companies
generally preclude ownership in the Trust's low P/E portfolio.
OUTLOOK: The best opportunities on a valuation-to-growth basis are in the
industrial franchise, financial service, health care and consumer durable
sectors. The Trust's existing portfolio generates 70% to 75% of the benchmark's
growth and provides profitability at 30% to 40% of its valuations. These
valuation spreads have widened more and persisted longer than most investors
would have forecast. Eventually, valuation spreads should recalibrate to more
historical levels and, once again, valuations will matter. Such a situation
should result in very good relative performance by low P/E value stocks, which
should benefit the Trust.
xxiii
<PAGE> 25
EQUITY INDEX TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To approximate the aggregate total return of publicly traded
POLICIES: common stocks included in the Standard & Poor's 500
Composite Stock Price Index (the S&P 500 Index). The
portfolio is designed to provide an economical and
convenient means of maintaining a widely diversified
investment in the United States equity market as part of an
overall investment strategy. The portfolio is not actively
managed; rather, the subadviser tries to match the S&P 500
Index's performance by investing the portfolio's assets in
common stocks included in the S&P 500 Index in their
approximate respective market value weightings.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Robert Lutzko and Steven Brett Hryb
INCEPTION DATE: February 14, 1996
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
<TABLE>
<CAPTION>
EQUITY INDEX TRUST S&P 500 INDEX
------------------ -------------
<S> <C> <C> <C> <C> <C>
January 1996 10000.00 10000.00
9740.00 9759.00
March 1996 9895.00 9853.00
10038.00 9998.00
10283.00 10255.00
June 1996 10369.00 10298.00
9888.00 9839.00
10069.00 10048.00
September 1996 10633.00 10613.00
10951.00 10903.00
11749.00 11731.00
December 1996 11486.00 11501.00
12206.00 12215.00
12303.00 12314.00
March 1997 11733.00 11802.00
12475.00 12506.00
13281.00 13274.00
June 1997 13807.00 13866.00
14946.00 14967.00
14130.00 14135.00
September 1997 14871.00 14910.00
14441.00 14412.00
15054.00 15079.00
December 1997 15337.00 15338.00
15533.00 15509.00
16627.00 16627.00
March 1998 17475.00 17478.00
17656.00 17655.00
17343.00 17351.00
June 1998 18032.00 18055.00
17831.00 17864.00
15264.00 15281.00
September 1998 16266.00 16260.00
17581.00 17582.00
18645.00 18648.00
December 1998 19718.00 19722.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
S&P 500 Index* 21.04% 25.96% 146.97%
Equity Index Trust 20.58% 25.01% 137.76%
* 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 1999, the Equity Index Trust returned 20.58%, underperforming
the 21.04% return of the S&P 500 Index.
ENVIRONMENT: The S&P 500 Index ended the year in record territory. Traditional
measures of inflation -- such as the Producer Price Index, Consumer Price Index
and hourly wage data -- rose slightly during the year but remained under
control. Economic growth during the year remained strong, with GDP growth of
about 3.9%. Record index returns masked the narrow breadth of the market during
the year. The focus throughout the year was on growth stocks, particularly in
the technology sector. A rich IPO calendar, replete with Internet and
infrastructure names contributed to the performance of the technology sector.
Traditional value stocks generally underperformed during the year. Despite the
relatively stable economic picture, interest rate worries triggered by Federal
Reserve Board action contributed to market volatility and weighed heavily on the
interest rate sensitive sectors. Sectors that outperformed the market included
technology, merchandisers, consumer services and capital goods. Underperforming
sectors included durables, financials, health care, utilities and energy.
OUTLOOK: In order to match the performance of the S&P 500 Index, the Trust will
continue to purchase securities represented in the Index in relative weights to
the index.
xxiv
<PAGE> 26
GROWTH & INCOME TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To provide long-term growth of capital and income consistent
POLICIES: with prudent investment risk by investing the portfolio's
assets primarily in common stocks of US issuers the
subadviser believes are of high quality. The portfolio may
also invest in securities convertible into or that carry the
right to buy common stocks. The Trust may also invest up to
20% of its assets in foreign securities.
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 INDEX
[GROWTH & INCOME TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
GROWTH & INCOME TRUST S&P 500 INDEX
--------------------- -------------
<S> <C> <C>
March 1991 10000 10000
9940
10270 10428
9950 9951
10330 10417
10570 10662
10380 10487
10530 10628
10040 10198
December 1991 11080 11364
10810 11153
10980 11295
10740 11074
10921 11396
10982 11458
10921 11292
11376 11747
11305 11509
11588 11642
11668 11684
11981 12077
December 1992 12213 12236
12375 12325
12435 12491
12829 12760
12567 12447
12814 12783
12844 12826
12793 12765
13204 13252
13162 13154
13388 13421
13121 13294
December 1993 13388 13458
13850 13909
13706 13533
13193 12945
13337 13113
13569 13327
13252 12997
13812 13428
14224 13974
13960 13637
14171 13950
13527 13438
December 1994 13770 13634
13780 13988
14340 14531
14678 14961
15150 15397
15639 16005
15965 16381
16421 16926
16562 16972
17073 17683
16812 17621
17497 18397
December 1995 17790 18737
18214 19381
18258 19568
18573 19755
18853 20046
19305 20563
19327 20647
18628 19728
19034 20147
20139 21279
20691 21862
22259 23521
December 1996 21853 23060
23037 24492
23296 24691
22394 23664
23669 25076
25042 26616
26476 27803
28529 30011
26998 28342
28407 29895
27423 28897
28669 30235
December 1997 29027 30755
29355 31096
31360 33338
32939 35045
33393 35399
32540 34790
33819 36203
33664 35819
28781 30639
30564 32603
33264 35254
35098 37390
December 1998 36726 39544
37890 41197
37076 39916
38703 41512
40344 43119
39287 42101
41413 44438
40315 43052
40114 42836
38938 41663
41169 44300
41585 45199
December 1999 43657 47866
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1999 1 Year 5 Year Inception 5 Year Inception
<S> <C> <C> <C> <C> <C>
S&P 500 Index* 21.04% 28.55% 19.80% 251.08% 378.66%
Growth & Income Trust 18.87% 25.96% 18.47% 217.05% 336.57%
</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 1999, the Growth & Income Trust returned 18.87%,
underperforming the 21.04% return of the S&P 500 Index.
ENVIRONMENT: 1999 was an extraordinary period. The S&P 500 Index rose more than
21%, the Dow Jones Industrial Average gained more than 25% and the NASDAQ
Composite Index was up over 85%. Technology stocks drove the markets and
valuations to new highs. Internet-related stocks offered astounding triple-digit
returns, dwarfing even traditional technology leaders. The narrow momentum of
the market was exemplified by the fact that the S&P 500 Index, excluding
technology, rose 3.1% for the year. Electric utilities, transportation and many
consumer brand companies were down for the period. The Trust's strength came
from within the growth universe, as exceptional gains in many U.S. large cap
technology stocks set the pace for a strong year. U.S. value stocks paled in
comparison to growth stocks. However, technology, media and consumer
discretionary stocks led the performance of the S&P 500 Index and of the Trust.
OUTLOOK: An accelerating world economy remains central to the Trust's outlook
for 2000, because the Trust emphasizes stocks that benefit from a synchronized
global recovery. For example, the Trust has investments in materials, industrial
and selected technology sectors. A 3.6% world real GDP rate is expected. This
GDP projection is based on a moderate, but still robust, environment in the
United States, acceleration across Europe, a frail Japanese economy and
improving growth in most developing economies. The impact that the Internet will
have on companies is increasingly part of the Trust's investment analysis.
xxv
<PAGE> 27
U.S. LARGE CAP VALUE TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve long-term growth of capital and income by
POLICIES: investing primarily in equity and equity-related securities
of companies with market capitalizations greater than $500
million at the time of purchase.
SUBADVISER: Capital Guardian Trust Company
PORTFOLIO MANAGERS: David I. Fisher, Eugene P. Stein, Donnalisa P. Barnum,
Michael R. Ericksen, Theodore R. Samuels and Terry
Berkemeier
INCEPTION DATE: May 1, 1999
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
RUSSELL 1000 VALUE INDEX US LARGE CAP VALUE TRUST
------------------------ ------------------------
<S> <C> <C>
May 1999 9890 9744
June 1999 10177 10168
July 1999 9879 10040
August 1999 9512 9808
September 1999 9179 9416
October 1999 9708 9743
November 1999 9632 9807
December 1999 9679 10272
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
-----------------------
Since
Periods Ending December 31, 1999 Inception
<S> <C>
Russell 1000 Value Index* -3.21%
U.S. Large Cap Value Trust 2.72%
</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 its inception on May 1, 1999, the U.S. Large Cap Value Trust
returned 2.72%, outperforming the -3.21% return of the Russell 1000 Value Index.
ENVIRONMENT: By year-end, technology and telecommunication stocks drove the
major U.S. indexes to new all-time highs. The S&P 500 Index rose 21.04%, and the
Dow Jones Industrial Average rose 25.22% for the year. These two indexes
produced double-digit returns for the fifth consecutive year. The
technology-heavy NASDAQ Composite Index rose 85.50% for the year. Stock
leadership in the U.S. market was narrow. More stocks in the S&P 500 Index
declined in value than rose in value. Within NASDAQ, gains were concentrated in
a relatively small group of technology names. Half of NASDAQ's stocks declined
an average of 32%.
OUTLOOK: The largest 50 stocks in the S&P 500 index sold at a relative P/E ratio
of about 1.5 times the remaining 450. This is the highest premium in several
decades. The disparity in valuation between a small group of very large stocks
and the rest of the stock universe could mean that the upside potential is
limited for those stocks commanding a premium for their large size. There is
more opportunity in stocks outside the largest fifty, where stock selection and
research can add value. Because the U.S. economy has not slowed, the Federal
Reserve Board appears likely to resume raising interest rates. The Fed had
deferred such moves in late 1999 because of uncertainty about the Y2K issue. A
rising rate environment would make premiums for perceived superior growth more
difficult to justify.
xxvi
<PAGE> 28
EQUITY-INCOME TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To provide substantial dividend income and also long-term
POLICIES: capital appreciation by investing primarily in common stocks
of well-established companies paying above-average
dividends. The subadviser believes that income can
contribute significantly to total return over time and
manages the portfolio to produce a yield above that of the
S&P 500 Index. The Trust seeks equity securities that appear
to be temporarily undervalued by various measures and may be
temporarily out of favor, but have good prospects for
capital appreciation and dividend growth.
SUBADVISER: T. Rowe Price Associates, Inc.
PORTFOLIO MANAGER: Brian C. Rogers
INCEPTION DATE: February 19, 1993++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[EQUITY INCOME TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
EQUITY-INCOME TRUST RUSSELL 1000 VALUE INDEX
------------------- ------------------------
<S> <C> <C>
10000.00 10000.00
February 1993 10170.00 10352.00
10520.00 10657.00
10180.00 10521.00
10470.00 10732.00
10560.00 10970.00
10720.00 11092.00
10760.00 11493.00
10820.00 11511.00
10930.00 11503.00
10970.00 11266.00
December 1993 11310.00 11480.00
11530.00 11914.00
11710.00 11507.00
11380.00 11079.00
11399.00 11291.00
11490.00 11421.00
11329.00 11148.00
11490.00 11495.00
12003.00 11825.00
11933.00 11432.00
11721.00 11591.00
11188.00 11123.00
December 1994 11399.00 11251.00
11329.00 11597.00
12073.00 12056.00
12335.00 12320.00
12517.00 12709.00
12875.00 13244.00
13283.00 13423.00
13681.00 13890.00
13824.00 14086.00
13855.00 14596.00
13385.00 14451.00
13926.00 15184.00
December 1995 14100.00 15565.00
14437.00 16051.00
14723.00 16172.00
14896.00 16447.00
15255.00 16510.00
15573.00 16716.00
15233.00 16730.00
14695.00 16097.00
15145.00 16558.00
15902.00 17217.00
16066.00 17883.00
17020.00 19179.00
December 1996 18900.00 18934.00
17382.00 19852.00
17832.00 20144.00
17437.00 19419.00
17902.00 20234.00
18766.00 21366.00
19491.00 22282.00
20648.00 23958.00
20078.00 23105.00
21055.00 24500.00
20496.00 23817.00
21284.00 24870.00
December 1997 21920.00 25596.00
21767.00 25235.00
22835.00 26933.00
23916.00 28581.00
23777.00 28773.00
23387.00 28347.00
23320.00 28710.00
22646.00 28205.00
20411.00 24008.00
21529.00 25386.00
22848.00 27353.00
23777.00 28628.00
December 1998 23939.00 29601.00
23319.00 29838.00
23130.00 29417.00
23764.00 30026.00
26395.00 32831.00
26175.00 32470.00
26901.00 33411.00
26306.00 32432.00
25493.00 31229.00
24578.00 30136.00
25377.00 31872.00
24971.00 31623.00
December 1999 24753.00 31770.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
-----------------------------------------
Since Since++ Since
Periods Ending December 31, 1999 1 Year 5 Year Inception Oct. 1, 1996 5 Year Inception
<S> <C> <C> <C> <C> <C> <C>
Russell 1000 Value Index* 7.35% 23.07% 18.19% 20.75% 182.38% 217.70%
Equity-Income Trust 3.40% 16.77% 14.11% 14.52% 117.14% 147.53%
</TABLE>
++ Current subadviser assignment became effective October 1, 1996.
* 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 1999, the Equity-Income Trust returned 3.40%, underperforming
the 7.35% return of the Russell 1000 Value Index.
ENVIRONMENT: The market environment for 1999 was characterized by pronounced
investor preferences for growth stocks and an advance led by a relatively small
number of companies. Underweighting in technology, a sector that nearly doubled
in value in 1999, was the main cause of the Trust's lagging relative
performance. Normally, the Trust would not hold large positions in technology
because the lofty valuations of most technology shares exclude them as
candidates for purchase. The Trust's preference for high yielding, lower P/E
companies has been the cornerstone of its investment approach since it began
operations. Because of wide variations in performance among companies and
sectors over the last two years, investors will eventually recognize the
exciting opportunities that exist in areas of the market in which the Trust
invests.
OUTLOOK: Value stocks offer good potential for appreciation, especially when
compared to some of the more extended sectors of the market. When the Trust's
investment style is out of sync with the overall market, the best strategy is to
stay with the basics and concentrate on companies with below average P/E ratios
and above-average dividend yields. The Trust will continue to be managed in its
traditionally conservative style.
xxvii
<PAGE> 29
INCOME & VALUE TRUST
(FORMERLY MODERATE ASSET ALLOCATION TRUST)
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & Seeks the balanced accomplishment of conservation of
POLICIES: principal and long-term growth of capital and income by
investing in both equity and fixed income securities.
SUBADVISER: Capital Guardian Trust Company
PORTFOLIO MANAGER: David I. Fisher, John W. Ressner, Eugene P. Stein, Donnalisa
P. Barnum, Michael R. Ericksen, James R. Mulally, Theodore
R. Samuels, James S. Baker and Terry Berkemeier
INCEPTION DATE: August 3, 1989+++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[MODERATE ASSET ALLOCATION TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS
INCOME & VALUE WILSHIRE 5000 AGGREGATE BOND CUSTOMIZED 60%/40%
TRUST INDEX INDEX BENCHMARK COMPOSITE INDEX
-------------- ------------- --------------- ---------- ---------------
<S> <C> <C> <C> <C> <C>
July 1989 10000 10000 10000 10000 10000
10210 10227 9852 9980 10053
10120 10210 9902 10039 10050
9910 9911 10146 9991 10009
9970 10086 10242 10145 10172
Dec. 1989 10030 10270 10270 10256 10327
9450 9516 10148 9911 9864
9570 9667 10180 9900 9948
9570 9909 10187 9901 10113
9365 9623 10094 9775 9927
9561 10502 10392 10313 10621
9851 10451 10560 10380 10646
9770 10350 10705 10447 10687
9142 9376 10562 9941 10052
8839 8861 10650 9634 9791
8758 8742 10785 9776 9818
9112 9338 11017 10033 10281
Dec. 1990 9405 9635 11189 10235 10516
9719 10103 11327 10502 10846
10155 10889 11424 10990 11341
10286 11221 11502 11111 11536
10392 11256 11627 11216 11611
10551 11707 11694 11409 11936
10317 11185 11688 11182 11609
10594 11710 11851 11498 12000
10871 12033 12107 11703 12270
10871 11895 12352 11839 12251
11051 12114 12490 12015 12400
10828 11651 12604 11870 12145
Dec. 1991 11402 12930 12979 12512 13123
11276 12905 12802 12445 12909
11392 13082 12885 12516 13042
11222 12758 12813 12322 12861
11439 12929 12906 12427 13125
11595 13008 13149 12647 13264
11617 12743 13331 12589 13224
12027 13259 13603 12848 13648
11950 12978 13740 12909 13543
12104 13133 13904 13010 13700
12038 13293 13719 12911 13659
12237 13844 13722 13112 13938
Dec. 1992 12348 14090 13940 13291 14134
12492 14263 14207 13475 14311
12670 14322 14456 13649 14524
12825 14690 14517 13926 14735
12746 14284 14618 13984 14566
12855 14732 14637 14180 14804
13047 14800 14902 14306 14947
13070 14798 14987 14403 14939
13417 15369 15250 14776 15383
13408 15399 15291 14778 15335
13544 15656 15347 14950 15541
13440 15402 15217 14700 15401
Dec. 1993 13590 15680 15299 14940 15549
13937 16173 15506 15329 15945
13648 15810 15236 15101 15581
13209 15095 14859 14633 15021
13248 15240 14741 14684 15093
13347 15389 14739 14725 15239
13149 14977 14707 14616 15000
13483 15421 14999 14900 15412
13681 16103 15017 15171 15796
13421 15791 14797 14944 15477
13658 16049 14783 15077 15683
13273 15461 14751 14808 15321
Dec. 1994 13372 15669 14853 14943 15501
13421 16008 15147 15133 15872
13694 16646 15507 15512 16389
13967 17084 15602 15804 16719
14261 17509 15820 16118 17102
14639 18106 16432 16573 17779
14834 18683 16552 16782 18079
15147 19452 16516 17121 18426
15238 19641 16716 17208 18541
15499 20391 16878 17545 19076
15473 20186 17097 17551 19139
15837 21041 17354 17969 19763
Dec. 1995 16137 21385 17597 18270 20091
16397 21958 17713 18517 20561
16371 22342 17405 18512 20541
16354 22586 17283 18567 20600
16438 23144 17186 18739 20722
16551 23777 17152 18875 21039
16651 23581 17381 18951 21199
16381 22309 17428 18601 20656
16523 23023 17399 18813 20906
17034 24249 17702 19361 21757
17318 24588 18094 19623 22310
17901 26217 18404 20296 23472
Dec. 1996 17745 25921 18233 20143 23113
18029 27309 18289 20469 24010
18071 27296 18335 20552 24137
17702 26089 18131 20160 23437
18148 27227 18403 20607 24410
18862 29156 18578 21338 25401
19386 30495 18799 21909 26201
20243 32840 19307 22784 27734
19658 31605 19143 22267 26713
20486 33470 19426 22991 27747
20101 32355 19708 22718 27350
20418 33415 19798 23005 28162
Dec. 1997 20561 34032 19998 23283 28568
20815 34217 20254 23590 28905
21704 36708 20238 24308 30148
22371 38545 20307 24841 31122
22565 39003 20413 25027 31374
22387 37965 20607 24917 31170
22742 39296 20782 25326 32033
22653 38435 20825 25216 31857
20507 32450 21165 23708 29289
21287 34569 21660 24379 30692
21961 37141 21545 25142 32135
22831 39480 21668 25949 33375
Dec. 1998 23700 42006 21733 26630 34570
24233 43552 21887 27053 35538
23630 41975 21504 26474 34625
24322 43595 21623 27009 35535
24779 45684 21692 27622 36409
24499 44683 21501 27178 35761
25256 46998 21432 27713 36902
24958 45489 21342 27475 36153
24619 45066 21331 27387 36034
24100 43890 21579 27313 35612
24967 46681 21659 28020 37008
24897 48245 21656 28460 37460
Dec. 1999 25642 50540 20986 28657 37479
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Average Annual Total Return Since+++
Periods Ending December 31, 1999 1 Year 5 Year 10 Year 5 Year 10 Year May 1, 1999
<S> <C> <C> <C> <C> <C> <C>
Wilshire 5000 Index* 23.56% 27.07% 17.59% 231.24% 405.40% 13.62%
Lehman Brothers Aggregate Bond Index -.83% 7.73% 7.69% 45.11% 109.86% -0.64%
Customized Benchmark+ 10.37% 14.49% 11.10% 96.69% 186.57% 6.33%
60%/40% Composite Index**++ 12.00% 20.09% 14.12% 149.75% 274.79% 6.40%
Income & Value Trust 8.52% 13.98% 9.87% 92.34% 156.42% 2.79%
</TABLE>
+ Customized Benchmark is comprised of 32.5% of the return of the Wilshire
5000 Index, 10% of the MSCI EAFE Index, 40% of the Lehman Brothers Aggregate
Bond Index, 10% of the 90 Day T-Bill, and 7.5% of the Merrill Lynch High
Yield Index.
** The 60%/40% Composite Index is comprised of 60% of the returns of the S&P
500 Index and 40% of the returns of the Salomon Brothers Broad Investment
Grade Bond Index.
++ The 60%/40% Composite Index was added to more accurately reflect the
investment objective of the Income & Value Trust.
+++ Current subadviser assignment became effective May 1, 1999.
* All since inception returns for the indices begin on the month-end closest
to the actual inception date for the Trust.
PORTFOLIO MANAGER'S COMMENTARY
PERFORMANCE: For 1999, the Income & Value Trust returned 8.52%, underperforming
the 12.00% return of the blended 60% S&P 500 Index/40% Salomon Brothers Broad
Investment Grade Bond Index. Capital Guardian Trust Company (CGTC) assumed
management of the Trust, formerly managed by Fidelity Management Trust Company,
on May 1, 1999. As a result, performance for 1999 is attributable to both asset
management firms. Under CGTC's management, the Income & Value Trust returned
2.79% since May 1, 1999, underperforming the 6.40% return of the blended 60% S&P
500 Index/40% Salomon Brothers Broad Investment Grade Bond Index for the same
period.
ENVIRONMENT: Continuing signs of a synchronized global economic recovery
propelled stocks higher and pushed bonds lower in nearly all developed markets.
After stumbling early in the fourth quarter, U.S. stocks rose significantly.
Small stocks outperformed large ones. In comparison, technology-related issues
soared. The U.S. economy continued to show signs of strength in the fourth
quarter, and economic growth for the third quarter was revised upward to an
annualized 5.7%. Bond yields rose across the curve. The year's higher commodity
prices were influential in nudging interest rates higher. While interest rates
reacted to a continuation of strong U.S. growth, there were few signs of
incipient inflation.
OUTLOOK: While the ongoing strength of the economy should be a positive for U.S.
equities, the market continues to narrow. Megacap growth stocks and technology
stocks continue to push the indexes higher while most stocks languish. Many
market leaders are significantly overvalued, especially in light of 1999's sharp
rise in interest rates. There is reason for caution with the very largest U.S.
stocks. However, there continues to be opportunity elsewhere in the broader
market. The Trust will continue to overweight U.S. equities. On the fixed income
side, there is uncertainty about how high will interest rates need to rise in
order to slow down what the Federal Reserve Board believes is, or will soon be,
excessive growth. Interest rates have already risen significantly, and there is
a small chance that synchronized global growth will force rates much higher.
However, the worst in interest rate hikes may be behind us. Interest rates will
probably peak in 2000.
xxviii
<PAGE> 30
BALANCED TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve current income and capital appreciation by
POLICIES: investing in a balanced portfolio of common stocks, United
States and foreign government obligations and a variety of
corporate fixed income securities.
SUBADVISER: Founders Asset Management LLC
PORTFOLIO MANAGER: Curtis J. Anderson
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[BALANCED TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS 50%/50% COMPOSITE
BALANCED TRUST S&P 500 INDEX AGGREGATE BOND INDEX INDEX
-------------- ------------- -------------------- -----------------
<S> <C> <C> <C> <C>
December 1996 10000 10000 10000 10000
10374 10625 10031 10328
10362 10708 10056 10381
March 1997 10196 10268 9944 10110
10515 10881 10094 10488
10901 11543 10190 10857
June 1997 11239 12081 10311 11165
11570 13021 10589 11760
11208 12291 10499 11381
September 1997 11655 12965 10655 11777
11563 12532 10809 11665
11704 13112 10859 11962
December 1997 11852 13338 10968 12126
12170 13486 11108 12271
12532 14459 11100 12708
March 1998 12777 15199 11137 13055
12891 15352 11195 13155
12821 15088 11302 13105
June 1998 12982 15701 11398 13426
12710 15534 11422 13369
12019 13288 11608 12511
September 1998 12654 14139 11879 13059
13066 15289 11816 13555
13345 16216 11884 14055
December 1998 13458 17150 11919 14429
13298 17867 12004 14783
12972 17311 11794 14423
March 1999 13159 18004 11858 14752
13427 18700 11896 15062
13383 18259 11792 14818
June 1999 13598 19272 11754 15205
13331 18671 11705 14936
13360 18578 11699 14895
September 1999 13093 18069 11834 14778
13293 19213 11878 15273
13137 19603 11877 15427
December 1999 13235 20757 11821 15841
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
S&P 500 Index* 21.04% 27.56% 107.57%
Lehman Brothers Aggregate Bond Index -0.83% 5.73% 18.21%
50%/50% Composite Index+ 9.80% 16.57% 58.41%
Balanced Trust -1.65% 9.79% 32.35%
</TABLE>
+ Comprised of 50% of the return of the S&P 500 Index and 50% of the return of
the Lehman Brothers Aggregate Bond Index.
* 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 1999, the Balanced Trust returned -1.65%, underperforming the
9.80% return of the blended 50% S&P 500 Index/50% Lehman Brothers Aggregate Bond
Index.
ENVIRONMENT: Because equity valuations were high and because there was a
possibility of a down turn in the market, the Trust entered the year in a
defensive position. Consequently, the Trust was heavily weighted in fixed income
securities for much of the year. During 1999, investors were focused primarily
on stocks. As a result, bonds produced poor performance. Companies in all
segments of the technology sector had strong performance during the year.
Because of the Trust's defensive position, it did not participate to the degree
of many of its peers in the performance of technology stocks. However, in the
closing months of the year, despite high valuations, several technology
companies with superior long-term appreciation potential were added to the
portfolio. Because bonds suffered for much of the year, the Trust's fixed income
component was heavily concentrated in one-, two- and three-year Treasury
securities. The duration of the government bond holdings in the Trust is likely
to lengthen in the future. Assets will be strategically allocated to securities
with three-to-six-year durations.
OUTLOOK: While interest rates have risen sharply, the market has remained
unfazed, and little money has moved from equities and into bonds. Therefore, the
Trust's weighting in equities will be increased and its fixed income securities
will be managed with an emphasis on total return.
Since joining the Trust December 8, 1999, Mr. Anderson has increased the equity
stake of the portfolio from 45% to approximately 60%, and he expects to maintain
a 60 to 65% weighting in growth-oriented equities under normal market conditions
going forward.
xxix
<PAGE> 31
HIGH YIELD TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To realize an above average total return over a market cycle
POLICIES: of three to five years, consistent with reasonable risk by
investing the portfolio's assets primarily in high yield
debt securities, including corporate bonds and other fixed
income securities. The Trust's average weighted maturity for
the securities that it purchases ordinarily will be greater
than five years. At times, more than 50% of the Trust's
assets may be invested in mortgage-backed securities. The
Trust may invest up to 100% of its assets in foreign
securities, including emerging market securities, and as a
result be subject to special risks.
SUBADVISER: Miller Anderson & Sherrerd, LLP
PORTFOLIO MANAGER: Robert E. Angevine, Thomas L. Bennett and Stephen F. Esser
INCEPTION DATE: January 1, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
<TABLE>
<CAPTION>
SALOMON BROTHERS HIGH YIELD
HIGH YIELD TRUST MARKET INDEX
---------------- ---------------------------
<S> <C> <C>
December 1996 10000 10000
10058 10075
10144 10246
March 1997 9904 10141
10144 10213
10392 10419
June 1997 10576 10595
10944 10856
10912 10888
September 1997 11136 11056
11032 11144
11138 11201
December 1997 11268 11319
11443 11575
11575 11653
March 1998 11725 11779
11780 11843
11722 11875
June 1998 11747 11901
11864 11997
10922 11192
September 1998 10981 11331
10831 11175
11589 11735
December 1998 11581 11727
11698 11903
11654 11803
March 1999 11869 11903
12326 12152
12012 11961
June 1999 12056 11935
12083 11961
11993 11819
September 1999 12047 11729
12074 11649
12370 11832
December 1999 12508 11930
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
Salomon Brothers High Yield Market Index* 1.73% 6.06% 19.30%
High Yield Trust 8.00% 7.75% 25.08%
</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 1999, the High Yield Trust returned 8.00%, outperforming the
1.73% return of the Salomon Brothers High Yield Market Index.
ENVIRONMENT: High yield bonds outperformed U.S. Treasury securities and high
quality corporate bonds during the year. The performance of the Trust represents
a strong relative return in comparison to the Index and a good absolute return.
Exposure to non-U.S. high yield issues, such as emerging market debt and
euro-denominated securities, had a positive effect on performance. An
overweighting in the telecommunication sector also aided performance. The high
yield sector was one of the best performing areas of the bond market in 1999. It
was boosted by strong growth and a high level of merger and investment activity.
At year-end, telecommunication and emerging market securities continued to have
the most value, and the Trust was overweighted in these types of bonds. As a
result of the Trust's valuation discipline, the Trust continues to maintain an
average credit quality that is higher than that of its benchmark. The Trust's
interest rate sensitivity is close to that of its benchmark.
OUTLOOK: Even with the rebound in the high yield market, yield spreads on high
yield bonds remain historically wide. The high yield market is undervalued at a
time when the fundamental credit quality of most high yield issuers is strong
and the U.S. and global economies continue to show strength. Consequently, the
high yield market should perform well in the near future. The Trust continues to
find attractive investment opportunities in this market.
xxx
<PAGE> 32
STRATEGIC BOND TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve a high level of total return consistent with
POLICIES: preservation of capital by investing the portfolio's assets
among five segments of the fixed income market: (i) United
States Government obligations, (ii) investment grade
domestic corporate fixed income securities, (iii) high
yield, high risk corporate fixed income securities, (iv)
mortgage-backed securities, and (v) investment grade and
high yield international fixed income securities.
SUBADVISER: Salomon Brothers Asset Management Inc.
PORTFOLIO MANAGERS: Peter J. Wilby, David J. Scott and Roger Lavan
INCEPTION DATE: February 19, 1993
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
<TABLE>
<CAPTION>
LEHMAN BROTHERS AGGREGATE BOND
STRATEGIC BOND TRUST INDEX
-------------------- ------------------------------
<S> <C> <C>
February 1993 10000 10000
10050 10042
10080 10112
10150 10125
10400 10309
10460 10367
10550 10549
10560 10577
10760 10617
10760 10526
December 1993 10880 10583
11050 10726
10820 10539
10440 10279
10372 10197
10393 10196
10383 10173
10403 10376
10414 10388
10445 10236
10424 10226
10383 10204
December 1994 10228 10274
10207 10478
10290 10727
10300 10792
10710 10944
11154 11387
11284 11450
11360 11425
11436 11563
11620 11675
11706 11827
11912 12004
December 1995 12194 12173
12651 12265
12464 12042
12475 11958
12640 11891
12745 11887
12886 12028
12979 12059
13155 12038
13576 12247
13893 12519
13939 12733
December 1996 13986 12615
14126 12654
14302 12686
14056 12545
14205 12733
14531 12854
14731 13007
15120 13358
15082 13245
15371 13441
15170 13635
15346 13698
December 1997 15521 13837
15684 14014
15797 14003
15910 14051
15952 14124
15952 14258
15926 14379
15979 14409
14946 14644
15402 14987
15362 14907
15738 14992
December 1998 15724 15037
15710 15144
15589 14879
15816 14961
16057 15008
15768 14876
15782 14829
15739 14766
15595 14759
15754 14930
15796 14986
15926 14984
December 1999 16074 15170
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average-Annual-Total-Return Cumulative Total Return
Since Since
Periods Ending December 31, 1999 1 Year 5 Year Inception 5 Year Inception
<S> <C> <C> <C> <C> <C>
Lehman Brothers Aggregate Bond Index* -0.83% 7.73% 6.21% 45.11% 51.70%
Strategic Bond Trust 2.22% 9.46% 7.16% 57.16% 60.74%
</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 1999, the Strategic Bond Trust returned 2.22%, outperforming
the -0.83% return of the Lehman Brothers Aggregate Bond Index.
ENVIRONMENT: The investment grade bond market started off 1999 with strength. It
benefited from stable Treasury rates, declining volatility and a reduction in
liquidity premiums. The performance of high yield bonds and emerging market debt
had a stellar start, as the financial markets shrugged off Brazil's currency
problems. As the year progressed, however, the bond market had a tougher time.
Fears of an overheating economy, mounting fears of inflation and Y2K concerns
worked against the fixed income sector. The mounting inflation concerns forced a
proactive Federal Reserve Board to raise the federal funds rate three times from
4.75% to 5.50% during the year. The Trust outperformed relative to its Index due
to strong performance in emerging market debt, the highest returning bond
sector.
OUTLOOK: The challenge remains for Federal Reserve policymakers to slow the
economy to a more sustainable pace of growth. Because the continued tight labor
market could prove inflationary, a case can be made for another 50 basis points
of Federal Reserve Board tightening during the first part of 2000. Such a
tightening will likely do more to flatten the yield curve than move the overall
bond market to higher levels. If the Fed is successful in offsetting rising
inflation, long-term interest rates should start to decline before year-end 2000
and into 2001.
xxxi
<PAGE> 33
GLOBAL BOND TRUST
(FORMERLY GLOBAL GOVERNMENT BOND TRUST)
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve maximum total return consistent with preservation
& POLICIES: of capital and prudent investment management by investing
primarily in fixed income securities denominated in major
foreign currencies, baskets of foreign currencies (such as
the Euro) and the U.S. dollar.
SUBADVISER: Pacific Investment Management Company
PORTFOLIO MANAGER: Lee R. Thomas III
INCEPTION DATE: March 18, 1988++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
<TABLE>
<CAPTION>
SALOMON BROTHERS WORLD JP MORGAN GLOBAL
GLOBAL BOND TRUST GOVERNMENT BOND INDEX UNHEDGED BOND INDEX
----------------- ---------------------- -------------------
<S> <C> <C> <C>
December 1989 10838.00 10854.00 11056.00
10656.00 10710.00 10892.00
10616.00 10545.00 10774.00
10585.00 10441.00 10708.00
10602.00 10409.00 10667.00
10842.00 10754.00 11008.00
10998.00 10951.00 11207.00
11258.00 11294.00 11537.00
11373.00 11206.00 11447.00
11425.00 11331.00 11554.00
11842.00 11836.00 12011.00
12008.00 12033.00 12222.00
December 1990 12071.00 12152.00 12358.00
12373.00 12456.00 12638.00
12435.00 12460.00 12651.00
12008.00 12007.00 12256.00
12118.00 12192.00 12404.00
12172.00 12176.00 12416.00
11965.00 12049.00 12249.00
12237.00 12306.00 12508.00
12541.00 12545.00 12768.00
13030.00 13036.00 13234.00
13160.00 13172.00 13365.00
13268.00 13378.00 13583.00
December 1991 13985.00 14074.00 14269.00
13703.00 13823.00 13989.00
13703.00 13746.00 13948.00
13572.00 13600.00 13820.00
13615.00 13698.00 13935.00
13982.00 14118.00 14330.00
14315.00 14514.00 14722.00
14590.00 14852.00 15046.00
14519.00 15268.00 15446.00
14567.00 15420.00 15430.00
14383.00 15003.00 15045.00
14074.00 14764.00 14778.00
December 1992 14303.00 14853.00 14917.00
14635.00 15111.00 15171.00
15026.00 15409.00 15415.00
15175.00 15646.00 15652.00
15457.00 15976.00 15937.00
15614.00 16136.00 16038.00
15712.00 16102.00 16051.00
16017.00 16147.00 16057.00
16787.00 16633.00 16532.00
16677.00 16831.00 16708.00
16872.00 16802.00 16699.00
16579.00 16682.00 16577.00
December 1993 17019.00 16823.00 16746.00
17398.00 16960.00 16904.00
16775.00 16849.00 16718.00
16384.00 16826.00 16641.00
16259.00 16846.00 16628.00
15822.00 16698.00 16490.00
15822.00 16938.00 16686.00
15041.00 17074.00 16843.00
15925.00 17014.00 16799.00
15963.00 17136.00 16881.00
16452.00 17411.00 17134.00
16028.00 17172.00 16919.00
December 1994 16041.00 17220.00 16957.00
16169.00 17582.00 17300.00
16542.00 18032.00 17746.00
16967.00 19103.00 18650.00
17384.00 19456.00 18946.00
17845.00 20003.00 19475.00
17845.00 20121.00 19595.00
18171.00 20169.00 19688.00
18252.00 19476.00 19140.00
18584.00 19910.00 19571.00
18836.00 20059.00 19763.00
19297.00 20286.00 19984.00
December 1995 19759.00 20499.00 20232.00
19813.00 20245.00 20023.00
19636.00 20141.00 19907.00
19664.00 20113.00 19877.00
19884.00 20033.00 19804.00
20018.00 20037.00 19824.00
20287.00 20195.00 19996.00
20480.00 20583.00 20364.00
20764.00 20663.00 20450.00
21226.00 20748.00 20562.00
21853.00 21136.00 20969.00
22390.00 21415.00 21269.00
December 1996 22330.00 21241.00 21120.00
21793.00 20674.00 20592.00
21778.00 20519.00 20450.00
21599.00 20363.00 20295.00
21746.00 20184.00 20181.00
21926.00 20733.00 20657.00
22289.00 20980.00 20893.00
22335.00 20816.00 20816.00
22155.00 20804.00 20791.00
22710.00 21247.00 21252.00
22694.00 21689.00 21703.00
22743.00 21357.00 21442.00
December 1997 22988.00 21293.00 21419.00
23298.00 21499.00 21633.00
23396.00 21673.00 21793.00
23445.00 21459.00 21629.00
23584.00 21802.00 21963.00
23602.00 21852.00 22057.00
23278.00 21885.00 22119.00
23278.00 21914.00 22178.00
22917.00 22510.00 22791.00
24107.00 23707.00 23980.00
24413.00 24409.00 24517.00
24161.00 24065.00 24240.00
December 1998 24737.00 24548.00 24696.00
23901.00 24323.00 24494.00
23134.00 23542.00 23676.00
23192.00 23601.00 23735.00
23182.00 23591.00 23728.00
22793.00 23195.00 23310.00
22394.00 22789.00 22921.00
22943.00 23347.00 23425.00
23048.00 23455.00 23486.00
23408.00 23821.00 23824.00
23396.00 23809.00 23795.00
23150.00 23559.00 23512.00
December 1999 21706.00 21653.00 21204.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Average Annual Total Return Since++
Periods Ending December 31, 1999 1 Year 5 Year 10 Year 5 Year 10 Year May 1, 1999
<S> <C> <C> <C> <C> <C> <C>
Salomon Brothers World Government Bond Index* -4.27% 6.42% 8.03% 36.47% 116.53% -0.38%
JP Morgan Global Unhedged Bond Index+ -4.33% 6.86% 7.81% 39.34% 112.04% -0.43%
Global Bond Trust -6.67% 7.55% 8.06% 43.93% 117.06% -2.85%
</TABLE>
+ The JP Morgan Global Unhedged Bond Index was added to more accurately reflect
the investment objective of the Global Bond Trust.
++ Current subadviser assignment became effective May 1, 1999.
* 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 1999, the Global Bond Trust returned -6.67%, underperforming
the -4.33% return of the J.P. Morgan Global Unhedged Bond Index. Pacific
Investment Management Company (PIMCO) assumed management of the Trust, formerly
managed by Oechsle International Advisors, LLC, on May 1, 1999. As a result,
performance for 1999 is attributable to both asset management firms. Under
PIMCO's management, the Global Bond Trust returned -2.85% since May 1, 1999,
underperforming the -0.43% return of the J.P. Morgan Global Unhedged Bond Index
for the same period.
ENVIRONMENT: Interest rates in most developed economies moved higher in response
to accelerating growth and increasing inflationary prospects. Because of lower
relative growth and inflation in Europe, European bonds outperformed their U.S.
counterparts. The Trust's below-index duration aided relative returns as the
global recovery caused interest rates in most countries to rise. Underweighting
in Japan was negative for the Trust because Japanese bonds outperformed. An
overweighting in New Zealand added to returns, as low inflation and the stable
currency supported the market.
OUTLOOK: Central banks around the world are likely to raise interest rates in
response to improving economic conditions. Global growth will continue, led by
the U.S. and resurgent economies in Europe and in non-Japan Asia. Some central
banks will likely tighten further to prevent inflation from accelerating.
However, global inflation is likely to remain benign because of productivity
gains in the U.S. and continued excess capacity in Europe and Asia. Top-tier
emerging market economies, such as Mexico and Poland, will strengthen as they
benefit from better fiscal management and increased exports stemming from more
balanced worldwide growth.
xxxii
<PAGE> 34
TOTAL RETURN TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve maximum total return, consistent with
& POLICIES: preservation of capital and prudent investment management by
investing at least 65% of the portfolio's total assets in a
diversified portfolio of fixed income securities of varying
maturities. The average portfolio duration will normally
vary within a 3- to 6-year time frame based on the
subadviser's forecast for interest rates.
SUBADVISER: Pacific Investment Management Company
PORTFOLIO MANAGER: William H. Gross
INCEPTION DATE: May 1, 1999
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[TOTAL RETURN TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS AGGREGATE BOND
TOTAL RETURN TRUST INDEX
------------------ ------------------------------
<S> <C> <C>
May 1999 9928 9912
June 1999 9896 9880
July 1999 9840 9839
August 1999 9824 9834
September 1999 9928 9948
October 1999 9936 9985
November 1999 9968 9984
December 1999 9896 9936
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Since
Periods Ending December 31, 1999 Inception
<S> <C>
Lehman Brothers Aggregate Bond Index* -0.64%
Total Return Trust -1.04%
</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 its inception on May 1, 1999, the Total Return Trust returned
- -1.04%, underperforming the -0.64% return of the Lehman Brothers Aggregate Bond
Index.
ENVIRONMENT: Interest rates moved higher during the period, capping the worst
year in the bond market since 1994. The Federal Reserve Board raised the federal
funds rate three times for a total of 75 basis points. At the end of 1999 the
federal funds rate was at 5.5%. The Trust's below-index duration, or sensitivity
to interest rate changes, was positive as rates rose. An emphasis on
intermediate maturities was negative, as the yield curve flattened in
anticipation of more Fed tightening. The Trust's overweighting in mortgage
backed bonds was positive, as this sector outperformed Treasuries in the second
half of 1999. Limited emerging market holdings added to returns. Emerging market
bonds benefited from higher commodity prices and positive growth prospects.
OUTLOOK: A correction in any one of several imbalances could modestly slow
growth. These imbalances include a declining savings rate, a tighter labor
market and the trade deficit. The Fed is likely to raise rates once or twice in
the first half of 2000. In anticipation of modestly higher interest rates, the
Trust will target duration slightly below its benchmark. The Trust will continue
to enhance performance with securities that offer additional yield, such as
mortgages. It will also limit holdings of below investment grade bonds until
credit trends improve. The Trust will make modest allocations to top-tier
emerging market bonds to capture attractive yields.
xxxiii
<PAGE> 35
INVESTMENT QUALITY BOND TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To achieve a high level of current income consistent with
& POLICIES: 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 long-term maturities. At least 65% of the portfolio's
assets will be invested in (i) fixed income securities of
U.S. and foreign issuers (payable in U.S. dollars) rated "A"
or better by Moody's or Standard & Poor's (or, if unrated,
of comparable quality), (ii) U.S. government securities and
(iii) cash and cash equivalents. The portfolio may also
invest up to 20% of its assets in domestic and foreign high
yield corporate and government fixed income securities,
commonly known as junk bonds.
SUBADVISER: Wellington Management Company, LLP
PORTFOLIO MANAGER: Thomas L. Pappas
INCEPTION DATE: June 18, 1985++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[INVESTMENT QUALITY BOND TRUST LINE GRAPH]
<TABLE>
<CAPTION>
INVESTMENT QUALITY BOND LEHMAN BROTHERS AGGREGATE
TRUST CUSTOMIZED BENCHMARK BOND INDEX
----------------------- -------------------- -------------------------
<S> <C> <C> <C>
Dec. 89 15014 16279 16267
14638 16085 16049
14686 16137 16090
14104 16148 16096
13938 16000 15942
14291 16473 16421
14522 16738 16691
14645 16969 16893
14278 16742 16641
14128 16881 16759
14060 17095 16933
14346 17463 17296
Dec. 90 14604 17735 17552
14740 17955 17757
15039 18108 17960
15053 18233 18116
15006 18430 18333
15066 18537 18432
15036 18527 18419
15171 18785 18662
15605 19191 19090
16024 19580 19487
16173 19798 19664
16308 19980 19859
Dec-91 16951 20573 20522
16667 20293 20235
16802 20425 20372
16682 20311 20268
16761 20457 20382
17169 20844 20798
17404 21131 21108
17828 21562 21654
17985 21780 21838
18204 22039 22125
17906 21746 21768
17906 21751 21766
Dec. 92 18173 22096 22149
18581 22521 22643
18942 22915 23130
19067 23011 23209
19168 23172 23387
19168 23202 23390
19547 23622 23932
19630 23757 24090
20026 24173 24659
20108 24238 24735
20174 24328 24844
19894 24121 24556
Dec. 93 19993 24251 24676
20257 24578 25083
19762 24151 24521
19184 23554 23869
18978 23366 23659
18960 23363 23600
18926 23312 23543
19272 23776 24059
19307 23804 24073
19012 23455 23681
18960 23433 23645
18908 23382 23605
Dec. 94 19064 23543 23775
19410 24009 24248
19843 24581 24857
19982 24731 25038
20283 25077 25414
21115 26047 26525
21281 26238 26745
21207 26180 26635
21466 26497 27005
21688 26754 27294
22058 27101 27679
22409 27508 28158
Dec. 95 22779 27893 28592
22890 28077 28772
22428 27589 28136
22243 27396 27900
22051 27242 27696
21992 27188 27649
22267 27552 28030
22326 27626 28092
22286 27579 28016
22699 28059 28546
23151 28682 29248
23603 29173 29815
Dec. 96 23367 28901 29458
23426 28991 29496
23485 29063 29578
23190 28741 29191
23574 29172 29623
23785 29449 29919
24102 29799 30299
24864 30604 31284
24568 30344 30896
24969 30793 31400
25265 31240 31871
25392 31383 32043
Dec. 97 25646 31700 32382
26090 32106 32820
26048 32080 32770
26132 32189 32878
26251 32357 33056
26519 32664 33423
26721 32942 33737
26788 33011 33747
27021 33549 34264
27795 34334 35281
27571 34152 34949
27772 34347 35285
Dec. 98 27884 34450 35377
28085 34694 35656
27436 34087 34808
27661 34275 34999
27785 34384 35090
27433 34082 34701
27315 33973 34576
27197 33830 34455
27102 33813 34413
27362 34205 34740
27387 34332 34848
27458 34328 34844
Dec. 99 18240 20986 21291
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since++
Periods Ending December 31, 1999 1 Year 5 Year 10 Year Apr 23, 1991 5 Year 10 Year
<S> <C> <C> <C> <C> <C> <C>
Customized Benchmark+* -2.09% 7.81% 7.85% 7.62% 45.65% 112.91%
Lehman Brothers Aggregate Bond Index -0.83% 7.73% 7.69% 7.38% 45.11% 109.86%
Investment Quality Bond Trust -1.79% 7.51% 6.19% 7.08% 43.65% 82.40%
</TABLE>
+ 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.
++ Current subadviser assignment became effective April 23, 1991.
* 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 1999, the Investment Quality Bond Trust returned -1.79%,
outperforming the -2.09% return of the blended 50% Lehman Brothers Government
Bond Index/50% Lehman Brothers Corporate Bond Index.
ENVIRONMENT: Bonds had their worst year since 1994. Nearly every bond category
suffered, as interest rates rose throughout 1999. Treasury securities were among
the hardest hit. The 30-year Treasury bond dropped an astounding 15%. Long-term
Treasuries, those maturing in 10 years or more, shed over 8%. Intermediate-term
Treasuries, those maturing in five to seven years, were down more than 2%.
Investment grade corporate bonds were off slightly for the year, while mortgage
backed and high yield bonds finished in positive territory. Concerned about an
overheating economy, the Federal Reserve Board raised interest rates three
times.
OUTLOOK: As yields on long-term Treasury securities move above 6.5%, value in
the bond market increases, especially relative to equities. However, with
substantial Fed tightening ahead and powerful momentum in the economy, interest
rates will need to move higher to slow the economy and prevent a potential
increase in inflation. With elevated growth expectations and a fearless Fed,
sentiment is bound to reverse course. By the end of 2000, there may be signs
that the domestic economy is slowing. Such an environment would create a good
selling opportunity for corporate and mortgage securities. For now, however,
given the strength of the economy and little risk of mortgage prepayments, the
Trust will maintain its overweighted position in corporate and mortgage
securities while holding fewer Treasuries.
xxxiv
<PAGE> 36
DIVERSIFIED BOND TRUST
(FORMERLY CONSERVATIVE ASSET ALLOCATION TRUST)
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve as high a total return as is consistent with the
POLICIES: conservation of capital by investing primarily in fixed
income securities, including up to 20% in non investment
grade, fixed income securities.
SUBADVISER: Capital Guardian Trust Company
PORTFOLIO MANAGER: James S. Baker, James R. Mulally and John W. Ressner
INCEPTION DATE: August 3, 1989++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[LINE GRAPH]
<TABLE>
<CAPTION>
90 DAY T-BILL LEHMAN BROTHERS SALOMON BROTHERS
DIVERSIFIED BOND ------------- AGGREGATE BOND CUSTOMIZED BROAD INVESTMENT
TRUST INDEX BENCHMARK GRADE BOND INDEX
---------------- --------------- ---------- ----------------
<S> <C> <C> <C> <C> <C>
Dec. 1989 10110 10337 10270 10301 10258
8700 10406 10148 10087 10141
9780 10469 10180 10115 10160
9620 10539 10187 10133 10180
9447 10606 10094 10041 10089
9834 10684 10392 10449 10377
9905 10755 10560 10535 10547
9905 10831 10705 10614 10697
9468 10903 10562 10309 10558
8285 10975 10650 10184 10650
9234 11041 10785 10316 10784
9495 11108 11017 10553 11015
Dec. 1990 9722 11187 11189 10730 11190
9938 11254 11327 10934 11325
10251 11310 11424 11223 11400
10322 11378 11502 11314 11484
10409 11437 11627 11402 11623
10431 11492 11694 11547 11690
10311 11545 11688 11412 11691
10528 11600 11851 11640 11854
10778 11658 12107 11833 12103
10887 11714 12352 11974 12356
11061 11772 12490 12107 12482
11104 11829 12604 12057 12600
Dec. 1991 11550 11882 12979 12546 12976
11409 11922 12802 12453 12810
11506 11958 12885 12515 12894
11398 11996 12813 12387 12825
11537 12044 12906 12480 12923
11710 12083 13149 12665 13159
11790 12122 13331 12682 13346
12124 12168 13603 12909 13610
12135 12201 13740 12969 13761
12273 12243 13904 13076 13922
12181 12232 13719 12984 13741
12273 12224 13722 13097 13747
Dec. 1992 12400 12230 13940 13253 13961
12572 12266 14207 13423 14243
12745 12293 14456 13579 14486
12848 12327 14517 13746 14542
12855 12357 14618 13792 14657
12915 12387 14637 13911 14666
13095 12419 14902 14048 14944
13143 12452 14987 14122 15030
13395 12485 15250 14402 15287
13407 12519 15291 14420 15338
13503 12551 15347 14527 15386
13407 12583 15217 14364 15257
Dec. 1993 13515 12622 15299 14517 15342
13755 12658 15506 14779 15549
13515 12680 15236 14589 15291
13179 12717 14859 14256 14912
13151 12750 14741 14266 14800
13180 12791 14739 14300 14799
13087 12843 14707 14233 14768
13344 12892 14999 14480 15048
13446 12938 15017 14646 15065
13267 12987 14797 14473 14848
13344 13042 14783 14553 14833
13177 13091 14751 14410 14793
Dec. 1994 13267 13159 14853 14522 14905
13408 13225 15147 14719 15214
13677 13289 15507 15027 15570
13844 13357 15602 15218 15660
14056 13423 15820 15448 15875
14448 13493 16432 15863 16505
14597 13563 16552 16029 16621
14772 13628 16516 16213 16587
14881 13695 16716 16332 16778
15070 13756 16878 16570 16936
15110 13820 17097 16642 17163
15361 13882 17354 16949 17430
Dec. 1995 15664 13961 17597 17182 17671
15827 14024 17713 17354 17791
15732 14080 17405 17284 17489
15719 14136 17283 17297 17363
15744 14197 17186 17378 17234
16801 14260 17152 17459 17224
15917 14322 17381 17572 17446
16787 14385 17428 17400 17493
16859 14452 17399 17519 17469
16219 14520 17702 17902 17773
16478 14585 18094 18162 18173
16896 14648 18404 18613 18472
Dec. 1996 16766 14713 18233 18494 18310
16954 14780 18289 18709 18381
16997 14838 18335 18765 18401
16766 14900 18131 18518 18216
17055 14973 18403 18846 18476
17431 15053 18578 19289 18650
17746 15107 18799 19652 18872
18287 15187 19307 20262 19383
18002 15257 19143 19971 19216
18430 15327 19426 20434 19499
18398 15393 19708 20389 19780
18557 15459 19798 20582 19873
Dec. 1997 18684 15525 19998 20793 20075
18890 15600 20254 21021 20334
19239 15658 20238 21406 20320
19556 15731 20307 21715 20399
19683 15802 20413 21856 20505
19701 15873 20607 21863 20702
19911 15941 20782 22142 20872
19911 16012 20825 22104 20916
19194 16085 21165 21484 21236
19648 16170 21660 22012 21737
19928 16233 21545 22418 21639
20295 16289 21668 22841 21758
Dec. 1998 20680 16352 21733 23235 21826
20943 16414 21887 23507 21987
20576 16463 21504 23121 21602
20891 16534 21623 23436 21726
21060 16594 21692 23766 21797
20772 16657 21501 23519 21597
20695 16722 21432 23794 21523
20598 16787 21342 23651 21437
20579 16854 21331 23630 21422
20809 16920 21579 23680 21679
20849 16991 21659 24094 21744
20887 17064 21656 24323 21742
Dec. 1999 20601 16581 20986 24045 21098
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Cumulative Total Return
Average Annual Total Return Since++
Periods Ending December 31, 1999 1 Year 5 Year 10 Year 5 Year 10 Year May 1, 1999
<S> <C> <C> <C> <C> <C> <C>
90 Day T-Bill* 4.82% 5.43% 5.19% 30.26% 65.81% 3.30%
Lehman Brothers Aggregate Bond Index -0.83% 7.73% 7.69% 45.11% 109.86% -0.64%
Customized Benchmark+ 6.60% 11.27% 9.17% 70.57% 140.45% 4.21%
Salomon Brothers Broad Investment Grade Bond Index** -0.83% 7.74% 7.75% 45.20% 110.98% -0.70%
Diversified Bond Trust 0.72% 9.44% 7.50% 56.99% 106.01% -1.01%
</TABLE>
+ Customized Benchmark is comprised of 20% of the return of the Wilshire 5000
Index, 5% of the MSCI EAFE Index, 50% of the Lehman Brothers Aggregate Bond
Index, 25% of the 90 Day T-Bill.
** The Salomon Brothers Broad Investment Grade Bond Index was added to more
accurately reflect the investment objective of the Diversified Bond Trust.
++ Current subadviser assignment became effective May 1, 1999.
* 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 1999, the Diversified Bond Trust returned 0.72%, outperforming
the -0.83% return of the Salomon Brothers Broad Investment Grade Bond Index.
Capital Guardian Trust Company (CGTC) assumed management of the Trust, formerly
managed Fidelity Management Trust Company, on May 1, 1999. As a result,
performance for 1999 is attributable to both asset management firms. Under
CGTC's management, the Diversified Bond Trust returned -1.01% since May 1, 1999,
underperforming the -0.70% return of the Salomon Brothers Broad Investment Grade
Bond Index for the same period.
ENVIRONMENT: The U.S. economy continued to show signs of strength in the fourth
quarter. Economic growth for the third quarter of 1999 was revised upward to an
annualized rate of 5.7%, and yields rose across the yield curve. Higher
commodity prices in 1999 also boosted interest rates higher. By the end of the
year, investors had pushed up the rate on the 30-year Treasury bond to 6.48%.
The 6.48% yield is the highest it has been in over two years. While interest
rates reacted to a continuation of strong growth in the United States, there
were few signs of incipient inflation.
OUTLOOK: How high will rates need to rise in order to slow what the Federal
Reserve Board believes is, or will soon be, excessive growth? That is the big
questions facing investors. Some market participants wonder if the "new economy"
can be slowed by higher interest rates, as the technology-related segment of the
economy has so far been resistant to higher rates. Interest rates have already
risen substantially, and there is a small chance that synchronized global growth
will force rates much higher. However, the worst may be behind us, and rates may
peak in 2000. When that occurs, the Trust will lengthen its duration. The Trust
will continue to underweight Treasury securities and overweight other sectors of
the market.
xxxv
<PAGE> 37
U.S. GOVERNMENT SECURITIES TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE To provide a high level of current income consistent with
& POLICIES: the preservation of capital and maintenance of liquidity by
investing primarily 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: Roger Lavan
INCEPTION DATE: March 18, 1988++
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDEX
[LINE GRAPH]
<TABLE>
<CAPTION>
SALOMON BROTHERS 1-10 YEAR
U.S. GOVERNMENT SECURITIES TRUST TREASURY INDEX
-------------------------------- --------------------------
<S> <C> <C>
Dec. 1989 10947.00 11654.00
10847.00 11594.00
10887.00 11640.00
10907.00 11663.00
10847.00 11631.00
11098.00 11876.00
11239.00 12043.00
11409.00 12228.00
11369.00 12177.00
11460.00 12301.00
11570.00 12458.00
11741.00 12659.00
Dec. 1990 11892.00 12836.00
12023.00 12972.00
12073.00 13059.00
12123.00 13144.00
12228.00 13294.00
12302.00 13375.00
12302.00 13398.00
12460.00 13550.00
12724.00 13810.00
12925.00 14057.00
13072.00 14195.00
13231.00 14367.00
Dec. 1991 13558.00 14682.00
13336.00 14570.00
13389.00 14611.00
13283.00 14561.00
13437.00 14700.00
13647.00 14916.00
13879.00 15130.00
14166.00 15402.00
14320.00 15558.00
14519.00 15760.00
14298.00 15568.00
14221.00 15511.00
Dec. 1992 14397.00 15696.00
14640.00 15991.00
14850.00 16216.00
14916.00 16283.00
15015.00 16415.00
14969.00 16377.00
15210.00 16604.00
15233.00 16642.00
15429.00 16879.00
15486.00 16959.00
15509.00 16988.00
15429.00 16917.00
Dec. 1993 15498.00 16991.00
15647.00 17157.00
15440.00 16955.00
15256.00 16690.00
15232.00 16579.00
15256.00 16591.00
15219.00 16599.00
15389.00 16827.00
15462.00 16873.00
15280.00 16735.00
15244.00 16725.00
15207.00 16671.00
Dec. 1994 15304.00 16729.00
15571.00 17016.00
15898.00 17358.00
15994.00 17456.00
16172.00 17662.00
16755.00 18173.00
16859.00 18271.00
16820.00 18298.00
16975.00 18467.00
17092.00 18586.00
17286.00 18777.00
17493.00 19009.00
Dec. 1995 17688.00 19172.00
17804.00 19330.00
17519.00 19159.00
17416.00 19079.00
17352.00 18990.00
17283.00 18982.00
17475.00 19197.00
17530.00 19260.00
17544.00 19270.00
17818.00 19547.00
18148.00 19899.00
18422.00 20131.00
Dec. 1996 18285.00 20038.00
18381.00 20147.00
18450.00 20182.00
18313.00 20102.00
18557.00 20325.00
18689.00 20487.00
18865.00 20673.00
19232.00 21048.00
19144.00 20974.00
19379.00 21204.00
19600.00 21424.00
19644.00 21463.00
Dec. 1997 19835.00 21660.00
20070.00 21934.00
20085.00 21917.00
20143.00 22036.00
20256.00 22121.00
20395.00 22293.00
20503.00 22428.00
20580.00 22518.00
20858.00 22821.00
21274.00 23252.00
21166.00 23279.00
21197.00 23285.00
Dec. 1998 21321.00 23381.00
21413.00 23489.00
21181.00 23148.00
21321.00 23303.00
21385.00 23368.00
21208.00 23219.00
21159.00 23261.00
21015.00 23284.00
21015.00 23328.00
21320.00 23512.00
21401.00 23543.00
21369.00 23557.00
Dec. 1999 19432.00 19874.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since++
Periods Ending December 31, 1999 1 Year 5 Year 10 Year Dec. 13, 1991 5 Year 10 Year
<S> <C> <C> <C> <C> <C> <C>
Salomon Brothers 1-10 Year Treasury Index* 0.51% 6.95% 7.11% 6.24% 39.91% 98.74%
U.S. Government Securities Trust -0.23% 6.81% 6.87% 5.93% 38.99% 94.32%
</TABLE>
++ Current subadviser assignment became effective December 13, 1991.
* 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 1999, the U.S. Government Securities Trust returned -0.23%,
underperforming the 0.51% return of the Salomon Brothers 1-10 Year Treasury
Index.
ENVIRONMENT: Entering 1999, the global economy appeared to be very weak with
recessions in the greater part of Asia and Latin America. Brazil's currency
devaluation in early January, however, marked the end to many global growth
problems and improved growth in Europe. This global recovery led to inflationary
concerns in the United States, as the government issued $30 billion in new
Treasury offerings. The Government's Treasury issuance resulted in low prices
and a poor auction. Because of a strong equity market, inflation fears and three
Federal Reserve Board interest rate hikes, the fixed income market did not
improve. Y2K concerns led to a decline in fixed income issuance and poor
liquidity. Lack of bond issuance and liquidity were a further drag on the fixed
income sector.
OUTLOOK: The challenge remains for Federal Reserve policymakers to slow the
economy to a more sustainable pace. Because the continued tight labor market
could result in higher inflation, a case can be made for another 50 basis points
of Federal Reserve Board tightening during the first part of 2000. Such a
tightening will likely do more to flatten the yield curve than move the overall
bond market to higher levels. If the Fed is successful in offsetting rising
inflation, then long-term interest rates should start to decline before year-end
2000 and into 2001.
xxxvi
<PAGE> 38
LIFESTYLE AGGRESSIVE 1000 TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing 100% of
POLICIES: the portfolio's assets in other portfolios of the Trust
("underlying portfolios") that invest primarily in equity
securities. Current income is not a consideration.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Management Team
INCEPTION DATE: January 7, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[LIFESTYLE AGGRESSIVE 1000 TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
LIFESTYLE AGGRESSIVE 1000 LIFESTYLE AGGRESSIVE BLENDED
TRUST RUSSELL 2000 INDEX INDEX
------------------------- ------------------ ---------------------------
<S> <C> <C> <C>
December 1996 10000.00 10000.00
10112.00 10200.00 10200.00
9920.00 9952.00 9952.00
March 1997 9568.00 9483.00 9842.00
9637.00 9509.00 9509.00
10302.00 10567.00 10566.00
June 1997 10738.00 11020.00 11020.00
11321.00 11533.00 11532.00
10886.00 11797.00 11796.00
September 1997 11543.00 12660.00 12660.00
10968.00 12104.00 12104.00
10960.00 12026.00 12025.00
December 1997 11089.00 12236.00 12236.00
10990.00 12043.00 12042.00
11690.00 12933.00 12932.00
March 1998 12209.00 13465.00 13465.00
12286.00 13540.00 13539.00
11852.00 12810.00 12809.00
June 1998 12034.00 12837.00 12836.00
11402.00 11798.00 11798.00
9522.00 9507.00 9507.00
September 1998 9894.00 12051.00 10251.00
10345.00 10670.00 10669.00
10925.00 11229.00 11228.00
December 1998 11628.00 11924.00 11923.00
11733.00 12083.00 12082.00
11029.00 11104.00 11103.00
March 1999 11385.00 11277.00 11277.00
11625.00 12288.00 12287.00
11371.00 12467.00 12025.00
June 1999 11944.00 13030.00 12575.00
11835.00 12673.00 12445.00
11635.00 12205.00 12288.00
September 1999 11480.00 12207.00 12191.00
11880.00 12256.00 12688.00
12298.00 12987.00 13168.00
December 1999 13326.00 14459.00 14273.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
Russell 2000 Index* 21.26% 13.08% 44.59%
Lifestyle Aggressive Blended Index+** 19.70% 12.59% 42.73%
Lifestyle Aggressive 1000 Trust 14.61% 10.11% 33.26%
</TABLE>
+ The Lifestyle Aggressive Blended Index is a blend of returns of the previous
benchmark, the Russell 2000 Index since inception and the new blended
benchmark (41% Russell 1000 Index, 27% Russell 2000 Index, and 32% MSCI EAFE
Index) since May 1, 1999.
** The Lifestyle Aggressive Blended Index was added to more accurately reflect
the investment objective of the Lifestyle Aggressive 1000 Trust.
* 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 1999, the Lifestyle Aggressive 1000 Trust returned 14.61%,
underperforming the 19.70% return of the Blended Index. Because the Trust's
policy weights and manager allocations were changed on May 1, 1999, the Trust's
1999 performance is comprised of two different portfolio weightings.
ENVIRONMENT: The tame and steady returns generated by the broad diversification
of the Lifestyle Aggressive 1000 Trust were not indicative of the many twists
and turns in the domestic and international equity markets during 1999. During
the first quarter, large cap growth stocks dominated the market. Both small cap
and value stocks underperformed. Japan and the emerging markets rebounded. In
the second quarter, value stocks recovered from their lows. The emerging markets
continued to advance. Performance in European markets lagged that of other
overseas markets. By mid year, investors began to favor a variety of investment
styles, and all investment styles reached double-digit levels. The market gave
up these gains, however, in the third quarter, as the Federal Reserve Board
raised interest rates. International stocks were the exception, producing solid
third-quarter gains. Growth stocks rallied in the fourth quarter, with small and
mid cap stocks making the strongest advances. Technology stocks were leaders.
Therefore, value investors were left behind. International stocks fared well.
Emerging market stocks took the lead, and European stocks kept pace with Asian
stocks. For 1999, mid cap growth stocks produced the highest returns. The
Russell Mid Cap Growth Index rose 51.29%. Small cap stocks outperformed larger
stocks. The Russell 2000 Index, a measure of small cap stock performance,
returned 21.26%. In comparison, the large cap S&P 500 Index returned 21.04%.
Within the small cap arena, however, value stocks declined 1.49%. In the
international area, the MSCI EAFE Index, which measures the performance of
overseas stocks, rose 27.30%. In May 1999, the portfolios were redesigned using
new asset allocation methods and a new State Street Global Advisors-developed
manager allocation strategy. These changes led to good performance in the second
half of the year. Going forward, these new allocations should provide more
robust performance and should rely less on the performance of a particular asset
class.
OUTLOOK: In 2000, U.S. economic growth should be good. While strong economic
growth could lead to near-term interest rate hikes, it could also have a
positive effect on corporate earnings. In some sectors, the U.S. stock market is
challenged by high valuations, however, fundamentals appear to be good. Overseas
markets are more attractively valued and should benefit from a synchronized
global economic recovery. Unless there is an unexpected market shock, it is
reasonable to believe that returns should approach historical norms.
xxxvii
<PAGE> 39
LIFESTYLE GROWTH 820 TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To achieve long-term growth of capital by investing
POLICIES: approximately 20% of the portfolio's assets in underlying
portfolios that invest primarily in fixed income securities
and approximately 80% of its assets in underlying portfolios
that invest primarily in equity securities. Current income
is also a consideration.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Management Team
INCEPTION DATE: January 7, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[LIFESTYLE GROWTH 820 TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
S&P 500 INDEX LEHMAN BROTHERS
LIFESTYLE GROWTH ------------- GOV'T/CORP BOND CUSTOM LIFESTYLE GROWTH
820 TRUST INDEX BENCHMARK BLENDED INDEX
---------------- --------------- --------- ----------------
<S> <C> <C> <C> <C> <C>
December 1996 10000.00 10000.00 10000.00 10000.00
10144.00 10621.00 10012.00 10226.00 10230.00
10104.00 10707.00 10033.00 10180.00 10184.00
March 1997 9824.00 10262.00 9914.00 9846.00 9857.00
9967.00 10874.00 10058.00 10044.00 10051.00
10517.00 11542.00 10152.00 10717.00 10724.00
June 1997 10894.00 12057.00 10274.00 11105.00 11108.00
11420.00 13014.00 10588.00 11683.00 11670.00
11132.00 12290.00 10470.00 11550.00 11547.00
September 1997 11641.00 12964.00 10634.00 12150.00 12138.00
11173.00 12531.00 10804.00 11737.00 11717.00
11247.00 13111.00 10861.00 11865.00 11839.00
December 1997 11384.00 13336.00 10975.00 12057.00 12027.00
11367.00 13484.00 11130.00 12066.00 12034.00
11971.00 14457.00 11107.00 12753.00 12722.00
March 1998 12401.00 15197.00 11142.00 13210.00 13177.00
12467.00 15350.00 11198.00 13285.00 13252.00
12188.00 15086.00 11317.00 12937.00 12898.00
June 1998 12293.00 15699.00 11433.00 13073.00 13026.00
11901.00 15532.00 11442.00 12610.00 12570.00
10302.00 13286.00 11665.00 10928.00 10886.00
September 1998 10615.00 14137.00 11999.00 11480.00 11429.00
11102.00 15287.00 11914.00 12085.00 12041.00
11641.00 16214.00 11985.00 12608.00 12552.00
December 1998 12090.00 17148.00 12014.00 13208.00 13152.00
12134.00 17865.00 12099.00 13304.00 13244.00
11677.00 17309.00 11811.00 12706.00 12667.00
March 1999 12010.00 18002.00 11870.00 13004.00 12969.00
12456.00 18698.00 11900.00 13755.00 13719.00
12281.00 18257.00 11777.00 13712.00 13460.00
June 1999 12777.00 19270.00 11741.00 14259.00 13964.00
12668.00 18669.00 11708.00 14071.00 13805.00
12512.00 18576.00 11699.00 13830.00 13677.00
September 1999 12392.00 18067.00 11804.00 13686.00 13574.00
12751.00 19210.00 11835.00 14081.00 14082.00
12165.00 19600.00 11828.00 14602.00 14483.00
December 1999 14093.00 20757.00 11756.00 15691.00 15393.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
S&P 500 Index* 21.04% 27.56% 107.57%
Lehman Brothers Government/Corporate Bond Index -2.15% 5.54% 17.56%
Custom Benchmark+ 18.81% 16.20% 56.91%
Lifestyle Growth Blended Index++** 17.04% 15.46% 53.93%
Lifestyle Growth 820 Trust 16.56% 12.20% 40.93%
</TABLE>
+ Custom Benchmark is comprised of 20% of the return of the Russell 1000 Index,
50% of the Russell 2500 Index, 10% of the MSCI EAFE Index, 15% of the Lehman
Brothers Government/Corporate Bond Index, 5% of the US 30-day T-Bill.
++ The Lifestyle Growth Blended Index is a blend of returns of the previous
benchmark (20% Russell 1000 Index, 50% Russell 2500 Index, 10% MSCI EAFE
Index, 15% Lehman Brothers Government/Corporate Bond Index, 5% U.S. 30-day
T-Bill) since inception and the new blended benchmark (42% Russell 1000
Index, 17% Russell 2000 Index, 21% MSCI EAFE Index, 20% Lehman Brothers IT
Goverment/Corporate Bond Index) since May 1, 1999.
** The Lifestyle Growth Blended Index was added to more accurately reflect the
investment objective of the Lifestyle Growth 820 Trust.
* 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 1999, the Lifestyle Growth 820 Trust returned 16.56%,
underperforming the 17.04% return of the Blended Index. Because the Trust's
policy weights and manager allocations were changed on May 1, 1999, the Trust's
1999 performance is comprised of two different portfolio weightings.
ENVIRONMENT: The steady returns of the Lifestyle Growth 820 Trust belied the
many twists and turns in the domestic and international equity markets during
1999. During the first quarter, large cap growth stocks dominated the market.
Both small cap and value stocks underperformed. Japan and the emerging markets
rebounded. In the second quarter, value stocks recovered. The emerging markets
continued to advance. The performance of European markets lagged that of other
overseas markets. By mid year, investors favored a variety of investment styles,
and all investment styles reached double-digit levels. The market gave up these
gains, however, in the third quarter, as the Federal Reserve Board raised
interest rates. International stocks were the exception, producing solid
third-quarter gains. Growth stocks rallied in the fourth quarter, with small and
mid cap stocks making the strongest advances. Technology stocks were leaders.
Value investors were left behind once again. Overseas, emerging market stocks
took the lead, and European stocks kept pace with Asian stocks. For 1999, the
Russell Mid Cap Growth Index rose 51.29%. Small cap stocks outperformed large
cap stocks. The Russell 2000 Index returned 21.26%. In comparison, the large cap
S&P 500 Index returned 21.04%. Within the small cap arena, value stocks declined
1.49%. In the international area, the MSCI EAFE Index rose 27.30%. Because of
the Fed's interest rate hikes, the fixed income markets were challenged. High
yield bonds produced small gains. The rest of the fixed income market was either
flat or declined. In May 1999, the portfolios were redesigned using new asset
allocation methods and a new State Street Global Advisors-developed manager
allocation strategy. These changes led to good performance in the second half of
the year. Going forward, these new allocations should provide more robust
performance and should rely less on the performance of a particular asset class.
OUTLOOK: In 2000, U.S. economic growth should to be good. While strong economic
growth could lead to interest rate hikes, it could also have a positive effect
on corporate earnings. In some sectors, the U.S. stock market is challenged by
high valuations, however, fundamentals appear to be good. Overseas markets are
more attractively valued and should benefit from a synchronized global economic
recovery. Unless there is an unexpected market shock, it is reasonable to
believe that returns in 2000 should approach historical norms.
xxxviii
<PAGE> 40
LIFESTYLE BALANCED 640 TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To provide a balance between a high level of current income
POLICIES: and growth of capital with a greater emphasis on growth of
capital by investing approximately 40% of the portfolio's
assets in underlying portfolios that invest primarily in
fixed income securities and approximately 60% of its assets
in underlying portfolios that invest primarily in equity
securities.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Management Team
INCEPTION DATE: January 7, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[LIFESTYLE BALANCED 640 TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
S&P 500 INDEX LEHMAN BROTHERS
LIFESTYLE BALANCED ------------- GOVERNMENT/CORPORATE CUSTOM
640 TRUST BOND INDEX BENCHMARK
------------------ -------------------- ---------
<S> <C> <C> <C> <C>
December 1996 10000 10000 10000 10000
10147 10621 10012 10222
10151 10707 10033 10206
March 1997 9907 10262 9914 9922
10099 10874 10058 10144
10528 11542 10152 10653
June 1997 10842 12057 10274 10967
11330 13014 10588 11499
11127 12290 10470 11334
September 1997 11541 12964 10634 11802
11176 12531 10804 11564
11261 13111 10861 11722
December 1997 11411 13336 10975 11896
11397 13484 11130 11946
11887 14457 11107 12455
March 1998 12235 15197 11142 12811
12282 15350 11198 12888
12069 15086 11317 12681
June 1998 12149 15699 11433 12853
11803 15532 11442 12563
10526 13286 11665 11384
September 1998 10890 14137 11999 11904
11271 15287 11914 12375
11723 16214 11985 12808
December 1998 12064 17148 12014 13285
12100 17865 12099 13428
11725 17309 11811 12950
March 1999 12002 18002 11870 13209
12422 18698 11900 13744
12224 18257 11777 13661
June 1999 12545 19270 11741 14068
12403 18669 11708 13892
12337 18576 11699 13733
September 1999 12262 18067 11804 13628
12610 19210 11835 13987
12939 19600 11828 14341
December 1999 13562 20757 11756 15068
<CAPTION>
LIFESTYLE BALANCED
BLENDED INDEX
------------------
<S> <C>
December 1996 10000
10230
10213
March 1997 9944
10159
10666
June 1997 10970
11468
11326
September 1997 11780
11524
11670
December 1997 11835
11881
12392
March 1998 12748
12824
12606
June 1998 12761
12486
11299
September 1998 11803
12292
12700
December 1998 13179
13315
12877
March 1999 13144
13678
13455
June 1999 13841
13715
13634
September 1999 13572
13988
14281
December 1999 14922
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
S&P 500 Index* 21.04% 27.56% 107.57%
Lehman Brothers Government/Corporate Bond Index -2.15% 5.54% 17.56%
Custom Benchmark+ 13.42% 14.65% 50.68%
Lifestyle Balanced Blended Index++** 13.23% 14.27% 49.22%
Lifestyle Balanced 640 Trust 12.42% 10.76% 35.62%
</TABLE>
+ Custom Benchmark is comprised of 25% of the return of the Russell 1000 Index,
30% of the Russell 2500 Index, 5% of the MSCI EAFE Index, 30% of the Lehman
Brothers Government/Corporate Bond Index, 10% of the US 30-day T-Bill.
++ The Lifestyle Balanced Blended Index is a blend of returns of the previous
benchmark (25% Russell 1000 Index, 30% Russell 2500 Index, 5% MSCI EAFE
Index, 30% Lehman Brothers Government/Corporate Bond Index, 10% U.S. 30-day
T-Bill) since inception and the new blended benchmark (35% Russell 1000
Index, 10% Russell 2000 Index, 15% MSCI EAFE Index, 35% Lehman Brothers IT
Government/Corporate Bond Index, and 5% of the 3-month Treasury Bill) since
May 1, 1999.
** The Lifestyle Balanced Blended Index was added to more accurately reflect the
investment objective of the Lifestyle Balanced 640 Trust.
* 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 1999, the Lifestyle Balanced 640 Trust returned 12.42%,
underperforming the 13.23% return of the Blended Index. Because the Trust's
policy weights and manager allocations were changed on May 1, 1999, the Trust's
1999 performance is comprised of two different portfolio weightings.
ENVIRONMENT: Nineteen ninety-nine was a good year for most equity investors but
disappointing for fixed income investors. The Lifestyle Balanced 640 Trust's 60%
allocation to equity and broad diversification produced strong returns this
year. Six of the nine domestic equity styles produced returns near or above the
20% mark. The large cap S&P 500 Index, rose 21.04%. However, value stocks lagged
significantly across all market capitalizations producing low single digit or
negative returns. A brief rally in value stocks in the second quarter was short-
lived and growth stocks took the lead in the second half. The Russell 2000
Index, which measures small cap performance, rose 21.26%, For the second
consecutive year, real estate stocks were poor performers. The NAREIT Index, a
measure of real estate stock performance, declined 6.48%. The MSCI EAFE Index,
which measures foreign stock performance, rose over 27%. The emerging markets
also produced excellent returns, with the IFCI Emerging Composite Index gaining
over 67%. Because the Federal Reserve Board raised interest rates, the fixed
income markets were challenged. As a result, the Lehman Brothers Aggregate Bond
Index declined 0.83%. High yield bonds performed better than high quality bonds,
and the Salomon Brothers High Yield Index rose 1.73%, Emerging market bonds rose
over 21%. In May 1999, the portfolios were redesigned using new asset allocation
methods and a new State Street Global Advisors-developed manager allocation
strategy. These changes led to good performance in the second half of the year.
Going forward, these new allocations should provide more robust performance and
should rely less on the performance of a particular asset class.
OUTLOOK: In 2000, U.S. economic growth should be good. While strong economic
growth could lead to interest rate hikes, it could also have a positive effect
on corporate earnings. In some sectors, the U.S. stock market is challenged by
high valuations, however, fundamentals appear to be good. Overseas markets are
more attractively valued and should benefit from a synchronized global economic
recovery. Unless there is an unexpected market shock, it is reasonable to
believe that returns in 2000 should approach historical norms.
xxxix
<PAGE> 41
LIFESTYLE MODERATE 460 TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To provide a balance between a high level of current income
POLICIES: and growth of capital with a greater emphasis on income by
investing approximately 60% of the Trust's assets in
underlying portfolios that invest primarily in fixed income
securities and approximately 40% of its assets in underlying
portfolios that invest primarily in equity securities.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Management Team
INCEPTION DATE: January 7, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
<TABLE>
<CAPTION>
S&P 500 INDEX LEHMAN BROTHERS
LIFESTYLE MODERATE ------------- GOVERNMENT/CORPORATE CUSTOMIZED
460 TRUST BOND INDEX BENCHMARK
------------------ -------------------- ----------
<S> <C> <C> <C> <C>
December 1996 10000.00 10000.00 10000.00 10000.00
10134.00 10621.00 10012.00 10174.00
10206.00 10707.00 10033.00 10194.00
March 1997 10046.00 10262.00 9914.00 10004.00
10253.00 10874.00 10058.00 10217.00
10548.00 11542.00 10152.00 10554.00
June 1997 10785.00 12057.00 10274.00 10789.00
11182.00 13014.00 10588.00 11209.00
10998.00 12290.00 10470.00 11018.00
September 1997 11285.00 12964.00 10634.00 11346.00
11082.00 12531.00 10804.00 11235.00
11232.00 13111.00 10861.00 11387.00
December 1997 11370.00 13336.00 10975.00 11527.00
11463.00 13484.00 11130.00 11626.00
11819.00 14457.00 11107.00 11959.00
March 1998 12066.00 15197.00 11142.00 12205.00
12123.00 15350.00 11198.00 12281.00
12066.00 15086.00 11317.00 12214.00
June 1998 12142.00 15699.00 11433.00 12389.00
12076.00 15532.00 11442.00 12289.00
11246.00 13286.00 11665.00 11619.00
September 1998 11517.00 14137.00 11999.00 12010.00
11913.00 15287.00 11914.00 12356.00
12264.00 16214.00 11985.00 12676.00
December 1998 12480.00 17148.00 12014.00 13001.00
12502.00 17865.00 12099.00 13157.00
12327.00 17309.00 11811.00 12853.00
March 1999 12574.00 18002.00 11870.00 13066.00
12999.00 18698.00 11900.00 13370.00
12877.00 18257.00 11777.00 13247.00
June 1999 13029.00 19270.00 11741.00 13509.00
12925.00 18669.00 11708.00 13399.00
12820.00 18576.00 11699.00 13338.00
September 1999 12801.00 18067.00 11804.00 13288.00
12943.00 19210.00 11835.00 13591.00
13114.00 19600.00 11828.00 13789.00
December 1999 13466.00 20757.00 11756.00 14192.00
<CAPTION>
LIFESTYLE MODERATE
BLENDED INDEX
------------------
<S> <C>
December 1996 10000.00
10183.00
10202.00
March 1997 10030.00
10234.00
10567.00
June 1997 10792.00
11173.00
11008.00
September 1997 11318.00
11188.00
11328.00
December 1997 11457.00
11552.00
11887.00
March 1998 12133.00
12208.00
12127.00
June 1998 12284.00
12197.00
11517.00
September 1998 11888.00
12256.00
12546.00
December 1998 12876.00
13023.00
12764.00
March 1999 12987.00
13292.00
13130.00
June 1999 13386.00
13306.00
13255.00
September 1999 13255.00
13529.00
13731.00
December 1999 14145.00
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
S&P 500 Index* 21.04% 27.56% 107.57%
Lehman Brothers Government/Corporate Bond Index -2.15% 5.54% 17.56%
Customized Benchmark+ 9.17% 12.38% 41.92%
Lifestyle Moderate Blended Index++** 9.85% 12.25% 41.45%
Lifestyle Moderate 460 Trust 7.89% 10.50% 34.66%
</TABLE>
+ Customized Benchmark is comprised of 25% of the return of the Russell 1000
Index, 10% of the Russell 2500 Index, 5% of the MSCI EAFE Index, 35% of the
Lehman Brothers Government/Corporate Bond Index, 25% of the U.S. 30-day
T-Bill.
++ The Lifestyle Moderate Blended Index is a blend of returns of the previous
benchmark (25% Russell 1000 Index, 10% Russell 2500 Index, 5% MSCI EAFE
Index, 35% Lehman Brothers Government/Corporate Bond Index, 25% U.S. 30-day
T-Bill) since inception and the new blended benchmark (22% Russell 1000
Index, 8% Russell 2000 Index, 10% MSCI EAFE Index, 50% Lehman Brothers IT
Government/Corporate Bond Index, and 10% of the 3-month Treasury Bill) since
May 1, 1999.
** The Lifestyle Moderate Blended Index was added to more accurately reflect the
Investment objective of the Lifestyle Moderate 460 Trust.
* 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 1999, the Lifestyle Moderate 460 Trust returned 7.89%,
underperforming the 9.85% return of the Blended Index. Because the Trust's
policy weights and manager allocations were changed on May 1, 1999, the Trust's
1999 performance is comprised of two different portfolio weightings.
ENVIRONMENT: Nineteen ninety-nine was a disappointing year for fixed income
investors. With 60% of the Lifestyle Moderate 460 Trust's assets in fixed
income, the trust's strong positive returns were welcome. It was a good year for
most equity investors. The Trust's 40% allocation to equity, including a 12%
allocation to international stocks, provided a strong performance boost. The
Federal Reserve Board interest rate hikes were negative for the bond markets.
The Lehman Brothers Aggregate Bond Index declined 0.83%. Longer-term bonds fell
hardest with the Lehman Brothers Long-Term Government/Corporate Index declining
7.64%. Short-term bonds were less effected with the Salomon Brothers 3-month
Treasury Bill Index gaining 4.74%. High yield bonds performed better than higher
quality corporate bonds of similar duration, and the Salomon Brothers High Yield
Index rose 1.73%. Emerging market bonds rose over 21%. In the equity markets,
six of the nine domestic equity styles produced returns near or above the 20%
mark. The S&P 500 Index rose 21.04% while the Russell 2000 Index, which measures
small cap performance, rose 21.26%. Value stocks were laggards across all market
capitalizations. For the second consecutive year, real estate stocks were poor
performers. The NAREIT Index, a measure of real estate stock performance,
declined 6.48%. The MSCI EAFE Index, a measure of international stock
performance rose over 27%. In May 1999, the portfolios were redesigned using new
asset allocation methods and a new State Street Global Advisors-developed
manager allocation strategy. These changes led to good performance in the second
half of the year. Going forward, these new allocations should provide more
robust performance and should rely less on the performance of a particular asset
class.
OUTLOOK: In 2000, U.S. economic growth should be good. While strong economic
growth could lead to interest rate hikes, it could also have a positive effect
on corporate earnings. In some sectors, the U.S. stock market is challenged by
high valuations, however, fundamentals appear to be good. Overseas markets are
more attractively valued and should benefit from a synchronized global economic
recovery. Unless there is an unexpected market shock, it is reasonable to
believe that returns in 2000 should approach historical norms.
xl
<PAGE> 42
LIFESTYLE CONSERVATIVE 280 TRUST
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE & To provide a high level of current income with some
POLICIES: consideration given to growth of capital by investing
approximately 80% of the Trust's assets in underlying
portfolios that invest primarily in fixed income securities
and approximately 20% of its assets in underlying portfolios
that invest primarily in equity securities.
SUBADVISER: Manufacturers Adviser Corporation
PORTFOLIO MANAGERS: Management Team
INCEPTION DATE: January 7, 1997
</TABLE>
CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES
[LIFESTYLE CONSERVATIVE 280 TRUST PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
LIFESTYLE CONSERVATIVE 280 LEHMAN BROTHERS LIFESTYLE CONSERVATIVE
TRUST GOV'T/CORP BOND INDEX BLENDED INDEX
-------------------------- --------------------- ----------------------
<S> <C> <C> <C>
December 1996 10000 10000 10000
10115 10012 10039
10176 10033 10058
March 1997 10071 9914 9989
10236 10058 10107
10422 10152 10190
June 1997 10591 10274 10283
10890 10588 10492
10787 10470 10439
September 1997 10991 10634 10561
10983 10804 10678
11089 10861 10701
December 1997 11215 10975 10787
11299 11130 10928
11494 11107 10919
March 1998 11665 11142 10954
11717 11198 11009
11718 11317 11090
June 1998 11828 11433 11160
11793 11442 11200
11429 11665 11375
September 1998 11766 11999 11661
11948 11914 11649
12158 11985 11648
December 1998 12359 12014 11695
12460 12099 11759
12286 11811 11586
March 1999 12469 11870 11673
12676 11900 11709
12569 11777 11590
June 1999 12617 11741 11713
12559 11708 11676
12530 11699 11675
September 1999 12569 11804 11710
12666 11835 11878
12743 11828 11961
December 1999 12879 11756 12106
</TABLE>
PERFORMANCE TABLE
<TABLE>
<CAPTION>
Average Annual Total Return Cumulative Total Return
Since Since
Periods Ending December 31, 1999 1 Year Inception Inception
<S> <C> <C> <C>
Lehman Brothers Government/Corporate Bond Index -2.15% 5.54% 17.56%
Lifestyle Conservative Blended Index+** 3.52% 6.58% 21.06%
Lifestyle Conservative 280 Trust 4.21% 8.86% 28.79%
</TABLE>
+ The Lifestyle Conservative Blended Index is a blend of returns of the
previous benchmark, the Lehman Brothers Government/Corporate Bond Index since
inception and the new blended benchmark (15% Russell 1000 Index, 5% MSCI EAFE
Index, 65% Lehman Brothers Government/Corporate Bond Index, and 15% of the
3-month Treasury Bill) since May 1, 1999.
** The Lifestyle Conservative Blended Index was added to more accurately reflect
the investment objective of the Lifestyle Conservative 280 Trust.
* 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 1999, the Lifestyle Conservative 280 Trust returned 4.21%,
outperforming the 3.52% return of the Blended Index. Because the Trust's policy
weights and manager allocations were changed on May 1, 1999, the Trust's 1999
performance is comprised of two different portfolio weightings.
ENVIRONMENT: Nineteen ninety-nine was a disappointing year for fixed income
investors. With 80% of the Lifestyle Conservative 280 Trust's assets in fixed
income, the trust's positive returns stood out strongly. It was a good year for
most equity investors. The Trust's 20% allocation to equity provided a strong
tailwind boosting what would otherwise have been weaker returns in line with the
negative returns in the overall fixed income markets. The Federal Reserve Board
interest rate hikes were negative for the bond markets. The Lehman Brothers
Aggregate Bond Index declined 0.83%. Longer-term bonds fell hardest with the
Lehman Brothers Long-Term Government/Corporate Index declining 7.64%. Short-term
bonds were less effected with the Salomon Brothers 3-month Treasury Bill Index
gaining 4.74%. High yield bonds performed better than higher quality corporate
bonds of similar duration, and the Salmon Brothers High Yield Index rose 1.73%.
In the equity markets, six of the nine domestic equity styles produced returns
near or above the 20% mark. The S&P 500 Index rose 21.04% while the Russell 2000
Index, which measures small cap performance, rose 21.26%. Value stocks were
laggards across all market capitalizations. For the second consecutive year,
real estate stocks were poor performers. The NAREIT Index, a measure of real
estate stock performance, declined 6.48%. The MSCI EAFE Index, a measure of
international stock performance rose over 27%. In May 1999, the portfolios were
redesigned using new asset allocation methods and a new State Street Global
Advisors-developed manager allocation strategy. These changes led to good
performance in the second half of the year. Going forward, these new allocations
should provide more robust performance and should rely less on the performance
of a particular asset class.
OUTLOOK: In 2000, U.S. economic growth should be good. While strong economic
growth could lead to interest rate hikes, it could also have a positive effect
on corporate earnings. In some sectors, the U.S. stock market is challenged by
high valuations, however, fundamentals appear to be good. Overseas markets are
more attractively valued and should benefit from a synchronized global economic
recovery. Unless there is an unexpected market shock, it is reasonable to
believe that returns in 2000 should approach historical norms.
xli
<PAGE> 43
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of
Manufacturers Investment Trust:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets present fairly, in all material
respects, the financial position of Pacific Rim Emerging Markets, Science &
Technology, International Small Cap, Aggressive Growth (formerly, Pilgrim
Baxter Growth), Emerging Small Company, Small Company Blend, Mid Cap Growth
(formerly, Small/Mid Cap), Mid Cap Stock, Overseas (formerly, International
Growth and Income), International Stock, International Value, Mid Cap Blend
(formerly, Equity), Small Company Value, Global Equity, Growth, Large Cap
Growth (formerly, Aggressive Asset Allocation), Quantitative Equity, Blue
Chip Growth, Real Estate Securities, Value, Equity Index, Growth & Income,
U.S. Large Cap Value, Equity-Income, Income & Value (formerly, Moderate
Asset Allocation), Balanced, High Yield, Strategic Bond, Global Bond
(formerly, Global Government Bond), Total Return, Investment Quality Bond,
Diversified Bond (formerly, Conservative Asset Allocation), U.S. Government
Securities, Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820,
Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative
280 Trusts (constituting Manufacturers Investment Trust, hereafter referred
to as the "Trust") at December 31, 1999, and the results of their
operations and the changes in their net assets for the periods indicated,
in conformity with accounting principles generally accepted in the United
States. Also, in our opinion, the accompanying financial highlights present
fairly, in all material respects, the financial highlights of Science &
Technology, International Small Cap, Aggressive Growth, Emerging Small
Company, Small Company Blend, Mid Cap Growth, Mid Cap Stock, Overseas,
International Stock, International Value, Mid Cap Blend, Small Company
Value, Global Equity, Growth, Large Cap Growth, Blue Chip Growth, Value,
Equity Index, Growth & Income, U.S. Large Cap Value, Equity-Income, Income
& Value, Balanced, High Yield, Strategic Bond, Global Bond, Total Return,
Investment Quality Bond, Diversified 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, Quantitative Equity and Real Estate Securities Trusts
for the periods ended December 31, 1999, 1998, 1997 and 1996, in conformity
with accounting principles generally accepted in the United States. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management;
our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial statements
in accordance with auditing standards generally accepted in the United
States which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above. The financial highlights for the period ended December 31, 1995 for
Pacific Rim Emerging Markets, Quantitative Equity and Real Estate
Securities Trusts were audited by other independent accountants whose
report dated February 2, 1996 expressed an unqualified opinion on those
financial highlights.
Boston, Massachusetts
February 18, 2000
1
<PAGE> 44
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - December 31, 1999
<TABLE>
<CAPTION>
PACIFIC RIM
EMERGING SCIENCE & INTERNATIONAL AGGRESSIVE
MARKETS TECHNOLOGY SMALL CAP GROWTH
TRUST TRUST TRUST TRUST
----- ----- ----- -----
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $101,392,968 $1,245,808,672 $248,813,192 $167,798,970
Repurchase agreement, at value 8,173,000 13,121,000 -- --
Cash 273 970 419,963 --
Foreign currency, at value 1,780,233 -- 2,967,427 --
Receivables:
Forward foreign currency contracts (Note 8) 76 -- 2,929 --
Investments sold 225,452 -- 2,025,719 380,957
Fund shares sold 367,205 5,646,959 1,110,199 575,428
Dividends and interest 72,477 89,026 40,865 1,548
Foreign tax withholding reclaims 942 300 29,597 --
Other assets 111 1,143 481 97
------------ -------------- ------------ ------------
Total assets 112,012,737 1,264,668,070 255,410,372 168,757,000
------------ -------------- ------------ ------------
LIABILITIES
Payables:
Forward foreign currency contracts (Note 8) 6,867 1,203 31,230 --
Investments purchased -- 2,392,973 13,506,911 --
Fund shares redeemed -- -- -- --
Dividend and interest withholding tax 14,732 7,168 4,938 --
Due to custodian -- -- 1,842,427 23,838
Other payables and accrued expenses 12,514 41,236 64,192 19,363
Due to broker (securities lending) 17,225,619 117,771,425 -- 33,210,858
------------ -------------- ------------ ------------
Total liabilities 17,259,732 120,214,005 15,449,698 33,254,059
============ ============== ============ ============
NET ASSETS $ 94,753,005 $1,144,454,065 $239,960,674 $135,502,941
============ ============== ============ ============
Net assets consist of:
Undistributed net investment income (Note 2) $ 356,425 $ 1,203 $ 9,669 --
Accumulated undistributed net realized gain (loss)
on investments, foreign currency and forward foreign
currency contracts (6,511,816) 37,708,402 62,099,008 $ (726,016)
Unrealized appreciation (depreciation) on:
Investments 21,353,253 361,511,822 66,761,363 40,408,898
Foreign currency and forward foreign currency
contracts 33,038 (1,272) (49,245) --
Capital shares at par value of $.01 (Note 4) 87,056 316,437 85,221 78,167
Additional paid-in capital 79,435,049 744,917,473 111,054,658 95,741,892
------------ -------------- ------------ ------------
NET ASSETS $ 94,753,005 $1,144,454,065 $239,960,674 $135,502,941
============ ============== ============ ============
Capital shares outstanding (Note 4) 8,705,640 31,643,731 8,522,117 7,816,664
------------ -------------- ------------ ------------
Net asset value, offering price and redemption price
per share $ 10.88 $ 36.17 $ 28.16 $ 17.34
============ ============== ============ ============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $ 88,212,715 $ 897,417,850 $182,051,829 $127,390,072
------------ -------------- ------------ ------------
Investments in foreign currency, at identified cost
(Note 2) $ 1,744,585 -- $ 4,186,377 --
============ ============== ============ ============
</TABLE>
<TABLE>
<CAPTION>
EMERGING
SMALL COMPANY
TRUST
-----
<S> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $530,690,476
Repurchase agreement, at value 39,093,000
Cash 304
Foreign currency, at value --
Receivables:
Forward foreign currency contracts (Note 8) --
Investments sold 626,308
Fund shares sold --
Dividends and interest 205,032
Foreign tax withholding reclaims --
Other assets 933
------------
Total assets 570,616,053
------------
LIABILITIES
Payables:
Forward foreign currency contracts (Note 8) --
Investments purchased 274,097
Fund shares redeemed 442,466
Dividend and interest withholding tax --
Due to custodian --
Other payables and accrued expenses 34,216
Due to broker (securities lending) 116,713,326
------------
Total liabilities 117,464,105
============
NET ASSETS $453,151,948
============
Net assets consist of:
Undistributed net investment income (Note 2) --
Accumulated undistributed net realized gain (loss)
on investments, foreign currency and forward foreign
currency contracts $ 54,991,310
Unrealized appreciation (depreciation) on:
Investments 179,344,288
Foreign currency and forward foreign currency
contracts --
Capital shares at par value of $.01 (Note 4) 111,225
Additional paid-in capital 218,705,125
------------
NET ASSETS $453,151,948
============
Capital shares outstanding (Note 4) 11,122,485
------------
Net asset value, offering price and redemption price
per share $ 40.74
============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $390,439,188
------------
Investments in foreign currency, at identified cost
(Note 2) $ --
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE> 45
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - December 31, 1999
<TABLE>
<CAPTION>
SMALL
COMPANY MID CAP MID CAP
BLEND GROWTH STOCK OVERSEAS
TRUST TRUST TRUST TRUST
----- ----- ----- -----
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $48,153,943 $771,607,806 $94,011,436 $412,990,638
Repurchase agreement, at value 5,332,000 -- 8,316,000 23,118,000
Cash 801 331,424 326,700 711
Foreign currency, at value -- -- -- 383,047
Receivables:
Forward foreign currency contracts (Note 8) -- -- -- 6,821
Investments sold -- 257,175 -- 4,588,175
Fund shares sold 22,493 393,032 -- --
Variation margin for open futures contracts
(Note 2) -- -- -- 3,890
Dividends and interest 29,055 84,446 31,311 167,050
Foreign tax withholding reclaims -- 616 -- 226,124
Deferred organizational expense -- -- -- 240
Other assets 35 1,467 189 800
----------- ------------ ----------- ------------
Total assets 53,538,327 772,675,966 102,685,636 441,485,496
----------- ------------ ----------- ------------
LIABILITIES
Payables:
Forward foreign currency contracts (Note 8) -- -- -- 6,684
Investments purchased 16,316 485,881 2,942,822 5,281,288
Fund shares redeemed -- -- 222,089 620,809
Dividend and interest withholding tax 55 -- -- 14,803
Due to custodian -- -- -- --
Other payables and accrued expenses 7,696 55,148 10,550 84,882
Due to broker (securities lending) -- 109,461,135 -- 31,253,763
----------- ------------ ----------- ------------
Total liabilities 24,067 110,002,164 3,175,461 37,262,229
----------- ------------ ----------- ------------
NET ASSETS $53,514,260 $662,673,802 $99,510,175 $404,223,267
=========== ============ =========== ============
Net assets consist of:
Undistributed net investment income (Note 2) -- -- -- $ 3,815,459
Accumulated undistributed net realized gain (loss) on
investments, futures, options, foreign currency
and forward foreign currency contracts $ 541,503 $ 57,769,730 (1,978,783) 32,527,065
Unrealized appreciation (depreciation) on:
Investments 7,936,198 195,492,055 3,606,412 87,962,879
Futures contracts -- -- -- 64,886
Foreign currency and forward foreign currency
contracts -- -- -- (6,397)
Capital shares at par value of $.01 (Note 4) 33,953 266,209 78,955 253,943
Additional paid-in capital 45,002,606 409,145,808 97,803,591 279,605,432
----------- ------------ ----------- ------------
NET ASSETS $53,514,260 $662,673,802 $99,510,175 $404,223,267
=========== ============ =========== ============
Capital shares outstanding (Note 4) 3,395,286 26,620,860 7,895,460 25,394,306
----------- ------------ ----------- ------------
Net asset value, offering price and redemption price
per share $ 15.76 $ 24.89 $ 12.60 $ 15.92
=========== ============ =========== ============
Investments in securities, including repurchase agreements,
at identified cost (Note 2) $45,549,745 $576,115,751 $98,721,024 $348,145,759
----------- ------------ ----------- ------------
Investments in foreign currency, at identified cost (Note 2) -- -- -- $ 55,643
=========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
STOCK
TRUST
-----
<S> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $227,839,724
Repurchase agreement, at value 16,569,000
Cash 764
Foreign currency, at value --
Receivables:
Forward foreign currency contracts (Note 8) --
Investments sold 310,715
Fund shares sold 3,261,058
Variation margin for open futures contracts
(Note 2) --
Dividends and interest 77,719
Foreign tax withholding reclaims 120,530
Deferred organizational expense --
Other assets 794
------------
Total assets 248,180,304
------------
LIABILITIES
Payables:
Forward foreign currency contracts (Note 8) --
Investments purchased 96,756
Fund shares redeemed --
Dividend and interest withholding tax 10,335
Due to custodian 128,472
Other payables and accrued expenses 47,620
Due to broker (securities lending) 16,168,417
------------
Total liabilities 16,451,600
------------
NET ASSETS $231,728,704
============
Net assets consist of:
Undistributed net investment income (Note 2) $ 67,065
Accumulated undistributed net realized gain (loss) on
investments, futures, options, foreign currency
and forward foreign currency contracts (382,067)
Unrealized appreciation (depreciation) on:
Investments 57,289,578
Futures contracts --
Foreign currency and forward foreign currency
contracts (5,014)
Capital shares at par value of $.01 (Note 4) 150,141
Additional paid-in capital 174,609,001
------------
NET ASSETS $231,728,704
============
Capital shares outstanding (Note 4) 15,014,062
------------
Net asset value, offering price and redemption price
per share $ 15.43
============
Investments in securities, including repurchase agreements,
at identified cost (Note 2) $187,119,146
------------
Investments in foreign currency, at identified cost (Note 2) --
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 46
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - December 31, 1999
<TABLE>
<CAPTION>
SMALL
INTERNATIONAL MID CAP COMPANY GLOBAL
VALUE BLEND VALUE EQUITY
TRUST TRUST TRUST TRUST
----- ----- ----- -----
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $ 94,875,337 $1,863,330,497 $ 89,452,340 $846,489,773
Repurchase agreement, at value 6,163,000 89,676,000 1,384,000 50,297,000
Cash -- 699,639 747 99
Foreign currency, at value 254,744 4,286 -- 157
Receivables:
Forward foreign currency contracts (Note 8) -- -- -- 4,052,638
Investments sold -- 3,964,793 92,292 --
Fund shares sold -- -- -- --
Dividends and interest 141,234 902,801 126,361 1,910,340
Foreign tax withholding reclaims 25,766 35,294 -- 479,777
Other assets 181 5,350 468 3,024
------------ -------------- ------------ ------------
Total assets 101,460,262 1,958,618,660 91,056,208 903,232,808
------------ -------------- ------------ ------------
LIABILITIES
Payables:
Forward foreign currency contracts (Note 8) 73 -- -- --
Investments purchased 254,744 6,200,102 338,390 --
Fund shares redeemed 96,937 1,453,670 438,778 2,065,313
Dividend and interest withholding tax 11,879 -- -- 96,226
Due to custodian 110,011 -- -- --
Other payables and accrued expenses 17,030 176,753 29,112 177,096
Due to broker (securities lending) -- 277,560,148 1,082,635 63,166,443
------------ -------------- ------------ ------------
Total liabilities 490,674 285,390,673 1,888,915 65,505,078
------------ -------------- ------------ ------------
NET ASSETS $100,969,588 $1,673,227,987 $ 89,167,293 $837,727,730
============ ============== ============ ============
Net assets consist of:
Undistributed net investment income (Note 2) $ 491,994 $ 5,093,411 $ 125,033 $ 10,121,306
Accumulated undistributed net realized gain (loss)
on investments, futures, foreign currency and
forward foreign currency contracts 303,161 227,527,430 (15,236,903) 75,519,079
Unrealized appreciation (depreciation) on:
Investments 4,332,806 169,511,905 9,878,898 88,586,356
Foreign currency and forward foreign currency
contracts (445) (1,004) -- 4,032,667
Capital shares at par value of $.01 (Note 4) 77,774 763,994 72,647 445,931
Additional paid-in capital 95,764,298 1,270,332,251 94,327,618 659,022,391
------------ -------------- ------------ ------------
NET ASSETS $100,969,588 $1,673,227,987 $ 89,167,293 $837,727,730
============ ============== ============ ============
Capital shares outstanding (Note 4) 7,777,367 76,399,392 7,264,722 44,593,082
------------ -------------- ------------ ------------
Net asset value, offering price and redemption price
per share $ 12.98 $ 21.90 $ 12.27 $ 18.79
============ ============== ============ ============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $ 96,705,531 $1,783,494,592 $ 80,957,442 $808,200,417
------------ -------------- ------------ ------------
Investments in foreign currency, at identified
cost (Note 2) $ 254,744 $ 4,258 -- $ 238
============ ============== ============ ============
</TABLE>
<TABLE>
<CAPTION>
GROWTH
TRUST
-----
<S> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $643,289,065
Repurchase agreement, at value 8,974,000
Cash 172
Foreign currency, at value 3,942
Receivables:
Forward foreign currency contracts (Note 8) --
Investments sold 1,080,576
Fund shares sold 220,263
Dividends and interest 279,425
Foreign tax withholding reclaims 167
Other assets 1,344
------------
Total assets 653,848,954
------------
LIABILITIES
Payables:
Forward foreign currency contracts (Note 8) --
Investments purchased --
Fund shares redeemed --
Dividend and interest withholding tax --
Due to custodian --
Other payables and accrued expenses 42,775
Due to broker (securities lending) 10,858,409
------------
Total liabilities 10,901,184
------------
NET ASSETS $642,947,770
============
Net assets consist of:
Undistributed net investment income (Note 2) --
Accumulated undistributed net realized gain (loss)
on investments, futures, foreign currency and
forward foreign currency contracts $ 75,229,767
Unrealized appreciation (depreciation) on:
Investments 122,143,327
Foreign currency and forward foreign currency
contracts 1,801
Capital shares at par value of $.01 (Note 4) 239,178
Additional paid-in capital 445,333,697
------------
NET ASSETS $642,947,770
============
Capital shares outstanding (Note 4) 23,917,818
------------
Net asset value, offering price and redemption price
per share $ 26.88
============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $530,119,738
------------
Investments in foreign currency, at identified
cost (Note 2) $ 2,130
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 47
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - December 31, 1999
<TABLE>
<CAPTION>
LARGE CAP QUANTITATIVE BLUE CHIP REAL ESTATE
GROWTH EQUITY GROWTH SECURITIES
TRUST TRUST TRUST TRUST
----- ----- ----- -----
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $ 404,008,116 $ 451,746,126 $1,765,066,633 $ 208,330,079
Repurchase agreement, at value 20,076,000 16,717,000 7,403,000 4,572,000
Cash 840 149 2 258
Foreign currency, at value -- -- 255 --
Receivables:
Investments sold 1,874,052 84,903 3,036,762 --
Fund shares sold 387,993 -- -- --
Dividends and interest 296,827 240,632 1,018,263 971,374
Foreign tax withholding reclaims 9,707 -- -- --
Other assets 946 1,095 4,563 --
-------------- -------------- -------------- --------------
Total assets 426,654,481 468,789,905 1,776,529,478 213,873,711
-------------- -------------- -------------- --------------
LIABILITIES
Payables:
Investments purchased 2,477,040 -- 9,064,277 1,584,752
Fund shares redeemed -- 2,744,067 283,527 416,303
Dividend and interest withholding tax 967 1,552 3,192 --
Other payables and accrued expenses 31,036 36,122 147,262 16,047
Due to broker (securities lending) 21,560,181 34,098,803 32,798,153 15,100,586
-------------- -------------- -------------- --------------
Total liabilities 24,069,224 36,880,544 42,296,411 17,117,688
-------------- -------------- -------------- --------------
NET ASSETS $ 402,585,257 $ 431,909,361 $1,734,233,067 $ 196,756,023
============== ============== ============== ==============
Net assets consist of:
Undistributed net investment income (Note 2) $ 1,269,910 $ 1,884,589 $ 796,216 $ 7,827,512
Accumulated undistributed net realized gain (loss)
on investments, foreign currency and forward
foreign currency contracts 70,905,713 59,251,526 79,839,118 (37,383,327)
Unrealized appreciation (depreciation) on:
Investments 61,691,907 52,523,461 509,693,861 (8,327,072)
Foreign currency and forward foreign
currency contracts (509) -- 1 --
Capital shares at par value of $.01 (Note 4) 233,665 153,388 801,273 152,665
Additional paid-in capital 268,484,571 318,096,397 1,143,102,598 234,486,245
-------------- -------------- -------------- --------------
NET ASSETS $ 402,585,257 $ 431,909,361 $1,734,233,067 $ 196,756,023
============== ============== ============== ==============
Capital shares outstanding (Note 4) 23,366,451 15,338,836 80,127,264 15,266,541
-------------- -------------- -------------- --------------
Net asset value, offering price and redemption
price per share $ 17.23 $ 28.16 $ 21.64 $ 12.89
============== ============== ============== ==============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $ 362,392,209 $ 415,939,665 $1,262,775,772 $ 221,229,151
-------------- -------------- -------------- --------------
Investments in foreign currency, at identified
cost (Note 2) -- -- $ 254 --
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
VALUE
TRUST
-----
<S> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $ 143,237,362
Repurchase agreement, at value 9,285,000
Cash 667
Foreign currency, at value --
Receivables:
Investments sold --
Fund shares sold --
Dividends and interest 144,204
Foreign tax withholding reclaims --
Other assets 807
--------------
Total assets 152,668,040
--------------
LIABILITIES
Payables:
Investments purchased --
Fund shares redeemed 204,537
Dividend and interest withholding tax --
Other payables and accrued expenses 24,915
Due to broker (securities lending) 6,159,600
--------------
Total liabilities 6,389,052
--------------
NET ASSETS $ 146,278,988
==============
Net assets consist of:
Undistributed net investment income (Note 2) --
Accumulated undistributed net realized gain (loss)
on investments, foreign currency and forward
foreign currency contracts $ (2,549,745)
Unrealized appreciation (depreciation) on:
Investments (6,621,506)
Foreign currency and forward foreign
currency contracts --
Capital shares at par value of $.01 (Note 4) 110,543
Additional paid-in capital 155,339,696
--------------
NET ASSETS $ 146,278,988
==============
Capital shares outstanding (Note 4) 11,054,314
--------------
Net asset value, offering price and redemption
price per share $ 13.23
==============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $ 159,143,868
--------------
Investments in foreign currency, at identified
cost (Note 2) --
==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 48
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - December 31, 1999
<TABLE>
<CAPTION>
EQUITY GROWTH & U.S. LARGE EQUITY-
INDEX INCOME CAP VALUE INCOME
TRUST TRUST TRUST TRUST
----- ----- ----- -----
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $ 116,005,436 $3,226,586,488 $ 204,364,822 $1,042,608,245
Repurchase agreement, at value 1,909,000 22,357,000 10,143,000 8,010,000
Cash 1,291 242 504 868,623
Foreign currency, at value -- -- -- 578,918
Receivables:
Variation margin for open futures contracts
(Note 2) 6,500 -- -- --
Dividends and interest 99,511 2,678,731 170,077 1,920,951
Foreign tax withholding reclaims -- -- -- --
Other assets 276 9,031 220 3,688
-------------- -------------- -------------- --------------
Total assets 118,022,014 3,251,631,492 214,678,623 1,053,990,425
-------------- -------------- -------------- --------------
LIABILITIES
Payables:
Investments purchased -- -- 3,443,310 12,152,576
Fund shares redeemed 22,021 366,770 494,419 1,308,713
Dividend and interest withholding tax -- -- -- 5,614
Other payables and accrued expenses 17,184 284,195 16,369 121,124
Due to broker (securities lending) 3,207,855 63,760,918 -- 29,142,146
-------------- -------------- -------------- --------------
Total liabilities 3,247,060 64,411,883 3,954,098 42,730,173
-------------- -------------- -------------- --------------
NET ASSETS $ 114,774,954 $3,187,219,609 $ 210,724,525 $1,011,260,252
============== ============== ============== ==============
Net assets consist of:
Undistributed net investment income (Note 2) -- $ 17,382,011 $ 565,664 $ 18,891,147
Accumulated undistributed net realized gain on
investments, futures, foreign currency and
forward foreign currency contracts $ 102,256 182,201,245 1,533,279 100,166,696
Unrealized appreciation (depreciation) on:
Investments 24,232,514 1,104,045,436 5,435,868 97,351,213
Futures contracts 83,600 -- -- --
Foreign currency and forward foreign
currency contracts -- -- -- 462
Capital shares at par value of $.01 (Note 4) 63,311 975,697 164,152 592,983
Additional paid-in capital 90,293,273 1,882,615,220 203,025,562 794,257,751
-------------- -------------- -------------- --------------
NET ASSETS $ 114,774,954 $3,187,219,609 $ 210,724,525 $1,011,260,252
============== ============== ============== ==============
Capital shares outstanding (Note 4) 6,331,060 97,569,671 16,415,185 59,298,343
-------------- -------------- -------------- --------------
Net asset value, offering price and redemption
price per share $ 18.13 $ 32.67 $ 12.84 $ 17.05
============== ============== ============== ==============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $ 93,681,922 $2,144,898,052 $ 209,071,954 $ 953,267,032
-------------- -------------- -------------- --------------
Investments in foreign currency, at identified
cost (Note 2) -- -- -- $ 579,230
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
INCOME &
VALUE
TRUST
-----
<S> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $ 725,632,985
Repurchase agreement, at value 6,949,000
Cash 207
Foreign currency, at value --
Receivables:
Variation margin for open futures contracts
(Note 2) --
Dividends and interest 3,190,124
Foreign tax withholding reclaims 3,669
Other assets 2,083
--------------
Total assets 735,778,068
--------------
LIABILITIES
Payables:
Investments purchased --
Fund shares redeemed 408,899
Dividend and interest withholding tax --
Other payables and accrued expenses 74,532
Due to broker (securities lending) 95,470,694
--------------
Total liabilities 95,954,125
--------------
NET ASSETS $ 639,823,943
==============
Net assets consist of:
Undistributed net investment income (Note 2) $ 15,210,363
Accumulated undistributed net realized gain on
investments, futures, foreign currency and
forward foreign currency contracts 123,326,333
Unrealized appreciation (depreciation) on:
Investments 9,783,856
Futures contracts --
Foreign currency and forward foreign
currency contracts (435)
Capital shares at par value of $.01 (Note 4) 495,559
Additional paid-in capital 491,008,267
--------------
NET ASSETS $ 639,823,943
==============
Capital shares outstanding (Note 4) 49,555,858
--------------
Net asset value, offering price and redemption
price per share $ 12.91
==============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $ 722,798,129
--------------
Investments in foreign currency, at identified
cost (Note 2) --
==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 49
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - December 31, 1999
<TABLE>
<CAPTION>
HIGH STRATEGIC GLOBAL
BALANCED YIELD BOND BOND
TRUST TRUST TRUST TRUST
----- ----- ----- -----
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $ 257,499,917 $ 243,545,525 $ 403,145,413 $ 185,114,908
Repurchase agreement, at value 7,005,000 7,959,000 2,675,000 4,737,000
Cash 58 500 353 598
Foreign currency, at value -- 228,486 -- 1,524,747
Receivables:
Forward foreign currency contracts (Note 8) 93 248,211 606,019 1,864,167
Investments sold 5,917,666 -- 976,625 3,079,499
Fund shares sold -- -- 2,897 --
Variation margin for open futures contracts
(Note 2) -- 415,810 -- --
Dividends and interest 980,773 4,613,656 7,489,454 2,759,511
Interest on swap agreement -- -- -- 87,624
Foreign tax withholding reclaims 8,779 -- -- --
Interest rate swap contracts (Notes 2 and 3) -- -- -- 4,800
Other assets 985 689 1,423 552
------------- ------------- ------------- -------------
Total assets 271,413,271 257,011,877 414,897,184 199,173,406
------------- ------------- ------------- -------------
LIABILITIES
Payables:
Forward foreign currency contracts (Note 8) 14,575 85,734 662,592 2,737,252
Investments purchased 5,657,563 -- 31,563,750 50,250,865
Fund shares redeemed 111,329 412,805 -- 130,083
Variation margin for open futures contracts
(Note 2) -- -- -- 17,609
Dividend and interest withholding tax -- 489 47,335 3,585
Due to custodian 568,144 -- 4,085 --
Other payables and accrued expenses 30,865 27,931 63,274 41,841
Due to broker (securities lending) 6,873,100 15,481,406 14,135,537 --
Written options outstanding, at value: premiums
received $177,945 (Notes 2 and 3) -- -- -- --
Deferred mortgage dollar roll income -- -- 21,938 --
------------- ------------- ------------- -------------
Total liabilities 13,255,576 16,008,365 46,498,511 53,181,235
------------- ------------- ------------- -------------
NET ASSETS $ 258,157,695 $ 241,003,512 $ 368,398,673 $ 145,992,171
============= ============= ============= =============
Net assets consist of:
Undistributed net investment income (Note 2) $ 8,076,392 $ 626,800 $ 32,037,885 $ 4,602,698
Accumulated undistributed net realized gain (loss)
on investments, futures, foreign currency and
forward foreign currency contracts 1,814,604 (2,620,910) (22,036,255) (11,254,668)
Unrealized appreciation (depreciation) on:
Investments 5,858,892 (11,026,859) (18,414,335) (7,304,315)
Futures contracts, written options and swap
agreement -- 173,063 -- 112,136
Foreign currency and forward foreign currency
contracts (5,515) 155,790 (104,150) (964,552)
Capital shares at par value of $.01 (Note 4) 144,877 187,806 330,777 125,833
Additional paid-in capital 242,268,445 253,507,822 376,584,751 160,675,039
------------- ------------- ------------- -------------
NET ASSETS $ 258,157,695 $ 241,003,512 $ 368,398,673 $ 145,992,171
============= ============= ============= =============
Capital shares outstanding (Note 4) 14,487,666 18,780,635 33,077,726 12,583,317
------------- ------------- ------------- -------------
Net asset value, offering price and redemption price
per share $ 17.82 $ 12.83 $ 11.14 $ 11.60
============= ============= ============= =============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $ 258,646,025 $ 262,531,384 $ 424,234,748 $ 197,156,223
------------- ------------- ------------- -------------
Investments in foreign currency, at identified cost
(Note 2) -- $ 232,703 -- $ 1,508,872
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
TOTAL
RETURN
TRUST
-----
<S> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $ 264,804,771
Repurchase agreement, at value 10,939,000
Cash 45,092
Foreign currency, at value 115,387
Receivables:
Forward foreign currency contracts (Note 8) 72,984
Investments sold --
Fund shares sold 872,662
Variation margin for open futures contracts
(Note 2) --
Dividends and interest 1,722,627
Interest on swap agreement --
Foreign tax withholding reclaims --
Interest rate swap contracts (Notes 2 and 3) --
Other assets 488
-------------
Total assets 278,573,011
-------------
LIABILITIES
Payables:
Forward foreign currency contracts (Note 8) 18,552
Investments purchased 38,332,399
Fund shares redeemed --
Variation margin for open futures contracts
(Note 2) 136,688
Dividend and interest withholding tax --
Due to custodian --
Other payables and accrued expenses 22,296
Due to broker (securities lending) --
Written options outstanding, at value: premiums
received $177,945 (Notes 2 and 3) 46,995
Deferred mortgage dollar roll income --
-------------
Total liabilities 38,556,930
-------------
NET ASSETS $ 240,016,081
=============
Net assets consist of:
Undistributed net investment income (Note 2) $ 6,857,699
Accumulated undistributed net realized gain (loss)
on investments, futures, foreign currency and
forward foreign currency contracts (1,271,012)
Unrealized appreciation (depreciation) on:
Investments (6,074,315)
Futures contracts, written options and swap
agreement (874,369)
Foreign currency and forward foreign currency
contracts 54,191
Capital shares at par value of $.01 (Note 4) 194,008
Additional paid-in capital 241,129,879
-------------
NET ASSETS $ 240,016,081
=============
Capital shares outstanding (Note 4) 19,400,775
-------------
Net asset value, offering price and redemption price
per share $ 12.37
=============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $ 281,818,086
-------------
Investments in foreign currency, at identified cost
(Note 2) $ 116,373
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 50
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - December 31, 1999
<TABLE>
<CAPTION>
INVESTMENT U.S.
QUALITY DIVERSIFIED GOVERNMENT MONEY
BOND BOND SECURITIES MARKET
TRUST TRUST TRUST TRUST
----- ----- ----- -----
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $ 332,880,933 $ 259,944,661 $ 466,996,034 $ 935,785,704
Repurchase agreement, at value 1,978,000 8,384,000 62,383,000 149,686,000
Cash 86,560 372 509 54
Receivables:
Fund shares sold -- 93,582 -- --
Dividends and interest 4,706,076 2,738,411 2,378,312 430,917
Foreign tax withholding reclaims 14,656 9,128 -- --
Other assets 1,282 618 1,475 2,334
-------------- -------------- -------------- --------------
Total assets 339,667,507 271,170,772 531,759,330 1,085,905,009
-------------- -------------- -------------- --------------
LIABILITIES
Payables:
Investments purchased -- -- 162,029,473 --
Fund shares redeemed 185,671 -- 6,292,904 965,919
Dividend and interest withholding tax 1,641 -- -- --
Other payables and accrued expenses 66,040 28,530 55,717 80,544
Due to broker (securities lending) 50,820,360 52,273,926 -- --
Deferred mortgage dollar roll income -- -- 112,725 --
-------------- -------------- -------------- --------------
Total liabilities 51,073,712 52,302,456 168,490,819 1,046,463
-------------- -------------- -------------- --------------
NET ASSETS $ 288,593,795 $ 218,868,316 $ 363,268,511 $1,084,858,546
============== ============== ============== ==============
Net assets consist of:
Undistributed net investment income (Note 2) $ 21,087,951 $ 11,144,465 $ 24,191,999 --
Accumulated undistributed net realized gain (loss)
on investments, futures, foreign currency and
forward foreign currency contracts (4,954,251) 14,532,274 (7,101,845) --
Unrealized appreciation (depreciation) on:
Investments (18,220,563) (7,920,630) (14,147,361) --
Foreign currency and forward foreign
currency contracts -- (60) -- --
Capital shares at par value of $.01 (Note 4) 248,828 202,308 274,272 $ 1,084,859
Additional paid-in capital 290,431,830 200,909,959 360,051,446 1,083,773,687
-------------- -------------- -------------- --------------
NET ASSETS $ 288,593,795 $ 218,868,316 $ 363,268,511 $1,084,858,546
============== ============== ============== ==============
Capital shares outstanding (Note 4) 24,882,775 20,230,760 27,427,177 108,485,840
-------------- -------------- -------------- --------------
Net asset value, offering price and redemption
price per share $ 11.60 $ 10.82 $ 13.24 $ 10.00
============== ============== ============== ==============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $ 353,079,496 $ 276,249,291 $ 543,526,395 $1,085,471,704
-------------- -------------- -------------- --------------
Investments in foreign currency, at identified
cost (Note 2) -- -- -- --
============== ============== ============== ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE> 51
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - December 31, 1999
<TABLE>
<CAPTION>
LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE
AGGRESSIVE GROWTH BALANCED MODERATE CONSERVATIVE
1000 820 640 460 280
TRUST TRUST TRUST TRUST TRUST
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(See accompanying portfolio of investments) $93,070,106 $414,256,334 $416,704,208 $167,499,733 $106,435,028
Cash 2,647 706 1,822 272 86
Receivables:
Investments sold 254,815 1,106,609 1,401,592 468,180 116,317
Fund shares sold -- -- -- -- 22,552
Dividends and interest -- -- -- -- 2,699
From adviser 6,647 52,081 29,082 2,886 3,358
Other assets 234 1,140 1,188 504 291
----------- ------------ ------------ ------------ ------------
Total assets 93,334,449 415,416,870 418,137,892 167,971,575 106,580,331
----------- ------------ ------------ ------------ ------------
LIABILITIES
Payables:
Investments purchased 67,333 519,504 262,333 56,552 141,569
Fund shares redeemed 187,483 587,105 1,139,257 411,626 --
Other payables and accrued expenses 6,881 53,221 30,270 3,390 3,649
----------- ------------ ------------ ------------ ------------
Total liabilities 261,697 1,159,830 1,431,860 471,568 145,218
----------- ------------ ------------ ------------ ------------
NET ASSETS $93,072,752 $414,257,040 $416,706,032 $167,500,007 $106,435,113
=========== ============ ============ ============ ============
Net assets consist of:
Accumulated undistributed net realized gain
(loss) on investments $ (652,976) $ 5,564,892 $ 3,139,483 $ 6,124,820 $ 1,354,593
Unrealized appreciation (depreciation) on
investments 9,402,647 38,181,777 22,592,227 2,783,003 (343,470)
Capital shares at par value of $.01 (Note 4) 64,018 272,845 292,702 118,546 80,945
Additional paid-in capital 84,259,063 370,237,526 390,681,620 158,473,638 105,343,045
----------- ------------ ------------ ------------ ------------
NET ASSETS $93,072,752 $414,257,040 $416,706,032 $167,500,007 $106,435,113
=========== ============ ============ ============ ============
Capital shares outstanding (Note 4) 6,401,848 27,284,537 29,270,163 11,854,619 8,094,546
----------- ------------ ------------ ------------ ------------
Net asset value, offering price and redemption
price per share $ 14.54 $ 15.18 $ 14.24 $ 14.13 $ 13.15
=========== ============ ============ ============ ============
Investments in securities, including repurchase
agreements, at identified cost (Note 2) $83,667,459 $376,074,557 $394,111,981 $164,716,730 $106,778,498
----------- ------------ ------------ ------------ ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE> 52
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
PACIFIC RIM
EMERGING SCIENCE & INTERNATIONAL AGGRESSIVE
MARKETS TECHNOLOGY SMALL CAP GROWTH
TRUST TRUST TRUST TRUST
----- ----- ----- -----
<S> <C> <C> <C> <C>
Investment Income:
Interest (Includes securities lending income
of $73,906 and $51,987 in the International
Small Cap and Aggressive Growth Trusts,
respectively) $ 295,385 $ 3,188,171 $ 498,954 $ 505,317
Dividends 728,342 585,610 1,074,923 59,108
Less: Foreign taxes withheld (68,881) (13,300) (116,532) (131)
------------- ------------- ------------- -------------
Total income 954,846 3,760,481 1,457,345 564,294
------------- ------------- ------------- -------------
Expenses:
Investment adviser fee (Note 6) 404,135 5,474,674 1,657,308 1,025,508
Custodian fee 104,921 143,597 345,180 104,392
Printing and postage fees 5,291 55,275 17,841 9,675
Audit and legal fees 3,631 37,096 11,326 4,874
Registration and filing fees 2,987 12,624 5,992 667
Fund administration fees (Note 6) 2,477 25,331 6,777 4,318
Trustees fees and expenses (Note 7) 896 8,949 3,085 1,420
Miscellaneous 4,131 5,934 21,739 2,248
------------- ------------- ------------- -------------
Total expenses 528,469 5,763,480 2,069,248 1,153,102
------------- ------------- ------------- -------------
Net investment income (loss) 426,377 (2,002,999) (611,903) (588,808)
------------- ------------- ------------- -------------
Realized and unrealized gain on investments, futures,
foreign currency and forward foreign currency
contracts:
Net realized gain (loss) on:
Investment transactions 1,705,214 121,073,536 67,864,657 21,652,907
Futures contracts -- -- -- (913,664)
Foreign currency and forward foreign
currency contracts (77,478) (111,800) (918,053) --
Change in unrealized appreciation (depreciation) on:
Investments 24,461,774 314,096,686 43,457,530 6,872,345
Translation of foreign currency and forward
foreign currency contracts 13,596 (1,470) (48,530) --
------------- ------------- ------------- -------------
Net gain on investments, foreign currency
and forward foreign currency contracts 26,103,106 435,056,952 110,355,604 27,611,588
------------- ------------- ------------- -------------
Net increase in net assets resulting from operations $ 26,529,483 $ 433,053,953 $ 109,743,701 $ 27,022,780
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
EMERGING
SMALL COMPANY
TRUST
-----
<S> <C>
Investment Income:
Interest (Includes securities lending income
of $73,906 and $51,987 in the International
Small Cap and Aggressive Growth Trusts,
respectively) $ 1,338,346
Dividends 963,484
Less: Foreign taxes withheld --
-------------
Total income 2,301,830
-------------
Expenses:
Investment adviser fee (Note 6) 3,143,468
Custodian fee 98,038
Printing and postage fees 35,769
Audit and legal fees 24,911
Registration and filing fees 13,200
Fund administration fees (Note 6) 13,680
Trustees fees and expenses (Note 7) 5,247
Miscellaneous 6,474
-------------
Total expenses 3,340,787
-------------
Net investment income (loss) (1,038,957)
-------------
Realized and unrealized gain on investments, futures,
foreign currency and forward foreign currency
contracts:
Net realized gain (loss) on:
Investment transactions 56,438,943
Futures contracts (174,744)
Foreign currency and forward foreign
currency contracts --
Change in unrealized appreciation (depreciation) on:
Investments 137,960,108
Translation of foreign currency and forward
foreign currency contracts --
-------------
Net gain on investments, foreign currency
and forward foreign currency contracts 194,224,307
-------------
Net increase in net assets resulting from operations $ 193,185,350
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE> 53
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
SMALL COMPANY MID CAP MID CAP
BLEND GROWTH STOCK OVERSEAS
TRUST * TRUST TRUST * TRUST
------- ----- ------- -----
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 94,264 $ 1,640,662 $ 211,336 $ 1,163,604
Dividends 131,241 954,901 196,217 4,916,931
Less: Foreign taxes withheld (219) -- -- (639,006)
------------- ------------- ------------- -------------
Total income 225,286 2,595,563 407,553 5,441,529
------------- ------------- ------------- -------------
Expenses:
Investment adviser fee (Note 6) 200,337 4,393,840 433,859 2,657,549
Custodian fee 43,122 154,600 37,050 632,871
Printing and postage fees 1,623 62,868 1,962 35,275
Audit and legal fees 1,622 38,913 2,498 24,113
Registration and filing fees 614 19,124 1,640 13,902
Fund administration fees (Note 6) 955 23,513 1,654 13,695
Amortization of deferred organization
expenses (Note 2) -- -- -- 9,720
Trustees fees and expenses (Note 7) 346 9,726 416 5,324
Miscellaneous 102 9,232 570 3,604
------------- ------------- ------------- -------------
Total expenses 248,721 4,711,816 479,649 3,396,053
------------- ------------- ------------- -------------
Net investment income (loss) (23,435) (2,116,253) (72,096) 2,045,476
------------- ------------- ------------- -------------
Realized and unrealized gain
on investments, futures, foreign currency
and forward foreign currency contracts:
Net realized gain (loss) on:
Investment transactions 1,585,805 61,094,831 (1,978,783) 33,604,875
Futures and options contracts -- 96,945 -- (39,264)
Foreign currency and forward foreign
currency contracts (2) -- -- 763,055
Change in unrealized appreciation (depreciation) on:
Investments 7,936,198 136,532,659 3,606,412 74,964,607
Futures contracts -- -- -- 64,886
Translation of foreign currency and forward
foreign currency contracts -- -- -- (184,989)
------------- ------------- ------------- -------------
Net gain on investments, foreign currency and
forward foreign currency contracts 9,522,001 197,724,435 1,627,629 109,173,170
------------- ------------- ------------- -------------
Net increase in net assets resulting from operations $ 9,498,566 $ 195,608,182 $ 1,555,533 $ 111,218,646
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
STOCK
TRUST
-----
<S> <C>
Investment Income:
Interest $ 404,628
Dividends 3,697,825
Less: Foreign taxes withheld (459,657)
-------------
Total income 3,642,796
-------------
Expenses:
Investment adviser fee (Note 6) 2,089,623
Custodian fee 334,221
Printing and postage fees 19,156
Audit and legal fees 9,899
Registration and filing fees 576
Fund administration fees (Note 6) 7,808
Amortization of deferred organization
expenses (Note 2) --
Trustees fees and expenses (Note 7) 2,242
Miscellaneous 29,977
-------------
Total expenses 2,493,502
-------------
Net investment income (loss) 1,149,294
-------------
Realized and unrealized gain
on investments, futures, foreign currency
and forward foreign currency contracts:
Net realized gain (loss) on:
Investment transactions 18,675,048
Futures and options contracts --
Foreign currency and forward foreign
currency contracts (200,544)
Change in unrealized appreciation (depreciation) on:
Investments 35,664,027
Futures contracts --
Translation of foreign currency and forward
foreign currency contracts (9,622)
-------------
Net gain on investments, foreign currency and
forward foreign currency contracts 54,128,909
-------------
Net increase in net assets resulting from operations $ 55,278,203
=============
</TABLE>
* For the period May 1, 1999 (commencement of operations) to December 31,1999.
The accompanying notes are an integral part of the financial statements.
11
<PAGE> 54
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
SMALL
INTERNATIONAL MID CAP COMPANY GLOBAL
VALUE BLEND VALUE EQUITY
TRUST * TRUST TRUST TRUST
------- ----- ----- -----
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 219,406 $ 2,967,771 $ 111,865 $ 1,279,046
Dividends 1,057,324 15,674,156 1,328,474 19,571,570
Less: Foreign taxes withheld (91,426) (53,335) -- (1,599,636)
------------- ------------- ------------- -------------
Total income 1,185,304 18,588,592 1,440,339 19,250,980
------------- ------------- ------------- -------------
Expenses:
Investment adviser fee (Note 6) 475,140 12,412,481 1,101,422 7,901,467
Custodian fee 99,538 389,262 155,771 832,297
Printing and postage fees 2,174 216,572 4,450 138,256
Audit and legal fees 2,656 145,347 4,778 254,723
Registration and filing fees 1,656 87,152 4,054 50,165
Fund administration fees (Note 6) 1,762 80,053 4,362 47,363
Trustees fees and expenses (Note 7) 457 32,076 1,123 19,052
Miscellaneous 532 26,435 4,727 27,212
------------- ------------- ------------- -------------
Total expenses 583,915 13,389,378 1,280,687 9,270,535
------------- ------------- ------------- -------------
Net investment income (loss) 601,389 5,199,214 159,652 9,980,445
------------- ------------- ------------- -------------
Realized and unrealized gain on investments,
futures, foreign currency and forward foreign
currency contracts:
Net realized gain (loss) on:
Investment transactions 303,161 234,512,411 1,909,906 77,601,396
Futures contracts -- 915,429 -- --
Foreign currency and forward foreign
currency contracts (109,395) 76,181 -- 183,397
Change in unrealized appreciation (depreciation) on:
Investments 4,332,806 138,462,147 1,506,359 (61,686,373)
Translation of foreign currency and forward
foreign currency contracts (445) (10,400) -- 4,010,954
------------- ------------- ------------- -------------
Net gain on investments, futures, foreign
currency and forward foreign currency
contracts 4,526,127 373,955,768 3,416,265 20,109,374
------------- ------------- ------------- -------------
Net increase in net assets resulting from
operations $ 5,127,516 $ 379,154,982 $ 3,575,917 $ 30,089,819
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
GROWTH
TRUST
-----
<S> <C>
Investment Income:
Interest $ 625,180
Dividends 2,527,693
Less: Foreign taxes withheld (4,458)
-------------
Total income 3,148,415
-------------
Expenses:
Investment adviser fee (Note 6) 3,716,979
Custodian fee 98,079
Printing and postage fees 54,788
Audit and legal fees 34,242
Registration and filing fees 11,498
Fund administration fees (Note 6) 21,881
Trustees fees and expenses (Note 7) 7,998
Miscellaneous 6,526
-------------
Total expenses 3,951,991
-------------
Net investment income (loss) (803,576)
-------------
Realized and unrealized gain on investments,
futures, foreign currency and forward foreign
currency contracts:
Net realized gain (loss) on:
Investment transactions 75,873,948
Futures contracts 178,770
Foreign currency and forward foreign
currency contracts (11,504)
Change in unrealized appreciation (depreciation) on:
Investments 77,260,171
Translation of foreign currency and forward
foreign currency contracts 10,829
-------------
Net gain on investments, futures, foreign
currency and forward foreign currency
contracts 153,312,214
-------------
Net increase in net assets resulting from
operations $ 152,508,638
=============
</TABLE>
* For the period May 1, 1999 (commencement of operations) to December 31,1999.
The accompanying notes are an integral part of the financial statements.
12
<PAGE> 55
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
LARGE CAP QUANTITATIVE BLUE CHIP REAL ESTATE
GROWTH EQUITY GROWTH SECURITIES VALUE
TRUST TRUST TRUST TRUST TRUST
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest $ 1,699,334 $ 1,019,706 $ 2,871,373 $ 126,114 $ 358,663
Dividends 2,586,675 3,576,798 11,335,952 10,498,794 3,363,338
Less: Foreign taxes withheld (59,530) (1,552) (41,650) -- (94)
----------- ----------- ------------ ------------- ----------
Total income 4,226,479 4,594,952 14,165,675 10,624,908 3,721,907
----------- ----------- ------------ ------------- ----------
Expenses:
Investment adviser fee (Note 6) 2,555,311 2,425,280 12,535,949 1,118,824 1,497,638
Custodian fee 187,536 89,165 255,226 55,048 62,341
Printing and postage fees 42,290 43,500 192,833 17,679 23,916
Audit and legal fees 27,558 28,874 122,285 10,681 13,502
Registration and filing fees 9,902 7,486 51,150 2,806 2,595
Fund administration fees (Note 6) 15,893 17,190 73,677 7,207 9,250
Trustees fees and expenses (Note 7) 6,302 6,351 28,787 2,472 3,095
Miscellaneous 7,309 6,125 18,767 18,432 16,069
----------- ----------- ------------ ------------- ----------
Total expenses 2,852,101 2,623,971 13,278,674 1,233,149 1,628,406
----------- ----------- ------------ ------------- ----------
Net investment income 1,374,378 1,970,981 887,001 9,391,759 2,093,501
----------- ----------- ------------ ------------- ----------
Realized and unrealized gain (loss)
on investments, futures, foreign currency
and forward foreign currency contracts:
Net realized gain (loss) on:
Investment transactions 70,613,051 59,551,059 82,668,675 (29,820,928) 2,110,435
Futures contracts 600,561 -- -- -- --
Foreign currency and forward foreign
currency contracts (164,609) -- (15,872) -- --
Change in unrealized appreciation
(depreciation) on:
Investments 4,474,513 11,635,061 181,383,806 6,725,127 2,074,449
Futures contracts (133,291) -- -- -- --
Translation of foreign currency and
forward foreign currency contracts (3,088) -- (62) -- --
----------- ----------- ------------ ------------- ----------
Net gain (loss) on investments,
futures, foreign currency and forward
foreign currency contracts 75,387,137 71,186,120 264,036,547 (23,095,801) 4,184,884
----------- ----------- ------------ ------------- ----------
Net increase (decrease) in net assets
resulting from operations $76,761,515 $73,157,101 $264,923,548 $ (13,704,042) $6,278,385
=========== =========== ============ ============= ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE> 56
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
EQUITY GROWTH & U.S. LARGE CAP EQUITY-
INDEX INCOME VALUE INCOME
TRUST TRUST TRUST * TRUST
----- ----- ------- -----
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 344,454 $ 2,847,784 $ 385,746 $ 2,480,978
Dividends 1,050,963 36,871,661 1,040,740 26,684,145
Less: Foreign taxes withheld (10,078) (204,302) (4,355) (178,794)
------------- ------------- ------------- -------------
Total income 1,385,339 39,515,143 1,422,131 28,986,329
------------- ------------- ------------- -------------
Expenses:
Investment adviser fee (Note 6) 220,248 20,739,640 790,211 9,004,174
Custodian fee 112,264 402,424 39,542 202,138
Printing and postage fees 12,169 391,005 5,073 150,496
Audit and legal fees 7,580 247,894 5,554 96,283
Registration and filing fees 2,572 109,798 2,993 47,584
Fund administration fees (Note 6) 4,718 146,335 4,215 55,800
Trustees fees and expenses (Note 7) 1,823 57,706 1,367 21,752
Miscellaneous 1,078 36,689 747 17,014
------------- ------------- ------------- -------------
Expenses before reimbursement by
investment adviser 362,452 22,131,491 849,702 9,595,241
Reimbursement of expenses by investment
adviser (Note 6) 9,984 -- -- --
------------- ------------- ------------- -------------
Net expenses 352,468 22,131,491 849,702 9,595,241
------------- ------------- ------------- -------------
Net investment income 1,032,871 17,383,652 572,429 19,391,088
------------- ------------- ------------- -------------
Realized and unrealized gain on investments,
futures, foreign currency and forward
foreign currency contracts:
Net realized gain (loss) on:
Investment transactions 831,620 182,201,245 1,533,279 99,860,193
Futures contracts 713,926 -- -- --
Foreign currency and forward foreign
currency contracts 30 (1,641) -- (59,761)
Change in unrealized appreciation (depreciation) on:
Investments 14,467,975 276,366,400 5,435,868 (81,285,317)
Futures contracts 44,856 -- -- --
Translation of foreign currency and forward
foreign currency contracts -- 761 -- (1,174)
------------- ------------- ------------- -------------
Net gain on investments, futures, foreign
currency and forward foreign currency
contracts 16,058,407 458,566,765 6,969,147 18,513,941
------------- ------------- ------------- -------------
Net increase in net assets resulting from
operations $ 17,091,278 $ 475,950,417 $ 7,541,576 $ 37,905,029
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
INCOME &
VALUE
TRUST
-----
<S> <C>
Investment Income:
Interest $ 16,083,264
Dividends 4,520,318
Less: Foreign taxes withheld (57,290)
-------------
Total income 20,546,292
-------------
Expenses:
Investment adviser fee (Note 6) 4,950,340
Custodian fee 249,176
Printing and postage fees 92,289
Audit and legal fees 60,218
Registration and filing fees 33,969
Fund administration fees (Note 6) 33,906
Trustees fees and expenses (Note 7) 13,516
Miscellaneous 17,222
-------------
Expenses before reimbursement by
investment adviser 5,450,636
Reimbursement of expenses by investment
adviser (Note 6) --
-------------
Net expenses 5,450,636
-------------
Net investment income 15,095,656
-------------
Realized and unrealized gain on investments,
futures, foreign currency and forward
foreign currency contracts:
Net realized gain (loss) on:
Investment transactions 124,510,597
Futures contracts (208,857)
Foreign currency and forward foreign
currency contracts (410,146)
Change in unrealized appreciation (depreciation) on:
Investments (88,066,184)
Futures contracts --
Translation of foreign currency and forward
foreign currency contracts (4,236)
-------------
Net gain on investments, futures, foreign
currency and forward foreign currency
contracts 35,821,174
-------------
Net increase in net assets resulting from
operations $ 50,916,830
=============
</TABLE>
* For the period May 1, 1999 (commencement of operations) to December 31,1999.
The accompanying notes are an integral part of the financial statements.
14
<PAGE> 57
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
HIGH STRATEGIC GLOBAL
BALANCED YIELD BOND BOND
TRUST TRUST TRUST TRUST
----- ----- ----- -----
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 8,075,335 $ 20,161,608 $ 35,449,910 $ 9,032,313
Mortgage dollar rolls -- -- 352,700 --
Dividends 2,477,847 11,153 -- --
Less: Foreign taxes withheld (86,271) -- (104,077) (55,740)
------------ ------------ ------------ ------------
Total income 10,466,911 20,172,761 35,698,533 8,976,573
------------ ------------ ------------ ------------
Expenses:
Investment adviser fee (Note 6) 2,172,887 1,660,951 3,064,500 1,337,692
Custodian fee 89,201 85,369 242,072 218,501
Printing and postage fees 40,626 24,322 50,787 44,908
Audit and legal fees 24,871 14,529 30,525 15,998
Registration and filing fees 10,577 3,903 12,493 9,652
Fund administration fees (Note 6) 14,589 9,389 18,858 8,724
Trustees fees and expenses (Note 7) 6,355 3,341 6,842 3,568
Miscellaneous 12,578 4,537 12,904 6,107
------------ ------------ ------------ ------------
Total expenses 2,371,684 1,806,341 3,438,981 1,645,150
------------ ------------ ------------ ------------
Net investment income 8,095,227 18,366,420 32,259,552 7,331,423
------------ ------------ ------------ ------------
Realized and unrealized gain (loss) on investments,
foreign currency and forward foreign currency
contracts:
Net realized gain (loss) on:
Investment transactions 2,183,915 (2,179,396) (9,523,555) (901,127)
Futures and written options contracts -- 324,285 -- (1,873,973)
Interest rate swaps -- -- -- (180,323)
Foreign currency and forward foreign
currency contracts 50,246 1,442,587 (1,034,962) (4,686,289)
Change in unrealized appreciation (depreciation) on:
Investments (14,122,890) (2,770,932) (12,904,237) (12,336,871)
Futures contracts -- 282,774 -- 92,977
Written options -- -- -- 1,539
Interest rate swaps -- -- -- 4,800
Translation of foreign currency and forward
foreign currency contracts (7,028) 202,491 (113,891) (17,754)
------------ ------------ ------------ ------------
Net gain (loss) on investments, foreign
currency and forward foreign currency
contracts (11,895,757) (2,698,191) (23,576,645) (19,897,021)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations $ (3,800,530) $ 15,668,229 $ 8,682,907 $(12,565,598)
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
TOTAL
RETURN
TRUST *
-------
<S> <C>
Investment Income:
Interest $ 7,736,734
Mortgage dollar rolls --
Dividends 40,000
Less: Foreign taxes withheld --
------------
Total income 7,776,734
------------
Expenses:
Investment adviser fee (Note 6) 925,369
Custodian fee 44,246
Printing and postage fees 5,094
Audit and legal fees 6,455
Registration and filing fees 4,209
Fund administration fees (Note 6) 4,204
Trustees fees and expenses (Note 7) 1,063
Miscellaneous 2,137
------------
Total expenses 992,777
------------
Net investment income 6,783,957
------------
Realized and unrealized gain (loss) on investments,
foreign currency and forward foreign currency
contracts:
Net realized gain (loss) on:
Investment transactions 2,368
Futures and written options contracts (1,149,016)
Interest rate swaps (121,549)
Foreign currency and forward foreign
currency contracts 35,603
Change in unrealized appreciation (depreciation) on:
Investments (6,074,315)
Futures contracts (827,374)
Written options (46,995)
Interest rate swaps --
Translation of foreign currency and forward
foreign currency contracts 54,191
------------
Net gain (loss) on investments, foreign
currency and forward foreign currency
contracts (8,127,087)
------------
Net increase (decrease) in net assets
resulting from operations ($ 1,343,130)
============
</TABLE>
* For the period May 1, 1999 (commencement of operations) to December 31,1999.
The accompanying notes are an integral part of the financial statements.
15
<PAGE> 58
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
INVESTMENT U.S.
QUALITY DIVERSIFIED GOVERNMENT MONEY
BOND BOND SECURITIES MARKET
TRUST TRUST TRUST TRUST
----- ----- ----- -----
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 23,339,802 $ 12,665,776 $ 24,617,470 $ 41,041,744
Mortgage dollar rolls -- -- 2,269,122 --
Dividends 42,589 195,076 -- --
Less: Foreign taxes withheld (2,527) (20,995) -- --
------------ ------------ ------------ ------------
Total income 23,379,864 12,839,857 26,886,592 41,041,744
------------ ------------ ------------ ------------
Expenses:
Investment adviser fee (Note 6) 2,011,248 1,597,677 2,588,073 4,033,204
Custodian fee 171,341 125,279 162,080 122,487
Printing and postage fees 65,105 28,265 50,579 109,855
Audit and legal fees 88,778 18,363 28,997 62,231
Registration and filing fees 4,739 10,530 7,039 17,099
Fund administration fees (Note 6) 16,284 10,177 18,945 42,389
Trustees fees and expenses (Note 7) 5,483 4,055 6,382 15,169
Miscellaneous 7,123 4,047 5,799 9,527
------------ ------------ ------------ ------------
Total expenses 2,370,101 1,798,393 2,867,894 4,411,961
------------ ------------ ------------ ------------
Net investment income 21,009,763 11,041,464 24,018,698 36,629,783
------------ ------------ ------------ ------------
Realized and unrealized gain (loss) on
investments, foreign currency and forward
foreign currency contracts:
Net realized gain (loss) on:
Investments (2,060,385) 14,952,677 (5,800,407) --
Futures contracts -- (134,255) -- --
Foreign currency and forward foreign
currency contracts -- (69,252) -- --
Change in unrealized appreciation (depreciation) on:
Investments (25,340,525) (24,758,278) (18,778,446) --
Futures contracts -- -- -- --
Translation of foreign currency and forward
foreign currency contracts -- (301) -- --
------------ ------------ ------------ ------------
Net gain on investments (27,400,910) (10,009,409) (24,578,853) --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations $( 6,391,147) $ 1,032,055 $(560,155) $ 36,629,783
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE> 59
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE LIFESTYLE
AGGRESSIVE GROWTH BALANCED MODERATE CONSERVATIVE
1000 820 640 460 280
TRUST TRUST TRUST TRUST TRUST
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Investment Income:
Income distributions received $ 475,768 $ 6,070,916 $ 10,740,850 $ 4,439,139 $ 4,191,943
------------ ------------ ------------ ------------ ------------
Total income 475,768 6,070,916 10,740,850 4,439,139 4,191,943
------------ ------------ ------------ ------------ ------------
Expenses:
Printing and postage fees 10,390 50,099 52,250 21,997 13,704
Audit and legal fees 6,139 30,389 28,918 14,465 7,631
Registration and filing fees 1,492 12,313 4,309 4,308 676
Fund administration fees (Note 6) 3,809 18,128 19,144 8,141 5,124
Trustee fees and expenses (Note 7) 1,352 7,372 5,149 3,468 1,588
Miscellaneous 1,019 4,836 4,886 1,912 1,085
------------ ------------ ------------ ------------ ------------
Expenses before reimbursement by
investment adviser 24,201 123,137 114,656 54,291 29,808
Reimbursement of expenses by
investment adviser (Note 6) 24,201 123,137 114,656 54,291 29,808
------------ ------------ ------------ ------------ ------------
Net expenses -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net investment income 475,768 6,070,916 10,740,850 4,439,139 4,191,943
------------ ------------ ------------ ------------ ------------
Realized and unrealized gain (loss) on
investments:
Net realized gain on investments 2,317,152 15,412,938 11,553,939 6,666,705 1,534,128
Capital gain distributions received 1,535,714 6,895,287 6,798,579 2,403,259 1,842,148
Change in unrealized appreciation
(depreciation) on investments 6,907,750 28,023,635 15,135,721 (1,640,323) (3,520,387)
------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments 10,760,616 50,331,860 33,488,239 7,429,641 (144,111)
------------ ------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations $ 11,236,384 $ 56,402,776 $ 44,229,089 $ 11,868,780 $ 4,047,832
============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE> 60
<TABLE>
<CAPTION>
PACIFIC RIM SCIENCE &
EMERGING MARKETS TECHNOLOGY
TRUST TRUST
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1998
<S> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income (loss) $426,377 $305,356 $ (2,002,999) $ (781,426)
Net realized gain (loss) on:
Investment transactions 1,705,214 (6,979,917) 121,073,536 (1,741,037)
Foreign currency and forward
foreign currency contracts (77,478) (238,982) (111,800) (10,264)
Change in unrealized appreciation
(depreciation) on:
Investments 24,461,774 5,942,247 314,096,686 49,026,105
Foreign currency and forward foreign
currency contracts 13,596 110,460 (1,470) 198
----------- ----------- -------------- ------------
Net increase (decrease) in net assets
resulting from operations 26,529,483 (860,836) 433,053,953 46,493,576
Distribution to shareholders from:
Net investment income (755,968) -- -- --
Net realized gains on investments and
foreign currency transactions -- -- (78,452,440) --
Distribution to shareholders in excess
of net investment income (735,566) -- -- --
----------- ----------- -------------- ------------
Total distributions (1,491,534) -- (78,452,440) --
Increase (decrease) in net assets from capital
share transactions (Note 4) 41,719,598 5,005,970 610,567,989 65,443,411
----------- ----------- -------------- ------------
Increase in net assets 66,757,547 4,145,134 965,169,502 111,936,987
Net assets at beginning of period 27,995,458 23,850,324 179,284,563 67,347,576
----------- ----------- -------------- ------------
Net assets at end of period $94,753,005 $27,995,458 $1,144,454,065 $179,284,563
=========== =========== ============== ============
Undistributed net investment income (loss) $356,425 $13,097 $1,203 --
=========== =========== ============== ============
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
SMALL CAP
TRUST
YEAR YEAR
ENDED ENDED
12/31/1999 12/31/1998
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income (loss) ($611,903) $627,681
Net realized gain (loss) on:
Investment transactions 67,864,657 277,904
Foreign currency and forward
foreign currency contracts (918,053) (134,334)
Change in unrealized appreciation
(depreciation) on:
Investments 43,457,530 14,673,325
Foreign currency and forward foreign
currency contracts (48,530) 36,507
------------ ------------
Net increase (decrease) in net assets
resulting from operations 109,743,701 15,481,083
Distribution to shareholders from:
Net investment income (500,048) (437,568)
Net realized gains on investments and
foreign currency transactions --
Distribution to shareholders in excess
of net investment income -- --
------------ ------------
Total distributions (500,048) (437,568)
Increase (decrease) in net assets from capital
share transactions (Note 4) (17,181,188) 4,278,984
------------ ------------
Increase in net assets 92,062,465 19,322,499
Net assets at beginning of period 147,898,209 128,575,710
------------ ------------
Net assets at end of period $239,960,674 $147,898,209
============ ============
Undistributed net investment income (loss) $9,669 $500,048
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements
18
<PAGE> 61
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH TRUST EMERGING SMALL COMPANY
(FORMERLY, PILGRIM BAXTER SMALL COMPANY BLEND
GROWTH TRUST) TRUST TRUST
YEAR YEAR YEAR YEAR 5/1/1999*
ENDED ENDED ENDED ENDED TO
12/31/1999 12/31/1998 12/31/1999 12/31/1998 12/31/1999
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment loss $ (588,808) $ (745,047) $ (1,038,957) $ (1,512,967) $ (23,435)
Net realized gain (loss) on:
Investment transactions 21,652,907 (17,375,070) 56,438,943 3,917,918 1,585,805
Futures contracts (913,664) -- (174,744) -- --
Foreign currency and forward foreign
currency contracts -- -- -- -- (2)
Change in unrealized appreciation (depreciation)
on:
Investments 6,872,345 26,770,878 137,960,108 (1,704,887) 7,936,198
Foreign currency and forward foreign
currency contracts -- -- -- -- --
------------ ------------ ------------ ------------ -----------
Net increase in net assets resulting from
operations 27,022,780 8,650,761 $193,185,350 700,064 9,498,566
Distribution to shareholders from:
Net investment income -- -- -- -- --
Net realized gains on investments and
foreign currency transactions -- -- (4,061,968) (4,130,364) (1,020,865)
Increase (decrease) in net assets from capital
share transactions (Note 4) (34,529,443) 41,023,697 (36,608,252) 28,293,036 45,036,559
------------ ------------ ------------ ------------ -----------
Increase (decrease) in net assets (7,506,663) 49,674,458 152,515,130 24,862,737 53,514,260
Net assets at beginning of period 143,009,604 93,335,146 300,636,818 275,774,081 --
------------ ------------ ------------ ------------ -----------
Net assets at end of period $135,502,941 $143,009,604 $453,151,948 $300,636,818 $53,514,260
============ ============ ============ ============ ===========
Undistributed net investment income -- -- -- -- --
============ ============ ============ ============ ===========
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
19
<PAGE> 62
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MID CAP GROWTH TRUST MID CAP OVERSEAS TRUST
(FORMERLY, SMALL/MID CAP STOCK (FORMERLY, INTERNATIONAL GROWTH
TRUST) TRUST AND INCOME TRUST)
YEAR YEAR 05/01/1999* YEAR YEAR
ENDED ENDED TO ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1999 12/31/1998
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income (loss) $ (2,116,253) $ (846,848) $ (72,096) $ 2,045,476 $ 1,349,144
Net realized gain (loss) on:
Investment transactions 61,094,831 55,888,821 (1,978,783) 33,604,875 431,540
Futures and options contracts 96,945 -- -- (39,264) --
Foreign currency and forward
foreign currency contracts -- -- -- 763,055 (2,299,214)
Change in unrealized appreciation
(depreciation) on:
Investments 136,532,659 26,206,105 3,606,412 74,964,607 16,672,663
Futures contracts -- -- -- 64,886 --
Foreign currency and forward
foreign currency contracts -- -- -- (184,989) (904,425)
------------ ------------ ----------- ------------ ------------
Net increase in net assets resulting
from operations 195,608,182 81,248,078 1,555,533 111,218,646 15,249,708
Distribution to shareholders from:
Net investment income -- -- -- -- (5,087,750)
Net realized gains on investments
and foreign currency transactions (55,167,921) -- -- -- (6,913,043)
------------ ------------ ----------- ------------ ------------
Total distributions (55,167,921) -- -- -- (12,000,793)
Increase in net assets from capital
share transactions (Note 4) 127,124,388 45,484,563 97,954,642 74,453,910 11,525,342
------------ ------------ ----------- ------------ ------------
Increase in net assets 267,564,649 126,732,641 99,510,175 185,672,556 14,774,257
Net assets at beginning of period 395,109,153 268,376,512 -- 218,550,711 203,776,454
------------ ------------ ----------- ------------ ------------
Net assets at end of period $662,673,802 $395,109,153 $99,510,175 $404,223,267 $218,550,711
============ ============ =========== ============ ============
Undistributed net investment income (loss) -- -- -- $ 3,815,459 $ (159,968)
============ ============ =========== ============ ============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
20
<PAGE> 63
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL MID CAP BLEND TRUST
STOCK VALUE (FORMERLY, EQUITY
TRUST TRUST* TRUST)
YEAR YEAR 5/1/1999 YEAR YEAR
ENDED ENDED TO ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1999 12/31/1998
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 1,149,294 $ 1,586,475 $ 601,389 $ 5,199,214 $ 6,512,985
Net realized gain (loss) on:
Investment transactions 18,675,048 1,821,899 303,161 234,512,411 164,915,719
Futures contracts -- -- -- 915,429 --
Foreign currency and forward
foreign currency contracts (200,544) (40,590) (109,395) 76,181 58,525
Change in unrealized appreciation
(depreciation) on:
Investments 35,664,027 22,818,165 4,332,806 138,462,147 (36,897,292)
Foreign currency and forward
foreign currency contracts (9,622) 13,799 (445) (10,400) 9,372
------------ ------------ ------------ -------------- --------------
Net increase in net assets resulting
from operations 55,278,203 26,199,748 5,127,516 379,154,982 134,599,309
Distribution to shareholders from:
Net investment income (939,920) (1,596,410) -- (6,563,301) (4,882,009)
Net realized gains on investments
and foreign currency transactions (17,972,744) (1,781,309) -- (170,802,927) (288,587,683)
Distribution to shareholders:
In excess of net investment income -- (42,466) -- -- --
In excess of net realized gains on
investments and foreign currency
transactions -- (140,607) -- -- --
------------ ------------ ------------ -------------- --------------
Total distributions (18,912,664) (3,560,792) -- (177,366,228) (293,469,692)
Increase (decrease) in net assets from
capital share transactions (Note 4) (38,739,606) 66,210,918 95,842,072 (84,729,370) 193,656,886
------------ ------------ ------------ -------------- --------------
Increase (decrease) in net assets (2,374,067) 88,849,874 100,969,588 117,059,384 34,786,503
Net assets at beginning of period 234,102,771 145,252,897 -- 1,556,168,603 1,521,382,100
------------ ------------ ------------ -------------- --------------
Net assets at end of period $231,728,704 $234,102,771 $100,969,588 $1,673,227,987 $1,556,168,603
============ ============ ============ ============== ==============
Undistributed net investment income (loss) $ 67,065 ($77,076) $ 491,994 $ 5,093,411 $ 6,563,301
============ ============ ============ ============== ==============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
21
<PAGE> 64
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SMALL GLOBAL
COMPANY VALUE EQUITY
TRUST TRUST
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income (loss) $ 159,652 $ 188,462 $ 9,980,445 $ 7,701,552
Net realized gain (loss) on:
Investment transactions 1,909,906 (16,508,567) 77,601,396 88,388,784
Futures contracts -- -- -- --
Foreign currency and forward
foreign currency contracts -- -- 183,397 (1,775,815)
Change in unrealized appreciation
(depreciation) on:
Investments 1,506,359 9,615,252 (61,686,373) 6,402,579
Foreign currency and forward
foreign currency contracts -- -- 4,010,954 141,285
------------ ------------ ------------ ------------
Net increase(decrease) in net assets
resulting from operations 3,575,917 (6,704,853) 30,089,819 100,858,385
Distribution to shareholders from:
Net investment income (105,452) (56,196) (5,423,428) (16,146,783)
Net realized gains on investments
and foreign currency transactions -- -- (88,486,537) (48,191,144)
------------ ------------ ------------ ------------
Total distributions (105,452) (56,196) (93,909,965) (64,337,927)
Increase (decrease) in net assets from
capital share transactions (Note 4) (76,637,904) 102,004,697 (27,015,745) 23,630,416
------------ ------------ ------------ ------------
Increase (decrease) in net assets (73,167,439) 95,243,648 (90,835,891) 60,150,874
Net assets at beginning of period 162,334,732 67,091,084 928,563,621 868,412,747
------------ ------------ ------------ ------------
Net assets at end of period $ 89,167,293 $162,334,732 $837,727,730 $928,563,621
============ ============ ============ ============
Undistributed net investment income $ 125,033 $ 122,775 $ 10,121,306 $ 5,423,428
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
GROWTH
TRUST
YEAR YEAR
ENDED ENDED
12/31/1999 12/31/1998
---------- ----------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income (loss) $ (803,576) $ 956,935
Net realized gain (loss) on:
Investment transactions 75,873,948 17,266,771
Futures contracts 178,770 --
Foreign currency and forward
foreign currency contracts (11,504) (281)
Change in unrealized appreciation
(depreciation) on:
Investments 77,260,171 31,040,331
Foreign currency and forward
foreign currency contracts 10,829 (9,207)
------------ ------------
Net increase(decrease) in net assets
resulting from operations 152,508,638 49,254,549
Distribution to shareholders from:
Net investment income (956,654) (785,667)
Net realized gains on investments
and foreign currency transactions (17,085,959) (7,656,124)
------------ ------------
Total distributions (18,042,613) (8,441,791)
Increase (decrease) in net assets from
capital share transactions (Note 4) 208,487,269 91,793,552
------------ ------------
Increase (decrease) in net assets 342,953,294 132,606,310
Net assets at beginning of period 299,994,476 167,388,166
------------ ------------
Net assets at end of period $642,947,770 $299,994,476
============ ============
Undistributed net investment income -- $ 956,654
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE> 65
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE CAP GROWTH TRUST QUANTITATIVE
(FORMERLY, AGGRESSIVE ASSET EQUITY
ALLOCATION TRUST) TRUST
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income $ 1,374,378 $ 3,958,805 $ 1,970,981 $ 2,167,436
Net realized gain (loss) on:
Investment transactions 70,613,051 24,484,460 59,551,059 25,556,516
Futures contracts 600,561 168,829 -- --
Foreign currency and forward foreign
currency contracts (164,609) (3,049) -- --
Change in unrealized appreciation (depreciation)
on:
Investments 4,474,513 14,927,862 11,635,061 21,957,322
Futures contracts (133,291) 240,570 -- --
Foreign currency and forward foreign
currency contracts (3,088) 8,462 -- --
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations 76,761,515 43,785,939 73,157,101 49,681,274
Distribution to shareholders from:
Net investment income (4,041,499) (4,765,263) (2,089,131) (1,960,998)
Net realized gains on investments, futures
and foreign currency transactions (24,147,307) (24,329,301) (26,012,081) (21,211,052)
------------ ------------ ------------ ------------
Total distributions (28,188,806) (29,094,564) (28,101,212) (23,172,050)
Increase in net assets from capital share
transactions (Note 4) 91,130,824 4,657,120 132,378,612 60,435,931
------------ ------------ ------------ ------------
Increase in net assets 139,703,533 19,348,495 177,434,501 86,945,155
Net assets at beginning of period 262,881,724 243,533,229 254,474,860 167,529,705
------------ ------------ ------------ ------------
Net assets at end of period $402,585,257 $262,881,724 $431,909,361 $254,474,860
============ ============ ============ ============
Undistributed net investment income $ 1,269,910 $ 3,977,606 $ 1,884,589 $ 2,089,131
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
BLUE CHIP
GROWTH
TRUST
YEAR YEAR
ENDED ENDED
12/31/1999 12/31/1998
---------- ----------
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income $ 887,001 $ 3,184,232
Net realized gain (loss) on:
Investment transactions 82,668,675 50,695,303
Futures contracts -- --
Foreign currency and forward foreign
currency contracts (15,872) (8,634)
Change in unrealized appreciation (depreciation)
on:
Investments 181,383,806 174,851,600
Futures contracts -- --
Foreign currency and forward foreign
currency contracts (62) 63
-------------- --------------
Net increase in net assets resulting from
operations 264,923,548 228,722,564
Distribution to shareholders from:
Net investment income (3,087,681) (4,121,547)
Net realized gains on investments, futures
and foreign currency transactions (53,476,374) (11,715,254)
-------------- --------------
Total distributions (56,564,055) (15,836,801)
Increase in net assets from capital share
transactions (Note 4) 384,712,051 219,468,302
-------------- --------------
Increase in net assets 593,071,544 432,354,065
Net assets at beginning of period 1,141,161,523 708,807,458
-------------- --------------
Net assets at end of period $1,734,233,067 $1,141,161,523
============== ==============
Undistributed net investment income $ 796,216 $ 3,087,681
============== ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
23
<PAGE> 66
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
REAL ESTATE
SECURITIES VALUE
TRUST TRUST
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 9,391,759 $ 9,202,498 $ 2,093,501 $ 3,188,316
Net realized gain (loss) on:
Investment transactions (29,820,928) (11,066,977) 2,110,435 3,711,085
Futures contracts -- -- -- --
Foreign currency and forward
foreign currency contracts -- -- -- --
Change in unrealized appreciation (depreciation)
on:
Investments 6,725,127 (28,378,705) 2,074,449 (14,016,429)
Futures contracts -- -- -- --
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations (13,704,042) (30,243,184) 6,278,385 (7,117,028)
Distribution to shareholders from:
Net investment income (7,390,951) (4,711,304) (2,094,968) (3,187,336)
Net realized gains on investments and
foreign currency transactions -- (16,427,838) (2,110,435) (3,711,085)
Distribution to shareholders in excess of
net realized gains on investments and foreign
currency transactions -- -- (418,947) (1,531,744)
------------- ------------- ------------- -------------
Total distributions (7,390,951) (21,139,142) (4,624,350) (8,430,165)
Increase (decrease) in net assets from capital
share transactions (Note 4) 56,018,845 51,455,304 (110,929,533) 126,430,055
------------- ------------- ------------- -------------
Increase (decrease) in net assets 34,923,852 72,978 (109,275,498) 110,882,862
Net assets at beginning of period 161,832,171 161,759,193 255,554,486 144,671,624
------------- ------------- ------------- -------------
Net assets at end of period $ 196,756,023 $ 161,832,171 $ 146,278,988 $ 255,554,486
============= ============= ============= =============
Undistributed net investment income $ 7,827,512 $ 7,502,774 -- $ 981
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
EQUITY INDEX
TRUST
YEAR YEAR
ENDED ENDED
12/31/1999 12/31/1998
---------- ----------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 1,032,871 $ 726,416
Net realized gain (loss) on:
Investment transactions 831,620 50,182
Futures contracts 713,926 871,822
Foreign currency and forward
foreign currency contracts 30 20
Change in unrealized appreciation (depreciation)
on:
Investments 14,467,975 9,449,307
Futures contracts 44,856 (26,890)
------------- -------------
Net increase (decrease) in net assets resulting
from operations 17,091,278 11,070,857
Distribution to shareholders from:
Net investment income (1,033,741) (725,595)
Net realized gains on investments and
foreign currency transactions (1,748,709) (1,258,052)
Distribution to shareholders in excess of
net realized gains on investments and foreign
currency transactions -- --
------------- -------------
Total distributions (2,782,450) (1,983,647)
Increase (decrease) in net assets from capital
share transactions (Note 4) 37,173,941 27,130,373
------------- -------------
Increase (decrease) in net assets 51,482,769 36,217,583
Net assets at beginning of period 63,292,185 27,074,602
------------- -------------
Net assets at end of period $ 114,774,954 $ 63,292,185
============= =============
Undistributed net investment income -- $ 841
============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
24
<PAGE> 67
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. LARGE CAP
GROWTH & INCOME VALUE EQUITY-INCOME
TRUST TRUST TRUST
----------------------------- ----------- ----------------------------
YEAR YEAR 5/1/1999 * YEAR YEAR
ENDED ENDED TO ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1999 12/31/1998
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 17,383,652 $ 16,270,792 $ 572,429 $ 19,391,088 $ 21,631,383
Net realized gain (loss) on:
Investment transactions 182,201,245 73,188,872 1,533,279 99,860,193 55,707,234
Foreign currency and forward
foreign currency contracts (1,641) -- -- (59,761) 5,469
Change in unrealized appreciation
(depreciation) on:
Investments 276,366,400 360,559,727 5,435,868 (81,285,317) 10,010,997
Foreign currency and forward
foreign currency contracts 761 1,520 -- (1,174) 1,576
-------------- -------------- ------------ -------------- --------------
Net increase in net assets resulting
from operations 475,950,417 450,020,911 7,541,576 37,905,029 87,356,659
Distribution to shareholders from:
Net investment income (16,252,305) (15,313,773) -- (21,363,276) (18,698,833)
Net realized gains on investments,
futures and foreign currency
transactions (73,217,857) (99,563,470) -- (55,202,191) (40,844,225)
-------------- -------------- ------------ -------------- --------------
Total distributions (89,470,162) (114,877,243) -- (76,565,467) (59,543,058)
Increase (decrease) in net assets from
capital share transactions (Note 4) 510,621,747 349,586,661 203,182,949 (38,421,374) 118,823,876
-------------- -------------- ------------ -------------- --------------
Increase (decrease) in net assets 897,102,002 684,730,329 210,724,525 (77,081,812) 146,637,477
Net assets at beginning of period 2,290,117,607 1,605,387,278 -- 1,088,342,064 941,704,587
-------------- -------------- ------------ -------------- --------------
Net assets at end of period $3,187,219,609 $2,290,117,607 $210,724,525 $1,011,260,252 $1,088,342,064
============== ============== ============ ============== ==============
Undistributed net investment income $ 17,382,011 $ 16,252,305 $ 565,664 $ 18,891,147 $ 21,363,276
============== ============== ============ ============== ==============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
25
<PAGE> 68
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INCOME & VALUE TRUST
(FORMERLY, MODERATE ASSET BALANCED
ALLOCATION TRUST) TRUST
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income $ 15,095,656 $ 17,640,709 $ 8,095,227 $ 5,746,873
Net realized gain (loss) on:
Investment transactions 124,510,597 51,848,087 2,183,915 13,096,202
Futures contracts (208,857) 459,020 -- --
Foreign currency and forward
foreign currency contracts (410,146) (29,982) 50,246 (192,069)
Change in unrealized appreciation (depreciation)
on:
Investments (88,066,184) 16,988,917 (14,122,890) 9,091,108
Futures contracts -- 24,906 -- --
Foreign currency and forward foreign
currency contracts (4,236) 16,705 (7,028) 1,674
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations 50,916,830 86,948,362 (3,800,530) 27,743,788
Distribution to shareholders from:
Net investment income (17,926,561) (20,941,772) (5,554,804) (4,637,642)
Net realized gains on investments,
futures and foreign currency
transactions (51,417,390) (47,173,913) (13,468,699) (20,360,461)
Distribution to shareholders in excess
of net investment income -- -- -- --
------------- ------------- ------------- -------------
Total distributions (69,343,951) (68,115,685) (19,023,503) (24,998,103)
Increase (decrease) in net assets from capital
share transactions (Note 4) 40,240,183 (9,963,436) 26,527,898 74,663,502
------------- ------------- ------------- -------------
Increase in net assets 21,813,062 8,869,241 3,703,865 77,409,187
Net assets at beginning of period 618,010,881 609,141,640 254,453,830 177,044,643
------------- ------------- ------------- -------------
Net assets at end of period $ 639,823,943 $ 618,010,881 $ 258,157,695 $ 254,453,830
============= ============= ============= =============
Undistributed net investment income $ 15,210,363 $ 17,849,145 $ 8,076,392 $ 5,554,804
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
HIGH YIELD
TRUST
YEAR YEAR
ENDED ENDED
12/31/1999 12/31/1998
---------- ----------
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income $ 18,366,420 $ 12,495,423
Net realized gain (loss) on:
Investment transactions (2,179,396) 685,329
Futures contracts 324,285 --
Foreign currency and forward
foreign currency contracts 1,442,587 (338,289)
Change in unrealized appreciation (depreciation)
on:
Investments (2,770,932) (9,230,531)
Futures contracts 282,774 (267,717)
Foreign currency and forward foreign
currency contracts 202,491 (89,864)
------------- -------------
Net increase (decrease) in net assets resulting
from operations 15,668,229 3,254,351
Distribution to shareholders from:
Net investment income (18,396,822) (12,153,316)
Net realized gains on investments,
futures and foreign currency
transactions -- (463,039)
Distribution to shareholders in excess
of net investment income (875,053) (1,115,256)
------------- -------------
Total distributions (19,271,875) (13,731,611)
Increase (decrease) in net assets from capital
share transactions (Note 4) 52,252,907 110,083,856
------------- -------------
Increase in net assets 48,649,261 99,606,596
Net assets at beginning of period 192,354,251 92,747,655
------------- -------------
Net assets at end of period $ 241,003,512 $ 192,354,251
============= =============
Undistributed net investment income $ 626,800 $ 46,904
============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
26
<PAGE> 69
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GLOBAL BOND TRUST
STRATEGIC BOND (FORMERLY, GLOBAL TOTAL RETURN
TRUST GOVERNMENT BOND TRUST) TRUST
YEAR YEAR YEAR YEAR 5/1/1999 *
ENDED ENDED ENDED ENDED TO
12/31/1999 12/31/1998 12/31/1999 12/31/1998 12/31/1999
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 32,259,552 $ 31,143,747 $ 7,331,423 $ 11,145,124 $ 6,783,957
Net realized gain (loss) on:
Investment transactions (9,523,555) (11,765,900) (901,127) 10,492,768 2,368
Futures contracts and written options -- -- (1,873,973) -- (1,149,016)
Interest rate swaps -- -- (180,323) -- (121,549)
Foreign currency and forward foreign
currency contracts (1,034,962) (474,432) (4,686,289) (9,668,870) 35,603
Change in unrealized appreciation
(depreciation) on:
Investments (12,904,237) (13,688,101) (12,336,871) 6,083,115 (6,074,315)
Futures contracts -- -- 92,977 -- (827,374)
Options -- -- 1,539 -- (46,995)
Swaps -- -- 4,800 -- --
Foreign currency and forward foreign
currency contracts (113,891) (348,502) (17,754) (3,265,913) 54,191
------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations 8,682,907 4,866,812 (12,565,598) 14,786,224 (1,343,130)
Distribution to shareholders from:
Net investment income (30,665,785) (22,915,842) (16,839,448) (14,017,074) --
Net realized gains on investments,
futures and foreign currency
transactions -- (3,897,165) -- (5,897,775) --
------------ ------------ ------------ ------------ ------------
Total distributions (30,665,785) (26,813,007) (16,839,448) (19,914,849) --
Increase (decrease) in net assets from capital
share transactions (Note 4) (53,032,944) 99,770,482 (21,592,911) (13,998,370) 241,359,211
------------ ------------ ------------ ------------ ------------
Increase (decrease) in net assets (75,015,822) 77,824,287 (50,997,957) (19,126,995) 240,016,081
Net assets at beginning of period 443,414,495 365,590,208 196,990,128 216,117,123 --
------------ ------------ ------------ ------------ ------------
Net assets at end of period $368,398,673 $443,414,495 $145,992,171 $196,990,128 $240,016,081
============ ============ ============ ============ ============
Undistributed net investment income $ 32,037,885 $ 30,812,687 $ 4,602,698 $ 18,056,312 $ 6,857,699
============ ============ ============ ============ ============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
27
<PAGE> 70
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INVESTMENT DIVERSIFIED BOND TRUST
QUALITY BOND (FORMERLY, CONSERVATIVE
TRUST ASSET ALLOCATION TRUST)
----------------------------- ------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 21,009,763 $ 17,062,319 $ 11,041,464 $ 7,917,173
Net realized gain (loss) on:
Investment transactions (2,060,385) 1,251,275 14,952,677 10,151,359
Futures contracts -- -- (134,255) 34,810
Foreign currency and forward
foreign currency contracts -- -- (69,252) (1,455)
Change in unrealized appreciation (depreciation)
on:
Investments (25,340,525) 2,352,727 (24,758,278) 2,097,641
Futures contracts -- -- -- (1,773)
Foreign currency and forward foreign
currency contracts -- -- (301) 2,506
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations (6,391,147) 20,666,321 1,032,055 20,200,261
Distribution to shareholders from:
Net investment income (17,104,902) (11,620,376) (7,999,543) (8,864,663)
Net realized gains on investments and
foreign currency transactions -- -- (10,064,425) (9,705,964)
------------- ------------- ------------- -------------
Total distributions (17,104,902) (11,620,376) (18,063,968) (18,570,627)
Increase (decrease) in net assets from capital
share transactions (Note 4) (20,900) 114,519,856 39,100,258 (9,177,785)
------------- ------------- ------------- -------------
Increase (decrease) in net assets (23,516,949) 123,565,801 22,068,345 (7,548,151)
Net assets at beginning of period 312,110,744 188,544,943 196,799,971 204,348,122
------------- ------------- ------------- -------------
Net assets at end of period $ 288,593,795 $ 312,110,744 $ 218,868,316 $ 196,799,971
============= ============= ============= =============
Undistributed net investment income $ 21,087,951 $ 17,104,902 $ 11,144,465 $ 7,979,316
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SECURITIES
TRUST
-----------------------------
YEAR YEAR
ENDED ENDED
12/31/1999 12/31/1998
---------- ----------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 24,018,698 $ 17,784,744
Net realized gain (loss) on:
Investment transactions (5,800,407) 2,537,744
Futures contracts -- --
Foreign currency and forward
foreign currency contracts -- --
Change in unrealized appreciation (depreciation)
on:
Investments (18,778,446) 1,073,117
Futures contracts -- --
Foreign currency and forward foreign
currency contracts -- --
------------- -------------
Net increase (decrease) in net assets resulting
from operations (560,155) 21,395,605
Distribution to shareholders from:
Net investment income (18,022,070) (13,043,750)
Net realized gains on investments and
foreign currency transactions -- --
------------- -------------
Total distributions (18,022,070) (13,043,750)
Increase (decrease) in net assets from capital
share transactions (Note 4) 18,235,263 103,986,283
------------- -------------
Increase (decrease) in net assets (346,962) 112,338,138
Net assets at beginning of period 363,615,473 251,277,335
------------- -------------
Net assets at end of period $ 363,268,511 $ 363,615,473
============= =============
Undistributed net investment income $ 24,191,999 $ 18,004,465
============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
28
<PAGE> 71
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LIFESTYLE
MONEY MARKET AGGRESSIVE 1000
TRUST TRUST
------------------------------- -------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income $ 36,629,783 $ 27,391,740 $ 475,768 $ 311,250
Capital gain distributions received -- -- 1,535,714 1,458,191
Net realized gain (loss) on investment
transactions -- -- 2,317,152 (966,235)
Change in unrealized appreciation on
investments -- -- 6,907,750 2,264,970
--------------- --------------- --------------- ---------------
Net increase in net assets resulting
from operations 36,629,783 27,391,740 11,236,384 3,068,176
Distribution to shareholders from:
Net investment income (36,629,783) (27,391,740) (475,768) (311,250)
Capital gain distributions received -- -- (1,535,714) (1,458,191)
Net realized gains on investments -- -- (1,903,020) (609,117)
Distribution to shareholders in excess of
net realized gain on investments -- -- (52,051) (966,235)
--------------- --------------- --------------- ---------------
Total distributions (36,629,783) (27,391,740) (3,966,553) (3,344,793)
Increase (decrease) in net assets from capital
share transactions (Note 4) 475,021,391 170,123,617 5,277,916 31,697,095
--------------- --------------- --------------- ---------------
Increase in net assets 475,021,391 170,123,617 12,547,747 31,420,478
Net assets at beginning of period 609,837,155 439,713,538 80,525,005 49,104,527
--------------- --------------- --------------- ---------------
Net assets at end of period $ 1,084,858,546 $ 609,837,155 $ 93,072,752 $ 80,525,005
=============== =============== =============== ===============
Undistributed net investment income -- -- -- --
=============== =============== =============== ===============
</TABLE>
<TABLE>
<CAPTION>
LIFESTYLE
GROWTH 820
TRUST
--------------------------------
YEAR YEAR
ENDED ENDED
12/31/1999 12/31/1998
---------- ----------
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income $ 6,070,916 $ 5,257,312
Capital gain distributions received 6,895,287 6,975,778
Net realized gain (loss) on investment
transactions 15,412,938 (2,798,969)
Change in unrealized appreciation on
investments 28,023,635 7,959,295
--------------- ---------------
Net increase in net assets resulting
from operations 56,402,776 17,393,416
Distribution to shareholders from:
Net investment income (6,070,916) (5,257,312)
Capital gain distributions received (6,895,287) (6,975,778)
Net realized gains on investments (6,957,893) (2,747,990)
Distribution to shareholders in excess of
net realized gain on investments -- (2,798,969)
--------------- ---------------
Total distributions (19,924,096) (17,780,049)
Increase (decrease) in net assets from capital
share transactions (Note 4) (2,530,643) 163,537,979
--------------- ---------------
Increase in net assets 33,948,037 163,151,346
Net assets at beginning of period 380,309,003 217,157,657
--------------- ---------------
Net assets at end of period $ 414,257,040 $ 380,309,003
=============== ===============
Undistributed net investment income -- --
=============== ===============
</TABLE>
The accompanying notes are an integral part of the financial statements.
29
<PAGE> 72
MANUFACTURERS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LIFESTYLE LIFESTYLE
BALANCED 640 MODERATE 460
TRUST TRUST
----------------------------- -----------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/1999 12/31/1998 12/31/1999 12/31/1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income $ 10,740,850 $ 6,372,564 $ 4,439,139 $ 2,862,066
Capital gain distributions received 6,798,579 7,454,039 2,403,259 1,336,619
Net realized gain (loss) on investment
transactions 11,553,939 (3,086,187) 6,666,705 1,667,664
Change in unrealized appreciation
(depreciation) on investments 15,135,721 3,981,875 (1,640,323) 3,159,452
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations 44,229,089 14,722,291 11,868,780 9,025,801
Distribution to shareholders from:
Net investment income (10,740,850) (6,372,564) (4,439,139) (2,862,066)
Capital gain distributions received (6,798,579) (4,367,852) (2,403,259) (1,336,619)
Net realized gains on investments (5,263,076) (2,747,394) (2,179,014) (371,970)
Distribution to shareholders in excess of
net realized gain on investments -- (3,086,187) -- --
------------- ------------- ------------- -------------
Total distributions (22,802,505) (16,573,997) (9,021,412) (4,570,655)
Increase in net assets from capital share
transactions (Note 4) 17,747,995 192,729,857 26,524,887 80,926,976
------------- ------------- ------------- -------------
Increase in net assets 39,174,579 190,878,151 29,372,255 85,382,122
Net assets at beginning of period 377,531,453 186,653,302 138,127,752 52,745,630
------------- ------------- ------------- -------------
Net assets at end of period $ 416,706,032 $ 377,531,453 $ 167,500,007 $ 138,127,752
============= ============= ============= =============
Undistributed net investment income -- -- -- --
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
LIFESTYLE
CONSERVATIVE 280
TRUST
-----------------------------
YEAR YEAR
ENDED ENDED
12/31/1999 12/31/1998
---------- ----------
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income $ 4,191,943 $ 1,356,487
Capital gain distributions received 1,842,148 510,860
Net realized gain (loss) on investment
transactions 1,534,128 312,472
Change in unrealized appreciation
(depreciation) on investments (3,520,387) 2,705,774
------------- -------------
Net increase in net assets resulting
from operations 4,047,832 4,885,592
Distribution to shareholders from:
Net investment income (4,191,943) (1,356,416)
Capital gain distributions received (1,842,148) (510,860)
Net realized gains on investments (472,028) (135,411)
Distribution to shareholders in excess of
net realized gain on investments -- --
------------- -------------
Total distributions (6,506,119) (2,002,687)
Increase in net assets from capital share
transactions (Note 4) 30,489,862 55,770,613
------------- -------------
Increase in net assets 28,031,575 58,653,518
Net assets at beginning of period 78,403,538 19,750,020
------------- -------------
Net assets at end of period $ 106,435,113 $ 78,403,538
============= =============
Undistributed net investment income -- --
============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
30
<PAGE> 73
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PACIFIC RIM EMERGING MARKETS TRUST
YEARS ENDED DECEMBER 31,
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.83 $ 7.16 $ 10.90 $ 10.36 $ 9.41
Income from investment operations:
Net investment income 0.09 0.08 0.05 0.07 0.12
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 4.17 (0.41) (3.77) 0.94 0.96
------- ------- ------- ------- -------
Total from investment operations 4.26 (0.33) (3.72) 1.01 1.08
Less distributions:
Dividends from net investment income (0.21) -- -- (0.08) (0.09)
Distributions from capital gains -- -- (0.02) (0.39) (0.04)
------- ------- ------- ------- -------
Total distributions (0.21) -- (0.02) (0.47) (0.13)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 10.88 $ 6.83 $ 7.16 $ 10.90 $ 10.36
======= ======= ======= ======= =======
TOTAL RETURN 62.87% (4.61%) (34.12%) 9.81% 11.47%
Net assets, end of period (000's) $94,753 $27,995 $23,850 $23,241 $13,057
Ratio of operating expenses to average net assets 1.11% 1.21% 1.42% 1.50% 1.50%
Ratio of net investment income to average net assets 0.90% 1.21% 0.65% 0.78% 1.01%
Portfolio turnover rate 42% 62% 63% 48% 55%
</TABLE>
The accompanying notes are an integral part of the financial statements.
31
<PAGE> 74
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCIENCE &
TECHNOLOGY TRUST
YEARS ENDED 01/01/1997*
DECEMBER 31, TO
1999 1998 12/31/1997
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $19.52 $13.62 $12.50
Income from investment operations:
Net investment loss (0.06) (0.09) (0.04)
Net realized and unrealized gain on investments
and foreign currency transactions 19.43 5.99 1.38
---------- -------- -------
Total from investment operations 19.37 5.90 1.34
Less distributions:
Distributions from capital gains (2.72) -- (0.04)
Distributions in excess of capital gains -- -- (0.18)
---------- -------- -------
Total distributions (2.72) -- (0.22)
---------- -------- -------
NET ASSET VALUE, END OF PERIOD $36.17 $19.52 $13.62
========== ======== =======
TOTAL RETURN 99.49% 43.32% 10.71%
Net assets, end of period (000's) $1,144,454 $179,285 $67,348
========== ======== =======
Ratio of operating expenses to average net assets 1.16% 1.21% 1.26%
Ratio of net investment loss to average net assets (0.40%) (0.73%) (0.54%)
Portfolio turnover rate 113% 105% 121%
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
32
<PAGE> 75
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (For A Share Outstanding Throughout The Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL SMALL CAP TRUST
YEARS ENDED DECEMBER 31, 03/04/1996*
TO
1999 1998 1997 12/31/1996
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $15.28 $13.70 $13.60 $12.50
Income from investment operations:
Net investment income (loss) (0.07) 0.07 0.08 0.06
Net realized and unrealized gain on investments
and foreign currency transactions 13.00 1.56 0.03 1.09
-------- -------- -------- -------
Total from investment operations 12.93 1.63 0.11 1.15
Less distributions:
Dividends from net investment income (0.05) (0.05) (0.01) (0.05)
-------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $28.16 $15.28 $13.70 $13.60
======== ======== ======== =======
TOTAL RETURN 84.92% 11.86% 0.79% 9.20%+
Net assets, end of period (000's) $239,961 $147,898 $128,576 $97,218
Ratio of operating expenses to average net assets 1.37% 1.25% 1.31% 1.29%(A)
Ratio of net investment income (loss) to average net assets (0.41%) 0.44% 0.63% 0.93%(A)
Portfolio turnover rate 309% 45% 74% 50%(A)
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of operations
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
33
<PAGE> 76
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH TRUST
(FORMERLY, PILGRIM BAXTER GROWTH TRUST)
YEARS ENDED DECEMBER 31, 01/01/1997 *
TO
1999 1998 12/31/97
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.04 $12.50 $12.50
Income from investment operations:
Net investment loss (0.06) (0.07) (0.03)
Net realized and unrealized gain on investments 4.36 0.61 0.03
-------- -------- -------
Total from investment operations 4.30 0.54 -
-------- -------- -------
NET ASSET VALUE, END OF PERIOD $17.34 $13.04 $12.50
======== ======== =======
TOTAL RETURN 32.98% 4.32% 0.00%
Net assets, end of period (000's) $135,503 $143,010 $93,335
Ratio of operating expenses to average net assets 1.15% 1.14% 1.18%
Ratio of net investment loss to average net assets (0.59%) (0.64%) (0.46%)
Portfolio turnover rate 161% 189% 63%
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
34
<PAGE> 77
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING SMALL
COMPANY TRUST
------------------------------------------------
YEARS ENDED DECEMBER 31, 01/01/1997*
------------------------ TO
1999 1998 12/31/97
-------- ---------- -----------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $23.82 $24.13 $20.60
Income from investment operations:
Net investment loss (0.09) (0.12) (0.02)
Net realized and unrealized gain on investments 17.35 0.17 3.55
-------- -------- --------
Total from investment operations 17.26 0.05 3.53
Less distributions:
Distributions from capital gains (0.34) (0.36) -
-------- -------- --------
NET ASSET VALUE, END OF PERIOD $40.74 $23.82 $24.13
======== ======== ========
Total return 73.53% 0.07% 17.14%
Net assets, end of period (000's) $453,152 $300,637 $275,774
Ratio of operating expenses to average net assets 1.12% 1.10% 1.11%
Ratio of net investment loss to average net assets (0.35%) (0.54%) (0.13%)
Portfolio turnover rate 136% 77% 120%
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
35
<PAGE> 78
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY
BLEND TRUST
-------------
05/01/1999*
TO
12/31/1999
-------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.50
Income from investment operations:
Net investment loss (0.01)
Net realized and unrealized gain on investments 3.58
-------------
Total from investment operations 3.57
-------------
Less distributions:
Distributions from capital gains (0.31)
-------------
NET ASSET VALUE, END OF PERIOD $15.76
=============
Total return 28.56%+
Net assets, end of period (000's) $53,514
Ratio of operating expenses to average net assets 1.30% (A)
Ratio of net investment loss to average net assets (0.12%)(A)
Portfolio turnover rate 28%(A)
</TABLE>
* Commencement of operations
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
36
<PAGE> 79
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP GROWTH TRUST
(FORMERLY, SMALL/MID CAP TRUST)
-------------------------------------------------------
YEARS ENDED DECEMBER 31, 03/04/1996*
----------------------------------------- TO
1999 1998 1997 12/31/1996
--------- -------- -------- ----------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $19.77 $15.41 $13.37 $12.50
Income from investment operations:
Net investment loss (0.08) (0.04) (0.04) -
Net realized and unrealized gain on investments
and foreign currency transactions 7.87 4.40 2.08 0.87
--------- -------- -------- --------
Total from investment operations 7.79 4.36 2.04 0.87
--------- -------- -------- --------
Less distributions:
Distributions from capital gains (2.67) - - -
--------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $24.89 $19.77 $15.41 $13.37
========= ======== ======== ========
Total return 44.69% 28.29% 15.26% 6.96%+
Net assets, end of period (000's) $662,674 $395,109 $268,377 $176,062
Ratio of operating expenses to average net assets 1.03% 1.04% 1.05% 1.10%(A)
Ratio of net investment loss to average net assets (0.46%) (0.27%) (0.33%) (0.02%)(A)
Portfolio turnover rate 193% 150% 151% 67%(A)
</TABLE>
* Commencement of operations
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
37
<PAGE> 80
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP
STOCK TRUST
-----------
05/01/1999*
TO
12/31/1999
-----------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.50
Income from investment operations:
Net investment loss (0.01)
Net realized and unrealized gain on investments
and foreign currency transactions 0.11
-------
Total from investment operations 0.10
-------
NET ASSET VALUE, END OF PERIOD $12.60
=======
Total return 0.80%+
Net assets, end of period (000's) $99,504
Ratio of operating expenses to average net assets 1.025%(A)
Ratio of net investment loss to average net assets (0.15%)(A)
Portfolio turnover rate 36%(A)
</TABLE>
* Commencement of operations
+ Non annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
38
<PAGE> 81
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OVERSEAS TRUST
(FORMERLY, INTERNATIONAL GROWTH AND INCOME TRUST)
----------------------------------------------------------------------
YEARS ENDED DECEMBER 31, 01/09/1995*
----------------------------------------------------- TO
1999 1998 1997 1996 12/31/1995
----- ------ ------ ------ -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.33 $11.01 $11.77 $10.47 $10.00
Income from investment operations:
Net investment income 0.08 0.06 0.23 0.17 0.11
Net realized and unrealized
gain (loss) on investments and foreign
currency transactions 4.51 0.88 (0.26) 1.15 0.59
------- -------- --------- ------- ------
Total from investment operations 4.59 0.94 (0.03) 1.32 0.70
Less distributions:
Dividends from net investment income -- (0.26) (0.22) (0.02) (0.12)
Distributions from capital gains -- (0.36) (0.51) -- (0.11)
------- -------- --------- ------- ------
Total distributions -- (0.62) (0.73) (0.02) (0.23)
------- -------- --------- ------- ------
NET ASSET VALUE, END OF PERIOD $15.92 $11.33 $11.01 $11.77 $10.47
======= ======= ======= ======= ======
TOTAL RETURN 40.51% 8.04% (0.08%) 12.61% 6.98%(+)
Net assets, end of period (000's) $404,223 $218,551 $203,776 $189,010 $88,638
Ratio of operating expenses to average net assets 1.21% 1.16% 1.12% 1.11% 1.47%(A)
Ratio of net investment income to average net assets 0.73% 0.61% 2.08% 1.82% 0.71%(A)
Portfolio turnover rate 147% 150% 166% 148% 112%(A)
</TABLE>
* Commencement of operations
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
39
<PAGE> 82
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL STOCK
TRUST
--------------------------------------
YEARS ENDED DECEMBER 31, 01/01/1997 *
------------------------ TO
1999 1998 12/31/97
--------- --------- -----------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.98 $11.47 $11.47
Income from investment operations:
Net investment income 0.08 0.09 0.04
Net realized and unrealized gain on investments and
foreign currency transactions 3.76 1.62 0.12
--------- -------- --------
Total from investment operations 3.84 1.71 0.16
Less distributions:
Dividends from net investment income (0.07) (0.09) (0.03)
Distributions from capital gains (1.32) (0.11) (0.13)
--------- -------- --------
Total Distributions (1.39) (0.20) (0.16)
--------- -------- --------
NET ASSET VALUE, END OF PERIOD $15.43 $12.98 $11.47
========= ======== ========
Total return 29.71% 14.91% 1.38%
Net assets, end of period (000's) $231,729 $234,103 $145,253
Ratio of operating expenses to average net assets 1.25% 1.25% 1.38%
Ratio of net investment income to average net assets 0.58% 0.82% 0.56%
Portfolio turnover rate 39% 27% 43%
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
40
<PAGE> 83
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
VALUE TRUST
--------------
05/01/1999*
TO
12/31/1999
--------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.50
Income from investment operations:
Net investment income 0.08
Net realized and unrealized gain on investments and foreign currency transactions 0.40
--------------
Total from investment operations 0.48
--------------
NET ASSET VALUE, END OF PERIOD $12.98
==============
TOTAL RETURN 3.84%(+)
Net assets, end of period (000's) $100,970
Ratio of operating expenses to average net assets 1.23%(A)
Ratio of net investment income to average net assets 1.27%(A)
Portfolio turnover rate 4%(A)
</TABLE>
* Commencement of operations
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
41
<PAGE> 84
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP BLEND TRUST
(FORMERLY, EQUITY TRUST)
--------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $19.48 $21.50 $22.62 $20.79 $14.66
Income from investment operations:
Net investment income 0.07 0.08 0.08 0.13 0.10
Net realized and unrealized gain on
investments and foreign currency transactions 4.75 2.13 3.31 3.77 6.14
------ ------ ------- ------- ------
Total from investment operations 4.82 2.21 3.39 3.90 6.24
Less distributions:
Dividends from net investment income (0.09) (0.07) (0.14) (0.09) (0.11)
Distributions from capital gains (2.31) (4.16) (4.37) (1.98) --
------ ------ ------- ------- ------
Total distributions (2.40) (4.23) (4.51) (2.07) (0.11)
------ ------ ------- ------- ------
NET ASSET VALUE, END OF PERIOD $21.90 $19.48 $21.50 $22.62 $20.79
====== ====== ======= ======= ======
TOTAL RETURN 27.75% 9.41% 19.25% 20.14% 42.79%
Net assets, end of period (000's) $1,673,228 $1,556,169 $1,521,382 $1,345,461 $988,800
Ratio of operating expenses to average net assets 0.88% 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income to average net assets 0.34% 0.42% 0.35% 0.71% 0.63%
Portfolio turnover rate 129% 93% 224% 223% 88%
</TABLE>
The accompanying notes are an integral part of the financial statements.
42
<PAGE> 85
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY
VALUE TRUST
------------------------------------------------------
YEARS ENDED DECEMBER 31, 10/01/1997*
----------------------------- TO
1999 1998 12/31/1997
-------- -------- ----------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.37 $11.94 $12.50
Income from investment operations:
Net investment income 0.02 0.01 0.01
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.89 (0.57) (0.57)
------- -------- -------
Total from investment operations 0.91 (0.56) (0.56)
------- -------- -------
Less distributions:
Dividends from net investment income (0.01) (0.01) --
------- -------- -------
NET ASSET VALUE, END OF PERIOD $12.27 $11.37 $11.94
======= ======== =======
Total return 8.00% (4.72%) (4.48%)+
Net assets, end of period (000's) $89,167 $162,335 $67,091
Ratio of operating expenses to average net assets 1.22% 1.23% 1.19%(A)
Ratio of net investment income to average net assets 0.15% 0.16% 0.54%(A)
Portfolio turnover rate 142% 131% 81%(A)
</TABLE>
* Commencement of operations
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
43
<PAGE> 86
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL EQUITY TRUST
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $20.38 $19.38 $17.84 $16.10 $15.74
Income from investment operations:
Net investment income 0.23 0.17 0.19 0.12 0.29
Net realized and unrealized gain on
investments and foreign currency transactions 0.38 2.27 3.16 1.89 0.84
-------- -------- -------- -------- --------
Total from investment operations 0.61 2.44 3.35 2.01 1.13
Less distributions:
Dividends from net investment income (0.13) (0.36) (0.27) (0.27) (0.08)
Distributions from capital gains (2.07) (1.08) (1.54) -- (0.69)
-------- -------- -------- -------- --------
Total distributions (2.20) (1.44) (1.81) (0.27) (0.77)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $18.79 $20.38 $19.38 $17.84 $16.10
======== ======== ======== ======== ========
Total return 3.66% 12.24% 20.80% 12.62% 7.68%
Net assets, end of period (000's) $837,728 $928,564 $868,413 $726,842 $648,183
Ratio of operating expenses to average net assets 1.06% 1.01% 1.01% 1.01% 1.05%
Ratio of net investment income to average net assets 1.14% 0.84% 1.02% 0.78% 0.61%
Portfolio turnover rate 43%(A) 32% 33% 169% 63%
</TABLE>
(A) The portfolio turnover rate does not include the assets acquired in the
merger.
The accompanying notes are an integral part of the financial statements.
44
<PAGE> 87
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH TRUST
---------------------------------------------------------------
YEARS ENDED DECEMBER 31, 07/15/1996*
------------------------------------------ TO
1999 1998 1997 12/31/1996
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $20.50 $17.21 $13.73 $12.50
Income from investment operations:
Net investment income (loss) (0.04) 0.06 0.08 0.09
Net realized and unrealized gain on
investments and foreign currency transactions 7.46 4.00 3.40 1.23
-------- -------- -------- -------
Total from investment operations 7.42 4.06 3.48 1.32
Less distributions:
Dividends from net investment income (0.05) (0.07) (0.09)
Distribution from capital gains (0.99) (0.70) -- --
-------- -------- -------- -------
Total distributions (1.04) (0.77) -- --
-------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $26.88 $20.50 $17.21 $13.73
======== ======== ======== =======
Total return 37.20% 23.95% 25.35% 10.53%+
Net assets, end of period (000's) $642,948 $299,994 $167,388 $56,807
Ratio of operating expenses to average net assets 0.90% 0.90% 0.95% 1.01%(A)
Ratio of net investment income to average net assets (0.18%) 0.42% 0.74% 2.57%(A)
Portfolio turnover rate 156% 136% 179% 215%(A)
</TABLE>
* Commencement of operations
+ Non-Annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
45
<PAGE> 88
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE CAP GROWTH TRUST
(FORMERLY, AGGRESSIVE ASSET ALLOCATION TRUST)
------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $15.26 $14.36 $13.45 $12.85 $11.17
Income from investment operations:
Net investment income 0.06 0.24 0.29 0.36 0.35
Net realized and unrealized gain on
investments and foreign currency transactions 3.52 2.43 2.01 1.21 2.07
-------- -------- -------- -------- --------
Total from investment operations 3.58 2.67 2.30 1.57 2.42
Less distributions:
Dividends from net investment income (0.23) (0.29) (0.38) (0.33) (0.33)
Distributions from capital gains (1.38) (1.48) (1.01) (0.64) (0.41)
-------- -------- -------- -------- --------
Total distributions (1.61) (1.77) (1.39) (0.97) (0.74)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $17.23 $15.26 $14.36 $13.45 $12.85
======== ======== ======== ======== ========
Total return 25.28% 19.12% 19.09% 13.00% 22.77%
Net assets, end of period (000's) $402,585 $262,882 $243,533 $226,699 $211,757
Ratio of operating expenses to average net assets 0.94% 0.88% 0.90% 0.90% 0.91%
Ratio of net investment income to average net assets 0.45% 1.58% 1.99% 2.73% 2.76%
Portfolio turnover rate 164% 64% 91% 75% 111%
</TABLE>
The accompanying notes are an integral part of the financial statements.
46
<PAGE> 89
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUANTITATIVE EQUITY TRUST
-------------------------
YEARS ENDED DECEMBER 31,
-------------------------
1999 1998 1997 1996 1995
------- ------ ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $25.22 $22.50 $17.33 $17.27 $13.36
Income from investment operations:
Net investment income 0.10 0.20 0.26 0.26 0.24
Net realized and unrealized gain on
investments and foreign currency transactions 5.26 5.42 4.91 2.83 3.67
----- ----- ----- ----- -----
Total from investment operations 5.36 5.62 5.17 3.09 3.91
Less distributions:
Dividends from net investment income (0.18) (0.25) -- (0.50) --
Distributions from capital gains (2.24) (2.65) -- (2.51) --
Distributions in excess of capital gains -- -- -- (0.02) --
----- ----- ----- ----- -----
Total distributions (2.42) (2.90) -- (3.03) --
----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $28.16 $25.22 $22.50 $17.33 $17.27
====== ====== ====== ====== ======
TOTAL RETURN (A) 22.30% 26.35% 29.83% 17.92% 29.23%
Net assets, end of period (000's) $431,909 $254,475 $167,530 $91,900 $60,996
Ratio of operating expenses to average net assets (B) 0.76% 0.76% 0.50% 0.50% 0.50%
Ratio of net investment income to average net assets 0.57% 1.06% 1.50% 1.81% 1.76%
Portfolio turnover rate 159% 225% 114% 105% 109%
</TABLE>
(A) The total return for the year ended December 31, 1997 would have been lower
had operating expenses not been reduced.
(B) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.77% for the year ended December 31, 1997.
The accompanying notes are an integral part of the financial statements.
47
<PAGE> 90
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BLUE CHIP GROWTH TRUST
-----------------------
YEARS ENDED DECEMBER 31,
------------------------
1999 1998 1997 1996 1995
-------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $18.92 $15.00 $14.31 $11.40 $9.05
Income from investment operations:
Net investment income 0.01 0.05 0.09 0.03 0.03
Net realized and unrealized gain on
investments and foreign currency
transactions 3.58 4.19 3.13 2.92 2.36
------ ------ ------- ------- -------
Total from investment operations 3.59 4.24 3.22 2.95 2.39
Less distributions:
Dividends from net investment income (0.05) (0.08) (0.03) (0.04) (0.04)
Distributions from capital gains (0.82) (0.24) (2.50) - -
------ ------ ------- ------- -------
Total distributions (0.87) (0.32) (2.53) (0.04) (0.04)
------ ------ ------- ------- -------
NET ASSET VALUE, END OF PERIOD $21.64 $18.92 $15.00 $14.31 $11.40
====== ====== ======= ======= =======
TOTAL RETURN (A) 19.43% 28.49% 26.94% 25.90% 26.53%
Net assets, end of period (000's) $1,734,233 $1,141,162 $708,807 $422,571 $277,674
Ratio of operating expenses to average net assets (B) 0.94% 0.97% 0.975% 0.975% 0.975%
Ratio of net investment income to average net assets 0.06% 0.37% 0.74% 0.26% 0.42%
Portfolio turnover rate 42% 42% 37% 159% 57%
</TABLE>
(A) The total return for the years ended December 31,1996 and 1995 would have
been lower had operating expenses not been reduced.
(B) The ratio of operating expenses, before reimbursement from the investment
adviser and subadviser, was 1.02% and 1.03% for the years ended
December 31, 1996 and 1995 respectively.
The accompanying notes are an integral part of the financial statements.
48
<PAGE> 91
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
REAL ESTATE SECURITIES TRUST
YEARS ENDED DECEMBER 31,
------------------------------------------------------------
1999* 1998 1997 1996 1995
------- ------ ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $14.76 $20.07 $16.95 $15.10 $13.34
Income from investment operations:
Net investment income 0.78 0.78 0.80 0.74 0.67
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (1.94) (3.72) 2.32 4.31 1.35
------- ------ ------- ------- -------
Total from investment operations (1.16) (2.94) 3.12 5.05 2.02
Less distributions:
Dividends from net investment income (0.71) (0.53) - (1.39) (0.26)
Distributions from capital gains - (1.84) - (1.81) -
------- ------ ------- ------- -------
Total distributions (0.71) (2.37) - (3.20) (0.26)
NET ASSET VALUE, END OF PERIOD $12.89 $14.76 $20.07 $16.95 $15.10
======= ====== ======= ======= =======
TOTAL RETURN (A) (8.00%) (16.44%) 18.41% 34.69% 15.14%
Net assets, end of period (000's) $196,756 $161,832 $161,759 $76,220 $52,440
Ratio of operating expenses to average net assets (B) 0.77% 0.76% 0.50% 0.50% 0.50%
Ratio of net investment income to average net assets 5.88% 5.57% 5.42% 5.22% 5.06%
Portfolio turnover rate 201% 122% 148% 231% 136%
</TABLE>
* Net investment income per share was calculated using the average shares
method for fiscal year 1999.
(A) The total return for the year ended December 31, 1997 would have been
lower had operating expenses not been reduced.
(B) The ratio of operating expenses, before reimbursement from the investment
adviser, was 0.77% for the year ended December 31, 1997.
The accompanying notes are an integral part of the financial statements.
49
<PAGE> 92
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
VALUE TRUST
--------------------------------------
YEARS ENDED DECEMBER 31, 01/01/1997(*)
------------------------ TO
1999 1998 12/31/1997
------- ------- ----------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $14.06 $14.81 $12.50
Income from investment operations:
Net investment income 0.20 0.18 0.10
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (0.59) (0.45) 2.67
------- ------- -------
Total from investment operations (0.39) (0.27) 2.77
Less distributions:
Dividends from net investment income (0.20) (0.18) (0.10)
Distributions from capital gains (0.24) (0.30) (0.36)
------- ------- -------
Total distributions (0.44) (0.48) (0.46)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $13.23 $14.06 $14.81
======= ======= =======
TOTAL RETURN (2.79%) (1.72%) 22.14%
Net assets, end of period (000's) $146,279 $255,554 $144,672
Ratio of operating expenses to average net assets 0.87% 0.85% 0.96%
Ratio of net investment income to average net assets 1.12% 1.50% 1.50%
Portfolio turnover rate 54% 45% 43%
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
50
<PAGE> 93
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INDEX TRUST
---------------------------------------------------
YEARS ENDED DECEMBER 31, 02/14/1996*
-------------------------- TO
1999 1998 1997 12/31/1996
---- ---- ---- ----------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $15.43 $12.48 $10.69 $10.00
Income from investment operations:
Net investment income 0.17 0.18 0.32 0.19
Net realized and unrealized gain on investments 3.00 3.36 3.26 1.29
-------- ------- ------- ------
Total from investment operations 3.17 3.54 3.58 1.48
Less distributions:
Dividends from net investment income (0.17) (0.18) (0.32) (0.19)
Distributions from capital gains (0.30) (0.41) (1.47) (0.60)
-------- ------- ------- -------
Total distributions (0.47) (0.59) (1.79) (0.79)
-------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD $18.13 $15.43 $12.48 $10.69
======== ======= ======= ======
TOTAL RETURN (B) 20.58% 28.56% 33.53% 14.86%(+)
Net assets, end of period (000's) $114,775 $63,292 $27,075 $7,818
Ratio of operating expenses to average net assets (C) 0.40% 0.40% 0.40% 0.40%(A)
Ratio of net investment income to average net assets 1.17% 1.70% 3.64% 4.74%(A)
Portfolio turnover rate 10% 3% 7% 27%(A)
</TABLE>
- ----------------------------------
* Commencement of operations
(A) Annualized
(B) The total return for the years ended December 31, 1999, 1998 and 1997 would
have been lower had operating expenses not been reduced.
(C) The ratios of operating expenses, before reimbursement from the investment
adviser, were 0.41%, 0.55% and 0.57% for the years ended December 31, 1999,
1998 and 1997, respectively.
The accompanying notes are an integral part of the financial statements.
51
<PAGE> 94
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME TRUST
----------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------
1999 1998 1997 1996 1995
----- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $28.43 $23.89 $19.38 $16.37 $13.04
Income from investment operations:
Net investment income 0.17 0.19 0.22 0.22 0.27
Net realized and unrealized gain on
investments and foreign currency transactions 5.12 5.98 5.73 3.41 3.45
------ ------ ------ ------ ------
Total from investment operations 5.29 6.17 5.95 3.63 3.72
Less distributions:
Dividends from net investment income (0.19) (0.22) (0.24) (0.26) (0.26)
Distributions from capital gains (0.86) (1.41) (1.20) (0.36) (0.13)
------ ------ ------ ------ ------
Total distributions (1.05) (1.63) (1.44) (0.62) (0.39)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $32.67 $28.43 $23.89 $19.38 $16.37
====== ====== ====== ====== ======
TOTAL RETURN 18.87% 26.52% 32.83% 22.84% 29.20%
Net assets, end of period (000's) $3,187,220 $2,290,118 $1,605,387 $1,033,738 $669,387
Ratio of operating expenses to average net assets 0.80% 0.79% 0.79% 0.80% 0.80%
Ratio of net investment income to average net assets 0.63% 0.85% 1.14% 1.56% 2.23%
Portfolio turnover rate 19% 16% 34% 49% 39%
</TABLE>
The accompanying notes are an integral part of the financial statements.
52
<PAGE> 95
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. LARGE CAP
VALUE TRUST
------------
05/01/1999*
TO
12/31/1999
------------
<S> <C>
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 0.30
--------
Total from investment operations 0.34
NET ASSET VALUE, END OF PERIOD $12.84
========
Total return 2.72%+
Net assets, end of period (000's) $210,725
Ratio of operating expenses to average net assets 0.945%(A)
Ratio of net investment income to average net assets 0.64%(A)
Portfolio turnover rate 30%(A)
</TABLE>
* Commencement of operations
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
53
<PAGE> 96
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY-INCOME TRUST
----------------------------------------------------------
YEARS ENDED DECEMBER 31,
----------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $17.78 $17.24 $15.41 $13.81 $11.33
Income from investment operations:
Net investment income 0.35 0.34 0.34 0.21 0.17
Net realized and unrealized gain on
investments and foreign currency transactions 0.25 1.26 3.68 2.39 2.49
---------- ---------- -------- -------- --------
Total from investment operations 0.60 1.60 4.02 2.60 2.66
Less distributions:
Dividends from net investment income (0.37) (0.33) (0.21) (0.16) (0.08)
Distributions from capital gains (0.96) (0.73) (1.98) (0.84) (0.10)
---------- ---------- -------- -------- --------
Total distributions (1.33) (1.06) (2.19) (1.00) (0.18)
---------- ---------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $17.05 $17.78 $17.24 $15.41 $13.81
========== ========== ======== ======== ========
TOTAL RETURN 3.40% 9.21% 29.71% 19.85% 23.69%
Net assets, end of period (000's) $1,011,260 $1,088,342 $941,705 $599,486 $396,827
Ratio of operating expenses to average net assets 0.91% 0.85% 0.85% 0.85% 0.85%
Ratio of net investment income to average net assets 1.83% 2.13% 2.47% 1.78% 1.63%
Portfolio turnover rate 30% 21% 25% 158% 52%
</TABLE>
The accompanying notes are an integral part of the financial statements.
54
<PAGE> 97
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME & VALUE TRUST
(FORMERLY, MODERATE ASSET ALLOCATION TRUST)
YEARS ENDED DECEMBER 31,
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.36 $12.95 $12.49 $12.39 $10.79
Income from investment operations:
Net investment income 0.32 0.40 0.48 0.54 0.50
Net realized and unrealized gain
on investments and foreign currency transactions 0.77 1.51 1.29 0.60 1.65
------ ------ ------ ------ ------
Total from investment operations 1.09 1.91 1.77 1.14 2.15
Less distributions:
Dividends from net investment income (0.40) (0.46) (0.57) (0.52) (0.45)
Distributions from capital gains (1.14) (1.04) (0.74) (0.52) (0.10)
------ ------ ------ ------ ------
Total distributions (1.54) (1.50) (1.31) (1.04) (0.55)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.91 $13.36 $12.95 $12.49 $12.39
====== ====== ====== ====== ======
TOTAL RETURN 8.52% 15.27% 15.87% 9.96% 20.68%
Net assets, end of period (000's) $639,824 $618,011 $609,142 $624,821 $650,136
Ratio of operating expenses to average net assets 0.86% 0.84% 0.85% 0.84% 0.84%
Ratio of net investment income to average net assets 2.39% 2.89% 3.37% 4.17% 4.09%
Portfolio turnover rate 165% 85% 78% 78% 129%
</TABLE>
The accompanying notes are an integral part of the financial statements.
55
<PAGE> 98
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED TRUST
--------------------------------------
YEARS ENDED DECEMBER 31, 01/01/1997*
------------------------ TO
1999+ 1998 12/31/97
------- ------ --------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $19.40 $19.33 $16.41
Income from investment operations:
Net investment income 0.55 0.41 0.51
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (0.85) 2.23 2.41
Total from investment operations (0.30) 2.64 2.92
Less distributions:
Dividends from net investment income (0.37) (0.48) -
Distributions from capital gains (0.91) (2.09) -
Total distributions (1.28) (2.57) -
NET ASSET VALUE, END OF PERIOD $17.82 $19.40 $19.33
TOTAL RETURN (1.65%) 14.25% 17.79%
Net assets, end of period (000's) $258,158 $254,454 $177,045
Ratio of operating expenses to average net assets 0.87% 0.87% 0.88%
Ratio of net investment income to average net assets 2.98% 2.71% 2.97%
Portfolio turnover rate 215% 199% 219%
</TABLE>
+ Net investment income per share was calculated using the average shares
method for fiscal year 1999.
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
56
<PAGE> 99
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH YIELD TRUST
-----------------------------------------
YEARS ENDED DECEMBER 31, 01/01/1997*
------------------------ TO
1999+ 1998 12/31/97
------ ------- ---------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.92 $13.56 $12.50
Income from investment operations:
Net investment income 1.14 0.91 0.46
Net realized and unrealized gain (loss)
on investments and foreign currency transactions (0.12) (0.53) 1.13
------ ------ ------
Total from investment operations 1.02 0.38 1.59
Less distributions:
Dividends from net investment income (1.11) (0.89) (0.46)
Distributions from capital gains - (0.13) (0.07)
------ ------ ------
Total distributions (1.11) (1.02) (0.53)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.83 $12.92 $13.56
====== ====== ======
TOTAL RETURN 8.00% 2.78% 12.68%
Net assets, end of period (000's) $241,054 $192,354 $92,748
Ratio of operating expenses to average net assets 0.84% 0.84% 0.89%
Ratio of net investment income to average net assets 8.59% 8.34% 7.40%
Portfolio turnover rate 62% 94% 75%
</TABLE>
+ Net investment income per share was calculated using the average shares
method for fiscal year 1999.
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
57
<PAGE> 100
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC BOND TRUST
----------------------------------------------------------
YEARS ENDED DECEMBER 31,
1999 1998 1997 1996 1995
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.72 $12.38 $11.94 $11.26 $9.91
Income from investment operations:
Net investment income 1.00 0.76 0.67 0.62 0.78
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (0.75) (0.59) 0.57 0.92 1.04
------ ------ ------ ------ ------
Total from investment operations 0.25 0.17 1.24 1.54 1.82
Less distributions:
Dividends from net investment income (0.83) (0.71) (0.71) (0.86) (0.47)
Distributions from capital gains - (0.12) (0.09) - -
------ ------ ------ ------ ------
Total distributions (0.83) (0.83) (0.80) (0.86) (0.47)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $11.14 $11.72 $12.38 $11.94 $11.26
====== ====== ====== ====== ======
TOTAL RETURN 2.22% 1.31% 10.98% 14.70% 19.22%
Net assets, end of period (000's) $368,380 $443,414 $365,590 $221,277 $122,704
Ratio of operating expenses to average net assets 0.87% 0.85% 0.87% 0.86% 0.92%
Ratio of net investment income to average net assets 8.15% 7.59% 7.54% 8.20% 8.76%
Portfolio turnover rate 107% 209% 131% 165% 181%
</TABLE>
The accompanying notes are an integral part of the financial statements.
58
<PAGE> 101
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL BOND TRUST
(FORMERLY, GLOBAL GOVERNMENT BOND TRUST)
YEARS ENDED DECEMBER 31,
------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.73 $14.07 $14.97 $14.56 $12.47
Income from investment operations:
Net investment income 0.67 0.81 0.93 0.93 1.16
Net realized and unrealized gain (loss)
on investments and foreign currency transactions (1.55) 0.20 (0.57) 0.79 1.62
------ ------ ------ ----- -----
Total from investment operations (0.88) 1.01 0.36 1.72 2.78
Less distributions
Dividends from net investment income (1.25) (0.95) (1.23) (1.31) (0.69)
Distributions from capital gains - (0.40) (0.03) - -
------ ------ ------ ------ ------
Total distributions (1.25) (1.35) (1.26) (1.31) (0.69)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $11.60 $13.73 $14.07 $14.97 $14.56
====== ====== ====== ====== ======
TOTAL RETURN (6.67%) 7.61% 2.95% 13.01% 23.18%
Net assets, end of period (000's) $145,992 $196,990 $216,117 $249,793 $235,243
Ratio of operating expenses to average net assets 0.98% 0.94% 0.93% 0.90% 0.93%
Ratio of net investment income to average net assets 4.38% 5.46% 5.87% 6.38% 6.83%
Portfolio turnover rate 471% 140% 160% 167% 171%
</TABLE>
The accompanying notes are an integral part of the financial statements.
59
<PAGE> 102
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN
TRUST
05/01/1999*
TO
12/31/1999
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.50
Income from investment operations:
Net investment income 0.35
Net realized and unrealized (loss) on investments and foreign currency transactions (0.48)
--------
Total from investment operations (0.13)
--------
NET ASSET VALUE, END OF PERIOD $12.37
========
Total return (1.04%)+
Net assets, end of period (000's) $240,016
Ratio of operating expenses to average net assets 0.835%(A)
Ratio of net investment income to average net assets 5.72%(A)
Portfolio turnover rate 95%(A)
</TABLE>
- ----------------------------
* Commencement of operations
+ Non-annualized
(A) Annualized
The accompanying notes are an integral part of the financial statements.
60
<PAGE> 103
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT QUALITY BOND TRUST
YEARS ENDED DECEMBER 31,
---------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.46 $12.13 $11.89 $12.32 $11.01
Income from investment operations:
Net investment income 0.81 0.62 0.77 0.77 0.77
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (1.02) 0.40 0.30 (0.50) 1.28
------ ------ ------ ------ ------
Total from investment operations (0.21) 1.02 1.07 0.27 2.05
Less distributions:
Dividends from net investment income (0.65) (0.69) (0.83) (0.70) (0.74)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $11.60 $12.46 $12.13 $11.89 $12.32
====== ====== ====== ====== ======
Total return (1.79%) 8.73% 9.75% 2.58% 19.49%
Net assets, end of period (000's) $288,594 $312,111 $188,545 $152,961 $143,103
Ratio of operating expenses to average net assets 0.77% 0.72% 0.74% 0.73% 0.74%
Ratio of net investment income to average net assets 6.79% 6.89% 7.15% 6.95% 6.91%
Portfolio turnover rate 36%(A) 41% 47% 68% 137%
</TABLE>
(A) The portfolio turnover rate does not include the assets acquired in the
merger.
The accompanying notes are an integral part of the financial statements.
61
<PAGE> 104
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED BOND TRUST
(FORMERLY, CONSERVATIVE ASSET ALLOCATION TRUST)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.83 $11.78 $11.64 $11.59 $10.34
Income from investment operations:
Net investment income 0.56 0.51 0.54 0.57 0.54
Net realized and unrealized gain (loss)
on investments and foreign currency transactions (0.46) 0.69 0.67 0.20 1.26
------ ------ ------ ------ ------
Total from investment operations 0.10 1.20 1.21 0.77 1.80
Less distributions:
Dividends from net investment income (0.49) (0.55) (0.59) (0.56) (0.55)
Distributions from capital gains (0.62) (0.60) (0.48) (0.16) -
------ ------ ------ ------ ------
Total distributions (1.11) (1.15) (1.07) (0.72) (0.55)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $10.82 $11.83 $11.78 $11.64 $11.59
====== ====== ====== ====== ======
TOTAL RETURN 0.72% 10.68% 11.44% 7.03% 18.07%
Net assets, end of period (000's) $218,868 $196,800 $204,348 $208,466 $224,390
Ratio of operating expenses to average net assets 0.84% 0.89% 0.89% 0.87% 0.87%
Ratio of net investment income to average net assets 5.18% 4.03% 4.39% 4.59% 4.68%
Portfolio turnover rate 173% 125% 86% 73% 110%
</TABLE>
The accompanying notes are an integral part of the financial statements.
62
<PAGE> 105
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES TRUST
---------------------------------------------------
YEARS ENDED DECEMBER 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.82 $ 13.50 $ 13.32 $ 13.65 $ 12.64
Income from investment operations:
Net investment income 0.74 0.79 0.75 0.83 0.89
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (0.77) 0.18 0.31 (0.41) 0.99
-------- -------- -------- -------- --------
Total from investment operations (0.03) 0.97 1.06 0.42 1.88
Less distributions:
Dividends from net investment income (0.55) (0.65) (0.88) (0.75) (0.87)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $13.24 $13.82 $13.50 $13.32 $13.65
======== ======== ======== ======== ========
TOTAL RETURN (0.23%) 7.49% 8.47% 3.38% 15.57%
Net assets, end of period (000's) $363,269 $363,615 $251,277 $204,053 $216,788
Ratio of operating expenses to average net assets 0.72% 0.72% 0.72% 0.71% 0.71%
Ratio of net investment income to average net assets 6.03% 5.92% 6.27% 6.36% 6.46%
Portfolio turnover rate 40% 287% 110% 178% 212%
</TABLE>
The accompanying notes are an integral part of the financial statements.
63
<PAGE> 106
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET TRUST
----------------------------------------------------
YEARS ENDED DECEMBER 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00 $10.00 $10.00 $10.00 $10.00
Income from investment operations:
Net investment income 0.45 0.50 0.50 0.49 0.55
Less distributions:
Dividends from net investment income (0.45) (0.50) (0.50) (0.49) (0.55)
---------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $10.00 $10.00 $10.00 $10.00 $10.00
========== ======== ======== ======== ========
TOTAL RETURN 4.60% 5.03% 5.15% 5.05% 5.62%
Net assets, end of period (000's) $1,084,859 $609,837 $439,714 $363,566 $258,117
Ratio of operating expenses to average net assets 0.55% 0.55% 0.54% 0.55% 0.54%
Ratio of net investment income to average net assets 4.54% 4.94% 5.03% 4.97% 5.48%
</TABLE>
The accompanying notes are an integral part of the financial statements.
64
<PAGE> 107
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFESTYLE
AGGRESSIVE 1000 TRUST
-----------------------------------------
YEARS ENDED DECEMBER 31, 01/07/1997*
------------------------ TO
1999 1998 12/31/1997
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.39 $13.47 $12.50
Income from investment operations:
Net investment income 0.08 0.07 0.05
Net realized and unrealized gain on investments 1.77 0.62 1.26
------ ------ ------
Total from investment operations 1.85 0.69 1.31
Less distributions:
Dividends from net investment income (0.08) (0.07) (0.05)
Distributions from capital gains (0.62) (0.70) (0.29)
------ ------ ------
Total distributions (0.70) (0.77) (0.34)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.54 $13.39 $13.47
====== ====== ======
TOTAL RETURN (B) 14.61% 4.86% 10.89%(+)
Net assets, end of period (000's) $93,073 $80,525 $49,105
Ratio of operating expenses to average net assets (C) 0.00% 0.00% 0.00%(A)
Ratio of net investment income to average net assets 0.64% 0.48% 1.29%(A)
Portfolio turnover rate 136% 59% 67%(A)
</TABLE>
* Commencement of operations
+ Non-annualized
(A) Annualized
(B) The total return for the periods ended December 31, 1999, 1998 and 1997
would have been lower had operating expenses not been reduced.
(C) The ratios of operating expenses, before reimbursement from the investment
adviser, was 0.03%, 0.02% and 0.03% for the periods ended December 31,
1999, 1998 and 1997, respectively.
The accompanying notes are an integral part of the financial statements.
65
<PAGE> 108
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFESTYLE
GROWTH 820 TRUST
-------------------------------------
YEARS ENDED DECEMBER 31, 01/07/1997*
------------------------ TO
1999 1998 12/31/1997
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.78 $13.77 $12.50
Income from investment operations:
Net investment income 0.23 0.24 0.30
Net realized and unrealized gain on investments 1.94 0.63 1.38
------ ------ ------
Total from investment operations 2.17 0.87 1.68
Less distributions:
Dividends from net investment income (0.23) (0.24) (0.30)
Distributions from capital gains (0.54) (0.62) (0.11)
------ ------ ------
Total distributions (0.77) (0.86) (0.41)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $15.18 $13.78 $13.77
====== ====== ======
TOTAL RETURN (B) 16.56% 6.20% 13.84% +
Net assets, end of period (000's) $414,257 $380,309 $217,158
Ratio of operating expenses to average net assets (C) 0.00% 0.00% 0.00% (A)
Ratio of net investment income to average net assets 1.73% 1.74% 2.44% (A)
Portfolio turnover rate 127% 49% 51% (A)
</TABLE>
* Commencement of operations
+ Non-annualized
(A) Annualized
(B) The total return for the periods ended December 31, 1999, 1998 and 1997
would have been lower had operating expenses not been reduced.
(C) The ratios of operating expenses, before reimbursement from the investment
adviser, was 0.04%, 0.02% and 0.03% for the periods ended December 31,
1999, 1998 and 1997 respectively.
The accompanying notes are an integral part of the financial statements.
66
<PAGE> 109
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFESTYLE
BALANCED 640 TRUST
--------------------------------------------
YEARS ENDED DECEMBER 31, 01/07/1997(*)
TO
1999 1998 12/31/1997
----- ----- ----------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.49 $13.56 $12.50
Income from investment operations:
Net investment income 0.39 0.31 0.50
Net realized and unrealized gain on investments 1.20 0.47 1.19
----- ----- -----
Total from investment operations 1.59 0.78 1.69
Less distributions
Dividends from net investment income (0.39) (0.31) (0.50)
Distributions from capital gains (0.45) (0.54) (0.13)
----- ----- -----
Total distributions (0.84) (0.85) (0.63)
----- ----- -----
NET ASSET VALUE, END OF PERIOD $14.24 $13.49 $13.56
===== ===== =====
TOTAL RETURN (B) 12.42% 5.72% 14.11%(+)
Net assets, end of period (000's) $416,706 $377,531 186,653
Ratio of operating expenses to average net assets (C) 0.00% 0.00% 0.00%(A)
Ratio of net investment income to average net assets 2.93% 2.21% 3.24%(A)
Portfolio turnover rate 126% 52% 44%(A)
</TABLE>
(*) Commencement of operations
(+) Non-annualized
(A) Annualized
(B) The total return for the periods ended December 31, 1999, 1998 and 1997
would have been lower had operating expenses not been reduced.
(C) The ratios of operating expenses, before reimbursement from the investment
adviser, was 0.03%, 0.02% and 0.03% for the periods ended December 31,
1999, 1998 and 1997, respectively.
The accompanying notes are an integral part of the financial statements.
67
<PAGE> 110
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFESTYLE
MODERATE 460 TRUST
-----------------------------------------
YEARS ENDED DECEMBER 31, 01/07/1997(*)
TO
1999 1998 12/31/1997
------- -------- ------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.91 $13.35 $12.50
Income from investment operations:
Net investment income 0.41 0.45 0.65
Net realized and unrealized gain on investments 0.65 0.84 0.98
------- -------- --------
Total from investment operations 1.06 1.29 1.63
Less distributions:
Dividends from net investment income (0.41) (0.45) (0.65)
Distributions from capital gains (0.43) (0.28) (0.13)
------- -------- --------
Total distributions (0.84) (0.73) (0.78)
------- -------- --------
NET ASSET VALUE, END OF PERIOD $14.13 $13.91 $13.35
======= ======== ========
TOTAL RETURN (B) 7.89% 9.76% 13.7%(+)
Net assets, end of period (000's) $167,500 $138,128 $52,746
Ratio of operating expenses to average net assets (C) 0.00% 0.00% 0.00%(A)
Ratio of net investment income to average net assets 2.92% 3.03% 3.91%(A)
Portfolio turnover rate 109% 45% 39%(A)
</TABLE>
(*) Commencement of operations
(+) Non-annualized
(A) Annualized
(B) The total return for the periods ended December 31, 1999, 1998 and 1997
would have been lower had operating expenses not been reduced.
(C) The ratios of operating expenses, before reimbursement from the investment
adviser, was 0.04%, 0.05% and 0.03% for the periods ended December 31,
1999, 1998 and 1997, respectively.
The accompanying notes are an integral part of the financial statements.
68
<PAGE> 111
MANUFACTURERS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIFESTYLE
CONSERVATIVE 280 TRUST
---------------------------------------
YEARS ENDED DECEMBER 31, 01/07/1997(*)
TO
1999 1998 12/31/1997
-------- -------- ------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.53 $13.01 $12.50
Income from investment operations:
Net investment income 0.60 0.50 0.76
Net realized and unrealized gain on investments (0.05) 0.79 0.67
-------- ------ ------
Total from investment operations 0.55 1.29 1.43
Less distributions:
Dividends from net investment income (0.60) (0.50) (0.76)
Distributions from capital gains (0.33) (0.27) (0.16)
-------- ------ ------
Total distributions (0.93) (0.77) (0.92)
-------- ------ ------
NET ASSET VALUE, END OF PERIOD $13.15 $13.53 $13.01
======= ====== ======
TOTAL RETURN (B) 4.21% 10.20% 12.15%(+)
Net assets, end of period (000's) $106,435 $78,404 $19,750
Ratio of operating expenses to average net assets (C) 0.00% 0.00% 0.00%(A)
Ratio of net investment income to average net assets 4.40% 2.98% 3.95%(A)
Portfolio turnover rate 93% 32% 38%(A)
</TABLE>
(*) Commencement of operations
(+) Non-annualized
(A) Annualized
(B) The total return for the periods ended December 31, 1999, 1998 and 1997
would have been lower had operating expenses not been reduced.
(C) The ratios of operating expenses, before reimbursement from the investment
adviser, was 0.03%, 0.03% and 0.03% for the periods ended December 31,
1999, 1998 and 1997, respectively.
The accompanying notes are an integral part of the financial statements.
69
<PAGE> 112
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
PACIFIC RIM EMERGING MARKETS TRUST
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS - 75.01%
AUSTRALIA - 5.34%
Australia & New Zealand Bank
Group * 37,500 $ 272,800
Broken Hill Proprietary
Company * 44,000 577,749
Cable & Wireless Optus, Ltd.* 69,000 230,569
CSR, Ltd. 127,000 308,489
David Jones, Ltd. 148,000 134,084
F.H. Faulding & Company, Ltd. 31,000 203,515
John Fairfax Holdings, Ltd. 76,000 229,513
Lend Lease Corporation 22,500 315,219
MIM Holdings, Ltd. * 180,000 185,527
National Australia Bank, Ltd. * 34,000 520,079
News Corporation * 56,000 543,740
North, Ltd. 148,000 348,812
Rio Tinto, Ltd. * 20,000 429,627
Solution 6 Holdings, Ltd. 50,000 544,895
TABCORP Holdings, Ltd. 27,125 183,667
Westpac Banking Corporation,
Ltd. * 56,000 386,279
WMC, Ltd. 80,000 441,168
-----------
5,855,732
HONG KONG - 12.61%
Amoy Properties, Ltd. 263,500 222,027
Asia Satellite Telecom
Holdings 62,000 195,806
Cable & Wireless, Ltd. 360,400 1,040,841
CDL Hotels International, Ltd. 110,000 43,867
Cheung Kong Holdings, Ltd. * 114,000 1,444,523
Cheung Kong Infrastructure
Holdings, Ltd. 93,000 179,456
China Telecom, Ltd. * 354,000 2,208,658
Citic Pacific, Ltd. 180,000 676,143
CLP Holdings, Ltd. 83,500 384,550
Dao Heng Bank Group, Ltd. 24,000 123,805
Esprit Holdings, Ltd. 62,000 66,997
Glorious Sun Enterprises 118,000 44,401
Guangdong Kelon Electrical
Holdings Company, Ltd. 180,000 136,618
Hang Lung Development Company
224,000 253,580
Hang Seng Bank, Ltd. 73,600 840,291
Henderson Investment, Ltd. 89,000 92,166
Henderson Land Development
91,000 585,322
Hong Kong & China Gas
Company, Ltd. 216,950 297,230
Hong Kong Electric Holdings, Ltd. * 66,500 207,879
Hong Kong Land Holdings, Ltd. 133,000 196,840
Hutchison Whampoa, Ltd. 105,000 1,526,340
Hysan Development Company,
Ltd 146,000 185,000
New World Infrastructure, Ltd. 133,045 170,296
South China Morning Post
Holdings, Ltd. 186,000 160,314
Sun Hung Kai Properties, Ltd. 103,000 1,073,262
Swire Pacific, Ltd. 120,000 708,561
Television Broadcast 34,000 231,813
Vatitronix International, Ltd. 88,000 201,505
Vitasoy International
Holdings, Ltd. 100,000 26,050
Wharf Holdings * 103,000 239,165
Wheelock & Company, Ltd. * 54,000 56,615
-----------
13,819,921
INDIA - 0.96%
Bajaj Auto, Ltd., GDR 12,910 119,418
Gujarat Ambuja Cements, Ltd.,
GDR 37,640 282,300
Hindalco Industries, Ltd., GDR 10,020 185,353
ITC, Ltd., GDR 8,500 164,900
Reliance Industries, Ltd., GDR 21,110 297,651
-----------
1,049,622
JAPAN - 37.62%
Amada Company, Ltd. * 85,000 465,058
Avex, Incorporated * 200 49,917
Credit Saison Company * 29,000 505,236
Daihatsu Motor Company * 65,000 321,278
Dainippon Ink & Chemical,
Incorporated * 100,000 296,565
Daiwa Securities Company, Ltd. * 130,000 2,034,550
Fujisawa Pharmaceutical
Company, Ltd. * 20,000 485,465
Fukuyama Transport Company,
Ltd. * 50,000 359,695
Hikari Tsushin, Incorporated * 500 1,003,230
Hino Motors * 70,000 232,945
Hosiden Corporation * 32,000 2,054,615
Itochu Techno-Science
Corporation * 100 62,347
JSR Corporation * 95,000 591,367
Kadokawa Shoten Publishing * 500 168,347
Kurita Water Industries * 20,000 317,901
Kyorin Pharmaceuticals
Company, Ltd. * 25,000 883,332
Marui Company, Ltd. * 60,000 896,153
Mitsubishi Corporation * 155,000 1,196,976
Mitsubishi Estate Company, Ltd. * 20,000 195,165
Mitsubishi Heavy Industries, Ltd. * 190,000 634,139
Mitsui Fudosan Company * 65,000 440,247
</TABLE>
The accompanying notes are an integral part of the financial statements.
70
<PAGE> 113
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
JAPAN- CONTINUED
Mitsui Marine and Fire
Insurance Company, Ltd. * 160,000 $ 949,007
Mori Seiki Company * 30,000 402,271
NEC Corporation * 24,000 571,988
Nikko Company * 1,000 2,897
Nippon Sanso Corporation * 115,000 337,672
Nippon Steel Corporation * 280,000 654,987
Nippon Telegraph & Telephone
Corporation * 100 1,712,832
NTT Data Corporation * 77 1,771,068
NTT Mobile Communication
Network, Incorporated * 70 2,692,571
Obayashi Corporation * 125,000 590,927
Orix Corporation * 6,000 1,351,865
Rengo Company, Ltd. * 175,000 899,237
Ricoh Company, Ltd. * 90,000 1,696,584
Sakura Bank * 35,000 202,799
Sanwa Bank 90,000 1,094,940
Shibaura Mechatronics
Corporation * 13,000 153,832
Shohkoh Fund & Company, Ltd. * 1,300 514,681
Sony Corporation * 6,500 1,927,670
Sumitomo Bakelite Company, Ltd. * 95,000 850,788
Suruga Bank * 18,000 251,052
Tabuchi Electric * 32,000 95,527
Taiyo Yuden Company * 25,000 1,482,823
Takeda Chemical Industries, Ltd. * 17,542 867,056
The Industrial Bank of Japan, Ltd. 95,000 915,875
The Mitsui Trust & Banking Company,
Ltd. * 100,000 226,094
Tokyo Electron, Ltd. * 16,000 2,192,424
Tokyo Seimitsu Company, Ltd. * 10,000 1,614,955
Toray Industries,
Incorporated * 125,000 484,487
Trend Micro, Incorporated 6,000 1,515,122
-----------
41,218,559
KOREA - 4.46%
Korea Electric Power
Corporation, ADR 43,600 730,300
Korea Telecom Corporation, ADR 15,180 1,134,705
LG Information &
Communication, Ltd. 3,645 603,488
Pohang Iron & Steel, Ltd., ADR 25,560 894,600
Samsung Electronics, Ltd., GDR 5,900 715,375
SK Telecom Company, Ltd., ADR 20,930 803,173
-----------
4,881,641
MALAYSIA - 0.93%
Austral Enterprises Berhad 67,700 69,838
Berjaya Sports Toto Berhad * 26,000 56,105
Boustead Holdings Berhad 76,600 65,715
Cahya Mata Sarawak Berhad 50,000 40,789
KFC Holdings Berhad 40,000 52,632
Malayan Bank Berhad 97,220 345,387
Petronas Gas Berhad 32,000 74,947
Puncak Niaga Holdings Berhad 78,400 78,813
Sime Darby Berhad * 123,000 156,016
United Plantation Berhad * 70,900 78,363
-----------
1,018,605
NEW ZEALAND - 0.80%
Carter Holt Harvey 285,000 372,281
Telecom Corporation of New
Zealand, Ltd. * 108,000 507,870
-----------
880,151
PHILIPPINES - 0.50%
Alsons Consolidated
Resources, Incorporated 1,371,000 13,608
Manila Electric Company 31,600 90,174
Philippine Long Distance
Telephone Company, ADR 6,580 170,257
San Miguel Corporation, Class B 196,700 278,211
-----------
552,250
SINGAPORE - 7.56%
City Developments 76,600 448,424
DBS Group Holdings, Ltd. 70,000 1,147,403
Elec & Eltek International
Company, Ltd. 97,000 314,280
Fraser & Neave, Ltd. * 63,600 234,848
Jurong Shipyard, Ltd. 79,000 396,067
Keppel Corporation 154,125 403,473
Overseas-Chinese Banking
Corporation, Ltd. 81,250 746,398
Sembcorp Industries, Ltd. 354,000 482,486
Singapore Airlines, Ltd. 96,800 1,098,481
Singapore Press Holdings, Ltd. * 38,600 836,662
Singapore Technologies
Engineering, Ltd. 266,000 412,056
Singapore Telecommunications,
Ltd. 556,000 1,148,388
United Overseas Bank * 68,968 608,724
-----------
8,277,690
TAIWAN - 0.25%
Synnex Technology International
Corporation, GDR 10,780 278,124
-----------
THAILAND - 1.60%
Bangkok Expressway * 225,000 107,527
BEC World Public Company, Ltd. 33,300 235,173
</TABLE>
The accompanying notes are an integral part of the financial statements.
71
<PAGE> 114
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
THAILAND -CONTINUED
Electricity Generating Public
Company, Ltd. 147,000 $ 182,457
National Petrochemical Company 153,400 170,037
PTT Exploration & Production
Public Company, Ltd. 42,100 259,318
Shin Corporations Public
Company, Ltd. 51,900 490,546
Thai Farmers Bank 182,000 304,420
-----------
1,749,478
UNITED KINGDOM - 1.90%
HSBC Holdings-HKD * 140,400 1,968,688
Tanjong PLC 49,000 108,316
-----------
2,077,004
UNITED STATES - 0.48%
Taiwan Fund, Incorporated * 26,000 529,750
-----------
TOTAL COMMON STOCKS
(Cost: $61,420,259) $82,188,527
-----------
PREFERRED STOCK - 0.18%
JAPAN - 0.18%
AB International Cayman Trust
Units 16,000,000 195,752
-----------
TOTAL PREFERRED STOCK
(Cost: $108,663) $ 195,752
-----------
WARRANTS - 0.19% *
JAPAN - 0.19%
NGK Spark Plug Company, Ltd.
(Expiration date 02/15/2001;
strike price JPY 1271) 475 106,875
Takashimaya Cayman (Expiration date
01/18/2000; strike price
JPY 1,569) 7 88
THK Company, Ltd. (Expiration date
06/20/2000; strike price
JPY 1902) 100 97,343
-----------
204,306
TOTAL WARRANTS
(Cost: $321,441) $204,306
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
CONVERTIBLE BONDS - 1.44%
CHINA - 0.00%
Qingling Motors Company
3.50% due 01/22/2002 $ 20,000 $ 5,406
-----------
JAPAN - 1.44%
Daiwa Securities Group,
Incorporated, 00.50% due
09/29/2006 15,000,000 220,955
Hosiden Corporation *
1.90% due 09/29/2000 12,000,000 325,340
MTI Capital (Cayman), Ltd. *
00.50% due 10/01/2007 22,000,000 149,114
STB Cayman Capital *
00.50% due 10/01/2007 10,000,000 134,090
THK Company, Ltd. *
00.30% due 09/30/2003 50,000,000 743,859
-----------
1,573,358
TOTAL CONVERTIBLE BONDS
(Cost: $963,733) $ 1,578,764
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C>
SHORT TERM INVESTMENTS - 15.72%
$17,225,619 Navigator Securities Lending
Trust, $17,225,619
5.86% --------------
REPURCHASE AGREEMENTS - 7.46%
$8,173,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.95% to be
repurchased at $8,175,009 on
01/03/2000, collateralized by
$7,810,000 U.S. Treasury Notes,
7.875% due 11/15/2004 (valued at
$8,337,175, including interest). $8,173,000
--------------
TOTAL INVESTMENTS (PACIFIC RIM EMERGING
MARKETS TRUST) (Cost: $88,212,715)
$109,565,968
===================
</TABLE>
The Trust had the following five top industry concentrations at December 31,
1999 (as a percentage of total value of investments):
Telecommunications Services 15.18%
Electronics 10.08%
Banking 9.29%
Real Estate 8.34%
Financial Services 5.90%
The accompanying notes are an integral part of the financial statements.
72
<PAGE> 115
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
SCIENCE & TECHNOLOGY TRUST
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS - 86.16%
BUSINESS SERVICES - 11.27%
America Online, Incorporated * 425,000 $ 32,060,938
First Data Corporation 462,000 22,782,375
Internet Capital Group,
Incorporated 100,000 17,000,000
SOFTBANK CORP 23,000 22,016,248
Yahoo, Incorporated * 111,000 48,028,312
------------
141,887,873
COMPUTERS & BUSINESS EQUIPMENT - 13.15%
3Com Corporation * 550,000 25,850,000
Avant Corporation * 139,000 2,085,000
Cisco Systems, Incorporated * 416,000 44,564,000
Dell Computer Corporation * 601,000 30,651,000
EMC Corporation * 106,000 11,580,500
E*Trade Group, Incorporated * 465,000 12,148,125
MIPS Technologies,
Incorporated * 34,500 1,794,000
PSINet, Incorporated * 162,000 10,003,500
Sun Microsystems,
Incorporated * 346,500 26,832,094
------------
165,508,219
ELECTRICAL EQUIPMENT - 7.39%
ASM Lithography Holding NV * 92,500 10,521,875
KLA-Tencor Corporation * 92,500 10,302,187
Sanmina Corporation * 111,000 11,086,125
SCI Systems, Incorporated * 370,000 30,409,375
Solectron Corporation * 323,000 30,725,375
------------
93,044,937
ELECTRONICS - 20.20%
Altera Corporation * 462,000 22,897,875
Analog Devices, Incorporated * 485,000 45,105,000
Applied Materials,
Incorporated * 157,000 19,889,937
Applied Micro Circuits
Corporation * 38,000 4,835,500
Conexant Systems,
Incorporated * 153,000 10,155,375
Electronics For Imaging,
Incorporated * 185,000 10,753,125
Flextronics International * 185,000 8,510,000
Intel Corporation 249,000 20,495,812
Lucent Technologies,
Incorporated 139,000 10,398,938
Maxim Integrated Products,
Incorporated * 536,000 25,292,500
Synopsys, Incorporated * 370,000 24,697,500
Texas Instruments,
Incorporated 208,000 $ 20,150,000
Xilinx, Incorporated * 684,000 31,100,625
------------
254,282,187
INDUSTRIAL MACHINERY - 1.36%
Cognex Corporation * 210,000 8,190,000
Mannesmann AG 37,000 8,926,629
--------------
17,116,629
SOFTWARE - 21.02%
BMC Software, Incorporated * 300,000 23,981,250
--------------
Computer Associates
International, 185,000 12,938,438
Incorporated
Electronic Arts * 185,000 15,540,000
Intuit, Incorporated * 555,000 33,265,312
Microsoft Corporation * 370,000 43,197,500
Novell, Incorporated * 924,000 36,902,250
Oracle Systems Corporation * 439,500 49,251,469
--------------
Parametric Technology
Corporation * 1,345,000 36,399,062
Veritas Software Corporation * 92,000 13,167,500
--------------
264,642,781
TELECOMMUNICATIONS SERVICES - 8.39%
KPNQwest NV * 79,000 5,036,250
Nokia Corporaton, ADR 185,000 35,150,000
Nortel Networks Corporation 231,000 23,331,000
PanAmSat Corporation * 92,000 5,462,500
Vodafone Group PLC, ADR 739,000 36,580,500
--------------
105,560,250
TELEPHONE - 3.38%
MCI WorldCom, Incorporated 693,000 36,772,313
Nextlink Communications,
Incorporated * 70,000 5,814,375
--------------
42,586,688
TOTAL COMMON STOCKS
(Cost: $723,117,743) $1,084,629,565
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C>
SHORT TERM INVESTMENTS - 12.80%
$3,481,000 Federal Home Loan Bank,
5.56% due 01/26/2000 $3,467,559
Federal Home Loan Mortgage
Corporation,
7,645,000 5.53% due 01/18/2000 7,625,036
3,000,000 5.60% due 01/11/2000 2,995,333
10,935,000 5.605% due 01/27/2000 10,890,735
</TABLE>
The accompanying notes are an integral part of the financial statements.
73
<PAGE> 116
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -------
<S> <C>
SHORT TERM INVESTMENTS - continued
$10,000,000 Federal National Mortgage
Association, 5.52% due
01/21/2000 $9,969,333
International Bank For
Reconstruction &
Development,
1,660,000 5.53% due 01/26/2000 1,653,625
6,825,000 5.55% due 01/19/2000 6,806,061
117,771,425 Navigator Securities Lending
Trust, 117,771,425
5.86%
--------------
$161,179,107
REPURCHASE AGREEMENTS - 1.04%
$13,121,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 2.50%, to be
repurchased at $13,123,734 on
01/03/2000, collateralized by
$12,365,000 U.S. Treasury Bonds,
7.25% due 08/15/2022 (valued at
$13,385,113, including interest) $13,121,000
--------------
TOTAL INVESTMENTS (SCIENCE & TECHNOLOGY
TRUST) (Cost: $897,417,850) $1,258,929,672
===================
</TABLE>
INTERNATIONAL SMALL CAP TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 100.00%
ARGENTINA - 0.72%
El Sitio, Incorporated * 48,450 $ 1,780,537
-----------
AUSTRALIA - 4.14%
Catuity, Incorporated * 6,435 73,085
Challenger International 8,444 22,839
Chaosmusic, Ltd. * 73,911 51,919
Davnet 581,325 877,772
ERG, Ltd. 111,625 626,560
Fibertel, Ltd. 218,350 196,385
Health Communications Network
* 94,025 95,678
MultiEmedia.com, Ltd. 3,157,541 1,471,777
One.Tel, Ltd. 590,375 910,816
Sausage Software 311,550 1,063,570
Secure Networks Solutions, Ltd. 537,135 2,433,141
Solution 6 Holdings 105,675 1,151,636
Westel Group, Ltd. 2,483,713 1,337,057
-----------
10,312,235
BERMUDA - 0.61%
Hanny Holdings, Ltd. 1,596,000 $ 1,509,050
-----------
BRAZIL - 2.48%
Celular CRT Participacoes SA * 6,375,000 1,111,611
Inepar SA Industria e
Construcoes 371,225,000 1,551,480
Tele Celular Sul Participacoes 48,000 1,524,000
Tele Centro Oeste Celular
Participacoes SA 172,000 1,118,000
Tele Nordeste Celular
Participacoes 17,200 868,600
-----------
6,173,691
CAYMAN ISLAND - 1.23%
TCL International Holdings, Ltd. * 4,422,000 3,071,821
-----------
DENMARK - 0.80%
Vesta Wind Systems 11,175 1,981,249
-----------
EGYPT - 1.94%
Commercial International Bank
Egypt SA, GDR 62,950 922,312
Orascom Construction * 102,206 2,106,416
Orascom Hotel Holdings SA * 180,475 684,811
Oriental Weavers C 31,850 577,271
Tourah Portland Cement
Company 24,850 546,943
-----------
4,837,753
FINLAND - 4.29%
Comptel Oyj * 31,950 2,247,788
Data Fellows Oyj 19,650 574,038
Elcoteq Network Company 20,750 317,718
Jot Automation Group 104,575 974,428
PMJ Automec Oyj 33,325 391,761
Stonesoft Ojy 106,000 1,409,484
Talentum Oyj 48,275 1,171,978
Teleste Corporation 156,575 2,555,157
TJ Group Oyj 29,000 1,022,460
-----------
10,664,812
FRANCE - 6.41%
Alten * 8,000 1,379,666
Avenir Telecom 3,555 673,968
Coheris Atix * 4,375 806,069
Consodata SA * 25,525 1,157,067
Cross Systems * 3,045 674,824
Fi System 3,749 1,140,519
Infosources 19,004 1,407,060
Ingenico SA 31,325 1,353,404
IPSOS * 19,422 1,606,266
Neopost SA 28,225 1,187,054
</TABLE>
The accompanying notes are an integral part of the financial statements.
74
<PAGE> 117
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
FRANCE - CONTINUED
Remy Cointreau SA 37,100 $ 834,158
SOITEC 6,150 835,732
Valtech 12,230 1,009,615
Wavecom SA * 21,275 1,875,244
-----------
15,940,646
GERMANY - 11.88%
ADVA AG Optical Networking * 5,575 1,055,803
Articon Information Sysem AG 18,008 907,017
Austria Technology NV * 19,932 1,024,003
Brokat Infosystem 13,275 2,768,121
Easy Software AG * 9,869 477,194
Fluxx.com AG * 17,950 560,540
GFK AG * 44,495 1,792,881
Internet Mediahous * 9,325 358,833
Intershop Communications AG 8,250 2,326,978
Jumptec Industries * 3,869 339,077
Kabel New Media * 4,305 107,549
Kamps AG 11,925 822,866
Kamps AG - New 17,640 1,176,351
Pandatel AG * 6,100 402,486
Pixelpark AG * 15,025 1,710,303
Ricardo 27,500 3,061,084
Secunet Security A * 32,075 1,453,983
Sinnerschrader AG * 27,000 1,327,284
Telegate AG 42,225 2,450,035
TOMMORROW Internet AG * 28,925 1,486,017
Utimaco Safeware 13,250 2,249,034
Zapf Creation * 51,443 1,710,096
-----------
29,567,535
GREECE - 0.21%
ETBA SA 56,300 515,410
-----------
HONG KONG - 2.65%
ASM Pacific Technology, Ltd. 212,000 376,356
CCT Telecom Holdings, Ltd. 1,844,000 1,375,854
E New Media 4,152,000 2,016,312
Global Tech Holdings, Ltd. 1,216,000 1,415,681
Quality Healthcare 660,000 254,711
Sino-i.com, Ltd. 12,743,000 1,163,894
-----------
6,602,808
INDONESIA - 0.59%
PT Multipolar Corporation 8,357,000 1,465,091
-----------
IRELAND - 0.74%
Grafton Group 18,700 423,842
ITG Group PLC 98,636 1,092,970
Jurys Doyle Hotel 45,150 332,018
-----------
1,848,830
ISRAEL - 2.15%
Audio Codes, Ltd. 18,575 $ 1,708,900
BATM Advanced Communications,
Ltd 19,375 1,602,378
Geo Interact Media 72,025 2,035,985
-----------
3,638,363
ITALY - 2.56%
Class Editore 119,700 2,086,030
Ericsson SPA 43,475 2,480,960
Olidata SPA * 79,600 495,543
Poligrafica San Faustino * 2,975 398,733
Tiscali SPA * 2,250 913,414
-----------
6,374,680
JAPAN - 10.20%
Alpha Systems, Incorporated 6,000 1,262,602
Chiyoda Integre Company 33,000 436,038
Copal Electronic 71,000 1,327,298
Enplas Corporation 36,000 1,338,945
GLOBAL-DINING, Incorporated
16,000 1,158,853
H.I.S. Company 30 2,140
INES Corporation 80,000 2,591,759
Innotech Corporation 40,200 1,809,925
Justsystem 7,000 424,782
Kappa Create Company 43,000 904,864
Kinseki 56,000 594,695
Koha Company 9,000 625,428
Medical Support 3,000 145,052
Mobilephone
Telecommunications
International, Ltd. 45 4,492,513
Moritex Corp 4,000 195,752
Nippon Thompson Company 236,000 1,949,535
PCA Corporation 17,620 1,112,352
Plaza Create Co 12,500 1,284,624
Renown, Incorporated 49,000 119,898
Shobunsha Publications,
Incorporated 15,000 939,610
Tanseisha Company 81,500 558,383
Uchida Yoko Company 246,000 1,504,845
Yokowo Company 24,000 599,002
-----------
25,378,895
KOREA - 0.66%
Cybertek Holdings * 100 1,541
Medidas Company, Ltd. 30,080 772,199
The Will Bes & Company * 87,740 877,014
-----------
1,650,754
MEXICO - 3.16%
ConNova Group AB * 488,175 808,902
Corporacion GEO, SA * 281,350 1,060,074
</TABLE>
The accompanying notes are an integral part of the financial statements.
75
<PAGE> 118
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
MEXICO - CONTINUED
Corporation Interamericana
Entret SA, Series B * 284,825 $ 1,137,797
DataCapital, SA 1,182,175 499,071
Grupo Elektra 1,360,450 1,341,066
Grupo Radio Centro SA * 74,325 622,472
Grupo Sanborns SA * 1,077,025 2,387,074
----------
7,856,456
NETHERLANDS - 2.17%
ASM International NV * 110,900 2,569,447
Detron Group NV * 40,325 869,297
Unit 4 NV * 76,353 1,957,466
----------
5,396,210
NEW ZEALAND - 0.62%
Advantage Group, Ltd. 755,075 1,538,654
----------
NORWAY - 2.69%
Norman ASA 160,000 1,738,370
Opticom ASA 12,450 2,643,147
Visma ASA 308,675 2,312,894
----------
6,694,411
SINGAPORE - 0.86%
Jit Holdings 78,000 271,630
Keppel Telecommunication &
Transportation, Ltd. 657,000 1,069,031
Media Ring.com, Ltd. * 660,000 713,299
PCI, Ltd. 110,000 89,823
----------
2,143,783
SOUTH AFRICA - 0.53%
Anglovaal Industries, Ltd. 245,300 237,528
Ixchange Tech 253,800 1,072,104
----------
1,309,632
SWEDEN - 10.16%
Arkivator AB 30,200 770,173
Aspiro Information * 27,950 1,172,658
Connecta AB * 27,700 944,059
ConNova Group AB * 28,450 304,260
Connova Group AB * 103,775 1,750,113
Enea Data AB 13,725 1,056,514
Framtidsfabriken AB * 10,825 1,959,161
HIQ International 19,850 1,271,389
IFS AB 27,175 590,830
Infocast AB 83,075 536,976
Information Highway Center 16,475 2,730,021
Mandator AB 192,200 2,868,657
Modul 1 Data AB 31,850 344,365
Semcon AB 100,225 1,177,870
Sifo Group 25,275 320,802
Sigma AB 63,975 1,368,369
Switchcore 69,250 2,832,178
Technology Nexus 59,500 1,118,815
Telelogic AB * 18,175 965,460
Teligent, Incorporated 70,150 1,195,411
-----------
25,278,081
SWITZERLAND - 3.36%
4M Technologies Holding SA * 6,325 1,902,704
Edipresse SA 1,330 735,037
Fantastic Corporation * 18,125 3,432,544
Kudelski SA 225 1,342,398
Miracle Holdings AG * 1,980 572,003
SEZ Holding AG 650 363,719
-----------
8,348,405
TURKEY - 1.99%
Dogan Yayin Holdings * 138,352,000 2,040,590
Netas Northern Electric
Telekomunikasyon AS 6,318,000 838,673
Vestel Electronic 8,644,613 2,071,902
-----------
4,951,165
UNITED KINGDOM - 18.10%
African Lakes Corporation 326,725 527,759
Ait Group 10,950 268,851
Autonomy Corporation PLC * 39,750 1,927,875
Baltimore Technologies PLC 8,325 685,816
Bloomsbury Publishing PLC 72,700 945,330
Capital Radio 65,075 1,576,735
Celltech Group PLC 108,425 926,485
Chrysalis Group 3,000 72,688
Dialog Semiconduct * 44,150 3,268,875
Eidos PLC, ADR 8,625 715,875
FI System 80,000 997,609
Fibernet Group PLC 9,000 257,317
Glotel PLC * 37,800 445,726
Goldshield Group 13,250 139,974
Guardian IT PLC 129,100 2,010,280
Harrier Group * 154,950 1,026,192
HIT Entertainment PLC 14,875 511,788
Imagination Technologies Group 232,300 1,527,203
Incepta Group 268,525 494,473
Independent Energy Holdings PLC, ADR 47,750 1,590,672
Infobank International Holding 46,250 1,359,679
IQE * 27,125 1,057,875
Jazztel PLC, ADR * 15,625 1,017,578
Kewell Systems * 44,350 1,117,561
Matalan 59,400 1,632,090
NDS Group PLC, ADR 37,600 1,146,800
Netbenifit 15,600 217,969
</TABLE>
The accompanying notes are an integral part of the financial statements.
76
<PAGE> 119
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM - CONTINUED
Newmedia Spark * 396,200 $ 1,135,968
NXT PLC 63,625 1,407,996
Pace Micro Technology PLC 249,400 2,094,850
RM PLC 91,175 1,273,929
QXL, Ltd. * 105,200 2,446,986
Recognition Systems 317,925 1,771,728
Redstone Telecom * 139,100 1,094,232
Sherwood International 90,700 1,853,323
Sportsworld Media 36,925 291,067
Superscape VR PLC 81,275 443,738
The Exchange Holdings PLC * 277,725 1,561,160
Trafficmaster PLC 98,752 1,443,603
Whatman PLC 37,475 756,667
------------
45,042,322
UNITED STATES - 2.10%
Firstcom Corporation 26,875 987,656
SCM Microsystems, Incorporated 26,500 1,694,344
Sensar Corporation 27,100 1,612,450
Tricom SA 41,625 936,563
------------
5,231,013
TOTAL COMMON STOCKS
(Cost: $182,051,829) $248,813,192
------------
TOTAL INVESTMENTS (INTERNATIONAL SMALL
CAP TRUST) (Cost: $182,051,829) $248,813,192
============
</TABLE>
The Trust had the following five top industry concentrations at December 31,
1999 (as a percentage of total value of investments):
Telecommunications Services 16.72%
Business Services 16.40%
Software 8.71%
Computers & Business Equipment 8.32%
Electronics 8.26%
AGGRESSIVE GROWTH TRUST
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS - 78.37%
AIR TRAVEL - 0.60%
Eagle USA Airfreight, Incorporated * 9,100 $ 392,437
Ryanair Holdings PLC, ADR * 11,000 606,375
----------
998,812
APPAREL & TEXTILES - 1.08%
G & K Services, Class A 7,000 226,625
Pacific Sunwear of California * 23,150 737,906
Quiksilver, Incorporated 34,500 534,750
Vans, Incorporated * 25,100 307,475
----------
1,806,756
AUTO PARTS - 1.18%
Brooks Automation, Incorporated * 5,500 179,094
Copart, Incorporated * 12,500 543,750
Gentex Corporation * 29,500 818,625
Meritor Automotive, Incorporated 15,000 290,625
Tower Automotive, Incorporated * 9,400 145,112
----------
1,977,206
AUTOMOBILES - 0.69%
O'Reilly Automotive,
Incorporated * 54,000 1,161,000
----------
BANKING - 0.72%
Bank United Corporation, Class A 11,000 299,750
Southwest Bancorporation of
Texas, Incorporated * 28,500 564,656
Trustmark Corporation 16,000 345,750
----------
1,210,156
BROADCASTING - 3.24%
Cabletron Systems, Incorporated * 41,800 1,086,800
Hispanic Broadcasting Corporation * 8,300 765,416
Powerwave Technologies, Incorporated * 27,000 1,576,125
Proxim, Incorporated * 9,500 1,045,000
Radio One, Incorporated, Class A * 10,400 956,800
----------
5,430,141
BUILDING MATERIALS & CONSTRUCTION - 0.61%
Dycom Industries, Incorporated * 11,000 484,687
Elcor Chemical Corporation 18,000 542,250
----------
1,026,937
</TABLE>
The accompanying notes are an integral part of the financial statements.
77
<PAGE> 120
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
BUSINESS SERVICES - 9.91%
Allscripts, Incorporated * 4,100 $ 180,400
Black Box Corporation * 11,500 770,500
CareInsite, Incorporated * 4,200 338,100
Check Point Software
Technologies, Ltd. * 12,000 2,385,000
Checkfree Holdings
Corporation * 9,500 992,750
Chemdex Corporation * 3,700 410,700
Concord EFS, Incorporated * 80,250 2,066,437
Express Scripts,
Incorporated, Class A * 28,500 1,824,000
FactSet Research Systems,
Incorporated 3,200 254,800
Finistar Corporation * 14,500 1,303,187
Hooper Holmes, Incorporated 23,500 605,125
Insight Enterprises,
Incorporated * 28,800 1,170,000
Iron Mountain, Incorporated * 19,200 754,800
Mission Critical Software,
Incorporated * 8,000 560,000
pcOrder.com, Incorporated * 7,400 377,400
Provant, Incorporated * 8,400 212,100
Robert Half International,
Incorporated * 17,700 505,556
Scansource, Incorporated * 7,500 304,219
SEI Investment Company 5,000 595,078
Sykes Enterprises,
Incorporated * 18,400 807,300
Valassis Communications,
Incorporated * 5,150 217,588
-----------
16,635,040
CHEMICALS - 1.66%
Biovail Corporation
International * 7,000 656,250
Cambrex Corporation 12,500 430,469
OM Group, Incorporated 19,300 664,644
Spartech Corporation 17,700 570,825
Techne Corporation * 8,500 468,031
-----------
2,790,219
COMPUTERS & BUSINESS EQUIPMENT - 8.94%
Actel Corporation * 31,500 756,000
Affiliated Computer Services,
Incorporated, Class A * 19,000 874,000
Aspen Technology,
Incorporated * 23,600 623,925
Citrix Systems, Incorporated * 9,500 1,168,500
Cybex Computer Products
Corporation * 7,100 287,550
Freemarkets, Incorporated * 1,900 648,494
Henry, Jack & Associates,
Incorporated 5,700 $ 306,019
Macromedia, Incorporated * 9,500 694,687
Miami Computer Supply
Corporation * 11,000 408,375
National Computer Systems,
Incorporated 21,500 808,937
National Instruments
Corporation * 37,500 1,434,375
QRS Corporation * 7,500 782,344
Rational Software Corporation * 11,600 569,850
Sandisk Corporation * 20,500 1,973,125
Verity, Incorporated * 28,300 1,204,519
Visual Networks, Incorporated * 15,500 1,228,375
Xircom, Incorporated * 16,500 1,237,500
----------
15,006,575
CONSTRUCTION MATERIALS - 0.18%
Simpson Manufacturing,
Incorporated * 7,000 306,250
----------
CRUDE PETROLEUM & NATURAL GAS - 0.40%
Cabot Oil & Gas Corporation,
Class A 7,000 112,438
Evergreen Resources * 13,000 256,750
National Oilwell, Incorporated * 19,000 298,062
----------
667,250
DOMESTIC OIL - 1.26%
Maverick Tube Corporation * 37,500 925,781
Newfield Exploration Company * 20,000 535,000
Patterson Energy,
Incorporated * 38,500 500,500
Stone Energy Corporation * 4,400 156,750
----------
2,118,031
DRUGS & HEALTH CARE - 2.13%
ALPHARMA, Incorporated, Class A 19,000 584,250
Health Management
Association, Class A * 46,900 627,288
Medicis Pharmaceutical
Corporation, Class A * 10,100 429,881
PE Corp-Celera Genomics
Group * 7,900 1,177,100
Province Healthcare
Company * 17,500 332,500
ResMed, Incorporated * 10,000 417,500
----------
3,568,519
</TABLE>
The accompanying notes are an integral part of the financial statements.
78
<PAGE> 121
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
ELECTRICAL EQUIPMENT - 5.27%
Advanced Energy Industries,
Incorporated * 18,200 $ 896,350
C-COR.Net Corporation * 20,400 1,563,150
Emulex Corporation * 24,500 2,756,250
Molex, Incorporated, Class A 18,900 855,225
Power One, Incorporated * 21,000 962,062
Sanmina Corporation * 7,500 749,063
Sawtek, Incorporated * 16,000 1,065,000
-----------
8,847,100
ELECTRONICS - 17.83%
Alpha Industries,
Incorporated * 36,500 2,091,906
Anadigics, Incorporated * 15,000 707,813
Applied Micro Circuits
Corporation * 20,500 2,608,625
Asyst Technologies,
Incorporated * 22,000 1,442,375
ATMI, Incorporated * 19,500 644,719
Burr-Brown Corporation * 18,000 650,250
Concord Communications,
Incorporated * 6,000 266,250
Credence Systems Corporation * 19,000 1,643,500
Cree Research, Incorporated * 24,500 2,091,687
Cymer, Incorporated * 7,300 335,800
Dallas Semiconductor
Corporation 13,200 850,575
Electronics For Imaging,
Incorporated * 15,500 900,938
Etec Systems, Incorporated 11,000 493,625
Foundry Networks,
Incorporated * 1,600 482,700
Globespan Semiconductor,
Incorporated * 7,400 481,925
Kopin Corporation * 31,000 1,302,000
Micrel, Incorporated * 11,000 626,313
Microchip Technology,
Incorporated * 30,500 2,087,344
PMC-Sierra, Incorporated * 7,500 1,202,344
Qlogic Corporation * 12,500 1,998,437
SDL, Incorporated * 12,000 2,616,000
Semtech Corporation * 22,500 1,172,812
Sycamore Networks,
Incorporated * 1,800 554,400
TekTronix, Incorporated 13,000 505,375
Transwitch Corporation * 7,700 558,731
Vishay Intertechnology,
Incorporated * 38,500 1,217,562
Vitesse Semiconductor
Corporation * 7,400 388,038
-----------
29,922,044
FINANCIAL SERVICES - 1.23%
Affiliated Managers Group,
Incorporated * 2,200 $ 88,963
Americredit Corporation * 6,400 118,400
Eaton Vance Corporation 11,300 429,400
First Republic Bank * 12,500 293,750
NOVA Corporation * 27,500 867,969
Queens County Bancorp 9,700 263,112
----------
2,061,594
FOOD & BEVERAGES - 0.41%
Canandaigua Wine,
Incorporated, Class A * 4,800 244,800
Hain Food Group, Incorporated * 20,000 447,500
----------
692,300
GAS & PIPELINE UTILITIES - 0.78%
Core Laboratories NV * 37,900 760,369
Global Industries,
Incorporated * 12,300 106,088
Kinder Morgan, Incorporated 22,000 444,125
----------
1,310,582
HOTELS & RESTAURANTS - 1.37%
CEC Entertainment,
Incorporated * 28,850 818,619
Jack In the Box, Incorporated * 26,700 552,356
Sonic Corporation * 19,400 552,900
Station Casinos, Incorporated * 17,000 381,438
----------
2,305,313
INDUSTRIAL MACHINERY - 0.31%
Mettler-Toledo International,
Incorporated * 8,200 313,137
Pentair, Incorporated 5,000 192,500
Varco International,
Incorporated * 900 9,169
----------
514,806
LEISURE TIME - 0.03%
Championship Auto Racing Team * 2,200 50,600
----------
NEWSPAPERS - 0.45%
Gemstar Group, Ltd. * 10,600 755,250
----------
PETROLEUM SERVICES - 0.39%
Cal Dive International,
Incorporated * 6,100 202,062
Marine Drilling Companies,
Incorporated * 20,500 $ 459,969
----------
662,031
</TABLE>
The accompanying notes are an integral part of the financial statements.
79
<PAGE> 122
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
PUBLISHING - 0.17%
IDG Books Worldwide,
Incorporated * 11,700 135,281
Meredith Corporation 3,500 145,907
----------
281,188
RETAIL TRADE - 6.78%
99 Cents Only Stores * 13,400 512,550
American Eagle Outfitters,
Incorporated * 30,500 1,372,500
Ann Taylor Stores Corporation * 16,500 568,219
CDW Computer Centers,
Incorporated * 14,200 1,116,475
Childrens Place Retail
Stores, Incorporated * 19,000 312,313
Cost Plus, Incorporated * 7,150 254,719
Fossil, Incorporated * 17,500 404,687
Linens 'N Things, Incorporated * 17,500 518,437
Madden Steven, Ltd. * 18,900 360,281
Mens Wearhouse, Incorporated * 66,216 1,945,095
Michael's Stores,
Incorporated * 31,000 883,500
Regis Corporation 16,000 302,000
Sunglass Hut International,
Incorporated * 21,200 238,500
Talbots, Incorporated 13,500 602,437
Too, Incorporated * 39,500 681,375
Wild Oats Markets,
Incorporated * 28,500 632,344
Zale Corporation * 14,000 677,250
----------
11,382,682
SOFTWARE - 5.44%
Business Objects SA, ADR * 9,500 1,269,437
Entrust Technologies,
Incorporated 7,100 425,556
Gadzoox Networks,
Incorporated * 14,500 631,656
ISS Group, Incorporated * 7,500 533,438
Mercury Interactive
Corporation * 11,000 1,187,312
Micromuse, Incorporated * 5,500 935,000
Peregrine Systems,
Incorporated * 5,700 479,869
Pinnacle Systems,
Incorporated * 16,500 671,344
SOFTWARE - CONTINUED
Symantec Corporation * 9,500 $ 556,938
TSI International Software, Ltd. * 14,500 821,062
VeriSign, Incorporated * 8,500 1,622,969
------------
9,134,581
TELECOMMUNICATIONS SERVICES - 3.22%
AirGate PCS, Incorporated * 9,000 474,750
Ancor Communications,
Incorporated * 6,800 461,550
ANTEC Corporation * 6,800 248,200
Commscope, Incorporated * 21,500 866,719
Comverse Technology,
Incorporated * 7,000 1,013,250
Mastec, Incorporated * 18,100 805,450
Polycom, Incorporated * 24,000 1,528,500
------------
5,398,419
TELEPHONE - 1.80%
Harmonic, Incorporated * 26,800 2,544,325
Western Wireless Corporation,
Class A * 7,000 467,250
------------
3,011,575
TRANSPORTATION - 0.28%
Expeditores International of
Washington, Incorporated 10,600 464,413
------------
TOTAL COMMON STOCKS
(Cost: $91,088,472) $131,497,370
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C>
SHORT TERM INVESTMENTS - 21.63%
$3,091,000 Federal Home Loan Bank,
1.50% due 01/03/2000 $3,090,742
33,210,858 Navigator Securities Lending
Trust, 33,210,858
5.86%
------------
$36,301,600
TOTAL INVESTMENTS (AGGRESSIVE GROWTH
TRUST) (Cost: $127,390,072) $167,798,970
============
</TABLE>
EMERGING SMALL COMPANY TRUST
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS - 72.66%
AIR TRAVEL - 0.34%
Alaska Air Group * 55,600 $1,952,950
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
80
<PAGE> 123
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
APPAREL & TEXTILES - 0.73%
Tommy Hilfiger Corporation * 83,800 $ 1,953,587
Wolverine World Wide,
Incorporated 202,100 2,210,469
-----------
4,164,056
AUTO PARTS - 0.74%
Gentex Corporation * 142,600 3,957,150
Tower Automotive,
Incorporated 15,300 236,194
-----------
4,193,344
BANKING - 2.05%
Bank United Corporation,
Class A 101,200 2,757,700
Commerce Bancorp, Incorporated 31,000 1,253,562
Golden State Bancorp,
Incorporated * 160,000 2,760,000
Silicon Valley Bancshares * 80,600 3,989,700
Westamerica Bancorporation 33,600 938,700
-----------
11,699,662
BROADCASTING - 0.61%
Acme Communications,
Incorporated * 200 6,650
Cumulus Media, Incorporated,
Class A * 26,300 1,334,725
Emmis Communications
Corporation, Class A * 4,100 511,027
Radio One, Incorporated,
Class A * 7,900 726,800
Spanish Broadcasting Systems,
Incorporated, Class A * 16,000 644,000
Tivo, Incorporated * 4,000 135,000
Wink Communications,
Incorporated 2,000 120,125
-----------
3,478,327
BUILDING MATERIALS & CONSTRUCTION - 0.39%
Dycom Industries,
Incorporated * 51,100 2,251,594
-----------
BUSINESS SERVICES - 10.18%
AGENCY.COM, Incorporated * 1,000 51,000
Allaire Corporation * 6,000 877,875
Alteon Websystems,
Incorporated * 1,300 114,075
Answerthink Consulting Group * 3,400 116,450
Careerbuilder, Incorporated * 29,300 188,619
Check Point Software
Technologies, Ltd. * 49,700 9,877,875
Chemdex Corporation * 9,000 $ 999,000
Cuno, Incorporated * 94,100 1,948,164
Cybersource Corporation * 18,000 931,500
Data Return Corporation * 2,100 112,350
DeVRY, Incorporated * 51,000 949,875
Digimarc Corporation * 500 25,000
Digital Impact, Incorporated * 1,300 65,163
Digital Insight Corporation * 1,800 65,475
Egain Communications
Corporation * 3,500 132,125
El Stio, Incorporated * 3,400 124,950
Exchange Applications
Software * 54,700 3,056,362
Finistar Corporation * 2,100 188,737
Flycast Communications
Corporation * 1,900 246,881
Getthere.com, Incorporated 3,700 148,925
Harris Interactive,
Incorporated * 4,800 62,700
HNC Software, Incorporated 97,900 10,352,925
HomeStore.com, Incorporated * 600 44,550
Hotjobs.com, Ltd. * 26,000 1,135,875
Imanage, Incorporated * 2,000 64,250
Interactive Pictures
Corporation * 6,900 160,856
Interep National Radio Sales,
Incorporated * 21,000 280,875
Keynote Systems, Incorporated * 4,800 354,000
Knot, Incorporated * 3,000 25,313
Management Network Group,
Incorporated * 1,600 52,200
Mediaplex, Incorporated * 2,600 163,150
Mission Critical Software,
Incorporated * 13,700 959,000
MotherNature.com,
Incorporated * 400 2,925
Navisite, Incorporated * 4,100 410,000
NBC Internet, Incorporated * 34,200 2,641,950
Netratings, Incorporated * 800 38,500
Quest Software, Incorporated * 1,000 102,000
Radware, Ltd. * 3,200 138,000
Rare Medium Group,
Incorporated * 14,000 477,750
RSA Security, Incorporated * 128,800 9,982,000
Sciquest.com, Incorporated * 6,000 477,000
Sonicwall, Incorporated * 1,200 48,300
Stamps.com, Incorporated * 2,100 87,413
Symyx Technologies,
Incorporated * 3,400 102,000
US Interactive, Incorporated * 17,200 739,600
Verio, Incorporated * 57,000 2,632,687
</TABLE>
The accompanying notes are an integral part of the financial statements.
81
<PAGE> 124
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
BUSINESS SERVICES - CONTINUED
Whittman Hart, Incorporated * 114,000 $ 6,113,250
-----------
Women Common Networks,
Incorporated * 2,100 29,925
Xpedior, Incorporated * 2,900 83,375
-----------
57,982,770
CHEMICALS - 0.72%
Waters Corporation * 77,200 4,091,600
COMPUTERS & BUSINESS EQUIPMENT - 5.26%
Active Software, Incorporated * 4,100 377,200
Aether Systems, Incorporated * 4,100 293,662
Affiliated Computer Services,
Incorporated, Class A * 98,100 4,512,600
Art Technology Group,
Incorporated * 1,600 205,000
Citrix Systems, Incorporated 34,000 4,182,000
Espeed, Incorporated * 6,800 241,825
Exodus Communications,
Incorporated * 31,600 2,806,475
F5 Networks, Incorporated * 4,200 478,800
Immersion Corporation * 2,600 99,775
Javelin Systems,
Incorporated 6,800 62,475
Korea Thrunet Company, Ltd.,
Shares A * 1,000 67,875
Liberate Technologies * 6,800 1,747,600
McAfee.com Corporation * 2,400 108,000
Metasolv Software,
Incorporated * 1,100 89,925
N2H2, Incorporated * 23,300 547,550
NDS Group PLC, ADR * 1,900 57,950
Netcentives, Incorporated * 4,100 255,481
NetIQ Corporation * 14,300 744,494
Netopia, Incorporated * 9,200 499,675
Netro Corporation * 7,900 402,900
PC-Tel, Incorporated * 19,600 1,029,000
Predictive Systems,
Incorporated * 1,900 124,450
Quintus Corporation * 1,100 50,463
Retek, Incorporated * 4,300 323,575
Saleslogix Corporation * 50,000 2,053,125
Tumbleweed Communications
Corporation * 23,400 1,983,150
Verity, Incorporated * 69,600 2,962,350
Wind River Systems,
Incorporated * 100,000 3,662,500
-----------
29,969,875
CONSTRUCTION MATERIALS - 1.17%
Catalytica, Incorporated * 199,200 2,701,650
JLG Industries, Incorporated 3,900 62,156
Roper Industries 103,000 $3,894,688
----------
6,658,494
CRUDE PETROLEUM & NATURAL GAS - 0.71%
Barrett Resources Corporation * 137,900 4,059,431
----------
DOMESTIC OIL - 1.05%
Basin Exploration,
Incorporated * 22,400 394,800
Chesapeake Energy Corporation * 81,400 193,325
Newfield Exploration Company * 127,600 3,413,300
Pennaco Energy, Incorporated * 79,800 638,400
Range Resources Corporation 39,100 124,631
Tom Brown, Incorporated * 92,000 1,230,500
----------
5,994,956
DRUGS & HEALTH CARE - 1.69%
Alexion Pharmaceuticals,
Incorporated * 15,400 463,925
eBenX, Incorporated * 2,400 108,600
Imclone Systems, Incorporated * 5,000 198,125
Inhale Therapeutic Systems 71,400 3,038,962
Parexel International
Corporation * 112,000 1,323,000
Pharmaceutical Product Development,
Incorporated * 85,900 1,020,063
Prime Hospitality Corporation * 211,000 1,859,437
Renal Care Group,
Incorporated * 62,900 1,470,287
Zonagen, Incorporated * 28,300 123,813
----------
9,606,212
ELECTRICAL EQUIPMENT - 1.37%
Audiovox Corporation, Class A * 19,800 601,425
C-COR.Net Corporation * 10,400 796,900
Electro Scientific
Industries, Incorporated 35,000 2,555,000
Methode Electronics,
Incorporated 16,200 520,425
Plug Power, Incorporated * 5,300 149,725
Power Integrations * 60,000 2,876,250
Power One, Incorporated * 6,500 297,781
----------
7,797,506
ELECTRONICS - 11.72%
Cirrus Logic, Incorporated 13,000 173,063
Cymer, Incorporated * 30,000 1,380,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
82
<PAGE> 125
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
ELECTRONICS - CONTINUED
Digital Microwave
Corporation * 43,200 $ 1,012,500
DII Group, Incorporated * 32,700 2,320,678
Emcore Corporation * 25,000 850,000
Exar Corporation * 1,800 105,975
Flextronics International * 191,400 8,804,400
Foundry Networks,
Incorporated * 1,900 573,206
Jabil Circuit, Incorporated 35,000 2,555,000
JDS Uniphase Corporation * 110,000 17,744,375
JNI Corporation * 5,000 330,000
Kopin Corporation * 4,000 168,000
Lattice Semiconductor
Corporation * 18,000 848,250
LTX Corporation * 11,000 246,125
Metron Technology NV * 2,500 40,156
Micrel, Incorporated * 15,600 888,225
Novellus Systems,
Incorporated * 17,000 2,083,031
PerkinElmer, Incorporated * 143,500 5,982,156
PMC-Sierra, Incorporated * 70,000 11,221,875
Radiant Systems, Incorporated * 8,800 353,650
Rudolph Technologies,
Incorporated * 3,200 107,200
Semtech Corporation * 13,600 708,900
Silicon Image, Incorporated 700 49,044
Sipex Corporation * 108,000 2,652,750
Synopsys, Incorporated * 57,200 3,818,100
Triquint Semiconductor,
Incorporated * 4,300 478,375
Varian Semiconductor
Equipment, Incorporated * 4,000 136,000
Veeco Instruments,
Incorporated * 23,000 1,076,687
Vixel Corporation * 3,000 51,188
Xicor, Incorporated * 1,000 13,688
-----------
66,772,597
FINANCIAL SERVICES - 2.45%
Affiliated Managers Group,
Incorporated * 50,000 2,021,875
Allied Capital Corporation 40,400 739,825
Duff & Phelps Credit Rating
Company 3,300 293,494
Federated Investors,
Incorporated, Class B 90,000 1,805,625
Financial Security Assured
Holdings, Ltd. 77,600 4,044,900
Knight Trimark Group, Class A * 26,000 1,196,000
Labranche & Company,
Incorporated * 77,300 985,575
Metris Companies, Incorporated
16,900 $ 603,119
Mortgage.com, Incorporated * 22,700 131,944
NOVA Corporation * 57,000 1,799,062
Quotesmith.com, Incorporated * 29,400 334,425
-----------
13,955,844
HOTELS & RESTAURANTS - 0.18%
Jack In the Box, Incorporated * 50,000 1,034,375
-----------
HOUSEHOLD APPLIANCES - 0.04%
United States Home and
Garden, Incorporated * 74,100 208,406
-----------
HOUSEHOLD PRODUCTS - 0.01%
Martha Stewart Living,
Incorporated, Class A * 3,100 74,400
-----------
INDUSTRIAL MACHINERY - 1.55%
Mettler-Toledo International,
Incorporated * 158,700 6,060,356
Varco International,
Incorporated * 270,000 2,750,625
-----------
8,810,981
INDUSTRIALS - 0.02%
CVC, Incorporated * 10,500 101,063
-----------
INSURANCE - 1.01%
E.W. Blanch Holdings,
Incorporated 20,100 1,231,125
Mutual Risk Management, Ltd. 58,200 978,487
Reinsurance Group America,
Incorporated 127,400 3,535,350
-----------
5,744,962
LEISURE TIME - 0.35%
Harrahs Entertainment,
Incorporated * 900 23,794
SFX Entertainment,
Incorporated, Class A * 54,000 1,954,125
-----------
1,977,919
NEWSPAPERS - 1.25%
Gemstar Group, Ltd. * 100,000 7,125,000
-----------
PETROLEUM SERVICES - 0.94%
Atwood Oceanics, Incorporated * 113,400 4,380,075
Rowan Companies, Incorporated * 45,000 975,938
-----------
5,356,013
</TABLE>
The accompanying notes are an integral part of the financial statements.
83
<PAGE> 126
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ ------
<S> <C> <C>
PHOTOGRAPHY - 1.56%
Optical Coating Laboratory,
Incorporated 30,000 $ 8,880,000
-----------
REAL ESTATE - 2.39%
Alexandria Real Estate
Equities 11,100 353,119
Camden Property Trust 72,800 1,992,900
Catellus Development
Corporation * 22,500 288,281
CBL & Associates Properties,
Incorporated 9,900 204,187
Developers Diversified Realty 42,400 545,900
Felcor Lodging Trust,
Incorporated 42,000 735,000
General Growth Properties,
Incorporated 24,000 672,000
Health Care Property
Investors, Incorporated 110,800 2,645,350
Innkeepers USA Trust 70,000 573,125
Meristar Hospitality
Corporation 127,900 2,046,400
Pinnacle Holdings,
Incorporated * 54,000 2,288,250
SL Green Realty Corporation 60,000 1,305,000
-----------
13,649,512
RETAIL TRADE - 0.12%
1-800-Flowers.com,
Incorporated, Class A * 62,200 664,763
-----------
SOFTWARE - 16.33%
Accrue Software, Incorporated
* 15,000 811,875
Activision, Incorporated * 117,000 1,791,562
Ardent Software, Incorporated
* 9,500 370,500
BEA Systems, Incorporated * 160,000 11,190,000
Bindview Development
Corporation * 40,000 1,987,500
Bluestone Software,
Incorporated * 5,000 575,000
Broadvision, Incorporated * 71,100 12,091,444
Cysive, Incorporated * 100 7,206
Digex, Incorporated, Class A * 4,400 302,500
Entrust Technologies,
Incorporated * 97,900 5,867,881
Gadzoox Networks,
Incorporated * 5,000 217,813
GRIC Communications,
Incorporated * 3,000 76,125
I2 Technologies, Incorporated * 83,000 16,185,000
Internap Network Services
Corporation * 2,500 432,500
Interspeed, Incorporated * 1,700 $ 30,069
Intertrust Technologies
Corporation * 1,700 199,963
Intuit, Incorporated * 75,600 4,531,275
ITXC Corporation * 8,200 275,725
Keane, Incorporated * 127,500 4,048,125
Liquid Audio, Incorporated 38,700 1,015,875
Mercury Interactive
Corporation * 22,900 2,471,769
Micromuse, Incorporated * 36,300 6,171,000
National Information
Consortium * 9,000 288,000
Ondisplay, Incorporated * 1,300 118,138
OpenTV Corporation, Class A * 1,400 112,350
Quicklogic Corporation * 400 6,600
Sapient Corporation * 60,600 8,540,812
Software.com, Incorporated* 1,700 163,200
Veritas Software Corporation * 87,900 12,580,687
Vitria Technology,
Incorporated * 2,500 585,000
-----------
93,045,494
STEEL - 0.16%
Carpenter Technology
Corporation 34,000 932,875
-----------
TELECOMMUNICATIONS SERVICES - 1.72%
AirGate PCS, Incorporated * 2,100 110,775
Airnet Commerce Corporation * 1,800 65,475
Alaska Communications
Systems, Incorporated * 40,600 502,425
Carrier Access Corporation * 26,800 1,803,975
Clearnet Communications,
Incorporated, Class A * 24,100 828,437
Com21, Incorporated * 62,300 1,397,856
Ibasis, Incorporated * 4,500 129,375
ICG Communications,
Incorporated * 80,000 1,500,000
MCK Communications,
Incorporated * 2,800 63,000
Millicom International Cellular SA* 3,300 205,838
Nice System, Ltd., ADR * 14,200 698,463
Polycom, Incorporated * 38,300 2,439,231
Triton PCS Holdings,
Incorporated * 1,400 63,700
-----------
9,808,550
TELEPHONE - 2.45%
Intermedia Communications,
Incorporated * 34,300 1,331,269
MGC Communications,
Incorporated * 20,500 1,040,375
</TABLE>
The accompanying notes are an integral part of the financial statements.
84
<PAGE> 127
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ ------
<S> <C> <C>
TELEPHONE - CONTINUED
Pacific Gateway Exchange,
Incorporated * 96,400 $ 1,644,825
Voicestream Wireless
Corporation * 46,000 6,546,375
Western Wireless Corporation,
Class A * 51,000 3,404,250
------------
13,967,094
TRANSPORTATION - 1.10%
C. H. Robinson Worldwide 61,000 2,424,750
Expeditores International of
Washington, Incorporated 87,400 3,829,212
------------
6,253,962
TRUCKING & FREIGHT - 0.30%
Air Express International
Corporation 53,000 1,712,563
------------
TOTAL COMMON STOCKS
(Cost: $234,632,862) $413,977,150
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------
<S> <C>
SHORT TERM INVESTMENTS - 20.48%
$116,713,326 Navigator Securities Lending
Trust, 5.86% $116,713,326
--------------
REPURCHASE AGREEMENTS - 6.86%
$39,093,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 2.50%, to be
repurchased at $39,101,144 on
01/03/2000, collateralized by
$37,755,000 U.S. Treasury Notes,
7.00% due 07/15/2006 (valued at
$39,878,719, including interest) $39,093,000
--------------
TOTAL INVESTMENTS (EMERGING SMALL COMPANY
TRUST) (Cost: $390,439,188) $569,783,476
=================
</TABLE>
SMALL COMPANY BLEND TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS - 90.03%
AEROSPACE - 0.52%
REMEC, Incorporated * 11,000 $ 280,500
----------
AGRICULTURE - 0.14%
Fresh Del Monte Produce * 6,000 $ 54,000
Seminis, Incorporated, Class A* 3,600 22,725
----------
76,725
AIR TRAVEL - 1.00%
Atlantic Coast Airlines
Holdings, Incorporated * 11,200 266,000
Midway Airlines Corporation 9,500 58,781
Skywest, Incorporated 7,500 210,000
----------
534,781
APPAREL & TEXTILES - 0.87%
Kellwood Company 7,500 145,781
Stride Rite Corporation 21,500 139,750
Tefron, Ltd. * 14,500 181,250
----------
466,781
AUTO SERVICES - 0.34%
Avis Rental A Car,
Incorporated * 7,000 178,938
----------
AUTOMOBILES - 0.27%
Polaris Industries,
Incorporated 4,000 145,000
----------
BANKING - 1.97%
Banco Santander 5,000 77,188
Bank United Corporation,
Class A 5,300 144,425
Banknorth Group, Incorporated 7,500 200,625
BankUnited Financial
Corporation * 13,000 103,187
Community First Bankshares,
Incorporated 20,500 322,875
First Alliance Company * 45,000 84,375
Republic Security Financial
Corporation 7,000 50,094
Silicon Valley Bancshares * 1,400 69,300
----------
1,052,069
BROADCASTING - 6.88%
Acme Communications,
Incorporated * 800 26,600
BHC Communications,
Incorporated, Class A * 1,500 240,000
Citadel Communications
Corporation * 6,500 421,687
Classic Communications,
Incorporated, Class A * 6,000 219,375
Cox Radio, Incorporated,
Class A * 2,500 249,375
</TABLE>
The accompanying notes are an integral part of the financial statements.
85
<PAGE> 128
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
BROADCASTING - CONTINUED
Cumulus Media, Incorporated,
Class A * 5,500 $ 279,125
Entercom Communications
Corporation * 2,500 165,000
Gray Communications Systems,
Incorporated, Class B
5,000 67,500
Insight Communications,
Incorporated, Class A * 10,700 316,988
Radio One, Incorporated,
Class A * 4,400 404,800
Sirius Satellite Radio,
Incorporated * 8,000 356,000
Spanish Broadcasting Systems,
Incorporated, Class A *
7,000 281,750
Tivo, Incorporated * 1,100 37,125
World Wrestling Federation
Entertainment,
Incorporated, Class A * 8,400 144,900
XM Satellite Radio Holdings,
Incorporated, Class A * 7,000 266,875
Young Broadcasting,
Incorporated, Class A * 4,000 204,000
----------
3,681,100
BUILDING MATERIALS & CONSTRUCTION - 0.34%
Elcor Chemical Corporation 6,000 180,750
----------
BUSINESS SERVICES - 14.54%
ADVO, Incorporated * 8,500 201,875
AGENCY.COM, Incorporated * 3,500 178,500
Alloy Online, Incorporated 24,000 378,000
Armor Holdings, Incorporated 15,000 196,875
Ashford Common, Incorporated *
7,000 77,000
Autoweb.com, Incorporated * 40,400 439,350
Banta Corporation 6,500 146,656
Boston Communications Group *
12,000 63,000
Caribiner International,
Incorporated * 16,000 58,000
CDnow N2K, Incorporated * 9,000 88,875
click2learn.com, Incorporated 12,000 133,500
Condor Technology Solutions * 15,000 20,625
Costar Group, Incorporated * 7,000 251,125
Cybergold, Incorporated * 3,000 53,063
DSP Group, Incorporated * 4,000 372,000
Epiphany, Incorporated * 1,500 334,687
Fogdog, Incorporated * 5,000 47,500
Harris Interactive,
Incorporated * 3,300 $ 43,106
Intelligroup, Incorporated * 23,000 569,250
iVillage, Incorporated * 9,000 182,250
Kendle International,
Incorporated * 12,000 118,500
Knot, Incorporated * 8,200 69,188
Korn/Ferry International * 8,000 291,000
Mac-Gray Corporation * 18,000 68,625
Netratings, Incorporated * 4,100 197,312
NVIDIA Corporation * 10,000 469,375
OneMain.com, Incorporated * 4,000 60,000
Online Resources * 7,500 124,687
Quanta Services, Incorporated *
6,200 175,150
Razorfish, Incorporated,
Class A * 5,687 540,976
Renaissance Worldwide,
Incorporated * 11,000 81,125
RSA Security, Incorporated * 10,000 775,000
Startek, Incorporated * 2,800 101,500
Technisource, Incorporated * 17,000 99,875
Tier Technologies,
Incorporated, Class B * 16,000 135,000
TMP Worldwide, Incorporated * 2,500 355,000
Wesco International,
Incorporated * 19,000 168,625
Wireless Facilities,
Incorporated * 700 30,538
Xpedior, Incorporated * 2,800 80,500
----------
7,777,213
CHEMICALS - 2.02%
H.B. Fuller Company 6,000 335,625
Spartech Corporation 5,500 177,375
United States Plastic Lumber
Corporation * 17,000 130,687
Valence Technology,
Incorporated * 23,000 437,000
----------
1,080,687
COAL - 0.33%
Consol Energy, Incorporated 17,500 177,188
----------
COMPUTERS & BUSINESS EQUIPMENT - 1.72%
Freemarkets, Incorporated * 100 34,131
JFAX.COM, Incorporated * 7,000 47,031
Logitech International SA, ADR * 6,000 165,375
MIPS Technologies,
Incorporated * 6,900 358,800
</TABLE>
The accompanying notes are an integral part of the financial statements.
86
<PAGE> 129
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMPUTERS & BUSINESS EQUIPMENT - CONTINUED
Remedy Corporation * 6,500 $ 307,937
VA Linux Systems,
Incorporated * 20 4,133
----------
917,407
CONSTRUCTION MATERIALS - 3.25%
Applied Industrial
Technologies, Incorporated 12,000 199,500
Columbus McKinnon
Corporation 12,500 126,563
Comfort Systems USA,
Incorporated * 12,000 88,500
Donaldson, Incorporated 8,000 192,500
Gasonics International
Corporation * 11,500 227,125
NN Ball & Roller,
Incorporated 10,000 72,500
Oshkosh Truck Corporation,
Class B 6,750 197,859
Pameco Corporation * 12,000 48,750
SpeedFam-IPEC, Incorporated *
18,600 240,637
White Capital Industries
Corporation * 10,000 150,000
Zygo Corporation * 9,700 195,213
----------
1,739,147
COSMETICS & TOILETRIES - 0.52%
Natrol, Incorporated * 18,000 126,000
Natures Sunshine Products,
Incorporated 11,000 88,000
Nu Skin Enterprises,
Incorporated, Class A * 7,000 63,438
----------
277,438
DOMESTIC OIL - 1.80%
Cross Timbers Oil Company 10,200 92,437
Devon Energy Corporation 2,000 65,750
Insignia Financial Group,
Incorporated * 9,000 78,188
Midcoast Energy Resources,
Incorporated 24,500 410,375
Valero Energy Corporation 16,000 318,000
----------
964,750
DRUGS & HEALTH CARE - 9.33%
Algos Pharmaceutical
Corporation * 3,000 33,000
American Retirement
Corporation * 18,600 147,637
Anesta Corporation * 16,000 275,000
Aviron * 4,000 63,250
Capital Senior Living
Corporation * 15,000 $ 75,938
Chromavision Medical Systems,
Incorporated * 20,000 305,000
Focal, Incorporated * 18,000 69,750
Healthcentral.com * 9,000 65,813
Heska Corporation * 23,000 51,750
KOS Pharmaceuticals,
Incorporated * 12,000 67,500
Lifepoint Hospitals,
Incorporated * 15,000 177,187
Novoste Corporation * 11,000 181,500
Ocular Sciences, Incorporated *
7,000 132,125
Orthodontic Centers America,
Incorporated * 10,000 119,375
PE Corp-Celera Genomics Group *
6,000 894,000
PlanetRx.com, Incorporated * 6,600 95,700
Protein Design Labs,
Incorporated * 7,500 525,000
Sangstat Medical Corporation 13,000 386,750
Sunrise Assisted Living,
Incorporated * 1,500 20,625
Triad Hospitals, Incorporated * 20,000 302,500
Trigon Healthcare,
Incorporated * 9,000 265,500
Trimeris, Incorporated * 11,000 259,875
ViroPharma, Incorporated * 8,000 296,000
Wesley Jessen VisionCare,
Incorporated * 4,800 181,800
----------
4,992,575
ELECTRICAL EQUIPMENT - 3.51%
Dupont Photomasks,
Incorporated * 4,000 193,000
Harmon Industries,
Incorporated 14,000 169,750
Intergrated Electrical
Services * 10,000 100,625
Power Integrations * 3,200 153,400
Power One, Incorporated * 16,000 733,000
Rayovac Corporation * 12,000 226,500
Sensormatic Electrics
Corporation * 15,000 261,562
TeleCorp PCS, Incorporated,
Class A * 1,000 38,000
----------
1,875,837
</TABLE>
The accompanying notes are an integral part of the financial statements.
87
<PAGE> 130
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
ELECTRONICS - 8.14%
ASM International NV * 35,000 $ 805,000
BE Semiconductor Industries * 17,000 229,500
C Cube Microsystems,
Incorporated * 8,000 498,000
Cambridge Technology
Partners, Incorporated * 8,500 223,125
Cymer, Incorporated * 8,400 386,400
Etec Systems, Incorporated * 15,000 673,125
LoJack Corporation * 25,000 168,750
LTX Corporation * 24,000 537,000
Pac-West Telecomm,
Incorporated * 8,000 212,000
Photronics, Incorporated * 8,100 231,862
Rudolph Technologies,
Incorporated * 4,000 134,000
Zoran Corporation * 4,600 256,450
----------
4,355,212
FINANCIAL SERVICES - 1.81%
American Capital Strategies, Ltd. 6,000 136,500
Americredit Corporation * 13,000 240,500
Circle International Group,
Incorporated 5,000 111,250
Fulton Financial 15,000 270,000
Corporation
Harbor Florida Bancshares,
Incorporated 6,000 77,625
Medallion Financial
Corporation 7,500 134,531
----------
970,406
FOOD & BEVERAGES - 2.43%
Beringer Wine Estates
Holdings, Class B * 4,000 159,500
Corn Products International,
Incorporated 14,000 458,500
Flowers Industries,
Incorporated 5,000 79,688
Robert Mondavi Corporation,
Class A * 4,500 156,375
Suiza Foods Corporation * 11,300 447,762
----------
1,301,825
FOREST PRODUCTS - 0.70%
Caraustar Industries,
Incorporated 9,500 228,000
Wausau-Mosinee Paper
Corporation 12,300 143,756
----------
371,756
FUNERAL SERVICES - 1.03%
Carriage Services,
Incorporated, Class A * 28,500 169,219
Stewart Enterprises,
Incorporated, Class A 80,000 $ 380,000
----------
549,219
GAS & PIPELINE UTILITIES - 1.93%
Eastern Enterprises 7,000 402,062
Energen Corporation 12,400 223,975
Louis Dreyfus Natural Gas
Corporation * 8,000 145,000
South Jersey Industries,
Incorporated 4,600 130,813
Washington Gas Light Company
4,700 129,250
----------
1,031,100
HOTELS & RESTAURANTS - 0.50%
Buffets, Incorporated * 10,000 100,000
CKE Restaurants,
Incorporated 28,500 167,438
----------
267,438
HOUSEHOLD APPLIANCES - 0.61%
Libbey, Incorporated 6,000 172,500
Pillowtex Corporation 12,000 74,250
Restoration Hardware,
Incorporated * 12,000 81,750
----------
328,500
HOUSEHOLD PRODUCTS - 0.09%
Martha Stewart Living,
Incorporated, Class A * 2,000 48,000
----------
INDUSTRIAL MACHINERY - 0.17%
UNOVA, Incorporated * 7,000 91,000
----------
INSURANCE - 1.38%
Chicago Title Corporation 4,000 185,000
ESG Re, Ltd. 1,800 12,488
Fidelity National Financial
Corporation 7,000 100,625
First American Financial
Corporation 13,000 161,687
MIIX Group, Incorporated 5,600 81,900
Philadelphia Consolidated
Holding Corporation 3,600 52,200
Trenwick Group, Incorporated 8,600 145,663
----------
739,563
LEISURE TIME - 2.53%
Arctic Cat, Incorporated 15,000 150,000
Championship Auto Racing
Team * 12,000 276,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
88
<PAGE> 131
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
LEISURE TIME - CONTINUED
Cheap Tickets, Incorporated * 18,000 $ 246,375
IMAX Corporation * 4,800 131,400
Intrawest Corporation 6,600 114,263
Speedway Motorsports,
Incorporated * 9,000 250,312
Steiner Leisure, Ltd. * 8,000 133,500
West Marine, Incorporated * 6,000 49,500
----------
1,351,350
PAPER - 0.28%
Ivex Packaging Corporation * 15,000 150,000
----------
PETROLEUM SERVICES - 0.36%
Seacor Smit, Incorporated 3,700 191,475
----------
PUBLISHING - 1.96%
Applied Graphics Technologies *
14,500 125,062
Hollinger International,
Incorporated, Class A 35,000 452,812
Jostens, Incorporated 8,000 194,500
Media General, Incorporated,
Class A 3,000 156,000
Ziff-Davis, Incorporated * 7,400 117,013
----------
1,045,387
RAILROADS & EQUIPMENT - 0.20%
Wisconsin Central
Transportation Corporation * 8,000 107,500
----------
REAL ESTATE - 1.03%
Assisted Living Concepts,
Incorporated * 62,100 128,081
CB Richard Ellis Services,
Incorporated * 7,500 92,813
Meristar Hospitality
Corporation 13,000 208,000
Trammell Crow Company * 10,700 124,387
----------
553,281
RETAIL TRADE - 1.19%
FTD.com, Incorporated, Class A *
5,000 26,250
Lithia Motors, Incorporated,
Class A * 4,600 82,225
Sharper Image Corporation * 12,000 152,250
Sportsline USA, Incorporated * 5,500 275,688
UBid, Incorporated * 3,700 98,050
----------
634,463
SANITARY SERVICES - 0.66%
Ionics, Incorporated * 12,500 351,563
----------
SOFTWARE - 5.75%
About.com, Incorporated * 2,500 $ 224,375
Acclaim Entertainment,
Incorporated * 35,500 181,937
Digex, Incorporated, Class A * 3,300 226,875
Documentum, Incorporated * 2,300 137,712
Epicor Software Corporation * 15,500 78,469
Liquid Audio, Incorporated * 4,800 126,000
Mail.com, Incorporated, Class A * 2,100 39,375
Midway Games, Incorporated * 22,000 526,625
MP3.com, Incorporated * 3,800 120,413
National Information
Consortium * 3,300 105,600
Official Payments Corporation *
5,500 286,000
OpenTV Corporation, Class A * 800 64,200
Policy Management Systems
Corporation * 30,000 766,875
Worldgate Communications,
Incorporated * 4,000 190,250
----------
3,074,706
TELECOMMUNICATIONS SERVICES - 4.86%
Alaska Communications
Systems, Incorporated * 6,000 74,250
Allied Riser Communications
Corporation * 16,000 331,000
Aspect Communications,
Incorporated * 20,000 782,500
Carrier Access Corporation * 4,000 269,250
Focal Communications
Corporation * 3,800 91,675
ICG Communications,
Incorporated * 14,000 262,500
Polycom, Incorporated * 3,000 191,063
Superior Telecom, Incorporated
14,300 220,756
Time Warner Telecom,
Incorporated, Class A * 4,800 239,700
Triton PCS Holdings,
Incorporated * 3,000 136,500
----------
2,599,194
TELEPHONE - 1.00%
Hickory Tech Corporation 13,000 195,000
Tritel, Incorporated, Class A * 10,700 339,056
----------
534,056
TIRES & RUBBER - 0.33%
Bandag, Incorporated 7,000 175,000
----------
TRANSPORTATION - 0.59%
M.S. Carriers, Incorporated * 10,000 238,750
</TABLE>
The accompanying notes are an integral part of the financial statements.
89
<PAGE> 132
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
TRANSPORTATION - CONTINUED
U. S. Xpress Enterprises,
Incorporated, Class A * 10,500 $ 77,438
316,188
TRUCKING & FREIGHT - 1.15%
Hub Group, Incorporated
Class A * 11,000 220,000
Landstar Systems,
Incorporated * 5,000 214,062
Werner Enterprises,
Incorporated 13,000 182,813
-----------
616,875
TOTAL COMMON STOCKS
(Cost: $40,217,745) $48,153,943
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
REPURCHASE AGREEMENTS - 9.97%
<S> <C>
$5,332,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.50% to be
repurchased at $5,333,111 on
01/03/2000, collateralized by
$5,025,000 U.S. Treasury Bonds,
7.25% due 08/15/2022 (valued at
$5,439,563, including interest). $ 5,332,000
-----------
TOTAL INVESTMENTS (SMALL COMPANY BLEND
TRUST) (Cost: $45,549,745) $53,485,943
===========
</TABLE>
MID CAP GROWTH TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 81.05%
AIR TRAVEL - 0.16%
Southwest Airlines Company 74,650 $ 1,208,397
-----------
APPAREL & TEXTILES - 1.32%
American Eagle Outfitters,
Incorporated * 66,300 2,983,500
Cintas Corporation 46,000 2,443,750
Jones Apparel Group,
Incorporated * 118,600 3,217,025
Tommy Hilfiger Corporation * 66,300 1,545,619
-----------
10,189,894
AUTO PARTS - 0.26%
Danaher Corporation 41,500 $ 2,002,375
-----------
AUTOMOBILES - 0.68%
Harley Davidson,
Incorporated 82,200 5,265,938
-----------
BANKING - 1.84%
Bank United Corporation,
Class A 33,200 904,700
Citigroup, Incorporated 39,800 2,211,388
Northern Trust Corporation 60,400 3,201,200
Old Kent Financial
Corporation 27,085 958,132
Providian Financial
Corporation 63,000 5,736,937
Zions BanCorporation 19,900 1,177,831
-----------
14,190,188
BROADCASTING - 3.37%
Adelphia Communications
Corporation, Class A * 48,500 3,182,813
American Telephone & Telegraph
Corporation-Liberty Media
Group, Class A * 99,500 5,646,625
AMFM, Incorporated * 78,300 6,126,975
Hispanic Broadcasting
Corporation * 38,600 3,559,644
Univision Communications,
Incorporated, Class A * 49,000 5,007,187
Westwood One, Incorporated * 32,500 2,470,000
-----------
25,993,244
BUSINESS SERVICES - 13.81%
America Online, Incorporated * 190,000 14,333,125
At Home Corporation, Series A * 50,000 2,143,750
Check Point Software
Technologies, Ltd. * 26,000 5,167,500
Choicepoint, Incorporated * 40,900 1,692,238
CMG Information Services,
Incorporated * 17,600 4,873,000
Concord EFS, Incorporated * 223,900 5,765,425
Exodus Communications,
Incorporated * 18,200 1,616,388
Express Scripts,
Incorporated, Class A * 32,500 2,080,000
Fiserv, Incorporated * 129,250 4,951,891
Inktomi Corporation * 60,200 5,342,750
Interpublic Group
Companies, Incorporated 62,500 3,605,469
J.D. Edwards & Company * 62,500 1,867,187
</TABLE>
The accompanying notes are an integral part of the financial statements.
90
<PAGE> 133
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BUSINESS SERVICES - CONTINUED
Lamar Advertising Company,
Class A * 103,000 $ 6,237,937
Lycos, Incorporated * 139,000 11,059,187
OmniCom Group,
Incorporated 86,400 8,640,000
Paychex, Incorporated 62,200 2,488,000
Real Networks, Incorporated * 33,200 3,994,375
Valassis Communications,
Incorporated * 37,300 1,575,925
Verio, Incorporated * 72,600 3,353,212
Yahoo, Incorporated * 36,500 15,793,094
------------
106,580,453
CHEMICALS - 0.14%
Waters Corporation * 20,200 1,070,600
------------
COMPUTERS & BUSINESS EQUIPMENT - 5.86%
Affiliated Computer Services,
Incorporated, Class A * 33,200 1,527,200
Apple Computer,
Incorporated * 33,600 3,454,500
Business Objects SA, ADR * 23,200 3,100,100
Citrix Systems,
Incorporated * 79,600 9,790,800
DST Systems, Incorporated * 26,500 2,022,281
EMC Corporation * 74,000 8,084,500
Gateway, Incorporated * 69,100 4,979,519
Microsoft Corporation * 55,000 6,421,250
Symbol Technologies,
Incorporated 91,500 5,815,969
------------
45,196,119
CRUDE PETROLEUM & NATURAL GAS - 0.05%
Santa Fe Snyder Corporation * 50,000 400,000
------------
DOMESTIC OIL - 0.26%
EOG Resources,
Incorporated 115,000 2,019,688
------------
DRUGS & HEALTH CARE - 5.40%
Bausch & Lomb, Incorporated 33,200 2,272,125
Biogen, Incorporated * 86,900 7,343,050
Biomet, Incorporated 82,900 3,316,000
Chiron Corporation * 33,200 1,406,850
Forest Labs, Incorporated * 60,000 3,686,250
Jones Pharma, Incorporated 133,950 5,818,453
Medicis Pharmaceutical
Corporation, Class A * 45,000 1,915,313
Medimmune, Incorporated * 16,000 2,654,000
Medtronic, Incorporated 123,000 4,481,812
Millipore Corporation 43,000 $ 1,660,875
PE Corp-PE Biosystems
Group 58,900 7,086,406
-----------
41,641,134
ELECTRICAL EQUIPMENT - 3.30%
American Power Conversion
Corporation * 180,900 4,771,237
ASM Lithography Holding NV * 27,900 3,173,625
KLA-Tencor Corporation * 39,200 4,365,900
Sanmina Corporation * 32,660 3,261,918
Solectron Corporation * 104,000 9,893,000
-----------
25,465,680
ELECTRONICS - 13.58%
Adaptec, Incorporated * 99,500 4,962,562
Altera Corporation * 61,400 3,043,138
Analog Devices, Incorporated * 90,500 8,416,500
Applied Materials,
Incorporated * 15,800 2,001,663
Atmel Corporation * 84,400 2,495,075
Conexant Systems,
Incorporated * 103,500 6,869,812
Cypress Semiconductor
Corporation * 94,700 3,065,913
Electronics For Imaging,
Incorporated * 67,500 3,923,437
General Instrument
Corporation * 63,000 5,355,000
JDS Uniphase Corporation * 103,400 16,679,712
Lexmark International Group,
Incorporated, Class A * 33,200 3,004,600
Linear Technology
Corporation 41,400 2,962,688
LSI Logic Corporation * 50,300 3,395,250
Maxim Integrated Products,
Incorporated * 70,200 3,312,562
Microchip Technology,
Incorporated * 35,200 2,409,000
Motorola, Incorporated 24,900 3,666,525
Novellus Systems,
Incorporated * 17,400 2,132,044
PMC-Sierra, Incorporated * 51,200 8,208,000
Scientific-Atlanta,
Incorporated 65,300 3,632,312
Synopsys, Incorporated * 20,000 1,335,000
Teradyne, Incorporated * 66,900 4,415,400
Vishay Intertechnology,
Incorporated * 80,000 2,530,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
91
<PAGE> 134
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
ELECTRONICS - CONTINUED
Vitesse Semiconductor
Corporation * 70,000 $ 3,670,625
Xilinx, Incorporated * 72,400 3,291,938
------------
104,778,756
FINANCIAL SERVICES - 3.33%
American Express Company 19,100 3,175,375
Capital One Financial
Corporation 77,900 3,753,806
Charles Schwab Corporation 152,200 5,840,675
Compass Bancshares,
Incorporated 33,200 740,775
Federated Investors,
Incorporated, Class B 68,500 1,374,281
Goldman Sachs Group,
Incorporated 60,000 5,651,250
Knight Trimark Group, Class A * 55,000 2,530,000
SLM Holding Corporation 40,000 1,690,000
Southwest Securities Group,
Incorporated * 8,000 353,000
TCF Financial Corporation 23,200 577,100
------------
25,686,262
GAS & PIPELINE UTILITIES - 1.07%
Cooper Cameron Corporation * 91,600 4,482,675
El Paso Energy Corporation 49,700 1,928,981
Enron Corporation 41,500 1,841,563
------------
8,253,219
GOLD - 0.10%
Global Industries,
Incorporated * 89,800 774,525
------------
HOMEBUILDERS - 0.00%
Champion Enterprises,
Incorporated * 3,100 26,544
------------
HOTELS & RESTAURANTS - 0.73%
Brinker International,
Incorporated * 66,300 1,591,200
Outback Steakhouse,
Incorporated * 70,200 1,820,812
Park Place Entertainment
Corporation * 175,900 2,198,750
------------
5,610,762
HOUSEHOLD APPLIANCES - 1.84%
Corning, Incorporated 110,000 14,183,125
------------
INDUSTRIAL MACHINERY - 0.27%
SPX Corporation * 16,600 $ 1,341,487
Varco International,
Incorporated * 76,600 780,363
------------
2,121,850
INSURANCE - 0.81%
AFLAC, Incorporated 35,000 1,651,563
MGIC Investment Corporation 76,700 4,616,381
------------
6,267,944
PETROLEUM SERVICES - 2.07%
Apache Corporation 59,400 2,194,087
BJ Services Company * 65,300 2,730,356
Diamond Offshore Drilling,
Incorporated 30,800 941,325
R & B Falcon Corporation * 123,300 1,633,725
Rowan Companies,
Incorporated * 74,600 1,617,888
Smith International,
Incorporated * 59,700 2,966,344
Transocean Offshore,
Incorporated 49,700 1,674,269
Weatherford International,
Incorporated 55,100 2,200,556
------------
15,958,550
PUBLISHING - 0.26%
McGraw-Hill Companies,
Incorporated 33,000 2,033,625
------------
RETAIL TRADE - 5.34%
Barnes & Noble, Incorporated * 30,000 618,750
Bed Bath & Beyond,
Incorporated * 91,200 3,169,200
CDW Computer Centers,
Incorporated * 50,000 3,931,250
Circuit City Stores,
Incorporated 51,900 2,338,744
Dollar Tree Stores,
Incorporated * 59,100 2,862,656
Family Dollar Stores,
Incorporated 94,500 1,541,531
Kohls Corporation * 69,100 4,988,156
Lands' End, Incorporated 8,100 281,475
Linens'n Things, Incorporated * 43,400 1,285,725
Lowe's Companies,
Incorporated 70,000 4,182,500
Mens Wearhouse,
Incorporated * 83,500 2,452,813
Ross Stores, Incorporated 66,300 1,189,256
</TABLE>
The accompanying notes are an integral part of the financial statements.
92
<PAGE> 135
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RETAIL TRADE - CONTINUED
Staples, Incorporated * 195,900 $ 4,064,925
Talbots, Incorporated 50,700 2,262,488
Tandy Corporation 66,300 3,261,131
Williams Sonoma,
Incorporated * 59,700 2,746,200
------------
41,176,800
SOFTWARE - 6.96%
BMC Software,
Incorporated * 60,000 4,796,250
Electronic Arts * 47,500 3,990,000
Intuit, Incorporated * 130,200 7,803,862
Siebel Systems,
Incorporated * 40,400 3,393,600
USA Networks,
Incorporated * 55,000 3,038,750
VeriSign, Incorporated * 63,600 12,143,625
Veritas Software Corporation * 129,400 18,520,375
------------
53,686,462
TELECOMMUNICATIONS SERVICES - 5.81%
ADC Telecommunications,
Incorporated * 67,400 4,890,712
Broadwing, Incorporated 33,200 1,224,250
Comverse Technology,
Incorporated * 51,700 7,483,575
Cox Communications,
Incorporated, Class A * 55,000 2,832,500
Crown Castle International
Corporation * 89,800 2,884,825
General Motors Corporation,
Class H * 19,000 1,824,000
Global Telesystems Group,
Incorporated * 48,600 1,682,775
Lucent Technologies,
Incorporated 23,105 1,728,543
Metromedia Fiber Network,
Incorporated, Class A * 63,000 3,020,063
Nokia Corporaton, ADR 51,700 9,823,000
QUALCOMM, Incorporated * 33,200 5,847,350
RCN Corporation * 32,800 1,590,800
------------
44,832,393
TELEPHONE - 1.56%
CenturyTel, Incorporated 74,600 3,534,175
NTL, Incorporated * 47,000 5,863,250
Western Wireless Corporation,
Class A * 39,300 2,623,275
------------
12,020,700
TRUCKING & FREIGHT - 0.87%
Kansas City Southern
Industries, Incorporated 90,000 $ 6,716,250
------------
TOTAL COMMON STOCKS
(Cost: $430,092,609) $625,351,477
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
CORPORATE BONDS - 0.11%
<S> <C> <C>
COMPUTERS & BUSINESS EQUIPMENT - 0.11%
Exodus Communications
Incorporated, 4.75% due
07/15/2008 $650,000 $ 883,187
---------
TOTAL CORPORATE BONDS
(Cost: $650,000) $ 883,187
---------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
SHORT TERM INVESTMENTS - 18.84%
<S> <C>
$35,915,000 Federal Home Loan Bank,
1.50% due 01/03/2000 $ 35,912,007
109,461,135 Navigator Securities Lending
Trust, 5.86% 109,461,135
------------
$145,373,142
------------
TOTAL INVESTMENTS (MID CAP GROWTH
Trust) (Cost: $576,115,751) $771,607,806
============
</TABLE>
MID CAP STOCK TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 91.87%
AIR TRAVEL - 0.47%
Mesaba Holdings,
Incorporated 42,000 $ 480,375
----------
APPAREL & TEXTILES - 2.17%
G & K Services, Class A 68,600 2,220,925
----------
AUTO SERVICES - 1.75%
United Rentals, Incorporated * 104,400 1,787,850
----------
BANKING - 4.52%
Mercantile Bankshares
Corporation 31,600 1,009,225
National Commerce Bancorp 48,200 1,093,537
</TABLE>
The accompanying notes are an integral part of the financial statements.
93
<PAGE> 136
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BANKING - CONTINUED
Westamerica Bancorporation 35,000 $ 977,813
Wilmington Trust Corporation 32,000 1,544,000
-----------
4,624,575
BUSINESS SERVICES - 19.83%
ACNielson Corporation * 59,300 1,460,262
Acxiom Corporation 80,400 1,929,600
Affiliated Computer Services,
Incorporated, Class A * 28,600 1,315,600
American Management Systems,
Incorporated 57,800 1,813,475
BISYS Group, Incorporated * 23,500 1,533,375
Catalina Marketing
Corporation * 27,000 3,125,250
DeVRY, Incorporated * 77,500 1,443,437
Fiserv, Incorporated 42,000 1,609,125
NCO Group, Incorporated * 39,600 1,192,950
Ritchie Brothers Auctioneers,
Incorporated * 28,500 790,875
SunGuard Data Systems,
Incorporated * 51,700 1,227,875
Systems & Computer Technology
Corporation 65,000 1,056,250
TETRA Technologies,
Incorporated * 65,300 1,003,988
Visual Networks,
Incorporated * 10,000 792,500
-----------
20,294,562
CHEMICALS - 6.78%
Macdermid, Incorporated 41,000 1,683,562
Minerals Technologies,
Incorporated 50,500 2,023,156
Sterling Commerce,
Incorporated * 45,300 1,543,031
Waters Corporation * 32,000 1,696,000
-----------
6,945,749
COMPUTERS & BUSINESS EQUIPMENT - 10.51%
DST Systems, Incorporated * 31,100 2,373,319
Investment Technology
Group 30,100 865,375
Macromedia, Incorporated * 15,000 1,096,875
National Instruments
Corporation * 25,000 956,250
Sterling Software,
Incorporated 105,000 3,307,500
Symbol Technologies,
Incorporated 23,900 1,519,144
Verity, Incorporated * 15,000 638,437
-----------
10,756,900
CONSTRUCTION MATERIALS - 1.55%
Donaldson, Incorporated 29,800 $ 717,062
Nordson Corporation 18,000 868,500
-----------
1,585,562
CONTAINERS & GLASS - 1.06%
Bemis, Incorporated 31,000 1,081,125
-----------
DRUGS & HEALTH CARE - 6.62%
ALZA Corporation 35,000 1,211,875
Biomet, Incorporated 34,000 1,360,000
Covance, Incorporated * 144,700 1,564,569
Genzyme Corporation 46,000 2,070,000
Haemonetics Corporation * 24,000 571,500
-----------
6,777,944
ELECTRICAL EQUIPMENT - 1.58%
Littelfuse, Incorporated * 66,800 1,620,944
-----------
ELECTRIC UTILITIES - 2.03%
Montana Power Company 57,700 2,080,806
-----------
ELECTRONICS - 5.96%
C Cube Microsystems,
Incorporated * 17,200 1,070,700
Dallas Semiconductor
Corporation 37,200 2,397,075
Synopsys, Incorporated * 33,900 2,262,825
Xilinx, Incorporated * 8,200 372,844
-----------
6,103,444
FINANCIAL SERVICES - 1.79%
NOVA Corporation * 58,000 1,830,625
-----------
FOOD & BEVERAGES - 3.46%
Beringer Wine Estates
Holdings, Class B * 58,000 2,312,750
Black Box Corporation * 18,300 1,226,100
-----------
3,538,850
FURNITURE & FIXTURES - 1.33%
Ethan Allen Interiors,
Incorporated 42,300 1,356,244
-----------
INDUSTRIAL MACHINERY - 1.10%
AptarGroup, Incorporated 44,700 1,123,088
-----------
INSURANCE - 2.00%
Reinsurance Group America,
Incorporated 73,620 2,042,955
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
94
<PAGE> 137
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
LEISURE TIME - 1.82%
Speedway Motorsports,
Incorporated * 67,100 $ 1,866,219
-----------
OFFICE FURNISHINGS & SUPPLIES - 1.69%
Miller Herman, Incorporated 75,000 1,725,000
-----------
PETROLEUM SERVICES - 0.80%
Hanover Compressor Company * 21,600 815,400
-----------
RETAIL GROCERY - 1.82%
Whole Foods Market,
Incorporated * 40,200 1,864,275
-----------
RETAIL TRADE - 3.45%
Bed Bath & Beyond,
Incorporated * 59,500 2,067,625
Family Dollar Stores,
Incorporated 89,500 1,459,969
-----------
3,527,594
SANITARY SERVICES - 1.32%
Ionics, Incorporated 48,000 1,350,000
-----------
SOFTWARE - 3.44%
Policy Management Systems
Corporation 32,200 823,113
Shared Medical Systems
Corporation 53,000 2,699,687
-----------
3,522,800
TRANSPORTATION - 0.98%
C. H. Robinson Worldwide 25,100 997,725
-----------
TRUCKING & FREIGHT - 2.04%
Air Express International
Corporation 42,700 1,379,744
Werner Enterprises,
Incorporated 50,500 710,156
-----------
2,089,900
TOTAL COMMON STOCKS
(Cost: $90,405,024) $94,011,436
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
REPURCHASE AGREEMENTS - 8.13%
<S> <C>
$8,316,000 Repurchase Agreement with Paine
Webber dated 12/31/1999 at 3.00%,
to be repurchased at $8,318,079
on 01/03/2000, collateralized by
$8,340,000 U.S. Treasury Notes,
6.375% due 03/31/2001 (valued at
$8,493,342, including interest.
$ 8,316,000
------------
TOTAL INVESTMENTS (MID CAP STOCK
TRUST) (Cost: $98,721,024) $102,327,436
============
</TABLE>
OVERSEAS TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 86.77%
ARGENTINA - 0.02%
El Stio, Incorporated * 2,900 $ 106,575
----------
AUSTRALIA - 1.39%
AMP, Ltd. 30,500 336,991
Australia & New Zealand
Bank Group 180,100 1,310,170
Broken Hill Proprietary
Company 39,132 513,829
Cable & Wireless Optus, Ltd.* 292,500 977,414
National Australia Bank, Ltd. 88,720 1,357,101
News Corporation 120,345 1,168,506
News Corporation, Ltd., ADR 4,900 187,425
Rio Tinto, Ltd.-AUD 5,500 118,148
Westpac Banking
Corporation, Ltd. 12,900 88,982
----------
6,058,566
BELGIUM - 0.29%
Electrabel 1,780 582,752
Fortis B 19,500 703,623
----------
1,286,375
BRAZIL - 0.24%
Grupo Televisa SA, ADR * 15,300 1,044,225
----------
CANADA - 0.87%
Barrick Gold Corporation 5,900 105,248
BCE, Incorporated 17,500 1,589,972
Celestica, Incorporated * 23,200 1,298,621
Cinar Films, Incorporated,
Class B * 15,700 384,650
</TABLE>
The accompanying notes are an integral part of the financial statements.
95
<PAGE> 138
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
CANADA - CONTINUED
Inco, Ltd. 17,300 $ 405,393
-----------
3,783,884
DENMARK - 0.23%
Carlsberg 8,600 325,894
Novo Nordisk AS, Series B 1,800 238,737
Unidanmark AS 6,200 436,330
-----------
1,000,961
FINLAND - 2.95%
Asko Oyj 4,300 76,236
Helsingin Puhelin 9,500 791,424
Metsa Serla Oyj * 22,800 265,275
Metso Oyj 18,100 235,206
Nokia AB Oyj 48,100 8,721,633
Sampo Corporation 14,700 513,839
Sonera Group Oyj 11,200 767,762
UPM-Kymmene Oyj 36,800 1,482,819
-----------
12,854,194
FRANCE - 9.91%
Alcatel Alsthom Cie Generale
D'Electric 5,700 1,309,152
Aventis SA 21,650 1,258,386
AXA-UAP 19,700 2,746,519
Banque Nationale de Paris 27,776 2,562,981
Canal Plus 5,076 738,873
Cap Gemini SA 4,700 1,193,105
Carrefour 9,200 1,696,901
Castorama Dubois 600 182,532
Club Mediterranee 2,400 277,545
Coflexip SA, ADR 11,000 418,000
Compagnie de St-Gobain 3,200 601,831
Companhia Cerveja Ria
Brahma 11,200 156,800
France Telecom, ADS 36,950 4,887,192
Groupe Danone 2,654 625,600
L'Oreal SA 700 561,648
Lafarge 4,100 477,443
Michelin (CGDE)-B 8,800 345,722
Rhodia SA 51,300 1,159,633
Sanofi Synthelabo * 27,020 1,125,216
Schneider Electric SA 4,600 361,205
Societe Generale 7,860 1,829,004
Suez Lyonn Eaux 10,500 1,682,828
Television Francaise 5,200 2,723,873
TOTAL Fina SA, B Shares 75,997 10,143,610
Union Assurance, Ltd. 2,800 328,880
Vivendi 42,702 3,856,370
-----------
43,250,849
GERMANY - 6.81%
Allianz AG Holding 9,150 $ 3,073,952
Aventis SA 7,351 426,530
BASF AG 27,550 1,415,377
Bayer AG 28,700 1,358,814
Deutsche Bank AG 14,800 1,250,101
Deutsche Telekom AG 107,250 7,638,304
K & S AG 75,200 1,064,325
Mannesmann AG 29,600 7,141,303
PrimaCom AG 5,100 309,276
RWE AG 13,800 540,765
SAP AG-Vorzug 2,300 1,385,509
Siemens AG 17,750 2,258,302
VEBA AG 23,100 1,122,767
Viag AG 25,100 460,177
Wella AG 11,200 248,211
-----------
29,693,713
HONG KONG - 0.53%
Cheung Kong Holdings, Ltd. 38,000 481,508
China Telecom, Ltd. 188,000 1,172,959
Dah Sing Financial 73,200 291,915
Wing Hang Bank, Ltd. 109,000 372,985
-----------
2,319,367
IRELAND - 0.30%
Bank Of Ireland 164,924 1,312,475
ITALY - 2.73%
Assicurazioni Generali 42,400 1,400,941
Banca di Roma 196,400 252,448
Banca Intesa SPA 194,830 790,936
ENI SPA, ADR 434,300 2,388,706
Olivetti SPA 315,500 913,729
San Paolo IMI SPA 65,000 883,295
Telecom Italia Mobile 193,200 2,158,335
Telecom Italia SPA 170,700 2,407,364
Unicredito Italiano SPA 144,700 711,326
-----------
11,907,080
JAPAN - 28.32%
Aiful Corporation 4,000 489,380
Aiwa Company 6,000 124,498
Asahi Bank 91,000 561,124
Asahi Chemical Industries 41,000 210,678
Canon, Incorporated 21,000 834,492
CSK Corporation 24,500 3,980,621
Dai Ichi Kangyo Bank 127,000 1,187,090
Dai Nippon Printing 19,000 303,122
Daiwa Securities Company, Ltd. 290,000 4,538,612
DDI Corporation 270 3,699,716
Familymart Company 2,300 153,078
Fuji Bank 130,000 1,263,482
Fuji Photo Film Company 26,000 949,202
</TABLE>
The accompanying notes are an integral part of the financial statements.
96
<PAGE> 139
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
JAPAN - CONTINUED
Fujisawa Pharmaceutical
Company, Ltd. 25,000 $ 606,832
Fujitsu, Ltd. 65,000 2,964,667
Furukawa Electric Company, Ltd. 772,000 11,711,853
Hirose Electric 1,900 426,045
Hitachi Chemical 15,000 279,094
Hitachi Information System 3,000 174,709
Hitachi, Ltd. 309,000 4,959,969
Honda Motor Company 21,000 781,051
Hoya Corporation 9,000 709,112
Ito-Yokado Company, Ltd. 45,000 4,888,911
Kaneka Corporation 17,000 217,471
Kansai Electric Power
Company 52,600 916,909
Kao Corporation 17,000 485,025
Koa Corporation 14,000 404,228
Kyocera Corporation 52,600 13,642,948
Matsushita Electric
Industrial Company, Ltd. 78,000 2,160,517
Minolta Company 53,000 206,460
Mitsubishi Electric
Corporation 230,000 1,485,759
Mitsubishi Estate Company, Ltd. 86,000 839,209
Mitsubishi Trust & Banking 61,000 537,340
Mitsui Fudosan Company 34,000 230,283
Mitsumi Electric 5,000 156,602
NEC Corporation 68,000 1,620,632
Nichicon Corporation 87,000 2,690,810
Nikko Securities 270,000 3,416,952
Nintendo Company 3,300 548,439
Nippon Comsys Corporation 10,000 207,497
Nippon Steel Corporation 94,000 219,888
Nippon Telegraph & Telephone
Corporation 338 5,789,371
Nippon Zeon Company 61,000 386,288
Nomura Securities Company, Ltd. 133,000 2,401,732
NTT Data Corporation 15 345,013
NTT Mobile Communication
Network, Incorporated 61 2,346,384
Omron Corporation 204,000 4,702,163
Orix Corporation 7,500 1,689,831
Ricoh Company, Ltd. 42,000 791,739
Rohm Company 2,000 822,159
Sakura Bank 150,000 869,140
Secom Company, Ltd. 12,000 1,321,327
SEGA Enterprises 20,400 648,919
Sharp Corporation 56,000 1,433,297
Shin-Etsu Chemical Company,
Ltd. 19,000 818,244
Softbank Corporation 6,500 6,221,983
Sony Corporation 16,000 4,745,033
Takeda Chemical Industries, Ltd. 68,000 3,361,065
Tokai Bank 39,000 245,826
Tokyo Electric Power
Company 117,700 $ 3,156,484
Tokyo Tomin Bank 3,400 130,449
Toyota Motor Corporation 40,000 1,937,947
Trans Cosmos, Incorporated 3,800 1,621,611
Yamaha Motor Company 22,000 152,452
Yamanouchi Pharmaceutical
Company, Ltd. 21,000 733,777
Yokogawa Electric 89,000 628,061
Yoshitomi Pharm 32,000 407,165
------------
123,491,767
KOREA - 0.47%
Daelim Industrial Company * 14,400 165,495
Samsung Electronics
Company 8,100 1,897,490
------------
2,062,985
MEXICO - 1.09%
Cifra SA de CV * 343,800 689,414
Grupo Financiero Banamex * 181,400 727,515
Grupo Financiero Bancomer,
SA de CV * 1,621,900 677,860
Telefonos De Mexico SA, ADR 13,500 1,518,750
TV Azteca, SA, ADR 126,100 1,134,900
------------
4,748,439
NETHERLANDS - 5.46%
ABN AMRO Holdings 47,900 1,196,651
Aegon NV 13,000 1,255,863
Ahold Kon NV 31,010 918,082
Akzo Nobel NV, ADS 36,400 1,826,043
Equant NV * 29,700 3,326,400
Fortis Amev NV 59,300 2,135,556
Heineken NV 13,000 634,086
International Nederlanded
Groep NV 55,214 3,333,851
KPN NV 29,300 2,860,037
Nutreco Holding NV 17,100 527,967
Philips Electronics NV 22,098 3,005,156
Royal Volker Wessels Stevin NV 7,900 129,319
Samas Groep 8,200 102,427
TNT Post Group NV 10,800 309,518
Vendex NV 42,700 1,135,565
Ver Ned Uitgevers NV* 14,900 783,196
Wolters Kluwer 10,264 347,405
------------
23,827,122
NEW ZEALAND - 0.08%
Fletcher Challenge-Building 120,000 176,814
Lion Nathan, Ltd. 79,300 184,382
------------
361,196
</TABLE>
The accompanying notes are an integral part of the financial statements.
97
<PAGE> 140
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
NORWAY - 0.53%
Bergesen ASA-A 69,700 $ 1,270,834
Bergesen ASA-B 29,000 496,160
DNB Holding ASA 112,700 463,045
Frontline, Ltd. 5,000 26,850
Stolt Comex Seaway SA 5,000 55,312
-----------
2,312,200
PORTUGAL - 0.08%
Electric De Portugal 19,900 347,402
-----------
SINGAPORE - 0.19%
Overseas Union Bank 73,584 430,768
United Overseas Bank 46,675 411,962
-----------
842,730
SOUTH AFRICA - 0.07%
Angloglold, Ltd. * 2,300 118,307
Gold Fields 35,000 169,172
-----------
287,479
SPAIN - 2.42%
Altadis SA 18,354 261,063
Argentaria SA 15,700 368,973
Banco Bilbao Vizcaya SA 34,100 485,718
Banco Santander Central,
Hispano, SA 193,448 2,190,336
Endesa SA 35,900 712,790
Iberdrola SA 51,600 715,234
Tabacalera 18,300 261,770
Telefonica SA 222,300 5,553,559
-----------
10,549,443
SWEDEN - 2.25%
ABB, Ltd. * 5,322 648,598
Atlas Copco AB, Series B 5,300 150,735
Electrolux AB 32,200 809,825
L.M. Ericsson Telefonaktiebolaget,
Series B 94,600 6,081,349
Nordbanken Holding AB 73,100 429,545
Sandvik AB, B Shares 3,500 111,470
Skandinaviska Enskilda Baken,
Series A 23,700 239,535
Svenska Handelsbanken,
Series A 31,400 394,852
Swedish Match Company 172,900 603,494
Volvo AB, Series B 13,400 346,457
-----------
9,815,860
SWITZERLAND - 4.25%
ABB AG * 8,753 1,070,556
Ares Serono SA 300 640,583
Credit Suisse Group 11,335 2,253,047
Julius Baer Holdings 235 709,885
Nestle SA 1,816 $ 3,326,805
Novartis AG 2,204 3,236,169
Roche Holdings AG 229 2,718,144
Schweizerische Ruckversichererungs-
Gesellschaft 350 718,991
Swatch Group 2,600 605,790
Swisscom AG 1,500 606,670
Synthes Stratec, Incorporated 1,500 686,742
UBS AG 7,250 1,957,860
-----------
18,531,242
UNITED KINGDOM - 14.25%
Allied Domecq PLC 43,700 216,001
Allied Zurich PLC 183,500 2,163,775
Amvescap 87,700 1,019,965
Astra Zeneca Group PLC 24,300 1,009,556
Bass PLC 3,233 40,681
BG Group PLC 50,311 324,866
Blue Circle Industries 51,600 301,725
Booker * 167,000 315,613
Boots Company 30,400 297,577
BP Amoco PLC 487,748 4,923,491
British Aerospace PLC 188,945 1,242,176
British American Tobacco PLC 73,100 413,274
British Telecommunication 214,512 5,197,519
BTP 16,600 88,285
Cable & Wireless ADS 42,100 722,204
Cadbury Schweppes 91,100 548,884
Caradon 713,200 1,785,650
Centrica PLC 102,800 298,480
CGU PLC 59,521 960,481
Courtaulds Textile 7,800 8,190
Diageo PLC 103,900 829,079
Glaxo Wellcome PLC 100,281 2,841,198
Granada Group 18,700 188,788
Hanson PLC 80,700 676,541
Hays PLC 17,900 285,669
HSBC Holdings-GBP 104,700 1,451,066
HSBC Holdings-HKD 22,087 309,704
Johnson Matthey 37,500 368,894
Kingfisher 69,880 775,466
Lloyds TSB Group PLC 220,500 2,738,976
Marconi PLC * 79,900 1,409,362
Morgan Crucible Company 40,000 186,729
National Grid Group 76,600 582,778
National Westminster 18,000 386,703
Pearson PLC 38,800 1,262,874
Peninsular & Oriental Steam
Navigation Company 26,700 442,930
Prudential Corporation 67,100 1,309,311
Rentokil Initial 474,900 1,725,989
Reuters Group PLC 99,700 1,384,991
</TABLE>
The accompanying notes are an integral part of the financial statements.
98
<PAGE> 141
\MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
UNITED KINGDOM - CONTINUED
Rio Tinto, Ltd. 27,100 $ 650,491
Royal & Sun Alliance 57,845 433,548
Royal Bank Scotland Group 44,300 784,273
Safeway 85,700 297,281
Scottish & Newcastle PLC 41,000 284,777
Scottish & Southern Energy 47,600 378,675
SmithKline Beecham PLC 274,300 3,478,153
Standard Chartered 80,800 1,285,585
The Shell Transport and
Trading Company PLC 601,500 4,998,898
Tomkins 31,300 102,129
Unilever PLC 218,677 1,607,192
Vodafone Airtouch Group PLC 1,262,250 6,291,880
WPP Group PLC 33,500 524,892
------------
62,153,215
UNITED STATES - 1.03%
Asia Pacific Fund,
Incorporated 7,000 78,750
Asia Tigers Fund,
Incorporated 16,200 165,038
Baker Hughes, Incorporated 10,200 214,837
European Warrants Fund,
Incorporated 26,000 482,625
Halliburton Company * 9,500 382,375
India Fund, Incorporated * 3,900 65,325
Morgan Stanley Asia Pacific
Fund, Incorporated 28,900 341,381
Newmont Mining Corporation 26,700 654,150
Noble Drilling Corporation * 4,900 160,475
Omi Corporation 59,900 123,544
Overseas Shipholding Group,
Incorporated * 13,900 205,894
Smith International,
Incorporated * 1,600 79,500
Templeton Dragon Fund,
Incorporated 59,800 586,787
WBK STRYPES Trust 23,600 756,675
Weatherford International,
Incorporated * 4,600 183,713
------------
4,481,069
TOTAL COMMON STOCKS
(Cost: $290,908,400) $378,430,413
------------
PREFERRED STOCK - 0.61%
AUSTRALIA - 0.14%
News Corporation, Ltd., ADR 17,400 581,813
------------
GERMANY - 0.47%
Munchener
Ruckversicherungs-Gesellschaft AG 8,102 $ 2,055,077
------------
TOTAL PREFERRED STOCK
(Cost: $2,199,650) $ 2,636,890
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 0.13%
U.S. TREASURY BOND - 0.13%
United States Treasury Principal Strip,
zero coupon due 11/15/2027 $3,400,000 $570,418
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $665,946) $570,418
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
<S> <C>
SHORT TERM INVESTMENTS - 7.19%
$31,253,763 Navigator Securities Lending
Trust, 5.86% $ 31,253,763
100,000 United States Treasury Bills,
zero coupon due 03/02/2000 **** 99,154
------------
$ 31,352,917
============
REPURCHASE AGREEMENTS - 5.30%
$23,118,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 2.50%, to be
repurchased at $23,122,816 on
01/03/2000, collateralized by
$22,870,000 U.S. Treasury Bonds,
6.75% due 08/15/2026 (valued at
$23,584,688, including interest) $ 23,118,000
------------
TOTAL INVESTMENTS (OVERSEAS TRUST)
(Cost: $348,145,759) $436,108,638
============
</TABLE>
The Trust had the following five top industry concentrations at December 31,
1999 (as a percentage of total value of investments):
<TABLE>
<S> <C>
Banking 9.24%
Telephone 8.11%
Electrical Equipment 7.81%
Telecommunications Services 7.01%
Financial Services 5.49%
</TABLE>
The accompanying notes are an integral part of the financial statements.
99
<PAGE> 142
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
INTERNATIONAL STOCK TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 85.88%
ARGENTINA - 0.19%
Banco De Galicia Buenos
Aires SA, ADR 6,675 $ 132,248
Banco Frances Del Rio De La
Plata, ADR 5,790 137,151
Telefonica de Argentina SA,
Class B, ADR 6,700 206,863
----------
476,262
AUSTRALIA - 1.96%
Brambles Industries, Ltd. 10,000 276,538
Broken Hill Proprietary
Company 43,675 573,481
Colonial, Ltd. 102,190 456,868
Commonwealth Bank of
Australia 30,116 518,597
Lend Lease Corporation 22,904 320,878
News Corporation 67,425 654,672
Publishing & Broadcasting, Ltd. 62,000 473,376
TABCORP Holdings, Ltd. 39,000 264,075
Telstra Corporation, Ltd. * 115,060 625,446
Telstra Corporation - Ins. Recp 25,000 88,135
Westpac Banking
Corporation, Ltd. 78,242 539,701
----------
4,791,767
BELGIUM - 0.87%
Dexia Credit Company B 1,418 227,262
Fortis B 21,468 774,635
KBC Bankverzekerin Holding NPV 18,850 1,015,887
UCB SA 2,620 113,620
----------
2,131,404
BRAZIL - 1.72%
Companhia Brasileira de
Destribuicao Grupo Pao de
Acucar, ADR 13,946 450,630
Companhia Energeticade Minas
Gerais, ADR 9,027 203,842
Grupo Televisa SA, ADR * 7,800 532,350
Telecomunicacoes Brasileiras,
ADR, Pfd. Block 21,208 2,725,228
Telesp Participacoes 8,597,256 202,261
Unibanco Uniao De Barncos
Bras, GDR 2,674 80,554
----------
4,194,865
CANADA - 0.70%
Alcan Aluminum, Ltd. 8,020 330,023
Celestica, Incorporated * 16,748 929,514
Nortel Networks Corporation 3,350 $ 338,481
Royal Bank Canada 2,710 119,214
-----------
1,717,232
CHINA - 0.09%
Huaneng Power International,
Incorporated, ADR 20,000 211,250
-----------
DENMARK - 0.30%
Den Danske Bank 2,285 250,491
Tele Danmark AS 4,950 367,788
Unidanmark AS 1,685 118,583
-----------
736,862
FINLAND - 1.88%
Nokia AB Oyj 25,286 4,584,932
-----------
FRANCE - 9.10%
Alcatel Alsthom Cie Generale
D'Electric 6,285 1,443,512
Aventis SA 6,060 352,232
AXA-UAP 10,131 1,412,436
Banque Nationale de Paris 11,330 1,045,456
Cap Gemini SA 3,600 913,868
Carrefour 11,452 2,112,272
Cemex SA, ADR * 13,600 379,100
Compagnie de Staint-Gobain 3,605 678,000
Groupe Danone 640 150,861
Hermes International 3,280 494,955
L'Oreal SA 285 228,671
Lafarge 2,393 278,664
Legrand SA 3,650 868,834
Pinault-Printemps-Redoute 2,725 719,197
Sanofi Synthelabo * 28,838 1,200,925
Schneider Electric SA 13,172 1,034,304
Societe Generale 3,079 716,476
Sodexho Alliance SA 5,960 1,054,868
Television Francaise 4,060 2,126,716
Total Fina SA, B Shares 19,413 2,591,127
Vivendi 26,886 2,428,045
-----------
22,230,519
GERMANY - 5.67%
Allianz AG Holding 2,770 930,584
Aventis SA 3,965 230,063
Bayer AG 15,201 719,698
Bayerische Hypo-Und
Vereinsbank AG 17,613 1,202,938
Deutsche Bank AG 14,206 1,199,928
Deutsche Telekom AG 16,615 1,183,314
Dresdner Bank AG 16,977 923,496
Gehe AG 14,870 576,703
Mannesmann AG 18,430 4,446,426
</TABLE>
The accompanying notes are an integral part of the financial statements.
100
<PAGE> 143
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
GERMANY - CONTINUED
Rhoen-Klinikum AG 8,130 $ 298,926
SAP AG 1,930 950,706
Siemens AG 4,500 572,527
VEBA AG 12,770 620,681
-----------
13,855,990
HONG KONG - 2.57%
Cable & Wireless HKT, Ltd. 120,600 348,295
Cheung Kong Holdings, Ltd. 52,000 658,905
China Telecom, Ltd. 293,000 1,828,070
CLP Holdings, Ltd. 76,000 350,010
Dao Heng Bank Group, Ltd. 38,000 196,025
Henderson Land
Development 76,000 488,840
Hutchison Whampoa, Ltd. 108,000 1,569,949
Pacific Century * 235,000 545,668
Sun Hung Kai Properties, Ltd. 28,000 291,760
-----------
6,277,522
INDIA - 0.19%
Icici, Ltd., ADR * 23,549 326,742
Mahanagar Telephone
Nigam, Ltd., GDR 13,000 143,000
-----------
469,742
ITALY - 4.65%
Assicurazioni Generali 21,860 722,278
Banca Popolare di Brescia SPA 18,000 1,592,922
ENI SPA, ADR 164,873 906,823
Italgas SPA 30,000 113,629
Mediolanum SPA 47,370 620,336
San Paolo IMI SPA 49,015 666,072
Seat Pagine Gialle SPA * 103,000 338,248
Tecnost SPA 104,400 394,377
Telecom Italia Mobile 322,162 3,599,035
Telecom Italia SPA 125,177 1,765,358
Uncredito Italiano SPA 133,538 656,455
-----------
11,375,533
JAPAN - 20.14%
Bridgestone Corporation 12,000 264,266
Canon, Incorporated 58,000 2,304,786
Citizen Watch Company 19,000 120,877
Daiichi Pharmaceutical
Company 11,000 143,085
Daiwa House Industry
Company, Ltd. 33,000 245,473
DDI Corporation 68 931,780
Denso Corporation 47,000 1,122,443
East Japan Railway 89 479,975
Fanuc, Ltd. 7,200 916,825
Fuji Television Network,
Incorporated 26 356,269
Fujitsu, Ltd. 39,000 $ 1,778,800
Hitachi, Ltd. 42,000 674,171
Honda Motor Company 4,000 148,772
Ito-Yokado Company, Ltd. 7,000 760,497
Kao Corporation 24,000 684,741
Kokuyo Company 19,000 252,912
Komori Corporation 17,000 324,293
Kuraray Company 45,000 455,858
Kyocera Corporation 17,000 4,409,318
Makita Corporation 25,000 225,115
Marui Company, Ltd. 36,000 537,692
Matsushita Electric
Industrial Company, Ltd. 70,000 1,938,925
Mitsubishi Corporation 39,000 301,175
Mitsubishi Heavy Industries, Ltd. 192,000 640,814
Mitsui Fudosan Company 83,000 562,161
Murata Manufacturing
Company, Ltd. 17,000 3,993,345
NEC Corporation 93,000 2,216,453
Nippon Telegraph &
Telephone Corporation 229 3,922,384
Nomura Securities Company, Ltd. 71,000 1,282,128
NTT Mobile Communication
Network, Incorporated 70 2,692,571
Sankyo Company 39,000 801,605
Sekisui Chemical Company, Ltd. 52,000 230,557
Sekisui House 39,000 345,454
Seven Eleven Japan
Company, Ltd. 4,000 634,237
Shin-Etsu Chemical
Company, Ltd. 18,000 775,179
Shiseido Company 19,000 277,087
Softbank Corporation 300 287,169
Sony Corporation 14,700 4,359,499
Sumitomo Bank, Ltd. 50,000 684,643
Sumitomo Corporation 68,000 659,567
Sumitomo Electric Industries, Ltd. 72,000 832,260
TDK Corporation 13,000 1,795,341
Tokio Marine & Fire
Insurance Company 17,000 198,835
Tokyo Electron, Ltd. 2,200 301,458
Toppan Printing Company 31,000 309,484
Toshiba Corporation 146,000 1,114,613
Uny Company, Ltd. 21,000 205,334
Yamanouchi Pharmaceutical
Company, Ltd. 21,000 733,777
-----------
49,234,003
</TABLE>
The accompanying notes are an integral part of the financial statements.
101
<PAGE> 144
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
KOREA - 1.14%
Korea Telecom Corporation, ADR 13,000 $ 971,750
Pohang Iron & Steel, Ltd., ADR 5,840 204,400
Samsung Electronics
Company 5,496 1,287,482
SK Telecom Company, Ltd. 90 322,589
-----------
2,786,221
LUXEMBOURG - 0.05%
Societe Europeenne des
Satellites 884 129,122
-----------
MEXICO - 1.16%
Cemex SA * 20,000 111,873
Fomento Econ Mexico 103,000 459,831
Grupo Modelo SA, Series C 89,000 244,222
Kimberly-Clark de Mexico,
SA de CV 58,000 226,491
Telefonos De Mexico SA, ADR 16,000 1,800,000
-----------
2,842,417
NETHERLANDS - 7.95%
ABN AMRO Holdings 33,460 835,907
Akzo Nobel NV, ADS 3,420 171,568
ASM Lithography Holdings NV 20,540 2,282,213
CSM NV 22,700 484,777
Elsevier NV 45,962 549,116
Equant NV * 6,874 780,393
Fortis Amev NV 32,930 1,185,900
Gucci Group NV * 5,814 665,703
International Nederlanded
Groep NV 43,099 2,602,341
KPN NV 4,290 418,756
Philips Electronics NV 15,219 2,069,665
Royal Dutch Petroleum
Company 19,758 1,211,111
STMicroelectronics NV 13,110 2,017,931
TNT Post Group NV 4,290 122,947
United Pan-Europe
Communications NV * 2,586 330,836
Ver Ned Uitgevers NV 11,270 592,391
Wolters Kluwer 92,076 3,116,491
-----------
19,438,046
NEW ZEALAND - 0.19%
Telecom Corporation of New
Zealand, Ltd. 98,000 460,845
-----------
NORWAY - 0.44%
Norsk Hydro AS 5,283 221,678
Orkla SA 49,590 854,627
-----------
1,076,305
PORTUGAL - 0.41%
Jeronimo Martins SGPS, SA 38,690 $ 989,949
----------
SINGAPORE - 0.61%
Singapore Press Holdings, Ltd. 14,710 318,842
Singapore Telecommunications,
Ltd 100,000 206,545
United Overseas Bank 109,824 969,326
----------
1,494,713
SPAIN - 2.60%
Argentaria SA 14,750 346,647
Banco Bilbao Vizcaya SA 16,370 233,173
Banco Popular Espanol SA 3,180 207,418
Banco Santander Central,
Hispano, SA 97,512 1,104,090
Endesa SA 24,574 487,913
Gas Natural SDG SA 12,408 285,857
Iberdrola SA 42,326 586,686
Repsol-YPF, SA 24,049 557,677
Telefonica SA 103,393 2,533,327
----------
6,342,788
SWEDEN - 2.85%
ABB, Ltd. * 4,052 493,821
Atlas Copco AB, Series B 10,200 290,093
Electrolux AB 47,970 1,206,438
Esselte AB 3,430 26,000
Hennes & Mauritz AB 66,060 2,212,610
L.M. Ericsson Telefonaktiebolaget,
Series B 14,670 943,059
Nordbanken Holding AB 121,521 714,073
Sandvik AB, B Shares 12,870 409,892
Securitas AB 36,336 657,627
----------
6,953,613
SWITZERLAND - 4.06%
ABB AG * 6,970 852,482
Adecco SA 3,490 2,717,829
Credit Suisse Group 3,726 740,614
Nestle SA 1,298 2,377,860
Roche Holdings AG 143 1,697,356
Swisscom AG 742 300,099
UBS AG 4,568 1,233,587
----------
9,919,827
TAIWAN - 0.12%
Hon Hai Precision Industry,
Ltd., GDR * 19,660 293,488
----------
UNITED KINGDOM - 14.28%
Abbey National 43,000 689,370
Astra Zeneca Group PLC 36,576 1,519,569
BG Group PLC 42,456 274,145
</TABLE>
The accompanying notes are an integral part of the financial statements.
102
<PAGE> 145
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
UNITED KINGDOM - CONTINUED
BP Amoco PLC 86,000 $ 868,113
Cable & Wireless ADS 147,800 2,535,433
Cadbury Schweppes 158,000 951,961
Caradon 111,300 278,663
CBT Group Public PLC, ADR * 13,585 455,097
Centrica PLC 48,600 141,110
Compass Group PLC 142,000 1,949,667
David S. Smith Holdings 54,000 172,708
Diageo PLC 137,540 1,097,512
Electrocomponents PLC 34,000 376,203
GKN PLC 14,000 229,308
Glaxo Wellcome PLC 83,000 2,351,586
Hays PLC 8,800 140,441
Hilton Group PLC 66,000 214,286
HSBC Holdings-HKD 52,800 740,361
John Laing PLC 20,000 89,811
Kingfisher 185,000 2,052,966
Marconi PLC * 61,800 1,090,095
National Westminster 176,000 3,781,094
Rank Group PLC 20,540 66,356
Reed International PLC 233,300 1,752,350
Rio Tinto, Ltd. 53,150 1,275,779
Safeway 52,000 180,381
SmithKline Beecham PLC 181,000 2,295,099
Tesco 206,200 626,181
The Shell Transport and
Trading Company PLC 369,500 3,070,811
Tomkins 208,096 678,998
Unilever PLC 173,071 1,272,005
United News & Media PLC 49,300 621,546
Vodafone Airtouch Group PLC 212,000 1,056,747
------------
34,895,752
TOTAL COMMON STOCKS
(Cost: $152,970,792) $209,910,969
------------
PREFERRED STOCK - 0.72%
AUSTRALIA - 0.16%
News Corporation 45,626 390,893
------------
BRAZIL - 0.49%
Banco Itau SA 2,600,000 223,083
CIA Energetica Minas Gerais * 5,070,000 113,665
Petrol Brasileiros 2,738,000 697,193
Telesp Celular SA 2,085,000 165,046
------------
1,198,987
GERMANY - 0.07%
Fielmann AG 550 16,455
Fresenius AG 840 154,003
------------
170,458
TOTAL PREFERRED STOCK
(Cost: $1,410,937) $ 1,760,338
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
<S> <C>
SHORT TERM INVESTMENTS - 6.62%
$16,168,417 Navigator Securities Lending
Trust, 5.86% $ 16,168,417
------------
REPURCHASE AGREEMENTS - 6.78%
$16,569,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 2.50%, to be
repurchased at $16,572,452 on
01/03/2000, collateralized by
$12,215,000 U.S. Treasury Bonds,
12.00% due 08/15/2013 (valued at
$16,902,506, including interest) $ 16,569,000
------------
TOTAL INVESTMENTS (INTERNATIONAL STOCK
TRUST) (Cost: $187,119,146) $244,408,724
============
</TABLE>
The Trust had the following five top industry concentrations at December 31,
1999 (as a percentage of total value of investments):
<TABLE>
<S> <C>
Banking 9.89%
Telecommunications Services 8.61%
Electronics 7.35%
Telephone 5.77%
Drugs & Health Care 5.30%
</TABLE>
INTERNATIONAL VALUE TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 92.29%
ARGENTINA - 2.13%
Irsa Inversiones 257,859 $ 835,584
Nortel Inversora SA, ADR,
Series B 32,500 629,688
Telefonica de Argentina SA,
Class B, ADR 22,300 688,512
----------
2,153,784
AUSTRALIA - 4.85%
Australia & New Zealand Bank
Group 162,900 1,185,045
Broken Hill Proprietary
Company 103,000 1,352,458
Leighton Holdings 190,000 735,937
Lend Lease Corporation 67,700 948,457
News Corporation 79,100 677,675
----------
4,899,572
</TABLE>
The accompanying notes are an integral part of the financial statements.
103
<PAGE> 146
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
AUSTRIA - 1.55%
Bank Austria AG 15,460 $ 872,123
Wienerberger
Baustoffindustrie AG 31,700 689,433
----------
1,561,556
BERMUDA - 2.21%
ACE, Ltd. 37,708 629,252
Mutual Risk Mangement, Ltd. 35,000 588,438
XL Capital, Ltd., Shares A * 19,600 1,016,750
----------
2,234,440
BRAZIL - 4.03%
Companhia Vale Do Rio
Doce, ADR 21,300 543,150
Embratel Participacoes SA, ADR 78,800 2,147,300
Telemig Celular
Participacoes 1,400 64,662
Telesp Participacoes SA, ADR 54,000 1,319,625
----------
4,074,737
CANADA - 4.73%
Barrick Gold Corporation - CAD 35,900 640,405
Kinross Gold Corporation 166,100 308,381
Laidlaw, Incorporated 141,300 739,047
Laurentian Bank of Canada * 32,100 394,718
Newbridge Networks
Corporation 47,000 1,060,438
Renaissance Energy, Ltd. * 72,200 725,251
Transcanada Pipelines, Ltd. 105,000 909,248
----------
4,777,488
CHINA - 0.15%
Beijing Datang Power
Generation Company, Ltd. 906,000 150,349
----------
DENMARK - 2.10%
Danske Traelast 12,500 1,099,623
Unidanmark AS 14,600 1,027,487
----------
2,127,110
FINLAND - 2.77%
Konecranes International 22,600 869,210
Merita Oyj 166,000 976,565
Merita PLC 40,000 235,720
UPM-Kymmene Oyj 17,800 717,233
----------
2,798,728
FRANCE - 6.13%
Alcatel Alsthom Cie Generale
D'Electric 9,400 2,158,952
Aventis SA 22,300 1,296,167
AXA-UAP 7,700 1,073,512
Elf Aquitaine SA 2,600 400,724
Michelin (CGDE)-B Shares 12,000 471,440
Sylea 8,100 395,737
Total Fina SA, B Shares 3,000 400,421
----------
6,196,953
GERMANY - 4.95%
Adidas-Salomon AG 16,500 1,238,284
Aventis SA 8,927 517,974
BASF AG 29,300 1,505,283
Celanese AG * 1,190 21,697
Merck & Company,
Incorporated 3,100 96,182
Prosieben Media AG 13,500 784,675
VEBA AG 17,300 840,860
----------
5,004,955
HONG KONG - 6.21%
Cheung Kong Holdings, Ltd. 128,000 1,621,920
CLP Holdings, Ltd. 205,500 946,408
First Tractor Company 2,416,000 341,879
Guangdong Kelon Electrical
Holdings Company, Ltd. 450,000 341,545
Hong Kong Aircraft 311,600 517,095
Moulin International 6,600,000 636,779
Holding
New Asia Realty, Class A 347,000 430,765
Smartone Telecommunications
Holdings, Ltd. 180,000 868,335
Techtronic Industries 3,500,000 567,312
----------
6,272,038
INDONESIA - 0.29%
Perusahaan Perseroan Indo
Sat, ADR 13,400 289,775
----------
ITALY - 2.44%
Banca Naz Del Lavoro * 333,600 1,112,332
Telecom Italia SPA RISP 222,200 1,354,190
----------
2,466,522
JAPAN - 7.07%
Best Denki Company 54,000 507,390
Kurita Water Industries 51,000 810,649
Maezawa Kyuso Industry 35,000 235,000
Nippon Telegraph & Telephone
Corporation, ADR 14,900 1,283,263
Nomura Securities Company, Ltd. 75,000 1,354,360
Ono Pharmaceutical 24,000 643,633
Sony Corporation 7,800 2,313,204
----------
7,147,499
KOREA - 0.98%
Korea Telecom Corporation, ADR 13,200 986,700
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
104
<PAGE> 147
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
MEXICO - 3.13%
Corporacion GEO, SA * 243,800 $ 918,592
Desc SA de CV 567,500 473,166
Gener SA, ADR 15,800 244,900
Telefonos De Mexico SA, ADR 13,600 1,530,000
----------
3,166,658
NETHERLANDS - 8.19%
Akzo Nobel NV, ADS 17,700 887,939
Arcadis NV 110,000 869,846
Internatio Muller 43,500 911,450
International Nederlanded
Groep NV 13,300 803,061
Koninklijke Ahrend NV 59,000 829,099
N.V. Twentsche Kabel
Holding 30,000 1,054,695
Philips Electronics NV 7,760 1,055,300
Stork NV 37,000 540,443
Wolters Kluwer 39,000 1,320,031
----------
8,271,864
NEW ZEALAND - 3.01%
Fletcher Challenge, Ltd.
Energy 343,200 896,610
Kiwi Income Property Trust 1,040,400 510,992
Telecom Corporation of New
Zealand, Ltd. 232,500 1,093,331
Tranz Rail Holdings, Ltd., ADR 100,000 537,500
----------
3,038,433
NORWAY - 0.75%
Norsk Hydro AS 18,000 755,292
----------
PERU - 0.36%
Telefonica del Peru SA,
Class B, ADR * 27,000 361,125
----------
PHILIPPINES - 0.65%
Philippine Long Distance
Telephone Company, ADR 25,500 659,812
----------
PORTUGAL - 0.87%
Portugal Telecom 80,000 877,603
----------
SINGAPORE - 0.35%
Asia Pulp & Paper, Ltd., ADR 44,500 350,438
----------
SOUTH AFRICA - 0.56%
Anglogold, Ltd., ADR 22,100 567,694
----------
SPAIN - 3.04%
Iberdrola SA 74,700 $ 1,035,426
Repsol-YPF, SA 40,000 927,568
Teva Pharmaceutical
Industries, Ltd., ADR 15,514 1,112,160
-----------
3,075,154
SWEDEN - 3.90%
ABB, Ltd. * 6,013 732,810
Autoliv, Incorporated * 21,500 628,875
ForeningsSparbanken AB,
Series A 71,150 1,045,217
Svedala Industries 41,400 759,008
Volvo AB, Series B 30,100 778,235
-----------
3,944,145
SWITZERLAND - 0.97%
ABB AG * 8,000 978,459
-----------
THAILAND - 0.21%
Bangkok Bank * 84,100 212,120
-----------
UNITED KINGDOM - 13.70%
Allied Zurich PLC 87,200 1,028,235
British Aerospace PLC 22,254 146,304
British Airways 162,700 1,061,750
Heywood Williams Group PLC 204,200 874,087
Hunting PLC 345,000 640,870
Imperial Chemical Industries PLC 74,600 788,079
J. Sainsbury 107,100 605,063
Marconi PLC * 51,900 915,468
Marks & Spencer PLC 101,200 483,866
National Power 129,800 748,508
Peninsular & Oriental Steam
Navigation Company 77,400 1,283,999
Powergen 69,900 502,447
Rolls Royce 116,500 404,592
Safeway 150,000 520,329
Somerfield PLC 243,000 354,247
Stagecoach Holdings 400,000 1,027,331
Storehouse 280,800 210,913
The Shell Transport and
Trading Company PLC 106,800 887,585
Williams PLC 299,400 1,363,811
-----------
13,847,484
TOTAL COMMON STOCKS
(Cost: $88,734,585) $93,248,487
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
105
<PAGE> 148
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
PREFERRED STOCK - 1.61%
GERMANY - 1.61%
Munchener
Ruckversicherungs-
Gesellschaft AG 1,400 $ 355,111
Volkswagen AG 39,700 1,271,739
----------
1,626,850
TOTAL PREFERRED STOCK
(Cost: $1,807,946) $1,626,850
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
<S> <C>
REPURCHASE AGREEMENTS - 6.10%
$6,163,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 2.50%, to be
repurchased at $6,164,284 on
01/03/2000, collateralized by
$5,810,000 U.S. Treasury Bonds,
8.75% due 11/15/2008 (valued at
$6,289,325, including interest) $ 6,163,000
------------
TOTAL INVESTMENTS (INTERNATIONAL VALUE
TRUST) (Cost: $96,705,531) $101,038,337
============
</TABLE>
The Trust had the following five top industry concentrations at December 31,
1999 ( as a percentage of total value of investments):
<TABLE>
<S> <C>
Telephone 9.21%
Banking 6.98%
Electrical Equipment 5.43%
Telecommunications Services 5.40%
Chemicals 4.45%
</TABLE>
MID CAP BLEND TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 80.98%
AEROSPACE - 0.48%
GenCorp, Incorporated 411,100 $ 4,059,613
General Dynamics
Corporation 100,000 5,275,000
-----------
9,334,613
AIR TRAVEL - 0.72%
Atlas Air, Incorporated * 78,300 2,148,356
Skywest, Incorporated 424,400 11,883,200
-----------
14,031,556
ALUMINUM - 0.09%
Alcoa, Incorporated 20,600 $ 1,709,800
-----------
APPAREL & TEXTILES - 0.42%
Albany International
Corporation, Class A * 259,973 4,029,581
Liz Claiborne, Incorporated 55,500 2,088,188
Polo Ralph Lauren
Corporation * 119,600 2,040,675
-----------
8,158,444
AUTO PARTS - 0.11%
Eaton Corporation 28,300 2,055,288
-----------
AUTO SERVICES - 0.42%
AutoNation, Incorporated * 897,100 8,298,175
-----------
BANKING - 0.20%
AmSouth Bancorporation 60,000 1,158,750
Comerica, Incorporated 30,000 1,400,625
Hudson United Bancorp 40,000 1,022,500
U.S. Bancorp 10,000 238,125
-----------
3,820,000
BROADCASTING - 1.55%
American Telephone & Telegraph
Corporation-Liberty Media
Group, Class A * 64,272 3,647,436
Cablevision Systems
Corporation, Class A * 128,000 9,664,000
EchoStar Communications
Corporation * 173,500 16,916,250
-----------
30,227,686
BUILDING MATERIALS & CONSTRUCTION - 1.44%
Fluor Corporation 323,000 14,817,625
Harsco Corporation 420,700 13,357,225
-----------
28,174,850
BUSINESS SERVICES - 7.94%
At Home Corporation, Series A* 397,644 17,048,986
Banta Corporation 215,400 4,859,962
Central Parking Corporation 51,700 988,763
CMG Information Services,
Incorporated * 90,800 25,140,250
Deluxe Corporation 857,400 23,524,912
Gartner Group, Incorporated,
Class A * 20,800 317,200
Gartner Group, Incorporated,
Class B * 95,600 1,320,475
GTECH Holdings Corporation * 98,700 2,171,400
H & R Block, Incorporated 110,100 4,816,875
Healtheon/ WebMD
Corporation * 296,800 11,130,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
106
<PAGE> 149
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BUSINESS SERVICES - CONTINUED
Interpublic Group
Companies, Incorporated 192,300 $ 11,093,306
Iron Mountain,
Incorporated * 11,500 452,094
Legato Systems,
Incorporated * 67,000 4,610,438
Lycos, Incorporated * 252,000 20,049,750
NCR Corporation * 75,800 2,870,925
Ogden Corporation * 354,800 4,235,425
R.R. Donnelley & Sons
Company 672,800 16,693,850
Stone & Webster,
Incorporated * 7,300 122,731
TETRA Technologies,
Incorporated * 235,300 3,617,738
------------
155,065,080
CHEMICALS - 4.47%
Arch Chemicals, Incorporated 118,450 2,480,047
Cabot Corporation 537,200 10,945,450
CK Witco Corporation 420,403 5,622,890
Engelhard Corporation 236,100 4,456,387
Ferro Corporation 627,950 13,814,900
Geon Company 217,800 7,078,500
Georgia Gulf Corporation 22,700 690,931
Great Lakes Chemical
Corporation 50,700 1,936,106
Hercules, Incorporated 562,900 15,690,837
IMC Global, Incorporated 27,700 453,588
M.A. Hanna Company 132,000 1,443,750
Millennium Chemicals,
Incorporated 21,800 430,550
Olin Corporation 148,600 2,944,138
Omnova Solutions,
Incorporated 436,300 3,381,325
Solutia, Incorporated 106,700 1,647,181
Sterling Commerce,
Incorporated * 215,500 7,340,469
W. R. Grace & Company * 495,400 6,873,675
------------
87,230,724
COMPUTERS & BUSINESS EQUIPMENT - 2.83%
Celestica, Incorporated * 212,200 11,778,620
Citrix Systems, Incorporated * 96,900 11,918,700
Computer Associates
International, Incorporated 2,900 202,819
DST Systems, Incorporated * 24,800 1,892,550
Exodus Communications,
Incorporated * 37,100 3,294,944
Gateway, Incorporated * 77,100 5,556,018
Quantum Corporation * 769,000 $11,631,125
Redback Networks,
Incorporated * 18,100 3,212,750
Saleslogix Corporation * 26,900 1,104,581
Unisys Corporation * 148,100 4,729,944
-----------
55,322,051
CONSTRUCTION MATERIALS - 0.00%
Huttig Building Products,
Incorporated * 13,255 65,447
-----------
CONTAINERS & GLASS - 0.38%
Bemis, Incorporated 212,900 7,424,888
-----------
CRUDE PETROLEUM & NATURAL GAS - 1.20%
Cabot Oil & Gas Corporation,
Class A 44,700 717,994
Occidental Petroleum
Corporation 496,900 10,745,462
Pioneer Natural Resources
Company * 157,000 1,403,188
Santa Fe Snyder Corporation * 1,156,765 9,254,120
Sunoco, Incorporated 53,400 1,254,900
-----------
23,375,664
DOMESTIC OIL - 1.01%
Amerada Hess Corporation 242,300 13,750,525
Forest Oil Corporation * 110,000 1,450,625
USX-Marathon Group 180,000 4,443,750
-----------
19,644,900
DRUGS & HEALTH CARE - 6.58%
Biogen, Incorporated * 124,100 10,486,450
Biomet, Incorporated 138,200 5,528,000
Cytyc Corporation * 194,300 11,864,444
Dentsply International,
Incorporated 349,900 8,266,387
Forest Labs, Incorporated * 111,400 6,844,138
Gilead Sciences,
Incorporated * 106,200 5,748,075
HEALTHSOUTH Corporation * 86,800 466,550
Human Genome Sciences,
Incorporated * 117,400 17,918,175
IDEC Pharmaceuticals
Corporation * 1,800 176,850
Immunex Corporation * 169,700 18,582,150
IMS Health, Incorporated 366,500 9,964,219
Medimmune, Incorporated * 74,900 12,424,037
Millennium Pharmaceuticals * 32,500 3,965,000
PE Corp-PE Biosystems Group
56,700 6,821,719
</TABLE>
The accompanying notes are an integral part of the financial statements.
107
<PAGE> 150
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
DRUGS & HEALTH CARE - CONTINUED
Quest Diagnostics,
Incorporated * 310,500 $ 9,489,656
------------
128,545,850
ELECTRICAL EQUIPMENT - 0.98%
American Power Conversion
Corporation * 75,000 1,978,125
AMETEK, Incorporated 432,970 8,253,491
Emulex Corporation * 36,700 4,128,750
Millipore Corporation 40,500 1,564,312
Sensormatic Electrics
Corporation * 181,900 3,171,881
------------
19,096,559
ELECTRIC UTILITIES - 0.57%
Calpine Corporation * 128,200 8,204,800
CMS Energy Corporation 70,000 2,183,125
PG&E Corporation 39,600 811,800
------------
11,199,725
ELECTRONICS - 7.79%
Adaptec, Incorporated * 290,400 14,483,700
Altera Corporation * 332,700 16,489,444
Analog Devices, Incorporated * 101,900 9,476,700
Electronics For Imaging,
Incorporated * 755,100 43,890,187
Flextronics International * 61,900 2,847,400
General Instrument
Corporation * 67,300 5,720,500
Jabil Circuit, Incorporated * 279,300 20,388,900
JDS Uniphase Corporation * 133,400 21,519,087
Lexmark International Group,
Incorporated, Class A * 29,000 2,624,500
Linear Technology
Corporation 59,500 4,257,969
PerkinElmer, Incorporated 82,600 3,443,388
Vitesse Semiconductor
Corporation * 132,300 6,937,481
------------
152,079,256
FINANCIAL SERVICES - 2.93%
Charles Schwab Corporation 637,700 24,471,737
Compass Bancshares,
Incorporated 30,000 669,375
Knight Trimark Group,
Class A * 259,300 11,927,800
Morgan Stanley Dean Witter &
Company 139,500 19,913,625
Regions Financial
Corporation 10,000 251,250
------------
57,233,787
FOOD & BEVERAGES - 1.11%
Dean Foods Company 90,000 $ 3,577,500
Dole Food, Incorporated 214,400 3,484,000
Earthgrains Company 122,200 1,970,475
Fleming Companies,
Incorporated 124,000 1,271,000
Interstate Bakeries
Corporation 201,200 3,646,750
Keebler Foods Company * 51,200 1,440,000
Nabisco Group Holding
Corporation 100,000 1,062,500
Nabisco Holdings
Corporation, Class A 166,100 5,252,912
-----------
21,705,137
GAS & PIPELINE UTILITIES - 0.17%
Ocean Energy, Incorporated * 430,700 3,337,925
-----------
GOLD - 0.18%
Newmont Mining Corporation 140,000 3,430,000
-----------
HOTELS & RESTAURANTS - 0.13%
Starwood Hotels & Resorts,
Class B 111,700 2,624,950
-----------
HOUSEHOLD PRODUCTS - 1.21%
Black & Decker Corporation 73,600 3,845,600
Martha Stewart Living,
Incorporated, Class A * 189,900 4,557,600
Snap-On, Incorporated 536,100 14,240,156
Tupperware Corporation 59,000 999,313
-----------
23,642,669
INDUSTRIAL MACHINERY - 2.06%
American Standard Companies,
Incorporated * 321,000 14,725,875
Crane Company 119,500 2,375,062
Ingersoll Rand Company 25,400 1,398,588
Kaydon Corporation 200,900 5,386,631
Kennametal, Incorporated 41,700 1,402,163
Pentair, Incorporated 110,000 4,235,000
UNOVA, Incorporated * 821,500 10,679,500
-----------
40,202,819
INSURANCE - 0.74%
ACE, Ltd. 220,400 3,677,925
Ambac Financial Group,
Incorporated 112,000 5,845,000
Commerce Group,
Incorporated 7,400 193,325
PartnerRe, Ltd. 37,800 1,226,138
UnumProvident Corporation 110,000 3,526,875
-----------
14,469,263
</TABLE>
The accompanying notes are an integral part of the financial statements.
108
<PAGE> 151
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
INTERNATIONAL OIL - 0.61%
Halliburton Company 297,200 $11,962,300
-----------
LEISURE TIME - 0.31%
Brunswick Corporation 56,100 1,248,225
Cinar Films, Incorporated * 42,200 1,008,590
Cinar Films, Incorporated,
Class B * 79,900 1,957,550
Harrahs Entertainment,
Incorporated * 70,000 1,850,625
-----------
6,064,990
LIQUOR - 0.14%
Adolph Coors Company,
Class B 53,000 2,782,500
-----------
METAL & METAL PRODUCTS - 0.14%
Inco, Ltd. * 115,000 2,702,500
-----------
MINING - 0.68%
Phelps Dodge Corporation 40,000 2,685,000
Stillwater Mining Company * 331,000 10,550,625
-----------
13,235,625
OFFICE FURNISHINGS & SUPPLIES - 0.40%
Miller Herman, Incorporated 342,500 7,877,500
-----------
PAPER - 1.04%
Bowater, Incorporated 122,900 6,675,006
Fort James Corporation 235,800 6,455,025
Smurfit Container
Corporation * 294,300 7,210,350
-----------
20,340,381
PETROLEUM SERVICES - 1.22%
Baker Hughes, Incorporated 207,400 4,368,362
Helmerich & Payne,
Incorporated 256,000 5,584,000
Noble Drilling Corporation * 178,100 5,832,775
Smith International,
Incorporated 68,500 3,403,594
Tesoro Petroleum
Corporation * 77,300 893,781
Tosco Corporation 137,300 3,732,844
-----------
23,815,356
PHOTOGRAPHY - 0.14%
Polaroid Corporation 146,300 2,752,269
-----------
POLLUTION CONTROL - 0.75%
Republic Services,
Incorporated, Class A * 1,017,400 14,625,125
-----------
PUBLISHING - 0.28%
John H. Harland Company 295,100 $ 5,404,019
-----------
RAILROADS & EQUIPMENT - 0.56%
Burlington Northern Santa Fe
Corporation 198,500 4,813,625
Canadian National Railway
Company 99,280 2,612,305
CSX Corporation 112,900 3,542,238
-----------
10,968,168
REAL ESTATE - 1.06%
Apartment Investment &
Management Company,
Class A 57,900 2,305,144
Arden Realty, Incorporated 82,400 1,653,150
Avalon Bay Communities,
Incorporated 74,200 2,545,987
BRE Properties, Incorporated 77,500 1,758,281
Duke Weeks Realty
Investments, Incorporated 80,200 1,563,900
Equity Office Properties Trust 50,000 1,231,250
First Industrial Realty
Trust, Incorporated 31,200 856,050
Highwoods Properties,
Incorporated 58,000 1,348,500
Kimco Realty Corporation 53,400 1,808,925
Public Storage, Incorporated 74,200 1,683,413
Simon Property Group,
Incorporated 78,900 1,809,769
Spieker Properties,
Incorporated 34,700 1,264,381
TrizecHahn Corporation 52,400 884,250
-----------
20,713,000
RETAIL TRADE - 6.42%
Abercrombie & Fitch
Company, Class A * 374,730 10,000,607
Best Buy Company,
Incorporated * 583,800 29,299,462
BJ's Wholesale Club,
Incorporated * 498,700 18,202,550
Consolidated Stores
Corporation * 1,005,300 16,336,125
Federated Department
Stores, Incorporated * 610,000 30,843,125
Heilig-Meyers Company 341,500 939,125
Nordstrom, Incorporated 80,000 2,095,000
Payless ShoeSource,
Incorporated * 108,700 5,108,900
Pep Boys-Manny, Moe &
Jack 173,400 1,582,275
The Limited, Incorporated 249,900 10,823,794
</TABLE>
The accompanying notes are an integral part of the financial statements.
109
<PAGE> 152
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RETAIL TRADE - CONTINUED
Too, Incorporated * 9,429 $ 162,650
--------------
125,393,613
SANITARY SERVICES - 0.52%
Safety-Kleen Corporation * 82,300 931,019
Waste Management,
Incorporated 538,705 9,258,992
--------------
10,190,011
SHIPBUILDING - 0.16%
Newport News Shipbuilding,
Incorporated 114,700 3,154,250
--------------
SOFTWARE - 6.08%
Axent Technologies,
Incorporated * 43,800 919,800
Compuware Corporation * 677,000 25,218,250
Inktomi Corporation * 75,400 6,691,750
Intuit, Incorporated * 426,900 25,587,319
ISS Group, Incorporated * 42,300 3,008,587
Rhythms Net Connections,
Incorporated * 128,100 3,971,100
Siebel Systems, Incorporated * 75,100 6,308,400
USA Networks, Incorporated * 184,000 10,166,000
Veritas Software Corporation * 258,000 36,926,250
--------------
118,797,456
STEEL - 1.15%
Nucor Corporation 334,400 18,329,300
Ryerson Tull, Incorporated 132,068 2,567,072
Steel Dynamics, Incorporated * 17,600 280,500
USX-United States Steel
Group 40,000 1,320,000
--------------
22,496,872
TELECOMMUNICATIONS SERVICES - 6.18%
ADC Telecommunications,
Incorporated * 108,400 7,865,775
American Mobile Satellite
Corporation * 23,700 499,181
Comverse Technology,
Incorporated * 70,372 10,186,347
Global Telesystems Group,
Incorporated * 455,100 15,757,837
InterDigital Communication
Corporation * 35,000 2,625,000
L.M. Ericsson
Telefonaktiebolaget 600,800 39,465,050
McLeodUSA, Incorporated * 248,400 14,624,550
Metromedia Fiber Network,
Incorporated, Class A * 296,100 14,194,294
Nokia Corporaton, ADR 61,400 11,666,000
QUALCOMM, Incorporated * 14,400 $ 2,536,200
Time Warner Telecom,
Incorporated, Class A * 24,000 1,198,500
--------------
120,618,734
TELEPHONE - 3.52%
BellSouth Corporation 4,700 220,019
CenturyTel, Incorporated 202,600 9,598,175
Nextel Communications,
Incorporated, Class A * 243,800 25,141,875
Nextlink Communications,
Incorporated * 34,400 2,857,350
Winstar Communications,
Incorporated * 410,900 30,920,225
--------------
68,737,644
TIRES & RUBBER - 0.08%
Cooper Tire & Rubber
Company 100,000 1,556,250
--------------
TOBACCO - 0.09%
R.J. Reynolds Tobacco
Holdings, Incorporated 100,600 1,773,075
--------------
TRUCKING & FREIGHT - 1.74%
Canadian National Railway
Company 48,520 1,284,007
CNF Transportation,
Incorporated 574,200 19,809,900
Navistar International
Corporation * 74,300 3,519,963
Pittston Brinks Group 118,100 2,598,200
Ryder Systems, Incorporated 276,300 6,752,081
--------------
33,964,151
TOTAL COMMON STOCKS
(Cost: $1,411,071,139) $1,581,432,895
--------------
PREFERRED STOCK - 0.18%
CONTAINERS & GLASS - 0.14%
Owens-Illinois, 88,800 2,775,000
Incorporated
--------------
PUBLISHING - 0.04%
Readers Digest 30,000 813,750
--------------
TOTAL PREFERRED STOCK
(Cost: $4,438,603) $ 3,588,750
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
110
<PAGE> 153
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
<S> <C>
SHORT TERM INVESTMENTS - 14.25%
$277,560,148 Navigator Securities Lending
Trust, 5.86% $ 277,560,148
750,000 United States Treasury Bills
5.19% due 01/13/2000 748,704
--------------
$ 278,308,852
REPURCHASE AGREEMENTS - 4.59%
$89,676,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 5.00%, to be
repurchased at $89,713,365 on
01/03/2000, collateralized by
$41,035,000 U.S. Treasury Bonds,
6.375% due 08/15/2027 (valued at
$40,470,769, including interest)
and $49,940,000 U.S. Treasury
Notes, 6.25% due 08/31/2002
(valued at $51,001,225, including
interest) $ 89,676,000
--------------
TOTAL INVESTMENTS (MID CAP BLEND TRUST)
(Cost: $1,783,494,592) $1,953,006,497
==============
</TABLE>
SMALL COMPANY VALUE TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 97.29%
AEROSPACE - 0.05%
Curtiss Wright Corporation 1,200 $ 44,250
----------
AIR TRAVEL - 0.83%
Alaska Air Group * 5,100 179,137
America West Holding
Corporation, Class B * 24,500 508,375
Hawaiian Airlines,
Incorporated * 32,700 69,488
----------
757,000
APPAREL & TEXTILES - 1.27%
Angelica Corporation 10,500 102,375
Decorator Industries,
Incorporated 400 2,125
Dixie Group, Incorporated,
Class A * 3,000 22,125
Perry Ellis International,
Incorporated * 2,700 31,388
Hampshire Group, Ltd. * 200 $ 1,775
Kellwood Company 19,000 369,312
Leslie Fay, Incorporated * 4,200 25,725
McNaughton Apparel Group,
Incorporated * 5,500 39,875
Premiumwear, Incorporated * 2,400 13,200
Russell Corporation 11,900 199,325
Springs Industries,
Incorporated 8,300 331,481
Timberland Company,
Class A * 200 10,575
----------
1,149,281
AUTO PARTS - 0.91%
American Axle & Manufacturing
Holdings, Incorporated * 7,900 95,787
Arvin Industries, 17,400 493,725
Incorporated
Detroit Diesel Corporation 9,400 180,362
Standard Motor Products,
Incorporated, Class A 3,100 49,988
TFC Enterprises,
Incorporated * 2,400 9,000
----------
828,862
AUTO SERVICES - 0.48%
Dollar Thrifty Automotive
Group * 18,400 440,450
----------
AUTOMOBILES - 0.93%
Dura Automotive Systems,
Incorporated * 5,400 94,163
Monaco Coach Corporation * 13,700 350,206
Spartan Motors, Incorporated * 1,000 4,375
Wabash National Corporation 16,600 249,000
Winnebago Industries,
Incorporated 7,300 146,456
----------
844,200
BANKING - 2.96%
Ambanc Holding Company,
Incorporated 3,600 53,100
Bancwest Corporation 20,000 390,000
Berkshire Bancorp,
Incorporated 2,500 87,500
BNCCORP, Incorporated * 3,100 18,213
Borel Bank & Trust Company 1,100 19,937
Central Bancorp,
Incorporated 1,900 31,350
Chittenden Corporation 400 11,850
Citizens Banking Corporation 5,300 118,587
Commercial Bank of New York
4,300 47,837
</TABLE>
The accompanying notes are an integral part of the financial statements.
111
<PAGE> 154
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BANKING - CONTINUED
Commonwealth Bancorp,
Incorporated 100 $ 1,663
Corus Bankshares,
Incorporated 11,200 268,800
Elmira Savings Bank 600 13,050
FFLC Bancorp, Incorporated 100 1,525
First Citizens Bancshares,
Incorporated 7,900 551,025
First Keystone Financial,
Incorporated 400 3,900
Franklin Bank NA 1,100 10,519
FSF Financial Corporation 2,000 24,500
Horizon Financial Corporation 2,200 20,900
Iroquois Bancorp,
Incorporated 400 5,900
Jacksonville Bancorp,
Incorporated 1,400 19,075
New Century Financial
Corporation * 7,200 113,400
Northrim Bank 1,700 16,894
Permanent Bancorp,
Incorporated 100 1,738
Princeton National Bancorp,
Incorporated 2,700 30,037
Professional Bancorp 1,600 11,600
Quaker City Bancorp,
Incorporated * 5,700 92,625
Republic Bancorp,
Incorporated 3,300 40,064
Silicon Valley Bancshares * 3,500 173,250
Southern Missouri Bancorp,
Incorporated 700 8,969
Staten Island Bancorp,
Incorporated 2,400 43,200
Sterling Financial Corporation * 1,000 11,500
Texas Regional Bancshares,
Incorporated, Class A 11,200 324,800
The Trust Company Of
New Jersey 4,700 107,512
Wainwright Bank & Trust
Company 500 3,313
Wells Financial Corporation 1,100 12,719
----------
2,690,852
BROADCASTING - 0.01%
Andersen Group,
Incorporated * 1,300 6,419
----------
BUILDING MATERIALS & CONSTRUCTION - 1.10%
Abrams Industries,
Incorporated 3,200 13,600
Continental Materials
Corporation * 5,400 124,200
Elcor Chemical Corporation 7,400 222,925
Hughes Supply, Incorporated 14,200 306,187
Meadow Valley Corporation * 3,400 12,325
Morrison Knudsen
Corporation * 35,200 275,000
Perini Corporation * 10,600 41,075
----------
995,312
BUSINESS SERVICES - 9.89%
Actuate Corporation * 18,500 793,187
Amerco * 6,500 162,500
American Business Products,
Incorporated 3,200 37,400
Banta Corporation 20,300 458,019
Barra, Incorporated * 6,600 209,550
Berlitz International,
Incorporated * 1,200 20,625
Bindview Development
Corporation * 800 39,750
Bowne & Company,
Incorporated 12,200 164,700
Caredata Common,
Incorporated * 2,000 13,250
Cass Commercial
Corporation 200 4,050
Cellular Technical Services,
Incorporated * 2,000 15,500
Clarify, Incorporated * 4,200 529,200
Data Systems & Software,
Incorporated * 3,200 10,800
Dental/Medical Diagnostic
Systems, Incorporated * 4,600 12,938
Diamond Technology Partner,
Incorporated, Class A * 9,100 782,031
Ennis Business Forms,
Incorporated 3,600 27,900
Exponent, Incorporated * 5,600 37,100
Ezcorp, Incorporated, Class A 12,900 52,406
Grey Advertising,
Incorporated 700 280,000
Gundle/SLT Environmental,
Incorporated * 300 1,050
GZA GeoEnvironmental * 3,900 17,550
Heidrick & Struggles
International, Incorporated * 10,200 430,950
Hello Direct, Incorporated * 800 11,900
Innodata Corporation * 4,200 33,338
Interlinq Software
Corporation * 2,300 8,625
IT Group, Incorporated * 15,000 137,812
Jacobs Engineering Group,
Incorporated * 4,000 130,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
112
<PAGE> 155
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BUSINESS SERVICES - CONTINUED
Judge Group, Incorporated * 12,900 $ 18,544
Kelly Services, Incorporated,
Class A 13,900 349,237
Korn/Ferry International * 24,300 883,912
Lightbridge, Incorporated * 6,500 180,375
Marlton Technologies,
Incorporated * 2,300 6,325
Maxco, Incorporated * 1,600 15,800
Michael Baker Corporation * 7,214 47,793
Micromuse, Incorporated * 6,500 1,105,000
National Techical Systems,
Incorporated 7,900 30,613
NBC Internet, Incorporated * 2,400 185,400
Nextera Enterprises,
Incorporated * 400 5,150
Opinion Research
Corporation * 6,200 55,800
Paxar Corporation * 300 2,531
Porta Systems Corporation * 9,700 7,275
Promedco Management
Company * 9,000 26,438
REFAC * 5,000 19,375
Salient 3 Communications,
Incorporated, Class A * 300 2,100
Simone Central Holdings,
Incorporated * 6,200 11,625
Strategic Diagnostics,
Incorporated * 2,000 13,125
Sunrise International,
Incorporated * 9,600 50,100
Sypris Solutions,
Incorporated * 4,200 37,800
Systems & Computer Technology
Corporation * 300 4,875
Team, Incorporated * 4,300 8,331
Trio-Tech International * 2,600 9,588
True North Communications 27,700 1,237,844
URS Corporation * 4,600 99,762
US Liquids, Incorporated * 11,000 92,125
Venture Catalyst,
Incorporated * 6,500 32,500
Westaff, Incorporated * 2,200 18,150
----------
8,979,624
CHEMICALS - 2.94%
Aceto Corporation 8,300 91,300
American Vanguard
Corporation 3,000 18,375
Cambrex Corporation 28,100 967,694
Chemfirst, Incorporated 11,400 249,375
Dexter Corporation 17,400 691,650
Farrel Corporation 4,200 7,613
Geon Company 200 6,500
H.B. Fuller Company 10,200 570,562
Meteor Industries,
Incorporated * 1,000 2,875
Quaker Chemical 3,600 51,300
Repligen Corporation * 4,900 15,312
----------
2,672,556
COMPUTERS & BUSINESS EQUIPMENT - 3.71%
4Front Software
International, Incorporated * 7,000 93,625
Advanced Digital Information * 2,000 97,250
Autologic Information
International, Incorporated * 4,700 11,750
Avant Corporation * 27,000 405,000
Casino Data Systems * 14,800 59,200
Cybex Computer Products
Corporation * 400 16,200
Dataram Corporation * 10,200 228,862
Gerber Scientific,
Incorporated 29,000 636,187
Interphase Corporation * 1,900 40,138
Mercury Computer Systems,
Incorporated * 13,800 483,000
Microtouch Systems,
Incorporated * 1,000 12,625
National Computer Systems,
Incorporated 1,100 41,388
Netopia, Incorporated * 4,800 260,700
New Horizons Worldwide,
Incorporated * 5,600 66,500
Radiant Systems,
Incorporated * 4,800 192,900
Standard Microsystems
Corporation * 10,600 114,612
Sybase, Incorporated * 34,200 581,400
Talx Corporation * 1,100 14,575
Workgroup Technology
Corporation * 6,800 12,750
----------
3,368,662
CONSTRUCTION MATERIALS - 2.26%
Ameron International
Corporation 5,100 201,769
Centex Construction
Products, Incorporated 6,900 269,100
Dayton Superior Corporation,
Class A * 4,500 73,125
Florida Rock Industries,
Incorporated 3,100 106,756
Genesis Worldwide,
Incorporated * 3,100 9,881
Giant Group, Ltd. * 1,800 6,300
Griffon Corporation * 3,900 30,469
</TABLE>
The accompanying notes are an integral part of the financial statements.
113
<PAGE> 156
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
CONSTRUCTION MATERIALS - CONTINUED
Harsco Corporation 100 $ 3,175
Noland Company 700 12,513
Patrick Industries,
Incorporated 5,300 49,025
QEP, Incorporated * 2,500 19,219
TJ International, Incorporated * 8,300 348,600
Trinity Industries,
Incorporated 32,600 927,062
----------
2,056,994
CONSTRUCTION & MINING EQUIPMENT - 0.67%
Butler Manufacturing
Company 3,300 73,631
CDI Corporation * 16,500 398,063
Conrad Industries,
Incorporated * 500 1,625
Gencor Industries,
Incorporated 11,500 72,594
Kaman Corporation, Class A 5,200 66,950
----------
612,863
CONTAINERS & GLASS - 0.33%
Carmel Container Systems, Ltd. * 1,000 8,500
West Pharmaceutical Services,
Incorporated 9,300 287,719
----------
296,219
COSMETICS & TOILETRIES - 0.53%
Allou Health & Beauty Care,
Incorporated * 2,100 13,913
Block Drug, Incorporated,
Class A 15,090 467,774
----------
481,687
CRUDE PETROLEUM & NATURAL GAS - 0.34%
Cabot Oil & Gas Corporation,
Class A 19,000 305,188
----------
DOMESTIC OIL - 0.77%
Castle Energy Corporation 1,900 48,213
Equity Oil Company * 11,600 13,050
Forest Oil Corporation * 7,500 98,906
Greka Energy Corporation * 32 296
Huntway Refining Company * 5,600 6,650
Key Production, Incorporated * 6,200 45,725
Pennzoil-Quaker State
Company 48,200 491,037
----------
703,877
DRUGS & HEALTH CARE - 5.80%
Abgenix, Incorporated * 4,400 583,000
Acuson Corporation * 3,800 47,738
Air Methods Corporation * 5,800 $ 18,125
ALPHARMA, Incorporated 11,700 359,775
Candela Corporation * 4,400 81,950
Carter Wallace, Incorporated 1,600 28,700
Chirex, Incorporated * 10,600 155,025
Coventry Helath Care,
Incorporated * 13,200 89,100
Datascope Corporation 8,800 352,000
Diagnostic Health Services,
Incorporated * 9,200 1,334
Diagnostic Products
Corporation 9,100 222,950
Drug Emporium, Incorporated * 9,200 40,825
Dura Pharmaceuticals,
Incorporated * 14,000 195,125
Ergo Science Corporation * 300 356
GP Strategies Corporation * 5,100 31,238
Hi Tech Pharmacal Company,
Incorporated * 4,100 18,706
Health Risk Management,
Incorporated * 1,300 7,963
Hooper Holmes, Incorporated 25,800 664,350
Immucor Corporation * 5,700 75,169
Innovative Clinical Solutions * 13,100 3,341
International Specialty
Products * 13,400 123,112
King Pharmaceuticals,
Incorporated * 3,300 185,006
Lifepoint Hospitals,
Incorporated * 1,300 15,356
Medical Action Industries, 5,800 20,300
Incorporated *
Medicis Pharmaceutical
Corporation, Class A * 5,400 229,837
Mesa Labs, Incorporated * 700 2,669
Mine Safety Appliances
Company 2,600 166,400
National Home Health Care
Corporation * 5,200 19,825
Nutraceutical International
Corporation * 1,000 3,500
Option Care, Incorporated * 3,100 9,494
Perrigo Company * 46,900 375,200
Premier Research Worldwide,
Ltd. * 8,700 85,369
Quest Diagnostics,
Incorporated * 3,700 113,081
Shire Pharmaceuticals Group
Place * 20,644 601,256
Sicor, Incorporated * 13,200 102,300
Spacelabs, Incorporated * 11,100 206,044
Synbiotics Corporation * 5,000 12,031
</TABLE>
The accompanying notes are an integral part of the financial statements.
114
<PAGE> 157
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
DRUGS & HEALTHCARE - CONTINUED
Syncor International
Corporation * 400 $ 11,650
Uniholding Corporation * 4,800 9,600
----------
5,268,800
ELECTRICAL EQUIPMENT - 4.03%
A.O. Todd Corporation,
Class A 4,600 140,300
Acme Electric Corporation * 3,600 20,700
All American Semiconductor,
Incorporated * 100 297
Audiovox Corporation,
Class A * 15,000 455,625
Ault, Incorporated * 400 3,600
Emulex Corporation * 15,200 1,710,000
General Semiconductor,
Incorporated * 22,000 312,125
Genlyte Group, Incorporated * 800 17,100
Harman International
Industries, Incorporated 2,200 123,475
Intergrated Electrical
Services * 17,400 175,087
Kewaunee Scientific
Corporation 1,800 17,775
Loronix Information Systems,
Incorporated * 3,800 75,050
Merrimac Industries,
Incorporated * 1,500 9,938
Micros Systems, Incorporated * 300 22,200
Pacific Aerospace,
Incorporated * 15,900 19,875
Power Integrations * 4,900 234,894
Power One, Incorporated * 3,400 155,762
SL Industry, Incorporated 5,000 58,125
Woodhead Industries 9,000 104,625
----------
3,656,553
ELECTRIC UTILITIES - 0.61%
Public Service Company 25,900 420,875
TNP Enterprises,
Incorporated 3,200 132,000
----------
552,875
ELECTRONICS - 12.40%
Aerovox, Incorporated * 2,000 6,250
American Technical
Ceramics * 1,000 16,000
Amplicon, Incorporated 800 8,700
Anadigics, Incorporated * 10,900 514,344
Bairnco Corporation 4,200 25,200
Baldwin Technology,
Incorporated * 13,000 27,625
Bell Microproducts,
Incorporated * 7,700 $ 84,700
Cement Corporation * 100 1,075
CMP Group, Incorporated 55,200 1,521,450
Cobra Electronics
Corporation * 2,400 11,850
Cree Research, Incorporated * 1,100 93,913
CTS Corporation 15,700 1,183,387
Cypress Semiconductor
Corporation * 28,000 906,500
Haemonetics Corporation * 4,500 107,156
Integrated Device
Technology * 1,200 34,800
International Rectifier
Corporation * 36,500 949,000
Katy Industries, 5,800 50,388
Incorporated
Key Tronic Corporation * 8,700 32,625
Kopin Corporation * 1,800 75,600
Kulicke & Soffa Industries,
Incorporated * 14,700 625,669
Lattice Semiconductor
Corporation * 19,500 918,937
LTX Corporation * 5,200 116,350
New Brunswick Scientific,
Incorporated * 2,400 12,300
Pittway Corporation, Class A 3,000 134,438
Sequa Corporation, Class A * 4,000 215,750
Signal Technology
Corporation * 500 3,625
Siliconix, Incorporated * 1,000 131,500
TekTronix, Incorporated 4,500 174,937
Triquint Semiconductor,
Incorporated * 10,600 1,179,250
United Industrial 15,600 144,300
Corporation
Varian Medical Systems,
Incorporated 20,600 614,137
Varian Semiconductor
Equipment, Incorporated * 21,600 734,400
Varian, Incorporated * 24,200 544,500
Video Display Corporation * 4,600 19,550
Vishay Intertechnology,
Incorporated * 750 23,719
Zoran Corporation * 300 16,725
-----------
11,260,650
FINANCIAL SERVICES - 4.94%
Affiliated Managers Group,
Incorporated 23,500 950,281
Americredit Corporation * 5,700 105,450
Arthur J. Gallagher &
Company 1,400 90,650
</TABLE>
The accompanying notes are an integral part of the financial statements.
115
<PAGE> 158
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
FINANCIAL SERVICES - CONTINUED
BOK Financial Corporation * 9,059 $ 183,020
Building One Services
Corporation * 1,100 10,381
Capital Associates,
Incorporated * 4,800 15,000
Capital Corporation Of The West * 3,200 31,200
Carver Bancorp, Incorporated* 4,800 53,400
Circle International Group,
Incorporated 1,700 37,825
Community Financial
Corporation 1,600 15,000
Dain Rauscher Corporation 9,400 437,100
Federal Agricultural Mortgage
Corporation, Class C * 1,900 38,356
First Bancshares,
Incorporated 1,500 14,250
First Charter Corporation 1,600 23,800
Freedom Securities
Corporation 15,100 169,875
Hawthorne Financial
Corporation * 6,300 78,750
Hoenig Group, Incorporated * 6,000 55,500
HPSC, Incorporated * 11,900 110,075
International Bancshares
Corporation 500 22,125
ITLA Capital Corporation * 1,700 21,356
J.W. Genesis Financial
Corporation * 1,700 50,363
JSB Financial, Incorporated 13,800 715,875
KBK Capital Corporation * 2,700 9,113
Maxcorp Financial Group,
Incorporated * 5,000 13,438
Mego Financial Corporation * 1,966 8,110
North Central Bancshares,
Incorporated 2,500 37,500
Seacoast Financial Services
Corporation 11,493 117,085
Southwest Securities Group,
Incorporated 4,200 114,975
Student Loan Corporation 5,500 274,312
UMB Financial Corporation 18,150 685,162
----------
4,489,327
FOOD & BEVERAGES - 2.26%
Corn Products International,
Incorporated 25,400 831,850
Farmer Brothers Company 1,300 206,700
Golden State Vintners,
Incorporated, Class B * 6,700 35,175
International Multifoods
Corporation 17,500 231,875
M & F Worldwide Corporation* 3,900 19,744
John B SanFilippo & Son,
Incorporated * 1,200 4,800
Ralcorp Holdings,
Incorporated * 18,000 $ 358,875
Scope Industries 1,800 81,450
Seabord Corporation 310 60,217
Triarc Companies,
Incorporated, Class A * 12,200 224,175
----------
2,054,861
FOREST PRODUCTS - 0.13%
Baltek Corporation * 4,400 33,550
Pope & Talbot, Incorporated 2,400 38,400
Universal Fast Products,
Incorporated 3,000 44,250
----------
116,200
GAS & PIPELINE UTILITIES - 2.07%
Energen Corporation 19,600 354,025
Equitable Resources,
Incorporated 25,500 851,062
Laclede Gas Company 100 2,163
Louis Dreyfus Natural Gas
Corporation * 15,300 277,312
Southwest Gas Corporation 8,500 195,500
Southwestern Energy
Company 29,900 196,219
----------
1,876,281
HOMEBUILDERS - 0.98%
Castle & Cooke, Incorporated * 2,700 34,256
DeWolfe Company,
Incorporated * 2,400 16,200
Fortress Group, Incorporated * 1,600 1,100
Kaufman & Broad Home
Corporation 11,600 280,575
Ryland Group, Incorporated 8,800 202,950
Saxton, Incorporated * 2,700 7,087
Schottenstein Homes,
Incorporated 6,300 98,044
United States Home
Corporation * 700 17,894
Walter Industries,
Incorporated 18,400 198,950
Washington Homes,
Incorporated * 6,900 34,500
----------
891,556
HOTELS & RESTAURANTS - 1.85%
Aztar Corporation * 20,500 222,937
Bridgestreet Accomodations,
Incorporated * 8,700 13,050
Crown Group, Incorporated * 2,600 12,838
</TABLE>
The accompanying notes are an integral part of the financial statements.
116
<PAGE> 159
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
HOTELS & RESTAURANTS - CONTINUED
Garden Fresh Restaurant
Corporation * 1,700 $ 29,113
Lone Star Steakhouse & Saloon * 28,500 254,273
Luby's Cafeterias,
Incorporated 30,200 343,525
Morton's Restaurant Group,
Incorporated * 2,000 31,000
Phoenix Restaurant Group,
Incorporated * 6,200 3,875
Rare Hospitality International,
Incorporated * 5,400 116,859
Ryan's Family Steak Houses,
Incorporated * 21,600 183,600
Sonesta International Hotels
Corporation, Class A 2,800 21,700
Sonic Corporation * 6,600 188,100
Trendwest Resorts,
Incorporated * 1,300 29,250
Vicorp Restaurants,
Incorporated * 11,100 178,987
Wall Street Deli, Incorporated * 3,300 3,713
WMS Industries, Incorporated * 3,300 43,313
----------
1,676,133
HOUSEHOLD APPLIANCES - 0.36%
American Biltrite,
Incorporated 8,100 115,425
Associate Materials,
Incorporated 900 14,737
Catalina Lighting,
Incorporated * 5,600 26,950
Ladd Furniture, Incorporated * 700 13,825
Lesco, Incorporated 6,800 115,600
Toro Company 1,100 41,044
----------
327,581
HOUSEHOLD PRODUCTS - 0.47%
Salton, Incorporated * 500 16,719
Topps, Incorporated * 27,100 281,162
Windmere Durable Holdings,
Incorporated * 7,800 132,600
----------
430,481
INDUSTRIAL MACHINERY - 0.72%
Ampco Pittsburgh
Corporation 7,700 77,963
CPAC, Incorporated 600 4,875
Moore Products Company * 2,300 91,713
Peerless Manufacturing
Company 1,600 20,800
Quipp, Incorporated * 2,600 39,000
SPX Corporation * 3,400 274,762
Summa Industries * 1,200 13,875
Tecumseh Products Company,
Class B 3,100 $ 129,425
----------
652,413
INDUSTRIALS - 0.13%
ACX Technologies,
Incorporated * 7,400 79,088
Federal Screw Works 900 37,800
----------
116,888
INSURANCE - 1.56%
Acceptance Insurance
Company * 500 2,906
Alleghany Corporation * 800 148,400
Intercontinental Life
Corporation * 10,200 94,350
Kansas City Life Insurance
Company 5,700 192,375
Merchants Group,
Incorporated 1,000 19,500
Midland Company 1,500 31,125
National Security Group,
Incorporated 1,900 20,900
National Western Life Insurance
Company, Class A * 1,700 116,663
PMA Capital Corporation,
Class A 9,000 178,875
Standard Management
Corporation * 2,900 13,775
White Mountains Insurance
Group, Ltd. 5,000 602,500
----------
1,421,369
INVESTMENT COMPANIES - 1.21%
Eaton Vance Corporation 18,800 714,400
John Nuveen Company,
Class A 6,400 230,800
Raymond James Financial,
Incorporated 4,100 76,619
Stifel Financial Corporation 7,407 73,144
----------
1,094,963
LEISURE TIME - 0.75%
Coleman Company,
Incorporated * 7,900 73,569
Four Media Company * 9,400 139,825
Handleman Company * 18,500 247,437
ILX, Incorporated * 5,500 8,250
K2, Incorporated * 3,200 24,400
Lakes Gaming, Incorporated * 50 397
Quintel Communications,
Incorporated * 8,200 73,800
</TABLE>
The accompanying notes are an integral part of the financial statements.
117
<PAGE> 160
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
LEISURE TIME - CONTINUED
Saucony, Incorporated,
Class A * 2,000 $ 29,500
THQ, Incorporated * 3,800 88,113
----------
685,291
METAL & METAL PRODUCTS - 0.99%
Commercial Metals Company 4,200 142,537
Lindberg Corporation 5,700 44,175
Mueller Industry,
Incorporated * 19,700 714,125
----------
900,837
MINING - 1.91%
Brush Wellman, Incorporated 10,000 168,125
Fansteel, Incorporated * 1,700 6,588
Lincoln Electric Holding,
Incorporated 47,200 973,500
Pittston Company * 4,500 47,812
Stillwater Mining Company * 5,400 172,125
Usec, Incorporated 52,400 366,800
----------
1,734,950
MOBILE HOMES - 0.23%
Liberty Homes, Incorporated,
Class A 4,500 36,844
Skyline Corporation 7,400 173,900
----------
210,744
OFFICE FURNISHINGS & SUPPLIES - 0.67%
Kimball International,
Incorporated, Class B 25,200 415,800
Standard Register 10,000 193,750
----------
609,550
PAPER - 0.46%
Badger Paper Mills,
Incorporated * 2,300 11,500
Chesapeake Corporation 3,700 112,850
P.H. Glatfelter Company 20,000 291,250
----------
415,600
PETROLEUM SERVICES - 0.47%
Kaneb Services, Incorporated * 15,600 68,250
Miller Exploration Company * 500 547
PS Group Holding,
Incorporated * 6,500 73,125
Seitel, Incorporated * 8,500 57,375
Tesoro Petroleum
Corporation * 20,000 231,250
----------
430,547
PHOTOGRAPHY - 0.16%
CPI Corporation 6,400 $ 144,400
----------
POLLUTION CONTROL - 0.07%
Harding Lawson Associates
Group * 5,300 41,075
MFRI, Incorporated * 4,300 18,544
----------
59,619
PUBLISHING - 0.93%
Courier Corporation 650 15,438
Esquire Communications, Ltd. * 2,000 1,125
Houghton Mifflin Company 8,600 362,812
John H. Harland Company 20,400 373,575
Media General, Incorporated,
Class A 400 20,800
Primesource Corporation 300 1,425
Thomas Nelson, Incorporated 7,600 70,300
----------
845,475
RAILROADS & EQUIPMENT - 0.02%
Greenbrier Company,
Incorporated 2,200 18,975
----------
REAL ESTATE - 3.85%
AMREP Corporation * 5,100 24,225
Bruce Seibels Group,
Incorporated * 4,700 8,225
Cabot Industrial Trust 27,600 507,150
Captec Net Lease Realty,
Incorporated 3,300 24,750
CBL & Associates Properties,
Incorporated 12,700 261,937
Cornerstone Realty Income
Trust, Incorporated 31,500 307,125
Excel Legacy Corporation * 16,600 54,988
Healthcare Realty Trust 30,400 475,000
LNR Property Corporation 10,700 212,662
New Plan Excel Realty Trust,
Incorporated 30,100 475,956
Pacific Gulf Properties,
Incorporated 1,800 36,450
Pan Pacific Retail
Properties, Incorporated 13,200 215,325
Prentiss Properties Trust SBI 23,600 495,600
Price Enterprises,
Incorporated * 26,100 190,041
SL Green Realty Corporation 8,200 178,350
Westfield America,
Incorporated 2,400 29,550
----------
3,497,334
</TABLE>
The accompanying notes are an integral part of the financial statements.
118
<PAGE> 161
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RETAIL GROCERY - 0.24%
Arden Group, Incorporated * 3,600 $ 129,600
Foodarama Supermarkets * 1,400 27,825
Mexican Restaurants,
Incorporated * 2,000 7,750
Schultz Sav-O Stores,
Incorporated 1,800 22,950
Village Super Market,
Incorporated, Class A * 2,500 32,656
----------
220,781
RETAIL TRADE - 4.66%
BJ's Wholesale Club,
Incorporated * 46,900 1,711,850
Burlington Coat Factory
Warehouse 25,500 353,812
Charming Shoppes,
Incorporated * 23,200 153,700
Filenes Basement
Corporation * 10,900 1,330
Footstar, Incorporated * 14,100 430,050
Friedmans, Incorporated,
Class A 4,000 30,000
Hancock Fabrics,
Incorporated 9,300 29,063
Intertan, Incorporated * 4,500 117,562
IPI, Incorporated * 3,800 9,500
J.W. Mays, Incorporated * 1,600 8,800
Loehmanns, Incorporated * 16,100 805
Marinemax, Incorporated * 3,200 30,400
Micro Warehouse,
Incorporated * 26,100 482,850
PC Connection, Incorporated* 3,000 103,500
Petco Animal Supplies,
Incorporated * 2,600 38,675
Shoe Carnival, Incorporated * 7,000 70,438
Spiegel, Incorporated,
Class A * 12,700 89,297
Sport Chalet, Incorporated * 5,200 26,650
Todays Man * 26,300 16,438
Tuesday Morning Corporation * 5,400 99,562
Value City Department Stores,
Incorporated * 15,400 232,925
Zale Corporation * 4,100 198,337
----------
4,235,544
SOFTWARE - 6.64%
Activision, Incorporated * 1,300 19,906
Ardent Software,
Incorporated * 11,500 448,500
AVT Corporation * 3,800 178,600
Broadvision, Incorporated * 300 51,019
Computer Network
Technology * 16,200 371,587
CSP, Incorporated * 3,895 $ 29,699
Group 1 Software,
Incorporated * 400 5,200
Imation Corporation * 26,100 875,981
Mercury Interactive
Corporation * 13,600 1,467,950
Peregrine Systems,
Incorporated * 17,300 1,456,444
Pinnacle Systems,
Incorporated * 6,200 252,263
Progress Software
Corporation * 2,500 141,875
Project Software &
Development, Incorporated * 6,000 333,000
Symantec Corporation * 400 23,450
Titan Corporation * 8,000 377,000
----------
6,032,474
STEEL - 0.49%
Atchison Casting Corporation * 1,600 14,600
Kaiser Ventures * 1,800 28,772
Pitt DesMoines, Incorporated 4,000 98,500
Quanex Corporation 8,500 216,750
Ryerson Tull, Incorporated 1,500 29,156
Steel Technologies,
Incorporated 3,800 55,100
----------
442,878
TELECOMMUNICATIONS SERVICES - 1.04%
Atlantic Tele-Network,
Incorporated 2,460 22,601
Digital Lightwave,
Incorporated * 200 12,800
Incomnet, Incorporated * 8,500 128
IPC Communications,
Incorporated * 1,500 106,500
Polycom, Incorporated * 8,400 534,975
Price Communications
Corporation * 9,600 267,000
----------
944,004
TELEPHONE - 2.19%
Conestoga Enterprises,
Incorporated 9,300 160,425
Harmonic, Incorporated * 18,800 1,784,825
Hector Communications
Corporation * 3,000 42,000
----------
1,987,250
TOYS, AMUSEMENTS & SPORTING GOODS - 0.37%
Jakks Pacific, Incorporated * 2,100 39,244
</TABLE>
The accompanying notes are an integral part of the financial statements.
119
<PAGE> 162
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
TOYS, AMUSEMENTS & SPORTING GOODS - CONTINUED
Russ Berrie & Company,
Incorporated 11,200 $ 294,000
-----------
333,244
TRANSPORTATION - 0.20%
Alexander & Baldwin,
Incorporated 500 11,406
International Aircraft
Investors * 3,500 21,875
Marine Transport Corporation * 4,500 11,813
Marten Transport, Ltd. * 5,600 72,100
Quixote Corporation 3,700 56,425
Werner Enterprises,
Incorporated 500 7,031
-----------
180,650
TRUCKING & FREIGHT - 1.45%
American Freightways
Corporation * 17,500 283,281
Boyd Brothers Transportation,
Incorporated * 2,900 18,850
Consolidated Freightways
Corporation * 7,200 57,150
Forward Air Corporation * 3,400 147,475
Fritz Companies,
Incorporated * 13,500 141,750
Landstar Systems,
Incorporated * 1,700 72,781
RailAmerica, Incorporated * 7,400 63,362
Railtex, Incorporated * 1,900 33,963
Roadway Express,
Incorporated 9,100 196,787
Sea Containers, Ltd., Class A 400 10,650
U.S. Freightways Corporation 100 4,788
Yellow Corporation * 17,100 287,494
-----------
1,318,331
TOTAL COMMON STOCKS
(Cost: $78,490,807) $88,369,705
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
<S> <C>
SHORT TERM INVESTMENTS - 1.19%
$1,082,635 Navigator Securities Lending
Trust, 5.86% $ 1,082,635
-----------
REPURCHASE AGREEMENTS - 1.52%
$1,384,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 2.50%, to be
repurchased at $1,384,288 on
01/03/2000, collateralized by
$1,090,000 U.S. Treasury Notes,
6.50% due 05/31/2001 (valued at
$1,099,538, including interest)
and $295,000 U.S. Treasury
Notes, 7.50% due 02/15/2005 (valued
at $316,388, including interest) $ 1,384,000
-----------
TOTAL INVESTMENTS (SMALL COMPANY
VALUE TRUST) (Cost: $80,957,442) $90,836,340
===========
</TABLE>
GLOBAL EQUITY TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 87.35%
AUSTRALIA - 1.66%
CSR, Ltd. 1,992,600 $ 4,840,126
Westpac Banking
Corporation, Ltd. 1,460,950 10,077,409
-----------
14,917,535
BELGIUM - 0.75%
Delhaize-Le Lion SA 89,680 6,757,366
-----------
BERMUDA - 0.43%
Terra Nova Bermuda Holdings,
Ltd., Class A 128,700 3,861,000
-----------
CANADA - 1.96%
BCT.Telus Communications,
Incorporated 438,008 10,643,294
Potash Corporation of
Saskatchewan,
Incorporated - CAD 144,900 6,926,290
-----------
17,569,584
DENMARK - 0.47%
Danisco AS 107,500 4,190,069
-----------
FRANCE - 8.07%
Aventis SA 280,200 16,286,365
Groupe Danone 69,480 16,377,813
Michelin (CGDE)-B Shares 99,030 3,890,556
Pernod-Ricard SA 182,950 10,467,934
</TABLE>
The accompanying notes are an integral part of the financial statements.
120
<PAGE> 163
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
FRANCE - CONTINUED
SCOR 186,077 $ 8,210,073
TOTAL Fina SA, B Shares 128,060 17,092,658
-----------
72,325,399
GERMANY - 4.60%
BASF AG 284,110 14,596,103
Bayer AG 152,000 7,196,506
Schering AG 42,300 5,113,307
VEBA AG 162,500 7,898,251
Volkswagen AG 114,610 6,459,558
-----------
41,263,725
HONG KONG - 0.96%
Hong Kong Electric Holdings, Ltd. 2,756,500 8,616,833
-----------
IRELAND - 2.48%
Bank Of Ireland 1,996,810 15,890,740
Green Property Company 1,101,140 6,322,628
-----------
22,213,368
ITALY - 3.46%
Mediaset SPA 839,879 13,063,040
Telecom Italia SPA RISP 2,951,210 17,986,046
-----------
31,049,086
JAPAN - 9.47%
Canon, Incorporated 6,000 238,426
Daiichi Pharmaceutical
Company 610,000 7,934,717
Fuji Photo Film Company 371,000 13,544,387
Hitachi, Ltd. 702,000 11,268,279
Kao Corporation 141,000 4,022,854
Mitsubishi Electric
Corporation 275,000 1,776,451
Mitsui & Company, Ltd. 160,000 1,119,702
Nippon Telegraph & Telephone
Corporation 1,509 25,846,629
Pioneer Electronic 329,000 8,694,333
Sumitomo Marine & Fire 541,000 3,335,911
Tokyo Gas Company 212,000 516,668
Toppan Printing Company 354,000 3,534,110
Toshiba Corporation 400,000 3,053,734
-----------
84,886,201
NETHERLANDS - 3.11%
ABN AMRO Holdings 285,673 7,136,760
International Nederlanded
Groep NV 198,502 11,985,657
Philips Electronics NV 64,710 8,800,055
-----------
27,922,472
PORTUGAL - 0.52%
Cimpor-Cimentos de
Portugual SA 282,016 $ 4,687,464
-----------
SPAIN - 3.60%
Iberdrola SA 854,600 11,845,722
Telefonica SA 819,012 20,460,780
-----------
32,306,502
SWEDEN - 0.89%
Nordbanken Holding AB 1,357,400 7,976,260
-----------
SWITZERLAND - 7.21%
Compagnie Financiere
Richemont AG 11,160 26,633,172
Forbo Holdings AG 7,420 3,494,945
Holderbank Financiere
Glarus, Ltd. 5,005 6,852,289
Nestle SA 12,380 22,679,432
Swisscom AG 12,410 5,019,180
-----------
64,679,018
UNITED KINGDOM - 10.51%
Allied Domecq PLC 2,040,660 10,086,612
Astra Zeneca Group PLC 155,500 6,460,328
Bernard Matthews PLC 1,221,430 2,308,382
Blue Circle Industries 1,053,651 6,161,105
Burmah Castrol PLC 364,358 6,438,710
Cadbury Schweppes 695,200 4,188,628
Great University Stores 860,800 5,005,621
Imperial Tobacco 752,800 6,201,589
J. Sainsbury 1,651,294 9,329,006
National Westminster 227,100 4,878,901
Reckitt Benckiser PLC 1,325,893 12,550,451
Royal & Sun Alliance 1,415,097 10,606,141
WPP Group PLC 639,300 10,016,815
-----------
94,232,289
UNITED STATES - 27.20%
Albertsons, Incorporated 548,159 17,678,128
Alcoa, Incorporated 140,000 11,620,000
B.F. Goodrich Company * 236,100 6,492,750
BJ's Wholesale Club,
Incorporated * 194,200 7,088,300
Boise Cascade Corporation * 170,500 6,905,250
Borg-Warner Automotive,
Incorporated * 210,150 8,511,075
Cadiz, Incorporated * 444,200 4,219,900
Chase Manhattan
Corporation 125,350 9,738,128
Comsat Corporation, Series 1* 252,830 5,024,996
</TABLE>
The accompanying notes are an integral part of the financial statements.
121
<PAGE> 164
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
UNITED STATES - CONTINUED
Enhance Financial Services
Group, Incorporated * 443,000 $ 7,198,750
FINOVA Group, Incorporated 203,740 7,232,770
Fort James Corporation * 245,600 6,723,300
General Dynamics
Corporation 116,700 6,155,925
GenRad, Incorporated * 319,700 5,155,162
Georgia-Pacific Corporation 92,900 4,714,675
GTE Corporation * 170,300 12,016,794
Houghton Mifflin Company 415,050 17,509,922
MBIA, Incorporated 291,550 15,397,484
Mellon Financial Corporation 396,500 13,505,781
NCR Corporation * 152,431 5,773,324
Noble Drilling Corporation * 160,390 5,252,772
Pharmacia & Upjohn,
Incorporated * 106,450 4,790,250
Philip Morris Companies,
Incorporated 860,750 19,958,641
Rite Aid Corporation 213,800 2,391,888
Sears Roebuck & Company 226,500 6,894,094
Tupperware Corporation * 277,700 4,703,544
U.S. Bancorp 232,900 5,545,931
Unicom Corporation * 467,750 15,669,625
------------
243,869,159
TOTAL COMMON STOCKS
(Cost: $694,736,974) $783,323,330
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
<S> <C>
SHORT TERM INVESTMENTS - 7.04%
$63,166,443 Navigator Securities Lending
Trust, 5.86% $ 63,166,443
------------
REPURCHASE AGREEMENTS - 5.61%
$50,297,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 2.50%, to be
repurchased at $50,307,479 on
01/03/2000, collateralized by
$49,750,000 U.S. Treasury Bonds,
6.75% due 08/15/2026 (valued at
$51,304,688, including interest) $ 50,297,000
------------
TOTAL INVESTMENTS (GLOBAL EQUITY TRUST)
(Cost: $808,200,417) $896,786,773
============
</TABLE>
The Trust had the following five top industry concentrations at December 31,1999
(as a percentage of total value of investments).
<TABLE>
<S> <C>
Banking 8.90%
Food & Beverages 8.35%
Telephone 6.60%
Tobacco 6.28%
Insurance 6.12%
</TABLE>
GROWTH TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 96.96%
AEROSPACE - 2.21%
Boeing Company 159,200 $ 6,616,750
United Technologies
Corporation 120,000 7,800,000
-----------
14,416,750
BANKING - 0.66%
Zions BanCorporation 72,400 4,285,175
-----------
BROADCASTING - 0.98%
Comcast Corporation,
Class A 79,600 4,024,775
MediaOne Group,
Incorporated * 30,800 2,365,825
-----------
6,390,600
BUILDING MATERIALS & CONSTRUCTION - 0.17%
Dycom Industries,
Incorporated * 25,600 1,128,000
-----------
BUSINESS SERVICES - 6.88%
America Online, Incorporated * 256,800 19,372,350
American Management Systems,
Incorporated * 117,300 3,680,287
First Data Corporation 61,500 3,032,719
SABRE Group Holdings,
Incorporated, Class A * 67,300 3,449,125
Tyco International, Ltd. 76,700 2,981,713
Viad Corporation 92,100 2,567,288
Yahoo, Incorporated * 22,600 9,778,737
-----------
44,862,219
COMPUTERS & BUSINESS EQUIPMENT - 16.38%
3Com Corporation * 196,900 9,254,300
Apple Computer,
Incorporated * 13,600 1,398,250
Cisco Systems, Incorporated* 325,500 34,869,187
</TABLE>
The accompanying notes are an integral part of the financial statements.
122
<PAGE> 165
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMPUTERS & BUSINESS EQUIPMENT - CONTINUED
CSG Systems International,
Incorporated * 22,000 $ 877,250
Dell Computer Corporation * 126,200 6,436,200
EMC Corporation * 117,300 12,815,025
Hewlett-Packard Company 46,700 5,320,881
International Business
Machines Corporation 124,200 13,413,600
Network Solutions,
Incorporated * 18,800 4,090,175
Sun Microsystems,
Incorporated * 166,600 12,901,088
Tandy Corporation 73,100 3,595,606
Xircom, Incorporated * 25,100 1,882,500
------------
106,854,062
DOMESTIC OIL - 0.22%
Dynegy, Incorporated 58,400 1,419,850
------------
DRUGS & HEALTH CARE - 11.59%
Abbott Laboratories 41,000 1,488,813
Amgen, Incorporated * 58,700 3,525,669
Biogen, Incorporated * 43,400 3,667,300
Bristol-Myers Squibb
Company 194,000 12,452,375
Eli Lilly & Company 47,500 3,158,750
Johnson & Johnson 118,100 10,998,062
Medtronic, Incorporated 35,300 1,286,244
Merck & Company,
Incorporated 186,600 12,513,862
Pfizer, Incorporated 436,800 14,168,700
Schering-Plough Corporation 158,400 6,682,500
Warner-Lambert Company 69,200 5,670,075
------------
75,612,350
ELECTRICAL EQUIPMENT - 6.90%
General Electric Company 290,700 44,985,825
------------
ELECTRIC UTILITIES - 0.66%
AES Corporation * 57,900 4,328,025
------------
ELECTRONICS - 13.43%
Analog Devices, Incorporated * 55,000 5,115,000
Applied Materials,
Incorporated * 82,400 10,439,050
Intel Corporation 302,400 24,891,300
Jabil Circuit, Incorporated * 91,600 6,686,800
JDS Uniphase Corporation * 64,000 10,324,000
Lucent Technologies,
Incorporated 241,800 18,089,662
Motorola, Incorporated 21,700 3,195,325
Texas Instruments,
Incorporated 52,700 5,105,312
Xilinx, Incorporated * 82,000 $ 3,728,438
-----------
87,574,887
FINANCIAL SERVICES - 1.81%
American Express Company 23,500 3,906,875
Citigroup, Incorporated 61,050 3,392,090
Federal National Mortgage
Association 22,900 1,429,819
Metris Companies,
Incorporated 86,900 3,101,244
-----------
11,830,028
FOOD & BEVERAGES - 2.69%
Dean Foods Company 83,500 3,319,125
International Home Foods,
Incorporated * 214,100 3,719,988
PepsiCo, Incorporated 47,800 1,684,950
The Coca-Cola Company 150,800 8,784,100
-----------
17,508,163
HOUSEHOLD APPLIANCES - 0.91%
Maytag Corporation 123,100 5,908,800
-----------
HOUSEHOLD PRODUCTS - 2.58%
Colgate-Palmolive Company 45,500 2,957,500
Procter & Gamble Company 110,900 12,150,481
Tupperware Corporation 102,100 1,729,319
-----------
16,837,300
NEWSPAPERS - 1.76%
Central Newspapers,
Incorporated, Class A 97,000 3,819,375
Dow Jones & Company,
Incorporated 50,000 3,400,000
Tribune Company 77,600 4,272,850
-----------
11,492,225
PETROLEUM SERVICES - 0.21%
Apache Corporation 37,600 1,388,850
-----------
PUBLISHING - 0.69%
Time Warner, Incorporated 62,500 4,527,344
-----------
RETAIL GROCERY - 0.43%
Safeway, Incorporated * 79,300 2,820,106
-----------
RETAIL TRADE - 9.85%
Abercrombie & Fitch Company,
Class A * 75,300 2,009,569
American Eagle Outfitters,
Incorporated * 46,300 2,083,500
Best Buy Company,
Incorporated * 70,900 3,558,294
</TABLE>
The accompanying notes are an integral part of the financial statements.
123
<PAGE> 166
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RETAIL TRADE - CONTINUED
BJ's Wholesale Club,
Incorporated * 79,600 $ 2,905,400
Circuit City Stores,
Incorporated 44,300 1,996,269
Costco Wholesale
Corporation * 14,500 1,323,125
Dayton Hudson Corporation 48,400 3,554,375
GAP, Incorporated 57,900 2,663,400
Home Depot, Incorporated 248,250 17,020,640
Ross Stores, Incorporated 134,100 2,405,419
Tiffany & Company 45,000 4,016,250
TJX Companies,
Incorporated 62,300 1,273,256
Wal-Mart Stores,
Incorporated 280,900 19,417,212
------------
64,226,709
SOFTWARE - 10.41%
Adobe Systems, Incorporated 38,200 2,568,950
Computer Associates
International, Incorporated 81,500 5,699,906
Microsoft Corporation * 366,400 42,777,200
Oracle Systems Corporation * 125,400 14,052,637
Symantec Corporation * 47,700 2,796,413
------------
67,895,106
TELECOMMUNICATIONS SERVICES - 2.26%
QUALCOMM, Incorporated * 54,800 9,651,650
Tellabs, Incorporated * 79,400 5,096,488
------------
14,748,138
TELEPHONE - 2.89%
American Telephone &
Telegraph Corporation 27,200 1,380,400
Bell Atlantic Corporation 22,200 1,366,688
MCI WorldCom, Incorporated * 206,100 10,936,181
Nextel Communications,
Incorporated, Class A * 50,000 5,156,250
------------
18,839,519
TOBACCO - 0.39%
Philip Morris Companies,
Incorporated 110,000 2,550,625
------------
TOTAL COMMON STOCKS
(Cost: $510,287,329) $632,430,656
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
<S> <C>
SHORT TERM INVESTMENTS - 1.66%
$10,858,409 Navigator Securities Lending Trust,
5.86% $ 10,858,409
------------
REPURCHASE AGREEMENTS - 1.38%
$8,974,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 2.50%, to be
repurchased at $8,975,870 on
01/03/2000, collateralized by
$8,460,000 U.S. Treasury Bonds,
7.25% due 08/15/2022 (valued at
$9,157,950, including interest) $ 8,974,000
------------
TOTAL INVESTMENTS (GROWTH TRUST)
(Cost: $530,119,738) $652,263,065
============
</TABLE>
LARGE CAP GROWTH TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 90.18%
AEROSPACE - 1.01%
General Dynamics
Corporation 25,300 $1,334,575
Litton Industries, Incorporated * 21,800 1,087,275
United Technologies
Corporation 28,700 1,865,500
----------
4,287,350
BANKING - 1.27%
Commonwealth Bank of
Australia* 33,544 577,628
FleetBoston Financial
Corporation 57,100 1,987,794
Mellon Financial Corporation 49,800 1,696,312
State Street Corporation 15,400 1,125,162
----------
5,386,896
BROADCASTING - 4.68%
American Telephone &
Telegraph Corporation-
Liberty Media Group,
Class A * 62,600 3,552,550
Cablevision Systems
Corporation, Class A * 28,100 2,121,550
</TABLE>
The accompanying notes are an integral part of the financial statements.
124
<PAGE> 167
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BROADCASTING - CONTINUED
CBS Corporation * 60,307 $ 3,855,879
Chris Craft Industries,
Incorporated * 13,400 966,475
Comcast Corporation,
Class A 61,600 3,114,650
Fox Entertainment Group,
Incorporated, Class A * 58,700 1,463,831
Infinity Broadcasting
Corporation, Class A * 48,600 1,758,712
Television Francaise 2,300 1,204,790
Univision Communications,
Incorporated, Class A * 17,700 1,808,719
-----------
19,847,156
BUSINESS SERVICES - 8.55%
America Online, Incorporated * 61,200 4,616,775
At Home Corporation,
Series A * 17,500 750,313
Automatic Data Processing,
Incorporated 78,400 4,223,800
First Data Corporation 31,700 1,563,206
GoTo.com, Incorporated * 15,400 904,750
Legato Systems,
Incorporated * 27,200 1,871,700
Lycos, Incorporated * 11,600 922,925
OmniCom Group,
Incorporated 18,900 1,890,000
Preview Travel, Incorporated * 24,600 1,282,275
RSA Security, Incorporated * 25,900 2,007,250
Ticketmaster Online
Citysearch, Class B * 47,800 1,837,312
TMP Worldwide, Incorporated * 7,100 1,008,200
True North Communications 25,600 1,144,000
United Parcel Service,
Incorporated, Class B 36,100 2,490,900
Verio, Incorporated * 40,100 1,852,119
Vignette Corporation * 15,600 2,542,800
WPP Group PLC 25,400 2,111,375
Yahoo, Incorporated * 7,500 3,245,156
-----------
36,264,856
CHEMICALS - 0.51%
Georgia Gulf Corporation 19,200 584,400
Monsanto Company 43,800 1,560,375
-----------
2,144,775
COMPUTERS & BUSINESS EQUIPMENT - 9.31%
Cisco Systems, Incorporated * 145,450 15,581,331
Citrix Systems, Incorporated * 20,600 2,533,800
Dell Computer Corporation * 95,400 $ 4,865,400
EMC Corporation * 45,200 4,938,100
International Business
Machines Corporation 35,500 3,834,000
Mypoints Common,
Incorporated * 6,600 488,400
Redback Networks,
Incorporated * 6,900 1,224,750
Sun Microsystems,
Incorporated * 62,400 4,832,100
Trans Cosmos, Incorporated 2,800 1,194,872
-----------
39,492,753
CONTAINERS & GLASS - 0.32%
Owens-Illinois, Incorporated * 54,500 1,365,906
-----------
CRUDE PETROLEUM & NATURAL GAS - 0.13%
Barrett Resources
Corporation * 19,000 559,313
-----------
DOMESTIC OIL - 0.65%
Exxon Mobil Corporation 34,100 2,747,181
-----------
DRUGS & HEALTH CARE - 12.71%
American Home Products
Corporation 25,000 985,938
Amgen, Incorporated * 98,800 5,934,175
Bausch & Lomb, Incorporated 21,500 1,471,406
Becton Dickinson & Company 8,700 232,725
Bristol-Myers Squibb
Company 98,800 6,341,725
Eli Lilly & Company 42,300 2,812,950
Gilead Sciences,
Incorporated * 25,500 1,380,187
Human Genome Sciences,
Incorporated * 12,400 1,892,550
Inhale Therapeutic Systems * 22,500 957,656
Johnson & Johnson 45,600 4,246,500
Medtronic, Incorporated 41,000 1,493,937
Merck & Company,
Incorporated 123,100 8,255,394
Millennium Pharmaceuticals * 25,700 3,135,400
Pfizer, Incorporated 64,257 2,084,336
Pharmacia & Upjohn,
Incorporated 28,000 1,260,000
Protein Design Labs,
Incorporated * 19,207 1,344,490
QLT PhotoTherapeutics,
Incorporated * 14,800 869,608
</TABLE>
The accompanying notes are an integral part of the financial statements.
125
<PAGE> 168
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
DRUGS & HEALTH CARE - CONTINUED
Schering-Plough Corporation 74,500 $ 3,142,969
SmithKline Beecham PLC, ADR 24,800 1,598,050
Warner-Lambert Company 54,500 4,465,594
-----------
53,905,590
ELECTRICAL EQUIPMENT - 5.29%
Emerson Electric Company 42,300 2,426,963
Furukawa Electric Company, Ltd. 86,000 1,304,688
General Electric Company 114,300 17,687,925
Omron Corporation 44,000 1,014,192
-----------
22,433,768
ELECTRIC UTILITIES - 0.81%
AES Corporation * 24,200 1,808,950
Calpine Corporation * 16,200 1,036,800
Niagara Mohawk Holdings,
Incorporated * 41,300 575,619
-----------
3,421,369
ELECTRONICS - 9.23%
Agilent Technologies,
Incorporated * 33,100 2,559,044
Altera Corporation * 32,500 1,610,781
Applied Materials,
Incorporated * 11,600 1,469,575
Intel Corporation 143,700 11,828,306
Lexmark International Group,
Incorporated, Class A * 20,337 1,840,499
Linear Technology
Corporation 13,000 930,313
Lucent Technologies,
Incorporated 107,024 8,006,733
Micron Technology,
Incorporated * 9,500 738,625
Motorola, Incorporated 28,400 4,181,900
Synopsys, Incorporated * 21,800 1,455,150
Texas Instruments,
Incorporated 46,500 4,504,687
-----------
39,125,613
FINANCIAL SERVICES - 4.37%
American Express Company 23,400 3,890,250
Association First Capital
Corporation, Class A 56,468 1,549,341
Charles Schwab Corporation 25,500 978,563
Citigroup, Incorporated 58,100 3,228,181
Federal Home Loan Mortgage
Corporation 30,300 1,425,994
Federal National Mortgage
Association 70,200 4,383,112
Goldman Sachs Group,
Incorporated 19,000 1,789,562
Morgan Stanley Dean Witter &
Company 9,100 $ 1,299,025
-----------
18,544,028
FOOD & BEVERAGES - 2.04%
H.J. Heinz Company 28,700 1,142,619
PepsiCo, Incorporated 27,900 983,475
Quaker Oats Company 36,800 2,415,000
The Coca-Cola Company 70,700 4,118,275
-----------
8,659,369
GOLD - 0.43%
Barrick Gold Corporation 23,600 417,425
Barrick Gold Corporation - CAD 4,900 87,409
Newmont Mining Corporation 29,400 720,300
Placer Dome, Incorporated 50,900 547,175
Placer Dome, Incorporated - CAD 4,300 45,875
-----------
1,818,184
HOTELS & RESTAURANTS - 0.87%
McDonalds Corporation 91,100 3,672,469
-----------
HOUSEHOLD APPLIANCES - 0.44%
Corning, Incorporated 14,600 1,882,488
-----------
HOUSEHOLD PRODUCTS - 2.41%
Gillette Company 72,900 3,002,569
Procter & Gamble Company 65,700 7,198,256
-----------
10,200,825
INDUSTRIAL MACHINERY - 0.72%
Ingersoll-Rand Company 28,700 1,580,294
Mannesmann AG 6,100 1,471,687
-----------
3,051,981
INSURANCE - 1.61%
American International Group,
Incorporated 43,671 4,721,927
CIGNA Corporation 15,500 1,248,719
Marsh & Mclennan Companies,
Incorporated 9,100 870,756
-----------
6,841,402
INTERNATIONAL OIL - 0.84%
Halliburton Company 54,500 2,193,625
Texaco, Incorporated 25,100 1,363,244
-----------
3,556,869
LEISURE TIME - 0.80%
CNET, Incorporated * 20,600 1,169,050
Seagram, Ltd. 18,600 833,810
The Walt Disney Company 47,357 1,385,192
-----------
3,388,052
</TABLE>
The accompanying notes are an integral part of the financial statements.
126
<PAGE> 169
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
LIQUOR - 0.63%
Anheuser-Busch Companies,
Incorporated 37,900 $ 2,686,162
------------
NEWSPAPERS - 1.05%
New York Times Company,
Class A 90,600 4,450,725
------------
PAPER - 0.83%
Champion International
Corporation 18,600 1,152,038
Minnesota Mining &
Manufacturing Company 24,100 2,358,787
------------
3,510,825
PETROLEUM SERVICES - 0.42%
Schlumberger, Ltd. 28,400 1,597,500
Transocean Offshore,
Incorporated 5,498 185,222
------------
1,782,722
PUBLISHING - 1.40%
Reuters Group PLC 26,000 2,101,125
Time Warner, Incorporated 53,200 3,853,675
------------
5,954,800
RETAIL TRADE - 5.16%
Bulgari SPA 109,300 982,122
Costco Wholesale
Corporation * 28,900 2,637,125
Dayton Hudson Corporation 19,200 1,410,000
Home Depot, Incorporated 107,250 7,353,328
Swatch Group 5,036 1,173,369
Wal-Mart Stores,
Incorporated 120,700 8,343,388
------------
21,899,332
SOFTWARE - 5.85%
BMC Software, Incorporated * 14,900 1,191,069
Inktomi Corporation * 13,000 1,153,750
Intuit, Incorporated * 34,900 2,091,818
Microsoft Corporation * 174,300 20,349,525
------------
24,786,162
TELECOMMUNICATIONS SERVICES - 2.14%
Cox Communications,
Incorporated, Class A * 40,100 2,065,150
Focal Communications
Corporation * 62,600 1,510,225
Metromedia Fiber Network,
Incorporated, Class A * 42,100 2,018,169
Powertel, Incorporated * 15,300 1,535,738
PrimaCom AG 16,500 1,000,600
Vodafone Group PLC, ADR 19,250 $ 952,875
------------
9,082,757
TELEPHONE - 2.74%
Allegiance Telecom,
Incorporated * 13,700 1,263,825
American Telephone &
Telegraph Corporation 29,541 1,499,206
DDI Corporation 58 794,754
MCI WorldCom, Incorporated * 34,541 1,832,805
Nextel Communications,
Incorporated, Class A * 10,900 1,124,062
SBC Communications,
Incorporated 35,645 1,737,694
Sprint Corporation (FON Group) 15,200 1,023,150
Telephone & Data Systems,
Incorporated 8,900 1,121,400
Western Wireless Corporation,
Class A * 18,600 1,241,550
------------
11,638,446
TOBACCO - 0.96%
Philip Morris Companies,
Incorporated 175,000 4,057,812
------------
TOTAL COMMON STOCKS
(Cost: $320,756,028) $382,447,935
------------
RIGHTS - 0%
TELECOMMUNICATIONS
TALK.com, Incorporated 1,315 0
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
<S> <C>
SHORT TERM INVESTMENTS - 5.08%
$21,560,181 Navigator Securities Lending
Trust, 5.86% $ 21,560,181
------------
REPURCHASE AGREEMENTS - 4.74%
$20,076,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 5.00%, to be
repurchased at $20,084,365 on
01/03/2000, collateralized by
$18,915,000 U.S. Treasury Bonds,
8.75% due 11/15/2008 (valued at
$20,475,488, including interest)
and $5,000 U.S. Treasury Notes,
6.75% due 04/30/2000 ( valued at
$5,069, including interest) $ 20,076,000
------------
TOTAL INVESTMENTS (LARGE CAP
GROWTH TRUST) (Cost: $362,392,209) $424,084,116
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
127
<PAGE> 170
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 -CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
QUANTITATIVE EQUITY TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 89.15%
AEROSPACE - 2.15%
Honeywell International,
Incorporated 78,000 $ 4,499,625
United Technologies
Corporation 85,600 5,564,000
-----------
10,063,625
AIR TRAVEL - 0.74%
Southwest Airlines Company 214,400 3,470,600
-----------
AUTOMOBILES - 1.26%
Ford Motor Company 110,400 5,899,500
-----------
BANKING - 5.00%
Bank America Corporation 91,100 4,572,081
Charter One Financial,
Incorporated 42,525 813,291
Chase Manhattan Corporation 61,000 4,738,937
FleetBoston Financial
Corporation 109,800 3,822,412
MBNA Corporation 151,100 4,117,475
Providian Financial
Corporation 19,800 1,803,038
Washington Mutual,
Incorporated 136,600 3,551,600
-----------
23,418,834
BROADCASTING - 1.17%
Adelphia Communications
Corporation, Class A * 28,900 1,896,563
Clear Channel Communications * 13,400 1,195,950
Univision Communications,
Incorporated, Class A * 23,500 2,401,406
-----------
5,493,919
BUSINESS SERVICES - 3.33%
Amdocs, Ltd. * 41,700 1,438,650
America Online, Incorporated * 82,800 6,246,225
Optio Software, Incorporated 8 10,000 235,000
Outsource International,
Incorporated * 75,000 142,969
TMP Worldwide, Incorporated * 13,900 1,973,800
Tyco International, Ltd. 125,000 4,859,375
Xpedior, Incorporated * 25,000 718,750
-----------
15,614,769
CHEMICALS - 2.46%
Monsanto Company 156,800 $ 5,586,000
PPG Industries, Incorporated 72,900 4,560,806
Waters Corporation * 25,800 1,367,400
-----------
11,514,206
COMPUTERS & BUSINESS EQUIPMENT - 5.74%
Cisco Systems, Incorporated * 81,800 8,762,825
CSG Systems International,
Incorporated * 35,900 1,431,512
EMC Corporation * 89,400 9,766,950
Pitney Bowes, Incorporated 92,700 4,478,569
Xerox Corporation 108,300 2,457,056
-----------
26,896,912
CONSTRUCTION MATERIALS - 0.83%
Masco Corporation 153,700 3,900,138
-----------
COSMETICS & TOILETRIES - 0.24%
Estee Lauder Companies,
Incorporated, Class A 22,600 1,139,888
-----------
CRUDE PETROLEUM & NATURAL GAS - 1.00%
Conoco, Incorporated, Class A 189,200 4,682,700
-----------
DOMESTIC OIL - 1.80%
Anadarko Petroleum Corporation 57,200 1,951,950
Conoco, Incorporated, Class B 57,800 1,437,775
USX-Marathon Group 204,000 5,036,250
-----------
8,425,975
DRUGS & HEALTH CARE - 6.55%
Biogen, Incorporated * 22,700 1,918,150
Guidant Corporation 129,500 6,086,500
McKesson HBOC, Incorporated 61,300 1,383,081
Medimmune, Incorporated * 13,100 2,172,963
Medtronic, Incorporated 156,700 5,709,756
Schering-Plough Corporation 80,400 3,391,875
United Healthcare
Corporation 88,000 4,675,000
Warner-Lambert Company 65,200 5,342,325
-----------
30,679,650
ELECTRICAL EQUIPMENT - 3.29%
Emerson Electric Company 24,600 1,411,425
General Electric Company 72,300 11,188,425
KLA-Tencor Corporation * 15,100 1,681,762
TeleCorp PCS, Incorporated,
Class A * 30,000 1,140,000
-----------
15,421,612
</TABLE>
The accompanying notes are an integral part of the financial statements.
128
<PAGE> 171
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 -CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
ELECTRIC UTILITIES - 0.89%
Calpine Corporation * 35,100 $ 2,246,400
Energy East Corporation 42,500 884,531
Public Service Enterprise
Group, Incorporated 29,200 1,016,525
-----------
4,147,456
ELECTRONICS - 13.10%
Agilent Technologies,
Incorporated * 65,000 5,025,313
Applied Materials,
Incorporated * 31,900 4,041,331
Electronics For Imaging,
Incorporated * 22,500 1,307,813
Intel Corporation 69,500 5,720,719
JDS Uniphase Corporation * 45,200 7,291,325
Lexmark International Group,
Incorporated, Class A * 12,900 1,167,450
LSI Logic Corporation * 101,200 6,831,000
Lucent Technologies,
Incorporated 120,275 8,998,073
Motorola, Incorporated 62,400 9,188,400
PMC-Sierra, Incorporated * 10,500 1,683,281
Scientific-Atlanta,
Incorporated 24,300 1,351,688
Sycamore Networks,
Incorporated * 6,000 1,848,000
Texas Instruments,
Incorporated 71,500 6,926,562
-----------
61,380,955
FINANCIAL SERVICES - 4.91%
Capital One Financial
Corporation 20,900 1,007,119
Citigroup, Incorporated 145,500 8,084,344
Federal National Mortgage
Association 89,500 5,588,156
Morgan Stanley Dean Witter &
Company 37,100 5,296,025
T. Rowe Price & Associates,
Incorporated 28,300 1,045,331
Wells Fargo & Company 49,000 1,981,437
-----------
23,002,412
FOOD & BEVERAGES - 2.64%
ConAgra, Incorporated 67,600 1,525,225
Pepsi Bottling Group,
Incorporated 308,200 5,104,562
FOOD & BEVERAGES - CONTINUED
PepsiCo, Incorporated 116,200 $ 4,096,050
Supervalu, Incorporated 81,500 1,630,000
-----------
12,355,837
GAS & PIPELINE UTILITIES - 1.65%
Coastal Corporation 163,300 5,786,944
El Paso Energy Corporation 50,500 1,960,031
-----------
7,746,975
HOTELS & RESTAURANTS - 0.70%
Darden Restaurants,
Incorporated 71,100 1,288,688
MGM Grand, Incorporated 39,200 1,972,250
----------
3,260,938
INDUSTRIAL MACHINERY - 1.08%
Ingersoll-Rand Company 91,900 5,060,244
----------
INSURANCE - 3.15%
American International Group,
Incorporated 64,950 7,022,719
Marsh & McLennan Companies,
Incorporated 80,950 7,745,903
----------
14,768,622
INTERNATIONAL OIL - 0.42%
Atlantic Richfield Company 22,800 1,972,200
----------
LEISURE TIME - 1.18%
Carnival Corporation, Class A 100,400 4,800,375
Royal Caribbean Cruises, Ltd. 15,000 739,687
----------
5,540,062
PAPER - 0.43%
Boise Cascade Corporation 49,600 2,008,800
----------
PETROLEUM SERVICES - 0.44%
Noble Drilling Corporation * 62,700 2,053,425
----------
PUBLISHING - 1.20%
Readers Digest Association,
Incorporated, Class A 50,800 1,485,900
Time Warner, Incorporated 57,300 4,150,669
----------
5,636,569
</TABLE>
The accompanying notes are an integral part of the financial statements.
129
<PAGE> 172
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 -CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RETAIL GROCERY - 1.95%
Kroger Company * 208,700 $ 3,939,213
Safeway, Incorporated 146,200 5,199,237
------------
9,138,450
RETAIL TRADE - 8.73%
Abercrombie & Fitch Company, Class A * 22,700 605,806
Best Buy Company,
Incorporated * 33,800 1,696,338
CVS Corporation 165,800 6,621,637
Dayton Hudson Corporation 59,500 4,369,531
Home Depot, Incorporated 92,700 6,355,744
Lowe's Companies, Incorporated 100,100 5,980,975
Staples, Incorporated * 378,450 7,852,837
Tiffany & Company 25,200 2,249,100
Wal-Mart Stores, Incorporated 74,900 5,177,463
------------
40,909,431
SOFTWARE - 4.56%
Intuit, Incorporated * 21,300 1,276,669
Microsoft Corporation * 123,700 14,441,975
Siebel Systems, Incorporated * 18,100 1,520,400
USA Networks, Incorporated * 32,900 1,817,725
Veritas Software Corporation * 16,100 2,304,312
------------
21,361,081
TELECOMMUNICATIONS SERVICES - 3.03%
Airnet Commerce Corporation * 40,000 1,455,000
Infonet Services Corporation,
Class B * 10,000 262,500
Metromedia Fiber Network,
Incorporated, Class A * 28,300 1,356,631
Tellabs, Incorporated * 71,000 4,557,313
Vodafone Airtouch Group PLC, ADR 132,050 6,536,475
------------
14,167,919
TELEPHONE - 2.75%
American Telephone &
Telegraph Corporation 67,600 3,430,700
MCI WorldCom, Incorporated * 154,455 8,195,768
Qwest Communications
International, Incorporated * 28,900 1,242,700
------------
12,869,168
TOBACCO - 0.47%
Philip Morris Companies,
Incorporated 94,200 2,184,263
------------
TRUCKING & FREIGHT - 0.31%
U.S. Freightways Corporation 30,500 $ 1,460,188
------------
TOTAL COMMON STOCKS
(Cost: $365,123,862) $417,647,323
------------
</TABLE>
PRINCIPAL
AMOUNT VALUE
- ------ -----
SHORT TERM INVESTMENTS - 7.28%
$34,098,803 Navigator Securities Lending Trust, $34,098,803
5.86% ------------
REPURCHASE AGREEMENTS - 3.57%
$16,717,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.95% to be
repurchased at $16,721,110 on
01/03/2000, collateralized by
$16,760,000 U.S. Treasury Notes,
6.375% due 09/30/2001 (valued at
$17,053,300, including interest) $16,717,000
------------
TOTAL INVESTMENTS (QUANTITATIVE EQUITY
TRUST) (Cost: $415,939,665) $468,463,126
============
BLUE CHIP GROWTH TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 94.57%
AEROSPACE - 0.59%
Honeywell International,
Incorporated 181,000 $10,441,438
-----------
APPAREL & TEXTILES - 0.36%
NIKE, Incorporated, Class B 129,300 6,408,431
-----------
AUTO PARTS - 0.61%
Danaher Corporation 222,500 10,735,625
-----------
BANKING - 3.75%
Bank America Corporation 121,800 6,112,837
</TABLE>
The accompanying notes are an integral part of the financial statements.
130
<PAGE> 173
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 -CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BANKING - CONTINUED
Bank of New York,
Incorporated 435,900 $ 17,436,000
Chase Manhattan Corporation 133,600 10,379,050
Firstar Corporation 492,000 10,393,500
Mellon Financial Corporation 443,800 15,116,937
Providian Financial
Corporation 13,000 1,183,813
State Street Corporation 79,900 5,837,694
------------
66,459,831
BROADCASTING - 5.49%
American Telephone &
Telegraph
Corporation-Liberty Media
Group, Class A * 134,500 7,632,875
CBS Corporation * 484,700 30,990,506
Clear Channel Communications * 180,000 16,065,000
Comcast Corporation, Class A 157,200 7,948,425
Fox Entertainment Group,
Incorporated, Class A * 181,500 4,526,156
Infinity Broadcasting
Corporation, Class A * 301,200 10,899,675
MediaOne Group, Incorporated * 249,900 19,195,444
------------
97,258,081
BUSINESS SERVICES - 7.17%
America Online, Incorporated * 363,000 27,383,812
Automatic Data Processing,
Incorporated 303,400 16,345,675
Concord EFS, Incorporated * 18,050 464,788
First Data Corporation 297,700 14,680,331
OmniCom Group, Incorporated 185,100 18,510,000
Tyco International, Ltd. 878,296 34,143,757
United Parcel Service,
Incorporated, Class B 38,900 2,684,100
Yahoo, Incorporated * 29,800 12,894,088
------------
127,106,551
CHEMICALS - 0.21%
Great Lakes Chemical Corporation 99,900 3,814,931
------------
COMPUTERS & BUSINESS EQUIPMENT - 6.27%
3Com Corporation * 26,000 1,222,000
Ceridian Corporation * 62,500 1,347,656
Cisco Systems, Incorporated * 338,650 36,277,881
Citrix Systems, Incorporated * 75,100 $ 9,237,300
Dell Computer Corporation * 421,500 21,496,500
EMC Corporation * 88,100 9,624,925
Hewlett-Packard Company 139,900 15,939,856
International Business
Machines Corporation 27,700 2,991,600
Sun Microsystems,
Incorporated * 168,100 13,017,244
------------
111,154,962
CONSTRUCTION MATERIALS - 0.39%
Masco Corporation 273,100 6,929,913
------------
DOMESTIC OIL - 1.38%
Amerada Hess Corporation 61,300 3,478,775
Exxon Mobil Corporation 260,333 20,973,077
-----------
24,451,852
DRUGS & HEALTH CARE - 12.16%
American Home Products
Corporation 298,000 11,752,375
Amgen, Incorporated * 156,400 9,393,775
Baxter International,
Incorporated 163,800 10,288,687
Biogen, Incorporated * 18,200 1,537,900
Bristol-Myers Squibb Company 382,500 24,551,719
Eli Lilly & Company 181,300 12,056,450
Genetech, Incorporated * 99,700 13,409,650
IMS Health, Incorporated 177,300 4,820,344
Johnson & Johnson 192,900 17,963,812
Medtronic, Incorporated 12,600 459,113
Merck & Company, Incorporated 284,700 19,092,694
Pfizer, Incorporated 585,600 18,995,400
Schering-Plough Corporation 366,800 15,474,375
United Healthcare
Corporation 334,600 17,775,625
Warner-Lambert Company 371,800 30,464,362
Wellpoint Health Networks,
Incorporated, Class A * 113,700 7,497,094
-----------
215,533,375
ELECTRICAL EQUIPMENT - 2.91%
General Electric Company 263,800 40,823,050
Solectron Corporation * 114,000 10,844,250
-----------
51,667,300
ELECTRONICS - 8.58%
Altera Corporation * 171,200 8,485,100
</TABLE>
The accompanying notes are an integral part of the financial statements.
131
<PAGE> 174
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 -CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
ELECTRONICS - CONTINUED
Analog Devices, Incorporated * 10,400 $ 967,200
Applied Materials,
Incorporated * 134,000 16,976,125
Flextronics International * 107,300 4,935,800
Intel Corporation 382,500 31,484,531
JDS Uniphase Corporation * 39,800 6,420,238
Lexmark International Group,
Incorporated, Class A * 33,700 3,049,850
Lucent Technologies,
Incorporated 267,025 19,976,808
Maxim Integrated Products,
Incorporated * 414,600 19,563,937
Motorola, Incorporated 81,200 11,956,700
Texas Instruments,
Incorporated 184,400 17,863,750
Xilinx, Incorporated * 227,800 10,357,781
------------
152,037,820
FINANCIAL SERVICES - 10.80%
American Express Company 128,700 21,396,375
Association First Capital
Corporation, Class A 219,100 6,011,556
Capital One Financial
Corporation 283,500 13,661,156
Citigroup, Incorporated 961,775 53,438,623
Federal Home Loan Mortgage
Corporation 744,200 35,023,913
Federal National Mortgage
Association 330,600 20,641,838
Goldman Sachs Group,
Incorporated 30,500 2,872,719
Morgan Stanley Dean Witter &
Company 103,300 14,746,075
Wells Fargo & Company 585,200 23,664,025
------------
191,456,280
FOOD & BEVERAGES - 1.28%
PepsiCo, Incorporated 385,200 13,578,300
Quaker Oats Company 12,600 826,875
The Coca-Cola Company 93,300 5,434,725
United States Foodservice * 171,894 2,879,224
------------
22,719,124
HOTELS & RESTAURANTS - 0.80%
McDonalds Corporation 223,000 8,989,688
Starwood Hotels & Resorts, Class B 223,300 5,247,550
------------
14,237,238
HOUSEHOLD APPLIANCES - 1.40%
Corning, Incorporated 192,800 $ 24,859,150
------------
HOUSEHOLD PRODUCTS - 1.08%
Colgate-Palmolive Company 107,800 7,007,000
Gillette Company 2,600 107,088
Procter & Gamble Company 109,400 11,986,137
------------
19,100,225
INSURANCE - 2.37%
ACE, Ltd. 320,300 5,345,006
American General
Corporation 28,600 2,170,025
American International Group,
Incorporated 74,418 8,046,446
Berkshire Hathaway,
Incorporated, Class A * 25 1,402,500
Berkshire Hathaway,
Incorporated, Class B * 18 32,940
CIGNA Corporation 25,400 2,046,288
Marsh & McLennan Companies,
Incorporated 157,600 15,080,350
UnumProvident Corporation 12,500 400,781
XL Capital, Ltd., Shares A 143,242 7,430,679
----------
41,955,015
INTERNATIONAL OIL - 1.70%
Chevron Corporation 145,100 12,569,287
Halliburton Company 181,300 7,297,325
Royal Dutch Petroleum
Company, GDR 169,300 10,232,069
----------
30,098,681
LEISURE TIME - 0.26%
Carnival Corporation, Class A 25,900 1,238,344
Hasbro, Incorporated 142,200 2,710,687
The Walt Disney Company 24,800 725,400
----------
4,674,431
NEWSPAPERS - 0.42%
Tribune Company 134,100 7,383,881
----------
PAPER - 1.15%
Kimberly-Clark Corporation 311,900 20,351,475
----------
PETROLEUM SERVICES - 0.66%
BP Amoco PLC 198,600 11,779,463
----------
PHOTOGRAPHY - 0.27%
Eastman Kodak Company 72,200 4,783,250
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
132
<PAGE> 175
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 -CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
PUBLISHING - 1.24%
Time Warner, Incorporated 304,200 $ 22,035,488
--------------
RETAIL GROCERY - 1.50%
Kroger Company * 566,900 10,700,238
Safeway, Incorporated * 446,900 15,892,881
--------------
26,593,119
RETAIL TRADE - 4.61%
CVS Corporation 303,666 12,127,661
Dayton Hudson Corporation 150,000 11,015,625
Home Depot, Incorporated 401,400 27,520,987
Wal-Mart Stores, Incorporated
448,200 30,981,825
--------------
81,646,098
SANITARY SERVICES - 0.08%
Waste Management, Incorporated 77,800 1,337,188
--------------
SOFTWARE - 8.39%
BMC Software, Incorporated * 215,900 17,258,506
Computer Associates International, 222,600 15,568,087
Incorporated
Microsoft Corporation * 588,700 68,730,725
Oracle Systems Corporation * 251,500 28,183,719
Parametric Technology Corporation * 287,100 7,769,644
Veritas Software Corporation * 77,750 11,127,969
--------------
148,638,650
TELECOMMUNICATIONS SERVICES - 2.08%
Nokia Corporaton, ADR 106,700 20,273,000
Tellabs, Incorporated * 49,000 3,145,187
Vodafone Airtouch Group PLC, ADR 271,650 13,446,675
--------------
36,864,862
TELEPHONE - 3.83%
Alltel Corporation 100,200 8,285,287
GTE Corporation 62,200 4,388,988
MCI WorldCom, Incorporated * 528,215 28,028,382
Nextel Communications,
Incorporated, Class A * 74,700 7,703,438
SBC Communications, Incorporated 125,600 6,123,000
Sprint Corporation (FON Group) 199,300 13,415,381
--------------
67,944,476
TOBACCO - 0.38%
Philip Morris Companies,
Incorporated 291,600 $ 6,761,475
--------------
TRUCKING & FREIGHT - 0.40%
Kansas City Southern
Industries, Incorporated 95,300 7,111,763
--------------
TOTAL COMMON STOCKS
(Cost: $1,166,637,581) $1,676,331,442
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
<S> <C>
SHORT TERM INVESTMENTS - 5.01%
$25,000,000 American Petrofina Holding,
6.33% due 01/31/2000 $24,868,125
3,000,000 AWB Finance, Ltd.,
6.10% due 01/31/2000 2,984,750
5,000,000 Corporate Asset Fund,
6.00% due 02/02/2000 4,973,333
120,000 KFW International Finance,
Incorporated, 5.95% due
02/17/2000 119,068
32,798,153 Navigator Securities Lending Trust,
5.86% 32,798,153
2,530,000 Park Avenue Recreation
Corporation, 6.15% due
01/19/2000 2,522,220
8,500,000 Preferred Receivables Funding
Corporation, 6.45% due
01/21/2000 8,469,542
12,000,000 T. Rowe Price Resources Investor
Fund 12,000,000
------------
$88,735,191
REPURCHASE AGREEMENTS - 0.42%
$7,403,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.50%, to be
repurchased at $7,404,542 on
01/03/2000, collateralized by
$6,980,000 U.S. Treasury Bonds,
7.25% due 08/15/2022 (valued at
$7,555,850, including interest) $7,403,000
------------
TOTAL INVESTMENTS (BLUE CHIP GROWTH
TRUST) (Cost: $1,262,775,772) $1,772,469,633
==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
128
<PAGE> 176
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 -CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
REAL ESTATE SECURITIES TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 90.76%
BANKING - 9.02%
Astoria Financial Corporation 12,000 $ 365,250
Bank One Corporation 40,000 1,282,500
Bank United Corporation,
Class A 9,000 245,250
Centura Banks, Incorporated 8,400 370,650
Charter One Financial,
Incorporated 41,700 797,512
Colonial Bancgroup,
Incorporated 115,000 1,193,125
Commercial Federal Corporation 46,000 819,375
Community First Bankshares,
Incorporated 50,000 787,500
Dime Bancorp, Incorporated 50,200 759,275
Golden State Bancorp,
Incorporated * 50,000 862,500
Golden West Financial
Corporation 12,000 402,000
Greenpoint Financial
Corporation 65,000 1,547,812
Hibernia Corporation, Class A 62,000 658,750
KeyCorp 35,000 774,375
North Fork Bancorporation,
Incorporated 20,000 350,000
Pacific Century Financial
Corporation 20,000 373,750
People's Bank 63,800 1,347,775
Provident Bankshares
Corporation 63,500 1,099,344
Provident Financial Group,
Incorporated 12,000 430,500
Riggs National Corporation 127,200 1,677,450
Sovereign Bancorp,
Incorporated 145,000 1,080,703
Staten Island Bancorp,
Incorporated 23,300 419,400
Summit Bancorp 22,900 701,313
Washington Federal,
Incorporated 43,000 849,250
-----------
19,195,359
BUILDING MATERIALS & CONSTRUCTION - 1.16%
EMCOR Group, Incorporated * 47,000 857,750
NCI Building Systems,
Incorporated * 19,200 355,200
Nortek, Incorporated * 44,600 1,248,800
-----------
2,461,750
BUSINESS SERVICES - 0.15%
Jacobs Engineering Group,
Incorporated 10,000 325,000
-----------
CONSTRUCTION MATERIALS - 3.79%
Armstrong World Industries,
Incorporated 36,600 $ 1,221,525
Centex Construction
Products 46,000 1,794,000
Insituform Technologies,
Incorporated, Class A * 38,000 1,073,500
Lafarge Corporation 11,200 309,400
Owens-Corning 48,000 927,000
Sherwin-Williams Company 61,000 1,281,000
Southdown, Incorporated 10,000 516,250
USG Corporation 20,000 942,500
-----------
8,065,175
FINANCIAL SERVICES - 1.23%
Countrywide Credit
Industries, Incorporated 16,300 411,575
Federal Home Loan Mortgage
Corporation 10,100 475,331
First Republic Bank * 36,300 853,050
Peoples Heritage Financial
Group 24,000 361,500
Radian Group, Incorporated 10,800 515,700
---------
2,617,156
FOREST PRODUCTS - 1.00%
Johns Manville Corporation 80,000 1,120,000
Rayonier, Incorporated 21,000 1,014,563
---------
2,134,563
FURNITURE & FIXTURES - 1.06%
Ethan Allen Interiors,
Incorporated 14,000 448,875
Furniture Brands
International, Incorporated * 70,600 1,553,200
La-Z-Boy, Incorporated 15,000 252,188
---------
2,254,263
HOMEBUILDERS - 2.86%
Centex Corporation 32,000 790,000
D.R. Horton, Incorporated 33,700 465,481
Fairfield Communities,
Incorporated * 110,500 1,187,875
Kaufman & Broad Home
Corporation 22,800 551,475
Lennar Corporation 32,000 520,000
NVR, Incorporated * 16,000 764,000
Pulte Corporation 39,900 897,750
Ryland Group, Incorporated 40,000 922,500
---------
6,099,081
HOTELS & RESTAURANTS - 0.18%
Hilton Hotels Corporation 40,000 385,000
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
134
<PAGE> 177
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 -CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
HOUSEHOLD APPLIANCES - 1.87%
Maytag Corporation 25,000 $1,200,000
Shaw Industries, Incorporated 88,600 1,367,763
Toro Company 38,000 1,417,875
----------
3,985,638
INSURANCE - 1.31%
Fidelity National Financial
Corporation 90,000 1,293,750
Landamerica Financial Group,
Incorporated 60,000 1,102,500
PMI Group, Incorporated 8,000 390,500
----------
2,786,750
METAL & METAL PRODUCTS - 0.64%
Mueller Industry,
Incorporated * 37,800 1,370,250
----------
MOBILE HOMES - 0.19%
Fleetwood Enterprises,
Incorporated 20,000 412,500
----------
REAL ESTATE - 65.84%
Alexandria Real Estate
Equities 72,600 2,309,587
AMB Property Corporation 245,800 4,900,637
Apartment Investment &
Management Company, Class A 120,200 4,785,462
Archstone Communities Trust SBI 132,950 2,725,475
Arden Realty, Incorporated 55,000 1,103,438
Avalon Bay Communities,
Incorporated 70,527 2,419,958
Bedford Property Investments,
Incorporated 45,300 772,931
Boston Properties,
Incorporated 108,200 3,367,725
Bradley Real Estate,
Incorporated 50,000 871,875
Brandywine Realty Trust SBI 49,200 805,650
CarrAmerica Realty Corporation 102,500 2,165,313
CBL & Associates Properties,
Incorporated 45,100 930,188
CenterPoint Properties Trust 75,800 2,719,325
Chelsea GCA Realty,
Incorporated 25,800 767,550
Commercial Net Lease Realty,
Incorporated 103,000 1,023,563
Cornerstone Properties,
Incorporated 132,400 1,936,350
Cornerstone Realty Income
Trust, Incorporated 47,200 460,200
Cousins Properties,
Incorporated 20,000 678,750
Crescent Real Estate
Equities 118,570 $2,178,724
Duke Weeks Realty
Investments, Incorporated 404,150 7,880,925
Equity Office Properties Trust 457,180 11,258,057
Equity Residential Properties
Trust SBI 217,612 9,289,312
Essex Property Trust 131,000 4,454,000
First Industrial Realty
Trust, Incorporated 63,000 1,728,563
General Growth Properties,
Incorporated 104,400 2,923,200
Glenborough Realty Trust,
Incorporated 40,250 538,344
Hospitality Properties Trust SBI 21,000 400,313
Host Marriott Corporation 324,900 2,680,425
JDN Realty Corporation 58,850 948,956
Kilroy Realty Corporation 85,000 1,870,000
Kimco Realty Corporation 92,400 3,130,050
Koger Equity, Incorporated 24,300 410,063
Liberty Property Trust SBI 122,200 2,963,350
Mack-California Realty
Corporation 86,500 2,254,406
Meristar Hospitality
Corporation 10,300 164,800
Mills Corporation 52,829 944,318
Pacific Gulf Properties,
Incorporated 52,900 1,071,225
Parkway Properties,
Incorporated 155,700 4,486,106
Prologis Trust SBI 287,400 5,532,450
Public Storage, Incorporated 190,277 4,316,909
Reckson Associates Realty
Corporation 53,600 1,098,800
Rouse Company 75,400 1,602,250
Shurgard Storage Centers,
Incorporated, Class A 28,000 649,250
Simon Property Group,
Incorporated 161,360 3,701,195
Charles E Smith Residential 33,000 1,167,375
Spieker Properties,
Incorporated 116,000 4,226,750
Starwood Financial,
Incorporated 167,750 2,841,266
Summit Properties,
Incorporated 58,400 1,043,900
Sun Communities, Incorporated 65,620 2,112,144
Taubman Centers,
Incorporated, 103,600 1,113,700
The Macerich Company, 199,400 4,150,012
Trammell Crow Company * 93,000 1,081,125
Urban Shopping Centers,
Incorporated 163,850 4,444,431
Vornado Realty Trust 80,050 2,601,625
</TABLE>
The accompanying notes are an integral part of the financial statements.
135
<PAGE> 178
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 -CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
REAL ESTATE - CONTINUED
Washington Real Estate
Investment Trust SBI 21,000 $ 315,000
Weingarten Realty Investors SBI 47,500 1,849,531
------------
140,166,827
STEEL - 0.46%
Nucor Corporation 17,700 970,181
------------
TOTAL COMMON STOCKS
(Cost: $201,556,565) $193,229,493
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 7.09%
$15,100,586 Navigator Securities Lending Trust, $15,100,586
5.86% ------------
REPURCHASE AGREEMENTS - 2.15%
$4,572,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.95% to be
repurchased at $4,572,953 on
01/03/2000, collateralized by
$4,370,000 U.S. Treasury Notes,
7.875% due 11/15/2004 (valued at
$4,664,975, including interest). $4,572,000
------------
TOTAL INVESTMENTS (REAL ESTATE
SECURITIES TRUST) (Cost: $221,229,151) $212,902,079
============
</TABLE>
VALUE TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 89.87%
AEROSPACE - 1.34%
TRW, Incorporated 39,500 $ 2,051,531
-----------
AIR TRAVEL - 3.64%
AMR Corporation * 43,300 2,901,100
Delta Air Lines, Incorporated 53,300 2,655,006
-----------
5,556,106
APPAREL & TEXTILES - 3.76%
Liz Claiborne, Incorporated 77,700 2,923,463
V. F. Corporation 93,700 2,811,000
-----------
5,734,463
AUTO PARTS - 2.42%
Dana Corporation 52,900 1,583,694
Eaton Corporation 29,100 2,113,387
-----------
3,697,081
AUTOMOBILES - 6.51%
Ford Motor Company 72,200 $ 3,858,188
General Motors Corporation 83,500 6,069,406
-----------
9,927,594
BANKING - 9.94%
Bank America Corporation 31,300 1,570,869
Bank One Corporation 50,000 1,603,125
Chase Manhattan Corporation
58,300 4,529,181
First Union Corporation 25,820 847,219
FleetBoston Financial
Corporation 27,151 945,194
PNC Bank Corporation 56,200 2,500,900
Washington Mutual,
Incorporated 121,700 3,164,200
-----------
15,160,688
BUSINESS SERVICES - 2.47%
First Data Corporation 60,700 2,993,269
Office Depot, Incorporated * 70,800 774,375
-----------
3,767,644
CHEMICALS - 6.87%
Engelhard Corporation 112,200 2,117,775
FMC Corporation * 36,600 2,097,637
IMC Global, Incorporated 75,000 1,228,125
Lubrizol Corporation 89,000 2,747,875
Solutia, Incorporated 63,100 974,106
W. R. Grace & Company * 94,500 1,311,188
-----------
10,476,706
COMPUTERS & BUSINESS EQUIPMENT - 4.16%
International Business
Machines Corporation 13,700 1,479,600
Quantum Corporation * 271,600 4,107,950
Xerox Corporation 33,400 757,762
-----------
6,345,312
CONSTRUCTION MATERIALS - 2.12%
Owens-Corning 167,600 3,236,775
-----------
DOMESTIC OIL - 0.99%
Ultramar Diamond Shamrock 66,700 1,513,256
-----------
DRUGS & HEALTH CARE - 9.87%
Beckman Coulter,
Incorporated 34,400 1,750,100
Columbia/HCA Healthcare
Corporation 40,300 1,181,294
Health Management
Association, Class A * 61,000 815,875
HEALTHSOUTH Corporation * 855,500 4,598,312
Tenet Healthcare Corporation * 196,700 4,622,450
United Healthcare
Corporation 26,600 1,413,125
</TABLE>
The accompanying notes are an integral part of the financial statements.
136
<PAGE> 179
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 -CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
DRUGS & HEALTH CARE - CONTINUED
Wellpoint Health Networks,
Incorporated, Class A * 10,200 $ 672,563
-----------
15,053,719
ELECTRICAL EQUIPMENT - 0.80%
Cooper Industries,
Incorporated 30,100 1,217,169
-----------
ELECTRIC UTILITIES - 2.71%
DTE Energy Company 26,700 837,712
Duke Energy Company 10,939 548,317
Entergy Corporation 27,800 715,850
GPU, Incorporated 21,400 640,663
PECO Energy Company 17,400 604,650
Southern Company 33,500 787,250
-----------
4,134,442
ELECTRONICS - 2.36%
Arrow Electronics,
Incorporated * 63,000 1,598,625
Avnet, Incorporated 33,100 2,002,550
-----------
3,601,175
FINANCIAL SERVICES - 1.20%
ReliaStar Financial
Corporation 46,600 1,826,138
-----------
FOOD & BEVERAGES - 2.09%
IBP, Incorporated 39,200 705,600
Nabisco Group Holding
Corporation 99,800 1,060,375
Universal Foods Corporation 69,800 1,422,175
------------
3,188,150
FOREST PRODUCTS - 0.55%
Weyerhaeuser Company 11,600 833,025
------------
GAS & PIPELINE UTILITIES - 0.57%
Coastal Corporation 24,400 864,675
------------
HOUSEHOLD APPLIANCES - 1.88%
Whirlpool Corporation 44,000 2,862,750
------------
INDUSTRIAL MACHINERY - 5.09%
Cummins Engine, Incorporated 78,100 3,773,206
Parker-Hannifin Corporation 52,350 2,686,209
Tecumseh Products Company,
Class A 27,800 1,311,813
------------
7,771,228
INSURANCE - 6.55%
ACE, Ltd. 79,300 1,323,319
Aetna, Incorporated 26,400 1,473,450
Allstate Corporation 61,000 1,464,000
American General Corporation 14,600 $ 1,107,775
Everest Reinsurance Holdings 58,400 1,303,050
Foundation Health System,
Incorporated * 153,940 1,529,779
Hartford Financial Services
Group, Incorporated 37,900 1,795,512
------------
9,996,885
INTERNATIONAL OIL - 1.85%
Nabors Industries,
Incorporated * 91,000 2,815,313
------------
PAPER - 0.57%
International Paper Company 15,300 863,494
------------
PETROLEUM SERVICES - 1.02%
Tosco Corporation 20,900 568,219
Transocean Offshore,
Incorporated 29,400 990,412
------------
1,558,631
RAILROADS & EQUIPMENT - 0.41%
Burlington Northern Santa Fe
Corporation 26,000 630,500
------------
RETAIL TRADE - 0.73%
Toys R Us, Incorporated * 77,700 1,112,081
------------
SANITARY SERVICES - 0.63%
Waste Management,
Incorporated 55,900 960,781
------------
TELEPHONE - 4.49%
Bell Atlantic Corporation 40,800 2,511,750
GTE Corporation 25,100 1,771,119
U.S. West, Incorporated 35,600 2,563,200
------------
6,846,069
TRUCKING & FREIGHT - 2.28%
CNF Transportation,
Incorporated 37,600 1,297,200
Navistar International
Corporation * 26,200 1,241,225
Ryder Systems, Incorporated 38,300 935,956
------------
3,474,381
TOTAL COMMON STOCKS
(Cost: $143,699,268) $137,077,762
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
137
<PAGE> 180
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 4.04%
$6,159,600 Navigator Securities Lending Trust, $6,159,600
5.86% ----------
REPURCHASE AGREEMENTS - 6.09%
$9,285,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.50%, to be
repurchased at $ 9,286,934 on
01/03/2000, collateralized by
$6,845,000 U.S. Treasury Bonds,
12.00% due 08/15/2013 (valued at
$9,471,769, including interest). $9,285,000
----------
TOTAL INVESTMENTS (VALUE TRUST)
(Cost: $159,143,868) $152,522,362
============
</TABLE>
EQUITY INDEX TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 94.80%
AEROSPACE - 1.41%
Boeing Company 8,665 $ 360,139
Computer Sciences Corporation * 1,444 136,639
General Dynamics Corporation
1,820 96,005
Honeywell International,
Incorporated 7,250 418,234
Lockheed Martin Corporation 3,516 76,913
Northrop Grumman
Corporation 666 36,006
Rockwell International
Corporation 1,752 83,877
Textron, Incorporated 1,385 106,212
TRW, Incorporated 1,114 57,858
United Technologies
Corporation 4,446 288,990
----------
1,660,873
AGRICULTURE - 0.08%
Deere & Company 2,144 92,996
----------
AIR FREIGHT - 0.09%
FDX Corporation * 2,718 111,268
----------
AIR TRAVEL - 0.21%
AMR Corporation * 1,360 91,120
Delta Air Lines, Incorporated 1,318 65,653
Southwest Airlines Company 4,536 73,427
US Airways Group,
Incorporated * 662 21,225
----------
251,425
ALUMINUM - 0.34%
Alcan Aluminum, Ltd. 2,045 $ 84,228
Alcoa, Incorporated 3,280 272,240
Reynolds Metals Company 604 46,282
----------
402,750
APPAREL & TEXTILES - 0.17%
Liz Claiborne, Incorporated 587 22,086
NIKE, Incorporated, Class B 2,600 128,862
Reebok International, Ltd. * 534 4,372
Russell Corporation 252 4,221
Springs Industries,
Incorporated 182 7,269
V. F. Corporation 1,122 33,660
---------
200,470
AUTO PARTS - 0.23%
Dana Corporation 1,470 44,008
Danaher Corporation 1,300 62,725
Delphi Automotive Systems
Corporation 5,169 81,412
Eaton Corporation 613 44,519
Genuine Parts Company 1,547 38,385
---------
271,049
AUTOMOBILES - 0.88%
Ford Motor Company 10,884 581,614
General Motors Corporation 5,835 424,131
PACCAR, Incorporated 724 32,082
---------
1,037,827
BANKING - 4.58%
AmSouth Bancorporation 3,500 67,594
Bank America Corporation 15,597 782,774
Bank of New York, Incorporated
6,666 266,640
Bank One Corporation 10,601 339,895
BB&T Corporation 2,910 79,661
Chase Manhattan Corporation
7,562 587,473
Comerica, Incorporated 1,404 65,549
Fifth Third Bancorp 2,521 184,978
First Union Corporation 8,700 285,469
Firstar Corporation 8,909 188,203
FleetBoston Financial
Corporation 8,354 290,824
Golden West Financial
Corporation 1,614 54,069
Huntington Bancshares,
Incorporated 2,120 50,615
J. P. Morgan & Company,
Incorporated 1,550 196,269
KeyCorp 4,036 89,296
MBNA Corporation 7,327 199,661
Mellon Financial Corporation 4,642 158,118
</TABLE>
The accompanying notes are an integral part of the financial statements.
138
<PAGE> 181
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BANKING - CONTINUED
National City Corporation 5,608 $ 132,839
Northern Trust Corporation 2,092 110,876
Old Kent Financial Corporation
1,100 38,913
PNC Bank Corporation 2,693 119,838
Providian Financial
Corporation * 1,337 121,751
Republic New York Corporation
952 68,544
Southtrust Corporation 1,500 56,719
State Street Corporation 1,408 102,872
Summit Bancorp 1,528 46,795
SunTrust Banks, Incorporated
2,894 199,143
Synovus Financial Corporation
2,467 49,032
U.S. Bancorp 6,664 158,686
Union Planters Corporation 1,300 51,269
Wachovia Corporation 1,840 125,120
Washington Mutual,
Incorporated 5,239 136,214
----------
5,405,699
BROADCASTING - 1.61%
Cabletron Systems,
Incorporated * 1,562 40,612
CBS Corporation * 6,928 442,959
Clear Channel Communications * 3,066 273,641
Comcast Corporation, Class A 6,760 341,803
MediaOne Group, Incorporated * 5,427 416,861
Viacom, Incorporated, Class B * 6,248 377,613
----------
1,893,489
BUILDING MATERIALS & CONSTRUCTION - 0.07%
Fluor Corporation 644 29,543
Fortune Brands, Incorporated 1,515 50,090
----------
79,633
BUSINESS SERVICES - 3.83%
America Online, Incorporated * 20,000 1,508,750
Automatic Data Processing,
Incorporated 5,558 299,437
Cendant Corporation * 6,557 174,170
Deluxe Corporation 640 17,560
Dun & Bradstreet Corporation 1,411 41,624
Ecolab, Incorporated 1,238 48,437
First Data Corporation 3,857 190,198
H & R Block, Incorporated 836 36,575
Harcourt General, Incorporated 694 27,934
Humana, Incorporated * 1,484 12,150
Interpublic Group Companies,
Incorporated 2,562 147,795
ITT Industries, Incorporated 793 26,516
Newell Rubbermaid,
Incorporated 2,572 $ 74,588
Office Depot, Incorporated * 3,400 37,188
OmniCom Group, Incorporated
1,523 152,300
Paychex, Incorporated 2,200 88,000
R.R. Donnelley & Sons Company
1,200 29,775
Service Corporation
International 2,534 17,580
Tyco International, Ltd. 15,120 587,790
Yahoo, Incorporated * 2,300 995,181
---------
4,513,548
CHEMICALS - 1.42%
Air Products & Chemicals,
Incorporated 2,028 68,065
B.F. Goodrich Company 951 26,152
Dow Chemical Company 1,953 260,970
E.I. Du Pont De Nemours &
Company 9,449 622,453
Eastman Chemical Company 727 34,669
Engelhard Corporation 1,200 22,650
FMC Corporation * 250 14,328
Great Lakes Chemical
Corporation 548 20,927
Hercules, Incorporated 908 25,311
Monsanto Company 5,771 205,592
PPG Industries, Incorporated 1,545 96,659
Praxair, Incorporated 1,457 73,305
Rohm & Haas Company 2,016 82,026
Sigma-Aldrich Corporation 918 27,597
Union Carbide Corporation 1,234 82,369
W. R. Grace & Company * 607 8,422
---------
1,671,495
COMPUTERS & BUSINESS EQUIPMENT - 9.30%
3Com Corporation * 3,232 151,904
Apple Computer, Incorporated * 1,438 147,844
Ceridian Corporation * 1,336 28,808
Cisco Systems, Incorporated * 29,412 3,150,760
Citrix Systems, Incorporated * 900 110,700
Compaq Computer Corporation
15,370 415,951
Dell Computer Corporation * 23,112 1,178,712
EMC Corporation * 9,208 1,005,974
Gateway, Incorporated * 2,810 202,496
Hewlett-Packard Company 9,187 1,046,744
International Business
Machines Corporation 16,478 1,779,624
Network Appliance,
Incorporated * 1,400 116,288
Pitney Bowes, Incorporated 2,487 120,153
Seagate Technology,
Incorporated * 2,016 93,870
</TABLE>
The accompanying notes are an integral part of the financial statements.
139
<PAGE> 182
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMPUTERS & BUSINESS EQUIPMENT - CONTINUED
Sun Microsystems,
Incorporated * 14,192 $ 1,098,993
Tandy Corporation 1,776 87,357
Unisys Corporation * 2,732 87,253
Xerox Corporation 6,008 136,306
-----------
10,959,737
CONSTRUCTION MATERIALS - 0.16%
Armstrong World Industries,
Incorporated 369 12,315
Huttig Building Products,
Incorporated * 141 696
Masco Corporation 3,975 100,866
Owens-Corning * 522 10,081
Sherwin-Williams Company 1,518 31,878
Vulcan Materials Company 900 35,944
-----------
191,780
CONSTRUCTION & MINING EQUIPMENT - 0.21%
Caterpillar, Incorporated 3,252 153,047
Dover Corporation 1,929 87,528
Foster Wheeler Corporation 370 3,284
-----------
243,859
CONTAINERS & GLASS - 0.12%
Ball Corporation 226 8,899
Bemis, Incorporated 521 18,170
Crown Cork & Seal,
Incorporated 1,130 25,284
Owens-Illinois, 1,376 34,486
Incorporated
Pactiv Corporation * 1,509 16,033
Temple-Inland, Incorporated 533 35,144
-----------
138,016
COSMETICS & TOILETRIES - 0.11%
Alberto Culver Company, Class B 532 13,732
Avon Products, Incorporated 2,398 79,134
International Flavors &
Fragrances, Incorporated 952 35,938
-----------
128,804
CRUDE PETROLEUM & NATURAL GAS - 0.14%
Burlington Resources,
Incorporated 1,536 50,784
Occidental Petroleum
Corporation 3,204 69,286
Sunoco, Incorporated 831 19,529
Union Pacific Resources
Group, Incorporated 2,252 28,713
-----------
168,312
DOMESTIC OIL - 2.61%
Amerada Hess Corporation 783 44,435
Anadarko Petroleum Corporation 1,204 41,086
Ashland, Incorporated 613 20,191
DOMESTIC OIL - CONTINUED
Conoco, Incorporated, Class B 5,700 $ 141,787
Exxon Mobil Corporation 31,419 2,531,193
Kerr-McGee Corporation 735 45,570
Phillips Petroleum Company 2,290 107,630
Unocal Corporation 2,124 71,287
USX-Marathon Group 2,801 69,150
-----------
3,072,329
DRUGS & HEALTH CARE - 8.64%
Abbott Laboratories 13,818 501,766
Allergan, Incorporated 1,142 56,815
ALZA Corporation * 856 29,639
American Home Products Corporation 11,905 469,503
Amgen, Incorporated * 9,352 561,704
Bausch & Lomb, Incorporated 531 36,340
Baxter International, Incorporated 2,668 167,584
Becton Dickinson & Company 2,219 59,358
Biomet, Incorporated 1,064 42,560
Bristol-Myers Squibb Company 17,996 1,155,118
C.R. Bard, Incorporated 537 28,461
Cardinal Health, Incorporated 2,476 118,539
Columbia/HCA Healthcare Corporation 5,131 150,402
Eli Lilly & Company 9,911 659,081
Guidant Corporation 2,738 128,686
HEALTHSOUTH Corporation * 3,786 20,350
IMS Health, Incorporated 2,782 75,636
Johnson & Johnson 12,157 1,132,121
Mallinckrodt, Incorporated 605 19,247
Manor Care, Incorporated * 924 14,784
McKesson HBOC, Incorporated 2,521 56,880
Medtronic, Incorporated 10,626 387,185
Merck & Company, Incorporated 21,302 1,428,565
PE Corp-PE Biosystems Group 880 105,875
Pfizer, Incorporated 35,179 1,141,119
Pharmacia & Upjohn, Incorporated 4,613 207,585
Schering-Plough Corporation 13,298 561,009
St. Jude Medical, Incorporated * 771 23,660
Tenet Healthcare Corporation * 2,764 64,954
United Healthcare Corporation 1,488 79,050
Warner-Lambert Company 7,798 638,949
Watson Pharmaceuticals,
Incorporated * 800 28,650
Wellpoint Health Networks,
Incorporated, Class A * 600 39,563
-----------
10,190,738
</TABLE>
The accompanying notes are an integral part of the financial statements.
140
<PAGE> 183
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
ELECTRICAL EQUIPMENT - 4.57%
Cooper Industries,
Incorporated 794 $ 32,107
Emerson Electric Company 3,944 226,287
General Electric Company 29,804 4,612,169
Johnson Controls, Incorporated
749 42,599
KLA-Tencor Corporation * 816 90,882
Millipore Corporation 482 18,617
Molex, Incorporated 1,400 79,363
National Service Industries,
Incorporated 382 11,269
Solectron Corporation * 2,500 237,813
W.W. Grainger, Incorporated 818 39,111
----------
5,390,217
ELECTRIC UTILITIES - 1.54%
AES Corporation * 1,900 142,025
Ameren Corporation 1,271 41,625
American Electric Power,
Incorporated 1,788 57,440
Carolina Power & Light Company
1,429 43,495
Central & South West
Corporation 1,983 39,660
CINergy Corporation 1,457 35,150
CMS Energy Corporation 1,100 34,306
Consolidated Edison,
Incorporated 1,976 68,172
Constellation Energy Group,
Incorporated 1,315 38,135
Dominion Resources,
Incorporated 1,784 70,022
DTE Energy Company 1,304 40,913
Duke Energy Company 3,298 165,312
Edison International 3,216 84,219
Entergy Corporation 2,205 56,779
FirstEnergy Corporation 2,141 48,574
Florida Progress Corporation 900 38,081
FPI Group, Incorporated 1,557 66,659
GPU, Incorporated 1,212 36,284
New Century Energies,
Incorporated 1,100 33,413
Niagara Mohawk Holdings,
Incorporated * 1,757 24,488
Northern States Power Company
Minnesota 1,403 27,359
PECO Energy Company 1,726 59,979
PG&E Corporation 3,502 71,791
Pinnacle West Capital
Corporation 800 24,450
PP&L Resources, Incorporated 1,368 31,293
Public Service Enterprise
Group, Incorporated 1,966 68,441
ELECTRIC UTILITIES - CONTINUED
Reliant Energy, Incorporate 2,685 $ 61,419
Southern Company 6,161 144,784
Texas Utilities Company 2,551 90,720
Unicom Corporation 2,000 67,000
----------
1,811,988
ELECTRONICS - 6.86%
Adaptec, Incorporated * 900 44,887
Advanced Micro Devices,
Incorporated * 1,289 37,300
Analog Devices, Incorporated * 1,500 139,500
Applied Materials, Incorporated * 3,415 432,638
Boston Scientific Corporation * 3,820 83,562
Electronic Data Systems
Corporation 4,547 304,365
General Instrument Corporation * 1,516 128,860
Intel Corporation 30,026 2,471,515
Lexmark International Group,
Incorporated, Class A * 1,200 108,600
LSI Logic Corporation * 1,288 86,940
Lucent Technologies,
Incorporated 27,852 2,083,678
Micron Technology,
Incorporated * 2,279 177,192
Motorola, Incorporated 5,479 806,783
National Semiconductor
Corporation * 1,542 66,017
PerkinElmer, Incorporated 491 20,469
Raytheon Company, Class B 3,118 82,822
Scientific-Atlanta,
Incorporated 725 40,328
Silicon Graphics,
Incorporated * 1,751 17,182
TekTronix, Incorporated 508 19,749
Teradyne, Incorporated * 1,600 105,600
Texas Instruments,
Incorporated 7,104 688,200
Thomas & Betts Corporation 530 16,894
Xilinx, Incorporated * 2,800 127,312
----------
8,090,393
FINANCIAL SERVICES - 5.11%
American Express Company 4,041 671,816
Association First Capital
Corporation, Class A 6,574 180,374
Bear Stearns Companies,
Incorporated 1,181 50,488
Capital One Financial
Corporation 1,811 87,268
Charles Schwab Corporation 7,400 283,975
Citigroup, Incorporated 30,614 1,700,990
Countrywide Credit
Industries, Incorporated 1,047 26,437
</TABLE>
The accompanying notes are an integral part of the financial statements.
141
<PAGE> 184
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
FINANCIAL SERVICES - CONTINUED
Federal Home Loan Mortgage
Corporation 6,270 $ 295,082
Federal National Mortgage
Association 9,283 579,607
Franklin Resources,
Incorporated 2,233 71,596
Household International,
Incorporated 4,331 161,330
Lehman Brothers Holdings,
Incorporated 1,155 97,814
Merrill Lynch & Company,
Incorporated 3,301 275,633
Morgan Stanley Dean Witter &
Company 5,217 744,727
Paine Webber Group,
Incorporated 1,300 50,456
Regions Financial Corporation 1,981 49,773
SLM Holding Corporation 1,420 59,995
T. Rowe Price & Associates,
Incorporated 1,100 40,631
Wells Fargo & Company 14,876 601,548
----------
6,029,540
FOOD & BEVERAGES - 3.05%
Archer-Daniels-Midland Company 5,524 67,324
Bestfoods 2,596 136,452
Campbell Soup Company 3,907 151,152
Coca-Cola Enterprises,
Incorporated 3,900 78,488
ConAgra, Incorporated 4,495 101,418
General Mills, Incorporated 2,720 97,240
H.J. Heinz Company 3,224 128,355
Hershey Foods Corporation 1,311 62,273
Kellogg Company 3,713 114,407
Nabisco Group Holding
Corporation 2,927 31,099
PepsiCo, Incorporated 13,295 468,649
Quaker Oats Company 1,268 83,213
Ralston Purina Company 2,919 81,367
Sara Lee Corporation 8,162 180,074
Supervalu, Incorporated 1,301 26,020
Sysco Corporation 2,936 116,156
The Coca-Cola Company 22,397 1,304,625
Unilever NV 5,184 282,204
Wm. Wrigley Jr. Company 1,084 89,904
----------
3,600,420
FOREST PRODUCTS - 0.19%
Georgia-Pacific Corporation 1,568 79,576
Louisiana Pacific Corporation 955 13,609
Weyerhaeuser Company 1,828 131,273
--------
224,458
FURNITURE & FIXTURES - 0.03%
Leggett & Platt, Incorporated 1,800 $ 38,587
--------
GAS & PIPELINE UTILITIES - 0.62%
Coastal Corporation 1,983 70,273
Columbia Energy Group 697 44,085
Consolidated Natural Gas
Company * 797 51,755
Eastern Enterprises 185 10,626
El Paso Energy Corporation 2,090 81,118
Enron Corporation 6,506 288,704
NICOR, Incorporated 501 16,282
ONEOK, Incorporated 224 5,628
Peoples Energy Corporation 247 8,275
Sempra Energy 2,122 36,870
Williams Companies,
Incorporated 3,960 121,027
--------
734,643
GOLD - 0.15%
Barrick Gold Corporation 3,551 62,808
Freeport McMoran Copper & Gold,
Incorporated, Class B * 1,504 31,772
Homestake Mining Company 2,396 18,719
Newmont Mining Corporation 1,450 35,525
Placer Dome, Incorporated 2,911 31,293
--------
180,117
HOMEBUILDERS - 0.03%
Centex Corporation 542 13,381
Kaufman & Broad Home
Corporation 462 11,175
Pulte Corporation 477 10,732
--------
35,288
HOTELS & RESTAURANTS - 0.61%
Darden Restaurants,
Incorporated 1,218 22,076
Hilton Hotels Corporation 2,236 21,522
Marriott International,
Incorporated, Class A 2,253 71,110
McDonalds Corporation 12,222 492,699
Mirage Resorts, Incorporated * 1,855 28,405
Tricon Global Restaurants,
Incorporated * 1,400 54,075
Wendy's International,
Incorporated 1,141 23,533
--------
713,420
HOUSEHOLD APPLIANCES - 0.31%
Corning, Incorporated 2,159 278,376
Maytag Corporation 799 38,352
Whirlpool Corporation 712 46,325
--------
363,053
</TABLE>
The accompanying notes are an integral part of the financial statements.
142
<PAGE> 185
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
HOUSEHOLD PRODUCTS - 1.92%
Black & Decker Corporation 790 $ 41,277
Clorox Company 2,162 108,911
Colgate-Palmolive Company 5,260 341,900
Gillette Company 9,854 405,862
Procter & Gamble Company 12,013 1,316,174
Snap-On, Incorporated 652 17,319
Stanley Works 770 23,196
Tupperware Corporation 551 9,333
----------
2,263,972
INDUSTRIAL MACHINERY - 0.20%
Briggs & Stratton Corporation 204 10,939
Crane Company 635 12,621
Cummins Engine, Incorporated 460 22,224
Ingersoll-Rand Company 1,484 81,713
NACCO Industries,
Incorporated, Class A 34 1,889
Pall Corporation 1,124 24,236
Parker-Hannifin Corporation 963 49,414
Thermo Electron Corporation * 1,446 21,690
Timken Company 560 11,445
----------
236,171
INSURANCE - 2.86%
Aetna, Incorporated 1,318 73,561
AFLAC, Incorporated 2,400 113,250
Allstate Corporation 7,285 174,840
American General Corporation 2,228 169,049
American International Group,
Incorporated 14,001 1,513,858
Aon Corporation 2,294 91,760
Chubb Corporation 1,513 85,201
CIGNA Corporation 1,809 145,738
Cincinnati Financial
Corporation 1,520 47,405
Conseco, Incorporated 2,875 51,391
Equifax, Incorporated 1,323 31,173
Hartford Financial Services
Group, Incorporated 2,077 98,398
Jefferson-Pilot Corporation 892 60,879
Lincoln National Corporation 1,850 74,000
Loews Corporation 879 53,344
Marsh & McLennan Companies,
Incorporated 2,448 234,243
MBIA, Incorporated 879 46,422
MGIC Investment Corporation 980 58,984
Progressive Corporation 683 49,944
SAFECO Corporation 1,261 31,367
St. Paul Companies,
Incorporated 2,022 68,116
Torchmark, Incorporated 1,179 34,265
UnumProvident Corporation 2,093 67,107
----------
3,374,295
INTERNATIONAL OIL - 2.01%
Atlantic Richfield Company 2,837 $ 245,400
Chevron Corporation 5,921 512,907
Halliburton Company 3,998 160,920
Royal Dutch Petroleum Company, GDR 19,420 1,173,696
Texaco, Incorporated 5,030 273,192
----------
2,366,115
INVESTMENT COMPANIES - 0.50%
SPDR Trust, Series 1 3,990 586,031
----------
LEISURE TIME - 0.91%
Brunswick Corporation 812 18,067
Carnival Corporation, Class A 5,500 262,969
Harrahs Entertainment,
Incorporated * 1,223 32,333
Hasbro, Incorporated 1,804 34,389
Seagram, Ltd. 3,910 175,705
The Walt Disney Company 18,656 545,688
----------
1,069,151
LIQUOR - 0.29%
Adolph Coors Company, Class B
254 13,335
Anheuser-Busch Companies,
Incorporated 4,240 300,510
Brown Forman Corporation, Class B 586 33,548
----------
347,393
METAL & METAL PRODUCTS - 0.04%
Inco, Ltd.* 1,792 42,112
----------
MINING - 0.05%
Phelps Dodge Corporation 893 59,943
----------
MOBILE HOMES - 0.00%
Fleetwood Enterprises,
Incorporated 247 5,094
----------
NEWSPAPERS - 0.42%
Dow Jones & Company,
Incorporated 795 54,060
Gannett, Incorporated 2,580 210,431
Knight-Ridder, Incorporated 759 45,161
New York Times Company, Class A 1,493 73,344
Tribune Company 2,118 116,622
----------
499,618
OFFICE FURNISHINGS & SUPPLIES - 0.07%
Avery Dennison Corporation 1,048 76,373
Ikon Office Solutions,
Incorporated 1,355 9,231
----------
85,604
</TABLE>
The accompanying notes are an integral part of the financial statements.
143
<PAGE> 186
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
PAPER - 0.99%
Boise Cascade Corporation 521 $ 21,100
Champion International
Corporation 798 49,426
Fort James Corporation 1,961 53,682
International Paper Company 3,786 213,672
Kimberly-Clark Corporation 4,808 313,722
Mead Corporation 934 40,571
Minnesota Mining &
Manufacturing Company 3,615 353,818
Potlatch Corporation 220 9,818
Sealed Air Corporation * 773 40,051
Westvaco Corporation 824 26,883
Willamette Industries,
Incorporated 1,062 49,317
----------
1,172,060
PETROLEUM SERVICES - 0.41%
Apache Corporation 1,040 38,415
Baker Hughes, Incorporated 2,975 62,661
Helmerich & Payne,
Incorporated 508 11,081
McDermott International,
Incorporated 535 4,848
Rowan Companies, Incorporated* 757 16,417
Schlumberger, Ltd. 4,922 276,862
Tosco Corporation 1,400 38,063
Transocean Sedco Forex,
Incorporated 953 32,101
----------
480,448
PHOTOGRAPHY - 0.17%
Eastman Kodak Company 2,856 189,210
Polaroid Corporation 487 9,162
----------
198,372
PLASTICS - 0.13%
Illinois Tool Works,
Incorporated 2,239 151,272
Milacron, Incorporated 266 4,090
----------
155,362
PUBLISHING - 0.89%
American Greetings
Corporation, Class A 607 14,340
Jostens, Incorporated 259 6,297
McGraw-Hill Companies,
Incorporated 1,828 112,651
Meredith Corporation 521 21,719
Time Warner, Incorporated 11,760 851,865
Times Mirror Company, Series A 586 39,262
----------
1,046,134
RAILROADS & EQUIPMENT - 0.28%
Burlington Northern Santa Fe
Corporation 4,142 $ 100,443
CSX Corporation 2,006 62,938
Norfolk Southern Corporation 3,471 71,156
Union Pacific Corporation 2,228 97,197
----------
331,734
RETAIL GROCERY - 0.40%
Albertsons, Incorporated 3,875 124,969
Kroger Company * 7,524 142,015
Safeway, Incorporated * 4,600 163,587
The Great Atlantic & Pacific
Tea Company, Incorporated 359 10,007
Winn-Dixie Stores,
Incorporated 1,319 31,574
----------
472,152
RETAIL TRADE - 5.75%
AutoZone, Incorporated * 1,331 43,008
Bed Bath & Beyond,
Incorporated * 1,300 45,175
Best Buy Company,
Incorporated * 1,900 95,356
Circuit City Stores,
Incorporated 1,820 82,014
Consolidated Stores
Corporation * 1,044 16,965
Costco Wholesale
Corporation 1,988 181,405
CVS Corporation 3,474 138,743
Dayton Hudson Corporation 4,013 294,705
Dillards, Incorporated, Class A 967 19,521
Dollar General Corporation 2,016 45,864
Federated Department Stores,
Incorporated * 1,871 94,602
GAP, Incorporated 7,841 360,686
Home Depot, Incorporated 20,072 1,376,152
J. C. Penney, Incorporated 2,438 48,608
Kmart Corporation * 4,529 45,573
Kohls Corporation * 1,408 101,640
Longs Drug Stores
Corporation 362 9,344
Lowe's Companies, Incorporated 3,450 206,137
May Department Stores,
Incorporated 3,059 98,653
Nordstrom, Incorporated 1,242 32,525
Pep Boys-Manny, Moe & Jack
460 4,198
Rite Aid Corporation 2,338 26,156
Sears Roebuck & Company 3,431 104,431
Staples, Incorporated * 4,150 86,113
</TABLE>
The accompanying notes are an integral part of the financial statements.
144
<PAGE> 187
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RETAIL TRADE - CONTINUED
The Limited, Incorporated 1,909 $ 82,684
TJX Companies, Incorporated 2,821 57,654
Toys R Us, Incorporated * 2,175 31,130
Wal-Mart Stores, Incorporated 40,268 2,783,525
Walgreen Company 9,112 266,526
----------
6,779,093
SANITARY SERVICES - 0.10%
Allied Waste Industries,
Incorporated * 1,800 15,862
Waste Management,
Incorporated 5,620 96,594
----------
112,456
SOFTWARE - 6.65%
Adobe Systems, Incorporated 1,186 79,759
Autodesk, Incorporated 599 20,216
BMC Software, Incorporated * 2,100 167,869
Computer Associates
International, Incorporated 4,890 341,994
Compuware Corporation * 3,300 122,925
Microsoft Corporation * 46,220 5,396,185
Novell, Incorporated * 3,055 122,009
Oracle Systems Corporation * 13,102 1,468,243
Parametric Technology
Corporation * 2,484 67,223
PeopleSoft, Incorporated * 2,200 46,888
Shared Medical Systems
Corporation 205 10,442
----------
7,843,753
STEEL - 0.09%
Allegheny Technologies,
Incorporated 880 19,745
Bethleham Steel Corporation 1,190 9,966
Nucor Corporation 766 41,987
USX-United States Steel
Group 760 25,080
Worthington Industries,
Incorporated 802 13,283
----------
110,061
TELECOMMUNICATIONS SERVICES - 2.53%
ADC Telecommunications,
Incorporated * 1,400 101,588
Andrew Corporation * 771 14,601
Comverse Technology,
Incorporated * 600 86,850
Global Crossing, Ltd. * 6,948 347,400
Nortel Networks Corporation 12,038 $ 1,215,838
QUALCOMM, Incorporated * 5,600 986,300
Tellabs, Incorporated * 3,538 227,095
------------
2,979,672
TELEPHONE - 7.21%
Alltel Corporation 2,791 230,781
American Telephone &
Telegraph Corporation 28,901 1,466,726
Bell Atlantic Corporation 14,060 865,569
BellSouth Corporation 17,132 801,992
CenturyTel, Incorporated 1,300 61,588
GTE Corporation 8,886 627,018
MCI WorldCom, Incorporated * 25,418 1,348,716
Nextel Communications,
Incorporated, Class A * 3,075 317,109
SBC Communications,
Incorporated 30,895 1,506,131
Sprint Corporation (FON Group) 7,880 530,422
Sprint Corporation (PCS
Group), Series 1* 3,995 409,488
U. S. West, Incorporated 4,591 330,552
------------
8,496,092
TIRES & RUBBER - 0.04%
Cooper Tire & Rubber
Company 726 11,298
Goodyear Tire & Rubber
Company 1,450 40,872
------------
52,170
TOBACCO - 0.46%
Philip Morris Companies,
Incorporated 21,601 500,873
UST, Incorporated 1,567 39,469
------------
540,342
TOYS, AMUSEMENTS & SPORTING GOODS - 0.04%
Mattel, Incorporated 3,813 50,046
------------
TRUCKING & FREIGHT - 0.11%
Kansas City Southern
Industries, Incorporated 1,100 82,087
Navistar International
Corporation * 596 28,236
Ryder Systems, Incorporated 615 15,029
------------
125,352
TOTAL COMMON STOCKS
(Cost: $87,546,659) $111,779,019
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
145
<PAGE> 188
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 3.58%
$3,207,855 Navigator Securities Lending
Trust, $ 3,207,855
5.86%
U.S. Treasury Bills
775,000 zero coupon due 02/10/2000 **** 770,861
200,000 zero coupon due 02/24/2000 **** 198,538
50,000 zero coupon due 04/27/2000 **** 49,163
------------
$ 4,226,417
REPURCHASE AGREEMENTS - 1.62%
$1,909,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.95%, to be
repurchased at $1,909,469 on
01/03/2000, collateralized by
$1,910,000 U.S. Treasury Notes,
6.25% due 02/28/2002 (valued at
$1,948,200, including interest) $ 1,909,000
------------
TOTAL INVESTMENTS (EQUITY INDEX TRUST)
(Cost: $93,681,922) $117,914,436
============
</TABLE>
GROWTH & INCOME TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 97.35%
AEROSPACE - 2.30%
Computer Sciences Corporation * 357,900 $ 33,866,288
Honeywell International,
Incorporated 381,200 21,990,475
United Technologies
Corporation 290,000 18,850,000
------------
74,706,763
AGRICULTURE - 0.32%
Monsanto Company 318,500 10,550,313
------------
AIR TRAVEL - 1.07%
AMR Corporation 517,300 34,659,100
------------
ALUMINUM - 1.07%
Alcoa, Incorporated 417,900 34,685,700
------------
AUTOMOBILES - 1.19%
Ford Motor Company 308,300 16,474,781
General Motors Corporation, Class H * 230,000 22,080,000
------------
38,554,781
BANKING - 2.92%
Chase Manhattan Corporation 225,600 17,526,300
First Union Corporation 606,600 19,904,062
U.S. Bancorp 1,145,100 $ 27,267,694
Wachovia Corporation 445,400 30,287,200
------------
94,985,256
BROADCASTING - 0.85%
American Telephone & Telegraph
Corporation-Liberty Media
Group, Class A 485,700 27,563,475
------------
BUSINESS SERVICES - 4.02%
America Online, Incorporated* 430,700 32,490,931
Automatic Data Processing,
Incorporated 580,000 31,247,500
First Data Corporation 721,300 35,569,106
Tyco International, Ltd. 808,400 31,426,550
------------
130,734,087
CHEMICALS - 2.06%
Dow Chemical Company 117,300 15,674,213
E.I. Du Pont De Nemours &
Company 668,500 44,037,437
Monsanto Company 200,000 7,125,000
-----------
66,836,650
COMPUTERS & BUSINESS EQUIPMENT - 7.32%
Cisco Systems, Incorporated* 895,700 95,951,862
EMC Corporation * 264,000 28,842,000
Hewlett-Packard Company 281,800 32,107,587
International Business
Machines Corporation 563,400 60,847,200
Xerox Corporation 881,400 19,996,763
-----------
237,745,412
CONSTRUCTION & MINING EQUIPMENT - 0.74%
Caterpillar, Incorporated 508,800 23,945,400
-----------
DOMESTIC OIL - 2.80%
Exxon Mobil Corporation 974,600 78,516,212
Unocal Corporation 370,000 12,418,125
-----------
90,934,337
DRUGS & HEALTH CARE - 10.12%
Abbott Laboratories 640,000 23,240,000
American Home Products
Corporation 1,008,700 39,780,606
AstraZeneca PLC, ADR 399,900 16,695,825
Baxter International,
Incorporated 548,100 34,427,531
Bristol-Myers Squibb Company 419,800 26,945,913
Cardinal Health, Incorporated 357,600 17,120,100
Columbia/HCA Healthcare
Corporation 993,900 29,133,694
Johnson & Johnson 361,400 33,655,375
</TABLE>
The accompanying notes are an integral part of the financial statements.
146
<PAGE> 189
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
DRUGS & HEALTH CARE - CONTINUED
Merck & Company, Incorporated 532,200 $ 35,690,663
Pharmacia & Upjohn,
Incorporated 670,100 30,154,500
Warner-Lambert Company 513,800 42,099,487
------------
328,943,694
ELECTRICAL EQUIPMENT - 4.04%
General Electric Company 848,200 131,258,950
------------
ELECTRIC UTILITIES - 1.71%
Duke Energy Company 595,600 29,854,450
Pinnacle West Capital
Corporation 353,200 10,794,675
Unicom Corporation 447,100 14,977,850
------------
55,626,975
ELECTRONICS - 9.32%
Analog Devices, Incorporated 475,700 44,240,100
Intel Corporation * 815,900 67,158,769
Lucent Technologies,
Incorporated 1,027,300 76,854,881
Micron Technology,
Incorporated * 306,100 23,799,275
Motorola, Incorporated 403,600 59,430,100
Texas Instruments,
Incorporated 324,900 31,474,687
------------
302,957,812
FINANCIAL SERVICES - 5.84%
Association First Capital
Corporation, Class A 1,329,400 36,475,412
Citigroup, Incorporated 1,495,925 83,117,333
Federal National Mortgage
Association 521,000 32,529,938
Merrill Lynch & Company,
Incorporated 451,600 37,708,600
------------
189,831,283
FOOD & BEVERAGES - 0.63%
PepsiCo, Incorporated 578,500 20,392,125
------------
GAS & PIPELINE UTILITIES - 0.19%
National Fuel Gas Company 135,300 6,291,450
------------
HOTELS & RESTAURANTS - 1.26%
McDonalds Corporation 1,018,800 41,070,375
------------
HOUSEHOLD APPLIANCES - 0.89%
Corning, Incorporated 223,200 28,778,850
------------
HOUSEHOLD PRODUCTS - 2.51%
Colgate-Palmolive Company 300,000 19,500,000
Gillette Company 274,500 11,305,969
Procter & Gamble Company 463,700 50,804,131
------------
81,610,100
INSURANCE - 4.11%
ACE, Ltd. 685,900 $ 11,445,956
American International Group,
Incorporated 454,250 49,115,781
Hartford Financial Services
Group, Incorporated 261,100 12,369,613
Marsh & McLennan Companies,
Incorporated 634,100 60,675,444
------------
133,606,794
INTERNATIONAL OIL - 2.45%
Chevron Corporation 406,200 35,187,075
Royal Dutch Petroleum
Company, GDR 732,700 44,282,556
------------
79,469,631
LEISURE TIME - 0.76%
The Walt Disney Company 839,900 24,567,075
------------
LIQUOR - 0.89%
Anheuser-Busch Companies,
Incorporated 406,300 28,796,513
------------
NEWSPAPERS - 1.42%
Gannett, Incorporated 567,300 46,270,406
------------
PAPER - 2.80%
International Paper Company 666,800 37,632,525
Kimberly-Clark Corporation 500,400 32,651,100
Minnesota Mining &
Manufacturing Company 211,000 20,651,625
------------
90,935,250
PETROLEUM SERVICES - 1.17%
Schlumberger, Ltd. 606,500 34,115,625
Transocean Offshore,
Incorporated 117,418 3,955,532
------------
38,071,157
PLASTICS - 0.52%
Illinois Tool Works,
Incorporated 249,100 16,829,819
------------
PUBLISHING - 0.46%
Time Warner, Incorporated 204,600 14,820,713
------------
RAILROADS & EQUIPMENT - 0.26%
CSX Corporation 264,700 8,304,963
------------
RETAIL TRADE - 4.75%
Dayton Hudson Corporation 728,300 53,484,531
May Department Stores,
Incorporated 427,350 13,782,038
Wal-Mart Stores, Incorporated 1,260,000 87,097,500
------------
154,364,069
</TABLE>
The accompanying notes are an integral part of the financial statements.
147
<PAGE> 190
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
SOFTWARE - 5.85%
Microsoft Corporation * 1,288,900 $ 150,479,075
Oracle Systems Corporation * 354,100 39,681,331
--------------
190,160,406
TELECOMMUNICATIONS SERVICES - 0.21%
Nokia Corporaton, ADR 36,800 6,992,000
--------------
TELEPHONE - 7.92%
American Telephone &
Telegraph Corporation * 1,012,500 51,384,375
Bell Atlantic Corporation 975,298 60,041,783
MCI WorldCom, Incorporated* 1,124,850 59,687,353
SBC Communications,
Incorporated 1,103,000 53,771,250
Sprint Corporation (PCS
Group), Series 1 * 315,900 32,379,750
--------------
257,264,511
TOBACCO - 0.61%
Philip Morris Companies,
Incorporated 850,000 19,709,375
--------------
TOTAL COMMON STOCKS
(Cost: $2,058,780,134) $3,162,825,570
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 1.96%
$63,760,918 Navigator Securities Lending Trust, $63,760,918
5.86% --------------
REPURCHASE AGREEMENTS - 0.69%
$22,357,000 Repurchase Agreement with Lehman
Brothers dated 12/31/1999 at
2.50%, to be repurchased at
$22,361,658 on 01/03/2000,
collateralized by $23,680,000
U.S. Treasury Strip, 5.79% due
06/30/2000 (valued at
$23,027,710, including interest.) $22,357,000
--------------
TOTAL INVESTMENTS (GROWTH & INCOME TRUST)
(Cost: $2,144,898,052) $3,248,943,488
==============
</TABLE>
U.S. LARGE CAP VALUE TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 95.27%
AEROSPACE - 2.27%
Lockheed Martin Corporation 32,800 $ 717,500
Raytheon Company, Class B 25,000 664,062
United Technologies
Corporation 53,500 $3,477,500
----------
4,859,062
AIR TRAVEL - 0.91%
Galileo International,
Incorporated 65,000 1,945,938
----------
ALUMINUM - 0.30%
Alcoa, Incorporated 7,800 647,400
----------
APPAREL & TEXTILES - 2.04%
NIKE, Incorporated, Class B 41,500 2,056,844
Tommy Hilfiger Corporation * 73,700 1,718,131
V. F. Corporation 19,900 597,000
----------
4,371,975
AUTO PARTS - 0.38%
Federal Mogul Corporation 41,000 825,125
----------
AUTO SERVICES - 0.75%
AutoNation, Incorporated * 175,000 1,618,750
----------
BANKING - 4.04%
Bank America Corporation 70,900 3,558,294
Bank One Corporation 99,200 3,180,600
Washington Mutual,
Incorporated 74,000 1,924,000
----------
8,662,894
BROADCASTING - 8.06%
Adelphia Communications
Corporation, Class A * 30,000 1,968,750
American Telephone & Telegraph
Corporation-Liberty Media
Group, Class A 90,000 5,107,500
Cablevision Systems
Corporation, Class A * 50,000 3,775,000
Charter Communications,
Incorporated, Class A * 19,000 415,625
Fox Entertainment Group,
Incorporated, Class A * 125,300 3,124,669
Viacom, Incorporated, Class A * 23,000 1,390,063
Viacom, Incorporated, Class B * 25,000 1,510,937
----------
17,292,544
BUSINESS SERVICES - 6.53%
Ecolab, Incorporated 76,200 2,981,325
Interpublic Group Companies,
Incorporated 37,000 2,134,438
Quintiles Transnational
Corporation * 76,000 1,420,250
Service Corporation
International 118,500 822,094
Tyco International, Ltd. 98,300 3,821,412
</TABLE>
The accompanying notes are an integral part of the financial statements.
148
<PAGE> 191
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BUSINESS SERVICES - CONTINUED
United Parcel Service,
Incorporated, Class B 4,800 $ 331,200
Young & Rubicam, Incorporated
35,300 2,497,475
-----------
14,008,194
COMPUTERS & BUSINESS EQUIPMENT - 6.05%
Cisco Systems, Incorporated * 9,000 964,125
Compaq Computer Corporation 115,300 3,120,306
Dell Computer Corporation * 44,500 2,269,500
Hewlett-Packard Company 25,200 2,871,225
International Business
Machines Corporation 29,000 3,132,000
Xerox Corporation 27,300 619,369
-----------
12,976,525
CONSTRUCTION MATERIALS - 0.37%
Black & Decker Corporation 15,000 783,750
-----------
CONSTRUCTION & MINING EQUIPMENT - 0.46%
Dover Corporation 21,900 993,713
-----------
COSMETICS & TOILETRIES - 0.46%
Avon Products, Incorporated 30,000 990,000
-----------
DOMESTIC OIL - 1.62%
Exxon Mobil Corporation 43,200 3,480,300
-----------
DRUGS & HEALTH CARE - 10.91%
Astrazeneca PLC, ADR 102,500 4,279,375
Becton Dickinson & Company 83,400 2,230,950
Forest Labs, Incorporated * 64,000 3,932,000
Guidant Corporation 90,700 4,262,900
Medtronic, Incorporated 65,800 2,397,587
Pacificare Health Systems * 15,200 805,600
Pfizer, Incorporated 99,500 3,227,531
United Healthcare Corporation 42,500 2,257,813
-----------
23,393,756
ELECTRICAL EQUIPMENT - 3.82%
Emerson Electric Company 21,900 1,256,513
General Electric Company 11,000 1,702,250
Hubbell, Incorporated, Class B 20,000 545,000
KLA-Tencor Corporation * 12,500 1,392,187
Sony Corporation 11,600 3,303,100
-----------
8,199,050
ELECTRIC UTILITIES - 3.06%
AES Corporation * 28,500 2,130,375
American Electric Power,
Incorporated 42,900 1,378,163
CINergy Corporation 18,000 $ 434,250
Niagara Mohawk Holdings,
Incorporated * 62,500 871,094
Northeast Utilities 85,400 1,756,037
-----------
6,569,919
ELECTRONICS - 4.15%
Advanced Micro Devices,
Incorporated * 18,000 520,875
Agilent Technologies,
Incorporated * 18,100 1,399,356
Applied Materials,
Incorporated * 14,000 1,773,625
Intel Corporation 24,000 1,975,500
Teradyne, Incorporated * 48,900 3,227,400
-----------
8,896,756
FINANCIAL SERVICES - 4.24%
Association First Capital
Corporation, Class A 67,200 1,843,800
Citigroup, Incorporated 31,500 1,750,218
Household International,
Incorporated 39,300 1,463,925
SLM Holding Corporation 64,400 2,720,900
Wells Fargo & Company 32,500 1,314,219
----------
9,093,062
FOOD & BEVERAGES - 4.04%
Campbell Soup Company 76,900 2,975,069
Kellogg Company 102,000 3,142,875
PepsiCo, Incorporated 57,000 2,009,250
Seagram, Ltd. 12,000 540,000
----------
8,667,194
GAS & PIPELINE UTILITIES - 1.08%
Williams Companies,
Incorporated 75,500 2,307,469
----------
HOUSEHOLD PRODUCTS - 1.62%
Clorox Company 69,000 3,475,875
----------
INSURANCE - 5.70%
Allstate Corporation 65,000 1,560,000
American International Group,
Incorporated 18,125 1,959,766
Berkshire Hathaway,
Incorporated, Class A * 56 3,141,600
Cincinnati Financial
Corporation 54,000 1,684,125
Jefferson-Pilot Corporation 16,300 1,112,475
PMI Group, Incorporated 27,000 1,317,937
XL Capital, Ltd., Shares A 28,000 1,452,500
----------
12,228,403
</TABLE>
The accompanying notes are an integral part of the financial statements.
149
<PAGE> 192
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
INTERNATIONAL OIL - 1.47%
The Shell Transport & Trading
Company PLC 64,000 $3,152,000
----------
LEISURE TIME - 2.60%
Blockbuster, Incorporated,
Class A 20,000 267,500
Carnival Corporation, Class A 76,400 3,652,875
Hasbro, Incorporated 86,400 1,647,000
----------
5,567,375
LIQUOR - 0.54%
Anheuser-Busch Companies,
Incorporated 16,500 1,169,438
----------
PAPER - 1.58%
Fort James Corporation 48,500 1,327,687
Sealed Air Corporation 40,000 2,072,500
----------
3,400,187
PETROLEUM SERVICES - 0.82%
Baker Hughes, Incorporated 83,700 1,762,931
----------
PLASTICS - 1.22%
Illinois Tool Works,
Incorporated 38,700 2,614,669
----------
PUBLISHING - 0.89%
American Greetings
Corporation, Class A 80,400 1,899,450
----------
REAL ESTATE - 0.61%
IndyMac Mortgage Holdings,
Incorporated 102,000 1,300,500
----------
RETAIL GROCERY - 1.58%
Albertsons, Incorporated 77,500 2,499,375
Starbucks Corporation * 37,000 897,250
----------
3,396,625
RETAIL TRADE - 1.53%
Lowe's Companies, Incorporated
39,200 2,342,200
Williams Sonoma, Incorporated * 20,600 947,600
----------
3,289,800
SOFTWARE - 3.17%
Autodesk, Incorporated 34,000 1,147,500
Cadence Design Systems,
Incorporated * 106,500 2,556,000
PeopleSoft, Incorporated 90,100 1,920,256
Policy Management Systems
Corporation * 46,000 1,175,875
------------
6,799,631
TELECOMMUNICATIONS SERVICES - 1.73%
Nokia Corporaton, ADR 19,500 $ 3,705,000
------------
TELEPHONE - 3.63%
American Telephone &
Telegraph Corporation * 52,800 2,679,600
MCI WorldCom, Incorporated * 21,000 1,114,312
Sprint Corporation (FON Group)
59,200 3,984,900
------------
7,778,812
TOBACCO - 0.56%
Philip Morris Companies,
Incorporated 52,000 1,205,750
------------
TRUCKING & FREIGHT - 0.48%
CNF Transportation,
Incorporated 30,000 1,035,000
------------
TOTAL COMMON STOCKS
(Cost: $198,928,954) $204,364,822
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
REPURCHASE AGREEMENTS - 4.73%
$10,143,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.50%, to be
repurchased at $10,145,113 on
1/03/2000, collateralized by
$9,560,000 U.S. Treasury Bonds,
7.25% due 08/15/2022 (valued at
$10,348,700, including interest). $10,143,000
-----------
TOTAL INVESTMENTS (U.S. LARGE CAP VALUE
TRUST) (Cost: $209,071,954) $214,507,822
============
</TABLE>
<TABLE>
<CAPTION>
EQUITY-INCOME TRUST
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 91.74%
AEROSPACE - 2.39%
Boeing Company 176,100 $ 7,319,156
Honeywell International,
Incorporated 50,562 2,916,795
Lockheed Martin Corporation 439,800 9,620,625
TRW, Incorporated 100,900 5,240,494
-----------
25,097,070
</TABLE>
The accompanying notes are an integral part of the financial statements.
150
<PAGE> 193
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
ALUMINUM - 0.58%
Reynolds Metals Company 80,000 $ 6,130,000
-----------
AUTO PARTS - 0.89%
Dana Corporation 112,000 3,353,000
Genuine Parts Company 239,950 5,953,759
-----------
9,306,759
AUTOMOBILES - 0.39%
General Motors Corporation 57,000 4,143,188
-----------
BANKING - 6.81%
Bank America Corporation 109,800 5,510,588
Bank One Corporation 241,800 7,752,713
Chase Manhattan Corporation 40,000 3,107,500
Firstar Corporation 164,000 3,464,500
FleetBoston Financial
Corporation 347,060 12,082,026
J. P. Morgan & Company,
Incorporated 80,100 10,142,662
KeyCorp 106,900 2,365,163
Mellon Financial Corporation 524,200 17,855,562
Mercantile Bankshares
Corporation 171,950 5,491,653
National City Corporation 160,000 3,790,000
-----------
71,562,367
BUILDING MATERIALS & CONSTRUCTION - 0.46%
Fortune Brands, Incorporated 147,100 4,863,494
-----------
BUSINESS SERVICES - 1.54%
Dun & Bradstreet Corporation 196,500 5,796,750
H & R Block, Incorporated 125,500 5,490,625
R.R. Donnelley & Sons Company
195,900 4,860,769
-----------
16,148,144
CHEMICALS - 4.90%
CK Witco Corporation 199,344 2,666,226
Dow Chemical Company 72,000 9,621,000
E.I. Du Pont De Nemours &
Company 197,200 12,990,550
Great Lakes Chemical
Corporation 177,300 6,770,644
Hercules, Incorporated 268,200 7,476,075
Imperial Chemical Industries
PLC, ADR 108,400 4,613,775
PPG Industries, Incorporated 118,200 7,394,887
-----------
51,533,157
COMPUTERS & BUSINESS EQUIPMENT - 1.93%
Compaq Computer Corporation 157,800 4,270,463
Hewlett-Packard Company 80,200 9,137,787
Xerox Corporation 301,200 6,833,475
-----------
20,241,725
CONSTRUCTION MATERIALS - 0.45%
Armstrong World Industries,
Incorporated 143,300 $ 4,782,638
-----------
COSMETICS & TOILETRIES - 0.95%
International Flavors &
Fragrances, Incorporated 264,600 9,988,650
-----------
DOMESTIC OIL - 5.97%
Amerada Hess Corporation 175,700 9,970,975
Exxon Mobil Corporation 412,345 33,219,544
Phillips Petroleum Company 87,900 4,131,300
Unocal Corporation 307,800 10,330,537
USX-Marathon Group 204,200 5,041,188
-----------
62,693,544
DRUGS & HEALTH CARE - 4.31%
Abbott Laboratories 190,900 6,932,056
American Home Products
Corporation 389,300 15,353,019
Becton Dickinson & Company 78,800 2,107,900
Merck & Company, Incorporated 75,300 5,049,806
Pharmacia & Upjohn,
Incorporated 260,000 11,700,000
Smith & Nephew PLC * 1,224,100 4,112,761
-----------
45,255,542
ELECTRICAL EQUIPMENT - 0.90%
Cooper Industries,
Incorporated 122,300 4,945,506
Hubbell, Incorporated, Class B 165,500 4,509,875
----------
9,455,381
ELECTRIC UTILITIES - 4.41%
DQE, Incorporated 140,200 4,854,425
Duke Energy Company 147,500 7,393,438
Entergy Corporation 117,000 3,012,750
FirstEnergy Corporation 240,375 5,453,508
Niagara Mohawk Holdings,
Incorporated * 155,100 2,161,706
Reliant Energy, Incorporated 170,800 3,907,050
Scottish Power PLC 138,040 3,865,120
Southern Company 308,000 7,238,000
TECO Energy, Incorporated 124,000 2,301,750
Unicom Corporation 183,600 6,150,600
----------
46,338,347
FINANCIAL SERVICES - 3.20%
Citigroup, Incorporated 258,973 14,389,187
Federal National Mortgage
Association 184,500 11,519,719
Wells Fargo & Company 191,700 7,751,869
----------
33,660,775
</TABLE>
The accompanying notes are an integral part of the financial statements.
151
<PAGE> 194
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
FOOD & BEVERAGES - 5.56%
Campbell Soup Company 177,100 $ 6,851,556
General Mills, Incorporated 404,200 14,450,150
H.J. Heinz Company 234,700 9,343,994
Hershey Foods Corporation 184,900 8,782,750
Kellogg Company 149,700 4,612,631
McCormick & Company,
Incorporated 237,500 7,065,625
Quaker Oats Company 111,300 7,304,063
-----------
58,410,769
GOLD - 0.50%
Newmont Mining Corporation 215,700 5,284,650
-----------
HOTELS & RESTAURANTS - 1.04%
Hilton Hotels Corporation 389,700 3,750,863
Starwood Hotels & Resorts,
Class B 306,571 7,204,418
-----------
10,955,281
HOUSEHOLD APPLIANCES - 0.50%
Whirlpool Corporation 80,000 5,205,000
-----------
HOUSEHOLD PRODUCTS - 1.49%
The Stanley Works 216,600 6,525,075
Tupperware Corporation 158,400 2,682,900
Unilever NV * 117,100 6,468,962
-----------
15,676,937
INDUSTRIAL MACHINERY - 0.74%
Pall Corporation 359,400 7,749,562
-----------
INSURANCE - 4.89%
American General Corporation 147,800 11,214,325
Chubb Corporation 132,400 7,455,775
Lincoln National Corporation 130,200 5,208,000
SAFECO Corporation 207,200 5,154,100
St. Paul Companies,
Incorporated 311,948 10,508,748
UnumProvident Corporation 234,700 7,525,069
XL Capital, Ltd., Shares A 82,700 4,290,062
-----------
51,356,079
INTERNATIONAL OIL - 5.19%
Atlantic Richfield Company 199,000 17,213,500
Chevron Corporation 163,400 14,154,525
Royal Dutch Petroleum
Company, GDR 193,500 11,694,656
Texaco, Incorporated 210,200 11,416,488
-----------
54,479,169
LEISURE TIME - 1.58%
Hasbro, Incorporated 224,800 4,285,250
The Walt Disney Company 419,700 12,276,225
-----------
16,561,475
LIQUOR - 1.63%
Anheuser-Busch Companies,
Incorporated 143,800 $10,191,825
Brown Forman Corporation,
Class B 120,800 6,915,800
-----------
17,107,625
METAL & METAL PRODUCTS - 0.36%
Inco, Ltd. 160,400 3,769,400
-----------
MINING - 0.52%
Phelps Dodge Corporation 82,000 5,504,250
-----------
NEWSPAPERS - 1.61%
Dow Jones & Company,
Incorporated 96,400 6,555,200
Knight-Ridder, Incorporated 173,300 10,311,350
-----------
16,866,550
PAPER - 5.72%
Consolidated Papers,
Incorporated 200,200 6,368,862
Fort James Corporation 322,000 8,814,750
International Paper Company 334,655 18,887,092
Kimberly-Clark Corporation 218,400 14,250,600
Minnesota Mining &
Manufacturing Company 120,200 11,764,575
-----------
60,085,879
PETROLEUM SERVICES - 2.53%
Baker Hughes, Incorporated 440,500 9,278,031
BP Amoco PLC 291,800 17,307,388
-----------
26,585,419
PHOTOGRAPHY - 1.06%
Eastman Kodak Company 168,400 11,156,500
-----------
PUBLISHING - 0.42%
Readers Digest Association,
Incorporated, Class A 150,000 4,387,500
-----------
RAILROADS & EQUIPMENT - 2.17%
Burlington Northern Santa Fe
Corporation 99,300 2,408,025
GATX Corporation 63,000 2,126,250
Norfolk Southern Corporation 406,100 8,325,050
Union Pacific Corporation 227,200 9,911,600
-----------
22,770,925
REAL ESTATE - 1.33%
Rouse Company 237,400 5,044,750
Simon Property Group,
Incorporated 280,600 6,436,262
Vornado Realty Trust 78,400 2,548,000
-----------
14,029,012
</TABLE>
The accompanying notes are an integral part of the financial statements.
152
<PAGE> 195
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RETAIL TRADE - 1.59%
J. C. Penney, Incorporated 140,400 $ 2,799,225
May Department Stores,
Incorporated 151,050 4,871,363
Rite Aid Corporation 235,600 2,635,775
Toys R Us, Incorporated * 448,900 6,424,881
------------
16,731,244
SANITARY SERVICES - 0.58%
Waste Management, Incorporated 355,232 6,105,550
------------
TELEPHONE - 9.15%
Alltel Corporation 176,200 14,569,537
American Telephone &
Telegraph Corporation 91,050 4,620,788
BCE, Incorporated 145,500 13,122,281
Bell Atlantic Corporation 195,600 12,041,625
BellSouth Corporation 98,500 4,611,031
GTE Corporation 231,600 16,342,275
SBC Communications,
Incorporated 394,664 19,239,870
U. S. West, Incorporated 160,600 11,563,200
------------
96,110,607
TOBACCO - 1.50%
Philip Morris Companies,
Incorporated 329,400 7,637,963
UST, Incorporated 321,000 8,085,187
------------
15,723,150
TOTAL COMMON STOCKS
(Cost: $866,462,102) $963,813,315
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 7.50%
$15,000,000 American Petrofina Holding
6.33% due 01/31/2000 $14,920,875
1,750,000 Assets Securitization
Cooperative, 1,742,505
5.93% due 01/27/2000
10,000,000 CDC Commercial
6.38% due 01/10/2000 9,984,050
3,765,000 Delaware Funding Corporation
5.95% due 01/24/2000 3,750,688
11,000,000 6.50% due 01/13/2000 10,976,166
29,142,146 Navigator Securities Lending Trust, 29,142,146
5.86%
6,000,000 Preferred Receivables Funding
Corporation, 6.45% due
01/21/2000 5,978,500
2,300,000 T. Rowe Price Resources Investor
Fund 2,300,000
-----------
$78,794,930
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
REPURCHASE AGREEMENTS - 0.76%
$8,010,000 Repurchase Agreement with
State Street Bank & Trust Company
dated 12/31/1999 at 2.50%,
to be repurchased at $8,011,669
on 01/03/2000, collateralized by
$7,550,000 U.S. Treasury Bonds,
7.25% due 08/15/2022
(valued at $8,172,875, including interest). $8,010,000
----------
TOTAL INVESTMENTS (EQUITY-INCOME TRUST)
(Cost: $953,267,032) $1,050,618,245
==============
</TABLE>
<TABLE>
<CAPTION>
INCOME & VALUE TRUST SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 56.39%
AEROSPACE - 0.99%
Lockheed Martin Corporation 73,000 $ 1,596,875
United Technologies
Corporation 87,400 5,681,000
-----------
7,277,875
AIR TRAVEL - 0.33%
Galileo International,
Incorporated 80,000 2,395,000
-----------
ALUMINUM - 0.27%
Alcoa, Incorporated 24,000 1,992,000
-----------
APPAREL & TEXTILES - 1.15%
NIKE, Incorporated, Class B 74,000 3,667,625
Tommy Hilfiger Corporation * 136,100 3,172,831
V. F. Corporation 53,400 1,602,000
-----------
8,442,456
AUTO PARTS - 0.27%
Federal Mogul Corporation 99,900 2,010,488
-----------
AUTO SERVICES - 0.25%
AutoNation, Incorporated 197,900 1,830,575
-----------
BANKING - 2.61%
Bank America Corporation 181,100 9,088,956
Bank One Corporation 191,400 6,136,763
Washington Mutual,
Incorporated 150,000 3,900,000
-----------
19,125,719
BROADCASTING - 5.33%
Adelphia Communications
Corporation, Class A * 73,000 4,790,625
</TABLE>
<PAGE> 196
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BROADCASTING - CONTINUED
American Telephone & Telegraph
Corporation-Liberty Media
Group, Class A 217,200 $12,326,100
Cablevision Systems
Corporation, Class A 93,000 7,021,500
Charter Communications,
Incorporated, Class A 43,800 958,125
Fox Entertainment Group,
Incorporated, Class A 255,000 6,359,062
Viacom, Incorporated, Class A * 92,000 5,560,250
Viacom, Incorporated, Class B * 34,000 2,054,875
-----------
39,070,537
BUSINESS SERVICES - 3.72%
Ecolab, Incorporated 142,000 5,555,750
Interpublic Group Companies,
Incorporated 70,000 4,038,125
Quintiles Transnational
Corporation * 202,500 3,784,219
Service Corporation
International 240,000 1,665,000
Tyco International, Ltd. 140,000 5,442,500
United Parcel Service,
Incorporated, Class B 11,000 759,000
Young & Rubicam,
Incorporated
85,000 6,013,750
-----------
27,258,344
COMPUTERS & BUSINESS EQUIPMENT - 2.72%
Cisco Systems, Incorporated * 20,500 2,196,063
Compaq Computer
Corporation 149,000 4,032,312
Dell Computer Corporation * 61,800 3,151,800
Hewlett-Packard Company 33,500 3,816,906
International Business
Machines Corporation 62,000 6,696,000
-----------
19,893,081
CONSTRUCTION & MINING EQUIPMENT - 0.58%
Dover Corporation 93,000 4,219,875
-----------
COSMETICS & TOILETRIES - 0.32%
Avon Products, Incorporated 70,000 2,310,000
-----------
DOMESTIC OIL - 0.85%
Exxon Mobil Corporation 77,600 6,251,650
-----------
DRUGS & HEALTH CARE - 6.14%
Astrazeneca PLC, ADR 214,000 8,934,500
Becton Dickinson & Company 110,600 2,958,550
Forest Labs, Incorporated * 148,000 9,092,750
Guidant Corporation 177,800 8,356,600
Medtronic, Incorporated 126,000 4,591,125
Pacificare Health Systems * 35,500 1,881,500
Pfizer, Incorporated 190,000 6,163,125
United Healthcare
Corporation 56,400 $ 2,996,250
-----------
44,974,400
ELECTRICAL EQUIPMENT - 2.10%
Emerson Electric Company 34,700 1,990,912
General Electric Company 13,600 2,104,600
KLA-Tencor Corporation * 37,000 4,120,875
Sony Corporation 25,100 7,147,225
-----------
15,363,612
ELECTRIC UTILITIES - 1.98%
AES Corporation * 82,000 6,129,500
American Electric Power,
Incorporated 61,500 1,975,687
CINergy Corporation 35,000 844,375
Niagara Mohawk Holdings,
Incorporated * 75,700 1,055,069
Northeast Utilities 220,300 4,529,919
-----------
14,534,550
ELECTRONICS - 3.26%
Advanced Micro Devices,
Incorporated * 35,000 1,012,813
Agilent Technologies,
Incorporated * 39,500 3,053,844
Applied Materials,
Incorporated * 36,000 4,560,750
Intel Corporation 90,000 7,408,125
Raytheon Company, Class B 47,400 1,259,062
Teradyne, Incorporated * 99,500 6,567,000
-----------
23,861,594
FINANCIAL SERVICES - 2.72%
Association First Capital
Corporation, Class A 110,000 3,018,125
Citigroup, Incorporated 73,500 4,083,844
Household International,
Incorporated 110,000 4,097,500
SLM Holding Corporation 140,000 5,915,000
Wells Fargo & Company 68,700 2,778,056
-----------
19,892,525
FOOD & BEVERAGES - 1.69%
Campbell Soup Company 92,800 3,590,200
Kellogg Company 204,000 6,285,750
PepsiCo, Incorporated 32,000 1,128,000
Seagram, Ltd. 30,000 1,350,000
-----------
12,353,950
GAS & PIPELINE UTILITIES - 0.58%
Williams Companies,
Incorporated * 139,000 4,248,188
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
154
<PAGE> 197
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
HOUSEHOLD PRODUCTS - 0.72%
Black & Decker Corporation 30,000 $ 1,567,500
Clorox Company 73,000 3,677,375
-----------
5,244,875
INSURANCE - 2.89%
Allstate Corporation 38,000 912,000
American International Group,
Incorporated 31,250 3,378,906
Berkshire Hathaway,
Incorporated, Class A * 67 3,758,700
Cincinnati Financial
Corporation 175,200 5,464,050
Jefferson-Pilot Corporation 16,000 1,092,000
PMI Group, Incorporated 40,000 1,952,500
XL Capital, Ltd., Shares A 89,000 4,616,875
-----------
21,175,031
INTERNATIONAL OIL - 0.46%
The Shell Transport & Trading
Company PLC 69,000 3,398,250
-----------
LEISURE TIME - 1.59%
Blockbuster, Incorporated,
Class A 49,000 655,375
Carnival Corporation, Class A 152,000 7,267,500
Hasbro, Incorporated 194,400 3,705,750
-----------
11,628,625
LIQUOR - 0.53%
Anheuser-Busch Companies,
Incorporated 55,000 3,898,125
-----------
PAPER - 1.19%
Bowater, Incorporated 49,900 2,710,194
Fort James Corporation 120,000 3,285,000
Sealed Air Corporation * 52,000 2,694,250
-----------
8,689,444
PETROLEUM SERVICES - 0.45%
Baker Hughes, Incorporated 157,000 3,306,813
-----------
PLASTICS - 0.74%
Illinois Tool Works,
Incorporated 80,000 5,405,000
-----------
PUBLISHING - 0.82%
American Greetings
Corporation, Class A 167,000 3,945,375
Time Warner, Incorporated 29,000 2,100,687
-----------
6,046,062
REAL ESTATE - 0.41%
IndyMac Mortgage Holdings,
Incorporated 236,300 3,012,825
-----------
RETAIL GROCERY - 0.60%
Albertsons, Incorporated 88,100 $ 2,841,225
Starbucks Corporation * 63,000 1,527,750
-----------
4,368,975
RETAIL TRADE - 0.86%
Lowe's Companies,
Incorporated 78,000 4,660,500
Williams Sonoma,
Incorporated * 35,900 1,651,400
-----------
6,311,900
SOFTWARE - 2.79%
Autodesk, Incorporated 138,800 4,684,500
Cadence Design Systems,
Incorporated * 435,000 10,440,000
PeopleSoft, Incorporated * 195,000 4,155,938
Policy Management Systems
Corporation * 45,700 1,168,206
-----------
20,448,644
TELECOMMUNICATIONS SERVICES - 1.39%
Nokia Corporaton, ADR 52,000 9,880,000
Williams Communications
Group 9,600 277,800
-----------
10,157,800
TELEPHONE - 2.22%
American Telephone &
Telegraph Corporation * 99,750 5,062,313
MCI WorldCom, Incorporated * 52,500 2,785,781
Sprint Corporation
(FON Group) 125,400 8,440,987
------------
16,289,081
TOBACCO - 0.40%
Philip Morris Companies,
Incorporated 128,000 2,968,000
------------
TRUCKING & FREIGHT - 0.47%
CNF Transportation,
Incorporated 100,000 3,450,000
------------
TOTAL COMMON STOCKS
(Cost: $395,738,573) $413,105,869
------------
WARRANTS - 0.08%
BUSINESS SERVICES - 0.00%
Protection One, Incorporated,
(Expiration date
06/30/2005; strike price
$6.60) * 3,200 1,200
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
155
<PAGE> 198
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
INDUSTRIALS - 0.00%
McCaw International, Ltd.,
(Expiration date
04/15/2007; strike price
$36.45) * 250 $ 2,031
--------
SOFTWARE - 0.04%
Rhythms NetConnections,
Incorporated, (Expiration
date 05/15/2008; strike
price $0.01) * 2,400 303,552
--------
TELECOMMUNICATIONS SERVICES - 0.04%
Microcell Telecommunications,
Incorporated, (Expiration
date 06/15/2006; strike
price $0.01)
3,760 250,773
Orbital Imaging Corporation,
(Expiration date
03/01/2005; strike price
$1.00) * 570 11,472
--------
262,245
TOTAL WARRANTS
(Cost: $0) $569,028
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 7.87%
U.S. TREASURY BONDS - 0.34%
7.875% due 02/15/2021 $ 2,250,000 $ 2,515,073
-----------
U.S. TREASURY NOTES - 7.53%
5.25% due 08/15/2003 6,100,000 5,881,742
5.625% due 02/15/2006 4,000,000 3,826,880
6.25% due 02/15/2003 -
02/15/2007 28,750,000 28,533,412
6.875% due 05/15/2006 6,000,000 6,105,960
7.25% due 05/15/2004 7,250,000 7,468,660
7.50% due 11/15/2001 3,250,000 3,320,590
-----------
55,137,244
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $60,223,252) $57,652,317
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 11.93%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 7.68%
5.125% due 02/13/2004 3,000,000 2,820,480
5.25% due 01/15/2009 3,000,000 2,646,090
5.625% due 05/14/2004 5,000,000 4,778,100
5.875% due 04/23/2004 3,000,000 2,868,750
6.00% due 05/15/2008 -
05/01/2029 15,781,159 14,765,211
6.50% due 06/01/2014 -
05/01/2029 22,875,320 21,621,113
7.50% due 06/01/2025 -
09/01/2029 2,278,664 2,253,029
8.00% due 11/01/2029 4,496,808 4,541,776
-----------
56,294,549
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 4.25%
6.00% due 05/15/2029 -
06/15/2029 4,667,598 4,244,574
6.50% due 05/15/2029 -
07/15/2029 18,847,350 17,686,918
7.00% due 04/15/2029 -
10/15/2029 3,703,801 3,576,464
7.50% due 01/14/2000 998,390 987,158
8.00% due 10/15/2025 -
04/15/2029 4,562,415 4,609,125
-----------
31,104,239
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost: $90,866,667) $87,398,788
-----------
CORPORATE BONDS - 8.47%
AUTO SERVICES - 0.10%
Hertz Corporation
7.375% due 06/15/2001 750,000 753,219
---------
BANKING - 0.09%
Bank One Corporation
5.625% due 02/17/2004 750,000 703,545
---------
BUSINESS SERVICES - 0.31%
Williams Holdings,
Incorporated, 6.50% due
12/01/2008 2,500,000 2,291,025
---------
DRUGS & HEALTH CARE - 0.10%
McKesson Corporation
6.30% due 03/01/2005 825,000 767,637
---------
ELECTRIC UTILITIES - 0.22%
Michigan Consolidated Gas
Company, 6.45% due
06/30/2008 750,000 686,253
WMX Technologies, Incorporated
6.375% due 12/01/2003 750,000 675,667
6.70% due 05/01/2001 250,000 241,733
---------
1,603,653
</TABLE>
The accompanying notes are an integral part of the financial statements.
156
<PAGE> 199
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
FINANCIAL SERVICES - 1.85%
Associates Corporation of
North America
5.75% due 11/01/2003 $ 2,000,000 $ 1,907,620
6.25% due 11/01/2008 750,000 691,785
Bankamerica Corporation
5.875% due 02/15/2009 750,000 667,830
Chase Manhattan Corporation
6.375% due 04/01/2008 750,000 697,845
Ford Motor Credit Company
5.80% due 01/12/2009 2,250,000 1,994,085
6.70% due 07/16/2004 750,000 734,062
7.375% due 10/28/2009 1,000,000 987,250
Goldman Sachs Group,
Incorporated, 6.65% due
05/15/2009 750,000 698,100
Household Financial
Corporation, 6.40% due
06/17/2008 3,250,000 3,004,495
Lehman Brothers Holdings,
Incorporated, 6.625% due
02/05/2006 750,000 708,570
Reliastar Financial
Corporation, 8.00% due
10/30/2006 750,000 754,185
United States West Capital
Funding, Incorporated,
6.375% due 07/15/2008 750,000 684,653
-----------
13,530,480
FOOD & BEVERAGES - 0.10%
Delta Beverage Group,
Incorporated, 9.75% due
12/15/2003 750,000 750,000
-----------
HOUSEHOLD APPLIANCES - 0.10%
Philips Electronics NV
7.20% due 06/01/2026 750,000 731,678
-----------
INDUSTRIALS - 3.45%
British Sky Broadcasting
Group, 8.20% due 07/15/2009 1,750,000 1,682,039
CBS, Incorporated
7.15% due 05/20/2005 2,000,000 1,962,260
Columbia Gas Systems,
Incorporated, 6.39% due
11/28/2000 750,000 744,547
Cox Radio, Incorporated
6.375% due 05/15/2005 1,000,000 932,660
Crown Castle International
Corporation, Step up to
10.375% due 05/15/2011 3,250,000 2,031,250
Delta Air Lines,
Incorporated, 7.70% due
12/15/2005 1,250,000 1,229,345
Federal Mogul Corporation
7.875% due 07/01/2010 750,000 671,790
Fox / Liberty Networks LLC
Step up to 9.75% due
08/15/2007 1,500,000 1,200,000
Freeport McMoran Copper &
Gold, 7.20% due 11/15/2026 500,000 319,615
Home Products International,
Incorporated, 9.625% due
05/15/2008 750,000 684,375
International Business
Machines Corporation,
5.375% due 02/01/2009 750,000 656,850
McDermott, Incorporated
9.375% due 03/15/2002 1,125,000 1,124,314
Nabisco, Incorporated
6.375% due 02/01/2035 750,000 696,540
7.55% due 06/15/2015 2,000,000 1,890,622
Omnipoint Corporation
11.625% due 08/15/2006 2,250,000 2,385,000
Paracelsus Healthcare
Corporation, 10.00% due
08/15/2006 500,000 290,000
Radio One, Incorporated
7.00% due 05/15/2004 125,000 133,125
Salton, Incorporated
10.75% due 12/15/2005 1,000,000 1,022,500
Tekni Plex, Incorporated
9.25% due 03/01/2008 750,000 761,250
Time Warner, Incorporated
7.25% due 10/15/2017 2,250,000 2,100,240
8.18% due 08/15/2007 1,000,000 1,027,760
Ziff Davis, Incorporated
8.50% due 05/01/2008 1,000,000 1,020,000
Zilog, Incorporated
9.50% due 03/01/2005 750,000 682,500
-----------
25,248,582
PAPER - 0.10%
Fort James Corporation
6.875% due 09/15/2007 750,000 712,005
---------
PETROLEUM SERVICES - 0.10%
Amerada Hess Corporation
7.375% due 10/01/2009 750,000 731,932
---------
SANITARY SERVICES - 0.14%
Allied Waste North America,
Incorporated, 10.00% due
08/01/2009 1,125,000 1,006,875
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
157
<PAGE> 200
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
TELECOMMUNICATIONS SERVICES - 0.51%
Nextel Communications,
Incorporated
9.375% due 11/15/2009 $ 1,000,000 $ 980,000
12.00% due 11/01/2008 2,250,000 2,520,000
Spectrasite Holdings,
Incorporated, Step up to
11.25% due 04/15/2009 500,000 267,500
-----------
3,767,500
TELEPHONE - 1.30%
American Telephone &
Telegraph Corporation,
5.625% due 03/15/2004 750,000 709,268
Cable & Wireless Communication
6.625% due 03/06/2005 1,000,000 987,570
6.75% due 03/06/2008 2,250,000 2,216,655
Liberty Media Corporation
7.875% due 07/15/2009 1,750,000 1,741,932
Nextlink Communications,
Incorporated, 10.50% due
12/01/2009 1,500,000 1,522,500
Voicestream Wire
10.375% due 11/15/2009 2,250,000 2,317,500
-----------
9,495,425
TOTAL CORPORATE BONDS
(Cost: $63,917,156) $62,093,556
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.34%
California Infrastructure
PG&E-1, Series 1997-1,Class
A6, 6.32% due 09/25/2005 750,000 737,610
Merrill Lynch Mortgage
Investments, Incorporated,
7.12% due 06/18/2029 750,000 736,102
PP&L Transition Bond Company
LLC, Series 1999-1, Class
A8, 7.15% due 06/25/2009
1,000,000 994,810
-----------
2,468,522
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost: $2,492,557) $ 2,468,522
-----------
ASSET BACKED SECURITIES - 0.94%
Airplanes Passthru Trust,
8.15% due 03/15/2019 $ 1,458,571 $ 1,355,406
Citibank Credit Card Master
Trust I, 5.50% due
02/15/2006 1,500,000 1,415,625
EQCC Home Equity Loan Trust,
7.067% due 11/25/2024 750,000 742,260
Government Lease Trust,
6.18% due 05/18/2005 2,000,000 1,941,080
Sears Credit Account Master
Trust II, 5.65% due
03/15/2009 1,500,000 1,419,840
-----------
6,874,211
TOTAL ASSET BACKED
SECURITIES
(Cost: $7,145,562) $ 6,874,211
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 13.03%
$95,470,694 Navigator Securities Lending
Trust, 5.86% $ 95,470,694
------------
REPURCHASE AGREEMENTS - 0.95%
$6,949,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.50%, to be
repurchased at $6,950,447 on
01/03/2000, collateralized by
$6,550,000 U.S. Treasury Bonds,
7.25% due 08/15/2022 (valued at
$7,090,375, including interest). $ 6,949,000
------------
TOTAL INVESTMENTS (INCOME & VALUE
TRUST) (Cost: $722,798,129) $732,581,985
============
</TABLE>
BALANCED TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 63.06%
AUTOMOBILES - 0.86%
General Motors Corporation,
Class H * 5,300 $ 508,800
Harley Davidson, Incorporated
27,600 1,768,125
----------
2,276,925
</TABLE>
The accompanying notes are an integral part of the financial statements.
158
<PAGE> 201
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
BANKING - 0.98%
Fifth Third Bancorp 35,300 $ 2,590,138
-----------
BROADCASTING - 3.68%
American Telephone & Telegraph
Corporation-Liberty Media
Group, Class A * 48,200 2,735,350
AMFM, Incorporated * 33,400 2,613,550
Comcast Corporation, Class A 49,400 2,497,787
EchoStar Communications
Corporation * 19,500 1,901,250
-----------
9,747,937
BUSINESS SERVICES - 3.17%
America Online, Incorporated * 66,000 4,978,874
Automatic Data Processing,
Incorporated 63,500 3,421,062
-----------
8,399,936
COMPUTERS & BUSINESS EQUIPMENT - 4.92%
Cisco Systems, Incorporated * 62,200 6,663,175
EMC Corporation * 26,200 2,862,350
Sun Microsystems,
Incorporated 45,000 3,484,687
-----------
13,010,212
CONSTRUCTION MATERIALS - 0.09%
Lafarge Corporation 8,500 234,813
-----------
CRUDE PETROLEUM & NATURAL GAS - 0.70%
Conoco, Incorporated,
Class A 74,900 1,853,775
-----------
DOMESTIC OIL - 0.46%
Phillips Petroleum Company 25,700 1,207,900
-----------
DRUGS & HEALTH CARE - 7.28%
Abbott Laboratories 57,700 2,095,231
Amgen, Incorporated * 31,400 1,885,963
Genetech, Incorporated * 12,700 1,708,150
Guidant Corporation 47,900 2,251,300
Medtronic, Incorporated 70,800 2,579,775
Merck & Company,
Incorporated 50,000 3,353,125
Pfizer, Incorporated 76,300 2,474,981
Warner-Lambert Company 35,600 2,916,975
-----------
19,265,500
ELECTRICAL EQUIPMENT - 3.14%
General Electric Company 53,600 8,294,600
-----------
ELECTRONICS - 5.54%
Analog Devices, Incorporated * 28,600 $ 2,659,800
E-Tek Dynamics,
Incorporated * 16,500 2,221,313
JDS Uniphase Corporation * 15,000 2,419,687
Motorola, Incorporated 29,200 4,299,700
Texas Instruments,
Incorporated 31,500 3,051,562
-----------
14,652,062
FINANCIAL SERVICES - 4.19%
Capital One Financial
Corporation 54,100 2,606,944
Citigroup, Incorporated 61,000 3,389,312
Federal Home Loan Mortgage
Corporation 55,500 2,611,969
Federal National Mortgage
Association 39,800 2,485,012
-----------
11,093,237
FOOD & BEVERAGES - 0.93%
ConAgra, Incorporated 108,600 2,450,288
-----------
GAS & PIPELINE UTILITIES - 1.92%
Coastal Corporation 72,800 2,579,850
Columbia Energy Group 39,600 2,504,700
-----------
5,084,550
HOTELS & RESTAURANTS - 0.69%
Mirage Resorts, Incorporated * 119,100 1,823,719
-----------
HOUSEHOLD PRODUCTS - 2.52%
Clorox Company 49,000 2,468,375
Dial Corporation 68,975 1,676,955
Procter & Gamble Company 23,000 2,519,937
-----------
6,665,267
INSURANCE - 2.76%
American International Group,
Incorporated 30,900 3,341,063
XL Capital, Ltd., Shares A 76,512 3,969,060
-----------
7,310,123
INTERNATIONAL OIL - 0.63%
Texaco, Incorporated 30,900 1,678,256
-----------
LEISURE TIME - 0.99%
Carnival Corporation, Class A 54,600 2,610,563
-----------
PUBLISHING - 0.99%
Time Warner, Incorporated 36,200 2,622,238
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
159
<PAGE> 202
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RETAIL TRADE - 4.17%
Costco Wholesale
Corporation * 28,200 $ 2,573,250
Dayton Hudson Corporation 35,000 2,570,313
Home Depot, Incorporated 24,300 1,666,069
Wal-Mart Stores,
Incorporated 60,900 4,209,712
------------
11,019,344
SOFTWARE - 4.44%
BMC Software, Incorporated * 21,900 1,750,631
Microsoft Corporation * 66,200 7,728,850
Oracle Systems Corporation * 20,200 2,263,663
------------
11,743,144
TELECOMMUNICATIONS SERVICES - 3.08%
Comverse Technology,
Incorporated * 13,000 1,881,750
Nortel Networks Corporation 33,400 3,373,400
QUALCOMM, Incorporated * 16,400 2,888,450
------------
8,143,600
TELEPHONE - 4.93%
MCI WorldCom, Incorporated * 79,050 4,194,590
Nextel Communications,
Incorporated, Class A * 24,200 2,495,625
U.S. West, Incorporated 47,200 3,398,400
Voicestream Wireless
Corporation * 20,700 2,945,869
------------
13,034,484
TOTAL COMMON STOCKS
(Cost: $158,558,578) $166,812,611
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 29.34%
U.S. TREASURY NOTES - 29.34%
5.375% due 06/30/2003 $ 2,100,000 $ 2,037,000
5.50% due 02/28/2003 -
02/15/2008 10,500,000 9,916,578
5.75% due 04/30/2003 6,200,000 6,086,664
6.25% due 10/31/2001 -
02/15/2007 24,885,000 24,802,129
6.50% due 05/15/2005 10,820,000 10,823,354
6.625% due 03/31/2002 2,800,000 2,819,236
6.875% due 05/15/2006 10,700,000 10,888,962
7.25% due 05/15/2004 9,925,000 10,224,338
-----------
77,598,261
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $79,655,772) $77,598,261
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 1.62%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.59%
6.45% due 04/29/2009 $ 4,500,000 $ 4,199,760
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.03%
6.00% due 05/15/2008 100,000 93,625
-----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost: $4,600,355) $ 4,293,385
-----------
CORPORATE BONDS - 0.73%
TELECOMMUNICATIONS SERVICES - 0.73%
New York Telephone Company
5.875% due 09/01/2003 2,000,000 1,922,560
-----------
TOTAL CORPORATE BONDS
(Cost: $1,953,220) $ 1,922,560
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 2.60%
$6,873,100 Navigator Securities Lending
Trust, 5.86% $ 6,873,100
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
REPURCHASE AGREEMENTS - 2.65%
$7,005,000 Repurchase Agreement State Street
Bank & Trust Company dated
12/31/1999 at 2.50%, to be
repurchased at $7,006,459 on
1/03/2000, collateralized by
$6,830,000 U.S. Treasury Bonds,
6.875% due 08/15/2025 (valued at
$7,145,888, including interest. $ 7,005,000
------------
TOTAL INVESTMENTS (BALANCED TRUST)
(Cost: $258,646,025) $264,504,917
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
160
<PAGE> 203
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
HIGH YIELD TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
PREFERRED STOCK - 2.32%
BROADCASTING - 0.60%
Paxson Communications
Corporation, Series 144A 27 $ 288,225
Paxson Communications
Corporation 118 1,209,500
----------
1,497,725
FINANCIAL SERVICES - 0.33%
KMart Financing 19,150 837,812
----------
SOFTWARE - 0.30%
Concentric Network Corporation 757 751,323
----------
TELECOMMUNICATIONS SERVICES - 0.61%
IXC Communications,
Incorporated 1,404 1,547,910
----------
TELEPHONE - 0.48%
Dobson Communications
Corporation 852 930,810
NEXTEL Communications,
Incorporated, Series D 2,500 268,125
----------
1,198,935
TOTAL PREFERRED STOCK
(Cost: $4,943,860) $5,833,705
----------
WARRANTS - 0.30% *
BROADCASTING - 0.00%
Paxson Communications
Corporation, 144A
(Expiration date 06/30/2003;
strike price $16.00) 832 2,080
----------
COMPUTERS & BUSINESS EQUIPMENT - 0.04%
Wam ! Net, Incorporated,
(Expiration date
03/01/2005; strike price
$6.03) 4,500 101,250
----------
INDUSTRIALS - 0.00%
Nokornthai Strip Ml Public,
Ltd., (expiration date
02/01/2008; strike price
$1.00) 588,776 5,888
----------
TELECOMMUNICATIONS SERVICES - 0.19%
American Mobile Satellite
Corporation, 144A
(expiration date 04/01/2008;
strike price $12.57) 1,415 56,777
Globalstar
Telecommunications, 144A
(Expiration date 02/15/2004;
strike price $17.39) 750 $ 161,250
Iridium World Communications,
Ltd., (Expiration date
07/15/2005; strike price
$20.90) 240 32
Tele 1 Europe B V, (Expiration
Date 05/15/2009; strike
price $0.01) 1,550 263,500
----------
481,559
TELEPHONE - 0.07%
Occidente y Caribe Celular
SA, (Expiration date
03/15/2004; strike price
$1.00) 10,600 160,325
Onepoint Communications
Corporation, (Expiration
date 06/01/2008; strike
price $0.01) 1,200 12,150
----------
172,475
TOTAL WARRANTS
(Cost: $67,861) $ 763,252
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 0.70%
U.S. TREASURY NOTES - 0.70%
6.50% due 10/15/2006 $1,775,000 $1,770,278
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $1,773,530) $1,770,278
----------
FOREIGN GOVERNMENT OBLIGATIONS - 1.68%
FEDERAL REPUBLIC OF BRAZIL - 0.72%
5.00% due 04/15/2014 2,456,750 1,821,680
----------
REPUBLIC OF COLOMBIA - 0.46%
9.75% due 04/23/2009 1,250,000 1,162,500
----------
GOVERNMENT OF MEXICO - 0.50%
Series W-A, 6.25% due 12/31/2019 660,000 519,750
Series W-B, 6.25% due 12/31/2019 920,000 724,500
----------
1,244,250
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost: $4,000,252) $4,228,430
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
161
<PAGE> 204
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
CORPORATE BONDS - 83.33%
AUTO PARTS - 0.95%
Tenneco, Incorporated,
11.625% due 10/15/2009 $ 2,335,000 $ 2,381,700
-----------
BROADCASTING - 7.89%
AMSC Acquisition Company,
Incorporated, Series B,
12.25% due 04/01/2008 1,415,000 1,114,312
Cablevision S A,
13.75% due 05/01/2009 845,000 820,332
Chancellor Media Corporation,
8.125% due 12/15/2007 2,670,000 2,676,675
9.00% due 10/01/2008 1,875,000 1,950,000
CSC Holdings, Incorporated,
7.25% due 07/15/2008 2,045,000 1,928,353
Echostar DBS Corporation,
9.375% due 02/01/2009 2,750,000 2,756,875
HMV Media Group PLC,
10.875% due 05/15/2008 1,450,000 2,154,810
Multicanal SA,
10.50% due 02/01/2007 1,350,000 1,161,000
13.125% Series E,
due 04/15/2009 365,000 358,613
NTL, Incorporated,
10.75% due 04/01/2008 500,000 529,011
Rogers Cablesystems, Ltd.,
10.125% due 09/01/2012 650,000 689,000
TV Azteca SA DE CV,
Series B,
10.50% due 02/15/2007 4,280,000 3,712,900
-----------
19,851,881
BUILDING MATERIALS & CONSTRUCTION - 1.54%
American Standard,
Incorporated, 7.125% due
06/01/2006 1,800,000 1,825,741
D.R. Horton, Incorporated,
8.00% due 02/01/2009 2,240,000 2,049,600
-----------
3,875,341
BUSINESS SERVICES - 0.60%
PTC International Finance II
SA, 11.25% due 12/01/2009 1,500,000 1,508,002
-----------
CHEMICALS - 1.35%
Huntsman ICI Chemicals LLC,
10.125% due 07/01/2009 1,200,000 1,284,371
Lyondell Chemical Company,
9.625% due 05/01/2007 2,070,000 2,116,575
-----------
3,400,946
COMPUTERS & BUSINESS EQUIPMENT - 2.59%
Entex Information Services,
Incorporated, 12.50% due
08/01/2006 $ 390,000 $ 146,250
International Game
Technology, 8.375% due
05/15/2009 3,645,000 3,526,538
Netia Holdings II BV,
13.50% due 06/15/2009 1,800,000 1,865,336
Wam ! Net, Incorporated,
Step up to 13.25% due
03/01/2005 1,700,000 981,750
-----------
6,519,874
CONSTRUCTION MATERIALS - 1.84%
Nortek, Incorporated,
8.875% due 08/01/2008 2,675,000 2,541,250
Pindo Deli Finance Mauritius,
Ltd., 10.75% due 10/01/2007 2,845,000 2,076,850
-----------
4,618,100
CONSTRUCTION & MINING EQUIPMENT - 0.38%
Applied Power, Incorporated,
8.75% due 04/01/2009 965,000 944,494
-----------
CRUDE PETROLEUM & NATURAL GAS - 0.80%
Vintage Petroleum,
Incorporated,
8.625% due 02/01/2009 375,000 364,688
9.75% due 06/30/2009 1,595,000 1,634,875
-----------
1,999,563
DRUGS & HEALTH CARE - 6.46%
Columbia/HCA Healthcare
Corporation,
6.91% due 06/15/2005 3,885,000 3,554,775
7.00% due 07/01/2007 2,040,000 1,820,700
7.25% due 05/20/2008 750,000 675,000
7.69% due 06/15/2025 1,000,000 820,000
8.85% due 01/01/2007 2,280,000 2,228,700
Fresenius Medical Care
Capital Trust,
7.875% due 02/01/2008 1,900,000 1,733,750
9.00% due 12/01/2006 650,000 612,821
Tenet Healthcare Corporation,
8.125% due 12/01/2008 2,770,000 2,576,100
8.625% due 01/15/2007 2,300,000 2,225,250
----------
16,247,096
</TABLE>
The accompanying notes are an integral part of the financial statements.
162
<PAGE> 205
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
ELECTRIC UTILITIES - 2.96%
AES Corporation,
8.50% due 11/01/2007 $ 2,100,000 $ 1,963,500
CMS Energy Corporation,
7.50% due 01/15/2009 2,330,000 2,103,363
USA Waste Services,
Incorporated,
7.125% due 10/01/2007 970,000 848,478
7.125% due 12/15/2017 500,000 397,735
Waste Management,
Incorporated, 7.65% due
03/15/2011 530,000 458,646
WMX Technologies,
Incorporated, 7.00% due
10/15/2006 1,905,000 1,666,018
-----------
7,437,740
ELECTRONICS - 0.27%
Hyundai Semiconductor
American, Incorporated,
8.625% due 05/15/2007 830,000 687,241
-----------
FINANCIAL SERVICES - 1.27%
Cellco Finance NV,
12.75% due 08/01/2005 1,050,000 1,088,062
GS Escrow Corporation,
7.125% due 08/01/2005 2,355,000 2,116,580
-----------
3,204,642
FOREST PRODUCTS - 0.27%
Tembec Industries,
Incorporated, 8.625% due
06/30/2009 690,000 690,000
-----------
HOTELS & RESTAURANTS - 5.00%
Hilton Hotels Corporation,
7.95% due 04/15/2007 2,700,000 2,541,240
HMH Properties, Incorporated,
7.875% due 08/01/2005 3,550,000 3,274,875
Horseshoe Gaming LLC,
8.625% due 05/15/2009 2,525,000 2,411,375
Host Marriott Travel Plazas,
Incorporated, Series B,
9.50% due 05/15/2005 1,935,000 1,968,862
Park Place Entertainment
Corporation, 7.875% due
12/15/2005 2,500,000 2,387,500
-----------
12,583,852
INDUSTRIALS - 7.64%
Axia, Incorporated,
10.75% due 07/15/2008 705,000 645,956
EES Coke Battery Company,
Incorporated, 9.382% due
04/15/2007 525,000 492,240
Glencore Nickel Property,
Ltd., 9.00% due 12/01/2014 $ 630,000 $ 526,050
Hayes Lemmerz International,
Incorporated, 8.25% due
12/15/2008 2,500,000 2,275,000
Huntsman ICI Chemicals LLC,
10.125% due 07/01/2009 1,100,000 1,133,000
Indah Kiat Finance Mauritius,
Ltd., 10.00% due 07/01/2007 1,850,000 1,369,000
ISP Holdings, Incorporated,
Series B, 9.00% due
10/15/2003 2,300,000 2,282,750
Norampac, Incorporated,
9.50% due 02/01/2008 2,110,000 2,162,750
Paiton Energy,
9.34% due 02/15/2014 1,440,000 259,200
Psinet, Incorporated,
11.00% due 08/01/2009 1,250,000 1,287,500
Ras Laffan Liquefied Natural
Gas, 8.294% due 03/15/2014 1,005,000 943,966
S. D. Warren Company,
12.00% due 12/15/2004 935,000 974,738
Sequa Corporation,
9.00% due 08/01/2009 1,350,000 1,306,125
Sirona Dental Systems,
4.678% due 07/15/2008 1,550,000 614,711
Smithfield Foods,
Incorporated, 7.625% due
02/15/2008 2,475,000 2,227,500
Waste Management,
Incorporated, 6.875% due
05/15/2009 855,000 720,423
-----------
19,220,909
LEISURE TIME - 3.28%
Harrahs Operating,
Incorporated, 7.875% due
12/15/2005 3,385,000 3,258,063
Station Casinos, Incorporated,
8.875% due 05/29/2007 2,985,000 2,843,212
9.75% due 04/15/2007 885,000 893,850
10.125% due 03/15/2006 1,240,000 1,264,800
-----------
8,259,925
METAL & METAL PRODUCTS - 0.92%
Impress Metal Packaging
Holdings,
5.063% due 05/29/2007 2,015,000 1,006,690
9.875% due 05/29/2007 EUR 1,200,000 603,752
</TABLE>
The accompanying notes are an integral part of the financial statements.
163
<PAGE> 206
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
METAL & METAL PRODUCTS - CONTINUED
Republic Technologies
International, 13.75% due
07/15/2009 $1,050,000 $ 693,000
----------
2,303,442
MINING - 0.86%
Murrin Murrin Property, Ltd.,
9.375% due 08/31/2007 2,505,000 2,166,825
----------
PAPER - 0.89%
Pacifica Papers,
Incorporated,
10.00% due 03/15/2009 2,165,000 2,235,363
----------
PETROLEUM SERVICES - 1.24%
Husky Oil, Ltd.,
8.90% due 08/15/2008 965,000 963,645
Synder Oil Corporation,
8.75% due 06/15/2007 2,165,000 2,154,175
----------
3,117,820
POLLUTION CONTROL - 0.97%
Norcal Waste Systems,
Incorporated, Series B,
Step up to 13.50% due
11/15/2005 2,300,000 2,432,250
----------
PUBLISHING - 0.99%
Outdoor Systems,
Incorporated, 8.875%
due 06/15/2007 2,420,000 2,495,625
----------
RETAIL GROCERY - 0.67%
Stater Brothers Holdings,
Incorporated, 10.75%
due 08/15/2006 1,675,000 1,695,938
----------
RETAIL TRADE - 2.68%
K Mart Funding Corporation,
Series F, 8.80%
due 07/01/2010 3,500,000 3,465,385
Musicland Group, Incorporated,
9.00% due 06/15/2003 865,000 834,725
9.875% due 03/15/2008 2,700,000 2,443,500
----------
6,743,610
SOFTWARE - 1.15%
Psi Net, Incorporated,
10.00% due 02/15/2005 1,325,000 1,315,062
Rhythms NetConnections,
Incorporated, Series B,
Step up to 13.50% due
05/15/2008 $2,900,000 $1,566,000
----------
2,881,062
STEEL - 0.97%
National Steel Corporation,
Series D, 9.875%
due 03/01/2009 2,350,000 2,408,750
NSM Steel, Incorporated,
12.25% due 02/01/2008 930,000 18,600
----------
2,427,350
TELECOMMUNICATIONS SERVICES - 13.40%
Adelphia Communications
Corporation,
7.75% due 01/15/2009 2,150,000 1,961,875
8.375% due 02/01/2008 1,315,000 1,222,950
9.375% due 11/15/2009 2,000,000 1,960,000
Series B, 9.875% due
03/01/2007 275,000 279,125
American Cellular
Corporation, 10.50%
due 05/15/2008 1,640,000 1,816,300
Bayan Telecommunications,
13.50% due 07/15/2006 2,500,000 2,175,000
Centennial Cellular Operating
Company, 10.75%
due 12/15/2008 1,620,000 1,741,500
Dolphin Telecom PLC,
Step up to 11.50% due
06/01/2008 2,070,000 1,023,767
zero coupon due 05/15/2009 1,380,000 648,600
Global Crossings Holdings,
Ltd., 9.625% due 05/15/2008 1,635,000 1,630,912
Globalstar LP,
11.375% due 02/15/2004 1,440,000 921,600
Globalstar LP/Capital,
11.50% due 06/01/2005 275,000 182,875
Iridium Capital Corporation,
Series A, 13.00%
due 07/15/2005 1,740,000 78,300
Metromedia Fiber Network,
Incorporated, 10.00%
due 12/15/2009 2,000,000 2,102,842
Nextlink Communications,
10.75% due 11/15/2008 900,000 927,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
164
<PAGE> 207
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
TELECOMMUNICATIONS SERVICES - CONTINUED
NTL, Incorporated,
10.75% due 04/01/2008 $ 2,275,000 $ 2,425,373
Nuevo Grupo Isuacell SA de CV,
14.25% due 12/01/2006 1,630,000 1,687,050
RCN Corporation,
Step up to 11.125%
due 10/15/2007 2,350,000 1,662,625
Step up to 9.80%
due 02/15/2008 1,125,000 742,500
RSL Communications PLC,
10.00% due 03/15/2008 3,400,000 1,087,712
Satelites Mexicanos SA de CV,
10.125% due 11/01/2004 2,075,000 1,411,000
Tele1 Europ B V,
13.00% due 05/15/2009 1,550,000 1,604,250
Telewest Communications PLC,
Step up to 9.875% due
04/15/2009 2,225,000 2,247,233
United Pan Europe
Communication, 10.875% due
08/01/2009 2,110,000 2,162,750
------------
33,703,139
TELEPHONE - 13.50%
CTI Holdings SA,
Step up to 11.50% due
04/15/2008 3,300,000 1,897,500
Dobson Communications
Corporation, 11.75% due
04/15/2007 1,335,000 1,505,213
Esprit Telecom Group, PLC,
11.00% due 06/15/2008 1,505,000 779,026
11.50% due 12/15/2007 1,200,000 628,876
Hermes Europe Railtel BV,
10.375% due 01/15/2009 900,000 891,000
11.50% due 08/15/2007 1,025,000 1,048,062
Hyperion Telecommunications,
Incorporated, Series B,
Step up to 13.00% due
04/15/2003 2,540,000 2,260,600
Intermedia Communications,
Incorporated, 8.60% due
06/01/2008 550,000 507,375
Series B, Step up to 11.25%
due 07/15/2007 4,290,000 3,153,150
IXC Communications,
Incorporated, 9.00% due
04/15/2008 700,000 707,000
Lenfest Communications,
Incorporated, 7.625% due
02/15/2008 2,150,000 2,090,574
Nextel Communications,
Incorporated,
Step up to 10.65% due
09/15/2007 5,200,000 3,887,000
Step up to 9.75% due
08/15/2004 **** 1,725,000 1,776,750
Step up to 9.95% due
02/15/2008 1,150,000 807,875
Nextlink Communications,
Step up to 9.45% due
04/15/2008 2,200,000 1,397,000
Occidente y Caribe Celular,
Series B, Step up to 14.00%
due 03/15/2004 2,650,000 1,185,875
Onepoint Communications
Corporation, 14.50% due
06/01/2008 1,200,000 789,000
Primus Telecommunications
Group, Incorporated,
9.875% due 05/15/2008 1,695,000 1,533,975
11.25% due 01/15/2009 950,000 916,750
RSL Communications PLC,
9.125% due 03/01/2008 1,670,000 1,494,650
12.25% due 11/15/2006 346,000 351,190
Step up to 10.125% due
03/01/2008 3,000,000 1,860,000
Viatel, Incorporated,
Step up to 12.50% due
04/15/2008 2,900,000 1,812,500
Voicestream Wire,
10.375% due 11/15/2009 645,000 664,350
------------
33,945,291
TOTAL CORPORATE BONDS
(Cost: $221,699,762) $209,579,022
------------
CONVERTIBLE BONDS - 0.16%
TELECOMMUNICATIONS SERVICES - 0.16%
Total Access Communication
Public Company, Ltd., 2.00%
due 05/15/2006 400,000 392,000
------------
TOTAL CONVERTIBLE BONDS
(Cost: $402,000) $ 392,000
------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.78%
CA FM Lease Trust,
8.50% due 07/15/2017 1,600,654 1,544,006
</TABLE>
The accompanying notes are an integral part of the financial statements.
165
<PAGE> 208
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS --
CONTINUED
DLJ Mortgage Acceptance
Corporation, Series
1997-CF2, Class S, IO, 0.314%
due 10/15/2017 $20,519,864 $ 414,912
-----------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost: $2,174,140) $ 1,958,918
-----------
ASSET BACKED SECURITIES - 1.41%
Aircraft Lease Portfolio
Securitization, Ltd.,
Series 1996-1, Class DX,
12.75% due 06/15/2006 902,776 902,776
DR Structured Finance,
Series A-2, 8.375% due
08/15/2015 550,000 515,942
Series 94K2, 9.35% due
08/15/2019 400,000 385,849
Series A-1, 6.66% due
08/15/2010 582,091 521,955
Jet Equipment Trust, Series
C1, 11.79% due 06/15/2013 300,000 345,533
Long Beach Acceptance Auto
Business, 14.22% due
10/25/2003 357,900 352,861
OHA Auto Grantor Trust,
Series 1997-1, Class A,
11.00% due 01/15/2004 395,184 378,232
Securitized Multiple Asset
Rated Trust, Series 1997,
Class 5, 7.72% due
04/15/2004 541,461 135,366
TOTAL ASSET BACKED SECURITIES
(Cost: $4,029,573) $ 3,538,514
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 6.16%
$15,481,406 Navigator Securities Lending
Trust, 5.86% $ 15,481,406
------------
REPURCHASE AGREEMENTS - 3.16%
$7,959,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.50%, to be
repurchased at $7,960,658 on
01/03/2000, collateralized by
$7,590,000 U.S. Treasury Bonds,
7.125% due 02/15/2023 (valued at
$8,121,300, including interest). $ 7,959,000
------------
TOTAL INVESTMENTS (HIGH YIELD TRUST)
(Cost: $262,531,384) $251,504,525
============
</TABLE>
STRATEGIC BOND TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
PREFERRED STOCKS - 0.00%
ELECTRIC UTILITIES - 0.00%
TCR Holdings 18,019 $ 180
--------
180
TOTAL PREFERRED STOCKS
(Cost: $1,071) $ 180
--------
WARRANTS - 0.06% *
FINANCIAL SERVICES - 0.00%
BPC Holdings Corporation,
(Expiration date 04/15/2004;
strike price $18.797) 1,000 0
--------
TELEPHONE - 0.00%
In Flight Phone Corporation,
(Expiration date 05/15/2002;
strike price $100) 1,500 0
Wireless One, Incorporated,
(Expiration date 10/19/2000;
strike price $11.55) 2,250 23
--------
23
GOVERNMENT OF MEXICO - 0.06%
United Mexican States,
(expiration date 02/18/2009;
strike price Euro 1.32) 2,656 246,012
--------
TOTAL WARRANTS
(Cost: $91,395) $246,035
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
166
<PAGE> 209
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RIGHTS - 0.01% *
TRUCKING & FREIGHT - 0.01%
Terex Corporation*,
(Expiration date 05/15/2002;
strike price $20) 4,000 $56,500
-------
TOTAL RIGHTS
(Cost: $0) $56,500
-------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 5.27%
U.S. TREASURY BONDS - 2.72%
5.25% due 11/15/2028 *** $ 5,000,000 $ 4,118,750
5.25% due 02/15/2029 4,750,000 3,927,632
5.50% due 08/15/2028 *** 3,500,000 2,984,835
-----------
11,031,217
U.S. TREASURY NOTES - 2.55%
4.75% due 11/15/2008 5,000,000 4,410,150
5.25% due 05/31/2001 6,000,000 5,923,140
-----------
10,333,290
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $23,482,380) $21,364,507
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.44%
FEDERAL HOME LOAN BANK - 0.42%
5.89% due 07/24/2000 1,200,000 1,197,192
5.94% due 06/13/2000 500,000 498,360
-----------
1,695,552
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.14%
6.247% due 03/17/2021 3,000,000 2,802,090
8.00% due 05/01/2010 467,480 469,312
8.50% due 05/01/2008 307,194 314,201
10.00% due 05/15/2020 908,360 960,872
REMIC, IO, 759.50% due
07/15/2006 693,520 77,821
-----------
4,624,296
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 10.05%
IO, 1.041% due 05/25/2038 39,803,129 2,237,851
6.00% TBA ** 5,000,000 4,573,400
7.00% TBA ** 9,000,000 8,701,830
7.393% due 08/17/2003 2,264,218 2,268,633
7.50% TBA ** 17,000,000 16,808,750
8.80% due 01/25/2019 1,163,049 1,203,756
13.00% due 11/15/2015 127,868 144,101
IO, 1.67% due 02/25/2035 24,709,423 1,529,182
REMIC, IO, 0.945% due
02/17/2002 60,977,467 1,141,498
REMIC, IO, 0.53% due 10/17/2036 50,516,194 1,267,755
REMIC, IO, 0.579% due
03/17/2020 $20,470,751 $ 463,749
REMIC, 10.40% due 04/25/2019 427,067 453,891
-----------
40,794,396
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.53%
7.50% due 04/15/2022 -
02/15/2028 2,170,126 2,146,533
-----------
2,146,533
STUDENT LOAN MARKETING ASSOCIATION - 0.30%
7.20% due 11/09/2000 1,200,000 1,207,308
-----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost: $51,990,984) $50,468,085
-----------
FOREIGN GOVERNMENT OBLIGATIONS - 27.27%
GOVERNMENT OF ALGERIA - 0.78%
6.375% due 03/04/2010 4,444,210 3,155,389
-----------
REPUBLIC OF ARGENTINA - 2.18%
11.00% due 12/04/2005 6,100,000 6,015,359
11.375% due 01/30/2017 2,520,000 2,458,638
FRN, Series L, 6.813% due
03/31/2005 418,000 372,020
-----------
8,846,017
FEDERAL REPUBLIC OF BRAZIL - 4.37%
5.00% due 04/15/2014 12,380,853 9,180,403
6.938% due 04/15/2006 1,692,000 1,485,745
14.50% due 10/15/2009 6,357,000 7,056,270
-----------
17,722,418
NATIONAL REPUBLIC OF BULGARIA - 1.00%
2.75% due 07/25/2012 3,750,000 2,700,000
FRN 6.50% due 07/28/2011 1,750,000 1,378,125
-----------
4,078,125
REPUBLIC OF COLOMBIA - 1.35%
10.875% due 03/09/2004 5,350,000 5,483,750
-----------
REPUBLIC OF CROATIA - 0.65%
6.456% due 07/31/2006 2,855,955 2,627,479
-----------
REPUBLIC OF ECUADOR - 0.34%
6.819% due 02/28/2025 4,000,000 1,370,000
-----------
FEDERAL REPUBLIC OF GERMANY - 2.14%
5.625% due 01/04/2028 EUR 2,700,000 2,590,651
5.875% due 05/15/2000 4,200,000 4,267,465
4.00% due 07/04/2009 1,800,000 1,817,313
-----------
8,675,429
</TABLE>
The accompanying notes are an integral part of the financial statements.
167
<PAGE> 210
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
REPUBLIC OF GREECE - 2.36%
6.60% due 01/15/2004 GRD 826,000,000 $ 2,532,697
7.60% due 01/22/2002 468,000,000 1,448,129
8.90% due 04/01/2003 1,326,500,000 4,323,167
FRN 11.00% due 02/25/2000 408,800,000 1,263,076
--------------
9,567,069
REPUBLIC OF ITALY - 0.29%
5.25% due 11/01/2029 EUR 1,290,000 1,159,007
--------------
IVORY COAST - 0.43%
3.00% due 03/28/2018 $ 8,051,000 1,730,965
--------------
GOVERNMENT OF MEXICO - 2.79%
Series W-B, 6.25%due 12/31/2019 8,000,000 6,290,000
10.375% due 02/17/2009 4,400,000 4,710,640
11.375% due 09/15/2016 300,000 338,100
--------------
11,338,740
GOVERNMENT OF MOROCCO - 0.70%
FRN 6.84375% due 01/01/2009
3,153,096 2,853,552
--------------
KINGDOM OF NORWAY - 0.61%
5.25% due 03/15/2000 NOK 20,000,000 2,495,036
--------------
REPUBLIC OF PANAMA - 0.66%
4.25% VR due 07/17/2014 $ 3,400,000 2,660,500
--------------
REPUBLIC OF PERU - 0.92%
4.50% due 03/07/2017 5,400,000 3,739,500
--------------
REPUBLIC OF PHILLIPINES - 0.48%
8.60% due 06/15/2027 1,900,000 1,458,060
9.875% due 01/15/2019 500,000 493,750
--------------
1,951,810
GOVERNMENT OF RUSSIA - 2.40%
Vnesheconombank,
FRN 6.906% due 12/15/2015 14,350,000 2,385,687
9.25% due 11/27/2001 1,925,000 1,525,563
11.75% due 06/10/2003 6,425,000 4,834,812
12.75% due 06/24/2028 1,500,000 1,008,075
--------------
9,754,137
REPUBLIC OF SLOVENIA - 0.42%
5.375% due 05/27/2005 1,700,000 1,691,431
--------------
GOVERNMENT OF SPAIN - 0.34%
6.15% due 01/31/2013 EUR 1,350,000 1,399,904
--------------
KINGDOM OF SWEDEN - 0.41%
10.25% due 05/05/2003 SEK 12,400,000 1,672,084
--------------
REPUBLIC OF VENEZUELA - 1.65%
6.875% due 03/31/2007 $ 535,723 421,882
9.25% due 09/15/2027 2,150,000 1,404,810
13.625% due 08/15/2018 5,475,000 4,872,750
--------------
6,699,442
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost: $107,861,997) $ 110,671,784
--------------
CORPORATE BONDS - 28.55%
AGRICULTURE - 0.21%
Hines Horticulture,
11.75% due 10/15/2005 839,000 864,170
--------------
APPAREL & TEXTILES - 0.30%
Collins & Aikman
Floorcovering, 10.00%
due 01/15/2007 1,250,000 1,225,000
--------------
AUTO PARTS - 0.25%
Breed Technologies,
Incorporated, 9.25%
due 04/15/2008 1,000,000 11,250
Tenneco, Incorporated,
11.625% due 10/15/2009 1,000,000 1,020,000
--------------
1,031,250
BANKING - 1.29%
Bankamerica Corporation,
6.625% due 06/15/2004 1,475,000 1,438,567
Commerzbank O/S Finance
NV, 10.25% due 04/28/2000
AUD 5,680,000 3,777,956
----------
5,216,523
BROADCASTING - 1.87%
Capstar Broadcasting Partners,
9.25% due 07/01/2007 $1,250,000 1,271,875
Century Communications
Corporation, zero coupon due
01/15/2008 1,250,000 537,500
Chancellor Media Corporation,
9.375% due 10/01/2004 500,000 516,250
Charter Communications
Holdings, Step up to 9.92%
due 04/01/2011 2,000,000 1,172,500
CSC Holdings, Incorporated,
7.625% due 07/15/2018 375,000 346,361
10.50% due 05/15/2016 1,000,000 1,105,000
Falcon Holding Group LP,
Series B, 8.375% due
04/15/2010 1,000,000 1,007,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
168
<PAGE> 211
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
BROADCASTING - CONTINUED
Granite Broadcasting
Corporation, 8.875%
due 05/15/2008 $ 500,000 $ 477,500
Lin Holdings Corporation,
Step up to 10.00% due
03/01/2008 1,750,000 1,172,500
----------
7,606,986
BUSINESS SERVICES - 1.71%
CB Richards Ellis Services,
Incorporated, 8.875% due
06/01/2006 1,250,000 1,109,375
Comdisco, Incorporated,
6.00% due 01/30/2002 2,000,000 1,938,500
Jordan Industries,
Incorporated, Series B,
Step up to 11.75% due
04/01/2009 2,412,580 1,616,429
Primark Corporation,
9.25% due 12/15/2008 1,500,000 1,417,500
Protection One Alarm,
8.125% due 01/15/2009 675,000 364,500
Williams Scotsman,
Incorporated, 9.875%
due 06/01/2007 520,000 503,100
----------
6,949,404
CHEMICALS - 0.91%
Huntsman Packaging
Corporation, 9.125% due
10/01/2007 1,200,000 1,188,000
Lyondell Chemical Company,
9.875% due 05/01/2007 1,250,000 1,281,250
PCI Chemicals Canada,
Incorporated, 9.25% due
10/15/2007 1,000,000 767,500
United Industries Corporation,
9.875% due 04/01/2009 500,000 456,250
----------
3,693,000
COAL - 0.24%
PL Coal Holdings Corporation,
Series B,
8.875% due 05/15/2008 250,000 244,375
9.625% due 05/15/2008 750,000 738,750
----------
983,125
COSMETICS & TOILETRIES - 0.27%
American Safety Razor Company,
Series B,
9.875% due 08/01/2005 1,000,000 980,000
Revlon Consumer Products
Corporation, 8.625% due
02/01/2008 250,000 122,500
----------
1,102,500
CRUDE PETROLEUM & NATURAL GAS - 0.28%
Frontier Oil Corporation,
Series A, 9.125% due
02/15/2006 1,250,000 1,153,125
----------
DRUGS & HEALTH CARE - 0.54%
Cole National Group,
Incorporated, 8.625% due
08/15/2007 1,275,000 914,813
Packard BioScience,
Incorporated, 9.375% due
03/01/2007 900,000 771,750
Universal Hospital Services,
Incorporated, 10.25% due
03/01/2008 750,000 521,250
----------
2,207,813
FINANCIAL SERVICES - 6.60%
Contifinancial Corporation,
8.125% due 04/01/2008 1,000,000 90,000
8.375% due 08/15/2003 580,000 52,200
Donaldson Lufkin & Jenrette,
5.875% due 04/01/2002 1,500,000 1,456,020
DVI, Incorporated,
9.875% due 02/01/2004 500,000 495,000
Foamex Capital Corporation,
9.875% due 06/15/2007 1,375,000 1,141,250
Ford Motor Credit Company,
7.375% due 10/28/2009 2,900,000 2,863,025
Forest City Enterprises,
Incorporated, 8.50% due
03/15/2008 1,000,000 927,500
General Electric Capital
Corporation, 5.875% due
07/07/2000 AUD 1,830,000 1,200,614
International Finance
Corporation, 20.25% due
05/05/2000 PLZ 7,500,000 1,818,319
Intertek Finance PLC, Series
B, 10.25% due 11/01/2006 1,250,000 1,162,500
KFW International Finance,
2.05% due 09/21/2009 JPY 544,000,000 5,493,245
16.30% due 06/24/2003 PLZ 2,430,000 637,618
Merrill Lynch & Company,
Incorporated,
6.00% due 11/15/2004 $ 1,020,000 966,878
5.97% due 09/11/2000 CAD 5,450,000 3,779,363
</TABLE>
The accompanying notes are an integral part of the financial statements.
169
<PAGE> 212
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
FINANCIAL SERVICES - CONTINUED
Nordiska Investeringsbanken,
17.75% due 04/15/2002 PLZ 3,160,000 $ 810,061
Paine Webber Group
Incorporated,
7.625% due 12/01/2009 $ 300,000 295,539
7.75% due 09/01/2002 1,700,000 1,714,739
Sudwestdeutsche Lbank
Capital,
17.50% due 05/05/2003 PLZ 2,470,000 661,255
TPSA Finance BV,
144A , 7.75% due
12/10/2008 $ 300,000 277,730
7.75% due 12/10/2008 1,000,000 941,500
-----------
26,784,356
FOOD & BEVERAGES - 0.43%
Delta Beverage Group,
Incorporated,
9.75% due 12/15/2003 1,000,000 1,000,000
Imperial Holly Corporation,
9.75% due 12/15/2007 1,000,000 730,000
-----------
1,730,000
FUNERAL SERVICES - 0.35%
Service Corporation
International,
6.00% due 12/15/2005 2,000,000 1,400,900
-----------
GAS & PIPELINE UTILITIES - 0.47%
Praxair, Incorporated,
6.15% due 04/15/2003 2,000,000 1,913,060
-----------
HOTELS & RESTAURANTS - 0.28%
HMH Properties, Incorporated,
Series B, 7.875% due
08/01/2008 1,000,000 890,000
Series C, 8.45% due
12/01/2008 250,000 230,625
-----------
1,120,625
INDUSTRIAL MACHINERY - 0.25%
Cabot Safety Acquisition
Corporation, 12.50% due
07/15/2005 1,000,000 1,020,000
-----------
INDUSTRIALS - 2.60%
A.H. Belo Corporation,
7.25% due 09/15/2027 1,000,000 897,080
APP FIN II Mauritius, Ltd.,
Series B, Step up to 12.00%
due 02/15/2004 1,000,000 640,000
Empress Entertainment,
Incorporated, 8.125% due
07/01/2006 1,000,000 1,010,000
Hayes Lemmerz International,
Incorporated, 8.25% due
12/15/2008 $ 1,250,000 $ 1,137,500
High Voltage Engineering
Corporation, 10.50% due
08/15/2004 500,000 427,500
Indesco International,
Incorporated, 9.75% due
04/15/2008 750,000 337,500
Integrated Electrical
Services, 9.625% due
02/01/2009 1,500,000 1,471,875
Mastec, Incorporated,
7.75% due 02/01/2008 750,000 705,000
Nebco Evans Holding Company,
Step up to 12.375% due
07/15/2007 1,500,000 195,000
Panolam Industries
International, Incorporated,
11.50% due 02/15/2009 1,000,000 1,017,500
Raytheon Company,
6.15% due 11/01/2008 1,200,000 1,066,260
RG Receivables, Ltd.,
9.60% due 02/10/2005 1,125,000 911,250
Stellex Industries,
Incorporated, 9.50% due
11/01/2007 1,000,000 725,000
-----------
10,541,465
LEISURE TIME - 1.22%
Harrahs Operating,
Incorporated, 7.875% due
12/15/2005 1,500,000 1,443,750
Horseshoe Gaming LLC,
9.375% due 06/15/2007 1,500,000 1,500,000
Mohegan Tribal Gaming
Authority, 8.75% due
01/01/2009 950,000 938,125
Sun International Hotels,
Ltd., 8.625% due 12/15/2007 1,125,000 1,057,500
-----------
4,939,375
MINING - 0.21%
Murrin Murrin Holdings
Property, 9.375% due
08/31/2007 1,000,000 865,000
-----------
OFFICE FURNISHINGS & SUPPLIES - 0.43%
Staples, Incorporated,
7.125% due 08/15/2007 *** 1,850,000 1,739,888
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
170
<PAGE> 213
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
PAPER - 0.23%
Repap New Brunswick,
Incorporated, 10.625% due
04/15/2005 $1,000,000 $ 930,000
----------
PETROLEUM SERVICES - 0.65%
Bellwether Exploration
Company, 10.875% due
04/01/2007 1,000,000 917,500
Benton Oil & Gas Company,
11.625% due 05/01/2003 1,000,000 700,000
Costilla Energy, Incorporated,
10.25% due 10/01/2006 750,000 217,500
Plains Resources,
Incorporated, 10.25% due
03/15/2006 500,000 487,500
United Refining Company,
Series B, 10.75% due
06/15/2007 500,000 325,000
----------
2,647,500
PLASTICS - 0.05%
Key Plastics, Incorporated,
10.25% due 03/15/2007 500,000 190,000
----------
POLLUTION CONTROL - 0.49%
Loomis Fargo & Company,
10.00% due 01/15/2004 1,000,000 985,000
Safety-Kleen Services,
Incorporated, 9.25% due
06/01/2008 1,000,000 987,500
----------
1,972,500
REAL ESTATE - 0.33%
Radnor Holdings Corporation,
10.00% due 12/01/2003 750,000 750,000
Spieker Properties LP,
7.25% due 05/01/2009 650,000 605,436
----------
1,355,436
RETAIL TRADE - 0.55%
Finlay Enterprises,
Incorporated, 9.00% due
05/01/2008 500,000 455,000
Finlay Fine Jewelry
Corporation, 8.375% due
05/01/2008 500,000 462,500
Maxim Group, Incorporated,
9.25% due 10/15/2007 500,000 398,750
Musicland Group, Incorporated,
9.875% due 03/15/2008 1,000,000 905,000
----------
2,221,250
SANITARY SERVICES - 0.11%
Allied Waste North America,
Incorporated, 10.00% due
08/01/2009 $ 500,000 $ 446,250
----------
SOFTWARE - 0.26%
Alvey Systems, Incorporated,
11.375% due 01/31/2003 1,000,000 1,035,000
----------
TELECOMMUNICATIONS SERVICES - 2.55%
Adelphia Communications
Corporation, Series B
9.875% due 03/01/2007 525,000 532,875
10.50% due 07/15/2004 475,000 495,187
Centennial Cellular Operating
Company, 10.75% due
12/15/2008 1,250,000 1,343,750
Diamond Cable Communications
PLC,
Step up to 11.75% due
12/15/2005 750,000 708,750
GST Network Funding,
Incorporated, Step up to
10.50% due 05/01/2008 1,000,000 482,500
ICG Holdings, Incorporated,
Step up to 13.50% due
09/15/2005 1,250,000 1,081,250
International Cabletel,
Incorporated, Series B, Step
up to 11.50% due 02/01/2006 1,500,000 1,350,000
Jordan Telecommunication
Products,
Step up to 11.75% due
08/01/2007 600,000 648,000
Step up to 11.75% due
08/01/2007 500,000 540,000
Rogers Communications,
Incorporated, 8.875% due
07/15/2007 500,000 503,750
Telewest Communication PLC,
Step up to 11.00% due
10/01/2007 1,500,000 1,398,750
United International Holdings,
Incorporated, Step up to
10.75% due 02/15/2008 2,000,000 1,265,000
----------
10,349,812
TELEPHONE - 0.99%
GTE Corporation,
6.94% due 04/15/2028 880,000 797,298
Intermedia Communications,
Incorporated, Series B
Step up to 11.25% due
07/15/2007 750,000 551,250
</TABLE>
The accompanying notes are an integral part of the financial statements.
171
<PAGE> 214
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
TELEPHONE - CONTINUED
Nextel Communications,
Incorporated, Step up to
9.95% due 02/15/2008 $ 1,000,000 $ 702,500
Sprint Capital Corporation,
6.50% due 11/15/2001 2,000,000 1,982,920
------------
4,033,968
TRANSPORTATION - 1.63%
Atlantic Express
Transportation Corporation,
10.75% due 02/01/2004 1,250,000 1,212,500
Axiohm Transaction Solutions,
9.75% due 10/01/2007 1,000,000 201,250
Holt Group, Incorporated,
9.75% due 01/15/2006 1,000,000 657,500
Iron, Incorporated,
10.125% due 10/01/2006 1,000,000 1,020,000
Navistar International
Corporation, 8.00% due
02/01/2008 1,000,000 950,000
Stena AB,
10.50% due 12/15/2005 1,000,000 912,500
Teekay Shipping Corporation,
8.32% due 02/01/2008 750,000 688,125
TFM SA de CV,
Step up to 11.75% due
06/15/2009 1,500,000 960,000
------------
6,601,875
TOTAL CORPORATE BONDS
(Cost: $129,342,343) $115,871,156
------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 10.63%
Commercial Mortgage Asset
Trust, Series 1999-C1, 7.35%
due 08/17/2013 8,000,000 7,441,840
Contimortgage Home Equity Loan
Trust, Series 1999-3, Class
B, 7.00% due 12/25/2029 3,600,000 3,127,212
DLJ Commercial Mortgage
Corporation, Series
1998-CF2, Class S, IO,
0.848% due 11/12/2031 41,163,896 1,968,869
Series 1998-CG1, Class S,
IO, 0.703% due 05/10/2023 46,564,711 1,901,237
First Boston Mortgage
Securities Corporation
Strip, Series D, Class IO,
due 05/25/2017 458,596 133,277
First Union Residential
Securitiation Trust, Series
1998-A, Class B2, REMIC due
08/25/2028 $ 1,098,674 $ 976,930
GE Capital Mortgage Services,
Incorporated, Series
1998-14, Class B1, 6.75% due
10/25/2028 3,759,673 3,388,631
Green Tree Financial
Corporation, Series 1997-6,
Class A8, 7.07% due
09/15/2007 *** 7,889,089 7,637,585
LB Commercial Conduit Mortgage
Trust, Series 1999-C1, Class
A2, 6.78% due 04/15/2009 5,280,000 5,034,216
PNC Mortgage Securities
Corporation, Series 1998-4,
Class 3B3, 6.75% due
05/25/2028 1,551,628 1,346,347
Series 1998-4, Class CB3,
6.838% due 05/25/2028 2,263,803 1,993,098
Series 1999-1, Class CB2,
6.772% due 03/25/2029 4,147,178 3,739,262
Series 1999-2, Class DB3,
6.905% due 04/25/2029 2,994,924 2,630,771
Series 98-5, Class C, 6.735%
due 07/25/2028 2,080,225 1,809,609
------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost: $45,818,255) $ 43,128,884
------------
ASSET BACKED SECURITIES - 3.73%
Airplane Pass Through Trust,
10.875% due 03/15/2019 1,500,000 1,300,680
Countrywide Home Loan, Series
MTNH, 6.25% due 04/15/2009 2,500,000 2,256,425
Countrywide Mortgage Backed
Securities, Incorporated,
Series 1994-J, Class B1,
7.75% due 06/25/2024 *** 5,133,009 5,034,199
Mid State Trust VI,
7.34% due 07/01/2035 *** 6,717,759 6,528,788
-----------
TOTAL ASSET BACKED SECURITIES
(Cost: $15,844,051) $15,120,092
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
172
<PAGE> 215
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
SUPRANATIONAL OBLIGATIONS - 0.19%
European Bank Reconstruction
and Development (The
"World Bank"), 10.50% due
01/25/2001 PLZ 3,400,000 $ 777,848
---------
TOTAL SUPRANATIONAL OBLIGATIONS
(Cost: $993,440) $ 777,848
---------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 11.19%
Bombardier Capital, Incorporated,
$ 508,000 5.75% due 01/04/2000 $ 507,757
Consolidation Coal Company,
11,771,000 6.52% due 01/19/2000 11,732,626
Earthgrains Company,
4,100,000 5.50% due 01/03/2000 4,098,747
14,135,537 Navigator Securities Lending
Trust, 5.86% 14,135,537
Tyco International,
15,000,000 6.52% due 01/19/2000 14,951,100
-----------
$45,425,767
REPURCHASE AGREEMENTS - 0.66%
$ 2,675,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 3.00%, to be
repurchased at $2,675,669 on
01/03/2000, collateralized by
$2,705,000 U.S. Treasury Notes,
3.625% due 01/15/2008 (valued at
$2,728,669, including interest).*** $ 2,675,000
-----------
</TABLE>
PUT OPTIONS - 0.00%
<TABLE>
<CAPTION>
Number of Expiration month/
Contracts Strike price Value
--------- ------------ -----
<S> <C> <C>
265,000 Hong Kong Dollar January 2000/
7.8025 $ 14,575
524,500 Hong Kong Dollar January 2000/
7.8165 0
------------
$ 14,575
TOTAL PUT OPTIONS
(Cost: $708,065) $ 14,575
------------
TOTAL INVESTMENTS
(STRATEGIC BOND
TRUST)
(Cost: $424,234,748) $405,820,413
============
</TABLE>
GLOBAL BOND TRUST
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 11.55%
U.S. TREASURY BONDS - 5.37%
8.875% due 08/15/2017 $ 4,000,000 $ 4,834,360
12.50% due 08/15/2014 3,840,000 5,363,981
-----------
10,198,341
U.S. TREASURY NOTES - 6.18%
3.625% due 07/15/2002 11,535,920 11,420,561
5.50% due 02/29/2000 **** 315,000 315,050
-----------
11,735,611
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $22,241,969) $21,933,952
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 1.09%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.26%
7.00% due 07/01/2003 482,549 482,849
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.83%
6.50% TBA ** 500,000 469,220
7.00% TBA ** 1,150,000 1,110,474
-----------
1,579,694
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost: $2,085,615) $ 2,062,543
-----------
FOREIGN GOVERNMENT OBLIGATIONS - 24.44%
AUSTRALIA - 2.12%
6.50% due 06/14/2005 AUD 6,300,000 4,030,484
-----------
BRAZIL - 0.08%
FRN 6.50% due 01/01/2001 $ 147,600 145,940
-----------
CANADA - 4.56%
6.00% due 06/01/2008 CAD 2,040,000 1,389,207
6.625% due 10/03/2007 NZD 5,000,000 2,429,755
9.00% due 12/01/2004 CAD 650,000 501,673
9.25% due 04/01/2000 $ 600,000 604,746
5.25% due 04/01/2002 CAD 5,500,000 3,732,722
-----------
8,658,103
COLOMBIA - 0.10%
9.75% due 04/23/2009 $ 190,000 181,687
-----------
GERMANY - 1.75%
5.375% due 01/04/2010 EUR 3,290,000 3,322,466
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
173
<PAGE> 216
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
ITALY - 1.56%
4.25% due 11/01/2009 EUR 3,260,000 $ 2,968,371
------------
JAPAN - 7.47%
00.90% due 12/22/2008 JPY 96,000,000 862,281
3.00% due 09/20/2005 22,000,000 235,568
3.30% due 06/20/2006 510,000,000 5,564,226
4.50% due 12/20/2004 560,000,000 6,381,051
1.40% due 06/22/2009 119,000,000 1,130,308
------------
14,173,434
NEW ZEALAND - 1.14%
7.00% due 07/15/2009 NZD 400,000 204,320
10.00% due 03/15/2002 2,960,000 1,650,995
4.50% due 02/15/2016 600,000 309,337
------------
2,164,652
PANAMA - 0.36%
4.25% VR due 07/17/2014 $ 880,000 688,600
------------
PHILIPPINES - 0.56%
9.50% due 10/21/2024 700,000 707,000
FRN 6.875% due 12/01/2009 376,000 347,800
------------
1,054,800
POLAND - 0.06%
Step up to 3.50% due
10/27/2024 30,000 18,375
4.00% due 10/27/2024 150,000 98,250
------------
116,625
PORTUGAL - 0.37%
3.95% due 07/15/2009 EUR 800,000 706,354
------------
SINGAPORE - 0.87%
4.375% due 01/15/2009 SGD 2,800,000 1,660,162
------------
SPAIN - 0.17%
5.15% due 07/30/2009 EUR 320,000 313,604
------------
SWEDEN - 3.27%
5.00% due 01/15/2004 SEK 20,400,000 2,364,724
zero coupon due 07/31/2000 $ 4,000,000 3,850,200
------------
6,214,924
TOTAL FOREIGN GOVERNMENT
OBLIGATIONS
(Cost: $47,032,944) $ 46,400,206
------------
FOREIGN BONDS - 1.07%
AUSTRALIA - 1.07%
Federal National Mortgage
Association, 6.50% due
07/10/2002 AUD 3,125,000 $ 2,040,382
------------
TOTAL FOREIGN BONDS
(Cost: $1,982,562) $ 2,040,382
------------
CORPORATE BONDS - 37.99%
AUSTRALIA - 0.73%
Bankers Trust Australia,
FRN 6.415% due 06/02/2008 $ 1,400,000 1,383,690
------------
BELGIUM - 6.39%
Compagnie Financiere de CIC
6.88625% due 10/29/2049 800,000 749,520
General Electric Capital
Corporation, FRN 6.0125%
due 04/17/2000 1,900,000 1,898,385
Hypobank Essen,
4.75% due 08/11/2008 EUR 700,000 659,310
John Hancock Global Fund,
5.375% due 06/18/2009 FRF 4,000,000 593,634
Sudwestdt LBK Capital,
4.625% due 02/17/2003 EUR 7,250,000 7,252,162
YTB Finance (Aruba),
3.50% due 07/18/2012 JPY 100,000,000 988,549
------------
12,141,560
DENMARK - 1.49%
Realkredit Danmark Mortgage,
5.00% due 10/01/2029 DKK 23,846,000 2,809,342
Unikredit Realkredit
Mortgage, 5.00% due
10/01/2029 99,000 11,627
------------
2,820,969
FRANCE - 3.60%
AXA SA,
2.50% due 01/01/2014 EUR 234,630 239,047
Electricite De France,
3.75% due 10/28/2003 6,800,000 6,598,926
------------
6,837,973
GERMANY - 3.87%
Allgemeine HypothekenBank AG,
5.00% due 09/02/2009 500,000 475,822
Depfa Pfandbriefbank,
5.50% due 01/15/2010 4,720,000 4,657,219
Deutsche Bank Finance BV,
zero coupon due
01/20/2032 ITL 18,370,000,000 1,046,496
</TABLE>
The accompanying notes are an integral part of the financial statements.
174
<PAGE> 217
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
GERMANY - CONTINUED
Hypothenkenbank IN Essen AG,
4.25% due 07/06/2009 EUR 820,000 $ 738,055
Rheinesche Hypothekebank
AG, 4.00% due 09/15/2006 460,000 429,322
------------
7,346,914
GREECE - 0.26%
Hellenic Finance SCA,
2.00% due 07/15/2003 500,000 498,638
------------
JAPAN - 0.98%
Korea Development Bank,
2.70% due 08/16/2002 JPY 186,000,000 1,853,264
------------
NETHERLANDS - 1.26%
Deutsche Bank Finance N V,
FRN 6.2025% due 12/17/2003 $ 1,500,000 1,497,000
Kpnqwest,
7.125% due 06/01/2009 EUR 900,000 890,205
------------
2,387,205
UNITED KINGDOM - 6.41%
Abbey National Treasury
Services, 4.875% due
02/24/2003 5,500,000 5,554,274
Barclays Bank PLC,
6.50% due 02/16/2004 GBP 4,170,000 6,622,640
------------
12,176,914
UNITED STATES - 13.00%
Amresco Residential Securities,
Series 1999 1, Certificate
Class A, FRN 6.06% due
06/25/2029 $ 1,664,239 1,690,051
El Paso Energy Corporation,
FRN 5.96% due 07/15/2001 2,530,000 2,530,643
General Motors Corporation,
1.25% due 12/20/2004 JPY 167,000,000 1,641,069
General Motors Acceptance,
FRN 00.34% due 07/26/2002 110,000,000 1,075,453
4.00% due 02/09/2006 EUR 5,441,000 5,046,895
Household Finance Corporation,
FRN 6.5075% due 08/06/2002 $ 850,000 $ 854,343
International Game Technology,
7.875% due 05/15/2004 500,000 483,750
J. P. Morgan & Company,
Incorporated, 3.35596% due
02/15/2012 360,000 311,944
KFW International Finance,
5.75% due 01/15/2008 5,500,000 5,041,575
Kroger Company,
FRN 6.42% due 10/01/2010 600,000 599,975
Lehman Brothers Holdings,
Incorporated, FRN 6.978%
due 04/01/2002 $ 1,600,000 $ 1,610,960
Texas Utilities Company,
Series 144A, FRN 6.725% due
06/25/2001 2,100,000 2,097,345
7.105% due 09/25/2029 700,000 700,000
TRW, Incorporated,
FRN 6.60125% due 06/28/2000
1,000,000 999,973
------------
24,683,976
TOTAL CORPORATE BONDS
(Cost: $77,682,413) $ 72,131,103
------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 5.96%
JAPAN - 0.89%
International Credit
Recovery-Japan, Series 1,
Class A, FRN 0.655% due
11/08/2004 JPY 70,000,000 685,133
Class B, FRN 0.755% due
11/08/2004 40,000,000 391,504
SHL Corporation, Ltd., Series
1999-1A, Class A1, FRN
0.887% due 12/25/2024 41,609,370 407,321
Class A2, FRN 1.187% due
12/25/2024 20,000,000 195,752
------------
1,679,710
UNITED STATES - 5.07%
CDC Securitization Corporation,
Series 1999-FL1, Class A, FRB
6.9125% due 12/14/2001 $ 2,000,000 2,000,000
Crusade Global Trust, Series
1999-1, Class A2, 5.773% due
05/15/2021 3,900,000 3,896,344
Government Lease Trust,
4.00% due 05/18/2011 500,000 350,703
Salomon Brothers Mortgage
Securities VII, Incorporated
Series 1999-AQB, Class A1,
5.82% due 12/15/2029 696,209 695,992
Series 1999-LB1, Class A,
6.7713% due 06/25/2029 1,694,372 1,692,118
Sasco Floating Rate Commercial
Mortgage, Series 1999-C3,
Class A, 5.81% due
10/21/2013 995,822 995,510
-----------
9,630,667
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost: $11,238,993) $11,310,377
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
175
<PAGE> 218
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
ASSET BACKED SECURITIES - 2.31%
UNITED STATES - 2.31%
Merrill Lynch Credit
Corporation, Series 1999-A,
Class A, 6.8425% due
02/15/2026 $ 1,900,000 $ 1,900,000
United Panam Mortgage Loan
Trust, Series 1999-2, Class
A2, 5.866% due 09/25/2029 2,486,211 2,481,910
-----------
TOTAL ASSET BACKED SECURITIES
(Cost: $4,386,211) $ 4,381,910
-----------
SUPRANATIONAL OBLIGATIONS - 6.37%
Asian Development Bank, zero
coupon due 08/31/2004 2,600,000 1,887,990
European Investment Bank,
6.00% due 11/26/2004 GBP 1,300,000 2,035,529
Inter-American Development
Bank, 5.75% due 04/15/2004 NZD 5,600,000 2,718,692
International Bank for
Reconstruction and
Development (the "World
Bank"), 5.375% due
11/06/2003 11,250,000 5,451,960
-----------
TOTAL SUPRANATIONAL OBLIGATIONS
(Cost: $13,008,252) $12,094,171
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 5.75%
General Electric Capital
Corporation,
$5,000,000 5.95% due 02/14/2000 $ 4,963,639
J.C. Penney Funding Corporation,
500,000 6.54% due 01/27/2000 497,638
MCI WorldCom, Incorporated
1,100,000 5.36% due 01/27/2000 1,095,742
Oesterreichische
1,800,000 5.93% due 01/18/2000 1,794,959
U.S. West Capital Funding,
Incorporated,
1,500,000 5.957% due 03/24/2000 1,479,399
1,100,000 6.20% due 03/24/2000 1,084,276
-----------
$10,915,653
REPURCHASE AGREEMENTS - 2.50%
$4,737,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.50% to be
repurchased at $4,737,987 on
01/03/2000, collateralized by
$3,980,000 U.S. Treasury Bonds,
8.50% due 02/15/2020 (valued at
$4,835,700, including interest).*** $ 4,737,000
-----------
</TABLE>
PUT OPTIONS - 0.97%
<TABLE>
<CAPTION>
Number of Expiration month/
Contracts Strike price Value
--------- ------------ -----
<S> <C> <C>
2,540,000 Federal Republic January 2000/
of Germany Bonds DEM 65 $ 472,535
1,190,000 United Kingdom January 2000/
Treasury Notes GBP 170 517,900
17,200,000 U.S. Treasury January 2000/
Bonds, 5.25% $105.29 389,236
4,100,000 U.S. Treasury January 2000/
Bonds, 5.625% $101.02 464,940
------------
TOTAL PUT OPTIONS
(Cost: $1,857,431) $ 1,844,611
------------
TOTAL INVESTMENTS (GLOBAL BOND TRUST)
(Cost: $197,156,223) $189,851,908
============
</TABLE>
TOTAL RETURN TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 3.95%
ELECTRIC UTILITIES - 2.98%
Northeast Utilities 400,000 $ 8,225,000
-----------
GAS & PIPELINE UTILITIES - 0.97%
MCN Energy Group, Incorporated 112,600 2,674,250
-----------
TOTAL COMMON STOCKS
(Cost: $11,228,408) $10,899,250
-----------
RIGHTS - 0.00% *
GOVERNMENT OF MEXICO - 0.00%
United Mexican States,
(Expiration date 6/30/2003) 4,615,000 0
-----------
TOTAL RIGHTS
(Cost: $0) $ 0
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
176
<PAGE> 219
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 5.29%
U.S. TREASURY BONDS - 1.29%
3.875% due 04/15/2029 $ 613,860 $ 573,001
11.25% due 02/15/2015 2,100,000 2,968,539
-----------
3,541,540
U.S. TREASURY NOTES - 3.99%
3.625% due 07/15/2002 10,290,944 10,188,035
5.50% due 02/29/2000 **** 820,000 820,131
-----------
11,008,166
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $14,546,931) $14,549,706
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 21.29%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 7.45%
6.00% due 06/15/2014 4,458,615 4,422,366
6.074% due 01/01/2029 11,812,203 11,572,297
7.50% due 12/20/2029 5,000,000 4,553,125
-----------
20,547,788
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.23%
6.255% due 09/01/2013 700,000 638,422
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 13.61%
6.375% due 05/20/2023 -
02/20/2024 9,411,737 9,537,388
6.75% due 02/20/2021 1,222,807 1,235,609
7.00% due 12/15/2099 27,700,000 26,747,951
-----------
37,520,948
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost: $59,711,634) $58,707,158
-----------
FOREIGN GOVERNMENT OBLIGATIONS - 3.02%
GOVERNMENT OF MEXICO - 1.68%
FRN, Series D 6.902% due
12/31/2019 $ 3,000,000 2,808,900
7.00% due 03/20/2002 1,987,914 1,828,881
-----------
4,637,781
GOVERNMENT OF NEW ZEALAND - 0.27%
5.50% due 04/15/2003 NZD 700,000 350,389
10.00% due 03/15/2002 700,000 390,438
-----------
740,827
REPUBLIC OF POLAND - 1.07%
4.00% due 10/27/2024 $ 4,500,000 2,947,500
-----------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost: $8,238,371) $ 8,326,108
-----------
CORPORATE BONDS - 33.57%
BUILDING MATERIALS & CONSTRUCTION - 1.11%
Cemex SA,
9.25% due 06/17/2002 $ 3,000,000 $ 3,045,000
-----------
ELECTRIC UTILITIES - 8.32%
Houston Industries,
Incorporated, 9.375% due
06/01/2001 1,500,000 1,540,695
LG&E Capital Corporation,
6.205% due 05/01/2004 6,000,000 5,765,400
Niagara Mohawk Power
Corporation, 7.00% due
10/01/2000 1,512,196 1,511,440
System Energy Resources,
Incorporated, 7.80% due
08/01/2000 4,100,000 4,117,630
Texas Utilities Company,
6.437% due 09/24/2001 5,000,000 5,000,000
Series 144A, FRN 6.725% due
06/25/2001 5,000,000 4,993,680
-----------
22,928,845
FINANCIAL SERVICES - 10.74%
Caterpillar Financial
Services Corporation,
6.875% due 08/01/2004 3,500,000 3,434,214
Ford Credit Canada, Ltd.,
6.28% due 12/16/2002 7,000,000 6,973,141
Household Finance Corporation
6.125% due 02/27/2003 2,000,000 1,929,800
6.301% due 05/24/2002 3,000,000 3,002,910
SB Treasury Company LLC,
9.40%, VR due 12/29/2049 4,000,000 3,980,000
Tecnost International NV,
5.316% due 06/23/2004 10,000,000 10,301,157
----------
29,621,222
INDUSTRIALS - 10.00%
Allied Waste North America,
Incorporated, 7.375% due
01/01/2004 2,000,000 1,840,000
Boise Cascade Corporation,
9.85% due 06/15/2002 6,000,000 6,122,100
Building Materials
Corporation America, 8.625%
due 12/15/2006 1,000,000 947,500
Burlington Northern Santa Fe,
6.05% due 03/15/2001 5,885,000 5,830,746
Cox Enterprises,
Incorporated, 6.625% due
06/14/2002 5,000,000 4,900,800
</TABLE>
The accompanying notes are an integral part of the financial statements.
177
<PAGE> 220
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
INDUSTRIALS - CONTINUED
Lockheed Martin Corporation,
6.85% due 05/15/2001 $ 8,000,000 $ 7,944,960
-----------
27,586,106
INVESTMENT COMPANIES - 1.38%
Bear Stearns Companies,
Incorporated, 6.58% due
08/01/2002 1,900,000 1,902,774
Lehman Brothers Holdings,
Incorporated, 6.831% due
02/27/2001 1,900,000 1,901,748
-----------
3,804,522
SANITARY SERVICES - 1.30%
Waste Management,
Incorporated, 6.50% due
05/14/2004 4,000,000 3,586,084
-----------
TELEPHONE - 0.72%
Philippine Long Distance
Telephone Company, 10.50%
due 04/15/2009 2,000,000 1,991,182
-----------
TOTAL CORPORATE BONDS
(Cost: $94,131,855) $92,562,961
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS - 15.80%
ABN Amro Mortgage
Corporation, 6.50% due
06/25/2029 5,000,000 4,480,100
Contimortgage Home Equity
Loan, 6.42% due 04/25/2014 4,026,541 4,003,389
GE Capital Mortgage Services,
Incorporated,
6.75% due 03/25/2028 3,350,000 3,083,508
6.75% due 05/25/2029 10,000,000 9,190,600
GMAC Commercial Mortgage
Security, Incorporated,
6.57% due 09/15/2033 5,828,631 5,647,069
Green Tree Financial
Corporation, 6.97% due
04/01/2031 4,000,000 3,977,480
PNC Mortgage Securities
Corporation, 6.50% due
06/25/2029 7,389,101 6,619,600
Residential Funding Mortgage
Securities I, Series 1998,
Class A6,
6.75% due 03/25/2028 $ 4,335,000 $ 3,991,451
Series 1999 S14, Class A1,
5.90% due 06/25/2025 2,600,638 2,573,695
-----------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost: $45,937,650) $43,566,892
-----------
ASSET BACKED SECURITIES - 8.33%
Brazos Student Finance
Corporation, 5.73% due
06/01/2023 5,000,000 4,930,350
Duck Auto Grantor Trust,
5.65% due 03/15/2004 1,281,233 1,265,474
FHA 220 NP Reily 60
7.43% due 09/01/2022 7,228,704 6,925,966
Norwest Asset Securities
Corporation,
6.50% due 06/25/2029 5,000,000 4,477,750
6.25% due 10/25/2029 5,985,429 5,379,285
-----------
TOTAL ASSET BACKED SECURITIES
(Cost: $23,870,366) $22,978,825
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 4.79%
General Electric Capital
Corporation,
$ 600,000 5.81% due 03/08/2000 $ 593,512
500,000 5.94% due 02/17/2000 496,122
General Motors Acceptance
Corporation,
1,000,000 5.86% due 02/14/2000 $ 992,838
Houston Industries Finance LP,
3,000,000 6.50% due 01/19/2000 2,990,250
Reseau Ferre De France,
3,000,000 5.80% due 02/24/2000 2,973,900
U.S. Treasury Bills
10,000 zero coupon due 02/10/2000 9,947
160,000 zero coupon due 02/17/2000 **** 158,987
US West Capital Funding,
Incorporated,
5,000,000 6.571% due 03/15/2000 4,998,315
-----------
$13,213,871
</TABLE>
The accompanying notes are an integral part of the financial statements.
178
<PAGE> 221
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
REPURCHASE AGREEMENTS - 3.97%
$10,939,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.50%, to be
repurchased at $10,941,279 on
01/03/2000, collateralized by
$9,745,000 U.S. Treasury Bonds,
8.00% due 11/15/2021 (valued at
$11,158,025, including interest). $ 10,939,000
------------
TOTAL INVESTMENTS (TOTAL RETURN TRUST)
(Cost: $281,818,086) $275,743,771
============
</TABLE>
INVESTMENT QUALITY BOND TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 0.04%
INDUSTRIALS - 0.00%
SF Holdings Group
Incorporated, Class C 144A 62 $ 0
--------
PUBLISHING - 0.04%
Primedia, Incorporated 1,525 133,056
--------
TOTAL COMMON STOCKS
(Cost: $150,688) $133,056
--------
PREFERRED STOCK - 0.16%
INDUSTRIALS - 0.03%
SF Holding Group,
Incorporated, Series B 17 85,425
--------
MINING - 0.08%
Fairfield Manufacturing,
Incorporated 270 265,275
--------
SOFTWARE - 0.05%
Concentric Network Corporation
170 168,725
--------
TOTAL PREFERRED STOCK
(Cost: $556,265) $519,425
--------
WARRANTS - 0.00% *
SOFTWARE - 0.00%
Concentric Network
Corporation, 144A
(Expiration date 2/15/2007;
strike price $5.43125) 40 10,605
--------
TELECOMMUNICATIONS SERVICES - 0.00%
American Mobile Satellite
Corporation, 144A
(expiration date 04/01/2008;
strike price $12.51) 35 $ 1,404
KMC Telecom Holdings,
Incorporated, 144A
(Expiration date 04/15/2008;
strike price $ 0.21785) 425 1,302
--------
2,706
TOTAL WARRANTS
(Cost: $0) $ 13,311
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 14.17%
U.S. TREASURY BONDS - 14.17%
7.50% due 11/15/2016 $11,900,000 $12,731,096
8.125% due 08/15/2019 700,000 797,671
8.75% due 05/15/2017 3,300,000 3,941,421
11.875% due 11/15/2003 6,000,000 7,081,860
12.00% due 08/15/2013 17,150,000 22,900,566
-----------
47,452,614
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $52,834,390) $47,452,614
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 15.25%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 3.07%
6.00% due 02/01/2003 -
11/01/2013 5,974,241 5,682,138
6.50% due 05/01/2029 -
06/01/2029 1,000,099 942,904
7.50% due 06/01/2010 -
05/01/2028 2,383,515 2,370,183
6.30% due 03/15/2023 400,000 388,372
6.50% due 06/25/2019 900,000 894,933
-----------
10,278,530
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.87%
5.90% due 10/25/2019 579,116 574,588
6.00% due 02/01/2028 -
11/01/2028 6,923,126 6,333,552
6.18% due 07/01/2008 359,463 334,901
6.27% due 11/01/2007 1,085,553 1,021,287
6.295% due 06/01/2008 196,925 184,847
6.30% due 01/01/2008 308,782 290,698
6.34% due 01/01/2008 286,249 270,539
6.39% due 01/01/2006 143,902 138,144
6.43% due 01/01/2008 313,660 297,545
6.447% due 01/01/2008 1,480,178 1,405,509
6.812% due 10/01/2007 209,700 205,008
6.981% due 06/01/2007 79,850 78,691
</TABLE>
The accompanying notes are an integral part of the financial statements.
179
<PAGE> 222
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - CONTINUED
7.024% due 06/01/2007 $ 102,809 $ 101,605
7.04% due 03/01/2007 661,253 651,515
7.085% due 08/01/2003 678,710 675,292
7.28% due 10/01/2006 389,183 388,380
-----------
12,952,101
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 8.31%
6.00% due 08/15/2008 -
12/15/2013 4,242,575 4,051,417
6.50% due 07/15/2008 -
06/15/2029 2,096,681 1,971,952
7.00% due 04/15/2023 -
07/15/2029 12,821,947 12,418,022
7.50% due 04/15/2002 -
07/15/2028 8,005,909 7,949,177
8.00% due 06/15/2023 -
10/15/2023 1,425,562 1,444,743
-----------
27,835,311
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost: $53,089,803) $51,065,942
-----------
FOREIGN GOVERNMENT OBLIGATIONS - 0.94%
GOVERNMENT OF CANADA - 0.94%
8.625% due 01/19/2005 $ 2,000,000 2,109,520
8.80% due 04/15/2003 1,000,000 1,051,090
-----------
3,160,610
TOTAL FOREIGN GOVERNMENT
OBLIGATIONS
(Cost: $3,345,537) $ 3,160,610
-----------
CORPORATE BONDS - 46.51%
AEROSPACE - 0.35%
Dunlop Standard Aerospace
Holdings PLC, 11.875%
due 05/15/2009 225,000 231,469
Raytheon Company,
6.75% due 08/15/2007 1,000,000 932,930
-----------
1,164,399
AIR TRAVEL - 1.06%
Continental Airlines,
6.648% due 09/15/2017 895,310 812,234
6.90% due 01/02/2018 1,272,944 1,178,453
SCL Term Aero Santiago SA,
6.95% due 07/01/2012 1,700,000 1,543,855
-----------
3,534,542
APPAREL & TEXTILES - 0.10%
Bell Sports, Incorporated,
11.00% due 08/15/2008 $ 250,000 $ 250,000
Westpoint Stevens,
Incorporated, 7.875% due
06/15/2008 75,000 67,500
-----------
317,500
AUTO PARTS - 0.08%
Accuride Corporation,
9.25% due 02/01/2008 95,000 86,450
LDM Technologies,
Incorporated, 10.75% due
01/15/2007 215,000 182,750
-----------
269,200
AUTO SERVICES - 0.07%
Delco Remy International,
Incorporated,
8.625% due 12/15/2007 150,000 141,750
10.625% due 08/01/2006 100,000 103,500
-----------
245,250
AUTOMOBILES - 0.58%
Chrysler Corporation,
7.45% due 02/01/2097 2,000,000 1,852,200
Westinghouse Air Brake
Company, 9.375% due
06/15/2005 85,000 85,000
-----------
1,937,200
BANKING - 5.59%
Bank New York, Incorporated,
6.625% due 06/15/2003 1,000,000 983,570
BankAmerica Corporation,
9.625% due 02/13/2001 1,475,000 1,517,229
Citicorp,
7.125% due 06/01/2003 1,000,000 997,110
Credit National,
7.00% due 11/14/2005 1,300,000 1,245,270
Export-Import Bank of Korea,
6.375% due 02/15/2006 610,000 561,267
First Financial Caribbean
Corporation, 7.84% due
10/10/2006 810,000 769,038
First Republic Bank of San
Francisco, 7.75% due
09/15/2012 825,000 698,721
Grove Worldwide LLC/Cap,
Incorporated, 9.25% due
05/01/2008 120,000 34,800
Korea Development Bank,
7.125% due 09/17/2001 715,000 709,752
Liberty Financial Companies,
Incorporated, 6.75% due
11/15/2008 965,000 888,244
</TABLE>
The accompanying notes are an integral part of the financial statements.
180
<PAGE> 223
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
BANKING - CONTINUED
National City Corporation,
6.875% due 05/15/2019 $ 2,250,000 $ 2,018,002
National Westminster Bank
PLC, 9.45% due
05/01/2001 1,000,000 1,030,900
NBD Bancorp,
8.25% due 11/01/2024 2,000,000 2,103,660
Republic New York
Corporation, 9.50% due
04/15/2014 1,000,000 1,104,040
Royal Bank Scotland Group
PLC, 6.40% due
04/01/2009 2,750,000 2,509,705
Sprint Capital Corporation,
6.875% due 11/15/2028 1,745,000 1,550,799
-----------
18,722,107
BROADCASTING - 1.45%
AMSC Acquisition Company,
Incorporated, Series B,
12.25% due 04/01/2008 75,000 59,063
Cablevision SA,
13.75% due 05/01/2009 140,000 135,913
Century Communications
Corporation, zero coupon
due 01/15/2008 700,000 301,000
Echostar DBS Corporation,
9.375% due 02/01/2009 600,000 601,500
Emmis Communications
Corporation, 8.125% due
03/15/2009 95,000 90,013
Falcon Holding Group LP,
Series B,
8.375% due 04/15/2010 75,000 75,562
Step up to 9.285% due
04/15/2003 150,000 109,875
Granite Broadcasting
Corporation, 8.875% due
05/15/2008 175,000 167,125
Lin Holdings Corporation,
Step up to 10.00% due
03/01/2008 600,000 402,000
Multicanal SA, Series E,
13.125% due 04/15/2009 325,000 319,312
USA Networks, Incorporated,
6.75% due 11/15/2005 1,570,000 1,499,755
Viacom, Incorporated,
7.75% due 06/01/2005 1,035,000 1,041,759
Young Broadcasting,
Incorporated, 8.75% due
06/15/2007 50,000 47,875
-----------
4,850,752
BUILDING MATERIALS & CONSTRUCTION - 0.14%
American Standard,
Incorporated, 7.625% due
02/15/2010 $ 70,000 $ 64,925
Falcon Building Products,
Incorporated, Series B,
Step up to 10.50% due
06/15/2007 275,000 204,875
Toll Corporation,
8.125% due 02/01/2009 200,000 185,500
-----------
455,300
BUSINESS SERVICES - 1.24%
Classic Cable, Incorporated,
9.875% due 08/01/2008 130,000 130,162
Consumers Packaging,
Incorporated, 9.75% due
02/01/2007 140,000 98,000
Doman Industries, Ltd.,
12.00% due 07/01/2004 200,000 208,250
Dura Operating Corporation,
9.00% due 05/01/2009 150,000 141,000
EOP Operating Limited
Partnership, 6.50% due
01/15/2004 1,795,000 1,711,856
Federal Express Corporation
Trust, 6.72% due
01/15/2022 997,502 901,423
Insight Midwest LP,
9.75% due 10/01/2009 60,000 61,950
Packaging Corporation
America, 9.625% due
04/01/2009 70,000 71,488
RCN Corporation,
Step up to 11.00% due
07/01/2008 325,000 213,687
Royster Clark, Incorporated,
10.25% due 04/01/2009 135,000 122,175
Silgan Holdings,
Incorporated, 9.00% due
06/01/2009 65,000 62,400
True Temper Sports,
Incorporated, 10.875% due
12/01/2008 400,000 382,000
Werner Holding Delaware,
Incorporated, 10.00% due
11/15/2007 60,000 58,800
---------
4,163,191
CHEMICALS - 1.47%
Acetex,
9.75% due 10/01/2003 250,000 227,500
Arco Chemical Company,
9.80% due 02/01/2020 120,000 122,400
Georgia Gulf Corporation,
10.375% due 11/01/2007 40,000 41,750
</TABLE>
The accompanying notes are an integral part of the financial statements.
181
<PAGE> 224
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
CHEMICALS - CONTINUED
Huntsman Corporation,
9.50% due 07/01/2007 $ 95,000 $ 90,013
ICI North America,
Incorporated, 8.875% due
11/15/2006 785,000 828,881
ICI Wilmington, Incorporated,
6.95% due 09/15/2004 2,735,000 2,666,543
Lyondell Chemical Company,
9.875% due 05/01/2007 320,000 328,000
Pioneer Americas Acquisition
Corporation, 9.25% due
06/15/2007 55,000 43,450
Sovereign Speciality
Chemicals, 9.50% due
08/01/2007 135,000 136,688
Texas Petrochemicals
Corporation, Series B,
11.125% due 07/01/2006 250,000 220,000
ZSC Specialty,
11.00% due 07/01/2009 225,000 232,312
----------
4,937,537
COAL - 0.12%
PL Coal Holdings Corporation,
Series B, 9.625% due
05/15/2008 400,000 394,000
----------
COMPUTERS & BUSINESS EQUIPMENT - 0.00%
Decisionone Corporation,
9.75% due 08/01/2007 100,000 375
----------
CONSTRUCTION MATERIALS - 0.07%
Nortek, Incorporated,
8.875% due 08/01/2008 55,000 52,250
9.25% due 03/15/2007 100,000 97,500
Pindo Deli Finance Mauritius,
Ltd., 10.75% due 10/01/2007 100,000 73,000
----------
222,750
CONSTRUCTION & MINING EQUIPMENT - 0.04%
Webb Delaware Corporation,
10.25% due 02/15/2010 150,000 145,875
----------
CRUDE PETROLEUM & NATURAL GAS - 0.86%
Enron Corporation,
6.75% due 09/01/2004 2,000,000 1,948,156
KN Energy, Incorporated,
6.65% due 03/01/2005 795,000 760,855
Tuboscope Vetco
International,
Incorporated, 7.50% due 200,000 166,000
02/15/2008
----------
2,875,011
DOMESTIC OIL - 0.62%
Conoco, Incorporated,
5.90% due 04/15/2004 $1,000,000 $ 954,670
6.95% due 04/15/2029 1,100,000 992,244
ICO, Incorporated, Series B
10.375% due 06/01/2007 95,000 87,875
Key Energy Services,
Incorporated, 14.00% due
01/15/2009 50,000 54,625
----------
2,089,414
DRUGS & HEALTH CARE - 3.24%
Alaris Medical, Incorporated,
Step up to 11.125% due
08/01/2008 275,000 113,094
Allegiance Corporation,
7.00% due 10/15/2026 4,000,000 3,884,680
Beckman Instruments,
Incorporated,
7.10% due 03/04/2003 240,000 229,687
7.45% due 03/04/2008 1,065,000 982,910
Beverly Enterprises,
9.00% due 02/15/2006 170,000 156,400
Columbia/HCA Healthcare
Corporation,
7.00% due 07/01/2007 5,000 4,463
7.25% due 05/20/2008 195,000 175,500
Fisher Scientific
International,
Incorporated, 9.00% due 190,000 182,400
02/01/2008
Healthsouth Corporation,
6.875% due 06/15/2005 2,000,000 1,731,600
Lifepoint Hospitals Holdings,
Incorporated, 10.75% due
05/15/2009 100,000 103,500
MEDIQ Life Support Services,
11.00% due 06/01/2008 200,000 80,000
Owens & Minor, Incorporated,
10.875% due 06/01/2006 225,000 228,937
Tenet Healthcare Corporation,
7.875% due 01/15/2003 850,000 824,500
Torchmark, Incorporated,
7.875% due 05/15/2023 2,000,000 1,874,800
Triad Hospitals,
11.00% due 05/15/2009 180,000 186,300
Universal Hospital Services,
Incorporated, 10.25% due
03/01/2008 120,000 83,400
----------
10,842,171
ELECTRICAL EQUIPMENT - 0.24%
Costilla Energy, Incorporated+,
10.25% due 10/01/2006 225,000 65,250
Energy Corporation of
America, Incorporated,
9.50% due 05/15/2007 375,000 262,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
182
<PAGE> 225
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
ELECTRICAL EQUIPMENT - CONTINUED
Fairchild Semiconductor
Corporation,
10.125% due 03/15/2007 $ 275,000 $ 280,500
10.375% due 10/01/2007 65,000 66,788
Wesco Distribution,
Incorporated, 9.125% due
06/01/2008 150,000 141,000
----------
816,038
ELECTRIC UTILITIES - 1.87%
Baltimore Gas & Electric
Company, 6.125% due
07/01/2003 1,000,000 972,620
Calpine Corporation,
8.75% due 07/15/2007 150,000 145,677
Cinergy Corporation,
6.125% due 04/15/2004 2,000,000 1,879,148
Cleveland Electric
Illuminating Company, 7.19%
due 07/01/2000 1,010,000 1,008,819
L-3 Communications
Corporation, 8.00% due
08/01/2008 160,000 145,200
Northern States Power
Company, 6.375% due
04/01/2003 1,000,000 977,360
Pacific Gas & Electric
Company, 6.25% due
08/01/2003 1,000,000 973,020
WMX Technologies,
Incorporated, 7.00% due
10/15/2006 175,000 153,046
----------
6,254,890
ELECTRONICS - 0.13%
Advanced Micro Devices,
Incorporated, 11.00% due
08/01/2003 185,000 182,225
SCG Holding & Semiconductor
Company, 12.00% due
08/01/2009 235,000 250,275
----------
432,500
FINANCIAL SERVICES - 10.40%
AAG Holding, Incorporated,
6.875% due 06/01/2008 1,710,000 1,499,431
Allstate Financing,
7.83% due 12/01/2045 565,000 518,726
American Financial Group,
Incorporated, 7.125% due
04/15/2009 340,000 304,545
American General Finance
Corporation, 6.54% due
08/12/2002 1,000,000 983,180
Amerus Capital,
8.85% due 02/01/2027 $1,000,000 $ 835,100
Amvescap PLC,
6.60% due 05/15/2005 2,000,000 1,888,620
Arcadia Financial, Ltd.,
11.50% due 03/15/2007 40,000 41,200
Associates Corporation of
North America, 5.75% due
11/01/2003 610,000 581,824
BanPonce Financial
Corporation,
6.75% due 08/09/2001 2,150,000 2,133,638
6.80% due 12/21/2005 260,000 247,234
Bear Stearns Capital Trust,
Incorporated, 7.00% VR due
01/15/2027 1,000,000 981,854
Beneficial Corporation,
8.40% due 05/15/2008 350,000 368,389
Cigna Corporation,
7.40% due 05/15/2007 1,300,000 1,267,604
7.875% due 05/15/2027 790,000 757,073
Commercial Credit Group,
Incorporated, 7.375% due
04/15/2005 1,000,000 988,150
Dime Capital Trust,
9.33% due 05/06/2027 1,350,000 1,290,519
Donaldson Lufkin & Jenrette,
5.625% due 02/15/2016 1,000,000 977,990
Equitable Companies,
Incorporated, 7.00% due
04/01/2028 770,000 690,875
Equitable Life Assured
Society, 7.70% due
12/01/2015 680,000 665,230
Ford Credit Auto Owner Trust,
5.81% due 03/15/2002 600,000 597,372
General Electric Capital
Corporation, 8.88% due
06/18/2003 600,000 632,724
Globalstar LP/Globalstar
Capital, 10.75% due
11/01/2004 250,000 160,000
H.F. Ahmanson & Company,
7.875% due 09/01/2004 525,000 530,581
International Lease Finance
Corporation, 6.00% due
06/15/2003 300,000 289,095
Iridium Operating LLC/Iridium
Capital+, 11.25% due
07/15/2005 300,000 15,000
Japan Finance Corporation,
8.70% due 07/30/2001 1,500,000 1,539,720
KFW International Finance,
Incorporated, 9.125% due
05/15/2001 1,000,000 1,029,610
</TABLE>
The accompanying notes are an integral part of the financial statements.
183
<PAGE> 226
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
FINANCIAL SERVICES - CONTINUED
MBNA America Bank,
6.75% due 03/15/2008 $ 700,000 $ 644,518
Olympic Financial, Ltd.,
11.50% due 03/15/2007 100,000 104,000
Private Export Funding
Corporation, 6.62% due
10/01/2005 2,000,000 1,969,340
RBF Finance Company,
11.375% due 03/15/2009 205,000 219,350
Southern Company Capital
Trust I, 8.19% due
02/01/2037 1,000,000 944,390
Sun Canada Financial Company,
6.625% due 12/15/2007 650,000 607,543
7.25% due 12/15/2015 1,500,000 1,422,120
Sunamerica, Incorporated,
8.125% due 04/28/2023 1,000,000 1,020,480
Tembec Finance Corporation,
9.875% due 09/30/2005 100,000 103,375
Toyota Motor Credit
Corporation, 5.625% due
11/13/2003 1,600,000 1,523,408
United States Bancorp Oregon,
7.50% due 06/01/2026 2,774,000 2,775,609
United States West Capital
Funding, Incorporated,
6.25% due 07/15/2005 1,395,000 1,320,200
Western Financial Savings,
8.875% due 08/01/2007 400,000 370,000
-----------
34,839,617
FOOD & BEVERAGES - 1.36%
Aurora Foods, Incorporated,
8.75% due 07/01/2008 100,000 95,250
9.875% due 02/15/2007 50,000 50,687
B & G Foods Incications
Corporation, 9.625% due
08/01/2007 200,000 177,500
Chiquita Brands
International,
Incorporated, 10.00% due
06/15/2009 115,000 83,088
Del Monte Foods Company,
Step up to 12.50% due
12/15/2007 205,000 157,850
Disco SA,
9.875% due 05/15/2008 145,000 126,513
Nash Finch Company,
8.50% due 05/01/2008 250,000 206,875
Seagram, Joseph E & Sons,
Incorporated,
6.625% due 12/15/2005 1,000,000 954,400
7.50% due 12/15/2018 1,480,000 1,402,270
Tricon Global Restaurants,
Incorporated, 7.65% due
05/15/2008 $ 75,000 $ 70,411
Whitman Corporation,
6.375% due 05/01/2009 1,360,000 1,234,023
-----------
4,558,867
FOREST PRODUCTS - 0.00%
Tembec Industries,
Incorporated, 8.625% due
06/30/2009 10,000 10,000
-----------
FURNITURE & FIXTURES - 0.04%
Mattress Discounters
Corporation, 12.625% due
07/15/2007 150,000 146,625
-----------
GAS & PIPELINE UTILITIES - 0.62%
Kelley Oil & Gas Corporation,
14.00% due 04/15/2003 165,000 161,700
Sonat, Incorporated,
6.875% due 06/01/2005 2,000,000 1,930,420
-----------
2,092,120
HOMEBUILDERS - 0.06%
Engle Homes, Incorporated,
9.25% due 02/01/2008 90,000 81,000
Standard Pacific Corporation,
8.50% due 06/15/2007 115,000 110,400
-----------
191,400
HOUSEHOLD PRODUCTS - 0.34%
Procter & Gamble-ESOP,
Series A, 9.36%
due 01/01/2021 1,000,000 1,154,120
---------
INDUSTRIAL MACHINERY - 0.01%
Numatics, Incorporated,
9.625% due 04/01/2008 25,000 18,750
---------
INDUSTRIALS - 1.33%
Alaris Medical, Incorporated,
9.75% due 12/01/2006 100,000 86,500
Cincinnati Milacron,
Incorporated, 7.875% due
05/15/2000 870,000 870,195
Federal Mogul Corporation,
7.50% due 01/15/2009 270,000 239,314
Frontiervision Holdings LP,
Step up to 11.875% due
09/15/2001 125,000 111,250
Gaylord Container
Corporation, 9.375% due
06/15/2007 200,000 185,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
184
<PAGE> 227
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
INDUSTRIALS - CONTINUED
News America Holdings,
Incorporated, 9.25% due
02/01/2013 $ 2,645,000 $ 2,878,501
Prestolite Electric,
Incorporated, 9.625% due
02/01/2008 100,000 78,000
-----------
4,449,260
INSURANCE - 3.07%
Amerus Life Holdings,
Incorporated, 6.95% due
06/15/2005 715,000 649,937
Florida Windstorm
Underwriting, 7.125% due
02/25/2019 3,720,000 3,406,106
Jackson National Life
Insurance Company, 8.15%
due 03/15/2027 1,000,000 989,320
Liberty Mutual Insurance
Company,
8.20% due 05/04/2007 550,000 548,581
8.50% due 05/15/2025 700,000 665,336
Lumbermans Mutual Casualty
Company, 9.15% due
07/01/2026 675,000 646,151
Ohio National Life Insurance
Company, 8.50% due
05/15/2026 1,150,000 1,152,231
Security Benefit Life
Company, 8.75% due
05/15/2016 1,350,000 1,333,377
Zurich Reinsurance Centre
Holdings, Incorporated,
7.125% due 10/15/2023 1,000,000 874,640
-----------
10,265,679
LEISURE TIME - 0.32%
AMC Entertainment,
Incorporated,
9.50% due 03/15/2009 -
02/01/2011 425,000 375,437
Aztar Corporation,
8.875% due 05/15/2007 200,000 192,000
Loews Ciniplex Entertainment
Corporation, 8.875% due
08/01/2008 200,000 177,000
Station Casinos,
Incorporated, 8.875% due
12/01/2008 250,000 238,125
Time Warner Telecom LLC,
9.75% due 07/15/2008 100,000 102,500
-----------
1,085,062
METAL & METAL PRODUCTS - 0.05%
Neenah Corporation,
Series B, 11.125% due
05/01/2007 $ 150,000 $ 138,750
Series F, 11.125% due
05/01/2007 30,000 27,750
-----------
166,500
NEWSPAPERS - 0.31%
News America Holdings,
Incorporated, 8.50% due
02/15/2005 1,000,000 1,031,110
-----------
PAPER - 1.20%
Boise Cascade Corporation,
9.90% due 10/01/2001 1,000,000 1,031,390
Boise Cascade Office Products
Company, 7.05% due
05/15/2005 2,800,000 2,577,932
Domtar, Incorporated,
9.50% due 08/01/2016 75,000 80,805
Grupo Industrial Durango
GIDUSA, 12.625% due
08/01/2003 120,000 119,400
Repap New Brunswick,
Incorporated, 10.625% due
04/15/2005 225,000 209,250
-----------
4,018,777
PETROLEUM SERVICES - 1.17%
Newfield Exploration Company,
7.45% due 10/15/2007 1,045,000 950,574
Petroleos Mexicanos,
8.85% due 09/15/2007 250,000 239,375
Plains Resources,
Incorporated,
10.25% due 03/15/2006 225,000 219,125
Ultramar Corporation,
8.00% due 03/15/2005 1,000,000 989,790
YPF Sociedad Anonima,
10.00% due 11/02/2028 1,400,000 1,528,992
---------
3,927,856
PUBLISHING - 0.18%
Scholastic Corporation,
7.00% due 12/15/2003 300,000 291,807
Sullivan Graphics,
Incorporated, 12.75% due
08/01/2005 300,000 310,500
---------
602,307
</TABLE>
The accompanying notes are an integral part of the financial statements.
185
<PAGE> 228
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
RETAIL GROCERY - 0.15%
Stater Brothers Holdings,
Incorporated, 10.75% due
08/15/2006 $ 250,000 $ 253,125
Vlasic Food International,
Incorporated, 10.25% due
07/01/2009 250,000 238,125
----------
491,250
RETAIL TRADE - 0.16%
Duane Reade, Incorporated,
9.25% due 02/15/2008 400,000 391,000
Guitar Center Management
Company, Incorporated,
11.00% due 07/01/2006 137,000 134,260
----------
525,260
SANITARY SERVICES - 0.45%
Allied Waste North America,
Incorporated, 7.625% due
01/01/2006 105,000 94,237
USA Waste Services,
Incorporated, Step up to
6.125% due 07/15/2001 1,500,000 1,427,625
----------
1,521,862
SOFTWARE - 0.34%
Concentric Network
Corporation, 12.75% due
12/15/2007 300,000 315,750
Exodus Communications,
Incorporated, 11.25% due
07/01/2008 200,000 206,500
Psi Net, Incorporated,
10.00% due 02/15/2005 250,000 248,125
11.50% due 11/01/2008 75,000 78,750
Verio, Incorporated,
10.375% due 04/01/2005 90,000 90,900
11.25% due 12/01/2008 175,000 183,750
---------
1,123,775
STEEL - 0.19%
Acindar Industria, Argentina,
11.25% due 02/15/2004 75,000 58,500
Alaska Steel Corporation,
7.875% due 02/15/2009 80,000 75,400
9.125% due 12/15/2006 75,000 76,125
Bayou Steel Corporation,
9.50% due 05/15/2008 50,000 46,688
CSN Iron SA,
9.125% due 06/01/2007 140,000 116,550
LTV Corporation,
11.75% due 11/15/2009 155,000 161,200
Weirton Steel Corporation,
11.375% due 07/01/2004 100,000 96,500
----------
630,963
TELECOMMUNICATIONS SERVICES - 1.57%
Alaska Communications
Holdings, 9.375% due
05/15/2009 100,000 96,750
American Media Operations,
Incorporated, 10.25% due
05/01/2009 100,000 101,250
Bresnan Communications Group,
9.25% due 02/01/2009 125,000 86,250
BTI Telecom Corporation,
10.50% due 09/15/2007 175,000 161,000
Charter Communication Holding
Llc, 8.625% due 04/01/2009 350,000 323,312
Covad Communications Group,
Incorporated, 12.50% due
02/15/2009 150,000 156,375
Crown Castle International
Corporation, Step up to
10.625% due 11/15/2007 175,000 131,469
Frontiervision LP/Capital,
Series B, Step up to
11.875% due 09/15/2007 90,000 80,550
GCI, Incorporated,
9.75% due 08/01/2007 550,000 504,625
GST Telecommunications,
Incorporated, 12.75% due
11/15/2007 210,000 199,237
Innova SA,
12.875% due 04/01/2007 200,000 178,000
ITC Deltacom, Incorporated,
9.75% due 11/15/2008 130,000 131,300
KMC Telecom Holdings,
Incorporated, Step up to
12.50% due 02/15/2008 500,000 285,000
NTL Communications
Corporation, Series B,
Step up to 12.375% due
10/01/2008 425,000 297,500
Rogers Cantel, Incorporated,
9.375% due 06/01/2008 100,000 104,000
RSL Communications PLC,
12.00% due 11/01/2008 250,000 251,875
Satelites Mexicanos
SA de CV,
10.125% due 11/01/2004 225,000 153,000
Tele-Communications,
Incorporated,
9.25% due 04/15/2002 1,500,000 1,574,445
9.65% due 10/01/2003 426,400 448,330
----------
5,264,268
TELEPHONE - 2.89%
Alestra SA,
12.125% due 05/15/2006 250,000 251,250
</TABLE>
The accompanying notes are an integral part of the financial statements.
186
<PAGE> 229
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
TELEPHONE - CONTINUED
Allbritton Communications
Company, 8.875% due
02/01/2008 $ 275,000 $ 261,250
Bellsouth Savings,
9.19% due 07/01/2003 505,640 528,479
Benedek Communications
Corporation, Step up to
13.25% due 05/15/2006 185,000 166,038
Comcast Cable Communications,
8.50% due 05/01/2027 1,100,000 1,170,180
Compania De
Telecomunicaciones,
8.375% due 01/01/2006 1,000,000 990,443
7.625% due 07/15/2006 1,000,000 958,840
E Spire Communications,
Incorporated,
Step up to 10.625% due
07/01/2008 75,000 28,688
Step up to 12.75% due
04/01/2006 200,000 94,000
GTE Corporation,
8.75% due 11/01/2021 1,000,000 1,099,340
Hyperion Telecommunications,
Incorporated, Series B
12.25% due 09/01/2004 75,000 80,250
Step up to 13.00% due
04/15/2003 175,000 155,750
Intermedia Communications,
Incorporated,
8.60% due 06/01/2008 80,000 73,800
8.875% due 11/01/2007 350,000 325,500
Step up to 12.25% due
03/01/2009 165,000 99,000
McleodUSA, Incorporated,
9.50% due 11/01/2008 150,000 150,375
MGC Communications,
Incorporated, 13.00% due
10/01/2004 150,000 149,625
Nextel Communications,
Incorporated, Step up to
9.75% due 10/31/2007 925,000 659,062
Nextlink Communications,
Step up to 9.45% due
04/15/2008 400,000 254,000
Paging Network, Incorporated,
10.125% due 08/01/2007 200,000 67,000
Price Communications Wireless,
Incorporated, 9.125% due
12/15/2006 80,000 81,000
Telecommunications
Techniques, 9.75% due
05/15/2008 225,000 204,750
Viatel, Incorporated,
11.25% due 04/15/2008 225,000 223,875
World Common, Incorporated,
7.55% due 04/01/2004 1,575,000 1,593,490
----------
9,665,985
TOYS, AMUSEMENTS & SPORTING GOODS - 0.06%
Hollywood Casino Corporation,
11.25% due 05/01/2007 200,000 209,000
------------
TRANSPORTATION - 0.92%
Honda Auto Lease Trust,
6.65% due 07/15/2005 2,000,000 1,993,080
Iron Mountain, Incorporated,
8.75% due 09/30/2009 220,000 211,200
Johnstown America Industry,
Incorporated,
11.75% due 08/15/2005 200,000 203,500
K & F Industry, Incorporated,
9.25% due 10/15/2007 175,000 168,000
Southern Railway Company,
8.75% due 10/15/2003 470,000 488,678
------------
3,064,458
TOTAL CORPORATE BONDS
(Cost: $164,660,861) $155,724,873
------------
MUNICIPAL BONDS - 3.72%
ALABAMA - 0.28%
Huntsville Alabama Solid
Waste Disposal, 5.95% due
10/01/2003 1,000,000 956,900
------------
ARIZONA - 0.28%
Phoenix Arizona Civic
Improvement Corporation,
6.30% due 07/01/2008 1,010,000 923,564
------------
MARYLAND - 0.21%
Baltimore Maryland,
6.375% due 10/15/2002 705,000 698,535
------------
MICHIGAN - 0.36%
Detroit Michigan Downtown
Development Authority,
6.20% due 07/01/2008 1,335,000 1,220,310
------------
CALIFORNIA - 1.58%
Los Angeles County California
Pension,
8.49% due 06/30/2004 500,000 522,475
8.62% due 06/30/2006 1,500,000 1,593,885
Orange County California
Pension Obligation, 7.36%
due 09/01/2010 2,000,000 1,948,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
187
<PAGE> 230
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
CALIFORNIA - CONTINUED
Southern California Public
Power Authority Project,
6.93% due 05/15/2017 $ 1,300,000 $ 1,229,735
-----------
5,294,095
FLORIDA - 0.32%
Miami Beach Florida
Redevelopment Agency Tax,
8.95% due 12/01/2022 1,000,000 1,064,050
-----------
PENNSYLVANIA - 0.55%
Philadelphia Pennsylvania
Authority, 5.59% due
04/15/2005 2,000,000 1,844,480
-----------
SOUTH CAROLINA - 0.14%
South Carolina Public
Service Authority, 6.97%
due 01/01/2005 475,000 466,788
-----------
TOTAL MUNICIPAL BONDS
(Cost: $13,623,793) $12,468,722
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS - 2.02%
Asset Securitization
Corporation, 6.66% due
02/14/2041 2,110,000 2,049,886
Chase Commercial Mortgage
Securities Corporation,
6.39% due 11/18/2008 2,500,000 2,326,775
Credit Suisse First Boston,
6.52% due 07/17/2007 530,000 507,904
First Union-Lehman Brothers
Commercial Mortgage, 6.60%
due 05/18/2007 1,950,000 1,868,822
-----------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost: $7,148,744) $6,753,387
----------
ASSET BACKED SECURITIES - 1.42%
AESOP Funding II LLC,
6.22% due 10/20/2001 1,600,000 1,598,528
6.40% due 10/20/2003 1,000,000 983,440
Series 1998-1, Class A,
6.14% due 05/20/2006 600,000 571,422
Carco Auto Loan Master Trust,
Series 1997 1, Class A,
6.689% due 08/15/2004 631,320 630,683
Discover Card Master Trust 1,
Series 97 2, Class A,
6.792% due 04/16/2010 1,000,000 984,560
----------
TOTAL ASSET BACKED SECURITIES
(Cost: $4,871,055) $4,768,633
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 15.18%
$50,820,360 Navigator Securities Lending Trust,
5.86% $50,820,360
-----------
REPURCHASE AGREEMENTS - 0.59%
$1,978,000 Repurchase Agreement with Lehman
Brothers dated 12/31/1999 at
2.50%, to be repurchased at
$1,978,412 on 01/03/2000,
collateralized by $12,075,000
U.S. Treasury Strip, 6.74% due
11/15/2027 (valued at $2,037,340,
including interest). $1,978,000
----------
TOTAL INVESTMENTS (INVESTMENT QUALITY
BOND TRUST) (Cost: $353,079,496) $334,858,933
============
</TABLE>
DIVERSIFIED BOND TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RIGHTS - 0.00% *
TELECOMMUNICATIONS SERVICES - 0.00%
TALK.com, Incorporated 365 $ 0
----
TOTAL RIGHTS
(Cost: $0) $ 0
----
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 19.77%
U.S. TREASURY BONDS - 1.46%
7.875% due 02/15/2021 $ 3,500,000 $ 3,912,335
-----------
U.S. TREASURY NOTES - 18.31%
5.25% due 08/15/2003 2,500,000 2,410,550
5.625% due 02/15/2006 4,000,000 3,826,880
6.25% due 02/15/2003 16,000,000 15,952,480
6.25% due 02/15/2007 10,250,000 10,085,078
6.875% due 05/15/2006 8,500,000 8,650,110
</TABLE>
The accompanying notes are an integral part of the financial statements.
188
<PAGE> 231
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY NOTES - CONTINUED
7.25% due 05/15/2004 $ 4,750,000 $ 4,893,260
7.50% due 11/15/2001 3,250,000 3,320,590
-----------
49,138,948
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $55,614,426) $53,051,283
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 31.52%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 18.19%
5.125% due 02/13/2004 3,000,000 2,820,480
5.25% due 01/15/2009 3,000,000 2,646,090
5.625% due 05/14/2004 5,000,000 4,778,100
5.875% due 04/23/2004 3,000,000 2,868,750
6.00% due 05/15/2008 -
05/01/2029 13,531,865 12,664,355
6.50% due 06/01/2014 -
06/01/2029 20,983,298 19,838,488
7.50% due 10/01/2010 -
09/01/2029 3,182,578 3,176,462
-----------
48,792,725
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 13.33%
6.00% due 05/15/2029 -
06/15/2029 4,508,461 4,099,859
6.50% due 05/15/2029 -
07/15/2029 18,312,968 17,185,438
7.00% due 04/15/2029 -
10/15/2029 3,556,201 3,433,939
8.00% due 10/15/2026 -
11/15/2029 10,952,218 11,061,741
-----------
35,780,977
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost: $87,894,563) $84,573,702
-----------
CORPORATE BONDS - 22.62%
AUTO SERVICES - 0.28%
Hertz Corporation,
7.375% due 06/15/2001 750,000 753,219
-----------
BANKING - 0.26%
Bank One Corporation,
5.625% due 02/17/2004 750,000 703,545
-----------
BUSINESS SERVICES - 0.68%
Williams Holdings,
Incorporated, 6.50% due
12/01/2008 2,000,000 1,832,820
-----------
DRUGS & HEALTH CARE - 0.29%
McKesson Corporation,
6.30% due 03/01/2005 825,000 767,637
-----------
ELECTRIC UTILITIES - 0.60%
Michigan Consolidated Gas
Company, 6.45% due
06/30/2008 750,000 686,253
WMX Technologies,
Incorporated,
6.375% due 12/01/2003 750,000 675,667
6.70% due 05/01/2001 250,000 241,733
----------
1,603,653
FINANCIAL SERVICES - 4.87%
Associates Corporation of
North America,
5.75% due 11/01/2003 2,000,000 1,907,620
6.25% due 11/01/2008 750,000 691,785
Bankamerica Corporation,
5.875% due 02/15/2009 750,000 667,830
Chase Manhattan Corporation,
6.375% due 04/01/2008 750,000 697,845
Ford Motor Credit Company,
5.80% due 01/12/2009 2,000,000 1,772,520
6.70% due 07/16/2004 750,000 734,062
7.375% due 10/28/2009 1,000,000 987,250
Goldman Sachs Group,
Incorporated, 6.65% due
05/15/2009 750,000 698,100
Household Financial
Corporation, 6.40% due
06/17/2008 3,000,000 2,773,380
Lehman Brothers Holdings,
Incorporated, 6.625% due
02/05/2006 750,000 708,570
Reliastar Financial
Corporation, 8.00% due
10/30/2006 750,000 754,185
United States West Capital
Funding, Incorporated,
6.375% due 07/15/2008 750,000 684,653
----------
13,077,800
FOOD & BEVERAGES - 0.28%
Delta Beverage Group,
Incorporated, 9.75% due
12/15/2003 750,000 750,000
----------
HOUSEHOLD APPLIANCES - 0.27%
Philips Electronics NV,
7.20% due 06/01/2026 750,000 731,678
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
189
<PAGE> 232
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
INDUSTRIALS - 9.32%
British Sky Broadcasting
Group, 8.20% due 07/15/2009
$ 1,750,000 $ 1,682,039
CBS, Incorporated,
7.15% due 05/20/2005 2,000,000 1,962,260
Columbia Gas Systems,
Incorporated, 6.39% due
11/28/2000 750,000 744,547
Cox Radio, Incorporated,
6.375% due 05/15/2005 1,000,000 932,660
Crown Castle International
Corporation, Step up to
10.375% due 05/15/2011 3,250,000 2,031,250
Delta Air Lines, Incorporated,
7.70% due 12/15/2005 1,250,000 1,229,345
Federal Mogul Corporation,
7.875% due 07/01/2010 750,000 671,790
Fox / Liberty Networks LLC,
Step up to 9.75% due
08/15/2007 1,500,000 1,200,000
Freeport McMoran Copper &
Gold, 7.20% due 11/15/2026
500,000 319,615
Home Products International,
Incorporated, 9.625% due
05/15/2008 750,000 684,375
International Business
Machines Corporation,
5.375% due 02/01/2009 750,000 656,850
McDermott, Incorporated,
9.375% due 03/15/2002 1,125,000 1,124,314
Nabisco, Incorporated,
6.375% due 01/31/2000 750,000 696,540
7.55% due 06/15/2015 2,000,000 1,890,622
Omnipoint Corporation,
11.625% due 08/15/2006 2,250,000 2,385,000
Paracelsus Healthcare
Corporation, 10.00% due
08/15/2006 500,000 290,000
Radio One, Incorporated,
7.00% due 05/15/2004 125,000 133,125
Salton, Incorporated,
10.75% due 12/15/2005 1,000,000 1,022,500
Tekni Plex, Incorporated,
9.25% due 03/01/2008 750,000 761,250
Time Warner, Incorporated,
7.25% due 10/15/2017 2,000,000 1,866,880
8.18% due 08/15/2007 1,000,000 1,027,760
Ziff Davis, Incorporated,
8.50% due 05/01/2008 1,000,000 1,020,000
Zilog, Incorporated,
9.50% due 03/01/2005 750,000 682,500
-----------
25,015,222
PAPER - 0.27%
Fort James Corporation,
6.875% due 09/15/2007 $ 750,000 $ 712,005
-----------
PETROLEUM SERVICES - 0.27%
Amerada Hess Corporation,
7.375% due 10/01/2009 750,000 731,932
-----------
SANITARY SERVICES - 0.38%
Allied Waste North America,
Incorporated, 10.00% due
08/01/2009 1,125,000 1,006,875
-----------
TELECOMMUNICATIONS SERVICES - 1.40%
Nextel Communications,
Incorporated,
9.375% due 11/15/2009 1,000,000 980,000
12.00% due 11/01/2008 2,250,000 2,520,000
Spectrasite Holdings,
Incorporated, Step up to
11.25% due 04/15/2009 500,000 267,500
-----------
3,767,500
TELEPHONE - 3.45%
American Telephone &
Telegraph Corporation,
5.625% due 03/15/2004 750,000 709,268
Cable & Wireless
Communication,
6.625% due 03/06/2005 1,000,000 987,570
6.75% due 03/06/2008 2,000,000 1,970,360
Liberty Media Corporation,
7.875% due 07/15/2009 1,750,000 1,741,932
Nextlink Communications,
Incorporated, 10.50% due
12/01/2009 1,500,000 1,522,500
Voicestream Wire,
10.375% due 11/15/2009 2,250,000 2,317,500
-----------
9,249,130
TOTAL CORPORATE BONDS
(Cost: $62,444,257) $60,703,016
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.92%
California Infrastructure
PG&E-1, Series 1997-1, Class A6
6.32% due 09/25/2005 750,000 737,610
Merrill Lynch Mortgage
Investments, Incorporated,
7.12% due 06/18/2029 750,000 736,103
</TABLE>
The accompanying notes are an integral part of the financial statements.
190
<PAGE> 233
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -
CONTINUED
PP&L Transition Bond Company
LLC, Series 1999-1, Class
AB, 7.15% due 06/25/2009
$1,000,000 $ 994,810
----------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost: $2,492,557) $2,468,523
----------
ASSET BACKED SECURITIES - 2.56%
Airplanes Passthru Trust,
8.15% due 03/15/2019 1,458,571 1,355,406
Citibank Credit Card Master
Trust I, 5.50% due
02/15/2006 1,500,000 1,415,625
EQCC Home Equity Loan Trust,
7.067% due 11/25/2025 750,000 742,260
Government Lease Trust,
6.18% due 05/18/2005 2,000,000 1,941,080
Sears Credit Account Master
Trust II, 5.65% due
03/15/2009 1,500,000 1,419,840
----------
TOTAL ASSET BACKED SECURITIES
(Cost: $7,145,562) $6,874,211
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SHORT TERM INVESTMENTS - 19.48%
$52,273,926 Navigator Securities Lending Trust,
5.86% $ 52,273,926
------------
REPURCHASE AGREEMENTS - 3.13%
$8,384,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 2.50%, to be
repurchased at $8,385,747 on
01/03/2000, collateralized by
$7,900,000 U.S. Treasury Bonds,
7.25% due 08/15/2022 (valued at
$8,551,750, including interest) $ 8,384,000
------------
TOTAL INVESTMENTS (DIVERSIFIED BOND
TRUST) (Cost: $276,249,291) $268,328,661
============
</TABLE>
U.S. GOVERNMENT SECURITIES TRUST
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 5.62%
U.S. TREASURY BONDS - 0.78%
5.25% due 11/15/2028 *** $ 2,000,000 $ 1,647,500
6.375% due 08/15/2027 *** 2,100,000 2,016,987
6.625% due 02/15/2027 *** 500,000 495,545
-----------
4,160,032
U.S. TREASURY NOTES - 4.84%
4.75% due 02/15/2004 *** 11,400,000 10,753,392
4.75% due 11/15/2008 *** 12,515,000 11,038,605
5.25% due 05/31/2001 1,500,000 1,480,785
5.50% due 05/15/2009 *** 2,500,000 2,329,300
-----------
25,602,082
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $31,171,872) $29,762,114
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 62.64%
FEDERAL HOME LOAN BANK - 2.07%
5.80% due 09/02/2008 *** 8,350,000 7,675,487
5.94% due 06/13/2000 *** 3,300,000 3,289,176
----------
10,964,663
FEDERAL HOME LOAN MORTGAGE CORPORATION - 16.15%
6.00% due 10/01/2010 -
12/01/2028 *** 19,277,198 17,669,722
6.247% due 03/17/2021 *** 11,000,000 10,274,330
6.50% TBA** 17,500,000 16,499,175
6.50% due 07/01/2006 -
12/01/2010 *** 2,453,846 2,402,307
7.00% due 12/01/2004 -
04/15/2021 *** 22,371,863 22,196,465
7.50% due 05/01/2007 1,876,788 1,891,596
8.25% due 07/01/2006 79,077 79,887
9.00% due 10/01/2017 -
11/01/2020 *** 4,242,198 4,382,317
9.50% due 08/01/2020 1,113,092 1,172,086
10.00% due 05/01/2005 *** 5,873,781 6,102,150
10.50% due 06/01/2020 *** 2,193,382 2,343,475
11.75% due 10/01/2009 -
12/01/2013 81,396 88,417
12.00% due 07/01/2020 337,774 376,618
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 36.55%
6.00% TBA ** 1,200,000 1,097,616
6.50% TBA ** 25,700,000 24,214,026
6.50% due 12/01/2003 -
06/01/2029 23,321,662 22,106,978
</TABLE>
The accompanying notes are an integral part of the financial statements.
191
<PAGE> 234
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - CONTINUED
6.527% due 05/25/2030 *** $ 9,500,000 $ 8,803,080
6.654% due 12/28/1999 *** 8,645,584 8,269,637
6.783% due 01/17/2003 1,412,879 1,411,438
7.00% TBA ** 77,500,00 74,932,425
7.00% due 07/01/2022 -
12/01/2099 20,919,461 20,242,986
7.50% TBA ** 21,000,000 20,763,750
8.00% TBA ** 2,000,000 2,016,240
8.00% due 08/01/2004 -
10/01/2024 7,084 7,141
8.25% due 09/01/2008 125,485 128,548
8.50% due 02/01/2009 28,925 29,902
8.75% due 08/01/2009 -
10/01/2011 1,202,047 1,240,281
9.00% due 05/01/2021 -
05/01/2027 579,083 603,784
10.00% due 04/01/2016 -
09/01/2020 663 713
10.50% due 03/01/2016 2,698 2,715
11.50% due 09/15/2013 -
09/01/2019 1,062,224 1,174,548
11.75% due 12/01/2015 56,872 63,003
12.00% due 01/01/2013 -
04/20/2016 2,552,971 2,835,003
12.50% due 01/01/2013 -
09/20/2015 1,512,841 1,688,021
13.00% due 11/15/2015 856,136 964,822
13.50% due 11/15/2014 450,745 514,749
14.50% due 11/15/2014 328,376 379,067
------------
193,490,473
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 7.06%
7.50% TBA ** 20,000,000 19,775,000
7.50% due 02/15/2007 -
12/15/2027 14,826,816 14,663,131
8.00% due 10/15/2005 6,476 6,593
9.00% due 02/20/2016 -
10/20/2017 2,675,732 2,805,756
9.50% due 09/15/2020 85,097 90,319
11.00% due 09/15/2015 9,818 10,815
------------
37,351,614
STUDENT LOAN MARKETING
ASSOCIATION - 0.81%
7.50% due 03/08/2000 *** 4,300,000 4,305,375
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost: $344,328,274) $331,590,670
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------ -----
<S> <C>
SHORT TERM INVESTMENTS - 19.96%
Consolidation Coal Company,
$17,000,000 6.52% due 01/19/2000 $ 16,944,580
Darden Restaurants, Incorporated,
15,400,000 6.40% due 01/19/2000 15,350,720
GATX Capital Corporation
16,000,000 6.47% due 01/19/2000 15,948,240
Tennessee Gas Pipe
24,000,000 6.40% due 01/19/2000 23,923,200
Tyco International Gp Sa
17,000,000 6.52% due 01/19/2000 16,944,580
Usec, Incorporated
16,586,000 6.52% due 01/19/2000 16,531,930
------------
$105,643,250
REPURCHASE AGREEMENTS - 11.78%
$50,000,000 Repurchase Agreement with Dillon
Read dated 12/31/1999 at 3.00%,
to be repurchased at $50,012,500
on 01/03/2000, collateralized by
$47,059,000 U.S. Treasury Bonds,
7.25% due 08/15/2022 (valued
at $51,000,191, including
interest). *** $ 50,000,000
12,383,000 Repurchase Agreement with State
Street Bank & Trust Company dated
12/31/1999 at 3.00%, to be
repurchased at $12,386,100 on
01/03/2000, collateralized by
$10,160,000 U.S. Treasury Bonds,
8.875% due 08/15/2017 (valued
at $12,636,500, including
interest). *** 12,383,000
------------
$ 62,383,000
TOTAL INVESTMENTS (U.S. GOVERNMENT
SECURITIES TRUST) (Cost: $543,526,395) $529,379,034
============
</TABLE>
MONEY MARKET TRUST
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 23.21%
U.S. TREASURY BILLS - 23.21%
4.685% due 02/10/2000 $25,000,000 $24,869,862
4.71% due 02/17/2000 20,000,000 19,877,017
4.78% due 03/09/2000 30,000,000 29,729,133
4.80% due 03/09/2000 25,000,000 24,773,334
4.87% due 02/17/2000 35,000,000 34,777,468
4.935% due 03/02/2000 50,000,000 49,581,896
4.965% due 02/03/2000 20,000,000 19,908,975
</TABLE>
The accompanying notes are an integral part of the financial statements.
192
<PAGE> 235
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
U.S. TREASURY BILLS - CONTINUED
5.065% due 02/10/2000 $ 25,000,000 $ 24,859,306
5.14% due 04/27/2000 23,950,000 23,549,915
------------
251,926,906
TOTAL U.S. TREASURY OBLIGATIONS
(Cost: $251,926,906) $251,926,906
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 39.36%
FEDERAL HOME LOAN BANK - 11.00%
5.70% due 02/09/2000 40,000,000 39,753,000
5.72% due 02/16/2000 50,000,000 49,634,556
5.863% due 06/09/2000 15,000,000 15,000,000
5.913% due 01/21/2000 15,000,000 15,000,000
------------
119,387,556
FEDERAL HOME LOAN MORTGAGE CORPORATION - 12.99%
5.51% due 02/03/2000 50,000,000 49,747,458
5.60% due 02/01/2000 50,000,000 49,758,889
5.61% due 02/04/2000 41,750,000 41,528,795
------------
141,035,142
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 15.37%
5.05% due 02/04/2000 30,000,000 29,856,917
5.52% due 01/26/2000 -
02/17/2000 97,700,000 97,156,816
5.70% due 02/09/2000 40,000,000 39,753,000
------------
166,766,733
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost: $427,189,431) $427,189,431
------------
FOREIGN GOVERNMENT OBLIGATIONS - 8.34%
Canadian Wheat Board,
5.67% due 02/14/2000 26,000,000 25,819,820
------------
Export Development Corporation
5.50% due 02/10/2000 20,000,000 19,877,778
------------
Government of Canada,
5.50% due 01/24/2000 30,000,000 29,894,583
5.58% due 01/24/2000 15,000,000 14,946,525
------------
44,841,108
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost: $90,538,706) $ 90,538,706
------------
COMMERCIAL PAPER - 15.30%
AUTO SERVICES - 2.75%
PACCAR Financial Corporation,
5.78% due 02/24/2000 $ 30,100,000 $ 29,839,033
------------
DRUGS & HEALTH CARE - 2.28%
Pfizer, Incorporated,
5.65% due 03/01/2000 25,000,000 24,764,583
------------
ELECTRICAL EQUIPMENT - 2.57%
General Electric Capital
Corporation, 5.91% due
01/27/2000 28,000,000 27,880,487
------------
FINANCIAL SERVICES - 2.29%
Goldman Sachs Group LP,
6.375% due 01/21/2000 25,000,000 24,911,458
------------
FOOD & BEVERAGES - 1.84%
H.J. Heinz Company,
5.80% due 01/18/2000 20,000,000 19,945,222
------------
HOUSEHOLD PRODUCTS - 1.29%
Procter & Gamble Company,
5.86% due 01/11/2000 14,000,000 13,977,211
------------
LEISURE TIME - 2.29%
The Walt Disney Company,
5.62% due 02/18/2000 25,000,000 24,812,667
------------
TOTAL COMMERCIAL PAPER
(Cost: $166,130,661) $166,130,661
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
REPURCHASE AGREEMENTS - 13.79%
$149,686,000 Repurchase Agreement with State
Street Bank & Trust Company
dated 12/31/1999 at 2.95% to be
repurchased at $149,717,185 on
01/03/2000, collateralized by
$49,365,000 U.S. Treasury
Notes, 5.50% due 07/31/2001
(valued at $49,982,063,
including interest),
</TABLE>
The accompanying notes are an integral part of the financial statements.
193
<PAGE> 236
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
REPURCHASE AGREEMENTS - CONTINUED
$47,435,000 U.S. Treasury Notes, 7.875%
due 08/15/2001 (valued at $49,984,631, including interest),
$48,765,000 U.S. Treasury Notes, 6.50% due 08/31/2001 (valued at
$49,984,125, including interest), and $2,695,000 U.S. Treasury
Notes, 6.375% due 09/30/2001 (valued at $2,742,162, including $149,686,000
interest). --------------
TOTAL INVESTMENTS (MONEY MARKET TRUST)
(Cost: $1,085,471,704) $1,085,471,704
===================
</TABLE>
LIFESTYLE AGGRESSIVE 1000 TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
INVESTMENT COMPANIES - 100.00%
MANUFACTURERS INVESTMENT TRUST
Aggressive Growth Trust 214,695 $ 3,722,804
Blue Chip Growth Trust 129,025 2,792,103
Emerging Small Company Trust 114,224 4,653,505
Equity-Income Trust 600,452 10,237,712
Growth & Income Trust 113,952 3,722,803
Growth Trust 276,994 7,445,609
International Stock Trust 603,176 9,307,011
International Value Trust 717,027 9,307,011
Mid Cap Stock Trust 1,107,977 13,960,515
Overseas Trust 643,072 10,237,712
Quantitative Equity Trust 165,252 4,653,505
Small Company Value Trust 379,259 4,653,506
U.S. Large Cap Value Trust 652,361 8,376,310
-----------
TOTAL INVESTMENTS (LIFESTYLE AGGRESSIVE
1000 TRUST) (Cost: $83,667,459)
$93,070,106
===========
</TABLE>
LIFESTYLE GROWTH 820 TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
INVESTMENT COMPANIES - 100.00%
MANUFACTURERS INVESTMENT TRUST
Emerging Small Company Trust 508,431 $ 20,713,462
Equity-Income Trust 971,893 16,570,770
Growth & Income Trust 760,825 24,856,155
Growth Trust 1,387,062 37,284,232
High Yield Trust 1,290,558 16,557,859
International Stock Trust 1,879,381 28,998,847
International Value Trust 2,234,118 28,998,847
Mid Cap Blend Trust 945,820 20,713,462
Mid Cap Stock Trust 3,616,636 45,569,617
Overseas Trust 2,341,974 37,284,232
Quantitative Equity Trust 735,563 20,713,463
Small Company Value Trust 1,350,511 16,570,770
Strategic Bond Trust 1,859,377 20,713,462
Total Return Trust 4,353,678 53,855,001
U.S. Large Cap Value Trust 1,935,838 24,856,155
------------
TOTAL INVESTMENTS (LIFESTYLE GROWTH 820
TRUST) (Cost: $376,074,557) $414,256,334
============
</TABLE>
LIFESTYLE BALANCED 640 TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
INVESTMENT COMPANIES - 100.00%
MANUFACTURERS INVESTMENT TRUST
Blue Chip Growth Trust 2,118,347 $ 45,841,032
Emerging Small Company Trust 511,459 20,836,833
Equity-Income Trust 488,841 8,334,733
Growth & Income Trust 1,275,594 41,673,666
High Yield Trust 3,245,613 41,641,215
International Small Cap Trust 591,955 16,669,466
International Stock Trust 1,080,328 16,669,466
International Value Trust 1,605,303 20,836,833
Quantitative Equity Trust 739,944 20,836,833
Real Estate Securities Trust 1,939,814 25,004,200
Strategic Bond Trust 1,870,452 20,836,833
Total Return Trust 6,737,860 83,347,332
U.S. Government Securities Trust 2,203,290 29,171,566
U.S. Large Cap Value Trust 1,947,368 25,004,200
------------
TOTAL INVESTMENTS (LIFESTYLE BALANCED
640 TRUST) (Cost: $394,111,981) $416,704,208
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
194
<PAGE> 237
MANUFACTURERS INVESTMENT TRUST
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
- -------------------------------------------------------------------------------
LIFESTYLE MODERATE 460 TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
INVESTMENT COMPANIES - 100.00%
MANUFACTURERS INVESTMENT TRUST
Diversified Bond Trust 3,096,234 $ 33,501,251
Growth & Income Trust 256,361 8,375,313
High Yield Trust 652,283 8,368,791
International Small Cap Trust 178,451 5,025,187
International Stock Trust 325,676 5,025,188
International Value Trust 387,149 5,025,188
Mid Cap Stock Trust 664,707 8,375,313
Quantitative Equity Trust 356,903 10,050,375
Real Estate Securities Trust 779,703 10,050,375
Strategic Bond Trust 1,654,011 18,425,688
Total Return Trust 947,893 11,725,438
U.S. Government Securities Trust 2,530,306 33,501,251
U.S. Large Cap Value Trust 782,740 10,050,375
------------
TOTAL INVESTMENTS (LIFESTYLE MODERATE
460 TRUST) (Cost: $164,716,730) $167,499,733
============
</TABLE>
LIFESTYLE CONSERVATIVE 280 TRUST
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
INVESTMENT COMPANIES - 100.00%
MANUFACTURERS INVESTMENT TRUST
Blue Chip Growth Trust 147,561 $ 3,193,225
Diversified Bond Trust 1,377,238 14,901,716
High Yield Trust 580,285 7,445,057
International Stock Trust 344,915 5,322,041
Money Market Trust 2,128,817 21,288,166
Real Estate Securities Trust 412,881 5,322,041
Total Return Trust 1,720,951 21,288,166
U.S. Government Securities Trust 1,607,868 21,288,166
U.S. Large Cap Value Trust 497,387 6,386,450
------------
TOTAL INVESTMENTS (LIFESTYLE
CONSERVATIVE 280 TRUST) (Cost: $106,435,028
$106,778,498) ============
</TABLE>
Key to Currency Abbreviations
- -----------------------------
AUD - Australian Dollar
CAD - Canadian Dollar
CZK - Czech Koruna
DKK - Danish Krone
EUR - Euro
FIM - Finnish Markka
FRF - French Franc
DEM - German Deustche Mark
GBP - British Pound
GRD - Greek Drachma
HKD - Hong Kong Dollar
ITL - Italian Lira
JPY - Japanese Yen
NLG - Netherland Guilder
NZD - New Zealand Dollar
NOK - Norwegian Krone
PLZ - Polish Zloty
SGD - Singapore Dollar
Key to Security Abbreviations and Legend
- ----------------------------------------
ADR - American Depositary Receipts
ADS - American Depositary Shares
ESOP - Employee Stock Ownship Plan
FRN - Floating Rate Note (Rate effective as of December 31, 1999).
GDR - Global Depositary Receipts
GTD - Guaranteed
IO - Interest Only (Carries notional principal amount)
REIT - Real Estate Investment Trust
REMIC - Real Estate Mortgage Investment Conduit
SBI - Shares Beneficial Interest
SPDR - Standard & Poor's Depositary Receipts
TBA - To Be Announced
VR - Variable Rate Demand Note (Rate effective as of December 31, 1999)
+ - 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, 1999 a portion of this security was pledged to cover
forward commitments purchased.
**** - At December 31, 1999 a portion of this security was pledged to cover
margin requirements for open futures contracts.
Note: Step bonds typically carry a zero coupon rate through step up date.
The accompanying notes are an integral part of the financial statements.
194
<PAGE> 238
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION OF THE TRUST. The Manufacturers Investment Trust (the "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 nine 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 Aggressive Growth
Trust ("Aggressive Growth", formerly, Pilgrim Baxter Growth), the Emerging Small
Company Trust ("Emerging Small Company"), the Small Company Blend Trust ("Small
Company Blend"), the Mid Cap Growth Trust ("Mid Cap Growth", formerly, Small/Mid
Cap), the Mid Cap Stock Trust ("Mid Cap Stock"), the Overseas Trust ("Overseas",
formerly, International Growth and Income), the International Stock Trust
("International Stock"), the International Value Trust ("International Value"),
the Mid Cap Blend Trust ("Mid Cap Blend", formerly, Equity), the Small Company
Value Trust ("Small Company Value"), the Global Equity Trust ("Global Equity"),
the Growth Trust ("Growth"), the Large Cap Growth Trust ("Large Cap Growth",
formerly, Aggressive Asset Allocation), the Quantitative Equity Trust
("Quantitative Equity"), the Blue Chip Growth Trust ("Blue Chip Growth"), the
Real Estate Securities Trust ("Real Estate Securities"), the Value Trust
("Value"), the Equity Index Trust ("Equity Index"), the Growth & Income Trust
("Growth & Income"), the U.S. Large Cap Value Trust ("U.S. Large Cap Value"),
the Equity-Income Trust ("Equity-Income"), the Income & Value Trust ("Income &
Value", formerly, Moderate Asset Allocation), the Balanced Trust ("Balanced"),
the High Yield Trust ("High Yield"), the Strategic Bond Trust ("Strategic
Bond"), the Global Bond Trust ("Global Bond", formerly, Global Government Bond),
the Total Return Trust ("Total Return"), the Investment Quality Bond Trust
("Investment Quality Bond"), the Diversified Bond Trust ("Diversified Bond",
formerly, Conservative Asset Allocation), 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 Global 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 Accounts A, B, D and E, separate accounts 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, MNY, Manulife America and Manulife USA
are indirect wholly-owned subsidiaries of The Manufacturers Life Insurance
Company ("Manulife"), which in turn is a wholly-owned subsidiary of Manulife
Financial Corporation, a publicly traded company. Manulife Financial Corporation
and its subsidiaries are known collectively as "Manulife Financial". MNY is a
wholly-owned subsidiary of MNA and Manulife America is a wholly-owned subsidiary
of Manulife USA.
At December 31, 1999, Manulife USA owned seed money shares in Small Company
Blend.
Manufacturers Securities Services, LLC ("MSS"), a Delaware limited liability
company controlled by 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.
CHANGE IN SUBADVISERS. Effective May 1, 1999, Pilgrim Baxter & Associates, Ltd.
("PBA") resigned as subadviser to Pilgrim Baxter Growth, Warburg Pincus Asset
Management, Inc. ("Warburg") resigned as subadviser to Emerging Small Company,
Fred Alger Management, Inc. ("Alger") was replaced as subadviser to Small/Mid
Cap, J.P. Morgan Investment Management Inc. ("J.P. Morgan") resigned as
subadviser to International Growth and Income, Founders Asset Management LLC
("Founders") resigned as subadviser to Growth, Fidelity Management Trust Company
("FMTC") resigned as subadviser to Moderate Asset Allocation and Conservative
Asset Allocation and Oechsle International Advisors, L.C.C. ("Oechsle") resigned
as subadviser to Global Government Bond.
The Trustees, including a majority of Trustees who are not interested persons of
the Trust, voted to approve the following new subadvisers: A I M Capital
Management, Inc. ("AIM") as subadviser to Aggressive Growth and Mid Cap Growth;
Capital Guardian Trust Company ("CGTC") as subadviser to Income & Value and
Diversified Bond; FMTC as subadviser to Overseas; Franklin Advisers, Inc.
("Franklin") as subadviser to Emerging Small Company; Pacific Investment
Management Company ("PIMCO") as subadviser to Global Bond and State Street
Global Advisors ("SSgA") as subadviser to Growth.
CHANGE IN PORTFOLIO NAMES. Effective May 1, 1999, the name of Pilgrim Baxter
Growth was changed to Aggressive Growth, Small/Mid Cap was changed to Mid Cap
Growth, International Growth and Income was changed to Overseas, Equity was
changed to Mid Cap Blend, Aggressive Asset Allocation was changed to Large Cap
Growth, Moderate Asset Allocation was changed to Income & Value, Global
Government Bond was changed to Global Bond and Conservative Asset Allocation was
changed to Diversified Bond.
CHANGE IN INVESTMENT OBJECTIVE. Due to the changes in subadvisers, the Trustees
voted to change the investment objectives of Aggressive Growth, Emerging Small
Company, Overseas, Large Cap Growth, Income & Value, Global Bond and Diversified
Bond. The proposed changes were approved by the shareholders of each Portfolio
on April 27, 1999 and were effective May 1, 1999.
196
<PAGE> 239
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
ORGANIZATION OF THE TRUST, CONTINUED
NEW PORTFOLIOS. Effective May 1, 1999, Small Company Blend, Mid Cap Stock,
International Value, U.S. Large Cap Value and Total Return commenced operations.
CGTC is the subadviser to Small Company Blend and U.S. Large Cap Value,
Wellington
Management Company, LLP ("Wellington Management") is the subadviser to Mid Cap
Stock, Templeton Investment Counsel, Inc. ("Templeton Investment") is the
subadviser to International Value and PIMCO is the subadviser to Total Return.
REORGANIZATION. On April 27, 1999 the shareholders of the Trust voted to approve
an Agreement and Plan of Reorganization (the "Agreement") of the Trust on behalf
of the Worldwide Growth Trust ("Worldwide Growth") and the Capital Growth Bond
Trust ("Capital Growth Bond") portfolios (collectively, the "Transferor
Portfolios") and the Global Equity and the Investment Quality Bond portfolios
(collectively, the "Acquiring Portfolios"). The agreement provided for: (a) the
transfer of all assets, subject to all of the liabilities, of the Transferor
Portfolios in exchange for a representative amount of the Acquiring Portfolios
shares; (b) the liquidation of the Transferor Portfolios; and (c) the
distribution to Transferor Portfolio shareholders of such Acquiring Portfolio
shares. Based on the opinion of Trust counsel, the reorganization qualified as a
tax-free reorganization for federal income tax purposes with no gain or loss
recognized to the portfolios or their shareholders. The expenses of the
reorganization were borne by the Transferor Portfolios and the Acquiring
Portfolios.
The effective time of the reorganization occurred at the close of regularly
scheduled trading on the New York Stock Exchange on April 30, 1999. As a result
of the reorganization, the total value of all shares of each Acquiring Portfolio
issued in the reorganization equaled the total value of the net assets of the
corresponding Transferor Portfolio (including $6,919,477 and $1,057,973 of
unrealized appreciation from Worldwide Growth and Capital Growth Bond,
respectively) acquired by such Acquiring Portfolio. The resulting activity was
as follows:
<TABLE>
<CAPTION>
Shares Total Net Assets Net Asset Value
<S> <C> <C> <C>
Worldwide Growth at April 30, 1999 2,685,944 $ 42,636,373 $15.87
Global Equity at April 30, 1999 47,464,654 879,296,730 18.53
Global Equity after reorganization on April 30, 1999 49,765,028 921,933,103 18.53
Capital Growth Bond at April 30, 1999 5,792,535 64,455,265 11.13
Investment Quality Bond at April 30, 1999 27,658,681 325,513,768 11.77
Investment Quality Bond after reorganization
on April 30, 1999 33,134,914 389,969,033 11.77
</TABLE>
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, 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 at period end 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.
197
<PAGE> 240
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Net realized gains and losses on foreign currency transactions represent net
gains and losses from sales and maturities of foreign currency contracts,
disposition of foreign currencies, the difference between the amount of net
investment income accrued and the U.S. dollar amount actually received, and
gains and losses between trade and settlement date on purchases and sales of
securities.
The effects of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or loss on
investment securities.
FORWARD FOREIGN CURRENCY CONTRACTS. All portfolios with the exception of Equity
Index, Real Estate Securities, 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 in excess of amounts
recognized on the Statements of Assets and Liabilities 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.
FUTURES. All Portfolios with the exception of Real Estate Securities, 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 Portfolio 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.
The following is a summary of open futures contracts at December 31, 1999:
<TABLE>
<CAPTION>
SALES OF FUTURES CONTRACTS PURCHASES OF FUTURES CONTRACTS
---------------------------------------- ------------------------------------------
NUMBER OF AGGREGATE NUMBER OF AGGREGATE UNREALIZED
EXPIRATION OPEN MARKET VALUE UNREALIZED OPEN MARKET VALUE GAIN
DATE CONTRACTS OF CONTRACTS GAIN CONTRACTS OF CONTRACTS (LOSS)
---- --------- ------------ ---- --------- ------------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
OVERSEAS:
Nikkei 225 Index........ March 2000 ----- ----- 8 $756,000 $14,200
Topix Index............. March 2000 ----- ----- 7 JPY 119,840,000 50,686
-------
$64,886
=======
EQUITY INDEX:
S&P 500 Index........... March 2000 ----- ----- 8 $2,968,400 $83,600
=======
HIGH YIELD:
Long Gilt............... March 2000 38 GBP 4,233,580 $173,063 ----- -----
========
GLOBAL BOND:
U.S. 10 yr Treasury..... March 2000 ----- ----- 44 $4,217,813 ($62,563)
Japanese 10 yr Treasury. March 2000 ----- ----- 5 JPY 664,050,000 155,540
-------
$92,977
=======
</TABLE>
198
<PAGE> 241
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
TOTAL RETURN:
Euro ................... Sept 2000 ----- ----- 108 EUR 25,196,400 ($136,625)
Euro ................... Dec 2000 39 EUR 9,076,763 (50,813)
US 10 yr Treasury....... March 2000 ----- ----- 300 $28,757,813 (639,936)
---------
($827,374)
=========
</TABLE>
PURCHASED AND WRITTEN OPTIONS. All Portfolios with the exception of Real Estate
Securities, Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820,
Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative 280
may purchase and sell put and call options on securities (whether or not it
holds the securities in its portfolio) securities indices, currencies and
futures contracts.
When a Portfolio writes a put or call option, an amount equal to the premium
received by the Portfolio is recorded as a liability and is subsequently
"marked-to-market" to reflect the current market value of the option written. If
an option expires or if the Portfolio enters into a offsetting purchase option,
the Portfolio realizes a gain (or loss if the cost of a offsetting purchase
option exceeds the premium received when the option was written). If a written
call option is exercised, the Portfolio realizes a gain or loss from the sale of
the underlying security with the proceeds of the sale increased by the premium
originally received. If a written put option is exercised, the amount of the
premium originally received reduces the cost of the security the Portfolio
purchases upon exercise of the option.
When a Portfolio purchases a put or call option, the premium paid by the
Portfolio is included in the Portfolio of Investments and subsequently
"marked-to-market" to reflect the current market value of the option. If the
purchased option expires, the Portfolio realizes a loss in the amount of the
cost of the option. If a Portfolio enters into a closing sale transaction, the
Portfolio realizes a gain or loss, depending on whether proceeds from the
closing sale transaction are greater or less than the original cost of the
option. If a Portfolio exercises a call option, the cost of the securities
acquired by exercising the call is increased by the premium paid to buy the
call. If a Portfolio exercises a put option, it realizes a gain or loss from the
sale of the underlying security and the proceeds from such sale are decreased by
the premium originally paid.
The portfolios may use options to manage exposure to fluctuations in currency
values. Writing puts and buying calls may increase the portfolio's exposure to
the underlying instrument. Buying puts and writing calls may decrease the
portfolio's exposure to the underlying instrument. Losses may arise from changes
in the value of the underlying instruments, if there is an illiquid secondary
market for the contracts or if the counterparties do not perform under the terms
of the contract.
INTEREST RATE SWAPS. All Portfolios with the exception of Real Estate
Securities, Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820,
Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative 280
may enter into interest rate swaps. Interest rate swaps involve the exchange of
commitments to pay or receive interest of one instrument for that of another
instrument (for example, an exchange of floating rate payments for fixed rate
payments with respect to a notional principal amount). Net periodic interest
payments to be received or paid are accrued daily and are recorded as interest
income. Interest rate swaps are marked-to-market daily based upon quotations
from market makers and the change, if any, is recorded as unrealized
appreciation or depreciation. Payments received or paid at the end of the
agreement are recorded as realized gains or losses. A Portfolio could be exposed
to credit or market risk due to unfavorable changes in the fluctuation of
interest rates, the possibility that there is no liquid market for these
agreements or that the counterparty may default on its obligation to perform.
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 or sell 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 Portfolio may receive compensation for interest
forgone in the purchase of forward delivery securities. With respect to purchase
commitments, each Portfolio identifies securities as segregated in its records
with a value at least equal to the amount of the commitment. Losses may arise
due to changes in the value of the underlying securities or if the counterparty
does not perform under the contract, or if the issuer does not issue the
securities due to political, economic, or other factors. 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. The market values of the securities purchased on a
forward delivery basis are identified in the portfolio of investments.
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.
199
<PAGE> 242
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
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 their 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 is intended to be maintained at that
level during the period of the loan. The market value of the loaned securities
is determined at the close of business of the Portfolio and any additional
required collateral is delivered to the Portfolio the next business day. During
the loan period, the Portfolio continues to retain rights of ownership,
including dividends and interest of the loaned securities.
At December 31, 1999, the value of the securities loaned amounted to
$16,576,602, $114,471,265, $32,938,795, $114,582,563, $104,448,580, $28,284,214,
$15,401,825, $269,437,854, $938,540, $60,221,704, $10,552,899, $20,837,779,
$33,132,144, $31,599,006, $14,440,081, $6,043,150, $3,140,929, $62,762,936,
$28,179,022, $93,221,949, $7,046,206, $15,188,575, $13,795,795, $49,690,862, and
$51,237,654, in Pacific Rim Emerging Markets, Science & Technology, Aggressive
Growth, Emerging Small Company, Mid Cap Growth, Overseas, International Stock,
Mid Cap Blend, Small Company Value, Global Equity, Growth, Large Cap Growth,
Quantitative Equity, Blue Chip Growth, Real Estate Securities, Value, Equity
Index, Growth & Income, Equity-Income, Income & Value, Balanced, High Yield,
Strategic Bond, Investment Quality Bond, and Diversified Bond, respectively.
At December 31, 1999, the value of cash collateral amounted to $17,225,619,
$117,771,425, $33,210,858, $116,713,326, $109,461,135, $31,253,763, $16,168,417,
$277,560,148, $1,082,635, $63,166,443, $10,858,409, $21,560,181, $34,098,803,
$32,798,153, $15,100,586, $6,159,600, $3,207,855, $63,760,918, $29,142,146,
$95,470,694, $6,873,100, $15,481,406, $14,135,537, $50,820,360, and $52,273,926
in Pacific Rim Emerging Markets, Science & Technology, Aggressive Growth,
Emerging Small Company, Mid Cap Growth, Overseas, International Stock, Mid Cap
Blend, Small Company Value, Global Equity, Growth, Large Cap Growth,
Quantitative Equity, Blue Chip Growth, Real Estate Securities, Value, Equity
Index, Growth & Income, Equity-Income, Income & Value, Balanced, High Yield,
Strategic Bond, Investment Quality Bond, and Diversified Bond respectively. At
December 31, 1999, the value of U.S. Government securities collateral amounted
to $1,636,810, $903,253, $6,458, $122,147 and $28,340 in Overseas, Real Estate
Securities, Equity Index, Growth & Income, and Equity-Income respectively.
MORTGAGE DOLLAR ROLLS. All Portfolios, with the exception of Money Market,
Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle Balanced 640,
Lifestyle Moderate 460 and Lifestyle Conservative 280, 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 Overseas in connection with its
organization, initial registration and public offering of shares are being
amortized on a straight-line basis, over a five-year period beginning with the
commencement of operations.
FEDERAL INCOME TAXES. The Portfolios' policy is to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code, as amended,
and to distribute substantially 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. Substantially all of the net investment income
of Money Market, 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
substantially 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 6.
200
<PAGE> 243
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
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 generally at least 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 a trade date basis.
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
in the United States 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.
3. WRITTEN OPTIONS AND INTEREST RATE SWAPS.
The following is a summary of open written options outstanding at December 31,
1999:
<TABLE>
<CAPTION>
GLOBAL BOND TOTAL RETURN
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED
--------- -------- --------- --------
<S> <C> <C> <C> <C>
Options written 1,899 $116,864 1,664 $379,895
Options closed & expired (1,899) (116,864) (1,325) (201,950)
------- --------- ------- ---------
Options outstanding 12/31/1999 --- --- 339 $177,945
=== ========
</TABLE>
In addition, at December 31, 1999, Global Bond had entered into written options
on futures contracts. The terms of the contracts required a deposit for initial
and variation margin. Premiums received from writing this option on futures
contracts were included in the initial margin deposit. The following is a
summary of open written options on futures contracts outstanding in Global Bond
at December 31, 1999:
<TABLE>
<CAPTION>
NUMBER OF UNREALIZED APPRECIATION
DESCRIPTION CONTRACTS EXPIRATION DATE (DEPRECIATION)
----------- --------- --------------- --------------
<S> <C> <C> <C>
EURIBOR 19 September 13, 2000 ($964)
90 Day Libor 35 September 20, 2000 15,323
-------
$14,359
=======
</TABLE>
The following is a summary of open interest rate swap contracts outstanding in
Global Bond at December 31, 1999:
<TABLE>
<CAPTION>
NOTIONAL AMOUNT DESCRIPTION UNREALIZED APPRECIATION
--------------- ----------- -----------------------
<S> <C> <C>
GBP 7,600,000 Agreement with Merrill Lynch terminating August 6, 2003 to
pay 6 month LIBOR (London Interbank Offer Rate)
semi-annually and to receive a fixed rate of 6.949% $4,800
annually.
</TABLE>
4. CAPITAL SHARES. Share activity for the Trust for the year ended December 31,
1999 and the year ended December 31, 1998 was as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES CAPITAL SHARES CAPITAL
------ ------- ------ -------
<S> <C> <C> <C> <C>
PACIFIC RIM EMERGING MARKETS
Sold 19,223,623 $166,239,881 6,770,616 $43,082,198
Reinvestment of distributions 150,288 1,491,534 --- ---
Redeemed (14,768,802) (126,011,817) (6,000,038) (38,076,228)
----------- ------------ ---------- -----------
Net increase 4,605,109 $41,719,598 770,578 $5,005,970
========= =========== ======= ==========
</TABLE>
201
<PAGE> 244
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
CAPITAL SHARES, CONTINUED
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES CAPITAL SHARES CAPITAL
------ ------- ------ -------
<S> <C> <C> <C> <C>
SCIENCE & TECHNOLOGY
Sold 22,528,543 $ 592,873,759 6,255,104 $ 95,650,833
Reinvestment of distributions 2,196,290 78,452,440 -- --
Redeemed (2,266,973) (60,758,210) (2,013,379) (30,207,422)
----------- ------------- ----------- -------------
Net increase 22,457,860 $ 610,567,989 4,241,725 $ 65,443,411
=========== ============= =========== =============
INTERNATIONAL SMALL CAP
Sold 5,814,052 $ 105,417,292 7,587,840 $ 112,981,718
Reinvestment of distributions 31,234 500,049 27,503 437,568
Redeemed (7,001,039) (123,098,528) (7,319,705) (109,140,302)
----------- ------------- ----------- -------------
Net increase (decrease) (1,155,753) ($ 17,181,187) 295,639 $ 4,278,984
=========== ============= =========== =============
AGGRESSIVE GROWTH (FORMERLY, PILGRIM
BAXTER GROWTH)
Sold 8,078,142 $ 106,010,569 8,155,418 $ 93,414,114
Redeemed (11,224,810) (140,540,012) (4,658,791) (52,390,417)
----------- ------------- ----------- -------------
Net increase (decrease) (3,146,668) ($ 34,529,443) 3,496,627 $ 41,023,697
=========== ============= =========== =============
EMERGING SMALL COMPANY
Sold 2,469,575 $ 65,829,200 3,113,895 $ 71,622,127
Reinvestment of distributions 176,071 4,061,968 158,191 4,130,364
Redeemed (4,146,024) (106,499,420) (2,076,031) (47,459,455)
----------- ------------- ----------- -------------
Net increase (decrease) (1,500,378) ($ 36,608,252) 1,196,055 $ 28,293,036
=========== ============= =========== =============
SMALL COMPANY BLEND
Sold 3,391,215 $ 44,848,948
Reinvestment of distributions 64,982 1,020,865 -- --
Redeemed (60,911) (833,254) -- --
----------- -------------
Net increase 3,395,286 $ 45,036,559
=========== =============
MID CAP GROWTH (FORMERLY, SMALL/MID
CAP)
Sold 7,272,833 $ 142,509,467 6,614,995 $ 112,499,416
Reinvestment of distributions 3,082,007 55,167,921 -- --
Redeemed (3,721,530) (70,553,000) (4,045,412) (67,014,853)
----------- ------------- ----------- -------------
Net increase 6,633,310 $ 127,124,388 2,569,583 $ 45,484,563
=========== ============= =========== =============
MID CAP STOCK
Sold 8,779,846 $ 108,832,071
Redeemed (884,386) (10,877,429) -- --
----------- -------------
Net increase 7,895,460 $ 97,954,642
=========== =============
OVERSEAS (FORMERLY, INTERNATIONAL
GROWTH AND INCOME)
Sold 32,196,915 $ 394,552,595 23,788,371 $ 269,693,810
Reinvestment of distributions -- -- 961,602 12,000,793
Redeemed (26,084,433) (320,098,685) (23,984,496) (270,169,261)
----------- ------------- ----------- -------------
Net increase 6,112,482 $ 74,453,910 765,477 $ 11,525,342
=========== ============= =========== =============
</TABLE>
202
<PAGE> 245
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
CAPITAL SHARES, CONTINUED
YEAR ENDED DECEMBER 31, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES CAPITAL SHARES CAPITAL
------ ------- ------ -------
<S> <C> <C> <C> <C>
INTERNATIONAL STOCK
Sold 28,057,311 $ 370,997,131 20,278,906 $ 252,715,252
Reinvestment of distributions 1,241,609 18,912,664 273,672 3,560,791
Redeemed (32,315,892) (428,649,401) (15,182,565) (190,065,125)
----------- ------------- ----------- -------------
Net increase (decrease) (3,016,972) ($ 38,739,606) 5,370,013 $ 66,210,918
=========== ============= =========== =============
INTERNATIONAL VALUE
Sold 9,749,493 $ 119,828,426
Redeemed (1,972,126) (23,986,354) -- --
----------- -------------
Net increase 7,777,367 $ 95,842,072
=========== =============
MID CAP BLEND (FORMERLY, EQUITY)
Sold 4,966,975 $ 95,247,137 8,508,634 $ 161,890,771
Reinvestment of distributions 10,077,627 177,366,228 14,385,769 293,469,692
Redeemed (18,521,608) (357,342,735) (13,775,537) (261,703,577)
----------- ------------- ----------- -------------
Net increase (decrease) (3,477,006) ($ 84,729,370) 9,118,866 $ 193,656,886
=========== ============= =========== =============
SMALL COMPANY VALUE
Sold 2,887,495 $ 32,006,557 9,982,319 $ 117,110,620
Reinvestment of distributions 9,967 105,452 4,241 56,195
Redeemed (9,907,015) (108,749,913) (1,330,303) (15,162,118)
----------- ------------- ----------- -------------
Net increase (decrease) (7,009,553) ($ 76,637,904) 8,656,257 $ 102,004,697
=========== ============= =========== =============
GLOBAL EQUITY
Sold 22,532,074 $ 421,163,138 4,136,030 $ 83,076,553
Reinvestment of distributions 5,314,655 93,909,966 3,005,041 64,337,927
Redeemed (31,124,344) (584,725,222) (6,383,984) (123,784,064)
Shares issued in connection
with reorganization 2,300,374 42,636,373 -- --
----------- ------------- ----------- -------------
Net increase (decrease) (977,241) ($ 27,015,745) 757,088 $ 23,630,415
=========== ============= =========== =============
GROWTH
Sold 11,074,770 $ 251,148,342 5,117,245 $ 95,321,753
Reinvestment of distributions 802,965 18,042,613 443,371 8,441,791
Redeemed (2,596,080) (60,703,686) (652,129) (11,969,990)
----------- ------------- ----------- -------------
Net increase 9,281,655 $ 208,487,269 4,908,487 $ 91,793,556
=========== ============= =========== =============
LARGE CAP GROWTH (FORMERLY,
AGGRESSIVE ASSET ALLOCATION)
Sold 11,650,530 $ 173,828,799 1,272,177 $ 18,613,080
Reinvestment of distributions 1,915,001 28,188,805 1,988,692 29,094,564
Redeemed (7,425,729) (110,886,780) (2,991,236) (43,050,524)
----------- ------------- ----------- -------------
Net increase 6,139,802 $ 91,130,824 269,633 $ 4,657,120
=========== ============= =========== =============
QUANTITATIVE EQUITY
Sold 5,665,339 $ 143,508,314 2,525,086 $ 56,864,359
Reinvestment of distributions 1,104,607 28,101,212 1,017,210 23,172,050
Redeemed (1,522,915) (39,230,914) (897,490) (19,600,478)
----------- ------------- ----------- -------------
Net increase 5,247,031 $ 132,378,612 2,644,806 $ 60,435,931
=========== ============= =========== =============
</TABLE>
203
<PAGE> 246
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
CAPITAL SHARES, CONTINUED
YEAR ENDED DECEMBER 31, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES CAPITAL SHARES CAPITAL
------ ------- ------ -------
<S> <C> <C> <C> <C>
BLUE CHIP GROWTH
Sold 25,358,047 $ 492,130,684 19,497,392 $ 322,061,761
Reinvestment of distributions 2,897,748 56,564,055 932,125 15,836,800
Redeemed (8,448,638) (163,982,688) (7,377,854) (118,430,259)
----------- ------------- ---------- -------------
Net increase 19,807,157 $ 384,712,051 13,051,663 $ 219,468,302
=========== ============= ========== =============
REAL ESTATE SECURITIES
Sold 6,873,888 $ 92,841,726 3,414,938 $ 57,940,371
Reinvestment of distributions 560,770 7,390,951 1,208,641 21,139,142
Redeemed (3,133,643) (44,213,832) (1,717,232) (27,624,209)
----------- ------------- ---------- -------------
Net increase 4,301,015 $ 56,018,845 2,906,348 $ 51,455,304
=========== ============= ========== =============
VALUE
Sold 2,436,870 $ 35,300,251 8,926,276 $ 133,950,074
Reinvestment of distributions 354,079 4,624,350 603,016 8,430,164
Redeemed (9,909,599) (150,854,134) (1,126,616) (15,950,184)
----------- ------------- ---------- -------------
Net increase (decrease) (7,118,650) ($110,929,533) 8,402,676 $ 126,430,054
=========== ============= ========== =============
EQUITY INDEX
Sold 2,885,132 $ 47,861,401 2,175,437 $ 30,132,341
Reinvestment of distributions 155,372 2,782,446 131,978 1,983,647
Redeemed (811,265) (13,469,906) (374,434) (4,985,616)
----------- ------------- ---------- -------------
Net increase 2,229,239 $ 37,173,941 1,932,981 $ 27,130,373
=========== ============= ========== =============
GROWTH & INCOME
Sold 19,120,056 $ 575,002,218 14,731,896 $ 379,844,294
Reinvestment of distributions 2,940,196 89,470,162 4,443,994 114,877,243
Redeemed (5,045,205) (153,850,633) (5,821,777) (145,134,876)
----------- ------------- ---------- -------------
Net increase 17,015,047 $ 510,621,747 13,354,113 $ 349,586,661
=========== ============= ========== =============
U.S. LARGE CAP VALUE
Sold 17,074,014 $ 211,344,517
Redeemed (658,829) (8,161,568) -- --
----------- -------------
Net increase 16,415,185 $ 203,182,949
=========== =============
EQUITY-INCOME
Sold 7,231,374 $ 128,530,632 10,021,748 $ 173,662,705
Reinvestment of distributions 4,503,851 76,565,467 3,319,011 59,543,058
Redeemed (13,631,875) (243,517,473) (6,770,818) (114,381,887)
----------- ------------- ---------- -------------
Net increase (decrease) (1,896,650) ($ 38,421,374) 6,569,941 $ 118,823,876
=========== ============= ========== =============
INCOME & VALUE (FORMERLY,
MODERATE ASSET ALLOCATION)
Sold 4,299,864 $ 54,039,467 616,674 $ 8,884,701
Reinvestment of distributions 5,529,820 69,343,951 5,317,384 68,115,685
Redeemed (6,536,596) (83,143,235) (6,707,081) (86,963,822)
----------- ------------- ---------- -------------
Net increase (decrease) 3,293,088 $ 40,240,183 (773,023) ($ 9,963,436)
=========== ============= ========== =============
</TABLE>
204
<PAGE> 247
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
CAPITAL SHARES, CONTINUED
YEAR ENDED DECEMBER 31, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES CAPITAL SHARES CAPITAL
------ ------- ------ -------
<S> <C> <C> <C> <C>
BALANCED
Sold 3,069,046 $ 57,353,502 3,060,496 $ 58,207,534
Reinvestment of distributions 1,047,549 19,023,503 1,349,790 24,998,103
Redeemed (2,745,068) (49,849,107) (453,357) (8,542,136)
----------- ------------- ---------- -------------
Net increase 1,371,527 $ 26,527,898 3,956,929 $ 74,663,502
=========== ============= ========== =============
HIGH YIELD
Sold 7,131,998 $ 96,511,235 9,574,213 $ 131,241,993
Reinvestment of distributions 1,502,095 19,271,875 1,062,130 13,731,611
Redeemed (4,746,296) (63,530,203) (2,584,913) (34,889,748)
----------- ------------- ---------- -------------
Net increase 3,887,797 $ 52,252,907 8,051,430 $ 110,083,856
=========== ============= ========== =============
STRATEGIC BOND
Sold 4,555,359 $ 51,184,957 10,586,115 $ 126,618,386
Reinvestment of distributions 2,765,174 30,665,785 2,251,302 26,813,006
Redeemed (12,067,131) (134,883,686) (4,550,160) (53,660,911)
----------- ------------- ---------- -------------
Net increase (decrease) (4,746,598) ($ 53,032,944) 8,287,257 $ 99,770,482
=========== ============= ========== =============
GLOBAL BOND (FORMERLY, GLOBAL
GOVERNMENT BOND)
Sold 2,074,428 $ 24,587,793 889,721 $ 12,101,805
Reinvestment of distributions 1,410,339 16,839,448 1,512,137 19,914,849
Redeemed (5,251,214) (63,020,152) (3,414,282) (46,015,024)
----------- ------------- ---------- -------------
Net decrease (1,766,447) ($ 21,592,911) (1,012,424) ($ 13,998,370)
=========== ============= ========== =============
TOTAL RETURN
Sold 20,796,912 $ 258,636,345
Redeemed (1,396,137) (17,277,134) -- --
---------- -------------
Net increase 19,400,775 $ 241,359,211
=========== =============
INVESTMENT QUALITY BOND
Sold 4,721,697 $ 56,684,852 11,528,927 $ 139,662,289
Reinvestment of distributions 1,443,452 17,104,902 990,654 11,620,375
Redeemed (11,807,744) (138,265,919) (3,019,631) (36,762,808)
Shares issued in connection
with reorganization 5,476,233 64,455,265 -- --
----------- ------------- ---------- -------------
Net increase (decrease) (166,362) ($ 20,900) 9,499,950 $ 114,519,856
=========== ============= ========== =============
DIVERSIFIED BOND (FORMERLY,
CONSERVATIVE ASSET ALLOCATION)
Sold 5,678,173 $ 62,120,028 1,037,883 $ 11,909,984
Reinvestment of distributions 1,639,199 18,063,968 1,646,332 18,570,627
Redeemed (3,716,109) (41,083,738) (3,396,362) (39,658,396)
----------- ------------- ---------- -------------
Net increase (decrease) 3,601,263 $ 39,100,258 ($712,147) ($9,177,785)
=========== ============= ========== =============
U.S. GOVERNMENT SECURITIES
Sold 11,945,868 $ 162,266,123 11,633,765 $ 157,556,444
Reinvestment of distributions 1,349,968 18,022,070 996,467 13,043,750
Redeemed (12,188,142) (162,052,930) (4,927,141) (66,613,911)
----------- ------------- ---------- -------------
Net increase 1,107,694 $ 18,235,263 7,703,091 $ 103,986,283
=========== ============= ========== =============
</TABLE>
205
<PAGE> 248
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
CAPITAL SHARES, CONTINUED
YEAR ENDED DECEMBER 31, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES CAPITAL SHARES CAPITAL
------ ------- ------ -------
<S> <C> <C> <C> <C>
MONEY MARKET
Sold 217,064,656 $ 2,170,646,703 122,669,097 $ 1,226,690,969
Reinvestment of distributions 3,663,025 36,629,783 2,739,174 27,391,741
Redeemed (173,225,509) (1,732,255,095) (108,395,909) (1,083,959,093)
------------ --------------- ------------ ---------------
Net increase 47,502,172 $ 475,021,391 17,012,362 $ 170,123,617
============ =============== ============ ===============
LIFESTYLE AGGRESSIVE 1000
Sold 1,885,307 $ 24,869,279 2,940,289 $ 39,235,345
Reinvestment of distributions 306,488 3,966,553 235,336 3,344,794
Redeemed (1,805,521) (23,557,915) (804,663) (10,883,044)
------------ --------------- ------------ ---------------
Net increase 386,274 $ 5,277,917 2,370,962 $ 31,697,095
============ =============== ============ ===============
LIFESTYLE GROWTH 820
Sold 4,720,035 $ 65,963,874 11,372,979 $ 156,491,064
Reinvestment of distributions 1,468,410 19,924,095 1,244,102 17,780,049
Redeemed (6,498,243) (88,418,613) (790,640) (10,733,134)
------------ --------------- ------------ ---------------
Net increase (decrease) (309,798) ($ 2,530,644) 11,826,441 $ 163,537,979
============ =============== ============ ===============
LIFESTYLE BALANCED 640
Sold 5,431,955 $ 73,105,083 13,995,601 $ 188,784,151
Reinvestment of distributions 1,730,091 22,802,505 1,197,810 16,573,997
Redeemed (5,869,343) (78,159,593) (983,046) (12,628,291)
------------ --------------- ------------ ---------------
Net increase 1,292,703 $ 17,747,995 14,210,365 $ 192,729,857
============ =============== ============ ===============
LIFESTYLE MODERATE 460
Sold 3,434,974 $ 47,275,252 6,252,966 $ 84,594,300
Reinvestment of distributions 252,171 3,462,636 332,059 4,570,654
Redeemed (1,760,827) (24,213,001) (608,000) (8,237,978)
------------ --------------- ------------ ---------------
Net increase 1,926,318 $ 26,524,887 5,977,025 $ 80,926,976
============ =============== ============ ===============
LIFESTYLE CONSERVATIVE 280
Sold 3,336,284 $ 44,155,484 4,305,187 $ 56,164,191
Reinvestment of distributions 494,740 6,499,821 154,440 2,002,757
Redeemed (1,529,502) (20,165,443) (184,127) (2,396,336)
------------ --------------- ------------ ---------------
Net increase 2,301,522 $ 30,489,862 4,275,500 $ 55,770,613
============ =============== ============ ===============
</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 year ended December 31, 1999:
<TABLE>
<CAPTION>
PURCHASES SALES
U.S. U.S.
PORTFOLIO GOVERNMENT OTHER ISSUES GOVERNMENT OTHER ISSUES
--------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Pacific Rim Emerging Markets........ ----- $52,291,743 ----- $17,067,744
Science & Technology................ ----- 983,151,230 ----- 511,264,368
International Small Cap............. ----- 458,092,107 ----- 446,912,386
Aggressive Growth................... ----- 150,236,974 ----- 178,656,399
Emerging Small Company.............. ----- 391,038,713 ----- 458,556,933
Small Company Blend *............... ----- 43,975,728 ----- 5,343,788
Mid Cap Growth...................... ----- 874,415,890 ----- 817,336,514
Mid Cap Stock *..................... ----- 109,585,600 ----- 17,168,828
Overseas............................ ----- 433,070,810 ----- 364,600,148
</TABLE>
206
<PAGE> 249
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
PURCHASES AND SALES OF SECURITIES, CONTINUED
<TABLE>
<CAPTION>
PURCHASES SALES
U.S. U.S.
PORTFOLIO GOVERNMENT OTHER ISSUES GOVERNMENT OTHER ISSUES
--------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
International Stock................. ----- $74,109,340 ----- $135,011,167
International Value *............... ----- 92,132,220 ----- 1,860,735
Mid Cap Blend....................... ----- 1,883,047,815 ----- 2,150,328,803
Small Company Value................. ----- 147,028,010 ----- 222,345,009
Global Equity....................... ----- 360,325,953 ----- 516,139,885
Growth.............................. ----- 869,398,093 ----- 666,793,959
Large Cap Growth.................... ----- 530,449,592 ----- 472,503,931
Quantitative Equity................. ----- 637,084,703 ----- 530,714,020
Blue Chip Growth.................... ----- 869,860,144 ----- 565,808,642
Real Estate Securities.............. ----- 377,671,996 ----- 320,924,764
Value............................... ----- 95,930,457 ----- 184,175,731
Equity Index........................ ----- 43,927,564 ----- 8,197,737
Growth & Income..................... ----- 982,654,939 ----- 526,178,198
U.S. Large Cap Value *.............. ----- 224,898,043 ----- 27,502,368
Equity-Income....................... ----- 303,761,657 ----- 391,510,370
Income & Value ..................... $350,663,301 658,976,591 $258,961,687 724,442,573
Balanced............................ 144,381,868 420,705,675 166,235,695 379,252,647
High Yield.......................... ----- 175,086,962 ----- 123,848,390
Strategic Bond...................... 58,259,438 692,541,918 64,494,843 730,620,995
Global Bond......................... 10,794,632 816,345,519 1,696,327 824,399,286
Total Return *...................... 208,911,292 177,630,550 84,191,280 34,135,693
Investment Quality Bond............. 59,079,263 49,085,130 106,227,721 51,255,731
Diversified Bond.................... 301,650,665 101,128,076 181,372,332 144,546,422
U.S. Government Securities.......... 1,790,150,133 ----- 1,719,850,936 -----
Lifestyle Aggressive 1000........... ----- 105,048,563 ----- 101,725,718
Lifestyle Growth 820................ ----- 448,760,160 ----- 458,248,695
Lifestyle Balanced 640.............. ----- 477,210,599 ----- 464,725,681
Lifestyle Moderate 460.............. ----- 190,526,406 ----- 166,180,805
Lifestyle Conservative 280.......... ----- 118,204,418 ----- 88,186,597
</TABLE>
* For the period May 1, 1999 (commencement of operations) to December 31, 1999.
At December 31, 1999, 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........ $89,147,480 $20,418,488 $23,638,584 $3,220,096
Science & Technology................ 898,662,092 360,267,580 364,566,220 4,298,640
International Small Cap............. 182,585,630 66,227,562 70,214,521 3,986,959
Aggressive Growth................... 127,544,291 40,254,679 43,039,601 2,784,922
Emerging Small Company.............. 390,428,687 179,354,789 199,291,742 19,936,953
Small Company Blend................. 45,549,745 7,936,198 12,342,304 4,406,106
Mid Cap Growth...................... 576,751,337 194,856,469 209,826,307 14,969,838
Mid Cap Stock....................... 98,824,988 3,502,448 10,454,873 6,952,425
Overseas............................ 349,850,012 86,258,626 95,039,349 8,780,723
International Stock................. 188,759,963 55,648,761 62,752,045 7,103,284
International Value................. 96,722,867 4,315,470 12,115,154 7,799,684
Mid Cap Blend....................... 1,793,274,219 159,732,278 300,137,260 140,404,982
Small Company Value................. 81,123,206 9,713,134 16,097,962 6,384,828
Global Equity....................... 813,515,627 83,271,146 155,106,706 71,835,560
Growth.............................. 530,985,974 121,277,091 137,772,877 16,495,786
Large Cap Growth.................... 364,630,989 59,453,127 72,324,828 12,871,701
</TABLE>
207
<PAGE> 250
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
PURCHASES AND SALES OF SECURITIES, CONTINUED
<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>
Quantitative Equity................. $416,240,053 $52,223,073 $75,775,175 $23,552,102
Blue Chip Growth.................... 1,265,116,734 507,352,899 539,013,365 31,660,466
Real Estate Securities.............. 224,521,205 (11,619,126) 3,512,048 15,131,174
Value............................... 161,559,277 (9,036,915) 12,216,702 21,253,617
Equity Index........................ 93,843,017 24,071,419 29,671,802 5,600,383
Growth & Income..................... 2,144,898,052 1,104,045,436 1,230,086,753 126,041,317
U.S. Large Cap Value................ 209,065,189 5,442,633 22,892,897 17,450,264
Equity-Income....................... 952,865,418 97,752,827 172,056,814 74,303,987
Income & Value...................... 722,971,049 9,610,936 61,078,938 51,468,002
Balanced............................ 259,115,846 5,389,071 10,456,558 5,067,487
High Yield.......................... 262,548,169 (11,043,644) 3,409,460 14,453,104
Strategic Bond...................... 424,612,422 (18,792,009) 16,689,597 35,481,606
Global Bond......................... 197,311,761 (7,459,853) 1,048,085 8,507,938
Total Return........................ 281,853,184 (6,109,413) 479,428 6,588,841
Investment Quality Bond............. 353,090,575 (18,231,642) 1,038,038 19,269,680
Diversified Bond.................... 276,353,002 (8,024,341) 267,038 8,291,379
U.S. Government Securities.......... 543,603,305 (14,224,271) 182,108 (14,406,379)
Lifestyle Aggressive 1000........... 84,551,066 8,519,040 9,110,166 591,126
Lifestyle Growth 820................ 382,062,550 32,193,784 33,489,517 1,295,733
Lifestyle Balanced 640.............. 401,216,964 15,487,244 21,014,812 5,527,568
Lifestyle Moderate 460.............. 166,078,435 1,421,298 3,656,735 2,235,437
Lifestyle Conservative 280.......... 107,098,807 (663,779) 1,207,676 1,871,455
</TABLE>
6. INVESTMENT ADVISORY AGREEMENTS. The Trust has entered into an Investment
Advisory Agreement with MSS (the "Adviser"). 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. On April
27, 1999, the shareholders of the Trust voted to approve an Amended and Restated
Advisory Agreement to change Advisory Fees as discussed below for Aggressive
Growth, Mid Cap Growth, Mid Cap Blend, Large Cap Growth, Blue Chip Growth,
Equity-Income and Income & Value. This change in Advisory Fees was effective May
1, 1999. Advisory fees charged to each Portfolio were as follows:
<TABLE>
<CAPTION>
PORTFOLIO FEE
--------- ---
<S> <C>
Pacific Rim Emerging Markets...................... .850%
Science & Technology.............................. 1.100%
International Small Cap........................... 1.100%
Aggressive Growth **.............................. 1.000%
Emerging Small Company............................ 1.050%
Small Company Blend *............................. 1.050%
Mid Cap Growth**.................................. .950%
Mid Cap Stock *................................... .925%
Overseas.......................................... .950%
International Stock............................... 1.050%
International Value *............................. 1.000%
Mid Cap Blend **.................................. .850%
Small Company Value............................... 1.050%
Global Equity..................................... .900%
Growth............................................ .850%
Large Cap Growth **............................... .875%
Quantitative Equity............................... .700%
Blue Chip Growth **............................... .875%
Real Estate Securities............................ .700%
Value............................................. .800%
Equity Index...................................... .250%
Growth & Income................................... .750%
</TABLE>
208
<PAGE> 251
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
INVESTMENT ADVISORY AGREEMENTS, CONTINUED
<TABLE>
<CAPTION>
PORTFOLIO FEE
--------- ---
<S> <C>
U.S. Large Cap Value *............................ .875%
Equity-Income **.................................. .875%
Income & Value**.................................. .800%
Balanced.......................................... .800%
High Yield........................................ .775%
Strategic Bond.................................... .775%
Global Bond....................................... .800%
Total Return *.................................... .775%
Investment Quality Bond........................... .650%
Diversified Bond.................................. .750%
U.S. Government Securities........................ .650%
Money Market...................................... .500%
</TABLE>
* For the period May 1, 1999 (commencement of operations) to December 31,
1999.
** For the period May 1, 1999 to December 31, 1999. Prior to May 1, 1999,
Advisory fees were 1.05%, 1.00%, .750%, .750%, .925%, .800% and .750% in
Aggressive Growth, Mid Cap Growth, Mid Cap Blend, Large Cap Growth, Blue
Chip Growth, Equity-Income and Income & Value, respectively.
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, Aggressive Growth, Emerging Small
Company, Small Company Blend, Mid Cap Growth, Mid Cap Stock, Mid Cap Blend,
Small Company Value, Growth, Large Cap Growth, Quantitative Equity, Blue Chip
Growth, Real Estate Securities, Value, Growth & Income, U.S. Large Cap Value,
Equity-Income, Income & Value, Balanced, High Yield, Strategic Bond, Total
Return, Investment Quality Bond, Diversified Bond, U.S. Government Securities,
Money Market and 0.75% of the average daily net assets of Pacific Rim Emerging
Markets, International Small Cap, Overseas, International Stock, International
Value, Global Equity and Global Bond. 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). Any of these expense reimbursements may
be terminated at any time. For the year ended December 31, 1999, the Adviser
reimbursed Equity Index, Lifestyle Aggressive 1000, Lifestyle Growth 820,
Lifestyle Balanced 640, Lifestyle Moderate 460 and Lifestyle Conservative 280
the amounts of $9,984, $24,201, $123,137, $114,656, $54,291, and $29,808,
respectively, for expenses incurred in excess of the applicable limitations.
FUND ADMINISTRATION FEES. Effective May 1, 1999, the Amended Advisory Agreement
requires the Trust to reimburse the Adviser for all expenses associated with
providing the administrative, financial, accounting and recordkeeping services
of the Trust including, the preparation of all tax returns, annual, semiannual
and periodic reports to shareholders and the preparation of all regulatory
reports. Total expense reimbursed by the Trust for the year ended December 31,
1999 was $821,724 of which $234,136 remains payable to the Adviser at December
31, 1999.
7. TRUSTEES' FEES. The Trust pays each Trustee who is not an employee 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 $40,000.
8. COMMITMENTS. At December 31, 1999, Pacific Rim Emerging Markets, Science &
Technology, International Small Cap, Overseas, International Value, Global
Equity, Balanced, High Yield, Strategic Bond, Global Bond and Total Return 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, 1999 were as follows:
PACIFIC RIM EMERGING MARKETS
CROSS CURRENCY:
<TABLE>
<CAPTION>
NET UNREALIZED
PAYABLE RECEIVABLE IN EXCHANGE SETTLEMENT APPRECIATION
CURRENCY VALUE CURRENCY FOR DATE VALUE (DEPRECIATION)
-------- ----- -------- --- ---- ----- --------------
<S> <C> <C> <C> <C> <C> <C>
Australian Dollar $1,718,746 SGD 2,740,228 1/4/2000 $1,711,879 ($6,867)
Singapore Dollar 72,359 NZD 129,573 1/5/2000 72,435 76
---------- ---------- -------
$1,791,105 $1,784,314 ($6,791)
========== ========== ========
</TABLE>
209
<PAGE> 252
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
COMMITMENTS, CONTINUED
<TABLE>
<CAPTION>
NET UNREALIZED
CONTRACTS TO IN EXCHANGE SETTLEMENT APPRECIATION
DELIVER FOR DATE VALUE (DEPRECIATION)
------- --- ---- ----- --------------
<S> <C> <C> <C> <C> <C>
SCIENCE & TECHNOLOGY
PURCHASES
Japanese Yen $423,893 43,186,200 1/4/2000 $422,690 ($1,203)
========
INTERNATIONAL SMALL CAP
PURCHASES
Euro $2,267,634 2,247,630 1/3/2000 $2,264,149 ($3,485)
Hong Kong Dollar 868,677 6,750,494 1/3/2000 868,398 (279)
Euro 617,136 613,761 1/4/2000 618,272 1,136
Singapore Dollar 39,974 66,545 1/4/2000 39,955 (19)
Euro 156,641 155,274 1/5/2000 156,415 ($226)
British Pound 182,433 112,975 1/5/2000 182,489 56
Indonesian Rupiah 1,646,282 11,377,324,886 1/5/2000 1,628,240 (18,042)
Japanese Yen 2,697,135 274,703,279 1/5/2000 2,688,688 (8,447)
Singapore Dollar 100,729 167,513 1/5/2000 100,578 (151)
Swiss Franc 358,388 571,987 1/5/2000 359,221 833
Euro 168,269 167,348 1/6/2000 168,578 309
Japanese Yen 649,356 66,305,660 1/6/2000 648,974 (381)
Singapore Dollar 117,055 194,721 1/6/2000 116,915 (141)
Swiss Franc 129,367 205,978 1/6/2000 129,359 (8)
British Pound 116,612 72,160 1/7/2000 116,561 (51)
------- ------- ----
$10,115,688 $10,086,792 ($28,896)
----------- ----------- ---------
SALES
British Pound 495,645 $801,211 1/7/2000 $800,616 $595
----
($28,301)
========
OVERSEAS TRUST
PURCHASES
Euro $383,775 379,299 1/3/2000 $382,173 ($1,602)
Japanese Yen 779,662 79,615,628 1/4/2000 779,786 124
British Pound 2,639,786 1,633,045 1/5/2000 2,637,927 (1,859)
British Pound 244,023 150,771 1/7/2000 243,550 (473)
British Pound 38,574 23,899 1/10/2000 38,607 33
Euro 346,790 343,723 1/31/2000 347,040 250
------- ------- ---
$4,432,610 $4,429,083 ($3,527)
---------- ---------- --------
SALES
Danish Krone 233,328 $31,506 1/3/2000 $31,578 ($72)
Euro 65,196 66,042 1/3/2000 65,690 352
Norwegian Krone 74,528 9,269 1/3/2000 9,307 (38)
Swedish Krona 224,374 26,340 1/3/2000 26,375 (35)
Danish Krone 1,242,411 167,767 1/4/2000 168,192 (424)
Euro 31,137 31,314 1/4/2000 31,375 (61)
British Pound 109,898 177,863 1/4/2000 177,521 342
Japanese Yen 1,367,124 13,399 1/4/2000 13,390 9
</TABLE>
210
<PAGE> 253
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
NET UNREALIZED
CONTRACTS TO IN EXCHANGE SETTLEMENT APPRECIATION
DELIVER FOR DATE VALUE (DEPRECIATION)
------- --- ---- ----- --------------
<S> <C> <C> <C> <C> <C>
Norwegian Krone 21,549 2,680 1/4/2000 $2,691 ($11)
Swedish Krona 55,257 6,484 1/4/2000 6,496 (12)
Australian Dollar 184,900 120,148 1/5/2000 121,397 (1,249)
Euro 12,771 12,823 1/5/2000 12,870 (47)
British Pound 13,010 21,044 1/5/2000 21,016 28
Japanese Yen 142,755,487 1,400,552 1/5/2000 1,398,444 2,108
Norwegian Krone 47,205 5,883 1/5/2000 5,895 (12)
Australian Dollar 131,116 85,514 1/6/2000 86,086 (572)
Japanese Yen 714,598 6,984 1/6/2000 7,001 (17)
British Pound 75,588 122,327 1/6/2000 122,101 226
British Pound 330,984 535,698 1/7/2000 534,659 1,039
British Pound 167,240 269,925 1/10/2000 270,157 (231)
Euro 1,095,959 1,108,877 1/31/2000 1,106,537 2,341
--------- --------- -----
$4,222,440 $4,218,776 3,664
---------- ---------- -----
$137
====
INTERNATIONAL VALUE
PURCHASES
Euro $175,300 173,909 1/3/2000 $175,227 ($73)
=====
GLOBAL EQUITY TRUST
SALES
Euro 55,000,000 $59,875,750 4/12/2000 $55,823,112 $4,052,638
==========
BALANCED TRUST
SALES
Canadian Dollar 1,120,492 $770,680 1/4/2000 $776,233 ($5,553)
British Pound 207,821 333,969 1/4/2000 335,694 (1,725)
Canadian Dollar 1,285,375 883,783 1/5/2000 890,457 (6,674)
British Pound 1,246,978 2,013,620 1/5/2000 2,014,243 (623)
British Pound 132,345 213,870 1/7/2000 213,777 93
------- ------- --
$4,215,922 $4,230,404 ($14,482)
---------- ---------- =========
HIGH YIELD TRUST
SALES
Euro 3,020,000 $3,117,830 1/26/2000 $3,048,214 $69,616
Euro 10,375,000 10,609,491 1/31/2000 10,475,121 134,370
British Pound 4,850,000 7,749,573 2/3/2000 7,835,307 (85,734)
Euro 2,445,000 2,511,650 2/10/2000 2,470,528 41,122
British Pound 275,000 447,356 2/10/2000 444,253 3,103
------- ------- -----
$24,435,900 $24,273,423 $162,477
----------- ----------- ========
STRATEGIC BOND TRUST
PURCHASES
Euro $1,582,663 1,500,923 1/18/2000 $1,514,024 ($68,639)
British Pound 3,545,104 2,162,875 1/18/2000 3,494,020 (51,084)
</TABLE>
211
<PAGE> 254
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
NET UNREALIZED
CONTRACTS TO IN EXCHANGE SETTLEMENT APPRECIATION
DELIVER FOR DATE VALUE (DEPRECIATION)
------- --- ---- ----- --------------
<S> <C> <C> <C> <C> <C>
Canadian Dollar $1,987,395 2,916,205 1/26/2000 $2,021,604 $34,209
Euro 6,578,998 5,054,001 1/28/2000 6,222,537 (356,461)
British Pound 3,910,742 2,376,167 1/28/2000 3,838,780 (71,962)
--------- --------- --------
$17,604,902 $17,090,965 ($513,937)
----------- ----------- ----------
SALES
Euro 1,674,497 $1,700,000 1/18/2000 $1,689,113 $10,887
Euro 3,380,166 3,549,867 1/28/2000 3,412,265 137,602
Greek Drachma 1,088,670,000 3,460,819 1/28/2000 3,313,660 147,159
British Pound 4,528,530 7,491,774 1/28/2000 7,315,999 175,775
Japanese Yen 552,240,844 5,375,318 1/28/2000 5,431,414 (56,096)
--------- --------- --------
$21,577,778 $21,162,451 $415,327
----------- ----------- --------
</TABLE>
CROSS CURRENCY:
<TABLE>
<CAPTION>
NET UNREALIZED
PAYABLE RECEIVABLE IN EXCHANGE SETTLEMENT APPRECIATION
CURRENCY VALUE CURRENCY FOR DATE VALUE (DEPRECIATION)
-------- ----- -------- --- ---- ----- --------------
<S> <C> <C> <C> <C> <C> <C>
Euro $7,705,770 GRD 1,268,539,500 1/28/2000 $7,709,134 $3,364
Euro 7,043,634 JPY 369,845,000 1/28/2000 7,113,483 69,849
Euro 5,181,115 SEK 24,419,268 1/28/2000 5,177,303 (3,812)
Greek Drachma 7,242,745 EUR 1,182,845,600 1/28/2000 7,247,078 4,333
Swedish Krona 7,762,336 EUR 36,147,831 1/28/2000 7,730,639 (31,697)
--------- --------- -------
$34,935,600 $34,977,637 42,037
----------- ----------- ------
($56,573)
========
GLOBAL BOND TRUST
PURCHASES
Danish Krone $2,090,791 14,486,000 1/11/2000 $1,961,983 ($128,809)
Euro 1,718,174 1,700,000 1/18/2000 1,714,839 (3,334)
British Pound 1,084,088 671,000 1/18/2000 1,083,968 (120)
Japanese Yen 1,547,461 158,400,000 1/18/2000 1,555,198 7,737
Canadian Dollar 183,509 270,000 1/19/2000 187,132 3,622
Canadian Dollar 1,239,434 1,830,000 1/20/2000 1,268,367 28,933
British Pound 1,319,868 814,000 1/20/2000 1,314,990 (4,878)
Euro 34,814,207 32,739,000 1/24/2000 33,039,861 (1,774,345)
Danish Krone 3,976,089 27,936,000 1/27/2000 3,787,796 (188,293)
Swedish Krona 2,059,205 17,112,000 1/31/2000 2,015,227 (43,979)
Singapore Dollar 841,059 1,388,000 2/2/2000 834,879 (6,180)
Danish Krone 595,534 4,219,000 2/3/2000 572,281 (23,253)
Norwegian Krone 229,885 1,800,000 2/8/2000 224,807 (5,078)
Hong Kong Dollar 1,183,912 9,200,000 2/9/2000 1,183,360 (552)
Australian Dollar 2,058,123 3,195,000 2/10/2000 2,098,791 40,668
Danish Krone 4,687,940 33,656,000 2/10/2000 4,567,396 (120,544)
Japanese Yen 22,080,080 2,345,037,000 2/14/2000 23,120,822 1,040,742
Singapore Dollar 487,746 804,000 2/16/2000 484,080 (3,666)
Japanese Yen 10,518,468 1,068,224,000 2/22/2000 10,544,876 26,409
Australian Dollar 177,730 278,000 3/8/2000 182,668 4,938
------- ------- -----
$92,893,303 $91,743,321 ($1,149,982)
----------- ----------- ------------
</TABLE>
212
<PAGE> 255
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
COMMITMENTS, CONTINUED
GLOBAL BOND TRUST, CONTINUED
<TABLE>
<CAPTION>
NET UNREALIZED
CONTRACTS TO IN EXCHANGE SETTLEMENT APPRECIATION
DELIVER FOR DATE VALUE (DEPRECIATION)
------- --- ---- ----- --------------
<S> <C> <C> <C> <C> <C>
SALES
Danish Krone 4,735,000 $684,248 1/11/2000 $641,308 $42,940
Danish Krone 10,000,000 1,419,042 1/18/2000 1,355,048 63,994
Euro 8,855,000 9,118,967 1/18/2000 8,932,291 186,676
Japanese Yen 486,058,000 4,721,924 1/18/2000 4,772,200 (50,276)
Euro 3,249,000 3,393,470 1/24/2000 3,278,857 114,613
Australian Dollar 200,000 130,514 1/25/2000 131,356 (842)
Danish Krone 1,119,000 162,871 1/27/2000 151,724 11,147
Euro 2,640,000 2,713,390 1/31/2000 2,665,475 47,915
Singapore Dollar 575,000 342,022 2/2/2000 345,861 (3,839)
Danish Krone 3,706,000 527,605 2/3/2000 502,696 24,909
New Zealand Dollar 22,372,000 11,533,214 2/4/2000 11,696,922 (163,708)
Honk Kong Dollar 9,200,000 1,177,947 2/9/2000 1,183,360 (5,413)
Singapore Dollar 4,342,000 2,570,752 2/9/2000 2,612,987 (42,235)
Australian Dollar 5,199,000 3,455,516 2/10/2000 3,415,216 40,300
Danish Krone 66,418,000 9,169,957 2/10/2000 9,013,469 156,488
Japanese Yen 359,796,000 3,504,212 2/14/2000 3,547,398 (43,186)
Norwegian Krone 1,697,000 220,018 2/15/2000 211,946 8,072
Australian Dollar 2,496,000 1,651,953 2/17/2000 1,639,730 12,223
Honk Kong Dollar 11,400,000 1,458,117 2/17/2000 1,466,299 (8,182)
Honk Kong Dollar 22,700,000 2,905,731 2/18/2000 2,919,727 (13,996)
Japanese Yen 276,308,000 2,670,985 2/22/2000 2,730,215 (59,230)
Honk Kong Dollar 13,300,000 1,703,032 2/23/2000 1,710,649 (7,617)
Australian Dollar 394,000 255,684 2/24/2000 258,851 (3,167)
Honk Kong Dollar 19,900,000 2,536,647 9/18/2000 2,551,800 (15,153)
Honk Kong Dollar 11,870,000 1,514,301 9/27/2000 1,521,804 (7,503)
Honk Kong Dollar 15,650,000 1,997,116 10/26/2000 2,005,149 (8,033)
--------- -------- -------
$71,539,235 $71,262,338 276,897
----------- ----------- -------
($873,085)
=========
TOTAL RETURN
PURCHASES
Euro $3,763,379 3,720,000 1/24/2000 $3,754,186 ($9,193)
Euro 3,097,947 3,060,000 1/26/2000 3,088,585 (9,359)
--------- --------- -------
$6,861,326 $6,842,771 ($18,552)
---------- ---------- ---------
SALES
Euro 14,846,000 $15,055,414 1/24/2000 $14,982,430 $72,984
-------
$54,432
=======
</TABLE>
9. LINE OF CREDIT. On December 17,1999, all Portfolios with the exception of
Growth, Money Market, Lifestyle Aggressive 1000, Lifestyle Growth 820, Lifestyle
Balanced 640, Lifestyle Moderate 460, and Lifestyle Conservative 280 entered
into an agreement which enables them to participate in a $100 million unsecured
committed line of credit with State Street Bank & Trust Company. Borrowings will
be made solely to temporarily finance the repurchase of capital shares. Interest
is charged to each participating Portfolio based on its borrowings at a rate per
annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee
of 0.09% per annum, payable at the end of each calendar quarter, based on the
average daily unused portion of the line of credit is charged to each
participating portfolio on a prorata basis based on average net assets. For the
period December 17, 1999 through December 31, 1999, none of the Portfolios
borrowed under the agreement.
213
<PAGE> 256
MANUFACTURERS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS - CONTINUED
10. CAPITAL LOSS CARRYFORWARDS. At December 31, 1999, capital loss
carryforwards available to offset future realized gains were approximately:
<TABLE>
<CAPTION>
CAPITAL LOSS CARRYFORWARD
EXPIRATION YEAR
PORTFOLIO 2002 2003 2004 2005 2006 2007
- --------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Pacific Rim Emerging Markets -- -- -- -- $ 6,359,000 --
Aggressive Growth .......... -- -- -- -- 572,000 --
Mid Cap Stock .............. -- -- -- -- -- $ 1,875,000
Small Company Value ........ -- -- -- -- 15,065,000 --
Real Estate Securities ..... -- -- -- -- 7,351,000 26,456,000
High Yield ................. -- -- -- -- -- 2,604,000
Strategic Bond ............. -- -- -- -- 10,173,000 11,486,000
Global Bond ................ -- -- -- -- 6,824,000 4,338,000
Total Return ............... -- -- -- -- -- 2,110,000
Investment Quality Bond .... $ 2,504,000 -- $213,000 -- 95,000 2,131,000
U.S. Government Securities . 156,000 -- -- $872,000 -- 5,997,000
</TABLE>
214
<PAGE> 257
Management of the Trust Issuer of Venture Annuities
The Manufacturers Life Insurance
Trustees Company of North America
John D. Richardson, Chairman of the Board P.O. Box 9230
Don B. Allen Boston, Massachusetts 02205-9230
Charles L. Bardelis 800-344-1029
John D. DesPrez, III
Samuel Hoar Issuer of Venture SPVL, VUL,
F. David Rolwing Survivorship VUL and COLI VUL
Variable Life
Officers The Manufacturers Life Insurance
Matthew R. Schiffman, President Company of America
John G. Vrysen, Treasurer 200 Bloor Street East
Gordon M. Shone, Assistant Treasurer Toronto, Ontario, Canada M4W1E5
James D. Gallagher, Secretary 800-827-4546
Investment Adviser Principal Underwriter of
Manufacturers Securities Services, LLC Venture Annuities
Boston, Massachusetts Manufacturers Securities Services,
LLC
Boston, Massachusetts
Principal Underwriter of Venture
SPVL, VUL, Survivorship VUL and
Manulife Financial and the block design COLI VUL
are registered service marks of The ManEquity, Inc.
Manufacturers Life Insurance Company Toronto, Ontario, Canada
and are used by it and its subsidiaries.
Promotional Agent of
Venture Annuities and Venture SPVL
Manulife Wood Logan, Inc.
Stamford, Connecticut
|
|